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<br />determines that the project has been substantially completed,
<br />and yearly thereafter until the entire principal Sum shall have
<br />been paid. However, in the event the Borrower does not draw
<br />funds commencing on the date specified in paragraph C.I.a.
<br />below, the obligation to repay shall be postponed for the same
<br />number of months as the Borrower delays in drawing funds. Said
<br />installment payments shall be made payable to the Colorado
<br />Water Conservation Board, payable at the offices of said Board
<br />in Denver, Colorado. The Borrower pledges its full faith and
<br />credit in support of this obligation and warrants that it has
<br />taken all steps necessary to pledge its full faith and credit
<br />for this obligation.
<br />
<br />12. Obtain and maintain general fire and hazard insurance
<br />on the project in an amount not less than the outstanding
<br />amount of the loan made by the State to the Borrower until the
<br />Borrower has repaid the loan in the full under the terms of
<br />paragraph A.1I. above. The State shall be the sole insured of
<br />this policy. The outstanding loan amount payable to the State
<br />shall be reduced in the amount of any payments made to the
<br />State under this insurance coverage. If only a portion of the
<br />outstanding loan amount is paid to the State under this policy,
<br />the number of installment payments shall remain unchangedj
<br />however, the amount of each payment shall be reduced.
<br />
<br />13.
<br />attached
<br />herein.
<br />
<br />Comply with the Construction Fund Program Procedures
<br />hereto as Exhibit D and incorporated by reference
<br />
<br />14. Comply with the provisions of section 37-60-120,
<br />Colorado Revised Statutes, and any other applicable statutes,
<br />procedures, requirements, rules, or regulations which the State
<br />has.
<br />
<br />15. Not sell, convey, assign, grant, transfer, mortgage,
<br />pledge, encumber, or otherwise dispose of the project or any
<br />portion thereof, so long as any of the annual installments
<br />required by paragraph A.Il. above remain unpaid, without the
<br />prior written concurrence of the State.
<br />
<br />16. In consideration for the State's promises herein set
<br />forth, promise to indemnify, save and hold harmless and defend
<br />the State, and all of its employees and agents, acting
<br />officially or otherwise, from any and all liability, claims,
<br />demands, actions, debts, and attorney fees arising out of,
<br />claimed on account of, or in any manner predicated upon loss or
<br />damage to the property of and injuries to, or death of all
<br />persons whatsoever, which may occur, or is sustained in
<br />connection with the performance of this contract, or by
<br />conditions created thereby, or based upon any violation of any
<br />statute, ordinance, or regulation, and the defense of any such
<br />claims or actions.
<br />
<br />B. upon default in the payments herein set forth to be made
<br />by the Borrower, or default in the performance of any covenant
<br />or agreement contained herein, the State, at its option, may
<br />(a) declare the entire principal amount then outstanding
<br />immediately due and payable; (b) for the account of the
<br />Borrower, incur and pay reasonable expenses for repair,
<br />maintenance, and operation of the project herein described and
<br />such expenses as may be necessary to cure the cause of default;
<br />(c) take possession of the project, repair, maintain, and
<br />operate Or lease itj (d) act upon the security (described in
<br />paragraph A.5. above) deeded to the State; and/or (e) take any
<br />other appropriate legal action. All remedies described herein
<br />may be simultaneously or selectively and successivley
<br />enforced. The provisions of this contract may be enforced by
<br />the State at its option without regard to prior waivers by it
<br />of previous defaults by the Borrower, through judicial
<br />proceedings to require specific performance of this contract or
<br />
<br />Page 4 of 8 Pages
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