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� SECTION 6 - COLLATERAL � The collateral provided for this loan, as evidenced by the executed Security Agreements, Deeds of Trust and Assignments, in the form attached as Appendices 4-66 and incorporated herein, shall be a pledge of revenue assessments and a security interest in at a minimum 459 shares of Bull Creek Reservoir, Canal & Power Company stock, as more particularly described in the attached Security Agreements and Deeds of Trust ("Collateral"). SECTION 7— ADDITIONAL CONDITIONS & CONTRACT REQUIREMENTS Borrower shall pay off the current loan held by Palisade National Bank in Palisade, Colorado, with an estimated balance of $160,000. 2. Borrower shall not issue any new shares of Bull Creek Reservoir, Canal & Power Stock without the prior written consent of the CWCB. 3. Transfer of ownership or sale of any share of Bull Creek Reservoir, Canal & Power Company stock pledged as collateral for the CWCB loan will not constitute a substitution of collateral pursuant to Section A.2.a of the Loan Contract (and shall not warrant an amendment to the contract), so long as prior written consent for such transfer or sale is provided by the CWCB and an equal number of shares of stock is returned to the CWCB as provided in Section 7.4, below. 4. The procedure for a transfer or sale of any share of Bull Creek Reservoir, Canal & Power Company stock pledged as collateral for the CWCB loan shall be as follows: (a) the shareholder shall provide a written request to the CWCB to transfer or sell the specified share(s); (b) within fifteen (15) working days after receiving the request, the CWCB shall provide written consent to or denial of the proposed transfer or sale; (c) upon consent, the CWCB shall return to the Company's secretary-treasurer the original stock certificate(s) as well as a new Security Agreement, Deed of Trust, and Stock Assignment ("Security Instruments") to be signed by the new owner of said share(s); and (d) the secretary-treasurer shall return to the CWCB the newly issued stock certificate(s) representing a number of shares equal to the amount sold or transferred, as well as the signed Security Instruments, along with any filing, release and/or recording costs associated with said Security Instruments. The Security Instruments will be filed and recorded. SECTION 8— CONSTRUCTION FUND PROGRAM PROCEDURES A. The BoRROwER shall employ an engineer, registered in the state of Colorado to prepare plans and specifications for the PRO�ECT. B. Th@ BORROWER's and the Engineering ConsultanYs Agreements and the plans and specifications must be submitted to the CWCB staff for verification of compliance with the terms of this Contract when available prior to bidding. Any modifications to the plans and specifications must be approved in writing by the CWCB staff. C. For plans and specifications for all jurisdictional dams and reservoirs, as defined by § 37-87-105 C.R.S., the BoRROwER shall provide a letter of approval from the State Appendix 1 to Loan Contract C150240 Page 2 of 4