PROJC01825 ‎(2)‎

• Contract/PO #: C150234
• Contractor Name: Headgate 396 Lateral Corporation
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

RESOLUTIONS OF THE BOARD OF DIRECTORS

OF THE HEADGATE 396 LATERAL CORPORATION

The Boars' of Directors of J=j1e He9dgate 396 Lateral Corporation (Company), at a
meeting held ~ I:J.. 7 , 2007, at Cti~::kl~, Colorado, adopted the following resolutions
concerning a secured loan from the State of Colorado Water Conservation Board (CWCS), for
the purpose of construction of the a new pipeline to increase ditch efficiency and reduce salinity
impacts in the Colorado River, in the amount of $232,300 or such actual amount, more or less,
as may be needed by the Company and available from the CWCS including the CWCS loan
origination fee of 1 % of the loan amount.
At said meeting, the Board charged that these resolutions are irrepealable during the tenn
of the loan and, pursuant to the Company's bylaws, authorized the President and Corporate
Secretary, 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 $232,300, or such actual amount, more or less, as needed to
finance the project costs, including the CWCS loan origination fee of 1%, 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 toan, 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 pledge the Company's interest in the Project, including approximately 7,000 feet of pipeline
and associated access easements, as collateral for the loan and execute aU documents,
incfudinga security agreement and deed of trust, necessary to convey a security interest in said
property to the ewcs,
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, THE PRESIDENT AND THE CORPORATE SECRETARY HEREBY CERTIFY THAT THE
FOREGOING ARE TRUE AND cqRRECT COPIES OF RESOLUTIONS DULY ADOPTED AT A MEETING OF THE
COMPANY'S BOARD 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 THECOMPANYTH DAY OF 2007.

fS SA L)

By

ATTEST: ," " h
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~y:r )C;~j ~l~. ,0-,(/1 --K~.( i ,~
\}V}ftl, \)(\.c,,-;(J\/.QAJ';/, Secretary - Treasurer

Appendix 3b to Loan Contract C150234