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<br />5. Promptly to notifY Secured Party of any change in the location of the Collateral.
<br />
<br />6. To pay all taxes and assessments of every nature which may be levied or assessed against the Collateral.
<br />
<br />7. Not to pennit or allow any adverse lien, security interest or encumbrance whatsoever upon the Collateral and not to
<br />penni\ the same to be attached or replevined.
<br />
<br />8. That the Collateral is in good condition, and that he will, at his own expense, keep the same in good condition and
<br />from time to time, forthwith, replace and repair all such parts of the Collateral as may be broken, 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 Collateral at any time, wherever located.
<br />
<br />9. That he will not use the Collateral in violation of any applicable statutes, regulations or ordinances.
<br />
<br />10. The Debtor will keep the Collateral at all times insured against risks of loss or damage by fire (including so-
<br />called extended coverage), theft and such other casualties as the Secured Party may reasonably require, including collision
<br />in the case of any motor vehicle, all in such amounts, under such forms of policies, upon such terms, for such periods, and
<br />written by such companies or underwriters as the Secured Party may approve, losses in all cases to be payable to the
<br />Secured Party and the Debtor as their interest may appear. All policies of insurance shall provide for at least ten days' prior
<br />written notice of cancellation to the Secured Party; and the Debtor shall furnish the Secured Party with certificates of such
<br />insurance or other evidence satisfactory to the Secured Party as to compliance with the provisions of this paragraph. The
<br />Secured Party may act as attorney for the Debtor in making, adjusting and settling claims under or cancelling such
<br />insurance and endorsing the Debtor's name on any drafts drawn by insurers of the Collateral.
<br />
<br />UNTIL DEFAULT Debtor may have possession of the Collateral and use it in any lawful manner, and upon default
<br />Secured Party shall have the immediate right to the possession of the Collateral.
<br />
<br />DEBIDR SHAIL BE IN DEFAULT under this agreement upon the happening of any of the following events or
<br />conditions:
<br />
<br />(a) default in the payment or performance of any 0bligation, covenant or liability contained or referred to herein or in any
<br />note evidencing the same;
<br />
<br />_(1:>) thenl11akin~_()r fumisl1ing of any warran!Y, reQrt:sentati()rl_()rsta~ITI~t. to Sec;u]'ed _~by or on behalfoLDehtor
<br />which proves to have been false in any material respect when made or furnished;
<br />
<br />(c) loss, theft, damage, destruction, sale or encumbrance to or of any of the Collateral, or the making of any levy seizure
<br />or attachment thereof or thereon;
<br />
<br />(d) death, dissolution, tennination or existence, insolvency, business failure, appointment of a receiver of any part of the
<br />property of, assignment for the benefit of creditors by, or the commencement of any proceeding under any bankruptcy or
<br />insolvency laws of, by or against Debtor or any guarantor or surety for Debtor.
<br />
<br />UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure, .Secured Party may declare all
<br />Obligations secured hereby immediately due and payable and shall have the remedies of a secured party under Article 9 of the
<br />.Colorado Uniform Commercial Code. Secured Party may require Debtor to assemble the Collateral and deliver or make it
<br />available to Secured Party at a place to be designated by Secured Party which is reasonably convenient to both parties. Expenses of
<br />retaking, holding, preparing for sale, selling or the like shall include Secured Party's reasonable attorney's fees and legal
<br />expenses.
<br />
<br />No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on.a future
<br />occasion. The taking of this security agreement shall not waive or impair any other security said Secured Party may have or
<br />hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such additional security waive or impair
<br />this security agreement; but said Secured Party may resort to any security it may have in the order it may deem proper, and
<br />notwithstanding any collateral security, Secured Party shall retain its rights of set-off against Debtor.
<br />
<br />All rights of Secured Party hereunder shall inure to the benefit of its successors and assigns; and all promises and duties of
<br />Debtor shall bind his heirs, executors or administrators or his or its successors or assigns. If there be more than one Debtor, their
<br />liabilities hereunder shall be joint and several.
<br />
<br />Date this
<br />
<br />22ND
<br />
<br />day of
<br />
<br />AUOll{3r
<br />
<br />,19 q4
<br />
<br />Debtor:
<br />
<br />Secured Party: *"
<br />
<br />ELMWOOD LATERAL DITCH CO.7 INC.
<br />
<br />~ Jt. V { il-
<br />BY f, !7//)j/t/'iA'I....~l -. ," ~"f<'"10._L'i_!'
<br />"If lhis Security Agreemenl is imended 10 serve as a fin~/)o
<br />- ,
<br />
<br />
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