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IF THIS FORM IS USED IN A CONSUMER CREDIT TRANSACTION, CONSULT LEGAL COUNSEL. THIS IS A LEGAL
<br />INSTRUMENT. IF NOT UNDERSTOOD, LEGAL, TAX OR OTHER COUNSEL SHOULD BE CONSULTED BEFORE SIGNING.
<br />U.S. $425,000.00
<br />PROMISSORY NOTE
<br />Durango, Colorado
<br />November 22_, 2006
<br />1. FOR VALUE RECEIVED, the undersigned (Borrower) promise(s) to pay Old Idaho Properties, LLC
<br />or order (Note Holder) the principal sum of $425,000.00 U.S. Dollars, with interest on the unpaid principal
<br />balance from November 13, 2006, until paid, at the rate of 7.6 percent per annum. Principal -and Accrued
<br />interest shall be payable at 4432 County Road 124, Hesperus, Colorado, 81326, or such other place as the
<br />Note Holder may designate, in monthly payments of Two Thousand Seven Hundred and Sixty -Two
<br />Dollars and Fifty Cents (U.S. $2,762.50), due on the first day of each month, beginning December 1, •
<br />2006.
<br />pfevidedThewevefrif ' , The entire principal amount outstanding and accrued interest thereon
<br />shall BALLOON and be due and payable on November 13, 2011.
<br />2. Borrower shall pay to the Note Holder a late charge of 10% of any payment not received by the Note
<br />Holder within 10 days after the payment is due.
<br />3. Payments received for application to this Note shall be applied first to the payment of late charges, if
<br />any, second to the payment of accrued interest at the rate specified below, if any, third, to accrued interest
<br />first specified above, and the balance applied in reduction of the principal amount hereof.
<br />4. If any payment required by this Note is not paid when due, or if any default under any Deed of Trust
<br />securing this Note occurs, the entire principal amount outstanding and accrued interest thereon shall at once
<br />become due and payable at the option of the Note Holder (Acceleration); and the Indebtedness shall bear
<br />Interest at the rate of 12 percent per annum from the date of default. The Note Holder shall be entitled to
<br />collect all reasonable costs and expenses of collection and /or suit, including, but not limited to reasonable
<br />attorneys' fees.
<br />5. Borrower may prepay the principal amount outstanding under this Note, in whole or in part, at any
<br />time without penalty cxccpt •. Any partial prepayment shall be applied against the principal amount
<br />outstanding and shall not postpone the due date of any subsequent payments or change the amount of such
<br />payments.
<br />6. Borrower and all other makers, sureties, guarantors, and endorses hereby waive presentment,
<br />notice of dishonor and protest, and they hereby agree to any extensions of time of payment and partial
<br />payments before, at, .or after maturity. This Note shall be the joint and several obligation of Borrower and all
<br />other makers, sureties, guarantors and endorsers, and their successors and assigns.
<br />7. Any notice to Borrower provided for in this Note shall be in writing and shall be given and be effective
<br />upon (1) delivery to Borrower or (2) mailing such notice by first -class U.S. mail, addressed to Borrower at the
<br />Borrower's address Stated below, or to such other address as Borrower may designate by notice to the Note
<br />Holder. Any notice to the Note Holder shall be in writing and shall be given and be effective upon (1) delivery
<br />to Note Holder or (2) by mailing such notice by first -class U.S. mail, to the Note Holder at the address stated
<br />in the first paragraph of this Note, or to such other address as Note Holder may designate by notice to
<br />Borrower.
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