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, -', ASSIGNMENT OF PLEDGED ACCOUNT AS SECURITY DEBTOR: COLORADO RIVER WATER CONSERVATION DISTRICT SECURED PARTY: COLORADO WATER CONSERVATION BOARD DEPOSITORY: NORWEST BANK ACCOUNT NO.: 017/;0147 In consideration of and as security for a loan from the Colorado Water Conservation Board ("Secured Party") in the amount of $16,255,724.12 ("Loan") pursuant to Contract Encumbrance Number C153629 dated March 14, 1996 ("Loan Contract"), as amended, the Colorado River Water Conservation District ("Debtor") hereby assigns, transfers and grants to the Secured Party a security interest in the funds contained -in the above- described interest-bearing pledged account in the amount of $1,500,000 at the above Depository institution ("Collateral"). This agreement is made to secure payment of the Loan. Debtor hereby warrants and agrees that: .'1 1. This agreement is effective upon signing and will remain in full force and effect until Secured Party releases it in writing. Secured Party is not required to release this agreement until the Loan is paid in full. . 2. Neither the Debtor nor anyone else (except Secured Party) has any right to withdraw funds from the account listed above until the Secured Party releases this agreement in writing, except that Debtor shall be entitled to withdraw interest from the account. 3. The Debtor shall be considered in default under the Loan Contract for purposes of this agreement 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, or agreel']1ent contained in the Loan Contract; (c) the making of any levy, seizure, or attachment on the Collateral by any third party; (d) the Debtor becoming insolvent or unable to pay debts as they mature. The Secured Party shall give the Debtor written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before Debtor shall be considered in default for purposes of this agreement. 4. Upon or at any time after default under the Loan Contract as described above, the Secured Party shall have the right to withdraw all or any part of the funds from the Collateral and apply the withdrawal toward the payment of the Loan, even if the withdrawal causes a penalty. The Secured Party 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. 5. The rights and remedies of the Secured Party stated in this agreement are in addition to any other rights the Secured Party may have under the Loan Contract or any law. 6. Debtor shall not sell, transfer, assign, give, or otherwise dispose of any of the Collateral or any interest therein as long as this agreement is in effect. 7. This agreement shall be construed in accordance with the laws of the State of Colorado. Attachment 4 to Contract C153629 Amendment No.2