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<br />parties or sustained in connection with the performance of any contract related to the PROJECT or by conditions
<br />created thereby, or based upon an violation of any statute, ordinance, or regulation, and the defense of any such
<br />claims or actions.
<br />
<br />4, Uability insurance during construction. The BORROWER shall require the CONSTRUCTION FIRM and its
<br />subcontractors to maintain during the term of their contracts for construction of the PROJECT the following:
<br />
<br />a. Workmen's compensation in the required statutory amounts, and employers' liability insurance in the
<br />amount of $200,000, ( ,
<br />
<br />b,. Automobile liability insurance for all vehicles and comprehensive general liability insurance, both in at
<br />least the following amounts: '
<br />
<br />(i) For any injury to one person in any single occurrence, the sum of Five 'Hundred Thousand Dollars
<br />($500,000).
<br />
<br />(ii) For any injury to two or more persons in any single occurrence, the sum of One Million Dollars
<br />($1,000,000),
<br />
<br />liii) For any damage to property, the sum of Five Hundred Thousand Dollars ($500,000) for each
<br />occurrence.
<br />
<br />Said general liability insurance shall name the BORROWER and the STATE as additional insured. No payments
<br />shall be made to the BORROWER under this contract unless copies of current certificates of all such insurance have
<br />been obtained by the BORROWER ,and filed with the STATE, Such filing of current certificates shall be accomplished
<br />before the beginning of construction, Notices of renewals of said policies shall also be filed with the STATE as they
<br />occur,
<br />
<br />5. After construction, hold the STATE harmless from any liability, and maintain liability insurance coverage. The
<br />BORROWER shall, without expense or legal liability to the STATE, manage, operate, and maintain the PROJECT
<br />continuously in an efficient apd economical manner, The BORROWER agrees to ,indemnify and hold the STATE
<br />harmless from any 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 Deed of Trust Provisions of this contractDUntil complete repayment 'of the loan is
<br />made to the STATE, the BORROWER shall maintain compre~~~e.Jiei1~ra)1iability insurance covering the management,
<br />operation, 'and maintenance of the PROJECT in at least the"following amounts:
<br />, ,G b \':\':1':1
<br />,a. For any injury to one person in any single occu~ce, the sum o~e Hundred Fifty Thousand Dollars
<br />($150,000). , B\JCi\\~'9-'
<br />, o.Ilc.\l:.ib.~'~
<br />b. For any injury to two or more persons>'1ll'l""'any single occurrence, the, sum of One Million Dollars
<br />($1,000,000),
<br />
<br />- c. For any damage to property, the sum of Five Hundred Thousand Dollars ($500,000) for each occurrence,
<br />
<br />Said general liability insurance shall name the STATE as additional insured, A copy of a certificate of said liability
<br />insurance must be filed with the STATE sixty (60) days prior to the completion of the PROJECT. Such certificate shall
<br />be incorporated herein as part of this contract, Evidence of renewal of said liability insurance is to be submitted with
<br />the an"oual payment which is discussed below,
<br />
<br />6. ,:BORROWER'S authority to contract.' Pursuant to its limited partnership agreement, the BORROWER shall take
<br />all necessary actions to authorize the General Partner to contract for this loan and to pay the indebtedness as it
<br />comes due. The BORROWER shall also authorize the execution of the deed of trust by the General Partner as the
<br />security instrument to be provided to the State under the terms of this contract. These conditions must be
<br />performed by the BORROWER prior to the execution of this contract.
<br />
<br />LLOYD RANCH LIMITED PARTNERSHIP
<br />
<br />Page 3 of 10
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<br />LOAN CONTRACT
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