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~ ~ ~ DOLORES WATER CONSERVANCY DISTRICT WATER ACTIVITY ENTERPRISE RESOLUTION NO.OS-04-E RESOLUTION APPROVING THE AMENDMENT TO LOAN CONTRACT C150058A BETWEEN THE COLORADO WATER CONSERVATION BOARD AND THE DOLORES WATER CONSERVANCY DISTRICT, ACTING BY AND THROUGH THE DOLORES WATER CONSERVANCY DISTRICT WATER ACTIVITY ENTERPRISE, FOR THE IRRIGATION COMPONENT OF THE DISTRICT'S WETPACK PROJECT, WHICH INCLUDES CONST TION OF WATER SUPPLY 1NFRASTRUCTURE AND THE PURCHASE O O EZUMA VALLEY IRRIGATION COMPANY CLA "B" SHA S WHEREAS, the Dolores Water nserv cy Distri the "District") is a water conservancy district esta ~she pursuant and verned by Colorado statute, C.R.S. § 37-45.1-101, et se ., to c e e and dev e water resources of the Dolores River and its tributaries in Southw olorado; and WHEREAS, the Dolores Water Conservancy District Water Activity Enterprise (the "Enterprise") is an enterprise within the meaning of C.R.S. § 37-45.1-101 et se ., and Article X, Section 20 of the Colorado Constitution, and was established by Resolution NO. 93-02 of the District, dated December 14, 1993; and WHEREAS, the District, acting by and through the Enterprise ("Borrower"), obtained a loan, under Loan Contract #C150058A ("Original Contract"), from the Colorado Water Conservation Board (the "CWCB") to finance the costs of the irrigation component of the WETPACK Project, including the construction of facilities, and the purchase of Montezuma Valley Irrigation Company ("MVIC") "B" shares (together, the "Project"), in an amount not to exceed $5,461,200 or ninety percent (90%) of the cost of the Project, whichever is less, at an interest rate of 3.5% per annum for a term of up to thirty (30) years to finance Project (the "Loan"); and WHEREAS, as security for repayment of the L oan, the District and Borrower established an annuity under an Investment Agreement with MBIA Inc. dated December 5, 2002 ("Investment Agreement"); and WHEREAS, On January 26, 2005, the CWCB approved a new loan to the Borrower (the "New Loan"), denoted as Loan Contract No. C 150193, with the condition that the Borrower amend the Original Contract to add, as additional security, the pledge of Borrower's revenues necessary to assure payment under the Original Contract of the annual debt service until such date as the Borrower makes its first payment to the CWCB from the annuity under the Investment Agreement; and This document is incorporated into the contract by reference. i