PROJ00158

• Contract/PO #: C150098
• Contractor Name: Lake Henry Reservoir Company
• Contract Type: Loan
• Water District: 17
• County: Crowley
• Bill Number: HB 02-1152
• Loan Projects - Doc Type: Feasibility Study

GENERAl MANAGER

Section 6. The General Manager shall have the immediate supervision of and control over the reservoir
and other property of the Company, and shall supervise and direct the storage of water in the reservoir,
and the distribution of all waters among its stockholders; and he shall exercise such other powers, and
perform such other duties as the Board of Directors may, from time to time, confer upon him.

BOARD OF DIRECTORS

Section 7. The Board of Directors shall consist of five members who shall be residents of Colorado but
need not be stockholders of the Company, who shall be elected by the stockholders of The Lake Henry
Reservoir Company. Any three directors shall constitute a quorum for the transaction of any business.

It shall be the duty of the Board of Directors to exercise a general supervision over the affairs of the
Company; to receive and pass upon the reports of the Secretary, Treasurer and General Manager; to audit
all bills and accounts against the Company, and authorize and direct the disbursement of money; and to
direct the Secretary in correspondence.

The Board of Directors shall cause its various officers to make full exhibits and reports of their
departments, from time to time, and to prepare written reports for submission to the annual meeting of
stockholders.

Regular meeting of the Board of Directors shall be held at the Town of Ordway, Colorado, at the office of
the Company, on the second Wednesday in each and every month at the hour of nine o'clock a.m., and
special meetings of the Board of Directors may be held at any time in any of the counties designated in the
Articles of Incorporation in which said Company is authorized to do business, and at the place and time
designated in the call for such special meeting; such meeting may be called by the President or by any two
members of the Board, giving not less than twenty-four (24) hours notice thereof either personally or by
mail.

Any stockholder or any Director may, by signing the minutes of any meeting either of the stockholders or
of the Directors, assent to and ratify any and all things done at any such meeting, the same as if said
meeting had been regularly called and he or she had been present at and participating in the proceedings
of the meeting.

Meetings of the Board of Directors may be held at any time or place in which said Company is authorized
to do business, without notice; PROVIDED, that all the members of the said Board of Directors be present
at said meeting, or waive notice in writing before or after any such meeting.

VACANCIES

Section 8. Vacancies among the directors and in the offices may be filled by the Board of Directors at
any time by ballot.

SALARiES

Section 9. The Directors or officers of this Company shall not receive any compensation for their services
as such, except as herein provided. Directors may receive a per diem compensation in such amount as
authorized by the Board of Directors for time actually employed in the conduct of the business of the
Company, under the direction of the Board of Directors, to which said amount shall also be added the
actual expenses incident to the attendance upon such meetings or the performance of such duties;
PROVIDED, hO'Nllver, said directors may be employed in any other capacity and receive compensation
therefor as may be fixed by the Board. The officers of said Company shall receive such compensation for
their services and for such length of time and in such amount as the Board of Directors may. prior to the
performance of such service, expressly authorize; PROVIDED, that no Director or officer of said Company
shall receive double compensation for his services.

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