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Mayer: <br /> <br />Trout: <br /> <br />Mayer: <br /> <br />Schimmin: <br /> <br />Mayer: <br /> <br />Dreher: <br /> <br />Schimmin: <br /> <br />Is there anything in the <br />Broomfield's agreement that would <br />contradict Louisville's rights. <br /> <br />There are really four (4) ways that <br />Broomfield can back out of that <br />agreement. The only instance in <br />which Broomfield gets the plans and <br />can build the project themselves is <br />when the District says they can't do <br />it for $18.4 million and Broomfield <br />says they can. There are three (3) <br />other instances in which the <br />contract simply terminates. In <br />December, once we get the bids, the <br />District has the option of telling <br />Broomfield we can't do it for the <br />price. <br /> <br />Our risk at that point <br />$300,000.00 through December? <br /> <br />is <br /> <br />That's correct, if Broomfield <br />terminates for one of these reasons <br />and we have to terminate, then <br />you're right. Your maximum risk is <br />the $300,000.00. <br /> <br />What protection do <br />Superior drops out? <br /> <br />we have if <br /> <br />If Superior backs out, the risk <br />would be an increase in Louisville's <br />cost for the Carter Lake to <br />Broomfield pipeline of $500,000.00. <br />That's the extent of the risk. <br /> <br />That's the "real world" risk. The <br />bottom line is that if Superior <br />backs out and that jeopardizes the <br />entire project for any reason, <br />either by increasing Louisville's <br />cost beyond the threshold that <br />you're willing to pay, or increasing <br />Broomfield's costs, then Louisville <br />would have a choice of either losing <br />what you had in the project up to <br />that point, because there no longer <br />is a project, or proceeding with the <br />increased costs. <br /> <br />6 <br /> <br /> <br />