This PRELIMINARY AGREEMENT is effective                   between the COLORADO HEALTH FACILITIES AUTHORITY (COHFA) and                             herein referred to as APPLICANT.


              COHFA and APPLICANT intend to undertake a financing in the amount of approximately $                                    under the Colorado Health Facilities Authority Act; and further, desire to set forth responsibilities of each party and liability for expenses associated with the financing.


             THEREFORE, it is agreed as follows:


             1.     COHFA will:  a) use reasonable efforts to arrange financing in a timely fashion, on terms and conditions acceptable to APPLICANT; b) engage, after consultation with APPLICANT when appropriate, such advisors, consultants and other providers of necessary services as may be appropriate to the financing; c) cooperate with APPLICANT to minimize costs of the financing; d) immediately cease preparation of the financing and notify its advisors and consultants to do the same upon receipt of a written request to this effect from APPLICANT.


           2.      APPLICANT will:  a) furnish as appropriate and in timely fashion evidence of all necessary governmental approvals, opinions of counsel, documents, certificates and other information as may be requested by COHFA or its advisors, consultants, and counsel; b) ensure timely payment of all fees and costs chargeable to APPLICANT, including but not limited to the following:


                    (i)      fees and expenses of a financial feasibility study (if required); fees and expenses of consultants, advisors and attorneys, whether retained by COHFA or by APPLICANT (other than the fees and expenses of COHFA’s General Counsel and Financial Advisor), fees of the Trustee, fees and expenses of bond counsel and the underwriter/placement agent, printing costs, and any other expenses related to the financing.


                   (ii)       COHFA's fees as provided in Paragraph 3 below.


                   (iii)      Annual Trustee fees.


             3.    The fees payable by APPLICANT to COHFA will consist of an Initial Planning Service Fee (Initial Fee), and an Annual Service Fee (Annual Fee) payable in periodic installments after the financing is closed.


                         (a)     Initial Fee


                         The Initial Fee paid to  COHFA is payment for the services of COHFA's

                         General Counsel, Financial Advisor retained by COHFA, and COHFA's

                         general costs and expenses.  All other costs related to the Financing are

                         payable by APPLICANT in addition to the Initial Fee.


                        The total Initial Fee for a financing in the amount of $                  will be

                         $              payable at closing of the financing.


If APPLICANT decides at any time to abandon the financing for any reason, APPLICANT shall be obligated to pay to COHFA, a sum equal to all out of pocket costs incurred by COHFA which relate at any time to the financing, including but not limited to the fees and expenses of advisors, consultants and attorneys, provided that such amount shall not exceed the Initial Fee.  Such outpocket costs shall accrue through the date on which APPLICANT delivers to COHFA, in writing, its intention to abandon the financing.


                   (b)    Annual Fee


                    An Annual Fee is payable to COHFA, based upon the outstanding principal

                    balance on the day before each anniversary date of the bonds or notes.  The

                    Annual Fee is due and payable quarterly, in arrears, following the date of the

                    bonds or notes.  The Annual Fee shall be computed at the current annual rate

                    as adjusted from time to time by COHFA by written notice to APPLICANT. 


            4.     Pending the execution of other financing documents among the parties     to the financing, COHFA and APPLICANT each retain the complete prerogative at any time to elect by written notice not to further proceed with the financing, in which event there shall be no further or continuing obligation on the part of COHFA or APPLICANT, except that the obligations owed by APPLICANT to COHFA under Paragraph 3 shall survive any termination of the financing process.


            5.     This AGREEMENT shall not be deemed to constitute in any way a determination by COHFA that the financing is feasible or will in fact be accomplished.  COHFA does not promise nor guarantee approval of the Application for Financing or a successful financing, or in any way represent that funds for the financing are or will become available.


            6.     APPLICANT acknowledges that: a) COHFA, an independent public body politic and corporate, constituting a public instrumentality, is a political subdivision of the State of Colorado and therefore is subject to the Colorado Open Records Act; b) all records of COHFA, including any and all information supplied to COHFA by APPLICANT at any time, are open for inspection by any person (including corporations) at reasonable times, except as otherwise specifically provided by law. In the event COHFA receives a request for inspection of any of its records relating to APPLICANT, COHFA will notify APPLICANT of such request and will inform APPLICANT of its response to such request in accordance with its Policy on Release of Information from COHFA files.  COHFA shall have no liability or responsibility of any nature to APPLICANT with respect to any response to a request for inspection of COHFA's records.


           7.       As you know, as part of the services offered to its borrowers, COHFA makes available Ponder & Co. (“Ponder”) to provide certain financial advisory services for no additional charge to borrowers who may desire such services in connection with COHFA financings. To the extent APPLICANT chooses to utilize such financial advisory services from Ponder in connection with the financing described in this Preliminary Agreement or any other COHFA financing for the benefit of APPLICANT, APPLICANT hereby acknowledges the following:


  • Ponder is not marketing, promoting or providing financial advice to APPLICANT on behalf    of COHFA.


  • Any financial advice given by Ponder to APPLICANT does not constitute an advice from      COHFA.


  • Ponder is not acting as COHFA’s agent in providing its financial advice to APPLICANT.


  • Any financial advice given by Ponder to APPLICANT is for the sole benefit of APPLICANT and is not intended to benefit COHFA.


  • Although COHFA agreed to the general scope of Ponder’s financial advice to COHFA’s borrowers, COHFA maintains no control over the substance of any financial advice given by Ponder to APPLICANT.


  • The substance of a financial advice given by Ponder to APPLICANT is independent of, and is not influenced by, any relationship between Ponder and COHFA.







                                             Corinne M. Johnson

                                             Executive Director