PROJC01456 ‎(2)‎

• Contract/PO #: C150096
• Contractor Name: Upper Platte and Beaver Canal Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Bill Number: SPL
• Loan Projects - Doc Type: Project Completion Letter

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PROMISSORY NOTE

Date: June 1, 2002

Date of Completion Sepf~j,__ 1)20b2..

',1. FOR VALUE RECEIVED, the Upper Platte and Beaver Canal Company ("BORROWER")
promises to pay the State of Colorado Water Conservation Board ("CWCB"), the
principal sum of eighty three thousand Dollars ($83,000) plus interest at the rate of
two and one quarter percent (2.25%) per annum for a term of ten (10) years,
pursuant to Loan Contract No. C150096 dated June 1, 2002 ("LOAN CONTRACT").

2. Principal and interest-shall be payable in equal installments of $9,361.38, with the
first payment due and payable one year from the date that the CWCB determines
that the project is substantially complete, and annually thereafter until all principal,
interest, and late charges, if any, have been paid in full, with all such principal,
interest, and late charges, required to be paid within 10 years.

3. Payments shall be made to the Colorado Water Conservation Board at 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 or in part at any fime 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 iSlssued pursuant to the LOAN CONTRACT between theCWCB and the
BORROWER. The LOAN CONTRACT creates security interests in favor of the CWCS 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, both of
even date and amount, cover certain real and personal property, including contract
rights, of the BORROWER. The LOAN CONTRACT, Security Agreement and Deed of
Trust 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,
Security Agreement or Deed of Trust 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 defaultforpurposes of this Promissory Note. '

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Appendix 2 to Loan Contract C150096