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<br />Promissory Note
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<br />Date December 14, 2000 Date of ComPletion.JJ/3.CFnf5FJ2 .1.) 2/JO;
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<br />1, FOR VALUE RECElvED,1he, Tunnel Water Company ("BORROWER") promises to pay the State of Colorado
<br />Water Conservation Board ("STATE"), the principal sum of One Miilion Six Hundred Thousand Dollars
<br />($1,600,000) plus interest at the rate of 4,5% per annum for a repayment term of thirty (30) years, pursuant to
<br />Loan Contract No, C150052 ("LOAN CONTRAcT'),
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<br />2. Principal and interest shall be payable in equal installments of $98,226.47, with the first payment due and
<br />payable one year from the date that the State determines that the project is substantially complete, and annually
<br />thereafter until all principal, interest, and all late charges, if any, have been paid in full, All principal, interest, and
<br />late charges, if any, then remaining unpaid shall be due and payable 30 years thereafter,
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<br />3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman
<br />Street, Room 721, Denver, Colorado 80203,
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<br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may
<br />impose a late charge in the amount of 5% of the annual payment.
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<br />5, This Nole may be prepaid in whole or in part at any time without premium or penalty, Any partial prepayment
<br />shall not postpone the due date of any subsequent payments or change the amount of such payments.
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<br />6, All payments received shall be applied first to late charges, If any, next to accrued interest and then to reduce
<br />the principal amount. .
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<br />7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN
<br />'CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that
<br />may become due hereunder. The security interests, evidenced by a Security Agreement and a Deed of Trust of
<br />even date and loan amount, cover certain revenues and property of the BORROWER. The LOAN CONTRACT,
<br />Security Agreement, and Deed of Trust grant additional rights to the STATE, including the right to accelerate the
<br />maturity of this Note in certain events.
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<br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACTor the Security Agreement
<br />or Deed of Trust or Assignments securing this Note occurs, the STATE may declare the entire outstanding
<br />. principal balance of the Note, all accrued interest, and any outstanding late charges immediately due and
<br />payable, and the indebtedness shall bear interest at the rate of 7% per annum from the date of default. The
<br />STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure within thirty
<br />(30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this
<br />Promissory Note.
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<br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or
<br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest
<br />thereon is not paid when due or if suit is brought, then it shall pay all reasonable costs of collection, including
<br />reasonable attorney fees, In the event of any bankruptcy or similar proceedings, costs of collection shall include
<br />all costs and attorney fees incurred in connection with such proceedings, including' the fees of counsel for
<br />attendance at meetings of creditors' committees or other committees,
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<br />" :_9~"T~ffii~;~~all be governed in all respects by the laws of the State.(l.2olorado.
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<br />.,:;,c."'\,....,........,cCA.,./.. BORROWER: ^ Tunnel Water Company, a Colorado
<br />/.,;$.-" ..; .:)::.. >..:O:;};' nonprofit corporation
<br />."i;:: ..~ ~" <:~~f;j .L In. /J
<br />:'(r::":":,,,,,,"/'~~;iN, By. <-..{ ~
<br />'!'~'ii:,. ,::.' '. . " ;j., Fred Walker. President
<br />. :.~;S~!te,~!;.:,:::,;:~}2~;:::'<'
<br />'t7'1;lY''''''''" --
<br />. """ " "'<l:orporate Secretary
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<br />Appendix 2 to Loan Contract C150052
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