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lJ 0 r ~'') F: t& ~'7 BORROWER: LOWER ARKANSAS WATER MANAGEMENT ASSOCIATION Contract No. C153756 Agency Name: Water Conservation Board Agency Number PDA Routing Number: 04 PDA OODRd.-- LOAN CONTRACT AMENDMENT No.1 This Amendment is made this April 1, 2004, by and between the State of Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation Board ("eWCB"), and the Lower Arkansas Water Management Association, a Colorado nonprofit corporation ("BORROWER" and/or "CONTRACTOR"). FACTUAL RECITALS A. Authority exists in the law, and funds have been budgeted, appropriated, and otherwise made available for payment in Contract Encumbrance Number C153756. B. Required approval, clearance, and coordination have been accomplished from and with appropriate agencies. C. The CWCB and the BORROWER entered into Contract Encumbrance Number C153756 dated September 18, 1997, hereinafter referred to as ORIGINAL CONTRACT and incorporated herein by reference, wherein the STATE agreed to loan money in the total amount of $65,000, hereinafter referred to as the LOAN, and the BORROWER agreed to repay the LOAN in accordance with the terms of the ORIGINAL CONTRACT. D. Collateral for this loan includes a pledge of revenues and 100 shares in the Highland Irrigation Company ("Highland"), which company has been dissolved. The parties agree that the CWCB will release its security interests in the collateral for this loan and the BORROWER will reconvey security interests to the CWCB in all of the collateral for this loan, including the water rights previously represented by the Highland shares and water rights represented by other Highland Shares. This process will be conducted under the terms of this contract amendment to reflect the current loan amount. E. The BORROWER submitted a letter dated October 21, 2002, incorporated herein by reference, which describes additional unexpected financial difficulties in the form of increased legal and engineering costs associated with the Kansas v. Colorado case. The costs, which were originally estimated at $120,000 in 2001, increased to over $300,000. F. At its November 25,2002 meeting, the eWCB found that the BORROWER had encountered significant and unexpected financial difficulties and that it has been duly diligent in its efforts to comply with the repayment provisions of this contract, and approved deferral of the BORROWER'S July 2003 loan payment pursuant to 9 37-60-120(3), C.R.S. The approval provided that the July 2003 loan payment would be deferred, the interest amount of the loan payment would be added to the current loan balance, and the new loan balance re- amortized over the loan's remaining 6 years of repayment. G. The parties agree to amend the ORIGINAL CONTRACT to (1) defer the BORROWER'S July 2003 loan payment, (2) release the CWCB's security interests in all of the collateral for this loan, (3) reconvey security interests to the CWCB in all of the collateral for this loan, including the water rights previously represented by the Highland shares and water rights represented by other Highland Shares, (4) execute and deliver the revised promissory note, deed of trust, Page 1 of 4