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<br />Promissory Note
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<br />Date: March 20, 2002 Date of Completion JI"....." J lJ , ZOO 2-
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<br />1. FOR VALUE RECEIVED, The Glenwood Irrigation Company ("BORROWER") promises to pay the State of
<br />Colorado Water Conservation Board ("STATE"), the principal sum of Eighty Five Thousand Dollars ($85,000)
<br />plus interest at the rate of five percent (5%) per annum for a term of thirty (30) years, pursuant to Loan Contract
<br />No. C150086, dated March 20, 2002 ("LOAN CONTRACT").
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<br />2. Principai and interest shall be payable in equal installments of $5,529.37, with the first payment due and
<br />payable Dne year from the date that the State determines that the project is substantially complete, and annually
<br />thereafter until all principal, interest, and all late charges, if any, have been paid in full. All principal, interest, and
<br />late charges, if any, then remaining unpaid shall be due and payable 30 years thereafter.
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<br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman
<br />. Street, Room 721, Denver, Colorado 80203.
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<br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may
<br />impose a late charge in the amount of 5% of the annual payment.
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<br />5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment
<br />shall not postpone the due date of any subsequent payments or change the amount of such payments.
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<br />6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce
<br />the principal amount.
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<br />7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN
<br />CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that
<br />may become due hereunder. The security interests, evidenced by a Security Agreement and a Deed of Trust,
<br />dated March 20, 2002, cover certain revenues, accounts and real property of the BORROWER. The LOAN
<br />CONTRACT, Security Agreement and Deed of Trust grant additional rights to the STATE, including the right to
<br />accelerate the maturity of this Note in certain events.
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<br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement
<br />or Deed of Trust securing this Note occurs, the STATE may declare the entire outstanding principal balance of
<br />the Note, ali accrued interest, and any outstanding late charges immediately due and payable, and the
<br />indebtedness shall bear interest at the rate of 7% per annum from the date of default. The STATE shall give the
<br />BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of
<br />such notice before the BORROWER shall be considered in default for purposes of this Promissory Note.
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<br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or
<br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest
<br />thereon is not paid when due or if suit is brought, then it shall pay all reasonable costs of collection, including
<br />reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of coilection shall include
<br />all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for
<br />attendance at meetings of creditors' committees or other committees.
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<br />10. This Note shall be governed in all respects by the laws of the State of Colorado.
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<br />BORROWER: The Glenwood Irrigation Company, a
<br />Colorad~ corporation
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<br />By ~:r /!
<br />Carter T. Jackson, President
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<br />Appendix 2 to Loan Contract C150086
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