SECTION 3.10. 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,
(8) obtain and maintain title to, valid leasehold interests in, or other valid interests finciuding easements,
licenses and servitudes) in, ail real property oa which all water wells, reservoirs, walter and wastewater
treatment piants, and warehouse and storage facilities ave located, (C) keep all water rights and discharge
rights free and clear of any interest of any third party; and (1D) not suffer or permit any transfer er
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 Cofsank, while this Agreement is in effect, the
Company will not:
SECTION 6.01. Liens. Create, incur, assume, or suffer to exest any Lien on any of its
properties, except.
{A} Liens in favor of other lenders: provided, however, that’ (t} at the time thereof,
CoPank is granted a Lien on the same assets and such Lien is shared pro rata by CoBank and such other
lenders pursuant to an interereditoc agreement in form and substance reasonably satisfactory to CaBank;
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
duc and payable or, if due and payable: (4) the Company is contesting same in good faith by appropriate
proceedings: (12) the Company has established and maintains reserves in the amount due and payable
thereon (including interest and penalties); and (ii) foreclosure or other action to enforce the Lien is
stayed.
{C} Liens in favar 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 prececdings: (ii) the Company has established and
maintains reserves in the amount due and payable thereon (including interesc and penalties): and (iii)
foreclosure or other action to enforce the Lign is stayed,
(B) Deposits and pledves under workers’ compensation, unemployment insurange,
Social Security, or similar legislation (other than ERISA}
(EB) Depesits and pledges to sccure the performance of bids, tenders, contracts {other
than contracts for the payment of money), pudlic and statutery obligations, surety, stay, appeal,
indemnity, performance or other simJar bonds. or other similar obligations, in each case arising in the
ordinary course of business.
(F} Judgment and similar Liens arising m connection with court proceeding,
provided ihe execution or other enforcement of such [.iens is effectively stayed, the claims secured
thereby are heing 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.
