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APPENDIX 3,PROMISSORY NOTE Date: February 19,2019 Borrower: Left Hand Ditch Company Total Loan Amount: $671,650.00 Interest Rate: 2.50%per annum Term of Repayment: 30 years Loan Contract Number: CT2019-3463 Annual Loan Payment: $32,089.85 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 five percent(5%)of the annual payment if the CWCB does not receive the annual payment within sixty(60) calendar days of the due dat . At the discretion of the CWCB,and if the Borrower requests in writing with sufficient justification,the late Tee 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 thorrower. 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:the Security Agreement and Deed of Trust("Security Instruments") of even date and amount herewith and cover the Pledged Revenues. a Contract and Security Instruments grant additional rights to the CWCB,including the right to accelerate the aturity 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 seven percent(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 Page 1 of 2 Contract Number:CT2019-3463 Appendix 3