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ASSIGNMENT OF DEPOSIT ACCOUNT AS SECURITY <br />In consideration of and as security for a loan from the Colorado Water Conservation- Board <br />("Secured Party") to the Excelsior Irrigating Company ("Debtor") in the amount of $230,000 <br />("Loan") pursuant to Contract Encumbrance Number C153797, ("Loan Contract"), Debtor <br />hereby assigns, transfers and grants to Secured Party a security interest in the funds contained <br />in Deposit Account No. (the "Account") at <br />("Bank"), hereinafter referred to as the Collateral. Debtor warrants that the Account has been <br />established as a special deposit with the funds deposited therein to be used solely for <br />repayment of the Loan to Secured Party. <br />The Collateral secures the payment and performance of all of Debtor's present and <br />future, direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, <br />obligations and covenants (cumulatively "Obligations") under the Loan Contract described <br />above and any amendments thereto. This Assignment is made solely to secure performance of <br />the Obligations and is made subject to the following terms, covenants and conditions: <br />1. This Assignment is effective upon signing and will remain in full force and effect until <br />Secured Party specifically terminates the security interest in the Collateral in writing. <br />Secured Party is not required to release this Assignment until the Loan is paid in full. <br />2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw any <br />funds from the account listed above until the Secured Party releases this Assignment in <br />writing, except that, at Debtor's request, the Bank shall allow the transfer of the annual Loan <br />payment in the amount of $12,900.15 to Secured Parly. <br />3. Debtor shall be in default under the Loan Contract for purposes of this Assignment upon the <br />occurrence of any of the following events or conditions: (a) failure or omission to make any <br />payment under the Loan Contract when due; (b) default in the payment or performance of <br />any obligation, covenant, agreement or liability contained or referred to in the Loan <br />Contract; (c) the making of any levy, seizure, or attachment on the Collateral; (d) the Debtor <br />becoming insolvent or unable to pay debts as they mature. Secured Party shall give the <br />Debtor written notice of any alleged default and an opportunity to cure within thirty (30) days <br />of receipt of such notice before Debtor shall be considered in default for purposes of this <br />Assignment. <br />4. Upon or at any time after a default under the Loan Contract as described in Paragraph 3 <br />above, Secured Party shall be entitled to notify the Bank to pay Secured Party the funds <br />contained in the Account. Secured Party shall apply such moneys first to costs associated <br />with collection, including, but not limited to, reasonable attorney's fees, next to outstanding <br />interest, and then to the principal sum of the Loan. <br />5. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or <br />any interest therein as long as this Assignment is in effect. <br />6. The modification or waiver of any of Debtor's obligations or Secured Party's rights under this <br />Assignment must be contained in a writing signed by Secured Party. A waiver on one <br />occasion shall not constitute a waiver on any other occasion. <br />Appendix 9 to Loan Contract C153797 <br />