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<br />'. .
<br />PROMISSORY NOTE
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<br />Principal Amount: $130,000
<br />Term: 3 Years
<br />Loan Contract: #C153740
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<br />Interest Rate: 4 0/.%
<br />Loan Payment: Years 1 & 2: $6,175; Year 3: $136,175
<br />Date: April 14, 1997
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<br />1, FOR V' ALUE RECEIV'ED, the ("BORROWER") promises to pay the State of Colorado Water Conservation Board
<br />("STATE"), the principal sum of $130,000 with interest ;)It the rate of 4 0/.% per annum on the outstanding principal
<br />balance for a term of three (3) years, payable as follows: the first two annual payments of interest-only in the
<br />amount of $6,175, and the third annual payment will be the entire principal amount plus interest for a payment of
<br />$136,175, or until paid in full, pursuant to Loan Contract #C153740 ("LOAN CONTRACT").
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<br />2, The first installment shall be due one year from the date the STATE determines that the PROJECT described in the
<br />LOAN CONTRACT has been substantially completed, and annually thereafter until the entire principal sum and any
<br />accrued interest shall have been paid in full.
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<br />3, All payments received shall be appiied first t~ ac~rued interest and then to the, retire,~Emt of the principal.
<br />Payments shall be made payable to the Col~rado W~ter Conservation Board andT3Ji.l~ 1313 Sherman Street,
<br />Room 721, Denver, Colorado 80203. ,'>.>' . ..,'.' :>.:;. ~ ","0....'
<br />.~; ::::~ " ,'--- ...::-;...:::.'~= .~~
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<br />4, This Note may be prepaid in whole or in part ~ady..time Without premium or penalty, with prepayments applied first
<br />to any accrued interest and then to reduce the principal amount. Any partial prepayment shall not postpone the
<br />due date of any subsequent payments or change the amount of such payments.
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<br />5, This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN CONTRACT
<br />creates security interests in favor of the STATE to secure the prompt payment of all amounts which may become
<br />due hereunder. The security interests, evidenced tly a Security Agreement dated April 14, 1997, and an
<br />Assignment of Certificate of Deposit dated April 14, 1997, cover certain revenues and accounts of the BORROWER.
<br />The LOAN CONTRACT, Security Agreement and AssignrTlent grant additional rights to the STATE, including the right
<br />to accelerate the maturity of this Note in certain events,
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<br />6, If any payment of principal or interest is not paid promptly when due or any default under the LOAN CONTRACT or
<br />the Security Agreement or Assignment securing this Note occurs, the STATE may declare the entire outstanding
<br />principal balance of the Note, and all accrued interest, immediately due and payable, without notice or demand,
<br />and the indebtedness shall bear interest at the rate of 16% per annum from the date of default.
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<br />7, 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 attomey fees, In the event of any bankruptcy or similar proceedings, costs of collection shall include all
<br />costs and attomey fees incurred in connection with sucn proceedings, including the fees of counsel for attendance
<br />at meetings of creditors' committees or other committee:>,
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<br />8, This Note shall be govemed in all respects by the laws of the State of Colorado,
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<br />By
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<br />
<br />Atte
<br />I
<br />/
<br />B~.
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<br />Appendix 2 to Contract#C153740
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