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110 • <br /> iii. BORROWER and EVANS have executed a Conditional Assignment of Contract Proceeds, <br /> attached as Appendix I and incorporated herein, assigning the STATE its right, title and <br /> interest in and to the income from the lease of augmentation water to AGUA pursuant to the <br /> BoRROWER/AGUA lease agreement in the event of default by the BORROWER under this <br /> contract and renewals thereof. <br /> iv. BORROWER and EVANS agree that in the event the AGUA lease agreement is not renewed, <br /> and the BORROWER and/or EVANS enter into a lease agreement with another party, the <br /> BORROWER and EVANS shall execute a Conditional Assignment of Contract Proceeds in the <br /> form attached as Appendix I to convey a security interest to CWCB in the proceeds of the new <br /> lease agreement, and shall provide a copy of the lease agreement and renewals thereof. <br /> 13. Security during repayment. The BORROWER and EVANS shall not sell, convey, assign, grant, <br /> transfer, mortgage, pledge, encumber, or otherwise dispose of any security for this loan, including the <br /> PROJECT or any portion thereof, the shares of stock, or the assessment revenues pledged to repay <br /> the loan herein, so long as any of the principal and any accrued interest on this loan remain unpaid, <br /> without the prior written concurrence of the STATE. <br /> • <br /> 14. Remedies for default.. The BORROWER and EVANS agree that in the event of default in the <br /> repayment of this loan or default in the performance of any covenant or agreement contained herein, <br /> the STATE, at its option, may exercise any of the remedies listed below: <br /> a. declare the entire principal amount and accrued interest then outstanding immediately due and <br /> b. incur and pay reasonable expenses for repair, maintenance, and operation of the PROJECT <br /> facilities herein described and such expenses as may be necessary to cure the cause of default, <br /> and add the amount of such expenditures to the principal of the loan amount; and/or <br /> c. act upon the deeds of trust, stock assignments, security agreements, conditional assignment of <br /> contract proceeds or promissory note; and/or <br /> d. take possession of the shares of stock and lease the water represented by those shares; and/or <br /> e. take possession of the PROJECT facilities, repair, maintain, and operate or lease them; and/or <br /> f. take any other appropriate action. <br /> All remedies described herein may be simultaneously or selectively and successively enforced. The <br /> provisions of this contract may be enforced by the STATE at its option without regard to prior waivers <br /> of previous defaults by the BORROWER, through judicial proceedings to require specific performance <br /> of this contract, or by such other proceedings in law or equity as may be deemed necessary by the <br /> STATE to ensure compliance with provisions of this contract and the laws and regulations under which <br /> this contract is executed. The STATE'S exercise of any or all of the remedies described herein shall <br /> not relieve the BORROWER of any of its duties and obligations under this, t <br /> cct tra <br /> ' <br /> s <br /> 15. In event of a conflict. In the event of conflict between the terms of, „ pbtt .aonditions as set <br /> forth in any of the appendices, the provisions of this contract shall control. <br /> 16. Pledge of revenues. The BORROWER agrees that the specifi'c'rev nue IA peec tb repay the <br /> STATE shall include, but not be limited to, assessments levied for thaf purpose as authorized by <br /> resolution of the BORROWER. Furthermore, BORROWER agrees that <br /> a. Revenues for this loan are to be kept separate. The BORROWER hereby pledges such <br /> revenues to repay the STATE loan, agrees that these revenues shall be set aside and kept in an <br /> account separate from other BORROWER revenues, and warrants that these revenues shall not be <br /> used for any other purpose. <br /> b. Establish security interest in the revenues. The BORROWER agrees that, in order to provide a <br /> security interest for the STATE in the revenues so that the STATE shall have priority over all other <br /> competing claims for such revenues, it shall provide an executed security agreement, attached as <br /> Appendix J and incorporated herein. The Borrower acknowledges that the State shall file a <br /> The Excelsior Irrigating Company Page 6 of 12 Loan Contract <br />