Document:

Ex-10.3 Paying Agency Agreement dated August 4, 20

 

EXHIBIT 10.3

CONSOLIDATED WATER CO. LTD.

PAYING AGENCY AGREEMENT

US$15,771,997.16

COMPRISING

US$15,771,997.16 Fixed Rate Bonds 2006 — 2016

P.O. Box 1114 GT

Regatta Office Park

Windward Three, 4th Floor

West Bay Road

Grand Cayman, Cayman Islands

DATE:

TO: SCOTIATRUST AND MERCHANT BANK TRINIDAD AND TOBAGO LIMITED

Dear Sirs,

     CONSOLIDATED WATER CO. LTD. (“the Company”) is issuing Bonds in the aggregate value of not
more than US$15,771,997.16 comprising Fixed Rate Bonds 2006-2016 (the “Bonds”). These Bonds will be
constituted and secured by a Trust Deed of even date herewith made between the Company and DEXTRA
BANK & TRUST CO. LTD. (“the Trustee”).

     The Company hereby appoints SCOTIATRUST AND MERCHANT BANK TRINIDAD AND TOBAGO LIMITED the
Paying Agent (“the Paying Agent”) upon the terms and conditions set out below, for the payment of
principal and interest in respect of the Bonds.

     The Paying Agent appointed under the terms and conditions of this Agreement shall also
undertake the duties and responsibilities of Registrar on behalf of the Company in respect of the
Bonds. These duties shall include:

	 	(i)	 	maintenance of the Register of Bondholders;
	 
	 	(ii)	 	dealing with transfers of Bonds and other registrations;
	 
	 	(iii)	 	providing information required by the Company and the Trustee from time to
time relative to the register of Bondholders.

     The expression “Paying Agent” and “Specified Office” as used herein shall be deemed to mean
and include the Paying Agent and the offices respectively specified in the Trust Deed (as
hereinafter defined) or such other Paying Agents or Specified Offices from time to time duly
appointed by the Company in accordance with Condition 9.00 of the Bonds. The Bonds will be issued
in registered transferable form in accordance with Condition 2.00 of the Bonds. The Bonds are to be
issued substantially in the form set out in Part A of the First Schedule to the Trust Deed.
Expressions used

 

 

herein shall, unless the context otherwise requires, have the meanings ascribed thereto in the
Trust Deed and the Schedules thereto.

	1.	(A) 	 	At least one business day (being a day on which banks are open for business in Trinidad
and Tobago) before the Due Date, the Company will deliver its cheque or wire transfer the
funds to the Paying Agent for the full amount in United States Dollars of the money payable on
such Due Date in respect of all such Bonds.

	 	(B)	 	In the event that, upon the business day before the Due Date the Company does not
have available for payment and has not delivered its cheque or wire transferred the funds
referred to in (A) above for the full amount of the money payable on such Due Date in
respect of all such Bonds, the Company will give notice by telephone to the Trustee for
the time being for the Bondholders (the “Trustee”) and to the Paying Agent that it does
not have such money available and has not delivered such cheque.
	 
	 	(C)	 	The Rate of Interest from time to time payable in respect of the Fixed Rate Bonds
2006-2016 is 5.95% per annum.
	 
	 	(D)	 	The Paying Agent shall at all times keep at its registered office (or at such other
place as the Trustee may agree) a register showing the nominal amount of the Bonds and the
date of issue and of all subsequent transfers and changes of ownership thereof and the
names and addresses of the Bondholders and the persons deriving title under them and of
their repayment, purchase and cancellation and of all replacement Certificates issued in
substitution for mutilated, defaced, lost, stolen or destroyed Certificates. The Trustee,
the Company and the Bondholders or any of them and any person authorised by any such
person may at all reasonable times during office hours, inspect the Register and take
copies of or extracts from it. If the Trustee requires the convening of a meeting or the
giving of any notice to the Bondholders, the Paying Agent shall promptly furnish the
Trustee free of charge with such copies of or extracts from the Register as it shall
require. The Register may be closed by the Company for such periods and at such times (not
exceeding in the whole thirty Business Days in any one year) as it may think fit.

	2.	(A) 	 	SUBJECT to the Company having paid the requisite money pursuant to paragraph 1(A) hereof,
the Paying Agent will act as agent of the Company for the Bonds and pay or cause to be paid on
behalf of the Company on and after each Due Date the amounts due to be paid as principal
and/or interest in respect of the Bonds in accordance with the conditions and the terms of the
Trust Deed. All payments made by the Paying Agent hereunder shall be made without charging any
commission or fee to the Bondholders.

	 	(B)	 	At any time after any of the events described in Condition 10.00 of the Bonds has
occurred the Trustee may by notice in writing to the Company and the Paying Agent require:

	 	(i)	 	the Paying Agent to act thereafter as Paying Agent of the
Trustee in relation to payments to be made by or on behalf of the Trustee under
the provisions of the Trust Deed mutatis mutandis on the terms provided herein
(save that the Trustee’s liability under any of the provisions hereof for the
indemnification of the Paying Agent shall be limited to the amounts for the
time being held by the Trustee upon the trusts of the Trust Deed and available
for distribution to holders of Bonds) and thereafter to hold all Bonds and all
sums documents and records held by them in respect of the Bonds and interest
thereon on behalf of the Trustee; and/or

2

 

	 	(ii)	 	the Paying Agent to deliver up all Bonds and all sums documents
and records held by them in respect of Bonds and interest thereon to the
Trustee or as the Trustee shall direct in such notice provided that such notice
shall be deemed not to apply to any documents or records which the relative
Paying Agent is obliged not to release by any law or regulation.

	 	 	 	The Paying Agent shall treat a certificate of the Trustee that any of the events
described in the said Condition 10.00 has occurred as conclusive evidence of that
fact.

3. ALL Bonds which are repaid or purchased by or on behalf of the Company and required to be
cancelled shall be cancelled forthwith by the Paying Agent. The Paying Agent shall give all
relevant details and forward the cancelled Bonds to the Company which shall as soon as reasonably
possible after the date of such repayment or purchase (as the case may be) furnish the Trustee with
a certificate or certificates signed by a duly authorised officer stating the amounts paid in
respect of such Bonds so repaid or purchased or paid and so cancelled, and the serial numbers of
such Bonds.

	4.	(A) 	 	The Company will pay to the Paying Agent a fee of US$2,500.00 per annum payable annually
in advance for its services under this Agreement.

	 	(B)	 	Additionally, the Company will be responsible for all out of pocket expenses
(including computer costs, stationery printing, postages, insurances, issuing duplicates
etc.) for which the Paying Agent shall be reimbursed at the end of each quarter in which
such expenses have been incurred.

5. The Company will indemnify and hold harmless the Paying Agent against any losses, liabilities,
costs, claims, actions or demands which the Paying Agent may incur or which may be made against the
Paying Agent as a result of or in connection with its appointment or the exercise of its power,
discretions, authorities and duties under this Agreement (including reasonable fees and expenses of
legal advisers) as well as the costs and expenses of defending any claim, action or demand except
such as may result from its own willful default, negligence or bad faith or that of its officers or
employees.

6. WITHOUT PREJUDICE to the provisions of paragraph 2 (B) hereof in acting hereunder and in
connection with the Bonds the Paying Agent shall act solely as agent of the Company and will not
thereby assume any obligations towards or relationship of agency or trust for any of the
Bondholders.

7. EXCEPT as ordered by a court of competent jurisdiction or as required by law, the Paying Agent
shall (notwithstanding any notice to the contrary) be entitled to treat the registered holder of
any Bonds as the absolute owner thereof.

8. The Paying Agent will procure that, so long as any of the Bonds are outstanding, copies of the
Trust Deed, and this Agreement together with copies of the latest audited accounts of the Company
as produced by the Company will be available for inspection by Bondholders at its office specified
herein during normal business hours.

	9.	(A) 	 	The Company with the prior written approval of the Trustee may terminate the appointment
of the Paying Agent at any time by giving to the Trustee, and to such Paying Agent, at least
thirty (30) days’ written notice to that effect provided always that so long as any of the
Bonds remains outstanding (i) no such notice shall expire between thirty (30) days prior to a
Payment Date and fifteen (15) days after a Payment Date; and (ii) the Company shall procure
that there will at all times be at least one Paying Agent with a specified office in Trinidad
and Tobago.

	 	(B)	 	The Paying Agent may resign its appointment hereunder at any time by giving to the
Company and the Trustee at least thirty (30) days’ written

3

 

	 	 	 	notice to that effect and the Company shall thereupon forthwith appoint a
replacement provided that so long as any of the Bonds remains outstanding no such
notice shall expire between thirty (30) days prior to a Payment Date and fifteen
(15) days after a Payment Date. In the event that the Company fails to appoint a
new Paying Agent within the notice period given by the Paying Agent as provided
above then upon expiration of the notice period the Paying Agent shall continue to
hold the office of Paying Agent only to the extent that it be responsible for the
Register of Bondholders, the safe custody of the Bonds and all sums, documents or
records held by it in respect of the Bonds and interest thereon on behalf of the
Trustee and may thereupon appoint a new Paying Agent to take over all of the
responsibilities under this Agreement with immediate effect and shall advise the
Trustee and the Company in writing of such appointment. The new Paying Agent shall
upon such appointment be responsible for and may be requested to indemnify the
Paying Agent against any claims of whatsoever nature that may arise out of the
discharge of the duties under this Agreement by the new Paying Agent and all other
provisions of this Agreement shall be applicable to the new Paying Agent as if the
new Paying Agent was an original signatory to this Agreement.

	 	(C)	 	As soon as practicable, and in any event at least 60 days prior to the effective date
of the resignation or removal of any Paying Agent, the Company shall give, or cause to be
given notice thereof to the Bondholders in accordance with Condition 16.00 of the Bonds.
	 
	 	(D)	 	Before the Paying Agent changes its Specified Office it shall give to the Company and
the Trustee not less than 65 days’ prior written notice to that effect giving the address
of the changed Specified Office. The Company shall (unless the appointment of the relative
Paying Agent is to terminate pursuant to sub-paragraph (A) or (B) above on or prior to the
date of such change) give to the Bondholders and the Trustee at least 14 days’ notice of
such change and of the address of the changed Specified Office.
	 
	 	(E)	 	The Company shall give notice to the Bondholders in accordance with the said
Condition 16.00 of any appointment of a Paying Agent hereunder within 14 days of such
appointment.

10. The Paying Agent shall be deemed to have notice of, and in so far as the terms of the Trust
Deed affect the duties of the Paying Agent herein, shall not act in a manner inconsistent with the
terms of the Trust Deed including the Conditions of the Bonds.

11. SUBJECT to the Conditions of the Bonds the Paying Agent and any of its respective officers and
employees in its or his individual or any other capacity, may become the owner of, or acquire any
interest in any Bonds with the same rights that it or he would have if it or he were not the Paying
Agent hereunder or an officer or employee thereof, and the Paying Agent may engage or be interested
in any financial or other transaction with the Company, or may act on, or as a depository, trustee
or agent for, any committee or body of Bondholders or other obligations of or lenders to the
Company as freely as if it were not the Paying Agent hereunder.

12. ALL notices hereunder shall be either delivered to the party or parties to which they are
addressed by hand or shall be sent by telecopy, or facsimile. Any notice sent by telecopy,
or facsimile shall be deemed to have been given, made or served at the time of dispatch. All
notices shall be sent to the parties at their respective addresses as follows, or any other
addresses in Trinidad and Tobago or the Cayman Islands of which any of the foregoing shall
have notified the others in writing in accordance with this Agreement.

4

 

	 	 	 	 	 
	COMPANY:

	 	 	 	Consolidated Water Co. Ltd.

P.O. Box 1114 GT

Regatta Office Park

Windward Three, 4th Floor

West Bay Road

Grand Cayman, Cayman Islands

Attention: Mr. Frederick McTaggart

Facsimile: 345-949-2957

	 
	 	 	 	 
	 

	 	And a copy to:
	 	Myers & Alberga, Attorneys-at-Law

P.O. Box 472 GT

Harbour Place

103 South Church Street

Grand Cayman B.W.I.

Attention: Bryan L. Ashenheim Esq.

Facsimile No. 345-949-8171
	 
	 	 	 	 
	THE TRUSTEE:

	 	 	 	Dextra Bank & Trust Co. Ltd.

P.O. Box 2004 GT

Sagicor House

198 North Church Street

Grand Cayman B.W.I.

Attention S. Alexander Wood

Facsimile No. 345-949-2795
	 
	 	 	 	 
	THE PAYING AGENT:

	 	 	 	Scotiatrust and Merchant Bank Trinidad and

Tobago Limited

56-58 Richmond Street

Port of Spain

Trinidad

Attention:

Facsimile: 868-625-4405

13. Neither the Paying Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates shall (a) be liable for any action taken or to be taken by it or
any person under or in connection with this Agreement or any other Transaction Documents or the
transactions contemplated hereby (except for its or such person’s own gross negligence or willful
misconduct), or (b) be responsible in any manner to any person for any recital, statement,
representation or warranty made by the Company or any officer thereof, contained in this Agreement
or in any other Transaction Documents, or in any certificate, report, statement or other document
referred to or provided for in, or received by the Paying Agent under or in connection with this
Agreement, or for the validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or for any failure of the Company or any other party to the Transaction Documents to
perform its obligations hereunder or thereunder. Except as otherwise expressly stated herein or in
any other Transaction Documents, the Paying Agent shall not be under any obligation to any holders
of Bonds to ascertain or to inquire as to the observance and performance of any of the agreements
contained, or conditions of, this Agreement or any other Transaction Documents, or to inspect the
properties, books or records of the Company.

14. The Paying Agent shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or
e-mail message, statement, order or other document or telephone conversation believed by it in good
faith to be genuine and correct and to have been signed, sent or made by the proper person or
persons, and upon advice and statements of legal counsel (including counsel to the Company)
independent accountants and other experts selected by the Paying Agent. The Paying Agent shall be
fully justified in failing or refusing to take any action under this Agreement or any other
Transaction Documents unless it shall first receive such advice or concurrence of the holders of
the Bonds as it deems appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the holders of the Bonds or the Company as the case may be against any and all
liability and expense which may be incurred by it by reason of failing to take, taking or
continuing to take any such action. The Paying Agent shall in all cases be fully

5

 

protected in acting, or in refraining from acting, under this Agreement or any other Transaction
Documents in accordance with a request or consent of the holders of the Bonds (or when expressly
required hereby, all of the holders of the Bonds) and such request and any action taken or failure
to act pursuant thereto shall be binding upon the holders of the Bonds.

15. Any amendment of any provision of this Agreement shall be in writing and signed by the parties.

16. This Agreement may be executed in several counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same agreement.

17. This Paying Agency Agreement contains the entire agreement of the parties with respect to the
subject matter hereof and supersedes all other prior agreements and undertakings, both written and
oral, between the parties with respect to the subject matter hereof.

18. Except as otherwise provided herein, this Paying Agency Agreement and all of the terms and
provisions hereof shall be binding upon and inure to the benefit of the parties and their
respective heirs, executors, administrators, successors, trustees and legal representatives.

19. The provisions of this Agreement shall be governed by and construed in accordance with the Laws
of the Cayman Islands and the Cayman Islands’ courts will have non-exclusive jurisdiction in
connection with any legal action, suit or proceeding arising out of or relating to this Paying
Agency Agreement.

     Please confirm by signing and returning to us the enclosed duplicate of this letter that you
accept the appointment as Paying Agent and Registrar upon the terms and subject to the conditions
set out above, whereupon the same will become a binding agreement as between the Company, the
Trustee and the Paying Agent.

	 	 	 	 	 
	 	Yours faithfully,

For and behalf of Consolidated Water Co.

Ltd.

 	 
	 	/s/ Frederick W. McTaggart
 	 
	 	Director 	 
	 	 	 
	 

     We hereby confirm our acceptance of your appointment of the Paying Agent on the above terms
and conditions.

	 	 	 	 	 
	 	For and on behalf of Scotiatrust and

Merchant Bank Trinidad and Tobago Limited

 	 
	 	/s/ Richard P. Young
 	 
	 	Director 	 
	 	 	 
	 
	 	For and on behalf of Dextra Bank & Trust

Co. Ltd.

 	 
	 	/s/ Alex Wood
 	 
	 	Director 	 
	 	 	 
	 

6Ex-10.4 Guarantee dated August 4, 2006

 

EXHIBIT 10.4

 

 

 

GUARANTEE

by

CAYMAN WATER COMPANY LIMITED

IN FAVOUR OF

DEXTRA BANK & TRUST CO. LTD.

 

Dated the 4th day of August, 2006

 

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1. DEFINITIONS AND INTERPRETATION
	 	 	2	 
	1.1 General Definitions
	 	 	2	 
	 
	 	 	 	 
	SECTION 2. GUARANTEE
	 	 	3	 
	2.1 Guarantor Guaranteed Obligations
	 	 	3	 
	2.2 Continuing Guarantee
	 	 	3	 
	2.3 Payment of Guaranteed Obligations
	 	 	4	 
	2.4 No Set-off
	 	 	4	 
	2.5 Taxes
	 	 	4	 
	2.6 Application of Payments
	 	 	4	 
	 
	 	 	 	 
	SECTION 3. SAVING PROVISIONS
	 	 	4	 
	3.1 Change in Guaranteed Obligations
	 	 	4	 
	3.2 Waiver of Defenses
	 	 	5	 
	3.3 Immediate Recourse
	 	 	5	 
	3.4 Non-Competition
	 	 	5	 
	3.5 Bankruptcy or Liquidation of the Borrower
	 	 	6	 
	3.6 Appropriaton of Moneys
	 	 	6	 
	3.7 Reinstatement
	 	 	6	 
	3.8 Additional Security
	 	 	7	 
	 
	 	 	 	 
	SECTION 4. INDEMNITY
	 	 	7	 
	4.1 Indemnity
	 	 	7	 
	 
	 	 	 	 
	SECTION 5. REPRESENTATIONS AND WARRANTIES
	 	 	7	 
	5.1 Representations and Warranties
	 	 	7	 
	5.2 Trustee’s Reliance
	 	 	8	 
	5.3 Rights and Remedies not Limited
	 	 	8	 
	 
	 	 	 	 
	SECTION 6. COVENANTS
	 	 	8	 
	6.1 Guarantor Covenants
	 	 	8	 
	 
	 	 	 	 
	SECTION 7. MISCELLANEOUS
	 	 	9	 
	7.1 Notices
	 	 	9	 
	7.2 English Language
	 	 	9	 
	7.3 No Waiver; Remedies Cumulative
	 	 	9	 
	7.4 Governing Law and Jurisdiction
	 	 	10	 
	7.5 Submission
	 	 	10	 
	7.6 Judgments and Immunity
	 	 	10	 
	7.7 Benefit of Guarantee
	 	 	11	 
	7.8 Expenses
	 	 	11	 
	7.9 Amendment or Waiver
	 	 	11	 
	7.10 Counterparts
	 	 	11	 
	7.11 Set-off
	 	 	11	 
	7.12 Currency Indemnity
	 	 	11	 

 

 

     THIS
GUARANTEE (“Guarantee”), dated the ___ day of July, 2006, is made as a deed by:

(1) CAYMAN WATER COMPANY LIMITED, a company organized and existing under the laws of the Cayman
Islands (“Guarantor”);

in favour of

(2) DEXTRA BANK & TRUST CO. LTD. of Sagicor House, 198 North Church Street, George Town,
Grand Cayman, Cayman Islands (the “Trustee”).

Defined terms used herein shall have the meanings specified in Section 1.

     WHEREAS:

	A.	 	Consolidated Water Co. Ltd. (the “Borrower”) has entered into a trust deed (the “Trust
Deed”) with the Trustee pursuant to which, inter alia, the Borrower agreed to secure the
repayment of certain bonds (the “Bonds”) issued by it by granting to the Trustee a
debenture and other security.
	 
	B.	 	The Guarantor is a one hundred percent (100%) wholly owned subsidiary of the Borrower.
To better secure the repayment of the Bonds by the Borrower the Trustee requires that the
Guarantor execute this Guarantee and to grant certain other security to the Trustee.
	 
	C.	 	The Guarantor will obtain benefits as a result of the above mentioned Bond issue and,
accordingly, desires to execute and deliver this Guarantee.
	 
	 	 	NOW, THEREFORE, the parties agree as follows:
	 
	 	 	SECTION 1. DEFINITIONS AND INTERPRETATION.
	 
	 	 	1.1 General Definitions.

          (a) Unless the context otherwise requires, capitalized terms used in this Guarantee without
definition have the meanings specified in the Trust Deed.

          (b) In addition, wherever used in this Guarantee, unless the context otherwise requires, the
following terms have the meaning opposite it:

     “Financing Documents” collectively, the Trust Deed and any security documents issued pursuant
or collateral thereto;

     “Guaranteed Obligations” all liabilities and obligations of the Borrower to the Trustee under
or in respect of the Financing Documents, and in any capacity, irrespective of whether such
liabilities and obligations:

	 	(i)	 	are present or future;
	 
	 	(ii)	 	are actual, contingent or otherwise;

 

 

	 	(iii)	 	are at any time ascertained or unascertained;
	 
	 	(v)	 	are owed or incurred as principal, interest, fees, charges, taxes, duties or
other imposts, damages (whether for breach of contract or tort or incurred on any
other ground), losses, costs or expenses, or on any other account; or
	 
	 	(vi)	 	comprise any combination of the above.

     provided that the Guaranteed Obligations shall be limited to the lesser of: (i) the
total amount outstanding under the Financing Documents; and (ii) the maximum amount of
indebtedness and liability of the Borrower that the Guarantor is able to guarantee without causing
the Guarantor to contravene any applicable legislation restricting the giving of guarantees or
which would otherwise render this Guarantee unenforceable.

     SECTION 2. GUARANTEE.

     2.1 Guarantor Guaranteed Obligations.

     The Guarantor irrevocably and absolutely, as principal obligor and not merely as surety,
guarantees and promises to pay, upon demand of the Trustee, the Guaranteed Obligations not paid or
performed by the Borrower when due in the same manner in all respects as the Guaranteed Obligations
are required to be paid or performed by the Borrower.

     2.2 Continuing Guarantee.

     (a) The guarantee and the indemnity of the Guarantor contained in this Guarantee is a
continuing obligation of the Guarantor (and all liabilities to which it applies or may apply under
the terms of this Guarantee shall be conclusively presumed to have been created in reliance on such
guarantee), notwithstanding any settlement of account or the occurrence of any other thing, and
shall remain in full force and effect until:

	 	(i)	 	the Guaranteed Obligations have been fully paid or performed
strictly in accordance with the provisions of the Financing Documents,
regardless of any intermediate payment or discharge in whole or in part; and
	 
	 	(ii)	 	all of the obligations of the Guarantor under this Guarantee
have been fully performed in accordance with this Guarantee.

     (b) The guarantee and the indemnity of the Guarantor contained in this Guarantee shall be
additional, separate and independent obligations of the Guarantor.

     (c) The guarantee and the indemnity of the Guarantor contained in this Guarantee shall survive
the termination of the Financing Documents.

     (d) The Guarantor’s obligations under this Guarantee can be discharged only by performance and
then only to the extent of such performance. Those obligations are not subject to any prior notice
to, demand upon or action against the Borrower or any other Person or to any prior notice to the
Guarantor of any default by the Borrower.

2

 

     2.3 Payment of Guaranteed Obligations.

     The Guarantor shall make payment of the Guaranteed Obligations under Section 2.1 (Guarantor
Guaranteed Obligations) as provided in the relevant Financing Documents.

     2.4 No Set-off.

     All payments which the Guarantor is required to make under this Guarantee shall be without any
set-off, counterclaim or condition.

     2.5 Taxes.

     (a) The Guarantor shall pay or cause to be paid all present and future taxes, duties, fees and
other charges of whatsoever nature (excluding income taxes), if any, now or in the future levied or
imposed by any Governmental Authority or similar body in the jurisdiction in which the Guarantor is
located or out of which a payment is made.

     (b) All payments due under this Guarantee shall be made without deduction for or on account of
any such taxes, duties, fees or other charges.

     (c) If the Guarantor is prevented by operation of Cayman Islands law or otherwise from making
or causing to be made such payments without deduction, the amounts due under this Guarantee shall
be increased to such amount as may be necessary so that the Trustee receives the full amount it
would have received (taking into account any such taxes, duties, fees or other charges payable on
amounts payable by the Guarantor under this subsection) had such payments been made without such
deduction.

     (d) If subsection (c) above applies and the Trustee so requires, the Guarantor shall deliver
to the Trustee official tax receipts evidencing payment (or certified copies of them) within thirty
(30) days of the date of payment.

     2.6 Application of Payments.

     The Trustee may apply any amounts received by it or recovered under:

     (a) any Financing Document; and

     (b) any other document or agreement which is a security for any of the Guaranteed Obligations
and any other moneys,

in such manner as it determines in its absolute discretion in accordance with the Financing
Documents.

     SECTION 3. SAVING PROVISIONS.

     3.1 Change in Guaranteed Obligations.

     The obligations of the Guarantor under this Guarantee shall extend to any change in the
Guaranteed Obligations:

     (a) as a result of any amendment, supplement, renewal or replacement of any Financing Document
or the occurrence of any other thing; and

3

 

     (b) regardless of whether the Guarantor is aware of, has consented to or is given notice of
any alteration, variation, amendment, supplement, renewal or replacement of any Financing Document
or the occurrence of such other thing.

     3.2 Waiver of Defences.

     Except for payment or performance in full of the Guaranteed Obligations, the payment in full
by the Guarantor of its obligations under this Guarantee or otherwise as provided in this
Guarantee, the Guarantor’s obligations under this Guarantee shall not be discharged, impaired or
otherwise adversely affected by any act, omission, circumstance, matter or thing which, but for
this provision, would reduce, release or prejudice any of its obligations under this Guarantee or
which might otherwise constitute a legal or equitable discharge or defence of a surety or a
guarantor, including (whether or not known to the Guarantor or the Borrower):

     (a) any time, waiver, composition, forbearance or concession given to the Borrower or any
other person;

     (b) any assertion of, or failure to assert, or delay in asserting, any right, power or remedy
against the Borrower or any other person, or in respect of any security for the Loans;

     (c) any amplification, amendment (however fundamental), variation or replacement of the
provisions of any Financing Document or of any other agreement or security between the Trustee and
the Borrower;

     (d) any failure of the Borrower or the Guarantor to comply with any requirement of any law,
regulation or order;

     (e) the dissolution, liquidation, reorganization or other alteration of the legal status or
structure of the Borrower or the Guarantor;

     (f) any purported or actual assignment, transfer, novation or disposal of, or granting any
participation in, any of the Bonds to any other party;

     (g) any Financing Document being in whole or in part illegal, void, voidable, avoided,
invalid, unenforceable or otherwise of limited force and effect; or

     (h) any total or partial failure to realize the value of, or any release, discharge, exchange
or substitution of, any security held by the Trustee in respect of the Guaranteed Obligations or
any of them.

     3.3 Immediate Recourse.

     The Guarantor waives any right it may have of first requiring the Trustee (or any trustee,
agent or other person acting on its behalf) to proceed against or enforce any other rights or
security or claim payment from any person before claiming from the Guarantor under this Guarantee.

     3.4 Non-Competition.

     (a) If any amounts have become payable or have been paid by the Guarantor under this
Guarantee, the Guarantor shall not, in respect of such moneys, seek to enforce repayment, obtain
the benefit of any security or exercise any other rights or legal remedies of any kind

4

 

which may accrue to the Guarantor against the Borrower, whether by way of subrogation, offset,
counterclaim or otherwise, in respect of the amount so payable or so paid (or in respect of any
other moneys for the time being due to the Guarantor from the Borrower), if and for so long as any
moneys remain outstanding to the Trustee under the Financing Documents. The Guarantor shall hold
in trust for, and forthwith pay or transfer to, the Trustee any payment or distribution or benefit
of security received by it contrary to this Section 3.4(a).

     (b) Upon the payment and satisfaction in full of all Guaranteed Obligations and provided that
no amounts (actual or contingent) remain outstanding to the Trustee under the Loan Agreement, the
Guarantor, if it has made a payment under this Guarantee, shall be entitled to exercise its rights
of subrogation to its proportion of all relevant rights of the Trustee against the Borrower
pursuant to the Financing Documents. The Trustee shall promptly execute, at the expense of the
Guarantor, an assignment and such other documents in such form as the Guarantor may reasonably
request to transfer such proportion of such rights of the Trustee against the Borrower to the
Guarantor as are required for the Guarantor to obtain the full benefit of such subrogation. The
Guarantor shall enforce such rights directly against the Borrower in its own name and not in the
name of the Trustee.

     3.5 Bankruptcy or Liquidation of the Borrower.

     If the Borrower becomes bankrupt, enters into a composition or makes any arrangement with its
creditors, or is dissolved, liquidated or wound up, the Guarantor shall not claim, rank, prove or
vote as a creditor of the Borrower or its estate in competition with the Trustee in respect of any
amounts owing to the Guarantor by the Borrower on any account whatsoever, but instead shall give
the Trustee the benefit of any such proof and of all amounts to be received in respect of that
proof until all Guaranteed Obligations have been fully paid.

     3.6 Appropriation of Moneys(a).

     Until all of the Guaranteed Obligations have been irrevocably paid in full, the Trustee (or
any trustee, agent or other person acting on its behalf) may refrain from enforcing any other
security or rights held or received by the Trustee (or such trustee, agent or other person) in
respect of the Guaranteed Obligations, or apply and enforce the same in such manner and order as it
sees fit.

     3.7 Reinstatement.

     (a) Where any discharge (whether in respect of the obligations of the Borrower, the Guarantor
or any security for those obligations or otherwise) is made in whole or in part or any arrangement
is made on the faith of any payment, security or other disposition which is avoided or must be
restored on insolvency, liquidation or otherwise without limitation, the liability of the Guarantor
under this Guarantee shall continue or shall be reinstated (as the case may be) as if such
discharge or arrangement had not occurred.

     (b) The Trustee (or any trustee, agent or other person acting on its behalf) may concede or
compromise any claim that any payment, security or other disposition is liable to avoidance or
restoration.

5

 

     3.8 Additional Security.

     This Guarantee is in addition to and is not in any way prejudiced by any collateral or other
security now or hereafter held by the Trustee, nor shall such collateral or other security held by
the Trustee or the liability of any person for all or any part of the Guaranteed Obligations be in
any manner prejudiced or affected by this Guarantee.

     SECTION 4. INDEMNITY.

     4.1 Indemnity.

     The Guarantor agrees as a primary obligor and not merely as a surety, to indemnify and hold
harmless the Trustee from and against any loss, cost or damage incurred by the Trustee as a result
of any obligation of the Guarantor hereunder as guarantor being or becoming void, voidable,
unenforceable or otherwise ineffective against the Guarantor for any reason whatsoever (whether or
not known to the Trustee or any other Person), the amount of such loss being limited to the amount
that the Trustee would have been entitled to recover from the Guarantor as guarantor pursuant to
this Guarantee had such obligations not become void, voidable, unenforceable or otherwise
ineffective against the Guarantor.

     SECTION 5. REPRESENTATIONS AND WARRANTIES.

     5.1 Representations and Warranties.

     The Guarantor represents and warrants to the Trustee that as of the date of this Guarantee:

     (a) it is a company duly incorporated under the laws of the jurisdiction of its incorporation
and has the corporate power to enter into and deliver and to perform its obligations under this
Guarantee;

     (b) the execution and delivery by it of this Guarantee and the performance by it of its
obligations hereunder have been duly authorized;

     (c) this Guarantee constitutes its valid and legally binding obligations;

     (d) neither the execution and delivery by it of this Guarantee nor the performance by it of
its obligations under this Guarantee:

	 	(i)	 	conflicts with or will conflict with or result in any breach of
any of the terms, conditions or provisions of, or violate or constitute a
default or require any consent under, any indenture, mortgage, agreement or
other instrument or arrangement to which it is a party or which binds or
purports to be binding upon it other than the documents referred to in the
InterCreditor Deed (being one of the Financing Documents) as the “bank
Security”; or
	 
	 	(ii)	 	violates or will violate any judgment, decree or order or any
statute, rule or regulation or any of the terms or provisions of its Memorandum
and Articles of Association;

6

 

     (e) all authorizations required for the execution and delivery of this Guarantee by it and the
performance by it of its obligations hereunder have been duly obtained or granted and are in full
force and effect;

     (f) it has not requested or taken any security from the Borrower for any obligation (whether
present or future, actual or contingent) of the Borrower to it; and

     (g) the representations and warranties set out in this Section 5.1 (Representations and
Warranties) will survive the execution of each Financing Document and each Disbursement under the
Financing Documents.

     5.2 Trustee’s Reliance.

     The Guarantor acknowledges that it makes the representations in Section 5.1 (Representations
and Warranties) with the intention of inducing the Trustee to enter into this Guarantee and the
Financing Documents and that the Trustee enters into this Guarantee and the Financing Documents on
the basis of, and in full reliance on, each of such representations.

     5.3 Rights and Remedies not Limited.

     The Trustee’s rights and remedies in relation to any misrepresentation or breach of warranty
on the part of the Guarantor are not prejudiced:

     (a) by any investigation by or on behalf of the Trustee into the affairs of the Guarantor;

     (b) by the execution or the performance of this Guarantee; or

     (c) by any other act or thing which may be done by or on behalf of the Trustee in connection
with this Guarantee and which might, apart from this Section, prejudice such rights or remedies.

     SECTION 6. COVENANTS.

     6.1 Guarantor Covenants.

          The Guarantor shall:

     (a) when requested by the Trustee, do or cause to be done anything which aids the exercise of
any power, right or remedy of the Trustee under this Guarantee including, but not limited to, the
execution of any document or agreement;

     (b) obtain, maintain and renew when necessary all authorizations required under any law or
document or agreement:

	 	(i)	 	to enable it to perform its obligations under this Guarantee;
or
	 
	 	(ii)	 	for the validity or enforceability of the guarantee;

     (c) not take any action which may impair the ability of the Borrower to observe and perform
all of its covenants, agreements and obligations under or pursuant to the Financing Documents;

7

 

     (d) take such action as may be necessary or as the Trustee may reasonably request in order to:

	 	(i)	 	comply with its obligations under this Guarantee; and
	 
	 	(ii)	 	cause the Borrower to the extent possible to take such
corporate action as may be necessary to comply with its respective obligations
under the Financing Documents;

     (e) the Guarantor shall not take any action which would cause any of the representations made
in Section 5.1 (Representations and Warranties) to be untrue at any time during the continuation of
this Guarantee.

     SECTION 7. MISCELLANEOUS.

     7.1 Notices.

     (a) All notices, requests, approvals, consents and other communications provided for hereunder
shall be in writing (including, unless the context expressly otherwise provides, by facsimile
transmission, provided that any matter transmitted by the Guarantor by facsimile (i) shall
be promptly confirmed by a telephone call to the recipient at the number specified on the
applicable signature page hereof, and (ii) shall be followed promptly by a hard copy original
thereof by express courier) and faxed or delivered, to the address or facsimile number specified
for notices on the applicable signature page hereof or to such other address as shall be designated
by such party in a written notice to the other parties hereto.

     (b) All such notices, requests, approvals, consents and communications (i) sent by express
courier will be effective upon delivery to or refusal to accept delivery by the addressee, and (ii)
transmitted by facsimile will be effective when sent and facsimile confirmation received.

     (c) Both parties acknowledge and agree that any agreement of the Trustee to receive certain
notices by telephone and facsimile is solely for the convenience and at the request of the other.
The receiving party shall be entitled to rely on the authority of any Person purporting to be a
Person authorized by the sending party to give such notice and the receiving party shall not have
any liability to the sending party or other Person on account of any action taken or not taken by
the receiving party in reliance upon such telephonic or facsimile notice.

     (d) All notices, requests and other communications hereunder and under the other Financing
Documents shall be in the English language.

     7.2 English Language.

     This Guarantee and all other Financing Documents shall be in the English language. Except as
otherwise agreed by the parties hereto, all documents, certificates, reports or notices to be
delivered or communications to be given or made by any party hereto pursuant to the terms of this
Guarantee or any other Financing Document shall be in the English language.

     7.3 No Waiver; Remedies Cumulative.

     No failure or delay on the part of the Trustee in exercising any right, power or privilege
hereunder or under any other Financing Document and no course of dealing between the

8

 

Guarantor and the Trustee shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder or under any other Financing Document preclude
any other or further exercise thereof or the exercise of any other right, power or privilege
hereunder or thereunder. No notice to or demand on the Guarantor in any case shall entitle the
Guarantor to any other or further notice or demand in similar or other circumstances or constitute
a waiver of the rights of the Trustee to take any other or further action in any circumstances
without notice or demand. All remedies, either under this Guarantee or any other Financing
Document or pursuant to any applicable Law or otherwise afforded to the Trustee shall be cumulative
and not alternative.

     7.4 Governing Law and Jurisdiction.

     THIS GUARANTEE IS GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE CAYMAN ISLANDS.

     7.5 Submission.

     (a) For the exclusive benefit of the Trustee, the Guarantor irrevocably agrees that the courts
of the Cayman Islands are to have jurisdiction to settle any claims or disputes arising under, out
of or in connection with this Guarantee (including without limitation any claim or dispute relating
to the validity, interpretation, performance, termination or enforcement of this Guarantee) and
that accordingly any suit, action or proceedings in that respect (together in this Section 7
referred to as “Proceedings”) may be brought in such courts.

     (b) The Guarantor irrevocably waives and agrees not to raise any objection which it may have
now or hereafter to the laying of the venue of any Proceedings in the courts of the Cayman Islands
and any claim that any such Proceedings have been brought in an inconvenient or inappropriate
forum.

     (c) The Guarantor irrevocably agrees not to take Proceedings in any court of competent
jurisdiction other than the courts of the Cayman Islands, save with respect to any counterclaim
asserted by the Guarantor in the course of proceedings previously commenced by the Trustee.
Nothing contained in this Section 7 shall limit the right of the Trustee to take Proceedings
against the Guarantor in any other court of competent jurisdiction, nor shall the taking of
Proceedings in one or more jurisdictions preclude the taking of Proceedings in any other
jurisdiction, whether concurrently or not.

     7.6 Judgments and Immunity.

     (a) The Guarantor recognizes and acknowledges that this Guarantee constitutes a commercial
transaction and accordingly it acknowledges and agrees that it is not entitled to plead, and hereby
waives to the fullest extent permitted by law any right to claim, sovereign immunity for any
purpose whatsoever, including, but not limited to, any right to plead sovereign immunity in respect
of any Proceedings pursuant to this Guarantee.

     (b) The Guarantor consents generally, in respect of any Proceedings pursuant to this Guarantee
for the purpose of enforcing any order, judgment or award, to the giving of any relief or the
issuing of any process in connection with such order, judgment or award including, without
limitation, the making, enforcement or execution against any property of any order, judgment or
award and to the extent that the Guarantor may be entitled in any jurisdiction to claim for itself
or its property immunity in respect of its obligations under this

9

 

Guarantee from any suit, execution, attachment (whether in aid of execution, before judgment
or otherwise) or legal process or to the extent that in any jurisdiction there may be attributed to
itself or its property such immunity, the Guarantor agrees not to claim and hereby irrevocably
waives such immunity to the fullest extent permitted by the laws of such jurisdiction.

     7.7 Benefit of Guarantee.

     This Guarantee shall be binding upon and inure to the benefit of and be enforceable by the
respective successors and permitted assigns of the parties hereto. The Guarantor may not assign or
otherwise transfer any of its rights under this Guarantee or any of the other Financing Documents.
The benefit of this Guarantee may be freely and unconditionally assigned, transferred or otherwise
disposed of, in whole or in part, by the Trustee to any other person, corporate or otherwise, to
whom the Trustee has assigned all or part of its rights under the Loan Agreement.

     7.8 Expenses.

     The Guarantor shall be liable to pay to the Trustee the costs and expenses incurred by the
Trustee in relation to the enforcement or protection or attempted enforcement or protection of its
rights under this Guarantee, including legal and other professional consultants’ fees on a full
indemnity basis.

     Amendment or Waiver.

     No provision of this Guarantee may be amended, supplemented, modified or waived, except by a
written instrument signed by the Trustee and the Guarantor.

     7.9 Counterparts.

     This Guarantee may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument.

     7.10 Set-off.

     The Guarantor authorizes the Trustee or any of its subsidiaries and affiliates (which shall
not be obliged to exercise this right) to apply any credit balance to which the Guarantor is
entitled on any account of the Guarantor with the Trustee or any of its subsidiaries and affiliates
in satisfaction of any sum which is due and payable from the Guarantor to the Trustee under this
Guarantee and remains unpaid; for this purpose, the Trustee is authorized to purchase with the
monies standing to the credit of any such account such other currencies as may be necessary to
effect such application.

     7.11 Currency Indemnity.

     If any sum due under this Guarantee or any order or judgment given or made in relation to this
Guarantee has to be converted from the currency (the “first currency”) in which the same is payable
under this Guarantee or under such order or judgment into another currency (the “second currency”)
for the purpose of (a) making or filing a claim or proof against the Guarantor, (b) obtaining an
order or judgment in any court or other tribunal or (c) enforcing any order or judgment given or
made in relation to this Guarantee, the Guarantor shall indemnify and hold harmless the Trustee
from and against any loss it suffers or incurs as a

10

 

result of any discrepancy between (i) the rate of exchange used for such purpose to convert the sum
in question from the first currency into the second currency, and (ii) the rate or rates of
exchange at which the Trustee may in the ordinary course of business purchase the first currency
with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of
any such order, judgment, claim or proof.

IN WITNESS WHEREOF, this Guarantee has been executed as a deed by the parties hereto and is

delivered on the date stated at the beginning of this Guarantee.

	 	 	 	 	 	 	 
	SIGNED by the Guarantor in the

	 	 	)	 	 	CAYMAN WATER COMPANY LIMITED
	presence of

	 	 	)	 	 	 
	 

	 	 	)

)	 	 	Frederick W. McTaggart

 

	Donald Miller 
 

Witness

	 	 	)

)

)

)	 	 	Gregory McTaggart
 

	SIGNED by the Trustee in the

	 	 	)	 	 	DEXTRA BANK & TRUST CO. LTD.
	presence of

	 	 	)	 	 	 
	 

	 	 	)

)	 	 	Alex
Wood

 

	 

	 	 	)	 	 	 
	Donald Miller
 

Witness

	 	 	)

)

)	 	 	Alitia Finlayson
 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]