Form of 2007 Stock Award and Incentive Plan Deferred Stock Retention Award



 Exhibit 10.2 
 



 
 NEW JERSEY RESOURCES CORPORATION 

Deferred Stock Retention Award Agreement 
 This Deferred Stock Retention Award Agreement (the “Agreement”), which includes the attached “Terms and Conditions of Deferred Stock,” confirms the grant on
                    (the “Grant Date”) by New Jersey Resources Corporation, a New Jersey corporation (“NJR”), to
                    (“Employee”), under Section 6(e) of the 2007 Stock Award and Incentive Plan (the “Plan”), of Deferred
Stock as follows: 
 Based upon his or her contribution to the success of NJR in fiscal year 20    ,
Employee is hereby awarded a deferred stock award and dividend equivalents (collectively, the “Retention Award”) of
                    deferred stock units of NJR common stock issued under the Plan (“Deferred Stock”). Until the Deferred Stock is
distributed to Employee or otherwise forfeited, dividend equivalents equal to the per share dividend paid on NJR common shares will be accumulated on behalf of Employee and paid as described herein. 

The Retention Award will be paid to Employee on
                    (“Award Date”), subject to the terms and conditions set forth herein. 

Upon the Award Date, the payout of the Deferred Stock will be in the form of fully transferable shares of NJR common stock and the payout of the dividend
equivalents will be in cash. subject to the terms and conditions set forth herein. Prior to             , 20    , if not previously forfeited, the Retention Award will
be paid in full upon a Change in Control, and will be immediately paid upon the occurrence of certain events relating to Employee’s Disability and death to the extent provided in Section 3 of the Terms and Conditions attached hereto as
Exhibit “A,” and subject to the terms and conditions set forth herein. 
 Conditions to Retention Award: Employee is not
required to continue his/her employment with NJR in order to receive distribution of the Retention Award. However, NJR’s obligation to pay the Retention Award and Employee’s right to distribution of the Retention Award will be forfeited
immediately upon the occurrence of any one or more of the following events (defined terms are attached hereto as Exhibit “B”): 
  

	 	(a)	Competitive Employment. In the event that Employee, during the Restricted Period and within the Restricted Territory, directly or indirectly, whether on
Employee’s own behalf or on behalf of any other person or entity, performs services of the type which are the same as or similar to those conducted, authorized, offered or provided by Employee to NJR within the 24 months prior to
Employee’s termination or resignation, and which support business activities which compete with the Business of NJR. 

  

	 	(b)	Recruitment of NJR Employees and Contractors. In the event that Employee, during the Restricted Period, directly or indirectly, whether on Employee’s own
behalf or on behalf of any other person or entity, solicits or induces any employee or independent contractor of NJR with whom Employee had Material Contact to terminate or lessen such employment or contract with NJR. 


 

	 	(c)	Solicitation of NJR Customers. In the event that Employee, during the Restricted Period, directly or indirectly, whether on Employee’s own behalf or on
behalf of any other person or entity, solicits any actual or prospective customers of NJR with whom Employee had Material Contact for the purpose of selling any products or services which compete with the Business of NJR. 









	 	(d)	Solicitation of NJR Vendors. In the event that Employee, during the Restricted Period, directly or indirectly, whether on Employee’s own behalf or on behalf
of any other person or entity, solicits any actual or prospective vendor of NJR with whom Employee had Material Contact for the purpose of purchasing products or services to support business activities which compete with the Business of NJR.


  

	 	(e)	Breach of Confidentiality. In the event that Employee, at any time, directly or indirectly, divulges or makes use of any Confidential Information of NJR other
than in the performance of Employee’s duties for NJR. This provision does not limit the remedies available to NJR under common or statutory law as to trade secrets or other forms of confidential information, which may impose longer duties of
non-disclosure and provide for injunctive relief and damages. 

  

	 	(f)	Return of Property and Information. In the event that Employee fails to return all of NJR’s property and information (whether confidential or not) within
Employee’s possession or control within seven (7) calendar days following the termination or resignation of Employee from employment with NJR. Such property and information includes, but is not limited to, the original and any copy
(regardless of the manner in which it is recorded) of all information provided by NJR to Employee or which Employee has developed or collected in the scope of Employee’s employment with NJR, as well as all NJR-issued equipment, supplies,
accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers. Upon request by NJR, Employee shall certify in writing that Employee has complied with
this provision, and has permanently deleted all NJR information from any computers or other electronic storage devices or media owned by Employee. Employee may only retain information relating to the Employee’s benefit plans and compensation to
the extent needed to prepare Employee’s tax returns. 

  

	 	(g)	Disparagement. In the event that Employee makes any statements, either verbally or in writing, that are disparaging with regard to NJR or any of its subsidiaries
or their respective executives and Board members. 

  

	 	(h)	Termination for Cause. In the event that Employee’s employment with NJR and its subsidiaries is terminated for Cause. 


 

	 	(i)	Failure to Provide Information. In the event that Employee fails to promptly and fully respond to requests for information from NJR regarding Employee’s
compliance with any of the foregoing conditions. 

 If it is determined by the Leadership Development and Compensation Committee
of the NJR Board of Directors, in its sole discretion, that any of the foregoing events have occurred prior to full distribution of the Retention Award, any unpaid portion of the Retention Award will be forfeited without any compensation therefor.

 By signing below, Employee expressly agrees that the foregoing Conditions to Retention Award shall apply to any unpaid awards
under any pre-existing Deferred Stock Retention Award Agreements between Employee and NJR. To the extent that there is any conflict between the conditions contained in such pre-existing agreements and the Conditions to Retention Award contained in
this Agreement, the Conditions to Retention Award in this Agreement shall control. 
 The value of the Retention Award will not
be taxable to Employee for income tax purposes until it is distributed and will, at that time, be equal to the aggregate value of the then current fair market value of the shares of NJR common stock and cash distributed to Employee. Required income


  
 2 








 
tax withholdings will be deducted first from the cash paid with respect to the accumulated dividend equivalents and then in the form of shares from the share payout as described in
Section 7(c) of the attached Terms and Conditions, unless Employee has elected at least 90 days prior to payout to satisfy the tax obligations by other means. Employee will be responsible for satisfying any employment tax withholdings
attributable to the Deferred Stock and any related dividend equivalents, which Employee may satisfy by (i) delivering to the Company cash equal to the required withholdings or (ii) directing the Company to withhold such amounts from any
other cash compensation the Company will pay Employee contemporaneously with the time the withholdings are required hereunder. 

The Retention Award will not be considered as compensation for purposes of any pension or retirement plan, or other plan that provides
for benefits based on Employee’s level of compensation. 
 The Retention Award and the granting thereof shall not
constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue as an officer of employee of NJR or any of its subsidiaries for any period of time, or at any particular rate of compensation.

 The validity, construction, and effect of this Agreement and the Retention Award shall be determined in accordance with the
laws (including those governing contracts) of the state of New Jersey, without giving effect to principles of conflicts of laws, and applicable federal law. 
 If any provision in this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will in no way be affected or impaired thereby. In
the event that any provision of this Agreement is not enforceable in accordance with its terms, such provision shall be reformed to make it enforceable in a manner which provides NJR and its subsidiaries the maximum rights permitted by law.

 The terms of this Retention Award are governed by the Plan and this Agreement, including the attached Terms and Conditions.
Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan. 
 Employee
acknowledges and agrees that (i) receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof, (ii) the Deferred Stock is nontransferable, except as provided in Section 2 of the attached Terms and
Conditions and Section 11(b) of the Plan, (iii) the Deferred Stock is subject to forfeiture as described above in certain limited circumstances prior to payout, and (iv) sales of the shares following payout of the Deferred Stock will
be subject to the Company’s policy governing the purchase and sale of NJR securities. 
 IN WITNESS WHEREOF, NEW JERSEY
RESOURCES CORPORATION has caused this Agreement to be executed by its officer thereunto duly authorized, and Employee has duly executed this Agreement, by which each has agreed to the terms of this Agreement. 

 

	
	 /s/ LAURENCE M. DOWNES

	LAURENCE M. DOWNES
	Chairman and Chief Executive Officer


 Acknowledged and Agreed: 
  

							
	  
	 		 	  
	 	
	EMPLOYEE	 		 	Date	 	


  
 3 








 EXHIBIT A - TERMS AND CONDITIONS OF DEFERRED STOCK RETENTION AWARD 

The following Terms and Conditions apply to the Deferred Stock Retention Award granted to Employee by NEW JERSEY RESOURCES CORPORATION
(either the “Company” or “NJR”), as specified in the Deferred Stock Retention Award Agreement (of which these Terms and Conditions form a part). Certain terms and conditions of the Retention Award, including the number of shares
granted and payment date(s), are set forth on the preceding pages, which are an integral part of this Agreement. 
 1.
General. The Retention Award is granted to Employee under the Company’s 2007 Stock Award and Incentive Plan (the “Plan”), a copy of which has been previously delivered to Employee and/or is available upon request to the
Human Resources Department. All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.
If there is any conflict between the provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern. Employee agrees to be bound by all of the terms and provisions of the Plan (as presently in effect or later
amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations of the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) made
from time to time. 
 2. Nontransferability. Until such time as the Retention Award has been distributed in
accordance with the terms of this Agreement, Employee may not transfer either the Deferred Stock or any rights hereunder (including those with respect to the accumulated dividend equivalents) to any third party other than by will or the laws of
descent and distribution except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under Section 11(b) of the Plan. This restriction on transfer precludes any sale, assignment, pledge, or other encumbrance or
disposition of the shares of Deferred Stock (or any rights thereunder, including those with respect to the accumulated dividend equivalents, except for forfeitures to the Company). 

3. Early Payment Provisions. The following provisions will govern the payment of any Retention Award that is outstanding,
and has not been forfeited previously, at the time of Employee’s death or Disability: 
 (a) Death.
In the event of Employee’s death, the unpaid Retention Award will be paid as soon as administratively practicable (and no later than ninety (90) days) following Employee’s death to the Employee’s Beneficiary. 

(b) Disability. In the event of Employee’s Disability (as defined below), the unpaid
Retention Award will be paid to the Employee on the 31st
day after Employee’s Disability. 
 “Disability” means Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. The Company and Employee shall
agree on the identity of a physician to resolve any question as to Employee’s disability. If the Company and Employee cannot agree on the physician to make such determination, then the Company and Employee shall each select a physician and
those physicians shall jointly select a third physician, who shall make the determination. The determination of any such physician shall be final and conclusive for all purposes of this Agreement. 

  
 4 








 4. Dividends and Adjustments. 

(a) Dividends. No dividends or distributions on NJR Common Stock will be paid with respect to the Deferred Stock at
the time such dividends are paid to the shareholders generally. However, dividend equivalents equal to any dividend or distribution with respect to NJR common stock will be accumulated and distributed in cash on the Award Date and on the same terms
as the Deferred Stock to which the dividends or distributions relate as set forth above. 
 (b)
Adjustments. The number and kind of shares of Deferred Stock, the number of such shares to be distributed and other terms and conditions of Deferred Stock or otherwise contained in this Agreement, other than the time and form of payment of
the Deferred Stock, shall be appropriately adjusted, in order to prevent dilution or enlargement of Employee’s rights hereunder, to reflect any changes in the number of outstanding shares of Common Stock resulting from any event referred to in
Section 11(c) of the Plan, taking into account any Deferred Stock or other amounts paid or credited to Employee in connection with such event under Section 4(a) hereof, in the sole discretion of the Committee subject to the requirements of
Code Section 409A. The Committee may determine how to treat or settle any fractional share resulting under this Agreement. 

5. 409A Award. The Retention Award payable under the Agreement is a 409A Award and is subject to all applicable terms and
conditions set forth in Section 11(k) of the Plan. All provisions of the Agreement shall be interpreted in a manner as to comply with Section 11(k) of the Plan and Code Section 409A. 

6. Other Terms of Deferred Stock.  

(a) Voting and Other Shareholder Rights. Employee shall not be entitled to vote Deferred Stock on any matter
submitted to a vote of holders of Common Stock, and shall not have all other rights of a shareholder of the Company, unless and until the Deferred Stock is distributed to Employee as described in the Agreement. 

(b) Consideration for Grant of Deferred Stock. Employee shall not be required to pay cash consideration for the
grant of the Deferred Stock and dividend equivalents, but Employee’s performance of services to the Company prior to the payout of the Deferred Stock shall be deemed to be consideration for this grant of Deferred Stock and dividend equivalents.

 (c) Insider Trading Policy Applicable. Employee acknowledges that sales of shares resulting from
Deferred Stock that have been distributed will be subject to the Company’s policies governing the purchase and sale of Company securities. 
 (d) Certificates Evidencing Deferred Stock. On the date any Deferred Stock subject to the Retention Award becomes payable (the “Payment Date”), such Deferred Stock shall be paid by
the Company delivering to the Employee, a number of shares of NJR common stock equal to the number of shares of Deferred Stock that become payable upon that Payment Date, subject to any applicable withholding requirements described above. The
Company shall issue the shares either (i) in certificate form or (ii) in book entry form, registered in the name of the Employee. Delivery of any certificates will be made to the Employee’s last address reflected on the books of the
Company unless the Company is otherwise instructed in writing. The Company shall pay the accumulated dividend equivalents in cash, subject to any applicable withholding requirements described above. Neither the Employee nor any of the
Employee’s successors, heirs, assigns or personal representatives shall have any further rights or interests in any Deferred Stock and dividend equivalents that are so paid. 

  
 5 








 (e) Stock Powers. Employee agrees to execute and deliver to the
Company one or more stock powers, in such form as may be specified by the General Counsel, authorizing the transfer of the Deferred Stock to the Company, at the Grant Date or upon request at any time thereafter. 

7. Employee Representations and Warranties and Release. As a condition to any non-forfeiture of the Retention
Award that would be distributed to Employee upon Disability, the Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation, and (ii) to execute a
release from claims against the Company arising at or before the date of such release, in such form as may be specified by the Company, all within thirty (30) days of Employee’s Disability. 

8. Miscellaneous. 
 (a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties. This Agreement constitutes the entire agreement
between the parties with respect to the Retention Award, and supersedes any prior agreements (either verbal or written) or documents with respect to the Retention Award. No amendment or alteration of this Agreement which may impose any additional
obligation upon the Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which may materially impair the rights of
Employee with respect to the Retention Award shall be valid unless expressed in a written instrument executed by Employee. All amendments must comply with the requirements of Code Section 409A. 

(b) Governing Law. The validity, construction, and effect of this Agreement shall be determined in accordance with
the laws (including those governing contracts) of the state of New Jersey, without giving effect to principles of conflicts of laws, and applicable federal law. 
 (c) Mandatory Tax Withholding. Unless otherwise determined by the Committee, or unless Employee has elected at least 90 days prior to payout to satisfy the tax obligations by other means, at the
time of payment of the Retention Award to Employee, the Company will withhold first from any accumulated dividend equivalents any cash payable and then from any Shares deliverable, in accordance with Section 11(d)(i) of the Plan, the number of
Shares having a value nearest to, but not exceeding, the amount of income and employment taxes required to be withheld under applicable local laws and regulations (after withholding of any cash payable with respect to the accumulated dividend
equivalents), and pay the amount of such withholding taxes in cash to the appropriate taxing authorities. Employee will be responsible for any withholding taxes not satisfied by means of such mandatory withholding and for all taxes in excess of such
withholding taxes that may be due upon payment of the Retention Award. 
 (e) Notices. Any notice to be
given the Company under this Agreement shall be addressed to the Company at its principal executive offices, in care of the Vice President, Corporate Services, and any notice to Employee shall be addressed to Employee at Employee’s address as
then appearing in the records of the Company. 
 (f) Shareholder Rights. Employee and any Beneficiary
shall not have any rights with respect to Deferred Shares (including voting rights) and accumulated dividend equivalents covered by this Agreement prior to the settlement and distribution of the Deferred Shares and the accumulated dividend
equivalents as specified herein. 

  
 6 








 EXHIBIT B - DEFINITIONS 

 

	 	a.	“Business of NJR” means the following areas of its business which are selected below, which Employee acknowledges are areas of NJR’s business in which
Employee has responsibilities: 

 (check as applicable) 

 

			
		
	 ̈	  	Natural Gas Distribution: Consists of New Jersey Natural Gas Company, a natural gas utility company that provides regulated retail natural gas service to residential and
commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets.
		
	 ̈	  	Energy Services: Maintains and transacts around a portfolio of physical assets consisting of natural gas storage and transportation contracts and also provides wholesale
energy management services to other energy companies and natural gas producers in market areas including states from the Gulf Coast and Mid-continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
		
	 ̈	  	Clean Energy Ventures: Invests, owns, and operates renewable energy projects, including residential and commercial rooftop and ground mount solar systems.
		
	 ̈	  	Midstream Assets: Includes investments in natural gas transportation and storage assets and is comprised of an equity investment in Iroquois, which is a 412-mile natural gas
pipeline from the New York-Canadian border to Long Island, New York and Steckman Ridge, which is a partnership that owns and operates a 17.7 Bcf natural gas storage facility in western Pennsylvania that is 50 percent owned by an NJR
Subsidiary.
		
	 ̈	  	Home Services: Consists of NJR Home Services Company, which provides Heating, Ventilating, and Air Conditioning (HVAC) service, sales and installation of appliances, as well
as installation of solar equipment.

  

	 	b.	“Cause” has the same meaning as in any employment or similar agreement between NJR and the Employee or, if no such agreement or definition exists, then
“Cause” means: (A) conviction of a felony or the entering by Employee of a plea of nolo contendere to a felony charge, (B) Employee’s gross neglect, willful malfeasance or willful gross misconduct in connection with
Employee’s employment hereunder which has had a significant adverse effect on the business of NJR or any of its subsidiaries, unless Employee reasonably believed in good faith that such act or non-act was in or not opposed to the best interests
of NJR or any of its subsidiaries, or (C) repeated material violations by Employee of his or her obligations under any applicable employment agreement or policy of NJR or any of its subsidiaries, which have continued after written notice
thereof from NJR or any of its subsidiaries, which violations are demonstrably willful and deliberate on Employee’s part and which result in material damage to NJR or any of its subsidiaries’ business or reputation.


  

	 	c.	 “Confidential Information” means all valuable and/or proprietary information (in oral, written, electronic or other forms) belonging to or
pertaining to NJR, its customers and vendors, that is not generally known or publicly available, and which would be useful to competitors of NJR or otherwise damaging to NJR if disclosed. Confidential Information may include, but is not necessarily
limited to: (i) the identity of NJR’s customers or potential customers, their purchasing histories, and the terms or proposed terms upon which NJR offers or may offer its products and services to such customers, (ii) the identity of
NJR’s vendors or potential vendors, and the terms or proposed terms upon which NJR may purchase products and services from such vendors, (iii) technology used by NJR to




  
 7 









	 	
provide its services, (iv) the terms and conditions upon which NJR employs its employees and independent contractors, (v) marketing and/or business plans and strategies,
(vi) financial reports and analyses regarding the revenues, expenses, profitability and operations of NJR, and (vii) information provided to NJR by customers and other third parties under a duty to maintain the confidentiality of such
information. Notwithstanding the foregoing, Confidential Information does not include information that: (i) has been voluntarily disclosed to the public by Company or Employer, except where such public disclosure has been made by Employee
without authorization from Company or Employer; (ii) has been independently developed and disclosed by others, or (iii) which has otherwise entered the public domain through lawful means. 


 

	 	d.	“Material Contact” means contact in person, by telephone, or by paper or electronic correspondence, or the supervision of those who have such conduct, and
which is done in furtherance of the business interests of NJR and within the last 36 months of Employee’s employment with NJR. 

  

	 	e.	“Restricted Period” means the period while Employee is employed by NJR and for 36 months following the termination or resignation of Employee from employment
with NJR. 

  

	 	f.	“Restricted Territory” consists of the following areas, to the extent such areas have been identified as applicable to the definition of the “Business of
NJR” above: 

 Natural Gas Distribution: The State of New Jersey. 

Energy Services: The State of New Jersey and the following Metropolitan Statistical Areas as defined by the U.S. Office of
Management and Budget as of the date of execution of this Agreement: (1) Houston-Sugar Land-Baytown, TX and (2) New York-Northern New Jersey - Long Island, NY-NJ-PA. 
 Clean Energy Ventures: The State of New Jersey. 
 Midstream Assets:
The States of New Jersey, New York and Pennsylvania. 
 Home Services: The State of New Jersey. 

  
 8