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<br />/ <br /> <br />'- <br /> <br />H. Pursuant to Section 1(e) of Senate Bill 96-153, the Colorado General Assembly authorized the <br />CWCB to loan to the BORROWER an amount not to exceed $600,000 for a term of thirty (30) years <br />for financing the PROJECT. <br /> <br />I. The parties recognize and understand that the revenues pledged herein by the BORROWER for <br />repayment of this loan also have been pledged for the payment of the BORROWER'S loans from the <br />U.S. Farmer's Home Administration (currently known as Rural Development) with current balances <br />totaling approximately $672,000. <br /> <br />J. The STATE has agreed that the BORROWER may use a portion of the proceeds of this loan to repay <br />bridge loans from the First Security Bank of Fort Lupton, the proceeds of which have been applied <br />to eligible costs of the PROJECT. <br /> <br />K. The STATE now desires, by this contract, to lolln money to the BORROWER for this PROJECT upon <br />mutually agreeable terms and conditions. <br /> <br />NOW THEREFORE, in consideration of the mutual and dependent covenants contained herein, <br />the parties agree as follows: <br /> <br />A. The BORROWER agrees as follows: <br /> <br />1. Time for PROJECT completion. The BORROWER recognizes that time is of the essence in the <br />performance of all of its obligations under this contract. Therefore, the BORROWER shall complete <br />its purchase of the water units no later than two (2) years from the date of this contract. The time <br />for completion may be extended subject to ttle approval of the STATE. The BORROWER must <br />provide, in writing. documente€l justification for any request for an extension at least sixty (60) days <br />prior to the end of the period for completion. <br /> <br />2. BORROWER'S indemnification of the STATE. The BORROWER shall, without expense or legal <br />liability to the STATE, manage, operate, and maintain the PROJECT continuously in an efficient and <br />economical manner. The BORROWER agrees to indemnify and hold the STATE harmless from any <br />liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any <br />other property identified in the Collateral Provisions of this contract. <br /> <br />3. BORROWER'S liability insurance. Upon execution of this contract and continuing until complete <br />repayment of the loan is made to the STATE, the BORROWER shall maintain commercial general <br />liability insurance with a company that is sati$factory to the STATE covering the management, <br />operation, and maintenance of the PROJECT facilities with minimum limits of $1,000,000 combined <br />single limit for each occurrence and $2,000,000 general aggregate, including products/completed <br />operations and personal injury. <br /> <br />Said generaL liability insurance shall name the STATE as additional insured. A copy of a certificate <br />of said insurance and an additional insured endorsement must be filed with the STATE. Evidence of <br />current insurance coverage is to be provided as renewals occur. No loan funds shall be advanced <br />by the STATE without evidence of said current coverage. Throughout the life of this contract, the <br />STATE reserves the right to increase the above amount of insurance so that said amounts at a <br />minimum correspond to the amount established by the Colorado Governmental Immunity Act, now <br />and as hereafter amended. <br /> <br />Aristocrat Ranchette Water Project, Inc. <br /> <br />Page 2 of 11 <br /> <br />Loan Contract <br />