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binding the BoRROwER, and that the contract will be valid and binding against the BoRROwER if <br />entered into by the STATE. <br />4. Promissory Note Provisions. The Promissory Note setting fortt��e : a ment <br />� PY <br />and evidencing this debt is attached as Appendix 1 and inco ed here' _ <br />� - <br />a. Revision Of Promissory Note. In the event the Borres�r� es ' e all of the loan <br />��`.�� <br />funds for the PRO�ECT, the Promissory Note may be adjus d�,��` ', f����with the <br />Changes Provisions of this contract. �_ <br />b. Interest During Completion of PRO�ecT. As the loan funds are disbursed b�e STATE <br />to the BoRROwER during PRO�ECT completion, interest shall accrue at the rate of 4.1 % per <br />annum. The amount of the interest accrued during PRO�ECT completion on the funds that <br />have been disbursed shall be calculated by the STATE, and the BoRROwER shall repay that <br />amount to the STaTE within ten (10) days after the date the STATE determines that the <br />PRO�ECT has been substantially completed. Under this contract, substantial completion of <br />the PRO�ECT means full payment for the Box Springs Water Rights by the BoRROwER, and <br />full payment by the BoRROwER to Reid pursuant to the Settlement Agreement. <br />5. Changes. The parties may decrease the amount of the loan under this contract or extend the <br />time for completion of the PRO�ECT through a REVisiorv LETTER, approved by the State <br />Controller or his designee, in the form attached hereto as Appendix 2. The REVisioN LErrER <br />shall not be valid until approved by the State Controller or such assistant as he may <br />designate. Upon proper execution and approval, the REVisiorv LErrER shall become an <br />amendment to this contract and, except for the Special Provisions of the contract, the <br />REVisiorv LErrER shall supersede the contract in the event of a conflict befinreen the finro. The <br />parties understand and agree that the REVisiotv L�rr'ER may be used only for decreasing the <br />final loan amount or to extend the time for completion of the PRO�ECT. In the event that the <br />parties execute the REVisiorv LErr'ER to decrease the amount of the loan, the parties shall <br />amend the Promissory Note and all documents executed by the BoRROwER to convey security <br />interests to the STaTE as required by the Collateral and Pledge of Property provisions of this <br />contract to reflect the decreased loan amount. <br />6. Warranties. <br />a. The BoRROwER warrants that, by acceptance of the loan money pursuant to the terms of <br />this contract and by the BORROWER's representations herein, the BORROWER Shall be <br />estopped from asserting for any reason that he is not obligated to repay the loan money <br />to the STaTE as required by this contract. <br />b. The BoRROwER warrants that he has not employed or retained any company or person, <br />other than a bona fide employee working solely for the BoRROwER, to solicit or secure this <br />contract and has not paid or agreed to pay any person, company, corporation, individual, <br />or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other <br />consideration contingent upon or resulting from the award or the making of this contract. <br />c. The BoRROwER warrants that the property identified in the Collateral Provisions of this <br />contract is not encumbered by any other liens of any party other than the STATE or in any <br />other manner. <br />7. Collateral. The security provided for this loan shall be an undivided one hundred percent <br />Rodney J. Preisser Page 3 of 9 Loan Contract <br />