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reasonable and realistic, and no fact has come to light, and no event has occurred, which would cause any
material assumption made therein to not be reasonable or realistic.

SECTION 4.16. Water Rights. The Company: (A) has water rights with such amounts,
priorities and qualities as are necessary to adequately serve the customers of the Company; (B) controls,
owns, or has access to all such water rights free and clear of the interests of any third party; and (C) has
not suffered or permitted any transfer or encumbrance of such water rights, has not abandoned such water
rights, or any of them, and has not done any act or thing which would impair or causc the loss of any
such water rights.

SECTION 4.17. Facilities. The Company's utility facilities: (A) meet present demand in all
material respects; (B) are constructed in a good and professional manner; (C) are in good working order
and condition; and (D) comply in all material respects with all applicable Laws.

SECTION 4.18. Rate Matters. (A) The Company's rates for water and/or wastewater
services are subject to rate regulation by the Public Utilities Commission of the State of New Hampshire;
and (B) there is no pending and, to the Company's knowledge, threatened action or proceeding before any
court or governmental authority, the objective or result of which is or could be to: (1) reduce or otherwise
adversely change any of the Company’s rates for the provision of water and/or wastewater services; (2)
limit or revoke any of the Company’s permits or other authorizations to conduct business; or (3) except
as disclosed in any application submitted in connection with the Promissory Note and Supplement,
otherwise have a Material Adverse Effect.

SECTION 4.19. Enforcement Actions. The Company is not subject to any Enforcement
Action and, to the knowledge of the Company, no such actions have been threatened or are contemplated.

SECTION 4.20. Taxes. The Company has timely and properly filed all tax returns (federal,
state and local) that were required to be filed, and has paid any taxes, assessments, and other
governmental! charges, including interest and penalties. There are no audits pending or, to the knowledge
of the Company, threatened against the Company.

ARTICLE 5
AFFIRMATIVE COVENANTS

Unless otherwise agreed to in writing by CoBank, while this Agreement ts in effect, the
Company agrees to:

SECTION 5.01. Maintenance of Existence, Etc. Preserve and maintain its existence and
good standing in the jurisdiction of its formation, qualify and remain qualified to transact business in all
jurisdictions where such qualification is required, and obtain and maintain all licenses, permits,
franchises, patents, copyrights, trademarks, tradenames, or rights thereto which are material to the
conduct of its business or required by Law.

SECTION 5.02. Compliance With Laws. Comply in all material respects with all
applicable Laws (including all Laws relating to the environment). In addition, the Company agrees to
cause all Persons occupying or present on any of its properties to comply in all material respects with all
such Laws.

SECTION 5.03. Insurance. Maintain insurance with financially sound and reputable
insurance companies or associations reasonably acceptable to CoBank in such amounts and covering
such risks as are usually carried by companies engaged in the same business and similarly situated, and
make such increases in the amounts or coverage thereof as CoBank may from time to time require.
Without limiting the foregoing, in the event any property of the Company is located in a flood zone, then
the Company shall obtain such flood insurance as may be required by CoBank. All policies insuring any
collateral shall have lender or mortgagee loss payable clauses or endorsements in form and content
acceptable to CoBank. At CoBank’s request, the Company agrees to deliver to CoBank such proof of
compliance with this Section as CoBank may require.

SECTION 5.04. Property Maintenance. Maintain all of its properties that are necessary to
or useful in the proper conduct of its business in good repair, working order and condition, ordinary wear
and tear excepted, and make all alterations, improvements and replacements thereto as may from time to
time be necessary in order to ensure that its properties remain in good working order and condition. The
Company agrees that at CoBank’s request, which request may not be made more than once a year, the
Company will furnish to CoBank a report on the condition of the Company’s property prepared by a
professional engineer satisfactory to CoBank.

SECTION 5.05. Books and Records. Keep adequate records and books of account in which
complete entries will be made in accordance with GAAP.

SECTION 5.06. Reports and Notices. Furnish to CoBank:

(A) Annual Financial Statements. As soon as available, but in no event more than
120 days after the end of each fiscal year of the Company occurring during the term hereof, annual
consolidated and consolidating financial statements of the Company and its consolidated subsidiaries, if
any, prepared in accordance with GAAP consistently applied (or the. appropriate standards of the
regulatory agency having jurisdiction over the Company). Such financial statements shall: (a) be audited
by independent certified public accountants selected by the Company and acceptable to CoBank; (b) be
accompanied by a report of such accountants containing an opinion thereon acceptable to CoBank; (c) be
prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of
income, a statement of retained earnings, a statement of cash flows, and all notes and schedules relating
thereto. Notwithstanding the foregoing, the delivery within the time period specified above of the
Guarantor’s Annual Report on Form 10-K for such fiscal year containing consolidating information on
the Company (together with the Guarantor’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 of the Exchange Act) prepared in accordance with the requirements therefor and filed with
the Securities and Exchange Commission, together with the accountant’s certificate described above,
shall be deemed to satisfy the requirements of this Section 5.06(A);

(B) Quarterly Financial Statements. As soon as available, but in no event more
than 60 days after the end of each fiscal quarter of the Company occurring during the term hereof (other
than the last fiscal quarter in each fiscal year), such Company prepared quarterly financial statements as
CoBank may from time to time request.

(C) Annual Officer's Certificate. Together with each set of financial statements
delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a duly completed and executed
certificate of the Chief Financial Officer of the Company in the form attached hereto as Exhibit B,

(D) Annual Budgets. As soon as available, but in no event more than 90 days after
the beginning of each fiscal year of the Company, an annua! budget and forecast of operations and capital
expenditures for the Company for such year, which budget must be in form and content reasonably
acceptable to CoBank.

(E) Notice of Litigation, Material Matters, Etc. Promptly after becoming aware
thereof, notice of: (1) the commencement of any action, suit or proceeding before any court,
governmental instrumentality, arbitrator, mediator or the like which, if adversely decided, could have a
Material Adverse Effect; (2) the commencement of any Enforcement Action; (3) the receipt of any
notice, indictment, pleading, or other communication alleging a condition that may require the Company
to undertake or to contribute to a clean-up or other response under any environmental Law, or which
seeks penalties, damages, injunctive relief, or other relief as a result of an alleged violation of any such
Law, or which claims personal injury or property damage as a result of environmental factors or
conditions; and (4) the occurrence of any other event or matter (including the rendering of any order,
judgment, ruling and the like) which could have a Material Adverse Effect.

(F) Notice of Default. Promptly after becoming aware thercof, notice of the
occurrence of a Default or an Event of Default.

(G) Notice of Certain Events. At least 60 days prior thereto notice of any change in
the: (1) principal place of business of the Company; or (2) the office where the records concerning the
Company’s accounts are kept.

(H) Other Notices. Such other notices as may be required by any Promissory Note
and Supplement or any other Loan Document.

() Other Information. Such other information regarding the condition or
operations, financial or otherwise, of the Company as CoBank may from time to time reasonably request,
including, but not limited to, budgets, interim financial statements, and copies of all pleadings, notices
and communications referred to in Section 5.06(E) hereof.

SECTION 5.07. Conduct of Business. Engage in an efficient and economical manner in the
business conducted by it on the date hereof.

SECTION 5.08. Capital. Acquire equity in CoBank in such amounts and at such times as
CoBank may from time to time require in accordance with its bylaws and capital plan (as each may be
amended from time to time), except that the maximum amount of equity that the Company may be
required to purchase in connection with a loan may not exceed the maximum amount permitted by
CoBank’s bylaws at the time the Promissory Note and Supplement relating to such loan is entered into or
such loan is renewed or refinanced by CoBank. The rights and obligations of the parties with respect to
such equity and any patronage or other distributions made by CoBank shall be governed by CoBank’s
bylaws and capital plan (as each may be amended from time to time).

SECTION 5.09. Inspection. Permit CoBank or its agents, upon reasonable notice and during
normal business hours or at such other times as the parties may agree, to examine the properties, books
and records of the Company, and to discuss its affairs, finances and accounts with its officers, directors,
and independent certified public accountants.

SECTION 5.10. Water Rights, Title to Property, Etc. (A) Obtain and maintain water rights
in such amounts, priorities and qualities as are necessary at all times to meet the needs of its customers;
(B) obtain and maintain title to, valid leasehold interests in, or other valid interests (including easements,
licenses and servitudes) in, all real property on which all water wells, reservoirs, water and wastewater
treatment plants, and warehouse and storage facilities are located; (C) keep all water rights and discharge
rights free and clear of any interest of any third party; and (D) not suffer or permit any transfer or
encumbrance of any water rights or discharge rights, or abandon any water rights or discharge rights, or
do any act or thing which would impair or cause the loss of any water rights or discharge rights.

ARTICLE 6
NEGATIVE COVENANTS

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the
Company will not:

SECTION 6.01. Liens. Create, incur, assume, or suffer to exist any Lien on any of its
properties, except:

(A) Liens in favor of other lenders; provided, however, that: (1) at the time thereof,
CoBank is granted a Lien on the same assets and such Lien is shared pro rata by CoBank and such other
lenders pursuant to an intercreditor agreement in form and substance reasonably satisfactory to CoBank;
and (2) the instruments and documents granting and/or perfecting such Lien are in form and content
reasonably satisfactory to CoBank.

(B) Liens for taxes or assessments or other governmental charges or levies if not yet
due and payable or, if due and payable: (i) the Company is contesting same in good faith by appropriate
proceedings; (ii) the Company has established and maintains reserves in the amount due and payable
thereon (including interest and penalties); and (ti!) foreclosure or other action to enforce the Lien is
stayed.

(C) Liens in favor of mechanics, landlords, material suppliers, warehouses, carriers,
and like Persons that secure obligations that are not past due or if due and payable: (i) the Company is
contesting same in good faith by appropriate proceedings; (ii) the Company has established and
maintains reserves in the amount due and payable thereon (including interest and penalties); and (iii)
foreclosure or other action to enforce the Lien is stayed.

(D) Deposits and pledges under workers' compensation, unemployment insurance,
Social Security, or similar legislation (other than ERISA).

(E) Deposits and pledges to secure the performance of bids, tenders, contracts (other
than contracts for the payment of money), public and statutory obligations, surety, stay, appeal,
indemnity, performance or other similar bonds, or other similar obligations, in each case arising in the
ordinary course of business.

(F) Judgment and similar Liens arising in connection with court proceeding,
provided the execution or other enforcement of such Liens is effectively stayed, the claims secured
thereby are being actively contested in good faith and by appropriate proceedings, and reserves in the
amount secured thereby (including interest and penalties) are established and maintained by the
Company.

(G) Easements, rights-of-way, restrictions, and other similar encumbrances which, in
the aggregate, do not materially interfere with the occupation, use, and enjoyment by the Company of the
property or assets encumbered thereby in the normal course of tts business or materially impair the value
of the property subject thereto.

(H) Purchase money Liens on trucks and other rolling stock and the proceeds thereof
to secure debt permitted under Section 6.02(E) hereof.

SECTION 6.02. Debt. Create, incur, assume, or suffer to exist, any indebtedness or
liability for borrowed money or for the deferred purchase price of property or services or for letters of
credit, except that, as long as the Company is and remains in compliance with Article 7 hereof, for: (A)
debt of the Company to CoBank; (B) debt to the New Hampshire State Revolving Fund incurred to
finance the expansion of the Company’s water utility facilities; (C) debt to the Guarantor; provided,
however, that such debt is subordinate to all obligations of the Company to CoBank on terms and
conditions satisfactory to CoBank; (D) accounts payable to trade creditors incurred in the ordinary course
of business; (E) purchase money indebtedness and capital leases in an aggregate principal amount not to
exceed, at any one time outstanding, $200,000; and (F) obligations of the Company with respect to tax
exempt debt obligations issued by the State of New Hampshire or any agency or department thereof in
order to finance the expansion of the Company’s water utility facilities.

SECTION 6.03. Sale, Transfer or Lease of Assets. Sell, transfer, lease or otherwise dispose
of any of its assets except for: (A) the sale of water and wastewater services in the ordinary course of
business; and (B) the sale, lease or other disposition of equipment which is: (1) obsolete, worn-out or no
longer necessary for, or useful in, the provision of water and wastewater services to customers in its
service territories; and (2) not occasioned by the discontinuance of service to any portion of its service
territory.

SECTION 6.04. Distributions. Declare or pay, directly or indirectly, any Distribution unless
after giving effect thereto: (A) no Default or Event of Default will exist (including as a result of a breach
of any financial covenant set forth in Article 7 hereof); and (B) the Company will have a Total Debt to
Total Capitalization Ratio of less than 65%.

SECTION 6.05. Contingent Liabilities. Assume, guarantee, endorse, or otherwise be or
become directly or contingently responsible or liable for the obligations of any Person (including by
means of an agreement to: (A) purchase any obligation, stock, assets, or services; (B) supply or advance
any funds, assets, or services; or (C) cause any Person to maintain a minimum working capital or net
worth or other financial test), except by the endorsement of negotiable instruments for deposit or
collection or similar transactions in the ordinary course of business.

SECTION 6.06. Mergers, Etc. Merge or consolidate with any other Person or acquire all or
a material part of the assets of any other Person, or change the jurisdiction of its formation, except for
mergers or acquisitions where: (A) the Company is the surviving entity; and (B) the Person merged into
the Company or whose assets were acquired was a regulated water system or a water system owned by
the Guarantor.

SECTION 6.07. Change in Business, Etc.. Engage in any business activities or operations

substantially different from or unrelated to its present business activities or operations or make any
change in the Company's name, structure, jurisdiction of formation, or organizational number (if any).

10

SECTION 6.08. Prepayment. While any Default or Event of Default shall have occurred
and be continuing, prepay, directly or indirectly, any debt (other than debt to CoBank).

SECTION 6.09. Investments. Make any loan or advance to, or deposit any funds of the
Company in, or purchase or otherwise acquire any capital stock, obligations, or other securities of, or
make any capital contribution to, or otherwise invest in or acquire any interest in, any Person (including a
Subsidiary), or participate as a partner or joint venturer with any other Person (collectively,
"Investments"), except: (A) securities or deposits issued, guaranteed or fully insured as to payment by the
United States of America or any agency thereof; (B) commercial paper of a domestic issuer rated at least
"A-I" by Standard & Poor's Corporation or "P-1" by Moody's Investors Service, Inc.; and (C)
intercompany loans made in accordance with the Money Pool Agreement; and (D) Investments in
CoBank.

SECTION 6.10. Certain Agreements. Amend, alter, waive any provision of, breach or
terminate any agrecment (or accept any termination by the other party) if such action could reasonably be
expected to have a Material Adverse Effect.

SECTION 6.11. Transactions with Affiliates. Enter into any transaction with an Affiliate
except in the ordinary course of and pursuant to the reasonable requirements of its business and upon fair
and reasonable terms no less favorable to the Company than would obtain in a comparable arm's-length
transaction with a Person not an Affiliate.

ARTICLE 7
FINANCIAL COVENANTS

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect:

SECTION 7.01. Debt Service Coverage Ratio. The Company shall have for cach fiscal year
of the Company, a Debt Service Coverage Ratio of not less than 1.25 to 1.00.

SECTION 7.02. Total Debt to Total Capitalization Ratio. The Company shall have at the
end of each fiscal year of the Company, a Total Debt to Total Capitalization Ratio of not more than .65 to
1.00.

SECTION 7.03. Fiscal Year. The Company will not change its fiscal year.

ARTICLE 8
EVENTS OF DEFAULT

Each of the following shall constitute an “Event of Default” hereunder:

SECTION 8.01. Payment Default. The Company should fail to make when duc any payment
to CoBank hereunder, under any Promissory Note and Supplement, or under any other Loan Document.

SECTION 8.02. Representations and Warranties, Etc. Any opinion, certificate or like
document furnished to CoBank by or on behalf of the Company, or any representation or warranty made
or deemed made by the Company herein or in any other Loan Document, shall prove to have been false
or misleading in any material respect on or as of the date furnished, made or deemed made.

SECTION 8.03. Covenants. The Company should fail to perform or comply with any
covenant set forth in Article 5 hereof (other than Sections 5.01, 5.06(F) and 5.10) and such failure
continues for 30 days after written notice thereof shall have been delivered to the Company by CoBank.

SECTION 8.04. Other Covenants and Agreements. The Company should fail to perform or
comply with Sections 5.01, 5.06(F) or 5.10, or any other covenant or agreement contained herein or in
any Promissory Note and Supplement, or shall use the proceeds of any loan for any unauthorized
purpose.

SECTION 8.05. Cross Default. The Company should, after any applicable grace period,
breach or be in default under the terms of any other Loan Document, any other agreement with CoBank,
or any agreement with any affiliate of CoBank, including the Farm Credit Leasing Services Corporation.

SECTION 8.06. Other Indebtedness. The Company should fail to pay when due any
indebtedness to any other person or entity for borrowed money or any long-term obligation for the
deferred purchase price of property (including any capitalized lease), or any other event occurs which,
under any agreement or instrument relating to such indebtedness or obligation, has the effect of
accelerating or permitting the acceleration of such indebtedness or obligation, whether or not such
indebtedness or obligation is actually accelerated or the right to accelerate is conditioned on the giving of
notice, the passage of time, or otherwise.

SECTION 8.07. Judgments. A judgment, decree, or order for the payment of money shall
have been rendered against the Company and either: (A) enforcement proceedings shall have becn
commenced; (B) a Lien having priority over any Lien of CoBank shall have been obtained; or (C) such
judgment, decree, or order shall continue unsatisfied and in effect for a period of 30 consecutive days
without being vacated, bonded, discharged, satisfied, or stayed pending appeal.

SECTION 8.08. Insolvency, Etc. The Company shall: (A) become insolvent or shall
generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become
duc; or (B) suspend its business operations or a material part thereof; or (C) apply for, consent to, or
acquiesce in the appointment of a trustee, receiver, or other custodian for it or any of its property; or (D)
have commenced against it any action or proceeding for the appointment of a trustee, receiver, or other
custodian, or a trustee, receiver, or other custodian is appointed for all or any part of its property; (E)
have commenced against it any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution, or liquidation law of any jurisdiction; or (F) make an assignment for
the benefit of creditors or commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution, or liquidation law of any jurisdiction.

SECTION 8.09. Casualty or Condemnation. All or a material portion of the assets of the
Company: (A) are destroyed in a casualty or like event (regardless of the cause); or (B) are actually taken
in a condemnation action or proceeding or in a like proceeding or are sold or otherwise transferred in lieu
thereof or pursuant to any right of any governmental authority to direct the sale of transfer thereof.

SECTION 8.10. Material Adverse Change. Any material adverse change occurs, as
reasonably determined by CoBank, in the condition, financial or otherwise, operations, business or
properties of the Company or in its ability to perform its obligations hereunder, under any security
instrument or document, or under any other Loan Document.

SECTION 8.11. Changes in Ownership. The Company shall cease to be owned 100% by
the Guarantor or 50% or more of the voting stock in the Guarantor should be acquired by a Person or a
Person and one or more Affiliates of that Person.

SECTION 8.12. Guaranty, Etc. The Guaranty shall, at any time, cease to be in full
force and effect, or shall be revoked or declared null and void, or the validity or enforceability thereof
shall be contested by the Guarantor, or the Guarantor shall deny any further liability or obligation
thereunder, or shall fail to perform its obligations thereunder, or any representation or warranty set forth
therein shall be breached, or the Guarantor shall breach or be in default under the terms of any other
agreement with CoBank (including any loan agreement or security agreement), or an Event of Default of
the type set forth in Sections 8.06 through 8.10 hereof shall occur with respect to the Guarantor.

SECTION 8.13. PWW. The Consent and Agreement shall, at any time, cease to be in full
force and effect, or shall be revoked or declared null and void, or the validity or enforceability thereof
shall be contested by PWW, or PWW shall deny any further liability or obligation thereunder, or shall
fail to perform its obligations thereunder, or an Event of Default of the type set forth in Sections 8.06,
8.07, 8.08, 8.09(A), or 8.10 hereof shall occur with respect to PWW, or an Event of Default of the type
referred to in Sections 8.09(B) or 8.11 shall occur with respect to PWW and, in CoBank’s sole discretion,
such event could have a material adverse effect on the condition, financial or otherwise, operations,
business or properties of the Company or in its ability to conduct is business or perform its obligations
hereunder, under any security instrument or document, or under any other Loan Document.

ARTICLE 9
REMEDIES UPON DEFAULT

SECTION 9.01. Remedies. Upon the occurrence and during the continuance of a Default or
Event of Default, CoBank shall have no obligation to make any loan to the Company and may
discontinue doing so at any time without prior notice. In addition, upon the occurrence and during the
continuance of an Event of Default, CoBank may, upon notice to the Company:

(A) Termination and Acceleration. Terminate any commitment and declare the
unpaid principal balance of the loans, all accrued interest thereon, and all other amounts payable under
this Agreement, the Promissory Notes and Supplements, and ail other Loan Documents to be
immediately due and payable; provided, however, that upon the occurrence of an Event of Default under
Section 8.08(F), any commitments shall automatically be terminated and all such amounts shall
automatically become due and payable. Upon such a declaration (or automatically, as provided above),
the unpaid principal balance of the loans and all such other amounts shall become immediately due and
payable, without protest, presentment, demand, or further notice of any kind, all of which are hereby
expressly waived by the Company.

(B) Enforcement. Proceed to protect, exercise, and enforce such rights and
remedies as may be provided by this Agreement, any other Loan Document, or under Law. Each and
every one of such rights and remedies shall be cumulative and may be exercised from time to time, and
no failure on the part of CoBank to exercise, and no delay in exercising, any right or remedy shall operate
as a waiver thereof, and no single or partial exercise of any right or remedy shall preclude any future or
other exercise thereof, or the exercise of any other right. Without limiting the foregoing, CoBank may
hold and/or sct off and apply against the Company’s obligations to CoBank the proceeds of any equity in
CoBank and any balances held in any account maintained at CoBank (whether or not such balances are
then due).

NH Tax Shift Plan - Income Tax Table

Number of Exemptions

AGI 1 2 3 4 5 6 7 8 9 10
$150 $0 $0 $0 $0 $0 $0 $0 $0 $0
$15,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$36 $0 $0 $0 $0 $0 $0 $0 $0 $0
$348 $150 $0 $0 $0 $0 $0 $0 $0 $0
$20,000 $103 $0 $0 $0 $0 $0 $0 $0 $0 $0
$233 $36 $0 $0 $0 $0 $0 $0 $0 $0
$545 $348 $150 $0 $0 $0 $0 $0 $0 $0
$25,000 $300 $103 $0 $0 $0 $0 $0 $0 $0 $0
$431 $233 $36 $0 $0 $0 $0 $0 $0 $0
$743 $628 $472 $316 $160 $4 $0 $0 $0 $0
$30,000 $498 $300 $103 $0 $0 $0 $0 $0 $0 $0
$628 $431 $233 $36 $0 $0 $0 $0 $0 $0
$940 $743 $545 $348 $150 $0 $0 $0 $0 $0
$35,000 $695 $498 $300 $103 $0 $0 30 $0 $0 $0
$826 9628 $431 $233 $36 $0 $0 $0 $0 $0
$1,138 $940 $743 $545 $348 $150 $0 $0 $0 $0
$40,000 $893 $695 $498 $300 $103 $0 $0 $0 $0 $0
$1,023 $826 $628 $431 $233 $36 $0 $0 $0 $0
$1,335 $1,138 $940 $743 $545 $348 $150 $0 $0 $0
$45,000 $1,090 $893 $695 $498 $300 $103 $0 $0 $0 $0
$1,221 $1,023 $826 $628 $431 $233 $36 $0 $0 $0
$1,533 $1,335 $1,138 $940 $743 $545 $348 $150 $0 $0
$50,000 $1,288 $1,090 $893 $695 $498 $300 $103 $0 $0 $0
$1,418 $1,221 $1,023 $826 $628 $431 $233 $36 $0 $0
$1,730 $1,533 $1,335 $1,138 $940 $743 $545 $348 $150 $0
$55,000 $1,485 $1,288 $1,090 $893 $695 $498 $300 $103 $0 $0
$1,616 $1,418 $1,221 $1,023 $826 $628 $431 $233 $36 $0
$1,928 $1,730 $1,533 $1,335 $1,138 $940 $743 $545 $348 $150
$60,000 $1,683 $1,485 $1,288 $1,090 $893 $695 $498 $300 $103 $0
$1,813 $1,616 $1,418 $1,221 $1,023 $826 $628 $431 $233 $36
$2,125 $1,928 $1,730 $1,533 $1,335 $1,138 $940 $743 $545 $348
$65,000 $1,880 $1,683 $1,485 $1,288 $1,090 $893 $695 $498 $300 $103
$2,011 $1,813 $1,616 $1,418 $1,221 $1,023 $826 $628 $431 $233
$2,323 $2,125 $1,928 $1,730 $1,533 $1,335 $1,138 $940 $743 $545
$70,000 $2,078 $1,880 $1,683 $1,485 $1,288 $1,090 $893 $695 $498 $300
$2,208 $2,011 $1,813 $1,616 $1,418 $1,221 $1,023 $826 $628 $431
$2,520 $2,323 $2,125 $1,928 $1,730 $1,533 $1,335 $1,138 $940 $743
$75,000 $2,275 $2,078 $1,880 $1,683 $1,485 $1,288 $1,090 $893 $695 $498
$2,406 $2,208 $2,011 $1,813 $1,616 $1,418 $1,221 $1,023 $826 $628
$2,718 $2,520 $2,323 $2,125 $1,928 $1,730 $1,533 $1,335 $1,138 $940
$80,000 $2,473 $2,275 $2,078 $1,880 $1,683 $1,485 $1,288 $1,090 $893 $695
$2,603 $2,406 $2,208 $2,011 $1,813 $1,616 $1,418 $1,221 $1,023 $826

Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household
Single
Jointly
Head of Household

$2.7 million for the year ended December 31, 2015, and approximately $2.5 million for the
year ended December 31, 2014.

Rate Stabilization Fund — Restricted Cash

As a part of the acquisition, Pennichuck agreed to contribute $5,000,000 of the proceeds
from the settlement transaction to PWW, which was used to establish a Rate Stabilization
Fund (“RSF”), allowing for the maintenance of stable water utility rates and providing a
mechanism to ensure the Company’s continued ability to meet its obligations under the
promissory note to the City, in the event of adverse revenue developments. Restricted cash
consists of amounts set aside in the RSF account, and is adjusted monthly as required in the
PUC Order, as discussed in Note 1 of these financial statements.

Municipal Acquisition Regulatory Asset (“MARA”)

Pursuant to the PUC Order, Pennichuck established a new Regulatory asset (MARA) which
represents the amount that the Acquisition Price exceeded the net book assets of Pennichuck’s
regulated subsidiaries (PWW, PEU, and PAC) at December 31, 2011. The initial amount of the
MARA was approximately $89 million for the regulated companies, offset by a non-regulated
amount of approximately $4.8 million. The MARA is to be amortized over a thirty (30) year
period in the same manner as the repayment of debt service for the City’s acquisition bonds.
The balance in the MARA at December 31, 2015 was approximately $81.5 million, reduced by
the non-regulated credit of approximately $4.5 million.

Aggregate amortization expense for the years ended December 31, 2015 and 2014 totaled
approximately $1,857,000 and $1,835,000, respectively.

The following table represents the total estimated amortization of MARA:

Estimated

Amortization
(in thousands) Expense
2016 $ 1,884
2017 1,917
2018 1,958
2019 2,006
2020 2,061
2021 and thereafter 67,202

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