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Annual payniern for the %valer service described herein sli; II be determined by the Roardof Diieelors of the District. The initial <br />annual payment shall be made in full, within thirty (30) days alter the date of notice In Ilse Applicant that the initial payment is doe. Said mice <br />will advise the Applicant, among other things, of lire water delivery) -ear to which the initial payment shall apply and the priee which is applicable <br />to [hot year. <br />Annual payments for each year dicrcancrshall ht: due and payable by the Applicant on or before cacb January 1. 1 ren annual <br />payment is uol etude by ilia due date a fl at SSO late fee will be assessed. Final writ less notice prior to cancellation will be scot certified mail, return <br />receipt requested, to the Applicant at such address as iney be designatud by the Applicant in writing or set forth in this Contract or Appliea6on. <br />Water use for any part of a water year shall require payment for Ilse calire water year. Nothing herein shall be construed so as in prevent the <br />District from adjusting the annual rate is its sole discretion for future years only, <br />If payment is not made within filleen (15) days after (be: dateofsnid written notice, Applicant shall at Districi'b sole optioahave <br />no further right, title or interest uuder this Contract without further notice, and delivery may be immediately curtailed. The allotment ohvater, as <br />bereiu trade, may be transferred, leased, or citherivise disposed oral the discretion of the Board of Directors of The District. <br />Upon cancellation of this water allotment Contract with the District, the District shall nolify the Division of Water Resources <br />offices in Denver and Glenwood Springs.'fhe Division of N%Izlcr Resources may [lien order cessation of all water use. <br />7. Additional.FSep ep371 Costs: Applicant agrees to defray any expenses incurred by the District in conricction wills Ilse <br />allotment of waler rights hereunder, including, but not limited to, reimbursement of legal and enginceringcosis incurred iu conni'cliou Willi nriy <br />water rights and adjudication necessary to allow Applicant's use of such allotted water rights. <br />8. ssienrncpt-. This Contract shall not inure to ilia bcltefit of the heirs, successors or assigns of- kpplicant, willtout the <br />prior writlen consent of the Dishices hoard of Directors. Any assignment of Applicant's rights under Ibis Contract shall be subject lo, and must <br />comply with, such requirements as the District may hereaner adopt regarding assignment of Contract rights and the asiumptipn of Contract <br />obligations by assiguees and successors. Nothing herein shall prevent successors to a portion Of Applicant's property from applying to Ilia District <br />for individual mud separate allotment Conlracts. No assignment shall be recognized by the District except upon completion and filing of proper <br />forms for assignment and change of oivoership. <br />In this event tbc water a) lotled pursuant to this Contract is to be used for the benefit Orland which is 119W.617 Will subsequently be <br />subdivided or held in separate ownership, the Applicant may only assign the Applicant's rights hereunder to: 1) No m6re thari three separate <br />owners ell of whom shall be party to a tacll sharing agreement satisfactory to the District; or 2) A homeowners association, water district, water <br />and sanitation district or other special district properly organized aid existing under the laws of the stale or Colorado, end thin, only ifsuch <br />parties, association or special district establishes to the satisfaction of the District that it has the ability and aulhority to perfonn'tbe Applicant's <br />oblieations under this Contract. In no event shall the owner of a portion, but less than all, of the Applicant's property to be solved under this <br />Contract have may rights hereunder, except as such rights may exist pursuant to a well sharing agreement or through a homeowner's association or <br />special district as provided above. <br />Upom tbo sale of The real property to which this Contract pertains, Applicant shall makebuyeraware of this Contract and proper <br />(onus for assignment and change of ownership must be completed. <br />3 <br />