Document:

Exhibit104xTermsConditionsPerformanceBasedRestrictedStockRightsTSRandROC

Exhibit 10.4(x)

PERFORMANCE-BASED RESTRICTED STOCK RIGHTS (TSR and ROC)
ISSUED UNDER 
RYDER SYSTEM, INC. 2012 EQUITY AND INCENTIVE COMPENSATION PLAN

2013 TERMS AND CONDITIONS

The following terms and conditions apply to the 2013 performance-based restricted stock rights (the “PBRSRs”) granted by Ryder System, Inc. (the “Company”) under the Ryder System, Inc. 2012 Equity and Incentive Compensation Plan (the “Plan”), as specified in the Performance-Based Restricted Stock Rights Award Notification (the “Notification”) which references these terms and conditions.  Certain terms of the PBRSRs including the number of Shares underlying the PBRSRs, are set forth in the Notification.  The Compensation Committee of the Company’s Board of Directors (the “Committee”) shall administer the PBRSRs in accordance with the Plan.  Capitalized terms used herein and not defined shall have the meaning ascribed to such terms in the Plan or in the Notification.

		
	1.
	General.  Each PBRSR represents the right to receive one Share on a future date based upon the attainment of certain financial performance goals and continued employment, on the terms and conditions set forth herein, in the Notification and in the Plan, the applicable terms, conditions and other provisions of which are incorporated by reference herein (collectively, the “Award Documents”). A copy of the Plan and the documents that constitute the “Prospectus” for the Plan under the Securities Act of 1933, have been made available to the Participant prior to or along with delivery of the Notification.  In the event there is an express conflict between the provisions of the Plan and those set forth in any other Award Document, the terms and conditions of the Plan shall govern.   It is intended that the PBRSRs qualify as “performance-based compensation” for purposes of Section 162(m) of the Code.  

The terms and conditions contained herein may be amended by the Committee as permitted by the Plan; none of the terms and conditions of the PBRSRs may be amended or waived without the prior approval of the Committee.  Any amendment or waiver not approved by the Committee will be void and have no force or effect.  Any employee or officer of the Company who authorizes any such amendment or waiver without the prior approval of the Committee will be subject to disciplinary action up to and including forfeiture of his or her PBRSRs and/or termination of employment (unless otherwise prohibited by law).  All decisions and determinations made by the Committee relating to the PBRSRs shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under the Plan. 

		
	2.
	Financial Performance Goals.  

Fifty percent (50%) of the number of PBRSRs subject to an Award as set forth in the Notification (the “Target PBRSRs”) will accrue based on the Company’s Return on Capital and fifty percent (50%) of the number of PBRSRs subject to an Award as set forth in the Notification will accrue based on the Company’s TSR Rank (as defined in Section 2).  

Return on Capital

With respect to each ROC Performance Period, the Company’s ROC, as finally determined by the Committee pursuant to this Section 2, will be measured annually against a Maximum ROC, Target ROC and Threshold ROC, and the right to the PBRSRs will accrue, based on the following schedule:

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	Company’s ROC
	ROC Accrual Percentage

	Maximum ROC
	125%

	Target ROC
	100%

	Threshold ROC
	25%

	Below Threshold ROC
	0%

For purposes of the schedule above, by March 31 of each ROC Performance Period, the Committee will determine the Maximum ROC, Target ROC and Threshold ROC for such ROC Performance Period.  If the Company’s ROC falls between the measuring points on the foregoing schedule, the ROC Accrual Percentage for such ROC Performance Period will be determined proportionally between the measuring points. Any fractional PBRSR resulting from the vesting of the PBRSRs shall be rounded down to the nearest whole number.   

Once established, the Maximum ROC, Target TOC and Threshold ROC shall not be changed during the ROC Performance Period; provided, however, if the Committee determines that external changes or other unanticipated business conditions have materially affected the fairness of the applicable performance goals, then the appropriate adjustments may be made to the applicable performance goals (either up or down) during the ROC Performance Period.  

As soon as practicable after the end of the applicable ROC Performance Period, the Committee will review and approve the calculation of the Company’s ROC for purposes of determining the ROC Accrual Percentage.  The Company’s ROC will be calculated in accordance with generally accepted accounting principles (“GAAP”), provided that, the Committee may exclude or include the following items from actual results in determining performance (i) changes in accounting principle, standard or policy; (ii) changes in law or regulation; (iii) asset impairments; (iv) restructuring charges; (v) discontinued operations; and (vi)  non-operational or non-recurring items, in each case, other than those included in the Company’s Target ROC for the relevant ROC Performance Period.

TSR Rank

At the end of each TSR Performance Period, the Company TSR and the Total Shareholder Return of the companies included in the Comparator Group for that TSR Performance Period will be ranked from highest to lowest, with the Company’s rank being defined as the “Company’s TSR Rank”.  The right to the PBRSRs will accrue, based on the following schedule:

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	Company’s TSR Rank
	TSR Accrual Percentage

	1 – 10
	125%

	11
	118.75%

	12
	112.50%

	13
	106.25%

	14
	100%

	15
	85%

	16
	70%

	17
	55%

	18
	40%

	19
	25%

	20 – 28
	0%

If any company in the Comparator Group does not have a stock price that is quoted on a national securities exchange during the last ten (10) trading days of the applicable TSR Performance Period, such company will be deleted from the Comparator Group effective at the beginning of such TSR  Performance Period .  Notwithstanding the foregoing, if any company(ies) in the Comparator Group file for bankruptcy, become insolvent or dissolve prior to the end of the applicable TSR Performance Period, such company(ies) will be deemed to be ranked last among all companies in the Comparator Group.  If the number of companies in the Comparator Group changes, the Committee will, if deemed necessary, adjust the TSR Accrual Percentages forth above, consistent with the methodology used to determine the TSR Accrual Percentages set forth above.

Any fractional PBRSR resulting from the vesting of the PBRSRs shall be rounded down to the nearest whole number.   

		
	3.
	Delivery of Shares.   Provided that the Participant remained continuously employed through the end of the Three-Year Performance Period (but subject to Section 4 below), the number of Shares equal to the number of Accrued PBRSRs, net of the number of Shares necessary to satisfy applicable withholding taxes, will be transferred to an account held in the name of the Participant by the Company’s independent stock plan administrator and the Participant will receive notice of such transfer together with all relevant account details.  Such transfer will occur as soon as practicable after the Committee has determined the ROC Accrual Percentage for the Third ROC Performance Period and the TSR Accrual Percentage for the Third TSR Performance Period, provided that in no event shall the transfer be made after March 15, 2016, unless administratively impracticable to do so.

		
	4.
	Termination of PBRSRs; Forfeiture.  The PBRSRs will be cancelled upon the termination of the Participant’s employment with the Company and its Subsidiaries as described below.  

		
	(a)
	Resignation by the Participant or Termination by the Company or a Subsidiary:  Except as provided in subsection (b) below, upon any termination of a Participant’s employment with the Company and its Subsidiaries prior to the end of the Three-Year Performance Period, all outstanding PBRSRs, whether or not accrued, will be forfeited and the Participant will not have any right to delivery of Shares.  In addition, even if a Participant remains employed through the end of the Three-Year Performance Period, if the Participant’s employment is subsequently terminated by the Company or a Subsidiary for Cause, the right to any undelivered Shares shall be forfeited, and the Company shall have the right to reclaim and receive from the Participant any Shares delivered to the Participant pursuant to Section 3 within the one year period before the date of the Participant’s termination of employment, or to the extent 

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the Participant has transferred such Shares, the equivalent after-tax value thereof (as of the date the Shares were transferred by the Participant) in cash.

		
	(b)
	Termination by reason of Death, Disability or Retirement:  If a Participant’s employment terminates due to death, Disability or Retirement prior to the end of the Three-Year Performance Period, the Participant (or his or her Beneficiary, in the event of death) will be entitled to receive a pro-rata number of Shares that would have been delivered pursuant to Section 3 had the Participant remained employed through the end of the Three-Year Performance Period, based on the number of days during the Three-Year Performance Period that the Participant is considered to be an active employee as determined by the Company, payable at the time and manner specified in Section 3 above.    

		
	(c)
	Proscribed Activity:  If, during the Proscribed Period but prior to a Change of Control, the Participant engages in a Proscribed Activity, then the Company shall have the right to reclaim and receive from the Participant all Shares delivered to the Participant pursuant to Section 3 during the one year period immediately prior to, or at any time following, the date of the Participant’s termination of employment, or to the extent the Participant has transferred such Shares, the after-tax equivalent value thereof (as of the date the Shares were transferred by the Participant) in cash.

		
	5.
	Change of Control.  Notwithstanding anything contained herein to the contrary, unless otherwise determined by the Committee prior to a Change of Control which occurs during the Three-Year Performance Period, immediately prior to any such Change of Control, each Participant shall be entitled to delivery of a number of Shares equal to the sum of (a) with respect to each completed Performance Period, the number of Accrued PBRSRs at the time of the Change of Control, and (b) with respect to each uncompleted Performance Period, the Target PBRSRs.  Upon the occurrence of a Change of Control, all Shares subject to Accrued PBRSRs, will be delivered to the Participant in accordance with Section 3 above; provided that such Change of Control constitutes a change “in ownership” or “effective control” or a change in the “ownership of a substantial portion of the assets” of the Company under Section 409A of the Code and the rulings and regulations issued thereunder (any such transaction, a “409A Compliant COC”).  In the event that such Change of Control does not constitute a 409A Compliant COC (any such transaction, a “Non-409A Compliant COC”), to the extent that the Accrued PBRSRs are no longer subject to a substantial risk of forfeiture, each Accrued PBRSR will be converted into a right to receive a cash payment equal to the Fair Market Value of a Share on the date on which the Change of Control occurs.  Such cash payment will be distributed to the Participant on the earlier of the otherwise applicable distribution date set forth in Section 3 above and the Participant’s separation from service (as defined by Section 409A of the Code).  

To the extent (i) a Participant’s employment was terminated by the Company other than for Cause or Disability within the 12 months prior to the date on which the Change of Control occurred, (ii) during such 12 month period the Participant did not engage in a Proscribed Activity, and (iii) the Committee determines, in its sole and absolute discretion, that the decision related to such termination was made in contemplation of the Change of Control, then upon the Change of Control, the Participant will become entitled to a cash payment equal to the product of: the Fair Market Value of a Share on the date of the Change of Control and the number of Shares to which the Participant would otherwise have been entitled pursuant to the preceding paragraph on the date of the Change of Control if the Participant’s employment had continued until the date of the Change of Control.  In the event of a 409A Compliant COC, such cash payment will be made in a lump sum on the date on which the Change of Control occurs.  In the event a Non-409A Compliant COC 

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occurs, the cash payment will be distributed to the Participant on the first anniversary of the Participant’s separation from service.  

In the event of a Non-409A Compliant COC, then immediately prior to or in connection with the consummation of the Change of Control, the Company shall pay into one or more trust(s) (the “Trust(s)”) established between the Company and any financial institution with assets in excess of $100 million selected by the Company prior to the Change of Control, as trustee (the “Trustee”), such amounts as are required in order to fully pay the amounts payable pursuant to this Section 5 or as are otherwise required pursuant to the terms of the Trust(s), with payment to be made in cash or cash equivalents.  Thereafter, all amounts payable pursuant to this Section 5 shall be paid out of the Trust(s); provided, however, that the Company shall retain liability for and pay the applicable Participant any amounts or provide for such other benefits due the Participant under the Plan for which there are insufficient funds in the Trust(s), for which no funding of the Trust(s) is required, or in the event that the Trustee fails to make timely payment.

		
	6.
	Rights as a Shareholder; Dividend Equivalent Rights. The Participant will not have the rights of a shareholder of the Company with respect to Shares subject to the PBRSRs until such Shares are actually delivered to the Participant.  At the time Shares are delivered to the Participant pursuant to Section 3 or Section 5, as applicable, the Company will make a cash payment equal to the product of (i) the number of Accrued PBRSRs, and (ii) the aggregate dividends paid on a Share during the Three-Year Performance Period.

  

		
	7.
	U.S. Federal, State and Local Income Tax Withholding. The PBRSRs will not be taxable until the Shares are delivered.  The Shares when delivered will be taxable to the Participant at their then Fair Market Value as ordinary income, subject to wage-based withholding and reporting.  If the Participant is also receiving cash under any performance-based cash awards, the Company will first satisfy the withholding obligations for the PBRSRs by reducing the performance-based cash, in an amount sufficient to satisfy the withholding obligations.  If, after the Company has reduced all of the performance-based cash, there are still withholding tax obligations due, the Company will reduce the number of Shares to be delivered to the Participant in an amount sufficient to satisfy the balance of the withholding obligations due (based on the Fair Market Value of the Shares on the vesting date for the related PBRSRs).  The payment of cash dividend equivalents will be taxable to the Participant as ordinary income when paid, subject to wage-based withholding and reporting.  This Section 7 shall only apply with respect to the Company’s U.S. federal, state and local income tax withholding obligations.  The Company may satisfy any tax obligations it may have in any other jurisdiction in any manner it deems, in its sole and absolute discretion, to be necessary or appropriate.

		
	8.
	Statute of Limitations and Conflicts of Laws.  All rights of action by, or on behalf of the Company or by any shareholder against any past, present, or future member of the Board of Directors, officer, or employee of the Company arising out of or in connection with the PBRSRs or the Award Documents, must be brought within three years from the date of the act or omission in respect of which such right of action arises. The PBRSRs and the Award Documents shall be governed by the laws of the State of Florida, without giving effect to principles of conflict of laws, and construed accordingly.

		
	9.
	No Employment Right.  Neither the grant of the PBRSRs nor any action taken hereunder shall be construed as giving any employee or any Participant any right to be retained in the employ of the Company. The Company is under no obligation to grant PBRSRs hereunder.  Nothing contained in the Award Documents shall limit or affect in any manner or degree the normal and usual powers 

5

of management, exercised by the officers and the Board of Directors or committees thereof, to change the duties or the character of employment of any employee of the Company or to remove the individual from the employment of the Company at any time, all of which rights and powers are expressly reserved. 

		
	10.
	No Assignment.  A Participant’s rights and interest under the PBRSRs may not be assigned or transferred, except as otherwise provided herein, and any attempted assignment or transfer shall be null and void and shall extinguish, in the Company’s sole discretion, the Company’s obligation under the PBRSRs or the Award Documents.

		
	11.
	Unfunded Plan.  Any shares or other amounts owed under the PBRSRs shall be unfunded. The Company shall not be required to establish any special or separate fund, or to make any other segregation of assets, to assure delivery or payment of any earned amounts.

		
	12.
	Definitions.

		
	(a)
	“Accrued PBRSRs” means the sum of (i) the ROC Accrued PBRSRs for all ROC Performance Periods and (ii) the TSR Accrued PBRSRs for all TSR Performance Periods.

		
	(b)
	“Cause” shall have the meaning set forth in any individual, valid, written agreement between the Participant and the Company or any Subsidiary, or, if none exists, shall mean a determination of “Cause” under any applicable Severance Plan, as in effect on the date of grant of the PBRSRs.  Notwithstanding the foregoing, unless otherwise set forth in any individual, valid, written agreement between the Participant and the Company or any Subsidiary, during the one year period following a Change of Control, in no event shall a failure to meet performance expectations constitute Cause unless such failure was willful.

		
	(c)
	“Company TSR” means the Company’s Total Shareholder Return for a TSR Performance Period.

		
	(d)
	“Company’s Return on Capital” or “Company ROC” means the Company’s tax adjusted earnings from continuing operations, excluding interest, as a percentage of the sum of the Company’s average (i) debt, (ii) off-balance sheet debt and (iii) shareholders’ equity.    

		
	(e)
	 “Comparator Group” means the companies listed on Exhibit A hereto.

		
	(f)
	“Disability” means (i) the Participant 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; (ii) the Participant is, 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, receiving income replacement benefits for a period of not less than three months under an accident and health plan of the Company; or (iii) a determination by the Social Security Administration that a Participant is totally disabled.

		
	(g)
	“First ROC Performance Period” means the period from January 1, 2013 through December 31, 2013.  

		
	(h)
	“First TSR Performance Period” means the period from January 1, 2013 through December 31, 2013.  

6

		
	(i)
	“Performance Period” means an ROC Performance Period or a TSR Performance Period, as applicable.  

		
	(j)
	“Proscribed Activity” means any of the following: 

		
	 (i)
	the Participant’s breach of any written agreement between the Participant and the Company or any of its Subsidiaries, including any agreement relating to nondisclosure, noncompetition, nonsolicitation and/or nondisparagement;

		
	 (ii)
	the Participant’s direct or indirect unauthorized use or disclosure of confidential information or trade secrets of the Company or any Subsidiary, including, but not limited to, such matters as costs, profits, markets, sales, products, product lines, key personnel, pricing policies, operational methods, customers, customer requirements, suppliers, plans for future developments, and other business affairs and methods and other information not readily available to the public; 

		
	 (iii)
	the Participant’s direct or indirect engaging or becoming a partner, director, officer, principal, employee, consultant, investor, creditor or stockholder in/for any business, proprietorship, association, firm or corporation not owned or controlled by the Company or its Subsidiaries which is engaged or proposes to engage in a business competitive directly or indirectly with the business conducted by the Company or its Subsidiaries in any geographic area where such business of the Company or its Subsidiaries is conducted, provided that the Participant’s investment in 1% or less of the outstanding capital stock of any corporation whose stock is listed on a national securities exchange shall not be treated as a Proscribed Activity; 

		
	 (iv)
	the Participant’s direct or indirect, either on the Participant’s own account or for any person, firm or company, soliciting, interfering with or inducing, or attempting to induce, any employee of the Company or any of its Subsidiaries to leave his or her employment or to breach his or her employment agreement; 

		
	 (v)
	the Participant’s direct or indirect taking away, interfering with relations with, diverting or attempting to divert from the Company or any Subsidiary any business with any customer of the Company or any Subsidiary, including (A) any customer that has been solicited or serviced by the Company within one year prior to the date of termination of Participant’s employment with the Company and (B) any customer with which the Participant has had contact or association, or which was under the supervision of Participant, or the identity of which was learned by the Participant as a result of Participant’s employment with the Company; 

		
	 (vi)
	the Participant’s making of any remarks disparaging the conduct or character of the Company or any of its Subsidiaries, or their current or former agents, employees, officers, directors, successors or assigns; or 

		
	 (vii)
	the Participant’s failure to cooperate with the Company or any Subsidiary, for no additional compensation (other than reimbursement of expenses), in any litigation or administrative proceedings involving any matters with which the Participant was involved during the Participant’s employment with the Company or any Subsidiary.

7

		
	(k)
	“Proscribed Period” means the period beginning on the date of termination of Participant’s employment and ending on the later of (A) the one year anniversary of such termination date or (B) if the Participant is entitled to severance benefits in the form of salary continuation, the date on which salary continuation is no longer payable to the Participant.

		
	(l)
	“Retirement” means termination of employment for any reason (other than for Cause or by reason of death or Disability) upon or following attainment of age 55 and completion of 10 years of service, or upon or following attainment of age 65 without regard to years of service; provided that, Retirement shall not be deemed to occur unless such termination of service constitutes a separation from service, as defined by Section 409A of the Code.

		
	(m)
	“ROC Accrual Percentage” means the percentage of the PBRSRs that accrues at the end of each ROC Performance Period pursuant to Section 2 based on the Company's ROC. 

		
	(n)
	“ROC Accrued PBRSRs” means, for each ROC Performance Period, the ROC Accrual Percentage for each ROC Performance Period times one-third of the ROC PBRSR Award.

		
	(o)
	“ROC PBRSR Award” means fifty percent (50%) of the number of PBRSRs awarded as specified in the Notification.

		
	(p)
	“ROC Performance Period” means the First ROC Performance Period, the Second ROC Performance Period, or the Third ROC Performance Period, as applicable.

		
	(q)
	“Rolling Total Shareholder Return” means, for each of the ten (10) consecutive trading days immediately preceding the first day of the applicable TSR Performance Period, the percentage change from (i) the closing stock price on such trading date to (ii) the closing stock price on the corresponding trading date in the last ten (10) consecutive trading days of the applicable TSR Performance Period, assuming reinvestment of dividends on the ex-dividend date.

		
	(r)
	“Second ROC Performance Period” means the period from January 1, 2014 through December 31, 2014.

		
	(s)
	“Second TSR Performance Period” means the period from January 1, 2013 through December 31, 2014.

		
	(t)
	“Third ROC Performance Period” means the period from January 1, 2015 through December 31, 2015.

		
	(u)
	“Third TSR Performance Period” means the period from January 1, 2013 through December 31, 2015.

		
	(v)
	“Three-Year Performance Period” means the period from January 1, 2013 through December 31, 2015.

		
	(w)
	“Total Shareholder Return” means, for each TSR Performance Period, the sum of the ten (10) Rolling Total Shareholder Return calculations for the applicable TSR Performance Period, divided by ten (10).  

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	(x)
	“TSR Accrual Percentage” means the percentage of the PBRSRs that accrues at the end of each TSR Performance Period pursuant to Section 2 based on the Company’s TSR Percentile.

		
	(y)
	“TSR Accrued PBRSRs” means, for each TSR Performance Period, the TSR Accrual Percentage for each TSR Performance Period times one-third of the TSR PBRSR Award.

		
	(z)
	“TSR PBRSR Award” means fifty percent (50%) of the number of PBRSRs awarded as specified in the Notification.

		
	(aa)
	“TSR Performance Period” means the First TSR Performance Period, the Second TSR Performance Period, or the Third TSR Performance Period, as applicable. 

		
	13.
	Other Benefits.  No amount accrued or paid under the PBRSRs shall be deemed compensation for purposes of computing a Participant’s benefits under any retirement plan of the Company or its Subsidiaries, nor affect any benefits under any other benefit plan now or subsequently in effect under which the availability or amount of benefits is related to the Participant’s level of compensation.

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Exhibit A

	
			
	ARKANSAS BEST CORP

	AVIS BUDGET GROUP INC

	C. H. ROBINSON WORLDWIDE INC

	CELADON GROUP INC

	CON-WAY INC

	CSX CORPORATION

	EXPEDITORS INTERNATIONAL OF WASHINGTON, INC

	FEDEX CORPORATION

	FORWARD AIR CORP

	GATX CORPORATION

	HEARTLAND EXPRESS INC

	HERTZ GLOBAL HOLDINGS INC

	HUB GROUP INC

	J.B. HUNT TRANSPORT SERVICES INC

	KNIGHT TRANSPORTATION INC

	LANDSTAR SYSTEM INC

	OLD DOMINION FREIGHT LINE INC.

	PACER INTERNATIONAL INC

	PHH CORP

	SAIA INC

	SWIFT TRANSPORTATION CO

	TAL INTERNATIONAL GROUP INC

	TRINITY INDUSTRIES

	UNITED PARCEL SERVICE INC

	UNIVERSAL TRUCKLOAD SERVICES INC

	UTI WORLDWIDE INC

	WERNER ENTERPRISES INC

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	 

10PHILADELPHIA-6895005-v1-SJI___FIRST_AMENDMENT_TO_CREDIT_AGREEMENT

FIRST AMENDMENT TO CREDIT AGREEMENT
This First Amendment to Credit Agreement, dated as of the February 11, 2013 (this “First Amendment”), is entered into among SOUTH JERSEY INDUSTRIES, INC., a New Jersey corporation (the “Borrower”), the several lenders from time to time party hereto (the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as administrative agent for the Lenders (the “Administrative Agent”).
RECITALS
A.    The Borrower, the several lenders from time to time party thereto, and the Administrative Agent are parties to that certain Four-Year Revolving Credit Agreement dated as of April 29, 2011 (the “Existing Credit Agreement,” and as amended by this First Amendment and as may be further amended, restated, supplemented or otherwise modified from time to time hereafter, the “Credit Agreement”).  Capitalized terms used herein without definition shall have the meanings given to them in the Credit Agreement as they may be amended pursuant to this First Amendment.
B.    The Borrower and the Lenders have agreed to make certain amendments to the Credit Agreement on the terms and conditions set forth herein.
STATEMENT OF AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and covenants contained herein, the parties agree as follows:
ARTICLE I. 
AMENDMENTS TO CREDIT AGREEMENT
Section 1.01    Amendments to Section 1.01.
(a)    The following additional defined terms are hereby added to Section 1.01 of the Credit Agreement in appropriate alphabetical order:
(i)    “First Amendment” means the First Amendment to Credit Agreement, dated as of February 11, 2013, among the Borrower, the Lenders party thereto, and the Administrative Agent.
(ii)    “First Amendment Effective Date” has the meaning given to such term in Article II to the First Amendment.
(iii)    “First Amendment Fee Letter” means that certain fee letter dated as of January 22, 2013 by and among the Borrower, Wells Fargo Securities, LLC and the Administrative Agent.

(b)    The following defined terms are hereby amended and restated in their entirety as follows:
(i)    “Applicable Margin” means, for the applicable interest rate on Loans made to the Borrower, Facility Fees payable by the Borrower pursuant to Section 2.05(a), and Letter of Credit fees and commissions payable by the Borrower pursuant to Section 3.03(a), the rate per annum as set forth in the “pricing grid” below, determined by reference to the Debt Ratings:
	
					
	Pricing grid

	Tier
	 
Debt Ratings
	Facility Fee
	

Applicable Base Rate Margin
	Applicable LIBOR Margin or Applicable Letter of Credit Fee Margin

	I
	At least A/A2
	0.100%
	0%
	0.900%

	II
	Less than A/A2;
At least A-/A3
	0.125%
	0%
	1.000%

	III
	Less than A-/A3; at least BBB+/Baa1
	0.175%
	0.075%
	1.075%

	IV
	Less than BBB+/Baa1;
At least BBB/Baa2
	0.225%
	0.275%
	1.275%

	V
	Less than BBB/Baa2
	0.275%
	0.475%
	1.475%

The Applicable Margin shall be adjusted effective on the next Business Day following any change in the Borrower’s Debt Ratings. The Borrower shall notify the Administrative Agent in writing promptly after becoming aware of any change in its Debt Ratings.
(ii)    “Disclosure Documents” means the Borrower’s Annual Report on Form 10 K for the year ended December 31, 2011, Borrower’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and any Current Report on Form 8-K delivered to the Lenders at least three (3) Business Days prior to the First Amendment Effective Date.
(iii)    Clause (d) of the definition of “Excluded Taxes” is hereby amended and restated in its entirety as follows:  (d) any taxes imposed by Sections 1471 through 1474 of the Code (including any official interpretations thereof, collectively “FATCA”) on any “withholdable payment” payable to such recipient as a result of the failure of such recipient to satisfy the applicable requirements.
(iv)    “Stated Termination Date” means February 9, 2018, or such later date to which the Stated Termination Date may be extended pursuant to Section 2.18.

Section 1.02    Amendment to Section 2.05 of the Credit Agreement.  
Section 2.05(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:  “Commencing as of the First Amendment Effective Date, the Borrower hereby agrees to pay such other fees as are specified in the First Amendment Fee Letter.”
Section 1.03    Amendment to Section 2.17 of the Credit Agreement.  
Section 2.17(e) of the Credit Agreement is hereby amended by (a) deleting the phrase “whichever of the following is applicable” at the end of Section 2.17(e) (immediately before clause (i) of such Section) and replacing it with “any or all of the following which is applicable” and (b) amending and restating clause (i) of Section 2.17(e) in its entirety as follows:  “duly completed copies of Internal Revenue Service Forms W-8BEN or W-8BEN-E, claiming eligibility for benefits of an income tax treaty to which the United States is a party and/or allowing for payments to be made without withholding due to the applicability of FATCA,”.
Section 1.04    Amendment to Section 2.18 of the Credit Agreement.  
Section 2.18(a) of the Credit Agreement is hereby amended by (a) deleting the reference to “Closing Date” and replacing it with a reference to “First Amendment Effective Date” and (b) deleting the reference to “April 29, 2017” and replacing it with a reference to “February 7, 2020.”
Section 1.05    Amendment to Section 3.03 of the Credit Agreement.  
The first sentence of Section 3.03(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:  “Commencing as of the First Amendment Effective Date, in addition to the foregoing commission, the Borrower shall pay to the Administrative Agent, for the account of the Issuing Lender, a fronting fee with respect to each Letter of Credit issued on or after the First Amendment Effective Date in the amount and calculated in the manner set forth in the First Amendment Fee Letter (the “Fronting Fee”).”
Section 1.06    Amendment to Section 5.01 of the Credit Agreement.  
The references to “December 31, 2010” in clause (f) of Section 5.01 of the Credit Agreement are hereby changed to “December 31, 2011”.
Section 1.07    Amendment to Schedule I of the Credit Agreement. 
Schedule I of the Credit Agreement is hereby deleted in its entirety and replaced by “Schedule I” attached hereto as Annex A.
ARTICLE II.     
CONDITIONS OF EFFECTIVENESS
The obligation of the Lenders to execute and deliver this First Amendment on the date hereof (the “First Amendment Effective Date”) is subject to the conditions precedent that the 

Administrative Agent (and the Lenders, if applicable) shall have received on or before the First Amendment Effective Date, the following, each dated such date, in form and substance reasonably satisfactory to the Administrative Agent and the Lenders, with copies for each Lender:
(a)    First Amendment.  Receipt by the Administrative Agent of counterparts of this First Amendment, duly executed by the Borrower, the Administrative Agent, the Issuing Lender and each Lender;
(b)    Secretary’s Certificate.  Receipt by the Administrative Agent of (i) a certificate of the secretary or assistant secretary of the Borrower, dated the First Amendment Effective Date and certifying (A) that attached thereto is a true and complete copy of the certificate of incorporation and all amendments thereto of the Borrower, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of organization, (B) that attached thereto is a true and complete copy of the bylaws of the Borrower in effect on the First Amendment Effective Date and at all times since a date prior to the date of the resolutions described in clause (C) below, (C) that attached thereto is a true and complete copy of resolutions or consents, as applicable, duly adopted by the board of directors of the Borrower authorizing, as applicable, the execution, delivery and performance of this First Amendment and that such resolutions have not been modified, rescinded or amended and are in full force and effect, (D) that the organizational documents of the Borrower have not been amended since the date of the last amendment thereto shown on the certificate of good standing attached thereto, and (E) as to the incumbency and specimen signature of each officer of the Borrower executing this First Amendment and any other document delivered in connection herewith on its behalf; and (ii) a certificate of another officer as to the incumbency and specimen signature of such secretary or assistant secretary executing the certificate pursuant to (i) above;
(c)    Officer’s Certificate.  Receipt by the Administrative Agent of a certificate from the Borrower, executed on its behalf by the chief executive officer, chief financial officer or treasurer of the Borrower, in form reasonably satisfactory to the Administrative Agent, to the effect that, as of the First Amendment Effective Date, all representations and warranties of the Borrower contained in this First Amendment are true and correct in all material respects (except for representations and warranties qualified by materiality, which shall be true and correct); that the Borrower is not in violation or aware of any event that would have a Material Adverse Effect on the business or operation as reflected in the Disclosure Documents; that the Borrower is not in violation of any of the covenants contained in the Credit Agreement and the other Loan Documents in any material respect; that, after giving effect to the transactions contemplated by this First Amendment, no Default or Event of Default has occurred and is continuing; and that the Borrower has satisfied each of the conditions precedent set forth in this Article II;
(d)    Consents.  Receipt by the Administrative Agent of a written representation from the Borrower that (i) all governmental, shareholder, member, partner and third party consents and approvals necessary or, in the reasonable opinion of the Administrative Agent, desirable, in connection with the transactions contemplated hereby have been received and are in full force and effect and (ii) no condition or requirement of law exists which could reasonably be 

likely to restrain, prevent or impose any material adverse condition on the transactions contemplated hereby;
(e)    Good Standing Certificate.  Receipt by the Administrative Agent of a certificate of good standing for the Borrower, dated on or immediately prior to the First Amendment Effective Date, from the Secretary of State of the State of New Jersey;
(f)    Fees.  Receipt by the Administrative Agent and the Lenders of the fees set forth or referenced in the fee letter dated as of January 22, 2013 among the Borrower, Wells Fargo Securities LLC and the Administrative Agent and any other accrued and unpaid fees, expenses or commissions due hereunder (including, without limitation, legal fees and expenses of counsel to the Administrative Agent), and to any other Person such amount as may be due thereto in connection with the transactions contemplated hereby, including all taxes, fees and other charges related to the Loan Documents, in each case which are invoiced on or prior to the First Amendment Effective Date;
(g)    Note.    If requested by any Lender, a Note, payable to the order of such Lender, duly completed and executed by the Borrower;
(h)    Opinions.  Opinions of Cozen O’Connor, counsel to the Borrower as to such other matters as the Administrative Agent and the Lenders may reasonably request, addressed to the Administrative Agent and the Lenders in such form as is reasonably acceptable to the Administrative Agent; and
(i)    Other.  Receipt by the Administrative Agent of all other opinions, certificates and instruments in connection with the transactions contemplated by this First Amendment reasonably satisfactory in form and substance to the Required Lenders.
ARTICLE III.     
REPRESENTATIONS AND WARRANTIES 
The Borrower hereby represents and warrants to the Administrative Agent, the Issuing Lender and each Lender that (i) the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects on and as of the First Amendment Effective Date, both immediately before and after giving effect to this First Amendment (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty shall be true and correct in all material respects as of such date), (ii) this First Amendment has been duly authorized, executed and delivered by the Borrower and constitutes the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms and (iii) no Default shall have occurred and be continuing on the First Amendment Effective Date, both immediately before and after giving effect to this First Amendment.

ARTICLE IV.     
ACKNOWLEDGEMENT AND CONFIRMATION OF THE BORROWER
The Borrower hereby confirms and agrees that, after giving effect to this First Amendment, the Credit Agreement and the other Loan Documents remain in full force and effect and enforceable against it in accordance with their respective terms and shall not be discharged, diminished, limited or otherwise affected in any respect, and the amendments contained herein shall not, in any manner, be construed to constitute payment of, or impair, limit, cancel or extinguish, or constitute a novation in respect of, the Obligations of the Borrower evidenced by or arising under the Credit Agreement, the other Loan Documents, which shall not in any manner be impaired, limited, terminated, waived or released, but shall continue in full force and effect.  The Borrower represents and warrants to the Lenders that it has no knowledge of any claims, counterclaims, offsets, or defenses to or with respect to its obligations under the Loan Documents, or if the Borrower has any such claims, counterclaims, offsets, or defenses to the Loan Documents or any transaction related to the Loan Documents, the same are hereby waived, relinquished, and released in consideration of the execution of this First Amendment.  This acknowledgement and confirmation by the Borrower is made and delivered to induce the Administrative Agent and the Lenders to enter into this First Amendment, and the Borrower acknowledges that the Administrative Agent and the Lenders would not enter into this First Amendment in the absence of the acknowledgement and confirmation contained herein.
ARTICLE V.     
MISCELLANEOUS
Section 5.01    Governing Law.  
This First Amendment shall be governed by, and construed in accordance with, the laws of the state of New York.
Section 5.02    Full Force and Effect.  
Except as expressly amended hereby, the Credit Agreement shall continue in full force and effect in accordance with the provisions thereof on the date hereof.  As used in the Credit Agreement, “hereinafter,” “hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean the Credit Agreement after amendment by this First Amendment.  Any reference to the Credit Agreement or any of the other Loan Documents herein or in any such documents shall refer to the Credit Agreement and Loan Documents as amended hereby.  This First Amendment is limited as specified and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Credit Agreement except as expressly set forth herein.  This First Amendment shall constitute a Loan Document under the terms of the Credit Agreement.
Section 5.03    Expenses.  
The Borrower shall reimburse the Administrative Agent for all reasonable out-of-pocket expenses (including reasonable attorneys’ fees), paid or incurred by the Administrative Agent in 

connection with the preparation, negotiation, execution, delivery, syndication, amendment and modification of this First Amendment and the other Loan Documents delivered in connection herewith.
Section 5.04    Severability of Provisions.  
Any provision in this First Amendment that is held to be inoperative, unenforceable, or invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid without affecting the remaining provisions in that jurisdiction or the operation, enforceability, or validity of that provision in any other jurisdiction.
Section 5.05    Successors and Assigns.  
This First Amendment shall be binding upon, inure to the benefit of and be enforceable by the respective successors and permitted assigns of the parties hereto.  No assignment of any right or obligation arising under this First Amendment may be made except as would be permitted under Section 10.09 of the Credit Agreement and any purported assignment not in conformity with such provision shall be null and void.
Section 5.06    Headings.  
Section headings in this First Amendment are included herein for convenience of reference only and shall not constitute a part of this First Amendment for any other purpose.
Section 5.07    Counterparts.  
This First Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this First Amendment by telecopy or by electronic mail in a .pdf or similar file shall be effective as delivery of a manually executed counterpart of this First Amendment.  
[Signature pages to follow]

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent, as Issuing Lender, as Swingline Lender and as a Lender

By:     _______/s/ Allison Newman___________
Name:    Allison Newman
Title:    Director

SOUTH JERSEY INDUSTRIES, INC.

By:     _______/s/ Stephen H. Clark            
Name:    Stephen H. Clark
Title:    Vice President, Finance & Treasurer

BANK OF AMERICA, N.A.
as a Lender

By:         /s/ Kenneth G. Wood            
Name:    Kenneth G. Wood
Title:    Senior Vice President

JPMORGAN CHASE BANK, N.A.
as a Lender

By:         /s/ John E. Zur III            
Name:    John E. Zur III
Title:    Authorized Officer

PNC BANK, NATIONAL ASSOCIATION 
as a Lender

By:         /s/ Denise DiSimone            
Name:    Denise DiSimone
Title:    Senior Vice President

CITIZENS BANK OF PENNSYLVANIA
as a Lender

By:         /w/ Jonathan H. Sprogell        
Name:    Jonathan H. Sprogell
Title:    Senior Vice President

TD BANK, N.A.
as a Lender

By:         /s/ Steve Levi                
Name:    Steve Levi
Title:    Senior Vice President

CAPITAL ONE, NATIONAL ASSOCIATION
as a Lender

By:         /s/ Jeffrey Martorana
Name:    Jeffrey Martorana
Title:    Vice President

THE NORTHERN TRUST COMPANY
as a Lender

By:         /s/ Andrew D. Holtz            
Name:    Andrew D. Holtz
Title:    Vice President

ANNEX A

SCHEDULE I
LENDERS AND APPLICABLE LENDING OFFICES,
COMMITMENTS AND
INITIAL COMMITMENT PERCENTAGES
	
			
	Lender and Applicable
Lending Office

	Commitment
	Initial Commitment Percentage

	Wells Fargo Bank, National Association
1525 W WT Harris Boulevard
Charlotte, NC 28262
Mail Code: D1109-019
Attn: Syndication Agency Services
Telephone:  (704) 590-2706
Facsimile:   (704) 590-2790

With a copy of notices to:
301 S. College St., TW15
Charlotte, NC 28288
MAC: D1053-150
Attn: Allison Newman
Telephone: (704) 383-5260
Facsimile:  (704) 383-6647

	$66,250,000
	16.5625%

	Bank of America, N.A
1600 JFK Blvd., Suite 1100
Philadelphia, PA 19103
Attn: Kenneth G. Wood
Telephone:  (267) 675-0209
Facsimile:   (212) 598-8941

With a copy of notices to:
1600 JFK Blvd., Suite 1100
Philadelphia, PA 19103
Attn: Sandra Guerrieri
Telephone: (267) 675-0192
Facsimile:  (212) 909-8546

	$66,250,000
	16.5625%

	
			
	JPMorgan Chase Bank, N.A.
10 S. Dearborn Street, Floor 9
Chicago, IL 60603
Attn: John Zur
Telephone: (312) 732-1754
Facsimile:   (312) 732-1762

With a copy of notices to:
10 S. Dearborn Street, Floor 9
Chicago, IL 60603
Attn: Nancy Barwig
Telephone: (312) 732-1838
Facsimile:  (312) 732-1762

	$66,250,000
	16.5625%

	PNC Bank, National Association
1600 Market Street
Philadelphia, PA 19103
Attn: Denise D. Killen
Telephone:  (215) 585-5348
Facsimile:   (215) 585-6987

With a copy of notices to:
1600 Market Street
Philadelphia, PA 19103
Attn: Katie Mikula
Telephone: (412) 762-2457

	$66,250,000
	16.5625%

	Citizens Bank of Pennsylvania
3025 Chemical Rd., Suite 300
Plymouth Meeting, PA 19462
Attn: Jon H. Sprogell
Telephone:  (610) 941-8403
Facsimile:   (610) 941-4136

With a copy of notices to:
525 William Penn Place
Pittsburgh, PA 15219
Attn: Carl S. Tabacjar
Telephone: (412) 867-2432

	$55,000,000
	13.75%

	
			
	TD Bank, N.A.
31 West 52nd Street
New York, NY 10019
Attn: Vijay Prasad
Telephone: (212) 827-7795
Facsimile:  (212) 827-7232

With a copy of notices to:
2005 Market Street, 2nd Floor
Philadelphia, PA 19103
Attn: Gary Martz
Telephone: (215) 282-2799
Facsimile:  (215) 282-2476

	$45,000,000
	11.25%

	Capital One, N.A.
499 Thornall Street, 11th Floor
Edison, NJ 08837
Attn: Jeffrey Martorana
Telephone:  (732) 767-4111
Facsimile:   (732) 635-0996

With a copy of notices to:
499 Thornall Street, 11th Floor
Edison, NJ 08837
Attn: Priti Capoor-Savage
Telephone: (732) 321-4642
Facsimile:  (732) 635-0996

	$20,000,000
	5%

	The Northern Trust Company
50 South LaSalle Street
Chicago, IL 60603
Attn: Andrew Holtz
Telephone:  (312) 444-4243
Facsimile:   (312) 557-1425

With a copy of notices to:
50 South LaSalle Street
Chicago, IL 60603
Attn: Peter Hallan
Telephone: (312) 444-2434
Facsimile:  (312) 557-1425

	$15,000,000
	3.75%

	Total
	$400,000,000
	100%

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