Document:

Exhibit
4.03

 

SUPPLEMENTAL
INDENTURE

 

(Dated as
of August 1, 2005)

 

 

PUBLIC
SERVICE COMPANY OF COLORADO

 

TO

 

U.S. BANK
TRUST NATIONAL ASSOCIATION,

As Trustee

 

 

Creating an
Issue of First Mortgage Bonds,

Collateral Series P

 

(Supplemental
to Indenture dated as of December 1, 1939, as amended)

 

 

SUPPLEMENTAL INDENTURE,
dated as of August 1, 2005, between PUBLIC
SERVICE COMPANY OF COLORADO, a corporation organized and existing
under the laws of the State of Colorado (the “Company”), party of the first
part, and U.S. BANK TRUST NATIONAL
ASSOCIATION (formerly First Trust of New York, National Association),
a national banking association, as successor trustee (the “Trustee”) to Morgan
Guaranty Trust Company of New York (formerly Guaranty Trust Company of New York),
party of the second part.

 

WHEREAS, the Company
heretofore executed and delivered to the Trustee its Indenture, dated as of December 1,
1939 (the “Principal Indenture”), to secure its First Mortgage Bonds from time
to time issued thereunder; and

 

WHEREAS, the Company
has heretofore executed and delivered to the Trustee the Supplemental
Indentures referred to in Schedule A hereto for certain purposes,
including the creation of series of bonds, the subjection to the lien of the
Principal Indenture of property acquired after the execution and delivery
thereof, the amendment of certain provisions of the Principal Indenture and the
appointment of the successor Trustee; and

 

WHEREAS, the
Principal Indenture as supplemented and amended by all Supplemental Indentures
heretofore executed by the Company and the Trustee is hereinafter referred to
as the “Indenture”, and, unless the context requires otherwise, references
herein to Articles and Sections of the Indenture shall be to Articles and
Sections of the Principal Indenture as so amended; and

 

WHEREAS, the Company
proposes to create a new series of First Mortgage Bonds to be designated as
First Mortgage Bonds, Collateral Series P (the “Collateral Series P
Bonds”), to be issued and delivered to the trustee under the 1993 Mortgage (as
hereinafter defined) as the basis for the authentication and delivery under the
1993 Mortgage of a series of securities, all as hereinafter provided, and to
vary in certain respects the covenants and provisions contained in Article V
of the Indenture, to the extent that such covenants and provisions apply to the
Collateral Series P Bonds; and

 

WHEREAS, the
Company, pursuant to the provisions of the Indenture, has, by appropriate
corporate action, duly resolved and determined to execute this Supplemental
Indenture for the purpose of providing for the creation of the Collateral Series P
Bonds and of specifying the form, provisions and particulars thereof, as in the
Indenture provided or permitted and of giving to the Collateral Series P
Bonds the protection and security of the Indenture; and

 

WHEREAS, the Company
represents that all acts and proceedings required by law and by the charter and
by-laws of the Company, including all action requisite on the part of its
shareholders, directors and officers, necessary to make the Collateral Series P
Bonds, when executed by the Company, authenticated and delivered by the Trustee
and duly issued, the valid, binding and legal obligations of the Company, and
to constitute the Principal Indenture and all indentures supplemental thereto,
including this Supplemental Indenture, valid, binding and legal instruments for
the security of the bonds of all series, including the Collateral Series P
Bonds, in accordance with the terms of such bonds and 

 

 

such instruments, have been done, performed and fulfilled, and the
execution and delivery hereof have been in all respects duly authorized;

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

 

That Public Service Company of Colorado, the Company named in the
Indenture, in consideration of the premises and of One Dollar to it duly paid
by the Trustee at or before the ensealing and delivery of these presents, the
receipt whereof is hereby acknowledged, and in pursuance of the direction and
authority of the Board of Directors of the Company given at a meeting thereof
duly called and held, and in order to create the Collateral Series P Bonds
and to specify the form, terms and provisions thereof, and to make definite and
certain the lien of the Indenture upon the premises hereinafter described and
to subject said premises directly to the lien of the Indenture, and to secure
the payment of the principal of and premium, if any, and interest, if any, on
all bonds from time to time outstanding under the Indenture, including the
Collateral Series P Bonds, according to the terms of said bonds, and to
secure the performance and observance of all of the covenants and conditions
contained in the Indenture, has executed and delivered this Supplemental
Indenture and has granted, bargained, sold, warranted, aliened, remised,
released, conveyed, assigned, transferred, mortgaged, pledged, set over and
confirmed unto U.S. Bank Trust National Association, as Trustee, and its
successor or successors in the trust and its and their assigns forever, the
property described in Schedule B hereto (which is described in such manner
as to fall within and under the headings or parts or classifications set forth
in the Granting Clauses of the Principal Indenture);

 

TO HAVE AND TO HOLD
all and singular the properties, rights, privileges and franchises described in
the Principal Indenture, in the several Supplemental Indentures hereinabove
referred to and in this Supplemental Indenture and owned by the Company on the
date of the execution and delivery hereof (other than property of a character
expressly excepted from the lien of the Indenture as therein set forth) unto
the Trustee and its successor or successors and assigns forever;

 

SUBJECT, HOWEVER, to
permitted encumbrances as defined in the Indenture;

 

IN TRUST, NEVERTHELESS, upon
the terms and trusts set forth in the Indenture, for the equal and
proportionate benefit and security of all present and future holders of the
bonds and coupons issued and to be issued under the Indenture, including the Collateral
Series P Bonds, without preference, priority or distinction as to lien
(except as any sinking, amortization, improvement or other fund established in
accordance with the provisions of the Indenture or any indenture supplemental
thereto may afford additional security for the bonds of any particular series)
of any of said bonds over any others thereof by reason of series, priority in
the time of the issue or negotiation thereof, or otherwise howsoever, except as
provided in Section 2 of Article IV of the Indenture.

 

2

 

ARTICLE ONE

 

CREATION AND
DESCRIPTION OF THE COLLATERAL SERIES P BONDS

 

SECTION 1.  A new series of bonds to be
issued under and secured by the Indenture is hereby created, the bonds of such
new series to be designated First Mortgage Bonds, Collateral Series P.   The Collateral Series P Bonds shall be
limited to an aggregate principal amount of One Hundred Twenty-Nine Million
Five Hundred Thousand Dollars ($129,500,000), excluding any Collateral Series P
Bonds which may be authenticated and exchanged for or in lieu of or in
substitution for or on transfer of other Collateral Series P Bonds
pursuant to any provisions of the Indenture. 
The Collateral Series P Bonds shall mature on September 1,
2017.  The Collateral Series P Bonds
shall not bear interest.

 

The principal of each Collateral Series P Bond shall be payable,
upon presentation thereof, at the office or agency of the Company in the city
in which the principal corporate trust office of the 1993 Mortgage Trustee (as
hereinafter defined) is located, in any coin or currency of the United States
of America which at the time of payment shall be legal tender for the payment
of public and private debts.

 

The Collateral Series P Bonds shall be issued and delivered by the
Company to U.S. Bank Trust National Association, as successor trustee under the
Indenture, dated as of October 1, 1993, as supplemented (the “1993
Mortgage”), of the Company to such successor trustee (the “1993 Mortgage Trustee”),
as the basis for the authentication and delivery under the 1993 Mortgage of a
series of securities designated as First Collateral Trust Bonds, Series No. 16
(MBIA Collateral Bonds) (the “1993 Mortgage Securities”).  As provided in the 1993 Mortgage, the
Collateral Series P Bonds will be registered in the name of the 1993
Mortgage Trustee or its nominee and will be owned and held by the 1993 Mortgage
Trustee, subject to the provisions of the 1993 Mortgage, for the benefit of the
holders of all securities from time to time outstanding under the 1993
Mortgage, and the Company shall have no interest therein.

 

Any payment or deemed payment by the Company under the 1993 Mortgage of
the principal of the 1993 Mortgage Securities which shall have been authenticated
and delivered under the 1993 Mortgage on the basis of the issuance and delivery
to the 1993 Mortgage Trustee of Collateral Series P Bonds (other than by
the application of the proceeds of a payment in respect of such Collateral Series P
Bonds) shall, to the extent thereof, be deemed to satisfy and discharge the
obligation of the Company, if any, to make a payment of principal of such
Collateral Series P Bonds which is then due.

 

The Trustee may conclusively presume that the obligation of the Company
to pay the principal of the Collateral Series P Bonds as the same shall
become due and payable shall have been fully satisfied and discharged unless
and until it shall have received a written notice from the 1993 Mortgage
Trustee, signed by an authorized officer thereof, stating that the principal of
specified Collateral Series P Bonds has become due and payable and has not
been fully paid, and specifying the amount of funds required to make such
payment.

 

Each Collateral Series P Bond shall be dated as of the date of its
authentication.

 

3

 

The Collateral Series P Bonds shall be issued as fully registered
bonds only, in denominations of $1,000 and multiples thereof.

 

The Collateral Series P Bonds shall be registerable and
exchangeable at the office or agency of the Company in the city in which the
principal corporate trust office of the 1993 Mortgage Trustee is located, in
the manner and upon the terms set forth in Section 5 of Article II of
the Indenture; provided, however, that the Collateral Series P Bonds shall
not be transferrable except to a successor trustee under the 1993
Mortgage.  No service charge shall be
made for any exchange or transfer of any Collateral Series P Bond.

 

SECTION 2.  The text of the Collateral Series P
Bonds shall be substantially in the form attached hereto as Exhibit A.

 

SECTION 3.  The Collateral Series P
Bonds may be executed by the Company and delivered to the Trustee and, upon
compliance with all applicable provisions and requirements of the Indenture in
respect thereof, shall be authenticated by the Trustee and delivered (without
awaiting the filing or recording of this Supplemental Indenture) in accordance
with the written order or orders of the Company.

 

ARTICLE TWO

REDEMPTION OF THE COLLATERAL SERIES P BONDS

 

SECTION 1.  Each Collateral Series P
Bond shall be redeemable at the option of the Company in whole at any time, or
in part from time to time, prior to maturity, at a redemption price equal to
100% of the principal amount thereof to be redeemed.

 

SECTION 2.  In the event that any 1993
Mortgage Securities are to be redeemed pursuant to Section (h)(i) or (ii) of
Article I of Supplemental Indenture No. 16 to the 1993 Mortgage, the
Collateral Series P Bonds shall be redeemed in a principal amount equal to
the principal amount of the 1993 Mortgage Securities to be redeemed and on the
date fixed for redemption of the 1993 Mortgage Securities.

 

SECTION 3.  The provisions of Sections 3, 4,
5, 6 and 7 of Article V of the Indenture shall be applicable to the
Collateral Series P Bonds, except that (a) no publication of notice
of redemption of the Collateral Series P Bonds shall be required and (b) if
less than all the Collateral Series P Bonds are to be redeemed, the
Collateral Series P Bonds to be redeemed shall be selected in the
principal amounts designated to the Trustee by the Company, and except as such
provisions may otherwise be inconsistent with the provisions of this Article Two.

 

SECTION 4.  The holder of each and every
Collateral Series P Bond hereby agrees to accept payment thereof prior to
maturity on the terms and conditions provided for in this Article Two.

 

4

 

ARTICLE THREE

ACKNOWLEDGMENT OF RIGHT TO VOTE

OR CONSENT WITH RESPECT TO

CERTAIN AMENDMENTS TO INDENTURE

 

The Company hereby acknowledges the right of the holders of the
Collateral Series P Bonds to vote or consent with respect to any or all of
the modifications to the Indenture referred to in Article Three of the Supplemental
Indenture, dated as of March 1, 1980, irrespective of the fact that the
Bonds of the Second 1987 Series are no longer outstanding; provided, however, that such
acknowledgment shall not impair (a) the right of the Company to make such
modifications without the consent or other action of the holders of the Bonds
of the 2020 Series or the bonds of any other series subsequently created
under the Indenture with respect to which the Company has expressly reserved
such right or (b) the right of the Company to reserve the right to make
such modifications without the consent or other action of the holders of bonds
of one or more, or any or all, series created subsequent to the creation of the
Collateral Series P Bonds.

 

ARTICLE FOUR

THE TRUSTEE

 

The Trustee accepts the trusts created by this Supplemental Indenture
upon the terms and conditions set forth in the Indenture and this Supplemental
Indenture.  The recitals in this
Supplemental Indenture are made by the Company only and not by the
Trustee.  Each and every term and
condition contained in Article XII of the Indenture shall apply to this
Supplemental Indenture with the same force and effect as if the same were
herein set forth in full, with such omissions, variations and modifications
thereof as may be appropriate to make the same conform to this Supplemental
Indenture.

 

ARTICLE FIVE

MISCELLANEOUS PROVISIONS

 

SECTION 1.  Subject to the variations
contained in Article Two of this Supplemental Indenture, the Indenture is
in all respects ratified and confirmed and the Principal Indenture, this
Supplemental Indenture and all other indentures supplemental to the Principal
Indenture shall be read, taken and construed as one and the same
instrument.  Neither the execution of
this Supplemental Indenture nor anything herein contained shall be construed to
impair the lien of the Indenture on any of the properties subject thereto, and
such lien shall remain in full force and effect as security for all bonds now
outstanding or hereafter issued under the Indenture.

 

All covenants and provisions of the Indenture shall continue in full
force and effect and this Supplemental Indenture shall form part of the
Indenture.

 

5

 

SECTION 2.  If the date for making any
payment or the last date for performance of any act or the exercising of any
right, as provided in this Supplemental Indenture, shall not be a Business Day
(as defined in the 1993 Mortgage), such payment may be made or act performed or
right exercised on the next succeeding Business Day with the same force and
effect as if done on the nominal date provided in this Supplemental Indenture.

 

SECTION 3.  The terms defined in the
Indenture shall, for all purposes of this Supplemental Indenture, have the
meaning specified in the Indenture except as set forth in Section 4 of
this Article or otherwise set forth in this Supplemental Indenture or
unless the context clearly indicates some other meaning to be intended.

 

SECTION 4.  Any term defined in Section 303
of the Trust Indenture Act of 1939, as amended, and not otherwise defined in
the Indenture shall, with respect to this Supplemental Indenture and the
Collateral Series P Bonds, have the meaning assigned to such term in Section 303
as in force on the date of the execution of this Supplemental Indenture.

 

SECTION 5.  This Supplemental Indenture may
be executed in any number of counterparts, and all of said counterparts
executed and delivered, each as an original, shall constitute but one and the
same instrument.

 

6

 

IN WITNESS WHEREOF,
Public Service Company of Colorado, party hereto of the first part, has caused
its corporate name to be hereunto affixed, and this instrument to be signed by
its President, an Executive Vice President, a Senior Vice President or a Vice
President, and its corporate seal to be hereunto affixed and attested by its
Secretary or an Assistant Secretary for and in its behalf; and U.S. Bank Trust
National Association, the party hereto of the second part, in evidence of its
acceptance of the trust hereby created, has caused its corporate name to be
hereunto affixed, and this instrument to be signed and its corporate seal to be
affixed by one of its Vice Presidents and attested by one of its Vice
Presidents, for and in its behalf, all as of the day and year first above
written.

 

	
   

  	
  PUBLIC SERVICE COMPANY OF

  
	
   

  	
    COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ GEORGE E. TYSON II

  	
   

  
	
   

  	
  Name:

  	
  George E. Tyson II

  
	
   

  	
  Title:

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
  ATTEST: 

  	
   /S/ PATRICE D. BLAESER

  	
   

  	
   

  
	
   

  	
   Name:

  	
  Patrice D. Blaeser

  	
   

  
	
   

  	
   Title:

  	
  Assistant Secretary

  	
   

  
	
   

  	
   

  
	
  STATE OF MINNESOTA

  	
  )

  	
   

  
	
   

  	
  ) ss.:

  	
   

  
	
  CITY OF MINNEAPOLIS

  	
  )

  	
   

  
									

 

On this 10th day of August, 2005,
before me, Sharon M. Quellhorst, a duly authorized Notary Public in and for
said City in the State aforesaid, personally appeared George E. Tyson II and
Patrice D. Blaeser to me known to be a Vice President and Treasurer and an
Assistant Secretary, respectively, of PUBLIC SERVICE COMPANY OF COLORADO, a
corporation organized and existing under the laws of the State of Colorado, one
of the corporations that executed the within and foregoing instrument; and the
said Vice President and Treasurer and Assistant Secretary severally
acknowledged the said instrument to be the free and voluntary act and deed of
said corporation, for the uses and purposes therein mentioned, and on oath
stated that they were authorized to execute said instrument and that the seal
affixed thereto is the corporate seal of said corporation.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.

 

	
   

  	
    /S/ SHARON M. QUELLHORST

  	
   

  
	
   

  	
  Name: Sharon M. Quellhorst

  
	
   

  	
  Notary Public, State of Minnesota

  
	
   

  	
  Commission Expires: January 31, 2010

  

 

7

 

	
   

  	
  U.S. BANK TRUST

  
	
   

  	
    NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /S/ BEVERLY A. FREENEY

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Beverly A. Freeney

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
  ATTEST: 

  	
   /S/ WARD SPOONER

  	
   

  	
   

  
	
   

  	
   Name:

  	
  Ward Spooner

  	
   

  
	
   

  	
   Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  ) ss.:

  	
   

  
	
  CITY AND COUNTY OF NEW YORK

  	
  )

  	
   

  
									

 

On this 10th day of August, 2005 before me,
Patricia V. Cowart, a duly authorized Notary Public in and for said City and
County in the State aforesaid, personally appeared Beverly A. Freeney and Ward
Spooner to me known to be Vice Presidents of U.S. BANK TRUST NATIONAL
ASSOCIATION, a national banking association, one of the corporations that
executed the within and foregoing instrument; and the said Vice Presidents
severally acknowledged the said instrument to be the free and voluntary act and
deed of said corporation, for the uses and purposes therein mentioned, and on
oath stated that they were authorized to execute said instrument and that the
seal affixed thereto is the corporate seal of said corporation.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year first above written.

 

	
   

  	
    /S/ PATRICIA V. COWART

  	
   

  
	
   

  	
  Name: Patricia V. Cowart

  
	
   

  	
  Notary Public, State of New York

  
	
   

  	
  Commission Expires: September 22, 2005

  

 

8

 

EXHIBIT A

 

FORM OF COLLATERAL SERIES P BOND

 

This bond is not transferable except to a
successor trustee under the Indenture, dated as of October 1, 1993, as
supplemented, between Public Service Company of Colorado and U.S. Bank Trust
National Association (formerly First Trust of New York, National Association),
as successor trustee thereunder.

 

PUBLIC SERVICE
COMPANY OF COLORADO

 

FIRST MORTGAGE BOND,

 

Collateral Series P

 

DUE September 1, 2017

 

	
  REGISTERED

  	
   

  	
  REGISTERED

  
	
   

  	
   

  	
   

  
	
  No. 1

  	
   

  	
  $129,500,000

  

 

FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF COLORADO, a corporation
organized and existing under the laws of the State of Colorado (hereinafter
sometimes called the “Company”), promises to pay to U.S. Bank Trust National
Association (formerly known as First Trust of New York, National Association),
as successor trustee (the “1993 Mortgage Trustee”) under the Indenture, dated
as of October 1, 1993 (the “1993 Mortgage”), of the Company, or registered
assigns, One Hundred Twenty-Nine Million Five Hundred Thousand Dollars on September 1, 2017, at the office or agency of the Company in the city
in which the principal corporate trust office of the 1993 Mortgage Trustee is
located.  This bond shall not bear
interest.  The principal of this bond shall
be payable in any coin or currency of the United States of America which at the
time of payment shall be legal tender for the payment of public and private
debts.

 

Any payment or deemed payment by the Company under the 1993 Mortgage of
the principal of securities which shall have been authenticated and delivered
under the 1993 Mortgage on the basis of the issuance and delivery to the 1993
Mortgage Trustee of this bond (the “1993 Mortgage Securities”) (other than by
the application of the proceeds of a payment in respect of this bond) shall, to
the extent thereof, be deemed to satisfy and discharge the obligation of the
Company, if any, to make a payment of principal of this bond which is then due.

 

This bond is one of an issue of bonds of the Company, issued and to be
issued in one or more series under and equally and ratably secured (except as
any sinking, amortization, improvement or other fund, established in accordance
with the provisions of the indenture hereinafter mentioned, may afford additional
security for the bonds of any particular series) by a 

 

A-1

 

certain
indenture, dated as of December 1, 1939, made by the Company to U.S. BANK
TRUST NATIONAL ASSOCIATION (formerly First Trust of New York, National
Association), as successor trustee (hereinafter called the “Trustee”) to Morgan
Guaranty Trust Company of New York (formerly Guaranty Trust Company of New
York), as amended and supplemented by several indentures supplemental thereto,
including the Supplemental Indenture dated as of August 1, 2005 (said
Indenture as amended and supplemented by said indentures supplemental thereto
being hereinafter called the “Indenture”), to which Indenture reference is
hereby made for a description of the property mortgaged, the nature and extent
of the security, the rights and limitations of rights of the Company, the
Trustee, and the holders of said bonds, under the Indenture, and the terms and
conditions upon which said bonds are secured, to all of the provisions of which
Indenture and of all indentures supplemental thereto in respect of such
security, including the provisions of the Indenture permitting the issue of
bonds of any series for property which, under the restrictions and limitations
therein specified, may be subject to liens prior to the lien of the Indenture,
the holder, by accepting this bond, assents. 
To the extent permitted by and as provided in the Indenture, the rights
and obligations of the Company and of the holders of said bonds (including those
pertaining to any sinking or other fund) may be changed and modified, with the
consent of the Company, by the holders of at least 75% in aggregate principal
amount of the bonds then outstanding (excluding bonds disqualified from voting
by reason of the Company’s interest therein as provided in the Indenture); provided,
however, that without the consent of the holder hereof no such
modification or alteration shall be made which will extend the time of payment
of the principal of this bond or reduce the principal amount hereof or effect
any other modification of the terms of payment of such principal or will reduce
the percentage of bonds required for the aforesaid actions under the
Indenture.  The Company has reserved the
right to amend the Indenture without any consent or other action by holders of
any series of bonds created after October 31, 1975 (including this series)
so as to change 75% in the foregoing sentence to 60% and to change certain
procedures relating to bondholders’ meetings. 
This bond is one of a series of bonds designated as the First Mortgage
Bonds, Collateral Series P, of the Company.

 

This bond shall be redeemable at the option of the Company in whole at
any time, or in part from time to time, prior to maturity, at a redemption
price equal to 100% of the principal amount thereof to be redeemed.

 

In the event that any or all of the 1993 Mortgage Securities are
redeemed pursuant to Section (h)(i) or (ii) of Article I of
Supplemental Indenture No. 16 to the 1993 Mortgage, this bond shall be
redeemed in a principal amount equal to the principal amount of the 1993
Mortgage Securities to be redeemed and on the date fixed for redemption of the
1993 Mortgage Securities.

 

The principal of this bond may be declared or may become due before the
maturity hereof, on the conditions, in the manner and at the times set forth in
the Indenture, upon the happening of an event of default as therein provided.

 

This bond is not transferable except to a successor trustee under the
1993 Mortgage, any such transfer to be made at the office or agency of the
Company in the city in which the principal corporate trust office of the 1993
Mortgage Trustee is located, upon surrender and cancellation of this bond, and
thereupon a new bond of this series of a like principal amount will be issued
to 

 

A-2

 

the transferee
in exchange therefor, as provided in the Indenture.  The Company, the Trustee, any paying agent
and any registrar may deem and treat the person in whose name this bond is
registered as the absolute owner hereof for the purpose of receiving payment
and for all other purposes.  This bond,
alone or with other bonds of this series, may in like manner be exchanged at
such office or agency for one or more new bonds of this series of the same
aggregate principal amount, all as provided in the Indenture.  No service charge shall be made to any holder
of any bond of this series for any exchange or transfer of bonds.

 

No recourse under or upon any covenant or obligation of the Indenture,
or of any bonds thereby secured, or for any claim based thereon, or otherwise
in any manner in respect thereof, shall be had against any incorporator,
subscriber to the capital stock, shareholder, officer or director, as such, of
the Company, whether former, present or future, either directly, or indirectly
through the Company or the Trustee, by the enforcement of any subscription to
capital stock, assessment or otherwise, or by any legal or equitable proceeding
by virtue of any statute or otherwise (including, without limiting the
generality of the foregoing, any proceeding to enforce any claimed liability of
shareholders of the Company based upon any theory of disregarding the corporate
entity of the Company or upon any theory that the Company was acting as the
agent or instrumentality of the shareholders), any and all such liability of
incorporators, shareholders, subscribers, officers and directors, as such,
being released by the holder hereof, by the acceptance of this bond, and being
likewise waived and released by the terms of the Indenture under which this
bond is issued.

 

This bond shall not be valid or become obligatory for any purpose until
the certificate of authentication endorsed hereon shall have been signed by
U.S. Bank Trust National Association, or its successor, as Trustee under the
Indenture.

 

IN WITNESS WHEREOF, Public Service Company of Colorado has caused this
bond to be signed in its name by a Vice President and its corporate seal to be
affixed hereto and attested by its Secretary or an Assistant Secretary.

 

	
  Dated:

  	
  PUBLIC SERVICE COMPANY OF

  
	
   

  	
  COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
    Vice President and Treasurer

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  	
   

  
	
   

  	
    Assistant Secretary

  	
   

  
						

 

A-3

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the securities of the series designated therein referred
to in the within-mentioned Supplemental Indenture.

 

	
  Dated:

  	
  U.S. BANK TRUST

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  AS
  TRUSTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Officer

  	
   

  

 

A-4

 

SCHEDULE A

 

SUPPLEMENTAL
INDENTURES

 

	
  Date of 

  Supplemental 

  Indenture

  	
   

  	
  Series of Bonds

  	
   

  	
  Principal 

  Amount Issued

  	
   

  	
  Principal 

  Amount 

  Outstanding

  	
   

  
	
  March 14, 1941

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  May 14, 1941

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 28, 1942

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 14, 1943

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 27, 1944

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 18, 1945

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 23, 1946

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 9, 1947

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  June 1, 1947*

  	
   

  	
  2-7/8% Series due
  1977

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 1948

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  May 20, 1948

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  October 1, 1948

  	
   

  	
  3-1/8% Series due
  1978

  	
   

  	
  10,000,000

  	
   

  	
  None

  	
   

  
	
  April 20, 1949

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 24, 1950

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 18, 1951

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  October 1, 1951

  	
   

  	
  3-1/4% Series due
  1981

  	
   

  	
  15,000,000

  	
   

  	
  None

  	
   

  
	
  April 21, 1952

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  December 1, 1952

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 15, 1953

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 19, 1954

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  October 1, 1954*

  	
   

  	
  3-1/8% Series due
  1984

  	
   

  	
  20,000,000

  	
   

  	
  None

  	
   

  
	
  April 18, 1955

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 24, 1956

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  May 1, 1957*

  	
   

  	
  4-3/8% Series due
  1987

  	
   

  	
  30,000,000

  	
   

  	
  None

  	
   

  
	
  April 10, 1958

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  May 1, 1959

  	
   

  	
  4-5/8% Series due
  1989

  	
   

  	
  20,000,000

  	
   

  	
  None

  	
   

  
	
  April 18, 1960

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 19, 1961

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  October 1, 1961

  	
   

  	
  4-1/2% Series due
  1991

  	
   

  	
  30,000,000

  	
   

  	
  None

  	
   

  
	
  March 1, 1962

  	
   

  	
  4-5/8% Series due
  1992

  	
   

  	
  8,800,000

  	
   

  	
  None

  	
   

  
	
  June 1, 1964

  	
   

  	
  4-1/2% Series due
  1994

  	
   

  	
  35,000,000

  	
   

  	
  None

  	
   

  
	
  May 1, 1966

  	
   

  	
  5-3/8% Series due
  1996

  	
   

  	
  35,000,000

  	
   

  	
  None

  	
   

  
	
  July 1, 1967*

  	
   

  	
  5-7/8% Series due
  1997

  	
   

  	
  35,000,000

  	
   

  	
  None

  	
   

  
	
  July 1, 1968*

  	
   

  	
  6-3/4% Series due
  1998

  	
   

  	
  25,000,000

  	
   

  	
  None

  	
   

  
	
  April 25, 1969

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
									

 

A-1

 

	
  Date of 

  Supplemental 

  Indenture

  	
   

  	
  Series of Bonds

  	
   

  	
  Principal 

  Amount Issued

  	
   

  	
  Principal 

  Amount 

  Outstanding

  	
   

  
	
  April 21, 1970

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  September 1, 1970

  	
   

  	
  8-3/4% Series due
  2000

  	
   

  	
  35,000,000

  	
   

  	
  None

  	
   

  
	
  February 1, 1971

  	
   

  	
  7-1/4% Series due
  2001

  	
   

  	
  40,000,000

  	
   

  	
  None

  	
   

  
	
  August 1, 1972

  	
   

  	
  7-1/2% Series due
  2002

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  June 1, 1973

  	
   

  	
  7-5/8% Series due
  2003

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  March 1, 1974

  	
   

  	
  Pollution Control
  Series A

  	
   

  	
  24,000,000

  	
   

  	
  None

  	
   

  
	
  December 1, 1974

  	
   

  	
  Pollution Control
  Series B

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  October 1, 1975

  	
   

  	
  9-3/8% Series due
  2005

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  April 28, 1976

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  April 28, 1977

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  November 1, 1977*

  	
   

  	
  8-1/4% Series due
  2007

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  April 28, 1978

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  October 1, 1978

  	
   

  	
  9-1/4% Series due
  2008

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  October 1, 1979*

  	
   

  	
  Pollution Control
  Series C

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  March 1, 1980*

  	
   

  	
  15% Series due 1987

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  April 28, 1981

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  November 1, 1981*

  	
   

  	
  Pollution Control
  Series D

  	
   

  	
  27,380,000

  	
   

  	
  None

  	
   

  
	
  December 1, 1981*

  	
   

  	
  16-1/4% Series due
  2011

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  April 29, 1982

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  May 1, 1983*

  	
   

  	
  Pollution Control
  Series E

  	
   

  	
  42,000,000

  	
   

  	
  None

  	
   

  
	
  April 30, 1984

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  March 1, 1985*

  	
   

  	
  13% Series due 2015

  	
   

  	
  50,000,000

  	
   

  	
  None

  	
   

  
	
  November 1, 1986*

  	
   

  	
  Pollution Control
  Series F

  	
   

  	
  27,250,000

  	
   

  	
  None

  	
   

  
	
  May 1, 1987*

  	
   

  	
  8.95% Series due 1992

  	
   

  	
  75,000,000

  	
   

  	
  None

  	
   

  
	
  July 1, 1990*

  	
   

  	
  9-7/8% Series due
  2020

  	
   

  	
  75,000,000

  	
   

  	
  None

  	
   

  
	
  December 1, 1990*

  	
   

  	
  Secured Medium-Term Notes,
  Series A

  	
   

  	
  191,500,000

  	
  **

  	
  None

  	
   

  
	
  March 1, 1992*

  	
   

  	
  8-1/8% Series due
  2004 and

  	
   

  	
  100,000,000

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
  8-3/4% Series due
  2022

  	
   

  	
  150,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 1993*

  	
   

  	
  Pollution Control
  Series G

  	
   

  	
  79,500,000

  	
   

  	
  79,500,000

  	
   

  
	
  June 1, 1993*

  	
   

  	
  Pollution Control
  Series H

  	
   

  	
  50,000,000

  	
   

  	
  50,000,000

  	
   

  
	
  November 1, 1993*

  	
   

  	
  Collateral Series A

  	
   

  	
  134,500,000

  	
   

  	
  134,500,000

  	
   

  
	
  January 1, 1994*

  	
   

  	
  Collateral Series B
  due 2001 and

  	
   

  	
  102,667,000

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
  Collateral Series B
  due 2024

  	
   

  	
  110,000,000

  	
   

  	
  None

  	
   

  
	
  September 2, 1994

  	
   

  	
  None

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  (Appointment of Successor Trustee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  May 1, 1996

  	
   

  	
  Collateral Series C

  	
   

  	
  125,000,000

  	
   

  	
  125,000,000

  	
   

  

 

A-2

 

	
  Date of 

  Supplemental 

  Indenture

  	
   

  	
  Series of Bonds

  	
   

  	
  Principal 

  Amount Issued

  	
   

  	
  Principal 

  Amount 

  Outstanding

  	
   

  
	
  November 1, 1996

  	
   

  	
  Collateral Series D

  	
   

  	
  250,000,000

  	
   

  	
  100,000,000

  	
   

  
	
  February 1, 1997

  	
   

  	
  Collateral Series E

  	
   

  	
  150,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 1998

  	
   

  	
  Collateral Series F

  	
   

  	
  250,000,000

  	
   

  	
  None

  	
   

  
	
  August 15, 2002

  	
   

  	
  Collateral Series G

  	
   

  	
  48,750,000

  	
   

  	
  48,750,000

  	
   

  
	
  September 1, 2002

  	
   

  	
  Collateral Series H

  	
   

  	
  600,000,000

  	
   

  	
  None

  	
   

  
	
  September 15, 2002

  	
   

  	
  Collateral Series I

  	
   

  	
  530,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 2003

  	
   

  	
  Collateral Series J

  	
   

  	
  600,000,000

  	
   

  	
  600,000,000

  	
   

  
	
  March 1, 2003

  	
   

  	
  Collateral Series K

  	
   

  	
  250,000,000

  	
   

  	
  None

  	
   

  
	
  September 15, 2003

  	
   

  	
  Collateral Series L

  	
   

  	
  250,000,000

  	
   

  	
  250,000,000

  	
   

  
	
  May 1, 2003

  	
   

  	
  Collateral Series M

  	
   

  	
  350,000,000

  	
   

  	
  None

  	
   

  
	
  September 1, 2003

  	
   

  	
  Collateral Series N

  	
   

  	
  300,000,000

  	
   

  	
  300,000,000

  	
   

  
	
  September 1, 2003

  	
   

  	
  Collateral Series O

  	
   

  	
  275,000,000

  	
   

  	
  275,000,000

  	
   

  

 

*
Contains amendatory provisions

**
$200,000,000 authorized

 

A-3

 

SCHEDULE B

 

DESCRIPTION OF PROPERTY

 

The following properties are situated in the State of Colorado and the
counties thereof:

 

Part First
– Plants

 

Mesa County

 

Cameo Power Plant – Additional Land – The
Powderhorn Tract

 

PARCEL A:

 

Township 10 South, Range 98 West of the 6th P.M.:

Section 33:

S1/2 SW1/4;

E1/2 EXCEPT the North 660 feet thereof as
conveyed in instrument recorded August 3, 1994 in Book 2090 at Page 243.

(2709-334-00-074 – Book 1350 at Page 544,
and Book 3095 at Page 106)

 

Section 34:

S1/2NW1/4 lying West of the West boundary
line of that parcel conveyed in instrument recorded June 19, 1980 in Book
1262 at Page 582 and re-recorded November 28, 1980 in Book 1286 at Page 655,
said West boundary line being described as follows:

 

Beginning at a point on the South line of the
S1/2 of said NW1/4 which is located S 89o54’35”E 1301.50 feet from the W1/4
corner of said Section 34;

Thence along a cliff North 41o08’ West 479.52
feet to the Grand Valley Highline Canal right of way;

Thence along said Canal right of way North
56o48’East 71.65 feet;

Thence North 33o12’ West 365.00 feet;

Thence North 23o44’ West 395.00 feet;

Thence North 21o16’ East 196.45 feet to the
Southerly railroad spur right of way;

Thence North 73o04’30” East 252.17 feet along
said railroad right of way to the North line of said S1/2NW1/4.

EXCEPT all that portion as conveyed in
instrument recorded June 19, 1980 in Book 1262 at Page 582 and
re-recorded November 28, 1980 in Book 1286 at Page 655 being more
particularly described as follows:

 

Commencing at a point being a chiseled cross
on the East face of the concrete mine portal entrance from whence the NW corner
of Section 34, Township 10 South, Range 98 West as now located bears N49o20’
West 1145.0 feet;

Thence North 37o32’ West 15 feet along the
center line of the Mine tract;

Thence South 52o28’ West 560.0 feet;

Thence on an angle to the right of 89o02’ for
a distance of 216.66 feet to the true point of beginning;

 

B-1

 

Thence on an angle to the left of 97o13’ for
a distance of 225 feet;

Thence on an angle to the right of 90o00’ for
a distance of 150 feet;

Thence on an angle to the right of 90o00’ for
a distance of 225 feet;

Thence 150 feet to the point of beginning.

 

ALSO EXCEPT: A strip of land 100 feet in
width being 50 feet wide on each side of the center line of the Spur Track as
now constructed over and across the Southerly portion of NW1/4NW1/4 Section 34,
Township 10 South, Range 98 West, 6th P.M. 
Said Spur Track extending in a Westerly direction from the main track of
Rio Grande Junction Railway Co. near Cameo Station.

 

NOTE: Said strip deeded to Rio Grande
Junction Railway Co., in the instrument recorded May 3, 1900 in Book 46 at
Page 582 but the specific location is not described. (2709-334-00-074 –
Book 1350 at Page 544, and Book 3095 at Page 106)

 

PARCEL B:

 

Township 11 South, Range 98 West 6th P. M.:

 

Section 3:

Lots 1, 2, 3, 4, 5, 6, 7, 12 and 13: EXCEPT a
strip of land 100 feet wide or 50 feet wide on each side of the center line of
the survey of the Rio Grande Junction Railway Company as same is now surveyed,
staked and located through, over and across Lot 1 as conveyed in Deed recorded November 5,
1889 in Book 2 at Page 218.

(2937-032-00-001 – Book 1350 at Page 544,
and Book 3095 at Page 117)

 

Section 4:

Lots 7 and 8

(2937-032-00-001 – Book 1350 at Page 544,
and Book 3095 at Page 117)

 

The above-described property is further
described by metes and bounds survey as that certain 793.8 acre parcel of land,
more or less, provided by Survey of KS Professional Surveying, Inc., Kurt
R. Shepherd, Colorado Professional Land Surveyor No. 28662, dated January 22,
2003, and being more particularly described as follows:

 

A parcel of land located in a portion of Section 33
and 34, Township 10 South, Range 98 West, and Section 3 and 4, Township 11
South, Range 98 West, 6th Principal Meridian, Mesa County Colorado, being more
particularly described as follows:

 

Commencing at the Southeast corner of said Section 33,
which is a U.S. G.L.O. brass cap, whence the Southwest corner of Section 33,
which is a U.S. G.L.O. brass cap bears North 89o51’01” West with all bearings
contained herein relative thereto; this being the POINT OF BEGINNING.

 

Thence North 89o59’34”East 353.72 feet along
the Northerly line of said Section 3 to the Northeast corner of Section 3;
Thence South 00o35’49”West 59.17 feet along the Easterly line of 

 

B-2

 

Section 3 to the Westerly R.O.W. line of
the Union Pacific Railroad; Thence along said R.O.W. the following courses,
230.39 feet along the arc of a curve to the left having a radius of 3070.19
feet, a central angle of 04o17’58”, the chord of which bears South 20o36’51”West
230.33 feet; Thence South 18o27’52”West 639.12 feet; Thence South 89o56’22”
West 52.74 feet; Thence 437.99 feet along the arc of a curve to the right
having a radius of 1781.02 feet, a central angle of 14o05’25”, the chord of
which bears South 25o38’35”West 436.89 feet; Thence South 32o41’18”West 560.16
feet; Thence 340.88 feet along the arc of a curve to the left having a radius
of 2246.35 feet, a central angle of 08o41’40”, the chord of which bears South
28o13’23”West 340.55 feet; Thence South 23o52’33”West 162.88 feet to the
Southerly line of Government Lot 8, Section 3; Thence departing from the
Union Pacific Railroad R.O.W. South 89o54’41”West 1610.27 feet along the
Southerly line of Government Lots 8 and 7, Section 3, to the common corner
of Southwest corner Government Lot 7, Section 3, and the Northeast corner
Government Lot 12, Section 3; Thence South 00o48’55”West 1314.49 feet
along the Easterly line of Government Lot 12, Section 3, to the Southeast
corner of Government Lot 12, Section 3; Thence South 89o52’59”West 2632.27
feet along the Southerly line of Government Lots 12 and 13, Section 3, to
the Southwest corner of Government Lot 13, Section 3, and the Westerly
line of Section 3; Thence North 00o41’45”East 1315.75 feet along the
Westerly line of Government Lot 13, Section 3, and the Westerly line of Section 3,
to the common corner of Northwest corner Government Lot 13, Section 3, and
the Southeast corner Government Lot 8, Section 4, Thence North 89o46’06”West
2645.72 feet along the Southerly line of Government Lots 8 and 7, Section 4,
to the Southwest corner of Government Lot 7, Section 4; Thence North 00o38’49”East
1311.45 feet along the Westerly line of Government Lot 7, Section 4, to
the Northwest corner of Government Lot 7, Section 4; Thence South 89o51’40”East
2646.87 feet along the Northerly line of Government Lots 7 and 8, Section 4,
to the common corner of Northeast corner Government Lot 8, Section 4, and
the Southwest corner Government Lot 4, Section 3; Thence North 00o41’45”East
899.16 feet along the Westerly line of Government Lot 4, Section 3, and
the Westerly line of Section 3 to the Northwest corner of Section 3,
Township 11 South, Range 98 West, this point also being on the Southerly line
of Section 33, Township 10 South, Range 98 West; Thence North 89o51’24”West
404.71 feet along said Southerly line of Section 33 to the Southwest
corner of Section 33, Thence North 00o10’16”East 1320.41 feet along the
Westerly line of the Southwest 1⁄4 of the Southwest 1⁄4 of Section 33 to the
Northwest corner of the Southwest 1⁄4 of the Southwest 1⁄4 of Section 33;
Thence South 89o50’42’East 1328.01 feet along the Northerly line of the
Southwest 1⁄4 of the Southwest 1⁄4 of Section 33 to the Northwest corner of
the Southeast 1⁄4 of the Southwest 1⁄4 of Section 33; Thence South 89o54’43” East
1330.59 feet along the Northerly line of the Southeast 1⁄4 of the Southwest 1⁄4 of Section 33
to the Northeast corner of the Southeast 1⁄4 of the Southwest 1⁄4 of Section 33;
Thence North 00o01’01”West 1321.90 feet along the Westerly line of the
Southeast 1⁄4 of Section 33 to the Northwest corner of the Southeast 1⁄4 of Section 33;
Thence North 00o02’14”West 1985.41 feet along the Westerly line of the
Northeast 1⁄4 of Section 33; Thence North 89o55’50”East 2649.11 feet to the
Easterly line of Section 33; Thence South 00o13’02’East 663.48 feet along
the Easterly line of Section 33 to the Northwest corner of the South 1⁄2 of
the Northwest 1⁄4 of Section 34, Township 10 South, Range 98 West; Thence
South 89o55’53”East 484.76 feet along the Northerly line of the South 1⁄2 of the
Northwest 1⁄4 of Section 34; Thence departing from said Northerly line of
the South 1⁄2 of the Northwest 1⁄4 of Section 34 South 43o09’20”West 101.06
feet; Thence South 46o50’40” East 150.00 feet; Thence North 43o09’20” East
225.00 feet; Thence North 46o50’40” West 17.50 feet to the Northerly line of
the South 1⁄2 of the Northwest 1⁄4 of Section 34; Thence South 89o55’53”

 

B-3

 

East 336.66 feet along the Northerly line of
the South 1⁄2 of the Northwest 1⁄4 of Section 34; Thence departing from the
Northerly line of the South 1⁄2 of the Northwest 1⁄4 of Section 34 South 73o02’25”West
247.77 feet; Thence South 21o13’55”West 196.45 feet; Thence South 23o16’05”East
395.00 feet; Thence South 33o14’05”East 365.00 feet; Thence South 56o45’55”
West 71.65 feet; Thence South 41o10’05”East 479.52 feet to the Southerly line
of the South 1⁄2 of the Northwest 1⁄4 of Section 34; Thence North 89o56’40”West
1301.50 along the Southerly line of the South 1⁄2 of the Northwest 1⁄4 of Section 34
to the Northeast corner of the Southeast 1⁄4 of Section 33; Thence South
00o09’26”East 2651.99 feet along the Easterly line of the Southeast 1⁄4 of Section 33
to the POINT OF BEGINNING.

 

Containing approximately 793.8 acres.

 

Morgan County

 

Pawnee Power Plant – Additional Land - Kauk
Tract

 

A parcel of land in the NE1/4 of Section 30,
Township 4 North, Range 56 West of the 6th P.M., Morgan County, Colorado,
said parcel being more particularly described as follows:  Commencing at the Southeast corner of said
NE1/4 of Section 30; thence N1o21’25”E along the East line of said Section 30
a distance of 389.56 feet to the true point of beginning; thence S69o01’25”W a
distance of 275.12 feet; thence S76o50’45”W a distance of 613.35 feet; thence
N89o13’10”W a distance of 791.36 feet; thence N87o12’55”W a distance of 421.76
feet; thence N86o46’00”W a distance of 562.68 feet to a point on the west line
of said NE1/4 of Section 30; thence N1o34’20”E along the West line of said
NE1/4 of Section 30 a distance of 216.70 feet to a point on a parcel of
land described in Book 787 at page 526 of the Morgan County records;
thence N48o30’00”E along the Southerly line of said parcel of land described in
Book 787 at page 526 a distance of 655.00 feet; thence N78o30’00”E along the
Southerly line of said parcel of land described in Book 787 at page 526 a
distance of 980.00 feet; thence N63o35’20”E along the Southerly line of said
parcel of land described in Book 787 at page 526 a distance of 1341.75
feet to a point on the east line of said Section 30; thence S1o21’25”W
along the East line of said Section 30 a distance of 1268.14 feet to the
point of beginning, according to survey by Leibert McAtte and Associates dated December 13,
2004.

 

Part Second
– Substations

 

Adams County

 

1.             Chambers
Substation Site

 

A parcel of land being a portion of Lot 2,
Block 9; of Upland Park, recorded in the Adams County Clerk and Recorder’s
Office in Plat Book 14 at Page 18, lying in Section 30, Township 3
South, Range 66 West of the 6th Principal Meridian, Adams County, Colorado,
being more particularly described as follows:

 

B-4

 

Beginning at the Northwest Corner of Lot 1,
Block 1, DHL Subdivision Filing No. 1, as recorded at Reception No. C0274678,
Adams County Clerk and Recorder’s Office, whence the northeast corner of said
Lot 2 bears South 88 Degrees, 53 Minutes 55 Seconds East and distance of 252.51
feet;

Thence South 01 Degrees 05 Minutes 25 Seconds
West along the westerly line of said DHL Subdivision, Filing No. 1, a
distance of 520.98 feet;

Thence North 70 Degrees 46 Minutes 16 Seconds
West along the northerly line of the Union Pacific Railroad Main Line Line
Right Of Way as shown on said Upland Park Plat, a distance of 339.42 feet;

Thence North 01 Degrees 06 Minutes 08 Seconds
East, non-tangent with the following described curve, a distance of 441.88
feet;

 

Thence the following two (2) courses
along the Northerly Line of said Lot 2, being 30.00 feet southerly of and
parallel with the centerline of East Moncrieff Place:

1)             Along
the arc of a curve to the left, having a central angel of 18 Degrees 06 Minutes
45 Seconds, a radius of 535.05 feet, a chord bearing of South 79 Degrees 50
Minutes 32 Seconds East, a distance of 168.44 feet, and an arc distance of
169.14 feet;

2)             Thence
South 88 Degrees 53 Minutes 55 Seconds East tangent with the last described
curve, a distance of 156.13 feet to the point of beginning.

 

2.             Spruce
Substation

 

Lots 3 and 4, Block 1, Blue Spruce Energy
Center Subdivision Filing No. 1, City of Aurora, County of Adams, State of
Colorado

 

Arapahoe County

 

Murphy Creek Substation

 

Lot 1, Block 1, Southlands Subdivision Filing
No. 2, as shown on the plat thereof recorded November 29, 2004 at
Reception No. B4205583

 

Garfield County

 

New Castle Substation

 

Parcel A:

 

A tract of land situated in the NW1/4SE1/4 Section 31,
Township 5 South, Range 90 West of the Sixth Principal Meridian lying south of
the South Line of the Colorado River and north of the North Right of Way Line
of County Road No. 335, Town of New Castle, County of Garfield, State of
Colorado, said tract of land being more particularly described as follows:

 

B-5

 

Beginning at the intersection of the
North Right of Way of said County Road No. 335 and the West Line of said
NW1/4SE1/4 from which the center of said Section 31 Bears N. 01 Degrees 33’
18” W. a distance of 965.50 feet;

Then along said West Line N. 01 Degrees 33’
18” W. a distance of 114.11 feet to the southerly line of the Colorado River;

Then departing said West Line and along said
South Line the following two courses:

1)             N.
81 Degrees 40’ 00” E. a distance of 336.73 feet;

2)             N.
76 Degrees 53’ 00” E. a distance of 580.91 feet;

 

Then departing said southerly line S. 02 Degrees
24’ 56” E. a distance of 296.38 feet to the North Right of Way Line of said
County Road;

 

Then along said North Right of Way the
following three courses:

1)             S.
88 Degrees 30’ 42” W. a distance of 541.11 feet;

2)             N.
86 Degrees 43’ 18” W. a distance of 301.00 feet;

3)             S.
88 Degrees 30’ 42” W. a distance of 66.90 feet to the point of beginning.

 

Parcel B:

 

A tract of land in the NW1/4SE1/4 (Lot 5) Section 31,
Township 5 S., Range 90 West of the Sixth Principal Meridian, lying southerly
of the Colorado River and Northerly of the Right of Way as conveyed to the
Department of Highways, State of Colorado by Document No. 245837:

 

Beginning at a point 326 feet more or less,
westerly of the intersection of the northerly Right of Way Line of said
Right of Way and the East Line of Lot 5; thence northerly to the southerly line
of the Colorado River; thence westerly 100 feet, more or less along the
southerly line of the Colorado River; thence southerly to the northerly line of
said Right of Way; thence easterly along the northerly line of said Right of
Way to the point of beginning.

 

Routt County

 

Foidel Creek Substation – Twenty Mile Coal
Tract

 

Parcel A:

 

A parcel of land located in Section 21,
Township 5 North, Range 86 West of the Sixth Principal Meridian, County of
Routt, State of Colorado, more particularly described as follows:

 

Commencing at the south quarter corner of
said Section 21 whence the southwest corner of said Section 21 bears
North 88 Degrees 55 Minutes 33 Seconds West a distance of 2634.46 feet;

Thence North 24 Degrees 20 Minutes 44 Seconds
West a distance of 407.41 feet to the point of beginning;

Thence North 46 Degrees 59 Minutes 09 Seconds
West a distance of 539.86 feet;

Thence North 43 Degrees 01 Minutes 12 Seconds
East a distance of 419.95 feet;

 

B-6

 

Thence South 47 Degrees 01 Minutes 22 Seconds
East a distance of 517.84 feet;

Thence South 40 Degrees 30 Minutes 19 Seconds
West a distance of 385.59 feet;

Thence South 34 Degrees 44 Minutes 31 Seconds
West a distance of 35.43 feet to the point of beginning.

 

Note: Parcel A above, is now depicted as
Parcel A, Foidel Creek Switching Substation Subdivision Exemption, according to
the plat thereof filed July 28, 2004 at File No. 13388 and Reception No. 605443.

 

Parcel B:

 

A perpetual non-exclusive right-of-way and
easement for the construction, maintenance and use of utility transmission and
distribution lines and pedestrian and vehicular ingress and egress roadway
purposes being a strip of land 25.00 feet wide, 12.50 feet on each side of the
following described centerline, located in Sections 21 and 28, all in Township
5 North, Range 86 West of the Sixth Principal Meridian, County of Routt, State
of Colorado, more particularly described as follows:

 

Commencing at the south quarter corner of
said Section 21 whence the southwest corner of said Section 21 bears
North 88 Degrees 55 Minutes 33 Seconds West a distance of 2634.46 feet;

Thence South 41 Degrees 12 Minutes 53 Seconds
West a distance of 254.22 feet to the point of beginning;

Thence along the centerline of an existing
dirt access road the following five (5) courses:

1)             Thence
North 47 Degrees 39 Minutes 38 Seconds West tangent with the following
described curve a distance of 104.52 feet;

2)             Thence
northwesterly along the arc of a curve to the right having a central angle of
59 Degrees 51 Minutes 07 Seconds, a radius of 100.00 feet, a chord bearing
North 17 Degrees 44 Minutes 04 Seconds West a distance of 99.78 feet, and an
arc distance of 104.46 feet;

3)             Thence
North 12 Degrees 11 Minutes 29 Seconds East tangent with the last and following
described curves a distance of 229.48 feet;

4)             Thence
northeasterly along the arc of a curve to the right having a central angle of
23 Degrees 47 Minutes 04 Seconds, a radius of 250.00 feet, a chord bearing of
North 24 Degrees 05 Minutes 01 Seconds East a distance of 103.04 feet, and an
arc distance of 103.78 feet;

5)             Thence
North 35 Degrees 58 Minutes 33 Seconds East tangent with the last and following
described curves a distance of 104.69 feet;

Thence northwesterly along the arc of a curve
to the left having a central angle of 85 Degrees 28 Minutes 15 Seconds, a
radius of 20.00 feet, a chord bearing North 06 Degrees 45 Minutes 34 Seconds
West a distance of 27.14 feet, and an arc distance of 29.83 feet;

Thence North 49 Degrees 29 Minutes 41 Seconds
West tangent with the last described curve a distance of 13.72 feet to the
point of termination whence said south quarter corner of Section 21 bears
South 18 Degrees 18 Minutes 59 Seconds East a distance of 435.21 feet.

Except any portion of the above description
lying within Routt County Road 33.

 

B-7

 

Parcel C:

 

A permanent non-exclusive easement for the
sole purpose of constructing, maintaining, using and removing an earthen slope
upon the following described tract of land: 
A parcel of land located in Section 21, Township 5 North, Range 86
West of the Sixth Principal Meridian, County of Routt, State of Colorado, more
particularly described as follows:

 

Commencing at the south quarter corner of
said Section 21 whence the southwest corner of said Section 21 bears
North 88 Degrees 55 Minutes 33 Seconds West a distance of 2634.46 feet;

Thence North 24 Degrees 20 Minutes 44 Seconds
West a distance of 407.41 feet to the point of beginning.

Thence North 34 Degrees 44 Minutes 31 Seconds
East a distance of 35.43 feet;

Thence North 40 Degrees 30 Minutes 19 Seconds
East a distance of 86.77 feet;

Thence South 10 Degrees 24 Minutes 31 Seconds
East a distance of 27.74 feet;

Thence South 36 Degrees 01 Minutes 50 Seconds
West a distance of 112.09 feet;

Thence North 58 Degrees 09 Minutes 06 Seconds
West a distance of 201.87 feet;

Thence North 43 Degrees 09 Minutes 31 Seconds
West a distance of 316.24 feet;

Thence North 03 Degrees 12 Minutes 11 Seconds
West a distance of 34.72 feet;

Thence South 46 Degrees 59 Minutes 09 Seconds
East a distance of 511.64 feet to the point of beginning.

 

Parcel D:

 

A permanent non-exclusive easement for the
sole purpose of constructing, maintaining, using and removing an earthen slope
upon the following described tract of land: 
A parcel of land located in Section 21, Township 5 North, Range 86
West of the Sixth Principal Meridian, County of Routt, State of Colorado, more
particularly described as follows:

 

Commencing at the south quarter corner of
said Section 21 whence the southwest corner of said Section 21 bears
North 88 Degrees 55 Minutes 33 Seconds West a distance of 2634.46 feet;

Thence North 27 Degrees 09 Minutes 49 Seconds
West a distance of 973.53 feet to the point of beginning;

Thence North 34 Degrees 30 Minutes 17 Seconds
East a distance of 172.47 feet;

Thence North 88 Degrees 25 Minutes 08 Seconds
East a distance of 35.87 feet;

Thence South 43 Degrees 01 Minutes 12 Seconds
West a distance of 195.75 feet to the point of beginning.

 

Parcel E: (TWENTYMILE 1)

 

A non-exclusive perpetual easement for the
transmission, distribution of or both, of electricity and for the transmission
of communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations on, over, under and
across a parcel of land being 75.00 feet in width, being 25.00 feet
northeasterly and 50.00 feet southwesterly of the following described
centerline located in the southeast one-quarter of the southwest one-quarter
and the southwest one-quarter of the southeast one-quarter of Section 17,
Township 5 North, Range 86  West of the
6th Principal Meridian, County of Routt, State of Colorado and more
particularly described as follows:

 

B-8

 

Commencing at the northwest corner of Section 18,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
southeast corner of Section 13, Township 5 North, Range 87 West of the 6th
Principal Meridian bears South 00 Degrees 00 Minutes 57 Seconds West 4935.76
feet, thence South 57 Degrees 46 Minutes 40 Seconds East, a distance of
7,787.70 feet to the true point of beginning;

Thence South 47 degrees 01 Minutes 22 Seconds
East along said centerline 25.00 feet southwesterly of and parallel with the
southwesterly side of an easement described in Book 376 at Page 550 of the
Routt County Clerk and Recorder’s Office a distance of 1955.11 feet to the point
of termination, whence the said southeast corner of Section 13 bears North
86 Degrees 04 Minutes 50 Seconds West 8,038.84 feet.

 

Sidelines are shortened or lengthened to
terminate at the north line of the said southeast one-quarter of the southwest
one-quarter of Section 17 and the south line of the said southwest
one-quarter of the southeast one-quarter of Section 17.

 

Parcel F: (TWENTYMILE 2A)

 

A non-exclusive perpetual easement for the
transmission, distribution, or both, of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations on, over, under and
across a parcel of land being the following widths on each side of the
following described centerline located in the southwest one-quarter of the
northwest one-quarter and the southwest one-quarter of Section 21,
Township 5 North, Range 86 West of the 6th Principal Meridian, County of Routt,
State of Colorado, and more particularly described as follows:

 

Commencing at the northwest corner of Section 18,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
southeast corner of Section 13, Township 5 North, Range 87 West of the 6th
Principal Meridian bears South 00 Degrees 00 Minutes 57 Seconds West 4,939.76
feet, thence South 53 Degrees 30 Minutes 32 Seconds East a distance of
12,864.88 feet to the true point of beginning;

 

Thence being 75.00 feet in width, 25.00 feet
on the northeasterly side and 50.00 feet on the southwesterly side of the
following described centerline:

 

South 47 Degrees 01 Minutes 22 Seconds East along said centerline 25.00
feet southwesterly of and parallel with the southwesterly side of an easement
described in Book 373 at Page 554 of the Routt County Clerk and Recorder’s
Office a distance of 2,721.52 feet;

 

Thence being variable width, 25.00 feet on
the northeasterly side and 50.00 feet to 252.32 feet on the southwesterly side
of the following described centerline:

 

South 47 Degrees 01 Minutes 22 Seconds East along said centerline 25.00
feet southwesterly of and parallel with the southwesterly side of the easements
described in Book 373 at Page 554 and in Book 373 at Page 558 of the
Routt County Clerk and Recorder’s Office a distance of 390.48 feet to the point
of termination, whence the said southeast corner of Section 13 bears North
69 Degrees 01 Minutes 58 Seconds West, 13,515.83 feet.

 

B-9

 

Sidelines are shortened or lengthened to
terminate at the West Line of said southwest one-quarter of the northwest
one-quarter of Section 21 and at the northwesterly line of Parcel A,
Foidel Creek Switching Station Minor Subdivision Exemption Plat recorded at
Reception No. 605443, the Routt County Clerk and Recorder’s Office.

 

Parcel G: (TWENTYMILE 2B)

 

A non-exclusive perpetual easement for the
transmission, distribution or both of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations on, over, under and
across a parcel of land being the following widths on each side of the
following described centerline located in the south one-half and the northeast
one-quarter of Section 21, and in the west one-half of the west one-half
and the west one-half of the east one-half of the west one-half of Section 22,
all in Township 5 North, Range 86 West of the 6th Principal Meridian, County of
Routt, State of Colorado, and more particularly described as follows:

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of said Section 12 bears North 00 Degrees 27 Minutes 10
Seconds East 5,290.40 feet, thence South 64 Degrees 04 Minutes 54 Seconds West
a distance of 20,965.20 feet to the true point of beginning;

Thence being 100.00 feet in width, 50.00 feet
on the northwesterly side and 50.00 feet on the southeasterly side of the
following described centerline:

1)             North
32 Degrees 27 Minutes 46 Seconds East along said centerline a distance of
159.65 feet;

2)             North
53 Degrees 04 Minutes 53 Seconds East along said centerline a distance of
6,118.26 feet to the point of termination, whence the said southeast corner of
said Section 12 bears North 68 Degrees 54 Minutes 22 Seconds East
14,876.10 feet.

 

Sidelines are shortened or lengthened to
terminate at the East Line of the said west one-half of the east one-half of
the west one-half of Section 22 and at the northeasterly line of the
easement which is recorded in Book 373 at Page 558 of the Routt County
Clerk and Recorder’s Office.

 

PARCEL H: (TWENTYMILE 2C)

 

A non-exclusive perpetual easement for the
transmission, distribution, or both, of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations on, over, under and
across a parcel of land located in the southeast one-quarter of the southwest
one-quarter of Section 21, Township 5 North, Range 86 West of the 6th
Principal Meridian, County of Routt, State of Colorado, and more particularly
described as follows:

 

Commencing at a point on the southeasterly
line of Parcel A, Foidel Creek Switching Station Minor Subdivision Exemption
Plat recorded at Reception No. 605443 of the Routt County Clerk and
Recorder’s office from which the point of termination of the easement described
in said TWENTYMILE 2A bears North 44 Degrees 24 Minutes 10 Seconds West 520.51
feet, and from 

 

B-10

 

which the point of beginning of the easement
described in said TWENTYMILE 2B bears North 09 Degrees 45 Minutes 38 Seconds
West 746.97 feet;

Thence North 40 Degrees 30 Minutes 19 Seconds
East a distance of 48.67 feet to the southwesterly line of the easement which
is recorded in Book 373 at Page 558 of the Routt County Clerk and Recorder’s
records;

Thence along the said southwesterly line of
Book 373 at Page 558 South 47 Degrees 00 Minutes 25 Seconds East a
distance of 224.76 feet;

Thence North 72 Degrees 00 Minutes 02 Seconds
West a distance of 243.06 feet to the southeasterly line of Parcel A, Foidel
Creek Switching Station Minor Subdivision Exemption Plat recorded at Reception No. 605443
of the Routt County Clerk and Recorder’s office;

Thence along the said southeasterly line of
Lot 1, North 40 Degrees 30 Minutes 19 Seconds East a distance of 54.12 feet to
the point of beginning.

 

PARCEL I: (TWENTYMILE 3)

 

A non-exclusive perpetual easement for the
transmission, distribution or both, of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations, on, over, under and
across a parcel of land being 100.00 feet in width, 50.00 feet on the
northwesterly side and 50.00 feet on the southeasterly side of the following
described centerline in the southeast one-quarter of the southwest one-quarter
of Section 15, Township 5 North, Range 86 West of the 6th Principal Meridian,
County of Routt, State of Colorado, and more particularly described as follows:

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of said Section 12 bears North 00 Degrees 27 Minutes 10
Seconds East 5,290.40 feet; Thence South 69 Degrees 12 Minutes 54 Seconds West
a distance of 14,598.54 feet to the true point of beginning, thence;

1)             North
53 Degrees 04 Minutes 53 Seconds East along said centerline a distance of
463.87 feet; thence

2)             North
50 Degrees 03 Minutes 30 Seconds East along said centerline a distance of 83.60
feet to the point of termination, whence the said southeast corner of said Section 12
bears North 69 Degrees 51 Minutes 07 Seconds East 14,074.55 feet.

 

Sidelines are shortened or lengthened to
terminate at the East and South Lines of the said southeast one-quarter of the
southwest one-quarter of Section15.

 

PARCEL J: (TWENTYMILE 4)

 

A non-exclusive perpetual easement for the
transmission, distribution or both, of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations, on, over, under and
across a parcel of land being the following widths on each side of the
following described centerline located in the northwest one-quarter of the
southwest one-quarter of Section 14, Township 5 North, Range 86 West of
the 6th Principal Meridian, County of Routt, State of Colorado, and more particularly
described as follows:

 

B-11

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of said Section 12 bears North 00 Degrees 27 Minutes 10
Seconds East 5,290.40 feet;

Thence South 76 Degrees 04 Minutes 57 Seconds
West, a distance of 10,862.88 feet to the true point of beginning;

Thence being 100.00 feet in width, 50.00 feet
on the northwesterly side and 50.00 feet on the southeasterly side of the
following described centerline:

1)             North
50 Degrees 03 Minutes 30 Seconds East along said centerline a distance of 50.05
feet to the point of termination, whence the said southeast corner of said Section 12
Bears North 76 Degrees 04 Minutes 57 Seconds East 10,817.92 feet.

 

Sidelines are shortened or lengthened to
terminate at the North and West Lines of the said northwest one-quarter of the
southwest one-quarter of Section 14.

 

PARCEL K: (TWENTYMILE 5)

 

A non-exclusive perpetual easement for the
transmission, distribution or both, of electricity and for the transmission of
communication signals directly associated with such electricity transmission
and/or distribution or with Grantee’s internal operations, on, over, under and
across a parcel of land being the following widths on each side of the
following described centerline located in the south one-half and the south
one-half of the northeast one-quarter of Section 1, in the southeast
one-quarter of Section 11, in the west one-half of Section 12, in the
northwest one-quarter of the northeast one-quarter of Section 14, all in
Township 5 North, Range 86 West of the 6th Principal Meridian, Tract 47, Tract
50, Tract 51, Lot 10 and Lot 11, Section 6, Township 5 North, Range 85
West of the 6th Principal Meridian, County of Routt, State of Colorado, and
more particularly described as follows:

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of said Section 12 bears North 00 Degrees 27 Minutes 10
Seconds East, 5,290.40 feet; thence South 87 Degrees 11 Minutes 50 Seconds
West, a distance of 7,894.16 feet to the true point of beginning;

Thence being 100.00 feet in width, 50.00 feet
on the northwesterly side and 50.00 feet on the southeasterly side of the
following described centerline:

1)             North 50 Degrees 03
Minutes 30 Seconds East along said centerline a distance of 3,487.16 feet;

 

Thence being 125.00 feet in width, 50.00 feet
on the northwesterly side and 75.00 feet on the southeasterly side of the
following described centerline:

1)             North
50 Degrees 03 Minutes 30 Seconds East along said centerline a distance of 25.00
feet;

2)             North
03 Degrees 31 Minutes 03 Seconds East along said centerline a distance of 25.00
feet;

 

Thence being 100.00 feet in width, 50.00 feet
on the northwesterly side and 50.00 feet on the southeasterly side of the
following described centerline:

 

B-12

 

1)             North
03 Degrees 31 Minutes 03 Seconds East along said centerline a distance of
4,321.20 feet;

 

Thence being 85.00 feet in width, 25.00 feet
on the northwesterly side and 60.00 feet on the southeasterly side of the
following described centerline:

1)             North
71 Degrees 45 Minutes 16 Seconds East along a line parallel with and 25.00 feet
southeasterly of the southeasterly line of the easement described in Deed
recorded in Book 425 at Page 25 and in Book 425 at Page 20 of the
Routt County Clerk and Recorder’s office, a distance of 5,705.00 feet;

 

Thence being 25.00 feet in width, 25.00 feet
on the northwesterly side and100.00 feet on the southeasterly side of the
following described centerline:

1)             North
71 Degrees 45 Minutes 16 Seconds East along a line parallel with and 25.00 feet
southeasterly of the southeasterly line of the easement described in Deed
recorded in Book 425 at Page 20 and in Book 399 at Page 332 of the
Routt County Clerk and Recorder’s Office, a distance of 2,145.00 feet;

 

Thence being 85.00 feet in width, 25.00 feet
on the northwesterly side and 60.00 feet on the southeasterly side of the
following described centerline:

1)             North
71 Degrees 45 Minutes 16 Seconds East along a line parallel with and 25.00 feet
southeasterly of the southeasterly line of the easement described in Deed
recorded in Book 399 at Page 332 of the Routt County Clerk and Recorder’s
office, a distance of 1,599.80 feet to the point of termination, whence the
said southeast corner of said Section 12 bears South 23 Degrees 50 Minutes
11 Seconds West 10,020.18 feet.

 

Sidelines are shortened or lengthened to
terminate at angle points and at the West Line of said northwest one-quarter of
the northeast one-quarter of said Section 14, Township 5 North, Range 86
West of the 6th Principal Meridian and the East Line of Original Government Lot
2 per U.S. Original General Land Office Plat signed February 24,1882.

 

PARCEL L: (TWENTYMILE S14A)

 

A 20 foot wide access easement (10 feet on
each side of the following described centerline) located in the southwest
one-quarter of the northeast one-quarter of Section 14, Township 5 North,
Range 86 West of the 6th Principal Meridian, County of Routt, State of
Colorado, and more particularly described as follows:

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of Section 12, Township 5 North, Range 86 West of the 6th
Principal Meridian bears North 00 Degrees 27 Minutes 10 Seconds East 5,290.40
feet, thence South 69 Degrees 58 Minutes 55 Seconds West, a distance of
7,032.27 feet to the true point of beginning;

Thence along the said centerline South 73
Degrees 18 Minutes 39 Seconds West, 68.29 feet;

Thence continuing along the said centerline
South 62 Degrees 05 Minutes 24 Seconds West, 51.61 feet;

 

B-13

 

Thence continuing along the said centerline
South 57 Degrees 06 Minutes 33 Seconds West, 50.79 feet;

Thence continuing along the said centerline
South 52 Degrees 25 Minutes 26 Seconds West, 45.79 feet;

Thence continuing along the said centerline
South 51 Degrees 00 Minutes 51 Seconds West 64.61 feet; from which the
northeast corner of said Section 12, Township 5 North, Range 86 West of
the 6th Principal Meridian, bears North 41 Degrees 19 Minutes 01 Seconds East
10,434.99 feet.

 

PARCEL M: (TWENTYMILE S14B)

 

A 20 foot wide access easement (10 feet on
each side of the following described centerline) located in the southwest
one-quarter of Section 14, Township 5 North, Range 86 West of the 6th
Principal Meridian, County of Routt, State of Colorado, and more particularly
described as follows:

 

Commencing at the southeast corner of Section 12,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
northeast corner of Section 12, Township 5 North, Range 86 West of the 6th
Principal Meridian bears North 00 Degrees 27 Minutes 10 Seconds East 5,290.40
feet, thence South 71 Degrees 58 Minutes 46 Seconds West a distance of 8,330.88
feet to the true point of beginning;

Thence along the said centerline North 74
Degrees 55 Minutes 31 Seconds West, 75.15 feet; from which the northeast corner
of Section 12, Township 5 North, Range 86 West of the 6th Principal
Meridian, bears North 45 Degrees 40 Minutes 50 Seconds East 11,232.83 feet.

 

PARCEL N: (TWENTYMILE S6)

 

A 20 foot wide access easement (10 feet on
each side of the following described centerline) located in Tract 47, Lot 11,
of Section 6, Township 5 North, Range 85 West of the 6th Principal
Meridian, County of Routt, State of Colorado, and more particularly described
as follows:

 

Beginning at a point on the West Line of
Government Lot 1 (AKA West Line of the northeast one-quarter of the northeast
one-quarter of said Section 6), from which a G.L.O. brass cap angle point
number 5 of said Tract 47 bears South 01 Degrees 37 Minutes 25 Seconds East
11.32 feet, thence along the said centerline South 86 Degrees 12 Minutes 18
Seconds West, 19.27 feet to Point C;

Thence continuing along the said centerline
South 76 Degrees 42 Minutes 48 Seconds West, 57.93 feet;

Thence continuing along the said centerline
North 80 Degrees 54 Minutes 53 Seconds West, 99.11 feet;

Thence continuing along the said centerline
North 73 Degrees 40 Minutes 47 Seconds West, 87.56 feet;

Thence continuing along the said centerline North
58 Degrees 10 Minutes 12 Seconds West, 82.12 feet;

 

B-14

 

Thence continuing along the said centerline
North 27 Degrees 48 Minutes 31 Seconds West, 43.40 feet to the termination of
this part of the access road from which the said angle point number 5 of Tract
47 bears South 71 Degrees 07 Minutes 44 Seconds East 366.93 feet

 

Together with:

 

Beginning at said Point C, thence continuing
along the said centerline North 03 Degrees 57 Minutes 55 Seconds East, 35.55
feet;

Thence continuing along the said centerline
North 03 Degrees 03 Minutes 27 Seconds East, 76.62 feet;

Thence continuing along the said centerline
North 01 Degrees 10 Minutes 41 Seconds East, 97.83 feet;

Thence continuing along the said centerline North
01 Degrees 44 Minutes 08 Seconds East, 96.08 feet;

Thence continuing along the said centerline
North 43 Degrees 40 Minutes 09 Seconds West, 113.37 feet;

Thence continuing along the said centerline
North 35 Degrees 55 Minutes 16 Seconds West, 106.91 feet;

Thence continuing along the said centerline
North 49 Degrees 11 Minutes 49 Seconds West, 47.49 feet;

Thence continuing along the said centerline
South 78 Degrees 45 Minutes 25 Seconds West, 123.78 feet;

Thence continuing along the said centerline
South 89 Degrees 38 Minutes 41 Seconds West, 122.93 feet;

Thence continuing along the said centerline
South 66 Degrees 24 Minutes 56 Seconds West, 79.48 feet;

Thence continuing along the said centerline
South 45 Degrees 15 Minutes 10 Seconds West, 98.34 feet;

Thence continuing along the said centerline
South 66 Degrees 08 Minutes 03 Seconds West, 106.37 feet;

Thence continuing along the said centerline
South 74 Degrees 38 Minutes 33 Seconds West, 117.06 feet;

Thence continuing along the said centerline
South 67 Degrees 37 Minutes 34 Seconds West, 114.49 feet;

Thence continuing along the said centerline
South 36 Degrees 43 Minutes 37 Seconds West, 65.45 feet;

Thence continuing along the said centerline
South 27 Degrees 13 Minutes 23 Seconds West, 87.85 feet;

Thence continuing along the said centerline
South 69 Degrees 13 Minutes 33 Seconds West, 130.69 feet;

Thence continuing along the said centerline
South 67 Degrees 19 Minutes 23 Seconds West, 106.30 feet;

Thence continuing along the said centerline
South 77 Degrees 11 Minutes 14 Seconds West, 94.62 feet;

Thence continuing along the said centerline
South 72 Degrees 10 Minutes 16 Seconds West, 87.98 feet;

 

B-15

 

Thence continuing along the said centerline
South 35 Degrees 05 Minutes 43 Seconds West, 105.21 feet;

Thence continuing along the said centerline
South 54 Degrees 16 Minutes 00 Seconds West, 101.03 feet;

Thence continuing along the said centerline
South 44 Degrees 49 Minutes 53 Seconds West, 88.76 feet to the termination of
this part of the access road from which the said angle point number 5 of Tract
47 bears North 82 Degrees 39 Minutes 44 Seconds East, 1,581.08 feet

 

PARCEL O: (TWENTYMILE PORTAL)

 

A 20 foot wide access easement (10 feet on
each side of the following described centerline) located in Section 21 and
in the northwest one-quarter of Section 28, all of Township 5 North, Range
86 West of the 6th Principal Meridian, County of Routt, State of Colorado, and
more particularly described as follows:

 

Commencing at the northwest corner of Section 18,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
southeast corner of Section 13, Township 5 North, Range 87 West of the 6th
Principal Meridian bears South 00 Degrees 00 Minutes 57 Seconds West 4,935.76
feet, thence South 49 Degrees 11 Minutes 23 Seconds East a distance of
16,826.32 feet to the true point of beginning;

Thence along the said centerline North 43
Degrees 19 Minutes 22 Seconds West, 103.67 feet;

Thence continuing along the said centerline
North 37 Degrees 33 Minutes 27 Seconds West, 34.02 feet;

Thence continuing along the said centerline
North 06 Degrees 38 Minutes 27 Seconds West, 70.98 feet;

Thence continuing along the said centerline
North 11 Degrees 13 Minutes 38 Seconds East, 183.89 feet;

Thence continuing along the said centerline
North 15 Degrees 18 Minutes 35 Seconds East, 70.87 feet;

Thence continuing along the said centerline
North 28 Degrees 18 Minutes 38 Seconds East, 82.79 feet;

Thence continuing along the said centerline
North 36 Degrees 36 Minutes 34 Seconds East, 256.74 feet;

Thence continuing along the said centerline
North 40 Degrees 19 Minutes 07 Seconds East, 184.38 feet;

Thence continuing along the said centerline
North 42 Degrees 35 Minutes 46 Seconds East, 716.87 feet;

Thence continuing along the said centerline
North 40 Degrees 52 Minutes 42 Seconds East, 129.67 feet;

Thence continuing along the said centerline
North 30 Degrees 21 Minutes 41 Seconds East, 119.20 feet;

Thence continuing along the said centerline
North 00 Degrees 33 Minutes 39 Seconds East, 81.20 feet;

Thence continuing along the said centerline
North 32 Degrees 02 Minutes 15 Seconds West, 90.59 feet;

 

B-16

 

Thence continuing along the said centerline
North 50 Degrees 06 Minutes 31 Seconds West, 129.78 feet;

Thence continuing along the said centerline
North 44 Degrees 36 Minutes 14 Seconds West, 94.54 feet;

Thence continuing along the said centerline
North 20 Degrees 38 Minutes 57 Seconds West, 116.35 feet;

Thence continuing along the said centerline
North 08 Degrees 07 Minutes 19 Seconds West, 286.25 feet;

Thence continuing along the said centerline
North 00 Degrees 29 Minutes 16 Seconds West, 88.95 feet;

Thence continuing along the said centerline
North 38 Degrees 11 Minutes 58 Seconds East, 74.35 feet;

Thence continuing along the said centerline
North 65 Degrees 38 Minutes 00 Seconds East, 215.11 feet;

Thence continuing along the said centerline
North 66 Degrees 28 Minutes 28 Seconds East, 97.47 feet; thence continuing
along the said centerline North 52 Degrees 11 Minutes 57 Seconds East, 113.48
feet;

Thence continuing along the said centerline
North 21 Degrees 07 Minutes 41 Seconds East, 116.83 feet;

Thence continuing along the said centerline
North 09 Degrees 29 Minutes 56 Seconds West, 116.64 feet;

Thence continuing along the said centerline
North 26 Degrees 07 Minutes 25 Seconds West, 68.77 feet;

Thence continuing along the said centerline
North 48 Degrees 21 Minutes 24 Seconds West, 65.53 feet;

Thence continuing along the said centerline
North 52 Degrees 16 Minutes 38 Seconds West, 115.26 feet;

Thence continuing along the said centerline
North 47 Degrees 02 Minutes 15 Seconds West, 208.28 feet;

Thence continuing along the said centerline
North 41 Degrees 41 Minutes 50 Seconds West, 100.94 feet;

Thence continuing along the said centerline
North 34 Degrees 35 Minutes 19 Seconds West, 81.52 feet;

Thence continuing along the said centerline
North 24 Degrees 43 Minutes 53 Seconds West, 53.80 feet;

Thence continuing along the said centerline
North 00 Degrees 51 Minutes 39 Seconds West, 53.54 feet;

Thence continuing along the said centerline
North 24 Degrees 59 Minutes 52 Seconds East, 47.55 feet;

Thence continuing along the said centerline
North 35 Degrees 42 Minutes 32 Seconds East, 101.98 feet;

Thence continuing along the said centerline
North 10 Degrees 58 Minutes 40 Seconds East, 79.66 feet;

Thence continuing along the said centerline
North 41 Degrees 23 Minutes 11 Seconds West, 58.12 feet;

 

B-17

 

Thence continuing along the said centerline
North 66 Degrees 08 Minutes 29 Seconds West, 119.28 feet;

Thence continuing along the said centerline
North 64 Degrees 41 Minutes 10 Seconds West, 67.37 feet;

Thence continuing along the said centerline
North 55 Degrees 32 Minutes 00 Seconds West, 89.62 feet;

Thence continuing along the said centerline
North 58 Degrees 34 Minutes 20 Seconds West, 83.43 feet;

Thence continuing along the said centerline
North 76 Degrees 55 Minutes 21 Seconds West, 94.35 feet;

Thence continuing along the said centerline
North 89 Degrees 59 Minutes 29 Seconds West, 113.09 feet;

Thence continuing along the said centerline
South 77 Degrees 19 Minutes 04 Seconds West, 107.77 feet;

Thence continuing along the said centerline
South 72 Degrees 04 Minutes 15 Seconds West, 205.85 feet;

Thence continuing along the said centerline
South 68 Degrees 29 Minutes 28 Seconds West, 207.27 feet;

Thence continuing along the said centerline
South 61 Degrees 47 Minutes 09 Seconds West, 156.18 feet;

Thence continuing along the said centerline
South 56 Degrees 32 Minutes 32 Seconds West, 184.18 feet;

Thence continuing along the said centerline
South 54 Degrees 51 Minutes 04 Seconds West, 177.53 feet;

Thence continuing along the said centerline
South 66 Degrees 09 Minutes 51 Seconds West, 26.10 feet;

Thence continuing along the said centerline
North 82 Degrees 28 Minutes 14 Seconds West, 52.82 feet;

Thence continuing along the said centerline
North 66 Degrees 42 Minutes 45 Seconds West, 183.63 feet;

Thence continuing along the said centerline
North 67 Degrees 22 Minutes 54 Seconds West, 213.12 feet;

Thence continuing along the said centerline
North 64 Degrees 47 Minutes 27 Seconds West, 90.05 feet;

Thence continuing along the said centerline
North 47 Degrees 36 Minutes 41 Seconds West, 71.42 feet;

Thence continuing along the said centerline
North 08 Degrees 26 Minutes 15 Seconds West, 94.84 feet;

Thence continuing along the said centerline
North 28 Degrees 13 Minutes 04 Seconds East, 128.81 feet;

Thence continuing along the said centerline
North 15 Degrees 44 Minutes 19 Seconds East, 69.22 feet;

Thence continuing along the said centerline
North 32 Degrees 42 Minutes 05 Seconds West, 62.32 feet;

Thence continuing along the said centerline
North 61 Degrees 35 Minutes 44 Seconds West, 210.32 feet;

 

B-18

 

Thence continuing along the said centerline
North 62 Degrees 59 Minutes 24 Seconds West, 217.27 feet;

Thence continuing along the said centerline
North 63 Degrees 38 Minutes 21 Seconds West, 62.28 feet;

Thence continuing along the said centerline
North 58 Degrees 32 Minutes 26 Seconds West, 97.17 feet;

Thence continuing along the said centerline
North 45 Degrees 13 Minutes 34 Seconds West, 90.95 feet;

Thence continuing along the said centerline
North 38 Degrees 44 Minutes 13 Seconds West, 238.73 feet;

Thence continuing along the said centerline
North 36 Degrees 54 Minutes 44 Seconds West, 201.79 feet;

Thence continuing along the said centerline
North 33 Degrees 47 Minutes 01 Seconds West, 143.00 feet;

Thence continuing along the said centerline
North 20 Degrees 24 Minutes 41 Seconds West, 136.44 feet;

Thence continuing along the said centerline
North 03 Degrees 47 Minutes 45 Seconds West, 89.72 feet;

Thence continuing along the said centerline
North 01 Degrees 30 Minutes 02 Seconds East, 126.05 feet;

Thence continuing along the said centerline
North 88 Degrees 23 Minutes 10 Seconds West, 27.55 feet, from which the
southeast corner of Section 13, Township 5 North, Range 87 West of the 6th
Principal Meridian bears North 84 Degrees 48 Minutes 02 Seconds West 10,417.49
feet.

 

PARCEL P: (TWENTYMILE NORTH PORTAL)

 

A 20 foot wide access easement (10 feet on
each side of the following described centerline) located in the northwest
one-quarter of the northwest one-quarter of Section 21, the southwest
one-quarter of the southwest one-quarter of Section 16, and the south
one-half of the southeast one-quarter and the southeast one-quarter of the
southwest one-quarter of Section 17, all in Township 5 North, Range 86
West of the 6th Principal Meridian, County of Routt, State of Colorado, and
more particularly described as follows:

 

Commencing at the northwest corner of Section 18,
Township 5 North, Range 86 West of the 6th Principal Meridian, whence the
southeast corner of Section 13, Township 5 North, Range 87 West of the 6th
Principal Meridian bears South 00 Degrees 00 Minutes 57 Seconds West 4,935.76
feet, thence South 60 Degrees 30 Minutes 58 Seconds East a distance of
11,948.15 feet to the true point of beginning;

Thence along the said centerline North 01
Degrees 30 Minutes 02 Seconds East, 122.14 feet;

Thence continuing along the said centerline
North 01 Degrees 31 Minutes 39 Seconds East, 197.47 feet;

Thence continuing along the said centerline
North 01 Degrees 47 Minutes 45 Seconds East, 166.05 feet;

Thence continuing along the said centerline
North 02 Degrees 07 Minutes 48 Seconds West, 156.45 feet;

 

B-19

 

Thence continuing along the said centerline
North 12 Degrees 35 Minutes 32 Seconds West, 99.80 feet;

Thence continuing along the said centerline
North 22 Degrees 29 Minutes 51 Seconds West, 152.87 feet;

Thence continuing along the said centerline
North 30 Degrees 25 Minutes 00 Seconds West, 121.08 feet;

Thence continuing along the said centerline
North 44 Degrees 23 Minutes 44 Seconds West 156.62 feet;

Thence continuing along the said centerline
North 55 Degrees 09 Minutes 18 Seconds West, 138.61 feet;

Thence continuing along the said centerline
North 70 Degrees 16 Minutes 29 Seconds West, 77.96 feet;

Thence continuing along the said centerline
North 80 Degrees 06 Minute 01 Seconds West, 131.43 feet;

Thence continuing along the said centerline North
79 Degrees 24 Minutes 51 Seconds West, 358.26 feet;

Thence continuing along the said centerline
North 81 Degrees 05 Minutes 11 Seconds West, 184.65 feet;

Thence continuing along the said centerline
South 63 Degrees 53 Minutes 45 Seconds West, 22.83 feet;

Thence continuing along the said centerline
South 59 Degrees 46 Minutes 30 Seconds West, 96.95 feet;

Thence continuing along the said centerline
South 46 Degrees 16 Minutes 59 Seconds West, 126.33 feet;

Thence continuing along the said centerline
South 50 Degrees 14 Minutes 50 Seconds West, 33.33 feet;

Thence continuing along the said centerline
North 59 Degrees 08 Minute 19 Seconds West, 31.60 feet;

Thence continuing along the said centerline
North 29 Degrees 07 Minutes 26 Seconds West, 126.76 feet

Thence continuing along the said centerline
North 30 Degrees 20 Minutes 00 Seconds West, 117.53 feet;

Thence continuing along the said centerline
North 29 Degrees 21 Minutes 32 Seconds West, 198.57 feet;

Thence continuing along the said centerline
North 30 Degrees 05 Minutes 49 Seconds West, 124.26 feet;

Thence continuing along the said centerline
North 38 Degrees 44 Minute 09 Seconds West, 23.38 feet;

Thence continuing along the said centerline
North 54 Degrees 59 Minutes 48 Seconds West, 24.21 feet;

Thence continuing along the said centerline
North 88 Degrees 04 Minutes 08 Seconds West, 164.71 feet;

Thence continuing along the said centerline
South 89 Degrees 47 Minutes 11 Seconds West, 155.85 feet;

Thence continuing along the said centerline
South 89 Degrees 29 Minutes 28 Seconds West, 285.54 feet;

 

B-20

 

Thence continuing along the said centerline
South 89 Degrees 36 Minutes 01 Seconds West, 228.57 feet;

Thence continuing along the said centerline
South 89 Degrees 46 Minutes 37 Seconds West, 241.88 feet;

Thence continuing along the said centerline
North 89 Degrees 58 Minutes 33 Seconds West, 154.45 feet;

Thence continuing along the said centerline
South 89 Degrees 24 Minutes 14 Seconds West, 138.11 feet;

Thence continuing along the said centerline
South 89 Degrees 22 Minutes 03 Seconds West, 97.29 feet;

Thence continuing along the said centerline
South 83 Degrees 06 Minutes 07 Seconds West, 50.83 feet;

Thence continuing along the said centerline
South 66 Degrees 40 Minutes 42 Seconds West, 73.32 feet;

Thence continuing along the said centerline
South 63 Degrees 06 Minutes 59 Seconds West, 98.66 feet;

 

Thence continuing along the said centerline
South 42 Degrees 59 Minutes 35 Seconds West, 115.78 feet to the northeasterly
line of an easement which is recorded in Book 373 at Page 550 of the Routt
County Clerk and Recorder’s office, from which the southeast corner of Section 13,
Township 5 North, Range 87 West of the 6th Principal Meridian bears South 85
Degrees 15 Minutes 01 Seconds West 7,017.25 feet.

 

Basis of bearings for Parcels E through P –
Bearings are grid bearings, Colorado Coordinate System, NAD 83(1992), North
Zone and are based upon the direction from NGS stainless steel rod “JONES”
located at the Bob Adams Field Airport to USC&GS bench mark “F-28” located
approximately 0.75 miles west of Milner as being South 74 Degrees 52 Minutes 45
Seconds West, said legal descriptions being prepared by James B. Ackerman,
R.L.S. 16394.

 

Part Seventh
– Electric Transmission and Distribution Lines

 

Arapahoe County

 

Daniels Park – Ft. Lupton Line /The
Southlands Tract

 

A parcel of land in the Southeast one-quarter
of Section 19, Township 5 South, Range 65 West of the Sixth Principal
Meridian, City of Aurora, County of Arapahoe, State of Colorado, described as
follows:

 

Commencing at the East quarter corner of said
Section 19 and considering the North Line of said Southeast one-quarter of
Section 19 to bear South 89 Degrees 21 Minutes 35 Seconds West with all
bearings herein relative thereto; thence South 89 Degrees 21 Minutes 35 Seconds
West along said North Line, a distance of 1,235.85 feet to the point of
beginning, also being a point on the South Line of a Public Service Company
parcel recorded in Book 1236 at page 393 of the Arapahoe County records;
thence South 00 Degrees 43 Minutes 48 Seconds East, a distance of 

 

B-21

 

587.35 feet; thence South 32 Degrees 24
Minutes 37 Seconds West, a distance of 1,441.22 feet to a point on the
northerly line of the proposed Smoky Hill Road Right-of-Way; thence North 58
Degrees 37 Minutes 52 Seconds West along said northerly line a distance of
411.11 feet; thence North 60 Degrees 26 Minutes 06 Seconds East, a distance of
121.40 feet; thence North 32 Degrees 24 Minutes 37 Seconds East, a distance of
991.31 feet to a point of curvature; thence along the arc of a 823.00 foot
radius curve to the left through a central angle of 33 Degrees 08 Minutes 25
Seconds, a distance of 476.03 feet and having a chord which bears North 15
Degrees 50 Minutes 24 Seconds East, a distance of 469.42 feet; thence North 00
Degrees 43 Minutes 48 Seconds West, a distance of 237.69 feet to a point on the
South Line of said Public Service Company parcel and said North Line of the
Southeast one-quarter of Section 19; thence North 89 Degrees 21 Minutes 35
Seconds East along said North and South Lines, a distance of 125.00 feet;
thence South 00 Degrees 43 Minutes 48 Seconds East, a distance of 237.50 feet
to a point of curvature; thence along the arc of a 948.00 foot radius curve to
the right through a central angle of 33 Degrees 08 Minutes 25 Seconds, a
distance of 548.33 feet and having a chord which bears South 15 Degrees 50
Minutes 24 Seconds West, a distance of 540.72 feet; thence South 32 Degrees 24
Minutes 37 Seconds West, a distance of 1,057.37 feet; thence North 69 Degrees
48 Minutes 30 Seconds East, a distance of 171.24 feet; thence North 32 Degrees
24 Minutes 37 Seconds East, a distance of 921.33 feet to a point of curvature;
thence along the arc of a 1,052.00 foot radius curve to the left through a
central angle of 33 Degrees 08 Minutes 25 Seconds, a distance of 608.48 feet
and having a chord which bears North 15 Degrees 50 Minutes 24 Seconds East, a
distance of 600.04 feet; thence North 00 Degrees 43 Minutes 48 Seconds West, a
distance of 237.33 feet to a point on the South Line of said Public Service
Company parcel and said North Line of the Southeast one-quarter of Section 19;
thence North 89 Degrees 21 Minutes 35 Seconds East along said North and South
Lines, a distance of 125.00 feet to the point of beginning.

 

Containing 503,002 square feet or 11.5473
acres, more or less.

 

B-22Exhibit 10.1

 

AGREEMENT

 

THIS AGREEMENT (this “Agreement”) is made as of the 19th day of
August, 2005 (the “Effective Date”)
by and between MAXIM PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and LARRY G. STAMBAUGH, an
individual (“Stambaugh”).

 

Background

 

A.                                   Stambaugh
is currently the Chairman, President and Chief Executive Officer of the
Company, and has served in these capacities since 1993.

 

B.                                     On
or about December 8, 2000, the Company entered into a $2.85 million full
recourse, interest bearing, secured revolving promissory note with Stambaugh,
which was amended as of December 8, 2001 (the “Loan”).  The purpose of
the Loan was to avoid the necessity of any officer selling the Company’s stock
during periods of volatility and was viewed at the time to be in the best
interest of the Company and its shareholders. 
Since the original date of the Loan to the Effective Date, Stambaugh has
paid approximately $394,000 in interest on the Loan, and has additionally
forfeited to the Company all security pledged for the Loan.  The Loan is currently in default, but the
Loan has not (and will not) be in any manner modified or extended by the
Company.  The current amount owed by
Stambaugh under the Loan, including accrued interest, is referred to herein as
the “Aggregate Loan Indebtedness”.

 

C.                                     The
Compensation Committee of the Company’s Board of Directors, together with the
Company’s full Board of Directors (other than Stambaugh),  has extensively reviewed and analyzed, among
other matters and factors, the Loan, all related facts and circumstances,
including the Company’s current needs, prospects and contingency plans,
Stambaugh’s current assets and liabilities and the Company’s resulting ability
or inability to collect the Aggregate Loan Indebtedness, and the best interests
of the Company’s stockholders and creditors.

 

D.                                    In
the context of the foregoing background, the parties are entering into this
Agreement.

 

Agreement

 

1.                                       Forgiveness.  Based on the factors set forth above, and in
consideration of such factors, the Company does hereby forgive all remaining
Aggregate Loan Indebtedness, including any accrued and/or unpaid interest,
under the Loan as of the Effective Date of this Agreement (the “Note Forgiveness”). 
The Loan is not amended, modified or extended as a result of such Note
Forgiveness, but instead is hereby extinguished and no amounts remain
outstanding.

 

2.                                       Release.

 

(a)                                  Except
for the obligations created by this Agreement, Stambaugh hereby forever
releases and discharges the Company and its past and present officers,
directors, agents, employees, shareholders, attorneys, accountants,
consultants, successors, assignees and representatives from any and all causes
of action, actions, judgments, liens, indebtedness, damages, losses, claims,
claims for relief, claims in bankruptcy, liabilities and demands of every

 

 

kind and character, whether known or unknown, in any way arising out of
or in connection with the Loan, including, without limitation, any claim
arising out of or relating to any discussions or negotiations pertaining to the
Loan, the request of the Company that Stambaugh enter into the Loan in lieu of
selling Company stock or Stambaugh’s decision to borrow (or the Company’s
actions in lending) any amount thereunder.

 

(b)                                 In
furtherance of these intentions, Stambaugh hereby expressly waives any and all
rights or benefits conferred by the provisions of Section 1542 of the
California Civil Code and any similar provisions under the laws of any other
state or under federal law and expressly consents that this Agreement shall be
given full force and effect according to each and all of its express terms and
conditions, including those relating to unknown and unsuspected claims,
demands, and causes of action, if any, in any way relating to the Loan.  Section 1542 of the California Civil
Code provides as follows:

 

A general release
does not extend to claims which the creditor does not know or suspect to exist
in his favor at the time of executing the release, which if known by him must
have materially affected his settlement with the debtor.

 

(c)                                  Stambaugh
represents and warrants that he has not assigned or transferred, or purported
to assign or transfer, to any person or entity any claim, right, or cause of
action released hereunder, and further agrees to indemnify the Company and all
of the other released persons and entities against any liability, loss, damage,
cost or expense, and including actual attorneys fees, arising out of any breach
of this representation and warranty.

 

4.                                       Miscellaneous.

 

(a)                                  Construction.  The language of this Agreement has been
negotiated between the parties and shall be construed simply, according to its
plain meaning, and not strictly for or against either party regardless of the
source of draftsmanship.

 

(b)                                 Counterparts.  This Agreement may be executed in
counterparts, and each counterpart, once executed, shall have the efficacy of a
signed original.  True and correct copies
of signed counterparts may be used in place of originals for any purpose.  Signatures transmitted electronically or via
facsimile shall be deemed to be original signatures.

 

(c)                                  Attorneys’
Fees And Costs.  In the event of
future litigation in connection with or concerning the subject matter of this
Agreement or any breach of this Agreement, the prevailing party shall be
entitled to recover all costs and expenses incurred by that party, including
actual attorneys fees, expert and consultant fees, and costs in addition to any
other relief to which it may be entitled. 
The parties further agree that the prevailing party shall be entitled to
recover all costs, including actual attorney’s fees and costs, of collecting
any costs and expenses awarded pursuant to the prior provision.

 

(d)                                 Independent
Legal Advice.  The parties
acknowledge that they have been advised by their own independently selected
counsel and other advisors in connection with this Agreement and enter into
this Agreement solely on the basis of that advice and on the basis of their own
independent investigation of all of the facts, laws, and circumstances material
to this

 

2

 

Agreement or any provision hereof and not in any manner or to any
degree based upon any statement or omission by any other party and/or their
counsel.

 

(e)                                  Authority
To Execute Agreement.  Each person
whose signature appears hereon represents, warrants and guarantees that he has
been duly authorized and has full authority to execute this Agreement on behalf
of the party on whose behalf this Agreement is executed.

 

(f)                                    Binding
Agreement.  This Agreement shall be
binding upon the parties and their successors in interest and assigns.

 

(g)                                 No
Modification.  No term of this
Agreement shall be modified, waived, or changed except by an instrument in
writing signed by both parties.

 

(h)                                 Severability.  If for any reason any clause or provision of
this Agreement should be held unenforceable, invalid or in violation of law by
any court or other tribunal, then the remaining clauses and provisions hereof
shall nevertheless remain in full force and effect.

 

BY
EXECUTING THIS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES THAT IT OR HE HAS
READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ITS TERMS AND PROVISIONS.

 

IN WITNESS WHEREOF, the parties have entered
into and delivered this Agreement as of the Effective Date.

 

	
  MAXIM PHARMACEUTICALS, INC.

  	
  LARRY G. STAMBAUGH

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ F.
  Duwaine Townsen

  	
   

  	
  By:

  	
  /s/ Larry G.
  Stambaugh

  	
   

  
	
   

  	
  F. Duwaine
  Townsen

  	
   

  	
  Larry G.
  Stambaugh

  
	
   

  	
  Lead
  Independent Director of

  the Board of Directors

  	
   

  	
   

  
						

 

3

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