C150205 Feasibility Study

• Contract/PO #: C150205
• Contractor Name: Veits Pipeline Company
• Contract Type: Loan
• Water District: 34
• County: Montezuma
• Loan Projects - Doc Type: Feasibility Study

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appurtenances and improvements defined in the Contract, which is
attached hereto as Exhibit A and made a part of this Agreement.

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.

3, Membership Approval- The Company agrees to seek approval by the
Membership of the Additionsllmprovements to the Ditch proposed by the
Funding Members, including the Contract, the Loan and this Funding
Agreement.

4, If the Membership approves the Additions/Improvements to the Ditch
including the Contract and the Loan, the Funding Members hereby agree
to pay all of the costs incurred by the Company arising from the
Contract, including any cost overruns, and from the Loan.

5. The Company shall set the annual date for payment by the Funding
Members and send an invoice to each 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).

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
amount needed for the annual payment(s) that were not made to the
Company. The Funding Members and Company intend that the CWCB
is a third-party beneficiary of this paragraph.

7, The Company agrees to receive prepayments of principal from any
Funding Member at any time and credit such amounts immediately
against the Member's obligation. A Funding Member ceases to be a
Funding Member upon prepayment of his/her total remaining share of
the Loan balance.