LPPD000423

• Contract/PO #: C150133
• Contractor Name: Low Line Ditch Company, The
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: MC3
• Loan Projects - Doc Type: Contract Documents

RESOLUTIONS OF THE BOARD OF DIRECTORS

OF THE Low LINE DITCH COMPANY

The Soard of Directors of The Low Line Ditch Company (Company), a meeting held March 4, 2003,
at Sterling, Colorado, adopted the following resolutions concerning a secured loan from the State of
Colorado Water Conservation Soard (CWCS), for the purpose of construction of a recharge project to
augment existing wells in the amount of $160,000 or such actual amount, more or less, as may be
needed by the Company and available from the CWCS in addition to the CWCS loan origination fee
of 1 % of the loan amount.
At said meeting, the Soard charged that these resolutions are irrepealable during the term of the
loan and, pursuant to the Company's bylaws, authorized the President and Corporate Secretary,
RESOLVED as follows.
2. to enter into and comply with the terms of a contract with the Colorado Water Conservation Board
for a loan in the amount of $160,000, or such actual amount, more or less, as needed to finance
the project costs, plus the CWCS loan origination fee of 1 %, and
3. to levy and collect assessments from the shareholders in an amount sufficient to pay the annual
amounts due under the Loan Contract, and to pledge assessment revenues and the Company's
right to receive said revenues for repayment of the loan, and
4. to place said pledged revenues in a special account separate and apart from other COMPANY
revenues, and
5. to make the annual payments required by the promissory note and to make annual deposits to a
debt service reserve fund, and
6. to pledge the recharge project, consisting of the well pump and equipment, and easements to the
four ponds and well, as collateral for the loan and execute all documents, including a security
agreement and deed of trust, necessary to convey a security interest in said property to the
CWCS,

7. to execute all documents as required by the loan contract, including, but not limited to, a Security
Agreement and a Promissory Note, and
8. to take such other actions and to execute such other documents as may be necessary to
consummate and implement the loan.
CERTIFICATION
THE UNDERSIGNED, THE PRESIDENT AND THE CORPORATE SECRETARY HEREBY CERTIFY THAT THE
FOREGOING ARE TRUE AND CORRECT COPIES OF RESOLUTIONS DULY ADOPTED AT A MEETING OF THE
COMPANY'S SOARD OF DIRECTORS 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 DAY OF MARCH 2003.

(SEAL)

Sy L0 ""'-- ~
Don Schell, President

ATTEST:

Sy~-;,_ 0 ~c>::?
Steven J. KaISer, Corporate Secretary

Appendix 3b to Loan Contract C150133