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Apri12, 2012 <br />Mr. Kirk Russell <br />Finance Section <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />1580 Logan Street, Suite 600 <br />Denver, Colorado 80203 <br />Re: Loan Contract No. C150233 <br />Tom C. Hill <br />Dear Mr. Russell: <br />This letter is in reference to the above Loan Contract dated January <br />12, 2007, amended on May 30, 2008 and June 25, 2010, in the amount of <br />$8621540.00. The current balance is $741,119.62. <br />When we first obtained the loan, the payments were amortized over a <br />30 year period with annual payments of approximately $40,000. At that <br />time, the 2,300 acre Gore Pass Ranch was pledged as collateral for the loan. <br />A Conservation Easement was placed upon Gore Pass Ranch in June, 2008, <br />with the Colorado Division of Wildlife. In order for CWCB to subordinate, <br />it was then required that our property near Olathe, Colorado, be also pledged <br />as security, in addition to Gore Pass Ranch in Kremmling. The payments <br />were then to be amortized over 11 years with annual payments of <br />$96,023.58. In May of 2010, CWCB graciously allowed an interest only <br />payment of $16,414.57, which we made. In May, 2011, we made the full <br />payment of $96,023.58. <br />Our sincere intent is to sell Gore Pass Ranch and retire our loan with <br />CWCB. We have actively marketed the ranch since 2006. In the fall of <br />2008 we were actually negotiating a Contract to sell the ranch when the <br />economy fell and our buyer was unable to obtain the required financing to <br />purchase the ranch. We have lowered the purchase price of the ranch from <br />$3.5M in 2009, to $3.1M in 2010, and $2.75M in 2011. We are trying to <br />hang on to the ranch to obtain the best price possible as we believe that it is a <br />very valuable, productive ranch with old and substantial water rights. Under <br />the terms of the Conservation Easement, these water rights may never be <br />