Document:

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EXHIBIT 4.27

Execution Copy

INSURANCE AGREEMENT

     INSURANCE AGREEMENT, dated November 30, 2005, between The Connecticut Water Company, (the
“Company”) and Financial Guaranty Insurance Company, a New York stock insurance company (“FGIC”).

     WHEREAS, pursuant to an Indenture of Trust, dated as of October 1, 2005 (the “Indenture”),
between Connecticut Development Authority (the “Issuer”) and U.S. Bank National Association as
trustee (the “Trustee”), the Issuer has issued $10,000,000 in aggregate principal amount of its
Water Facilities Revenue Bonds (The Connecticut Water Company Project – 2005A Series) (the
“Bonds”); and

     WHEREAS, the Company and the Issuer have entered into a Loan Agreement, dated as of October 1,
2005 (the “Loan Agreement”), pursuant to which the Company is obligated to make loan payments
sufficient to pay, among other items, debt service on the Bonds; and

     WHEREAS, FGIC has issued its Financial Guaranty Insurance Policy (the “Policy”), which insures
the scheduled payments of principal of and interest on the Bonds and payment of principal of and
interest on the Bonds upon a Determination of Taxability (as defined in the Indenture) as specified
in the Policy; and

     WHEREAS, the Company understands that FGIC expressly requires the delivery of this Agreement
as part of the consideration for the delivery by FGIC of the Policy;

     NOW, THEREFORE, in consideration of the premises and of the agreements herein contained and of
the execution and delivery of the Policy, the Company and FGIC agree as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.01. Definitions. Except as otherwise expressly provided herein or unless the
context otherwise requires, the terms that are capitalized herein shall have the meanings specified
in the Indenture unless otherwise defined in Annex A hereto.

ARTICLE II

PREMIUM AND REIMBURSEMENT OBLIGATIONS

OF THE COMPANY

     SECTION 2.01. Premium. In consideration of FGIC’s agreeing to issue the Policy hereunder, the
Company hereby agrees to pay FGIC the Premium at the times and in the amounts provided in the
Commitment. To the extent that any such payment of the Premium is not paid when due, interest
shall accrue on such unpaid amount at a rate equal to the Effective Interest Rate.

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     SECTION 2.02. Reimbursement Obligation. The Company agrees to reimburse Financial Guaranty,
from any available funds, immediately and unconditionally upon demand, for any Policy Payment. To
the extent that any such payment due hereunder is not paid when due, interest shall accrue on such
unpaid amounts at a rate equal to the Effective Interest Rate. Following any such Policy Payment,
the payment by the Company of the amount of principal of and/or interest on the obligations in
respect of which such Policy Payment shall have been made shall satisfy and discharge, to the
extent thereof, the corresponding obligations of the Company under this Section 2.02.

     SECTION 2.03. Unconditional Obligation. The obligations of the Company hereunder are absolute
and unconditional and will be paid or performed strictly in accordance with this Agreement,
irrespective of:

     (a) any lack of validity or enforceability of, or any amendment or other modification of, or
waiver with respect to the Bonds, the Indenture, the Loan Agreement or any other bond financing
document;

     (b) any exchange, release or nonperfection of any security interest in property securing the
Bonds, the Indenture, the Loan Agreement or this Agreement or any obligations hereunder;

     (c) any circumstances that might otherwise constitute a defense available to, or discharge of,
the Company with respect to the Bonds, the Indenture, this Agreement or the Loan Agreement; or

     (d) whether or not the obligations under the Bonds, the Indenture, this Agreement or the Loan
Agreement are contingent or matured, disputed or undisputed, liquidated or unliquidated.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     SECTION 3.01. Representations and Warranties of the Company.

     The Company makes the following representations as the basis for its undertakings herein
contained:

     (a) The Company is a Connecticut corporation organized and existing under the laws of the
State of Connecticut and has the power to enter into and has duly authorized, by proper action, the
execution and delivery of this Agreement and the Loan Agreement (collectively, the “Company
Documents”).

     (b) Neither the execution and delivery of any Company Document, the consummation of the
transactions contemplated hereby and thereby, nor the fulfillment of or compliance with the terms
and conditions hereof and thereof, conflicts with or results in a breach of any of the terms,
conditions or provisions of the Company’s organizational documents or of any material agreement or
instrument to which the Company is now a party or by which it is

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bound, or constitutes a default
(with due notice or the passage of time or both) under any of the foregoing, or results in the
creation or imposition of any prohibited lien, charge or encumbrance whatsoever upon any of the
property or assets of the Company under the terms of any material instrument or agreement to which
the Company is now a party or by which it is bound.

     (c) All certificates, approvals, permits and authorizations of applicable local governmental
agencies, the State of Connecticut and the federal government that are necessary (i) for the due
execution and delivery by the Company of, and the performance by the Company of its obligations
under, each Company Document and (ii) for the operation and use of the capital projects being
financed by the Bonds, in each case, have been obtained and continue in force, except, in the case
of clause (ii), for such certificates, approvals, permits and authorizations the failure of which
to obtain or to maintain in full force would not, individually or in the aggregate, materially and
adversely affect the financial condition, assets, properties or operation of the Company.

     (d) No event has occurred and no condition exists that would constitute an Event of Default
under the Loan Agreement or hereunder or to the Company’s knowledge the Indenture or that, with the
passing of time or with the giving of notice or both would become such an Event of Default.

     (e) The Company Documents have been executed and delivered by the Company and are the legal,
valid and binding obligations of the Company, enforceable against the Company in accordance with
its terms subject to laws with respect to bankruptcy and general principals of equity.

     (f) Except as disclosed in the Official Statement, dated October 28, 2005, delivered in
connection with the issuance of the Bonds, (i) there is no action, suit, proceeding or
investigation at law or in equity before or by any court or governmental agency or body pending or
to their knowledge threatened against or affecting the Company that seeks to restrain or enjoin the
issuance or delivery of the Bonds, or the collection of the payments to be made pursuant to the
Indenture, the Bonds or any Company Document or in any way contests or materially adversely affects
the validity of the Bonds, the Indenture or any Company Document or the resolutions of the Company
relating to the Bonds, or contests or affects the powers of the Company to enter into or perform
its obligations or consummate the transactions contemplated under any of the foregoing; and (ii)
the Company is not in default with respect to any order or decree of any court or any order,
regulation or demand of any federal, state, municipal or other governmental authority.

     (g) The financial statements of Connecticut Water Service, Inc. and its consolidated
subsidiaries as at December 31, 2004 and September 30, 2005 contained in Connecticut Water Service,
Inc.’s Annual Report on Form 10-K for the year ended December 31, 2004 as filed with the SEC on
March 30, 2005 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 as filed
with the SEC on November 9, 2005, respectively, present fairly in all material respects the
financial condition, results of operations and cash flows of Connecticut Water Service, Inc. and
have been prepared in conformity with generally accepted accounting principles applied on a
consistent basis throughout the periods involved (except as otherwise

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noted therein). Since
September 30, 2005 been no material adverse change in the financial condition, assets, properties
or operation of Connecticut Water Service, Inc.

ARTICLE IV

COVENANTS

     SECTION 4.01. Consolidation, Merger and Transfer of Mortgaged Property.

     (a) Restructuring, Merger, Consolidation, Reorganization. The Company (or any
subsequent obligor on the Note) shall not merge, consolidate, restructure or reorganize with an
entity without the prior written consent of FGIC, provided, however, the Company (or any subsequent
obligor on the Note) may merge, consolidate, restructure or reorganize with an entity without the
prior written consent of FGIC either if (a) the Company (or any subsequent obligor on the Note)
continues to exist after such merger, consolidation, restructuring or reorganization and (i) the
Company (or any subsequent obligor on the Note) remains a public utility regulated by the
appropriate regulatory body and (ii) the Company (or any subsequent obligor on the Note) remains
obligated to FGIC with respect to, and to make payments with respect to, the Bonds, the Note and
the Loan Agreement or (b) the Company (or any subsequent obligor on the Note) is not the surviving
entity after such merger, consolidation, restructuring or reorganization and (i) the surviving
entity is a public utility regulated by the appropriate regulatory body and (ii) the surviving
entity fully assumes all obligations to FGIC with respect to, and to make payments with respect to,
the Bonds, the Note and the Loan Agreement. Notwithstanding the foregoing, if as a result of the
merger, consolidation, restructuring or reorganization of the Company (or any subsequent obligor on
the Note) with an entity without the prior written consent of FGIC the unenhanced rating on the
Bonds is lower than investment grade by any Rating Agency then rating the Bonds or if any Rating
Agency then rating the unenhanced Bonds ceases to rate the unenhanced Bonds, all obligations to
FGIC with respect to, and all payments under, the Note and the Loan Agreement must be paid in full
and the Bonds must be fully redeemed in accordance with the Indenture.

     (b) Sale of Assets. The Company (or any subsequent obligor on the Note) may sell or
otherwise dispose of its assets without the consent of FGIC, provided, however, if the Company (or
any subsequent obligor on the Note) sells or otherwise disposes of an aggregate of 20% or more of
its assets, based on historical book value of the assets sold as determined as of the date of the
issuance of the Bonds, without the prior written consent of FGIC, and as a result of such sale and
disposition, the unenhanced rating on the Bonds is lower than investment grade by any Rating Agency
then rating the Bonds or if any Rating Agency then rating the unenhanced Bonds ceases to rate the
unenhanced Bonds, all obligations to FGIC with respect to, and all payments
under, the Note and the Loan Agreement must be paid in full and the Bonds must be fully
redeemed in accordance with the Indenture.

     (c) Upon the occurrence of an event specified in section 4.01 (a) or (b) the Company shall
deliver to FGIC a certificate of the president or any vice president and an opinion of counsel
acceptable to FGIC, each stating that such occurrence complies with this Section 4.01.

     (d) Upon the occurrence of an event specified in section 4.01 (a) or (b) the successor entity
formed by such occurrence shall succeed to, and be substituted for, and may exercise

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every right
and power of, the Company under this Agreement with the same effect as if such successor had been
named as the Company herein, and thereafter, the predecessor entity shall be relieved of all
obligations and covenants hereunder.

     SECTION 4.02. Restrictions on Liens and Sale and Leaseback Transactions.

     (a) For so long as the Bonds are outstanding and FGIC has fully performed all of its
obligations under the Policy, the Company will not, nor will it permit any Significant Subsidiary
to, (1) issue, incur, assume or permit to exist any Debt, if such Debt is secured by a Lien on any
Principal Property (whether such Principal Property is now owned or hereafter acquired), unless the
Company provides that the Bonds will be equally and ratably secured with such secured Debt or (2)
incur or permit to exist any Attributable Debt in respect of Principal Property; provided, however,
that the foregoing restriction shall not apply to:

     (i) to the extent the Company or any Significant Subsidiary consolidates with, or
merges with or into, another entity, Liens on the property of such entity securing Debt in
existence on the date of such consolidation or merger, provided that such Debt and Liens
were not created or incurred in anticipation of such consolidation or merger and that such
Liens do not extend to cover any Principal Property;

     (ii) Liens existing on property hereafter acquired at the time of such acquisition, as
long as the Lien was not created or incurred in anticipation thereof and does not extend to
or cover any other Principal Property;

     (iii) Liens of any kind, including purchase money Liens, conditional sales agreements
or title retention agreements and similar agreements, upon any property acquired,
constructed, developed or improved by the Company or any Significant Subsidiary (whether
alone or in association with others) which do not exceed the cost or value of the property
acquired, constructed, developed or improved and which are created prior to, at the time of,
or within 12 months after such acquisition (or in the case of property constructed,
developed or improved, within 12 months after the completion of such construction,
development or improvement and commencement of full commercial operation of such property,
whichever is later) to secure or provide for the payment of any part of the purchase price
or cost thereof; provided that the Liens shall not extend to any Principal Property other
than the property so acquired, constructed, developed or improved;

     (iv) Liens in favor of the United States, any state or any foreign country or any
department, agency or instrumentality or political subdivision of any such jurisdiction to
secure payments pursuant to any contract or statute or to secure any indebtedness incurred
for the purpose of financing all or any part of the purchase price or cost of constructing
or improving the property subject to such Lien, including Liens related to governmental
obligations the interest on which is tax-exempt under Section 103 of the Internal Revenue
Code or any successor section of the Internal Revenue Code;

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     (v) Liens in favor of the Company, one or more Significant Subsidiaries of the Company,
one or more wholly-owned Subsidiaries of the Company or any of the foregoing combination;
and

     (vi) replacements, extensions or renewals (or successive replacements, extensions or
renewals), in whole or in part, of any Lien, or of any agreement, referred to above in
clauses (i) through (v) inclusive, or replacements, extensions or renewals of the Debt
secured thereby (to the extent that the amount of Debt secured by any such Lien is not
increased from the amount originally so secured, plus any premium, interest, fee or expenses
payable in connection with any replacements, refundings, refinancings, remarketings,
extensions or renewals); provided that such replacement, extension or renewal is limited to
all or a part of the same property (plus improvements thereon or additions or accessions
thereto) that secured the Lien replaced, extended or renewed.

     (b) Notwithstanding the restriction in subsection (a) of this Section 4.02, the Company or any
Significant Subsidiary may (1) issue, incur or assume Debt secured by a Lien not described in
clauses (i) through (vi) of subsection (a) above on any Principal Property now or hereafter owned
without providing that the Bonds be equally and ratably secured with such Debt and (2) issue or
permit to exist Attributable Debt in respect of Principal Property, in either case so long as the
aggregate amount of such secured Debt and Attributable Debt, together with the aggregate amount of
all other Debt secured by Liens not described in clauses (i) through (vi) of subsection (a) above
then outstanding and all other Attributable Debt, does not exceed 10% of the Net Tangible Assets of
the Company, as determined by the Company as of a month end not more than 90 days prior to the
closing or consummation of the proposed transaction.

     (c) For purposes of determining compliance with this Section 4.02, in the event that any Lien
at any time meets the criteria of more than one of the categories described in clauses (i) through
(vi) above of Section 4.02(a), or is entitled to be created pursuant to Section 4.02(b), the
Company will be permitted to classify (and later reclassify) in whole or in part in its sole
discretion such Lien in any manner that complies with this Section 4.02.

     (d) For purposes of determining compliance with any Dollar-denominated restriction on the
incurrence of Debt secured by Liens on Principal Property, the Dollar-equivalent principal amount
of Debt denominated in a foreign currency will be calculated based on the relevant currency
exchange rate in effect on the date such Debt was incurred, in the case of term Debt, or first
committed, in the case of revolving credit Debt; provided that if such Debt is incurred to
refinance other Debt denominated in the same foreign currency, and such refinancing would cause the
applicable Dollar-denominated restriction to be exceeded if calculated at the relevant currency
exchange rate in effect on the date of such refinancing, the Dollar-denominated
restriction will be deemed not to have been exceeded so long as the principal amount of the
refinancing Debt does not exceed the principal amount of the Debt being refinanced.
Notwithstanding any other provision of this Section 4.02, the maximum amount of Debt secured by
Liens on Principal Property that the Company or any Significant Subsidiary may incur pursuant to
this covenant will not be deemed to be exceeded solely as a result of fluctuations in the exchange
rate of currencies.

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     (e) Except as provided in Section 4.02 hereof, while there are any Bonds Outstanding or any
reimbursement obligations owed to FGIC, without the prior written consent of Financial Guaranty,
the Company will not permit, create, assume or suffer to be created or to exist any mortgage, lien,
security interest, or encumbrance of any kind, upon, or pledge of, any of the Company’s properties
of any character, including real, personal, tangible and intangible properties and revenues, now
owned or hereafter acquired, to secure any indebtedness without providing that the Bonds and the
reimbursement obligations hereunder have the same security.

     SECTION 4.03. Liquidity Facility. If at any time the Bonds are converted into a mode, other
than a long-term mode longer than five years or an auction mode, the Company shall provide a
Liquidity Facility to support the Bonds. The Liquidity Facility and the Liquidity Provider shall
satisfy the terms set forth in Annex B hereto or shall otherwise be subject to the prior written
approval of FGIC.

ARTICLE V

EVENTS OF DEFAULT; REMEDIES

     SECTION 5.01. Events of Default. The following events shall constitute Events of Default
hereunder:

     (a) The Company shall fail to pay to FGIC any amount payable under Section 2.02 or 7.01
hereof and such failure shall have continued for a period in excess of ten days after receipt by
the Company of written notice thereof;

     (b) Any representation or warranty made by the Company hereunder or under any other Company
Document or any statement in the application for the Policy or any written report, certificate,
financial statement or other instrument provided in connection with the Commitment, the Policy, or
any Company Document shall have been materially false at the time when made;

     (c) Except as otherwise provided in this Section 5.01, the Company shall fail to perform any
of its other obligations hereunder, provided that such failure continues for more than thirty days
after receipt by the Company of written notice of such failure to perform;

     (d) The Company shall (i) voluntarily commence any proceeding or file any petition seeking
relief under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy,
insolvency or similar law, (ii) consent to the institution of, or fail to controvert in a timely
and appropriate manner, any such proceeding or the filing of any such petition, (iii) apply for or
consent to the appointment of a receiver, paying agent, custodian, sequestrator or similar official
for the Company or for a substantial part of its property, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) become unable, admit in writing its inability or
fail generally to pay its debts as they become due; or

     (e) An involuntary proceeding shall be commenced or an involuntary petition shall be filed in
a court of competent jurisdiction seeking (i) relief in respect of the Company, or of a substantial
part of its property, under the United States Bankruptcy Code or any other Federal,

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state or
foreign bankruptcy, insolvency or similar law or (ii) the appointment of a receiver, paying agent,
custodian, sequestrator or similar official for the Company or for a substantial part of its
property; and such proceeding or petition shall continue undismissed for forty-five (45) days or an
order or decree approving or ordering any of the foregoing shall continue unstayed and in effect
for thirty (30) days.

     SECTION 5.02. Remedies. If an Event of Default shall occur and be continuing, then FGIC may
take whatever action at law or in equity may appear necessary or desirable, including, without
limitation, legal action for the specific performance of any covenant made by the Company herein
and any financing document and, to the extent applicable, the pursuit of remedies available under
the Bonds, and the Loan Agreement to collect the amounts then due under this Agreement, or to
enforce performance and observance of any obligation, agreement or covenant of the Company under
the Company Documents or under the Bonds. All rights and remedies of FGIC under this Section 5.02
are cumulative and the exercise of any one remedy does not preclude the exercise of one or more of
the other available remedies under the Company Documents, the Bonds, under the Indenture or any
other financing document, or now or hereafter existing at law or in equity. No delay or omission
to exercise any right or power accruing under the Company Documents, the Bonds, under the Indenture
or any other financing document, or otherwise, upon the happening of any event set forth in Section
5.01, shall impair any such right or power or shall be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be deemed expedient.
In order to entitle FGIC to exercise any remedy reserved to FGIC in this Article, it shall not be
necessary to give any notice, other than such notice as may be required by this Article.

ARTICLE VI

SETTLEMENT

     Financial Guaranty shall have the exclusive right to decide and determine whether any claim,
liability, suit or judgment made or brought against Financial Guaranty on the Policy (a “Policy
Claim”), shall or shall not be paid, compromised, resisted, defended, tried or appealed, and
Financial Guaranty’s decision thereon, if made in good faith, shall be final and binding upon the
Company. An itemized statement of payments made by Financial Guaranty, certified by an officer of
Financial Guaranty, or the voucher or vouchers for such payments, shall be prima facie evidence of
the liability of the Company.

ARTICLE VII

MISCELLANEOUS

     SECTION 7.01. Reimbursement of Costs and Expenses; Payments Generally (a)

The Company shall pay or reimburse FGIC for any and all charges, fees, costs, and expenses
(including reasonable attorney’s fees) that FGIC may reasonably pay or incur in connection with the
following: (i) the administration, enforcement, defense, or preservation of any rights or security
hereunder or under any other transaction document; (ii) the pursuit of any remedies hereunder,
under any other transaction document, or otherwise afforded by law or equity, (iii) any amendment,
waiver, or other action hereunder or with respect to or related to any transaction document whether
or not executed or completed; (iv) the violation by the Company

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of any law, rule, or regulation or
any judgment, order or decree applicable to it; (v) any advances or payments made by FGIC to cure
defaults of the Company under the transaction documents; or (vi) any litigation or other dispute in
connection with this Agreement or any other transaction document, or the transactions contemplated
hereby or thereby, other than amounts resulting from the failure of the FGIC to honor its payment
obligations under the Policy. FGIC reserves the right to charge a reasonable fee as a condition to
executing any amendment, waiver, or consent proposed in respect of any transaction document. The
obligations of the Company to FGIC shall survive discharge and termination of the transaction
documents. The Company’s obligations under this Section 7.01 shall be unconditional and shall be
paid promptly upon receipt by the Company of demand therefor.

     (b) If any payment hereunder is specified to be made on a date that is not a Business Day,
then such payment shall be made on the Business Day next succeeding the date originally specified
for such payment.

     SECTION 7.02. Indemnification; Limitation of Liability. (a) In addition to any and all rights
of indemnification or any other rights of FGIC pursuant hereto or under law or equity or under any
financing document, the Company and any successors thereto agree to pay, and to protect, indemnify
and save harmless, FGIC and its officers, directors, shareholders, employees, and agents, from and
against any and all claims, losses, liabilities (including penalties), actions, suits, judgments,
demands, damages, costs or reasonable expenses, including, without limitation, reasonable fees and
expenses of attorneys, consultants and auditors and reasonable costs of investigations or
obligations whatsoever paid by FGIC (herein collectively referred to as “Liabilities”) of any
nature arising out of or relating to the transactions contemplated by the financing documents by
reason of:

     (i) any untrue statement or alleged untrue statement of a material fact contained in
the offering document or in any amendment or supplement thereto or arising out of or based
upon any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except insofar as such
Liabilities arise out of or are based upon any such untrue statement or omission or
allegation thereof based upon information which describes FGIC in the offering document set
forth under the caption “Bond Insurance”, or in the financial statements of FGIC, including
any information in any amendment or supplement to the offering document furnished by FGIC in
writing expressly for use therein that amends or supplements such information;

     (ii) to the extent not covered by clause (i) above, any act or omission of the Company
in connection with the offering, issuance, sale or delivery of the Bonds other
than by reason of false or misleading information provided by FGIC in writing for
inclusion in the offering document as specified in clause (i) above or the allegation
thereof;

     (iii) the misfeasance or malfeasance of, or negligence or theft committed by, any
director, officer, employee or agent of any of the Company; and

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     (iv) any claim by any party other than the parties to be indemnified under this Section
7.02 arising out of any Event of Default under the Company Documents.

     (b) This indemnity provision shall survive the termination of this Agreement and shall survive
until the statute of limitations has run on any causes of action which arise from one of these
reasons and until all suits filed as a result thereof have been finally concluded. Any party which
proposes to assert the right to be indemnified under this Section 7.02 will promptly after receipt
of notice of commencement of any action, suit or proceeding against such party in respect of which
a claim is to be made against the Company under this Section 7.02, shall notify the Company of the
commencement of such action, suit or proceeding, enclosing a copy of all papers served. In case
any action, suit or proceeding, shall be brought against any indemnified party and it shall notify
the Company of the commencement thereof, the Company shall be entitled to participate in, and, to
the extent that it shall wish, to assume the defense thereof, with counsel satisfactory to such
indemnified party, and after notice from the Company to such indemnified party of its election so
to assume the defense thereof, the Company shall not be liable to such indemnified party for any
legal expenses other than reasonable costs of investigation subsequently incurred by such
indemnified party in connection with the defense thereof. The indemnified party shall have the
right to employ its counsel in any such action the defense of which is assumed by the Company in
accordance with the terms of this subsection (b), but the fees and expenses of such counsel shall
be at the expense of such indemnified party unless the employment of counsel by such indemnified
party has been authorized by the Company, or unless there is a conflict of interest. The Company
shall not under any circumstances be liable for any settlement of any action or claim effected
without its prior written consent.

     SECTION 7.03. Exercise of Rights. No failure or delay on the part of FGIC to exercise any
right, power or privilege under this Agreement and no course of dealing between FGIC the Company or
any other party shall operate as a waiver of any such right, power or privilege, nor shall any
single or partial exercise of any such right, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. The rights and remedies
herein expressly provided are cumulative and not exclusive of any rights or remedies which FGIC
would otherwise have pursuant to law or equity. No notice to or demand on any party in any case
shall entitle such party to any other or further notice or demand in similar or other
circumstances, or constitute a waiver of the right of the other party to any other or further
action in any circumstances without notice or demand.

     SECTION 7.04. Amendment and Waiver. Any provision of this Agreement may be amended, waived,
supplemented, discharged or terminated only with the prior written consent of the Company and FGIC.
The Company hereby agrees that upon the written request of the Trustee,
Financial Guaranty may make or consent to issue any substitute for the Policy to cure any
ambiguity or formal defect or omission in such Policy which does not materially change the terms of
such Policy or adversely affect the rights of the Holders, and this Agreement shall apply to such
substituted Policy. Financial Guaranty agrees to deliver to the Company and to the company or
companies, if any, rating the Bonds, a copy of such substituted Policy.

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     SECTION 7.05. Payments. The payments due by the Company under the Note and the Loan
Agreement shall be structured such that moneys are deposited with the Bond Trustee five days in
advance of debt service payments on the Bonds Insured.

     SECTION 7.06. Successors and Assigns; Descriptive Headings. This Agreement shall bind, and
the benefits thereof shall inure to, the Company and FGIC and their respective successors and
assigns, so long as any Indenture is in full force and effect. Except pursuant to an event
specified in Article IV herein neither the Company nor FGIC may transfer or assign any or all of
its rights and obligations hereunder without the prior written consent of the other party hereto
and any such transfer or assignment without such written consent shall be void.

     The descriptive headings of the various provisions of this Agreement are inserted for
convenience of reference only and shall not be deemed to affect the meaning or construction of any
of the provisions hereof.

     SECTION 7.07. Waiver. The Company waives any defense that this Agreement was executed
subsequent to the date of the Policy, admitting and covenanting that such Policy was executed
pursuant to the Company’s request and in reliance on the Company’s promise to execute this
Agreement.

     SECTION 7.08. Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes any and all prior
agreements and understandings of the parties hereto with respect to the subject matter hereof,
including but not limited to the Commitment.

     SECTION 7.09. Notices, Requests, Demands. Except as otherwise expressly provided herein, all
written notices, requests, demands or other communications to or upon the respective parties hereto
shall be deemed to have been given or made when actually received, or in the case of telecopier
notice sent over a telecopier machine owned or operated by a party hereto, when sent, with
confirmation of receipt, addressed as specified below or at such other address as either of the
parties hereto may hereafter specify in writing to the other:

	 	 	 
	If to the Company:

	 	The Connecticut Water Company
	 

	 	93 West Main Street
	 

	 	Clinton, Connecticut 06413
	 

	 	Attention: Vice President – Finance
	 

	 	and Chief Financial Officer
	 

	 	Fax No.: 860-669-9326
	If to FGIC:
	 	 
	 
	 	 
	 

	 	Financial Guaranty Insurance Company
	 

	 	125 Park Avenue
	 

	 	New York, New York 10017
	 

	 	Attention: Manager, Global Utilities
	 

	 	Fax No.: 212-312-3093

- 11 -

 

EXHIBIT
4.27

     SECTION 7.10. Survival of Representations and Warranties. All representations, warranties and
obligations contained herein shall survive the execution and delivery of this Agreement and the
Policy.

     SECTION 7.11. Governing Law. This Agreement and the rights and obligations of the parties
under this Agreement shall be governed by and construed and interpreted in accordance with the laws
of the State of New York.

     SECTION 7.12. Counterparts. This Agreement may be executed in any number of copies and by the
different parties hereto on the same or separate counterparts, each of which shall be deemed to be
an original instrument. Complete counterparts of this Agreement shall be lodged with the Company
and FGIC.

     SECTION 7.13. Severability. In the event any provision of this Agreement shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate
or render unenforceable any other provision hereof.

     SECTION 7.14. Parties Interested Herein. Nothing in this Agreement expressed or implied is
intended or shall be construed to confer upon, or to give or grant to, any person or entity, other
than the Company and Financial Guaranty, any right, remedy or claim under or by reason of this
Agreement or any covenant, condition or stipulation hereof, and all covenants, stipulations,
promises and agreements in this Agreement contained by and on behalf of the Company shall be for
the sole and exclusive benefit of the Company and Financial Guaranty.

     SECTION 7.15. Term. This Agreement shall expire upon the later of (i) the expiration of the
Policy in accordance with the terms thereof, or (ii) the repayment in full to Financial Guaranty of
any amounts due and owing to it by the Company under this Agreement or the Policy.

- 12 -

 

EXHIBIT
4.27

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	THE CONNECTICUT WATER COMPANY
	 
	 	 	 	 	 	 
	 	 	By	 	/s/ David C. Benoit
	 	 	 	 	 
	 	 	 	 	Name: David C. Benoit
	 

	 	 	 	 	 	     Vice President – Finance and Chief
	 

	 	 	 	 	 	     Financial Officer
	 
	 	 	 	 	 	 
	 	 	FINANCIAL GUARANTY INSURANCE
	 	 	COMPANY
	 
	 	 	 	 	 	 
	 	 	By	 	/s/ Paul R. Morrison
	 	 	 	 	 
	 	 	 	 	Paul R. Morrison
	 	 	 	 	Managing Director, International and Global
	 	 	 	 	      Utilities

- 13 -

 

EXHIBIT
4.27

ANNEX A

DEFINITIONS

     For all purposes of this Agreement, except as otherwise expressly provided herein or unless
the context otherwise requires, all capitalized terms used herein and not otherwise defined shall
have the same meaning as in the Indenture, and all other capitalized terms shall have the meaning
as set out below.

     “Agreement” means this Insurance Agreement.

     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction, including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in
such transaction, determined in accordance with generally accepted accounting principles.

     “Bonds” has the meaning set forth in the first recital of this Agreement.

     “Commitment” means that certain letter, dated March 17, 2005 as amended on October 5, 2005 and
on November 18, 2005, between the Company and FGIC.

     “Company” has the meaning set forth in the first paragraph of this Agreement.

     “Company Documents” has the meaning set forth in Article III (a).

     “Debt” means (A) indebtedness of the Company or a Significant Subsidiary for borrowed money
evidenced by a bond, debenture, note or other written instrument or agreement by which the Company
or a Significant Subsidiary is obligated to repay such borrowed money and (B) any guaranty by the
Company or a Significant Subsidiary of any such indebtedness of another Significant Subsidiary.
“Debt” does not include, among other things, (w) indebtedness of the Company or a Significant
Subsidiary under any installment sale or conditional sale agreement or any other agreement relating
to indebtedness for the deferred purchase price of property or services, or (x) any trade
obligation (including obligations under power or other commodity purchase agreements and any hedges
or derivatives associated therewith), or other obligations of the Company or a Significant
Subsidiary in the ordinary course of business, (y) obligations of the Company or a Significant
Subsidiary under any lease agreement (including any lease intended as security), whether or not
such obligations are required to be capitalized on the balance sheet of the Company or a
Significant Subsidiary under generally accepted accounting principles.

     “Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United
States of America as at the time shall be legal tender for the payment of public and private debts.

     “Effective Interest Rate” means the lesser of the (i) the prime rate announced from time to
time by Citibank, N.A., or (ii) the maximum rate of interest permitted by then applicable law.

A-1

 

EXHIBIT
4.27

     “Event of Default” shall mean the events of default set forth in Section 5.01 of this
Agreement.

     “Holder” or “Holders” means the Person in whose name a Bond is registered on the books kept
and maintained by the Trustee for registration and transfer of the Bonds.

     “Indenture” has the meaning set forth in the first recital of this Agreement.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended, or any successor
federal statute.

     “Lien” means any mortgage, deed of trust, pledge, security interest, encumbrance, easement,
lease, reservation, restriction, servitude, charge or similar right and any other lien of any kind,
including, without limitation, any conditional sale or other title retention agreement, any lease
in the nature thereof, and any defect, irregularity, exception or limitation in record title or,
when the context so requires, any lien, claim or interest arising from any of the foregoing.

     “Loan Agreement” has the meaning set forth in the second recital of this Agreement.

     “Net Tangible Assets” means the total amount of the Company’s assets determined on a
consolidated basis in accordance with generally accepted accounting principles as of a date
determined pursuant to Section 4.02, less (i) the sum of the Company’s consolidated current
liabilities determined in accordance with generally accepted accounting principles, and (ii) the
amount of the Company’s consolidated assets classified as intangible assets, determined in
accordance with generally accepted accounting principles, including, but not limited to, such items
as goodwill, trademarks, trade names, patents, and unamortized debt discount and expense and
regulatory assets carried as an asset on the Company’s consolidated balance sheet.

     “Policy Claim” has the meaning set forth in Article VI.

     “Policy Payment” means any payment by FGIC pursuant to the terms of the Policy.

     “Premium” means the premium described in the Commitment and payable by the Company to FGIC
pursuant to Section 2.01 hereof.

     “Principal Property” means any property of the Company or any Significant Subsidiary, as
applicable.

     “Significant Subsidiary” shall have the meaning specified in Rule 1-02(w) of Regulation S-X
under the Securities Act of 1933, as amended.

A-2

 

EXHIBIT
4.27

ANNEX B

LIQUIDITY FACILITY REQUIREMENTS

	1.	 	Liquidity Provider Credit Ratings: The provider (the “Provider”) of a liquidity facility
(the “Facility”) to be used to pay the purchase price of tendered variable rate bonds (the
“Bonds”) shall be rated by both Moody’s Investors Service (“Moody’s”) and Standard & Poor’s
Ratings Services (“S&P”), and shall be of sufficient strength to cause the short-term ratings
for the Bond issue to be A-1+ by S&P and VMIG-1 by Moody’s. Financial Guaranty will not
deliver its bond insurance policy (the “Policy”) until such rating or ratings have been
released. Any Provider whose long-term rating drops below A- (S&P) or A3 (Moody’s) shall be
replaced at the request of Financial Guaranty.
	 
	2.	 	Initial Term of Facility: Minimum initial term of 364 days is acceptable so long as the
notice of non-renewal (Section 9 hereof) provides adequate time for the Issuer to find a
substitute facility and the authorizing document mechanics in the event of non-renewal provide
for the Bonds to be tendered and the Facility to be drawn upon before expiration of the
Facility.
	 
	3.	 	Renewals and Amendments: Any renewal on terms not identical to the terms of the initial (or
then renewing) Facility, or with a different Provider, shall be subject to the prior written
consent of Financial Guaranty. Financial Guaranty shall be provided with notice (and a copy)
of all Facility renewals, amendments and supplements.
	 
	4.	 	(a) Immediate Termination Events. Upon the occurrence of only the following events, the
Provider may terminate the Facility prior to the stated expiration date thereof without
offering Bondholders one last opportunity to tender the Bonds to the Provider for purchase:

	 	(i)	 	Policy Default. Failure by Financial Guaranty to pay
principal and interest when, as and in the amounts required under the Policy,
including interest at the “bank rate” due the Provider on disbursements under
the Facility if such amount is included as interest on the Bonds under the
terms of the Bonds;
	 
	 	(ii)	 	Payment Default Under Other Insurance. Any default by
Financial Guaranty in making payment when, as and in the amounts required to be
made pursuant to the express terms and provisions of any other municipal bond
insurance policy or surety bond issued by Financial Guaranty;
	 
	 	(iii)	 	Nullity of Policy. The Policy for any reason ceases
to be in full force and effect or is declared by a court of competent
jurisdiction to be null and void, or Financial Guaranty denies that it has any
further liability under the terms thereof; or
	 
	 	(iv)	 	Insolvency Proceeding Against Financial Guaranty. A
proceeding has been instituted in a court having jurisdiction in the premises
seeking an

B-1

 

EXHIBIT
4.27

	 	 	 	order for relief, rehabilitation, reorganization, conservation, liquidation
or dissolution in respect of Financial Guaranty under the Insurance Law of
the State of New York or any successor provision thereto and such proceeding
is not terminated for a period of 60 consecutive days or such court enters
an order granting the relief sought in such proceeding.

	 	(b)	 	Termination Event Requiring “One Last Put” Opportunity. Upon the occurrence of
only the following events, the Provider may terminate the Facility prior to the stated
expiration date thereof but must provide Bondholders with one last opportunity to
tender their Bonds to the Provider for purchase prior to termination:

	 	(i)	 	The financial strength rating assigned to Financial Guaranty or
the rating assigned to securities insured by Financial Guaranty, as applicable,
is withdrawn, suspended or reduced to A, A2 or A, or below by any two of S&P,
Moody’s or Fitch, respectively.
	 
	 	(ii)	 	Failure of the Issuer to pay the Provider commitment fees for the Facility.

	 	(c)	 	No Other Termination Events. The only events permitting termination of the
Facility by the Provider prior to its stated expiration date are as specified in 4(a)
and 4(b) above. In particular, neither failure by the issuer to comply with any
covenants made by it in the Facility nor breach by the issuer of any representation or
warranty made by it in the Facility nor continuation of such failure or breach
following receipt by the issuer of notice thereof is a permissible event of
termination. The sole remedy allowed to the Provider upon such an event of default
shall be the ability to sue for specific performance.
	 
	 	(d)	 	Events Permitting Acceleration. Upon the occurrence of an event described in
4(a), the Provider may tender its Bonds to the issuer for immediate repurchase, and no
limitations shall be imposed on the exercise by the Provider of any remedies available
to it against the issuer (e.g., causing the issuer to accelerate its loan to the
ultimate borrower of Bond proceeds) should the issuer default on any such repurchase
obligation to the Provider.

	5.	 	Conditions to Effectiveness of Facility:

	 	(a)	 	As a condition to closing, Financial Guaranty may be required to provide its
customary enforceability and disclosure opinion with respect to the Policy.
	 
	 	(b)	 	As a condition to the issuance of the Policy, an opinion of counsel to the
Provider (including a separate opinion of foreign counsel in the case of a U.S. branch
of a foreign bank) regarding corporate matters, validity, enforceability and such other
matters as Financial Guaranty shall require, shall be addressed to (or shall be the
subject of a reliance letter addressed to) Financial Guaranty.

B-2

 

EXHIBIT
4.27

	6.	 	Form of Liquidity Facility: Either a letter of credit or a standby bond purchase
agreement shall be acceptable.

	7.	 	Parity Payments: (Applicable for revenue bond issues) The Facility shall provide that only
the following amounts are payable on a parity with principal of and interest on the Bonds: (i)
the Provider’s periodic commitment fee and (ii) interest on the Bonds held by the Provider
calculated at the “provider rate.” All other amounts (e.g., “increased obligation of the
debtor enforceable in accordance with its terms costs,” uninsured “claw-back” amount, penalty
interest charges and indemnification amounts) shall be payable on a subordinated basis to
payment of principal and interest on the Bonds, replenishment of any debt service reserve fund
and payment of the fees of the trustee or paying agent for the Bonds (herein, the “Trustee”),
and both the Facility and the authorizing document for the Bonds shall specifically so
provide.
	 
	8.	 	Increased Costs: Any “increased costs” payable by the issuer pursuant to the Facility shall
be subordinated to the payment of principal and interest on the Bonds, replenishment of any
debt service reserve fund and payment of the fees of the Trustee, and the Facility shall
expressly so provide. The Facility shall limit “increased costs” to increases in costs to the
Provider or any participant of its obligations under the Facility as the result of the
imposition, increase or applicability of any reserve, special deposit, capital adequacy or
similar requirement against the obligations of the Provider or any participant under the
Facility (other than as a result of the acts, omissions or financial condition of the Provider
or such participant) due to any change in any law or regulation or in the interpretation
thereof by any court or administrative or governmental authority charged with the
administration thereof.
	 
	9.	 	Notice of Non-Renewal: The Provider shall be required to give not less than 30 days’ notice
to the Trustee and Financial Guaranty before the Trustee under the authorizing document is
required to give Bondholders notification to tender Bonds as a result of a non-renewal
(“Non-Renewal Mandatory Tender”). (If the Trustee is required to send out a Mandatory Tender
Notice 30 days prior to the Facility termination, the Provider will be required to give the
Trustee notice of non-renewal 60 days prior to the expiration date of the Facility of its
intention not to renew or extend the Facility.) Early termination pursuant to paragraph 4(b)
above requires the same timing notification as described above. Early termination pursuant to
paragraph 4(a) above requires no prior notice.
	 
	10.	 	Certain Mandatory Conversions to Fixed Rate: The Trustee shall commence the process required
by the authorizing document to effect a mandatory conversion of the interest rate on the Bonds
to a fixed rate (sufficient to accomplish the complete remarketing at par of all Bonds then
held by the Provider) on or as soon as practicable after the termination date of the Facility,
in the case of a termination pursuant to paragraph 4(a) or 4(b) and a Non-Renewal Mandatory
Tender:
	 
	 	 	If such a remarketing cannot be effected, the Bonds shall continue to bear interest at the
variable rate and the remarketing agent shall attempt at least weekly to convert the Bonds
to a fixed interest rate sufficient to effect the remarketing at par of all Bonds then held
by the Provider.

B-3

 

EXHIBIT
4.27

	11.	 	Holding Periods: For amortization periods of less than 5 years, no amortization shall be
permitted prior to the first anniversary of the date the tendered Bonds are purchased by the
Provider. For amortization periods of 5 years or more, no amortization shall be permitted
prior to 6 months from the date the tendered Bonds are purchased by the Provider. Whether
during the term of the Facility or subsequent to the termination thereof, the Provider shall
not be permitted to tender unremarketed Bonds to the issuer and shall be required to hold such
Bonds for the periods and in accordance with the conditions set forth above (except that no
holding period is required in the event of a termination of the Facility pursuant to 4(a)
hereof). Financial Guaranty shall pay only principal and interest on the Bonds as scheduled,
in accordance with the terms of the Policy, unless Financial Guaranty has provided, at the
request of the Provider, an endorsement to its Policy to cover a special mandatory redemption
under the authorizing document.
	 
	12.	 	Maximum Rates: The maximum rate payable for any interest payment period on the Bonds,
whether or not held by or pledged to the Provider at such time, shall be the lesser of 10% per
annum and the maximum rate permitted by applicable law (the “Cap Rate”).

B-4exv4w28

 

EXHIBIT 4.28

      

BOND PURCHASE AGREEMENT

among

CONNECTICUT DEVELOPMENT AUTHORITY,

THE CRYSTAL WATER COMPANY OF DANIELSON,

CONNECTICUT WATER SERVICE, INC.

and

A.G. EDWARDS & SONS, INC.

Dated November 16, 2005

$5,000,000

Connecticut Development Authority

Water Facilities Revenue Bonds

(The Crystal Water Company of Danielson Project – 2005A Series)

      

 

 

EXHIBIT 4.28

BOND PURCHASE AGREEMENT

     AGREEMENT, dated November 16, 2005, among the Connecticut Development Authority (the
“Authority”), The Crystal Water Company of Danielson (the “Company”), Connecticut Water Service,
Inc. (the “Guarantor”) and A.G. Edwards & Sons, Inc. (the “Underwriter”), with respect to the sale
and purchase of the Authority’s $5,000,000 Water Facilities Revenue Bonds (The Crystal Water
Company of Danielson Project – 2005A Series) (the “Bonds”) on the terms and subject to the
conditions herein set forth:

     1. The Borrower has previously filed with the Authority its application for the issuance of
the Bonds by the Authority, and the Authority has authorized the Bonds by a resolution duly adopted
August 17, 2005 (the “Resolution”). The Bonds will be special obligations of the Authority payable
solely out of the revenues or other receipts, funds or moneys pledged therefore, and from any
amounts otherwise available to the Trustee for the payment thereof under the indenture referred to
below. The proceeds of the sale of the Bonds will be loaned to the Company for use in the
acquisition, construction and installation of certain additions to the water system of the Company
(the “Project”) located in certain municipalities within the State of Connecticut (the “State”).
All such projects are to be used for water facilities purposes, all as more particularly described
in the Loan Agreement (the “Agreement”), dated as of October 1, 2005 by and between the Authority
and the Company. Pursuant to the Agreement, the Company will execute and deliver to the Authority
the Company’s note (the “Note”) to evidence its indebtedness thereunder. Payments on the Note
shall be applied to the amounts due on the Bonds.

     The Bonds shall be in all respects as described in, and shall be issued under and pursuant to,
an Indenture of Trust (the “Indenture”), dated as of October 1, 2005, between the Authority and
U.S. Bank National Association, as trustee (the “Trustee”). In connection with the execution and
delivery of the Indenture, the Authority and the Trustee will execute and deliver a Letter of
Representation (the “Letter of Representation”) to The Depository Trust Company (“DTC”). In order
to assure the exclusion of interest on the Bonds from gross income for purposes of federal income
taxation, the Company, the Authority and the Trustee will enter into a Tax Regulatory Agreement
relating to the Bonds, dated as of the date of issuance of the Bonds (the “Tax Regulatory
Agreement”).

     The Bonds shall be additionally secured by a Guaranty, dated as of October 1, 2005, from the
Guarantor to the Trustee (the “Guaranty”).

     In this Bond Purchase Agreement, the term “Financing Documents” (1) when used with respect to
the Company, means the Agreement, the Note, the Tax Regulatory Agreement, the Insurance Agreement
to be dated as of the hereinafter-defined Closing Date among the Company, the Guarantor and
Financial Guaranty Insurance Company (the “Bond Insurer”), the Continuing Disclosure Agreement
dated as of October 1, 2005 between the Company and the Trustee, as dissemination agent (the
“Company Disclosure Agreement”), and the general certificate of the Company delivered in connection
with the issuance of the Bonds, (2) when used with respect to the Guarantor, means the Guaranty,
the Continuing Disclosure Agreement dated

1

 

Exhibit 4.28

as of October 1, 2005 between the Guarantor and the Trustee, as dissemination agent (the
“Guarantor Disclosure Agreement”), and the general certificate of the Guarantor delivered in
connection with the issuance of the Bonds and (3) when used with respect to the Authority, means
any of the foregoing documents and agreements referred to in (1) above to which the Authority is a
direct party. The Financing Documents when such term is used with respect to the Company or the
Guarantor, do not include any documents or agreements to which the Company or the Guarantor, as the
case may be, is not a direct party, including the Bonds, the Indenture or the Letter of
Representation.

     2. Subject to the terms and conditions and upon the basis of the representations hereinafter
set forth, the Authority hereby agrees to sell the Bonds to the Underwriter and the Underwriter
hereby agrees to purchase the Bonds from the Authority at the purchase price of $5,000,000.00. The
Bonds shall be dated their date of delivery, shall mature on October 1, 2040 and shall bear
interest at a rate of 5% per annum, payable on April 1 and October 1 in each year, commencing April
1, 2006. It will be a condition to the Authority’s obligation to sell the Bonds to the Underwriter
and the obligation of the Underwriter to purchase the Bonds that all Bonds be sold and delivered by
the Authority and paid for by the Underwriter on the Closing Date, as hereinafter defined.

     3. The date of delivery and payment for the Bonds (the “Closing Date”) will be November 30,
2005 unless not later than the fifth day preceding such date the Authority, the Company and the
Underwriter agree that the Closing Date will be a specified date not later than the thirtieth day
subsequent to such date, in which event the Closing Date will be the date so specified. The Bonds
shall be available for inspection and packaging at least twenty-four hours before the Closing Date.

     The Authority will authorize the Trustee to authenticate and deliver the Bonds to the
Underwriter through the facilities of DTC, 55 Water Street, New York, New York, utilizing the FAST
System pursuant to which the Trustee will take custody of the Bonds as agent for DTC, at
approximately 11:00 A.M., New York City time on the Closing Date, in typewritten form, bearing
CUSIP numbers, duly executed and authenticated, registered in the name of Cede & Co., as nominee
for DTC, against payment therefor by wire transfer or other manner payable in immediately available
funds to the Trustee for the account of the Authority. The payment for the Bonds to the Authority
and the delivery thereof to the Underwriter shall be made at the offices of Murtha Cullina LLP,
City Place I, 185 Asylum Street, Hartford, Connecticut. The Bonds will be delivered in the form
and denominations and shall be otherwise as described in the Indenture.

     4. The Authority represents and warrants that:

     (a) It is a body corporate and politic constituting a public instrumentality and political
subdivision of the State of Connecticut duly organized and existing under the laws of the State of
Connecticut, particularly the State Commerce Act, constituting Connecticut General Statutes,
Sections 32-la through 32-23zz, as amended (the “Act”). The Authority is authorized to issue the
Bonds in accordance with the Act and to lend the proceeds thereof to the Company to finance the
improvements described in the Indenture.

2

 

Exhibit 4.28

     (b) The Authority has complied with the provisions of the Act and has full power and authority
pursuant to the Act to consummate all transactions contemplated by this Bond Purchase Agreement,
the Bonds, the Resolution, the Indenture and the Financing Documents, and to issue, sell and
deliver the Bonds to the Underwriter as provided herein.

     (c) The Resolution has been duly adopted by the Authority and is still in full force and
effect. The Resolution has authorized the execution, delivery and due performance of this Bond
Purchase Agreement, the Bonds, the Indenture and the Financing Documents, and the taking of any and
all action as may be required on the part of the Authority to carry out, give effect to and
consummate the transactions contemplated by this Bond Purchase Agreement, and all approvals
necessary in connection with the foregoing have been received, except the State Treasurer’s
approval.

     (d) When delivered to and paid for by the Underwriter in accordance with the terms of this
Bond Purchase Agreement, the Bonds will have been duly authorized, executed, authenticated, issued
and delivered and will constitute valid and binding special obligations of the Authority payable
solely from revenues or other receipts, funds or moneys pledged therefor under the Indenture and
from any amounts otherwise available therefor under the Indenture, and will be entitled to the
benefit of the Indenture. Neither the State nor any municipality thereof will be obligated to pay
the Bonds or the interest thereon. Neither the faith and credit nor the taxing power of the State
nor any municipality thereof is pledged for the payment of the principal, and premium, if any, of
and interest on the Bonds.

     (e) The execution and delivery of this Bond Purchase Agreement, the Bonds, the Indenture and
the Financing Documents, and compliance with the provisions thereof, will not conflict with or
constitute on the part of the Authority a violation of, breach of or default under its by-laws or
any statute, indenture, mortgage, deed of trust, note agreement or other agreement or instrument to
which the Authority is a party or by which the Authority is bound, or, to the knowledge of the
Authority, any order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Authority or any of its activities or properties, and all consents,
approvals, authorizations and orders of governmental or regulatory authorities which are required
for the consummation by the Authority of the transactions contemplated thereby have been obtained,
except the State Treasurer’s approval.

     (f) Subject to the provisions of the Agreement and the Indenture, the Authority will apply the
proceeds from the sale of the Bonds to the purposes specified in the Indenture and the Financing
Documents.

     (g) To the best knowledge of the Authority, there is no action, suit, proceeding or
investigation at law or in equity before or by any court, public board or body pending or
threatened against or affecting the Authority, or to the best knowledge of the Authority, any basis
therefor, wherein an unfavorable decision, ruling or finding would adversely affect the
transactions contemplated hereby and by the Indenture, or which, in any way, would adversely affect
the validity of the Bonds, the Resolution, the Indenture, the Financing Documents, this Bond
Purchase Agreement, or any agreement or instrument to which the Authority is a party and

3

 

Exhibit 4.28

which is used or contemplated for use in consummation of the transactions contemplated hereby
and by the Indenture or the exemption from taxation as set forth therein.

     (h) The representations and warranties of the Authority contained in Section 2.1 of the Loan
Agreement are true and correct as of the date hereof.

     (i) Any certificate signed by any Authorized Representative of the Authority under the
Resolution or this Bond Purchase Agreement and delivered to the Underwriter or to the Trustee shall
be deemed a representation and warranty by the Authority to the Underwriter and the Company as to
the statements made therein.

     (j) The information with respect to the Authority in the Official Statement of the Authority,
dated the date hereof, is correct and complete, except that none of the representations and
warranties herein apply to statements in or omissions from the Official Statement made in reliance
on or in conformity with information furnished, to the Authority by the Company, or to information
under the headings “THE PROJECT”, “THE BONDS—Book-Entry Only System”, “BOND INSURANCE”, “TAX
MATTERS”, “LEGAL MATTERS” and “INDEPENDENT ACCOUNTANTS”, or to anything contained or incorporated
by reference in the appendices to the Official Statement or otherwise with respect to the Company.
The Authority has authorized the use of the Official Statement in both its preliminary and final
forms and delivered duly executed copies thereof in final form to the Underwriter.

     It is specifically understood and agreed that the Authority makes no representation as to the
financial position or business condition of the Company or any other person and does not, with
respect to the Official Statement or otherwise, except to the extent the Authority deems the
Preliminary Official Statement to be final as provided in Section 10 hereof, represent or warrant
as to any of the statements, materials (financial or otherwise), representations or certifications
furnished or to be made and furnished by the Company or any other person in connection with the
sale of the Bonds, or as to the correctness, completeness or accuracy of any of such statements,
materials, representations or certificates.

     5. The Company represents and warrants that:

     (a) The Company has been duly organized and validly exists as a corporation under the laws of
the State of Connecticut, having all requisite corporate power to carry on its business as now
constituted.

     (b) The execution and delivery by the Company of the Financing Documents and this Bond
Purchase Agreement, and all other agreements herein contemplated to be performed by the Company,
and the performance of the conditions herein contained and those in each of such instruments to be
performed are not in contravention of law and will not conflict with or result in any breach of any
of the terms, conditions or provisions of, or constitute a default under any indenture, mortgage
deed of trust or other agreement or instrument to which the Company is a party, or the Certificate
of Incorporation and any special acts incorporated by reference therein or Bylaws of the Company,
or any order, rule or regulation applicable to the Company of any court or of any federal or State
regulatory body or administrative agency or other governmental body

4

 

Exhibit 4.28

having jurisdiction over the Company or over any of its properties, or any statute, rule or
regulation of any jurisdiction applicable to the Company, or result in the creation or imposition
of any lien, charge or encumbrance upon any of the properties or assets of the Company pursuant to
the terms of any indenture, agreement or undertaking binding upon it; and, to the extent required
by law, the Connecticut Department of Public Utility Control (the “DPUC”) has approved or waived
approval of all matters relating to the Company’s participation in the transactions contemplated in
the Financing Documents which require such approval or waiver of approval; such approval or waiver
of approval remains in full force and effect in the form issued; and, assuming that the Bonds are
securities described in Section 3(a)(2) of the Securities Act of 1933, as amended (the “Securities
Act”) and Section 3(a)(12) and (29) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), no other consent, approval, authorization or other order of any regulatory body or
administrative agency or other governmental body is legally required for the Company’s
participation in connection therewith, except as have been obtained.

     (c) Except as disclosed or incorporated by reference in the Official Statement, there is no
action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court,
public board or body, pending, or to the knowledge of the Company threatened, wherein an
unfavorable decision, ruling or finding would (i) in the opinion of the Company, involve the
possibility of any judgment or liability to the extent not covered by insurance which would result
in any material adverse change in the business, properties or operations of the Company, (ii)
materially adversely affect the transactions contemplated by this Bond Purchase Agreement or (iii)
materially adversely affect the validity or enforceability of the Financing Documents or this Bond
Purchase Agreement.

     (d) The Company will not take or omit to take any action which action or omission will in any
way cause the proceeds from the sale of the Bonds to be applied in a manner contrary to that
provided in the Financing Documents.

     (e) Except as disclosed or incorporated by reference in the Official Statement, the Company is
not a party to or bound by any contract, agreement or other instrument, or subject to any judgment,
order, writ, injunction, decree, rule or regulation which, in the Company’s opinion, materially
adversely affects, or in the future may, so far as the Company can now reasonably foresee,
materially adversely affect the business, operations, properties, assets or condition, financial or
otherwise, of the Company.

     (f) Neither this Bond Purchase Agreement, other than Sections 4 or 6 hereof as to which no
representation is made, nor any other document, certificate or written statement furnished to the
Underwriter or the Authority by or on behalf of the Company, when read together with the
information disclosed or incorporated by reference in the Official Statement, contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained herein and therein, in light of the circumstances under which they were made,
not misleading or incomplete.

5

 

Exhibit 4.28

     (g) The Company has not taken and will not take any action and knows of no action that any
person, firm or corporation has taken or intends to take, which would cause interest on the Bonds
to be includable in the gross income of the recipients thereof for federal income tax purposes.

     (h) The Company will deliver or cause to be delivered all opinions, certificates, letters and
other instruments and documents required to be delivered by the Company pursuant to this Bond
Purchase Agreement.

     (i) The Financing Documents and this Bond Purchase Agreement, when executed and delivered,
will be legal, valid, binding and enforceable obligations of the Company, except to the extent that
such enforceability may be limited by bankruptcy or insolvency or other laws affecting creditors’
rights generally or by general principles of equity.

     (j) The Company has authorized and consents to the use of the Official Statement by the
Underwriter. The information with respect to the Company included or incorporated by reference in
Appendix A-1 to the Preliminary Official Statement and the descriptions contained therein of the
Indenture and the Financing Documents and the Company’s participation in the transactions
contemplated thereby, with such additions or amendments as heretofore have been agreed upon between
the Authority, the Company and the Underwriter and which are reflected in the Official Statement,
are correct and do not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein in light of
circumstances under which they were made not misleading except that the Company makes no
representation as to (A) the information contained in Appendices B (including the financial
statements incorporated therein by reference), D and F of each of the Preliminary Official
Statement and the Official Statement or the information contained in each of the Preliminary
Official Statement and the Official Statement under the captions “INTRODUCTION — The Authority”,
“THE AUTHORITY”, “THE BONDS — Book Entry Only System”, “TAX MATTERS”, “BOND INSURANCE” and
“UNDERWRITING” or (B) the information with respect to DTC and its book-entry system. The financial
statements summarized in Appendix A to each of the Preliminary Official Statement and the Official
Statement have been prepared in accordance with generally accepted accounting principles as applied
in the case of rate-regulated public utilities, comply with the Uniform System of Accounts and
ratemaking practices prescribed by the DPUC (except as otherwise disclosed in the notes to such
financial statements) and fairly present the combined financial position, results of operations,
retained earnings and statements of cash flows of the Company and of The Gallup Water Service, Inc.
(“Gallup Water”) at the respective dates and for the respective periods indicated.

     (k) There has been no material adverse change in the business, properties, operations or
financial condition of the Company, taking into account seasonal revenue fluctuations, from that
shown or incorporated by reference in the Official Statement.

     (l) The Company will use its best efforts to cause the delivery of the Policy (as hereinafter
defined).

6

 

Exhibit 4.28

     (m) The representations and warranties of the Company contained in Section 2.2 of the Loan
Agreement are true and correct as of the date hereof.

     (n) The Company has obtained all approvals required in connection with the execution and
delivery of, and performance by the Company of its obligations under, this Bond Purchase Agreement
and the Financing Documents.

     (o) Any certificate signed by an officer of the Company and delivered to the Underwriter at
the time of the purchase and sale of the Bonds shall be deemed a representation and warranty by the
Company to the Underwriter as to the statements made therein.

     (p) The Company deems the Preliminary Official Statement to be final as of its date for
purposes of Rule 15c2-12 of the SEC.

     (q) No material event of default or event which, with notice or lapse of time or both, would
constitute a material event of default or default under any material agreement or material
instrument to which the Company is a party or by which the Company is bound or to which any of the
property or assets of the Company is subject has occurred and is continuing.

     (r) The Company will undertake, pursuant to the Company Disclosure Agreement, to provide
certain annual financial information and notices of the occurrence of certain events, if material.
A description of this undertaking is set forth in the Preliminary Official Statement and will be
set forth in the Official Statement.

     6. The Guarantor represents and warrants that:

     (a) The Guarantor has been duly organized and validly exists as a corporation under the laws
of the State of Connecticut, having all requisite corporate power to carry on its business as now
constituted.

     (b) The execution and delivery by the Guarantor of the Financing Documents and this Bond
Purchase Agreement, and all other agreements herein contemplated to be performed by the Guarantor,
and the performance of the conditions herein contained and those in each of such instruments to be
performed are not in contravention of law and will not conflict with or result in any breach of any
of the terms, conditions or provisions of, or constitute a default under any indenture, mortgage
deed of trust or other agreement or instrument to which the Guarantor is a party, or the
Certificate of Incorporation or Bylaws of the Guarantor, or any order, rule or regulation
applicable to the Guarantor of any court or of any federal or State regulatory body or
administrative agency or other governmental body having jurisdiction over the Guarantor or over any
of its properties, or any statute, rule or regulation of any jurisdiction applicable to the
Guarantor, or result in the creation or imposition of any lien, charge or encumbrance upon any of
the properties or assets of the Guarantor pursuant to the terms of any indenture, agreement or
undertaking binding upon it; and, assuming that the Bonds are securities described in Section
3(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Section 3(a)(12) and
(29) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), no other

7

 

Exhibit 4.28

consent, approval, authorization or other order of any regulatory body or administrative
agency or other governmental body is legally required for the Guarantor’s participation in
connection therewith, except as have been obtained.

     (c) Except as disclosed or incorporated by reference in the Official Statement, there is no
action, suit, proceeding, inquiry or investigation, at law or in equity, or before or by any court,
public board or body, pending, or to the knowledge of the Guarantor threatened, wherein an
unfavorable decision, ruling or finding would (i) in the opinion of the Guarantor, involve the
possibility of any judgment or liability to the extent not covered by insurance which would result
in any material adverse change in the business, properties or operations of the Guarantor, (ii)
materially adversely affect the transactions contemplated by this Bond Purchase Agreement or (iii)
materially adversely affect the validity or enforceability of the Financing Documents or this Bond
Purchase Agreement.

     (d) Except as disclosed or incorporated by reference in the Official Statement, the Guarantor
is not a party to or bound by any contract, agreement or other instrument, or subject to any
judgment, order, writ, injunction, decree, rule or regulation which, in the Guarantor’s opinion,
materially adversely affects, or in the future may, so far as the Guarantor can now reasonably
foresee, materially adversely affect the business, operations, properties, assets or condition,
financial or otherwise, of the Guarantor.

     (e) Neither this Bond Purchase Agreement, other than Sections 4 or 5 hereof as to which no
representation is made, nor any other document, certificate or written statement furnished to the
Underwriter or the Authority by or on behalf of the Guarantor, when read together with the
information disclosed or incorporated by reference in the Official Statement, contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained herein and therein, in light of the circumstances under which they were made,
not misleading or incomplete.

     (f) The Guarantor will deliver or cause to be delivered all opinions, certificates, letters
and other instruments and documents required to be delivered by the Guarantor pursuant to this Bond
Purchase Agreement.

     (g) The Financing Documents and this Bond Purchase Agreement, when executed and delivered,
will be legal, valid, binding and enforceable obligations of the Guarantor, except to the extent
that such enforceability may be limited by bankruptcy or insolvency or other laws affecting
creditors’ rights generally or by general principles of equity.

     (h) The Guarantor has authorized and consents to the use of the Official Statement by the
Underwriter. The information with respect to the Guarantor included or incorporated by reference
in Appendix B to the Preliminary Official Statement and the descriptions contained therein of the
Indenture and the Financing Documents and the Guarantor’s participation in the transactions
contemplated thereby, with such additions or amendments as heretofore have been agreed upon between
the Authority, the Guarantor and the Underwriter and which are reflected in the Official Statement,
are correct and do not contain any untrue statement of a material fact or

8

 

Exhibit 4.28

omit to state a material fact required to be stated therein or necessary to make the
statements therein in light of circumstances under which they were made not misleading except that
the Guarantor makes no representation as to (A) the information contained in Appendices D and F of
each of the Preliminary Official Statement and the Official Statement or the information contained
in each of the Preliminary Official Statement and the Official Statement under the captions
“INTRODUCTION — The Authority”, “THE AUTHORITY”, “THE BONDS — Book Entry Only System”, “TAX
MATTERS”, “BOND INSURANCE” and “UNDERWRITING” or (B) the information with respect to DTC and its
book-entry system. The financial statements incorporated by reference in Appendix B to each of the
Preliminary Official Statement and the Official Statement have been prepared in accordance with
generally accepted accounting principles and fairly present the financial position, results of
operations, retained earnings and statements of cash flows of the Guarantor at the respective dates
and for the respective periods indicated.

     (i) There has been no material adverse change in the business, properties, operations or
financial condition of the Guarantor, taking into account seasonal revenue fluctuations, from that
shown or incorporated by reference in the Official Statement.

     (j) The representations and warranties of the Guarantor contained in Section 1.1 of the
Guaranty are true and correct as of the date hereof.

     (k) The Guarantor has obtained all approvals required in connection with the execution and
delivery of, and performance by the Guarantor of its obligations under, this Bond Purchase
Agreement and the Financing Documents.

     (l) Any certificate signed by an officer of the Guarantor and delivered to the Underwriter at
the time of the purchase and sale of the Bonds shall be deemed a representation and warranty by the
Guarantor to the Underwriter as to the statements made therein.

     (m) The Guarantor deems the Preliminary Official Statement to be final as of its date for
purposes of Rule 15c2-12 of the SEC.

     (n) No material event of default or event which, with notice or lapse of time or both, would
constitute a material event of default or default under any material agreement or material
instrument to which the Guarantor is a party or by which the Guarantor is bound or to which any of
the property or assets of the Guarantor is subject has occurred and is continuing.

     (o) The Guarantor will undertake, pursuant to the Guarantor Disclosure Agreement, to provide
certain annual financial information and notices of the occurrence of certain events, if material.
A description of this undertaking is set forth in the Preliminary Official Statement and will be
set forth in the Official Statement.

     7. The Company and the Guarantor agree, jointly and severally, to indemnify and hold harmless
the Authority, the Underwriter, any member, officer, official, employee or agent of the Authority
or the State or the Underwriter, and each person, if any, who controls the Underwriter within the
meaning of Section 15 of the Securities Act, as amended (for purposes of

9

 

Exhibit 4.28

this paragraph, collectively the “Indemnified Parties”), to the extent permitted under the
applicable law, against any and all losses, claims, damages, liabilities or expenses whatsoever,
joint or several, caused by (1) any breach of any representation or warranty made by the Company or
the Guarantor in this Bond Purchase Agreement or the Financing Documents or (2) any untrue
statement or misleading statement or allegedly misleading statement of a material fact contained in
the Official Statement or caused by any omission or alleged omission from the Official Statement of
any material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading, except insofar as such losses, claims,
damages, liabilities or expenses are caused by any such untrue or misleading statement or omission
or allegedly untrue or misleading statement or omission in the information contained under the
captions “INTRODUCTION — The Authority”, “THE AUTHORITY”, “THE BONDS — Book Entry Only System”,
“TAX MATTERS”, “BOND INSURANCE” and “UNDERWRITING” or in Appendices D and F thereto (except to the
extent that the information set forth in such section is premised on facts and representations made
in writing by the Company or the Guarantor); provided, however, that in the case of clause (2)
above such indemnity shall not inure to the benefit of the Underwriter (or any person controlling
the Underwriter or any officer or employee of the Underwriter) if (i) the Company has caused to be
delivered to the Underwriter on a timely basis sufficient quantities of the Official Statement, as
amended or supplemented, and (ii) a copy of the Official Statement, as then so amended or
supplemented, was not sent or given by or on behalf of the Underwriter to the person asserting such
loss, claim, damage, liability or expense prior to or with written confirmation of the sale of such
Bonds to such person by the Underwriter, and (iii) the receipt of the Official Statement, as then
so supplemented or amended, would have been a valid defense to the loss, claim, damage, liability
or expense asserted. This indemnity agreement shall not be construed as a limitation on any other
liability which the Company or the Guarantor may otherwise have to any Indemnified Party.

     The Underwriter agrees to indemnify and hold harmless the Authority, the Company and the
Guarantor, and each director, officer or employee of the Authority, the Company and the Guarantor,
and each person who controls either of them within the meaning of Section 15 of the Securities Act
(for purposes of this paragraph, an “Indemnified Party”) to the same extent as the foregoing
indemnity from the Company and the Guarantor to the Underwriter, but only with reference to written
information furnished to the Authority, the Company or the Guarantor by or on behalf of the
Underwriter specifically for inclusion in the Official Statement under the caption “UNDERWRITING”.
This indemnity agreement shall not be construed as a limitation on any other liability which the
Underwriter may otherwise have to any Indemnified Party.

     An Indemnified Party will, promptly after receiving notice of the commencement of any action
against such Indemnified Party in respect of which indemnification may be sought against the
Company, the Guarantor or the Underwriter, as the case may be (in any case the “Indemnifying
Party”), notify the Indemnifying Party in writing of the commencement of the action, enclosing a
copy of all papers served, but the omission so to notify the Indemnifying Party of any such action
shall not relieve the Indemnifying Party of any liability which it may have to any Indemnified
Party otherwise than under this Section. If such action is brought against an Indemnified Party
and such Indemnified Party notices the Indemnifying Party of its

10

 

Exhibit 4.28

commencement, the Indemnifying Party may, or if so requested by the Indemnified Party shall,
participate in it or assume its defense, with counsel reasonably satisfactory to the Indemnified
Party, and after notice from the Indemnifying Party to the Indemnified Party of an election to
assume the defense, the Indemnifying Party will not be liable to the Indemnified Party under this
Section for any legal or other expenses subsequently incurred by such Indemnified Party in
connection with the defense other than reasonable costs of investigation subsequently incurred by
the Indemnified Party in connection with the defense thereof. Until the Indemnifying Party assumes
the defense of any such action at the request of the Indemnified Party, the Indemnifying Party may
participate at its own expense in the defense of the action. If the Indemnifying Party does not
employ counsel to have charge of the defense or if any Indemnified Party reasonably concludes that
there may be defenses available to it or them which are different from or in addition to those
available to the Indemnifying Party or the Indemnified Party and the Indemnifying Parties may have
conflicting interests which would make it inappropriate for the same counsel to represent both of
them, reasonable legal and other expenses incurred by such Indemnified Party will be paid by the
Indemnifying Party and the Indemnifying Party shall not have the right to direct the defense of
such action on behalf of such Indemnified Party (it being understood, however, that the
Indemnifying Party shall not be liable for the expenses of more than one separate counsel (in
addition to local counsel) approved by the Underwriter in the case of paragraph (a) representing
all Indemnified Parties who are parties to such action). Any obligation under this Section 7 of an
Indemnifying Party to reimburse an Indemnified Party for expenses includes the obligation to
reimburse the Indemnified Party to cover such expenses in reasonable amounts and at reasonable
periodic intervals upon receipt by the Indemnifying Party of an invoice for such expenses not more
often than monthly as requested by the Indemnifying Party. Notwithstanding the foregoing, the
Indemnifying Party shall not be liable for any settlement of any action or claim effected without
its consent, which consent shall not be unreasonably withheld.

     In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for above is due in accordance with its terms but is for any reason held
by a court to be unavailable from the Company, the Guarantor or Underwriter on grounds of policy or
otherwise, the Company and the Guarantor (on one hand) and the Underwriter shall contribute to the
total losses, claims, damages and liabilities (including reasonable legal or other expenses of
investigation or defense) to which they may be subject (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company and the Guarantor (on one hand) and the
Underwriter from the offering of the Bonds or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the Company and
the Guarantor (on one hand) and the Underwriter in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations. The respective relative benefits received by the Company and the
Guarantor (on one hand) and the Underwriter shall be deemed to be in the same proportion as the
proceeds from the sale (i.e., the principal amount of the Bonds) bears to the discount or fee in
connection with such sale received by the Underwriter as an underwriting fee, as set forth in
Section 13 hereof. The relative fault of the Company and the Guarantor (on one hand) and the
Underwriter shall be determined by reference to, among other things, whether

11

 

Exhibit 4.28

the untrue or alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company and the Guarantor (on one
hand) or by the Underwriter and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. However, no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section, each person who controls the Underwriter within the meaning of
Section 15 of the Securities Act will have the same rights to contribution as the Underwriter, and
each person who controls the Company or the Guarantor within the meaning of Section 15 of the
Securities Act and each officer and each director of the Company or the Guarantor will have the
same rights to contribution as the Company or the Guarantor, subject to the foregoing sentence.
Any party entitled to contribution will, promptly after receiving notice of commencement of any
action, suit or proceeding against such party in respect of which a claim for contribution may be
made under this paragraph, notify each party from whom contribution may be sought, but the omission
to notify such party shall not relieve any party from whom contribution may be sought from any
other obligation it may have otherwise than pursuant to this paragraph.

     8. (a) The Company’s obligations hereunder, except those contained in Sections 7 and 13, will
be conditioned upon the approval by the DPUC of the issuance of the Note, the loan under the
Agreement and the transactions of the Company contemplated by the Financing Documents; the purchase
of and payment for the Bonds in accordance herewith on the Closing Date; the performance of the
obligations of the Authority and the Underwriter not dependant on the performance of the Company;
and the delivery to the Authority of the approving opinion of Winston & Strawn LLP, Bond Counsel,
in form and substance substantially in the form set forth as Appendix D to the Official Statement.

          (b) The Guarantor’s obligations hereunder, except those contained in Section 7, will be
conditioned upon the approval by the DPUC of the issuance of the Note, the loan under the Agreement
and the transactions of the Guarantor contemplated by the Financing Documents; the purchase of and
payment for the Bonds in accordance herewith on the Closing Date; the performance of the
obligations of the Authority and the Underwriter not dependant on the performance of the Guarantor;
and the delivery to the Authority of the approving opinion of Winston & Strawn LLP, Bond Counsel,
in form and substance substantially in the form set forth as Appendix D to the Official Statement.

     9. The Authority’s obligation to deliver the Bonds and to accept payment therefor are subject
to the performance of the obligations of the Company, the Guarantor and the Underwriter not
dependent on the performance of the Authority, and will be conditioned upon the approval by the
DPUC of the issuance of the Note, the loan under the Agreement and the transactions of the Company
contemplated by the Financing Documents; the purchase of and payment for the Bonds in accordance
herewith on the Closing Date; the delivery by the Underwriter to the Authority of a certificate
substantially in the form of Schedule I to the Tax Regulatory Agreement; and the delivery to the
Authority of the approving opinion of Winston & Strawn LLP, Bond Counsel, in form and substance
substantially in the form set forth as Appendix D to the Official Statement, and will be subject to
the further condition that all

12

 

Exhibit 4.28

documents, certificates, opinions and other items to be delivered at the closing pursuant
hereto and as otherwise may reasonably be requested by Bond Counsel not be unsatisfactory in form
and substance to Bond Counsel.

     10. The Underwriter’s obligations hereunder to purchase and pay for the Bonds will be subject
to (i) the approval by the DPUC of the issuance of the Note, the loan under the Agreement and the
transactions of the Company contemplated by the Financing Documents, (ii) the performance by the
Authority of its obligations to be performed hereunder at or prior to the Closing Date, (iii) the
performance by the Company and the Guarantor of their obligations to be performed hereunder at or
prior to the Closing Date, (iv) the continued accuracy in all material respects of the
representations and warranties of the Authority, the Company and the Guarantor contained herein and
in the Agreement as of the date hereof and as of the Closing Date, and (v) in the reasonable
judgment of the Underwriter, the following conditions:

     (a) After the date hereof, no litigation may be threatened or pending in any court (i) seeking
to restrain or enjoin the issuance or delivery of the Bonds or the payment, collection or
application of the proceeds thereof or moneys and securities pledged or to be pledged under the
Indenture, or (ii) in any way questioning or affecting the validity of the Bonds or any provisions
of the Indenture, the Financing Documents or this Bond Purchase Agreement or any proceedings taken
by the Authority with respect to the foregoing, or (iii) questioning the Authority’s creation,
organization or existence or the titles to office of any of its officers authorized under the
Resolution, or its power to lend or provide money in connection with the Project as referred to in
the Indenture and the Agreement, or (iv) questioning the Company’s or the Guarantor’s power to
enter into and perform the Financing Documents or this Bond Purchase Agreement;

     (b) The market value of the Bonds has not been adversely affected by reason of the fact that
between the date hereof and the Closing Date:

     (1) legislation has been enacted by the Congress or recommended to the Congress for
passage by the President of the United States, or favorably reported for passage to either
House of the Congress by any Committee of such House to which such legislation has been
referred for consideration, or

     (2) a decision has been rendered by a Court of the United States, or the United States
Tax Court, or

     (3) an order, ruling, regulation or official statement has been made by the Treasury
Department of the United States or the Internal Revenue Service,

with the purpose or effect, directly or indirectly, of imposing federal income taxation upon such
revenues or other income as would be derived by the Authority under the Agreement or such interest
on the Bonds as would be received by the true owners and holders thereof, other than a person who,
within the meaning of Section 147(a) of the Internal Revenue Code of 1986, as amended (the “Code”),
is a “substantial user” or “related person”;

13

 

Exhibit 4.28

     (c) The market value of the Bonds has not in the opinion of the Underwriter been materially
adversely affected by reason of the fact that between the date hereof and the Closing Date any
legislation, ordinance, rule or regulation has been introduced in or enacted by any governmental
body, department or agency in the State, or a decision has been rendered by any court of competent
jurisdiction within the State with the purpose or effect, directly or indirectly, of imposing state
income taxation upon such revenues or other income as would be derived by the Authority under the
Agreement or such interest on the Bonds as would be received by the true owners and holders
thereof;

     (d) No stop order, ruling, regulation or official statement by, or on behalf of, the
Securities and Exchange Commission may have been issued or made after the date hereof to the effect
that the issuance, offering or sale of obligations of the general character of the Bonds, or the
Bonds, as contemplated hereby or by the Official Statement, is in violation or would be in
violation unless registered or otherwise qualified under any provisions of the Securities Act of
1933, as amended and as then in effect, or the Trust Indenture Act of 1939, as amended and as then
in effect;

     (e) After the date hereof, no legislation may have been introduced in or enacted by the House
of Representatives or the Senate or the Congress of the United States of America, nor shall a
decision by a court of the United States of America have been rendered, or a ruling, regulation or
official statement by or on behalf of the Securities and Exchange Commission or other governmental
agency having jurisdiction of the subject matter have been made or proposed to the effect that
obligations of the general character of the Bonds, or the Bonds, are not exempt from registration,
qualification or other requirements of the Securities Act of 1933, as amended and as then in
effect, or of the Securities Act of 1934, as amended and then in effect, or of the Trust Indenture
Act of 1939, as amended and as then in effect;

     (f) (i) No event shall have occurred after the date hereof, which, in the opinion of the
Underwriter, makes untrue, incorrect or inaccurate, in any material respect, any statement or
information contained or incorporated by reference in the Official Statement (including the
Appendices thereto), or which is not reflected in the Official Statement but should be reflected
therein for the purpose for which the Official Statement is to be used in order to make the
statements and information contained therein in light of the circumstances under which they were
made not misleading in any material respect, and (ii) there shall be no material adverse change
(not in the ordinary course of business) in the condition of either the Company or the Guarantor
from that set forth in or incorporated by reference in the Official Statement and Appendices A or B
respectively, thereto;

     (g) In the judgment of the Underwriter, the market price of the Bonds, or the market price
generally of obligations of the general character of the Bonds, shall not have been adversely
affected because: (a) additional material restrictions not in force as of the date hereof shall
have been imposed upon trading in securities generally by any governmental authority or by any
national securities exchange; (b) the New York Stock Exchange, Inc. or other national securities
exchange, or any governmental authority, shall impose, as to the Bonds or similar obligations, any
material restrictions not now in force, or increase materially those now in force,

14

 

Exhibit 4.28

with respect to the extension of credit by, or the charge to the net capital requirements of,
underwriters; (c) a general banking moratorium shall have been established by federal, New York or
Connecticut authorities; or (d) a war involving the United States of America shall have been
declared, or any other national calamity shall have occurred, or any conflict involving the armed
forces of the United States of America has escalated to such a magnitude as to materially adversely
affect the Underwriter’s ability to market the Bonds;

     (h) All matters relating to this Bond Purchase Agreement, the Bonds and the sale thereof, the
Indenture, the Financing Documents and the consummation of the transactions contemplated by this
Bond Purchase Agreement must be approved by the Underwriter but such approval may not be
unreasonably withheld; and

     (i) At or prior to the Closing Date the Underwriter must have received the following
documents:

     (1) Certified copies of the executed Financing Documents and the Indenture.

     (2) The legal opinions of the following, dated the Closing Date, in the form and
substance satisfactory to Bond Counsel and the Underwriter:

     (A) Murtha Cullina LLP, counsel to the Company and the Guarantor.

     (B) Day Berry & Howard LLP, counsel to the Trustee.

     (C) Winston & Strawn LLP, Bond Counsel, substantially in the form set forth as
Appendix D to the Official Statement.

     (D) Winston & Strawn LLP, Bond Counsel, concerning supplementary matters.

     (F) Counsel to the Bond Insurer, as described herein
below.

The respective forms of such opinions above are subject, in each case, only to such changes
therein as counsel to the Underwriter approve;

     (3) The legal opinion of GluckWalrath LLP, counsel to the Underwriter, addressed to the
Underwriter in the form and substance satisfactory to the Underwriter;

     (4) A certificate of an Authorized Representative of the Authority, dated the Closing
Date, to the effect that (i) on and as of the Closing Date, each of the representations and
warranties of the Authority set forth in Section 4 hereof is true, accurate and complete and
all agreements of the Authority herein provided and contemplated to be performed on or prior
to the Closing Date have been so performed; (ii) the executed copies of the Financing
Documents and the certified copies of the Resolution authorizing the Bonds are true, correct
and complete copies of such

15

 

Exhibit 4.28

documents and have not been modified, amended, superseded or rescinded but remain in
full force and effect as of the Closing Date; (iii) the Bonds have been duly authorized,
executed and delivered by the Authority; (iv) this Bond Purchase Agreement, the Indenture
and the Financing Documents and any and all other agreements and documents required to be
executed and delivered by the Authority in order to carry out, give effect to and consummate
the transactions contemplated hereby and by the Indenture have each been duly authorized,
executed and delivered by the Authority, and as of the Closing Date each is in full force
and effect and substantially all right, title and interest inuring to the Authority under
the Agreement has been duly pledged, and the loan payments thereunder assigned, to the
Trustee under the Indenture for the benefit of the holders of the Bonds; (v) no litigation
is pending or threatened to restrain or enjoin the issuance or sale of the Bonds or in any
way contesting the validity or affecting the authority for the issuance of the Bonds, the
authorization, execution or performance of the Indenture and the Financing Documents, or the
existence or powers of the Authority or the right of the Authority to finance the Project;
and (vi) the Treasurer of the State has approved all matters and resolutions of the
Authority required by the Act to be approved by the Treasurer with respect to the issuance,
sale and delivery of the Bonds;

     (5) A certificate of the Chairman, President and Chief Executive Officer, Vice
President-Chief Financial Officer, Treasurer, any Vice President, Assistant Treasurer or
Secretary of the Company, dated the Closing Date, as to the due incorporation, valid
existence of the Company under the laws of the State, and the due authorization, execution
and delivery by the Company of this Bond Purchase Agreement and the Financing Documents and
annexing resolutions of the Board of Directors or Executive Committee or both with respect
to such authorizations;

     (6) A certificate of the Chairman, President and Chief Executive Officer, Vice
President-Chief Financial Officer, Treasurer, any Vice President, Assistant Treasurer or
Secretary of the Company, dated the Closing Date, certifying severally that (i) the Company
does not have any material contingent obligations or any material contractual agreements
which are not disclosed or incorporated by reference in the Official Statement, (ii) so far
as is known to the Company, there are no material pending or threatened legal proceedings to
which the Company is or may be made a party or to which any of its property is or may become
subjugated, which has not been fully disclosed or incorporated by reference in the Official
Statement, (iii) there is no action or proceeding pending, or to its best knowledge
threatened, looking toward the dissolution or liquidation of the Company and there is no
action or proceeding pending, or to its best knowledge threatened, by or against the Company
affecting the validity and enforceability of the terms of the Financing Documents or this
Bond Purchase Agreement, (iv) since December 31, 2004 there has been no material adverse
change in the financial condition of the Company, taking into account seasonal revenue
fluctuations, not disclosed or incorporated by reference in the Official Statement, and (v)
the representations and warranties of the Company contained herein are true, complete and
correct as of the Closing Date, with the same effect as if those representations and
warranties had been made on and as of such date;

16

 

Exhibit 4.28

     (7) A certificate of the Chairman, President and Chief Executive Officer, Vice
President-Chief Financial Officer, Treasurer, any Vice President, Assistant Treasurer or
Secretary of the Guarantor, dated the Closing Date, as to the due incorporation, valid
existence of the Guarantor under the laws of the State, and the due authorization, execution
and delivery by the Guarantor of this Bond Purchase Agreement and the Financing Documents
and annexing resolutions of the Board of Directors or Executive Committee or both with
respect to such authorizations;

     (8) A certificate of the Chairman, President and Chief Executive Officer, Vice
President-Chief Financial Officer, Treasurer, any Vice President, Assistant Treasurer or
Secretary of the Guarantor, dated the Closing Date, certifying severally that (i) the
Guarantor does not have any material contingent obligations or any material contractual
agreements which are not disclosed or incorporated by reference in the Official Statement,
(ii) so far as is known to the Guarantor, there are no material pending or threatened legal
proceedings to which the Guarantor is or may be made a party or to which any of its property
is or may become subjugated, which has not been fully disclosed or incorporated by reference
in the Official Statement, (iii) there is no action or proceeding pending, or to its best
knowledge threatened, looking toward the dissolution or liquidation of the Guarantor and
there is no action or proceeding pending, or to its best knowledge threatened, by or against
the Guarantor affecting the validity and enforceability of the terms of the Financing
Documents or this Bond Purchase Agreement, (iv) since June 30, 2005 there has been no
material adverse change in the financial condition of the Guarantor, taking into account
seasonal revenue fluctuations, not disclosed or incorporated by reference in the Official
Statement, and (v) the representations and warranties of the Guarantor contained herein are
true, complete and correct as of the Closing Date, with the same effect as if those
representations and warranties had been made on and as of such date;

     (9) A certificate, satisfactory in form and substance to the Underwriter, of one or
more duly authorized officers of the Trustee, dated the Closing Date, as to the due
execution and delivery of the Indenture, the Company Disclosure Agreement and the Guarantor
Disclosure Agreement by the Trustee and the due authentication and delivery of the Bonds by
the Trustee thereunder;

     (10) Letters from Standard & Poor’s Ratings Service, the rating agency, indicating that
the rating for the Bonds is no less than “AAA”;

     (11) Evidence, in form and substance satisfactory to the Authority and the Underwriter,
that the Bond Insurer has delivered an insurance policy and any appropriate endorsements
thereupon guaranteeing the timely payment of principal of an interest on the Bonds (such
policy and any appropriate endorsements are herein called the “Policy”);

     (12) A certificate of the Bond Insurer stating that the information concerning the Bond
Insurer as set forth in the Official Statement under the heading “BOND INSURANCE” and in
“Appendix F” thereto is accurate;

17

 

Exhibit 4.28

     (13) An opinion of counsel to the Bond Insurer, dated the date of the Closing and
addressed to the Authority, the Company and the Underwriter, to the effect that: (i) the
Bond Insurer is a stock insurance corporation duly incorporated and validly existing under
the laws of the State of New York and is licensed and authorized under the laws of the State
of Connecticut to issue the Policy under the laws of the State of Connecticut; and (ii) the
Policy has been duly executed and is a valid and binding obligation of the Bond Insurer,
enforceable in accordance with its terms, except that the enforcement thereof may be limited
by laws relating to bankruptcy, insolvency, reorganization, moratorium, receivership and
other similar laws affecting creditors’ rights generally and general principles of equity;

     (14) A letter from PricewaterhouseCoopers LLP, independent auditors for the Guarantor,
dated the Closing Date and addressed to the Guarantor;

     (15) A copy of the order of the DPUC approving the issuance of the Bonds and the
transactions of the Company contemplated by the Financing Documents;

     (16) Certificates evidencing that the insurance required to be obtained pursuant to the
Agreement is in place;

     (17) A letter or other written evidence satisfactory to Bond Counsel that the State
Treasurer has approved the issuance of the Bonds in accordance with the Act;

     (18) A letter or other written evidence satisfactory to Bond Counsel that an elected
official has approved the issuance of the Bonds in accordance with the applicable provisions
of the Code; and

     (19) Such additional certificates, instruments or other documents as the Underwriter
may reasonably require to evidence the accuracy, as of the Closing Date, of the
representations and warranties herein contained, and the due performance and satisfaction by
the Company and the Guarantor at or prior to such time of all agreements then to be
performed and all conditions then to be satisfied by any one or all of them in connection
with this Bond Purchase Agreement, the Financing Documents or the Indenture.

     In addition:

     The Authority hereby represents that the Preliminary Official Statement, with such additions
and amendments as have been heretofore agreed upon between the Authority and the Underwriter, is
deemed final as of the date thereof, except for the omission of offering prices, interest rates,
selling compensation, aggregate principal amount, principal amount per maturity, delivery dates,
ratings and other terms of the Bonds depending on such matters. Such representation is made in
reliance upon the Company’s and the Guarantor’s representation herein that material relating to the
Company and the Guarantor included in the Preliminary Official Statement is true and correct. The
Company has contracted with a printer acceptable to the Underwriter for the delivery to the
Underwriter at Company’s expense of the number of copies

18

 

Exhibit 4.28

requested by the Underwriter of the Official Statement and will cooperate with the Underwriter
to secure the delivery thereof with reasonable promptness and within seven business days. The
Underwriter agrees to file a copy of such Official Statement with a nationally recognized municipal
securities information repository within five (5) days after such final Official Statements are
made available to the Underwriter and to advise the Authority as to the location and time of such
filing. Should the Underwriter require additional copies of the Official Statement, the Authority
agrees to cooperate with the Underwriter in obtaining such copies at Company’s expense if such
request is made within 90 days from the date hereof and at the Underwriter’s expense if such
request is made thereafter. The Underwriter has taken and will continue to take action to comply
with the Securities Exchange Commission Municipal Securities Disclosure Rule, 17 C.F.R.
§240.15c2-12 and the provisions of this paragraph shall survive the expiration hereof to the extent
necessary for such purpose.

     Except as provided in Sections 7 and 13 hereof, if the Authority, the Company or the Guarantor
shall fail or be unable to satisfy the conditions of their obligations contained in this Bond
Purchase Agreement, or if the Underwriter’s obligations hereunder shall be terminated for any
reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and
neither the Authority nor the Underwriter nor the Company shall be under any further obligation
hereunder.

     SIMULTANEOUSLY WITH OR BEFORE DELIVERY OF THE BONDS, THE UNDERWRITER SHALL FURNISH TO THE
AUTHORITY A CERTIFICATE SUBSTANTIALLY IN FORM ATTACHED TO THE TAX REGULATORY AGREEMENT ACCEPTABLE
TO BOND COUNSEL TO THE EFFECT THAT (I) THE UNDERWRITER HAS MADE A BONA FIDE PUBLIC
OFFERING OF THE BONDS TO THE PUBLIC AT INITIAL OFFERING PRICES NOT GREATER THAN THE RESPECTIVE
PRICES SHOWN ON THE COVER OF THE OFFICIAL STATEMENT, OR IN THE CASE OF DISCOUNT OBLIGATIONS SOLD ON
A YIELD BASIS, AT YIELDS NO LOWER THAN THOSE SHOWN ON THE COVER, INCLUDING INTEREST ACCRUED ON THE
BONDS FROM THE DATE THEREOF, AND (II) A SUBSTANTIAL AMOUNT OF THE FINAL AMOUNT OF EACH MATURITY OF
THE BONDS WAS SOLD TO THE FINAL PURCHASER THEREOF (NOT INCLUDING BOND HOUSES AND BROKERS OR SIMILAR
PERSONS OR ORGANIZATIONS ACTING IN THE CAPACITY OF UNDERWRITER OR WHOLESALERS) AT PRICES NOT
GREATER THAN SUCH OFFERING PRICES OR YIELDS. Bond Counsel advises that (i) such certificate must
be made on the best knowledge, information and belief of the Underwriter, (ii) the sale to the
public of 10% or more of each maturity of the Bonds at prices or yields not greater than the
Initial Offering Prices or Yields would be sufficient for the purpose of certifying as to the sale
of a substantial amount of the Bonds, and (iii) reliance on other facts as a basis for such
certification would require evaluation by Bond Counsel to assure compliance with the statutory
requirement.

     11. The Authority, the Company and the Guarantor agree that all representations, warranties
and covenants made by them herein, and in certificates or other instruments delivered pursuant
hereto or in connection herewith, shall be deemed to have been relied upon by the Underwriter
notwithstanding any investigation heretofore or hereafter made by the Underwriter on its behalf,
and that all representations, warranties and covenants made by the Authority, the

19

 

Exhibit 4.28

Company and the Guarantor herein and therein and all of the Underwriter’s rights hereunder and
thereunder shall survive the delivery of the Bonds.

     12. The Underwriter has received reasonable assurances that the Company and the Guarantor will
comply with its written undertaking, set forth in Section 6.13 of the Agreement and in the Company
Disclosure Agreement and the Guarantor Disclosure Agreement, to provide certain required disclosure
information to the Trustee, as dissemination agent, for the benefit of the bondholders and that
procedures are, or will be, in place such that the Trustee, as dissemination agent, will receive
prompt notice of any material event or Company’s failure, in any material respect, to comply with
its undertaking.

     13. The Authority shall pay, but only from proceeds of the Bonds or moneys to be provided by
the Company, any expenses incident to the performance of its obligations hereunder including but
not limited to (a) the cost of the preparation and printing (for distribution on or prior to the
date hereof) of the Financing Documents, the Indenture, the Preliminary Official Statement and the
final Official Statement (in such numbers as the Authority, the Company and the Underwriter shall
mutually agree upon), and this Bond Purchase Agreement; (b) the cost of the preparation and
printing of the Bonds; (c) the fees and disbursements of Winston & Strawn LLP, Bond Counsel; (d)
the fees of any other attorneys, experts or consultants retained by the Authority; and (e) any fee
to the rating agencies.

     The Underwriter shall pay (a) the cost of the preparation and printing of the Blue Sky Survey,
if any; (b) all advertising expenses in connection with the public offering of the Bonds; (c) the
fees and disbursements of GluckWalrath LLP, counsel to the Underwriter; and (d) all other expenses
incurred by the Underwriter in connection with their public offering and distribution of the Bonds,
including the fees and disbursements of all attorneys, experts and consultants retained by them.

     On or prior to the Closing Date, the Company shall pay the fees and disbursements of the
Underwriter in the aggregate amount of $147,500.

     14. All communications hereunder shall be in writing and, unless otherwise directed in
writing, shall be addressed as follows: if to the Authority at 999 West Street, Rocky Hill,
Connecticut 06067, Attention: Executive Director; if to the Company or the Guarantor at 93 West
Main Street, Clinton, Connecticut 06413, Attention: Vice President—Chief Financial Officer and
Treasurer; if to the Underwriter at One Gateway Center, Suite 1002, Newark, New Jersey 07102,
Attention: Craig A. Hrinkevich, Vice President and Managing Director.

     15. This Bond Purchase Agreement shall be construed and enforceable in accordance with the
laws of the State of Connecticut.

     16. All terms used but not defined herein shall have the meanings set forth in the Official
Statement.

20

 

Exhibit 4.28

     17. This Bond Purchase Agreement may be executed in any number of counterparts, each of which,
when so executed and delivered shall be an original; but such counterparts shall together
constitute but one and the same Bond Purchase Agreement.

     18. In case any one or more of the provisions contained in this Bond Purchase Agreement shall
for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provision of this Bond Purchase
Agreement, but this Bond Purchase Agreement shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein.

21

 

Exhibit 4.28

     19. This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the Underwriter, the Authority, the Company and the Guarantor. This Agreement may be
signed in several counterparts each of which shall be an original and all of which shall constitute
but one and the same instrument.

	 	 	 	 	 	 	 
	 	 	CONNECTICUT DEVELOPMENT AUTHORITY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Karin A. Lawrence
 

	 	 
	 

	 	 	 	     Karin A. Lawrence	 	 
	 

	 	 	 	     Authorized Representative	 	 
	 
	 	 	 	 	 	 
	 	 	THE CRYSTAL WATER COMPANY OF

DANIELSON	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David C. Benoit	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     David C. Benoit, Vice President & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	CONNECTICUT WATER SERVICE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David C. Benoit	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     David C. Benoit, Vice President & CFO	 	 
	 
	 	 	 	 	 	 
	 	 	A.G. EDWARDS & SONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Craig A. Hrinkevich	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	     Craig A. Hrinkevich, Vice President and	 	 
	 

	 	 	 	     Managing Director	 	 

22

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