LPPD000402

• Contract/PO #: C150067
• Contractor Name: Lower South Platte Water Conservancy District
• Contract Type: Loan
• Water District: 64
• County: Logan
• Loan Projects - Doc Type: Contract Documents

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Promissory Note

Date October 1, 2001 Date of Completion

1. FOR VALUE RECEIVED, the Lower South Platter Water Conservancy District, acting by
and through the Lower South Platte Recharge Project Water Activity" Enterprise
("BORROWER") promises to pay the State of Colorado Water Conservation Board
("CWCB"), the principal sum of One Hundred Thousand Dollars ($100,000) plus
interest at the rate of three percent (3%) per annum for a term of ten (10) years,
pursuant to Loan Contract No. C150067 dated October 1, 2001 ("LOAN CONTRACT").

2. Principal and interest shall be payable in equal installments of $11,723.05, with the first
payment due and payable year from the date that the CWCB determines that the
project is substantially com ete, nd annually thereafter until all principal, interest, and
all late charges, if any, hav n paid in full. All principal, interest, and late charges, if
any, then remaining unpai shall be due and payable 10 years thereafter.

3. .Payments -sha-II- be made" payable t~lor~do. W~ter Con's8rVation - Board - and
mailed to 1313 Sherman Street, Roo~nver, Colorado 80203. .

4. If the CWCB does not receive the annual paYme~t in 15 calendar days of the due
da~e, the CWCB may im~o~e a late ch~rge in the a ~nt of .5% of the a.nnual.payment.

5. This Note may be prepaid In whole or In part at an tIme w~t remlum or penalty.
Any partial prepayment shall not postpone the due date of a ._ ..- sub quent payments or
change the amount of such payments.

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

7. 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. The
security interests, evidenced by a Security Agreement dated October 1, 2001 and a
Conditional Assignment of Contract Proceeds cover certain revenues and accounts of
the BORROWER. The LOAN CONTRACT, Security Agreement and Conditional Assignment
grant additional rights to the CWCB, including the right to accelerate the maturity of this
Note in certain events.

8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or
the Security Agreements or Conditional Assignments securing this Note occurs, the
CWCB may declare the entire outstanding principal balance of the Note, all accrued
interest, and any outstanding late charges immediately due and payable, and the
indebtedness shall bear interest at the rate of 7% per annum from the date of default.
The CWCB shall give the BORROWER written notice of any alleged default and an
opportunity to cure within thirty (30) days of receipt of such notice before the
BORROWER shail be considered in defauit for purposes of this Promissory Note.

Appendix 2 to Loan Contract C150067