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HomeMy WebLinkAboutresolution.council.004-01 RESOLUTION NO. ~ Series of 2001 A RESOLUTION OF THE CITY OF ASPEN, COLORADO, AUTHORIZING THE MAYOR TO EXECUTE, ON BEHALF OF THE CITY OF ASPEN, AN AMENDMENT TO A GRANT AGREEMENT FROM THE STATE BOARD OF THE GREATR OUTDOORS COLORADO TRUST FUND ("GOCO"). WHEREAS, there has been submitted to the City Council a proposed First Amendment to the Legacy Grant for the Roaring Fork Raikoad Legacy Project from the State Board of the Greater Outdoors Colorado Trust Fund; and WHEREAS, after due deliberation and consideration the City Council has determined that it is in the best interest of the City of Aspen to approve said first amendment. NOW, WHEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN. COLORADO, that the Mayor is hereby authorized to execute on behalf of the City of Aspen the First Amendment to the Legacy Grant Agreement for the Roaring Fork Railroad Legacy Project appended hereto as Exhibit A. /Rac el E. Richards, ~'layor '~ I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, C°l°rad°' at a meeting hel~/~/gd--~t~ F ,2001 thry · ~fi, City//~led O'PW-01/05/200J.-G: x ~ohn\word re8os\goco-J-egacy-grang.doc ROBERT M. NOONE, P.C. ATTORNEYS AT LAW THE TAM2MR~CK BUILDRqG. 1001 GRAND AVENUE. SrfflTE 207 P.O. DRAWER 39, GLENWOOD SPRINGS. COLORADO 81602 Robert M. Noone Jason M. Keith Telephone: 970-945-4500 Telefax: 970-945-5570 E-Marl: rm~noonelaw.com Of Counsel James II. Delman January. 3. 2001 VIA E-Mail John Worcester Aspen City Attorney 130 S. Galena Street Aspen, CO 81611 Re: RFRHA/GOCO Amended Legacy Grant Dear John: I have sent you by courier five sets 0fthe First Amendment to the Legacy Grant Agreemem for the Roaring Fork Railroad Legacy Project for Rachel R/chards' signature on behalf of the City The Amendment reflects the determination by GOCO that although the majority ofthe trail and wildlife values of the project remain, the open space values are diminished under the RFRHA Comprehensive Plan by virtue of the reduction of the area to be covered by the conservation restrictions from 466 acres to 245.5 acres. In accordance with the AVLT conservation easement and Legacy Grant language, because .GOCO does not approve the Comprehensive Plan, the conservation easement may not be amended to include the terms of the Plan. GOCO's rejection of the Comprehensive Plan triggered the termination and reimbursement procedures set forth in Paragraph 27 of the June 30, 1997 Deed of Conservation Easement. Attached is the March 18, 2000 Letter of Intent between GOCO and RFR.HA which outlines the agreed procedure for effecting the termination of the conservation easement, the creation of restrictive covenants whereby RFRHA agrees to assume sole responsibility for protection of the conservation and trail values (outside Pitkin County) on the corridor, and the amendment of the Legacy Grant to reduce the grant award from $2 million to $1.5 million. All elements of the Letter of Intent are being accomplished by RFRHA and GOCO m consultation and cooperation with the Aspen Valley Land Trust, subject, of course, to the execution of the Amended Legacy Grant Agreement by the original principals, Pitldn County, the City of Aspen and the City of Glenwood Springs, and Pitkin County as agent of the constituent RFRHA entities. Please review the Amendment and call me if you need any further information. Very truly yours, ROBERT M. NOONE, P.C. By: Robert M, Noone RMN/jrs w/E-mall Attachment cc: Tom Newland Dorothea Farris ROBERT M. NOONE, P.C. ATTORNEYS AT LAW THE TAMARACK BUILDING, 1001 GRAND AVENUE, SUITE 207 P.O. DRAWER 39, GLENWOOD SPRINGS, COLORADO 81602 Robert M. Noone Karl J. Hanlon Of Counsel Telephone: 970-945-4500 James H. Delman Telefax: 970-945-5570 E-Mail: bo bnoo ne~noonelaw, com March 18. 2000 Mr. Will Shafroth Executive Director State Board of the Great Outdoors Colorado Trust Fund Suite 900 303 East 17~ Avenue Denver, CO 80203 Re: Letter of Intent Termination of Conservanon and Trail Easement Assumption of Responsibility for Conservation and Trail Obligations by the Roaring Fork Railroad Holding Authority Dear Mr. Shafroth: The purpose of this Letter of Intent is to summarize our discussions to date regarding our mutual interest in resolving issues relating to the protection of the conservation and recreation/trail values on the Roaring Fork Railroad Holding Authority's["RFRHA") rail corridor. In light of our recent discussions. I want to confirm that the State Board of the Great Outdoors Colorado TrustFund (the"Board"'j anticipates' that it will withdraw funding of the second million dollars of the June 30, 1997 Legacy Project Grant Agreement with RFRHA("1997 Legacy Grant"), which was originally awarded, in pan, to assist RFRHA in the purchase of the rail corridor and to insure the protection of the corridor's conservation values as perceived at the time of the purchase. The Board's expected decision is based, in pan, upon its determination that the Comprehensive Plan for the future use of the rail corridor changes the Board's original expectations regarding the scope and characteristics of the conservation values of the comdor. As we have discussed, this anticipated action by the Board would trigger the termination and reimbursement procedures set forth in Paragraph 27 of the June 30, 1997 Deed of Conservation 3-18-2000 RFRHA/GOCO Letter of Intent Page 1 of 5 Easement and Deed of Trail Easement by and between RFRHA, Park Trust. Ltd., d/b/a Aspen Valley Land Trust ("AVLT"), and the Board of Coumy Commissioners of Pitkin County, Colorado (the "Conservation Easement"). Notwithstanding the expected termination of the Conservation Easement and the payback of the first one million dollars plus interest previously disbursed by the Board, both the Board and RFRHA recognize that the rail corridor would continue to possess certain conservation values and recreational/trail values. It is also generally agreed that those remainmg values, although different from those contemplated by the Board at the time of purchase, are deserving of Board funding in consideration for a formal commiunent by RFRHA that ~t will assume continuing responsibility for their protection following termination of the Conservation Easement. Recognizing the mutual goals of implementing the termination provisions of Paragraph 27 of the Conservation Easement and of insuring the continued protection of the conservation and recreation/trails values of the rail corridor, the following is our understanding of the steps now to be taken by RFRHA and the Board. It is anticipated that. if this Letter of Intent is acceptable to the Board as evidenced by your signature below, we will negotiate with you the definitive terms of the documents and agreements necessary to accomplish the transactions contemplated. This Letter of Intent shall be specifically contingent upon the following terms and conditions. as well as such other terms and conditions as RFRHA and the Board shall negotiate. The proposed terms and conditions of this Letter of Intent and the actions to be taken by RFRHA and the Board are as follows: l. Repayment of Initial One Million Dollars Plus Interest There shall be placed in escrow on behaifofRFRHA an amount equal to the initial $1 million granted by the Board under the 1997 Legacy Grant, plus interest on such sum at the rate earned by the Board's funds invested by the Treasurer of the State of Colorado from the date of funding. The escrow funds shall be disbursed to the Board upon fulfillment of the terms and conditions of escrow instructions ro be negotiated, but which shall include the following requirements: (1) Withdrawal of 1997 Legacy Proiect Grant Funding Disbursement from escrow to the Board of the initial $1 million plus interest would be connngent upon the Board giving notice m RFRHA of its disapproval of the Comprehensive Plan and its withdrawal of the funding of the second million dollars in accordance with Section 7 of Article VI of the 1997 Legacy Grant. (2) RFRHA Agreement to Protect Conservation and Trail Values. Disbursement from escrowto the Board of the initial $1 million plus interest would also be 3-18-2000 RFRHA/GOCO Letter of Intent Page 2 of 5 contingent upon the successful negotiation and execution of an Agreement pursuant to which RFRHA would assume responsibility for the protection and enforcement of the conservation values on identifi'ed segments of the corridor and for the trail obligations outside of Pitkin County. The Agreement would provide: (I) Binding Effect of Agreement. RFRHA's obligations would be binding upon its successors and assigns and deemed a covenant running with the land. (2) Right of Board to Monitor Performance Under Agreement. The Board would have the right to monitor RFRHA's compliance and RFP, HA would be required to provide regular reports to the Board documenting activities on the corridor affecting the conservation and trail obligations. (3) Remedies for Breach of Agreement. The Board and RFRHA would have the right to remedy any breach of the Agreement by the other through an action for injunctive or other equitable relief and/or damages. (4) Tennination and Extinguishment of Agreement. If circumstances arise in the future such as render the purposes of the Agreement impossible to accomplish, the Agreement can only be terminated and extinguished, whether in whole or in part, by judicial proceedings in a court of competent jurisdiction. If the Agreement is terminated and extinguished in pan, it shall remain valid as to the portion not determined to be terminated and extinguished. (3) Amended Legacy Grant Aereement. Disbursement from escrow to the Board of the initial $1 million plus interest would also be contingent upon the successful negotiation and execution of an Amended Legacy Grant Agreement between the Board and RFRHA providing for the Board's funding of an amended grant of $1.5 million, plus the interest accrued on the initial $1 million through the date of disbursement from escrow. The Amended Legacy Grant Agreement would provide for funding in recognition of the remaining conservation and trail values of the corridor and in consideration for the RFRHMBoard agreement described in Paragraph I. Co), above. (4) Termination of Conservation Easement. Disbursemem would also be contingent upon the execution and recording of a formal document 3-18-2000 RFRHA/GOCO Letter of Intent Page 3 of 5 terminating the Conservation Easemem, either in the form of a disclaimer of interest in the Conservation Easement by AVLT or, in the alternative, the recording of a formal judicial order extinguishing the Conservation Easemem. 2. Fees and Expenses, The parties shall each be responsible for and bear all of their own costs and expenses (including attorneys' fees or consultant's fees) incurred in connection with the transactions contemplated by this Letter of Intent. 3. Intent. This Letter of Intent merely constitutes a statement of the mutual intentions of the parties and does not contain all matters upon which agreement must be reached for the transactions contemplated in tiffs Letter of Intent to be accomplished and therefore does not constitute a binding commitment with respect to any transaction contemplated in this Letter of Intent by either party. This Letter of Intent may not be relied upon by either party as a binding contract. and may not be relied upon by either party as the basis for a contract by estoppel or otherwise, but rather evidences the parties' non-binding expression of good faith intention or endeavor, without obligations, to negotiate the agreements and transactions contemplated by this Letter of Intent. A binding commitment with respect to the proposed transactions contemplated by this Letter of Intent will result from execution of any such agreement, subject to the conditions expressed therein. 4. Termination. This Letter of Intern may be terminated: (a) By mutual written consent of RFRHA and the Board; or (b) In the absence of any written extension agreement, upon written notice of either party if the transactions contemplated by this Letter of Intern are not completed by December 31, 2000; or (c) By either parry, if it determines in as discretion that one or more of the transactions contemplated by this Letter of Iment cannot be satisfied within thetime provided. Upon termination of this Letter of Intent, the parties shall have no further obligations hereunder. 5. Other Provisions. (a) This Letter of Intent may be executed in two or more counterparts, each of which shall be deemed to be an onginal, but all of which shall constitute one and the same agreement. (b) This Letter of Intent shall be governed by the laws of the State of Colorado. 3-18-2000 RFRHA/GOCO Letter of Intent Page 4 of 5 (c) Each party acknowledges that it has been represented by counsel in connection with this Letter of Intent and the transactions contemplated by this Letter of Intent. Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Letter of Intent against the party that drafted this Letter of Intent has no application and is expressly waived. (d) This Letter of Intent embodies the entire agreement and understanding of the parties and supercedes all prior agreements and understandings with respect to the subject matter of this Letter of Imem. If you are agreeable to proceeding on this basis, please sign and date this letter in the space provided below and return a signed copy to me. ROARING FORK RAH ,ROAD HOLDING AUTHORITY By: Dorothea Fards, Chair THE FOREGOING TERMS AND CONDITIONS ARE ACCEPTABLE, STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND Date: March ,2000, By:. Will Shafroth, Executive Director 3-18-2000 RFRHA/GOCO Letter of lntent Page 5 of 5 Chris Lacroix, 11:52 AM 01/03/2001 -0700, Re: Allocation of Condemnation Proceeds Page 1 of 2 From: "Chris Lacroix" <clacroix@gadieldhecht.com> To: "Jo. hn Worcester" <johnw@ci.aspen.co.us> Cc: <ctreeman@garfieldhecht.com> Subject: Re: Allocation of Condemnation Proceeds Date: Wed, 3 Jan 2001 11:52:30 -0700 X-Mailer: Microsoft Outlook Express 5.00.2919,6700 ohn: Id~dnt~ntendtog~veyouthe~mpressonthatalloftherentwasprepaid~so Ithinkl ' odginal message that "virtually all" of the rent was prepaid and that there was no a~at'ement A~r~?nm tYo m reading of the lease, MCC has the right to use the property until May 7 2092 R"-* ;i .... i2 ...... _.g, Y g emem to assume the c;~ty s ochgabons to the Zolme Foundation under a promissory note in the amount of $1,075,000.00 dated August 10, 1987. At commencement of the lease, MCC made a payment of $741,250.00 to the City, representing all payments then made by the City to the Zoline Foundation Going forward, MCC is required to make payments to the City n amounts equal to the future payments due the City to the Zoline Foundat on under the note, until the note is caid in full. According to the schedule of payments attached to the lease, most of those payments have been made and there are only 2 payments remaining until the note is fully paid MCC is required to pay $107.500.00 on August 10. 2001 and another $107 500.00 on August 10 2002. --- Original Message From: John Worcester To: Chds Lacroix Sent: Wednesday, January 03, 2001 11:05 AM Subject: Re: Allocation of Condemnation Proceeds Chris: Got your message this morning and am assuming you are calling about this e-m,a?l. I have asked our Finance Dept. and City Manager to look at your proposal. They haven t responded yet, but I will get on them today. I have one question, however: When you say that the rent is prepaid, what do you mean? I was under the impression that MCC was paying rent. At 01:01 PM 12/19/2000 -0700, you wrote: John: As discussec. I have looked into the issue of allocating the $146.276.00 condemnation proceeds between the City and MCC. As you know. MCC has a lease for the premises to be condemned which expires on May 7. 2092. I did not find any cases directiy on point, but according to a treatise on eminent domain a few things seem clear. First, it is clear that the parties are free to apportion the proceeds in any manner they wish. Second, it appears that the landlord is entitled to a significant portion (or att) of the proceeds where the lease terminates or where there is an abatement of rent as a result of the condemnation. Where the lease does not terminate and there is no abatement of rent (as is the case here), it seems that the parties' respective interests in the proceeds can be determined by using a present value analysis. In the instant case MCC has a long-term ease with no abatement of rent (in fact, virtually all of the rent is prepa d). Therefore, the proper analysis would seem to be to take the 3resent value of the dght to receive $146.276.00 on May 7, 2092. I will fax you some examples using different interest rates for the calculation. Commencing January 1, 2001. at 6% interest the present value is $713.57. At 12% interest the amount decreases to $4.66. Please give me or Andy a call with your thoughts and let me know if you have any comments or questions. Thanks. Chris John P. Worcester City Attorney Ph: (970) 920-5055 Printed for John Worcester <johnw~ci.aspen.co.us> 01/03,2001 Chris Lacroix, 11:52 AM 01/03/2001 -0700, Re: Allocation of Condemnation Proceeds Page 2 of 2 Fax: (970) 920-5119 Printed for John Worcester <johnw~ci.aspen.co.us> 01/03/2001 FIRST AMENDMENT TO THE LEGACY GRANT AGREEMENT FOR THE ROARING FORK RAILROAD LEGACY PROJECT THIS FIRST AMENDMENT TO THE LEGACY GRANT AGREEMENT FOR THE ROARING FORK RAILROAD LEGACY PROJECT (the "Amendment") is made and entered into effective as of the 3~d day of January, 2001, by and between the State Board of the Great Outdoors Colorado Trust Fund fthe "Board"; and all of the voting members of the Roaring Fork Railroad Holding Authority (collectively "Grantee"). with reference to the following recitals: RECITALS: A. The parties executed the Legacy Grant Agreement (the "Grant Agree- ment% for the Roaring Fork Legacy Project (the "Project'2 dated June 30. 1997. B. The Grant Agreement provided for an award of funding by the Board m an amount up to Two Million Dollars ($2,000.000~ (the "Grant") to preserve the open space, park. trail, and wildlife values of the Roaring Fork Railroad Corridor the "Corridor"). The Board provided One Million Dollars $1,000.000) at the closing of the Grant Agreement and withheld the rest of the funding, One Million Dollars ($1,000,000L until the completion and approval of the Comprehensive Plan (the "Plan") as required by the Grant Agreement. C. Pursuant to the Grant Agreement, Grantee placed a Conservation Easement on the Corridor dated June 30, 1997, which included a provision to amend the Conservation Easement to include the Plan. if the Plan was approved by Grantee. the Board. and the Colorado Department of Transportation subsequent m its completion. D. The Board and Grantee foresaw that upon completion of the Plan, Grantee and/or the Board might determine that its priorities for the Corridor and the Project were in whole or in part inconsistent with the conditions under which the Grant was awarded. The Board reserved the right in Section 7 of the Grant Agree- merit to withdraw the second One Million Dollars ($1,000.000) of funding and to cease funding under the Grant Agreement if it determined that conditions occurred that fundamentally changed the expectations of the parties or that make the remainder of the Grant Agreement infeasible or impractical. E. The Board has determined that the Plan materially changes the scope of the Project and the conservation values of the Corridor identified in the Grant Agreement and Conservation Easement. and has declined to approve the Plan. F. Without the Board's approval of the Plan. the Conservation Easement cannot be amended to include the Plan's terms. Although the Board will not approve 436743.5 1/3/01 the Plan due ro its impmrment of the open space values of the Corridor, the Board believes the Project still significantly advances certain of its parks, trails, and wildlife goals. Therefore, the Board and Grantee agree ro amend the Grant Agreement to allow for a lesser amount of funding in consideration of a restrictive covenant to be placed on the Corridor. NOW. THEREFORE. in consideration of the mutual benefit accruing to the parties hereto. and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowl- edged, the Grant Agreement is hereby amended as follows: 1. The Board has previously funded One Million Dollars ($1.000.000) ,the "Initial Funning") to Grantee to be used solely to complete the Project. ha addition m the One Million Dollars ($1~000.000) granted to Grantee by the Board. the Board shall grant an additional Five Hundred Thousand Dollars ($500.000) in consideration of a Restrictive Covenant running with the land enforceable by the Board and attached hereto as Exhibit A. Grantee's failure to execute the Restrictive Covenant shall be a default hereunder entitiing the Board to terminate this Grant Agreement, and such termination shall be without any further liability or obligation on the part of the Board to pay any such amounts as described above. The additional Five Hundred Thousand Dollars $500,000) shall be funded, subject to the terms and provisions of the Grant Agreement as amended hereby, as follows: One Hundred Fifty Thousand Dollars ($150.000) on or before January 18. 2001: and Three Hundred Fifty Thousand Dollars ($350.0001 on March 31. 2003. 2. The conservation easement created in conjunction with the Grant Agreement shall be extinguished, and in its place shall be the Restrictive Covenant referred to above. The Restrictive Covenant shall be substituted for and supemede the conservation easemem referred to in the Grant Agreement. Ail references to "the Conservation Easement" in the Grant Agreement shall be substituted with the language: "the Restrictive Covenant." 3. The Board shall have the right to enfome the Restrictive Covenant to protect the recreation, open space, and wildlife values of the Project; to enforce access and crossing restrictions set forth therein and in the Comprehensive Plan: and to ensure that future rail transportation use will not significantly impair the recreation, open space, wildlife, and park values of the property subject to the Restrictive Covenant. 4. The provisior~s of the Grant Agreement pertasning to liability in paragraph 5 are hereby be made applicable to the Restrictive Covenant. 5. The terms and provisions of this Amendment are hereby incorporated into the Grant Agreement and except for the amendments, modifications, and deletions expressly contained herein, all of the terms and provisions of the Grant Agreement shall remain ~n full force and effect, and unaltered and unchanged by this Amendment: and the Board and Grantee hereby ratify and reaffirm their respective rights and obligations under the Grant Agreement as amended by this Amendment. To the extent that the terms and provisions of this Amendment conflict with the terms and provisions of the Grant Agreement, the terms and provisions of this Amendment shall control. 436743.5 1/3/I)1 2 6. Unless otherwise specifically defined in this Amendment, capitalized terms shall have the meaning assigned them in the Grant Agreement. 7. This Amendment may be executed in separate counterparts, each of which shall be deemed an original and all of which when taken together shall constitute a whole. It shall be fully executed when each party whose signature is required has s~gned at least one counterpart even though no one counterpart contains the signatures of all the paxties. A signed facsimile transrmttal shall be considered as an original executed document. 436743.5 1/3/0l 3 IN WITNESS WHEREOF. the parties have executed th/s Amendment as of the day and year first written above. GRANTEE: ROARING FORK RA1LROAD HOLDING AUTHORITY Dated: Dorothea Farris, Chair 436743.5 1/3/'01 4 THE BOARD: STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND Dated: Lise Aangeenbrug, Acting Director 436743.5 1/3/01 5 ON BEHALF OF ALL THE VOTING MEMBERS OF ROARING FORK RAILROAD HOLDING AUTHORITY, WHICH ARE DIRECTLY GRANTEES HEREUNDER. AND INTENDING TO BE BOUND HEREBY, THE FOLLOWING LOCAL GOVERNMENTS HAVE EXECUTED THIS AMENDMENT TO THE GRANT AGREEMENT FOR THEMSELVES. AND EXCEPT AS LIM1TED BY ARTICLE VI. PARAGRAPH 5(C) OF THE GRANT AGREEMENT. ON BEHALF OF THOSE OTHER VOTING MEMBERS OF ROARING FORK RAILROAD HOLDING AUTHORITY DESCRIBED ON EXHIBIT J OF THE GRANT AGREEMENT: BOARD OF COUNTY COMMISSIONERS PITKIN COUNTY, COLORADO Dated: Michael C. Ireland. Chair 436743.5 I/3/01 6 CITY COUNCIL. 436743.5 1/3/01 7 CITY COUNCIL CITY OF GLENWOOD SPRINGS. COLORADO Dated: Sam Skramstad. Mayor 436743,5 1/3/01 8 EXHIBIT A Restrictive Covenant 436743.5 1/3/01 AGREEMENT NOTICE: THIS PROPERTY HAS BEEN ACQUIRED IN PART WITH A GRANT FROM THE STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND. THIS AGREEMENT IMPOSES RESTRICTIONS ON THE USE AND DEVELOPMENT OF THE PROPERTY WHICH ARE INTENDED TO PROTECT ITS OPEN SPACE VALUES. THE STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND HAS FOUND THAT THESE RESTRICTIONS ARE IN THE PUBLIC INTEREST. THIS AGREEMENT (the "Agreement") is made this 17c~ day of January, 2001, by the ROARING FORK RAILROAD HOLDING AUTHORITY ("RFRHA"), an unincorporated association comprising the Counties of Pitkin and Eagle. the Cities of Glenwood Springs and Aspen and the Towns of Carbondale, Basalt and Snowmass Village (collectively, the "individual Governments"), which was formed pursuant to Section 29-1-201, et. seq., C.R.S.. and Article XIV of the Colorado Constitution and by a First Amended and Restated Intergovernmental Agreement dated as of June 26. 1997, (the "Intergovernmental Agreement") and the STATE BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND. a political subdivision of the State of Colorado. created by Article XXVII of the Colorado Constitution (the "Board"). 1,0 RECITALS. WHEREAS, pursuant to the terms of its Legacy ProJect Grant, dated June 30, 1997 ("Grant"), the Board agreed to partially fund RFRHA's purchase of certain real property in Pitldn County, Eagle County and Garfield County, Colorado, consisting of an approximately thirty-three mile rail corridor that runs parallel to the Roaring Fork River and encompasses approximately 460 acres between Woody Creek and Glenwood Springs, Colorado (the "Corridor"); WHEREAS, in accordance with the terms and conditions of the Grant, RFRHA previously conveyed to the Park Trust, Ltd. d/b/a Aspen Valley Land Tmst ("AVLT") and the Board of County Commissioners of Pitkin County, a Deed of Conservation Easement and Deed of Trail Easement dated June 30,1997, and recorded at Reception No. 405938 in the real property records of the Pitkin County Clerk and Recorder's office, at Book 731, page 637 of the real property records of the Eagle County Clerk and Recorder's Office and Book 1024, page 621 of the real property records of the Garfield County Clerk and Recorder's office ("AVLT Conservation and Trail Easement Deed"); WHIgREAS, pursuant to the AVLT Conservation and Trail Easement Deed, AVLT acquired a trail easement within the Corridor outside of Pitldn County, and assumed responsibility for the RFRHA/GOCO Agreement Page 1 of 22 EXHIBIT A preservation of the natural, scenic, open space, historical, educational, wildlife, trail and recreational values of th.e Corridor ("Conservation Values")subject to the termination and extinguishment of the easements in accordance with Article VI, Section 7 of the Grant and paragraphs 19 and 27 of the AX, rLT Conservation and Trail Easement Deed; WHEREAS, RFRHA and the Board agree that AVLT has vigorously and conscientiously fulfilled its Board Stewardship Policy and all other responsibilities under the AVLT Conservation and Trail Easement Deed for the protection of the Conservation Values of the Corridor. WHEREAS, pursuant to Article VI, Section 7 of the Grant, and notwithstanding AVLT's fulfillment of its Stewardship and other duties, the Board gave RFRHA notice on July 18, 2000 that because the Comprehensive Plan for the Corridor adopted by RFRHA is inconsistent with purposes of the Grant, the Board would not permit the AVLT Conservation and Trail Easement Deed to be amended to include the terms of the Comprehensive plan; WHEREASI the Board's rejection of the Comprehensive Plan thus triggered the termination, reimbursement and extinguishment procedures set forth in paragraphs 19 and 27 of the AVLT Conservation and Trail Easement Deed; WHEREAS, RFRHA and the Board desire to implement the costs, termination, reimbursement and extinguishment procedures set forth in paragraphs 1 I, 16, 19 and 27 of the AVLT Conservation and Trail Easement Deed in order to fully extinguish AVLT's interests in the Corridor, to fully reimburse AVLT for its costs of (a) enforCing the terms of the AVLT Conservation and Trail Easement and (b) operating and maintaining the Corridor property, and to release AVLT of any further responsibilities under the AVLT Conservation and Trail Easement Deed; and WHEREAS, RFRHA and the Board also desire to ensure the protection in perpetuity of the Conservation Values remaining on those lands located within the Corridor more particularly described below, NOW, THEREFORE, RFRHA and the Board agree that the foregoing recitals are true and further agree as follows: 1.1 RFRHA is the sole owner in fee simple absolute and determinable of certain real property and the assignee of Certain federal and private rights-of-way upon certain other property in Pitkin County, Eagle County and Garfield County, Colorado, consisting of an approximately thirty- three mile rail corridor that runs parallel to the Roaring Fork River and encompasses approximately 460 acres between Woody Creek and Glenwood Springs, Colorado (the "Corridor"). 1.2 Within the Corridor there are located approximately 245.5 acres, more particularly described in Exhibit A attached hereto and incorporated by this reference (the "Property"),which possess certain natural, scenic, open space, historical, educational, wildlife habitat; trail and recreational values (collectively, "Conservation Values") of great importance to the Board and RFRHA/GOCO Agreement Page 2 of 22 RFRHA, and, in particular, to the people of Pitkin, Eagle and Garfield Counties, the Cities of Aspen and Glenwood Springs, and the Towns of Snowmass Village, Carbondale and Basalt. and to the people of the State of Colorado. Throughout this Agreement, any reference to the "Corridor" shall include all lands within the Corridor, including those defined herein as the "Property." 1.3 The specificConservationValuesofthePropertyaremomparticUtarlydescribedinthe attached Exhibit A and in the Comprehensive Plan for the Aspen Branch of the Denver & Rio Grande Western Railroad Corridor adopted by RFRHA and approved by all voting members of RFRHA effective April 26. 2000 ("Comprehensive Plan") that the parties agree provide an accurate representation of the Property on the date of the recording of this Agreement and which is intended to serve as an objective information baseline for monitoring compliance with the terms of this Agreement. 1.4 The Board and RFRHA intend that the Conservation Values of the Property be preserved, maintained and enhanced by the continuation of appropriate land use patterns and the introduction of new land use patterns on the Corridor. including, without limitation, those relating to trail, recreation, open space, wildlife, park. and the development and use of a comprehensive mass transportation system, including without limitation train/light rail transit (generally hereinafter referred to as "mass transit"), that do not significantly impmr or interfere with the Conservation Values, and that maintain the Corridor for the foregoing purposes. 1.5 RFRHA is the recipient of a prior Legacy Project Grant. dated June 30, 1997 ("Grant"). Pitkin County is RFRHA's designated Agent for admimstering the Grant, including but not Limited to contact with the Board and its staff in all matters pertaining to implementation of the work plan as described in the initial Legacy Grant Project Application, all official requests for funding of a specific appropriation of the Grant and executing any addenda and amendments thereto. 1.6 In consideration for the Board's agreement to amend the Grant to provide for additional funding to RFRHA, RFRHA agrees m grant to the Board the right to monitor and enforce RFRHA's obligation to preserve and protect the Conservation Values of the Property in perpetuity, as well as RFRHA's right and obligation to develop a trail the length of the Corridor outside Pitkin County and to provide access to public lands adjacent to the Corridor and access to the Roaring Fork River, as more particularly described herein (collectively, "Conservation and Trail Obligations"). 1.7 The Board wishes to amend the Grant and acquire the right to monitor and enforce RFRHA's performance of its Conservation and Trail Obligations, which right shall be a covenant running with the land, held by the Board in gross ~n perpetuity. 1.8 RFRHA agrees by accepting the Grant. as amended, to honor the intentions of the Board stated herein, to cause the preservation and protection in perpetuity of the Conservation Values of the Property for the benefit of tl-us generation and generations to come. and to cause the construction and maintenance of a trail on the Corridor. RFRHA/GOCO Agreement Page 3 of 22 2.0 Purpose and Intent. 2.1 It is the purpose of thifs Agreement to ensure that the Corridor will be maintained as a linear, open space corridor, appropriate for trails, recreation, wildlife, environmental, and educational purposes, while also permitting the construction of trails and trailhead facilities and the continuation. construction and/or operation of mass transit servmes and facilities, but preventing any other use of the Corridor that will significantly impair or interfere with any trail on the Corridor or the Conservation Values of the Property. RFRHA intends that unless and until terminated in accordance with the terms of this Agreement. the restrictions herein will constitute a perpetual covenant running with the land held by the Board in gross, which restrictions will confine the use of the Corridor and the Property to the activities enumerated herein and RFRHA shall enforce these use limitations against all other, individuals and government entities. 2.2 The parties acknowledge and agree that the Corridor was Onginaily purchased and is held by RFRHA in perpetuity not only for its Conservation Values and the construction and maintenance of a trail, but for the re-establishment of a mass transit system in the furore. The Corridor was purchased by RFRHA from the Southern Pacific Transportation Company and its successors as a raikoad subject to the jurisdiction of the federal Surface Transportation Board ("STB"). In addition, the Corridor was purchased subject to certain existing access easements, trails and trails facilities, easements, licenses, leases, operating agreements and utility easements. Accordingly, RFRHA shall be permitted to take all actions necessary with STB and the State of Colorado. Department of Transportation ("CDOT") and the Public Utilities Commissmn ("PUC"), to ensure the continuing ability of RFRHA to operate and manage the Corridor as a railroad. It is not the intent of the parties to interfere with the legal rights and obligations of RFRHA attendant to the operation of a mass transit corridor or the legal rights and obligations of tenants or grantees of easements upon the Corridor, including the trail easement owned by the Board of County Commissioners of Pitkin County, Colorado, on the Corridor within Pitkin County; provided, however, that to the extent reasonable and practicable the design criteria and operation of mass transit improvements and rail alignments shall consider and respect the Conservation Values and trail uses of the Property. 2.3 Notwithstanding any language to the contrary contained in this Agreement or appended exhibits incorporated herein by reference, nothing in this Agreement shall be read or understood to mean that any portion of the Corridor shall be altered; changed or designated as a "park" within the meaning of Section 4(f) of the Department of Transportation Act or Section 138 of the Federal-Aid Highway Act, until such time as any Updated Comprehensive Plan Ias described in Section 5.1. below) is adopted by RFRHA and approved in accordance with this Agreement and RFRHA passes a resolution designating any portion of the Property as "parklands." Except as necessary to carry out existing uses of the Corridor and to implement requirements imposed under the ICC Termination Act, related statutes, regulations and orders of the Surface Transportation Board. and to mahatain the Corridor in a reasonable and prudent fashion, no physical use and/or construction impacts to the Corridor shall occur unless and until appropriate National Environmental Policy Act (NEPA~ documentation is completed, including satisfying the provisions of Section 4(f) of the Department of Transportation Act and Section t06 of the Federal Aid Highway Act. as appropriate, with RFRJ'IA/GOCO Agreement Page 4 of 22 agreement from the State Historic Preservation Officer and the Advisory Council on Historic Preservation, in accordance with the terms of the Comprehensive Plan. Notwithstanding the foregoing, the construction of an interim trail on the Corridor, which is exempt from the foregoing requirements, existing public uses of the Corridor. and those crossings and other uses planned by various governmental entities (as described in the Comprehensive Planl shall be permitted. 3.0 Trail Easement in Pitkin County Acknowledged and Other Trail Obligations Assume,1. 3.1 Within that portion of the Corridor located in Pitkin County, RFRHA has previously granted to Pitkin County a Deed of Conservation Easement and Deed of Trail Easement, dated June 26, 1997 and recorded in the real property records of the Pitkin County Clerk and Recorder' s Office at Reception No. 405938 (the "Deed of Conservation and Trail Easement"), by which RFRHA conveyed to Pitkin County an interim trail easement which encumbers the entire Corridor within Pitkin County (the "Pitkin County Trail Easement"). Pursuant ro the terms of the Deed of Conservation and Trail Easement, the interim Pitkin County Trail Easement shall remain until such time as mass transit is placed within the Corridor. or December 31. 2020 (whichever is earlier), at which time a perpetual twenty foot (20') wide trail easement shall be identified and legally described within the Corridor and which easement shall replace the interim Pitkin County Trail Easement. Nothing contained in this Agreement shall be deemed to modify, amend or in any way affect the Pitkin County Trail Easement created pursuant to the Deed of Conservation and Trail Easement. 3.2 As an exmnsmn of the Pitkin County Trail Easement. RFRHA hereby designates a trail upon the entire Corridor outside Pitkin County (The "RFRHA Trail") on an interim basis until such time as mass transit is placed within the Corridor, or December 31, 2020 (whichever is earlier), at which time a perpetual twenty foot (20') wide RFRHA Trail shall be identified and legally described within the Corridor replacing the interim RFRHA Trail. The interim RFRHA Trail outside Pitkan County shall connect ro the Pitkin County Trail Easement, shall be continuous, and shall accommodate hiking, mountain biking, horseback riding and cross-country skiing, while preserving the Corridor for mass transit, along any route on the Corridor chosen by RFRHA, subject to the Board's approval, which shall not be unreasonably withheld, until such. time as a permanent trail is constructed in accordance with the Comprehensive Plan or any Updated Comprehensive Plan(as defined in Section 5.1, below). It is anticipated that RFRHA will receive and will utilize funding for the construction of the RFRHA Trail from the Roaring Fork Transportation Authority and/or other third party funding services. In the event such trail construction funds are not received by RFRHA. RFRI-IA shall have no obligation to locate and construct said interim trail, and following the f~t to occur of the construction of mass transit on the Corridor or December 31, 2020. the Board shall release and relinquish any rights it may have to enforce any of RFRHA's Trail Obligations outside of a fixed twenty (20) foot trail corridor (which shall be pinned and surveyed by RFRHA) by recording a release in the appropriate coumy land records. 4.0 Grant of Rk, ht to Monitor and Enfarce RFRI-IA's Conservation and Trail 0bligation~. RFRHA shall be solely responsible for the performance of its Conservation and Trail Obligations. The Board shall have the right to monitor and enfome RFRHA's performance of its Conservation RFRHA/GOCO Agreernenr Page 5 of 22 Obligations on the Property and its Trail Obligations througlaout the length of the Corridor. as more fully set forth below. 4.1 ~he Board. To accomplish the purposes of this Agreement. the following rights are conveyed to the Board by RFRHA under this Agreement: 4.1.1 To cause the preservation and protection of the Conservation Values of the Property consistent with the terms of this Agreement and consistent with the intended mass transit uses upon the Corridor; 4.1.2 To enter upon the Corridor at reasonable times in order to monitor RFRHA's compliance with and otherwise enforce the terms of this Agreement; and 4.1.3 To prevent any activity on or use of the Corridor that is inconsistent with the terms and purposes of this Agreement that adversely impacts the Conservation Values of the Property or the RFRHA Trail upon the Corridor, or that is in violation of this Agreement, and to require the restoration of such areas or features of the Property that may be damaged by any inconsistent activity or use. To that end, the Board shall have the right of immediate entry to stop, pursuant to court order, any activities described in the preceding sentence or to cause RFRHA to stop any such activities. 4.1.4 The Board shall have the right to appoint an agent to exercxse on the Board's behalf any of the rights granted the Board under this Agreement. The designation of the Board's agent may be changed by a written statement by the Board addressed to and received by the RFRI-IA Executive Director. 4.1.5 To enable the Board to further monitor RFRHA's performance of its Conservation Obligations on the Property and its Trail Obligations on the Corridor, RFRHA shall also submit to the Board a written update report, in form and substance acceptable to the Board, on the condition of the Corridor not less than once annually. 5.0 Corn :rehensive Plan_. 5.1 The Corridor shall be developed and operated in accordance with the terms of the Comprehensive Plan. The Comprehensive Plan will be updated and reapproved by RFRI-IA. all voting members of RFRHA, and the Board no less frequently than every five (5) years thereafter until such time as the mass transit and trail uses are implemented throughout the Corridor (the "Updated Comprehensive Plan"). The parties hereto acknowledge and understand that approval of any Updated Comprehensive Plan by the Board shall be in accordance with Section 5.2. below. 5.2 The Board shall not unreasonably withhold its approval of any Updated Comprehensive Plan. In deciding whether to approve an Updated Comprehensive Plan, the Board shall consider the RFR['IA/GOCO Agreement Page 6 of 22 updated plan' s impact on use of the Corridor for rail, trail, open space, wildlife, and parks purposes. Specifically, the following factors will be evaluated: 5.2.1 Whether the Updated Comprehensive Plan is consistent with the purpose and intent section (Section 2.0. above ~ of this Agreement and the guiding principles set forth below in Section 5.4. 5.2.2 Whether the Updated Comprehensive Plan is generaliyconsistent with the project as initially described in the original Legacy Grant Application; and 5,2.3 Whether the Updated Comprehensive Plan includes the items that the Board has agreed it will contain (access plan, trail plan. etc.) listed in Section 5.3, below. 5.2.4 In the event that the Board does not approve an Updated Comprehensive Plan, RFRHA and/or the Board shall have the right to terminate this Agreement and all of RFRHA's obligations with respect to the Board. RFRHA's obligations to the Board may only be terminated upon the repayment of the funds granted by the Board plus interest on such sum at the rate earned by the Board's funds invested by the Treasurer of the State of Colorado from the date of this Agreement until repayment, provided that repayment is made within six (6) months of the Board's disapproval of any Updated Comprehensive Plan. In the event of RFRHA's timely repayment, the parties will cooperate in the execuuon and recording of such documents as either party may in its discretion deem appropriate to accomplish the formal termination of this Agreement; provided that this Agreement will not be terminated until the Grant is repaid in full as provided in this Section. 5.3 Any Updated Comprehensive Plan shall include, but is not limited to: (1) location of both a permanent continuous public recreation trail running along the entire length of the Corridor and the location of a continuous interim trail within the Pitldn County portion of the Corridor. all in accordance with Ordinance 97-26 of the Board of County Commissioners of PitlOn County and the location of an interim trail outside of Pitidn County; (2) location and description of trail head facilities; (3) identification of public access points over the Corridor for the purpose of gaming access to the Roaring Fork River and other public lands along the Corridor for public recreation; (4) description of proposed wildlife and environmental education programs, on the Property; (5) a signage plan for all activities to be developed within the Property; (6) location and exxstence of historic structures or areas; (7) a biologic inventory of the Property to amend and update the Comprehensive Plan; (8) identification of criteria to be considered in implementing any Updated Comprehensive Plan to protect and preserve the Conservation Values of the Property to the extent reasonable and practicable: (9) description of structures and facilities necessary to place and operate a mass transit system and their location within the Corridor; (10) the identification of all areas, other than Pitkin County, where the Corridor will not support both trail and mass transit uses in these areas the Updated Comprehensive Plan will identify alternate routes for trails); (11 ) identification of al/utility easements and facilities, both underground and above surface, including, including, but RFRHA,/GOCO Agreement Page 7 of 22 not limited to, telecommunication facilities: and (i 2) a detailed improvements and operations plan for all uses, including a management and funding strategy. 5.4 The principles that will guide any Updated Comprehensive Plan (including an access management plan) and optimize the Corridor's trail, mass transit, open space, recreational, parks and wildlife uses and values are as follows: 5.4.1 The Corridor shall be managed to protect the health and safety of those using the Corridor: 5.4.2 New road crossings over the Corridor shall be minimized: 5.4.3 Existing crossings shall be consolidated so long as the trail, mass transit, open space, recreational, parks, and wildlife uses and values will not be impaired by so doing; and 5.4.4 Any development permitted in the Corridor (including, but not limited to mass transit facilities, trails, road crossings, etc.) shall be located, designed. constructed and managed in a manner that avoids, minimizes or mitigates adverse impacts to the open space, recreation, scenic and wildlife values of both the Corridor and adjacent lands that add to the scenic value and enjoyment of the Corridor. 5.5 Except as necessary to carry out existing uses of the Corridor and to implement requirements imposed under the ICC Termination Act. related statutes, regulations and orders Of the STB, no facilities or structures related to mass transit uses shall occur on the Corridor that are inconsistent with the Comprehensive Plan or any Updated Comprehensive Plan, which plans shall limit and control the development, location, size and use of such mass transit facilities and structures allowed on me Corridor as well as all other uses allowed on the Corridor. 6.0 Prohibited, Restricted and Permitted Uses and Activities Upon the Propert,. The parties hereto acknowledge and agree that certain uses of and activities upon the Property would be inconsistent with the purpose and intent of the Agreement. Accordingly, the parties agree that except to the extent permitted in this Section 6, any activity on or use of the Property inconsistent with the purposes or intent of this Agreement is prohibited. Without limiting the generality ofthe foregoing, the following activities and uses are expressly prohibited, restricted or permitted as specifically indicated and RFRHA agrees it shall not engage in any activities or uses nor shall it permit third parties to engage in any activities or uses on the Property that are inconsistent with the purposes and intent of the Agreement. 6.1 Construction of Buildln~? and/or Other Structur:n. The construction or reconstruction of any building or other structure or improvement, except those existing on the date of this Agreement and except as necessary to implement other approved uses set forth in the RFRHA/GOCO Agreement Page 8 of 22 Comprehensive Plan ~such as mass transit, trails, s~gnage for trails and trailheads, and existing licenses and easements), is prohibited except as may be permitted below. 6.2 Fences. RFRHA may repair or replace existing fences, and new fences may be built by RFRHA for purposes of reasonable and customary management of livestock and wildlife, and for separation of ownership and uses along trails to protect trail users; provided that any fences must be consistent with the Comprehensive Plan, providing for passage of the public and wildlife, where appropriate. With regard to fences for livestock or that may effect wildlife purposes only, such fences shall comply with the regulations and/or advice of the Colorado Division of Wildlife. 6.3 New Crossings, Structures and/or Improvemente, New crossings, structures and/or improvements that RFRHA desires ro construct which are directly related to mass transit, trails. outdoor recreation, open space, wildlife, parks, or trails, and access points shall be consistent with the Comprehensive Plan and any Updated Comprehensive Plan. Those crossings, structures and improvements consistent with the Comprehensive Plan or any Updated Comprehensive Plan may be constructed by RFRHA without the consent of the Board. but RFRHA must provide prior notice as set forth under Section 8 herein. In addition. RFRHA shall be entitled to construct without the Board's approval any crossings, structures and/or improvements necessary to implement requirements imposed under the ICC Termination Act, related statutes, regulations and orders of the STB; however, RFRHA must provide notice to the Board as set forth under Section 8 herein, which notice shall include reference to the act or statute requiring such improvement construction. The parties hereto acknowledge that the Property is burdened by a telecommunications easement owned by Qwest Communications Corporation ("Qwest") which authorizes the easement owner certain rights to construct certain ancillary facilities on the Property. The Property is also burdened by a subeasement agreement from Qwest to U.S. West Communications, Inc. (U.S. West). Said facilities shall not be prohibited provided they are consistent with the terms of that certain Third Amendment to Easement Agreement (Aspen Branch) between Southern Pacific Transportation Company, Qwest and RFRHA, or the First Amendment to the Subeasement Agreement between Qwest, U.S. West and RFRHA, memoranda of which are of record. 6.4 Subdivision. Any division or subdivision of title to the Property, whether by physical or legal process shall be prohibited. 6,5 Harvestin Tiraber_. Cutting of trees shall be prohibited, except that trees may be cut to control insects and disease, to control invasive non-native species, to prevent personal injury and property damage, and to enable construction and maintenance of permitted uses allowed to be developed within the Property. Dead trees may also be cut for firewood and other uses on the Property; however; at least three (3) dead trees per acre shall remain uncut. Commercial timber harvesting on the Property shall be prohibited. The Board shall be provided with notice prior to the cutting of trees pursuant to this provision. 6.6 Mining. The mining or extraction of soil, sand. gavel, rock, oil, natural gas, fuel, or any other mineral substance shall be prohibited on the Property except as permitted hereunder for the purpose of mass transit and trail improvements. RFP, HA/GOCO Agreement Page 9 of 22 6.7 Paving and Road and Trail Construction. Except as permitted in this Agreement and as set forth in the Comprehensive Plan or any Updated Comprehensive Plan (including the proposed extension of Industry Place in the Town of Carbondale and the Glenwood By-pass), no portion of the Property shall be paved or otherwise covered with concrete, asphalt, or any other paving material, nor shall any road crossings or trails be constructed, except that RFRHA shall be entitled to construct any road necessary for the Property to be categorized a "public highway'' under 43 U.S.C, § 912 and Colorado law, in the event that the Corridor could not otherwise be maintained as a continuous linear corridor. Trails for non-motorized uses as provided in the Comprehensive Plan or any Updated Comprehensive Plan may be paved. Notice of any such paving or read or trail construction shall be provided to the Board in accordance with Section 8, herein. 6.8 Trash. The dumping or uncontained accumulation of any kind of trash or refuse on the Property shall be prohibited, 6.9 Water Rights. RFRHA shall retain and reserve the fight to use such water rights as may be appurtenant to the Property in order to maintain and improve the Conservation Values of the Property, and shall not transfer, encumber, lease, sell or otherwise separate any such appurtenant water rights from title to the Property itself. 6.10 Commercial or Industrial Activity. No commercial or industrial uses unrelated to mass transit and associated uses shall be allowed on the Property except as provided in this Section 6 or the Comprehensive Plan and except that RFRHA shall be entitled to grant underground easements; provided that (i) the utility provider's usage does not substantially diminish the Conservation Values or interfere with the purposes of this Agreement and the utility provider is required to revegetate and restore the surface of the Property to its former condition to the extent possible, and (ii) the Board f~rst approves the form of easement agreement in accordance with the notice provisions of Section 8, herein. No part of the Property shall be used as a parking lot. 6.11 Mass Transit and Trail Improvements. It is agreed and acknowledged that the principal purpose for the preservation of the Corridor is to allow it to be used for the development of a public recreation trail, to allow public access to other public lands, to preserve open space and wildlife habitat, to provide access to the Roaring Fork River~ and to allow for the development o~' mass transit uses. Accordingly, construction of mass transit and trail improvements shall be allowed as follows: 6.11.1 Mass Transit. The construction and maintenance of improvements on the Property directly related to and necessary for the operation of mass transit shall be permitted. provided that: 6.11.1.1 No improvements shall be made unless and until they have been provided for in the Comprehensive Plan or any Updated Comprehensive Plan. except as necessary to carry out existing uses of the Property and to implement RFRHA/GOCO Agreement Page 10 of 22 requirements imposed under the ICC Termination Act, related statutes, regulations. and orders of the STB. 6.11.1.2 The improvemems must be directly related to and necessary for the operation of the mass transit. By way of example, but not limitation, such improvements on the Property would include tracks, switching stations, boarding platforms and terminal stations, and would not include ancillary uses such as shops, restaurants, and lodging facilities. 6.11.1.3 The improvements must be designed and constructed in a way so as not to interfere materially in the use of the entire length of the Corridor for trail, open space, wildlife, parks and any other recreational uses or interfere with access points to public lands. 6.11.1.4 Upon the implementation of mass transit on the Corridor. or December 31, 2020, whichever occurs first, the trail shall be grade separated by RFRHA: provided, however, that prior to December 31, 2020, RFRHA shall be required to grade separate the trail only at those points of intersection between the trail and actual mass transit operations, it being understood that mass transit may be implemented upon different segments of the Corridor and at different times prior to December 31,2020. 6.12 Trail. The construction and maintenance of improvements directly related to and necessary for the operation of the RFRHA Trail and for access points m public lands and related recreational uses shall be permitted without the Board's approval, but upon notice as set forth in Section 8, herein, Such uses may include, but shall not be limited to: trail construction, including the paving and re-paving of a trail, trail head facilities and trail connection, between the RFRHA Trail and other trails connecting to the Corridor. Trail development shall be planned and developed to avoid adverse impacts to riparian areas and other sensitive natural areas, unless there is no acceptable alternative, in which case impacts shall be mitigated. 7.0 Existing Uses and Uses Permitted Pursuant to the Comprehensive Plan, The parties further acknowledge and agree that the Corridor is currently being used for certain purposes, and that certain new crossings and uses are specified in the Comprehensive Plan (including the placement of wildlife and environmentally educational interpretive signs), which uses shall be considered as permitted uses; provided, however, any necessary permits and environmental clearances required by any local, state, and federal agency has been granted or will be granted prior to construction. 8.0 Notice of Intention to Undertake Certain Permitted Action,. The purpose of requiring RFRHA to notify the Board prior to undertaking certain permitted activities under this Agreement is to afford the Board an opportunity m ensure that the activities in question are designed and carried out in a manner consistent with the purpose of this Agreement and to allow the Board the ability m adequately monitor this Agreement. Whenever RFRHA engages in any activity within the Corridor which is not a currently existing or permitted use as identified by the Comprehensive Plan. RFRHA RFRHA/GOCO Agreement Page 11 of 22 shall notify the Board in writing not less than sixty (60) days prior to the date RFRHA intends to undertake the activity in question. The notice shall describe the nature, scope, design, location. timetable, and any other material aspect of the proposed activity in sufficient detail to permit the Board to make an informed judgment as to ~ts consistency with the purpose of this Agreement and shall include a map indicating the location of such activity. 9.0 Board's Approval. Where the Board's approval is required under this Agreement. the Board shall grant or withhold its approval in writing within sixty (60) days of receipt of RFRHA's written request therefor. The Board's approval may be withheld only upon a reasonable determination that the action as proposed would be inconsistent with the purpose of this Agreement or contrary to its terlI1S. 10.0 Enforcement. Except as provided herein, the Board shall have the right to cause the prevention or mqnlre the correction of violations of the terms and purposes of this Agreement. The Board may enter the appropriate portion of the Corridor for the purpose of inspecting for violations. If the Board finds what it believes is a violation, it shall immediately notify RFRHA in writing of the nature of the alleged violation and what steps are necessary to correct the violation. Within not mom than ten (10) days following receipt of this written notice. RFRHA shall either Ia) restore the Corridor to its condition prior to the violation. (b) provide a written explanation to the Board of the reason why the alleged violation should be permitted, or (c) take action m prevent any th/rd party violations of this Agreement and cause restoration of the Corridor following notice to the Board of the actions it intends to pursue. If the condition described in clause (b) above occurs, both parties agree to meet as soon as possible to resolve this difference. Ifa resolution of this difference cannot be achieved at the meeting, both parties agree to meet with a mutually acceptable mediator to attempt to resolve the dispute at the mediation session. When. in the Board's opinion, an ongoing or imminent violation could materially diminish or impair the trail on the Corridor or Conservation Values of the Property, the Board may, at its discretion, take appropriate legal action. RFRHA shall discontinue any activity which gave rise to the Board's notice of violation from the date of receipt of such notice until the matter is decided. If there is no resolution of the dispute by the end of the mediation session, the Board may, at its discretion, take appropriate legal or equitable action. If a court with jurisdiction determines that a violation is tmminent, exists, or has occurred, the Board may seek any relief permitted at law or in equity, including a temporary or permanent injunction. The Board may also request a court issue an injunction to require RFRHA to restore the Corridor to its condition prior to the violation by either RFRHA or a third party. 11.0 Cost of Enforcement. Except as provided in the following sentence, any costs incurred by the Board in enfoming the terms of this Easement against RFRHA or any third party, including, without limitation,, mediation fees, costs of suit and reasonable attorneys' fees, and any costs of restoration necessitated by RFRHA's violation of the terms of this Easement. shall be borne by RFRHA whether or not the Board prevails. However. if a court of competent jurisdiction roles that any action brought by the Board is frivolous in nature or was vexatious or brought in bad faith, RFRHA's and the Board's costs of suit, including, without limitation, reasonable attorneys' fees. shall be borne by the Board. RFRHA/GOCO Agreement Page 12 of 22 12.0 The Board's Discretion. Enfomement of the terms of this Agreement shall be at the discretion of the Board and, in the' event of any breach of any term of this Agreement by RFRHA. any forbearance by the Board to exercise its rights under this Agreement or any other remedy available at law or equity shall not be deemed or construed to be a waiver by the Board of such remedy under this Agreement or otherwise available to the Board at law or equity. No delay or omission by the Board in the exercise of any right or remedy upon any breach by RFRHA shall impair such right or remedy or be construed as a waiver. 13.0 Waiver of Certain Defenses. The parties hereby mutually waive any defense of laches. estoppel, or prescription. RFRHA shall not raise, and hereby waives, any defense to the Board's enforcement of the terms of this Agreement under the laws of sovereign immunity or the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq. 14.0 Acts Beyond RFRI-IA's Control. Nothing in this Agreement shall be construed to entitle the Board to bring any action against RFRHA for any injury to or change in the Corridor resulting from causes beyond RFRHA's control, including without limitation, fire, flood, storm and earth movement, any judicial or governmental rule, order or other official action, or from any prudent action taken by RFRHA under emergency conditions to prevent, abate or mitigate significant injury to the Corridor resulting from such causes. Violations of this Agreement by any third party not described herein shall not be deemed to be an "act beyond RFRHA's control." 15.0 Access, Notwithstanding anything else in this Agreement to the contrary, RFRHA shall provide the public access to and along the Corridor to the extent necessary to facilitate the Corridor's use for recreational, trail, open space, wildlife, parks and mass transit uses. To the extent provided by Colorado law, RFRHA shall maintain, operate and keep open a public trail with the Corridor that meets the definition of a "public highway legally established" as used in 43 U.S.C. § 912 and all regulations promulgated thereunder. However, with respect to public or private access laterally across the Corridor not consistent with the Comprehensive Plan or any Updated Comprehensive Plan, access shall be restricted so as to: (i) allow for the possible resumption of rail use along the Corridor as is contemplated by 16 U.S.C. § 1247(d) and the regulations promulgated thereunder;(ii) protect the health and safety of those using the Corridor for recreational purposes; and (iii) discourage the occurrence of increased vehicular traffic over the Corridor which is inconsistent with the Conservation Values, the Comprehensive Plan and any Updated Comprehensive Plan. 16.0 Costs and Liabilities, RFRHA retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Corridor. including, but not limited to, noxious weed control, the maintenance of adequate comprehensive general liability insurance coverage with the Board named as an additional insured, and the cost of repmring and/or revegetating areas of the Corridor disturbed in violation of this Agreement or by a third parry. RFRHA shall keep the Corridor free of any liens arising out of any work performed for. materials furnished to, or obligations incurred by RFRHA. RFRHA/GOCO Agreement Page 13 of 22 17.0 Taxes. RFRHA shall pay, before dehnquency, all taxes, assessments, fees and charges of whatever description levied on or assessed against the Corridor by competent authority (collectively, "Taxes"), including any Taxes incurred as a result of this Agreement, and shall furnish the Board with satisfactory evidence of payment upon request. The Board is authorized but in no event obligated to make or advance any payment of taxes, upon ten (10) days prior written notice to RFRHA, in accordance with any bill. statement, or estimate procured from the appropriate authority, without inquiry into the validity of the taxes or the accuracy of the bill. statement, or estimate, and the obligation created by such payment shall bear interest until paid by RFRHA at the lesser of four hundred (400) basis points over the prime rate of interest from time to time charged by Norwest Bank of Denver, or if not then in existence, the Denver bank with the largest asset base. or the maximum rate allowed by law. 18.0 Liability. RFRHA assumes all responsibility for (i) the negligent actions of its officiais. employees and agents in the performance or failure to perform incident to this Agreement, (ii) injury to or the death of any person, or physical damage to any property resulting from any act. omission, condition, or other matter related'to or occumng on or about the Corridor. regardless of cause unless due solely to the negligence of the Board, its officials, employees, or agents, and (iii) the presence or release of hazardous or toxic substances on, under or about the Corridor; and shall be responsible for all liabilities, claims, demands, damages, or costs caused thereby. It is agreed that such liabilities shall not exceed any applicable limits set forth in the Colorado Governmental Immunity Act ("CGIA")now existing, or as may hereafter be amended, nor confer any benefits to any person not a party to this Agreement. By agreeing to this provision, except as provided herein, RFRHA does not waive or intend to waive the limitations on liability which are provided to RFRHA under CGIA. C.R.S. § 24-10-101, et seq. In assuming responsibility for the negligent acts or ormssions of its own officials, agents and employees in the performance or failure to perform incident m this Agreement. RFRHA in no way assumes responsibility for the negligence or intentional misconduct of the employees or agents of the Board. RFRHA hereby waives any and all rights to any type of express or implied indemnity from the State of Colorado, the Board, or any of their respective officers. agents or employees, for any liability reSUlting from, growing out of, or in any way connected with or incident to this Agreement. For the purpose of this paragraph, "hazardous or toxic substances" shall mean any hazardous or toxic substance which is regulated under any federal, state or local law. 19.0 Indemnity. 19.1 RFRHA, within its legal ability to do so under the Constitution of the State of Colomdo and other laws, and without in any way or manner intending to waive or waiving the defenses of limitation on damages provided under and pursuant to the Colorado Governmental Immunity Act ("CGIA"), the Colorado Constitution, or under common law or the laws of the United States or the State of Colorado, except as specifically waived herein, shall indemnify, defend and hold harmless, the Board, its members, officers, agents and employees from any and all liabilities, claims, demands, damages or costs (including reasonable attorneys' fees) resulting from, growing out of, or in any way connected with or incident to this Agreement, except to the extent caused by the negligence or wilful and wanton conduct of the Board, its members, officers, agents or employees. The Board acknowledges it is liable for its own negligent acts. RFRHA hereby waives any and ail rights to any RFRHA/GOCO Agreement Page 14 of 22 type of express or implied indemnity from the State of Colorado. the Board, its members, officers, agents or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this Agreement. The Board's indemnity rights set forth herein and in the Legacy Grant, as amended, shall survive termination of this Agreement. 19.2 Notwithstanding any other provision of this Agreement to the contrary, no term or condition of this Agreement shall be construed or interpreted as a wmver, either express or implied, of any of the immunities, rights, benefits or protection provided to the Board or RFRHA under the CGIA. The Board and RFRHA understand and agree that liability for claims for injuries m persons or property arising out of the negligence of the Board or RFRHA, or their respective members. officials, agents and employees ~s controlled and limited by the provisions of the GCIA. The parties agree that no provision of th.is Agreement shall be construed in such a manner as to reduce the extent to which the GCIA limits the liability of the Board or RFRHA. or their respective members, officers. agents and employees. 19.3 Notwithstanding any other provision of this Agreement to the contrary, the voting members of RFRHA, (i) shall not be liable for any monetary damages under this Agreement or any other financial obligation under this Agreement except to the extent to their liability as members of RFRHA, as set forth in the Intergovernmental Agreement; and (ii) shall be' directly subject to any equitable remedies by the Board, such as injunctive relief, in the event any of them falls to perform its obligations under this Agreement or otherwise breaches this Agreement. 20.0 Termination and Extinguishment. In addition to RFRHA's tight of termination under the circumstances and pursuant to the terms set forth in Section 5.2.4, above, which method of termination shall not require judicial proceedings, if other circumstances arise in the furore such as render any purpose of this Agreement impossible to accomplish, this Agreement may be tenuinated and extinguished pursuant m the terms of this Section 20.0, whether in whole or in part, by judicial proceedings in a court of competent jurisdiction. Each party shall promptly notify the other when it first learns ~f such circumstances. If this Agreement is terrmnated and extinguished in part. it shall remain valid as to the portion deemed not to be terminated and extinguished. In the event of condemnation, involuntmy conversion, sale or exchange of any portion of the Corridor subsequent to such termination and extinguishment, the amount of the net proceeds ro which each party shall entitled, after the satisfaction all outstanding RFRHA obligations and prior claims, shall be determined, unless otherwise provided by Colorado law at the time, as follows: The Board, in its sole discretion, shall be entitled to receive the greater of (i) the gross proceeds multiplied by eighteen percent (18 %), which figure represents the percentage of the original purchase price of the Corridor paid by RFRHA ($8,500,000) which was provided by the Board ($1,500,000). or (ii) the amount of the Grant, as amended, from the Board which was used to acquire the Corridor multiplied by a fraction, the denominator of which shall be the Consumer Price Index ("CPI") figure published for the month immediately preceding the month in which the Grant was RFRttA/GOCO Agreement Page 15 of 22 given (June, 1997), and the numerator of which shall be the CPI figure published for the month in which the sale, exchange or involuntary conversion occurs. As used herein, the term "Consumer Price Index" or "CPI" shall mean the U.S. Department of Labor's Bureau of Labor Statistics' Consumer Price lndex All Urban Consumers All ltems. Denver, Colorado 1982-1984equals 100), or the successor of such index as determined by the Board. 21.0 Assignment. This Agreement is assignable, but RFRHA may assign its rights and obligations under this Agreement only m an organization that is approved as an assignee by the Board in advance and in writing. As a condition of such transfer, the Board shall require that the Conservation and Trail Obligations set forth in this Agreement continue to be carried out. 23.0 Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by certified mail, postage prepaid, return receipt requested, and addressed as follows: To RFRHA: Robert M. Noone, Esq. P.O. Drawer 39 Glenwood Springs. CO 81602 and Executive Director Roaring Fork Railroad Holding Authority P.O. Box 1273 Carbondale, CO 81623 To the Board: Executive Director State Board of the Great Outdoors Colorado Trust Fund 303 East 17th Avenue, Suite 900 Denver, Colorado 80203 or to such other address as either of the parties shall designate from time m time by written notice to the others, 24.0 Recordation. The Board shall record this Agreement in timely fashion in the official records of each county in which the Corridor is situated, and may re-record it at any time as may be required to preserve its rights in this Agreement. 25.0 Controlling Law. The interpretation and performance of this Agreement shall be governed by the laws of the State of Colorado. 26.0 Liberal Construction. Any general rote of construction to the contrary notwithstanding, this Agreement shall be liberally construed to effect the purpose of this Agreemant. If any provision in this Agreement is. found to be ambiguous, an interpretation consistent with the purpose of this RFRttA/GOCO Agreement Page 16 of 22 Agreement that would render the provision valid shall be favored over any interpretation that would render it invalid. 27.0 Severabilitv. If any provision of this Agreement, or the application thereof to any persons or circumstances is found to be invalid, the remainder of the provisions of this Agreement, or the application of such provisions to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected thereby. 28.0 No Third Party Beneficiaries. There shall be no direct or indirect third party beneficiaries of this Agreement and neither RFRHA nor the Board shall be liable to any third party for any default or breach of this Agreement. 29.0 No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of RFRHA's tide in any respect. 30.0 Termination of Rights and Obligations. A party's rights and obligations under this Agreement terminate upon transfer of the party's interest in the Agreement or the Corridor except that liability for acts or omissions occurring prior to transfer shall survive transfer. 31.0 Captions. The captions in this instrument have been inserted solely for convemence of reference and are not a parr of this instrument and shall have no effect upon construction or interpretation, 32.0 Amendment. If the circumstances arise under which an amendmem to or modification of this instrument would be appropriate, RFRHA and the Board are free to amend jointly this instrument: provided that the prior written approval of RFRHA and the Board shall be required. The parties hereto acknowledge that following the adoption of any Updated Comprehensive Plan referenced in Section 5 herein above, that this Agreement may require amendment to conform to the Updated Comprehensive Plan. Any amendment made to accommodate any approved and adopted Updated Comprehensive Plan shall avoid, minimize or mitigate adverse impacts to trails, open space. recreation, scenic and wildlife values of the Property. Any other amendments shall be neutral to or strengthen the trails and conservation purposes of this Agreement. In either case, amendments shall not affect the perpetual duration of this Agreement. This Section shall be expressly subject to the termination and extinguishment provisions of Section 20, above. Any amendment must be in writing, signed by RFRItA and the Board. and recorded in the records of the Clerk and Recorder of the counties in which the Corridor is located. 33.0 Compliance with "Railbanklng" St~t_ut~ The p~Xies acknowledge that the Corridor is intended to be utilized in a manner which will allow it to be maintained as a viable rail transportation corridor as provided for in 16 U.S.C. § 1247(d) and all regulations promulgated thereunder. The Board agrees not to take any action that would be inconsistent with the requirements of or violate 16 U.S.C. § 1247(d), the regulations promulgated thereunder or any other statute or regulation pertaining to or affecting the title to the Corridor in the hands of RFRHA. RFRHA/GOCO Agreement Page 17 of 22 34.0 Approvals by the Board. The Board and RFRHA agree that in eachinstance where the Board is either required or has the fight to review and give its approval or consent, no such review, approval or consent shall imply or be deemed to constitute an assumption by the Board of any responsibility for the design or construction of building elements, including but not limited to the structural integrity or life/safety requirements or adequacy of budgets or financing or compliance with any applicable federal or state laws, or local ordinances or regulations, including any applicable environmental laws. All reviews, approvals and consents are for the sole and exclusive benefit of RFRHA as required by this Agreement, and no other person or party shall have the fight to rely thereon. 35.0 Exercise of Location/Relocation Rights. RFRHA covenants and agrees that RFRHA will exercise (i) its powers of approval over construction plans, and (ii) all related powers, to require that facilities located under the authority of: a. that certain agreement known as the Easement Agreement between Denver & Rio Grande Western Raikoad Company and Southern Pacific Telecommunications Company, as amended, and b. that certmn agreement known as the Subeasement Agreement dated September 29, 1993, between Qwest Communications Company and U.S. West Communications. Inc., as amended be located (or relocated, as the case may be) underground or outside of the Corridor (other than the "wye" area), as defined in the Purchase and Sale Agreement dated as of October 3, 1996, between RFRHA and the sellers: provided, however, the exceptions which follow apply. If all of the conditions (i), (ii) and (iii) below are met. facilities may be located above ground and on the Corridor: (i) the location of the facility does not unreasonably interfere with or impair RFRHA's (and/or RFRHA's constituent members') existing or future ability to construct and operate a trail and mass transit system within the Corridor; (ii) any new facilities placed in the ConSdor after June 30, 1997, will be limited in number to no greater that thirty-six (36) facilities, placed in nine (9) or fewer locations along the Corridor, and have similar dimensions and are not greater in size than as provided under Exhibit C appended to the First Amendment to the aforementioned Subeasement Agreement (approximately 5'X5'XS' with accompanying pad size no greater than 6' X 8); and (iii) the cumulative impact from the number of facilities placed in the Corridor would not substantially impair the Corridor for mass transit, trail, open space or wildlife habitat purposes. The parties agree that underground facilities located within a single ten foot (10') wide longitudinal easement in the Corridor, including reasonable RFRHA/GOCO Agreement Page 18 of 22 surface facilities limited in size and number as provided in the aforementioned Exhibit C. shall not be deemed to substantially impair the Corridor for the identified purposes. Surface facilities may also be located in the Corridor (a) if they comply with exceptions (i) and (iii) above, and Ih) are comparable in size and nature to facilities existing on the Corridor as of June 30, 1997. 36.0 Current Year Obligations. The pames hereto recognize that Article X. Section 20 of the Colorado Constitution places certain limitations on the fiscal year,spending of local governments. For purposes of such provision, the parties hereto agree and declare that RFRHA shall not be considered to be an entity separate from the individual Governments which have created it and any and all fiscal year spending by RFRHA. shall be treated solely as the fiscal year spending of the individual Governments. The receipt and expenditure of grants and any other revenues not contributed by the individual Governments shall .be treated solely as the fiscal year spending of the individual Government appointed as agent for the administration of such revenue or grant. Pursuant to Section 29-1-603(1), C.R.S.. a separate audit of RFRHA shall not be required since its financial activities will be reported in the audits of the individual Governments. The Parties also acknowledge and agree that any payments provided for hereunder by RFRHA or any requirements for future appropriations by RFRHA shall constitute only currently budgeted expenditures of individual Governments that have created RFRHA. RFRHA's obligations under this Agreement are subject to the individual Government's annual right to budget and appropriate to RFRHA the sums necessary to meet the obligations set forth in this Agreement. No provisions of this Agreement shall constitute a mandatory requirement in any ensuing fiscal year beyond the then current fiscal year of the individual Governments. No provision of this Agreement shall be construed or interpreted as creating a multiple fiscal year direct or indirect debt or other financial obligation of any individual Government or RFRHA within the meaning of any constitutional or statutory debt limitation. This Agreement shall not directly or indirectly obligate any individual Government or RFRHA to make any payments beyond those appropriated by any individual Government's then current fiscal year. No provisions of this Agreement shall be construed to pledge or create a lien on any class or source of any individual Government's monies, nor shall any provision of this Agreement restrict future funding for any individual Government ar RFRHA or create any obligation of payment from any class or source of any individual Government's or RFRHA's monies. 37.0 Subsequent Transfers/Covenant Running with the Land. RFRI-IA and the Board intend that the foregoing Agreement constitute a covenant running with the land held by the Board in gross, which shall inure to the benefit of, and bind, the parties' respective successors and assigns. RFRHA' s obligations under this Agreement shall automaticallybe deemed assigned to any successor owner of al/or a portion of the Corridor. RFRHA agrees to incorporate the terms of this Agreement in any deed or other legal instrument by which it divests itself of any interest in all or a portion of the Corridor, including, without limitation, any license, easement or leasehold interest. RFRHA further agrees to give written notice to the Board of the transfer of any interest at least thirty (30) RFRHA/GOCO Agreement Page 19 of 22 days prior to the date of such transfer. The failure of RFRHA to perform any act required by this paragraph shall not impair the validity of this Agreement or in any way limit its enforceability against RFRHA or any successor owner of all or a portion of the Corridor. ROARING FORK RAILROAD HOLDING AUTHORITY Date: By: Tom Newland. Executive Director STATE OF COLORADO j )SS. COUNTY OF ) Subscribed, sworn to and acknowledged before me this day of 2001. by Tom Newland. SEAL My Commission Expires: Notary Public APPROVED AS TO FORM: Date: ROBERT M. NOONE, P.C. By: Robert M. Noone, #12452 1001 Grand Avenue, Suite 207 P.O. Drawer 39 Glenwood Springs, CO 81602 (970) 9454500 Phone (970) 945-5570 Fax RFRHA/GOCO Agreement Page 20 of 22 GREAT OUTDOORS COLORADO Date: By: Lise Aangeenbrug, Executive Director STATE OF COLORADO ) )SS. COUNTY OF ) Subscribed. sworn to and acknowledged before me this day of 200 I, by Lise Aangeenbrug. SEAL My Commission Expires: Notary Public APPROVED AS TO FORM: Date: ISAACSON, ROSENBAUM, WOODS AND LEVY, P.C. By: William Silberstein, # 633 17m Street. Suite 2200 Denver, CO 80202 (303) 292-5656 Phone (303) 292-3152 Fax ASPEN VALLEY LAND TRUST Date: By: Reid Haughey, Executive Director STATE OF COLORADO ) )ss. COUNTY OF ) Subscribed. sworn to and acknowledged before me this day of 2001, by Reid Haughey. SEAL My Commission Expires: Notary Public APPROVED AS TO FORM: Date: HOLME, ROBERTS & OWEN, LLP By: Lawrence L.Levin, # 1700 Lincoln Street, Suite 4100 Denver, CO 80203 (303) 861-7000 Phone (303) 866-0200 Fax RFRHA,/GOCO Agreement Page 22 of 22