<SEC-DOCUMENT>0001104659-20-081259.txt : 20200706
<SEC-HEADER>0001104659-20-081259.hdr.sgml : 20200706
<ACCEPTANCE-DATETIME>20200706164525
ACCESSION NUMBER:		0001104659-20-081259
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20200629
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20200706
DATE AS OF CHANGE:		20200706

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:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-25248
		FILM NUMBER:		201013975

	BUSINESS ADDRESS:	
		STREET 1:		REGATTA OFFICE PARK, WINDWARD THREE,
		STREET 2:		4TH FLOOR, WEST BAY ROAD, P.O. BOX 1114
		CITY:			GRAND CAYMAN
		STATE:			E9
		ZIP:			KY1-1102
		BUSINESS PHONE:		345-945-4277

	MAIL ADDRESS:	
		STREET 1:		REGATTA OFFICE PARK, WINDWARD THREE,
		STREET 2:		4TH FLOOR, WEST BAY ROAD, P.O. BOX 1114
		CITY:			GRAND CAYMAN
		STATE:			E9
		ZIP:			KY1-1102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONSOLIDATED WATER CO LTD
		DATE OF NAME CHANGE:	19990330

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CAYMAN WATER CO LTD
		DATE OF NAME CHANGE:	19941212
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tm2024078d1_8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;PURSUANT TO SECTION 13 OR 15(d) OF
THE</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SECURITIES EXCHANGE ACT OF 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">June 29, 2020</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Date of earliest event reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CONSOLIDATED WATER CO. LTD.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 32%; text-align: center"><FONT STYLE="font-size: 10pt">Cayman Islands, B.W.I.</FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center"><FONT STYLE="font-size: 10pt">0-25248</FONT></TD>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 32%; text-align: center"><FONT STYLE="font-size: 10pt">98-0619652</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(State or Other Jurisdiction of</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(Commission File No.)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">(IRS Employer Identification No.)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Incorporation)</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Regatta Office Park</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Windward Three, 4<SUP>th</SUP> Floor</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">West Bay Road, P.O. Box 1114</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Grand Cayman, KY1-1102</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Cayman Islands</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(345) 945-4277</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Not Applicable</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former Name or Former Address, if Changed
Since Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">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
(see General Instructions A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px">&nbsp;</TD>
    <TD STYLE="width: 29px"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 44pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Securities registered pursuant to Section 12(b) of the Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 47%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Title of each class</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 15%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Trading Symbol(s)</B></FONT></TD>
    <TD STYLE="width: 1%; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 36%; border-bottom: black 1pt solid; text-align: center"><FONT STYLE="font-size: 10pt"><B>Name of each exchange on which registered</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">Class A common stock, $0.60 par value</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">CWCO</FONT></TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">The Nasdaq Global Select Market</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Emerging growth company <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 0; margin-bottom: 0; width: 100%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; border-bottom: Black 2pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo; Options: Hidden -->&nbsp;<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 72px"><FONT STYLE="font-size: 10pt"><B>Item 1.02</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Termination of a Material Definitive Agreement.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As previously reported, Consolidated Water
Co. Ltd. (the &ldquo;Company&rdquo;), through its wholly-owned Netherlands subsidiary, Consolidated Water Cooperatief, U.A. (&ldquo;CW-Cooperatief&rdquo;),
owns a 99.99% interest in N.S.C. Agua, S.A. de C.V. (&ldquo;NSC&rdquo;), a development stage Mexican company. NSC was formed in
2010 to pursue a project (the &ldquo;Project&rdquo;) that originally encompassed the construction, operation and minority ownership
of a 100 million gallon per day seawater reverse osmosis desalination plant to be located in northern Baja California, Mexico and
accompanying pipelines to deliver water to the Mexican potable water system.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Through a series of transactions completed
between 2012 and 2014, NSC purchased 20.1 hectares of land for approximately $20.6 million on which the proposed Project&rsquo;s
plant was to be constructed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In 2012, NSC entered into a lease (the
 &ldquo;Lease&rdquo;), with an effective term of 20 years from the date of full operation of the Project&rsquo;s desalination plant,
with the Comisi&oacute;n Federal de Electricidad for approximately 5,000 square meters of land on which it planned to construct
the water intake and discharge works for the plant. The Lease may be cancelled by NSC if the Project does not proceed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2014, the State of Baja California
(the &ldquo;State&rdquo;) enacted new legislation to regulate Public-Private Association projects which involve the type of long-term
contract between a public-sector authority and a private party required to complete the Project (the &ldquo;APP Law&rdquo;). Pursuant
to this new legislation, in March 2015, NSC submitted a detailed proposal (the &ldquo;APP Proposal&rdquo;) to the Ministry of Infrastructure
and Urban Development of the State of Baja California (&ldquo;SIDUE&rdquo;) that complied with the requirements of the new legislation.
The new legislation required that such proposal be evaluated by SIDUE and submitted to the Public-Private Association Projects
State Committee for review and authorization.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In response to its APP Proposal, in September
2015, NSC received a letter dated June 30, 2015 from the Director General of the Comisi&oacute;n Estatal del Agua de Baja California
(&ldquo;CEA&rdquo;), the State agency with responsibility for the Project, stating that (i) the Project is in the public interest
with high social benefits and is consistent with the objectives of the State development plan; and (ii) that the Project should
proceed, and the required public tender should be conducted. In November 2015, the State officially commenced the required public
tender for the Project, the scope of which the State defined as a first phase to be operational in 2019 consisting of a 50 million
gallon per day plant and an aqueduct that connects to the Mexican potable water infrastructure and a second phase to be operational
in 2024 consisting of an additional 50 million gallons per day of production capacity. A consortium (the &ldquo;Consortium&rdquo;)
comprised of NSC, NuWater S.A.P.I. de C.V. (&ldquo;NuWater&rdquo;) and Suez Medio Ambiente M&eacute;xico, S.A. de C.V. (&ldquo;Suez
MA&rdquo;), a subsidiary of SUEZ International, S.A.S., submitted its tender for the Project in April 2016 and in June 2016, the
State designated the Consortium as the winner of the tender process for the Project.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In August 2016, NSC and NuWater incorporated
Newco under the name Aguas de Rosarito S.A.P.I. de C.V. (&ldquo;AdR&rdquo;) to pursue completion of the Project and executed a
shareholders agreement for AdR agreeing among other things that (i) AdR would purchase the land and other Project assets from NSC
on the date that the Project begins commercial operation and (ii) AdR would enter into a Management and Technical Services Agreement
with NSC effective on the first day that the Project begins commercial operation. NSC initially owned 99.6% of the equity of AdR.
In February 2018, NSC acquired the remaining 0.4% ownership in AdR from NuWater.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 22, 2016, the Public
Private Partnership Agreement for public private partnership number 002/2015, bid number SIDUE-CEA-APP-2015-002 (&ldquo;APP
Contract&rdquo;), was executed between AdR,  CEA, the Government of Baja California as represented by the Secretary of
Planning and Finance and the Public Utilities Commission of Tijuana (&ldquo;CESPT&rdquo;). The APP Contract required AdR to
design, construct, finance and operate a seawater reverse osmosis desalination plant (and accompanying aqueduct) with a
capacity of up to 100 million gallons per day in two phases: the first with a capacity of 50 million gallons per day and an
aqueduct to the Mexican potable water system in Tijuana, Baja California and the second phase with a capacity of 50 million
gallons per day. The first phase was to be operational within 36 months of commencing construction and the second phase was
to be operational by July 2024. The APP Contract further required AdR to operate and maintain the plant and aqueduct for a
period of 37 years starting from the commencement of operation of the first phase. At the end of the operating period,
ownership of the plant and aqueduct would have been transferred to CEA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In December 2016, the Congress of the State
of Baja California, Mexico (the &ldquo;Congress&rdquo;) passed Decreto #57 which, among other things, ratified and authorized the
payment obligations of the corresponding public entities under the APP Contract and authorized the corresponding public entities
to obtain a credit facility to guarantee their payment obligations. During 2017, following consultations between representatives
of the State of Baja California and the Ministry of Finance of the Federal Government of Mexico, it was determined that certain
amendments to Decreto #57 were required to comply with recent changes to the Federal Financial Discipline Law for Federative Entities
and Municipalities. In addition, an amendment of Decreto #57 was required to authorize the inclusion of revenue from the CESPT
in the primary payment trust for the Project. These amendments were included in Decreto #168, which was approved by the Congress
in December 2017. The authorization of the payment obligations of the public entities under the APP Contract and for the execution
of the credit agreement to guarantee such payment obligations given in Decreto #57, as amended by Decreto #168, expired on December
31, 2018. During the congressional session held at the end of March 2019, the Congress passed Decreto #335, which renewed the authorizations
for the various payment trusts, guaranties and bank credit lines required to be established for the Project by the State entities.
Decreto #335 expired December 31, 2019. During the congressional session held at the end of December 2019, the Congress passed
Decreto #37, which renewed the authorizations for the various payment trusts, guaranties and bank credit lines required to be established
for the Project by the State entities. Decreto #37 expired June 30, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Both the exchange rate for the Mexican
peso relative to the dollar and general macroeconomic conditions in Mexico varied since the execution of the APP Contract.
These changes  adversely impacted the estimated construction, operating and financing costs for the Project. The APP Contract
and the APP Law allow for the parties to negotiate (but do not guarantee) modifications to the consideration (i.e. water tariff)
under the APP Contract in the event of such significant macroeconomic condition changes. In February 2017, AdR submitted proposals
to  CEA requesting the definition of the mechanism required by the APP Contract to update the consideration under the APP Contract
for changes in foreign exchange rates, lending rates and certain laws which have impacted the Project. On June 1, 2018, AdR and
 CEA executed an amendment to the APP Contract which, among other things, increased the scope of Phase 1 of the Project by including
the aqueduct originally designated for Phase 2, and addressed AdR&rsquo;s concerns regarding the impact on the Project for changes
in the exchange rate for the peso relative to the dollar and changes in interest rates that have occurred subsequent to the submission
of the Consortium&rsquo;s bid for the Project. As a result of this amendment to the APP Contract, the final cost of Phase 1 and
the related consideration to be charged by AdR under the APP Contract was to be determined based upon the bid submitted by the
Consortium, the changes set forth in the amendment to the APP Contract and the economic conditions (e.g. interest rates and currency
exchange rates) in effect on the financial closing date for Phase 1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2018, AdR executed a subscription
agreement (the &ldquo;Subscription Agreement&rdquo;) for the equity funding required for the Project. The Subscription Agreement
calls for NSC to retain a minimum of 25% of the equity in AdR. One or more affiliates of Greenfield SPV VII, S.A.P.I. de C.V. (&ldquo;Greenfield&rdquo;),
a Mexico company managed by an affiliate of a leading U.S. asset manager, will acquire a minimum of 55% of the equity of AdR. The
Subscription Agreement also provides Suez MA with the option to purchase 20% of the equity of AdR. If Suez MA does not exercise
this option, NSC will retain 35% of the equity of AdR and Greenfield will acquire 65% of the equity of AdR. The Subscription Agreement
will become effective when the additional conditions related to the Project are met, including but not limited to those conditions
discussed previously. The aggregate funding to be provided by AdR&rsquo;s shareholders for the Project, in the form of equity and
subordinated shareholder loans, is presently estimated at approximately 20% of the total cost of Phase 1 of the Project. This Subscription
Agreement was scheduled to expire on September 30, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">NSC expected to generate a portion of its
funding for AdR through the sale to AdR of the land it had purchased for the Project.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On June 29, 2020, AdR received a letter
(the &ldquo;Letter&rdquo;) from the Director General of CEA terminating the APP Contract. The reasoning provided in the Letter
for the decision to terminate the APP Contract is that the Project (a) is not financially feasible due to increases in the construction,
operating and financing costs for the Project in addition to negative changes in economic conditions (e.g. interest rates and currency
exchange rates); (b) is not sustainable for CEA and CESPT given its financial unfeasibility; (c) puts pressure to increase the
rates charged to customers; (d) would force the Government of the State to cover a deficit of CEA and CESPT, thus preventing the
State Government from spending on investment programs or social expenditures; and (e) negatively affects the general interest.
The Letter requests that AdR provide an inventory of the assets that currently comprise the &ldquo;Project Works&rdquo; (as defined
in the APP Contract) for the purpose of acknowledging and paying the non-recoverable expenses made by AdR in connection with the
Project, with such reimbursement to be calculated in accordance with the terms of the APP Contract.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company, AdR and NSC plan to vigorously
pursue all legal remedies and courses of action available under the APP Contract and applicable law (including, if necessary, international
treaties and agreements) with respect to any rights they may have upon termination of the APP Contract, including the reimbursement
of expenses and investments. However, the Company cannot provide any assurances that it will be able to obtain reimbursement for
any expenses or investments made with respect to the Project.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a consequence of the termination of
the APP Contract, the Company, AdR and NSC expect to and shall terminate the various agreements ancillary to the Project.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Also as a consequence of the termination
of the APP Contract, the land NSC purchased and the rights of way deposits it has made may have declined in value due to the loss
of their strategic importance derived from their incorporation in the Project. Due to the uncertainty associated with the amount
and timing of any reimbursement from the State Government, the Company may be required to record impairment losses to reduce the
carrying values of the land and/or the rights of way (which amounted to approximately $21.2 million and $3.0 million, respectively,
at March 31, 2020) to their current fair values. Such impairment losses could have a material adverse impact on the Company&rsquo;s
consolidated financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The summary of the Letter does not purport
to be complete and is qualified in its entirety by reference to the full text of the Letter that is filed herewith as Exhibit 10.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Note about forward-looking statements</I></B><I>.
Certain statements in this report, other than purely historical information, including estimates, projections, statements relating
to the Company&rsquo;s business plans, objectives and expected operating results, and the assumptions upon which those statements
are based, are &ldquo;forward-looking statements&rdquo; within the meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements
generally are identified by the words &ldquo;believe,&rdquo; &ldquo;project,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo;
 &ldquo;estimate,&rdquo; &ldquo;intend,&rdquo; &ldquo;strategy,&rdquo; &ldquo;future,&rdquo; &ldquo;opportunity,&rdquo; &ldquo;plan,&rdquo;
 &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;will,&rdquo; &ldquo;would,&rdquo; &ldquo;will be,&rdquo; &ldquo;will continue,&rdquo;
 &ldquo;will likely result,&rdquo; and similar expressions. Forward-looking statements are based on current expectations and assumptions
that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements.
Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company&rsquo;s
products and services in the marketplace, the outcome of the Company and NSC&rsquo;s attempt to pursue legal remedies and courses
of action available under the APP Contract and applicable law with respect to NSC&rsquo;s rights upon termination of the APP Contract,
the Company&rsquo;s ability to manage growth and other risks detailed in the Company&rsquo;s periodic report filings with the Securities
and Exchange Commission. Except as otherwise required by law, the Company undertakes no obligation to update or revise publicly
any forward-looking statements, whether as a result of new information, future events or otherwise.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 96px; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Item 9.01.</B></FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Financial Statements and Exhibits.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 0px"></TD>
    <TD STYLE="width: 24px; text-align: justify"><FONT STYLE="font-size: 10pt">(d)</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Exhibits.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit&nbsp;No.</FONT></TD>
    <TD STYLE="width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 89%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Title</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><A HREF="tm2024078d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.1</FONT></A></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="tm2024078d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Letter dated June 29, 2020 from the Director General of the Comisi&oacute;n Estatal del Agua de Baja California to Aguas de Rosarito, S.A.P.I. de C.V.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="3"><FONT STYLE="font-size: 10pt">CONSOLIDATED WATER CO. LTD.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 55%">&nbsp;</TD>
    <TD STYLE="width: 5%"><FONT STYLE="font-size: 10pt">By:&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 30%; border-bottom: black 1pt solid"><FONT STYLE="font-size: 10pt">/s/ David W. Sasnett</FONT></TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Name:&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">David W. Sasnett</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Executive Vice President &amp; Chief Financial Officer</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date: July 6, 2020</P>


<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>EXHIBIT INDEX</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 81.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 81.4pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Exhibit&nbsp;No.</FONT></TD>
    <TD STYLE="width: 1%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 89%; border-bottom: black 1pt solid; text-align: justify"><FONT STYLE="font-size: 10pt">Title</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><A HREF="tm2024078d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">10.1</FONT></A></TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="tm2024078d1_ex10-1.htm" STYLE="-sec-extract: exhibit"><FONT STYLE="font-size: 10pt">Letter dated June 29, 2020 from the Director General of the Comisi&oacute;n Estatal del Agua de Baja California to Aguas de Rosarito, S.A.P.I. de C.V.</FONT></A></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 81.4pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 81.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<!-- Field: Page; Sequence: 7; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>tm2024078d1_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="text-align: right; margin: 0"><B>EXHIBIT 10.1</B></P>

<P STYLE="margin: 0; text-align: right">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY:
    </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION:
    </B>GENERAL DIRECTION</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL
    COMMUNICATION:</B> DG/122/2020</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0in; text-align: right">Mexicali, Baja California, on June 29th,
2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 75%">&nbsp;</TD>
    <TD STYLE="text-align: center; width: 25%; font: 10pt Times New Roman, Times, Serif">[Seal that says STATE WATER<BR>
 COMMISSION OF BAJA<BR>
 CALIFORNIA/ DISPATCHED/<BR>
 JUNE 29, 2020]</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>AGUAS DE ROSARITO, S.A.P.I. de C.V.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Boulevard Rodolfo S&aacute;nchez Taboada number 10488, suite
801,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Zona R&iacute;o, Tijuana Baja California, Mexico Postal Code
22320.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">and/or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Paseo de los H&eacute;roes number 10289-302, Col. Zona Urbana
Rio Tijuana</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tijuana Baja California, Mexico Postal Code 22010.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We make reference to the Public-Private
Partnership Agreement Number C-SIDUE-CEA-APP-2015-002, entered into on August 22<SUP>nd</SUP>, 2016, by and between the STATE WATER
COMMISSION OF BAJA CALIFORNIA (hereinafter, the &ldquo;<B><U>CEA</U></B>&rdquo;) y AGUAS DE ROSARITO S.A.P.I. de C.V. (hereinafter,
the &ldquo;<B><U>DEVELOPER</U></B>&rdquo;); as well as STATE COMMISSION OF PUBLIC UTILITIES OF TIJUANA (hereinafter, &ldquo;<B><U>CESPT</U></B>&rdquo;)
in its capacity as joint obligor, and by, at that time, the Ministry of Planning and Finance as guarantor in the Current Account
Credit Facility. Said agreement was subject matter of Public Bid number SIDUE-CEA-APP-2015-002, was notarized before the public
faith of Mr. Rodolfo Gonz&aacute;lez Quiroz, Notary Public number 13 of the City of Mexicali, Baja California, as evidenced in
notarial deed number 78,242, volume 1,890, dated August 26<SUP>th</SUP>, 2016, which was amended through amendment agreement dated
June 1<SUP>st</SUP>, 2018, (hereinafter, the amendment agreement dated June 1<SUP>st</SUP>, 2018 will be referred as &ldquo;<B>Amendment
Agreement</B>&rdquo;; and jointly the Amendment Agreement and the agreement C-SIDUE-CEA-APP-2015-002 will be referred to as the
 &ldquo;<B><U>APP Agreement</U></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The APP Agreement, as established in the
Amendment Agreement, is for the &ldquo;Construction, Financing and Operation of a Desalination Plant in the Municipality of Playas
de Rosarito&rdquo; consisting of &ldquo;A Desalination Plant with a capacity of up to 4.4 m<SUP>3</SUP>/second in two stages: the
first with a capacity of 2.2 m<SUP>3</SUP>/second and an aqueduct to the delivery point in Tank 3 up to the El Florido Water Treatment
Plant both in the Municipality of Tijuana, the expansion to 20,000 m<SUP>3</SUP> of the mentioned Tank 3, and the second with a
capacity of 2.2 m<SUP>3</SUP>/second, includes the Design, Preparation of the Executive Project, Construction, Electromechanical
Equipment and functioning Tests of the Desalination Plant and the Aqueducts; as well as, their Operation, Conservation, Maintenance
including its conduction and delivery of up to 4,400 liters per second, the treatment and the disposition of the rejection water
during an operation period of 37 years&rdquo; (hereinafter the &ldquo;<B><U>Project</U></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The terms written with an initial capital
letter, the meaning of which is not expressly defined herein, shall have the meaning ascribed to them in the APP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In this regard, the fifth paragraph of
Clause First of the APP Agreement provides that the guaranteed annual volume of water at 95% efficiency for both stages of the
Project shall be 131.2 million cubic meters, equivalent to 4,162 liters per second of Potable Water; the first stage being 65.6
million cubic meters, equivalent to 2,081 liters per second, and for the second stage 65.6 million cubic meters, equivalent to
2,081 liters per second at the Measurement Point, regardless of its conduction to the Delivery Point, as well as the disposition
of the Rejection Water<FONT STYLE="font-size: 10pt"><SUP>1</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The public-private partnership projects,
in accordance with the provisions of article 2, paragraph two of the Public-Private Partnership Law for the State of Baja California
(the &ldquo;<B><U>APP Law</U></B>&rdquo;)<FONT STYLE="font-size: 10pt"><B><U><SUP>2</SUP></U></B></FONT>, must be fully justified,
specify the social benefit that is sought to be obtained, and evidence the need or convenience before other forms of financing,
principles that have ceased being in effect in the case of the Project, because, in the event of continuing with the fulfillment
of the agreed obligations, a damage would be caused to the CEA, to the CESPT, to the State of Baja California and to the users
of the service by generating strong pressure to increase the current rates, as will be evidenced below, with the provisions of
the first paragraph of Article 123 of the Regulations to the APP Law<FONT STYLE="font-size: 10pt"><SUP>3</SUP></FONT> and Clause
Thirtieth, section V, number 1<FONT STYLE="font-size: 10pt"><SUP>4</SUP></FONT> of the APP Agreement being applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Legal representation of Mr. Luis
Granados Pacheco, General Director of the State Water Commission</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned, Mr. Luis Granados Pacheco
is the General Director of the State Water Commission of Baja California, pursuant to the terms of the appointment issued in my
favor on November 1<SUP>st</SUP>, 2019, by the Constitutional Governor of the State of Baja California, Mr. Jaime Bonilla Valdez
and ratified before the H. Board of Governors of the CEA, which is supported by the notarization of the corresponding minutes which
corresponds to volume 5,103, with number 183,694, dated November 21<SUP>st</SUP>, 2020, notarized before the faith of Notary Public
number Five of the city of Mexicali Baja California, Mr. Luis Alfonso Vidales Moreno, which was registered in the Public Registry
of Property and Commerce in the City of Mexicali Baja California, by means of entry 5883674 dated November 22<SUP>nd</SUP>, 2019
of the civil section, who exercises the legal representation of said organization in accordance with articles 11 and 12 of the
Decree by which the State Water Commission of the State of Baja California is created, published in the Official Gazette of the
State of Baja California on March 3<SUP>rd</SUP>, 1999 (hereinafter the &ldquo;<B>Decree for the Creation of the CEA</B>&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>1</SUP> Clause First, paragraph
fifth of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the
APP contained in Clause Fifth of the Amendment Agreement to the Public-Private Partnership Agreement dated June 1<SUP>st</SUP>,
2018, named Amendment to the APP Clauses, pp 13-14.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>2</SUP> Public-Private Partnership
Law for the State of Baja California published in the Official Gazette of the State on August 22<SUP>nd</SUP>, 2014, article 2,
second paragraph. [&hellip;]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In the terms provided for in this Law,
the public-private partnership projects shall be fully justified, specify the social benefit that is sought and evidence the need
or convenience before other forms of financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>3</SUP> Regulations for the Public-Private
Partnership Law for the State of Baja California published in the Official Gazette of the State on August 22<SUP>nd</SUP>, 2014,
article 123, first paragraph. The Contracting Entity must agree in the Public-Private Partnership Agreement that it may be early
terminated when general interest reasons occur or, when for justified cause, the need for the requirement of the originally agreed
goods or services extinguishes, and it is evidenced that, continuing with fulfillment of the agreed obligation, would cause a
damage or prejudice to the State.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[&hellip;]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>4</SUP> Clause Thirtieth, Section
V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination
of the APP, Early Termination for reasons of general interest, pp 71-72.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Legal representation of Chemist Rigoberto
Labor&iacute;n Valdez, General Director of the State Commission of Public Utilities of Tijuana</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Chemist Rigoberto Labor&iacute;n Valdez,
has the authority to contract, obligate and agree on behalf of the CESPT in accordance with his functions, who evidences his capacity
by means of an appointment dated November first, two thousand nineteen, granted by Mr. Jaime Bonilla Valdez, Constitutional Governor
of the State of Baja California, which was granted in accordance with the provisions of articles 49 fraction X of the Political
Constitution of the Free and Sovereign State of Baja California, 2 and 12 of the Organic Law of Public Administration of the State
of Baja California, 21 of the Law of Quasigovernmental Entities of Baja California and 11 of the Law of the State Commissions of
Public Utilities of the State of Baja California and through a power of attorney granted by its Board of Directors as evidenced
in Public Deed Number 182,428, Volume 5,896, dated November 13<SUP>th</SUP>, 2019, which is duly notarized before Notary Public
Number 3 of this city of Tijuana, Mr. Xavier Ib&aacute;&ntilde;ez Veramendi, registered in the Public Registry of Property and
Commerce under Entry 6182154 of the Civil Section, with registration date December 4<SUP>th</SUP>, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Opinion of the CEA as a Contracting
Entity</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Pursuant to the terms of article 123 of
the Regulations to the APP Law, on June 25<SUP>th</SUP>, 2020, the CEA issued the opinion supporting the early termination of the
APP Agreement, which specifies the reasons and justified causes creating it and supporting and motivating such circumstance are
precised, which are communicated to the Developer herein, for the relevant legal, regulatory and contractual purposes (hereinafter
the &ldquo;<B>CEA Opinion</B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Resolution of the Board of Directors
of the State Water Commission of Baja California.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">At the Fourth Extraordinary Session of
the Board of Directors of the CEA held on June 26<SUP>th</SUP>, 2020, the Board of Directors of the CEA resolved to authorize the
early termination of the APP Agreement for the reasons set forth in the CEA Opinion and authorized the undersigned, in his capacity
as as CEA's General Manager, to proceed lawfully.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>GROUNDS FOR THE EARLY TERMINATION
OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Articles 1, 2, 5, 10, 11 and 12 of the
Decree for the Creation of CEA, 1 of the Decree amending the Executive Decree creating the Decentralized Organism known as State
Water Commission, 111 and 112 of the APP Law, 123 of the Regulations to the APP Law, and other related provisions, as well as the
provisions of Clauses First, Third, Fourth, Fifth, Thirtieth Section V, number 1, Thirty Third and Thirty Eighth of the APP Agreement
and resolution number SE/008/26-06-20 passed during the Fourth Extraordinary Session of the Board of Directors of the CEA are the
basis for the early termination of the APP Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>REASON FOR THE EARLY TERMINATION
OF THE APP AGREEMENT FOR CAUSES OF GENERAL INTEREST.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Causes of general interest for the
termination of the APP Agreement.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In accordance with what is indicated in
Clause Thirtieth, section V, number 1, item a), below are the causes of general interest that justifiably evidence that if the
obligations of the APP Agreement continue to be fulfilled, a damage would be caused to the CEA, to the CESPT, to the State of Baja
California and to the users of the service, by generating strong pressure to increase the current rates, all the foregoing to the
detriment of the general interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a)</TD><TD STYLE="text-align: justify"><B>Description.</B> As evidenced below, the current conditions of the Project have been substantially
modified with respect to the original conditions arising from the Public Bid number SIDUE-CEA-APP-2015-002<FONT STYLE="font-size: 10pt"><SUP>5</SUP></FONT>,
which trigger the provisions for terminating the APP Agreement for reasons of general interest in accordance with the legal, regulatory
and contractual provisions that have been indicated and the reasoning described herein; as it does not constitute a sustainable
solution given its financial unfeasibility, as well as the damage that would be caused by continuing fulfillment of the obligations
agreed in the APP Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b)</TD><TD STYLE="text-align: justify"><B>Justification.</B> Under the APP Agreement, the Developer must carry out the necessary actions
for the development of the Project consisting of the planning, definition and execution of all the actions that it considers necessary
to supply for 37 years, the operation of a flow of up to 4,400 LPS of desalinated and potable water in two stages, each one of
2,200 LPS, to partially cover the demand in the Municipalities of Tijuana and Playas de Rosarito in the State of Baja California.
Originally, it was forseen that the second phase, corresponding to 2,200 LPS, would begin operations in the year 2024<FONT STYLE="font-size: 10pt"><SUP>6</SUP></FONT>.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>5</SUP> Exhibits 1, 4 and 5 of the
Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Call, Proposition and Scope of the
works of the Reference Terms, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>6</SUP> Cfr. Note 9.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Current Account Credit Facility</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The APP Agreement contains an obligation
of CEA to carry out the contracting of a Current Account Credit line, which must comply with the following characteristics<FONT STYLE="font-size: 10pt"><SUP>7</SUP></FONT>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">Be irrevocable and contingent;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">To guarantee to the Lenders of the Developer the fulfillment of the payment obligations in charge
of the CEA;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Have an amount equivalent to 3 months of the payment of the Consideration including the Value Added
Tax.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">Have as a source of payment the necessary and sufficient percentage of the income from the tax
on the remunerations for personal work plus the income from water rights collected by the CESPT for the rendering of its public
utility service.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">e.</TD><TD STYLE="text-align: justify">Be in force as long as there are payment obligations in charge of the CEA under the APP Agreement
(in the order of 37 years);</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This current account credit line implied
a guarantee for an amount of $295.78 million pesos for phase 1 which was increased in $223.8 million pesos for phase 2, giving
a total of $519.6 million pesos for both phases<FONT STYLE="font-size: 10pt"><SUP>8</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Original Consideration</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The APP Agreement was executed with a bid
amount equal to $98.6 million pesos of monthly consideration for the first phase and $74.6 million pesos for the second (at February
2016 prices). That is, the consideration for the two phases amounted to $173.2 million pesos including value added tax<FONT STYLE="font-size: 10pt"><SUP>9</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">To place the above amounts into context,
the monthly management income of CESPT (Audited in 2019) was of $328.8 million pesos and the operative result (management income
minus operating expense) was $49.1 million pesos per month<FONT STYLE="font-size: 10pt"><SUP>10</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">That is, the amount of the Consideration
established in the APP Agreement<FONT STYLE="font-size: 10pt"><SUP>11</SUP></FONT> only for <U>phase 1</U> of $98.6 million pesos
represents 30% of the income of the CESPT for 2019 and 200% of the operating result (income minus management expenses), therefore
the payment of the Consideration would represent the creation of an <B>annual deficit in the order of $593.17</B> million pesos
to <B>CESPT</B>, this is due to obligation of the CESPT under the APP Agreement, of executing a water purchase and sale agreement
in order for the <B>CEA</B> to have sufficient resources to pay the Consideration<FONT STYLE="font-size: 10pt"><SUP>12</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>7</SUP> Clause Twenty Ninth of the
Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration, pp.
68-70.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>8</SUP> Item 6 of clause Twenty Ninth
of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Resources of the Consideration,
pp. 69.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>9</SUP> Exhibit 4 to the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Proposition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>10</SUP> Opinion on the Financial
Statements of the State Commission of Public Utilities of Tijuana for the period comprised between January 1<SUP>st</SUP> and
December 31<SUP>st</SUP>, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>11</SUP> Clause Eleventh of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Consideration for the Services, pp. 40-46.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>12</SUP> Opinion of the CEA.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The deficit in the CESPT mentioned in the
previous paragraph impacts the CEA, the State Government and the users in the following manner:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">The deficit of CESPT would cause it to be unable to make full payment under the Water Purchase
and Sale Agreement entered into with the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration
under this agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the
Current Account Credit that the CEA would contract with the guarantee of the Government of the State of Baja California, represented
at the time by the Ministry of Planning and Finance (SPF), would be triggered</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Given that the Current Account Credit would affect the income and rights for the tax on remuneration
for personal work in a necessary and sufficient percentage, the Government of the State of Baja California would have its income
affected in the amount of resources necessary to cover the deficit of the Consideration, thus reducing the resources available
for its investment or social spending programs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">Given that the deficit would be maintained over time, this would generate strong pressure to increase
user rates seeking to reduce said deficit.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Amendment Agreement</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Amendment Agreement amended the Total
Cost of the System and consequently the Total Investment Amount and changed the original risk matrix of the Project by incorporating
an acknowledgement of the variations in the exchange rate and interest rates, in addition to the updating mechanism for inflation
originally foreseen, in accordance with the following<FONT STYLE="font-size: 10pt"><SUP>13</SUP></FONT>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">It increased the total cost of the System for phase 1 from $5,254.48 million pesos to $6,099.80
million pesos</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">It reduced the total cost of the System for phase 2 from $3,271.26 million pesos to $2,624.58 million
pesos</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.4pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>13</SUP> Clauses Fourth and Fifth
of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1<SUP>st</SUP>, 2018, named Amendment to the
APP Clauses; Clause Forty Sixth named total Cost of the System pp. 25-26.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">It modified the amount of the Consideration in charge of the CEA and in favor of the Developer.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">It included a clause entitled: &ldquo;Adjustment mechanism to recognize changes in financial conditions
during the investment period&rdquo;, which allows for an increase in the payment arising from the increase in the exchange rate
in United States Dollars, in Euros and the increase in the interest rate.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Economic Impacts of the Amendment
Agreement</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The monthly consideration of $98.6 million
pesos for the first phase was increased to $107.83 million pesos per month without considering the effects of exchange rate and
interest rate adjustments<FONT STYLE="font-size: 10pt"><SUP>14</SUP></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Likewise, to place into context the amounts
indicated in the previous paragraph, this Consideration of $107.83 million pesos represents 30% of the income of CESPT in 2019
and 219% of its operating result (income minus management expenses), which would imply generating an <B>annual deficit for CESPT
in the order of $704 million pesos.<FONT STYLE="font-size: 10pt"><SUP>15</SUP></FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When calculating the effect of the &ldquo;Adjustment
mechanism to recognize changes in financial conditions during the investment period&rdquo;<FONT STYLE="font-size: 10pt"><SUP>16
</SUP></FONT>incorporated into the APP Agreement through the Amendment Agreement, the Consideration for phase 1 including value
added tax is estimated could increase from $107.83 million pesos to $125.50 million pesos per month.<FONT STYLE="font-size: 10pt"><SUP>17</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Again, to place in context the amounts
indicated above, the Consideration for Phase 1 for $125.50 million pesos represents 44% of the income of CESPT in 2019 and 296%
of the operating result (income minus management expenses) which could generate an <B>annual deficit for CESPT of $1,157 million
pesos</B> with the same affectation on the State of Baja California and the corresponding pressure for an increase in user rates.<FONT STYLE="font-size: 10pt"><SUP>18</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Options to cover the Deficit generated
between the income and payment obligations in charge of the CEA and the CESPT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amount of the Consideration to be paid
by the CEA and the CESPT under the APP Agreement were increased due to the Amendment Agreement, which increased the amount of the
investment and incorporated the change mechanism per increase of the exchange rate and interest rate, which means that the amount
of such Consideration, from their origin, could generate a budget deficit for the CESPT that began at $593 million pesos annually,
but when incorporating the effects arising from the Amendment Agreement, could reach an amount of $1,157 million pesos annually,
which should be covered by the contingent credit line as follows:<FONT STYLE="font-size: 10pt"><SUP>19</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>14</SUP> Clause Fifth of the Amendment
Agreement to the Public-Private Partnership Agreement, dated June 1<SUP>st</SUP>, 2018, named Amendment to the APP Clauses; Clause
Eleventh.- Consideration for the Services. Sets an amount for total monthly consideration of $92,968,663, which amount, when adding
the VAT, results in $107,843,649, p. 16.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP> Opinion of the CEA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>16</SUP> Clause Fifth of the Amendment
Agreement to the Public-Private Partnership Agreement, dated June 1<SUP>st</SUP>, 2018, named Amendment to the APP Clauses; Clause
Fourteenth named Adjustment Mechanisms to recognize changes in the financial conditions during the investment period pp. 17-19.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP> Opinion of the CEA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>18</SUP> Ibidem.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>19</SUP> Ibidem&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The deficit of the CESPT mentioned in the
previous paragraph impacts the CEA, the State Government and the users as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">The deficit of the CESPT would cause it to be unable to make full payment under the Water Purchase
and Sale Agreement entered into with the CEA, causing the CEA in turn to not have sufficient resources for payment of the Consideration
under this agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">Upon the lack of sufficient resources for the payment of the Consideration, the exercise of the
Current Account Credit that the CEA would contract with the guarantee of the Government of the State of Baja California, represented
at the time by the Ministry of Planning and Finance (SPF), would be triggered.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Given that the Current-Account Credit would affect the income and rights for the tax on remuneration
for personal work in a necessary and sufficient percentage, the Government of the State of Baja California would have its income
affected in the amount of resources necessary to cover the deficit of the Counterpart, thus reducing the resources available for
its investment or social spending programs.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">Given that the deficit would be maintained over time, this would generate strong pressure to increase
user rates seeking to reduce said deficit.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">This level of deficit would have to be
covered through a combination of the following three sources:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">Reducing or eliminating future investments of the CESPT to the detriment of its service</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">Use budget resources of the State Government of Baja California affecting the social or investment
projects.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Increase rates substantially affecting the economy of the population.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Conclusion</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Based on the above founded and motivated,
in case of continuing with the obligations foreseen in the APP Agreement, a negative impact on the finances of the CEA, of the
CESPT and in the finances of the State of Baja California and a strong pressure to carry out an increase in the current rates would
be created, thereby affecting the general interest. In other words, the Project contained in the APP Agreement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">Is not sustainable.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">Is not financially viable, nor sustainable for the CEA and the CESPT.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Puts pressure on the increase in the amount of the rates to be paid by the users, affecting their
economy.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">Negatively affects the general interest.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Notice of Early Termination of the
APP Agreement for General Interest Reasons.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In this context and given that it is the
obligation of CEA to plan and coordinate the pertinent actions so that the population has sufficient hydraulic infrastructure
<U>through sustainable solutions</U>, as established in article 1 of the Decree amending the Executive Decree creating the Decentralized
Organism known as the State Water Commission, through which the State Water Service Commission is administratively and operationally
incorporated into the State Water Commission<FONT STYLE="font-size: 10pt"><SUP>20</SUP></FONT> and which must promote, at all
times, its healthy development, a task that is made difficult by the financial unfeasibility of the APP Agreement, due to the
complex situation described in this document; Therefore, pursuant to the terms of Articles 111 and 112 of the APP Law, 123<FONT STYLE="font-size: 10pt"><SUP>21
</SUP></FONT>of the Regulations to the APP Law, as well as the provisions of Clauses First<FONT STYLE="font-size: 10pt"><SUP>22</SUP></FONT>,
Third<FONT STYLE="font-size: 10pt"><SUP>23</SUP></FONT>, Fourth<FONT STYLE="font-size: 10pt"><SUP>24</SUP></FONT>, Fifth<FONT STYLE="font-size: 10pt"><SUP>25</SUP></FONT>,
Thirtieth section V, number 1<FONT STYLE="font-size: 10pt"><SUP>26</SUP></FONT>, Thirty Third<FONT STYLE="font-size: 10pt"><SUP>27
</SUP></FONT>and Thirty Eighth<FONT STYLE="font-size: 10pt"><SUP>28</SUP></FONT> of the APP Agreement, the company AGUAS DE ROSARITO
S.A.P.I de C.V. is hereby <B><U>notified</U></B>, in its capacity as Developer under the APP Agreement, of the early termination
of the APP Agreement for causes of general interest as of this date, and therefore said agreement ceases to have effects immediately.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>20</SUP> Decree amending the Executive
Decree creating the Decentralized Organism known as the State Water Commission by means of which the State Water Service Commission
is administratively and Operationally integrated to the State Water Commission published in the Official Gazette of the State
on January 27<SUP>th</SUP>, 2006, article First. Articles 1, 2, 4 and 12 of the Decree creating the State Water Commission of
Baja California are amended to readas follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Article 1.- The decentralized public body
with its own legal personality and assets is created, called the State Water Commission of Baja California, which purpose will
be to plan and coordinate the pertinent actions for the population to have sufficient hydraulic infrastructure, as well as to appoint,
organize, and execute the water in block policy in the state, thus satisfying the demand for water services through sustainable
solutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>21</SUP> Cfr. Note 3.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>22</SUP> Clause First of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Subject Matter of the Agreement, contained in Clause
Fifth of the Amendment Agreement to the Public-Private Partnership Agreement, dated June 1<SUP>st</SUP>, 2018, pp. 13-15.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>23</SUP> Clause Third of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Description of the Works of the Agreement, pp. 28-29.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>24</SUP> Clause Fourth of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Times for the Execution of the Agreement, pp. 29-33.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>25</SUP> Clause Fifth of the Public-Private
Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Realization of the Project and Financing of the Agreement,
pp. 33-35.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>26</SUP> Clause Thirtieth, Section
V, Number 1 of the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination
of the APP, Early Termination for reasons of general interest, pp. 71-72.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>27</SUP> Clause Thirty Third of
the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Early Termination for reasons of
general interest or Justified Causes, pp. 81.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>28</SUP> Clause Thirty Eighth of
the Public-Private Partnership Agreement identified with number C-SIDUE-CEA-APP-2015-002 named Notices, pp. 86-87.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><U>Requirement to the Developer:</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In terms of the provisions of Clause Thirtieth,
section V, number 1, items a), b) and c)<FONT STYLE="font-size: 10pt"><SUP>29</SUP></FONT> respectively, the Developer is requested
to, within the terms mentioned below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">a.</TD><TD STYLE="text-align: justify">Begin the inventory of the assets that are currently comprise the Works of the Project referred
to in paragraphs a) and b) of number 1 of Section V of Clause Thirtieth of the APP Agreement and proceed to its delivery to CEA
within 90 (ninety) business days as from the date of delivery of this notice;</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">b.</TD><TD STYLE="text-align: justify">For purposes of that mentioned in the immediately preceding paragraph, Mr. Juan Carlos Sandoval
has been appointed as representative of CEA.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">c.</TD><TD STYLE="text-align: justify">Submit to CEA the corresponding evidence, with the purpose of acknowledging and paying the non-recoverable
expenses and those pending amortization made by the Developer in the Project.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">d.</TD><TD STYLE="text-align: justify">The reimbursement will be calculated in accordance with the APP Agreement.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For purposes of carrying out the delivery
of this notice in terms of the provisions of Clause Thirty Eighth of the APP Agreement<FONT STYLE="font-size: 10pt"><SUP>30</SUP></FONT>,
I hereby inform you that this notice will be delivered to you by Mr. Alejandro Aguilera Martinez, in his capacity as legal representative
of this State Water Commission of Baja California.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Without further ado, saying goodbye to
You.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SINCERELY,</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Illegible signature]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MR. LUIS GRANADOS PACHECO</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENERAL DIRECTOR AND LEGAL REPRESENTATIVE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OF THE STATE WATER COMMISSION OF BAJA
CALIFORNIA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AS CONTRACTOR OF THE APP AGREEMENT.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[Illegible signature]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MR. RIGOBERTO LABORIN VALDEZ</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>GENERAL DIRECTOR OF THE STATE COMMISSION
OF PUBLIC UTILITIES OF TIJUANA.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV STYLE="margin-top: 3pt; margin-bottom: 3pt; width: 25%"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>29</SUP> Cfr. Note 13.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>30</SUP> Cfr. Note 5.</P>

<!-- Field: Page; Sequence: 10 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt"></P><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%"><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in; width: 50%"><FONT STYLE="font-size: 10pt">[Seal that says</FONT></TD><TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-top: 2.5pt; padding-right: 5.4pt; padding-left: 5.4pt; width: 50%"><FONT STYLE="font-size: 8pt"><B>AGENCY: </B>STATE WATER COMMISSION OF BAJA CALIFORNIA.</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">CEA &ndash; <I>Comisi&oacute;n </I></FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">Estatal del Agua]</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>SECTION: </B>GENERAL DIRECTION</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; font: 10pt Times New Roman, Times, Serif; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR><TR STYLE="vertical-align: bottom"><TD STYLE="padding-left: 0.25in"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD><TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; font: 10pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-bottom: 2.5pt; padding-left: 5.4pt"><FONT STYLE="font-size: 8pt"><B>OFFICIAL COMMUNICATION:</B> DG/122/2020</FONT></TD></TR></TABLE><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.5in; text-align: left">c.c.</TD><TD STYLE="text-align: justify">Members of the State Committee for Public-Private Partnership
Projects. Present</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">General Minister of the Government of Baja
California.- Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">Minister of Finance of the State of Baja
California.- Present</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 35.4pt">Minister of Infrastructure,
Urban Development and Territorial Reorganization of the State of Baja California.- Present</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">Minister of Water of the State of Baja
California. Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">Minister of Honesty and Public Function.
Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">H. Board of Directors of CEA.- Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 35.4pt; text-align: justify">Mr. Juan Carlos Saldoval in
his capacity as representative of the State Water Commission of Baja California in terms of this official communication- present</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">Project Supervision.- Present.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 35.4pt">Project Logbook.- Archive</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<!-- Field: Page; Sequence: 11; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 60%"><P STYLE="text-align: right; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">[Illegible signature]</P></TD><TD STYLE="white-space: nowrap; width: 25%; text-align: center"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in; text-align: left; margin-top: 0pt; margin-bottom: 0pt">[Illegible signature]</P></TD><TD STYLE="width: 15%; text-align: right"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
