PROJC00480

• Contract/PO #: C150043
• Contractor Name: Jackson Lake Reservoir & Irrigation Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: HB 00-1419
• Loan Projects - Doc Type: Contract Documents

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of the loan, which will result in the annual loan payment remaining the same. and the time
for repayment of the loan will be reduced. If the final loan amount is less than 90% of the
AUTHORIZED LOAN AMOUNT, the STATE may apply those funds to prepayment of the loan
with the BORROWER'S consent, or the State and the BORROWER shall execute a contract
amendment that will establish the final loan amount and amend or replace the loan
documents that reflect the final loan amount, including the Promissory Note, Security
Agreement, Deed of Trust, and Assignment of Certificate of Deposit.

10. Warranties.

a. The BORROWER warrants that, by acceptance of the loan money pursuant to the terms of
this contract and by the BORROWER'S representation herein, the BORROWER shall be
estopped from asserting for any reason that it is not authorized or obligated to repay the
loan money to the STATE as required by this contract.

b, The BORROWER warrants that it has full power and authority to enter into this contract.
The execution and delivery of this contract and the performance and observation of its
terms, conditions and obligations have been duly authorized by all necessary actions of
the BORROWER.

c. The BORROWER warrants that it has not employed or retained any company or person,
other than a bona fide employee working solely for the BORROWER, to solicit or secure this
contract and has not paid or agreed to pay any person, company, corporation, individual,
or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other
consideration contingent upon or resulting from the award or the making of this contract.

d. The BORROWER warrants that the property identified in the Collateral Provisions of this
contract is not encumbered by any other deeds of trust to or liens of any party other than
the STATE or in any other manner.

11. Collateral. Part of the security provided for this loan, as evidenced by the executed
Assignment of Certificate of Deposit attached as Appendix 3 and incorporated herein, shall be
an undivided one hundred percent (100%) interest in a certificate of deposit account
established by the BORROWER in the amount of one annual loan payment ($19,465.61),
hereinafter referred to as CD ACCOUNT. The STATE shall use the funds contained in the CD
ACCOUNT for the purpose of paying principal and interest due under this contract not otherwise
paid by the BORROWER. Any amount withdrawn by the STATE for this purpose shall be
replenished by the BORROWER within sixty days after such withdrawal. The STATE shall not
disburse any loan funds under this contract until the BORROWER has established the CD
ACCOUNT,

Additional security provided for this loan, as evidenced by the executed Deed of Trust attached
as Appendix 4 and incorporated herein, shall be an undivided one hundred percent (100%)
interest in the BORROWER'S diversion structure on the South Platte River to be rehabilitated
with funds provided by this loan, as more particularly described in the attached Deed of Trust,
hereinafter referred to as 'collateral."

12. Pledge Of Property. The BORROWER hereby irrevocably pledges to the STATE for purposes of
repayment of this loan revenues from assessments levied for that purpose as authorized by
the BORROWER'S resolution and all of the BORROWER'S rights to receive said assessment
revenues from its members (hereinafter collectively referred to as the "pledged property").
Furthermore, BORROWER agrees that

a. Revenues For This Loan Are To Be Kept Separate. The BORROWER hereby agrees to
set aside and keep the pledged revenues in an account separate from other BORROWER

Jackson Lake Reservoir and Irrigation Co, Page 5 of 13

Loan Contract