AGREEMENT BETWEEN the COMPANY NAME and the BOARD OF REGENTS of the NEVADA SYSTEM OF HIGHER EDUCATION on behalf of the DESERT RESEARCH INSTITUTE This contract made and entered into as of _____ day of January, 2009 by and between COMPANY NAME (hereafter called "SPONSOR"), and the Board of Regents of the Nevada System of Higher Education on behalf of the Desert Research Institute, (hereinafter called "DRI"), a non-profit institute organized and existing under the laws of the State of Nevada. WITNESSETH THAT: WHEREAS, DRI is willing and able to make facilities and qualified personnel available to conduct the desired research; NOW, THEREFORE, the parties hereto mutually agree as follows: I. STATEMENT OF WORK DRI, for a period from January 1, 2009 to June 30, 2009, shall perform the duties/tasks in accordance with the DRI proposal dated December 30, 2008, a copy of which is attached and by reference made part of this agreement as Exhibit “A”. II. CONSIDERATION AND PAYMENT This procurement is to be considered a cost reimbursement contract for a total estimated cost of Fifteen Thousand Four Hundred Sixty-Four Dollars ($15,464.00). Costs are to be established as outlined in the attached DRI cost proposal. DRI agrees to use reasonable efforts to perform the research herein and all obligations under this contract within the total estimated cost. SPONSOR shall not be obligated to reimburse DRI in excess of the contract price, unless and until SPONSOR has notified DRI, in writing, that such contract price has been increased and this contract amended to provide for such an increase. DRI shall invoice SPONSOR on a monthly basis in the format contained in the DRI Cost Proposal. Payment is to be made by SPONSOR to DRI no later than 30 days after receipt of invoice. III. TITLE TO PROPERTY If equipment not already owned by DRI and available for this research shall be required, such additional equipment, with the approval of the SPONSOR, shall be built or purchased by DRI and the cost thereof shall be reimbursed by SPONSOR under this contract. DRI shall retain title to all property purchased under this agreement. IV. PATENTS 1 The parties agree that DRI will own all right, title and interest in and to any patent, trade secret or other proprietary rights that develops out of or as a result of the research called for in this agreement. DRI agrees to grant SPONSOR a perpetual, non-exclusive, royalty-free license to use throughout the world such patent, trade secret and proprietary rights. V. RELATIONSHIP OF PARTIES It is agreed and understood that DRI is acting as an independent contractor in the performance of any and all work thereunder and, as such, has control over the performance on such work. VI. INSURANCE The Board of Regents of the Nevada System of Higher Education is self-insured in accordance with the limitations of NRS 41.0305 to NRS 41.039. DRI shall maintain self insurance with limits of liability as set forth in NRS 41.0305 to 41.039, and Workers’ Compensation coverage as required by Nevada State Law, during the term as defined in this agreement. VII. PROJECT MONITORSHIP The project will be monitored by Dr. Jim Thomas, project manager. VIII. PUBLICATIONS It is understood that the major purpose of the work performed by DRI is to obtain information that may be made available to the public and industry through publications, conferences or other means of public disclosure. Any announcement or publication of work under this agreement by DRI shall be reviewed by SPONSOR and shall recognize and give credit in the text and on the title pages to the sponsorship by the SPONSOR. IX. LAWS This Agreement shall be construed in accordance with and governed by the laws of the State of Nevada. IX. REPORTS/DELIVERABLES Final results will be provided by the end of the project. (Remainder of page intentionally left blank.) 2 IN WITNESS THEREOF, the parties hereto have caused this contract to be executed intending to be legally bound thereby, as of the year and day first herein above mentioned. COMPANY NAME By: Title: Address: Date: THE BOARD OF REGENTS OF THE NEVADA SYSTEM OF HIGHER EDUCATION on behalf of the DESERT RESEARCH INSTITUTE By: Jenny Frayer Title: Director of Sponsored Projects Address: 2215 Raggio Parkway, Reno, NV 89512-1095 Date: 3 EXHIBIT A Desert Research Institute Scope of Work for Dry Valley Chloride Mass Balance Revised Recharge Estimates James Thomas Desert Research Institute December 30, 2008 Overview: As part of the Technical Working Group for the SPONSOR Water Project in Bedell Flat and Dry Valley, Nevada the Desert Research Institute (DRI) has been tasked with revising the Dry Valley chloride mass balance recharge estimates presented in DRI publication No. 41191. The title of this publication is “Estimated Groundwater Recharge to Dry Valley, Northwestern Nevada, using the chloride mass balance method” and the authors are James Thomas and William Albright. Washoe County Responsibilities: Updating the original recharge estimates be a collaborative effort with Washoe County and the Technical Working Group. Washoe County personnel will provide new precipitation estimates for their 12 precipitation sites in Dry Valley, collect new water chemistry data for springs in the recharge areas of Dry Valley, and provide other information as needed to update the original chloride mass balance recharge estimates. DRI responsibilities: DRI will lead the effort in developing updated chloride mass balance recharge estimates that incorporate new precipitation, water chemistry, and water isotopic data collected since the original DRI publication in December, 2003. As stated in the previous paragraph the water chemistry and stable isotope data will be collected by Washoe County and analyzed by DRI as part of this updating effort. DRI personnel will be responsible for producing a new precipitation map of Dry Valley using the Washoe County precipitation network data (normalized to longer nearby records) and the most recent PRISM precipitation map to help in contouring the precipitation data. From this new precipitation contour map, DRI will calculate total precipitation for recharge areas of Dry Valley. DRI will analyze the filtered water samples for chloride concentration and for stable isotopes (deuterium and oxygen-18). The new precipitation values will be used with chloride data (both new and previous chloride data) to calculate a new range for the chloride mass balance recharge estimate for Dry Valley. Other considerations: Stream flow rates and chloride concentration data will be collected in locations near the consolidated rock-alluvial valley fill boundary where any surface water flows off of recharge areas. DRI Cost Proposal Title: Update Dry Valley Recharge Estimate Client: Intermountain Water Supply Ltd. Project Period: January 1, 2009 to June 30, 2009______________________ Rate SALARIES Thomas, Jim Minor, Tim Units Amount 200.56 155.28 20 20 4,011 3,106 0 7,117 17.41 169.68 84.50 16.90 70 0 70 70 1,218 0 5,915 1,183 30 8,347 TOTAL SALARIES OTHER COSTS Lab Analyses: Chloride Suite Deuterium and Oxygen-18 filters for sampling Xerox, printing, misc. expenses TOTAL OTHER COSTS TOTAL COSTS 15,464