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<br />'I
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<br />Promissory Note "
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<br />Date l\;vjrL(',k:~:~ ,2000 Date of Completion 5~-k.....b...~ // 2000
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<br />1. For Value Received, the Chilcott Ditch Company ("BORROWER") promises to pay the State of Colorado Water
<br />ConseNation Board ("STATE"), the principal sum of $250,000 plus interest at the rate of 4 percent per annum for
<br />a term of 30 years, pursuant to Loan Contract No, C150029 ("LOAN CONTRACT"),
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<br />2. The first payment of $14,457,52 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,
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<br />3. Payments shall be made payable to the Colorado Water ConseNation Board and mailed to 1313 Sherman
<br />Street, Room 721, Denver, Colorado 80203,
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<br />4. If the STATE does not receive the annual payment within 15 calendar days of the due date, the State may
<br />impose a late charge in the amount of 5% of the annual payment.
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<br />5. This Note may be prepaid in whole or in part at any time without premium or penalty, My partial prepayment
<br />shall not postpone the due date of any subsequent payments or change the amount of such payments.
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<br />6. All payments received shall be applied first to late charges, if any, next to accrued interest and then to reduce
<br />the principal amount.
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<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
<br />may become due hereunder, The security interests, evidenced by a Security Agreement, two Assignments,
<br />and a deed of trust, cover certain revenues, accounts and other property of the BORROWER, The LOAN
<br />CONTRACT, Security Agreement, Assignments and deed of trust grant additional rights to the STATE, including
<br />the right to accelerate the maturity of this Note in certain events.
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<br />8. If any annual payment is not paid when due or any default under the LOAN CONTRACT, the Security Agreement,
<br />Assignments or deed of trust securing this Note occurs, the STATE may declare the entire outstanding principal
<br />balance of the Note, all accrued interest, and any outstanding late charges immediately due and payable, and
<br />the indebtedness shall bear interest at the rate of 7% per annum from the date of default. The STATE shall give
<br />the BORROWER written notice of any alleged default and an opportunity to cure within thirty (30) days of
<br />..j<receipt of such notice before the BORROWER shall be considered in default for purposes of this Promissory
<br />'Note,
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<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 if 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
<br />include all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel
<br />for attendance at meetings of creditors' committees or other committees,
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<br />10. This Note shall be govemed in all respects by the laws of the State of Colorado,
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<br />BORROWER: The Chilcott Ditch Company, a Colorado
<br />nonprofit corporation
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<br />By ~, ::7~
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<br />Glen ~ent
<br />
<br />(S EAL)
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<br />Attest:
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<br />By i57M~'
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<br />. Corporate Secretary
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<br />Appendix 2 to Loan Contract C150029
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