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BORROWER: ARKANSAS GROUNDWATER USERS ASSOCIATION Contract No. C153808 Agency Name: Water Conservation Board Agency Number PDA Routing Number: 04 PDA ~ lOAN CONTRACT AMENDMENT No. 1 This Amendment made this November 1, 2003, by and between the State of Colorado for the use and benefit of the Department of Natural Resources, Colorado Water Conservation Board ("CWCB" or "STATE"), and Arkansas Groundwater Users Association, a Colorado nonprofit corporation ("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 C153808, Fund Number 424, Appropriation ARA, GBL A808, Reporting Category: 3808. 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 C153808, dated February 24, 1998, ("ORIGINAL CONTRACT"), incorporated herein by reference, wherein tlie. CWCB agreed to loan money in the total amount up to $590,590, and the BORROWER agreed to repay the loan in accordance with the terms of the ORIGINAL CONTRACT. . D. Section 37-60-120 (3), CR.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 CWCB. E. The BORROWER submitted a letter dated June 4, 2002, incorporated herein by reference, that describes financial difficulties in the form of unexpected expenses due to the drought, such as high engineering costs associated with reworking its augmentation plan several times due to high pumping and lack of water in the system and costs of association members traveling to California for depositions in the Colorado v. Kansas case, and requested that the 2002, 2003, 2004 and 2005 loan payments be deferred. F. At its July 2002 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 2002, 2003, 2004 and 2005 loan payments pursuant to S 37-60- 120(3), C.R.S. Further, the CWCB stated that the interest amount of the deferred loan payments would be added to the current loan balance, and the payment revised Page 1 of 4