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<br />AMENDED SECURITY AGREEMENT <br /> <br />DEBTOR: Jackson Lake Reservoir and Irrigation Company <br />P,O. Box 38 <br />Fort Morgan, CO 80701 <br /> <br />FEDERAL TAX NUMBER: 84-0236480 <br /> <br />COUNTY: MORGAN (CODE: 15) <br /> <br />SECURED PARTY: State of Colorado - Colorado Water Conservation Board <br />1313 Sherman Street, Room 721 <br />Denver, CO 80203 <br /> <br />COLLATERAL: Contract Rights (Code: 030) <br /> <br />DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following property <br />and any and all additions, accessions and substitutions thereto or therefor, hereinafter called the <br />COLLATERAL: revenues derived from stock assessments pledged to repay the indebtedness on the <br />amount loaned to DEBTOR by SECURED PARTY, as described in Pledge of Property provisions in Contract <br />No. C150043 (CONTRACT), and all of DEBTOR'S right to receive said assessment revenues. <br /> <br />To secure payment of the indebtedness evidenced by the Promissory Note between the above named <br />parties herewith, payable to the SECURED PARTY, the loan amount of $389,700 at an interest rate of 4% <br />per annum for a repayment period of 30 years in accordance with said Promissory Note or until all <br />principal, interest and late charges, if any, are paid in full, This amended security agreement revises <br />the increased loan amount of $389,700. <br />DEBTOR EXPRESSLY WARRANTS AND COVENANTS: <br /> <br />1. That except for the security interest granted hereby, DEBTOR is, or to the extent that this agreement <br />states that the COLLATERAL is to be acquired after the date hereof,'. will be, the owner of the <br />COLLATERAL free from any adverse lien, security interest or encumbrances; and that DEBTOR will <br />defend the COLLATERAL against all claims and demands of all persons at anytime claiming the same <br />or any interest therein, <br /> <br />2. That the execution and delivery of this agreement by DEBTOR will not violate any iaw or agreement <br />governing DEBTOR or to which DEBTOR is a party. <br /> <br />3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not <br />prohibit any term or condition of this agreement. <br /> <br />4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its <br />representations herein, DEBTOR shall be estopped from asserting for any reason that it is not <br />authorized to grant a security interest in the COLLATERAL pursuant to the terms of this agreement. <br /> <br />5. To pay all taxes and assessments of every nature which may be levied or assessed against the <br />COLLATERAL. <br /> <br />6. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the <br />COLLATERAL and not to permit the same to be attached or replevined. <br /> <br />7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations, <br />ordinances, articles of incorporation or by-laws. <br />UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that DEBTOR <br />keeps the COLLATERAL in an account separate from other revenues of DEBTOR and does not use the <br />COLLATERAL for any purpose not permitted by the CONTRACT. Upon default, SECURED PARTY shall have <br />the immediate right to the possession of the COLLATERAL. <br /> <br />DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of the <br /> <br />Attachment 5 to Contract C150043 Amendment No.1 <br />