LPPD000468

• Contract/PO #: C153747
• Contractor Name: Consolidated Extension Canal Company
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

DEBTOR:

The Consolidated Extension Canal Company
clo Public Service Company of Colorado
attn: Don Halffield or Virginia Trujillo
550 15th Street, Suite 900
Denver, CO 80202-4256

FED TAX ID # 84-0176965

SECURED PARTY:

STATE OF COLORADO for the use and benefit of the
Department of Natural Resources, Colorado Water Conservation
1313 Sherman Street, Room 721
Denver, CO 80203

DEBTOR, for consideration, hereby grants to SECURED PARTY a se
all additions, accessions and substitutions thereto or therefor, h
derived from special stockholder assessments, as d ed i
#C153747.

foil g property and any and
OLlATERAL: All revenues
enues Provisions in Contract

COLLATERAL CLASSIFICATION: CONTRACT RIGHTS & OTHE

To secure payment of the indebtedness evidence
#C153747 ("CONTRACT") between the above named p
follows: $300,000 in accordance with the terms specified
all principal and interest are paid.in full.

in P issory Note Provisions of Loan Contract
rewith, payable to the SECURED PARTY, or order, as
romissory Note Provisions of said Contract, or until

DEBTOR EXPRESSLY WARRANTS AND COVENANTS:

1. That except for the security interest granted hereby DEBTOR is, or to the extent that this agreement states that the
COLlATERAL is to be acquired after the date hereof, will be, the owner of the COLlATERAL free from any adverse
lien, security interest or encumbrances; and that DEBTOR will defend the COLLATERAL against all claims and
demands of all persons at anytime claiming the same or any interest therein.

2. That the execution and delivery of this agreement by DEBTOR will not violate any law or agreement governing
DEBTOR or to which DEBTOR is a party.

3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not prohibit any term or
condition of this agreement.

4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its representations
herein, DEBTOR shall be estopped from asserting for any reason that it is not authorized to grant a security
interest in the COLLATERAL pursuant to the terms of this agreement.

5. To pay all taxes and assessments of every nature which may be levied or assessed agaihstthe COLLATERAL.

6. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the COLLATERAL and
not to permit the same to be attached or replevined.

7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations, ordinances,
articles of incorporation or by-laws.

UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps the

Appendix B to Contract #C153747