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( r-- individual, or firm, other than a bona fida employee, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or the making of this contract. f. The BORROWER shall make all reasonable efforts to require the OBLIGORS to comply with the terms of this contract. g. That the property identified in the Collateral Provisions of this contract is not encumbered by any other deeds of trust to any party other than the STATE or in any other manner. 3. Promissory note provisions. The BORROWER and the OBLIGORS understand that this contract is also a promissory note for the repayment of funds loaned according to the terms set forth herein. a. Principal amount. The principal amount of the loan shall be $20,000. b. Interest rate. The interest on the principal shall accrue at the rate of four percent (4%) per annum on all funds advanced to BORROWER. c. Duration. The repayment period of this loan shall be twenty (20) years. d. Loan payment. The loan payments shall be made in 20 annual installments of One Thousand Four Hundred Seventy-One Dollars and Sixty-FolJr Cents ($1,471.64), which amount includes principal and interest. The first installment s~all ~~'uue and payable on one (1) .year following the date that the STATE disburses the funds to the BORROWER and yearly thereafter until the entire principal sum and any accrued interest 6hall h6v~.be~n paid. Installment payments are to be made payable to the CWCB at the address given below. c e. Prepayment conditions. The BORROWER or t~e OBLIGOR may prepay all or any of the loan at any time, without penalty. These paymentS will tie ~p;>iied first to any accrued interest and then to reduce the principal amount. ,', c: r e'" 4. Collateral. The collateral provided for this loan s,l\!ill'be an undivided one hundred percent (100%) interest in the following property owned by the OB~IGORS:' SW'r{4 SE 1/4 by the plat of the Original survey, the same and identical lands described under the 1908 Gow![flfnent Land Office Resurvey as Tract 59 lying in Section 27, Township 1 North, Range 95 West of the 6t,! P.N[:, County of Rio Blanco, State of Colorado, containing 40 acres more or less and being subject to any'easef(1ents and rights of way of record. '. . The collateral shall be evidenced by the deed of trust attached hereto as Appendix B and incorporated herein, completed and properly executed by the OSLlGORS. 5. OBLIGORS' liability insurance. The OBLlClORS shall, without expense or legal liability to the STATE, manage, operate, and maintain the PROJECT and SECURITY continuously in an efficient and economical manner. The BORROWER and OBLIGORS agree to indemnify and hold the STATE harmless from any liability incurred by the STATE as a result of the STATE'S interest in the PROJECT facilities and any other property identified in the Collateral Provision of this contract. Until complete repayment of the loan is made to the STATE, the OBLIGORS shall maintain comprehensive general liability insurance covering the management, operation, and maintenance of the PROJECT and collateral in at least the followir1g amounts: a. For any injury to one person in any single occurrence, the sum of One Hundred Fifty Thousand Dollars ($150,000). b. For any injury to two or more parsor1S in any single occurrence, the sum of One Million Dollars ($1,000,000). c. For any damage to property, the sum of Five Hundred Thousand Dollars ($500,000) for each occurrence. HAY-BRETHERTON DITCH COMPANY Page 3 of 8 LOAN CONTRACT