C150118 Paid in Full Contract

• Contract/PO #: C150118
• Contractor Name: The Kern Resevoir and Ditch company
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

RESOLUTIONS OF THE BOARD OF DIRECTORS
OF KERN RESERVOIR AND DITCH COMPANY
The Board of Directors of the Kern Reservoir and Ditct 9pmpany (Company), a meeting
held t" , 2003, at 5 5p-rti,A va ' Colorado, adopted the following
resolutions co/cerning a secured loan from the State of Colorado Water Conservation Board
(CWCB), for the rehabilitation of Kern Reservoir, in the amount of $3,620,000 or such actual
amount, more or less, as may be needed by the Company and available from the CWCB.
At said meeting, the Board charged that these resolutions are irrepealable during the term 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 $3,620,000, or such actual amount, more or less, as
needed to finance the project costs and
2. to levy and collect assessments from the shareholders in an amount sufficient to pay the
annual amounts due under the Loan Contract, and to pledge assessment revenues and the
Company's right to receive said revenues for repayment of the loan, and
3. to place said pledged revenues in a special account separate and apart from other
COMPANY revenues, and
4. to make the annual payments required by the promissory note and to make annual deposits
to a debt service reserve fund, and
5. to execute a deed of trust to convey a security interest to the CWCB in the Company's Kern
Reservoir, and
6. to execute all documents as required by the loan contract, including, but not limited to, a
Security Agreement and a Promissory Note, and
7. to take such other actions and to execute such other documents as may be necessary to
consummate and implement the loan.
CERTIFICATION
THE UNDERSIGNED,JTHOPRESF9ENt AND THE CORPORATE SECRETARY HEREBY CERTIFY THAT THE
FOREGOING ARE TRUE AND CORRECTCOPIES OF RESOLUTIONS DULY ADOPTED AT A MEETING OF THE
COMPANY'S BOARD 'QF EIGTQRS .DULY CALLED AND HELD AS ABOVE RECITED, PURSUANT TO THE
COMPANY'S BYLAWS,,ANdfI-AT;'$AIt RESOLUTIONS HAVE NOT BEEN AMENDED OR RESCINDED.
GIVEN UNDER OUR HANDS AND THESEAL OF THE COMPANY THE DAY OF 2003.
( SEAL ) /
By �//4'
W. Wane Miller, President
AT T:
Vidt!
Julie Chester, Corporate Secretary
Appendix 3b to Loan Contract C150118