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PROMISSORY NOTE <br /> Date Ste, 17 , 1998 Date of Substantial Completion <br /> 1. FOR VALUE RECEIVED, The Western Mutual Ditch Company ("BORROWER") promises to pay the State of <br /> Colorado Water Conservation Board ("STATE"), the principal sum of $100,000 plus interest at the rate of 3.75 <br /> percent per annum for a term of 20 years, pursuant to Loan Contract No. C153857 ("LOAN CONTRACT"). <br /> 2. The first payment of$7196.21 shall be due one year from the date that the State determines that the project is <br /> substantially complete, and annually thereafter until the entire principal sum, all accrued interest, and all late <br /> charges, if any, shall have been paid in full. <br /> 3. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman <br /> Street, Room 721, Denver, Colorado 80203. <br /> 4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may impose <br /> a late charge in the amount of 5%of the annual payment. <br /> 5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial prepayment <br /> shall not postpone the due date of any subsequent payments or change the amount of such payments. <br /> 6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce the <br /> principal amount. <br /> 7. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN <br /> CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that may <br /> become due hereunder. The security interests, evidenced by a Security Agreement, an Assignment of Certificate <br /> of Deposit, and an Assignment of Deposit Account as Security, cover certain revenues and accounts of the <br /> BORROWER. The LOAN CONTRACT, Security Agreement and Assignments grant additional rights to the STATE, <br /> including the right to accelerate the maturity of this Note in certain events. <br /> 8. If any annual payment is not paid when due or any default under the LOAN -s) W- t• ,th c49r ment or <br /> the Assignments securing this Note occurs, the STATE may declare the entire c�'u`tt. 'n r c - «:,a ce of the <br /> Note, all accrued interest, and any outstanding late charges immediately due and payable, withou notice or <br /> demand, and the indebtedness shall bear interest at the rate of 15% per annum from the date of default. The <br /> STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure within thirty <br /> (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this <br /> Promissory Note. <br /> 9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or <br /> secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest <br /> thereon is not paid when due or suit is brought, then it shall pay all reasonable costs of collection, including <br /> reasonable attorney fees. In the event of any bankruptcy or similar proceedings, costs of collection shall include <br /> all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for <br /> attendance at meetings of creditors'committees or other committees. <br /> 10. This Note shall be governed in all respects by the laws of the State of Colorado. <br /> BORROWER: The Western Mutual Ditch Company, <br /> a Colorado nonprofit corporation <br /> (SEAL ) ��.,pp <br /> By <br /> Frank Eckhardt, Jr., Presio!-nt <br /> Attest: (� <br /> By'74L -Jci `1 C CJataiyi <br /> Corporate Secretary <br /> Appendix 2 to Loan Contract C153857 <br />