PROJC01423 ‎(2)‎

• Contract/PO #: C150011
• Contractor Name: Consolidated Mutual Water Company, The
• Contract Type: Loan
• Water District: 7
• County: Jefferson
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Project Completion Letter

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Promissory Note

Date April 26, 2000 , Date of Completion f'1A~(lJt I, 2-0CY2.

1. For value received, The Consolidated Mutual Water Company (BORROWER), a Colorado
nonprofit corporation, promises to pay the State of Colorado Water Conservation Board
(STATE), the principal sum of Sixteen Million Three Hundred Thousand Dollars
($16,300,000.00) plus interest thereon from the date of substantial completion at the rate of
4.85% per annum for a term of ten (10) years, pursuant to Loan Contract No. C150011, as
amended by Contract Amendment No.1 (LOAN CONTRACT).

2. Principal and interest shall be payable in equal installments of $2,095,575.23 each with the
first payment due and payable one year from the date that the State determines that the
project is substantially complete, and annually thereafter until all principal, interest and late
charges, if any, have been fully paid. All principal, interest, and late charges, if any, then
remaining unpaid shall be due and payable 10 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 STATE does not receive the annual payment within 15 calendar days of the due date,
the State 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 STATE and--the BORROWER.
The LOAN CONTRACT creates security interests in favor of the STATE 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, cover certain revenues and water rights of the
BORROWER. The LOAN CONTRACT, Security Agreement and Deed of Trust grant additional
rights to the STATE, 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 STATE 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 10% per annum from the date of default. The STATE 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.

Attachment 2 to Contract C150011 Amendment No.1