Document:

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                                                                 Exhibit 10.12.1

                                 TRUST AGREEMENT

                                     BETWEEN

                            CONNECTICUT WATER COMPANY

                                       AND

                                 RIGGS BANK N.A.

                                     TRUSTEE

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         This Trust Agreement, hereinafter referred to as the `Agreement', is
made as of the date appearing at the end hereof but effective for all purposes
as of June 1, 2002, between Connecticut Water Company hereinafter referred to as
the "Employer", and Riggs Bank NA., a national banking association organized and
existing under the laws of the United States and having its principal office and
place of business in Washington, D.C., hereinafter referred to as the "Trustee'.

                                   WITNESSETH

         WHEREAS, the Employer has adopted Savings Plan of Connecticut Water
Company, hereinafter collectively referred to as the "Plan', for the benefit of
eligible employees and alternate payees and beneficiaries of deceased eligible
employees, hereinafter referred to as "Participants"; and

         WHEREAS, the Plan provides that the assets thereof be held, IN TRUST,
by a trustee, subject to the provisions of a trust agreement to be entered into
between the Employer and a trustee or trustees;

         WHEREAS, the Employer and its designated agent have entered into a
DCXchange Brokerage Agreement with PFPC Distributors, Inc., providing for daily
trading of certain assets of a trust to be established under the Plan;

         WHEREAS, the Employer wishes to appoint the Trustee to hold and
administer the Plan assets subject to the DCXchange Brokerage Agreement and
other assets as agreed upon, as a directed trustee pursuant to the terms of this
Trust Agreement, and the Trustee is willing to serve in such capacity;

         NOW THEREFORE, the Employer and the Trustee agree as follows:

         1.       Fund.

         The Employer hereby appoints the Trustee to serve as Trustee for the
assets of the Plan subject to the DCXchange Brokerage Agreement and other assets
as agreed to by the Trustee, and establishes with the Trustee a trust account or
accounts consisting of such sums of money and such other property acceptable to
the Trustee as shall from time to time be paid or delivered to the Trustee
pursuant to this Agreement. All such money and property, all investments made
therewith and proceeds thereof and all earnings and profits thereon, less any
payments or distributions made by the Trustee pursuant to the terms of this
Agreement, are referred to herein as the "Fund".

         2.       Contributions and Distributions.

         (a)      The Employer shall make contributions to the Fund pursuant to
the terms of the Plan in such manner as agreed to by the Trustee. The Trustee
shall have no duty to determine or to enforce payment of any contribution due
under the Plan or any responsibility for the adequacy of the funding policy
adopted by the Employer to meet and discharge liabilities under the Plan.

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         (b)      The Trustee shall make such payments and distributions as
directed in writing by the Employer. Such written direction of the Employer
shall be deemed a certification that such payments and distributions comply with
the terms of the Plan and the Employee Retirement Income Security Act of 1974 as
now in effect or as it may hereafter be amended (hereinafter referred to as
"ERISA"), and (except as provided in Section 20 of this Agreement), the Trustee
shall have no duty to verify that such payments and distributions comply with
the provisions of the Plan and applicable law.

         3.       Investments.

         (a)      The Employer by written direction to the Trustee shall
designate the investment options to be offered to the Participants and an agent
(the "Agent"), who shall be authorized to determine the allocation of available
moneys for investment among such investment options and initiate transactions
for such investment. The Trustee shall have no duty to question any action or
direction of the Employer or its Agent or any failure to give directions, or to
review the securities which are held pursuant to the Employer's directions, or
to make any suggestions to the Employer on the investment and reinvestment of,
or disposing of, such assets. The Trustee shall not have any liability or
responsibility for any loss to or depreciation of such assets because of the
purchase, retention or sale of assets in accordance with the Employer's
direction.

         (b)      If authorized by the Employer, the Trustee may invest
available cash balances with itself so that the cash balances may be credited
with interest paid in accordance with the Trustee's usual procedures. However,
nothing herein shall confer any authority or obligation upon the Trustee to
invest or reinvest such cash balances under an Employer's control until the
Trustee receives directions acceptable to the Trustee from the Employer.

         (c)      The transactions directed by the Employer shall be made upon
such terms and conditions and from or through such principals and agents,
including the Agent, as the Employer shall direct, provided that no transaction
shall be executed through the facilities of the Trustee without its consent.

         (d)      The Trustee shall execute any instruments necessary or
appropriate to enable the Trustee to carry out its powers hereunder. The
Employer shall give all directions to the Trustee in writing, signed by its
authorized officer, the Agent or any other such person or persons designated in
writing by the Employer, provided that the Trustee may accept oral directions
for purchases or sales from such designated person or persons subject to
confirmation in writing. The Trustee is to authorized to act and rely upon any
document delivered to it by facsimile transmission as if such documents were
originals, provided that the Trustee may request that the original document be
subsequently delivered to it by mail.

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         (e)      The Trustee shall not be liable for and the Employer will
indemnify and hold harmless the Trustee (and any employee of the Trustee) of and
from all liability or expense (including reasonable counsel fees) because of (1)
any investment action taken or omitted by the Trustee in good faith in
accordance with any direction of the Employer or any investment inaction in the
absence of directions from the Employer, or (2) any investment action taken in
good faith by the Trustee pursuant to an order to purchase or sell securities
placed by the Employer directly to a broker or dealer.

         (f)      The Trustee shall not be liable for any losses to the Fund
resulting from the disposition of any investment received from the Employer.
Until receipt of any written notice of the Employer pertaining to employer
investments, the Trustee shall be fully protected in relying upon the latest
prior written notice of the Employer received by it.

         4.       Insurance Policies and Contracts. Unless the Plan is part of a
profit sharing and/or 401(k) plan which does not provide for annuities as an
optional form of benefit payment, the Employer may direct the Trustee to enter
into a contract or contracts or an agreement or agreements with one or more
legal reserve life insurance companies for the purchase of retirement income and
retirement annuity contracts (or policies), five-year renewable term life
insurance, one year renewable term life insurance or other form of life
insurance or other benefits, on an individual or group basis, in such manner and
in such form as the Employer may deem appropriate. Such retirement annuities and
other benefits may be purchased under one or more deposit administration type
group annuity contracts. In giving instructions concerning policies and
insurance contracts, the Employer shall give the Trustee written instructions
acceptable to the Trustee which shall include the name of the Participant, the
type of policy to be purchased, the amount of the premium or funds to be
forwarded, and the name of the insurance company. The Trustee shall not be
obligated to take any action on any policy or contract except upon Employer
written instructions acceptable to the Trustee and shall not be liable for its
acts in following the Employer's directions. The Employer shall give
instructions when requested to do so by the Trustee for any action the Trustee
must take as the contract holder or owner of a policy or insurance contract. If
the insurer denies liability under its policies or contracts, the Trustee shall
be under no obligation to bring an action unless the Employer so instructs and
has indemnified the Trustee to its satisfaction for all anticipated costs,
expenses and attorneys' fees. The Trustee is not a guarantor of any amounts due
or payable to a participant or beneficiary under any insurance contract.
Notwithstanding anything herein to the contrary, if the Plan is part of a profit
sharing and/or 401(k) plan which does not provide for annuities as an optional
form of benefit payment, the provisions of this paragraph shall neither apply
nor be enforceable.

         5.       Insurance Investment Contracts. The Employer or its agent may
direct the Trustee to invest all or a portion of the Fund in contracts issued by
insurance companies, including but not limited to contracts under which the
insurance company holds Fund assets in a separate account or commingled separate
account managed by the insurance company. Notwithstanding any provisions of such
contract, the Trustee's responsibilities shall be limited solely to receiving
and forwarding monies

<PAGE>

and other properties to and from the insurance company as the Employer directs.
The Employer shall assume all other duties, responsibilities, rights, or
obligations under the contract not expressly assumed by the insurance company
for the management, control, or administration of such assets. The Trustee may
rely upon statements made by any insurance company as they affect the Trustee's
duties hereunder. The Trustee shall not be liable or responsible for the acts or
omissions of any insurance company for the portion of the Fund over which the
insurance company has control.

         6.       Investment Powers. The Trustee shall have the following powers
and authority in the administration of the Trust; provided, however, that such
powers and authority shall be exercised by the Trustee only upon the receipt of
direction from the Employer or its Agent:

         (a)      To invest and reinvest the Fund free from any limitations
imposed by state law on investments of trust funds and without distinction
between income and principal in any property, real or personal, including, but
not limited to the following: common and preferred stocks (including stock of
the Employer, or any associated, affiliated or subsidiary company of the
Employer, to the extent permitted by ERISA; governmental obligations; equipment
trust certificates; participation certificates; investment companies or trusts;
collateral trust notes; savings and time deposits (including any deposit bearing
a reasonable rate of interest that a bank or similar financial institution named
in this Agreement makes in itself or an affiliate); mutual funds including
open-end investment companies registered under the Investment Company Act of
1940 to which Trustee or an affiliate provides investment advisory, investment
management or other similar services for a fee; commercial paper including
participation in variable amount notes of borrowers of prime credit; leasebacks;
mortgages and other interests in realty; corporate bonds, debentures, notes, and
other evidences of indebtedness, secured or unsecured (including bonds,
debentures or notes, whether secured or unsecured, of the Employer or any
associated, affiliated or subsidiary company of the Employer, to the extent
permitted by ERISA); non-income producing securities or property; options; and
participation in any group or common trust funds held or maintained by the
Trustee for commingling assets of participating trusts and exempt from Federal
Income tax including, but not limited to, any group or common trust fund which
is qualified under the provisions of Section 401(a) of the Internal Revenue Code
of 1986 as amended or any successor provisions thereto, the instrument of trust
creating any such qualified group or common trust fund, to the extent of the
Fund's equitable share thereof, being deemed adopted hereby.

         (b)      To vote in person or by proxy, general or special, any
securities held in the Fund; to exercise conversion privileges, subscription
rights or other options; to participate in reorganizations or other changes in
property rights.

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         (c)      To hold property hereunder in bearer form or to hold such
property in its own name or the name of its nominee, to combine certificates
representing investments hereunder with certificates of the same issue the
Trustee holds in other fiduciary capacities, to hold securities in definitive
form on a segregated or non-segregated basis or with a correspondent bank or
depository (including The Depository Trust Company (New York)) on a segregated
or non-segregated basis with such correspondent bank or depository empowered to
hold registrable securities in its nominee, to hold obligations of the United
States government and agencies thereof on a book entry basis at the appropriate
Federal Reserve bank; provided that the books and records of the Trustee shall
at all times show that all such property and securities are held hereunder, and
the trustee shall not hold any property or securities hereunder in the same
account as any individual property of the Trustee.

         (d)      To enter into contracts for or to make commitments either
alone or in company with others to purchase or sell at any future date any
property acquired for the Fund or which it may be authorized to acquire under
this Agreement.

         (e)      To retain, to exchange for any other property, to sell from
time to time in any manner (public or private), to convey or transfer any
property held in the Fund, and at any time, to divide, subdivide, partition,
mortgage, improve, alter, remodel, repair, and develop in any manner any
property, real or personal, to lease all or part of such property for any period
of time, without regard to the duration of the Trust, and to grant options to
buy or lease any such property, without regard to restrictions and without the
approval of any court.

         (f)      To delegate to a property manager or the holder or holders of
a majority interest in any real property or mortgage on real property at any
time constituting the Fund, the management and operation of any interest in such
real property or mortgage and the authority to sell such real property or
mortgage or otherwise carry out the decisions of such property manager or holder
or holders of such majority interest.

         (g)      To enforce by suit or otherwise, or to waive its rights on
behalf of the Fund, and to defend claims asserted against it or the Fund; to
compromise, adjust and settle any and all claims against or for the Fund.

         (h)      To borrow money from any source as may be necessary or
advisable to effectuate the purposes of the Fund.

         (i)      To organize corporations under the laws of any state hr the
purpose of acquiring or holding title to any property for the Fund.

         (j)      To employ and pay suitable agents and counsel, provided that
the Trustee is reimbursed for such expenses by the Employer.

<PAGE>

         (k)      To do all other acts that the Employer may deem necessary or
proper to carry out any of the foregoing powers or otherwise in the best
interests of the Fund.

         7.       Income Collection and Payments on Instructions. The Trustee
shall collect the income from the Fund and shall make payments from the Fund in
such amounts and in such manner as the Employer may direct from time to time in
writing; but the obligation of the Trustee to make payments hereunder shall not
be for an amount in excess of the realizable value of the Fund at the time, and
such directions need not specify the application to be made of such payments.

         8.       Trustee's Records and Statements. The Trustee shall keep
accurate and detailed records of all transactions hereunder, and all its
accounts, books and records relating thereto shall be open at all reasonable
times to the inspection of the Employer or its agents. The Trustee shall furnish
its usual reports of cash transactions and statements of assets and such other
reports as the Employer and the Trustee mutually agree.

         9.       Reports and Collective Fund Valuation.

         (a)      Within 90 days after the close of the Plan's fiscal year or
such other period as the Employer and Trustee may agree and within 90 days after
either the resignation or the removal of the Trustee as provided herein, the
Trustee shall file with the Employer a written account setting forth all
investments, receipts, disbursements and other transactions effected by it
during such fiscal year or during the period from the close of the last fiscal
year to the date of such resignation or removal.

         (b)      Whenever the Fund holds units of any group or common trust
fund, and the Trustee must value the Fund, the Trustee may use the most recently
available unit value determined in accordance with the rules and regulations
pertaining to each group or common trust fund.

         (c)      If the Trustee shall be required to value the assets of any
portion of the Fund under the direction of the Employer, the Trustee may rely
for all purposes of this Agreement on any valuation which the Employer furnishes
to the Trustee.

<PAGE>

         10.      Certifications. Instructions and Indemnification.

         (a)      Any action of the Employer pursuant to any of the provisions
of this Agreement shall be evidenced by a copy of a resolution of the Board of
Directors of the Employer, certified by the Secretary or an Assistant Secretary
of the Board of Directors and the Trustee shall be fully protected in relying
upon such resolutions so certified to it as actions of the Employer. If the
Employer designates a committee or administrator to perform duties with respect
to the Plan involving contact with the Trustee, the Employer shall promptly
certify to the Trustee from time to time the name or names of the members of
such committee or of the administrator together with specimen signatures, and
for all purposes hereunder the Trustee shall be entitled to rely upon such
certificates as evidence of the identity and authority of the committee or
administrator to act for the Employer. In the absence of any written
notification of change, the Trustee may assume that the committee or
administrator is the same as last reported to the Trustee. Any communication to
the Trustee by the committee or the administrator shall be in writing and shall
be signed by a majority of the committee or the administrator or by such person
as may be designated in writing by the committee or administrator to sign on its
behalf. The Trustee shall not be liable and the Employer shall indemnify and
hold harmless the Trustee of and from any liability or expense (including
Trustee reasonable counsel's fees) because of any disbursement of any part of
the Fund made by the Trustee in good faith at the direction of the Employer, the
committee or the administrator or any action taken or omitted in accordance with
directions of the Employer, the committee, or the administrator.

         (b)      The Employer shall indemnify and save the Trustee (and any
employee of the Trustee) harmless from and against any liability, cost or other
expense, including but not limited to the payment of reasonable attorneys' fees,
that the Trustee may incur in connection (whether direct or indirect) with this
Agreement or the Plan unless such liability, cost or other expense arises from
the Trustee's own negligence or willful misconduct. The Employer recognizes that
a burden of litigation may be imposed upon the Trustee as a result of some act
or transaction for which it has no responsibility or over which it has no
control under this Agreement. Therefore, the Employer agrees to indemnify and
hold harmless and, if requested, defend the Trustee (and any employee of the
Trustee) from any expenses (including reasonable counsel fees, liabilities,
claims, damages, actions, suits or other charges) incurred by the Trustee (or
its employees) in defending against any such litigation.

         11.      Expenses and Compensation. All expenses of the Trustee
relating to the acquisition, servicing, and disposition of investments
constituting part of the Fund, and all taxes of any kind whatsoever that may be
assessed under existing or future laws against the Fund or the income thereof
shall be charged to the Fund. All other expenses incurred by the Trustee in the
administration of this Agreement, including fees for legal services rendered to
the Trustee (whether or not rendered in connection with a judicial or
administrative proceeding and whether or not incurred while it is acting as
Trustee), such compensation to the Trustee as may be agreed upon from time to
time between the Trustee and the Employer, and all other proper charges and
disbursements of the Trustee, shall be paid from the Fund unless paid by the
Employer. Anything in the preceding sentences to the contrary notwithstanding,

<PAGE>

the Employer shall reimburse the Trustee for any such expenses incurred by it if
for any reason such expenses cannot be paid out of the Fund or, if paid by the
Fund, are subsequently required to be restored to the Fund or to the Plan.
Nothing in this Section 11 shall be deemed to prevent the Fund from bearing any
management fees and expenses that may be charged on any investment made in or
through a group or common trust fund, an insurance company, an investment
company or any other medium for group investment. To the extent that the Fund is
invested in mutual funds to which Trustee or an affiliate provides investment
advisory and other services, Trustee or an affiliate may receive fees from the
mutual funds for such services.

         12.      Removal and Resignation.

         (a)      Resignation or removal of the Trustee will not terminate the
Trust. In the event of any vacancy in the position of Trustee, whether by the
resignation or removal of the Trustee, the Employer will appoint a successor
trustee and such appointment will become effective upon the acceptance of its
office by the successor trustee. If the Employer does not appoint such a
successor within 60 days after notice of resignation or removal is given, the
Trustee may apply to a court of competent jurisdiction for such appointment.
Each successor Trustee so appointed and accepting a Trusteeship hereunder will
have all the rights and powers and all of the duties and obligations of the
original trustee under the provisions hereof.

         (b)      The Employer may remove the Trustee at any time upon sixty
(60) days notice in writing to the Trustee unless the Trustee agrees to a
shorter period. The Trustee may resign at any time upon sixty (60) days notice
in writing to the Employer unless the Employer agrees to a shorter period. Upon
such removal or resignation of the Trustee, the Employer shall appoint a
successor trustee and, upon the successor trustee's acceptance of such
appointment, the Trustee shall assign, transfer and pay over to such successor
trustee the funds and properties under its control, or if the Employer
establishes an alternative funding medium, the Trustee shall assign, transfer
and pay over the funds and properties under its control as the Employer directs.
The Trustee is authorized, however, to reserve such amount as it may deem
advisable for payments of fees and expenses for the settlement of its account or
otherwise, and any balance of such reserve remaining after the payment of such
fees and expenses shall be paid as the Employer directs.

         (c)      No trustee will be liable or responsible for anything done or
omitted to be done in the administration of the Fund before it became Trustee or
after it ceases to be Trustee.

         13.      Amendment. The Employer and the Trustee may amend this
Agreement at any time by a written agreement between them; provided, however,
that no such amendment shall make it possible for any part of the corpus or
income of the Fund to be used for or diverted to purposes other than the
exclusive benefit of Participants.

<PAGE>

         14.      Termination. The Employer reserves the right at any time to
terminate this Agreement upon sixty (60) days notice to the Trustee unless the
Trustee agrees to a shorter period. In the event of such termination of this
Agreement (or of the Plan under which it was established), the Trustee shall
continue to administer the Fund as herein provided until all of the purposes for
which it has been established have been accomplished or dispose of the Fund
after the payment or other provision for all expenses incurred in the
administration and termination of the Trust (including any compensation to which
the Trustee may be entitled), all in accordance with the written order of the
Employer or any successor thereto. Until the final distribution of such Fund,
the Trustee, and the Employer shall continue to have and exercise all of the
powers and discretions conferred upon them by this Agreement.

         15.      Successor Employer and Merger or Consolidation of Trustee. The
term "Employer" shall include its successors in business, and the term "Trustee"
shall apply to any trustee or trustees acting hereunder, whether signatory
hereto or subsequently designated by the Employer. Any corporation into which
the Trustee may be merged or with which it may be consolidated, or any
corporation resulting from any merger, reorganization, or consolidation to which
the Trustee may be a party, or any corporation to which all or substantially all
of the trust business of the Trustee may be transferred shall be the successor
of the Trustee hereunder without the execution or filing of any instrument or
the performance of any further act.

         16.      Return of Contributions. Contributions are conditional on
initial qualification of the Plan under Section 401(a), of the Internal Revenue
Code of 1986, and if the Plan and Trust do not so qualify, the Trustee may
return such contribution to the Employer upon the Employer's written direction
within one year after the date of denial of qualification. Contributions are
conditioned upon deductibility under Section 404 of the Internal Revenue Code of
1986 and to the extent such deductions are disallowed, or are made by a mistake
of fact, the Trustee may return said contribution (to the extent disallowed or
to the extent made by mistake of fact) to the Employer upon the Employer's
written direction. In making returns of contributions upon the Employer's
direction, the Trustee may accept such direction as the Employer's warranty that
such payment is provided for in the Plan and complies with both the provisions
of the Plan and with the provisions of this paragraph, and the Trustee need make
no further investigation.

         17.      Law Governing. This agreement shall be administered, construed
and enforced according to the laws of the District of Columbia and applicable
Federal law.

         18.      Exclusive Benefit of Participants. Except in the case of a
Qualified Domestic Relations Order as defined in Section 414(p) of the Internal
Revenue Code of 1986, as amended, it shall be impossible at any time prior to
the satisfaction of all liabilities to the Participants for any part of the
Fund, other than such part as is required to pay taxes, administrative expenses
or refund contributions as provided elsewhere herein, to be used for, or
diverted to, purposes other than the exclusive benefit of th8 Participants.

<PAGE>

         19.      Non-alienation of Benefits. Except in the case of a Qualified
Domestic Relations Order as defined in Section 414(p) of the Internal Revenue
Code of 1986, as amended, no rights or claims to any of the monies or other
assets of the Fund shall be assignable, nor shall such rights or claims be
subject to garnishment, attachment, execution or levy of any kind; and any
attempt to transfer, assign or pledge the same shall not be recognized by the
Trustee.

         20.      Distribution. Notwithstanding any other provisions of this
Agreement, the Trustee may condition its delivery, transfer or distribution of
any assets upon the Trustee's receiving assurances satisfactory to it that the
approval of appropriate governmental or other authorities has been secured and
that all notice and other procedures required by applicable law have been
complied with.

         21.      Trustee not Liable for Duties not Assigned Herein. The duties
of the Trustee to the Plan are limited to those assumed by the Trustee by the
terms of this Agreement. The Trustee shall not be deemed by virtue hereof to be
the Administrator or Sponsor of the Plan, and shall not be responsible for
filing reports, returns or disclosures with any government agency except as may
be required of the Trustee under applicable law or regulation.

         22.      Separability. If any provision of this Agreement is found,
held or deemed to be void, unlawful or unenforceable under any applicable
statute or other controlling law, the remainder of this Agreement shall continue
in full force and effect.

         23.      Dealing with the Trustee. No person dealing with the Trustee
will be obliged to see to the application of any property paid or delivered to
the Trustee or to inquire into the expediency or propriety of any transaction or
the Trustee's authority to consummate the same, except as may specifically be
required of such person under ERISA.

         24.      Payment by Mail. If any check in payment of a benefit
hereunder, which had been mailed by regular U.S. mail to the last address of the
payee is returned undelivered, the Trustee shall so notify the Employer and
shall discontinue further payments to such payee until it receives further
instructions from the Employer. The Trustee shall have no duty to locate
participants.

         25.      Signature Authority and Conformity with Plan. The person
executing this agreement on behalf of the Employer certifies thereby that he or
she is duly authorized by the Employer consistent with the terms of the Plan to
do so. The Employer, by executing this Agreement, certifies that the Plan has
been duly adopted, that the provisions hereof are consistent with the terms of
the Plan, that all conditions and limitations in the Plan which would limit the
actions of the Trustee are expressly contained herein, and that the Employer
will promptly notify the Trustee of any amendments made to the Plan.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused the respective duly
authorized officers to execute this Agreement in duplicate and affix their
corporate seals hereto this 29th day of May, 2002.

ATTEST:                                            Employer

/s/ Catherine Bokus                              By: /s/ David C. Benoit
                                                           CFO

ATTEST:                                          Riggs Bank N.A., Trustee

/s/ Suzanna Fouelles                             By: /s/ Richard H. Deuber

                                       12

ATTEST:
ATTEST:<PAGE>

                                                                 EXHIBIT 10.12.2

                  SAVINGS PLAN OF THE CONNECTICUT WATER COMPANY

                              POST-EGTRRA AMENDMENT

                                    ARTICLE I
                                    PREAMBLE

1.1      Adoption and effective date of amendment. This amendment of the plan is
         adopted to reflect certain provisions of the Economic Growth and Tax
         Relief Reconciliation Act of 2001 ("EGTRRA"), the Job Creation and
         Worker Assistance Act of 2002, and other IRS guidance. This amendment
         is intended as good faith compliance with the requirements of EGTRRA
         and is to be construed in accordance with EGTRRA and guidance issued
         thereunder. Except as otherwise provided, this amendment shall be
         effective as of the first day of the first plan year beginning after
         December 31, 2001.

1.2      Superession of inconsistent provisions. This amendment shall supersede
         the provisions of the plan to the extent those provisions are
         inconsistent with the provisions of this amendment.

                                   ARTICLE II
                          ADOPTION AGREEMENT ELECTIONS

         THE QUESTIONS IN THIS ARTICLE II ONLY NEED TO BE COMPLETED IN ORDER TO
         OVERRIDE THE DEFAULT PROVISIONS SET FORTH BELOW. IF ALL OF THE DEFAULT
         PROVISIONS WILL APPLY, THEN THESE QUESTIONS SHOULD BE SKIPPED.

         UNLESS THE EMPLOYER ELECTS OTHERWISE IN THIS ARTICLE II, THE FOLLOWING
DEFAULTS APPLY:

         1.       IF CATCH-UP CONTRIBUTIONS ARE PERMITTED, THEN THE CATCH-UP
                  CONTRIBUTIONS ARE TREATED LIKE ANY OTHER ELECTIVE DEFERRALS
                  FOR PURPOSES OF DETERMINING MATCHING CONTRIBUTIONS UNDER THE
                  PLAN.

         2.       FOR PLANS SUBJECT TO THE QUALIFIED JOINT AND SURVIVOR ANNUITY
                  RULES, ROLLOVERS ARE AUTOMATICALLY EXCLUDED IN DETERMINING
                  WHETHER THE $5,000 THRESHOLD HAS BEEN EXCEEDED FOR AUTOMATIC
                  CASH-OUTS (IF THE PLAN PROVIDES FOR AUTOMATIC CASH-OUTS). THIS
                  IS APPLIED TO ALL PARTICIPANTS REGARDLESS OF WHEN THE
                  DISTRIBUTABLE EVENT OCCURRED.

         3.       AMOUNTS THAT ARE "DEEMED 125 COMPENSATION" ARE NOT INCLUDED IN
                  THE DEFINITION OF COMPENSATION.

2.1      EXCLUSION OF ROLLOVERS IN APPLICATION OF INVOLUNTARY CASH-OUT
         PROVISIONS. If the plan is subject to the joint and survivor annuity
         rules and includes involuntary cash-out provisions, then unless one of
         the options below is elected, effective for distributions made after
         December 31. 2001, rollover contributions will be excluded in
         determining the value of a participant's nonforfeitable account balance
         for purposes of the plan's involuntary cash-out roles.

         a.  [X]  Rollover contributions will not be excluded.

         b.       Rollover contributions will be excluded only with respect to
                  distributions made after __________ (Enter a date no earlier
                  than December 31, 2001).

         c.       Rollover contributions will only be excluded with respect to
                  participants who separated from service after__________ (Enter
                  a date. The date may be earlier than December 31, 2001.)

<PAGE>

2.2      CATCH-UP CONTRIBUTIONS (FOR 401(K) PROFIT SHARING PLANS ONLY): The plan
         permits catch-up contributions effective for calendar years beginning
         after December 31, 2001, (Article V) unless otherwise elected below.

         a.       The plan does not permit catch-up contributions to be made

         b.  [X]  Catch-up contributions are permitted effective as of: 06/01/02
                  (enter a date no earlier than January 1, 2002).

         AND, catch-up contributions will be taken into account in applying any
         matching contribution under the Plan unless otherwise elected below.

         c.       Catch-up contributions will not be taken into account in
                  applying any matching contribution under the Plan.

2.3      DEEMED 125 COMPENSATION. Article VI of this amendment shall not apply
         unless otherwise elected below.

         [ ] Article VI of this amendment (Deemed 125 Compensation) shall apply
         effective as of Plan Years and Limitation Years beginning on or after
         ____________ (insert the later of January 1, 1998, or the first day of
         the first plan year the Plan used this definition).

<PAGE>

                              POST-EGTRRA AMENDMENT

<PAGE>

                                   ARTICLE III
                              INVOLUNTARY CASH-OUTS

3.1      Applicability and effective date. If the plan is subject to the
         qualified joint and survivor annuity roles and provides for involuntary
         cash-outs of amounts less than $5,000, then unless otherwise elected in
         Section 2.1 of this amendment, this Article shall apply for
         distributions made after December 31, 2001, and shall apply to all
         participants.

3.2      Rollovers disregarded in determining value of account balance for
         involuntary distributions. For purposes of the Sections of the plan
         that provide for the involuntary distribution of vested accrued
         benefits of $5,000 or less, the value of a participant's nonforfeitable
         account balance shall be determined without regard to that portion of
         the account balance that is attributable to rollover contributions (and
         earnings allocable thereto) within the meaning of Sections 402(c),
         403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(l6) of the Code. If
         the value of the participant's nonforfeitable account balance as so
         determined is $5,000 or less, then the plan shall immediately
         distribute the participant's entire nonforfeitable account balance.

                                   ARTICLE IV
                             HARDSHIP DISTRIBUTIONS

Reduction of Section 402(c) of the Code following hardship distribution. If the
plan provides for hardship distributions upon satisfaction of the safe harbor
(deemed) standards as set forth in Treas. Reg. Section l.401(k)-l(d)(2)(iv),
then effective as of the date the elective deferral suspension period is reduced
from 12 months to 6 months pursuant to E.GTRRA, there shall be no reduction in
the maximum amount of elective deferrals that a Participant may make pursuant to
Section 402(g) of the Code solely because of a hardship distribution made by
this plan or any other plan of the Employer.

                                    ARTICLE V
                             CATCH-UP CONTRIBUTIONS

Catch-up Contributions. Unless otherwise elected in Section 2.2 of this
amendment, effective for calendar years beginning after December 31, 2001, all
employees who are eligible to make elective deferrals under this plan and who
have attained age 50 before the close of the calendar year shall be eligible to
make catch-up contributions in accordance with, and subject to the limitations
of, Section 4 14(v) of the Code. Such catch-up contributions shall not be taken
into account for purposes of the provisions of the plan implementing the
required limitations of Sections 402(g) and 415 of the Code. The plan shall not
be treated as failing to satisfy the provisions of the plan implementing the
requirements of Sections 401(k)(3), 401(k)(11), 401 (k)(12), 410(b), or 416 of
the Code, as applicable, by reason of the making of such catch-up contributions.

If elected in Section 2.2, catch-up contributions shall not be treated as
elective deferrals for purposes of applying any Employer matching contributions
under the plan.

                                   ARTICLE VI
                             DEEMED 125 COMPENSATION

If elected, this Article shall apply as of the effective date specified in
Section 2.3 of this amendment. For purposes of any definition of compensation
under this Plan that includes a reference to amounts under Section 125 of the
Code, amounts under Section 125 of the Code include any amounts not available to
a Participant in cash in lieu of group health coverage because the Participant
is unable to certify that he or she has other health coverage. An amount will be
treated as an amount under Section 125 of the Code only if the Employer does not
request or collect information regarding the Participant's other health coverage
as part of the enrollment process for the health plan.

This amendment has been executed this 17th day of December 2003.

Name of Plan:Savings Plan of The Connecticut Water Company

Name of Employer. Connecticut Water

By: /s/ Maureen P. Westbrook
    ------------------------
    Employer

<PAGE>

                            401(a)(9) MODEL AMENDMENT

<PAGE>

                  SAVINGS PLAN OF THE CONNECTICUT WATER COMPANY

                   MINIMUM DISTRIBUTION REQUIREMENTS AMENDMENT

                                    ARTICLE I
                                  GENERAL RULES

1.1      Effective Date. Unless a later effective date is specified in Section
         6.1 of this Amendment, the provisions of this Amendment will apply for
         purposes of determining required minimum distributions for calendar
         years beginning with the 2002 calendar year.

1.2      Coordination with Minimum Distribution Requirements Previously in
         Effect. If the effective date of this Amendment is earlier than
         calendar years beginning with the 2003 calendar year, required minimum
         distributions for 2002 under this Amendment will be determined as
         follows. If the total amount of 2002 required minimum distributions
         under the Plan made to the distributee prior to the effective date of
         this Amendment equals or exceeds the required minimum distributions
         determined under this Amendment, then no additional distributions will
         be required to be made for 2002 on or after such date to the
         distributee. If the total amount of 2002 required minimum distributions
         under the Plan made to the distributee prior to the effective date of
         this Amendment is less than the amount determined under this Amendment,
         then required minimum distributions for 2002 on and after such date
         will be determined so that the total amount of required minimum
         distributions for 2002 made to the distributee will be the amount
         determined under this Amendment.

1.3      Precedence. The requirements of this Amendment will take precedence
         over any inconsistent provisions of the Plan.

1.4      Requirements of Treasury Regulations Incorporated. All distributions
         required under this Amendment will be determined and made in accordance
         with the Treasury regulations under Section 401(a)(9) of the Internal
         Revenue Code.

1.5      TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions
         of this Amendment, distributions may be made under a designation made
         before January 1, 1984, in accordance with Section 242(b)(2) of the Tax
         Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the
         Plan that relate to Section 242(b)(2) of TEFRA.

1.6      Adoption by prototype sponsor. Except as otherwise provided herein,
         pursuant to Section 5.01 of Revenue Procedure 2000-20, the sponsoring
         organization hereby adopts this amendment on behalf of all adopting
         employers.

                                   ARTICLE II
                         TIME AND MANNER OF DISTRIBUTION

2.1      Required Beginning Date. The Participant's entire interest will be
         distributed, or begin to be distributed, to the Participant no later
         than the Participant's required beginning date.

2.2      Death of Participant Before Distributions Begin. If the Participant
         dies before distributions begin, the Participant's entire interest will
         be distributed, or begin to be distributed, no later than as follows:

         (a) If the Participants surviving spouse is the Participant's sole
         designated beneficiary, then, except as provided in Article VI,
         distributions to the surviving spouse will begin by December 31 of the
         calendar year immediately following the calendar year in which the
         Participant died, or by December 31 of the calendar year in which the
         Participant would have attained age 70-1/2, if later.

         (b) If the Participant's surviving spouse is not the Participant's sole
         designated beneficiary, then, except as provided in Article VI,
         distributions to the designated beneficiary will begin by December 31
         of the calendar year immediately following the calendar year in which
         the Participant died.

<PAGE>

         (c) If there is no designated beneficiary as of September 30 of the
         year following the year of the Participant's death, the Participant's
         entire interest will be distributed by December 31 of the calendar year
         containing the fifth anniversary of the Participants death.

         (d) If the Participant's surviving spouse is the Participant's sole
         designated beneficiary and the surviving spouse dies after the
         Participant but before distributions to the surviving spouse begin,
         this Section 2.2, other than Section 2.2(a), will apply as if the
         surviving spouse were the Participant.

         For purposes of this Section 2.2 and Article IV, unless Section 2.2(d)
         applies, distributions are considered to begin on the Participants
         required beginning date. If Section 2.2(d) applies, distributions are
         considered to begin on the date distributions are required to begin to
         the surviving spouse under Section 2.2(a). If distributions under an
         annuity purchased from an insurance company irrevocably commence to the
         Participant before the Participants required beginning date (or to the
         Participant's surviving spouse before the date distributions are
         required to begin to the surviving spouse under Section 2.2(a)), the
         date distributions are considered to begin is the date distributions
         actually commence.

2.3      Forms of Distribution. Unless the Participant's interest is distributed
         in the form of an annuity purchased from an insurance company or in a
         single sum on or before the required beginning date, as of the first
         distribution calendar year distributions will be made in accordance
         with Articles III and IV of this Amendment. If the Participants
         interest is distributed in the form of an annuity purchased from an
         insurance company, distributions thereunder will be made in accordance
         with the requirements of Section 401(a)(9) of the Code and the Treasury
         regulations.

                                   ARTICLE III
             REQUIRED MINIMUM DISTRIBUTIONS DURING PARTICIPANT'S LIFETIME

3.1      Amount of Required Minimum Distribution For Each Distribution Calendar
         Year. During the Participant's lifetime, the minimum amount that will
         be distributed for each distribution calendar year is the lesser of:

         (a) the quotient obtained by dividing the Participant's account balance
         by the distribution period in the Uniform Lifetime Table set forth in
         Section l.40l(a)(9)-9 of the Treasury regulations, using the
         Participant's age as of the Participant's birthday in the distribution
         calendar year; or

         (b) if the Participant's sole designated beneficiary for the
         distribution calendar year is the Participant's spouse, the quotient
         obtained by dividing the Participant's account balance by the number in
         the Joint and Last Survivor Table set forth in Section 1.401 (a)(9)-9
         of the Treasury regulations, using the Participant's and spouse's
         attained ages as of the Participant's and spouse's birthdays in the
         distribution calendar year.

3.2      Lifetime Required Minimum Distributions Continue Through Year of
         Participant's Death. Required minimum distributions will be determined
         under this Article 3 beginning with the first distribution calendar
         year and up to and including the distribution calendar year that
         includes the Participant's date of death.

                                   ARTICLE IV
            REQUIRED MINIMUM DISTRIBUTIONS AFTER PARTICIPANT'S DEATH

4.1      Death On or After Date Distributions Begin.

         (a) Participant Survived by Designated Beneficiary. If the Participant
         dies on or after the date distributions begin and there is a designated
         beneficiary, the minimum amount that will be distributed for each
         distribution calendar year after the year of the Participant's death is
         the quotient obtained by dividing the Participant's account balance by
         the longer of the remaining life expectancy of the Participant or the
         remaining life expectancy of the Participant's designated beneficiary,
         determined as follows:

<PAGE>

                  (1) The Participant's remaining life expectancy is calculated
                  using the age of the Participant in the year of death, reduced
                  by one for each subsequent year.

                  (2) If the Participant's surviving spouse is the Participant's
                  sole designated beneficiary, the remaining life expectancy of
                  the surviving spouse is calculated for each distribution
                  calendar year after the year of the Participant's death using
                  the surviving spouse's age as of the spouse's birthday in that
                  year. For distribution calendar years after the year of the
                  surviving spouse's death, the remaining life expectancy of the
                  surviving spouse is calculated using the age of the surviving
                  spouse as of the spouse's birthday in the calendar year of the
                  spouse's death, reduced by one for each subsequent calendar
                  year.

                  (3) If the Participant's surviving spouse is not the
                  Participant's sole designated beneficiary, the designated
                  beneficiary's remaining life expectancy is calculated using
                  the age of the beneficiary in the year following the year of
                  the Participant's death, reduced by one for each subsequent
                  year,

         (b) No Designated Beneficiary. If the Participant dies on or after the
         date distributions begin and there is no designated beneficiary as of
         September 30 of the year after the year of the Participant's death, the
         minimum amount that will be distributed for each distribution calendar
         year after the year of the Participant's death is the quotient obtained
         by dividing the Participant's account balance by the Participant's
         remaining life expectancy calculated using the age of the Participant
         in the year of death, reduced by one for each subsequent year.

4.2      Death Before Date Distributions Begin.

         (a) Participant Survived by Designated Beneficiary. Except as provided
         in Article VI, if the Participant dies before the date distributions
         begin and there is a designated beneficiary, the minimum amount that
         will be distributed for each distribution calendar year after the year
         of the Participant's death is the quotient obtained by dividing the
         Participant's account balance by the remaining life expectancy of the
         Participant's designated beneficiary, determined as provided in Section
         4.1.

         (b) No Designated Beneficiary. If the Participant dies before the date
         distributions begin and there is no designated beneficiary as of
         September 30 of the year following the year of the Participant's death,
         distribution of the Participant's entire interest will be completed by
         December 31 of the calendar year containing the fifth anniversary of
         the Participant's death.

         (c) Death of Surviving Spouse Before Distributions to Surviving Spouse
         Are Required to Begin. If the Participant dies before the date
         distributions begin, the Participant's surviving spouse is the
         Participant's sole designated beneficiary, and the surviving spouse
         dies before distributions are required to begin to the surviving spouse
         under Section 2.2(a), this Section 4.2 will apply as if the surviving
         spouse were the Participant.

                                    ARTICLE V
                                   DEFINITIONS

5.1      Designated beneficiary. The individual who is designated as the
         Beneficiary under the Plan and is the designated beneficiary under
         Section 401(a)(9) of the Internal Revenue Code mid Section
         1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

5.2      Distribution calendar year. A calendar year for which a minimum
         distribution is required. For distributions beginning before the
         Participant's death, the first distribution calendar year is the
         calendar year immediately preceding the calendar year which contains
         the Participant's required beginning date. For distributions beginning
         after the Participant's death, the first distribution calendar year is
         the calendar year in which distributions are required to begin under
         Section 2.2. The required minimum distribution for the Participant's
         first distribution calendar year will be made on or before the
         Participant's required beginning date. The required minimum
         distribution for other distribution calendar years, including the
         required minimum distribution for the distribution calendar year in
         which the Participant's required beginning date occurs, will be made on
         or before December 31 of that distribution calendar year.
<PAGE>

5.3      Life expectancy. Life expectancy as computed by use of the Single Life
         Table in Section 1.401 (a)(9)-9 of the Treasury regulations.

5.4      Participant's account balance. The account balance as of the last
         valuation date in the calendar year immediately preceding the
         distribution calendar year (valuation calendar year) increased by the
         amount of any contributions made and allocated or forfeitures allocated
         to the account balance as of dates in the valuation calendar year after
         the valuation date and decreased by distributions made in the valuation
         calendar year after the valuation date. The account balance for the
         valuation calendar year Includes any amounts rolled over or transferred
         to the Plan either in the valuation calendar year or in the
         distribution calendar year if distributed or transferred in the
         valuation calendar year.

5.5      Required beginning date. The date specified in the Plan when
         distributions under Section 401(a)(9) of the Internal Revenue Code are
         required to begin.

                                   ARTICLE VI
                          ADOPTION AGREEMENT ELECTIONS

         THE QUESTIONS IN THIS ARTICLE VI ONLY NEED TO BE COMPLETED IN ORDER TO
         OVERRIDE THE DEFAULT PROVISIONS SET FORTH BELOW. IF ALL OF THE DEFAULT
         PROVISIONS WILL APPLY, THEN THESE QUESTIONS SHOULD BE SKIPPED.

         UNLESS THE EMPLOYER ELECTS OTHERWISE III THIS ARTICLE VI, THE FOLLOWING
         DEFAULTS APPLY:

         1) THE MINIMUM DISTRIBUTION REQUIREMENTS ARE EFFECTIVE FOR DISTRIBUTION
         CALENDAR YEARS BEGINNING WITH THE 2002 CALENDAR YEAR UNLESS A LATER
         DATE IS SPECIFIED IN SECTION 6.1 OF THIS AMENDMENT.

         2) PARTICIPANTS OR BENEFICIARIES MAY ELECT ON AN INDIVIDUAL BASIS
         WHETHER THE 5-YEAR RULE OR THE LIFE EXPECTANCY RULE IN THE PLAN APPLIES
         TO DISTRIBUTIONS AFTER THE DEATH OF A PARTICIPANT WHO HAS A DESIGNATED
         BENEFICIARY.

6.1      EFFECTIVE DATE OF PLAN AMENDMENT FOR SECTION 401(A)(9) FINAL AND
         TEMPORARY TREASURY REGULATIONS.

         [ ] This Amendment applies for purposes of determining required minimum
         distributions for distribution calendar years beginning with the 2003
         calendar year, as well as required minimum distributions for the 2002
         distribution calendar year that are made on or after ____________
         (leave blank if this Amendment does not apply to any minimum
         distributions for the 2002 distribution calendar year).

6.2      ELECTION TO NOT PERMIT PARTICIPANTS OR BENEFICIARIES TO ELECT 5-YEAR
         RULE.

         Unless elected below, Participants or beneficiaries may elect on an
         individual basis whether the S-year rule or the life expectancy rule in
         Sections 2.2 and 4.2 of this Amendment applies to distributions after
         the death of a Participant who has a designated beneficiary. The
         election must be made no later than the earlier of September 30 of the
         calendar year in which distribution would be required to begin under
         Section 2.2 of this Amendment, or by September 30 of the calendar year
         which contains the fifth anniversary of the Participant's (or, if
         applicable, surviving spouse's) death. If neither the Participant nor
         beneficiary makes an election under this paragraph, distributions will
         be made in accordance with Sections 2.2 and 4.2 of this Amendment and,
         if applicable, the elections in Section 6.3 of this Amendment below.

         ( ) The provision set forth above in this Section 6.2 shall not apply.
         Rather, Sections 2.2 and 4.2 of this Amendment shall apply except as
         elected in Section 6.3 of this Amendment below.

<PAGE>

6.3      ELECTION TO APPLY 5-YEAR RULE TO DISTRIBUTIONS TO DESIGNATED
         BENEFICIARIES.

         [ ] If the Participant dies before distributions begin and there is a
         designated beneficiary, distribution to the designated beneficiary is
         not required to begin by the date specified in the Plan, but the
         Participant's entire interest will be distributed to the designated
         beneficiary by December 31 of the calendar year containing the fifth
         anniversary of the Participant's death. If the Participant's surviving
         spouse is the Participant's sole designated beneficiary and the
         surviving spouse dies after the Participant but before distributions to
         either the Participant or the surviving spouse begin, this election
         will apply as if the surviving spouse were the Participant.

         If the above is elected, then this election will apply to:

         [ ] All distributions.

         [ ] The following distributions: _____________________________________

6.4      ELECTION TO ALLOW DESIGNATED BENEFICIARY RECEIVING DISTRIBUTIONS UNDER
         5-YEAR RULE TO ELECT LIFE EXPECTANCY DISTRIBUTIONS.

         [ ] A designated beneficiary who is receiving payments under the 5-year
         rule may make a new election to receive payments under the life
         expectancy rule until December 31, 2003, provided that all amounts that
         would have been required to be distributed under the life expectancy
         rule for all distribution calendar years before 2004 are distributed by
         the earlier of December 31, 2003 or the end of the 5-year period.

     Except with respect to any election made by the employer in Article VI,
     this amendment is hereby adopted by the prototype sponsoring organization
     on behalf of all adopting employers on

Sponsor Name: ____________________________________

By: ______________________________________

NOTE: THE EMPLOYER ONLY NEEDS TO EXECUTE THIS AMENDMENT IF AN ELECTION HAS BEEN
MADE IN ARTICLE VI OF THIS AMENDMENT.

This amendment has been executed this 17th day of December, 2003.

Name of Plan:            Savings Plan of the Connecticut Water Company
Name of Employer:        Connecticut Water
By:                      /s/   Maureen P. Westbrook____________________
                         EMPLOYER

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