----

----

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| CLAUSE | Page                                             |
|--------|--------------------------------------------------|
|   |                                             |   |
| 1.     | INTERPRETATION                                   |        1 |
|   |                                             |   |
| 2.     | PAYMENT      OF SECURED OBLIGATIONS              |        4 |
|   |                                             |   |
| 3.     | CHARGING      CLAUSE                             |        5 |
|   |                                             |   |
| 4.     | CONTINUING      SECURITY                         |        6 |
|   |                                             |   |
| 5.     | FURTHER      ASSURANCE                           |        7 |
|   |                                             |   |
| 6.     | REPRESENTATIONS                                  |        8 |
|   |                                             |   |
| 7.     | UNDERTAKINGS                                     |        9 |
|   |                                             |   |
| 8.     | POWER      OF ATTORNEY                           |        10 |
|   |                                             |   |
| 9.     | ENFORCEMENT      AND POWERS OF THE CHARGEE       |        11 |
|   |                                             |   |
| 10.    | APPLICATION      OF MONEYS                       |        13 |
|   |                                             |   |
| 11.    | PROTECTION      OF THIRD PARTIES                 |        14 |
|   |                                             |   |
| 12.    | PROTECTION      OF CHARGEE AND RECEIVER          |        14 |
|   |                                             |   |
| 13.    | COSTS      AND EXPENSES                          |        15 |
|   |                                             |   |
| 14.    | CUMULATIVE      POWERS AND AVOIDANCE OF PAYMENTS |        15 |
|   |                                             |   |
| 15.    | RULING      OFF ACCOUNTS                         |        16 |
|   |                                             |   |
| 16.    | DELEGATION                                       |        16 |
|   |                                             |   |
| 17.    | REDEMPTION      OF PRIOR CHARGES                 |        16 |
|   |                                             |   |
| 18.    | NOTICES                                          |        16 |
|   |                                             |   |
| 19.    | CHANGES      TO PARTIES                          |        16 |
|   |                                             |   |
| 20.    | MISCELLANEOUS                                    |        16 |
|   |                                             |   |
| 21.    | PAYMENTS      FREE OF DEDUCTION                  |        17 |
|   |                                             |   |
| 22.    | RELEASE      OF SECURITY                         |        17 |
|   |                                             |   |
| 23.    | GOVERNING      LAW                               |        17 |
|   |                                             |   |
| 24.    | JURISDICTION                                     |        17 |

----

| SCHEDULE      1  DETAILS OF ACCOUNTS                                                                  |        18 |
|-----------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                            |           |
| SCHEDULE      2  FORM OF NOTICE TO BANKS  OPERATING ACCOUNTS AND/OR      NOMINATED ACCOUNTS |        19 |

----

| (1) | Ocean Conversion (BVI) Ltd.      of Baughers Bay, Tortola, British Virgin Islands a company      incorporated under the laws of the British Virgin Islands with registered      number 682861 (the “Chargor”);      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consolidated Water Co.      Ltd., of Grand Cayman, Cayman Islands, a company incorporated under      the laws of the Cayman Islands (the “Chargee”) |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A) | By      a loan agreement dated on our about 25 May 2005 and attached hereto as      Schedule 3 (the “Loan      Agreement”) made between the Chargor and Chargee, the Chargee      agreed to provide certain loan facilities to the Chargor on the terms and      conditions therein set out. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B) | By      the terms of the Loan Agreement, the funds loaned were to be repaid the      1st      day of June 2007. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (C) | The      Chargor is currently not in a position to make such repayment, and the      Chargee has agreed to extend the time for repayment until the1st day of      July 2009 (the “Loan      Extension”) if it receives the security of this Debenture which the      Chargor has agreed to give. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | INTERPRETATION |
|----|----------------|

| 1.1 | Defined      terms used in this Debenture have the same meaning attributed to them in      the Loan Agreement and, unless the context otherwise requires, the      following words and expressions shall have the following      meanings: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

3.2

----

| 1.2 | References      in this Debenture to any document, agreement or instrument will be deemed      to include references to that document, agreement or instrument as it may      be amended, modified, varied, novated or restated from time to time      (including, without limitation, by way of increase of the facilities made      available thereunder).  Similarly, references in this Debenture      to the Secured Obligations will be deemed to include any and all      obligations which the Chargor or may have under or in connection with the      Loan Agreement and Loan Extension as the same may be so varied, amended,      modified, novated or restated from time totime. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | In      this Debenture, unless a contrary intention appears, a reference      to: |
|-----|-----------------------------------------------------------------------------------|

|   | (a) | an      “agreement”      includes any legally binding arrangement, concession, contract, deed or      franchise (in each case whether oral or  written); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | an      “amendment”      includes any amendment, supplement, variation, novation, modification,      replacement or restatement and “amend”, “amending” and “amended” shall be      construed accordingly; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | “assets” includes      property, business, undertaking and rights of every kind, present, future      and contingent (including uncalled share capital) and every kind of      interest in an asset; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      “consent” includes      an authorisation, approval, exemption, licence, order, permission or      waiver; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | “including” means      including without limitation and “includes” and “included” shall be      construed accordingly; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | “losses” includes      losses, actions, damages, claims, proceedings, costs, demands, expenses      (including fees) and liabilities and “loss” shall be      construed accordingly; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | a      “month” means a      period starting on one day in a calendar month and ending on the day      before the numerically corresponding day in the next calendar month,      except that: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | if      any such period would otherwise end on a day which is not a Business Day,      it shall end on the next Business Day in the same calendar month or, if      none, on the preceding Business Day;and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | if      there is no numerically corresponding day in the month in which that      period ends, that period shall end on the last Business Day in that later      month, |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | a      “person” includes      any person, individual, firm, company, corporation, government, state or      agency of a state or any undertaking or other association (whether or not      having separate legal personality) or any two or more of the foregoing;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | a      “regulation”      includes any regulation, rule, official directive, request or guideline      (whether or not having the force of law) of any governmental body, agency,      department or regulatory, self-regulatory or other authority or      organisation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.4 | The      terms of the documents under which the Secured Obligations arise and of      any side letters between the Chargor and the Chargee relating to the      Secured Obligations are incorporated in this Debenture to the extent      required for any purported disposition of the Charged Property contained      in this Debenture to be a validdisposition; |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | The      parties intend that this document shall take effect as a    deed; |
|-----|----------------------------------------------------------------------------|

| 1.6 | The      following covenants shall be implied into any disposition made in this      Debenture with “full      title guarantee”; |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | that      the person making the disposition has the right (with the concurrence of      any other person conveying the property) to dispose of the property as he      purports to; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | that      the person making the disposition will, at his own cost, do all that he      reasonably can do to give the person to whom he disposes the property the      title he purports to give, which obligation  includes: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | in      relation to a disposition of an interest in land the title to which is      registered, doing all that he reasonably can to ensure that the person to      whom the disposition is made is entitled to be registered as proprietor      with at least the class of title registered immediately before the      disposition; and |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | in      relation to a disposition of an interest in land the title to which is      required to be registered by virtue of the disposition, giving all      reasonable assistance fully to establish to the satisfaction of the      relevant land registry authorities the right of the person to whom the      disposition is made to registration as  proprietor; |
|--|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | that      the person making the disposition is making it free  from: |
|--------|-----|----------------------------------------------------------------------|

|   | (i) | all      charges and encumbrances (including all liabilities imposed and rights      conferred by or under any enactment);and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | all      other rights exercisable by thirdparties; |
|--------|------|----------------------------------------------------|

|   | (d) | in      connection with any dispositions of leasehold property, that the lease is      subsisting at the time of the disposition and that there is no subsisting      breach of a condition or tenant’s obligation and nothing which, at that      time, would render the lease liable to forfeiture;  and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | in      connection with any disposition which is a mortgage of property subject to      a rentcharge, or of leasehold land,that: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | (in      the case of a rentcharge) the mortgagor or chargor will fully and promptly      observe and perform all the obligations under the instrument creating the      rentcharge that are for the time being enforceable with respect to the      property by the owner of the rentcharge in his capacity as such;      and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | (in      the case of a leasehold) the mortgagor or chargor will fully and promptly      observe and perform all the obligations under the lease subject to the      mortgage that are for the time being imposed on him in his capacity as      tenant under the lease. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.7 | All      defined terms in the Loan Agreement shall have the same meaning when used      in this Debenture. |
|-----|------------------------------------------------------------------------------------------------------------|

| 1.8 | If      there is a conflict between this Debenture and the Loan Agreement then (to      the extent permitted by law) the provisions of the Loan Agreement shall      take priority over the provisions of this Debenture except in relation to      the Due Date; |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.9 | In      this Debenture, unless a contrary intention  appears: |
|-----|---------------------------------------------------------------|

|   | (a) | references      to statutory provisions shall be construed as references to those      provisions as amended or re-enacted or as their application is modified by      other provisions from time to time and shall include references to any      provisions of which they are re-enactments (whether with or without      modification); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | references      to clauses and schedules are references to clauses hereof and schedules      hereto; references to sub-clauses or paragraphs are, unless otherwise      stated, references to sub-clauses of the clause or paragraphs of the      schedule in which the referenceappears; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | references      to the singular shall include the plural and vice versa and      references to the masculine shall include the feminine and/or neuter and      vice      versa; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | references      to persons shall include companies, partnerships, associations and bodies      of persons, whether incorporated or unincorporated;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | references      to assets include property, rights and assets of every      description. |
|--------|-----|------------------------------------------------------------------------------------------|

| 2. | PAYMENT OF SECURED      OBLIGATIONS |
|----|-------------------------------------|

| 2.1 | Extension and Amendment of Loan      Agreement |
|-----|------------------------------------------------|

|   | (a) | Clause      1 of the Loan Agreement is amended to reflect that in sub-clause (6), the      definition of Due Date is now the 31st      day of August 2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | The      Loan Agreement is further amended to reflect that the Subordinated      Indebtedness must be repaid asfollows: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   |  (c) | In      the event that the Chargor fails to execute water supply contracts with      the Government of the British Virgin Islands with regard to the Baughers      Bay and Bar bay plants on or before 15 September 2007, same will      constitute a material adverse change to the Chargor’s financial condition      and the entire amount of the Subordinated Indebtedness will become      immediately repayable pursuant to Clause 3(15) of the Loan      Agreement. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2.2 | Covenant To Comply |
|-----|--------------------|

| 2.3 | Interest on      Demands |
|-----|--------------------------|

| 3. | CHARGING      CLAUSE |
|----|----------------------|

| 3.1 | Fixed      Charges |
|-----|--------------------|

|   | (i) | all its real      and leasehold property; |
|--------|-----|-------------------------------------------|

|   | (ii) | all its fixed      assets;      and |
|--------|------|-------------------------------------|

|   | (iii) | its      goodwill and uncalled capital. |
|--------|-------|-----------------------------------------|

| 3.2 | Floating      Charge |
|-----|----------------------|

3.1

| 3.3 | Conversion of Floating      Charge |
|-----|------------------------------------|

3.2

|   | (a) | An      Event of Default has occurred; |
|--------|-----|----------------------------------------|

|   | (b) | the      Chargee considers that any of the Charged Property may be in jeopardy or      in danger of being seized or sold pursuant to any form of legal process;      or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Chargee, acting reasonably, considers that it is necessary in order to      protect the priority of thesecurity. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

| 3.4 | Automatic Conversion of      Floating Charge |
|-----|----------------------------------------------|

----

|   | (a) | the      Chargor creates or attempts to create any Security over any of the Charged      Property; |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | any      person levies or attempts to levy any distress, execution or other process      against any of the Charged Property which is subject to the floating      charge created pursuant to Clause 3.2 (Floating      Charge); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Chargor becomes insolvent within the meaning set out in section 8 (Meaning of      “Insolvency”) of the Act; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | a      resolution is passed or an order is made for the winding-up, dissolution,      administration or re-organisation of the Chargor or an administrator or      administrative receiver is appointed to the  Chargor. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.5 | Reconversion of a Floating      Charge |
|-----|----------------------------------------|

| 4. | CONTINUING      SECURITY |
|----|--------------------------|

| 4.1 | Continuing      Security |
|-----|--------------------------|

| 4.2 | Other      Security |
|-----|---------------------|

| 4.3 | Immediate      Recourse |
|-----|-------------------------|

| 4.4 | Chargor’s      Obligations |
|-----|----------------------------------|

|   | (a) | any      winding-up, dissolution, administration or re-organisation of or other      change in the Chargor or any otherperson; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      of the Secured Obligations being at any time illegal, invalid,      unenforceable or ineffective; |
|--------|-----|------------------------------------------------------------------------------------------------------------|

----

|   | (c) | any      time or other indulgence being granted to the Chargor or any other      person; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (d) | any      amendment, variation, waiver or release of any of the Secured      Obligations; |
|--------|-----|------------------------------------------------------------------------------------------|

|   | (e) | any      failure to take or failure to realise the value of any other collateral in      respect of the Secured Obligations or any release, discharge, exchange or      substitution of any such collateral;or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any      other act, event or omission which but for this provision would or might      operate to impair, discharge or otherwise affect the obligations of the      Chargor under this Debenture. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | No    Prejudice |
|-----|-----------------|

| 4.6 | Remedies and      Waivers |
|-----|---------------------------|

| 4.7 | No    Liability |
|-----|-----------------|

|   | (a) | taking      any action permitted by thisDebenture; |
|--------|-----|----------------------------------------------------|

|   | (b) | any      neglect or default in connection with the Charged Property;    or |
|--------|-----|----------------------------------------------------------------------------|

|   | (c) | taking      possession of or realising all or any part of the Charged      Property, |
|--------|-----|--------------------------------------------------------------------------------------|

| 4.8 | Partial      Invalidity |
|-----|-------------------------|

| 5. | FURTHER      ASSURANCE |
|----|------------------------|

| (a) | The      Chargor will, at its own expense, promptly following request by the      Chargee, execute such deeds and other agreements, deliver such title      documents and otherwise take whatever action the Chargee reasonably may      require: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | to      perfect and/or protect the security created (or intended to be created) by      this Debenture (including registration of the security created under this      Debenture with the Registrar of Corporate Affairs pursuant to Section 162      of the BVI BC Act); |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | to      facilitate the realisation or enforcement of such  security; |
|--------|------|----------------------------------------------------------------------|

|   | (iii) | to      facilitate the exercise of any of the Chargee’s rights, powers or      discretions under this Debenture;and/or |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | to      confer on the Chargee security over any assets of the Chargor (in whatever      jurisdiction situated) equivalent or similar to the security intended to      be conferred by this Debenture, |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Any      security document required to be executed by the Chargor under this Clause      5 will contain clauses corresponding to and      no more onerous than the provisions set out in this    Debenture. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The      Chargor undertakes that it willnot: |
|-----|----------------------------------------------|

|   | (i) | do      or cause or permit to be done anything which will, or could be reasonably      expected to, materially adversely affect the security or the rights of the      Chargee hereunder or which in any way which is inconsistent with or      materially depreciates, jeopardises or otherwise prejudices the security;      or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | create      or permit to subsist any Security over any of its assets from time to time      other than as permitted by the Loan Agreement or Loan      Extension. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | REPRESENTATIONS |
|----|-----------------|

|   | (a) | the      Chargor is a company duly organised, validly existing and in good standing      under the laws of the British VirginIslands; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      Chargor is the legal and beneficial owner of all of the Charged Property      free from any Security  (other than that created by this      Debenture or as permitted under the Finance Documents) and any options or      rights of pre-emption; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the      Chargor has full power and authority (i) to be the legal and beneficial      owner of the Charged Property, (ii) to execute and deliver this Debenture      and (iii) to comply with the provisions of, and perform all its      obligations under, this Debenture; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | this      Charge constitutes the Chargor's legal, valid and binding obligations      enforceable against the Chargor in accordance with its terms except as      such enforcement may be limited by any relevant bankruptcy, insolvency,      administration or similar laws affecting creditors' rights      generally; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the      entry into and performance by the Chargor of this Debenture does not      violate (i) any law or regulation of any governmental or official      authority, or (ii) any agreement, contract or other undertaking to which      the Chargor is a party or which is binding upon the Chargor or any of its      assets; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | all      consents, licences, approvals and authorisations required in connection      with the entry into, performance, validity and enforceability of this      Debenture have been obtained and are in full force and effect;      and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the      Chargor has taken all corporate and other action required to approve its      execution, delivery and performance of this  Debenture. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | UNDERTAKINGS |
|----|--------------|

| 7.1 | Duration of      Undertakings |
|-----|-------------------------------|

7

| 7.2 | General      Undertakings |
|-----|---------------------------|

| 7.3 | Collection of Book Debts and      Other Debts |
|-----|-----------------------------------------------|

| (a) | After      an Event of Default has occurred, the Chargor will, as agent for the      Chargee, collect all Book Debts and Other Debts charged to the Chargee      under this Debenture, pay the proceeds into an Account (or, in the case of      Other Debts, such account (a “Nominated Account”) as      the Chargee may nominate) forthwith on receipt and, pending that payment,      hold those proceeds on trust for theChargee. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      Chargor shall not charge, factor, discount or assign any of the Book Debts      or Other Debts in favour of any other person, or purport to do so unless      permitted by the FacilityAgreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.4 | Accounts |
|-----|----------|

| (a) | It      will as soon as reasonably practicable pay all monies received by it into      an Account held in its name and charged pursuant to this      Debenture. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | It      will not, without the prior consent of the Chargee, open or maintain an      account with any bank, financial institution or other person other than an      Account. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | The      Chargor will procure that the bank with which any Account or Nominated      Account is maintained signs and delivers to the Chargee a letter      substantially in the form set out in Schedule 2 (Form of notice to banks      operating Accounts and/or Nominated  Accounts). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (d) | Once      an Event of Default has occurred the Chargor may not withdraw any monies      from time to time standing to the credit of any Account or Nominated      Account, unless expressly permitted to do so under the Facility Agreement      or with the prior consent of theChargee. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.5 | Retention of      Documents |
|-----|-----------------------------|

| 7.6 | Power to      Remedy |
|-----|----------------------|

| 8. | POWER OF      ATTORNEY |
|----|------------------------|

| 8.1 | Appointment and      Powers |
|-----|-----------------------------|

| (a) | The      Chargor, by way of security, irrevocably appoints the Chargee, any      Receiver and any person nominated for the purpose by the Chargee or any      Receiver severally to be its attorney and in its name, on its behalf and      as its act and deed to execute, deliver and perfect all documents and do      all things which the attorney may consider to be required or desirable      for: |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | carrying      out any obligation imposed on the Chargor by this Debenture (including the      execution and delivery of any deeds, charges, assignments or other      security and any transfers of the Charged Property) with which the Chargor      has failed to comply; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | enabling      the Chargee, any Receiver and any person nominated for the purpose by the      Chargee or any Receiver to exercise, or delegate the exercise of, any of      the rights, powers and authorities conferred on them by or pursuant to      this Debenture or by law (including, after the occurrence of an Event of      Default, the exercise of any right of a legal or beneficial owner of the      Charged Property). |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      Chargee, any Receiver and any person nominated for the purpose by the      Chargee or any Receiver shall only use the power of attorney conferred on      it pursuant to paragraph (a), above,upon: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | an      Event of Default; or |
|--------|-----|------------------------------|

|   | (ii) | if      the Chargor has failed to comply with a further assurance or perfection      obligation within 10 Business Days of being notified of that failure and      being requested to comply. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.2 | Ratification |
|-----|--------------|

----

| 9. | ENFORCEMENT AND POWERS OF THE      CHARGEE |
|----|--------------------------------------------|

| 9.1 | Statutory      Restrictions |
|-----|-----------------------------|

| 9.2 | Enforcement      Powers |
|-----|-------------------------|

| 9.3 | Statutory      Powers |
|-----|-----------------------|

| 9.4 | Appointment of Receiver or      Administrator |
|-----|-----------------------------------------------|

| (a) | At      any time after an Event of Default has occurred, or if so requested by the      Chargor, the Chargee may by writing under hand signed by any officer or      manager of the Chargee, appoint any person (or persons) to be a Receiver      of all or any part of the ChargedProperty; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | For      the avoidance of doubt, a Receiver appointed under Clause 9.4(a) may be an      administrative receiver in accordance with section 142(1)(a) of the      Act. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.5 | Exercise of      Powers |
|-----|-------------------------|

| 9.6 | Receiver as      Agent |
|-----|------------------------|

----

| 9.7 | Powers of      Receiver |
|-----|-------------------------|

|   | (a) | develop,      reconstruct, amalgamate or diversify any part of the business of the      Chargor; |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (b) | enter      into or cancel any contracts on any terms or  conditions; |
|--------|-----|----------------------------------------------------------------------|

|   | (c) | incur      any liability on any terms, whether secured or unsecured, and whether to      rank for payment in priority to this security or  not; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | let      or lease or concur in letting or leasing, and vary the terms of,      determine, surrender leases or tenancies of, or grant options and licences      over, or otherwise deal with, all or any of the Charged Property, without      being responsible for loss ordamage; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | establish      subsidiaries to acquire interests in any of the Charged Property and/or      arrange for those subsidiaries to trade or cease to trade and acquire any      of the Charged Property on any terms and  conditions; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | make      and effect all repairs, renewals and improvements to any of the Charged      Property and maintain, renew, take out or increase    insurances; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | exercise      all voting and other rights attaching to the investments and stocks,      shares and other securities owned by the Chargor and comprised in the      Charged Property; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | redeem      any prior Security on or relating to the Charged Property and settle and      pass the accounts of the person entitled to such prior Security, so that      any accounts so settled and passed shall (subject to any manifest error)      be conclusive and binding on the Chargor and the money so paid shall be      deemed to be an expense properly incurred by the  Receiver; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | appoint      and discharge officers and others for any of the purposes of this      Debenture and/or to guard or protect the Charged Property upon terms as to      remuneration or otherwise as he may thinkfit; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | settle      any claims, accounts, disputes, questions and demands with or by any      person who is or claims to be a creditor of the Chargor or relating to any      of the Charged Property; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | implement      or continue the development of (and obtain all consents required in      connection therewith) and/or complete any buildings or structures on any      real property comprised in the ChargedProperty; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | purchase      or acquire any land or any interest in or right over  land; |
|--------|-----|---------------------------------------------------------------------------|

|   | (m) | exercise      on behalf of the Chargor all the powers conferred on a landlord or a      tenant by any legislation from time to time in force in any relevant      jurisdiction relating to rents or agriculture in respect of any part of      the real property comprised in the Charged Property;  and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (n) | do      all other acts and things (including signing and executing all documents      and deeds) as the Receiver considers to be incidental or conducive to any      of the matters or powers in this Clause 9.7,      or otherwise incidental or conducive to the preservation, improvement or      realisation of the Charged Property, and use the name of the Chargor for      all such purposes, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.8 | Removal of      Receiver |
|-----|--------------------------|

| 9.9 | Remuneration of      Receiver |
|-----|-------------------------------|

| 9.10 | Several      Receivers |
|------|------------------------|

| 10. | APPLICATION OF      MONEY |
|-----|---------------------------|

| 10.1 | Insurance      Proceeds |
|------|-------------------------|

| 10.2 | Suspense      Account |
|------|-----------------------|

| 10.3 | Application of      Monies |
|------|----------------------------|

----

| 11. | PROTECTION OF THIRD      PARTIES |
|-----|----------------------------------|

| 11.1 | No Obligation to      Enquire |
|------|-------------------------------|

|   | (a) | the      right of the Chargee or any Receiver to exercise any of the powers      conferred by this Debenture has arisen or become exercisable or as to the      propriety or validity of the exercise or purported exercise of any such      power; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any      of the Secured Obligations remain outstanding or be concerned with notice      to the contrary and the title and position of such a purchaser or other      person shall not be impeachable by reference to any of those      matters. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.2 | Receipt      Conclusive |
|------|-------------------------|

| 12. | PROTECTION OF CHARGEE AND      RECEIVER |
|-----|-----------------------------------------|

| 12.1 | No    Liability |
|------|-----------------|

| 12.2 | Possession of Charged      Property |
|------|-------------------------------------|

| 12.3 | Liability of      Chargor |
|------|---------------------------|

----

| 13. | COSTS AND      EXPENSES |
|-----|-------------------------|

| 13.1 | Expenses |
|------|----------|

| 13.2 | Enforcement      Expenses |
|------|---------------------------|

| 13.3 | Stamp Duties,      etc |
|------|------------------------|

| 14. | CUMULATIVE POWERS AND AVOIDANCE      OF PAYMENTS |
|-----|--------------------------------------------------|

| 14.1 | Cumulative      Powers |
|------|------------------------|

| 14.2 | Amounts      Avoided |
|------|----------------------|

| 14.3 | Discharge      Conditional |
|------|----------------------------|

----

| 15. | RULING OFF      ACCOUNTS |
|-----|--------------------------|

| 16. | DELEGATION |
|-----|------------|

| 17. | REDEMPTION OF PRIOR      CHARGES |
|-----|----------------------------------|

| 18. | NOTICES |
|-----|---------|

| 19. | CHANGES TO PARTIES  |
|-----|--------------------------|

| 19.1 | Assignment by the      Chargee |
|------|--------------------------------|

| 19.2 | Changes to      Parties |
|------|-------------------------|

| 20. | MISCELLANEOUS |
|-----|---------------|

| 20.1 | Certificates      Conclusive |
|------|------------------------------|

----

| 20.2 | Counterparts |
|------|--------------|

| 20.3 | Perpetuity      Period |
|------|------------------------|

| 21. | PAYMENTS FREE OF      DEDUCTION |
|-----|---------------------------------|

| 22. | RELEASE OF      SECURITY |
|-----|--------------------------|

| 22.1 | Redemption of      Security |
|------|-----------------------------|

22.2

| 22.2 | Avoidance of      Payments |
|------|----------------------------|

| 23. | GOVERNING      LAW |
|-----|--------------------|

| 24. | JURISDICTION |
|-----|--------------|

| 24.1 | British Virgin Islands      Courts |
|------|------------------------------------|

| 24.2 | Convenient      Forum |
|------|-----------------------|

| 24.3 | Exclusive      Jurisdiction |
|------|-----------------------------|

----

| Account      Bank                                |   | SWIFT      Code |   | Account      Number |
|--------------------------------------------------|--------|-----------------|--------|---------------------|
|                                             |   |            |   |                |
| Scotiabank      (British Virgin Islands) Limited |   | NOSCVGVG        |   | 3151      17        |

----

----

| Executed and delivered as a      Deed on behalf of |
|----------------------------------------------------|
| OCEAN      CONVERSION (BVI) LTD.                   |
| By      its authorised signatories:                |
|                                               |
| /s/      Frederick W. McTaggart                    |   |
| Name:                                              |
| Title:  Director                         |
|                                               |
| /s/      Glenn Harrigan                            |   |
| Name:                                              |
| Title:  Director                         |
|                                               |
| THE CHARGEE                                        |
|                                               |
| CONSOLIDATED      WATER CO. LTD.                   |
| By      its authorised signatories:                |
|                                               |
| /s/      Frederick W. McTaggart                    |   |
| Name:                                              |
| Title:  Director                         |
|                                               |
| /s/      J. M. Parker                              |   |
| Name:                                              |
| Title:  Director                         |

----