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LOAN CONTRACT Red Mesa Ward Reservoir and Ditch Co. Feasibility Study WHEREAS, the Borrower is a duly constituted non-profit corporation formed under Section 7-20-101 et seq. C.R.S., in the State of Colorado; and WHEREAS, the Colorado Water Conservation Board approved, at their March 9, 1994 meeting, a loan to the Borrower in a maximum amount of Fifteen Thousand Dollars ($15,000) to conduct said Feasibility Study, and provided that said loan for the Feasibility Study may be rolled into the Construction Loan for The Project, or forgiven altogether if it is determined that The Project is not feasible; and WHEREAS, the Colorado Water Conservation Board approved said loan to the Borrower with the knowledge that a loan interest rate of 2 or 3 percent per annum, and a term of 40 years, may be required for The Project to be financially feasible for the Borrower. NOW THEREFORE, it is hereby agreed that: That the captions and headings contained in th~' on t are for convenience and reference only and shall not be construed so as to de or' it the terms or provisions contracted here in. 1. (Borrower's Consultant to Prepare FeS:'bility Report): The Borrower shall have a Feasibility Report prepared on The Project. te has approved a proposal for The Project Feasibility Study prepared by Borrower's co ulting engineer, Harris Water Engineering, inc. (the Consultant). The Feasibility Report shall contain conclusions stating whether The Project is feasible, and under ecific loan fmancing terms The Project is feasible. The Cost Estimate to complete Feasil) ity Study, as included in this proposal, is $20,000. This proposal is attached hereto A dix A and made a part of this contract. 2. (Final Report of the Feas' ility Study is due in one year): Three (3) copies of the final report of the Feasibility S prepared in compliance with the Consultant's proposal, as set forth in Append' A I be furnished to the State not later than one (1) year after the date of this contract, ch time is extended by mutual agreement of the parties hereto in writing. 3. (The State will Loan money to do the Feasibility Study): The State shall loan the Borrower monies to pay for the services of the Borrower's Consultant to prepare the final report of the Feasibility Study. The State shall loan to the Borrower the maximum sum of Fifteen Thousand Dollars ($15,000) in the manner following: 3a. (Borrower submits statements of costs): Throughout the time of preparation of the Feasibility Study, the Borrower shall prepare, with the assistance of the Consultant referred to in paragraph 1. above, statements of the costs of the Feasibility Study, and shall forward said statements to the State. Said statements shall indicate task(s) upon Page 2 of 9 Pages