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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />FINANCIAL PLAN <br /> <br />The GMSLCC is applying for a $ 200,000 loan (90% of the estimated cost) at an interest rate of <br />2.75% for an agricultural loan with a 30 year term, The yearly repayment for the loan will be <br />approximately $ 9,877 per year for a total loan cost of $296,307. Yearly funds required of <br />GMSLCC for the first 10 years would be $10,865 to account for the reserve fund (Certificate of <br />Deposit) required by the CWCB which is equal to one yearly payment placed in reserve over a 10 <br />year period of time. The reserve can be used to pay the final payment in the year 2033 and does <br />not change the overall total cost of the project. <br /> <br />The total project cost is estimated at approximately $ 223,000 and it is expected that GMSLCC <br />will be providing all funds in excess of the $200,000 loan request. The funds required by both <br />the CWCB and GMSLCC over the life of the project is shown in Table 3. <br /> <br />TABLE 3 <br />FUND REQUIREMENT SCHEDULE <br /> <br />YEAR GMSLCC CWCB 90% LOAN <br /> P ARTICIPA TION/PMT'S <br />2003 $ 23,000 $ 200,000 <br />2004 - 2013 $ 10,865 <br />2014 - 2033 $ 9,877 <br /> <br />CREDIT WORTHINESS <br /> <br />The financial condition of the company is solid at the present time. The GMSLCC has an existing <br />loan in amount of $300,000 with Community First Bank of Cheyenne, Wyoming. Revenue for <br />operations and payment ofIoans is derived from profits on the operation of the ranch. During 2002 <br />the company met it debt service and all other expenditures and had a net revenue $141,668 from <br />the ranch operation. The company has no other long term debt or outstanding obligations. The <br />additional $10,867 per year is less than 10% of the company profits from 2002 and would not be <br />expected to create a hardship for the company. <br /> <br />AL TERNA TIVE FINANCING CONSIDERATIONS <br /> <br />The Company has investigated alternative financing with Community First Bank, which holds the <br />mortgage on the ranch property, The bank has indicated they would consider a loan for the <br />Company at a variable interest rate starting at 6 % interest with renewal of the loan each year. <br />This would increase the loan payments significantly to the company with interest payments alone <br />being over $12,000 per year. <br /> <br />Giffin Reservoir-Feasibility Study <br /> <br />Page 6 <br />