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EXHIBIT A <br />PROMISSORY NOTE <br />FUEL TANK REPLACEMENT PROJECT <br />February 5, 2008 <br />For value received, the City of Colton General Fund agrees to repay the City of <br />Colton Internal Service Fund from funds acquired during a five year period from a <br />fuel surcharge the principal sum of TWO HUNDRED THOUSAND DOLLARS <br />($200,000) with interest thereon from the date of February 5, 2008 at the current <br />LAW rate per annum, principal and interest payable annually on December 1 and <br />due in full by December 1, 2013, The City of Colton General Fund will utilize the <br />funds in accordance with all legal requirements and only for the construction <br />phase of the Fuel Tank Replacement Project, In the event that insufficient <br />revenues are available to make annual payment, interest shall accrue and be <br />capitalized. The term of the Note shall be five (5) years, unless consent is <br />obtained by Council action to extend the term of the loan. <br />Each payment under this Note shall be credited first to interest due and the <br />remainder to principal; and interest shall thereupon cease upon the principal so <br />credited, Any interest not paid when due shall accrue and be added to the <br />outstanding principal balance, In event of default in payment of any amount as <br />herein provided, then the entire amount shall become due at the option of the <br />City of Colton. Principal and interest shall be payable in lawful money of the <br />United States at Colton, California, Demand, presentment for payment, protest <br />and notice of protest are hereby waived. <br />CITY OF COLTON <br />By; <br />KELLY J, CHASTAIN, MAYOR <br />