C150052 Contract

• Contract/PO #: C150052
• Contractor Name: Tunnel Water Company, The
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Bill Number: EIA
• Loan Projects - Doc Type: Contract Documents

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RESOLUTIONS OF THE BOARD OF DIRECTORS
OF THE TUNNEL WATER COMP ANY

The Board of Directors of The Tunnel Water Company (Company), at a Board of Directors'
meeting held December 14,2000, at Fort CoIlins, Colorado, adopted the following resolutions
concerning a secured loan from the State of Colorado Water Conservation Board (State), for the
purpose of emergency rehabilitation of a portion of the Laramie-Poudre Tunnel, in the amount of
$1,600,000 or such actual amount, more or less, as may be needed by the Company and available
from the State for up to 90% of the actual project costs.

At said meeting, upon motion, second and unanimous vote, it was RESOLVED:

That Fred Walker, the President of the Company and Dana Parker, Secretary of the Company, on
behalf of the Company, are authorized as follows:

I. to enter into and comply with the terms of a contract with the Colorado Water
Conservation Board for a loan in the amount of$1,600,000, or such actual amount, more
or less, as needed to finance up to 90% of 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 fund, and

5. to pledge certain real and personal property of the Company (including the water rights
known and decreed as the Laramie River System of the Tunnel Water Company and an
easement for the Laramie-Poudre Tunnel) as collateral for the loan and execute
documents necessary to convey a security interest in said property to the CWCB, and

6. to execute all documents as required by the loan contract, including, but not limited to, a
Security Agreement, Deed of Trust, Assignment of Deposit Account As Security, 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.

Lastly, upon motion, second and unanimous 'vote it was RESOLVED that the above resolutions
are irrepealable during the term of the loan.

Appendix 1 b to Loan Contract C150052