C150016 Contract

• Contract/PO #: C150016
• Contractor Name: Idaho Springs, City of
• Contract Type: Loan
• Water District: 7
• County: Clear Creek
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Contract Documents

5. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes,
regulations, ordinances, articles of incorporation or by-laws.

UNTIL DEFAULT DEBTOR may have possession of the COLLATERAL, provided that
DEBTOR keeps the COLLATERAL in an account separate from other revenues of DEBTOR
and does not use the COLLATERAL for any purpose not permitted by the CONTRACT. Upon
default, SECURED PARTY shall have the immediate right to the possession of the
COLLATERAL, subject to the parity rights of such collateral of the Prior Obligations
described in the CONTRACT.

DEBTOR SHALL BE IN DEFAULT under this agreement upon the happening of any of
the folloWing events or conditions:

a. default in the payment or performance of any obligation, covenant or liability
contained or referred to herein or in any note evidencing the same;

b, the making or fumishing of any warranty, representation or statement to SECURED
PARTY by or on behalf of DEBTOR which proves to have been false in any material
respect when made or fumished;

c. loss, theft, damage, destruction, sale or encumbrance to or of. any of the
COLLATERAL, or the making of any levy seizure or attachment thereof or thereon;

d. dissolution, termination of existence, insolvency, business failure, appointment of
a receiver of any part of the property of, assignment for the benefit of creditors by,
or the commencement of any proceeding under any bankruptcy or insolvency law
of, by or against DEBTOR or any guarantor or surety for DEBTOR.

UPON SUCH DEFAULT and at any time thereafter, or if it deems itself insecure,
SECURED PARTY may declare all Obligations secured hereby immediately due and payable
and shall have the remedies of a secured party under Article 9 of the Colorado Uniform
Commercial Code. SECURED PARTY may require DEBTOR to deliver or make the
COLLATERAL available to SECURED PARTY at a place to be designated by SECURED PARTY
which is reasonably convenient to both parties. The prior two sentences are specifically
subject to the parity liens of the Prior Obligations. Expenses of retaking, holding,
preparing for sale, selling or the like shall include SECURED PARTY'S reasonable attomey's
fees and legal expenses. In the event court action is deemed necessary to enforce the
terms and conditions set forth herein, said action shall only be brought in the District
Court for the City and County of Denver, State of Colorado, and DEBTOR consents to
venue and personal jurisdiction in said Court.

, The SECURED PARTY shall give the DEBTOR written notice of any alleged default and an
opportunity to cure within thirty (30) days of receipt of such notice before the DEBTOR
shall be considered in default for purposes of this Security Agreement. No default shall
be waived by SECURED PARTY except in writing, and no waiver by SECURED PARTY of any
default shall operate as a waiver of any other default or of the same default on a future
occasion. The taking of this security agreement shall not waive or impair any other
security said SECURED PARTY may have or hereafter acquire for the payment of the above
indebtedness, nor shall the taking of any such additional security waive or impair this
security agreement; but said SECURED PARTY shall retain its rights of set-off against
DEBTOR.