2000-02-21 Special Called Regular Meeting and Workshop Meeting

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2.4 Payment of Modification Project Cost and Recoupment Costs 2.4.1 After bids have been received but prior to contract award for the Modification Project and upon notice to Participants, Participants shall pay the Managing Participant the estimated cost of their pro rata shares of the Modification Project Cost, as well as their allocated Recoupment Costs. Participants' respective Pumping, Demand and Distribution Allocation Factors and estimates for the Modification Project Costs are shown on Participant Exhibits, together with allocated Recoupment Costs. Participants shall have the option of paying Modification Project Costs through an escrow account payable monthly for actual costs based on written demand from the Managing Participant Director. In the event a Participant is unable to make payment during this period because its financing has not yet closed, the Managing Participant Director on a case by case basis may grant the Participant a time extension to a date no later than the first month of the Participant's fiscal year beginning after the Managing Participant's Council Award of the construction contract for the Modification Project. If any such extension is given, Participant shall pay the Managing Participant interest for deferral of the principal amount at the Interest Rate. In the event bids exceed by 20% the estimated Modification Project Costs shown herein, the Participant Directors will confer with the Managing Participant Director concerning disposition of bids and any Participant (except the Managing Participant) will have the right to withdraw from participation in the Modification Project. A:1EWB 109'75.RV I L.D. File No. 80-99146-01 II February 9. 2000