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                                  EXHIBIT 10.7

                              TREND MINING COMPANY
                                401 FRONT AVENUE
                                     SUITE 1
                           COEUR D'ALENE, IDAHO 83814

                                                                  March 12, 2001

Electrum LLC
Caledonian House
Grand Cayman
Cayman Islands
British West Indies

         Re:  LOAN FACILITY AND WARRANTS

Dear Sirs:

         Reference is made to that certain letter agreement (the "Letter
Agreement") dated December 6, 2000 by and between Trend Mining Company
("Trend") and Electrum LLC ("Electrum") relating to a loan facility. Terms
used herein, with respect to the Letter Agreement, shall have the same
meaning as used in the Letter Agreement. Reference is also made to that
certain Stock Purchase Agreement dated December 29, 1999 between Trend and
Tigris Financial Group Ltd. ("TFG"-TFG having assigned its interests therein
to Electrum on March 8, 2000), as amended by an agreement between Electrum
and Trend dated June 27, 2000 (collectively the "Stock Purchase Agreement").
Terms used herein with respect to the Stock Purchase Agreement shall have the
same meaning as used in the Stock Purchase Agreement.

         Trend has requested, and Electrum is inclined to accept Trend's
request to provide, an additional $50,000.00 U.S. to Trend (the "New Loan").
In providing the New Loan, and as consideration therefor, the following terms
and conditions shall apply:

         1. Trend agrees that all of the terms, provisions and conditions of the
         Letter Agreement shall apply to the New Loan as if it were part of the
         "Total Loan Amount" under the Letter Agreement and, from and after the
         date of Electrum making the New Loan, $50,000 shall be added to the
         Total Loan Amount and shall be and become thereafter a part of the
         "Total Loan Amount" under the Letter Agreement.

         2. The number of warrants to be granted by Trend under paragraph 4 of
         the Letter Agreement shall increase to 335,000 warrants at $1.50 per
         share.

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         3. The warrants granted to TFG, including Electrum, under paragraph 2.3
         of the Stock Purchase Agreement, the warrants granted under Section 4
         of the Letter Agreement and the warrants referred to in paragraph 2
         above shall each have expiration dates of September 30, 2006.

         4. Electrum's obligation to provide the New Loan, in addition to the
         conditions thereto set forth in the Letter Agreement, shall be further
         conditioned on the progress of Trend's current filings with the SEC
         [being an amendment to its Form 10-SB, File No. 0-31159 (filed December
         1, 2000), Form 10-KSB filed December 29, 2000 and Preliminary Proxy
         Materials filed December 21, 2000 (File No. 0-31159]; such progress to
         be determined by Electrum in its sole judgment. The New Loan may be
         called by Trend at any time prior to March 31, 2001.

         5. Trend covenants and agrees that the Total Loan Amount, as amended by
         paragraph 1 above, shall be repaid out of the first monies raised by
         Trend in any placement of its securities, before any other use is made
         of such funds and, upon a failure by Trend to carry of the terms of
         this provision, Electrum may declare the entire Total Loan Amount to be
         then immediately due and payable and shall have all rights and remedies
         available at law or in equity to a creditor with a defaulted loan.

         6. Trend and Electrum hereby amend the Stock Purchase Agreement
         effective as of July 31, 2000 to delete Section 2.2(d) thereof.

         Except as herein modified, in all other respects the Letter Agreement
and the Stock Purchase Agreement shall remain in full force and effect.

                                    Sincerely,

                                    TREND MINING COMPANY

                                    By:   /s/Kurt J. Hoffman
                                          -----------------------------
                                            Kurt J. Hoffman,
                                            President

                                    ELECTRUM LLC

                                    By:   /s/Thomas Kaplan
                                          ----------------
                                            Thomas Kaplan,
                                            Director<PAGE>

                                                                    EXHIBIT 10.3

                        AMENDMENT TO AMENDED AND RESTATED
                            1996 STOCK INCENTIVE PLAN

                                 MARCH 24, 2000

                  Clauses (a) and (b) of Section 1.2.2 of the Amended and
Restated 1996 Stock Incentive Plan are hereby amended in their entirety to read
as follows:

                  (a) to determine from among those persons eligible, the
         particular Eligible Persons who will receive Awards; provided that with
         respect to the grant of an option to an individual who is not an
         officer or director, the determination of an Eligible Employee and the
         number of shares to be covered by an option may be determined by the
         Chairman of the Board; and provided further, that (i) the maximum
         number of shares that may be granted under stock options by the
         Chairman of the Board in each fiscal year shall be limited to an
         aggregate amount determined by the Compensation Committee, (ii) options
         granted by the Chairman of the Board may only be granted pursuant to
         the standard and appropriate grant agreements of the Company, (iii) no
         grant shall be issued below Fair Market Value, and (iv) no grant shall
         be made retroactively.

                  (b) to grant Awards to Eligible Persons, determine the price
         at which securities will be offered or awarded and the amount of
         securities to be offered or awarded to any of such persons, and
         determine the other specific terms and conditions of such Awards
         consistent with the express limits of this Plan, and establish the
         installments (if any) in which such Awards shall become exercisable or
         shall vest, or determine that no delayed exercisability or vesting is
         required, and establish the events of termination or reversion of such
         Awards; provided that with respect to the grant of an option by the
         Chairman of the Board as permitted by Section 1.2.2(a), all of the
         actions described in this paragraph may be exercised by the Chairman of
         the Board, so long as such officer is serving as a director of the
         Corporation, If such grants are made by the Chairman of the Board, he
         shall place a memorandum in the records of the Compensation Committee
         setting forth the names of the person being granted options, the number
         of options, and the date of grant. All such grants shall be
         communicated in writing to the Compensation Committee on a monthly
         basis.<PAGE>   1
                                                                  Exhibit 10.7.3

                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

       This Agreement, made this 28th day of February, 2000, by and between THE
CONNECTICUT WATER COMPANY (hereinafter referred to as the "Employer") and
Michele G. DiAcri (hereinafter referred to as the "Employee").

WITNESSETH THAT:

         WHEREAS, the Employee is and will be rendering valuable services to the
Employer in her capacity as an executive officer, and

         WHEREAS, the Employer desires to ensure that it will have the benefit
of the Employee's services until she reaches retirement, and

         WHEREAS, the Employer wishes to assist the Employee in providing for
the financial requirements of the Employee in the event of her retirement,
disability or death.

         NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, the parties hereto agree as follows:

1. SUPPLEMENTAL RETIREMENT BENEFIT

         a. Normal or Deferred Retirement. If, upon or after the Employee's
attainment of age 65 and completion of 20 consecutive years of service with the
Employer, the Employee's employment shall be terminated and she shall be
eligible to receive a benefit under The Connecticut Water Company Employees'
Retirement Plan (hereinafter referred to as the "Retirement Plan"), the Employee
shall be entitled to receive pursuant to this Agreement a benefit having a value
equal to an annual benefit for her life of (a) 60% of the Employee's Average
Earnings reduced by (b) the annual benefit payable to the Employee under the
Retirement Plan in the form of a single life annuity for the life of the
Employee (whether or not the benefit under the Retirement Plan is actually paid
in such form) commencing at the same time as benefits hereunder.

         For purposes of the foregoing, "Average Earnings" shall have the
meaning set forth in the Retirement Plan, except that in determining Average
Earnings, Annual Earnings (as defined in the Retirement Plan) shall not be
limited to the OBRA '93 annual compensation limit.

         The calculation of the benefit set forth above, and of all other
benefits payable under this Agreement, shall be performed by the Committee under
the Retirement Plan, and the calculations and interpretations of such Committee
shall be final and binding on the parties hereto.

         b. Disability Benefit. If the Employee's employment shall be terminated
by a disability such that the Employee is considered eligible for a full
disability pension under
<PAGE>   2
the provisions of the Social Security Act, the Employee shall be entitled to
receive pursuant to this Agreement a benefit having a value equal to an annual
benefit for her life calculated in the manner set forth above; provided,
however, that a reduction factor of .72 shall be applied to such annual benefit
if the Employee's benefit commencement date precedes age 62 by more than 7
complete years. If such benefit shall commence to be paid between the ages of 55
and 62 such benefit shall be reduced by 4% for each complete year by which the
date of benefit commencement precedes the Employee's attainment of age 65.

         c. Absence of Other Benefits. No benefits shall be paid to the Employee
pursuant to this Agreement other than as provided above.

2. TERMS AND CONDITIONS OF BENEFIT. The annual lifetime benefit calculated in
accordance with Section 1 hereof shall be paid in monthly installments on the
first day of each month. Such installments shall commence to be paid on the
first such day which coincides with or follows the day upon which the Employee's
benefit under the Retirement Plan shall commence to be paid.

         The normal form in which the benefit hereunder shall be paid is, if the
Employee is unmarried, an annuity for the life of the Employee only and, if the
Employee is married, an annuity for the life of the Employee with the provision
that after the Employee's death, 50% of the annual benefit that was payable to
the Employee shall be continued to the Employee's surviving spouse for life (a
"Joint and Survivor Annuity"). The benefit payable as a Joint and Survivor
Annuity shall be calculated by applying to the benefit calculated in accordance
with Section 1 .a. or 1 .b. hereof, as appropriate, the factors for the 50%
contingent annuity option set forth in the Retirement Plan.

         Monthly installments of benefits shall cease to be paid as of the first
day of the month following the date of the Employee's death, unless a Joint and
Survivor Annuity was then in effect, in which event the installments shall cease
as of the first day of the month following the death of the Employee's surviving
spouse.

3. LIMITATION OF BENEFIT. If the Employee's employment shall be terminated for
cause involving fraud, dishonesty, moral turpitude, gross misconduct, gross
failure to perform her duties, or disclosure of secret or other confidential
information of the Employer to any competitor or to any person not authorized to
receive such information, neither the Employee, her spouse nor her estate shall
be entitled to receive any benefit under this Agreement.

4. ABSENCE OF FUNDING. Benefits payable pursuant to this Agreement shall not be
funded, and the Employer shall not be required to segregate or earmark any of
its assets for the benefit of the Employee, her spouse or her estate. Such
benefits shall not be subject in any manner to anticipation, alienation,
transfer or assignment by the Employee, her spouse or her estate, and any
attempt to anticipate, alienate, transfer or assign these benefits shall be
void. The Employee, her spouse or her estate shall have only a contractual right
against the Employer for the benefits hereunder. Notwithstanding the
<PAGE>   3
foregoing, in order to pay benefits pursuant to this Agreement, the Employer may
establish a grantor trust (hereinafter the "Trust") within the meaning of
Section 671 of the Internal Revenue Code of 1986, as amended. Some or all of the
assets of the Trust may be dedicated to providing benefits to the Employee, her
spouse or her estate pursuant to this Agreement, but, nevertheless, all assets
of the Trust shall at all times remain subject to the claims of the Employer's
general creditors in the event of the Employer's bankruptcy or insolvency.

5. MISCELLANEOUS.

         a. This Agreement may be amended at any time by mutual written
agreement of the parties hereto, but no amendment shall operate to give the
Employee, her spouse or her estate, either directly or indirectly, any interest
whatsoever in any funds or assets of the Employer, except the right to receive
the payments herein provided and the right to receive such payments from assets
held in the Trust.

         b. This Agreement shall not supersede any other contract of employment,
whether oral or in writing, between the Employer and the Employee, nor shall it
affect or impair the rights and obligations of the Employer and the Employee,
respectively, thereunder. Nothing contained herein shall impose any obligation
on the Employer to continue the employment of the Employee.

         c. This Agreement shall be construed in all respects under the laws of
the State of Connecticut.

         IN WITNESS WHEREOF, the Employer and the Employee have executed this
Agreement as of the day and year above written.

<TABLE>
<S>                                               <C>
EMPLOYEE                                          THE CONNECTICUT WATER COMPANY

/s/  Michele G. DiAcri                            /s/   Marshall T. Chiaraluce
----------------------                            ----------------------------
Michele G. DiAcri                                 Marshall T. Chiaraluce
                                                  President and CEO
</TABLE>

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