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SECURITY AGREEMENT <br />(PLEDGE OF REVENUES <br />DATE: APRIL 23, 2013 <br />DEBTOR: ORDWAY FEEDYARD, LLC <br />SECURED PARTY: COLORADO WATER CONSERVATION BOARD <br />PROMISSORY NOTE: $2,525,000 <br />TERMS OF REPAYMENT: 1.75% PER ANNUM FOR 30 YEARS <br />LOAN CONTRACT: C150349 <br />COLLATERAL: All lease revenues and other legally available revenue and all of DEBTOR's <br />right to receive said lease and other revenues to repay the loan as <br />described in PLEDGED PROPERTY provisions of the LOAN CONTRACT and <br />DEBTOR's Resolution, dated April 25, 2013. <br />To secure payment of the loan evidenced by the PROMISSORY NOTE payable in accordance with the TERMS <br />OF REPAYMENT, or until all principal, interest, and late charges, if any, are paid in full, the DEBTOR grants to <br />SECURED PARTY a security interest in 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 described in Section <br />5 of the LOAN CONTRACT PROJECT SUMMARY, DEBTOR is the owner of the COLLATERAL free from any <br />adverse lien, security interest or encumbrances; and that DEBTOR will defend the COLLATERAL against all <br />claims and demands of all persons 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 agreement <br />governing DEBTOR or to which DEBTOR is a party. <br />3. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the <br />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 by its <br />representations herein, DEBTOR shall be estopped from asserting for any reason that it is not authorized <br />to grant a security interest in the COLLATERAL pursuant to the terms of this agreement. <br />5. To pay all taxes and assessments of every nature which may be levied or assessed against the <br />COLLATERAL. <br />6. That the DEBTOR'S articles of incorporation and by -laws do not prohibit any term or condition of this <br />agreement. <br />UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps the <br />COLLATERAL in an account separate from other revenues of DEBTOR and does not use the COLLATERAL for <br />any purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall have the immediate right to <br />the possession of the COLLATERAL. <br />DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the following events or <br />conditions: <br />a. default in the payment or performance of any obligation contained herein or in the PROMISSORY <br />NOTE or LOAN CONTRACT; <br />b. dissolution, termination of existence, insolvency, business failure, appointment of a receiver of any <br />part of the property of, assignment for the benefit of creditors by, or the commencement of any <br />Appendix 4 to Loan Contract C150349 <br />Page 1 of 2 <br />