Document:

EX-10.3

 Exhibit 10.3 

CITIZENS BANK, NATIONAL ASSOCIATION 

209 Church Street 
 New
Haven, Connecticut 06510 
 September 4, 2019 

Connecticut Water Service, Inc. 
 93 West Main Street 

Clinton, CT 06413 
  

	Re:	 First Modification of Revolving Credit Facility (the “First
Modification”) 

 To Whom It May Concern: 

We are pleased to confirm the willingness of Citizens Bank, National Association (the “Bank”) to amend and modify the terms and
conditions of the existing revolving credit facility (the “Facility”) provided to Connecticut Water Service, Inc. (the “Company”) pursuant to a letter agreement between the Bank and the Company dated as of December 14, 2018
(as amended and in effect from time to time, the “Letter Agreement”). Any capitalized terms used in this First Modification but not otherwise defined herein shall have the meanings for such terms set forth in the Letter Agreement. 

The Letter Agreement is hereby amended as follows: 

Section 2 of the Letter Agreement, entitled “Amount,” is hereby amended and restated in its entirety as follows: 

2.     Amount. The aggregate principal amount of loans, advances and other extensions of credit outstanding under
the Facility as provided herein (each, a “Revolving Loan” and collectively, the “Revolving Loans”) shall not at any time exceed (i) $95,000,000 during the period commencing as of September 4, 2019 and continuing through
February 29, 2020 and (ii) $75,000,000 at all times after March 1, 2020 (the “Commitment Amount”). Except as provided herein, the Commitment Amount shall not be subject to reduction except upon the mutual agreement of the Bank
and the Company. 
 Section 4 of the Letter Agreement, entitled “Promissory Note,” is hereby amended and restated as
follows: 
 4.     Promissory Note. The Facility shall be evidenced by a Second Amended and Restated Promissory
Note dated September 4, 2019, in the original principal amount of $95,000,000, made by the Company to the order of the Bank (the “Note”). The Note is made in substitution for, but not as a novation of, the

 
Amended and Restated Promissory Note dated December 14, 2018. The Note shall be in substantially the form of Exhibit A attached hereto. The Bank shall record the date and amount of
each Revolving Loan in a loan account maintained by the Bank for the Facility and the Bank’s records with respect to such loan account shall, absent manifest error, be conclusive and binding. 

Exhibit A to the Letter Agreement, entitled “Form of Amended and Restated Promissory Note,” is hereby amended and restated by
deleting Exhibit A to the Letter Agreement and replacing it with Exhibit A hereto. 
 The Bank and the Company hereby acknowledge and agree
that except as provided in this First Modification, the Letter Agreement, the Note and all other documents executed in connection therewith remain in full force and effect and have not been modified or amended in any respect, it being the intention
of Bank and the Company that this First Modification and the Letter Agreement be read, construed and interpreted as one and the same instrument. 

This First Modification and the Letter Agreement constitute the entire agreement between the parties hereto with respect to the subject matter
hereof and thereof. Neither this First Modification, the Letter Agreement nor any provision hereof and thereof may be changed, waived, discharged, modified, or terminated orally, but only by an instrument in writing signed by the parties required to
be a party thereto pursuant to the Letter Agreement. 
 This First Modification may be executed in any number of counterparts and by the
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page
to this First Modification by telecopier, facsimile or other electronic means shall be as effective as delivery of a manually executed counterpart of this First Modification. The signature of any party on this First Modification by
telecopier, facsimile or other electronic means is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature on an original document. At the request of any
party, any telecopier, facsimile or other electronic signature is to be re-executed in original form by the party which executed the telecopier, facsimile or other electronic signature. No party raise the use
of a telecopier, facsimile or other electronic signature, or the fact that any signature was transmitted through the use of a telecopier, facsimile machine or other electronic means, as a defense to the enforcement of this First Modification. 

This First Modification shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Connecticut.

 Please confirm the Company’s acceptance of this First Modification by signing and returning to us the enclosed copy of this First Modification. 

[remainder of page intentionally left blank; signature page follows] 

 [Signature Page to First Modification of Revolving Credit Facility] 

 

			
	CITIZENS BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Anthony H. Castellon

	Name:	 	Anthony H. Castellon
	Title:	 	Senior Vice President

 The Company does hereby acknowledge and agree to the terms and conditions of the foregoing First
Modification as well as the Letter Agreement, as amended, and does hereby ratify, confirm and restate other document, agreement and instrument executed by the Company in connection with the Letter Agreement, as amended, the grant, if any, of the
liens, security interests and other encumbrances thereunder, and the agreements, covenants, obligations, representations and warranties thereunder and therein as of the date hereof. 

 

			
	CONNECTICUT WATER SERVICE, INC.
		
	By:	 	 /s/ David C. Benoit

	Name:	 	David C. Benoit
	Title:	 	President and CEO

 EXHIBIT A 

FORM OF SECOND AMENDED AND RESTATED PROMISSORY NOTE 

[see attached]EX-10.4

 Exhibit 10.4 

SECOND AMENDED AND RESTATED PROMISSORY NOTE 

September 4, 2019 

			
	$95,000,000.00	  	Clinton, Connecticut

 FOR VALUE RECEIVED, the undersigned CONNECTICUT WATER SERVICE, INC., a Connecticut corporation
(“Maker”), hereby unconditionally promises to pay to CITIZENS BANK, NATIONAL ASSOCIATION, a national banking association (the “Payee” or “Bank”), or any subsequent assignee or holder (Payee and any subsequent assignee
or holder being sometimes referred to as “Holder”) at the office of the Bank located at 209 Church Street, New Haven, Connecticut 06510, the principal amount of NINETY FIVE MILLION AND NO/100 DOLLARS ($95,000,000.00) or such lesser amount
as may have been loaned, advanced or readvanced to Maker by the Bank under the terms of that certain Letter Agreement dated as of December 14, 2018 by and between Maker and the Bank (as amended and in effect from time to time, the “Letter
Agreement”), together with interest thereon as provided herein and all other sums due from Maker to the Bank under the Letter Agreement and this Note. 

The unpaid principal amount of this Note shall be paid at the times and in the manner set forth in Section 9 of the
Letter Agreement, but if not sooner paid or demanded, the entire unpaid principal amount of this Note, together with accrued and unpaid interest thereon, shall be due and payable on the Maturity Date, unless such date shall be extended pursuant to
Section 3 of the Letter Agreement. 
 Interest on the unpaid principal amount of this Note shall be payable at the
rates set forth in Section 6 of the Letter Agreement and at the times and in the manner specified in Section 9 of the Letter Agreement. 

This Note is the promissory note referred to in Section 4 of the Letter Agreement, the terms and conditions of which
are hereby incorporated by this reference, and is made in substitution for, but not as a novation of, the $75,000,000 Amended and Restated Promissory Note dated December 14, 2018. Capitalized terms used herein without definition shall have the
meanings set forth in the Letter Agreement. 
 Overdue payments of principal (whether at stated maturity, by acceleration or otherwise),
and, to the extent permitted by law, overdue interest, shall bear interest at the rate and in the manner set forth in the Letter Agreement. Any late payment of principal or interest shall be subject to a late payment charge set forth in the Letter
Agreement. The foregoing shall not affect the Bank’s rights to exercise any of its rights and remedies provided in the Letter Agreement if an Event of Default has occurred. 

No reference to the Letter Agreement or any provision thereof shall affect or impair the absolute and unconditional obligation of the Maker of
this Note to pay the principal of and interest on this Note as herein provided. 

 All sums paid under this Note shall be applied first to all fees, costs and expenses
incurred by the Bank under the Letter Agreement and this Note, then to any late charges payable by Maker, then to any accrued and unpaid interest, with the balance, if any, to be applied to unpaid principal. 

Until notified in writing of the transfer of this Note, Maker shall be entitled to deem Payee or such person who has been so identified by the
transferor in writing to Maker as the holder of this Note, as the owner and holder of this Note. Holder agrees that before disposing of this Note, or any part hereof, it will make a notation on Schedule A attached hereto and incorporated
herein by reference evidencing (i) the date and amount of each advance to be evidenced by this Note and (ii) the date and amount of each principal payment made with respect thereto; provided, however, that the failure to make
a notation of any payment made on this Note shall not limit or otherwise affect the obligations of Maker under this Note. 
 The Letter
Agreement and this Note shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Connecticut. 

Maker and each endorser, guarantor and surety of this Note, and each other person liable or who shall become liable for all or any part of the
indebtedness evidenced by this Note: 
 (a) waive demand, presentment, protest, notice of protest, notice of dishonor, diligence in
collection, notice of nonpayment and all notices of a like nature; and 
 (b) consent to (i) the release, surrender, exchange or
substitution of all or any part of the security for the indebtedness evidenced by this Note, or the taking of any additional security; (ii) the release of any or all other persons from liability, whether primary or contingent, for the
indebtedness evidenced by this Note or for any related obligations; and (iii) the granting of any other indulgences to any such person. 

(c) consent to (i) all renewals, extensions or modifications of this Note or the Letter Agreement (including any affecting the time of
payment), subject to Section 24 of the Letter Agreement, and (ii) all advances under this Note or the Letter Agreement. 
 Any such renewal,
extension, modification, advance, release, surrender, exchange, substitution, taking or indulgence may take place without notice to any such person, and, whether or not any such notice is given, shall not impair the liability of any such person.

 Maker and each endorser, guarantor and surety of this Note, and each other person liable or who shall become liable for all or any part
of the indebtedness evidenced by this Note, hereby give Holder a lien and right of setoff for all of their respective liabilities in respect of such indebtedness upon and against all of their respective deposits, credits and property, now or
hereafter in the possession or control of Holder or in transit to Holder. 
 If this Note is now, or hereafter shall be, signed by more than
one person, it shall be the joint and several obligation of all such persons (including, without limitation, all makers, endorsers, guarantors and sureties, if any) and shall be binding on all such persons and their

  
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respective heirs, executors, administrators, legal representatives, successors and assigns. This Note and all covenants, agreements and provisions set forth in this Note shall inure to the
benefit of Holder and its successors and assigns, including any lender(s) with which Holder may participate in the making of any loans or advances evidenced by this Note. 

As used in this Note, words of any gender shall be deemed to apply equally to any other gender, the plural shall include the singular and the
singular shall include the plural (as the context shall require), and the word “person” shall refer to individuals, entities, authorities and other natural and juridical persons of every type. 

MAKER AND EACH AND EVERY ENDORSER, GUARANTOR AND SURETY OF THIS NOTE, AND EACH OTHER PERSON WHO IS OR WHO SHALL BECOME LIABLE FOR ALL OR ANY
PART OF THIS NOTE, HEREBY ACKNOWLEDGE THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION AND WAIVE THEIR RIGHTS TO NOTICE AND HEARING UNDER CHAPTER 903a OF THE CONNECTICUT GENERAL STATUTES OR BY OTHER APPLICABLE LAW WITH
RESPECT TO ANY PREJUDGMENT REMEDY WHICH HOLDER MAY DESIRE TO USE. 
 MAKER AND EACH AND EVERY ENDORSER, GUARANTOR AND SURETY OF THIS NOTE,
AND EACH OTHER PERSON WHO IS OR WHO SHALL BECOME LIABLE FOR ALL OR ANY PART OF THIS NOTE, HEREBY WAIVES TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION, OR PROCEEDING OR ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTION
OF WHICH THIS NOTE IS A PART AND/OR IN THE ENFORCEMENT BY THE BANK OF ANY OF ITS RIGHTS AND REMEDIES HEREUNDER OR UNDER APPLICABLE LAW. MAKER ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, VOLUNTARILY AND ONLY AFTER CONSIDERATION OF THE
RAMIFICATIONS OF THIS WAIVER BY ITS ATTORNEY. 
 IN WITNESS WHEREOF, Maker has executed this Note as of the date first set forth above. 

 

			
	CONNECTICUT WATER SERVICE, INC.
		
	By:	 	 /s/ David C. Benoit

	Name:	 	David C. Benoit
	Title:	 	President and CEO

  
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 SCHEDULE A 

TO SECOND AMENDED AND RESTATED PROMISSORY NOTE 
  

											
	DATE	 	AMOUNT	 	ABR Rate	 	 Adjusted

LIBOR Rate
	 	DATE PAID	 	 NOTATION

MADE BY

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