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L.G. EVERIST, INC. <br />December 30, 2009 <br />Mr. Garrett Varra <br />Varra Companies <br />8120 Gage Street <br />Frederick, CO 80516 <br />CORPORATE OFFICE <br />300 S. PHILLIPS AVE. • SUITE 200 <br />P.O. BOX 5829 <br />SIOUX FALLS, SD 57117-5829 <br />PHONE 605-334-5000 <br />FAX 605-334.3656 <br />K MOUNTAIN DIVISION <br />7321 E. 88TH AVENUE • SUITE 200 <br />HENDERSON, COLORADO 80640 <br />303-287-9606 <br />FAX 303-289-1348 <br />RE: Letter Agreement for Winter Augmentation Purchase <br />Dear Garrett, <br />This letter serves to finalize our previously discussed agreement for L.G. Everist, Inc. <br />(LGE) to lease fully consumable winter augmentation water for the purpose of fulfilling LGE's <br />Substitute Water Supply Plans from Varra Companies (Varra). Conditions of the agreement are <br />summarized below: <br />• If approved by the State, Varra agrees to release water from their "112 Pit" <br />located at the southwest corner of Weld County Rd 24.5 and 9.75 from where the <br />water will flow directly north and discharge into the St. Vrain Creek. <br />• Varra agrees to release the specified water volume and release it during the time <br />needed as found on the attached Winter Augmentation Schedule. Varra is <br />- usually allowed to aggregate its winter releases and will seek the State's approval <br />to also aggregate these releases for LGE. <br />• Varra agrees to measure the water release using a saddle weir located at the <br />pond's discharge. - . <br />• The agreement term will be for the calendar years 2010 and 2011. <br />• In return for Varra's services, LGE will prepay Varra $75 per Acre Foot (AF) of <br />water released according to the Winter Augmentation Schedule AF totaling <br />148.85 AF for 2010 and 118.15 AF for 2011. The total prepayment amount for <br />2010 equals $11,163.75. <br />If you are in agreement with these conditions as set forth, please acknowledge with a <br />qualified company representative's signature below and return to me at: <br />Matthew Noteboom, P.E. <br />L.G. Everist, Inc. <br />7321 E. 88`h Ave Suite 200 <br />Henderson, CO 80640 <br />Sincere <br />L.G. Everist, °Inc. <br />Matthew Noteboom, P.E. <br />Sales Director/Project Engineer