Document:

2010 MANAGEMENT INCENTIVE PLAN

 EXHIBIT 10.20 
 MUELLER WATER PRODUCTS, INC. 
 2010 MANAGEMENT
INCENTIVE PLAN 
 Adopted by the Compensation and Human Resources Committee 
 on December 1, 2009 
 Adopted by the Stockholders on January 28, 2010 
  

	I.	Purpose 

 This Management
Incentive Plan (the “Plan”), is intended to promote the interests of Mueller Water Products, Inc. by offering an incentive opportunity to certain officers, key executives, and other employees. Certain bonus awards under the Plan are
intended to qualify as “performance-based compensation” under Section 162(m) of the Internal Revenue Code of 1986, as amended. 
  

	II.	Definitions 

 As used in
this Plan, the terms below shall have the following meanings ascribed to them: 
  

	 	A.	“Administrator” shall mean the Committee, with respect to the Covered Participants and with respect to all other employees, the Chief Executive Officer
or his designee. 

  

	 	B.	“Base Pay” shall mean base salary as of the beginning day of the Fiscal Year, before taxes, Social Security and other deductions.

  

	 	C.	“Board of Directors” shall mean the Board of Directors of the Company. 

  

	 	D.	“Code” shall mean the Internal Revenue Code of 1986, as amended. 

  

	 	E.	“Committee” shall mean a committee of two or more members consisting solely of members of the Compensation and Human Resources Committee of the Board,
or in the absence of such a Committee, the Board, who qualify as “outside directors” under Section 162(m) of the Code. 

  

	 	F.	“Company” shall mean Mueller Water Products, Inc., including its subsidiaries and affiliates. 

  

	 	G.	“Covered Participant” means a Participant who is a “covered employee,” as defined in Section 162(m) of the Code and the regulations or
other guidance promulgated by the Internal Revenue Service under Section 162(m) of the Code, or any successor statute, and such other key executives as the Committee shall determine. 

  

	 	H.	“Disability” shall mean a permanent disability which would entitle the employee to benefits under the Company’s long-term disability plan.

  

	 	I.	“Fiscal Year” shall mean the Company’s then current fiscal year, which currently commences on October 1 and ends on September 30.

  

	 	J.	“Participant” shall mean any employee who has been selected to participate in the Plan for the Performance Period. 

  

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	 	K.	“Performance-Based Compensation” shall mean compensation that qualifies for the “qualified performance-based compensation exception” under
Section 162(m) of the Code, or any successor provisions. 

  

	 	L.	“Performance Goal” shall mean such goals as are identified as such in Section V of this Plan. 

  

	 	M.	“Performance Period” shall mean the Company’s Fiscal Year, or such shorter period as determined by the Committee. 

  

	III.	Administration 

 The Plan
shall be administered by the Committee, no member of which serving shall be eligible to receive an award under the Plan. The Committee shall have the authority to amend, modify and interpret the Plan and to make all determinations relating to the
Plan as it may deem necessary or advisable for the administration of the Plan. Decisions of the Committee on all matters relating to the Plan shall be binding and conclusive on all parties, including the Company and the Participants. The Chief
Executive Officer may administer the Plan for employees who are not Covered Participants. 
  

	IV.	Participation 

 The
Committee shall determine the Covered Participants eligible to participate in the Plan for each Performance Period. The Chief Executive Officer shall determine the eligibility of other employees in the Plan for each Performance Period. 

 

	V.	Operation of the Plan 

  

	 	A.	Establishment of Performance Goals 

 No later than ninety (90) days after the start of the Fiscal Year (or such shorter period as shall be required by the Code in the event a Performance Period is shorter than a Fiscal Year) the
Administrator shall establish in writing certain performance goals for each Participant. Each Participant will be assigned performance goals that are selected from the performance measures listed below. Performance goals may be based on a
combination of individual performance objectives and/or financial and operational objectives, except that performance goals upon which the payment or vesting of a bonus award to a Covered Participant that is intended to qualify as Performance-Based
Compensation shall be limited to the financial and operational performance goals in V.B. 
 In the event that a
Participant’s position is substantially tied to one or more business segments, subsidiaries or divisions of the Company, then the performance goals may relate, in whole or in part, to the performance of such segments, subsidiaries or divisions
rather than to the Company as a whole. 
  

	 	B.	Financial and Operational Performance Goals 

 Any one or more of the following performance measures may be used by the Administrator as a performance goal for all or part of a bonus award, based on the relative or absolute attainment of specified
levels of one or any combination of the performance measures: 
  

	 	(a)	Net sales or growth in net sales, 

  

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	 	(b)	Earnings, as determined by GAAP or before or after discontinued operations, interest, taxes, or depreciation and/or amortization (“EBITDA”),

  

	 	(c)	Earnings per share (including diluted earnings per share), 

  

	 	(d)	Net income, 

  

	 	(e)	Operating income before or after discontinued operations and/or taxes, 

  

	 	(f)	Cash flow (including free cash flow) or cash position, 

  

	 	(g)	Gross or operating margin, 

  

	 	(h)	Stock price appreciation, 

  

	 	(i)	Market share, 

  

	 	(j)	Return (before or after taking into account taxation or tax rates) on sales, assets, equity, investment or invested capital, 

  

	 	(k)	Cost reductions, 

  

	 	(l)	Improvement of financial ratings, 

  

	 	(m)	Working capital or working capital relative to some other measure (e.g., as a percent of net sales or return on net assets), 

  

	 	(n)	Days of working capital, and 

  

	 	(o)	Total stockholder return. 

 The
selected levels may be absolute in their terms or measured against or in relationship to net sales or other companies comparably, similarly or otherwise situated. Wherever feasible, the Administrator will establish target, threshold (as hereinafter
defined) and maximum objectives for each performance goal. 
  

	 	C.	Individual Performance Goals 

 The Administrator may establish individual performance goals for all Participants. All such goals shall be set with target, minimum (or threshold) and maximum objectives for each performance goal. 
  

	 	D.	General Matters 

 As to
each performance goal, the relevant measurement of performance shall be computed in accordance with generally accepted accounting principles, if applicable, except that at the time the Committee establishes the relevant performance goal, the
Committee may specify that any performance goal shall be adjusted to include or exclude, as applicable, any one or more of 
  

	 	i.	Extraordinary, unusual or non-recurring items, 

  

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	 	ii.	Gains or losses on dispositions or the effect of discontinued operations, or mergers or acquisitions, 

  

	 	iii.	The cumulative effects of changes in accounting principles or changes in laws or regulations affecting GAAP results (including tax laws and regulations),

  

	 	iv.	The writedown of assets, 

  

	 	v.	Charges for reorganization and restructuring, 

  

	 	vi.	Material litigation, claims, judgments or settlements, and 

  

	 	vii.	Cash pension funding in excess of predetermined levels. 

 In the case of a bonus award to a Covered Participant that is intended to qualify as Performance-Based Compensation, a performance goal must be objective, such that a third party having knowledge of the relevant facts could determine
whether the goal is met. All adjustments exercised under this Section V shall be made in a manner that complies with Section 162(m) of the Code and applicable regulations such that an otherwise available exemption of the award under
Section 162(m) of the Code will not be lost. In making any determination under this paragraph, the Committee shall be entitled to rely on the advice of counsel. 
  

	 	E.	Assignment of Bonus Award  

 No later than ninety (90) days after the start of the Fiscal Year (or such shorter period as shall be required by the Code in the event a Performance Period is shorter than a Fiscal Year), the Administrator shall assign in writing each
Participant with a target bonus. The Administrator shall determine the relative percentage weight to be assigned to the achievement of each financial, operational or individual performance goal by the Participant. Each Participant shall then be
notified of his/her respective performance goals and the percentage assigned to each such performance goal. 
  

	 	F.	Means of Earning Bonus  

 If the Participant achieves the target assigned to a performance goal, the Participant will receive the bonus award assigned to the target. If the Participant achieves the lowest assigned target (the “threshold”) assigned to any
performance goal, the Participant will be entitled to the minimum bonus award assigned to the performance goal. For performance less than the target but greater than the threshold, the Participant will receive a bonus award that is proportionately
graded, as determined by the Administrator. If the Participant receives less than the threshold assigned to any performance goal, the Participant will not receive any bonus award under this Plan. 
 If the Participant achieves more than 100% of the target assigned to a performance goal, then the Participant will be eligible to receive an
additional bonus up to a total of 200% of the percentage weight allocated to such bonus goal, up to 200% of a Participant’s target bonus percentage on a graduated or other basis, as determined by the Administrator. 
 Notwithstanding the foregoing, all bonus awards approved by the Committee with respect to Covered Participants will be subject to the
negative discretion of the Committee, or adjustment by the Committee to reflect the relative performance of the Participant against a performance goal. 
  

	 	G.	Maximum Bonus Award  

  

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 Notwithstanding any calculation made above, the maximum amount of any bonus award that a
Participant may be awarded for a Fiscal Year shall be Four Million Dollars ($4,000,000). 
  

	VI.	Determination and Payment of Bonus Award 

 As soon as practicable after the receipt of audited financial statements for the Fiscal Year (or the receipt of the relevant financial information in the event a Performance Period is shorter than a
Fiscal Year), the Administrator shall determine and certify in writing the amount of the bonus awards for each Participant based on the extent to which such Participant has attained the applicable performance goals. 
 With respect to Covered Participants, the Committee may, in its sole discretion, decrease the actual amount of the bonus awarded to a
Covered Participant from the amount calculated, but the Committee may not increase the actual amount. In exercising its discretion, the Committee may take into account the attainment of individual goals, as well as other factors that the Committee
deems appropriate. 
 After the Administrator’s certification, the bonus awards shall be paid to the Participants in cash,
less applicable taxes. 
  

	VII.	Miscellaneous 

  

	 	A.	Time of Payment; Retirement, Death, Disability, Change in Control, or Other Termination 

 Any payments which may be made to a Participant under the terms of this provision shall be made at the same time as payments are made to the
other Participants in accordance with the provisions of Article VI hereof. A Participant shall not be entitled to receive a bonus award unless actively employed by the Company or one of its subsidiaries on the day the bonus award is scheduled
to be paid as provided above. The Administrator may make exceptions to the requirement set forth in the preceding sentence in the case of retirement, death, or disability as determined in its sole discretion at the time of the Participant’s
termination of employment. 
 Additionally, the Committee shall have sole discretion to determine payments up to the
pre-approved target levels for the Performance Period in the event of a change of more than 50% of the ownership or control of the Company, or a change of more than 50% of the directors of the Company in a single year. 
 Payments made hereunder shall be made by the 15th day of the third month following the end of any Performance Period or at a time that is permissible under
Section 409A of the Code, unless determined otherwise by the Committee for any Participant, provided that no such determination shall be made in such a manner as to cause any payment under this Plan to fail to comply with the “short-term
deferred exception” under Section 409A of the Code and the regulations promulgated thereunder. 
  

	 	B.	Tax Withholding 

 The
Company shall deduct from all awards any federal, state, or local taxes required by law to be withheld with respect thereto. 
  

	 	C.	Claim to Awards and Employee Rights 

 No employee or other person shall have any right to be granted an award under the Plan. Neither this Plan nor any action taken hereunder shall be construed as giving any employee any right to be retained
by the Company, nor shall any action taken hereunder be construed as entitling the Company to the services of any Participant for any period of time. All payments shall be made from the general funds of the Company or its applicable subsidiary and
nothing contained in this Plan or any action taken pursuant to its

  

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provisions shall create or be construed to create a trust or fiduciary relationship of any kind between the Company and any Participant, beneficiary, legal representative of other person.

  

	 	D.	Nontransferability 

 A
person’s rights and interests under this Plan, including amounts payable, may not be assigned, pledged, or transferred, except as required by law. 
  

	 	E.	Applicable Law 

 This Plan
shall be construed and governed in accordance with the laws of the State of Delaware. This Plan is not intended to be subject to the Employee Retirement Security Income Act of 1974, as amended. 
  

	 	F.	Stockholder Approval 

 The
Plan is subject to approval by vote of the stockholders of the Company at the next annual or special meeting of stockholders following adoption by the Board or the Committee. Any amendments hereto requiring stockholder approval are subject to
approval by vote of the stockholders of the Company at the next annual or special meeting of stockholders following adoption of the amendment by the Board or the Committee. 
  

	 	G.	Amendment, Modification and Termination 

 Subject to the terms of the Plan, the Committee may at any time and from time to time, alter, amend, suspend, or terminate the Plan in whole or in part; provided that unless the Committee
specifically provides otherwise, any revision or amendment that would cause the Plan to fail to comply with any requirement of applicable law, regulation, or rule if such amendment were not approved by the stockholders of the Company shall not be
effective unless and until stockholder approval is obtained. 
  

	 	H.	Section 409A 

 To the
extent a bonus award would be subject to the requirements of Code Section 409A and the regulations thereunder, the Plan shall be construed and administered so that the bonus award complies with Code Section 409A. 
  

	 	I.	Clawback Policy 

 (a) In addition to any other remedies available to the Company, if the Board or the Committee of the Board determines that any bonus award or other payment made to any person under this program resulted from (1) illegal conduct by that
person or another person acting in concert with such person, (2) a material violation of any Company policy or (3) financial impropriety by such person that results in (a) a restatement of the financial statements of the Company for
any period within the last three years, or (b) a material breach of Company policy or laws or regulations that could result in a termination for cause (whether or not the person’s employment is terminated), then the Company may recover
from such person such portion of the bonus award or other payment as it considers appropriate under the circumstances. The Board has the sole discretion to make any and all determinations under this policy, but such authority may be delegated to the
Committee. 
 (b) The Company shall have the right to offset future compensation to any person – including
at its sole discretion compensation in the form of stock awards or proceeds of the sale of Company securities – to recover any amounts that may be recovered by the Company or any

  

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subsidiary hereunder, provided that such right may be deferred and limited as necessary to comply with Section 409A of the Code. 
  

 72006 SECOND AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN

 EXHIBIT 10.21 
 Mueller Water Products, Inc. 
 Second Amended and Restated 2006 Stock Incentive Plan 

 Notice of Stock Option Grant 
 Unless otherwise defined herein, all capitalized terms in this Notice of Stock Option Grant (“Notice of Grant”) shall have the meanings ascribed to them in the Mueller Water Products, Inc. Second Amended and Restated 2006 Stock
Incentive Plan (the “Plan”). 
 [Participant Name] 
 [Address Line 1] 
 [Address Line 2] 
 The person named above (the “Optionholder”) has been granted an option (the “Option”) to purchase shares of Series A Common Stock of Mueller Water Products, Inc. (the
“Company”), subject to the terms and conditions of the Plan, this Notice of Grant, and the Stock Option Agreement (attached hereto as Exhibit A), as follows: 
  

			
	Date of Grant:	  	
	Exercise Price per Share:	  	$            
	Total Number of Shares Granted:	  	
	Total Exercise Price:	  	$            
	Type of Option (check one):	  	 ̈  Incentive Stock Option    x  Nonstatutory Stock Option
	Term/ Expiration Date:	  	Not later than [insert date that is 10 years from date of grant]

 Payment: 
 By one or a combination of the following items (as described in greater detail in the Stock
Option Agreement and the Plan): 
  

	 	•	 	 By cash or check 

  

	 	•	 	 By a “same day sale” arrangement 

  

	 	•	 	 By delivery of other shares of Common Stock 

 Vesting Schedule: 
 This Option may be exercised, in whole or in
part, in accordance with the following schedule: 
 1/3rd of shares of Common Stock subject to the Option shall vest on each of the first three anniversaries of
the Date of Grant, subject to the Optionholder’s Continuous Service with the Company on such dates. If, on any vesting date, this Vesting Schedule would result in the vesting of a fraction of a share, such fraction shall be rounded to the
nearest whole share in a manner acceptable to management or any independent third party administering any terms of the Plan for the Company. This Option will vest upon the Optionholder’s death, Disability or Retirement. 
 The undersigned Optionholder acknowledges receipt of, and understands and agrees to, this Notice of Grant, the Stock Option Agreement, and
the Plan, both of which are made a part of this document. The Optionholder has reviewed the Plan, the Notice of Grant and the Stock Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing the
Notice of Grant. Optionholder further acknowledges that as of the Date of Grant, this Notice of Grant, the Stock Option Agreement, and the Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of
stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted and delivered to Optionholder, and (ii) the following agreements only: 
  

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 Other Agreements (if
any):                                       
          
 The Optionholder acknowledges that if no other agreements are listed above, no
other agreements on the subject hereof exist. By signing the Notice of Grant, the Optionholder agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors (or any Committee to whom the Board has
delegated administration of the Plan) upon any questions relating to the Plan, the Notice of Grant and the Option Agreement. 
  

					
	OPTIONHOLDER:	 		 	MUELLER WATER PRODUCTS, INC.
			
	  	 		 	/s/ GREGORY E. HYLAND
	(Signature)	 		 	(Signature)
			
	 	 		 	Gregory E. Hyland, Chairman of the Board of Directors,
		 		 	President and Chief Executive Officer
	 	 		 	
	(Date)	 		 	

  

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 EXHIBIT A 
 MUELLER WATER PRODUCTS, INC. 
 SECOND AMENDED AND
RESTATED 2006 STOCK INCENTIVE PLAN 
 STOCK OPTION AGREEMENT 
 1. Grant of Option. The Company hereby grants to the Optionholder named in the Notice of Grant attached to this Agreement (the
“Optionholder”) an option (the “Option”) to purchase the number of shares of Series A Common Stock (“Shares”) of the Company, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice
of Grant (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated by reference into this Stock Option Agreement (the “Option Agreement”), the Option Agreement and the Notice of Grant. In the
event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail. 
 If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code. However, if this
Option is intended to be an Incentive Stock Option, to the extent that the aggregate Fair Market Value of the Common Stock subject to the Option (as determined at the time of grant) exceeds the $100,000 rule of Code Section 422(d), it shall be
treated as a Nonstatutory Stock Option (“NSO”). 
 2. Exercise of Option. 
 (a) Right to Exercise. This Option is exercisable during its term in accordance with the Vesting Schedule set out in
the Notice of Grant and the applicable provisions of the Plan and this Option Agreement. 
 (b) Method of
Exercise. This Option is exercisable by delivery of an exercise notice, in the form attached hereto (the “Exercise Notice”), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is
being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan and the Option Agreement. The Exercise Notice shall be completed by the
Optionholder and delivered to the Company’s Stock Plan Administrator, as designated by the Company from time to time. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. The
Optionholder shall also be required to make adequate provision for all withholding taxes relating to the exercise of the Option as a condition to the exercise of the Option. This Option shall be deemed to be exercised only upon receipt by the
Company of such fully executed Exercise Notice accompanied by the payment of such aggregate Exercise Price and arrangement for the adequate provision for the withholding taxes relating to the exercise. 
 (c) Compliance. No Shares shall be issued pursuant to the exercise of this Option unless such issuance, exercise, and
the method of payment of consideration for such Shares complies with Applicable Law. This Option may not be exercised for a fraction of a share. Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred
to the Optionholder on the date the Option is exercised with respect to such Exercised Shares. Notwithstanding the foregoing, the Company shall not be liable to the Optionholder for damages relating to any delays in issuing the certificates for the
Exercised Shares to the Optionholder, any loss of the certificates, or any mistakes or errors in the issuance f the certificates or in the certificates themselves. 
 3. Method of Payment. Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionholder: 
 (a) cash or check; 
 (b) consideration received by the Company under a “same day sale” program implemented by the Company in connection with the Plan; or 
  

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 (c) by delivery to the Company of other shares of Common Stock of the
Company; provided, however, that if the Exercise Price of Shares acquired pursuant to this Option is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, the Exercise Price shall be paid only by
shares of the Common Stock of the Company that have been held by the Optionholder for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). The Optionholder
may, subject to procedures satisfactory to the Board, satisfy such delivery requirement by presenting proof of beneficial ownership of such Common Stock. 
 4. Period for Exercise. Subject to the provisions of the Plan, the Notice of Grant and this Option Agreement, the Optionholder may exercise this Option as to any vested Shares at any time prior
to the earliest to occur of the following: 
 (a) the Term/Expiration Date set forth in the Notice of
Grant; 
 (b) two (2) years following the date of the Optionholder’s termination of Continuous
Service as a result of death, Disability or Retirement; 
 (c) three (3) months following the date of
the Optionholder’s termination of Continuous Service by the Company without Cause (and other than as a result of death, Disability or Retirement) or by the Optionholder for any reason; and 
 (d) the date of the Optionholder’s termination of Continuous Service by the Company for Cause. 
 5. Non-Transferability of Option. This Option may not be transferred in any manner other than by will or by the laws of descent or
distribution and may be exercised during the lifetime of the Optionholder only by the Optionholder. The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the
Optionholder. 
 6. Notice of Disqualifying Disposition of ISO Shares. If the Optionholder sells or otherwise
disposes of any of the Shares acquired pursuant to an ISO (“ISO Shares”) on or before the later of (i) two years after the grant date, or (ii) one year after the exercise date, the Optionholder shall immediately notify the
Company in writing of such disposition. The Optionholder understands and agrees that he or she may be subject to income tax withholding by the Company on the compensation income recognized from such early disposition of ISO Shares by payment in cash
or out of the current earnings paid to the Optionholder. 
 7. Lock-Up. By exercising the Option, the Optionholder
agrees that the Company (or a representative of the underwriter(s)) may, in connection with the first underwritten registration of the offering of any equity securities of the Company under the Securities Act (and/or any underwritten registration of
any securities of the Company prior to that time), require that the Optionholder not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic
effect as a sale, any shares of Common Stock or other securities of the Company held by the Optionholder, for a period of time specified by the underwriter(s) (not to exceed one hundred eighty (180) days) following the effective date of the
registration statement of the Company filed under the Securities Act. The Optionholder further agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the underwriter(s) that are consistent with the
foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop transfer instructions with respect to Shares of Common Stock until the end of such period. The underwriters of
the Company’s stock are intended third party beneficiaries of this section and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 
 8. Entire Agreement; Governing Law. The Plan and the Notice of Grant are incorporated herein by reference. Except as expressly set
forth in the Notice of Grant, the Plan, the Notice of Grant and this Option Agreement constitute the entire agreement of the parties with respect 

  

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to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionholder with respect to the subject matter hereof. The Company may
amend the terms of the Option; provided that the rights under any Option shall not be materially impaired by any such amendment except by means of a writing signed by the Company and the Optionholder. The Option is governed by the law of the State
of Delaware, without regard to the principles of conflicts of law. 
 9. NO GUARANTEE OF CONTINUED SERVICE. THE
OPTIONHOLDER ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS AN EMPLOYEE, DIRECTOR, OR CONSULTANT AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). THE OPTIONHOLDER FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED
PROMISE OF CONTINUED ENGAGEMENT AS AN EMPLOYEE, DIRECTOR, OR CONSULTANT FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH THE OPTIONHOLDER’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONHOLDER’S
RELATIONSHIP (I) AS AN EMPLOYEE AT ANY TIME, WITH OR WITHOUT CAUSE; (II) AS A CONSULTANT PURSUANT TO THE TERMS OF OPTIONHOLDER’S AGREEMENT WITH THE COMPANY OR AN AFFILIATE; OR (III) AS A DIRECTOR PURSUANT TO THE BYLAWS OF THE COMPANY, AND
ANY APPLICABLE PROVISIONS OF THE CORPORATE LAW OF THE STATE OR OTHER JURISDICTION IN WHICH THE COMPANY IS DOMICILED, AS THE CASE MAY BE. 
  

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 MUELLER WATER PRODUCTS, INC. 
 SECOND AMENDED AND RESTATED 2006 STOCK INCENTIVE PLAN 
 EXERCISE NOTICE 
 Mueller Water Products, Inc. 
 1200 Abernathy Road 
 Atlanta, GA 30328 
 Attention: Stock Plan Administrator 
 1. Exercise of Option. Effective as of today,                          ,
20    , the undersigned (“Purchaser”) hereby elects to purchase                      shares (the
“Shares”) of the Common Stock of Mueller Water Products, Inc. (the “Company”) under and pursuant to the Second Amended and Restated 2006 Stock Incentive Plan (the “Plan”) and the Notice of Stock Option Grant and Stock
Option Agreement dated ___________ ___, 20__ (the “Option Agreement”) with the Grant Number __________. The total purchase price for the Shares shall be $            , as
required by the Option Agreement. 
 2. Delivery of Payment. Purchaser herewith delivers to the Company the full
purchase price for the Shares in the form of: 
  

	 	 ̈	Cash or check in the amount of $            , with any checks made payable to Mueller Water Products,
Inc. 

  

	 	 ̈	Irrevocable instructions to sell shares acquired upon exercise in accordance with the terms of the Company’s “same day sale” program.

  

	 	 ̈	                     shares of Common Stock, with a fair
market value of $            , as to which I am attesting ownership pursuant to the form of Tender of Already-Owned Shares by Attestation of Share Ownership Rather than Physical
Delivery of Shares attached hereto as Attachment 2 (as further described in Attachment 1, Exercise via Attestation). [where are these attachments?] 

 3. Tax Withholding. Purchaser has contacted the Company’s Stock Plan Administrator to confirm that the tax withholding due upon exercise of the Option is
$            . 
 4. Representations of
Purchaser. 
 (a) Purchaser has received, read and understood the Plan, the Notice of Grant and the
Option Agreement and agrees to abide by and be bound by their terms and conditions. 
 (b) Purchaser agrees:
(i) to provide such additional documents as the Company may require pursuant to the terms of the Plan, (ii) to provide for the payment by Purchaser to the Company (in the manner designated by the Company) of the Company’s withholding
obligation, if any, relating to the exercise of this Option, and (iii) if this exercise relates to an ISO, to notify the Company in writing promptly after the date of any disposition of any of the Shares of Common Stock issued upon exercise of
this Option that occurs within two (2) years after the date of grant of the Option or within one (1) year after such Shares of Common Stock are issued upon exercise of the Option. 
 (c) Purchaser hereby makes the following certifications and representations with respect to the Shares, which are being
acquired by the Purchaser for his or her own account (or otherwise in compliance with applicable law) upon exercise of the Option as set forth above: 
 (i) If Purchaser is an officer and/or director of the Company, Purchaser has contacted the Company’s Stock Plan Administrator to determine whether he or she is subject to Section 16 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and if so: 
  

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	 	•	 	 Purchaser has reviewed his or her transactions relative to Section 16 of the Exchange Act (“Section 16”); 

 

	 	•	 	 The Company has informed the Purchaser that the grant of the Option is exempt from Section 16(b) of the Exchange Act either because (i) it
was approved by the Company’s Board of Directors or a committee duly authorized by the Board pursuant to the rules issued under Section 16, or (ii) Purchaser has held the Option for six (6) months or more, and, therefore, this
transaction may not be matched with a non-exempt purchase; and 

  

	 	•	 	 Purchaser understands that the filing of a Form 4 with the U.S. Securities and Exchange Commission may be required because of this transaction.

 (ii) Purchaser understands that if he or she is an officer and/or director of the Company,
Purchaser may be deemed an “affiliate” of the Company and is therefore subject to certain of the conditions set forth in Rule 144 of the Securities Act. 
 (iii) Purchaser further acknowledges that all certificates representing any of the Shares subject to the provisions of the
Option shall have endorsed thereon appropriate legends reflecting the foregoing limitations, as well as any legends reflecting restrictions pursuant to Applicable Law. Purchaser agrees that the Shares are being acquired in accordance with and
subject to the terms, provisions and conditions of his or her option documents and the Plan, to all of which the Purchaser hereby expressly assents. This agreement shall inure to the benefit of and be binding upon the Purchaser’s heirs,
executors, administrators, successors and assigns. 
 (iv) If Purchaser is selling some or all of these Shares in
accordance with the terms of the Company’s “same day sale” program, Purchaser does not have access to, nor is Purchaser aware of, any nonpublic, material information regarding the Company that could or has influenced his or her
decision to sell these Shares. 
 (v) Purchaser hereby agrees to notify the Company upon the transfer or sale or
other disposition of the Shares acquired under any ISO exercise and agrees to hold harmless the Company regarding the reporting of income subject to the disposition of these Shares. 
 (vi) Purchaser further acknowledges that he or she has received a copy of the prospectus prepared by the Company, which
provides information regarding the Company, the Plan and the Shares. 
 (vii) Purchaser represents that he or she
is entitled to exercise the Option with respect to the number of Shares that the Purchaser wishes to purchase hereby. 
 (d) Purchaser agrees that, if required by the Company (or a representative of the underwriters) in connection with the first underwritten registration of the offering of any equity securities of the Company under the Securities Act (or any
underwritten registration of the offering of any securities of the Company prior to that time), or the similar laws of a foreign jurisdiction, Purchaser will not sell, dispose of, transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Shares or other securities of the Company held by Purchaser, for a period of time specified by the underwriter(s) (not to exceed one hundred eighty
(180) days) following the effective date of the registration statement of the Company filed under the Securities Act. Purchaser further agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the
underwriter(s) that are consistent with the foregoing or that are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to the Shares until the end of
such period. 
 4. Rights as Stockholder. Until the issuance (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the 

  

 7 

 
Shares of the Company’s Common Stock subject to the Option, notwithstanding the exercise of the Option. The Shares so acquired shall be issued to the Optionholder as soon as practicable
after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in the Plan. 
 5. Tax Consultation. Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s
purchase or disposition of the Shares. Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company
for any tax advice. 
 6. Entire Agreement; Governing Law. The Plan, the Notice of Grant and Option Agreement are
incorporated herein by reference. This agreement, the Plan, the Notice of Grant and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser. This agreement is governed by
the law of the State of Delaware. 
  

					
	Submitted by:	 		 	Accepted by:
			
	PURCHASER:	 		 	MUELLER WATER PRODUCTS, INC.
			
	  	 		 	  
	(Signature)	 		 	(Signature)
			
	  	 		 	  
	(Print Name)	 		 	(Print Name)
			
	Address:	 		 	 
	  	 		 	 
	  	 		 	 
			
	  	 		 	  
	(Date Executed)	 		 	(Date Received)

  

 8

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