Document:

EX-10.5.A:

 

Exhibit 10.5a

AMENDED AND RESTATED 

DEFERRED COMPENSATION AGREEMENT

          THIS AGREEMENT is made as of the 2nd day of December 2004 by and between The
Connecticut Water Company (together with any affiliated companies hereinafter collectively referred
to as the “Employer”) and Thomas R. Marston hereinafter referred to as the “Employee”).

W I T N E S S E T H:

          WHEREAS, the Employee is among a select group of management or highly
compensated employees of the Employer who entered into a Deferred Compensation Agreement
with the Employer made as of the first day of December 2004 (the “Deferred Compensation
Agreement”); and

          WHEREAS, the Employer and the Employee desire to amend and restate the Deferred
Compensation Agreement on the terms herein set forth; and

          WHEREAS, the Employer and the Employee are willing to enter into this Amended and
Restated Deferred Compensation Agreement (the “Agreement”) on the terms herein set forth.

          NOW, THEREFORE, in consideration of the premises and the mutual and dependent
promises herein, the parties hereto agree as follows:

 

 

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     1. DEFERRED COMPENSATION. The Employee may file a written election with
the Employer in the form attached to this Agreement or such other form as may be approved by
the Employer to defer up to 12 percent (12%) of the Employee’s salary. Such amount shall be
credited to a Deferred Compensation Account as provided in Section 2 hereof. This election to
defer the receipt of salary must be made before the beginning of the calendar year for which the
salary is payable and shall remain in effect, unless terminated or changed, or until the date the
Employee ceases to be an employee of the Employer. Any termination or change of a deferral
election must be made on a form provided by the Employer for such purpose and may only be
made with respect to salary which will be earned on and after the January 1 following the
Employer’s receipt of such form provided that such form is received at least seven (7) days prior
to the applicable January 1.

     2. DEFERRED COMPENSATION ACCOUNT. The Employer shall maintain on
its books and records a Deferred Compensation Account to record its liability for future
payments of deferred compensation and interest thereon required to be paid to the Employee or
his beneficiary pursuant to this Agreement. However, the Employer shall not be required to
segregate or earmark any of its assets for the benefit of the Employee or his beneficiary. The
amount reflected in said Deferred Compensation Account shall be available for the Employer’s
general corporate purposes and shall be available to the Employer’s general creditors. The
amount reflected in said Deferred Compensation Account shall not be subject in any manner to
anticipation, alienation, transfer or assignment by the Employee or his beneficiary, and any
attempt to anticipate, alienate, transfer or assign the same shall be void. Neither the Employee
nor his beneficiary may assert any right or claim against any specific assets of the Employer.

 

 

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The Employee or his beneficiary shall have only a contractual right against the Employer for the
amount reflected in said Deferred Compensation Account. Notwithstanding the foregoing, in
order to pay amounts which may become due under 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. The assets in such Trust shall at all times be subject to the
claims of the general creditors of the Employer in the event of the Employer’s bankruptcy or
insolvency, and neither the Employee nor any beneficiary shall have any preferred claim or
right, or any beneficial ownership interest in, any such assets of the Trust prior to the time such
assets are paid to an Employee or beneficiary pursuant to this Agreement.

     The Employer shall credit to said Deferred Compensation Account the amount of any
salary to which the Employee becomes entitled and which is deferred pursuant to Section 1
hereof, such amount to be credited as of the first business day of each month. The Employer
shall also credit to said Deferred Compensation Account an Interest Equivalent in the amount
and manner set forth in Section 3 hereof.

     3. PAYMENT
OF DEFERRED COMPENSATION

     (a) Termination of Employment On or After Attainment of Age 65. If the
Employee’s employment should terminate on or after his attainment of age sixty-five (65) for
any reason other than death or on account of “Cause” as defined in subsection (d) below, he shall

 

 

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be entitled to receive payment of the entire amount of his Deferred Compensation Account
including an Interest Equivalent, as described below, in the form of an actuarially equivalent life
annuity providing for equal annual payments for the life of the Employee with a guarantee that
fifteen (15) annual payments will be made. Such actuarially equivalent life annuity shall be
computed on the basis of a mortality table that assumes a life expectancy of age eighty (80) and
uses the Interest Factor described below.

     There shall be credited to the Employee’s Deferred Compensation Account as of each
January 1 and July 1, commencing with           until payment of such account is made or
begins, as additional deferred compensation, an Interest Equivalent equal to fifty percent (50%)
of the product of (i) the AAA Corporate Bond Yield Averages published by Moody’s Bond
Survey for the Friday ending on or immediately preceding the applicable January 1 and July 1
plus three (3) percentage points (the “Interest Factor”), multiplied by (ii) the balance of the
Employee’s Deferred Compensation Account, including the amount of Interest Equivalent
previously credited to such Employee’s account, as of the preceding day (i.e., December 31 or
June 30). The Interest Factor used to compute the annuity payable upon the Employee’s
termination of employment on or after his attainment of age sixty-five (65) shall be calculated
based upon the Interest Factor as of the January 1 or July 1 immediately preceding the date of
the Employee’s termination of employment, whichever shall fall nearer to the date of the
Employee’s termination of employment. The first annuity payment under this subsection shall
be paid within sixty (60) days after the commencement of the calendar year following the
Employee’s termination of employment.

 

 

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     Notwithstanding the foregoing, if provided by the Board of Directors of the Employer, in
its sole discretion, the Employee shall instead receive payment in a lump sum of the entire
amount of his Deferred Compensation Account, including an Interest Equivalent, as described
above. The lump sum shall be paid within sixty (60) days after the Employee’s termination of
employment or, at the discretion of the Board of Directors of the Employer, within sixty (60)
days after the commencement of the calendar year following the Employee’s termination of
employment.

     (b) Termination of Employment After Attainment of Age 55 and Prior to Attainment
of Age 65. If the Employee’s employment should terminate after his attainment of age
fifty-five
(55) and prior to his attainment of age sixty-five (65) for any reason other than death or on
account of “Cause” as defined in subsection (d) below, he shall be entitled to receive payment of
the entire amount of his Deferred Compensation Account including an Interest Equivalent, as
described below, in the form of equal annual installments over a period equal to the Employee’s
remaining life, assuming a life expectancy of age eighty (80). There shall be credited to the
Employee’s Deferred Compensation Account as of each January 1 and July I, commencing with
           until payment of said annual installments are completed, as additional deferred
compensation, an Interest Equivalent as described in subsection (a) above. The first installment
payment under this subsection shall be paid within sixty (60) days after the commencement of
the calendar year following the Employee’s termination of employment.

 

 

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     Notwithstanding the foregoing, if provided by the Board of Directors of the Employer, in
its sole discretion, the Employee shall instead receive payment in a
lump sum of the entire amount of his Deferred Compensation Account, including an Interest Equivalent, as described in subsection (a) above. The lump sum shall be paid within sixty (60) days after the Employee’s
termination of employment or, at the discretion of the Board of Directors of the Employer,
within sixty (60) days after the commencement of the calendar year following the Employee’s
termination of employment.

     (c) Termination of Employment Prior to Attainment of Age 55. If the Employee’s
employment should terminate prior to his attainment of age fifty-five (55) for any reason other
than death or on account of “Cause” as defined in subsection (d) below, the Employee shall be
entitled to receive payment in a lump sum of the entire amount of his Deferred Compensation
Account, including the same Interest Equivalent as described in subsection (a) above. Payment
under this subsection shall be made within sixty (60) days after the Employee’s termination of
employment or, at the option of the Board of Directors of the Employer, in its sole discretion,
within sixty (60) days after the commencement of the calendar year following the Employee’s
termination of employment.

     (d) Termination of Employment for Cause. If the employment of the Employee is
terminated by the Employer for Cause, the Employee shall be entitled only to a return of
amounts deferred pursuant to Section 1 hereof, and this Agreement-and all payments provided
for in this Agreement, including any obligation to pay interest on deferred compensation, shall

 

 

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terminate. Said deferred amounts shall be paid in a lump sum within sixty (60) days after the
commencement of the calendar year following the Employee’s termination of employment. As
used in this Agreement, the term “Cause” shall mean:

	 	(i)  	the Employee’s rendering, while employed by the Employer, of any
services, assistance or advice, either directly or indirectly, to any person,
firm or organization competing with, or in opposition to, the Employer;
	 
	 	(ii)  	the Employee’s allowing, while employed by the Employer, any use
of his
name by any person, firm or organization competing with, or in
opposition to, the Employer; or
	 
	 	(iii)  	willful misconduct by the Employee, including, but not limited
to, the
commission by the Employee of a felony or the perpetration by the
Employee of a common law fraud upon the Employer.

     (e) Death While Employed. Notwithstanding anything to the contrary contained in
the foregoing, if the Employee should die while employed by the Employer, his beneficiary,
designated pursuant to Section 4 hereof, shall receive in a lump sum, in lieu of the amount(s)
otherwise payable to the Employee under this Agreement, a death benefit equal to the greater of
(i) the Hypothetical Death Benefit, as defined in subsection (g) here-of, and (ii) the entire
amount
of his Deferred Compensation Account at the date of his death, assuming that an Interest

 

 

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Equivalent were credited to such account as of each January 1 and July 1, commencing with July
1, 1996, until the date of death at the rate set forth in subsection (a) hereof. Such beneficiary
shall be entitled to receive such death benefit within ninety (90) days after the Employer has
been notified in writing of the death of the Employee and has been provided with any additional
information, forms or other documents it may reasonably request.

     (f) Death After Termination of Employment. If the Employee should die after
the
termination of his employment with the Employer and prior to the date on which payment of his
Deferred Compensation Account has commenced in the form of an annuity as provided in
subsection (a), or has been made in the form of a lump sum as provided in subsections (a), (b),
(c) or (d), or has been fully distributed in the event of payment in the form of installments as
provided in subsection (b), his beneficiary, designated pursuant to Section 4 hereof, shall receive
in a lump sum, in lieu of the amount(s) otherwise payable to the Employee under this
Agreement, a death benefit equal to the entire amount of the Employee’s Deferred
Compensation Account at the date of his death (or the entire remaining amount of the
Employee’s Deferred Compensation Account at the date of his death in the event that payment
has commenced in the form of installments as provided in subsection (b) and, provided that the
Employee’s employment shall not have terminated on account of “Cause” as defined in
subsection (d) hereof, an Interest Equivalent credited to such account as of each January 1 and
July 1, commencing with            until the date of death at the rate set forth in
subsection
(a) hereof. No Interest Equivalent shall be credited to the Employee’s Deferred Compensation
Account in the event of the Employee’s death after his termination on account of “Cause” as

 

 

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provided in subsection (d) hereof. The Employee’s beneficiary shall be entitled to receive such
death benefit within ninety (90) days after the Employer has been notified in writing of the death
of the Employee and has been provided with any additional information, forms or other
documents it may reasonably request.

     If the Employee should die after the termination of his employment with the Employer
and after the date on which payment of his Deferred Compensation Account and the Interest
Equivalent set forth in subsection (a) hereof has commenced in the form of an annuity as
provided in subsection (a), no additional benefits shall be payable under this Agreement after the
Employee’s death except to the extent that the Employee did not receive prior to his death the
guaranteed fifteen (15) annual payments provided in subsection (a), in which case the unpaid
guaranteed payments shall be paid to the Employee’s beneficiary, designated pursuant to Section
4, in annual payments for the remainder of said guaranteed fifteen (15)-year term.

     If the Employee should die after the termination of his employment with the Employer
and after the date on which payment of his Deferred Compensation Account and, with respect to
payments made in accordance with subsections (a), (b) or (c) hereof, the Interest Equivalent set
forth in subsection (a) hereof, has been paid in the form of a lump sum as provided in
subsections (a), (b), (c) or (d) or has been fully distributed in the form of installments as
provided in subsection (b), no additional benefits shall be payable upon the Employee’s death.

 

 

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     (g) Hypothetical Death Benefit.  For purposes of this Agreement, the term
“Hypothetical Death Benefit” shall mean a lump sum benefit equal to the proceeds of any policy
of key-man life insurance on the life of the Employee, of which the Employer is owner and
beneficiary, and which policy is designated by the Employer as subject to the provisions hereof,
reduced by (i) the amount of any tax imposed on the Employer with respect to such proceeds
and
(ii) the cost to the Employer of any tax deductions postponed as a result of salary deferrals
pursuant to Section I hereof and increased by (iii) the tax deduction to the Employer which
would result from payment of the Hypothetical Death Benefit to a beneficiary of the Employee.
For purposes of (ii) above, an opportunity cost factor of six (6) percent pre-tax interest will be
applied during the period of postponed deductions under (ii). The calculation of the
Hypothetical Death Benefit shall be done by the Employer, whose calculation shall be final and
binding on the Employee and his beneficiary. Anything herein to the contrary notwithstanding,
the Employer shall not be required to purchase a policy of key-man life insurance on the life of
any Employee, and any such policy purchased by the Employer, and all proceeds thereof, shall
remain at all times available to the Employer’s general creditors.

     4. BENEFICIARY. The Employee has notified or will in the future notify the
Employer of the person or persons entitled to receive payments on the death of the Employee.
For the purposes of this Agreement, such person or persons are herein referred to collectively as
the “beneficiary.” The person whom an Employee designates as his beneficiary for this purpose
must be one of the following: the Employee’s spouse; father, mother, sister, brother, son or
daughter. The beneficiary may also be a legal ward living with and dependent on the Employee

 

 

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at the time of his death. If the Employee dies and has not designated a beneficiary, his
beneficiary shall be his spouse, if living; otherwise, his beneficiary shall be deemed to be his
estate. An Employee’s beneficiary designation may be changed at any time by the Employee
giving written notice to the Employer of such change. The rights of any beneficiary presently or
hereafter designated are subject to any changes made in this Agreement by the Employee and the
Employer.

     5. WITHHOLDING. The Employer shall be permitted to withhold from any
payment to the Employee or his beneficiary hereunder all federal, state or other taxes which may

be required with respect to such payment.

     6. ARBITRATION. In the event that a dispute shall arise with respect to any of the
provisions of this Agreement, either the Employer or the Employee or his beneficiary, as the
case may be, may give written notice to the other stating the claims that said party desires to
arbitrate, and naming an arbitrator. Within ten (10) days after the receipt of such notice, the
party receiving same shall appoint a second arbitrator by written notice to be sent to the party
who requested arbitration. Within ten (10) days after receipt of such notice of appointment of
the second arbitrator, the two (2) arbitrators so appointed shall meet to select a third arbitrator
and shall give written notice of such selection to the Employer and the Employee or his
beneficiary. The decision of a majority of the arbitrators shall be conclusive and binding upon
the Employer and the Employee or his beneficiary. All notices hereunder shall be by registered
mail addressed to the last known address of the party entitled to receive notice. The Employer

 

 

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and the Employee shall each pay their own costs incurred in the arbitration proceeding;
provided, however, that the arbitrators may require that the losing party reimburse the prevailing
party for its costs if it shall be determined that the claim which gave rise to the dispute was
without substantial foundation.

     7. MISCELLANEOUS.

     (a) This Agreement shall be binding upon the parties hereto, their heirs, executors,
administrators, successors and assigns. The Employer agrees that it will not be a party to any
merger, consolidation or reorganization unless and until its obligations hereunder shall be
expressly assumed by its successor or successors.

     (b) 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, or any beneficiary
designated by him, either directly or indirectly, any interest whatsoever in any funds or assets of
the Employer, except the right to receive the payments herein provided.

     (c) This Agreement may be terminated by the Employer at any time that tax or other
laws are enacted or interpreted which result or will result in costs to the Employer significantly
in excess of those contemplated at the time of the execution hereof. In the event of such
termination, the Employer’s sole obligation shall be to pay to the Employee in a lump sum the
amount of his Deferred Compensation Account, including an Interest Equivalent as determined

 

 

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by Section 3(a), as if the effective date of termination of this Agreement were considered to be
the date of termination of the Employee’s employment. Such payment shall be made to the
Employee within ninety (90) days after the effective date of termination of this Agreement.

     (d) This Agreement shall not supersede any contract of employment, whether oral or
written, 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.

     (e) If Moody’s Bond Survey shall cease to publish the Corporate Bond Yield
Averages referred to in Section 3 hereof, a similar average selected by the Board of Directors of
the Employer, in its sole discretion, shall be used.

     (f) This Agreement shall be executed in duplicate, and each executed copy of this
Agreement shall be deemed an original.

     (g) This Agreement shall be construed in all respects under the laws of the State of
Connecticut.

 

 

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, as of the day and year first above written.

	 	 	 
	

	 	THE CONNECTICUT WATER COMPANY
	 
	 	 
	(signed by Thomas R. Marston)

	 	(signed by Michele G. DiAcri, its Corporate
Secretary)

 

 

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Notice of Election to Defer Compensation

     Pursuant to the terms of the Deferred Compensation Agreement (the “Agreement”) by and between
The Connecticut Water Company (the “Company”) and                                         , made as of
the
                     day of                                         , I hereby elect to defer, pursuant to Section 1 thereof, $                      of my bi-weekly salary payable in
connection with the performance of my services as an employee of the Company
beginning January 1,                     . This election shall be effective for calendar years
beginning after the date hereof until the calendar year next beginning after the date on which I
notify the Company to change or terminate future deferrals pursuant to the terms of Section 1 of
the Agreement on a form provided by the Company.

     I understand that this election to defer shall be continued as to the salary which is earned
for each calendar year for which this election to defer is effective until distribution of such
deferred compensation to me upon my termination of services as an employee, or to my beneficiary in
the event of my death, as provided in the Agreement. I also understand that I may change the amount
deferred (including terminating deferrals) with respect to salary earned for calendar years
commencing after my delivery to the Company of a written notice of change, provided such written
notice is delivered to the Company on a form approved by the company at least seven (7) days before
the commencement of such calendar year. Further, I understand that if I terminate deferrals I may
make a new election to again defer my salary pursuant to the Agreement and that any new election to
defer payment of my salary must be made and delivered to the Company as least seven (7) days before
the beginning of the calendar year for which the salary is payable.

     In the event of my death, any payment to which I am entitled under the terms of the Agreement
which has not been made to me at the date of my death shall be distributed to:

	 	 	 	 	 
	Primary Beneficiary(ies):	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Relationship:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Percentage share:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Contingent Beneficiary(ies):	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Relationship:
	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Percentage share:
	 	 	 	 
	

	 	 	 	 

 

 

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     Notwithstanding the foregoing to the contrary, in the event of payment of the “Hypothetical
Death Benefit” pursuant to Section 3(g) of the Agreement, any beneficiary designation made by me in
connection with a key-man life insurance policy on my life shall supersede the beneficiary
designation made hereinabove.

	 	 	 
	 
	 	 
	 

	 	 
	DATE
	 	 

 

 

CONSENT

I,                                                             , consent to (1) Connecticut Water Service, Inc.,
and/or (2) any of its subsidiaries or affiliates, and/or (3) the trustee of a trust agreement
established by any of the foregoing entities, procuring and owning a life insurance
policy or policies on my life during my employment period. I acknowledge that such
life insurance coverage may also be maintained by any such company or by the trustee
of such trust agreement after the date my employment with Connecticut Water Service,
Inc. and/or any of its subsidiaries or affiliates terminates. Such life insurance may exist
in order to assist Connecticut Water Service, Inc. and/or any of its subsidiaries or
affiliates in providing benefits payable to me under one or more non-qualified deferred
compensation plans or agreements in which I participate. I also understand that no
person may retaliate against me for refusing to consent to the issuance of insurance on
my life.

     Dated at      
        
              
          
           
            ,
Connecticut, this      
                day of

                                                                 , 200___.

	 	 	 
	 
	 	 
	 

	 	 
	Witness

	 	Signature
	 
	 	 
	

	 	 
	

	 	Name of Employee
	 
	 	 
	insurance consentEX-10.8.A:

 

Exhibit 10.8a

SECOND AMENDMENT TO

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

     WHEREAS, the Connecticut Water Company (hereinafter referred to as “Employer”) and
Thomas R. Marston (hereinafter referred to as the “Employee”) entered into a Supplement
Executive Retirement Agreement dated as of
(hereinafter referred to as the “Agreement”); and

     WHEREAS, the parties wish to amend the Agreement in accordance with the provisions
of Section 5.a. thereof;

     NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the Agreement is hereby amended effective as of the date first
above written as follows:

     1. The second paragraph of Section 1.a. of the Agreement is deleted and the
following two paragraphs are substituted in lieu thereof:

     “For
purposes of the foregoing, ‘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 include the value of all of the following:
(1) Performance Shares, (2) Cash Units, and (3) Restricted Stock awarded to a Participant
under the Connecticut Water Service, Inc. Performance Stock Program for any year in which
such awards are made, including awards made prior to the date this change in the definition
of Average Earnings is adopted. The value of such awards 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.”

     2. A new Section 1.b. shall be inserted into Section 1 of the Agreement, immediately
following Section 1.a. Sections 1.b. and l.c. shall be re-designated as Sections l.c. and
l.d. respectively. The new Section 1.b. shall read in its entirety as follows:

     “b. Early Retirement. If, upon or after the Employee’s attainment of age 55
and prior to attainment of age 65, the Employee’s employment shall be terminated and he

1

 

Exhibit 10.8a

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). 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.

     For
purposes of the foregoing, ‘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 include the value of all of the following: (1)
Performance Shares, (2) Cash Units, and (3) Restricted Stock awarded to a Participant under the
Connecticut Water Service, Inc. Performance Stock Program for any year in which such awards are
made, including awards made prior to the date this change in the definition of Average Earnings is
adopted. The value of such awards 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.”

     3. The last sentence of the newly designated Section 1.c. (entitled “Disability Benefits”)
is hereby amended by substituting therein the number 62 where the number 65 appears.

     4. The second sentence of Section 2. is hereby amended to read in its entirety as
follows:

     “Such installments shall commence to be paid on the first such day which coincides with or
follows the day upon which the Employee’s benefit under the Retirement Plan shall commence to be
paid; provided, however, that benefits pursuant to Section 1.b. hereof shall commence at such
later date as shall be requested by the Employee and approved by the Committee under the
Retirement Plan, in its sole discretion.”

     5. The second paragraph of Section 2. is hereby. amended by deleting the
reference to “Section 1.a. or 1.b.” therein and substituting in lieu thereof reference to
“Section 1.a., 1.b. or l.c.”

2

 

     6. A new Section 3. shall be inserted into the Agreement, immediately following Section 2.
Existing Sections 3., 4., and 5. shall be re-designated as Sections 4., 5., and 6. respectively.
The new Section 3. shall read in its entirety as follows:

     “3. DEATH BENEFIT. If the Employee has attained age 55 while in service with the
Employer and dies thereafter prior to the commencement of benefits pursuant to this Agreement, 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. 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 is
his beneficiary under the Retirement Plan, or a five years certain and life annuity (as described
in the Retirement Plan) in effect, if his beneficiary is other than his spouse. If the benefit is
determined under a five years certain and life annuity, it shall be paid in an actuarially
equivalent lump sum, as determined by the Committee under the Retirement Plan using the
appropriate factors set forth in the Retirement Plan.

     No other death benefits shall be payable in the event of the Employee’s death prior to the
commencement of benefits hereunder.”

     7. Newly designated Section 6.a. of the Agreement (entitled “Miscellaneous”)
is hereby amended to read in its entirety as follows:

     “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.”

     IN WITNESS WHEREOF, the Employer and the Employee have executed this Amendment as of
December 2, 1004.

	 	 	 
	EMPLOYEE

	 	CONNECTICUT WATER COMPANY
	 
	 	 
	/s/ Thomas R. Marston

	 	BY: /s/ Michele G. DiAcri
	 

	 	 
	Thomas R. Marston

	 	Michele G. DiAcri
	

	 	Corporate Secretary

 

 

Exhibit 10.8a

FIRST AMENDMENT To

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

Effective as of August 1, 1999

     WHEREAS, the Connecticut Water Company (hereinafter referred to as the “Employer”) and
Thomas R. Marston (hereinafter referred to as the “Employee”) entered into a Supplemental
Executive Retirement Agreement dated as of December 2, 2004 (hereinafter referred to as the
“Agreement”); and

     WHEREAS, the parties wish to amend the Agreement in accordance with the provisions of Section
5(a) thereof;

     NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements
contained herein, the Agreement is hereby amended effective as of the date first above written as
follows:

1. The second paragraph of Section 1(a) of the Agreement is amended to read in Its
entirety as follows:

“For purposes of the foregoing, “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.”

	 	 	 
	

	 	CONNECTICUT WATER SERVICE, INC.
	 
	 	 
	/s/ Thomas R. Marston

	 	BY: /s/ Michele G. DiAcri
	 

	 	 
	Thomas R. Marston

	 	Michele G. DiAcri
	

	 	Corporate Secretary
	December 2, 2004

	 	December 6, 2004

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Exhibit 10.8a

SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

     This Agreement, made this 2nd day of December 2004 by and between THE CONNECTICUT WATER
COMPANY (hereinafter referred to as the “Employer”) and Thomas R. Marston (hereinafter referred to
as the “Employee”).

WITNESSETH THAT:

     WHEREAS, the Employee is and will be rendering valuable services to the Employer in his/her
capacity as an executive officer, and

     WHEREAS, the Employer desires to ensure that it will have the benefit of the Employee’s
services until he/she 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/her retirement, disability or death.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein contained, the parties hereto agree as follows:

     1. SUPPLEMENTAL RETIREMENT BENEFIT

     a. Normal or Deferred Retirement. If, upon or after the Employee’s attainment of age
65 and completion of 35 consecutive years of service with Employer, the Employee’s employment shall
be terminated and he/she 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/her 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 benefits hereunder.

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Exhibit 10.8a

     For purposes of the foregoing, “Average Earnings” shall have the meaning set forth in the
Retirement Plan.

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

     b. Disability Benefit. If the Employee’s employment shall be terminated by a
disability such that the Employee is considered eligible for a full disability pension under the
provisions of the Social Security Act, the Employee shall be entitled to receive pursuant to this
Agreement a benefit having a value equal to an annual benefit for his/her life calculated in the
manner set forth above; provided, however, that a reduction factor of .72 shall be applied to such
annual benefit if the Employee’s benefit commencement date precedes age 62 by more than 7 complete
years. If such benefit shall commence to be paid between the ages of 55 and 62 such benefit shall
be reduced by 4% for each complete year by which the date of benefit commencement precedes the
Employee’s attainment of age 65.

     c. Absence of Other Benefits. No benefits shall be paid to the Employee pursuant to
this Agreement other than as provided 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 shall commence to be paid on the first such day which coincides with or
follows the day upon which the Employee’s benefit under the Retirement Plan shall commence to be
paid.

     The normal form in which the benefit hereunder shall be paid is, if the Employee is unmarried,
an annuity for the life of the Employee only and, if the Employee is married, 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. or 1.b. hereof, as
appropriate, the factors for the 50% contingent annuity option set forth in the Retirement Plan.

     Monthly installments of benefits shall cease to be paid as of the first day of the month

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following the date of the Employee’s death, unless a Joint and Survivor Annuity was then in
effect, in which event the installments shall cease as of the first day of the month following the
death of the Employee’s surviving spouse.

     3. 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/her
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/her spouse
nor his/her estate shall be entitled to receive any benefit under this Agreement.

     4. 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 or his estate. Such benefits shall not be subject in any manner
to anticipation, alienation, transfer or assignment by the Employee, his spouse or his estate, and
any attempt to anticipate, alienate, transfer or assign these benefits shall be void. The Employee,
his spouse or his estate shall have only a contractual right against the Employer for the benefits
hereunder. 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 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.

5. 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 or his estate, 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

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Employee.

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

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

	 	 	 
	EMPLOYEE

	 	CONNECTICUT WATER COMPANY
	 
	 	 
	/s/ Thomas R. Marston

	 	/s/ Marshall T. Chiaraluce
	 

	 	 
	Thomas R. Marston

	 	Marshall T. Chiaraluce
	

	 	President, CEO, and Chairman

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