C150004 Contract

• Contract/PO #: C150004
• Contractor Name: Fort Morgan, City of & Fort Morgan Water Works and Distribution Enterprise
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: HB98-1189
• Loan Projects - Doc Type: Contract Documents

Allotment Contracts, and in the CITY's/BoRROWER'S Allotment Contract Rights, in
accordance with the Collateral provisions of this contract.

Said ordinances are attached hereto as Appendix A and incorporated herein.

7, Attorney's opinion letter. Prior to the execution of this contract by the STATE, the CITY
and the BORROWER shall submit to the STATE an opinion from Red Book bond counsel that
the contract has been duly executed by officers of the CITY and the BORROWER who are
duly elected or appointed and are authorized to execute the contract and to bind the CITY
and the BORROWER; that the ordinances of the CITY and the BORROWER authorizing the
execution and delivery of the contract were duly adopted by the governing bodies of the
CITY and the BORROWER; that there are no provisions in the Colorado Constitution or any
other state or local law that prevent this contract from binding the CITY and the BORROWER;
and that the contract will be valid and binding against the CITY and the BORROWER if entered
into by the STATE.

6. Promissory Note Provisions, The Promissory Note setting forth the terms of
repayment and evidencing this obligation in the amount of up to $8,000,000 at an interest
rate of 4% per annum for a term of thirty (30) years is attached as Appendix Band
incorporated herein.

a. Interest During Construction. As the loan funds are disbursed by the STATE to the
BORROWER during PROJECT completion, interest shall accrue at the rate of 4% per
annum. The amount of the interest accrued during PROJECT completion shall be
calculated by the STATE and the BORROWER shall repay that amount to the STATE
either within ten (10) days after the date the STATE notifies the Borrower of the
amount due, or, at the STATE'S discretion, the amount shall be deducted from the final
disbursement of loan funds that the STATE makes to the BORROWER.

b. Final loan amount. In the event that the final loan amount is less than the authorized
loan amount, the STATE shall apply the remaining loan funds to prepayment of the
loan if the remaining funds equal less than 10% of the authorized loan amount. If the
remaining loan funds equal more than 10% of the authorized loan amount, the STATE
may apply those funds to prepayment of the loan with the BORROWER'S consent, or
the parties may amend the contract to establish the final loan amount and reamortize
the annual payment. When such remaining loan funds are applied to prepayment of
the loan, the annual loan payment amount shall remain the same, resulting in a
reduced term of repayment.

9. Documentation of 1997 Bond retirement. Within fifteen (15) working days of receipt of
the loan funds, the BORROWER shall provide the STATE with documentation of the
application of all loan funds to retire a portion of the 1997 Bonds.

10. Warranties. The BORROWER and the CITY warrant the following'.

a. By acceptance of the loan money pursuant to the terms of this contract and by its
representations herein, the BORROWER shall be estopped from asserting for any reason
that the BORROWER is not authorized or obligated to repay the loan money to the STATE
as required by this contract.

b. Both the BORROWER and the CITY have full power and authority to enter into this
contract. The execution and delivery of this contract and the performance and
observance of its terms, conditions and obligations have been duly authorized by all
necessary actions of the BORROWER and the CITY.

City of Fort Morgan, Colorado &
City of Fort Morgan, Colorado, Waler Works and Distribution Enterprise

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