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, . Promissory Note Date: July1,2001 Date of Completion tlc..+II....... J I 2.()~Z 1. FOR VALUE RECEIVED, the Owl Creek Supply and Irrigation Company ("BORROWER") promises to pay the State Df Colorado Water Conservation Board ("CWCB"), the, principal sum of Four Hundred Fifty Thousand Dollars ($450,000) plus interest at the rate of four percent (4%) per annum for a term of thirty (30) years, pursuant to Loan Contract No, C150034 ("LOAN CONTRACT"), 2, Principal and interest shall be payable in equal installments of $26,023.54, with the first payment due and payable one year from the date that the CWCB determines that the project is substantially complete, arid 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 within 30 years after the first payment. . 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 orin part at any time without premium Dr 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 NDte 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 or Assignment of Certificate of Deposit, cover certain revenues and real property of the BORROWER. . The LOAN CONTRACT, Security Agreement, Deed of Trust and Assignment grant additional rights to the CWCB, including the right to accelerate the maturity of this Note in certain events. a, If any annual payment is not paid when due or any default under the LOAN CONTRACT or the Security Agreement or Deed of Trust or Assignment securing this Note occurs, the CWCS 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, " r ~; ;:. il , ," Appendix 2 to Loan Contract C150034