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<br />$16,300,000 at an interest rate of 4.85% per annum for a term of 10 years is
<br />attached as Attachment 2 and incorporated herein, and the second, dated
<br />September 21, 2001, in the amount of $4,333,000 at an interest rate of 5.5% for a
<br />term of 10 years is attached as Attachment B incorporated herein.
<br />
<br />b. The second line of Paragraph A.9.a, Interest During Construction, shall be
<br />amended to read as follows: ..... BORROWER during construction, interest shall
<br />accrue at the rate of 4.75% on the first $10,000,000 disbursed, at the rate of
<br />5.00% on the second $6,300,000 disbursed, and at a rate of 5.5% on the
<br />remaining $4,333,000. The CWCB shall ..."
<br />
<br />c. Paragraph A.11, Collateral, is modified by the addition of the following:
<br />
<br />Part of the security provided for the additional $4,333,000 loan amount, as
<br />evidenced by the executed Deed of Trust attached as Attachment 0 and
<br />incorporated herein, shall be an undivided one hundred percent (100%) interest in
<br />Fairmount Reservoir, as more particularly described in the attached Deed of
<br />Trust, hereafter referred to as the Collateral. Upon full repayment to the CWCB of
<br />the Promissory Note in the amount of $4,333,000, the CWCB shall release its
<br />interest in Fairmount Reservoir as set forth in Paragraph B.3 below.
<br />
<br />d. Paragraph A.12.b is amended to remove the requirement for an Assignment of
<br />Deposit Account as Security upon completion of the Project, so lines 4 through 6
<br />are revised to read as follows: "hereto as Appendix F incorporated herein, prior to
<br />the disbursement of any loan funds. The Borrower acknnwlF!rf[JF!<=: that the ..
<br />
<br />e. Paragraph A.14.c is revised to read as follows:
<br />
<br />"exercise its right under the Promissory Notes, Security Agreements, and Deeds of
<br />Trust,"
<br />
<br />f. Paragraph B.3, Release of Collateral, is modified by the addition of the following:
<br />
<br />Upon full repayment of the Promissory Note in the principal amount of $4,333,000
<br />by the Borrower, and so long as the Borrower is in substantial compliance with all
<br />of the obligations of this contract, including, but not limited to, being current on the
<br />annual payments due on the $16,300,000 Promissory Note and on deposits to the
<br />Borrower's debt service reserve fund, the CWCB shall execute a release of deed
<br />of trust to convey to the Borrower all of the CWCB's right, title, and interest in and
<br />to Fairmount Reservoir,and file a UCC-3 form with the Secretary of State to
<br />terminate all of the CWCB's rights in and to the revenues pledged to repay the
<br />$4,333,000 loan amount.
<br />
<br />7, Except for the SPECIAL PROVISIONS, in the event of any conflict, inconsistency,
<br />variance, or contradiction between the provisions of this Amendment and any of the
<br />provisions of the ORIGINAL CONTRACT, as amended, the provisions of this Amendment
<br />shall in all respects supersede, govern, and control. The SPECIAL PROVISIONS shall
<br />always be controlling over other provisions in the contract or amendments, The
<br />representations in the SPECIAL PROVISIONS concerning the absence of bribery or
<br />corrupt influences and personal interest of STATE employees are presently reaffirmed.
<br />
<br />8. Financial obligations of the state payable after the current fiscal year are contingent
<br />
<br />The Consolidated Mutual Water Company
<br />
<br />Page 3 014
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<br />Contract Amendment No.2
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