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<SEC-DOCUMENT>0001299933-05-002639.txt : 20050611
<SEC-HEADER>0001299933-05-002639.hdr.sgml : 20050611
<ACCEPTANCE-DATETIME>20050601163543
ACCESSION NUMBER:		0001299933-05-002639
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050525
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050601
DATE AS OF CHANGE:		20050601

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CONSOLIDATED WATER CO LTD
		CENTRAL INDEX KEY:			0000928340
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER SUPPLY [4941]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25248
		FILM NUMBER:		05871158

	BUSINESS ADDRESS:	
		STREET 1:		TRAFALGAR PL
		STREET 2:		WEST BAY RD
		CITY:			GRAND CAYMAN BWI CAY
		STATE:			E9
		ZIP:			00000
		BUSINESS PHONE:		8099474277

	MAIL ADDRESS:	
		STREET 1:		TRAFALGAR PLACE, WEST BAY ROAD, P.O. BOX
		STREET 2:		GRAND CAYMAN, CAYMAN ISLANDS, BWI

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAYMAN WATER CO LTD
		DATE OF NAME CHANGE:	19941212
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>htm_5042.htm
<DESCRIPTION>LIVE FILING
<TEXT>
<!-- CoverPageHeader start -->
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> Consolidated Water Co. Ltd. (Form: 8-K) </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">
<A NAME="DOCUMENT_TOP">&nbsp;</A>
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<FONT SIZE="4">
		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
</FONT>
<BR>
<FONT SIZE="2">
	WASHINGTON, D.C. 20549
</FONT>
<P ALIGN="CENTER">
<FONT SIZE="5">
	FORM 8-K
</FONT>
<FONT SIZE="2">

</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="3">
	CURRENT REPORT
</FONT>
</P>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
</FONT>
</P>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
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	&nbsp;
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	&nbsp;
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	&nbsp;
</TD>
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<FONT SIZE="2">
	Date of Report (Date of Earliest Event Reported):
</FONT>
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<TD>
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	&nbsp;
</FONT>
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<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	May 25, 2005
</FONT>
</TD>
</TR>
</TABLE>
<BR>
</CENTER>
<!-- CoverPageTitle END --><!-- CoverPageRegistrant START -->
<P ALIGN="CENTER"><!-- -->
<FONT SIZE="6">
	Consolidated Water Co. Ltd.
</FONT>
<FONT SIZE="2">
<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
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	&nbsp;
</TD>
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	&nbsp;
</TD>
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	&nbsp;
</TD>
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<FONT SIZE="2">
	Cayman Islands
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	0-25248
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Not Applicable
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________________<BR>
	(State or other jurisdiction
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
_____________<BR>
	(Commission
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
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______________<BR>
	(I.R.S. Employer
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	of incorporation)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	File Number)
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	Identification No.)
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
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	&nbsp;
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	&nbsp;
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<TD ALIGN="CENTER" VALIGN="TOP">
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	Windward Three-4th Fl, West Bay Road, P.O. Box 1114 GT, Grand Cayman, Cayman Islands
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
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	none
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</TD>
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_________________________________<BR>
	(Address of principal executive offices)
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<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
___________<BR>
	(Zip Code)
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
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<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">

<TR VALIGN="BOTTOM">
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	&nbsp;
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	&nbsp;
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	&nbsp;
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<FONT SIZE="2">
	Registrant&#146;s telephone number, including area code:
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="CENTER" VALIGN="TOP">
<FONT SIZE="2">
	345-945-4277
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
<P ALIGN="CENTER">
<FONT SIZE="2">
	Not Applicable
<BR>______________________________________________<BR>
	Former name or former address, if changed since last report
</FONT>
<P ALIGN="CENTER">
<FONT SIZE="2">
	&nbsp;
</FONT>
<!-- CoverPageRegistrant END --><P><FONT SIZE="2">
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:</FONT>
</P>
<P><FONT SIZE="2">
[&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
[&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
</P></FONT><!-- PageBreak START -->
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<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
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<P ALIGN="LEFT">
<FONT SIZE="2">
<B>
	Item 1.01. Entry into a Material Definitive Agreement.
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
On May 25, 2005, Consolidated Water Co. Ltd. (the "Company") entered into a loan agreement with Ocean Conversion (BVI) Ltd. ("Ocean Conversion"), pursuant to which the Company has agreed to loan to Ocean Conversion up to U.S.$3.0 million to be applied by Ocean Conversion for the design, construction and commissioning of a 500,000 Imperial gallon per day seawater desalination plant (the "Plant") at Bar Bay, Tortola, British Virgin Islands.  The Company, through its ownership of 100% of the capital stock of DesalCo Limited, owns 50% of the voting stock of Ocean Conversion and 50% of certain profit sharing rights in Ocean Conversion.  <br><br>The principal amount of the loan is due and payable on June 1, 2007.  Interest accrues at the rate of the 90-day LIBOR rate plus 3.5% on amounts drawn down by Ocean Conversion for the construction of the Plant and is payable quarterly in April, July, October and January of each year until the outstanding principal and accrued interest is paid in full.  While Ocean Conversi
on's bank indebtedness of  approximately $500,000 remains outstanding, all amounts borrowed under the loan agreement will be subordinated to such bank indebtedness. All outstanding principal and interest under the loan agreement may be prepaid in full without penalty.<br>
</FONT>
</P>
<!-- Item END -->
<BR><BR><BR><BR><!-- Item START -->
<P ALIGN="LEFT">
<FONT SIZE="2">
<B>
	Item 9.01. Financial Statements and Exhibits.
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
(c) Exhibits.<br><br>Exhibit No. - Title<br>99.1 - Loan Agreement dated May 25, 2005 between Consolidated Water Co. Ltd. and Ocean Conversion (BVI) Ltd.<br>
</FONT>
</P>
<!-- Item END -->
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<P>
<HR NOSHADE>
<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
<A HREF="#DOCUMENT_TOP">
<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
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<P ALIGN="CENTER">
<FONT SIZE="2">
<B>
	SIGNATURES
</B>
</FONT>
</P>
<P ALIGN="LEFT">
<FONT SIZE="2">
	Pursuant to the requirements of the Securities Exchange Act of 1934, the
	registrant has duly caused this report to be signed on its behalf by the
	undersigned hereunto duly authorized.
</FONT>
</P>
<!-- SignatureHeader END --><!-- Signature START -->
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
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	&nbsp;
</TD>
<TD WIDTH="34%">
	&nbsp;
</TD>
<TD WIDTH="3%">
	&nbsp;
</TD>
<TD WIDTH="1%">
	&nbsp;
</TD>
<TD WIDTH="43%">
	&nbsp;
</TD>
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<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD COLSPAN="3" VALIGN="TOP" ALIGN="LEFT">
<FONT SIZE="2">
	Consolidated Water Co. Ltd.
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
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<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
<I>
	June 1, 2005
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	By:
</I>
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Frederick W. McTaggart
</I>
<BR>
</FONT>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<HR SIZE="1" NOSHADE>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Name: Frederick W. McTaggart
</I>
</FONT>
</TD>
</TR>
<TR VALIGN="BOTTOM">
<TD VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
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</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Title: President and Chief Executive Officer
</I>
</FONT>
</TD>
</TR>
</TABLE>
</CENTER>
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<DIV ALIGN="LEFT" STYLE="PAGE-BREAK-BEFORE:ALWAYS">
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<U>
<B>
<FONT SIZE="2">Top of the Form</FONT>
</B>
</U>
</A>
</DIV>
<!-- PageBreak END --><P ALIGN="CENTER">
<FONT SIZE="2">
	Exhibit&nbsp;Index
</FONT>
<CENTER>
<TABLE CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="60%">
<TR VALIGN="BOTTOM">
<TD WIDTH="8%">
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	&nbsp;
</TD>
<TD WIDTH="77%">
	&nbsp;
</TD>
</TR>

<BR>
<TR VALIGN="BOTTOM">
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Exhibit No.
</B>
</FONT>
</TD>
<TD>
<FONT SIZE="1">
	&nbsp;
</FONT>
</TD>
<TD NOWRAP ALIGN="LEFT">
<FONT SIZE="1">
<B>
	Description
</B>
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</TD>
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<HR SIZE="1" NOSHADE>
</TD>
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	&nbsp;
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</TD>
</TR>





<TR VALIGN="BOTTOM">
<TD VALIGN="TOP" WIDTH="8%" nowrap>
<FONT SIZE="2">
<DIV ALIGN="LEFT">
	99.1
</DIV>
</FONT>
</TD>
<TD WIDTH="15%">
<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
<TD ALIGN="LEFT" VALIGN="TOP" WIDTH="77%">
<FONT SIZE="2">
Loan Agreement dated May 25, 2005 between Consolidated Water Co. Ltd. and Ocean Conversion (BVI) Ltd.
</FONT>
</TD>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-99.1 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>EXHIBIT 99.1</B></FONT>



<P align="center" style="font-size: 12pt"><FONT style="font-size: 16pt"><U><B>LOAN AGREEMENT</B></U></FONT>



<P align="left" style="font-size: 16pt"><FONT style="font-size: 12pt"><B>THIS AGREEMENT </B>is made the 25th day of May, 2005,</FONT>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="82%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>BETWEEN:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>OCEAN CONVERSION (BVI)&nbsp;LTD. </B>of Baughers Bay, Tortola,<BR>
British Virgin Islands, a Company incorporated under the<BR>
laws of the British Virgin Islands and having its<BR>
Registered Office at McNamara Corporate Services Limited,<BR>
2<sup>nd</sup> Floor, 116 Main Street, P.O. Box 3342, Road<BR>
Town, Tortola, British Virgin Islands (&#147;the Borrower&#148;)</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>AND:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CONSOLIDATED WATER CO. LTD. </B>a Company incorporated under<BR>
the laws of the Cayman Islands and having its Registered<BR>
Office at Trafalgar Place, West Bay Road, P.O. Box 1114 GT,<BR>
Grand Cayman, Cayman Islands (&#147;the Lender&#148;)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 12pt"><U><B>RECITALS</B></U><B>:-</B>


<P align="left" style="font-size: 12pt">The Lender has agreed to grant a loan to the Borrower in the amount of Three Million United States
Dollars (US$3,000,000.00) to be applied by the Borrower for the design, construction and
commissioning of a 500,000 Imperial gallon per day seawater desalination plant at Bar Bay, Tortola,
British Virgin Islands (&#147;the Property&#148;) on the terms of this Agreement.


<P align="left" style="font-size: 12pt"><B>NOW THIS AGREEMENT WITNESSES </B>as follows:


<P align="left" style="font-size: 12pt"><U><B>INTERPRETATION</B></U>


<P align="left" style="font-size: 12pt"><B>1.&nbsp;</B>In this Agreement, unless inconsistent with the context, subject matter or circumstances:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;the Bank&#148; means Scotiabank (Cayman Islands) Ltd of 6 Cardinal Avenue, George Town,
Grand Cayman, B.W.I.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;the Bank&#146;s indebtedness&#148; means all sums due and to become due from the Borrower to the
Bank on any account whatever, whether as principal or surety, and whether present or
future, actual or contingent and joint or separate.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(3) &#147;the Borrower&#148; includes persons deriving title under the Borrower.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Business Day&#148; means a day which is not a Saturday, Sunday or public holiday, and on
which &#147;A&#148; licensed banks in the Cayman Islands are open for business.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 12pt">



</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Control&#148; in relation to a body corporate or other entity (&#147;X&#148;) means the power of a
Person (&#147;Y&#148;) by having:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:3%; font-size: 12pt">i. voting power in or in relation to X or any other body corporate or entity, or


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="7%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">ii.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>power under any contract or document, or otherwise to secure that X&#146;s affairs are
conducted in accordance with Y&#146;s wishes.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(6) &#147;the Due Date&#148; means the 1<sup>st</sup> day of June&nbsp;2007.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;the Lender&#148; includes its successors in title and assigns whether immediate or
derivative.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Lien&#148; means, with respect to any property, any mortgage, lien, pledge, charge, lease,
easement, servitude, right of others, security interest or encumbrance of any kind over or
in respect of property. For the purposes of this definition, any person will be deemed to
own subject to a Lien any property which it has acquired or holds subject to the interest
of a seller or lessor under any conditional sale agreement, capital lease or other title
retention agreement (other than an operating lease) relating to that property.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;the Principal Sum&#148; means the sum of Three Million United States Dollars
(US$3,000,000.00).</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;the Subordinated Indebtedness&#148; means all sums due or to become due from the Borrower
to the Lender under this Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An obligation imposed is to be performed, and a right, power or discretion conferred is
exercisable, in each case, from time to time.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>An obligation not to do something includes an obligation not to permit or suffer others
to do it.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(13)&nbsp;Notice, consent and approval must be in writing.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Words of one gender include any other gender and singular words include the plural and
vice versa and words importing persons and all references to persons include corporations
and firms.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any reference in this Agreement to any statute includes reference to any statutory
modification or re-enactment of it for the time being in force.</TD>
</TR>


</TABLE>

<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->


<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 12pt">



</TABLE>


<P align="left" style="font-size: 12pt"><U><B>PAYMENTS</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In consideration of the financial and other facilities granted by the Lender to the Borrower,
the Borrower agrees with the Lender:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to pay interest on the Principal Sum or on so much of it as is or remains outstanding
at such rate as the Lender determines to be three and one-half percent (3<FONT style="font-size: 75%">1/2</FONT>%) per annum over
and above the 90&nbsp;day London Inter Bank Offer Rate for United States Dollars quoted by
Scotiabank (Cayman Islands) Limited on the date of each drawdown in accordance with clause
8. Such payments shall be made on the first day of the relevant calendar quarter (as the
case may be), calculated daily and payable quarterly on the first Business Days of the
months of April, July, October and January in each year.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to repay the Principal Sum on the Due Date together with such interest as is then
outstanding, at the rate provided for above; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to make all payments under this Agreement and in particular payments of interest (so
far as the laws of the Cayman Islands permit) free and clear and net of any taxes,
deductions or withholdings of any kind whatever all such taxes, deductions and withholdings
being payable by the Borrower unless the Borrower is obliged by law to make any deduction
or withholding in which event the Borrower must pay to the Lender such additional amount as
enables the Lender to receive net after all taxes, deductions or withholdings the amount it
would have received in the absence of those taxes, deductions or withholdings.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>EVENTS OF DEFAULT</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Despite any other provisions of this Agreement the Principal Sum, interest and all other
money payable under it will become immediately payable on the happening of any of the
following events:</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(1)&nbsp;if the Borrower defaults in paying any money due and owing under this Agreement; or


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any representation or warranty made in or in connection with this Agreement or the
execution and delivery of it or in any document or certificate furnished pursuant to it
proves at any time to have been incorrect in any material respect; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower defaults in performing or observing any agreement, covenant,
stipulation or obligation whether negative or otherwise contained or implied in this
Agreement or in any other agreement, whether or not creating a Lien, granted by it, (other
than obligations in respect of the payment of any money under this Agreement); or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if by or under the authority of any Government the Borrower&#146;s management or its
authority in the conduct of its business is in the Lender&#146;s opinion curtailed to the point
of making it effectively inoperative by any seizure or intervention or proceedings of any
nature; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a judgment against the Borrower for any sum exceeding Ten Thousand United States
Dollars (US$10,000.00) or an order involving the payment by the Borrower of Ten Thousand
United States Dollars (US$10,000.00) or more without the necessity of judgement is obtained
in any Court, remains unsatisfied for seven (7)&nbsp;days unless in the event of a judgment or
order involving payment which exceeds Ten Thousand United States Dollars (US$10,000.00)
which the Borrower disputes by appeal promptly brought and diligently pursued it posts a
bond satisfactory to the Lender for full satisfaction of it; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if a distress or execution is levied or enforced on or against any of its assets and is
not satisfied within five (5)&nbsp;days of the levy or enforcement of the distress or execution;
or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower without the Lender&#146;s consent (which is given in respect of any Lien
created by any prior agreement of which the Lender is aware) assigns any of its book debts
or creates or purports or attempts to create Lien; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower makes or attempts to make any alteration to the provisions of its
Memorandum or Articles of Association which might in the Lender&#146;s opinion materially
adversely affect its interests under this Agreement and which alteration has not been
approved by the Lender and approval has not been unreasonably withheld or fails or neglects
to comply in any material respect with any or all of the laws of the Cayman Islands in so
far as they may relate to it; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if an order is made or an effective agreement is made or resolution is passed for
winding up the Borrower except for the purpose of a reconstruction or amalgamation the
terms of which have been previously approved by the Lender; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if an incumbrancer takes possession or a Receiver is appointed of any part of the
Borrower&#146;s assets; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower ceases or threatens to cease to carry on its business or substantially
the whole of its business; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower sells or agrees to sell the whole or any substantial part of its
undertaking otherwise than with the Lender&#146;s prior consent; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the Borrower is unable to pay its debts within the meaning of Section&nbsp;95 of the
Companies Law (2004 Revision) of the Cayman Islands; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if any member of the Borrower transfers any shares in the Borrower without first
obtaining the Lender&#146;s written consent; or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if at any time the Lender in good faith determines that a material adverse change in
the Borrower&#146;s financial condition has occurred or that the Borrower is unlikely to be able
to meet any of its obligations under this Agreement..</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>FURTHER ASSURANCES</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower irrevocably appoints the Lender and every Attorney and every assign of the
Lender to be the Borrower&#146;s attorney in the name and on behalf of the Borrower to execute and
give any assurances and other things which the Borrower ought to execute and do under this
Agreement and generally to use the Borrower&#146;s name in the exercise of all or any of the powers
conferred on the Lender.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>BORROWER&#146;S GOOD STANDING</B></U>


<P align="left" style="font-size: 12pt"><B>5.&nbsp;</B>The Borrower represents and warrants to the Lender that:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is a duly organised corporation existing in good standing under the Laws of the
British Virgin Islands;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it is duly qualified to do business wherever necessary to carry on its present
operations and will continue so while this Agreement subsists;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the execution, delivery and performance by the Borrower of this Agreement have been
duly authorised by all necessary corporate action on the Borrower&#146;s part;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>this Agreement when executed will be properly executed and delivered by the Borrower
and will constitute the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with its terms, except as enforceability may be limited
by:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>applicable bankruptcy, insolvency, reorganisation, moratorium or other similar
laws affecting the enforcement of creditors&#146; rights generally, and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the application of general principles of equity (regardless of whether
enforceability is considered in a proceeding at law or in equity);</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the execution, delivery and performance by the Borrower of this Agreement and the
consummation of the transactions contemplated by it do not and will not:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>require any consent or approval of any person that has not been obtained, and
each such consent and approval that has been obtained is in full force and effect,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>violate any provision of any Law, Regulation or Governmental approval,
applicable to the Borrower,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>conflict with, result in a breach of or constitute a default under the
Borrower&#146;s Memorandum of Association or Articles of Association or any material
indenture or loan or credit agreement or any other agreement, lease or instrument to
which the Borrower is a party or by which it is bound, or</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>result in, or create any Lien on or with respect to any of the properties now
owned or subsequently acquired by the Borrower.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>there is no action, suit or proceeding, at law or in equity or by or before any court,
arbitration tribunal or other body now pending or, to the best knowledge of the Borrower,
threatened against or affecting the Borrower or any of its property, which could reasonably
be expected to materially adversely affect the Borrower or its financial condition and
operations;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>as of the date of this Agreement, neither the business nor any properties of the
Borrower are or have been affected by any fire, explosion, accident, strike, lockout or
other labour dispute, earthquake, embargo, act of God or of the public enemy or other
casualty (whether or not covered by insurance) that could reasonably be expected to
materially adversely affect the Borrower or its financial condition and operations;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>neither the Borrower nor any of its assets has any immunity from jurisdiction of any
court or from any legal process (whether through service, notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) under the laws of the
British Virgin Islands;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it will use the Principal Sum solely in accordance with and solely for the purposes
referred to in the Recital and not for any other purpose;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>BORROWER&#146;S FURTHER AGREEMENTS</B></U>


<P align="left" style="font-size: 12pt"><B>6.&nbsp;</B>The Borrower further agrees with the Lender as follows:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to effect builders risk insurance on all buildings and structures in the course of
construction on its property (including plant and machinery and any unfixed materials and
goods for which the Borrower has paid) and to insure and at all times keep insured by way
of an all risks insurance policy (converting the first to the second where applicable)
against loss or damage by fire, earthquake, explosion, hurricane, windstorm, flood,
malicious damage, riot, civil commotion and fire arising from them respectively, accidental
damage, theft and such other risks as the Lender requires all its property of an insurable
nature to its full insurable value (or, if any of its property is a strata lot and the
strata corporation has insured for less than replacement value, to an amount equal to the
difference between the amount so insured in respect of that property and the replacement
value of that property to the extent that such insurance is available) to the Lender&#146;s
satisfaction in an insurance office acceptable to the Lender and subject to the rights of
the holder of any charge on demand to deliver to the Lender all those policies of insurance
and all receipts and vouchers for the payment of premiums and to deliver a copy of every
policy to the Lender within fourteen (14)&nbsp;days of receipt by the Borrower and a copy of the
cover note on issue and on all renewals within seven (7)&nbsp;days of the issue or renewal;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(2)&nbsp;to maintain such public liability and other insurances as the Lender requires;


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to do or omit anything which may render any insurances effected in accordance with
this Agreement void or voidable or whereby any premium may be increased;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at all times while this Agreement exists to keep up, maintain and preserve all its
property in good and merchantable order and condition;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>except in the ordinary course of use or enjoyment or for the purpose of effecting
repairs not to part with the possession of nor to remove any of its property from the
premises where it is usually stored or kept nor in any event to remove it from the British
Virgin Islands without the Lender&#146;s consent; and to report annually to the Lender
concerning the machinery, fixtures, equipment and vehicles which the Borrower sells or
otherwise disposes of or which become worn out or damaged or otherwise become unsuitable
and any replacement of or addition to them;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to transfer, lease, let or hire or part with the possession or create any Lien or
make any assignment on or of its property without the Lender&#146;s consent;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(7)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to carry on and conduct and procure that its subsidiaries from time to time carry on
and conduct its and their respective businesses and affairs in a proper and efficient
manner and not, without the prior written consent of the Lender, to make any substantial
alteration in the nature of those businesses;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to sell or otherwise dispose of the whole or any substantial part of its
undertaking or assets without the Lender&#146;s consent;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(9)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to incur any additional debt to its bankers or any other lender without the
Lender&#146;s consent;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(10)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to make any loans or advances of any kind to any of its directors or officers or
any entity controlled by or under common control with the Borrower or any of its directors
or officers;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(11)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>not to enter into any guarantees or incur any other contingent liabilities without the
Lender&#146;s consent;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(12)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to pay to the Lender on demand all costs, charges and expenses which the Lender incurs
in the preparation stamping, completion or otherwise in relation to this Agreement or any
default under it or the protection or enforcement of any of the Lender&#146;s rights under it on
an indemnity basis together with the stamp duty on it;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(13)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to allow the Lender by its officers, servants or agents at all times while this
Agreement exists with or without workmen, agents or servants to enter on any of the
Borrower&#146;s premises or any part of them and inspect and search the state and condition of
the property or any part of it with full and free power to come, go and return for that
purpose and to give or leave notice to the Borrower of all decays, defects and wants of
preservation and maintenance found on the inspection who must immediately make good, repair
and supply according to any notice so given so as at all times to keep up, maintain and
preserve its property in good order and condition;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(14)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>at all times while this Agreement exists to pay all licence fees and duties assessable
on any part of the Property and the rents, rates and taxes on the several premises in which
the Property or any part of it is and to keep the Property from being distrained for rents,
rates or taxes or from being taken under any execution and at all times to produce on
demand to the Lender the receipts for those rents, rates and taxes;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(15)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>duly and punctually to perform and observe all the covenants, agreements, contracts and
other stipulations whatever as are not inconsistent with its obligations under this
Agreement and as are for the time being and from time to time binding on it, its business
or other assets (including without limitation the Borrower&#146;s contract with the Government
of the British Virgin Islands to produce potable water from seawater) and not to do or omit
anything whereby any lease, licence, contract or agreement for the time being and from time
to time granted to or held by the Borrower may become liable to forfeiture or otherwise be
determined.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(16)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>to deliver to the Lender within one hundred and twenty (120)&nbsp;days of the end of each of
its financial years a balance sheet, profit and loss account and trading account showing
the true position of the Borrower&#146;s affairs in that year certified either by a Chartered
Accountant approved by the Lender or by the Borrower&#146;s auditor for the time being if
approved by the Lender and also on demand to furnish such other information respecting the
monthly trading and operating figures as well as the Borrower&#146;s assets and liabilities as
the Lender requires;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">(17)&nbsp;not without obtaining the Lender&#146;s prior consent to:



<P align="left" style="margin-left:4%; font-size: 12pt">(a)&nbsp;declare and pay any dividend or make any distribution whatever; or



<P align="left" style="margin-left:4%; font-size: 12pt">(b)&nbsp;repay any shareholder or director loan or indebtedness; or



<P align="left" style="margin-left:4%; font-size: 12pt">(c)&nbsp;reduce its capital or redeem or purchase any of its shares; or


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>make any capital expenditure in excess of One Hundred Thousand United States
Dollars (US$100,000.00) or its equivalent in any calendar year; or</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 12pt">(e)&nbsp;make any expenditures otherwise than in the ordinary course of business; or


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>do anything that will result in any change in its shareholdings as constituted
on the date of this Agreement.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>ADVANCES ON BREACH</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Lender may but is not obliged to advance and pay all sums of money necessary for carrying
out the terms and conditions of this Agreement or remedying any breach of agreement or
obligation whether imposed on the Borrower under the provisions of this Agreement or implied
by law and all money so paid and all costs and expenses incurred by the Lender in relation to
any inspection and notice or the repairs or amendments mentioned in clause 6(13) will be
repayable on demand and will bear interest at the rate or rates mentioned above for the
payment of interest on the Principal Sum.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>GENERAL</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provided that the Borrower is not in default of this Agreement, the Borrower shall be
entitled to serve a notice on the Lender calling upon the Lender to advance to the Borrower
such sums being not less than FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) currency of the
United States of America in each instance, which sums when added together shall not in the
aggregate exceed the Principal Sum. Each such notice shall specify the date upon which such
sum is required, which date shall not be earlier than the expiry of three (3)&nbsp;Business Days
from the date when the notice is served. The Borrower shall evidence that drawdown by giving
the Lender a promissory note in a form acceptable to the Lender as exhibited and attached
hereto, the face value to be the equivalent to the amount so advanced. For the purposes of
this Agreement such sums shall be deemed to be advanced on the actual date of payment of the
advance by the Lender.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower may prepay the whole or any part of the Principal Sum on any due date for
payment of interest if it has given the Lender not less than 7&nbsp;days&#146; notice of its intention
to prepay and on that date pays all interest accrued. Each prepayment must be in multiples of
US$1,000, with a minimum of US$100,000.00 and no amount so prepaid may be re-borrowed.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;No neglect, omission or forbearance on the Lender&#146;s part to take advantage of or enforce
any right or remedy arising out of any breach or non-observance of any covenant or condition
in this Agreement contained or implied will be deemed to be or operate as a general waiver of
that covenant or condition or the right to enforce or take advantage of it in respect of any
breach or non-observance of it either original or recurring.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any of the Lender&#146;s rights or powers may be exercised in its unfettered discretion and
the Lender will not be obliged to give any reasons for doing so.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A certificate from the Lender indicating the amount of the Principal Sum outstanding or the
amount of interest owing to the Lender on it and detailing the calculation of those amounts
will be conclusive and binding for all purposes, absent manifest error.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any judgment or order is given or made for the payment of any amount due under this
Agreement and is expressed in a currency other than that in which the amount is payable by the
Borrower under this Agreement, the Borrower will indemnify the Lender against any loss
incurred by the Lender as a result of any variation having occurred in rates of exchange
between the date as at which that amount is converted into the other currency for the purposes
of that judgment or order and the date of actual payment pursuant to it. This indemnity will
constitute a separate and independent obligation of the Borrower and will apply irrespective
of any indulgence granted to the Borrower and will continue in full force and effect despite
any such judgment or order as stated above.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>13.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The taking of a judgment on any covenant in this Agreement will not operate as a merger of
the covenant in the judgment as entered or affect the Lender&#146;s right to interest at the rates
mentioned above.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>14.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any demand or notice may be properly and effectively made given and served to and on the
other party at any time by a letter sent to it either by delivery or by registered post
addressed to it at its address mentioned above and may be signed by any officer, director,
secretary, attorney, agent or lawyer on the delivering party&#146;s behalf and every demand or
notice if delivered will be deemed to be served on the date of delivery and if posted in the
Cayman Islands or the British Virgin Islands will be deemed to have been served on the fourth
day following the date of posting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>SUBORDINATION</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>15.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>While the Bank&#146;s Indebtedness remains outstanding, the Subordinated Indebtedness will in all
respects be subordinated and otherwise deferred to the Bank&#146;s Indebtedness, and to any rights
of set-off or netting of claims between the Company and the Bank, and despite anything in this
Agreement:</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Lender must not require or purport to require the Borrower to repay, pay or
otherwise discharge the Subordinated Indebtedness; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Borrower must not repay, pay or otherwise discharge any part of the Subordinated
Indebtedness;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:2%; font-size: 12pt">without the Bank&#146;s prior written consent.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>16.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower and the Lender each acknowledge the priority given to the Bank&#146;s Indebtedness by
this Agreement, and must not take or attempt to take any action which might, in any way,
affect that priority.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>PROPER LAW AND JURISDICTION</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>17.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(1)&nbsp;This Agreement will be governed by and must be construed solely according to the Laws of
the Cayman Islands.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower submits for all purposes of or in connection with this Agreement to the
jurisdiction of the Courts of the Cayman Islands.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Despite sub-clause (2), the Lender or the Bank may proceed against the Borrower in any
other jurisdiction and bringing proceedings in one or more jurisdictions will not preclude
bringing proceedings in any other jurisdiction.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>SEVERANCE</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>18.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If at any time any provision of this Agreement is or becomes invalid, illegal or
unenforceable, the validity, legality or enforceability of the remaining provisions of this
Agreement will not be impaired.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt"><U><B>HEADINGS</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right"><B>19.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The descriptive headings of the clauses and sub-clauses of this Agreement have no bearing
whatever on the interpretation of any provision of this Agreement.</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="46%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR style="font-size: 12pt" valign="bottom">
    <TD nowrap align="left">EXECUTED for and on behalf of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7" style="border-bottom: 1px solid #000000"><B>OCEAN CONVERSION (BVI) LTD.</B></TD>
</TR>
<TR style="font-size: 12pt" valign="bottom">
    <TD nowrap align="left"><B>OCEAN CONVERSION (BVI)</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>LTD. </B>in the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">/s/ Ermyn Richardson</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Per:                      <BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">/s/ Glenn Harrigan</TD>
</TR>

<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Witness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD>EXECUTED for and on behalf of</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left"><B>CONSOLIDATED WATER CO. LTD.</B><BR></TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>CONSOLIDATED WATER CO.</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>)</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><B>LTD. </B>in the presence of:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">/s/ Frederick W. McTaggart</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Per:                      <BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">/s/ Jeffrey M. Parker</TD>
</TR>

<TR style="font-size: 1px">
    <TD style="border-top: 1px solid #000000"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Witness</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Director<BR></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt; display: none">3


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