2012-02-28_REVISION - M1980244 (79)

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AMENDMENT TO AGREEMENTS FOR WATER PL CRIPPLE CREEK & VICTOR GOLD MINING COMPANY. whose address is 100 N. 3"' Street, Victor, Colorado 80860 (hereinafter "CC &V "): and THE CITY OF VICTOR, whose address is 500 Victor Avenue, Post Office Box 86. Victor, Colorado 80860 (hereinafter "The City ") agree as follows: WHEREAS, there are several applications and agreements extant between the parties with regards to the sale and purchase of water, to include - Application for Use of Water dated 14 June 1999 (7 pages) Amendment dated June 8, 2006 (3 pages) Operating and Maintenance Agreement dated August I, 1999 (7 pages plus exhibits) - Supplemental Water Supply Agreement dated November 20, 2003 (signed on or about February 17, 2004) regarding the purchase of water from the City of Cripple Creek, and Amendments and Additions to Agreements for Water dated TBS (TBD pages): WHEREAS, the City of Cripple Creek (hereinafter "Cripple Creek ") has previously entered into an agreement with the City wherein Cripple Creek provides the City with up to 172 acre feet of water, primarily by and through a pipeline and well field located in Gillette (the "Victor Agreement "), and the parties have subsequently amended the Victor Agreement; and WHEREAS, CC &V has a requirement for additional water supplies for its operation of the Cresson Mine and Cripple Creek is the owner certain of water rights and water facilities that will enable it to sell and deliver water to CC &V for use at the Cresson Mine, and CC &V and Cripple Creek have entered into an agreement for the purchase of additional water. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, The City and CC &V agree as follows: 1. Acre Foot Charge. The price for all water delivered by Victor to CC &V under all of the agreements in CY 2010. after the August 6, 2010 Third Amendment to Water Purchase Agreement between the City and Cripple Creek, shall be $700.00 per acre foot. Payment annually for the 172 acre feet of water under the Victor Agreement shall be made in twelve (12) equal monthly payments. regardless of delivery schedule. For all other water delivered to CC &V, the City will provide CC &V with a monthly invoice and payment shall be due and payable 30 days after the date of the invoice. The base rate, starting with $700 in CY 2010, shall be adjusted upward by 3.5% each year to reflect any increase in the fair market value of the water and costs to provide the legal and physical supply of water. In addition to the adjusted 1