LPPD000240

• Contract/PO #: C150177
• Contractor Name: Smart Brothers, Inc.
• Contract Type: Loan
• Water District: 64
• County: Logan
• Loan Projects - Doc Type: Contract Documents

~, .

DATE:
GRANTOR:
BENEFICIARY:
COUNTY:
PRINCIPAL LOAN AMOUNT:
LOAN CONTRACT:
TERMS OF REPAYMENT:
COLLATERAL:

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1 of 4 R 21.00 1)0.00 N 0.00 Logan Count.y CO

Deed of Trust

December 1, 2004
SMART BROTHERS, INC.
COLORADO WATER CONSERVATION BOARD
LOGAN
$233,000
Loan Contract No. C150177, dated December 1, 2004
2.5% per annum for 30 years
Two items of pledged property:

1) An undividedone-hundred percent interest in property consisting of 158 acres located in the
SE ~ of Section 16, 6N, 53W, as described in the attached legal description, including the
irrigation well (Permit #8785 & Water Court Case No. W1752) and sprinkler irrigation
equipment, 10 district acres within the Logan Irrigation District, and the property's pro-rata
interest in the Smart Brothers, Inc. Plan of Augmentation (#W8686-77); and

2) A 12% interest in those augmentation water benefits that are (1) generated by the Smart
Brothers, Inc. Recharge Project, the subject of this Loan Contract, and (2) authorized under
the pending Logan Well Users. Inc. Plan of Augmentation (Case No. 03CW195) and/or the
pending Hessler Farms, Inc. Plan of Augmentation (Case No. 01 CW303), as may be
amended to reflect the operation of the Smart Brothers, Inc. Recharge Project; except that the
annual augmentation water benefits conveyed shall not exceed the actual the amount of
augmentatioh water needed to fUlly cover the depletions of the well described in Paragraph 1
above. All operation and maintenance expenses for the Smart Brothers, Inc. Recharge
Project shall be the responsibility of Smart Brothers. Inc.

This indenture is between the Grantor, and the Public Trustee of the above referenced
COUNTY, State of Colorado ("PUBLIC TRUSTEE").
FACTUAL RECITALS
1. The GRANTOR has executed a Promissory Note of even date and amount, set forth in the LOAN
CONTRACT, for a loan in the PRINCIPAL LOAN AMOUNT to be repaid to the BENEFICIARY, with TERMS
OF REPAYMENT and in accordance with the Promissory Note or until loan is paid in full.
2. The GRANTOR is desirous of securing payment of the PRINCIPAL LOAN AMOUNT and interest of said
Promissory Note to the BENEFICIARY.
, The GRANTOR, in consideration of the premises and for the purpose aforesaid, does hereby
grant, bargain, sell and convey unto the said PUBLIC TRUSTEE in trust forever, the above described
COLLATERAL.
To have and to hold the same, together with all appurtenances, in trust nevertheless, that in
case of default in the payment of said Promissory Note, or any part thereof, or the interest thereon,
or in the performance of any covenants hereinafter set forth or in said Promissory Note or LOAN
CONTRACT, then upon the BENEFICIARY filing notice of election and demand for sale, said PUBLIC
TRUSTEE, after advertising notice of said sale weekly for not less than four weeks in some newspaper
of general circulation in said COUNTY, shall sell said COLLATERAL in the manner provided by law in
effect at the time of filing said notice and demand, at public auction for cash, at any proper place

Appendix 5 to toan Contract C150177