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<br />Promissory Note
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<br />Date: November 1, 2001
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<br />1. FOR VALUE RECEIVED, the San Luis Valley Irrigation District ("BORROWER") promises to pay the State of
<br />Colorado Water Conservation Board ("CWCB"), the' principal sum of Five Hundred Twenty Five
<br />Thousand Six Hundred Forty and 47/100 Dollars ($525,640.47) pius interest at the rate of Five Percent
<br />(5%) per annum for a term of Twenty Nine (29) years, pursuant to Loan Contract No. C153478 dated
<br />November 14,1986, as amended May 11,1987, April 26, 1988, April 24, 1989, and November 1, 2001
<br />("LOAN CONTRACT").
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<br />2. This Promissory Note replaces and supersedes the repayment terms of Paragraph A.11 of LOAN
<br />CONTRACT.
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<br />3. Principal and interest shall be payable in equal installments of $34,716.20, with the first payment due and
<br />payable on December 1, 2001, and annually thereafter until all principal and interest have been paid in
<br />full. All principal and interest then remaining unpaid shall be due and payable 29 years thereafter.
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<br />4. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313
<br />Sherman Street, Room 721, Denver, Colorado 80203.
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<br />5. This Note may be prepaid in whole or in part at any time without premium or penalty. Any partial
<br />prepayment shall not postpone the due date of any subsequent payments or change the amount of such
<br />payments.
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<br />6. All payments received shall be applied first to accrued interest and then to reduce the principal amount.
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<br />7. This Note is issued pursuant to the LOAN CONTRACT between the CWCB and the BORROWER. The LOAN
<br />CONTRACT creates security interests in favor of the CWCB to secure the prompt payment of all amounts
<br />that may become due hereunder. The security interests, evidenced by a Deed of Trust dated October 5,
<br />1988, recorded in the Hinsdale County, Reception No. 80458, Book 129, Pages 475-477, and revised by
<br />Amended Deed of Trust dated November 1, 2001, in the principal amount of $525,640.47, cover certain
<br />property of the BORROWER. The LOAN CONTRACT and Deed of Trust grant additional rights to ~he CWCS,
<br />including the right to acceierate the maturity of this Note in certain events.
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<br />8. - -If any-annual-payment -isI1ot- paid-wh,mdue-o,any-defaulnnder-tl1etOAN-COI'JTRACT-or-Deeaof Trust
<br />, securing this Nofe occurs, tl1eCWCS-may-deciare \lie entireoutsbindlng j:irincipal'l:ialance of the-Note
<br />and all accrued interest immediately due and payable, and the indebtedness shall bear interest at the
<br />rate of 7% per annum from the date of default. The CWCS shall give the BORROWER written notice of
<br />any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before
<br />the BORROWER shall be considered in default for purposes of this Promissory Note.
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<br />9. The BORROWER, any guarantor, and any other person who is now or may hereafter become primariiy or
<br />secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or
<br />interest thereon is not paid when due or if suit is brought, then it shall pay all reasonable costs of
<br />collection; including reasonable attorney-fees, In the even! of any bankruptcy or similar proceedings,
<br />costs of collection shall include all costs and attorney fees incurred in connection with such proceedings,
<br />including the fees of counsel for attendance at meetings of creditors' committees or other committees.
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<br />10. This Note shall be governed in all respects by the laws of the State of Colorado.
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<br />BORROWER: San Luis Valley Irrigation District
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<br />By A.: /,rj y t-l/. '7(:) .......,....,K..
<br />David W. Graham, President
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<br />(SEAL)
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<br />Attest: i
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<br />By ~ ~ /A~4/'
<br />Secretary
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<br />Appendix B to Contract C153478 Amendment No.4
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