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ti <br />NOW THEREFORE, it is hereby agreed that <br />1. Consideration for this Amendment to the ORIGINAL CONTRACT consists of the payments <br />that shall be made pursuant to this Amendment and the ORIGINAL CONTRACT and the <br />promises and agreements herein set forth. <br />2. It is expressly agreed by the parties that this Amendment is supplemental to the <br />ORIGINAL CONTRACT and all terms, conditions, and provisions thereof, unless <br />specifically modified herein, are to apply to this Amendment as though they were <br />expressly rewritten, incorporated, and included herein. <br />3. The STATE agrees that it shall loan the BORROWER an additional $4,333,000 at an interest <br />rate of 5.50% per annum for a term of 10 years, in addition to the original loan amount of <br />$16,300,000 at an interest rate of 4.85% per annum for a term of 10 years, to be used to <br />finance up to 75% Of PROJECT COStS. <br />4. The CONTRACTOR'S Board of Directors has adopted resolutions, irrepealable for the <br />term of this loan, authorizing the CONTRACTOR to enter into this contract amendment to <br />borrow the additional $4,333,000, to make and levy water service rates sufficient to <br />pay the annual loan payments, to pledge said water service rates for repayment of the <br />loan, and to pledge additional c e I e loan and execute documents <br />necessary to convey a security i property to the CWCB. Said <br />resolutions are attached hereto as A c ment A. <br />5. Prior to the execution of this m y t e ~1AtCB, the CONTRACTOR shall <br />submit to the CWCB a letter fro tte tatmg that it is the attorney's opinion <br />that (1) the person signing for t e CONTRACTOR was duly elected or appointed and <br />has authority to sign such documents on behalf of the CONTRACTOR and to bind the <br />CONTRACTOR; (2) the CONTRACTOR'S board of directors has validly adopted <br />resolutions approving this Amendment; (3) there are no provisions in the <br />CONTRACTOR'S articles of incorporation or bylaws or any state or local law that <br />prevent this Amendment from binding the CONTRACTOR; and (4) this Amendment will <br />be valid and binding against the CONTRACTOR if entered into by the CWCB. <br />6. The CONTRACTOR agrees that it shall execute the following documents, all of which <br />shall set forth the loan amount of $4,333,000: a Promissory Note, attached as <br />Attachment B and incorporated herein, which shall be in addition to the Promissory <br />Note in the amount of $16,300,000 dated April 26, 2000 (Attachment 2 to the <br />ORIGINAL CONTRACT); a Security Agreement, attached hereto as Attachment C and <br />incorporated herein, to secure the Contractor's pledge of water service revenues for <br />the purpose of repaying the additional loan amount, and a Deed of Trust, attached <br />hereto as Attachment D and incorporated herein, to convey to the CWCB an <br />undivided interest in certain property as described in said Deed of Trust. <br />7. The parties agree that the ORIGINAL CONTRACT, is and shall be modified, altered, and <br />changed in the following respects only: <br />a. Paragraph A.9, Promissory Note Provisions, shall be amended to read as follows: <br />The two Promissory Notes setting forth the terms of repayment and evidencing <br />this loan are as follows: the first, dated April 26, 2000, in the amount of <br />The Consolidated Mutual Water Company Page 2 of 4 Contract Amendment No. 2 <br />