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Return to: Alan F. McCormick Garlington, Lohn and Robinson, PLLP 199 West Pine P.O. Box 7909 Missoula, MT 59807 WATER LINE EASEMENT FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the undersigned owner of the real property herein described, City of Missoula 435 Ryman Missoula, Montana 59802 (“Grantor”) does, on this day of 2009, hereby grant and convey unto Stockyard Road Investments, LLC PO Box 2060 Sun Valley, ID 83353 (“Grantee”) and its successors and assigns, a perpetual easement across, over and through certain real property upon the terms and conditions as follows: 1. Grant of Easement. Grantor hereby grants unto Grantee a non-exclusive water line easement (the “Easement”) as defined herein over and across Grantor’s real property identified as Park 7 of Pleasant View Homes No. 2, Phase III, as recorded in Book 26 of Plats, Page 17 (01/16/2003), records of Missoula County, Montana (the “real property”) as follows: A 30-foot wide water easement as depicted on the attached Water Easement Exhibit. 2. Purpose and Use. The purpose of the Easement shall be to provide Grantee, its successors or assigns, including Mountain Water Company of Missoula Montana, the right to construct, maintain and repair a water main line, together with any necessary fixtures and appurtenances to convey potable water over, across and through the real property encumbered by the Easement, together with the right of ingress and egress to permit said construction, maintenance and repair and for no other purposes. Grantor shall have no obligation to construct, maintain or repair the water main within the Easement. Grantee shall, at its sole expense, repair and restore any land disturbed by the installation, maintenance, and repair of the water line to the original or better condition of the real property. The parties acknowledge that Grantee intends to contract with Mountain Water Company for the installation of a water main extension within the Easement and Mountain Water Company, its successors and assigns, shall have the same rights and responsibilities as Grantee. ---PAGE BREAK--- 3. Compliance with Laws. In exercising the Easement rights, Grantee shall secure all permits and comply with all applicable laws, rules and regulations of any public authority relating to such use and shall keep the Easement free from liens arising in any manner out of the Grantee’s activities. 4. Binding Effect. The Easement granted herein is for the benefit of the above-described Grantee, its successors and assigns, which at present includes Mountain Water Company, shall run with the land and shall be binding upon and inure to the benefit of the parties hereto, their respective heirs, personal representatives, successors and assigns. 5. Enforcement. In enforcing any rights hereunder, the parties shall be entitled to the remedies of specific performance and injunctive relief. This Agreement may be enforced by any owner of a parcel subject to this Agreement. In the event of any litigation to enforce this Agreement, the prevailing party shall be entitled to recover costs and attorneys’ fees from the non-prevailing party or parties. 6. Entire Agreement. This Agreement shall constitute the entire Agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. IN WITNESS WHEREOF the parties have executed this Agreement on the date first referenced above. GRANTOR ATTEST: City of Missoula By John Engen, Mayor City Clerk GRANTEE Stockyard Road Investments, LLC By: David Manookian, Authorized Member STATE OF MONTANA ) : ss. County of Missoula ) This instrument was acknowledged before me on this day of 2009 by John Engen, Mayor, City of Missoula. Printed NOTARY PUBLIC FOR THE STATE OF MONTANA Residing at My Commission ---PAGE BREAK--- STATE OF ) : ss. County of ) This instrument was acknowledged before me on this day of 2009 by David Manookian as Authorized Member of Stockyard Road Investments, LLC. Printed NOTARY PUBLIC FOR THE STATE OF Residing at My Commission ---PAGE BREAK---