Document:

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                                 EXHIBIT 10.6B
                AMENDMENT TO THE 401(K) RETIREMENT SAVINGS PLAN
                          OF SOUTHWEST WATER COMPANY

          Southwest Water Company adopted the Utility Employees' 401(k) Plan
(the "Plan"), effective as of January 1, 1994, for the benefit of its eligible
employees and the eligible employees of certain of its subsidiaries. The Plan
was subsequently amended and restated effective as of January 1, 2000, and was
renamed "The 401(k) Retirement Savings Plan of Southwest Water Company."

          Southwest Water Company maintained the Utility Employees' Retirement
Plan (the "Retirement Plan") for the benefit of its eligible employees and the
eligible employees of certain of its subsidiaries. Effective as of December 30,
1999, the Retirement Plan was terminated. Pursuant to the terms of the
Retirement Plan, certain surplus assets may be transferred from the Retirement
Plan to the Plan in accordance with the provisions of the Internal Revenue Code
of 1986, as amended (the "Code"), and the Employee Retirement Income Security
Act of 1974, as amended, prior to any reversion to Southwest Water Company and
its subsidiaries. The amount of surplus assets to be transferred will be
determined by the Board of Directors of Southwest Water Company. The transfer of
surplus assets from the Retirement Plan to the Plan is intended to comply with
the provisions of Code Section 4980(d)(2), and the Plan is intended to be a
"qualified replacement plan" with respect to the Retirement Plan under Code
Section 4980(d)(2).

          In order to amend the Plan to provide for such transfer of surplus
assets from the Retirement Plan to the Plan, this Amendment to the Plan has been
adopted by resolution of the Board of Directors of Southwest Water Company,
effective as provided herein.

          Effective as of January 1, 2002, new Section 11.05 is hereby added to
Article 11 of the Basic Plan Document of the Plan to read in its entirety as
follows:

                   11.05   Suspense Account. The provisions of this Section
                           ----------------
        shall apply to any surplus assets transferred in accordance with Section
        7.12 of the Utility Employees' Retirement Plan (the "Retirement Plan")
        from the Retirement Plan to the Plan in connection with the termination
        of the Retirement Plan. Any such surplus assets transferred to the Plan
        shall be referred to herein as the "Surplus Assets."

                           (a)   For purposes of this Section, the "Suspense
          Account" shall mean an account established on the books of the Trust
          for the purpose of recording the transfer of the Surplus Assets from
          the Retirement Plan to the Plan, and any income, expenses, gains or
          losses incurred thereon.

                           (b)   The amount of the Surplus Assets shall be
          credited to the Suspense Account at the time of transfer from the
          Retirement Plan to the Plan. Any income, expenses, gains or losses
          incurred on the amounts credited to the Suspense Account shall be
          credited or debited to such Suspense Account. Any
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     amounts allocated to the Accounts of Participants pursuant to this Section
     shall be debited from the Suspense Account.

               (c)    Subject to subsections (d), (e) and (f), the amounts
     credited to the Suspense Account shall be allocated to the Accounts of
     Participants in the Plan as follows:

                      (1)   Such amounts first shall be allocated from the
          Suspense Account with respect to a Plan Year in the amount of the
          Matching Contributions required to be made by the Employer under
          Section 1.05(c)(1) of the Adoption Agreement of the Plan and Section
          4.03 of the Basic Plan Document of the Plan for such Plan Year. The
          amounts so allocated from the Suspense Account shall be allocated as
          Matching Contributions under the Plan, and the obligations of the
          Employer to make Matching Contributions shall be reduced accordingly.

                      (2)   Such amounts then shall be allocated from the
          Suspense Account with respect to a Plan Year in the amount of the
          Fixed Employer contributions required to be made by the Employer in
          accordance with Section 1.05(a)(1) of the Adoption Agreement of the
          Plan and Section 4.06(a) of the Basic Plan Document of the Plan for
          such Plan Year. The amounts so allocated from the Suspense Account
          shall be allocated as Fixed Employer contributions under the Plan, and
          the obligation of the Employer to make Fixed Employer contributions
          shall be reduced accordingly.

                      (3)   To the extent necessary to satisfy the requirements
          of subsection (d), such amounts then shall be allocated from the
          Suspense Account with respect to a Plan Year and allocated in the
          manner in which Discretionary Employer contributions are allocated in
          accordance with Section 1.05(a)(2) of the Adoption Agreement of the
          Plan and Section 4.06(b) of the Basic Plan Document of the Plan.

               (d)    Except as provided in subsection (f), in no event shall
     the amounts credited to the Suspense Account be allocated from the Suspense
     Account to the Accounts of Participants less rapidly than ratably over the
     seven Plan Year period beginning with the Plan Year in which the Surplus
     Assets are transferred from the Retirement Plan to the Plan. Except as
     provided in subsection (f), any income, expenses, gains or losses credited
     to the Suspense Account shall be allocated to the Accounts of Participants
     no less rapidly than ratably over the remainder of the period determined
     under the preceding sentence, after the application of subsection (e).

               (e)    The amounts allocated from the Suspense Account to the
     Accounts of Participants shall be treated as Employer contributions for
     purposes of Code Sections 401(a) and 401(m) and as Annual Additions for
     purposes of Code Section 415. If, by reason of any limitation under Code
     Section 415, any
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     amount credited to the Suspense Account may not be allocated to a
     Participant before the close of the seven Plan Year period under subsection
     (d):

                    (1)  Such amount shall be allocated to the Accounts of other
          Participants, and

                    (2)  If any portion of such amount may not be allocated to
          other Participants, by reason of any such limitation, such portion
          shall be allocated to the Participant as provided in Code Section 415.

               (f)  If any amount credited to the Suspense Account is not
     allocated as of the termination date of the Plan:

                    (1)  Such amount shall be allocated to the Accounts of
          Participants as of such termination date, except that any amount which
          may not be allocated to any Participant by reason of any limitation
          under Code Section 415 shall be allocated to the Accounts of other
          Participants, and

                    (2)  If any portion of such amount may not be allocated to
          other Participants under paragraph (1) by reason of such limitation,
          such portion shall be treated as an Employer reversion to which Code
          Section 4980 applies.

     IN WITNESS WHEREOF, Southwest Water Company has caused this Amendment to be
executed by the duly authorized officer of Southwest Water Company this 2/nd/
                                                                        -----
day of January 2002.
       ------------

                                                SOUTHWEST WATER COMPANY

                                                  By: /s/ PETER J. MOERBEEK
                                                  -------------------------

                                                  Title: Chief Financial Officer
                                                  ------------------------------<PAGE>

                                EXHIBIT 10.12 A
                             AMENDMENT NUMBER ONE
                              TO CREDIT AGREEMENT
                              -------------------

     THIS AMENDMENT NUMBER ONE TO CREDIT AGREEMENT (the "Amendment") is made and
entered into as of March 8, 2000 by and between SUBURBAN WATER SYSTEMS, a
California corporation ("Borrower"), and BANK OF AMERICA, N.A. (the "Bank"),
with respect to the following:

                                   RECITALS
                                   --------

     A.   Borrower and Bank are parties to a certain credit agreement dated as
of July 30, 1999 (with all prior amendments thereto, the "Credit Agreement).
Bank and Southwest Water Company, a Delaware corporation ("Southwest"), are also
parties to a certain credit agreement dated as of July 30, 1999 (with all prior
amendments thereto, the "Southwest Agreement").

     B.   The Southwest Agreement contains a series of negative covenants by
Southwest in Section 6.02 thereof. The Credit Agreement contains a series of
negative covenants by Borrower and Southwest in Section 6.02 thereof. It was and
is the intention of the Bank, Southwest and Borrower that the negative covenants
in the Southwest Agreement and the Credit Agreement be consistent and not in
conflict with each other.

     C.   The Bank and Borrower have determined that one negative covenant in
the Credit Agreement may be read to conflict with its counterpart in the
Southwest Agreement. This Amendment is executed and delivered to eliminate such
apparent conflict.

                                   AGREEMENT
                                   ---------

     IN CONSIDERATION OF the foregoing recitals and the agreements contained
herein, the Bank and Borrower agree as follows:

     1.   Restatement and Covenant. Clause (ii) of Section 6.02(k) of the Credit
          ------------------------
agreement shall be amended to read, in its entirety, as follows:

          "(ii) continue to own existing capital stock of the Borrower's
          Subsidiaries (in the case of Borrower); provided, however, that
                                                  --------- --------
          Southwest (but not Borrower) may (A) continue to own the existing
          capital stock of Borrower and Southwest's other Subsidiaries and (B)
          make new purchases of the capital stock of or other equity interests
          in other entities as long as such new investments do not exceed in the
          aggregate Five Million Dollars ($5,000,000) outstanding at any time,
          in each case without the Bank's prior written approval;"

                                      -1-
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     2.   Counterparts. This Agreement may be executed in two or more
          ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute a single instrument. It shall not be necessary for
Borrower and Bank to execute the same couterpart(s) of this Amendment for this
Amendment to become effective.

     3.   Defined Terms.  All terms used in the Amendment with initial capital
          -------------
letters and not defined herein shall have the meanings given to such terms in
the Credit Agreement.

     4.   Credit Agreement in Effect. Borrower and the Bank agree and
          --------------------------
acknowledge that the Credit Agreement, as hereby amended, remains in full force
and effect in accordance with its terms.

     IN WITNESS WHEREOF, Borrower and the Bank have executed this March 2000
Amendment to Credit Agreement to be effective as of the date first set forth
above.

BANK OF AMERICA, N.A.                           SUBURBAN WATER SYSTEMS,
                                                a California corporation

By /s/ DEBORAH L. MILLER                        By /s/ DANIEL N. EVANS
------------------------                        ----------------------

Name: Deborah L. Miller                         Name: Daniel N. Evans
-----------------------                         ---------------------

Title: Senior Vice President                    Title: VP Finance and CFO
----------------------------                    -------------------------

         "Bank"                                 By /s/ PETER J. MOERBEEK
                                                ------------------------

                                                Name: Peter J. Moerbeek
                                                -----------------------

                                                Title: Secretary
                                                ----------------

                                                               "Borrower"

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