| BETWEEN:  | CONSOLIDATED      WATER CO. LTD., |
|----------------|-----------------------------------|

| AND: | GREGORY      S. McTAGGART |
|------|---------------------------|

| 1. | The      Vice-President is engaged as Vice-President of Cayman Operations      commencing on the 1st      day of January, 2008 subject to the termination provisions set out in      Clauses 18 and 19. |
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| 2. | The      Vice-President’s Base Salary will be US$132,750 per annum payable      semi-monthly in arrears. |
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| 3. | In      addition, during the term of this Agreement, the Company will pay the full      cost of providing medical insurance, as      generally provided for the Company’s employees from time to time, for the      Vice-President and his wife anddependants. |
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| 4. | Subject      to approval of the members of the Company at the Company’s next Annual      General Meeting and of the Committee to be set up to administer the      Company’s Equity Incentive Plan (“the Plan”), the Vice President will      participate in the Plan and will be granted as at November 30, 2007 (“the      Grant Date”) an option to purchase 17,700 ordinary shares of the Company      (subject to adjustment in accordance with the Plan) at the closing price      of the Company’s ordinary shares on the primary listing exchange on the      Grant Date.  The option will vest in tranches of 5,900 shares      each on January 1, 2009, January 1, 2010, and January 1, 2011 (“the      Vesting Dates”), and each may be exercised by the Vice President in      accordance with the Plan and subject to Clause 19(d), no more than three      years from the relevant Vesting Date, after which the option in respect of      that tranche will expire.  If the Company’s shareholders do not      approve the Plan or the Committee does not approve the grant to the      Vice-President, then the Company must within thirty days of the Annual      General Meeting pay the Vice President a lump sum equal to 25% of his Base      Salary. |
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| 5. | In      addition, during the term of this Agreement, the Company will make      contributions to a pension scheme of the Vice-President’s choice but which      must be approved under the National Pensions Law, in the same manner and      on the same basis as it makes contributions from time to time, in respect      of its other employees pursuant to the National Pensions Law on a maximum      salary base of CI$60,000.00 per annum or such other base as is required by      that Law from time to time. |
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| 6. | The      Vice-President’s Base Salary will be reviewed as of January 1st      each year by the Company’s Chief Executive Officer (“the CEO”) who may      grant an increase but must not reduce the Vice-President’s salary below      the level set out in Clause 2 or in the immediately preceding year,      whichever is applicable. |
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| 7. | If      by not later than January 31st      in each calendar year commencing with the year 2008, the Vice-President      and the CEO have agreed to Performance Goals for the Vice-President for      that calendar year, and if those Performance Goals are met for that year,      then the Company must pay to the Vice-President a Performance Bonus for      that year in an amount not less than 25% of the Vice-President’s Base      Salary for that calendar year, as adjusted by Clause 6.  The      Board of Directors, in its sole and absolute discretion, and taking into      consideration the recommendations of the CEO, if any, may determine to pay      a larger Performance Bonus.  In any calendar year that all of      the Performance Goals are not met, the Board of Directors, in its sole and      absolute discretion, and taking into consideration the recommendations of      the CEO, if any, may, but is not obligated to, pay the Vice-President a      Performance Bonus in an amount determined by the Board of Directors. The      Performance Bonus must be paid entirely incash. |
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| 8. | The      Company will provide the Vice-President with a motor vehicle which, in the      sole opinion of the Company, is suitable for the discharge of the      Vice-President’s duties hereunder. |
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| 9. | The      Vice-President’s work will be performed mainly in West Bay, Grand      Cayman. |
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| 10. | The      Vice-President must devote the whole of his time to the Company's business      and must use his best endeavours to promote the Company's interest and      welfare. |
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|   | (a) | Directing      and managing the day-to-day activities of the Subsidiaries’ water      production and supply operations, including plant operation and      maintenance, collection of billing data, plant expenditures and the      safeguarding of plant assets; |
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|   | (b) | Preparing      the Subsidiaries’ operating and capital expenditure    budgets; |
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|   | (c) | Preparing      and implementing a fixed asset maintenance and retirement      schedule; |
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|   | (d) | Liaising      with the Government regulator on all matters related to the Subsidiaries’      water production and supplylicences; |
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|   | (e) | Providing      technical support to the Subsidiaries’ Customer Service department when      required; |
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|   | (f) | Overseeing      the supervision of subordinate personnel, including work allocation,      training, and problem resolution, evaluating performance and making      recommendations for Subsidiaries personnel actions and motivating its      employees to achieve peak productivity and  performance; |
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|   | (g) | Preparing      and presenting the monthly operations reports of each of the Subsidiaries      to management and the Board; |
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|   | (h) | Carrying      out any special projects which may be assigned to the Vice President from      time to time. |
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| 11. | In      case of inability to work due to illness or injury, the Vice-President      must notify the Company immediately and produce a medical certificate for      any absence longer than three workingdays. |
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| 12. | The      Vice-President is entitled to up to ten (10) days sick leave per year (but      not more than three consecutive days at any time) without a medical      certificate. |
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| 13. | The      Vice-President is entitled, during every calendar year to the following      holidays during which his remuneration will continue to be      payable:- |
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|   | (a) | all      public holidays in the Cayman Islands,and |
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|   | (b) | four      (4) weeks vacation to be taken at a time to be approved by the      CEO. |
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| 14. | (a) | All      expenses for which the Vice-President claims reimbursement must be in      accordance with any policies established by the Board from time to time      and must be within the operating budgets approved by the      Board.  The Company must reimburse the Vice-President for the      costs incurred by the Vice-President in his performance of his duties on      production of the necessary vouchers or, if he is unable to produce      vouchers, on the Vice-President’s proving, to the CEO’s satisfaction, the      amount he has spent for thosepurposes. |
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|   | (b) | Any      fees and payments received by the Vice-President for or in relation to      acting as director or officer of a subsidiary or affiliate of the Company      will be the property of the Company and the Vice-President must account to      the Company for it. |
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| 15. | The      Vice-President agrees, as a separate and independent agreement, that he      will not during any period for which he is entitled to remuneration under      this Agreement, whether for his own account or for the account of any      other person, firm or body corporate, either alone or jointly with or as      director, manager, agent or employee of or as consultant to any person,      firm or body corporate, directly or indirectly, carry on or be engaged or      concerned or interested in any person firm or body corporate which      conducts business identical to or similar to that conducted by the Company      in any jurisdiction in which the Company carries on business (whether      directly or indirectly). |
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| 16. | (a) | All      information, documents, books, records, notes, files, memoranda, reports,      customer lists and other documents, and all copies of them, relating to      the Company’s business or opportunities which the Vice-President keeps,      prepares or conceives or which become known to him or which are delivered      or disclosed to him or which, by any means come into his possession, and      all the Company’s property and equipment are and will remain the Company’s      sole and exclusive property both during the term of this Agreement and      after its termination or expiration; |
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|   | (b) | If      this Agreement is terminated for any reason, or if the Company at any time      requests, the Vice-President must promptly deliver to the Company the      originals and all copies of all relevant documents that are in his      possession, custody or control together with any other property belonging      to the Company.  Should the Vice-President afterwards require      access to copies of those documents for any reasonable purpose, the      Company must provide them on hisrequest; |
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|   | (c) | The      Vice-President must not, at any time during the term of this Agreement or      within one year after its termination or expiration, either for his own      account or for the account of any other person, firm or company, solicit,      interfere with or endeavour to entice away from the Company any person,      firm or company who or which, at any time during the currency of this      Agreement was an employee, customer or supplier of or was in the habit of      dealing with the Company. |
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| 17. | Except      where such information is a matter of public record or when required to do      so by law, the Vice-President must not, either before or after this      Agreement ends, disclose to any person any information relating to the      Company or its customers of which he becomes possessed while acting as      Vice-President. |
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| 18. | This      Agreement will terminate and, except to the extent previously accrued, all      rights and obligations of both parties under it will cease if either of      the following events occurs:- |
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|   | (a) | The      Vice-President dies. |
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|   | (b) | The      Vice-President gives three (3) months written notice of termination to the      Company. |
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| 19. | (a) | The      Company may, by written notice, terminate this Agreement with immediate      effect if the Vice-President conducts himself in a manner that would      justify immediate dismissal of an employee in accordance with Section      51(1)(a)1 of      the Labour Law and, except to the extent previously accrued, all rights      and obligations of both parties under this Agreement will      cease. |
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|   | (b) | If      through physical or mental illness, the Vice-President is unable to      discharge his duties for sixty (60) successive days, as to which a      certificate by any doctor appointed by the Company will be conclusive,      then |
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|   | (i) | the      Vice-President will be relieved of his duties, his salary reduced to      US$1,000.00 per annum and his bonus entitlement suspended,    but |
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|  | (ii) | the      Company will continue to pay the full cost of providing medical insurance      for the Vice-President and his wife and dependants together with pension      contributions (such contributions to be equal to the pension contribution      made on behalf of the Vice-President for the previous financial year of      the Company), |
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|   | (c) | The      Company may terminate this Agreement at any time upon serving three      month’s notice to the Vice-President and paying the Vice-President      severance pay in accordance with the Labour Law or in an amount equal to      six-twelfths of the Base Salary, as adjusted by Clause 6, whichever amount      is greater. |
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|   | (b) | If:- |
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|   | (i) | the      Vice-President terminates this Agreement under Clause 18(b);      or |
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|   | (ii) | the      Company terminates this Agreement under paragraph (a) of this Clause or in      accordance with Sections 51(1)(b)1,      51(1)(c)1 or      51(1)(f)1 of      the Labour Law; |
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| 20. | Any      notice to be served under this Agreement must be in writing and will be      deemed to be duly served if it is handed personally to the Secretary of      the Company or to the Vice-President as the case may be, or if it is sent      by registered post to the addressee at the relevant address at the head of      this Agreement.  A notice sent by post will be deemed to be      served on the third day following the date on which it was      posted. |
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| 21. | (a) | This      Agreement supersedes as of January 1st      2008 all prior contracts and understandings between the parties relating      to its subject-matter except that benefits earned or accrued under any      such prior contracts are not extinguished or  affected. |
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|   | (b) | In      particular, the Participation Agreement dated ___________ between the      Company and the Vice-President relating to the Vice-President’s      participation in the Company’s Share Incentive Plan is terminated by      mutual consent as of December 31st      2007, except that benefits earned or accrued under that Agreement are not      extinguished or affected. |
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| 22. | No      change or attempted waiver of any of the provisions of this Agreement will      be binding unless in writing and signed by the party against whom it is      sought to be enforced. |
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| 23. | Whenever      possible, each provision of this Agreement must be interpreted in such      manner as to be effective and valid.  If any provision of this      Agreement or the application of it is prohibited or is held to be invalid,      that prohibition or invalidity will not affect any other provision, or the      application of any other provision which can be given effect without the      invalid provision or prohibited application and, to this end, the      provisions of this Agreement are declared to be  severable. |
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| 24. | The      headings in this Agreement are included for convenience only and have no      legal effect. |
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| 25. | This      Agreement must be construed and the legal relations between the parties      determined in accordance with the laws of the Cayman Islands to the      jurisdiction of the courts of which the parties agree to      submit. |
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| EXECUTED for and on      behalf of |   | CONSOLIDATED      WATER CO. LTD. |   |
|------------------------------------|--------|----------------------------------|--------|
| CONSOLIDATED      WATER CO LTD.    |   |                             |   |
| by:                                |   |                             |   |
| In      the presence of:           |   |                             |   |
|                               |   |                             |   |
|                               |   |                             |   |
| Witness                            |   | Director                         |   |
|                               |   |                             |   |
| EXECUTED by GREGORY    S.          |   |                             |   |
| McTAGGART in the      presence of: |   |                             |   |
|                               |   |                             |   |
|                               |   |                             |   |
| Witness                            |   | GREGORY      S. McTAGGART        |   |

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