PROJC01742

• Contract/PO #: C150165
• Contractor Name: Lower Platte and Beaver Canal Company
• Contract Type: Loan
• Water District: 1
• County: Morgan
• Loan Projects - Doc Type: Project Completion Letter

PROMISSORY NOTE

Date: February 1, 2004
Borrower: The Lower Platte and Beaver Canal Co.
Principal Amount: $ 313,605.00
Interest Rate: 2.5% per annum
Term of Repayment: 30 years

Loan Contract No.:

Loan Payment:

Payment Initiation Date*:

Maturity Date*:

* Payment Initiation Date
substantially completed.

1. FOR VALUE RECEIVED, the BORROWER promises to pay the Colorado Water Conservation Board
("CWCB"), the Principal Amount plus Interest for the Term of Repayment, pursuant to the LOAN
CONTRACT and this promissory note.

C150165, dated
$14,983.31
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and Maturity Date fields are filled in after the project has been

2. Principal and interest shall be payable in equal Loan Payments, with the first payment due and
payable one year from Payment Initiation Date (the date the CWCB determines that the project
is substantially complete), and annually thereafter. All principal, interest, and late charges, if
any, then remaining unpaid shall be due and payable on or before the Maturity Date.

3. Payments shall be made to the Colorado Water Conservation Board at 1313 Sherman Street,
Room 721, Denver, Colorado 80203.

4. The CWCB may impose a late charge in the amount of 5% of the annual payment if the CWCB
does not receive the annual payment within 15 calendar days of the due date.

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 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. 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.

Appendix 2 to Loan Contract C150165