C150112 Contract

• Contract/PO #: C150112
• Contractor Name: Kern Reservoir and Ditch Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: MC3
• Loan Projects - Doc Type: Contract Documents

RESOLUTIONS OF THE SHAREHOL.DERS
OF KERN RESERVOIR AND DITCH COMPANY

The Shareholders of Kern Reservoir and Ditch Company (Company); at a Shareholders'
meeting held November 19, 2002, at Windsor, Colorado, adopted the following resolutions concerning
a secured loan from the State of Colorado Water Conservation Board (CWCB), for the purpose of
rehabilitation of the Kem Reservoir, in the amount of $1,000,000 or such actual amount, more or less,
as may be needed by the Company and available from the CWCS.

At said meeting, the Shareholders charged that these resolutions are irrepealable, during the
term of the loan and, pursuant to the Company's bylaws, authorized the Board of Directors and officers,
RESOLVED as follows:
, , ,
1. to enter into and comply with ihe terms of a contract with the Colorado Water Conservation Board
for a 'loan in the amount of $1,000,000, 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 exe",,!'" .. deed 9f trust to con'fcy a security il,t..,..::;[ to the CVvl;tlln the Kern Reservoir owned by
the Company, 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, RESPECTIVELY, THE PRESIDENT AND SECRETARY OF THE COMPANY, HEREBY CERTIFY
THAT THE FOREGOING ARE TRUE AND CORRECT COPIES OF RESOLUTIONS DULY ADOPTED AT A MEETING OF
THE COMPANY'S SHAREHOLDERS DULY CALLED AND HELD AS ABOVE RECITED, PURSUANT TO THE
COMPANY'S BYLAWS, AND THAT SAID RESOLUTIONS HAVE NOT SEEN AMENDED OR RESCINDED.

GIVEN UNDER OUR HANDS AND THE SEAL OF THE COMPANY THE 19th DAY OF November
2002.

(SEAL)

By

W ~~J<< lnJ/oV
, W. Wa e Miller, President

Appendix 3b to LoanContractC150112