PROJC01841 ‎(2)‎

• Contract/PO #: C150270
• Contractor Name: Headgate 135 Lateral, Inc.
• Contract Type: Loan
• Water District: 0
• County: Mesa
• Loan Projects - Doc Type: Feasibility Study

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prior to hiring a contractor to commence work on the projects, now planned for the fall of
2008, when water is out of the ditch.

3. The overall irrigation and drainage projects consist of over 6300 feet of pipe currently
estimated to cost more than $170,000 for installation. The parti.es agree and understand
that this agreement addresses only a portion of the project costs, and that further financial
assistance from the NRCS, low-interest loans from the Colorado Water Conservation
Board or similar entities and financial commitments from other cost-sharing parties will
be necessary before commencing the irrigation and drainage projects. Therefore, the
parties expressly agree that notwithstanding any other paragraph to the contrary, should
the financial commitments of the NRCS, cost-sharing partners and/or lenders fail to
provide sufficient funds to commence the projects, then all financial payments received
hereunder shall be returned to their source and this agre:ement shall be terminated.

4. Once work is commenced on the irrigation pipe project, the parties shall be financially
responsible for the commitments made herein. The parties may pay their respective
fmancial obligations prior to completion of the project, but the full balance of any party
shall be paid no later than 30 days following the completion of the project. Should any
amount remain unpaid past 30 days following the completion of the project, said party
shall additionally pay interest at the rate of 1.5 percent per 1110nth on the balance until
fully paid, together with the cost of reasonable attorney' fees for collection.

5. This agreement is the final agreement of the parties, and it can only be amended by a
document executed by the parties hereto. The parties however, acknowledge that a
communication of future 2008 NRCS projections is contemplated by the agreement.
Headgate 135 Lateral, Inc. agrees to transmit a copy oftht: 2008 NRCS projections to the
3P Development, LLC prior to hiring a contra(:tor and 3P Development, LLC agrees to
respond to Headgate 135 Lateral, Inc. with notice to proceed with construction on the
irrigation project in writing within 5 business days following receipt of the 2008 NRCS
projections. A copy of the 2008 NRC projections, transmission and receipt of the same
are contemplated as future docunlents that will be part of this agreement.

6. The parties designate the following individuals to act f(Jr the parties in furtherance of
this agreement. Communication under this agreement will be d.eemed to have occurred
when received, or following three days after mailing to the parties' designees at the
addresses below:

3P Development, LLC
Pam Pine, Manager
0038 South Oak Street
Glenwood Springs, CO 81601
Telephone: [phone]
Fax: [phone]

Headgate 135 Lateral, Inc.
Gordon Barker, President

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