AZ vs. CA:07 California Exhibits, Vol. VII; Nos. 326-370

page 11

-11- ten agreement, wherein it agreed to sell and convey to Palo Verde Irrigation District all of its irrigation system, irrigation works and structures, water rights, rights of way and easements, dredges, implements, tools, machinery and all of its real and personal property, excepting only: (1) All notes, mortgages, deeds of trust, book accounts or other accounts receivable, and its books, papers and records; (2) All money or cash on hand or on deposit in banks; and (3) One hundred thirty-eight (138) acres of land situate in the Palo Verde Valley, Riverside County, California, not connected with and not relating to the said irrigation system; for a purchase price of an amount equal to (a) $27.50 for each share of its capital stock which was or might be subscribed for, outstanding or issued at twelve o'clock noon on August 31st, 1925, payable in lawful money of the United States; (b) an additional amount of $125,-000.00 lawful money of the United States; and (c) that said Irrigation District should, as part of said purchase price, in writing, assume, promise and agree to pay at or before the time it shall become due, respectively, the balance of the principal remaining unpaid of the outstanding and unpaid bonds of said Mutual Water Company amounting to the sum of $350,000.00, together with all interest becoming due on said outstanding and unpaid bonds after August 1st, 1925; And Whereas, said Mutual Water Company did, under date of July 1st, 1925, make and enter into a supplemental and modifying agreement with said Irrigation District,