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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 4 <br />and incorporated herein. <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. <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. <br />12. Warranties. <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. <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 <br />solicit or secure this contract and has not paid or agreed to pay any person, <br />company, 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. <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 for any existing lien(s) identified in Section 5 <br />(Schedule of Existing Debt) of the Project Summary, which sets forth the position <br />of the lien created by this contract in relation to any existing lien(s). Documentation <br />establishing the relative priorities of said liens, if necessary, is attached to the <br />Project Summary and incorporated herein. <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 <br />shares from irrigation to municipal or commercial or industrial use. The interest rate <br />shall be revised when said change in ownership would increase the original interest <br />rate by 0.5% or more. The parties shall amend this contract, including a revised <br />promissory note, to effect said change in interest rate. <br />Loan Contract C150290 <br />Page 4 of 11 <br />