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Approval by the Pennichuck Board of Directors. The Pennichuck Board of Directors has
approved the proposed replacement of the Line of Credit with TD Bank, N.A.
Purposes Served by the Line of Credit. The Company requires the proposed Line of Credit to
allow it to continue to meet its obligations to provide high quality water service to all of its
customers at affordable prices. The Company intends to draw upon the Line of Credit facility as
needed to fund current operations on an interim basis until such costs may be funded on a
permanent basis. A facility of this size is common for water utility operations of similar type and
size, excluding funding needs for ongoing capital and infrastructure improvements. The proposed
interest rate and terms are consistent with those required by current market conditions.
Requested Approvals. For the reasons described above, Pennichuck respectfully requests that
the City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article IX (3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:
RESOLVED, that the City hereby approves the renewal of Pennichuck
Corporation’s existing line of credit facility, allowing for borrowing by
Pennichuck Corporation under its line of credit, in the aggregate principal
amount of up to $4,000,000.00 from TD Bank, N.A., pursuant to a senior line
of credit facility (the “LOC Facility”), for the purpose of providing advances
to be used for general corporate purposes.
FURTHER RESOLVED, that Pennichuck Corporation, its Board of Directors
and its Officers are severally authorized, empowered and directed to execute
and deliver, in the name of and on behalf of the Company, all documents
required to enter into the loan agreement governing the LOC Facility and
related documents and agreements (the “Agreement”), with such terms,
including exhibits and schedules to such Agreement, as may be deemed
necessary or advisable in the several judgment of the Officers executing the
Agreement, and to take all other actions as they deem necessary or desirable to
effect the LOC Facility and the Agreement and to carry out the purposes of
these resolutions.
Respectfully submitted,
PENNICHUCK CORPORATION
2 yxl.
Larry D. Goodhue
Chief Executive Officer
cc: Mayor James Donchess
