PROJ01887 ‎(2)‎

• Contract/PO #: C150229
• Contractor Name: Logan Irrigation District
• Contract Type: Loan
• Water District: 0
• County: Logan
• Loan Projects - Doc Type: Contract Documents

Prewitt Operating Committee
AGREEMENT-September 1,2006
Page 2

2.2 CWCB Loan for Construction. The Parties agree that construction ofthe
required spillway at Prewitt Reservoir shall be accomplished pursuant to a loan in the amount of
$303,385 dollars issued to and in the name of the Logan Irrigation District from the CWCB
Severance Tax Trust Fund Perpetual Base Account pursuant to the provisions ofCRS. ~~ 39-
29-109(1)(a)(I), 37-60-119, and 37-60-120 (the "CWCB Loan").

2.3 Repayment of the CWCB Loan.

2.3.1 Collection of Annual Debt Service and Debt Service Reserves.

2.3.1.1 The Logan Irrigation District shall annually collect within
its district 54.8% of the annual debt service due upon the CWCB Loan and of any amount
required to be deposited in a debt service reserve account for the CWCB Loan, and hereby
pledges to certify for collection within its district annually pursuant to statute an amount
sufficient, with other revenues available to the district, to defray 54.8% of such annual debt
service on the CWCB Loan and of any required debt service reserve deposit for such loan.

2.3.1.2 The Iliff Irrigation District shall annually collect within its
district 25.8% of the annual debt service due upon the CWCB Loan and of any amount required
to be deposited in a debt service reserve account for the CWCB Loan, and hereby pledges to
certify for collection within its district annually pursuant to statute an amount sufficient, with
other revenues available to the district, to defray 25.8% of such annual debt service on the
CWCB Loan and of any required debt service reserve deposit for such loan.

2,3.1.3 The Morgan-Prewitt Reservoir Company shall annually
collect 19.4% of the annual debt service upon the CWCB Loan and of any amount required to be
deposited in a debt service reserve account for the CWCB Loan, and hereby pledges to
recommend to its stockholders annually pursuant to statute that assessments for the Company's
stock be set in an amount sufficient, together with other revenues available to the Company, to
defray 19.4% of the annual debt service of the CWCB Loan and of any required debt service
reserve deposit for such loan.

2.3.2 Remittance to CWCR No later than 14 days before the due date
of any debt service payment to the CWCB, the Iliff Irrigation District and the Morgan-Prewitt
Reservoir Company shall each remit to the Logan Irrigation District their pro rata share of the
upcoming debt service payment and of any required debt service reserve deposit for such loan;
thereafter the Logan Irrigation District shall timely forward the debt service payments received
from the other Owners, together with its 54.8% pro rata share of the debt service payment, to the
CWCB, and shall, as necessary, deposit debt service reserve amounts into the debt service
reserve account for the CWCB Loan.