C150161 Contract

• Contract/PO #: C150161
• Contractor Name: Greeley and Loveland Irrigation Company
• Contract Type: Loan
• Water District: 4
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

SECURITY AGREEMENT

(PLEDGE OF REVENUES)

DATE: February 18, 2005

DEBTOR: The Greeley and Loveland Irrigation Company

SECURED PARTY: COLORADO WATER CONSERVATION BOARD
1313 SHERMAN STREET, ROOM 721
DENVER, CO 80203

PROMISSORY NOTE: $2,844,000, DATED February 18, 2005

TERMS OF REPAYMENT: 3.0% PER ANNUM FOR 30 YEARS

LOAN CONTRACT: C150161, DATED February 18, 2005

COLLATERAL: ALL revenues derived from assessments on stock and all of
Debtor's right to receive said assessment revenues to repay the
loan as described in Pledge of Property provisions of the LOAN
CONTRACT and the Borrower's Resolutions dated January 15, 2004
and~, 2005.

To secure payment of the loan evigenced by the PROMISSORY NOTE payable in accordance with the
TERMS OF REPAYMENT, or until all principal, interest, and late charges, if any, are paid in full, the
DEBTOR grants to SECURED PARTY a security interest in the above described COLLATERAL.
DEBTOR EXPRESSLY WARRANTS AND COVENANTS:
1. That except for the security interest granted hereby and any other security interests described in
Section 5 of the Loan Contract Project Summary, DEBTOR is 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 any time 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. 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.
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. That the DEBTOR'S articles of incorporation and by-laws do not prohibit any term or condition of this
agreement.
UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR
keeps the COLLATERAL in an account separate from other revenues of DEBTOR and does not use the
COLLATERAL for any purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall have
the immediate right to the possession of the COLLATERAL.

Appendix 4 to Loan Contract C150161
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