Ronald B. and Annette C. Talmage - Page 42




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               In accordance with the original terms contracted by the                
               late, Tsutomu Seki (former Chairman of NCPL) with                      
               regards to employment of Ronald B. Talmage, and                        
               specifically the terms of administration and joint                     
               development of the property known as RiverCliff Farm *                 
               * *, we the undersigned hereby confirm and further                     
               agree to the following clarification, further                          
               definition and formalization of these relationships:                   
               (1) It is hereby reconfirmed that the original intent                  
               of the development of the RiverCliff Farm property was                 
               to be a 50/50 joint-venture between Ronald and NCPL,                   
               Ronald providing the hands-on and resident                             
               administration and some original capital, and NCPL                     
               providing required capital thereafter.                                 
               (2) Further, it is hereby reconfirmed that in                          
               accordance with advice from counsel, it was determined                 
               that during the development and construction phase,                    
               particularly as it pertains to the regulatory                          
               permitting process, that initially Ronald and his                      
               spouse would title the property in their name, and as                  
               “nominee” for NCPL’s portion.  It is hereby reconfirmed                
               that in accordance with this process, NCPL capital                     
               participation would initially be in the form of debt,                  
               but with direct payments to invoices regarding actual                  
               construction costs.  It is hereby agreed that the                      
               intent to this plan was to convert the debt to equity                  
               at an appropriate time, as deemed most suitable to the                 
               regulatory environment, phase of completion of the                     
               project and any other extenuating circumstances that                   
               might trigger this conversion to equity.                               
               (3) Further, Ronald has since undergone challenges with                
               divorce and the resulting exposure of confidential matters             
               and more recently even resulting in audit by the IRS.                  
               (4) Accordingly of recent, counsel has advised the parties             
               that the current regulatory environment within the Columbia            
               River Gorge National Scenic Area, and more particularly the            
               Land Use Planning Department of Multnomah County, has been             
               greatly eased as compared to the conditions at the time of             
               initiation of development at the RiverCliff Farm property.             
               (5) The undersigned have therefore determined that it is now           
               advisable to proceed to exercise the NCPL right of                     
               conversion to equity and formalization of the title position           







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Last modified: March 27, 2008