Document:

Exhibit 10.2 - Form of Restricted Stock Agr for Directors

    Exhibit
      10.2 - Form of Restricted Stock Grant Agreement for Directors

    

    SEMCO
      ENERGY, INC. 

    2004
      Stock Award and Incentive Plan

    

    RESTRICTED
      STOCK GRANT AGREEMENT FOR DIRECTORS

    

    

    
      	
               

              Grantee:

            	
               

              [Name]

            
	
              Restricted
                Stock Grant:

            	
              [Number]
                Shares 

            
	
              Grant
                Date:

            	
              [Date]

            

    

    

    THIS
      RESTRICTED STOCK GRANT AGREEMENT is effective as of the Grant Date stated above,
      by and between SEMCO Energy, Inc. and the Grantee.

    WHEREAS,
      the shares of Restricted Stock described in this Agreement have been granted
      pursuant to, and are governed by, the Plan;

    NOW,
      THEREFORE, the Company and the Grantee hereby agree as follows:

    1.    Restricted
      Stock Grant.
      Subject
      to the terms and conditions of this Agreement, the Company hereby grants to
      Grantee the number of shares of Restricted Stock as specified
      above.

    2.    Vesting. 

    (a)    Regular
      Vesting Date.
      Except
      as stated in Section 2(b) of this Agreement, the Grantee shall become one
      hundred percent (100%) vested in the shares of Restricted Stock granted pursuant
      to this Agreement one-third on the first anniversary of the Grant Date,
      one-third on the second anniversary of the Grant Date, and one-third on the
      third anniversary of the Grant Date.

    (b)    Accelerated
      Vesting Dates.
      Notwithstanding the vesting requirements specified in Section 2(a) of this
      Agreement, all shares of Restricted Stock shall become 100% vested upon the
      occurrence of a Change in Control.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.    Restrictions/Forfeitures.
      All
      shares of Restricted Stock shall be subject to the following restrictions until
      their Vesting Date:

    (a)    Forfeiture
      on Termination.
      Subject
      to Section 2 of this Agreement, if the Grantee’s service as a Director
      terminates for any reason prior to the Vesting Date for the shares of Restricted
      Stock, the Grantee shall forfeit all rights with respect to such unvested shares
      of Restricted Stock, and the book entry account shall be null, void and of
      no
      effect as of the date the Grantee’s service as a Director
      terminates.

    (b)    Nontransferability.
      Prior
      to the Vesting Date with respect to the Restricted Stock, such shares of
      Restricted Stock shall be nontransferable and may not be sold, hypothecated
      or
      otherwise assigned or conveyed by a Grantee to any party, except as otherwise
      provided in Section 11(c) of the Plan.

    (c)    Additional
      Shares.
      Any
      shares of Common Stock accruing to Restricted Stock as a result of any
      adjustment under Section 11(c) of the Plan will be subject to the same
      restrictions (and have the same Vesting Dates) as the shares of Restricted
      Stock
      to which they accrue.

    4.    Delivery of Shares.
      

    (a)    Granted
      Shares.
      The
      shares of Restricted Stock awarded under this Plan shall be held in a book
      entry
      account for the Grantee by a broker-dealer designated by the Company and shall
      be registered in his name. Such shares of Restricted Stock shall be subject
      to
      the restrictions described Sections 2 and 3 of this Agreement until the Vesting
      Date for such shares of Restricted Stock, and the book entry account evidencing
      the shares of Restricted Stock shall bear a legend noticing those restrictions
      either specifically or by reference to the provisions of this Agreement. Such
      shares of Restricted Stock, when issued in accordance with this Agreement,
      shall
      be deemed to be fully paid and nonassessable. The Grantee shall supply the
      Company with an executed stock power or similar authorization with respect
      to
      any shares of Restricted Stock held in a book entry account.

     

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)    Vested
      Shares.
      Within
      ten (10) business days after the date on which the shares of Restricted Stock
      have vested pursuant to Section 2 of this Agreement, the restrictions on the
      book entry account holding such shares shall be removed and the stock power
      or
      similar authorization described in Section 4(a) of this Agreement will be
      destroyed. 

    5.    Ownership
      Rights.
      Except
      as otherwise provided in Sections 3 and 4, upon the grant of the shares of
      Restricted Stock under this Agreement, the Grantee shall exercise all ownership
      rights (including, without limitation, the right to vote and the right to
      receive dividends) with respect to such shares, provided that voting and
      dividend rights with respect to the shares will be exercisable only if the
      record date for determining shareholders entitled to vote, or to receive
      dividends, falls on or after the Grant Date and before the effective date of
      a
      forfeiture of Restricted Stock under Section 4 of this Agreement. The Grantee
      shall have the same rights with respect to any shares of Common Stock accruing
      to Restricted Stock as a result of any adjustment under Section 11(c) of the
      Plan. 

    6.    Deferral
      of Exercise or Delivery of Shares.
      Notwithstanding any provision in this Agreement to the contrary, if any law
      or
      regulation of any governmental authority having jurisdiction in the matter
      requires the Company, the Committee or the Grantee to take any action or refrain
      from action in connection with the delivery of shares of Restricted Stock under
      this Agreement, or to delay such delivery, then the delivery of such shares
      of
      Restricted Stock shall be deferred until such action has been taken or such
      restriction on action has been removed.

    7.    General
      Provisions.
      The
      Grantee acknowledges that he has read, understands and agrees with all of the
      provisions in this Agreement and the Plan, including (but not limited to) the
      following:

    (a)    Authority
      of Committee.
      The
      Committee shall have all the authority set forth in the Plan including, but
      not
      limited to, the authority to administer the Agreement and the Plan; to make
      all
      determinations with respect to the construction and application of the
      Agreement, the Plan, and the resolutions of the Board of Directors establishing
      the Plan; to adopt and revise rules relating to the Agreement and the Plan;
      and
      to make other determinations which it believes are necessary or advisable for
      the administration of the Agreement and the Plan. Any dispute or disagreement
      which arises under this Agreement or the Plan shall be resolved by the Committee
      in its absolute discretion. Any such determination, interpretation, resolution,
      or other action by the Committee shall be final, binding and conclusive with
      respect to the Grantee and all other persons affected thereby.

     

    3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)    Notices.
      Any
      notice which is required or permitted under this Agreement shall be in writing
      (unless otherwise specified in the Agreement or in a writing from the Company
      to
      the Grantee), and delivered personally or by mail, postage prepaid, addressed
      as
      follows: (i) if to the Company, at 1411 Third Street, Ste. A, Port Huron,
      Michigan 48060, Attention: Corporate Secretary, or at such other address as
      the
      Company by notice to the Grantee may have designated from time to time; (ii)
      if
      to the Grantee, at the address indicated in the Company's then-current records,
      or at such other address as the Grantee by notice to the Company may have
      designated from time to time. Such notice shall be deemed given upon
      receipt.

    (c)    Taxation.
      The
      ultimate liability for any and all taxes is and remains the Grantee’s
      responsibility and liability and the Company makes no representations or
      undertakings regarding the treatment of any taxes in connection with any aspect
      of the grant under this Agreement, including the grant, vesting and the
      subsequent sale of Restricted Stock acquired under the Plan, and does not commit
      to structure the terms of the grant or any aspect of the Restricted Stock grant
      to reduce or eliminate the Grantee’s liability for any such taxes. The Company
      shall have the power and the right to deduct or withhold, or require the Grantee
      to remit to the Company, an amount to satisfy federal, state and local taxes
      required to be withheld with respect to the Restricted Stock. 

    (d)    Nontransferability.
      This
      Agreement and the shares of Restricted Stock granted to the Grantee shall be
      nontransferable and shall not be sold, hypothecated or otherwise assigned or
      conveyed by the Grantee to any other person, except as specifically permitted
      in
      this Agreement. No assignment or transfer of this Agreement or the rights
      represented thereby, whether voluntary or involuntary, or by operation of law
      or
      otherwise, shall vest in the assignee or transferee any interest or right
      whatsoever, except as specifically permitted in this Agreement. The Agreement
      shall terminate, and be of no force or effect, immediately upon any attempt
      to
      assign or transfer the Agreement or any of the shares of Restricted Stock to
      which the Agreement applies.

     

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    (e)    Designation
      of Beneficiary. Notwithstanding
      anything in Section 7(d) to the contrary, the Grantee may designate a person
      or
      persons to receive, in the event of his death, any rights to which he would
      be
      entitled under this Agreement. Such a designation shall be filed with the
      Company in accordance with uniform procedures specified by the Committee. The
      Grantee may change or revoke a Beneficiary designation at any time by filing
      a
      written statement of such change or revocation with the Company in accordance
      with uniform procedures specified by the Committee. No Beneficiary designation
      or change of Beneficiary designation will be effective until notice thereof
      is
      received. If Grantee fails to designate a Beneficiary or if the Beneficiary
      predeceases the Grantee, the legal representative of Grantee's estate shall
      be
      deemed to be his Beneficiary for purposes of this Agreement. The Grantee is
      not
      required to obtain spousal consent to designate someone other than the spouse
      as
      beneficiary.

    (f)    No
      Shareholder Rights.
      Except
      as otherwise specifically provided in Section 4 of this Agreement (regarding
      shareholder rights of the Grantee with respect to shares of Restricted Stock),
      until the shares of Restricted Stock have vested in accordance with the
      provisions of Section 2 of this Agreement, the Grantee shall have no rights
      as a
      shareholder of the Company and shall not be deemed to be a shareholder of the
      Company for any purpose. 

    (g)    No
      Right to Continue as a Director.
      This
      Agreement shall not be deemed to limit or restrict the right of the Company
      to
      terminate the Grantee's service as a Director at any time, for any reason,
      with
      or without cause, or to limit or restrict the right of the Grantee to terminate
      his service as a Director of the Company at any time.

    (h)    Amendment
      or Termination.
      This
      Agreement may be amended or terminated at any time by the mutual agreement
      and
      written consent of the Grantee and the Committee, but only to the extent
      permitted under the Plan. 

     

    5

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)    Governing
      Instrument.
      This
      Agreement is subject to all terms and conditions of the Plan and shall at all
      times be interpreted in a manner that is consistent with the intent, purposes,
      and specific language of the Plan.

    (j)    Severability.
      If any
      provision of this Agreement should be held illegal or invalid for any reason
      by
      the Committee or court of applicable jurisdiction, such determination shall
      not
      affect the other provisions of this Agreement, and it shall be construed as
      if
      such provision had never been included herein. 

    (k)    Headings/Gender.
      Headings in this Agreement are for convenience only and shall not be construed
      to be part of this Agreement. Any reference to the masculine, feminine or neuter
      gender shall be a reference to other genders as appropriate.

    (l)    Governing
      Law.
      This
      Agreement shall be construed, and its provisions enforced and administered,
      in
      accordance with the laws of the State of Michigan and, where applicable, federal
      law.

    8.    Definitions.
      All
      capitalized terms shall have the meaning set forth in the Plan or, if not
      defined in the Plan, shall be defined as set forth below. 

    (a)    Change
      in Control has
      the
      meaning specified in Section 9(c) of the Plan.

    (b)    Company
      means
      SEMCO Energy, Inc., its successors and assigns, and any other company or other
      entity, whether foreign or domestic, in which the Company has or obtains,
      directly or indirectly, a proprietary interest of more than eighty percent
      (80%)
      by reason of stock ownership or otherwise. 

    (c)    Director
      means a
      member of the Board of Directors of the Company.

    (d)    Disability
      Retirement Date
      means
      the date of the Grantee’s termination from service as a Director due to
      Disability. For purposes of this Agreement, Disability means the inability
      of
      the Grantee to adequately perform his regular duties as a Director for the
      Company as a result of sickness or an accident for a period of one hundred
      eighty (180) days. 

    (e)    Grant
      means
      the
      number of shares of Restricted Stock specified on the first page of this
      Agreement.

     

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    (f)    Grant
      Date
      means
      the date set forth on the first page of this Agreement.

    (g)    Grantee
      means
      the Eligible Person named on the first page of this Agreement. 

    (h)    Plan
      means
      the SEMCO Energy, Inc.2004 Stock Award and Incentive Plan, as adopted by the
      Board of Directors on March 12, 2004, and approved by the Company’s shareholders
      on May 24, 2004, and as amended from time to time.

    (i)    Retirement
      Date
      means
      the date of the Grantee’s termination of service as a Director on or after the
      date the Grantee attains age 60.

    (j)    Vesting
      Date
      means
      any one of the dates upon which the restrictions contained in Section 3 of
      this
      Agreement lapse with respect to the shares of Restricted Stock granted to the
      Grantee under this Agreement, which date shall be determined in accordance
      with
      Section 2 of this Agreement.

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
      duly authorized officers under its corporate seal, and the Grantee has executed
      this Agreement, as of the day and year first above written.

     

    

    
      
        	 	 	
                SEMCO
                  ENERGY, INC.

                 

                By:________________________________ 

              
	
                ATTEST:

                 

                __________________________________

                Corporate
                  Secretary 

              	 	 
	 	 	
                GRANTEE

                 

                ___________________________________

                Name:______________________________ 

              

      

    

     

     

    7Exhibit 10.3 - Form of Restricted Stock Agr for Chairmen

    Exhibit
      10.3 - Form of Restricted Stock Grant Agreement for Chairmen

    

    SEMCO
      ENERGY, INC. 

    2004
      Stock Award and Incentive Plan

    

    RESTRICTED
      STOCK GRANT AGREEMENT FOR CHAIRMEN

    

    

    
      	
               

              Grantee:

            	
               

              [Name]

            
	
              Restricted
                Stock Grant:

            	
              [Number]
                Shares 

            
	
              Grant
                Date:

            	
              [Date]

            

    

    

    THIS
      RESTRICTED STOCK GRANT AGREEMENT is effective as of the Grant Date stated above,
      by and between SEMCO Energy, Inc. and the Grantee.

    WHEREAS,
      the shares of Restricted Stock described in this Agreement have been granted
      pursuant to, and are governed by, the Plan;

    NOW,
      THEREFORE, the Company and the Grantee hereby agree as follows:

    1.    Restricted
      Stock Grant.
      Subject
      to the terms and conditions of this Agreement, the Company hereby grants to
      Grantee the number of shares of Restricted Stock as specified
      above.

    2.    Vesting. 

    (a)    Regular
      Vesting Date.
      Except
      as stated in Section 2(b) of this Agreement, the Grantee shall become one
      hundred percent (100%) vested in the shares of Restricted Stock granted pursuant
      to this Agreement on the third anniversary of the Grant Date.

    (b)    Accelerated
      Vesting Dates.
      Notwithstanding the vesting requirements specified in Section 2(a) of this
      Agreement, all shares of Restricted Stock shall become 100% vested upon the
      earliest to occur of the following Vesting Dates:

    (i)    the
      Grantee’s Retirement Date;

    
       
        (ii)   the
        Grantee’s Disability Retirement Date;

      
         (iii)    the
          date
          of the Grantee’s death prior to his termination of service as a Director;
          or

      

    

     (iv)    the
      date
      of a Change in Control.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.    Restrictions/Forfeitures.
      All
      shares of Restricted Stock shall be subject to the following restrictions until
      their Vesting Date:

    (a)    Forfeiture
      on Termination.
      Subject
      to Section 2 of this Agreement, if the Grantee’s service as a Director
      terminates for any reason prior to the Vesting Date for the shares of Restricted
      Stock, the Grantee shall forfeit all rights with respect to such unvested shares
      of Restricted Stock, and the book entry account shall be null, void and of
      no
      effect as of the date the Grantee’s service as a Director
      terminates.

    (b)    Nontransferability.
      Prior
      to the Vesting Date with respect to the Restricted Stock, such shares of
      Restricted Stock shall be nontransferable and may not be sold, hypothecated
      or
      otherwise assigned or conveyed by a Grantee to any party, except as otherwise
      provided in Section 11(c) of the Plan.

    (c)    Additional
      Shares.
      Any
      shares of Common Stock accruing to Restricted Stock as a result of any
      adjustment under Section 11(c) of the Plan will be subject to the same
      restrictions (and have the same Vesting Dates) as the shares of Restricted
      Stock
      to which they accrue.

    4.    Delivery of Shares.
      

    (a)    Granted
      Shares.
      The
      shares of Restricted Stock awarded under this Plan shall be held in a book
      entry
      account for the Grantee by a broker-dealer designated by the Company and shall
      be registered in his name. Such shares of Restricted Stock shall be subject
      to
      the restrictions described Sections 2 and 3 of this Agreement until the Vesting
      Date for such shares of Restricted Stock, and the book entry account evidencing
      the shares of Restricted Stock shall bear a legend noticing those restrictions
      either specifically or by reference to the provisions of this Agreement. Such
      shares of Restricted Stock, when issued in accordance with this Agreement,
      shall
      be deemed to be fully paid and nonassessable. The Grantee shall supply the
      Company with an executed stock power or similar authorization with respect
      to
      any shares of Restricted Stock held in a book entry account.

    2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)    Vested
      Shares.
      Within
      ten (10) business days after the date on which the shares of Restricted Stock
      have vested pursuant to Section 2 of this Agreement, the restrictions on the
      book entry account holding such shares shall be removed and the stock power
      or
      similar authorization described in Section 4(a) of this Agreement will be
      destroyed. 

    5.    Ownership
      Rights.
      Except
      as otherwise provided in Sections 3 and 4, upon the grant of the shares of
      Restricted Stock under this Agreement, the Grantee shall exercise all ownership
      rights (including, without limitation, the right to vote and the right to
      receive dividends) with respect to such shares, provided that voting and
      dividend rights with respect to the shares will be exercisable only if the
      record date for determining shareholders entitled to vote, or to receive
      dividends, falls on or after the Grant Date and before the effective date of
      a
      forfeiture of Restricted Stock under Section 4 of this Agreement. The Grantee
      shall have the same rights with respect to any shares of Common Stock accruing
      to Restricted Stock as a result of any adjustment under Section 11(c) of the
      Plan. 

    6.    Deferral
      of Exercise or Delivery of Shares.
      Notwithstanding any provision in this Agreement to the contrary, if any law
      or
      regulation of any governmental authority having jurisdiction in the matter
      requires the Company, the Committee or the Grantee to take any action or refrain
      from action in connection with the delivery of shares of Restricted Stock under
      this Agreement, or to delay such delivery, then the delivery of such shares
      of
      Restricted Stock shall be deferred until such action has been taken or such
      restriction on action has been removed.

    7.    General
      Provisions.
      The
      Grantee acknowledges that he has read, understands and agrees with all of the
      provisions in this Agreement and the Plan, including (but not limited to) the
      following:

    (a)    Authority
      of Committee.
      The
      Committee shall have all the authority set forth in the Plan including, but
      not
      limited to, the authority to administer the Agreement and the Plan; to make
      all
      determinations with respect to the construction and application of the
      Agreement, the Plan, and the resolutions of the Board of Directors establishing
      the Plan; to adopt and revise rules relating to the Agreement and the Plan;
      and
      to make other determinations which it believes are necessary or advisable for
      the administration of the Agreement and the Plan. Any dispute or disagreement
      which arises under this Agreement or the Plan shall be resolved by the Committee
      in its absolute discretion. Any such determination, interpretation, resolution,
      or other action by the Committee shall be final, binding and conclusive with
      respect to the Grantee and all other persons affected thereby.

    3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)    Notices.
      Any
      notice which is required or permitted under this Agreement shall be in writing
      (unless otherwise specified in the Agreement or in a writing from the Company
      to
      the Grantee), and delivered personally or by mail, postage prepaid, addressed
      as
      follows: (i) if to the Company, at 1411 Third Street, Ste. A, Port Huron,
      Michigan 48060, Attention: Corporate Secretary, or at such other address as
      the
      Company by notice to the Grantee may have designated from time to time; (ii)
      if
      to the Grantee, at the address indicated in the Company's then-current records,
      or at such other address as the Grantee by notice to the Company may have
      designated from time to time. Such notice shall be deemed given upon
      receipt.

    (c)    Taxation.
      The
      ultimate liability for any and all taxes is and remains the Grantee’s
      responsibility and liability and the Company makes no representations or
      undertakings regarding the treatment of any taxes in connection with any aspect
      of the grant under this Agreement, including the grant, vesting and the
      subsequent sale of Restricted Stock acquired under the Plan, and does not commit
      to structure the terms of the grant or any aspect of the Restricted Stock grant
      to reduce or eliminate the Grantee’s liability for any such taxes. The Company
      shall have the power and the right to deduct or withhold, or require the Grantee
      to remit to the Company, an amount to satisfy federal, state and local taxes
      required to be withheld with respect to the Restricted Stock. 

    (d)    Nontransferability.
      This
      Agreement and the shares of Restricted Stock granted to the Grantee shall be
      nontransferable and shall not be sold, hypothecated or otherwise assigned or
      conveyed by the Grantee to any other person, except as specifically permitted
      in
      this Agreement. No assignment or transfer of this Agreement or the rights
      represented thereby, whether voluntary or involuntary, or by operation of law
      or
      otherwise, shall vest in the assignee or transferee any interest or right
      whatsoever, except as specifically permitted in this Agreement. The Agreement
      shall terminate, and be of no force or effect, immediately upon any attempt
      to
      assign or transfer the Agreement or any of the shares of Restricted Stock to
      which the Agreement applies.

    4

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)    Designation
      of Beneficiary. Notwithstanding
      anything in Section 7(d) to the contrary, the Grantee may designate a person
      or
      persons to receive, in the event of his death, any rights to which he would
      be
      entitled under this Agreement. Such a designation shall be filed with the
      Company in accordance with uniform procedures specified by the Committee. The
      Grantee may change or revoke a Beneficiary designation at any time by filing
      a
      written statement of such change or revocation with the Company in accordance
      with uniform procedures specified by the Committee. No Beneficiary designation
      or change of Beneficiary designation will be effective until notice thereof
      is
      received. If Grantee fails to designate a Beneficiary or if the Beneficiary
      predeceases the Grantee, the legal representative of Grantee's estate shall
      be
      deemed to be his Beneficiary for purposes of this Agreement. The Grantee is
      not
      required to obtain spousal consent to designate someone other than the spouse
      as
      beneficiary.

    (f)    No
      Shareholder Rights.
      Except
      as otherwise specifically provided in Section 4 of this Agreement (regarding
      shareholder rights of the Grantee with respect to shares of Restricted Stock),
      until the shares of Restricted Stock have vested in accordance with the
      provisions of Section 2 of this Agreement, the Grantee shall have no rights
      as a
      shareholder of the Company and shall not be deemed to be a shareholder of the
      Company for any purpose. 

    (g)    No
      Right to Continue as a Director.
      This
      Agreement shall not be deemed to limit or restrict the right of the Company
      to
      terminate the Grantee's service as a Director at any time, for any reason,
      with
      or without cause, or to limit or restrict the right of the Grantee to terminate
      his service as a Director of the Company at any time.

    (h)    Amendment
      or Termination.
      This
      Agreement may be amended or terminated at any time by the mutual agreement
      and
      written consent of the Grantee and the Committee, but only to the extent
      permitted under the Plan. 

    5

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)    Governing
      Instrument.
      This
      Agreement is subject to all terms and conditions of the Plan and shall at all
      times be interpreted in a manner that is consistent with the intent, purposes,
      and specific language of the Plan.

    (j)    Severability.
      If any
      provision of this Agreement should be held illegal or invalid for any reason
      by
      the Committee or court of applicable jurisdiction, such determination shall
      not
      affect the other provisions of this Agreement, and it shall be construed as
      if
      such provision had never been included herein. 

    (k)    Headings/Gender.
      Headings in this Agreement are for convenience only and shall not be construed
      to be part of this Agreement. Any reference to the masculine, feminine or neuter
      gender shall be a reference to other genders as appropriate.

    (l)    Governing
      Law.
      This
      Agreement shall be construed, and its provisions enforced and administered,
      in
      accordance with the laws of the State of Michigan and, where applicable, federal
      law.

    8.    Definitions.
      All
      capitalized terms shall have the meaning set forth in the Plan or, if not
      defined in the Plan, shall be defined as set forth below. 

    (a)    Chairman
      means
      Chairman of the Board of Directors of the Company or Chairman of a Committee
      of
      the Board of Directors of the Company.

    (b)    Change
      in Control has
      the
      meaning specified in Section 9(c) of the Plan.

    (c)    Company
      means
      SEMCO Energy, Inc., its successors and assigns, and any other company or other
      entity, whether foreign or domestic, in which the Company has or obtains,
      directly or indirectly, a proprietary interest of more than eighty percent
      (80%)
      by reason of stock ownership or otherwise. 

    (d)    Director
      means a
      member of the Board of Directors of the Company.

    (e)    Disability
      Retirement Date
      means
      the date of the Grantee’s termination from service as a Director due to
      Disability. For purposes of this Agreement, Disability means the inability
      of
      the Grantee to adequately perform his regular duties as a Director for the
      Company as a result of sickness or an accident for a period of one hundred
      eighty (180) days. 

    6

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f)    Grant
      means
      the
      number of shares of Restricted Stock specified on the first page of this
      Agreement.

    (g)    Grant
      Date
      means
      the date set forth on the first page of this Agreement.

    (h)    Grantee
      means
      the Eligible Person named on the first page of this Agreement. 

    (i)    Plan
      means
      the SEMCO Energy, Inc.2004 Stock Award and Incentive Plan, as adopted by the
      Board of Directors on March 12, 2004, and approved by the Company’s shareholders
      on May 24, 2004, and as amended from time to time.

    (j)    Retirement
      Date
      means
      the date of the Grantee’s termination of service as a Director on or after the
      date the Grantee attains age 60.

    (k)    Vesting
      Date
      means
      any one of the dates upon which the restrictions contained in Section 3 of
      this
      Agreement lapse with respect to the shares of Restricted Stock granted to the
      Grantee under this Agreement, which date shall be determined in accordance
      with
      Section 2 of this Agreement.

    IN
      WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
      duly authorized officers under its corporate seal, and the Grantee has executed
      this Agreement, as of the day and year first above written.

     

    
 

    
      	 	 	
              SEMCO
                ENERGY, INC.

               

              By:______________________________ 

            
	
              ATTEST:

               

              ________________________________

              Corporate
                Secretary 

            	 	 
	 	 	
              GRANTEE

               

              _________________________________

              Name:____________________________ 

            

    

     

     

     

    7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]