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<br />PROMISSORY' NOTE
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<br />Date tV~.J 4, 1998 Date of Substantial ComPletion1n~ 7, JC1QCj
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<br />1, FOR VALUE RECEIVED, the Greeley and LDveland Irrigation CDmpany ("BORROWER") promises tD pay the
<br />State of ColDradD Water ConservatiDn Board ("STATE"), the principal sum of $308,000 plus interest at the rate of
<br />4,21 percent per annum fDr a term of 30 years, pursuant to Loan CDntract No, C153835 ("LOAN CONTRACT"),
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<br />2. The first payment of $18,268,60 shall be due Dne year frDm the date that the State determines that the prDject is
<br />substantially cDmplete, 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 tD the CDIDradD Water ConservatiDn 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 impose
<br />a late charge in the amount of 5% of the annual payment.
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<br />5, This NDte may be prepaid in whDle or in part at any time without premium Dr penalty, MY partial prepayment
<br />shall not postpDne 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 the
<br />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 may
<br />becDme due hereunder, The security interests, evidenced by a Security Agreement and a Deed of Trust cover
<br />certain revenues and real property Dr water rights of the BORROWER, The LOAN CONTRACT, Security Agreement
<br />and Deed of Trust grant additiDnal rights to the STATE, including the right tD accelerate the maturity of this Note in
<br />certain events,
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<br />8, If any annual payment is nDt paid when due or any default occurs under the LOAN CONTRACT or the Security
<br />Agreement or Deed of Trust securing this Note, the STATE may declare the entire outstanding principal balance of
<br />the Note, all accrued interest, and any outstanding late charges immediately due and payable, without notice Dr
<br />demand, and the indebtedness shall bear interest at the rate Df 15% per annum from the date of default. The
<br />STATE shall give the BORROWER written notice Df any alleged default and an opportunity tD cure within thirty
<br />(30) days of receipt of such notice before the BORROWER shall be considered in default for purpDses of this
<br />Promissory Note,
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<br />9, The BORROWER, any guarantDr, and any other person who is nDW Dr may hereafter become primarily or
<br />secondarily liable for the payment of this Note or any portion thereDf hereby agree that if this Note or interest
<br />thereon is not paid when due or suit is brought, then it shall pay all reasDnable costs of collection, including
<br />reasonable attomey fees, In the event of any bankruptcy or similar proceedings, costs of collection shall include
<br />all costs and attorney fees incurred in connection with such proceedings, including the fees of counsel for
<br />attendance at meetings of creditors' committees or other committees,
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<br />10, This Note shall be governed in all respects by the laws of the State of Colorado,
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<br />BORROWER: Greeley and Loveland Irrigation Company,
<br />a Colorado nDnprofit corpDratiDn
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<br />(SEAL)
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<br />~~r.~~1/-'
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<br />David Bernhardt, President
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<br />Attest:
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<br />BY~A'-L.-~~~
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<br />Ron d F, Brinkman, CDrpDrate Secretary
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<br />Appendix 2 to Loan Contract C153835
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