PROJC00194

• Contract/PO #: C150010
• Contractor Name: Columbine Ranches POA
• Contract Type: Loan
• County: Adams
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

Debtor: Columbine Ranches Property Owner's Association
11246 Lewistown Street
Commerce City, CO 80022

FEDERAL ID NUMBER: 84-1024757

COUNTY: Adams (CODE: 12)

SECURED PARTY: State of Colorado - Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203

CDLLATERAL: Contract Rights (Code: 030)

DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following
property and any and all additions, accessions and substitutions thereto or therefor, hereinafter
called the COLLATERAL: All revenues derived from assessments on stock and all of DEBTOR'S
right to receive said assessment revenues to repay the indebtedness on the amount loaned to
debtor by secured party, as described in Pledge of Property provisions in Contract No.
C150010 (CONTRACT).

To secure payment of the indebtedness evid/mced by the Promissory Note which is a part of
the Loan Contract between the above named parties herewith, payable to the SECURED PARTY,
the loan amount of $305,250 with interest at CI rate of 4.75% per annum, payable in 30 annual
installments or until all principal, interest, and late charges, if any, are paid in full, in accordance with
said Promissory Note.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:

1. That except for the security interest granted hereby, DEBTOR is, or to the extent that this
agreement states that the COLLATERAL is to be acquired after the date hereof, will be 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 anytime 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. That, if DEBTOR is a corporation, its certificate and articles of incorporation and bylaws do
not prohibit any term or condition of this agreement.

4. That by its Clcceptance 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 which may be levied or assessed against
the COLLATERAL.

6. 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.

Appendix 0 to Loan Contract C15001 0