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<br />PROMISSORY NOTE
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<br />Date: September 1,2002 Initiation Date !l ~ ;,,51- J .' 1.. 003
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<br />1, FOR VALUE RECEIVED, the Town of Monument, Colorado, acting by and through the
<br />Town of Monument, Colorado, Water Enterprise ("BORROWER") promises to pay the
<br />State of Colorado Water Conservation Board ("CWCB"), the principal sum of Two
<br />Million Four Hundred Forty Three Thousand Dollars ($2,443,000) plus interest at the
<br />rate of 5,50% per annum for a term of thirty (30) years, pursuant to Loan Contract No,
<br />C150062, dated March 1, 2002, as amended September 1, 2002 ("LOAN CONTRACT").
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<br />2. This promissory note supersedes and replaces the promissory note dated March 1,
<br />2002, in the principal amount of $2,081,000,
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<br />3. Principal and interest shall be payable in equal installments of $168,091,57, with the
<br />first payment due and payable one year from the date that the CWCB determines that
<br />the project is substantially complete ("INITIATION DATE"), and annually thereafter until all
<br />principal, interest, and all late charges, if any, have been paid in full. All principal,
<br />interest, and late charges, if any, then remaining unpaid shall be due and payable
<br />thirty years after the INITIATION DATE.
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<br />4. Payments shall be made payable to the Colorado Water Conservation Board and
<br />mailed to 1313 Sherman Street, Room 721, Denver, Colorado 80203,
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<br />5. If the eWCB does not receive the annual payment within 15 calendar days of the due
<br />date, the State may impose a late charge in the amount of 5% of the annual payment.
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<br />6, This Note may be prepaid. in whole or in part at any time without premium or penalty.
<br />Any partial prepayment shall not postpone the due date of any subsequent payments
<br />or change the amount of such payments,
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<br />7, All payments received shall be applied first to late charges, if any, next to accrued
<br />interest and then to reduce the principal amount.
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<br />8. This Note is issued pursuant to the LOAN CONTRACT between the CWCB and the
<br />BORROWER, The LOAN CONTRACT creates security interests in favor of the eWCB to
<br />secure the prompt payment of all amounts that may become due hereunder, The
<br />security interests, evidenced by a Security Agreement dated March 1, 2002, cover
<br />certain revenues of the BORROWER, The LOAN CONTRACT and Security Agreement
<br />grant additional rights to the CWCB, including the right to accelerate the maturity of
<br />this Note in certain events, .
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<br />9. If any annual payment is not paid when due or any default under the LOAN CONTRACT
<br />or the Security Agreement securing this Note occurs, the CWCB may declare the
<br />entire outstanding principal balance of the Note, all accrued interest, and any
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<br />Attachment A to Contract C150062 Amendment No.1
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