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<br />PROMISSORY NOTe
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<br />Date: June 1, 2002 Date of Completion Se to f...... j,..... / J 2 0 t> Z.
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<br />1. FOR VALUE RECEIVED, the Upper Platte and Beaver Canal Company ("BORROWER")
<br />promises to pay the State of Colorado Water ConseNation Board ("CWCS"), the
<br />principal sum of eighty three thousand Dollars ($83,000) plus interest at the rate of
<br />two and one quarter percent (2,25%) per annum for a term of ten (10) years,
<br />pursuant to Loan Contract No. C150096 dated June 1, 2002 ("LOAN CONTRACT"),
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<br />2, Principal and interest shall be payable in equal installments of $9,361,38, with the
<br />first payment due and payable one year from the date that the CWCS determines
<br />that the project is substantially complete, and annually thereafter until all principal,
<br />interest, and late charges, if any, have been paid in full, with all such principal,
<br />interest, and late charges, required to be paid within 10 years,
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<br />3, Payments shall be made to the Colorado Water ConseNation Board at 1313
<br />Sherman Street, Room 721, Denver, Colorado 80203,
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<br />4, If the CWCB does not receive the annual payment within 15 calendar days of the due
<br />date, the CWCB may impose a late charge in the amount of 5% of the annual
<br />payment.
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<br />5, This Note may be prepaid in whole or in part at any time without premium or penalty,
<br />Any partial prepayment shall not postpone the due date of any subsequent
<br />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
<br />interest and then to reduce the principal amount.
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<br />7, This Note iSlssued pursuant to the LOAN CONTRACT between the CWCB and the
<br />BORROWER, The LOAN CONTRACT creates security interests in favor of the CWCB to
<br />secure the prompt payment of all amounts that may become due hereunder, The
<br />security interests, evidenced by a Security Agreement and a Deed of Trust, both of
<br />even date and amount, cover certain real and personal property, including contract
<br />rights, of the BORROWER, The LOAN CONTRACT, Security Agreement and Deed of
<br />Trust grant additional rights to the CWCB, including the right to accelerate the
<br />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,
<br />Security Agreement or Deed of Trust securing this Note occurs, the CWCB may
<br />declare the entire outstanding principal balance of .the Note, all accrued interest, and
<br />any outstanding late charges immediately due and payable, and the indebtedness
<br />shall bear interest at the rate of 7% per annum from the date of default. The CWCB
<br />shall give the BORROWER written notice of any alleged default and an opportunity to
<br />cure within thirty (30) days of receipt of such notice before the BORROWER shall be
<br />considered in default for purposes of this Promissory Note,
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<br />Appendix 2 to loan Contract C150096
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