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PARITY AGREEMENT <br />Whereas, the Dolores Water Conservancy District, a Colorado quasi - municipal <br />corporation ( "DWCD "), has two agreements with Montezuma Valley Irrigation Company <br />( "MVIC "), among others, under which MVIC has repayment obligations to DWCD secured by a <br />first lien on MVIC's assessment revenues. These Agreements include the "Contract between <br />DWCD and MVIC for Adjustment of Water Rights and Sale of the Use of Irrigation Water, <br />Dolores Project, Colorado River Storage Project" (Articles 4, 6, 7 and 8), and the "Contract <br />Among the United States and DWCD, MVIC and the Ute Mountain Ute Tribe Providing for the <br />Adjustment of Water Rights and for the Rehabilitation, Operation, Maintenance and <br />Replacement of Facilities to Reduce Salinity Inflow to Colorado River" (Articles 5 and 6). <br />Whereas, MVIC intends to enter into a loan contract with the Colorado Water <br />Conservations Board ( "CWCB ") to borrow $2,979,825.00 for thirty (30) years at two and a <br />quarter percent (2.25 %) per annum, also to be secured by a pledge of MVIC's assessment <br />revenue; <br />NOW, THEREFORE, DWCD and the CWCB hereby agree that the CWCB's interest in <br />MVIC's pledged revenues resulting from the above - referenced CWCB loan contract shall be on <br />parity with MVIC's existing payment obligations to DWCD, and in the event of default by <br />MVIC under its payment obligations to either DWCD or the CWCB, DWCD and the CWCB <br />will divide the available MVIC assets on a pro -rata basis, based on MVIC's payments due <br />DWCD and CWCB for the year of any MVIC default. <br />The parties hereto have executed this Parity Agreement. <br />D ores Water nservancy District <br />Donald W. Schwindt, President <br />Colorado ater Conservation Board <br />For he CWCB Director <br />Date: 11-V- , 2007 Date: 1,1X , 2007 <br />