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, -...... ASSIGNMENT OF CERTIFICATE OF DEPOSIT In consideration of and as security for reimbursement for monies owing under a loan from the Colorado Water Conservation Board ("Lender") to the West Rhone Lateral Ditch Company ("Owner") in the amount of up to $100,000 ("Loan") pursuant to Contract Encumbrance Number C150057, ("Loan Contract"), Owner hereby assigns to the Lender Certificate of Deposit No. d.. qioG in the amount of $4,000.00 ("Collateral") issued by ~~-r..vvt..M5ti1o.-( !$0r\L- ("Bank"). Owner warrants that said Certificate of Deposit Account has been established as a special deposit with the funds deposited therein to be used solely to secure repayment of the Loan to Lender. The Collateral secures the payment and performance of all of Owner's present and future, direct or indirect, absolute and contingent, express and implied, indebtedness, liabilities, obligations and covenants (cumulatively "Obligations") by Lender pursuant to the Loan Contract described above and any amendments thereto. This Assignment is made solely to secure performance of the Obligations and is made subject to the following terms, covenants and conditions: 1. Owner shall deliver the original Certificate of Deposit to Lender upon the execution of this Assignment. This Assignment shall continue until Lender specifically terminates the security interest in the Collateral in a writing signed by Lender. 2. Lender shall be entitled to notify the Bank to pay Lender any monies owing Owner under the Certificate of Deposit in the event of a default under the Obligations. The Lender shall apply such monies first to costs associated with collection, including reasonable attorney's fees, next to outstanding interest, and then to the principal sum of the Loan, In the event that Owner possesses or receives possession of any instruments or other remittances with respect to the Certificate of Deposit following the giving of such notification, Owner shall hold such instruments and other remittances in trust for Lender apart from Owner's other property, endorse the instruments and other remittances to Lender, and immediately provide Lender with possession of the instruments and other remittances. 3. The Owner shall be in default under this Assignment upon the occurrence of any of the following events or conditions: (a) failure or omission to make any payment under the Loan Contract when due; (b) default in the payment or performance of any obligation, covenant, agreement or liability contained or referred to in the Loan Contract; (c) the making of any levy, seizure, or attachment on the Collateral; (d) the Owner becoming insolvent or unable to pay debts as they mature. The Lender shall give the Owner written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this Assignment. 4. Owner hereby appoints Lender as its attorney-in-fact to endorse Owner's name on all instruments and other remittances payable to Owner with respect to the Certificate of Deposit. This power of attorney is coupled with an interest and is irrevocable. 5. The modification or waiver of any of Owner's obligations or Lender's rights under this Assignment must be contained in a writing signed by Lender. A waiver on one occasion shall not constitute a waiver on any other occasion. 6. The rights and remedies of the Lender stated in this Assignment are in addition to any other tights the Lender may have under the Loan Contract or any law. 7. This Assignment shall be binding upon Owner and its successors, assigns, trustees, and Appendix 5 to Loan Contract C150057