C150240 contract docs

• Contract/PO #: C150240
• Contractor Name: Bull Creek Reservoir, Canal & Power Company
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

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ORIGINAL CONTRACT and all terms, conditions, and provisions thereof, unless
specifically modified herein, are to apply to this Amendment as though they were
expressly rewritten, incorporated, and included herein.
3. The CWCB agrees that it shall loan the BoRROwER an additional loan amount of
$345,412 plus the 1% loan service fee for a loan amount of $1,801,630 to finance
Up t0 90% Of P�OJ@Ct COStS (ADDITIONAL LOAN AMOUNT�. Th@ t@1'CT1S fOf the ADDITIONAL
LoAN AnnoutvT are an interest rate of 2.5% per annum for a term of 30 years. The
BORROWER hereby agrees to repay the loan in accordance with the terms of the
OR��iNA� CotvT�cr as herein amended and the attached Promissory Note.
4. The BORROWER has adopted a resolution, irrepealable for the term of this loan,
authorizing the BORROWER t0 enter into this contract amendment to borrow the
ADDITIONAL LOAN AMOUNT, to establish and collect assessments sufficient to pay the
annual loan payments, to pledge said assessments for repayment of the loan, and to
execute documents necessary to convey a security interest in said assessments and
collateral to the CWCB. Said resolution is attached as Appendix A1.
5. Prior to the execution of this Amendment by the CWCB, the BoRROwER shall submit
to the CWCB a letter from its attorney stating that it is the attorney's opinion that (1)
the person(s) signing for the BoRROwER was duly elected or appointed and has
authority to sign such documents on behalf of the BORROWER and to bind the
BORROWER; (2) the BORROWER's governing body has validly adopted a resolution
approving this Amendment; (3) there are no provisions in the any state or local law
that prevent this Amendment from binding the BoRROwER; and (4) this Amendment
will be valid and binding against the BoRROwER if entered into by the CWCB.
6. The BoRROwER agrees that it shall execute the following documents, all of which shall
set forth the loan amount of $1,801,630 which includes the 1% loan service fee:
a. Promissory Note, attached as Appendix B1 and incorporated herein, which shall
replace and supersede the Promissory Note in the amount of $1,456,218 dated
September 21, 2009, attached to the ORi�iNa� CorvTRacT Amendment No. 1 as
Appendix B.
b. Amended Security Agreement, attached hereto as Appendix C1 and incorporated
herein, which shall supplement and operate in conjunction with the Security
Agreement dated June 18, 2007, and amended September 21, 2009, attached to
the ORIGINAL CONTRACT as Appendix 4.
c. Amended Deed of Trust, attached hereto as Appendix D1 and incorporated
herein, which shall supplement and operate in conjunction with the Deed of Trust
dated September 21, 2009, attaChed t0 the ORIGINAL CONTRACTAMENDMENT NO. 1
as Appendix D.
7. The parties agree that the ORi�itva� CorvTt�cT, is and shall be modified, altered, and
changed in the following respects only:
a. Appendix 1, Section 7, Additional Conditions & Contract Requirements, is revised
to add the following as subparagraph 5: Upon resolution of the pending litigation,
Borrower shall attempt in good faith to sell Reservoirs 1 and 2 or some other
combination of assets to maintain its annual assessments at a maximum of $125
per share. The CWCB shall have the right of first refusal to acquire any such
assets in exchange for a reduction of the Company's loan amount.
b. Appendix 1, Section 7, Additional Conditions & Contract Requirements, is also
revised to add the following as subparagraph 6: If the two mechanics liens and the
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