LPPD000446

• Contract/PO #: C150098
• Contractor Name: Lake Henry Reservoir Company
• Contract Type: Loan
• Water District: 17
• County: Crowley
• Bill Number: HB 02-1152
• Loan Projects - Doc Type: Contract Documents

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RESOLUTIONS OF THE STOCKHOLDERS
OF THE lAKE; HENRY RESERVOIR COMPANY

The Stockholders of The Lake Henry Reservoir Company (Company), at a Stockholders' meeting
held January 28, 2002, at Sugar City, Colorado, adopted the following resolutions conceming a
secured loan from the State of Colorado Water Conservation Board (CWCB), for the purpose of
rehabilitation of the Lake Henry Reservoir Dam, in the amount of $490,000 or such actual a!Tlount,
more or less, as may be needed by the Company and available from the CWCB for up to 75% of
the actual project costs.

At said meeting, the Stockholders 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 comply with the terms of a contract with the Colorado Water Conservation
Board for a loan in the amount of $490,000, or such actual amount, more or less, as needed to
finance up to 75% of the project costs, and

2. To levy and collect assessments from the Stockholders 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 STOCKHOLDERS 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 ANDlHESEAL OFlHE ~ANYlHE ~y OF JANU.ARY 2002.

, By _ 1I!.1J!.
( SEA L ) Robert 111 Robler, President

ATTEST:

By
Allen L. Ringle, Corporate

Appendix 3a to Loan Contract C150098