C150082 Contract

• Contract/PO #: C150082
• Contractor Name: Consolidated Home Supply Ditch and Reservoir Company, The
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Loan Projects - Doc Type: Contract Documents

PROMISSORY NOTE

Date February 1, 2002 Date of Completion

1. FOR VALUE RECEIVED, the Consolidated Home Supply Ditch and Reservoir Company
("BORROWER") promises to pay the State of Colorado Water Conservation Board
("CWCB"), the principal sum of Nine Hundred Forty Three Thousand Dollars ($943,000)
plus interest at the rate of three and one half percent (3.5%) per annum for a term of thirty
(30) years, pursuant to Loan Contract No. C150082 ("LOAN CONTRACT").

2. Principal and interest shall be payable in equal installments of $51,272.17, with the
first payment due and payable one year from the date that the CWCB determines that the
project is substantially complete, and annually thereafter until all principal, interest, and all
late charges, if any, have been paid in full. All principal, interest, and late charges, if any,
then remaining unpaid shall be due and payable 30 years thereafter.

3. Payments shall be made payable to the Colorado Water Conservation Board and
mailed to 1313 Sherman Street, Room 721, Denver, Colorado 80203,

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

5. 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.

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 and a Deed of Trust, dated
February 1,2002, cover certain revenues and real property of the BORROWER. The LOAN
CONTRACT, Security Agreement and Deed of Trust 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 Agreement or Deed of Trust securing this Note occurs, the ewes 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 shall be considered in default
for purposes of this Promissory Note.

9, The BORROWER, any guarantor, and any other person who is now or may hereafter

Appendix 2 to Loan Contract C150082