C153808 Contract

• Contract/PO #: C153808
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Bill Number: ARA
• Loan Projects - Doc Type: Contract Documents

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PROMllSSOR1r' NOTE.

Principal Amount:
Term:
Loan Contract No.:

$590,590
40 Years
C 153808

Interest Rate:
Loan Payment:
Date:

3%
$25,550.33
February2Q1998

1. FOR" ALUE RECEIV'ED, The Arkansas Groundwater Users Association ("BORROWER") promises to pay the State
of Colorado Water Conservation Board ("STATE"), the principal sum of $590,590 with annual payments of
$25,550.33 based on the interest rate of 3% percent per annum on the outstanding principal balance for a term of
40 years, or until paid in full, pursuant to Loan Contract No. C153808 ("LOAN CONTRACT').

2. The first installment shall be due one year from the d<lte the STATE determines that the PROJECT described in the
LOAN CONTRACT has been substantially completed, aM annually thereafter until the entire principal sum and <lny
accrued interest shall have been paid in full.

3. All payments received shall be applied first to accrued interest and then to the retirement of the principal.
Payments shall be made payable to the Colorado Water Conservation Board and mailed to 1313 Sherman Street,
Room 721, Denver, Colorado 80203.

4. This Note may be prepaid in whole or in part at any time without premium or penalty, with prepayments applied first
to any accrued interest and then to reduce the princibal amount. Any partial prepayment shall not postpone the
due date of any subsequent payments or change the <lmount of such payments.

5. This Note is issued pursuant to the LOAN CONTRACT between the STATE and the BORROWER. The LOAN CONTRACT
creates security interests in favor of the STATE to secure the prompt payment of all amounts which may become
due hereunder. The security interests, evidenced by Security Agreements, a Deed of Trust and a Stock
Assignment, cover certain revenues, accounts and W<iter rights of the BORROWER. The LOAN CONTRACT, Security
Agreements, Deed of Trust and Stock Assignment grant additional rights to the STATE. including the right to
accelerate the maturity of this Nole in certain events.

6. If any payment of principal or interest is not paid prOmptly when due or any default under the LOAN CONTRACT the
Security Agreements or Deed of Trust securing this Note occurs, the STATE may declare the entire outstanding
principal balance of the Note, and all accrued intere~t, immediately due and payable, without notice or demand,
and the indebtedness shall bear interest at the rate of 15% per annum from the date of default.

7. The BORROWER, any guarantor, and any other pEirson who is now or may hereafter become primarily or
secondarily liable for the payment of this Note or al'1y portion thereof hereby agree that if this Note or interest
thereon is not paid when due or 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 attorney fees incurred in connection with s~ch proceedings, including the fees of counsel for attendance
at meetings of creditors' committees or other committE!es.

8. This Note shall be govemed in all respects by the laws of the State of Colorado.

BORROWER: Arkansas Groundwater Users Association,
a Colorado nonprofit corporation

By

Attest(~

By -<- ~~..

Keith Be3ttie, Corporate Secreta"J

Appendix 2 to Loan Contract No. C153808