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<br />Participants annually. This paragraph shall provide the SwSP Enterprise's exclusive
<br />remedy for recovering administration, operation, maintenance, repair and replacement
<br />costs in the event that Allottee does not appropriate funds or pay those costs as
<br />provided in paragraph 8.a. above.
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<br />c. The Allottee's payment of annual administration, operation, maintenance, repair and replacement
<br />charges and costs of the Pipeline, pursuant to the preceding paragraphs 6.b.v., 6.b.vi., 8.a.
<br />and B.b., does not in any way impair the vested nature of the allocation of capacity pursuant
<br />to this Contract and are not related to the value of that vested right. These obligations do
<br />not convert the Allottee's prepaid right of possession of its allotted capacity in the Pipeline
<br />into any form of an executory lease or contract.
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<br />9. Comoletion Date. Attached hereto as Exhibit 2 is a time line for construction and completion
<br />of the Pipeline. The time line may be modified for good cause. The S.SP Enterprise shall complete construction
<br />of the Pipeline in accordance with the time line as modified, subject to force majeure events, failure of the
<br />participants to make required payments under this or similar contracts and so long as the delay is not as a
<br />direct or indirect result of SWSP Enterprise's negligence, delays beyond the SWSP Enterprise's reasonable
<br />control occurring in the right-of-',ay acquisition process or caused by the construction process or the
<br />construction contractors. In addition, the completion date is subject to change based upon mutual agreement
<br />of all of the Participants, as conditions and available information warrant.
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<br />10. Construction and Financial Reoorts and Heetinos. The SWSP Enterprise will provide Allottee
<br />with written monthly reports together with financial reports regarding payment of charges and costs and
<br />expenditures during construction of the Pipeline on the progress of construction and the expenditure of funds.
<br />In addition, the SWSP Enterprise shall schedule and hold meetings of all Participants at the offices of the
<br />District in Loveland, Colorado, at least quarterly at which time the s.SP Enterprise shall present and discuss
<br />the financial reports regarding payment of charges and costs by the Participants and the expenditure of funds.
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<br />11. Limitations on Riohts of Allottee. In addition to all the other tel1:lS, conditions and
<br />covenants contained herein, it is specifically understood and agreed by and between the parties hereto that the
<br />rights of the Allottee hereunder are subject to the following terms, conditions and limitations, which are
<br />incorporated herein by this reference;
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<br />a. The Water Conservancy Act of Colorado, C.R.S II 37-45-101 et sea.; and
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<br />b. The rules, regulations and policies of the Board and the same as may be amended from time to
<br />time, provided that to the extent such future rules, regulations and policies adversely affect
<br />the Allottee's rights hereunder or its rights to use the capacity contracted for in any lawful
<br />manner, such future rules, regulations or policies shall not be enforceable against Allottee.
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<br />12. Transfer of Allotment. Allottee shall have the right to permanently assign or transfer all
<br />or any part of its allotoent of capacity hereunder, for such consideration as Allottee in its sole discretion
<br />may establish, subject to the terms and conditions of this Contract to another Entity that is financially able
<br />to perform this Contract ,ith the prior ~ritten consent of the Board, ,hich shall not be unreasonably withheld.
<br />Allottee may, in its sole discretion, lease, sublease, pledge a security interest in a lease, or pledge or
<br />encunber all or a portion of lts allotment of capacity hereunder to another Entity Subject to the terms and
<br />conditions of this Contract ,ithout prior approval of the Board, Allottee shall be relieved of its obligations
<br />hereunder to the extent of any permanent transfer of capacity, except as other,ise provided herein. Promptly
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