C150024 Contract

• Contract/PO #: C150024
• Contractor Name: Sterling Irrigation Company
• Contract Type: Loan
• Water District: 64
• County: Logan
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Contract Documents

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8. Attorney's Opinion Letter. Prior to the execution of this contract by the STATE, the
BORROWER shall submit to the STATE a letter from its attorney stating that it is the
attorney's opinion that the person 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; that the BORROWER'S stockholders and board of directors have validly adopted
resolutions approving this contract; that there are no provisions in the BORROWER'S articles
of incorporation or by-laws or any state or local law that prevent this'contract from binding
the BORROWER; and that the contract will be valid and binding against the BORROWER if
entered into by the STATE.

9. Promissory Note Provisions. The Promissory Note setting forth the terms of repayment
and evidencing this loan in the amount of $318,583 at an interest rate of 3.75% per annum
for a term of 30 years is attached as Appendix 2 and incorporated herein. '

a. Interest During Construction. As the loan funds are disbursed by the STATE to the
BORROWER during construction, interest shall accrue at the rate of 3,75%. The STATE
shall calcuiate the amount of the interest accrued during construction and the
BORROWER shall repay that amount to the STATE either within ten (10) days after the
date the STATE determines, that the PROJECT has been substantially completed, or, at
the STATE'S discretion, said interest 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 reduce
the final loan amount and the amount of the annual loan payment remain the same.
If the final loan amount is less 90% of the AUTHORIZED LOAN AMOUNT, the STATE may
apply those funds to reduce final loan amount with the BORROWER'S consent, or the
State and the Borrower shall execute a REVISION LETTER, attached hereto as
Appendix 3 and incorporated herein, which will establish the final loan amount and
amend or replace the loan documents that reflect the final loan amount, including the
Promissory Note, Security Agreement, and Assignment of Certificate of Deposit.

10. Warranties.

a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms
of this contract and by the BORROWER'S representation herein, the BORROWER shall be
estopped from asserting for any reason that it is not authorized or obligated to repay
the loan money to the STATE as required by this contract.

b. The BORROWER warrants that it has full power and authority to enter into this contract.
The execution and delivery of this contract and the perfbrmance and observation of
its terms, conditions and obligations have been duly authorized by all necessary
actions of the BORROWER.

c. The BORROWER warrants that it has not employed or retained any company or person,
other than a bona fide employee working solely for the BORROWER, to solicit or secure
this contract and has not paid or agreed to pay any person, company, corporation,
individual, or firm, other than a bona fide employee, any fee, commission, percentage,
gift, or other consideration contingent upon or resulting from the award or the making
of this contract.

Sterling Irrigation Company

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Loan Contract