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BORROWER: CONSOLIDATED MUTUAL WATER COMPANY Contract No. C150011 Agency Name: Water Consen/ation Board Agency Number PDA Routing Number: 07 PDA. 0 C (, 'L 'f LOAN CONTRACrAMENDMENT No.3 (STANDARD CONTRACT - WAIVER #160 - ApPROVED NOVEMBER 10,20(3) This Amendment, made this October 12, 2006, by and between the State of Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation Board ("CWCB"), and Thl~ Consolidated Mutual Water Company, 12700 W. 2yth Avenue, Lakewood, CO 80215 ("BORROWER" 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 C150011. B. Required approval, clearance, and coordination have been accomplished from and with appropriate agencies. C, The CWCB and the BORROWER enterecl into Contract Encumbrance Number C150011, dated October 13,1999, and amended on May 1, 2000 and September 21, 2001 ("ORIGINAL CONTRACT"), incorporated herein by reference, wherein the CWCS agreed to loan money in the total amount up to $20,633,000, and the BORROWER agreed to repay the loan in accordance with the terms of the ORIGINAL CONTRACT. D. Section 37-60-120 (3), C.R.S., authorizes the CWCB to defer an annual loan payment if, in the CWCB's opinion, the entity requesting such deferral demonstrates that it has encountered significant and unexpected financial difficulties and that it has been duly diligent in its efforts to comply with the repayment provisions of its contract with the CWCs. E. The BORROWER submitted a letter dated April 17, 2006, incorporated herein by reference, that describes unexpected financial difficulties resulting from high costs required to upgrade the Maple Grove Water Treatment Plant and requested that the 2007 through 2011 loan payments be defemed. Pursuant to its request, Borrower will make five annual interest only payments and resume a principal and interest payment in March of 2012. F. At its July 25, 2006 meeting, the CWCB 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 2007 through 2011 loan payments pursuant to ~ 37-60-120(3), C.R.S. Further, the CWCB stated that the amended contract will establish a new loan repayment schedule based on a new amortization schedule which increases the interest rate by 0.25% after the March 2006 annual payment. G. The parties agree to amend the ORIGINAL CONTRACT to defer the BORROWER'S loan payment. NOW THEREFORE, the parties hereby agree that Page 1 of 6