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|   | Section      1.1. | Definitions  |   |
|--------|-------------------|-------------------|--------|

|   | Section      1.2. | Interpretation  |   |
|--------|-------------------|----------------------|--------|

|   | Section      2.1. | Representations      by the Authority  |   |
|--------|-------------------|---------------------------------------------|--------|

|   | Section      2.2. | Representations      by the Borrower  |   |
|--------|-------------------|--------------------------------------------|--------|

|   | Section      3.1. | Loan      Clauses  |  |
|--------|-------------------|-------------------------|--|

|   | Section      3.2. | Other      Amounts Payable  |   |
|--------|-------------------|----------------------------------|--------|

|   | Section      3.3. | Manner      of Payment  |  |
|--------|-------------------|------------------------------|--|

|   | Section      3.4. | Obligation      Unconditional  |   |
|--------|-------------------|-------------------------------------|--------|

|   | Section      3.5. | Securities      Clauses  |   |
|--------|-------------------|-------------------------------|--------|

|   | Section      3.6. | Issuance      of Bonds  |   |
|--------|-------------------|------------------------------|--------|

|   | Section      3.7. | Effective      Date and Term  |   |
|--------|-------------------|------------------------------------|--------|

|   | Section      3.8. | No      Additional Bonds  |   |
|--------|-------------------|--------------------------------|--------|

|   | Section      4.1. | Completion      of the Project  |   |
|--------|-------------------|--------------------------------------|--------|

|   | Section      4.2. | Payment      of Additional Project Costs by Borrower  |   |
|--------|-------------------|------------------------------------------------------------|--------|

|   | Section      4.3. | Completion      Certificate  |   |
|--------|-------------------|-----------------------------------|--------|

|   | Section      4.4. | No      Warranty Regarding Condition, Suitability or Cost of      Project  |   |
|--------|-------------------|---------------------------------------------------------------------------------|--------|

|   | Section      4.5. | Taxes  |   |
|--------|-------------------|-------------|--------|

|   | Section      4.6. | Insurance  |   |
|--------|-------------------|-----------------|--------|

|   | Section      4.7. | Compliance      with Law  |   |
|--------|-------------------|--------------------------------|--------|

|   | Section      4.8. | Maintenance      and Repair  |   |
|--------|-------------------|-----------------------------------|--------|

|   | Section      4.9. | Reserved  |   |
|--------|-------------------|----------------|--------|

|   | Section      4.10. | Leasing      of the Project  |   |
|--------|--------------------|-----------------------------------|--------|

|   | Section      4.11. | Disposition      of the Project  |   |
|--------|--------------------|---------------------------------------|--------|

|   | Section      4.12. | Borrower      Contribution  |   |
|--------|--------------------|----------------------------------|--------|

|   | Section      5.1. | No      Abatement of Payments Hereunder  |   |
|--------|-------------------|-----------------------------------------------|--------|

|   | Section      5.2. | Project      Disposition Upon Condemnation, Damage or Destruction  |   |
|--------|-------------------|-------------------------------------------------------------------------|--------|

|   | Section      5.3. | Application      of Net Proceeds of Insurance or Condemnation  |   |
|--------|-------------------|---------------------------------------------------------------------|--------|

|   | Section      6.1. | The      Borrower to Maintain its Corporate Existence; Conditions under which      Exceptions Permitted  |   |
|--------|-------------------|---------------------------------------------------------------------------------------------------------------|--------|

|   | Section      6.2. | Indemnification,      Payment of Expenses, and Advances  |   |
|--------|-------------------|---------------------------------------------------------------|--------|

|   | Section      6.3. | Incorporation      of Tax Regulatory Agreement; Payments Upon  Taxability |
|--------|-------------------|---------------------------------------------------------------------------|

|   | Section      6.4. | Public      Purpose Covenants  |   |
|--------|-------------------|-------------------------------------|--------|

|   | Section      6.5. | Further      Assurances and Corrective Instruments  |   |
|--------|-------------------|----------------------------------------------------------|--------|

|   | Section      6.6. | Covenant      by Borrower as to Compliance with Indenture  |   |
|--------|-------------------|-----------------------------------------------------------------|--------|

|   | Section      6.7. | Assignment      of Agreement or Note  |   |
|--------|-------------------|--------------------------------------------|--------|

|   | Section      6.8. | Inspection  |   |
|--------|-------------------|------------------|--------|

|   | Section      6.9. | Default      Notification  |   |
|--------|-------------------|---------------------------------|--------|

|   | Section      6.10. | Covenant      Against Discrimination  |   |
|--------|--------------------|--------------------------------------------|--------|

|   | Section      6.11. | Covenant      to Provide Disclosure  |   |
|--------|--------------------|-------------------------------------------|--------|

|   | Section      6.12. | Negative      Pledge  |   |
|--------|--------------------|----------------------------|--------|

|   | Section      7.1. | Events      of Default  |   |
|--------|-------------------|------------------------------|--------|

|   | Section      7.2. | Remedies      on Default  |   |
|--------|-------------------|--------------------------------|--------|

|   | Section      7.3. | Remedies      on Public Purpose Default  |   |
|--------|-------------------|-----------------------------------------------|--------|

|   | Section      7.4. | No      Duty to Mitigate Damages  |   |
|--------|-------------------|----------------------------------------|--------|

|   | Section      7.5. | Remedies      Cumulative  |   |
|--------|-------------------|--------------------------------|--------|

|   | Section      8.1. | Optional      Prepayment  |   |
|--------|-------------------|--------------------------------|--------|

|   | Section      8.2. | Notices      of Prepayment  |   |
|--------|-------------------|----------------------------------|--------|

|   | Section      8.3. | Mandatory      Prepayment on Taxability and Receipt of Request for Redemption of a      Deceased Holder’s Bonds  |   |
|--------|-------------------|-----------------------------------------------------------------------------------------------------------------------------|--------|

|   | Section      9.1. | Indenture  |   |
|--------|-------------------|-----------------|--------|

|   | Section      9.2. | Benefit      of and Enforcement by Bondholders  |   |
|--------|-------------------|------------------------------------------------------|--------|

|   | Section      9.3. | Force      Majeure  |   |
|--------|-------------------|--------------------------|--------|

|   | Section      9.4. | Amendments  |   |
|--------|-------------------|------------------|--------|

|   | Section      9.5. | Notices  |   |
|--------|-------------------|---------------|--------|

|   | Section      9.6. | Compliance      with C  |   |
|--------|-------------------|------------------------------|--------|

|   | Section      9.7. | Prior      Agreements Superseded  |   |
|--------|-------------------|----------------------------------------|--------|

|   | Section      9.8. | Execution      of Counterparts  |   |
|--------|-------------------|--------------------------------------|--------|

|   | Section      9.9. | Time  |   |
|--------|-------------------|------------|--------|

|   | Section      9.10. | Separability      of Invalid Provisions  |   |
|--------|--------------------|-----------------------------------------------|--------|

|   | Section      9.11. | Third      Party Beneficiaries  |   |
|--------|--------------------|--------------------------------------|--------|

|   | Section      9.12. | Governing      Law  |   |
|--------|--------------------|--------------------------|--------|

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|   | THE      CONNECTICUT WATER COMPANY |
|--------|------------------------------------|

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| Description                                                                                                                                                                                                                                                                                                                                     | Location                                                                                                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Shoreline      Region                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                 |
| Improvements to Elementary      School, Chester - Replace approximately 3300 feet of 6” cast iron      main on Rte. 148 and Ridge Road with 12” DIP to improve flow to Chester      Elementary School. Project scope includes the replacement of services and      hydrant(s), as appropriate.                                      | Main      Street from Water Street to Ridge Road and Ridge Road from Main to      Elementary School driveway, Chester, CT.                                                                                                                           |
| Comstock Ave, Essex -      Replacement of 2900’ of 6” cast iron with 8” DIP. Project scope includes      the replacement of services and hydrant(s).                                                                                                                                                                          | Comstock      Avenue, Essex, CT                                                                                                                                                                                                                      |
| Dudley Ave, Madison -      Replacement of 4500’ of 2” galvanized and 6” transite with 8” DIP. Project      scope includes the replacement of services and hydrant(s).                                                                                                                                                   | Dudley      Ave., North Lane, South Lane, East Lane, 1st Street, 2nd Street, Madison,      CT.                                                                                                                                                       |
| Glenwood Rd to Rte 81 to North      High St, Clinton - This project involves the cleaning and lining of      approximately 10,000 feet of 14-inch cast iron main.                                                                                                                                                                               | Glenwood      Road, Clinton, from Rte 81 to North High Street, Clinton,    CT                                                                                                                                                                        |
| Westbrook Tank (Lee      Company)  Construction of one million gallon water storage tank      to improve system supply storage capacity.                                                                                                                                                                                              | In      Easement located 4,000 feet off of the end of the      existing  road,  Pequot Park Road Extension, on Lee      Company property.  Pequot Park Road Extension is located off of      Route 145, Westbrook, CT. |
| Westbrook Tank (Lee Company)      Connecting Main  - to connect new storage facility to      distribution main.                                                                                                                                                                                                                       | In      Easement located 4,000 feet off of the end of the      existing  road,  Pequot Park Road Extension, on Lee      Company property.  Pequot Park Road Extension is located off of      Route 145, Westbrook, CT. |
| Clinton Well Greensand      Filter – add third greensand filter vessel to treatment      facility.                                                                                                                                                                                                                                        | Clinton      Well Field, 93 Glenwood Road, Clinton, CT.                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                 |
| Naugatuck      Region                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                 |
| Roosevelt/Beach,      Terryville  - Replacement of 1700’ -4” cast iron with 8”      DIP main.  Project scope includes the replacement of services      and hydrant(s), as appropriate.                                                                                                               | Roosevelt      and Beach Roads, Terryville, CT                                                                                                                                                                                                       |
| Webster Street,      Unionville - Replacement of 2000’ of 6-inch cast iron with 8” DIP      main in conjunction with town roadway project.  Project scope      includes the replacement of services and hydrant(s), as      appropriate.                                                                                  | Webster      Street, from River Road to Plainville Avenue (Route 177), Unionville,      CT                                                                                                                                                           |
| High Street, Naugatuck -      Replace 3000’ -8” cast iron main with 12” DIP to eliminate hydraulic      bottle neck. Project scope includes the replacement of services and      hydrant(s), as appropriate.                                                                                                                  | North      Main Street to Calvin Street. – Calvin to High Street. – High to May      Street. – May to Johnson Street, Naugatuck, CT.                                                                                               |
| Mountain Spring Road,      Farmington - Replacement of 3000’-6” cast iron main due to      conflicts and relocation of state roadway project. Project scope includes      the replacement of services and hydrant(s), as appropriate.                                                                                          | From      Route 4 (Farmington Avenue), Farmington, CT North to end of existing main,      3000’ .                                                                                                                                              |
| Spring St, Naugatuck -      Replacement of 2300’ of 6” cast iron with 8” DIP. Project scope includes      the replacement of services and hydrant(s).                                                                                                                                                                         | Spring      Street from Bridge Street to Porter Avenue, Naugatuck,  CT.                                                                                                                                                                              |
| Scott Swamp Rd./Cook St./Rte      10, Farmington - Replacement of 3800’ of 6” cast iron of 12” DIP.      Project scope includes the replacement of services and      hydrant(s).                                                                                                                                         | Route      10 (Main Street) from Scott Swamp Road to Hawthorne Lane, and Cooke Street      from Hawthorne to existing main, Farmington, CT.                                                                                                          |
| Mohawk/Keene/Pickett,      Unionville - Replacement of 5000’ of 6” cast iron with 8” DIP.      Project scope includes the replacement of services and      hydrant(s).                                                                                                                                                   | Keene      Place from Plainville Ave (Rte 177) to Brittany Lane, Mohawk Drive from      Keene Place to West District Rd, Pickett Lane to cul-de-sac, Batt Court      Loop, Unionville, CT.                                                           |
| Farmington Ave-Garden to High      St, Unionville - Replacement of 1500’ of 6” cast iron with 12” DIP.      Project scope includes the replacement of services and      hydrant(s).                                                                                                                                      | Farmington      Avenue  (Rte. 4) from Garden Street to High Street, Farmington,      CT.                                                                                                                                                   |
| Prospect Street, Vernon      - Replace 2800’ of 10” cast iron with 12” DIP main in conjunction with      town roadway project. Project scope includes the replacement of services      and hydrant(s), as appropriate.                                                                                                        | Prospect      Street from Gaynor Place to Union Street, Vernon, CT.                                                                                                                                                                                  |
| Ellsworth Estates, East Windsor      -  Replace 6800’ of plastic distribution system and      services, remove existing pressure reducing valve required due to      condition of existing pipe and causing flow restriction.                                                                                                   | Includes      all or part of Rye Street, Petticoat Lane, Omelia Road, Ellsworth Road,      Allen Street, East Windsor, CT.                                                                                                                           |
| High St., Enfield -      Involves the replacement of 2200' of existing cast iron water main.      Project scope includes the replacement of services and hydrant(s), as      appropriate.                                                                                                                                                       |  High      Street, entire length from Route 5 to Prospect Street, Enfield,      CT.                                                                                                                                                             |
| Chestnut Street, Windsor      Locks - Involves replacement of existing 10" transite water mains      on Chestnut Street in conjunction with Town restoration project. Project      scope includes the replacement of services and hydrant(s), as      appropriate.                                                                         | Chestnut      Street, entire length from Spring Street to Route 159 (Main Street),      Windsor Locks, CT.                                                                                                                                           |
| Prospect Hill Phase I&II,      East Windsor - Replacement of 7500’ of 6” transite main with 8-inch      DIP in conjunction with town reconstruction work.  Project scope      includes the replacement of services and hydrant(s). Original main      installed 1950s.                                           | Streets      include Prospect Hill, Cricket, Broadview and Button, East Windsor,      CT                                                                                                                                                             |
| Road Restoration, South      Windsor - Involves replacement of existing cast iron and transite      water mains in conjunction with Town restoration project(s). Project scope      includes the replacement of services and hydrant(s), as      appropriate.                                                                              | Brewster,      Gray and Arnold Streets, South Windsor, CT                                                                                                                                                                                            |
| Rte. 31 / 275, Coventry      - Replacement of 4500’ of existing 6 & 4 inch cast iron distribution      pipe in conjunction with DOT road reconstruction of Rte. 275 and Rte.      31.                                                                                                                                            | Rte.      31 from Rte. 275 (Stonehouse Road) to Armstrong Road, Coventry,      CT.                                                                                                                                                                   |
| Mountain Road, Suffield      - Replacement of 7500’ of 10 and 4” cast iron main with 12” DIP. Project      scope includes the replacement of services and hydrant(s).                                                                                                                                                         | Mountain      Road (Rte. 168) from Rte. 75 to Plantation Drive, Suffield,      CT.                                                                                                                                                                   |
| Gardener and Pleasant St, East      Windsor - Replacement of 2400’ of 6&4” cast iron main with 8”      DIP. Project scope includes the replacement of services and      hydrant(s)..                                                                                                                                 | Gardener      Street and Pleasant Street from Gardener to North Main Street., East      Windsor, CT.                                                                                                                                                 |
| Whiton, West & Wicklow,      Windsor Locks - Replacement of 4500 of 4” cast iron with 8” DIP in      conjunction with town roadway project. Project scope includes the      replacement of services and hydrant(s), as appropriate.                                                                                             | Whiton      and Wicklow Streets, West Street from North to Spring Street, Windsor      Locks, CT.                                                                                                                                                    |
| Talcottville/Old Main,      Vernon - Replacement of 11,000 feet of 6&4” transite main with      8” DIP. Project scope includes the replacement of services and      hydrant(s).                                                                                                                                                 | Streets      include Hartl [Sp?],  Taylor,      Lorraine, Welles, Acorn and Allison, Vernon, CT.                                                                                                                                           |
| Road Restoration,      Enfield - Involves replacement of existing cast iron and/or      transite water mains, in conjunction with Town restoration project(s).      Project scope includes the replacement of services and hydrant(s), as      appropriate.                                                                                     | Alden,      Lafayette, and Jim Streets, Enfield, CT.                                                                                                                                                                                                 |
| Road Restoration, South Windsor      – Involves replacement of existing cast iron and/or transite water      mains the Avery Heights area in conjunction with Town restoration      project(s). Project scope includes the replacement of services and      hydrant(s), as appropriate.                                                   | Spruce      Lane and Benedict Drive, South Windsor, CT.                                                                                                                                                                                              |
| Rockville Water Treatment Plant      Sludge Lagoon, Pump Station, and Sedimentation Basins      -  Construction of booster pump station, clarifier sludge      lagoons, and installation of piping from booster to    lagoons.                                                                                                        | Plant      is located on Snipsic Street, Rockville, sludge lagoons will be located on      Company property along Collins Stage Road, Rockville,  CT.                                                                                                |
| Lakewood Well Treatment      Addition –  Expansion of treatment building to serve area      at an increased capacity.                                                                                                                                                                                                           | Edgewater      Drive, Coventry, CT.                                                                                                                                                                                                                  |
| Interconnection with Manchester      Water – Interconnect with adjoining system to serve new development      in South Windsor, expansion of Evergreen Walk.                                                                                                                                                                              | Buckland      Drive near Lowe’s, Manchester, CT.                                                                                                                                                                                               |
| Ellington Acres Interconnection      – Field/Egypt Road, Somers.  Install approximately 8100      lf 12" DIP water main to interconnect Northern Western system from Somers      to Ellington Acres system                                                                                                                      | Field      Road from New England Tractor Trailer Training School      to  Billings Road, Egypt Road from Billings to existing main at      Town Garage,  Somers, CT                                                              |
| Eastern      Region                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                 |
| Wauregan Village Imp. - Phase      III -  Completion of system upgrade requires installation      of 1800’ – 8” DIP to replace the balance of the 6’ & <=2” pipe      located on private property. Project scope includes the replacement of      services and hydrant(s), as appropriate.  | North      Chestnut Street., North Walnut Street., Grove Street., North Cross Street.      and Fountain Street, Wauregan, CT.                                                                                                                        |
| Ballouville Rd., Ballouville -      Involves replacement of 6000' of existing 6" cast iron main.      Project scope includes replacement of services and fire hydrant(s), as      appropriate.                                                                                                                                             | Ballouville      Road from Attawagan Crossing Road to Chestnut Hill Road, Killingly,      CT.                                                                                                                                                        |
| Onion Hill neighborhood,      Plainfield -   Replace 2650’ – 4” cast iron with 8”      DIP main.  Project scope includes the replacement of services      and hydrant(s), as appropriate.                                                                                                 | Laurel      Street, North . Pleasant Street, Ashley, Dougherty and Rte. 14A,      Plainfield, CT.                                                                                                                                                    |
| Maple St Area,      Brooklyn/Danielson - Replacement of 2000’of cast iron and      galvanized main, <=4”.. Project scope includes the replacement of      services and hydrant(s).                                                                                                                                          | Williams,      Cave, Adelaide, Fredrick, Griffin, Leander, Middle Streets, Danielson,      CT.                                                                                                                                                       |
| Westchester Village Well      Station – Develop new well to supply residential complex,      construction of pump station building and treatment.                                                                                                                                                                                         | Shailor      Hill Road, Colchester, CT.                                                                                                                                                                                                              |

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