C150113 contract

• Contract/PO #: C150113
• Contractor Name: Lake Arrowhead Water Association
• Contract Type: Loan
• Water District: 0
• County: Weld
• Loan Projects - Doc Type: Contract Documents

PROMISSORY NOTE

Date: January 1, 2004

Borrower: Lake Arrowhead Water Association

Principal Amount: $ 300,000 .

Interest Rate: 4.25% per annum

Term of Repayment: 30 years

Loan Contract No.: C150113, dated January 1, 2004

Loan Payment: $17,879.47

* Payment Initiation Date and Maturity Date fields are filled in after the project has been substantially .
completed.

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. Principal and interest shall be payable in equal Loan Payments, with the first payment due and
payable one year from Payment Initiation Date (the date the CWCB determines that the project is
substantially complete), 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.

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

4. 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.

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. Said security interests are evidenced by a Security
Agreement and Deed of Trust ("Security Instruments") of even date and amount and cover certain
revenues, real property, water rights and/or accounts of the BORROWER. The LOAN CONTRACT and
Security Instruments 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 Instruments 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

Appendix 2 to Loan Contract C150113