C153770 Contract 2

• Contract/PO #: C153770
• Contractor Name: Summit Reservoir and Irrigation Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Bill Number: SB 97-008
• Loan Projects - Doc Type: Contract Documents

Resolutions of the Shareholders of the

SUMMIT RESERVOIR AND IRRIGATION COMPANY

The Shareholders of the Summit Irrigation and Reservoir Company (UCompany"), at a
Shareholders' meeting held MAl.( II :z {TO;;L at Dolores, Colorado, adopted the following
resolutions concerning an increase of $100,000 in the existing $200,000 loan from the Colorado
Water Conservation Board (CWCB), for a loan total amount of $300,000, or such amount, more
or less, as may be needed by the Company and available from the CWCB for up to 75% of the
actual project costs, for the purpose of rehabilitation of the Company's system including the Dam
on Summit Reservoir and the various collection and distribution canals.

At said meeting, the Shareholders charged that these resolutions are irrepealable during
the term of the loan and, pursuant to the Company's bylaws, authorized the Board of
Directors and officers as follows:

1. RESOLVED, to enter into an amended contract and promissory note with the Colorado
Water Conservation Board for a loan in the amount of up to $300,000, or such actual
amount, more or less, as may be needed by the Company and available from the CWCB,
and to comply with all the terms of the amended loan contract, and

2. RESOLVED, to make and levy assessments from the shareholders in an amount sufficient to
pay the annual amounts due under the Amended Loan Contract, including, but not limited to,
annual loan payments and deposits to the reserve debt service fund, and

3. RESOLVED, to place assessment revenues pledged to make annual loan payments in a
special account separate and apart from other COMPANY revenues, and

4. RESOLVED, to make the annual payments in accordance with the loan contract, and

5. RESOLVED, to make annual deposits to a reserve debt service fund in accordance with the
loan contract, and

6. RESOLVED, to obtain certificates of deposit to serve as collateral in the amount of one
annual loan payment ($X) as security for the loan, and to execute an assignment of
certifi.e.ate of deposit in accordance with the loan contract, and

7. RESOLVED, to execute a Security Agreement to secure the revenues to repay the loan, and

8. RESOLVED, to take such other actions and to execute such other documents as may be
necessary to consummate and implement the loan.

CERTIFICATION

THE UNDERSIGNED, RESPECTIVELY, THE PRESIDENT AND SECRETARY OF THE COMPANY, HEREBY CERTIFY
THAT THE FOREGOING ARE TRUE AND CORRECT COPIES OF RESOLUTIONS DULY ADOPTED AT A MEETING OF THE
COMPANY'S SHAREHOLDERS DULY CALLED AND HELD AS ABOVE RECITED, PURSUANT TO THE COMPANY'S
BYLAWS, AND THAT SAID RESOLUTIONS HAVE NOT BEEN AMENDED OR RESCINDED.

GIVEN UNDER OUR HANDS AND THE SEAL OF THE COMPANY THE / i{ Y OF lnft~ , 200~

(SEAL)

By

ATTEST:

By I /
David V. Sanford, Secreta

Appendix 1 a to Contract C153770 Amendment No.1