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<br />, ' <br /> <br />7. Covenants of Grantor. Grantor covenants and agrees: (a) to cause the <br />Obligations to be paid and to keep and perform according to their terms all of <br />the covenants and agreements contained in this deed of trust and in any other <br />instrument which may have been executed in connection with this deed of trust; <br />(b) to pay and satisfy when due all claims, taxes and assessments and prior <br />encumbrances which affect the Property and not to permit or suffer any other <br />lien against the Property, except if contested in good faith and by <br />appropriate proceedings or with the prior written consent of Beneficiary; <br />(c) to appear in and defend any action or proceeding purporting to affect the <br />Property, this deed of trust or Beneficiary's rights therein or herein; <br />(d) that all awards and proceeds received in connection with the condemnation <br />of or injury or damage to the Property or amounts received in lieu of such <br />awards or proceeds shall be paid to Beneficiary and shall be applied by <br />Beneficiary first to reasonable costs and expenses, including reasonable <br />attorneys' fees, incurred by Beneficiary in connection with such awards or <br />proceeds and then to the payment of the Obligations with the surplus, if any, <br />to be paid to Grantor; and (e) that, if Grantor fails to keep and perform any <br />covenant or agreement contained in this deed of trust according to its terms, <br />Beneficiary may, after 30 days' notice to Grantor, take or cause to be taken <br />such action as it deems necessary or desirable to the end that such covenants <br />and agreements may be kept and performed, and any sums advanced or costs and <br />expenses reasonably incurred by Beneficiary in connection therewith, including <br />reasonable attorneys' fees, shall become a portion of the Obligations and <br />shall bear interest at the rate on the face of the Note. Grantor warrants <br />that by its acceptance of the benefits of the loan money pursuant to the terms <br />of the loan agreement between Maker and Beneficiary and by Grantor's <br />representation herein, Grantor shall be estopped from asserting for any reason <br />that it is not authorized to mortgage the Property pursuant to the terms of <br />this deed of trust. <br /> <br />8. Transfer. If Grantor shall sell, contract to sell or otherwise transfer <br />all or any part of the Property without the prior written consent of <br />Beneficiary, the Obligations shall be forthwith due and payable at the <br />election of Beneficiary if permitted by Colorado law as then in effect. <br />Beneficiary may require the transferee to assume the Obligations as a <br />condition to its consent to the transfer and impose any other conditions <br />permitted by law. Grantor shall promptly notify Beneficiary of any proposed <br />transfer. <br /> <br />9. Partial Release of Property. (a) Beginning with the making of the fourth <br />annual payment under the Note due August ,1996, upon receipt by Beneficiary <br />of a required payment or any prepayment under the Note together with interest <br />accrued thereon and certified as allocable to the Obligations, Beneficiary <br />shall take all steps and execute all documents necessary to release a number <br />of the shares comprising the Property from the encumbrance of this deed of <br />trust the value of which is proportional to the payment made, as calculated <br />pursuant to the loan agreement between Maker and Beneficiary. Shares <br />representing Class A Series 2 stock shall be released first. (b) Upon payment <br />in full of the Obligations (whether or not other portions of the Note have <br /> <br />D-2 <br />