C150200 Feasibility Study

• Contract/PO #: C150200
• Contractor Name: Sheek Ditch Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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Now, therefore, in consideration of the mutual covenants contained herein, the
Company and the below signed Funding Members agree as follows:

1. The Additions/Improvements to the Ditch- The Additions/Improvements
proposed for the Ditch are the installation of the pipeline and related
appurtenances and improvements defined in the Contract, which is
attached hereto as Exhibit A and made a part of this Agreement,
including the details of the proposed work, the estimated cost of the
work, the method for sharing the cost, including any overruns that may
occur, and the proposed schedule for conduct of the work.

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2. The Loan- The Loan from CWCB is defined by the feasibility study, the
loan application and the Loan Contract, which includes the Promissory
Note, the Resolutions, the Security Agreement, the Deed of Trust and
the loan commitment; all attached hereto as Exhibit B and made a part
of this Agreement.

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3. Membership Approval- The Company agrees to seek approval by the
Membership of the Additionsllmprovements to the Ditch p.r,?~ed by the
Funding Members, including the Contract, the Loan a...n. d.j,,~> (~unding
Agreement. ...<:::p. . ~
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4. If the Membership approves the Additions/lmw" e~~' to the Ditch
including the Contract and the Loan, the",EJ:Ind ~~rs hereby agree
to pay all of the costs incurred by the, : ' n I~ from the
Contract, including any cost overr n~ e Loan.

5. The Company shall set the a~~ ~e payment by the Funding
Members and send an invoice t ". Member thirty days prior to the
due date. The Funding Members agree to pay the first annual
installment to the Company at the time of the first draw on the Loan,
which the Company shall use to establish a payment reserve account for
repayment of the Loan. The Funding Members further Agree to pay a
second annual payment into the payment reserve account over the first
three years of the Loan (to be surcharged one-third of an annual
payment each year).

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6. The Funding Members agree that if any Funding Member fails to make
the annual payment required under Sections 4 and 5 herein, the
remaining Funding Members will each make an additional pro-rated
payment to the Company that totals the amount owed by the defaulting
Funding Member(s). The additional payment shall be due ten working
days from the Funding Members' receipt of notice from the Company of
the additional amount due. In the notice, the Company shall identify the
amount each Funding Member needs to pay as his or her share of the