OCR Text |
Show -5- ing due on said outstanding and unpaid bonds after August 1, 1925. The number of shares of the capital stock of first party now subscribed for, outstanding and issued is 41,691; the first party agrees that, while this contract is in effect, it will not permit additional shares of its stock to be sold or issued, except to meet the irrigation requirements of lands actually irrigable, or to become irrigable, from its said system, on the basis of one share to the acre, and then only in accordance with the uniform regulations as to price, terms of payment and use of water now prevailing. 3. Pending the consummation of this sale, the first party agrees to exercise all reasonable diligence to preserve and protect its water rights and entire water system and all operative properties covered by this contract in a good state of repair, and to preserve the same substantially in the status that they now are, and no sale or other disposition of any part of the properties covered by this contract shall be made, except that the first party reserves the right to make such extensions, alterations or improvements, as well as other changes in the system as may be required in the ordinary course of the operation of the water system, as well also as the right to dispose of equipment or other personal properties in the ordinary course of conducting operations, but equipment of substantially the same value as now exists shall be maintained until the time this purchase is consummated. 4. It is expressly understood and agreed that this contract is made upon the express understanding and agreement that the obligation of the first party to sell, or the second party to purchase, is subject to the following conditions : |
Source |
Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : California exhibits. |