PROJC01825 ‎(2)‎

• Contract/PO #: C150234
• Contractor Name: Headgate 396 Lateral Corporation
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Loan Projects - Doc Type: Contract Documents

PROMISSORY NOTE
Date: April 1, 2008

Borrower: Headgate 396 Lateral Corporation

Principal Amount:
Interest Rate:
Term of Repayment:
Loan Contract No.:
Loan Payment:
Payment Initiation Date:
Maturity Date:

$128,991.20

2.50% per annum
30 years
C150234, dated February 26, 2007
$6,162.90
December 1, 2007
December 1, 2037

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.

2. This Promissory Note replaces and supersedes the Promissory Note dated
February 26, 2007, in the principal amount of $232,300.

3. Principal and interest shall be payable in equal Loan Payments, with the first
payment due and payable one year from Payment Initiation, 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.

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

5. 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.

6. 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.

7. All payments received shall be applied first to late charges, if any, next to
accrued interest and then to reduce the principal amount.

8. 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
Appendix A to Loan Contract C150234 Amendment No.1
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