Articles of Incorporation of the Paradox Valley Canal and Reservoir Company

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7. Class III stock as hereinafter defined shall be assessable for any and all purposes for which this company is organized. Class I and Class II stock shall be assessable for all purposes except enlargement or ex- tension. Assessment for the purposes of operation and maintenance shall be levied by a majority vote of the stockholders at the regular annual stockholders meeting, or any adjournment thereof, or any special meeting called for that purpose, or as otherwise provided by statute. Neither Class I stock nor Class II stock shall, be assessed for enlargements or extensions of the irrigation system, nor shall either of said classes of stock be permitted to vote upon the question of any such enlargement or extension or have any right therein. No assessments for enlargement or extension of said system shall be made except by a two - thirds (2/3) vote of all stockholders to be assessed therefor at any regular annual meeting or any adjournment thereof or any special, meeting called for that purpose. Assessments shall be equal on all stock, except as hereinabove pro- vided. No water shall be delivered to any stockholder until the assessments on his stock are fully paid. This corporation shall have a lien on all stock for amy assessments and no stock shall be transferred upon the books of the corporation until such assessments are paid, and if any assessments should remain delinquent for a period of more than three years, the board of directors may order the same sold for the payment thereof. Delinquent assessments shall draw interest at such -rate as the board of directors may fix, not to exceed, however, the rate of 12 per cent per annum for the first year and six per cent per annum there- after. a. After issuing all stock to those entitled thereto under present existing MBx and NCO contracts, no additional shares of Class III stock shall be sold unless and until the ability and capacity of the company to deliver water has been increased, and then only at the rate of one share of stock for each acre foot of increased capacity and ability to deliver. IPhrthermore, no such additional stock shall be sold except by a tiro- thirds (2/3) vote at any regular or special stockholders meeting called for that purpose, and such meeting by the same vote shall also fix the price at which said stock shall be sold.