C150154 Contract 2

• Contract/PO #: C150154
• Contractor Name: Pine River - Bayfield Ditch Company
• Contract Type: Loan
• Water District: 31
• County: La Plata
• Loan Projects - Doc Type: Contract Documents

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.

9. 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 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.

10. The BORROWER and any co-signer or guarantor hereby agree that if this Note or
interest thereon is not paid when due or if suit is brought, then it shall pay all
reasonable costs of collection, including reasonable attorney fees. In the event of
any bankruptcy or similar proceedings, costs of collection shall include all costs
and attorney fees incurred in connection with such proceedings, including the fees
of counsel for attendance at meetings of creditors' committees or other
committees.

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11. This Note shall be governed in all respects by the laws of the State of Colorado.

BORROWER: THE PINE RIVER-BAYFIELD
DITCH COMPANY, A COLORADO NONPROAT
CORPORATION

By ti!

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Janet . nge, Corpo e Secre

Appendix A to Loan Contract C150154 Amendment No.1
Page 2 of 2