C150082 Contract

• Contract/PO #: C150082
• Contractor Name: Consolidated Home Supply Ditch and Reservoir Company, The
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

RESOLUTIONS OF THE SHAREHOLDERS
OF THE CONSOLIDATED HOME SUPPLY DITCH AND RESERVOIR COMPANY

The Shareholders of The Consolidated Home Supply Ditch and Reservoir Company (Company), at
a Shareholders' meeting held December 10, 2001, at Johnson's Comer Truck Stop & Cafe, 2842
S.E. Frontage Road, Loveland, Colorado, adopted the following resolutions concerning a secured
loan from the State of Colorado Water Conservation Board (CWCB), for the purpose of
rehabilitation of the Mariano (Boedecker) Reservoir Dam, in the amount of $943,000 or such actual
amount, more or less, as may be needed by the Company and available from the CWCB for up to
90% of the actual project costs.

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,
RESOLVED as follows:

1. To enter into and complywith the terms of a contract with the Colorado Water Conservation
Board for a loan in the amount of $943,000, or such actual amount, more or less, as needed to
finance up to 90% of the project costs, and

2. 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

3. To place said pledged revenues in a special account separate and apart from other COMPANY
revenues, and

4. To make the annual payments required by the promissory note and to make annual deposits to
a debt service reserve fund, and

5. To execute a deed of trust to convey a security interest to the CWCB in certain property owned
by the Company, and

6. To execute all documents as required by the loan contract, including, but not limited to, a
Security Agreement and a Promissory Note, and

7. 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 1 DTH DAY OF DECEMBER 2001.

(SEAL)
ATTEST:
By AdaJ<~~~
Corporate Secr ry
Appendix 3 to Loan Contract C150082

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By~~$~ ~ " /. -
Kenneth M. M?,lam. President