Document:

firstamendnicorinc06ltinc.htm

    Nicor Inc.

    Form 8-K

    Exhibit 10.8

     

    

      FIRST
AMENDMENT TO

      NICOR
INC. 2006

      LONG
TERM INCENTIVE PLAN

      

      This
First Amendment to the Nicor Inc. 2006 Long Term Incentive Plan (the “Plan”) is
effective as of January 1, 2008, by amending the Plan in the following
particulars:

      

      
        	
                 
      

              	
                “(c)

              	
                Change in
      Control.  For purposes of the Plan, “Change in Control”
      means the occurrence of a “change in the ownership,” a “change in the
      effective control” or a “change in the ownership of a substantial portion
      of the assets” of an entity, as determined in accordance with this
      subsection 10(c).  In determining whether an event shall be
      considered a “change in the ownership,” a “change in the effective
      control” or a “change in the ownership of a substantial portion of the
      assets” of an entity, the following provisions shall
  apply:

              

      

       

      
        	
                                                      (i)  

              	
                A
      “change in the ownership” of the Company shall occur on the date on which
      any one person, or more than one person acting as a group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
      1934, as amended (a “Person”)), acquires ownership of the equity
      securities of the Company that, together with the equity securities held
      by such Person, constitutes more than 50% of the total fair market value
      or total voting power of the Company, as determined in accordance with
      Treas. Reg. §1.409A-3(i)(5)(v).  If a Person is considered
      either to own more than 50% of the total fair market value or total voting
      power of the equity securities of the Company, or to have effective
      control of the Company within the meaning of subsection 10(c)(ii), and
      such Person acquires additional equity securities of the Company, the
      acquisition of additional equity securities by such Person shall not be
      considered to cause a “change in the ownership” of the
      Company.

              

      

       

      
        	
                                                      
      (ii)  

              	
                A
      “change in the effective control” of the Company shall occur on either of
      the following dates:

              

      

       

      
        	
                                                                       
      (A)  

              	
                The
      date on which any Person, acquires (or has acquired during the 12-month
      period ending on the date of the most recent acquisition by such Person)
      ownership of stock of the Company possessing 30% or more of the total
      voting power of the Company’s equity securities, as determined in
      accordance with Treas. Reg. §1.409A-3(i)(5)(vi).  If a Person is
      considered to possess 30% or more of the total voting power of the
      Company’s equity securities, and such Person acquires additional stock of
      the Company, the acquisition of additional stock by such Person shall not
      be 

              

      

       

      
        
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                    considered
      to cause a “change in the effective control” of the Company;
      or

                  

          

           

        

      

      
        	
                                                                       
      (B)  

              	
                The
      date on which a majority of the members of the Board is replaced during
      any 12-month period by directors whose appointment or election is not
      endorsed by a majority of the members of the Board before the date of the
      appointment or election, as determined in accordance with Treas. Reg.
      §1.409A-3(i)(5)(vi).

              

      

       

      
        	
                                                        (iii)  

              	
                A
      “change in the ownership of a substantial portion of the assets” of the
      Company shall occur on the date on which any one Person acquires (or has
      acquired during the 12-month period ending on the date of the most recent
      acquisition by such Person) assets from the Company that have a total
      gross fair market value equal to or more than 40% of the total gross fair
      market value of all of the assets of the Company immediately before such
      acquisition or acquisitions, as determined in accordance with Treas. Reg.
      §1.409A-3(i)(5)(vii).  A transfer of assets shall not be treated
      as a “change in the ownership of a substantial portion of the assets” when
      such transfer is made to an entity that is controlled by the holders of
      the Company’s equity securities, as determined in accordance with Treas.
      Reg. §1.409A-3(i)(5)(vii)(B).

              

      

       

      
        	
                                                       
      (iv)  

              	
                Notwithstanding
      the foregoing, the following acquisitions shall not constitute a Change in
      Control: (A) an acquisition by the Company or entity controlled by the
      Company, or (B) an acquisition by an employee benefit plan (or related
      trust) sponsored or maintained by the Company or any entity controlled by
      the Company.

              

      

       

      
        	
                                                      
      (v)  

              	
                For
      purposes of this subsection 10(c), (A) the term “Company” shall mean Nicor
      Inc. and shall include any Successor to Nicor Inc.; and (B) the term
      “Successor to Nicor Inc.” shall mean any corporation, partnership, joint
      venture or other entity that succeeds to the interests of Nicor Inc. by
      means of a merger, consolidation, or other restructuring that does not
      constitute a Change in Control.”

              

      

       

      
        
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-amendrestaterstrobelnicorinc.htm

    Nicor Inc.

    Form 8-K

    Exhibit 10.9

     

    

      AMENDED AND
RESTATED

      SUPPLEMENTAL RETIREMENT
BENEFIT AGREEMENT

       

      (As
Amended And Restated for Post-2004 Benefits, Effective January 1,
2008)

       

      This
Amended and Restated Supplemental Retirement Benefit Agreement (the
“Agreement”), is entered into as of this    24   
day of     
July      , 2008 (the “Effective Date”), by and
between Nicor Inc., an Illinois corporation, (the “Company”), and Russ M.
Strobel (the “Executive”).

       

      WITNESSETH
THAT

       

      WHEREAS,
the Executive currently serves as Chairman of the Board of Directors, President
and Chief Executive Officer of the Company, and

       

      WHEREAS,
the Executive and the Company are parties to a Supplemental Retirement Benefit
Agreement dated January 1, 2001 (the “Prior Agreement”); and

       

      WHEREAS,
the Executive and the Company desire to amend and restate the Prior Agreement in
the form of this Agreement for purposes of that portion of Executive’s benefit
that was not earned and vested within the meaning of Treas. Reg. §1.409A-6(a) as
of December 31, 2004; and

       

      WHEREAS,
notwithstanding any provisions of the Agreement to the contrary, the provisions
of the Prior Agreement in effect on October 3, 2004 apply with respect to those
benefits that were earned and vested under such Prior Agreement within the
meaning of Treas. Reg. §1.409A-6(a) as of December 31, 2004;

       

      NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Executive agree as
follows:

       

       

      
        	
                1.  

              	
                Supplementary
      Retirement Plan.  This Agreement is granted under and
      subject to the terms and conditions of the Nicor Gas Supplementary
      Retirement Plan (the “Plan”), unless otherwise provided
      herein.  The Executive shall be a Limited Participant in the
      Plan, and benefits payable under the Agreement shall be paid under the
      Plan.  By execution of this Agreement, Executive consents to the
      provisions of the Plan and this Agreement.  Capitalized terms in
      this Agreement shall have the meaning set forth in the Plan, unless
      otherwise defined herein.

              

      

       

      
        	
                2.  

              	
                Supplemental
      Retirement Benefit.  Subject to the following provisions
      of this Agreement and notwithstanding any provisions of the Plan to the
      contrary, the Executive shall be entitled to a Supplemental Retirement
      Benefit in an amount equal to $50,000 per year, determined as though
      payment would commence on the first day of the month next following the
      later of the Executive’s sixtieth (60th)
      birthday or Separation from Service and be payable for the Executive’s
      life.

              

      

       

      This
Agreement applies only with respect to the 25% portion of the Supplemental
Retirement Benefit that was not earned and vested as of December 31,
2004.  The terms of the Prior Agreement as in effect on October 3,
2004 apply with respect to the

       

      
        
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      75%
portion of the Supplemental Retirement Benefit that was earned and vested on
December 31, 2004.

       

      
        	
                3.  

              	
                Vesting
      Percentage.  The Executive is fully vested in the
      Supplemental Retirement Benefit.

              

      

       

      
        	
                4.  

              	
                Time and Form of
      Payment.  The Supplemental Retirement Benefit shall be
      paid as an Actuarially Equivalent Lump Sum.  The “Actuarially
      Equivalent Lump Sum” shall be determined as of the Executive’s Separation
      from Service, as the actuarial equivalent of the amount of the
      Supplemental Retirement Benefit described in section (2) of this Agreement
      determined using the lump sum actuarial factors set forth in the
      Plan.  In addition, interest on the Supplemental Retirement
      Benefit shall accrue commencing on the Executive’s Separation from Service
      and ending on the Executive’s payment date (as described below), at the
      first segment interest rate in effect at the Executive’s Separation from
      Service under Section 417(e)(3)(D) of the
Code.

              

      

       

      Payment
of the Supplemental Retirement Benefit shall be made on the first business day
of the seventh month after the Executive’s Separation from Service date (the
“payment date”).  If due to administrative reasons the Supplemental
Retirement Benefit cannot be distributed on the date otherwise payable under
this paragraph 4, then such benefit and interest thereon shall be distributed as
soon as practicable thereafter, but no later than December 31st of the
calendar year in which such distribution is otherwise payable (or the 15th day of
the third calendar month following the date otherwise payable, if
later).

       

      
        	
                5.  

              	
                Death.  If
      the Executive’s Separation from Service occurs as the result of death
      while employed by the Company or Nicor Gas Company (“Nicor Gas”), no
      benefits shall be payable under this
Agreement.

              

      

       

      
        	
                6.  

              	
                Cause.  If
      the Executive’s Separation from Service occurs for “Cause”, no benefits
      shall be payable under this Agreement.  “Cause” means: (a)the
      Executive’s willful commission of acts or omissions which have, have had,
      or are likely to have a material adverse effect on the business,
      operations, financial condition or reputation of the Company or Nicor Gas;
      (b) the Executive’s conviction (including a plea of guilty or nolo contendere) of a
      felony or any crime of fraud, theft, dishonesty or moral turpitude; or (c)
      the Executive’s material violation of any statutory or common law duty of
      loyalty to the Company or Nicor Gas.  For purposes of this
      Agreement, no act, or failure to act, on the part of the Executive shall
      be considered “willful” unless it is done, or omitted to be done, by the
      Executive in bad faith or without reasonable belief that the Executive’s
      action or omission was in the best interests of the Company or Nicor
      Gas.  Any act, or failure to act, pursuant to direction provided
      by the person to whom the Executive reports, or provided by a resolution
      duly adopted by the Board, or pursuant to advice of counsel for the
      Company or Nicor Gas, shall be conclusively presumed to be done, or
      omitted to be done, by the Executive in good faith and in the best
      interests of the Company or Nicor
Gas.

              

      

       

      
        	
                7.  

              	
                Heirs and
      Successors.  This Agreement shall be binding upon, and
      inure to the benefit of, the heirs, executors and legal representatives of
      the Executive and the Company and its successors and assigns, and upon any
      person acquiring, whether by merger, consolidation, purchase of assets or
      otherwise, all or substantially all of the
  Company’s

              

      

       

      
        
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                  assets
      and business.

                

        

         

        	
                8.  

              	
                Benefit May Not Be
      Assigned or Alienated.  The benefit payable to any person
      under this Agreement may not be voluntarily or involuntarily assigned or
      alienated.

              

      

       

      
        	
                9.  

              	
                Applicable
      Laws.  This Agreement shall be interpreted and
      administered in accordance with the laws of the State of Illinois, without
      regard to its choice of law
principles.

              

      

       

      
        	
                10.  

              	
                Entire Agreement and
      Amendment.  The Plan, the Prior Agreement and this
      Agreement constitute the entire agreement between the Executive and the
      Company with respect to supplemental retirement benefits, and supersede
      all other agreements, verbal and written, that may have been made by the
      parties hereto.  This Agreement may be amended or cancelled by
      mutual agreement of the parties hereto in writing without the consent of
      any other person and, so long as the Executive lives, no person, other
      than the parties hereto, shall have any rights under or interest in this
      Agreement or the subject matter
hereof.

              

      

       

      
        	
                11.  

              	
                Section 409A
      Compliance.  To the extent applicable, this Agreement
      shall be interpreted in accordance with Section 409A of the Internal
      Revenue Code of 1986 (the “Code”) and Department of Treasury regulations
      and other interpretive guidance issued
      thereunder.  Notwithstanding section (10) of this Agreement, if
      the Company determines that any compensation or benefits payable under
      this Agreement do not comply with Code Section 409A and related Department
      of Treasury guidance, the Company and Executive agree to amend this
      Agreement or take such other actions as the Company deems necessary or
      appropriate to comply with the requirements of Code Section 409A while
      preserving the economic agreement of the
  parties.

              

      

       

      
        	
                12.  

              	
                Severability.  If
      any one or more sections or other portions of this Agreement are declared
      by any court or governmental authority to be unlawful or invalid, such
      unlawfulness or invalidity shall not serve to invalidate any section or
      other portion not so declared to be unlawful or invalid. Any section or
      other portion so declared to be unlawful or invalid shall be construed so
      as to effectuate the terms of such section or other portion to the fullest
      extent possible while remaining lawful and
  valid.

              

      

       

      
        	
                13.  

              	
                Notices.  All
      notices and other communications under this Agreement shall be in writing
      and delivered by hand, by a nationally-recognized commercial delivery
      service, or by first-class registered or certified mail, return receipt
      requested, postage prepaid, addressed as
  follows:

              

      

       

      If to the
Executive:

       

      Russ M.
Strobel

      44
Woodley Road

      Winnetka,
IL 60093

      

      If to the
Company:

       

      Nicor
Inc.

      1844
Ferry Road

      Naperville,
IL 60563-9600

      Attn:
Senior Vice President – 

      Human
Resources

       

      
        
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                14.  

              	
                Counterparts.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be deemed as original, but all of which together shall constitute one and
      the same instrument.

              

      

       

      
        	
                15.  

              	
                Captions.  The
      captions of this Agreement are not a part of the provisions hereof and
      shall have no force or effect.

              

      

       

      
        	
                16.  

              	
                Tax
      Withholding.  The Company may withhold from any amounts
      payable under this Agreement any federal, state, or local taxes that are
      required to be withheld pursuant to any applicable law or
      regulation.

              

      

       

      
        	
                17.  

              	
                No
      Waiver.  A waiver of any provision of this Agreement
      shall not be deemed a waiver of any other provision, and any waiver of any
      default as to any such provision shall not be deemed a waiver of any later
      default as to that or any other
provision.

              

      

       

      

       

      IN
WITNESS WHEREOF, the Executive and the Company have executed this Agreement as
of the date first above written.

       

      

       

      EXECUTIVE                                                                                                                          
NICOR INC.

       

      

       

      /s/ RUSS M.
STROBEL                                                                                                       
By: /s/ CLAUDIA J.
COLALILLO

      Russ M.
Strobel                                                                                                                    Its: Senior Vice President Human
Resources

                                                         and Corportate
Communications              

       

       

       

      
 

      

      
        
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