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iii. The BORROWER acknowledges and understands that any request for approval of <br /> the issuance of additional debt must be reviewed and approved by the CWCB prior to <br /> the issuance of any additional debt. <br /> f. Annual Statement of Debt Coverage. Each year during the term of this CONTRACT, the <br /> BORROWER shall submit to the CWCB,an annual audit report. <br /> g. Pledged Revenues During Loan Repayment. The BORROWER shall not sell, convey, <br /> assign, grant, transfer, mortgage, pledge, encumber, or otherwise dispose of the PLEDGED <br /> REVENUES, so long as any of the principal, accrued interest, and late charges, if any, on this <br /> loan remain unpaid, without the prior written concurrence of the CWCB. <br /> io. 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 NOTE, <br /> the CWCB agrees to release and terminate any and all of the CWCB's right, title, and interest <br /> in and to the PLEDGED REVENUES. <br /> ir. Warranties. <br /> a. The BORROWER warrants that, by acceptance of the loan under this CONTRACT and by its <br /> representations herein, the BORROWER shall be estopped from asserting for any reason <br /> that it is not authorized or obligated to repay the loan to the CWCB as required by this <br /> CONTRACT. <br /> b. The BORROWER warrants that it 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, <br /> individual, or firm, other than a bona fide employee, any fee, commission, percentage, <br /> gift,or other consideration contingent upon or resulting from the award or the making of <br /> this CONTRACT. <br /> c. The BORROWER warrants that the PLEDGED REVENUES for this loan are not encumbered <br /> by any other deeds of trust or liens of any party other than the CWCB or in any other <br /> manner, except for the ExISTtNG PARnY LOANS which sets forth the position of the lien <br /> created by this CONTRACT in relation to any existing lien(s). Documentation establishing <br /> the relative priorities of said liens, if necessary, is attached to the PROJECT SUMMARY and <br /> incorporated herein. <br /> 12. 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 the <br /> CWCB, of any change of the ownership of the water rights represented by its shares from <br /> irrigation to municipal or commercial or industrial use. The interest rate shall be <br /> revised when said change in ownership would increase the original interest rate by 0.5% <br /> or more.The parties shall amend this CONTRACT including a revised PROMISSORY NOTE, to <br /> effect said change in interest rate. <br /> Page 6 of 14 <br />