C153808 Contract Member Shares

• Contract/PO #: C153808
• Contractor Name: Arkansas Groundwater Users Association
• Contract Type: Loan
• Water District: 14
• County: Pueblo
• Bill Number: ARA
• Loan Projects - Doc Type: Contract Documents

Jan-20-9a 02:13P IDEAL VALLEY REALTY LTD

719 462 5755

P.02

DRAFT

AGREE:\1ENT

THIS AGREEMENT made this day of , 19_, between C, R.
EV ANS, hereinafter referred to as "Evans" and ARKANSAS GROUNDWATER USERS
ASSOCIA TION, hereinafter referred to as "AGUA",

WITNESSETH

THAT WHEREAS, Evans is the owner of 2,883 shares of stock in the Excelsior
Irrigating Ditch Company, hereinafter referred to as "Excelsior"; and

WHEREAS, SOlithwest Ready-Mix owns 450 shares of stock in Excelsior; and

WHEREAS, Evans is desirous of selling 1,007 shares oihis stock to AGUA.

NOW, THEREFORE, for the considerations hereinafter named, the parties agree as
follows:

1. That Evans shall sell and AGUA shall buy 1.007 shares of stock in Excelsior for
the sum of $650,000.00. It is understood that AGUA at its expense is having the water rights
appraised by Ron Blachley, and if the appraisal is $650,000.00 or more, that will be the purchase
price. If the appraisal is less than $650,000.00, it is agreed that the purchase price be adjusted to
the appraised price.

2. Payment shall be cash at closing, but it is understood and agreed that the closing
is contingent upon AGUA obtaining a loan from the Colorado Water Conservation Board in an
amount sufficient to complete the purchase. AGUA understands that the 1,007 shares of stock
were previously encumbered to the Colorado Water Conservation Board on a loan to Excelsior to
compete diversion structures and understands that the 1,007 shares may continue to be
encumbered by the Colorado Water Conservation Board for the previous loan as well as the new
loan.

3. Evans and Southwest Ready-Mix understand that AGUA's purchase of the water
will be to use the water for augmentation purposes for the benefit of AGUA's members. Evans
and Southwest agree not to oppose the use of the water tor augmentation purposes and not
oppose any plans that AGUA may have for augmentation that would be filed with either the
Water Court or the State Engineer's office. Evans, Southwest, AGUA and all successors agree
to be obligated to use their water in an intensive way so as to create the largest possible amount
of water which can be used for augmentation and irrigation,

4. If the sale is completed, the parties hereto agree to amend the by-laws of the
corporation to provide the following:

(a) That all structures in the canal for the diversion to a particular lateral shall
be the property of and the rcsponsibility for maintenance of the owner of the lateral.