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<br />withdrawal of the funds.
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<br />9. Collateral. The collateral for this loan is described in Section 6 (Collateral) of the
<br />Project Summary, and secured by the instrument(s) attached hereto as Appendix 5
<br />and incorporated herein.
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<br />10. Collateral During Loan Repayment. The BORROWER shall not sell, convey, assign,
<br />grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the Collateral or
<br />the Pledged Property so long as any of the principal, accrued interest, and late
<br />charges, if any, on this loan remain unpaid, without the prior written concurrence of
<br />the CWCB. In the event of any such sale, transfer or encumbrance without the
<br />CWCB's written concurrence, the CWCB may at any time thereafter declare all
<br />outstanding principal, interest, and late charges, if any, on this loan immediately due
<br />and payable.
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<br />11. Release After Loan Is Repaid. Upon complete repayment to the CWCB of the entire
<br />principal, all accrued interest, and late charges, if any, as specified in the Promissory
<br />Note, the CWCB agrees to release and terminate any and all of the CWCB's right, title,
<br />and interest in and to the Collateral and the Pledged Property.
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<br />12. Warranties.
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<br />a. The BORROWER warrants that, by acceptance of the loan under this contract and by
<br />its representations herein, the BORROWER shall be estopped from asserting for any
<br />reason that it is not authorized or obligated to repay the loan to the CWCB as
<br />required by this contract.
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<br />b. The BORROWER warrants that it has not employed or retained any company or
<br />person, other than a bona fide employee working solely for the BORROWER, to solicit
<br />or secure this contract and has not paid or agreed to pay any person, company,
<br />corporation, individual, or firm, other than a bona fide employee, any fee,
<br />commission, percentage, gift, or other consideration contingent upon or resulting
<br />from the award or the making of this contract.
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<br />c. The BORROWER warrants that the Pledged Property and Collateral for this loan
<br />are not encumbered by any other deeds of trust or liens of any party other than the
<br />CWCB or in any other manner, except and subject to (1) the equitable ownership
<br />rights of the holders of shares of capital stock in the BORROWER and lenders holding
<br />valid collateral assignments or pledges of shares of such stock, as recognized by law,
<br />and (2) any existing Iien(s) identified in Section 5 (Schedule of Existing Debt) of the
<br />Project Summary, which sets forth the position of the lien created by this contract
<br />in relation to any existing Iien(s). Documentation establishing the relative priorities
<br />of said liens, if necessary, is attached to the Project Summary and incorporated
<br />herein.
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<br />13. Change of Ownership of Water Shares During Term of Contract. If the interest
<br />rate for this loan is based on the CWCB's agricultural or blended agricultural and
<br />municipal and/or commercial and/or industrial rates, the BORROWER agrees to notify
<br />the CWCB of any change of the ownership of the water rights represented by its
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<br />Loan Contract C150206
<br />Page 4 of 11
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