Exchange and Registration Rights Agreement



 Exhibit 4.5 
 American Water Capital Corp. 
 6.085% Senior Notes due 2017 
 6.593% Senior Notes due 2037 
 Support Agreement from 
 American Water Works Company, Inc. 
  

 Exchange and Registration
Rights Agreement 
 October 22, 2007 
 Goldman, Sachs & Co., 
 Citigroup Global Markets Inc., 
 Merrill Lynch, Pierce, Fenner & Smith Incorporated, 
 Credit Suisse Securities (USA) LLC, 
 As representatives (the “Representatives”) of the several Purchasers 
     named in Schedule I to the Purchase Agreement 
 c/o Goldman, Sachs & Co. 
 85 Broad Street 
 New York, New York 10004 
 Ladies and Gentlemen: 
 American Water Capital Corp., a
Delaware corporation (the “Company”), proposes to issue and sell to the Purchasers (as defined herein) upon the terms set forth in the Purchase Agreement (as defined herein) three series of debt securities, consisting of its 6.085% Senior
Notes due 2017 and of its 6.593% Senior Notes due 2037, which have the benefit of the Support Agreement issued by American Water Works Company, Inc. As an inducement to the Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company agrees with the Purchasers for the benefit of holders (as defined herein) from time to time of the Registrable Securities (as defined herein) as follows: 
 1. Certain Definitions. For purposes of this Exchange and Registration Rights Agreement, the following terms shall have the following respective
meanings: 
 “Base Interest” shall mean the interest that would otherwise accrue on the Securities under the
terms thereof and the Indenture, without giving effect to the provisions of this Agreement. 
 The term
“broker-dealer” shall mean any broker or dealer registered with the Commission under the Exchange Act. 
 “Closing Date” shall mean the date on which the Securities are initially issued. 
  

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 “Commission” shall mean the United States Securities and Exchange
Commission, or any other federal agency at the time administering the Exchange Act or the Securities Act, whichever is the relevant statute for the particular purpose. 
 “Effective Time,” in the case of (i) an Exchange Registration, shall mean the time and date as of which the
Commission declares the Exchange Registration Statement effective or as of which the Exchange Registration Statement otherwise becomes effective and (ii) a Shelf Registration, shall mean the time and date as of which the Commission declares the
Shelf Registration Statement effective or as of which the Shelf Registration Statement otherwise becomes effective. 
 “Electing Holder” shall mean any holder of Registrable Securities that has returned a completed and signed Notice and Questionnaire to the Company in accordance with Section 3(d)(ii) or 3(d)(iii) hereof. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, or any successor thereto, as the same shall be amended
from time to time. 
 “Exchange Offer” shall have the meaning assigned thereto in Section 2(a) hereof.

 “Exchange Registration” shall have the meaning assigned thereto in Section 3(c) hereof. 

“Exchange Registration Statement” shall have the meaning assigned thereto in Section 2(a) hereof. 
 “Exchange Securities” shall have the meaning assigned thereto in Section 2(a) hereof. 
 “Free Writing Prospectus” shall mean each free writing prospectus (as defined in Rule 405 under the Securities Act)
prepared by or on behalf of the Company or used or referred to by the Company in connection with the sale of the Securities or the Exchange Securities. 
 The term “holder” shall mean each of the Purchasers and other persons who acquire Registrable Securities from time to time (including any successors or assigns), in each case for so long as such
person owns any Registrable Securities. 
 “Indenture” shall mean the Indenture, dated as of October 22,
2007, among the Company and Wells Fargo Bank, N.A., as Trustee, as the same shall be amended from time to time. 
 “Initial Report Filing Date” shall mean the date that is 10 business days after the date on which American Water Works Company, Inc. files with the Commission the first periodic report required to be filed after the
effective date of the registration statement on Form S-1 relating to a public offering of its common stock. 
 “Notice
and Questionnaire” means a Notice of Registration Statement and Selling Securityholder Questionnaire substantially in the form of Exhibit A hereto. 
 The term “person” shall mean a corporation, association, partnership, organization, business, individual, government or
political subdivision thereof or governmental agency. 
  

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 “Purchase Agreement” shall mean the Purchase Agreement, dated as of
October 16, 2007, among the Purchasers, the Support Provider and the Company relating to the Securities. 
 “Purchasers” shall mean the Purchasers named in Schedule I to the Purchase Agreement. 
 “Registrable Securities” shall mean the Securities; provided, however, that a Security shall cease to be a Registrable Security when (i) in the circumstances contemplated by Section 2(a) hereof, the
Security has been exchanged for an Exchange Security in an Exchange Offer as contemplated in Section 2(a) hereof (provided that any Exchange Security that, pursuant to the last two sentences of Section 2(a), is included in a
prospectus for use in connection with resales by broker-dealers shall be deemed to be a Registrable Security with respect to Sections 5, 6 and 9 until resale of such Registrable Security has been effected within the 180-day period referred to
in Section 2(a)); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf Registration Statement registering such Security under the Securities Act has been declared or becomes effective and such Security has been sold
or otherwise transferred by the holder thereof pursuant to and in a manner contemplated by such effective Shelf Registration Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances in which any legend borne by such
Security relating to restrictions on transferability thereof, under the Securities Act or otherwise, is removed by the Company or pursuant to the Indenture; (iv) such Security is eligible to be sold pursuant to paragraph (k) of
Rule 144 or any successor to such rule; or (v) such Security shall cease to be outstanding. 
 “Registration
Default” shall have the meaning assigned thereto in Section 2(c) hereof. 
 “Registration
Expenses” shall have the meaning assigned thereto in Section 4 hereof. 
 “Resale Period” shall
have the meaning assigned thereto in Section 2(a) hereof. 
 “Restricted Holder” shall mean (i) a
holder that is an affiliate of the Company within the meaning of Rule 405, (ii) a holder who acquires Exchange Securities outside the ordinary course of such holder’s business, (iii) a holder who has arrangements or
understandings with any person to participate in the Exchange Offer for the purpose of distributing Exchange Securities and (iv) a holder that is a broker-dealer, but only with respect to Exchange Securities received by such broker-dealer
pursuant to an Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer directly from the Company. 
 “Rule 144,” “Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated under the Securities Act (or any successor provision), as the same shall be amended from time to time.

 “Securities” shall mean, collectively, the 6.085% Senior Notes due 2017 and 6.593% Senior Notes due 2037
of the Company to be issued and sold to the Purchasers, and securities issued in exchange therefor or in lieu thereof pursuant to the Indenture. Each Security is entitled to the benefit of the Support Agreement (the “Support”) and, unless
the context otherwise requires, any reference herein to a “Security,” an “Exchange Security” or a “Registrable Security” shall include a reference to the related Support. 
  

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 “Securities Act” shall mean the Securities Act of 1933, or any successor
thereto, as the same shall be amended from time to time. 
 “Shelf Registration” shall have the meaning
assigned thereto in Section 2(b) hereof. 
 “Shelf Registration Statement” shall have the meaning
assigned thereto in Section 2(b) hereof. 
 “Special Interest” shall have the meaning assigned thereto
in Section 2(c) hereof. 
 “Support Agreement” shall have the meaning assigned thereto in the Indenture.

 “Support Provider” shall mean American Water Works Company, Inc. 
 “Suspension Period” has the meaning assigned thereto in Section 2(d) hereof. 
 “Trust Indenture Act” shall mean the Trust Indenture Act of 1939, or any successor thereto, and the rules, regulations
and forms promulgated thereunder, all as the same shall be amended from time to time. 
 Unless the context otherwise requires, any reference
herein to a “Section” or “clause” refers to a Section or clause, as the case may be, of this Exchange and Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder” and
other words of similar import refer to this Exchange and Registration Rights Agreement as a whole and not to any particular Section or other subdivision. 
 2. Registration Under the Securities Act. 
 (a) Except as set forth in
Section 2(b) below, the Company agrees to file under the Securities Act no later than the earlier of (i) the Initial Report Filing Date and (ii) 270 days after the Closing Date, one or more registration statements relating to an
offer to exchange (each such registration statement, an “Exchange Registration Statement”, and each such offer, an “Exchange Offer”), any and all of the Securities of a series for a like aggregate principal amount of debt
securities issued by the Company and with the benefit of the Support Agreement by the Support Provider, which debt securities and Support are substantially identical to the Securities of such series and the related Support, respectively (and are
entitled to the benefits of a trust indenture which is substantially identical to the Indenture or is the Indenture and which has been qualified under the Trust Indenture Act), except that they have been registered pursuant to an effective
registration statement under the Securities Act and do not contain provisions for the additional interest contemplated in Section 2(c) below (any such new debt securities hereinafter called “Exchange Securities”). The Company agrees
to use its reasonable efforts to cause an Exchange Registration Statement for each Exchange Offer to become effective under the Securities Act no later than the earlier of (i) 60 days after the Initial Report Filing Date and (ii) 330 days
after the Closing Date. The Exchange Offers will be registered under the Securities Act on the appropriate form and will comply with all applicable tender offer rules and regulations under the Exchange Act. Unless an Exchange Offer would not be
permitted by applicable law or Commission policy, the Company further agrees to use its reasonable efforts to commence and complete each Exchange Offer no later than 45 days after each respective registration statement has become effective,
hold each Exchange Offer open for at least 30 days and exchange 

  

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Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn on or prior to the expiration of an Exchange Offer. An
Exchange Offer will be deemed to have been “completed” only if the debt securities and related Support received by holders other than Restricted Holders in such Exchange Offer for Registrable Securities are, upon receipt, transferable by
each such holder without restriction under the Securities Act and the Exchange Act and without material restrictions under the blue sky or securities laws of a substantial majority of the States of the United States of America. An Exchange Offer
shall be deemed to have been completed upon the earlier to occur of (i) the Company having exchanged the Exchange Securities for all outstanding Registrable Securities of a series pursuant to such Exchange Offer and (ii) the Company having
exchanged, pursuant to such Exchange Offer, Exchange Securities for all Registrable Securities that have been properly tendered and not withdrawn before the expiration of such Exchange Offer, which shall be on a date that is at least 30 days
following the commencement of such Exchange Offer. The Company agrees (x) to include in each Exchange Registration Statement a prospectus for use in any resales by any holder of Exchange Securities that is a broker dealer and (y) to keep
each Exchange Registration Statement effective for a period (the “Resale Period”) beginning when Exchange Securities are first issued in each Exchange Offer and ending upon the earlier of the expiration of the 180th day after each Exchange
Offer has been completed or such time as such broker-dealers no longer own any Registrable Securities of each respective series. With respect to each Exchange Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Sections 6(a), (c), (d) and (e) hereof. 
 (b) If (i) on or
prior to the time an Exchange Offer in respect of Securities of a series is completed existing Commission interpretations are changed such that the debt securities or the related Support received by holders other than Restricted Holders in the
Exchange Offer for Registrable Securities of such series are not or would not be, upon receipt, transferable by each such holder without restriction under the Securities Act, (ii) an Exchange Offer has not been completed within the time periods
required pursuant to Section 2(a) other than because of a failure of any holder of Registrable Securities of such series to exchange such Registrable Securities or (iii) any holder of Registrable Securities of a series notifies the Company
prior to the 20th day following consummation of an Exchange Offer in respect of such series that (a) it is prohibited by law or Commission policy from participating in such Exchange Offer, (b) that it may not resell the Securities acquired
by it in such Exchange Offer to the public without delivering a prospectus and the prospectus contained in such Exchange Registration Statement is not appropriate or available for such resales, or (c) that it is a broker-dealer and owns notes
acquired directly from the Company or an Affiliate of the Company, the Company shall, in lieu of (or, in the case of clause (iii), in addition to) conducting an Exchange Offer in respect of any series contemplated by Section 2(a), file
under the Securities Act no later than 30 days after the time such obligation to file arises, a “shelf” registration statement providing for the registration of, and the sale on a continuous or delayed basis by the holders of, all of
the Registrable Securities of such series, pursuant to Rule 415 or any similar rule that may be adopted by the Commission (such filing, the “Shelf Registration” and such registration statement, the “Shelf Registration
Statement”). The Company agrees to use its reasonable efforts (x) to cause such Shelf Registration Statement to become or be declared effective no later than 120 days after such Shelf Registration Statement is filed and, except as set
forth in Section 2(d), to keep such Shelf Registration Statement continuously effective for a period ending on the earlier of the second anniversary of its Effective Time or such time as there are no longer any 

  

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Registrable Securities of such series outstanding, provided, however, that no holder shall be entitled to be named as a selling securityholder in such
Shelf Registration Statement or to use the prospectus forming a part thereof for resales of Registrable Securities of such series unless such holder is an Electing Holder, and (y) after the Effective Time of such Shelf Registration Statement,
promptly upon the request of any holder of Registrable Securities of such series that is not then an Electing Holder, to take any action reasonably necessary to enable such holder to use the prospectus forming a part thereof for resales of
Registrable Securities of that series, including, without limitation, any action necessary to identify such holder as a selling securityholder in such Shelf Registration Statement, provided, however, that the Company shall not be required to
make more than one filing with the Commission per quarter for such purposes with respect to any series of Registrable Securities and that nothing in this Clause (y) shall relieve any such holder of the obligation to return a completed and
signed Notice and Questionnaire to the Company in accordance with Section 3(d)(iii) hereof. The Company further agrees to supplement or make amendments to such Shelf Registration Statement, as and when required by the rules, regulations or
instructions applicable to the registration form used by the Company for such Shelf Registration Statement or by the Securities Act or rules and regulations thereunder for shelf registration, and the Company agrees to furnish to each Electing Holder
copies of any such supplement or amendment prior to its being used or promptly following its filing with the Commission. 
 (c) In the event that (i) the Company has not filed an Exchange Registration Statement or Shelf Registration Statement in respect of any series of Securities on or before the date on which such registration statement is required to be
filed pursuant to Section 2(a) or 2(b), respectively, or (ii) any such Exchange Registration Statement or Shelf Registration Statement has not become effective or been declared effective by the Commission on or before the date on which
such registration statement is required to become or be declared effective pursuant to Section 2(a) or 2(b), respectively (the “Effectiveness Target Date”), or (iii) any such Exchange Offer has not been completed within
45 days after the Effectiveness Target Date with respect to such Exchange Registration Statement relating to that Exchange Offer (if such Exchange Offer is then required to be made) or (iv) any Exchange Registration Statement or Shelf
Registration Statement required by Section 2(a) or 2(b) hereof is filed and declared effective but shall thereafter either be withdrawn by the Company or shall become subject to an effective stop order issued pursuant to Section 8(d) of
the Securities Act suspending the effectiveness of such registration statement (except as specifically permitted herein) without being succeeded immediately by an additional registration statement filed and declared effective or (v) any
Suspension Period (as defined in Section 2(d)) exceeds 45 days in any 90 day period or 90 days in the aggregate during any consecutive 12-month period (subject to Section 2(d) hereof, each such event referred to in clauses (i) through
(v), a “Registration Default” and each period during which a Registration Default has occurred and is continuing, a “Registration Default Period”), then, as liquidated damages for such Registration Default, subject to the
provisions of Sections 2(d) and 9(b) hereof, special interest (“Special Interest”), in addition to the Base Interest, shall accrue on such series of the Securities in respect of which a Registration Default shall have occurred at a
per annum rate of 0.25% for the first 90 days of the Registration Default Period, at a per annum rate of 0.50% for the remaining portion of the Registration Default Period. 
 (d) The Company may suspend the use of (i) any Shelf Registration Statement or (ii) any Free Writing Prospectus for a period (a
“Suspension Period”) not to exceed 45 days in any consecutive 90-day period or an aggregate of 90 days in any consecutive 

  

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12-month period if the Board of Directors of the Company shall have determined in good faith that because of valid business reasons (not including avoidance
of the Company’s obligations hereunder), including, without limitation, the acquisition or divestiture of assets, actual or pending corporate developments, public filings with the SEC and similar events, it is in the best interests of the
Company to suspend such use, and prior to suspending such use the Company provides the Holders with written notice of such suspension, which notice need not specify the nature of the event giving rise to such suspension. The Company shall not be
obligated to pay Special Interest as a result of exercising its rights under this Section 2(d) or for any period during a Suspension Period, except as provided in Section 2(c)(v) above. 
 (e) The Company shall take, and shall cause the Support Provider to take, all actions reasonably necessary or advisable to be taken by it
to ensure that the transactions contemplated herein are effected as so contemplated, including all actions necessary or desirable to register the Support under the registration statement contemplated in Section 2(a) or 2(b) hereof, as
applicable. 
 (f) Any reference herein to a registration statement as of any time shall be deemed to include any document
incorporated, or deemed to be incorporated, therein by reference as of such time and any reference herein to any post-effective amendment to a registration statement as of any time shall be deemed to include any document incorporated, or deemed to
be incorporated, therein by reference as of such time. 
 3. Registration Procedures. 
 If the Company files a registration statement pursuant to Section 2(a) or Section 2(b), the following provisions shall apply: 
 (a) At or before the Effective Time of any Exchange Offer or the Shelf Registration, as the case may be, the Company shall qualify the
Indenture under the Trust Indenture Act of 1939. 
 (b) In the event that such qualification would require the appointment of
a new trustee under the Indenture, the Company shall appoint a new trustee thereunder pursuant to the applicable provisions of the Indenture. 
 (c) In connection with the Company’s obligations with respect to any registration of Exchange Securities as contemplated by Section 2(a) (an “Exchange Registration”), if applicable, the Company
shall, as soon as practicable (or as otherwise specified): 
 (i) prepare and file with the Commission no later than the
earlier of (x) the Initial Report Filing Date and (y) 270 days after the Closing Date, an Exchange Registration Statement in respect of a series of Securities on any form which may be utilized by the Company and which shall permit an
Exchange Offer in respect of such series and resales of such series of Exchange Securities by broker-dealers during the Resale Period to be effected as contemplated by Section 2(a), and use its reasonable efforts to cause such Exchange
Registration Statement to become effective no later than the earlier of (x) 60 days after the Initial Report Filing Date and (y) 330 days after the Closing Date; 
  


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 (ii) as soon as reasonably practicable prepare and file with the Commission such
amendments and supplements to such Exchange Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Exchange Registration Statement for the periods and purposes contemplated in
Section 2(a) hereof and as may be required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Exchange Registration Statement, and promptly provide each broker-dealer holding Exchange
Securities of such series with such number of copies of the prospectus included therein (as then amended or supplemented), in conformity in all material respects with the requirements of the Securities Act and the Trust Indenture Act and the rules
and regulations of the Commission thereunder, as such broker-dealer reasonably may request prior to the expiration of the Resale Period, for use in connection with resales of such Exchange Securities; 
 (iii) promptly notify each broker-dealer that has requested or received copies of the prospectus included in such registration statement,
and confirm such advice in writing, (A) when such Exchange Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post effective amendment has been filed, and, with respect to such Exchange
Registration Statement or any post effective amendment, when the same has become effective, (B) of any comments relevant to the broker-dealer by the Commission and by the blue sky or securities commissioner or regulator of any state with
respect thereto or any request by the Commission for amendments or supplements to such Exchange Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop order suspending the
effectiveness of such Exchange Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company contemplated by Section 5 cease to be true and
correct in all material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of such Exchange Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, or (F) at any time during the Resale Period when a prospectus is required to be delivered under the Securities Act, that such Exchange Registration Statement, prospectus, prospectus amendment or supplement or post
effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder or contains an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
 (iv) in the event that the Company would be required, pursuant to Section 3(c)(iii)(F) above, to notify any broker-dealers
holding Exchange Securities, to reasonably promptly prepare and furnish to each such holder a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of such Exchange Securities during the
Resale Period, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and shall not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  

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 (v) use its reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of such Exchange Registration Statement or any post effective amendment thereto at the earliest practicable date; 
 (vi) use its reasonable efforts to (A) register or qualify the Exchange Securities of a series under the securities laws or blue sky laws of such jurisdictions as are contemplated by Section 2(a) no later than the commencement of
such Exchange Offer, (B) keep such registrations or qualifications in effect and comply with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions until the expiration of the Resale Period and
(C) take any and all other actions as may be reasonably necessary to enable each broker-dealer holding Exchange Securities to consummate the disposition thereof in such jurisdictions; provided, however, that neither the Company nor the
Support Provider shall be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the requirements of this Section 3(c)(vi), (2) consent
to general service of process in any such jurisdiction or (3) make any changes to its certificate of incorporation or by laws or any agreement between it and its stockholders; 
 (vii) use its reasonable efforts to obtain the consent or approval of each governmental agency or authority, whether federal, state or
local, which may be required to effect such Exchange Registration, such Exchange Offer and the offering and sale of Exchange Securities of a series by broker-dealers during the Resale Period; 
 (viii) provide a CUSIP number for all Exchange Securities, not later than the applicable Effective Time; 
 (ix) comply with all applicable rules and regulations of the Commission, and make generally available to its securityholders as soon as
practicable but no later than eighteen months after the effective date of such Exchange Registration Statement, an earning statement of the Company and its subsidiaries complying with Section 11(a) of the Securities Act (including, at the
option of the Company, Rule 158 thereunder). 
 (d) In connection with the Company’s obligations with respect to any
Shelf Registration, if applicable, the Company shall, as soon as reasonably practicable (or as otherwise specified): 
 (i)
prepare and file with the Commission, within the time periods specified in Section 2(b), a Shelf Registration Statement on any form which may be utilized by the Company and which shall register all of the Registrable Securities of a series for
resale by the holders thereof in accordance with such method or methods of disposition as may be specified by such of the holders as, from time to time, may be Electing Holders and use its reasonable efforts to cause such Shelf Registration
Statement to become effective within the time periods specified in Section 2(b); 
 (ii) not less than 30 calendar
days prior to the Effective Time of such Shelf Registration Statement, mail the Notice and Questionnaire to the holders of such Registrable Securities; no holder shall be entitled to be named as a selling securityholder in such Shelf Registration
Statement as of the Effective Time, and no 

  

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holder shall be entitled to use the prospectus forming a part thereof for resales of such Registrable Securities at any time, unless such holder has returned
a completed and signed Notice and Questionnaire to the Company by the deadline for response set forth therein; provided, however, holders of such Registrable Securities shall have at least 28 calendar days from the date on which the
Notice and Questionnaire is first mailed to such holders to return a completed and signed Notice and Questionnaire to the Company; 
 (iii) after the Effective Time of such Shelf Registration Statement, upon the request of any holder of such Registrable Securities that is not then an Electing Holder, promptly send a Notice and Questionnaire to such holder; provided
that the Company shall not be required to make more than one filing with the Commission per quarter for such purposes with respect to any series of Registrable Securities and that the Company shall not be required to take any action to name such
holder as a selling securityholder in such Shelf Registration Statement or to enable such holder to use the prospectus forming a part thereof for resales of such Registrable Securities until such holder has returned a completed and signed Notice and
Questionnaire to the Company; 
 (iv) as soon as practicable prepare and file with the Commission such amendments and
supplements to such Shelf Registration Statement and the prospectus included therein as may be necessary to effect and maintain the effectiveness of such Shelf Registration Statement for the period specified in Section 2(b) hereof and as may be
required by the applicable rules and regulations of the Commission and the instructions applicable to the form of such Shelf Registration Statement, and furnish to the Electing Holders copies of any such supplement or amendment simultaneously with
or prior to its being used or filed with the Commission; 
 (v) comply with the provisions of the Securities Act with respect
to the disposition of all of the Registrable Securities covered by such Shelf Registration Statement in accordance with the intended methods of disposition by the Electing Holders provided for in such Shelf Registration Statement; 
 (vi) provide (A) the Electing Holders, (B) the underwriters (which term, for purposes of this Exchange and Registration Rights
Agreement, shall include a person deemed to be an underwriter within the meaning of Section 2(a)(11) of the Securities Act), if any, thereof, (C) any sales or placement agent therefor, (D) counsel for any such underwriter or agent and
(E) not more than one counsel for all the Electing Holders (which counsel shall be reasonably satisfactory to the Company) the reasonable opportunity to review and comment on such Shelf Registration Statement, each prospectus included therein
or filed with the Commission and each amendment or supplement thereto; 
 (vii) for a reasonable period prior to the filing of
such Shelf Registration Statement, and throughout the period specified in Section 2(b), make available at reasonable times at the Company’s principal place of business or such other reasonable place for inspection by the persons referred
to in Section 3(d)(vi) who shall certify to the Company that they have a current intention to sell the Registrable Securities of such series pursuant to such Shelf Registration such financial and other information and books and records of the
Company, and cause the officers, 

  

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employees, counsel and independent certified public accountants of the Company to respond to such inquiries, as shall be reasonably necessary, in the
judgment of the respective counsel referred to in such Section, to conduct a reasonable investigation within the meaning of Section 11 of the Securities Act; provided, however, that each such party shall be required to maintain in
confidence and not to disclose to any other person any information or records reasonably designated by the Company as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its
inclusion in such registration statement or otherwise), or (B) such person shall be required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter
(subject to the requirements of such order, and only after such person shall have given the Company prompt prior written notice of such requirement), or (C) such information is required, in the reasonable judgment of the Company, to be set
forth in such Shelf Registration Statement or the prospectus included therein or in an amendment to such Shelf Registration Statement or an amendment or supplement to such prospectus in order that such Shelf Registration Statement, prospectus,
amendment or supplement, as the case may be, complies with applicable requirements of the federal securities laws and the rules and regulations of the Commission and does not contain an untrue statement of a material fact or omit to state therein a
material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
 (viii) promptly notify each of the Electing Holders, any sales or placement agent therefor and any underwriter thereof (which notification may be made through any managing underwriter that is a representative of such
underwriter for such purpose) and confirm such advice in writing, (A) when such Shelf Registration Statement or the prospectus included therein or any prospectus amendment or supplement or post effective amendment has been filed, and, with
respect to such Shelf Registration Statement or any post effective amendment, when the same has become effective, (B) of any comments by the Commission and by the blue sky or securities commissioner or regulator of any state with respect
thereto or any request by the Commission for amendments or supplements to such Shelf Registration Statement or prospectus or for additional information, (C) of the issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation or threatening of any proceedings for that purpose, (D) if at any time the representations and warranties of the Company contemplated by Section 3(d)(xvii) or Section 5 cease to be
true and correct in all material respects, (E) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities of such series for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, or (F) if at any time when a prospectus is required to be delivered under the Securities Act, that such Shelf Registration Statement, prospectus, prospectus amendment or supplement or post
effective amendment does not conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder or contains an untrue statement of a material
fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 
  

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 (ix) use its reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of such registration statement or any post effective amendment thereto at the earliest practicable date; 
 (x)
if requested by any managing underwriter or underwriters, any placement or sales agent or any Electing Holder, promptly incorporate in a prospectus supplement or post effective amendment such information as is required, in the reasonable opinion of
counsel to such person and the Company, by the applicable rules and regulations of the Commission and as such managing underwriter or underwriters, such agent or such Electing Holder specifies should be included therein relating to the terms of the
sale of such Registrable Securities, including information with respect to the principal amount of such Registrable Securities being sold by such Electing Holder or agent or to any underwriters, the name and description of such Electing Holder,
agent or underwriter, the offering price of such Registrable Securities and any discount, commission or other compensation payable in respect thereof, the purchase price being paid therefor by such underwriters and with respect to any other terms of
the offering of such Registrable Securities to be sold by such Electing Holder or agent or to such underwriters; and make all required filings of such prospectus supplement or post effective amendment promptly after notification of the matters to be
incorporated in such prospectus supplement or post effective amendment; 
 (xi) furnish to each Electing Holder, each
placement or sales agent, if any, therefor, each underwriter, if any, thereof and the respective counsel referred to in Section 3(d)(vi) an executed copy (or, in the case of an Electing Holder, a conformed copy) of such Shelf Registration
Statement, each such amendment and supplement thereto (in each case including all exhibits thereto (in the case of an Electing Holder of Registrable Securities, upon request) and documents incorporated by reference therein) and such number of copies
of such Shelf Registration Statement (excluding exhibits thereto and documents incorporated by reference therein) and of the prospectus included in such Shelf Registration Statement (including each preliminary prospectus and any summary prospectus),
in conformity in all material respects with the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder, and such other documents, as such Electing Holder, agent, if any,
and underwriter, if any, may reasonably request in order to facilitate the offering and disposition of the Registrable Securities owned by such Electing Holder, offered or sold by such agent or underwritten by such underwriter and to permit such
Electing Holder, agent and underwriter to satisfy the prospectus delivery requirements of the Securities Act; and the Company hereby consents to the use of such prospectus (including such preliminary prospectus) and any amendment or supplement
thereto by each such Electing Holder and by any such agent and underwriter, in each case in the form most recently provided to such person by the Company, in connection with the offering and sale of the Registrable Securities covered by such
prospectus (including such preliminary prospectus) or any supplement or amendment thereto; 
 (xii) use reasonable efforts to
(A) register or qualify the Registrable Securities of such series to be included in such Shelf Registration Statement under such securities laws or blue sky laws of such jurisdictions as any Electing Holder and each placement or sales agent, if
any, therefor and underwriter, if any, thereof shall reasonably request, (B) keep such registrations or qualifications in effect and comply 

  

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with such laws so as to permit the continuance of offers, sales and dealings therein in such jurisdictions during the period such Shelf Registration is
required to remain effective under Section 2(b) above and for so long as may be necessary to enable any such Electing Holder, agent or underwriter to complete its distribution of Securities pursuant to such Shelf Registration Statement and
(C) take any and all other actions as may be reasonably necessary or advisable to enable each such Electing Holder, agent, if any, and underwriter, if any, to consummate the disposition in such jurisdictions of such Registrable Securities;
provided, however, that neither the Company nor the Support Provider shall be required for any such purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it would not otherwise be required to qualify but for the
requirements of this Section 3(d)(xii), (2) consent to general service of process in any such jurisdiction or (3) make any changes to its certificate of incorporation or by laws or any agreement between it and its stockholders;

 (xiii) use its reasonable efforts to obtain the consent or approval of each governmental agency or authority, whether
federal, state or local, which may be required to effect such Shelf Registration or the offering or sale in connection therewith or to enable the selling holder or holders to offer, or to consummate the disposition of, their Registrable Securities
of such series; 
 (xiv) unless any Registrable Securities shall be in book-entry only form, cooperate with the Electing
Holders and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold, which certificates, if so required by any securities exchange upon which any Registrable
Securities are listed, shall be penned, lithographed or engraved, or produced by any combination of such methods, on steel engraved borders, and which certificates shall not bear any restrictive legends; and, in the case of an underwritten offering,
enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least two business days prior to any sale of such Registrable Securities; 
 (xv) provide a CUSIP number for all Registrable Securities, not later than the applicable Effective Time; 
 (xvi) enter into one or more underwriting agreements, agency agreements, “best efforts” underwriting agreements or similar
agreements, as appropriate, including customary provisions relating to indemnification and contribution, and take such other actions in connection therewith as any Electing Holders aggregating at least 50% in aggregate principal amount of the
Registrable Securities of the relevant series at the time outstanding shall request in order to expedite or facilitate the disposition of such Registrable Securities; 
 (xvii) whether or not an agreement of the type referred to in Section 3(d)(xvi) hereof is entered into and whether or not any portion
of the offering contemplated by such Shelf Registration is an underwritten offering or is made through a placement or sales agent or any other entity, (A) make such representations and warranties to the Electing Holders and the placement or
sales agent, if any, therefor and the underwriters, if any, thereof in form, substance and scope as are customarily made in connection with an offering of debt securities pursuant to any appropriate agreement or to a registration statement filed on
the form applicable to such Shelf 

  

 13 








 
Registration; (B) obtain an opinion of counsel to the Company in customary form and covering such matters, of the type customarily covered by such an
opinion, as the managing underwriters, if any, or as any Electing Holders of at least 50% in aggregate principal amount of the Registrable Securities of the relevant series at the time outstanding may reasonably request, addressed to such Electing
Holder or Electing Holders and the placement or sales agent, if any, therefor and the underwriters, if any, thereof and dated the effective date of such Shelf Registration Statement (and if such Shelf Registration Statement contemplates an
underwritten offering of a part or all of the Registrable Securities, dated the date of the closing under the underwriting agreement relating thereto) (it being agreed that the matters to be covered by such opinion shall include those matters
customarily delivered in a typical transaction, including a customary “10b-5” statement); (C) obtain a “cold comfort” letter or letters from the independent certified public accountants of the Company addressed to the
selling Electing Holders, the placement or sales agent, if any, therefor or the underwriters, if any, thereof, dated (i) the effective date of such Shelf Registration Statement and (ii) the deemed effective date under rule 430B of any
prospectus supplement to the prospectus included in such Shelf Registration Statement or post effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent
to that of the latest such statements included in such prospectus (and, if such Shelf Registration Statement contemplates an underwritten offering pursuant to any prospectus supplement to the prospectus included in such Shelf Registration Statement
or post effective amendment to such Shelf Registration Statement which includes unaudited or audited financial statements as of a date or for a period subsequent to that of the latest such statements included in such prospectus, dated the date of
the closing under the underwriting agreement relating thereto), such letter or letters to be in customary form and covering such matters of the type customarily covered by letters of such type; (D) deliver such documents and certificates,
including officers’ certificates, as may be reasonably requested by any Electing Holders of at least 50% in aggregate principal amount of the Registrable Securities of the relevant series at the time outstanding or the placement or sales agent,
if any, therefor and the managing underwriters, if any, thereof to evidence the accuracy of the representations and warranties made pursuant to clause (A) above or those contained in Section 5(a) hereof and the compliance with or
satisfaction of any agreements or conditions contained in the underwriting agreement or other agreement entered into by the Company or the Support Provider; and (E) undertake such obligations relating to expense reimbursement, indemnification
and contribution as are provided in Section 6 hereof; 
 (xviii) notify in writing each holder of Registrable Securities
of any proposal by the Company to amend or waive any provision of this Exchange and Registration Rights Agreement pursuant to Section 9(h) hereof and of any amendment or waiver effected pursuant thereto, each of which notices shall contain the
text of the amendment or waiver proposed or effected, as the case may be; 
 (xix) in the event that any broker dealer
registered under the Exchange Act shall underwrite any Registrable Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the
“Conduct Rules) of the National Association of Securities Dealers, Inc. (“NASD”) or any successor thereto, as amended from time to time) thereof, whether as a holder of such Registrable Securities or as an 

  

 14 








 
underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, assist such broker dealer in complying with the requirements
of such Conduct Rules, including by (A) if such Conduct Rules shall so require, engaging a “qualified independent underwriter” (as defined in such Conduct Rules) to participate in the preparation of the Shelf Registration Statement
relating to such Registrable Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Shelf Registration Statement is an underwritten offering or is made through a placement
or sales agent, to recommend the yield of such Registrable Securities, (B) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 6 hereof (or to such other
customary extent as may be requested by such underwriter), and (C) providing such information to such broker dealer as may be required in order for such broker dealer to comply with the requirements of the Conduct Rules; and 
 (xx) comply in all material respects with all applicable rules and regulations of the Commission, and make generally available to its
securityholders as soon as practicable but in any event not later than eighteen months after the effective date of such Shelf Registration Statement, an earning statement of the Company and its subsidiaries complying with Section 11(a) of the
Securities Act (including, at the option of the Company, Rule 158 thereunder). 
 (e) In the event that the Company would
be required, pursuant to Section 3(d)(viii)(F) above, to notify the Electing Holders, the placement or sales agent, if any, therefor and the managing underwriters, if any, thereof, the Company shall without delay prepare and furnish to each of
the Electing Holders, to each placement or sales agent, if any, and to each such underwriter, if any, a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to purchasers of such Registrable
Securities, such prospectus shall conform in all material respects to the applicable requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and shall not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. Each Electing Holder agrees that upon receipt of any notice
from the Company pursuant to Section 3(d)(viii)(F) hereof, such Electing Holder shall forthwith discontinue the disposition of such Registrable Securities pursuant to the Shelf Registration Statement applicable to such Registrable Securities
until such Electing Holder shall have received copies of such amended or supplemented prospectus, and if so directed by the Company, such Electing Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent
file copies, then in such Electing Holder’s possession of the prospectus covering such Registrable Securities at the time of receipt of such notice. 
 (f) In the event of a Shelf Registration, in addition to the information required to be provided by each Electing Holder in its Notice Questionnaire, the Company may require such Electing Holder to furnish to the
Company such additional information regarding such Electing Holder and such Electing Holder’s intended method of distribution of such Registrable Securities as may be required in order to comply with the Securities Act. Each such Electing
Holder agrees to notify the Company as promptly as practicable of any inaccuracy or change in information previously furnished by such Electing Holder to the Company or of the occurrence of any event in either case as a result of which any 

  

 15 








 
prospectus relating to such Shelf Registration contains or would contain an untrue statement of a material fact regarding such Electing Holder or such
Electing Holder’s intended method of disposition of such Registrable Securities or omits to state any material fact regarding such Electing Holder or such Electing Holder’s intended method of disposition of such Registrable Securities
required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly to furnish to the Company any additional information required to correct and update any previously
furnished information or required so that such prospectus shall not contain, with respect to such Electing Holder or the disposition of such Registrable Securities, an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing. 
 (g) Until the expiration of two years after the Closing Date, the Company will not, and will not permit any of its “affiliates” (as defined in Rule 144) to, resell any of the Securities that have been reacquired by any of
them except pursuant to an effective registration statement under the Securities Act. 
 4. Registration Expenses. 
 The Company agrees to bear and to pay or cause to be paid promptly all expenses incident to the Company’s performance of or compliance with this
Exchange and Registration Rights Agreement, including (a) all Commission and any NASD registration, filing and review fees and expenses including fees and disbursements of counsel for the placement or sales agent or underwriters in connection
with such registration, filing and review, (b) all fees and expenses in connection with the qualification of the Securities for offering and sale under the State securities and blue sky laws referred to in Section 3(d)(xii) hereof and
determination of their eligibility for investment under the laws of such jurisdictions as any managing underwriters or the Electing Holders may reasonably designate, including any reasonable fees and disbursements of one counsel for the Electing
Holders (which counsel shall be selected by the Electing Holders of at least a majority in aggregate principal amount of the Registrable Securities of the relevant series held by the Electing Holders and be reasonably satisfactory to the Company)
and the underwriters in connection with such qualification and determination, (c) all expenses relating to the preparation, printing, production, distribution and reproduction of each registration statement required to be filed hereunder, each
prospectus included therein or prepared for distribution pursuant hereto, each amendment or supplement to the foregoing, the expenses of preparing the Securities for delivery and the expenses of printing or producing any underwriting agreements,
agreements among underwriters, selling agreements and blue sky or legal investment memoranda and all other documents in connection with the offering, sale or delivery of Securities to be disposed of (including certificates representing the
Securities), (d) messenger, telephone and delivery expenses of the Company relating to the offering, sale or delivery of Securities and the preparation of documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, any agent of the Trustee and any counsel for the Trustee and of any collateral agent or custodian, (f) internal expenses (including all salaries and expenses of the Company’s officers and employees performing legal or
accounting duties), (g) fees, disbursements and expenses of counsel and independent certified public accountants of the Company (including the expenses of any opinions or “cold comfort” letters required by or incident to such
performance and compliance), (h) fees, disbursements and expenses of any “qualified independent underwriter” engaged pursuant to Section 3(d)(xix) hereof, (i) reasonable fees, disbursements and expenses of one counsel for
the Electing Holders retained in connection with a Shelf Registration, as selected by the Electing Holders of at least a majority in 

  

 16 








 
aggregate principal amount of the Registrable Securities of the relevant series held by Electing Holders (which counsel shall be reasonably satisfactory to
the Company), (j) any fees charged by securities rating services for rating the Securities, and (k) fees, expenses and disbursements of any other persons, including special experts, retained by the Company in connection with such
registration (collectively, the “Registration Expenses”). To the extent that any Registration Expenses are incurred, assumed or paid by any holder of Registrable Securities or any placement or sales agent therefor or underwriter thereof,
the Company shall reimburse such person for the full amount of the Registration Expenses so incurred, assumed or paid promptly after receipt of a request therefor. Notwithstanding the foregoing, the holders of the Registrable Securities being
registered shall pay all agency fees and commissions and underwriting discounts and commissions attributable to the sale of such Registrable Securities and the fees and disbursements of any counsel or other advisors or experts retained by such
holders (severally or jointly), other than the counsel and experts specifically referred to above. 
 5. Representations and Warranties.

 The Company represents and warrants to, and agrees with, each Purchaser and each of the holders from time to time of Registrable
Securities that: 
 (a) Each registration statement covering Registrable Securities and each prospectus (including any
preliminary prospectus) contained therein or furnished pursuant to Section 3(d) or Section 3(c) hereof and any further amendments or supplements to any such registration statement or prospectus, when it becomes effective or is filed with
the Commission, as the case may be, and, in the case of an underwritten offering of Registrable Securities, at the time of the closing under the underwriting agreement relating thereto, will conform in all material respects to the requirements of
the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; and at all times subsequent to the Effective Time when a prospectus would be required to be delivered under the Securities Act, other than from (i) such time as a notice has been given to holders of
Registrable Securities pursuant to Section 3(d)(viii)(F) or Section 3(c)(iii)(F) hereof until (ii) such time as the Company furnishes an amended or supplemented prospectus pursuant to Section 3(e) or Section 3(c)(iv) hereof,
each such registration statement, and each prospectus (including any summary prospectus) contained therein or furnished pursuant to Section 3(d) or Section 3(c) hereof, as then amended or supplemented, will conform in all material respects
to the requirements of the Securities Act and the Trust Indenture Act and the rules and regulations of the Commission thereunder and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the circumstances then existing; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon
and in conformity with information furnished in writing to the Company by a holder of Registrable Securities expressly for use therein. 
 (b) Any documents incorporated by reference in any prospectus referred to in Section 5(a) hereof, when they become or became effective or are or were filed with the Commission, as the case may be, will conform or
conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and none of such documents will contain or contained an untrue statement of a material fact or will 

  

 17 








 
omit or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however,
that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to the Company by a holder of Registrable Securities expressly for use therein.

 (c) The compliance by the Company with all of the provisions of this Exchange and Registration Rights Agreement and the
consummation of the transactions herein contemplated will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Company or any subsidiary of the Company is a party or by which the Company or any subsidiary of the Company is bound or to which any of the property or assets of the Company or any subsidiary of the Company is subject, nor
will such action result in any violation of the provisions of the certificate of incorporation, as amended, or the by-laws of the Company or the Support Provider or any statute or any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Company or any subsidiary of the Company or any of their properties, except for any conflict, breach or violation that would not, individually or in the aggregate, have a material adverse effect on the condition
(financial or otherwise), stockholders’ equity, prospects, properties or results of operations of the Company (a “Material Adverse Effect”) or impair the ability of the Company to consummate the transactions contemplated by this
Exchange and Registration Rights Agreement; and no consent, approval, authorization, order, registration or qualification of or with any such court or governmental agency or body is required for the consummation by the Company and the Support
Provider of the transactions contemplated by this Exchange and Registration Rights Agreement, except the registration under the Securities Act of the Securities, qualification of the Indenture under the Trust Indenture Act, such consents, approvals,
authorizations, registrations or qualifications as may be required under State securities or blue sky laws in connection with the offering and distribution of the Securities and such consents, approvals, authorizations, orders, registrations or
qualifications, the failure of which to obtain would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or impair the ability of the Company to consummate the transactions contemplated by this Exchange
and Registration Rights Agreement. 
 (d) This Exchange and Registration Rights Agreement has been duly authorized, executed
and delivered by the Company. 
 6. Indemnification. 
 (a) Indemnification by the Company and the Support Provider. The Company and the Support Provider, jointly and severally, will
indemnify and hold harmless each of the holders of Registrable Securities included in an Exchange Registration Statement, each of the Electing Holders of Registrable Securities included in a Shelf Registration Statement and each person who
participates as a placement or sales agent or as an underwriter in any offering or sale of such Registrable Securities against any losses, claims, damages or liabilities, joint or several, to which such holder, agent or underwriter may become
subject under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any
Exchange Registration Statement or Shelf Registration Statement, as the case may be, 

  

 18 








 
under which such Registrable Securities were registered under the Securities Act, or any preliminary or final prospectus contained therein or furnished by
the Company to any such holder, Electing Holder, agent or underwriter, or any amendment or supplement thereto, or any Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the
Securities Act or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse such holder, such
Electing Holder, such agent and such underwriter for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that neither
the Company nor the Support Provider shall be liable to any such person in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in such registration statement, or preliminary, final or summary prospectus, or amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by such person expressly for
use therein. 
 (b) Indemnification by the Holders and any Agents and Underwriters. The Company may require, as a
condition to including any Registrable Securities in any registration statement filed pursuant to Section 2(b) hereof and to entering into any underwriting agreement with respect thereto, that the Company shall have received an undertaking
reasonably satisfactory to it from the Electing Holder of such Registrable Securities and from each underwriter named in any such underwriting agreement, severally and not jointly, to (i) indemnify and hold harmless the Company, the Support
Provider, and all other holders of Registrable Securities, against any losses, claims, damages or liabilities to which the Company, the Support Provider or such other holders of Registrable Securities may become subject, under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in such registration statement, or any
preliminary, final or summary prospectus contained therein or furnished by the Company to any such Electing Holder, agent or underwriter, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information furnished to the Company by such Electing Holder or underwriter expressly for use therein, and (ii) reimburse the Company and the Support Provider for any legal or
other expenses reasonably incurred by the Company and the Support Provider in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however, that no such Electing Holder shall be required
to undertake liability to any person under this Section 6(b) for any amounts in excess of the dollar amount of the proceeds to be received by such Electing Holder from the sale of such Electing Holder’s Registrable Securities pursuant to
such registration. 
 (c) Notices of Claims, Etc. Promptly after receipt by an indemnified party under subsection
(a) or (b) above of written notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party pursuant to the indemnification provisions of or contemplated by
this Section 6, notify such indemnifying party in writing of the commencement of such action; 

  

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but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party otherwise than under
the indemnification provisions of or contemplated by Section 6(a) or 6(b) hereof. In case any such action shall be brought against any indemnified party and it shall notify an indemnifying party of the commencement thereof, such indemnifying
party shall be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, such indemnifying party
shall not be liable to such indemnified party for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified party, in connection with the defense thereof other than reasonable costs of
investigation. In no event shall an indemnifying party be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or
separate but similar actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the written consent of the indemnified party, effect the settlement or compromise of, or consent
to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified party is an actual or potential party to such action
or claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of
fault, culpability or a failure to act by or on behalf of any indemnified party. No indemnified party shall, without the written consent of the indemnifying party (such consent not to be unreasonably withheld), effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder. 
 (d) Contribution. If for any reason the indemnification provisions contemplated by Section 6(a) or Section 6(b) are
unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party in
connection with the statements or omissions which resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by such
indemnifying party or by such indemnified party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The parties hereto agree that it would not be just and
equitable if contributions pursuant to this Section 6(d) were determined by pro rata allocation (even if the holders or any agents or underwriters or all of them were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this Section 6(d). The amount paid or payable by an indemnified party as a result of the 

  

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losses, claims, damages, or liabilities (or actions in respect thereof) referred to above shall be deemed to include any legal or other fees or expenses
reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no holder shall be required to contribute any amount in excess of the
amount by which the dollar amount of the proceeds received by such holder from the sale of any Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) exceeds the amount of any damages which such holder has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, and no underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages which such underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The holders’ and any underwriters’ obligations in this Section 6(d) to contribute shall be several in proportion to the principal amount of Registrable Securities registered or underwritten, as the case may be, by
them and not joint. 
 (e) The obligations of the Company and the Support Provider under this Section 6 shall be in
addition to any liability which the Company or the Support Provider may otherwise have and shall extend, upon the same terms and conditions, to each officer, director and partner of each holder, agent and underwriter and each person, if any, who
controls any holder, agent or underwriter within the meaning of the Securities Act; and the obligations of the holders and any agents or underwriters contemplated by this Section 6 shall be in addition to any liability which the respective
holder, agent or underwriter may otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company or the Support Provider and to each person, if any, who controls the Company within the meaning of the
Securities Act. 
 7. Underwritten Offerings. 
 (a) Selection of Underwriters. If any of the Registrable Securities covered by a Shelf Registration are to be sold pursuant to an
underwritten offering, the managing underwriter or underwriters thereof shall be designated by Electing Holders holding at least a majority in aggregate principal amount of the Registrable Securities to be included in such offering, provided that
such designated managing underwriter or underwriters is or are reasonably acceptable to the Company. 
 (b) Participation
by Holders. Each holder of Registrable Securities hereby agrees with each other such holder that no such holder may participate in any underwritten offering hereunder unless such holder (i) agrees to sell such holder’s Registrable
Securities on the basis provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting arrangements. 
  

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 8. Rule 144. 
 The Company covenants to the holders of Registrable Securities that to the extent it shall be required to do so under the Exchange Act, the Company shall timely file the reports required to be filed by it under the
Exchange Act or the Securities Act (including the reports under Section 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the Commission under the Securities Act) and the rules and regulations
adopted by the Commission thereunder, and shall take such further action as any holder of Registrable Securities may reasonably request, all to the extent required from time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption provided by Rule 144 under the Securities Act, as such Rule may be amended from time to time, or any similar or successor rule or regulation hereafter adopted by the
Commission. Upon the request of any holder of Registrable Securities in connection with that holder’s sale pursuant to Rule 144, the Company shall deliver to such holder a written statement as to whether it has complied with such
requirements. 
 9. Miscellaneous. 
 (a) No Inconsistent Agreements. The Company represents, warrants, covenants and agrees that it has not granted, and shall not grant, registration rights with respect to Registrable Securities or any other
securities which would be inconsistent with the terms contained in this Exchange and Registration Rights Agreement. 
 (b)
Specific Performance. The parties hereto acknowledge that there would be no adequate remedy at law if the Company fails to perform any of its obligations hereunder and that the Purchasers and the holders from time to time of the Registrable
Securities may be irreparably harmed by any such failure, and accordingly agree that the Purchasers and such holders, in addition to any other remedy to which they may be entitled at law or in equity, shall be entitled to compel specific performance
of the obligations of the Company under this Exchange and Registration Rights Agreement in accordance with the terms and conditions of this Exchange and Registration Rights Agreement, in any court of the United States or any State thereof having
jurisdiction. 
 (c) Notices. All notices, requests, claims, demands, waivers and other communications hereunder shall
be in writing and shall be deemed to have been duly given when delivered by hand, if delivered personally or by courier, or three days after being deposited in the mail (registered or certified mail, postage prepaid, return receipt requested) as
follows: If to the Company, to it at 1025 Laurel Oak Road, Voorhees, NJ 08043, facsimile (856) 346-8360; Attention: General Counsel, and if to a holder, to the address of such holder set forth in the security register or other records of the
Company, or to such other address as the Company or any such holder may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 (d) Parties in Interest. All the terms and provisions of this Exchange and Registration Rights Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the parties hereto and the holders from time to time of the Registrable Securities and the respective successors and assigns of the parties hereto and such holders. In the event that any
transferee of any holder of Registrable Securities shall acquire Registrable Securities, in any manner, whether by gift, bequest, purchase, operation of law or otherwise, such transferee shall, without any further writing or action 

  

 22 








 
of any kind, be deemed a beneficiary hereof for all purposes and such Registrable Securities shall be held subject to all of the terms of this Exchange and
Registration Rights Agreement, and by taking and holding such Registrable Securities such transferee shall be entitled to receive the benefits of, and be conclusively deemed to have agreed to be bound by all of the applicable terms and provisions of
this Exchange and Registration Rights Agreement. If the Company shall so request, any such successor, assign or transferee shall agree in writing to acquire and hold the Registrable Securities subject to all of the applicable terms hereof.

 (e) Survival. The respective indemnities, agreements, representations, warranties and each other provision set forth
in this Exchange and Registration Rights Agreement or made pursuant hereto shall remain in full force and effect regardless of any investigation (or statement as to the results thereof) made by or on behalf of any holder of Registrable Securities,
any director, officer or partner of such holder, any agent or underwriter or any director, officer or partner thereof, or any controlling person of any of the foregoing, and shall survive delivery of and payment for the Registrable Securities
pursuant to the Purchase Agreement and the transfer and registration of Registrable Securities by such holder and the consummation of an Exchange Offer. 
 (f) Governing Law. This Exchange and Registration Rights Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
 (g) Headings. The descriptive headings of the several Sections and paragraphs of this Exchange and Registration Rights Agreement
are inserted for convenience only, do not constitute a part of this Exchange and Registration Rights Agreement and shall not affect in any way the meaning or interpretation of this Exchange and Registration Rights Agreement. 
 (h) Entire Agreement; Amendments. This Exchange and Registration Rights Agreement and the other writings referred to herein
(including the Indenture and the forms of Securities) or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter. This Exchange and Registration Rights Agreement
supersedes all prior agreements and understandings between the parties with respect to its subject matter. This Exchange and Registration Rights Agreement may be amended and the observance of any term of this Exchange and Registration Rights
Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument duly executed by the Company and the holders of at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding. Each holder of any Registrable Securities at the time or thereafter outstanding shall be bound by any amendment or waiver effected pursuant to this Section 9(h), whether or not any notice, writing
or marking indicating such amendment or waiver appears on such Registrable Securities or is delivered to such holder. 
 (i)
Inspection. For so long as this Exchange and Registration Rights Agreement shall be in effect, this Exchange and Registration Rights Agreement and a complete list of the names and addresses of all the holders of Registrable Securities shall
be made available for inspection and copying on any business day by any holder of Registrable Securities for proper purposes only (which shall include any purpose related to the rights of the holders of Registrable Securities under the Securities,
the Indenture and this 

  

 23 








 
Agreement) at the offices of the Company at the address thereof set forth in Section 9(c) above and at the office of the Trustee under the Indenture.

 (j) Counterparts. This agreement may be executed by the parties in counterparts, each of which shall be deemed to be
an original, but all such respective counterparts shall together constitute one and the same instrument. 
  

 24 








 If the foregoing is in accordance with your understanding, please sign and return to us one for the
Company, each Support Provider and each of the Representatives plus one for each counsel counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Purchasers, this letter and such acceptance hereof shall constitute a
binding agreement between each of the Purchasers, the Support Provider and the Company. It is understood that your acceptance of this letter on behalf of each of the Purchasers is pursuant to the authority set forth in a form of Agreement among
Purchasers, the form of which shall be submitted to the Company for examination upon request, but without warranty on your part as to the authority of the signers thereof. 
  

			
	Very truly yours,
	
	AMERICAN WATER CAPITAL CORP.
		
	By:	 	 
		 	 Name:
 Title:



  

			
	AMERICAN WATER WORKS COMPANY, INC.
		
	By:	 	 
		 	 Name:
 Title:



  

 25 








 Accepted as of the date hereof: 
 Citigroup Global Markets Inc. 
 Credit Suisse Securities (USA) LLC 
 Goldman, Sachs & Co. 
 Merrill Lynch,
Pierce, Fenner & Smith Incorporated 
  

			
	CITIGROUP GLOBAL MARKETS INC.
		
	By:	 	 
		 	 Name:
 Title:


  

			
	CREDIT SUISSE SECURITIES (USA) LLC
		
	By:	 	 
		 	 Name:
 Title:


  

			
	GOLDMAN, SACHS & CO.
		
	By:	 	 
		 	(Goldman, Sachs & Co.)

  

			
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
		
	By:	 	 
		 	 Name:
 Title:


 On behalf of each of the Purchasers 
  


 26