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SECURITY AGREEMENT (PLEDGE OF REVENUES� DATE: DECEMBER 20, 2005 DEBTOR: Number Six Ditch Company SECURED PARTY: COLORADO WATER CONSERVATION BOARD PROMISSORY NOTE: $688,942, DATED DECEMBER 2O, 2005 TERMS OF REPAYMENT:. 2.50% PER ANNUM FOR 30 YEARS LOAN CONTRACT: C150205, DATED DECEMBER 2O, 2005 Cou�,TERa�: All revenues derived from assessment and all of DEBTOR's right to receive said assessment revenues to repay the loan as described in Pledge of Property provisions of the LoAtv CONTRACT, DEBTOR Funding Agreement entered into on January 3, 2006, and incorporated herein by reference, and Resolutions adopted on January 3, 2006 by the DEBTOR's Members and Board of Directors, attached as Appendix 3. To secure payment of the loan evidenced by the PROnnissoRY NoTE payable in accordance Wlth th@ TERMS OF REPAYMENT or until all principal, interest, and late charges, if any, are paid in full, the DEeTOR grants to SECURE� PaRnr a security interest in the above described Co��aTEw� and assigns to the Secured Party the DEBroR's right to enforce Paragraphs 6 and 15 of Debtor's Funding Agreement. This assignment shall be effective solely in the event of DEBTOR default in the payment of the loan as required by the Promissory Note. DEBTOR EXPRESSLY WARRANTS AND COVENANTS: 1. That except for the security interest granted hereby and any other security interests described in Section 5 of the Loan Contract Project Summary, DEBTOR is the owner of the Co��aTEEZa� free from any adverse lien, security interest or encumbrances; and that DEBTOR will defend the Co��aTEt�a� against all claims and demands of.all persons at any time claiming the same or any interest therein. 2. That the execution and delivery of this agreement by DEBroR will not violate any law or agreement governing DESTOR or to which DEBroR is a party. 3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the Co��a,TEFta,� and not to permit the same to be attached or replevined. 4. That by its acceptance of the loan money pursuant to the terms of the CotvTRacT 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 Co�wrERa� pursuant to the terms of this agreement. 5. To pay all taxes and assessments of every nature which may be levied or assessed against the COLLATERAL. Appendix 4 to Loan Contract C150205 Page 1 of 2