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. •~ ~ . Annual payment Eoc the water service deacrlbed herein shall be determined by the Board oC Directors of the Dietcict at a per acre-Coot rate. The initial annual payment shall be made, Sn Gull, within thirty (30) days otter the date al notice to the Applicant that the initial payment is due. Said notice will advise the Applicant, among other things, of the water delivery year to vhich the initial payment shall apply snd the price vhich le applicable to that year. Annual payments roc each yaec theceattec shall ba due and payable by the Applicant on or helots each January 1. IL an annual payment la net made by the due data, written notice thereol will be sent by the Dietcict to the Applicant at such address as may be designated by the Applicant in writing. (It no address has been so designated in writing, then said notice shall be sent to Applicant's address set Corth herein. Water use Loc any Part oL a voter year shall require payment foe the entire water year. Nothing heceln shall be construed so as to prevent the District Lram adjusting the annual Cate !n its sole discretion Lor Cutuca yeaca only. It payment Sa not made within ten (10) days attar the date of sold written notice, Applicant shall et Diatrict'e sole option hava'no Cucthec right,-title oc Lntereat under this contract vithobe Cucthec notice and delivery may b• immediately cucta11ed1 and the allotment oL water, as heceln made, may be tranatecred, leased, of othacviae disposed of at the dSaccatlon of the Board of Dicactoca of the Dietcict. 7. Secucit As security to the Dietcict, the Cocegolnq covenant o annual payments Ln advance of water delivery, will be fully mat by annual budget and appropriation of Lunde Ccom such sources of revenues as may be legally available to the Applicant. Aa additional security to the District, the Applicant will hold hacmleae the Dietcict and any person, corporation, queer-governmental entity, or other 9ovecnmental entity, Cor discontinuance Ln service due to the !allure of the Applicant to maintain the payments heceln contemplated on a cur cent heals. Applicant agrees to defray any out-oC-pocket expenses lncurced by the Dietcict in connection with the allotment o1 water _ rights heraundec, including, but not limited ta, cetmbucaement oL -- legal and engineering costa lncurced !n connection with any water tights and adjudication necessary to allow Applicant's use of such allotted water rights. 8. Aaal nment: This agcaement shall inure to the 6enetit oL the a ca, auccassoce oc assigns oL the parties hereto, except that na aaalgnment shall be permitted !n the event the water right allotted heraundec le to ba used Coc the 6enetlt of land vhich will ha subdivided or othervieo held oc owned in aepacate ovnerahip intaceata by two (Z) of mote ueaca of the water tight allotted heraundes. In no avant shall the owner oC e portion, but leas than all, of the Applicant's property to be aervad under this contract, have any cl9hts hereunder. Any aaalgnment of the Applicant's rlghta under thta contract shall ba subject to, and must comply with, suc4 cequicements as the Dietcict may hecaattar adopt regarding aaalgnment of contract rights and the aeaumption oL contract obllgatione by aaaignaee and aucceaaoce. Nothing herein shall prevent aucceaeoca to a portion of Applicant's Property Crom applying to the Dietcict for individual and separate allotment contracts. 9. Othec:RUlesr Applicant obeli ba bound by the pcovieiona of t a Hater anaervancy. Act of Colocadc~ by the colas and cegulatlana of the Board oL D1c6ctora of the Dlatrictr and all amendments thereat and supplements thereto and by all other applicable law. I~O. O~eratSon and Nn1n_tan_a_ne~ A~eamant, Applicant shall enter into an • Data on an a n enanca gcaemant' with the Distslet under tacma and conditions determined by the Bo std of Dicactoca of the Dietcict, LL and uhsn, Ch• Board of sold Olatrict -D-