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<br />e <br /> <br />e <br /> <br />CONDITIONAL ASSIGNMENT OF CONTRACT PROCEEDS <br /> <br />In consideration of and as security for reimbursement for monies owing under a <br />loan from the Colorado Water Conservation Board ("Assignee") in the amount, of <br />$100,000 ("Loan") pursuant to contract Encumbrance Number C150067, ("Loan <br />Contract"), the Lower South Platte Water Conservancy District, acting by and through the <br />Lower South Platte Recharge Project Water Activity Enterprise ("Assignor") hereby <br />conditionally assigns and transfers to the Assignee, for its use and benefit, all of the <br />Assignor's right, title and interest in and to any and all monies due, or which may become <br />due, on the sale of replacement water,to the Groundwater Appropriators of the South <br />Platte River ("GASP") pursuant to an Agreement between the Assignor and GASP <br />executed June 5, 2001 ("GASP Agreement"), attached hereto and incorporated herein <br />(such monies hereinafter referred to as "GASP monies"). This Assignment shall take <br />effect only if and when the Assignor is considered in default under the Loan Contract as <br />provided below. This Assignment is made solely to secure payment of the Loan and is <br />ma-d-e-stlbjecl-teJ the fcl1owi-ng te-FIilS, . covenants and -ct>n-d-itkms: -.. - -. <br /> <br />1. This Assignment shall take effect only if and when the Assignor is considered in <br />default under the Loan Contract, and in that event the Assignment will remain in full force <br />and effect until the Assignee releases it in writing. In the event the Assignment becomes <br />effective, the Assignee shall release this Assignment when the Loan is paid in full. <br /> <br />2. The Assignor shall be considered in default under the Loan Contract for purposes <br />of this Assignment upon the occurrence of any of the following events or conditions: (a) <br />failure or omission to make any payment under the Loan Contract when due; (b) default <br />in the payment or performance of any obligation, covenant, or agreement contained in <br />the Loan Contract; (c) the making of any levy, seizure, or attachment on the GASP <br />monies by any third party; (d) the Assignor becoming insolvent or unable to pay debts as <br />they mature. The Assignee shall give the Assignor written notice of any alleged default <br />and an opportunity to cure within thirty (30) days of receipt of such notice before <br />Assignor shall be considered in default for purposes of this Assignment. <br />So long as there shall exist no default by the Assignor in the payment of the principal <br />sum and interest secured hereby, or in the performance of any obligation, covenant or <br />agreement contained in the Loan Contract, this Assignment shall not take effect and the <br />Assignor shall retain the sole right to collect all GASP monies. <br /> <br />3. Upon or at any time after default in the payment of the principal sum and interest <br />secured hereby, or in the performance of any obligation, covenant or agreement <br />contained in the Loan Contract, the Assignee, without in any way waiving such default, <br />may, upon notice in writing to GASP and the Assignor, demand, collect and receive all <br />GASP monies to the extent required to satisfy the Assignor's obligations under the loan <br />contract. Upon receipt of such notice, the Assignor shall notify GASP of the Assignee's <br />exercise of this right. The Assignee shall apply such monies first to costs associated with <br />collection, including reasonable attorney's fees, next to outstanding interest, and then to <br /> <br />Appendix 5 to Loan Contract C150067 <br />