AGREEMENT BETWEEN

KENAI PENINSULA BOROUGH,

Q-1 CORPORATION,

AND DENALI PROPERTY II, LLC

To effectuate the requirements of KPB Ordinance 2001-13 Kenai Peninsula Borough (KPB), Q-1 Corporation (Q-1), and Denali Property II, LLC (Denali) hereby agree as follows:

1. On or before the date of repurchase, Denali will provide recorded documentation establishing that Denali has obtained repurchase rights for parcel 06012016 (the property) in accordance with AS 29.45.470; and

2. Denali will repurchase the property before September 1, 2001, through payment to KPB, as tax collector for the city and the borough, the full amount of taxes due on the property as though the property continued in private ownership to the date of repurchase. The amount of taxes due on parcel 06012016 through May 16, 2001, is $39,209.38. The amount allocated the City of Soldotna is $6,286.56. The amount allocated to KPB is $32,922.82; and

3. Upon fulfillment of the requirements of Ordinance 2001-13 and of the terms of this agreement, KPB hereby waives all penalties and interest on the taxes owed on the property to the date of repurchase. [In the event that the waiver of penalty and/or interest on the property is challenged as invalid or illegal and/or found by a court of law to be invalid or illegal, either prior to or after repurchase, Q-1 covenants and agrees to hold harmless and indemnify KPB from and against all liabilities, claims, suits, demands, costs, and all charges and actual full attorneys' fees occasioned as a result of that waiver and by defense of the allegations(s) and shall also pay to KPB immediately upon demand by KPB the full amount of any waived penalty and/or interest found, by a court having jurisdiction over the matter, to be invalid or illegal. This provision shall not be construed as an indemnity for any claims, suits, demands, costs, fees or liabilities occasioned by a first party suit by KPB against Q-1 or Denali directly]; and

4. Denali will use its best efforts to secure expedited cleanup of the contamination of the parcel in compliance with all applicable laws and regulations.

KENAI PENINSULA BOROUGH Q-1 CORPORATION

Dale L. Bagley, Mayor Chuck Kim, President

Dated: Dated:

ATTEST:

(1)

Missey Horn, Secretary

Borough Clerk Dated:

APPROVED AS TO FORM AND DENALI PROPERTY II, LLC

LEGAL SUFFICIENCY:

Borough Attorney Chuck Kim

ACKNOWLEDGMENTS

STATE OF ALASKA )

) ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this ____ day of ____________, 2001, by Dale Bagley, Mayor of the Kenai Peninsula Borough, an Alaska municipal corporation, for the corporation on behalf of the corporation.

_________________________________

Notary Public for State of Alaska

My Commission Expires: __________

STATE OF ALASKA )

) ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this ____ day of ____________, 2001, by Chuck Kim, the President of Q-1 Corporation for and on behalf of Q-1 Corporation.

_________________________________

Notary Public for State of Alaska

My Commission Expires: __________

STATE OF ALASKA )

) ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this ____ day of ____________, 2001, by Missey Horn, the Secretary of Q-1 Corporation for and on behalf of Q-1 Corporation.

_________________________________

Notary Public for State of Alaska

My Commission Expires: __________

 

STATE OF ALASKA )

) ss.

THIRD JUDICIAL DISTRICT )

The foregoing instrument was acknowledged before me this ____ day of ____________, 2001, by Chuck Kim, the _______________________ of Denali Property II LLC for and on behalf of Denali Property II LLC.

 

_________________________________

Notary Public for State of Alaska

My Commission Expires: __________

1.

Second corporate officer.