<SEC-DOCUMENT>0001193125-19-265068.txt : 20191009
<SEC-HEADER>0001193125-19-265068.hdr.sgml : 20191009
<ACCEPTANCE-DATETIME>20191009150346
ACCESSION NUMBER:		0001193125-19-265068
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20191009
DATE AS OF CHANGE:		20191009
EFFECTIVENESS DATE:		20191009

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SJW GROUP
		CENTRAL INDEX KEY:			0000766829
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				770066628
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-234140
		FILM NUMBER:		191144375

	BUSINESS ADDRESS:	
		STREET 1:		110 W. TAYLOR STREET
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
		BUSINESS PHONE:		4082797800

	MAIL ADDRESS:	
		STREET 1:		110 W. TAYLOR STREET
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	SJW CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>d811369ds8.htm
<DESCRIPTION>S-8
<TEXT>
<HTML><HEAD>
<TITLE>S-8</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">


<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>As filed with the Securities and Exchange Commission on October 9, 2019 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Registration
<FONT STYLE="white-space:nowrap">No.&nbsp;333-</FONT><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </B></P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P> <P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="margin-top:4pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>UNITED STATES </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>SECURITIES
AND EXCHANGE COMMISSION </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B>Washington, D.C. 20549 </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>FORM <FONT STYLE="white-space:nowrap">S-8</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:18pt; font-family:Times New Roman" ALIGN="center"><B>REGISTRATION STATEMENT </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>Under </I></B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:12pt; font-family:Times New Roman" ALIGN="center"><B><I>The
Securities Act of 1933 </I></B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:24pt; font-family:Times New Roman" ALIGN="center"><B>SJW GROUP </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(Exact name
of registrant as specified in its charter) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:8pt" ALIGN="center">


<TR>

<TD WIDTH="50%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" ALIGN="center"><B>Delaware</B></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"><B><FONT STYLE="white-space:nowrap">77-0066628</FONT></B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(State or other jurisdiction of</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>incorporation or organization)</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(IRS Employer</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Identification No.)</B></P></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>110 West Taylor Street </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>San Jose, California 95110 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Address of principal executive offices) (Zip Code) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Connecticut Water Service, Inc. 2014 Performance Stock Program </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Connecticut Water Service, Inc. 2004 Performance Stock Program </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Connecticut Water Service, Inc. 1994 Performance Stock Program </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(As Assumed by SJW Group) </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Full title of the Plan(s)) </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Suzy Papazian
</B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>General Counsel and Corporate Secretary </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>c/o SJW Group </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>110 West
Taylor Street </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>San Jose, California 95110 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Name and address of agent for service) </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>(405) <FONT STYLE="white-space:nowrap">279-7800</FONT> </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>(Telephone Number, including area code, of agent for service) </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center> <P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a <FONT STYLE="white-space:nowrap">non-accelerated</FONT>
filer, a smaller reporting company or an emerging growth company. See the definitions of &#147;large accelerated filer,&#148; &#147;accelerated filer,&#148; &#147;smaller reporting company,&#148; and &#147;emerging growth company&#148; in Rule <FONT
STYLE="white-space:nowrap">12b-2</FONT> of the Exchange Act: </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="17%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="57%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="21%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="2%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Large&nbsp;accelerated&nbsp;filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9746;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Accelerated&nbsp;filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Non-accelerated filer</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Smaller&nbsp;reporting&nbsp;company</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">Emerging&nbsp;growth&nbsp;company</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&#9744;</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section&nbsp;7(a)(2)(B) of the Securities Act. &#9744; </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><center>
<P STYLE="line-height:6.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1.00pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CALCULATION
OF REGISTRATION FEE </B></P> <P STYLE="font-size:4pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="44%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="13%"></TD></TR>


<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Title of Securities</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>to be Registered</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Amount</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>to be<BR>Registered</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Proposed</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Maximum<BR>Offering&nbsp;Price</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>per&nbsp;Share</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Proposed</B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Maximum<BR>Aggregate</B></P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Offering&nbsp;Price</B></P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000"><B>Amount&nbsp;of<BR>Registration&nbsp;Fee</B></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Connecticut Water Service, Inc. 2014 Performance Stock
Program Common Stock, par value $0.001 per share</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">62,033&nbsp;shares&nbsp;(1)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$69.60&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$4,317,496.80&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$560.41</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Connecticut Water Service, Inc. 2004 Performance Stock
Program Common Stock, par value $0.001 per share</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">67,153&nbsp;shares&nbsp;(2)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$69.60&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$4,673,848.80&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$606.67</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Connecticut Water Service, Inc. 1994 Performance Stock
Program Common Stock, par value $0.001 per share</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">26,836&nbsp;shares&nbsp;(3)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$69.60&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$1,867,785.60&nbsp;(4)</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$242.44</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" STYLE="BORDER-TOP:1px solid #000000"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">Aggregate Amount to be Registered:</P></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">156,022 shares</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" STYLE="BORDER-TOP:1px solid #000000"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">Aggregate Registration Fee:</TD>
<TD VALIGN="bottom" STYLE=" BORDER-LEFT:1px solid #000000; BORDER-TOP:1px solid #000000">&nbsp;</TD>
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="BORDER-TOP:1px solid #000000">$1,409.52</TD></TR>
<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
<TR STYLE="font-size:1px; ">
<TD COLSPAN="9" VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-top:1.00px solid #000000">&nbsp;</P></TD></TR>
</TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(1)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Represents shares of common stock of SJW Group (the &#147;Registrant&#148;) issuable pursuant to the
Connecticut Water Service, Inc. 2014 Performance Stock Program (as amended, the &#147;2014 Plan&#148;) at the time of its assumption by Registrant on the effective date of the merger contemplated pursuant to that certain Second Amended and Restated
Agreement and Plan and Merger by and among Connecticut Water Service, Inc., Registrant and Hydro Sub, Inc., dated as of August&nbsp;5, 2018 (as amended from time to time, the &#147;Merger Agreement&#148;), and (i)&nbsp;any additional shares that
become issuable under the 2014 Plan by reason of any stock dividend, stock split or other similar transaction pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the &#147;Securities Act&#148;) and (ii)&nbsp;an estimated number of
shares of common stock issuable pursuant to dividend equivalent rights that will accrue on awards under the 2014 Plan in connection with cash dividends declared in the future by the Registrant on its shares of common stock. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(2)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Represents shares of common stock of Registrant issuable pursuant to the Connecticut Water Service, Inc. 2004
Performance Stock Program (as amended, the &#147;2004 Plan&#148;) at the time of its assumption by Registrant on the effective date of the merger contemplated pursuant to Merger Agreement, and (i)&nbsp;any additional shares that become issuable
under the 2004 Plan by reason of any stock dividend, stock split or other similar transaction pursuant to Rule 416(a) under the Securities Act and (ii)&nbsp;an estimated number of shares of common stock issuable pursuant to dividend equivalent
rights that will accrue on awards under the 2004 Plan in connection with cash dividends declared in the future by the Registrant on its shares of common stock. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(3)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Represents shares of common stock of Registrant issuable pursuant to the Connecticut Water Service, Inc. 2004
Performance Stock Program (as amended, the &#147;1994 Plan&#148;) at the time of its assumption by Registrant on the effective date of the merger contemplated pursuant to Merger Agreement, and (i)&nbsp;any additional shares that become issuable
under the 1994 Plan by reason of any stock dividend, stock split or other similar transaction pursuant to Rule 416(a) under the Securities Act and (ii)&nbsp;an estimated number of shares of common stock issuable pursuant to dividend equivalent
rights that will accrue on awards under the 1994 Plan in connection with cash dividends declared in the future by the Registrant on its shares of common stock. </P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">(4)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Calculated solely for purposes of this offering under Rule 457(h) of the Securities Act. The proposed maximum
offering price per share and proposed maximum aggregate offering price have been computed based upon the average of the high and low closing sales price per share of Registrant&#146;s common stock on October&nbsp;8, 2019 as reported by the New York
Stock Exchange. </P></TD></TR></TABLE> <P STYLE="font-size:10pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P> <P STYLE="line-height:1.0pt;margin-top:0pt;margin-bottom:0pt;border-bottom:1px solid #000000">&nbsp;</P>
<P STYLE="line-height:3.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000">&nbsp;</P>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PART II </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Information Required in the Registration Statement </B></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 3. <U>Incorporation of Documents by Reference</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">The Registrant hereby incorporates by reference into this Registration Statement the following documents previously filed with the Securities
and Exchange Commission (the &#147;Commission&#148;): </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(a)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">The Registrant&#146;s Annual Report on <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682919000063/sjw2018q410k.htm">Form
 <FONT STYLE="white-space:nowrap">10-K</FONT></A> for the fiscal year ended December&nbsp;31, 2018 filed with the Commission on February&nbsp;27, 2019; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(b)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">The Registrant&#146;s Quarterly Reports on Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the three
months ended June&nbsp;30, 2019 and March&nbsp;31, 2019 filed with the Commission on <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682919000109/sjw-63019x10q.htm">July&nbsp;
26, 2019</A> and <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682919000101/sjw-33119x10q.htm">April&nbsp;26, 2019</A>, respectively; </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(c)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">All other reports filed pursuant to Section&nbsp;13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended (the &#147;Exchange Act&#148;), since the end of the fiscal year covered by the Registrant&#146;s Annual Report referred to in (a)&nbsp;above; and </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left">(d)</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">The description of the Registrant&#146;s common stock which is contained in the Registration Statement on <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682905000068/sjw-form8a10282005.txt">Form
 <FONT STYLE="white-space:nowrap">8-A</FONT></A> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT> filed with the Commission on October&nbsp;31, 2005 and Amendment No.&nbsp;
1 to <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682916000108/a8-aareincorporation.htm">Form <FONT STYLE="white-space:nowrap">8-A</FONT></A> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT> filed with the Commission
on November&nbsp;15, 2016, including any amendments or reports the Registrant files for purposes of updating that descriptions. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">All reports and definitive proxy or information statements, if any, filed pursuant to Section&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange
Act after the date of this Registration Statement and prior to the filing of a post-effective amendment which indicate that all securities offered hereby have been sold or which <FONT STYLE="white-space:nowrap">de-registers</FONT> all securities
then remaining unsold shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof from the date of filing of such documents. Unless expressly incorporated into this Registration Statement, a report
furnished but not filed on Form <FONT STYLE="white-space:nowrap">8-K</FONT> shall not be incorporated by reference into this Registration Statement. Any statement contained in a document incorporated or deemed to be incorporated by reference herein
shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any subsequently filed document which also is deemed to be incorporated by reference herein modifies or
supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 4. <U>Description of Securities</U> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Not
applicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 5. <U>Interests of Named Experts and Counsel</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Not applicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 6. <U>Indemnification of
Directors and Officers</U> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">The Registrant is a Delaware corporation. Reference is made to Section&nbsp;102(b)(7) of the General
Corporation Law of the State of Delaware (the &#147;DGCL&#148;), which enables a corporation in its certificate of incorporation to eliminate or limit the personal liability of a director for violations of the director&#146;s fiduciary duty, except:
</P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">for any breach of the director&#146;s duty of loyalty to the corporation or its stockholders;
</P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
</P></TD></TR></TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-1 </P>

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<Center><DIV STYLE="width:8.5in" align="left">

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">pursuant to Section&nbsp;174 of the DGCL (providing for liability of directors for unlawful payment of dividends
or unlawful stock purchases or redemptions); or </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="10%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">for any transaction from which a director derived an improper personal benefit. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Reference is also made to Section&nbsp;145 of the DGCL, which provides that a corporation may indemnify any persons, including officers and
directors, who are, or are threatened to be made, parties to any threatened, pending or completed legal action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of such
corporation), by reason of the fact that such person is or was a director, officer, employee or agent of such corporation or is or was serving at the request of such corporation as a director, officer, employee or agent of another corporation or
enterprise. The indemnity may include expenses (including attorneys&#146; fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, provided such
director, officer, employee or agent acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause
to believe that the person&#146;s conduct was unlawful. A Delaware corporation may indemnify officers and directors in an action by or in the right of the corporation under the same conditions, except that no indemnification is permitted without
judicial approval if the officer or director is adjudged to be liable to the corporation. Where an officer or director is successful on the merits or otherwise in the defense of any action referred to above, the corporation must indemnify him or her
against the expenses that such officer or director actually and reasonably incurred. The indemnification permitted under the DGCL is not exclusive, and a corporation is empowered to purchase and maintain insurance against liabilities whether or not
indemnification would be permitted by statute. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">The Registrant&#146;s certificate of incorporation and bylaws, each as amended, provide
for indemnification of its directors and officers to the fullest extent currently permitted by the DGCL. The Registrant also has indemnification agreements with its directors and officers. In addition, the Registrant maintains liability insurance
for its directors and officers. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 7. <U>Exemption from Registration Claimed</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Not applicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 8. <U>Exhibits</U> </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD></TD>

<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD WIDTH="88%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Exhibit&nbsp;Number</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center">Exhibit</P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Instruments Defining the Rights of Shareholders. Reference is made to Registrant&#146;s Registration Statement on Form <FONT STYLE="white-space:nowrap">8-A</FONT> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT>
filed with the Commission on October&nbsp;31, 2005 and Amendment No.&nbsp;1 to Form <FONT STYLE="white-space:nowrap">8-A</FONT> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT> filed with the Commission on November&nbsp;15, 2016,
describing the Registrant&#146;s common stock, which is incorporated herein by reference pursuant to Item 3 to this Registration Statement.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Second Amended and Restated Agreement and Plan of Merger, dated as of August&nbsp;5, 2018, by and among SJW Group, Hydro Sub, Inc. and Connecticut Water Service, Inc. Incorporated by reference as Exhibit 2.1 to Form <FONT
STYLE="white-space:nowrap">8-K</FONT> filed with the Commission on August&nbsp;6, 2018.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;5.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Opinion and consent of Morgan, Lewis&nbsp;&amp; Bockius LLP.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Consent of KPMG LLP, Independent Registered Public Accounting Firm.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Consent of Morgan, Lewis&nbsp;&amp; Bockius LLP is contained in Exhibit 5.1.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>24.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Power of Attorney. Reference is made to page <FONT STYLE="white-space:nowrap">II-5</FONT> of this Registration Statement.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Connecticut Water Service, Inc. 2014 Performance Stock Program.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Connecticut Water Service, Inc. 2004 Performance Stock Program.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.3</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Connecticut Water Service, Inc. 1994 Performance Stock Program.</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-2 </P>

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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Item 9. <U>Undertakings</U> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">A. The undersigned Registrant hereby undertakes: (1)&nbsp;to file, during any period in which offers or sales are being made, a post-effective
amendment to this Registration Statement: (i)&nbsp;to include any prospectus required by Section&nbsp;10(a)(3) of the Securities Act of 1933, as amended (the &#147;Securities Act&#148;), (ii) to reflect in the prospectus any facts or events arising
after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement and
(iii)&nbsp;to include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement; provided, however, that
clauses (1)(i) and (1)(ii) shall not apply if the information required to be included in a post-effective amendment by those clauses is contained in periodic reports filed with or furnished to the Commission by the Registrant pursuant to
Section&nbsp;13 or Section&nbsp;15(d) of the Exchange Act that are incorporated by reference into this Registration Statement; (2)&nbsp;that, for the purpose of determining any liability under the Securities Act, each such post-effective amendment
shall be deemed to be a new registration statement relating to the securities offered therein and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof; and (3)&nbsp;to remove from registration by
means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the 2014 Plan, the 2004 Plan and the 1994 Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">B. The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the
Registrant&#146;s annual report pursuant to Section&nbsp;13(a) or Section&nbsp;15(d) of the Exchange Act that is incorporated by reference into this Registration Statement shall be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">C. Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or controlling persons of the Registrant pursuant to the indemnification provisions summarized in Item 6 or otherwise, the Registrant has
been advised that, in the opinion of the Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other
than the payment by the Registrant of expenses incurred or paid by a director, officer, or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-3 </P>

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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">EXHIBIT INDEX </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD></TD>

<TD VALIGN="bottom" WIDTH="9%"></TD>
<TD WIDTH="88%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000">Exhibit&nbsp;Number</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; border-bottom:1.00pt solid #000000; display:table-cell; font-size:8pt; font-family:Times New Roman; " ALIGN="center">Exhibit</P></TD></TR>


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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Instruments Defining the Rights of Shareholders. Reference is made to Registrant&#146;s Registration Statement on <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682905000068/sjw-form8a10282005.txt">Form <FONT
STYLE="white-space:nowrap">8-A</FONT></A> (File <FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT> filed with the Commission on October&nbsp;
31, 2005 and <A HREF="http://www.sec.gov/Archives/edgar/data/766829/000076682916000108/a8-aareincorporation.htm">Amendment No.&nbsp;1 to Form <FONT STYLE="white-space:nowrap">8-A</FONT></A> (File
<FONT STYLE="white-space:nowrap">No.&nbsp;001-08966)</FONT> filed with the Commission on November&nbsp;15, 2016, describing the Registrant&#146;s common stock, which is incorporated herein by reference pursuant to Item 3 to this Registration
Statement.</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;4.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="http://www.sec.gov/Archives/edgar/data/766829/000119312518239077/d526512dex21.htm">Second Amended and Restated Agreement and Plan of Merger, dated as of August&nbsp;
5, 2018, by and among SJW Group, Hydro Sub, Inc. and Connecticut Water Service, Inc. Incorporated by reference as Exhibit 2.1 to Form <FONT STYLE="white-space:nowrap">8-K</FONT> filed with the Commission on August&nbsp;6, 2018. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>&nbsp;&nbsp;5.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex51.htm">Opinion and consent of Morgan, Lewis&nbsp;&amp; Bockius LLP. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex231.htm">Consent of KPMG LLP, Independent Registered Public Accounting Firm. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>23.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex51.htm">Consent of Morgan, Lewis&nbsp;&amp; Bockius LLP is contained in Exhibit 5.1. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>24.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="#sig">Power of Attorney. Reference is made to page <FONT STYLE="white-space:nowrap">II-5</FONT> of this Registration Statement. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.1</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex991.htm">Connecticut Water Service, Inc. 2014 Performance Stock Program. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.2</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex992.htm">Connecticut Water Service, Inc. 2004 Performance Stock Program. </A></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" NOWRAP>99.3</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"><A HREF="d811369dex993.htm">Connecticut Water Service, Inc. 1994 Performance Stock Program. </A></TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-4 </P>

</DIV></Center>


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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><A NAME="sig"></A>SIGNATURES </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form <FONT STYLE="white-space:nowrap">S-8,</FONT> and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of San Jose,
in the State of California on this 9th day of October, 2019. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD WIDTH="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top" COLSPAN="3"><B>SJW GROUP</B></TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">By:</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James P. Lynch</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">James P. Lynch</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">Chief Financial Officer and Treasurer</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>POWER OF ATTORNEY </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>KNOW ALL PERSONS BY THESE PRESENTS: </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">That
the undersigned officers and directors of SJW Group, a Delaware corporation, do hereby constitute and appoint James P. Lynch and Suzy Papazian, and each of them, the lawful
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">attorneys-in-fact</FONT></FONT> and agents with full power and authority to do any and all acts and things and to execute any and all instruments which said attorneys and agents, and
any one of them, determine may be necessary or advisable or required to enable said corporation to comply with the Securities Act of 1933, as amended, and any rules or regulations or requirements of the Securities and Exchange Commission in
connection with this Registration Statement. Without limiting the generality of the foregoing power and authority, the powers granted include the power and authority to sign the names of the undersigned officers and directors in the capacities
indicated below to this Registration Statement, to any and all amendments, both <FONT STYLE="white-space:nowrap">pre-effective</FONT> and post-effective, and supplements to this Registration Statement, and to any and all instruments or documents
filed as part of or in conjunction with this Registration Statement or amendments or supplements thereof, and each of the undersigned hereby ratifies and confirms that all said attorneys and agents, or any one of them, shall do or cause to be done
by virtue hereof. This Power of Attorney may be signed in several counterparts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">IN WITNESS WHEREOF, each of the undersigned has executed
this Power of Attorney as of the date indicated. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Pursuant to the requirements of the Securities Act of 1933, as amended, this
Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="38%"></TD>

<TD VALIGN="bottom"></TD>
<TD WIDTH="44%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Signature</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Title</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Date</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Eric W. Thornburg</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Eric W. Thornburg</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">President, Chief Executive Officer and Chairman of the Board (Principal Executive Officer)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ James P. Lynch</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">James P. Lynch</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Chief Financial Officer and Treasurer (Principal Financial Officer)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-5 </P>

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<Center><DIV STYLE="width:8.5in" align="left">

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<TD WIDTH="38%"></TD>

<TD VALIGN="bottom"></TD>
<TD WIDTH="44%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="16%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:8pt">
<TD VALIGN="bottom" NOWRAP ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Signature</B></P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Title</B></P></TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom" ALIGN="center" STYLE="border-bottom:1.00pt solid #000000"> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:8pt; font-family:Times New Roman" ALIGN="center"><B>Date</B></P></TD></TR>


<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Wendy Avila-Walker</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Wendy Avila-Walker</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Vice President of Finance, Controller and Assistant Treasurer (Principal Accounting Officer)</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Katharine Armstrong</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Katharine Armstrong</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Walter J. Biship</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Walter J. Bishop</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Douglas R. King</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Douglas R. King</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Gregory P. Landis</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Gregory P. Landis</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Debra C. Man</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Debra C. Man</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Daniel B. More</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Daniel B. More</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Robert A Van Valer</P>
<P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman">Robert A. Van Valer</P></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top">Director</TD>
<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="top">October&nbsp;9, 2019</TD></TR>
</TABLE>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">II-6 </P>

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<TYPE>EX-5.1
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<DESCRIPTION>EX-5.1
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<TITLE>EX-5.1</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXHIBIT 5.1 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>OPINION AND CONSENT OF MORGAN, LEWIS&nbsp;&amp; BOCKIUS LLP </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October 9, 2019 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">SJW Group </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">110 West Taylor Street </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">San Jose, California 95110 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Re: SJW Group &#150; Registration Statement for Offering of 156,022 Common Stock </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have acted as
counsel to SJW Group, a Delaware corporation (the &#147;<B><I>Company</I></B>&#148;), in connection with the registration on Form <FONT STYLE="white-space:nowrap">S-8</FONT> (the &#147;<B><I>Registration Statement</I></B>&#148;) under the Securities
Act of 1933, as amended (the &#147;<B><I>Securities Act</I></B>&#148;), of an aggregate of 156,022&nbsp;shares of the Company&#146;s common stock (the&nbsp;&#147;<B><I>Shares</I></B>&#148;) issuable pursuant to the equity awards outstanding under
the Connecticut Water Service, Inc. 2014 Performance Stock Program (as amended, the &#147;<B><I>2014 Plan</I></B>&#148;), the Connecticut Water Service, Inc. 2004 Performance Stock Program (as amended, the &#147;<B><I>2004 Plan</I></B>&#148;) and
the Connecticut Water Service, Inc. 1994 Performance Stock Program (as amended, the &#147;<B><I>1994 Plan</I></B>&#148; and together with the 2014 Plan and 2004 Plan, the &#147;<B><I>Plans</I></B>&#148;) assumed by the Company on the effective date
of the merger contemplated pursuant to that certain Second Amended and Restated Agreement and Plan and Merger by and among Connecticut Water Service, Inc., the Company and Hydro Sub, Inc., dated as of August&nbsp;5, 2018 (as amended from time to
time, the &#147;<B><I>Merger Agreement</I></B>&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This opinion is being furnished in accordance with the requirements of Item 8 of
Form <FONT STYLE="white-space:nowrap">S-8</FONT> and Item 601(b)(5)(i) of Regulation <FONT STYLE="white-space:nowrap">S-K.</FONT> </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have
reviewed the Company&#146;s charter documents, the Merger Agreement and the corporate proceedings taken by the Company with respect to the assumption of the Plans pursuant to the Merger Agreement. Based on such review, we are of the opinion that,
if, as and when the Shares have been issued pursuant to the applicable provisions of each Plan and outstanding award agreements and related assumption agreements evidencing the assumption of the equity awards assumed by the Company under the Plans
and in accordance with the Registration Statement and assuming the transaction contemplated under the Merger Agreement has been consummated in accordance its terms, such Shares will be duly authorized, legally issued, fully paid and nonassessable.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We consent to the filing of this opinion letter as Exhibit 5.1 to the Registration Statement. In giving the opinion set forth in this
letter, we do not hereby admit that we are acting within the category of persons whose consent is required under Section&nbsp;7 of the Securities Act or the rules and regulations of the Securities and Exchange Commission thereunder. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This opinion letter is rendered as of the date first written above and we disclaim any
obligation to advise you of facts, circumstances, events or developments which hereafter may be brought to our attention and which may alter, affect or modify the opinion expressed herein. Our opinion is expressly limited to the matters set forth
above and we render no opinion, whether by implication or otherwise, as to any other matters relating to the Company, the Plans or the Shares. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top">Very truly yours,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top">/s/ MORGAN, LEWIS&nbsp;&amp; BOCKIUS LLP</TD></TR>
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<TYPE>EX-23.1
<SEQUENCE>3
<FILENAME>d811369dex231.htm
<DESCRIPTION>EX-23.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXHIBIT 23.1 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Consent of Independent Registered Public Accounting Firm </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Board of Directors </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">SJW Group: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We consent to the use of our report dated February&nbsp;27, 2019, with respect to the consolidated balance sheets of SJW Group as of December&nbsp;31, 2018 and
2017, the related consolidated statements of comprehensive income, changes in stockholders&#146; equity, and cash flows for each of the years in the three-year period ended December&nbsp;31, 2018, and the related notes and financial statement
schedule II (collectively, the &#147;consolidated financial statements&#148;), and the effectiveness of internal control over financial reporting as of December&nbsp;31, 2018, which report appears in the December&nbsp;31, 2018 annual report on Form <FONT
STYLE="white-space:nowrap">10-K</FONT> of SJW Group, incorporated herein by reference. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">/s/ <B>KPMG LLP</B> </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Santa Clara, California </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">October&nbsp;9, 2019 </P>
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<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>d811369dex991.htm
<DESCRIPTION>EX-99.1
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXHIBIT 99.1 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CONNECTICUT WATER SERVICE, INC. 2014 PERFORMANCE STOCK PROGRAM </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>1. Purpose </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The purpose of the
Connecticut Water Service, Inc. 2014 Performance Stock Program (the &#147;<I>Plan</I>&#148;) is to strengthen Connecticut Water Service, Inc., a Connecticut corporation (the &#147;<I>Company</I>&#148;) and its Subsidiaries (as hereinafter defined),
by providing an incentive to their employees, officers, consultants and directors and thereby encouraging them to devote their abilities and industry to the success of the business enterprise of the Company and its Subsidiaries. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">It is intended that this purpose be achieved by extending to employees (including future employees who have received a formal written offer of
employment), officers, consultants and <FONT STYLE="white-space:nowrap">non-employee</FONT> directors of the Company and its Subsidiaries an added long-term incentive for high levels of performance and unusual efforts through the grant of Incentive
Stock Options, <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Performance Share Unit or Performance Cash Unit Awards (as each such term is herein defined), Other Stock-Based
Awards or any combination of the foregoing. The various types of long-term incentive awards that may be provided under the Plan will enable the Company to respond to changes in compensation practices, securities and tax laws, applicable accounting
standards and regulations and the size and diversity of the Company&#146;s businesses. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>2. Definitions </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following definitions shall be applicable throughout the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) &#147;<I>Award</I>&#148; means, individually or collectively, any grant or sale pursuant to the Plan of any Incentive Stock Option, <FONT
STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option, Restricted Stock Award, Performance Share Unit, Performance Cash Unit, Stock Appreciation Right, or Other Stock-Based Award made under the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) &#147;<I>Award Agreement</I>&#148; means a written agreement between the Company and a Participant who has been granted an Award that
defines the rights and obligations of the parties with respect to such Award. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) &#147;<I>Award Period</I>&#148; means a period of time
within which performance is measured for the purpose of determining whether an Award of Performance Share Units or Performance Cash Units has been earned. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) &#147;<I>Base Price</I>&#148; means the price to be used as the basis for determining the Spread upon the exercise of a Stock Appreciation
Right; provided, however, that such price shall be equal to or greater than the Fair Market Value of a share of Stock underlying the Stock Appreciation Right on the Date of Grant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) &#147;<I>Benefit Arrangement</I>&#148; shall have the meaning set forth in Section&nbsp;16(d). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) &#147;<I>Board</I>&#148; means the Board of Directors of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) &#147;<I>Change in Control</I>&#148; shall be deemed to have occurred if, after the date an Award is granted, any of the following occurs:
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) a public announcement shall be made or a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to
Section&nbsp;13(d) of the Exchange Act disclosing that any Person (as defined below), other than Company or a Subsidiary or any employee benefit plan sponsored by Company or a Subsidiary, is the beneficial owner (as the term is defined in Rule <FONT
STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act) directly or indirectly, of twenty percent (20%) or more of the total voting power represented by Company&#146;s then outstanding voting common stock (calculated as provided in paragraph
(d)&nbsp;of Rule <FONT STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act in the case of rights to acquire voting common stock); or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) any Person, other than Company or a Subsidiary or any employee benefit plan sponsored by Company or a Subsidiary, shall purchase shares
pursuant to a tender offer or exchange offer to acquire any voting common stock of Company (or securities convertible into such voting common stock) for cash, securities or any other consideration, provided that after consummation of the offer, the
Person in question is the beneficial owner directly or indirectly, of twenty percent (20%) or more of the total voting power represented by Company&#146;s then outstanding voting common stock (all as calculated under clause (i)&nbsp;above); or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) the consummation of a consolidation or merger of Company in which Company is not the continuing or surviving corporation (other than a
consolidation or merger of Company in which holders of the outstanding capital stock of Company immediately prior to the consolidation or merger have the same proportionate ownership of the outstanding capital stock of the surviving corporation
immediately after the consolidation or merger as immediately before), or pursuant to which the outstanding capital stock of Company would be converted into cash, securities or other property; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) the complete liquidation or dissolution of the Company; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) the consummation of any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of Company; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vi) the Incumbent Directors cease for any reason to constitute at least a majority of the
Board; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vii) the Board of Directors of Company, by a vote of a majority of all the Directors adopts a resolution to the effect that a
&#147;Change in Control&#148; has occurred for purposes of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) &#147;<I>Code</I>&#148; means the Internal Revenue Code of 1986,
as amended. Reference in the Plan to any section of the Code shall be deemed to include any amendments or successor provisions to such section and any rules, regulations and interpretations under such section. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) &#147;<I>Committee</I>&#148; means the Compensation Committee of the Board, or, if the
Board so directs, the full Board or another committee appointed by the Board to administer the Plan as described in Section&nbsp;4. For any period during which no such committee is in existence, &#147;Committee&#148; shall mean the Board and all
authority and responsibility assigned to the Committee under the Plan shall be exercised, if at all, by the Board. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j) &#147;<I>Common
Stock</I>&#148; means the common stock, without par value, of the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(k) &#147;<I>Company</I>&#148; means Connecticut Water Service,
Inc., a Connecticut corporation. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(l) &#147;<I>Covered Employee</I>&#148; means a Participant whom the Committee designates, for each Award
Period or Restricted Period, as applicable, or as the recipient of an Option or Stock Appreciation Right in order to qualify for the Section&nbsp;162(m) Exemption. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(m) &#147;<I>Date of Grant</I>&#148; means the date on which the granting of an Award is authorized. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(n) &#147;<I>Disability</I>&#148; means that the Participant is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment; provided, however, for purposes of determining the term of an Incentive Stock Option awarded pursuant to Section&nbsp;7 hereof, the term Disability shall have the meaning ascribed to it under
Section&nbsp;22(e)(3) of the Code. The determination of whether an individual has a Disability shall be determined under procedures established by the Committee. Except in situations where the Committee is determining Disability for purposes of the
term of an Incentive Stock Option pursuant to Section&nbsp;7 hereof within the meaning of Section&nbsp;22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled for purposes of benefits under any long-term
disability plan maintained by the Company or any Subsidiary in which a Participant participates. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(o) &#147;<I>Dividend
Equivalent</I>&#148; shall have the meaning set forth in Section&nbsp;9(c)(iii) hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(p) &#147;<I>Effective Date</I>&#148; shall have
the meaning set forth in Section&nbsp;3 hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(q) &#147;<I>Election Form</I>&#148; shall mean the written election form of a Participant
with respect to the Participant&#146;s Performance Share Account, as more fully described in Section&nbsp;9(c)(i). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(r) &#147;<I>Eligible
Person</I>&#148; means any of the following individuals who is designated by the Committee as eligible to receive Options or other Awards subject to the conditions set forth herein: (i)&nbsp;any director, officer or employee of the Company or a
Subsidiary, (ii)&nbsp;any individual to whom the Company or a Subsidiary has extended a formal, written offer of employment, or (iii)&nbsp;any consultant or advisor to the Company or a Subsidiary. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(s) &#147;<I>Exchange Act</I>&#148; means the Securities Exchange Act of 1934, as amended. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(t) &#147;<I>Fair Market Value</I>&#148; means the fair market value per share of Stock, determined as follows: </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) if the Stock trades on a national securities exchange, the closing sale price (for the
primary trading session) on the date prior to the date of determination; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) if the Stock does not trade on any such exchange, the
average of the closing bid and asked prices as reported by an authorized <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Over-The-Counter</FONT></FONT> Bulletin Board market data vendor as listed on the OTCBB website (otcbb.com)
(or another similar system then in use as determined by the Committee) on the date prior to the date of determination; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) if the
Stock is not publicly traded, the Committee shall determine the Fair Market Value for purposes of the Plan using any measure of value it determines to be appropriate (including, as it considers appropriate, relying on appraisals) in a manner
consistent with the valuation principles under Section&nbsp;409A of the Code, except as the Committee may expressly determine otherwise. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">For any date of determination that is not a trading day, the Fair Market Value of a share of Stock for such date will be determined by using
the closing sale price or average of the bid and asked prices, as appropriate, for the immediately preceding trading day. The Committee can substitute a particular time of day or other measure of &#147;closing sale price&#148; or &#147;bid and asked
prices&#148; if appropriate because of exchange or market procedures or can use weighted averages either on a daily basis or such longer period as complies with Section&nbsp;409A of the Code. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(u) &#147;<I>Family Member</I>&#148; means a Participant&#146;s child, stepchild, grandchild, parent, grandparent, stepparent, spouse, former
spouse, sibling, niece, nephew, <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">mother-in-law,</FONT></FONT> <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">father-in-law,</FONT></FONT> <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">son-in-law,</FONT></FONT> <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">daughter-in-law,</FONT></FONT>
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">brother-in-law,</FONT></FONT> or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">sister-in-law,</FONT></FONT> including adoptive relationships, any person sharing
the Participant&#146;s household (other than a tenant or employee), a trust in which the foregoing persons have more than fifty percent (50%) of the beneficial interests, a foundation in which the foregoing persons (or the Participant) control the
management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent (50%) of the voting interests. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(v) &#147;<I>Holder</I>&#148; means a Participant who has been granted an Award, or a permitted transferee of such a Participant as described
in Section&nbsp;18 hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(w) &#147;<I>Incentive Stock Option</I>&#148; means an Option granted by the Committee to a Participant under
the Plan that is designated by the Committee as an &#147;incentive stock option&#148; within the meaning of Section&nbsp;422 of the Code. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(x) &#147;<I>Incumbent Directors</I>&#148; means those individuals who, on the Effective Date, constitute the Board, provided that any
individual becoming a director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at least <FONT STYLE="white-space:nowrap">two-thirds</FONT> (2/3rds) of the Incumbent Directors then on
the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination) shall be an Incumbent Director. No individual initially elected
or nominated as a director of the Company as a result of an actual or threatened election contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board
shall be an Incumbent Director. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">4 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(y) &#147;<I>Insider</I>&#148; means, at any time, any person whose transactions in Stock
are subject to Section&nbsp;16 of the Exchange Act or any successor rule or regulation thereto as in effect from time to time. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(z)
&#147;<I><FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option</I>&#148; means an Option granted under the Plan that is not designated as an Incentive Stock Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(aa) &#147;<I>Normal Termination</I>&#148; means termination of employment or service with the Company or a Subsidiary other than by reason of
death or Disability. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(bb) &#147;<I>Option</I>&#148; means an Award of an Incentive Stock Option or a
<FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option granted under Section&nbsp;7 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(cc) &#147;<I>Option
Period</I>&#148; means the period described in Section&nbsp;7(c) of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(dd) &#147;<I>Option Price</I>&#148; means the exercise
price set for an Option described in Section&nbsp;7(a) of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ee) &#147;<I>Other Agreement</I>&#148; shall have the meaning set
forth in Section&nbsp;16(d). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ff) &#147;<I>Other Stock-Based Award</I>&#148; shall mean any Award based on, measured by or payable in
Stock, as described in Section&nbsp;11. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(gg) &#147;<I>Parachute Payment</I>&#148; shall have the meaning set forth in Section&nbsp;16(d).
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(hh) &#147;<I>Participant</I>&#148; means an Eligible Person who has been selected by the Committee to participate in the Plan and to
receive an Award pursuant to Section&nbsp;6 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) &#147;<I>Performance Criteria</I>&#148; means the criterion or criteria that
the Committee shall select for purposes of establishing the Performance Goals for an Award Period or Restricted Period from the following list: growth in earnings per share, rate of return on stockholders&#146; equity, earnings per share, total
stockholder return, water quality, customer satisfaction, customer growth, net income, operating income, book value per share, expense management, profitability of an identifiable business unit, Stock price, revenues or sales, cash flow, working
capital, completion of business acquisitions or other measurement of corporate performance. The Performance Criteria may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant
or an organizational level specified by the Committee, including, but not limited to, a Subsidiary or unit, division, group of the Company or a Subsidiary. Performance Criteria may be measured on an absolute or relative basis, including but not
limited to performance as measured against a group of peer companies or by a financial market index. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(jj) &#147;<I>Performance Goals</I>&#148; means the written performance objective or
objectives established by the Committee under Section&nbsp;9 of the Plan with respect to an Award Period or Restricted Period, with respect to Performance Share Units or Performance Cash Units or Restricted Stock, respectively, established for the
purpose of determining whether, and to what extent, such Awards will be earned for an Award Period or Restricted Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(kk)
&#147;<I>Performance Cash Unit</I>&#148; means a hypothetical equivalent to a number of dollars established by the Committee and granted in connection with an Award made under Section&nbsp;9 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ll) &#147;<I>Performance Share Account</I>&#148; means an account established for a Participant under Section&nbsp;9 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(mm) &#147;<I>Performance Share Unit</I>&#148; means a hypothetical investment equivalent equal to one share of Stock granted in connection
with an Award made under Section&nbsp;9 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(nn) &#147;<I>Person</I>&#148; means any individual, corporation, partnership,
company or other entity, and for the purposes of the definition of a &#147;Change in Control&#148; set forth in Section&nbsp;2(g) hereof shall include a &#147;group&#148; within the meaning of Section&nbsp;13(d)(3) of the Exchange Act. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(oo) &#147;<I>Plan</I>&#148; means the Connecticut Water Service, Inc. 2014 Performance Stock Program. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(pp) &#147;<I>Predecessor Plan</I>&#148; means, collectively: (i)&nbsp;the Company&#146;s 1994 Performance Stock Program, as amended and
restated as of April&nbsp;26, 2002; and (ii)&nbsp;the Company&#146;s 2004 Performance Stock Program, as amended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(qq) &#147;<I>Qualified
Performance-Based Award</I>&#148; means either: (i)&nbsp;a Performance Cash Unit, Performance Share Unit or Restricted Stock Award that is intended to qualify for the Section&nbsp;162(m) Exemption and is made subject to Performance Goals based on
Qualified Performance Criteria; or (ii)&nbsp;an Option or Stock Appreciation Right having an exercise price equal to or greater than the Fair Market Value of the underlying Stock as of the Date of Grant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(rr) &#147;<I>Qualified Performance Criteria</I>&#148; means one or more of the Performance Goals established by the Committee that meet the
objectivity and any other requirements for the Section&nbsp;162(m) Exemption. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ss) &#147;<I>Restricted Period</I>&#148; means, with
respect to any share of Restricted Stock, the period of time determined by the Committee during which such Award is subject to the restrictions set forth in Section&nbsp;10 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(tt) &#147;<I>Restricted Stock</I>&#148; means shares of Stock issued or transferred to a Participant subject to forfeiture and the other
restrictions set forth in Section&nbsp;10 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(uu) &#147;<I>Restricted Stock Award</I>&#148; means an Award of Restricted Stock
granted under Section&nbsp;10 of the Plan. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(vv) &#147;<I>Section</I><I></I><I>&nbsp;162(m) Exemption</I>&#148; means the exemption from
the limitation on deducibility imposed by Section&nbsp;162(m) of the Code that is set forth in Section&nbsp;162(m)(4)(C) of the Code. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ww)
&#147;<I>Securities Act</I>&#148; means the Securities Act of 1933, as amended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(xx) &#147;<I>Spread</I>&#148; means, in the case of a
Stock Appreciation Right, the amount by which the Fair Market Value on the date when any such Stock Appreciation Right is exercised exceeds the Base Price specified in such Stock Appreciation Right. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(yy) &#147;<I>Stock</I>&#148; means the Common Stock or such other authorized shares of stock of the Company as from time to time may be
authorized for use under the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(zz) &#147;<I>Stock Appreciation Right</I>&#148; means an Award granted under Section&nbsp;8 of the
Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(aaa) &#147;<I>Subsidiary</I>&#148; means any corporation or other entity, 50% or more of whose outstanding voting stock or general
voting power is beneficially owned directly or indirectly by the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(bbb) &#147;<I>Treasury Regulations</I>&#148; means the
regulations, as amended from time to time, promulgated under the Code. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ccc) &#147;<I>Trust</I>&#148; means the grantor trust, if any,
described in Section&nbsp;9(c)(ii) of the Plan. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>3. Effective Date, Duration and Stockholder Approval </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan was first adopted and made effective as of March&nbsp;12, 2014 (the &#147;<I>Effective Date</I>&#148;). The validity of any and all
Awards granted pursuant to the Plan shall be effective when made (unless otherwise specified by the Committee on the Date of Grant), but shall be conditioned upon, and subject to, approval of the Plan by the stockholders of the Company at a meeting
duly held in accordance with the applicable laws of the state of Connecticut within twelve (12)&nbsp;months after the Effective Date in a manner that complies with Section&nbsp;422(b)(1) of the Code and Section&nbsp;162(m)(4)(C)(ii) of the Code.
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The expiration date of the Plan, after which no Awards may be granted hereunder, shall be May&nbsp;8, 2024; provided, however, that the
administration of the Plan shall continue in effect until all matters relating to the payment of Awards previously granted have been settled. Awards granted pursuant to the Plan within this <FONT STYLE="white-space:nowrap">ten-year</FONT> period
shall not expire solely by reason of the termination of the Plan. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>4. Administration </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan shall be administered by the Committee, which shall be composed of at least two persons serving as directors of the Company, each
member of which, at the time he or she takes any action with respect to an Award under the Plan, shall be a <FONT STYLE="white-space:nowrap">&#147;Non-Employee</FONT> Director&#148;, as defined in Rule <FONT STYLE="white-space:nowrap">16b-3</FONT>
under the Exchange Act, an &#147;independent director&#148; under the listing </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>

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standards of the Nasdaq Stock Market, LLC and an &#147;outside director&#148;, as defined in Treasury Regulations <FONT STYLE="white-space:nowrap">Section&nbsp;1.162-27(e)(3),</FONT> or any
successor rules or regulation of each of the foregoing. The majority of the members of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present or acts approved in writing by
a majority of the Committee shall be deemed the acts of the Committee. The Committee may also act without meeting by unanimous written consent. The expenses of administering the Plan shall be borne by the Company. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subject to the provisions of the Plan, the Committee shall have exclusive power to: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Select the Eligible Persons to participate in the Plan; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Determine the nature and extent of the Awards to be made to each Participant; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Determine the time or times when Awards will be made to Eligible Persons; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) Determine the duration of each Award Period and Restricted Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) Determine the conditions to which the payment of Awards may be subject; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) Establish and administer the Performance Goals, if any, for each Award Period and, with respect to Covered Employees, certify that
Performance Goals are attained in accordance with the requirements of Treasury Regulations <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Section&nbsp;1-162-27(e)(5);</FONT></FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) Prescribe and interpret the form of Award Agreement or other form or forms evidencing Awards; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) Cause records to be established in which there shall be entered, from time to time as Awards are made to Eligible Persons, the date of each
Award, the number of Incentive Stock Options, <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options, Stock Appreciation Rights, Performance Share Units, Performance Cash Units, shares of Restricted Stock or Other Stock-Based Awards
awarded by the Committee to each Eligible Person, and the expiration date and the duration of any applicable Award Period or Restricted Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) to determine, consistent with Section&nbsp;14(p) hereof, the duration and purpose of leaves of absences that may be granted to a
Participant without constituting termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to employees under the Company&#146;s employment policies; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j) to make decisions with respect to outstanding Awards that may become necessary upon the occurrence of a Change in Control as described in
Section&nbsp;13 or an event that triggers anti-dilution adjustments as described in Section&nbsp;15. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee shall have the
authority, subject to the provisions of the Plan, to establish, adopt, or revise such rules and regulations and to make all such determinations relating to the Plan as it may deem necessary or advisable for the administration of the Plan. The
Committee&#146;s interpretation of the Plan or any documents evidencing Awards granted pursuant thereto and all decisions and determinations by the Committee with respect to the Plan shall be final, binding, and conclusive on all parties unless
otherwise determined by the Board. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Anything in the Plan to the contrary notwithstanding, no term or provision of the Plan relating to
Incentive Stock Options or any Award Agreement providing for Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan under
Section&nbsp;422 of the Code, or, without the consent of the Holder(s) affected, to disqualify any Incentive Stock Option under such Section&nbsp;422. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>5. Grant of Awards, Shares of Stock Subject to the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee may, from time to time, grant Awards of Options, Restricted Stock, Stock Appreciation Rights, Other Stock-Based Awards and/or
Performance Share Units or Performance Cash Units to one or more Eligible Persons; provided, however, that: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Subject to adjustment in
accordance with Section&nbsp;15 hereof, an aggregate of 450,000 shares of Stock shall be available for the grant of all Awards made under the Plan; provided, that, the aggregate number of shares of Stock that may be granted as Awards to any single
individual over the duration of the Plan shall not exceed 150,000. Such shares shall be in addition to all shares of Stock issued or reserved for issuance pursuant to Awards granted under the Predecessor Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Any shares of Stock subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part,
shall again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein, shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares
are: (i)&nbsp;shares tendered in payment of an Option Price; (ii)&nbsp;shares delivered or withheld by the Company to satisfy any tax withholding obligation; or (iii)&nbsp;shares covered by a stock-settled Stock Appreciation Right or other Awards
that were not issued upon the settlement of the Award. If an Award is to be settled in cash, the number of shares of Stock on which the Award is based shall count toward the individual share limit set forth in this Section&nbsp;5(b). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) Stock delivered by the Company in settlement of Awards under the Plan may be (i)&nbsp;authorized and unissued Stock or Stock held in the
treasury of the Company or (ii)&nbsp;Stock that may be purchased on the open market, by private purchase or reacquired by the Company in any way. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) The Committee may, in its sole discretion, require a Participant to pay consideration for an Award in an amount and in a manner as the
Committee deems appropriate. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>6. Eligibility </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Plan Participation.</B> Awards may be made or granted to Eligible Persons selected by the Committee whose past, present and/or potential
contributions to the Company and/or one or more of its Subsidiaries have been, are or will be important to the success of the Company, to give them an opportunity to acquire a proprietary interest in the Company; provided however, that Incentive
Stock Options may only be granted to any Eligible Persons selected by the Committee who are full-time, salaried employees of the Company or a Subsidiary. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Substitute Awards.</B> The Committee, in its discretion, may also grant Awards in substitution for any stock or other equity incentive
awards previously granted by companies acquired by the Company or one of its Subsidiaries. Such substitute awards may be granted on such terms and conditions as the Committee deems appropriate in the circumstances, provided, however, that substitute
Incentive Stock Options shall be granted only in accordance with the requirements of the Code. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>7. Stock Options </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subject to Section&nbsp;6(a) hereof, the Committee is authorized to grant one or more Incentive Stock Options or Nonqualified Stock Options to
any Eligible Person. To the extent that any Stock Option intended by the Committee to qualify as an Incentive Stock Option does not so qualify, it shall constitute a separate <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option. Each
Option so granted shall be subject to the following conditions or to such other conditions as may be reflected in the applicable Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Option Price.</B> The exercise price (&#147;<I>Option Price</I>&#148;) per share of Stock for each Option shall be set by the Committee
at the time of grant but shall not be less than the Fair Market Value of a share of Stock on the Date of Grant. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Manner of Exercise
and Form of Payment.</B> Options that have become exercisable may be exercised by delivery of written notice of exercise to the Committee accompanied by payment of the Option Price. The Option Price shall be payable by the Participant either by
payment to the Company in cash, by wire transfer, by certified or bank check or by personal check (in each case made payable to the order of the Company) or, at the discretion of the Committee, through a combination of any one or more of the
following methods: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) delivery of shares of Stock then held by the Participant having an aggregate Fair Market Value equal to the Option
Price, provided that such shares of Stock have been held by the Participant for at least six (6)&nbsp;months and are delivered to the Company free and clear of any liens or encumbrances thereto; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) an election by the Participant to make a &#147;cashless exercise&#148; through a registered broker-dealer to sell all or a portion of the
shares of Stock acquired upon exercise of the Option and to deliver promptly to the Company the amount of sale proceeds sufficient to pay the aggregate Option Price (and any applicable tax withholding amount), provided that any such cashless
exercise shall be made only pursuant to such procedures that are, from time to time, deemed acceptable by the Committee; or </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) delivery
of shares of Stock otherwise receivable upon the exercise of the Option having an aggregate Fair Market Value equal to the Option Price (and any applicable tax withholding amount); provided, however, that in the event the Committee shall determine
in any given instance that the exercise of such Option by withholding shares otherwise receivable would be unlawful, unduly burdensome or otherwise inappropriate, the Committee may require that such exercise be accomplished in another acceptable
manner. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Notwithstanding anything in this Plan to the contrary, an Option may be exercised in accordance with the arrangements and procedures described in
this Section&nbsp;7(b) only to the extent such arrangements or procedures comply with Section&nbsp;14(o) hereof, Section&nbsp;13(k) of the Exchange Act and any other applicable laws, rules and regulations. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Option Vesting Periods; Duration and Expiration.</B> Options awarded under the Plan
shall vest and become exercisable in such manner and on such date or dates as may be determined by the Committee. Except as may otherwise be established by the Committee on the Date of Grant and reflected in an Award Agreement, each Option awarded
under the Plan shall be exercisable with respect to not more than thirty-three and <FONT STYLE="white-space:nowrap">one-third</FONT> percent (33.33%) of the shares of Stock subject thereto after the expiration of one (1)&nbsp;year following the Date
of Grant, and shall be exercisable as to an additional thirty-three and <FONT STYLE="white-space:nowrap">one-third</FONT> percent (33.33%) of the shares of Stock subject thereto after the expiration of each of the succeeding two (2)&nbsp;years, on a
cumulative basis, so that such Option, or any unexercised portion thereof, shall be fully exercisable after a period of three (3)&nbsp;years following the Date of Grant; provided, however, that each award of an Incentive Stock Option shall also
comply with the requirements of the Code and Section&nbsp;7(f) hereof. Options awarded under the Plan shall expire after such period, not to exceed ten (10)&nbsp;years with respect to Incentive Stock Options, as may be determined by the Committee
(the &#147;<I>Option Period</I>&#148;); provided, however, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which acceleration shall not affect the
terms and conditions of any such Option other than with respect to exercisability. If an Option is exercisable in installments, such installments or portions thereof that become exercisable shall remain exercisable until the Option expires. Unless
otherwise stated in the applicable Option Award Agreement, an Incentive Stock Option shall expire earlier than the end of the Option Period in the following circumstances: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) If prior to the end of the Option Period, the Participant shall undergo a Normal Termination, the Incentive Stock Option shall expire on
the earlier of the last day of the Option Period or the date that is three (3)&nbsp;months after the date of such Normal Termination. In such event, the Incentive Stock Option shall remain exercisable by the Holder until its expiration, only to the
extent the Option was exercisable at the time of such Normal Termination; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If the Participant dies prior to the end of the Option
Period and while still in the employ of the Company or such Participant becomes Disabled, the Incentive Stock Option shall expire on the earlier of the last day of the Option Period or the date that is one year after the date of death or Disability
of the Participant. In the event of death or Disability, the Incentive Stock Option shall remain exercisable by the Participant or the Holder or Holders to whom the Participant&#146;s rights under the Incentive Stock Option pass by will or the
applicable laws of descent and distribution until its expiration, only to the extent the Incentive Stock Option was exercisable by the Participant at the time of death or Disability. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In granting any <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option, the Committee may specify that such <FONT
STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option shall be subject to the restrictions set forth in Section&nbsp;7(c)(i) or (ii)&nbsp;herein with respect to Incentive Stock Options, or such other termination and cancellation provisions as
the Committee may determine. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Other Terms and Conditions.</B> In addition, each Option granted under the Plan shall
be evidenced by an Award Agreement, which shall contain such provisions as may be determined by the Committee and, except as may be specifically stated otherwise in such Award Agreement, which shall be subject to the following terms and conditions:
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Each Option issued pursuant to this Section&nbsp;7 or portion thereof that is exercisable shall be exercisable for the full amount or
for any part thereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) Each share of Stock purchased through the exercise of an Option issued pursuant to this Section&nbsp;7 shall be
paid for in full at the time of the exercise in the manner described in Section&nbsp;7(b) hereof. Each Option shall cease to be exercisable, as to any share of Stock, when the Holder purchases the share or when the Option expires. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Options granted pursuant to this Section&nbsp;7 shall be governed by the transfer restrictions described in Section&nbsp;18 hereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) Each Option issued pursuant to this Section&nbsp;7 shall vest and become exercisable by the Holder in accordance with the vesting schedule
established by the Committee and set forth in the Award Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) At the sole discretion of the Committee, each Award Agreement may
contain a provision that, upon demand by the Committee for such a representation, the Holder shall deliver to the Committee at the time of any exercise of an Option issued pursuant to this Section&nbsp;7 a written representation that the shares to
be acquired upon such exercise are to be acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the delivery of any shares issued upon exercise of an Option
issued pursuant to this Section&nbsp;7 shall be a condition precedent to the right of the Holder to purchase any shares of Stock. In the event certificates for Stock are delivered under the Plan with respect to which such investment representation
has been obtained, the Committee may cause a legend or legends to be placed on such certificates to make appropriate reference to such representation and to restrict transfer in the absence of compliance with applicable federal or state securities
laws. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vi) Each Incentive Stock Option Award Agreement shall contain a provision requiring the Holder to notify the Company in writing
immediately after the Holder makes a disqualifying disposition of any Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including any sale) of such Stock before the later of;
(A)&nbsp;two years after the Date of Grant of the Incentive Stock Option, or (B)&nbsp;one year after the date the Holder acquired the Stock by exercising the Incentive Stock Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vii) If the Fair Market Value exceeds the Option Price on the last day that an Option may be exercised under an Award Agreement, the affected
Participant shall be deemed to have exercised the vested portion of such Option in a cashless exercise under Section&nbsp;7(b)(ii) above without the requirement of any further action. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Buyout and Settlement Provisions.</B> The Committee may, in its sole discretion, offer to repurchase an Option previously granted, only
in extraordinary circumstances, and not in the ordinary course of business, based upon such terms and conditions as the Committee shall establish and communicate to the Holder of the Option at the time that such offer is made. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">12 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Incentive Stock Option Grants to 10% Stockholders. </B>Notwithstanding anything to
the contrary in this Section&nbsp;7, if an Incentive Stock Option is granted to a Participant who owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or of a Subsidiary, the Option Period
shall not exceed five (5)&nbsp;years from the Date of Grant of such Option and the Option Price shall be at least one hundred ten percent (110%) of the Fair Market Value (on the Date of Grant) of the Stock subject to the Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <B>$100,000 Per Year Limitation for Incentive Stock Options.</B> To the extent the aggregate Fair Market Value (determined as of the Date
of Grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Subsidiaries) exceeds $100,000, such excess Incentive Stock Options shall be
treated as <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) <B>Conversion of Incentive Stock Options into <FONT
STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options; Termination of Incentive Stock Options.</B> The Committee, at the written request of any Holder, may in its discretion, take such actions as may be necessary to convert such
Holder&#146;s Incentive Stock Options (or any installments or portions of installments thereof) that have not been exercised on the date of conversion into <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options at any time prior to the
expiration of such Incentive Stock Options, regardless of whether the Holder is an employee of the Company or a Subsidiary at the time of such conversion. Such actions may include, but not be limited to, extending the Option Period of such Incentive
Stock Options. At the time of such conversion, the Committee (with the consent of the Holder) may impose such conditions on the exercise of the resulting <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options as the Committee in its
discretion may determine, provided that such conditions shall not be inconsistent with the Plan. Nothing in the Plan shall be deemed to give any Holder the right to have such Holder&#146;s Incentive Stock Options converted into <FONT
STYLE="white-space:nowrap">Non-qualified</FONT> Stock Options, and no such conversion shall occur until and unless the Committee takes appropriate action. The Committee, with the consent of the Holder, may also terminate any portion of any Incentive
Stock Option that has not been exercised at the time of such termination. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>8. Stock Appreciation Rights </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee may authorize Awards to Participants of Stock Appreciation Rights. A Stock Appreciation Right is the right of a Participant to
receive from the Company an amount, which shall be determined by the Committee and shall be expressed as a percentage (not exceeding one hundred percent (100%)) of the Spread at the time of the exercise of such right. Stock Appreciation Rights may
be granted in tandem with an Option (at or, in the case of a <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option, after the award of an Option), or alone and unrelated to an Option. Stock Appreciation Rights in tandem with an Option
shall terminate to the extent that the related Option is exercised, and the related Option shall terminate to the extent that the tandem Stock Appreciation Rights are exercised. Any grant of Stock Appreciation Rights under the Plan shall be subject
to the transfer restrictions of Section&nbsp;18 hereof and shall be made upon terms and conditions as the Committee may determine in accordance with the following provisions: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Payment in Cash or Shares.</B> Any Award of Stock Appreciation Rights may specify that the amount payable upon the exercise of a Stock
Appreciation Right will be paid by the Company in cash, shares of Stock or any combination thereof or may grant to the Participant or reserve to the Committee the right to elect among those alternatives. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Vesting.</B> Any Award of Stock Appreciation Rights may specify (i)&nbsp;a waiting
period or periods before Stock Appreciation Rights shall become exercisable and (ii)&nbsp;permissible dates or periods on or during which Stock Appreciation Rights shall be exercisable, and any grant may provide for the earlier exercise of such
rights in the event of a termination of employment. Vesting may be further conditioned upon the attainment of such Performance Goals as may be established by the Committee. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Exercise Period.</B> No Stock Appreciation Right granted under the Plan may be exercised more than ten (10)&nbsp;years from the Date of
Grant. If a Spread exists on the last day that a Stock Appreciation Right may be exercised under an Award Agreement, the affected Participant shall be deemed to have exercised the vested portion of such Stock Appreciation Right without the
requirement of any further action. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Award Agreement.</B> Each Award of Stock Appreciation Rights shall be evidenced by an Award
Agreement containing such terms and conditions as the Committee may determine consistent with the Plan. Except as the Committee may deem inappropriate or inapplicable in the circumstances, Stock Appreciation Rights shall be subject to terms and
conditions substantially similar to those applicable to the Award of a <FONT STYLE="white-space:nowrap">Non-qualified</FONT> Stock Option. In addition, a Stock Appreciation Right related to an Option that can only be exercised during limited periods
following a Change in Control may entitle the Participant to receive an amount based upon the highest price paid or offered for Stock in any transaction relating to the Change in Control or paid during the thirty (30)&nbsp;day period immediately
preceding the occurrence of the Change in Control in any transaction reported in the stock market in which the Stock in normally traded. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>9.
Performance Share or Cash Units </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Award Grants.</B> The Committee is authorized to establish performance programs to be effective
over designated Award Periods determined by the Committee. The Committee may grant Awards of Performance Share Units or Performance Cash Units to Eligible Persons in accordance with such performance programs. The Committee shall determine the number
of Performance Share Units of Performance Cash Units to be awarded, if any, to each Eligible Person who is selected to receive such an Award. Before or within ninety (90)&nbsp;days after the beginning of each Award Period to which the Performance
Goals relate and on or before twenty-five percent (25%) of the period of service (as scheduled in good faith at the time the Performance Goals are established) has elapsed, the Committee shall establish written Performance Goals based upon one or
more Performance Criteria for such Award Period and a schedule relating to the accomplishment of the Performance Goals to the Awards to be earned by Participants, provided that the outcome is substantially uncertain at the time the Committee
actually establishes the Performance Goals. Performance Goals shall be based on one or more Performance Criteria, and may be determined on an individual basis or by categories of Participants. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Determination of Award.</B> At the completion of an Award Period, or at other times
as specified by the Committee, the Committee shall calculate the number of shares of Stock or amount of cash earned with respect to each Participant&#146;s Performance Share Unit or Performance Cash Unit, as applicable, by multiplying the number of
Performance Share Units and Performance Cash Units, as applicable, granted to the Participant by a performance factor representing the degree of attainment of the Performance Goals. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Payment of Performance Share or Cash Unit Awards.</B> Performance Share Unit or Performance Cash Unit Awards shall be payable in the
number of shares of Stock or that amount of cash determined in accordance with Section&nbsp;9(b). The amount of any payment made in cash shall be based upon the Fair Market Value of the Stock on the business day prior to payment. Payments of
Performance Cash Unit Awards shall be made between the March&nbsp;1 and April&nbsp;1 following completion of an Award Period. Performance Share Units shall be credited to the Participant&#146;s Performance Share Account between the March&nbsp;1 and
April&nbsp;1 following the completion of the Award Period and the requirements of any vesting schedule established by the Committee with respect to the Award have been satisfied. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <B>Elections.</B> Any election to have an Award or a portion of an Award credited to a Performance Share Account shall be made by a
Participant on a written Election Form and shall be effective with respect to Awards that may be earned on and after the commencement of the applicable Award Period (January 1st) following the Company&#146;s receipt of such Form, provided that such
Form is received by the December 24th immediately preceding the applicable January 1. Any such election shall be made only in increments of one percent (1%) of the Award (rounded to the nearest whole share) and shall be effective only for Awards
made during the year in which the election becomes effective. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <B>Performance Share Account.</B> The Company shall maintain on its
books and records a Performance Share Account to record its liability for future payments to the Participant or his or her beneficiary pursuant to the Plan. However, a Performance Share Account under the Plan shall constitute an unfunded
arrangement; the Company shall not be required to segregate or earmark any of its assets for the benefit of the Participant or his or her beneficiary, and the amount reflected in a Performance Share Account shall be available for the Company&#146;s
general corporate purposes and shall be available to the Company&#146;s general creditors. The amount reflected in a Performance Share Account shall not be subject in any manner to anticipation, alienation, transfer or assignment by the Participant
or his or her beneficiary, and any attempt to anticipate, alienate, transfer or assign the same shall be void. Neither the Participant nor his or her beneficiary may assert any right or claim against any specific assets of the Company in respect of
a Performance Share Account, and the Participant and his or her beneficiary shall have only a contractual right against the Company for the amount reflected in a Performance Share Account. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, in order to pay amounts that may become due under the Plan in respect of a Participant&#146;s Performance Share
Account, the Company may establish a grantor trust (hereinafter, the &#147;<I>Trust</I>&#148;) within the meaning of Section&nbsp;671 of the Code. Some or all of the assets of the Trust may be dedicated to providing benefits to the Participants
pursuant to the Plan, but, nevertheless, all assets of the Trust shall at all times remain subject to the claims of the Company&#146;s general creditors in the event of the Company&#146;s bankruptcy or insolvency. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) <B>Dividend Equivalents. </B>On every date on which a dividend or other distribution
is paid with respect to Common Stock, commencing with the first such payment date after the date on which a Performance Share Unit is credited to a Participant&#146;s Performance Share Account and continuing until such a Performance Share Unit is
either forfeited or paid out, there shall be credited to the Participant&#146;s Performance Share Account a Dividend Equivalent in respect of such Performance Share Unit. A Dividend Equivalent shall mean, with respect to a whole Performance Share
Unit credited to a Participant&#146;s Performance Share Account, a measure of value equal to the fractional share of Common Stock that could be purchased with the amount that would have been paid to the Participant as a dividend or other
distribution if the Participant had owned a whole share of Common Stock in lieu of said whole Performance Share Unit, the date of such deemed purchase being the dividend payment date. Dividend Equivalents are expressed in the form of Performance
Share Units. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) <B>Participant Not a Stockholder.</B> The Participant shall have no stockholder&#146;s rights with respect to any shares
of Common Stock in respect of which Performance Share Units are credited to his or her Performance Share Account. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) <B>Payments in
Respect of Performance Shares.</B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(A)<B>&nbsp;Fixed-Date Payment of Fully-Vested Performance Share Units.</B> A Participant may elect on
his or her Election Form to receive payment in a lump sum of some or all of the Performance Share Units awarded to the Participant in respect of an individual Award Period, but only after 100% of such Performance Share Units with respect to such
Award Period have become fully-vested Performance Share Units and been credited to his or her Performance Share Account after the completion of the applicable Award Period and the satisfaction of all vesting requirements to which such Performance
Share Units are subject pursuant to the applicable Award Agreement. A Participant may elect to receive payment of such Performance Share Units pursuant to one of two fixed date payment schedules, as follows: (1) 100% of such Performance Share Units
shall be distributed to the Participant forty-five (45)&nbsp;calendar days following the final vesting date on which 100% of such Performance Share Units become fully vested and credited to the Participant&#146;s Performance Share Account; or (2)
33.33% of such Performance Share Units shall be distributed to the Participant on each of the 1st, 2nd and 3rd anniversary dates following the final vesting date on which 100% of such Performance Share Units become fully vested and credited to the
Participant&#146;s Performance Share Account. Any such payment pursuant to this subsection (A)&nbsp;shall be made in a lump sum in the form of the number of shares of Common Stock equal to the number of whole Performance Share Units subject to the
Participant&#146;s election on the relevant Election Form, including related Dividend Equivalents, with any fractional Performance Share Unit being paid in a lump sum in cash determined on the basis of the value of a corresponding fractional share
of Common Stock on the business day preceding the respective dates of payment. For the avoidance of doubt, (X)&nbsp;any such payment pursuant to this subsection (A)&nbsp;shall be made only on the fixed date payment schedule selected by the
Participant on his or her Election Form, notwithstanding a Participant&#146;s Normal Termination that may occur on a date subsequent to the date of the Election Form (but </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>

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prior to the occurrence of one or more of such fixed payment dates) and that would otherwise result in a payment to the Participant pursuant to the provisions of subsection (B)&nbsp;below; and
(Y)&nbsp;shall be subject satisfaction of all vesting requirements to which such Performance Share Units are subject pursuant to the applicable Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(B)<B>&nbsp;Separation from Service for Reasons Other than Death.</B> In the event of a Participant&#146;s Normal Termination or termination
by reason of Disability, such Participant shall be entitled to receive payment in respect of the entire amount then credited to his or her Performance Share Account. For purposes of this Section&nbsp;9, a Normal Termination or termination by reason
of Disability shall be deemed to occur at the time the Participant experiences a separation from service, as that term is defined under Section&nbsp;409A of the Code. Such payment shall be made in a lump sum in the form of the number of shares of
Common Stock equal to the number of whole Performance Share Units then credited to the Participant&#146;s Performance Share Account, including related Dividend Equivalents, with any fractional Performance Share Unit being paid in a lump sum in cash
determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be transferred to the Participant sixty (60)&nbsp;days
after the Participant&#146;s separation from service. Notwithstanding the foregoing the foregoing sentence, if a Participant is &#147;a specified employee,&#148; as defined under Section&nbsp;409A of the Code, at the time of termination, payment
hereunder shall be made six (6)&nbsp;months following the date on which the Participant would have been paid, had he not been a specified employee on the date of termination. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(C)<B>&nbsp;Death While Employed by the Company.</B> In the event of a Participant&#146;s death prior to separation from service, the
Participant&#146;s beneficiary shall be entitled to receive payment in respect of the entire amount then credited to his or her Performance Share Account. Such payment shall be made in a lump sum in the form of the number of shares of Common Stock
equal to the number of whole Performance Share Units then credited to the Participant&#146;s Performance Share Account, with any fractional Performance Share Unit being paid in a lump sum in cash determined on the basis of the value of a
corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be transferred to the Participant&#146;s beneficiary sixty (60)&nbsp;days after the death of the
Participant. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(D)<B>&nbsp;Hardship Payment.</B> Notwithstanding anything to the contrary herein, if the Committee, upon written petition
of the Participant, determines, in the Committee&#146;s sole discretion, that the Participant has suffered an unforeseeable emergency (as hereinafter defined), the Participant shall be entitled to receive, at the time of such determination, an
amount not to exceed the lesser of (i)&nbsp;the amount reasonably necessary to satisfy the emergency need (including amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the
distribution), as determined by the Committee; and (ii)&nbsp;the number of Whole Performance Share Units then credited to the Participant&#146;s Performance Share Account. Such payment shall be made in a lump sum in cash. In the event of a hardship
payment in respect of the Participant&#146;s entire Performance Share Account, any fractional Performance Share Unit shall be paid in a lump sum in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the
business day preceding the date of </P>
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payment. For purposes of the foregoing, an &#147;<I>Unforeseeable Emergency</I>&#148; shall mean a severe financial hardship to the Participant resulting from an illness or accident of the
Participant, the Participant&#146;s spouse, the Participant&#146;s beneficiary, or the Participant&#146;s dependent (as defined in Section&nbsp;152 of the Code without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B); loss of the
Participant&#146;s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance) or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant or the need to pay for the funeral expenses of a spouse, a beneficiary or a department (as defined in Section&nbsp;152 of the Code without regard to Section&nbsp;152(a)(1), (b)(2), and (d)(1)(B)). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:13%; font-size:10pt; font-family:Times New Roman">(d) <B>Adjustment of Performance Goals.</B> The Committee may, during the Award Period, make such adjustments to Performance Goals as it may
deem appropriate, to compensate for, or reflect (i)&nbsp;extraordinary or <FONT STYLE="white-space:nowrap">non-recurring</FONT> events experienced during an Award Period by the Company or by any other corporation whose performance is relevant to the
determination of whether Performance Goals have been attained; (ii)&nbsp;any significant changes that may have occurred during such Award Period in applicable accounting rules or principles or changes in the Company&#146;s method of accounting or in
that of any other corporation whose performance is relevant to the determination of whether an Award has been earned; (iii)&nbsp;any significant changes that may have occurred during such Award period in tax laws or other laws or rules or
regulations that alter or affect the computation of the measures of Performance Goals used for the calculation of Awards; or (iv)&nbsp;any other factors that the Committee deems appropriate; provided, however, that no such change may increase the
amount of an Award that would otherwise be payable to any Covered Employee. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>10. Restricted Stock Awards </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Award of Restricted Stock.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) The Committee shall have the authority (A)&nbsp;to grant Restricted Stock Awards, (B)&nbsp;to issue or transfer Restricted Stock to
Eligible Persons, and (C)&nbsp;to establish terms, conditions and restrictions applicable to such Restricted Stock (including the Restricted Period and the satisfaction of Performance Goals, if applicable), which may differ with respect to each
Participant, the time or times at which Restricted Stock shall be granted or become vested and the number of shares to be covered by each grant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) The Holder of a Restricted Stock Award shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock
setting forth the restrictions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held in escrow rather than delivered to the Holder pending the release of the applicable restrictions, the Holder
additionally shall execute and deliver to the Company (A)&nbsp;an escrow agreement satisfactory to the Committee, and (B)&nbsp;the appropriate blank stock powers with respect to the Restricted Stock covered by such agreements. If a Holder shall fail
to execute a Restricted Stock Award Agreement and, if applicable, an escrow agreement and stock powers, within ten (10)&nbsp;days after receipt thereof from the Company, the Award shall be null and void. Subject to the restrictions set forth in
Section&nbsp;10(b) and any other conditions contained in the Award Agreement, the Holder shall generally have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock, and to receive
dividends paid thereon. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Upon the Award of Restricted Stock, the Committee shall cause a Stock certificate
registered in the name of the Holder to be issued and, if it so determines, deposited together with the Stock powers with an escrow agent designated by the Committee. If an escrow arrangement is used, the Committee shall cause the escrow agent to
issue to the Holder a receipt evidencing any Stock certificate held by it registered in the name of the Holder. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Restrictions.</B>
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Restricted Stock awarded to a Participant shall be subject to the transfer restrictions of Section&nbsp;18 hereof and to the following
restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A)&nbsp;if an escrow arrangement is used, the Holder shall not be entitled to delivery of the
Stock certificate; (B)&nbsp;the shares shall be subject to the restrictions on transferability set forth in the Award Agreement; and (C)&nbsp;the shares shall be subject to forfeiture to the extent provided in subparagraph (d)&nbsp;and the Award
Agreement and, to the extent such shares are forfeited, the Stock certificates shall be returned to the Company, and all rights of the Holder to such shares and as a shareholder shall terminate without further obligation on the part of the Company.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If the Committee intends to make a Participant&#146;s receipt of an Award of Restricted Stock under this Section&nbsp;10 subject to
the accomplishment of Performance Goals (which may be adjusted as provided in Section&nbsp;9(d) hereof), then before or within ninety (90)&nbsp;days after the beginning of each Restricted Period to which the Performance Goals relate and on or before
twenty-five percent (25%) of the period of service (as scheduled in good faith at the time the Performance Goals are established) has elapsed, the Committee shall establish written Performance Goals based upon financial objectives for the Company or
a Subsidiary for such Restricted Period and a schedule relating the accomplishment of the Performance Goals to the Award to be earned by the Participant, provided that the outcome is substantially uncertain at the time the Committee actually
establishes the Performance Goals. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) The Committee shall have the authority to remove any or all of the restrictions on the Restricted
Stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the Restricted Stock Award, such action is appropriate. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Restricted Period.</B> The Restricted Period of Restricted Stock shall commence on the Date of Grant and shall expire from time to time
as to that part of the Restricted Stock indicated in a schedule established by the Committee and set forth in the written Award Agreement. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Forfeiture Provisions.</B> Except to the extent determined by the Committee and
reflected in the underlying Award Agreement, in the event a Participant terminates employment with the Company during a Restricted Period for any reason, that portion of the Award with respect to which restrictions have not expired shall be
completely forfeited to the Company. In the event of such a forfeiture, the amount of an Award that would otherwise be payable shall be reduced, but not below zero, by the amount of any dividends previously paid to the Holder with respect to the
forfeited Restricted Stock and the Holder shall repay to the Company the amount of any dividends that would have reduced the amount of the Award to less than zero. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Delivery of Restricted Stock.</B> Upon the expiration of the Restricted Period with respect to any shares of Stock covered by a
Restricted Stock Award, the restrictions set forth in Section&nbsp;10(b) hereof and the Award Agreement shall be of no further force or effect with respect to shares of Restricted Stock that have not then been forfeited. If an escrow arrangement is
used, upon such expiration, the Company shall deliver to the Holder, or his or her beneficiary, without charge, the Stock certificate evidencing the shares of Restricted Stock that have not then been forfeited and with respect to which the
Restricted Period has expired (to the nearest full share) and any cash dividends or Stock dividends credited to the Holder&#146;s account with respect to such Restricted Stock and the interest thereon, if any. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Stock Restrictions.</B> Any certificate representing Restricted Stock awarded under the Plan shall, until the end of the Restricted
Period with respect to such Stock, bear a restrictive legend in such form as the Company deems appropriate. Stop transfer orders shall be entered with the Company&#146;s transfer agent and registrar against the transfer of legended securities. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>11. Other Stock-Based Awards. </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The
Committee may grant Other Stock-Based Awards, which are Awards (other than those described in Sections 7, 8, 9 and 10 of the Plan) that are based on, measured by or payable in Stock, to any Participant in such amounts and subject to such terms and
conditions, as the Committee shall determine. Other Stock-Based Awards may: (a)&nbsp;include the Award of unrestricted shares of Stock; (b)&nbsp;be made subject to the achievement of one or more Performance Goals or other conditions; and (c)&nbsp;be
payable in cash, shares of Stock or any combination of the foregoing, as the Committee shall determine. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>12.
<FONT STYLE="white-space:nowrap">Non-Competition</FONT> Provisions </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to such other conditions as may be established by the
Committee, in consideration of the granting of Awards under the terms of the Plan, the Committee, in its discretion, may include <FONT STYLE="white-space:nowrap">non-competition</FONT> provisions in the applicable Award Agreement, which may differ
with respect to each form of Award and each individual Participant. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>13. Change in Control </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>General Rule. </B>Except as otherwise provided in an Award Agreement, in the event of a Change in Control, the Committee may, but shall
not be obligated to take any one or more of the following actions, in each case without Participant consent (unless otherwise specified): (i) accelerate, vest or cause the restrictions to lapse with respect to, all or any portion of an Award;
(ii)&nbsp;cancel Awards for a cash payment equal to their fair value, net of applicable tax withholdings (each as determined in the sole discretion of the Committee) which, in the case of </P>
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Options and Stock Appreciation Rights, shall be deemed to be equal to the excess, if any, of the consideration to be paid in connection with the Change in Control to holders of the same number of
shares of Stock subject to such Options or Stock Appreciation Rights (or, if no consideration is paid in any such transaction, the Fair Market Value of the shares of Stock subject to such Options or Stock Appreciation Rights) over the aggregate
Option Price (in the case of Options) or Base Price (in the case of Stock Appreciation Rights); (iii) provide for the issuance of replacement Awards that will substantially preserve the otherwise applicable terms of any affected Awards previously
granted hereunder as determined by the Committee in its sole discretion; (iv)&nbsp;provide that such Awards shall be assumed, or substantially equivalent awards shall be provided in substitution therefore, by the acquiring or succeeding entity (or
an affiliate thereof); (v) upon written notice to the Holders, provide that the Holders&#146; unexercised Options or Stock Appreciation Rights will terminate immediately prior to the consummation of such Change in Control unless exercised within a
specified period following the date of such notice; (vi)&nbsp;provide that outstanding Awards shall become exercisable in whole or in part prior to or upon the consummation of the Change in Control; (vii)&nbsp;provide that, in connection with a
liquidation or dissolution of the Company, Awards shall convert into the right to receive liquidation proceeds net of the exercise price thereof any applicable tax withholdings; (viii)&nbsp;terminate Options or Stock Appreciation Rights without
providing accelerated vesting; or (ix)&nbsp;take any other action with respect to the Awards that the Committee in its sole discretion deems appropriate. For the avoidance of doubt, the treatment of Awards upon a Change in Control may vary among
Participants and types of Awards in the Committee&#146;s sole discretion. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Settlement of Awards Subject to Performance Goals upon a
Change in Control.</B> Awards subject to satisfying a Performance Goal or Goals shall be settled upon a Change in Control, provided such Change in Control constitutes a change in the ownership or effective control of the Company, or in the ownership
of a substantial portion of the assets of the Company, within the meaning of Section&nbsp;409A. The settlement amount shall be determined by the Committee in its sole discretion based upon the extent to which the Performance Goals for any such
Awards have been achieved after evaluating actual performance from the start of the Award Period until the date of the Change in Control and the level of performance anticipated with respect to such Performance Goals as of the date of the Change in
Control. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Related Matters.</B> In taking any of the actions permitted under this Section&nbsp;13, the Committee shall not be
obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type, identically. Any determinations required to carry out the foregoing provisions of this Section&nbsp;13, including but not limited to the fair value of
other consideration received by Holders of Awards and whether substantially equivalent Awards have been substituted, shall be made by the Committee acting in its sole discretion. In connection with any action or actions taken by the Committee in
respect of the Awards and in connection with a Change in Control, the Committee may require such acknowledgments of satisfaction and releases from Participants as it may determine. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>14. General Provisions </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Written Agreements; Committee Determinations.</B> Each award granted under the Plan shall be confirmed by, and shall be subject to the
terms of, the Award Agreement executed by the Company and the Participant. The Committee may terminate any Award made under the Plan if the Agreement relating thereto is not executed and returned to the Company within ten (10)&nbsp;business days
after the Award Agreement has been delivered to the Participant for his or her execution. The Committee&#146;s determinations under the Plan need not be uniform and may be made by it selectively among Eligible Persons who receive Awards. Without
limiting the generality of the foregoing, the Committee shall be entitled to make <FONT STYLE="white-space:nowrap">non-uniform</FONT> and selective determinations, amendments and adjustments, and to enter into
<FONT STYLE="white-space:nowrap">non-uniform</FONT> and selective Award Agreements. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Additional Provisions of an Award.</B> Awards
under the Plan also may be subject to such other provisions (whether or not applicable to the benefit awarded to any other Participant) as the Committee determines appropriate including, without limitation, provisions for the forfeiture of or
restrictions on resale or other disposition of shares of Stock acquired under any Award, provisions giving the Company the right to repurchase shares of Stock acquired under any Award in the event the Participant elects to dispose of such shares,
and provisions to comply with Federal and state securities laws and Federal and state tax withholding requirements. Any such provisions shall be reflected in the applicable Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Shareholder Rights.</B> Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to
have any of the rights of a holder with respect to, any shares of Stock subject to such Award unless and until such Participant has satisfied all requirements for exercise of the Award pursuant to its terms and no adjustment shall be made for
dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common Stock certificate is issued, except as provided in Section&nbsp;15
hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Government and Other Regulations.</B> The obligation of the Company to make payment of Awards in Stock or otherwise shall
be subject to: (i)&nbsp;all applicable laws, rules and regulations and such approvals by any governmental agencies as may be required, including, without limitation, the Securities Act and the Exchange Act, and (ii)&nbsp;the rules and regulations of
the Nasdaq Stock Market, LLC or any securities exchange on which the Company&#146;s Common Stock may be listed. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to
sell and shall be prohibited from offering to sell or selling any shares of Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the
Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully
complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Stock to be offered or sold under the Plan. If the shares of Stock offered for sale or sold under the Plan are offered or sold
pursuant to an exemption from registration under the Securities Act, such shares of Stock may be deemed &#147;restricted securities&#148; as defined in Rule 144 under the Securities Act. The Company may restrict the transfer of such shares and may
legend the Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Insiders; Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> Matters.</B> It is the
intent of the Company that Awards pursuant to the Plan shall qualify for the exemption provided by Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> under the Exchange Act. With respect to participation by Insiders in the Plan, at any time that any
class of equity security of the Company is registered pursuant to Section&nbsp;12 of the Exchange Act, the Plan shall be administered by the Committee in compliance with all applicable requirements of Rule
<FONT STYLE="white-space:nowrap">16b-3.</FONT> To the extent that any provision of the Plan or action by the Committee does not comply with applicable requirements of Rule <FONT STYLE="white-space:nowrap">16b-3,</FONT> it shall be deemed inoperative
to the extent permitted by law and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> is revised or replaced, the Committee may exercise its
discretion to modify this Plan in any respect necessary to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Claim to Awards and Employment or Service Rights.</B> No employee or other person shall have any claim or right to be granted an Award
under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or
service of the Company or any Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <B>Designation and Change of Beneficiary.</B> Each Participant may file with the Committee a
written designation of one or more persons as the beneficiary who shall be entitled to receive the rights or amounts payable with respect to an Award due under the Plan upon his or her death. A Participant may, from time to time, revoke or change
his or her beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless received by the Committee prior to the Participant&#146;s death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by the
Participant, the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) <B>Payments To Persons Other Than Participants. </B>If the Committee shall find that any person to whom any amount is payable under the
Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative)
may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person
otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) <B>No Liability of Committee Members.</B> No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on such member&#146;s behalf in such member&#146;s capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the
Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be </P>
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allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection
with the Plan unless arising out of such person&#146;s own fraud or willful bad faith; provided, however, that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company&#146;s Amended and Restated Certificate of Incorporation or Amended and Restated <FONT
STYLE="white-space:nowrap">By-Laws,</FONT> as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j) <B>Governing Law.</B> Except as to matters of federal law, the Plan and the rights of all Holders claiming hereunder, shall be governed by
and construed in accordance with the internal laws of the State of Connecticut without regard to the principles of conflicts of law thereof. All outstanding Awards granted under the Predecessor Plan shall continue to be governed and interpreted
solely under the terms of the Predecessor Plan and shall not be subject to the terms hereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(k) <B>Funding. </B>Except as otherwise
provided in Section&nbsp;9(c)(ii) above, no provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are
made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Holders shall have
no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other
employees under general law. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(l) <B>Reliance on Reports.</B> Each member of the Committee and each member of the Board shall be fully
justified in relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Subsidiaries and upon any other
information furnished in connection with the Plan by any person or persons other than such member. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(m) <B>Relationship To Other Benefits;
Other Plans.</B> Any Award granted under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement plan of the Company or any Subsidiary and shall not affect any benefits under any other employee benefit plan
now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation, except as otherwise specifically provided in any other employee benefit plan or as maybe required by applicable law. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(n) <B>Titles and Headings.</B> The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of
any conflict, the text of the Plan, rather than such titles or headings shall control. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(o) <B>Prohibition Against Loans.</B> Anything in
the Plan to the contrary notwithstanding, neither the Company nor any Subsidiary shall make a loan to any officer, director, employee or consultant of the Company or any Subsidiary for the purpose of obtaining the benefits of any Award under the
Plan. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(p) <B>Certain Terminations of Employment, Hardship and Approved Leaves of Absence;
Employment Transfers.</B> Notwithstanding any other provision of the Plan to the contrary, in the event of a Participant&#146;s termination of employment (including by reason of death, disability or retirement) or in the event of hardship or other
special circumstances, the Committee may in its sole discretion take any action that it deems to be equitable under the circumstances or in the best interests of the Company, including, without limitation, waiving or modifying any limitation or
requirement with respect to any Award under the Plan. The Committee shall have the discretion to determine whether and to what extent the vesting of Awards shall be tolled during any leave of absence, paid or unpaid; provided however, that in the
event of military leave, vesting shall toll during any unpaid portion of such leave, provided that, upon a Participant&#146;s returning from military leave (under conditions that would entitle him or her to protection upon such return under the
Uniform Services Employment and Reemployment Rights Act), he or she shall be given vesting credit with respect to the Award to the same extent as would have applied had the Participant continued to provide services to the Company throughout the
leave on the same terms as he or she was providing services immediately prior to such leave. Any actions taken by the Committee shall be taken consistent with the requirements of Section&nbsp;409A of the Code and, with respect to Qualified
Performance-Based Awards, Section&nbsp;162(m) of the Code. No termination of employment by an Employee shall be deemed to result from a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one
Subsidiary to another. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(q) <B>Tolling.</B> In the event a Participant is prevented from exercising an Option or Stock Appreciation Right
or the Company is unable to settle an Award due to either any trading restrictions applicable to the shares of Stock, the Participant&#146;s physical infirmity or administrative error by the Company relied upon and not caused by the Participant,
then unless otherwise determined by the Committee, consistent with applicable law, or as may be advisable to secure favorable tax treatment, the length of time applicable to any such restriction, condition or event shall toll any exercise period
(i)&nbsp;until such restriction lapses, (ii)&nbsp;until the Participant (or his or her representative) is able to exercise the Award or (iii)&nbsp;until such error is corrected, as applicable. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(r) <B>No Duty to Inform Regarding Exercise Rights.</B> Neither the Company, any Subsidiary, the Committee nor the Board shall have any duty to
inform a Participant of the pending expiration of the period in which a Stock Appreciation Right may be exercised or in which an Option may be exercised. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(s) <B>Limitations Period.</B> Any person who believes he or she is being denied any benefit or right under the Plan may file a written claim
with the Committee. Any claim must be delivered to the Committee within forty-five (45)&nbsp;days of the specific event giving rise to the claim. Untimely claims will not be processed and shall be deemed denied. The Committee, or its designated
agent, will notify the Participant of its decision in writing as soon as administratively practicable. Claims not responded to by the Committee in writing within ninety (90)&nbsp;days of the date the written claim is delivered to the Committee shall
be deemed denied. The Committee&#146;s </P>
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decision shall be final, conclusive and binding on all persons. No lawsuit relating to the Plan may be filed before a written claim is filed with the Committee and is denied or deemed denied, and
any lawsuit must be filed within one year of such denial or deemed denial or be forever barred. The venue for any lawsuit shall be Hartford, Connecticut. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(t) <B>No Fractional Shares.</B> No fractional shares of Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine
whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional shares of Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(u) <B>Use of Proceeds from Stock.</B> Proceeds from the sale of Stock pursuant to Awards, or upon exercise thereof, shall constitute general
funds of the Company. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>15. Changes in Capital Structure </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Awards granted under the Plan and any Award Agreements shall be subject to equitable adjustments, as determined by the Committee in its
sole discretion, as to the number, price or kind of a share of Stock or other consideration subject to such Awards; (i)&nbsp;in the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason of stock
dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the Date of Grant of any such Award, (ii)&nbsp;in the
event of any change in applicable laws or any change in circumstances that results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan, or (iii)&nbsp;upon the occurrence
of any other event that otherwise warrants equitable adjustment because it interferes with the intended operation of the Plan. In addition, in the event of any such corporate or other event, the aggregate number of shares of Stock available under
the Plan and the maximum number of shares of Stock with respect to which any one person may be granted in connection with Awards shall be appropriately adjusted by the Committee, consistent with applicable law, whose determination shall be
conclusive. In addition, consistent with applicable law, including but not limited to the requirements of Sections 422 and 409A of the Code, in the event of any such transaction or event, the Committee may provide in substitution for any or all
outstanding Awards under the Plan such alternative consideration as it may in good faith determine to be equitable under the circumstances and may require in connection therewith the cancellation or surrender of all Awards so replaced. In the case
of Substitute Awards, the Committee may make such adjustments, not inconsistent with the terms of the Plan, in the terms of Awards as it shall deem appropriate in order to achieve reasonable comparability or other equitable relationship between the
assumed awards and the Awards granted under the Plan as so adjusted. The terms of this Section&nbsp;15&nbsp;may be varied by the Committee in any particular Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) The existence of outstanding Awards shall not affect in any way the right or power of the Company or its shareholders to make or authorize,
without limitation, any or all adjustments, reclassifications, recapitalizations, reorganizations or other changes in the Company&#146;s capital structure or its business, or any merger or consolidation of the Company, or any issue of Stock, or any
issue of bonds, debentures, preferred or preference stock or other capital stock ahead of or affecting the Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or
business, or any other corporate act or proceeding, whether of a similar character or otherwise. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>16. Tax Matters </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Tax Withholding.</B> Notwithstanding any other provision of the Plan, the Company or a Subsidiary, as appropriate, shall have the right
to deduct from any payment of any kind otherwise due to a Participant, cash and/or Stock, valued at Fair Market Value on the date of payment, in an amount necessary to satisfy all Federal, state or local taxes as required by law to be withheld with
respect to such payment (whether so required to secure for the Company an otherwise available tax deduction or otherwise) and, in the case of Awards paid in Stock, the Holder may be required to pay to the Company prior to delivery of such Stock, the
amount of any such taxes that the Company is required to withhold, if any, with respect to such Stock. The obligations of the Company under the Plan shall be conditioned on satisfaction of all such withholding obligations. The Company shall accept
shares of Stock of equivalent Fair Market Value in payment of such withholding tax obligations if the Holder of the Award elects to make payment in such manner. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Section 422 Compliance.</B> If any of the terms or provisions of the Plan or an Award Agreement conflict with the requirements of
Section&nbsp;422 of the Code, then such terms or provisions shall be deemed inoperative to the extent they so conflict with such requirements. Additionally, if this Plan or any Award Agreement does not contain any provision required to be included
herein under Section&nbsp;422 of the Code, such provision shall be deemed to be incorporated herein and therein with the same force and effect as if such provision had been set out at length herein and therein. If any of the terms or provisions of
any Award Agreement conflict with any terms or provisions of the Plan, then such terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of the Plan. Additionally, if any Award Agreement does not contain
any provision required to be included therein under the Plan, such provision shall be deemed to be incorporated therein with the same force and effect as if such provision had been set out at length therein. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Section 409A Compliance.</B> The Plan is intended to comply with Section&nbsp;409A of the Code to the extent subject thereto, and,
accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the &#147;short-term deferral period&#148; as defined in
Section&nbsp;409A of the Code shall not be treated as deferred compensation unless applicable laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under
Section&nbsp;409A of the Code, if a Participant is a &#147;specified employee&#148; for purposes of Section&nbsp;409A as of the date of his or her termination of employment, amounts that would otherwise be payable and benefits that would otherwise
be provided pursuant to the Plan during the six (6)&nbsp;month period immediately following the Participant&#146;s termination of employment shall instead be paid in a lump sum on the first payroll date after the
<FONT STYLE="white-space:nowrap">six-month</FONT> anniversary of the Participant&#146;s separation from service (or the Participant&#146;s death, if earlier) as that term is defined under Section&nbsp;409A of the Code. Notwithstanding the foregoing,
neither the Company nor the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant under Section&nbsp;409A of the Code and neither the Company nor the Committee will have any
liability to any Participant for such tax or penalty. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Parachute Payments.</B> Notwithstanding any other provision of this Plan or of any
other agreement, contract, or understanding heretofore or hereafter entered into by a Participant with the Company or any Subsidiary of the Company, except an agreement, contract, or understanding that expressly addresses Section&nbsp;280G or
Section&nbsp;4999 of the Code (an &#147;<I>Other Agreement</I>&#148;), and notwithstanding any formal or informal plan or other arrangement for the direct or indirect provision of compensation to the Participant (including groups or classes of
Participants or beneficiaries of which the Participant is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to or for the Participant (a &#147;<I>Benefit Arrangement</I>&#148;), if the Participant is
a &#147;disqualified individual,&#148; as defined in Section&nbsp;280G(c) of the Code, any Award held by that Participant and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i)&nbsp;to the
extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights, payments, or benefits to or for the Participant under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or
benefit to the Participant under this Plan to be considered a &#147;parachute payment&#148; within the meaning of Section&nbsp;280G(b)(2) of the Code as then in effect (a &#147;<I>Parachute Payment</I>&#148;) and (ii)&nbsp;if, as a result of
receiving a Parachute Payment, the aggregate <FONT STYLE="white-space:nowrap">after-tax</FONT> amounts received by the Participant from the Company under this Plan, all Other Agreements, and all Benefit Arrangements would be less than the maximum <FONT
STYLE="white-space:nowrap">after-tax</FONT> amount that could be received by the Participant without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of any such right to exercise, vesting,
payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Participant under any Other Agreement or any Benefit Arrangement would cause the Participant to be considered to have received a Parachute
Payment under this Plan that would have the effect of decreasing the <FONT STYLE="white-space:nowrap">after-tax</FONT> amount received by the Participant as described in clause (ii)&nbsp;of the preceding sentence, then the Participant shall have the
right, in the Participant&#146;s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit
to the Participant under this Plan be deemed to be a Parachute Payment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Section 162(m) Exemption.</B> When granting any Performance
Cash Unit, Performance Share Unit, Restricted Stock, or other Award (other than Options or Stock Appreciation Rights that meet the definition of a Qualified Performance-Based Award), the Committee may designate as a Qualified Performance-Based Award
any such Award that the Committee determines in good faith meets the requirements of a Qualified Performance Based Award, based upon the Committee&#146;s determination that the recipient is or may be a Covered Employee with respect to such Award and
that the Committee wishes such Award to qualify for the Section&nbsp;162(m) Exemption. The payment of compensation pursuant to Awards designated as Qualified Performance-Based Awards (other than Options or Stock Appreciation Rights) to a Covered
Employee for any calendar year shall not exceed $350,000. The maximum number of shares of Stock underlying Options or Stock Appreciation Rights that may be awarded to a Covered Employee for any calendar year shall not exceed 35,000 shares and their
exercise price shall be the Fair Market Value of the Stock on the Date of Grant. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) Neither the Company nor any Subsidiary nor any director, officer, agent, representative,
or employee of either, guarantees to the Participant or any other Person any particular tax consequences as a result of the grant of, exercise of rights under, or payment in respect of an Award, including but not limited to that an Option granted as
an Incentive Stock Option has or will qualify as an &#147;incentive stock option&#148; within the meaning of Section&nbsp;422 of the Code or that the provisions and penalties of Section&nbsp;409A of the Code pertaining to <FONT
STYLE="white-space:nowrap">non-qualified</FONT> plans of deferred compensation, will or will not apply. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>17. Forfeiture and Recoupment </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Clawback Provision.</B> Notwithstanding any provision in the Plan to the contrary, any &#147;incentive- based compensation&#148; within
the meaning of Section&nbsp;10D of the Exchange Act will be subject to clawback by the Company in the manner required by Section&nbsp;10D(b)(2) of the Exchange Act, as determined by the applicable rules and regulations promulgated thereunder from
time to time by the Securities and Exchange Commission and by any national securities exchange on which the Stock trades. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b)
<B>Forfeiture Events. </B>The Committee may specify in an Award Agreement that the Participant&#146;s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of
certain events, in addition to applicable vesting conditions of an Award. Such events may include, without limitation, breach of <FONT STYLE="white-space:nowrap">non-competition,</FONT> <FONT STYLE="white-space:nowrap">non-solicitation,</FONT>
confidentiality, or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant, a termination of the Participant&#146;s employment or service for cause, or other conduct by the Participant that
is detrimental to the business or reputation of the Company and/or its Subsidiaries. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>18. Transfer Restrictions </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Transfer Restrictions.</B> Except as otherwise provided in Sections 18(b) and 18(d) below, no Award granted under the Plan shall be
transferable by a Participant other than upon death by will or the laws of descent and distribution, and Options and Stock Appreciation Rights shall be exercisable during a Participant&#146;s lifetime only by the Participant or, in the event of the
Participant&#146;s legal incapacity, by his or her guardian or legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law. Any attempt to transfer an Award in violation of the Plan shall render such
Award null and void. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Limited Transfer Rights. </B>Except as other required by applicable law, the Committee may expressly provide
in an Award Agreement that a Participant may transfer such Award (other than an Incentive Stock Option or an Award made under Section&nbsp;9 of the Plan), in whole or in part, to a Family Member, a trust for the exclusive benefit of Family Members,
a partnership or other entity in which all the beneficial owners are Family Members, or any other entity affiliated with the Participant that may be approved by the Committee. Subsequent transfers of Awards shall be prohibited except in accordance
with this Section&nbsp;18(b). All terms and conditions of the Award, including provisions relating to the termination of the Participant&#146;s employment or service with the Company or a Subsidiary, shall continue to apply following a transfer made
in accordance with this Section&nbsp;18(b). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Additional Restrictions on Transfer.</B> Any Award made under the Plan may provide
that all or any part of the shares of Stock that are to be issued or transferred by the Company upon exercise, vesting or settlement shall be subject to further restrictions upon transfer. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Domestic Relations Orders. </B>Notwithstanding the foregoing provisions of this Section&nbsp;18, any Award made under the Plan may be
transferred as necessary to fulfill any domestic relations order as defined in Section&nbsp;414(p)(1)(B) of the Code. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>19. Repricings Prohibited
</B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding anything to the contrary in Section&nbsp;21 hereof, the terms of outstanding Awards shall not be amended to
(a)&nbsp;reduce the Option Price of outstanding Options or Base Price of outstanding Stock Appreciation Rights or (b)&nbsp;cancel outstanding Options or Stock Appreciation Rights in exchange for cash, other Awards or Options or Stock Appreciation
Rights with an Option Price or Base Price that is less than the Option Price or Base Price of the original Options or Stock Appreciation Rights without stockholder approval, provided that nothing herein shall prevent the Committee from taking any
action provided for in Section&nbsp;15 hereof. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>20. <FONT STYLE="white-space:nowrap">Non-exclusivity</FONT> of the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed
as creating any limitations on the power of the Board to adopt such other additional incentive arrangements (subject to stockholder approval if such approval is required) as it may deem desirable, including, without limitation, the awarding of
Stock, Options, other Awards or cash otherwise than under the Plan, and such arrangements may be either applicable generally or applicable only in specific cases. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>21. Termination or Suspension of Plan; Award and Plan Amendments </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Termination; Suspension.</B> The Committee or the Board may at any time or from time to time terminate the Plan, suspend the Plan and,
if suspended, reinstate, the Plan in whole or in part. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Award Amendments.</B> Subject to Section&nbsp;19 hereof, the Committee or
the Board may, at any time, cancel, reduce, amend or otherwise modify outstanding Awards (and the terms of the related Award Agreement), including for the purposes of modifying the time or manner of vesting, or the term of, any outstanding Award;
provided however, that no such amendment or modification shall impair the rights of the Holder of any Award outstanding on the date of such amendment or modification of such Award, as the case may be, without the Holder&#146;s prior written consent;
and provided, further, that no such consent shall be required if (i)&nbsp;the Committee, as the case may be, determines in its sole discretion and prior to the date of any Change of Control that such amendment or modification is either required or
advisable in order for the Company, the Plan or the Award to satisfy any present or future law, rule or regulation, including without limitation the provisions of Section&nbsp;409A of the Code, or to meet the requirements of, or avoid adverse
financial accounting consequences under, any accounting </P>
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standard applicable to the Company, or (ii)&nbsp;the Committee, as the case may be, determines in its sole discretion and prior to the date of any Change of Control that such amendment or
modification is not reasonably likely to significantly diminish the benefits provided under the Award, or that any such diminution of benefits has been adequately compensated. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Plan Amendments.</B> The Board may at any time amend the Plan; provided, however, that any such amendment shall be contingent on
obtaining the approval of the stockholders of the Company if the Committee determines in its sole discretion that such approval is necessary to comply with any requirement of law, including the requirements for qualification of Incentive Stock
Options or rule of any national securities exchange or automated quotation system on which the Company&#146;s equity securities are traded or quoted; and provided further that the Committee shall not take any of the following actions without the
prior approval of the Company&#146;s stockholders at a meeting duly held in accordance with the applicable laws of the state of Connecticut: (i)&nbsp;amending the Plan to repeal the prohibition against repricing set forth in Section&nbsp;19 hereof;
(ii)&nbsp;expanding the definition of &#147;Eligible Person&#148; under the Plan; (iii)&nbsp;increasing the aggregate number of shares of Stock reserved and available for issuance under the Plan set forth in Section&nbsp;5(a) hereof (except as
otherwise provided in Section&nbsp;15 hereof); (iv) increasing the individual Award limitation set forth in Section&nbsp;5(a) hereof; (v)&nbsp;decreasing the Option Price of an Option or the Base Price of a Stock Appreciation Right to be awarded
under the Plan to any amount lower than 100% of the Stock&#146;s Fair Market Value on the date of the Award; (vi)&nbsp;extending the maximum duration of an Award of an Option or Stock Appreciation Right under the Plan; or (vii)&nbsp;extending the
duration of the Plan beyond that specified in Section&nbsp;3 hereof. Notwithstanding any other provision of the Plan or any Award Agreement to the contrary, in its sole and absolute discretion and without the consent of any Participant, the Board
may amend the Plan, and the Committee may amend any Award Agreement, to take effect retroactively or otherwise as it deems necessary or advisable for the purpose of conforming the Plan or such Award Agreement to any present or future law, regulation
or rule applicable to the Plan, including, but not limited to, Section&nbsp;409A of the Code. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">* * * </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">As adopted by the Board of Directors of Connecticut Water Service, Inc. on March&nbsp;12, 2014. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">31 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXHIBIT 99.2 </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CONNECTICUT WATER SERVICE, INC. 2004 PERFORMANCE STOCK PROGRAM, </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>PROPOSED TO BE EFFECTIVE AS OF APRIL&nbsp;23, 2004 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>1. Purpose </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The purpose of the
Connecticut Water Service, Inc. 2004 Performance Stock Program (the &#147;<I>Plan</I>&#148;) is to strengthen Connecticut Water Service, Inc., a Connecticut corporation (the &#147;<I>Company</I>&#148;) and its Subsidiaries (as hereinafter defined),
by providing an incentive to their employees, officers, consultants and directors and thereby encouraging them to devote their abilities and industry to the success of the business enterprise of the Company and its Subsidiaries. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">It is intended that this purpose be achieved by extending to employees (including future employees who have received a formal written offer of
employment), officers, consultants and <FONT STYLE="white-space:nowrap">non-employee</FONT> directors of the Company and its Subsidiaries an added long-term incentive for high levels of performance and unusual efforts through the grant of Incentive
Stock Options, Nonqualified Stock Options, Restricted Stock Awards, Performance Share Unit or Performance Cash Unit Awards (as each term is herein defined), or any combination of the foregoing. The various types of long-term incentive awards that
may be provided under the Plan will enable the Company to respond to changes in compensation practices, securities and tax laws, accounting regulations and the size and diversity of its businesses. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>2. Definitions </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following definitions
shall be applicable throughout the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) &#147;<I>Award</I>&#148; means, individually or collectively, any Incentive Stock Option,
Nonqualified Stock Option, Restricted Stock Award, Performance Share Unit or Performance Cash Unit under the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) &#147;<I>Award
Agreement</I>&#148; means the agreement between the Company and a Participant who has been granted an Award which defines the rights and obligations of the parties with respect to such Award. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) &#147;<I>Award Period</I>&#148; means a period of time within which performance is measured for the purpose of determining whether an Award
of Performance Share Units or Performance Cash Units has been earned. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) &#147;<I>Board</I>&#148; means the Board of Directors of the
Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) &#147;<I>Code</I>&#148; means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code
shall be deemed to include any amendments or successor provisions to such section and any rules, regulations and interpretations under such section. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) &#147;<I>Committee</I>&#148; means the Compensation Committee of the Board, or, if the
Board so directs, the full Board or another committee appointed by the Board to administer the Plan as described in Section&nbsp;4. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g)
&#147;<I>Common Stock</I>&#148; means the common stock, without par value, of the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) &#147;<I>Company</I>&#148; means
Connecticut Water Service, Inc. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) &#147;<I>Covered Employee</I>&#148; means a Participant whom the Committee designates, for each Award
Period or Restricted Period, as applicable, or as the recipient of an Option in order to qualify for the Section&nbsp;162(m) Exemption. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(j) &#147;<I>Date of Grant</I>&#148; means the date on which the granting of an Award is authorized or such other date as may be specified in
such authorization. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(k) &#147;<I>Disability</I>&#148; means &#147;permanent and total disability&#148; as defined in Section&nbsp;22(e)(3)
of the Code. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(l) &#147;<I>Dividend Equivalent</I>&#148; shall have the meaning set forth in Section&nbsp;8(c)(iii) hereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(m) &#147;<I>Effective Date</I>&#148; shall have the meaning set forth in Section&nbsp;3 hereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(n) &#147;<I>Eligible Person</I>&#148; means any of the following individuals who is designated by the Committee as eligible to receive Options
or other Awards subject to the conditions set forth herein: (i)&nbsp;any director, officer or employee of the Company or a Subsidiary, (ii)&nbsp;any individual to whom the Company or a Subsidiary has extended a formal, written offer of employment,
or (iii)&nbsp;any consultant or advisor to the Company or a Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(o) &#147;<I>Exchange Act</I>&#148; means the Securities Exchange
Act of 1934, as amended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(p) &#147;<I>Fair Market Value</I>&#148; on a given date means (i)&nbsp;if the Stock is listed on a national
securities exchange, the mean between the highest and lowest sale prices reported as having occurred on the primary exchange with which the Stock is listed and traded on the date prior to such date, or, if there is no such sale on that date, then on
the last preceding date on which such a sale was reported; (ii)&nbsp;if the Stock is not listed on any national securities exchange but is quoted in the National Market System of the National Association of Securities Dealers Automated Quotation
System on a last sale basis, the average between the high bid price and low ask price reported on the date prior to such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii)&nbsp;if
the Stock is not listed on a national securities exchange nor quoted in the National Market System of the National Association of Securities Dealers Automated Quotation System on a last sale basis, the amount determined by the Committee to be the
fair market value based upon a good faith attempt to value the Stock accurately. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(q) &#147;<I>Holder</I>&#148; means a Participant who has
been granted an Award, or a permitted transferee of such a Participant. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(r) &#147;<I>Incentive Stock Option</I>&#148; means an Option granted by the Committee to a
Participant under the Plan which is designated by the Committee as an &#147;incentive stock option&#148; within the meaning of Section&nbsp;422 of the Code. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(s) &#147;<I>Nonqualified Stock Option</I>&#148; means an Option granted under the Plan which is not designated as an Incentive Stock Option.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(t) &#147;<I>Normal Termination</I>&#148; means termination of employment or service with the Company or a Subsidiary other than by reason
of death or Disability. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(u) &#147;<I>Option</I>&#148; means an Award granted under Section&nbsp;7 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) &#147;<I>Option Period</I>&#148; means the period described in Section&nbsp;7(c) of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(w) &#147;<I>Option Price</I>&#148; means the exercise price set for an Option described in Section&nbsp;7(a) of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(x) &#147;<I>Participant</I>&#148; means an Eligible Person who has been selected by the Committee to participate in the Plan and to receive an
Award pursuant to Section&nbsp;6 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(y) &#147;<I>Performance Goals</I>&#148; means the performance objectives established by the
Committee under Section&nbsp;8 of the Plan with respect to an Award Period or Restricted Period, with respect to Performance Share Units or Performance Cash Units or Restricted Stock, respectively, established for the purpose of determining whether,
and to what extent, such Awards will be earned for an Award Period or Restricted Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(z) &#147;<I>Performance Cash Unit</I>&#148;
means a hypothetical equivalent to a number of dollars established by the Committee and granted in connection with an Award made under Section&nbsp;8 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(aa) &#147;<I>Performance Share Account</I>&#148; means an account established for a Participant under Section&nbsp;8 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(bb) &#147;<I>Performance Share Unit</I>&#148; means a hypothetical investment equivalent equal to one share of Stock granted in connection
with an Award made under Section&nbsp;8 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(cc) &#147;<I>Plan</I>&#148; means the Connecticut Water Service, Inc. 2004
Performance Stock Program. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(dd) &#147;<I>Predecessor Plan</I>&#148; means the Company&#146;s 1994 Performance Stock Program, as amended
and restated as of April&nbsp;26, 2002. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ee) &#147;<I>Qualified Performance-Based Award</I>&#148; means either: (i)&nbsp;a Performance
Cash Unit, Performance Share Unit or Restricted Stock Award that is intended to qualify for the Section&nbsp;162(m) Exemption and is made subject to Performance Goals based on Qualified Performance Criteria; or (ii)&nbsp;an Option having an exercise
price equal to or greater than the Fair Market Value of the underlying Stock as of the Date of Grant. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ff) &#147;<I>Qualified Performance Criteria</I>&#148; means one or more of the Performance
Goals established by the Committee which meet the objectivity and any other requirements for the Section&nbsp;162(m) Exemption. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(gg)
&#147;<I>Restricted Period</I>&#148; means, with respect to any share of Restricted Stock, the period of time determined by the Committee during which such Award is subject to the restrictions set forth in Section&nbsp;9 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(hh) &#147;<I>Restricted Stock</I>&#148; means shares of Stock issued or transferred to a Participant subject to forfeiture and the other
restrictions set forth in Section&nbsp;9 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) &#147;<I>Restricted Stock Award</I>&#148; means an Award of Restricted Stock
granted under Section&nbsp;9 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(jj) &#147;<I>Section</I><I></I><I>&nbsp;162(m) Exemption</I>&#148; means the exemption from the
limitation on deducibility imposed by Section&nbsp;162(m) of the Code that is set forth in Section&nbsp;162(m)(4)(C) of the Code. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(kk)
&#147;<I>Securities Act</I>&#148; means the Securities Act of 1933, as amended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ll) &#147;<I>Stock</I>&#148; means the Common Stock or
such other authorized shares of stock of the Company as from time to time may be authorized for use under the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(mm)
&#147;<I>Subsidiary</I>&#148; means any corporation, 50% or more of whose stock having general voting power is owned by the Company, or by another Subsidiary, as herein defined, of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(nn) &#147;<I>Treasury Regulations</I>&#148; means the regulations, as amended from time to time, promulgated under the Code. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(oo) &#147;<I>Trust</I>&#148; means the grantor trust, if any, described in Section&nbsp;8(c)(ii) of the Plan. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>3. Effective Date, Duration and Shareholder Approval </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan was first adopted and made effective as of January&nbsp;7, 2004 (the &#147;<I>Effective Date</I>&#148;). The validity of any and all
Awards granted pursuant to the Plan shall be effective when made (unless otherwise specified by the Committee on the Date of Grant), but shall be conditioned upon, and subject to, approval of the Plan by the stockholders of the Company at a meeting
duly held in accordance with the applicable laws of the state of Connecticut within twelve (12)&nbsp;months after the Effective Date in a manner which complies with Section&nbsp;422(b)(1) of the Code and Section&nbsp;162(m)(4)(C)(ii) of the Code.
</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The expiration date of the Plan, after which no Awards may be granted hereunder, shall be
April&nbsp;23, 2014; provided, however, that the administration of the Plan shall continue in effect until all matters relating to the payment of Awards previously granted have been settled. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>4. Administration </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan shall be
administered by the Committee, which shall be composed of at least two persons serving as directors of the Company, each member of which, at the time he or she takes any action with respect to an Award under the Plan, shall be a <FONT
STYLE="white-space:nowrap">&#147;Non-Employee</FONT> Director&#148;, as defined in Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> under the Exchange Act, an &#147;independent director&#148; under the listing standards of the Nasdaq Stock Market,
Inc. and an &#147;outside director&#148;, as defined in Treasury Regulations <FONT STYLE="white-space:nowrap">Section&nbsp;1.162-27(e)(3),</FONT> or any successor rules or regulation of each of the foregoing. The majority of the members of the
Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present or acts approved in writing by a majority of the Committee shall be deemed the acts of the Committee. The Committee may
also act without meeting by unanimous written consent. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subject to the provisions of the Plan, the Committee shall have exclusive power
to: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) Select the Eligible Persons to participate in the Plan; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) Determine the nature and extent of the Awards to be made to each Participant; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) Determine the time or times when Awards will be made to Eligible Persons; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) Determine the duration of each Award Period and Restricted Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) Determine the conditions to which the payment of Awards may be subject; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) Establish and administer the Performance Goals, if any, for each Award Period and, with respect to Covered Employees, certify that
Performance Goals are attained in accordance with the requirements of Treasury Regulations <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Section&nbsp;1-162-27(e)(5);</FONT></FONT> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) Prescribe the form of Award Agreement or other form or forms evidencing Awards; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) Cause records to be established in which there shall be entered, from time to time as Awards are made to Eligible Persons, the date of each
Award, the number of Incentive Stock Options, Nonqualified Stock Options, Performance Share Units or Performance Cash Units, and shares of Restricted Stock awarded by the Committee to each Eligible Person, and the expiration date and the duration of
any applicable Award Period or Restricted Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee shall have the authority, subject to the provisions of the Plan, to
establish, adopt, or revise such rules and regulations and to make all such determinations relating to the Plan as it may deem necessary or advisable for the administration of the Plan. The Committee&#146;s interpretation of the Plan or any
documents evidencing Awards granted pursuant thereto and all decisions and determinations by the Committee with respect to the Plan shall be final, binding, and conclusive on all parties unless otherwise determined by the Board. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">5 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Anything in the Plan to the contrary notwithstanding, no term or provision of the Plan
relating to Incentive Stock Options or any Award Agreement providing for Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify the Plan
under Section&nbsp;422 of the Code, or, without the consent of the Holder(s) affected, to disqualify any Incentive Stock Option under such Section&nbsp;422. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>5. Grant of Awards; Shares Subject to the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee may, from time to time, grant Awards of Options, Restricted Stock, and/or Performance Share Units or Performance Cash Units to
one or more Eligible Persons; provided, however, that: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) Subject to adjustments as provided in Section&nbsp;12 hereof, the aggregate
number of shares of Stock made subject to all Awards may not exceed 700,000 shares, and the aggregate number of shares of Stock subject to Awards to any single individual may not exceed 150,000. Such shares shall be in addition to all shares of
Stock issued or reserved for issuance pursuant to Awards granted under the Predecessor Plan; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) Such shares shall be deemed to have been
used in payment of Awards whether they are actually delivered or the Fair Market Value equivalent of such shares is paid in cash. In the event any Option, Restricted Stock Award, Performance Share Unit or Performance Cash Unit shall be surrendered,
terminate, expire, or be forfeited, the number of shares of Stock no longer subject thereto shall thereupon be released and shall thereafter be available for new Awards under the Plan; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) Stock delivered by the Company in settlement of Awards under the Plan may be authorized and unissued Stock or Stock held in the treasury of
the Company or may be purchased on the open market or by private purchase; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) The Committee may, in its sole discretion, require a
Participant to pay consideration for an Award in an amount and in a manner as the Committee deems appropriate; and </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) Notwithstanding
anything to the contrary in Section&nbsp;14 hereof, or any other applicable provision of the Plan, the Option Price of an outstanding Option granted under the Plan may not be decreased after the Date of Grant nor may an outstanding Option granted
under the Plan be surrendered to the Company as consideration for the grant of a new Option with a lower Option Price (except as otherwise provided in Section&nbsp;12 hereof relating to the adjustment of Awards upon changes in capitalization of the
Company). </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>6. Eligibility </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Plan Participation. Awards may be made or granted to Eligible Persons selected by the Committee whose past, present and/or potential
contributions to the Company and/or one or more of its Subsidiaries have been, are or will be important to the success of the Company, to give them an opportunity to acquire a proprietary interest in the Company; provided however, that Incentive
Stock Options may only be granted to any Eligible Persons selected by the Committee who are full-time, salaried employees of the Company or a Subsidiary who are, from time to time, responsible for the management and/or growth of all or part of the
business of the Company or a Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Substitute Awards. The Committee, in its discretion, may also grant Awards in substitution
for any stock incentive awards previously granted by companies acquired by the Company or one of its Subsidiaries. Such substitute awards may be granted on such terms and conditions as the Committee deems appropriate in the circumstances, provided,
however, that substitute Incentive Stock Options shall be granted only in accordance with the requirements of the Code. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>7. Stock Options </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subject to Section&nbsp;6(a) hereof, the Committee is authorized to grant one or more Incentive Stock Options or Nonqualified Stock Options to
any Eligible Person. To the extent that any Stock Option intended by the Committee to qualify as an Incentive Stock Option does not so qualify, it shall constitute a separate Nonqualified Stock Option. Each Option so granted shall be subject to the
following conditions or to such other conditions as may be reflected in the applicable Award Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) Option Price. The exercise
price (&#147;<I>Option Price</I>&#148;) per share of Stock for each Option shall be set by the Committee at the time of grant but shall not be less than the Fair Market Value of a share of Stock on the Date of Grant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) Manner of Exercise and Form of Payment. Options which have become exercisable may be exercised by delivery of written notice of exercise to
the Committee accompanied by payment of the Option Price. The Option Price shall be payable by the Participant either by payment to the Company in cash, by wire transfer, by certified or bank check or by personal check (in each case made payable to
the order of the Company) or, at the discretion of the Committee, through a combination of any one or more of the following methods: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i)
delivery of shares of Stock then held by the Participant having an aggregate Fair Market Value equal to the Option Price, provided that such Stock has been held by the Participant for at least six (6)&nbsp;months and is delivered to the Company free
and clear of any liens and encumbrances thereto; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) an election by the Participant to make a &#147;cashless exercise&#148; through a
registered broker-dealer to sell all or a portion of the shares of Stock acquired upon exercise of the Option and to deliver promptly to the Company the amount of sale proceeds sufficient to pay the aggregate Option Price (and any applicable tax
withholding amount), provided that any such cashless exercise shall be made only pursuant to such procedures which are, from time to time, deemed acceptable by the Committee; or </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) delivery of shares of Stock otherwise receivable upon the exercise of the Option
having an aggregate Fair Market Value equal to the Option Price (and any applicable tax withholding amount); provided, however, that in the event the Committee shall determine in any given instance that the exercise of such Option by withholding
shares otherwise receivable would be unlawful, unduly burdensome or otherwise inappropriate, the Committee may require that such exercise be accomplished in another acceptable manner. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Notwithstanding anything in this Plan to the contrary, an Option may be exercised in accordance with the arrangements and procedures described in this
Section&nbsp;7(b) only to the extent such arrangements or procedures comply with Section&nbsp;13(k) of the Exchange Act and any other applicable laws, rules and regulations. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Option Vesting Periods; Duration and Expiration.</B> Options awarded under the Plan shall vest and become exercisable in such manner and
on such date or dates determined by the Committee. Except as may otherwise by established by the Committee on the Date of Grant, each Option awarded under the Plan shall be exercisable with respect to not more than twenty-five percent (25%) of the
shares of Stock subject thereto after the expiration of one (1)&nbsp;year following the Date of Grant, and shall be exercisable as to an additional twenty-five percent (25%) of the shares of Stock subject thereto after the expiration of each of the
succeeding three (3)&nbsp;years, on a cumulative basis, so that such Option, or any unexercised portion thereof, shall be fully exercisable after a period of four (4)&nbsp;years following the Date of Grant; provided, however, that each award of an
Incentive Stock Option shall also comply with the requirements of the Code and Section&nbsp;7(g) hereof. Options awarded under the Plan shall expire after such period, not to exceed ten (10)&nbsp;years with respect to Incentive Stock Options, as may
be determined by the Committee (the &#147;<I>Option Period</I>&#148;); provided, however, that notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which
acceleration shall not affect the terms and conditions of any such Option other than with respect to exercisability. If an Option is exercisable in installments, such installments or portions thereof which become exercisable shall remain exercisable
until the Option expires. Unless otherwise stated in the applicable Option Award Agreement, an Incentive Stock Option shall expire earlier than the end of the Option Period in the following circumstances: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) If prior to the end of the Option Period, the Participant shall undergo a Normal Termination, the Incentive Stock Option shall expire on
the earlier of the last day of the Option Period or the date that is ninety (90)&nbsp;days after the date of such Normal Termination. In such event, the Incentive Stock Option shall remain exercisable by the Holder until its expiration, only to the
extent the Option was exercisable at the time of such Normal Termination; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If the Participant dies prior to the end of the Option
Period and while still in the employ of the Company or such Participant becomes Disabled, the Incentive Stock Option shall expire on the earlier of the last day of the Option Period or the date that is one year after the date of death or Disability
of the Participant. In the event of death or Disability, the Incentive Stock </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>

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Option shall remain exercisable by the Participant or the Holder or Holders to whom the Participant&#146;s rights under the Incentive Stock Option pass by will or the applicable laws of descent
and distribution until its expiration, only to the extent the Incentive Stock Option was exercisable by the Participant at the time of death or Disability. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In granting any Nonqualified Stock Option, the Committee may specify that such Nonqualified Stock Option shall be subject to the restrictions
set forth in Section&nbsp;7(c)(i) or (ii)&nbsp;herein with respect to Incentive Stock Options, or such other termination and cancellation provisions as the Committee may determine. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Other Terms and Conditions.</B> In addition, each Option granted under the Plan shall be evidenced by an Award Agreement, which shall
contain such provisions as may be determined by the Committee and, except as may be specifically stated otherwise in such Award Agreement, which shall be subject to the following terms and conditions: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Each Option issued pursuant to this Section&nbsp;7 or portion thereof that is exercisable shall be exercisable for the full amount or for
any part thereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) Each share of Stock purchased through the exercise of an Option issued pursuant to this Section&nbsp;7 shall be
paid for in full at the time of the exercise in the manner described in Section&nbsp;7(b) hereof. Each Option shall cease to be exercisable, as to any share of Stock, when the Holder purchases the share or when the Option expires. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Subject to Section&nbsp;11(l) hereof, Options issued pursuant to this Section&nbsp;7 shall not be transferable by the Holder except by
will or the laws of descent and distribution and shall be exercisable during the Holder&#146;s lifetime only by the Holder. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) Each
Option issued pursuant to this Section&nbsp;7 shall vest and become exercisable by the Holder in accordance with the vesting schedule established by the Committee and set forth in the Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) Each Award Agreement may contain a provision that, upon demand by the Committee for such a representation, the Holder shall deliver to the
Committee at the time of any exercise of an Option issued pursuant to this Section&nbsp;7 a written representation that the shares to be acquired upon such exercise are to be acquired for investment and not for resale or with a view to the
distribution thereof. Upon such demand, delivery of such representation prior to the delivery of any shares issued upon exercise of an Option issued pursuant to this Section&nbsp;7 shall be a condition precedent to the right of the Holder to
purchase any shares. In the event certificates for Stock are delivered under the Plan with respect to which such investment representation has been obtained, the Committee may cause a legend or legends to be placed on such certificates to make
appropriate reference to such representation and to restrict transfer in the absence of compliance with applicable federal or state securities laws. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vi) Each Incentive Stock Option Award Agreement shall contain a provision requiring the
Holder to notify the Company in writing immediately after the Holder makes a disqualifying disposition of any Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including any sale)
of such Stock before the later of; (A)&nbsp;two years after the Date of Grant of the Incentive Stock Option, or (B)&nbsp;one year after the date the Holder acquired the Stock by exercising the Incentive Stock Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Deferred Delivery of Option Shares.</B> The Committee may, in its discretion permit the Holder of an Option to elect to defer the
issuance of Stock upon the exercise of one or more Nonqualified Stock Options granted pursuant to the Plan. The terms and conditions of such deferral shall be determined at the time of the grant of the Option or thereafter and shall be set forth in
the Award Agreement evidencing the Option. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Buyout and Settlement Provisions.</B> The Committee may, in its sole discretion, offer
to repurchase an Option previously granted, only in extraordinary circumstances, and not in the ordinary course of business, based upon such terms and conditions as the Committee shall establish and communicate to the Holder of the Option at the
time that such offer is made. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <B>Incentive Stock Option Grants to 10% Stockholders.</B> Notwithstanding anything to the contrary in
this Section&nbsp;7, if an Incentive Stock Option is granted to a Participant who owns stock representing more than ten percent of the voting power of all classes of stock of the Company or of a Subsidiary, the Option Period shall not exceed five
(5)&nbsp;years from the Date of Grant of such Option and the Option Price shall be at least 110&nbsp;percent of the Fair Market Value (on the Date of Grant) of the Stock subject to the Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) <B>$100,000 Per Year Limitation for Incentive Stock Options.</B> To the extent the aggregate Fair Market Value (determined as of the Date
of Grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Subsidiaries) exceeds $100,000, such excess Incentive Stock Options shall be
treated as Nonqualified Stock Options. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) <B>Voluntary Surrender.</B> The Committee may permit the voluntary surrender of all or any
portion of any Nonqualified Stock Option issued pursuant to this Section&nbsp;7 granted under the Plan to be conditioned upon the granting to the Holder of a new Option for the same or a different number of shares as the Option surrendered or
require such voluntary surrender as a condition precedent to a grant of a new Option to such Participant. Subject to Section&nbsp;5(e) hereof, such new Option shall be exercisable at an Option Price, during an Option Period, and in accordance with
any other terms or conditions specified by the Committee at the time the new Option is granted, all determined in accordance with the provisions of the Plan without regard to the Option Price, Option Period, or any other terms and conditions of the
Nonqualified Stock Option surrendered. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j) <B>Conversion of Incentive Stock Options into Nonqualified Stock Options; Termination of
Incentive Stock Options.</B> The Committee, at the written request of any Holder, may in its discretion, take such actions as may be necessary to convert such Holder&#146;s Incentive Stock Options (or any installments or portions of installments
thereof) that have not been exercised on the date of conversion into Nonqualified Stock Options at any time prior to the expiration of such Incentive Stock Options, regardless of whether the Holder is an employee of the Company or a Subsidiary at
the time of such conversion. Such actions may include, but not </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>

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be limited to, extending the Option Period of such Incentive Stock Options. At the time of such conversion, the Committee (with the consent of the Holder) may impose such conditions on the
exercise of the resulting Nonqualified Stock Options as the Committee in its discretion may determine, provided that such conditions shall not be inconsistent with the Plan. Nothing in the Plan shall be deemed to give any Holder the right to have
such Holder&#146;s Incentive Stock Options converted into Nonqualified Stock Options, and no such conversion shall occur until and unless the Committee takes appropriate action. The Committee, with the consent of the Holder, may also terminate any
portion of any Incentive Stock Option that has not been exercised at the time of such termination. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>8. Performance Share or Cash Units </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Award Grants.</B> The Committee is authorized to establish performance programs to be effective over designated Award Periods determined
by the Committee. The Committee may grant Awards of Performance Share Units or Performance Cash Units to Eligible Persons in accordance with such performance programs. The Committee shall determine the number of Performance Share Units or
Performance Cash Units to be awarded, if any, to each Eligible Person who is selected to receive such an Award. Before or within 90 days after the beginning of each Award Period to which the Performance Goals relate and on or before twenty-five
percent (25%) of the period of service (as scheduled in good faith at the time the Performance Goals are established) has elapsed, the Committee shall establish written Performance Goals based upon financial objectives for the Company or a
Subsidiary for such Award Period and a schedule relating the accomplishment of the Performance Goals to the Awards to be earned by Participants, provided that the outcome is substantially uncertain at the time the Committee actually establishes the
Performance Goals. Performance Goals may include absolute or relative growth in earnings per share, rate of return on stockholders&#146; equity, earnings per share, total stockholder return relative to peers, water quality, customer satisfaction,
customer growth or other measurement of corporate performance and may be determined on an individual basis or by categories of Participants. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Determination of Award.</B> At the completion of an Award Period, or at other times as specified by the Committee, the Committee shall
calculate the number of shares of Stock or amount of cash earned with respect to each Participant&#146;s Performance Share Unit or Performance Cash Unit, as applicable, by multiplying the number of Performance Share Units and Performance Cash Units,
as applicable, granted to the Participant by a performance factor representing the degree of attainment of the Performance Goals. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c)
<B>Payment of Performance Share or Cash Unit Awards.</B> Performance Share Unit or Performance Cash Unit Awards shall be payable in that number of shares of Stock or that amount of cash determined in accordance with Section&nbsp;8(b); provided,
however, that, at its discretion, the Committee may make payment to any Participant of Performance Share Units in the form of cash upon the specific request of such Participant. The amount of any payment made in cash shall be based upon the Fair
Market Value of the Stock on the business day prior to payment. Payments of Performance Share Unit or Performance Cash Unit Awards shall be made as soon as practicable after the completion of an Award Period; provided, however, that if a Participant
makes the election described below, Performance Share Units or Performance Cash </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>

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Units (with any Performance Cash Units being converted into equivalent Performance Share Units) shall instead be credited to the Participant&#146;s Performance Share Account. Such credit of
Performance Share Units to a Participant&#146;s Performance Share Account shall be made as of the same date as payment of the Award would have been made to the Participant had no prior election been made. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <B>Elections.</B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Any
election to have an Award or a portion of an Award credited to a Performance Share Account shall be made on a written form provided by the Company for such purpose and shall only be effective with respect to Awards that may be made on and after the
January&nbsp;1 following the Company&#146;s receipt of such form, provided that such form is received by the December&nbsp;24 prior to the applicable January 1. Any such election shall be made only in increments of ten percent (10%) of the Award
(rounded to the nearest whole share) and shall be effective only for Awards made during the year in which the election becomes effective. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <B>Performance Share Account.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">The Company shall maintain on its books and records a Performance Share Account to record its liability for future payments to the Participant
or his beneficiary pursuant to the Plan. However, a Performance Share Account under the Plan shall constitute an unfunded arrangement; the Company shall not be required to segregate or earmark any of its assets for the benefit of the Participant or
his beneficiary, and the amount reflected in a Performance Share Account shall be available for the Company&#146;s general corporate purposes and shall be available to the Company&#146;s general creditors. The amount reflected in a Performance Share
Account shall not be subject in any manner to anticipation, alienation, transfer or assignment by the Participant or his or her beneficiary, and any attempt to anticipate, alienate, transfer or assign the same shall be void. Neither the Participant
nor his or her beneficiary may assert any right or claim against any specific assets of the Company in respect of a Performance Share Account, and the Participant and his or her beneficiary shall have only a contractual right against the Company for
the amount reflected in a Performance Share Account. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, in order to pay amounts which may become due under the
Plan in respect of a Participant&#146;s Performance Share Account, the Company may establish a grantor trust (hereinafter the &#147;<I>Trust</I>&#148;) within the meaning of Section&nbsp;671 of the Code. Some or all of the assets of the Trust may be
dedicated to providing benefits to the Participants pursuant to the Plan, but, nevertheless, all assets of the Trust shall at all times remain subject to the claims of the Company&#146;s general creditors in the event of the Company&#146;s
bankruptcy or insolvency. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) <B>Dividend Equivalents.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">On every date on which a dividend or other distribution is paid with respect to Common Stock, commencing with the first such payment date after
the date on which a Performance Share Unit is credited to a Participant&#146;s Performance Share Account and continuing until such Performance Share Unit is either forfeited or paid out, there shall be credited to the Participant&#146;s Performance
Share Account a Dividend Equivalent in respect of such Performance Share Unit. A Dividend Equivalent shall mean, with respect to a whole Performance Share Unit credited to a Participant&#146;s Performance Share Account, a measure of value equal to
the fractional share of Common Stock that could be purchased with the amount that would have been paid to the Participant as a dividend or other distribution if the Participant had owned a whole share of Common Stock in lieu of said whole
Performance Share Unit, the date of such deemed purchase being the dividend payment date. Dividend Equivalents are expressed in the form of Performance Share Units. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) <B>Participant Not a Stockholder.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">The Participant shall have no stockholder&#146;s rights with respect to any shares of Common Stock in respect of which Performance Share Units
are credited to his or her Performance Share Account. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) <B>Payments in Respect of Performance Shares.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">1. <I>Termination of Employment:</I> In the event of a Participant&#146;s Normal Termination and without a payment date having been specified
as provided below, such Participant shall be entitled to receive payment in respect of the entire amount then credited to his or her Performance Share Account. Such payment shall be made in the form of the number of shares of Common Stock equal to
the number of whole Performance Share Units then credited to the Participant&#146;s Performance Share Account, including related Dividend Equivalents, with any fractional Performance Share Unit being paid in cash determined on the basis of the value
of a corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be transferred to the Participant within sixty (60)&nbsp;days after the Participant&#146;s
termination of employment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2. <I>Election of Participant:</I> Upon prior written election by a Participant, the Participant shall be
entitled to receive payment in respect of Performance Share Units, and any Dividend Equivalents earned on such Award, to the extent then vested, on the date or dates specified in such written election. Such election must either be made as part of
the election to have such Performance Share Units credited to a Performance Share Account as provided above, or at any time at least one year prior to the date on which such payment would otherwise be made. Such payment shall be made in the form of
the number of shares of Common Stock equal to the number of whole Performance Share Units, including related Dividend Equivalents, then credited to the Participant&#146;s Performance Share Account with respect to such Award, with any fractional
Performance Share Unit being paid in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. The Participant&#146;s Performance Share Account thereafter shall
be reduced to reflect the foregoing payment. Nothing herein shall preclude separate elections with respect to separate Awards. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">3. <I>Disability or Death While Employed by the Company: </I>Notwithstanding an election
made pursuant to the preceding section, in the event of a Participant&#146;s termination of employment for reasons of Disability or death, Participant or his or her beneficiary, as the case may be, shall be entitled to receive payment in respect of
the entire amount then credited to his or her Performance Share Account. Such payment shall be made in the form of the number of shares of Common Stock equal to the number of whole Performance Share Units then credited to the Participant&#146;s
Performance Share Account, with any fractional Performance Share Unit being paid in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of
Common Stock and any cash amount shall be transferred to the Participant or his or her beneficiary within sixty (60)&nbsp;days after the Company has been notified in writing of the Disability or death of the Participant and has been provided with
any additional information, forms or other documents it may reasonably request. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">4. <I>Hardship Payment: </I>Notwithstanding an election
made pursuant to the Plan or the Participant&#146;s continued employment with the Company, if the Committee, upon written petition of the Participant, determines, in the Committee&#146;s sole discretion, that the Participant has suffered an
unforeseeable financial emergency (as hereinafter defined), the Participant shall be entitled to receive, as soon as practicable following such determination, payment sufficient to meet the cash needs arising from the unforeseeable financial
emergency, not in excess of the number of whole Performance Share Units then credited to the Participant&#146;s Performance Share Account. Such payment shall be made, at the election of the Participant, either (i)&nbsp;in the form of the number of
whole shares of Common Stock, the proceeds from the sale of which would be sufficient to meet the cash needs arising from the unforeseeable financial emergency, not in excess of the number of whole Performance Shares Units then credited to the
Participant&#146;s Performance Share Account; (ii)&nbsp;in cash equal to the value on the business day preceding the date of payment of the number of whole shares of Common Stock available for payment under clause (i)&nbsp;of this sentence; or
(iii)&nbsp;in any combination of the methods of payment provided for in clauses (i)&nbsp;and (ii) of this sentence. In the event of a hardship payment in respect of the Participant&#146;s entire Performance Share Account, any fractional Performance
Share Unit shall be paid in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. For purposes of the foregoing, an &#147;unforeseeable financial
emergency&#148; shall mean an unexpected need for cash arising from a sudden and unexpected illness or accident of a Participant or of a dependent (as defined in Section&nbsp;152(a) of the Code) of the Participant, loss of the Participant&#146;s
property due to casualty or other similar extraordinary and unforeseeable circumstances arising as of a result of events beyond the control of the Participant. Payment will not be made to the extent that the unforeseeable financial emergency may be
satisfied through cessation of deferrals of income, insurance or other reimbursement, or a liquidation of other assets to the extent such liquidation would not itself cause severe financial hardship. Cash needs arising from foreseeable events such
as generally the purchase of a house or educational expenses for children shall not be considered to be the result of an unforeseeable financial emergency. Said shares of Common Stock and any cash amount shall be transferred to the Participant as
soon as practicable after the Committee determines that the Participant has suffered an unforeseeable financial emergency. The Participant&#146;s Performance Share Account thereafter shall be reduced to reflect the foregoing payment. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">14 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">5. <I>Early Withdrawal: </I>Notwithstanding an election made pursuant to the Plan or the
Participant&#146;s continued employment with the Company, the Participant, upon written petition to the Committee at any time, shall be entitled to receive payment in respect of all or any portion of the amount then credited to his or her
Performance Share Account, subject to a forfeiture penalty of ten percent (10%) of the amount of the payment requested by the Participant. Such payment shall be made, at the election of the Participant, either (i)&nbsp;in the form of the number of
shares of Common Stock equal to the number of whole Performance Share Units requested by the Participant in the written petition and then credited to the Participant&#146;s Performance Share Account; (ii)&nbsp;in cash equal to the value on the
business day preceding the date of payment of the number of whole shares of Common Stock available for payment under clause (i)&nbsp;of this sentence; or (iii)&nbsp;in any combination of the methods of payment provided for in clauses (i)&nbsp;and
(ii) of this sentence. In the event of an early withdrawal in respect of the Participant&#146;s entire Performance Share Account, any fractional Performance Share Unit shall be paid in cash determined on the basis of the value of a corresponding
fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be transferred to the Participant within sixty (60)&nbsp;days after the Company has received the
Participant&#146;s written petition. The Participant&#146;s Performance Share Account thereafter shall be reduced to reflect the foregoing payment and the ten percent (10%) forfeiture penalty. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Adjustment of Performance Goals.</B> The Committee may, during the Award Period, make such adjustments to Performance Goals as it may
deem appropriate, to compensate for, or reflect, (i)&nbsp;extraordinary or <FONT STYLE="white-space:nowrap">non-recurring</FONT> events experienced during an Award Period by the Company or by any other corporation whose performance is relevant to
the determination of whether Performance Goals have been attained; (ii)&nbsp;any significant changes that may have occurred during such Award Period in applicable accounting rules or principles or changes in the Company&#146;s method of accounting
or in that of any other corporation whose performance is relevant to the determination of whether an Award has been earned; (iii)&nbsp;any significant changes that may have occurred during such Award Period in tax laws or other laws or rules or
regulations that alter or affect the computation of the measures of Performance Goals used for the calculation of Awards; or (iv)&nbsp;any other factors which the Committee deems appropriate; provided, however, that no such change may increase the
amount of an Award that would otherwise be payable to any Covered Employee. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>9. Restricted Stock Awards </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Award of Restricted Stock.</B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) The Committee shall have the authority (1)&nbsp;to grant Restricted Stock Awards, (2)&nbsp;to issue or transfer Restricted Stock to
Eligible Persons, and (3)&nbsp;to establish terms, conditions and restrictions applicable to such Restricted Stock (including the Restricted Period and the satisfaction of Performance Goals, if applicable), which may differ with respect to each
grantee, the time or times at which Restricted Stock shall be granted or become vested and the number of shares to be covered by each grant. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) The Holder of a Restricted Stock Award shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock
setting forth the restrictions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held in escrow rather than delivered to the Holder pending the release of the applicable restrictions, the
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>

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Holder additionally shall execute and deliver to the Company (1)&nbsp;an escrow agreement satisfactory to the Committee, and (2)&nbsp;the appropriate blank stock powers with respect to the
Restricted Stock covered by such agreements. If a Holder shall fail to execute a Restricted Stock Award Agreement and, if applicable, an escrow agreement and stock powers, within ten (10)&nbsp;days after receipt thereof from the Company, the Award
shall be null and void. Subject to the restrictions set forth in Section&nbsp;9(b) and any other conditions contained in the Award Agreement, the Holder shall generally have the rights and privileges of a stockholder as to such Restricted Stock,
including the right to vote such Restricted Stock, and to receive dividends paid thereon. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) Upon the Award of Restricted Stock, the
Committee shall cause a Stock certificate registered in the name of the Holder to be issued and, if it so determines, deposited together with the Stock powers with an escrow agent designated by the Committee. If an escrow arrangement is used, the
Committee shall cause the escrow agent to issue to the Holder a receipt evidencing any Stock certificate held by it registered in the name of the Holder. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Restrictions.</B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i)
Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (1)&nbsp;if an
escrow arrangement is used, the Holder shall not be entitled to delivery of the Stock certificate; (2)&nbsp;the shares shall be subject to the restrictions on transferability set forth in the Award Agreement; and (3)&nbsp;the shares shall be subject
to forfeiture to the extent provided in subparagraph (d)&nbsp;and the Award Agreement and, to the extent such shares are forfeited, the Stock certificates shall be returned to the Company, and all rights of the Holder to such shares and as a
shareholder shall terminate without further obligation on the part of the Company. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) If the Committee intends to make a
Participant&#146;s receipt of an Award of Restricted Stock under this Section&nbsp;9 subject to the accomplishment of Performance Goals (which may be adjusted as provided in Section&nbsp;8(d) hereof), then before or within 90 days after the
beginning of each Restricted Period to which the Performance Goals relate and on or before twenty-five percent (25%) of the period of service (as scheduled in good faith at the time the Performance Goals are established) has elapsed, the Committee
shall establish written Performance Goals based upon financial objectives for the Company or a Subsidiary for such Restricted Period and a schedule relating the accomplishment of the Performance Goals to the Award to be earned by the Participant,
provided that the outcome is substantially uncertain at the time the Committee actually establishes the Performance Goals. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) The
Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the Restricted
Stock Award, such action is appropriate. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Restricted Period.</B> The Restricted Period of Restricted Stock shall commence on the
Date of Grant and shall expire from time to time as to that part of the Restricted Stock indicated in a schedule established by the Committee and set forth in the written Award Agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Forfeiture Provisions.</B> Except to the extent determined by the Committee and
reflected in the underlying Award Agreement, in the event a Participant terminates employment with the Company during a Restricted Period for any reason, that portion of the Award with respect to which restrictions have not expired shall be
completely forfeited to the Company. In the event of such a forfeiture, the amount of an Award that would otherwise be payable shall be reduced, but not below zero, by the amount of any dividends previously paid to the Holder with respect to the
forfeited Restricted Stock and the Holder shall repay to the Company the amount of any dividends that would have reduced the amount of the Award to less than zero. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Delivery of Restricted Stock.</B> Upon the expiration of the Restricted Period with respect to any shares of Stock covered by a
Restricted Stock Award, the restrictions set forth in Section&nbsp;9(b) hereof and the Award Agreement shall be of no further force or effect with respect to shares of Restricted Stock which have not then been forfeited. If an escrow arrangement is
used, upon such expiration, the Company shall deliver to the Holder, or his or her beneficiary, without charge, the Stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the
Restricted Period has expired (to the nearest full share) and any cash dividends or Stock dividends credited to the Holder&#146;s account with respect to such Restricted Stock and the interest thereon, if any. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Stock Restrictions.</B> Each certificate representing Restricted Stock awarded under the Plan shall bear the following legend until the
end of the Restricted Period with respect to such Stock: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">&#147;Transfer of this certificate and the shares represented hereby is
restricted pursuant to the terms of a Restricted Stock Agreement, dated as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, between Connecticut Water Service, Inc. and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. A copy of such Agreement is on file at the offices of the Company.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Stop transfer orders shall be entered with the Company&#146;s transfer agent and registrar against the transfer of legended securities. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <B>Deferral.</B> Upon election by a Participant, a whole share of Restricted Stock that would otherwise have been granted to the
Participant shall instead be made in the form of Performance Share Units, and such Performance Share Units shall be credited to the Participant&#146;s Performance Share Account, subject to the provisions of Section&nbsp;8 hereof. Such credit of
Performance Share Units shall be made as of the same date as Restricted Stock would have been awarded to the Participant had no prior election been made. Any such election shall be made by December&nbsp;24 prior to the year in which the Award for
which the election is made will be made, and shall otherwise comply with the requirements for elections in Section&nbsp;8(c) hereof. If an event occurs which would have caused forfeiture of the Restricted Stock for which an election pursuant to this
paragraph is made, then the equivalent Performance Share Units, along with any related Dividend Equivalents, shall be forfeited. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">17 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>10. <FONT STYLE="white-space:nowrap">Non-Competition</FONT> Provisions </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to such other conditions as may be established by the Committee, in consideration of the granting of Awards under the terms of the
Plan, the Committee, in its discretion, may include <FONT STYLE="white-space:nowrap">non-competition</FONT> provisions in the applicable Award Agreement. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>11. General </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(a) <B>Written
Agreements.</B> Each award granted under the Plan shall be confirmed by, and shall be subject to the terms of, the Award Agreement executed by the Company and the Holder. The Committee may terminate any Award made under the Plan if the Agreement
relating thereto is not executed and returned to the Company within ten (10)&nbsp;business days after the Award Agreement has been delivered to the Holder for his or her execution. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(b) <B>Additional Provisions of an Award.</B> Awards under the Plan also may be subject to such other provisions (whether or not applicable to
the benefit awarded to any other Participant) as the Committee determines appropriate including, without limitation, provisions for the forfeiture of or restrictions on resale or other disposition of shares of Stock acquired under any Award,
provisions giving the Company the right to repurchase shares of Stock acquired under any Award in the event the Participant elects to dispose of such shares, and provisions to comply with Federal and state securities laws and Federal and state tax
withholding requirements. Any such provisions shall be reflected in the applicable Award Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(c) <B>Privileges of Stock
Ownership.</B> Except as otherwise specifically provided in the Plan, no person shall be entitled to the privileges of stock ownership in respect of shares of Stock which are subject to Awards hereunder until such shares have been issued to that
person. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(d) <B>Government and Other Regulations.</B> The obligation of the Company to make payment of Awards in Stock or otherwise shall
be subject to: (1)&nbsp;all applicable laws, rules and regulations and such approvals by any governmental agencies as may be required, including, without limitation, the Securities Act and the Exchange Act, and (2)&nbsp;the rules and regulations of
the Nasdaq Stock Market, Inc. or any securities exchange on which the Company&#146;s Common Stock may be listed. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to
sell and shall be prohibited from offering to sell or selling any shares of Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and Exchange Commission or unless the
Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully
complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Stock to be offered or sold under the Plan. If the shares of Stock offered for sale or sold under the Plan are offered or sold
pursuant to an exemption from registration under the Securities Act, such Shares may be deemed &#147;restricted securities&#148; as defined in Rule 144 under the Securities Act. The Company may restrict the transfer of such shares and may legend the
Stock certificates representing such shares in such manner as it deems advisable to ensure the availability of any such exemption. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">18 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(e) <B>Tax Withholding.</B> Notwithstanding any other provision of the Plan, the Company or
a Subsidiary, as appropriate, shall have the right to deduct from any payment of any kind otherwise due to a Participant, cash and/or Stock, valued at Fair Market Value on the date of payment, in an amount necessary to satisfy all Federal, state or
local taxes as required by law to be withheld with respect to such payment and, in the case of Awards paid in Stock, the Holder may be required to pay to the Company prior to delivery of such Stock, the amount of any such taxes which the Company is
required to withhold, if any, with respect to such Stock. The Company shall accept shares of Stock of equivalent Fair Market Value in payment of such withholding tax obligations if the Holder of the Award elects to make payment in such manner. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(f) <B>Claim to Awards and Employment or Service Rights.</B> No employee or other person shall have any claim or right to be granted an Award
under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or
service of the Company or any Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(g) <B>Designation and Change of Beneficiary. </B>Each Participant may file with the Committee a
written designation of one or more persons as the beneficiary who shall be entitled to receive the rights or amounts payable with respect to an Award due under the Plan upon his or her death. A Participant may, from time to time, revoke or change
his or her beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless received by the Committee prior to the Participant&#146;s death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by the
Participant, the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(h) <B>Payments to Persons Other than Participants.</B> If the Committee shall find that any person to whom any amount is payable under the
Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative)
may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to be a proper recipient on behalf of such person
otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) <B>No Liability of Committee Members.</B> No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on such member&#146;s behalf in such member&#146;s capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the
Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or
liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person&#146;s own fraud or willful bad faith; provided, however, that
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">19 </P>

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approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company&#146;s Amended and Restated Certificate of Incorporation or <FONT STYLE="white-space:nowrap">By-Laws,</FONT> as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(j) <B>Governing Law.</B> Except as to matters of federal law, the Plan and the
rights of all Holders claiming hereunder, shall be governed by and construed in accordance with the internal laws of the State of Connecticut without regard to the principles of conflicts of law thereof. All outstanding Awards granted under the
Predecessor Plan shall continue to be governed and interpreted solely under the terms of the Predecessor Plan and shall not be subject to the terms hereof. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(k) <B>Funding. </B>No provision of the Plan shall require the Company, for the purpose of satisfying any obligations under the Plan, to
purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts, books, records or other evidence of the existence of a
segregated or separately maintained or administered fund for such purposes. Holders shall have no rights under the Plan other than as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of
additional compensation by performance of services, they shall have the same rights as other employees under general law. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(l)
<B>Nontransferability.</B> A person&#146;s rights and interest under the Plan, including amounts payable, may not be sold, assigned, donated, or transferred or otherwise disposed of, mortgaged, pledged or encumbered except, in the event of a
Holder&#146;s death, to a designated beneficiary to the extent permitted by the Plan, or in the absence of such designation, by will or the laws of descent and distribution; provided, however, the Committee may, in its sole discretion, allow in an
Award Agreement for transfer of Awards other than Incentive Stock Options to other persons or entities as otherwise provided by applicable law. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(m) <B>Reliance on Reports.</B> Each member of the Committee and each member of the Board shall be fully justified in relying, acting or
failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Subsidiaries and upon any other information furnished in connection
with the Plan by any person or persons other than such member. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(n) <B>Relationship to Other Benefits; Other Plans.</B> Any Award granted
under the Plan shall not be deemed compensation for purposes of computing benefits under any retirement plan of the Company or any Subsidiary and shall not affect any benefits under any other employee benefit plan now or subsequently in effect under
which the availability or amount of benefits is related to the level of compensation, except as otherwise specifically provided in any other employee benefit plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(o) <B>Expenses.</B> The expenses of administering the Plan shall be borne by the Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">20 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(p) <B>Titles and Headings.</B> The titles and headings of the sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings shall control. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(q) <B><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Change-in-Control.</FONT></FONT></B> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(i) <B>Accelerated Vesting and Exercisability. </B>Except as otherwise provided by the Committee in an Award Agreement, if a &#147;<I><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">Change-in-Control</FONT></FONT></I>&#148;, as defined below, occurs, then: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(A)
the vesting periods of any and all Incentive Stock Options and <FONT STYLE="white-space:nowrap">Non-Qualified</FONT> Stock Options granted and outstanding under the Plan shall immediately be accelerated; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(B) the restrictions and/or conditions applicable to any and all other Awards granted and outstanding under the Plan (including any Restricted
Stock, Performance Share Unit or Performance Cash Unit Awards) shall immediately lapse and be of no further force and effect; such that (except as otherwise provided in Section&nbsp;11(q)(iii) hereof) the respective Holders thereof shall have the
immediate, fully vested, right to purchase, receive and/or own without risk of forfeiture any and all cash and/or Stock that is the subject of the Award on the terms and conditions set forth in this Plan and the particular Award Agreement, provided
however, that, if the <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Change-in-Control&#148;</FONT></FONT> occurs with respect to a Subsidiary, only Awards and Options granted to employees of such Subsidiary shall be subject
to the accelerated vesting provisions of this Section&nbsp;11(q)(i). </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(ii) <B>Change in Control Defined. </B>A &#147;Change in
Control&#148; shall be deemed to have occurred if after the date an Award is granted (A)&nbsp;a public announcement shall be made or a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section&nbsp;13(d)
of the Exchange Act disclosing that any Person (as defined below), other than Company or a Subsidiary or any employee benefit plan sponsored by Company or a Subsidiary, is the beneficial owner (as the term is defined in Rule <FONT
STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act) directly or indirectly, of twenty (20%) percent or more of the total voting power represented by Company&#146;s or a Subsidiary&#146;s then outstanding voting common stock (calculated
as provided in paragraph (d)&nbsp;of Rule <FONT STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act in the case of rights to acquire voting common stock); or (B)&nbsp;any Person, other than Company or a Subsidiary or any employee benefit
plan sponsored by Company or a Subsidiary, shall purchase shares pursuant to a tender offer or exchange offer to acquire any voting common stock of Company or a Subsidiary (or securities convertible into such voting common stock) for cash,
securities or any other consideration, provided that after consummation of the offer, the Person in question is the beneficial owner directly or indirectly, of twenty (20%) percent or more of the total voting power represented by Company&#146;s or a
Subsidiary&#146;s then outstanding voting common stock (all as calculated under clause (A)); or (C)&nbsp;the stockholders of Company or a Subsidiary shall approve (X)&nbsp;any consolidation or merger of Company or a Subsidiary in which Company or a
Subsidiary is not the continuing or surviving corporation (other than a consolidation or merger of Company or a Subsidiary in which holders of the outstanding capital stock of Company or a Subsidiary immediately prior to the consolidation or merger
have the same proportionate ownership of the outstanding capital stock of the surviving corporation immediately after the consolidation or merger as immediately before), or pursuant to which the outstanding capital stock of Company or a Subsidiary
would be </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">21 </P>

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converted into cash, securities or other property, or (Y)&nbsp;any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the
assets of Company or a Subsidiary; or (D)&nbsp;there shall have been a change in the composition of the Board of Directors of Company or a Subsidiary at any time during any consecutive twenty-four (24)&nbsp;month period such that &#147;continuing
directors&#148; cease for any reason to constitute at least a majority of the Board of Directors unless the election, or the nomination for election of each new Director was approved by a vote of at least
<FONT STYLE="white-space:nowrap">two-thirds</FONT> ( 2/3) of the Directors then still in office who were Directors at the beginning of such period; or (E)&nbsp;the Board of Directors of Company or a Subsidiary, by a vote of a majority of all the
Directors adopts a resolution to the effect that a <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Change-in-Control&#148;</FONT></FONT> has occurred for purposes of this Agreement. For purposes of this Section&nbsp;11(q),
the term &#147;Person&#148; shall mean any individual, corporation, partnership, company or other entity, and shall include a &#147;group&#148; within the meaning of Section&nbsp;13(d)(3) of the Exchange Act. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(iii) Notwithstanding the provisions of Section&nbsp;11(q)(i) above, in the event that: (A)&nbsp;a Change in Control occurs; or (B)&nbsp;the
Company enters into a written agreement to engage in one or more events or transactions that would constitute a Change in Control, then the Committee may, in its sole discretion and upon at least ten (10)&nbsp;calendar days advance notice to the
affected persons, cancel each outstanding Award that is subject to the accelerated vesting provisions of Section&nbsp;11(q)(i) hereof and pay to the Holder thereof, in cash, an amount equal to the value of such Award (which value, in the case of
each Performance Share Unit or Performance Cash Unit Award, shall be deemed equal to 100% of the initial target value of such Award as previously determined by the Committee) based upon the price per share of Stock received or to be received by
other stockholders of the Company or a Subsidiary in the event. The terms of this Section&nbsp;11(q)(iii) may be varied by the Committee in any particular Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(r) <B>Conflicts.</B> If any of the terms or provisions of the Plan or an Award Agreement conflict with the requirements of Section&nbsp;422 of
the Code, then such terms or provisions shall be deemed inoperative to the extent they so conflict with such requirements. Additionally, if this Plan or any Award Agreement does not contain any provision required to be included herein under
Section&nbsp;422 of the Code, such provision shall be deemed to be incorporated herein and therein with the same force and effect as if such provision had been set out at length herein and therein. If any of the terms or provisions of any Award
Agreement conflict with any terms or provisions of the Plan, then such terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of the Plan. Additionally, if any Award Agreement does not contain any
provision required to be included therein under the Plan, such provision shall be deemed to be incorporated therein with the same force and effect as if such provision had been set out at length therein. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(s) <B>Prohibition Against Loans.</B> Anything in the Plan to the contrary notwithstanding, neither the Company nor any Subsidiary shall make a
loan to any officer, director, employee or consultant of the Company or any Subsidiary for the purpose of obtaining the benefits of any Award under the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(t) <B>Right of Offset.</B> To the extent permitted by law, the Company or any Subsidiary shall have the right to deduct from any payment of
any kind otherwise due to the Holder from the Company or any Subsidiary, under the Plan or any Award Agreement entered into hereunder, any amounts due and owing to the Company or any Subsidiary, as the case may be, from the Holder. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">22 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">(u) <B>Section</B><B></B><B>&nbsp;162(m) Exemption.</B> When granting any Performance Cash
Unit, Performance Share Unit, Restricted Stock, or other Award (other than Options which meet the definition of a Qualified Performance-Based Award), the Committee may designate as a Qualified Performance-Based Award any such Award that the
Committee determines in good faith meets the requirements of a Qualified Performance Based Award, based upon the Committee&#146;s determination that the recipient is or may be a Covered Employee with respect to such Award and that the Committee
wishes such Award to qualify for the Section&nbsp;162(m) Exemption. The payment of compensation pursuant to Awards designated as Qualified Performance-Based Awards (other than Options) to a Covered Employee for any calendar year shall not exceed
$250,000. The maximum number of shares of Stock underlying Options that may be awarded to a Covered Employee for any calendar year shall not exceed 25,000 shares and their exercise price shall be the Fair Market Value of the Stock on the Date of
Grant. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>12. Changes in Capital Structure </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Awards granted under the Plan and any Award Agreements shall be subject to equitable adjustments, as determined by the Committee in its sole
discretion, as to the number, price or kind of a share of Stock or other consideration subject to such Awards; (a)&nbsp;in the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason of stock dividends,
stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the Date of Grant of any such Award, (b)&nbsp;in the event of any
change in applicable laws or any change in circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan, or (c)&nbsp;upon the occurrence of any other
event which otherwise warrants equitable adjustment because it interferes with the intended operation of the Plan. In addition, in the event of any such corporate or other event, the aggregate number of shares of Stock available under the Plan and
the maximum number of shares of Stock with respect to which any one person may be granted in connection with Awards shall be appropriately adjusted by the Committee, whose determination shall be conclusive. The terms of this Section&nbsp;12&nbsp;may
be varied by the Committee in any particular Award Agreement. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>13. Nonexclusivity of the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed
as creating any limitations on the power of the Board to adopt such other additional incentive arrangements (subject to stockholder approval if such approval is required) as it may deem desirable, including, without limitation, the awarding of
Stock, Options, other Awards or cash otherwise than under the Plan, and such arrangements may be either applicable generally or applicable only in specific cases. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">23 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>14. Amendment and Termination </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Board may at any time terminate the Plan. Subject to Section&nbsp;5(e) hereof, with the express written consent of an individual
Participant, the Committee may cancel, reduce or otherwise alter outstanding Awards. The Committee may, at any time, or from time to time, amend or suspend and, if suspended, reinstate, the Plan in whole or in part; provided that any such amendment
shall be contingent on obtaining the approval of the stockholders of the Company if the Committee determines that such approval is necessary to comply with any requirement of law, including the requirements for qualification of Incentive Stock
Options or rule of any stock exchange or automated quotation system on which the Company&#146;s equity securities are traded or quoted; and provided further that the Committee shall not take any of the following actions without the prior approval of
the Company&#146;s stockholders at a meeting duly held in accordance with the applicable laws of the state of Connecticut: (a)&nbsp;amending the Plan to repeal the prohibition against repricing set forth in Section&nbsp;5(e) hereof;
(b)&nbsp;expanding the definition of &#147;Eligible Person&#148; under the Plan; (c)&nbsp;increasing the aggregate number of shares of Stock reserved and available for issuance under the Plan set forth in Section&nbsp;5(a) hereof (except as
otherwise provided in Section&nbsp;12 hereof); (d) increasing the individual share limitation set forth in Section&nbsp;5 hereof; (e)&nbsp;decreasing the exercise price of Options to be awarded under the Plan to any amount lower than 100% of the
Stock&#146;s Fair Market Value on the date of the Award; (f)&nbsp;extending the maximum Option duration under the Plan; or (g)&nbsp;extending the duration of the Plan beyond that specified in Section&nbsp;3 hereof. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As adopted by the Board of Directors of Connecticut Water Service, Inc. on January&nbsp;7, 2004. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">24 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXHIBIT 99.3 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>CONNECTICUT WATER SERVICE, INC. PERFORMANCE STOCK PROGRAM </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>AMENDED AND RESTATED AS OF APRIL&nbsp;26, 2002 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>1. Purpose </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The purpose of the Plan is to
provide a means through which the Company may attract able persons to enter and remain in the employ with the Company and its Subsidiaries and to provide a means whereby they can acquire and maintain Common Stock ownership, or be paid incentive
compensation measured by reference to the value of Common Stock, thereby strengthening their commitment to the welfare of the Company and promoting an identity of interest between stockholders of the Company and these employees. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">So that the appropriate incentive can be provided, the Plan provides for granting Incentive Stock Options, Nonqualified Stock Options,
Restricted Stock Awards, and Performance Share or Cash Unit Awards, or any combination of the foregoing. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>2. Definitions </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The following definitions shall be applicable throughout the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) &#147;<I>Award</I>&#148; means, individually or collectively, any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock
Award, or Performance Share or Cash Unit Award under the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) &#147;<I>Award Agreement</I>&#148; means the agreement between the
Company and a Participant who has been granted an Award which defines the rights and obligations of the parties with respect to such Award. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) &#147;<I>Award Period</I>&#148; means a period of time within which performance is measured for the purpose of determining whether an Award
of Performance Share or Cash Units has been earned. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) &#147;<I>Board</I>&#148; means the Board of Directors of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) &#147;<I>Code</I>&#148; means the Internal Revenue Code of 1986, as amended. Reference in the Plan to any section of the Code shall be
deemed to include any amendments or successor provisions to such section and any regulations under such section. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f)
&#147;<I>Committee</I>&#148; means the Compensation Committee of the Board, or, if the Board so directs, the full Board or another committee appointed by the Board to administer the Plan as described in Section&nbsp;4. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) &#147;<I>Common Stock</I>&#148; means the common stock of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) &#147;<I>Company</I>&#148; means Connecticut Water Services, Inc. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) &#147;<I>Date of Grant</I>&#148; means the date on which the granting of an Award is
authorized or such other date as may be specified in such authorization. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(j) &#147;<I>Disability</I>&#148; means &#147;permanent and total
disability&#148; as defined in Section&nbsp;22(e)(3) of the Code. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(k) &#147;<I>Eligible Person</I>&#148; means any person regularly
employed by the Company or a Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(l) &#147;<I>Exchange Act</I>&#148; means the Securities Exchange Act of 1934, as amended. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(m) &#147;<I>Fair Market Value</I>&#148; on a given date means (i)&nbsp;if the Stock is listed on a national securities exchange, the mean
between the highest and lowest sale prices reported as having occurred on the primary exchange with which the Stock is listed and traded on the date prior to such date, or, if there is no such sale on that date, then on the last preceding date on
which such a sale was reported; (ii)&nbsp;if the Stock is not listed on any national securities exchange but is quoted in the National Market System of the National Association of Securities Dealers Automated Quotation System on a last sale basis,
the average between the high bid price and low ask price reported on the date prior to such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported; or (iii)&nbsp;if the Stock is not listed on a
national securities exchange nor quoted in the National Market System of the National Association of Securities Dealers Automated Quotation System on a last sale basis, the amount determined by the Committee to be the fair market value based upon a
good faith attempt to value the Stock accurately. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(n) &#147;<I>Holder</I>&#148; means a Participant who has been granted an Award, or a
permitted transferee of such a Participant. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(o) &#147;<I>Incentive Stock Option</I>&#148; means an Option granted by the Committee to a
Participant under the Plan which is designated by the Committee as an &#147;incentive stock option&#148; within the meaning of Section&nbsp;422 of the Code. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(p) &#147;<I>Nonqualified Stock Option</I>&#148; means an Option granted under the Plan which is not designated as an Incentive Stock Option.
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(q) &#147;<I>Normal Termination</I>&#148; means termination of employment or service with the Company or a Subsidiary other than by reason
of death or Disability. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(r) &#147;<I>Option</I>&#148; means an Award granted under Section&nbsp;7 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(s) &#147;<I>Option Period</I>&#148; means the period described in Section&nbsp;7(c). </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(t) &#147;<I>Option Price</I>&#148; means the exercise price set for an Option described in Section&nbsp;7(a). </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">2 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(u) &#147;<I>Participant</I>&#148; means an Eligible Person who has been selected by the
Committee to participate in the Plan and to receive an Award pursuant to Section&nbsp;6. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) <I>&#147;Performance Goals</I>&#148; means
the performance objectives established by the Committee with respect to an Award Period or Restricted Period, with respect to Performance Share or Cash Units or Restricted Stock, respectively, established for the purpose of determining whether, and
to what extent, such Awards will be earned for an Award Period or Restricted Period. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(w) &#147;<I>Performance Cash Unit</I>&#148; means a
hypothetical equivalent to a number of dollars established by the Committee and granted in connection with an Award made under Section&nbsp;8 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(x) &#147;<I>Performance Share Unit</I>&#148; means a hypothetical investment equivalent equal to one share of Stock granted in connection with
an Award made under Section&nbsp;8 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(y) &#147;<I>Plan</I>&#148; means the Company&#146;s Performance Stock Program, as
amended. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(z) &#147;<I>Restricted Period</I>&#148; means, with respect to any share of Restricted Stock, the period of time determined by
the Committee during which such Award is subject to the restrictions set forth in Section&nbsp;9 of the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(aa) &#147;<I>Restricted
Stock</I>&#148; means shares of Stock issued or transferred to a Participant subject to forfeiture and the other restrictions set forth in Section&nbsp;9 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(bb) &#147;<I>Restricted Stock Award</I>&#148; means an Award of Restricted Stock granted under Section&nbsp;9 of the Plan. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(cc) &#147;<I>Securities Act</I>&#148; means the Securities Act of 1933, as amended. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(dd) &#147;<I>Stock</I>&#148; means the Common Stock or such other authorized shares of stock of the Company as from time to time may be
authorized for use under the Plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ee) &#147;<I>Subsidiary</I>&#148; means any corporation 50% or more of whose stock having general
voting power is owned by the Company, or by another Subsidiary, as herein defined, of the Company. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>3. Effective Date, Duration and Shareholder
Approval </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan was first made effective as of April&nbsp;19, 1991. This amendment and restatement of the Plan is to be effective as
of April&nbsp;26, 2002, and the validity of any and all Awards granted pursuant to the amended and restated Plan is contingent upon approval of the Plan by the stockholders of the Company in a manner which complies with Section&nbsp;422(b)(1) of the
Code and Section&nbsp;162(m)(4)(C)(ii) of the Code. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">3 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The expiration date of the Plan, after which no Awards may be granted hereunder, shall be
April&nbsp;22, 2004; provided, however, that the administration of the Plan shall continue in effect until all matters relating to the payment of Awards previously granted have been settled. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>4. Administration </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Plan shall be
administered by the Committee, which shall be composed of at least two persons, each member of which, at the time he or she takes any action with respect to an Award under the Plan, shall be a
<FONT STYLE="white-space:nowrap">&#147;Non-Employee</FONT> Director&#148;, as defined in Rule <FONT STYLE="white-space:nowrap">16b-3</FONT> under the Exchange Act, or any successor rule or regulation, and an &#147;outside director&#148;, as defined
in Treasury Regulations sec. <FONT STYLE="white-space:nowrap">1.162-27(e)(3),</FONT> or any successor regulation. The majority of the members of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at
which a quorum is present or acts approved in writing by a majority of the Committee shall be deemed the acts of the Committee. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Subject
to the provisions of the Plan, the Committee shall have exclusive power to: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) Select the Eligible Persons to participate in the Plan;
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) Determine the nature and extent of the Awards to be made to each Participant; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) Determine the time or times when Awards will be made to Eligible Persons; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) Determine the duration of each Award Period and Restricted Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) Determine the conditions to which the payment of Awards may be subject; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) Establish the Performance Goals, if any, for each Award Period; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) Prescribe the form of Award Agreement or other form or forms evidencing Awards; and </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) Cause records to be established in which there shall be entered, from time to time as Awards are made to Eligible Persons, the date of each
Award, the number of Incentive Stock Options, Nonqualified Stock Options, Performance Share or Cash Units, and shares of Restricted Stock awarded by the Committee to each Eligible Person, and the expiration date and the duration of any applicable
Award Period or Restricted Period. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee shall have the authority, subject to the provisions of the Plan, to establish, adopt, or
revise such rules and regulations and to make all such determinations relating to the Plan as it may deem necessary or advisable for the administration of the Plan. The Committee&#146;s interpretation of the Plan or any documents evidencing Awards
granted pursuant thereto and all decisions and determinations by the Committee with respect to the Plan shall be final, binding, and conclusive on all parties unless otherwise determined by the Board. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>5. Grant of Awards; Shares Subject to the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee may, from time to time, grant Awards of Options, Restricted Stock, and/or Performance Share or Cash Units to one or more Eligible
Persons; provided, however, that: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) Subject to Section&nbsp;12, the aggregate number of shares of Stock made subject to all Awards may
not exceed 700,000, and the aggregate number of shares of Stock subject to Awards to any single individual may not exceed 150,000. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b)
Such shares shall be deemed to have been used in payment of Awards whether they are actually delivered or the Fair Market Value equivalent of such shares is paid in cash. In the event any Option, Restricted Stock Award, or Performance Share or Cash
Unit shall be surrendered, terminate, expire, or be forfeited, the number of shares of Stock no longer subject thereto shall thereupon be released and shall thereafter be available for new Awards under the Plan; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) Stock delivered by the Company in settlement of Awards under the Plan may be authorized and unissued Stock or Stock held in the treasury of
the Company or may be purchased on the open market or by private purchase; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) The Committee may, in its sole discretion, require a
Participant to pay consideration for an Award in an amount and in a manner as the Committee deems appropriate. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) Notwithstanding
anything to the contrary in Sections 12 or 14 hereof, or any other applicable provision of the Plan, the Option Price of an outstanding Option granted under the Plan may not be decreased after the date of grant nor may an outstanding Option granted
under the Plan be surrendered to the Company as consideration for the grant of a new Option with a lower Option Price. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>6. Eligibility </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Participation shall be limited to Eligible Persons selected by the Committee. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>7. Stock Options </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Committee is
authorized to grant one or more Incentive Stock Options or Nonqualified Stock Options to any Eligible Person. Each Option so granted shall be subject to the following conditions or to such other conditions as may be reflected in the applicable Award
Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <B>Option Price.</B> The exercise price (&#147;<I>Option Price</I>&#148;) per share of Stock for each Option shall be set
by the Committee at the time of grant but shall not be less than the Fair Market Value of a share of Stock at the Date of Grant. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <B>Manner of Exercise and Form of Payment.</B> Options which have become exercisable may
be exercised by delivery of written notice of exercise to the Committee accompanied by payment of the Option Price. The Option Price shall be payable either by (i) United States dollars in cash or by check, (ii)&nbsp;at the discretion of the
Committee, through shares of Stock valued at the Fair Market Value at the time the Option is exercised (provided that such Stock has been held by the Participant for at least six months), or (iii)&nbsp;at the discretion of the Committee, by any
combination of (i)&nbsp;and (ii) above. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <B>Option Period and Expiration.</B> Options shall vest and become exercisable in such manner
and on such date or dates determined by the Committee and shall expire after such period, not to exceed ten years with respect to Incentive Stock Options, as may be determined by the Committee (the &#147;Option Period&#148;); provided, however, that
notwithstanding any vesting dates set by the Committee, the Committee may, in its sole discretion, accelerate the exercisability of any Option, which acceleration shall not affect the terms and conditions of any such Option other than with respect
to exercisability. If an Option is exercisable in installments, such installments or portions thereof which become exercisable shall remain exercisable until the Option expires. Unless otherwise stated in the applicable Option Award Agreement, an
Incentive Stock Option shall expire earlier than the end of the Option Period in the following circumstances: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) If prior to the end of
the Option Period, the Participant shall undergo a Normal Termination, the Incentive Stock Option shall expire on the earlier of the last day of the Option Period or the date that is ninety days after the date of such Normal Termination. In such
event, the Incentive Stock Option shall remain exercisable by the Holder until its expiration, only to the extent the Option was exercisable at the time of such Normal Termination; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) If the Participant dies prior to the end of the Option Period and while still in the employ of the Company or such Participant becomes
Disabled, the Incentive Stock Option shall expire on the earlier of the last day of the Option Period or the date that is one year after the date of death or Disability of the Participant. In the event of death or Disability, the Incentive Stock
Option shall remain exercisable by the Participant or the Holder or Holders to whom the Participant&#146;s rights under the Incentive Stock Option pass by will or the applicable laws of descent and distribution until its expiration, only to the
extent the Incentive Stock Option was exercisable by the Participant at the time of death or Disability. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In granting any Nonqualified
Stock Option, the Committee may specify that such Nonqualified Stock Option shall be subject to the restrictions set forth in Section&nbsp;7(c)(i) or (ii)&nbsp;herein with respect to Incentive Stock Options, or such other termination and
cancellation provisions as the Committee may determine. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <B>Other Terms and Conditions.</B> In addition, each Option granted under the
Plan shall be evidenced by an Award Agreement, which shall contain such provisions as may be determined by the Committee and, except as may be specifically stated otherwise in such Award Agreement, which shall be subject to the following terms and
conditions: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Each Option issued pursuant to this Section&nbsp;7 or portion thereof that is exercisable shall be exercisable for the
full amount or for any part thereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) Each share of Stock purchased through the exercise of an Option issued pursuant to this
Section&nbsp;7 shall be paid for in full at the time of the exercise. Each Option shall cease to be exercisable, as to any share of Stock, when the Holder purchases the share or when the Option expires. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">6 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Subject to Section&nbsp;11(k), Options issued pursuant to this Section&nbsp;7 shall
not be transferable by the Holder except by will or the laws of descent and distribution and shall be exercisable during the Holder&#146;s lifetime only by the Holder. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) Each Option issued pursuant to this Section&nbsp;7 shall vest and become exercisable by the Holder in accordance with the vesting schedule
established by the Committee and set forth in the Award Agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) Each Award Agreement may contain a provision that, upon demand by
the Committee for such a representation, the Holder shall deliver to the Committee at the time of any exercise of an Option issued pursuant to this Section&nbsp;7 a written representation that the shares to be acquired upon such exercise are to be
acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the delivery of any shares issued upon exercise of an Option issued pursuant to this Section&nbsp;7
shall be a condition precedent to the right of the Holder to purchase any shares. In the event certificates for Stock are delivered under the Plan with respect to which such investment representation has been obtained, the Committee may cause a
legend or legends to be placed on such certificates to make appropriate reference to such representation and to restrict transfer in the absence of compliance with applicable federal or state securities laws. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(vi) Each Incentive Stock Option Award Agreement shall contain a provision requiring the Holder to notify the Company in writing immediately
after the Holder makes a disqualifying disposition of any Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including any sale) of such Stock before the later of (a)&nbsp;two
years after the Date of Grant of the Incentive Stock Option or (b)&nbsp;one year after the date the Holder acquired the Stock by exercising the Incentive Stock Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman"><B></B><B></B><B></B><B></B><B></B>(e)<B> Incentive Stock Option Grants to 10% Stockholders.</B> Notwithstanding anything to the contrary in
this Section&nbsp;7, if an Incentive Stock Option is granted to a Participant who owns stock representing more than ten percent of the voting power of all classes of stock of the Company or of a Subsidiary, the Option Period shall not exceed five
years from the Date of Grant of such Option and the Option Price shall be at least 110&nbsp;percent of the Fair Market Value (on the Date of Grant) of the Stock subject to the Option. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) <B>$100,000 Per Year Limitation for Incentive Stock Options.</B> To the extent the aggregate Fair Market Value (determined as of the Date
of Grant) of Stock for which Incentive Stock Options are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and its Subsidiaries) exceeds $100,000, such excess Incentive Stock Options shall be
treated as Nonqualified Stock Options. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">7 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) <B>Voluntary Surrender.</B> The Committee may permit the voluntary surrender of all or
any portion of any Nonqualified Stock Option issued pursuant to this Section&nbsp;7 granted under the Plan to be conditioned upon the granting to the Holder of a new Option for the same or a different number of shares as the Option surrendered or
require such voluntary surrender as a condition precedent to a grant of a new Option to such Participant. Such new Option shall be exercisable at an Option Price, during an Option Period, and in accordance with any other terms or conditions
specified by the Committee at the time the new Option is granted, all determined in accordance with the provisions of the Plan without regard to the Option Price, Option Period, or any other terms and conditions of the Nonqualified Stock Option
surrendered. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) <B>Conversion of Incentive Stock Options into Nonqualified Stock Options; Termination of Incentive Stock Options.</B> The
Committee, at the written request of any Holder, may in its discretion, take such actions as may be necessary to convert such Holder&#146;s Incentive Stock Options (or any installments or portions of installments thereof) that have not been
exercised on the date of conversion into Nonqualified Stock Options at any time prior to the expiration of such Incentive Stock Options, regardless of whether the Holder is an employee of the Company or a Subsidiary at the time of such conversion.
Such actions may include, but not be limited to, extending the Option Period or reducing the exercise price of the appropriate installments of such Incentive Stock Options. At the time of such conversion, the Committee (with the consent of the
Holder) may impose such conditions on the exercise of the resulting Nonqualified Stock Options as the Committee in its discretion may determine, provided that such conditions shall not be inconsistent with the Plan. Nothing in the Plan shall be
deemed to give any Holder the right to have such Holder&#146;s Incentive Stock Options converted into Nonqualified Stock Options, and no such conversion shall occur until and unless the Committee takes appropriate action. The Committee, with the
consent of the Holder, may also terminate any portion of any Incentive Stock Option that has not been exercised at the time of such termination. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>8.
Performance Share or Cash Units </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <B>Award Grants.</B> The Committee is authorized to establish performance programs to be effective
over designated Award Periods determined by the Committee. The Committee may grant Awards of Performance Share or Cash Units to Eligible Persons in accordance with such performance programs. Before or within 90 days after the beginning of each Award
Period, the Committee will establish written Performance Goals based upon financial objectives for the Company for such Award Period and a schedule relating the accomplishment of the Performance Goals to the Awards to be earned by Participants.
Performance Goals may include absolute or relative growth in earnings per share or rate of return on stockholders&#146; equity or other measurement of corporate performance and may be determined on an individual basis or by categories of
Participants. The Committee shall determine the number of Performance Share or Cash Units to be awarded, if any, to each Eligible Person who is selected to receive such an Award. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman"><B></B>(b)<B> Determination of Award.</B> At the completion of a Performance Award Period, or at other times as specified by the Committee, the
Committee shall calculate the number of shares of Stock or amount of cash earned with respect to each Participant&#146;s Performance Share or Cash Unit Award by multiplying the number of Performance Units granted to the Participant by a performance
factor representing the degree of attainment of the Performance Goals. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">8 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <B>Payment of Performance Share or Cash Unit Awards.</B> Performance Share or Cash Unit
Awards shall be payable in that number of shares of Stock or that amount of cash determined in accordance with Section&nbsp;8(b); provided, however, that, at its discretion, the Committee may make payment to any Participant of Performance Share
Units in the form of cash upon the specific request of such Participant. The amount of any payment made in cash shall be based upon the Fair Market Value of the Stock on the business day prior to payment. Payments of Performance Unit Awards shall be
made as soon as practicable after the completion of an Award Period; provided, however, that if a Participant makes the election described below, Performance Share or Cash Units (with any Cash Units being converted into equivalent Performance
Shares) shall instead be credited to the Participant&#146;s Performance Share Account. Such credit of Performance Shares to a Participant&#146;s Performance Share Account shall be made as of the same date as payment of the Award would have been made
to the Participant had no prior election been made. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <B>Elections. </B>Any election to have an Award or a portion of an Award credited
to a Performance Share Account shall be made on a written form provided by the Company for such purpose and shall only be effective with respect to Awards that may be made on and after the January&nbsp;1 following the Company&#146;s receipt of such
form, provided that such form is received by the December&nbsp;24 prior to the applicable January 1. Any such election shall be made only in increments of ten percent (10%) of the Award (rounded to the nearest whole share) and shall be effective
only for Awards made during the year in which the election becomes effective. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) <B>Performance Share Account.</B> The Company shall
maintain on its books and records a Performance Share Account to record its liability for future payments to the Participant or his beneficiary pursuant to the Plan. However, a Performance Share Account under the Plan shall constitute an unfunded
arrangement; the Company shall not be required to segregate or earmark any of its assets for the benefit of the Participant or his beneficiary, and the amount reflected in a Performance Share Account shall be available for the Company&#146;s general
corporate purposes and shall be available to the Company&#146;s general creditors. The amount reflected in a Performance Share Account shall not be subject in any manner to anticipation, alienation, transfer or assignment by the Participant or his
or her beneficiary, and any attempt to anticipate, alienate, transfer or assign the same shall be void. Neither the Participant nor his or her beneficiary may assert any right or claim against any specific assets of the Company in respect of a
Performance Share Account, and the Participant and his or her beneficiary shall have only a contractual right against the Company for the amount reflected in a Performance Share Account. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Notwithstanding the foregoing, in order to pay amounts which may become due under the Plan in respect of a Participant&#146;s Performance Share
Account, the Company may establish a grantor trust (hereinafter the &#147;Trust&#148;) within the meaning of Section&nbsp;671 of the Code. Some or all of the assets of the Trust may be dedicated to providing benefits to the Participants pursuant to
the Plan, but, nevertheless, all assets of the Trust shall at all times remain subject to the claims of the Company&#146;s general creditors in the event of the Company&#146;s bankruptcy or insolvency. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">9 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) <B>Dividend Equivalents.</B> On every date on which a dividend or other distribution
is paid with respect to Common Stock, commencing with the first such payment date after the date on which a Performance Share is credited to a Participant&#146;s Performance Share Account and continuing until such Performance Share is either
forfeited or paid out, there shall be credited to the Participant&#146;s Performance Share Account a Dividend Equivalent in respect of such Performance Share. A Dividend Equivalent shall mean, with respect to a whole Performance Share credited to a
Participant&#146;s Performance Share Account, a measure of value equal to the fractional share of Common Stock that could be purchased with the amount that would have been paid to the Participant as a dividend or other distribution if the
Participant had owned a whole share of Common Stock in lieu of said whole Performance Share, the date of such deemed purchase being the dividend payment date. Dividend Equivalents are expressed in the form of Performance Shares. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iv) <B>Participant Not a Stockholder.</B> The Participant shall have no stockholder&#146;s rights with respect to any shares of Common Stock
in respect of which Performance Shares are credited to his or her Performance Share Account. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(v) <B>Payments in Respect of Performance
Shares.</B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">1. <I>Termination of Employment:</I> In the event of a Participant&#146;s Normal Termination and without a payment date having
been specified as provided below, such Participant shall be entitled to receive payment in respect of the entire amount then credited to his or her Performance Share Account. Such payment shall be made in the form of the number of shares of Common
Stock equal to the number of whole Performance Shares then credited to the Participant&#146;s Performance Share Account, with any fractional Performance Share being paid in cash determined on the basis of the value of a corresponding fractional
share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be transferred to the Participant within sixty (60)&nbsp;days after the Participant&#146;s termination of employment. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">2. <I>Election of Participant:</I> Upon prior written election by a Participant, the Participant shall be entitled to receive payment in
respect of an Award of Performance Shares, to the extent then vested, and any Dividend Equivalents earned on such Award on the date or dates specified in such written election. Such election must either be made as part of the election to have such
Award of Performance Shares credited to a Performance Share Account as provided above, or at any time at least one year prior to the date on which such payment would otherwise be made. Such payment shall be made in the form of the number of shares
of Common Stock equal to the number of whole Performance Shares, including related Dividend Equivalents, then credited to the Participant&#146;s Performance Share Account with respect to such Award, with any fractional Performance Share being paid
in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. The Participant&#146;s Performance Share Account thereafter shall be reduced to reflect the foregoing
payment. Nothing herein shall preclude separate elections with respect to separate Awards. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">10 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">3. <I>Disability or Death While Employed by the Company:</I> Notwithstanding an election
made pursuant to the preceding section, in the event of a Participant&#146;s termination of employment for reasons of Disability or death, Participant or his or her beneficiary, as the case may be, shall be entitled to receive payment in respect of
the entire amount then credited to his or her Performance Share Account. Such payment shall be made in the form of the number of shares of Common Stock equal to the number of whole Performance Shares then credited to the Participant&#146;s
Performance Share Account, with any fractional Performance Share being paid in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common
Stock and any cash amount shall be transferred to the Participant or his or her beneficiary within sixty (60)&nbsp;days after the Company has been notified in writing of the Disability or death of the Participant and has been provided with any
additional information, forms or other documents it may reasonably request. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">4. <I>Hardship Payment:</I> Notwithstanding an election made
pursuant to the Plan or the Participant&#146;s continued employment with the Company, if the Committee, upon written petition of the Participant, determines, in the Committee&#146;s sole discretion, that the Participant has suffered an unforeseeable
financial emergency, the Participant shall be entitled to receive, as soon as practicable following such determination, payment sufficient to meet the cash needs arising from the unforeseeable financial emergency, not in excess of the number of
whole Performance Shares then credited to the Participant&#146;s Performance Share Account. Such payment shall be made, at the election of the Participant, either (i)&nbsp;in the form of the number of whole shares of Common Stock, the proceeds from
the sale of which would be sufficient to meet the cash needs arising from the unforeseeable financial emergency, not in excess of the number of whole Performance Shares then credited to the Participant&#146;s Performance Share Account; (ii)&nbsp;in
cash equal to the value on the business day preceding the date of payment of the number of whole shares of Common Stock available for payment under clause (i)&nbsp;of this sentence; or (iii)&nbsp;in any combination of the methods of payment provided
for in clauses (i)&nbsp;and (ii) of this sentence. In the event of a hardship payment in respect of the Participant&#146;s entire Performance Share Account, any fractional Performance Share shall be paid in cash determined on the basis of the value
of a corresponding fractional share of Common Stock on the business day preceding the date of payment. For purposes of the foregoing, an unforeseeable financial emergency is an unexpected need for cash arising from an illness, casualty loss, sudden
financial reversal, or other such unforeseeable occurrence. Cash needs arising from foreseeable events such as generally the purchase of a house or educational expenses for children shall not be considered to be the result of an unforeseeable
financial emergency. Said shares of Common Stock and any cash amount shall be transferred to the Participant as soon as practicable after the Committee determines that the Participant has suffered an unforeseeable financial emergency. The
Participant&#146;s Performance Share Account thereafter shall be reduced o reflect the foregoing payment. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">5. <I>Early Withdrawal:</I>
Notwithstanding an election made pursuant to the Plan or the Participant&#146;s continued employment with the Company, the Participant, upon written petition to the Committee at any time, shall be entitled to receive payment in respect of all or any
portion of the amount then credited to his or her Performance Share Account, subject to a forfeiture penalty of six percent (6%) of the amount of the payment requested by the Participant. Such payment shall be made, at the election of the
Participant, either (i)&nbsp;in the form of the number of shares of Common Stock equal to the number of whole Performance Shares requested by the Participant in the written petition and then credited to the Participant&#146;s Performance Share
</P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">11 </P>

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Account; (ii)&nbsp;in cash equal to the value on the business day preceding the date of payment of the number of whole shares of Common Stock available for payment under clause (i)&nbsp;of this
sentence; or (iii)&nbsp;in any combination of the methods of payment provided for in clauses (i)&nbsp;and (ii) of this sentence. In the event of an early withdrawal in respect of the Participant&#146;s entire Performance Share Account, any
fractional Performance Share shall be paid in cash determined on the basis of the value of a corresponding fractional share of Common Stock on the business day preceding the date of payment. Said shares of Common Stock and any cash amount shall be
transferred to the Participant within sixty (60)&nbsp;days after the Company has received the Participant&#146;s written petition. The Participant&#146;s Performance Share Account thereafter shall be reduced to reflect the foregoing payment and the
six percent (6%) forfeiture penalty. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <B>Adjustment of Performance Goals.</B> The Committee may, during the Award Period, make such
adjustments to Performance Goals as it may deem appropriate, to compensate for, or reflect, (i)&nbsp;extraordinary or <FONT STYLE="white-space:nowrap">non-recurring</FONT> events experienced during an Award Period by the Company or by any other
corporation whose performance is relevant to the determination of whether Performance Goals have been attained; (ii)&nbsp;any significant changes that may have occurred during such Award Period in applicable accounting rules or principles or changes
in the Company&#146;s method of accounting or in that of any other corporation whose performance is relevant to the determination of whether an Award has been earned; (iii)&nbsp;any significant changes that may have occurred during such Award Period
in tax laws or other laws or regulations that alter or affect the computation of the measures of Performance Goals used for the calculation of Awards; or (iv)&nbsp;any other factors which the Committee deems appropriate; provided, however, that no
such change may increase the amount of an Award that would otherwise be payable to any &#147;covered employee&#148; as defined in Section&nbsp;162(m)(3) of the Code. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>9. Restricted Stock Awards </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <B>Award
of Restricted Stock.</B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) The Committee shall have the authority (1)&nbsp;to grant Restricted Stock Awards, (2)&nbsp;to issue or
transfer Restricted Stock to Eligible Persons, and (3)&nbsp;to establish terms, conditions and restrictions applicable to such Restricted Stock, including the Restricted Period, which may differ with respect to each grantee, the time or times at
which Restricted Stock shall be granted or become vested and the number of shares to be covered by each grant. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) The Holder of a
Restricted Stock Award shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall
be held in escrow rather than delivered to the Holder pending the release of the applicable restrictions, the Holder additionally shall execute and deliver to the Company (1)&nbsp;an escrow agreement satisfactory to the Committee, and (2)&nbsp;the
appropriate blank stock powers with respect to the Restricted Stock covered by such agreements. If a Holder shall fail to execute a Restricted Stock Award Agreement and, if applicable, an escrow agreement and stock powers, the Award shall be null
and void. Subject to the restrictions set forth in Section&nbsp;9(b), the Holder shall generally have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock, and to receive dividends
paid thereon. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(iii) Upon the Award of Restricted Stock, the Committee shall cause a Stock certificate
registered in the name of the Holder to be issued and, if it so determines, deposited together with the Stock powers with an escrow agent designated by the Committee. If an escrow arrangement is used, the Committee shall cause the escrow agent to
issue to the Holder a receipt evidencing any Stock certificate held by it registered in the name of the Holder. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <B>Restrictions.</B>
</P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (1)&nbsp;if an escrow arrangement is used, the Holder shall not be entitled to delivery of the Stock certificate; (2)&nbsp;the shares shall be
subject to the restrictions on transferability set forth in the Award Agreement; and (3)&nbsp;the shares shall be subject to forfeiture to the extent provided in subparagraph (d)&nbsp;and the Award Agreement and, to the extent such shares are
forfeited, the Stock certificates shall be returned to the Company, and all rights of the Holder to such shares and as a shareholder shall terminate without further obligation on the part of the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(ii) The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock whenever it may determine that, by
reason of changes in applicable laws or other changes in circumstances arising after the date of the Restricted Stock Award, such action is appropriate. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <B>Restricted Period.</B> The Restricted Period of Restricted Stock shall commence on the Date of Grant and shall expire from time to time
as to that part of the Restricted Stock indicated in a schedule established by the Committee and set forth in the written Award Agreement. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <B>Forfeiture Provisions.</B> Except to the extent determined by the Committee and reflected in the underlying Award Agreement, in the
event a Participant terminates employment with the Company during a Restricted Period for any reason, that portion of the Award with respect to which restrictions have not expired shall be completely forfeited to the Company. In the event of such a
forfeiture, the amount of an Award that would otherwise be payable shall be reduced, but not below zero, by the amount of any dividends previously paid to the Holder with respect to the forfeited Restricted Stock. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) <B>Delivery of Restricted Stock.</B> Upon the expiration of the Restricted Period with respect to any shares of Stock covered by a
Restricted Stock Award, the restrictions set forth in Section&nbsp;9(b) and the Award Agreement shall be of no further force or effect with respect to shares of Restricted Stock which have not then been forfeited. If an escrow arrangement is used,
upon such expiration, the Company shall deliver to the Holder, or his or her beneficiary, without charge, the Stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted
Period has expired (to the nearest full share) and any cash dividends or Stock dividends credited to the Holder&#146;s account with respect to such Restricted Stock and the interest thereon, if any. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">13 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) <B>Stock Restrictions.</B> Each certificate representing Restricted Stock awarded under
the Plan shall bear the following legend until the end of the Restricted Period with respect to such Stock: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;Transfer of this
certificate and the shares represented hereby is restricted pursuant to the terms of a Restricted Stock Agreement, dated as of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; , between Connecticut
Water Service, Inc. and&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; . A copy of such Agreement is on file at the offices of the Company.&#148; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Stop transfer orders shall be entered with the Company&#146;s transfer agent and registrar against the transfer of legended securities. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) <B>Deferral.</B> Upon election by a Participant, a whole share of Restricted Stock that would otherwise have been granted to the
Participant shall instead be made in the form of Performance Shares, and such Performance Shares shall be credited to the Participant&#146;s Performance Share Account, subject to the provisions of Section&nbsp;8. Such credit of Performance Shares
shall be made as of the same date as Restricted Stock would have been awarded to the Participant had no prior election been made. Any such election shall be made by December&nbsp;24 prior to the year in which the Award for which the election is made
will be made, and shall otherwise comply with the requirements for elections in Section&nbsp;8(c). If an event occurs which would have caused forfeiture of the Restricted Stock for which an election pursuant to this paragraph is made, then the
equivalent Performance Shares, along with any related Dividend Equivalents, shall be forfeited. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>10.
<FONT STYLE="white-space:nowrap">Non-Competition</FONT> Provisions </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In addition to such other conditions as may be established by the
Committee, in consideration of the granting of Awards under the terms of the Plan, the Committee, in its discretion, may include <FONT STYLE="white-space:nowrap">non-competition</FONT> provisions in the applicable Award Agreement. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>11. General </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) <B>Additional Provisions
of an Award.</B> Awards under the Plan also may be subject to such other provisions (whether or not applicable to the benefit awarded to any other Participant) as the Committee determines appropriate including, without limitation, provisions to
assist the Participant in financing the purchase of Stock upon the exercise of Options, provisions for the forfeiture of or restrictions on resale or other disposition of shares of Stock acquired under any Award, provisions giving the Company the
right to repurchase shares of Stock acquired under any Award in the event the Participant elects to dispose of such shares, and provisions to comply with Federal and state securities laws and Federal and state tax withholding requirements. Any such
provisions shall be reflected in the applicable Award agreement. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) <B>Privileges of Stock Ownership.</B> Except as otherwise
specifically provided in the Plan, no person shall be entitled to the privileges of stock ownership in respect of shares of Stock which are subject to Awards hereunder until such shares have been issued to that person. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">14 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) <B>Government and Other Regulations.</B> The obligation of the Company to make payment
of Awards in Stock or otherwise shall be subject to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company
shall be under no obligation to offer to sell or to sell and shall be prohibited from offering to sell or selling any shares of Stock pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with
the Securities and Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available exemption therefrom and the
terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale under the Securities Act any of the shares of Stock to be offered or sold under the Plan. If the shares of Stock
offered for sale or sold under the Plan are offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates representing such shares in
such manner as it deems advisable to ensure the availability of any such exemption. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) <B>Tax Withholding.</B> Notwithstanding any other
provision of the Plan, the Company or a Subsidiary, as appropriate, shall have the right to deduct from all Awards cash and/or Stock, valued at Fair Market Value on the date of payment, in an amount necessary to satisfy all Federal, state or local
taxes as required by law to be withheld with respect to such Awards and, in the case of Awards paid in Stock, the Holder may be required to pay to the Company prior to delivery of such Stock, the amount of any such taxes which the Company is
required to withhold, if any, with respect to such Stock. The Company shall accept shares of Stock of equivalent Fair Market Value in payment of such withholding tax obligations if the Holder of the Award elects to make payment in such manner. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(e) <B>Claim To Awards and Employment or Service Rights.</B> No employee or other person shall have any claim or right to be granted an Award
under the Plan or, having been selected for the grant of an Award, to be selected for a grant of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any Participant any right to be retained in the employ or
service of the Company or any Subsidiary. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(f) <B>Designation and Change of Beneficiary.</B> Each Participant may file with the Committee a
written designation of one or more persons as the beneficiary who shall be entitled to receive the rights or amounts payable with respect to an Award due under the Plan upon his or her death. A Participant may, from time to time, revoke or change
his or her beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Committee. The last such designation received by the Committee shall be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless received by the Committee prior to the Participant&#146;s death, and in no event shall it be effective as of a date prior to such receipt. If no beneficiary designation is filed by the
Participant, the beneficiary shall be deemed to be his or her spouse or, if the Participant is unmarried at the time of death, his or her estate. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">15 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(g) <B>Payments To Persons Other Than Participants.</B> If the Committee shall find that any
person to whom any amount is payable under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his or her estate (unless a prior claim therefor has been
made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such person, or any other person deemed by the Committee to
be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of the Committee and the Company therefor. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(h) <B>No Liability of Committee Members.</B> No member of the Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on such member&#146;s behalf in such member&#146;s capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each member of the
Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or
liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with the Plan unless arising out of such person&#146;s own fraud or willful bad faith; provided, however, that approval of the Board
shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the
Company&#146;s Certificate of Incorporation or <FONT STYLE="white-space:nowrap">By-Laws,</FONT> as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(i) <B>Governing Law.</B> The Plan shall be governed by and construed in accordance with the internal laws of the State of Connecticut without
regard to the principles of conflicts of law thereof. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(j) <B>Funding.</B> No provision of the Plan shall require the Company, for the
purpose of satisfying any obligations under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank accounts,
books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Holders shall have no rights under the Plan other than as unsecured general creditors of the Company, except that
insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees under general law. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(k) <B>Nontransferability.</B> A person&#146;s rights and interest under the Plan, including amounts payable, may not be sold, assigned,
donated, or transferred or otherwise disposed of, mortgaged, pledged or encumbered except, in the event of a Holder&#146;s death, to a designated beneficiary to the extent permitted by the Plan, or in the absence of such designation, by will or the
laws of descent and distribution; provided, however, the Committee may, in its sole discretion, allow in an Award Agreement for transfer of Awards other than Incentive Stock Options to other persons or entities. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">16 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(l) <B>Reliance on Reports.</B> Each member of the Committee and each member of the Board
shall be fully justified in relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its Subsidiaries and upon
any other information furnished in connection with the Plan by any person or persons other than such member. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(m) <B>Relationship To Other
Benefits.</B> No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such
other plan. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(n) <B>Expenses.</B> The expenses of administering the Plan shall be borne by the Company. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(o) <B>Titles and Headings.</B> The titles and headings of the sections in the Plan are for convenience of reference only, and in the event of
any conflict, the text of the Plan, rather than such titles or headings shall control. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(p) <B><FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">Change-In-Control.</FONT></FONT></B> Notwithstanding anything in the Plan to the contrary, in the event of a <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Change-in-Control&#148;,</FONT></FONT> as
defined below, all Awards made pursuant to the Plan shall become fully vested immediately, and all Options shall be immediately exercisable (provided that if the
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Change-in-Control&#148;</FONT></FONT> occurs with respect to a Subsidiary, only Awards and Options granted to employees of such Subsidiary shall be affected), unless the
Committee provides otherwise in an Award Agreement. A <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">&#147;Change-in-Control&#148;</FONT></FONT> shall be deemed to have occurred if after the date an Award is granted (i)&nbsp;a
public announcement shall be made or a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to Section&nbsp;13(d) of the Exchange Act disclosing that any Person (as defined below), other than Company or a
Subsidiary or any employee benefit plan sponsored by Company or a Subsidiary, is the beneficial owner (as the term is defined in Rule <FONT STYLE="white-space:nowrap">13d-3</FONT> under the Exchange Act) directly or indirectly, of twenty percent
(20%) or more of the total voting power represented by Company&#146;s or a Subsidiary&#146;s then outstanding voting common stock (calculated as provided in paragraph (d)&nbsp;of Rule <FONT STYLE="white-space:nowrap">13d-3</FONT> under the Exchange
Act in the case of rights to acquire voting common stock); or (ii)&nbsp;any Person, other than Company or a Subsidiary or any employee benefit plan sponsored by Company or a Subsidiary, shall purchase shares pursuant to a tender offer or exchange
offer to acquire any voting common stock of Company or a Subsidiary (or securities convertible into such voting common stock) for cash, securities or any other consideration, provided that after consummation of the offer, the Person in question is
the beneficial owner directly or indirectly, of twenty percent (20%) or more of the total voting power represented by Company&#146;s or a Subsidiary&#146;s then outstanding voting common stock (all as calculated under clause (i)); or (iii)&nbsp;the
stockholders of Company or a Subsidiary shall approve (A)&nbsp;any consolidation or merger of Company or a Subsidiary in which Company or a Subsidiary is not the continuing or surviving corporation (other than a merger of Company or a Subsidiary in
which holders of the outstanding capital stock of Company or the Subsidiary immediately prior to the merger have the same proportionate ownership of the outstanding capital stock of the surviving corporation immediately after the merger as
immediately before), or pursuant to which the outstanding capital stock of Company or a Subsidiary would be converted into cash, securities or other </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">17 </P>

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property, or (B)&nbsp;any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of Company or a Subsidiary; or
(iv)&nbsp;there shall have been a change in the composition of the Board of Directors of Company or a Subsidiary at any time during any consecutive twenty-four (24)&nbsp;month period such that &#147;continuing directors&#148; cease for any reason to
constitute at least a majority of the Board unless the election, or the nomination for election of each new Director was approved by a vote of at least <FONT STYLE="white-space:nowrap">two-thirds</FONT> ( 2/3) of the Directors then still in office
who were Directors at the beginning of such period; or (v)&nbsp;the Board of Directors of Company or a Subsidiary, by a vote of a majority of all the Directors adopts a resolution to the effect that a <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">&#147;Change-in-Control&#148;</FONT></FONT> has occurred for purposes of this Agreement. &#147;Person&#148; shall mean any individual, corporation, partnership, company or other entity, and shall include a
&#147;group&#148; within the meaning of Section&nbsp;13(d)(3) of the Exchange Act. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>12. Changes in Capital Structure </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Awards granted under the Plan and any Award Agreements shall be subject to equitable adjustment, as determined by the Committee in its sole
discretion, as to the number, price or kind of a share of Stock or other consideration subject to such Awards (i)&nbsp;in the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason of stock dividends,
stock splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the Date of Grant of any such Award, (ii)&nbsp;in the event of any
change in applicable laws or any change in circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan, or (iii)&nbsp;upon the occurrence of any other
event which otherwise warrants equitable adjustment because it interferes with the intended operation of the Plan. In addition, in the event of any such corporate or other event, the aggregate number of shares of Stock available under the Plan and
the maximum number of shares of Stock with respect to which any one person may be granted in connection with Awards shall be appropriately adjusted by the Committee, whose determination shall be conclusive. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Notwithstanding the above, in the event of any of the following: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(a) The Company is merged or consolidated with another corporation or entity and, in connection therewith, consideration is received by
stockholders of the Company in a form other than stock or other equity interests of the surviving entity; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(b) All or substantially all of
the assets of the Company are acquired by another person; </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(c) The reorganization or liquidation of the Company; or </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">(d) The Company shall enter into a written agreement to undergo an event described in clauses (a), (b) or (c)&nbsp;above, then the Committee
may, in its sole discretion and upon at least 10 days advance notice to the affected persons, cancel any outstanding Awards and pay to the Holders thereof, in cash, the value of such Awards based upon the price per share of Stock received or to be
received by other stockholders of the Company in the event. The terms of this Section&nbsp;12&nbsp;may be varied by the Committee in any particular Award agreement. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">18 </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>13. Nonexclusivity of the Plan </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed
as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be
either applicable generally or only in specific cases. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>14. Amendment and Termination </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">The Board may at any time terminate the Plan. Subject to Section&nbsp;5(e), with the express written consent of an individual Participant, the
Committee may cancel or reduce or otherwise alter outstanding Awards. The Committee may, at any time, or from time to time, amend or suspend and, if suspended, reinstate, the Plan in whole or in part; provided that (i)&nbsp;any such amendment shall
be contingent on obtaining the approval of the stockholders of the Company if the Committee determines that such approval is necessary to comply with any requirement of law, including the requirements for qualification of Incentive Stock Options or
rule of any stock exchange or automated quotation system on which the Company&#146;s equity securities are traded or quoted; and (ii)&nbsp;no alteration or amendment of the Plan that would repeal the prohibition against repricing set forth in
Section&nbsp;5(e) hereof shall be made without the approval of the Company&#146;s stockholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;*&nbsp;&nbsp;* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">As adopted by the Board of Directors of Connecticut Water Service, Inc. on March&nbsp;4, 2002. </P>
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