SECTION 8.11. Changes in Ownership. The Company shall cease to be owned 100% by
the Guarantor or 50% or more of the voting stock in the Guarantor should be acquired by a Person or a
Person and one or more Affiliates of that Person.
SECTION 8.03. Covenants. The Company should fail to perform or comply with any
covenant set forth in Article 5 hereof (other than Sections 5.01, 5.06(F) and 5.10) and such failure
continues for 30 days after written notice thereof shall have been delivered to the Company by CoBank.
SECTION 6.08. Prepayment. While any Default or Event of Default shall have occurred
and be continuing, prepay, directly or indirectly, any debt (other than debt to CoBank).
(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 thereto.
(H) Purchase money Liens on trucks and other rolling stock and the proceeds thereof
to secure debt permitted under Section 6.02(E) hereof.
SECTION 5.10. Water Rights, Title to Property, Etc. (A) Obtain and maintain walter rights
in such amounts, priorities and qualities as are necessary at all times to meet the needs of its customers;
(B) obtain and maintain title to, valid leasehold interests in, or other valid interests (including easements,
licenses and servitudes) in, all real property on which all water wells, reservoirs, water and wastewater
treatment plants, and warehouse and storage facilities are located; (C) keep all water rights and discharge
(D) Annual Budgets. As soon as available, but in no event more than 90 days after
the beginning of each fiscal year of the Company, an annual budget and forecast of operations and capital
expenditures for the Company for such year, which budget must be in form and content reasonably
acceptable to CoBank.
SECTION 5.03. Insurance. Maintain insurance with financially sound and reputable
insurance companies or associations reasonably acceptable to CoBank in such amounts and covering
such risks as are usually carried by companies engaged in the same business and similarly situated, and
make such increases in the amounts or coverage thereof as CoBank may from time to time require.
Without limiting the foregoing, in the event any property of the Company is located in a flood zone, then
reasonable and realistic, and no fact has come to light, and no event has occurred, which would cause any
material assumption made therein to not be reasonable or realistic.
SECTION 4.08. Compliance with Law. All of the Company’s properties and all of its
operations, are in compliance in ail material respects with all Laws. Without limiting the foregoing, all
property owned or leased by the Company, all property proposed to be acquired with the proceeds of the
Promissory Note and Supplement, and all operations conducted thereon on all such property, are in
compliance in al! material respects with all Laws relating to the environment
satisfied al! conditions and requirements set forth in the Promissory Note and Supplement relating to that
loan.
ARTICLE 4
REPRESENTATIONS AND WARRANTIES
To induce CoBank to enter into and make loans under each Promissory Note and Supplement,
the Company represents and warrants that:
