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<br />UNTIL DEFAULT DEBTOR may have possession of that portion of the COLLATERAL, <br />consisting of revenues derived from membership fees and assessments, provided that DEBTOR <br />keeps that portion of the COLLATERAL in an account separate from other revenues of DEBTOR and <br />does not use that portion of the COLlATERAL for any purpose not permitted by the CONTRACT. Upon <br />default, SECURED PARTY shall have the immediate right to the possession of the COLLATERAL. <br />DEBTOR SHALL BE IN DEFAULT under this agreement upon any of the following events or <br />conditions: <br />a. default in the payment or performance of any obligation contained herein or in the <br />Promissory Note or Contract evidencing the same; <br />b. dissolution, termination of existence, insolvency, business failure, appointment of a <br />receiver of any part of the property of, assignment for the benefit of creditors by, or the <br />commencement of any proceeding under any bankruptcy or insolvency law of, by or <br />against DEBTOR; or <br />c. the making or furnishing of any warranty, representation or statement to SECURED PARTY <br />by or on behalf of DEBTOR which proves to have been false in any material respect when <br />made or furnished. <br />UPON SUCH DEFAULT and at any time thereafter, SECURED PARTY may declare all <br />Obligations secured hereby immediately due and payable and shall have the remedies of a secured <br />party under Artide 9 of the Colorado Uniform Commercial Code. SECURED PARTY may require <br />DEBTOR to deliver or make the COLLATERAL available to SECURED PARTY at a place to be <br />designated by SECURED PARTY which is reasonably convenient to both parties. Expenses of <br />retaking, holding, preparing for sale, selling or the like shall include SECURED PARTY'S reasonable <br />attorney's fees and legal expenses. <br />The SECURED PARTY shall give the DEBTOR written notice of any alleged default <br />and an opportunity to cure within thirty (30) days of receipt of such notice before the DEBTOR <br />shall be considered in default for purposes of this Security Agreement. No default shall be waived <br />by SECURED PARTY except in writing, and no waiver by SECURED PARTY of any default shall operate <br />as a waiver of any other default or of the same default on a future occasion. The taking of this <br />security agreement shall not waive or impair any other security SECURED PARTY may have or <br />hereafter acquire for the payment of the above indebtedness, nor shall the taking of any such <br />additional security waive or impair this security agreement; but SECURED PARTY shall retain its rights <br />of set-off against DEBTOR. In the event court action is deemed necessary to enforce the terms arid <br />conditions set forth herein, said action shall only be brought in the District Court for the City and <br />County of Denver, State of Colorado, and DEBTOR consents to venue and personal jurisdiction in <br />said Court. <br />All rights of SECURED PARTY hereunder shall inure to the benefit of its successors and <br />assigns; and all promises and duties of DEBTOR shall bind its successors or assigns. <br />DEBTOR: Arkansas Groundwater Users <br /> <br />~ ~~"'~~rr.-o" <br /> <br />~ M. Dines, Vice-President <br /> <br />SEAL <br /> <br />ATTEST: <br /> <br />By <br /> <br /> <br />0-e~ <br />