C150338 Contract

• Contract/PO #: CT2015-051
• Contract/PO #: C150338
• Contractor Name: Eckhardt Farms Inc
• Contract Type: Loan
• Water District: 1
• County: Weld
• Loan Projects - Doc Type: Contract Documents

APPENDIX B, AMENDMENT No.1, LOAN CONTRACT CT2015-051 (C150338)
AMENDMENT TO SECURITY AGREEMENT
DATE: MAY 4, 2015
DEBTOR: ECKHARDT FARMS, INC.
SECURED PARTY: COLORADO WATER CONSERVATION BOARD
PROMISSORY NOTE: $1,336,230.00
TERMS OF REPAYMENT: 175% PER ANNUM FOR 30 YEARS
LOAN CONTRACT: 0150338
COLLATERAL: An undivided one-hundred percent (100%) interest in WATER RIGHTS equal to a
total value of an amount equal to or greater than 110% of the LOAN AMOUNT
and consisting of Certificate No. 1191 for eight and one half(8-1/2)shares,
Certificate Number 1193 for five (5) shares, and Certificate No. 1194 for
two and seventeen-thirtieths (2-17/30)shares of Farmer's Independent
Ditch Company and Certificate No. 832 for two (2) shares of Western
Mutual Ditch Company, decreed in Case Number CA6009, per Amendment
No.1 to Loan Contract CT2015-051 (C150338), the AMENDMENT'S attached
APPENDICES C1, C2, D1 and D2 and the DEBTOR'S RESOLUTION(APPENDIX E),
dated May 4, 2015.
To secure payment of the loan evidenced by the PROMISSORY NOTE payable in accordance with the TERMS OF
REPAYMENT, or until all principal, interests, and late charges, if any, are paid in full, the DEBTOR grants to
SECURED PARTY a security interest in the above described COLLATERAL.
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 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 any time 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. 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.
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 that may be levied or assessed against the COLLATERAL.
6. That the DEBTOR'S articles of incorporation and by-laws do not prohibit any term or condition of this
agreement.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps the
COLLATERAL in an account separate from other revenues of DEBTOR and does not use the COLLATERAL for any
purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall have the immediate right to the
possession of the COLLATERAL.
DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the following events or
conditions:
a. default in the payment or performance of any obligation contained herein or in the PROMISSORY NOTE or
LOAN CONTRACT;
Appendix B
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