(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 its business or materially impair the value
of the property subject thercto
(H) Purchase money Liens on trucks and other rolling stock and the proceeds thereot
to secure debt permitted under Section 6.02E) 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 Jetters 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; (1) 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 Coinpany with respect to tax
exempt debt obligations issued by the State of New Hampshire or any agency or departinent thereof in
order to finance the expansion of the Company’s water utility facilities.
SECTION 6.03. Salc, Transfer or Lease of Assets. Sell, transfer, lease or otherwise dispose
of any of its asset, 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. Deciare or pay, directly or indirectly, any Distribution untess
after giving effect thereto: {A} no Default or Event of Defaul: will exist (including as a result of a breach
of ans financtal covenant set forth in Article 7 hereaf); and (Bi the Company will have a Total Debt ta
Total Capitalivation Ratio of less than 654%.
SECTION 6.05. Contingent Liabilities. Assume, guarantee, endorse, ar otherwise be or
become directly or contingently responsible or liabie for the obligations of any Person (including by
means of an agreement to: (A) purchase any obligation, stock, assets, or services; (8) 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 simi.ar transactions in the ordinary course of business.
SECTION 6.06. Mergers, Etc. Merge or consolidate weth any other Person or acquire all or
a material part of the assets of any other Person, or change the ‘urisdiction 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 whase 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. jurisdietion of formation, or organizationa! number (if any).
{t
