Document:

Exhibit 10.5.2 MWP Form of Restricted Stock Unit Award Agreement

Amended and Restated 2006 Stock Incentive Plan
Restricted Stock Unit Award Agreement
Effective May 20, 2014
THIS AGREEMENT, effective as of the Date of Grant set forth below (the “Date of Grant”), represents a grant of restricted stock units (“RSUs”) by Mueller Water Products, Inc., a Delaware corporation (the “Company”), to the Participant named below, pursuant to the provisions of the Mueller Water Products, Inc. Amended and Restated 2006 Stock Incentive Plan (the “Plan”).  The Participant has been selected to receive a grant of RSUs pursuant to the Plan, as specified below.
The Plan provides a description of terms and conditions governing the grant of RSUs.  If there is any inconsistency between the terms of this Restricted Stock Unit Award Agreement (this “Agreement”) and the terms of the Plan, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement.  All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.
Participant:  
Date of Grant:  
Number of RSUs Granted:  
Purchase Price:  None
The parties hereto agree as follows:
		
	1.
	Employment with the Company.  Except as may otherwise be provided in Section 2, the RSUs granted hereunder are granted on the condition that (1) the Participant (other than a Participant who is a non-employee director) accept this equity award no later than ninety (90) days following the Date of Grant, after which time this Agreement shall be void and of no further effect, and (2) the Participant remains in Continuous Service from the Date of Grant by the Company through (and including) the vesting date, as set forth in Section 2 (referred to herein as the “Period of Restriction”).

This grant of RSUs shall not confer any right to the Participant (or any other participant) to be granted RSUs or other Awards in the future under the Plan.
		
	2.
	Vesting.

		
	(a)
	Vesting Without Termination Of Continuous Service.  One-third of the RSUs shall vest on each of the first three anniversaries of the Date of Grant (each a “vesting date”), subject to the Participant’s Continuous Service on each such date.

		
	(b)
	No Fractional RSUs.  If, on any vesting date, the vesting schedule would result in the vesting of a fraction of an RSU, such fraction shall be rounded to the nearest whole RSU in a manner acceptable to management or any independent third party administering any terms of the Plan for the Company.

		
	(c)
	Termination of Continuous Service.  In the event of the Participant’s termination of Continuous Service for any reason during the Period of Restriction (other than by reason of the Participant’s death, Disability or Retirement, or after a Change of Control), all RSUs held by the Participant at the time of his or her termination of Continuous Service and still subject to the Period of Restriction shall be forfeited to the Company.

		
	(d)
	Death or Disability.  All RSUs that have not previously vested shall vest upon the Participant’s termination of Continuous Service as a result of death or Disability.

		
	(e)
	Retirement.  In the event that a Participant is Retirement eligible on the Date of Grant or becomes Retirement eligible during the Period of Restriction, the Participant will vest in RSUs that have not previously vested upon his Retirement provided that the Participant has remained in Continuous Service from the Grant Date through at least the one year anniversary of the Grant Date (for Participants who are not non-employee directors) or at least 

to the date of the next regularly scheduled annual stockholders meeting (for Participants who are non-employee directors).  If the Participant terminates Continuous Service before the first anniversary of the Grant Date or the next regularly scheduled annual stockholders meeting, as applicable, all unvested RSUs subject to the grant will be forfeited to the Company.
		
	(f)
	Change of Control.  Notwithstanding anything to the contrary in this Agreement, in the event of a Change of Control of the Company during the Period of Restriction and prior to the Participant’s termination of Continuous Service, the Period of Restriction imposed on the RSUs shall immediately lapse, with all such RSUs becoming vested, subject to applicable federal and state securities laws.  Notwithstanding the foregoing, a transaction or series of transactions in which the Company separates one or more of its existing businesses, whether by sale, spin-off or otherwise, and whether or not any such transaction or series of transactions requires a vote of the stockholders, shall not be considered a “Change of Control.”

		
	3.
	Timing of Payout.

		
	(a)
	No Termination of Continuous Service.  The number of RSUs vesting on each vesting date shall be paid out on the thirtieth (30th) day following such vesting date.

		
	(b)
	Death, Disability or Change of Control.  In the event the Participant terminates Continuous Service by reason of death or Disability, or after a Change of Control, prior to any vesting date, payout of all RSUs shall be made on the thirtieth (30th) day following the date of such termination of Continuous Service; provided, however, that such termination of Continuous Service also constitutes a "separation from service" within the meaning of Section 409A of the Code.

		
	(c)
	Retirement.  In the event the Participant terminates Continuous Service by reason of Retirement and the Participant was in Continuous Service from the Grant Date through at least the first anniversary of the Grant Date, the number of RSUs that would otherwise vest on each vesting date shall be paid out to the Participant on the thirtieth (30th) day following each such vesting date as if the Participant had remained in Continuous Service.  By way of example, (i) if a Participant who received a grant of RSUs (scheduled to vest one-third on each of the first three anniversaries of the grant date) on December 3, 2013 terminates Continuous Service by reason of Retirement on December 4, 2014, then the remaining outstanding RSUs will vest and be paid according to the original vesting schedule on December 3, 2015 and December 3, 2016 and (ii) if this same Participant terminates Continuous Service on December 2, 2014, then none of the RSUs subject to the grant will vest and all will be forfeited to the Company.

		
	4.
	Form of Payout.  Vested RSUs will be paid out solely in the form of shares of Common Stock of the Company or such other security as Common Stock shall be converted into in the future.

		
	5.
	Voting Rights and Dividends.  Until such time as the RSUs are paid out in shares of Company Stock, the Participant shall not have voting rights.  Further, no dividends shall be paid on any RSUs. 

		
	6.
	Restrictions on Transfer.  Unless and until actual shares of stock of the Company are received upon payout, RSUs granted pursuant to this Agreement may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated (a “Transfer”), other than by will or by the laws of descent and distribution, except as provided in the Plan.  If any Transfer, whether voluntary or involuntary, of RSUs is made, or if any attachment, execution, garnishment, or lien shall be issued against or placed upon the RSUs, the Participant’s right to such RSUs shall be immediately forfeited by the Participant to the Company, and this Agreement shall lapse.  

		
	7.
	Recapitalization.  In the event of any change in the capitalization of the Company such as a stock split or corporate transaction such as any merger, consolidation, separation, or otherwise, the number and class of RSUs subject to this Agreement shall be equitably adjusted by the Committee, as set forth in the Plan, to prevent dilution or enlargement of rights. 

		
	8.
	Beneficiary Designation.  The Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under this Agreement is paid in case of his or her death before he or she receives any or all of such benefit.  Each such designation shall revoke all prior designations by the Participant, shall be in a form prescribed by the Company, and shall be effective only when filed by the Participant in writing with the Secretary of the Company during his or her lifetime.  In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to his or her estate.  

		
	9.
	Continuation of Employment.  This Agreement shall not confer upon the Participant any right to continue employment with the Company or its Subsidiaries, nor shall this Agreement interfere in any way with the Company’s or its Subsidiaries’ right to terminate the Participant’s employment at any time.  For purposes of this Agreement, “Termination of Employment” shall mean termination or cessation of the Participant’s employment with the Company and its Subsidiaries for any reason (or no reason), whether the termination of employment is instituted by the Participant or the Company or a Subsidiary, and whether the termination of employment is with or without cause.  

		
	10.
	Noncompetition.  Upon termination other than involuntary termination not for cause, the Participant agrees that, for one year following such termination, he or she will not engage in executive or management services for a company that, within the 12 months prior to the termination, sold products that compete with the products of the Company or its subsidiaries (a “Competitor,” and such products being a “Competitor’s Products”) within 25 miles of any location in the United States where the Company or its subsidiaries had sales of products (the “Restricted Area”) at the time of such termination.  

The Participant acknowledges and agrees that:
		
	(a)
	The Participant is familiar with the businesses of the Company and its Subsidiaries and the commercial and competitive nature of the industry and recognizes that the value of the Company’s business would be injured if the Participant performed Competitive Services for a Competing Business;

		
	(b)
	This covenant not to compete is essential to the continued good will and profitability of the Company; 

		
	(c)
	In the course of employment with the Company or its Subsidiaries, the Participant will become familiar with the trade secrets and other Confidential Information (as defined below) of the Company and its Subsidiaries, affiliates, and other related entities, and that the Participant’s services will be of special, unique, and extraordinary value to the Company; and

		
	(d)
	The Participant’s skills and abilities should enable him or her to seek and obtain similar employment in a business other than a Competing Business, and the Participant possesses other skills that will serve as the basis for employment opportunities that are not prohibited by this covenant not to compete.  Following the Participant’s Termination of Employment with the Company, he or she expects to be able to earn a livelihood without violating the terms of this Agreement.

		
	11.
	Nonsolicitation of Employees.  During the term of the Participant’s employment with the Company or its Subsidiaries and for a period of twelve (12) months following the Participant’s Termination of Employment, the Participant shall not, either on his or her own account or for any person, entity, business or enterprise within the Restricted Area: (a) solicit any employee of the Company or its Subsidiaries with whom the Participant had contact during the two (2) years prior to his or her Termination of Employment to leave his or her employment with the Company or its Subsidiaries; or (b) induce or attempt to induce any such employee to breach any employment agreement with the Company.  

		
	12.
	Nonsolicitation of Customers.  During the term of the Participant’s employment with the Company or its Subsidiaries and for a period of one year following the Participant’s Termination of Employment, the Participant shall not directly or indirectly solicit or attempt to solicit any current customer of the Company or any of its Subsidiaries with which the Participant had Material Contact (as defined below) during the two (2) years prior to his or her Termination of Employment: (a) to cease doing business in whole or in part with or through the Company or any of its Subsidiaries; or (b) to do business with any other person, entity, business or enterprise which performs services competitive to those provided by the Company or any of its Subsidiaries.  This restriction on post-employment conduct shall apply only to solicitation for the purpose of selling or offering products or services that are similar to or which compete with those products or services offered by the Company or its Subsidiaries during the period of the Participant’s employment.  For purposes of this Section, “Material Contact” shall be defined as any communication intended or expected to develop or further a business relationship and customers about which the employee learned confidential information as a result of his or her employment.

		
	13.
	Developments.  The Participant agrees that all inventions, improvements, trade secrets, reports, manuals, computer programs, systems, tapes and other ideas and materials developed or invented by him or her during the period of his or her employment with the Company or its Subsidiaries, either solely or in collaboration with others, which relate to the actual or anticipated business or research of the Company or its Subsidiaries, which result from or are suggested by any work the Participant may do for the Company or its Subsidiaries, or which result from use of the Company’s or its 

Subsidiaries’ premises or the Company’s or its Subsidiaries’ or their customers’ property (collectively, the “Developments”) shall be the sole and exclusive property of the Company and its Subsidiaries.  The Participant hereby assigns to the Company his or her entire right and interest in any Developments and will hereafter execute any documents in connection therewith that the Company may reasonably request.  This Section does not apply to any inventions that the Participant made prior to his or her employment by the Company or its Subsidiaries, or to any inventions that he or she develops entirely on his or her own time without using any of the Company’s equipment, supplies, facilities or the Company’s or its Subsidiaries’ or their customers’ confidential information and which do not relate to the Company’s or its Subsidiaries’ businesses, anticipated research and Developments or the work he or she has performed for the Company or its Subsidiaries.
		
	14.
	Non-Disparagement.  The Participant agrees that neither during his or her employment nor following his or her Termination of Employment and continuing for so long as the Company or any affiliate, successor or assigns thereof carries on the name or like business within the Restricted Area, the Participant shall not, directly or indirectly, for himself or herself or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity or otherwise make any statements that are inflammatory, detrimental, slanderous, or materially negative in any way to the interests of the Company or its Subsidiaries or other affiliated entities.

		
	15.
	Confidentiality and Nondisclosure.

		
	(a)
	The Participant agrees that he or she will not, other than in performance of his or her duties for the Company or its Subsidiaries, disclose or divulge to Third Parties (as defined below) or use or exploit for his or her own benefit or for the benefit of Third Parties any Confidential Information, including trade secrets.  For the purposes of this Agreement, “Confidential Information” shall mean confidential and proprietary information, trade secrets, knowledge or data relating to the Company and its Subsidiaries and their businesses, including but not limited to information disclosed to the Participant, or known by the Participant as a consequence of or through employment with the Company or its Subsidiaries, where such information is not generally known in the trade or industry, and where such information refers or relates in any manner whatsoever to the business activities, processes, services, or products of the Company or its Subsidiaries; business and development plans (whether contemplated, initiated, or completed); mergers and acquisitions; pricing information; business contacts; sources of supply; customer information (including customer lists, customer preferences, and sales history); methods of operation; results of analysis; customer lists (including advertising contacts); business forecasts; financial data; costs; revenues; information maintained in electronic form (such as e-mails, computer files, or information on a cell phone, Blackberry, or other personal data device); and similar information.  Confidential Information shall not include any data or information in the public domain, other than as a result of a breach of this Agreement.  The provisions of this paragraph shall apply to the Participant at any time during his or her employment with the Company or its Subsidiaries and for a period of two (2) years following his or her Termination of Employment or, if the Confidential Information is a trade secret, such longer period of time as may be permitted by controlling trade secret laws.  

		
	(b)
	The Participant acknowledges and agrees that the Confidential Information is necessary for the Company’s ability to compete with its competitors.  The Participant further acknowledges and agrees that the prohibitions against disclosure and use of Confidential Information recited herein are in addition to, and not in lieu of, any rights or remedies that the Company or a Subsidiary may have available pursuant to the laws of the State of Delaware to prevent the disclosure of trade secrets or proprietary information, including but not limited to the Delaware Uniform Trade Secrets Act, 6 Del. Code Ann. §2001, et seq.  The Participant agrees that this non-disclosure obligation may extend longer than two (2) years following his or her Termination of Employment as to any materials or information that constitutes a trade secret under the Delaware Uniform Trade Secrets Act.

		
	(c)
	For purposes of this Agreement, “Third Party” or “Third Parties” shall mean persons, sole proprietorships, firms, partnerships, limited liability partnerships, associations, corporations, limited liability companies, and all other business organizations and entities, excluding the Participant and the Company.  

		
	(d)
	The Participant agrees to take all reasonable precautions to safeguard and prevent disclosure of Confidential Information to unauthorized persons or entities.

		
	16.
	Intellectual Property.  The Participant agrees that he or she has no right to use for the benefit of the Participant or anyone other than the Company or its Subsidiaries, any of the copyrights, trademarks, service marks, patents, and inventions of the Company or its Subsidiaries.

		
	17.
	Injunctive Relief.  The Participant and the Company recognize that breach of the provisions of this Agreement restricting the Participant’s activities would give rise to immediate and irreparable injury to the Company that is inadequately compensable in damages.  In the event of a breach or threatened breach of the restrictions contained in this Agreement regarding noncompetition, nonsolicitation of employees, nonsolicitation of customers, Developments, non-disparagement, confidentiality and nondisclosure of Confidential Information, and intellectual property (collectively, the “Covenants”), the Participant agrees and consents that the Company shall be entitled to injunctive relief, both preliminary and permanent, without bond, in addition to reimbursement from the Participant for all reasonable attorneys’ fees and expenses incurred by the Company in enforcing these provisions, should the Company prevail.  The Participant also agrees not raise the defense that the Company has an adequate remedy at law.  In addition, the Company shall be entitled to any other legal or equitable remedies as may be available under law.  The remedies provided in this Agreement shall be deemed cumulative and the exercise of one shall not preclude the exercise of any other remedy at law or in equity for the same event or any other event. 

		
	18.
	Dispute Resolution; Agreement to Arbitrate.

		
	(a)
	The Participant and the Company agree that final and binding arbitration shall be the exclusive remedy for any controversy, dispute, or claim arising out of or relating to this Agreement.

		
	(b)
	This Section covers all claims and actions of whatever nature, both at law and in equity, including, but not limited to, any claim for breach of contract (including this Agreement), and includes claims against the Participant and claims against the Company and its Subsidiaries and/or any parents, affiliates, owners, officers, directors, employees, agents, general partners or limited partners of the Company, to the extent such claims involve, in any way, this Agreement.  This Section covers all judicial claims that could be brought by either party to this Agreement, but does not cover the filing of charges with government agencies that prohibit waiver of the right to file a charge.  

		
	(c)
	The arbitration proceeding will be administered by a single arbitrator (the “Arbitrator”) in accordance with the Commercial Arbitration Rules of the American Arbitration Association, taking into account the need for speed and confidentiality.  The Arbitrator shall be an attorney or judge with experience in contract litigation and selected pursuant to the applicable rules of the American Arbitration Association.

		
	(d)
	The place and situs of arbitration shall be Wilmington, Delaware (or such other location as may be mutually agreed to by the parties).  The Arbitrator may adopt the Commercial Arbitration Rules of the American Arbitration Association, but shall be entitled to deviate from such rules in the Arbitrator’s sole discretion in the interest of a speedy resolution of any dispute or as the Arbitrator shall deem just.  The parties agree to facilitate the arbitration by (a) making available to each other and to the Arbitrator for inspection and review all documents, books and records as the Arbitrator shall determine to be relevant to the dispute, (b) making individuals under their control available to other parties and the Arbitrator and (c) observing strictly the time periods established by the Arbitrator for the submission of evidence and pleadings.  The Arbitrator shall have the power to render declaratory judgments, as well as to award monetary claims, provided that the Arbitrator shall not have the power to act (i) outside the prescribed scope of this Agreement, or (ii) without providing an opportunity to each party to be represented before the Arbitrator.  

		
	(e)
	The Arbitrator’s award shall be in writing.  The arbitrator shall allocate the costs and expenses of the proceedings between the parties and shall award interest as the Arbitrator deems appropriate.  The arbitration judgment shall be final and binding on the parties.  Judgment on the Arbitrator’s award may be entered in any court having jurisdiction.

		
	(f)
	The Participant and the Company agree and understand that by executing this Agreement and agreeing to this Arbitration provision, they are giving up their rights to trial by jury for any dispute related to this Agreement.  

______  (the Participant’s initials)
______  (the Company Representative’s initials)

		
	19.
	Clawback. 

		
	(a)
	In the event of a breach of this Agreement by the Participant or a material breach of Company policy or laws or regulations that could result in a termination for cause (whether or not the Participant is terminated), then the RSUs granted hereby shall be void and of no effect, unless the Committee determines otherwise.

		
	(b)
	In the event of financial impropriety by the Participant that results in a restatement of the financial statements of the Company for any applicable period (the “Applicable Period”), as determined by the Audit Committee or the Company’s independent registered public accounting firm; then, if the award granted hereby is made during the Applicable Period or within 90 days after the end of such Applicable Period, the number of RSUs granted hereunder shall be reduced by a fraction:

		
	(i)
	The numerator of which is the amount of operating income decline for the Applicable Period caused by such restatement or breach, and

		
	(ii)
	The denominator of which is the amount of operating income previously determined for the Applicable Period, or if the breach does not result in a decrease in the amount of operating income, the fraction shall be 50%. 

If RSUs have already vested under this Agreement, then the reduction contemplated by this Section 19(b) shall be applied first to the remaining RSUs that have not vested, pro rata, and second to the vested shares and the Participant shall repay the Company by forfeiting to the Company a number of excess shares received that would have exceeded the amount granted hereby, to be taken from the most recent vesting of RSUs or, if such shares have been sold, the proceeds received from the sale of such shares that would otherwise have been forfeited.  
As an example of the foregoing, assume the Participant is granted an award of 300 RSUs on December 3, 2013, which vest equally on December 3, 2014, December 3, 2015 and December 3, 2016.  
If the Company discovers a breach or financial impropriety by the Participant on June 30, 2015, which leads to a 50% decrease in operating income for the 2013 fiscal year and which could not result in termination for Cause, then the award granted would be reduced to 150 RSUs, and the reduction would be applied equally to the remaining RSUs, which would mean that the 100 RSUs vesting on December 3, 2015 would be reduced by 75 to 25 RSUs and the 100 remaining RSUs vesting on December 3, 2016 would be reduced by 75 to 25 RSUs. 
If the Company discovers a breach or financial impropriety by the Participant on June 30, 2016, which leads to a 50% decrease in operating income for the 2013 fiscal year and which could not result in termination for Cause, then the award granted would be reduced to 150 RSUs, which would be applied to the remaining RSUs, which would mean that the 100 RSUs vesting on December 3, 2016 would be reduced by 100 RSUs to 0 RSUs and the Participant would forfeit 50 shares to the Company, taken from the most recent vesting on December 3, 2015, or if such shares had been sold, the Participant would pay to the Company the proceeds received from the sale of those 50 shares.  
		
	(c)
	In addition to the foregoing, if the Participant has realized any profits from the sale of other Company’s securities during the 12-month period prior to the discovery of breach or financial impropriety referred to above, the Participant shall reimburse the Company for those profits to the extent required by the Company’s Clawback Policy.

		
	(d)
	The Company shall have the right to offset future compensation, including, at its sole discretion, stock compensation, to recover any amounts that may be recovered by the Company hereunder.

		
	20.
	Miscellaneous.

		
	(a)
	This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan.  The Committee shall have the right to impose such restrictions on any shares acquired pursuant to this Agreement, as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such shares are then listed and/or traded, under any blue sky or state securities laws applicable to such shares.  It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be binding upon the Participant. 

		
	(b)
	The Committee may terminate, amend, or modify the Plan and this Agreement under the terms of and as set forth in the Plan.  

		
	(c)
	The Participant may elect, subject to any procedural rules adopted by the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold and sell shares having an aggregate Fair Market Value on the date the tax is to be determined, equal to the amount required to be withheld, subject to the restrictions imposed by applicable securities laws and Company policies regarding trading in its shares. 

The Company shall have the power and the right to deduct or withhold from the Participant’s compensation, or require him or her to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation), domestic or foreign, required by law to be withheld with respect to any payout to him or her under this Agreement.
		
	(d)
	The Participant agrees to take all steps necessary to comply with all applicable provisions of federal and state securities laws in exercising his or her rights under this Agreement.

		
	(e)
	This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

		
	(f)
	This Agreement and the Plan constitute the entire understanding between the Participant and the Company regarding the RSUs granted hereunder.  This Agreement and the Plan supersede any prior agreements, commitments or negotiations concerning the RSUs granted hereunder.

		
	(g)
	All rights and obligations of the Company under the Plan and this Agreement, shall inure to the benefit of and be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.  

		
	(h)
	To the extent not preempted by the laws of the United States, the laws of the State of Delaware shall be the controlling law in all matters relating to this Agreement without giving effect to principles of conflicts of laws.

		
	(i)
	The Participant acknowledges and agrees that the Covenants and other provisions contained herein are reasonable and valid and do not impose limitations greater than those that are necessary to protect the business interests and Confidential Information of the Company.  The Company and the Participant agree that the invalidity or unenforceability of any one or more of the Covenants, other provisions, or parts thereof of this Agreement shall not affect the validity or enforceability of the other Covenants, provisions, or parts thereof, all of which are inserted conditionally on their being valid in law, and in the event one or more Covenants, provisions, or parts thereof contained herein shall be invalid, this Agreement shall be construed as if such invalid Covenants, provisions, or parts thereof had not been inserted.  The Participant and the Company agree that the Covenants and other provisions contained in this Agreement are severable and divisible, that none of such Covenants or provisions depend on any other Covenant or provision for their enforceability, that each such Covenant and provision constitutes an enforceable obligation between the Company and the Participant, that each such Covenant and provision shall be construed as an agreement independent of any other Covenant or provision of this Agreement, and that the existence of any claim or cause of action by one party to this Agreement against another party to this Agreement, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by any party to this Agreement of any such Covenant or provision.

		
	(j)
	If any of the provisions contained in this Agreement relating to the Covenants or other provisions contained herein, or any part thereof, are determined to be unenforceable because of the length of any period of time, the size of any area, the scope of activities or similar term contained therein, then such period of time, area, scope of activities or similar term shall be considered to be adjusted to a period of time, area, scope of activities or similar term which would cure such invalidity, and such Covenant or provision in its reduced form shall then be enforced to the maximum extent permitted by applicable law.

		
	(k)
	This Agreement is intended to satisfy the requirements of Section 409A of the Code and shall be construed accordingly.  To the extent that any amount or benefit that constitutes nonqualified deferred compensation under Section 409A of the Code, and that is not exempt under Section 409A, is otherwise payable or distributable to him or her on account of separation from service (within the meaning of Section 409A of the Code) while he or she is a specified employee (within the meaning of Section 409A of the Code), such amount or benefit shall be paid or distributed on the later 

of time for payment described in Section 3 of this Agreement and that date which is six (6) months after such separation from service.  
		
	(l)
	The parties agree that the mutual promises and covenants contained in this Agreement constitute good and valuable consideration.  

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of the Date of Grant.
Mueller Water Products, Inc.
By:  _______________________________
Gregory E. Hyland
Chairman, President, and 
Chief Executive Officer
ATTEST:
                                                    
ParticipantExhibit 10.19.2

	
	
	EXECUTION VERSION

SECOND AMENDMENT TO CREDIT AGREEMENT 

This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of November 25, 2014, and is by and among MUELLER WATER PRODUCTS, INC., a Delaware corporation (the “Company”), each of the Subsidiaries of the Company identified as Borrowers on the signature pages hereof (such Subsidiaries, together with the Company, “Borrowers”), the Lenders identified on the signature pages hereof, and BANK OF AMERICA, N.A., a national banking association, as administrative agent for the Lenders (in that capacity, “Administrative Agent”) and as Swing Line Lender and an L/C Issuer.
RECITALS:
WHEREAS, the Lenders, Administrative Agent, and Borrowers entered into a Credit Agreement dated as of August 26, 2010 (as amended, restated, supplemented, or otherwise modified before the date of this Amendment, the “Credit Agreement”); and
WHEREAS, the Lenders, Administrative Agent, and Borrowers desire to amend certain terms and provisions of the Credit Agreement as set forth herein.
NOW, THEREFORE, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Definitions. Defined terms used but not defined in this Amendment are as defined in the Credit Agreement.

2.Amendment to Credit Agreement.  Subject to the satisfaction of the conditions to the Second Amendment Effective Date set forth in Section 4 hereof, Borrowers, Administrative Agent and the Lenders hereby agree as follows:

(a)The following defined terms in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

“Excluded Deposit Account” means any Deposit Account or Securities Account (a) used exclusively for payroll, payroll taxes, employee benefits or similar operational disbursements, (b) that constitutes a trust account or a fiduciary account, (c) maintained in the Ordinary Course of Business containing not more than $200,000 at the end of any Business Day or (d) maintained in the Ordinary Course of Business containing not more than $500,000 for a period of not more than three consecutive Business Days at any time (and not more than $500,000 in the aggregate at the end of any Business Day for all such Excluded Deposit Accounts arising under clauses (c) and (d)).
“Second Lien Obligations” means Indebtedness issued by the Company or any of its Restricted Subsidiaries having terms consistent with, but not limited to, the following: (a) such Indebtedness may be secured by a Lien that is (i) secondary and expressly subordinated to the first priority security interest of the Administrative Agent for the benefit of the Secured Parties in any property constituting Collateral immediately prior to the Second Amendment Effective Date and (ii) first priority with respect to any property of the Company and its Subsidiaries other than property constituting Collateral immediately prior to the Second Amendment Effective Date; (b) the Administrative Agent for the benefit of the Secured Parties shall be granted a Lien on all property (other than property constituting Collateral immediately prior to the Second Amendment Effective Date) securing the Second Lien Obligations, which Lien shall be secondary and expressly subordinated to the first priority security interest of the holders of the Second Lien Obligations; (c) the terms and conditions of such Indebtedness and all Liens described under clause (a) and (b) above shall be subject to an intercreditor agreement 

reasonably acceptable to the Administrative Agent and the Borrowers; and (d) none of the maturity date, any scheduled payment of principal (other than annual scheduled amortization of up to 1.0% of the original principal amount of such Indebtedness) or any obligation to repurchase or prepay such Indebtedness (whether absolute or at the option of the holder (other than as a result of customary mandatory prepayments)) occurs for at least one year following the Revolving Credit Maturity Date; provided that, in connection with the incurrence of such Indebtedness, (i) the Borrowers shall have entered into amendments to the Security Agreement and other Security Instruments reasonably acceptable to the Administrative Agent to reflect the all-assets nature of the Collateral and the Administrative Agent’s Liens (subject to the intercreditor agreement referred to above), (ii) Administrative Agent shall have received on or prior to the date of consummation thereof (or, in the case of clause (C) below, concurrently with any delivery thereof to the holders of the Second Lien Obligations) (A) to the extent then required to be tested, a Compliance Certificate demonstrating compliance (calculated on a pro forma basis in accordance with Sections 1.03(c) and (d), as applicable) with the financial covenant set forth in Section 8.12, (B) fully executed copies of the definitive documentation for the Second Lien Obligations, (C) if applicable, reasonably satisfactory mortgages and mortgage related documents (including, to the extent reasonably requested by the Administrative Agent, appraisals, title insurance, surveys, flood zone certifications and other customary related mortgage documentation), and (D) UCC-3 amendments reflecting the all-assets nature of the Collateral and the modifications to the Security Instruments referred to above and (iii) no Event of Default shall exist immediately prior to or arise as a result of the incurrence of such Indebtedness.
“Transactions” means, individually or collectively as the context may indicate, (a) the incurrence of the Second Lien Obligations, (b) the consummation of the repurchase or prepayment of the Senior Notes and/or Subordinated Notes and (b) the entering into by the Borrowers of the Second Amendment to Credit Agreement on the Second Amendment Effective Date.
(b)The definition of “Availability Reserve in Section 1.01 of the Credit Agreement is hereby amended by inserting after each of the first two instances of the word “Collateral” therein, the words “included in the Borrowing Base”.

(c)The definition of “Borrowing Base Reserve in Section 1.01 of the Credit Agreement is hereby amended by inserting after the first instance of the word “Collateral” therein, the words “included in the Borrowing Base”.

(d)The definition of “Collateral” in Section 1.01 of the Credit Agreement is hereby amended by deleting the word “personal” therefrom.

(e)The definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended by amending and restating clause (j) therein which shall read as follows:

plus (j) any amounts deducted in determining Consolidated Net Income consisting of (i) out-of-pocket costs and expenses in connection with the Transactions of up to $7,000,000 and (ii) make-whole amounts, call premiums and similar amounts paid in connection with the refinancing of the Senior Notes and the Subordinated Notes in an aggregate amount not to exceed $26,000,000;
(f)Each of the following new defined terms are hereby added to Section 1.01 of the Credit Agreement in alphabetical position:

“Second Amendment Effective Date” means the “Second Amendment Effective Date” as defined in that certain Second Amendment to Credit Agreement dated as of November 25, 2014 among Borrowers, Lenders and Administrative Agent.

(g)Section 8.01 of the Credit Agreement is hereby amended by deleting clause (q) thereof in its entirety and  amending and restating clause (r) thereof to read as follows:

(r)    Liens securing Indebtedness permitted by Section 8.03(n);
(h)Section 8.03(n) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(n)    Second Lien Obligations in an aggregate principal amount on the date of incurrence thereof not to exceed $500,000,000 plus the amount of any incremental facility relating thereto, and any Permitted Refinancing Indebtedness of such Second Lien Obligations (to the extent subject to an intercreditor agreement substantially the same as any intercreditor agreement applicable to the Second Lien Obligations it refinances); and
(i)Section 8.11 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

8.11    Prepayment of Indebtedness; Amendment to Material Agreements.
(a)    Prepay, redeem, purchase, repurchase, defease or otherwise satisfy prior to the scheduled maturity thereof any Indebtedness that is either subordinated to the Indebtedness hereunder or has a stated maturity date later than the Revolving Credit Maturity Date, or make any payment in violation of any subordination terms thereof, including in each case pursuant to any change of control, sale of assets, issuance of any equity or otherwise as may be set forth in the terms thereof or available to the Borrowers at its option, except, so long as no Default or Event of Default shall exist prior to or immediately thereafter, prepayments, redemptions, purchases, repurchases, defeasances or other satisfaction (collectively, a "Prepayment") of:
(i)    Indebtedness made with the proceeds of any Permitted Subordinated Debt;
(ii)    Indebtedness made with the proceeds of (A) the Second Lien Obligations and (B) other Indebtedness permitted to be incurred pursuant to Section 8.03 and containing terms and conditions (including terms of subordination, security and maturity) no less favorable in any material respect to the Administrative Agent and the Lenders than the Indebtedness being Prepaid therewith;
(iii)    the Second Lien Obligations in connection with any mandatory prepayments required pursuant to the definitive documentation for the Second Lien Obligations; provided the Borrower Agent shall deliver notice of such Prepayment to the Administrative Agent substantially concurrently with any notice thereof required to be delivered to any holder of the Second Lien Obligations, or if none, substantially concurrently with the making thereof; and
(iv)    any Indebtedness so long as (A) Pro Forma Availability shall be greater than or equal to 15% of the Aggregate Commitments for each day during the 30 day period prior to such Prepayment and immediately after making such Prepayment, (B) if Pro Forma Availability shall not be at least 25% of the Aggregate Commitments for each day during the 30 day period prior to such Prepayment and immediately after giving effect thereto, the Consolidated Fixed Charge Coverage Ratio (calculated on a pro forma basis giving effect to such Prepayment in accordance with Section 1.03(d)) as of the most recently ended Measurement Period shall be at least 1.00 to 1.00 and (C) the Borrower Agent shall have delivered to the 

Administrative Agent, substantially concurrently with the making of such Prepayment, a certificate demonstrating compliance with items (A) and (B) above.
(b)    Amend, modify or change in any manner any term or condition of (i) any Subordinated Note or the Subordinated Notes Indenture or the Senior Notes or the Senior Notes Indenture, (ii) any other Permitted Subordinated Debt Document, (iii) the definitive documentation for the Second Lien Obligations, or (iv) any Indebtedness with a stated maturity date outside the Revolving Credit Maturity Date, in each case so that the terms and conditions thereof are less favorable in any material respect to the Administrative Agent and the Lenders than the terms of such Indebtedness as of the Closing Date or date of incurrence thereof.
3.Representations. To induce Administrative Agent and the Lenders party hereto to enter into this Amendment, each Borrower hereby represents to Administrative Agent and the Lenders as of the date hereof as follows:

(a)that such Borrower is duly authorized to execute and deliver this Amendment and that such Borrower is duly authorized to perform its obligations under the Loan Documents to which it is a party;

(b)that the execution and delivery of this Amendment by such Borrower does not and will not (i) contravene the terms of the Organization Documents of such Borrower; (ii) conflict with or result in any breach or contravention of, or the creation of any Lien under (x) any Contractual Obligation to which such Borrower is a party or (y) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Borrower or its property is subject; or (iii) violate any Law;

(c)that this Amendment is a legal, valid, and binding obligation of such Borrower, enforceable against such Borrower in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Laws relating to or affecting the rights and remedies of creditors or by general equitable principles;

(d)that, as of the Second Amendment Effective Date and after giving effect to this Amendment, the representations and warranties of the Company and each other Borrower contained in Article VI of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that the representations and warranties contained in subsections (a) and (b) of Section 6.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 of the Credit Agreement;

(e)that, as of the Second Amendment Effective Date and after giving effect to this Amendment, each Borrower has complied with and is in compliance with all of the covenants set forth in the Credit Agreement, including those set forth in Article VII and Article VIII of the Credit Agreement; and

(f)that, as of the Second Amendment Effective Date and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing or would result herefrom.

4.Conditions. This Amendment shall become effective on the date that this Amendment shall have been executed and delivered by Administrative Agent, the Required Lenders and Borrowers (such date, the “Second Amendment Effective Date”).

Administrative Agent’s delivery to the Company of a copy of this Amendment executed by all necessary parties described in this Section 4 shall be deemed evidence that the Second Amendment Effective Date has occurred.

5.Miscellaneous.

(a)This Amendment is governed by, and is to be construed in accordance with, the laws of the State of New York.  Each provision of this Amendment is severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any specific provision.

(b)This Amendment binds Administrative Agent, the Lenders, and Borrowers and their respective successors and assigns, and will inure to the benefit of Administrative Agent, the Lenders, and Borrowers and the successors and assigns of Administrative Agent and each Lender.

(c)Each Borrower, by execution of this Amendment, hereby reaffirms, assumes, and binds themselves to all applicable obligations, duties, rights, covenants, terms, and conditions that are contained in the Credit Agreement (as amended hereby) and the other Loan Documents (including the granting of any Liens for the benefit of the Administrative Agent and the Lenders).

(d)This Amendment is a Loan Document.  Each Borrower acknowledges that Administrative Agent’s costs and expenses (including reasonable attorneys’ fees) incurred in connection with this Amendment shall be paid by Borrowers pursuant to Section 11.04 of the Credit Agreement.

(e)The parties may sign this Amendment in several counterparts, each of which will be deemed to be an original but all of which together will constitute one instrument.

(f)Each of the parties to this Amendment agrees that at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Amendment.

(g)Except as expressly set forth herein, the amendments provided herein shall not by implication or otherwise limit, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, nor shall it constitute a waiver of any Event of Default, nor shall it alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Loan Documents.  The amendment provided herein shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to by such amendment.  Except as expressly amended herein, the Credit Agreement and the other Loan Documents shall continue in full force and effect in accordance with the provisions thereof.  As used in the Credit Agreement, the terms “Agreement”, “herein”, “hereinafter”, “hereunder”, “hereto” and words of similar import shall mean, from and after the date hereof, such Credit Agreement as amended hereby.

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
BORROWERS:

MUELLER WATER PRODUCTS, INC.
ANVIL INTERNATIONAL, LLC
ECHOLOGICS, LLC
HENRY PRATT COMPANY, LLC
HYDRO GATE, LLC
J.B. SMITH MFG CO., LLC
JAMES JONES COMPANY, LLC
MILLIKEN VALVE, LLC
MUELLER CO. INTERNATIONAL HOLDINGS, LLC
MUELLER CO. LLC
MUELLER GROUP, LLC
MUELLER INTERNATIONAL, LLC
MUELLER PROPERTY HOLDINGS, LLC
MUELLER SERVICE CALIFORNIA, INC.
MUELLER SERVICE CO., LLC
MUELLER SYSTEMS, LLC
OSP, LLC
U.S. PIPE VALVE & HYDRANT, LLC
		
	By: 
	/s/ Evan L. Hart    

		
	Name: 
	Evan L. Hart

		
	Title: 
	Chief Financial Officer

BANK OF AMERICA, N.A.,
as Administrative Agent

By:    /s/ William J. Wilson                    
Name:    William J. Wilson                    
Title:    Senior Vice President

                    

BANK OF AMERICA, N.A.,
as a Lender, L/C Issuer and Swing Line Lender

By:    /s/ William J. Wilson                    
Name:    William J. Wilson                    
Title:    Senior Vice President
    

                
WELLS FARGO CAPITAL FINANCE, LLC,
as a Lender

By:    /s/ Mark Bradford                    
Name:    Mark Bradford                    
Title:    Duly Authorized Signatory    

JPMORGAN CHASE BANK, N.A.,
as a Lender

By:    /s/ Rashmi Bhatt
Name:    Rashmi Bhatt                    
Title:    Authorized Officer                    

SUNTRUST BANK,
as a Lender

By:    /s/ Sandra M. Salazar
Name:    Sandra M. Salazar
Title:    Vice President                    

GOLDMAN SACHS BANK USA,
as a Lender

By:                        
Name:                        
Title:                        

TD BANK, N.A.,
as a Lender

By:    /s/ Nick Malatestinic                    
Name:    Nick Malatestinic                    
Title:    Market Credit Manager

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