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<br />AMENDED SECURITY AGREEMENT <br /> <br />DEBTOR: The Wood Lake Mutual Water & Irrigation Company <br />12315 Weld County Road 72 <br />Eaton, CO 80615 <br /> <br />FEDERAL TAX NUMBER: 84-0984292 <br /> <br />COUNTY: WELD (CODE: 03) <br /> <br />SECURED PARTY: State of Colorado - Colorado Water Conservation Board <br />1313 Sherman Street, Room 721 <br />Denver, CO 80203 <br /> <br />COLLATERAL: Contract Rights (Code: 030) <br /> <br />DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following property and <br />any and all additions, accessions and substitutions thereto or therefor, hereinafter called the COLLATERAL: All <br />revenues derived from assessments levied to repay the indebtedness on the amount loaned to DEBTOR by <br />SECURED PARTY, and all rights of DEBTOR to receive said assessment revenues from its stockholders, as <br />described in pledge of property provisions in Loan Contract No. C153810, as amended. <br /> <br />To secure payment of the indebtedness evidenced DY certain Promissory Note between the above named <br />parties herewith, in the amount of $458,000.00 at an Interest rate of 3,75% per annum for a term of 30 years, <br />payable by DEBTOR to the SECURED PARTY until all principal and interest are paid in full in accordance with <br />said Promissory Note. The parties are amending this security agreement as part of Amendment #1 to <br />the Loan Contract, which increases the principal of the loan by $270,000 to a total of $458,000, <br /> <br />DEBTOR EXPRESSLY WARRANTS AND COVENANTS: <br /> <br />1, That except for the security interest grant hereby, DEBTOR is, or to the extent that this agreement states <br />that the COLLATERAL is to be acquired after the date hereof, will be. the owner of the COLLATERAL free <br />from any adverse lien, security interest or encumbrances. <br /> <br />'2. That the execution and delivery of this agreement by DEBTOR will not violate any law or agreement <br />governing DEBTOR or to which DEBTOR is a party. <br /> <br />3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not prohibit any <br />term or condition of this agreement. <br /> <br />4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its <br />representations herein, DEBTOR shall be estopped from asserting for any reason that it is not authorized <br />to grant a security interest in the COLLATERAL pursuant to the terms of this agreement. <br /> <br />5. To pay all taxes and assessments of every nature which may be levied or assessed against the <br />COLLATERAL. <br /> <br />6. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the <br />COLLATERAL and not to permit the same to be attached or replevined. <br /> <br />7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes, regulations, <br />ordinances, articles of incorporation or by-laws. <br /> <br />UNLESS IT DEFAULTS DEBTOR may have possession of the COLLATERAL, provided that DEBTOR keeps <br />all revenues derived from stockholder assessments in the amount of the annual loan payments due under the <br />contract, as amended, in an account separate from other revenues of DEBTOR and does not use said <br />revenues for any purpose not permitted by the CONTRACT. If DEBTOR defaults, SECURED PARTY shall have the <br />immediate right to the possession of the COLLATERAL. <br /> <br />DEBTOR SHALL BE IN DEFAULT under this <lgreement upon the happening of any of the following <br /> <br />Exhibit 4 to Loan Contract C153810 Amendment No.1 <br />