Document:

sburgess@aglresources.com

                                                                                                                                                                                                                  
Exhibit 10.1.af

     

     

      
        

      

    

     

    AGL
      RESOURCES INC.

     

    NONQUALIFIED
      SAVINGS PLAN

     

    As
      Amended and Restated Effective January 1, 2007

     

     

     

     

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    AGL
      RESOURCES INC.

     

    NONQUALIFIED
      SAVINGS PLAN

     

    Effective
      as of the 1st day of January, 2007, AGL Resources Inc., a corporation duly
      organized and existing under the laws of the State of Georgia (the “Controlling
      Company”), hereby amends and restates the AGL Resources Inc. Nonqualified
      Savings Plan (the “Plan”). The Plan was originally established as of July 1,
      1995, and was previously amended and restated effective as of January 1,
      2001.

     

     

    STATEMENT
      OF PURPOSE

     

    A. The
      primary purpose of the Plan is to recognize the contributions made to the
      Controlling Company and its participating affiliates by certain employees and
      to
      reward those contributions by providing eligible employees with an opportunity
      to accumulate savings for their future security.

     

    B. The
      Plan
      is intended to be an unfunded nonqualified deferred compensation plan maintained
      by the Controlling Company primarily for the purpose of providing deferred
      compensation for a select group of management or highly compensated employees
      (within the meaning of §§ 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of
      the Employee Retirement Income Security Act of 1974, as amended), and shall
      be
      construed in all respects in accordance with such intended
      purposes.

     

    C. Any
      trust
      fund established to maintain and invest the amounts contributed to the Plan
      shall be established under a trust agreement, which meets the requirements
      of a
“rabbi trust,” pursuant to guidelines issued by the Internal Revenue Service
      (the “IRS”).

     

    D. Regardless
      of the establishment of a trust fund, all assets of the Plan shall remain assets
      of the Controlling Company and shall be subject to the general creditors of
      the
      Controlling Company. Participants and Beneficiaries shall have only the rights
      of unsecured creditors with respect to any assets of the Plan.

     

     

    STATEMENT
      OF AGREEMENT

     

    In
      order
      to amend and restate the Plan with the purposes and goals as hereinabove
      described, the Controlling Company hereby sets forth the terms and provisions
      of
      the amended and restated Plan as follows

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	 	
              Page

            
	 	 
	
              STATEMENT
                OF PURPOSE

            	
              1

            
	 	 
	
              STATEMENT
                OF AGREEMENT

            	
              1

            
	 	 	 
	
              ARTICLE
                I

            	
              DEFINITIONS

            	
              5

            
	
              1.1

            	
              1934
                Act

            	
              5

            
	
              1.2

            	
              Account

            	
              5

            
	
              1.3

            	
              Active
                Participant

            	
              5

            
	
              1.4

            	
              Administrative
                Committee

            	
              5

            
	
              1.5

            	
              Affiliate

            	
              5

            
	
              1.6

            	
              Aggregated
                Arrangements

            	
              5

            
	
              1.7

            	
              Before-Tax
                Account

            	
              5

            
	
              1.8

            	
              Before-Tax
                Contributions

            	
              5

            
	
              1.9
                

            	
              Beneficiary

            	
              5

            
	
              1.10

            	
              Board

            	
              5

            
	
              1.11

            	
              Bonus

            	
              6

            
	
              1.12

            	
              Bonus
                Compensation

            	
              6

            
	
              1.13

            	
              Break
                in Service

            	
              6

            
	
              1.14

            	
              Change
                in Control

            	
              6

            
	
              1.15

            	
              Code

            	
              7

            
	
              1.16

            	
              Company
                Contributions

            	
              7

            
	
              1.17

            	
              Company
                Stock

            	
              7

            
	
              1.18

            	
              Compensation

            	
              7

            
	
              1.19

            	
              Contributions

            	
              7

            
	
              1.20

            	
              Controlling
                Company

            	
              7

            
	
              1.21

            	
              Covered
                Employee

            	
              7

            
	
              1.22

            	
              Deferral
                Election

            	
              7

            
	
              1.23

            	
              Disabled

            	
              8

            
	
              1.24

            	
              Effective
                Date

            	
              8

            
	
              1.25

            	
              Employee

            	
              8

            
	
              1.26

            	
              Entry
                Date

            	
              8

            
	
              1.27

            	
              Forfeiture

            	
              8

            
	
              1.28

            	
              Hour
                of Service

            	
              8

            
	
              1.29

            	
              Investment
                Committee

            	
              9

            
	
              1.30

            	
              Investment
                Fund or Funds

            	
              9

            
	
              1.31

            	
              Key
                Employee

            	
              9

            
	
              1.32

            	
              Leave
                of Absence

            	
              9

            
	
              1.33

            	
              Matching
                Account

            	
              10

            
	
              1.34

            	
              Matching
                Contributions

            	
              10

            
	
              1.35

            	
              Maternity
                or Paternity Leave

            	
              10

            
	
              1.36

            	
              Normal
                Retirement Age

            	
              10

            
	
              1.37

            	
              Participant

            	
              10

            
	
              1.38

            	
              Participating
                Company

            	
              10

            
	
              1.39

            	
              Payment
                Election

            	
              10

            
	
              1.40

            	
              Plan

            	
              10

            
	
              1.41

            	
              Plan
                Year

            	
              10

            
	
              1.42

            	
              Retirement
                Savings Plus Plan or RSP

            	
              10

            
	
              1.43

            	
              Separate
                from Service or Separation from Service

            	
              10

            
	
              1.44

            	
              Special
                Bonus Deferral Election

            	
              10

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

    (continued)

    
      	 	 	
              Page

            
	 	 	 
	
              1.45

            	
              Spouse
                or Surviving Spouse

            	
              11

            
	
              1.46

            	
              Trust
                or Trust Agreement

            	
              11

            
	
              1.47

            	
              Trustee

            	
              11

            
	
              1.48

            	
              Trust
                Fund

            	
              11

            
	
              1.49

            	
              Valuation
                Date

            	
              11

            
	
              1.50

            	
              Year
                of Vesting Service

            	
              11

            
	 	 	 
	
              ARTICLE
                II

            	
              ELIGIBILITY

            	
              11

            
	
              2.1

            	
              Initial
                Eligibility Requirements

            	
              11

            
	
              2.2

            	
              Subsequent
                Eligibility Requirements

            	
              12

            
	
              2.3

            	
              Treatment
                of Interruptions of Service

            	
              12

            
	
              2.4

            	
              Change
                in Status

            	
              12

            
	 	 	 
	
              ARTICLE
                III

            	
              CONTRIBUTIONS

            	
              12

            
	
              3.1

            	
              Before-Tax
                Contributions

            	
              12

            
	
              3.2

            	
              Matching
                Contributions

            	
              14

            
	
              3.3

            	
              Form
                of Contributions

            	
              15

            
	 	 	 
	
              ARTICLE
                IV

            	
              PARTICIPANTS’
                ACCOUNTS; CREDITING AND ALLOCATIONS

            	
              15

            
	
              4.1

            	
              Establishment
                of Participants’ Accounts

            	
              15

            
	
              4.2

            	
              Allocation
                and Crediting of Before-Tax and Matching Contributions

            	
              15

            
	
              4.3

            	
              Allocation
                and Crediting of Investment Experience

            	
              15

            
	
              4.4

            	
              Notice
                to Participants of Account Balances

            	
              16

            
	
              4.5

            	
              Good
                Faith Valuation Binding

            	
              16

            
	
              4.6

            	
              Errors
                and Omissions in Accounts

            	
              16

            
	 	 	 
	
              ARTICLE
                V

            	
              INVESTMENT
                OF ACCOUNTS

            	
              16

            
	
              5.1

            	
              Establishment
                of Trust Fund

            	
              16

            
	
              5.2

            	
              Investment
                Funds

            	
              17

            
	
              5.3

            	
              Investment
                Procedures

            	
              18

            
	
              5.4

            	
              Acquisition
                of Company Stock

            	
              19

            
	
              5.5

            	
              Value
                of Assets

            	
              19

            
	 	 	 
	
              ARTICLE
                VI

            	
              VESTING
                IN ACCOUNTS

            	
              20

            
	
              6.1

            	
              General
                Vesting Rule

            	
              20

            
	
              6.2

            	
              Vesting
                Upon Other Occurrences

            	
              20

            
	
              6.3

            	
              Timing
                of Forfeitures

            	
              20

            
	
              6.4

            	
              Vesting
                of Matching Contribution Accounts for NUI Participants

            	
              20

            
	 	 	 
	
              ARTICLE
                VII

            	
              PAYMENT
                OF BENEFITS

            	
              21

            
	
              7.1

            	
              Benefit
                Payments

            	
              21

            
	
              7.2

            	
              Election
                of Timing and Form of Benefit Payment

            	
              21

            
	
              7.3

            	
              Forms
                of Payment Upon Separation from Service

            	
              23

            
	
              7.4

            	
              Beneficiary
                Designation

            	
              23

            
	
              7.5

            	
              Hardship
                Withdrawals

            	
              24

            
	
              7.6

            	
              Unclaimed
                Benefits

            	
              24

            
	
              7.7

            	
              Claims

            	
              25

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
       

      TABLE
        OF CONTENTS

      (continued)

       

    

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                VIII

            	
              ALLOCATION
                OF AUTHORITY AND RESPONSIBILITIES

            	
              26

            
	
              8.1

            	
              Administrative
                Committee

            	
              26

            
	
              8.2

            	
              Controlling
                Company and Board

            	
              28

            
	
              8.3

            	
              Trustee

            	
              29

            
	
              8.4

            	
              Delegation

            	
              29

            
	 	 	 
	
              ARTICLE
                IX

            	
              AMENDMENT,
                TERMINATION AND ADOPTION

            	
              29

            
	
              9.1

            	
              Amendment

            	
              29

            
	
              9.2

            	
              Termination

            	
              29

            
	
              9.3

            	
              Delegation

            	
              29

            
	 	 	 
	
              ARTICLE
                X

            	
              MISCELLANEOUS

            	
              31

            
	
              10.1

            	
              Nonalienation
                of Benefits and Spendthrift Clause

            	
              31

            
	
              10.2

            	
              Headings

            	
              32

            
	
              10.3

            	
              Construction,
                Controlling Law

            	
              32

            
	
              10.4

            	
              No
                Contract of Employment

            	
              32

            
	
              10.5

            	
              Legally
                Incompetent

            	
              32

            
	
              10.6

            	
              Heirs,
                Assigns and Personal Representatives

            	
              32

            
	
              10.7

            	
              Unsecured
                Creditor Rights

            	
              32

            
	
              10.8

            	
              Legal
                Action

            	
              32

            
	
              10.9

            	
              Severability

            	
              33

            
	
              10.10

            	
              Predecessor
                Service

            	
              33

            
	
              10.11

            	
              Plan
                Expenses

            	
              33

            
	 	 	 
	
              SCHEDULE
                A

            	 	
              34

            
	 	 	 
	
              SCHEDULE
                B

            	 	
              35

            

    

    

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    DEFINITIONS

     

    For
      purposes of the Plan, the following terms, when used with an initial capital
      letter, shall have the meanings set forth below unless a different meaning
      plainly is required by the context.

     

    1.1  1934
      Act
      shall
      mean the Securities Exchange Act of 1934, as amended.

     

    1.2  Account
      shall
      mean, with respect to a Participant or Beneficiary, the amount of money or
      other
      property as is evidenced by the last balance posted in accordance with the
      terms
      of the Plan to the account record established for such Participant or
      Beneficiary. The Administrative Committee may establish and maintain separate
      subaccounts for each Participant and Beneficiary, provided allocations are
      made
      to such subaccounts in the manner described in Article IV of the Plan. “Account”
shall refer to the aggregate of all separate subaccounts or to individual,
      separate subaccounts, as may be appropriate in context.

     

    1.3  Active
      Participant
      shall
      mean, for any Plan Year (or any portion thereof), any Covered Employee who
      has
      been admitted to, and not removed from, active participation since the last
      date
      his employment commenced or recommenced.

     

    1.4  Administrative
      Committee
      shall
      mean the committee designated by the Board which shall act on behalf of the
      Controlling Company to administer the Plan; provided, the Controlling Company
      may act in lieu of the Administrative Committee as it deems appropriate or
      desirable.

     

    1.5  Affiliate
      shall
      mean, as of any date, (i) a Participating Company, and (ii) any
      company, person or organization which, on such date, (A) is a member of the
      same controlled group of corporations [within the meaning of Code §414(b)] as is
      a Participating Company; (B) is a trade or business (whether or not
      incorporated) which controls, is controlled by or is under common control with
      [within the meaning of Code §414(c)] a Participating Company; (C) is a
      member of an affiliated service group [as defined in Code §414(m)] which
      includes a Participating Company; or (D) is required to be aggregated with
      a Participating Company pursuant to regulations promulgated under Code
§414(o).

     

    1.6  Aggregated
      Arrangements
      shall
      mean the Plan and any other plan that that would be considered as a single
      plan
      with the Plan under Code § 409A and applicable guidance issued
      thereunder.

     

    1.7  Before-Tax
      Account
      shall
      mean the separate subaccount(s) established and maintained on behalf of a
      Participant or his Beneficiary to reflect his interest in the Plan attributable
      to his Before-Tax Contributions.

     

    1.8  Before-Tax
      Contributions
      shall
      mean the amounts paid by each Participating Company to the Plan at the election
      of Participants, all pursuant to the terms of §3.1(a).

     

    1.9  Beneficiary
      shall
      mean the person(s) designated in accordance with §7.4 to receive any death
      benefits that may be payable under the Plan upon the death of a
      Participant.

     

    1.10  Board
      shall
      mean the board of directors of the Controlling Company. A reference to the
      board
      of directors of any other Participating Company shall specify it as
      such.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    1.11  Bonus
      shall
      mean an annual bonus payable under the terms of the AGL Resources Inc. Annual
      Incentive Plan (or its successor plan) or any other annual bonus plan sponsored
      by a Participating Company.

     

    1.12  Bonus
      Compensation
      shall
      mean that portion of a Participant’s Compensation that is attributable to a
      Bonus.

     

    1.13  Break
      in Service
      shall
      mean, with respect to an Employee, any year during which such Employee fails
      to
      complete more than 500 Hours of Service; provided, a Break in Service shall
      not
      be deemed to have occurred during any period for which he is granted a Leave
      of
      Absence if he returns to the service of an Affiliate within the time permitted
      as set forth in the Plan. A Break in Service shall be deemed to have commenced
      on the first day of the year in which it occurs.

     

    For
      purposes of determining whether or not an Employee has incurred a Break in
      Service, an Employee absent from work due to a Maternity or Paternity Leave
      shall be credited with (i) the number of Hours of Service with which he normally
      would have been credited but for the Maternity or Paternity Leave, or (ii)
      if
      the Administrative Committee is unable to determine the hours described in
      (i),
      8 Hours of Service for each day of absence included in the Maternity or
      Paternity Leave; provided, the maximum number of Hours of Service credited
      for
      purposes of this Section shall not exceed 501 hours. Hours of Service so
      credited shall be applied only to the year in which the Maternity or Paternity
      Leave begins, unless such Hours of Service are not required to prevent the
      Employee from incurring a Break in Service, in which event such Hours of Service
      shall be credited to the Employee in the immediately following year. No Hour
      of
      Service shall be credited due to Maternity or Paternity Leave as described
      in
      this Section unless the Employee furnishes proof satisfactory to the
      Administrative Committee (A) that his absence from work was due to a Maternity
      or Paternity Leave and (B) of the number of days he was absent due to the
      Maternity or Paternity Leave. The Administrative Committee shall prescribe
      uniform and nondiscriminatory procedures by which to make the above
      determinations.

     

    As
      used
      in this Section, the term “year” shall mean the same 12-month period as forms
      the basis for determining a Year of Vesting Service.

     

    1.14  Change
      in Control
      shall
      mean:

     

    (a)  any
      “person” as defined in Section 3(a)(9) of the 1934 Act, and as used in Section
      13(d) and 14(d) thereof, but excluding the Controlling Company and any
      subsidiary and any employee benefit plan sponsored or maintained by the
      Controlling Company or any subsidiary (including any trustee of such plan acting
      as trustee), directly or indirectly, becomes the “beneficial owner” (as
      determined pursuant to Rule 13d-3 under the 1934 Act), of securities of the
      Controlling Company representing 35% or more of the combined voting power of
      the
      Controlling Company’s then outstanding securities (unless the event causing the
      35% threshold to be crossed is an acquisition of securities directly from the
      Controlling Company); or

     

    (b)  the
      shareholders of the Controlling Company shall approve (i) any merger, share
      exchange, reorganization, or other business combination of the Controlling
      Company, (ii) any sale of 50% or more of the Controlling Company’s assets, or
      (iii) any combination of the foregoing transactions (the “Transactions”), other
      than a Transaction immediately following which the shareholders of the
      Controlling Company and any trustee or fiduciary of any Controlling Company
      employee benefit plan immediately prior to the Transaction own at least 80%
      of
      the voting power, directly or indirectly, of (A) the surviving corporation
      in
      any such merger, share exchange, reorganization, or other business combination;
      (B) the purchaser of the Controlling Company’s assets; (C) both the surviving
      corporation and the purchaser in the event of any combination of Transactions;
      or (D) the parent company owning 100% of such surviving corporation, purchaser
      or both the surviving corporation and the purchaser, as the case may be;
      or

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (c)  A
      majority of members of the Board is replaced during any 24-month period by
      directors whose appointment or election is not endorsed by a majority of members
      of the Board prior to the date of their appointment or election.

     

    1.15  Code
      shall
      mean the Internal Revenue Code of 1986, as amended, and any succeeding federal
      tax provisions.

     

    1.16  Company
      Contributions
      shall
      mean Before-Tax and Matching Contributions made by the Participating Companies
      pursuant to the terms of the Plan.

     

    1.17  Company
      Stock
      shall
      mean the common stock of the Controlling Company. As of the Effective Date,
      the
      term “Company Stock” shall mean the $5.00 par value common stock of AGL
      Resources Inc.

     

    1.18  Compensation
      shall
      mean, for any Plan Year, the total of the amounts described in subsections
      (a)
      and (b), minus the amount described in subsection (c):

     

    (a)  all
      such
      Participant’s wages, as defined in Code §3401(a) for purposes of income tax
      withholding at the source, that are reportable for federal income tax purposes
      on IRS Form W-2 (determined without regard to any rules that limit the
      remuneration included in wages based on the nature or location of the employment
      or the services performed (such as the exception for agricultural labor in
      Code
§3401(a)(2)); plus

     

    (b)  all
      before-tax, salary deferral or reduction contributions made to the Plan and
      other §401(k) and §125 plans (such as the Controlling Company’s Flex Plan) of
      the Participating Companies on behalf of a Participant for such Plan Year
      [including any contributions made under Code §402(a)(8) or §402(h)];
minus

     

    (c)  any
      amounts (i) attributable to items listed on the attached Schedule B, as modified
      from time to time by the Administrative Committee to reflect changes in payroll
      codes listed thereunder, or (ii) paid or made available to a Participant during
      the Plan Year while he is not an Active Participant.

     

    1.19  Contributions
      shall
      mean, individually or collectively, the Before-Tax and Matching Contributions
      permitted under the Plan.

     

    1.20  Controlling
      Company
      shall
      mean AGL Resources Inc., a Georgia corporation with its principal office in
      Atlanta, Georgia, and its successors.

     

    1.21  Covered
      Employee
      shall
      mean any Employee of a Participating Company who, as of his initial Entry Date
      or as of the December 1 immediately preceding a subsequent Plan Year, had an
      annual base salary in an amount equal to or in excess of the compensation limit
      designated by the IRS for determining “highly compensated employee” under Code
§414(q)(1)(C) plus $10,000 (for example, the 2007 IRS limit is $100,000 plus
      $10,000 = $110,000).

     

    1.22  Deferral
      Election
      shall
      mean a written election by an Active Participant directing the Participating
      Company of which he is an Employee to withhold a percentage of his Compensation
      from his paychecks and to contribute such withheld amount to the Plan as a
      Before-Tax Contribution, all as provided in §3.1.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    1.23  Disabled
      shall
      mean that a Participant is (i) wholly prevented from engaging in any
      substantially gainful activity by reason of a medically-determinable physical
      or
      mental impairment which can be expected to result in death or to be of
      long-continued and indefinite duration, and (ii) determined eligible to
      receive long term disability benefits from a Participating Company’s long term
      disability plan, or if no such plan exists, upon the discretionary determination
      by the Administrative Committee that the employee meets the definition of
“disabled” under the Controlling Company’s long-term disability
      plan.

     

    1.24  Effective
      Date
      shall
      mean January 1, 2007, the date that this amendment and restatement of the Plan
      shall be effective; provided, any effective date specified herein for any
      provision, if different from the “Effective Date”, shall control. The Plan was
      initially adopted effective as of July 1, 1995.

     

    1.25  Employee
      shall
      mean any individual who is employed by a Participating Company (including
      officers, but excluding directors who are not officers or otherwise employees)
      and shall include leased employees of a Participating Company within the meaning
      of Code §414(n). Notwithstanding the foregoing, if leased employees constitute
      20 percent or less of a Participating Company’s non highly compensated work
      force within the meaning of Code §414(n)(5)(C)(ii), the term “Employee” shall
      not include those leased employees covered by a plan described in Code
§414(n)(5)(B).

     

    1.26  Entry
      Date
      shall
      mean each business day during which the Plan remains in effect.

     

    1.27  Forfeiture
      shall
      mean, for any Plan Year, the nonvested dollar amount of an Account of a former
      Participant who separates from service from all Affiliates. Forfeitures shall
      be
      used to reduce Matching Contributions.

     

    1.28  Hour
      of Service
      shall
      mean the increments of time described in subsection (a) hereof, as modified
      by
      subsections (b), (c) and (d) hereof:

     

    (a)  (1)Each
      hour
      for which an Employee is paid, or entitled to payment, for the performance
      of
      duties for an Affiliate during the applicable computation period;

     

    (2)  Each
      hour
      for which an Employee is paid, or entitled to payment, by an Affiliate on
      account of a period of time during which no duties are performed (irrespective
      of whether the employment relationship has terminated) due to vacation, holiday,
      illness, incapacity (including disability), layoff, jury duty, military duty
      or
      Leave of Absence; provided:

     

    (A)  No
      more
      than 501 Hours of Service shall be credited under this subsection (2) to an
      Employee for any single continuous period during which he performs no duties
      as
      an employee of an Affiliate (whether or not such period occurs in a single
      computation period);

     

    (B)  An
      hour
      for which an Employee is directly or indirectly paid, or entitled to payment,
      on
      account of a period during which he performs no duties as an employee of an
      Affiliate shall not be credited as an Hour of Service if such payment is made
      or
      due under a plan maintained solely to comply with applicable workers’
compensation, unemployment compensation or disability insurance laws;
      and

     

    (C)  Hours
      of
      Service shall not be credited to an Employee for a payment which solely
      reimburses such Employee for medical or medically related expenses incurred
      by
      him.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    For
      purposes of this subsection (2), a payment shall be deemed to be made by or
      due
      from an Affiliate regardless of whether such payment is made by or due from
      an
      Affiliate directly, or indirectly through, among others, a trust fund or
      insurer, to which the Affiliate contributes or pays premiums and regardless
      of
      whether contributions made or due to the trust fund, insurer or other entity
      are
      for the benefit of particular employees or are on behalf of a group of employees
      in the aggregate; and

     

    (3)  Each
      hour
      for which back pay, irrespective of mitigation of damages, is either awarded
      or
      agreed to by an Affiliate; provided, the same Hours of Service shall not be
      credited both under subsection (1) or subsection (2), as the case may be, and
      under this subsection (3); and, provided further, crediting of Hours of Service
      for back pay awarded or agreed to with respect to periods described in
      subsection (2) shall be subject to the limitations set forth in that
      subsection.

     

    (b)  Each
      Employee for whom an Affiliate does not keep records of actual Hours of Service
      shall be credited, in accordance with this Section and applicable regulations
      promulgated by the Department of Labor, with 45 Hours of Service for each week
      for which such Employee would be required to be credited with at least 1 Hour
      of
      Service.

     

    (c)  The
      rate
      or manner used for crediting Hours of Service may be changed at the direction
      of
      the Administrative Committee from time to time so as to facilitate
      administration and to equitably reflect the purposes of the Plan; provided,
      no
      change shall be effective as to any Plan Year for which allocations have been
      made pursuant to Article IV at the time such change is made; and, provided
      further, Hours of Service shall be credited and determined in compliance with
      Department of Labor Regulation §2530.200b-2(b) and (c), 29 CFR Part 2530, as may
      be amended from time to time, or such other federal regulations as may from
      time
      to time be applicable.

     

    (d)  For
      purposes of this Section, a “computation period” shall mean the 12-month period
      that forms the basis for determining an Employee’s Years of Vesting
      Service.

     

    1.29  Investment
      Committee
      shall
      mean the committee which is appointed by and acts on behalf of the Controlling
      Company with respect to making and effecting investment decisions, all as
      provided in Article V. The Controlling Company may act in lieu of the Investment
      Committee as it deems appropriate or desirable.

     

    1.30  Investment
      Fund or Funds
      shall
      generally mean the investment fund or funds established by the Trustee; except
      as otherwise determined by the Trustee, the “Investment Fund or Funds” shall
      mean the investment fund or funds established under the Retirement Savings
      Plus
      Plan, and any other investment funds established from time to time by the
      Trustee pursuant to §5.2 hereof.

     

    1.31  Key
      Employee
      shall
      mean a key employee as defined in Code §416(i) without regard to paragraph (5)
      thereof, of any Affiliate, as determined under Code §409A and guidance issued
      thereunder. The identification date for determining Key Employees under the
      Plan
      shall be December 31.

     

    1.32  Leave
      of Absence
      shall
      mean an excused leave of absence granted to an Employee by an Affiliate in
      accordance with applicable federal or state law or the Affiliate’s personnel
      policy. Among other things, Leave of Absence shall be granted to an
      Employee:

     

    (a)  who
      leaves the service of an Affiliate, voluntarily or involuntarily, to enter
      the
      Armed Forces of the United States; provided, (i) the Employee is legally
      entitled to reemployment under the veteran’s reemployment rights provisions as
      codified at 38 USC §2021, et seq., its predecessors and successors; and (ii) the
      Employee applies for and reenters service with an Affiliate within the time,
      in
      the manner and under the conditions prescribed by law;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (b)  for
      any
      time such Employee is drawing workers’ compensation benefits or is sick,
      disabled or incapacitated, if he is thereby precluded from properly performing
      his assigned duties for a temporary period of time; and

     

    (c)  under
      such other circumstances as the Administrative Committee shall determine are
      fair, reasonable and equitable as applied uniformly among Employees under
      similar circumstances.

     

    1.33  Matching
      Account
      shall
      mean the separate subaccount(s) established and maintained on behalf of a
      Participant or his Beneficiary to reflect his interest in the Plan attributable
      to Matching Contributions.

     

    1.34  Matching
      Contributions
      shall
      mean the amounts paid by each Participating Company to the Plan as a match
      to
      Participants’ Before-Tax Contributions, all as pursuant to the terms of
§3.2.

     

    1.35  Maternity
      or Paternity Leave
      shall
      mean any period, during which an Employee is absent from work as an employee
      of
      an Affiliate (i) because of the pregnancy of such Employee;
      (ii) because of the birth of a child of such Employee; (iii) because
      of the placement of a child with such Employee in connection with the adoption
      of such child by such Employee; or (iv) for purposes of such Employee
      caring for a child immediately after the birth or placement of such
      child.

     

    1.36  Normal
      Retirement Age
      shall
      mean age 65.

     

    1.37  Participant
      shall
      mean any person who has an Account under the Plan.

     

    1.38  Participating
      Company
      shall
      mean the Controlling Company and all Affiliates which have adopted or hereafter
      may adopt the Plan for the benefit of their employees and which continue to
      participate in the Plan, all as provided in §9.3.

     

    1.39  Payment
      Election
      shall
      mean a written or electronic election by an Active Participant directing the
      Participating Company regarding the time and form of payment of such Active
      Participant’s Account under the Plan upon Separation from Service, all as
      described in Article VII.

     

    1.40  Plan
      shall
      mean the AGL Resources Inc. Nonqualified Savings Plan as contained herein and
      all amendments thereto. The Plan is intended to be an unfunded nonqualified
      deferred compensation plan for the benefit of a select group of management
      or
      highly compensated employees.

     

    1.41  Plan
      Year
      shall
      mean each 12-month period beginning on January 1 and ending on December
      31.

     

    1.42  Retirement
      Savings Plus Plan or RSP
      shall
      mean the AGL Resources Inc. Retirement Savings Plus Plan, as it may be amended
      from time to time.

     

    1.43  Separate
      from Service or Separation from Service
      shall
      mean that a Participant separates from service with all Affiliates, as
      determined under Code §409A and guidance thereunder.

     

    1.44  Special
      Bonus Deferral Election
      shall
      mean a separate election made by a Participant to defer some or all of his
      Bonus
      Compensation received during a Plan Year.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    1.45  Spouse
      or Surviving Spouse
      shall
      mean, with respect to a Participant, the person who is treated as married to
      such Participant under the laws of the state in which the Participant resides.
      The determination of a Participant’s Spouse or Surviving Spouse shall be made as
      of the earlier of the date as of which benefit payments from the Plan to such
      Participant are made or commence (as applicable) or the date of such
      Participant’s death.

     

    1.46  Trust
      or Trust Agreement
      shall
      mean a separate agreement between the Controlling Company and the Trustee
      governing the creation of the Trust Fund, and all amendments
      thereto.

     

    1.47  Trustee
      shall
      mean the party or parties so designated from time to time pursuant to the Trust
      Agreement.

     

    1.48  Trust
      Fund
      shall
      mean the total amount of cash and other property held by the Trustee (or any
      nominee thereof) at any time under the Trust Agreement.

     

    1.49  Valuation
      Date
      shall
      mean each business day on which the fair market value of the accounts under
      the
      Plan are determined.

     

    1.50  Year
      of Vesting Service
      shall
      mean a Plan Year during which an Employee completes no less than 1,000 Hours
      of
      Service; provided:

     

    (a)  Years
      of
      Vesting Service completed prior to a period in which the Participant incurred
      5
      or more consecutive Breaks in Service shall be disregarded under the Plan if
      the
      Participant had no vested interest in his Account at the time the first such
      Break in Service commenced and the number of such consecutive Breaks in Service
      equals or exceeds the number of his prior Years of Vesting Service;

     

    (b)  Years
      of
      Vesting Service completed after a period in which the Participant had at least
      5
      consecutive Breaks in Service shall be disregarded for the purpose of
      determining his vested interest in that portion of his Account which accrued
      before such Breaks in Service; and

     

    (c)  For
      purposes of this Section, employment with an Affiliate shall be considered
      employment with the Controlling Company, and in the case of a leased employee
      (within the meaning of Code §414(n)) of any Affiliate, such leased employee
      shall be considered as being a leased employee of the Controlling
      Company.

     

    ARTICLE
      II

     

    ELIGIBILITY

     

    2.1  Initial
      Eligibility Requirements.

     

    (a)  General
      Rule.
      Except
      as provided in subsection (b) hereof, each Covered Employee shall first become
      eligible to make contributions under the Plan as of the Entry Date coincident
      with or next following the date of (i) such Covered Employee’s attainment
      of age 21, and (ii) completion of thirty (30) days of employment as a
      Covered Employee, provided he is a Covered Employee on such date.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (b)  New
      Participating Companies.
      Each
      Covered Employee employed by a Participating Company on the date such
      Participating Company first becomes a Participating Company shall first become
      eligible to make contributions under the Plan as of the business day coincident
      with or next following the later of such Participating Company’s commencement of
      participation in the Plan, or such Covered Employee’s attainment of age 21 and
      completion of thirty (30) days of employment with such Participating
      Company.

     

    2.2  Subsequent
      Eligibility Requirements.

     

    Each
      Covered Employee shall be eligible to make contributions under the Plan for
      each
      Plan Year following the Plan Year in which the Covered Employee first became
      eligible to make contributions under the Plan if such Covered Employee satisfies
      the compensation requirements for Covered Employees as of the December 1
      immediately preceding the first day of such subsequent Plan Year.

     

    2.3  Treatment
      of Interruptions of Service.

     

    (a)  Leave
      of Absence.
      If a
      Covered Employee satisfies the eligibility requirements set forth in §2.1 but is
      on a Leave of Absence on the Entry Date on which he otherwise would have become
      an Active Participant, he shall become an Active Participant as of the date
      he
      subsequently resumes the performance of duties as a Covered Employee in
      accordance with the terms of his Leave of Absence.

     

    (b)  Reparticipation
      Upon Reemployment.
      If an
      Active Participant separates from service with a Participating Company (and
      all
      other Participating Companies), his active participation in the Plan shall
      cease
      immediately, and he again shall become an Active Participant as of the day
      he is
      reemployed as a Covered Employee, regardless of whether he has received a
      distribution of his Account balance under the Plan at the time of his
      reemployment. However, regardless of whether he again becomes an Active
      Participant, he shall continue to be a Participant until he no longer has an
      Account under the Plan.

     

    2.4  Change
      in Status.
      If an
      Active Participant changes his status of employment (but remains employed)
      so
      that he is no longer a Covered Employee, he shall continue to be a Participant
      until he no longer has an Account under the Plan. If an Active Participant
      does
      not meet the compensation requirements for Covered Employees as of the December
      1 immediately preceding the first day of any Plan Year, he shall continue to
      be
      a Participant until he no longer has an Account under the Plan and may again
      become an Active Participant in the Plan if, as of the December 1 immediately
      preceding the first day of a Plan Year, he meets the compensation requirements
      for Covered Employees.

     

    ARTICLE
      III

     

    CONTRIBUTIONS

     

    3.1  Before-Tax
      Contributions.

     

    (a)  Before-Tax
      Contributions.
      Each
      Participating Company shall contribute to the Plan, on behalf of each Active
      Participant employed by such Participating Company and for each payroll period
      for which such Active Participant has a Before-Tax Deferral Election in effect
      with such Participating Company, a Before-Tax Contribution in an amount equal
      to
      the amount by which such Active Participant’s Compensation has been reduced for
      such period pursuant to his Before-Tax Deferral Election. The amount of the
      Before-Tax Contribution shall be determined in percentage increments of such
      Active Participant’s Compensation for each payroll period.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (b)  Deferral
      Elections.
      Each
      Active Participant who desires that his Participating Company make a Before-Tax
      Contribution on his behalf shall complete and deliver to the Participating
      Company (or its designee) a Deferral Election. Such Deferral Election shall
      provide for the reduction of his Compensation for each Plan Year for which
      the
      Deferral Election is applicable, up to a maximum of 100 percent of his
      Compensation after all deductions required by law or otherwise elected by the
      Participant. In addition, the Deferral Election may contain a Special Bonus
      Deferral Election providing for the reduction of the Participant’s Bonus
      Compensation received during the Plan Year, up to a maximum of 100 percent
      of
      his Bonus Compensation after all deduction required by law or otherwise elected
      by the Participant. The Administrative Committee, in its sole discretion, shall
      prescribe the form of all Deferral Elections and may prescribe such
      nondiscriminatory terms and conditions governing the use of the Deferral
      Elections as it deems appropriate. Subject to any modifications, additions
      or
      exceptions which the Administrative Committee, in its sole discretion, deems
      necessary, appropriate or helpful, the following terms shall apply to Deferral
      Elections:

     

    (1)  Effective
      Date.

     

    (A)  Deferrals
      for New Participants.
      In the
      case of the first year in which a Participant becomes eligible to participate
      in
      the Plan and any Aggregated Arrangements, such Active Participant’s initial
      Deferral Election with a Participating Company must be made within 30 days
      after
      the date the Participant first becomes eligible to participate in any Aggregated
      Arrangement, and shall be effective for the first payroll period which ends
      after the Deferral Election is made and after the effective date specified
      for
      such Deferral Election. Such Active Participant’s Deferral Election with respect
      to Compensation payable with respect to services performed during the initial
      Plan Year of participation shall become irrevocable as of the earlier of the
      date the first Before-Tax Contribution is made on behalf of the Participant
      or
      the end of the 30-day period after the date the Participant first becomes
      eligible to participate in an Aggregated Arrangement. Except as provided in
      subsection (B) below, such Participant’s initial Deferral Election shall not
      apply to Compensation payable with respect to services performed prior to the
      effective date of the Deferral Election.

     

    (B)  Bonus
      Deferrals.

     

    (i)  New
      Participants.
      Except
      as provided in subsection (B)(ii) below, in the case of the first year in which
      a Participant becomes eligible to participate in the Plan and any Aggregated
      Arrangements, such Participant’s initial Special Bonus Deferral Election, with
      respect to any Bonus for which the performance period began prior to the date
      of
      the Special Bonus Deferral Election, must be made within 30 days after the
      date
      the Participant first becomes eligible to participate in any Aggregated
      Arrangement, and shall apply to the portion of the Participant’s Bonus equal to
      the total amount of the Participant’s Bonus, multiplied by the ratio of the
      number of days remaining in the performance period after the date the Special
      Bonus Deferral Election is made, over the total number of days in the
      performance period for the Bonus. Such Active Participant’s Special Bonus
      Deferral Election with respect to Bonus Compensation payable with respect to
      services performed during the initial Plan Year of participation shall become
      irrevocable as of the end of the 30-day period after the date the Participant
      first becomes eligible to participate in an Aggregated Arrangement.

     

    (ii)  New
      and Continuing Participants.
      If a
      Participant was a Covered Employee continuously from the date on which the
      performance criteria of a Bonus was established, through the date such
      Participant makes an initial or modified Special Bonus Deferral Election under
      the Plan, such initial or modified Special Bonus Deferral Election may be made
      with respect to the entire amount of such Bonus on or before the date that
      is
      six (6) months before the end of the performance period of the Bonus, but only
      if the Bonus has not become both substantially certain to be paid and readily
      ascertainable at the time of such initial or modified Special Bonus Deferral
      Election. This provision shall apply to the first year in which a Participant
      becomes eligible to participate in the Plan and any Aggregated Arrangements,
      notwithstanding the provisions of subsection (B)(i) above, as well as to
      continuing Active Participants.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (iii)  Additional
      Requirements.
      To be
      eligible for the election timing rules of this subsection (B), the amount of,
      or
      entitlement to, the Bonus must satisfy the requirements to be considered
“performance-based compensation” as defined in Code §409A and guidance issued
      thereunder. To the extent that a Bonus does not meet the requirements for
“performance-based compensation,” the election timing rules under subsection (A)
      above apply.

     

    (C)  All
      Other Deferral Elections.
      Except
      as provided in subsections (A) and (B) above, a Participant’s initial Deferral
      Election, or new Deferral Election following termination of a previously
      effective Deferral Election, shall be made on or before December 31 of the
      preceding calendar year with respect to Compensation payable with respect to
      services performed during the Plan Year. If an Active Participant fails to
      submit an initial Deferral Election in a timely manner, he shall be deemed
      to
      have elected a deferral of zero percent.

     

    (2)  Term.
      Each
      Active Participant’s Deferral Election with a Participating Company for a Plan
      Year shall remain in effect in accordance with its original terms until the
      date
      the Active Participant ceases to be an Employee of all Participating Companies,
      subject to subsection (3) below. If a Participant is transferred from the
      employment of a Participating Company to the employment of another Participating
      Company, his Deferral Election with the first Participating Company will remain
      in effect and will apply to his Compensation from the second Participating
      Company.

     

    (3)  Modification
      and Revocation.
      An
      Active Participant’s Deferral Election with a Participating Company shall
      automatically terminate upon either: (i) his ceasing to be an Employee of all
      Participating Companies, or (ii) his receipt of a hardship withdrawal as
      provided in §7.5 of the Plan. Otherwise, except as provided in subsections
      (b)(1)(A) and (B) above, an Active Participant’s Deferral Election with respect
      to a Plan Year becomes irrevocable as of the preceding December 31 with respect
      to Compensation payable with respect to services performed during the Plan
      Year,
      and may not be modified or revoked by the Active Participant during that Plan
      Year. An Active Participant may make a new Deferral Election prior to the
      beginning of a Plan Year for Before Tax Contributions attributable to services
      performed during that Plan Year. If an Active Participant does not make a new
      Deferral Election for any subsequent Plan Year, the most recent Deferral
      Election in place will remain in effect for that subsequent Plan
      Year.

     

    3.2  Matching
      Contributions.

     

    (a)  For
      each
      Active Participant (other than those described in subsection (b) hereof) on
      whose behalf a Participating Company has made any Before-Tax Contributions
      to
      the Plan for the Plan Year, such Participating Company shall make a Matching
      Contribution equal to 65 percent of the aggregate amount of such Before-Tax
      Contributions up to the first 8 percent of the Participant’s Compensation (or
      the difference between the amount of Before-Tax Contributions made by the
      Participant and matched by the Controlling Company (or another participating
      employer) under the Retirement Savings Plus Plan so that only a total of 8
      percent of the Participant’s Compensation is matched under both the RSP and the
      Plan).

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (b)  For
      each
      Active Participant who was then an Active Participant and had reached age 50
      on
      or before July 1, 2000, on whose behalf a Participating Company has made any
      Before-Tax Contributions to the Plan for the Plan Year, such Participating
      Company shall make a Matching Contribution equal to 65 percent of the aggregate
      amount of such Before-Tax Contributions up to the first 6 percent of the
      Participant’s Compensation (or the difference between the amount of Before-Tax
      Contributions made by the Participant and matched by the Controlling Company
      (or
      another participating employer) under the Retirement Savings Plus Plan so that
      only a total of 6 percent of the Participant’s Compensation is matched under
      both the RSP and the Plan).

     

    (c)  Matching
      Contributions shall be made to the Plan once each year within the period of
      two
      months following the last day of each Plan Year. Matching Contributions for
      a
      Plan Year shall be reduced by the amount of any Forfeitures available for
      reallocation during that Plan Year.

     

    3.3  Form
      of Contributions.

     

    All
      Contributions shall be paid to the Trustee in the form of cash or Company Stock
      or a combination thereof, as the Controlling Company or Administrative Committee
      may determine from time to time.

     

    ARTICLE
      IV

     

    PARTICIPANTS’
      ACCOUNTS; CREDITING AND ALLOCATIONS

     

    4.1  Establishment
      of Participants’ Accounts.

     

    To
      the
      extent appropriate, the Administrative Committee shall establish and maintain,
      on behalf of each Participant and Beneficiary, an Account which shall be divided
      into segregated subaccounts. The subaccounts shall include Before-Tax and
      Matching Accounts, and such other subaccounts as the Administrative Committee
      shall deem appropriate or helpful. Each Account shall be credited with
      Contributions allocated to such Account and generally shall be credited with
      income on investments derived from the assets of such Accounts. Each Account
      of
      a Participant or Beneficiary shall be maintained until the value thereof has
      been distributed to or on behalf of such Participant or
      Beneficiary.

     

    4.2  Allocation
      and Crediting of Before-Tax and Matching Contributions.

     

    As
      of
      each Valuation Date coinciding with or immediately following the date on which
      Before-Tax and Matching Contributions are received on behalf of an Active
      Participant, such Contributions shall be allocated and credited directly to
      the
      appropriate Before-Tax and Matching Accounts, respectively, of such Active
      Participant.

     

    4.3  Allocation
      and Crediting of Investment Experience.

     

    As
      of
      each Valuation Date, the Administrative Committee or its designated recordkeeper
      shall determine the fair market value of the Trust Fund which shall be the
      sum
      of the fair market values of the Investment Funds. The Administrative Committee
      shall determine the amount of the Accounts as follows:

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (a)  Determination
      of Earnings or Losses.
      As of
      each Valuation Date, the investment earnings (or losses) of each Investment
      Fund
      shall be the amount by which the sum determined in (1) exceeds (or is less
      than)
      the sum determined in (2), where (1) and (2) are as follows:

     

    (1)  The
      sum
      of (A) the fair market value of such Investment Fund as of such Valuation Date,
      plus (B) the amount of any distributions, withdrawals and transfers to other
      Investment Funds made since the immediately preceding Valuation Date from
      amounts invested in the Investment Fund; and

     

    (2)  The
      sum
      of (A) the fair market value of the Investment Fund as of the immediately
      preceding Valuation Date, plus (B) Contributions deposited in and amounts
      transferred to such Investment Fund since the immediately preceding Valuation
      Date.

     

    (b)  Formula
      For Allocation.
      As of
      each Valuation Date and prior to the allocations described in §4.2, and 4.3,
      each Participant’s Account shall be allocated and shall be credited with a
      portion of such earnings or debited with a portion of such losses of each
      Investment Fund, as determined in accordance with subsection (a) hereof, in
      the
      proportion that (i)(A) the amount credited to such Account that was invested
      in
      such Investment Fund as of the immediately preceding Valuation Date, minus
      (B)
      any distributions, withdrawals or transfers to other Investment Funds that
      were
      made from such Account since such preceding Valuation Date and on or before
      such
      current Valuation Date, plus (C) any Contributions deposited in and amounts
      transferred to such Investment Fund from such Account since the preceding
      Valuation Date; bears to (ii)(A) the total amount invested in such Investment
      Fund by all Participants as of the immediately preceding Valuation Date, minus
      (B) any distributions, withdrawals or transfers to other Investment Funds which
      were made from such Accounts since such preceding Valuation Date and on or
      before such current Valuation Date, plus (C) any Contributions deposited in
      and
      amounts transferred to such Investment Fund since the preceding Valuation
      Date.

     

    4.4  Notice
      to Participants of Account Balances.

     

    At
      least
      once for each Plan Year, the Administrative Committee shall cause a written
      statement of a Participant’s Account balance to be distributed to the
      Participant.

     

    4.5  Good
      Faith Valuation Binding.

     

    In
      determining the value of the Accounts, the Administrative Committee and/or
      its
      designated recordkeeper shall exercise its best judgment, and all such
      determinations of value (in the absence of bad faith) shall be binding upon
      all
      Participants and Beneficiaries.

     

    4.6  Errors
      and Omissions in Accounts.

     

    If
      an
      error or omission is discovered in the Account of a Participant or Beneficiary,
      the Administrative Committee shall cause appropriate, equitable adjustments
      to
      be made as of the Valuation Date coinciding with or immediately following the
      discovery of such error or omission.

     

    ARTICLE
      V

     

    INVESTMENT
      OF ACCOUNTS

     

    5.1  Establishment
      of Trust Fund.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (a)  Rabbi
      Trust.
      The
      Controlling Company has established a Trust Fund to hold assets to pay benefits
      under the Plan. All Contributions are to be paid over to the Trustee to be
      held
      in the Trust Fund and invested in accordance with the terms of the Plan and
      the
      Trust Agreement. The Trust Fund shall exist under an agreement constituting
      a
“rabbi trust” agreement, under which all assets of the Trust Fund shall be
      considered to be subject to the general creditors of the Controlling Company,
      and all Plan participants shall be unsecured creditors under such Trust
      Agreement. In the event that no trust fund exists, benefits shall be payable
      from the general assets of the Controlling Company.

     

    (b)  Trust
      Required Upon Change in Control.
      Upon a
      Change in Control of the Controlling Company, the Controlling Company must
      within ten (10) business days after such Change in Control, establish and fully
      fund a rabbi trust (if and to the extent such a fully funded rabbi trust does
      not already exist) to pay all benefits accrued by Participants through that
      date
      under the Plan. Further, upon a Change of Control, an entity other than the
      Controlling Company, a Participating Company, any Affiliate or any employee,
      officer or director of such companies shall be named by the Board as Trustee
      of
      the rabbi trust. This subsection 5.1(c) of the Plan shall be irrevocable and
      may
      not be amended by the Controlling Company or any other company after the
      effective date of the Plan (unless required by law).

     

    5.2  Investment
      Funds.
      To the
      extent a Trust Fund is established, the following provisions shall
      apply:

     

    (a)  Composition
      of Investment Committee.
      The
      Investment Committee shall consist of not less than one member who shall be
      appointed by and serve at the pleasure of the Board. The Board shall have the
      right to remove any member of the Investment Committee at any time. A member
      may
      resign at any time by written resignation to the Board. If a vacancy in the
      Investment Committee should occur, a successor may be appointed by the
      Board.

     

    (b)  Investment
      Committee Procedures.
      The
      Investment Committee may elect a Chairman and a Secretary from among its
      members. The Investment Committee shall act by majority vote. Its members shall
      serve as such without compensation. All acts and determinations of the
      Investment Committee shall be duly recorded by its Secretary or under his
      supervision, and all such records, together with such other documents as may
      be
      necessary for the administration of the Plan, shall be preserved in the custody
      of such Secretary.

     

    (c)  Investment
      Committee Powers and Duties.
      In
      addition to those powers set forth elsewhere in the Plan, the Investment
      Committee shall carry out the Controlling Company’s responsibility and
      authority:

     

    (1)  To
      appoint one or more persons to serve as investment manager with respect to
      all
      or part of the Trust Fund assets;

     

    (2)  To
      allocate the responsibility and authority being carried out by the Investment
      Committee among the members of the Investment Committee; 

     

    (3)  To
      employ
      one or more persons to render advice with respect to any responsibility or
      authority being carried out by the Investment Committee; and

     

    (4)  To
      direct
      the Trustee regarding the investments and investment funds available under
      the
      Plan.

     

    (d)  Investment
      of Plan Contributions.
      All
      Contributions to the Plan shall be invested in the following
      manner:

     

    
      
        
        

      

      
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    (1)  Named
      Investment Funds.
      In
      accordance with instructions from the Investment Committee and the terms of
      the
      Plan, the Trustee shall establish, for the investment of assets of the trust
      fund, one or more of the investment fund or funds established under the
      Retirement Savings Plus Plan.

     

    (2)  Other
      Investment Funds.
      At the
      direction of the Investment Committee, the Trustee shall establish other
      Investment Funds, in addition to or in lieu of the Investment Funds described
      herein, which may include, for example, other income funds or equity funds.
      Such
      other Investment Funds shall be established without necessity of amendment
      to
      the Plan or the Trust and shall have the investment objectives prescribed by
      the
      Investment Committee and to which the Trustee consents. Such other Investment
      Funds also may be established and maintained for any limited purpose(s) the
      Investment Committee may direct.

     

    (3)  Reinvestment
      of Cash Earnings.
      Any
      investment earnings received in the form of cash with respect to any Investment
      Fund (in excess of the amounts necessary to make cash distributions for
      fractional shares of Company Stock or to pay Plan or Trust expenses) shall
      be
      reinvested in such Investment Fund.

     

    5.3  Investment
      Procedures.

     

    Each
      Participant or Beneficiary generally may direct the manner in which his Account
      shall be invested in and among the Investment Funds; provided, however, that
      the
      Investment Committee shall have sole discretion as to investment of a
      Participant’s or Beneficiary’s Account and may refuse to follow a Participant’s
      or Beneficiary’s investment directions. A Participant’s or Beneficiary’s
      investment directions shall be made in accordance with the following
      terms:

     

    (a)  Investment
      of Future Contributions.
      Except
      as otherwise provided in this Section [relating to special Investment Funds
      described in §5.2(d)(2)], each Participant may elect, on a form provided by or
      any other means specified by the Administrative Committee, the percentage of
      his
      future Before-Tax and Matching Contributions that will be invested in each
      Investment Fund. An initial election of a Participant shall be made as of the
      date the Participant commences or recommences participation in the Plan and
      shall apply to all Before-Tax and Matching Contributions attributable to payroll
      periods ending after such date. Such Participants may make subsequent elections
      on a daily basis as provided by the Administrative Committee. Any election
      made
      pursuant to this subsection with respect to future Before-Tax and Matching
      Contributions shall remain effective until changed by such Participant. In
      the
      event a Participant fails to make an investment election or a Participant’s
      election form is incomplete or insufficient in some manner, the Participant’s
      future Before Tax Contributions will be invested in the default investment
      provided for the RSP Plan.

     

    (b)  Investment
      of Existing Account Balances.
      Except
      as otherwise provided in this Section, each Participant or Beneficiary may
      elect, on a form provided by the Administrative Committee, the percentage of
      his
      existing Accounts that will be invested in each Investment Fund. Such
      Participant or Beneficiary may make such elections on a daily basis as provided
      by the Administrative Committee. Each such election shall apply to such
      Participant’s or Beneficiary’s Account balance as of the date of such election,
      and shall remain in effect until changed by such Participant or Beneficiary.
      In
      the event a Participant fails to make an election for his existing Accounts
      pursuant to the terms of this subsection (2) which is separate from his election
      made for his future Before-Tax and Matching Contributions pursuant to the terms
      of subsection (1) hereof, or if a Participant’s investment election form is
      incomplete or insufficient in some manner, the Participant’s existing Accounts
      will continue to be invested in the same manner provided under the terms of
      the
      most recent election affecting that portion of his Accounts. The Administrative
      Committee may determine at its discretion to charge a reasonable surcharge
      for
      changes to investment of existing Account balances; payment of any such
      surcharges may be made outside the Plan though payroll deduction or other
      methods as may be determined by the Administrative Committee.

     

    
      
        
        

      

      
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    (c)  Conditions
      Applicable to Elections.
      Allocations of investments in the various Investment Funds, as described in
      subsections (a) and (b) hereof, shall be made in even multiples of 1 percent
      as
      directed by the Participant or Beneficiary. The Administrative Committee shall
      have complete discretion to adopt and revise procedures to be followed in making
      such investment elections. Such procedures may include, but are not limited
      to,
      the format of the election forms, the deadline for filing elections and the
      effective date of such elections; provided, elections must be permitted at
      least
      once every 3 months. Any procedures adopted by the Administrative Committee
      that
      are inconsistent with the deadlines specified in this Section shall supersede
      such provisions of this Section without the necessity of a Plan
      amendment.

     

    (d)  Compliance
      with Securities Exchange Commission Rule 16b-3.
      Notwithstanding any other provisions of the Plan, the Administrative Committee
      shall take any and all actions as may be necessary with regard to investment
      directions made by Participants who are deemed to be “insiders” of the
      Controlling Company under the terms of the 1934 Act, in order to meet the
      requirements of Rule 16b-3 and regulations promulgated thereunder.

     

    5.4  Acquisition
      of Company Stock.

     

    (a)  In
      General.
      To the
      extent that Contributions and investment earnings on Company Stock are paid
      in
      cash, the Trustee shall effect purchases of Company Stock in compliance with
      all
      applicable securities laws, and in its sole discretion, may purchase Company
      Stock in the open market and/or in privately negotiated transactions with
      holders of Company Stock and/or the Controlling Company. All purchases of
      Company Stock by the Trust will be made at a price or prices which, in the
      judgment of the Trustee, do not exceed the fair market value of such Company
      Stock as of the date of the purchase.

     

    (b)  Stock
      Rights, Warrants or Options.
      In the
      event any rights, warrants or options are issued on Company Stock, the Trustee
      may exercise them for the acquisition of additional Company Stock, to the extent
      that cash is then available and allocable to the Company Stock Fund. Any Company
      Stock acquired in this fashion will be treated as Company Stock bought by the
      Trustee for the net price paid. Any rights, warrants or options on Company
      Stock
      which cannot be exercised for lack of available cash may be sold by the Trustee
      (provided the sale thereof is reasonably practicable), and the proceeds of
      such
      a sale shall be treated as a current cash dividend received on Company
      Stock.

     

    5.5  Value
      of Assets.

     

    For
      purposes under the Plan for which the value of assets must be determined, the
      value of such assets shall be the fair market value. For purposes of purchasing
      or selling Company Stock through an exchange on any day, the fair market value
      per share of such stock on such day shall be the price of the stock on the
      New
      York Stock Exchange at the time of the purchase or sale. For all other purposes
      under the Plan, the fair market value per share of the Company Stock on any
      particular day shall be the closing price of such Company Stock as reported
      on
      the New York Stock Exchange Composite Transaction listing on the day preceding
      the particular day in question. If, for any reason, the fair market value per
      share of Company Stock cannot be ascertained or is unavailable for a particular
      day, the fair market value of such stock shall be determined as of the nearest
      preceding day on which such fair market value can be ascertained pursuant to
      the
      terms hereof.

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    VESTING
      IN ACCOUNTS

     

    6.1  General
      Vesting Rule.

     

    All
      Participants shall at all times be fully vested in their Before-Tax Account.
      Except as provided in §6.2, the Matching Account of a Participant shall vest in
      accordance with the following vesting schedule, based on the total of the
      Participant’s Years of Vesting Service:

     

    
      	
              Years
                of Vesting Service

              Completed
                by Participant

            	
              Vested
                Percentage of

              Participant’s
                Matching Account

            
	 	 
	
              Less
                than 1 Years

            	
              None

            
	
              1
                Year, but less than 2

            	
              50%

            
	
              2
                Years, but less than 3

            	
              75%

            
	
              3
                Years or more

            	
              100%

            

    

     

    6.2  Vesting
      Upon Other Occurrences.

     

    Notwithstanding
      §6.1, a Participant’s Matching Account shall become 100 percent vested and
      nonforfeitable upon the occurrence of any of the following events:

     

    (a)  The
      Participant’s attainment of Normal Retirement Age while still employed as an
      employee of any Affiliate;

     

    (b)  The
      Participant’s death while still employed as an employee of any Affiliate;
      or

     

    (c)  The
      Participant’s becoming Disabled while still employed as an employee of any
      Affiliate.

     

    6.3  Timing
      of Forfeitures.

     

    If
      a
      Participant who is not yet 100 percent vested in his Matching Account separates
      from service with all Affiliates, the nonvested amount in his Matching Account
      shall be immediately forfeited and shall become available as a Forfeiture as
      of
      the Valuation Date coincident with or immediately following the date on which
      such termination occurs; provided, if a Participant has no vested interest
      in
      his Account at the time he separates from service, he shall be deemed to have
      received a cash-out distribution at the time he separates from service, and
      the
      forfeiture provisions of this Section shall apply. If such a Participant resumes
      employment with an Affiliate, such forfeited amount shall not be
      restored.

     

    6.4  Vesting
      of Matching Contribution Accounts for NUI Participants.

     

    Past
      service credit for vesting purposes under the Plan shall be granted to Employees
      of NUI Corporation and its directly or indirectly wholly-owned subsidiaries
      who
      were employed on November 30, 2004, for service with NUI Corporation and any
      other individual, partnership, limited liability partnership, joint venture,
      corporation, limited liability company, trust, unincorporated organization,
      or
      group consolidated with NUI Corporation for financial reporting
      purposes.

     

     

    
      
        
        

      

      
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    ARTICLE
      VII

     

    PAYMENT
      OF BENEFITS

     

    7.1  Benefit
      Payments.

     

    (a)  Generally.
      Except
      as provided in §7.2(d) and §9.2, a Participant shall not receive distribution of
      his or her benefits under the Plan earlier than the Participant’s Separation
      from Service, the date of the Participant’s death, or the occurrence of an
“unforeseeable emergency” as defined in §7.5 below and Code §409A.

     

    (b)  Death
      Benefits.
      If a
      Participant dies before full payment of his benefits from the Plan is made,
      the
      Beneficiary or Beneficiaries designated by such Participant in his latest
      beneficiary designation form filed with the Administrative Committee in
      accordance with the terms of §7.4 shall be entitled to receive a distribution of
      the entire vested amount credited to such Participant’s Account, determined as
      of the Valuation Date coincident with or immediately preceding the date payment
      of such distribution is to be made. Benefits payable to a Beneficiary or
      Beneficiaries under this Section shall be distributed in a single lump sum
      payment sixty days after the end of the Plan Year in which the Participant’s
      death occurs. Notwithstanding the foregoing, if the amount of payment required
      to be made on such date cannot be ascertained by such date, payment shall be
      made on the earliest date on which such payment can be ascertained under the
      Plan. The Administrative Committee may direct the Trustee to distribute a
      Participant’s Account to a Beneficiary without the written consent of such
      Beneficiary.

     

    7.2  Election
      of Timing and Form of Benefit Payment.

     

    (a)  Generally.
      Each
      Active Participant who makes a Deferral Election under the Plan shall complete
      and deliver to the Administrative Committee a Payment Election under the Plan.
      Such Payment Election shall specify a form of payment for the Participant’s
      Account under the Plan following Separation from Service. The Administrative
      Committee, in its sole discretion, shall prescribe the format of all Payment
      Elections and may prescribe such nondiscriminatory terms and conditions
      governing the Payment Elections, subject to the terms and conditions of the
      Plan, as it deems appropriate. The following terms shall apply to Payment
      Elections:

     

    (1)  Payment
      Elections for New Participants.
      In the
      case of the first year in which a Participant becomes eligible to participate
      in
      the Plan and any Aggregated Arrangements, such Active Participant’s initial
      Payment Election with a Participating Company must be made within 30 days after
      the date the Participant first becomes eligible to participate in any Aggregated
      Arrangement. As of the end of the 30th
      day
      after the date such Participant first becomes eligible to participate in an
      Aggregated Arrangement, the Participant’s Payment Election shall become
      irrevocable, except as provided in subsection (b) below.

     

    (2)  Other
      Initial Payment Election.
      Except
      as provided in subsection (1) above or as may be permitted in transitional
      guidance issued under Code §409A, a Participant’s initial Payment Election shall
      be made on or before December 31 of the calendar year prior to the first Plan
      Year in which the Participant’s initial Deferral Election becomes effective. At
      the end of the calendar year prior to the first Plan Year in which a
      Participant’s initial Deferral Election becomes effective, the Participant’s
      Payment Election shall become irrevocable, except as provided in subsection
      (b)
      below or as may be permitted in transitional guidance issued under Code
§409A.

     

    
      
        
        

      

      
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    (3)  Failure
      to Make Payment Election.
      If an
      Active Participant fails to submit an initial Payment Election in a timely
      manner, he or she shall be deemed to have elected a single lump sum payment
      as
      provided in §7.2(a).

     

    (b)  Modification.
      A
      Participant may make one subsequent Payment Election to revoke the form of
      payment initially elected (or deemed elected) and select a new form of payment,
      provided that:

     

    (1)  The
      modified Payment Election shall not take effect until at least twelve months
      after the date on which the modified Payment Election is made; and

     

    (2)  Each
      separate payment that is modified under the modified Payment Election shall
      be
      deferred for a period of five years from the date such payment would have been
      made (or, in the case of installment payments, the date of commencement) under
      the previous Payment Election.

     

    For
      purposes of this subsection and the Plan, an election to receive installment
      payments shall be treated as entitlement to a single payment, and an election
      to
      receive a lump sum and installments shall be treated as two separate payments
      (the lump sum being a single payment and all installments together being a
      single payment). In the case of a payment that does not have an objectively
      determinable specified date within a calendar year for payment, such payment
      date is deemed to be January 1 of such calendar year for purposes of applying
      the rules of this subsection. A Participant may make no more than one modified
      Payment Election under the Plan.

     

    (c)  Overriding
      Provisions.
      Notwithstanding a Participant’s Payment Election, the following shall
      apply:

     

    (1)  Cash-Out
      of Small Accounts.
      If a
      Participant’s vested Account balance is $10,000 or less at the time of the
      Participant’s Separation from Service, such Participant shall receive payment in
      the form of a single lump sum on the first day of the third month (except as
      provided in subsection (d)(2) below) following the Participant’s Separation from
      Service.

     

    (2)  Delay
      in Payment for Key Employees.
      In the
      case of any Participant who is a Key Employee, distribution of such
      Participant’s benefits upon Separation from Service may not be made before the
      date that is six (6) months after the date of Separation from Service (or,
      if
      earlier, the date of death of the Participant). Payments to which the
      Participant would otherwise be entitled during the first six months following
      the date of Separation from Service shall be accumulated and paid on the first
      day of the seventh month following the date of Separation from
      Service.

     

    (3)  Payment
      Upon Domestic Relations Order.
      Payment
      of vested benefits under the Plan may be made to an individual other than the
      Participant as may be necessary to fulfill a domestic relations order as defined
      in Code §414(p)(1)(B).

     

    (4)  Payment
      Upon Income Inclusion Under Code §409A.
      Payment
      of vested benefits under the Plan may be made to a Participant at any time
      the
      Plan fails to meet the requirements of Code §409A and related regulations. Such
      payment shall not exceed the amount required to be included in income as a
      result of the failure to comply with the requirements of Code §409A and related
      regulations.

     

    (5)  Payment
      Upon a Change in Control.
      Upon a
      Participant’s Separation from Service within the two-year period following a
      Change in Control, such Participant shall receive payment of his or her vested
      Account balance in the form of a single lump sum payment in the calendar year
      following the year in which the Participant Separates from Service.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    (6)  Transitional
      Rule.
      Participants may make or change elections during the transitional period
      provided by the Internal Revenue Service in guidance issued under Code §409A. A
      Participant who would receive payment during 2007 under the provisions of the
      Plan as in effect before the Effective Date will receive payment as provided
      under such provisions.

     

    7.3  Forms
      of Payment Upon Separation from Service.

     

    Except
      as
      provided in §7.2(c), benefits payable to a Participant upon Separation from
      Service shall be distributed in one of the following forms as elected by the
      Participant in accordance with his or her Payment Election:

     

    (a)  A
      single
      lump sum cash payment in the calendar year following the year in which the
      Participant Separates from Service;

     

    (b)  A
      lump
      sum cash payment of an objectively determinable dollar amount or percentage
      of
      the Participant’s Account (as elected by the Participant), in the calendar year
      following the year in which the Participant Separates from Service, with the
      remainder of the Participant’s Account distributed in substantially equal annual
      cash installments over up to ten (10) (as elected by the Participant)
      consecutive subsequent calendar years;

     

    (c)  Between
      one (1) and ten (10) (as elected by the Participant) consecutive annual
      installments, commencing in the calendar year following the year in which the
      Participant Separates from Service. Each annual installment payment shall be
      equal to the vested balance of the Participant’s Account on the payment date,
      divided by the number of installment payments remaining as of the payment
      date.

     

    7.4  Beneficiary
      Designation.

     

    (a)  General.
      Participants shall designate and from time to time may redesignate their
      Beneficiary or Beneficiaries in such form and manner as the Administrative
      Committee may determine. If any Participant dies prior to receiving his benefits
      under the Plan, his Account shall be changed to the name of such deceased
      Participant’s named or deemed Beneficiary or Beneficiaries.

     

    (b)  No
      Designation or Designee Dead or Missing.
      In the
      event that:

     

    (1)  a
      Participant dies without designating a Beneficiary;

     

    (2)  the
      Beneficiary designated by a Participant is not surviving when a payment is
      to be
      made to such person under the Plan, and no contingent Beneficiary was designated
      by the Participant; or

     

    (3)  the
      Beneficiary designated by a Participant cannot be located by the Administrative
      Committee within 1 year from the date benefits are to commence to such
      person;

     

    then,
      in
      any of such events, the Beneficiary of such Participant with respect to any
      benefits that remain payable under the Plan shall be the Participant’s Surviving
      Spouse, if any, and if not, then the estate of the Participant.

     

    
      
        
        

      

      
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    7.5  Hardship
      Withdrawals.

     

    (a)  Parameters
      of Hardship Withdrawals.
      A
      Participant may make a withdrawal on account of hardship from his vested
      Account. For purposes of this subsection, a withdrawal will be on account of
      “hardship” only if it is necessary to respond to an “unforeseeable emergency”
resulting in a severe financial need of the Participant. A withdrawal based
      on
      financial hardship cannot exceed the amount reasonably necessary to satisfy
      the
      emergency need (which may include amounts necessary to pay any Federal, state,
      or local income taxes or penalties reasonably anticipated to result from the
      distribution). Determinations of amounts reasonably necessary to satisfy the
      emergency need shall take into account any additional compensation that would
      become available to the Participant upon cancellation of the Participant’s
      Deferral Election as provided in §3.1(b)(3)(ii). The Administrative Committee
      shall make its determination, as to whether a Participant has suffered a severe
      financial need as a result of an unforeseeable emergency and whether it is
      necessary to use a hardship withdrawal from the Plan to satisfy that need,
      on
      the basis of all relevant facts and circumstances.

     

    (b)  Unforeseeable
      Emergency Definition.
      For
      purposes of this §7.5, an unforeseeable emergency is a severe financial hardship
      of the Participant resulting from an illness or accident of the Participant,
      the
      Participant’s Spouse, or the Participant’s dependent (as defined in Code
§152(a)); loss of the Participant’s property due to casualty (including the need
      to rebuild a home following damage to a home not otherwise covered by insurance,
      for example, not as a result of a natural disaster); or other similar
      extraordinary and unforeseeable circumstances arising as a result of events
      beyond the control of the Participant. For example, the imminent foreclosure
      of
      or eviction from the Participant’s primary residence may constitute an
      unforeseeable emergency. In addition, the need to pay for medical expenses,
      including non-refundable deductibles, as well as for the costs of prescription
      drug medication, may constitute an unforeseeable emergency. Finally, the need
      to
      pay for the funeral expenses of a Spouse or a dependent (as defined in Code
      §152(a)) may also constitute an unforeseeable emergency. Except as otherwise
      provided in this paragraph, the purchase of a home and the payment of college
      tuition are not unforeseeable emergencies. Whether a Participant is faced with
      an unforeseeable emergency permitting a distribution under this Section is
      to be
      determined based on the relevant facts and circumstances of each case, but,
      in
      any case, a distribution on account of unforeseeable emergency may not be made
      to the extent that such emergency is or may be relieved through reimbursement
      or
      compensation from insurance or otherwise, by liquidation of the Participant’s
      assets, to the extent the liquidation of such assets would not cause severe
      financial hardship, or by cessation of deferrals under the Plan.

     

    (c)  Application
      for Hardship Withdrawal.
      All
      applications for hardship withdrawals shall be in writing on a form provided
      by
      the Administrative Committee and shall contain such information as the
      Administrative Committee may reasonably request.

     

    (d)  Payment
      of Withdrawal.
      The
      amount of a hardship withdrawal shall be paid to a Participant in a single
      sum
      in cash on the date the Administrative Committee approves the withdrawal
      application. This payment date is intended as good faith compliance with Code
      §409A, and shall be construed in all respects in accordance therewith. Neither
      the Participating Companies, Trustee nor the Administrative Committee shall
      be
      liable to a Participant or Beneficiary for any delay in such payment, provided
      that payment is made within the same calendar year as the payment date specified
      in this paragraph, or, if later, by the 15th
      day of
      the third calendar month following the payment date specified in this
      paragraph.

     

    7.6  Unclaimed
      Benefits.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    In
      the
      event a Participant becomes entitled to benefits under the Plan other than
      death
      benefits and the Administrative Committee is unable to locate such Participant
      (after sending a letter, return receipt requested, to the Participant’s last
      known address, and after such further diligent efforts as the Administrative
      Committee in its sole discretion deems appropriate) within 1 year from the
      date
      upon which he becomes so entitled, the Administrative Committee shall direct
      that such benefits be paid to the Beneficiary of such Participant; provided,
      if
      the distribution is payable upon the termination of the Plan, the Administrative
      Committee shall not be required to wait until the end of such 1-year period.
      If
      the Participant and the Beneficiary cannot be located and fail to claim such
      benefits by the end of the 5th Plan Year following the Plan Year in which such
      Participant becomes entitled to such benefits, then the full Account of the
      Participant shall be deemed abandoned and shall be used to reduce the Matching
      Contributions of the Participating Company or Companies which employed such
      Participant; provided, in the event such Participant or Beneficiary is located
      or makes a claim subsequent to the allocation of the abandoned Account but
      prior
      to the expiration of the time within which any such person’s claim to the
      Account would expire under appropriate state law, then the amount of the
      abandoned Account (unadjusted for any investment gains or losses from the time
      of abandonment) shall be restored (from abandoned Accounts, Trust earnings
      or
      Contributions made by the Participating Company or Companies with whom the
      Participant formerly was employed) and paid to such Participant or Beneficiary,
      as appropriate; and, provided, further, the Administrative Committee, in its
      sole discretion, may delay the deemed date of abandonment of any such Account
      for a period longer than the prescribed 5 Plan Years if it believes that it
      is
      in the best interest of the Plan to do so.

     

    7.7  Claims.

     

    (a)  Authorized
      Representative.
      A
      Participant or Beneficiary may name an authorized representative to act on
      his
      behalf under the claims procedures of the Plan, by providing written
      documentation of such authorization in such form as is acceptable to the
      Administrative Committee.

     

    (b)  Procedure
      for Making Initial Claims.
      Claims
      for benefits under the Plan may be made by submitting a written claim to the
      Administrative Committee clearly identified as a claim for benefits under the
      Plan.

     

    (c)  Review
      of Initial Claims.
      The
      Administrative Committee shall furnish to the claimant written notice of the
      disposition of a claim within 90 days after the application therefor is filed;
      provided, if special circumstances require an extension of time for processing
      the claim, the Administrative Committee shall furnish written notice of the
      extension to the claimant prior to the termination of the initial 90-day period,
      and such extension shall not exceed one additional, consecutive 90-day period.
      In the event the claim is denied, the notice of the disposition of the claim
      shall contain (i) specific reasons for the denial, (ii) specific references
      to
      Plan provisions on which the Administrative Committee based its denial, (iii)
      a
      description of any additional material or information necessary for the claimant
      to perfect the claim and an explanation of why such material or information
      is
      necessary and (iv) a description of the Plan’s review procedures and time limits
      applicable to such procedures, including a statement of the claimant’s right to
      bring a civil action under section 502(a) of ERISA following an adverse benefit
      determination on review. The notice will also contain a statement that the
      claimant may (i) request a review upon written application to the Administrative
      Committee within 60 days, (ii) submit written comments, documents, records
      and
      other information relating to the claim, and (iii) request copies of all
      documents, records, and other information relevant to the claim. If a claim
      is
      denied because of incomplete information, the notice will also indicate what
      additional information is required.

     

    (d)  Review
      Procedure.
      Any
      Participant or Beneficiary who has been denied a benefit, or his duly authorized
      representative, shall be entitled, upon request to the Administrative Committee,
      to appeal the denial of his claim. To do so, the claimant must make a written
      request to the Administrative Committee for further consideration of his
      position. The form containing the request for review, together with a written
      statement of the claimant’s position, must be filed with the Administrative
      Committee no later than 60 days after receipt of the written notification of
      denial of a claim provided for in subsection (a). Pertinent documents may be
      reviewed in preparing an appeal, and issues and comments may be submitted in
      writing. The claimant will be provided, upon request and free of charge,
      reasonable access to, and copies of, all documents, records and other
      information relevant to the claim for benefits (as determined under applicable
      regulations). The Administrative Committee will completely review the appeal,
      taking into account all comments, documents, records and other information
      submitted by the claimant without regard to whether such information was
      submitted or considered in the initial benefit determination. The Administrative
      Committee’s decision shall be made in writing within 60 days following the
      claimant’s request for review, unless special circumstances require a further
      extension of time for processing, in which case a benefit determination shall
      be
      rendered no later than 120 days following the Administrative Committee’s receipt
      of the request for review. If such an extension of time for review is required
      because of special circumstances, the Administrative Committee will provide
      the
      claimant with written notice of the extension, describing the special
      circumstances and the date as of which the benefit determination will be made,
      prior to the commencement of the extension. If unfavorable, the notice of
      decision shall explain the reason or reasons for denial and indicate the
      provisions of the Plan or other documents used to arrive at the
      decision.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    (e)  Satisfaction
      of Claims.
      Any
      payment to a Participant or Beneficiary or to their legal representative or
      heirs at law, all in accordance with the provisions of the Plan, shall to the
      extent thereof be in full satisfaction of all claims hereunder against the
      Trustee, the Administrative Committee and the Controlling Company, any of whom
      may require such Participant, Beneficiary, legal representative or heirs at
      law,
      as a condition to such payment, to execute a receipt and release therefor in
      such form as shall be determined by the Trustee, the Administrative Committee
      or
      the Controlling Company, as the case may be. If receipt and release shall be
      required but execution by such Participant, Beneficiary, legal representative
      or
      heirs at law shall not be accomplished so that the terms of §§7.1 and 7.2 may be
      fulfilled, such benefits may be distributed or paid into any appropriate court
      or to such other place as such court shall direct, for disposition in accordance
      with the order of such court, and such distribution shall be deemed to comply
      with the requirements of §§7.1 and 7.2.

     

    ARTICLE
      VIII

     

    ALLOCATION
      OF AUTHORITY AND RESPONSIBILITIES

     

    8.1  Administrative
      Committee

     

    (a)  Appointment
      and Term of Office.
      The
      Administrative Committee shall consist of not less than one member who shall
      be
      appointed by and serve at the pleasure of the Board. The Board shall have the
      right to remove any member of the Administrative Committee at any time. A member
      may resign at any time by written resignation to the Board. If a vacancy in
      the
      Administrative Committee should occur, a successor may be appointed by the
      Board. A written certification shall be given to the Trustee by the Board of
      all
      members of the Administrative Committee together with a specimen signature
      of
      each member. For all purposes hereunder, the Trustee shall be conclusively
      entitled to rely upon such certification until the Trustee is otherwise notified
      in writing.

     

    (b)  Organization.
      The
      Administrative Committee may elect a Chairman and a Secretary from among its
      members. In addition to those powers set forth elsewhere in the Plan, the
      Administrative Committee may appoint such agents, who need not be members of
      such Administrative Committee, as it may deem necessary for the effective
      performance of its duties and may delegate to such agents such powers and
      duties, whether ministerial or discretionary, as the Administrative Committee
      may deem expedient or appropriate. The compensation of such agents who are
      not
      full-time Employees of a Participating Company shall be fixed by the
      Administrative Committee within limits set by the Board and shall be paid by
      the
      Controlling Company (to be divided equitably among the Participating Companies)
      or from the Trust Fund as determined by the Administrative Committee. The
      Administrative Committee shall act by majority vote. Its members shall serve
      as
      such without compensation.

     

    
      
        
        

      

      
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    (c)  Powers
      and Responsibility.
      The
      Administrative Committee shall have complete control of the administration
      of
      the Plan hereunder, with all powers necessary to enable it properly to carry
      out
      its duties as set forth in the Plan and the Trust Agreement. The Administrative
      Committee shall have the sole authority in its discretion to (i) construe the
      Plan and to determine all questions that shall arise thereunder; (ii) decide
      all
      questions relating to the eligibility of Employees to participate in the
      benefits of the Plan; (iii) determine the benefits of the Plan to which any
      Participant or Beneficiary may be entitled; (iv) maintain and retain records
      relating to Participants and Beneficiaries; (v) prepare and furnish to the
      Trustee sufficient employee data and the amount of Contributions received from
      all sources so that the Trustee may maintain separate accounts for Participants
      and Beneficiaries and make required payments of benefits; (vi) arrange for
      any
      required fiduciary bonding; and (vii) prepare and file or publish with the
      Secretary of Labor, the Secretary of the Treasury, their delegates and all
      other
      appropriate government officials all reports and other information required
      under law to be so filed or published.

     

    (d)  Administrative
      Committee Records.
      Any
      notice, direction, order, request, certification or instruction of the
      Administrative Committee to the Trustee shall be in writing and shall be signed
      by a member of the Administrative Committee. The Trustee and every other person
      shall be entitled to rely conclusively upon any and all such notices,
      directions, orders, requests, certifications and instructions received from
      the
      Administrative Committee and reasonably believed to be properly executed, and
      shall act and be fully protected in acting in accordance therewith. All acts
      and
      determinations of the Administrative Committee shall be duly recorded by its
      Secretary or under his supervision, and all such records, together with such
      other documents as may be necessary for the administration of the Plan, shall
      be
      preserved in the custody of such Secretary.

     

    (e)  Reporting
      and Disclosure.
      The
      Administrative Committee shall keep all individual and group records relating
      to
      Participants and Beneficiaries and all other records necessary for the proper
      operation of the Plan. Such records shall be made available to the Participating
      Companies and to each Participant and Beneficiary for examination during normal
      business hours except that a Participant or Beneficiary shall examine only
      such
      records as pertain exclusively to the examining Participant or Beneficiary
      and
      the Plan and Trust Agreement. The Administrative Committee shall prepare and
      shall file as required by law or regulation all reports, forms, documents and
      other items required by any relevant statute, each as amended, and all
      regulations thereunder. This provision shall not be construed as imposing upon
      the Administrative Committee the responsibility or authority for the
      preparation, preservation, publication or filing of any document required to
      be
      prepared, preserved or filed by the Trustee or by any other entity to whom
      such
      responsibilities are delegated by law or by the Plan.

     

    (f)  Plan
      Construction.
      The
      Administrative Committee shall take such steps as are considered necessary
      and
      appropriate to remedy any inequity that results from incorrect information
      received or communicated in good faith or as the consequence of an
      administrative error. The Administrative Committee shall interpret the Plan
      and
      shall determine the questions arising in the administration, interpretation
      and
      application of the Plan. The Administrative Committee shall endeavor to act,
      whether by general rules or by particular decisions, so as not to discriminate
      in favor of or against any person and so as to treat all persons in similar
      circumstances uniformly. The Administrative Committee shall correct any defect,
      reconcile any inconsistency or supply any omission with respect to the
      Plan.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    (g)  Assistants
      and Advisers.
      The
      Administrative Committee shall have the right to hire, at the expense of the
      Controlling Company (to be divided equitably among the Participating Companies),
      such professional assistants and consultants as it, in its sole discretion,
      deems necessary or advisable. To the extent that the costs for such assistants
      and advisers are not so paid by the Controlling Company, they shall be paid
      at
      the direction of the Administrative Committee from the Trust Fund as an expense
      of the Trust Fund. The Administrative Committee and the Participating Companies
      shall be entitled to rely upon all certificates and reports made by an actuary,
      accountant or attorney selected pursuant to this §8.1; the Administrative
      Committee, the Participating Companies, and the Trustee shall be fully protected
      in respect to any action taken or suffered by them in good faith in reliance
      upon the advice or opinion of any such actuary, accountant or attorney; and
      any
      action so taken or suffered shall be conclusive upon each of them and upon
      all
      other persons interested in the Plan.

     

    (h)  Indemnification.
      The
      Administrative and Investment Committees and each member of those committees
      shall be indemnified by the Participating Companies against judgment amounts,
      settlement amounts (other than amounts paid in settlement to which the
      Participating Companies do not consent) and expenses reasonably incurred by
      the
      Administrative and Investment Committees or each member of the Administrative
      and Investment Committees in connection with any action to which the
      Administrative or Investment Committee or any member thereof may be a party
      (by
      reason of his service as a member of the Administrative or Investment Committee)
      except in relation to matters as to which the Administrative or Investment
      Committee or any member thereof shall be adjudged in such action to be
      personally guilty of gross negligence or willful misconduct in the performance
      of its or any member’s duties. The foregoing right to indemnification shall be
      in addition to such other rights as such Administrative and Investment
      Committees or each member may enjoy as a matter of law or by reason of insurance
      coverage of any kind. Rights granted hereunder shall be in addition to and
      not
      in lieu of any rights to indemnification to which such Administrative and
      Investment Committees or each member may be entitled pursuant to the by-laws
      of
      the Controlling Company. Service on the Administrative or Investment Committee
      shall be deemed in partial fulfillment of a committee member’s function, if any,
      as an Employee, officer and/or director of the Controlling Company or any
      Participating Company.

     

    8.2  Controlling
      Company and Board.

     

    (a)  General
      Responsibilities.
      The
      Controlling Company and the Board shall have the authority and responsibility
      to
      (i) appoint the Trustee, the Investment Committee and the Administrative
      Committee and to monitor each of their performances; (ii) communicate such
      information to the Trustee, the Investment Committee and the Administrative
      Committee as each needs for the proper performance of its duties; (iii) provide
      channels and mechanisms through which the Administrative Committee, the
      Investment Committee and/or the Trustee can communicate with Participants and
      Beneficiaries; and (iv) perform such duties as are imposed by law or by
      regulation and serve as Plan Administrator in the absence of an appointed
      Administrative Committee.

     

    (b)  Allocation
      of Authority.
      In the
      event any of the areas of authority and responsibilities of the Controlling
      Company and the Board overlap with that of any other entity, the Controlling
      Company and the Board shall coordinate with such other entity the execution
      of
      such authority and responsibilities; provided, the decision of the Controlling
      Company and the Board with respect to such authority and responsibilities
      ultimately shall be controlling.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    (c)  Authority
      of Participating Companies.
      Notwithstanding anything herein to the contrary, and in addition to the
      authority and responsibilities specifically given to the Participating Companies
      in the Plan, the Controlling Company, in its sole discretion, may grant the
      Participating Companies such authority and charge them with such
      responsibilities as the Controlling Company deems appropriate.

     

    8.3  Trustee.

     

    The
      Trustee shall have the powers and duties set forth in the Trust
      Agreement.

     

    8.4  Delegation.

     

    Entities
      described in this section shall have the power to delegate specific
      responsibilities (other than Trustee responsibilities) to persons whom shall
      serve at the pleasure of the entity making such delegation and, if full-time
      Employees of a Participating Company, without compensation. Any such person
      may
      resign by delivering a written resignation to the delegating entity. Vacancies
      created by any reason may be filled by the appropriate entity or the assigned
      responsibilities may be reabsorbed or redelegated by the entity.

     

    ARTICLE
      IX

     

    AMENDMENT,
      TERMINATION AND ADOPTION

     

    9.1  Amendment.

     

    The
      provisions of the Plan may be amended at any time and from time to time by
      the
      Board; provided:

     

    (a)  No
      amendment shall increase the duties or liabilities of the Trustee without the
      consent of such party;

     

    (b)  No
      amendment shall decrease the balance or vested percentage of an
      Account;

     

    (c)  Each
      amendment shall be approved by the Board by resolution;

     

    (d)  No
      amendment shall be made that violates the restrictions of Code §409A;
      and

     

    (e)  No
      amendment shall be made to §5.1(c) of the Plan (unless required by
      law).

     

    9.2  Termination.

     

    (a)  Right
      to Terminate.
      The
      Controlling Company expects the Plan to be continued indefinitely, but, subject
      to subsection (c) below, it reserves the right to terminate the Plan or to
      completely discontinue Contributions to the Plan at any time by action of the
      Board. In either event, the Administrative Committee, each Participating Company
      and the Trustee shall be promptly advised of such decision in
      writing.

     

    (b)  Dissolution
      of Trust.
      In the
      event that the Administrative Committee decides to dissolve the Trust, as soon
      as practicable following the termination of the Plan or the Administrative
      Committee’s decision, whichever is later, the assets under the Plan shall be
      converted to cash or other distributable assets, to the extent necessary to
      effect a complete distribution of the Trust assets to the Controlling
      Company.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (c)  Restrictions
      on Termination.
      No
      termination of this Plan shall decrease or eliminate the vested Account balance
      of any Participant hereunder as determined as of the date of such termination.
      Furthermore, the Plan may be terminated only as follows:

     

    (1)  The
      Board
      may terminate the Plan within 12 months of a corporate dissolution taxed under
      Code §331, or with the approval of a bankruptcy court pursuant to 11 U.S.C.
§503(b)(1)(A). In the event of termination pursuant to this subsection, the
      amounts deferred under the Plan shall be included in the Participants’ gross
      incomes in the latest of the calendar year in which the Plan termination occurs,
      the calendar year in which the amount is no longer subject to a substantial
      risk
      of forfeiture, or the first calendar year in which the payment of benefits
      is
      administratively practicable.

     

    (2)  The
      Board
      may terminate the Plan within the 30 days preceding or the 12 months following
      a
“change in control event”; provided that the Plan may not be terminated pursuant
      to this provision unless all substantially similar arrangements sponsored by
      the
      Controlling Company (and its related entities as determined under Code §409A and
      guidance issued thereunder) are terminated, so that the Participants and all
      participants under substantially similar arrangements are required to receive
      all amounts of compensation deferred under the Plan and any other terminated
      arrangements within 12 months of the date of termination of such arrangements.
      For purposes of this paragraph, “change in control event” shall have the meaning
      set forth in Proposed Treasury Regulations under Code §409A, or successor
      provisions, and substantially similar arrangements shall be determined pursuant
      to regulations under Code §409A.

     

    (3)  The
      Board
      may terminate the Plan other than as provided in subsections (1) and (2) above
      only if:

     

    (A)  All
      arrangements sponsored by the Controlling Company (and its related entities
      as
      determined under Code §409A and guidance issued thereunder) that would be
      aggregated with the Plan under Code §409A if the same service provider
      participated in all of the arrangements (the “Aggregated Arrangements”) are
      terminated; and

     

    (B)  No
      payments other than payments that would be payable under the terms of the Plan
      and the Aggregated Arrangements if the termination had not occurred are made
      within 12 months of the termination of the Plan; and

     

    (C)  All
      payments pursuant to the Plan and the Aggregated Arrangements are made within
      24
      months of the termination of the Plan; and

     

    (D)  The
      Controlling Company (and its related entities as determined under Code §409A and
      guidance issued thereunder) does not adopt a new arrangement that would be
      aggregated with the Plan or any Aggregated Arrangement if the same service
      provider participated in both arrangements, at any time within five years
      following the date of termination of the Plan.

     

    (d)  Payment
      Upon Termination.
      If the
      Plan is terminated, the value of the vested Account balances of Participants
      shall be paid to such Participants in a single lump sum cash payment on the
      earlier of the date of termination, or the earliest date permissible under
      subsection (c) above.

     

    9.3  Adoption
      of the Plan by a Participating Company.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (a)  Procedures
      for Participation.
      The
      Controlling Company and each Affiliate shall be Participating Companies in
      the
      Plan; provided, however, the Controlling Company may determine that any
      Affiliate is not to be a Participating Company, and such Affiliate shall be
      recorded on Schedule A hereto which shall be appropriately modified from time
      to
      time without the necessity of a Plan amendment. Upon an Affiliate becoming
      a
      Participating Company as herein provided, the Employees of such company shall
      be
      eligible to participate in the Plan subject to the terms hereof and of the
      documentation designating the Participating Company as such.

     

    (b)  Authority
      under Plan.
      Each
      Participating Company shall be bound by, and subject to, all provisions of
      the
      Plan and the Trust. The exclusive authority to amend the Plan and the Trust
      shall be vested in the Administrative Committee, and no Participating Company
      other than the Controlling Company shall have any right to amend the Plan or
      the
      Trust. Any amendment to the Plan or the Trust adopted by the Controlling Company
      shall be binding upon every Participating Company without further action by
      such
      Participating Company.

     

    (c)  Contributions
      to Plan.
      Each
      Participating Company shall be required to make Contributions to the Plan at
      such times and in such amounts as specified in Article III. The Contributions
      made (or to be made) to the Plan by the Participating Companies shall be
      allocated between and among such companies in whatever equitable manner or
      amounts as the Administrative Committee shall determine.

     

    (d)  Withdrawal
      from Plan.
      No
      Participating Company other than the Controlling Company shall have the right
      to
      terminate the Plan. However, any Participating Company may withdraw from the
      Plan, with the approval of the Administrative Committee, by action of its board
      of directors, provided such action is communicated in writing to the
      Administrative Committee. The withdrawal of a Participating Company shall be
      effective as of the last day of the Plan Year which follows receipt of the
      notice of withdrawal (unless the Controlling Company consents to a different
      effective date). In addition, the Administrative Committee may terminate the
      designation of a Participating Company to be effective on such date as the
      Administrative Committee specifies. Any such Participating Company which ceases
      to be a Participating Company shall be liable for all costs accrued through
      the
      effective date of its withdrawal or termination. In the event of the withdrawal
      or termination of a Participating Company as provided in this Section, such
      Participating Company shall have no right to direct that assets of the Plan
      be
      transferred to a successor plan for its employees, unless such transfer is
      approved by the Controlling Company or Administrative Committee in its sole
      discretion.

     

    ARTICLE
      X

     

    MISCELLANEOUS

     

    10.1  Nonalienation
      of Benefits and Spendthrift Clause.

     

    None
      of
      the Accounts, benefits, payments, proceeds or distributions under the Plan
      shall
      be subject to the claim of any creditor of a Participant or Beneficiary or
      to
      any legal process by any creditor of such Participant or of such Beneficiary;
      and neither such Participant nor any such Beneficiary shall have any right
      to
      alienate, commute, anticipate or assign any of the Accounts, benefits, payments,
      proceeds or distributions under the Plan except to the extent expressly provided
      herein. If any Participant shall attempt to dispose of his Account or the
      benefits provided for him hereunder or to dispose of the right to receive such
      benefits, or, in the event there should be an effort to seize such Account
      or
      benefits by attachment, execution or other legal or equitable process, such
      right may pass and be transferred, at the discretion of the Administrative
      Committee, to such person or persons as may be selected by the Administrative
      Committee from among the Beneficiaries, if any, theretofore designated by the
      Participant, or from the Spouse, children or other dependents of the
      Participant, in such shares as the Administrative Committee may appoint. Any
      appointments so made by the Administrative Committee may be revoked by it at
      any
      time, and further appointments made by it may include the
      Participant.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    10.2  Headings.

     

    The
      headings and subheadings in the Plan have been inserted for convenience of
      reference only and are to be ignored in any construction of the provisions
      hereof.

     

    10.3  Construction,
      Controlling Law.

     

    In
      the
      construction of the Plan, the masculine shall include the feminine and the
      feminine the masculine, and the singular shall include the plural and the plural
      the singular, in all cases where such meanings would be appropriate. Unless
      otherwise specified, any reference to a section shall be interpreted as a
      reference to a section of the Plan. The Plan shall be construed in accordance
      with the laws of the State of Georgia and applicable federal laws.

     

    10.4  No
      Contract of Employment.

     

    Neither
      the establishment of the Plan, nor any modification thereof, nor the creation
      of
      any fund, trust or account, nor the payment of any benefits shall be construed
      as giving any Participant, Employee or any person whomsoever the right to be
      retained in the service of any Affiliate, and all Participants and other
      Employees shall remain subject to discharge to the same extent as if the Plan
      had never been adopted.

     

    10.5  Legally
      Incompetent.

     

    The
      Administrative Committee may in its discretion direct that payment be made
      and
      the Trustee shall make payment on such direction, directly to an incompetent
      or
      disabled person, whether incompetent or disabled because of minority or mental
      or physical disability, or to the guardian of such person or to the person
      having legal custody of such person, without further liability with respect
      to
      or in the amount of such payment either on the part of any Participating
      Company, the Administrative Committee or the Trustee.

     

    10.6  Heirs,
      Assigns and Personal Representatives.

     

    The
      Plan
      shall be binding upon the heirs, executors, administrators, successors and
      assigns of the parties, including each Participant and Beneficiary, present
      and
      future.

     

    10.7  Unsecured
      Creditor Rights.

     

    No
      Participant or Beneficiary shall have any right to, or interest in, any assets
      of the Trust Fund other than that of a general unsecured creditor of the
      Controlling Company.

     

    10.8  Legal
      Action.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    In
      any
      action or proceeding involving the assets held with respect to the Plan or
      Trust
      Fund or the administration thereof, the Participating Companies, the
      Administrative Committee and the Trustee shall be the only necessary parties
      and
      no Participants, Employees, or former Employees, their Beneficiaries or any
      other person having or claiming to have an interest in the Plan shall be
      entitled to any notice of process; provided, that such notice as is required
      by
      the IRS and the Department of Labor to be given in connection with Plan
      amendments, termination, curtailment or other activity shall be given in the
      manner and form and at the time so required. Any final judgment which is not
      appealed or appealable that may be entered in any such action or proceeding
      shall be binding and conclusive on the parties hereto, the Administrative
      Committee and all persons having or claiming to have an interest in the
      Plan.

     

    10.9  Severability.

     

    If
      any
      provisions of the Plan shall be held invalid or unenforceable, such invalidity
      or unenforceability shall not affect any other provisions hereof, and the Plan
      shall be construed and enforced as if such provisions had not been
      included.

     

    10.10  Predecessor
      Service.

     

    In
      the
      event a Participating Company maintains the Plan as successor to a predecessor
      employer who maintained the Plan, service for the predecessor employer shall
      be
      treated as service for the Participating Company.

     

    10.11  Plan
      Expenses.

     

    Expenses
      incurred with respect to administering the Plan and Trust shall be paid by
      the
      Trustee from the Trust Fund only to the extent such costs are not paid by the
      Participating Companies or to the extent the Controlling Company requests that
      the Trustee reimburse it for its payment of such expenses.

     

    IN
      WITNESS WHEREOF, the Controlling Company has caused this Plan to be executed
      by
      its duly authorized officers and its corporate seal to be affixed hereto, as
      of
      the 11th day of December, 2006.

     

    AGL
      RESOURCES INC.

     

    By:
      /s/
      Melanie M. Platt 

     

    Title:
      Senior
      Vice President 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      A

     

    NONPARTICIPATING
      AFFILIATES

    

    

    NONE

    

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      B

     

    EFFECTIVE
      FOR PERIODS BEGINNING ON OR AFTER JANUARY 1, 2007

    ITEMS
      EXCLUDED
      FROM “COMPENSATION” UNDER §1.15 OF NSP

     

    
      	
              PAYROLL
                CODE

            	
              DESCRIPTION

            
	
              ADP

            	
              Adoption
                Aid Assistance

            
	
              APD

            	
              Appliance
                discount

            
	
              APR

            	
              Appliance
                Reimbursement

            
	
              ATT

            	
              ATPI
                Bonus-Terminated Employee

            
	
              AWD

            	
              Non-cash
                Awards

            
	
              CAR

            	
              Car
                Allowance

            
	
              CCD

            	
              Country
                Club Dues

            
	
              CCR

            	
              Cntry
                Club Cash Reimbursement

            
	
              DCC

            	
              Dependent
                Care Current Year

            
	
              DCR

            	
              Dependent
                Care Reimbursement

            
	
              DIS

            	
              State
                Dis Earnings (#05)

            
	
              EAF

            	
              Executive
                Allowance Fund

            
	
              EAG

            	
              EAF
                Gross Up Amount

            
	
              EAP

            	
              Executive
                Allowance Payout

            
	
              EFB

            	
              Employee
                Fitness Reimbursement

            
	
              ESP

            	
              ESPP
                Taxable Earnings

            
	
              EXE

            	
              Executive
                Pay

            
	
              EXP

            	
              Expense
                Reporting Reimbursement

            
	
              EXS

            	
              Executive
                Retirement Pay

            
	
              FIM

            	
              Flex
                Imputed Life

            
	
              FIT

            	
              Health
                Club

            
	
              FLX

            	
              Flex
                Dollars

            
	
              FRE

            	
              Flex
                Vacation Refund

            
	
              GRP

            	
              GRIP
                Premium

            
	
              GRU

            	
              Gross
                Up for Taxes

            
	
              HCC

            	
              Health
                Care Current Year

            
	
              HCR

            	
              Health
                Care Reimbursement

            
	
              INS

            	
              Additional
                Insurance

            
	
              ISO

            	
              Incentive
                Stock Option

            
	
              LDV

            	
              Lump
                Sum Payment Deceased Employee

            
	
              LSR

            	
              Lump
                Sum Retirement

            
	
              LSS

            	
              Lump
                Sum Severance Pay

            
	
              LTD

            	
              LTD
                Flex Credit Adjustment

            
	
              LTF

            	
              Long
                Term Disability Flex Dollars

            
	
              LTI

            	
              Long
                Term Incentive

            
	
              MEA

            	
              Meals
                Overtime

            
	
              MED

            	
              Medical
                Credit

            
	
              MO2

            	
              Moving
                Expense / Taxable

            
	
              MO3

            	
              Taxable
                Moving Third Party

            
	
              MOA

            	
              Moving
                Expense

            
	
              MOV

            	
              Moving
                Expense / Non Taxable

            
	
              MPY

            	
              Mileage
                Pay - Propane

            
	
              NQP

            	
              Non
                Qualified Savings Plan

            
	
              NQR

            	
              Non
                Qualified Retirement Plan

            
	
              NQS

            	
              Non
                Qualified Stock Options

            
	
              NTU

            	
              Nontaxable
                Tuition Reimbursement

            
	
              PAR

            	
              Restricted
                PAR Stock

            
	
              PTY

            	
              3rd
                Party Tax Ben

            
	
              QSK

            	
              Qualified
                Restricted Stock

            
	
              RGP

            	
              Grip
                for Retiree

            
	
              RGU

            	
              Retiree
                Grossup

            
	
              RIM

            	
              Retiree
                Imputed Income

            
	
              RTA

            	
              Retirement
                Adjustment

            
	
              SAR

            	
              SAR
                Stock Option

            
	
              SAV

            	
              Severance
                Salaried

            
	
              SEP

            	
              Separation
                Pay

            
	
              SET

            	
              Settlement
                - Union

            
	
              SEV

            	
              Severance
                Pay

            
	
              SIG

            	
              Sign
                on Bonus Less than 30 days

            
	
              SLF

            	
              Supplemental
                Life Flex Dollars

            
	
              SPB

            	
              Spouse
                Benefit

            
	
              SUP

            	
              Supplemental
                Pay

            
	
              TEL

            	
              Tele
                Reimbursement (#22 Share)

            
	
              TPY

            	
              Third
                Party Sick Pay

            
	
              TRA

            	
              Transportation
                Allowance

            
	
              TUI

            	
              Tuition
                Reimbursement / Taxable

            
	
              TX1

            	
              Taxable
                Dist. under Age 59 1⁄2 

            
	
              TX2

            	
              Taxable
                Dist. over Age 59 1⁄2 

            
	
              UNI

            	
              Uniform
                Reimbursement

            
	
              VEH

            	
              VNG
                Car Allowance

            
	
              WGL

            	
              Wages
                in Lieu of Notice

            

    

    

    
      
        
        

      

      
        35Description of Annual Incentive Compensation Arrangement for Douglas N. Schantz

     

    
      
        

      

    

    Exhibit
      10.1.ai

     

     

    

      Annual
        Incentive Arrangement for Douglas N. Schantz

      

      During
        2006, at the direction of the Compensation and Management Development Committee
        of the Board of Directors (the “C&MD Committee”) of AGL Resources Inc. (the
“Company”), management adopted an annual incentive arrangement (the “Schantz
        Annual Incentive”) for the benefit of Douglas N. Schantz, President, Sequent
        Energy Management, LP (“Sequent”). Generally, the Schantz Annual Incentive is
        based upon Company EPS, Sequent corporate performance and his individual
        performance in leading the Sequent business. Sequent's performance is measured
        by its earnings before interest and taxes (EBIT) against expectations set
        earlier in the year. For the 2006 plan year, actual payout is based on the
        total
        Sequent bonus pool which is a percentage of Sequent’s EBIT for 2006. This pool
        is used to pay all participants in the Sequent plan as well as Mr. Schantz.
        Additional factors considered by the C&MD Committee in determining Mr.
        Schantz’ 2006 annual incentive payment are Sequent’s performance against the
        plan’s performance measures and the amounts earned under the Sequent plan by Mr.
        Schantz’ direct reports. Pursuant to the terms of the Schantz Annual Incentive,
        if the Company’s earnings per share (“EPS”) threshold, set forth in the
        Company’s Annual Incentive Plan (previously filed with the Commission as Exhibit
        10.1 of the AGL Resources Inc. Form 8-K Amendment No. 1 filed on February
        24,
        2006) is not achieved, then no payment will be made. 

      

      The
        Sequent incentive plan provides for mandatory deferral of 50% of any amount
        earned by a participant for a plan year, which exceeds the participant’s annual
        base salary for that year. The deferred amount is payable in approximately
        equal
        installments on each of the first two anniversaries of the deferral date.
        If a
        participant experiences a termination of employment, for any reason, before
        an
        anniversary date, the applicable installment is forfeited. During the deferral
        period, deferred amounts earn interest calculated at the appropriate treasury
        rate. The deferral feature described above also applies to Mr. Schantz’ Annual
        Incentive.

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