INTERCOMPANY LOAN AGREEMENT
28 June 2006
We, Cascal B.V. (the Intercompany Loan Provider ) offer to place at the disposal of Biwater Plc (the
Borrower ) a sterling loan facility in the maximum aggregate principal amount of £3,500,000.
Subject to the Intercompany Loan Provider having received from the Borrower a request for a loan (an
Intercompany Loan ) no more than 3 Business Days prior to the date on which the Borrower requires such
Intercompany Loan, the Intercompany Loan Provider shall make advances in the amounts specified in such
request up to the maximum aggregate principal specified above.
The Borrower irrevocably directs the Intercompany Loan Provider to pay the amount of any advance under this
Intercompany Loan Agreement to its account at such office or bank as it may notify to the Intercompany Loan
Provider for this purpose.
The Borrower promises to pay on the date falling three business days prior to the anticipated completion date of
the Agreement For The Sale And Purchase Of Shares In The China Water Company dated 14 April 2006 (the
Maturity Date ) to the order of the Intercompany Loan Provider, the principal sum of £3,500,000 or so much
thereof as may have been advanced by the Intercompany Loan Provider to the Borrower as Intercompany
Loans. In the event that the Agreement For The Sale And Purchase Of Shares In The China Water Company
dated 14 April 2006 is not completed before 30 September 2006 then the Maturity Date will be 31
October 2006, or such later date as the Intercompany Loan Provider and the Borrower shall mutually agree in
3. Intercompany Loan Interest
Each Intercompany Loan made pursuant to this Agreement shall bear interest (the Intercompany Loan
Interest ) from the date it is made until the Maturity Date at a rate equal to 5.00% per annum. The Intercompany
Loan Provider and the Borrower agree that any payment of Intercompany Loan Interest by the Borrower
pursuant to this Agreement will, subject to