Document:

<PAGE>
                                                                   Exhibit 10.22

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.

                         EXECUTIVE BONUS DEFERRAL PLAN

                               As of October 2003

<PAGE>
                                                                   Exhibit 10.22

                      PLATINUM UNDERWRITERS HOLDINGS, LTD.
                         EXECUTIVE BONUS DEFERRAL PLAN

PREAMBLE

     This Executive Bonus Deferral Plan has been established by the Company for
the purpose of providing an opportunity for selected employees to defer receipt
of all or part of the cash portion of their annual bonus compensation and earn
tax-deferred interest thereon. The Plan constitutes a plan of unfunded deferred
compensation maintained for a select group of management or highly compensated
employees for purposes of ERISA.

SECTION 1. DEFINITION OF TERMS

     The following terms used in the Plan shall have the meanings set forth
below:

          (a)   "Account" means the deferred compensation account maintained for
     each Participant under the Plan.

          (b)   "Beneficiary" means the person or persons who are designated by
     the Participant to receive benefits under the Plan in the event of the
     Participant's death, as provided in Section 5(d) hereof.

          (c)   "Board" means the Board of Directors of the Company.

          (d)   "Cash Bonus" means the pre-tax amount of the cash portion of the
     annual bonus that is otherwise payable to a Participant for a Plan Year
     under the annual incentive plan of the Company, and shall not include any
     portion of an annual bonus that is payable in shares, share units or in any
     form other than cash.

          "Compensation Committee" means the Compensation Committee of the
          Board, or such other committee of members of the Board appointed by
          the Board as Plan Administrator hereunder.

          (e)   "Company" means Platinum Underwriters Holdings, Ltd., a Bermuda
     corporation.

          (f)   "Deferral Percentage" means the percentage a Participant's Cash
     Bonus that is specified by a Participant on his or her Election Form for
     deferral under the Plan.

<PAGE>
          (g)   "Election Form" means the form approved by the Plan
     Administrator and completed by the Participant specifying the terms and
     conditions of an election to defer Cash Bonus compensation under the Plan.

          (h)   "ERISA" means the Employee Retirement Income Security Act of
     1974, as amended.

          (i)   "Participant" means an employee of the Company who is eligible
     to participate in the Plan and who elects to defer all or a portion of his
     Cash Bonus compensation under Section 3 hereof.

          (j)   "Plan" means this Platinum Underwriters Holdings, Ltd. Executive
     Bonus Deferral Plan.

          (k)   "Plan Administrator" means the Compensation Committee of the
     Board or such other Plan Administrator acting in accordance with Section 2
     hereof.

          (l)   "Plan Year" means the calendar year. The first Plan Year shall
     be 2004.

SECTION 2. PLAN ADMINISTRATION

          The Compensation Committee is appointed as Plan Administrator, and
     shall have full authority to administer the Plan, including the
     discretionary authority to interpret and construe all provisions of the
     Plan, to resolve all questions of fact arising under the Plan, and to adopt
     such rules and regulations for administering the Plan as it may deem
     necessary or appropriate. Decisions of the Plan Administrator shall be
     final and binding on all parties. The appropriate officers of the Company
     are authorized to act on behalf of the Plan Administrator for the
     day-to-day administration of the Plan, subject to the authority of the
     Compensation Committee. No member of the Board, the Compensation Committee
     or any officer acting on its behalf shall have any liability for any action
     or determination taken in good faith under the Plan. All expenses of the
     administration of the Plan shall be borne by the Company, and shall not be
     deducted from Participants' Accounts.

SECTION 3. ELIGIBILITY AND PARTICIPATION

          (a)   ELIGIBILITY TO PARTICIPATE.  Any employee of the Company shall
     be eligible to participate in the Plan if the employee: (i) has the title
     of Senior Vice President or higher, (ii) earns a gross base salary of
     $200,000 per annum or greater, and (iii) receives Cash Bonus compensation
     for a Plan Year that is subject to United States federal income tax. The
     Plan Administrator may require an employee to comply with such terms and
     conditions as it may specify in order to be eligible to participate in the
     Plan as the Plan Administrator deems necessary or appropriate for the
     proper conduct and administration of the Plan.

<PAGE>
          (b)   ELECTION TO PARTICIPATE. An eligible employee may file an
     Election Form with the Plan Administrator (or its designee) on or before
     the date specified by the Plan Administrator prior to the Plan Year to
     which the election shall relate, specifying the Deferral Percentage and the
     terms of distribution of the deferral. All such elections are irrevocable,
     and no changes to any Election Form delivered to the Plan Administrator
     shall be permitted for the Plan Year. A Participant must file a new
     Election Form with the Plan Administrator for each Plan Year for which the
     Cash Bonus is deferred, on or before the deadline established by the Plan
     Administrator for such deferral elections. A Participant will be deemed not
     to have elected deferral of the Cash Bonus for a Plan Year if the
     Participant does not file an Election Form with the Plan Administrator on
     or before the deadline established by the Plan Administrator for such
     deferral elections.

SECTION 4.  PARTICIPANT ACCOUNTS

          (a)   ACCOUNTS. An Account shall be maintained for each Participant
     under the Plan.  A Participant's Account shall consist of book entries only
     and shall not constitute a separate cash fund or other asset held in trust
     or as security for the Company's obligation to pay the amount of the
     Account to the Participant. The balance of a Participant's Account shall be
     the sum of deferred compensation credits made to his or her Account,
     adjusted for accrued interest and reduced by the amount of distributions
     under the Plan. A Participant's Account may include sub-accounts as the
     Company considers necessary or advisable for purposes of maintaining a
     proper accounting of amounts credited for a Participant under the Plan. A
     Participant shall receive a statement of his or her Account not less
     frequently than following the end of each Plan Year.

          (b)   CREDITING OF DEFERRALS. A Participant who has filed an Election
     Form with the Plan Administrator for the deferral of Cash Bonus
     compensation with respect to a Plan Year shall have the deferred amount
     deducted from the Cash Bonus and credited to his or her Account under the
     Plan at the same time as the Cash Bonus payment would otherwise be paid to
     the Participant during such Plan Year, based on the Deferral Percentage
     specified by the Participant and the amount of the Cash Bonus that is
     otherwise payable to the Participant. The amount so credited shall be
     reduced by the amount that the Plan Administrator determines is required to
     be withheld for Social Security, Medicare and other payroll taxes.

          (c)   INTEREST CREDITING. A Participant's Account shall accrue
     interest from the date of crediting until the most recent practicable date
     prior to the date of distribution under the Plan, based on an interest rate
     specified by the Plan Administrator.  Unless otherwise specified, the
     interest rate shall be equal to the prime commercial lending rate charged
     by Citibank, N.A., as published in The Wall Street Journal at the beginning
     of each calendar quarter of the deferral period, plus one percent (1%).
     The rate shall remain in effect until the beginning

<PAGE>
     of the subsequent calendar quarter, and all Accounts shall be compounded
     on a quarterly basis.

          (d)   VESTING OF ACCOUNTS. All deferred compensation credits and
     interest thereon under a Participant's Account shall be fully vested at all
     times.

SECTION 5. DISTRIBUTION OF BENEFITS

          (a)   DISTRIBUTION DATES. A Participant shall specify on his or her
     Election Form the time at which the deferred Cash Bonus (and earnings
     thereon) for the Plan Year shall be distributed from the Plan. Any
     election by the Participant as to the distribution of the Account shall be
     irrevocable. A Participant may elect, to the extent permitted by the Plan
     Administrator and set forth on the Election Form, that such portion of the
     Account be distributed either:

               (i)      upon termination of employment from the Company; or

               (ii)     the last day of any calendar month following the January
          1 that follows the third anniversary of the date the Election Form is
          filed with the Plan Administrator.

          Notwithstanding any election made by a Participant, a distribution of
          the full Account balance shall be made as soon as practicable
          following the date that Participant's employment with the Company is
          terminated for any reason.

          (b)   HARDSHIP DISTRIBUTIONS. Upon the written request of a
     Participant, the Plan Administrator may permit the Participant to withdraw
     some or all of his or her Account for the purpose of enabling the
     Participant to meet the immediate needs created by a severe financial
     hardship of the Participant resulting from a sudden and unexpected illness
     or accident of the Participant or of a dependent of the Participant, loss
     of the Participant's property due to casualty, or other similar
     extraordinary and unforeseeable circumstances arising as a result of events
     beyond the control of the Participant. The circumstances that will
     constitute a severe financial hardship will depend upon the facts of each
     case, but in any case, payment may not be made to the extent such hardship
     is or may be relieved through:  (i) reimbursement or compensation through
     insurance or otherwise; (ii) liquidation of the Participant's assets, to
     the extent such liquidation of assets would not itself cause a financial
     hardship; or (iii) cessation of deferrals under the Plan.

          (c)   FORM OF DISTRIBUTIONS. All distributions from Participant's
     Accounts shall be made in a cash lump sum as soon as practicable following
     the end of the calendar month in which the Participant becomes entitled to
     a distribution under this Section 5. All such payments shall be subject to
     income tax and other withholdings that the Plan Administrator deems
     necessary or appropriate.

<PAGE>
          (d)   BENEFICIARIES. Any payment required to be made to a Participant
     under the Plan that cannot be made due to the Participant's death shall be
     made to the Participant's Beneficiary, subject to applicable law. Each
     Participant shall have the right to designate a Beneficiary from time to
     time by filing a written notice with the Plan Administrator. In the event a
     Beneficiary does not survive the Participant and no successor Beneficiary
     is selected, or in the event no valid Beneficiary designation has been
     made, the Participant's Beneficiary shall be the Participant's estate.

SECTION 6. UNFUNDED STATUS

     All Accounts and all rights of Participants to benefits under the Plan are
unfunded obligations of the Company. Plan benefits shall be paid from the
general assets of the Company, and Participants shall have the status of an
unsecured general creditor of the Company with respect to all interests under
the Plan. The Plan is a plan of unfunded deferred compensation for purposes of
ERISA. Notwithstanding the foregoing, the Company may, but shall not be
required, to establish a trust or other funding vehicle under the Plan that does
not affect the Plan's status as a Plan of unfunded deferred compensation under
ERISA.

SECTION 7. NONTRANSFERABILITY

     Except for payments of benefits to the Beneficiary of a Participant in
accordance with the terms of the Plan, a Participant's Accounts may not be
transferred, assigned, alienated, pledged, encumbered or subjected to
attachment, garnishment, levy, execution or other legal or equitable process.

SECTION 8. LIMITATION OF RIGHTS

     Nothing in the Plan shall confer upon any Participant the right to continue
to be employed by the Company or to serve in the capacity in which he or she is
employed by the Company. Nothing in the Plan shall be interpreted as creating a
right of a Participant to receive a Cash Bonus or other incentive compensation
from the Company.

SECTION 9. ENFORCEABILITY

     The Plan shall be construed, administered and enforced in accordance with
ERISA, and to the extent not preempted thereby, the laws of the State of New
York. To the extent that any provision of the Plan or portion thereof shall be
invalid or unenforceable, it shall be considered deleted herefrom and the
remainder of such provision and the Plan shall be unaffected and shall continue
in full force and effect.

<PAGE>
SECTION 10. AMENDMENT AND TERMINATION

     The Board may amend or terminate the Plan at any time and in any manner,
provided that no amendment or termination shall reduce the amount credited to a
Participant's Account at the time of any such amendment or termination. Upon
termination of the Plan, all deferrals and interest crediting shall cease, and
the balance of all Plan Accounts shall be distributed to Participants as
promptly as practicable.

                                            PLATINUM UNDERWRITERS HOLDINGS, LTD.LINE OF CREDIT AGREEMENT

 

Exhibit 4.17

LINE OF CREDIT NOTE

			
	$3,000,000.00
	 	March 12, 2004

New Haven, Connecticut

          FOR VALUE RECEIVED, the undersigned, CONNECTICUT WATER SERVICE, INC., a
Connecticut corporation with a mailing address of 93 West Main Street, Clinton,
Connecticut 06413 (hereinafter referred to as the “Borrower”), promises to pay
to the order of WEBSTER BANK, a Connecticut bank with a mailing address of 80
Elm Street, New Haven, Connecticut 06510 (hereinafter referred to as “Bank”),
the sum of Three Million Dollars ($3,000,000.00) or so much thereof as shall
have been advanced and be outstanding hereunder, together with interest on the
outstanding unpaid principal balance hereof and costs thereon as set forth
below.

          1. Payment of Principal. The entire principal balance remaining unpaid
under this Note, together with all accrued but unpaid interest and all other
sums accruing hereunder, shall be due and payable on the Termination Date (as
hereinafter defined).

          2. Interest Rate; Payment of Interest.

          Interest on the outstanding principal amount of any loan shall accrue at
the Eurodollar Rate (as hereinafter defined) plus 1% during the applicable
Interest Period and shall be payable in arrears on the first day of each month
commencing April 1, 2004. Except as hereinafter expressly provided, interest
on sums advanced hereunder shall be payable at the rate set forth herein until
all such sums are fully paid, whether before or after maturity, by acceleration
or otherwise, and whether or not any judgment has been issued thereon.

          3. Loan Requests.

          3.1 Notice of Borrowing. Whenever the Borrower desires to obtain a
revolving loan under the Line of Credit (the “Loan”), the Borrower shall notify
the Bank via a telephone request received no later than 10:00 a.m (eastern
time) on the same day on which the requested Loan is to be made. Each such
notification shall be immediately followed by a written confirmation thereof by
Borrower in substantially the form of Exhibit A attached hereto (the “Notice of
Borrowing”).

          3.2 Availability of Funds. Subject to the terms and conditions of this
Note, Bank shall make each Loan available to the Borrower no later than 11:00
a.m. (eastern time) on the date specified in the Notice of Borrowing. If any
Loan is made, the Bank may, at its option, record on the

2

 

Exhibit 4.17

     books and records of the Bank, an appropriate notation evidencing each
Loan, each repayment on account of the principal thereof and the amount of
interest paid; and the Borrower authorizes the Bank to maintain such records
and agrees that the amount shown on the books and records, as outstanding from
time to time shall constitute the amount owing to the Bank pursuant to this
Note, absent manifest error.

     4. Definitions. As used herein, the following terms shall have the
meanings set forth below:

          4.1 “Business Day” means any day which is: (i) neither a Saturday or
Sunday nor a legal holiday on which commercial banks are authorized or required
to be closed in New Haven, Connecticut; and (ii) a London Banking Day.

          4.2 “Credit Agreement” means the Credit Agreement between the Borrower and
the Bank dated of even date herewith.

          4.3 “Eurodollar Rate” means the variable rate announced by Webster Bank
from day to day as its EURODOLLAR Rate, which rate shall be based upon the
thirty (30) day London Interbank Offered Rate for the offering by the Bank to
prime commercial banks in the inter-bank Eurodollar market of dollar deposits.
Such EURODOLLAR Rate shall be increased by the maximum marginal reserve
percentage, if any, as prescribed by the Board of Governors of the Federal
Reserve System for determining the reserve requirement for the Bank for
Eurodollar deposits having a maturity equal to one month. Any change in the
interest rate under this Note resulting from a change in the EURODOLLAR Rate
shall become effective immediately upon the date on which such change in the
EURODOLLAR Rate shall be adopted by the Bank.

          4.4 “London Banking Day” means a day in which dealings in U.S. dollar
deposits are transacted in the London interbank market.

          4.5 “Prime Rate” means the interest rate which the Bank announces from
time to time as its prime rate for commercial loans. The Prime Rate is a rate
used by the Bank from time to time in setting interest rates on loans. It is
not necessarily the lowest or best rate at which the Bank loans money. Any
change in the interest rate shall become effective immediately upon a change in
the Prime Rate and such changed interest rate shall become effective without
notice from Bank.

          4.6 “Prime Rate Loan” means any loan or advance the rate of interest
applicable to which is based upon the Prime Rate.

          4.7 “Termination Date” means March 31, 2005.

3

 

Exhibit 4.17

          5. Prepayment of Principal. Principal outstanding hereunder may be
prepaid at any time, without premium or penalty, in whole or in part.

          6. Miscellaneous Eurodollar Rate Loan Terms.

          6.1 Eurodollar Rate Lending Unlawful. If the Bank shall determine (which
determination shall, upon notice thereof to the Borrower be conclusive and
binding on the Borrower) that the introduction of or any change in or in the
interpretation of any law, rule, regulation or guideline, (whether or not
having the force of law) makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for the Bank to make,
continue or maintain any Eurodollar Rate Loan, the obligations of the Bank to
make, continue, maintain or convert into any such Eurodollar Rate Loan shall,
upon such determination, forthwith be suspended until the Bank shall notify the
Borrower that the circumstances causing such suspension no longer exist, and
all Eurodollar Rate Loans shall automatically convert into Prime Rate Loans.

          6.2 Substitute Rate. If the Bank shall have determined that

          (a) US dollar deposits in the relevant amount are not available to the
Bank in the London Interbank market; or

          (b) by reason of circumstances affecting the Bank in the London Interbank
market, adequate means do not exist for ascertaining the Eurodollar Rate
applicable hereunder to Eurodollar Rate Loans,

then, upon notice from the Bank to the Borrower, the obligations of the Bank to
continue any loans as, or to convert any loans into, Eurodollar Rate Loans
shall forthwith be suspended until the Bank shall notify the Borrower that the
circumstances causing such suspension no longer exist and all Eurodollar Rate
Loans shall be converted into Prime Rate Loans until such circumstances causing
such suspension no longer exist.

          7. Application of Payments. All payments will be applied first to the
payment of the then outstanding charges and expenses imposed against Bank in
maintaining and/or enforcing this Note and the Credit Agreement; second, to the
payment of the then-outstanding late charges imposed against Borrower in
connection herewith; third, to the payment of any accrued and unpaid interest
hereunder; and fourth, to the payment of principal. All sums due hereunder are
payable at the office of Webster Bank, 80 Elm Street, New Haven, Connecticut
06510, or at such place as Bank may from time to time designate in writing.

          8. Remedies Upon Default. Except as provided above, Bank may, at its
option, upon the occurrence of any of the Events of Default set forth in the
Credit Agreement, accelerate the maturity of this Note and declare the entire
balance of this Note, both principal and interest,

4

 

Exhibit 4.17

immediately due and payable and/or may enforce such other rights as are
available to Bank under the terms and conditions of any document securing this
Note or otherwise available at law or in equity. All rights and remedies
available to Bank shall be cumulative and not exclusive and the exercise or
beginning to exercise of any one of such remedies shall not preclude the
simultaneous or later exercise of any or all of such remedies. Borrower hereby
agrees to pay all expenses incurred by Bank, including, but not limited to,
reasonable attorney’s fees if placed in the hands of an attorney for collection
or if collected through probate, bankruptcy or other judicial proceedings.

          9. Default Rate. Upon the occurrence of any Event of Default (as defined
in the Credit Agreement) and so long as it continues, interest shall become
payable from the date of such Event of Default at a rate which is three
percentage points (3%) per annum in excess of the interest rate then in effect
as set forth above and shall be applicable to the entire amount owing
hereunder, which amount shall thereupon, at the option of the holder, and
without notice or demand, become immediately due and payable.

          10. Late Charge. Any payment due hereunder, whether of principal, interest
or otherwise which is not made within 10 business days after the date on which
it is payable shall bear a late charge equal to 5% of such payment due which
charge shall be added to such payment due. The imposition of such a charge by
the Bank shall not constitute a waiver of the Bank’s rights to declare a
default under the Loan Agreement of even date herewith, nor shall it impair the
right of the Bank to accelerate payment of this Note.

          11. Credit Agreement. This Note is the Line of Credit Note as defined in
the Credit Agreement, to which reference may be made for a description of the
terms and conditions of borrowing hereunder, and the rights of acceleration.

          12. Waiver. The Borrower waives presentment for payment, protest and
demand, notice of non-payment, protest, notice of protest, notice of
acceleration, notice of the intent to accelerate, the filing of suit, and
diligence in collecting this Note or enforcing any of the security herefor, and
agrees to the substitution, exchange or release of any such security or the
release of any party primarily or secondarily liable hereon, and further agrees
that it will not be necessary for the holder hereof, in order to enforce
payment of this Note by it, to first institute suit or exhaust its remedies
against Borrower, or to enforce its rights against any security herefor, and
consents to any one or more rearrangements, modifications, extensions or
postponements of the time, amount or manner of payment of this Note on any
terms or any other indulgences with respect thereto, without notice thereof to
Borrower and without discharging or reducing Borrower’s liability hereunder.
Bank may transfer this Note, and the rights and privileges of Bank under this
Note shall inure to the benefit of Bank’s representatives, successors, and
assigns.

5

 

Exhibit 4.17

          13. Usury. If, at any time, the effective interest rate under this Note
would, but for this paragraph, exceed the maximum lawful rate, if any, for
loans of this type, the effective interest rate payable under this Note shall
be the maximum lawful rate, and any amount received by the Bank in excess of
such rate shall be applied to principal and then to fees and expenses, or, if
no such amounts are owing, returned to the Borrower.

          14. Set-Off. The Bank shall have a lien on, and, after the occurrence of
an Event of Default, an option to set off against, all deposits and other
property of the undersigned in the possession or control of or in transit to
the Bank, without prior demand or notice, against the indebtedness described
herein.

          15. Governing Law. This Note shall be interpreted, construed and enforced
in accordance with the internal laws of the State of Connecticut, without
regard to Connecticut law with respect to conflict of laws.

          16. Severability. If any term, covenant, condition, agreement,
representation or warranty of the Note or the application thereof to any person
or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Note, or the application of such term, covenant, condition,
agreement, representation or warranty to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby and each term, covenant, condition, agreement, representation or
warranty of this Note shall be valid and enforced to the fullest extent
permitted by law.

          17. Captions. Plural. The captions contained in the Note are inserted for
convenience only and shall not affect the meaning or interpretation of the
Note. Where the context so requires, references to any gender shall include the
others and references to the singular shall include the plural and vice versa.

Waiver of Jury Trial. BORROWER HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING OF ANY KIND OR NATURE IN ANY COURT IN WHICH AN ACTION MAY
BE COMMENCED ARISING OUT OF THIS NOTE OR ANY ASSIGNMENT THEREOF OR BY REASON OF
ANY OTHER CAUSE OR DISPUTE BETWEEN BORROWER AND BANK IN CONNECTION WITH THE
TRANSACTION EVIDENCED BY THIS NOTE AND THE MORTGAGE. BORROWER ACKNOWLEDGES THAT
IT MAKES THIS WAIVER KNOWINGLY, VOLUNTARILY AND ONLY AFTER EXTENSIVE
CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS.

6

 

Exhibit 4.17

BORROWER HEREBY FURTHER AGREES THAT THE FOLLOWING COURTS:

STATE COURT — ANY STATE OR LOCAL COURT OF THE STATE OF CONNECTICUT

FEDERAL COURT — UNITED STATES DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT

OR AT THE OPTION OF BANK, ANY COURT IN WHICH BANK SHALL INITIATE LEGAL OR
EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER
IN CONTROVERSY, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY
CLAIMS OR DISPUTES BETWEEN BORROWER AND BANK PERTAINING DIRECTLY OR INDIRECTLY
TO THIS NOTE OR TO ANY MATTER ARISING IN CONNECTION WITH THIS NOTE. BORROWER
EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
PROCEEDING COMMENCED IN SUCH COURTS. THE EXCLUSIVE CHOICE OF FORUM SET FORTH
HEREIN SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT OBTAINED
IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS NOTE TO ENFORCE THE SAME
IN ANY APPROPRIATE JURISDICTION.

BORROWER HEREBY ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART
IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED UNDER CHAPTER 903a OF
THE CONNECTICUT GENERAL STATUTES OR BY OTHER APPLICABLE LAW, BORROWER HEREBY
WAIVES (A) ALL RIGHTS TO NOTICE AND PRIOR COURT HEARING OR COURT ORDER IN
CONNECTION WITH ANY AND ALL PREJUDGMENT REMEDIES TO WHICH BANK OR ANY
SUBSEQUENT HOLDER OF THIS NOTE MAY BECOME ENTITLED BY VIRTUE OF ANY EVENT OF
DEFAULT OR PROVISION OF THIS NOTE OR ANY MORTGAGE OR SECURITY AGREEMENT
SECURING THIS NOTE, AND (B) ALL RIGHTS TO REQUEST THAT THE BANK OR ANY
SUBSEQUENT HOLDER OF THIS NOTE POST A BOND, WITH OR WITHOUT SURETY, TO PROTECT
BORROWER OR ANY OTHER UABLE PARTY AGAINST DAMAGES THAT MAY BE CAUSED BY ANY
PREJUDGMENT REMEDY SOUGHT OR OBTAINED BY BANK OR ANY SUBSEQUENT HOLDER OF THIS
NOTE BY VIRTUE OF ANY EVENT OF DEFAULT OR OTHER PROVISION OF THIS NOTE OR ANY
MORTGAGE OR SECURITY AGREEMENT SECURING THIS NOTE, AND BORROWER HEREBY CONSENTS
TO THE ISSUANCE OF ANY SUCH PREJUDGMENT REMEDY WITHOUT SUCH A BOND.

7

 

Exhibit 4.17

          IN WITNESS WHEREOF, the undersigned has executed and delivered this Note
as of the date and year first above written.

	 	 	 	 	 
	 	 	CONNECTICUT WATER SERVICE, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ David C. Benoit
	

	 	 	 	
 
	

	 	 	 	Name: David C. Benoit
	

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	

	 	 	 	and
	 
	 	 	 	 
	

	 	By
	 	/s/ Marshall T. Chiarlauce
	

	 	 	 	
 
	

	 	 	 	Name: Marshall T. Chiaraluce
	

	 	 	 	Title: Chairman

8

 

Exhibit 4.17

Exhibit A

Form of Notice of Borrowing

Webster Bank

80 Elm Street

New Haven, Connecticut 06510

	 	 	 
	Re:

	 	Line of Credit Note dated as of March    , 2004
 (the “Note”) and Credit
 Agreement dated as of March    , 2004 (the “Agreement”).

Ladies and Gentlemen:

     Pursuant to Section 3 of the Note, the undersigned hereby confirms its
telephone request made on , 20 and for a loan in the amount of and
   /100
DOLLARS ($          ) on , 200 .

     The representations and warranties contained or referred to in Section 4
of the Agreement are true and accurate on and as of the effective date of the
requested loan as though made at and as of such date (except to the extent that
such representations and warranties expressly relate to an earlier date); and
no Event of Default has occurred and is continuing or will result from the
requested loan.

     Please deposit the funds to our operating account at Webster Bank No.
   .

	 	 	 	 	 	 	 
	 	 	 	 	CONNECTICUT WATER SERVICE, INC.
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ Marshall T. Chiaraluce
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	Marshall T. Chiaraluce, Chairman
	 
	 	 	 	 	 	 
	Date:

	 	

	 	 	 	and
	 
	 	 	 	 	 	 
	

	 	 	 	By:
	 	/s/ David C. Benoit
	

	 	 	 	 	 	
 
	

	 	 	 	 	 	David C. Benoit, Chief Financial Officer

9

 

Exhibit 4.17

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (the “Agreement”) is made as of the 12th day of
March 2004 by and between CONNECTICUT WATER SERVICE, INC., a corporation duly
organized and existing under the laws of the State of Connecticut with the
mailing address of 93 West Main Street, Clinton, Connecticut 06413 (the
"Borrower”) and WEBSTER BANK, a Connecticut bank having a place of business at
80 Elm Street, New Haven, Connecticut 06510 (the “Bank”).

W I T N E S S E T H:

     WHEREAS, the Borrower has requested the Bank to make available to Borrower
an unsecured revolving line of credit, as evidenced by a Revolving Line of
Credit Note in the principal amount of up to $3,000,000 executed by the
Borrower in favor of the Bank, of even date and delivery herewith (the “Note”);
and

     WHEREAS, the Bank is willing and may, from time to time, be willing to
make or consider making such loan to the Borrower upon the terms and conditions
set forth in this Agreement;

     NOW, THEREFORE, in consideration of the terms and conditions contained
herein, and of any extension of credit heretofore, now or hereafter made by
Bank to Borrower, the parties agree as follows:

	1.	 	GENERAL DEFINITIONS

     When used in this Agreement, the following terms shall have the following
meanings:

     1.1 “Advance”: a loan or advance of funds to or on behalf of the
Borrower by the Bank pursuant to this Agreement under the Line of Credit or a
borrowing or reborrowing by the Borrower of an outstanding amount under the
Line of Credit which shall bear interest as set forth in the Note.

     1.2 “Affiliate”: any Person which, directly or indirectly, owns or
controls, on an aggregate basis, including all beneficial ownership and
ownership or control as a trustee, guardian or other fiduciary, at least ten
percent (10%) of the outstanding capital stock having ordinary voting power to
elect a majority of the board of directors (irrespective of whether, at the
time, stock of any other class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) of
Borrower or any Subsidiary, or is controlled by or is under common control with
Borrower, or any stockholder of Borrower, or any Subsidiary. For the purpose
of this definition, “control” means the possession, directly or indirectly, of
the powers to direct or cause the direction of management and policies, whether
through the ownership of voting securities, by contract or otherwise.

 

 

Exhibit 4.17

     1.3 “Business Day”: any day on which the Bank is open for business.

     1.4 “Charges”: all federal, state, county, city, municipal, or other
governmental (including, without limitation, the Pension Benefit Guaranty
Corporation) taxes, levies, assessments, charges, liens, claims or encumbrances
upon or relating to

     (A) the Liabilities;

     (B) Borrower’s employees, payroll, income or gross receipts;

     (C) Borrower’s ownership or use of any of its assets; or

     (D) any other aspect of the Borrower’s business.

     1.5 “Event of Default”: shall have the meaning ascribed to it in Section
6 hereof.

     1.6 “Financials”: those financial statements of Borrower, internally
prepared by management of the Borrower and dated as of September 30, 2003,
which have been delivered to the Bank.

     1.7 “GAAP”: generally accepted accounting principles in the United States
of America, as from time to time in effect.

     1.8 “Indebtedness”: all liabilities, obligations and indebtedness of any
and every kind and nature, including, without limitation, the Liabilities,
whether heretofore, now or hereafter owing, arising, due, or payable from
Borrower to any Person and howsoever evidenced, created, incurred, acquired or
owing, whether primary, secondary, direct, contingent, fixed or otherwise.
Without in any way limiting the generality of the foregoing, Indebtedness
specifically includes the following:

          (A) All obligations or liabilities of any Person that are secured by any
lien, claim, encumbrance, or security interest upon property owned by the
Borrower, even though the Borrower has not assumed or become liable for the
payment thereof;

          (B) All obligations or liabilities created or arising under any lease of
real or personal property or conditional sale or other title retention
agreement with respect to property used or acquired by the Borrower, even
though the rights and remedies of the lessor, seller or Bank thereunder are
limited to repossession of such property;

          (C) All unfunded pension fund obligations and liabilities; and

          (D) Deferred taxes and reserves for deferred taxes.

2

 

Exhibit 4.17

     1.9 “Liabilities”: all liabilities, obligations and indebtedness of any
and every kind and nature, (including, without limitation, interest, charges,
expenses, attorneys’ fees and other sums chargeable to the Borrower by Bank and
future Advances made to or for the benefit of the Borrower) owing from the
Borrower to the Bank, whether arising under this Agreement, under any of the
Other Agreements, or acquired by Bank from any other source, whether now owed
or hereafter owing, arising, due, or payable from the Borrower to Bank, no
matter howsoever evidenced, created, incurred, acquired or owing, whether
primary, secondary, direct, contingent, fixed or otherwise, and including
obligations of performance.

     1.10 “Line of Credit”: shall have the meaning ascribed to it in Section
2.1 hereof.

     1.11 “Note”: the Line of Credit Note in the principal amount of up
$3,000,000 executed by the Borrower in favor of the Bank, dated of even date
herewith, which evidences the Borrower’s obligations under the Line of Credit,
and any extensions, renewals and replacements thereof and substitutions
therefor.

     1.12 “Other Agreements”: all agreements, instruments, documents, and all
other written matter whether heretofore, now, or hereafter executed by or on
behalf of the Borrower and delivered to Bank or any Participant with respect to
this Agreement or any of the Other Agreements, and including, without
limitation, the Note, as each may be modified from time to time.

     1.13 “Participant”: any Person, now or at any time or times hereafter,
participating with Bank in the loans made by Bank to the Borrower pursuant to
this Agreement or the Other Agreements.

     1.14 “Person”: any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation,
institution, entity, party, or government (whether national, federal, state,
county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

     1.15 “Stock”: all shares, options, interests, participations or other
equivalents (howsoever designated) of or in a corporation, whether voting or
non-voting, including, without limitation, common stock, warrants, preferred
stock, convertible debentures and all agreements, instruments and documents
convertible, in whole or in part, into any one or more or all of the foregoing.

     1.16 “Subordinated Debt”: Indebtedness now or hereafter owing by the
Borrower, the payment of which has been subordinated to the payment of the
Liabilities in form and substance satisfactory to the Bank.

     1.17 “Subsidiary”: any corporation or a limited liability company of
which more than fifty percent (50%) of the outstanding capital stock or units,
as applicable, having ordinary voting power to elect a majority of the board of
directors or a majority of the managers, as applicable, is at the time,
directly or indirectly, owned by Borrower or one or more Subsidiaries.

3

 

Exhibit 4.17

     1.18 “Termination Date”: shall mean March 31, 2005.

     1.19 Any accounting terms which are used herein but not specifically
defined herein shall have the meaning customarily given them in accordance with
generally accepted accounting principles.

	2.	 	LOAN: GENERAL TERMS

     2.1 Line of Credit

     (i) General Terms. So long as there exists no Event of Default or event
or condition which, with the passage of time, the giving of notice or both
would constitute an Event of Default, the Bank shall make an unsecured
revolving Line of Credit available for the Borrower’s use from time to time
upon the request of the Borrower, which Line of Credit shall be subject to all
of the terms and conditions of this Agreement (the “Line of Credit”). Except
as expressly provided herein to the contrary, the maximum amount of Advances
under the Line of Credit to be outstanding at any time in the aggregate shall
not exceed the sum of $3,000,000.

     Advances made by the Bank under the Line of Credit shall be evidenced by
the Note and shall bear interest at the rate provided therein.

     (ii) Use of Proceeds. Borrower shall use the proceeds of all Advances
under the Line of Credit for general corporate purposes.

     (iii) Termination Date. Borrower shall have no right to request Advances
under the Line of Credit on or after Termination Date. All sums outstanding
under the Line of Credit on the Termination Date shall be payable in full on
that date.

     (iv) Fee on Unused Availability. To the extent that the daily average of
borrowing outstanding under the Line of Credit in any calendar quarter is less
than $3,000,000 (the “Unused Availability”), the Borrower shall pay to the Bank
quarterly, on demand, a fee calculated on the Unused Availability at the rate
of one-quarter percent per annum times the number of days in the quarter.

     2.2 All Advances to Constitute One Loan. All Advances by Bank to the
Borrower under this Agreement and the Other Agreements, shall constitute one
general obligation of the Borrower to Bank. Borrower agrees that all of the
rights of Bank set forth in this Agreement shall apply to any modification of
or supplement to this Agreement and the Other Agreements.

4

 

Exhibit 4.17

	3.	 	LOAN PAYMENTS

     3.1 Payments. All payments to Bank shall be payable at Bank’s address set
forth below or at such other place or places as Bank may designate from time to
time in writing to Borrower. Except where evidenced by notes or other
instruments issued or made by Borrower to Bank specifically containing
provisions which are in conflict with this Section (in which event the
conflicting provisions of said notes or other instruments shall govern and
control), the Liabilities shall be payable, in immediately available funds, as
follows:

     (A) Principal payments on account of the Line of Credit, shall be payable
on the Termination Date.

     (B) Interest shall be payable as provided in the Note;

     (C) Costs, fees and expenses payable pursuant to this Agreement or the
Other Agreements shall be payable on demand by Borrower to Bank or to such
other Persons designated by Bank; and

     (D) The balance of the Liabilities, if any, shall be payable by Borrower
to Bank as and when provided in this Agreement or the Other Agreements and, if
not specified, then on demand.

     3.2 Authorization to Charge Borrower’s Account. The Borrower hereby
authorizes the Bank, at the Bank’s option, to charge all amounts coming due
hereunder or under any of the Other Agreements against the operating account
maintained by the Borrower with the Bank.

     3.3 Statement of Account. Bank shall provide Borrower with a statement of
account on a monthly basis and each statement of account which is delivered by
Bank to Borrower and which relates to the Liabilities shall be presumed correct
and accurate and shall constitute an account stated between Borrower and Bank
unless thereafter waived in writing by Bank or unless, within twenty (20) days
after Borrower’s receipt of said statement, Borrower delivers to Bank, by
registered or certified mail addressed to Bank at the address set forth below,
written objection thereto specifying the error or errors, if any, contained in
such statements.

	4.	 	WARRANTIES AND REPRESENTATIONS

	4.1	 	General Warranties and Representations. Borrower warrants and represents
the following:

     (A) It is a corporation duly organized and validly existing under the laws
of the State of Connecticut, qualified or licensed to do business in the State
of Connecticut and all other jurisdictions in which the laws thereof require it
to be so qualified or licensed;

     (B) It has the right and power and is duly authorized and empowered to
enter into, execute, deliver and perform this Agreement and the Other
Agreements executed concurrently herewith;

5

 

Exhibit 4.17

     (C) The execution, delivery and performance by it of this Agreement and
the Other Agreements shall not, by the lapse of time, the giving of notice or
otherwise, constitute a violation of any applicable law or a breach of any
provision contained in its Articles of Incorporation or By-Laws or contained in
any agreement, instrument, document or bond indenture to which it is now a
party or by which it or any of its assets is bound;

     (D) Its uses of the proceeds of any Advances made by Bank to it pursuant
to this Agreement or the Other Agreements are, and will continue to be legal
and proper corporate uses and such uses are consistent with all applicable laws
and statutes, as in effect as of the date hereof and consistent with the terms
of this Agreement;

     (E) It has, and is in material compliance with respect to, all government
approvals, permits, certificates, inspections, consents and franchises
necessary to continue to conduct its business in the manner described to Bank,
and to own or lease and operate its properties;

     (F) None of said approvals, permits, certificates, consents or franchises
contain any term, provision, condition or limitation more burdensome than such
as are generally applicable to persons engaged in the same or similar business
as it;

     (G) It now has capital sufficient to carry on its business and
transactions and all businesses and transactions in which it is about to engage
and is now able to pay its debts as they mature;

     (H) Except for trade payables arising in the ordinary course of its
business since the dates reflected in the Financials and except as disclosed in
the Financials, or otherwise to the Bank, it has no litigation pending and no
Indebtedness and has not guaranteed the obligations of any other Person;

     (I) It is not a party to any labor contract and it is not a party to any
contract or agreement or subject to any charge, restriction, judgment, decree
or order materially and adversely affecting its business, property, assets,
operations or condition, financial or otherwise;

     (J) It is in compliance with all applicable statutes, regulations or
ordinances of any governmental entity, including, without limitation, the
United States of America, any state, city, town, municipality, county or of any
other jurisdiction or country, whether foreign or domestic, or of any agency
thereof (including, without limitation, environmental laws), non-compliance
with which would materially and adversely affect the business, property,
assets, operations or condition, financial or otherwise of the Borrower or any
Subsidiary;

     (K) The Financials fairly present the assets, liabilities and financial
condition as of the date thereof, there are no omissions or other facts or
circumstances which are or may be material and there have been no material and
adverse changes, in the assets, liabilities or financial condition of it

6

 

Exhibit 4.17

since the date of the Financials; there exist no equity or long term
investments in, or outstanding Advances, to any Person not reflected in the
Financials; there are no actions or proceedings which are pending or, to the
best of its knowledge, threatened against it which might result in any material
adverse change in its financial condition or materially and adversely affecting
its business, property, operations or its assets;

     (L) It has received no notice to the effect that it is not in full
compliance with any of the requirements of the Employee Retirement Income
Security Act of 1974, as amended, (“ERISA”) and the regulations promulgated
thereunder and, to the best of its knowledge there exists no event described in
Section 4043 of ERISA, excluding subsections 4043(b)(2) and 4043(b)(3) thereof
(“Reportable Event”);

     (M) It has filed all federal, state and local tax returns and other
reports it is required by law to file and has paid all Charges that are due and
payable;

     (N) Its execution and delivery of this Agreement or any of the Other
Agreements does not directly or indirectly violate or result in the violation
of Section 7 of the Securities Exchange Act of 1934, as amended, or any
regulations issued pursuant thereto, including without limitation, Regulations
T, U and X of the Board of Governors of the Federal Reserve System (12 CFR
Sections 220, 221, and 224, respectively) and it does not own or intend to
purchase or carry any “margin security”, as defined in said Regulations;

     4.2 Automatic Warranty and Reaffirmation of Warranties and
Representations. Each request for an Advance made by Borrower pursuant to this
Agreement or the Other Agreements shall constitute (i) an automatic warranty
and representation by the Borrower to Bank that there does not then exist an
Event of Default or any event or condition which, with notice, lapse of time or
the making of such Advance, would constitute an Event of Default and (ii) a
reaffirmation as of the date of said request of all of the material
representations and warranties of the Borrower contained in this Agreement or
the Other Agreements, provided, however, that the representations and
warranties contained in Section 4.1(H) and 4.1(K) hereof shall be deemed to
refer to the most current financial statements which will have been furnished
to the Bank.

     4.3 Survival of Warranties and Representations. Borrower covenants,
warrants and represents to Bank that all representations and warranties of
Borrower contained in this Agreement and the Other Agreements, shall survive
the execution, delivery and acceptance thereof by the parties thereto and the
closing of the transactions described therein or related thereto.

	5.	 	COVENANTS AND CONTINUING AGREEMENTS

     5.1 Affirmative Covenants. Borrower covenants that so long as any
Liabilities remain outstanding or the Bank has any obligation to make loans or
Advances under this Agreement, unless the Bank, in its discretion, expressly
agrees to the contrary, Borrower shall:

7

 

Exhibit 4.17

     (A) Allow Bank, or its agents, during normal business hours, access to the
books, records and such other documents of Borrower as Bank shall reasonably
require, and allow Bank, at Borrower’s expense, to inspect, audit and examine
the same and to make extracts therefrom and to make copies thereof;

     (B) Conduct its business in substantially the same manner as such business
is now and has previously been conducted;

     (C) Maintain adequate insurance coverage with respect to its properties
and business against loss or damage of the kinds and in the amounts customarily
insured against by companies of established reputation engaged in the same or
similar businesses including, without limitation, commercial general liability
insurance, workers compensation insurance, and business interruption insurance,
all acquired in such amounts and from such companies as Bank may reasonably
require;

     (D) Maintain, preserve and keep its property in good repair, working order
and condition, making necessary replacements, additions and improvements
thereto, to the extent allowed by this Agreement;

     (E) Keep books of account and prepare financial statements and cause to be
furnished to Bank the following (all of the foregoing and following to be kept
and prepared in accordance with generally accepted accounting principles
applied on a basis consistent with the Financials, unless Borrower’s certified
public accountants concur in any changes therein and such changes are disclosed
to Bank and are consistent with then generally accepted accounting principles):

     (i) as soon as available, but not later than one hundred twenty days
(120) after the close of each fiscal year of Borrower thereafter, audited
financial statements of Borrower reflecting its operations during such
fiscal year, including, without limitation, a balance sheet, profit and
loss statement and statement of cash flows, with supporting schedules; in
reasonable detail, prepared in conformity with GAAP, applied on a basis
consistent with that of the preceding year, certified by an independent
certified public accountant selected by the Borrower but reasonably
acceptable to the Bank;

     (ii) together with the financial statements described in clause (i)
above, a written statement signed by the Chief Financial Officer of the
Borrower stating that (a) the financial statements are true and correct
and (b) he has reviewed this Agreement and all other loan or credit
agreements to which the Borrower or any Subsidiary is a party or by which
the Borrower or any Subsidiary is bound and that, based on such review,
in his opinion the Borrower and such Subsidiary is in compliance with all
of the terms thereof, or if it is not in compliance, a description of
such non-compliance and a statement of the action the Borrower or such
Subsidiary intends to take in connection therewith.

     (iii) as soon as available, but not later than 60 days after the end
of each of the Borrower’s calendar quarters, management-prepared
quarterly financial statements of

8

 

Exhibit 4.17

Borrower as of the end of the portion of Borrower’s fiscal year then
elapsed, consisting of a balance sheet, profit and loss statement and
statement of cash flows, with supporting schedules, all in reasonable
detail, prepared in conformity with GAAP, applied on a basis consistent
with that of the preceding year; such statements shall be certified as to
their correctness by a principal financial officer of Borrower; and

     (iv) such other data and information (financial and otherwise) as
the Bank, from time to time, may reasonably request, bearing upon or
related to the Borrower’s financial condition and result of operations;

     (F) Notify Bank in writing, promptly upon its learning thereof, of the
institution of any suit whether or not the claim is considered to be covered by
insurance, or administrative proceeding which may materially and adversely
affect the operations, financial condition or business of the Borrower;

     (G) Promptly notify the Bank in writing of (i) any material adverse change
in its financial condition or its business taking into account seasonal
fluctuation in Borrower’s income stream, (ii) any default under any material
agreement, contract or other instrument to which it or a Subsidiary is a party;

     (H) Make timely payments on account of its funded and unfunded pension
liabilities in such amounts as are determined by its pension actuarial
consultants to be required by law;

     (I) Maintain an operating account with the Bank;

     5.2 Negative Covenants. Borrower covenants that, so long as any of the
Liabilities remain outstanding or the Bank has any obligation to make loans or
Advances under this Agreement, unless the Bank in its discretion expressly
agrees to the contrary, the Borrower shall not:

     (A) Redeem, retire, purchase or otherwise acquire, directly or indirectly,
the Stock of Borrower unless at the time of such transaction there does not
exist any Event of Default or event or condition which, with the passage of
time, the giving of notice or both would become an Event of Default and no
Event of Default would be caused by or result from such transaction;

     (B) Make any material change in its capital structure or in any of its
business objectives, purposes and operations which might in any way adversely
affect the repayment of the Liabilities;

     (C) Enter into any transaction which materially and adversely affects its
business, operations or financial condition or its ability to repay the
Indebtedness or permit or agree to any extension, compromise or settlement;

9

 

Exhibit 4.17

     (D) Suffer or consent to any material change in the management or the
stock ownership of the Borrower unless the Borrower is acquired and the
acquirer assumes the obligations of the Borrower hereunder in writing.

     (E) Enter into any transaction with an Affiliate except on fair and
reasonable terms which are no less favorable to the Borrower than would be the
case in an arm’s length transaction with a third party.

     5.3 Financial Covenants. The Borrower shall maintain, at all times, a
corporate credit rating from Standard & Poor’s of not less than BBB.

     5.4 Payment of Charges. Subject to the provisions of Section 5.5 below,
Borrower shall pay promptly when due all of the Charges. In the event
Borrower, at any time or times hereafter, shall fail to pay the Charges or to
promptly obtain the discharge of such Charges, Borrower shall so advise Bank
thereof in writing and Bank may, without waiving or releasing any obligation or
liability of Borrower hereunder or any Event of Default, in its sole
discretion, at any time or times thereafter, make such payment, or any part
thereof, or obtain such discharge and take any other action with respect
thereto which Bank deems advisable. All sums so paid by Bank and any expenses,
including reasonable attorneys’ fees, court costs, expenses and other charges
relating thereto, shall be payable within 10 Business Days following demand, by
Borrower to Bank and shall be additional Liabilities hereunder. Until such
sums are repaid by Borrower to Bank they shall bear interest at a rate which is
3% per annum in excess of the highest interest rate borne by any of the
Liabilities and such interest shall be calculated based on a year of 360 days,
but shall be payable for the actual number of days elapsed.

     5.5 Contesting Charges. Notwithstanding anything to the contrary herein,
Borrower may dispute any Charges without prior payment thereof, even if such
non-payment may cause a lien to attach to Borrower’s assets, provided that
Borrower shall have given Bank written notice of said dispute and shall be
diligently contesting the same in good faith in an appropriate proceeding and,
provided further that the Borrower maintains adequate reserves on its books
with respect to such charges.

	6.	 	EVENTS OF DEFAULT; RIGHTS AND REMEDIES ON DEFAULT

     6.1 Event of Default. The occurrence of any one or more of the following
events shall constitute an “Event of Default”:

     (A) Borrower fails to pay the Liabilities when due and payable or declared
due and payable or the Borrower or any Subsidiary is in default in the payment
of any material portion of its Indebtedness or under any agreement pertaining
thereto;

     (B) Borrower fails or neglects to perform, keep or observe any other term,
provision, condition, covenant, warranty or representation contained in this
Agreement or in any of the Other

10

 

Exhibit 4.17

Agreements, which is required to be performed, kept or observed and the same is
not cured to Bank’s satisfaction within thirty (30) days after Bank gives
Borrower written notice thereof or, if such event or condition is capable of
being cured but is not capable of being cured within thirty (30) days, the
Borrower does not commence such cure promptly and prosecute it diligently and
complete it within one hundred twenty (120) days following such written notice;

     (C) Any representation, warranty, statement, report, financial statement,
or certificate whether contained herein or in any of the Other Agreements or
otherwise made or delivered by Borrower, or any of Borrower’s officers,
employees or agents to Bank is not true and correct when made in any material
respect;

     (D) Any material portion of the assets of the Borrower or any Subsidiary
are attached, seized, levied upon or subjected to a writ or distress warrant,
or come within the possession of any receiver, trustee, custodian or assignee
for the benefit of creditors and the same is not released within sixty (60)
days thereafter; an application is made by any Person other than Borrower or
any Subsidiary for the appointment of a receiver, trustee, or custodian for any
material portion of the assets of the Borrower or such Subsidiary and the same
is not dismissed within sixty (60) days after the application therefor;

     (E) An application is made by Borrower or any Subsidiary for the
appointment of a receiver, trustee or custodian for any material portion of its
assets; a petition under any section or chapter of the Bankruptcy Code or any
similar law or regulation is filed by Borrower or any Subsidiary; Borrower or
any Subsidiary makes an assignment for the benefit of its creditors or any case
or proceeding is filed by Borrower or any Subsidiary for its dissolution,
liquidation, or termination;

     (F) Borrower or any Subsidiary ceases to conduct its business as now
conducted or is enjoined, restrained or in any way prevented by court order
from conducting all or any material part of its business affairs; a petition
under any section or chapter of the Bankruptcy Code or any similar law or
regulation is filed against Borrower or any Subsidiary or any case or
proceeding is filed against Borrower or any Subsidiary for its dissolution or
liquidation and such injunction, restraint or petition is not dismissed within
sixty (60) days after the entry or filing thereof;

     (G) Except as permitted in Section 5.4 above, a notice of lien, levy or
assessment is filed of record with respect to all or any of the assets of the
Borrower or any Subsidiary by the United States, or any department, agency or
instrumentality thereof, or by any state, county, municipal or other
governmental agency, including, without limitation, the Pension Benefit
Guaranty Corporation, or if any taxes or debts owing at any time or times
thereafter to any one of them becomes a lien or encumbrance upon any of the
assets of the Borrower or any Subsidiary and the same is not released within
the lesser of sixty (60) days or such grace period as may be permitted under
any Subsidiary’s loan agreement after the same becomes a lien or encumbrance;

11

 

Exhibit 4.17

     (H) Borrower or any Subsidiary becomes insolvent or is generally not
paying its debts as they mature;

     (I) Failure of Borrower to promptly and, in any event, within fifteen (15)
days after the occurrence of the respective event, furnish Bank with
appropriate written notice upon the occurrence of any of the following events:
(i) the happening of a Reportable Event as defined in ERISA with respect to any
profit sharing or pension plan governed by ERISA (such notice shall then
contain (a) the statement of the chief financial officer of Borrower setting
forth details as to such Reportable Event and the action which Borrower
proposes to take with respect thereto and (b) a copy of the notice of such
Reportable Event to the Pension Guaranty Benefit Corporation), (ii) the
termination of any such plan, (iii) the appointment of a trustee by an
appropriate United States district court to administer any such plan, or (iv)
the institution of any proceedings by the Pension Benefit Guaranty Corporation
to terminate any such plan or to appoint a trustee to administer any such plan;
furnish to Bank a copy of each report which is filed by Borrower with respect
to each such plan promptly after the filing thereof with the Secretary of Labor
or the Pension Benefit Guaranty Corporation; notify Bank promptly upon receipt
by Borrower of any notice of the institution of any proceeding or any other
actions which may result in the termination of such plans; or acquire and
maintain, when available, the contingent employer liability coverage insurance
provided for under Section 4023 of ERISA, such insurance to be satisfactory to
Bank in coverage and amount;

     (J) The occurrence of a material adverse change in the business,
operations or financial condition of the Borrower or any Subsidiary.

     6.2 Termination of Advances; Acceleration of the Liabilities. Upon and
after an Event of Default, the commitment of the Bank to make any further loans
or Advances hereunder shall immediately terminate and all the Liabilities may,
at the option of Bank and without demand, notice, or legal process of any kind,
be declared, and immediately shall become, due and payable. If a Default occurs
and is continuing, the Borrower shall immediately (i) pay all amounts owing to
the Bank hereunder and under any of the Other Agreements, and (ii) remit to
Bank cash collateral equal to the undrawn face amount of any letter of credit
issued and outstanding and the amount of any exposure on foreign exchange
transactions, as determined by the Bank; plus (iv) any fees, costs or expenses
to which the Bank is entitled under this Agreement or Other Agreements.

     6.3 Remedies. Upon and after an Event of Default, Bank shall have all the
rights and remedies available under applicable law, all of which rights and
remedies shall be cumulative, and none exclusive, to the extent permitted by
law, in addition to any other rights and remedies contained in this Agreement
and in all of the Other Agreements.

	7.	 	MISCELLANEOUS

     7.1 Modification of Agreement, Sale of Interest. Neither this Agreement
nor the Other Agreements may be modified, altered or amended, except by an
agreement in writing signed by Borrower and Bank. Borrower may not sell,
assign or transfer this Agreement, or the Other

12

 

Exhibit 4.17

Agreements or any portion thereof, including, without limitation,
Borrower’s rights, title, interests, remedies, powers, or duties hereunder or
thereunder. Borrower hereby consents to Bank’s participation, sale,
assignment, transfer or other disposition, at any time or times hereafter of
this Agreement, or the Other Agreements, or of any portion hereof or thereof,
including, without limitation, Bank’s rights, title, interests, remedies,
powers, and duties hereunder and thereunder, provided that Bank shall reserve
and retain to itself control over the administration of this Loan Agreement and
the matters contemplated hereunder.

     7.2 Attorneys’ Fees and Expenses. If, at any time or times, whether prior
or subsequent to the date hereof and regardless of the existence of an Event of
Default, Bank employs counsel for advice or other representation or incurs
legal or other costs and expenses in connection with:

          (A) The preparation of this Agreement, all Other Agreements, any amendment
of or modification of this Agreement or the Other Agreements; or

          (B) Any litigation, contest, dispute, suit, proceeding or action (whether
instituted by Bank, Borrower or any other Person) in any way relating to this
Agreement, the Other Agreements or Borrower’s affairs;

          (C) Any attempt to enforce any rights of Bank or any Participant against
Borrower or any other Person which may be obligated to Bank by virtue of this
Agreement or the Other Agreements; or

     All the reasonable attorneys’ fees and reasonably incurred expenses,
costs, charges and other fees of such counsel or Bank in any way or respect
arising in connection with or relating to any of the events or actions describe
in this Section shall be payable, within 10 days following demand, by Borrower
to Bank and shall be additional Liabilities hereunder. Until such sums are
repaid by the Borrower to the Bank they shall bear interest at a rate which is
3% per annum in excess of the highest rate borne by any of the Liabilities.
Such interest shall be calculated based on a year of 360 days but shall be
payable for the actual number of days elapsed. Notwithstanding anything herein
to the contrary, no interest shall accrue on any such fees or expenses until
Bank has actually paid such fees. Without limiting the generality of the
foregoing, such expenses, costs, charges and fees may include accountants’
fees, costs and expenses; court costs and expenses; photocopying and
duplicating expenses; court reporter fees, costs and expenses; long distance
telephone charges; air express charges; telegram charges; secretarial overtime
charges; and expenses for travel, lodging and food paid or incurred in
connection with the performance of such legal services.

     7.3 Waiver by Bank. Bank’s failure, at any time or times hereafter, to
require strict performance by Borrower of any provision of this Agreement shall
not waive, affect or diminish any right of Bank thereafter to demand strict
compliance and performance therewith. Any suspension or waiver by Bank of an
Event of Default by Borrower under this Agreement or the Other Agreements,
shall not be a waiver of any other Event of Default whether the same is prior
or subsequent thereto and whether of the same or of a different type. None of
the undertakings, agreements, warranties,

13

 

Exhibit 4.17

covenants and representations of Borrower contained in this Agreement or
the Other Agreements and no Event of Default by the Borrower under this
Agreement or the Other Agreements shall be deemed to have been suspended or
waived by Bank, unless such suspension or waiver is by an instrument in writing
signed by an officer of Bank and directed to Borrower specifying such
suspension of waiver.

     7.4 Severability. Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by
or invalid or unenforceable under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement. If all or any portion of this Agreement shall be prohibited by
or invalid or unenforceable under applicable law in any particular context in
which, or with respect to any portion of the Liabilities against which, it is
sought to be enforced, such prohibition, invalidity or unenforceability shall
be limited to the specific provision and to the specific context, and shall not
affect any other provision or the application of this Agreement in any other
context.

     7.5 Parties. This Agreement and the Other Agreements shall be binding
upon and inure to the benefit of the successors and assigns of Borrower and
Bank. This provision, however, shall not be deemed to modify Section 7.1
hereof.

     7.6 Conflict of Terms. The provisions of the Other Agreements are
incorporated in this Agreement by reference thereto. Except as otherwise
provided in this Agreement and except as otherwise provided in the Other
Agreements by specific reference to the applicable provision of this Agreement,
if any provision contained in this Agreement is in conflict with, or
inconsistent with, any provision in the Other Agreements, the provision
contained in this Agreement shall govern and control.

     7.7 Waivers by Borrower. Except as otherwise provided for in this
Agreement, Borrower waives presentment, demand and protest and notices of
presentment, protest and nonpayment.

     7.8 Indemnity by Borrower. The Borrower agrees to indemnify and hold Bank
and its respective shareholders, directors, agents, officers, employees,
subsidiaries and affiliates harmless from and against any and all damages,
losses, obligations, payments, liabilities, claims, actions or causes of
actions, fees or expenses (including legal fees) and other matters incurred,
sustained or paid by Bank or such indemnified party in connection with or as a
result of this transaction, except to the extent that any of the foregoing
matters result from the gross negligence or willful misconduct of Bank or any
other indemnified party.

     7.9 Taxes. The Borrower agrees to pay any and all stamp, document,
transfer or recording taxes and any and all other taxes (except franchise taxes
or taxes measured by Lender’s taxable income) and similar impositions payable
or hereafter determined to be payable in connection with this Agreement or any
other Loan Document or any other documents, instruments or

14

 

Exhibit 4.17

transactions pursuant to or in connection herewith and therewith, whether such
tax is imposed upon the Lender or the Borrower, and agrees to save the Lender
harmless from and against any and all present or future claims or liabilities
with respect to, or resulting from any delay in paying or omission to pay, any
such taxes or similar impositions.

     7.10 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. THIS
AGREEMENT HAS BEEN EXECUTED AND DELIVERED AT AND SHALL BE DEEMED TO HAVE BEEN
MADE AT NEW HAVEN, CONNECTICUT AND SHALL BE INTERPRETED, AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO DETERMINED, IN ACCORDANCE WITH THE INTERNAL
SUBSTANTIVE LAWS OF THE STATE OF CONNECTICUT. BORROWER WAIVES TRIAL BY JURY
AND WAIVES ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER.

     7.11 Notice. Except as otherwise provided herein, any notice required
hereunder or under any of the Other Agreements shall be in writing, and shall
be deemed to have been validly served, given or delivered upon deposit in the
United States mails, with proper postage prepaid, or hand delivered or
delivered by registered or certified mail or by courier or messenger service
and addressed to the party to be notified as follows:

	(A)	 	If to Bank, at

	 	 	80 Elm Street

New Haven, Connecticut 06510
	 
	 	 	Attention: John H. Frost, Vice President

	(B)	 	If to Borrower, at

	 	 	93 West Main Street

Clinton, CT 06413
	 
	 	 	Attention: David C. Benoit, Chief Financial Officer

or to such other address as each party may designate for itself by like notice.

     7.12 Usury. If, at any time, the effective interest rate payable on the
Liabilities under this Agreement or any of the Other Agreements would, but for
this paragraph, exceed the maximum lawful rate, if any, for loans of this type,
the effective interest rate payable under this Agreement and the Other
Agreements shall be such maximum lawful rate, and any amount received by the
Bank in excess of such rate shall be applied to principal and then to fees and
expenses, or, if no such amount is owing, returned to Borrower.

15

 

Exhibit 4.17

     7.13 WAIVER OF RIGHTS UNDER SECTION 52-278f OF THE CONNECTICUT GENERAL
STATUTES. BORROWER HEREBY ACKNOWLEDGES THAT THIS AGREEMENT, THE OTHER
AGREEMENTS, AND ANY AND ALL LOANS AND OTHER TRANSACTIONS MADE OR INCURRED
PURSUANT HERETO OR THERETO, CONSTITUTE A COMMERCIAL TRANSACTION. PURSUANT TO
SECTION 52-278f OF THE CONNECTICUT GENERAL STATUTES, BORROWER HEREBY WAIVES AND
RELINQUISHES ALL RIGHTS TO NOTICE AND HEARING AS PROVIDED IN §52-278a THROUGH
§52-278g OF SAID CONNECTICUT GENERAL STATUTES PRIOR TO THE SECURING OF ANY
PREJUDGMENT REMEDY AGAINST SUCH BORROWER IN CONNECTION WITH THE
ABOVE-REFERENCED LOANS AND OTHER TRANSACTIONS OR ANY OF THE INSTRUMENTS OR
DOCUMENTS EXECUTED IN CONNECTION THEREWITH.

     7.14 Section Titles. The Section Titles contained in this Agreement are
and shall be without substantive meaning or content of any kind whatsoever and
are not a part of the agreement between the parties.

     7.15 Multiple Counterparts. For the convenience of the parties, this
Agreement may be executed in more than one counterpart but all such
counterparts shall constitute one and the same agreement.

16

 

Exhibit 4.17

     IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year specified at the beginning hereof.

	 	 	 	 	 
	 	 	CONNECTICUT WATER SERVICE, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ David C. Benoit
	

	 	 	 	
 
	

	 	 	 	Name: David C. Benoit
	

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	

	 	 	 	and
	 
	 	 	 	 
	

	 	By:
	 	/s/ Marshall T. Chiaraluce
	

	 	 	 	
 
	

	 	 	 	Name: Marshall T. Chiaraluce
	

	 	 	 	Title: Cahirman
	 
	 	 	 	 
	 	 	WEBSTER BANK
	 
	 	 	 	 
	

	 	By:
	 	/s/ John H. Frost
	

	 	 	 	
 
	

	 	 	 	Name: John H. Frost
	

	 	 	 	Title: Vice President

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]