C153795 Contract

• Contract/PO #: C153795
• Contractor Name: Farmers Independent Ditch Company
• Contract Type: Loan
• Water District: 2
• County: Weld
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

AMENDED SECURITY AGREEMENT

DEBTOR: The Farmers Independent Ditch Company
Box 21 0
Greeley, CO 80632

FEDERAL TAX NUMBER: 84-0200745

COUNTY: WELD (CODE: 030)

SECURED PARTY: STATE OF COLORADO, COLORADO WATER CONSERVATION BOARD
1313 Sherman Street, Room 721
Denver, CO 80203

COLLATERAL: 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 levied to repay the indebtedness
on the amount loaned to DEBTOR by SECURED PAFlTY, and all rights of DEBTOR to receive said.
assessment revenues from its stockholders, as described in pledge of property provisions in Loan
Contract No. C153795, as amended.

To secure payment of the indebtedness evidenced by certain Promissory Note between the
above named parties herewith, in the amount of $37,585.96 at an interest rate of 3.75% per
annum for a term of 30 years, payable by DEBTOFl to the SECURED PARTY until all principal and
interest are paid in full in accordance with said Promissory Note. The parties are amending this
security agreement as part of Amendment No. 1 to the Loan Contract to reduce the loan amount
to $37585.96.

DEBTOR EXPRESSLY WARRANTS AND COVENANfS:

1. That except for the security interest grant 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,

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 by-laws 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 nawre which may be levied or assessed against
the COLLATERAL.

6. To not permit or allow any adverse lien, securiry 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.

UNLESS IT DEFAULTS DEBTOR may have possession of the COLLATERAL, provided that
DEBTOR keeps all revenues derived from stockholder assessments in the amount of the annual

Exhibit B to Loan Contract C153795 Amendment No.1