C150057 Contract

• Contract/PO #: C150057
• Contractor Name: West Rhone Lateral Ditch Company
• Contract Type: Loan
• Water District: 72
• County: Mesa
• Bill Number: SPL
• Loan Projects - Doc Type: Contract Documents

Promissory Note

Date March 1, 2002 Date of Completion: September 1, 2001

FOR VALUE RECEIVED, the West Rhone Lateral Ditch Company ("BORROWER") promises to
pay the State of Colorado Water Conservation Board ("CWCB"), the principal sum of Forty
Nine Thousand Five Hundred Dollars ($49,500) plus interest at the rate of 3.5% per annum for
a term of thirty (30) years, pursuant to Loan Contract No. C150057 dated March 1, 2001, and
amended March 1, 2002 ("LOAN CONTRACT").

1. Principal and interest shall be payable in equal installments of $2,691.38, with the first
payment due and payable on September 1, 2002, and annually thereafter until all principal,
interest, and all late charges, if any, have been paid in full. All principal, interest, and late
charges, if any, then remaining unpaid shall be due and payable 30 years thereafter.

2. Payments shall be made payable to the Colorado Water Conservation Board and mailed to
1313 Sherman Street, Room 721, Denver, Colorado 80203.

3. If the CWCB does not receive the annual payment within 15 calendar days of the due date,
the CWCB may impose a late charge in the amount of 5% of the annual payment.

4. 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.

5. All payments received shall be applied first to late charges, if any, next to accrued interest
and then to reduce the principal amount.

6. This Note is issued pursuant to the LOAN CONTRACT between the CWCB and the
BORROWER. The LOAN CONTRACT creates security interests in favor of the CWCB to secure
the prompt payment of all amounts that may become due hereunder. The security
interests, evidenced by a Security Agreement, and an Assignment of Certificate of Deposit,
cover certain revenues and accounts of the BORROWER. The LOAN CONTRACT, Security
Agreement and the Assignment grant additional rights to the CWCB, including the right to
accelerate the maturity of this Note in certain events.

7. If any annual payment is not paid when due or any default under the LOAN CONTRACT or the
Security Agreement or Assignment securing this 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 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 thirty (30) days of
receipt of such notice before the BORROWER shall be considered in default for purposes of
this Promissory Note. .

8. 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 if 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

Exhibit A to Contract C150057 Amendment No.1