C150124 Contract

• Contract/PO #: C150124
• Contractor Name: Shultz Farm, Inc.
• Contract Type: Loan
• Water District: 0
• County: Weld
• Bill Number: MC3
• Loan Projects - Doc Type: Contract Documents

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final disbursement of loan funds that the CWCB makes to the BORROWER.

3. Return of Unused Loan Funds. Any loan funds disbursed but not expended for the
PROJECT in accordance with the terms of this contract shall be remitted to the CWCB
within 30 calendar days from notification from the CWCB of either (1) completion of the
PROJECT or (2) upon the determination by the CWCB that the PROJECT will not be
completed.

4. BORROWER'S Authority To Contract. The BORROWER warrants that it has full power
and authority to enter into this contract. The execution and delivery of this contract and
the performance and observation of its terms, conditions and obligations have been
duly authorized by all necessary actions of the BORROWER. The BORROWER'S
authorizing resolution(s) are attached as Appendix 3 and incorporated herein.

5. Attorney's Opinion Letter. Prior to the execution of this contract by the CWCB, the
BORROWER shall submit to the CWCB a letter from its attorney stating that it is the
attorney's opinion that

a. the contract has been duly executed by officers of the BORROWER who are duly
elected or appointed and are authorized to execute the contract and to bind the
BORROWER;

b. the resolutions of the BORROWER authorizing the execution and delivery of the
contract were 'duly adopted by the BORROWER'S board of directors and/or
stockholders

c. there are no provisions in the BORROWER'S articles of incorporation or bylaws or any
state or local law that prevent this contract from binding the BORROWER; and

d. the contract will be valid and binding against the BORROWER if entered into by the
CWCB.

6. Collateral. The collateral for this loan is described in Section 5 (Collateral) of the
Project Summary,' and secured by the instrument(s) attached hereto as Appendix 4
and incorporated herein.

a. The BORROWER shall not sell, convey, assign, grant, transfer, mortgage, pledge,
encumber, or otherwise dispose of the collateral for this loan so long as any of
the principal, accrued interest, and late charges, if any, on this loan remain
unpaid, without the prior written concurrence of the CWCB. In the event of any
such sale, transfer or encumbrance without the CWCB's written concurrence, the
CWCB may at- any time thereafter declare all outstanding principal, interest, and
late charges, if any, on this loan immediately due and payable.

7. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
principal, all accrued interest, and late charges, if any, as specified in the Promissory
Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
and interest in and to the collateral pledged to assure repayment of this loan.

8. Warranties.

a. The BORROWER warrants that, by acceptance of the loan under this contract and by
its representations herein, the BORROWER shall be estopped from asserting for any
reason that it is not authorized or obligated to repay the loan to the CWCB as

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