Document:

employment_agreementv-2.htm

    AMENDED
AND RESTATED

    EMPLOYMENT
AGREEMENT

    

    THIS
AGREEMENT, dated this _____ day of December, 2008, is made by and between The
Connecticut Water Company, a Connecticut corporation having its principal place
of business in Clinton, Connecticut, ("Company"), Connecticut Water Service,
Inc., a Connecticut corporation and holder of all of the outstanding capital
stock of Company ("Parent") and __________, a resident of __________,
("Employee").

    

    

    WITNESSETH:

    

    WHEREAS,
Company and Parent desire to reward Employee for Employee's valuable, dedicated
service to Company and Parent should Employee's service be terminated under
circumstances hereinafter described; and

    

    WHEREAS, Employee, Company and Parent
entered into an amended and restated Employment Agreement dated January 24,
2008; and

    

    WHEREAS, the parties wish to amend the
Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and regulations issued thereunder (collectively the “Code”);
and

    

    WHEREAS,
Employee, Company and Parent are willing to enter into this Amended and Restated
Employment Agreement ("Agreement") on the terms herein set forth;

    

    NOW,
THEREFORE, to assure Company and Parent of Employee's continued dedication and
the availability of Employee's advice and counsel in the event of any such
proposal, to induce Employee to remain in the employ of Company and Parent and
to reward Employee for Employee's valuable dedicated service to Company and
Parent should Employee's service be terminated under circumstances hereinafter
described, and for other good and valuable consideration, the receipt and
adequacy of which each party acknowledges, effective January 1, 2009,
Company, Parent and Employee agree as follows:

    

    1.           Definitions.  For
purposes of this Agreement, the following terms shall have the following
meanings:

    

    (a) "Cause"
shall mean Employee's serious, willful misconduct in respect of Employee's
duties under this Agreement, including conviction for a felony or perpetration
by Employee of a common law fraud upon Company or Parent which has resulted or
is likely to result in material economic damage to Company or Parent, as
determined by a vote of at least seventy-five percent (75%) of all of the
Directors (excluding Employee) of each of Company’s and Parent’s Board of
Directors;

    

    (b) "Change-in-Control"
shall be deemed to have occurred if after the date hereof (i) a public
announcement shall be made or a report on Schedule 13D shall be filed
with

    the
Securities and Exchange Commission pursuant to Section 13(d) of the Securities
Exchange Act of 1934 (the "Act") disclosing that any Person (as defined below),
other than Company or Parent or any employee benefit plan sponsored by Company
or Parent, is the beneficial owner (as the term is defined in Rule 13d-3 under
the Act) directly or indirectly, of twenty percent (20%) or more of the total
voting power represented by Company's or Parent's then outstanding voting common
stock (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in
the case of rights to acquire voting common stock); or (ii) any Person, other
than Company or Parent or any employee benefit plan sponsored by Company or
Parent, shall purchase shares pursuant to a tender offer or exchange offer to
acquire any voting common stock of Company or Parent (or securities convertible
into such voting common stock) for cash, securities or any other consideration,
provided that after consummation of the offer, the Person in question is the
beneficial owner directly or indirectly, of twenty percent (20%) or more of the
total voting power represented by Company's or Parent's then outstanding voting
common stock (all as calculated under clause (i)); or (iii) the stockholders of
Company or Parent shall approve (A) any consolidation or merger of Company or
Parent in which Company or Parent is not the continuing or surviving corporation
(other than a merger of Company or Parent in which holders of the outstanding
capital stock of Company or Parent immediately prior to the merger have the same
proportionate ownership of the outstanding capital stock of the surviving
corporation immediately after the merger as immediately before), or pursuant to
which the outstanding capital stock of Company or Parent would be converted into
cash, securities or other property, or (B) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of Company or Parent; or (iv) there shall have been
a change in the composition of the Board of Directors of Company or Parent at
any time during any consecutive twenty-four (24) month period such that
"continuing directors" cease for any reason to constitute at least a majority of
the Board unless the election, or the nomination for election of each new
Director was approved by a vote of at least two-thirds (2/3) of the Directors
then still in office who were Directors at the beginning of such period; or (v)
the Board of Directors of Company or Parent, by a vote of a majority of all the
Directors (excluding Employee) adopts a resolution to the effect that a
"Change-in-Control" has occurred for purposes of this Agreement.

    

    (c) "Disability"
shall mean the incapacity of Employee by illness or any other cause as
determined under the long-term disability insurance plan of Company in effect at
the time in question, or if no such plan is in effect, then such incapacity of
Employee as prevents Employee from performing the essential functions of
Employee's position with or without reasonable accommodation for a period in
excess of two hundred forty (240) days (whether or not consecutive), or one
hundred eighty (180) days consecutively, as the case may be, during any twelve
(12) month period.

    

    (d) "Effective
Date" shall be the date on which a Change-in-Control occurs.  Anything
in this Agreement to the contrary notwithstanding, if Employee's employment is
terminated prior to the date on which a Change-in-Control occurs, and it is
reasonably demonstrated that such termination (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change-in-Control or
(ii) otherwise arose in connection with or anticipation of a Change-in-Control,
then for all purposes of this Agreement the "Effective Date" shall mean the date
immediately prior to the date of such termination.

    

    (e) "Good
Reason" shall mean the occurrence of any action which (i) removes or changes
Employee's title or reduces Employee's job responsibilities or base salary; (ii)
results in a significant worsening of Employee's work conditions; or (iii) moves
Employee's place of employment to a location that increases Employee's commute
by more than thirty (30) miles over the length of Employee's commute from
Employee's place of principal residence at the time the move is
requested.  For purposes of this subparagraph (e), any good faith
determination by Employee that any such action has occurred shall be
conclusive.

    

    (f) "Person"
shall mean any individual, corporation, partnership, company or other entity,
and shall include a "group" as defined in Section 13(d)(3) of the Securities
Exchange Act of 1934.

    

    
      	
              2.  

            	
              Employment.

            

    

    

    (a) As of the
Effective Date, Company hereby agrees to continue to employ Employee and
Employee agrees to remain in the employ of Company for the Term of this
Agreement upon the terms and conditions hereinafter set
forth.  Subject to the provisions of subparagraph (b) of this
Paragraph 2, and to the provisions of Paragraph 6 below, "Term" shall mean a
continuously renewing period of three (3) years commencing on the Effective
Date.

    

    (b) At any
time during the Term, the Board of Directors of Company and Parent may, by
written notice to Employee, advise Employee of their desire to modify or amend
any of the terms or provisions of this Agreement or to delete or add any terms
or provisions.  Any such notice ("Notice") shall describe the proposed
modifications in reasonable detail.  In the event a Notice shall be
given to Employee, then Company, Parent and Employee agree to discuss the
proposed modification(s) and to attempt in good faith to reach agreement with
respect thereto and to reduce such agreement to writing in an amendment to be
executed by all the parties ("Amendment").  If a Notice is given
hereunder and an Amendment shall not have been executed on or before the
sixtieth (60th) day following the date on which Notice is given, then the Term
shall thereupon be automatically converted to a fixed period ending three (3)
years after the expiration of such sixty (60) days.

    

    3.           Duties of
Employment.

    

    (a) During
the Term, Employee's position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held,
exercised and assigned at any time during the ninety (90)-day period immediately
preceding the Effective Date and Employee's services shall be performed at such
location as Employee shall determine.

    

    (b) During
the Term, Employee will serve Company faithfully, diligently and competently and
will devote full-time to Employee's employment and will hold, in addition to the
offices held on the Effective Date, such other Employee offices of Company or
Parent, or their respective subsidiaries and affiliates, to which Employee may
be elected, appointed or assigned by the Boards of Directors of Company or
Parent from time to time and will discharge

    such
Employee duties in connection therewith.  Nothing in this Agreement
shall preclude Employee, with the prior approval of the Board of Directors of
Company, from devoting reasonable periods of time required for (i) serving as a
director or member of a committee of any organization involving no conflict of
interest with Company or Parent, or (ii) engaging in charitable, religious and
community activities, provided, that such
directorships, memberships or activities do not materially interfere with the
performance of Employee's duties hereunder.

    

    4.           Compensation.  During
the Term, Company shall pay to Employee as compensation for the services to be
rendered by Employee hereunder the following:

    

    (a) A
base salary at a rate equal to the highest base salary paid or payable to
Employee by Company during the twelve (12)-month period immediately preceding
the month in which the Effective Date occurs, or such larger sum as the Company
may from time to time determine in connection with regular periodic performance
reviews pursuant to Company's policies and practices.  Such
compensation shall be payable in accordance with the normal payroll practices of
Company.  Employee shall receive an annual increase in base salary at
each normal pay adjustment date during the Term, but no later than one (1) year
after the date of Employee's last increase and annually thereafter during the
Term, of not less than the percentage increase in the cost-of-living since
Employee's last pay adjustment, as measured by the Consumer Price Index-All
Urban Consumers of the U.S. Bureau of Labor Statistics.

    

    (b) In addition, Company shall pay to
Employee an annual award under the Company’s Performance Stock Program (or other
bonus program in effect at the time the Effective Date occurs) payable in cash
or other form of compensation, for which he would have been eligible in
accordance with the Company's practice or plan in effect at that time for annual
bonuses for said employee for the year preceding the fiscal year in which the
Effective Date occurs.

    

    5. Benefits.  During
the Term, Employee shall be entitled to the following benefits:

    

    (a) Incentive, Savings and
Retirement Plans.  In addition to base salary and bonus payable
as hereinabove provided, Employee shall be entitled to participate during the
Term in all savings and retirement plans, practices, policies and programs
applicable to employees of Company as may be in effect from time to
time.  Such plans, practices, policies and programs, in the aggregate,
shall provide Employee with compensation, benefits and reward opportunities at
least as favorable as the most favorable of such compensation, benefits and
reward opportunities provided by Company for Employee under such plans,
practices, policies and programs as in effect at any time during the ninety
(90)-day period immediately preceding the Effective Date or, if more favorable
to Employee, as provided at any time thereafter with respect to other key
employees of Company or Parent.

    

    (b) Welfare Benefit
Plans.  During the Term, Employee and/or Employee's family, as
the case may be, shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs
applicable to employees of Company (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life,) at least as favorable as the most favorable of such plans,

    practices,
policies and programs in effect at any time during the ninety (90)-day period
immediately preceding the Effective Date or, if more favorable to Employee
and/or Employee's family, as in effect at any time thereafter with respect to
other key employees of Company or Parent.

    

    (c) Expenses.  During
the Term, Employee shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by Employee in accordance with the most favorable
policies, practices and procedures of Company in effect at any time during the
ninety (90)-day period immediately preceding the Effective Date or, if more
favorable to Employee, as in effect at any time thereafter with respect to other
key employees of Company or Parent.

    

    (d) Fringe
Benefits.  During the Term, Employee shall be entitled to
fringe benefits, including use of an automobile and payment of related expenses
or payment of an allowance for automobile related expenses, in accordance with
the most favorable plans, practices, programs and policies of Company in effect
at any time during the ninety (90)-day period immediately preceding the
Effective Date or, if more favorable to Employee, as in effect at any time
thereafter with respect to other key employees of Company or
Parent.

    

    (e) Office and Support
Staff.  During the Term, Employee shall be entitled to an
office or offices of a size and with furnishings and other appointments, and to
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to Employee by Company at any time during the ninety (90)-day
period immediately preceding the Effective Date or, if more favorable to
Employee, as provided at any time thereafter with respect to other key employees
of Company or Parent.

    

    (f) Vacation.  During
the Term, Employee shall be entitled to paid vacation in accordance with the
most favorable plans, policies, programs and practices of Company as in effect
at any time during the ninety (90)-day period immediately preceding the
Effective Date or, if more favorable to Employee, as in effect at any time
thereafter with respect to other key employees of Company or
Parent.

    

    6.           End of Term and Notice of
Termination.

    

    (a)           End of
Term.  The Term shall end upon the occurrence of any of the
following events:

    

     
(i) Termination
of Employee's employment by Company for Cause.

    

    
      	
              (ii)  

            	
              The
      voluntary termination of Employee's employment by Employee other than for
      Good Reason.

            

    

    

     
(iii) The death
of Employee.

    

     
(iv) Employee's
attainment of age sixty-five (65).

     

    
      	
              (v)  

            	
              Full
      compliance by Company with the provisions of Paragraph 7(e) below, if
      Employee's employment shall have been terminated by Company during the
      Term for any reason other than
      Cause, or if Employee's employment shall have been terminated by reason of
      Employee's Disability, or if Employee shall have voluntarily terminated
      Employee's employment during the Term for Good
  Reason.

            

    

    

    (b) Notice of
Termination.  Any termination by Company for Cause or by
Employee for Good Reason or on account of Employee's Disability shall be
communicated by notice to the other party hereto given in accordance with
Section 15 of this Agreement.  For purposes of this Agreement, a
"notice" means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of
Employee's employment under the provision so indicated and (iii) if the date of
termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than fifteen (15)
days after the giving of such notice).

    

    (c) Date of
Termination.  The date of termination means the date of receipt
of the notice of termination or any later date specified therein, as the case
may be; provided, however, that (i) if
Employee's employment is terminated by Company other than for Cause or on
account of Employee's Disability, the date of termination shall be the date on
which Company notifies Employee of such termination and (ii) if Employee's
employment is terminated by reason of death, the date of termination shall be
the date of death of Employee.

    

    (d) Termination of
Employment.  In order for the Employee to be considered to have
terminated employment with the Company, the Employee must have incurred a
separation from service from the Company (and all related companies) within the
meaning of Section 409A of the Code, and regulations promulgated thereunder, and
the term termination of employment and the like as used in this Agreement shall
be construed to mean separation from service as so defined under Section 409A of
the Code.

    

    7.           Payment Upon
Termination.

    

    (a) If
Employee's employment is terminated by Company for Cause, as defined in
Paragraph 1(a), the obligations of Company under this Agreement shall cease and
Employee shall forfeit all right to receive any compensation or other benefits
under this Agreement except only compensation or benefits accrued or earned and
vested (if applicable) by Employee as of the date of termination, including base
salary through the date of termination, benefits payable under the terms of any
qualified or nonqualified retirement plans or deferred compensation plans
maintained by Company, any accrued vacation pay as of the date of termination
not yet paid by Company and any benefits required to be paid by law such as
continued health care coverage pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 ("COBRA") (collectively, the "Accrued
Obligations").

    

    (b) If
Employee shall voluntarily terminate Employee's employment during the Term,
other than for Good Reason, as defined in Paragraph 1(e), the obligations of
Company under this Agreement shall cease and Employee shall forfeit all right to
receive any compensation or other benefits under this Agreement except only the
Accrued Obligations.

    

    (c) In the
event of the death of Employee during the Term, then, in addition to the Accrued
Obligations and any other benefits which may be payable by Company in respect of
the death of Employee, the base salary then payable hereunder shall continue to
be paid at the then current rate for a period of six (6) months after such death
to such beneficiary as shall have been designated in writing by Employee, or if
no effective designation exists, then to the estate of Employee.  Such
payment shall be made on the first (1st) and
fifteenth (15th) of
each month, beginning on the first day of the first month following Employee’s
death.

    

    (d) If
Employee's employment is terminated by reason of Employee's attainment of age
sixty-five (65), the obligations of Company under this Agreement shall cease and
Employee shall forfeit all right to receive any compensation or other benefits
under this Agreement except the Accrued Obligations.

    

    (e) If
Employee's employment is terminated by Company during the Term for any reason
other than for
Cause, or Employee's death, or Employee's attainment of age sixty-five (65), or
if Employee's employment is terminated during the Term by reason of Employee's
Disability, or if Employee shall voluntarily terminate Employee's employment
during the Term for Good Reason, Employee shall be entitled to receive, and
Company shall be obligated to pay and provide Employee, the following
amounts:

    

    (i) An amount
in consideration of the covenants by Executive set forth in Paragraphs 8
and 9 below to be determined by a nationally recognized independent certified
public accounting firm selected and retained by Company to be the reasonable
value of said covenants as of the date of termination of Employee’s employment,
but in no event shall such amount be greater than the aggregate value of the
benefits provided in subparagraphs (e)(ii), (iii), (iv), (v) and (viii)
hereinbelow.  The benefits otherwise payable to Executive pursuant to
said subparagraphs shall be offset by the amount, if any, payable to Executive
in respect of the covenants by Employee set forth in Paragraphs 8 and 9
below.  Said amount paid in consideration of the covenants by
Executive set forth in Paragraphs 8 and 9 below shall be paid in accordance
with subparagraphs (e)(ii), (iii), (iv), (v) and (viii) below, and this
subparagraph (i) shall not alter the time or form of payment of such
amounts.

    

    (ii) An amount
equal to three (3) times the base salary of Employee, at the rate in effect
immediately prior to the date of termination, plus an amount equal to three (3)
times the target percentage of the midpoint of Employee's salary grade under the
Company's Officers Incentive Program for the year in which termination occurs if
the employee is a participant in such plan at the time of the
Change-in-Control.  Such amount so determined shall be divided into
thirty-six (36) equal amounts.  If the Employee is not a “specified
employee” as defined under Section 409A of the Code at the time of termination,
payment of such equal amounts shall be made on the first day of each month,
commencing with the first day of the first

    month
following termination.  If the Employee is a “specified employee” as
that term is defined under Section 409A of the Code on the date of termination,
seven (7) such equal amounts shall be paid to the Employee on the date which is
the first day of the seventh (7th) month
following the date of termination of employment, and the twenty-nine (29)
remaining equal amounts shall be payable on the first day of each month
subsequent to the date of the first payment (one payment per month) until the
payments are completed.  Payments shall be treated as supplemental
wage payments under applicable Treasury Regulations subject to federal tax
withholding at the flat percentage rate applicable thereto.

    

    (iii) An amount
equal to the aggregate amounts that Company would have contributed on behalf of
Employee under Company's qualified defined contribution retirement plan(s), if
any such plan(s) shall be in effect (other than amounts attributable to
Employee's before-tax contributions to such plan(s)) plus estimated earnings
thereon had Employee continued in the employ of Company for the three (3)-year
period commencing on the date of termination and made contributions under said
plan(s) equal to the maximum amount that the Employee could have contributed
under the terms of such plan(s) for the plan year immediately preceding
Employee's termination, to be payable in a lump sum to Employee on the second
anniversary of the Employee’s termination of employment, provided that Employee
shall not have breached said non-competition provisions.

    

    (iv) An amount
equal to the additional Interest Equivalent which would have been earned under
any deferred compensation agreement between Company and Employee, if any such
agreement shall be in effect, had Employee continued in the employ of Company
for the three (3)-year period commencing on the date of termination, received
compensation at least equal to that specified in Paragraph 4 of this Agreement
during such time, and deferred pursuant to said deferred compensation agreement
the amount of compensation specified therein; such amount to be payable in a
lump sum to Employee on the second anniversary of the Employee’s termination of
employment, provided that Employee shall not have breached said non-competition
provisions.

    

    (v) Additional
retirement benefits equal to the additional annual pension benefits that would
have been payable to Employee under Company's qualified defined benefit
retirement plan (the "Plan") and under any nonqualified supplemental Employee
retirement plan covering Employee (the "Supplemental Plan"), if any such Plan or
Supplemental Plan shall be in effect, if Employee had been continued in the
employ of Company for the three (3)-year period commencing on the date of
termination and had received compensation at least equal to that specified in
Paragraph 4(a) of this Agreement during such time and had been fully vested in
the benefits payable under any such Plan and Supplemental Plan.  The
discounted present value of such additional benefits, shall be payable to
Employee in a lump sum, as calculated by the independent actuary for the Plan
using the assumptions specified in the Plan, on the second anniversary of the
Employee’s termination of employment, provided that Employee shall not have
breached said non-competition provisions.

    

    (vi) At the
date of termination of Employee's employment, Employee shall be fully vested in
any form of compensation previously granted to Employee (other than

    benefits
payable under a qualified retirement plan), such as, by way of example only,
restricted stock, stock options, and performance share awards.

    

    (vii) If
Employee's employment is terminated by reason of Employee's Disability, Employee
shall be entitled to receive, in addition to the other benefits provided under
this Paragraph 7(e), disability benefits payable in accordance with any bona
fide disability plan maintained by Company or Parent, to the extent Employee
qualifies for benefits under the terms of such bona fide disability
plan.

    

    (viii) A lump
sum cash payment equal to three (3) times the sum of the average of the annual
contributions, payments, credits or allocations made by the Company on behalf of
the Employee for coverage under all life, health, disability and similar welfare
benefit plans and programs and other perquisites maintained by the Company
during the three (3) calendar year period preceding his termination of
employment.  Such payment shall be made on the first day of the
seventh (7th) month
following the Employee’s termination of employment, if the Employee is a
“specified employee” as defined under Section 409A of the Code on the date of
termination.  If the Employee is not a specified employee on the date
of termination, payment shall be made on the first day of the month following
the Employee’s termination of employment.

    

    (ix) Company
shall reimburse Employee for the amount of any reasonable legal or accounting
fees and expenses incurred by Employee to obtain or enforce any right or benefit
provided to Employee by Company hereunder or as confirmed or acknowledged
hereunder, provided that no such reimbursement shall be made earlier than seven
(7) months following the Employee’s termination, if the Employee is a “specified
employee” as that term is defined under Section 409A of the Code on the date of
termination, and in no event shall any reimbursement be made any later than
December 31 of the calendar year following the year in which the expense is
incurred by the Employee.

    

    (x) Company
shall provide the Employee with reasonable outplacement services from a firm
selected by the Company for a period of one (1) year commencing on the date of
termination, or until Employee accepts other employment, if
earlier.

    

    8. Confidential
Information.  Employee understands that in the course of
Employee's employment by Company, Employee will receive or have access to
confidential information concerning the business or purposes of Company and
Parent, and which Company and Parent desire to protect.  Such
confidential information shall be deemed to include, but not be limited to,
Company's customer lists and information, and employee lists, including, if
known, personnel information and data.  Employee agrees that Employee
will not, at any time during the period ending two (2) years after the date of
termination of Employee's employment, reveal to anyone outside Company or Parent
or use for Employee's own benefit any such information without specific written
authorization by Company or Parent.  Employee further agrees not to
use any such confidential information or trade secrets in competing with Company
or Parent at any time during or in the two (2) year period immediately following
the date of termination of Employee's employment with Company.

     

    9. Covenants by Employee Not to
Compete With Company or Parent.

    

    (a) Upon
the date of termination of Employee's employment with Company for any reason,
Employee covenants and agrees that Employee will not at any time during the
period of two (2) years from and after such date of termination directly or
indirectly in any manner or under any circumstances or conditions whatsoever be
or become interested, as an individual, partner, principal, agent, clerk,
employee, stockholder, officer, director, trustee, or in any other capacity
whatsoever, except as a nominal owner of stock of a public corporation, in any
other business which, at the date of Employee's termination, is a Competitor (as
defined herein), either directly or indirectly, with Company or Parent, or
engage or participate in, directly or indirectly (whether as an officer,
director, employee, partner, consultant, holder of an equity or debt investment,
lender or in any other manner or capacity), or lend Employee's name (or any part
or variant thereof) to, any business which, at the date of Employee's
termination, is a Competitor, either directly or indirectly, with Company or
Parent, or as a result of Employee's engagement or participation would become, a
Competitor, either directly or indirectly, with any aspect of the business of
Company or Parent as it exists at the time of Employee's termination, or solicit
any officer, director, employee or agent of Company or Parent or any subsidiary
or affiliate of Company or Parent to become an officer, director, employee or
agent of Employee, Employee's respective affiliates or anyone
else.  Ownership, in the aggregate, of less than one percent (1 %) of
the outstanding shares of capital stock of any corporation with one or more
classes of its capital stock listed on a national securities exchange or
publicly traded in the over-the-counter market shall not constitute a violation
of the foregoing provision.  For the purposes of this Agreement, a
Competitor is any business which is similar to the business of Company or Parent
or in any way in competition with the business of Company or Parent within any
of the then-existing water utility service areas of Company.

    

    (b) Employee
hereby acknowledges that Employee's services are unique and extraordinary, and
are not readily replaceable, and hereby expressly agrees that Company and
Parent, in enforcing the covenants contained in Paragraphs 8 and 9 herein, in
addition to any other remedies provided for herein or otherwise available at
law, shall be entitled in any court of equity having jurisdiction to an
injunction restraining Employee in the event of a breach, actual or threatened,
of the agreements and covenants contained in these Paragraphs.

    

    (c) The
parties hereto believe that the restrictive covenants of these Paragraphs are
reasonable.  However, if at any time it shall be determined by any
court of competent jurisdiction that these Paragraphs or any portion of them as
written, are unenforceable because the restrictions are unreasonable, the
parties hereto agree that such portions as shall have been determined to be
unreasonably restrictive shall thereupon be deemed so amended as to make such
restrictions reasonable in the determination of such court, and the said
covenants, as so modified, shall be enforceable between the parties to the same
extent as if such amendments had been made prior to the date of any alleged
breach of said covenants.

    

    10. No Obligation to
Mitigate.  So long as Employee shall not be in breach of any
provision of Paragraph 8 or 9, Employee shall have no duty to mitigate damages
in the event of a termination and if Employee voluntarily obtains other
employment (including self-employment), any compensation or profits received or
accrued, directly or indirectly, from such other

    employment
shall not reduce or otherwise affect the obligations of Company and Parent to
make payments hereunder.

    

    11. Resignation.  In
the event that Employee's services hereunder are terminated under any of the
provisions of this Agreement (except by death), Employee agrees that Employee
will deliver Employee's written resignation as an officer of Company or Parent,
or their subsidiaries and affiliates, to the Board of Directors, such
resignation to become effective immediately, or, at the option of the Board of
Directors, on a later date as specified by the Board.

    

    12. Insurance.  Company
shall have the right at its own cost and expense to apply for and to secure in
its own name, or otherwise, life, health or accident insurance or any or all of
them covering Employee, and Employee agrees to submit to the usual and customary
medical examination and otherwise to cooperate with Company in connection with
the procurement of any such insurance, and any claims thereunder.

    

    13. Release.  As
a condition of receiving payments or benefits provided for in this Agreement, at
the request of Company or Parent, Employee shall execute and deliver for the
benefit of Company and Parent, and any subsidiary or affiliate of Company or
Parent, a general release in the form set forth in Attachment A, and such
release shall become effective in accordance with its terms.  The
failure or refusal of Employee to sign such a release or the revocation of such
a release shall cause the termination of any and all obligations of Company and
Parent to make payments or provide benefits hereunder, and the forfeiture of the
right of Employee to receive any such payments and benefits.  Employee
acknowledges that Company and Parent have advised Employee to consult with an
attorney prior to signing this Agreement and that Employee has had an
opportunity to do so.

    

    14. Notices.  All
notices under this Agreement shall be in writing and shall be deemed effective
when delivered in person to Employee or to the Secretary of Company and Parent,
or if mailed, postage prepaid, registered or certified mail, addressed, in the
case of Employee, to Employee's last known address as carried on the personnel
records of Company, and, in the case of Company and Parent, to the corporate
headquarters, attention of the Secretary, or to such other address as the party
to be notified may specify by notice to the other party.

    

    15. Successors and Binding
Agreement.

    

    (a)
Company and Parent will require any successor, whether direct or indirect, by
purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of Company and/or Parent, as the case may be, expressly
to assume and agree to perform this Agreement in the same manner and to the same
extent that Company and Parent are required to perform it.  Failure of
Company and Parent to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this
Agreement.  As used in this Agreement, "Company" and "Parent" shall
include any successor to Company's and/or Parent's, as the case may be, business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     

    (b) This
Agreement shall inure to the benefit of, and be enforceable by, Employee's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.  If Employee dies while any
amount is still payable hereunder, all such amounts shall be paid in accordance
with the terms of this Agreement to Employee's devisee, legatee or other
designee or, if there is no such designee, to Employee's estate.

    

    16. Arbitration.  Any
dispute which may arise between the parties hereto may, if both parties agree,
be submitted to binding arbitration in the State of Connecticut in accordance
with the Rules of the American Arbitration Association; provided that any such
dispute shall first be submitted to Company's Board of Directors in an effort to
resolve such dispute without resort to arbitration.

    

    17. Severability.  If
any of the terms or conditions of this Agreement shall be declared void or
unenforceable by any court or administrative body of competent jurisdiction,
such term or condition shall be deemed severable from the remainder of this
Agreement, and the other terms and conditions of this Agreement shall continue
to be valid and enforceable.

    

    18. Amendment.  This
Agreement may be modified or amended only by an instrument in writing executed
by the parties hereto.

    

    19. Construction.  This
Agreement shall supersede and replace all prior agreements and understandings
between the parties hereto on the subject-matter
covered hereby.  This Agreement shall be governed and construed under
the laws of the State of Connecticut.  Words of the masculine gender
mean and include correlative words of the feminine gender.  Paragraph
headings are for convenience only and shall not be considered a part of the
terms and provisions of the Agreement.

    

    20. Deferred
Compensation.  This Agreement has been prepared with reference
to Section 409A of the Internal Revenue Code and shall be interpreted and
administered in a manner consistent with Section 409A.

    

    21. Assignment
Prohibited.  Benefits hereunder shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment by creditors of the Employee, the
Employee’s beneficiary, or estate, and any attempt to anticipate, alienate,
transfer, assign or attach the same shall be void.  The Employee, the
Employee’s beneficiary or estate shall only have a contractual right to benefits
hereunder and shall have the status of general unsecured creditors.

    

    * * * * *
*

    

    IN
WITNESS WHEREOF, Company and Parent have caused this Agreement to be executed by
an authorized officer, and Employee has hereunto set Employee's
hand.

    

    The Connecticut Water
Company

    

    

    December      ,
2008                                                   By                                                                

              Date

    Connecticut Water Service,
Inc.

    

    

    December      ,
2008                                                   By                                                                

              Date

    

    

    December      ,
2008                                                   

              Date

    

    

    

    ATTACHMENT
A

    RELEASE

    

    We advise
you to consult an attorney before you sign this Release.  You have
until the date which is seven (7) days after the Release is signed and returned
to ________________ ("Company") to change your mind and revoke your
Release.  Your Release shall not become effective or enforceable until
after that date.

    

    In
consideration for the benefits provided under your Employment Agreement dated
________________ with
Company and ________________ ("Parent"), and more specifically enumerated in
Exhibit 1 hereto, by your signature below you agree to accept such benefits and
not to make any claims of any kind against Company, its past and present and
future parent corporations, subsidiaries, divisions, subdivisions, affiliates
and related companies or their successors and assigns, including without
limitation Parent, or any and all past, present and future Directors, officers,
fiduciaries or employees of any of the foregoing (all parties referred to in the
foregoing are hereinafter referred to as the "Releasees") before any agency,
court or other forum, and you agree to release the Releasees from all claims,
known or unknown, arising in any way from any actions taken by the Releasees up
to the date of this Release, including, without limiting the foregoing, any
claim for wrongful discharge or breach of contract or any claims arising under
the Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights
Act of 1964, the Americans with Disabilities Act of 1990, the Employee
Retirement Income Security Act of 1974, Connecticut's Fair Employment Practices
Act or any other federal, state or local statute or regulation and any claim for
attorneys' fees, expenses or costs of litigation.

    

    THE
PRECEDING PARAGRAPH MEANS THAT BY SIGNING THIS RELEASE YOU WILL HAVE WAIVED ANY
RIGHT YOU MAY HAVE TO BRING A LAWSUIT OR MAKE ANY LEGAL CLAIM AGAINST THE
RELEASEES BASED ON ANY ACTIONS TAKEN BY THE RELEASEES UP TO THE DATE OF THIS
RELEASE.

    

    By
signing this Release, you further agree as follows:

    

    1. You have
read this Release carefully and fully understand its terms;

    

    2. You have
had at least twenty-one (21) days to consider the terms of the
Release;

    

    3. You have
seven (7) days from the date you sign this Release to revoke it by written
notification to Company.  After this seven (7) day period, this
Release is final and binding and may not be revoked;

    

    4. You have
been advised to seek legal counsel and have had an opportunity to do
so;

    

    5. You would
not otherwise be entitled to the benefits provided under your Employment
Agreement with Company and Parent had you not agreed to waive any right you have
to bring a lawsuit or legal claim against the Releasees; and

    

    6. Your
agreement to the terms set forth above is voluntary.

    

    
      	
              Name:

            	 
      	 
      	 
      
	
              Signature:

            	 
      	
              Date:

            	 
      
	
              Received
      by:

            	 
      	
              Date:

            	 
      

    

    

    EXHIBIT
1

    

    1.

    

    2.

    

    3.

    

    4.

    

    5.

    

    etc.

    

    NOTE:
THIS EXHIBIT IS TO BE COMPLETED AT THE TIME OF TERMINATION TO REFLECT ALL
BENEFITS AND PAYMENTS MADE UNDER THE EMPLOYMENT AGREEMENT.

    

    Acknowledged
and Agreed:

    

    
      	
              THE
      CONNECTICUT WATER COMPANY

            	 
      	
              EMPLOYEE

            
	
              By

            	 
      	 
      	 
      
	
                 Its

            	 
      	 
      	 
      
	
              CONNECTICUT
      WATER SERVICE, INC.

            	 
      	 
      
	
              By

            	 
      	 
      	 
      
	
                 Itsserp_agreement.htm

    
      AMENDED
AND RESTATED

      SUPPLEMENTAL EXECUTIVE
RETIREMENT AGREEMENT

      

      

      This
Agreement, made this _____ day of _________, 2008 by and between THE CONNECTICUT
WATER COMPANY (hereinafter referred to as the "Employer") and
[___________________] (hereinafter referred to as the "Employee").

      

      WITNESSETH
THAT:

      

      WHEREAS,
the Employee has and is expected to continue to render valuable services to the
Employer, and

      

      WHEREAS,
the Employer desires to ensure that it will have the benefit of the Employee's
services until [he] reaches retirement, and

      

      WHEREAS,
the Employer wishes to assist the Employee in providing for the financial
requirements of the Employee in the event of [his] retirement, disability or
death; and

      

      WHEREAS, the Employer and the Employee
entered into an amended and restated Supplemental Executive Retirement Agreement
dated [______________]; and

      

      WHEREAS, the parties wish to amend and
restate the Supplemental Retirement Agreement to comply with Section 409A of the
Internal Revenue Code of 1986, as amended, and regulations issued thereunder
(collectively “Section 409A”);

      

      NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the parties hereto agree to enter into this Amended
and Restated Supplemental Executive Retirement Agreement, effective
January 1, 2009, as follows:

      

      1.           SUPPLEMENTAL RETIREMENT
BENEFIT

      

      a.           Normal or Deferred
Retirement.  If, upon or after the Employee's attainment of age
65, the Employee shall separate from service and [he] shall be eligible to
receive a benefit under The Connecticut Water Company Employees’ Retirement Plan
(hereinafter referred to as the “Retirement Plan”), the Employee shall be
entitled to receive pursuant to this Agreement a benefit having a value equal to
an annual benefit for [his] life of (a) 60% of the Employee's Average Earnings
reduced by (b) the annual benefit payable to the Employee under the Retirement
Plan in the form of a single life annuity for the life of the Employee (whether
or not the benefit under the Retirement Plan is actually paid in such form),
commencing at the same time as of which benefits commence hereunder (whether or
not the benefit under the Retirement Plan commences at such time), [and further
reduced by the annual benefit payable to Employee under any qualified defined
benefit plan maintained by ____________________ in the form of a single life
annuity on the life the Employee (whether or not the benefit under such plan is
actually paid in such form) commencing at the same time as of which benefits
commence hereunder (whether or not the benefit under such plan commences at such
time).]

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

        

      

      Such
benefit will be payable in accordance with Section 2 below.  The
date as of which benefits commence hereunder is the first day of the month
following the Employee’s separation from service, even though actual payment may
be delayed in accordance with Section 2 hereof.

      

      b.           Early
Retirement.  If, upon or after the Employee's attainment of age
55 and prior to attainment of age 65, the Employee shall separate from service
and [he] shall be eligible to receive a benefit under the Retirement Plan, the
Employee shall be entitled to receive pursuant to this Agreement a benefit
having a value equal to an annual benefit for [his] life of (a) 60% of the
Employee's Average Earnings reduced by (b) the annual benefit payable to the
Employee under the Retirement Plan in the form of a single life annuity for the
life of the Employee (whether or not the benefit under the Retirement Plan is
actually paid in such form) commencing at age 65 (whether or not the benefit
under the Retirement Plan commences at such time) [and further reduced by (c)
the annual benefit payable to Employee under any qualified defined benefit plan
maintained by ______________________ in the form of a single life annuity for
the life of the Employee (whether or not the benefit payable under such plan is
actually payable in such form) commencing at age 65 (whether or not the benefit
under such plan commences at such time).]  If such benefit shall
commence to be paid prior to the Employee's attainment of age 62, such benefit
shall be reduced by 4% for each complete year by which the date of benefit
commencement precedes [his] attainment of age 62.  Such benefit shall
be paid in accordance with Section 2 below.

      

      c.           For
purposes of a. and b. above, “Average Earnings” shall have the meaning set forth
in the Retirement Plan, except that in determining Average Earnings, Annual
Earnings (as defined in the Retirement Plan) shall not be limited to the OBRA
'93 annual compensation limit, the annual compensation limit imposed under the
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"), or any
similar limit on annual compensation under Section 401(a)(17) of the Internal
Revenue Code of 1986, as amended (the "Code"), imposed by any future
legislation.

      

      In
determining Average Earnings, if the Employee retires under this Agreement on or
after attainment of age 62, Annual Earnings shall also include the value of all
of the following:  (1) Cash Units, (2) Restricted Stock, and
(3) Performance Shares awarded to a Participant under the Connecticut Water
Service, Inc. Performance Stock Program (the “Program”) for any year in which
such awards are made.  Notwithstanding the foregoing, in no event
shall awards which are long-term awards or PARSAs under the Program be taken
into account in determining Average Earnings.  The value of such
awards (other than long-term awards or PARSAs) shall be included within Annual
Earnings in the year in which such amounts are finally determined and actually
awarded.  Such amounts, if credited to a Performance Share Account,
shall not be counted a second time when payment is made from such
Account.

      

      The
calculation of the benefit set forth in a. and b. above, and of all other
benefits payable under this Agreement, shall be performed by the Compensation
Committee under the Retirement Plan, and the calculations and interpretations of
such Committee shall be final and binding on the parties
hereto.

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

        

      

      The
Employee will not be deemed to have retired unless [he] has experienced a
separation from service as defined in Section 409A of the Code.

      

      d.           Disability
Benefit.  If the Employee shall incur a separation from service
due to a disability, the Employee shall be entitled to receive pursuant to this
Agreement a benefit having a value equal to an annual benefit for [his] life
calculated in the manner set forth in b. above; provided, however, that the
reduction factor pursuant to b. above shall be .72 if the Employee’s benefit
commencement date precedes age 62 by more than 7 complete years.  The
Employee will not be deemed to have terminated employment unless [he] has
experienced a separation from service as defined in Section 409A of the
Code.  Such benefit shall be paid in accordance with Section 2
below.  Notwithstanding the foregoing in this 1d, “disability” shall
be determined by the Compensation Committee, and the Employee will be considered
to be disabled if the Employee is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve months.

      

      e.           Absence of Other
Benefits.  No benefits shall be paid to the Employee pursuant
to this Agreement other than as provided in a. through d. above.

      

      2.           TERMS AND CONDITIONS OF
BENEFIT.  The annual lifetime benefit calculated in accordance
with Section 1 hereof shall be paid in monthly installments on the first day of
each month.  Such installments paid pursuant to 1.a, 1.b or 1.d shall
be calculated as if they were to commence to be paid on the first day of the
first month following the Employee’s separation from
service.  However, if the Employee is a “specified employee” as that
term is defined under Section 409A, at the time of separation from service,
actual payment will commence on the first day of the seventh (7th) month
following the date of the Employee’s separation from service, and the first
payment shall include all payments that would have been made had payments
commenced on the first day of the month following the Employee’s separation from
service, so that the first installment made pursuant to 1.a., 1.b. or 1.d, if
the Employee is a specified employee, shall be equal to seven (7) such
installments.  If the Employee is not a “specified employee” at the
time of separation from service, payment of monthly installments shall commence
on the first day of the first month following the Employee’s separation from
service.

      

      If the
Employee is a specified employee at the time of separation and should die after
separation, but prior to the first day of the seventh (7th) month
following separation from service, a lump sum equal to the amount the Employee
would have received had [he] commenced receiving benefits immediately upon the
first day of the month following separation from service and ending on the date
of death shall be paid to the Employee’s estate; and the Employee’s surviving
spouse, if any, shall receive any 50% survivor annuity payments for the period
from the Employee’s date of death to the first day of the seventh (7th) month
following separation from service.  Any payments made pursuant to the
preceding sentence shall be made on the first day of the seventh (7th) month
following separation from service.

      

      The form
in which the benefit hereunder shall be paid is, if the Employee is unmarried at
the time of separation from service, an annuity for the life of the Employee
only and, if the

      
        
          
             

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      Employee
is married at the time of separation from service, an annuity for the life of
the Employee with the provision that after the Employee's death, 50% of the
annual benefit that was payable to the Employee shall be continued to the
Employee's surviving spouse for life (a "Joint and Survivor
Annuity").  The benefit payable as a Joint and Survivor Annuity shall
be calculated by applying to the benefit calculated in accordance with Section
1.a., l.b. or 1.d. hereof, as appropriate, the factors for the 50% contingent
annuity option set forth in the Retirement Plan.  The Joint and
Survivor Annuity shall be actuarially equivalent to the life annuity form of
payment.

      

      Monthly
installments of benefits shall be paid on the first day of the month and shall
cease to be paid as of the first day of the month following the date of the
Employee's death, unless a Joint and Survivor Annuity is then in effect, in
which event the installments shall continue to be paid on the first day of the
month and shall cease as of the first day of the month following the death of
the Employee's surviving spouse.  A Joint and Survivor Annuity shall
be deemed to be in effect if the Employee is married at the time of separation
from service, regardless of whether the Employee dies prior to actual
commencement of benefits.

      

      3.           DEATH
BENEFIT.  If the Employee has attained age 55 while in service
with the Employer and dies thereafter, while in the service of the Employer, and
if the Employee's spouse or other beneficiary is entitled to a death benefit
under the Retirement Plan, said spouse or other beneficiary shall be entitled to
receive a death benefit pursuant to this Plan.  However, if the
Employee is survived by [his] spouse, such spouse shall be deemed to be entitled
to receive a spousal pre-retirement death benefit under the Retirement Plan even
if a waiver of such spousal pre-retirement death benefit is in effect under such
Plan.  The amount of said death benefit shall be determined as if the
Employee had retired on the day prior to [his] death with either a Joint and
Survivor Annuity in effect, if [his] spouse survives [him], or a five years
certain and life annuity (as described in the Retirement Plan) in effect, if
[he] has no spouse or [his] spouse does not survive [him].  However,
rather than being paid in the form of a survivor annuity or in installments for
the five-year period, payment of the present value of the death benefit shall be
made in a lump sum on the first day of the first month following the Employee’s
death.  The actuarial assumptions to be utilized in computing the
present value thereof shall be the interest rate and mortality assumptions then
being utilized under the Retirement Plan in computing lump sum
payments.

      

      No other
death benefits shall be payable in the event of the Employee's death while in
the service of the Employer.

      

      4.           LIMITATION OF
BENEFIT.  If the Employee's employment shall be terminated for
cause involving fraud, dishonesty, moral turpitude, gross misconduct, gross
failure to perform [his] duties, or disclosure of secret or other confidential
information of the Employer to any competitor or to any person not authorized to
receive such information, neither the Employee, [his] spouse, [his] beneficiary
nor [his] estate shall be entitled to receive any benefit under this
Agreement.

      

      5.           ABSENCE OF
FUNDING.  Benefits payable pursuant to this Agreement shall not
be funded, and the Employer shall not be required to segregate or earmark any of
its assets

      
        
          
            

          

           

        

        
           

          
            

          

        

        
           

        

      

      for the
benefit of the Employee, [his] spouse, [his] beneficiary or [his]
estate.  Such benefits shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment or garnishment by creditors of the Employee, [his] spouse, [his]
beneficiary or [his] estate, and any attempt to anticipate, alienate, transfer,
assign or attach these benefits shall be void.  The Employee, [his]
spouse, [his] beneficiary or [his] estate shall have only a contractual right
against the Employer for the benefits hereunder and shall have the status of
general unsecured creditors.  Notwithstanding the foregoing, in order
to pay benefits pursuant to this Agreement, the Employer may establish a grantor
trust (hereinafter the “Trust”) within the meaning of Section 671 of the
Internal Revenue Code of 1986, as amended.  Some or all of the assets
of the Trust may be dedicated to providing benefits to the Employee, [his]
spouse, [his] beneficiary or [his] estate pursuant to this Agreement, but,
nevertheless, all assets of the Trust shall at all times remain subject to the
claims of the Employer’s general creditors in the event of the Employer’s
bankruptcy or insolvency.

      

      4. MISCELLANEOUS.

      

      a.           This
Agreement may be amended at any time by mutual written agreement of the parties
hereto, but no amendment shall operate to give the Employee, [his] spouse, [his]
estate or any other beneficiary, either directly or indirectly, any interest
whatsoever in any funds or assets of the Employer, except the right to receive
the payments herein provided and the right to receive such payments from assets
held in the Trust.

      

      b.           This
Agreement shall not supersede any other contract of employment, whether oral or
in writing, between the Employer and the Employee, nor shall it affect or impair
the rights and obligations of the Employer and the Employee, respectively,
thereunder.  Nothing contained herein shall impose any obligation on
the Employer to continue the employment of the Employee.

      

      c.           This
Agreement shall be construed in all respects under the laws of the State of
Connecticut.

      

      d.           This
Agreement has been prepared with reference to Section 409A of the Internal
Revenue Code and should be interpreted and administered in a manner consistent
with Section 409A.

      

      e.           This
Amendment and Restatement is effective as of January 1, 2009.

      
        
          
             

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

      IN
WITNESS WHEREOF, the Employer and the Employee have executed this Agreement on
the day and year above written.

      
        

        The Connecticut Water
Company

        

        

        December      ,
2008                                                   By                                                                

                  Date

         

        

        

        December      ,
2008                                                   By                                                                

                  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]