SEC Contract Filing

Filing Date: 2020-04-30

Document Content:
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<TYPE>EX-10
<SEQUENCE>5
<FILENAME>ex10-4.htm
<DESCRIPTION>2020B LOAN NOTE
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 <div style="font-size: 12pt; font-weight: bold;">REGISTERED</div>
 <div><font style="font-size: 12pt; font-weight: bold;">R-1</font><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 396pt">&#160;</font><font style="font-size: 12pt; font-weight: bold;">$1,330,000</font></div>
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 <div style="text-align: center; font-size: 12pt; font-weight: bold;">ARTESIAN WATER COMPANY, INC.</div>
 <div style="text-align: center; font-size: 12pt; font-weight: bold;">GENERAL OBLIGATION NOTE</div>
 <div style="text-align: center; font-size: 12pt; font-weight: bold;">(WILMINGTON MANOR WATER MAIN RENEWAL PROJECT)</div>
 <div style="text-align: center; font-size: 12pt; font-weight: bold;">SERIES 2020B-SRF</div>
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 <div style="text-indent: 274.5pt; font-size: 12pt;">Final Maturity Date: November 1, 2041</div>
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 <div style="font-size: 12pt;">One Million Three Hundred Thirty Thousand Dollars ($1,330,000)</div>
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 <div style="text-align: justify; text-indent: 36pt; font-size: 12pt;">ARTESIAN WATER COMPANY, INC., a corporation of the State of Delaware (hereinafter referred to as the "Company"), for value received
 hereby acknowledges itself indebted and promises to pay to the DELAWARE DRINKING WATER STATE REVOLVING FUND, or to any other registered owner hereof, the principal sum of ONE MILLION THREE HUNDRED THIRTY THOUSAND DOLLARS ($1,330,000) or so much
 thereof as shall actually be advanced to the Company by the Delaware Drinking Water State Revolving Fund acting by and through Delaware Department of Health &amp; Social Services, Division of Public Health (the "Department") pursuant to the Financing
 Agreement dated as of April 28, 2020 (the "Financing Agreement") between the Company and the Department.</div>
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 <div style="text-align: justify; text-indent: 36pt; font-size: 12pt;">This Note is being issued in order to provide funds to:&#160; (i) finance the cost of installing approximately 3,535 linear feet of ductile iron water main in the Wilmington Manor development, as more fully described in <u>Exhibit
 A</u> to the Financing Agreement and (ii) pay certain administrative costs and costs of issuing this Note (collectively, the Project).&#160; Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the
 Financing Agreement.</div>
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 <div style="text-align: justify; text-indent: 36pt; font-size: 12pt;">The Company shall pay to the Department, on the principal amount drawn down and outstanding hereunder from the date(s) drawn, interest
 at the rate of 0.5935% per annum and an administrative fee at the rate of 0.5935% per annum (collectively, interest and the administrative fee are referred to herein as "Fee").&#160; Such Fee shall accrue starting on the date hereof (the "Closing")
 through the Final Maturity Date or prepayment in full hereof.&#160; The Company shall pay Fee hereunder initially on November 1, 2020 and semiannually thereafter on each May 1 and November 1 (each, a "Payment Date").&#160; The Company shall pay only Fee and no
 principal during the period commencing with the Closing through and including the Payment Date following the date on which the Project is actually completed (currently expected to be June 30, 2021 as of the Closing).</div>
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 <div style="text-align: justify; text-indent: 36pt; font-size: 12pt;">The Company expects to complete the Project by June 30, 2021 (herein referred to as the &#8220;<font style="font-weight: bold;">Amortization Start Date</font>&#8221;). This projected date of completion of the Project is subject to an extension if such extension is mutually agreed upon by the Department and the Borrower.</div>
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 <div style="text-align: justify;"><font id="TRGRRTFtoHTMLTab" style="display: inline-block; text-indent: 0px; font-size: 1px; width: 36pt">&#160;</font><font style="font-size: 12pt;">After the Amortization Start
 Date, Fee and principal shall be payable on the outstanding principal amounts drawn hereunder semiannually, on each Payment Date, commencing on the second Payment Date following the Amortization Start Date and continuing on each of the next 39
 following Payment Dates, in an amount sufficient to amortize all principal drawn with substantially equal semiannual payments of principal a