Document:

Supplement Senior Officer Retirement Plan

 

Nicor Inc.

Form 10-K

Exhibit 10.28

NICOR INC. SUPPLEMENTAL SENIOR OFFICER

RETIREMENT PLAN

 

 

 

 

Mayer, Brown, Rowe & Maw

Chicago

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 
	 	 	 	Page
	 	 	 	

	SECTION 1 GENERAL
	 	 	1	 
	 	1.1 History, Purpose and Effective Date
	 	 	1	 
	 	1.2 Plan Administration
	 	 	1	 
	 	1.3 Source of Benefit Payments
	 	 	2	 
	 	1.4 Affiliate
	 	 	2	 
	 	1.5 Plan Year
	 	 	2	 
	 	1.6 Limitations on Provisions
	 	 	2	 
	 	1.7 Definitions, References
	 	 	2	 
	SECTION 2 PARTICIPATION
	 	 	2	 
	 	2.1 Eligibility to Participate
	 	 	2	 
	 	2.2 Restricted Participation
	 	 	3	 
	 	2.3 Plan Not Contract of Employment
	 	 	3	 
	 	2.4 Ineligible Employees
	 	 	3	 
	SECTION 3 CONTRIBUTIONS
	 	 	3	 
	 	3.1 Participant Account
	 	 	3	 
	 	3.2 Contributions
	 	 	3	 
	 	3.3 Contribution for 2001
	 	 	4	 
	 	3.4 Timing of Contributions
	 	 	4	 
	SECTION 4 PLAN ACCOUNTING
	 	 	5	 
	 	4.1 Allocation and Crediting of Contributions
	 	 	5	 
	 	4.2 Investment Options
	 	 	5	 
	 	4.3 Statement of Accounts
	 	 	6	 
	SECTION 5 VESTING AND FORFEITURE
	 	 	6	 
	 	5.1 Vesting of Accounts
	 	 	6	 
	 	5.2 Accelerated Vesting
	 	 	6	 
	 	5.3 Forfeitures
	 	 	6	 
	SECTION 6 PAYMENT OF PLAN BENEFITS
	 	 	6	 
	 	6.1 Distribution on Termination
	 	 	6	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 
	 	 	 	Page
	 	 	 	

	 	6.2 Method of Distribution
	 	 	6	 
	 	6.3 Distributions of Small Accounts
	 	 	7	 
	 	6.4 Acceleration of Payments
	 	 	7	 
	 	6.5 Distributions To Persons Under Disability
	 	 	7	 
	 	6.6 Beneficiary
	 	 	7	 
	 	6.7 Date of Termination
	 	 	8	 
	 	6.8 Pre-Termination Distributions
	 	 	8	 
	SECTION 7 CHANGE IN CONTROL
	 	 	8	 
	 	7.1 Accelerated Vesting and Distribution
	 	 	8	 
	 	7.2 Change in Control
	 	 	8	 
	SECTION 8 AMENDMENT AND TERMINATION
	 	 	11	 
	 	8.1 Amendment or Termination by Company
	 	 	11	 
	SECTION 9 CLAIMS PROCEDURES
	 	 	11	 
	 	9.1 Filing of Claim
	 	 	11	 
	 	9.2 Notice of Denial of Claim
	 	 	11	 
	 	9.3 Right of Review
	 	 	12	 
	 	9.4 Decision on Review
	 	 	12	 
	SECTION 10 MISCELLANEOUS
	 	 	12	 
	 	10.1 Nonalienation of Benefits
	 	 	12	 
	 	10.2 Offset of Benefits
	 	 	12	 
	 	10.3 Taxes and Withholding
	 	 	12	 
	 	10.4 Tax Consequences not Guaranteed
	 	 	12	 
	 	10.5 Gender and Number
	 	 	13	 
	 	10.6 Notices
	 	 	13	 
	 	10.7 Action by Employers
	 	 	13	 
	 	10.8 Applicable Laws
	 	 	13	 
	 	10.9 Successors
	 	 	13	 

-ii-  

 

NICOR, INC. SUPPLEMENTAL SENIOR OFFICER RETIREMENT PLAN

SECTION 1

General

     1.1 History, Purpose and Effective Date. Nicor, Inc. (the “Company”)
established the Nicor, Inc. Supplemental Senior Officer Retirement Plan (the
“Plan”) so that it can provide deferred compensation to or on behalf of its
eligible employees and those of its Affiliates which, with the consent of the
Company, adopt the Plan. The Plan is effective as of January 1, 2002 (the
“Effective Date”). The Company and any Affiliate of the Company which adopts
the Plan, with the consent of the Company, for the benefit of its eligible
employees are referred to below, collectively, as the “Employers” and
individually as an “Employer.” This Plan is intended to constitute a
non-qualified, unfunded plan for federal tax purposes and for purposes of Title
I of ERISA.

     1.2 Plan Administration. The authority to control and manage the
operation and administration of the Plan shall be vested in the committee (the
“Committee”) as may be appointed by the Board of Directors of the Company (the
“Board”) from time to time. The Committee shall initially be the Compensation
Committee of the Board until such time the Board determines otherwise. If the
Committee does not exist, or for any reason determined by the Board, the Board
may take action under the Plan that would otherwise be the responsibility of
the Committee. Subject to the terms of the Plan, the decision of the Committee
upon any question of fact, interpretation, definition or procedures relating to
the administration of the Plan shall be final and binding on all persons. The
responsibilities of the Committee shall include the following:

	 	(a)	 	Interpreting the provisions of the Plan in all particulars
and establishing, amending, rescinding, and publishing rules and
regulations for carrying out the Plan.
	 
	 	(b)	 	Selecting groups of employees or individual employees to be
eligible to participate in the Plan.
	 
	 	(c)	 	Reviewing and answering any denied claim for benefits that
has been appealed to the Committee under the provisions of Section
8.
	 
	 	(d)	 	Determining the Investment Options that will be available
under the Plan from time to time.
	 
	 	(e)	 	Making all other determinations that may be necessary or
advisable for the administration of the Plan.

The Committee may allocate all or any portion of the responsibilities and
powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any

1

 

person or persons selected by it. Any such delegation may be revoked by the
Committee at any time.

     1.3 Source of Benefit Payments. The amount of any benefit payable under
the Plan shall be paid from the general assets of the Employer with respect to
whose former employee the benefit is payable. If a Participant (as defined in
subsection 2.1) has been employed by more than one Employer, the portion of his
Plan benefit payable by each such Employer shall be equal to that portion of
his Account (as defined in subsection 3.1) proportionately attributable to the
contributions made by each Employer. An Employer’s obligation under the Plan
shall be reduced to the extent that any amounts due under the Plan are paid
from one or more trusts, the assets of which are subject to the claims of
general creditors of the Employer or any affiliate thereof; provided, however,
that, nothing contained in the Plan, and no action taken pursuant to its
provisions, shall create or be construed to create, or require the creation of,
a trust of any kind, or a fiduciary relationship between the Company or any
Affiliate and any employee or other person. To the extent any person acquires
a right to receive a payment from an Employer under the Plan, such right shall
be no greater than that of an unsecured general creditor of such Employer.
Nothing contained herein shall constitute a guarantee by any of the Employers
that the assets of such Employer will be sufficient to pay the benefits to any
Participant.

     1.4 Affiliate. The term “Affiliate” means any company during any period
in which it owns at least 50% of the voting power of all classes of stock of
the Company entitled to vote; and any company during any period in which at
least 50% of the voting power of all classes of stock of the company entitled
to vote is owned directly or indirectly by the Company or any other Affiliate.

     1.5 Plan Year. The “Plan Year” shall be the calendar year.

     1.6 Limitations on Provisions. The provisions of the Plan and the
benefits provided hereunder shall be limited as described herein.

     1.7 Definitions, References. Capitalized terms shall be defined as set
forth in the Plan.

SECTION 2

Participation

     2.1 Eligibility to Participate. For purposes of this Plan, the term
“Eligible Employee” shall mean an employee of an Employer hired on or after
January 1, 1998, who is individually designated by the Committee or who is a
member of a group designated by the Committee. Subject to the terms and
conditions of the Plan, an Eligible Employee shall become a “Participant” in
the Plan for any Plan Year in accordance with the following:

	 	(a)	 	All Eligible Employees who are employed as of the Effective
Date will enter the Plan as of the Effective Date; and

2

 

	 	(b)	 	Employees, other than those described in Section 2.1(a)
above, will enter the Plan on the first day of the calendar month
following qualification through attainment of a position designated
by the Committee as eligible to participate in the Plan or the
specific selection of such employee by the Committee.

An Eligible Employee may become a Participant under either of the foregoing
paragraphs. Once an Eligible Employee becomes a Participant in the Plan, he
shall remain a Participant so long as he has an Account balance under the Plan.

     2.2 Restricted Participation. Notwithstanding any other provision of the
Plan to the contrary, if the Committee determines that participation by one or
more Participants or Beneficiaries shall cause the Plan as applied to any
Employer to be subject to Part 2, 3 or 4 of Title I of the Employee Retirement
Income Security Act of 1974, as amended, the entire interest of such
Participant or Beneficiary under the Plan shall, in the discretion of the
Committee, be immediately paid to such Participant or Beneficiary, as
applicable, by the applicable Employer or Employers, or shall otherwise be
segregated from the Plan, and such Participant(s) or Beneficiary(ies) shall
cease to have any interest under the Plan.

     2.3 Plan Not Contract of Employment. The Plan does not constitute a
contract of employment, and participation in the Plan will not give any
employee the right to be retained in the employ of any Employer nor any right
or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

     2.4 Ineligible Employees. Should an employee cease to be an Eligible
Employee as defined in Section 2.1, eligibility for future Contributions under
the Plan will cease immediately. All other provisions in the Plan regarding
distribution forms and dates, notional investment elections and credits, and,
distribution elections shall remain unchanged.

SECTION 3

Contributions

     3.1 Participant Account. The Committee shall maintain an “Account,” and
such subaccounts as the Committee deems necessary or appropriate, in the name
of each person who is a Participant.

     3.2 Contributions. For each Plan Year, provided that the Participant’s
Date of Termination (as defined in Section 6.7), other than due to Retirement,
death or Disability (as defined in Section 5.2), has not occurred prior to the
last day of the Plan Year, an amount equal to the Annual Deferral Percentage
(defined below) times the Participant’s Eligible Compensation (defined below)
for such year shall be contributed to the Participant’s Account under the plan
(the “Contribution”). In the event that the Participant’s termination is due
to Retirement, death or Disability, the Participant will not be required to be
employed as of the last day of the Plan year in order to qualify for a
Contribution for such Plan Year. A Participant will be deemed to have
“Retired” if his or her Date of Termination occurs after the Participant has
both attained the

3

 

 age of 55 and has been employed by the Company, or an Affiliate, for at
least 10 years. For purposes of determining the Contribution:

	 	(a)	 	the term “Annual Deferral Percentage” shall be a percentage
amount determined in the sole discretion of the Committee and shall
initially be set at six percent (6%) until such time that the
Committee determines otherwise.
	 
	 	(b)	 	the term “Eligible Compensation” shall mean the Participant’s
total cash compensation received for the Plan Year, including Salary
and Bonus, and any other components of compensation selected by the
Committee from time to time; provided, however, that Eligible
Compensation shall only include the foregoing compensation that is
earned by the Participant during the period that the Participant was
an Eligible Employee for such Plan year;
	 
	 	(c)	 	the term “Salary,” means the regular basic cash remuneration
paid by an Employer to a Participant for such period by reason of
his employment with that Employer, excluding bonuses, overtime pay,
and all other kind of remuneration of any kind including, but not
limited to pre-paid salary increase advances and lump sum raise
payments, and including vacation pay; provided, however, that a
Participant’s Salary shall be determined without regard to
reductions to reflect contributions under a plan described in
section 125 of the Code and contributions under a cash or deferred
arrangement described in section 401(k) of the Code, or any amount
deferred under an unfunded, nonqualified plan maintained by the
Employer; and
	 
	 	(d)	 	the term “Bonus” means the gross annual bonus amount(s)
payable to a Participant from the Employer’s Annual Incentive Plan
or successor plan(s), if any, in effect for the Employer’s fiscal
year coinciding with the Plan Year (but payable after the end of the
Plan Year) otherwise payable in cash, and considered “wages” for
FICA and federal income tax withholding; provided, however, that a
Participant’s Bonus shall be determined without regard to any
reduction to reflect contributions under a plan described in section
125 of the Code or contributions under a cash or deferred
arrangement described in section 401(k) of the Code, or any amount
deferred under an unfunded, nonqualified plan maintained by the
Employer.

     3.3 Contribution for 2001. Following the Effective Date, but prior to the
end of the 2002 Plan Year, the Committee will make a Contribution for Eligible
Employees attributable to 2001 as if the Plan were in effect for such year.

     3.4 Timing of Contributions. Contributions will be made by the Company as
soon as practicable following the end of each Plan Year, but not later than the
last business day of March of such following year; provided, however, in the
event that a Participant’s Date of Termination occurs due to Retirement, death
or Disability, the Contribution with respect to such Participant

4

 

 for the Plan Year within which the Date of Termination occurs shall be
made prior to the Distribution Date (defined below).

SECTION 4

Plan Accounting

     4.1 Allocation and Crediting of Contributions. As of each Accounting Date
(defined below), the Committee shall adjust the Plan Account of each Plan
Participant in the following manner and order:

	 	(a)	 	first, charge to each Participant’s Account the amount of any
distributions that have been paid to or on behalf of the Participant
since the last preceding Accounting Date pursuant to Section 6 that
have not previously been charged;
	 
	 	(b)	 	next, each Participant’s Account shall be credited for
investment earnings or charged for investment losses that correspond
to the investment return earned by the Investment Option designated
by the Participant under Section 4.2; and
	 
	 	(c)	 	next, credit to his Account the amount of the Contributions,
if any, on behalf of the Participant since the last preceding
Accounting Date that have not previously been credited.

     4.2 Investment Options.

	 	(a)	 	The Committee will provide the Participants the opportunity
to select, at the time and in the manner determined by the Committee
from time to time, from one or more investment alternatives by which
the Participant’s benefits under the Plan shall be determined (the
“Investment Option”).
	 
	 	(b)	 	The designation of one or more Investment Options by a
Participant under this Section 4.2 shall be used solely to measure
the amounts of investment earnings or losses that will be credited
or charged to the Participant’s Account on the Employer’s books and
records, and the Employer shall not be required under the Plan to
establish any account in the similar Investment Option or to
purchase any Investment Option shares on the Participant’s behalf.
	 
	 	(c)	 	The Investment Option may be valued as of the close each day
the New York Stock Exchange is open for trading (“Accounting Date”).
	 
	 	(d)	 	A Participant may elect to revise the Investment Options with
respect to existing Account allocations or future Contributions at
any time by notification to the Committee in the prescribed manner.
The Committee, however, retains the right to review and restrict
transfer rights at any time.

5

 

	 	(e)	 	If a Participant fails to make a proper designation of
Investment Options, then his or her Accounts shall be deemed to be
invested in the default Investment Option designated by the
Committee from time to time in a uniform and nondiscriminatory
manner.

     4.3 Statement of Accounts. As soon as practicable after the last day of
each Plan year, the Committee will cause to be delivered to each Plan
Participant a statement of the balance of his Plan Account as of the Plan year
end.

SECTION 5

Vesting and Forfeiture

     5.1 Vesting of Accounts. A Participant shall be fully vested in the value
of his or her Account as of the earlier of the third anniversary of the date
the Participant first became an Eligible Employee or the date of such
Participant’s 60th birthday. The Committee shall determine the date under this
Section 5.1 on which a Participant becomes fully vested in his or her Account.

     5.2 Accelerated Vesting. In the event that the Participant’s Date of
Termination occurs due to the Participant’s death or permanent disability
(“Disability” shall be as defined in any applicable Employer-sponsored
long-term disability program or, in the absence of such program, as otherwise
defined by the Committee), such Participant’s Account shall become 100% vested
as of such termination.

     5.3 Forfeitures. A Participant who has an interest in his or her Account
that is less than 100% vested as of his or her Date of Termination shall
forfeit to the Employer the nonvested portion of such Account as of the date of
such Date of Termination.

SECTION 6

Payment of Plan Benefits

     6.1 Distribution on Termination. Subject to the following provisions of
this Section 6, as soon as practicable following the end of the Plan Year
within which the Date of Termination occurs, but not later than the last
business day of March of such following year (the “Distribution Date”), there
shall be payable to him or, in the event of his death, to his Beneficiary (as
defined in Section 6.6) an amount equal to the vested balance of his Account,
if any.

     6.2 Method of Distribution.

	 	(a)	 	Payment of Account balances shall commence on the
Distribution Date.

6

 

	 	(b)	 	Notwithstanding the foregoing, a Participant may elect, in
accordance with the procedures established by the Committee, to have
benefits distributed in one of the following forms:

	 	(i)	 	a single lump sum, or
	 
	 	(ii)	 	monthly, quarterly or annual installments over 5
or 10 years.

	 	(c)	 	A Participant may elect to revise the form of distribution on
any date that is not less than 12 months prior to the Distribution
Date.
	 
	 	(d)	 	In the event a Participant fails to elect a form of
distribution, such Participant’s Account shall be paid in annual
installments over 10 years, with the first installment being made as
of the Distribution Date; provided, however, if the termination is
due to the death of the Participant, such distribution shall be made
in a single lump sum.

     6.3 Distributions of Small Accounts. Notwithstanding the foregoing
provisions of this section 6, if the value of a Participant’s Account balance
does not exceed $5,000, determined as of the Participant’s Date of Termination
or the date of the Participant’s death, the Participant’s Account balances
shall be paid to the Participant or Beneficiary, as applicable, in a lump sum
as soon as practicable after the Participant’s Date of Termination or death, as
applicable.

     6.4 Acceleration of Payments. The Committee, in its sole discretion, may
accelerate or defer the date of payment of any benefits to the extent that it
determines such acceleration or deferral to be in the best interests of the
Employers or any Participant for any reason.

     6.5 Distributions To Persons Under Disability. In the event a Participant
or his Beneficiary is declared incompetent and a conservator or other person
legally charged with the care of his person or of his estate is appointed, any
benefit to which such Participant or Beneficiary is entitled under the Plan
shall be paid to such conservator or other person legally charged with the care
of his person or of his estate.

     6.6 Beneficiary. Each individual who becomes entitled to benefits under
the Plan on account of the death of a Participant shall be referred to as a
“Beneficiary” under the Plan and, in the event of the Participant’s death,
shall be entitled to receive the benefits in accordance with Section 6. A
Participant may designate his desired Beneficiary, or Beneficiaries, in the
event of his death, with such designation made in accordance with the
procedures established by the Committee. In the event that no such Beneficiary
designation has been properly made as of the date of death of the Participant,
or if the designated Beneficiary of a deceased Participant dies before him or
her or before complete payment of the Participant’s benefits, such benefits
shall be paid to the legal representative or representatives of the estate of
the last to die of the Participant and the designated Beneficiary.

7

 

     6.7 Date of Termination. A Participant’s “Date of Termination” means the
last day on which the Participant is employed by the Company or any Affiliate,
regardless of the reason for the termination of employment, subject to the
following:

	 	(a)	 	Transfers. A termination of employment shall not be deemed
to occur by reason of a transfer of a Participant between Employers.
A Participant’s employment shall not be considered terminated while
the Participant is on an approved leave of absence an Employer.
	 
	 	(b)	 	Transactions. If, as a result of a sale or other
transaction, a Participant’s employer ceases to be an Affiliate (and
the Participant’s employer is or becomes an entity that is separate
from the Company), and the Participant is not, at the end of the
30-day period following the transaction, employed by the Company or
another Employer, then (i) the Participant’s service and
compensation after such transaction shall be disregarded; and (ii)
for purposes of determining the Participant’s eligibility for
benefits, the Participant’s Date of Termination (and the
Participant’s status as an “Employee”) shall be determined based on
the date of such transaction.

     6.8 Pre-Termination Distributions. Subject to Section 6.4 and Section
7.1, distributions prior to the Participant’s Date of Termination are
prohibited under the Plan.

SECTION 7

Change in Control

     7.1 Accelerated Vesting and Distribution. Notwithstanding the foregoing,
including any distribution elections previously made by Participants, in the
event of a Change in Control (defined below), all Participant Account balances
shall become fully vested immediately prior to such Change in Control and the
Account balance of each Plan Participant shall be distributed in a lump sum as
of the date of such Change in Control, as soon as practicable after the date of
such Change in Control, but in no event later than 15 days after the occurrence
of such Change in Control. Payments under this subsection shall be in lieu of
any amounts that would otherwise be payable after the date as of which the
Participant’s Account balance is determined for purposes of payment under this
subsection.

     7.2 Change in Control. For purposes of the Plan, “Change in Control”
means:

	 	(a)	 	The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”))(a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of any shares of Common Stock of
the Company or any voting securities of the Company entitled to vote
generally in the election of directors if, as a result of such
acquisition, such person owns 20% or more of either (i) the
outstanding shares of common stock of the

8

 

	 	 	 	Company (the “Outstanding Company Common Stock”), or (ii) the
combined voting power of the outstanding voting securities of the
Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this subsection 7.2(a), the following
acquisitions shall not constitute a Change in Control: (A) any
acquisition by the Company, (B) any acquisition by an employee
benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company (a “Company
Plan”), or (C) any acquisition by any corporation pursuant to a
transaction which complies with subsections (c)(1), (c)(2), and
(c)(3) of this definition; provided further, that for purposes of
clause (A), if any Person (other than the Company or any Company
Plan) shall become the beneficial owner of 20% or more of the
Outstanding Company Common Stock or 20% or more of the Outstanding
Company Voting Securities by reason of an acquisition by the
Company, and such Person shall, after such acquisition by the
Company, become the beneficial owner of any additional shares of
the Outstanding Company Common Stock or any additional Outstanding
Company Voting Securities (other than pursuant to any dividend
reinvestment plan or arrangement maintained by the Company) and
such beneficial ownership is publicly announced, such additional
beneficial ownership shall constitute a Change in Control; or
	 
	 	(b)	 	Individuals who, as of the Effective Date, constitute the
Board (for purposes of this definition, the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Incumbent
Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for
election by the Company shareholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of
the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of
an actual or publicly threatened election contest (as such terms are
used in Rule 14a-11 promulgated under the Exchange Act) or other
actual or publicly threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board of Directors of the
Company; or
	 
	 	(c)	 	Consummation, including receipt of any necessary regulatory
approval, of (i) a reorganization, merger, consolidation, or other
business combination involving the Company or (ii) the sale or other
disposition of more than 50% of the operating assets of the Company
(determined on a consolidated basis), other than in connection with
a sale-leaseback or other arrangement resulting in the continued
utilization of such assets (or the operating products of such
assets) by the Company (any transaction described in part (i) or
(ii) being referred to as a “Corporate Transaction”); excluding,
however, a Corporate Transaction pursuant to which:

9

 

	 	(i)	 	all or substantially all of the individuals and
entities who are the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Corporate
Transaction beneficially own, directly or indirectly, more
than 60% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the ultimate
parent entity resulting from such Corporate Transaction
(including, without limitation, an entity which, as a result
of such transaction, owns the Company or all or substantially
all of the assets of the Company either directly or through
one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such
Corporate Transaction of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be;
	 
	 	(ii)	 	no Person (other than the Company, any Company
Plan or related trust, the corporation resulting from such
Corporate Transaction, and any Person which beneficially
owned, immediately prior to such Corporate Transaction,
directly or indirectly, 20% or more of the Outstanding Company
Common Stock or the Outstanding Company Voting Securities, as
the case may be) will beneficially own, directly or
indirectly, 20% or more of, respectively, the then outstanding
common stock of the ultimate parent entity resulting from such
Corporate Transaction or the combined voting power of the then
outstanding voting securities of such entity; and
	 
	 	(iii)	 	individuals who were members of the Incumbent
Board will constitute at least a majority of the members of
the board of directors of the ultimate parent entity resulting
from such Corporate Transaction; or

	 	(d)	 	A tender offer (for which a filing has been made with the
Securities and Exchange Commission (the “SEC”) which purports to
comply with the requirements of Section 14(d) of the Exchange Act
and the corresponding SEC rules) is made for the stock of the
Company, which has not been negotiated and approved by the Board,
provided that in case of a tender offer described in this subsection
(d), the Change in Control will be deemed to have occurred at the
first time during the offer period when the Person (as defined in
subsection (a) above) making the offer beneficially owns or has
accepted for payment stock of the Company with 20% or more of the
combined voting power of the then Outstanding Company Voting
Securities; or
	 
	 	(e)	 	Approval by the shareholders of the Company of a plan of
complete liquidation or dissolution of the Company.

10

 

	 	(f)	 	For purposes of this definition of Change in Control, (i) the
term “Company” shall mean Nicor Inc. and shall include any Successor
to Nicor Inc.; and (ii) the term “Successor to Nicor Inc.” shall
mean any corporation, partnership, joint venture or other entity
that succeeds to the interests of Nicor Inc. by means of a merger,
consolidation or other restructuring that does not constitute a
Change in Control under subsections (a), (c) or (d) above.

SECTION 8

Amendment and Termination

     8.1 Amendment or Termination by Company. The Company may, at any time,
amend or terminate the Plan; provided, however, that subject to the provisions
of the following sentence, neither an amendment nor a termination shall
adversely affect the rights of any Participant or Beneficiary under the Plan.
The Company, by Plan amendment or termination, may prospectively modify or
eliminate the right to have Contributions credited to the Account of any
Participant. Notwithstanding the foregoing provisions of this Section 8, the
Company may amend or terminate the Plan at any time, to take effect
retroactively or otherwise, as deemed necessary or advisable for purposes of
conforming the Plan to any present or future law, regulations or rulings
relating to plans of this or a similar nature.

SECTION 9

Claims Procedures

     9.1 Filing of Claim. Any Participant or beneficiary under the Plan may
file a written claim for a Plan benefit with the Committee or with a person
named by the Committee to receive claims under the Plan.

     9.2 Notice of Denial of Claim. In the event of a denial or limitation of
any benefit or payment due to or requested by any Participant or beneficiary
under the Plan (“claimant”), the claimant shall be given a written notification
containing specific reasons for the denial or limitation of the benefit. The
written notification shall contain specific reference to the pertinent Plan
provisions on which the denial or limitation of the benefit is based. In
addition, it shall contain a description of any other material or information
necessary for the claimant to perfect a claim, and an explanation of why such
material or information is necessary. The notification shall further provide
appropriate information as to the steps to be taken if the claimant wishes to
submit a claim for review. This written notification shall be given to a
claimant within 90 days after receipt of the claim by the Committee unless
special circumstances require an extension of time for process of the claim.
If such an extension of time for processing is required, written notice of the
extension shall be furnished to the claimant prior to the termination of said
90-day period, and such notice shall indicate the special circumstances which
make the postponement appropriate.

11

 

     9.3 Right of Review. In the event of a denial or limitation of the
claimant’s benefit, the claimant or the claimant’s duly authorized
representative shall be permitted to review pertinent documents and to submit
to the Committee issues and comments in writing. In addition, the claimant or
the claimant’s duly authorized representative may make a written request for a
full and fair review of the claim and its denial by the Committee; provided,
however, that such written request must be received by the Committee within 60
days after receipt by the claimant of written notification of the denial or
limitation of the claim. The 60-day requirement may be waived by the Committee
in appropriate cases.

     9.4 Decision on Review. A decision shall be rendered by the Committee
within 60 days after the receipt of the request for review, provided that where
special circumstances require an extension of time for processing the decision,
it may be postponed on written notice to the claimant (prior to the expiration
of the initial 60-day period) for an additional 60 days, but in no event shall
the decision be rendered more than 120 days after the receipt of such request
for review. Any decision by the Committee shall be furnished to the claimant
in writing and shall set forth the specific reasons for the decision and the
specific plan provisions on which the decision is based.

SECTION 10

Miscellaneous

     10.1 Nonalienation of Benefits. Except as may be required by law,
benefits payable under the Plan are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge,
garnishment, execution, or levy of any kind, whether voluntary or involuntary.
Any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
charge or otherwise dispose of any right to benefits under the Plan shall be
void. Neither the Company nor any Affiliate shall in any manner be liable for,
or subject to, the debts, contracts, liabilities, engagements or torts of any
person entitled to benefits under the Plan.

     10.2 Offset of Benefits. Notwithstanding Section 10.1, if a Participant
is indebted to the Company or any Affiliate at any time when payments are to be
made to the Participant under the provisions of the Plan, the Company shall
have the right to reduce the amount of payment to be made to the Participant
(or the Participant’s beneficiary) to the extent of such indebtedness. Any
election by the Company not to reduce such payment shall not constitute a
waiver of its claim for such indebtedness.

     10.3 Taxes and Withholding. For each Plan Year in which the Participant
defers a portion of Compensation under this Plan, the Employer will withhold
from the Participant’s non-deferred Compensation the Participant’s share of
FICA and other employment taxes as may be required by law. All distribution
under the Plan are subject to withholding of all applicable taxes.

     10.4 Tax Consequences not Guaranteed. The Employers do not warrant that
the Plan will have any particular tax consequence for Participants or their
beneficiaries and shall not be

12

 

 liable to them if tax consequences they anticipate do not actually occur.
None of the Employers, individually or in the aggregate, shall have any
obligations to indemnify a Participant or beneficiary for lost tax benefits (or
other damage or loss) in the event benefits are cancelled as permitted herein
or benefits are otherwise distributed prior to the dates set forth in Section
6.

     10.5 Gender and Number. Where the context admits, words in either gender
shall include the other gender, words in the singular shall include the plural
and the plural shall include the singular.

     10.6 Notices. Any notice or document required to be filed with the
Committee under the Plan will be properly filed if delivered or mailed by
registered mail, postage prepaid, to the Committee, in care of the Company, at
its principal executive offices. Any notice required under the Plan may be
waived by the person entitled to notice.

     10.7 Action by Employers. Any action required or permitted to be taken
under the Plan by any Employer which is a corporation shall be by resolution of
its Board of Directors, or by a person or persons authorized by its Board of
Directors. Any action required or permitted to be taken by any Employer which
is a partnership shall be by a general partner of such partnership or by a duly
authorized officer thereof.

     10.8 Applicable Laws. The Plan shall be construed and administered in
accordance with the laws of the State of Illinois to the extent that such laws
are not preempted by the laws of the United States of America

     10.9 Successors. The Plan shall be binding upon and inure to the benefit
of the Company and any successors of the Company. The Company will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of the Company
to expressly assume and agree to perform the Plan in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.

13Letter of Agreement, dated 12/27/02

 

     
Nicor Inc.

Form 10-K

Exhibit 10.29

	 	 	 
	December 16, 2002	 	
Confidential & Privileged

Via In-Person Delivery

Mr. Philip S. Cali

Executive Vice President

Nicor, Inc.

1844 Ferry Road

Naperville, Illinois 60563

Dear Phil:

This letter and its attachment A constitute the agreement between you and Nicor
concerning your retirement from Nicor.

As set forth in greater detail in the attachment, we agree that your last date
of employment by Nicor will be January 1, 2003, at which time you will retire.
Until January 1, 2003, Nicor will continue to pay your current salary and you
will continue to be eligible for employee benefits in accordance with
applicable benefit plans, policies and practices. As of January 1, 2003, your
qualification for benefits will be governed in accordance with the terms of
those plans, policies and practices, except as set forth in the attachment.

If you agree to the foregoing and the terms set forth in the attachment, please
indicate your agreement by signing and returning this letter and attachment to
me. Please do not hesitate to contact me if you would like further
clarification regarding any aspect of this agreement or its implementation. So
there is no misunderstanding, the agreement will be deemed withdrawn if for any
reason I do not receive a signed copy of the letter and the attachment on or
before January 10, 2003, unless otherwise agreed in writing by you and Nicor.

I wish you the best of luck in your retirement.

Sincerely,

/s/ Claudia J. Colalillo

Claudia J. Colalillo

Senior Vice President Human Resources

and Corporate Communications

	 	 
	Accepted and agreed to:
	 
	/s/ Philip S. Cali

Philip S. Cali
	 

	 	 	 
	Date 	12/27/2002

	

 

 

Attachment A

For purposes of this attachment A and the letter to which it is attached and
made part of, and unless otherwise noted, the term “Nicor” means Nicor, Inc.
and all of its subsidiaries and related entities (including but not limited to
Nicor Gas), and all of their predecessors, successors, assigns, trustees,
officers, directors, insurers, fiduciaries, agents and employees, and the term
“Mr. Cali” means Philip S. Cali, his spouse, family, heirs, beneficiaries,
executors, trustees, administrators and agents. Unless otherwise noted, the
term “agreement” means the letter and this attachment A.

In exchange for the promises made by Nicor and Mr. Cali in the agreement, Mr.
Cali and Nicor agree as follows:

	1.	 	Retirement. Mr. Cali agrees that his last date of employment by Nicor
will be January 1, 2003, at which time he will retire and his employment
will end. Until January 1, 2003, Nicor will continue to pay Mr. Cali’s
current salary, less applicable taxes and payroll deductions, in
accordance with its regular payroll procedures, and he will continue to be
eligible for employee benefits in accordance with applicable benefit
plans, policies and practices. Thereafter, Mr. Cali will no longer (a)
have any duties to perform for Nicor; (b) represent to third parties that
he is authorized to act on Nicor’s behalf; (c) have the authority to act
on Nicor’s behalf and, thus, will be without authority to bind or create
liability on behalf of Nicor; and (d) have the authority to incur any
expenses or obligations on Nicor’s behalf. As of January 1, 2003, Mr.
Cali’s eligibility for any and all benefits under applicable Nicor benefit
plans, policies and practices shall be governed in accordance with the
terms of those policies and plans, except as set forth in this agreement.
	 
	2.	 	Consideration. If Mr. Cali signs, dates and returns a copy of this
agreement on or before January 10, 2003, and he has not revoked the waiver
and release, then Nicor will pay him, on or before January 7, 2004 (but no
sooner than January 1, 2004) $305,000 via one lump-sum payment, less
applicable federal and state taxes and payroll deductions, and thereafter
will issue a tax form W-2 in the ordinary course of business. Mr. Cali
and Nicor agree that the payment is over and above that to which he
otherwise is entitled and is in exchange for his signing and fully
complying with this agreement.
	 
	3.	 	Waiver And Release Of All Claims. Mr. Cali waives and releases all known
and unknown, suspected and unsuspected, claims and causes of action of any
kind he has or may have from the beginning of time through and including
the date he signs the agreement against Nicor. The claims and causes of
action that Mr. Cali waives and releases includes but is not limited to
all claims and causes of action that are related to or any way grow out of
his employment with and separation from employment by Nicor, including but
not limited to any and all claims and causes of action that Nicor:

	•	 	has violated any type of written or unwritten contract, agreement,
understanding, policy, benefit, retirement and/or pension plan,
promise and/or covenant of any kind, including but not limited to any
covenant of good faith and fair dealing;
	 
	•	 	has discriminated against Mr. Cali on the basis of any characteristic
or trait protected under any law, including but not limited to race,
color, sex, national origin, ancestry, disability, religion,
citizenship, age (including claims under the Age Discrimination In
Employment Act of 1967 (ADEA)), or entitlement to benefits, in
violation of local, state or federal laws, constitutions, regulations,
ordinances or executive orders;

 

 

	•	 	has violated public policy or common law, including but not limited to
claims for: personal injury; invasion of privacy; retaliatory
discharge; negligent hiring, retention or supervision; defamation;
intentional or negligent infliction of emotional distress and/or
mental anguish; intentional interference with contract; negligence;
detrimental reliance; loss of consortium to Mr. Cali or any member of
his family; or promissory estoppel; and/or
	 
	•	 	is in any way obligated for any reason to pay Mr. Cali damages,
expenses, litigation costs (including attorneys’ fees), wages,
bonuses, severance pay, separation pay, termination pay, any type of
payments or benefits based on his separation from employment,
incentive pay, commissions, disability or any other employee benefits,
sick pay, compensatory damages, punitive damages, and/or interest.

	 	 	Excluded from this waiver and release is any claim or right which cannot be
waived by law, including all claims arising after the date of the agreement
and the right to file a charge with or participate in an investigation
conducted by an administrative agency. Mr. Cali is waiving, however, his
right to any monetary recovery if any administrative agency pursues any
claim or claims on his behalf. Also excluded from this waiver and release
are the following: (i) any action to enforce this agreement; (ii) any claim
for litigation costs (including attorneys’ fees) as incurred on his behalf
in any matter subject to coverage and/or indemnification under Nicor’s
director’s and officers liability insurance policy; and (iii) any claim for
accrued benefits under any Nicor-sponsored retirement plan. As to the
immediately preceding exclusion, Mr. Cali and Nicor agree that, upon the
termination of his employment, he will no longer accrue service within the
meaning of any Nicor-sponsored retirement plans and his eligibility for
benefits will be governed by applicable plan documents.
	 
	 	 	Mr. Cali also agrees never to bring any suit, complaint, proceeding,
grievance or action of any kind at law, in equity, or otherwise in any state
or federal court, or in any federal, state, county, or municipal
administrative agency, or before any other public or private tribunal,
against Nicor arising from his employment with Nicor, separation from
employment by Nicor, and/or any other occurrence to the date he signs the
agreement. Mr. Cali also waives any right to recover any relief as a result
of any proceeding brought on his behalf. The only exception to this
covenant not to sue is a claim under the ADEA that challenges the validity
of this waiver and release. If Mr. Cali violates this waiver and release by
suing Nicor, other than under the ADEA in a suit that challenges the
validity of this waiver and release, then he shall be liable for Nicor’s
actual attorneys’ fees and other litigation costs incurred in defending
against such a suit. Alternatively, if Mr. Cali sues Nicor in violation of
this waiver and release, Nicor can require him to return all monies and
other benefits paid to him under the agreement, minus $100.
	 
	 	 	Mr. Cali and Nicor also agree that: (a) this waiver and release is knowing
and voluntary and shall be given full force and effect; (b) he understand
the terms of this waiver and release; (c) the consideration and other
promises described and made in the agreement are over and above that to
which he otherwise is entitled and will not be provided unless he signs,
does not revoke and fully complies with the terms of this waiver and release
and the agreement; (d) Mr. Cali is hereby advised in writing to consult with
an attorney before he executes this waiver and release and agreement; (e)
this waiver and release has been individually negotiated between Mr. Cali
and Nicor and it is not part of a group exit incentive or other group
employment termination program; (f) Mr. Cali has until and including January
10, 2003 to consider this waiver and release; (g) after he signs the waiver
and release he has 7 days to revoke it and if he wants to revoke it, he must
do so in writing and deliver the

2

 

	 	 	writing to Claudia J. Colalillo, Vice President Human Resources and
Corporate Communications, no
later than 5:00 p.m. on the seventh day after he signs the agreement. If he
revokes the waiver and release, then the entire agreement will be of no
force or effect, but if he does not revoke it, he will receive the
consideration described in the agreement.
	 
	4.	 	Indemnification. Nicor agrees that Mr. Cali shall be entitled to
indemnification pursuant to the terms of the Nicor directors and officers
liability insurance policy issued by Associated General Electric & Gas
Insurance Services Limited in effect as of the date this agreement is
executed. Nicor also acknowledges and reaffirms its commitment to the
indemnification principles set forth in Article 10 of the Nicor, Inc.
Articles of Incorporation (relating to indemnification of directors,
officers and employees).
	 
	5.	 	Return Of Nicor Property And Information. As used in this section, the
term “company information” means confidential, proprietary and/or any
other information that belongs or relates to Nicor, including, without
limitation, information received from third parties, and all other
marketing, customer, potential customer, research and development,
technical, business or financial information. Except as otherwise agreed
to by Mr. Cali and Nicor, Mr. Cali agrees that no later than January 10,
2003, he will return to Nicor all company information and related
documents, reports, files (including all data stored in computer memory
and/or other storage media), memoranda and records; credit cards; cellular
telephones; portable computers and related equipment; card-key passes;
door and file keys; computer access codes; software and all other physical
property that he received, prepared or helped prepare in connection with
his employment by Nicor. Mr. Cali also agrees that he will not retain any
copies, duplicates, reproductions or excerpts of the above items. Mr.
Cali also agrees to keep all company information confidential and thus
will not disclose any company information to anyone unless he is compelled
to do so by court order, provided that he furnishes written notice to
Nicor’s General Counsel before disclosing the information.
	 
	6.	 	Non-Disparagement. Mr. Cali agrees that he shall not — directly or
indirectly, individually or in concert with others — interfere with,
attempt to interfere with, take any actions or make any communications
calculated or likely to have the effect of undermining, disparaging or
otherwise reflecting negatively upon Nicor, its officers, directors,
shareholders, employees, agents, operations, reputation, goodwill,
services, safety record, business practices and/or customers. Mr. Cali
also agrees that, except as required by the express terms of a lawful
subpoena or court order, he will never aid in any contemplated, threatened
or actual litigation of any kind against Nicor. Nicor agrees that its
officers shall not — directly or indirectly, individually or in concert
with others — interfere with, attempt to interfere with, take any actions
or make any communications calculated or likely to have the effect of
undermining, disparaging or otherwise reflecting negatively upon Mr. Cali.
This section does not preclude Mr. Cali or Nicor’s officers from
providing truthful statements if called to testify under oath in any legal
or administrative proceeding.
	 
	7.	 	Trade Secrets And Other Confidential Information. As used in this
section, “trade secrets-confidential information” means, without
limitation: customer lists of Nicor, Inc. and all related entities and
affiliates, including but not limited to Nicor Gas, Nicor Energy, LLC,
Nicor Enerchange, LLC, and EN Engineering (collectively, “Nicor” for
purposes of this section); pricing of products and/or services;
performance-based strategies; trading activities; marketing, technical
and/or business information related to Nicor’s marketing and/or business
plans; analyses, techniques or strategies concerning actual or potential
acquisitions and/or new ventures; development and/or introduction

3

 

	 	 	plans for products and/or services; unannounced products and/or services;
operation costs; research and development processes; data relating to research,
design, implementation and/or marketing of Nicor’s products and/or services;
the requirements and specifications of Nicor’s agents, vendors, suppliers,
trading partners, transporters, contractors and/or potential customers;
financial information; business plans; marketing plans and strategies;
quotations or proposals given to agents and/or customers and/or received from
suppliers; methods for developing and maintaining business relationships with
past, present or potential partners and/or customers; procedure manuals;
employee training and review manuals; confidential personnel data; and all
other information from which Nicor derives economic value and which is not
generally available to the public. Excluded from the definition of “trade
secrets-confidential information” is information that is generally known to the
public.
	 
	 	 	Mr. Cali agrees that, during his employment, he has had special access to trade
secrets-confidential information that constitute a valuable and unique asset to
Nicor. Mr. Cali agrees that the energy industry is highly competitive, that
Nicor has invested significant time and resources in developing trade
secrets-confidential information, and that Nicor would suffer a significant
economic loss if its trade secrets-confidential information were disclosed to
Nicor’s competitors and/or the general public. Mr. Cali also agrees that Nicor
does business throughout the Midwestern United States and that it has national
interests in protecting its trade secrets-confidential information and
safeguarding its customer and partner relationships. In light of the
foregoing, upon the end of his employment by Nicor, Mr. Cali agrees that he
shall hold all trade secrets-confidential information in confidence and that he
shall not make available or disclose in any way — directly or indirectly —
trade secrets-confidential information to any person (including current or
former Nicor employees), organization, newspaper or other media organization,
employer, firm, partnership, association, corporation or business entity or use
trade secrets-confidential information to his benefit or the benefit of
another, except: (a) with the prior written consent of Nicor’s General Counsel
or (b) as compelled to do so by court order, provided that he gives written
notice to Nicor’s General Counsel before disclosing the information. Mr. Cali
acknowledges that the provisions of this section are reasonable and not unduly
restrictive of his individual rights and he warrants that as of the date he
signs this agreement he has not breached any of the provisions of this section.
Mr. Cali also agrees that upon the end of his employment by Nicor, he will
continue to comply with all Nicor policy orders regarding or relating to
confidentiality and use of company assets. Finally, Mr. Cali agrees that Nicor
and all of its related entities are this section’s intended beneficiaries and
that Nicor and all of its related entities are entitled to enforce this section
as if they were signatories to it.
	 
	8.	 	Change In Control Agreement. Mr. Cali agrees that the Change in Control
Agreement entered into between him and Nicor on or about June 2, 2000 will
be null and void as of January 1, 2003, and thus all rights Mr. Cali has
or may have to any change in control benefits or rights of any kind will
be irrevocably cancelled as of that date.
	 
	9.	 	Cooperation. Mr. Cali agrees after January 1, 2003 he will make himself
available to Nicor for up to 100 hours to provide reasonable cooperation
with respect to areas and matters in which he was involved during his
employment, including any threatened or actual litigation concerning Nicor
(including, without limitation, attendance at out-of-town proceedings for
which Nicor may require travel), and to provide to Nicor, if requested,
information and counsel relating to Nicor business matters. Nicor will
reimburse Mr. Cali for the actual expenses he incurs, including reasonable
travel expenses, as a result of compliance with this provision, provided
he submits proper documentation of the expenses he incurs as reasonably
required by Nicor.

4

 

	10.	 	Non-Admission And Tax Liability. Mr. Cali agrees that this agreement
does not constitute and shall not be construed, interpreted, or treated in
any respect as an admission of any liability or wrongdoing by Nicor. Mr.
Cali further agrees that this agreement shall not be admissible in any
proceeding without Nicor’s written consent, except for a proceeding
instituted by Mr. Cali or Nicor alleging a breach of this agreement, any
proceeding in which a defense is asserted based on any provisions of this
agreement, or as otherwise required by law. Mr. Cali also agrees that, if
any taxing body determines that amounts should have been withheld from the
payments provided for in this agreement, he acknowledges and assumes all
responsibility for the payment of all such taxes and agrees to indemnify
and hold Nicor harmless for the payment of any such taxes, the failure to
withhold, and any related interest or penalties.
	 
	11.	 	Choice Of Law, Interpretation And Severability. Mr. Cali and Nicor agree
that this agreement shall be governed by Illinois law. Mr. Cali and Nicor
agree that this agreement shall not be construed against any party on
account of authorship and, if a court finds any part of this agreement to
be illegal or invalid, the illegal or invalid portion of the agreement
shall be severed and the rest of the agreement will be enforceable.
	 
	12.	 	Remedies. Mr. Cali agrees that the exact amount of actual or potential
damages to Nicor resulting from any breach of this agreement is inherently
difficult to determine with precision and that any breach will result in
immediate and irreparable harm to Nicor’s business and goodwill, for which
Nicor will have no adequate remedy at law. Mr. Cali agrees that if he
breaches any of the provisions of this agreement, Nicor shall be entitled
to injunctive relief, its actual attorneys’ fees and costs associated with
such action, and all such further relief as a court of competent
jurisdiction may deem just and proper.
	 
	13.	 	General Matters. Mr. Cali also agrees that:

	•	 	He has not suffered any on-the-job injury for which he has not already filed a claim.
	 
	•	 	He is entering into this agreement knowingly and voluntarily and with full knowledge of its significance, and he has not
been coerced, threatened, intimidated into signing this agreement.
	 
	•	 	Nicor may assign this agreement. This agreement shall inure to the benefit of Nicor and its successors and assigns and any
person or entity acquiring (whether by merger, consolidation, purchase of assets or otherwise) all or substantially all of
Nicor’s assets and/or business.
	 
	•	 	This agreement may be executed in two or more facsimiled counterparts, each of which shall be equivalent to an original,
but which collectively shall constitute one agreement.
	 
	•	 	This agreement sets forth the entire agreement between Mr. Cali and Nicor regarding the end of his employment and
supersedes any written or oral understanding, promise or agreement that is not referred to and incorporated in this
agreement. This agreement may be changed only by a writing signed by Mr. Cali and Nicor.

5

 

	 	 	 
	AGREED AND ACCEPTED:	 	 
	 
	/s/ Philip S. Cali

Philip S. Cali	 	
/s/ Claudia J. Colalillo

Claudia J. Colalillo

Senior Vice President

Human Resources and

Corporate Communications

	 	 	 	 	 	 	 
	Date	 	
12/27/2002

	 	Date
	 	12/27/02

6

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