Document:

exhibit1001nicorgasagreement.htm

    Nicor
Gas Company

    Form 8-K 

    Exhibit 10.01

     

    MEMORANDUM
OF AGREEMENT REACHED (Corrected 3/17/09)

    IN COLLECTIVE BARGAINING –
MARCH
11,
2009

    

    As a
result of collective bargaining, the following agreement has been
reached.

    I.          Term of
Agreement

    The term
of the new agreement will be from March 1, 2009 through February 28,
2014.

     

    II.        General Wage
Increase

    Members
of Local 19 will receive a general wage increase of 3.00% effective March
1, 2009, 3.00%
effective March 1, 2010, 3.50% effective March
1, 2011, 3.00%
effective March 1, 2012, and 3.25% effective March
1, 2013.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Present Maximum 

                                Rate

                              	 
      	
                                Effective 3/1/2009

                              	
                                Effective 3/1/2010

                              	
                                Effective 3/1/2011

                              	
                                Effective 3/1/2012

                              	
                                Effective 3/1/2013

                              
	
                                $32.22

                              	 
      	
                                $0.97

                              	
                                $0.99

                              	
                                $1.19

                              	
                                $1.06

                              	
                                $1.18

                              
	
                                $32.07

                              	 
      	
                                $0.95

                              	
                                $0.98

                              	
                                $1.18

                              	
                                $1.05

                              	
                                $1.17

                              
	
                                $31.69

                              	 
      	
                                $0.95

                              	
                                $0.98

                              	
                                $1.18

                              	
                                $1.04

                              	
                                $1.16

                              
	
                                $31.35

                              	 
      	
                                $0.94

                              	
                                $0.97

                              	
                                $1.16

                              	
                                $1.03

                              	
                                $1.15

                              
	
                                $30.55

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.54

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.48

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.01

                              	 
      	
                                $0.90

                              	
                                $0.93

                              	
                                $1.11

                              	
                                $0.99

                              	
                                $1.10

                              
	
                                $28.93

                              	 
      	
                                $0.87

                              	
                                $0.89

                              	
                                $1.07

                              	
                                $0.95

                              	
                                $1.06

                              
	
                                $28.46

                              	 
      	
                                $0.84

                              	
                                $0.86

                              	
                                $1.04

                              	
                                $0.92

                              	
                                $1.03

                              
	
                                $28.30

                              	 
      	
                                $0.85

                              	
                                $0.87

                              	
                                $1.05

                              	
                                $0.93

                              	
                                $1.04

                              
	
                                $27.57

                              	 
      	
                                $0.83

                              	
                                $0.85

                              	
                                $1.02

                              	
                                $0.91

                              	
                                $1.01

                              
	
                                $27.35

                              	 
      	
                                $0.82

                              	
                                $0.84

                              	
                                $1.01

                              	
                                $0.90

                              	
                                $1.00

                              
	
                                $27.20

                              	 
      	
                                $0.82

                              	
                                $0.84

                              	
                                $1.01

                              	
                                $0.90

                              	
                                $1.00

                              
	
                                $26.92

                              	 
      	
                                $0.81

                              	
                                $0.83

                              	
                                $1.00

                              	
                                $0.89

                              	
                                $0.99

                              
	
                                $26.33

                              	 
      	
                                $0.79

                              	
                                $0.81

                              	
                                $0.98

                              	
                                $0.87

                              	
                                $0.97

                              
	
                                $25.69

                              	 
      	
                                $0.77

                              	
                                $0.79

                              	
                                $0.95

                              	
                                $0.85

                              	
                                $0.94

                              
	
                                $25.66

                              	 
      	
                                $0.71

                              	
                                $0.73

                              	
                                $0.88

                              	
                                $0.78

                              	
                                $0.87

                              
	
                                $24.35

                              	 
      	
                                $0.73

                              	
                                $0.75

                              	
                                $0.90

                              	
                                $0.80

                              	
                                $0.90

                              
	
                                $24.30

                              	 
      	
                                $0.73

                              	
                                $0.75

                              	
                                $0.90

                              	
                                $0.80

                              	
                                $0.89

                              
	
                                $23.12

                              	 
      	
                                $0.69

                              	
                                $0.71

                              	
                                $0.86

                              	
                                $0.76

                              	
                                $0.85

                              
	
                                $23.10

                              	 
      	
                                $0.69

                              	
                                $0.71

                              	
                                $0.86

                              	
                                $0.76

                              	
                                $0.85

                              
	
                                $22.90

                              	 
      	
                                $0.68

                              	
                                $0.70

                              	
                                $0.84

                              	
                                $0.75

                              	
                                $0.83

                              
	
                                $22.59

                              	 
      	
                                $0.68

                              	
                                $0.70

                              	
                                $0.84

                              	
                                $0.74

                              	
                                $0.83

                              
	
                                $21.56

                              	 
      	
                                $0.65

                              	
                                $0.67

                              	
                                $0.80

                              	
                                $0.71

                              	
                                $0.79

                              
	
                                $20.98

                              	 
      	
                                $0.63

                              	
                                $0.65

                              	
                                $0.78

                              	
                                $0.69

                              	
                                $0.77

                              
	
                                $20.26

                              	 
      	
                                $0.61

                              	
                                $0.63

                              	
                                $0.75

                              	
                                $0.67

                              	
                                $0.74

                              
	
                                $20.13

                              	 
      	
                                $0.60

                              	
                                $0.62

                              	
                                $0.74

                              	
                                $0.66

                              	
                                $0.73

                              
	
                                $19.46

                              	 
      	
                                $0.57

                              	
                                $0.59

                              	
                                $0.71

                              	
                                $0.63

                              	
                                $0.70

                              
	
                                $19.44

                              	 
      	
                                $0.57

                              	
                                $0.59

                              	
                                $0.71

                              	
                                $0.63

                              	
                                $0.70

                              
	
                                $18.33

                              	 
      	
                                $0.55

                              	
                                $0.57

                              	
                                $0.68

                              	
                                $0.60

                              	
                                $0.67

                              
	
                                $17.92

                              	 
      	
                                $0.54

                              	
                                $0.55

                              	
                                $0.67

                              	
                                $0.59

                              	
                                $0.66

                              
	
                                $16.87

                              	 
      	
                                $0.51

                              	
                                $0.52

                              	
                                $0.63

                              	
                                $0.56

                              	
                                $0.62

                              
	
                                $16.72

                              	 
      	
                                $0.50

                              	
                                $0.52

                              	
                                $0.62

                              	
                                $0.55

                              	
                                $0.61

                              
	
                                $16.52

                              	 
      	
                                $0.50

                              	
                                $0.51

                              	
                                $0.61

                              	
                                $0.54

                              	
                                $0.61

                              
	
                                $15.99

                              	 
      	
                                $0.48

                              	
                                $0.49

                              	
                                $0.59

                              	
                                $0.53

                              	
                                $0.59

                              
	
                                $15.82

                              	 
      	
                                $0.46

                              	
                                $0.47

                              	
                                $0.56

                              	
                                $0.50

                              	
                                $0.56

                              
	
                                $15.37

                              	 
      	
                                $0.46

                              	
                                $0.47

                              	
                                $0.57

                              	
                                $0.51

                              	
                                $0.56

                              
	
                                $15.35

                              	 
      	
                                $0.45

                              	
                                $0.47

                              	
                                $0.56

                              	
                                $0.50

                              	
                                $0.55

                              
	
                                $14.33

                              	 
      	
                                $0.43

                              	
                                $0.44

                              	
                                $0.53

                              	
                                $0.47

                              	
                                $0.53

                              
	
                                $13.16

                              	 
      	
                                $0.39

                              	
                                $0.40

                              	
                                $0.49

                              	
                                $0.43

                              	
                                $0.48

                              
	
                                $12.47

                              	 
      	
                                $0.37

                              	
                                $0.38

                              	
                                $0.46

                              	
                                $0.41

                              	
                                $0.46

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        1 

      

      
         

        
          

        

      

      
         

      

    

    All
general wage increases will be placed into effect in the same manner as, and the
conditions applicable to, the last general wage increase.

    

    General Contract
Items

    

    Article
IV, Section 4

    Night
shift premium has been increased from $1.35 to $1.50 per
hour.   Sections 4(c) and 4(d) have been eliminated.

    

    Article
IV, Section 13

    An
exception has been added to exclude employee hours reported on disability and/or
workers compensation from the forty (40) paid hours of the basic work
week.  This Article will not apply to employees “called out” to
perform work per prior agreement in 2000.

    

    Article
IV, Section 18

    Paragraph
3 of Article IV, Section 18 has been revised as follows:

     

    The first
sentence “An employee who operates a Company-owned vehicle which is kept at
his/her home shall, in case of a call-back, be paid a call-back allowance of two
hours at straight time.”  has been eliminated.

    

    Article
IV, Section 23

    Has been
revised to increase the meal money allowance from $7.50 to $8.00.

    

    Article
VI

    Has been
revised to eliminate language regarding “banked” vacation hours.

     

    Has been
revised to use vacation in half hour increments for authorized Family Medical
Leave absences only.

     

    Section 8
has been revised as follows:  An employee’s eligibility for earned
vacation shall not be affected by a prolonged absence while they are on Short
Term Disability.   However, employees will not accrue vacation
while on Long Term Disability.

     

    Section
12 has been revised that employees on Short Term Disability or Workers
Compensation at the end of the calendar year will not be allowed to defer
vacation into the next year.

    

    Article
VII, Section 3

    Has been
revised that “Assignments of four hours in an eight hour day and five hours in a
ten hour day shall be considered a full day under this
section.  No payment will be made for such temporary assignments if
they amount to less than four hours in an eight hour day and five hours in a ten
hour day.”

     

    
      
        2 

      

      
         

        
          

        

      

      
         

      

    

    Article
VII, Section 5(b)

    Has been
revised as follows:  “The hourly rate of pay of an employee who is
less than 55 years of age will be reduced by $1.50 per hour immediately after
the date of the transfer to the lower job classification.  On the
first anniversary date following the transfer and on every succeeding
anniversary date the employee’s hourly rate will be reduced by $1.50 per
hour.  This reduction will continue until the hourly rate of the
employee is equal to the maximum hourly rate of the job the employee is
performing.   During this period, the employee will not be
eligible to receive general wage increases.  Employees administered
under Article VII, Section 5 prior to ratification will not be affected by this
change.

     

    Article
VIII

    The
Company and the Union have agreed to discuss the language of Article VIII for
revisions to the grievance procedure that would best meet the needs of the Union
and the Company.

     

    Article
IX

    The
sentence (4d) has been eliminated as the Employee Benefit Association Plan will
be replaced with a third party administrator to manage the Short Term
Disability, Long Term Disability and Workers Compensation Cases. The details of
the short term and long term disability plan provisions will be updated and
contained in the summary plan description.

     

    Exhibit
C – Memorandums of Agreement

     

    The
Company and the Union have agreed to add the following language to the
memorandum, “Statements Covering Items of Understanding, Re:  Two
persons on Steel and Promotional Sequence (Dated February 15, 1994 and revised
March 1, 2000) as follows:  “During daylight savings time, call out
for replacement of services less than 2” will be a proper work assignment for
two persons during day or night.  If daylight savings time goes away, it
will revert to the same period of time described in months which currently is
March through October.

     

    The
Memorandum of Agreement dealing with the installation of mains and services by
contractors will be made part of Exhibit C.  (See Exhibit
I)

     

    The
Company and the Union have agreed to review certain Memorandums of Agreement for
inclusion in the Collective Bargaining Agreement.

     

    General
Items

    

    
      	
              1.  

            	
              Assistant
      Vice-President secretarial stenographer positions will no longer be part
      of the bargaining unit.  Employees currently in these positions
      will be given a one time option to remain as a bargaining unit
      employee.

            

    

    
 

    
      
         
3

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              2.  

            	
              Non-analytical
      Hi/Lows and Step Down reads to the last actual bill will be a proper
      assignment for a Level 3 clerical employee.  (Hi/Lows involving
      cancel and rebills greater than 90 days, write-offs and factor refinements
      will still be considered level 4 work.)  The
      Company will fill six General Office Clerk positions (Level 3) in
      BQA.

            

    

     

    
      	
              3.  

            	
              The
      Company will maintain ten Service Clerks (Level 4) and five Level 5
      positions in BQA for the term of this
contract.

            

    

    

    
      	
              4.  

            	
              The
      Company will fill one Accounting Record Clerk Position (Level 5) and two
      Service Representative (Level 6) positions in
  BQA.

            

    

    

    
      	
              5.  

            	
              The
      Company will maintain ten Sr. Customer Care Specialists for the term of
      this Contract.

            

    

    

    
      	
              6.  

            	
              The
      Company will fill five Sr. Customer Care Specialists positions in Sycamore
      and one Sr. Customer Care Specialist in
  Bloomington.

            

    

    

    
      	
              7.  

            	
              The
      Company will have right of selection for the Sr. Customer Care Specialist
      positions, from applicants within the Customer Care Specialist
      classification, within six months of the senior applicant.  The
      selection of an employee, made according to the criteria set forth in this
      agreement, will not be subject to the grievance procedure.  An
      employee passed up under the bidding process outlined in this agreement
      will, upon inquiry, be informed by the company of the reason why she/he
      was not promoted.

            

    

    

    
      	
              8.  

            	
              Correspondence
      work related to Deferred Payment Arrangements, deposits,
      address/name/spelling corrections, customer readings, Gas Line Comfort
      Guard/Heating, Ventilation and Air Conditioning, missed appointments,
      multiples and telephone collection compliance will be a proper assignment
      for a Customer Care Specialist (Level
2A).

            

    

    

    
      	
              9.  

            	
              The
      Company agrees to fill one Accounting Records Clerk (Level 5) and one Lead
      Accounting Clerk (Level 6) in the Correspondence
    Department.

            

    

    

    
      	
              10.  

            	
              The
      2000 Selection Agreement pertaining to Service Clerks in the BQA and
      Correspondence Departments has been eliminated and replaced with a
      training/certification process for employees who do not come from the
      Call Center or do not have Customer Care and Billing
      experience.

            

    

    

    
      	
              11.  

            	
              The
      Company agrees to fill a General Analysis Clerk (Level 7) in G.O. and the
      Memorandum of Understanding, General Accounting Level 7 Positions –
      Restructuring of Duties effective February 22, 2005 has been
      eliminated.

            

    

    

    
      	
              12.  

            	
              The
      excess clerical employee ground rules have been revised to include
      Sycamore.  (See Exhibit
II)

            

    

    
 

    
      
        4 

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              13.  

            	
              The
      Collector job classification has been eliminated.  Incumbent
      employees will be grandfathered and offered a lateral option within Credit
      & Collections or Service Clerk positions within BQA.  The
      employees in Bloomington and Joliet will not be forced from their current
      work locations. If unable to pass Level 4 BQA certification, the employees
      will remain in Credit & Collections.  All other Collectors will
      report to Aurora, Yorkville or G.O.

            

    

    

    
      	
              14.  

            	
              Pre-requisites
      for the Construction Clerk job classification have been
      eliminated.

            

    

    

    
      	
              15.  

            	
              The
      Company will fill a Construction Clerk position (Level 5) in Bellwood and
      a Service Representative position (Level 6) in Field Operations
      Construction.

            

    

    

    
      	
              16.  

            	
              The
      Company will fill a Service Clerk position (Level 4) in either
      Credit/Collections or BQA. (Collectors will be eligible to lateral to this
      position.)

            

    

    

    
      	
              17.  

            	
              Clerical
      employees in levels 1, 2, 2A and 3 will have the opportunity to accept
      open positions in Meter Reading.  (See Exhibit
    III)

            

    

    

    
      	
              18.  

            	
              Employees
      accepting promotions will receive an increase at the time of the promotion
      based on 70% of the difference of the maximum rate of the current job
      classification and the minimum rate of the promotional job
      classification.  After successful completion of their qualifying
      period, the employee will receive 100% of the promotional
      increase.

            

    

    

    
      	
              19.  

            	
              A
      Sr. Distribution Plastic Operator in the Field Operations Construction
      department has been created which will require testing and certification
      as part of the selection process. The hourly rate of pay will be $31.12 to
      $31.35.  (See
      Exhibit IV)

            

    

    

    
      	
              20.  

            	
              The
      Utility Inspector Selection Memorandum of Agreement has been extended and
      the Company has agreed to maintain 18 Sr. Specialists in the System
      Operations Department for the term of the
  contract.

            

    

    

    
      	
              21.  

            	
              The
      Arc Welder job classification has been added to the promotional sequence
      in the Storage Department.

            

    

    

    
      	
              22.  

            	
              The
      Company has agreed to maintain 200 employees in the Operations Mechanic
      and Sr. Operations Mechanic job classification for the term of the
      agreement.

            

    

    

    
      	
              23.  

            	
              The
      Company and the Union have agreed to add Leak Investigation and Leak
      Grading to the certification process for the Distribution Mechanic,
      Controller and Sr. Controller job classifications.  The training
      time for certification will be adjusted to account for the additional
      courses, if necessary.  Employees currently in the Distribution
      Mechanic, Controller and Sr. Controller job classifications will be
      trained and qualified as business conditions
  permit.

            

    

    

    
      	
              24.  

            	
              The
      Company and the Union have agreed to implement a modular training and
      certification process for the Operations Mechanic job
      classification.

            

    

    

    
      	
                     25.
        

            	
              There
      is an agreement to add a test for meter reader/helper (hired after 2007)
      promoting to mechanic level job classification or
      equivalent.  Mutual agreement will be obtained between the
      company and union before implementation of the testing
      program.

            

    

     

     

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
                   
      26.   

            	
              The
      Company will fill the following positions upon ratification of the
      Contract.

            

    

    (1)
Distribution Crewleader – (1) Joliet

    
      	
               
      

            	
              (4)
      Distribution Technicians – (2) Glen Ellyn, (1) Joliet, (1)
      Bloomington

            

    

    
      	
               
      

            	
              (7)
      Distribution Mechanics – (4) Bellwood, (1) Park Ridge, (2)
      Schaumburg

            

    

    
      	
               
      

            	
              (1)
      Operations Mechanic – (1) Rockford

            

    

    
      	
               
      

            	
              (2)
      Leak Survey Specialists (1) Park Ridge, (1)
      Joliet

            

    

    
      	
               
      

            	
              (1)
      Sr. Distribution Plastic Operator

            

    

    

    Benefit
Items

    

    Short
Term Disability Plan

    

    
      	
              1.  

            	
              The
      Company and the Union have agreed to eliminate the EBA Board and engage a
      third party administrator to case manage all STD, LTD, and Worker’s
      Compensation cases.

            

    

    

    
      	
              2.  

            	
              Employee
      premiums for Short Term Disability benefits will be deducted on a pre-tax
      basis.

            

    

    

    
      	
              3.  

            	
              The
      length of the Short Term Disability benefit has been reduced from 39 weeks
      to 26 weeks.

            

    

    

    
      	
              4.  

            	
              Short
      Term Disability benefits will be paid according to years of
      service:

            

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                 Years
      of Service

                              	
                                Percentage
      of Base Pay

                              
	
                                 20+
      years

                              	
                                75%

                              
	
                                 11
      – 19 years

                              	
                                65%

                              
	
                                 6
      months – 10 years

                              	
                                60%

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    This
schedule will be effective the pay period following the employee’s service
anniversary date.

    

    
      
        	
                5.
       

              	
                Employees
      will be eligible to enroll in the Short Term Disability program without
      evidence of insurability after completing six months of
      service.

              

      

    

    

    
      	
               
      

            	
              The
      Company and the Union have agreed to modify the Short Term Disability
      Election Form to ensure an eligible employee understands the repercussions
      of their decision not to participate in the plan.  The
      repercussion can include termination of employment.  The Union
      President will be notified of such
elections.

            

    

    

    
      
        	
                6.
       

              	
                Employees
      who do not initially enroll in the Short Term Disability benefit at
      completion of six months of service may enroll in the program during the
      annual open enrollment period with evidence of
    insurability.

              

      

    

    

    
      	
               
      

            	
              7.
        

            	
              Disability
      absences either, full or partial day, will be counted as an incident and a
      full day absence.

            

    

    

    
      	
               
      

            	
              8.
        

            	
              Time
      incurred on the Short or Long Term disability program will not be counted
      towards reinstating the 4 incident and/or 8 day absence program when they
      return to work.

            

    

     

     

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              9.
        

            	
              Following
      ratification of the contract, a four pay period moratorium suspending
      short term disability premiums will be
  implemented.

            

    

    

    Flexible
Spending Account

    The
Company will implement a debit card effective with the 2010 plan year
rollout.

    

    Retirement
Growth Account

    Effective
with the 2009 award the annual Company contribution to the Retirement Growth
Account for eligible employees hired on and after January 1, 1998 will be
increased to 1.4%.

    The 2009
award will be contributed to employee accounts in the first quarter of
2010.

    

    Thrift
Plan

    The
Company will add the following new options to the 401(k) plan:

    
      	
              ·  

            	
              Roth
      401(k) contribution

            

    

    
      	
              ·  

            	
              Catch
      up contribution

            

    

    
      	
              ·  

            	
              Roll-ins
      from previous employer plans

            

    

    
      	
              ·  

            	
              Increase
      pre-tax deferral percentage to 50%.

            

    

    The date
of implementation will be coordinated with the third party provider and
communicated to eligible employees in a timely manner.

    

    Pension and Insurance
Plans

    The
Supplemental Agreement with respect to the Pension Plan, and the Supplemental
Agreement with respect to the Group Life Insurance Plan, Dependent Life
Insurance Plan, Group Accidental and Dismemberment Plan, Group Medical Expense
Insurance Plan and Dental Plan, to which the Company and the Union are parties,
will terminate in accordance with their terms after February
28, 2009.  These supplemental agreements will be amended as
follows:

    

    
      	
               
      

            	
              1.

            	
              The
      Supplemental Agreement with respect to the Pension Plan will be effective
      March 1, 2009 through February 28, 2014.  Changes to the Pension
      Band are noted in Exhibit V.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      Supplemental Agreement with respect to the Group Life Insurance Plan,
      Dependent Life Insurance Plan, Group Accidental and Dismemberment Plan,
      Group Medical Expense Insurance Plan and Dental Plan will be effective
      March
      1, 2009 through February 28, 2014 and will contain the following
      changes:

            

    

    

    a.            
Gift Life Insurance will be increased from $9,500.00 to $10,000.00.

    

    
      	
               
      

            	
              b.

            	
              Non-Contributory
      Life Insurance provision will be increased from 1.5 times base pay to
      1.6 times base pay.

            

    

    

    
      	
               
      

            	
              c.

            	
              The
      lifetime maximum benefit per active employee participant under the Group
      Medical Expense Insurance Plan will be reinstated to $1,500,000 effective
      March 1, 2009.

            

    

    

    
      
        	
                 
      

              	
                d.

              	
                The
      Group Medical Insurance Plan will be revised to allow legal dependents of
      active employees to participate in both the PPO and HMO medical plans to
      age 26 per the recent regulations passed in the State
  of

              

         

         

        
          
            7

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        	 	 	
                Illinois.  In
      the event this legislation is revoked the company and the union will
      discuss and agree on any future
terms.

              

      

    

    

    
      
        	
                Retiree
      Medical Insurance

              

      

    

    

    Caps for
retiree medical coverage for eligible employees hired prior to February 28, 1997
and with less than 15 years of service as of January 1, 1998 and
employees hired on and after

    March 1,
1997 has been improved as follows:

    
    

     

    
      
        
          
            	 	 	 	 	
                    Maximum
      Annual Amount

                  	 
	 	 	 	 	
                    Paid by Company
      Toward

                  	 
	Employee
      Category  	 	Coverage
    Type	 	
                    Retiree Medical
      Premium

                  	 
	 	 	 	 	 	 	 	 
	Employees hired on
      or    	 	 	 	
                     Pre-65                  

                  	 	Post-65	 
	before February 28,
      1997	 	Single  	 	$  6,500	 	$ 
    3,090	 
	on the payroll as
      of	 	 	 	 	 	 	 
	January 1, 1998
      with   	 	Family     	 	$ 12,200	 	$ 
    5,740	 
	less than 15 years
      service	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Employees hired on
      and        	 	Single         	 	$  4,120	 	$ 
    1,730	 
	after March 1,
      1997     	 	Family                                                      	 	$  7,700             	 	$ 
    3,250	 
	 	 	 	 	 	 	 	 

          

        

      

    

     

                                                                                               

    
      
        8 

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
I

     

    

    Memorandum
of Agreement

    Dated
March 1, 2009

    

    This
document will supersede any prior agreements or memorandums pertaining to the
installation of mains and services by contractors.

    

    The
Company will notify the Union President regarding plans to work contractors on
overtime installing mains and services.

    

    The
Company and the Union agree to the following when contractors work overtime
installing gas mains and services that our employees normally
perform.

    

    
      	
              ·  

            	
              In
      situations where the contractor works overtime and the contractor performs
      work that normally is performed by our employees, the Company will offer
      employees from the reporting center where the work is being performed the
      opportunity to work.  The work will be offered as designated
      below until an equal number of employees have accepted the work or all
      employees have been asked to work.

            

    

    

    
      	
              ·  

            	
              Reporting
      Center is defined as the area covered for emergency or scheduled overtime
      by employees assigned to a specific company
  headquarters.

            

    

    

    
      	
              ·  

            	
              Overtime
      will be defined as scheduled days of work after the contractor has worked
      40 hours in a calendar week and will not include hours during extended
      days as a result of necessities on the job or additional days to make up
      for inclement weather.

            

    

    

    
      	
              ·  

            	
              The
      work will be offered to our employees within a week after the contractor
      works and will be offered to the Nicor employee group most aligned with
      business needs as follows:

            

    

    

    The
overtime will be offered to Field Operations Construction employees when
contractors install new P.E. mains and new P.E. services and then Field
Operations Delivery employees if additional resources are
required.  In areas with no Field Operations Construction employees,
the overtime would be offered to Field Operations Delivery
employees.

    

    The
overtime will be offered to Field Operations Delivery employees when contractors
are performing public improvement, system improvement and revision mains and
services.

     

    

    
      
        9

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
II

     

     

    Excess Clerical Employee
Ground Rules

    Dated
July 12, 1984

    Revised
July 19, 1991

    Revised
March 1, 2009

    

    It has
been agreed between the company and union that excess clerical employees will
not be forced from their previous reporting headquarters beyond the reasonable
distances as set forth below.

    

    
    

     

    
      
        
          	 G.O.   	 	 Park
      Ridge      	 	 Crystal
      Lake 	 	 Bellwood 	 
	Bellwood 	 	Glen
      Ellyn 	 	Elgin 	 	Park
      Ridge 	 
	Joliet  	 	Aurora/Yorkville 	 	Schaumburg 	 	Schaumburg 	 
	Glen
      Ellyn 	 	Crystal
      Lake 	 	Sycamore 	 	Glenwood 	 
	Aurora/Yorkville 	 	Schaumburg 	 	Rockford 	 	Crestwood 	 
	Sycamore 	 	Elgin 	 	Park
      Ridge 	 	G.O. 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Glenwood 	 	
                  Kankaee

                	 	Bloomington 	 	Paxton 	 
	Crestwood 	 	Glenwood     	 	Paxton 	 	Bloomington 	 
	Joliet  	 	Crestwood  	 	Hudson  	 	Kankakee 	 
	Kankakee  	 	Joliet  	 	Pontiac 	 	 	 
	G.O. 	 	 	 	 	 	 	 
	Bellwood 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Ottawa 	 	Joliet 	 	Glen
      Ellyn 	 	Sycamore 	 
	Joliet  	 	Kankakee   	 	G.O.  	 	Crystal
    Lake	 
	Yorkville       	 	G.O.  	 	Bellwood 	 	Dixon 	 
	Ancona        	 	Ottawa   	 	Park
      Ridge 	 	G.O. 	 
	Troy
      Grove  	 	Glenwood  	 	Schaumburg  	 	Glen
      Ellyn 	 
	 	 	Crestwood    	 	Sycamore                                 	 	Aurora/Yorkville 	 
	 	 	Glen
      Ellyn 	 	Elgin 	 	Elgin 	 
	 	 	Aurora/Yorkville 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Dixon 	 	Rockford 	 	 	 	 	 
	Rockford    	 	Crystal
      Lake 	 	 	 	 	 
	Sycamore 	 	Elgin	 	 	 	 	 
	 	 	Dixon 	 	 	 	 	 
	 	 	 	 	 	 	 	 

        

      

    

                                                                                 

     Employees
promoted to a 3 level position or higher prior to December 31, 1985 will not be
forced into the Call Center should they become excess.

     

    
      
        10 

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              Exhibit
      III

            

    

    
 

    
      	
               
      

            	
              AGREEMENT
      REGARDING TRANSFERS FROM CLERICAL TO METER
  READING

            

    

    

    

    
      
        	
                Employees
      from clerical levels 1, 2, 2A and 3 may accept positions in meter reading
      under the following
      conditions:

              

      

    

    
      
      

    

    

    
      	
              ·  

            	
              Employees
      must have 1 1⁄2 years in current
position.

            

    

    
      	
              ·  

            	
              If
      employee’s current rate of pay is greater than current meter reader rate
      of pay, the employee’s rate of pay will be reduced to the maximum of the
      meter reader job classification which currently is
  $15.35.

            

    

    
      	
              ·  

            	
              Employee’s
      whose rate of pay is below the maximum of the meter reader job will be
      slotted into the appropriate time and rate step (down) of the meter reader
      job classification.

            

    

    
      	
              ·  

            	
              Employees
      will have a one time opportunity to transfer to the meter reader job
      classification.

            

    

    
      	
              ·  

            	
              Employees
      will be required to pass meter pro training.  If an employee is
      unsuccessful in passing meter pro training the employee will not be
      eligible to return to the clerical bargaining unit and employment may be
      terminated.

            

    

    
      	
              ·  

            	
              Employees
      will be required to complete a 120 day qualifying period after successful
      completion of meter pro.  Employees who are unsuccessful will
      not be eligible to return to the clerical bargaining unit and employment
      may be terminated.

            

    

    
      	
              ·  

            	
              The
      discharge of an employee in their qualifying period will not be subject to
      the provisions of Article VIII.

            

    

    
      	
              ·  

            	
              Employees
      will not be eligible for time or mileage
  reimbursements.

            

    

    

    This
program will expire on July 1, 2011 unless extended by mutual agreement by the
Company and the Union.

    

    
      
        11 

      

      
         

        
          

        

      

      
         

      

    

     

                                    Exhibit
IV

     

     

    Senior
Distribution Plastic Operator

    Certification
Procedure

    Phase
I

    General
Information

    

    Phase I
of the Senior Distribution Plastic Operator position consists of six
parts:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  SECTION

                                                	
                                                  TYPE

                                                	
                                                  POINT
      VALUE

                                                
	
                                                  I

                                                	
                                                   Prerequisite
      – Distribution Plastic Laborer or  

                                                   Distribution/Operations
      Mechanic or Leak

                                                   Survey
      Specialist

                                                   Valid
      Driver’s License Proper Classification DOT  

                                                   Card

                                                   

                                                	
                                                  None

                                                
	
                                                  II

                                                	
                                                   Demonstrative
      Test – Use of Tools

                                                	 
      
	
                                                  III

                                                	
                                                   Demonstrative
      Test – Electrofusion

                                                	 
      
	
                                                  IV

                                                	
                                                   Demonstrative
      Test – Locating

                                                	 
      
	
                                                  V

                                                	
                                                   Demonstrative
      Test

                                                   Service
      Installation and Equipment Operation –   

                                                   Electrofusion

                                                	 
      
	
                                                  VI

                                                	
                                                   Written
      Test

                                                   Policies,
      Practices, Specifications and Problems

                                                	 
      
	
                                                  Total
      Points

                                                	 
      

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Note:

              	
                Personnel
      promoting from the Leak Survey Specialists and Operations Mechanic
      positions will be required to complete sections I-V.

              
	 	 
	 	Personnel
      promoting from the Watch & Protect Locator, and Senior Operations
      Mechanic will have a training schedule based on their prior job
      classification. 
	 	 
	 	
                Personnel
      promoting from Distribution Plastic Laborer, Distribution Mechanic,
      Distribution Plastic Operator, Distribution Technician and Distribution
      Plastic Operators will be required to completed sections IV and
      V. 

              

      

    

    

    
      
        	
                Proposed
      training time for Phase I

              	
                up
      to 10 weeks – Leak Survey Specialist, Distribution Plastic Laborer,
      Operations Mechanic, or Distribution Mechanics

              
	 	 
	 	10 days
      – Distribution Plastic Operator and Distribution
  Technician 
	 	 
	
                Proposed
      certification time 

              	
                45
      days – Leak Survey Specialist, Distribution Plastic Laborer, Distribution
      Operations Mechanic, 

              

         

        	 	10
      days – Distribution Plastic Operator and Distribution
      Technician 
	 	 
	Weighting
      of each criteria to be determined 	 
	 	 

      

    

    

     

    
      
        12 

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit IV
(Cont.)

     

     

    Senior
Distribution Plastic Operator

    Certification
Procedure

     

    Phase
II

     

    General
Information

    

    Phase II
of the Senior Distribution Plastic Operator position consists of eight
parts:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                SECTION

                                              	
                                                TYPE

                                              	
                                                POINT
      VALUE

                                              
	
                                                I

                                              	
                                                 Prerequisite
      – Successful Completion of Phase I

                                                 

                                              	
                                                None

                                              
	
                                                II

                                              	
                                                 Prerequisite
      – Electrofusion/Heat Fusion 

                                                 Qualification

                                              	 
      
	
                                                III

                                              	
                                                 Demonstrative
      Test – Plastic Fusion

                                              	 
      
	
                                                IV

                                              	
                                                 Written
      Assessment – GCS Specifications

                                              	 
      
	
                                                V

                                              	
                                                 Demonstrative
      Test – New Business Main 

                                                 Installation

                                                 

                                              	 
      
	
                                                VI

                                              	
                                                 Demonstrative
      Test – Work Order Completion

                                              	 
      
	
                                                VII

                                              	
                                                 Demonstrative
      Test – Daily Progress Reports

                                              	 
      
	
                                                VIII

                                              	
                                                 Leadership
      Competencies (method to be determined  

                                                 and
      agreed upon by the Company and the Union)

                                              	 
      
	 
      	 
      	 
      
	 
      	 
      

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    

    Proposed
training time for Phase II – up to 12 weeks

    Propose
certification time – 45 days

    

    Weighting
of each criteria to be determined

    

    
      
        13 

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
V

     

     

    Nicor
Gas Pension Plan

    Effective
March 1, 2009

    

    The
pension band increases are 2.0% in 2009, 2.0% in 2010, 2.0% in 2011, 2.0% in
2012, and 2.0%
in 2013.

    The
pension bands effective March 1, 2009 through February 28, 2014 will be as
follows:

    

    

    DOLLARS
PER MONTH PER YEAR OF SERVICE

    
      
        
          
            
              	
                      Pension
      Bands

                    	 	 	
                      03/01/2009
      thru 

                      2/28/2010

                    	 	 	
                      03/01/2010
      thru 

                      2/28/2011

                    	 	 	
                      03/01/2011
      thru 

                      2/29/2012

                    	 	 	
                      03/01/2012
      thru 

                      2/28/2013

                    	 	 	
                      03/01/2013
      thru 

                      2/28/2014

                    	 
	 	 	 	
                      
                        Thru
      

                        30

                        Years

                        Service

                      

                    	 	 	
                      
                        Over
      

                        30

                        Years

                        Service

                      

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 
	 	
                      1

                    	 	 	$	30.70	 	 	$	36.84	 	 	$	31.32	 	 	$	37.58	 	 	$	31.94	 	 	$	38.33	 	 	$	32.58	 	 	$	39.10	 	 	$	33.23	 	 	$	39.88	 
	 	
                      2

                    	 	 	$	36.84	 	 	$	42.95	 	 	$	37.58	 	 	$	43.81	 	 	$	38.33	 	 	$	44.69	 	 	$	39.10	 	 	$	45.58	 	 	$	39.88	 	 	$	46.49	 
	 	
                      3

                    	 	 	$	39.88	 	 	$	46.05	 	 	$	40.68	 	 	$	46.97	 	 	$	41.49	 	 	$	47.91	 	 	$	42.32	 	 	$	48.87	 	 	$	43.17	 	 	$	49.85	 
	 	
                      4

                    	 	 	$	49.16	 	 	$	55.26	 	 	$	50.15	 	 	$	56.37	 	 	$	51.15	 	 	$	57.50	 	 	$	52.17	 	 	$	58.65	 	 	$	53.22	 	 	$	59.82	 
	 	
                      5

                    	 	 	$	52.17	 	 	$	58.32	 	 	$	53.22	 	 	$	59.49	 	 	$	54.28	 	 	$	60.68	 	 	$	55.37	 	 	$	61.89	 	 	$	56.47	 	 	$	63.13	 
	 	
                      6

                    	 	 	$	58.32	 	 	$	64.49	 	 	$	59.49	 	 	$	65.78	 	 	$	60.68	 	 	$	67.10	 	 	$	61.89	 	 	$	68.44	 	 	$	63.13	 	 	$	69.81	 
	 	
                      7

                    	 	 	$	61.43	 	 	$	67.55	 	 	$	62.66	 	 	$	68.91	 	 	$	63.92	 	 	$	70.28	 	 	$	65.19	 	 	$	71.69	 	 	$	66.50	 	 	$	73.12	 
	 	
                      8

                    	 	 	$	67.55	 	 	$	73.68	 	 	$	68.91	 	 	$	75.16	 	 	$	70.28	 	 	$	76.66	 	 	$	71.69	 	 	$	78.19	 	 	$	73.12	 	 	$	79.76	 
	 	
                      9

                    	 	 	$	70.64	 	 	$	76.72	 	 	$	72.05	 	 	$	78.26	 	 	$	73.49	 	 	$	79.82	 	 	$	74.96	 	 	$	81.42	 	 	$	76.46	 	 	$	83.05	 
	 	
                      10

                    	 	 	$	73.68	 	 	$	79.83	 	 	$	75.16	 	 	$	81.42	 	 	$	76.66	 	 	$	83.05	 	 	$	78.19	 	 	$	84.71	 	 	$	79.76	 	 	$	86.41	 

            

          

        

      

    

    

    The early
retirement supplements between ages 55 and 60 will be as follows:

    

    DOLLARS
PER MONTH PER YEAR OF SERVICE

    
      
        
          
            	
                    Age
      at 

                    Retirement

                  	 	 	
                    03/01/2009
      

                    thru
      

                    2/28/2010

                  	 	 	
                    03/01/2010
      

                    thru
      

                    2/28/2011

                  	 	 	
                    03/01/2011
      

                    thru
      

                    2/29/2012

                  	 	 	
                    03/01/2012
      

                    thru
      

                    2/28/2013

                  	 	 	
                    03/01/2013
      

                    thru
      

                    2/28/2014

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                    55

                  	 	 	$	23.09	 	 	$	23.55	 	 	$	24.03	 	 	$	24.51	 	 	$	25.00	 
	 	
                    56

                  	 	 	$	23.91	 	 	$	24.39	 	 	$	24.87	 	 	$	25.37	 	 	$	25.88	 
	 	
                    57

                  	 	 	$	24.66	 	 	$	25.16	 	 	$	25.66	 	 	$	26.17	 	 	$	26.70	 
	 	
                    58

                  	 	 	$	25.49	 	 	$	26.00	 	 	$	26.52	 	 	$	27.05	 	 	$	27.59	 
	 	
                    59

                  	 	 	$	26.30	 	 	$	26.82	 	 	$	27.36	 	 	$	27.91	 	 	$	28.46	 

          

        

      

    

    

    The early
retirement supplement between ages 60 and 62 will be as follows:

    

    
      
        
          
            
              	 	60
      - 62	 	 	$	1,314.13	 	 	$	
                      1,340.41

                    	 	 	$	1,367.22	 	 	$	1,394.56	 	 	$	1,422.45	 

            

          

        

      

    

    

     

    
      
        14

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    Dated:  March
12, 2009

    

    

    

    For
Nicor Gas

    

    

    

    

    

    
      /s/ PAT
LOFTUS

      
        
          

        

      

    

    Pat
Loftus

    General
Manager Labor Relations

    

    

    

    

    

    For
Union Local 19

    

    

    

    /s/ ROB
WYRWICKI

    
      
        
          

        

      

    

    Rob
Wyrwicki

    President,
Business Manager, Financial Secretary

    

    

    

    

    

    /s/ AL
TALKINGTON

    
      
        
          

        

      

    

    Al
Talkington

    Senior
Assistant Business Manager

     

     

    
      
        15ex10_1.htm

     

    Exhibit
10.1

    
 

    FIFTH
AMENDMENT OF REVOLVING LINE OF CREDIT AGREEMENT

    

    

    This
Fifth Amendment of Revolving Line of Credit Agreement is made and entered into
as of April 15, 2009, by and among each of the persons who have executed this
Agreement as a Lender (each a “Lender,” and collectively “Lenders”), and
BioTime, Inc., a California corporation (“Borrower”), and amends that certain
Third Amended and Restated Credit Agreement, dated March 31, 2008, as amended by
that certain Fourth Amendment of Revolving Credit Agreement.

    

    The
Credit Agreement is amended as follows:

    

    1.           Definitions:

    

    (a)           “Credit Agreement” means the
Third Amended and Restated Credit Agreement, dated March 31, 2008, as amended by
the Fourth Amendment and this Fifth Amendment.

    

    (b)           “Fourth Amendment” means the
Fourth Amendment of Revolving Line of Credit Agreement.

    

    (c)           “Fifth Amendment” means this
Fourth Amendment of Revolving Line of Credit Agreement.

    

    (d)           “Maturity Date” means December
1, 2009.

    

    (e)           “Note” means (a) each
promissory note evidencing a portion of the Loan previously advanced by certain
Lenders, and (b) each Revolving Credit Note in the form attached as EXHIBIT
A-1evidencing the new Loan amounts to be advanced by certain
Lenders.

    

    (f)           “Security Agreement” means
that certain Third Amended and Restated Security Agreement, dated March 31,
2008, as amended by a Fifth Amendment of Security Agreement among Borrower and
Lenders pursuant to which Borrower is granting Lenders a first priority
perfected security interest in certain specified collateral to secure Borrower’s
obligations under this Agreement and the Note.

    

    2.           Draw Period.  The
Draw Period shall end on December 1, 2009.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Extension of Maturity
Date.  Any Lender holding a Note due April 15, 2009 may extend
the Maturity Date of that Note to December 1, 2009 by executing and delivering
to Borrower an Amendment of Revolving Credit Note in the form of Exhibit
B.

    

    4.           Shares.  Borrower
shall issue and deliver to certain Lenders a number of Shares having an
aggregate market value equal to six percent (6%) of the Lender’s Loan commitment
having a December 1, 2009 Maturity Date (including any new or additional Loan
commitment, and the principal amount of any Loan as to which the Lender extended
the Maturity Date by executing an Amendment of Revolving Credit
Note).  Shares will be issued only to those Lenders who (a) agree to
make a new or additional commitment to lend under this Fifth Amendment, or (b)
agree to extend the Maturity Date of their Note to December 1, 2009 by executing
an Amendment of Revolving Credit Note.  No fractional Shares shall be
issued.  For the purpose of determining the number of Shares to be
issued to a Lender entitled to receive Shares, the market value shall be deemed
to be the closing price of the Shares on the OTC Bulletin Board on the last day
on which a closing price of the Shares was reported prior to the date on which
the Lender executed and delivered this Fifth Amendment or an Amendment of
Revolving Credit Note.

    

    5.           Disclosure
Documents.  Borrower has delivered to Lenders following reports
filed by Borrower under Securities Exchange Act of 1934, as amended (the
“Exchange Act”):  (a) a copy of Borrower’s annual report on Form 10-K
for the fiscal year ended December 31, 2008, and (b) all Current Reports on Form
8-K filed by Borrower since March 23, 2009 (the “Current Disclosure
Documents”).  The financial statements contained in the Current
Disclosure Documents were prepared in accordance with generally accepted
accounting principles, consistently applied, and accurately reflect the
financial condition and results of operations of Borrower at and as of the dates
reported.  All financial information and other information contained
in the Current Disclosure Documents was true and correct in all material
respects when such reports were filed under the Exchange Act.

    

    6.           Exchange of Debt For
Equity.  Lenders who execute an Amendment of Revolving Credit
Note may exchange their amended Notes for BioTime Exchange Shares or ESI
Exchange Shares as follows:  Amended Notes that were exchangeable for
BioTime Exchange Shares at a price of $1.25 per share and ESI Exchange Shares at
$2.25 per share until April 15, 2009, may be exchanged for BioTime Exchange
Shares at $1.50 per share and ESI Exchange Shares at $2.75 per share until
December 1, 2009.  Amended Notes that were exchangeable for BioTime
Exchange Shares at a price of $1.50 per share and ESI Exchange Shares at a price
of $2.50 per share until April 15, 2009, may be exchanged for BioTime Exchange
Shares at $1.75 per share and ESI Exchange Shares at $3.00 per share until
December 31, 2009.

    

    Notes
having a Maturity Date of December 1, 2009 that were issued for a new Loan
commitment under this Fifth Amendment, may be exchanged, in whole or in part,
including both unpaid principal and accrued interest, for (x) BioTime Exchange
Shares at a price of $2.00 per share until December 1, 2009, or (y) ESI Exchange
Shares at a price of $3.50 per share until December 1, 2009.  All
other provisions of Section 17 of the Credit Agreement shall
apply.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    The
foregoing per share exchange prices are subject to proportional adjustment in
the event of a stock split, reverse stock split, stock dividend, or similar
event.

    

    7.           Other Provisions of Credit Agreement
Apply.  Except as modified or amended by this Fifth Amendment,
all provisions of the Third Amended and Restated Revolving Line of Credit
Agreement as amended by the Fourth Amendment shall remain in full force and
effect.  Any Lender who has not previously executed the Third Amended
and Restated Revolving Line of Credit Agreement and Fourth Amendment shall, by
executing this Fifth Amendment, (a) acknowledge receipt of the Third Amended and
Restated Revolving Line of Credit Agreement, and Fourth Amendment, (b) agree to
be bound by all terms and conditions of the Third Amended and Restated Revolving
Line of Credit Agreement, as amended by the Fourth Amendment and by this Fifth
Amendment, and (c) shall be deemed to have made the representations and
warranties set forth in Section 20 of the Third Amended and Restated Revolving
Line of Credit Agreement, except that references to the Disclosure Documents
shall instead mean the Current Disclosure Documents.

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first above written.

    

    

    BORROWER:

    

    BIOTIME,
INC.

    

    
      By 
/s/ Steven A.
Seinberg                                                              

      

      Title  Chief Financial
Officer                                                      
                   

      
 

      By 
/s/ Judith
Segall                                                                       

       

      Title
Vice President &
Secretary                                                 

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    LENDERS:

    

    

    _______________________________________________

    Alfred
D.  Kingsley

    

    

    GREENWAY
PARTNERS, LP

    By:         Greenway
Partners, LP,

    General Partner

    

    

    By                                                                           

    Alfred D. Kingsley, General
Partner

    

    

    GREENBELT
CORPORATION

    By:          Alfred
D. Kingsley,

    President

    

    

    By                                                                           

    Alfred D. Kingsley,
President

    

    

    

    _________________________________________________

    George
Karfunkel

    

    

    _________________________________________________

    Richard Lowish

    

    

    Broadwood
Partners, LP

    

    By:         Broadwood
Capital, Inc.,

    General Partner of Broadwood Partners,
LP

    

    

    By:  _______________________________

    Neal C. Bradsher,
President

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Goren
Brothers, LP

    

    

    By:
____________________________________________

    

    Title:  General
Partner

    

    

    _______________________________________________

    Joseph Nemeth

    

    

    Harto
Family Trust

    

    

    By:
____________________________________________

    

    Title:  Trustee

    

    

    New
England Law School

    

    

    By:
____________________________________________

    

    Title:  __________________________________________

    

    

    _______________________________________________

    Celine Cabanac

    

    

    Life
Sciences Business Development, LLC

    

    

    By:
____________________________________________

    

    Title:  __________________________________________

    

    

    _______________________________________________

    Joseph A. Magurne

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    _______________________________________________

    Patrick Kolenik

    

    

    Castaway
Clothing, LLC

    

    

    By:
____________________________________________

    

    Title:  __________________________________________

    

    

    

    SJCMB
Family Limited Partnership

    

    

    By:
____________________________________________

    

    Title:  General
Partner

    

    

    

    Huntington
Laurel Partners, LP

    

    

    By:
____________________________________________

    

    Title:  General
Partner

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    SCHEDULE
I

    

    Loan
Commitment—December 1, 2009 Maturity Date

    

    Name and
Address

    Of
Lender                                           Amount of Loan
Commitment

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
A-1

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    REVOLVING CREDIT
NOTE

    

    

    

    $___________ __________,
2009

    

    FOR VALUE
RECEIVED, the undersigned, BioTime, Inc., a California corporation (Borrower")
hereby promises to pay to the order of ___________("Lender") the principal sum
of _____________ DOLLARS ($_______________) or such lesser amount as may from
time to time be outstanding as the Loan pursuant to that certain Fifth Amendment
of Revolving Line of Credit Agreement, dated as of April 15, 2009, between
Borrower and Lender, together with interest on the unpaid balance of the Loan at
the rate or rates hereinafter set forth.  This Revolving Credit Note
is one of the Notes described in the Fifth Amendment of Revolving Line of Credit
Agreement.  As used in this Note the term “Credit Agreement” means the
Third Amended and Restated Revolving Line of Credit Agreement, dated March 31,
2008, as amended by the Fourth Amendment and Fifth Amendment.  All
capitalized terms not otherwise defined in this Note shall have the meanings
defined in the Credit Agreement.

    

    1.           Terms
of Payment.

    

    (a)           Interest
Rate.  Interest shall accrue and be payable at the rate of 12%
per annum on the outstanding principal balance of the Loan.  Interest
shall accrue from the date of each disbursement of principal pursuant to a
Draw.  Accrued interest shall be paid with principal. Interest will be
charged on that part of outstanding principal of the Loan which has not been
paid and shall be calculated on the basis of a 360-day year and a 30-day
month.

    

    (b)           Payments of
Principal.  The outstanding principal balance of the Loan,
together with accrued interest, shall be paid in full on the Maturity
Date.

    

    (c)           Optional Prepayment of
Principal.  Borrower may prepay principal, with accrued
interest, at any time and the amount of principal so prepaid shall be available
for further Draws by Borrower during the Draw Period.

    

    (d)           Default Interest
Rate.  In the event that any payment of principal or interest
is not paid within five (5) days from on the date on which the same is due and
payable, such payment shall continue as an obligation of the Borrower, and
interest thereon from the due date of such payment and interest on the entire
unpaid balance of the Loan shall accrue until paid in full at the lesser of (i)
fifteen percent (15%) per annum, or (ii) the highest interest rate permitted
under applicable law (the "Default Rate").  From and after the
Maturity Date or upon acceleration of the Note, the entire unpaid principal
balance of the Loan with all unpaid interest accrued thereon, and any and all
other fees and charges then due at such maturity, shall bear interest at the
Default Rate.

    
      A-1

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)           Date of Payment.  If
the date on which a payment of principal or interest on the Loan is due is a day
other than a Business Day, then payment of such principal or interest need not
be made on such date but may be made on the next succeeding Business
Day.

    

    (f)           Application of
Payments.  All payments shall be applied first to costs of
collection, next to late charges or other sums owing Lender, next to accrued
interest, and then to principal, or in such other order or proportion as Lender,
in its sole discretion, may determine.

    

    (g)           Currency.  All
payments shall be made in United States Dollars.

    

    2.           Events of
Default.  The following shall constitute Events of Default: (a)
the default of Borrower in the payment of any interest or principal due under
this Note or the Credit Agreement or any other Note arising under the Credit
Agreement; (b) the failure of Borrower to perform or observe any other term or
provision of this Note, or any other Note arising under the Credit Agreement, or
any term, provision, covenant, or agreement in the Credit Agreement or any other
Loan Document; (c) any act, omission, or other event that constitutes an "Event
of Default" under the Credit Agreement; (d) any representation or warranty of
Borrower contained in the Credit Agreement or in any other Loan Document, or in
any certificate delivered by Borrower pursuant to the Credit Agreement or any
other Loan Document, is false or incorrect in any material respect when made or
given; (e) Borrower becoming the subject of any order for relief in a proceeding
under any Debtor Relief Law (as defined below); (f) Borrower making an
assignment for the benefit of creditors; other than repayment of the Loan, in
whole or in part, to Lenders; (g) Borrower applying for or consenting to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator, or similar officer for it or for all or any part of its property
or assets; (h) the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator, or similar officer for Borrower, or for all or any
part of the property or assets of Borrower, without the application or consent
of Borrower, if such appointment continues undischarged or unstayed for sixty
(60) calendar days; (i) Borrower instituting or consenting to any proceeding
under any Debtor Relief Law with respect to Borrower or all or any part of its
property or assets, or the institution of any similar case or proceeding without
the consent of Borrower, if such case or proceeding continues undismissed or
unstayed for sixty (60) calendar days; (j) the dissolution or liquidation of
Borrower, or the winding-up of the business or affairs of Borrower; (k) the
taking of any action by Borrower to initiate any of the actions described in
clauses (e) through (j) of this paragraph; (l) the issuance or levy of any
judgment, writ, warrant of attachment or execution or similar process against
all or any material part of the property or assets of Borrower if such process
is not released, vacated or fully bonded within sixty (60) calendar days after
its issue or levy; or (m) any breach or default by Borrower under any loan
agreement, promissory note, or other instrument evidencing indebtedness payable
to a third party. As used in this Note, the term "Debtor Relief Law" means the
Bankruptcy Code of the United States of America, as amended, or any other
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief law affecting
the rights of creditors generally.

    

    3.           Remedies On
Default.  Upon the occurrence of an Event of Default, at
Lender's option, all unpaid principal and accrued interest, and all other
amounts payable under this Note shall become immediately due and payable without
presentment, demand, notice of non

    
      
        
          A-2

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    payment,
protest, or notice of non-payment.  Lender also shall have all other
rights, powers, and remedies available under the Credit Agreement and any other
Loan Document, or accorded by law or at equity.  All rights, powers,
and remedies of Lender may be exercised at any time by Lender and from time to
time after the occurrence of an Event of Default.  All rights, powers,
and remedies of Lender in connection with this Note and any other Loan Document
are cumulative and not exclusive and shall be in addition to any other rights,
powers, or remedies provided by law or equity.

    

    4.           Miscellaneous.

    

    (a)           Borrower
and all guarantors and endorsers of this Note severally waive (i) presentment,
demand, protest, notice of dishonor, and all other notices; (ii) any release or
discharge arising from any extension of time, discharge of a prior party,
release of any or all of the security for this Note, and (iii) any other cause
of release or discharge other than actual payment in full of all indebtedness
evidenced by or arising under this Note.

    

    (b)           No
delay or omission of Lender to exercise any right, whether before or after an
Event of Default, shall impair any such right or shall be construed to be a
waiver of any right or default, and the acceptance of any past-due amount at any
time by the Lender shall not be deemed to be a waiver of the right to require
prompt payment when due of any other amounts then or thereafter due and
payable.  The Lender shall not be deemed, by any act or omission, to
have waived any of Lender's rights or remedies under this Note unless such
waiver is in writing and signed by Lender and then only to the extent
specifically set forth in such writing.  A waiver with reference to
one event shall not be construed as continuing or as a bar to or waiver of any
right or remedy as to a subsequent event.

    

    (c)           Lender
may accept, indorse, present for payment, and negotiate checks marked "payment
in full" or with words of similar effect without waiving Lender's right to
collect from Borrower the full amount owed by Borrower.

    

    (d)           Time is of the essence under this
Note.  Upon any Event of Default, the Lender may exercise all
rights and remedies provided for in this Note and by law, including, but not
limited to, the right to immediate payment in full of this Note.

    

    (e)           The
rights and remedies of the Lender as provided in this Note, in the Credit
Agreement, and in the Security Agreement and in law or equity, shall be
cumulative and concurrent, and may be pursued singularly, successively, or
together at the sole discretion of the Lender, and may be exercised as often as
occasion therefor shall occur; and the failure to exercise any such right or
remedy shall in no event be construed as a waiver or a release of any such right
or remedy.

    

    (f)           It
is expressly agreed that if this Note is referred to an attorney or if suit is
brought to collect this Note or any amount due under this Note, or to enforce or
protect any rights conferred upon Lender by this Note then Borrower promises and
agrees to pay on demand all costs, including without limitation, reasonable
attorneys' fees, incurred by Lender in the enforcement of Lender's rights and
remedies under this Note, and such other agreements.

    
      
        
          A-3

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    (g)           The
terms, covenants, and conditions contained in this Note shall be binding upon
the heirs, executors, administrators, successors, and assigns of Borrower, and
each of them, and shall inure to the benefit of the heirs, executors,
administrators, successors and assigns of Lender.

    

    (h)           This
Note shall be construed under and governed by the laws of the State of
California without regard to conflicts of law.

    

    (i)           No
provision of this Note shall be construed or so operate as to require the
Borrower to pay interest at a greater rate than the maximum allowed by
applicable state or federal law.  Should any interest or other charges
paid or payable by the Borrower in connection with this Note or the Loan result
in the computation or earning of interest in excess of the maximum allowed by
applicable state or federal law, then any and all such excess shall be and the
same is hereby waived by Lender, and any and all such excess paid shall be
credited automatically against and in reduction of the outstanding principal
balance due of the Loan, and the portion of said excess which exceeds such
principal balance shall be paid by Lender to the Borrower.

    

    BORROWER:                                                      BIOTIME,
INC.

    

    

    By
_____________________________________________

    Title
___________________________________________

    

    By
_____________________________________________

    Title
____________________________________________

    
      
        
          A-4

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    AMENDMENT OF REVOLVING
CREDIT NOTE

    

    

    

    $___________ __________,
2009

    

    Reference
is made to that certain Revolving Credit Note dated ______, 200__, in the
principal sum of _____________ DOLLARS ($_______________) made by BioTime, Inc.,
as “Borrower,” and payable the order of the undersigned as “Lender” (the
“Note”).  The Maturity Date of the Note is hereby extended to December
1, 2009.  The Note, as so amended, shall be governed by that certain
Fifth Amendment of Revolving Line of Credit Agreement between Borrower and
Lender.

    

    

    LENDER:

    

    

    _________________________________________

    (Please Print Name of
Lender)

    

    

    By:  ______________________________________

    (Signature)

    

    Title:  _____________________________________

    (Please Show Title If
Applicable)

    

    

    BORROWER:

    

    BIOTIME,
INC.

    

    

    By
_____________________________________________

    

    Title
___________________________________________

    

    

    By
_____________________________________________

    

    Title
____________________________________________

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