Document:

Exhibit
4.01

 

 

FINANCING
AGREEMENT

 

between

 

ADAMS
COUNTY, COLORADO

 

and

 

PUBLIC
SERVICE COMPANY OF COLORADO

 

 

Dated as of August 1, 2005

 

 

relating to

 

$129,500,000

Adams
County, Colorado

Pollution
Control Refunding Revenue Bonds,

2005
Series A

(Public
Service Company of Colorado Project)

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.02

  	
  Rules of
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  Representations and
  Warranties of the County

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.02

  	
  Representations and
  Warranties of the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  THE FACILITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Facilities Property of
  Company

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.02

  	
  No
  Warranty of Condition or Suitability by the County

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  ISSUANCE OF THE
  2005 SERIES A BONDS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Issuance
  of the 2005 Series A Bonds

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.02

  	
  Redemption of the
  1993 Adams County Bonds and the 1993 Morgan County Bonds

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.03

  	
  Disposition of 2005
  Series A Bond Proceeds

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.04

  	
  Agreement to Provide
  Balance of Moneys to Redeem

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  PAYMENTS TO BE
  MADE BY THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Debt Service Payments

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.02

  	
  Obligation
  Absolute

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.03

  	
  Payment
  of Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.04

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.05

  	
  Payments
  to the Bond Insurer

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.06

  	
  Amounts
  Remaining in Bond Fund

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  SPECIAL
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Maintenance
  of Corporate Existence; Merger, Consolidation, and Disposition of Assets

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.02

  	
  Further Assurances

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.03

  	
  Tax
  Covenant with Respect to 2005 Series A Bonds

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.04

  	
  Maintenance
  of the Facilities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.05

  	
  Insurance
  of the Facilities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.06

  	
  Application of Insurance
  Proceeds and Condemnation Awards

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.07

  	
  Use
  of Facilities

  	
   

  
				

 

i

 

	
  Section 6.08

  	
  Discontinuance,
  Sale or Other Disposition of the Facilities

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.09

  	
  Financing Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.10

  	
  Information
  Reporting Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Assignment
  by the Company

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.02

  	
  Assignment
  by the County

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  EVENTS OF
  DEFAULT AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Events
  of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.02

  	
  Remedies

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.03

  	
  No
  Remedy Exclusive

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.04

  	
  Reimbursement
  of Attorneys’ Fees

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.05

  	
  Waiver of Breach

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  REDEMPTION OR
  DEFEASANCE OF THE 2005 SERIES A BONDS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  Right
  to Effect Redemption or Defeasance

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.02

  	
  Exercise
  of Right to Redeem or Defease

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.03

  	
  Mandatory
  Prepayment

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.04

  	
  Purchase of 2005
  Series A Bonds

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.05

  	
  Amendment
  of Note Upon Partial Redemption or Purchase of 2005 Series A

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  RIGHTS OF THE
  BOND INSURER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Rights of the Bond Insurer

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.02

  	
  Reporting
  Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 10.03

  	
  Limitation on Rights of
  the Bond Insurer

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Term
  of Agreement

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.02

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.03

  	
  Governing
  Law

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.04

  	
  Payments
  and Performance Due on Holidays

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.05

  	
  Parties
  in Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.06

  	
  No
  Pecuniary Liability of the County

  	
   

  
				

 

ii

 

	
  Section 11.07

  	
  Amendments

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.08

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 11.09

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  FACILITIES

  	
   

  
	
   

  	
   

  
	
  EXHIBIT B

  	
  DISCONTINUED FACILITIES

  	
   

  
	
   

  	
   

  
	
  EXHIBIT C

  	
  FORM OF THE NOTE

  	
   

  
				

 

iii

 

FINANCING
AGREEMENT

 

THIS FINANCING AGREEMENT, dated as of August 1, 2005 (this “Agreement”),
between ADAMS COUNTY, COLORADO, a public body corporate and politic organized
and existing as a county within the State of Colorado under the Constitution
and laws of such State (the “County”), and PUBLIC SERVICE COMPANY OF
COLORADO, a corporation organized and existing under the laws of the State of
Colorado (the “Company”),

 

WITNESSETH:

 

WHEREAS, the County is authorized under the County and Municipality
Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado
Revised Statutes, as amended (the “Act”), among other things, to finance
and to issue revenue bonds for the purpose of defraying the cost of financing,
acquiring, constructing, improving and equipping pollution control facilities (as
defined in the Act) and solid waste disposal facilities and to enter into
financing agreements for the purpose of providing revenues to pay such revenue
bonds; and

 

WHEREAS, the County has heretofore issued and
sold its “Adams County, Colorado, Pollution Control Refunding Revenue Bonds,
1993 Series A (Public Service Company of Colorado Project)” (the “1993
Adams County Bonds”) in the original aggregate principal amount of
$79,500,000 for the purpose of providing funds in the amount necessary,
together with other available moneys, to effect the redemption of $37,500,000
aggregate principal amount of “Adams County, Colorado, Collateralized Pollution
Control Revenue Bonds (Public Service Company of Colorado Project) Series 1974”
(the “1974 Adams County Bonds”), and $42,000,000 aggregate principal
amount of “Adams County, Colorado, Pollution Control Revenue Bonds (Public
Service Company of Colorado Project) 1983 Series A” (the “1983 Adams
County Bonds”); and

 

WHEREAS, the 1974 Adams County Bonds were
issued to defray the costs of the Company for financing, acquiring,
constructing and equipping certain air and water pollution control facilities
(the “1974 Facilities”) at the Company’s Cherokee Steam Electric
Generating Station (the “Cherokee Plant”) located within the boundaries
of the County, at the Company’s Cameo Steam Electric Generating Station (the “Cameo
Plant”) located within Mesa County, Colorado, at the Company’s Arapahoe
Steam Electric Generating Station (the “Arapahoe Plant”) located within
the boundaries of the City and County of Denver, Colorado, at the Company’s
Zuni Steam Electric Generating Station (the “Zuni Plant”) located within
the City and County of Denver, Colorado, and at the Company’s Valmont Steam
Electric Generating Station (the “Valmont Plant”) located within the
boundaries of Boulder County, Colorado; and

 

WHEREAS, the 1983 Adams County Bonds were issued to defray the costs of
the Company of financing, acquiring, constructing and equipping certain air and
water pollution control facilities (the “1983 Facilities”) at the
Cherokee Plant, the Arapahoe Plant, and the Valmont Plant; and

 

WHEREAS, Morgan County, Colorado (“Morgan County”) has
heretofore issued and sold its “Morgan County, Colorado, Pollution Control
Refunding Revenue Bonds, 1993 Series A

 

 

(Public Service Company of Colorado Project)”
in the original aggregate principal amount of $50,000,000 (the “1993 Morgan
County Bonds”) for the purpose of providing funds in the amount necessary,
together with other available moneys, to effect the redemption of $50,000,000
aggregate principal amount of “Morgan County, Colorado Pollution Control
Revenue Bonds, 1979 Series A (Public Service Company of Colorado Project)”
(the “1979 Morgan County Bonds”); and

 

WHEREAS, the 1979 Morgan County Bonds were issued by Morgan County to
defray the costs of the Company of financing, acquiring, constructing and
equipping certain air and water pollution control and solid waste disposal
facilities (the “1979 Facilities”) at the Company’s Pawnee Steam Electric
Generating Station (the “Pawnee Plant”) in Morgan County; and

 

WHEREAS, the County is authorized by the Act to issue its revenue bonds
to refund any bonds issued by the County under the Act and to refund bonds
issued by other counties or municipalities that have delegated their respective
bond authority under the Act to the County; and

 

WHEREAS, the Company has requested the County to issue refunding bonds
in an amount sufficient, together with other moneys available therefor, to
effect the redemption of the outstanding 1993 Adams County Bonds and the 1993
Morgan County Bonds; and

 

WHEREAS, pursuant to a resolution of the Board of County Commissioners
of Morgan County adopted on July 26, 2005, Morgan County has delegated its
bond authority with respect to refunding the 1993 Morgan County Bonds to Adams
County; and

 

WHEREAS, the County has determined to issue its Pollution Control
Refunding Revenue Bonds, 2005 Series A (Public Service Company of Colorado
Project) (the “2005 Series A Bonds”) in an original aggregate
principal amount of $129,500,000, under an Indenture of Trust, dated as of August 1,
2005 (the “Indenture”), by and between the County and U.S. Bank
National Association, as Trustee (the “Trustee”), and pursuant to the
Act and the Supplemental Public Securities Act constituting Title 11, Article 57,
Part 2, Colorado Revised Statutes, as amended, for the purpose of
providing moneys that, together with certain other funds, will be in an amount
sufficient to effect the refunding of the 1993 Adams County Bonds and the 1993
Morgan County Bonds; and

 

WHEREAS, concurrently with the execution and delivery of this
Agreement, and as a condition to the execution and delivery hereof, the County
and the Trustee will execute and deliver the Indenture, and the County will
issue the 2005 Series A Bonds in accordance with the terms and conditions
thereof.

 

NOW, THEREFORE, the parties hereto, intending to be legally bound
hereby and in consideration of the premises, DO HEREBY AGREE as follows:

 

2

 

ARTICLE 1

DEFINITIONS

 

Section 1.01           Definitions.  Unless otherwise provided in this Article I,
for purposes of this Agreement, (i) terms defined in the recitals hereto
have the meanings so given to them therein, (ii) capitalized terms used
but not defined herein have the meanings given to them in the Indenture, and (iii) if
the context of the use of a capitalized term clearly requires that the common
meaning or an alternative meaning for such term should apply, such common meaning
or alternative meaning, as the case may be, shall be given effect.  The following terms shall for all purposes of
this Agreement have the meanings herein specified, unless the context clearly
requires otherwise:

 

(a)           “Act” means the
County and Municipality Development Revenue Bond Act, constituting Article 3
of Title 29, Colorado Revised Statutes, as amended, and all acts supplemental
thereto or amendatory thereof.

 

(b)           “Administration
Expenses” means the fees of the County, and the reasonable and necessary
expenses incurred by the County, with respect to this Agreement, the Indenture
and any transaction or event contemplated by this Agreement or the Indenture,
including the ordinary and extraordinary compensation and reimbursement of
expenses and advances payable to the Trustee.

 

(c)           “Agreement”
means this Financing Agreement, and any and all modifications, alterations,
amendments and supplements hereto.

 

(d)           “Arapahoe Facilities”
means the air and water pollution control facilities currently in operation at
the Arapahoe Plant that are described in Part I of Exhibit A
hereto.

 

(e)           “Authorized Company
Representative” means each person at the time designated to act on behalf
of the Company by written certificate furnished to the County and the Trustee
containing the specimen signature of such person and signed on behalf of the
Company by its President or any Vice President, Chief Financial Officer, or its
Treasurer together with its Secretary or any Assistant Secretary.

 

(f)            “Bond Fund”
means the fund created by Section 5.01 of the Indenture.

 

(g)           “Bond Insurer”
means MBIA Insurance Corporation, a New York stock insurance company, its
successors and assigns.

 

(h)           “Bond Insurer
Default”  means the occurrence and
continuance of one or more of the following events: (i) the declaration by
the Bond Insurer or otherwise that the Financial Guaranty Insurance Policy is
null and void prior to the full payment to the Owners of the 2005 Series A
Bonds of the principal thereof and the interest thereon; (ii) the issuance
of an order of liquidation or dissolution of the Bond Insurer; (iii) the
commencement by the Bond Insurer of a voluntary case or other proceeding
seeking liquidation, reorganization, or other relief with respect to itself or
its debts under any bankruptcy, insolvency, or other similar law now or
hereafter in effect including, without limitation, the appointment of a
trustee, receiver, liquidator, custodian or other similar official for itself
or any substantial part of its property; (iv) the consent

 

3

 

of the
Bond Insurer to any relief referred to in the preceding clause (iii) in an
action against the Bond Insurer in an involuntary case or other proceeding
seeking liquidation, reorganization, or other relief with respect to the Bond
Insurer or its debts under any bankruptcy, insolvency, or similar law now or
hereafter in effect; (v) the making by the Bond Insurer of an assignment
for the benefit of creditors; (vi) the failure of the Bond Insurer to
generally pay its debts as they become due; or (vii) a default by the Bond
Insurer under the Financial Guaranty Insurance Policy.

 

(i)            “Bond Purchase
Agreement” means the Bond Purchase Agreement among the County and the
Underwriters, relating to the 2005 Series A Bonds.

 

(j)            “Business Day”
means a day on which (i) banks located in the respective cities in which
the Principal Office of the Trustee is located and in which the Bond Insurer’s
principal office is located and in Minneapolis, Minnesota are not required or authorized
by law to remain closed and (ii) the New York Stock Exchange is not
closed.

 

(k)           “Cameo Facilities”
means the air and water pollution control facilities currently in operation at
the Cameo Plant that are described in Part II of Exhibit A
hereto.

 

(l)            “Cherokee
Facilities” means the air and water pollution control facilities currently
in operation at the Cherokee Plant that are described in Part III of Exhibit A
hereto.

 

(m)          “Code” means the
Internal Revenue Code of 1986, as amended. 
Each reference to a section of the Code herein shall be deemed to
include the United States Treasury Regulations proposed or in effect thereunder
and applicable to the 2005 Series A Bonds or the use of the proceeds
thereof, unless the context clearly requires otherwise.

 

(n)           “Company” means
Public Service Company of Colorado, a corporation organized and existing under
the laws of the State of Colorado, its successors and assigns.

 

(o)           “Company Mortgage”
means the Indenture, dated as of October 1, 1993, between the Company and
U.S. Bank Trust National Association, as Trustee, as the same has been, may be
concurrently, or from time to time hereafter may be amended or supplemented in
accordance with its terms.

 

(p)           “County” means
Adams County, Colorado, a public body corporate and politic organized and
existing as a county within the State of Colorado under the Constitution and
laws of such State.

 

(q)           “Discontinued
Facilities” means, collectively, (i) the facilities and equipment at
the Arapahoe Plant, the Cameo Plant, the Cherokee Plant, the Valmont Plant and
the Zuni Plant described in Exhibit B hereto, the cost of the
acquisition, construction or installation of which were financed, in whole or
in part, with proceeds of the 1974 Adams County Bonds or the 1983 Adams County
Bonds, but which heretofore have been taken out of service or disposed of by
the Company, and (ii) the facilities and equipment at the Pawnee Plant
described in Exhibit B hereto, the cost of the acquisition,
construction or installation of which were financed, in whole or in part, with
proceeds of the 1979 Morgan County Bonds, but which heretofore have been taken
out of service or disposed of by the Company.

 

4

 

(r)            “Engineer’s
Certificate” means the certificate of Utility Engineering Corp., dated the
date of issuance of the 2005 Series A Bonds, contained in the Tax
Compliance Certificate.

 

(s)           “Facilities”
means, collectively, (i) the Arapahoe Facilities, the Cameo Facilities,
the Cherokee Facilities, the Valmont Facilities, and the Zuni Facilities
described in Exhibit A hereto, the cost of the acquisition,
construction or installation of which were financed, in whole or in part, with
proceeds of the 1974 Adams County Bonds or the 1983 Adams County Bonds, and (ii) the
Pawnee Facilities described in Exhibit A hereto, the cost of the
acquisition, construction or installation of which were financed, in whole or
in part, with proceeds of the 1979 Morgan County Bonds.  The Facilities do not and shall not include
any Discontinued Facilities.

 

(t)            “Financial Guaranty
Insurance Policy” means the Financial Guaranty Insurance Policy issued by
the Bond Insurer insuring the regularly scheduled payment when due of the
principal of and interest on the 2005 Series A Bonds, as provided therein.

 

(u)           “Indenture”
means the Indenture of Trust, dated as of August 1, 2005, between the
County and the Trustee, and any and all modifications, alterations, amendments
and supplements thereto.

 

(v)           “Insurance Agreement”
means the Insurance and Reimbursement Agreement, dated as of August 1,
2005, among the Company, the Trustee, and the Bond Insurer, as the same from
time to time may be amended or supplemented in accordance with its terms.

 

(w)          “1954 Code” means
the Internal Revenue Code of 1954, as amended, and the regulations promulgated
thereunder.

 

(x)            “1993 Adams County
Bonds Indenture” means the Indenture of Trust, dated as of April 1,
1993, between the County and Colorado National Bank, as Trustee, relating to
the 1993 Adams County Bonds.

 

(y)           “1993 Adams County
Bonds Trustee” means U.S. Bank National Association, successor to Colorado
National Bank, as Trustee under the 1993 Adams County Bonds Indenture.

 

(z)            “1993 Morgan County
Bonds Indenture” means the Indenture of Trust, dated as of June 1,
1993, between the County and Colorado National Bank, as Trustee, relating to
the 1993 Morgan County Bonds.

 

(aa)         “1993 Morgan County
Bonds Trustee” means U.S. Bank National Association, successor to Colorado
National Bank, as Trustee under the 1993 Morgan County Bonds Indenture.

 

(bb)         “Note” means the
Promissory Note, dated the date of issuance of the 2005 Series A Bonds, in
substantially the form attached as Exhibit C to this Agreement, to
be executed by the Company and issued to the County, and endorsed by the County
to the Trustee, in accordance with Section 5.01(a) hereof.

 

5

 

(cc)         “Owner” means the
person in whose name any 2005 Series A Bond is registered upon the
registration records of the Registrar maintained pursuant to the Indenture.

 

(dd)         “Pawnee Facilities”
means the air and water pollution control facilities and solid waste disposal
facilities currently in operation at the Pawnee Plant that are described in Part VI
of Exhibit A hereto.

 

(ee)         “Plants” means,
collectively, the Arapahoe Plant, the Cameo Plant, the Cherokee Plant, the
Valmont Plant, the Zuni Plant, and the Pawnee Plant.  “Plant” means any one of the Plants,
as the context requires.

 

(ff)           “Refunding
Obligations” means any series of bonds or notes issued by the County
pursuant to the Act, the proceeds of which are used, in whole or in part, to
provide for the payment, at or prior to maturity, together with other moneys
available therefor, of all or any portion of the Outstanding 2005 Series A
Bonds.

 

(gg)         “Registrar” means
the Trustee acting in its capacity as Registrar of the 2005 Series A Bonds
in accordance with the Indenture.

 

(hh)         “Regulated Utility
Corporation” means, for so long as any Colorado corporation engaged in the
generation and distribution of electricity or the transportation and
distribution of natural gas is regulated by the Colorado Public Utilities
Commission, a corporation (or other entity) engaged in the generation and
distribution of electricity or the transportation and distribution of natural
gas, which is regulated by the Colorado Public Utilities Commission or a
successor thereto that is reasonably acceptable to the Bond Insurer.

 

(ii)           “Tax Certificate”
means the Tax Certificate as to Arbitrage and the Provisions of the Internal
Revenue Code of 1954 and the Internal Revenue Code of 1986, to be dated the
date of original issuance of the 2005 Series A Bonds and to be executed by
the County and acknowledged and agreed to by the Company, as from time to time
modified pursuant to its terms.

 

(jj)           “Trustee” means
U.S. Bank National Association, a national banking association, as trustee
under the Indenture, and its successors in trust and their assigns.

 

(kk)         “2005 Series A
Bonds” means the series of bonds authorized to be issued under Section 2.01
of the Indenture.

 

(ll)           “Underwriters”
means, collectively, Citigroup Global Markets, Inc., BNY Capital Markets,
and Goldman Sachs & Co.,  and
their respective successors and assigns.

 

(mm)       “Valmont Facilities”
means the air and water pollution control facilities currently in operation at
the Valmont Steam Electric Generating Station of the Company located within
Boulder County, Colorado which are described in Part IV of Exhibit A
hereto.

 

(nn)         “Zuni Facilities”
means the air and water pollution control facilities currently in operation at
the Zuni Steam Electric Generating Station of the Company located

 

6

 

within
the City and County of Denver, Colorado which are described in Part V of Exhibit A
hereto.

 

Section 1.02           Rules of
Interpretation.

 

(a)           The words “herein” and “hereof”
and “hereunder” and words of similar import, without reference to any
particular section or subdivision, refer to this Agreement as a whole
rather than to any particular section or subdivision of this Agreement.

 

(b)           References in this
Agreement to any particular article, section or subdivision hereof are to
the designated article, section or subdivision of this Agreement as
originally executed.

 

(c)           All accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with generally accepted accounting principles; and all computations provided
for herein shall be made in accordance with generally accepted accounting
principles consistently applied and applied on the same basis as in prior
years.

 

(d)           The Table of Contents
and titles of articles and sections herein are for convenience of reference
only and are not a part of this Agreement and shall not define or limit the
provisions hereof.

 

(e)           Unless the context
hereof clearly requires otherwise, the singular shall include the plural and
vice versa and the masculine shall include the feminine and vice versa.

 

(f)            Articles, sections,
subsections and clauses mentioned by number only are those so numbered which
are contained in this Agreement.

 

(g)           Any opinion of counsel
called for herein shall be a written opinion of such counsel.

 

(h)           The County and the
Company acknowledge that each of them and their respective counsel have participated
in the drafting this Agreement and the Indenture, and, accordingly, agree that
any rule of construction to the effect that ambiguities are to be resolved
against the drafting party shall not apply in the interpretation of this
Agreement or any supplement or exhibit hereto or the Indenture or any
supplement or exhibit thereto.

 

(i)            If not expressly
stated, references to the excludability or exclusion of interest on the 2005 Series A
Bonds from gross income for federal income tax purposes shall be deemed to mean
the excludability or exclusion of interest on the 2005 Series A Bonds
(other than 2005 Series A Bonds held by a “substantial user” of the
Facilities or a “related person” within the meaning of section 147(a) of
the Code) from gross income for federal income tax purposes pursuant to section 103(a) of
the Code.

 

7

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

Section 2.01           Representations
and Warranties of the County.  The
County makes the following representations and warranties as the basis for the
undertakings on the part of the Company contained herein:

 

(a)           The County is a public
body corporate and politic duly organized and existing as a county in the State
of Colorado under the Constitution and laws of such State;

 

(b)           The County has the
power to enter into this Agreement and to perform and observe the agreements
and covenants on its part contained herein, and by proper corporate action has
duly authorized the execution and delivery hereof; and

 

(c)           The execution and
delivery of this Agreement by the County do not, and consummation of the
transactions contemplated hereby and fulfillment of the terms hereof by the
County will not, result in a breach of any of the terms or provisions of, or
constitute a default under, any indenture, mortgage, deed of trust or other
agreement or instrument to which the County is now a party or by which it is
now bound, or any order, rule or regulation applicable to the County of
any court or of any regulatory body or administrative agency or other
governmental body having jurisdiction over the County or over any of its
properties, or the Constitution or laws of the State of Colorado.

 

Section 2.02           Representations
and Warranties of the Company.  The
Company makes the following representations and warranties as the basis for the
undertakings on the part of the County contained herein:

 

(a)           The Company is a
corporation duly organized and existing in good standing under the laws of the
State of Colorado;

 

(b)           The Company has the
power to enter into this Agreement, to issue the Note,  and to perform and observe the agreements and
covenants on its part contained in this Agreement and the Note, and by proper
corporate action has duly authorized the execution and delivery hereof;

 

(c)           The Public Utilities
Commission of the State of Colorado has approved all matters relating to the
Company’s participation in the transactions contemplated by this Agreement
which require said approval, and no other consent, approval, authorization or
other order of any regulatory body is legally required for the Company’s
participation therein, except such as may have been obtained or may be required
under the securities laws of any jurisdiction;

 

(d)           The execution and
delivery of this Agreement and the issuance of the Note by the Company do not,
and consummation of the transactions contemplated hereby and fulfillment of the
terms hereof by the Company will not, result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture, mortgage, deed of
trust or other agreement or instrument to which the Company is a party or by
which it is now bound, or the Amended and Restated Articles of Incorporation or
Bylaws of the Company, or any order, rule or regulation applicable to the
Company of any court or of any regulatory body or administrative

 

8

 

agency
or other governmental body having jurisdiction over the Company or over any of
its properties, or any statute of any jurisdiction applicable to the Company;

 

(e)           The 1974 Facilities at
the Cherokee Plant are, or, to the extent the 1974 Facilities at the Cherokee
Plant are Discontinued Facilities, are or were, located within the boundaries
of the County; the 1974 Facilities at the Cameo Plant are, or, to the extent
the 1974 Facilities at the Cameo Plant are Discontinued Facilities, are or
were, located within Mesa County, Colorado; the 1974 Facilities at the Arapahoe
Plant are, or, to the extent the 1974 Facilities at the Arapahoe Plant are
Discontinued Facilities, are or were, located within the boundaries of the City
and County of Denver, Colorado; the 1974 Facilities at the Zuni Plant are, or,
to the extent the 1974 Facilities at the Zuni Plant are Discontinued
Facilities, are or were, located within the City and County of Denver,
Colorado; and the 1974 Facilities at the Valmont Plant are, or, to the extent
the 1974 Facilities at the Valmont Plant are Discontinued Facilities, are or
were located within the boundaries of Boulder County, Colorado;

 

(f)            The 1979 Facilities
are, or, to the extent the 1979 Facilities are Discontinued Facilities, are or
were, located within the boundaries of Morgan County, Colorado;

 

(g)           The 1983 Facilities at
the Cherokee Plant are, or, to the extent the 1983 Facilities at the Cherokee
Plant are Discontinued Facilities, are or were, located within the boundaries
of the County; the 1983 Facilities at the Arapahoe Plant are, or, to the extent
the 1983 Facilities at the Arapahoe Plant are Discontinued Facilities, are or
were, located within the boundaries of the City and County of Denver, Colorado;
and the 1983 Facilities at the Valmont Plant are, or, to the extent the 1983
Facilities at the Valmont Plant are Discontinued Facilities, are or were,  located within the boundaries of Boulder
County, Colorado;

 

(h)           The description of the
Facilities and the Discontinued Facilities, and the estimated remaining useful
lives of the Facilities, set forth in the Engineer’s Certificate are, to the
knowledge of the Company, fair and accurate;

 

(i)            The costs of the
acquisition, construction and/or installation of the Facilities, including the
Discontinued Facilities, were financed with proceeds of the 1974 Adams County
Bonds, the 1979 Morgan County Bonds, or the 1983 Adams County Bonds, and the
Facilities herein described do not include facilities other than those
facilities financed with proceeds of the 1974 Adams County Bonds, the 1979
Morgan County Bonds, or the 1983 Adams County Bonds;

 

(j)            Substantially all of
the proceeds of the 1974 Adams County Bonds, the 1979 Morgan County Bonds, and
the 1983 Adams County Bonds were used to provide air or water pollution control
facilities within the meaning of Section 103(b)(4)(F) of the 1954
Code or, in the case of the 1979 Facilities, solid waste disposal facilities
within the meaning of Section 103(b)(4)(E) of the 1954 Code;

 

(k)           The principal of or
interest on the 2005 Series A Bonds is not “federally guaranteed” (as
defined in Section 149(b) of the Code) in whole or in part by the United
States of America or any agency or instrumentality thereof;

 

9

 

(l)            None of the proceeds
of the 1974 Adams County Bonds, the 1979 Morgan County Bonds, or the 1983 Adams
County Bonds were used to provide any airplane, skybox or other private luxury
box, health club facility, any facility primarily used for gambling or any
store the principal business of which is the sale of alcoholic beverages for
consumption off premises;

 

(m)          No proceeds of the 1974
Adams County Bonds, the 1979 Morgan County Bonds, or the 1983 Adams County
Bonds were used (directly or indirectly) for the acquisition of land (or an
interest therein);

 

(n)           No portion of the
proceeds of the 1974 Adams County Bonds, the 1979 Morgan County Bonds, or the
1983 Adams County Bonds was used for the acquisition of any property (or an
interest therein) the first use of which was not pursuant to such acquisition;

 

(o)           The proceeds of the
1993 Adams County Bonds were applied solely to the refunding of the 1974 Adams
County Bonds and the 1983 Adams County Bonds;

 

(p)           The proceeds of the
1993 Morgan County Bonds were applied solely to the refunding of the 1979
Morgan County Bonds; and

 

(q)           The weighted average
maturity of the 2005 Series A Bonds is 12.0356 years, and 20% of the
average reasonably expected economic life of the Facilities is 12.9661 years;
therefore, the weighted average maturity of the 2005 Series A Bonds does
not exceed one hundred twenty percent (120%) of the average reasonably expected
economic life of the Facilities, for purposes of Section 147(b) of
the Code.

 

(r)            The representations
and warranties made by the Company in the Tax Certificate are true and
accurate, subject to any qualifications set forth therein.

 

ARTICLE 3

THE FACILITIES

 

Section 3.01           Facilities
Property of Company.  The Facilities
are and shall be the property of the Company, and the County shall have no
right, title or interest therein.  The
Facilities may be subject to such liens and encumbrances as determined by the Company,
at its sole discretion, by operation of law, or otherwise, and may be sold,
assigned, or disposed of by the Company, at its discretion, in accordance with Section 6.08
hereof.

 

Section 3.02           No
Warranty of Condition or Suitability by the County.  The County makes no warranty, either express
or implied, as to the condition of the Facilities or for the suitability of the
Facilities for the Company’s purposes or needs.

 

10

 

ARTICLE 4

ISSUANCE OF THE 2005 SERIES A BONDS

 

Section 4.01           Issuance
of the 2005 Series A Bonds.  In
order to assist the Company in the refinancing of the costs of the acquisition,
construction and installation of the Facilities, the County shall issue the
2005 Series A Bonds under and in accordance with the Indenture.  The Company hereby approves the issuance of
the 2005 Series A Bonds and all terms and conditions thereof.

 

Section 4.02           Redemption
of the 1993 Adams County Bonds and the 1993 Morgan County Bonds.  Prior to or upon issuance of the 2005 Series A
Bonds, the County, at the direction of the Company, (i) shall direct the
1993 Adams County Bonds Trustee to effect the redemption of the 1993 Adams
County Bonds in accordance with the 1993 Adams County Bonds Indenture, and (ii) shall
direct the 1993 Morgan County Bonds Trustee to effect the redemption of the
1993 Morgan County Bonds in accordance with the 1993 Morgan County Bonds
Indenture.  Such redemption shall be
effected prior to the 90th day following the original issuance of
the 2005 Series A Bonds.  The
Company shall cause notice of such redemption of the 1993 Adams County Bonds to
be given to the owners thereof pursuant to the 1993 Adams County Bonds
Indenture and notice of such redemption of the 1993 Morgan County Bonds to be given
to the owners thereof pursuant to the 1993 Morgan County Bonds Indenture.

 

Section 4.03           Disposition
of 2005 Series A Bond Proceeds.  The County shall direct the Trustee to apply
the proceeds from the sale of the 2005 Series A Bonds in accordance with Section 4.01
of the Indenture.

 

Section 4.04           Agreement
to Provide Balance of Moneys to Redeem.  On or prior to the date fixed for the
redemption of the 1993 Adams County Bonds and the 1993 Morgan County Bonds in
accordance with Section 4.02 hereof, the Company shall deliver (i) to
the 1993 Adams County Bonds Trustee, an amount that, together with the proceeds
of the 2005 Series A Bonds deposited with the 1993 Adams County Bonds
Trustee pursuant to Section 4.03 hereof, shall be sufficient to effect the
redemption of the 1993 Adams County Bonds in accordance with Section 4.02
hereof, and (ii) to the 1993 Morgan County Bonds Trustee, an amount that,
together with the proceeds of the 2005 Series A Bonds deposited with the
1993 Morgan County Bonds Trustee in accordance with Section 4.03 hereof,
shall be sufficient to effect the redemption of the 1993 Morgan County Bonds in
accordance with Section 4.02 hereof.

 

ARTICLE 5

PAYMENTS TO BE MADE BY THE COMPANY

 

Section 5.01           Debt
Service Payments.  (a) In
consideration of the application of the proceeds of the 2005 Series A
Bonds in accordance with Article 4 hereof, the Company shall pay to the
County moneys at times and in amounts sufficient to provide for the payment
when due of the principal of, and premium, if any, and interest on, the 2005 Series A
Bonds.  To evidence its obligation to
make such payments, the Company, concurrently with the issuance and delivery by
the County of the 2005 Series A Bonds, shall issue and deliver to the
County the Note.  Upon its

 

11

 

receipt
of the Note, the County shall endorse the Note to the Trustee.  After such assignment by the County to the
Trustee, the Note shall not be transferable by the Trustee, except to a
successor Trustee in accordance with the terms of the Indenture, and shall be
held by the Trustee as security for the payment of the principal of, and
redemption premium, if any, and interest on, the 2005 Series A Bonds.

 

(b)           If the Company does not
intend, or will be unable, to make any payment on the Note when due, the
Company shall provide prompt written notice of such intent or inability to the
Trustee and the Bond Insurer or its designee at least two (2) Business
Days prior to the date such payment is due.

 

(c)           Any amounts on deposit
in the Interest Account of the Bond Fund established under the Indenture at the
close of business on the Business Day immediately preceding each Interest
Payment Date or any other date on which interest on the 2005 Series A
Bonds shall become due shall be credited against payments of interest coming
due on such payment date that otherwise would be payable under the terms of Section 5.01(a) hereof
and the Note.  Any amounts on deposit in
the Principal Account of the Bond Fund established under the Indenture at the
close of business on the Business Day immediately preceding the maturity date
for the 2005 Series A Bonds or any other date on which principal of the
2005 Series A Bonds shall come due shall be credited against payments of
principal coming due on such payment date that otherwise would be payable under
the terms of Section 5.01(a) hereof and the Note.

 

(d)           Payment of the
principal of, and premium, if any, and interest on, the 2005 Series A
Bonds will be payable solely from the Trust Estate pledged therefor pursuant to
the Indenture.

 

(e)           Any payment by the
Company of the principal or prepayment price of, or interest on, the Note shall
be held by the Trustee and, except as provided in Section 10.04 of the
Indenture, applied solely to the corresponding payment of principal or
redemption price of, or interest on, the 2005 Series A Bonds when due.

 

Section 5.02           Obligation
Absolute.  The Company agrees that
its obligation to make the payments due hereunder and on the Note shall be
absolute, irrevocable and unconditional and shall not be subject to any defense
other than payment or to any right of set-off, counterclaim or recoupment
arising out of any breach by the County or the Trustee or any other party under
this Agreement, the Indenture or otherwise, or out of any obligation or
liability at any time owing to the Company by the County, the Trustee or any
other party, and further that the payments due hereunder and on the Note shall
continue to be payable at the times and in the amounts herein and therein
specified, whether or not the Facilities or the Plants shall have been
destroyed by fire or other casualty, or title thereto, or the use thereof,
shall have been taken by the exercise of the power of eminent domain, and that
there shall be no abatement of or diminution in any such payments by reason
thereof, whether or not the Facilities or the Plants shall be used or useful
and whether or not any applicable laws, regulations or standards shall prevent
or prohibit the use of the Facilities or the Plants, or for any other reason.

 

Section 5.03           Payment
of Expenses.  The Company shall pay,
or cause to be paid, all of the Administration Expenses of the County, provided
that the payment of the ordinary and

 

12

 

extraordinary
compensation and the reimbursement of expenses and advances of the Trustee are
to be made directly by the Company to the Trustee; provided, further, that the
Company may contest in good faith the necessity for and the reasonableness of
any services, expenses and advances by the Trustee payable by the Company
hereunder, and such contest shall not give rise to an Event of Default under
this Agreement or the Indenture.  The
Company shall pay, promptly upon receipt of bills or invoices therefor, from
funds other than the proceeds of the 2005 Series A Bonds, all costs and
expenses incident to the issuance of the 2005 Series A Bonds other than
those costs and expenses, if any, to be paid by the Underwriters pursuant to
the Bond Purchase Agreement.

 

Section 5.04           Indemnification.  (a) The Company releases the County and
the Trustee from, agrees that the County and the Trustee shall not be liable
for, and agrees to indemnify and hold the County and its elected officials,
employees, and agents, past, present, and future, and the Trustee, and its
members, directors, officers, employees, and agents (each an “Indemnified
Party” and collectively the “Indemnified Parties”), free and
harmless from, any losses, claims, damages, liabilities or expenses of every kind,
character, and nature arising out of, resulting from, or in any way connected
with (i) any loss or damage to property or any injury to or death of any
person that may be occasioned by any cause whatsoever pertaining to the
Facilities or the Plants, except in any case as a result of the negligence or
bad faith of the County or the Trustee, and (ii) the execution or
performance of this Agreement, the issuance or sale of the 2005 Series A
Bonds, the acceptance or assignment of the Note in accordance with the terms
hereof, the refunding of the 1993 Adams County Bonds and the 1993 Morgan County
Bonds, actions taken under the Indenture or any other cause whatsoever
pertaining to the Facilities, the Plants or the Discontinued Facilities, except
in any case as a result of negligence or bad faith of the County or the
Trustee.

 

(b)           Promptly after
commencement of any action against an Indemnified Party, such Indemnified Party
will notify the Company in writing of such action, and the Company may assume
the defense thereof, including the employment of counsel and the payment of all
expenses (provided that the omission to so notify the Company will not relieve
the Company of any liability to the Indemnified Party hereunder unless the
Company was prejudiced in any material respect as a result of such omission).
If notice of any such action is given, the Company shall be entitled to
participate at its own expense in the defense, or, if it elects, to assume the
defense of such action.  If the Company
assumes the defense of any such action, the defense will be conducted by
counsel chosen by the Company in its discretion and reasonably satisfactory to
the Indemnified Party or Indemnified Parties who shall be the defendant or
defendants in such action, and any such Indemnified Party shall cooperate fully
in such defense and shall bear the fees and expenses of additional counsel
retained by it.  If the Company elects
not to assume the defense of such action, the Company will reimburse the
Indemnified Party or Indemnified Parties, as the case may be, for all
reasonable fees and expenses of any counsel retained by such Indemnified Party
or Indemnified Parties.  If any
Indemnified Party reasonably objects to any such assumption on the ground that
there may be legal defenses available to the Company that are different from or
in addition to those defenses available to such Indemnified Party, or the
Indemnified Party has been advised by counsel that representation of the
Indemnified Party and the Company by the same counsel would not be appropriate
under applicable standards of professional ethics, the Indemnified Party shall
have the right to select separate counsel, satisfactory to the Company, to
participate in the defense of such action on behalf of such

 

13

 

Indemnified
Party (it being understood that the Company shall not be liable for the
expenses of more than one separate counsel, including local counsel, for all
Indemnified Parties in connection with any one action or separate but similar
or related actions in the same jurisdiction arising out of the same allegations
or circumstances).  The Company shall not
be liable for any settlement of any action effected without its consent, but if
settled with the consent of the Company or if a final judgment for the
plaintiff in any such action is given, the Company will indemnify and hold
harmless any Indemnified Party from and against any loss or liability by reason
of such settlement or judgment to the extent indemnification is required hereunder.

 

(c)           To provide for just and
equitable contribution if the indemnification contemplated to be provided by
the Company to any Indemnified Party is determined to be unavailable for any
reason (other than due to application of this Section), the Company shall
contribute to the losses or liabilities incurred by the Indemnified Party on
the basis of the relative fault of the Company, on the one hand, and the
Indemnified Party, on the other hand, to the maximum amount permitted by
applicable law.

 

(d)           The Company shall not
be liable for any settlement of any such action or proceeding effected without
its prior written consent to the extent such settlement would be prejudicial to
the Company; provided, however, if any such action or proceeding is settled with
the prior written consent of the Company, or if there is a final judgment for
the plaintiff in any such action or proceeding with respect to which the
Company shall have received notice in accordance with subsection (b) above,
the Company agrees to indemnify and hold harmless the Indemnified Party from
and against any loss or liability by reason of such settlement or judgment.

 

(e)           The obligations of the
Company under this Section 5.04 are independent of any other contractual
obligation of the Company to provide indemnity to the parties named herein, and
the obligation of the Company to provide indemnity hereunder may not be
interpreted, construed or limited in light of any other separate
indemnification obligation of the Company. 
Any Indemnified Party is entitled simultaneously to seek indemnity under
this Section 5.04 and any other provision under which it is entitled to
indemnity from the Company.

 

(f)            The obligations of the
Company under this Section shall survive the termination or expiration of
this Agreement and the payment or defeasance of the 2005 Series A Bonds
and shall continue in full force and effect until the later of (i) the
date, reasonably determined pursuant to an agreement or acknowledgment by the
parties hereto, after which there is no longer a possibility that an
Indemnified Party may incur any losses, claims, damages, liabilities or
expenses for which the Company shall be liable for indemnification under this Section 5.04,
and (ii) payment in full by or on behalf of the Company of any losses,
claims, damages, liabilities or expenses for which the Company is required to
pay indemnification hereunder.

 

Section 5.05           Payments
to the Bond Insurer.  The Company
shall pay, or cause to be paid, when due all amounts payable by the Company to the
Bond Insurer under the Insurance Agreement, in accordance with the terms
thereof; provided, however, that, with respect to any payment default under the
Insurance Agreement that gives rise to default under this Section 5.05,
any cure, or waiver or rescission of such payment default and its consequences
under the

 

14

 

Insurance
Agreement shall automatically, without further action, be and be deemed as a
cure, waiver, or rescission of such default under this Section 5.05 and
the consequences thereof under this Agreement, unless (i) as a consequence
of such default, an Event of Default under this Agreement and an Event of
Default under the Indenture shall have occurred and the principal of the 2005 Series A
Bonds shall have been declared immediately due and payable pursuant to Section 9.02
of the Indenture, or (ii) the 2005 Series A Bonds are no longer
Outstanding.  For purposes of Section 8.01(a) of
the Indenture, the Company shall be deemed to have complied with this Section 5.05
if and to the extent the Bond Insurer shall have been reimbursed through
exercise of its subrogation rights under the Indenture or pursuant to the
Insurance Agreement or otherwise for any amounts paid under the Financial
Guaranty Insurance Policy.

 

Section 5.06           Amounts
Remaining in Bond Fund. 
To the extent not required to pay the principal of, or premium, if any,
or interest on, any 2005 Series A Bonds, the fees, charges and expenses of
the Trustee due hereunder or under the Indenture, all amounts owed by the
Company to the Bond Insurer under the Insurance Agreement, and the payment of
all other amounts due and payable under this Agreement or the Indenture, any
amounts remaining in the Bond Fund established under the Indenture upon expiration
or sooner termination of this Agreement shall belong to the Company; and such
balance shall be paid to the Company promptly in accordance with Section 8.01
of the Indenture.

 

ARTICLE 6

SPECIAL COVENANTS

 

Section 6.01           Maintenance
of Corporate Existence; Merger, Consolidation, and Disposition of Assets.  The Company shall maintain its corporate
existence, and may not dissolve or otherwise dispose of all or substantially
all of its assets, or consolidate or merge, unless either (A) after such
consolidation or merger, the Company shall be the surviving corporation or
business entity, or (B) if, after such consolidation, merger or sale, the
Company shall not be the surviving corporation or business entity, such
surviving corporation or business entity is a Regulated Utility Corporation
and, prior to or simultaneously with such consolidation, merger or sale, such
surviving corporation or business entity executes and delivers a written
agreement, in form and substance reasonably satisfactory to the Trustee and the
Bond Insurer, that the surviving corporation or business entity assumes all of
the obligations of the Company under this Agreement, the Note, and the
Insurance Agreement.

 

Section 6.02           Further
Assurances.  If the
County or the Company reasonably determines that the execution and delivery of
a supplement hereto or further instruments are necessary to ensure that the
intentions of the parties hereto are met or the facilitation of the performance
of this Agreement by either party, the County and the Company shall cooperate
with each other to take such reasonable steps necessary to execute and deliver
such documents and shall execute and deliver, or cause the execution and
delivery of such documents, promptly upon request therefor.

 

Section 6.03           Tax
Covenant with Respect to 2005 Series A Bonds.  (a) Each of the County and the Company
covenants that (i) it will not take any action or omit to take any action

 

15

 

if
such action or omission would adversely affect the excludability of the
interest on the 2005 Series A Bonds from gross income for federal income
tax purposes under Section 103 of the Code, except for interest during any
period during which any 2005 Series A Bond is held by a “substantial user”
of the Facilities or a “related person” as such terms are used in Section 147(a) of
the Code; and (ii) it will take, or require to be taken, such actions as
may be reasonably within its ability or control as may from time to time be
required under applicable law or regulation to continue the excludability of
interest on the 2005 Series A Bonds from gross income for federal income
tax purposes as aforesaid.  In
furtherance of the covenants set forth in clauses (i) and (ii) above,
each of the County and the Company agrees to comply with all of its
representations, warranties, and covenants set forth in the Tax Certificate,
and the representations, warranties, and covenants set forth in such Tax
Certificate are hereby incorporated herein by reference as if they had been set
forth herein in their entirety.

 

(b)           Each of the County and
the Company covenants that it will not take any action or fail to take any
action with respect to the 2005 Series A Bonds within its ability or
control if such action or failure to take action would cause the 2005 Series A
Bonds to become “arbitrage bonds” within the meaning of Section 148 of the
Code, and any regulations promulgated or proposed to be promulgated thereunder
or under Section 103(c) of the 1954 Code.

 

(c)           For so long as necessary
in order to maintain the excludability of the interest on the 2005 Series A
Bonds from gross income for federal income tax purposes as set forth above, the
representations, warranties, and covenants contained or incorporated by
reference in this Section 6.03 shall remain in full force and effect.

 

Section 6.04           Maintenance
of the Facilities.  To the extent the
Facilities are not Discontinued Facilities, the Company shall, at its own
expense, at all times maintain, preserve and keep the Facilities, and each
element and unit thereof, in thorough repair, working order and condition, and
from time to time make all needful and proper repairs and renewals thereto;
provided, however, that the Company may discontinue the operation of the
Facilities, or any element or unit thereof, if, in the judgment of the Company,
it is no longer advisable to operate the same, or if the Company intends to
sell or dispose of the same and within a reasonable time shall endeavor to
effectuate such sale or disposition.  If
the Company elects to discontinue the operation of, or sell or dispose of, any
of the Facilities set forth in Exhibit A attached hereto, the Company
shall provide notice of such discontinuance, sale or disposition to the
Trustee, and such Facilities shall be considered Discontinued Facilities
hereunder.

 

Section 6.05           Insurance
of the Facilities.  The Company shall
keep all the insurable Facilities (other than Discontinued Facilities) insured
against fire and other risks to the extent usually insured against by companies
owning and operating similar property, by reputable insurance companies or, at
the Company’s election, with respect to all or any element or unit of such
Facilities, by means of an adequate insurance fund set aside and maintained by
it or in conjunction with other companies through an insurance fund, trust or
other agreement.

 

Section 6.06           Application
of Insurance Proceeds and Condemnation Awards.  (a) If as a result of any damage to, or
destruction of, or loss suffered by all or any part of the Facilities the

 

16

 

Company
receives proceeds of any claim for insurance or otherwise relating thereto,
such proceeds shall be property of the Company, and the County shall have no
interest therein.

 

(b)           If (i) as a result
of any condemnation or other taking by governmental authorities of all or any
part of the Facilities the Company receives a condemnation award or other
proceeds to compensate the Company for such taking, or (ii) the Company
receives moneys upon sale of all or any part of the Facilities in lieu of
condemnation, such condemnation awards, other proceeds, or sale proceeds shall
be property of the Company, and the County shall have no interest therein.

 

Section 6.07           Use
of Facilities.  Subject
to the Company’s right to discontinue use of, sell or dispose of any or all of
the Facilities, the Company shall cause the Facilities to be used for the
purpose of (i) air or water pollution control as described in Section 103(b)(4)(F) of
the 1954 Code, or (ii) the disposal of sewage or solid waste within the
meaning of Section 103(b)(4)(E) of the 1954 Code.  In addition, for so long as the Company
operates the Facilities, the Company shall cause the Facilities to be used as a
utility plant, pollution control facilities or solid waste disposal facilities,
as the case may be, within the meaning of the Act.

 

Section 6.08           Discontinuance,
Sale or Other Disposition of the Facilities.  The Company, at its discretion, may
discontinue use of, sell or dispose of any or all of the Facilities, subject to
the restrictions and limitations under Sections 5.02, 6.01, 6.03, and 7.01
hereof.

 

Section 6.09           Financing
Statements.  The
Company is hereby authorized to file, or cause to be filed, such financing
statements, amendments to financing statements, and continuation statements
referred to in Section 7.07 of the Indenture, if any, without any
execution, further authorization, or any other action by the County; provided
that the Company shall coordinate with the Trustee as to the filing of any such
financing statements, amendments to financing statements, and continuation
statements. Promptly after any such filing by or caused by the Company, the
Company shall deliver, or cause to be delivered, to the Trustee evidence,
reasonably satisfactory to the Trustee, that such filing has been duly
accomplished and setting forth the particulars thereof.

 

Section 6.10           Information
Reporting Requirements.  The County
covenants that it shall, with respect to the 2005 Series A Bonds, comply
with the information reporting requirements of Section 149(e) of the
Code upon receipt from the Company of the information required to be reported
under that Section.  The Company
covenants that it shall furnish to the County whatever information is necessary
for the County to complete Form 8038 of the U.S. Department of Treasury,
Internal Revenue Service and that such information shall be complete and
accurate as of the date so furnished.

 

ARTICLE 7

ASSIGNMENT

 

Section 7.01           Assignment
by the Company.  In addition to an
assumption of the Company’s obligations hereunder in connection with a merger,
consolidation, or sale of all or substantially all of the assets of the Company
in accordance with Section 6.01 hereof, the

 

17

 

Company’s
interest in this Agreement may be assigned, in whole or in part, without
obtaining the consent of either the County or the Trustee, but subject to the
prior written consent of the Bond Insurer, if the following conditions are
satisfied to the satisfaction of the Trustee: (i) the assignee shall
assume all of the obligations of the Company under this Agreement, the Note,
and the Insurance Agreement; (ii) the Company, at or prior to such
assignment, shall furnish or cause to be furnished to the County and the
Trustee written notice of such assignment and assumption; and (iii) the
Company shall, within fifteen (15) days after the delivery thereof, furnish to
the County and the Trustee a true and complete copy of the agreements or other
documents effectuating any such assignment and assumption.  No such assignment and assumption made
pursuant to this Section 7.01 shall relieve the Company from primary
liability for any of its obligations hereunder or on the Note, and the Company
shall continue to remain primarily liable for payment of the amounts specified
herein and on the Note and for the performance and observance of the other
covenants on its part contained herein, other than those covenants relating to
the operation, maintenance, or insurance of the Facilities, which covenants (to
the extent of the interest assigned, leased or sold and to the extent assumed
by the assignee, lessee or purchaser) shall be deemed to be satisfied and
discharged.

 

Section 7.02           Assignment
by the County.  Solely pursuant to
the Indenture, the County shall assign its interest in, and pledge any moneys
receivable by the County under, this Agreement and the Note, except for it
rights under Sections 5.03, 5.04 and 8.04 hereof, as security for the payment
of the principal of, and premium, if any, and interest on, the 2005 Series A
Bonds.  The Company consents to such
assignment and pledge.

 

ARTICLE 8

EVENTS OF DEFAULT AND REMEDIES

 

Section 8.01           Events
of Default.  Each of the following
events shall constitute and is referred to in this Agreement as an “Event of
Default”:

 

(i)            a
failure by the Company to pay when due the principal of, or premium, if any, or
interest on, the Note, and such failure results in a default in the full and
timely payment of the principal of, or premium, if any, or interest on, the
2005 Series A Bonds when due;

 

(ii)           a
failure by the Company to observe and perform any covenant, condition or
agreement on its part to be observed or performed under this Agreement or the
Note, other than its agreement to pay when due the principal of, or premium, if
any, or interest on, the Note, and, with respect to any such failure other than
a failure to observe or perform the covenants, conditions and agreements
contained in Section 6.03 hereof, continuance of such failure for a period
of thirty (30) days after written notice, specifying such failure and
requesting that it be remedied, shall have been given to the Company by the
Trustee, unless the County and the Trustee shall agree in writing, subject to
the prior written consent of the Bond Insurer, to an extension of such period
prior to its expiration; provided, however, that the County and the Trustee
shall be deemed to have agreed to an extension of such period if corrective
action is initiated by the Company within such

 

18

 

period and is being diligently pursued, but such extension shall be
subject to the prior written consent of the Bond Insurer;

 

(iii)          if
and for so long as “Securities” within the meaning of the Company Mortgage have
been issued thereunder by the Company to, and are held by, the Bond Insurer in
accordance with the Insurance Agreement, acceleration of the payment of any “Securities”
upon the occurrence of an “Event of Default” under Section 1001 of the Company
Mortgage; provided, however, that any rescission, waiver, or cancellation of
such “Event of Default” under the terms of the Company Mortgage shall be deemed
to be a rescission, waiver, or cancellation of an Event of Default under this
clause (iii); or

 

(iv)          if
no Bond Insurer Default has occurred and is continuing, receipt of written
notice from the Bond Insurer that an “event of default” under the Insurance
Agreement has occurred and is continuing; provided, however, that any
rescission, waiver, or cancellation of such “event of default” under the
Insurance Agreement shall be deemed to be a rescission, waiver, or cancellation
of an Event of Default under this clause (iv).

 

Section 8.02           Remedies.

 

(a)           Upon the occurrence and
continuance of any Event of Default described in Section 8.01 hereof, the
Trustee, as the holder of the Note, subject to the provisions of the Indenture:

 

(i)            may
declare, by written notice to the Company and the County, subject to the prior
written consent of the Bond Insurer, and shall declare, by written notice to
the Company and the County, at the written direction of the Bond Insurer or
upon the occurrence of an Event of Default specified in Section 8.01(iii) hereof
or acceleration of the maturity of the 2005 Series A Bonds pursuant to Section 9.02
of the Indenture, an amount equal to the principal of and accrued interest on
the Note to be immediately due and payable, whereupon the same shall become
immediately due and payable; and

 

(ii)           may
take whatever action at law or in equity may appear necessary or desirable to
collect the amounts payable by the Company under this Agreement and under the
Note then due and thereafter to become due, or to enforce performance and
observance of any obligation, agreement, or covenant by the Company under this
Agreement or the Note, whether by an action for specific performance or in aid
of the execution of any other power granted herein or in the Indenture.

 

(b)           Any amounts collected
from the Company pursuant to this Section 8.02 shall be applied in
accordance with the Indenture.

 

Section 8.03           No
Remedy Exclusive.  No
remedy conferred upon or reserved to the Trustee hereby is intended to be
exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute.  No delay or omission to

 

19

 

exercise
any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right or power
may be exercised from time to time and as often as may be deemed
expedient.  In order to entitle the Trustee
to exercise any remedy reserved to it in this Article 8, it shall not be
necessary to give any notice, other than such notice as may be herein expressly
required.

 

Section 8.04           Reimbursement
of Attorneys’ Fees.  If the Company
shall default under any of the provisions hereof and the County and/or the
Trustee shall employ attorneys or incur other reasonable expenses for the
collection of payments due hereunder or on the Note or for the enforcement of
performance or observance of any obligation or agreement on the part of the
Company contained herein, the Company will on written demand therefor reimburse
the County and/or the Trustee, as the case may be, for the reasonable fees of
such attorneys and such other reasonable expenses so incurred.

 

Section 8.05           Waiver
of Breach.  In the
event any obligation created hereby shall be breached by either of the parties
and such breach shall thereafter be waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to
waive any other breach hereunder.  In
view of the assignment of certain of the County’s rights and interests
hereunder to the Trustee, the County shall have no power to waive any default
hereunder by the Company in respect of such rights and interests without the
consent of the Trustee, and the Trustee may exercise any of the rights of the
County hereunder.

 

ARTICLE 9

REDEMPTION OR DEFEASANCE OF THE 2005 SERIES A BONDS

 

Section 9.01           Right
to Effect Redemption or Defeasance. 
The Company shall have the right, at its discretion, to cause a redemption
of all or a portion of the 2005 Series A Bonds pursuant to Section 2.02(e)(i),
(ii) and (iv) of the Indenture, at the respective redemption prices
set forth in such provisions, and otherwise to cause a defeasance of all or a
portion of the 2005 Series A Bonds Outstanding pursuant to Section 8.01
of the Indenture.  If the Company elects
to exercise such right to cause a redemption or a defeasance, (i) the
County shall take the actions required by the Indenture (other than the payment
of moneys or the deposit of Government Obligations) to discharge the lien
thereof through the redemption, or provision for payment or redemption, of all
2005 Series A Bonds then Outstanding, or to effect the redemption, or
provision for payment or redemption, of less than all of the 2005 Series A
Bonds then Outstanding, and (ii) the Company shall take such actions
necessary to prepay the Note in connection therewith.

 

Section 9.02           Exercise
of Right to Redeem or Defease.  To
exercise its right to cause a redemption or defeasance of all or a portion of
the 2005 Series A Bonds, the Company shall give written notice to the
County and the Trustee (i) stating that the Company has elected to
exercise such right, (ii) designating the aggregate principal amount of
the 2005 Series A Bonds to be redeemed or defeased, (iii) designating
the aggregate principal amount of the 2005 Series A Bonds of each
maturity, if applicable, to be paid, redeemed, or defeased, (iv) if all or
a portion of the 2005 Series A Bonds are to be redeemed or otherwise
defeased, specifying the date of

 

20

 

redemption
or the date on which a defeasance of such 2005 Series A Bonds shall occur
under Section 8.01 of the Indenture, which shall not be less than
forty-five (45) days from the date such notice is given, and (v) if all or
a portion of the 2005 Series A Bonds are to be redeemed, designating
whether such 2005 Series A Bonds are to be redeemed pursuant to Section 2.02(e)(i),
(ii), or (iv) of the Indenture.  In
addition, in connection with any redemption or defeasance, the Company shall
provide, or cause to be provided, such certificates, opinions, and other
documents required by Section 8.01 of the Indenture, and, if applicable,
shall cause drafts of any certificate or report of independent certified public
accountants required by clause (iv) of Section 8.01(b) of the
Indenture and any opinion of Bond Counsel required by clause (v) of Section 8.01(b) of
the Indenture to be furnished to the Trustee and the Bond Insurer for review no
later than ten (10) Business Days prior to the date on which the
applicable defeasance of 2005 Series A Bonds to which such documents
relate is proposed to occur.  Unless
otherwise stated therein, any notice by the Company as to the election to cause
a redemption or defeasance of all or a portion of the 2005 Series A Bonds
shall be revocable by the Company at any time prior to the time before receipt
by the Trustee of the moneys tendered to effect such redemption or
defeasance.  If such election by the
Company is revocable and the Company does not revoke, rescind or cancel such
election, or if such election by the Company is irrevocable, the Company shall
deposit, or cause to be deposited, with the Trustee, in immediately available
funds, not later than the date selected by the Company for redemption or
defeasance of all or a portion of the 2005 Series A Bonds as aforesaid,
moneys, and/or Government Obligations the maturing principal of and interest on
which when due shall be in an amount that together with such moneys shall be,
in an amount sufficient to effect the redemption or defeasance of such 2005 Series A
Bonds.  The Company shall not exercise
its option to redeem the 2005 Series A Bonds pursuant to Section 2.02(e)(ii) of
the Indenture unless (i) (A) the Company or the successor corporation
or business entity referred to therein shall have deposited an amount
sufficient to pay the redemption price of the 2005 Series A Bonds to be
redeemed pursuant to said Section 2.02(e)(ii) and accrued interest
thereon into the Bond Fund established under the Indenture on or prior to the
124th day preceding the date fixed for redemption or (B) the
Bond Insurer shall have waived in writing the requirement that such deposit be
made; and (ii) the Company or such successor corporation or business
entity, from which funds are received to effect such redemption, shall have
caused the Trustee and the Bond Insurer to be furnished with letters from Moody’s
and S&P confirming that the senior secured debt securities of the Company
or such successor corporation or business entity, as applicable, are then rated
investment grade by Moody’s and S&P.

 

Section 9.03           Mandatory
Prepayment.  If and to the extent the
2005 Series A Bonds are subject to mandatory redemption pursuant to Section 2.02(e)(iii) of
the Indenture, the Company shall deposit, or cause to be deposited, with the
Trustee, in immediately available funds, by no later than 10:00 a.m.
prevailing time in the city in which the Principal Office of the Trustee is
located, on the date fixed for such redemption, moneys and/or Government
Obligations the maturing principal of which and interest on which shall be due
at times and in an amount that, together with such moneys, if any, shall be
sufficient to effect such redemption.

 

Section 9.04           Purchase
of 2005 Series A Bonds. 
The Company may at any time, and from time to time, furnish moneys to
the Trustee accompanied by a written notice directing the Trustee to apply such
moneys to the purchase in the open market of 2005 Series A Bonds in the
principal amount specified in such notice. 
Upon any such purchase, the purchased 2005 Series A Bonds shall be
canceled by the Trustee.

 

21

 

Section 9.05           Amendment
of Note Upon Partial Redemption or Purchase of 2005 Series A.  If the 2005 Series A Bonds are redeemed
in part or purchased in part as provided in this Article 9, the Company
shall execute and deliver, subject to the prior written consent of the Trustee
and the Bond Insurer, an amendment to the Note to modify the “Principal and
Interest Payment Schedule” attached thereto so that the payments of the
principal and interest set forth therein conform to the regularly scheduled
payments of principal of and interest on the 2005 Series A Bonds that
remain Outstanding after such redemption or purchase.

 

ARTICLE 10

RIGHTS OF THE BOND INSURER

 

Section 10.01         Rights
of the Bond Insurer. 
The County and the Company acknowledge and agree to the rights of the
Bond Insurer under the Indenture.  The
Bond Insurer is a third-party beneficiary of this Agreement and the Indenture.

 

Section 10.02         Reporting
Requirements.  While the Financial
Guaranty Insurance Policy is in effect, the Company shall furnish to the Bond
Insurer (to the attention of the Surveillance Department, unless otherwise
indicated):

 

(a)                                  as
soon as practicable after the filing thereof, a copy of any financial statement
of the Company and a copy of any audit and annual report of the Company; and

 

(b)                                 such
other additional information the Bond Insurer may reasonably request.

 

Section 10.03         Limitation
on Rights of the Bond Insurer. 
Notwithstanding any provision in the Indenture or this Agreement to the
contrary, the Bond Insurer shall have no rights under the Indenture or this
Agreement, other than rights of subrogation as provided in the Indenture if and
to the extent that the Bond Insurer has made payments with respect to the
principal of or interest on the 2005 Series A Bonds under the Financial
Guaranty Insurance Policy, if and for so long as a Bond Insurer Default has
occurred and is continuing; provided, however, that, notwithstanding any such
Bond Insurer Default, the Bond Insurer shall be given copies of notices and
other communications it is required to receive pursuant to Section 10.02
hereof or Section 11.02 hereof.

 

ARTICLE 11

MISCELLANEOUS

 

Section 11.01         Term
of Agreement.  This
Agreement shall remain in full force and effect from the date hereof until the
right, title and interest of the Trustee in and to the Trust Estate shall have
ceased, terminated and become void in accordance with Article VIII of the
Indenture or until all payments required under this Agreement shall have been
made.

 

22

 

Section 11.02         Notices.  Except as otherwise provided in this
Agreement, all notices, certificates, requests and other communications
hereunder shall be in writing and shall be sufficiently given and shall be
deemed given when mailed by first class mail, postage prepaid, addressed as
follows: if to the County, at 450 S. Fourth Avenue, Brighton, Colorado 80601,
Attention: County Attorney; if to the Company, c/o Xcel Energy Inc., 800
Nicollet Mall, Suite 2900, Minneapolis, Minnesota 55402, Attention:
Treasurer; and if to the Trustee, at such address as shall be designated by it
in the Indenture.  A copy of each notice,
certificate, request or other communication given hereunder to the County, the
Company or the Trustee shall be also given to the others and to the Bond
Insurer at 113 King Street, Armonk, New York 10504, Attention: Insured
Portfolio Management.  The County, the
Company, the Trustee or the Bond Insurer may by notice given hereunder
designate any further or different addresses to which subsequent notices,
certificates, requests or other communications shall be sent.

 

Any notice, consent, certificate, request or other communication given
by the County, the Company, or the Trustee hereunder shall be given
concurrently, and in the same manner, to the Bond Insurer.

 

Section 11.03         Governing
Law.  THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF COLORADO.

 

Section 11.04         Payments
and Performance Due on Holidays.  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 Agreement, shall not be a
Business Day, 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 Agreement, and no interest shall accrue for
the period after such nominal date.

 

Section 11.05         Parties
in Interest.  Nothing in this
Agreement expressed or implied is intended or shall be construed to confer
upon, or to give to, any person or entity, other than the County, the Company,
the Trustee, the Bond Insurer, and the Owners of the 2005 Series A Bonds,
any right, remedy or claim under or by reason of this Agreement or any
covenant, condition or stipulation hereof, and all covenants, conditions and
stipulations in this Agreement contained by and on behalf of the Company and
the County shall be for the sole and exclusive benefit of the County, the
Company, the Trustee, the Bond Insurer and the Owners of the 2005 Series A
Bonds.

 

Section 11.06         No
Pecuniary Liability of the County.  No provision, covenant or agreement contained
in this Agreement, or any obligations herein imposed upon the County, or the
breach thereof, shall constitute an indebtedness of the County or any political
subdivision thereof within the meaning of any Colorado constitutional provision
or statutory limitation or constitute or give rise to any pecuniary liability
or a Multiple Fiscal Year Direct or Indirect Debt or Other Financial Obligation
of the County under Article X of the Colorado Constitution, or a charge
against its general credit or taxing powers. 
In making the agreements, provisions and covenants set forth in this
Agreement, the County has not obligated itself except with respect to the application
of the revenues, income and all other property derived pursuant to this
Agreement, as hereinabove provided.  None
of the County’s officials, officers or employees shall

 

23

 

have
any monetary liability arising out of the obligations of the County hereunder
or in connection with any covenant, representation or warranty made by the
County herein.

 

Section 11.07         Amendments.  This Agreement may be amended only by written
agreement of the parties hereto, subject to the limitations set forth herein
and in the Indenture.

 

Section 11.08         Counterparts.  This Agreement may be executed in any number
of counterparts, each of which, when so executed and delivered, shall be an
original; but such counterparts shall together constitute but one and the same
Agreement.

 

Section 11.09         Severability.  If any clause, provision or section of
this Agreement shall, for any reason, be held illegal or invalid by any court,
the illegality or invalidity of such clause, provision or section shall
not affect any of the remaining clauses, provisions or sections hereof, and
this Agreement shall be construed and enforced as if such illegal or invalid
clause, provision or section had not been contained herein.  In case any agreement or obligation contained
in this Agreement is held to be in violation of law, then such agreement or
obligation shall be deemed to be the agreement or obligation of the County or
the Company, as the case may be, to the full extent permitted by law.

 

24

 

IN WITNESS WHEREOF, the parties hereto have caused this Financing
Agreement to be duly executed as of the day and year first above written.

 

 

	
   

  	
  ADAMS COUNTY, COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /S/ LARRY W. PACE

  	
   

  
	
   

  	
   

  	
  Chair, Board of County

  
	
   

  	
   

  	
  Commissioners

  
	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /S/ KRISTEN HOOD

  	
   

  	
   

  
	
  Deputy County Clerk and Recorder

  	
   

  
	
   

  	
   

  
	
   

  	
  PUBLIC SERVICE COMPANY OF

  
	
   

  	
  COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /S/ GEORGE E. TYSON II

  	
   

  
	
   

  	
   

  	
  Vice President and Treasurer

  
	
   

  	
   

  
	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
    /S/ PATRICE D. BLAESER

  	
   

  	
   

  
	
  Assistant Secretary

  	
   

  
								

 

 

	
  STATE OF COLORADO

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF ADAMS

  	
  )

  

 

On this 10th day of August, 2005, before me personally appeared Larry
W. Pace and Kristen Hood, the Chairman of the Board of County Commissioners and
the Deputy County Clerk and Recorder, respectively, of ADAMS COUNTY, COLORADO,
a public body corporate and politic organized and existing under the
Constitution and laws of the State of Colorado, one of the parties that
executed the within and foregoing instrument, and the said Larry W. Pace and Kristen
Hood, severally, acknowledged the said instrument to be the free and voluntary
act and deed of said County, 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 official seal of said County.

 

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

 

My notarial commission expires March 18, 2006

 

 

	
   

  	
    /S/ LINDA A. ROBLYER

  
	
   

  	
  Notary Public

  

 

(SEAL)

 

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  ) SS.

  
	
  COUNTY OF MINNEAPOLIS

  	
  )

  

 

On this 12th day of August, 2005, before me personally appeared George
E. Tyson II and Patrice D. Blaeser the 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 parties that executed the within and foregoing instrument, and the said
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.

 

My notarial commission expires 1-31-2010

 

 

	
   

  	
    /S/ Pamela C. Wilson

  
	
   

  	
  Notary Public

  

 

(SEAL)

 

2

 

EXHIBIT A

 

FACILITIES

 

Part I – Arapahoe Facilities

 

Acid resistant lining for the Unit No. 3
and Unit No. 4 stack consisting of: the addition of an acid resistant
cement to the existing liner.

 

A fabric filter dust collector (“FFDC”) for
Unit No. 4 consisting of: twelve compartments of 34’ x 1’ filtering bags,
ash collection hoppers, ductwork, supporting structures, foundations, two
reverse air fans, electrical controls, and other related equipment and
facilities including the remaining ductwork of the existing mechanical
collector.

 

Part II – Cameo Facilities

 

That portion of the emission monitoring
equipment remaining following modification to the Unit No. 2 air pollution
control equipment.

 

Part III – Cherokee Facilities

 

That portion of the wet scrubbers remaining
following modification to the air pollution control equipment.

 

Electrical equipment on the Unit No. 1
and Unit No. 3 scrubbers consisting of one 115,000 volt oil circuit
breaker, one 115,000 volt to 13,000 volt stepdown transformer, power cable, two
13,000 volt to 4,160 volt transformers, switchgear, protective equipment,
building, heating, lighting, and other related equipment.

 

Acid resistant lining for the Unit No. 1
and Unit No. 2 stack consisting of: sandblasting the inner liner and
adding an acid resistant coating.

 

Acid resistant lining for the Unit No. 3
stack consisting of: sandblasting the inner liner and adding an acid resistant
coating.

 

Acid resistant lining for the Unit No. 4
stack consisting of: sandblasting the inner liner, adding an acid resistant
coating and new breaching opening.

 

Opacity monitoring equipment on Units No. 1-4
remaining following modification to the air pollution control equipment.

 

A fly ash removal system for Unit No. 1
consisting of: valves, piping, ash silo, air conveying system, and other
related equipment.

 

Modifications to the plant waste water
management infrastructure consisting of: the addition of a plant effluent line,
a Parshall flume, instrumentation, a meter house, an effluent

 

A-1

 

diversion structure, a clarifier to remove suspended solids from an ash
pond overflow, clarification ponds, a neutralization facility, and other
related equipment.

 

An FFDC for Unit No. 1 consisting of:
twelve compartments for 34’ x 1’ filtering bags, ash collection hoppers,
ductwork, supporting structures, foundations, two reverse air fans, electrical
controls, and other related equipment and facilities including the remaining
ductwork of the existing mechanical collector.

 

Part IV – Valmont Facilities

 

That portion of the wet scrubber and related
plant wastewater management infrastructure remaining following modification to
the air pollution control equipment.

 

A fly ash removal system for Unit No. 5
consisting of: valves, piping, air conveying system, hydroveyor and other
related equipment.

 

Opacity monitoring equipment and related
wiring and equipment remaining following modification to the air pollution
control equipment.

 

An FFDC for Unit No. 5 consisting of:
sixteen compartments of 34’ x 1’ filtering bags, ash collection hoppers,
ductwork, supporting structures, foundations, two reverse air fans, electrical
controls, and other related equipment and facilities including the remaining
ductwork of the existing mechanical collector.

 

Part V – Zuni Facilities

 

An oil storage system consisting of: a 12
million gallon oil storage facility including (3) 4-million gallon tanks,
berms, unloading and transfer pumps, truck and rail unloading facilities,
necessary controls, and other related equipment.

 

Installation of a 100 percent capacity fuel
oil burning system on the Unit No. 3 steam generating boiler consisting
of: 12 main burner assemblies, 6 pilot assemblies, piping, controls and safety
devices, fuel heating and pumping equipment, and other related equipment.

 

Part VI – Pawnee Facilities

 

Electrostatic Precipitator System.
This system removes particulates consisting of fly ash from flue gases prior to
emission into the atmosphere.  This
system was replaced with a Fabric Filter Dust Collector (“FFDC”).  However, remaining equipment includes:
isolation devices permitting a shutdown of individual modules, electrical
controls, power supplies, support steel, foundations and floor slabs for the
precipitator, and foundations for duct support steel.

 

Fly Ash Removal System.  The fly ash removed from the flue gas by the
FFDC is stored and disposed of by a fly ash removal system.  These facilities consist of: a storage silo,
blowers, valves, piping, an air conveying system, and functionally related and
subordinate equipment.

 

A-2

 

Clay Liner at Fly Ash Disposal Pond.  The fly ash is conveyed from the FFDC to the
fly ash storage silo.  From the silo, the
ash is hauled by truck to the fly ash disposal pond.  This pond is lined with clay to prevent the
discharge of contaminants into the surface water or groundwater.

 

Clarifier—Softener Underflow Treatment System.  These facilities consist of: a sludge
thickener, supernatant tank and supernatant pumps, associated piping, and
controls.  The system treats waste
effluent from the incoming water treatment system by removing pollutants for
disposal in cake-form in the ash ponds.

 

Waste Water Concentrators.  The concentrators are an element of the zero
water discharge system.  The
concentrators are heater evaporators used to separate pollutants from the
cooling tower blowdown water.  The system
discharges waste to the Decant Pit for subsequent draining to Evaporation Pond
A.  The system includes: concentrator
feed pumps, a pumphouse, piping, the concentrators themselves, and electrical
equipment necessary for operation of the concentrators.

 

Sanitary Sewage Treatment Plant.  This plant, for the treatment of domestic
sewage, consists of: a sewage treatment building, interior mechanical equipment
and sewer lines.

 

Coal Storage Lining and Run-off Pond.  The coal pile storage area and the coal pile
run-off pond are lined with a clay liner to prevent coal pile run-off water
from entering and polluting the groundwater.

 

Evaporation Pond System.  The evaporation pond system is also an
element of the zero water discharge system. 
It consists of four man-made ponds. 
The ponds receive contaminated waters from various drain systems within
the Plant.  The ponds are lined with
impervious membrane liners to prevent polluted waters from discharging into the
surface water or groundwater.

 

Other Lined Storage Ponds.  These ponds are an element of the zero water
discharge system.  The pond system consists
of: a high quality of water storage pond, an intermediate quality of water
storage pond, a bottom ash water storage pond, an ash water recovery pond, and
a Pond “L”.  All ponds are lined with
impervious membrane liners to prevent the discharge of polluted water into the
surface water or groundwater.

 

Decant Pit.  This is a concrete pit coated with a
corrosive-resistant material.  The waste
brine slurry from the waste water concentrators will be collected in a decant
pit to allow suspended solvents to settle; the supernatant will overflow into
the evaporation pond.  The decant pit
will prevent discharge of polluted water into the surface water or groundwater.

 

Waste Water Neutralization Tank and Oil
Skimmer.  The
neutralization tank is a tank which combines acidic and basic waste water for
neutralization, thus preventing damage to the evaporation ponds upon
discharge.  The oil skimmer is a basin
used to separate oil from water.

 

A-3

 

EXHIBIT B

 

DISCONTINUED
FACILITIES

 

Part I – Arapahoe Facilities

 

A wet scrubber for Unit No. 4 consisting
of: one UOP/ACD three stage Model 5690 wet scrubber, a booster fan with 4,000
horsepower electric drive motor, three recirculation pumps and 350 horsepower
electric drive motors, miscellaneous electrical switchgear, piping and
ductwork, test platforms, continuous monitoring instrumentation, and other
related equipment.

 

A gas conditioning system consisting of: one
UOP/ACD acid evaporator to produce acid vapor from liquid sulfuric acid to
condition the fly ash in the flue gas including an acid storage tank, an acid
day tank, metering pumps, vaporizing towers, air compressors, heating elements,
piping and ductwork, continuous monitoring and control instrumentation, and
other related equipment.

 

The gas conditioning system for Unit No. 2
consisting of: injection probes and a system skid containing an air blower,
vaporizer and a catalytic converter to increase the existing precipitator’s
efficiency.

 

One cold side precipitator for Unit No. 1
consisting of: the necessary ductwork, collection box and hoppers, collecting
curtains and emitter wires, electrical controls, power supplies and rectifiers,
ash removal system, and other related equipment.

 

A plant waste water management infrastructure
for the scrubber slurry blowdown from the Unit No. 4 scrubber consisting
of: neutralization facilities, lime feed and handling equipment, electrical
power supplies and controls, and other related equipment.

 

Part II – Cameo Facilities

 

A gas conditioning system for the Unit No. 2
Electrostatic Precipitator consisting of: one UOP/ACD acid evaporator to
produce acid vapor from liquid sulfuric acid to condition the fly ash in the
flue gas including an acid storage tank, acid day tank, metering pumps, vaporizing
towers, air compressors, heating elements and other miscellaneous electrical
equipment, piping and ductwork, continuous monitoring and control
instrumentation, and other related equipment.

 

A portion of the emission monitoring
equipment for Unit No. 2 consisting of: a flue gas sampling and monitoring
system.

 

A portion of the Unit No. 2 precipitator
consisting of: foundations and structures retained for use with subsequent
modifications to the air pollution control equipment.

 

A precipitator for Unit No. 1 consisting
of: collecting plates, emitter wires, transformer rectifiers, power supply,
rappers, instrumentation and controls, and other related equipment.

 

Part III – Cherokee Facilities

 

A Lodge Cottrell, Inc. gas conditioning
facility to convert liquid stabilized sulfur trioxide to its gaseous state for
Unit Nos. 1, 2 and 4 consisting of: a sulfan building and a sulfan storage
tank, four steam heated evaporators, three instrument air compressors, air
receiver, air dryers, two natural gas fired boilers, connecting and
distribution piping, miscellaneous electrical switchgear, continuous monitoring
and control instrumentation, and other related equipment.

 

B-1

 

A wet scrubbing unit facility for Unit No. 1
consisting of: one UOP/ACD three stage Model 6000 wet scrubber, two booster
fans with 2,000 horsepower electric drive motors, four recirculation pumps with
250 horsepower electric drive motors, miscellaneous electrical switchgear,
piping and ductwork, test platforms, continuous monitoring equipment, and other
related equipment.

 

A wet scrubbing unit facility for Unit No. 3
consisting of: one UOP/ACD three stage Model 6700 wet scrubber with three
internal compartments, two booster fans with 2500 horsepower electric drive
motors, five recirculation pumps with 250 horsepower electric drive motors,
miscellaneous electrical switchgear, piping and ductwork, test platforms,
continuous monitoring and control instrumentation, and other related equipment.

 

A wet scrubbing unit facility for Unit No. 4
consisting of: four UOP/ACD three stage Model 4200 wet scrubbers, four booster
fans with 3,000 horsepower electric drive motors, twelve recirculation pumps
with 250 horsepower electric drive motors, miscellaneous electrical switchgear,
piping and ductwork, test platforms, continuous monitoring instrumentation, and
other related equipment.

 

Sulfan Building Vapor Control consisting of:
a berm around the storage tank draining to a fibre glass tank, a foam system to
suppress the SO3 vapor, equipment as needed to vapor proof the
building, and other related equipment.

 

Phase I of modification of ash removal system
consisting of: two Gould ash water pumps with 250 horsepower General Electric
motor drives, a 10-inch ash water supply line, sixteen United Conveyor
Corporation modified wet type bottom hoppers with four jet pulsion pumps and
related equipment, a 10-inch Allen-Sherman-Hoff Ascholite ash sluice pipeline,
a 12-inch tie line, and other related equipment.

 

That portion of Phases II and III of
modification to the Unit No. 1 ash removal system consisting of: one bag
house type filter, air blowers and associated equipment, and other related
equipment.

 

That portion of an ash silo for storage of
fly ash from Unit No. 1.

 

A Western Precipitator acid evaporator to
produce acid vapor for Unit No. 3 including: an acid day tank, acid pumps,
acid vaporizer, natural gas boiler, fan, ductwork and piping, miscellaneous
electrical switchgear, continuous monitoring and control instrumentation, and
other related equipment.

 

Modifications of the electrostatic
precipitator for Unit No. 2 including: three additional
transformer-rectifier sets with the necessary instrumentation controls, power
supplies, and other related equipment.

 

Part IV – Valmont Facilities

 

A wet scrubbing unit facility for 60% of the
flue gas from Unit No. 5 consisting of: one UOP/ACD three stage Model 5000
wet scrubber, one booster fan with a 4,000 horsepower electric drive motor,
four recirculation pumps with 200 horsepower electric drive motors,
miscellaneous electrical switchgear, piping and ductwork, test platforms,
continuous monitoring and control instrumentation, and other related equipment.

 

B-2

 

Modification of the wet scrubbing unit
facility for Unit No. 5 to clean 40% of the flue gas, consisting of: the
scrubber vessel, fan, recirculation pumps, electric motors, miscellaneous
electrical switchgear, piping, ductwork, and other related equipment.

 

Modification of the precipitator controls for
Unit No. 5 consisting of: the addition of a new solid state control system
and panels, one transformer-rectifier set, the division of the one outlet section into
two electrical sections, and other related equipment.

 

A plant waste water management infrastructure
consisting of: modification of a scrubber tower to incorporate a lime/limestone
scrubbing process, slurry recirculation piping, hold tanks, alkali mix tanks,
recirculation pumps, slurry draw-off pumps, a new settling pond, miscellaneous
instrumentation and controls, a clarifier, a vacuum filter, and other related
equipment.

 

Part V – Zuni Facilities

 

None.

 

Part VI – Pawnee Facilities

 

Electrostatic Precipitator System.  This system removes particulates consisting
of fly ash from flue gases prior to emission into the atmosphere.  This system was replaced with a Fabric Filter
Dust Collector (“FFDC”).  Retired
equipment includes: the hot-side electrostatic precipitator, associated duct
work, isolation devices permitting a shutdown of individual modules while the
Plant is in operation, ash hoppers, electrical controls, power supplies and
rectifiers, and subordinate equipment and facilities.  The system also includes support steel, foundations
and floor slabs for the precipitator, foundations for duct support steel, a
precipitator control building, and a heating, ventilation, and air conditioning
system necessary for proper operation of precipitator controls.

 

Fly Ash Removal System.  The fly ash removed from the flue gas by the
FFDC is stored and disposed of by a fly ash removal system.  These facilities consist of: mechanical
conveyors.

 

Clarifier—Softener Underflow Treatment System.  These facilities consist of: floc presses.

 

B-3

 

EXHIBIT C

 

FORM OF
THE NOTE

 

THIS PROMISSORY NOTE MAY NOT
BE ASSIGNED, PLEDGED, ENDORSED OR OTHERWISE TRANSFERRED EXCEPT BY THE ADAMS
COUNTY, COLORADO TO U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, OR, IN
ACCORDANCE WITH THE INDENTURE OF TRUST REFERRED TO HEREIN, BY THE TRUSTEE UNDER
THE INDENTURE OF TRUST TO A SUCCESSOR TRUSTEE THEREUNDER.

 

PROMISSORY
NOTE

 

	
  $129,500,000

  	
   

  	
  [Date of
  Issue]

  

 

FOR VALUE RECEIVED, Public Service Company of Colorado, a Colorado
corporation (the “Company”), does hereby promise to pay to the order of
Adams County, Colorado (the “County”), without setoff or deduction, the
principal sum of ONE HUNDRED TWENTY-NINE MILLION FIVE HUNDRED THOUSAND DOLLARS
($129,500,000) and interest on the unpaid principal amount thereof and any
other amounts necessary for the payment of principal of, premium, if any, on
and interest on the Adams County, Colorado Pollution Control Refunding Revenue
Bonds, 2005 Series A (Public Service Company of Colorado Project) (the “2005
Series A Bonds”) issued by the County under the Indenture of Trust,
dated as of August 1, 2005 (the “Indenture”), between the County
and U.S. Bank National Association, as Trustee (the “Trustee”), all such
amounts to be (a) paid in accordance with the Financing Agreement, dated
as of August 1, 2005 (the “Financing Agreement”), between the
County and the Company, at the rates and in the amounts indicated in the
Principal and Interest Payment Schedule attached hereto and made a part
hereof, as such Principal and Interest Payment Schedule may be amended
from time pursuant to the Financing Agreement, (b) paid on or prior to the
payment date set forth in said Principal and Interest Payment Schedule, and (c) applied
in accordance with the Indenture to the payment of principal of, and premium,
if any, and interest on, the 2005 Series A Bonds Outstanding within the
meaning of the Indenture, when due, whether indicated on the Principal and
Interest Payment Schedule, at maturity, upon redemption, acceleration or
otherwise.

 

Capitalized terms used but not defined herein have the meanings given
to them in the Financing Agreement, except that if the use of such term
requires an alternative meaning for such term or the common meaning of such
term should apply, such alternative meaning or common meaning, as the case may
be, shall be given effect.

 

This Promissory Note evidences the Company’s payment obligations under Section 5.01
and Section 9.03 of the Financing Agreement.

 

Any payment or deemed payment by the Company of principal of, premium,
if any, or interest (a) on the bond issued under the Company Mortgage to
the Bond Insurer, or (b) pursuant to the Insurance Agreement with respect
to reimbursement to the Bond Insurer of payments

 

C-1

 

made by the Bond Insurer under the Financial
Guaranty Insurance Policy relating to principal of or interest on the 2005 Series A
Bonds or (c) on the 2005 Series A Bonds shall, to the extent thereof,
without duplication, be deemed to satisfy and discharge the obligation of the
Company, if any, to make the payment of principal of, premium, if any, or
interest on this Note which is then due; provided, however, if any such payment
or deemed payment by the Company is recovered from the recipient of such
payment in accordance with a final, nonappealable order of a court of competent
jurisdiction as a result, then the obligation of the Company to make such
payment of principal of, premium, if any, or interest shall no longer be deemed
satisfied and discharged for purposes of this Note.

 

This Promissory Note may be prepaid at the option of the Company and
shall be prepaid by the Company if required by the Financing Agreement, in each
case at the prepayment price set forth in Article 9 of the Financing
Agreement, to effect the defeasance or redemption of all or a portion of the
2005 Series A Bonds.

 

Each payment required to be made hereunder shall be paid (a) in
lawful money of the United States of America, (b) in funds which shall be
immediately available on such payments’ due date, (c) to the Trustee or
its agent at its principal corporate trust office in Denver, Colorado, or such
other place as the Trustee or a successor Trustee may designate in writing to
the County and the Company, and (d) no later than 10:00 a.m.,
prevailing time in the city where such principal corporate trust office is
located, on the due date for such payment. 
If amounts due hereunder are not paid when due, the unpaid balance shall
continue to bear interest from such due date until the date of payment.

 

This Promissory Note is subject to all of the terms, conditions and
provisions of the Financing Agreement and the Indenture, including those
respecting prepayment and the acceleration of maturity.  The outstanding principal hereof is subject
to acceleration as provided in the Indenture and the Financing Agreement.

 

Notwithstanding anything to the contrary contained herein or in the
Financing Agreement, if an Event of Default by the Company under the Financing
Agreement, the Company shall pay the holder of this Promissory Note all the
costs of such holder in connection with the enforcement of its rights under the
Financing Agreement or this Note and the collection of amounts due hereunder,
including reasonable attorneys’ fees.

 

The Company hereby acknowledges that, pursuant to the Financing
Agreement, the County is assigning to the Trustee all of the County’s right,
title and interest in and to this Promissory Note.

 

THE COMPANY HEREBY WAIVES DILIGENCE, DEMAND, PRESENTMENT FOR PAYMENT,
NOTICE OF NONPAYMENT, PROTEST, NOTICE OF DISHONOR AND NOTICE OF PROTEST, AND
SPECIFICALLY CONSENTS TO AND WAIVES NOTICE OF ANY RENEWALS, MODIFICATIONS OR
EXTENSIONS OF THIS PROMISSORY NOTE, WHETHER IN FAVOR OF THE COMPANY OR ANY
OTHER PERSONS, AND HEREBY WAIVES ANY DEFENSE BY REASON OF EXTENSION OF TIME FOR
PAYMENT OR OTHER INDULGENCE GRANTED BY THE HOLDER OF THIS PROMISSORY NOTE.

 

C-2

 

No delay or failure of the holder of this Promissory Note in exercising
any right, remedy or privilege under this Promissory Note shall affect such
right, remedy or privilege, nor shall any single or partial exercise thereof or
any abandonment or discontinuance of steps to enforce such a right, remedy or
privilege preclude any further exercise thereof or the exercise of any other
right, remedy or privilege.  The rights,
remedies and privileges of the holder of this Promissory Note hereunder are
cumulative and not exclusive of any rights, remedies or privileges which the
holder of this Promissory Note would otherwise have.  Any waiver, permit, consent or approval of
any kind or character on the part of the holder of this Promissory Note of any
breach or default under this Promissory Note, or of any provision or condition
of this Promissory Note, must be in writing and shall be effective only to the
extent specifically set forth in such writing. 
No notice to or demand on the Company shall entitle the Company to any
other further notice or demand in similar circumstances.  A waiver on any one occasion shall not be
construed as a waiver or bar to any right, remedy or privilege on any other
occasion.

 

The recourse of the holder of this Promissory Note under this
Promissory Note for default or breach under this Promissory Note shall be
limited to the rights provided therein; and without limitation of the
generality of the foregoing, neither the Company nor any present or future
director, officer, agent, employee or partner thereof shall have any personal
liability for the indebtedness evidenced by this Promissory Note or under or by
reason of the Financing Agreement, except as expressly provided herein or
therein.

 

This Promissory Note may not be amended or modified except by a written
agreement in accordance with the terms of the Financing Agreement and the
Indenture.

 

If any provision hereof is held to be invalid or unenforceable by a
court of competent jurisdiction, the other provisions of this Promissory Note
shall remain in full force and effect and shall be liberally construed in favor
of the holder of this Promissory Note.

 

This Promissory Note shall bind the Company and, to the extent
applicable, its successors and assigns, and the benefits hereof shall inure to
the Trustee and any successor trustee under the Indenture.

 

THIS PROMISSORY NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO.

 

IN WITNESS WHEREOF,
the Company has caused this Promissory Note to be duly executed and its
corporate seal to be duly affixed hereto by authorized officers of the Company
on this          day of August, 2005.

 

 

	
   

  	
  PUBLIC SERVICE COMPANY OF

  
	
   

  	
  COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

C-3

 

	
  (SEAL)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  
				

 

C-4

 

PRINCIPAL AND INTEREST PAYMENT SCHEDULE

 

	
  Payment
  Date

  	
   

  	
  Principal Amount Due

  	
   

  	
  Interest Amount Due

  	
   

  	
  Total Payment Due

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

C-5

 

ENDORSEMENT

 

This Promissory Note hereby is endorsed, without recourse, to the order
of U.S. Bank National Association, as Trustee under the Indenture of Trust,
dated as of August 1, 2005, between the undersigned, Adams County,
Colorado, and U.S. Bank National Association, in such capacity, relating to the
Adam County, Colorado Pollution Control Refunding Revenue Bonds, 2005 Series A
(Public Service Company of Colorado Project).

 

 

	
   

  	
  ADAMS COUNTY, COLORADO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Chair, Board of County Commissioners

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
					

 

[END
OF FORM OF THE NOTE]

 

C-6Exhibit
4.02

 

 

PUBLIC SERVICE COMPANY

OF COLORADO

 

 

TO

 

 

U.S. BANK TRUST NATIONAL
ASSOCIATION,

 

                                     as
Trustee

 

 

 

 

Supplemental Indenture No. 16

 

 

Dated as of August 1, 2005

 

 

Supplemental to the Indenture

dated as of October 1, 1993

 

 

 

Establishing the Securities of Series No. 16

designated First Collateral Trust Bonds, Series No. 16
(MBIA Collateral Bonds)

 

 

SUPPLEMENTAL INDENTURE NO. 16,
dated as of August 1, 2005, between PUBLIC
SERVICE COMPANY OF COLORADO, a corporation duly organized and
existing under the laws of the State of Colorado (hereinafter sometimes called
the “Company”), and U.S. BANK TRUST NATIONAL
ASSOCIATION (formerly First Trust of New York, National Association),
a national banking association, as successor trustee (hereinafter sometimes
called the “Trustee”) to Morgan Guaranty Trust Company of New York under the
Indenture, dated as of October 1, 1993 (hereinafter called the “Original
Indenture”), as previously supplemented and as further supplemented by
this Supplemental Indenture No. 16. 
The Original Indenture and any and all indentures and all other
instruments supplemental thereto are hereinafter sometimes collectively called
the “Indenture”.

 

Recitals
of the Company

 

The Original Indenture was authorized, executed and delivered by the
Company to provide for the issuance from time to time of its Securities (such
term and all other capitalized terms used herein without definition having the
meanings assigned to them in the Original Indenture), to be issued in one or
more series as contemplated therein, and to provide security for the payment of
the principal of and premium, if any, and interest, if any, on the Securities.

 

The Company has heretofore executed and delivered to the Trustee the
Supplemental Indentures referred to in Schedule A hereto for the purpose
of establishing a series of bonds and appointing the successor Trustee.

 

The Company, concurrently with the execution and delivery of this
Indenture and as a condition to the execution and delivery hereof, will execute
and deliver a Financing Agreement (the “Financing Agreement”), dated as of August 1,
2005, with Adams County, Colorado (the “County”) pursuant to which the County
will in effect loan the proceeds of the 4.375% Adams County, Colorado Pollution
Control Refunding Revenue Bonds, 2005 Series A (Public Service of Colorado
Project) ( the “2005 Series A Bonds”) to be issued pursuant to the
Indenture of Trust between the County and U.S. Bank National Association, as
Trustee (the “2005 Series A Trustee”), dated as of August 1, 2005
(the “2005 Series A Bond Indenture”) to provide funds, together with other
available moneys, for (i) the redemption of $79,500,000 aggregate
principal amount of Adams County, Colorado Pollution Control Refunding Revenue
Bonds, 1993 Series A (Public Service Company of Colorado Project) and (ii) the
redemption of $50,000,000 aggregate principal amount of Morgan County, Colorado
Pollution Control Refunding Revenue Bonds, 1993 Series A (Public Service
Company of Colorado Project).  In
connection with the Financing Agreement, the Company will execute and deliver a
note to the County in the amount of the proceeds (the “2005 Series A Note”)
which will be immediately assigned to the 2005 Series A Trustee in
accordance with the Financing Agreement. 
The payment of principal of and interest on the 2005 Series A Note
will be applied solely to the payment of the related 2005 Series A Bonds.

 

Concurrently with the issuance of the 2005 Series A Bonds, MBIA
Insurance Corporation, a New York stock insurance corporation (“MBIA”) will
issue a financial guaranty insurance policy (the “Policy”) to the County
relating to the 2005 Series A Bonds. 
The Company will enter into an Insurance and Reimbursement Agreement
(the “Insurance Agreement”), dated as of August 1, 2005, with MBIA and the
2005 Series A Trustee as part of the consideration for the delivery by
MBIA of the Policy, pursuant to which the Company is absolutely and
unconditionally obligated, among other matters, to reimburse MBIA for all
amounts advanced by MBIA under the Policy. 
As additional consideration for MBIA issuing the Policies, the Company
will issue a series of Securities to be designated “First Collateral Trust
Bonds, Series No. 16 (MBIA Collateral Bonds) to MBIA.  The Company now desires to establish,
pursuant to this Indenture, such series of Securities to be hereinafter
sometimes called “Series No. 16”.

 

 

The Company has duly authorized the execution and delivery of this
Supplemental Indenture No. 16 to establish the Securities of Series No.16
and has duly authorized the issuance of such Securities; and all acts necessary
to make this Supplemental Indenture No. 16 a valid agreement of the
Company, and to make the Securities of Series No. 16 valid
obligations of the Company, have been performed.

 

Granting
Clauses

 

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE
NO. 16 WITNESSETH, that, in consideration of the
premises, and in order to secure the payment of the principal of and premium,
if any, and interest, if any, on all Securities from time to time Outstanding
and the performance of the covenants contained therein and in the Indenture and
to declare the terms and conditions on which such Securities are secured, the
Company hereby grants, bargains, sells, releases, conveys, assigns, transfers,
mortgages, pledges, sets over and confirms to the Trustee, and grants to the
Trustee a security interest in, the following:

 

Granting
Clause First

 

All right,
title and interest of the Company, as of the date of the execution and delivery
of this Supplemental Indenture No. 16, in and to property (other than
Excepted Property), real, personal and mixed and wherever situated, in any case
used or to be used in or in connection with the Electric Utility Business
(whether or not such use is the sole use of such property), including without
limitation (a) all lands and interests in land described or referred to in
Schedule B hereto; (b) all other lands, easements, servitudes,
licenses, permits, rights of way and other rights and interests in or relating
to real property used or to be used in or in connection with the Electric
Utility Business or relating to the occupancy or use of such real property,
subject however, to the exceptions and exclusions set forth in clause (a) of
Granting Clause First of the Original Indenture; (c) all plants,
generators, turbines, engines, boilers, fuel handling and transportation
facilities, air and water pollution control and sewage and solid waste disposal
facilities and other machinery and facilities for the generation of electric
energy; (d) all switchyards, lines, towers, substations, transformers and
other machinery and facilities for the transmission of electric energy; (e) all
lines, poles, conduits, conductors, meters, regulators and other machinery and
facilities for the distribution of electric energy; (f) all buildings,
offices, warehouses and other structures used or to be used in or in connection
with the Electric Utility Business; (g) all pipes, cables, insulators,
ducts, tools, computers and other data processing and/or storage equipment and
other equipment, apparatus and facilities used or to be used in or in
connection with the Electric Utility Business; (h) any or all of the
foregoing properties in the process of construction; and (i) all other property,
of whatever kind and nature, ancillary to or otherwise used or to be used in
conjunction with any or all of the foregoing or otherwise, directly or
indirectly, in furtherance of the Electric Utility Business;

 

Granting
Clause Second

 

Subject to the
applicable exceptions permitted by Section 810(c), Section 1303 and Section 1305
of the Original Indenture, all property (other than Excepted Property) of the
kind and nature described in Granting Clause First which may be hereafter
acquired by the Company, it being the intention of the Company that all such
property acquired by the Company after the date of the execution and delivery
of this Supplemental Indenture No.16 shall be as fully embraced within and
subjected to the Lien hereof as if such

 

2

 

property were owned by the Company as of the date of the execution and
delivery of this Supplemental Indenture No. 16;

 

Granting
Clause Fourth

 

All other
property of whatever kind and nature subjected or required to be subjected to
the Lien of the Indenture by any of the provisions thereof;

 

Excepted
Property

 

Expressly
excepting and excluding, however, from the Lien and operation of the Indenture
all Excepted Property of the Company, whether now owned or hereafter acquired;

 

TO HAVE AND TO HOLD
all such property, real, personal and mixed, unto the Trustee, its successors
in trust and their assigns forever;

 

SUBJECT, HOWEVER, to
(a) Liens existing at the date of the execution and delivery of the
Original Indenture (including, but not limited to, the Lien of the PSCO 1939
Mortgage), (b) as to property acquired by the Company after the date of
the execution and delivery of the Original Indenture, Liens existing or placed
thereon at the time of the acquisition thereof (including, but not limited to,
the Lien of any Class A Mortgage and purchase money Liens), (c) Retained
Interests and (d) any other Permitted Liens, it being understood that,
with respect to any property which was at the date of execution and delivery of
the Original Indenture or thereafter became or hereafter becomes subject to the
Lien of any Class A Mortgage, the Lien of the Indenture shall at all times
be junior, subject and subordinate to the Lien of such Class A Mortgage;

 

IN TRUST, NEVERTHELESS,
for the equal and proportionate benefit and security of the Holders from time
to time of all Outstanding Securities without any priority of any such Security
over any other such Security;

 

PROVIDED, HOWEVER,
that the right, title and interest of the Trustee in and to the Mortgaged
Property shall cease, terminate and become void in accordance with, and subject
to the conditions set forth in, Article Nine of the Original Indenture,
and if, thereafter, the principal of and premium, if any, and interest, if any,
on the Securities shall have been paid to the Holders thereof, or shall have
been paid to the Company pursuant to Section 603 of the Original
Indenture, then and in that case the Indenture shall terminate, and the Trustee
shall execute and deliver to the Company such instruments as the Company shall
require to evidence such termination; otherwise the Indenture, and the estate
and rights thereby granted shall be and remain in full force and effect; and

 

THE PARTIES HEREBY FURTHER COVENANT AND AGREE
as follows:

 

ARTICLE ONE

Securities of Series No. 16

 

There are hereby established the Securities of Series No. 16.  The Securities of Series No. 16 are
to be issued to MBIA pursuant to the Insurance Agreement as part of the
consideration for the delivery by MBIA of the Policy.  The Securities of Series No. 16
shall have the terms and characteristics set forth below (the lettered
subdivisions set forth below corresponding to the lettered subdivisions of Section 301
of the Original Indenture):

 

3

 

(a)           the title of the Securities of
such series shall be “First Collateral Trust Bonds, Series No. 16
(MBIA Collateral Bonds)”; provided, however, that, at any time after the PSCO
1939 Mortgage shall have been satisfied and discharged, the Company shall have
the right, without any consent or other action by the Holders of such
Securities, to change such title in such manner as shall be deemed by the
Company to be appropriate to reflect such satisfaction and discharge, such change
to be evidenced in an Officer’s Certificate;

 

(b)           the Securities of Series No. 16
shall be authenticated and delivered in the aggregate principal amount of
$129,500,000;

 

(c)           interest on the Securities of Series No. 16
shall be payable to the Persons in whose names such Securities are registered
at the close of business on the Regular Record Date for such interest, except
as otherwise expressly provided in the form of such Securities attached as Exhibit A
hereto;

 

(d)           the principal of the Securities
of Series No. 16 shall be payable on September 1, 2017, the
Stated Maturity.

 

(e)           the Securities of Series No. 16
shall bear interest at a rate of 4.375% per annum; interest shall accrue on the
Securities of Series No. 16 from August 18, 2005, or the most recent
date to which interest has been paid or duly provided for; the Interest Payment
Dates for such Securities shall be March 1 and September 1 in each
year, commencing March 1, 2006, and the Regular Record Dates with respect
to the Interest Payment Dates for such Securities shall be February 15 and
August 15 in each year, respectively (whether or not a Business Day);

 

(f)            the Corporate Trust Office of
U.S. Bank Trust National Association in New York, New York shall be the place
at which (i) the principal and interest on the Securities of Series No. 16
shall be payable, (ii) registration of transfer of such Securities may be
effected, (iii) exchanges of such Securities may be effected and (iv) notices
and demands to or upon the Company in respect of such Securities and the
Indenture may be served; and U.S. Bank Trust National Association shall be the
Security Registrar for such Securities; provided, however, that the Company
reserves the right to change, by one or more Officer’s Certificates, any such
place or the Security Registrar; and provided, further, that the Company
reserves the right to designate, by one or more Officer’s Certificates, its
principal office in Denver, Colorado as any such place or itself as the
Security Registrar;

 

(g)           not applicable;

 

(h)           the Securities of Series No. 16
shall be redeemable as follows:

 

(i)            in the event that any 2005 Series A
Bonds are to be redeemed following a determination of taxability pursuant to Section 2.02(e)(iii) of
the 2005 Series A Bond Indenture, the Securities of Series No. 16,
in a principal amount equal to the principal amount of 2005 Series A Bonds
to be redeemed, shall be redeemed on the date fixed for redemption of the 2005 Series A
Bonds, at the principal amount thereof plus accrued interest to the redemption
date;

 

(ii)           in the event that all 2005 Series A
Bonds have become immediately due and payable pursuant to Section 9.02 of
the 2005 Series A Bond Indenture

 

4

 

following the occurrence of an Event of Default (as defined in Section 9.01
of the 2005 Series A Bond Indenture), the Securities of Series No. 16
shall thereupon be redeemed at the principal amount thereof plus accrued
interest to the redemption date (the obligation to effect such redemption being
rescinded upon the rescission of such acceleration);

 

(i)            the Securities of Series No. 16
shall be issuable in denominations of $5,000 and any integral multiple thereof;

 

(j)            not applicable;

 

(k)           not applicable;

 

(l)            not applicable;

 

(m)          not applicable;

 

(n)           not applicable;

 

(o)           not applicable;

 

(p)           not applicable;

 

(q)           the Securities of Series No. 16
are to be registered in the name of MBIA Insurance Corporation.  Such Securities shall not be transferable,
nor shall any purported transfer be registered except to a successor to MBIA
under the Insurance Agreement upon delivery to the Trustee of a Company Request
requesting such transfer.

 

(r)            not applicable;

 

(s)           no service charge shall be made
for the exchange of the Securities of Series No. 16; provided, however,
that the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection with the exchange;

 

(t)            not applicable;

 

(u)                                 (i)            If the Company shall have caused
the Company’s indebtedness in respect of any Securities of Series No. 16
to have been satisfied and discharged prior to the Maturity of such Securities,
as provided in Section 901 of the Original Indenture, the Company shall,
promptly after the date of such satisfaction and discharge, give a notice to
each Person who was a Holder of any of such Securities on such date stating (A)(1) the
aggregate principal amount of such Securities and (2) the aggregate amount
of any money (other than amounts, if any, deposited in respect of accrued
interest on such Securities) and the aggregate principal amount of, the rate or
rates of interest on, and the aggregate fair market value of, any Eligible
Obligations deposited pursuant to Section 901 of the Original Indenture
with respect to such Securities and (B) that the Company will provide (and
the Company shall promptly so provide) to such Person, or any beneficial owner
of such Securities holding through such Person (upon written request to the
Company sent to an address specified in such notice), such other information as
such Person or beneficial owner, as the case may be, reasonably may request in
order to enable it to determine the federal income tax

 

5

 

consequences to it resulting from the satisfaction and discharge of the
Company’s indebtedness in respect of such Securities.  Thereafter, the Company shall, within
forty-five (45) days after the end of each calendar year, give to each Person
who at any time during such calendar year was a Holder of such Securities a
notice containing (X) such information as may be necessary to enable such
Person to report its income, gain or loss for federal income tax purposes with
respect to such Securities or the assets held on deposit in respect thereof
during such calendar year or the portion thereof during which such Person was a
Holder of such Securities, as the case may be (such information to be set forth
for such calendar year as a whole and for each month during such year) and (Y)
a statement to the effect that the Company will provide (and the Company shall
promptly so provide) to such Person, or any beneficial owner of such Securities
holding through such Person (upon written request to the Company sent to an
address specified in such notice), such other information as such Person or
beneficial owner, as the case may be, reasonably may request in order to enable
it to determine its income, gain or loss for federal income tax purposes with
respect to such Securities or such assets for such year or portion thereof, as
the case may be.  The obligation of the
Company to provide or cause to be provided information for purposes of income
tax reporting by any Person as described in the first two sentences of this
paragraph shall be deemed to have been satisfied to the extent that the Company
has provided or caused to be provided substantially comparable information
pursuant to any requirements of the Internal Revenue Code of 1986, as amended
from time to time (the “Code”) and United States Treasury regulations
thereunder.

 

(ii)           Notwithstanding the provisions
of subparagraph (i) above, the Company shall not be required to give any
notice specified in such subparagraph or to otherwise furnish any of the
information contemplated therein if the Company shall have delivered to the Trustee
an Opinion of Counsel to the effect that the Holders of such Securities will
not recognize income, gain or loss for federal income tax purposes as a result
of the satisfaction and discharge of the Company’s indebtedness in respect of
such Securities and such Holders will be subject to federal income taxation on
the same amounts and in the same manner and at the same times as if such
satisfaction and discharge had not occurred.

 

(iii)          Anything in this clause (u) to
the contrary notwithstanding, the Company shall not be required to give any
notice specified in subparagraph (i) or to otherwise furnish the
information contemplated therein or to deliver any Opinion of Counsel
contemplated by subparagraph (ii) if the Company shall have caused
Securities of Series No. 16 to be deemed to have been paid for
purposes of the Indenture, as provided in Section 901 of the Original
Indenture, but shall not have effected the satisfaction and discharge of its
indebtedness in respect of such Securities pursuant to such Section.

 

(v)           Any payment by the Company of
principal or interest on the 2005 Series A Note or pursuant to its
obligations under the Insurance Agreement to reimburse MBIA for any payments of
principal or interest made by MBIA under the Policy with respect to the 2005 Series A
Bonds shall, to the extent thereof, be deemed to satisfy and discharge the
obligation of the Company, if any, to make the payment of principal or interest
on the Securities of Series No. 16 which is then due; provided,
however, if any such payment by the Company on the 2005 Series A
Note or pursuant to its obligations under the

 

6

 

Insurance Agreement to reimburse MBIA for any payments of principal or
interest made by MBIA under the Policy with respect to the 2005 Series A
Bonds is determined to be a preferential transfer and is recovered from the
registered owner of the 2005 Series A Note or from MBIA pursuant to the
United States Bankruptcy Code in accordance with a final, nonappealable order
of a court of competent jurisdiction as a result, then the obligation of the
Company to make such payment of principal or interest on the 2005 Series A
Note or pursuant to its obligations under the Insurance Agreement to reimburse
MBIA for any payments of principal or interest made by MBIA under the Policy
with respect to the 2005 Series A Bonds shall no longer be deemed
satisfied and discharged for purposes of the Securities of Series No.16.

 

The Trustee
may conclusively presume that the obligation of the Company to pay principal
and interest on the Securities of Series No. 16 as the same shall
have become due and payable shall have been fully satisfied and discharged
unless and until it shall have received a written notice from the Holder hereof
stating that the principal or interest of Securities of Series No. 16
has become due and payable and specifying the amount of funds required to make
such payment.

 

Notwithstanding
anything to the contrary contained herein, the aggregate amount of principal
and interest on the Securities of Series No. 16 shall not exceed the
aggregate amount of the payments of principal and interest due on the 2005 Series A
Bonds covered by the Policy.

 

(w)          The Securities of Series No. 16
are subject to the following voting restrictions:  The Holder hereof shall attend such meeting
or meetings of the Holders under the Indenture or, at its option, deliver its
proxy in connection therewith, as relates to matters with respect to which it
is entitled to vote or consent.  So long
as no Event of Default (as defined under the 2005 Series A Indenture)
shall have occurred and be continuing thereunder, either at any such meeting or
meetings, or otherwise when the consent of the Holders under the Indenture is
sought without a meeting, the Holder hereof shall vote or consent with respect
thereto proportionately with the vote or consent of the Holders of all other
Securities of any series or Tranche Outstanding under the Indenture who are
eligible to vote or consent, as indicated in an Officer’s Certificate delivered
to the Holder hereof.

 

(x)            The Securities of Series No. 16
shall be substantially in the form attached hereto as Exhibit A and shall
have such further terms as are set forth in such form.

 

ARTICLE TWO

 

Miscellaneous Provisions

 

This Supplemental Indenture No. 16 is a supplement to the Original
Indenture.  As previously supplemented
and further supplemented by this Supplemental Indenture No. 16, the
Original Indenture is in all respects ratified, approved and confirmed, and the
Original Indenture, all previous supplements thereto and this Supplemental
Indenture No. 16 shall together constitute one and the same instrument.

 

SIGNATURE
PAGES FOLLOW

 

7

 

IN WITNESS WHEREOF,
the parties hereto have caused this Supplemental Indenture No. 16 to be
duly executed 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

  
					

 

 

	
  STATE OF MINNESOTA

  	
  )

  
	
   

  	
  )ss:

  
	
  CITY OF MINNEAPOLIS

  	
  )

  

 

On the 10th day of August, 2005, before me personally came George E.
Tyson II to me known, who, being by me duly sworn, did depose and say that he
is a Vice President and Treasurer of Public Service Company of Colorado, one of
the corporations described in and which executed the foregoing instrument; and
that he signed his name thereto by authority of the Board of Directors of said
corporation.

 

	
   

  	
   /S/ SHARON M. QUELLHORST

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Sharon M. Quellhorst

  
	
   

  	
  Notary Public, State of Minnesota

  
	
   

  	
  Commission Expires: January 31, 2010

  

 

8

 

	
   

  	
  U.S. BANK TRUST NATIONAL ASSOCIATION,

  
	
   

  	
   

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ BEVERLY A. FREENEY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Beverly A. Freeney

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ) ss.:

  
	
  CITY AND COUNTY OF NEW YORK

  	
  )

  

 

On the 10th day of August, 2005, before me personally came Beverly A.
Freeney, to me known, who, being by me duly sworn, did depose and say that she
is a Vice President of U.S. Bank Trust National Association, the banking
association described in and which executed the foregoing instrument; and that
she signed her name thereto by authority of the Board of Directors of said
banking association.

 

	
   

  	
   /S/ PATRICIA V. COWART

  	
   

  
	
   

  	
  Name: Patricia V. Cowart

  
	
   

  	
  Notary Public, State of New York

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Commission Expires: September 22, 2005

  

 

9

 

EXHIBIT A

 

FORM OF
SECURITY

 

 

(See legend at
the end of this Security for

restrictions on transfer and change of form)

 

 

PUBLIC SERVICE
COMPANY OF COLORADO

First Collateral Trust Bond, Series No. 16 (MBIA Collateral Bonds)

 

 

	
  Original
  Interest Accrual Date 

  	
   

  	
  August 18, 2005

  
	
  Interest
  Rate:

  	
   

  	
  4.375%

  
	
  Stated
  Maturity:

  	
   

  	
  September 1, 2017

  
	
  Interest
  Payment Dates:

  	
   

  	
  March 1 and September 1

  
	
  Regular
  Record Dates:

  	
   

  	
  February 15 and August 15

  

 

 

This Security
is not a Discount Security

within the
meaning of the within-mentioned Indenture

 

 

	
  Principal Amount

  	
  Registered No. 1

  
	
  $129,500,000

  	
   

  

 

PUBLIC SERVICE COMPANY OF COLORADO, a corporation duly organized and
existing under the laws of the State of Colorado (herein called the “Company,”
which term includes any successor corporation under the Indenture referred to
below), for value received, hereby promises to pay to MBIA INSURANCE
CORPORATION, or registered assigns, the principal sum of One Hundred
Twenty-Nine Million Five Hundred Thousand Dollars on the Stated Maturity
specified above, and to pay interest thereon from the Original Interest Accrual
Date specified above or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on the
Interest Payment Dates specified above in each year, commencing March 1,
2006, and at Maturity, at the Interest Rate per annum specified above, until
the principal hereof is paid or duly provided for.  The interest so payable, and paid or duly
provided for, on any Interest Payment Date shall, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date specified above (whether or not a Business Day) next preceding such
Interest Payment Date.  Notwithstanding
the foregoing, interest payable at Maturity shall be paid to the Person to whom
principal shall be paid. Except as otherwise provided in said Indenture, any
such interest not so paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date and may either be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice of which shall be
given to Holders of Securities of this series not less than 15 days prior to
such Special Record Date, or be paid in such other manner as permitted by the
Indenture.

 

A-1

 

Payment of the principal of this Security and interest hereon at
Maturity shall be made upon presentation of this Security at the Corporate
Trust Office of U.S. Bank Trust National Association, in New York, New York or
at such other office or agency as may be designated for such purpose by the
Company from time to time. Payment of interest on this Security (other than
interest at Maturity) shall be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register,
except that if such Person shall be a securities depositary, such payment may
be made by such other means in lieu of check as shall be agreed upon by the
Company, the Trustee and such Person. Payment of the principal of and interest
on this Security, as aforesaid, shall be made in such coin or currency of the
United States of America as at the time of payment shall be legal tender for
the payment of public and private debts.

 

This Security is one of a duly authorized issue of securities of the
Company (herein called the “Securities”), issued and issuable in one or more
series under and equally secured by an Indenture, dated as of October 1,
1993 (such Indenture as originally executed and delivered and as supplemented
or amended from time to time thereafter, together with any constituent instruments
establishing the terms of particular Securities, being herein called the “Indenture”),
between the Company and U.S. Bank Trust National Association (formerly First
Trust of New York, National Association) as successor trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the property mortgaged, pledged and held in trust,
the nature and extent of the security and the respective rights, limitations of
rights, duties and immunities of the Company, the Trustee and the Holders of
the Securities thereunder and of the terms and conditions upon which the
Securities are, and are to be, authenticated and delivered and secured. The
acceptance of this Security shall be deemed to constitute the consent and
agreement by the Holder hereof to all of the terms and provisions of the
Indenture. This Security is one of the series designated above.

 

This Security has been issued pursuant to the requirements of, and as
security for the payment by the Company of its obligations under, that certain
Insurance and Reimbursement Agreement, dated as of August 1, 2005 (the “Insurance
Agreement”), among the Company, the 2005 Series A Trustee (as hereinafter
defined) and MBIA Insurance Corporation (“MBIA”) in connection with the
issuance by MBIA of a financial guaranty insurance policy (the “Policy”)
relating to $129,500,000 in aggregate principal amount of 4.375% Adams County,
Colorado Pollution Control Revenue Refunding Bonds (Public Service Company of
Colorado Project) 2005 Series A (the “2005 Series A Bonds”), issued
by Adams County, Colorado pursuant to a Trust Indenture (the “2005 Series A
Indenture”), dated as of August 1, 2005, between Adams County, Colorado
and U.S. Bank National Association as Trustee (the “2005 Series A Trustee”)
to reimburse MBIA for any payments of principal or interest made by MBIA
pursuant to the Policy with respect to the 2005 Series Bonds.  In connection with the issuance of the 2005 Series A
Bonds, the Company entered into a Financing Agreement, dated as of August 1,
2005, pursuant to which the Company executed and delivered a note to the County
in the amount of the proceeds of the 2005 Series A Bonds (the “2005 Series A
Note”).  The payment of principal of and
interest on the 2005 Series A Note is applied solely to the payment of the
related 2005 Series A Bonds.

 

Any payment by the Company of principal or interest on the 2005 Series A
Note or pursuant to its obligation under the Insurance Agreement to reimburse
MBIA for any payments of principal or interest made by MBIA under the Policy
with respect to the 2005 Series A Bonds shall, to the extent thereof, be
deemed to satisfy and discharge the obligation of the Company, if any, to make
the payment of principal or interest on the Securities of Series No. 16
which is then due; provided, however, if any such payment by the
Company on the 2005 Series A Note or pursuant to its obligations under the
Insurance Agreement to reimburse MBIA for any payments of principal or interest
made by MBIA under the Policy with respect to the 2005 Series A Bonds is
determined to be a preferential transfer and is recovered from the registered
owner of the 2005 Series A Note or from MBIA pursuant to the United States
Bankruptcy

 

A-2

 

Code in accordance with a final,
nonappealable order of a court of competent jurisdiction as a result, then the
obligation of the Company to make such payment of principal or interest on the
2005 Series A Note or pursuant to its obligations under the Insurance
Agreement to reimburse MBIA for any payments of principal or interest made by
MBIA under the Policy with respect to the 2005 Series A Bonds shall no
longer be deemed satisfied and discharged for purposes of the Securities of Series No. 16.

 

The Trustee may conclusively presume that the obligation of the Company
to pay principal and interest on the Securities of Series No. 16 as
the same shall have become due and payable shall have been fully satisfied and
discharged unless and until it shall have received a written notice from the
Holder hereof stating that the principal or interest of this Security has
become due and payable and specifying the amount of funds required to make such
payment.

 

Notwithstanding anything to the contrary contained herein, the
aggregate amount of principal and interest on the Securities of Series No. 16
shall not exceed the aggregate amount of the payments of principal and interest
due on the 2005 Series A Bonds covered by the policy.

 

If any Interest Payment Date or the Stated Maturity shall not be a
Business Day (as hereinafter defined), payment of the amounts due on this
Security on such date may be made on the next succeeding Business Day; and, if
such payment is made or duly provided for on such Business Day, no interest
shall accrue on such amounts for the period from and after such Interest
Payment Date or Stated Maturity, as the case may be, to such Business Day.

 

In the event that any 2005 Series A Bonds are redeemed following a
determination of taxability pursuant to Section 2.02(e)(iii) of the 2005 Series A
Bond Indenture, the Securities of Series No. 16, in a principal
amount equal to the principal amount of 2005 Series A Bonds to be
redeemed, shall be redeemed on the date fixed for redemption of the 2005 Series A
Bonds, at the principal amount thereof plus accrued interest to the redemption
date.

 

In the event that all 2005 Series A Bonds have become immediately
due and payable pursuant to Section 9.02 of the 2005 Series A Bond
Indenture following the occurrence of an Event of Default (as defined in Section 9.01
of the 2005 Series A Bond Indenture), the Securities of Series No. 16
shall thereupon be redeemed at the principal amount thereof plus accrued
interest to the redemption date (the obligation to effect such redemption being
rescinded upon the rescission of such acceleration).

 

  The Holder hereof shall attend
such meeting or meetings of the Holders under the Indenture or, at its option,
deliver its proxy in connection therewith, as relates to matters with respect
to which it is entitled to vote or consent. 
So long as no Event of Default (as defined under the 2005 Series A
Indenture) shall have occurred or be continuing thereunder, either at any such
meeting or meetings, or otherwise when the consent of the Holders under the
Indenture is sought without a meeting, the Holder hereof shall vote or consent
with respect thereto proportionately with the vote or consent of the Holders of
all other Securities of any series or Tranche Outstanding under the Indenture
who are eligible to vote or consent, as indicated in an Officer’s Certificate
delivered to the Holder hereof.

 

If an Event of Default shall occur and be continuing, the principal of
this Security may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

The Indenture permits, with certain exceptions as therein provided, the
Trustee to enter into one or more supplemental indentures for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, the Indenture with the consent of the Holders of not less than a
majority in aggregate principal amount of the Securities of all series then
Outstanding under the Indenture, considered as one class; provided, however,
that if there shall be Securities of more than one

 

A-3

 

series Outstanding under the Indenture and if
a proposed supplemental indenture shall directly affect the rights of the
Holders of Securities of one or more, but less than all, of such series, then
the consent only of the Holders of a majority in aggregate principal amount of
the Outstanding Securities of all series so directly affected, considered as
one class, shall be required; and provided, further, that if the Securities of
any series shall have been issued in more than one Tranche and if the proposed
supplemental indenture shall directly affect the rights of the Holders of
Securities of one or more, but less than all, of such Tranches, then the
consent only of the Holders of a majority in aggregate principal amount of the
Outstanding Securities of all Tranches so directly affected, considered as one
class, shall be required; and provided, further, that the Indenture permits the
Trustee to enter into one or more supplemental indentures for limited purposes
without the consent of any Holders of Securities. The Indenture also contains
provisions permitting the Holders of a majority in principal amount of the
Securities then Outstanding, on behalf of the Holders of all Securities, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver
is made upon this Security.

 

As provided in the Indenture and subject to certain limitations therein
set forth, this Security or any portion of the principal amount hereof will be
deemed to have been paid for all purposes of the Indenture and to be no longer
Outstanding thereunder, and, at the election of the Company, the Company’s
entire indebtedness in respect thereof will be satisfied and discharged, if
there has been irrevocably deposited with the Trustee or any Paying Agent
(other than the Company), in trust, money in an amount which will be sufficient
and/or Eligible Obligations, the principal of and interest on which when due,
without regard to any reinvestment thereof, will provide moneys which, together
with moneys so deposited, will be sufficient, to pay when due the principal of
and interest on this Security when due.

 

This Security is not transferable except to a successor to MBIA
Insurance Corporation under the Insurance Agreement upon delivery to the
Trustee of a Company Request requesting such transfer.  Before any transfer of this Security will be
recognized or given effect by the Company or the Trustee, the Holder shall note
the amounts of all principal prepayments hereon, and shall notify the Company
and the Trustee of the name and address of the transferee and shall afford the
Company and the Trustee the opportunity of verifying the notation as to
prepayment of principal.  By the
acceptance hereof the Holder of this Security and each transferee shall be
deemed to have agreed to indemnify and hold harmless the Company and the
Trustee against all losses, claims, damages or liability arising out of any
failure on the part of the Holder or of any such transferee to comply with the
requirements of the preceding sentence. 
Any such transfer is registrable in the Security Register, upon
surrender of this Security for registration of transfer at the office of U.S.
Bank Trust National Association, in New York, New York or such other office or
agency as may be designated by the Company from time to time, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities
of this series of authorized denominations and of like tenor and aggregate
principal amount, will be issued to the designated transferee or transferees.

 

A-4

 

This Bond has not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in contravention of said Act and is not
transferable except to a successor to MBIA under the Insurance Agreement.

 

No service charge shall be made for any such registration of transfer,
but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith.

 

Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the absolute owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

 

The Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York.

 

As used herein “Business Day” means any day, other than a Saturday or
Sunday, which is not a day on which banking institutions or trust companies in
The City of New York, New York or other city in which is located any office or
agency maintained for the payment of principal or interest on this Security,
are authorized or required by law, regulation or executive order to remain
closed. All other terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.

 

As provided in the Indenture, no recourse shall be had for the payment
of the principal of or interest on any Securities, or any part thereof, or for
any claim based thereon or otherwise in respect thereof, or of the indebtedness
represented thereby, or upon any obligation, covenant or agreement under the
Indenture, against, and no personal liability whatsoever shall attach to, or be
incurred by, any incorporator, shareholder, officer or director, as such, past,
present or future of the Company or of any predecessor or successor corporation
(either directly or through the Company or a predecessor or successor
corporation), whether by virtue of any constitutional provision, statute or rule of
law, or by the enforcement of any assessment or penalty or otherwise; it being
expressly agreed and understood that the Indenture and all the Securities are
solely corporate obligations and that any such personal liability is hereby
expressly waived and released as a condition of, and as part of the
consideration for, the execution of the Indenture and the issuance of the
Securities.

 

Unless the certificate of authentication hereon has been executed by
the Trustee or an Authenticating Agent by manual signature, this Security shall
not be entitled to any benefit under the Indenture or be valid or obligatory
for any purpose.

 

A-5

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed and its corporate seal to be hereunto affixed and attested.

 

	
   

  	
  PUBLIC SERVICE COMPANY OF COLORADO

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  [Vice
  President and Treasurer]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
  [Assistant
  Secretary]

  	
   

  
							

 

CERTIFICATE
OF AUTHENTICATION

 

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

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S. BANK

  	
  OR

  	
  U.S. BANK
  TRUST

  
	
  TRUST
  NATIONAL ASSOCIATION,

  	
   

  	
  NATIONAL
  ASSOCIATION,

  
	
  as Trustee

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Authorized
  Officer

  	
   

  	
   

  	
  as Authenticating Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  
						

 

THE HOLDER OF THIS BOND BY ITS ACCEPTANCE HEREOF
AGREES TO RESTRICTIONS ON TRANSFER, RESTRICTIONS ON VOTING, TO WAIVERS OF
CERTAIN RIGHTS OF EXCHANGE, AND TO INDEMNIFICATION PROVISIONS AS SET FORTH
BELOW.  IN ADDITION, THE BOND REPRESENTED
BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
AND SUCH BOND MAY NOT BE TRANSFERRED WITHOUT COMPLIANCE WITH APPLICABLE
SECURITIES LAWS.

 

THIS SECURITY MAY NOT BE TRANSFERRED OR
EXCHANGED, NOR MAY ANY PURPORTED TRANSFER BE REGISTERED, EXCEPT TO A
SUCCESSOR TO MBIA INSURANCE CORPORATION UNDER THE INSURANCE AGREEMENT REFERRED
TO HEREIN.

 

THIS SECURITY IS SUBJECT TO CERTAIN VOTING
RESTRICTIONS SET FORTH HEREIN.

 

 

A-6

 

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto

 

 

[please insert social security or other identifying number of assignee]

 

 

 

[please print or typewrite name and address of assignee]

 

 

 

the within Security of PUBLIC SERVICE COMPANY
OF COLORADO and does hereby irrevocably constitute and appoint                                           ,
Attorney, to transfer said Security on the books of the within-mentioned
Company, with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  

 

 

Notice: The
signature to this assignment must correspond with the name as written upon the
face of the Security in every particular without alteration or enlargement or
any change whatsoever.

 

A-7

 

SCHEDULE A

 

SUPPLEMENTAL
INDENTURES

 

	
  Date of

  Supplemental

  Indenture

  	
   

  	
  Series of Bonds

  	
   

  	
  Principal

  Amount Issued

  	
   

  	
  Principal

  Amount

  Outstanding

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 1, 1993

  	
   

  	
  Series No. 1

  	
   

  	
  $

  	
  134,500,000

  	
   

  	
  $

  	
  134,500,000

  	
   

  
	
  January 1, 1994

  	
   

  	
  Series No. 2due
  2001

  	
   

  	
  $

  	
  102,667,000 

  	
   

  	
  None

  	
   

  
	
   

  	
   

  	
  and

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Series No. 2 due
  2024

  	
   

  	
  $

  	
  110,000,000

  	
   

  	
  None

  	
   

  
	
  September 2, 1994
  (Appointment of Successor
  Trustee)

  	
   

  	
  None

  	
   

  	
  None

  	
   

  	
  None

  	
   

  
	
  May 1, 1996

  	
   

  	
  Series No. 3

  	
   

  	
  $

  	
  125,000,000

  	
   

  	
  $

  	
  125,000,000

  	
   

  
	
  November 1, 1996

  	
   

  	
  Series No. 4

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  $

  	
  100,000,000

  	
   

  
	
  February 1, 1997

  	
   

  	
  Series No. 5

  	
   

  	
  $

  	
  150,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 1998

  	
   

  	
  Series No. 6

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  None

  	
   

  
	
  August 15, 2002

  	
   

  	
  Series No. 7

  	
   

  	
  $

  	
  48,750,000

  	
   

  	
  $

  	
  48,750,000

  	
   

  
	
  September 1, 2002

  	
   

  	
  Series No. 8

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
  None

  	
   

  
	
  September 15, 2002

  	
   

  	
  Series No. 9

  	
   

  	
  $

  	
  530,000,000

  	
   

  	
  None

  	
   

  
	
  April 1, 2003

  	
   

  	
  Series No. 10

  	
   

  	
  $

  	
  600,000,000

  	
   

  	
  $

  	
  600,000,000

  	
   

  
	
  March 1, 2003

  	
   

  	
  Series No. 11

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  None

  	
   

  
	
  September 15, 2003

  	
   

  	
  Series No. 12

  	
   

  	
  $

  	
  250,000,000

  	
   

  	
  $

  	
  250,000,000

  	
   

  
	
  May 1, 2003

  	
   

  	
  Series No. 13

  	
   

  	
  $

  	
  350,000,000

  	
   

  	
  None

  	
   

  
	
  September 1, 2003

  	
   

  	
  Series No. 14

  	
   

  	
  $

  	
  300,000,000

  	
   

  	
  $

  	
  300,000,000

  	
   

  
	
  September 1, 2003

  	
   

  	
  Series No. 15

  	
   

  	
  $

  	
  275,000,000

  	
   

  	
  $

  	
  275,000,000

  	
   

  

 

B-1

 

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;

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 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” 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:

 

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:

 

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;

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.

 

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:

 

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.

 

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 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:

 

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:

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;

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;

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;

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;

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;

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;

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;

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;

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 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.

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