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Exhibit 10.18

SAN
JOSE WATER COMPANY
SPECIAL DEFERRAL ELECTION PLAN
 
PLAN
AMENDMENT

     The
San Jose Water  Company  Special  Deferral  Election  Plan (the  "Plan"),  as
previously  adopted and  approved by the Executive  Compensation  Committee of the Board
of Directors of SJW.  Corp.,  is hereby  amended as  follows: 

	 	1.
Section 3.08 of the Plan is hereby amended in its entirety to read as follows: 

	 	     “3.08 Eligible
Earnings shall mean any direct and current cash  compensation, including
salary, bonuses and other incentive-type compensation,  earned by the Participant for
service as an Employee during the Plan Year. In no  event, however, shall a Participant’s
Eligible Earnings include, for  purposes of the Plan, any item of compensation paid or
distributed to the  Participant after a period of deferral, whether under this Plan or
any other  program of deferred compensation maintained by the Corporation or any
Affiliated  Company. Eligible Earnings shall also include any bonus earned by the
Participant for service as an Employee during the period commencing January 1,  2004 and
continuing through March 31, 2005 and otherwise payable to such  Participant on March 31,
2005 in the absence of a Deferral Election under this  Plan (the “March 2005 Bonus
Payment”).” 

	 	2.
Section 4.01 of the Plan is hereby amended in its entirety to read as follows: 

	 	     “4.01 Eligibility
Rules. The Plan Administrator shall have  absolute discretion in selecting
the Eligible Employees who are to participate  in the Plan for each Plan Year. An
Eligible Employee selected for participation  for the 2005 Plan Year must, in order to
participate in the Plan for that year,  file his or her Deferral Election on or before
the last day of the 2004 calendar  year; provided, however, that any
Deferral Election with  respect to the March 31, 2005 Bonus Payment must be filed on or
before January  31, 2005. For each subsequent Plan Year of participation, the Participant
must  file his or her Deferral Election on or before the last day of the immediately
preceding Plan Year. However, an Eligible Employee who is first selected for
participation in the Plan after the start of a Plan Year must, in order to  participate
in the Plan for that Plan Year, file his or her Deferral Election  within the thirty
(30)-day period following the date he or she is so selected,  with such Deferral Election
to be effective only for Eligible Earnings  attributable to Employee service for the
period commencing with the first day of  the first calendar month coincident with or next
following the filing of such  election and ending with the close of such Plan Year.” 

	 	3.
Section 5.02.A of the Plan is hereby amended in its entirety to read as follows: 

	 	     “A.
The Deferral Election must be exercised by means of a written notice filed with  the Plan
Administrator or its designate. The notice shall be substantially in  the form of the
Deferral Election attached as Exhibit A and must be filed on or  before the last day of
the calendar year immediately preceding the start of the  Plan Year for which the
Eligible Earnings subject to that election are to be  earned; provided, however,
that any Deferral Election with  respect to the March 31, 2005 Bonus Payment must be
filed on or before January  31, 2005. An Eligible Employee who is first selected for
participation in the  Plan after the start of a Plan Year must file his or her Deferral
Election  within the thirty (30)-day period following the date he or she is so selected,
and the Deferral Election shall be effective only for Eligible Earnings  attributable to
Employee service for the period commencing with the first day of  the first calendar
month coincident with or next following the filing of such  election and ending with the
close of such Plan Year.” 

	 	4.
Section 5.03 of the Plan is hereby amended in its entirety to read as follows: 

	 	     “5.03 Deferral
Election Subaccounts. A separate Deferral Election  Subaccount shall be
established for each Plan Year for which the Participant  defers a portion of his or her
Eligible Earnings under the Plan. Such subaccount  shall be credited with the Eligible
Earnings subject to the Deferral Election in  effect for that Plan Year, as and when
those Eligible Earnings would have  otherwise become due and payable to the Participant
in the absence of such  Deferral Election. In addition, a separate Deferral Election
Subaccount shall be  established on March 31, 2005 with respect to the portion of the
March 31, 2005  Bonus Payment which the Participant has elected to defer under the Plan.
The  Participant shall at all times be fully vested in the balance credited to each  of
his or her Deferral Election Subaccounts.” 

	 	5.
Except as  modified  by the  foregoing  amendments,  the terms and  provisions  of the
Plan shall  continue in full force and effect. 

	 	IN
WITNESS WHEREOF, SAN JOSE WATER COMPANY has caused this Plan Amendment to be
executed by its duly-authorized officer on this 30th day of December 2004. 

	 	     SAN
JOSE WATER COMPANY 

	 	     By:
_________________________________________ 

	 	     Title:
_________________________________________EX-10.1

Exhibit 10.1

2005 Salaries; Annual Incentive Compensation Earned in 2004.

On March 1, 2005, the Board of Directors approved the following recommendations of the Executive
Compensation and Employee Benefits Committee regarding compensation of the Company’s executive
officers:

The 2005 salaries for Aqua America’s executive officers of $399,600 for Mr. DeBenedictis,
$238,454 for Mr. Stahl, $210,132 for Mr. Smeltzer, $196,112 for Mr. Riegler and $184,246 for
Mr. Hugus. Such salaries will become effective April 1, 2005.

The annual incentive compensation payouts under Aqua America’s 2004 Annual Cash Incentive
Compensation Plan of $330,000 for Mr. DeBenedictis, $90,872 for Mr. Stahl, $79,186 for Mr.
Smeltzer, $46,648 for Mr. Riegler, and $35,963 for Mr. Hugus.EX-10.2

Exhibit 10.2

Acceleration of Payout of 2003 and 2004 Dividend Equivalent Awards; Grants of 2005 Dividend
Equivalent Awards; Performance Criteria for Acceleration of Payout of Dividend Equivalent Awards.

On March 1, 2005, the Board of Directors approved the following recommendations of the Executive
Compensation and Employee Benefits Committee regarding compensation for the Company’s executive
officers:

The acceleration of the payment period by one year for the previously granted 2003 and 2004
dividend equivalent awards based on Aqua America’s achievement of the performance criteria
established by the Executive Compensation and Employee Benefits Committee in early 2004 with
respect to Aqua America’s earnings target, dividends, total return to shareholders and
customer growth in 2004. As a result of the acceleration relating to the 2003 dividend
equivalent awards, the 2003 dividend equivalents accrued for the executive officers since the
grant of the dividend equivalent awards in 2003 will be paid to the executives in March 2005
in the amount of $66,275 for Mr. DeBenedictis, $21,690 for Mr. Stahl, $15,062 for Mr.
Smeltzer, $12,050 for Mr. Riegler and $12,050 for Mr. Hugus. Payments of the remaining
amounts due under the 2003 dividend equivalent grants will be made to the named executives on
a quarterly basis at the same time and at the same rate as the dividend payments to
shareholders through March 3, 2007 with respect to 68,750 dividend equivalents for Mr.
DeBenedictis, 22,500 dividend equivalents for Mr. Stahl, 15,562 dividend equivalents for Mr.
Smeltzer, 12,500 dividend equivalents for Mr. Riegler and 12,500 dividend equivalents for Mr.
Hugus. As a result of the acceleration relating to the 2004 dividend equivalent awards, the
2004 dividend equivalents accrued for the executive officers since the grant of the dividend
equivalent awards in 2004 would be paid to the executives on March 1, 2007 with respect to
70,000 dividend equivalents for Mr. DeBenedictis, 22,500 dividend equivalents for Mr. Stahl,
15,000 dividend equivalents for Mr. Smeltzer, 10,000 dividend equivalents for Mr. Riegler and
10,000 dividend equivalents for Mr. Hugus; provided, that the payment of the 2004 dividend
equivalents accrued for the executive officers since the grant of the dividend equivalents
could be accelerated by one additional year to March 1, 2006 or delayed by one year to March
1, 2008 depending on whether the Company achieves the performance criteria for 2005
established by the Executive Compensation and Employee Benefits Committee.

The following dividend equivalent awards for 2005: 70,000 dividend equivalents for Mr.
DeBenedictis, 20,000 dividend equivalents for Mr. Stahl, 15,000 dividend equivalents for Mr.
Smeltzer, 10,000 dividend equivalents for Mr. Riegler and 10,000 dividend equivalents for Mr.
Hugus.

The performance criteria for 2005 and for future years, unless otherwise specified by the
Executive Compensation and Employee Benefits Committee, for the acceleration of payouts of
dividend equivalent awards will be based upon Aqua America’s earnings per share, dividends,
total return to shareholders and customer growth.EX-10.3

Exhibit 10.3

Vesting of Restricted Stock Granted in 2004; Grants of Restricted Stock.

On March 1, 2005, the Board of Directors approved the following recommendations of the Executive
Compensation and Employee Benefits Committee regarding compensation for the Company’s executive
officers:

Based on Aqua America’s achievement of the 2004 financial target for operating earnings
established by the Executive Compensation and Employee Benefits Committee on March 19, 2004,
the vesting as of March 19, 2005 of the following number of shares of restricted stock
granted by the Executive Compensation and Employee Benefits Committee: (a) 10,000 shares of
restricted stock granted to Mr. DeBenedictis with a one-year vesting period; and (b) the
following number of shares granted with a vesting period of one-third of the total grant each
year on the anniversary of the date of grant — 2,000 shares for Mr. DeBenedictis, 1,833
shares for Mr. Stahl, 1,333 shares for Mr. Smeltzer and 333 shares for Mr. Riegler.

The granting of the following shares of restricted stock with a vesting period of one-third
of the total grant each year on the anniversary of the date of grant, provided Aqua America
achieves the annual financial target for operating earnings for the immediately preceding
year established by the Executive Compensation and Employee Benefits Committee at the time of
the grant: 13,000 shares for Mr. DeBenedictis, 5,000 shares for Mr. Stahl and 4,000 shares
for Mr. Smeltzer.

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