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<br />5, Promptly 10 notifY Secu,_~ Party of any change in the location of the CollaLt:ral,
<br />
<br />6. To pay aJllaXes and assessments of every nature which may be levied or assessed against the Collateral.
<br />
<br />7. Not to permit or allow any adverse lien, security interest or encumbrance whatsoever upon the Collateral and not to
<br />pennit 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, fortl1with, 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 Ihe 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 o( 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 ,uch 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 (or 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 Pany shall have the immediate right to the possessio~ of Ihe Collateral.
<br />
<br />DEBlDR SHAli. BE IN DEFAULT under this agreement upon Ihe happening of any of Ihe following events or
<br />conditions:
<br />
<br />(a) defaull in the paymenl or perfonnance of any Obligation, covenanl or liability conlained or referred to herein or in any
<br />note evidencing the same;
<br />
<br />(b) the making or furnishing of any v.rarranty. representation or statement to Secured Party by or on behalf of Debtor
<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 Ihe making of any levy seizure
<br />or attachment thereof or thereon;
<br />
<br />(d) death, dissolution. termination orexistence. insolvency, business failure. appointment ofa receiver of any pan of the
<br />propeny of, aSsignment for the benefit of creditors by, or Ihe commencement of any proceeding under any bankruptcy or
<br />insolvency laws of, by or against Debtor or any guarantor or ,urety for Debtor,
<br />
<br />UPON SUCH DEFAULT and at any time thereafter, or if it deems itser insecure, Secured Party may declare all
<br />Obligations secured hereby immediately due and pa)'lble and ,hall have the remedies of a secured palty under Anicle 9 of the
<br />Colorado Unifonn CotlUl1ercial 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 panies, 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 w.Uver 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 r-dIty may have or
<br />hereafter acquire for the payment of the above indebtedness, nof shall the taking of any such additional security waive or impair
<br />this security agreement: but said Secured Party may reson to any security it may have in the order it may deem proper, and
<br />n~if.lj.standing any collateral security, Secured Party shall re",in its rights of set-off against Debtor,
<br />(nt.:.
<br />f}~1I rights of Secured Party hereunder shall inure to the benefit of ils successors and assigns; and all promises and duties of
<br />~sQr,}haU bind his heirs. executors or administrators or his or its successors or assigns. If there be more than one Debtor. their
<br />liab,l1~s hereunder shall be joint and several. EXHIBIT G
<br />CJ
<br />(:,; Page 2 of 2
<br />.1-.1 ".,Date this 5 th day of Augus t , 19 91 --
<br />t.;,,....,,
<br />Cl
<br />Debl~;
<br />"'-'''C::J
<br />C)
<br />
<br />. President
<br />
<br />secuztre :* COLORADO W!';TER CONSER-
<br />
<br />, ~;rjO!J~
<br />-
<br />
<br />
<br />RESERVOIR
<br />o PANY
<br />
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