amendrestaterstrobelnicorinc.htm


    Nicor Inc.

    Form 8-K

    Exhibit 10.9

     

    


      AMENDED AND
RESTATED

      SUPPLEMENTAL RETIREMENT
BENEFIT AGREEMENT

       

      (As
Amended And Restated for Post-2004 Benefits, Effective January 1,
2008)

       

      This
Amended and Restated Supplemental Retirement Benefit Agreement (the
“Agreement”), is entered into as of this    24   
day of     
July      , 2008 (the “Effective Date”), by and
between Nicor Inc., an Illinois corporation, (the “Company”), and Russ M.
Strobel (the “Executive”).

       

      WITNESSETH
THAT

       

      WHEREAS,
the Executive currently serves as Chairman of the Board of Directors, President
and Chief Executive Officer of the Company, and

       

      WHEREAS,
the Executive and the Company are parties to a Supplemental Retirement Benefit
Agreement dated January 1, 2001 (the “Prior Agreement”); and

       

      WHEREAS,
the Executive and the Company desire to amend and restate the Prior Agreement in
the form of this Agreement for purposes of that portion of Executive’s benefit
that was not earned and vested within the meaning of Treas. Reg. §1.409A-6(a) as
of December 31, 2004; and

       

      WHEREAS,
notwithstanding any provisions of the Agreement to the contrary, the provisions
of the Prior Agreement in effect on October 3, 2004 apply with respect to those
benefits that were earned and vested under such Prior Agreement within the
meaning of Treas. Reg. §1.409A-6(a) as of December 31, 2004;

       

      NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Executive agree as
follows:

       

       

      
        	
                1.  

              	
                Supplementary
      Retirement Plan.  This Agreement is granted under and
      subject to the terms and conditions of the Nicor Gas Supplementary
      Retirement Plan (the “Plan”), unless otherwise provided
      herein.  The Executive shall be a Limited Participant in the
      Plan, and benefits payable under the Agreement shall be paid under the
      Plan.  By execution of this Agreement, Executive consents to the
      provisions of the Plan and this Agreement.  Capitalized terms in
      this Agreement shall have the meaning set forth in the Plan, unless
      otherwise defined herein.

              


      

       

      
        	
                2.  

              	
                Supplemental
      Retirement Benefit.  Subject to the following provisions
      of this Agreement and notwithstanding any provisions of the Plan to the
      contrary, the Executive shall be entitled to a Supplemental Retirement
      Benefit in an amount equal to $50,000 per year, determined as though
      payment would commence on the first day of the month next following the
      later of the Executive’s sixtieth (60th)
      birthday or Separation from Service and be payable for the Executive’s
      life.

              


      

       

      This
Agreement applies only with respect to the 25% portion of the Supplemental
Retirement Benefit that was not earned and vested as of December 31,
2004.  The terms of the Prior Agreement as in effect on October 3,
2004 apply with respect to the

       

      
        
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      75%
portion of the Supplemental Retirement Benefit that was earned and vested on
December 31, 2004.

       

      
        	
                3.  

              	
                Vesting
      Percentage.  The Executive is fully vested in the
      Supplemental Retirement Benefit.

              


      

       

      
        	
                4.  

              	
                Time and Form of
      Payment.  The Supplemental Retirement Benefit shall be
      paid as an Actuarially Equivalent Lump Sum.  The “Actuarially
      Equivalent Lump Sum” shall be determined as of the Executive’s Separation
      from Service, as the actuarial equivalent of the amount of the
      Supplemental Retirement Benefit described in section (2) of this Agreement
      determined using the lump sum actuarial factors set forth in the
      Plan.  In addition, interest on the Supplemental Retirement
      Benefit shall accrue commencing on the Executive’s Separation from Service
      and ending on the Executive’s payment date (as described below), at the
      first segment interest rate in effect at the Executive’s Separation from
      Service under Section 417(e)(3)(D) of the
Code.

              


      

       

      Payment
of the Supplemental Retirement Benefit shall be made on the first business day
of the seventh month after the Executive’s Separation from Service date (the
“payment date”).  If due to administrative reasons the Supplemental
Retirement Benefit cannot be distributed on the date otherwise payable under
this paragraph 4, then such benefit and interest thereon shall be distributed as
soon as practicable thereafter, but no later than December 31st of the
calendar year in which such distribution is otherwise payable (or the 15th day of
the third calendar month following the date otherwise payable, if
later).

       

      
        	
                5.  

              	
                Death.  If
      the Executive’s Separation from Service occurs as the result of death
      while employed by the Company or Nicor Gas Company (“Nicor Gas”), no
      benefits shall be payable under this
Agreement.

              


      

       

      
        	
                6.  

              	
                Cause.  If
      the Executive’s Separation from Service occurs for “Cause”, no benefits
      shall be payable under this Agreement.  “Cause” means: (a)the
      Executive’s willful commission of acts or omissions which have, have had,
      or are likely to have a material adverse effect on the business,
      operations, financial condition or reputation of the Company or Nicor Gas;
      (b) the Executive’s conviction (including a plea of guilty or nolo contendere) of a
      felony or any crime of fraud, theft, dishonesty or moral turpitude; or (c)
      the Executive’s material violation of any statutory or common law duty of
      loyalty to the Company or Nicor Gas.  For purposes of this
      Agreement, no act, or failure to act, on the part of the Executive shall
      be considered “willful” unless it is done, or omitted to be done, by the
      Executive in bad faith or without reasonable belief that the Executive’s
      action or omission was in the best interests of the Company or Nicor
      Gas.  Any act, or failure to act, pursuant to direction provided
      by the person to whom the Executive reports, or provided by a resolution
      duly adopted by the Board, or pursuant to advice of counsel for the
      Company or Nicor Gas, shall be conclusively presumed to be done, or
      omitted to be done, by the Executive in good faith and in the best
      interests of the Company or Nicor
Gas.

              


      

       

      
        	
                7.  

              	
                Heirs and
      Successors.  This Agreement shall be binding upon, and
      inure to the benefit of, the heirs, executors and legal representatives of
      the Executive and the Company and its successors and assigns, and upon any
      person acquiring, whether by merger, consolidation, purchase of assets or
      otherwise, all or substantially all of the
  Company’s

              


      

       

      
        
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                  assets
      and business.

                


        

         

        	
                8.  

              	
                Benefit May Not Be
      Assigned or Alienated.  The benefit payable to any person
      under this Agreement may not be voluntarily or involuntarily assigned or
      alienated.

              


      

       

      
        	
                9.  

              	
                Applicable
      Laws.  This Agreement shall be interpreted and
      administered in accordance with the laws of the State of Illinois, without
      regard to its choice of law
principles.

              


      

       

      
        	
                10.  

              	
                Entire Agreement and
      Amendment.  The Plan, the Prior Agreement and this
      Agreement constitute the entire agreement between the Executive and the
      Company with respect to supplemental retirement benefits, and supersede
      all other agreements, verbal and written, that may have been made by the
      parties hereto.  This Agreement may be amended or cancelled by
      mutual agreement of the parties hereto in writing without the consent of
      any other person and, so long as the Executive lives, no person, other
      than the parties hereto, shall have any rights under or interest in this
      Agreement or the subject matter
hereof.

              


      

       

      
        	
                11.  

              	
                Section 409A
      Compliance.  To the extent applicable, this Agreement
      shall be interpreted in accordance with Section 409A of the Internal
      Revenue Code of 1986 (the “Code”) and Department of Treasury regulations
      and other interpretive guidance issued
      thereunder.  Notwithstanding section (10) of this Agreement, if
      the Company determines that any compensation or benefits payable under
      this Agreement do not comply with Code Section 409A and related Department
      of Treasury guidance, the Company and Executive agree to amend this
      Agreement or take such other actions as the Company deems necessary or
      appropriate to comply with the requirements of Code Section 409A while
      preserving the economic agreement of the
  parties.

              


      

       

      
        	
                12.  

              	
                Severability.  If
      any one or more sections or other portions of this Agreement are declared
      by any court or governmental authority to be unlawful or invalid, such
      unlawfulness or invalidity shall not serve to invalidate any section or
      other portion not so declared to be unlawful or invalid. Any section or
      other portion so declared to be unlawful or invalid shall be construed so
      as to effectuate the terms of such section or other portion to the fullest
      extent possible while remaining lawful and
  valid.

              


      

       

      
        	
                13.  

              	
                Notices.  All
      notices and other communications under this Agreement shall be in writing
      and delivered by hand, by a nationally-recognized commercial delivery
      service, or by first-class registered or certified mail, return receipt
      requested, postage prepaid, addressed as
  follows:

              


      

       

      If to the
Executive:

       

      Russ M.
Strobel

      44
Woodley Road

      Winnetka,
IL 60093

      


      If to the
Company:

       

      Nicor
Inc.

      1844
Ferry Road

      Naperville,
IL 60563-9600

      Attn:
Senior Vice President – 

      Human
Resources

       

      
        
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                14.  

              	
                Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed as original, but all of which together shall constitute one and
      the same instrument.

              


      

       

      
        	
                15.  

              	
                Captions.  The
      captions of this Agreement are not a part of the provisions hereof and
      shall have no force or effect.

              


      

       

      
        	
                16.  

              	
                Tax
      Withholding.  The Company may withhold from any amounts
      payable under this Agreement any federal, state, or local taxes that are
      required to be withheld pursuant to any applicable law or
      regulation.

              


      

       

      
        	
                17.  

              	
                No
      Waiver.  A waiver of any provision of this Agreement
      shall not be deemed a waiver of any other provision, and any waiver of any
      default as to any such provision shall not be deemed a waiver of any later
      default as to that or any other
provision.

              


      

       

      


       

      IN
WITNESS WHEREOF, the Executive and the Company have executed this Agreement as
of the date first above written.

       

      


       

      EXECUTIVE                                                                                                                          
NICOR INC.

       

      


       

      /s/ RUSS M.
STROBEL                                                                                                       
By: /s/ CLAUDIA J.
COLALILLO

      Russ M.
Strobel                                                                                                                    Its: Senior Vice President Human
Resources

                                                         and Corportate
Communications              

       

       

       

      
 

      



      
        
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