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Torrington Water Line Protection Plan Terms and Conditions January 1, 2016 Service Agreement (“Service Agreement”) for your Water Service Line Protection Plan (“Plan”) Coverage (Please retain this Service Agreement as the only record of your coverage) What is covered under the Plan The Plan covers all parts, material, and labor required to perform the services described herein. The determination of whether and with what to repair or replace any covered parts is at the discretion of The Torrington Water Company (“Company”) Plan coverage includes paving of a driveway in the area of any driveway excavation, the replacement of any sidewalk sections that may have to be disturbed or excavated to make a repair, and the full loaming and seeding of lawn in area of repair to restore excavated area to a suitable condition that existed prior to excavation. Plan coverage does not include removal or replacement of trees. The final clean up where excavation occurred does not include the replacement of sod, shrubbery or mulch that were moved in order to repair a service leak or perform other work. In the event that such material must be moved to perform such work, the exposed area will be covered with grass seed. Coverage limit: The Standard Plan - $69.99 Plan provides up to $7,500 in annual, 12 month, protection The Premium Plan - $79.99 Plan provides up to $10,000 in annual, 12 month, protection Exclusions: What is NOT covered under the Plan The Plan specifically excludes service to the following: (a) any external water service line over 300 linear feet in length, regardless of where the leak may occur on the line; (b) main shut-off house valve; pressure reducing valve; booster pump; meter pit frame or cover; lawn or fire sprinkler systems; (c) repair or replace missing or broken curb boxes and covers, or raise or lower curb boxes, and the checking prior to any emergency service work on your water line to determine if a curb box and/or curb valve is in an inoperable condition; (d) any leaks inside the premises beyond the main shut-off valve in the house; (e) repair or replace water lines that are in a wetlands area or run under, over or through a body of water such as lake, river, stream, pond, ocean, swimming pool (whether above or below ground); (f) portions of a service line underneath concrete floors or patios; (g) any other part not specifically listed in this brochure under the description of the Plan; (h) equipment, including but not limited to service lines, damaged directly or indirectly as a result of you or any other party working on your property or in the vicinity of such service lines. This Plan does not cover any parts, material or labor required as a result of unusual circumstances, including but not limited to earthquake, aftershocks, volcanic eruption, landslide, flooding, hurricane, main break, or improperly installed pipes and

appurtenances, natural disaster, civil disobedience, riot or war. This Plan does NOT cover the cost of thawing a frozen water service line(s). The Residential Dwelling Owner’s Responsibility

IF YOU SUSPECT YOU HAVE A WATER SERVICE LINE LEAK, YOU ARE RESPONSIBLE FOR REPORTING IT TO THE COMPANY AS SOON AS IS PRACTICAL. THE 24/7 EMERGENCY NUMBER IS: (860-489-4149) If a service leak on your property causes a slippery or hazardous condition on your property, any other property, or any public street, you remain solely responsible for making such area safe. THE COMPANY WILL NOT BE LIABLE FOR ANY DAMAGE CAUSED BY SUCH SLIPPERY OR HAZARDOUS CONDITION.

Other Conditions/Restrictions 1. Eligibility for Coverage: The residential Water Service Line Protection Plan is available only to customers of The Torrington Water Company with one through six-family residential dwellings and/or mixed use residential or commercial properties located in the TWC service territory with a service line size up to and including two inches in diameter. Plan membership covers only one metered service line per residence dwelling. Separate Plan coverage is required for each additional service line on a property whether or not the additional line is individually metered. The Plan is not available to apartment buildings or condominium units or complexes, seasonal homes or properties having remained unoccupied for more than 90 days. Covered water service lines must conform to all applicable regulations. The customer must own the property traversed by the water service line, or they must show proof of a valid right of way or easement that permits access for the repair and/or replacement of the water service line if it crosses any intervening property (whether common or private). Service lines that cross intervening properties without a valid right of way or easement are not covered under the Plan. The Company reserves the right to deny Plan coverage for any reason stated in this Service Agreement. 2. Enrollment: Plan coverage begins 30 calendar days after the Company receives your enrollment form and payment unless during said 30 calendar day period the Company identifies, with an on-site inspection, that a condition exists precluding coverage (i.e., an existing leak, existing conformance with applicable regulations). Any condition identified by the Company after the expiration of the foregoing 30 calendar day period that could or should have been identified by the Company using generally recognized due diligence procedures during the aforesaid 30 calendar day period cannot later be used as the basis for denying or cancelling Plan coverage. If a Plan coverage payment check is returned for insufficient funds a $20.00 fee will be charged by TWC to the Plan holder. 3. Termination/cancellation of Plan(s): The Company reserves the right to terminate a Plan if a service person responding to a service call at your property determines that one or more of the following conditions exist: (a) you have caused the service line to no longer conform to all applicable regulations after plan coverage has commenced for you; (b) there are unsafe working conditions that you refuse to remedy. Customer failure to provide access to or otherwise permit the servicing of any parts necessary to maintain the parts covered under the Plan will automatically terminate the Plan. If a Service Agreement

is revoked for any of the above reasons, the Company will refund the amount you have paid for coverage for that year. The Company reserves the right to discontinue coverage if the property does not meet the eligibility requirements. If eligibility is denied, only the last payment will be refunded. If you fail to pay your annual fee by its expiration date or if you move outside the Plan service area and the balance of the Plan is not transferred to the new owner as herein provided, your Plan will be cancelled. If you sell your covered property, you may transfer the remaining balance of this Plan to a subsequent owner. Such transfer must be completed within thirty (30) calendar days from the closing date of sale to the subsequent owner. 4. Warranty: The Company warrants that the services provided by it under this Plan will be free from defects in workmanship and materials for a period of one (1) year after completion of such services. Any claim by you under this warranty must be made within one (1) year after the services are completed, and the Company’s obligations with respect to such a claim shall be limited to reperformance of the defective work and replacement of the defective materials. 5. Damages: THE COMPANY WILL NOT BE HELD LIABLE FOR ANY DAMAGE CAUSED TO YOUR PERSON OR PROPERTY UNLESS THAT DAMAGE RESULTS FROM THE NEGLIGENCE OF THE COMPANY, THE COMPANY’S SUBCONTRACTORS OR THE COMPANY’S AGENTS. HOWEVER, THE COMPANY WILL NOT BE RESPONSIBLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, SUCH AS (BUT NOT LIMITED TO) WATER DAMAGE OR COSTS OF INCREASED WATER CONSUMPTION CAUSED BY SERVICE LINE LEAKS. THE COMPANY WILL ALSO NOT BE REQUIRED TO PAY ANY PUNITIVE DAMAGES THAT ARE INTENDED TO PUNISH THE COMPANY FOR THE NEGLIGENCE OF THE COMPANY, THE COMPANY’S SUBCONTRACTORS OR THE COMPANY’S AGENTS OVER AND ABOVE THE ACTUAL DAMAGE SUFFERED BY YOU. Without limiting its legal effect, the foregoing means that the Company’s obligations to you, the property owner, under this Service Agreement are limited to (A) the obligations stated above in the section titled “What is covered under the Plan”, (B) the repair or replacement of your property’s water service line (commonly referred to as a “lateral”) if the damage was caused by the negligence of the Company, the Company’s subcontractors or the Company’s agents, including the documented costs incurred by the Company and/or you for such water service line repairs and replacements. 6. Response Time: Response time may vary based on several factors, including but not limited to weather conditions, work load and staffing. If there is an unsafe working condition present, the Company reserves the right to delay service to your premises until you make the work area safe. 7 All work under the Plan must be performed by The Torrington Water Company or a contractor preapproved by the Torrington Water Company. The Company will not pay for work otherwise covered under the Plan if such work is performed by a contractor hired by you or anyone else other than the Company. 8. Renewals: The Company will mail to you a renewal statement before the annual expiration of your Service Line Protection Plan. 9. To cancel or change your Plan to a new property, please call our office at 860-489-4149.