PROJC01739 ‎(3)‎

• Contract/PO #: C153768
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• County: Prowers
• Bill Number: SB 96-124
• Loan Projects - Doc Type: Contract Documents

PROMISSORY NOTE

Date: April 1, 2004

Borrower: Lower Arkansas Water Management Association

Principal Amount: $1,875,583.50

Interest Rate: 3% per annum

Term of Repayment: 40 years

Loan Contract: No. C153768, dated May 28, 1997, and amended May 17, 1999;
January 14, 2000; March 10, 2001; and April 1, 2004

Loan Payment: $67,200 annually for Years 2005 through 2014 and $89,296.70
annually for Years 2015 through 2044

Payment Initiation Date: April 1, 2005

Maturity Date: April 1, 2044

1. FOR VALUE RECEIVED, the BORROWER promises to pay the Colorado Water Conservation
Board ("CWCB"), the Principal Amount plus Interest for the Term of Repayment, pursuant
to the LOAN CONTRACT and this promissory note.

2. This Promissory Note replaces and supersedes the Promissory Note dated May 28,
1997{Appendix 2 to Loan Contract C153768) in the principal amount of $2,300,000.

3. Principal and interest shall be payable in equal Loan Payments, with the first payment due
April 1, 2005 (Payment Initiation Date), and annually thereafter. All principal, interest, and
late charges, if any, then remaining unpaid shall be due and payable on or before the
Maturity Date.

4. Payments shall be made to the Colorado Water Conservation Board at 1313 Sherman
Street, Room 721, Denver, Colorado 80203.

5. The CWCB may impose a late charge in the amount of 5% of the annual payment if the
CWCB does not receive the annual payment within 15 calendar days of the due date.

6. This Note may be prepaid in whole or in part at any time without premium or penalty. Any
partial prepayment shall not postpone the due date of any subsequent payments or change
the amount of such payments.

7. All payments received shall be applied first to late charges, if any, next to accrued interest
and then to reduce the principal amount.

8. This Note is issued pursuant to the LOAN CONTRACT between the CWCB and the
BORROWER. The LOAN CONTRACT creates security interests in favor of the CWCB to secure
the prompt payment of all amounts that may become due hereunder. Said security
interests are evidenced by a Security Agreement and Deed of Trust of even date and
amount and cover certain revenues, real property and/or water rights of the BORROWER. The
LOAN CONTRACT, Security Agreement and Deed of Trust grant additional rights to the

Appendix A to Loan Contract C153768 Amendment No.4