NJR 8-K
New Jersey Resources Corp (NJR)
8-K
2022-11-17
For: 2022-11-10
View Original
Added on
April 08, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 10, 2022
(Exact Name of registrant as specified in its charter)
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of Principal Executive Offices)
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(Zip Code)
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(732 ) 938-1480
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on
which registered
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to
use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 |
Results of Operations and Financial Condition.
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On November 17, 2022, New Jersey Resources Corporation (the “Company”) issued a press release reporting financial results for the fourth fiscal quarter and
fiscal year ended September 30, 2022 (the “Earnings Release”). A copy of the Earnings Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as
amended.
| Item 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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(e) Fiscal 2023 Officer Annual Incentive Plan
At its November 10, 2022 meeting, the Leadership Development and Compensation Committee (the “LDCC”) of the Board of Directors (the “Board”) of the Company
approved several items relating to compensatory arrangements with its named executive officers (“NEOs”). The details of these approvals are outlined below.
On November 10, 2022, the LDCC approved the Company’s fiscal year 2023 Officer Annual Incentive Plan (the “2023 OIP”) for officers of the Company and its
subsidiaries. For fiscal year 2023, each of the Company’s NEOs participate in the 2023 OIP. The objectives for the 2023 OIP are to maintain line of sight for each executive officer by providing them with an understanding of their individual
objectives and how they could be achieved based on areas that they impact, continue the linkage to corporate results and provide flexibility to determine awards based on qualitative performance assessments.
The performance criteria for receiving an annual incentive award under the 2023 OIP are net financial earnings (“NFE”), individual leadership and the
Company’s “Commitment to Stakeholders” goals. Under the 2023 OIP, a performance hurdle based on the Company’s NFE for fiscal year 2023 must be met in order to be eligible to receive an award. Each of the NEO’s annual incentive awards under the 2023
OIP is based 50 percent on the Company’s NFE, 30 percent on the NEO achieving an individual leadership component and 20 percent on the Company meeting the goals of an overall “Commitment to Stakeholders” component. Under the 2023 OIP, the target
annual incentive award opportunity for the NEOs, other than the President and Chief Executive Officer, ranges from 40 to 60 percent of base salary and the target annual incentive award opportunities for the President and Chief Executive Officer is
110 percent of base salary. Actual fiscal year 2023 cash incentive award payments under the 2023 OIP, if earned, could range from 0 percent up to 150 percent of this targeted amount for each of the NEOs. Amounts payable under the 2023 OIP that
exceeded 100 percent of the target amount could be paid in full, or in part, in the form of restricted stock units (“RSUs”) and/or Deferred Retention Stock Units (“DRSUs”) based on the President and Chief Executive Officer’s recommendation and
subsequent approval by the LDCC, or in the case of the President and Chief Executive Officer, based on the LDCC’s determination.
In addition, under the 2023 OIP, based upon the recommendations of the President and Chief Executive Officer, the LDCC reserves the ability to modify, based
upon its qualitative assessment, any annual incentive award payable. In addition, the President and Chief Executive Officer, subject to LDCC approval, may recommend special recognition awards to NEOs who have made significant contributions and have
demonstrated a sustained level of outstanding performance. The LDCC may approve special recognition awards to the President and Chief Executive Officer. The special recognition awards, if any, may be in the form of cash, RSUs or DRSUs.
Any award payable to an NEO under the 2023 OIP is subject to the Company’s “Compensation Recoupment Policy.”
Long-Term Incentive Program Awards
Pursuant to grants made on November 10, 2022, the Board awarded (i) performance share units with performance criteria based upon the Company’s total
shareholder return (“FY 2023 TSR Performance Share Units”) and with performance criteria based upon the Company’s cumulative NFE per share (“FY 2023 NFE Performance Share Units”) to each of the Company’s NEOs; (ii) RSUs to each of the NEOs, other
than Mr. Stephen D. Westhoven; and (iii) performance-based RSUs with performance criteria based upon an NFE-based performance (“PBRSUs”) goal to Mr. Westhoven (such awards, collectively, the “Awards”), all pursuant to the Company’s 2017 Stock Award
and Incentive Plan.
Performance Share Units
The FY 2023 TSR Performance Share Units vest, if at all, at the end of a 36-month performance period beginning on October 1, 2022, and ending on September
30, 2025, based on relative Company total shareholder return versus an established comparator group.
The FY 2023 NFE Performance Share Units vest, if at all, based upon the Company’s cumulative NFE per share over the 36-month period beginning on October 1,
2022, and ending on September 30, 2025.
On their vesting dates, the FY 2023 TSR Performance Share Units and FY 2023 NFE Performance Share Units are payable in shares of the Company’s common stock
(“Common Stock”) in amounts ranging from zero to 150 percent of the number of granted performance share units. Additional shares of Common Stock may be awarded on the vesting dates with respect to the computed value of dividend equivalents accrued
(measured against the Common Stock) during the performance measurement periods, subject to the Company’s achievement of prescribed performance goals. If the Company’s performance does not meet the minimum threshold level, no units will vest.
Restricted Stock Units
The RSUs awarded by the Company to the NEOs will accrue dividends and will vest in three equal installments on October 15, 2023, October 15, 2024 and
October 15, 2025, subject to continued employment of the NEO, in each case except under certain conditions. The RSUs are payable in shares of the Company’s Common Stock.
Performance-Based Restricted Stock Units
The PBRSUs awarded to Mr. Westhoven will accrue dividends and may vest in up to three equal installments on September 30, 2023, September 30, 2024, and
September 30, 2025, if the NFE-based performance goal for the fiscal year ending September 30, 2023 is achieved, and subject to his continued employment, except under certain conditions. The PBRSUs are payable in shares of the Company’s Common Stock.
Award Agreements
The foregoing descriptions of the forms of the FY 2023 Performance Share Units Agreement - TSR, the FY 2023 Performance Share Units Agreement (NFE), the FY
2023 Restricted Stock Units Agreement, and the FY 2023 Performance-based Restricted Stock Units Agreement (together, the “Award Agreements”), are qualified in their entirety by the terms and provisions of the Award Agreements, which are attached
hereto as Exhibit 10.1, Exhibit 10.2, Exhibit 10.3 and Exhibit 10.4, respectively, and are incorporated herein by reference.
| Item 7.01 |
Regulation FD Disclosure.
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Earnings Presentation
The Company will deliver a presentation via live public webcast on November 17, 2022, at 10:00 a.m. ET. The slides to be used for the presentation are
furnished herewith as Exhibit 99.2 and are incorporated by reference into Item 7.01 of this Current Report on Form 8-K.
The information in Item 7.01 of this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as
amended.
| Item 9.01. |
Financial Statements and Exhibits
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Exhibits.
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Exhibit Number
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Exhibit
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FY 2023 Performance Share Units Agreement - TSR
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FY 2023 Performance Share Units Agreement (NFE)
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FY 2023 Restricted Stock Units Agreement
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FY 2023 Performance-based Restricted Stock Units Agreement
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Earnings Release dated November 17, 2022 (furnished, not filed)
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Presentation dated November 17, 2022 (furnished, not filed)
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Cover page in Inline XBRL format
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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NEW JERSEY RESOURCES CORPORATION
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Date: November 17, 2022
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By:
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/s/ Roberto F. Bel
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Roberto F. Bel
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Senior Vice President and Chief Financial Officer
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Exhibit 10.1
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance Share Units Agreement – (TSR)
This Performance Share Units Agreement (the “Agreement”), which includes the attached “Terms and Conditions of Performance Share Units” (the “Terms
and Conditions”) and the attached Exhibit A captioned “Performance Goal and Earning of Performance Share Units”, confirms the grant on November __, 2022 (the “Grant Date”) by NEW JERSEY RESOURCES CORPORATION, a New Jersey corporation (the “Company”),
to _____________ (“Employee”), under Sections 6(e), 6(i) and 7 of the 2017 Stock Award and Incentive Plan (the “Plan”), of Performance Share Units (the “Performance Share
Units”), including rights to Dividend Equivalents as specified herein, as follows:
Target Number Granted: _______ Performance Share Units (“Target Number”)
How Performance Share Units are Earned
and Vest: The Performance Share Units, if not previously forfeited, (i) will be earned, if and to the extent that the Performance Goal defined on Exhibit A to this Agreement is achieved, with the corresponding
number of Performance Share Units earned (ranging from 0% to 150% of the Target Number) as specified on Exhibit A, on the date set forth on Exhibit A (the “Earning Date”) and (ii) will vest as to the number of Performance Share Units earned if
Employee remains employed by the Company or a Subsidiary from the Grant Date through the Earning Date (the “Stated Vesting Date”). To the extent vested, all earned Performance Share Units shall be settled within 60 days after the Stated Vesting
Date. In addition, if not previously forfeited or payable, upon a Change in Control prior to the Stated Vesting Date, the Performance Share Units (i) will be earned in an amount equal to (A) the Target Number of the Performance Share Units if the
Change in Control occurs within the first 12 months of the 36-month earning period specified on Exhibit A or (B) the number of Performance Share Units that would have been earned based upon the actual level of achievement if the performance period
had ended at the date of the Change in Control if the Change in Control occurs within the last 24 months of the 36-month earning period specified on Exhibit A and (ii) will (A) immediately vest on the Change in Control with respect to such earned
Performance Share Units and will be settled within 60 days thereafter, if Employee remains employed by the Company or a Subsidiary from the Grant Date through the Change in Control and no provision is made for the continuance, assumption or
substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control, or (B) vest on the Stated Vesting Date with respect to such earned Performance Share Units and will be settled within 60 days
thereafter, if Employee remains employed by the Company or a Subsidiary from the Grant Date through the Stated Vesting Date and provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its
successor in connection with the Change in Control. In addition, if not previously forfeited or payable, the Performance Share Units will become vested upon the occurrence of certain events relating to Employee’s Termination of Employment to the
extent provided in Section 4 of the attached Terms and Conditions, and such vested Performance Share Units will continue to be subject to the Performance Goal and will be eligible to be earned if and to the extent that the Performance Goal is
achieved or there is a Change in Control prior to the Stated Vesting Date and settled in accordance with Section 6(a) hereof. The terms “vest” and “vesting” mean that the Performance Share Units have become non-forfeitable in relation to
Employee’s employment but may continue to be subject to a substantial risk of forfeiture based on the Performance Goal to the extent provided in Section 4 of the attached Terms and Conditions. If the Performance Goal is not met (or not fully met),
and no Change in Control occurs within the first 12 months of the 36-month earning period specified on Exhibit A, the Performance Share Units (or the unearned portion of the Performance Share Units) will be immediately forfeited (whether vested or
not). If Employee has a Termination of Employment prior to the Stated Vesting Date and the Performance Share Units are not otherwise vested by that date, the Performance Share Units will be immediately forfeited except as otherwise provided in
Section 4 of the attached Terms and Conditions. Forfeited Performance Share Units cease to be outstanding and in no event will thereafter result in any delivery of shares of Stock to Employee.
Performance Goal and Earning Date: The Performance Goal and Earning Date, and the number of Performance Share Units earned for specified levels of performance at the Earning Date, shall be as specified in Exhibit A hereto.
Settlement: Performance Share Units that are to be settled hereunder, including Performance Share Units credited as a result of Dividend Equivalents, will be settled by delivery of one share of Stock, for each Performance Share Unit being settled.
Settlement shall occur at the time specified above and in Section 6(a) of the attached Terms and Conditions.
Further Conditions to Settlement: Notwithstanding any other provision of this Agreement, except as otherwise set forth below, the Company’s obligation to settle the Performance Share Units and Employee’s right to distribution of the Performance Share Units
will be forfeited immediately upon the occurrence of any one or more of the following events (defined terms are attached hereto as Exhibit B):
(a) Competitive Employment. In the event that Employee, prior to full settlement of the Performance Share Units and within the Restricted Territory, directly or indirectly, whether
on Employee’s own behalf or on behalf of any other person or entity, performs services of the type which are the same as or similar to those conducted, authorized, offered or provided by Employee to the Company within the last 24 months, and
which support business activities which compete with the Business of the Company.
(b) Recruitment of Company Employees and Contractors. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on
Employee’s own behalf or on behalf of any other person or entity, solicits or induces any employee or independent contractor of the Company with whom Employee had Material Contact to terminate or lessen such employment or contract with the
Company.
(c) Solicitation of Company Customers. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on Employee’s own behalf
or on behalf of any other person or entity, solicits any actual or prospective customers of the Company with whom Employee had Material Contact for the purpose of selling any products or services which compete with the Business of the Company.
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(d) Solicitation of Company Vendors. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on Employee’s own behalf or
on behalf of any other person or entity, solicits any actual or prospective vendor of the Company with whom Employee had Material Contact for the purpose of purchasing products or services to support business activities which compete with the
Business of the Company.
(e) Breach of Confidentiality. In the event that Employee, at any time prior to full settlement of the Performance Share Units, directly or indirectly, divulges or makes use of any
Confidential Information or Trade Secrets of the Company other than in the performance of Employee’s duties for the Company. This provision does not limit the remedies available to the Company under common or statutory law as to trade secrets or
other forms of confidential information, which may impose longer duties of non-disclosure and provide for injunctive relief and damages. Notwithstanding anything herein to the contrary, nothing herein is intended to or will be used in any way to
prevent Employee from providing truthful testimony under oath in a judicial or administrative proceeding or to limit Employee’s right to communicate with a government agency, as provided for, protected under or warranted by applicable law. The
Employee further understands nothing herein limits the Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the
Securities and Exchange Commission, or any other federal, state or local government agency or commission (‘Government Agencies”). Nothing herein limits the Employee’s ability to communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by the Government Agency, including providing documents or information without notice to the Company. This Agreement does not limit the Employee’s right to receive an award for information
provided to any Government Agency. Notwithstanding anything herein to the contrary, the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that (i) is made in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or investigating a suspected violation of law or (ii) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if the Employee files a lawsuit for retaliation for reporting a suspected violation of law, the Employee may disclose the Trade Secret to his or her attorney
and use the Trade Secret information in the court proceeding, as long as the Employee files any document containing the Trade Secret under seal and does not disclose the Trade Secret, except pursuant to court order.
(f) Return of Property and Information. In the event that prior to full settlement of the Performance Share Units Employee fails to return all of the Company’s property and
information (whether confidential or not) within Employee’s possession or control within seven (7) calendar days following the termination or resignation of Employee from employment with the Company. Such property and information includes, but
is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information provided by the Company to Employee or which Employee has developed or collected in the scope of Employee’s employment with the
Company, as well as all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers. Upon request by the
Company, Employee shall certify in writing that Employee has complied with this provision, and has permanently deleted all Company information from any computers or other electronic storage devices or media owned by Employee. Employee may only
retain information relating to the Employee’s benefit plans and compensation to the extent needed to prepare Employee’s tax returns.
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(g) Disparagement. In the event that prior to full settlement of the Performance Share Units Employee makes any statements, either verbally or in writing, that are disparaging with
regard to the Company or any of its subsidiaries or their respective executives and Board members.
(h) Failure to Provide Information. In the event that prior to full settlement of the Performance Share Units Employee fails to promptly and fully respond to requests for
information from the Company regarding Employee’s compliance with any of the foregoing conditions.
If it is determined by the Leadership Development and Compensation Committee of the Company’s Board of Directors, in its sole discretion, that any
of the foregoing events have occurred prior to full settlement of the Performance Share Units, any unpaid portion of the Performance Share Units will be forfeited without any compensation therefor, provided, however, that none of the foregoing
conditions shall restrict any Employee who is a lawyer from practicing law. To the extent any such condition would restrict any Employee who is a lawyer from practicing law or would penalize the Employee for practicing law, such condition shall not
be effective and the Leadership Development and Compensation Committee may not forfeit any of the Performance Share Units on account therefor.
The Performance Share Units are subject to the terms and conditions of the Plan and this Agreement, including the Terms and Conditions of Performance
Share Units attached hereto and deemed a part hereof. The number of Performance Share Units and the kind of shares deliverable in settlement and other terms and conditions of the Performance Share Units are subject to adjustment in accordance with
Section 5 of the attached Terms and Conditions and Section 11(c) of the Plan.
Employee acknowledges and agrees that (i) the Performance Share Units are nontransferable, except as provided in Section 3 of the attached Terms and
Conditions and Section 11(b) of the Plan, (ii) the Performance Share Units are subject to forfeiture in the event of Employee’s Termination of Employment in certain circumstances prior to vesting, as specified in Section 4 of the attached Terms and
Conditions, (iii) the foregoing conditions shall apply to the Performance Share Units prior to settlement and (iv) sales of shares of Stock delivered upon settlement of the Performance Share Units will be subject to any Company policy regulating
trading by employees.
Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.
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IN WITNESS WHEREOF, NEW JERSEY RESOURCES CORPORATION has caused this Agreement to be executed by its officer thereunto duly authorized.
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NEW JERSEY RESOURCES CORPORATION
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By:
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[NAME]
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[Title]
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EMPLOYEE
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[NAME]
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[Title]
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TERMS AND CONDITIONS OF PERFORMANCE SHARE UNITS
The following Terms and Conditions apply to the Performance Share Units granted to Employee by NEW JERSEY RESOURCES CORPORATION (the “Company”) and
Performance Share Units resulting from Dividend Equivalents (as defined below), if any, as specified in the Performance Share Units Agreement (of which these Terms and Conditions form a part). Certain terms of the Performance Share Units, including
the number of Performance Share Units granted, vesting date(s) and settlement date, are set forth on the cover page hereto and Exhibit A, which are an integral part of this Agreement.
1. General. The Performance Share Units are granted to Employee under the Company’s 2017 Stock Award and Incentive Plan (the “Plan”), which has been previously delivered to Employee and/or is
available upon request to the Corporate Benefits Department. All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein. Capitalized terms used in this Agreement but not defined herein shall have
the same meanings as in the Plan. If there is any conflict between the provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern. By accepting the grant of the Performance Share Stock Units, Employee
agrees to be bound by all of the terms and provisions of the Plan (as presently in effect or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations relating to the Plan and grants
thereunder of the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) made from time to time.
2. Account for Employee. The Company shall maintain a bookkeeping account for Employee (the “Account”) reflecting the
number of Performance Share Units then credited to Employee hereunder as a result of such grant of Performance Share Units and any crediting of additional Performance Share Units to Employee pursuant to dividends paid on shares of Stock under
Section 5 hereof (“Dividend Equivalents”).
3. Nontransferability. Until Performance Share Units are settled by delivery of shares of Stock in accordance with the terms of this Agreement, Employee may not transfer Performance Share
Units or any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under Section 11(b) of the Plan. This
restriction on transfer precludes any sale, assignment, pledge or other encumbrance or disposition of the Performance Share Units (except for forfeitures to the Company).
4. Termination of Employment. The following provisions will govern the earning, vesting and forfeiture of the Performance Share Units that are outstanding at the time of Employee’s Termination
of Employment (as defined below) (i) by the Company without Cause (as defined below) or by the Employee for Good Reason (as defined below), in either case during the CIC Protection Period (as defined below), or (ii) due to death, Disability (as
defined below) or Retirement (as defined below), unless otherwise determined by the Committee (subject to Section 8(e) hereof):
(a) Termination by the Company or by the Employee in Certain Events. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date, by the Company without Cause within the CIC
Protection Period and other than for Disability or Retirement, or by Employee for Good Reason within the CIC Protection Period, the outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion (as defined
below) of the Performance Share Units, to the extent earned previously (upon a Change in Control where provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection
with the Change in Control or otherwise), to the extent not vested previously, and such earned and vested Performance Share Units will be settled in accordance with Section 6(a) hereof. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date, (i) by the Company for Cause and other than for Disability or Retirement, (ii) by the Company for any reason other than Disability or
Retirement prior to or after the CIC Protection Period, (iii) by Employee (other than for Good Reason within the CIC Protection Period or upon Retirement), or (iv) by Employee (other than upon Retirement) before or after the CIC Protection
Period, the portion of the then-outstanding Performance Share Units not earned and vested at the date of Employee’s Termination of Employment will be forfeited.
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(b) Death, Disability or Retirement. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date and before a Change in Control, due to Employee’s death, Disability or Retirement, the
outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion (as defined below) of the Performance Share Units, to the extent not earned previously, that may become earned on the Earning Date, to the extent
not previously vested, and such vested Performance Share Units will continue to be subject to the Performance Goal and will be eligible to be earned if and to the extent that the Performance Goal is achieved or there is a Change in Control prior
to the Stated Vesting Date and settled in accordance with Section 6(a) hereof. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date and on or after a Change in Control, due to Employee’s death, Disability or
Retirement, the outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion of the Performance Share Units, to the extent earned previously (upon a Change in Control where provision is made for the
continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control or otherwise), to the extent not vested previously, and such earned and vested Performance Share Units
will be settled in accordance with Section 6(a) hereof. Any portion of the then-outstanding Performance Share Units not vested at or before the date of Employee's Termination of Employment will be forfeited.
(c) Certain Definitions. The following definitions apply for purposes of this Agreement:
(i) “Cause” has the same definition as under
any employment or similar agreement between the Company and Employee or, if no such agreement exists or if such agreement does not contain any such definition, Cause means (i) Employee’s conviction of a felony or the entering by Employee of a
plea of nolo contendere to a felony charge, (ii) Employee’s gross neglect, willful malfeasance or willful gross misconduct in
connection with his or her employment which has had a significant adverse effect on the business of the Company and its subsidiaries, unless Employee reasonably believed in good faith that such act or non-act was in or not opposed to the best
interest of the Company, or (iii) repeated material violations by Employee of the duties and obligations of Employee’s position with the Company which have continued after written notice thereof from the Company, which violations are demonstrably
willful and deliberate on Employee’s part and which result in material damage to the Company’s business or reputation.
(ii) “CIC Protection Period” means the
two-year period beginning on the date of a Change in Control and ending on the day before the second annual anniversary of the date of the Change in Control.
(iii) “Disability” means Employee has been
incapable of substantially fulfilling the positions, duties, responsibilities and obligations of his employment because of physical, mental or emotional incapacity resulting from injury, sickness or disease for a period of at least six
consecutive months. The Company and Employee shall agree on the identity of a physician to resolve any question as to Employee’s disability. If the Company and Employee cannot agree on the physician to make such determination, then the Company
and Employee shall each select a physician and those physicians shall jointly select a third physician, who shall make the determination. The determination of any such physician shall be final and conclusive for all purposes of this Agreement.
Only the Company can initiate a Termination of Employment due to Disability.
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(iv) “Good Reason” has the same definition as
under any employment or similar agreement between the Company and Employee; but, if no such agreement exists or if any such agreement does not contain or reference any such definition, Good Reason shall not apply to the Employee for purposes of
this Agreement.
(v) “Pro Rata Portion” means a fraction, the
numerator of which is the number of days from the first day of the 36-month earning period specified on Exhibit A to the date of Employee’s Termination of Employment due to Employee’s death, Disability or Retirement, or by the Company without
Cause within the CIC Protection Period and other than for Disability or Retirement or by Employee for Good Reason within the CIC Protection Period, and the denominator of which is the number of days from the first day of such 36-month earning
period to the Earning Date.
(vi) “Retirement” means the Employee has
attained age 65, or age 55 with 20 or more years of service.
(vii) “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the Code (“Section 424(f) Corporation”) and any partnership, limited liability company or joint venture in which either the Company or Section 424(f) Corporation is at least a 50%
equity participant.
(viii) “Termination of Employment” and
“Termination” means the earliest time at which Employee is not employed by the Company or a Subsidiary of the Company.
(d) Termination by the Company for Cause. In the event of Employee’s Termination of Employment by the Company for Cause, the portion of the then-outstanding Performance Share Units not earned and vested prior to
such time will be forfeited immediately upon notice to Employee that the Company is terminating the Employee’s employment for Cause.
5. Dividend Equivalents and Adjustments.
(a) Dividend Equivalents. Dividend Equivalents will be credited on Performance Share Units (other than Performance Share Units that, at the relevant record date, previously have been settled or forfeited) and
deemed converted into additional Performance Share Units. Dividend Equivalents will be credited as follows, except that the Company may vary the manner of crediting (for example, by crediting cash dividend equivalents rather than additional
Performance Share Units) for administrative convenience:
(i) Cash Dividends. If the Company declares and pays a dividend or distribution on shares of Stock in the form of cash, then additional Performance Share Units shall be credited to Employee’s Account as of the
payment date of such cash dividend or distribution (or settled as of the payment date of such cash dividend or distribution if the Performance Share Units are to be settled before the payment date) equal to the number of Performance Share Units
credited to the Account as of the relevant record date multiplied by the amount of cash paid per share of Stock in such dividend or distribution divided by the Fair Market Value of a share of Stock at the payment date for such dividend or
distribution.
(ii) Non-Share Dividends. If the Company declares and pays a dividend or distribution on shares of Stock in the form of property other than shares of Stock, then a number of additional Performance Share Units
shall be credited to Employee’s Account as of the payment date of such cash dividend or distribution (or settled as of the payment date of such cash dividend or distribution if the Performance Share Units are to be settled before the payment
date) equal to the number of Performance Share Units credited to the Account as of the record date for such dividend or distribution multiplied by the fair market value of such property actually paid as a dividend or distribution on each
outstanding share of Stock at such payment date, divided by the Fair Market Value of a share of Stock at such payment date for such dividend or distribution.
8
(iii) Share Dividends and Splits. If the Company declares and pays a dividend or distribution on shares of Stock in the form of additional shares of Stock, or there occurs a forward split of shares of Stock, then a
number of additional Performance Share Units shall be credited to Employee’s Account as of the payment date for such dividend or distribution or forward split (or settled as of the payment date for such dividend or distribution or forward split
if the Performance Share Units are to be settled before the payment date) equal to the number of Performance Share Units credited to the Account as of the record date for such dividend or distribution or split multiplied by the number of
additional shares of Stock actually paid as a dividend or distribution or issued in such split in respect of each outstanding share of Stock.
(b) Adjustments. The number of Performance Share Units credited to Employee’s Account shall be appropriately adjusted in order to prevent dilution or enlargement of Employee’s rights with respect to Performance
Share Units or to reflect any changes in the number of outstanding shares of Stock resulting from any event referred to in Section 11(c) of the Plan, taking into account any Performance Share Units credited to Employee in connection with such
event under Section 5(a) hereof. In furtherance of the foregoing, in the event of an equity restructuring, as defined in ASC Topic 718, which affects the shares of Stock, Employee shall have a legal right to an adjustment to Employee’s
Performance Share Units which shall preserve without enlarging the value of the Performance Share Units, with the manner of such adjustment to be determined by the Committee in its discretion. All adjustments will be made in a manner as to
maintain the Performance Share Unit’s exemption from Code Section 409A or, to the extent Code Section 409A applies, to comply with Code Section 409A. Any adjustments shall be subject to the requirements and restrictions set forth in Section
11(c) of the Plan.
(c) Risk of Forfeiture and Settlement of Performance Share Units Resulting from Dividend Equivalents and Adjustments. Performance Share Units which directly or indirectly result from Dividend Equivalents on or
adjustments to Performance Share Units granted hereunder shall be subject to the same risk of forfeiture and other conditions as apply to the granted Performance Share Units with respect to which the Dividend Equivalents or adjustments related
and will be settled at the same time as such related Performance Share Units (unless the Performance Share Units are to be settled prior to the payment date of the Dividend Equivalents or the date of such adjustments, in which case the Dividend
Equivalents or adjustments will be settled at the payment date of the dividends or the date of such adjustments (and in no event later than 60 days after the Performance Share Units otherwise are to be settled)).
6. Settlement and Deferral.
(a) Settlement Date. Except as otherwise set forth above under “Further Conditions to Settlement,” Performance Share Units granted hereunder that have become earned and vested, together with Performance Share
Units credited as a result of Dividend Equivalents with respect thereto, to the extent earned and vested, shall be settled by delivery of one share of Stock for each Performance Share Unit being settled at the time specified herein. Settlement
of earned and vested Performance Share Units granted hereunder shall occur at the Earning Date (with shares to be delivered within 60 days after the Earning Date); provided, however, that settlement of earned and vested Performance Share Units
shall occur within 60 days after a Change in Control if no provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control; and provided
further, that settlement shall be deferred if so elected by Employee in accordance with Section 6(b) hereof subject to Section 6(c) hereof. Settlement of Performance Share Units which directly or indirectly result from Dividend Equivalents on
Performance Share Units granted hereunder generally shall occur at the time of settlement of the related Performance Share Units except as otherwise described above.
9
(b) Elective Deferral. The Committee may determine to permit Employee to elect to defer settlement (or re-defer) if such election would be permissible under Section 11(k) of the Plan and Code Section 409A. In
addition to any applicable requirements under Code Section 409A, any such deferral election shall be made only while Employee remains employed and at a time permitted under Code Section 409A. The form under which an election is made shall set
forth the time and form of payment of such amount deferred. Any amount deferred shall be subject to a 6 month delay upon payment if required under Section 11(k)(i)(F) of the Plan. Any elective deferral will be subject to such additional terms
and conditions as the Senior Vice President, Human Resources, or the officer designated by the Company as responsible for administration of the Agreement, may reasonably impose.
(c) Compliance with Code Section 409A. Other provisions of this Agreement notwithstanding, because the Performance Share Units will constitute a "deferral of compensation" under Section 409A of the Code (“Code
Section 409A”) as presently in effect or hereafter amended (i.e., the Performance Share Units are not excluded or exempted under Code Section 409A or a regulation or other official governmental guidance thereunder; Note: an elective deferral
under Section 6(b) would cause the Performance Share Units, if not already, to be a deferral of compensation subject to Code Section 409A after the deferral), such Performance Share Units will be considered a 409A Award under the Plan and, shall
be subject to the additional requirements set forth in Section 11(k) of the Plan including without limitation that (i) Termination of Employment shall be construed consistent with the meaning of a Separation from Service and (ii) a Change in
Control under the Agreement shall be construed consistent with the meaning of a 409A Ownership/Control Change.
7. Employee Representations and Warranties Upon Settlement. As a condition to the settlement of the Performance Share Units, the Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation and (ii) to
execute a release from claims against the Company arising at or before the date of the release, in such form as may be specified by the Company, and not revoke such release prior the expiration of any applicable revocation period, all within 60
days after Termination of Employment.
8. Miscellaneous.
(a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties. This Agreement constitutes the entire agreement between the
parties with respect to the Performance Share Units, and supersedes any prior agreements or documents with respect to the Performance Share Units. No amendment or alteration of this Agreement which may impose any additional obligation upon the
Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which may materially impair the rights of Employee with respect to
the Performance Share Units shall be valid unless expressed in a written instrument executed by Employee.
(b) No Promise of Employment. The Performance Share Units and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue
as an officer or employee of the Company for any period of time, or at any particular rate of compensation.
(c) Governing Law. The validity, construction, and effect of this Agreement shall be determined in accordance with the laws (including those governing contracts) of the state of New Jersey, without giving effect
to principles of conflicts of laws, and applicable federal law.
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(d) Fractional Performance Share Units and Shares. The number of Performance Share Units credited to Employee’s Account shall include fractional Performance Share Units calculated to at least three decimal
places, unless otherwise determined by the Committee. Unless settlement is effected through a third-party broker or agent that can accommodate fractional shares (without requiring issuance of a fractional Share by the Company), upon settlement of
the Performance Share Units, the Committee, in its sole discretion, may either (i) round the fractional share to be delivered up to a whole Share or (ii) provide that Employee shall be paid, in cash, an amount equal to the value of any fractional
Share that would have otherwise been deliverable in settlement of such Performance Share Units.
(e) Mandatory Tax Withholding. Unless otherwise determined by the Committee, or Employee has elected at least 90 days prior to payout to satisfy the tax obligations in cash by other means, at the time of vesting
and/or settlement the Company will withhold first from any cash payable and then from any shares of Stock deliverable in settlement of the Performance Share Units, in accordance with Section 11(d)(i) of the Plan, the number of whole shares of
Stock having a value nearest to, but not exceeding, the minimum amount of income and employment taxes required to be withheld under applicable laws and regulations (only with respect to the minimum amount of Shares necessary to satisfy statutory
withholding requirements, unless withholding of any additional amount of Shares will not result in additional accounting expense to the Company and is permitted by the Committee), and pay the amount of such withholding taxes in cash to the
appropriate taxing authorities. Employee will be responsible for any withholding taxes not satisfied by means of such mandatory withholding and for all taxes in excess of such minimum withholding taxes that may be due upon vesting or settlement
of Performance Share Units.
(f) Statements. An individual statement of each Employee’s Account will be issued to Employee at such times as may be determined by the Company. Such a statement shall reflect the number of Performance Share
Units credited to Employee’s Account, transactions therein during the period covered by the statement, and other information deemed relevant by the Company. Such a statement may be combined with or include information regarding other plans and
compensatory arrangements. Employee’s statements shall be deemed a part of this Agreement, and shall evidence the Company’s obligations in respect of Performance Share Units, including the number of Performance Share Units credited as a result of
Dividend Equivalents (if any). Any statement containing an error shall not, however, represent a binding obligation to the extent of such error, notwithstanding the inclusion of such statement as part of this Agreement.
(g) Unfunded Obligations. The grant of the Performance Share Units and any provision for distribution in settlement of Employee’s Account hereunder shall be by means of bookkeeping entries on the books of the
Company and shall not create in Employee any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for Employee. With respect to Employee’s entitlement to any distribution
hereunder, Employee shall be a general creditor of the Company.
(h) Notices. Any notice to be given the Company under this Agreement shall be addressed to the Company at its principal executive offices, in care of the Senior Vice President, Human Resources, or the officer
designated by the Company as responsible for administration of the Agreement, and any notice to Employee shall be addressed to Employee at Employee’s address as then appearing in the records of the Company.
(i) Shareholder Rights. Employee and any Beneficiary shall not have any rights with respect to shares of Stock (including voting rights) covered by this Agreement prior to the settlement and distribution of the
shares of Stock except as otherwise specified herein. Specifically, Performance Share Units represent a contractual right to receive shares of Stock in the future, subject to the terms and conditions of this Agreement and the Plan, and do not
represent ownership of shares of Stock at any time before the settlement of this Award and actual issuance of the shares of Stock.
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Exhibit A
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance Goal and Earning of Performance Share Units
The number of Performance Share Units earned by Participant shall be determined as of September 30, 2025 (the “Earning Date”), based on the Company’s
“Total Shareholder Return Performance” in the 36-month period ending at the Earning Date as compared against an established group of comparable companies (the “Comparison Group”) selected by the Committee and shown below. The number of Performance
Share Units earned will be determined based on the following grid:
|
Relative Total Shareholder Return
|
|
|
Company Relative Total
Shareholder Return Performance
— Percentile Achieved
|
Performance Share Units Earned as
Percentage of
Target Performance Share Units
|
|
Less than 25th
|
0%
|
|
25th (threshold)
|
40%
|
|
55th (target)
|
100%
|
|
80th and above (maximum)
|
150%
|
Total Shareholder Return (or “TSR”), expressed as a percentage, shall be computed as follows:
TSR = (Priceend − Pricebegin + Dividends) / Pricebegin
Pricebegin = the average of the closing share price of the Stock over the 20 trading days beginning October 1, 2022.
Priceend = the average of the closing share price of the Stock over the 20 trading days ending September 30, 2025.
Dividends = dividends or other distributions paid to shareholders with respect to the Stock with ex-dividend dates falling within the 36-month period
between October 1, 2022 and September 30, 2025 (with such dividends and other distributions deemed reinvested in shares of Stock as of the ex-dividend date based on the Price of the Stock on the ex-dividend date where not paid in shares of Stock).
Price = the closing price of
the Stock as of the applicable date.
Upon achievement of Total Shareholder Return at a percentile between any two specified percentiles, the Performance Share Units earned will be
mathematically interpolated on a straight-line basis.
Determinations of the Committee regarding Total Shareholder Return performance, such performance as a percentile within the Comparison Group, the
resulting Performance Share Units earned and vested and related matters will be final and binding on Participant.
Companies shall be removed from the Comparison Group if they undergo a Specified Corporate Change. A company that is removed from the Comparison Group
before the Earning Date will not be included at all in the computation of Total Shareholder Return. A company in the Comparison Group will be deemed to have undergone a “Specified Corporate Change” if it:
12
| 1. |
ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system, unless such cessation of such listing is due to a low stock price or low trading volume;
or
|
| 2. |
has gone private; or
|
| 3. |
has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or
|
| 4. |
has been acquired by another company (whether by a peer company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets.
|
The Company shall rely on press releases, public filings, website postings, and other reasonably reliable information available regarding a peer
company in making a determination that a Specified Corporate Change has occurred.
The Committee shall determine a reasonable methodology for dealing with companies in the Comparison Group that cease to be engaged in a business
comparable to that of the Company. Additionally, TSR will be -100% if a company: (i) files for bankruptcy, reorganization, or liquidation under any chapter of the U.S. Bankruptcy Code; (ii) is the subject of an involuntary bankruptcy proceeding that
is not dismissed within 30 days; (iii) is the subject of a stockholder approved plan of liquidation or dissolution; or (iv) ceases to conduct substantial business operations. Total Shareholder Return shall be calculated in a manner that reflects the
economic return to shareholders, such that any equity restructuring of the Company or any company in the Comparison Group shall not have the effect of enlarging or reducing the rights of Employee except to the extent of its effects on the real
economic return of a shareholder.
Determinations of the Committee regarding Total Shareholder Return performance, in the case of a Change in Control or Employee’s Termination due to death
prior to the Earning Date, shall be made as if the performance period had ended at the date of the Change in Control or Termination of Employment due to death, as applicable.
13
The Comparison Group
CMS Energy Corp.
CenterPoint Energy, Inc.
UGI Corporation
NiSource Inc.
Atmos Energy Corporation
National Fuel Gas Company
Southwest Gas Corporation
ONE Gas, Inc.
Black Hills Corporation
Spire Inc.
Northwestern Corporation
Avista Corp.
South Jersey Industries, Inc.
Northwest Natural Gas Company
Chesapeake Utilities Corporation
Unitil Corporation
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Exhibit B
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Definitions Under Further Conditions to Settlement
| a. |
“Business of the Company” means the following areas of its business which are selected below, which Employee acknowledges are areas of the Company’s business in which Employee has responsibilities:
|
(check as applicable)
| ___ |
Natural Gas Distribution: Consists of New Jersey Natural Gas Company
(“NJNG”), a natural gas utility company that provides regulated retail natural gas service to residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets, and
also includes investments in renewable natural gas and green hydrogen technologies.
|
| ___ |
Energy Services: Maintains and transacts around a portfolio of physical
assets consisting of natural gas storage and transportation contracts and also provides wholesale energy management services to other energy companies and natural gas producers in market areas including states from the Gulf Coast and
Mid-continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
|
| ___ |
Clean Energy Ventures: Investor, owner, and operator in the renewable
energy sector, including, but not limited to, investments in residential and commercial rooftop and ground mount solar systems.
|
| ___ |
Storage and Transportation: Includes investments in
natural gas transportation and storage assets and is comprised of the following: Steckman Ridge, which is a partnership that owns and operates a 17.7 Bcf natural gas storage facility, with up to 12 Bcf working capacity, in western
Pennsylvania that is 50 percent owned by a Company Subsidiary; Leaf River Energy Center, a natural gas storage facility located in southeastern Mississippi with a combined working natural gas storage capacity of 32.2 million dekatherms; and
Adelphia Gateway, an 84-mile pipeline in southeastern Pennsylvania..
|
| ___ |
Home Services: Consists of NJR Home Services Company, which provides
Heating, Ventilating, and Air Conditioning (“HVAC”) service, sales and installation of appliances, as well as installation of solar equipment.
|
| b. |
“Confidential Information” means all valuable and/or proprietary information (in oral, written, electronic or other forms) belonging to or pertaining to the Company, its customers and vendors, that
is not generally known or publicly available, and which would be useful to competitors of the Company or otherwise damaging to the Company if disclosed. Confidential Information may include, but is not necessarily limited to: (i) the
identity of the Company’s customers or potential customers, their purchasing histories, and the terms or proposed terms upon which the Company offers or may offer its products and services to such customers, (ii) the identity of the Company’s
vendors or potential vendors, and the terms or proposed terms upon which the Company may purchase products and services from such vendors, (iii) technology used by the Company to provide its services, (iv) the terms and conditions upon which
the Company employs its employees and independent contractors, (v) marketing and/or business plans and strategies, (vi) financial reports and analyses regarding the revenues, expenses, profitability and operations of the Company, and (vii)
information provided to the Company by customers and other third parties under a duty to maintain the confidentiality of such information. Notwithstanding the foregoing, Confidential Information does not include information that: (i) has
been voluntarily disclosed to the public by Company or any Employer, except where such public disclosure has been made by Employee without authorization from Company or Employer; (ii) has been independently developed and disclosed by others,
or (iii) which has otherwise entered the public domain through lawful means. Confidential Information also does not include information related to any claim of sexual harassment or sexual assault and nothing herein restricts the disclosure of
such information. Nothing herein shall prohibit, prevent or restrict the Employee from reporting any allegations of unlawful conduct to federal, state or local officials or to an attorney retained by the Employee.
|
15
| c. |
“Material Contact” means contact in person, by telephone, or by paper or electronic correspondence, or the supervision of those who have such conduct, and which is done in furtherance of the business
interests of the company and within the last 36 months.
|
| d. |
“Restricted Territory” consists of the following areas, to the extent such areas have been identified as applicable to the definition of the “Business of the company” above:
|
Natural Gas Distribution: The State of New
Jersey and for those employees engaged in or supervising off system sales, the States of New Jersey, New York and Pennsylvania.
Energy Services: The Continental United
States and within a 100 mile radius of the Dawn Storage Hub in Canada.
Clean Energy Ventures: The States of New
Jersey, Connecticut, Rhode Island and New York.
Storage and Transportation: The States of New
Jersey, New York, Connecticut, Pennsylvania, Virginia, West Virginia, Mississippi, Alabama, Louisiana and Texas.
Home Services: The State of New Jersey.
| e. |
“Trade Secrets” means a trade secret of the Company as defined by applicable law
|
16
Exhibit 10.2
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance Share Units Agreement (NFE)
This Performance Share Units Agreement (the “Agreement”), which includes the attached “Terms and Conditions of Performance Share Units” (the “Terms
and Conditions”) and the attached Exhibit A captioned “Performance Goal and Earning of Performance Share Units”, confirms the grant on November __, 2022 (the “Grant Date”) by NEW JERSEY RESOURCES CORPORATION, a New Jersey corporation (the “Company”),
to _____________________ (“Employee”), under Sections 6(e), 6(i) and 7 of the 2017 Stock Award and Incentive Plan (the “Plan”), of Performance Share Units (the “Performance Share Units”), including rights to Dividend Equivalents as specified herein,
as follows:
Target Number Granted: ____ Performance Share Units (“Target Number”)
How Performance Share Units are Earned
and Vest: The Performance Share Units, if not previously forfeited, (i) will be earned, if and to the extent that the Performance Goal defined on Exhibit A to this Agreement is achieved, with the corresponding
number of Performance Share Units earned (ranging from 0% to 150% of the Target Number) as specified on Exhibit A, on the date set forth on Exhibit A (the “Earning Date”) and (ii) will vest as to the number of Performance Share Units earned if
Employee remains employed by the Company or a Subsidiary from the Grant Date through the Earning Date (the “Stated Vesting Date”). To the extent vested, all earned Performance Share Units shall be settled within 60 days after the Stated Vesting
Date. In addition, if not previously forfeited or payable, upon a Change in Control prior to the Stated Vesting Date, the Performance Share Units (i) will be earned in an amount equal to the Target Number of the Performance Share Units and (ii)
will (A) immediately vest on the Change in Control with respect to such earned Performance Share Units and will be settled within 60 days thereafter, if Employee remains employed by the Company or a Subsidiary from the Grant Date through the Change
in Control and no provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control, or (B) vest on the Stated Vesting Date with respect to such
earned Performance Share Units and will be settled within 60 days thereafter, if Employee remains employed by the Company or a Subsidiary from the Grant Date through the Stated Vesting Date and provision is made for the continuance, assumption or
substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control. In addition, if not previously forfeited or payable, the Performance Share Units will become vested upon the occurrence of
certain events relating to Employee's Termination of Employment to the extent provided in Section 4 of the attached Terms and Conditions, and such vested Performance Share Units will continue to be subject to the Performance Goal and will be
eligible to be earned if and to the extent that the Performance Goal is achieved or there is a Change in Control prior to the Stated Vesting Date and settled in accordance with Section 6(a) hereof. The terms “vest” and “vesting” mean that the
Performance Share Units have become non-forfeitable in relation to Employee’s employment but may continue to be subject to a substantial risk of forfeiture based on the Performance Goal to the extent provided in Section 4 of the attached Terms and
Conditions. If the Performance Goal is not met (or not fully met), and no Change in Control occurs prior to the Earning Date, the Performance Share Units (or the unearned portion of the Performance Share Units) will be immediately forfeited
(whether vested or not). If Employee has a Termination of Employment prior to the Stated Vesting Date and the Performance Share Units are not otherwise vested by that date, the Performance Share Units will be immediately forfeited except as
otherwise provided in Section 4 of the attached Terms and Conditions. Forfeited Performance Share Units cease to be outstanding and in no event will thereafter result in any delivery of shares of Stock to Employee.
1
Performance Goal and Earning Date: The Performance Goal and Earning Date, and the number of Performance Share Units earned for specified levels of performance at the Earning Date, shall be as specified in Exhibit A hereto.
Settlement: Performance Share Units that are to be settled hereunder, including Performance Share Units credited as a result of Dividend Equivalents, will be settled by delivery of one share of Stock, for each Performance Share Unit being settled.
Settlement shall occur at the time specified above and in Section 6(a) of the attached Terms and Conditions.
Further Conditions to Settlement: Notwithstanding any other provision of this Agreement, except as otherwise set forth below, the Company’s obligation to settle the Performance Share Units and Employee’s right to distribution of the Performance Share Units
will be forfeited immediately upon the occurrence of any one or more of the following events (defined terms are attached hereto as Exhibit B):
(a) Competitive Employment. In the event that Employee, prior to full settlement of the Performance Share Units and within the Restricted Territory, directly or indirectly, whether
on Employee’s own behalf or on behalf of any other person or entity, performs services of the type which are the same as or similar to those conducted, authorized, offered or provided by Employee to the Company within the last 24 months, and
which support business activities which compete with the Business of the Company.
(b) Recruitment of Company Employees and Contractors. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on
Employee’s own behalf or on behalf of any other person or entity, solicits or induces any employee or independent contractor of the Company with whom Employee had Material Contact to terminate or lessen such employment or contract with the
Company.
(c) Solicitation of Company Customers. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on Employee’s own behalf
or on behalf of any other person or entity, solicits any actual or prospective customers of the Company with whom Employee had Material Contact for the purpose of selling any products or services which compete with the Business of the Company.
(d) Solicitation of Company Vendors. In the event that Employee, prior to full settlement of the Performance Share Units, directly or indirectly, whether on Employee’s own behalf or
on behalf of any other person or entity, solicits any actual or prospective vendor of the Company with whom Employee had Material Contact for the purpose of purchasing products or services to support business activities which compete with the
Business of the Company.
2
(e) Breach of Confidentiality. In the event that Employee, at any time prior to full settlement of the Performance Share Units, directly or indirectly, divulges or makes use of any
Confidential Information or Trade Secrets of the Company other than in the performance of Employee’s duties for the Company. This provision does not limit the remedies available to the Company under common or statutory law as to trade secrets or
other forms of confidential information, which may impose longer duties of non-disclosure and provide for injunctive relief and damages. Notwithstanding anything herein to the contrary, nothing herein is intended to or will be used in any way to
prevent Employee from providing truthful testimony under oath in a judicial or administrative proceeding or to limit Employee’s right to communicate with a government agency, as provided for, protected under or warranted by applicable law. The
Employee further understands nothing herein limits the Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the
Securities and Exchange Commission, or any other federal, state or local government agency or commission (‘Government Agencies”). Nothing herein limits the Employee’s ability to communicate with any Government Agencies or otherwise participate
in any investigation or proceeding that may be conducted by the Government Agency, including providing documents or information without notice to the Company. This Agreement does not limit the Employee’s right to receive an award for information
provided to any Government Agency. Notwithstanding anything herein to the contrary, the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that (i) is made in
confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or investigating a suspected violation of law or (ii) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if the Employee files a lawsuit for retaliation for reporting a suspected violation of law, the Employee may disclose the Trade Secret to his or her attorney
and use the Trade Secret information in the court proceeding, as long as the Employee files any document containing the Trade Secret under seal and does not disclose the Trade Secret, except pursuant to court order.
(f) Return of Property and Information. In the event that prior to full settlement of the Performance Share Units Employee fails to return all of the Company’s property and
information (whether confidential or not) within Employee’s possession or control within seven (7) calendar days following the termination or resignation of Employee from employment with the Company. Such property and information includes, but
is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information provided by the Company to Employee or which Employee has developed or collected in the scope of Employee’s employment with the
Company, as well as all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers. Upon request by the
Company, Employee shall certify in writing that Employee has complied with this provision, and has permanently deleted all Company information from any computers or other electronic storage devices or media owned by Employee. Employee may only
retain information relating to the Employee’s benefit plans and compensation to the extent needed to prepare Employee’s tax returns.
(g) Disparagement. In the event that prior to full settlement of the Performance Share Units Employee makes any statements, either verbally or in writing, that are disparaging with
regard to the Company or any of its subsidiaries or their respective executives and Board members.
3
(h) Failure to Provide Information. In the event that prior to full settlement of the Performance Share Units Employee fails to promptly and fully respond to requests for
information from the Company regarding Employee’s compliance with any of the foregoing conditions.
If it is determined by the Leadership Development and Compensation Committee of the Company’s Board of Directors, in its sole discretion, that any
of the foregoing events have occurred prior to full settlement of the Performance Share Units, any unpaid portion of the Performance Share Units will be forfeited without any compensation therefor, provided, however, that none of the foregoing
conditions shall restrict any Employee who is a lawyer from practicing law. To the extent any such condition would restrict any Employee who is a lawyer from practicing law or would penalize the Employee for practicing law, such condition shall not
be effective and the Leadership Development and Compensation Committee may not forfeit any of the Performance Share Units on account therefor.
The Performance Share Units are subject to the terms and conditions of the Plan and this Agreement, including the Terms and Conditions of Performance
Share Units attached hereto and deemed a part hereof. The number of Performance Share Units and the kind of shares deliverable in settlement and other terms and conditions of the Performance Share Units are subject to adjustment in accordance with
Section 5 of the attached Terms and Conditions and Section 11(c) of the Plan.
Employee acknowledges and agrees that (i) the Performance Share Units are nontransferable, except as provided in Section 3 of the attached Terms and
Conditions and Section 11(b) of the Plan, (ii) the Performance Share Units are subject to forfeiture in the event of Employee’s Termination of Employment in certain circumstances prior to vesting, as specified in Section 4 of the attached Terms and
Conditions, (iii) the foregoing conditions shall apply to the Performance Share Units prior to settlement and (iv) sales of shares of Stock delivered upon settlement of the Performance Share Units will be subject to any Company policy regulating
trading by employees.
Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.
IN WITNESS WHEREOF, NEW JERSEY RESOURCES CORPORATION has caused this Agreement to be executed by its officer thereunto duly authorized.
4
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NEW JERSEY RESOURCES CORPORATION
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By:
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[NAME]
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[Title]
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Officer’s Name
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[NAME]
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[Title]
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5
TERMS AND CONDITIONS OF PERFORMANCE SHARE UNITS
The following Terms and Conditions apply to the Performance Share Units granted to Employee by NEW JERSEY RESOURCES CORPORATION (the “Company”) and
Performance Share Units resulting from Dividend Equivalents (as defined below), if any, as specified in the Performance Share Units Agreement (of which these Terms and Conditions form a part). Certain terms of the Performance Share Units, including
the number of Performance Share Units granted, vesting date(s) and settlement date, are set forth on the cover page hereto and Exhibit A, which are an integral part of this Agreement.
1. General. The Performance Share Units are granted to Employee under the Company’s 2017 Stock Award and Incentive Plan (the “Plan”), which has been previously delivered to Employee and/or is
available upon request to the Human Resources Department. All of the applicable terms, conditions and other provisions of the Plan are incorporated by reference herein. Capitalized terms used in this Agreement but not defined herein shall have
the same meanings as in the Plan. If there is any conflict between the provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern. By accepting the grant of the Performance Share Units, Employee agrees to
be bound by all of the terms and provisions of the Plan (as presently in effect or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations relating to the Plan and grants thereunder
of the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) made from time to time.
2. Account for Employee. The Company shall maintain a bookkeeping account for Employee (the “Account”) reflecting the
number of Performance Share Units then credited to Employee hereunder as a result of such grant of Performance Share Units and any crediting of additional Performance Share Units to Employee pursuant to dividends paid on shares of Stock under
Section 5 hereof (“Dividend Equivalents”).
3. Nontransferability. Until Performance Share Units are settled by delivery of shares of Stock in accordance with the terms of this Agreement, Employee may not transfer Performance Share
Units or any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under Section 11(b) of the Plan. This
restriction on transfer precludes any sale, assignment, pledge or other encumbrance or disposition of the Performance Share Units (except for forfeitures to the Company).
4. Termination of Employment. The following provisions will govern the earning, vesting and forfeiture of the Performance Share Units that are outstanding at the time of Employee’s Termination
of Employment (as defined below) (i) by the Company without Cause (as defined below) or by the Employee for Good Reason (as defined below), in either case during the CIC Protection Period (as defined below), or (ii) due to death, Disability (as
defined below) or Retirement (as defined below), unless otherwise determined by the Committee (subject to Section 8(e) hereof):
(a) Termination by the Company or by the Employee in Certain Events. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date, by the Company without Cause within the CIC Protection
Period and other than for Disability or Retirement, or by Employee for Good Reason within the CIC Protection Period, the outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion (as defined below) of the
Performance Share Units, to the extent earned previously (upon a Change in Control where provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the
Change in Control or otherwise), to the extent not vested previously, and such earned and vested Performance Share Units will be settled in accordance with Section 6(a) hereof. In
the event of Employee’s Termination of Employment, prior to the Stated Vesting Date, (i) by the Company for Cause and other than for Disability or Retirement, (ii) by the Company for any reason other than Disability or Retirement prior to or
after the CIC Protection Period, (iii) by Employee (other than for Good Reason within the CIC Protection Period or upon Retirement), or (iv) by Employee (other than upon Retirement) before or after the CIC Protection Period, the portion of the
then-outstanding Performance Share Units not earned and vested at the date of Employee’s Termination of Employment will be forfeited.
6
(b) Death, Disability or Retirement. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date and before a Change in Control, due to Employee’s death, Disability or Retirement, the
outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion (as defined below) of the Performance Share Units, to the extent not earned previously, that may become earned on the Earning Date, to the extent
not previously vested, and such vested Performance Share Units will continue to be subject to the Performance Goal and will be eligible to be earned if and to the extent that the Performance Goal is achieved or there is a Change in Control prior
to the Stated Vesting Date and settled in accordance with Section 6(a) hereof. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date but on or after a Change in Control, due to Employee’s death, Disability or
Retirement, the outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion of the Performance Share Units, to the extent earned previously (upon a Change in Control where provision is made for the
continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control or otherwise), to the extent not vested previously, and such earned and vested Performance Share Units
will be settled in accordance with Section 6(a) hereof. Any portion of the then-outstanding Performance Share Units not vested at or before the date of Employee’s Termination of Employment will be forfeited.
(c) Certain Definitions. The following definitions apply for purposes of this Agreement:
(i) “Cause” has the same definition as
under any employment or similar agreement between the Company and Employee or, if no such agreement exists or if such agreement does not contain any such definition, Cause means (i) Employee’s conviction of a felony or the entering by Employee of
a plea of nolo contendere to a felony charge, (ii) Employee’s gross neglect, willful malfeasance or willful gross misconduct
in connection with his or her employment which has had a significant adverse effect on the business of the Company and its subsidiaries, unless Employee reasonably believed in good faith that such act or non-act was in or not opposed to the best
interest of the Company, or (iii) repeated material violations by Employee of the duties and obligations of Employee’s position with the Company which have continued after written notice thereof from the Company, which violations are demonstrably
willful and deliberate on Employee’s part and which result in material damage to the Company’s business or reputation.
(ii) “CIC Protection Period” means the
two-year period beginning on the date of a Change in Control and ending on the day before the second annual anniversary of the date of the Change in Control.
(iii) “Disability” means Employee has been
incapable of substantially fulfilling the positions, duties, responsibilities and obligations of his employment because of physical, mental or emotional incapacity resulting from injury, sickness or disease for a period of at least six
consecutive months. The Company and Employee shall agree on the identity of a physician to resolve any question as to Employee’s disability. If the Company and Employee cannot agree on the physician to make such determination, then the Company
and Employee shall each select a physician and those physicians shall jointly select a third physician, who shall make the determination. The determination of any such physician shall be final and conclusive for all purposes of this Agreement.
Only the Company can initiate a Termination of Employment due to Disability.
7
(iv) “Good Reason” has the same definition
as under any employment or similar agreement between the Company and Employee; but, if no such agreement exists or if any such agreement does not contain or reference any such definition, Good Reason shall not apply to the Employee for purposes
of this Agreement.
(v) “Pro Rata Portion” means a fraction,
the numerator of which is the number of days from the first day of the 36-month earning period specified on Exhibit A to the date of Employee’s Termination of Employment due to Employee’s death, Disability or Retirement, or by the Company without
Cause within the CIC Protection Period and other than for Disability or Retirement or by Employee for Good Reason within the CIC Protection Period, and the denominator of which is the number of days from the first day of such 36-month earning
period to the Earning Date.
(vi) “Retirement” means the Employee has
attained age 65, or age 55 with 20 or more years of service.
(vii) “Subsidiary” means any subsidiary
corporation of the Company within the meaning of Section 424(f) of the Code (“Section 424(f) Corporation”) and any partnership, limited liability company or joint venture in which either the Company or Section 424(f) Corporation is at least a 50%
equity participant.
(vii) “Termination of Employment” and
“Termination” means the earliest time at which Employee is not employed by the Company or a Subsidiary of the Company.
(d) Termination by the Company for Cause. In the event of Employee’s Termination of Employment by the Company for Cause, the portion of the then-outstanding Performance Share Units not earned and vested prior to
such time will be forfeited immediately upon notice to Employee that the Company is terminating the Employee’s employment for Cause.
5.
Dividend Equivalents and Adjustments.
(a) Dividend Equivalents. Dividend Equivalents will be credited on Performance Share Units (other than Performance Share Units that, at the relevant record date, previously have been settled or forfeited) and
deemed converted into additional Performance Share Units. Dividend Equivalents will be credited as follows, except that the Company may vary the manner of crediting (for example, by crediting cash dividend equivalents rather than additional
Performance Share Units) for administrative convenience:
(i) Cash Dividends. If the Company declares and pays a dividend or distribution on shares of Stock in the form of cash, then additional Performance Share Units shall be credited to Employee’s Account as of the
payment date of such cash dividend or distribution (or settled as of the payment date of such cash dividend or distribution if the Performance Share Units are to be settled before the payment date) equal to the number of Performance Share Units
credited to the Account as of the relevant record date multiplied by the amount of cash paid per share of Stock in such dividend or distribution divided by the Fair Market Value of a share of Stock at the payment date for such dividend or
distribution.
(ii) Non-Share Dividends. If the Company declares and pays a dividend or
distribution on shares of Stock in the form of property other than shares of Stock, then a number of additional Performance Share Units shall be credited to Employee’s Account as of the payment date of such cash dividend or distribution (or settled
as of the payment date of such cash dividend or distribution if the Performance Share Units are to be settled before the payment date) equal to the number of Performance Share Units credited to the Account as of the record date for such dividend or
distribution multiplied by the fair market value of such property actually paid as a dividend or distribution on each outstanding share of Stock at such payment date, divided by the Fair Market Value of a share of Stock at such payment date for such
dividend or distribution.
8
(iii) Share Dividends and Splits. If the Company declares and pays a dividend or distribution on shares of Stock in the form of additional shares of Stock, or there occurs a forward split of shares of Stock,
then a number of additional Performance Share Units shall be credited to Employee’s Account as of the payment date for such dividend or distribution or forward split (or settled as of the payment date for such dividend or distribution or forward
split if the Performance Share Units are to be settled before the payment date) equal to the number of Performance Share Units credited to the Account as of the record date for such dividend or distribution or split multiplied by the number of
additional shares of Stock actually paid as a dividend or distribution or issued in such split in respect of each outstanding share of Stock.
(b) Adjustments. The number of Performance Share Units credited to Employee’s Account shall be appropriately adjusted in order to prevent dilution or enlargement of Employee’s rights with respect to Performance
Share Units or to reflect any changes in the number of outstanding shares of Stock resulting from any event referred to in Section 11(c) of the Plan, taking into account any Performance Share Units credited to Employee in connection with such
event under Section 5(a) hereof. In furtherance of the foregoing, in the event of an equity restructuring, as defined in ASC Topic 718, which affects the shares of Stock, Employee shall have a legal right to an adjustment to Employee’s
Performance Share Units which shall preserve without enlarging the value of the Performance Share Units, with the manner of such adjustment to be determined by the Committee in its discretion. All adjustments will be made in a manner as to
maintain the Performance Share Unit’s exemption from Code Section 409A or, to the extent Code Section 409A applies, to comply with Code Section 409A. Any adjustments shall be subject to the requirements and restrictions set forth in Section
11(c) of the Plan.
(c) Risk of Forfeiture and Settlement of Performance Share Units Resulting from Dividend Equivalents and Adjustments. Performance Share Units which directly or indirectly result from Dividend Equivalents on or
adjustments to Performance Share Units granted hereunder shall be subject to the same risk of forfeiture and other conditions as apply to the granted Performance Share Units with respect to which the Dividend Equivalents or adjustments related
and will be settled at the same time as such related Performance Share Units (unless the Performance Share Units are to be settled prior to the payment date of the Dividend Equivalents or the date of such adjustments, in which case the Dividend
Equivalents or adjustments will be settled at the payment date of the dividends or the date of such adjustments (and in no event later than 60 days after the Performance Share Units otherwise are to be settled)).
6. Settlement and Deferral.
(a) Settlement Date. Except as otherwise set forth above under “Further Conditions to Settlement,” Performance Share Units granted hereunder that have become earned and vested, together with Performance Share
Units credited as a result of Dividend Equivalents with respect thereto, to the extent earned and vested, shall be settled by delivery of one share of Stock for each Performance Share Unit being settled at the time specified herein. Settlement of
earned and vested Performance Share Units granted hereunder shall occur at the Earning Date (with shares to be delivered within 60 days after the Earning Date); provided, however, that settlement of earned and vested Performance Share Units shall
occur within 60 days after a Change in Control if no provision is made for the continuance, assumption or substitution of the Performance Share Units by the Company or its successor in connection with the Change in Control; and provided further,
that settlement shall be deferred if so elected by Employee in accordance with Section 6(b) hereof subject to Section 6(c) hereof. Settlement of Performance Share Units which directly or indirectly result from Dividend Equivalents on Performance
Share Units granted hereunder generally shall occur at the time of settlement of the related Performance Share Units except as otherwise described above.
9
(b) Elective Deferral. The Committee may determine to permit Employee to elect to defer settlement (or re-defer) if such election would be permissible under Section 11(k) of the Plan and Code Section 409A. In
addition to any applicable requirements under Code Section 409A, any such deferral election shall be made only while Employee remains employed and at a time permitted under Code Section 409A. The form under which an election is made shall set
forth the time and form of payment of such amount deferred. Any amount deferred shall be subject to a six-month delay upon payment if required under Section 11(k)(i)(F) of the Plan. Any elective deferral will be subject to such additional terms
and conditions as the Senior Vice President, Human Resources, or the officer designated by the Company as responsible for administration of the Agreement, may reasonably impose.
(c) Compliance with Code Section 409A. Other provisions of this Agreement notwithstanding, because the Performance Share Units will constitute a "deferral of compensation" under Section 409A of the Code (“Code
Section 409A”) as presently in effect or hereafter amended (i.e., the Performance Share Units are not excluded or exempted under Code Section 409A or a regulation or other official governmental guidance thereunder; Note: an elective deferral
under Section 6(b) would cause the Performance Share Units, if not already, to be a deferral of compensation subject to Code Section 409A after the deferral), such Performance Share Units will be considered a 409A Award under the Plan and shall
be subject to the additional requirements set forth in Section 11(k) of the Plan including without limitation that (i) Termination of Employment shall be construed consistent with the meaning of a Separation from Service and (ii) a Change in
Control under the Agreement shall be construed consistent with the meaning of a 409A Ownership/Control Change.
7. Employee Representations and Warranties Upon Settlement. As a condition to the settlement of the Performance Share
Units, the Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation and (ii) to execute a release from claims against the Company arising at or before the
date of the release, in such form as may be specified by the Company, and not revoke such release prior the expiration of any applicable revocation period, all within 60 days after Termination of Employment.
8. Miscellaneous.
(a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties. This Agreement constitutes the entire agreement between the
parties with respect to the Performance Share Units, and supersedes any prior agreements or documents with respect to the Performance Share Units. No amendment or alteration of this Agreement which may impose any additional obligation upon the
Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which may materially impair the rights of Employee with respect to
the Performance Share Units shall be valid unless expressed in a written instrument executed by Employee.
(b) No Promise of Employment. The Performance Share Units and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue
as an officer or employee of the Company for any period of time, or at any particular rate of compensation.
(c) Governing Law. The validity, construction, and effect of this Agreement shall be determined in accordance with the laws (including those governing contracts) of the state of New Jersey, without giving effect
to principles of conflicts of laws, and applicable federal law.
10
(d) Fractional Performance Share Units and Shares. The number of Performance Share Units credited to Employee’s Account shall include fractional Performance Share Units calculated to at least three decimal
places, unless otherwise determined by the Committee. Unless settlement is effected through a third-party broker or agent that can accommodate fractional shares (without requiring issuance of a fractional Share by the Company), upon settlement of
the Performance Share Units, the Committee, in its sole discretion, may either (i) round the fractional share to be delivered up to a whole Share or (ii) provide that Employee shall be paid, in cash, an amount equal to the value of any fractional
Share that would have otherwise been deliverable in settlement of such Performance Share Units.
(e) Mandatory Tax Withholding. Unless otherwise determined by the Committee, or Employee has elected at least 90 days prior to payout to satisfy the tax obligations in cash by other means, at the time of vesting
and/or settlement the Company will withhold first from any cash payable and then from any shares of Stock deliverable in settlement of the Performance Share Units, in accordance with Section 11(d)(i) of the Plan, the number of whole shares of
Stock having a value nearest to, but not exceeding, the minimum amount of income and employment taxes required to be withheld under applicable laws and regulations (only with respect to the minimum amount of Shares necessary to satisfy statutory
withholding requirements, unless withholding of any additional amount of Shares will not result in additional accounting expense to the Company and is permitted by the Committee), and pay the amount of such withholding taxes in cash to the
appropriate taxing authorities. Employee will be responsible for any withholding taxes not satisfied by means of such mandatory withholding and for all taxes in excess of such minimum withholding taxes that may be due upon vesting or settlement
of Performance Share Units.
(f) Statements. An individual statement of each Employee’s Account will be issued to Employee at such times as may be determined by the Company. Such a statement shall reflect the number of Performance Share
Units credited to Employee’s Account, transactions therein during the period covered by the statement, and other information deemed relevant by the Company. Such a statement may be combined with or include information regarding other plans and
compensatory arrangements. Employee’s statements shall be deemed a part of this Agreement, and shall evidence the Company’s obligations in respect of Performance Share Units, including the number of Performance Share Units credited as a result of
Dividend Equivalents (if any). Any statement containing an error shall not, however, represent a binding obligation to the extent of such error, notwithstanding the inclusion of such statement as part of this Agreement.
(g) Unfunded Obligations. The grant of the Performance Share Units and any provision for distribution in settlement of Employee’s Account hereunder shall be by means of bookkeeping entries on the books of the
Company and shall not create in Employee any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for Employee. With respect to Employee’s entitlement to any distribution
hereunder, Employee shall be a general creditor of the Company.
(h) Notices. Any notice to be given the Company under this Agreement shall be addressed to the Company at its principal executive offices, in care of the Senior Vice President, Human Resources, or the officer
designated by the Company as responsible for administration of the Agreement, and any notice to Employee shall be addressed to Employee at Employee’s address as then appearing in the records of the Company.
(i) Shareholder Rights. Employee and any Beneficiary shall not have any rights with respect to shares of Stock (including voting rights) covered by this Agreement prior to the settlement and distribution of the
shares of Stock except as otherwise specified herein. Specifically, Performance Share Units represent a contractual right to receive shares of Stock in the future, subject to the terms and conditions of this Agreement and the Plan, and do not
represent ownership of shares of Stock at any time before the settlement of this Award and actual issuance of the shares of Stock.
11
Exhibit A
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance Goal and Earning of Performance Share Units
The number of Performance Share Units earned by Participant shall be determined as of September 30, 2025 (the “Earning Date”), based on the Company’s “Cumulative NFEPS”
(defined below) over the 36-month period ending at the Earning Date. The number of Performance Share Units earned will be determined based on the following table:
|
Cumulative NFEPS
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Performance Share Units Earned as a
Percentage of Target
Performance Share Units
|
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Less than $
|
0%
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$
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50%
|
|
$
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100%
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$ or Greater
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150%
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“Net Financial Earnings” or “NFE” is a financial measure not calculated in accordance with generally accepted accounting principles that the Company reports on a
quarterly and annual basis to the public and in its quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed with the Securities and Exchange Commission (“SEC”).
“NFEPS” shall be the NFE per basic share of Common Stock that the Company reports on a quarterly and annual basis to the public and in its quarterly reports on Form 10-Q
and annual report on Form 10-K that are filed with the SEC.
“Cumulative NFEPS” shall be the sum of the annual NFEPS for the three fiscal years (“FY”) ended September 30, 2023, 2024 and 2025 calculated as follows:
Cumulative NFEPS = NFEPSFY2023 + NFEPSFY2024 + NFEPSFY2025
Upon achievement of Cumulative NFEPS at a point between any two specified Cumulative NFEPS levels, the Performance Share Units earned will be mathematically interpolated
on a straight-line basis.
Determinations of the Committee regarding the NFEPS and Cumulative NFEPS, the calculations related thereto, the resulting Performance Share Units and related matters
will be final and binding on the Participant.
12
Exhibit B
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Definitions Under Further Conditions to Settlement
| a. |
“Business of the Company” means the following areas of its business which are selected below, which Employee acknowledges are areas of the Company’s business in which Employee has responsibilities:
|
(check as applicable)
| ___ |
Natural Gas Distribution: Consists of New Jersey Natural Gas Company
(“NJNG”), a natural gas utility company that provides regulated retail natural gas service to residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets, and
also includes investments in renewable natural gas and green hydrogen technologies.
|
| ___ |
Energy Services: Maintains and transacts around a portfolio of physical
assets consisting of natural gas storage and transportation contracts and also provides wholesale energy management services to other energy companies and natural gas producers in market areas including states from the Gulf Coast and
Mid-continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
|
| ___ |
Clean Energy Ventures: Investor, owner, and operator in the renewable
energy sector, including, but not limited to, investments in residential and commercial rooftop and ground mount solar systems.
|
| ___ |
Storage and Transportation: Includes investments in
natural gas transportation and storage assets and is comprised of the following: Steckman Ridge, which is a partnership that owns and operates a 17.7 Bcf natural gas storage facility, with up to 12 Bcf working capacity, in western
Pennsylvania that is 50 percent owned by a Company Subsidiary; Leaf River Energy Center, a natural gas storage facility located in southeastern Mississippi with a combined working natural gas storage capacity of 32.2 million dekatherms;;
and Adelphia Gateway, an 84-mile pipeline in southeastern Pennsylvania.
|
| ___ |
Home Services: Consists of NJR Home Services Company, which provides
Heating, Ventilating, and Air Conditioning (“HVAC”) service, sales and installation of appliances, as well as installation of solar equipment.
|
| b. |
“Confidential Information” means all valuable and/or proprietary information (in oral, written, electronic or other forms) belonging to or pertaining to the Company, its customers and vendors, that
is not generally known or publicly available, and which would be useful to competitors of the Company or otherwise damaging to the Company if disclosed. Confidential Information may include, but is not necessarily limited to: (i) the
identity of the Company’s customers or potential customers, their purchasing histories, and the terms or proposed terms upon which the Company offers or may offer its products and services to such customers, (ii) the identity of the Company’s
vendors or potential vendors, and the terms or proposed terms upon which the Company may purchase products and services from such vendors, (iii) technology used by the Company to provide its services, (iv) the terms and conditions upon which
the Company employs its employees and independent contractors, (v) marketing and/or business plans and strategies, (vi) financial reports and analyses regarding the revenues, expenses, profitability and operations of the Company, and (vii)
information provided to the Company by customers and other third parties under a duty to maintain the confidentiality of such information. Notwithstanding the foregoing, Confidential Information does not include information that: (i) has
been voluntarily disclosed to the public by Company or any Employer, except where such public disclosure has been made by Employee without authorization from Company or Employer; (ii) has been independently developed and disclosed by others,
or (iii) which has otherwise entered the public domain through lawful means. Confidential Information also does not include information related to any claim of sexual harassment or sexual assault and nothing herein restricts the disclosure of
such information. Nothing herein shall prohibit, prevent or restrict the Employee from reporting any allegations of unlawful conduct to federal, state or local officials or to an attorney retained by the Employee.
|
13
| c. |
“Material Contact” means contact in person, by telephone, or by paper or electronic correspondence, or the supervision of those who have such conduct, and which is done in furtherance of the business
interests of the company and within the last 36 months.
|
| d. |
“Restricted Territory” consists of the following areas, to the extent such areas have been identified as applicable to the definition of the “Business of the company” above:
|
Natural Gas Distribution: The State of New
Jersey and for those employees engaged in or supervising off system sales, the States of New Jersey, New York and Pennsylvania.
Energy Services: The Continental United
States and within a 100 mile radius of the Dawn Storage Hub in Canada.
Clean Energy Ventures: The States of New
Jersey, Connecticut, Rhode Island and New York.
Storage and Transportation: The States of New
Jersey, New York, Connecticut, Pennsylvania, Virginia, West Virginia, Mississippi, Alabama, Louisiana and Texas.
Home Services: The State of New Jersey.
| e. |
“Trade Secrets” means a trade secret of the Company as defined by applicable law.
|
14
Exhibit 10.3
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Restricted Stock Units Agreement
This Restricted Stock Units Agreement (the "Agreement"), which includes the attached “Terms and Conditions of Restricted Stock Units” (the “Terms and
Conditions”), confirms the grant on November ___, 2022 (the “Grant Date”) by NEW JERSEY RESOURCES CORPORATION, a New Jersey corporation (the "Company"), to
("Employee"), under Section 6(e) of the 2017 Stock Award and Incentive Plan (the "Plan"), of Restricted Stock Units, including rights to Dividend Equivalents as specified herein, as follows:
Number of Restricted Stock Units granted: _________
How Restricted Stock Units Vest: The Restricted Stock Units, if not previously forfeited, will vest on the dates and as to the number of Restricted Stock Units in the following table provided Employee remains employed by the
Company or a Subsidiary from the Grant Date through the Stated Vesting Date:
|
Stated Vesting Date
|
Number of Restricted Stock Units
that Vest at that Date
|
|
October 15, 2023
|
________
|
|
October 15, 2024
|
________
|
|
October 15, 2025
|
________
|
In addition, if not previously vested or forfeited, the Restricted Stock Units (i) will become immediately vested in full upon a Change in Control prior
to the Stated Vesting Date, if (A) Employee remains employed by the Company or a Subsidiary from the Grant Date through the Change in Control and (B) no provision is made for the continuance, assumption or substitution of the Restricted Stock Units
by the Company or its successor in connection with the Change in Control; and (ii) will become vested upon the Employee’s Termination of Employment, prior to the Stated Vesting Date, to the extent provided in Section 3 of the attached Terms and
Conditions. The terms "vest" and "vesting" mean that the Restricted Stock Units have become earned and payable. If Employee has a Termination of Employment prior to a Stated Vesting Date, and the Restricted Stock Units are not otherwise deemed
vested by or as of that date as set forth above, such unvested Restricted Stock Units will be immediately forfeited. Forfeited Restricted Stock Units cease to be outstanding and in no event will thereafter result in any delivery of shares of Stock
to Employee.
Settlement: The Restricted Stock Units, to the extent vested, including Restricted Stock Units credited as the result of Dividend Equivalents, to the extent vested,
will be settled by delivery of one share of Stock for each Restricted Stock Unit to be settled, as soon as administratively practicable (and no later than 60 days) after the earlier of (i) the Stated Vesting Date that corresponds to the applicable
tranche of vested Restricted Stock Units or (ii) a Change in Control if no provision is made for the continuance, assumption or substitution of the Restricted Stock Units by the Company or its successor in connection with the Change in Control.
Notwithstanding the foregoing, the Committee may determine to permit Employee to elect to defer settlement (or re-defer) if such election would be permissible under Section 11(k) of the Plan and Code Section 409A. In addition to any applicable
requirements under Code Section 409A, any such deferral election shall be made only while Employee remains employed and at a time permitted under Code Section 409A. The form under which an election is made shall set forth the time and form of
payment of such amount deferred. Any amount deferred shall be subject to a six (6)-month delay upon payment if required under Section 11(k)(i)(F) of the Plan. Any elective deferral will be subject to such additional terms and conditions as the
Senior Vice President, Human Resources, or the officer designated by the Company as responsible for administration of the Agreement, may reasonably impose.
Further Conditions to Settlement: Notwithstanding any other provision of this Agreement, except as otherwise set forth below, the Company’s obligation to settle the
Restricted Stock Units and Employee’s right to distribution of the Restricted Stock Units will be forfeited immediately upon the occurrence of any one or more of the following events (defined terms are attached hereto as Exhibit B):
| (a) |
Competitive Employment. In the event that Employee, prior to
full settlement of the Restricted Stock Units and within the Restricted Territory, directly or indirectly, whether on Employee’s own behalf or on behalf of any other person or entity, performs services of the type which are the same as or
similar to those conducted, authorized, offered or provided by Employee to the Company within the last 24 months, and which support business activities which compete with the Business of the Company.
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| (b) |
Recruitment of Company Employees and Contractors. In the
event that Employee, prior to full settlement of the Restricted Stock Units, directly or indirectly, whether on Employee’s own behalf or on behalf of any other person or entity, solicits or induces any employee or independent contractor of
the Company with whom Employee had Material Contact to terminate or lessen such employment or contract with the Company.
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| (c) |
Solicitation of Company Customers. In the event that
Employee, prior to full settlement of the Restricted Stock Units, directly or indirectly, whether on Employee’s own behalf or on behalf of any other person or entity, solicits any actual or prospective customers of the Company with whom
Employee had Material Contact for the purpose of selling any products or services which compete with the Business of the Company.
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| (d) |
Solicitation of Company Vendors. In the event that Employee,
prior to full settlement of the Restricted Stock Units, directly or indirectly, whether on Employee’s own behalf or on behalf of any other person or entity, solicits any actual or prospective vendor of the Company with whom Employee had
Material Contact for the purpose of purchasing products or services to support business activities which compete with the Business of the Company.
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| (e) |
Breach of Confidentiality. In the event that Employee, at
any time prior to full settlement of the Restricted Stock Units, directly or indirectly, divulges or makes use of any Confidential Information or Trade Secrets of the Company other than in the performance of Employee’s duties for the
Company. This provision does not limit the remedies available to the Company under common or statutory law as to trade secrets or other forms of confidential information, which may impose longer duties of non-disclosure and provide for
injunctive relief and damages. Notwithstanding anything herein to the contrary, nothing herein is intended to or will be used in any way to prevent Employee from providing truthful testimony under oath in a judicial or administrative
proceeding or to limit Employee’s right to communicate with a government agency, as provided for, protected under or warranted by applicable law. The Employee further understands nothing herein limits the Employee’s ability to file a
charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or any other federal, state or local
government agency or commission (‘Government Agencies”). Nothing herein limits the Employee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by the
Government Agency, including providing documents or information without notice to the Company. This Agreement does not limit the Employee’s right to receive an award for information provided to any Government Agency. Notwithstanding
anything herein to the contrary, the Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that (i) is made in confidence to a federal, state, or local
government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or investigating a suspected violation of law or (ii) is made in a complaint or other document filed in a lawsuit or other
proceeding, if such filing is made under seal. In addition, if the Employee files a lawsuit for retaliation for reporting a suspected violation of law, the Employee may disclose the Trade Secret to his or her attorney and use the Trade
Secret information in the court proceeding, as long as the Employee files any document containing the Trade Secret under seal and does not disclose the Trade Secret, except pursuant to court order.
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2
| (f) |
Return of Property and Information. In the event that prior
to full settlement of the Restricted Stock Units Employee fails to return all of the Company’s property and information (whether confidential or not) within Employee’s possession or control within seven (7) calendar days following the
termination or resignation of Employee from employment with the Company. Such property and information includes, but is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information
provided by the Company to Employee or which Employee has developed or collected in the scope of Employee’s employment with the Company, as well as all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools,
devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers. Upon request by the Company, Employee shall certify in writing that Employee has complied with this provision and has
permanently deleted all Company information from any computers or other electronic storage devices or media owned by Employee. Employee may only retain information relating to the Employee’s benefit plans and compensation to the extent
needed to prepare Employee’s tax returns.
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| (g) |
Disparagement. In the event that prior to full settlement of
the Restricted Stock Units Employee makes any statements, either verbally or in writing, that are disparaging with regard to the Company or any of its subsidiaries or their respective executives and Board members.
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| (h) |
Failure to Provide Information. In the event that prior to
full settlement of the Restricted Stock Units Employee fails to promptly and fully respond to requests for information from the Company regarding Employee’s compliance with any of the foregoing conditions.
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If it is determined by the Leadership Development and Compensation Committee of the Company’s Board of Directors, in its sole discretion, that any of the
foregoing events have occurred prior to full settlement of the Restricted Stock Units, any unpaid portion of the Restricted Stock Units will be forfeited without any compensation therefor, provided, however, that none of the foregoing conditions
shall restrict any Employee who is a lawyer from practicing law. To the extent any such condition would restrict any Employee who is a lawyer from practicing law or would penalize the Employee for practicing law, such condition shall not be
effective and the Leadership Development and Compensation Committee may not forfeit any of the Restricted Stock Units on account therefor.
The Restricted Stock Units are subject to the terms and conditions of the Plan and this Agreement, including the attached Terms and Conditions deemed a
part hereof. The number of Restricted Stock Units and the kind of shares deliverable in settlement and other terms and conditions of the Restricted Stock Units are subject to adjustment in accordance with Section 4(b) of the attached Terms and Conditions and Section 11(c) of the Plan. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.
3
Employee acknowledges and agrees that (i) Restricted Stock Units are nontransferable, except as provided in Section 2 of the attached Terms and
Conditions and Section 11(b) of the Plan, (ii) the Restricted Stock Units are subject to forfeiture in the event of Employee's Termination of Employment in certain circum-stances prior to vesting, as specified in Section 3 of the attached Terms and
Conditions, and (iii) sales of the shares of Stock following vesting and settlement of the Restricted Stock Units will be subject to the Company's policy regulating trading by employees.
IN WITNESS WHEREOF, NEW JERSEY RESOURCES CORPORATION has caused this Agreement to be executed by its officer thereunto duly authorized, and Employee has
duly executed this Agreement, by which each has agreed to the terms of this Agreement.
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EMPLOYEE
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NEW JERSEY RESOURCES CORPORATION
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By:
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[Employee Name]
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[Name]
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[Title]
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||||
4
TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS
The following Terms and Conditions apply to the Restricted Stock Units granted to Employee by NEW JERSEY RESOURCES CORPORATION (the "Company"), and
Restricted Stock Units resulting from Dividend Equivalents (as defined below), if any, as specified in the Restricted Stock Units Agreement (of which these Terms and Conditions form a part). Certain terms of the Restricted Stock Units, including the
number granted, vesting date(s) and settlement times, are set forth on the preceding pages, which is an integral part of this Agreement.
1. General.
(a) The Restricted Stock
Units are granted to Employee under the Company's 2017 Stock Award and Incentive Plan (the "Plan"), a copy of which has been previously delivered to Employee and/or is available upon request to the Human Resources Department. All of the
applicable terms, conditions and other provisions of the Plan are incorporated by reference herein. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan. If there is any conflict between the
provisions of this document and mandatory provisions of the Plan, the provisions of the Plan govern. By accepting the grant of Restricted Stock Units, Employee agrees to be bound by all of the terms and provisions of the Plan (as presently in
effect or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations relating to the Plan and grants thereunder of the Leadership Development and Compensation Committee of the
Company's Board of Directors (the "Committee") made from time to time.
(b) Account for Employee. The Company shall maintain a bookkeeping account for Employee (the “Account”) reflecting the number of Restricted Stock Units then credited to Employee
hereunder as the result of such grant of Restricted Stock Units and any crediting of additional Restricted Stock Units to Employee pursuant to dividends paid on shares of Stock under Section 4 hereof (“Dividend Equivalents”).
2. Nontransferability. Until such time as the Restricted Stock Units are settled by delivery of Stock in accordance with this Agreement, Employee may not transfer Restricted Stock Units or
any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under Section 11(b) of the Plan. This restriction
on transfer precludes any sale, assignment, pledge, or other encumbrance or disposition of the Restricted Stock Units (except for forfeitures to the Company).
3. Termination of Employment. The following provisions will govern the vesting or forfeiture, and the settlement, of the Restricted Stock Units that are outstanding at the time of Employee's
Termination of Employment (i) due to Employee’s death, Disability or Retirement, (ii) by the Company without Cause or by the Employee for Good Reason, in either case during the CIC Protection Period, or (iii) under circumstances other than those
set forth in the immediately preceding clauses (i) and (ii), in each case prior to the Stated Vesting Date that corresponds to the applicable tranche of Restricted Stock Units, unless otherwise determined by the Committee (subject to Section 7(e)
hereof):
(a) Death, Disability or Retirement. In the event of Employee's Termination of Employment, prior to the Stated Vesting Date that applies to the applicable tranche of Restricted
Stock Units, due to death, Disability or Retirement, the outstanding Restricted Stock Units will be vested with respect to no less than a Pro Rata Portion of the outstanding Restricted Stock Units, to the extent not vested previously, and all
Restricted Stock Units, to the extent vested, including Restricted Stock Units credited as the result of Dividend Equivalents, to the extent vested, shall be settled, as soon as administratively practicable (and no later than 60 days) after the
earlier of (i) the Stated Vesting Date that corresponds to the applicable tranche of vested Restricted Stock Units or (ii) a Change in Control if no provision is made for the continuance, assumption or substitution of the Restricted Stock Units
by the Company or its successor in connection with the Change in Control. Restricted Stock Units that are not vested by or as of the date of Employee's Termination of Employment due to death, Disability or Retirement will be immediately
forfeited.
5
(b) Termination by the Company or by Employee in Certain Events. In the event of Employee’s Termination of Employment, prior to the Stated Vesting Date that applies to the
applicable tranche of Restricted Stock Units, by the Company without Cause within the CIC Protection Period and other than for Disability or Retirement, or by Employee for Good Reason within the CIC Protection Period, all such outstanding
Restricted Stock Units will be vested, to the extent not previously vested, and all Restricted Stock Units, to the extent vested, including Restricted Stock Units credited as the result of Dividend Equivalents, to the extent vested, shall be
settled, as soon as administratively practicable (and no later than 60 days) after (i) the Stated Vesting Date that corresponds to the applicable tranche of vested Restricted Stock Units or (ii) a Change in Control if no provision is made for the
continuance, assumption or substitution of the Restricted Stock Units by the Company or its successor in connection with the Change in Control.
(c) Other Termination of Employment. In the event of Employee's Termination of Employment, prior to the Stated Vesting Date that applies to the applicable tranche of Restricted
Stock Units, (i) other than due to death, Disability or Retirement and (ii) other than by the Company without Cause within the CIC Protection Period and other than for Disability or Retirement, or by Employee for Good Reason within the CIC
Protection Period, all Restricted Stock Units, to the extent vested, including Restricted Stock Units credited as the result of Dividend Equivalents, to the extent vested, shall be settled, as soon as administratively practicable (and no later
than 60 days) after the earlier of (i) the Stated Vesting Date that corresponds to the applicable tranche of vested Restricted Stock Units or (ii) a Change in Control if no provision is made for the continuance, assumption or substitution of the
Restricted Stock Units by the Company or its successor in connection with the Change in Control. Restricted Stock Units that are not vested by or as of the date of Employee's Termination of Employment as described herein will be immediately
forfeited.
(d) Certain Definitions. The following definitions apply for purposes of this Agreement:
(i) “Cause” has the same
definition as under any employment or similar agreement between the Company and Employee or, if no such agreement exists or if such agreement does not contain any such definition, Cause means (i) Employee’s conviction of a felony or the entering
by Employee of a plea of nolo contendere to a felony charge, (ii) Employee’s gross neglect, willful malfeasance or willful
gross misconduct in connection with his or her employment which has had a significant adverse effect on the business of the Company and its subsidiaries, unless Employee reasonably believed in good faith that such act or non-act was in or not
opposed to the best interest of the Company, or (iii) repeated material violations by Employee of the duties and obligations of Employee’s position with the Company which have continued after written notice thereof from the Company, which
violations are demonstrably willful and deliberate on Employee’s part and which result in material damage to the Company’s business or reputation.
(ii) “CIC Protection
Period” means the two-year period beginning on the date of a Change in Control and ending on the day before the second annual anniversary of the date of the Change in Control.
(iii) "Disability" means
Employee has been incapable of substantially fulfilling the positions, duties, responsibilities and obligations of his employment because of physical, mental or emotional incapacity resulting from injury, sickness or disease for a period of at
least six consecutive months. The Company and Employee shall agree on the identity of a physician to resolve any question as to Employee's disability. If the Company and Employee cannot agree on the physician to make such determination, then
the Company and Employee shall each select a physician and those physicians shall jointly select a third physician, who shall make the determination. The determination of any such physician shall be final and conclusive for all purposes of this
Agreement. Only the Company can initiate a Termination of Employment due to Disability.
6
(iv) “Good Reason” has the
same definition as under any employment or similar agreement between the Company and Employee; but, if no such agreement exists or if any such agreement does not contain or reference any such definition, Good Reason shall not apply to the
Employee for purposes of this Agreement.
(v) “Pro Rata Portion"
means, for each tranche of Restricted Stock Units, a fraction the numerator of which is the number of days that have elapsed from the first day of the Company’s fiscal year which includes the Grant Date to the date of Employee's Termination of
Employment and the denominator of which is the number of days from the first day of the Company’s fiscal year which includes the Grant Date to the Stated Vesting Date for that tranche. A "tranche" is each portion of the Restricted Stock Units
that has a unique Stated Vesting Date.
(vii) “Retirement” means
Employee’s Termination of Employment on or after the Employee has attained age 65, or age 55 with 20 or more years of service.
(viii) “Subsidiary” means any
subsidiary corporation of the Company within the meaning of Section 424(f) of the Code (“Section 424(f) Corporation”) and any partnership, limited liability company or joint venture in which either the Company or Section 424(f) Corporation is at
least a 50% equity participant.
(ix) "Termination of
Employment" and “Termination” means the earliest time at which Employee is not employed by the Company or a Subsidiary of the Company and is not serving as a non-employee director of the Company or a Subsidiary of the Company, subject to Section
7(f) below.
(e) Termination by the Company for Cause. In the event of Employee’s Termination of Employment by the Company for Cause, the portion of the then-outstanding Restricted Stock Units not vested previously will be
forfeited immediately upon notice to Employee that the Company is terminating the Employee’s employment for Cause (notwithstanding whether Employee is eligible to terminate employment due to Disability or Retirement at that time).
4. Dividend Equivalents
and Adjustments.
(a) Dividend Equivalents. Dividend Equivalents will be credited on Restricted Stock Units (other than Restricted Stock Units that, at the relevant record date, previously have been
settled or forfeited) and deemed converted into additional Restricted Stock Units. Dividend Equivalents will be credited as follows, except that the Company may vary the manner of crediting (for example, by crediting cash Dividend Equivalents
rather than additional Restricted Stock Units) for administrative convenience:
(i) Cash Dividends. If the Company declares and pays a dividend or distribution on shares of Stock in the form of cash, then additional Restricted Stock Units shall be credited to
Employee’s Account as of the payment date of such cash dividend or distribution (or settled as of the payment date of such cash dividend or distribution if the Restricted Stock Units are to be settled before the payment date) equal to the number
of Restricted Stock Units credited to the Account as of the record date of such dividend or distribution multiplied by the amount of cash paid per share of Stock in such dividend or distribution divided by the Fair Market Value of a share of
Stock at the payment date for such dividend or distribution.
(ii) Non-Share Dividends. If the Company declares and pays a dividend or distribution on shares of Stock in the form of property other than shares of Stock, then a number of
additional Restricted Stock Units shall be credited to Employee’s Account as of the payment date for such dividend or distribution (or settled as of the payment date for such dividend or distribution if the Restricted Stock Units are to be
settled before the payment date) equal to the number of Restricted Stock Units credited to the Account as of the record date for such dividend or distribution multiplied by the fair market value of such property actually paid as a dividend or
distribution on each outstanding share of Stock at such payment date, divided by the Fair Market Value of a share of Stock at such payment date for such dividend or distribution.
7
(iii) Share Dividends and Splits. If the Company declares and pays a dividend or distribution on shares of Stock in the form of additional shares of Stock, or there occurs a forward
split of shares of Stock, then a number of additional Restricted Stock Units shall be credited to Employee’s Account as of the payment date for such dividend or distribution
or forward split (or settled as of the payment date for such dividend or distribution or forward split if the Restricted Stock Units are to be settled before the payment date) equal to the number of Restricted Stock Units credited to the Account
as of the record date for such dividend or distribution or split multiplied by the number of additional shares of Stock actually paid as a dividend or distribution or issued in such split in respect of each outstanding share of Stock.
(b) Adjustments. The number of Restricted Stock Units credited to Employee’s Account shall be appropriately adjusted in order to prevent dilution or enlargement of Employee’s
rights with respect to Restricted Stock Units or to reflect any changes in the number of outstanding shares of Stock resulting from any event referred to in Section 11(c) of the Plan, taking into account any Restricted Stock Units credited to
Employee in connection with such event under Section 4(a) hereof. In furtherance of the foregoing, in the event of an equity restructuring, as defined in ASC Topic 718, which affects the shares of Stock, Employee shall have a legal right to an
adjustment to Employee’s Restricted Stock Units which shall preserve without enlarging the value of the Restricted Stock Units, with the manner of such adjustment to be determined by the Committee in its discretion. All adjustments will be made
in a manner as to maintain the Restricted Stock Units' exemption from Code Section 409A or, to the extent Code Section 409A applies, to comply with Code Section 409A. Any adjustments shall be subject to the requirements and restrictions set
forth in Section 11(c) of the Plan.
(c) Risk of Forfeiture and Settlement of Restricted Stock Units Resulting from Dividend Equivalents and
Adjustments. Restricted Stock Units which directly or indirectly result from Dividend Equivalents on or adjustments to Restricted Stock Units granted hereunder shall be subject to the same risk of forfeiture and other conditions as
apply to the granted Restricted Stock Units with respect to which the Dividend Equivalents or adjustments related and will be settled at the same time as such related Restricted Stock Units (unless the Restricted Stock Units are to be settled
prior to the payment date of the Dividend Equivalents or the date of the adjustments, in which case the Dividend Equivalents or adjustments will be settled at the payment date of the dividend or the date of the adjustments (and in no event later
than sixty (60) days after the Restricted Stock Units otherwise are to be settled)).
5. Other Terms of Restricted Stock Units.
(a) Voting and Other Shareholder Rights. Employee shall not be entitled to vote Restricted Stock Units on any matter submitted to a vote of holders of Common Stock and shall not
have any other rights of a shareholder of the Company, unless and until the Restricted Stock Units are settled as described in the Agreement.
(b) Consideration for Grant of Restricted Stock Units. Employee shall not be required to pay cash consideration for the grant of the Restricted Stock Units and Dividend
Equivalents, but Employee's performance of services to the Company prior to the settlement of the Restricted Stock Units shall be deemed to be consideration for this grant of Restricted Stock Units and Dividend Equivalents.
(c) Insider Trading Policy Applicable. Employee acknowledges that sales of shares resulting from Restricted Stock Units that have been settled will be subject to the Company's
policies governing the purchase and sale of Company securities.
8
(d) Certificates Evidencing Restricted Stock Units. On the date any Restricted Stock Units subject to this Agreement are to be settled (the “Payment Date”), such Restricted Stock Units shall be
settled by the Company delivering to the Employee, a number of shares of Stock equal to the number of shares of Restricted Stock Units that are to be settled upon that Payment Date, subject to any applicable withholding requirements described below. The Company shall issue the shares either (i) in certificate form or (ii) in book entry
form, registered in the name of the Employee. Delivery of any certificates will be made to the Employee’s last address reflected on the books of the Company unless the Company is otherwise instructed in writing. The Company shall pay
fractional Restricted Stock Units in cash, subject to any applicable withholding requirements described below. Neither the Employee nor any of the Employee’s successors, heirs, assigns or personal representatives shall have any further rights
or interests in any Restricted Stock Units and Dividend Equivalents that are so paid.
6. Employee Representations and Warranties and Release. As a condition to settlement
of the Restricted Stock Units to Employee that vest upon Termination of Employment, the Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation, and (ii) to
execute a release from claims against the Company arising at or before the date of such release, in such form as may be specified by the Company, and not revoke such release prior to the expiration of any applicable revocation period, all within
sixty (60) days after Termination of Employment.
7. Miscellaneous.
(a) Binding Agreement; Written Amendments. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties. This Agreement constitutes the
entire agreement between the parties with respect to the Restricted Stock Units and supersedes any prior agreements (either verbal or written) or documents with respect to the Restricted Stock Units. No amendment or alteration of this Agreement
which may impose any additional obligation upon the Company shall be valid unless expressed in a written instrument duly executed in the name of the Company, and no amendment, alteration, suspension or termination of this Agreement which may
materially impair the rights of Employee with respect to the Restricted Stock Units shall be valid unless expressed in a written instrument executed by Employee.
(b) No Promise of Employment. The Restricted Stock Units and the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that
Employee has a right to continue as an officer or employee of the Company for any period of time, or at any particular rate of compensation.
(c) Governing Law. The validity, construction, and effect of this Agreement shall be determined in accordance with the laws (including those governing contracts) of the state of
New Jersey, without giving effect to principles of conflicts of laws, and applicable federal law.
(d) Fractional Restricted Stock Units and Shares. The number of Restricted Stock Units credited to Employee’s Account shall include fractional Restricted Stock Units calculated to
at least three decimal places, unless otherwise determined by the Committee. Unless settlement is effected through a third-party broker or agent that can accommodate fractional shares (without requiring issuance of a fractional Share by the
Company), upon settlement of the Restricted Stock Units, the Committee, in its sole discretion, may either (i) round the fractional Share to be delivered up to a whole Share or (ii) provide that Employee shall be paid, in cash, an amount equal
to the value of any fractional Share that would have otherwise been deliverable in settlement of such Restricted Stock Units.
(e) Mandatory Tax Withholding. Unless otherwise determined by the Committee, or unless Employee has elected at least 90 days prior to payout to satisfy the tax obligations in cash
by other means, at the time of settlement of the Restricted Stock Units to Employee, the Company will withhold first from any cash payable and then from any Shares deliverable, in accordance with Section 11(d)(i) of the Plan, the number of whole
Shares having a value nearest to, but not exceeding, the amount of income and employment taxes to be withheld (after withholding of any cash payable hereunder) (only with respect to the minimum amount of Shares necessary to satisfy statutory
withholding requirements, unless withholding of any additional amount of Shares will not result in additional accounting expense to the Company and is permitted by the Committee), and pay the amount of such withholding taxes in cash to the
appropriate taxing authorities. Employee will be responsible for any withholding taxes not satisfied by means of such mandatory withholding and for all taxes in excess of such withholding taxes that may be due upon settlement of the Restricted
Stock Units.
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(f) Notices. Any notice to be given the Company under this Agreement shall be addressed to the Company at its principal executive offices, in care of the Senior Vice President,
Human Resources, and any notice to Employee shall be addressed to Employee at Employee’s address as then appearing in the records of the Company.
(g) Compliance with Code Section 409A. Other provisions of this Agreement notwithstanding, because the Restricted Stock Units described herein will constitute a "deferral of
compensation" under Section 409A of the Code (“Code Section 409A”) as presently in effect (i.e., the Restricted Stock Units are not excluded or exempted under Code Section 409A or a regulation or other official governmental guidance thereunder;
Note: an elective deferral would cause the Restricted Stock Units, if not already, to be a deferral of compensation subject to Code Section 409A after the deferral), such Restricted Stock Units are considered a 409A Award under the Plan and shall
be subject to the additional requirements set forth in Section 11(k) of the Plan, including without limitation that (i) Termination of Employment shall be construed consistent with the meaning of a Separation from Service under Section 409A of
the Code and (ii) a Change in Control under this Agreement shall be construed consistent with the meaning of a 409A Ownership/Control Change.
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Exhibit B
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Definitions Under Further Conditions to Settlement
| a. |
“Business of the Company” means the following areas of its business which are selected below, which Employee acknowledges are areas of the Company’s business in which Employee has responsibilities:
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(check as applicable)
| ___ |
Natural Gas Distribution: Consists of New Jersey Natural Gas Company
(“NJNG”), a natural gas utility company that provides regulated retail natural gas service to residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets, and
also includes investments in renewable natural gas and green hydrogen technologies.
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| ___ |
Energy Services: Maintains and transacts around a portfolio of physical
assets consisting of natural gas storage and transportation contracts and also provides wholesale energy management services to other energy companies and natural gas producers in market areas including states from the Gulf Coast and
Mid-continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
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| ___ |
Clean Energy Ventures: Investor, owner, and operator in the renewable
energy sector, including, but not limited to, investments in residential and commercial rooftop and ground mount solar systems.
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| ___ |
Storage and Transportation: Includes investments in
natural gas transportation and storage assets and is comprised of the following: Steckman Ridge, which is a partnership that owns and operates a 17.7 Bcf natural gas storage facility, with up to 12 Bcf working capacity, in western
Pennsylvania that is 50 percent owned by a Company Subsidiary; Leaf River Energy Center, a natural gas storage facility located in southeastern Mississippi with a combined working natural gas storage capacity of 32.2 million dekatherms; and
Adelphia Gateway, an 84-mile pipeline in southeastern Pennsylvania.
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| ___ |
Home Services: Consists of NJR Home Services Company, which provides
Heating, Ventilating, and Air Conditioning (HVAC) service, sales and installation of appliances, as well as installation of solar equipment.
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| b. |
“Confidential Information” means all valuable and/or proprietary information (in oral, written, electronic or other forms) belonging to or pertaining to the Company, its customers and vendors, that
is not generally known or publicly available, and which would be useful to competitors of the Company or otherwise damaging to the Company if disclosed. Confidential Information may include, but is not necessarily limited to: (i) the
identity of the Company’s customers or potential customers, their purchasing histories, and the terms or proposed terms upon which the Company offers or may offer its products and services to such customers, (ii) the identity of the Company’s
vendors or potential vendors, and the terms or proposed terms upon which the Company may purchase products and services from such vendors, (iii) technology used by the Company to provide its services, (iv) the terms and conditions upon which
the Company employs its employees and independent contractors, (v) marketing and/or business plans and strategies, (vi) financial reports and analyses regarding the revenues, expenses, profitability and operations of the Company, and (vii)
information provided to the Company by customers and other third parties under a duty to maintain the confidentiality of such information. Notwithstanding the foregoing, Confidential Information does not include information that: (i) has
been voluntarily disclosed to the public by Company or any Employer, except where such public disclosure has been made by Employee without authorization from Company or Employer; (ii) has been independently developed and disclosed by others,
or (iii) which has otherwise entered the public domain through lawful means. Confidential Information also does not include information related to any claim of sexual harassment or sexual assault and nothing herein restricts the disclosure of
such information. Nothing herein shall prohibit, prevent or restrict the Employee from reporting any allegations of unlawful conduct to federal, state or local officials or to an attorney retained by the Employee.
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| c. |
“Material Contact” means contact in person, by telephone, or by paper or electronic correspondence, or the supervision of those who have such conduct, and which is done in furtherance of the business
interests of the company and within the last 36 months.
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| d. |
“Restricted Territory” consists of the following areas, to the extent such areas have been identified as applicable to the definition of the “Business of the company” above:
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Natural Gas Distribution: The State of New
Jersey and for those employees engaged in or supervising off system sales, the States of New Jersey, New York and Pennsylvania.
Energy Services: The Continental United
States and within a 100 mile radius of the Dawn Storage Hub in Canada.
Clean Energy Ventures: The States of New
Jersey, Rhode Island, Connecticut and New York.
Storage and Transportation: The States of New
Jersey, New York, Connecticut, Pennsylvania, Virginia West Virginia, Mississippi, Alabama, Louisiana and Texas.
Home Services: The State of New Jersey.
| e. |
“Trade Secrets” means a trade secret of the Company as defined by applicable law.
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Exhibit 10.4
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance-Based Restricted Stock Units Agreement
This Performance-Based Restricted Stock Units Agreement (the “Agreement”), which includes the attached “Terms and Conditions of Performance-Based
Restricted Stock Units” (the “Terms and Conditions”) and the attached Exhibit A captioned “Performance Goals and Vesting of Performance-Based Restricted Stock Units”, confirms the grant on November __, 2022 (the “Grant Date”) by NEW JERSEY RESOURCES
CORPORATION, a New Jersey corporation (the “Company”), to ____________________________ (“Employee”), under Sections 6(e), 6(i) and 7 of the 2017 Stock Award and Incentive Plan (the “Plan”), of Performance-Based Restricted Stock Units (the
“Performance-Based Restricted Stock Units”), including rights to dividends paid on the Performance-Based Restricted Stock Units as specified herein, as follows:
Number of Performance-Based Restricted Stock Units Granted:
Performance-Based Restricted Stock Units are
Forfeitable: The Performance-Based Restricted Stock Units are forfeitable until they vest and become non-forfeitable as specified herein.
How Performance-Based Restricted Stock Units
Vest: The Performance-Based Restricted Stock Units, if not previously forfeited, (i) will be earned if and to the extent that the Performance Goal defined on Exhibit A to this Agreement for the Company’s
fiscal year ended September 30, 2023 is achieved, and (ii) will vest and become non-forfeitable as to one-third (1/3) of the Performance-Based Restricted Stock Units earned (rounded down to the nearest whole share) on the last day of each of the
Company’s fiscal years ended September 30, 2023 and September 30, 2024 and as to the remaining Performance-Based Restricted Stock Units earned on the last day of the Company’s fiscal year ended September 30, 2025 (each a “Stated Vesting Date”),
provided in each case the Employee continues to be employed by the Company or a Subsidiary from the Grant Date through the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units, and the Committee
certifies achievement of the Performance Goal for the 2023 fiscal year within 60 days after the end of the 2023 fiscal year. In that event, all earned and vested Performance-Based Restricted Stock Units will be settled within 60 days after the
Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units. In addition, if not previously forfeited, upon a Change in Control prior to the Stated Vesting Date that applies to the applicable tranche of
Performance-Based Restricted Stock Units, the earned Performance-Based Restricted Stock Units (or the number of Performance-Based Restricted Stock Units set forth above if the Change in Control occurs in the Company’s fiscal year ended September
30, 2023) will vest and become non-forfeitable in full and will be settled within 60 days thereafter, provided the Employee continues to be employed by the Company or a Subsidiary from the Grant Date until the Change in Control, if no provision is
made for the continuance, assumption or substitution of the Performance-Based Restricted Stock Units by the Company or its successor in connection with the Change in Control. If provision is made for the continuance, assumption or substitution of
the Performance-Based Restricted Stock Units by the Company or its successor in connection with such a Change in Control, the earned Performance-Based Restricted Stock Units (or the number of the Performance-Based Restricted Stock Units set forth
above if the Change in Control occurs in the Company’s fiscal year ended September 30, 2023) will remain outstanding after the Change in Control occurs and will become vested as of the Stated Vesting Date that applies to the applicable tranche of
Performance-Based Restricted Stock Units and be settled within 60 days thereafter, provided in each case the Employee continues to be employed by the Company or a Subsidiary from the Grant Date through such Stated Vesting Date. If the Performance
Goal for the Company’s 2023 fiscal year is not met (and there is no Change in Control during such 2023 fiscal year), the unearned Performance-Based Restricted Stock Units will be immediately forfeited. In addition, if not previously forfeited, the
earned Performance-Based Restricted Stock Units (or the number of Performance-Based Restricted Stock Units if the Change in Control occurs in the Company’s fiscal year ended September 30, 2023) will vest and become non-forfeitable in connection
with Employee’s Termination of Employment prior to the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units to the extent provided in Section 4 of the attached Terms and Conditions and settled in
accordance with Section 6(a) hereof. If Employee has a Termination of Employment prior to the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units and the earned Performance-Based Restricted Stock
Units (or the number of Performance-Based Restricted Stock Units set forth above if the Change in Control occurs in the fiscal year ended September 30, 2023) do not vest to the extent provided in Section 4 of the attached Terms and Conditions, the
unvested Performance-Based Restricted Stock Units will be immediately forfeited. If Employee has a Termination of Employment prior to the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units and
the Performance-Based Restricted Stock Units are not yet earned at that time, the Performance-Based Restricted Stock Units that have not yet been earned will vest and become non-forfeitable in connection with Employee’s Termination of Employment to
the extent provided in Section 4 of the attached Terms and Conditions and will be earned if and to the extent that the Performance Goal defined in Exhibit A to this Agreement for the Company’s fiscal year ended September 30, 2023 is achieved or
there is a Change in Control in the Company’s fiscal year ended September 30, 2023, and settled in accordance with Section 6(a) hereof, and any such Performance-Based Restricted Stock Units not vested as of the date of Employee’s Termination of
Employment will be immediately forfeited. Forfeited Performance-Based Restricted Stock Units cease to be outstanding and shall be forfeited and reacquired by the Company.
Performance Goals: The Performance Goals upon which the Performance-Based Restricted Stock Units may become earned and eligible to become vested and non-forfeitable, subject to Employee’s continued employment with the Company or a Subsidiary
or as otherwise set forth herein, shall be as specified in Exhibit A hereto.
Further Conditions to Settlement: Notwithstanding any other provision of this Agreement, except as otherwise set forth below, the Company’s obligation to settle the Performance-Based Restricted Stock Units and Employee’s right to distribution of the
Performance-Based Restricted Stock Units will be forfeited immediately upon the occurrence of any one or more of the following events (defined terms are attached hereto as Exhibit B):
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(a) Competitive Employment. In the event that Employee, prior to full settlement of the Performance-Based Restricted Stock Units and within the Restricted Territory, directly or
indirectly, whether on Employee’s own behalf or on behalf of any other person or entity, performs services of the type which are the same as or similar to those conducted, authorized, offered or provided by Employee to the Company within the last
24 months, and which support business activities which compete with the Business of the Company.
(b) Recruitment of Company Employees and Contractors. In the event that Employee, prior to full settlement of the Performance-Based Restricted Stock Units, directly or indirectly,
whether on Employee’s own behalf or on behalf of any other person or entity, solicits or induces any employee or independent contractor of the Company with whom Employee had Material Contact to terminate or lessen such employment or contract with
the Company.
(c) Solicitation of Company Customers. In the event that Employee, prior to full settlement of the Performance-Based Restricted Stock Units, directly or indirectly, whether on
Employee’s own behalf or on behalf of any other person or entity, solicits any actual or prospective customers of the Company with whom Employee had Material Contact for the purpose of selling any products or services which compete with the
Business of the Company.
(d) Solicitation of Company Vendors. In the event that Employee, prior to full settlement of the Performance-Based Restricted Stock Units, directly or indirectly, whether on
Employee’s own behalf or on behalf of any other person or entity, solicits any actual or prospective vendor of the Company with whom Employee had Material Contact for the purpose of purchasing products or services to support business activities
which compete with the Business of the Company.
(e) Breach of Confidentiality. In the event that Employee, at any time prior to full settlement of the Performance-Based Restricted Stock Units, directly or indirectly, divulges or
makes use of any Confidential Information or Trade Secrets of the Company other than in the performance of Employee’s duties for the Company. This provision does not limit the remedies available to the Company under common or statutory law as to
trade secrets or other forms of confidential information, which may impose longer duties of non-disclosure and provide for injunctive relief and damages. Notwithstanding anything herein to the
contrary, nothing herein is intended to or will be used in any way to prevent Employee from providing truthful testimony under oath in a judicial or administrative proceeding or to limit Employee’s right to communicate with a government agency,
as provided for, protected under or warranted by applicable law. The Employee further understands nothing herein limits the Employee’s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor
Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or any other federal, state or local government agency or commission (‘Government Agencies”). Nothing herein limits the Employee’s
ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by the Government Agency, including providing documents or information without notice to the Company. This
Agreement does not limit the Employee’s right to receive an award for information provided to any Government Agency. Notwithstanding anything herein to the contrary, the Employee shall not be held criminally or civilly liable under any federal or
state trade secret law for the disclosure of a Trade Secret that (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or
investigating a suspected violation of law or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if the Employee files a lawsuit for retaliation for reporting a
suspected violation of law, the Employee may disclose the Trade Secret to his or her attorney and use the Trade Secret information in the court proceeding, as long as the Employee files any document containing the Trade Secret under seal and does
not disclose the Trade Secret, except pursuant to court order.
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(f) Return of Property and Information. In the event that prior to full settlement of the Performance-Based Restricted Stock Units Employee fails to return all of the Company’s
property and information (whether confidential or not) within Employee’s possession or control within seven (7) calendar days following the termination or resignation of Employee from employment with the Company. Such property and information
includes, but is not limited to, the original and any copy (regardless of the manner in which it is recorded) of all information provided by the Company to Employee or which Employee has developed or collected in the scope of Employee’s
employment with the Company, as well as all Company-issued equipment, supplies, accessories, vehicles, keys, instruments, tools, devices, computers, cell phones, pagers, materials, documents, plans, records, notebooks, drawings, or papers. Upon
request by the Company, Employee shall certify in writing that Employee has complied with this provision and has permanently deleted all Company information from any computers or other electronic storage devices or media owned by Employee.
Employee may only retain information relating to the Employee’s benefit plans and compensation to the extent needed to prepare Employee’s tax returns.
(g) Disparagement. In the event that prior to full settlement of the Performance-Based Restricted Stock Units Employee makes any statements, either verbally or in writing, that are
disparaging with regard to the Company or any of its subsidiaries or their respective executives and Board members.
(h) Failure to Provide Information. In the event that prior to full settlement of the Performance-Based Restricted Stock Units Employee fails to promptly and fully respond to
requests for information from the Company regarding Employee’s compliance with any of the foregoing conditions.
If it is determined by the Leadership Development and Compensation Committee of the Company’s Board of Directors, in its sole discretion, that any of
the foregoing events have occurred prior to full settlement of the Performance-Based Restricted Stock Units, any unpaid portion of the Performance-Based Restricted Stock Units will be forfeited without any compensation therefor, provided, however,
that none of the foregoing conditions shall restrict any Employee who is a lawyer from practicing law. To the extent any such condition would restrict any Employee who is a lawyer from practicing law or would penalize the Employee for practicing
law, such condition shall not be effective and the Leadership Development and Compensation Committee may not forfeit any of the Performance-Based Restricted Stock Units on account therefor.
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Dividend Rights: Dividends paid on shares of stock covered under the Performance-Based Restricted Stock Units shall be automatically reinvested in additional Performance-Based Restricted Stock Units which shall be subject to the same
terms as the Performance-Based Restricted Stock Units to which the dividends relate, as specified in Section 5 of the Terms and Conditions of Performance-Based Restricted Stock Units.
The Performance-Based Restricted Stock Units are subject to the terms and conditions of the Plan and this Agreement, including the Terms and Conditions
of Performance-Based Restricted Stock Units attached hereto and deemed a part hereof. The number of Performance-Based Restricted Stock Units and the kind of shares of Stock and the other terms and conditions of the Performance-Based Restricted Stock
Units are subject to adjustment in accordance with Section 5 of the attached Terms and Conditions and Section 11(c) of the Plan.
Employee acknowledges and agrees that (i) the Performance-Based Restricted Stock Units are nontransferable, except as provided in Section 3 of the
attached Terms and Conditions and Section 11(b) of the Plan, (ii) the Performance-Based Restricted Stock Units are subject to forfeiture in the event (A) of the Company’s failure to achieve the applicable Performance Goal or undergo a Change in
Control or (B) of Employee’s Termination of Employment in certain circumstances prior to a Stated Vesting Date, as specified in Section 4 of the attached Terms and Conditions, (iii) the foregoing conditions shall apply to the Performance-Based
Restricted Stock Units prior to settlement and (iv) sales and other transfers of shares of Stock will be subject to any Company policy regulating trading by employees and the transfer restrictions set forth in Section 3 of the attached Terms and
Conditions.
Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan.
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IN WITNESS WHEREOF, NEW JERSEY RESOURCES CORPORATION has caused this Agreement to be executed by its officer thereunto duly authorized.
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NEW JERSEY RESOURCES CORPORATION
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By:
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[NAME]
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[Title]
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[NAME]
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[Title]
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TERMS AND CONDITIONS OF PERFORMANCE-BASED RESTRICTED STOCK UNITS
The following Terms and Conditions apply to the Performance-Based Restricted Stock Units granted to Employee by NEW JERSEY RESOURCES CORPORATION (the
“Company”) and to any additional Performance-Based Restricted Stock Units resulting from dividends paid on shares of Stock underlying the Performance-Based Restricted Stock Units (as defined below), if any, as specified in the Performance-Based
Restricted Stock Units Agreement (of which these Terms and Conditions form a part). Certain terms of the Performance-Based Restricted Stock Units, including the number of Performance-Based Restricted Stock Units granted and vesting terms and date(s),
are set forth on the cover page hereto and Exhibit A, which are an integral part of this Agreement.
1. General. The Performance-Based Restricted Stock Units
are granted to Employee under the Company’s 2017 Stock Award and Incentive Plan (the “Plan”), a copy of which has been previously delivered to Employee and/or is available upon request to the Human Resources Department. All of the applicable terms,
conditions and other provisions of the Plan are incorporated by reference herein. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan. If there is any conflict between the provisions of this
document and mandatory provisions of the Plan, the provisions of the Plan govern. By accepting the grant of Performance-Based Restricted Stock Units, Employee agrees to be bound by all of the terms and provisions of the Plan (as presently in effect
or later amended), the rules and regulations under the Plan adopted from time to time, and the decisions and determinations of the Leadership Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) made from time
to time with respect to the Plan or this Agreement.
2. Account for Employee. The Company shall maintain a bookkeeping
account for Employee (the “Account”) reflecting the number of Performance-Based Restricted Stock Units then credited to Employee hereunder as a result of such grant of Performance-Based Restricted Stock Units and any crediting of additional
Performance-Based Restricted Stock Units to Employee pursuant to dividends paid on shares of Stock under Section 5 hereof (“Dividend Equivalents”).
3. Nontransferability.
(a) Until the Performance-Based Restricted Stock Units become vested in accordance with the terms of this Agreement, Employee may not transfer
Performance-Based Restricted Stock Units or any rights hereunder to any third party other than by will or the laws of descent and distribution, except for transfers to a Beneficiary or as otherwise permitted and subject to the conditions under
Section 11(b) of the Plan. This restriction on transfer precludes any sale, assignment, pledge or other encumbrance or disposition of the Performance Share Units (except for forfeitures to the Company).
(b) Any transfer in violation of this Section 3 will be void and of no effect.
4. Termination of Employment. The following provisions will
govern the earning, vesting and forfeiture of the Performance-Based Restricted Stock Units that are outstanding at the time of Employee’s Termination of Employment (as defined below) (i) by the Company without Cause (as defined below) or by the
Employee for Good Reason (as defined below), in either case during the CIC Protection Period (as defined below), or (ii) due to death, Disability (as defined below) or Retirement (as defined below), unless otherwise determined by the Committee
(subject to Section 8(e) hereof):
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(a) Termination by the Company or by Employee in Certain Events. In the event
of Employee’s Termination of Employment, prior to the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units, by the Company without Cause within the CIC Protection Period and other than for Disability
or Retirement, or by Employee for Good Reason within the CIC Protection Period, the outstanding Performance-Based Restricted Stock Units will be vested with respect to no less than a Pro Rata Portion (as defined below) of the Performance-Based
Restricted Stock Units, to the extent earned previously (upon a Change in Control where provision is made for the continuance, assumption or substitution of the Performance-Based Restricted Stock Units by the Company or its successor upon the Change
in Control or otherwise), to the extent not vested previously, and such earned and vested Performance-Based Restricted Stock Units will be settled in accordance with Section 6(a) hereof. In the event of Employee’s Termination of Employment, prior to
the Stated Vesting Date that applies to the applicable tranche of Performance-Based Restricted Stock Units, (i) by the Company for any reason other than Disability or Retirement prior to or after the CIC Protection Period, (iii) by Employee (other
than for Good Reason within the CIC Protection Period or upon Retirement) or (iv) by Employee (other than on Retirement) prior to or after the CIC Protection Period, the then-outstanding Performance-Based Restricted Stock Units not earned and vested
at the date of Employee’s Termination of Employment will be immediately forfeited.
(b) Death, Disability or Retirement. In the event of Employee’s Termination of Employment, prior to September 30, 2023 and prior to a Change in Control, due to Employee’s death, Disability or Retirement, the outstanding Performance-Based
Restricted Stock Units will be vested with respect to no less than a Pro Rata Portion of the Performance-Based Restricted Stock Units that has not become earned previously, to the extent not previously vested, and such vested Performance-Based
Restricted Stock Units will continue to be subject to the Performance Goal and will be eligible to be earned if and to the extent that the Performance Goal is achieved or there is a Change in Control prior to September 30, 2023 and settled in
accordance with Section 6(a) hereof. In the event of Employee’s Termination of Employment, after September 30, 2023 or after a Change in Control that occurs in the Company’s fiscal year ended September 30, 2023, due to Employee’s death, Disability
or Retirement, the outstanding Performance Share Units will be vested with respect to no less than a Pro Rata Portion of the Performance-Based Restricted Stock Units, to the extent earned previously, to the extent not vested previously, and such
earned and vested Performance-Based Restricted Stock Units will be settled in accordance with Section 6(a) hereof. Any portion of the then-outstanding Performance-Based Restricted Stock Units not vested at or before the date of Employee’s
Termination of Employment will be forfeited.
(d) Certain Definitions. The following definitions apply for purposes of this
Agreement:
(i) “Cause” has the same definition as under any employment or similar agreement between the Company and Employee or, if no such agreement exists or if
such agreement does not contain any such definition, Cause means (i) Employee’s conviction of a felony or the entering by Employee of a plea of nolo contendere to a felony charge, (ii) Employee’s gross neglect, willful malfeasance or willful gross misconduct in connection with his or her employment which has had a significant adverse effect on the business of the Company
and its subsidiaries, unless Employee reasonably believed in good faith that such act or non-act was in or not opposed to the best interest of the Company, or (iii) repeated material violations by Employee of the duties and obligations of Employee’s
position with the Company which have continued after written notice thereof from the Company, which violations are demonstrably willful and deliberate on Employee’s part and which result in material damage to the Company’s business or reputation.
(ii) “CIC Protection Period” means the two-year period beginning on the date of a Change in Control and ending on the day before the second annual
anniversary of the date of the Change in Control.
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(iii) “Disability” means Employee has been incapable of substantially fulfilling the positions, duties, responsibilities and obligations of his
employment because of physical, mental or emotional incapacity resulting from injury, sickness or disease for a period of at least six consecutive months. The Company and Employee shall agree on the identity of a physician to resolve any question as
to Employee’s disability. If the Company and Employee cannot agree on the physician to make such determination, then the Company and Employee shall each select a physician and those physicians shall jointly select a third physician, who shall make
the determination. The determination of any such physician shall be final and conclusive for all purposes of this Agreement. Only the Company can initiate a Termination of Employment due to Disability.
(iv) “Good Reason” has the same definition as under any employment or similar agreement between the Company and Employee; but, if no such agreement
exists or if any such agreement does not contain or reference any such term, Good Reason shall not apply to the Employee for purposes of this Agreement.
(v) "Pro Rata Portion" means, for each tranche of Performance-Based Restricted Stock Units, a fraction, the numerator of which is the number of days that
have elapsed from the first day of the Company’s fiscal year which includes the Grant Date to the date of Employee's Termination of Employment and the denominator of which is the number of days from the first day of the Company’s fiscal year which
includes the Grant Date to the Stated Vesting Date for that tranche. A "tranche" is that portion of the Performance-Based Restricted Stock Units that have a unique Stated Vesting Date.
(vii) “Retirement” means the Employee attains age 65, or age 55 with 20 or more years of service.
(viii) “Subsidiary” means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code (“Section 424(f) Corporation”) and
any partnership, limited liability company or joint venture in which either the Company or a Section 424(f) Corporation is at least a fifty percent (50%) equity participant.
(ix) “Termination of Employment” and “Termination” means the earliest time at which Employee is not employed by the Company or a Subsidiary and is not
serving as a non-employee director of the Company or a Subsidiary.
(e) Termination by the Company for Cause. In the event of Employee’s
Termination of Employment by the Company for Cause, the portion of the then-outstanding Performance-Based Restricted Stock Units not earned and vested prior to such time will be forfeited immediately upon notice to Employee that the Company will
terminate the Employee’s employment for Cause.
5. Dividend Equivalents and Adjustments.
(a) Dividend Equivalents. Dividend Equivalents will be credited on
Performance-Based Restricted Stock Units (other than Performance-Based Restricted Stock Units that, at the relevant record date, previously has vested or been forfeited) and deemed reinvested in additional shares of Performance-Based Restricted Stock
Units. Dividend Equivalents will be credited as follows, except that the Company may vary the manner of crediting (for example, by crediting cash dividend equivalents rather than additional Performance-Based Restricted Stock Units) for administrative
convenience:
(i) Cash Dividends. If the Company declares and pays a dividend or distribution
on shares of Stock in the form of cash, then additional Performance-Based Restricted Stock Units shall be credited to Employee as of the payment date of such cash dividend or distribution (or settled as of the payment date of such cash dividend or
distribution if the Performance-Based Restricted Stock Units are to be settled before the payment date) equal to the number of outstanding Performance-Based Restricted Stock Units as of the relevant record date multiplied by the amount of cash paid
per share of Stock in such dividend or distribution divided by the Fair Market Value of a share of Stock at the payment date for such dividend or distribution (rounded down to the nearest whole share).
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(ii) Non-Share Dividends. If the Company declares and pays a dividend or
distribution on shares of Stock in the form of property other than shares of Stock, then a number of additional shares of Performance-Based Restricted Stock Units shall be credited to Employee as of the payment date of such cash dividend or
distribution (or settled as of the payment date of such cash dividend or distribution if the Performance-Based Restricted Stock Units are to be settled before the payment date) equal to the number of shares of Performance-Based Restricted Stock Units
credited to the Employee as of the record date for such dividend or distribution multiplied by the fair market value of such property actually paid as a dividend or distribution on each outstanding share of Stock at such payment date, divided by the
Fair Market Value of a share of Stock at such payment date for such dividend or distribution (rounded down to the nearest whole share).
(iii) Share Dividends and Splits. If the Company declares and pays a dividend
or distribution on shares of Stock in the form of additional shares of Stock, or there occurs a forward split of shares of Stock, then a number of additional shares of Performance-Based Restricted Stock Units shall be credited to Employee as of the
payment date for such dividend or distribution or forward split (or settled as of the payment date of such cash dividend or distribution if the Performance-Based Restricted Stock Units are to be settled before the payment date) equal to the number of
shares of Performance-Based Restricted Stock Units credited to the Employee as of the record date for such dividend or distribution or split multiplied by the number of additional shares of Stock actually paid as a dividend or distribution or issued
in such split in respect of each outstanding share of Stock (rounded down to the nearest whole share)
(b) Adjustments. The number of shares of Performance-Based Restricted Stock
Units credited to Employee shall be appropriately adjusted in order to prevent dilution or enlargement of Employee’s rights with respect to Performance-Based Restricted Stock Units or to reflect any changes in the number of outstanding shares of
Stock resulting from any event referred to in Section 11(c) of the Plan, taking into account any Performance-Based Restricted Stock Units credited to Employee in connection with such event under Section 5 hereof. In furtherance of the foregoing, in
the event of an equity restructuring, as defined in ASC Topic 718, which affects the shares of Stock, Employee shall have a legal right to an adjustment to Employee’s Performance-Based Restricted Stock Units which shall preserve without enlarging the
value of the Performance-Based Restricted Stock Units, with the manner of such adjustment to be determined by the Committee in its discretion.
(c) Risk of Forfeiture and Delivery of Performance-Based Restricted Stock Units
Resulting from Dividend Equivalents and Adjustments. Performance-Based Restricted Stock Units which directly or indirectly results from Dividend Equivalents on or adjustments to Performance-Based Restricted Stock Units granted hereunder
shall be subject to the same risk of forfeiture and other conditions as apply to the granted Performance-Based Restricted Stock Units to which the Dividend Equivalents or adjustments relate and will be subject to the same terms as such granted
Performance-Based Restricted Stock Units (unless the Performance-Based Restricted Stock Units are to be settled prior to the payment date of the Dividend Equivalents or adjustments, in which case the Dividend Equivalents or the date of such
adjustments will be settled at the payment date of the dividends or the date of such adjustments (and in no event later than 60 days after the Performance-Based Restricted Stock Units otherwise are to be settled)).
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6. Settlement and Deferral.
(a) Settlement Date. Except as otherwise set forth above under “Further
Conditions to Settlement,” Performance-Based Restricted Stock Units granted hereunder that have become earned and vested, together with Performance-Based Restricted Stock Units credited as a result of Dividend Equivalents with respect thereto, to the
extent earned and vested, shall be settled by delivery of one share of Stock for each Performance-Based Restricted Stock Unit being settled at the time specified herein. Settlement of earned and vested Performance-Based Restricted Stock Units granted
hereunder shall occur at the Stated Vesting Date (with shares to be delivered within 60 days after the Stated Vesting Date); provided, however, that settlement of earned and vested Performance-Based Restricted Stock Units shall occur within 60 days
after a Change in Control if no provision is made for the continuance, assumption or substitution of the Performance-Based Restricted Stock Units by the Company or its successor in connection with the Change in Control; and provided further, that
settlement shall be deferred if so elected by Employee in accordance with Section 6(b) hereof subject to Section 6(c) hereof. Settlement of Performance-Based Restricted Stock Units which directly or indirectly result from Dividend Equivalents on
Performance-Based Restricted Stock Units granted hereunder generally shall occur at the time of settlement of the related Performance-Based Restricted Stock Units except as otherwise described above.
(b) Elective Deferral. The Committee may determine to permit Employee to elect
to defer settlement (or re-defer) if such election would be permissible under Section 11(k) of the Plan and Code Section 409A. In addition to any applicable requirements under Code Section 409A, any such deferral election shall be made only while
Employee remains employed and at a time permitted under Code Section 409A. The form under which an election is made shall set forth the time and form of payment of such amount deferred. Any amount deferred shall be subject to a six-month delay upon
payment if required under Section 11(k)(i)(F) of the Plan. Any elective deferral will be subject to such additional terms and conditions as the Senior Vice President, Human Resources, or the officer designated by the Company as responsible for
administration of the Agreement, may reasonably impose.
(c) Compliance with Code Section 409A. Other provisions of this Agreement
notwithstanding, because the Performance-Based Restricted Stock Units will constitute a "deferral of compensation" under Section 409A of the Code (“Code Section 409A”) as presently in effect or hereafter amended (i.e., the Performance-Based
Restricted Stock Units are not excluded or exempted under Code Section 409A or a regulation or other official governmental guidance thereunder; Note: an elective deferral under Section 6(b) would cause the Performance-Based Restricted Stock Units, if
not already, to be a deferral of compensation subject to Code Section 409A after the deferral), such Performance-Based Restricted Stock Units will be considered a 409A Award under the Plan and shall be subject to the additional requirements set forth
in Section 11(k) of the Plan including without limitation that (i) Termination of Employment shall be construed consistent with the meaning of a Separation from Service and (ii) a Change in Control under the Agreement shall be construed consistent
with the meaning of a 409A Ownership/Control Change.
7. Employee Representations and Warranties Upon Settlement. As a condition to the grant, vesting or settlement of Performance-Based Restricted Stock Units, the
Company may require Employee (i) to make any representation or warranty to the Company as may be required under any applicable law or regulation and (ii) to execute a release from claims against the Company arising at or before the date of the
release, in such form as may be specified by the Company, and not revoke such release prior the expiration of any applicable revocation period, all within 60 days after Termination of Employment.
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8. Miscellaneous.
(a) Binding Agreement; Written Amendments. This Agreement shall be binding upon
the heirs, executors, administrators and successors of the parties. This Agreement constitutes the entire agreement between the parties with respect to the Performance-Based Restricted Stock Units and supersedes any prior agreements or documents with
respect to the Performance-Based Restricted Stock Units. No amendment or alteration of this Agreement which may impose any additional obligation upon the Company shall be valid unless expressed in a written instrument duly executed in the name of the
Company, and no amendment, alteration, suspension or termination of this Agreement which may materially impair the rights of Employee with respect to the Performance-Based Restricted Stock Units shall be valid unless expressed in a written instrument
executed by Employee.
(b) No Promise of Employment. The Performance-Based Restricted Stock Units and
the granting thereof shall not constitute or be evidence of any agreement or understanding, express or implied, that Employee has a right to continue as an officer or employee of the Company or any Subsidiary for any period of time or at any
particular rate of compensation.
(c) Governing Law. The validity, construction, and effect of this Agreement
shall be determined in accordance with the laws (including those governing contracts) of the State of New Jersey, without giving effect to principles of conflicts of laws, and applicable federal law.
(d) Fractional Performance-Based Restricted Stock Units and Shares. The number
of Performance-Based Restricted Stock Units credited to Employee shall not include any fractional shares. The Committee, in its sole discretion, may either (i) round the fractional shares to be credited up to the nearest whole Share or (ii) provide
that fractional shares shall be paid in cash to Employee at the time the shares of Stock otherwise would have been delivered.
(e) Tax Withholding. Unless otherwise determined by the Committee, or Employee
has elected at least 90 days prior to payout to satisfy the tax obligations in cash by other means, at the time of vesting and/or settlement, the Company may withhold from any payment relating to the Performance-Based Restricted Stock Units,
including from a vesting or distribution of Stock thereunder, or any payroll or other payment to the Employee, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving the Performance-Based
Restricted Stock Units, and to take such other action as the Committee may deem advisable to enable the Company and Employee to satisfy obligations for the payment of withholding taxes and other tax obligations relating to the Performance-Based
Restricted Stock Units. The Company shall first withhold any cash payable upon settlement and then may withhold or receive whole shares of Stock or other property and to make cash payments in respect thereof in satisfaction of the Employee's
withholding obligations, either on a mandatory or elective basis in the discretion of the Committee, or in satisfaction of other tax obligations. Other provisions of the Plan notwithstanding, only the minimum amount of Stock deliverable in
connection with the Performance-Based Restricted Stock Units necessary to satisfy statutory withholding requirements will be withheld unless withholding of any additional amount of Shares will not result in additional accounting expense to the
Company and is permitted by the Committee.
(f) Section 409A. It is intended that the Performance-Based Restricted Stock
Units granted hereunder be exempt from the requirements applicable to nonqualified deferred compensation subject to Section 409A of the Code. For purposes of this Agreement, any action taken hereunder shall be undertaken in a manner that will not
negatively affect the status of the Performance-Based Restricted Stock Units as exempt from treatment as nonqualified deferred compensation subject to Section 409A of the Code unless this action otherwise complies with Section 409A of the Code to the
extent necessary to avoid non-compliance therewith.
(g) Unfunded Obligations. The grant of Performance-Based Restricted Stock Units
and any provision hereof shall not create in Employee any right to, or claim against any, specific assets of the Company, nor result in the creation of any trust or escrow account for Employee.
12
(h) Notices. Any notice to be given the Company under this Agreement shall be
addressed to the Company at its principal executive offices, in care of the Senior Vice President, Human Resources, or the officer designated by the Company as responsible for administration of the Agreement, and any notice to Employee shall be
addressed to Employee at Employee’s address as then appearing in the records of the Company.
(i) Shareholder Rights. Employee and any Beneficiary shall have no rights of a
shareholder with respect to outstanding shares of Stock relating to Performance-Based Restricted Stock Units (including the right to vote the Stock, except for the right to receive dividends thereon, subject to mandatory reinvestment of the dividends
in additional Performance-Based Restricted Stock Units as specified herein) covered by this Agreement prior to vesting or forfeiture of the shares of Performance-Based Restricted Stock Units except as otherwise specified herein.
13
Exhibit A
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Performance Goals and Vesting of Performance-Based Restricted Stock Units
The number of shares of Performance-Based Restricted Stock Units set forth in the Agreement may become earned and eligible to become vested and
non-forfeitable as of the applicable Stated Vesting Date, subject to the other terms of the Agreement, if the Company’s “Net Financial Earnings per Share” (“NFEPS”) for the fiscal year ending on September 30, 2023 equals or exceeds $ .
“NFEPS” shall be the NFE per basic share of Common Stock that the Company reports on a quarterly and annual basis to the public and in its quarterly
reports on Form 10-Q and annual report on Form 10-K that are filed with the SEC.
Determinations of the Committee regarding NFEPS will be final and binding on Employee. “Net Financial Earnings” or “NFE” is a financial measure not
calculated in accordance with generally accepted accounting principles that the Company reports on a quarterly and annual basis to the public and in its quarterly reports on Form 10-Q and annual reports on Form 10-K that are filed with the Securities
and Exchange Commission (“SEC”).
14
Exhibit B
NEW JERSEY RESOURCES CORPORATION
2017 Stock Award and Incentive Plan
Definitions Under Further Conditions to Settlement
| a. |
“Business of the Company” means the following areas of its business which are selected below, which Employee acknowledges are areas of the Company’s business in which Employee has responsibilities:
|
(check as applicable)
| ___ |
Natural Gas Distribution: Consists of New Jersey Natural Gas Company
(“NJNG”), a natural gas utility company that provides regulated retail natural gas service to residential and commercial customers in central and northern New Jersey and participates in the off-system sales and capacity release markets, and
also includes investments in renewable natural gas and green hydrogen technologies.
|
| ___ |
Energy Services: Maintains and transacts around a portfolio of physical
assets consisting of natural gas storage and transportation contracts and also provides wholesale energy management services to other energy companies and natural gas producers in market areas including states from the Gulf Coast and
Mid-continent regions to the Appalachian and Northeast regions, the West Coast and Canada.
|
| ___ |
Clean Energy Ventures: Investor, owner, and operator in the renewable
energy sector, including, but not limited to, investments in residential and commercial rooftop and ground mount solar systems.
|
| ___ |
Storage and Transportation: Includes investments in
natural gas transportation and storage assets and is comprised of the following: Steckman Ridge, which is a partnership that owns and operates a 17.7 Bcf natural gas storage facility, with up to 12 Bcf working capacity, in western
Pennsylvania that is 50 percent owned by a Company Subsidiary; Leaf River Energy Center, a natural gas storage facility located in southeastern Mississippi with a combined working natural gas storage capacity of 32.2 million dekatherms; and
Adelphia Gateway, an 84-mile pipeline in southeastern Pennsylvania.
|
| ___ |
Home Services: Consists of NJR Home Services Company, which provides
Heating, Ventilating, and Air Conditioning (“HVAC”) service, sales and installation of appliances, as well as installation of solar equipment.
|
| b. |
“Confidential Information” means all valuable and/or proprietary information (in oral, written, electronic or other forms) belonging to or pertaining to the Company, its customers and vendors, that
is not generally known or publicly available, and which would be useful to competitors of the Company or otherwise damaging to the Company if disclosed. Confidential Information may include, but is not necessarily limited to: (i) the
identity of the Company’s customers or potential customers, their purchasing histories, and the terms or proposed terms upon which the Company offers or may offer its products and services to such customers, (ii) the identity of the Company’s
vendors or potential vendors, and the terms or proposed terms upon which the Company may purchase products and services from such vendors, (iii) technology used by the Company to provide its services, (iv) the terms and conditions upon which
the Company employs its employees and independent contractors, (v) marketing and/or business plans and strategies, (vi) financial reports and analyses regarding the revenues, expenses, profitability and operations of the Company, and (vii)
information provided to the Company by customers and other third parties under a duty to maintain the confidentiality of such information. Notwithstanding the foregoing, Confidential Information does not include information that: (i) has
been voluntarily disclosed to the public by Company or any Employer, except where such public disclosure has been made by Employee without authorization from Company or Employer; (ii) has been independently developed and disclosed by others,
or (iii) which has otherwise entered the public domain through lawful means. Confidential Information also does not include information related to any claim of sexual harassment or sexual assault and nothing herein restricts the disclosure of
such information. Nothing herein shall prohibit, prevent or restrict the Employee from reporting any allegations of unlawful conduct to federal, state or local officials or to an attorney retained by the Employee.
|
15
| c. |
“Material Contact” means contact in person, by telephone, or by paper or electronic correspondence, or the supervision of those who have such conduct, and which is done in furtherance of the business
interests of the company and within the last 36 months.
|
| d. |
“Restricted Territory” consists of the following areas, to the extent such areas have been identified as applicable to the definition of the “Business of the company” above:
|
Natural Gas Distribution: The State of New
Jersey and for those employees engaged in or supervising off system sales, the States of New Jersey, New York and Pennsylvania.
Energy Services: The Continental United
States and within a 100 mile radius of the Dawn Storage Hub in Canada.
Clean Energy Ventures: The States of New
Jersey, Rhode Island, Connecticut and New York.
Storage and Transportation: The States of New
Jersey, New York, Connecticut, Pennsylvania, Virginia, West Virginia, Mississippi, Louisiana, Alabama and Texas.
Home Services: The State of New Jersey.
| e. |
“Trade Secrets” means a trade secret of the Company as defined by applicable law.
|
16
Exhibit 99.1
NEW JERSEY RESOURCES REPORTS FISCAL 2022 FOURTH-QUARTER
AND YEAR END RESULTS
Introduces Fiscal 2023 Guidance and Maintains its Long-term Projected Growth Rate
WALL, N.J., November 17, 2022 — Today, New Jersey Resources Corporation (NYSE: NJR) reported
results for the fourth quarter and year ended fiscal 2022. Highlights include:
| • |
Consolidated net income of $274.9 million for fiscal
2022, compared with net income of $117.9 million in fiscal 2021
|
| • |
Consolidated net financial earnings (NFE), a non-GAAP financial measure, of $240.3 million for fiscal 2022, or $2.50 per share, compared to NFE of $207.7 million, or $2.16 per share, in fiscal 2021
|
| • |
Achieves highest end of previously provided $2.40 to $2.50 guidance range, which was raised twice during fiscal 2022 due to strong performance across its portfolio of energy infrastructure businesses, including New Jersey Natural Gas Company (NJNG)
|
| • |
Increased fiscal 2023 annual dividend by 7.6 percent to $1.56 per share
|
| • |
Completed construction and placed Adelphia Gateway pipeline into service
|
Outlook for Fiscal 2023
| • |
Introduces fiscal 2023 net financial earnings per share (NFEPS) guidance range of $2.42 to $2.52
|
| • |
Maintains long-term projected NFEPS growth rate of 7 to 9 percent(1)
|
Fourth-quarter fiscal 2022 net income totaled $54.5 million, or $0.57
per share, compared with a net loss of $(1.1) million, or $(0.01) per share, during the same
period in fiscal 2021. Fiscal 2022 net income totaled $274.9 million, or $2.86 per share, compared with
$117.9 million, or $1.23 per share, in fiscal 2021.
Fourth-quarter fiscal 2022 NFE totaled $47.9 million, or $0.50 per
share, compared to NFE of $6.6 million, or $0.07 per share, during the same period in fiscal
2021. Fiscal 2022 NFE totaled $240.3 million, or $2.50 per share, compared with $207.7 million, or $2.16
per share in fiscal 2021.
Steve Westhoven, President and CEO, stated, "Fiscal 2022 was an outstanding year for NJR. We took advantage of tightening energy markets across our complementary
portfolio of businesses, allowing us to raise guidance two times during the fiscal year. We also made progress in executing our strategic growth objectives, highlighted by placing the Adelphia Gateway pipeline into service. This represented an
important milestone for our company, and will help provide reliable energy to a capacity constrained region, which includes the Philadelphia metro area."
Key Performance Metrics
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
($ in Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
Net income (loss)
|
$
|
54,522
|
$
|
(1,133
|
)
|
$
|
274,922
|
$
|
117,890
|
|||||||
|
Basic EPS
|
$
|
0.57
|
$
|
(0.01
|
)
|
$
|
2.86
|
$
|
1.23
|
|||||||
|
Net financial earnings
|
$
|
47,896
|
$
|
6,599
|
$
|
240,321
|
$
|
207,712
|
||||||||
|
Basic net financial (loss) earnings per share
|
$
|
0.50
|
$
|
0.07
|
$
|
2.50
|
$
|
2.16
|
||||||||
|
(1)
|
NFEPS long-term annual growth projections are based on the midpoint of the $2.20 - $2.30 initial guidance range for fiscal 2022, provided on February 1, 2021
|
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 2 of 13
|
A reconciliation of net income to NFE for the three and twelve months ended September 30, 2022 and 2021, is provided below.
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
Net income
|
$
|
54,522
|
$
|
(1,133
|
)
|
$
|
274,922
|
$
|
117,890
|
|||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(1,846
|
)
|
40,576
|
(59,906
|
)
|
54,203
|
||||||||||
|
Tax effect
|
439
|
(9,647
|
)
|
14,248
|
(12,887
|
)
|
||||||||||
|
Effects of economic hedging related to natural gas inventory
|
(5,221
|
)
|
(30,150
|
)
|
19,939
|
(42,405
|
)
|
|||||||||
|
Tax effect
|
1,241
|
7,166
|
(4,738
|
)
|
10,078
|
|||||||||||
|
(Gain on) impairment of equity method investment
|
(1,500
|
)
|
—
|
(5,521
|
)
|
92,000
|
||||||||||
|
Tax effect
|
374
|
767
|
1,377
|
(11,167
|
)
|
|||||||||||
|
NFE tax adjustment
|
(113
|
)
|
(980
|
)
|
—
|
—
|
||||||||||
|
Net financial earnings
|
$
|
47,896
|
$
|
6,599
|
$
|
240,321
|
$
|
207,712
|
||||||||
|
Weighted Average Shares Outstanding
|
||||||||||||||||
|
Basic
|
96,235
|
96,198
|
96,100
|
96,227
|
||||||||||||
|
Diluted
|
96,630
|
96,198
|
96,488
|
96,560
|
||||||||||||
|
Basic earnings (loss) per share
|
$
|
0.57
|
$
|
(0.01
|
)
|
$
|
2.86
|
$
|
1.23
|
|||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(0.02
|
)
|
0.42
|
(0.62
|
)
|
0.56
|
||||||||||
|
Tax effect
|
0.01
|
(0.10
|
)
|
0.15
|
(0.13
|
)
|
||||||||||
|
Effects of economic hedging related to natural gas inventory
|
(0.05
|
)
|
(0.31
|
)
|
0.21
|
(0.44
|
)
|
|||||||||
|
Tax effect
|
0.01
|
0.07
|
(0.05
|
)
|
0.10
|
|||||||||||
|
(Gain on) impairment of equity method investment
|
(0.02
|
)
|
—
|
(0.06
|
)
|
0.96
|
||||||||||
|
Tax effect
|
—
|
0.01
|
0.01
|
(0.12
|
)
|
|||||||||||
|
NFE tax adjustment
|
—
|
(0.01
|
)
|
—
|
—
|
|||||||||||
|
Basic NFE per share
|
$
|
0.50
|
$
|
0.07
|
$
|
2.50
|
$
|
2.16
|
||||||||
NFE is a measure of earnings based on the elimination of timing differences to effectively match the earnings effects of the economic hedges with the physical sale of
natural gas, Solar Renewable Energy Certificates (SRECs) and foreign currency contracts. Consequently, to reconcile net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item.
Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the
derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the
carrying value of our investment. These are not indicative of the Company's performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 3 of 13
|
A table detailing NFE for the three and twelve months ended September 30, 2022 and 2021, is provided below.
Net financial earnings (loss) by Business Unit
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
New Jersey Natural Gas
|
$
|
(16,387
|
)
|
$
|
(24,214
|
)
|
$
|
140,124
|
$
|
107,375
|
||||||
|
Clean Energy Ventures (CEV)
|
57,813
|
40,861
|
39,403
|
16,789
|
||||||||||||
|
Storage and Transportation
|
11,341
|
2,440
|
22,454
|
13,046
|
||||||||||||
|
Energy Services
|
(3,383
|
)
|
(14,384
|
)
|
39,121
|
71,117
|
||||||||||
|
Home Services and Other
|
(1,894
|
)
|
(1,127
|
)
|
(781
|
)
|
(826
|
)
|
||||||||
|
Subtotal
|
47,490
|
3,576
|
240,321
|
207,501
|
||||||||||||
|
Eliminations
|
406
|
3,023
|
—
|
211
|
||||||||||||
|
Total
|
$
|
47,896
|
$
|
6,599
|
$
|
240,321
|
$
|
207,712
|
||||||||
Fiscal 2023 NFE Guidance:
NJR is introducing fiscal 2023 NFE guidance of $2.42 to $2.52, which represents 9.8 percent year-over-year growth
over the midpoint of the originally provided fiscal 2022 guidance range of $2.20 to $2.30, subject
to the risks and uncertainties identified below under "Forward-Looking Statements." The following chart represents NJR’s current expected contributions from its business segments for fiscal 2023:
|
Company
|
Expected Fiscal 2023
Net Financial Earnings
Contribution
|
|
New Jersey Natural Gas
|
55 to 60 percent
|
|
Clean Energy Ventures
|
20 to 25 percent
|
|
Storage and Transportation
|
4 to 8 percent
|
|
Energy Services
|
15 to 20 percent
|
|
Home Services and Other
|
0 to 1 percent
|
In providing fiscal 2023 NFE
guidance, management is aware there could be differences between reported GAAP earnings and NFE due to matters such as, but not limited to, the positions of our energy-related derivatives. Management is not able to reasonably estimate the aggregate
impact or significance of these items on reported earnings and, therefore, is not able to provide a reconciliation to the corresponding GAAP equivalent for its operating earnings guidance without unreasonable efforts.
New Jersey Natural Gas
NJNG reported Fiscal 2022 NFE of $140.1 million, compared to NFE of $107.4 million during fiscal 2021. Fourth-quarter fiscal 2022 net financial loss was
$(16.4) million, compared to net financial loss of $(24.2) million during the same period in fiscal 2021. The improvement for both periods was due primarily to higher base rates, which became effective on December 1, 2021.
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 4 of 13
|
Customer Growth:
| • |
NJNG added 7,808 new customers during fiscal 2022,
compared with 7,854 new customers added in fiscal 2021. NJNG expects these new customers
to contribute approximately $6.5 million of incremental utility gross margin on an annualized basis.
|
Infrastructure Update:
| • |
NJNG's Infrastructure Investment Program (IIP) is a five-year, $150 million accelerated recovery program that began in fiscal 2021. IIP consists of a series of infrastructure projects designed to enhance the safety and reliability of NJNG's
natural gas distribution system. During fiscal 2022 NJNG spent $32.3 million under the program on various distribution system reinforcement projects. On
March 31, 2022, the Company filed its first rate recovery request with the BPU. On July 13, 2022, NJNG updated the filing with actual information through June 30, 2022, seeking recovery for $28.9 million of investments, including AFUDC, from November 30, 2020 through June 30, 2022. On September 7, 2022, the BPU issued an Order approving a stipulation of settlement effective October 1, 2022.
|
Basic Gas Supply Service (BGSS) Incentive Programs:
BGSS incentive programs contributed $7.5 million to utility gross margin in the fourth-quarter of fiscal 2022, compared with $3.5 million during the same period in fiscal 2021.
In fiscal 2022, these programs contributed $19.6 million to utility gross margin, compared with $13.4 million during fiscal 2021.
The increase was due primarily to higher margins from off-system sales and storage incentive, partially offset by lower capacity release volumes.
For more information on utility gross margin, please see "Non-GAAP Financial Information" below.
Energy-Efficiency Programs:
SAVEGREEN invested $53.3 million in fiscal 2022 in energy-efficiency upgrades for their customers' homes and businesses, NJNG’s largest ever annual investment in the program. NJNG recovered $25.8
million of its outstanding investments during fiscal 2022 through its energy efficiency rate.
Clean Energy Ventures
CEV reported fiscal 2022 NFE of $39.4 million, compared with NFE of $16.8 million during fiscal 2021. Fourth-quarter fiscal 2022 NFE were $57.8
million, compared to NFE of $40.9 million during the same period in fiscal 2021.
The improvement for both periods was due primarily to higher SREC and electricity revenue, partially offset by higher operating expenses and income tax provision.
As of September 30, 2022, Clean Energy Ventures had approximately 386.6 megawatts (MW) of solar
capacity in service in New Jersey, Rhode Island, New York and Connecticut. CEV has over 762 MW of potential capital projects under construction, under exclusivity or under
contract.
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 5 of 13
|
Storage and Transportation
Storage and Transportation reported fiscal 2022 NFE of $22.5 million, compared with NFE of $13.0 million during fiscal 2021. Fourth-quarter fiscal 2022 NFE
were $11.3 million, compared with NFE of $2.4 million during the same period in fiscal 2021.
The increase in both periods was due primarily to
increased operating revenue at Leaf River and higher transportation revenue at Adelphia Gateway, partially offset by increased O&M and depreciation expenses.
| • |
Adelphia Gateway Fully Placed into Service - Adelphia Gateway is an 84-mile pipeline running from Marcus Hook to Martins Creek, Pennsylvania, originally built as an oil pipeline, which has now been repurposed to deliver natural gas to the
Philadelphia and New Jersey markets.
|
Energy Services
Energy Services reported fiscal 2022 NFE of $39.1 million, compared with NFE of $71.1 million during fiscal 2021. The decrease was due primarily to price volatility related to the extreme
weather in the mid-continent and southern regions of the U.S. during February 2021, which did not reoccur to the same extent during 2022, partially offset by revenues from the Asset Management Agreements (AMAs) which commenced in November 2021.
Fourth-quarter fiscal 2022 net financial loss was $(3.4) million, compared with a net financial loss of $(14.4) million for the same period last fiscal year. The improvement for the fourth quarter of fiscal 2022 compared to the prior
year period was due primarily to the recognition of revenues from the AMAs, which became effective during the first quarter of fiscal 2022, as well as higher financial margin generated from storage and transportation assets due to periods of
volatility across the United States during the summer, partially offset by higher O&M expense.
Home Services and Other Operations
Home Services and Other Operations reported fiscal 2022 net financial loss of $(0.8) million, which was unchanged compared to the prior year. Fourth-quarter fiscal 2022 net financial loss was $(1.9) million compared to a net financial loss of $(1.1) million for the same period in fiscal 2021.
Capital Expenditures and Cash Flows:
NJR is committed to maintaining a strong financial profile.
| • |
During fiscal 2022, capital expenditures were $569.2 million, including accruals, of which $282.2 million were related to NJNG, compared with $682.9 million, of which $468.3
million were related to NJNG, during fiscal 2021. The decrease in capital expenditures was primarily due to the completion of the Southern Reliability Link (SRL) project, which was placed into service in August 2021.
|
| • |
During fiscal 2022, cash flows from operations were $323.5 million, compared with cash flows from
operations of $391.0 million during fiscal 2021. The decrease in
operating cash flows was due to higher working capital requirements as a result of rising energy prices and outsized performance at Energy Services during February 2021 that did not reoccur at similar
levels during fiscal 2022.
|
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 6 of 13
|
Forward-Looking Statements:
This earnings release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. NJR cautions readers that the assumptions forming the basis for forward-looking statements include many factors that are beyond NJR’s ability
to control or estimate precisely, such as estimates of future market conditions and the behavior of other market participants. Words such as “anticipates,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “believes,” “should”
and similar expressions may identify forward-looking statements and such forward-looking statements are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential
effect upon NJR. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions and beliefs or that the effect of future developments on NJR will be those anticipated by management.
Forward-looking statements in this earnings release include, but are not limited to, certain statements regarding NJR’s NFEPS guidance for fiscal 2023, forecasted contribution of business segments to NJR’s NFE for fiscal 2023, customer growth at
NJNG, potential CEV capital projects through 2027, infrastructure programs and investments future decarbonization opportunities including IIP, the outcome of future Base Rate Cases with the BPU, Asset Management Agreements, and other legal and
regulatory expectations.
Additional information and factors that could cause actual results to differ materially from NJR’s expectations are contained in NJR’s filings with
the SEC, including NJR’s Annual Reports on Form 10-K and subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other SEC filings, which are available at the SEC’s web site, http://www.sec.gov. Information included in
this earnings release is representative as of today only and while NJR periodically reassesses material trends and uncertainties affecting NJR's results of operations and financial condition in connection with its preparation of management's
discussion and analysis of results of operations and financial condition contained in its Quarterly and Annual Reports filed with the SEC, NJR does not, by including this statement, assume any obligation to review or revise any particular
forward-looking statement referenced herein in light of future events.
Non-GAAP Financial Information:
This earnings release includes the non-GAAP financial measures NFE/net financial loss, NFE per basic share, financial margin and utility gross margin.
A reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. As an indicator of NJR’s operating performance, these measures should not
be considered an alternative to, or more meaningful than, net income or operating revenues as determined in accordance with GAAP. This information has been provided pursuant to the requirements of SEC Regulation G.
NFE and financial margin exclude unrealized gains or losses on derivative instruments
related to NJR’s unregulated subsidiaries and certain realized gains and losses on derivative instruments related to natural gas that has been placed into storage at Energy Services and certain transactions related to NJR's investments in the
PennEast Project, net of applicable tax adjustments as described below. Financial margin also differs from gross margin as defined on a GAAP basis as it excludes certain operations and maintenance expense and depreciation and amortization as well
as the effects of derivatives as discussed above. Volatility associated with the change in value of these financial instruments and physical commodity reported on
the income statement in the current period. In order to manage its business, NJR views its results without the impacts of the unrealized gains and losses, and certain realized gains and losses, caused by changes in value of these financial
instruments and physical commodity contracts prior to the completion of the planned transaction because it shows changes in value currently instead of when the planned transaction ultimately is settled. An annual estimated effective tax rate is
calculated for NFE purposes and any necessary quarterly tax adjustment is applied to NJR Energy Services Company.
NJNG’s utility gross margin is defined as operating revenues less natural gas
purchases, sales tax, and regulatory rider expense. This measure differs from gross margin as presented on a GAAP basis as it excludes certain operations and
maintenance expense and depreciation and amortization. Utility gross margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution
business and other industries. Management believes that utility gross margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and
passed through to customers and, therefore, have no effect on utility gross margin.
Management uses these non-GAAP financial measures as supplemental measures to other GAAP results to provide a more complete understanding of NJR’s
performance. Management believes these non-GAAP financial measures are more reflective of NJR’s business model, provide transparency to investors and enable period-to-period comparability of financial performance. A reconciliation of all non-GAAP
financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP can be found below. For a full discussion of NJR’s non-GAAP financial measures, please see NJR’s most recent Report on Form 10-K,
Item 7.
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 7 of 13
|
About New Jersey Resources
New Jersey Resources (NYSE: NJR) is a Fortune 1000
company that, through its subsidiaries, provides safe and reliable natural gas and clean energy services, including transportation, distribution, asset management and home services. NJR is composed of five primary businesses:
| • |
New Jersey Natural Gas, NJR’s principal subsidiary, operates and maintains over 7,700 miles of natural gas transportation and distribution infrastructure to serve over 569,300 customers in New Jersey’s Monmouth, Ocean and parts of
Morris, Middlesex, Sussex and Burlington counties.
|
| • |
Clean Energy Ventures invests in, owns and operates solar
projects with a total capacity of more than 386 megawatts, providing residential and commercial customers with low-carbon solutions.
|
| • |
Energy Services manages a diversified portfolio of natural
gas transportation and storage assets and provides physical natural gas services and customized energy solutions to its customers across North America.
|
| • |
Storage and Transportation serves customers from local
distributors and producers to electric generators and wholesale marketers through its ownership of Leaf River and the Adelphia Gateway Pipeline Project, as well as our 50%
equity ownership in the Steckman Ridge natural gas storage facility.
|
| • |
Home Services provides service contracts as well as heating,
central air conditioning, water heaters, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey.
|
NJR and its over 1,200 employees are committed to helping customers save energy and money by promoting conservation and encouraging efficiency through Conserve to
Preserve® and initiatives such as The SAVEGREEN Project® and The Sunlight Advantage®.
For more information about NJR:
www.njresources.com.
Follow us on Twitter @NJNaturalGas.
“Like” us on facebook.com/NewJerseyNaturalGas.
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 8 of 13
|
NEW JERSEY RESOURCES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Utility
|
$
|
190,151
|
$
|
97,937
|
$
|
1,127,417
|
$
|
731,459
|
||||||||
|
Nonutility
|
575,335
|
434,591
|
1,778,562
|
1,425,154
|
||||||||||||
|
Total operating revenues
|
765,486
|
532,528
|
2,905,979
|
2,156,613
|
||||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Gas purchases
|
||||||||||||||||
|
Utility
|
112,463
|
36,569
|
547,901
|
247,734
|
||||||||||||
|
Nonutility
|
413,521
|
356,721
|
1,393,656
|
1,096,920
|
||||||||||||
|
Related parties
|
1,828
|
1,850
|
7,395
|
7,013
|
||||||||||||
|
Operation and maintenance
|
118,723
|
101,126
|
361,866
|
366,905
|
||||||||||||
|
Regulatory rider expenses
|
3,496
|
3,734
|
59,437
|
38,304
|
||||||||||||
|
Depreciation and amortization
|
34,549
|
29,410
|
129,249
|
111,387
|
||||||||||||
|
Total operating expenses
|
684,580
|
529,410
|
2,499,504
|
1,868,263
|
||||||||||||
|
OPERATING INCOME
|
80,906
|
3,118
|
406,475
|
288,350
|
||||||||||||
|
Other income, net
|
9,744
|
10,656
|
22,295
|
24,597
|
||||||||||||
|
Interest expense, net of capitalized interest
|
26,016
|
19,876
|
85,830
|
78,559
|
||||||||||||
|
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES
|
64,634
|
(6,102
|
)
|
342,940
|
234,388
|
|||||||||||
|
Income tax provision (benefit)
|
12,144
|
(4,427
|
)
|
76,195
|
33,286
|
|||||||||||
|
Equity in earnings (loss) of affiliates
|
2,032
|
542
|
8,177
|
(83,212
|
)
|
|||||||||||
|
NET INCOME (LOSS)
|
$
|
54,522
|
$
|
(1,133
|
)
|
$
|
274,922
|
$
|
117,890
|
|||||||
|
EARNINGS (LOSS) PER COMMON SHARE
|
||||||||||||||||
|
Basic
|
$
|
0.57
|
$
|
(0.01
|
)
|
$
|
2.86
|
$
|
1.23
|
|||||||
|
Diluted
|
$
|
0.56
|
$
|
(0.01
|
)
|
$
|
2.85
|
$
|
1.22
|
|||||||
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
||||||||||||||||
|
Basic
|
96,235
|
96,198
|
96,100
|
96,227
|
||||||||||||
|
Diluted
|
96,630
|
96,198
|
96,488
|
96,560
|
||||||||||||
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 9 of 13
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
A reconciliation of net income, the closest GAAP financial measure, to net financial earnings is as follows:
|
||||||||||||||||
|
Net income (loss)
|
$
|
54,522
|
$
|
(1,133
|
)
|
$
|
274,922
|
$
|
117,890
|
|||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
(1,846
|
)
|
40,576
|
(59,906
|
)
|
54,203
|
||||||||||
|
Tax effect
|
439
|
(9,647
|
)
|
14,248
|
(12,887
|
)
|
||||||||||
|
Effects of economic hedging related to natural gas inventory
|
(5,221
|
)
|
(30,150
|
)
|
19,939
|
(42,405
|
)
|
|||||||||
|
Tax effect
|
1,241
|
7,166
|
(4,738
|
)
|
10,078
|
|||||||||||
|
(Gain on) impairment of equity method investment
|
(1,500
|
)
|
—
|
(5,521
|
)
|
92,000
|
||||||||||
|
Tax effect
|
374
|
767
|
1,377
|
(11,167
|
)
|
|||||||||||
|
NFE tax adjustment
|
(113
|
)
|
(980
|
)
|
—
|
—
|
||||||||||
|
Net financial earnings
|
$
|
47,896
|
$
|
6,599
|
$
|
240,321
|
$
|
207,712
|
||||||||
|
Weighted Average Shares Outstanding
|
||||||||||||||||
|
Basic
|
96,235
|
96,198
|
96,100
|
96,227
|
||||||||||||
|
Diluted
|
96,630
|
96,198
|
96,488
|
96,560
|
||||||||||||
|
A reconciliation of basic earnings per share, the closest GAAP financial measure, to basic net financial earnings per share is as follows:
|
||||||||||||||||
|
Basic earnings (loss) per share
|
$
|
0.57
|
$
|
(0.01
|
)
|
$
|
2.86
|
$
|
1.23
|
|||||||
|
Add:
|
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments and related transactions
|
$
|
(0.02
|
)
|
$
|
0.42
|
$
|
(0.62
|
)
|
$
|
0.56
|
||||||
|
Tax effect
|
$
|
0.01
|
$
|
(0.10
|
)
|
$
|
0.15
|
$
|
(0.13
|
)
|
||||||
|
Effects of economic hedging related to natural gas inventory
|
$
|
(0.05
|
)
|
$
|
(0.31
|
)
|
$
|
0.21
|
$
|
(0.44
|
)
|
|||||
|
Tax effect
|
$
|
0.01
|
$
|
0.07
|
$
|
(0.05
|
)
|
$
|
0.10
|
|||||||
|
(Gain on) impairment of equity method investment
|
$
|
(0.02
|
)
|
$
|
—
|
$
|
(0.06
|
)
|
$
|
0.96
|
||||||
|
Tax effect
|
$
|
—
|
$
|
0.01
|
$
|
0.01
|
$
|
(0.12
|
)
|
|||||||
|
NFE tax adjustment
|
$
|
—
|
$
|
(0.01
|
)
|
$
|
—
|
$
|
—
|
|||||||
|
Basic NFE per share
|
$
|
0.50
|
$
|
0.07
|
$
|
2.50
|
$
|
2.16
|
||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to utility gross margin is as follows:
|
||||||||||||||||
|
Operating revenues
|
$
|
190,488
|
$
|
98,274
|
$
|
1,128,767
|
$
|
731,796
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
114,791
|
38,842
|
557,232
|
260,714
|
||||||||||||
|
Operating and maintenance (1)
|
30,805
|
26,156
|
93,164
|
110,364
|
||||||||||||
|
Regulatory rider expense
|
3,496
|
3,734
|
59,437
|
38,304
|
||||||||||||
|
Depreciation and amortization
|
24,391
|
21,507
|
94,579
|
80,045
|
||||||||||||
|
Gross margin
|
17,005
|
8,035
|
324,355
|
242,369
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
30,805
|
26,156
|
93,164
|
110,364
|
||||||||||||
|
Depreciation and amortization
|
24,391
|
21,507
|
94,579
|
80,045
|
||||||||||||
|
Utility gross margin
|
$
|
72,201
|
$
|
55,698
|
$
|
512,098
|
$
|
432,778
|
||||||||
(1) Excludes selling, general and administrative
expenses of $26.7 million and $29.3 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $102.8 million and $97.0 million for the fiscal year ended September 30, 2022 and 2021, respectively
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 10 of 13
|
RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES (continued)
(Unaudited)
|
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
||||||||||||||
|
(Thousands)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
ENERGY SERVICES
|
||||||||||||||||
|
A reconciliation of gross margin, the closest GAAP financial measure, to Energy Services' financial margin is as follows:
|
||||||||||||||||
|
Operating revenues
|
$
|
439,568
|
$
|
334,780
|
$
|
1,529,272
|
$
|
1,228,420
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural Gas purchases
|
413,805
|
357,133
|
1,394,405
|
1,098,261
|
||||||||||||
|
Operation and maintenance (1)
|
10,281
|
4,588
|
23,709
|
33,263
|
||||||||||||
|
Depreciation and amortization
|
54
|
28
|
148
|
111
|
||||||||||||
|
Gross margin
|
15,428
|
(26,969
|
)
|
111,010
|
96,785
|
|||||||||||
|
Add:
|
||||||||||||||||
|
Operation and maintenance (1)
|
10,281
|
4,588
|
23,709
|
33,263
|
||||||||||||
|
Depreciation and amortization
|
54
|
28
|
148
|
111
|
||||||||||||
|
Unrealized loss (gain) on derivative instruments and related transactions
|
1,671
|
45,011
|
(60,000
|
)
|
58,362
|
|||||||||||
|
Effects of economic hedging related to natural gas inventory
|
(5,221
|
)
|
(30,150
|
)
|
19,939
|
(42,405
|
)
|
|||||||||
|
Financial margin
|
$
|
22,213
|
$
|
(7,492
|
)
|
$
|
94,806
|
$
|
146,116
|
|||||||
|
(1) Excludes selling, general and
administrative expenses of $14.3 million and $5.2 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $15.4 million and $17.6 million for the fiscal
year ended September 30, 2022 and 2021, respectively.
|
||||||||||||||||
|
A reconciliation of net income (loss) to net financial (loss) earnings is as follows:
|
||||||||||||||||
|
Net income (loss)
|
$
|
(564
|
)
|
$
|
(24,731
|
)
|
$
|
69,650
|
$
|
58,957
|
||||||
|
Add:
|
||||||||||||||||
|
Unrealized loss (gain) on derivative instruments and related transactions
|
1,671
|
45,011
|
(60,000
|
)
|
58,362
|
|||||||||||
|
Tax effect
|
(397
|
)
|
(10,700
|
)
|
14,270
|
(13,875
|
)
|
|||||||||
|
Effects of economic hedging related to natural gas
|
(5,221
|
)
|
(30,150
|
)
|
19,939
|
(42,405
|
)
|
|||||||||
|
Tax effect
|
1,241
|
7,166
|
(4,738
|
)
|
10,078
|
|||||||||||
|
NFE tax adjustment
|
(113
|
)
|
(980
|
)
|
—
|
—
|
||||||||||
|
Net financial (loss) earnings
|
$
|
(3,383
|
)
|
$
|
(14,384
|
)
|
$
|
39,121
|
$
|
71,117
|
||||||
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 11 of 13
|
FINANCIAL STATISTICS BY BUSINESS UNIT
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
|||||||||||||||
|
(Thousands, except per share data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
NEW JERSEY RESOURCES
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
190,488
|
$
|
98,274
|
$
|
1,128,767
|
$
|
731,796
|
||||||||
|
Clean Energy Ventures
|
92,475
|
69,048
|
128,280
|
95,275
|
||||||||||||
|
Energy Services
|
439,568
|
334,780
|
1,529,272
|
1,228,420
|
||||||||||||
|
Storage and Transportation
|
25,860
|
12,341
|
67,735
|
51,020
|
||||||||||||
|
Home Services and Other
|
14,789
|
13,567
|
56,182
|
52,229
|
||||||||||||
|
Sub-total
|
763,180
|
528,010
|
2,910,236
|
2,158,740
|
||||||||||||
|
Eliminations
|
2,306
|
4,518
|
(4,257
|
)
|
(2,127
|
)
|
||||||||||
|
Total
|
$
|
765,486
|
$
|
532,528
|
$
|
2,905,979
|
$
|
2,156,613
|
||||||||
|
Operating Income (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(9,721
|
)
|
$
|
(21,281
|
)
|
$
|
218,973
|
$
|
148,993
|
||||||
|
Clean Energy Ventures
|
74,055
|
54,014
|
66,178
|
37,993
|
||||||||||||
|
Energy Services
|
1,160
|
(32,186
|
)
|
95,639
|
79,163
|
|||||||||||
|
Storage and Transportation
|
12,867
|
595
|
22,163
|
10,659
|
||||||||||||
|
Home Services and Other
|
(1,562
|
)
|
(4,091
|
)
|
678
|
4,033
|
||||||||||
|
Sub-total
|
76,799
|
(2,949
|
)
|
403,631
|
280,841
|
|||||||||||
|
Eliminations
|
4,107
|
6,067
|
2,844
|
7,509
|
||||||||||||
|
Total
|
$
|
80,906
|
$
|
3,118
|
$
|
406,475
|
$
|
288,350
|
||||||||
|
Equity in Earnings (Loss) of Affiliates
|
||||||||||||||||
|
Storage and Transportation
|
$
|
2,279
|
$
|
964
|
$
|
9,865
|
$
|
(81,072
|
)
|
|||||||
|
Eliminations
|
(247
|
)
|
(422
|
)
|
(1,688
|
)
|
(2,140
|
)
|
||||||||
|
Total
|
$
|
2,032
|
$
|
542
|
$
|
8,177
|
$
|
(83,212
|
)
|
|||||||
|
Net Income (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(16,387
|
)
|
$
|
(24,214
|
)
|
$
|
140,124
|
$
|
107,375
|
||||||
|
Clean Energy Ventures
|
57,813
|
40,861
|
39,403
|
16,789
|
||||||||||||
|
Energy Services
|
(564
|
)
|
(24,731
|
)
|
69,650
|
58,957
|
||||||||||
|
Storage and Transportation
|
12,467
|
1,673
|
26,598
|
(67,787
|
)
|
|||||||||||
|
Home Services and Other
|
(1,894
|
)
|
(1,127
|
)
|
(781
|
)
|
(826
|
)
|
||||||||
|
Sub-total
|
51,435
|
(7,538
|
)
|
274,994
|
114,508
|
|||||||||||
|
Eliminations
|
3,087
|
6,405
|
(72
|
)
|
3,382
|
|||||||||||
|
Total
|
$
|
54,522
|
$
|
(1,133
|
)
|
$
|
274,922
|
$
|
117,890
|
|||||||
|
Net Financial Earnings (Loss)
|
||||||||||||||||
|
Natural Gas Distribution
|
$
|
(16,387
|
)
|
$
|
(24,214
|
)
|
$
|
140,124
|
$
|
107,375
|
||||||
|
Clean Energy Ventures
|
57,813
|
40,861
|
39,403
|
16,789
|
||||||||||||
|
Energy Services
|
(3,383
|
)
|
(14,384
|
)
|
39,121
|
71,117
|
||||||||||
|
Storage and Transportation
|
11,341
|
2,440
|
22,454
|
13,046
|
||||||||||||
|
Home Services and Other
|
(1,894
|
)
|
(1,127
|
)
|
(781
|
)
|
(826
|
)
|
||||||||
|
Sub-total
|
47,490
|
3,576
|
240,321
|
207,501
|
||||||||||||
|
Eliminations
|
406
|
3,023
|
—
|
211
|
||||||||||||
|
Total
|
$
|
47,896
|
$
|
6,599
|
$
|
240,321
|
$
|
207,712
|
||||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
NJNG, Core Customers
|
21.0
|
17.8
|
99.6
|
91.4
|
||||||||||||
|
NJNG, Off System/Capacity Management
|
25.8
|
26.9
|
95.2
|
101.3
|
||||||||||||
|
Energy Services Fuel Mgmt. and Wholesale Sales
|
50.2
|
89.5
|
231.1
|
382.0
|
||||||||||||
|
Total
|
97.0
|
134.2
|
425.9
|
574.7
|
||||||||||||
|
Common Stock Data
|
||||||||||||||||
|
Yield at September 30,
|
4.0
|
%
|
4.2
|
%
|
4.0
|
%
|
4.2
|
%
|
||||||||
|
Market Price at September 30,
|
$
|
38.70
|
$
|
34.81
|
$
|
38.70
|
$
|
34.81
|
||||||||
|
Shares Out. at September 30,
|
96,250
|
95,710
|
96,250
|
95,710
|
||||||||||||
|
Market Cap. at September 30,
|
$
|
3,724,870
|
$
|
3,331,653
|
$
|
3,724,870
|
$
|
3,331,653
|
||||||||
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 12 of 13
|
|
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
||||||||||||||
|
(Thousands, except customer and weather data)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
NATURAL GAS DISTRIBUTION
|
||||||||||||||||
|
Utility Gross Margin
|
||||||||||||||||
|
Operating revenues
|
$
|
190,488
|
$
|
98,274
|
$
|
1,128,767
|
$
|
731,796
|
||||||||
|
Less:
|
||||||||||||||||
|
Natural gas purchases
|
114,791
|
38,842
|
557,232
|
260,714
|
||||||||||||
|
Operating and maintenance (1)
|
30,805
|
26,156
|
93,164
|
110,364
|
||||||||||||
|
Regulatory rider expense
|
3,496
|
3,734
|
59,437
|
38,304
|
||||||||||||
|
Depreciation and amortization
|
24,391
|
21,507
|
94,579
|
80,045
|
||||||||||||
|
Gross margin
|
17,005
|
8,035
|
324,355
|
242,369
|
||||||||||||
|
Add:
|
||||||||||||||||
|
Operating and maintenance (1)
|
30,805
|
26,156
|
93,164
|
110,364
|
||||||||||||
|
Depreciation and amortization
|
24,391
|
21,507
|
94,579
|
80,045
|
||||||||||||
|
Total Utility Gross Margin
|
$
|
72,201
|
$
|
55,698
|
$
|
512,098
|
$
|
432,778
|
||||||||
|
(1) Excludes selling, general and
administrative expenses of $26.7 million and $29.3 million for the three months ended September 30, 2022 and 2021, respectively, and approximately $102.8 million and $97.0 million for the fiscal
year ended September 30, 2022 and 2021, respectively
|
||||||||||||||||
|
Utility Gross Margin, Operating Income and Net Income
|
||||||||||||||||
|
Residential
|
$
|
37,451
|
$
|
29,947
|
$
|
341,167
|
$
|
288,723
|
||||||||
|
Commercial, Industrial & Other
|
13,020
|
10,578
|
77,629
|
64,950
|
||||||||||||
|
Firm Transportation
|
12,832
|
10,518
|
69,933
|
61,870
|
||||||||||||
|
Total Firm Margin
|
63,303
|
51,043
|
488,729
|
415,543
|
||||||||||||
|
Interruptible
|
1,362
|
1,192
|
3,782
|
3,820
|
||||||||||||
|
Total System Margin
|
64,665
|
52,235
|
492,511
|
419,363
|
||||||||||||
|
Off System/Capacity Management/FRM/Storage Incentive
|
7,536
|
3,463
|
19,587
|
13,415
|
||||||||||||
|
Total Utility Gross Margin
|
72,201
|
55,698
|
512,098
|
432,778
|
||||||||||||
|
Operation and maintenance expense
|
57,531
|
55,472
|
198,546
|
203,740
|
||||||||||||
|
Depreciation and amortization
|
24,391
|
21,507
|
94,579
|
80,045
|
||||||||||||
|
Operating (Loss) Income
|
$
|
(9,721
|
)
|
$
|
(21,281
|
)
|
$
|
218,973
|
$
|
148,993
|
||||||
|
Net (Loss) Income
|
$
|
(16,387
|
)
|
$
|
(24,214
|
)
|
$
|
140,124
|
$
|
107,375
|
||||||
|
Net Financial (Loss) Earnings
|
$
|
(16,387
|
)
|
$
|
(24,214
|
)
|
$
|
140,124
|
$
|
107,375
|
||||||
|
Throughput (Bcf)
|
||||||||||||||||
|
Residential
|
3.2
|
3.3
|
45.5
|
46.2
|
||||||||||||
|
Commercial, Industrial & Other
|
0.8
|
0.7
|
8.7
|
8.6
|
||||||||||||
|
Firm Transportation
|
1.5
|
1.6
|
13.0
|
13.7
|
||||||||||||
|
Total Firm Throughput
|
5.5
|
5.6
|
67.2
|
68.5
|
||||||||||||
|
Interruptible
|
15.5
|
12.2
|
32.4
|
22.9
|
||||||||||||
|
Total System Throughput
|
21.0
|
17.8
|
99.6
|
91.4
|
||||||||||||
|
Off System/Capacity Management
|
25.8
|
26.9
|
95.2
|
101.3
|
||||||||||||
|
Total Throughput
|
46.8
|
44.7
|
194.8
|
192.7
|
||||||||||||
|
Customers
|
||||||||||||||||
|
Residential
|
512,264
|
502,546
|
512,264
|
502,546
|
||||||||||||
|
Commercial, Industrial & Other
|
31,227
|
30,615
|
31,227
|
30,615
|
||||||||||||
|
Firm Transportation
|
25,713
|
30,697
|
25,713
|
30,697
|
||||||||||||
|
Total Firm Customers
|
569,204
|
563,858
|
569,204
|
563,858
|
||||||||||||
|
Interruptible
|
88
|
27
|
88
|
27
|
||||||||||||
|
Total System Customers
|
569,292
|
563,885
|
569,292
|
563,885
|
||||||||||||
|
Off System/Capacity Management*
|
8
|
20
|
8
|
20
|
||||||||||||
|
Total Customers
|
569,300
|
563,905
|
569,300
|
563,905
|
||||||||||||
|
*The number of customers represents those active during the last month of the period.
|
||||||||||||||||
|
Degree Days
|
||||||||||||||||
|
Actual
|
33
|
8
|
4,130
|
4,247
|
||||||||||||
|
Normal
|
27
|
29
|
4,504
|
4,541
|
||||||||||||
|
Percent of Normal
|
122.2
|
%
|
27.6
|
%
|
91.7
|
%
|
93.5
|
%
|
||||||||
|
NJR Reports Fiscal 2022 Fourth Quarter and Year End Results
|
|
Page 13 of 13
|
|
(Unaudited)
|
Three Months Ended
September 30,
|
Twelve Months Ended
September 30,
|
||||||||||||||
|
(Thousands, except customer, SREC, TREC and megawatt)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
CLEAN ENERGY VENTURES
|
||||||||||||||||
|
Operating Revenues
|
||||||||||||||||
|
SREC sales
|
$
|
76,637
|
$
|
58,898
|
$
|
84,476
|
$
|
65,434
|
||||||||
|
TREC sales
|
1,913
|
1,496
|
5,487
|
4,571
|
||||||||||||
|
Solar electricity sales and other
|
10,967
|
5,878
|
26,806
|
14,491
|
||||||||||||
|
Sunlight Advantage
|
2,958
|
2,776
|
11,511
|
10,779
|
||||||||||||
|
Total Operating Revenues
|
$
|
92,475
|
$
|
69,048
|
$
|
128,280
|
$
|
95,275
|
||||||||
|
Depreciation and Amortization
|
$
|
5,494
|
$
|
5,249
|
$
|
21,396
|
$
|
20,567
|
||||||||
|
Operating Income
|
$
|
74,055
|
$
|
54,014
|
$
|
66,178
|
$
|
37,993
|
||||||||
|
Income Tax Provision
|
$
|
16,885
|
$
|
12,296
|
$
|
11,361
|
$
|
5,048
|
||||||||
|
Net Income
|
$
|
57,813
|
$
|
40,861
|
$
|
39,403
|
$
|
16,789
|
||||||||
|
Net Financial Earnings
|
$
|
57,813
|
$
|
40,861
|
$
|
39,403
|
$
|
16,789
|
||||||||
|
Solar Renewable Energy Certificates Generated
|
146,772
|
130,847
|
425,453
|
406,118
|
||||||||||||
|
Solar Renewable Energy Certificates Sold
|
378,532
|
300,530
|
417,305
|
333,025
|
||||||||||||
|
Transition Renewable Energy Certificates Generated
|
13,443
|
10,561
|
38,914
|
31,767
|
||||||||||||
|
Solar Megawatts Under Construction
|
63.1
|
59.3
|
63.1
|
59.3
|
||||||||||||
|
ENERGY SERVICES
|
||||||||||||||||
|
Operating Income
|
||||||||||||||||
|
Operating revenues
|
$
|
439,568
|
$
|
334,780
|
$
|
1,529,272
|
$
|
1,228,420
|
||||||||
|
Less:
|
||||||||||||||||
|
Gas purchases
|
413,805
|
357,133
|
1,394,405
|
1,098,261
|
||||||||||||
|
Operation and maintenance expense
|
24,549
|
9,805
|
39,080
|
50,885
|
||||||||||||
|
Depreciation and amortization
|
54
|
28
|
148
|
111
|
||||||||||||
|
Total Operating Income (Loss)
|
$
|
1,160
|
$
|
(32,186
|
)
|
$
|
95,639
|
$
|
79,163
|
|||||||
|
Net Income (Loss)
|
$
|
(564
|
)
|
$
|
(24,731
|
)
|
$
|
69,650
|
$
|
58,957
|
||||||
|
Financial Margin
|
$
|
22,213
|
$
|
(7,492
|
)
|
$
|
94,806
|
$
|
146,116
|
|||||||
|
Net Financial (Loss) Earnings
|
$
|
(3,383
|
)
|
$
|
(14,384
|
)
|
$
|
39,121
|
$
|
71,117
|
||||||
|
Gas Sold and Managed (Bcf)
|
50.2
|
89.5
|
231.1
|
382.0
|
||||||||||||
|
STORAGE AND TRANSPORTATION
|
||||||||||||||||
|
Operating Revenues
|
$
|
25,860
|
$
|
12,341
|
$
|
67,735
|
$
|
51,020
|
||||||||
|
Equity in Earnings (Loss) of Affiliates
|
$
|
2,279
|
$
|
964
|
$
|
9,865
|
$
|
(81,072
|
)
|
|||||||
|
Operation and Maintenance Expense
|
$
|
8,044
|
$
|
8,765
|
$
|
30,568
|
$
|
29,135
|
||||||||
|
Other Income, Net
|
$
|
1,405
|
$
|
1,796
|
$
|
8,546
|
$
|
5,931
|
||||||||
|
Interest Expense
|
$
|
4,937
|
$
|
2,851
|
$
|
12,097
|
$
|
13,348
|
||||||||
|
Income Tax Provision (Benefit)
|
$
|
(853
|
)
|
$
|
(1,169
|
)
|
$
|
1,879
|
$
|
(10,043
|
)
|
|||||
|
Net Income (Loss)
|
$
|
12,467
|
$
|
1,673
|
$
|
26,598
|
$
|
(67,787
|
)
|
|||||||
|
Net Financial Earnings
|
$
|
11,341
|
$
|
2,440
|
$
|
22,454
|
$
|
13,046
|
||||||||
|
HOME SERVICES AND OTHER
|
||||||||||||||||
|
Operating Revenues
|
$
|
14,789
|
$
|
13,567
|
$
|
56,182
|
$
|
52,229
|
||||||||
|
Operating (Loss) Income
|
$
|
(1,562
|
)
|
$
|
(4,091
|
)
|
$
|
678
|
$
|
4,033
|
||||||
|
Net (Loss)
|
$
|
(1,894
|
)
|
$
|
(1,127
|
)
|
$
|
(781
|
)
|
$
|
(826
|
)
|
||||
|
Net Financial (Loss)
|
$
|
(1,894
|
)
|
$
|
(1,127
|
)
|
$
|
(781
|
)
|
$
|
(826
|
)
|
||||
|
Total Service Contract Customers at Sept 30
|
103,123
|
105,720
|
103,123
|
105,720
|
||||||||||||
Exhibit 99.2
