C150150 Afidavit

• Contract/PO #: C150150
• Contractor Name: Lower Arkansas Water Management Association
• Contract Type: Loan
• Water District: 67
• County: Bent
• Loan Projects - Doc Type: Contract Documents

11/18/2003 14:32

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71 93362422

LAWMA

PAGE 02

lOWER ARKANSAS WATER MANAGEMENT A~
P. O. Box 1161
Lamar, Colorado 81052
[phone] (719) 3362422 FAX

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November 14, 2003

Annual Meetin2 Notice

TO MEMBERS AND STOCKHOLDERS OF THE LOWER ARKANSAS WATER
MANAGEMENT ASSOCIATION:

The annual meeting of the Lower Arkansas Water Management Association will be held
Tuesday, December 2, 2003. The meeting will be held at the Cow Palace in Lamar,
Colorado at 10:00 A. M.

The purpose of the meeting is to vote on an assessment for the year, to elect three
Directors to the Board of Directors for three-year terms, to consider the proposed
purchase of one~half of the Keesee water rights as described in more detail below, and
to conduct other such business as may come before the meeting. Representatives from
the State of Colorado may be present to update the members on Kansas \I. Colorado
and other Arkansas River issues.

LAWMA entered into a lease-purchase agreement for the lease of the full Keesee water
right for 2003 and option to purchase of one-half of the Keesee water rights in early April
this year. The lease payment made will be applied to the purchase price assuming that
the purchase closes, and as a further benefit, the lease of the other half of the water
rights is guaranteed for 2004 at no extra cost In July, the Colorado Water Conservation
Board (CWCS) approved LAWMA' S request for a loan In the amount of $ 2,272,500.00
(this amount includes financing the CWCS' s 1 % loan service charge) for the purchase
of one-half of the Keesee water rights, subject to the following conditions: (1) LAWMA' S
shareholders must authorize the Board of Directors to enter into the CWCS loan contract
in the amount of $2,272,500,00 for the purchase; and (2) LAWMA' s shareholders must
. approve, in concept, the required share assessment levels necessary to cover
LAWMA's future expenses and, specifically including, all CWCB loan payments.
Furthermore, the CWCS is requiring that LAWMA' s quorum requirement for-approval of
these two items be increased to 50% of the outstanding shares of stock represented by
shareholders present or by proxy at the upcoming annual meeting and that approval of
these two items be obtained from at least 2/3 of the 50% quorum. Accordingly, the
shareholders will \late on each of these two items at the annual meeting.