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CONTRACT, the BORROWER shall submit to the CWCB an annual financial
<br /> statement.
<br /> 9. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey,
<br /> assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the
<br /> PLEDGED REVENUES, 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.
<br /> 10.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 PLEDGED REVENUES.
<br /> 11.Warranties.
<br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT
<br /> and by its representations herein, the BORROWER shall be estopped from
<br /> asserting for any reason that it is not authorized or obligated to repay the loan to
<br /> the CWCB as 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
<br /> fee, commission, percentage, gift, or other consideration contingent upon or
<br /> resulting from the award or the making of this CONTRACT.
<br /> c. The BORROWER warrants that the PLEDGED REVENUES and COLLATERAL for this
<br /> loan are not encumbered by any other deeds of trust or liens of any party other
<br /> than the CWCB or in any other manner, except for any existing lien(s) identified
<br /> in Section 5 (Schedule of Existing Debt) of the PROJECT SUMMARY, which sets
<br /> forth the position of the lien created by this CONTRACT in relation to any existing
<br /> lien(s).
<br /> 12.Remedies for Default. Upon default in the payments to be made by the BORROWER
<br /> under this CONTRACT, or default in the performance of any covenant or agreement
<br /> contained herein, the CWCB, at its option, may:
<br /> a. suspend this CONTRACT and withhold further loan disbursements pending
<br /> corrective action by the BORROWER, and if the BORROWER does not cure the
<br /> default as provided for below, permanently cease loan disbursements and deem
<br /> the PROJECT substantially complete;
<br /> b. exercise its rights under any appendices to this CONTRACT, including, but not
<br /> limited to, the PROMISSORY NOTE and SECURITY AGREEMENT; and/or
<br /> c. take any other appropriate action.
<br /> The CWCB shall provide written notice to the BORROWER of any such default and shall
<br /> Loan Contract C150410D
<br /> Page 5 of 13
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