-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OXdRRPczZoVb3Yx2cox/oo1sfWrqCMjfZ0UlKjLysiNfZMi80oL9crnjl/2U2rqB eoBxCo2oXDl0GrgaMwDoEA== 0000314890-97-000005.txt : 19970804 0000314890-97-000005.hdr.sgml : 19970804 ACCESSION NUMBER: 0000314890-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970801 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WICOR INC CENTRAL INDEX KEY: 0000314890 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 391346701 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07951 FILM NUMBER: 97650001 BUSINESS ADDRESS: STREET 1: 626 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 BUSINESS PHONE: 4142917026 MAIL ADDRESS: STREET 1: 626 E WISCONSIN AVE CITY: MILWAUKEE STATE: WI ZIP: 53202 10-Q 1 WICOR 10-Q FOR THE PERIOD ENDED JUNE 30, 1997 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10 - Q /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 1997 or / / TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-7951 WICOR, Inc. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Wisconsin 39-1346701 -------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 626 East Wisconsin Avenue Milwaukee, Wisconsin 53201 -------------------------------------- ---------- (Address of principal executive office) (Zip Code) (414) 291-7026 ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /X/ No / / Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at July 18, 1997 - -------------------------- ---------------------------- Common Stock, $1 Par Value 18,448,730 2 INTRODUCTION WICOR, Inc. ("WICOR" or the "Company") is a diversified holding company with two principal business groups: an energy group responsible for natural gas distribution and related services, and a manufacturing group responsible for the manufacture of pumps and processing equipment used to pump, control, transfer, hold and filter water and other fluids. The Company engages in natural gas distribution through its subsidiary, Wisconsin Gas Company ("Wisconsin Gas"), the oldest and largest natural gas distribution utility in Wisconsin. Through several nonutility subsidiaries, the Company also engages in the manufacture and sale of pumps and processing equipment. The Company's manufactured products primarily have water system, pool and spa, agricultural, RV/marine and beverage/food service applications. The Company markets its manufactured products in 100 countries. The Company is incorporated under the laws of the State of Wisconsin and is exempt from registration as a holding company under the Public Utility Holding Company Act of 1935, as amended. CONTENTS PAGE PART I. Financial Information 1 Management's Discussion and Analysis of Interim Financial Statements 2-5 Consolidated Financial Statements of WICOR, Inc. (Unaudited): Consolidated Statements of Income for the Three and Six Months Ended June 30, 1997 and 1996 6 Consolidated Balance Sheets as of June 30, 1997 and December 31, 1996 7-8 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1997 and 1996 9 Notes to Consolidated Financial Statements 10 PART II. Other Information 11 Signatures 12 3 Part I - Financial Information Financial Statements The consolidated statements included herein have been prepared without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the WICOR, Inc. Annual Report on Form 10-K for the year ended December 31, 1996. In the opinion of management, the information furnished reflects all adjustments, which in all circumstances were normal and recurring, necessary for a fair presentation of the results of operations for the interim periods. Because of seasonal factors, the results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full calendar year. 4 Management's Discussion and Analysis of Interim Financial Statements of WICOR, Inc. Results of Operations - --------------------- Consolidated net income for the three months ended June 30, 1997 increased by $0.7 million, or 12%, to a record $6.3 million. Consolidated net income for the six months ended June 30, 1997 decreased by $2.4 million, or 6%, to $34.2 million. The following factors had a significant effect on the results of operations during the three- and six-month periods ended June 30, 1997. Energy - ------ The Company's energy business earned $0.2 million in the second quarter of 1997 compared to break-even results for the second quarter of 1996. Net income for the six months ended June 30, 1997 decreased by $2.6 million, or 10%, compared to the same period of last year. The improvement in net income for the second quarter was due primarily to lower depreciation expense partially offset by higher operating and maintenance expenses from non-utility operations. The decrease in 1997 year- to-date net income was due to a combination of several factors, including weather that was 6% warmer than in the first six months of 1996 and a voluntary $3.0 million annual rate reduction effective November 1, 1996 (see "Regulatory Matters" below) which were offset in part by decreased depreciation expense 5 Revenues, margins and volumes are summarized below. Margin, defined as revenues less cost of gas sold, is a better performance indicator than revenues because the mix of utility volumes between sales and transportation service affects revenues but not margin. In addition, changes in the cost of gas sold are flowed through to revenue for Wisconsin Gas under a gas adjustment clause with no resulting effect on margin. The following tables set forth margin data for the Energy Group and volume data for the utility, for each of the three- and six-month periods ending June 30.
Three Months Six Months Ended June 30, Ended June 30, ----------------- % ----------------- % 1997 1996 Change 1997 1996 Change -------- -------- ------ -------- -------- ------ (Millions of Dollars) - --------------------- Energy Revenues $ 100.9 $ 109.2 (8) $ 337.9 $ 328.8 3 Cost of Gas Sold 68.0 74.4 (9) 232.4 211.8 10 -------- -------- -------- -------- Sales Margin 32.9 34.8 (5) 105.5 117.0 (10) Gas Transportation Margin 5.0 3.1 61 11.7 6.5 80 -------- -------- -------- -------- Gross Margin 37.9 37.9 - 117.2 123.5 (5) Operation and Maintenance 24.8 24.3 2 52.5 52.2 1 Depreciation/Amortization 7.9 8.4 (6) 15.5 16.7 (7) Interest and Other 2.6 2.6 - 5.5 5.9 (7) Taxes, Other Than Income Tax 2.2 2.3 (4) 4.8 4.9 (2) -------- -------- -------- -------- Income Before Income Taxes 0.4 0.1 300 38.9 43.8 (11) Income Tax Expense 0.2 0.1 100 14.8 17.1 (13) -------- -------- -------- -------- Net Income $ 0.2 $ - N/A $ 24.1 $ 26.7 (10) ======== ======== ======== ======== (Millions of Therms) - ---------------------- Utility Sales Volumes Firm 127.4 140.8 (10) 488.8 548.3 (11) Interruptible 13.8 43.8 (68) 47.9 121.0 (60) Transportation Volume 98.2 58.3 68 221.1 122.7 80 -------- -------- -------- -------- Total Throughput 239.4 242.9 (1) 757.8 792.0 (4) ======== ======== ======== ======== Degree Days (Normal: 2nd Qtr. = 950 Six Months = 4,388) 1,215 1,203 1 4,530 4,833 (6) ======== ======== ======== ========
6 The 10% decrease in firm sales volumes for the second quarter of 1997 was caused principally by lower average use per customer, firm customers switching to transportation and warmer weather early in the second quarter as compared to the same period of last year. Transportation volumes increased mainly because more customers purchased gas from sources other than Wisconsin Gas and transported the volumes over the Wisconsin Gas distribution system. The movement to transportation from gas sales had no impact on margin. For the six-months ended June 30, 1997, the total margin decrease was primarily due to an 11% decrease in utility firm sales volumes. The weather was 3% colder than normal during the first six months of 1997 but, 6% warmer than the same period in 1996. Operations and maintenance expenses increased slightly during the second quarter of 1997 compared to the second quarter of 1996 due to the increased operating activities of FieldTech, Inc. ("FieldTech"). Year to date operating and maintenance expenses remained relatively flat compared with the same period of last year. Depreciation expense for the three and six months ended June 30, 1997, decreased by $0.5 million and $1.2 million, respectively, as compared with the comparable periods of 1996. The decrease in both periods in 1997 was due to the one-time impact of new depreciation rates permitted by the Public Service Commission of Wisconsin ("PSCW") in 1996. 7 Manufacturing - ------------- Manufacturing net income for the three and six months ended June 30, 1997, increased to $6.1 million and $10.1 million, respectively, as compared with $5.6 million and $9.9 million for the same periods in 1996, respectively.
Three Months Six months Ended June 30, Ended June 30, ----------------- % ----------------- % (Millions of Dollars) 1997 1996 Change 1997 1996 Change - --------------------- -------- -------- ------ -------- -------- ------ Net Sales $ 115.7 $ 115.3 - $ 221.0 $ 221.1 - Cost of goods sold 83.0 82.8 - 160.1 158.6 1 -------- -------- -------- -------- Gross profit 32.7 32.5 1 60.9 62.5 (3) Operating expenses 21.3 22.0 (3) 42.1 44.0 (4) -------- -------- -------- -------- Operating income 11.4 10.5 9 18.8 18.5 2 Interest expense and other 1.5 1.5 - 2.8 2.8 - -------- -------- -------- -------- Net income before income taxes 9.9 9.0 10 16.0 15.7 2 Income taxes 3.8 3.4 12 5.9 5.8 - -------- -------- -------- -------- Net income $ 6.1 $ 5.6 9 $ 10.1 $ 9.9 2 ======== ======== ======== ========
8 Net sales for the three- and six-month periods ended June 30, 1997, were relatively flat compared to the same periods in 1996. Domestic sales in the second quarter increased by 2% to $75.0 million over the comparable period of 1996. Overall shipments for beverage, agricultural spraying and irrigation markets in North America were up from last year's comparable period. The increase was due in part to demand for new products and favorable growing conditions. Sales of these products for the six months ended June 30, 1997, increased $1.3 million to $145.6 million. International sales for the second quarter decreased slightly to $40.7 million compared to $42.0 million for the second quarter of 1996. The decrease in international sales was due primarily to currency translation related to the strengthening U.S. dollar. On a year to date basis, international sales decreased by 2% over the same period in 1996. For the six-months ended June 30, 1997 and 1996, international sales accounted for 34% and 35%, respectively, of total net sales for the manufacturing group. Gross profit margins were flat at 28% for the three and six months ended June 30, 1997 as compared to the same periods of 1996. Operating expenses, as a percentage of sales, for the six months ended June 30, 1997, decreased from 20% to 19% compared to the same period in 1996 due to cost reduction programs. Furthermore, the Australian operation has significantly improved as a result of facility consolidation. Non-Operating Income and Income Taxes - ------------------------------------- Interest expense decreased by $0.6 million, or 12%, and $0.7 million, or 8%, for the three and six months ended June 30, 1997, respectively, compared to the similar periods of 1996, due primarily to lower borrowing levels and slightly lower interest rates. Income tax expense was $2.3 million lower for the first six months of 1997, compared to the same period last year, reflecting decreased pre-tax income. Financial Condition - ------------------- Cash flow from operations for the six months ended June 30, 1997, decreased by $22.3 million, or 20%, from the comparable period in 1996. Cash flow from operations in the first six months of 1997 was lower than in 1996, as a result of higher recovered gas costs in the first half of 1996 due to colder weather. Due to the seasonal nature of the energy business, accrued revenues, accounts receivable and accounts payable amounts are higher in the heating season as compared with the summer months. Capital expenditures of $20.3 million for the six months ended June 30, 1997, remained relatively flat compared to the same period in 1996 9 During the third quarter of 1997, the Company plans to refinance the remaining principal balance (approximately $27 million) of the borrowing entered into in connection with the July 1995 acquisition of Hypro Corporation. In addition, the Company has initiated discussions with its commercial banks to enlarge and extend the term of its existing revolving credit facilities. Additional short-term borrowing will be needed during the third and fourth quarters of 1997 to finance working capital primarily related to gas purchased for injection into storage and accounts receivable. The Company has existing lines of credit to satisfy these working capital needs. On July 22, 1997, the Board of Directors of the Company authorized an increase in the Company's dividend per share on common stock to $0.43 per quarter ($1.72 per share on an annualized basis). The first quarterly payment at the new amount will be made August 29, 1997, to shareholders of record on August 8, 1997. Regulatory Matters - ------------------ Wisconsin Gas voluntarily reduced its base rates by $3.0 million on an annualized basis effective November 1, 1996. With this reduction, Wisconsin Gas's rates recover $7.5 million per year less than the maximum margin allowed by the PSCW's November 1994 rate order. Wisconsin Gas has the ability to raise or lower margin rates within a specified range on a quarterly basis. On June 24, 1997, the PSCW approved, with minor modifications, the second year of Wisconsin Gas's two year pilot program ("Gas Advantage") which began on November 1, 1996. For second year of the program, the number of residential and commercial customers will increase from 1,000 to 2,500 and 1,200 to 1,300, respectively. Customers who have enrolled in the pilot have the ability to choose a supplier of natural gas from various gas marketers under an open market concept. Wisconsin Gas continues to deliver the gas to participating customers at the same margin rate it charges for bundled sales services and bills the gas marketers for delivering the natural gas to their customers. Customers receive their monthly bills from the marketers. The Gas Advantage program is designed to enhance competition by enabling customers to compare services and prices available from Wisconsin Gas and third party marketers. 10 WICOR, INC. Consolidated Statements of Operation (Unaudited) (Thousands of Dollars, Except Per Share Data)
Three Months Ended Six Months Ended June 30, June 30, ----------------------- ----------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Operating Revenues: Energy $ 105,923 $ 112,316 $ 349,654 $ 335,271 Manufacturing 115,682 115,284 221,016 221,076 ---------- ---------- ---------- ---------- 221,605 227,600 570,670 556,347 ---------- ---------- ---------- ---------- Operating Costs and Expenses: Cost of gas sold 67,993 74,443 232,414 211,768 Manufacturing cost of sales 83,043 82,761 160,087 158,599 Operations and maintenance 45,716 45,960 93,939 95,427 Depreciation and amortization 8,200 8,771 16,139 17,438 Taxes, other than income taxes 2,226 2,365 4,785 4,872 ---------- ---------- ---------- ---------- 207,178 214,300 507,364 488,104 ---------- ---------- ---------- ---------- Operating Income 14,427 13,300 63,306 68,243 ---------- ---------- ---------- ---------- Interest Expense (3,937) (4,489) (8,375) (9,072) Other Income and (Expenses) (160) 397 12 427 ---------- ---------- ---------- ---------- Income Before Income Taxes 10,330 9,208 54,943 59,598 Income Tax Provision 4,015 3,556 20,720 22,997 ---------- ---------- ---------- ---------- Net Income $ 6,315 $ 5,652 $ 34,223 $ 36,601 ========== ========== ========== ========== Per Share of Common Stock: Net Income $ 0.34 $ 0.31 $ 1.86 $ 2.00 Cash Dividends $ 0.42 $ 0.41 $ 0.84 $ 0.82 Average Common Shares Outstanding (Thousands) 18,422 18,365 18,418 18,332 The accompanying notes are an integral part of these statements.
11 WICOR, INC. Consolidated Balance Sheets
June 30, 1997 December 31, (Unaudited) 1996 Assets ----------- ------------ - ------ (Thousands of Dollars) Current Assets: Cash and cash equivalents $ 10,814 $ 18,784 Accounts receivable, less allowance for doubtful accounts of $16,851 and $14,429, respectively 161,675 150,076 Accrued utility revenues 7,031 59,794 Manufacturing inventories 71,374 72,316 Gas in storage, at weighted average cost 22,817 33,463 Deferred income taxes 21,705 21,706 Prepayments and other 18,029 16,566 ----------- ------------ 313,445 372,705 Property, Plant and Equipment (less accum- ----------- ------------ ulated depreciation of $480,134 and $477,577, respectively) 438,374 441,408 ----------- ------------ Deferred Charges and Other: Regulatory assets 99,122 101,808 Goodwill 60,718 61,366 Prepaid pension costs 39,518 36,869 Systems development costs 20,238 23,052 Other 20,784 20,444 ----------- ------------ 240,380 243,539 ----------- ------------ $ 992,199 $ 1,057,652 =========== ============ The accompanying notes are an integral part of these statements.
12 WICOR, INC. Consolidated Balance Sheets (continued)
June 30, 1997 December 31, (Unaudited) 1996 Liabilities and Capitalization ------------ ------------ - ------------------------------ (Thousands of Dollars) Current Liabilities: Accounts payable $ 72,787 $ 98,951 Refundable gas costs 37,139 31,545 Short-term borrowings 52,084 114,810 Current portion of long-term debt 3,652 4,061 Accrued taxes 9,188 1,260 Accrued payroll and benefits 18,085 17,246 Other 17,767 21,464 ------------ ------------ 210,702 289,337 ------------ ------------ Deferred Credits and Other: Postretirement benefit obligation 66,495 66,391 Regulatory liabilities 58,954 61,749 Deferred income taxes 39,836 39,668 Accrued environmental remediation costs 35,822 36,222 Unamortized investment tax credit 6,908 7,265 Other 17,546 19,399 ------------ ------------ 225,561 230,694 ------------ ------------ Capitalization: Long-term debt 169,056 169,169 Common stock 18,443 18,407 Other paid-in capital 225,970 224,041 Retained earnings 148,533 129,777 Cumulative currency translation adjustment (1,235) 1,349 Unearned compensation - ESOP and restricted stock (4,831) (5,122) ------------ ------------ 555,936 537,621 ------------ ------------ $ 992,199 $ 1,057,652 ============ ============ The accompanying notes are an integral part of these statements.
13 WICOR, INC. Consolidated Statement of Cash Flows (Unaudited) (Thousands of Dollars)
Six Months Ended June 30, ------------------------ 1997 1996 Operations ---------- ---------- Net income $ 34,223 $ 36,601 Adjustments to reconcile net income to net cash flows: Depreciation and amortization 27,134 27,879 Deferred income taxes 169 216 Change in: Receivables 41,434 21,242 Manufacturing inventories 2,580 2,280 Gas in storage 10,645 3,490 Other current assets (1,591) (1,175) Accounts payable (27,636) (3,538) Refundable gas costs 5,594 23,818 Accrued taxes 8,109 4,116 Accrued payroll and benefits 779 3,067 Other current liabilities (3,697) (1,511) Other non-current assets and liabilities, net (7,730) (4,142) ---------- ---------- 90,013 112,343 ---------- ---------- Investment Activities: Capital expenditures (20,292) (20,439) Acquisition of business assets (477) - Other 183 401 ---------- ---------- (20,586) (20,038) ---------- ---------- Financing Activities: Change in short-term borrowings (60,499) (52,091) Reduction in long-term debt (3,395) (4,182) Issuance of long-term debt - 7,693 Issuance of common stock 1,965 2,759 Dividends paid on common stock, less amounts reinvested (15,468) (15,033) ---------- ---------- (77,397) (60,854) ---------- ---------- Change in Cash and Cash Equivalents (7,970) 31,451 Cash and Cash Equivalents at Beginning of Period 18,784 20,380 ---------- ---------- Cash and Cash Equivalents at End of Period $ 10,814 $ 51,831 ========== ========== The accompanying notes are an integral part of these statements.
14 Notes to Consolidated Financial Statements (Unaudited): 1) At June 30, 1997 WICOR had borrowings of $19.1 million under total unsecured lines of credit of $217.1 million with several banks. The Company has classified $6.0 million of commercial paper as long-term debt as of June 30, 1997. A total of $5.8 million of commercial paper, classified as short-term debt, was outstanding as of June 30, 1997 at a weighted average interest rate of 5.7%. 2) For purposes of the Consolidated Statements of Cash Flows, income taxes paid, net of refunds, and interest paid (excluding capitalized interest) were as follows: For the Six Months Ended June 30, ---------------------- 1997 1996 ---------- ---------- (Thousands of Dollars) Income taxes paid $ 13,582 $ 20,252 Interest paid $ 8,754 $ 8,487 3) During the second quarter of 1997, WICOR and its subsidiaries consummated two acquisitions. The aggregate cash purchase price of these acquisitions totaled less than $10 million. Effective June 5, 1997, FieldTech purchased, for cash, selected business assets of Can Am Utility Services Corporation, a privately held provider of contract meter reading, meter installation and other services for water, gas and electric utilities. Effective April 24, 1997, Nocchi Pompe s.r.l., an Italian subsidiary of Sta- Rite Industries, Inc., purchased, for cash and the assumption of certain liabilities, selected business assets of Majmar Pompe s.r.l. ("Majmar"), a pump manufacturer located in Milan, Italy. Majmar makes pumps for water circulation and pressure boosting applications. These pumps are primarily used in residential and commercial heating systems, fire protection systems, high rise buildings and municipal water supply systems. Both acquisitions have been accounted for as purchases with results included in the WICOR, Inc. financial statements subsequent to the acquisition date. 15 Part II - Other Information Item 4. Submission of Matters to a Vote of Security Holders - ----------------------------------------------------------- At the Company's annual meeting of shareholders held on April 24, 1997, Willie D. Davis, Guy A. Osborn and William B. Winter were elected as directors of the Company for terms expiring in 2000. The following table sets forth certain information with respect to the election of directors at the annual meeting: Shares Withholding Name of Nominee Shares Voted For Authority - -------------------- ---------------- ------------------ Willie D. Davis 15,264,206 436,112 Guy A. Osborn 15,280,269 420,049 William B. Winter 15,270,511 429,807 The following table sets forth the other directors of the Company whose terms of office continued after the 1997 annual meeting: Year in Which Name of Director Term Expires - ------------------------ ------------- Wendell F. Bueche 1998 Daniel F. McKeithan, Jr. 1998 George E. Wardeberg 1998 Essie M. Whitelaw 1998 Jere D. McCaffey 1999 Thomas F. Schrader 1999 Stuart W. Tisdale 1999 Item 5. Other Information - ------------------------- George E. Wardeberg was named chairman and chief executive officer of WICOR effective July 22, 1997. The chairman's position had been vacant since Stuart W. Tisdale retired in 1994. Thomas F. Schrader was named president and chief operating officer of WICOR effective July 22, 1997. He succeeds George E. Wardeberg as president of WICOR. Joseph P. Wenzler was named senior vice president, treasurer and chief financial officer of WICOR effective July 22, 1997. Item 6. Exhibits and Reports on Form 8-K - ---------------------------------------- (a) Exhibits 10.1 Form of Key Executive Employment and Severance Agreement between the Company and each of George E. Wardeberg, Thomas F. Schrader, Joseph P. Wenzler and James C. Donnelly. 27 Financial data schedule (EDGAR version only). (b) Reports on Form 8-K - There were no reports on Form 8-K filed by the Company during the second quarter of 1997. 16 SIGNATURES 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 thereunto duly authorized. WICOR, INC. Dated: July 31, 1997 By: /s/ Joseph P. Wenzler Joseph P. Wenzler Senior Vice President, Treasurer and Chief Financial Office 17 WICOR, Inc. FORM 10-Q Exhibit Exhibit No. Description - ----------- --------------------------------------------------- 10.1 Form of Key Executive Employment and Severance Agreement between the Company and each of George E. Wardeberg, Thomas F. Schrader, Joseph P. Wenzler and James C. Donnelly. 27 Financial data schedule (EDGAR version only) EX-10 2 EXHIBIT 10-1 1 NO KEY EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT THIS AGREEMENT, made and entered into as of the day of , 1997, by and between WICOR, Inc., a Wisconsin corporation (hereinafter referred to as the "Company"), and (hereinafter referred to as the "Executive"). W I T N E S S E T H : WHEREAS, the Executive is employed by the Company and/or a subsidiary of the Company in a key executive capacity, and the Executive's services are valuable to the conduct of the business of the Company; WHEREAS, the Board of Directors of the Company (the "Board") recognizes that circumstances may arise in which a change in control of the Company occurs, through acquisition or otherwise, thereby causing uncertainty about the Executive's future employment with the Company and/or any such subsidiary without regard to the Executive's competence or past contributions, which uncertainty may result in the loss of valuable services of the Executive to the detriment of the Company and its shareholders, and the Company and the Executive wish to provide reasonable security to the Executive against changes in the Executive's relationship with the Company in the event of any such change in control; WHEREAS, the Company and the Executive desire that any proposal for a change in control or acquisition of the Company will be considered by the Executive objectively and with reference only to the best interests of the Company and its shareholders; and WHEREAS, the Executive will be in a better position to consider the Company's best interests if the Executive is afforded reasonable security, as provided in this Agreement, against altered conditions of employment which could result from any such change in control or acquisition. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the parties hereto mutually covenant and agree as follows: 1. Definitions. The following terms are used in this Agreement as defined in Exhibit A: Act Covered Termination Accrued Benefits Effective Date Affiliate and Associate Employer Annual Cash Compensation Good Reason Cause Normal Retirement Date Change in Control Notice of Termination Code Person Competitive Activity Termination Date 2 2. Termination or Cancellation Prior to the Effective Date. The Employer and the Executive shall each retain the right to terminate the employment of the Executive at any time prior to the Effective Date. If the Executive's employment is terminated prior to the Effective Date, then this Agreement shall be terminated and cancelled and of no further force or effect and any and all rights and obligations of the parties hereunder shall cease. In addition, this Agreement shall terminate upon the Executive ceasing to be an officer of the Employer prior to a Change in Control unless the Executive can reasonably demonstrate that such change in status occurred under circumstances described in clause (iii)(B)(1) or (iii)(B)(2) of the definition of "Effective Date" in Exhibit A. 3. Employment Period. If the Executive is employed by the Employer on the Effective Date, then the Company will, or will cause the Employer to, continue thereafter to employ the Executive during the Employment Period (as hereinafter defined), and the Executive will remain in the employ of the Employer, in accordance with and subject to the terms and provisions of this Agreement. For purposes of this Agreement, the term "Employment Period" means a period (i) commencing on the Effective Date, and (ii) ending at 11:59 p.m. Milwaukee Time on the earlier of the third anniversary of such date or the Executive's Normal Retirement Date. 4. Duties. During the Employment Period, the Executive shall, in the most significant capacities and positions held by the Executive at any time during the 180-day period preceding the Effective Date or in such other capacities and positions as may be agreed to by the Company and the Executive in writing, devote the Executive's best efforts and all of the Executive's business time, attention and skill to the business and affairs of the Employer, as such business and affairs now exist and as they may hereafter be conducted. 5. Compensation. During the Employment Period, the Executive shall be compensated as follows: (a) The Executive shall receive, at reasonable intervals (but not less often than monthly) and in accordance with such standard policies as may be in effect immediately prior to the Effective Date, an annual base salary in cash equivalent of not less than twelve times the Executive's highest monthly base salary for the twelve-month period immediately preceding the month in which the Effective Date occurs or, if higher, annual base salary at the rate in effect immediately prior to the Effective Date (which base salary shall, unless otherwise agreed in writing by the Executive, include the current receipt by the Executive of any amounts which, prior to the Effective Date, the Executive had elected to defer, whether such compensation is deferred under Section 401(k) of the Code or otherwise), subject to upward adjustment as provided in Section 6 (such salary amount as adjusted upward from time to time is hereafter referred to as the "Annual Base Salary"). (b) The Executive shall receive fringe benefits at least equal in value to those provided for the Executive at any time during the 180-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to any executives of the Company and its Affiliates of comparable status and position to the Executive. The Executive shall be reimbursed, at such intervals and in accordance with such standard policies that are most favorable to the Executive that were in effect at any time during the 180-day period immediately preceding the Effective Date or, if more favorable to the Executive, those provided generally at any time after the Effective Date to any executives of the Company and its Affiliates of comparable status and position to the Executive, for any and all monies advanced in connection with the Executive's employment for reasonable and necessary expenses incurred by the Executive on behalf of the Company and its Affiliates, including travel expenses. 3 (c) The Executive and/or the Executive's family, as the case may be, shall be included, to the extent eligible thereunder (which eligibility shall not be conditioned on the Executive's salary grade or on any other requirement that excludes executives of the Company and its Affiliates of comparable status and position to the Executive unless such exclusion was in effect for such plan or an equivalent plan on the date 180 days prior to the Effective Date), in any and all welfare benefit plans, practices, policies and programs providing benefits for the Company's salaried employees in general or, if more favorable to the Executive, to any executives of the Company and its Affiliates of comparable status and position to the Executive, including but not limited to group life insurance, hospitalization, medical and dental plans; provided, that, (i) in no event shall the aggregate level of benefits under such plans, practices, policies and programs in which the Executive is included be less than the aggregate level of benefits under plans, practices, policies and programs of the type referred to in this Section 5(c) in which the Executive was participating at any time during the 180-day period immediately preceding the Effective Date and (ii) in no event shall the aggregate level of benefits under such plans, practices, policies and programs be less than the aggregate level of benefits under plans, practices, policies and programs of the type referred to in this Section 5(c) provided at any time after the Effective Date to any executive of the Company and its Affiliates of comparable status and position to the Executive. (d) The Executive shall annually be entitled to not less than the amount of paid vacation and not fewer than the number of paid holidays to which the Executive was entitled annually at any time during the 180-day period immediately preceding the Effective Date or such greater amount of paid vacation and number of paid holidays as may be made available annually to the Executive or any other executive of the Company and its Affiliates of comparable status and position to the Executive at any time after the Effective Date. (e) The Executive shall be included in all plans providing additional benefits to any executives of the Company and its Affiliates of comparable status and position to the Executive, including but not limited to deferred compensation, split-dollar life insurance, retirement, supplemental retirement, stock option, stock appreciation, stock bonus and similar or comparable plans; provided, that, (i) in no event shall the aggregate level of benefits under such plans be less than the aggregate level of benefits under plans of the type referred to in this Section 5(e) in which the Executive was participating at any time during the 180-day period immediately preceding the Effective Date; (ii) in no event shall the aggregate level of benefits under such plans be less than the aggregate level of benefits under plans of the type referred to in this Section 5(e) provided at any time after the Effective Date to any executive of the Company and its Affiliates of comparable status and position to the Executive; and (iii) the Company's obligation to include the Executive in bonus or incentive compensation plans shall be determined by Section 5(f). 4 (f) To assure that the Executive will have an opportunity to earn incentive compensation after the Effective Date, the Executive shall be included in a bonus plan of the Company that shall satisfy the standards described below (the "Bonus Plan"). Bonuses under the Bonus Plan shall be payable with respect to achieving such financial or other goals reasonably related to the business of the Company, including the Employer, as the Company shall establish (the "Goals"), all of which Goals shall be attainable, prior to the end of the Employment Period, with approximately the same degree of probability as the goals under the Employer's annual incentive plan currently in effect, or the successor to such plan, in the form most favorable to the Executive that was in effect at any time during the 180-day period prior to the Effective Date (the "Existing Plan") and in view of the Company's existing and projected financial and business circumstances applicable at the time. The amount of the bonus (the "Bonus Amount") that the Executive is eligible to earn under the Bonus Plan shall be no less than the amount of the Executive's highest maximum potential award under the Existing Plan at any time during the 180-day period prior to the Effective Date or, if higher, any maximum potential award under the Bonus Plan or any other bonus or incentive compensation plan in effect after the Effective Date for the Executive or for any executive of the Company and its Affiliates of comparable status and position to the Executive (such bonus amount herein referred to as the "Targeted Bonus"), and if the Goals are not achieved (and, therefore, the entire Targeted Bonus is not payable), then the Bonus Plan shall provide for a payment of a Bonus Amount not less than a portion of the Targeted Bonus reasonably related to that portion of the Goals that were achieved. Payment of the Bonus Amount (i) shall be in cash, unless otherwise agreed by the Executive, and (ii) shall not be affected by any circumstance occurring subsequent to the end of the Employment Period, including termination of the Executive's employment. 6. Annual Compensation Adjustments. During the Employment Period, the Board of Directors of the Company (or an appropriate committee thereof) will consider and appraise, at least annually, the contributions of the Executive to the Employer, and in accordance with the Company's practice prior to the Effective Date, due consideration shall be given, at least annually, to the upward adjustment of the Executive's Annual Base Salary (i) commensurate with increases generally given to other executives of the Company and its Affiliates of comparable status and position to the Executive, and (ii) as the scope of the Company's operations or the Executive's duties expand. 7. Termination During Employment Period. (a) Right to Terminate. During the Employment Period, (i) the Company shall be entitled to terminate the Executive's employment (A) for Cause, (B) by reason of the Executive's disability pursuant to Section 11, or (C) for any other reason, and (ii) the Executive shall be entitled to terminate the Executive's employment for any reason. Any such termination shall be subject to the procedures set forth in Section 12 and shall be subject to any consequences of such termination set forth in this Agreement. Any termination of the Executive's employment during the Employment Period by the Employer shall be deemed a termination by the Company for purposes of this Agreement. (b) Termination for Cause or Without Good Reason. If there is a Covered Termination for Cause or due to the Executive's voluntarily terminating the Executive's employment other than for Good Reason, then the Executive shall be entitled to receive only Accrued Benefits. 5 (c) Termination Giving Rise to a Termination Payment. If there is a Covered Termination by the Executive for Good Reason, or by the Company other than by reason of (i) death, (ii) disability pursuant to Section 11, or (iii) Cause, then the Executive shall be entitled to receive, and the Company shall promptly pay, Accrued Benefits and, in lieu of further base salary for periods following the Termination Date, as liquidated damages and additional severance pay and in consideration of the covenant of the Executive set forth in Section 13(a), the Termination Payment pursuant to Section 8(a). 8. Payments Upon Termination. (a) Termination Payment. (i) Subject to the limits set forth in Section 8(a)(ii), for purposes of this Agreement, the "Termination Payment" shall be an amount equal to the Annual Cash Compensation multiplied by the number of years or fractional portion thereof remaining in the Employment Period determined as of the Termination Date, except that the Termination Payment shall not be less than the amount of Annual Cash Compensation. The Termination Payment shall be paid to the Executive in cash equivalent not later than ten business days after the Termination Date. The Executive shall not be required to mitigate the amount of the Termination Payment by securing other employment or otherwise, nor will such Termination Payment be reduced by reason of the Executive securing other employment or for any other reason. The Termination Payment shall be in addition to any other severance payments to which the Executive is entitled under the Company's severance policies and practices in the form most favorable to the Executive that were in effect at any time during the 180-day period prior to the Effective Date. 6 (ii) Notwithstanding any other provision of this Agreement, if any portion of the Termination Payment or any other payment under this Agreement, or under any other agreement with or plan of the Company or the Employer (in the aggregate "Total Payments"), would constitute an "excess parachute payment," then the Total Payments to be made to the Executive shall be reduced such that the value of the aggregate Total Payments that the Executive is entitled to receive shall be One Dollar ($1) less than the maximum amount which the Executive may receive without becoming subject to the tax imposed by Section 4999 of the Code (or any successor provision) or which the Company may pay without loss of deduction under Section 280G(a) of the Code (or any successor provision). For purposes of this Agreement, the terms "excess parachute payment" and "parachute payments" shall have the meanings assigned to them in Section 280G of the Code (or any successor provision), and such "parachute payments" shall be valued as provided therein. Present value for purposes of this Agreement shall be calculated in accordance with Section 1274(b)(2) of the Code (or any successor provision). Within sixty days following delivery of the Notice of Termination or notice by the Company to the Executive of its belief that there is a payment or benefit due the Executive which will result in an excess parachute payment as defined in Section 280G of the Code (or any successor provision), the Executive and the Company, at the Company's expense, shall obtain the opinion (which need not be unqualified) of nationally recognized tax counsel selected by the Company's independent auditors and acceptable to the Executive in the Executive's sole discretion, which sets forth (A) the amount of the Base Period Income, (B) the amount and present value of Total Payments and (C) the amount and present value of any excess parachute payments without regard to the limitations of this Section 8(a)(ii). As used in this Section 8(a)(ii), the term "Base Period Income" means an amount equal to the Executive's "annualized includible compensation for the base period" as defined in Section 280G(d)(1) of the Code (or any successor provision). For purposes of such opinion, the value of any noncash benefits or any deferred payment or benefit shall be determined by the Company's independent auditors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code (or any successor provisions), which determination shall be evidenced in a certificate of such auditors addressed to the Company and the Executive. Such opinion shall be dated as of the Termination Date and addressed to the Company and the Executive and shall be binding upon the Company and the Executive. If such opinion determines that there would be an excess parachute payment, then the Termination Payment hereunder or any other payment determined by such counsel to be includible in Total Payments shall be reduced or eliminated as specified by the Executive in writing delivered to the Company within thirty days of the Executive's receipt of such opinion or, if the Executive fails to so notify the Company, then as the Company shall reasonably determine, so that under the bases of calculations set forth in such opinion there will be no excess parachute payment. If such counsel so requests in connection with the opinion required by this Section, the Executive and the Company shall obtain, at the Company's expense, and the counsel may rely on in providing the opinion, the advice of a firm of recognized executive compensation consultants as to the reasonableness of any item of compensation to be received by the Executive. Notwithstanding the foregoing, the provisions of this Section 8(a)(ii), including the calculations, notices and opinions provided for herein, shall be based upon the conclusive presumption that the following are reasonable: (1) the compensation and benefits provided for in Section 5 and (2) any other compensation, including but not limited to the Accrued Benefits, earned prior to the Termination Date by the Executive pursuant to the Company's compensation programs if such payments would have been made in the future in any event, even though the timing of such payment is triggered by the Change in Control or the Termination Date. If the provisions of Sections 280G and 4999 of the Code (or any successor provisions) are repealed without succession, then this Section 8(a)(ii) shall be of no further force or effect. 7 (b) Additional Benefits. If there is a Covered Termination and the Executive is entitled to Accrued Benefits and the Termination Payment, then the Executive shall be entitled to the following additional benefits: (i) The Executive will be entitled to pension benefits in addition to the most favorable benefits provided for the Executive under any version of the Wisconsin Gas Company Pension Plan for Non-Union Employees and the Employer's Supplemental Retirement Plan (or any successors to such plans) in effect at any time during the 180-day period prior to the Effective Date (the "Retirement Plans"). The amount of additional pension benefits will be equal to the difference between the amount the Executive (or in the event of the Executive's death, the Executive's surviving spouse or other beneficiary) would be actually entitled to receive upon retirement under the terms and conditions of the Retirement Plans and the amount the Executive (or such surviving spouse or beneficiary) would have been entitled to receive under such terms and conditions if the Executive's benefits under the Retirement Plans had been fully vested on the Termination Date and the Executive had continued to work for a period of two additional years after the Termination Date at a salary rate equal to the Executive's Annual Base Salary; provided, however, that in no event will the assumed period of continued employment extend beyond the date on which the Executive elects to begin receiving the additional pension benefits. The Executive shall be entitled to elect to receive the Executive's additional pension benefits in any form (e.g. joint and survivor) that would have been available to the Executive under the terms and conditions of the Retirement Plans and (subject to reduction, if any, under such terms) at any time after the Executive has attained the age at which early retirement is permitted. In addition, if the Executive starts to receive the Executive's additional pension benefits before the earliest date on which the Executive is eligible for unreduced Social Security benefits, then the Executive will receive an amount equal to the difference between the Executive's estimated unreduced Social Security benefit and the actual benefit to which the Executive is entitled until the Executive attains the age when the Executive is eligible for unreduced benefits. (ii) Until the earlier of the end of the Employment Period or such time as the Executive has obtained new employment and is covered by benefits which in the aggregate are at least equal in value to the following benefits, the Executive shall continue to be covered, at the expense of the Company, by the most favorable life insurance, hospitalization, medical and dental coverage and other welfare benefits provided to the Executive and the Executive's family during the 180-day period immediately preceding the Effective Date or at any time thereafter or, if more favorable to the Executive, coverage as was required hereunder with respect to the Executive immediately prior to the date Notice of Termination is given; provided, however, that if the Executive is otherwise entitled to receive hospitalization and/or medical coverage under a plan or plans for early retirees sponsored by the Company or a subsidiary thereof, then the Executive shall not be eligible for such hospitalization or medical coverage under this Section 8(b)(ii). (iii) The Executive shall receive, at the expense of the Company, outplacement services, on an individualized basis at a level of service commensurate with the Executive's most senior status with the Company during the 180-day period prior to the Effective Date (or, if higher, at any time after the Effective Date), provided by a nationally recognized executive placement firm selected by the Company with the consent of the Executive, which consent will not be unreasonably withheld; provided that the cost to the Company of such services shall not exceed 15% of the Executive's Annual Base Salary. 8 (iv) The Company shall bear up to $10,000 in the aggregate of fees and expenses of consultants and/or legal or accounting advisors engaged by the Executive to advise the Executive as to matters relating to the computation of benefits due and payable under this Section 8. 9. Death. (a) Except as provided in Section 9(b), in the event of a Covered Termination due to the Executive's death, the Executive's estate, heirs and beneficiaries shall receive all the Executive's Accrued Benefits through the Termination Date. (b) If the Executive dies after a Notice of Termination is given (i) by the Company or (ii) by the Executive for Good Reason, then the Executive's estate, heirs and beneficiaries shall be entitled to the benefits described in Section 9(a) and, subject to the provisions of this Agreement, to such Termination Payment to which the Executive would have been entitled had the Executive lived. In such event, the Termination Date shall be thirty days following the giving of the Notice of Termination, subject to extension pursuant to the definition of "Termination Date" in Exhibit A. 10. Retirement. If, during the Employment Period, the Executive and the Employer shall execute an agreement providing for the early retirement of the Executive from the Employer, or the Executive shall otherwise give notice that the Executive is voluntarily choosing to retire early from the Employer, then the Executive shall receive Accrued Benefits through the Termination Date; provided, that if the Executive's employment is terminated by the Executive for Good Reason or by the Company other than by reason of death, disability or Cause and the Executive also, in connection with such termination, elects voluntary early retirement, then the Executive shall also be entitled to receive a Termination Payment pursuant to Section 8(a). 11. Termination for Disability. If, during the Employment Period, as a result of the Executive's disability due to physical or mental illness or injury (regardless of whether such illness or injury is job-related), the Executive shall have been absent from the Executive's duties hereunder on a full-time basis for a period of 182 days and, within thirty days after the Company notifies the Executive in writing that it intends to terminate the Executive's employment (which notice shall not constitute the Notice of Termination contemplated below), the Executive shall not have returned to the performance of the Executive's duties hereunder on a full-time basis, then the Company may terminate the Executive's employment for purposes of this Agreement pursuant to a Notice of Termination. If the Executive's employment is terminated on account of the Executive's disability in accordance with this Section, then the Executive shall receive Accrued Benefits in accordance with Section 8(a) and shall remain eligible for all benefits provided by any long term disability programs of the Employer in effect at the time the Company sends notice to the Executive of its intent to terminate pursuant to this Section. 12. Termination Notice and Procedure. (a) Any termination of the Executive's employment during the Employment Period by the Company or the Executive (other than a termination of the Executive's employment referenced in the second sentence of the definition of "Effective Date" in Exhibit A) shall be communicated by written Notice of Termination to the Executive, if such Notice is given by the Company, and to the Company, if such Notice is given by the Executive, all in accordance with the following procedures and those set forth in Section 22: (i) If such termination is for disability, Cause or Good Reason, the Notice of Termination shall indicate in reasonable detail the facts and circumstances alleged to provide a basis for such termination. 9 (ii) Any Notice of Termination by the Company shall have been approved, prior to the giving thereof to the Executive, by a resolution duly adopted by a majority of the directors of the Company (or any successor corporation) then in office, a copy of which shall accompany the Notice. (iii) If the Notice is given by the Executive for Good Reason, then the Executive may cease performing the Executive's duties hereunder on or after the date 15 days after the delivery of Notice of Termination (unless the Notice of Termination is based upon clause (viii) of the definition of "Good Reason" in Exhibit A, in which case the Executive may cease performing his duties at the time the Executive's employment is terminated) and shall in any event cease employment on the Termination Date, if any, arising from the delivery of such Notice. If the Notice is given by the Company, then the Executive may cease performing the Executive's duties hereunder on the date of receipt of the Notice of Termination, subject to the Executive's rights hereunder. (iv) The recipient of any Notice of Termination shall personally deliver or mail in accordance with Section 22 written notice of any dispute relating to such Notice of Termination to the party giving such Notice within fifteen days after receipt thereof. After the expiration of such fifteen days, the contents of the Notice of Termination shall become final and not subject to dispute. Notwithstanding the foregoing, (A) if the Executive terminates the Executive's employment after a Change in Control without complying with this Section 12, then the Executive will be deemed to have voluntarily terminated the Executive's employment other than for Good Reason and deemed to have delivered a written Notice of Termination to that effect to the Company as of the date of such termination and (B) if the Company terminates the Executive's employment after a Change in Control without complying with this Section 12, then the Company will be deemed to have terminated the Executive's employment other than by reason of death, disability or Cause and the Company will be deemed to have delivered a written Notice of Termination to that effect to the Executive as of the date of such termination. Under circumstances described in clause (B) above, the Executive may, but shall not be obligated to, also deliver a Notice of Termination based upon clause (viii) of the definition of "Good Reason" in Exhibit A for the purpose of subjecting such Notice to Section 12(a)(iv). (b) If a Change in Control occurs and the Executive's employment with the Employer terminates (whether by the Company, the Executive or otherwise) within 180 days prior to the Change in Control, then the Executive may assert that such termination is a Covered Termination by sending a written Notice of Termination to the Company at any time prior to the first anniversary of the Change in Control in accordance with the procedures set forth in this Section 12(b) and those set forth in Section 22. If the Executive asserts that the Executive terminated the Executive's employment for Good Reason or that the Company terminated the Executive's employment other than for disability or Cause, then the Notice of Termination shall indicate in reasonable detail the facts and circumstances alleged to provide a basis for such assertions. The Company shall personally deliver or mail in accordance with Section 22 written notice of any dispute relating to such Notice of Termination to the Executive within fifteen days after receipt thereof. After the expiration of such fifteen days, the contents of the Notice of Termination shall become final and not subject to dispute. 13. Further Obligations of the Executive. (a) Competition. The Executive agrees that, in the event of any Covered Termination where the Executive is entitled to (and receives) Accrued Benefits and the Termination Payment, the Executive shall not, for a period of six months after the Termination Date, without the prior written approval of the Company's Board of Directors, engage in any Competitive Activity. 10 (b) Confidentiality. During and following the Executive's employment by the Employer, the Executive shall hold in confidence and not directly or indirectly disclose or use or copy or make lists of any confidential information or proprietary data of the Company (including that of the Employer), except to the extent authorized in writing by the Board of Directors of the Company or required by any court or administrative agency, other than to an employee of the Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Executive of duties as an executive of the Company or the Employer. Confidential information shall not include any information known generally to the public or any information of a type not otherwise considered confidential by persons engaged in the same business or a business similar to that of the Company. All records, files, documents and materials, or copies thereof, relating to the business of the Company which the Executive shall prepare, or use, or come into contact with, shall be and remain the sole property of the Company and shall be promptly returned to the Company upon termination of employment with the Employer. 14. Expenses and Interest. If, after the Effective Date, (i) a dispute arises with respect to the enforcement of the Executive's rights under this Agreement, (ii) any legal or arbitration proceeding shall be brought to enforce or interpret any provision contained herein or to recover damages for breach hereof, or (iii) any tax audit or proceeding is commenced that is attributable in part to the application of Section 4999 of the Code, in any case so long as the Executive is not acting in bad faith, then the Company shall reimburse the Executive for any reasonable attorneys' fees and necessary costs and disbursements incurred as a result of such dispute, legal or arbitration proceeding or tax audit or proceeding ("Expenses"), and prejudgment interest on any money judgment or arbitration award obtained by the Executive calculated at the rate of interest announced by M&I Marshall & Ilsley Bank, Milwaukee, Wisconsin, from time to time as its prime or base lending rate from the date that payments to the Executive should have been made under this Agreement. Within ten days after the Executive's written request therefor, the Company shall pay to the Executive, or such other person or entity as the Executive may designate in writing to the Company, the Executive's reasonable Expenses in advance of the final disposition or conclusion of any such dispute, legal or arbitration proceeding. 15. Payment Obligations Absolute. The Company's obligation during and after the Employment Period to pay the Executive the amounts and to make the benefit and other arrangements provided herein shall be absolute and unconditional and shall not be affected by any circumstances, including, without limitation, any setoff, counterclaim, recoupment, defense or other right which the Company may have against the Executive or anyone else. Except as provided in Section 14, all amounts payable by the Company hereunder shall be paid without notice or demand. Each and every payment made hereunder by the Company shall be final, and the Company will not seek to recover all or any part of such payment from the Executive, or from whomsoever may be entitled thereto, for any reason whatsoever. 11 16. Successors. (a) If the Company sells, assigns or transfers all or substantially all of its business and assets to any Person or if the Company merges into or consolidates or otherwise combines (where the Company does not survive such combination) with any Person (any such event, a "Sale of Business"), then the Company shall assign all of its right, title and interest in this Agreement as of the date of such event to such Person, and the Company shall cause such Person, by written agreement in form and substance reasonably satisfactory to the Executive, to expressly assume and agree to perform from and after the date of such assignment all of the terms, conditions and provisions imposed by this Agreement upon the Company. Failure of the Company to obtain such agreement prior to the effective date of such Sale of Business shall be a breach of this Agreement constituting "Good Reason" hereunder, except that for purposes of implementing the foregoing, the date upon which such Sale of Business becomes effective shall be deemed the Termination Date. In case of such assignment by the Company and of assumption and agreement by such Person, as used in this Agreement, "Company" shall thereafter mean such Person which executes and delivers the agreement provided for in this Section 16 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law, and this Agreement shall inure to the benefit of, and be enforceable by, such Person. The Executive shall, in the Executive's discretion, be entitled to proceed against any or all of such Persons, any Person which theretofore was such a successor to the Company (as defined in the first paragraph of this Agreement) and the Company (as so defined) in any action to enforce any rights of the Executive hereunder. Except as provided in this Subsection, this Agreement shall not be assignable by the Company. This Agreement shall not be terminated by the voluntary or involuntary dissolution of the Company. (b) This Agreement and all rights of the Executive shall inure to the benefit of and be enforceable by the Executive's personal or legal representatives, executors, administrators, heirs and beneficiaries. All amounts payable to the Executive under Sections 7, 8, 9, 10, 11 and 14 if the Executive had lived shall be paid, in the event of the Executive's death, to the Executive's estate, heirs and representatives; provided, however, that the foregoing shall not be construed to modify any terms of any benefit plan of the Employer, as such terms are in effect on the Effective Date, that expressly govern benefits under such plan in the event of the Executive's death. 17. Severability. The provisions of this Agreement shall be regarded as divisible, and if any of said provisions or any part hereof are declared invalid or unenforceable by a court of competent jurisdiction, then the validity and enforceability of the remainder of such provisions or parts hereof and the applicability thereof shall not be affected thereby. 18. Amendment. This Agreement may not be amended or modified at any time except by written instrument executed by the Company and the Executive. 19. Withholding. The Employer shall be entitled to withhold from amounts to be paid to the Executive hereunder any federal, state or local withholding or other taxes or charges which it is from time to time required to withhold; provided, that the amount so withheld shall not exceed the minimum amount required to be withheld by law. The Employer shall be entitled to rely on an opinion of nationally recognized tax counsel if any question as to the amount or requirement of any such withholding shall arise. 20. Certain Rules of Construction. No party shall be considered as being responsible for the drafting of this Agreement for the purpose of applying any rule construing ambiguities against the drafter or otherwise. No draft of this Agreement shall be taken into account in construing this Agreement. Any provision of this Agreement which requires an agreement in writing shall be deemed to require that the writing in question be signed by the Executive and an authorized representative of the Company. 12 21. Governing Law; Resolution of Disputes. (a) This Agreement and the rights and obligations hereunder shall be governed by and construed in accordance with the internal laws of the State of Wisconsin (excluding any choice of law rules that may direct the application of the laws of another jurisdiction) except that Section 21(b) shall be construed in accordance with the Federal Arbitration Act if arbitration is chosen by the Executive as the method of dispute resolution. (b) Any dispute arising out of this Agreement shall, at the Executive's election, be determined by arbitration under the rules of the American Arbitration Association then in effect (but subject to any evidentiary standards set forth in this Agreement), in which case both parties shall be bound by the arbitration award, or by litigation. Whether the dispute is to be settled by arbitration or litigation, the venue for the arbitration or litigation shall be Milwaukee, Wisconsin or, at the Executive's election, if the Executive is no longer residing or working in the Milwaukee, Wisconsin metropolitan area, in the judicial district encompassing the city in which the Executive resides; provided, that, if the Executive is not then residing in the United States, the election of the Executive with respect to such venue shall be either Milwaukee, Wisconsin or in the judicial district encompassing that city in the United States among the thirty cities having the largest population (as determined by the most recent United States Census data available at the Termination Date) that is closest to the Executive's residence. The parties consent to personal jurisdiction in each trial court in the selected venue having subject matter jurisdiction notwithstanding their residence or situs, and each party irrevocably consents to service of process in the manner provided hereunder for the giving of notices. 22. Notice. Notices given pursuant to this Agreement shall be in writing and, except as otherwise provided by Section 12(a)(iii), shall be deemed given when actually received by the Executive or actually received by the Company's Secretary or any officer of the Company other than the Executive. If mailed, such notices shall be mailed by United States registered or certified mail, return receipt requested, addressee only, postage prepaid, if to the Company, to WICOR, Inc., Attention: Secretary (or, if the Executive is then Secretary, to the Chief Executive Officer), 626 East Wisconsin Avenue, Milwaukee, Wisconsin 53202, or if to the Executive, at the address set forth below the Executive's signature to this Agreement, or to such other address as the party to be notified shall have theretofore given to the other party in writing. 23. Additional Payment. (a) If, notwithstanding the provisions of Section 8(a)(ii), but subject to subsection (b), it is ultimately determined by a court or pursuant to a final determination by the Internal Revenue Service that any portion of Total Payments is subject to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or any successor provision), then the Company shall pay to the Executive an additional amount (the "Gross-Up Payment") such that the net amount retained by the Executive after deduction of any Excise Tax and any interest charges or penalties in respect of the imposition of such Excise Tax (but not any federal, state or local income tax) on the Total Payments, and any federal, state and local income tax and Excise Tax upon the payment provided for by this Section 23 shall be equal to the Total Payments. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rates of taxation in the state and locality of the Executive's domicile for income tax purposes on the date the Gross-Up Payment is made, net of the maximum reduction in federal income taxes that could be obtained from deduction of such state and local taxes. (b) If legislation is enacted that would require the Company's shareholders to approve this Agreement, prior to a Change in Control, due solely to the provision contained in subsection (a) of this Section 23, then 13 (i) from and after such time as shareholder approval would be required, until shareholder approval is obtained as required by such legislation, subsection (a) shall be of no force and effect; (ii) if the Company seeks shareholder approval of any other agreement providing similar benefits to any other executive of the Company, then the Company shall seek shareholder approval of this Agreement at the same shareholders' meeting or meetings at which the shareholders consider any such other agreement; and (iii) the Company and the Executive shall use their best efforts to consider and agree in writing upon an amendment to this Section 23 such that, as amended, this Subsection would provide the Executive with the benefits intended to be afforded to the Executive by subsection (a) without requiring shareholder approval. 24. No Waiver. The Executive's or the Company's failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 25. Headings. The headings herein contained are for reference only and shall not affect the meaning or interpretation of any provision of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. WICOR, INC. By: Attest: EXECUTIVE (SEAL) [name] [address] 14 Exhibit A CERTAIN DEFINED TERMS For purposes of this Agreement, (a) Act. The term "Act" means the Securities Exchange Act of 1934, as amended. (b) Accrued Benefits. The term "Accrued Benefits" shall include the following amounts, payable as described herein: (i) all base salary for the time period ending with the Termination Date; (ii) reimbursement for any and all monies advanced in connection with the Executive's employment for reasonable and necessary expenses incurred by the Executive on behalf of the Company and its Affiliates for the time period ending with the Termination Date; (iii) any and all other cash earned through the Termination Date and deferred at the election of the Executive or pursuant to any deferred compensation plan then in effect; (iv) notwithstanding any provision of any bonus or incentive compensation plan applicable to the Executive, a lump sum amount, in cash, equal to the sum of (A) any bonus or incentive compensation that has been allocated or awarded to the Executive for a fiscal year or other measuring period under the plan that ends prior to the Termination Date but has not yet been paid (pursuant to Section 5(f) or otherwise) and (B) a pro rata portion to the Termination Date of the aggregate value of all contingent bonus or incentive compensation awards to the Executive for all uncompleted periods under the plan calculated as to each such award as if the Goals with respect to such bonus or incentive compensation award had been attained; and (v) all other payments and benefits to which the Executive (or in the event of the Executive's death, the Executive's surviving spouse or other beneficiary) may be entitled as compensatory fringe benefits or under the terms of any benefit plan of the Employer, including severance payments under the Employer's severance policies and practices in the form most favorable to the Executive that were in effect at any time during the 180-day period prior to the Effective Date. Payment of Accrued Benefits shall be made promptly in accordance with the Employer's prevailing practice with respect to clauses (i) and (ii) or, with respect to clauses (iii), (iv) and (v), pursuant to the terms of the benefit plan or practice establishing such benefits. (c) Affiliate and Associate. The terms "Affiliate" and "Associate" shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations of the Act. (d) Annual Cash Compensation. The term "Annual Cash Compensation" shall mean the sum of (A) the Executive's Annual Base Salary, plus (B) the highest of (1) the highest annual bonus or incentive compensation award earned by the Executive under any cash bonus or incentive compensation plan of the Company or any of its Affiliates during the three complete fiscal years of the Company immediately preceding the Termination Date or, if more favorable to the Executive, during the three complete fiscal years of the Company immediately preceding the Effective Date; (2) the Executive's bonus or incentive compensation Targeted Bonus for the fiscal year in which the Termination Date occurs; or (3) the highest average annual bonus and/or incentive compensation earned during the three complete fiscal years of the Company immediately preceding the Termination Date (or, if more favorable to the Executive, during the three complete fiscal years of the Company immediately preceding the Effective Date) under any cash bonus or incentive compensation plan of the Company or any of its Affiliates by the group of executives of the Company and its Affiliates participating under such plan during such fiscal years at a status or position comparable to that at which the Executive participated or would have participated pursuant to the Executive's most senior position at any time during the 180 days preceding the Effective Date or thereafter until the Termination Date. 15 (e) Cause. The Company may terminate the Executive's employment after the Effective Date for "Cause" only if the conditions set forth in paragraphs (i) and (ii) have been met and the Company otherwise complies with this Agreement: (i) (A) the Executive has committed any act of fraud, embezzlement or theft in connection with the Executive's duties as an Executive or in the course of employment with the Company and/or its subsidiaries; (B) the Executive has willfully and continually failed to perform substantially the Executive's duties with the Company or any of its Affiliates (other than any such failure resulting from incapacity due to physical or mental illness or injury, regardless of whether such illness or injury is job-related) for an appropriate period, which shall not be less than 30 days, after the Chief Executive Officer of the Company (or, if the Executive is then Chief Executive Officer, the Board) has delivered a written demand for performance to the Executive that specifically identifies the manner in which the Chief Executive Officer (or the Board, as the case may be) believes the Executive has not substantially performed the Executive's duties; (C) the Executive has willfully engaged in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company; (D) the Executive has willfully and wrongfully disclosed any trade secret or other confidential information of the Company or any of its Affiliates; or (E) the Executive has engaged in any Competitive Activity; and in any such case the act or omission shall have been determined by the Board to have been materially harmful to the Company and its subsidiaries taken as a whole. For purposes of this provision, (1) no act or failure to act on the part of the Executive shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company and (2) any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. (ii) (A) The Company terminates the Executive's employment by delivering a Notice of Termination to the Executive, (B) prior to the time the Company has terminated the Executive's employment pursuant to a Notice of Termination, the Board, by the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board, has adopted a resolution finding that the Executive was guilty of conduct set forth in this definition of Cause, and specifying the particulars thereof in detail, at a meeting of the Board called and held for the purpose of considering such termination (after reasonable notice to the Executive and an opportunity for the Executive, together with the Executive's counsel, to be heard before the Board) and (C) the Company delivers a copy of such resolution to the Executive with the Notice of Termination at the time the Executive's employment is terminated. In the event of a dispute regarding whether the Executive's employment has been terminated for Cause, no claim by the Company that the Company has terminated the Executive's employment for Cause in accordance with this Agreement shall be given effect unless the Company establishes by clear and convincing evidence that the Company has complied with the requirements of this Agreement to terminate the Executive's employment for Cause. 16 (f) Change in Control. A "Change in Control" shall be deemed to have occurred if the event set forth in any one of the following paragraphs shall have occurred: (i) any Person (other than (A) the Company or any of its subsidiaries, (B) a trustee or other fiduciary holding securities under any employee benefit plan of the Company or any of its subsidiaries, (C) an underwriter temporarily holding securities pursuant to an offering of such securities or (D) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock in the Company ("Excluded Persons")) is or becomes the "Beneficial Owner" (as such term is defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after January 1, 1997 pursuant to express authorization by the Board that refers to this exception) representing 25% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or (ii) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, on January 1, 1997, constituted the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A under the Act) whose appointment or election by the Board or nomination for election by the Company's shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on January 1, 1997 or whose appointment, election or nomination for election was previously so approved; or (iii) the shareholders of the Company approve a merger, consolidation or share exchange of the Company with any other corporation or approve the issuance of voting securities of the Company in connection with a merger, consolidation or share exchange of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable stock exchange requirements, other than (A) a merger, consolidation or share exchange which would result in the voting securities of the Company outstanding immediately prior to such merger, consolidation or share exchange continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 50% of the combined voting power of the voting securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger, consolidation or share exchange, or (B) a merger, consolidation or share exchange effected to implement a recapitalization of the Company (or similar transaction) in which no Person (other than an Excluded Person) is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates after January 1, 1997 pursuant to express authorization by the Board that refers to this exception) representing 25% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company's then outstanding voting securities; or 17 (iv) the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets (in one transaction or a series of related transactions within any period of 24 consecutive months), other than a sale or disposition by the Company of all or substantially all of the Company's assets to an entity at least 75% of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportions as their ownership of the Company immediately prior to such sale. Notwithstanding the foregoing, no "Change in Control" shall be deemed to have occurred if there is consummated any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity that owns all or substantially all of the assets or voting securities of the Company immediately following such transaction or series of transactions. (g) Code. The term "Code" means the Internal Revenue Code of 1986, including any amendments thereto or successor tax codes thereof. (h) Competitive Activity. The Executive shall engage in a "Competitive Activity" if the Executive participates in the management of, is employed by or owns any interest in any business enterprise at a location within the United States that engages in substantial competition with the Company or its subsidiaries, where such enterprise's revenues from any competitive activities amount to 10% or more of such enterprise's consolidated net revenues and sales for its most recently completed fiscal year; provided, however, that owning stock or other securities of a competitor amounting to less than five percent of the outstanding capital stock of such competitor shall not be a "Competitive Activity". (i) Covered Termination. The term "Covered Termination" means any termination of the Executive's employment during the Employment Period where the Termination Date or the date Notice of Termination is delivered is any date on or prior to the end of the Employment Period. (j) Effective Date. The term "Effective Date" shall mean the first date on which a Change in Control occurs. Anything in this Agreement to the contrary notwithstanding, if (i) a Change in Control occurs, (ii) the Executive's employment with the Employer terminates (whether by the Company, the Executive or otherwise) within 180 days prior to the Change in Control and (iii) it is reasonably demonstrated by the Executive that (A) any such termination of employment by the Employer (1) was at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (2) otherwise arose in connection with or in anticipation of a Change in Control, or (B) any such termination of employment by the Executive took place subsequent to the occurrence of an event described in clause (ii), (iii), (iv) or (v) of the definition of "Good Reason" which event (1) occurred at the request of a third party who has taken steps reasonably calculated to effect a Change in Control or (2) otherwise arose in connection with or in anticipation of a Change in Control, then for all purposes of this Agreement the term "Effective Date" shall mean the day immediately prior to the date of such termination of employment. (k) Employer. The term "Employer" means the Company and/or any subsidiary of the Company that employed the Executive immediately prior to the Effective Date. 18 (l) Good Reason. The Executive shall have a "Good Reason" for termination of employment on or after the Effective Date if the Executive determines in good faith that any of the following events has occurred: (i) any breach of this Agreement by the Company, including specifically any breach by the Company of its agreements contained in Section 4, Section 5 or Section 6, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith that the Company remedies promptly after receipt of notice thereof given by the Executive; (ii) any reduction in the Executive's base salary, percentage of base salary available as incentive compensation or bonus opportunity or benefits, in each case relative to those most favorable to the Executive in effect at any time during the 180-day period prior to the Effective Date or, to the extent more favorable to the Executive, those in effect after the Effective Date; (iii) a material adverse change, without the Executive's prior written consent, in the Executive's working conditions or status with the Company or the Employer from such working conditions or status in effect during the 180-day period prior to the Effective Date or, to the extent more favorable to the Executive, those in effect after the Effective Date, including but not limited to (A) a material change in the nature or scope of the Executive's titles, authority, powers, functions, duties, reporting requirements or responsibilities, or (B) a material reduction in the level of support services, staff, secretarial and other assistance, office space and accoutrements, but excluding for this purpose an isolated, insubstantial and inadvertent event not occurring in bad faith that the Company remedies promptly after receipt of notice thereof given by the Executive; (iv) the relocation of the Executive's principal place of employment to a location more than 35 miles from the Executive's principal place of employment on the date 180 days prior to the Effective Date; (v) the Employer requires the Executive to travel on Employer business to a materially greater extent than was required during the 180-day period prior to the Effective Date; (vi) failure by the Company to obtain the agreement referred to in Section 16(a) as provided therein; (vii) the Executive has continued the Executive's employment through the first anniversary of the Change in Control; provided, however, that the Executive may exercise the Executive's rights to terminate the Executive's employment under this clause (vii) only if the Executive delivers the Notice of Termination during the 60 days following such first anniversary; or (viii) the Company or the Employer terminates the Executive's employment after a Change in Control without delivering a Notice of Termination in accordance with Section 12; 19 provided that (A) any such event occurs following the Effective Date or (B) in the case of any event described in clauses (ii), (iii), (iv) or (v) above, such event occurs on or prior to the Effective Date under circumstances described in clause (iii)(B)(1) or (iii)(B)(2) of the definition of "Effective Date." In the event of a dispute regarding whether the Executive terminated the Executive's employment for "Good Reason" in accordance with this Agreement, no claim by the Company that such termination does not constitute a Covered Termination shall be given effect unless the Company establishes by clear and convincing evidence that such termination does not constitute a Covered Termination. Any election by the Executive to terminate the Executive's employment for Good Reason shall not be deemed a voluntary termination of employment by the Executive for purposes of any other employee benefit or other plan. (m) Normal Retirement Date. The term "Normal Retirement Date" means the date the Executive reaches "Normal Retirement Age" as defined in the Wisconsin Gas Company Pension Plan for Non-Union Employees as in effect on the date hereof, or the corresponding date under any successor plan of the Employer as in effect on the Effective Date. (n) Notice of Termination. The term "Notice of Termination" means a written notice as contemplated by Section 12. (o) Person. The term "Person" shall have the meaning given in Section 3(a)(9) of the Act, as modified and used in Sections 13(d) and 14(d) thereof. (p) Termination Date. Except as otherwise provided in Section 9(b) and Section 16(a), the term "Termination Date" means (i) if the Executive's employment is terminated by the Executive's death, the date of death; (ii) if the Executive's employment is terminated by reason of voluntary early retirement, as agreed in writing by the Company and the Executive, the date of such early retirement that is set forth in such written agreement; (iii) if the Executive's employment is terminated for purposes of this Agreement by reason of disability pursuant to Section 11, thirty days after the Notice of Termination is given; (iv) if the Executive's employment is terminated by the Executive voluntarily (other than for Good Reason), the date the Notice of Termination is given; and (v) if the Executive's employment is terminated by the Company (other than by reason of disability pursuant to Section 11) or by the Executive for Good Reason, thirty days after the Notice of Termination is given. Notwithstanding the foregoing, 20 (A) If the Executive shall in good faith give a Notice of Termination for Good Reason and the Company notifies the Executive that a dispute exists concerning the termination within the fifteen-day period following receipt thereof, then the Executive may elect to continue the Executive's employment during such dispute and the Termination Date shall be determined under this paragraph. If the Executive so elects and it is thereafter determined that the Executive terminated the Executive's employment for Good Reason in accordance with this Agreement, then the Termination Date shall be the earlier of (1) the date on which the dispute is finally determined, either (x) by mutual written agreement of the parties or (y) in accordance with Section 21 or (2) the date of the Executive's death. If the Executive so elects and it is thereafter determined that the Executive did not terminate the Executive's employment for Good Reason in accordance with this Agreement, then the employment of the Executive hereunder shall continue after such determination as if the Executive had not delivered the Notice of Termination asserting Good Reason and there shall be no Termination Date arising out of such Notice. In either case, this Agreement continues, until the Termination Date, if any, as if the Executive had not delivered the Notice of Termination except that, if it is finally determined that the Executive terminated the Executive's employment for Good Reason in accordance with this Agreement, then the Executive shall in no case be denied the benefits described in Section 8 (including a Termination Payment) based on events occurring after the Executive delivered the Executive's Notice of Termination. (B) If an opinion is required to be delivered pursuant to Section 8(a)(ii) and such opinion shall not have been delivered, then the Termination Date shall be the date on which such opinion is delivered. (C) Except as provided in paragraph (A) above, if the party receiving the Notice of Termination notifies the other party that a dispute exists concerning the termination within the fifteen-day period following receipt thereof and it is finally determined that termination of the Executive's employment for the reason asserted in such Notice of Termination was not in accordance with this Agreement, then (1) if such Notice was delivered by the Executive, then the Executive will be deemed to have voluntarily terminated the Executive's employment other than for Good Reason by means of such Notice and (2) if delivered by the Company, then the Company will be deemed to have terminated the Executive's employment other than by reason of death, disability or Cause by means of such Notice. EX-27 3 EXHIBIT 27
UT This schedule contains summary financial information extracted from the WICOR, Inc. FORM 10-Q for the six months ended June 30, 1997 and is qualified in its entirety by reference to such financial statements and the related footnotes. 1,000 6-MOS DEC-31-1997 JUN-30-1997 PER-BOOK 375,783 62,591 313,445 240,380 0 992,199 18,443 225,970 143,702 388,115 0 0 169,056 27,000 150,000 5,840 3,652 0 0 0 398,536 992,199 570,670 20,720 507,364 528,084 42,586 12 42,598 8,375 34,223 0 34,223 15,468 231 90,013 1.86 1.86
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