Document:

Exhibit

Exhibit 10.2

SEVENTH AMENDMENT TO 
AMENDED AND RESTATED LEASE AGREEMENT NO. 4
THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT NO. 4 (this “Amendment”) is made and entered into as of May 3, 2017 by and between HPT TA PROPERTIES TRUST, a Maryland real estate investment trust, and HPT TA PROPERTIES LLC, a Maryland limited liability company, as landlord (collectively, “Landlord”), and TA OPERATING LLC, a Delaware limited liability company, as tenant (“Tenant”).
W I T N E S S E T H:
WHEREAS, Landlord and Tenant are parties to that certain Amended and Restated Lease Agreement No. 4, dated as of June 9, 2015, as amended by that certain First Amendment to Amended and Restated Lease Agreement No. 4, dated as of June 16, 2015, that certain Second Amendment to Amended and Restated Lease Agreement No. 4, dated as of June 23, 2015, that certain Third Amendment to Amended and Restated Lease Agreement No. 4, dated as of September 23, 2015, that certain Fourth Amendment to Amended and Restated Lease Agreement No. 4, dated as of March 31, 2016, that certain Fifth Amendment to Amended and Restated Lease Agreement No. 4, dated as of June 22, 2016, and that certain Sixth Amendment to Amended and Restated Lease No. 4, dated as of September 14, 2016 (as so amended, the “Lease”); 
WHEREAS, as of the date of this Amendment, HPT TA Properties Trust has acquired from Tenant certain land and improvements comprising a travel center having an address at 2150-2240 Beltline Boulevard, Columbia, South Carolina 29209, as further described on Exhibit A-40 attached to this Amendment (collectively, the “Columbia Property”); and 
WHEREAS, Landlord and Tenant desire to amend the Lease to include the Columbia Property as a Property (as defined in the Lease);
NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree, as of the date of this Amendment, as follows:
1.    Capitalized Terms.  Capitalized terms used and not otherwise defined in this Amendment shall have the meanings given such terms in the Lease.  
2.    Base Year Date.  The defined term “Base Year” shall mean, with respect to the Columbia Property, the 2020 calendar year.
3.    Commencement Date.  The defined term “Commencement Date” shall mean, with respect to the Columbia Property, the date of this Amendment.    
4.    Minimum Rent.  The defined term “Minimum Rent” set forth in Section 1.68 of the Lease is hereby deleted in its entirety and replaced with the following:

{B2125810; 4}    

“Minimum Rent” shall mean Fifty Million Seven Hundred Twelve Thousand Three Hundred Twelve and 71/100ths Dollars ($50,712,312.71), subject to adjustment as provided in Section 3.1.1(b).
5.    Leased Property.  Section 2.1(a) of the Lease is hereby amended by deleting the reference to “Exhibits A-1 through A-39” in the second line thereof and replacing it with a reference to “Exhibits A-1 through A-40”.
6.    Exhibit A.  Exhibit A to the Lease is hereby amended by (a) deleting the initial page entitled “EXHIBITS A-1 through A-39” therefrom in its entirety and replacing it with the page entitled “EXHIBITS A-1 through A-40” attached hereto and (b) adding Exhibit A-40 attached to this Amendment immediately following Exhibit A-39 to the Lease.    
7.    Exhibit C.  Exhibit C to the Lease is hereby deleted in its entirety and replaced with Exhibit C attached to this Amendment.     
8.    Ratification.  As amended hereby, the Lease is hereby ratified and confirmed and all other terms remain in full force and effect.
9.    Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
 

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IN WITNESS WHEREOF, Landlord and Tenant have caused this Amendment to be duly executed, as a sealed instrument, as of the date first above written.
LANDLORD:
HPT TA PROPERTIES TRUST
By:    /s/ Mark L. Kleifges                
Mark L. Kleifges
Treasurer and Chief Financial Officer

HPT TA PROPERTIES LLC
By:    /s/ Mark L. Kleifges                
Mark L. Kleifges
Treasurer and Chief Financial Officer

TENANT:
TA OPERATING LLC

By:    /s/ Mark R. Young                
Mark R. Young
Executive Vice President 

Reference is made to that certain Guaranty Agreement, dated as of June 9, 2015, given by TRAVELCENTERS OF AMERICA LLC and TRAVELCENTERS OF AMERICA HOLDING COMPANY LLC, each a Delaware limited liability company (collectively, “Guarantors”), to Landlord with respect to Tenant’s obligations under the Lease (the “Guaranty”).  Guarantors hereby confirm that all references in such Guaranty to the word “Lease” shall mean the Lease, as defined therein, as amended by this Amendment (and any prior amendments referenced in this Amendment), and said Guarantors hereby reaffirm the Guaranty. 

TRAVELCENTERS OF AMERICA LLC

By: /s/ Mark R. Young    
      Mark R. Young
      Executive Vice President

TRAVELCENTERS OF AMERICA HOLDING COMPANY LLC

By: /s/ Mark R. Young    
      Mark R. Young
      Executive Vice President

EXHIBITS A-1 through A-40
Land

	
			
	Exhibit
	TA Site No.
	Property Address

	A-1
	224
	1806 Highway 371 W, Prescott, AR 71857.

	A-2
	41
	46155 Dillon Road, Coachella, CA 92236.

	A-3
	346
	28991 West Gonzaga Rd., Santa Nella, CA 95322.

	A-4
	148
	5101 Quebec Street, Commerce City (Denver East),   CO 80022.

	A-5
	22
	327 Ruby Road, Willington, CT 06279.

	A-6
	53
	556 St. Rt. 44, Wildwood, FL 34785.

	A-7
	45
	P.O. Box 592,   Madison, GA 30650.

	A-8
	367
	5915 Monee Rd., Monee, IL 60449.

	A-9
	43
	4510 Broadway, Mt. Vernon,   IL 62864.

	A-10
	257
	10346 S. State Rd. 39, Clayton, IN 46118.

	A-11
	220
	1600 West US Hwy 20, Porter, IN 46304.

	A-12
	252
	2775 US Hwy 75, Lebo (Beto Junction), KS 66856.

	A-13
	28
	145 Richwood Road, Walton, KY 41094.

	A-14
	180
	1682 Gause Blvd., Slidell, LA 70458.

	A-15
	19
	1400 Elkton Road, Elkton, MD 21921.

	A-16
	175
	3265 N. Service Road East, Foristell, MO 63348.

	A-17
	193
	8033 W. Holling Rd.,   Alda (Grand Island), NE 68810.

	A-18
	6
	2 Simpson Road, Columbia, NJ 07832.

	A-19
	81
	2501 University Blvd. NE, Albuquerque, NM 87107.

	A-20
	207
	753 Upper Court St., Binghamton, NY 13904.

	A-21
	194
	8420 Alleghany Rd., Corfu (Pembroke), NY 14036.

	A-22
	221
	153 Wiggins Road, Candler, NC 28715.

	A-23
	701
	715 US 250 East, Ashland, OH 44805.

	A-24
	139
	12403 US Rt. 35 NW, Jeffersonville, OH 43128.

	A-25
	95
	4450 Portage St. NW, North Canton, OH 44720.

	A-26
	152
	P.O. Box 171,   Sayre, OK 73662.

	A-27
	67
	5644 SR 8, Harrisville (Barkeyville),   PA 16038.

	A-28
	68
	5600 Nittany Valley Drive, Lamar, PA 16848.

	A-29
	179
	3014 Paxville Highway, Manning, SC 29102.

	A-30
	245
	155 Hwy. 138, Denmark (Jackson), TN 38391.

	A-31
	34
	111 N. First Street, Nashville, TN 37213.

	A-32
	150
	7751 Bonnie View Road, Dallas (South), TX 75241.

	A-33
	153
	1010 Beltway Parkway, Laredo, TX 78045.

	A-34
	232
	4817 I-35 North, New Braunfels, TX   78130.

	A-35
	32
	RR1, Valley Grove, WV 26060.

	A-36
	188
	P.O. Box 400,   Ft. Bridger, WY 82933.

	A-37
	242
	15874 Eleven Mile Road, Battle Creek, MI 49014.

	A-38
	246
	3747 Express Drive, Holbrook, AZ 86025.

	A-39
	333
	160 State Highway 77, Hillsboro, TX 76645.

	A-40
	238
	2150-2240 Beltline Boulevard, Columbia, SC 29209.

 
[See attached copies.]

EXHIBIT A-40 
 
2150-2240 Beltline Boulevard 
Columbia, SC 29202

(See attached copy.) 

Legal Description
All that certain piece, parcel or lot of land, together with any improvements thereon, situate, lying and being in the City of Columbia in the County of Richland, State of South Carolina, containing approximately 29 acres, as shown on a Land Title Survey and Partial Topographical Map prepared for Travel Centers of America by Cox & Dinkins, Inc., dated January 9, 2007, last revised July 31, 2007, recorded August 3, 2007 in the Office of the Register of Deeds for Richland County in Record Book 1343 at Page 1842, and having the following boundaries and measurements shown thereon: Beginning at a Conc. mon. (o), located at the intersection of the southern right-of-way margin of South Beltline Boulevard and the eastern right-of-way margin of Bluff Road, this being the Point of Beginning (P.O.B); thence turning and running along the southern right-of-way margin of South Beltline Boulevard for the following bearings and distances: N 68°28'14" E for a distance of 209.71 to a Conc. mon. (o); thence turning and running in a curved line of length 147.68' feet, (curve of radius 1663.31 feet, chord bearing of N 66°51'12" E, chord distance of 147.63 feet) to a Conc. mon. (o); thence turning and running in a curved line of length 300.49' feet, (curve of radius 1663.31 feet, chord bearing of N 58°56'19" E, chord distance of 300.08 feet) to a 5/8" Rebar (o); thence turning and running in a curved line of length 31.24' feet, (curve of radius 1663.31 feet, chord bearing of N 51°35'15" E, chord distance of 31.24 feet) to a 1/2" Rebar (n); thence turning and running N 45°42'08" E for a distance of 100.45 feet to a 1/2" Rebar (n); thence turning and running N 45°42'08" E for a distance of 123.43 feet to a 5/8" Rebar (o); thence turning and running N 45°42'08" E for a distance of 46.99 feet to a 1/2" Rebar (n); thence turning and running N 45°42'08" E for distance of 353.10 feet to a 5/8" Rebar (o); thence turning and running N 45°38'27" E for a distance of 60.33 feet to a 1/2" Rebar (o); thence turning and running S 57°53'27" E along property of now or formerly Commercial Credit Land Two, LLC for a distance of 540.09 feet to a 1/2" Rebar (o); thence turning and running along property of now or formerly The City of Columbia for the following bearings and distances: S 13°54'23" W for a distance of 117.02 feet to a 3/4" Pipe (o); thence turning and running S 23°48'44" E for a distance of 180.09 feet to a 3/4" Pipe (o); thence turning and running S 01°09'23" W for a distance of 131.34 feet to a Railroad Rail (o); thence turning and running S 18°03'02" W for a distance of 116.37 feet to a Railroad Rail (o); thence turning and running S 39°09'20" W for a distance of 42.76 feet to a 1" Pipe (o); thence turning and running S 49°29'07" W for a distance of 188.24 feet to a Railroad Rail (o); thence turning and running S 14°42'31" W for a distance of 249.63 feet to a Railroad Rail (o); thence turning and running S 37°38'55" W for a distance of 287.86 feet to a Conc. mon. (o); thence turning and running S 29°23'07" W for a distance of 14.52 feet to a Conc. mon. (o); thence turning and running along the northern right-of-way margin of I-77 Southeastern Beltway Exit Ramp for the following bearings and distances: in a curved line of length 89.31 feet, (curve of radius 473.92 feet, chord bearing of N 60°04'45" W, chord distance of 89.18 feet) to a Conc. mon. (o); thence turning and running N 54°40'56" W for a distance of 256.89 feet to a 1/2" Rebar (o); thence turning and running in a curved line of length 372.23 feet, (curve of radius 602.02 feet, chord bearing of N 72°17'23" W, chord distance of 366.32 feet) to a 1/2" Rebar (n); thence turning and running in a curved line of length 228.79 feet, (curve of radius 602.02 feet, chord bearing of S 79°06'36" W, chord distance of 227.42 feet) to a 1/2" Rebar (o); thence turning and running S 68°03'37" W for a distance of 79.77 feet to a 1/2" Rebar (o); thence turning and running N 68°31'45" W for a distance of 72.20 feet to a 1/2" Rebar (o); thence turning and running along the eastern right-of-way margin of Bluff Road for the following bearings and distances: in a curved line of length 203.89 feet, (curve of radius 4082.00 feet, chord bearing 

of N 25°39'13" W, chord distance of 203.87 feet) to a 1/2" Rebar (o); thence turning and running in a curved line of length 68.85 feet, (curve of radius 4082.00 feet, chord bearing of N 27°29'57" W, chord distance of 68.85 feet) to a 1/2" Rebar (o); thence turning and running in a curved line of length 106.88 feet, (curve of radius 4082.00 feet, chord bearing of N 29°09'16" W, chord distance of 106.87 feet) to a Conc. mon. (o); thence turning and running N 20°56'21" E for a distance of 65.73 feet to a Conc. mon. (o); the Point of Beginning (P.O.B.).
TAX MAP NUMBER:  13605-02-01
This being the same property conveyed to TA Operating LLC by deed from Blanchard Machinery Company dated August 3, 2007 and recorded August 3, 2007 in the Office of the Register of Deeds for Richland in Book 1343 at Page 3016.

EXHIBIT C

Petro Properties

	
		
	

TA Site No.
	

Property Address

	346
	28991 West Gonzaga Rd., Santa Nella, CA 95322.

	367
	5915 Monee Rd., Monee, IL 60449.

	238
	2150-2240 Beltline Boulevard, Columbia, SC 29202.Exhibit 101 - PSU Agreement

		

			Exhibit 10.1

		

		
			2017 PSU Agreement
		

		
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			AQUA AMERICA, INC.
		

		
			2009 OMNIBUS EQUITY COMPENSATION PLAN
		

		
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			PERFORMANCE-BASED SHARE UNIT GRANT
		

		
			TERMS AND CONDITIONS
		

		
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			1.Grant of Performance Units.  
		

		
			These Performance-Based Share Unit Grant Terms and Conditions (the “Grant Conditions”) shall apply and be part of the grant made by Aqua America, Inc., a Pennsylvania corporation (the “Company”), to the Grantee named in the Performance-Based Share Unit Grant  (the “Performance-Based Unit Grant”) to which these Grant Conditions are attached (the “Grantee”), under the terms and provisions of the Aqua America, Inc. 2009 Omnibus Equity Compensation Plan, as amended and restated (the “Plan”).  The applicable provisions of the Plan are incorporated into the Grant Conditions by reference, including the definitions of terms contained in the Plan (unless such terms are otherwise defined herein). The Grantee is an employee of the Company, its subsidiaries or its Affiliates (collectively, the “Employer”).  
		

		
			Subject to the terms and vesting conditions hereinafter set forth, the Company,  with the approval and at the direction of the Executive Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”), has granted to the Grantee a target award  (the “Target Award”) of performance-based share units as specified in the Performance-Based Share Unit Grant (the “Performance Units”). The Performance Units are contingently awarded and shall be earned, vested and payable if and to the extent that the performance goals described on Schedule A (the “Performance Goals”), employment conditions and other conditions of these Grant Conditions are met.  The Performance Units are granted with Dividend Equivalents (as defined in Section 6).
		

		
			2.Vesting.
		

		
			(a)Except as otherwise set forth in these Grant Conditions, the Grantee shall earn and vest in a number of Performance Units based on the attainment of the Performance Goals as of the end of the Performance Period,  provided that the Grantee continues to be employed by the Employer through the Vesting Date stated on the Performance-Based Share Unit Grant (the “Vesting Date”).  The “Performance Period” is the performance period beginning and ending on the applicable dates stated on the Performance-Based Share Unit Grant.  The “Vesting Period” is the period beginning on the Grant Date and ending on the Vesting Date.
		

		
			(b)Except as otherwise set forth in these Grant Conditions,  at the end of the Performance Period, the Committee will determine whether and to what extent the Performance Goals have been met and the amount earned with respect to the Performance Units.  The Grantee can earn up to two hundred percent (200%) of the Target Award based on the attainment of the Performance Goals.
		

		 

		

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			(c)Except as described in Section 3 below, the Grantee must continue to be employed by the Employer throughout the Vesting Period in order for the Grantee to vest and receive payment with respect to the earned Performance Units.
		

		
			(d)Except as specifically provided below, no Performance Units shall vest prior to the Vesting Date, and if the Performance Goals are not attained at the end of the Performance Period, the Performance Units shall be immediately forfeited and shall cease to be outstanding.  
		

		
			3.Termination of Employment on Account of Retirement, Death, or Disability.    
		

		
			(a)Except as described below, if the Grantee ceases to be employed by the Employer prior to the Vesting Date, the Performance Units shall be forfeited as of the termination date and shall cease to be outstanding.
		

		
			(b)If the Grantee ceases to be employed by the Employer during the Vesting Period on account of the Grantee’s death or Disability, the Grantee’s outstanding Performance Units shall remain outstanding through the Vesting Period and the Grantee shall earn Performance Units based on the attainment of the Performance Goals, as determined following the end of the Performance Period (or as described in Section 4, if applicable).  The earned Performance Units shall be paid as described in Section 5.  
		

		
			(c)If the Grantee ceases to be employed by the Employer during the Vesting Period on account of Retirement (defined below), the Grantee shall earn a pro-rata portion of the outstanding Performance Units based on attainment of the Performance Goals, as determined following the end of the Performance Period (or as described in Section 4, if applicable).  The pro-rated portion shall be determined based on the number of Performance Units earned based on the attainment of the Performance Goals during the Performance Period, multiplied by a fraction, the numerator of which is the number of completed full months following the Grant Date and prior to the Retirement Date in which the Grantee was employed by the Employer and the denominator of which is thirty-six (36).  The pro-rated earned Performance Units shall be paid as described in Section 5.    
		

		
			(d)For purposes of these Grant Conditions, “Retirement” shall mean the Grantee’s voluntary termination of employment after the Grantee has attained age fifty-five (55) and has a combination of age and full years of service with the Employer that is equal to or greater than seventy (70).
		

		
			4.Change in Control.  
		

		
			(a)If a Change in Control occurs during the Vesting Period, the Grantee shall earn outstanding Performance Units as of the date of the Change in Control (the “Change in Control Date”) as follows:
		

		
			(i)If the Change in Control occurs before the end of the Performance Period, the Grantee shall earn the greater of (x) the number of Performance Units earned based on the attainment of the Performance Goals from the beginning of the Performance Period to the Change in Control Date,  or (y) the Target Award.   
		

		 

		

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			(ii)If a Change in Control occurs after the end of the Performance Period but before the Vesting Date, the Grantee shall earn Performance Units based on the attainment of the Performance Goals as of the end of the Performance Period.
		

		
			Performance Units earned as of the Change in Control Date, as described above in subsection (a)(i) or (ii), are referred to as the “CIC Earned Units.”     All reference in this Agreement to “Performance Units” includes CIC Earned Units on and after a Change in Control.
		

		
			(b)The Grantee shall vest in the CIC Earned Units on the Vesting Date if the Grantee continues to be employed by the Employer through the Vesting Date.  Except as described below, the CIC Earned Units shall only vest if the Grantee continues to be employed by the Employer through the Vesting Date.  
		

		
			(c)If prior to the Vesting Date, a Change in Control occurs and the Grantee ceases to be employed by the Employer upon or following a Change in Control on account of (i) the Grantee’s Retirement, (ii) the Grantee’s termination by the Company without Cause, or (iii) the Grantee’s Disability or death, the CIC Earned Units shall vest as of the termination date.    
		

		
			(d)If the Grantee ceases to be employed by the Employer for any other reason before the Vesting Date, the Grantee shall forfeit the CIC Earned Units as of the date of termination.  
		

		
			5.Payment with Respect to Performance Units.  
		

		
			(a)Except as otherwise set forth in Section 4, if the Committee certifies that the Performance Goals and other conditions to payment of the Performance Units have been met, shares of Company Stock equal to the vested earned Performance Units shall be issued to the Grantee on the Vesting Date, subject to applicable tax withholding and Section 16 below.  
		

		
			(b)If, prior to the Vesting Date, a Change in Control occurs and the Grantee continues to be employed by the Employer through the Vesting Date, shares of Company Stock (or other consideration, as described below) equal to the vested CIC Earned Units shall be issued to the Grantee on the Vesting Date, subject to applicable tax withholding and Section 16 below.    
		

		
			(c)If, prior to the Vesting Date, a  Change in Control occurs and the Grantee ceases to be employed by the Employer on or after the Change in Control on account of (i) the Grantee’s Retirement, (ii) the Grantee’s termination by the Employer without Cause,  or (iii) the Grantee’s Disability or death, shares of Company Stock (or other consideration, as described below) equal to the vested CIC Earned Units shall be issued to the Grantee within sixty (60) days following the Grantee’s date of termination, subject to applicable tax withholding and Section 16 below.
		

		
			(d)If the Grantee terminates employment on account of the Grantee’s Disability, death or Retirement before a Change in Control, any outstanding Performance Units under Section 3(b) or 3(c) may be earned as CIC Earned Units pursuant to Section 4(a), but in the event such termination is on account of Retirement, such outstanding Performance Units shall be prorated by applying the fraction in Section 3(c), and such CIC Earned Units shall vest on the date of the Change in Control.  Shares of Company Stock (or such other consideration, as described below) equal to the vested CIC Earned Units shall be issued to the Grantee within sixty (60) days after the Change in Control, subject to applicable tax withholding and Section 16 below.       
		

		 

		

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			(e)If, in connection with a Change in Control, shares of Company Stock are converted into the right to receive a cash payment or other form of consideration, the vested CIC Earned Units shall be payable in such form of consideration, as determined by the Committee.
		

		
			(f)Any fractional shares with respect to vested earned Performance Units shall be paid to the Grantee in cash.  
		

		
			6.Dividend Equivalents with Respect to Performance Units.  
		

		
			(a)Dividend Equivalents shall accrue with respect to Performance Units and shall be payable subject to the same vesting terms and other conditions as the Performance Units to which they relate.  Dividend Equivalents shall be credited when dividends are declared on shares of Company Stock from the Grant Date until payment date for the vested earned Performance Units.  If and to the extent that the underlying Performance Units are forfeited, all related Dividend Equivalents shall also be forfeited.  
		

		
			(b)While the Performance Units are outstanding, the Company will keep records in a bookkeeping account for the Grantee.  On each date on which a dividend is declared by the Company on Company Stock, the Company shall credit to the Grantee’s account an amount equal to the Dividend Equivalents associated with the Performance Units held by the Grantee on the record date for the dividend.  No interest will be credited to any such account.
		

		
			(c)Dividend Equivalents shall be paid in cash at the same time as the underlying vested earned Performance Units are paid.  
		

		
			(d)Notwithstanding the foregoing, if shares of Company Stock are converted to cash as described in Section 5(e) above in connection with a Change in Control, Dividend Equivalents shall cease to be credited with respect to the Performance Units.
		

		
			7.Certain Corporate Changes.  
		

		
			If any change is made to the Company Stock (whether by reason of merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination of shares, or exchange of shares or any other change in capital structure made without receipt of consideration), then unless such event or change results in the termination of all the Performance Units, the Committee shall adjust, in an equitable manner and as provided in the Plan, the number and class of shares underlying the Performance Units to reflect the effect of such event or change in the Company’s capital structure in such a way as to preserve the value of the Performance Units, and the Committee shall adjust the Performance Goals as necessary to reflect the effect of such event or change in the Company’s capital structure. Any adjustment that occurs under the terms of this Section 7 or the Plan will not change the timing or form of payment with respect to any Performance Units and will be consistent with Section 162(m) of the Code, to the extent applicable.
		

		
			8.No Stockholder Rights.    
		

		
			No shares of Company Stock shall be issued to the Grantee at the time the grant is made, and the Grantee shall not be, nor have any of the rights or privileges of, a shareholder of the Company with respect to any Performance Units recorded in the account, including no voting rights and no rights to receive dividends (other than Dividend Equivalents).       
		

		 

		

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			9.No Right to Continued Employment.    
		

		
			Neither the award of Performance Units, nor any other action taken with respect to the Performance Units, shall confer upon the Grantee any right to continue to be employed by the Employer or shall interfere in any way with the right of the Employer to terminate the Grantee’s employment at any time. 
		

		
			10.Termination or Amendment.    
		

		
			These Grant Conditions and the award made hereunder may be terminated or amended by the Committee, in whole or in part, in accordance with the applicable terms of the Plan.
		

		
			11.Notice.    
		

		
			Any notice to the Company provided for in these Grant Conditions shall be addressed to it in care of the Company’s Vice President for Human Resources, and any notice to the Grantee shall be addressed to the Grantee at the current address shown on the payroll system of the Company, or to such other address as the Grantee may designate to the Company in writing.  Any notice provided for hereunder shall be delivered by hand, sent by telecopy or electronic mail or enclosed in a properly sealed envelope addressed as stated above, registered and deposited, postage and registry fee prepaid in the United States mail or other mail delivery service.  Notice to the Company shall be deemed effective upon receipt.  By receipt of these Grant Conditions,  the Grantee hereby consents to the delivery of information (including without limitation, information required to be delivered to the Grantee pursuant to the applicable securities laws) regarding the Company, the Plan, and the Performance Units via the Company’s electronic mail system or other electronic delivery system.
		

		
			12.Incorporation of Plan by Reference.    
		

		
			The Performance-Based Share Unit Grant and these Grant Conditions are made pursuant to the terms of the Plan, the terms of which are incorporated herein by reference, and shall in all respects be interpreted in accordance therewith. The decisions of the Committee shall be conclusive upon any question arising hereunder. The Grantee’s receipt of the Performance Units constitutes such the Grantee’s acknowledgment that all decisions and determinations of the Committee with respect to the Plan, these Grant Conditions, and/or the Performance Units shall be final and binding on the Grantee, his or her beneficiaries and any other person having or claiming an interest in the Performance Units.    The settlement of any award with respect to the Performance Units is subject to the provisions of the Plan and to interpretations, regulations and determinations concerning the Plan as established from time to time by the Committee in accordance with the provisions of the Plan. A copy of the Plan will be furnished to each Grantee upon request. 
		

		
			13.Income Taxes; Withholding Taxes.  
		

		
			The Grantee is solely responsible for the satisfaction of all taxes and penalties that may arise in connection with the award or settlement of Performance Units pursuant to these Grant Conditions.  At the time of taxation, the Employer shall have the right to deduct from other compensation, or to withhold shares of Company Stock, in an amount equal to the federal (including FICA), state, local and foreign taxes and other amounts as may be required by law to be withheld with respect to the Performance Units,  as approved in advance by the Committee.
		

		 

		

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			14.Governing Law.    
		

		
			The validity, construction, interpretation and effect of the Performance-Based Share Unit Grant and these Grant Conditions shall exclusively be governed by, and determined in accordance with, the applicable laws of the Commonwealth of Pennsylvania, excluding any conflicts or choice of law rule or principle.  
		

		
			15.Assignment.    
		

		
			The Performance-Based Share Unit Grant and these Grant Conditions shall bind and inure to the benefit of the successors and assignees of the Company.  The Grantee may not sell, assign, transfer, pledge or otherwise dispose of the Performance Units, except to a successor grantee in the event of the Grantee’s death.
		

		
			16.Section 409A. 
		

		
			The Performance-Based Share Unit Grant and these Grant Conditions are intended to comply with Code Section 409A or an exemption, and payments may only be made under these Grant Conditions upon an event and in a manner permitted by Code Section 409A, to the extent applicable.  Notwithstanding anything in these Grant Conditions to the contrary, if required by Code Section 409A, if the Grantee is considered a “specified employee” for purposes of Code Section 409A and if any payment under these Grant Conditions is required to be delayed for a period of six (6) months after separation from service pursuant to Code Section 409A, such payment shall be delayed as required by Code Section 409A, and the accumulated payment amounts shall be paid in a lump sum payment within ten (10) days after the end of the six (6)-month period.  If the Grantee dies during the postponement period prior to payment, the amounts withheld on account of Code Section 409A shall be paid to the personal representative of the Grantee’s estate within sixty (60) days after the date of the Grantee’s death.  Notwithstanding anything in these Grant Conditions to the contrary, if the Performance Units are subject to Code Section 409A and if required by Code Section 409A, any payments to be made upon a termination of employment under these Grant Conditions may only be made upon a “separation from service” under Code Section 409A.  In no event may the Grantee, directly or indirectly, designate the calendar year of a payment, except in accordance with Code Section 409A.    Notwithstanding anything in these Grant Conditions to the contrary, if required by Code Section 409A, if CIC Earned Units are subject to Code Section 409A, and if a Change in Control is not a “change in control event” under Code Section 409A or the payment event does not occur upon or within two years following a “change in control event” under Code Section 409A, any vested CIC Earned Units shall be paid to the Grantee upon the Vesting Date and not on account of an earlier termination of employment.    
		

		
			17.Company Policies.    
		

		
			This Performance-Based Unit Grant and all shares issued pursuant to this grant shall be subject to any applicable recoupment or clawback policies and other policies implemented by the Board, as in effect from time to time.
		

		
			﻿
		

		
			***
		

		

		

		 

		

			6

		

 

		

			 

		

		Schedule A
		

		
			﻿
		

		
			Performance Goals for 2017 Performance Units
		

		
			﻿
		

		
			1.Performance Goals.  
		

		
			The Performance Units shall be earned based on Aqua America’s (the Company’s) achievement of four Performance Goals, as follows:
		

		
			26.47% of the Target Award (22.5% of the Grantee’s total 2017 performance-based grants) shall be earned based on the Company’s TSR (as defined below) as compared to the TSR of the companies in the peer group described in Section 3 below.
		

		
			26.47% of the Target Award (22.5% of the Grantee’s total 2017 performance-based grants) shall be earned based on the Company’s TSR as compared to the TSR of the reference companies in described in Section 4 below.
		

		
			23.53% of the Target Award (20% of the Grantee’s total 2017 performance-based grants) shall be earned based on the achievement of a targeted cumulative level of rate base growth as a result of acquisitions (“Rate Base Growth”) during the Performance Period,  as described in Section 5 below.
		

		
			23.53% of the Target Award (20% of the Grantee’s total 2017 performance-based grants) will be earned based on the achievement of maintaining Operating and Maintenance expenses (“Regulated O&M”) over the Performance Period, as described in Section 6 below.
		

		
			2.Calculation of TSR.    
		

		
			(a)Relative total shareholder return (“TSR”) means the Company’s TSR relative to the TSR of each Peer Company in the Peer Group (as defined below) or each Reference Company (as defined below), as applicable.  At the end of the Performance Period, the TSR for the Company, each Peer Company in the Peer Group and each Reference Company shall be calculated by dividing the Closing Average Share Value (as defined below) by the Opening Average Share Value (as defined below). 
		

		
			(b)The term “Closing Average Share Value” means the average value of the common stock for the trading days during the two calendar months ending on the last trading day of the Performance Period, which shall be calculated as follows: (i) determine the closing price of the common stock on each trading date during the two-month period, (ii) multiply each closing price as of that trading date by the applicable share number described below, and (iii) average the amounts so determined for the two-month period.  The Closing Average Share Value shall take into account any dividends on the common stock for which the ex-dividend date occurred during the Performance Period, as if the dividend amount had been reinvested in common stock at the closing price on the ex-dividend date.  The share number in clause (ii) above, for a given trading day, is the sum of one share plus the cumulative number of shares 
		

		 

		

			1

		

 

		

			 

		

		deemed purchased with such dividends.  Notwithstanding the foregoing, if the Closing Average Share Value is calculated as of a Change in Control, then the Closing Average Share Value shall be based on the two-month period ending immediately prior to the Change in Control.
		

		
			(c)The term “Opening Average Share Value” means the average value of the common stock for the trading days during the two calendar months ending on the last trading day prior to the beginning of the Performance Period, which shall be calculated as follows:  (i) determine the closing price of the common stock on each trading date during the two-month period, (ii) multiply each closing price as of that trading date by the applicable share number described below, and (iii) average the amounts so determined for the two-month period.   The Opening Average Share Value shall take into account any dividends on the common stock for which the ex-dividend date occurred during the two-month period, as if the dividend amount had been reinvested in common stock at the closing price on the ex-dividend date.  The share number in clause (ii) above, for a given trading day, is the sum of one share plus the cumulative number of shares deemed purchased with such dividends.  
		

		
			3.Performance Units Earned Based on Comparative TSR to the Peer Group.  26.47% of the Target Award of Performance Units (the “Peer Group Portion”) shall be earned based on the Company’s TSR as compared to the TSR of the companies in the Peer Group for the Performance Period, in accordance with the following:
		

		
			(a)The Peer Group for this purpose consists of American Water Works Company (AWK), American States Water Company (AWR), Aqua America, Inc. (WTR), Connecticut Water Service, Inc. (CTWS), California Water Service Group (CWT), Middlesex Water Company (MSEX) and SJW Corporation (SJW) (each a “Peer Company” and collectively, the “Peer Group”).
		

		
			(b)The Peer Group shall be subject to change as follows:
		

		
			(i)In the event of a merger, acquisition or business combination transaction of a Peer Company in which the Peer Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Company.  
		

		
			(ii)In the event of a merger, acquisition or business combination transaction of a Peer Company, a “going private” transaction or similar event involving a Peer Company or the liquidation of a Peer Company, in each case where the Peer Company is not the surviving entity or is no longer publicly traded, the company shall no longer be a Peer Company.
		

		
			(iii)In the event of an announced merger, acquisition or business combination transaction of a Peer Company, a “going private” transaction or similar event involving a Peer Company or the liquidation of a Peer Company, or the announcement of an intention to enter into a merger, acquisition or business combination of a Peer Company, a “going private” transaction or similar event, in each case where the Peer Company is not the surviving entity or is no longer publicly traded, the company shall no longer be a Peer Company.
		

		
			(c)The Peer Group Portion shall be earned based on how the Company’s TSR ranks in comparison to the TSRs of the Peer Group in accordance with the following schedule, 
		

		 

		

			2

		

 

		

			 

		

		depending on how many companies remain in the Peer Group at the end of the Performance Period:
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Ordinal Ranking 
of the Company 
(including the 
Company) Versus 
Peer Group 

					
					
						Payout as a 
% of Target 
Award 
(7 Peer 
Companies) 

					
					
						Payout as a 
% of Target 
Award 
(6 Peer 
Companies) 

					
					
						Payout as a 
% of Target 
Award 
(5 Peer 
Companies) 

					
					
						Payout as a 
% of Target 
Award 
(4 Peer 
Companies) 

					
					
						Payout as a 
% of Target 
Award 
(3 Peer 
Companies) 

				
	
					
						1st

					
					
						200%

					
					
						200%

					
					
						200%

					
					
						200%

					
					
						200%

				
	
					
						2nd

					
					
						170%

					
					
						160%

					
					
						150%

					
					
						125%

					
					
						100%

				
	
					
						3rd

					
					
						130%

					
					
						125%

					
					
						100%

					
					
						50%

					
					
						0%

				
	
					
						4th

					
					
						100%

					
					
						75%

					
					
						50%

					
					
						0%

					
					
						N/A

				
	
					
						5th

					
					
						50%

					
					
						25%

					
					
						0%

					
					
						N/A

					
					
						N/A

				
	
					
						6th

					
					
						0%

					
					
						0%

					
					
						N/A

					
					
						N/A

					
					
						N/A

				
	
					
						7th

					
					
						0%

					
					
						N/A

					
					
						N/A

					
					
						N/A

					
					
						N/A

				

		
			﻿
		

		
			﻿
		

		
			4.Performance Units Earned Based on Comparative TSR to the S&P MidCap Utilities Index.  26.47% of the Target Award of the Performance Units (the “S&P Index Portion”) shall be earned based on the Company’s TSR as compared to the TSR of the companies in the S&P MidCap Utilities Index, in accordance with the following:
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Ordinal Ranking 
of the Company 
(including the Company) 
Versus Peer Group

					
					
						Pmt as a %
of Target 
Award
(18 Peer 
Co’s)

					
					
						Pmt as a %
 of Target 
Award
(17 Peer 
Co’s)

					
					
						Pmt as a %
 of Target 
Award
(16 Peer 
Co’s)

					
					
						Pmt as a %
 of Target 
Award
(15 Peer 
Co’s)

					
					
						Pmt as a %
 of Target 
Award
(14 Peer 
Co’s)

				
	
					
						Rank

					
					
						Payout

					
					
						Payout

					
					
						Payout

					
					
						Payout

					
					
						Payout

				
	
					
						1

					200.00% 
					200.00% 
					200.00% 
					200.00% 
					200.00% 
				
	
					
						2

					197.22% 
					195.59% 
					193.75% 
					191.67% 
					189.29% 
				
	
					
						3

					183.33% 
					180.88% 
					178.13% 
					175.00% 
					171.43% 
				
	
					
						4

					169.44% 
					166.18% 
					162.50% 
					158.33% 
					153.57% 
				
	
					
						5

					155.56% 
					151.47% 
					146.88% 
					141.67% 
					135.71% 
				
	
					
						6

					141.67% 
					136.76% 
					131.25% 
					125.00% 
					117.86% 
				
	
					
						7

					127.78% 
					122.06% 
					115.63% 
					108.33% 
					100.00% 
				
	
					
						8

					113.89% 
					107.35% 
					100.00% 
					91.67% 
					82.14% 
				
	
					
						9

					100.00% 
					92.65% 
					84.38% 
					75.00% 
					64.29% 
				
	
					
						10

					86.11% 
					77.94% 
					68.75% 
					58.33% 
					0.00% 
				
	
					
						11

					72.22% 
					63.24% 
					53.13% 
					0.00% 
					0.00% 
				
	
					
						12

					58.33% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						13

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						14

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						15

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						16

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						17

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				
	
					
						18

					0.00% 
					0.00% 
					0.00% 
					0.00% 
					0.00% 
				

		
			﻿
		

		
			(a)The companies in the S&P MidCap Utilities Index will be determined on the first day of the Performance Period for purposes of the TSR calculation and will be changed only in 
		
		
 

		

			3

		

 

		

			 

		

		accordance with Section 4(b) below.  No company shall be added to the S&P MidCap Utilities Index during the Performance Period for purposes of the TSR calculation. 

		
		
			(b)The term “Reference Company” means a company in the S&P MidCap Utilities Index as of the first day of the Performance Period and will be subject to change as follows:  
		

		
			(i)In the event of a merger, acquisition or business combination transaction of a Reference Company in which the Reference Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Reference Company.  
		

		
			(ii)In the event of a merger, acquisition or business combination transaction of a Reference Company, a “going private” transaction or similar event involving a Reference Company or the liquidation of a Reference Company, in each case where the Reference Company is not the surviving entity or is no longer publicly traded, the company shall no longer be a Reference Company.
		

		
			(iii)In the event of an announced merger, acquisition or business combination transaction of a Reference Company, a “going private” transaction or similar event involving a Reference Company or the liquidation of a Reference Company, or the announcement of an intention to enter into a merger, acquisition or business combination of a Reference Company, a “going private” transaction or similar event, in each case where the Reference Company is not the surviving entity or is no longer publicly traded, the company shall no longer be a Reference Company.
		

		
			﻿
		

		
			5.Performance Units Earned Based on Rate Base Growth.  23.53% of the Target Award of the Performance Units (the “Rate Base Growth Portion”) shall be earned based on the Company’s growth in rate base from the acquisition of and subsequent capital investment in regulated utility operations.  The Rate Base Growth Portion shall be calculated measured from the first day of the Performance Period through the last day of the Performance Period according to the following schedule: 
		

		

		

		 

		

			4

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Rate Base Growth from Acquisition

					
					
						 

				
	
					
						﻿

					
					
						Acq RB Growth 
in 3 Yrs 
(000's Omitted)

					
					
						RATING 
(% of 23.53%  
PSU's Earned)

					
					
						 

				
	
					
						﻿

					
					
						$

					50,000 
					
					
						50%

					
					
						 

				
	
					
						﻿

					
					
						$

					70,000 
					
					
						60%

					
					
						 

				
	
					
						﻿

					
					
						$

					90,000 
					
					
						70%

					
					
						 

				
	
					
						﻿

					
					
						$

					110,000 
					
					
						80%

					
					
						 

				
	
					
						﻿

					
					
						$

					130,000 
					
					
						90%

					
					
						 

				
	
					
						﻿

					
					
						$

					150,000 
					
					
						100%

					
					
						 

				
	
					
						﻿

					
					
						$

					160,000 
					
					
						110%

					
					
						 

				
	
					
						﻿

					
					
						$

					170,000 
					
					
						120%

					
					
						 

				
	
					
						﻿

					
					
						$

					180,000 
					
					
						130%

					
					
						 

				
	
					
						﻿

					
					
						$

					190,000 
					
					
						140%

					
					
						 

				
	
					
						﻿

					
					
						$

					200,000 
					
					
						150%

					
					
						 

				
	
					
						﻿

					
					
						$

					210,000 
					
					
						160%

					
					
						 

				
	
					
						﻿

					
					
						$

					220,000 
					
					
						170%

					
					
						 

				
	
					
						﻿

					
					
						$

					230,000 
					
					
						180%

					
					
						 

				
	
					
						﻿

					
					
						$

					240,000 
					
					
						190%

					
					
						 

				
	
					
						﻿

					
					
						$

					250,000 
					
					
						200%

					
					
						 

				

		
			﻿
		

		
			If the Rate Base Growth falls between the measuring points on the foregoing schedule, the percentage earned will be based on linear interpolation between the applicable measuring points.
		

		
			6.Performance Units Earned Based on the Achievement of Targeted Operating and Maintenance Expenses.    23.53% of the Target Award of the Performance Units shall be earned based on the Company’s achieving targets for the consolidated operations and maintenance expenses of the Company and its subsidiaries, but excluding operations and maintenance expenses from all market based activities (e.g., Aqua Resources and Aqua Infrastructure) from the first day of the Performance Period through the last day of the Performance Period.  The Regulated O&M shall be calculated according to the following schedule:
		

		
			﻿
		

		

		

		 

		

			5

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Three year 
OM Expense

					
					
						Payout
 Scale

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						904,388

					
					
						25%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						903,388

					
					
						30%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						901,388

					
					
						40%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						899,388

					
					
						50%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						897,388

					
					
						60%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						895,388

					
					
						70%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						893,388

					
					
						80%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						891,388

					
					
						90%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						889,388

					
					
						100%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						887,388

					
					
						110%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						885,388

					
					
						120%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						883,388

					
					
						130%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						881,388

					
					
						140%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						879,388

					
					
						150%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						877,388

					
					
						160%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						875,388

					
					
						170%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						873,388

					
					
						180%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						871,388

					
					
						190%

					
					
						 

				
	
					
						﻿

					
					
						$

					
					
						869,388

					
					
						200%

					
					
						 

				

		
			﻿
		

		
			If the Company’s Regulated O&M falls between the measuring points on the foregoing schedule, the percentage earned will be based on linear interpolation between the applicable measuring points.
		

		
			7.General Terms.  Any portion of the Performance Units that is not earned as of the end of the Performance Period shall be forfeited as of the end of the Performance Period (or as provided above upon an earlier Change in Control).  In no event shall the maximum number of Performance Units that may be payable pursuant to these Grant Conditions exceed 200% of the Target Award. 
		

		
			﻿
		

		 

		

			6

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