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<br />PROMISSORY NOTE <br /> <br />Dat~~~ ,1998 <br /> <br />1. FOR VALUE. RECEIVED, the Town of Lyons ("BORROWER") promises to pay the State of Colorado Water <br />Conservation Board ("STATE"), the principal sum of Two Hundred Twenty Six Thousand Nine Hundred <br />Seventy Nine Dollars and Eighty Six Cents ($226,979.86) plus interest at the rate of Five percent (5%) per <br />annum for a term of twenty (20) years, p ~)\ t<>jWontract No. C153721 ("LOAN CONTRACT"). <br /> <br />2. The first payment of $18,213.45 shall be d~eftelber 9, 1998, and annually thereafter until the entire <br />principal sum, all accrued interesT'Jt1Ia~.. harges, if any, shall have been paid in full. <br /> <br />3. Payments shall be made payabl-J,.;I c~r'l<, er: nservation Board and mailed to 1313 Sherman <br />Street, Room 721, Denver, Colorado 80203. <br /> <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. <br /> <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. <br /> <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. <br /> <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 an Assignment of <br />Certificate of Deposit, cover certain revenues and accounts of the BORROWER. The LOAN CONTRACT, Security <br />Agreement and Assignment grant additional rights to the STATE, including the right to accelerate the maturity of <br />this Note in certain events. <br /> <br /> <br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security <br />Agreement or Assignment securing this Note occurs, the STATE may declare the entire outstanding principal <br />balance of the Note, all accrued interest, and any outstanding late charges immediately due and payable, <br />without notice or demand, and the indebtedness shall bear interest at the rate of 15% per annum from the date <br />of default. The STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure <br />within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for <br />purposes of this Promissory Note. <br /> <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 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 collection shalt <br />include all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel <br />for attendance at meetings of creditors' committees or other committees. <br /> <br />10. This Note shall be governed in all respects by the laws of the State of Colorado. <br /> <br />(SEAL) <br /> <br /> <br />Attest: / ~ <br /> <br />By' djLL~ ~I aWttltt4;J:/ <br />~ Teresa Andrews, Town Clerk <br /> <br />Attachment A to Loan Contract C153721 Amendment No.1 <br />