Summary of CONNECTICUT WATER SERVICE INC / CT

Item 1.01 Entry into a Material Definitive Agreement

Entry into New Term Loan for Maine Water Company

On December 7, 2012, the Maine Water Company, a Maine corporation ("Maine Water"), entered into an amended and restated Master Loan Agreement (the "Agreement") with CoBank, ACB, a federally chartered instrumentality of the United States ("CoBank"), dated as of December 1, 2012. Maine Water is an operating water utility subsidiary of Connecticut Water Service, Inc., a Connecticut corporation ("CWS"), the registrant.

Maine Water also delivered to CoBank a Promissory Note and Single Advance Term Loan Supplements dated December 1, 2012 and entered into on December 7, 2012 (the "Promissory Note"). On the terms and subject to the conditions set forth in the Promissory Note issued pursuant to the Agreement, CoBank agreed to make a loan, secured only by Maine Water's statutorily required equity interest in CoBank, (the "Loan") to Maine Water in the principal amount of $1,965,000, as follows:

      Promissory Note              Principal Amount             Maturity Date
Promissory Note and Single
Advance Term Loan Supplement
No. RI0042T02                         $1,965,000                Dec. 15, 2017

The Agreement contains customary representations and warranties, which are in certain cases modified by "materiality" and "knowledge" qualifiers, and customary affirmative and negative covenants. Subject to the payment of a surcharge described in the Agreement for a Loan bearing interest at fixed rates, Maine Water may prepay the Loan in whole or in part at any time prior to the Maturity Date specified above.

Under the Agreement, Maine Water is required to maintain together with its consolidated subsidiaries at all times: (1) a ratio of Total Debt to Total Capitalization (as such terms are defined in the Agreement) of not more than 0.60 to 1.00; and (2) a ratio of EBITDA to Interest Expense (as such terms are defined in the Agreement) of not less than 3.00 to 1.00.

Under the Promissory Note, Maine Water will pay interest on the Loan in accordance with either of the following interest rate options, as selected periodically by Maine Water: (1) at a weekly quoted variable rate, a rate per annum equal to the rate of interest established by CoBank on the first business day of each week; (2) at a fixed rate per annum to be quoted by CoBank in its sole discretion in each instance for periods of 180 days or more. Interest shall be calculated on the actual number of days each Loan is outstanding on the basis of a year consisting of 360 days.

The Agreement defines an "Event of Default" to include the

following: payment defaults under the Agreement or the Promissory Note, breaches by Maine Water of its representations, warranties, covenants and other agreements under the Agreement or the Promissory Note, cross-defaults or failures to make payments when due under Maine Water or its affiliates' other loan agreements with CoBank or its affiliates, certain specified judgments, casualty, condemnation or insolvency or bankruptcy events, and certain specified material adverse changes in the condition, financial or otherwise, operations, business or properties of Maine Water. Upon the occurrence and during the continuance of an Event of Default, CoBank shall have no obligation to make the Loan to Maine Water and may discontinue doing so at any time without prior notice. In addition, CoBank may, upon notice to Maine Water, terminate the Loan commitment and declare the unpaid principal balance of the Loan, all accrued interest thereon, and all other amounts payable under the Agreement and the Promissory Note, to be immediately due and payable, and exercise its other remedies set forth in the Agreement.

On December 7, 2012, Maine Water used substantially all of the proceeds of the above described Loan from CoBank to reimburse itself for the repayment in full on November 29, 2012 of all principal, accrued interest, premiums, surcharges and other amounts owed by Maine Water pursuant to its $1,965,000 of 5.05% long term bonds, (1999 Series H, Due 2024) previously issued in 1999 through the Town of Buckspart, Maine via a Loan Agreement and Bond Purchase Agreement and subject to the Indenture, dated as of April 1, 1961, as amended.

The above summary of the material terms of the Agreement and the Promissory Note is qualified in its entirety by reference to: (1) the Agreement, dated as of December 1, 2012 and entered into on December 7, 2012, and (2) the Promissory Note and Single Advance Term Loan Supplements, as of December 1, 2012 and entered into on December 7, 2012, complete copies of which are attached hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and are hereby incorporated herein by reference.

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