Document:

exh10-20.htm

    
      Exhibit
10.20

      

      

      NEW
JERSEY RESOURCES CORPORATION

      

      2007
Stock Award and Incentive Plan

      

      Restricted
Stock Agreement

      

      This
Restricted Stock Agreement (the "Agreement"), which includes the attached “Terms
and Conditions of Restricted Stock” (the “Terms and Conditions”), confirms the
grant on _________ __, 200_ (the “Grant Date”) by NEW JERSEY RESOURCES
CORPORATION, a New Jersey corporation (the "Company"), to ("Employee"), under
Section 6(d) of the 2007 Stock Award and Incentive Plan (the "Plan"), of
Restricted Stock as follows:

       

      
        
          	
                      Number
      granted:

                	
                  ______________
      shares of Restricted Stock

                   

                
	
                      Fair
      Market Value at Grant Date:

                	
                  $
      _____________ per share

                   

                
	
                      How Restricted
      Stock Vests:

                	
                  The
      Restricted Stock, if not previously forfeited, will vest on the dates and
      as to the number of shares in the following table:

                   

                
	
                         
      Stated Vesting
      Date

                	
                  Number of Shares That Vest at that
      Date

                

        

      

       

                                                          
(INSERT VESTING SCHEDULE)

       

      
        In
addition, if not previously forfeited, the Restricted Stock will become
immediately vested in full upon a Change in Control, and will become vested upon
the occurrence of certain events relating to Termina­tion of Employment to
the extent provided in Section 3 of the attached Terms and Conditions. The terms
"vest" and "vesting" mean that the Restricted Stock has become transferable and
non-forfeitable. If Employee has a Termination of Employment prior to a Stated
Vesting Date and shares of Restricted Stock are not otherwise deemed vested by
that date, such Restricted Stock will be immediately forfeited. Forfeited
Restricted Stock ceases to be outstanding and in no event will thereafter result
in any delivery of shares of Stock to Employee.

      

       

      The
Restricted Stock is subject to the terms and conditions of the Plan and this
Agreement, including the attached Terms and Conditions. The number and kind of
shares of Restricted Stock and other terms of the Restricted Stock are subject
to adjustment in accordance with Section 4(b) of the attached Terms
and Conditions and Section 11(c) of the Plan. Capitalized terms used in this
Agreement but not defined herein shall have the same meanings as in the
Plan.

      

      Employee
acknowledges and agrees that (i) Restricted Stock is nontransferable, except as
provided in Section 2 of the attached Terms and Conditions and Section 11(b) of
the Plan, (ii) the Restricted Stock is subject to forfeiture in the event of
Employee's Termination of Employment in certain circum­stances prior to
vesting, as specified in Section 3 of the attached Terms and Conditions, and
(iii) sales of the shares of Stock following vesting of the Restricted Stock
will be subject to the Company's policy regulating trading by
employees,

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, NEW JERSEY RESOURCES CORPORATION has caused this Agreement to
be executed by its officer thereunto duly authorized, and Employee has duly
executed this Agreement, by which each has agreed to the terms of this
Agreement.

      

      

      EMPLOYEE                                                                               NEW
JERSEY RESOURCES CORPORATION

      

                                           By:_________________________           

      [Employee
Name]                                                                                 [Name]

      [Title]

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      TERMS AND
CONDITIONS OF RESTRICTED STOCK

      

      The
following Terms and Conditions apply to the Restricted Stock granted to Employee
by NEW JERSEY RESOURCES CORPORATION (the "Company"), and Restricted Stock
resulting from Dividend Equivalents (as defined below), if any, as specified in
the Restricted Stock Agreement (of which these Terms and Conditions form a
part). Certain terms of the Restricted Stock, including the number of shares
granted and vesting date(s), are set forth on the preceding pages, which is an
integral part of this Agreement.

      

      1.           General.  The
Restricted Stock is granted to Employee under the Company's 2007 Stock Award and
Incentive Plan (the "Plan"), a copy of which has been previously delivered to
Employee and/or is available upon request to the Corporate Benefits Department.
All of the applicable terms, conditions and other provisions of the Plan are
incorporated by reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan. If there is any
conflict between the provisions of this document and mandatory provisions of the
Plan, the provisions of the Plan govern. Employee agrees to be bound by all of
the terms and provisions of the Plan (as presently in effect or later amended),
the rules and regula­tions under the Plan adopted from time to time, and the
decisions and determinations of the Leadership Development and Compensation
Committee of the Company's Board of Directors (the "Committee") made from time
to time.

      

      2.           Nontransferability.  Until
such time as the Restricted Stock has become vested in accordance with the terms
of this Agreement, Employee may not transfer Restricted Stock or any rights
hereunder to any third party other than by will or the laws of descent and
distribution. This restriction on transfer precludes any sale, assignment,
pledge, or other encumbrance or disposition of the shares of Restricted Stock
(except for forfeitures to the Company).

      

      3.           Termination
Provisions. The following provisions will govern the vesting and
forfeiture of the Restricted Stock that is outstanding at the time of Employee's
Termination of Employment (as defined below), unless otherwise determined by the
Committee (subject to Section 7(a) hereof):

      

      (a)           Death, Disability or
Retirement.  In the event of Employee's Termination of
Employment due to death, Disability or Retirement (as defined below), a Pro-Rata
Portion of the outstanding Restricted Stock will vest immediately. Any portion
of the outstanding Restricted Stock not vested at the date of Termination will
be forfeited.

      

      (b)           Termination by the Company or
Voluntarily by Employee.  In the event of Employee's
Termination of Employment by the Company for any reason or by Employee
voluntarily (other than a Retirement), any portion of the outstanding Restricted
Stock not vested at the date of Termination will be forfeited.

      

      (c)           Certain
Definitions.  The following definitions apply for purposes of
this Agreement:

      

      (i)           "Disability"
means Employee has been incapable of substantially fulfilling the positions,
duties, responsibilities and obligations of his employment because of physical,
mental or emotional incapacity resulting from injury, sickness or disease for a
period of at least six consecutive months. The Company and Employee shall agree
on the identity of a physician to resolve any question as to Employee's
disability. If the Company and Employee cannot agree on the physician to make
such determination, then the Company and Employee shall each select a physician
and those physicians shall jointly select a third physician, who shall make the
determination. The determination of any such physician shall be final and
con­clusive for all purposes of this Agreement.

      

      (ii)           "Pro
Rata Portion" means, for each tranche of Restricted Stock, a fraction the
numerator of which is the number of days that have elapsed from the Grant Date
to the date of Employee's Termination of Employment and the denominator of which
is the number of days from the Grant Date to the Stated Vesting Date for that
tranche. A "tranche" is that portion of the Restricted Stock that has a unique
Stated Vesting Date.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      (iii)           “Retirement”
means the Employee terminates employment at or after age 65, or at or after age
55 with 20 or more years of service.

      

       
(iv)           “Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section
424(f) of the Code (“Section 424(f) Corporation”) and any partnership, limited
liability company or joint venture in which either the Company or Section 424(f)
Corporation is at least a fifty percent (50%) equity participant.

      

       
(v)           "Termination
of Employment" and “Termination” means the earliest time at which Employee is
not employed by the Company or a Subsidiary of the Company and is not serving as
a non-employee director of the Company or a Subsidiary of the
Company.

      

      4.           Dividends and
Adjustments.

       

            
(a)           Dividends.  In the
event of dividends or distributions on Stock, the following terms and conditions
shall apply except as provided in Section 4(b) below:

      

      
        	
                 
      

              	
                 

              	
                      (i)  In the
      event of a cash dividend or distribution on Stock or a non-cash dividend
      or distribution in the form of property other than Stock payable on Stock
      (including shares of a Subsidiary of the Company distributed in a
      spin-off), the Company shall immediately convert such dividend or
      distribution into Restricted Stock and such
      additional Restricted Stock will become vested if and to the same extent
      as the original Restricted Stock with respect to which the dividend or
      distribution was payable becomes vested, and shall be subject to all other
      terms and conditions as applied to the original Restricted
      Stock.

              

      

      

      
        	
                 
      

              	
                 

              	
                    (ii)  In the
      event of a dividend or distribution in the form of Stock or split-up of
      shares, the Stock issued or delivered as such dividend or distribution or
      resulting from such split-up will be deemed to be additional Restricted
      Stock and will become vested if and to the same extent as the original
      Restricted Stock with respect to which the dividend or distribution was
      payable becomes vested, and shall be subject to all other terms and
      conditions as applied to the original Restricted
  Stock.

              

      

      
            (b)           Adjustments.  The
number and kind of shares of Restricted Stock, the number of such shares to be
vested and other terms and conditions of Restricted Stock or otherwise contained
in this Agreement shall be appropriately adjusted, in order to prevent dilution
or enlargement of Employee’s rights hereunder, to reflect any changes in the
number of outstanding shares of Stock resulting from any event referred to in
Section 11(c) of the Plan, taking into account any Restricted Stock or other
amounts paid or credited to Employee in connection with such event under Section
4(a) hereof, in the sole discretion of the Committee. The Committee may
determine how to treat or settle any fractional share resulting under this
Agreement.

      

      5.           Other Terms of Restricted
Stock.

      

      (a)           Voting and Other Shareholder
Rights.  Employee shall be entitled to vote Restricted Stock on
any matter submitted to a vote of holders of Stock, and shall have all other
rights of a shareholder of the Company except as expressly limited by this
Agreement and the Plan.

      

      (b)           Consideration for Grant of
Restricted Stock.  Employee shall be required to pay no cash
consideration for the grant of the Restricted Stock, but Employee's performance
of services to the Company prior to the vesting of the Restricted Stock shall be
deemed to be consideration for this grant of Restricted Stock.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      

      (c)           Insider Trading Policy
Applicable.  Employee acknowledges that sales of shares
resulting from Restricted Stock that has become vested will be subject to the
Company's policies regulating trading by executive officers and
employees.

      

      (d)           Certificates Evidencing Restricted
Stock.  Restricted Stock
shall be evidenced by issuance of one or more certificates in the name of
Employee, bearing an appropriate legend referring to the terms, conditions, and
restrictions applicable hereunder, and shall remain in the physical custody of
the General Counsel of the Company or his designee until such time as such
shares of Restricted Stock have become vested and the restrictions hereunder
have therefore lapsed. In addition, Restricted Stock shall be subject to such
stop-transfer orders and other restrictive measures as the General Counsel of
the Company shall deem advisable under federal or state securities laws, rules
and regulations thereunder, and rules of the New York Stock Exchange, or to
implement the terms, conditions and restrictions hereunder, and the General
Counsel may cause a legend or legends to be placed on any such certificates to
make appropriate reference to the terms, conditions and restrictions
hereunder.

      

      (e)           Stock
Powers.  Employee agrees to execute and deliver to the Company
one or more stock powers, in such form as may be specified by the General
Counsel, authorizing the transfer of the Restricted Stock to the Company, at the
Grant Date or upon request at any time thereafter.

      

      6.           Employee
Representations and Warranties and Release.  As a condition
to any non-forfeiture of the Restricted Stock that vests upon Termination of
Employment, the Company may require Employee (i) to make any representation or
warranty to the Company as may be required under any applicable law or
regulation, and (ii) to execute a release from claims against the Company
arising at or before the date of such release, in such form as may be specified
by the Company.

      

      7.           Miscellaneous.

      

      (a)           Binding Agreement; Written
Amendments.  This Agreement shall be binding upon the heirs,
executors, administrators and successors of the parties. This Agreement
constitutes the entire agreement between the parties with respect to the
Restricted Stock, and supersedes any prior agreements or documents with respect
to the Restricted Stock. No amendment or alteration of this Agreement which may
impose any additional obligation upon the Company shall be valid unless
expressed in a written instrument duly executed in the name of the Company, and
no amendment, alteration, suspension or termination of this Agreement which may
materially impair the rights of Employee with respect to the Restricted Stock
shall be valid unless expressed in a written instrument executed by
Employee.

      

      (b)           No Promise of
Employment.  The Restricted Stock and the granting thereof
shall not constitute or be evidence of any agreement or understanding, express
or implied, that Employee has a right to continue as an officer or employee of
the Company for any period of time, or at any particular rate of
compensation.

      

       
(c)           Governing Law.  The
validity, construction, and effect of this Agreement shall be determined in
accordance with the laws (including those governing contracts) of the state of
New Jersey, without giving effect to principles of conflicts of laws, and
applicable federal law.

      

      (d)           Mandatory Tax
Withholding.  Unless otherwise determined by the Committee, at
the time of vesting the Company will withhold from any shares of Stock
deliverable, in accordance with Section 11(d)(i) of the Plan, the number of
shares of Stock having a value nearest to, but not exceeding, the amount of
income and employment taxes required to be withheld under applicable laws and
regulations, and pay the amount of such withholding taxes in cash to the
appropriate taxing authorities. Employee will be responsible for any withholding
taxes not satisfied by means of such mandatory withholding and for all taxes in
excess of such withholding taxes that may be due upon vesting of the Restricted
Stock.

      

      (e)           Notices.  Any
notice to be given the Company under this Agreement shall be addressed to the
Company at its principal executive offices, in care of the Vice President,
Corporate Services or the officer designated by the Company as responsible for
the administration of this Agreement, and any notice to Employee shall be
addressed to Employee at Employee’s address as then appearing in the records of
the Company.

      

      (i)           Shareholder
Rights.  Employee and any Beneficiary shall not have any rights
with respect to shares of Stock (including voting rights) covered by this
Agreement prior to the settlement and distribution of the shares of Stock as
specified herein.

      

      

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      Sample
Section 83(b) Election Form

      

      

      
        	
                Election
      Statement Under Internal Revenue Code Section 83(b)

              
	 	 
	
                Taxpayer
      Name:

              	
                _____________

              
	 	 
	
                 

                Address:

              	
                 

                _______________________________________________

              
	 	     _____________ 
      _____________________  ___________
	 	 
	
                Social
      Security or Taxpayer ID Number:

              	
                ______________________________

              
	 	 
	
                Description
      of Property:

              	
                _____
      [number] shares of common stock of New Jersey Resources Corporation
      granted as a an award of Restricted Stock on _____ __,
    200__

              
	 	 
	
                Taxable
      Year for which the election is being made:

              	
                200__
      (year of grant of Restricted Stock)

              
	 	 
	
                Nature
      of the restriction:

              	
                Restricted
      Stock is non-transferable and subject to a risk of forfeiture until
      vesting, The Restricted Stock vests __% per year on the first __
      anniversaries of the grant date.

              
	 	 
	
                Fair
      market value of stock on date of transfer:

              	
                $_____

              
	 	 
	
                Amount
      paid to purchase the stock:

              	
                $-
      0 -

              
	 
	
                I
      have furnished copies of this statement to persons required by U.S.
      Treasury Regulation 1.83-2(d)

              
	 	 
	
                 

                ________________
      Signature of Taxpayer

              	
                 

                Date
      _________________

              
	 	 
	
                ________________
      Print or type signature

              	 
      

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      This is a
sample Election Form which may be used to make a Section 83(b) election to be
taxed on a grant of Restricted Stock at the time of grant rather than at the
time of vesting. You are free to use whatever election form you and your
financial advisor deem appropriate. New Jersey Resources Corporation (the
"Company") makes no recommendation as to whether a person granted Restricted
Stock should make a Section 83(b) election, but issues the following cautionary
statements:

       

       

      Cautionary
Statements:

       

      
        	
                (1)

              	
                If
      you make a Section 83(b) election and later forfeit the Restricted Stock,
      you will not be able to rescind the election, claim a capital loss
      relating to the shares, receive a refund of the taxes paid, apply the
      taxes paid to any other liability you may have, or otherwise get any
      benefit whatsoever from your payment of taxes on the Restricted Stock.
      This is a risk that you will avoid if you do not file a Section 83(b)
      election, because absent the election you will be taxed at the time the
      Restricted Stock vests (if it is not previously forfeited) based on the
      fair market value of the shares at the time of
  vesting.

              

      

       

      
        	
                (2)

              	
                You
      must have cash available to pay the taxes due as a result of your making a
      Section 83(b) election, including withholding taxes. You may not sell any
      of the shares of Restricted Stock and you may not direct us to withhold
      any of the shares of Restricted Stock to satisfy this
      obligation.

              

      

       

      
        	
                (3)

              	
                In
      considering whether you might benefit from a Section 83(b) election, you
      should consider alternatives that might be of greater benefit. A Section
      83(b) election could be advantageous if the market value of the shares of
      Restricted Stock has gone up significantly at the time of vesting.
      However, if you do not make a Section 83(b) election but, instead, you use
      the cash that you would have paid in taxes to invest in additional shares
      of Company common stock in the market, in some cases your total return,
      net of taxes, would be greater. This strategy would also avoid the risk
      described in (1) above.

              

      

       

      
        	
                (4)

              	
                Filing
      a Section 83(b) election represents an increased financial investment in
      Company common stock. As an employee and based on your other equity awards
      and ownership of Company common stock, your financial well-being may
      already be significantly tied to the financial success of the Company. You
      should consider whether your savings and financial assets are adequately
      diversified before making a Section 83(b)
  election.

              

      

       

      
        	
                 
      

              	
                How
      to File a Section 83(b) Election

              

      

       

      
        	
                (1)

              	
                To
      be valid, the Section 83(b) Election Form must be filed with the Internal
      Revenue Service within 30 days after grant of the Restricted
      Stock.

              

      

       

      
        	
                (2)

              	
                To
      file the Section 83(b) Election, send it to the IRS Office where you file
      your income tax return. It is recommended that you send it certified mail,
      return receipt requested, so that you have proof of
  filing.

              

      

       

      
        	
                (3)

              	
                You
      must also send a copy to the Company. Please address the copy to the
      attention of Vice President, Human
Resources.

              

      

       

      
        	
                (4)

              	
                Attach
      a copy of the 83(b) when you file your income
  taxes.

              

      

       

       

      
        
           

        

        
          5exh10-21.htm

    Exhibit 10.21

    

     

    NEW
JERSEY RESOURCES CORPORATION

    2007
Stock Award and Incentive Plan

    Performance
Shares Agreement

    

    This Performance Shares Agreement (the
“Agreement”), which includes the attached “Terms and Conditions of Performance
Shares” (the “Terms and Conditions”) and the attached Exhibit A captioned
“Performance Goal and Earning
of Performance Shares”, confirms the grant on _______________ (the “Grant
Date”) by NEW JERSEY RESOURCES CORPORATION, a New Jersey corporation (the
“Company”), to _____________ (“Employee”),
under Sections 6(e), 6(i) and 7 of the 2007 Stock Award and Incentive Plan
(the “Plan”), of Performance Shares (the “Performance Shares”), including rights
to Dividend Equivalents as specified herein, as follows:

     

    
      
        	 
      	
                Target
      Number Granted:

              	
                ______ Performance
      Shares (“Target Number”)

              

      

       

      
        
          	 
      	
                  How Performance Shares are
      Earned and Vest: The Performance Shares, if not previously
      forfeited, (i) will be earned, if and to the extent that the
      Performance Goal 

                
	 
      	
                  defined
      on Exhibit A to this Agreement is achieved, with the corresponding
      number of Performance Shares earned (ranging from 0% to 150% of the Target
      Number) as specified on Exhibit A, and (ii) will vest as to the
      number of Performance Shares earned if Employee continues to be employed
      by the Company or a Subsidiary through September 30, 2010 (the “Stated
      Vesting Date”). In addition, if not previously forfeited, upon a Change in
      Control the Performance Shares will be deemed earned in an amount equal to
      the greater of the Target Number or the number of Performance
      Shares  that would have been earned based upon the actual level
      of achievement if the performance period had ended at the date of the
      Change in Control and will become immediately vested, and, if (and only
      if) the stock of the Company remains publicly traded after the Change in
      Control, any Performance Shares not earned will remain potentially
      earnable in accordance with the terms of this Agreement.  In
      addition, if not previously forfeited, the Performance Shares will be
      deemed earned and become vested upon the occurrence of certain events
      relating to Termination of Employment to the extent provided in
      Section 4 of the attached Terms and Conditions. The terms “vest” and
      “vesting” mean that the Performance Shares have become non-forfeitable
      upon the occurrence of a voluntary Termination of Employment by Employee
      (excluding a Retirement).  If the Performance Goal is not met
      (or not fully met) and the Performance Shares are not otherwise deemed
      earned by the Earning Date (as defined below), the Performance Shares (or
      the unearned portion of the Performance Shares) will be immediately
      forfeited.  If Employee has a Termination of Employment prior to
      a Stated Vesting Date and the Performance Shares are not otherwise deemed
      earned and vested by that date, the Performance Shares will be immediately
      forfeited except as otherwise provided in Section 4 of the attached
      Terms and Conditions. Forfeited Performance Shares cease to be outstanding
      and in no event will thereafter result in any delivery of shares of Stock
      to Employee.

                

        

      

       

      
        
          	 
      	
                  Performance Goal and Earning
      Date: The Performance Goal and Earning Date, and the number of
      Performance Shares earned for specified levels of  performance
      

                
	 
      	
                   at
      the Earning Date, shall be as specified in Exhibit A
      hereto.

                

        

      

       

      
        
          	 
      	
                  Settlement: Performance
      Shares that are to be settled hereunder, including Performance Shares
      credited as a result of Dividend Equivalents, will be settled by 
      

                
	 
      	
                  delivery
      of one share of Stock, for each Performance Share being settled.
      Settlement shall occur at the time specified in Section 6 of the
      attached Terms and
Conditions.

                

        

      

    

     

    The Performance Shares are subject to
the terms and conditions of the Plan and this Agreement, including the Terms and
Conditions of Performance Shares attached hereto and deemed a part hereof. The
number of Performance Shares and the kind of shares deliverable in settlement
and other terms and conditions of the Performance Shares are subject to
adjustment in accordance with Section 5 of the attached Terms and
Conditions and Section 11(c) of the Plan.

    

    Employee acknowledges and agrees that
(i) the Performance Shares are nontransferable, except as provided in
Section 3 of the attached Terms and Conditions and Section 11(b) of the
Plan, (ii) the Performance Shares are subject to forfeiture in the event of
Employee’s Termination of Employment in certain circumstances prior to vesting,
as specified in Section 4 of the attached Terms and Conditions, and
(iii) sales of shares of Stock will be subject to any Company policy
regulating trading by employees.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Capitalized terms used in this
Agreement but not defined herein shall have the same meanings as in the
Plan.

    

    IN WITNESS WHEREOF, NEW JERSEY
RESOURCES CORPORATION has caused this Agreement to be executed by its officer
thereunto duly authorized.

    

    NEW JERSEY RESOURCES
CORPORATION

    

    

    By:_____________________

    LAURENCE M. DOWNES

    Chairman & CEO

    

    

    EMPLOYEE

    

    

    ____________________

    NAME

    Title

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

    

    

    

    TERMS AND
CONDITIONS OF PERFORMANCE SHARES

    

    The following Terms and Conditions
apply to the Performance Shares granted to Employee by NEW JERSEY RESOURCES
CORPORATION (the “Company”) and Performance Shares resulting from Dividend
Equivalents (as defined below), if any, as specified in the Performance Shares
Agreement (of which these Terms and Conditions form a part). Certain terms of
the Performance Shares, including the number of Performance Shares granted,
vesting date(s) and settlement date, are set forth on the cover page hereto and
Exhibit A, which are an integral part of this Agreement.

    

    1. General.  The
Performance Shares are granted to Employee under the Company’s 2007 Stock Award
and Incentive Plan (the “Plan”), which has been previously delivered to Employee
and/or is available upon request to the Corporate Benefits Department. All of
the applicable terms, conditions and other provisions of the Plan are
incorporated by reference herein. Capitalized terms used in this Agreement but
not defined herein shall have the same meanings as in the Plan. If there is any
conflict between the provisions of this document and mandatory provisions of the
Plan, the provisions of the Plan govern. By accepting the grant of the
Performance Shares, Employee agrees to be bound by all of the terms and
provisions of the Plan (as presently in effect or later amended), the rules and
regulations under the Plan adopted from time to time, and the decisions and
determinations of the Leadership Development and Compensation Committee of the
Company’s Board of Directors (the “Committee”) made from time to
time.

    

    2.  Account for
Employee. The
Company shall maintain a bookkeeping account for Employee (the “Account”)
reflecting the number of Performance Shares then credited to Employee hereunder
as a result of such grant of Performance Shares and any crediting of additional
Performance Shares to Employee pursuant to payments equivalent to dividends paid
on shares of Stock under Section 5 hereof (“Dividend
Equivalents”).

    

    3.  Nontransferability.
Until Performance Shares become settleable in accordance with the terms of this
Agreement, Employee may not transfer Performance Shares or any rights hereunder
to any third party other than by will or the laws of descent and distribution,
except for transfers to a Beneficiary or as otherwise permitted and subject to
the conditions under Section 11(b) of the Plan. The foregoing notwithstanding,
if any Performance Share constitutes a deferral of compensation under Code
Section 409A, the Performance Share shall not be subject to anticipation,
alkienation, sale, transfer, assignment, pldege, encombrance, attachment, or
garnishment by creditors of Employee or any Beneficiary, and shall not be
subject to offset by the Company at any time before the settlement
date.

    

    4.  Termination
Provisions. The following provisions will govern the vesting and
forfeiture of the Performance Shares that are outstanding at the time of
Employee’s Termination of Employment (as defined below), unless otherwise
determined by the Committee (subject to Section 8(a) hereof):

    

    (a) Death or Disability. In the
event of Employee’s Termination of Employment due to death or Disability (as
defined below) the Performance Shares will be deemed earned in an amount equal
to the greater of the Target Number or the number of Performance Shares that
would have been earned based upon the actual level of achievement if the
performance period had ended at the date of the Termination of Employment. A
Pro-Rata Portion (as defined below) of the Performance Shares earned, to the
extent not previously vested, will vest immediately, and such Performance
Shares, together with any then-outstanding Performance Shares that previously
became vested, will be settled in accordance with Section 6(a) hereof. Any
portion of the then-outstanding Performance Shares not earned or not vested at
or before the date of Termination will be forfeited.

    

    (b) Termination by the Company or
Voluntarily by the Employee. In the event of Employee’s Termination of
Employment by the Company for any reason other than Disability or by Employee
voluntarily (other than a Retirement), the portion of the then-outstanding
Performance Shares not vested at the date of Termination will be
forfeited.

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

    

    

    

     (c) Retirement. In the event of
Employee’s Termination of Employment due to Retirement (as defined below), the
Performance Shares will be deemed earned in an amount equal to fifty percent of
the Target Number. A Pro-Rata Portion (as defined below) of the Performance
Shares earned, to the extent not previously vested, will vest immediately, and
such Performance Shares, together with any then-outstanding Performance
Shares that previously became vested, will be settled in accordance with Section
6(a) hereof. Any portion of the then-outstanding Performance Shares not earned
or not vested at or before the date of Termination will be
forfeited.

    

    (d) Certain Definitions. The
following definitions apply for purposes of this Agreement:

    

    (i) “Disability” means Employee has
been incapable of substantially fulfilling the positions, duties,
responsibilities and obligations of his employment because of physical, mental
or emotional incapacity resulting from injury, sickness or disease for a period
of at least six consecutive months. The Company and Employee shall agree on the
identity of a physician to resolve any question as to Employee’s disability. If
the Company and Employee cannot agree on the physician to make such
determination, then the Company and Employee shall each select a physician and
those physicians shall jointly select a third physician, who shall make the
determination. The determination of any such physician shall be final and
conclusive for all purposes of this Agreement. In the case of Performance Shares
that do not constitute a deferral of compensation under Section 409A of the
Code, only the Company can initiate a Termination of Employment due to
Disability.

    

    (ii) “Pro Rata Portion” means a
fraction the numerator of which is the number of days that have from the Grant
Date to the date of Employee’s Termination of Employment and the denominator of
which is the number of days from the Grant Date to the Stated Vesting
Date.

    

    (iii) “Retirement” means the Employee
terminates employment at or after age 65, or at or after age 55 with 20 or more
years of service.

    

    (iv) “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the Code
(“Section 424(f) Corporation”) and any partnership, limited liability
company or joint venture in which either the Company or Section 424(f)
Corporation is at least a fifty percent (50%) equity participant.

    

    (v) “Termination of Employment” and
“Termination” means the earliest time at which Employee is not employed by the
Company or a Subsidiary of the Company and is not serving as a non-employee
director of the Company or a Subsidiary of the Company.

    

    5.  Dividend
Equivalents and Adjustments.

    

    (a) Dividend Equivalents.
Dividend Equivalents will be credited on Performance Shares (other than
Performance Shares that, at the relevant record date, previously have been
settled or forfeited) and deemed reinvested in additional Performance Shares.
Dividend Equivalents will be credited with respect to unearned Performance
Shares, earned but not vested Performance Shares, and vested but not settled
Performance Shares. Dividend Equivalents will be credited as follows, except
that the Company may vary the manner of crediting (for example, by crediting
cash dividend equivalents rather than additional Performance Shares) for
administrative convenience:

    

    (i) Cash Dividends. If the
Company declares and pays a dividend or distribution on shares of Stock in the
form of cash, then additional Performance Shares shall be credited to Employee’s
Account in lieu of payment or crediting of cash dividend equivalents equal to
the number of Performance Shares credited to the Account as of the relevant
record date multiplied by the amount of cash paid per share of Stock in such
dividend or distribution divided by the Fair Market Value of a share of Stock at
the payment date for such dividend or distribution.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

    

    

    

    (ii) Non-Share Dividends. If the
Company declares and pays a dividend or distribution on shares of Stock in the
form of property other than shares of Stock, then a number of additional
Performance Shares shall be credited to Employee’s Account as of the payment
date for such dividend or distribution equal to the number of Performance Shares
credited to the Account as of the record date for such dividend or distribution
multiplied by the fair market value of such property actually paid as a dividend
or distribution on each outstanding share of Stock at such payment date, divided
by the Fair Market Value of a share of Stock at such payment date.

     

    (iii) Share Dividends and Splits.
If the Company declares and pays a dividend or distribution on shares of Stock
in the form of additional shares of Stock, or there occurs a forward split of
shares of Stock, then a number of additional Performance Shares shall be
credited to Employee’s Account as of the payment date for such dividend or
distribution or forward split equal to the number of Performance Shares credited
to the Account as of the record date for such dividend or distribution or split
multiplied by the number of additional shares of Stock actually paid as a
dividend or distribution or issued in such split in respect of each outstanding
share of Stock.

    

    (b) Adjustments. The number of
Performance Shares credited to Employee’s Account shall be appropriately
adjusted in order to prevent dilution or enlargement of Employee’s rights with
respect to Performance Shares or to reflect any changes in the number of
outstanding shares of Stock resulting from any event referred to in Section
11(c) of the Plan, taking into account any Performance Shares credited to
Employee in connection with such event under Section 5(a) hereof. In furtherance
of the foregoing, in the event of an equity restructuring, as defined in FAS
123R, which affects the shares of Stock, Employee shall have a legal right to an
adjustment to Employee’s Performance Shares which shall preserve without
enlarging the value of the Performance Shares, with the manner of such
adjustment to be determined by the Committee in its discretion.

    

    (c) Risk of Forfeiture and Settlement of
Performance Shares Resulting from Dividend Equivalents and Adjustments.
Performance Shares which directly or indirectly result from Dividend
Equivalents on or adjustments to a Performance Share granted hereunder shall be
subject to the same risk of forfeiture and other conditions as apply to the
granted Performance Share and will be settled at the same time as the granted
Performance Share.

    

    6.  Settlement and
Deferral.

    

    (a) Settlement Date. Performance
Shares granted hereunder that have been earned and vested, together with
Performance Shares credited as a result of Dividend Equivalents with respect
thereto, shall be settled by delivery of one share of Stock for each Performance
Share being settled. Settlement of a Performance Share granted hereunder shall
occur at the Stated Vesting Date (with shares to be delivered within five
business days after the Stated Vesting Date); provided, however, that settlement
shall occur earlier (i) within 90 days after the date of death of
Employee, (ii) within 60 days after termination due to Disability (subject
to Section 6(c)(iii), if applicable ), or (iii) upon a Change in
Control except that, if the Performance Shares are subject to Section 6(c)
hereof, no distribution shall be triggered if the Change in Control does not
involve an event that comes within the definition under
Section 409A(a)(2)(A)(v)); and provided further, that settlement shall be
deferred if so elected by Employee in accordance with Section 6(b) hereof.
Settlement of Performance Shares which directly or indirectly result from
Dividend Equivalents on Performance Shares granted hereunder shall occur at the
time of settlement of the granted Performance Share.

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

    

    

    

    (b) Elective Deferral. The
Committee may determine to permit Employee to elect to defer settlement (or
redefer) if such election would be permissible under Section 409A of the
Code. In addition to any applicable requirements under Section 409A of the
Code, any such deferral election shall be made only while Employee remains
employed and at a time permitted under Section 409A. Any elective deferral
will be subject to such additional terms and conditions as the Vice President —
Corporate Services, or the officer designated by the Company as responsible for
administration of the Agreement, may reasonably impose.

    

    (c) Compliance with Code
Section 409A. Other provisions of this Agreement notwithstanding, if
Performance Shares constitute a "deferral of compensation" under
Section 409A of the Code (“§ 409A”) as presently in effect or hereafter
amended (i.e., the Performance Shares are not excluded or exempted under § 409A
or a regulation or other official governmental guidance thereunder; Note: an
elective deferral under Section 6(b) would cause the Performance Shares to be a
deferral of compensation subject to § 409A, and reaching Retirement eligibility
under Section 4 could cause a portion of the Performance Shares to be a deferral
of compensation subject to § 409A), settlement shall be subject to the following
rules:

    

    (i) The Company shall have no authority
to accelerate distributions relating to such Performance Shares in excess of the
authority permitted under § 409A;

     

    (ii) Any distribution relating to such
Performance Shares triggered by Employee’s Termination of Employment and
intended to qualify under § 409A(a)(2)(A)(i) shall be made only at the time that
Employee has had a “separation from service” within the meaning of Treasury
Regulation § 1.409A-1(h) (or earlier at such time, after a Termination of
Employment, that there occurs another event triggering a distribution under the
Plan or this Agreement in compliance with § 409A);

    

    (iii) Any distribution relating to such
Performance Shares subject to § 409A(a)(2)(A)(i) that would be made within six
months following a separation from service of a “Specified Employee” (or “key
employee”) as defined under § 409A(a)(2)(B)(i) shall instead occur at the
expiration of the six-month period under § 409A(a)(2)(B)(i). In the case of
installments, this delay shall not affect the timing of any installment
otherwise payable after the six-month delay period. During such six-month delay
period, settlement will not be accelerated upon occurrence of a Change in
Control, and otherwise accelerated settlement will only be permitted to the
extent permissible under § 409A; and

    

    (iv) Any rights of Employee or retained
authority of the Company with respect to Performance Shares hereunder shall be
automatically modified and limited to the extent necessary so that Employee will
not be deemed to be in constructive receipt of income relating to the
Performance Shares prior to the distribution of shares to Employee and so that
Employee shall not be subject to any penalty under § 409A.

    

    7.  Employee
Representations and Warranties Upon Settlement. As a condition to the
settlement of the Performance Shares, the Company may require Employee to make
any representation or warranty to the Company as may be required under any
applicable law or regulation.

    

    8.  Miscellaneous.

    

    (a) Binding Agreement; Written
Amendments. This Agreement shall be binding upon the heirs, executors,
administrators and successors of the parties. This Agreement constitutes the
entire agreement between the parties with respect to the Performance Shares, and
supersedes any prior agreements or documents with respect to the Performance
Shares. No amendment or alteration of this Agreement which may impose any
additional obligation upon the Company shall be valid unless expressed in a
written instrument duly executed in the name of the Company, and no amendment,
alteration, suspension or termination of this Agreement which may materially
impair the rights of Employee with respect to the Performance Shares shall be
valid unless expressed in a written instrument executed by
Employee.

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

    

    

    

    (b) No Promise of Employment. The
Performance Shares and the granting thereof shall not constitute or be evidence
of any agreement or understanding, express or implied, that Employee has a right
to continue as an officer or employee of the Company for any period of time, or
at any particular rate of compensation.

    

    (c) Governing Law. The validity,
construction, and effect of this Agreement shall be determined in accordance
with the laws (including those governing contracts) of the state of New Jersey,
without giving effect to principles of conflicts of laws, and applicable federal
law.

    

    (d) Fractional Performance Shares and
Shares. The number of Performance Shares credited to Employee’s Account
shall include fractional Performance Shares calculated to at least three decimal
places, unless otherwise determined by the Committee. Unless settlement is
effected through a third-party broker or agent that can accommodate fractional
shares (without requiring issuance of a fractional Share by the Company), upon
settlement of the Performance Shares Employee shall be paid, in cash, an amount
equal to the value of any fractional Share that would have otherwise been
deliverable in settlement of such Performance Shares.

    

    (e) Mandatory Tax Withholding.
Unless otherwise determined by the Committee, at the time of vesting and/or
settlement the Company will withhold from any shares of Stock deliverable in
settlement of the Performance Shares, in accordance with Section 11(d)(i)
of the Plan, the number of shares of Stock having a value nearest to, but not
exceeding, the amount of income and employment taxes required to be withheld
under applicable laws and regulations, and pay the amount of such withholding
taxes in cash to the appropriate taxing authorities. Employee will be
responsible for any withholding taxes not satisfied by means of such mandatory
withholding and for all taxes in excess of such withholding taxes that may be
due upon vesting or settlement of Performance Shares.

    

    (f) Statements. An individual
statement of each Employee’s Account will be issued to Employee at such times as
may be determined by the Company. Such a statement shall reflect the number of
Performance Shares credited to Employee’s Account, transactions therein during
the period covered by the statement, and other information deemed relevant by
the Company. Such a statement may be combined with or include information
regarding other plans and compensatory arrangements. Employee’s statements shall
be deemed a part of this Agreement, and shall evidence the Company’s obligations
in respect of Performance Shares, including the number of Performance Shares
credited as a result of Dividend Equivalents (if any). Any statement containing
an error shall not, however, represent a binding obligation to the extent of
such error, notwithstanding the inclusion of such statement as part of this
Agreement.

    

    (g) Unfunded Obligations. The
grant of the Performance Shares and any provision for distribution in settlement
of Employee’s Account hereunder shall be by means of bookkeeping entries on the
books of the Company and shall not create in Employee any right to, or claim
against any, specific assets of the Company, nor result in the creation of any
trust or escrow account for Employee. With respect to Employee’s entitlement to
any distribution hereunder, Employee shall be a general creditor of the
Company.

    

    (h) Notices. Any notice to be
given the Company under this Agreement shall be addressed to the Company at its
principal executive offices, in care of the Vice President – Corporate Services,
or the officer designated by the Company as responsible for administration of
the Agreement, and any notice to Employee shall be addressed to Employee at
Employee’s address as then appearing in the records of the Company.

    

    (i) Shareholder Rights. Employee
and any Beneficiary shall not have any rights with respect to shares of Stock
(including voting rights) covered by this Agreement prior to the settlement and
distribution of the shares of Stock as specified herein. Specifically,
Performance Shares represent a contractual right to receive shares of Stock in
the future, subject to the terms and conditions of this Agreement and the Plan,
and do not represent ownership of shares of Stock at any time before the
settlement of this Award.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Exhibit A

    NEW
JERSEY RESOURCES CORPORATION

    2007 Stock Award and Incentive
Plan

    Performance Goal and Earning of
Performance Shares

    

    The number of Performance Shares earned
by Participant shall be determined as of September 30, 2010 (the “Earning
Date”), based on the Company’s “Total Shareholder Return Performance” in the
33-month  period ending at that date as compared against an
established group of comparable companies (the “Comparison Group”) selected by
the Committee and attached hereto as Schedule A. The number of Performance
Shares earned will then be determined based on the following grid:

    

    
      	 
      	 
      	 
      	 
      
	
              Company
      Total

            	 
      
	
              Shareholder
      Return

            	
              Performance
      Shares Earned as

            
	
              Performance—

            	
              Percentage
      of

            
	
              Percentile
      Achieved

            	
              Target
      Performance Shares

            
	
              Less
      than 27th

            	 
      	
              0

            	
              %

            
	
              27th
      (threshold)

            	 
      	
              50

            	
              %

            
	
              36th

            	 
      	
              60

            	
              %

            
	
              45th

            	 
      	
              70

            	
              %

            
	
              55th

            	 
      	
              85

            	
              %

            
	
              64th

            	 
      	
              100

            	
              %

            
	
              73rd

            	 
      	
              120

            	
              %

            
	
              82nd

            	 
      	
              135

            	
              %

            
	
              91st
      and above

            	 
      	
              150

            	
              %

            

    

    

    Upon
achievement of Total Shareholder Return at a percentile between any two
specified percentiles, the Performance Shares earned will be mathematically
interpolated on a straight-line basis.

    

    Determinations of the Committee
regarding Total Shareholder Return performance, such performance as a percentile
within the Comparison Group, the resulting Performance Shares earned and related
matters will be final and binding on Participant. The Committee shall specify a
reasonable methodology for dealing with companies in the Comparison Group that
cease to be publicly traded companies engaged in a business comparable to that
of the Company, subject to compliance with Treasury Regulation § 1.162-27(e)(2).
Total Shareholder Return shall be calculated in a manner that reflects the
economic return to shareholders, such that any equity restructuring of the
Company or any company in the Comparison Group shall not have the effect of
enlarging or reducing the rights of Employee except to the extent of its effects
on the real economic return of a shareholder.

    
 

      

      
        
           

        

        
          6

          
            

          

        

        
           

          
            Exhibit 10.21

          

        

      

     

    Schedule A

    

     

     

    INSERT PEER GROUP

     

     

     

    

    
      
        
           

        

        
          7

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