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<br />" <br /> <br />," <br /> <br />SECURITY AGREEMENT <br /> <br />(PLEDGE OF REVENUES) <br /> <br />DATE: MARCH 14,2007 <br /> <br />DEBTOR: TOWN OF DEBEQUE, ACTING BY AND THROUGH ITS IRRIGATION <br />SYSTEM ENTERPRISE <br /> <br />SECURED PARTY: eOLORADO WATER CONSERVATION BOARD <br />1313 SHERMAN STREET, ROOM 721 <br />DENVER, CO 80203 <br /> <br />PROMISSORY NOTE: $252,500, DATED MARCH 14, 2007 <br /> <br />TERMS OF REPAYMENT: 3.25% PER ANNUM FOR 30 YEARS <br /> <br />LOAN CONTRACT: e 150241 , DATED MARCH 14, 2007 <br /> <br />eOLLATERAL: All Irrigation System Enterprise revenues pledged to repay the <br />loan, as further described in Pledge of Revenues provisions <br />of the LOAN CONTRACT. <br /> <br />To secure payment of the loan evidenced by the PROMISSORY NOTE payable in <br />accordance with the TERMS OF REPAYMENT, or until all principal, interest, and late <br />charges, if any, are paid in full, the DEBTOR grants to SECURED PARTY a security interest in <br />the above described COLLATERAL. <br />DEBTOR EXPRESSLY WARRANTS AND COVENANTS: <br />1. That except for the security interest granted hereby and any other security interests <br />described in Section 5 of the Loan Contract Project Summary, DEBTOR is the owner of <br />the eOLLATERAL free from any adverse lien, security interest or encumbrances; and <br />that DEBTOR will defend the eOLLATERAL against all claims and demands of all persons <br />at any time claiming the same or any interest therein. <br />2. That the execution and delivery of this agreement by DEBTOR will not violate any law or <br />agreement governing DEBTOR or to which DEBTOR is a party. <br />3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever <br />upon the COLLATERAL and not to permit the same to be attached or replevined. <br />4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and <br />by its representations herein, DEBTOR shall be estopped from asserting for any reason <br />that it is not authorized to grant a security interest in the COLLATERAL pursuant to the <br />terms of this agreement. <br />UNTIL DEFAULT DEBTOR may have possession of the eOLLATERAL, provided that <br />DEBTOR keeps the eOLLATERAL in an account separate from other revenues of DEBTOR <br />and does not use the eOLLATERAL for any purpose not permitted by the CONTRACT. Upon <br />default, SECURED PARTY shall have the immediate right to the possession of the <br />COLLATERAL. <br /> <br />Appendix 4 to Loan Contract C150241 <br />Page 1 of 2 <br />