<br />STATE OF COLORADO
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<br />UNIFORM COMMERCIAL CODE -SECURITY AGREEMENT & ANANCING STATEMENT
<br />COLORADO SECRETARY OF STATE
<br />1560 Broadway, Suite 200 - Denver, CO 80202-5169
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<br />DEBTOR:
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<br />THE TREMONT MUTUAL DITCH COMPANY
<br />P. O. Box 711
<br />Snyder, CO 80750
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<br />FED TAX ID#: 84-0974474
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<br />SECURED PARTY:
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<br />STATE OF COLORADO for the use and benefit of the
<br />Department of Natural Resources, Colorado Water Conservation Board
<br />1313 Sherman Street, Room 721
<br />Denver, CO 80203
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<br />COLLATERAL
<br />CLASSIFICATION:
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<br />_X_ CONTRACT fliGHTS
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<br />X OTHER
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<br />DEBTOR, for consideration, hereby grants to SECURED PARTY a s~curity interest in the following property and any and all additions,
<br />accessions and substitutions thereto.or therefor, hereinafter eall.d the COUATEAAl.: AU REVENUES DERIVED FROM HANDUNG
<br />FEES PAID TO THE DEBTOR BY PIONEER WA TER AND IRRlG"" TION, INC, PURSUANT TO AN AGREEMENT RECORDED IN THE
<br />OFFICE OF THE CLERK AND RECORDER OF MORGAN COUNrY, COLORADO ON MA Y 14. 1987 IN 800K 891 A T PAGE 338,
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<br />To secure payment of the indebtedness .evidenced by eenain l>romissory,Note Provisions of Loan Contract IC153726 between
<br />the above named partie..herewith, payable .to the SECURED PAlm', or order, .S follows: '45,000 wffh interest at the rate of 4%
<br />per annum payable in 20 annual installments of '3,311,18, .0' untlall principal and interest are paid in fuR,
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<br />DEBTOR EXPRESSLY WARRANTS .AND .COVENANTS:
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<br />1. That except for d1e security interest granted hereby DEBTOR is, or to -the extent that this agreement states that the
<br />COlLATERAl is to be acquired after the date ,hereof, will be, the owner of the CollATERAl-free from Bny adverse lien, security interest
<br />or encumbrances: and that DEBTOR will defend the COllATERAl against all claims and demands of all persons at anytime claiming
<br />the same or any interest therein.
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<br />2, The CoUA TElW. is used or bought primarily for:
<br />_ Personal, family or household purposes;
<br />_ Use in farming operations;
<br />Use in business:
<br />_X_ Other,
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<br />3, That DEBTOR'S address is as stated above, and the COUATERAl will be kept at SAME ADDRESS
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<br />4. If any of the COllATERAL is crops. oil, gas or minerals to be extracted or timber to be cut, Or goods which are or are to
<br />become fixtures, said CoLlATERAl concerns the following deSCribed real estate situate in the County of X and State of Colorado,
<br />to-wit: N/A
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<br />5. Promptly to notify SECURED PARTY of any changes in the location of the COUATERAL
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<br />6. To pay all taxes and assessments of every nature which may be levied or assessed against the COLLATERAL.
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<br />7. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the COLLATERAL and not to
<br />permit the same to be attached or replevined.
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<br />8. That the COUATERAl is in good condition, and that the DEBTOR will. at its own expense, k.eep the same in good condition
<br />and from time to time. forthwith, replace and repair all such parts of the collateral as may be brok.en, Worn out, or damaged without
<br />allowing any lien to be created upon the COlLATERAl on aCCOUnt of such replacement or repairs, and that the SECURED PARTY may
<br />examine and inspect the CouATERAL at any time, wherever l()cated.
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<br />9. That the DEBTOR win.not use the COllATERAL in 'liolation of any applicable statutes, regulations or ordinances.
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<br />A _ _ r- a I ...... . " I") ")
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