Document:

ex10-5.htm

    

      Exhibit
10.5

      

      THE LACLEDE
GROUP

      MANAGEMENT CONTINUITY
PROTECTION PLAN

      (as
of January 1, 2005)

      

      
        
          
            
              
                	
                        I.

                      	
                        Participants

                      
	 
      	 
      
	 
      	
                        Participants
      shall include all Officers of The Laclede Group, Inc. (the “Company”) and
      Laclede Gas Company as well as certain other key officers of other Company
      subsidiaries as may be determined from time to time.  It is
      contemplated that the features set forth below would be incorporated in
      agreements to be entered into between the Company and each of such
      officers.

                      
	 
      	 
      
	
                        II.

                      	
                        Change In Control

                      
	 
      	 
      
	 
      	
                        Change
      In Control occurs if and when any “person” (as such term is used in
      Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) is or
      becomes a beneficial owner, directly or indirectly, of securities of the
      Company representing more than fifty percent (50%) of the combined voting
      power of the Company’s then outstanding securities or when any such person
      becomes a beneficial owner, directly or indirectly, of at least thirty
      percent (30%) and no more than fifty percent (50%) of such securities and
      a majority of the outside members of the Company’s Board of Directors
      decides that a de facto Change in Control has occurred.

                      
	 
      	 
      
	
                        III.

                      	
                        Termination For “Cause”

                      
	 
      	 
      
	 
      	
                        Termination
      for “Cause” shall be limited to, and include, only the following:
      (1) the irreversible incapacity or disability of a Participant for a
      period of six (6) months which renders him unable to perform the services
      for which he is employed; (2) any conduct of Participant in the
      performance of the services to be rendered by him and for which he has
      been employed which involves moral turpitude on his part; or (3) the death
      of the Participant.

                      
	 
      	 
      
	
                        IV.

                      	
                        Benefits

                      
	 
      	 
      
	 
      	
                        If,
      following a Change in Control, the Participant has experienced a
      separation from service on account of his or her termination of employment
      (other than for “Cause”), resignation or retirement, such Participant
      shall be entitled to receive at such time (or such other time as provided
      below) a non-discounted lump sum in an amount equal to the “average annual
      compensation” as such term is referred to in Treasury Regulation Section
      1.280G-1 Question and Answer 34 and such other guidance promulgated under
      Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)
      paid to Participant for the five-year period (or if the Participant is
      employed by the Company for less than five years, such
    shorter

                      

              

            

          

        

      

      

      
        
           

        

        
          1

           

        

        
           

        

      

      

      

      
        
          	 
      	
                  period)
      immediately preceding such termination of employment, resignation or
      retirement (each a “separation from service” as shall be determined under
      Section 409A of the Internal Revenue Code of 1986, as amended (the
      “Code”), and Final Treasury Regulation 1.409A-1(h), including the default
      presumptions thereof), multiplied by: (1) in the case of the President or
      of the Executive Vice President, 2.99 times; or (2) in the case of all
      other Participants, 2.00 times.  In the event Participant
      remains employed by the Company1 subsequent to the Change In
      Control for a period beyond six (6) months following such Change In
      Control, the above benefit shall be reduced as follows: (1) in the case of
      the President or of the Executive Vice President, for each month beyond
      six months he is employed with the Company subsequent to a Change In
      Control the benefit shall be reduced 1/48; or (2) in the case of all other
      Participants, such benefit shall be reduced for each month beyond six
      months he is employed with the Company subsequent to a Change In Control
      by 1/36.

                
	 
      	 
      
	 
      	
                  However,
      notwithstanding the above, in no event shall the benefit be greater than
      an amount equal to the average monthly compensation paid to Participant
      for the five-year period (or if employed by the Company for less than five
      years, such shorter period) immediately preceding such separation from
      service multiplied by the number of months remaining from such date of
      separation from service until the date upon which the Participant would
      have been 65 years of age.

                
	 
      	 
      
	 
      	
                  Notwithstanding
      any provision herein to the contrary, if the Company determines that
      Participant is a “specified employee” as defined in Section
      409A(a)(2)(B)(i) of the Code and regulations and other guidance issued
      thereunder, then such benefit (or portion thereof) shall be paid no
      earlier than the first day of the seventh month following the month of
      Participant’s separation from service (with the first such payment being a
      lump sum equal to the aggregate benefit the Participant would have
      received during such period if no such payment delay had been imposed,
      together with interest on such delayed amount during the period of such
      restriction at a rate, per annum, equal to the applicable federal
      short-term rate (compounded monthly) in effect under Section 1274(d) of
      the Code at the time of such separation from service).

                
	 
      	 
      
	 
      	
                  Moreover,
      notwithstanding the above, to the extent, if any, that any payment or
      distribution of any portion of the benefit described above (together with
      any other benefit under any other plan, policy or arrangement) would
      trigger any adverse tax consequences under Section 280G of the Code, or
      Section 4999 of said Code, such as loss of deductions to the Company, or
      the payment of an additional excise tax
by

                

        

      

      

      

        

      

       

           
1         For purposes of this Plan,
employment with the Company shall also include employment with any successor of
the Company (or with any Affiliate of the Company, or  Affiliate of such
successor) following a Change in Control.

      

      
        
           

        

        
          2

           

        

        
           

        

      

      

      
        
          
            
              
                	 
      	
                        the
      Participant, or both, then the benefit hereunder (and to the extent
      necessary, under any other plan, policy, or arrangement proving for
      “parachute payments” as defined under Code Section 280G) shall be reduced
      (on a pro rata basis for all such plans, policies, or arrangements) to $1
      less than that extent, and to no greater extent.  Parachute
      payments and/or any cutback amount and any other determination with
      respect to Code Section 280G shall be determined by the Company in good
      faith.

                      
	 
      	 
      
	
                        V.

                      	
                        Amendment/Termination of the
      Plan

                      
	 
      	 
      
	 
      	
                        The
      Company may amend this Plan at any time, and from time to time; provided,
      however, that no amendment adopted after the effective date of a Change in
      Control shall have the effect of (i) removing a Participant from this
      Plan, (ii) adding conditions for participation or the entitlement to
      receive benefits under this Plan, (iii) reducing the amount of benefits
      payable to a Participant, or (iv) otherwise restricting a Participant’s
      right to receive benefits under the Plan, except as may otherwise be
      required to conform such payments to the requirements of Section 409A of
      the Code.  The Company’s Board of Directors may terminate the
      Plan at any time prior to a Change in Control.  The Plan may not
      be terminated after the effective date of a Change in Control, except that
      the Plan shall automatically terminate upon payment of all benefits due
      after such Change in Control.  Notwithstanding the above, the
      Plan may not be terminated and payments accelerated thereunder contrary to
      the provisions of Section 409A of the Code including, without limitation,
      Final Treasury Regulation Section 1.409A-3(j)(4)(ix) with reference to
      Final Treasury Regulation Section 1.409A-1(g).

                      
	 
      	 
      
	
                        VI.

                      	
                        Administration

                      
	 
      	 
      
	 
      	
                        The
      Plan shall be administered by a person or committee appointed by the
      Company’s Board of Directors (the “Plan Administrator”).  In the
      absence of such appointment, the Plan Administrator shall be the Board of
      Directors.

                      
	 
      	 
      
	
                        VII.

                      	
                        Claim for Benefits

                      
	 
      	 
      
	 
      	
                        Any
      claim for benefits under this Plan shall be submitted to the Plan
      Administrator.  If the Plan Administrator denies the claim for
      benefits, in whole or in part, the Plan Administrator shall notify the
      claimant of the adverse benefit determination no later than
      ninety (90) days after receipt of the claim by the Plan, unless the
      Plan Administrator determines that special circumstances require an
      extension of time, which may not exceed a further ninety (90) days,
      for processing the claim and so notifies the claimant in writing prior to
      the termination of the initial 90 day period.  In the event that
      a claim for benefits under this Plan has been denied by the Plan
      Administrator, the decision shall be subject to review by the Company upon
      written request of the claimant made to the Plan Administrator within
      sixty (60)

                      

              

            

          

        

      

      
        	
                 
      

              	 

      

      
        
           

        

        
          3

           

        

        
           

        

      

      

      
        
          
            
              
                
                  	 
      	
                          days
      of receipt by the claimant of notice of such denial.  Upon
      request and free of charge, the Company shall provide the claimant with
      reasonably access to all pertinent information, documents and records with
      respect to the claim.  The decision of the Company upon review
      shall be in writing and shall state the reasons for the decision and the
      provisions of this Plan on which the decision is based.  Such
      decision shall be made within sixty (60) days after the Company’s
      receipt of written request for such review unless a hearing is
      necessitated to determine the facts and circumstances, in which event a
      decision shall be rendered as soon as possible, but not later than one
      hundred and twenty (120) days after receipt of the claimant’s written
      request for review.  The decision of the Company upon review
      shall be final and binding on all persons.

                        
	 
      	 
      
	
                          VIII.

                        	
                          Severability and Applicable
    Law

                        
	 
      	 
      
	 
      	
                          The
      illegality of any provision of this Plan shall not affect the
      enforceability of any other provision of this Plan.  The Plan
      shall be construed in accordance with and governed by the substantive laws
      of the State of Missouri without regard to conflict of law
      rules.

                        
	 
      	 
      
	
                          IX.

                        	
                          Withholding

                        
	 
      	 
      
	 
      	
                          All
      payments made under the Plan to a Participant or his or her beneficiary
      shall be subject to withholding of such amounts as the Company reasonably
      may determine are required to be withheld pursuant to any applicable
      Federal, state, local, or foreign law or regulation.

                        
	 
      	 
      
	
                          X.

                        	
                          Miscellaneous

                        
	 
      	 
      
	 
      	
                          For
      purposes of the Plan, “Affiliate” shall mean
      (i) any person or entity that directly or indirectly controls, is
      controlled by or is under common control with the applicable entity and/or
      (ii) to the extent provided by the Company, any person or entity in
      which such entity has a significant interest.  The term
      “control” (including, with correlative meaning, the terms “controlled by”
      and “under common control with”), as applied to any person or entity,
      means the possession, directly or indirectly, of the power to direct or
      cause the direction of the management and policies of such person or
      entity, whether through the ownership of voting or other securities, by
      contract or otherwise; provided,
      however, with respect to any
      deferrals subject to Section 409A of the Code, the term “Affiliate” shall
      mean any member of the applicable entity’s control group within the
      meaning of Final Treasury Regulation Section 1.409A-1(h)(3), as such may
      be modified or amended from time to time, by applying the “at least 50
      percent” provisions
thereof.

                        

                

              

            

          

        

      

      

      
        
           

        

        
          4

           

        

        
           

        

      

      

      
        
          	 
      	
                  The
      rights of Participants and their beneficiaries to benefits under the Plan
      shall be solely those of unsecured general creditors of the
      Company.  The Plan constitutes merely a promise by the Company
      to make benefit payments in the future.  The Plan is intended to
      be unfunded for purposes of the Code and Title I of the Employee
      Retirement Income Security Act of 1974, as
      amended.  Notwithstanding the foregoing, the Company may
      contribute to a trust fund under a “rabbi trust” agreement between the
      Company and a banking organization, if such a trust fund is hereafter
      established, and payments under the Plan may be made from any such trust
      fund.  Any asset acquired or held by the Company in connection
      with the Company’s liabilities under the Plan shall not be deemed to be
      security for the performance of the Company’s obligations under this
      Plan.

                
	 
      	 
      
	 
      	
                  The
      rights and interests of Participants and their beneficiaries to benefit
      payments under the Plan shall not be subject in any manner to
      anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
      attachment or garnishment by creditors of the Participants or their
      beneficiaries, and any such rights and interests under the Plan shall not
      be liable for or subject to any obligation or liability of the Participant
      or beneficiary.

                
	 
      	 
      
	 
      	
                  Notwithstanding
      any other provision of the Plan, the Plan is intended to comply with
      Section 409A of the Code and shall at all times be interpreted in
      accordance with such intent that amounts that may become payable to
      Participant shall not be taxable to such Participants until such amounts
      are paid in accordance with the terms of the Plan.  To the
      extent that any provision of the Plan violates Section 409A of the Code
      and the Final Treasury Regulations promulgated thereunder such that
      amounts would be taxable to a Participant prior to payment or otherwise
      subject to penalties under Section 409A of the Code, such provision shall
      be automatically reformed or stricken to preserve the intent
      hereof.  Notwithstanding the foregoing, in no event will the
      Company or any of its Affiliates have any liability for any failure of the
      Plan to satisfy Section 409A of the Code and such parties do not guarantee
      that the Plan complies with Section 409A of the
  Code.

                

        

      

      

      
        
           

        

        
          5ex10-5a.htm

    Exhibit
10.5a

    

    MANAGEMENT CONTINUITY
PROTECTION AGREEMENT

    

    This AGREEMENT is made as of the ___
day of _______________, 20__, between THE LACLEDE GROUP, INC., a Missouri
corporation (the “Company”), and ___________________________________ (the
“Executive”).

    WHEREAS, upon recommendation of its
Chairman, the Board of Directors of the Company has adopted a Management
Continuity Protection Plan (the “Plan”) for all of the officers of the Company
and of Laclede Gas Company as well as certain other officers of the Company
subsidiaries as determined from time to time.

    WHEREAS, the Plan was adopted in the
best interests of the Company and its stockholders for the purpose of
reinforcing and encouraging the continued attention and dedication of the Plan
Participants, including the Executive, to their assigned duties without
distraction in potentially disturbing circumstances arising from the possibility
of any future change in control of the Company; and

    WHEREAS, as contemplated by the Plan,
the Executive and the Company are executing this Management Continuity
Protection Agreement; and

    WHEREAS, subject only to the
“Termination Benefits” (as hereinafter defined) payable hereunder following
certain “Employment Terminations” (as hereinafter defined) subsequent to a
“Change in Control” (as defined in the Plan), the execution of this Agreement by
the Executive and the Company does not give rise to a claim by the Executive
that the Executive is entitled to continued employment with the
Company.

    NOW, THEREFORE, in consideration of the
mutual agreements contained herein, the Company and the Executive agree as
follows:

    
      
         

      

      
        1

         

      

      
         

      

    

    

    1.           Term of
Agreement.  This Agreement shall terminate, except to the
extent that any obligation of the Company hereunder remains unpaid as of such
time, upon the earlier of: (a) the effective date of the Executive’s (i)
termination other than for Cause (as defined in the Plan), (ii) resignation, or
(iii) retirement with respect to the Company; provided, that, an event in
(i)- (iii) correlates with a “separation from service” under Final Treasury
Regulation Section 1.409A-1(h) (an event in (i)- (iii) hereinafter called an
“Employment Termination”), if such Employment Termination occurs prior to a
Change in Control; (b) the effective date of the Executive’s Termination for
Cause (as defined in the Plan); (c) the date the Executive ceases to serve as an
officer of the Company or any of its Affiliates prior to a Change in Control;
(d) forty-two (42) months after a Change in Control, if the Executive’s
Employment Termination has not yet occurred as of the end of such forty-two (42)
months; or (e) the date the Company’s Board of Directors terminates the Plan if
and only if such termination is prior to a Change in Control.  For
purposes of this Agreement, employment with the Company shall also include
employment with any successor of the Company (or with any Affiliate of the
Company, or Affiliate of such successor) following a Change in
Control.  No benefits shall be payable hereunder unless there shall
have been a Change in Control as defined in the Plan, and Executive’s Employment
Termination shall thereafter have occurred in accordance with Section 3
hereof.

    2.           Termination Following Change
in Control.  If a Change in Control shall have occurred, the
Executive shall be entitled to the benefits provided in Section 3 hereof upon
the subsequent Employment Termination of the Executive.

    
      
         

      

      
        2

         

      

      
         

      

    

    

    3.           Benefits upon Employment
Termination.  (a) If, after a Change in Control shall have
occurred, there is a subsequent Employment Termination of the Executive, prior
to the expiration of the forty-two (42) month period specified in Section 1(b)
hereof, the Executive shall, subject to the provisions of Sections 3(b), 3(c)
and 4 hereof, be entitled to receive, upon the effective date of such Employment
Termination (or such other time as provided below and/or in the Plan in the
event of a separation of service of a “specified employee”), a non-discounted
lump sum amount (hereinafter called the “Termination Benefits”) equal to the
average annual compensation (as referenced in the Plan) of the Executive for the
five (5) year period (or if not employed for such five (5) year period, such
shorter period) immediately preceding the Executive’s Employment Termination
with the Company (as described in Section 280G(b)(3)(A) of the Internal Revenue
Code of 1986, as amended (the “Code”)), multiplied by 2.00.1   Notwithstanding any provision
herein to the contrary, if the Company determines that the Executive is a
“specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and
regulations and other guidance issued thereunder, then payment of such amount
(or portion thereof) shall commence no earlier than the first day of the seventh
month following the month Executive’s “separation from service” (as referenced
below) occurs (with the first such payment being a lump sum equal to the
aggregate amount the Executive would have received during such period if no such
payment delay had been imposed, together with interest on such delayed amount
during the period of such restriction at a rate, per annum, equal to the
applicable federal short-term rate (compounded monthly) in effect
under

    

      

    

      
      1           2.99 for President and
EVP.

    

    
      
         

      

      
        3

         

      

      
         

      

    

    Section
1274(d) of the Code at the time of such separation from service).  For
purposes of this Agreement, an “Employment Termination” shall only have occurred
if a “separation from service” has occurred as defined in Final Treasury
Regulation 1.409A-1(h), including the default presumptions thereof.

    (b)           In
the event the Executive remains employed with the Company (which

    for
this purpose, shall include employment with the Company, any of its Affiliates,
its successor or an Affiliate of its successor) subsequent to a Change in
Control beyond six (6) months following such Change in Control, the Termination
Benefits shall be reduced by 1/36 for each month beyond six months that the
Executive is so employed subsequent to a Change in Control.2

    (c)           Notwithstanding
the provisions of paragraph (a) and (b) of this Section 3 above, in no event
shall the Termination Benefits be greater than an amount equal to the average
monthly compensation of the Executive for the five (5) year period (or such
shorter period, as set forth above) immediately preceding cessation of
employment with the Company referred to in paragraph (a) of this Section 3
above, multiplied by the number of months remaining from such date of cessation
of employment until the date upon which the Executive would have been sixty-five
(65) years of age.

    4.           Limitation Upon Termination
Benefits Caused by Tax Implications.

    In
the event that any payment or benefit received or to be received by the
Executive in connection with a Change in Control, or the Executive’s Employment
Termination, including all amounts payable pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company (all of
the Termination Benefits, together

    

      

    

      
      2           1/48th for
Pres. or EVP

    

    
      
         

      

      
        4

         

      

      
         

      

    

    with
all of such other payments or benefits being hereinafter called the “Total
Payments”), would not be deductible as a result of Section 280G of the Code, or
would trigger the payment of an additional excise tax by the Executive under
Section 4999 of the Code, the Termination Benefits (or such other Total Payments
to the extent necessary on a pro-rata basis) shall be reduced until no portion
of the Total Payments is rendered non-deductible under Section 280G of the Code
or is subject to the additional excise tax of Section 4999 of the Code, or the
Termination Benefits are reduced to zero.  Parachute payments and/or
any cutback amount, and any other determination with respect to Code Section
280G shall be determined by the Plan Administrator in good faith.

    5.           Non-exclusivity of
Rights.  Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any benefit, bonus, incentive,
or other plan or program provided by the Company and for which the Executive may
qualify, nor shall anything herein limit or otherwise affect such rights as the
Executive may have under any other agreements with the
Company.  Amounts that are vested benefits or that the Executive is
otherwise entitled to receive under any plan or program of the Company shall be
payable in accordance with the terms of such plan or program.

    6.           Right to Terminate
Employment.  The Company expressly confirms and agrees that it
has entered into this Agreement and has assumed the obligations imposed on the
Company hereby in order to induce the Executive to continue employment with the
Company and acknowledges that the Executive is relying upon this Agreement in
such capacity.  Notwithstanding the foregoing, the Company or the
Executive may terminate the employment of the Executive at any time, subject to
the Company’s

    
      
         

      

      
        5

         

      

      
         

      

    

    providing
the benefits specified under this Agreement (including, without limitation,
those benefits referred to in Sections 3 and 5 hereof) in accordance with the
terms hereof.

    7.           Heirs, Successors and
Assigns.  This Agreement shall: (a) inure to the benefit of and
be enforceable by the Executive’s personal or legal representatives, executors,
administrators, heirs, devisees and legatees; and (b) be binding on the
successors and assigns of the Company.

    8.           Severability.  If
any provision or aspect of this Agreement shall be held to be invalid, illegal
or unenforceable: (a) the validity, legality and enforceability of the remaining
provisions or aspects of this Agreement shall not be in any way affected or
impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement shall be construed so as to give effect to the intent manifested by
the provision or aspect held invalid, illegal or unenforceable.

    9.           Miscellaneous.

    (a)  This Agreement shall be
governed by and construed in accordance with the laws of the State of Missouri,
without regard to choice of law principles.  The captions of this
Agreement are not part of the provisions hereof and shall have no force or
effect.  This Agreement may not be amended or modified other than by a
written agreement executed by the parties hereto or by their respective
successors and legal representatives.

    (b)  For the purposes of this
Agreement, notices, demands or other communications necessitated by the
provisions of this Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by United States Post Office Registered
Mail, return receipt requested, postage prepaid and addressed
as

    
      
         

      

      
        6

         

      

      
         

      

    

    follows:  to
the Executive,  ___________________________________, 720 Olive Street,
St. Louis, Missouri 63101; to the Company, The Laclede Group, Inc., Attention:
President, 720 Olive Street, St. Louis, Missouri 63101; or to such other address
as any party may have furnished to the other in writing in accordance therewith,
except that notices of change of address shall be effective only upon
receipt.

    (c)  This Agreement has been
authorized by the Board of Directors of the Company.  It has not been
submitted to a shareholder vote of the Company or its parent company, nor is
such a shareholder vote contemplated or required.  However, if, prior
to a Change in Control, the shareholders of the Company or its parent company
should adopt a shareholder proposal to reject part or all of the provisions of
this Agreement, then the Company shall have the right unilaterally to modify
this Agreement to the extent necessary to comply with such shareholder
vote.

    (d)  This Agreement (and the
Plan, as hereby expressly incorporated herein) contains the entire understanding
of the parties hereto with respect to the subject matter hereof.

    (e)  The Company may withhold
from any amounts payable under this Agreement such federal, state or local taxes
as shall be required to be withheld pursuant to any applicable law or
regulation.

    (f)  Notwithstanding anything
hereinabove, the Plan shall be incorporated by reference into this Agreement,
and any inconsistency between the Plan and this Agreement shall be construed in
favor of the Plan.

    
      
         

      

      
        7

         

      

      
         

      

    

    

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

    

    

    
      	 
      	
              THE
      LACLEDE GROUP, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
                   “Company”

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      
	 
      	 
      	
                   “Executive”

            

    

    

    

    

    
      
         

      

      
        8

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