Document:

exhibit_10-2.htm

Exhibit 10.2

FIRST AMENDMENT

TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of February 26, 2013 and is entered into by and among NORTHERN ILLINOIS GAS COMPANY, an Illinois corporation (the “Borrower”), the Lenders party hereto, and SUNTRUST BANK, as Administrative Agent (“Administrative Agent”), and is made with reference to that certain CREDIT AGREEMENT dated as of December 15, 2011 by and among the Borrower, the Lenders party thereto, the Administrative Agent and the other Agents named therein (the “Credit Agreement”).  Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement after giving effect to this Amendment.

 

RECITALS

 

WHEREAS, the Borrower has requested that the Required Lenders agree to allow the Borrower to amend Schedule 6.8 of the Credit Agreement as provided for herein; and

 

WHEREAS, subject to certain conditions, the Required Lenders are willing to agree to allow such amendment.

 

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

	
SECTION I.

	
AMENDMENTS TO CREDIT AGREEMENT

 

	
  

	
A.

	
Amendment of Schedule 6.8.

 

Schedule 6.8 of the Credit Agreement is hereby amended and restated in its entirety by replacing the current Schedule 6.8 with the revised Schedule 6.8 attached hereto as Exhibit A.

 

	
SECTION II.

	
CONDITIONS TO EFFECTIVENESS

 

This Amendment shall become effective as of the date hereof only upon the satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the “Amendment Effective Date”):

 

A.           Execution.  The Administrative Agent shall have received (i) a counterpart signature page of this Amendment duly executed by the Borrower and (ii) a counterpart signature page of this Amendment duly executed by such Lenders necessary to constitute the Required Lenders.

 

B.           Other Fees.  The Administrative Agent shall have received all other fees and other amounts due and payable on or prior to the Amendment Effective Date to the extent invoiced in reasonable detail, including, without limitation, reimbursement or other payment of reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder or any other Loan Document.

 

  

  

  

C.           Necessary Consents.  The Borrower shall have obtained all material consents necessary in connection with the transactions contemplated by this Amendment.

 

D.           Other Documents.  The Administrative Agent and the Lenders shall have received such other documents, information or agreements regarding the Borrower as the Administrative Agent may reasonably request.

 

	
SECTION III.

	
REPRESENTATIONS AND WARRANTIES

 

In order to induce the Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, the Borrower represents and warrants to each Lender that the following statements are true and correct in all material respects:

 

A.           Existence.  Each Group Member is organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

B.           Power; Execution; Enforceable Obligations.

 

(a)           The Borrower has the corporate power and authority, and the legal right, to make, deliver and perform its obligations under this Amendment, the Credit Agreement (as amended by and/or consented to under this Amendment, the “Amended Agreement”) and the other Loan Documents to which it is a party and to obtain extensions of credit under the Amended Agreement.  The Borrower has taken all necessary organizational action to authorize the execution, delivery and performance of this Amendment, the Amended Agreement and the other Loan Documents to which it is a party and to authorize the extensions of credit on the terms and conditions of the Amended Agreement.

 

(b)           This Amendment has been duly executed and delivered on behalf of the Borrower.

 

(c)           Each of this Amendment, the Amended Agreement and each other Loan Document constitutes, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

C.           No Conflict.  The execution and delivery by the Borrower of this Amendment and the performance by the Borrower of the Amended Agreement and the other Loan Documents do not and will not (i) violate (A) any provision of any law, statute, rule or regulation, or of the certificate or articles of incorporation or partnership agreement, other constitutive documents or by-laws of the Borrower or is Subsidiaries or (B) any applicable order of any court or any rule, regulation or order of any Governmental Authority, (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under any Contractual Obligation of the Borrower or its Subsidiaries, where any such conflict, violation, breach or default referred to in clause (i) or (ii) of this Section III.C., individually or in the aggregate could reasonably be expected to have a Material Adverse Effect, (iii) except as permitted under the Amended Agreement, result in or require the creation or imposition of any Lien upon any of the properties or assets of the Borrower or its Subsidiaries (other than any Liens created under any of the Loan Documents in favor of Administrative Agent on behalf of Lenders), or (iv) require any approval of stockholders or partners or any approval or consent of any Person under any Contractual Obligation of the Borrower or its Subsidiaries, except for such approvals or consents which will be obtained on or before the Amendment Effective Date and except for any such approvals or consents the failure of which to obtain will not have a Material Adverse Effect.

 

  

  

  

D.           Governmental Consents.  No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with the execution and delivery by the Borrower of this Amendment and the performance by the Borrower of the Amended Agreement and the other Loan Documents, except for such actions, consents and approvals the failure to obtain or make which could not reasonably be expected to result in a Material Adverse Effect or which have been obtained and are in full force and effect.

 

E.           Incorporation of Representations and Warranties from Credit Agreement.  The representations and warranties contained in Section 3 of the Amended Agreement are and will be true and correct in all material respects on and as of the Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct in all material respects on and as of such earlier date.

 

F.           Absence of Default.  No event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment that would constitute an Event of Default or a Default.

 

G.           Release of Claims.  The Borrower has no knowledge of any claims, counterclaims, offsets or defenses to or with respect to its obligations under the Loan Documents, or if the Borrower has any such claims, counterclaims, offsets or defenses to the Loan Documents or any transaction related to the Loan Documents, the same are hereby waived, relinquished and released in consideration of the execution of this Amendment.

 

	
SECTION IV.

	
MISCELLANEOUS

 

A.           Reference to and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)           On and after the Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.

 

(ii)           Except as specifically amended by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

 

  

  

  

(iii)           The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent or Lender under, the Credit Agreement or any of the other Loan Documents.

 

B.           Headings.  Section and Subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

 

C.           Applicable Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

D.           Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.

 

[Remainder of this page intentionally left blank.]

  

  

  

SUNTRUST BANK, as Administrative Agent and

a Lender

 

By:           /s/ Dave Felty

Name:  Dave Felty

Title:    Director

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

Wells Fargo Bank, National Association, as a Lender

 

By:          /s/ Allison Newman

Name:  Allison Newman

Title:    Director

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

The Bank of Tokyo-Mitsubishi, UFJ, Ltd., as a Lender

 

By:           /s/ Alan Reiter

Name:  Alan Reiter

Title:    Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

JPMORGAN CHASE BANK, N.A., as a Lender

 

By:          /s/ Helen D. Davis

Name:   Helen D. Davis

Title:     Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

 U.S. Bank National Association, as a Lender

 

 By:         /s/ John M. Eyerman

Name:  John M. Eyerman

Title:    Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

Bank of America, N.A., as a Lender

 

By:          /s/ William Merritt

Name:  William Merritt

Title:    Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

FIFTH THIRD BANK, as a Lender

 

By:          /s/ Kenneth W. Deere

Name:  Kenneth W. Deere

Title:    Senior Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

GOLDMAN SACHS BANK USA, as a Lender

 

By:          /s/ Michelle Latzoni

Name:  Michelle Latzoni

Title:    Authorized Signatory

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

MORGAN STANLEY BANK, N.A., as a Lender

 

By:          /s/ John Durland

Name:  John Durland

Title:    Authorized Signatory

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

THE ROYAL BANK OF SCOTLAND PLC, as a Lender

 

By:          /s/ Matthew Main

Name:  Matthew Main

Title:    Authorized Signatory

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

The Bank of Nova Scotia, as a Lender

 

By:          /s/ Thane Rattew

Name:  Thane Rattew

Title:    Managing Director

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

The Northern Trust Company, as a Lender

 

By:          /s/ Vivian Tran

Name:  Vivian Tran

Title:    Officer

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

The Bank of New York Mellon, as a Lender

 

By:          /s/ Hussam S. Alsahlani

Name:  Hussam S. Alsahlani

Title:    Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

Branch Banking and Trust Company, as a Lender

 

By:           /s/ Robert T. Barnaby

Name:  Robert T. Barnaby

Title:    Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

PNC Bank, National Association, as a Lender

 

By:          /s/ Susan J. Dimmick

Name:  Susan J. Dimmick

Title:    Senior Vice President

[Signature Page to First Amendment to Nicor Credit Agreement]

  

  

  

Exhibit A

SCHEDULE 6.8

AGREEMENTS PROHIBITING OR LIMITING LIENS

 

	
1.

	
Indenture dated January 1, 1954, between Commonwealth Edison Company and Continental Illinois National Bank and Trust Company of Chicago, as supplemented from time to time, and as last supplemented by a Supplemental Indenture, dated as of January 25, 2011 to be effective February 1, 2011, between the Borrower and The Bank of New York Mellon Trust Company, N.A., as successor trustee under the Indenture dated as of January 1, 1954, as amended or supplemented from time to time.

 

	
2.

	
Amended and Restated Credit Agreement, dated November 10, 2011, among AGL Resources Inc., as Guarantor, AGL Capital Corporation, as Borrower, the Lenders from time to time party thereto, and Wells Fargo Bank, National Association, as Administrative Agent and any renewal, extension, refinancing or replacement thereof, as amended, restated, modified, renewed, refunded, replaced or refinanced (including by means of sales of debt securities or preferred equity) in whole or in part from time to time (and whether or not with the original administrative agent and lenders or another administrative agent or agents or other lenders and whether provided under a credit or other agreement or an indenture).

 

	
3.

	
Reimbursement Agreement dated October 14, 2010, by and among Pivotal Utility Holdings, Inc., as Borrower, AGL Resources Inc., as Guarantor and JPMorgan Chase Bank, N.A. as Administrative Agent and Lender, as amended by that certain First Amendment to Reimbursement Agreement dated December 17, 2010, and by that certain Second Amendment to Reimbursement Agreement dated August 11, 2011, pursuant to which direct pay letters of credit will be posted to support the $39.0 million bonds due June 1, 2026 issued by New Jersey Economic Development Authority, for which that certain Loan Agreement, dated June 1, 1996, between NUI Utilities, Inc. (f/k/a NUI Corporation) and New Jersey Economic Development Authority, as amended, was executed.  This Reimbursement Agreement shall be terminated on or around March 25, 2013.

 

	
4.

	
Reimbursement Agreement dated October 14, 2010, by and among Pivotal Utility Holdings, Inc., as Borrower, AGL Resources Inc., as Guarantor and JPMorgan Chase Bank, N.A. as Administrative Agent and Lender, as amended by that certain First Amendment to Reimbursement Agreement dated December 17, 2010, and by that certain Second Amendment to Reimbursement Agreement dated August 11, 2011, pursuant to which direct pay letters of credit will be posted to support the $54.6 million bonds due June 1, 2032 issued by New Jersey Economic Development Authority, for which that certain Loan Agreement, dated May 1, 2007, between Pivotal Utility Holdings, Inc. (f/k/a NUI Utilities, Inc. and NUI Corporation) and New Jersey Economic Development Authority, as amended, was executed.  This Reimbursement Agreement shall be terminated on or around March 25, 2013.

 

	
5.

	
Reimbursement Agreement dated as of October 14, 2010, by and among Pivotal Utility Holdings, Inc., as Borrower, AGL Resources Inc., as Guarantor and The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, as Administrative Agent and Lender, as amended by that First Amendment to Reimbursement Agreement dated December 17, 2010, and by that certain Second Amendment to Reimbursement Agreement dated August 11, 2011, pursuant to which direct pay letters of credit will be posted to support the $46.5 million bonds due October 1, 2022 issued by New Jersey Economic Development Authority, for which that certain Loan Agreement, dated May 1, 2005, between Pivotal Utility Holdings, Inc. and New Jersey Economic Development Authority, as amended, was executed.  This Reimbursement Agreement shall be terminated on or around March 25, 2013.

 

	
6.

	
Bank Rate Mode Covenants Agreement, dated as of February 26, among AGL Resources Inc., Pivotal Utility Holdings, Inc., the several purchasers from time to time parties thereto and SunTrust Bank, as administrative agent.

 

	
7.

	
Note Purchase Agreement dated August 31, 2011, among AGL Capital Corporation, AGL Resources Inc. and the respective purchasers named therein pursuant to which AGL Capital Corporation issued the private placement notes described therein on October 27, 2011.

 

	
8.

	
Master Program Agreements, Consent and Assignment Agreements, Loan Agreements or other similar financing documents pursuant to which lending institutions lend money to subsidiaries of AGL Resources Inc. to finance capital improvements made to departments, instrumentalities, agencies, and other entities of the United States government by such Holdings subsidiaries pursuant to government area-wide contracts, such loans being secured by liens on accounts receivable payable by the U.S. Government to AGL Resources Inc. or its subsidiaries.

 

[Signature Page to First Amendment to Nicor Credit Agreement]exhibit_10-3.htm

Exhibit 10.3

AGL RESOURCES INC.

AMENDED AND RESTATED COMMON STOCK EQUIVALENT PLAN

FOR NON-EMPLOYEE DIRECTORS

This Amended and Restated AGL Resources Inc. Common Stock Equivalent Plan for Non-Employee Directors (the “Plan”) is made and entered into by AGL Resources Inc. (the “Company”) as of the 28th day of July, 2015.

	
1. 

	
Establishment and Purpose. AGL Resources Inc., a Georgia corporation (the “Company”), has established the AGL Resources Inc. Amended and Restated Common Stock Equivalent Plan for Non-Employees Directors (the “Plan”), which became effective as of January 1, 1998. The Company has amended the Plan several times and has further amended and restated the Plan as of the date set forth above. The purpose of the Plan is to (i) provide Directors participating in the Plan with an opportunity to obtain a proprietary interest in the Company, (ii) provide such Directors with an added incentive to continue in the service of the Company, and (iii) stimulate such Directors’ efforts in promoting the growth, efficiency and profitability of the Company.

	
2. 

	
Definitions.

	
a. 

	
“Account” shall mean the bookkeeping account to which a Participant has Deferred Amounts credited under this Plan.

	
b. 

	
“Board” shall mean the Board of Directors of the Company.

	
c. 

	
“Beneficiary” shall mean the person or persons (including, without limitation, the trustees of any testamentary or inter vivos trust) designated from time to time in writing by a Participant on an election form provided for said purpose to receive payments under the Plan after the death of such Participant, or, in the absence of any such designation or in the event that such designated persons or person shall predecease such Participant or shall not be in existence or shall otherwise be unable to receive such payments, the person or persons designated under such Participant’s last will and testament or, in the absence of such designation, to the Participant’s estate.

	
d. 

	
“Change in Control” shall mean the earliest of the following to occur:

	
i. 

	
The date any one person, or more than one person acting as a group (as determined under Treasury Regulation 1.409A-3(i)(5)(v)(B), a “Group”), acquires ownership of stock of the Company that, together with stock held by such person or Group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company. If any one person or Group is considered to own more than 50% of the total fair market value or total voting power of the Company, the acquisition of additional control of the Company by the same person or Group is not considered to cause a Change in Control of the Company;

  

  

  

	
ii. 

	
The date any one person or Group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company;

	
iii. 

	
The date a majority of the members of the Board is replaced during any twelve (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 their appointment or election; or

	
iv. 

	
The date that any one person or Group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all assets of the Company immediately before such acquisition or acquisitions. For this purpose, gross fair market value means the value of the assets of the Company, or the assets being disposed of, determined without regard to any liabilities associated with such assets.

It is intended that there will be a Change in Control under the Plan only to the extent such event or transaction would constitute a “change in control event” as such term is defined in Treasury Regulation Section 1.409A-3(i)(5) and thus the provisions of the definition of Change in Control shall be applied and interpreted consistent with the provisions of such Treasury Regulation, as amended from time to time, recognizing however, that the definition of Change in Control in the Plan may be more restrictive in certain respects than the definition contained in Treasury Regulation Section 1.409A-3(i)(5).

	
e. 

	
“Common Stock” shall mean the common stock of the Company, par value $5.00 per share.

	
f. 

	
“Common Stock Equivalents” or “CSEs” shall mean the units that are credited to a Director’s Account under this Plan.

	
g. 

	
“Company” shall mean AGL Resources Inc., a Georgia corporation, and any successor of the Company.

	
h. 

	
“Compensation” shall mean the retainers, fees and equity awards that are paid or granted by the Company to a Participant as compensation for services performed by the Participant as a Director, including supplemental compensation for committee, chair and lead director positions, as applicable.

  

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i. 

	
“Deferred Amount” shall mean an amount of Compensation deferred at the election of the Participant under this Plan.

	
j. 

	
“Director” shall mean any member of the Board of Directors of the Company who is not an employee of the Company.

	
k. 

	
“Fair Market Value” shall mean, as of any date of determination, the most recent closing price per share of the Common Stock as published in the Eastern Edition of The Wall Street Journal report on the New York Stock Exchange Composite Transactions (or other established exchange on which the Common Stock is listed).

	
l. 

	
“Participant” shall mean any Director who elects to defer Compensation under this Plan.

	
m. 

	
“Plan” shall mean the AGL Resources Inc. Amended and Restated Common Stock Equivalent Plan for Non-Employee Directors, as from time to time amended and in effect.

	
n. 

	
“Termination of Service” shall mean a “separation from service” with the Company (by death, retirement or otherwise) as defined in Treasury Regulation Section 1.409A-1(h).

	
3. 

	
Deferral of Compensation. Each Director may elect to defer his or her Compensation (with the election limited to all of his or her annual Compensation) for any calendar year under this Plan. Such election shall be made on a form prescribed by the Company and filed with the Corporate Secretary of the Company prior to the beginning of the calendar year during which the Compensation is to be earned. Notwithstanding the foregoing, in the first calendar year a Participant becomes eligible to participate in the Plan, he or she may submit a deferral election within thirty (30) days of the date he or she becomes eligible to participate in the Plan with respect to Compensation for the calendar year in which the Participant becomes eligible to participate in the Plan. Such election shall only apply to Compensation earned prospectively. This exception for the initial year of eligibility shall apply only to the extent the Participant is not already eligible to participate in a different deferred compensation plan of the same type as determined by Treasury Regulation 1.409A-1(c)(2). The election shall be irrevocable for the first calendar year to which it relates, and it shall continue in effect for subsequent calendar years until changed prospectively by the Participant, in writing to the Corporate Secretary of the Company, before the beginning of the calendar year for which the change is effective. If an election is made by a person who has been elected to serve as a Director, but whose term has not yet commenced, that Director’s election shall be effective as of the commencement of said term.

	
4. 

	
Treatment of Deferred Amounts. The Company shall establish on its books an Account for each Participant who defers Compensation under this Plan. Such Account will accurately reflect the Company’s liability to such Participant. The standing balance in each account is hereafter referred to as the “Account Balance.” Despite the maintenance of such Account, the Company’s obligation to make payments under the Plan to a Participant shall be made from the Company’s general assets and property. The Company may, in its sole discretion, establish a separate fund or account to make payment of benefits to a Participant or Beneficiary hereunder. Whether or not the Company, in its sole discretion, does establish such a fund or account, no Participant, Beneficiary or any person shall have, under any circumstances, any interest whatever in any particular property or assets of the Company by virtue of this Plan. Accordingly, the Company’s obligation to pay benefits under the Plan shall be merely an unfunded and unsecured promise of the Company to pay money in the future.

  

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5. 

	
Conversion of Deferred Amounts to Common Stock Equivalents. Deferred Amounts credited to a Participant’s Account representing a retainer amount shall be converted into CSEs on the dates that such retainer would have been paid or issued to the Director. Deferred Amounts representing meeting fees, if any, shall be aggregated and converted into CSEs on June 15 and December 15 of each calendar year, based on the number of meetings attended by the Participant in the prior six-month period.. Deferred Amounts shall be converted into a number of CSEs equal to the number of shares of Common Stock, calculated to three decimal places, that could be purchased with such Deferred Amounts on the date of conversion to CSEs, at a per share price equal to the Fair Market Value of the Common Stock on such date.

	
6. 

	
Dividends. On each date on which a dividend, in cash, property or stock, is distributed on shares of issued and outstanding Common Stock, the Participant’s Account shall be credited with a number of CSEs based upon the amount of cash or the fair market value of any property or stock (the “base amount”) distributed with respect to a number of shares issued and outstanding of the Common Stock equal to the number of CSEs (including fractions) standing to the Participant’s credit in his or her Account on the record date for such distribution (assuming that fractional shares could be held of record and that distributions were made with respect thereto). The number of CSEs to be so credited shall be equal to the number of shares of Common Stock, to three decimal places, that could be purchased on such dividend distribution date with the base amount at a per share price equal to the Fair Market Value of the Common Stock on such date.

	
7. 

	
Payment of Deferred Amounts.

	
a. 

	
Upon a Participant’s Termination of Service, or upon a Change in Control of the Company, a Participant’s Account Balance shall be paid to him or her (or, in the event of the Participant’s death, to the Participant’s Beneficiary).

	
b. 

	
The Participant shall elect, on his or her initial election form, to be paid his or her Account Balance in either (i) five annual cash installments, or (ii) one cash lump sum payment. Such election shall be irrevocable. Notwithstanding the foregoing, the Company may, but is not required to, permit a Participant to change his initial election to change the method of payment of his or her Account Balance, in accordance with the following: (i) the Participant must change his election not less than twelve (12) months before a scheduled payment; (ii) the first payment with respect to such changed election must be deferred at least five (5) years from the date such payment would otherwise have been made, and (iii) the election shall not become effective for twelve (12) months. The change of election shall be made on a form provided by the Company.

  

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c. 

	
Payment of a Participant’s Account Balance shall commence within thirty (30) days of a Participant’s Termination of Service or Change in Control. In converting a Participant’s CSEs in his or her Account into cash for payment purposes, such conversion shall be made on each payment date to the Participant based on the then current Fair Market Value of the shares of Common Stock reflected in the Participant’s Account.

	
8. 

	
Amendment or Termination. The Board of Directors may amend or terminate this Plan at any time; provided, however, that no amendment or termination shall adversely affect any then existing Deferred Amounts or rights under this Plan, and provided further that no amendment may be made to the last sentence of Section 12 hereof.

	
9. 

	
Expenses. The expenses of administering the Plan shall be borne by the Company, and shall not be charged against any Participant’s Account.

	
10. 

	
Applicable Law. The provisions of the Plan shall be construed, administered and enforced according to the laws of the State of Georgia.

	
11. 

	
No Trust. No action by the Company or its Board of Directors under this Plan shall be construed as creating a trust, escrow or other secured or segregated fund or other fiduciary relationship of any kind in favor of any Participant, Beneficiary, or any other persons. The status of a Participant or Beneficiary with respect to any liabilities assumed by the Company hereunder shall be solely those of an unsecured creditor of the Company. Any asset acquired or held by the Company in connection with liabilities assumed by it hereunder shall not be deemed to be held under any trust, escrow or other secured or segregated fund or other fiduciary relationship of any kind for the benefit of a Participant or Beneficiary, or to be security for the performance of the obligations of the Company, but shall be, and remain, a general, unpledged, unrestricted asset of the Company at all times subject to the claims of general creditors of the Company.

	
12. 

	
Assignment; Successors. Neither the Participant nor any other person shall have the power, voluntarily or involuntarily, to transfer, assign, anticipate, pledge, mortgage or otherwise encumber, alienate or transfer any rights hereunder in advance of any of the payments to be made pursuant to this Plan or any portion thereof. The obligations of the Company hereunder shall be binding upon any and all successors and assigns to the Company.

	
13. 

	
Withholding. The Company shall comply with all federal and state laws and regulations respecting the withholding, deposit and payment of any income or employment taxes relating to the payment of Deferred Amounts under this Plan.

  

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14. 

	
No Impact on Directorship. This Plan shall not be construed to confer any right on the part of a Participant to be or remain a Director or to receive any, or any particular rate of, Compensation.

	
15. 

	
Interpretations. Interpretations of, and determinations related to, this Plan made by the Company in good faith, including any determinations or calculations of Deferred Amounts or Account Balances, shall be conclusive and binding upon all parties; and the Company shall not incur any liability to a Participant for any such interpretation or determination so made or for any other action taken by it in connection with this Plan.

	
16. 

	
Changes in Capital Structure. In the event of a nonreciprocal transaction between the Company and its shareholders that causes the per share value of the shares of Common Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the Board of Directors shall make such adjustments to the Plan and Participant’s Accounts (and Common Stock Equivalents) as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Without limiting the foregoing, in the event of a subdivision of the outstanding Common Stock (stock-split), a declaration of a dividend payable in shares of Common Stock, or a combination or consolidation of the outstanding Common Stock into a lesser number of shares of Common Stock, the Participants’ Accounts (and Common Stock Equivalents) shall automatically, without the necessity for any additional action by the Board, be adjusted proportionately.

	
17. 

	
Special Provisions Related to Section 409A of the Code. It is intended that the payments and benefits provided under the Plan shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan is not warranted or guaranteed. Neither the Company, its affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan.

IN WITNESS WHEREOF, the Company has caused this Amended and Restated Plan to be executed by its duly authorized officer as of the date first above written.

 AGL RESOURCES INC.

 By: /s/ Melanie M. Platt

Melanie M. Platt

Executive Vice President and Chief People Officer

  

6

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