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APPENDIX 3, PROMISSORY NOTE Date: November 21,2018 Borrower: Fruitland Irrigation Company Total Loan Amount: $1,746,290.00 Interest Rate: 2.00%per annum Term of Repayment: 40 years Loan Contract Number: CT2019-2848 Annual Loan Payment: $63,836.94 Payment Initiation Date*: (To be filled in at Substantial Completion of Project) Maturity Date*: (To be filled in at Substantial Completion of Project) *Payment Initiation Date and Maturity Date fields are filled in after the project has been 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 Contract and this Promissory Note. 2. Principal and interest shall be payable in annual equal payments as set forth in"Annual Loan Payment"above,with the first payment due and payable one year from the 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 718, 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 60 calendar days of the due date.At the discretion of the CWCB,and if the Borrower requests in writing with sufficient justification,the late fee may be waived by the CWCB. CWCB will review the request from the Borrower,and may,in its sole discretion,choose to waive the late fee. 5. This Promissory 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. This Promissory Note is issued pursuant to the Contract between the CWCB and the Borrower. The 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: Security Agreement and Deed of Trust("Security Instruments") of even date and amount herewith and cover the Pledged Revenues. The Contract and Security Instruments grant additional rights to the CWCB,including the right to accelerate the maturity of this Promissory Note in certain events. 7. If any annual payment is not paid when due or any default under the Contract or the Security Instruments securing this Promissory 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 sixty(60)days of receipt of such notice before the Borrower shall be considered in default for purposes of this Promissory Note. 8. The Borrower hereby agrees that if this Note or interest thereon is not paid when due or if suit is brought,then it shall pay all reasonable costs of collection, including reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of collection shall include all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for attendance at meetings of creditors'committees or other committees. 9. This Promissory Note is authorized pursuant to and in accordance with the Constitution of the State of Colorado and all Page 1 of 2 Appendix 3 Contract Number:CT2019-2848