Document:

<PAGE>   1
                                                                   Exhibit 10.40

           Second Deed made the 10th day of March 1983.

BETWEEN:                           CAYMAN WATER COMPANY LIMITED
                                   a Company incorporated and existing
                                   under the laws of the Cayman Islands
                                   with registered office in George Town,
                                   Grand Cayman, Cayman Islands

                                   (hereinafter called "the Borrower")

                                   OF THE ONE PART

AND:                               THE ROYAL BANK OF CANADA

                                   of P.O. Box 245, George Town,
                                   Grand Cayman, Cayman Islands

                                   (hereinafter called "the Bank")

                                   OF THE OTHER PART

WHEREAS:-

(1)  This Deed is made supplemental to the Debenture ("the Debenture") dated 1st
     June 1979 between the Borrower, the Bank, Philip H. Lustig ("Lustig") and
     Cayman Public Utilities Ltd. (CPU) as supplemented by Deed dated 30th April
     1981 between the Borrower and the Bank and to all collateral security
     documents and agreements executed pursuant thereto (hereinafter together
     called "the Bank Security")

(2)  The Bank has agreed at the request of the Borrower to exclude from the
     security created by the Bank Security certain assets of the Borrower.

NOW THIS DEED WITNESSETH as follows:-

1.   In consideration of the said agreement the Borrower and the Bank hereby
     agree that there shall be excluded from the Bank Security and in particular
     from the first floating charge over all the assets of the Borrower created
     by and in terms of Clause 2 (iii) of the Debenture the asset of the
     Borrower more particularly described in the Schedule hereto and that the
     Bank shall have no rights or interests in the said asset in terms of the
     Bank Security or otherwise.

2.   In so far as not hereby expressly waived or varied the Borrower and the
     Bank hereby confirm the terms and provisions of the Bank Security.

                            [PUBLIC RECORDER STAMP]

                  [PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]
<PAGE>   2

                                      - 2-

IN WITNESS     the    s   hereto have executed this Deed the day and year
first above written

The Common Seal of CAYMAN WATER      )
                                     )
COMPANY LIMITED was hereunto         )
                                     )
affixed by                           )    CAYMAN WATER COMPANY LIMITED
                                     )
and by                               )
                                     )
In the presence of:--                )    Per: /s/ L. Downer
                                               ------------------------------
                                     )                       Director
                                     )
                                     )
/s/                                  )    Per: /s/ Philip H. Lustig
-------------------------                      ------------------------------
Witness                                                      Secretary

SIGNED, SEALED and DELIVERED         )
                                     )
by VIVIAN GREENGRASS                 )
                                     )
the duly authorised attorney for     )
                                     )
the Bank in the presence of:--       )    THE ROYAL BANK OF CANADA
                                     )
                                     )
                                     )
                                     )
/s/                                       Per: /s/
-------------------------                      ------------------------------
Witness                                                Attorney for the Bank

                                    SCHEDULE
                                    --------

This is the Schedule referred to in the foregoing Second Deed:--

     MECO Model PD625OM3B Vapour Compression Diesel Powered Sea Water
     Conversion Unit which Unit includes a Cummins Model VT1710-635 Diesel
     Engine, (4) MECO Plate Coolers, Compressor, Heat Recovery Boiler
     Distilate, Feed Water and Blowdown Pumps NEMA 4 Electricals and Controls,
     Deaerator, Acid and Chemical Injection Equipment and instruments, all
     assembled on a (3) section skid.

[PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]
<PAGE>   3
                                      -3-

I.   Arthur B. Hunter of George Town, Grand Cayman make oath and say:-

1.   The foregoing Deed made between CAYMAN WATER COMPANY LIMITED ("the
     Borrower") of the one part and THE ROYAL BANK OF CANADA ("the Bank")
     of the other part was made by the Borrower and the Bank on the 10th day of
     March One Thousand Nine Hundred and Eighty Three.

2.   I was present and did see L. Dowher and P. Lustig Director and Secretary
     respectively of the Borrower affix the Common Seal of the Borrower to the
     said Deed and sign the same as and for the proper act and deed of the
     Borrower and execute acknowledge and deliver the said Deed for the purposes
     therein mentioned on the 10th day of March One Thousand Nine Hundred and
     Eighty Three between the hours of 9 and 10 in the forenoon at George Town,
     Grand Cayman, Cayman Islands.

3.   The Borrower has its registered office at George Town, Grand Cayman, Cayman
     Islands and is a company duly incorporated and existing under the Laws of
     the Cayman Islands.

4.   That the name           subscribed as a witness attesting to the due
     execution of the said Deed by the Borrower is of the proper handwriting of
     me this document and I reside at George Town, Grand Cayman and am an
     Attorney-at-Law.

                                                           -------------------
                                                           Witness

SWORN at George Town, Grand Cayman, Cayman Islands this 10th day of March One
Thousand Nine Hundred and Eighty Three before me:-

                                                           --------------------
                                                           Justice of the Peace

[PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]

<PAGE>   4
                                      -4-

I, Linda Ebanks of George Town, Grand Cayman, Cayman Islands make oath and
say:-

1.   The Foregoing Deed made between CAYMAN WATER COMPANY LIMITED ("the
     Borrower") of the one part and THE ROYAL BANK OF CAYMAN ("the Bank") of the
     other part was made by the Borrower and the Bank on the    day of One
     Thousand Nine Hundred and Eighty Three.

2.   I was present and did see Vivian Greengrass the duly authorized attorney
     for and on behalf of the Bank sign seal and as and for his proper act and
     did execute acknowledge and deliver the said Deed for the purposes therein
     mentioned on the 10th day of February One Thousand Nine Hundred and Eighty
     Three between the hours of 9:00 and 10:00 in the forenoon at George Town,
     Grand Cayman, Cayman Islands.

3.   The Bank is a banking corporation existing under the laws of Canada and
     having a branch officer in George Town, Grand Cayman, Cayman Islands.

4.   That the name Linda Ebanks subscribed as a witness attesting to the due
     execution of the said Deed by the Bank is of the proper handwriting of me
     this deponent and I reside at George Town, Grand Cayman, Cayman Islands and
     am a Secretary.

                                        /s/ Linda Ebanks
                                        --------------------------
                                        Witness

SWORN at George Town, Grand Cayman, Cayman Islands this 14th day of February
One Thousand Nine Hundred and Eighty Three before me:-

--------------------                    /s/
                                        ----------------------------
                                        Justice of the Peace

[PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]<PAGE>   1
                                                                  Exhibit 10.41

THIS THIRD DEED is made the 6  day of December  1984

BETWEEN      CAYMAN WATER COMPANY LIMITED, a Company incorporated and existing
             under the laws of the Cayman Islands with registered office in
             George Town, Grand Cayman, Cayman Islands, (hereinafter called "the
             Borrower") of the ONE PART

AND          THE ROYAL BANK OF CANADA of P.O. Box 245, George Town, Grand
             Cayman, Cayman Islands (hereinafter called "the Bank") of the
             OTHER PART

WHEREAS:-

(1)  This Deed is made supplemental to the Debenture ("the Debenture") dated 1
     June 1979 between the Borrower, the Bank, Philip H. Lustig ("Lustig") and
     Cayman Public Utilities Ltd. (CPU) as supplemented by Deed dated 30th
     April 1981 between the Borrower and the Bank and the Second Deed dated 10
     March 1983 between the Borrower and the Bank and to all collateral security
     documents and agreements executed pursuant thereto (hereinafter together
     called "the Bank Security").

(2)  The Bank has agreed at the request of the Borrower to exclude from the
     security created by the Bank Security certain assets of the Borrower.

NOW THIS DEED WITNESSETH as follows:-

1.  In consideration of the said agreement the Borrower and the Bank hereby
    agree that there shall be excluded from the Bank Security and in particular
    from the first floating charge over all the assets of the Borrower created
    by and in terms of Clause 2 (iii) of the Debenture and asset of the Borrower
    more particularly described in the Schedule hereto and that the Bank shall
    have no rights or interests in the said asset in terms of the Bank Security
    or otherwise.

2.  In so far as not hereby expressly waived or varied the Borrower and the Bank
    hereby confirm the terms and provisions of the Bank Security.

IN WITNESS WHEREOF the parties hereto have executed this Deed the day and year
first above written.

[PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]

<PAGE>   2
                                      -2-

The Common Seal of CAYMAN WATER  )   CAYMAN WATER COMPANY LIMITED

COMPANY LIMITED was hereunto     )   per /s/ Jeffrey M. Parker
affixed by Jeffrey M Parker      )      ------------------------------
and by                           )   per /s/ illegible
in the presence of:-             )      ------------------------------
________________________________ )
          Witness

Signed, sealed and delivered     )   THE ROYAL BANK OF CANADA
by                               )   per /s/ illegible
the duly authorised attorney for )      ------------------------------
the Bank in the presence of:-    )
________________________________ )
          Witness

                                    SCHEDULE

This is the Schedule referred to in the foregoing Third Deed:-

     MECO Model PD 7000M3B/C Vapor Compression Diesel powered sea water
     conversion unit which unit includes Cummins Model VT-17J0-P-635 12 cylinder
     diesel engine centurbo vapor compressor, heat exchangers, blow down,
     distillate and feed pumps, generator tower, chemical injection systems,
     piping, evaporator, automatic and manual controls, gauges and instruments
     complete with TARGA SYSTEM and 60 hp low pressure steam boiler with feed
     make-up system and tank assembly.

                                     [PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]

<PAGE>   3
                                      -3-

                                    PROBATE

I, PETER D. RIBBINS of George Town, Grand Cayman, make oath and say:-

1.   The foregoing Deed made between CAYMAN WATER COMPANY LIMITED ("the
     Borrower") of the one part and THE ROYAL BANK OF CANADA ("the Bank") of the
     other part was made by the Borrower and the Bank on the 6th day of December
     1984.

2.   I was present and did see JEFFREY M. PARKER and PHILLIP LUSTIG Director and
     Secretary respectively of the Borrower affix the Common Seal of the
     Borrower to the said Deed and sign the same as and for the proper act and
     deed of the Borrower and execute acknowledge and deliver the said Deed for
     the purposes therein mentioned on the 6th day of December 1984 between the
     hours of 10.00 and 12.00 in the fore noon at George Town, Grand Cayman,
     Cayman Islands.

3.   The Borrower has its registered office at George Town, Grand Cayman, Cayman
     Islands and is a company duly incorporated and existing under the Laws of
     the Cayman Islands.

4.   That the name PETER D. RIBBINS subscribed as a witness attesting to the due
     execution of the said Deed by the Borrower is of the proper handwriting of
     me this deponent and I reside at George Town, Grand Cayman and am a
     businessman.

SWORN at George Town, Grand Cayman )
this 6th day of December           )
1984, before me,                   )
                                   )
/s/                                )           /s/
-----------------------------------            ---------------------------------
Justice of the Peace

[PUBLIC RECORD OFFICE
 CAYMAN ISLANDS STAMP]

<PAGE>   4
                                      -4-

                                    PROBATE

I,                                of George Town, Grand Cayman, make oath and
say:-

1.   The foregoing Deed made between CAYMAN WATER COMPANY LIMITED ("the
     Borrower") of the one part and THE ROYAL BANK OF CANADA ("the Bank") of the
     other part was made by the Borrower and the Bank on the 6 day of December,
     1984.

2.   I was present and did see Vivian Greengrass the duly authorised attorney
     for and on behalf of the Bank sign, seal and as and for his proper act and
     deed execute acknowledge and deliver the said Deed for the purposes
     therein mentioned on the 20 day of December 1984 between the hours of 2:30
     and 5:00 in the afternoon at George Town, Grand Cayman, Cayman Islands.

3.   The Bank is a banking corporation existing under the Laws of Canada and
     having a branch office in George Town, Grand Cayman, Cayman Islands.

4.   That the name                          subscribed as a witness attesting to
     the due execution of the said Deed by the Bank is of the proper
     handwriting of me this deponent and I reside at South Sound Grand Cayman
     and am an Attorney-at-Law.

SWORN at George Town, Grand Cayman     )
Cayman Islands, this 3rd day of        )
January 1984, before me:-              )
                                       )        -----------------------
                                       )
------------------------------------   )
       Justice of the Peace

[PUBLIC RECORD OFFICE CAYMAN ISLANDS STAMP]

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