C153742 Contract

• Contract/PO #: C153742
• Contractor Name: Beaver Park Water, Inc.
• Contract Type: Loan
• Water District: 12
• County: Fremont
• Bill Number: SB 94-029
• Loan Projects - Doc Type: Contract Documents

AMENDED SECURITY AGREEMENT

DEBTOR:

Beaver Park Water, Inc.
p, 0, Box 286,401 Broadway
Penrose, CO 81240

FEDERAL TAX NUMBER:

84-0721934

SECURED PARTY:

STATE OF COLORADO for the use and benefit of
The Department of Natural Resources, Colorado Water Conservation Board
1313 Sherman Street, Room 721
Denver, CO 80203

COLLATERAL:
COUNTY:

Contract Rights & other (Code: 030)
Fremont (Code: 14)

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 to repay the indebtedness on the amount loaned to debtor by secured party, as
described in pledge of revenues provisions in contract #C153742, as amended tCONTRAC7"),

To secure payment of the indebtedness evidenced by the Promissory Note which is a part of the CONTRACT between
the above named parties herewith, payable to the SECURED PARTY, until all principal and interest are paid in full. This
security agreement is amended to acknowledge Amendment #1 to the CONlRACT.

DEBTOR EXPRESSLY WARRANTS AND COVENANTS:

..
1. That except for the security interest granted hereby and previous security interests granted to the State of
Colorado, 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 goveming
DEBTOR or to which DEBTOR is a party.

3. That, if DEBTOR is a corporation, its certificate and articleS of incorporation and by-Jaws do not prohibit any term or
condition of this agreement.

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 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.

7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations, ordinances,
articles of incorporation or by-laws.

Exhibit 2 to Contract #C153742 Amendment #1