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9, Warranties. a. The BORROWER warrants that, by accepting the loan money under this COr1tract and by its representations herein, the BORROWER shall be estopped from asserting for any reason that it is not authorized or obligated to repay the loan to the CWCB as required by this contract. b. The BORROWER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the BORROWER, to solicit or secure this contract and has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or the making of this contract. c, The BORROWER warrants that the collateral for this loan is not encumbered by any other deeds of trust or liens of any party other than the CWCB or in any other manner, except for any pre-existing lien(s} identified in Section 5 (Schedule of Existing Debt) of the Project Summary, which sets forth the position of the lien created by this contract in relation to that pre-existing lien, The subordination of the existing debt is attached as Appendix 5 and incorporated herein. 10. Change of Ownership of Water Shares During Term of Contract. If the interest rate for this loan is based on the ewcs's agricultural or blended agricultural and municipal rates, the BORROWER agrees to notify the STATE of any change of the ownership of its water rights from irrigation to municipal or commercial use. The interest rate shall be revised when said rate would increase the original interest rate by 0.5% or more. The parties shall amend this contract, including a revised promissory note, to effect said change in interest rate. 11, Remedies For Default. Upon default in the payments to be made by the BORROWER under this contract, or if the BORROWER fails to comply with any provision of this contract, the CWCB, at its option, may: a. suspend this contract and withhold further loan disbursements pending corrective action by the BORROWER, and if the BORROWER does not cure the default as provided for below, permanently cease loan disbCirsements and deem the PROJECT substantially complete; . b. declare the entire principal amount, accrued interest, and late charges, if any, then outstanding immediately due and payable; c. exercise its rights under any appendices to this contract, including, but not limited to, the Promissory Note, Security Agreement, Assignment of Certificate of Deposit, and/or Deed of Trust; and/or d. take any other appropriate action. The CWCB shall provide written notice to the BORROWER of any such default and shall give the BORROWER an opportunity to cure within thirty (30) days of receipt of such notice. An remedies described herein may be simultaneously or selectively and successively enforced. The eWCB may enforce the provisions of this contract at its option without regard to prior waivers of previous defaults by the BORROWER, through judicial proceedings to require specific performance of this contract, or by such other proceedings in law or equity as may be deemed necessary by the CWCB to ensure compliance with provisions of this contract Page 3 of 8 Loan Contract