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Promissory Note Date December 1, 2000 1. For Value Received, the DeWeese-Dye Ditch and Reservoir Company ("BORROWER") promises to pay the State of Colorado Water Conservation Board ("STATE"), the principai sum of $585,000 plus interest at the rate of 4.00 percent per annum for a term of 30 years, pursuant to Loan Contract No. C153832 dated June 23, 1999, and amended November 27, 2000 ("LOAN CONTRACT"). 2. This Promissory Note repiaces a note dated April 20, 1999 in the amount of $734,000 pursuant to LOAN CONTRACT. This note was cancelled and voided and then released by Custer County Public Trustee on December 11,2000. The date of the Deed of Trust this note attaches to is April 20, 1999. 3. The first payment of $33,830.61 shall be due and payable on December 1, 2000, and annually thereafter until the entire principal sum, all accrued interest, and all late charges, if any, shall have been paid in full. 4. Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman Street, Room 721, Denver, Colorado 80203. 5. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may impose a late charge in the amount of 5% of the annual payment. 6. This 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. 7. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce the principal amount. 8. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN CONTRACT creates security interests in favor of the STATE to secure the prompt payment of all amounts that may become due hereunder. The security interests, evidenced by a Security Agreement and a Deed of Trust cover certain revenues and real property or water rights of the BORROWER. The LOAN CONTRACT, Security Agreement and Deed of Trust grant additional rights to the STATE, including the right to accelerate the maturity of this Note in certain events. 9. If any annual payment is not paid when due or any defauit occurs under the LOAN CONTRACT or the Security Agreement or Deed of Trust securing this Note, the STATE may deciare the entire outstanding principal balance of the Note, all accrued interest, and any outstanding late charges immediately due and payable, without notice or demand, and the indebtedness shall bear interest at the rate of 7% per annum from the date of default. The STATE shall give the BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days of receipt of such notice before the BORROWER shall be considered in default for purposes of this Promissory Note. 10. The BORROWER, any guarantor, and any other person who is now or may hereafter become primarily or secondarily liable for the payment of this Note or any portion thereof hereby agree that if this Note or interest thereon is not paid when due or 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. 11. This Note shall be governed in all respects by the laws of the State of Colorado. BORROWER: DeWeese-Dye Ditch and Reservoir Company By <If?~ [r: ~ ./ Ronald D. Dorn, President (SEAL) Attest: By /L f11. ) J~~ Rose M. Moschetti, Corporate Secretary Appendix A to Loan Contract C153832 Amendment No.1