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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 Wood Lake Mutual Water & Irrigation Company ("Owner") in the amount of $188,000 ("Loan") pursuant to Contract Encumbrance Number C153810, ("Loan Contract"), Owner hereby assigns to the Lender the following: Certificate of Deposit No. 0/- ODn9i1.:j??!in the amount of $10,544.47 . ("Collateral") issued by the Eaton Bank ("Bank"). 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 UPOntllE:l~)I;eclition of this Assignment. This Assignment shall continue until Lender specific;:lfly'termiriatesthe 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' gwner under the Certificate of Deposit in the event of a default under thaQbligations, "The Lender shall apply such monies first to costs associated with'collection,"lncluding reasonable attomey'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. 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, Appendix 4 to Loan Contract #C153810