PROJC01885 ‎(2)‎

• Contract/PO #: C150258
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Loan Projects - Doc Type: Contract Documents

RESOLUTION OF THE BOARD OF DIRECTORS OF THE
LOWER ARKANSAS WATER MANAGEMENT ASSOCIATION REGARDING A
LOAN FROM THE COLORADO W ATER CONSERVATION BOARD FOR THE
PURCHASE OF ONE-HALF OF THE KEESEE WATER RIGHTS

Concerning a loan in the amount of up to $2,493,722.00 from the State of Colorado
Water Conservation Board (hereinafter referred to as the CWCB), for the purposes of purchasing
one-half of the Keesee water rights; the Lower Arkansas Water Management Association (hereinafter
referred to as the Association), at a meeting of the Board of Directors held December 13,2007 at 310
South 6th Street, Lamar, Colorado.

a. RESOLVED, that the Board of Directors hereby authorizes the purchase of
one-half of the Keesee water rights as further specified in the Water Rights
Option Agreement between the Association and Broyles Land & Water,
LLLP dated May 26,2005; and

b. RESOLVED, that the Board of Directors hereby authorizes the Association
to contract with the CWCB for this loan debt, and authorizes the President
and Secretary to pay the indebtedness on behalf of the Borrower; and

c. RESOLVED, that the Board of Directors hereby authorizes the Association
to levy assessment( s) sufficient to repay this loan pursuant to the terms of the
contract and to discharge this lawful indebtedness; and

d. RESOLVED, that the Board of Directors hereby authorizes the Association
to set aside this assessment revenue in a special fund separate and apart from
other Borrower revenues to assure payment of this revenue to the CWCB;
and

e. RESOLVED, that the Board of Directors hereby authorizes the Association
to execute a Promissory Note required by the CWCB, as specified in the
Promissory Note provisions of the contract; and

f. RESOLVED, that the Board ofDirectoTs hereby authorizes the Association
to execute a DCC Security Agreement required by the CWCB, as specified
in the Pledge of Property provisions of the contract; and

g. RESOLVED, that the Board of Directors hereby authorizes the Association
to execute deed(s) of trust required by the CWCB, as specified in the
Collateral provision ofthe contract.

APPENDIX 3 to Loan Contract C150258