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<SEC-DOCUMENT>0001299933-05-003307.txt : 20050707
<SEC-HEADER>0001299933-05-003307.hdr.sgml : 20050707
<ACCEPTANCE-DATETIME>20050707120948
ACCESSION NUMBER:		0001299933-05-003307
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050701
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050707
DATE AS OF CHANGE:		20050707

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:		05942733

	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_5669.htm
<DESCRIPTION>LIVE FILING
<TEXT>
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<TITLE> Consolidated Water Co. Ltd. (Form: 8-K) </TITLE>
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<A NAME="DOCUMENT_TOP">&nbsp;</A>
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		UNITED STATES<BR>
	SECURITIES AND EXCHANGE COMMISSION
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<BR>
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	WASHINGTON, D.C. 20549
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	FORM 8-K
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	CURRENT REPORT
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	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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	Date of Report (Date of Earliest Event Reported):
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	&nbsp;
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	July 1, 2005
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	Consolidated Water Co. Ltd.
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<FONT SIZE="2">
<BR>__________________________________________<BR>
	(Exact name of registrant as specified in its charter)
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	&nbsp;
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	Cayman Islands
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	0-25248
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	Not Applicable
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_____________________<BR>
	(State or other jurisdiction
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_____________<BR>
	(Commission
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______________<BR>
	(I.R.S. Employer
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	of incorporation)
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	File Number)
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	Identification No.)
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	&nbsp;&nbsp;
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	&nbsp;
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	&nbsp;
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	Windward Three-4th Fl, West Bay Road, P.O. Box 1114 GT, Grand Cayman, Cayman Islands
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	&nbsp;
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	none
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_________________________________<BR>
	(Address of principal executive offices)
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	&nbsp;
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___________<BR>
	(Zip Code)
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	Registrant&#146;s telephone number, including area code:
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	&nbsp;
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	345-945-4277
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<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>
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<B>
<FONT SIZE="2">Top of the Form</FONT>
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<P ALIGN="LEFT">
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<B>
	Item 1.01 Entry into a Material Definitive Agreement.
</B>
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<P ALIGN="LEFT">
<FONT SIZE="2">
On July 1st, 2005, Consolidated Water Co. Ltd. (the "Company") issued a Guarantee of the financial obligations of Waterfields Company Limited, a subsidiary of the Company incorporated in the Bahamas ("Waterfields"), under the B$10,000,000 of aggregate principal amount of non-convertible, non-voting, cumulative, redeemable Series A Bonds (the "Series A Bonds") sold by Waterfields solely to Bahamian citizens and permanent resident investors in the Bahamas.  Waterfields will use the proceeds from the sale of the Series A Bonds to finance a portion of the construction of a new seawater desalination plant (the "Blue Hills Plant") on the island of New Providence in the Bahamas and the expansion of the Company&#x2019;s existing seawater desalination plant (the "Windsor Plant") on the island of New Providence.  For additional information regarding the terms of the Guarantee, see the disclosure contained in Item 2.03 of this Form 8-K, which is incorporated herein by reference.
</FONT>
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<B>
	Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
</B>
</FONT>
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<P ALIGN="LEFT">
<FONT SIZE="2">
On February 16, 2005, the Government of the Commonwealth of the Bahamas accepted the bid of the Company and Waterfields to build the Blue Hills Plant.  The Company and Waterfields will also expand the Windsor Plant.  <br><br>To finance part of the construction for the Blue Hills Plant and the expansion of the Windsor Plant, on July 1, 2005, Waterfields sold the Series A Bonds solely to Bahamian citizens and permanent resident investors in the Bahamas.  The Series A Bonds mature on June 30, 2015, at which time the outstanding principal amount of the Series A Bonds must be paid in full.  The Series A Bonds accrue interest at the annual rate of 7.5% of the outstanding principal amount.  Interest payments are payable to the bondholders each year in March, June, September and December.  Waterfields has the option to redeem the Series A Bonds in whole or in part commencing after June 30, 2008.  There is no penalty for early redemption of the Series A bonds after June 30, 2008.<br><br>In order to induce investors t
o purchase Bahamian dollar denominated Series A Bonds, the Company issued a Guarantee of Waterfields&#x2019; obligations to pay all principal and accrued interest under the Series A Bonds to the bondholders.  The Company&#x2019;s obligation to pay all principal and accrued interest due under the Series A Bonds is triggered if and when there is an "event of default," as defined in Section 3 of the Guarantee, which is filed as Exhibit 99.1 to this Form 8-K.  If the Company pays any amounts to the bondholders pursuant to the provisions of the Guarantee, the Company will be subrogated to all rights of the bondholders in respect of any such payments.  The Guarantee is a general unsecured obligation of the Company junior to any secured creditor of the Company.   <br>
</FONT>
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<B>
	Item 9.01 Financial Statements and Exhibits.
</B>
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(c) Exhibits.<br><br>Exhibit No. - Title<br>99.1 - Guarantee of the Company dated July 1st, 2005.<br>
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<FONT SIZE="2">Top of the Form</FONT>
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<P ALIGN="CENTER">
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<B>
	SIGNATURES
</B>
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<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.
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	&nbsp;
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	&nbsp;
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	&nbsp;
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	&nbsp;
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	&nbsp;
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	&nbsp;
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	&nbsp;
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<FONT SIZE="2">
	Consolidated Water Co. Ltd.
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<FONT SIZE="2">
	&nbsp;&nbsp;
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<FONT SIZE="2">
	&nbsp;
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<FONT SIZE="2">
	&nbsp;
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</TD>
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<FONT SIZE="2">
	&nbsp;
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	&nbsp;
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<I>
	July 7, 2005
</I>
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	&nbsp;
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<FONT SIZE="2">
<I>
	By:
</I>
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</TD>
<TD>
<FONT SIZE="2">
	&nbsp;
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<TD ALIGN="LEFT" VALIGN="TOP">
<FONT SIZE="2">
<I>
	Frederick W. McTaggart
</I>
<BR>
</FONT>
</TD>
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<FONT SIZE="2">
	&nbsp;
</FONT>
</TD>
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	&nbsp;
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<FONT SIZE="2">
	&nbsp;
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	&nbsp;
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<HR SIZE="1" NOSHADE>
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	&nbsp;
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	&nbsp;
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	&nbsp;
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	&nbsp;
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<I>
	Name: Frederick W. McTaggart
</I>
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	&nbsp;
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	&nbsp;
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	&nbsp;
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<I>
	Title: President and Chief Executive Officer
</I>
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	Exhibit&nbsp;Index
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<B>
	Exhibit No.
</B>
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	&nbsp;
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	Description
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	99.1
</DIV>
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<FONT SIZE="2">
	&nbsp;
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<FONT SIZE="2">
Guarantee of the Company dated July 1st, 2005.
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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-99.1
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<TITLE> EX-99.1 </TITLE>
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<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: 11pt"><U><B>GUARANTEE</B></U></FONT>



<P align="left" style="font-size: 11pt; text-indent: 4%">This <B>GUARANTEE </B>(the &#147;Guarantee&#148;) is made as of the 1st day of July, 2005 by CONSOLIDATED WATER
CO. LTD. (&#147;Consolidated&#148;), a company incorporated under the laws of the Cayman Islands, in favor of
each holder of non-convertible, non-voting, cumulative, redeemable Series&nbsp;A Bonds of Waterfields
Company Limited, a company incorporated under the laws of the Commonwealth of The Bahamas,
(&#147;Holder&#148; or collectively the &#147;Holders&#148;).


<P align="left" style="font-size: 11pt; text-indent: 4%"><B>WHEREAS, </B>in connection with the offering (the &#147;Offering&#148;) by Waterfields Company Limited
(&#147;Waterfields&#148;) of B$10,000,000.00 of its non-convertible, non-voting, cumulative, redeemable
Series&nbsp;A Bonds (the &#147;Series&nbsp;A Bonds&#148;), Waterfields has agreed, by the terms of the Series&nbsp;A Bonds,
to pay each Holder the principal amount thereof (&#147;Principal&#148;) and interest thereon (&#147;Interest&#148;) at
the rate described in a private placement memorandum dated 20th June, 2005; and


<P align="left" style="font-size: 11pt; text-indent: 4%"><B>WHEREAS, Waterfields </B>has requested Consolidated, as the majority owner of Waterfields, to
provide a guarantee to the Holders on the terms and conditions hereinafter provided; and


<P align="left" style="font-size: 11pt; text-indent: 4%"><B>WHEREAS, Consolidated </B>is willing to enter into this Guarantee to induce Bahamian Holders to
subscribe for and purchase the Bahamian dollar denominated Series&nbsp;A Bonds available in the
Offering; and


<P align="left" style="font-size: 11pt; text-indent: 4%"><B>WHEREAS, </B>Fidelity Share Registrars &#038; Transfer Agents Limited or it&#146;s successor as transfer
agent (&#147;Holders&#146; Agent&#148;), has agreed to act as agent for Holders and has been granted power by the
Holders to act as the agent for each Holder in connection with all matters pertaining to the
enforcement and collection of monies due the Holders under the terms of the Series&nbsp;A Bonds;



<P align="left" style="margin-left:4%; font-size: 11pt"><B>NOW, THEREFORE, </B>Consolidated agrees:


<P align="left" style="font-size: 11pt"><B>Section&nbsp;1. </B><U><B>Guarantee by Consolidated.</B></U> (a)&nbsp;In consideration of the payment on or before
August 1</FONT><FONT style="font-size: 8pt">st </FONT><FONT style="font-size: 11pt">of each year beginning in 2005 by Waterfields to Consolidated of an annual fee
(the &#147;Annual Fee&#148;) in United States currency of one percent (1%) of the aggregate Principal amount
of the Series&nbsp;A Bonds from time to time, Consolidated hereby irrevocably and unconditionally
guarantees the due and punctual payment of the Interest and Principal due and owing by Waterfields
to the Holders on the Series&nbsp;A Bonds upon the occurrence of an Event of Default (as defined in
section 3 hereof) ; provided, however, that Consolidated shall not be liable to make any payment
hereunder until (i)&nbsp;an Event of Default has occurred and (ii)&nbsp;15 Business Days (as used herein, a
&#147;Business Day&#148; shall refer to a day other than a Saturday or a Sunday on which clearing banks are
open for business in Nassau, The Bahamas) following receipt by Consolidated of written notice from
Holders&#146; Agent that an Event of Default has occurred and Waterfields has failed to pay the Interest
or Principal due to the Holders upon such occurrence.
<BR>


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



<P align="left" style="font-size: 11pt">Consolidated hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of obligations set forth herein, any
change or amendment to this Guarantee, the absence of any action to enforce the same, so long as
Consolidated owns shares of Waterfields any waiver or consent by Waterfields with respect of any
provision thereof, the recovery of any judgment against Waterfields or any action to enforce the
same, any failure by Waterfields to pay the fees described in Section&nbsp;2 hereof, or any other
circumstances which may otherwise constitute a legal or equitable discharge or defense of a
guarantor; provided, however, that nothing contained herein shall be construed to be a waiver by
Consolidated of notice to Consolidated with respect to the occurrence of an Event of Default.
Consolidated covenants that this Guarantee will not be discharged except by complete performance
by Waterfields of its obligations attached to the Series&nbsp;A Bonds and the complete performance by
Consolidated of its obligations contained in this Guarantee.</FONT>


<P align="left" style="font-size: 11pt">(b)&nbsp;Consolidated shall be subrogated to all rights of Holders in respect of any amounts paid by
Consolidated pursuant to the provisions of this Guarantee (including the right to elect Directors
of Waterfields); provided, however, that Consolidated shall be entitled to enforce, or to receive
any payments arising out of, or based upon, such right of subrogation only after any Interest and
Principal on the Series&nbsp;A Bonds which are then owed to Holders have been paid by Consolidated.


<P align="left" style="font-size: 11pt">(c)&nbsp;This Guarantee shall continue to be effective or shall be reinstated, as the case may be, if
at any time, or from time to time, any payment of the Interest or Principal on the Series&nbsp;A Bonds
or any other amount owed to Holders hereunder or thereunder is rescinded or must otherwise be
returned by Holders upon the insolvency, bankruptcy or reorganization of Consolidated, Waterfields
or otherwise, all as though such payment had not been made.


<P align="left" style="font-size: 11pt">(d)&nbsp;This Guarantee is a contingent and general unsecured obligation of Consolidated junior to any
secured creditor of Consolidated.


<P align="left" style="margin-right:3%; font-size: 11pt"><B>Section&nbsp;2. </B><U><B>Bank Charge Reimbursement</B>.</U> By executing its Acknowledgement and Agreement
hereto, Waterfields agrees:


<P align="left" style="margin-right:1%; font-size: 11pt">(a)&nbsp;to promptly reimburse Consolidated for any and all fees charged to Consolidated by its&#146;
bankers in relation to this Guarantee; and


<P align="left" style="font-size: 11pt">(b)&nbsp;to pay on or before August 1</FONT><FONT style="font-size: 8pt">st </FONT><FONT style="font-size: 11pt">of each year the Annual Fee to Consolidated.</FONT>


<P align="left" style="font-size: 11pt"><B>Section&nbsp;3. </B><U><B>Event of Default.</B></U> The following events shall each constitute an Event of
Default:


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

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If any Interest due under the Series&nbsp;A Bonds shall remain unpaid for two (2)&nbsp;months
provided that the Holders&#146; Agent shall upon the expiration of such two (2)&nbsp;month period
serve notice in writing upon Waterfields specifying the failure to make payment and in the
event that the payment shall be made within seven (7)&nbsp;days after the date of such notice
an Event of Default shall be deemed not to have occurred.</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: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a levy or enforcement of any distress or execution or other process is made
against the assets of Waterfields and such action is not stayed or dismissed within seven
(7)&nbsp;days after commencement.</TD>
</TR>

</TABLE>


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

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If Waterfields is the subject of a court order for its winding up or dissolution or
is the subject of an effective resolution for its winding up except in relation to a
voluntary winding up for the purposes of amalgamation or reconstruction or a receiver is
appointed of Waterfields and its assets and such appointment is not dismissed or stayed
within Twenty-one (21)&nbsp;days after appointment.</TD>
</TR>

</TABLE>


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

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">d.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a sale or other disposition is effected by Waterfields without the prior written
consent of the Holders&#146; Agent of more than sixty percent of the book value of its Total
assets other than in the normal course of business.</TD>
</TR>

</TABLE>


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

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">e.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If there is a default by Waterfields in the payment of the Principal due on the
Series&nbsp;A Bonds on the maturity date.</TD>
</TR>

</TABLE>


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

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">f.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If a person or entity, or an affiliate thereof, or two or more unaffiliated persons
or entities who agree to act in concert, or any combination thereof, beneficially own
more than 20% of Consolidated&#146;s ordinary shares without the consent of the Board of
Directors of Consolidated.&#148;</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.1. </B><U><B>Notices.</B></U> Any notice, request, demand, consent or other communication provided
or permitted under this Guarantee will be in writing and will be deemed to be sufficiently given
if personally delivered, sent by fax, sent by e-mail or sent by registered mail postage prepaid,
to the party for which it is intended at its address set forth below. Any notice so given will be
deemed to have been received on the date on which it was delivered in person, sent by fax (with
transmission confirmation), or sent electronically, or if sent by registered mail only (which
method of service will not be a valid form of providing notice during a postal strike), five
business days after the sending.

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="22%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="73%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Consolidated:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consolidated Water Co. Ltd.<BR>
Fourth Floor, Windward Three<BR>
Regatta Business Park<BR>
West Bay Road<BR>
PO Box 1114GT<BR>
Grand Cayman, Cayman Islands<BR>
Attention: The President and Chief Executive Officer</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Waterfields:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Waterfields Company Limited<BR>
Shirlaw House<BR>
87 Shirley Street<BR>
P.O. Box N-3247<BR>
Nassau, Bahamas<BR>
Attention: The Secretary</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-size: 12pt">Holders&#146; Agent:</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><FONT style="font-size: 12pt">Fidelity Share Registrars &#038; Transfer Agents Limited</FONT></TD>
</TR>

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




<P align="left" style="margin-left:17%; font-size: 12pt">51 Frederick Street
<BR>
P.O. Box N-4853
<BR>
Nassau, Bahamas
<BR>
Attention: Vice President, Corporate Services


<P align="left" style="font-size: 12pt"><FONT style="font-size: 11pt"><B>Section&nbsp;4.2. </B><U><B>Attorney&#146;s Cost.</B></U> Consolidated agrees to pay all reasonable attorneys&#146;
fees and disbursements and all other reasonable and actual costs and expenses which may be incurred
by Holders or Holders&#146; Agent in the enforcement of this Guarantee provided however that the Holders
or the Holder&#146;s Agent are successful in such enforcement.</FONT>


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.3. </B><U><B>Interpretation.</B></U> The headings of the sections and other subdivisions of this
Guarantee are inserted for convenience only and shall not be deemed to constitute a part hereof.


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.4. </B><U><B>Amendments.</B></U> This Guarantee may be amended only by an instrument in writing
executed by an authorized representative of Consolidated, Waterfields and Holder&#146;s Agent.


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.5. </B><U><B>Entirely.</B></U> This Guarantee embodies the final, entire agreement of Consolidated
and Holders with respect to Consolidated&#146;s guarantee of the obligations of Waterfields in respect
of the Series&nbsp;A Bonds.


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.6 </B><U><B>Currency of Payment.</B></U> Any payment to be made by Consolidated shall be made in
the same currency as designated for payment in the Series&nbsp;A Bonds and such designation of the
currency of payment is of the essence.


<P align="left" style="font-size: 11pt"><B>Section&nbsp;4.7 </B><U><B>Governing Law; Forum Selection.</B></U> This Guarantee shall be construed and enforced
in accordance with, and governed by, the laws of the Commonwealth of The Bahamas. The parties
hereto agree that the sole forum for resolution of any dispute arising under this Agreement shall
be the Commonwealth of The Bahamas and the parties hereby consent and submit to the jurisdiction of
the courts of the Commonwealth of the Bahamas.


<P align="left" style="margin-left:24%; margin-right:3%; font-size: 11pt">IN WITNESS WHEREOF CONSOLIDATED WATER CO.
LTD.
<BR>
has caused its Common Seal to be hereunto
affixed.


<P align="left" style="margin-left:24%; margin-right:1%; font-size: 11pt"><U>_/s/ Frederick W. McTaggart<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U>


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

<P align="left" style="font-size: 11pt">The Common Seal of CONSOLIDATED WATER CO. LTD. was hereunto affixed by Frederick W. McTaggart the<BR>
President of the Company and the said President affixed his signature hereto in the presence of:



<P align="left" style="margin-left:25%; font-size: 11pt"><U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>/s/ Tracey Ebanks<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U>


<P align="center" style="font-size: 11pt"><U><B>ACKNOWLEDGEMENT AND AGREEMENT</B></U>



<P align="left" style="font-size: 11pt">Fidelity Share Registrars &#038; Transfer Agents Limited, as agents for each Holder of Waterfields
Company Limited Series&nbsp;A Bonds hereby acknowledges and consents to the provisions of the foregoing
Guarantee.


<P align="left" style="margin-left:24%; margin-right:3%; font-size: 11pt">IN WITNESS WHEREOF FIDELITY SHARE REGISTRARS &#038;
TRANSFER AGENTS LIMITED has caused its Common
Seal to be hereunto affixed.


<P align="left" style="margin-left:24%; margin-right:3%; font-size: 11pt"><U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>/s/ Michael Anderson<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U>


<P align="left" style="margin-right:1%; font-size: 11pt">The Common Seal of FIDELITY SHARE REGISTRARS AND TRANSFER AGENTS LIMITED was hereunto affixed by
Judy Higgs the Secretary of the Company and the said Michael Anderson </FONT><FONT style="font-size: 12pt">affixed his signature
hereto in the presence of:</FONT>


<P align="left" style="margin-left:24%; margin-right:3%; font-size: 12pt"><FONT style="font-size: 11pt"><U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>/s/ James
Graham<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U></FONT>


<P align="center" style="font-size: 10pt; display: none">4
<!-- PAGEBREAK -->


<P align="center" style="font-size: 11pt"><U><B>ACKNOWLEDGEMENT AND AGREEMENT</B></U>



<P align="left" style="font-size: 11pt">Waterfields Company Limited hereby acknowledges and consents to the provisions of the foregoing
Guarantee, including without limiting the generality of the foregoing, the payment, when due, of
the Annual Fee and reimbursement of Consolidated&#146;s bank charges as described in Section&nbsp;2 hereof,
and agrees to pay to Consolidated on demand, all amounts paid by Consolidated pursuant to this
Guarantee and all costs and expenses incurred by Consolidated in honoring the foregoing Guarantee.


<P align="left" style="margin-left:20%; margin-right:2%; font-size: 11pt">IN WITNESS WHEREOF WATERFIELDS COMPANY LIMITED has
caused its Common Seal to be hereunto affixed.


<P align="left" style="margin-left:20%; margin-right:3%; font-size: 11pt"><U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>/s/ Bryan G. Russell<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U>


<P align="left" style="margin-right:1%; font-size: 11pt">The Common Seal of WATERFIELDS COMPANY LIMITED was hereunto affixed by Mr.&nbsp;Bryan G. Russell a
Director of the Company and the said Director affixed his signature hereto in the presence of:


<P align="left" style="margin-right:4%; font-size: 11pt; text-indent: 21%"><U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>/s/ Yvette Sands <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></U>



<P align="center" style="font-size: 10pt; display: none">5


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