Document:

exhibit1001restrictedstock.htm

    Nicor
Inc.

    Form
8-K

    Exhibit
10.01

    

    

    RESTRICTED
STOCK UNIT AGREEMENT

    NICOR INC. 2006 LONG-TERM
INCENTIVE PLAN

     

    THIS
AGREEMENT, entered into as of the 26th day of
March 2009 (the “Agreement Date”), by and between Russ M. Strobel (the
“Employee”), and Nicor Inc., an Illinois corporation (the
“Company”).

     

    WITNESSETH
THAT:

     

    WHEREAS,
the Company maintains the Nicor Inc. 2006 Long-Term Incentive Plan (the “Plan”),
which is incorporated into and forms a part of this Agreement for the benefit of
key executive and management employees of the Company and a Related Company;
and

     

    WHEREAS,
the Employee has been selected by the Compensation Committee of the Board of
Directors of the Company (the “Committee”) to receive an award of Restricted
Stock Units pursuant to Section 4.4 of the Plan and as provided
herein;

     

    NOW,
THEREFORE, IT IS AGREED, by and between the Company and the Employee as
follows:

     

    1.            
Award.  Subject
to the terms of this Agreement and the Plan, the Employee is hereby awarded the
right to receive 21,010 shares of Stock (the “Restricted Stock Units”) subject
to vesting as provided in Paragraph 4, the delivery of which shares of Stock is
deferred until the earliest of:

     

    (a)           the
Employee’s death or disability (within the meaning of Section 409A of the
Code);

     

    (b)           a
Change in Control; or

     

    (c)           the
six-month anniversary following Employee’s separation from service (within the
meaning of Section 409A of the Code) from the Company and all Related
Companies.

     

    2.            
Limit on
Alienation.  Restricted Stock Units may not be sold, assigned,
transferred (except as permitted under Paragraph 6), pledged or otherwise
encumbered.

     

    3.            
Dividend
Equivalents.  The Employee shall be entitled to receive a cash
payment equal to the amount of dividends which otherwise would have been paid on
the shares of Restricted Stock Units as if such shares were issued and
outstanding (the “Dividend Equivalents”) at the same time and manner as
dividends are paid on shares of Stock.  Employee’s rights to Dividend
Equivalents shall cease on the earlier of (a) the date on which the Employee has
forfeited the Restricted Stock Units, or (b) the date the actual shares of Stock
are delivered as provided in Paragraph 1.

     

    4.            
Vesting.  The
Employee shall vest in full in the Restricted Stock Units on the earlier of (a)
the fourth anniversary of the Agreement Date; (b) the date on which a Change in
Control occurs; (c) the date of the Employee’s death after the first anniversary

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    of the
Agreement Date; (d) the date on which the Employee is determined to have become
subject to a Disability after the first anniversary of the Agreement Date; or
(e) the Employee’s Retirement after the first anniversary of the Agreement
Date.  If the Employee’s employment with the Company and all Related
Companies terminates prior to vesting in the Restricted Stock Units, he shall
forfeit the Restricted Stock Units and his right to receive the actual shares of
Stock subject thereto.

     

    For
purposes of this Agreement, the term "Disability" means the inability of the
Employee, by reason of a medically determinable physical or mental impairment,
to engage in any substantial gainful activity, which condition, in the opinion
of a physician selected by the Committee, is expected to result in death or can
be expected to last for a continuous period of not less than 12
months.  For purposes of this Agreement, “Retirement” means the date
the Employee has attained at least (i) age 65, or (ii) age 55 and has at least
10 years of employment with the Company or any Related Companies.

     

    5.            
Heirs and
Successors.  This Agreement shall be binding upon, and inure to
the benefit of, the Company and its successors and assigns, and upon any person
acquiring, whether by merger, consolidation, purchase of assets or otherwise,
all or substantially all of the Company’s assets and
business.  Subject to the terms of the Plan, any benefits payable to
the Employee under this Agreement that are not paid at the time of the
Employee’s death shall be paid to the beneficiary designated by the Employee in
writing filed with the Committee in such form and at such time as the Committee
shall require.  If the Employee fails to designate a beneficiary, or
if the designated beneficiary of the Employee dies before the Employee or before
complete payment of the amounts distributable under this Agreement, the
Committee shall, in its discretion, direct that amounts to be paid under this
Agreement be paid to:

     

    (a)           one
or more of the Employee’s relatives by blood, adoption or marriage and in such
proportion as the Committee decides; or

     

    (b)           the
legal representative or representatives of the estate of the last to die of the
Employee and his beneficiary.

     

    6.            
Transferability.  Restricted
Stock Units awarded under this Agreement are not transferable except as
designated by the Employee by will or by the laws of descent and
distribution.  Notwithstanding the foregoing, the Committee may permit
the Restricted Stock Units awarded under this Agreement to be transferred by the
Employee for no consideration to or for the benefit of the Employee’s Immediate
Family (including a trust for the benefit of the Employee’s Immediate Family or
to a partnership for members of the Employee’s Immediate Family), subject to
such limits as the Committee may establish, and the transferee shall remain
subject to all terms and conditions applicable to such award prior to such
transfer.

     

    7.        
    Employment and Shareholder
Status.  This Agreement does not constitute a contract of
employment, and does not confer on the Employee the right to be retained in the
employ of the Company or any Related Company.  Except as otherwise
provided in this Agreement, the Employee shall not be deemed to be a holder of
any shares of Stock

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    pursuant
to the Restricted Stock Units until the date of the issuance of a certificate to
him of the actual shares of Stock subject to such Restricted Stock
Units.  Except for Dividend Equivalents, the Employee shall not have
any rights to dividends or any other rights of a shareholder with respect to the
shares of Stock covered by the Restricted Stock Units until such shares of Stock
have been issued to the Employee.

     

    8.       
     Withholding.  The
Company may require that the Employee pay to the Company, or the Company may
otherwise withhold, at the time of delivery of the shares of Stock pursuant to
the Restricted Stock Units, any such amount as is required by law or regulation
to be withheld for federal, state or local income tax or any other taxes
incurred by reason of such payment.  If the tax obligation arises
during a period in which the Employee is either an officer of the Company
subject to Section 16(a) of the Exchange Act or prohibited from trading under
any policy of the Company or by reason of the Exchange Act, then the tax
withholding obligation shall automatically be satisfied by the Company
withholding in shares of Stock otherwise deliverable under the Restricted Stock
Units, and by signing this Agreement the Employee authorizes the Company to so
withhold.

     

    9.          
  Unfunded
Promise.  The Employee’s right to receive payment of any
amounts under this Agreement shall be an unfunded entitlement and shall be an
unsecured claim against the general assets of the Company.

     

    10.           Adjustment to Number of
Shares Subject to Agreement.  In the event of any change in the
outstanding shares of Stock by reason of any stock dividend, split, spin-off,
recapitalization, merger, consolidation, combination, exchange of shares or
other similar change, the terms of this Agreement and the number of Restricted
Stock Units and this Agreement shall be adjusted in the manner specified in
Section 6.4 of the Plan.

     

    11.           Definitions.  Except
where the context clearly implies or indicates the contrary, a word, term, or
phrase used in the Plan is similarly used in this Agreement.

     

    12.           Administration.  The
authority to manage and control the operation and administration of this
Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the
Plan.  Any interpretation of the Agreement by the Committee and any
decision made by it with respect to the Agreement is final and binding on all
persons.

     

    13.           Plan
Governs.  Notwithstanding anything in this Agreement to the
contrary, the terms of this Agreement shall be subject to the terms of the Plan,
a copy of which may be obtained by the Employee from the office of the Secretary
of the Company.  In the event of a conflict between any terms of this
Agreement and the terms of the Plan, the terms of the Plan shall
govern.

     

    14.           Amendment.  This
Agreement may be amended by written agreement of the Employee and the Company,
without the consent of any other person.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Employee has hereunto set his hand, and the Company has
caused these presents to be executed in its name and on its behalf, and its
corporate seal to be affixed hereto, all as of the Agreement Date.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	 	 	 	/s/
      RUSS M. STROBEL 	 
	 	 	 	Russ
      M.  Strobel	 
	 	 	 	 	 	 
	 	 	 	NICOR
      INC. 	 
	 	 	 	 	 	 
	 	
                                                             

                                                          	 	By:
       	/s/
      CLAUDIA COLALILLO	 
	 	 	 	 	Senior Vice
      President Human Resources	 
	 	 	 	 	
                                                            and
      Corporate Communications

                                                          	 
	 	 	 	 	
                                                             

                                                          	 
	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 
	/s/ NEIL J.
      MALONEY 	 	 	 	 
	Its:  
      Assistant Secretaryexhibit1002perfcashagreement.htm

    
      Nicor
Inc.

      Form
8-K

      Exhibit
10.02

      PERFORMANCE
CASH UNIT AGREEMENT

      NICOR INC. 2006 LONG-TERM
INCENTIVE PLAN

      

      THIS
AGREEMENT, entered into as of [Agreement Date] (the "Agreement Date"), by and
between [First_Name] [Middle_Initial] [Last_Name] (the "Employee"), and Nicor
Inc., an Illinois corporation (the "Company");

      WITNESSETH
THAT:

      

      WHEREAS, the Company maintains the
Nicor Inc. [insert program year] Long-Term Incentive Program (the "Program"),
which is part of the Nicor Inc. 2006 Long-Term Incentive Plan (the “Plan”) and
which is incorporated into and forms a part of this Agreement, for the benefit
of key executive and management employees of the Company and any Related
Company; and

      

      WHEREAS,
the Employee has been selected by the Compensation Committee of the Board of
Directors of the Company (the "Committee") to receive a Performance Cash Unit
award;

      

      NOW,
THEREFORE, IT IS AGREED, by and between the Company and the Employee, as
follows:

      

      1.  Award.  The
Employee is hereby awarded [insert number of units] Performance Cash Units,
effective as of the Agreement Date.

      

      2.  Amount of Payment.
 Subject to the provisions of this Agreement, the Program and the Plan, the
Company shall distribute to the Employee, for each Performance Cash Unit awarded
under this Agreement, an amount equal to one dollar times the product of, (1)
the number of Performance Cash Units MULTIPLIED BY (2) the Total Shareholder
Return Performance Multiplier (as defined below) for the Performance Period (as
defined below).

      

      3.  Time of
Payment.  Amounts due under paragraph 2 with respect to
Performance Cash Units shall be paid as a lump sum cash payment as soon as
practicable after the end of the Performance Period; provided, however, if
payment is not made by 2 1⁄2 months following the end of the Performance Period,
payment will be made no later than December 31 of the calendar year following
the end of the Performance Period.

      

      4. 
Total Shareholder
Return.  For purposes of this Agreement, the Total Shareholder
Return (TSR) is defined as the three-year total shareholder return of the
Company calculated with dividends reinvested, for all shares of common stock of
the Company (“Company Stock”) reported for the New York Stock Exchange -
Composite Transactions ending on the last day of the Performance Period (or, if
Company Stock is not traded on that date, on the next preceding date on which
Company Stock is traded).  For purposes of calculating the TSR: (i)
the starting stock price will be an average of the closing prices for the 20
trading days ending on December 31, [insert last day preceding performance
period] and (ii) the ending stock price will be an average of the closing prices
for the 20 trading days ending on December 31,[insert last day of performance
period].

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      5.  Performance
Period.  For purposes of this Agreement, the Performance Period
shall be the period beginning January 1, [insert first day of performance
period], and ending December 31,[insert last day of performance
period].

      

      6. 
Performance
Multipliers.  For purposes of this Agreement, the term "Total
Shareholder
Return Performance Multiplier" for the Performance Period shall be determined in
accordance with Exhibit A to this Agreement.

      

      7.  Vesting.  The
Employee shall be vested in and entitled to payment of benefits under this
Agreement only if the requirements of either paragraph (a) or paragraph (b) next
below are satisfied:

      

      
        
          	
                   

                	
                  (a)

                	
                  The
      Employee is continuously employed by the Company and the Related Companies
      during the period beginning on the Agreement Date and ending on December
      31,[insert last day of performance
  period].

                

        

      

      

      
        
          
            
              
                	 	
                        (b)

                      	
                        The
      Employee is continuously employed by the Company and the Related Companies
      through the first anniversary of the Agreement Date, and such employment
      terminates before January 1, [insert first day following performance
      period]by reason of his Retirement (as defined below) or
      death.

                      

              

            

          

        

      

      

      The
Employee shall not be vested in or entitled to payment of benefits under this
Agreement unless the requirements of paragraph (a) or paragraph (b) next above
are satisfied.  Nothing in this paragraph 7 shall be deemed to
increase the amount of benefits (if any) payable under this Agreement, as
determined without regard to this paragraph 7.

      

      8.  Heirs and
Successors.  This Agreement shall be binding upon, and inure to
the benefit of, the Company and its successors and assigns, and upon any person
acquiring, whether by merger, consolidation, purchase of assets or otherwise,
all or substantially all of the Company's assets and
business.  Subject to the terms of the Plan, any benefits payable to
the Employee under this Agreement that are not paid at the time of the
Employee's death shall be paid at the time and in the form determined in
accordance with the provisions of this Agreement, to the beneficiary designated
by the Employee in writing filed with the Committee in such form and at such
time as the Committee shall require.  If a deceased Employee fails to
designate a beneficiary, or if the designated beneficiary of the deceased
Employee dies before the Employee or before complete payment of the amounts
distributable under this Agreement, the Committee shall, in its discretion,
direct that amounts to be paid under this Agreement be paid to:

      

      
        
          
            	 	
                    (a)

                  	
                    one
      or more of the Employee's relatives by blood, adoption or marriage and in
      such proportion as the Committee decides;
or

                  

          

        

      

      

      
        
          	 	
                  (b)

                	
                  the
      legal representative or representatives of the estate of the last to die
      of the Employee and his
beneficiary.

                

        

      

      

      9.  Retirement.  For
purposes of this Agreement, the term "Retirement" means:  (a)
termination of employment because the Employee has reached normal retirement age
of 65 years; (b) termination of employment because the Employee becomes
Disabled; or (c) termination of employment because the employee has attained at
least age 55 and has at least 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      10 years
of employment with the Company or any Related Companies.  For purposes
of this Agreement, the term "Disabled" means the inability of the Employee, by
reason of a medically determinable physical or mental impairment, to engage in
any substantial gainful activity, which condition, in the opinion of a physician
selected by the Committee, is expected to result in death or can be expected to
last for a continuous period of not less than 12 months.

      

      10.  Transferability.  Performance
Cash Units awarded under this Agreement are not transferable except as
designated by the Employee by will or by the laws of descent and
distribution.  Notwithstanding the foregoing, the Committee may permit
Performance Cash Units awarded under this Agreement to be transferred by the
Employee for no consideration to or for the benefit of the Employee’s Immediate
Family, subject to such limits as the Committee may establish, and the
transferee shall remain subject to all terms and conditions applicable to such
award prior to such transfer.

       

      11.  Employment.  This
Agreement does not constitute a contract of employment, and does not confer on
the Employee the right to be retained in the employ of the Company or any
Related Company.

      

      12.  Change in
Control.  In the event that a Change in Control occurs prior to
the end of the Performance Period, Performance Cash Units may be paid out in
such manner and amounts as determined by the Committee.

      

      13.  Plan
Governs.  Notwithstanding anything in this Agreement to the
contrary, the terms of this Agreement shall be subject to the terms of the
Program and of the Plan, copies of which may be obtained by the Employee from
the office of the Secretary of the Company.  In the event of any
conflict between any terms of this Agreement and the terms of the Plan, the
terms of the Plan shall govern.

      

      14.  Administration.  The
authority to manage and control the operation and administration of this
Agreement shall be vested in the Committee, and the Committee shall have all
powers with respect to this Agreement as it has with respect to the Program and
the Plan.  Any interpretation of the Agreement by the Committee and
any decision made by it with respect to the Agreement is final and binding on
all persons.

      

      15.  Amendment.  This
Agreement may be amended by written agreement of the Employee and the Company,
without the consent of any other person.  Notwithstanding the
foregoing, the Company may in its sole discretion, amend the this Agreement, the
Program or the Plan in such manner as it may determine is necessary or
desirable either for the Performance Cash Units to be exempt from the
application of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”) or to satisfy the requirements of Section 409A of the Code,
provided that no such amendment may change the Program's "performance goals,"
within the meaning of Section 162(m) of the Code, with respect to any
person who is a "covered employee," within the meaning of Section 162(m) of
the Code.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the Employee has hereunto set his hand, and the Company has
caused these presents to be executed in its name and on its behalf, and its
corporate seal to be affixed hereto, all as of the Agreement Date.

       

       

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	 	 
	 	[First_Name]
      [Middle_Initial] [Last_Name]
	 	
                                                        Nicor
      Inc.

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        	 	
                 

              	By:	[Signature                                                                                                                           
      ]
	 	 	 	[Authorized Nicor
      Officer Name]
	 	 	 	[Authorized Nicor
      Officer Title]
	 	 	 	 
	 	 	 	 
	ATTEST:	 	 	 
	 	 	 	 
	 	 	 	 
	Assistant Secretary	 	 	 

      

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

      

      

      PERFORMANCE
CASH UNIT AGREEMENT

      NICOR INC. 2006 LONG-TERM
INCENTIVE PLAN

      

       

      Performance
Multiplier

      

      The
following Schedule shall be used to determine the Performance
Multiplier.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Performance Unit Multiplier
      Schedule

                                  
	 	 	 
	
                                    Nicor TSR Ranking

                                  	 	
                                    Payout Multiple

                                  
	
                                    90th
      Percentile or higher

                                  	 	
                                    200%

                                  
	
                                    50th
      Percentile

                                  	 	
                                    100%

                                  
	
                                    25th
      Percentile

                                  	 	
                                    25%

                                  
	
                                    Below
      25th
      Percentile

                                  	 	
                                    0%

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      For
purposes of this Exhibit A, the percentile of the Nicor Total Shareholder Return
shall be the three year total shareholder return of the Company for the
Performance Period, as compared to the companies in the Standard and Poor's
MidCap 400 Utility group for the Performance Period.  If the Standard
and Poor's MidCap 400 Utility group is not available for the entire Performance
Period, the Committee shall apply such other measure as it determines to be
appropriate to preserve the intent of this Agreement.  For results
between performance levels, the Performance Multiplier will be
interpolated.

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