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AMENDED SECURITY AGREEMENT DEBTOR: The Buffalo Mutual Irrigation Company P.O. Box 187 Holly, CO 81047 FEDERAL TAX NUMBER: 84-0410332 COUNTY: PROWERS (CODE: 030) SECURED PARTY: State of Colorado - Colorado Water Conservation Board 1313 Sherman Street, Room 721 Denver, CO 80203 COLLATERAL: Contract Rights (Code: 030) DEBTOR, for consideration, hereby grants to SECURED PARTY a security interest in the following property and any and all additions, accessions and substitutions thereto or therefor, hereinafter called the COLLATERAL: All revenues derived from assessments levied to repay the indebtedness on the amount loaned to DEBTOR by SECURED PARTY, and all rights of DEBTOR to receive said assessment revenues from its stockholders, as described in pledge of property provisions in Loan Contract No. C153793, as amended. To secure payment of the indebtedness evidenced by certain Promissory Note between the above named parties herewith, in the amount of $382,250.00 at an interest rate of 3.75% per annum for a term of 30 years, payable by DEBTOR to the SECURED PARTY until all principal and interest are paid in full in accordance with said Promissory Note. The parties are amending this security agreement as part of Amendment NO.1 to the Loan Contract, which increases the principal of the loan by $128,750 to a total of $382,250. DEBTOR EXPRESSLY WARRANTS AND COVENANTS: 1. That except for the security interest grant hereby, DEBTOR is, or to the extent that this agreement states that the COLLATERAL is to be acquired after the date hereof, will be, the owner of the COLLATERAL free from any adverse lien, security interest or encumbrances. 2. That the execution and delivery of this agreement by DEBTOR will not violate any law or agreement goveming DEBTOR or to which DEBTOR is a party. 3. That, if DEBTOR is a corporation, its certificate and articles of incorporation and by-laws do not prohibit any term or condition of this agreement. 4. That by its acceptance of the loan money pursuant to the terms of the CONTRACT and by its representations herein, DEBTOR shall be estopped from asserting for any reason that it is not authorized to grant a security interest in the COLLATERAL pursuant to the terms of this agreement. 5. To pay all taxes and assessments of every nature which may be levied or assessed against the COLLATERAL. .' 6. To not permit or allow any adverse lien, security interest or encumbrance whatsoever upon the COLLATERAL and not to permit the same to be attached or replevined. 7. That the DEBTOR will not use the COLLATERAL in violation of any applicable statutes; regulations, ordinances, articles of incorporation or by-laws. UNLESS IT DEFAULTS DEBTOR may have possession of the COLLATERAL, provided thai DEBTOR keeps all revenues derived from stockholder assessments in the amount of the annual loan. Exhibit 4 to Contract C153793 Amendment 1