Document:

Nonqualified Employee Stock Purchase Plan

 Exhibit 10.15 
 AMERICAN WATER WORKS COMPANY, INC. 
 AND ITS DESIGNATED SUBSIDIARIES 
 NONQUALIFIED EMPLOYEE STOCK PURCHASE PLAN 

 AMERICAN WATER WORKS COMPANY, INC. 
 AND ITS DESIGNATED SUBSIDIARIES 
 NONQUALIFIED EMPLOYEE STOCK PURCHASE PLAN

 The purpose of this American Water Works Company, Inc. and Its Designated Subsidiaries Nonqualified Employee Stock Purchase Plan
(“Plan”), which was originally adopted on November 17, 2007, and is hereby amended and restated as of March 31, 2008, is to provide Eligible Employees of the American Water Works Company, Inc. (“AWW”) and its
Subsidiaries an opportunity to purchase Stock of AWW. The Board of Directors of AWW believes that employee stock ownership will benefit both the employees and AWW’s shareholders. The Plan is not intended to qualify as an “Employee Stock
Purchase Plan,” as set forth in section 423 of the Code. 
 ARTICLE I 
 DEFINITIONS 
 Section 1.01 “Applicable Holding Period” means,
subject to Section 5.05 below, the six (6) month period following the Purchase Date during which a Participant is required to hold any shares of Stock purchased on his or her behalf pursuant to the Plan; provided, however, in the event of
a Participant’s death, the Applicable Holding Period shall be deemed satisfied as of the Participant’s date of death. 
 Section 1.02 “AWW” means American Water Works Company, Inc. 
 Section 1.03 “Board of
Directors” means the Board of Directors of AWW. 
 Section 1.04 “Code” means the Internal Revenue Code of
1986, as amended. 
 Section 1.05 “Committee” means the committee appointed by the Board of Directors to administer the
Plan, as provided in Section 5.04 below. 
 Section 1.06 “Compensation” means a Participant’s base wages,
exclusive of overtime pay, commissions, bonuses, premium pay, shift differential pay, any compensation reductions made in connection with plans described in sections 401(k), 125 or 132(f)(4) of the Code, and any other extraordinary remuneration, as
determined by the Committee in its sole and absolute discretion. 
 Section 1.07 “Effective Date” shall mean the later
of January 1, 2008 or the date on which the Plan is legally adopted. 
 Section 1.08 “Election Date” means the
first day of the month of each calendar quarter or such other dates as the Committee shall specify. The first Election Date for the Plan shall be the Effective Date. 
 Section 1.09 “Eligible Employee” 
  

	 	(a)	Subject to Section 1.09(b) and Section 1.09(c) below, the term “Eligible Employee” includes each employee, including a part-time employee, of the Employer.

  

	 	(b)	Notwithstanding Section 1.09(a) above, the term “Eligible Employee” shall not include: 

  

	 	(i)	an employee who is classified by the Committee, in its sole and absolute discretion, as a temporary employee or leased employee, 

  

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	 	(ii)	with respect to any Purchase Period, an employee who terminates employment, dies or is determined to be disabled prior to the applicable Purchase Date; 

  

	 	(iii)	an employee who is a member of a collective bargaining unit, 

  

	 	(iv)	unless the Committee specifically designates otherwise as set forth in Section 1.21 below, an employee who is employed by a non-U.S. subsidiary; or 

  

	 	(v)	an employee who owns stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Employer, which shall be determined
by applying rules consistent with those reflected in section 423(b)(3) of the Code, which would otherwise apply if the Plan were intended to be a qualified employee stock purchase plan. 

  

	 	(c)	Notwithstanding anything herein to the contrary, if an employee’s status changes during the Purchase Period, but such change in status is not otherwise discovered or brought to
the attention of the Committee within a reasonable period prior to any Purchase Date, the Committee, in its sole and absolute discretion, may deem such individual to be an Eligible Employee despite the exclusions described in this Section 1.09.

 Section 1.10 “Employer” means AWW and each Subsidiary. 
 Section 1.11 “Market Value” means the last price for the Stock as reported on New York Stock Exchange for the date of reference. If
there was no such price reported for the date of reference, “Market Value” means the last reported price for the Stock on the day immediately preceding the date of reference for which such price was reported or, if there was no such
reported price, the fair market value of a share of Stock as determined by the Committee. 
 Section 1.12 “Maximum Deduction
Amount” means, unless otherwise adjusted by the Committee, the lesser of: 
  

	 	(a)	10% of each payment of Compensation paid to, or on behalf, of a Participant during a Purchase Period, or 

  

	 	(b)	$25,000 per Plan Year. 

 Section 1.13
“Participant” means each Eligible Employee who: 
  

	 	(a)	elects to participate in the Plan in accordance with Article II; 

  

	 	(b)	acknowledges and agrees to abide by the Applicable Holding Period and 

  

	 	(c)	has not otherwise voluntarily elected to cease his or her participation in the Plan and has not otherwise requested and received all funds held on account of the Participant in the
Plan. 

  

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 Section 1.14 “Plan” means the American Water Works Company, Inc. and Its Designated
Subsidiaries Nonqualified Employee Stock Purchase Plan, as set forth herein and as hereafter amended. 
 Section 1.15 “Plan
Year” means each calendar year during which the Plan is in effect. 
 Section 1.16 “Purchase Agreement” means
the instrument prescribed by the Committee pursuant to which an Eligible Employee may enroll as a Participant and subscribe for the purchase of shares of Stock on the terms and conditions offered by AWW. The Purchase Agreement is intended to
evidence AWW’s offer of an option to the Eligible Employee to purchase Stock on the terms and conditions set forth therein and herein; provided, however, in the event of a conflict between the Purchase Agreement and this Plan, the terms of the
Plan shall control. 
 Section 1.17 “Purchase Date” means the last Trading Date of each Purchase Period. 
 Section 1.18 “Purchase Period” means each three (3) month period, or such other period specified by the Committee, beginning
on or after the Effective Date, during which the Participant’s Stock purchase is funded through payroll deduction accumulations (and, if applicable, contributions made pursuant to Section 2.05(c) below). The first Purchase Period shall
begin on the Effective Date and continue until the last Trading Date of the calendar quarter next following the Effective Date. Unless the Committee determines otherwise, each subsequent Purchase Period, after the first Purchase Period, shall begin
on the first day of the calendar quarter next following the preceding Purchase Date and continue until the last Trading Date of the calendar quarter in which such Purchase Period began. 
 Section 1.19 “Purchase Price” means the purchase price for shares of Stock purchased under the Plan, determined as set forth in
Section 3.01 below. 
 Section 1.20 “Stock” means the common stock, par value of $.01 per share, of AWW.

 Section 1.21 “Subsidiary” 
  

	 	(a)	The term “Subsidiary” means any present or future corporation that: 

  

	 	(i)	constitutes a “subsidiary corporation” of AWW as that term is defined in section 424 of the Code and 

  

	 	(ii)	is designated as a participating entity in the Plan by the Committee. 

  

	 	(b)	Unless the Committee specifically designates otherwise, a non-U.S. subsidiary shall not be considered a Subsidiary for purposes of the Plan, and employees of such a subsidiary shall
not be Eligible Employees. 

 Section 1.22 “Trading Date” means a day on which the New York Stock
Exchange is open for trading. 
  

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 ARTICLE II 
 PARTICIPATION 
 Section 2.01 Initial Participation. An Eligible Employee may elect to
participate in the Plan by properly executing a Purchase Agreement and filing such Purchase Agreement with the Committee, or its delegate, at such time in advance of the Election Date as the Committee shall prescribe. 
 Section 2.02 Continuation of Participation. 
  

	 	(a)	The Purchase Agreement shall remain in effect until it is modified through discontinuance of participation under Section 2.03 below or otherwise changed under Section 2.05
below. 

  

	 	(b)	A Participant who is on a leave of absence approved by an Employer may continue to participate in the Plan during the leave of absence to the extent such Participant continues to
receive Compensation, which is sufficient to satisfy the payroll deductions and any other legally required deductions or withholding obligations, as the Committee may determine in its sole and absolute discretion. 

 Section 2.03 Discontinuance of Participation. 
  

	 	(a)	To the extent legally permissible, a Participant may voluntarily cease his or her participation in the Plan and stop payroll deductions at any time by filing a notice of cessation
of participation on such form and at such time in advance of the Purchase Date as the Committee shall prescribe. A Participant who ceases contributions during a Purchase Period may not make additional contributions to the Plan during the Purchase
Period and may request payment of any funds held for the Participant under the Plan on such form and at such time in advance of the Purchase Date as the Committee shall prescribe. Any funds remaining in the Participant’s account on the Purchase
Date shall be used to purchase Stock pursuant to Section 3.04 below, if the Participant is then an Eligible Employee. 

  

	 	(b)	Notwithstanding subsection Section 2.03, if a Participant ceases to be an Eligible Employee, his or her participation in the Plan shall automatically cease and no further
purchase of Stock shall be made for the Participant. Any funds held for the Participant under the Plan shall be distributed to the Participant. 

 Section 2.04 Readmission to Participation. 
  

	 	(a)	Any Eligible Employee who: 

  

	 	(i)	was previously a Participant; 

  

	 	(ii)	discontinued participation (whether by cessation of eligibility or otherwise); and 

  

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	 	(iii)	wishes to be reinstated as a Participant, 

 may again
become a Participant by executing and filing with the Committee a new Purchase Agreement. 
  

	 	(b)	Reinstatement as a Participant shall be effective as of the next Election Date, provided the Participant is an Eligible Employee and the Participant files a new Purchase Agreement
with the Committee at such time in advance of the Election Date as the Committee shall prescribe. 

 Section 2.05
Payroll Deductions and Deposits. 
  

	 	(a)	Each Participant shall authorize after-tax payroll deductions from his or her Compensation for the purpose of funding the purchase of Stock pursuant to his or her Purchase
Agreement. In the Purchase Agreement, each Participant shall authorize the withholding of a percentage of each payment of Compensation during the Purchase Period, which shall be in one percent (1%) increments and, together with his or her
contributions toward the purchase of Stock pursuant to subsection (c) below, may not exceed the Maximum Deduction Amount. 

  

	 	(b)	To the extent legally permissible, a Participant may change the deduction to any permissible level, as permitted by the Committee in its sole and absolute discretion, as of any time
prior to an Election Date. A change shall be made by filing with the Committee a new Purchase Agreement, which shall become effective as soon as administratively practicable following receipt by the Committee or its delegate.

  

	 	(c)	The Committee may allow Participants to deposit funds with AWW to be used for the purpose of purchasing Stock pursuant to their Purchase Agreements, in addition to payroll
deductions pursuant to Section 2.05(a) above; provided, however: 

  

	 	(i)	the total amount that a Participant may contribute to the Plan during a Purchase Period (through payroll deductions and deposits) may not exceed the Maximum Deduction Amount, and

  

	 	(ii)	the deposit of funds by a Participant will only be permitted if the Participant designates the timing and amount to be deposited on an executed Purchase Agreement that is filed with
the Committee, or its delegate, at such time in advance of the Election Date as the Committee shall prescribe. 

 Section 2.06 Participant Rights and Privileges. Notwithstanding anything herein to the contrary, all Participants shall have the same rights and privileges within the meaning of Section 423(b)(5) of the Code. 
  

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 ARTICLE III 
 STOCK PURCHASE AND DISTRIBUTION 
 Section 3.01 Purchase Price of Shares. Unless the Committee
determines otherwise, the Purchase Price per share of the Stock to be sold to Participants under the Plan shall be the lesser of: 
  

	 	(a)	90% of the Market Value of such share on the Purchase Date, or 

  

	 	(b)	90% of the Market Value of such share on the first Trading Date of the Purchase Period. 

 Section 3.02 Exercise of Purchase Privilege. 
  

	 	(a)	As of the first day of each Purchase Period, each Participant shall be granted an option to purchase shares of Stock at the Purchase Price specified in Section 3.01 above. The
option shall continue in effect through the Purchase Date for the Purchase Period. Subject to the provisions of Section 3.04 below, on each Purchase Date, the Participant shall automatically be deemed to have exercised his or her option to
purchase shares of Stock, unless he or she notifies the Committee or its delegate, in such manner and at such time in advance of the Purchase Date as the Committee shall prescribe, of his or her desire to forfeit such option and subject to any
restrictions that may be imposed by the Committee, to receive a refund of any outstanding amounts that have been deducted pursuant to the Participant’s Purchase Agreement or contributed toward the purchase of Stock pursuant to
Section 2.05(c) above. 

  

	 	(b)	Subject to the provisions of Section 3.02 above and Section 3.04 below, there shall be purchased for the Participant on each Purchase Date, at the Purchase Price for the
Purchase Period, the largest number of shares of Stock, including fractional shares thereof, as can be purchased with the amounts deducted from the Participant’s Compensation, or contributed toward the purchase of Stock pursuant to
Section 2.05(c) above, during the Purchase Period. 

  

	 	(c)	Notwithstanding anything herein to the contrary, in the unlikely event or limited instances that any amounts that are attributable to a Participant’s deductions or
contributions remain after the purchase of shares of Stock on a Purchase Date, such amounts shall be returned to the Participant, in accordance with Section 3.04(c) below, as soon as administratively practicable. 

 Section 3.03 Reservation of Shares. There shall be two million (2,000,000) shares of Stock reserved for issuance or transfer under the
Plan, subject to adjustment in accordance with Section 4.02 below; provided, however, the Board, acting in its sole and absolute discretion, may increase the number of shares of Stock available for issuance or transfer under the Plan, subject
to adjustment in accordance with Section 4.02 below, of up to two million (2,000,000) shares of Stock annually. The aggregate number of shares of Stock that may be purchased under the Plan shall not exceed the number of shares of Stock
reserved under the Plan. 
  

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 Section 3.04 Limitation on Shares to Be Purchased. 
  

	 	(a)	Subject to Section 3.04(a)(iii) below, the maximum number of shares of Stock that may be purchased for each Participant on a Purchase Date is the least of:

  

	 	(i)	the number of shares of Stock that can be purchased by applying the full balance of the Participant’s deducted or deposited funds to the purchase of shares of Stock at the
Purchase Price; 

  

	 	(ii)	the Participant’s proportionate part of the maximum number of shares of Stock available under the Plan, as provided in Section 3.03 and Section 4.01(a) below; or

  

	 	(iii)	five thousand (5,000) shares of Stock, subject to adjustment as described in Section 4.02 below. 

  

	 	(b)	Notwithstanding Section 3.04(a) above, before the beginning of a Purchase Period, the Committee, in its sole and absolute discretion, may increase or decrease the maximum share
limit for the Purchase Period and subsequent Purchase Periods. The adjusted maximum share limit shall continue in effect until again adjusted by the Committee. 

  

	 	(c)	Any amounts deducted from a Participant’s Compensation that cannot be applied to the purchase of Stock on a Purchase Date by reason of the foregoing limitations described in
Section 3.04(a) above, shall be returned to the Participant, as soon as administratively practicable. 

 Section 3.05
Payment for Stock. The Purchase Price for all shares of Stock purchased by a Participant under the Plan shall be paid out of the Participant’s authorized payroll deductions (and any deposits made by a Participant pursuant to
Section 2.05(c) above, if permitted by the Committee). All funds received or held by AWW under the Plan are general assets of AWW, shall be held free of any trust requirement or other restriction, and may be used for any corporate purpose.

 Section 3.06 Share Ownership; Issuance of Certificates. 
  

	 	(a)	The shares of Stock purchased by a Participant on a Purchase Date shall, for all purposes, be deemed to have been issued or sold at the close of business on the Purchase Date. Prior
to that time, none of the rights or privileges of a shareholder of AWW shall inure to the Participant with respect to such shares of Stock. All the shares of Stock purchased under the Plan shall be delivered by AWW in a manner as determined by the
Committee following the Participant’s satisfaction of the Applicable Holding Period. 

  

	 	(b)	The Committee, in its sole discretion, may determine that shares of Stock shall be delivered by: 

  

	 	(i)	issuing and delivering the number of shares of Stock purchased to a firm which is a member of the National Association of Securities Dealers, as selected by the Committee from time
to time, which shares shall be maintained by such firm in a separate brokerage account for each Participant, or 

  

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	 	(ii)	issuing and delivering the number of shares of Stock purchased by Participants to a bank or trust company or affiliate thereof, as selected by the Committee from time to time, which
shares may be held by such bank or trust company or affiliate in street name, but with a separate account maintained by such entity for each Participant reflecting such Participant’s share interests in the Stock. 

  

	 	(c)	Each account described in Section 3.06(b) above shall be in the name of the Participant. 

 Section 3.07 Distribution of Shares or Resale of Stock. 
  

	 	(a)	A Participant may request a distribution of shares of Stock purchased for the Participant under the Plan or order the sale of such shares following the Participant’s
satisfaction of the Applicable Holding Period, by making a request in such form and at such time as the Committee shall prescribe. 

  

	 	(b)	If a Participant terminates his or her employment with the Employer or otherwise ceases to be an Eligible Employee, following the Participant’s satisfaction of the Applicable
Holding Period, the Participant shall receive a distribution of his or her shares of Stock held in any shareholder account established pursuant to Section 3.06(b) above, which shall be effectuated by the Committee in a manner that it deems
reasonable and appropriate, as determined by the Committee in its sole and absolute discretion, or, in lieu of the receipt of shares of Stock, the Participant may alternatively elect to instead have the shares of Stock sold, in accordance with such
procedures as the Committee shall prescribe. 

  

	 	(c)	If a Participant is to receive a distribution of shares of Stock, or if shares are to be sold, the distribution or sale shall be made in shares of Stock. Any brokerage commissions
resulting from a sale of Stock shall be deducted from amounts payable to the Participant. 

 ARTICLE IV 
 SPECIAL ADJUSTMENTS 
 Section 4.01
Shares Unavailable. If, on any Purchase Date, the aggregate funds available for the purchase of Stock would otherwise permit the purchase of a number of shares Stock in excess of the number then available for purchase under the Plan, the
following adjustments shall be made: 
  

	 	(a)	The number of shares of Stock that would otherwise be purchased by each Participant shall be proportionately reduced on the Purchase Date in order to eliminate such excess; and

  

	 	(b)	The Plan shall automatically terminate immediately after the Purchase Date as of which the supply of available shares is exhausted, unless the Board of Directors determines
otherwise. 

  

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 Section 4.02 Anti-Dilution Provisions. The aggregate number of shares of Stock reserved for
purchase under the Plan, as provided in Section 3.03 above, the maximum number of shares that may be purchased by a Participant as provided in Section 3.04 above, and the calculation of the Purchase Price per share may be appropriately
adjusted by the Committee to reflect any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares or other capital adjustment, the payment of a stock dividend, or other increase or decrease
in the shares, if effected without receipt of consideration by AWW. 
 Section 4.03 Effect of Certain Transactions. Subject to
any required action by the shareholders, if AWW shall be the surviving corporation in any merger or consolidation, any offering hereunder shall continue to pertain to and apply to the shares of stock of AWW. However, in the event of a dissolution or
liquidation of AWW, or a merger or consolidation in which AWW is not the surviving corporation, the Plan and any offering hereunder shall terminate upon the effective date of such dissolution, liquidation, merger or consolidation, unless the Board
of Directors determines otherwise, and the balance of any amounts deducted from a Participant’s Compensation (or deposited pursuant to Section 2.05(c) above) which have not by such time been applied to the purchase of Stock shall be
returned to the Participant, as soon as reasonably practicable. 
 ARTICLE V 
 MISCELLANEOUS 
 Section 5.01 Non-Alienation. Except as set forth below, the
right to purchase shares of Stock under the Plan is personal to the Participant, is exercisable only by the Participant during the Participant’s lifetime and may not be assigned or otherwise transferred by the Participant. If a Participant
dies, unless the executor, administrator or other personal representative of the deceased Participant directs otherwise, any amounts previously deducted from the Participant’s Compensation (or deposited pursuant to Section 2.05(c) above
before the Participant’s death) during the Purchase Period in which the Participant dies shall be used to purchase Stock on the Purchase Date for the Purchase Period. After that Purchase Date, there shall be delivered to the executor or
administrator or other personal representative of the deceased Participant all shares of Stock and such residual amounts as may remain to the Participant’s credit under the Plan. 
 Section 5.02 Administrative Costs. AWW shall pay the administrative expenses associated with the operation of the Plan (other than brokerage
commissions resulting from sales of Stock directed by Participants). 
 Section 5.03 No Interest. No interest shall be payable
with respect to amounts withheld or deposited under the Plan. 
 Section 5.04 Committee. The Board of Directors shall appoint the
Committee, which shall have the express discretionary authority and power to administer the Plan and to make, adopt, construe, and enforce rules and regulations not inconsistent with the provisions of the Plan. The Committee shall adopt and
prescribe the contents of all forms required in connection with the administration of the Plan, including, but not limited to, the Purchase Agreement, payroll deduction authorizations, requests for distribution of shares, and all other notices
required hereunder. The Committee shall have the fullest discretion permissible under law in the discharge of its duties. The Committee’s interpretations and decisions with respect to the Plan shall be final and conclusive. 
  

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 Section 5.05 Withholding of Taxes; Notification of Transfer. All acquisitions and sales of
Stock under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements if the Internal Revenue Service or other taxing authority requires such withholding. AWW may require that Participants pay to
AWW (or make other arrangements satisfactory to AWW for the payment of) the amount of any Federal, state or local taxes that AWW is required to withhold with respect to the purchase of Stock or the sale of Stock acquired under the Plan, or instead
deduct from the Participant’s wages or other compensation the amount of any withholding taxes due with respect to the purchase of Stock or the sale of Stock acquired under the Plan. 
 Section 5.06 Amendment of the Plan. The Board of Directors may, at any time and from time to time, amend the Plan in any respect, except that
any amendment that is required to be approved by the shareholders shall be submitted to the shareholders of AWW for approval. 
 Section 5.07 Expiration and Termination of the Plan. The Plan shall continue in effect for ten years from the Effective Date, unless terminated prior to that date pursuant to the provisions of the Plan or pursuant to action by
the Board of Directors. The Board of Directors shall have the right to terminate the Plan at any time without prior notice to any Participant and without liability to any Participant. Upon the expiration or termination of the Plan, the balance, if
any, then standing to the credit of each Participant from amounts deducted from the Participant’s Compensation or deposited by the Participant which has not, by such time, been applied to the purchase of Stock shall be refunded to the
Participant. 
 Section 5.08 No Employment Rights. Participation in the Plan shall not give an employee any right to continue in
the employment of an Employer, and shall not affect the right of the Employer to terminate the employee’s employment at any time, with or without cause. 
 Section 5.09 Repurchase of Stock. AWW shall not be required to purchase or repurchase from any Participant any of the shares of Stock that the Participant acquires under the Plan. 
 Section 5.10 Notice. A Purchase Agreement and any notice that a Participant files pursuant to the Plan shall be on a form prescribed by the
Committee and shall be effective only when received by the Committee or its delegate. Delivery of such forms may be made by hand or by certified mail, sent postage prepaid, to AWW’s Senior Vice President of Human Resources, or such other
address as the Committee may designate. Delivery by any other mechanism shall be deemed effective at the option and discretion of the Committee. 
 Section 5.11 Government Regulation. AWW’s obligation to sell and to deliver the Stock under the Plan is at all times subject to all approvals of any governmental authority required in connection with the authorization,
issuance, sale or delivery of such Stock. 
 Section 5.12 Internal Revenue Code and ERISA Considerations. The Plan is neither
intended to constitute an “employee stock purchase plan” within the meaning of section 423 of the Code nor intended to be construed as constituting an “employee benefit plan,” within the meaning of section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended. 
  

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 Section 5.13 Headings, Captions, Gender. The headings and captions herein are for
convenience of reference only and shall not be considered as part of the text. The masculine shall include the feminine, and vice versa. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require. As the context may require, the singular may read as the plural and the plural as the singular. 
 Section 5.14 Severability of Provisions, Prevailing Law. The provisions of the Plan shall be deemed severable. In the event any such provision is determined to be unlawful or unenforceable by a court of
competent jurisdiction or by reason of a change in an applicable statute, the Plan shall continue to exist as though such provision had never been included therein (or, in the case of a change in an applicable statute, had been deleted as of the
date of such change). The Plan shall be governed by the laws of the State of New Jersey to the extent such laws are not in conflict with, or superseded by, federal law. 
  

 12American Water Works Company, Inc. 2007 Omnibus Equity Compensation Plan

 Exhibit 10.22 
 AMERICAN WATER WORKS COMPANY, INC. 
 2007 OMNIBUS EQUITY COMPENSATION PLAN 

 AMERICAN WATER WORKS COMPANY, INC. 
 2007 OMNIBUS EQUITY COMPENSATION PLAN 
  

	 	1.	Purpose 

 The purpose of the American Water
Works Company, Inc. 2007 Omnibus Equity Compensation Plan (the “Plan”) is to provide (i) designated employees of American Water Works Company, Inc. (the “Company”) and its subsidiaries and (ii) non-employee members of
the board of directors of the Company with the opportunity to receive grants of stock options, stock units, stock awards, stock appreciation rights and other stock-based awards. The Company believes that the Plan will encourage the participants to
contribute materially to the growth of the Company, thereby benefiting the Company’s shareholders, and will align the economic interests of the participants with those of the shareholders. 
  

	 	2.	Definitions 

 Whenever used in this Plan, the
following terms will have the respective meanings set forth below: 
 (a) “Board” means the Company’s Board of
Directors. 
 (b) “Change of Control” shall be deemed to have occurred if: 
 (i) Any “person” (as such term is used in sections 13(d) and 14(d) of the Exchange Act) becomes a “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur
as a result of (A) a transaction in which the Company becomes a subsidiary of another corporation and in which the shareholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction,
shares entitling such shareholders to more than 50% of all votes to which all shareholders of the parent corporation would be entitled in the election of directors, (B) the initial public offering of the Company Stock, or (C) any
subsequent offering of shares of the Company Stock; 
 (ii) The consummation of (A) a merger or consolidation of the Company with
another corporation where the shareholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such shareholders to more than 50% of all votes
to which all shareholders of the surviving corporation would be entitled in the election of directors, (B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the
Company; or 
 (iii) After the Effective Date, directors are elected such that a majority of the members of the Board shall have been members
of the Board for less than one year, unless the 

 
election or nomination for election of each new director who was not a director at the beginning of such one-year period was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of such period. 
 Notwithstanding the foregoing, the Committee may
provide for a different definition of a “Change of Control” in a Grant Agreement if such Grant is subject to the requirements of section 409A of the Code and the Grant will become payable on a Change of Control. 
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
 (d) “Committee” means (i) with respect to Grants to Employees, the Compensation Committee of the Board or another committee
appointed by the Board to administer the Plan, (ii) with respect to Grants made to Non-Employee Directors, the Board, and (iii) with respect to Grants that are intended to be “qualified performance-based compensation” under
section 162(m) of the Code, a committee that consists of two or more persons appointed by the Board, all of whom shall be “outside directors” as defined under section 162(m) of the Code and related Treasury regulations.

 (e) “Company” means American Water Works Company, Inc. and any successor corporation. 
 (f) “Company Stock” means the common stock of the Company, par value $0.01 per share. 
 (g) “Dividend Equivalent” means an amount calculated with respect to a Stock Unit, which is determined by multiplying the number of
shares of Company Stock subject to the Stock Unit by the per-share cash dividend, or the per-share fair market value (as determined by the Committee) of any dividend in consideration other than cash, paid by the Company on its Company Stock. If
interest is credited on accumulated dividend equivalents, the term “Dividend Equivalent” shall include the accrued interest. 
 (h)
“Effective Date” of the Plan shall mean the day immediately preceding the date of the Underwriting Agreement is executed and the Company Stock is priced for the initial public offering of such Company Stock. 
 (i) “Employee” means an employee of the Employer (including an officer or director who is also an employee), but excluding any person
who is classified by the Employer as a “contractor” or “consultant,” no matter how characterized by the Internal Revenue Service, other governmental agency or a court. Any change of characterization of an individual by the
Internal Revenue Service or any court or government agency shall have no effect upon the classification of an individual as an Employee for purposes of this Plan, unless the Committee determines otherwise. 
 (j) “Employer” means the Company and its subsidiaries. 
 (k) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  

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 (l) “Exercise Price” means the per share price at which shares of Company Stock may be
purchased under an Option, as designated by the Committee. 
 (m) “Fair Market Value” of Company Stock means, unless the
Committee determines otherwise with respect to a particular Grant, (i) if the principal trading market for the Company Stock is a national securities exchange, the last reported sale price of Company Stock on the relevant date or (if there were
no trades on that date) the latest preceding date upon which a sale was reported, (ii) if the Company Stock is not principally traded on such exchange, the mean between the last reported “bid” and “asked” prices of Company
Stock on the relevant date, as reported on the OTC Bulletin Board, or (iii) if the Company Stock is not publicly traded or, if publicly traded, is not so reported, the Fair Market Value per share shall be as determined by the Committee.

 (n) “Grant” means an Option, Stock Unit, Stock Award, SAR or Other Stock-Based Award granted under the Plan. 

(o) “Grant Agreement” means the written instrument that sets forth the terms and conditions of a Grant, including all amendments
thereto. 
 (p) “Incentive Stock Option” means an Option that is intended to meet the requirements of an incentive stock
option under section 422 of the Code. 
 (q) “Non-Employee Director” means a member of the Board who is not an Employee.

 (r) “Nonqualified Stock Option” means an Option that is not intended to be taxed as an incentive stock option under
section 422 of the Code. 
 (s) “1933 Act” means the Securities Act of 1933, as amended. 
 (t) “Option” means an option to purchase shares of Company Stock, as described in Section 7. 
 (u) “Other Stock-Based Award” means a grant that is based on, measured by or payable in Company Stock (other than an Option, Stock Unit,
Stock Award or SAR), as described in Section 11. 
 (v) “Participant” means an Employee or Non-Employee Director
designated by the Committee to participate in the Plan. 
 (w) “Plan” means this American Water Works Company, Inc. 2007
Omnibus Equity Compensation Plan, as may be amended from time to time. 
 (x) “SAR” means a stock appreciation right as
described in Section 10. 
 (y) “Stock Award” means an award of Company Stock as described in Section 9.

  

 3 

 (z) “Stock Unit” means an award of a phantom unit representing a share of Company Stock,
as described in Section 8. 
 (aa) “Underwriting Agreement” means the agreement between the Company and the underwriter
or underwriters managing the initial public offering of the Company Stock. 
  

	 	3.	Administration 

 (a) Committee. The
Plan shall be administered and interpreted by the Committee. Ministerial functions may be performed by an administrative committee comprised of Company employees appointed by the Committee. 
 (b) Committee Authority. The Committee shall have the sole authority to (i) determine the Participants to whom Grants shall be made under the
Plan, (ii) determine the type, size and terms and conditions of the Grants to be made to each such Participant, (iii) determine the time when the Grants will be made and the duration of any applicable exercise or restriction period,
including the criteria for exercisability and the acceleration of exercisability, (iv) amend the terms and conditions of any previously issued Grant, subject to the provisions of Section 19 below, and (v) deal with any other matters
arising under the Plan. 
 (c) Committee Determinations. The Committee shall have full power and express discretionary authority to
administer and interpret the Plan, to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the Plan and for the conduct of its business as it deems necessary or advisable, in its sole
discretion. The Committee’s interpretations of the Plan and all determinations made by the Committee pursuant to the powers vested in it hereunder shall be conclusive and binding on all persons having any interest in the Plan or in any awards
granted hereunder. All powers of the Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated
Participants. 
  

	 	4.	Grants 

 (a) Grants under the Plan may
consist of Options as described in Section 7, Stock Units as described in Section 8, Stock Awards as described in Section 9, SARs as described in Section 10 and Other Stock-Based Awards as described in Section 11. All Grants
shall be subject to such terms and conditions as the Committee deems appropriate and as are specified in writing by the Committee to the Participant in the Grant Agreement. 
 (b) All Grants shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Grant, that all decisions and
determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest under such Grant. Grants under a particular Section of the Plan need not be uniform as among
the Participants. 
  

 4 

	 	5.	Shares Subject to the Plan 

 (a) Shares
Authorized. The total aggregate number of shares of Company Stock that may be issued under the Plan is 6,000,000 shares, subject to adjustment as described in subsection (d) below. 
 (b) Source of Shares; Share Counting. Shares issued under the Plan may be authorized but unissued shares of Company Stock or reacquired shares of
Company Stock, including shares purchased by the Company on the open market for purposes of the Plan. If and to the extent Options or SARs granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having
been exercised, and if and to the extent that any Stock Awards, Stock Units, or Other Stock-Based Awards are forfeited or terminated, or otherwise are not paid in full, the shares reserved for such Grants shall again be available for purposes of the
Plan. Shares of Stock surrendered in payment of the Exercise Price of an Option, and shares withheld or surrendered for payment of taxes, shall not be available for re-issuance under the Plan. If SARs are granted, the full number of shares subject
to the SARs shall be considered issued under the Plan, without regard to the number of shares issued upon exercise of the SARs and without regard to any cash settlement of the SARs. To the extent that a Grant of Stock Units is designated in the
Grant Agreement to be paid in cash, and not in shares of Company Stock, such Grants shall not count against the share limits in subsection (a). 
 (c) Individual Limits. All Grants under the Plan shall be expressed in shares of Company Stock. The maximum aggregate number of shares of Company Stock with respect to which all Grants may be made under the Plan to any individual
during any calendar year shall be 500,000 shares, subject to adjustment as described in subsection (d) below. The individual limits of this subsection (c) shall apply without regard to whether the Grants are to be paid in Company Stock or
cash. All cash payments (other than with respect to Dividend Equivalents) shall equal the Fair Market Value of the shares of Company Stock to which the cash payments relate. A Participant may not accrue Dividend Equivalents during any calendar year
in excess of $750,000. 
 (d) Adjustments. If there is any change in the number or kind of shares of Company Stock outstanding
(i) by reason of a stock dividend, spinoff, recapitalization, stock split, or combination or exchange of shares, (ii) by reason of a merger, reorganization or consolidation, (iii) by reason of a reclassification or change in par
value, or (iv) by reason of any other extraordinary or unusual event affecting the outstanding Company Stock as a class without the Company’s receipt of consideration, or if the value of outstanding shares of Company Stock is substantially
reduced as a result of a spinoff or the Company’s payment of an extraordinary dividend or distribution, the maximum number of shares of Company Stock available for issuance under the Plan, the maximum number of shares of Company Stock for which
any individual may receive Grants in any year, the kind and number of shares covered by outstanding Grants, the kind and number of shares issued and to be issued under the Plan, and the price per share or the applicable market value of such Grants
shall be equitably adjusted by the Committee, in such manner as the Committee deems appropriate, to reflect any increase or decrease in the number of, or change in the kind or value of, the issued shares of Company Stock to preclude, to the extent
practicable, the enlargement or dilution of rights and benefits under the 

  

 5 

 
Plan and such outstanding Grants; provided, however, that any fractional shares resulting from such adjustment shall be eliminated. In addition, in the event
of a Change of Control of the Company, the provisions of Section 16 of the Plan shall apply. Any adjustments to outstanding Grants shall be consistent with section 409A or 422 of the Code, to the extent applicable. Any adjustments determined by
the Committee shall be final, binding and conclusive. 
  

	 	6.	Eligibility for Participation 

 (a)
Eligible Persons. All Employees and Non-Employee Directors shall be eligible to participate in the Plan. 
 (b) Selection of
Participants. The Committee shall select the Employees and Non-Employee Directors to receive Grants and shall determine the number of shares of Company Stock subject to each Grant. 
  

	 	7.	Options 

 (a) General
Requirements. The Committee may grant Options to an Employee or Non-Employee Director upon such terms and conditions as the Committee deems appropriate under this Section 7. The Committee shall determine the number of shares of Company
Stock that will be subject to each Grant of Options to Employees and Non-Employee Directors.  
 (b) Type of Option, Price and
Term. 
 (i) The Committee may grant Incentive Stock Options or Nonqualified Stock Options or any combination of the two, all in
accordance with the terms and conditions set forth herein. Incentive Stock Options may be granted only to Employees of the Company or its parents or subsidiaries, as defined in section 424 of the Code. Nonqualified Stock Options may be granted to
Employees or Non-Employee Directors. 
 (ii) The Exercise Price of Company Stock subject to an Option shall be determined by the Committee
and may be equal to or greater than the Fair Market Value of a share of Company Stock on the date the Option is granted. However, an Incentive Stock Option may not be granted to an Employee who, at the time of grant, owns stock possessing more than
10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary, as defined in section 424 of the Code, unless the Exercise Price per share is not less than 110% of the Fair Market Value of the Company Stock
on the date of grant. 
 (iii) The Committee shall determine the term of each Option, which shall not exceed ten years from the date of
grant. However, an Incentive Stock Option that is granted to an Employee who, at the time of grant, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary, as defined
in section 424 of the Code, may not have a term that exceeds five years from the date of grant. 
  

 6 

 (c) Exercisability of Options. 
 (i) Options shall become exercisable in accordance with such terms and conditions as may be determined by the Committee and specified in the Grant
Agreement. The Committee may grant Options that are subject to achievement of performance goals or other conditions. The Committee may accelerate the exercisability of any or all outstanding Options at any time for any reason. 
 (ii) The Committee may provide in a Grant Agreement that the Participant may elect to exercise part or all of an Option before it otherwise has become
exercisable. Any shares so purchased shall be restricted shares and shall be subject to a repurchase right in favor of the Company during a specified restriction period, with the repurchase price equal to the lesser of (A) the Exercise Price or
(B) the Fair Market Value of such shares at the time of repurchase, or such other restrictions as the Committee deems appropriate. 
 (iii) Options granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such Options may become exercisable,
as determined by the Committee, upon the Participant’s death, disability or retirement, or upon a Change of Control or other circumstances permitted by applicable regulations). 
 (d) Termination of Employment or Service. Except as provided in the Grant Agreement, an Option may only be exercised while the Participant is
employed as an Employee or providing service as a Non-Employee Director. The Committee shall determine in the Grant Agreement under what circumstances and during what time periods a Participant may exercise an Option after termination of employment
or service. 
 (e) Exercise of Options. A Participant may exercise an Option that has become exercisable, in whole or in part, by
delivering a notice of exercise to the Company. The Participant shall pay the Exercise Price for the Option (i) in cash, (ii) if permitted by the Committee, by delivering shares of Company Stock owned by the Participant and having a Fair
Market Value on the date of exercise equal to the Exercise Price or by attestation to ownership of shares of Company Stock having an aggregate Fair Market Value on the date of exercise equal to the Exercise Price, (iii) by payment through a
broker in accordance with procedures permitted by Regulation T of the Federal Reserve Board, or (iv) by such other method as the Committee may approve, to the extent permitted by applicable law. Shares of Company Stock used to exercise an
Option shall have been held by the Participant for the requisite period of time to avoid adverse accounting consequences to the Company with respect to the Option. Payment for the shares pursuant to the Option, and any required withholding taxes,
must be received by the time specified by the Committee depending on the type of payment being made, but in all cases prior to the issuance of the Company Stock. 
 (f) Limits on Incentive Stock Options. Each Incentive Stock Option shall provide that, if the aggregate Fair Market Value of the stock on the date of the grant with respect to which Incentive Stock Options are
exercisable for the first time by a Participant during any calendar year, under the Plan or any other stock option plan of the Company or a parent or 

  

 7 

 
subsidiary, as defined in section 424 of the Code, exceeds $100,000, then the Option, as to the excess, shall be treated as a Nonqualified Stock Option. An
Incentive Stock Option shall not be granted to any person who is not an Employee of the Company or a parent or subsidiary, as defined in section 424 of the Code. 
  

	 	8.	Stock Units 

 (a) General
Requirements. The Committee may grant Stock Units to an Employee or Non-Employee Director, upon such terms and conditions as the Committee deems appropriate under this Section 8. Each Stock Unit shall represent the right of the Participant
to receive a share of Company Stock or an amount based on the value of a share of Company Stock. All Stock Units shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. 
 (b) Terms of Stock Units. The Committee may grant Stock Units that are payable on terms and conditions determined by the Committee, which may
include payment based on achievement of performance goals. Stock Units may be paid at the end of a specified vesting or performance period, or payment may be deferred to a date authorized by the Committee. The Committee shall determine the number of
Stock Units to be granted and the requirements applicable to such Stock Units. 
 (c) Payment With Respect to Stock Units. Payment
with respect to Stock Units shall be made in cash, in Company Stock, or in a combination of the two, as determined by the Committee. The Grant Agreement shall specify the maximum number of shares that can be issued under the Stock Units. 

(d) Requirement of Employment or Service. The Committee shall determine in the Grant Agreement under what circumstances a Participant may
retain Stock Units after termination of the Participant’s employment or service, and the circumstances under which Stock Units may be forfeited. 
 (e) Dividend Equivalents. The Committee may grant Dividend Equivalents in connection with Stock Units, under such terms and conditions as the Committee deems appropriate. Dividend Equivalents may be paid to
Participants currently or may be deferred. All Dividend Equivalents that are not paid currently shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. Dividend Equivalents may be accrued as a cash
obligation, or may be converted to additional Stock Units for the Participant, and deferred Dividend Equivalents may accrue interest, all as determined by the Committee. The Committee may provide that Dividend Equivalents shall be payable based on
the achievement of specific performance goals. Dividend Equivalents may be payable in cash or shares of Company Stock or in a combination of the two, as determined by the Committee. 
  

	 	9.	Stock Awards 

 (a) General
Requirements. The Committee may issue shares of Company Stock to an Employee or Non-Employee Director under a Stock Award, upon such terms and conditions as the Committee deems appropriate under this Section 9. Shares of Company Stock
issued 

  

 8 

 
pursuant to Stock Awards may be issued for cash consideration or for no cash consideration, and subject to restrictions or no restrictions, as determined by
the Committee. The Committee may establish conditions under which restrictions on Stock Awards shall lapse over a period of time or according to such other criteria as the Committee deems appropriate, including restrictions based upon the
achievement of specific performance goals. The Committee shall determine the number of shares of Company Stock to be issued pursuant to a Stock Award. 
 (b) Requirement of Employment or Service. The Committee shall determine in the Grant Agreement under what circumstances a Participant may retain Stock Awards after termination of the Participant’s
employment or service, and the circumstances under which Stock Awards may be forfeited. 
 (c) Restrictions on Transfer. While Stock
Awards are subject to restrictions, a Participant may not sell, assign, transfer, pledge or otherwise dispose of the shares of a Stock Award except upon death as described in Section 16(a). If certificates are issued, each certificate for a
share of a Stock Award shall contain a legend giving appropriate notice of the restrictions in the Grant. The Participant shall be entitled to have the legend removed when all restrictions on such shares have lapsed. The Company may retain
possession of any certificates for Stock Awards until all restrictions on such shares have lapsed. 
 (d) Right to Vote and to
Receive Dividends. The Committee shall determine to what extent, and under what conditions, the Participant shall have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares during the
restriction period. The Committee may determine that dividends on Stock Awards shall be withheld while the Stock Awards are subject to restrictions and that the dividends shall be payable only upon the lapse of the restrictions on the Stock Awards,
or on such other terms as the Committee determines. Dividends that are not paid currently shall be credited to bookkeeping accounts on the Company’s records for purposes of the Plan. Accumulated dividends may accrue interest, as determined by
the Committee, and shall be paid in cash, shares of Company Stock, or in such other form as dividends are paid on Company Stock, as determined by the Committee.  
  

	 	10.	Stock Appreciation Rights  

 (a) General
Requirements. The Committee may grant SARs to an Employee or Non-Employee Director separately or in tandem with an Option. The Committee shall establish the number of shares, the terms and the base amount of the SAR at the time the SAR is
granted. The base amount of each SAR shall be not less than the Fair Market Value of a share of Company Stock as of the date of grant of the SAR. 
 (b) Tandem SARs. The Committee may grant tandem SARs either at the time the Option is granted or at any time thereafter while the Option remains outstanding; provided, however, that, in the case of an Incentive Stock Option, SARs may
be granted only at the date of the grant of the Incentive Stock Option. In the case of tandem SARs, the number of SARs granted to a Participant that shall be exercisable during a specified period shall not exceed the number of shares of Company
Stock that the Participant may purchase upon the exercise of the 

  

 9 

 
related Option during such period. Upon the exercise of an Option, the SARs relating to the Company Stock covered by such Option shall terminate. Upon the
exercise of SARs, the related Option shall terminate to the extent of an equal number of shares of Company Stock. 
 (c)
Exercisability. A SAR shall become exercisable in accordance with such terms and conditions as may be specified. The Committee may grant SARs that are subject to achievement of performance goals or other conditions. The Committee may
accelerate the exercisability of any or all outstanding SARs at any time for any reason. The Committee shall determine in the Grant Agreement under what circumstances and during what periods a Participant may exercise a SAR after termination of
employment or service. A tandem SAR shall be exercisable only while the Option to which it is related is exercisable. 
 (d) Grants to
Non-Exempt Employees. SARs granted to persons who are non-exempt employees under the Fair Labor Standards Act of 1938, as amended, may not be exercisable for at least six months after the date of grant (except that such SARs may become
exercisable, as determined by the Committee, upon the Participant’s death, Disability or retirement, or upon a Change of Control or other circumstances permitted by applicable regulations). 
 (e) Exercise of SARs. When a Participant exercises SARs, the Participant shall receive in settlement of such SARs an amount equal to the value of
the stock appreciation for the number of SARs exercised. The stock appreciation for a SAR is the amount by which the Fair Market Value of the underlying Company Stock on the date of exercise of the SAR exceeds the base amount of the SAR as specified
in the Grant Agreement. 
 (f) Form of Payment. The Committee shall determine whether the stock appreciation for a SAR shall be paid
in the form of shares of Company Stock, cash or a combination of the two. For purposes of calculating the number of shares of Company Stock to be received, shares of Company Stock shall be valued at their Fair Market Value on the date of exercise of
the SAR. If shares of Company Stock are to be received upon exercise of a SAR, cash shall be delivered in lieu of any fractional share. 
  

	 	11.	Other Stock-Based Awards 

 The Committee may
grant other awards not specified in Sections 7, 8, 9 or 10 above that are based on or measured by Company Stock to Employees and Non-Employee Directors, on such terms and conditions as the Committee deems appropriate. Other Stock-Based Awards may be
granted subject to achievement of performance goals or other conditions and may be payable in Company Stock or cash, or in a combination of the two, as determined by the Committee in the Grant Agreement. 
  

	 	12.	Qualified Performance-Based Compensation 

 (a) Designation as Qualified Performance-Based Compensation. The Committee may determine that Stock Units, Stock Awards, Dividend Equivalents or Other Stock-Based Awards granted to an Employee shall be considered “qualified
performance-based compensation” under section 162(m) of the Code, in which case the provisions of this Section 12 shall apply. 
  

 10 

 (b) Performance Goals. When Grants are made under this Section 12, the Committee shall
establish in writing (i) the objective performance goals that must be met, (ii) the period during which performance will be measured, (iii) the maximum amounts that may be paid if the performance goals are met, and (iv) any other
conditions that the Committee deems appropriate and consistent with the requirements of section 162(m) of the Code for “qualified performance-based compensation.” The performance goals shall satisfy the requirements for “qualified
performance-based compensation,” including the requirement that the achievement of the goals be substantially uncertain at the time they are established and that the performance goals be established in such a way that a third party with
knowledge of the relevant facts could determine whether and to what extent the performance goals have been met. The Committee shall not have discretion to increase the amount of compensation that is payable, but may reduce the amount of compensation
that is payable, pursuant to Grants identified by the Committee as “qualified performance-based compensation.” 
 (c) Criteria
Used for Objective Performance Goals. The Committee shall use objectively determinable performance goals based on one or more of the following criteria: stock price, earnings per share, price-earnings multiples, net earnings, operating earnings,
revenue, number of days sales outstanding in accounts receivable, productivity, margin, EBITDA (earnings before interest, taxes, depreciation and amortization), net capital employed, return on assets, shareholder return, return on equity, return on
capital employed, net income to shares of Company Stock, growth in assets, unit volume, sales, cash flow, market share, relative performance to a comparison group designated by the Committee, or strategic business criteria consisting of one or more
objectives based on meeting specified revenue goals, market penetration goals, customer growth, geographic business expansion goals, cost targets or goals relating to acquisitions or divestitures. The performance goals may relate to one or more
business units or the performance of the Company and its subsidiaries as a whole, or any combination of the foregoing. Performance goals need not be uniform as among Participants. 
 (d) Timing of Establishment of Goals. The Committee shall establish the performance goals in writing either before the beginning of the
performance period or during a period ending no later than the earlier of (i) 90 days after the beginning of the performance period or (ii) the date on which 25% of the performance period has been completed, or such other date as may be
required or permitted under applicable regulations under section 162(m) of the Code. 
 (e) Certification of Results. The Committee
shall certify the performance results for the performance period specified in the Grant Agreement after the performance period ends. The Committee shall determine the amount, if any, to be paid pursuant to each Grant based on the achievement of the
performance goals and the satisfaction of all other terms of the Grant Agreement. 
 (f) Death, Disability or Other Circumstances. The
Committee may provide in the Grant Agreement that Grants under this Section 12 shall be payable, in whole or in part, in the event of the Participant’s death or disability, a Change of Control or under other circumstances consistent with
the Treasury regulations and rulings under section 162(m) of the Code. 
  

 11 

	 	13.	Deferrals 

 The Committee may permit or
require a Participant to defer receipt of the payment of cash or the delivery of shares that would otherwise be due to the Participant in connection with any Grant. The Committee shall establish rules and procedures for any such deferrals,
consistent with applicable requirements of section 409A of the Code. 
  

	 	14.	Withholding of Taxes 

 (a) Required
Withholding. All Grants under the Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements. The Company may require that the Participant or other person receiving or exercising Grants pay to the
Company the amount of any federal, state or local taxes that the Company is required to withhold with respect to such Grants, or the Company may deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such
Grants. 
 (b) Election to Withhold Shares. If the Committee so permits, shares of Company Stock may be withheld to satisfy the
Company’s tax withholding obligation with respect to Grants paid in Company Stock, at the time such Grants become taxable, up to an amount that does not exceed the minimum applicable withholding tax rate for federal (including FICA), state and
local tax liabilities. 
  

	 	15.	Transferability of Grants 

 (a)
Restrictions on Transfer. Except as described in subsection (b) below, only the Participant may exercise rights under a Grant during the Participant’s lifetime, and a Participant may not transfer those rights except by will or by
the laws of descent and distribution. When a Participant dies, the personal representative or other person entitled to succeed to the rights of the Participant may exercise such rights. Any such successor must furnish proof satisfactory to the
Company of his or her right to receive the Grant under the Participant’s will or under the applicable laws of descent and distribution. 
 (b) Transfer of Nonqualified Stock Options to or for Family Members. Notwithstanding the foregoing, the Committee may provide, in a Grant Agreement, that a Participant may transfer Nonqualified Stock Options to family members, or one
or more trusts or other entities for the benefit of or owned by family members, consistent with applicable securities laws, according to such terms as the Committee may determine; provided that the Participant receives no consideration for the
transfer of a Nonqualified Stock Option and the transferred Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were applicable to the Nonqualified Stock Option immediately before the transfer. 
  

	 	16.	Consequences of a Change of Control  

 In the
event of a Change of Control, the Committee may take any one or more of the following actions with respect to or all outstanding Grants, without the consent of any Participant: (i) the Committee may determine that outstanding Options and SARs
shall be fully exercisable, and restrictions on outstanding Stock Awards and Stock Units shall lapse, as of the 

  

 12 

 
date of the Change of Control or at such other time as the Committee determines, (ii) the Committee may require that Participants surrender their
outstanding Options and SARs in exchange for one or more payments by the Company, in cash or Company Stock as determined by the Committee, in an amount equal to the amount, if any, by which the then Fair Market Value of the shares of Company Stock
subject to the Participant’s unexercised Options and SARs exceeds the Exercise Price, and on such terms as the Committee determines, (iii) after giving Participants an opportunity to exercise their outstanding Options and SARs, the
Committee may terminate any or all unexercised Options and SARs at such time as the Committee deems appropriate, (iv) with respect to Participants holding Stock Units and Other Stock-Based Awards, the Committee may determine that such
Participants shall receive one or more payments in settlement of such Stock Units and Other Stock-Based Awards, in such amount and form and on such terms as may be determined by the Committee, or (v) determine that all outstanding Options and
SARs that are not exercised shall be assumed by, or replaced with comparable options or rights by the surviving corporation (or a parent or subsidiary of the surviving corporation), and other outstanding Grants that remain in effect after the Change
of Control shall be converted to similar grants of the surviving corporation (or a parent or subsidiary of the surviving corporation). Such acceleration, surrender, termination, settlement or conversion shall take place as of the date of the Change
of Control or such other date as the Committee may specify. The Committee may provide in a Grant Agreement that a sale or other transaction involving a subsidiary or other business unit of the Company shall be considered a Change of Control for
purposes of a Grant, or the Committee may establish other provisions that shall be applicable in the event of a specified transaction. 
  

	 	17.	Requirements for Issuance of Shares 

 No
Company Stock shall be issued in connection with any Grant hereunder unless and until all legal requirements applicable to the issuance of such Company Stock have been complied with to the satisfaction of the Committee. The Committee shall have the
right to condition any Grant made to any Participant hereunder on such Participant’s undertaking in writing to comply with such restrictions on his or her subsequent disposition of such shares of Company Stock as the Committee shall deem
necessary or advisable, and certificates representing such shares may be legended to reflect any such restrictions. Certificates representing shares of Company Stock issued under the Plan will be subject to such stop-transfer orders and other
restrictions as may be required by applicable laws, regulations and interpretations, including any requirement that a legend be placed thereon. No Participant shall have any right as a shareholder with respect to Company Stock covered by a Grant
until shares have been issued to the Participant. 
  

	 	18.	Amendment and Termination of the Plan 

 (a)
Amendment. The Board may amend or terminate the Plan at any time; provided, however, that the Board shall not amend the Plan without approval of the shareholders of the Company if such approval is required in order to comply with the Code or
applicable laws, or to comply with applicable stock exchange requirements. No amendment or termination of this Plan shall, without the consent of the Participant, materially impair any rights or obligations under any Grant previously made to the
Participant under the Plan, unless such right has been reserved in 

  

 13 

 
the Plan or the Grant Agreement, or except as provided in Section 19(b) below. Notwithstanding anything in the Plan to the contrary, the Board may amend
the Plan in such manner as it deems appropriate in the event of a change in applicable law or regulations. 
 (b) No Repricing Without
Shareholder Approval. Notwithstanding anything in the Plan to the contrary, the Committee may not reprice Options or SARs, nor may the Board amend the Plan to permit repricing of Options or SARs, unless the shareholders of the Company provide
prior approval for such repricing. The term “repricing” shall have the meaning given that term in accordance with the applicable stock exchange in which such shares of Company Stock are registered, as in effect from time to time.

 (c) Shareholder Approval for “Qualified Performance-Based Compensation.” If Grants are made under Section 12 above,
the Plan must be reapproved by the Company’s shareholders no later than the first shareholders meeting that occurs in the fifth year following the year in which the shareholders previously approved the provisions of Section 13, if
additional Grants are to be made under Section 12 and if required by section 162(m) of the Code or the regulations thereunder. 
 (d)
Termination of Plan. The Plan shall terminate on the day immediately preceding the tenth anniversary of its Effective Date, unless the Plan is terminated earlier by the Board or is extended by the Board with the approval of the shareholders.
The termination of the Plan shall not impair the power and authority of the Committee with respect to an outstanding Grant. 
  

	 	19.	Miscellaneous 

 (a) Effective Date.
The Plan shall be effective as of the Effective Date. 
 (b) Grants in Connection with Corporate Transactions and Otherwise. Nothing
contained in this Plan shall be construed to (i) limit the right of the Committee to make Grants under this Plan in connection with the acquisition, by purchase, lease, merger, consolidation or otherwise, of the business or assets of any
corporation, firm or association, including Grants to employees thereof who become Employees, or for other proper corporate purposes, or (ii) limit the right of the Company to grant stock options or make other stock-based awards outside of this
Plan. Without limiting the foregoing, the Committee may make a Grant to an employee of another corporation who becomes an Employee by reason of a corporate merger, consolidation, acquisition of stock or property, reorganization or liquidation
involving the Company in substitution for a grant made by such corporation. The terms and conditions of the Grants may vary from the terms and conditions required by the Plan and from those of the substituted stock incentives, as determined by the
Committee 
 (c) Compliance with Law. The Plan, the exercise of Options and the obligations of the Company to issue or transfer shares
of Company Stock under Grants shall be subject to all applicable laws and to approvals by any governmental or regulatory agency as may be required. With respect to persons subject to section 16 of the Exchange Act, it is the intent of the Company
that the Plan and all transactions under the Plan comply with all applicable provisions of Rule 16b-3 or its successors under the Exchange Act. In addition, it is the intent of the Company that 

  

 14 

 
Incentive Stock Options comply with the applicable provisions of section 422 of the Code, that Grants of “qualified performance-based compensation”
comply with the applicable provisions of section 162(m) of the Code and that, to the extent applicable, Grants comply with the requirements of section 409A of the Code or an exception from such requirements. To the extent that any legal requirement
of section 16 of the Exchange Act or section 422, 162(m) or 409A of the Code as set forth in the Plan ceases to be required under section 16 of the Exchange Act or section 422, 162(m) or 409A of the Code, that Plan provision shall cease to apply.
The Committee may revoke any Grant if it is contrary to law or modify a Grant to bring it into compliance with any valid and mandatory government regulation. The Committee may also adopt rules regarding the withholding of taxes on payments to
Participants. The Committee may, in its sole discretion, agree to limit its authority under this Section. 
 (d) Enforceability. The
Plan shall be binding upon and enforceable against the Company and its successors and assigns. 
 (e) Funding of the Plan; Limitation on
Rights. This Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Grants under this Plan. Nothing contained in the Plan and no
action taken pursuant hereto shall create or be construed to create a fiduciary relationship between the Company and any Participant or any other person. No Participant or any other person shall under any circumstances acquire any property interest
in any specific assets of the Company. To the extent that any person acquires a right to receive payment from the Company hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company. 
 (f) Rights of Participants. Nothing in this Plan shall entitle any Employee, Non-Employee Director or other person to any claim or right to
receive a Grant under this Plan. Neither this Plan nor any action taken hereunder shall be construed as giving any individual any rights to be retained by or in the employment or service of the Employer. 
 (g) No Fractional Shares. No fractional shares of Company Stock shall be issued or delivered pursuant to the Plan or any Grant. The Committee
shall determine whether cash, other awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
 (h) Employees Subject to Taxation Outside the United States. With respect to Participants who are subject to taxation in countries other than the
United States, the Committee may make Grants on such terms and conditions as the Committee deems appropriate to comply with the laws of the applicable countries, and the Committee may create such procedures, addenda and subplans and make such
modifications as may be necessary or advisable to comply with such laws. 
 (i) Governing Law. The validity, construction,
interpretation and effect of the Plan and Grant Agreements issued under the Plan shall be governed and construed by and determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions
thereof. 
  

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