-
l.
BYLAWSOF
CONSOLIDATED HON{E SUPPLY DITCH ANDRESERVOIR COMPANY
ARTICI,E IOFFICES
The principal office of the Corporation in the State of Colorado
shall belocated in cither the County of i-arimer or Weld. The
Corporation may halesuch other ofTices, cither rvitltin or rlithout
the stiltc of incorporation as theIloard of Directors may dcsignate
or as tlte business of the Corporltion mr1fronr lime tu timc
require.
dals prior to thc date on u'ltich thc plrticular aclion
rtquiritrg suclttletermination of stockltoldcrs is to be taken. Il
thc stock trans{'cr books arcnot closed and no record date is tlxcd
for thc dcterntination ol'stockhoklcrsentitlcd to notice ofor to
lotc at a mcclillg ofstockholdcrs' the datc on rihiclrnotice ofihe
tneeting is nmiled shall bc the rccord datc for such
detcrminatiortofstockholders. When a detcrminltion ofstockholdcrs
sntitled to votc al ltny
mecting of stockholdcrs has bccn macle as providcd in lhis
scction. sucltdetcrmination shall apply to any adjournment
thcrtol.
6. VOTII..C l-IS'lS.The olficcr or agcnt haling chargc ofthe
stock lrlnslcr books lirr sharcs oitltcCorporation shall make, al.
lcast 2 days bclbrc cach ntccting ol'stockholdcrs a
conrplcte list of thc stockholders entitlcd to votc at such
rllccting. {rr :ll)}adjournment thercof, arrangcd in irlphabctlcal
order, with the addrcss ol' lndthc nunrber of sharcs held by each,
rvhich list. for a ptriod of I dly ptior trtsuch mceting. shall be
kept on file at tlrc principal olficc ofthc fbrporalionand shall be
subject to inspcctiotl hv anv strlckholdcr at rny tinlc during
usttrlbusiness hours. Such list shall also be produccd and kcpt
open at ths tinle llndplacc of thc rnccting and shall bc subject to
inspection ol any stockholdercluring the rvholc tinte oftltc
nrceting. 'fhe original slock trlnslcr book shtll bcprinra ihcie
cvidcnce as to \yllo are thc stockholders enlitled to exanrinc
suchlist or translcr books or to vote at thc mecting of
siockholders.
7. QUORU)LAt any mocting of stockholdcrs thc mdority of {he
outstnnding shares of llteCorporation €ntitled to vote, rcpresented
in pcrson or by proxy' shallconititute a quoruln xt a nlecting ol
stockholders. ll' less thiut said nuntbcr ol'the outstmding sharcs
are reprcsentcd a1 a nlccting, a mljolity ofthc shnrcs
s0rcprcsented may acljoum thc nlceting lrom tirle to timc with{rut
furtltcr noticcAt such adjoumed meeling at rvhich a quorum shlll bc
prcscnt or tcprcsentcrl'any business rta) be transncted rvhich
might havc bccn translcled al thcnlceting as originally
notificd.'thc stockltnltlcrs prcseDl al a duly orgrniztdnreeting
mRy continuc to trrnsact busincss ulttil adjortmrnent'
notwithstln(lingthe rvithdrarval ofenorrgh stockhrllders to leavc
less tlt:rn a quontnr.
8. PI{O.\IES.At all meetings ofstockholdcrs, t stockholdcr nlily
vote by proxy exectttcd inrvriting b,v thi stockholtler or b)'the
stockltolder's duly authoriz'ct1 attorncy infact. Such proxy sh:rll
bc filed rvith thc Sccrctary ol'thc Corporation lrclirrc or
at ths lime of the nreeting.
,'\RTICLE IIS OCKIIOLDf TIS
.\NI{UAL }TEETINC.Thc date oftho ruutual mceting ofthe
stockholdcrs shall be set by thc Board olDirectors cach year, but
if the directors do not otltcnvise specif)', it shall beheld on the
second lvlondal of f)ecernber in each year, beginning rvith theycar
1980 at the hour ol 9:00 o'clock a.m., tbr the purposc ol
clectingdirectors and tbr thc transaction of such other business as
may conc bcforcthe mecting. Ifthe day fixed forthe lnnual meeting
shall be a legal holidaysuch meeting shall be held on lhe ncxt
succeeding business day. At the 1979annual meeting and o'ery third
year thereafter there shall bc elected by thcstockhokjcrs ofthe
Corporation, by rvritten ballot, three (3) directors, and forall
other ycars nvo (2) direclors, olthe Board composcd ofsevcn (7)
directorsfbr thc cnsuing thrce (3) ycars. One associate dircctor
shall bc elccted in 1980and one erch year thereatier for the
ensuing one (l) ycu.
2. SPECIAL II[EI-I;\GS.Speciai mcetings of the stockiolders, for
urv purpose or purposes, rutlessothenvise prescribed by statute,
may be callcd by thc Presidcnt or by thcclirectors, and shall be
called by the President at the request ofthe holders ofnot less
than 25 pcr cent of all thc outstanding shares of thc
Corporationentitlsd to vote at the mceting.
J. Pt,.,\CE OF IlE[,TING.'fhc dircctors may designate any place,
cither \''ithin or without the Statcunless othe$ise prescribed by
strtute, x the place ofnleeting for any annualmeeting or for any
spcciai meeting called by the directors. r\ rvliver of noticcstgncd
bl all stockhokicrs entitlcd to votc at a nrectirtg rnal dcsignatc
an)placc, eithcr rvithin or rvithout thc state unless othenvise
prcscribcd by starulc,
as thc placa for holding such meeting. Ifno designation is madc,
or ifa specialmecling be otherlvise called, the place ofnreetirrg
shall be the principal otficeolthe Corporalion.
,1. NOI lCE 0Ir IIEET'ING.Written or printed noticc stating thc
place, day'and hour ofthe meeting and, inca-se of a specirl
meetinc, the pilrpose or purposes for rvhich the meeting iscalled,
shall be delivered not l€ss than [0 nor more than 90 days befbrc
thcdate ofthe meeling, either personally'or by mail, by or at the
direction oflhePresidcnt, or the Secrctary, or the officer or
persons calling the mecting, toeaclr stockltolder oi rccord
entitled to vote at strch mcctirlg. If ntailed, strchnotice shall
be dcemcd to be dclivered rvhen deposited in thc United Statesmail,
adtlressed to the stockholder at ille stockholdcr's address as it
appcrrs onthe stock transfer books ofthe Corporation, rvith postage
thereon prepaid.
5, CLOSTNG OII TR,\NSFER BOOKS OR FIXING OTIRECORD D..\TE.For
the purposc ofdetermining stockioldcrs entitled to noticc ofol to
vote atany meeting of stockholdcrs or any ad..ioumntent thereol or
in order to make adetermination of stockholders lor any other
proper putpose, the directors ofthe Corporaticrn may provide that
the stock transler books shall be closed for a
stated period but not to exceed, in any casc, 20 da-vs. If thc
stock lransfcrbooks shall be closed ior lhe purpose of determining
stockholders entitled tonotice of or to vote at a meeting of
stockholders, such books shall be closedfor at least 20 days
immediately preceding such meeting. In lieu of closing thcstock
transfer books, the dircctors may fix in advmce a datc as the
record datefor any such de(cmtination of stockholders, such date
itr any case to be notmore than 20 dals and, in case of a meeting
of stockholders, not less than l0
o VO'I'ING.Ench sklckholdcr cniitlcd to votc in lccordancc rvith
the tcrms attd prol'isionsofthc Articlcs oflncorporation aniJ
tltese bylarvs shall bc entitled t{) ol}e vt}tc'in person or by
proxy, Ibr each sharc of stock cnlitled to vote hcld b)'
silchstockholdcr. A fr:rctional sharc shall be cntitled io a
fractionrl vote in tlle silnlcamount as tlre tiactionai shtrr:.
Upon the demtnd of any stockholder' tllc r?lcfor directors antJ
ttpon zury question bcfore tltc nreeting shall be by ballot.
r\llelcctions for tlirectors shall be decidcd by plLrrality votc:
all other qttcstirrtsshall be dcoirled by majority vote cxccpt as
othcrrvisc provided b)' the Afticlcsof Incorporation or the laws of
this State.
10. ORDEI{ OIT BUSIN[SS,The oriler ofbusincss at all mcetings
of'tlte stockholdcrs, shall be as follorvs
Roll Call.Proof of noticc of ttrccting or rvaivtr o f
ntrticettcatling of nrintrtcs of prcccdittg ntccting.
4. I{eports ofOillcers.5. I{cports olContntittccs6. Illection
oiDirectrrrs.7. Unfinishcd Busincss.8. Nerv Busincss.
11. INFOIIII'\t, I\C'[ION BY SI OCKIIOLI)ERS.
NIANNIiR OF i\C]'IN{;.
Unless othcnvisc providcd by lalv, any action required to bc
takcil xt tnlecting of the stockholders, or any othcr action lvhich
mty be i:rkcn at rmeetint of the stockholdcrs, mly be taken $ithoxt
a nlccting if a conscnt inrvriting, serting lbrth tlrc action so
takcn, shall be signcd by all of thcstockholders entitled to votc
with respcct to ihc subjcct matlcr thcrtol
t2.If a quorum is prescnt, the alfirmative vote ol the majorrty
ot thc shrrcsrcprcsented at thc mcetinB and cntitlcd to vote on the
subjcct nattcr shall bc
Page I of5
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thc act of lhc stockJtoldcrs, uniess thc \ ote of a grcalcr
proporti\)lt or ntlnlbcris otherwise requtrcd b)' sttttlte or b;
the Articles trf Iilcorporation or thcscb1 larvs.
I3. \'O]-ING OF SII.\RES BT'C[II,'T.\IIi STOCKIIOLDERS'Shares
st:rnding in the niule olanothcr corporltion or othcr entit)
rnal be voted by such ollicer, ilgcnl or prory as thc blll*s tlf
suchccrrporntion or thc orgrnizalion documcnt of such other entity
lna)' prescribe,or, ln the absencc of such provisiotl, as thc board
of dircctors of such otllercorporation or llte authorizcd
allthorit) of such other entitl may dctcrntint
Sharcs stanriing in the nlne ofa dcceased pcrson, a minor \\'ard
oran incofipctcnt pclson, nlav bc Iotcd by an administr:rtor,
exccLltor, courtappointed guardian or conservator, eithcr in pelson
or by' proxy \\'ithout atranslcr of such shares into the name of
srrch administrltor. exccutot. cou!1appointccl guardirn or
conscruator. Sharcs standing in thc narue of r tnlstcemiiy be votcd
by thc trustec, either in pcrson or b}'proxy, but no trustcc
sltlllbe entitletl !o vote shares hcld by the trustee lvithotli a
trirnsfer ofsuch sharcsinto tltc trustte's nrmc.
Shares strnding in thc namc ol a rcceiver nral' bc voterl bv
suchreceivcr and shsres held b1 or uttder thc control of a rcccir
er mav be voted b1
such reccivcr rvithout thc transfcr thcrcof irlto thi rcceivcr's
nantc if luthorityso to do bc conteincd itr an appropriltc order of
(llc court b;' nlrich suchrccciver rvas appointcd.
A str:ckholdcr nhose shares are plcdged shlll bc cntiti€d to
votcsuch sharcs until the shares ha!'e bcen transferred into thc
namc of thepledgce, and there;rlter tirc pledgtc shrll be entitled
to vot€ tllc sharcs sotr:rnsttrred.
Shlres o[stock held in cotenrncy by two or tnore pcrsons shall
bevotcri by only onc inriil'idual as dctcrtlincd by thc cotcnrnts'
and thcCorporation ma-v rcll on th€ \'otc of my onc of thc
cotcnrnts rvhosc nmcoppa"rr t,, corrcspond to the namc of onc of
the cotcnlnts on the rccor(ls Lrfthc Coryroration.
Neither shares of its orrrt stock belonging to this
Corporltiott, norsharcs ol its orvn stock hcld b! it in .r
litluciary capilclt-v, nor shilrcs ol its orlustock hcld b1 another
corporation if thc rnajority of sharcs cntitlcd to votc lorthc
cicction ot'dircctors of such corporation is hcld by tltis
Ctrrprlrrtiort trtrlbc voted, directll' or indirectll. ilt an)
nleeting rnd shall not bc countcd indetcrntinin{: thc total number
of olltstindin:i sh:rrcs at all} given titnc.
Voting b) a slockholder thx! is not an individual sh:ill be
allorrcdonll'upon prescntlltion to thc CLrrporation prior to or
upon rcgistntion al etchstr,ikiroldcis' meeting siltislacton
cvidcncc enlitling thc individual prescnting
the evidence to votc for suclt slockholdcr'Sharcs shose voting
rights are vcsted in tlle Sccrctarl or an! other
oltlcer of thc Corporali0n bl agrccntcnt, court order or
ollterrvisc shlll bcvoted hv thc Sccrstar! as directed bl the
t3olrd of Directors
1.1. VO'I'ING RY B-\LLO'I"Voting on any question c-r in an-v
election ntal be by voicc !ote unless thcprcsidlng off'rccr shall
order or atl stockholder shall denrand lhlt voting bc b)ballol.
clLtst sttclt rcliiince to bc unuarrrntcd A pcrstrn rlllo so
pcrlirrnis thcriircctor's drrtics shlll not have an]'liability
h1'reason olbcing or hafing hcrrl
a dircctor of tlic Clorporntion 'l'hosc pcrsons iurd groups on
rrltoscinfbrntation, opinions, rcpotls, and statcnlcnls a dirtct()r
is cntilled lo rcl\'upon ilrc:a. Onc or morc olliccrs or
etrtplttl'ccs of tlte Oorporation sholn lltcrlirector rcuonably
bclieVcs to bc reliablc xnd conlpctent jn lllc llatlcrsprcsented;b.
C.*,urcl, public accounlrnls' or otlter pcrstltts Ns to nlilltcrs
\\llicllthe direclor rcasoltably bclicves ttr bc rvithin sttcll
pcrsons' prtrlc:sionrl or
cxpcrt comPatcncc; orc. ,\ contniittce ot thc Board ttpott
rvhiclt lhc tlircctor tloci ntrl scnc'duly dcsignttcd in accordrnce
rvith thc provisiott of thc Articlcs ol'tn.orporotion or th€
b).1[ivs. as to mattcrs ]ithin thc comnrittce's
dcsignrtr'Liautho;it), tvhich comnrittcc tllc dircctor rcasonabll'
belicvcs lo nlcrilconlldcnce.
3. N(;\lllEll' l'lir-{lltli '\Nl) QLl'\l.lFlClA'l IONS''lhe
numbcr olclirectrtrs ofthc Corporation shall bc ?.'l'hc
Corprrralion sltlrllalro havc one irssociate director rvho will
riclibcratc $ith and irssist tllcdircctors. 'fltc associirtc
tlircctor shlll have no v0tc on thc Board ol L)ircctors.
ln all otlrcr rcspccls, thc it-sstlcilttc dircctor shlli bc
director tlndcr thcsc b\larrs
e)iccpt as othcru'isc spccilically'pnrr,irlctl' Ilach ilircctor
slrall lx;ld oll.icc ltlr tthrce 1,ear lcnrl or until lhc
director's silccessol shall havc btcn electctl antl
gualitied.i. Nu Bo|ril nrcnrtrer sJrall bc cligitrlc tO bCCOntC
Or rcnrrin a dircclorrvho is not a slockholtlcr ot'tlrc
corporation. I'r0vidctl, h0$cvcr tltat a djrectrlr
nral-- qutliti by reason of having treen desigrrattd by a
pcrstln thrt is llot iloindividual to rcprcscnt such stocklroldcr.2
When skrck ourtcrsltip is hcltl jointll' only ottc ril thc
jointtnsnlbcrs mav bc elcctcd a director'3. li a rlircctor shall
ceasc to bc cligiblc to bccrrtttu ttr rctttlill ltdircctol b)
rcason of any of thc provisions ltcrein. suclt dirccior ntal
beremol'cil b,v the \'ote ()l.tlic nrirjoritv ofthc Iloartl
ot.Dircctors arttl thc r'itcr:lc1
thus crcated, filletl as hcreilallcl provitlccl Nothirg
contrincLl in lhis Articlc
lllshall'orslrallbeconstrucrlttl'aflcctinanytniutncr$'hatsocverthevaliditl'ot'any
actioll tlkcn at an) nlceting of tlte lloartl of llirectors
{. l{LGtlL.\l{ }lltlu
lN(;s'Arcgttlrrn]cctingofthgdirectors'sltallbeheld$'ith0llt(}tllernoticetlllnllli\b11ai'
inrmcrliatc:ly alicr, antl al thc sanle placc as, tltc anntral
nlcciill!l t)1'
siockiroklers .rhc dircctors nr11, provitlc, [rl.rcsolution, thc
tiilrc and phcc firr
thcholdilgcrIaLlditiilnalrcgttlitrnteetingswitl}()utolhelnolicctltitnsttcllrcsol
Lttiott.
5. SPECIAI,
}IEI''IINCS.SpccialntectingsolthcdirectOrsrnaybecrllcdbl.rrr;rtilrclctlucstol.tllcPiesiJcnt
or an)-, t\vo directors. TItc pcrson or pe[sons authorized to
callspccial nrcctingi of rhc directors ntav lix tltc placc tbr
holtling anv spccirlnrecting of llrc dircctors callcil by
theltt.
6. No'rlc'l:.Notice ofany spccial nreuting shall bc gilen xt
lcast 5 drys prcviotrsll'lhcrctob,v *rittcn norice tlclivcrcd
pcrsonalty' or tty clcctronic ntail or ntrilctl to eacltdircctor at
tltc dircctor's b,sincss atldrcss. li'rrrailcd, sttch notice shitll
bc
dcenledtobcdclivcrerlrvhentlcpilsitctlinthctjnitcdStlttesttutiisrratlilresscd,
\\ilil postilgc there0n prcpliil. lfnoticc bc gilcn bl clcctrorlic
ttllil.such noticc shatl bc tlcemcrl to be dclivcrcd rvllcn lhc
clcctronic nlail isdclivcred to the clcctrotlic nct\!ork.'l'hc
ilttcndancc ol n drrcctor irt r lrrcclillsshan conslitulc a $aivcr
oI rrotice of such rDccting, cxccpt \rllcre :t tlircctor
attcnds a mceting lor thc exprcss purposc o[ objccting to thc
tlilnsactit)n ol'
any busirtess trccaLtse tltc meeting is not la\rlull) callcd or
constned'
7. ()uoltull.r\t any mcet-itlg ol'the directors tlte rnqority
shall conslitutc a quorunt lbr tlrc
trlnsaction of btrsincss, btrt if less thm saitl nuttther ts
Prcscnt IIt lt tttcttitigThe act ofthc nlfljoritv ofthc dircctors
prcscnt at a ncctillg at rvltich a qttrlrttnt
is present shall bL thc act of'thc dircctors' a nlqority of the
dircctors prcscnt
mii1.a,ljouilr thc mccting lionr tine t{t tinlc wilh{)ur furthcr
noticc.'l'hcass.rciatc dircctor shtll not bc cotlllted in
dclermirting a qurirunt
8. }I.\NNIIII, OF,\C'I'ING.
l'age 2 of5
l.
.\RI'IC]LI] IIII]O,.\RD OIT DIIII'C]'TORS
G []- ll Ia,\ l, PO\]'B RS.'lhc bLrsiness and aflairs ofthc
Corporation slrall be ntnn:rgcd by its llolrd olllirccbrs. l'hc
directors shrll in ali cilses lct as ir LJoard, and thel nral'
adoptsuch rulcs and regulatiotls fbr thc condttct of lheir
nrcctings attd thcnranrgc$enl of the Corporation, as the!' nral-
tlecm proper, not inconsistcntgirh these bvlals and the larrs
oftitis State.
PIlltFORll.\NCE OIi DU'IIITS'i\
-
l llc act of til!: rlili()rit)' o 1'1hc dircctors present at a
nlecting ilt \\ hich a quoru:rlis I)rcsent shilll bc thc act olthu
dircctors.
9. INI;Or{}r.\I-,\C'I'tON IrY I)It{}]C'f l)lrS.r\rrr actiorr
rcquircd or pcrnritlcd to be txkcn b)' the lloerd ol [)ireclors or
bi ac()illnliltec thereof'rt a rncctiflg nra1,be takcn $ilhorit a
rnccting ifa ccnscnt ir]rrritirrg setling lor1h tllc action so
tlken, shrll bc signed bv illl ofthc dirc.torsor all ol'thc
corrmitlcc nrernbrrs cntillcd to votc with rcspcct 10 thc
sr:hjcctrnilltcr lhrrco[.
10. p..rR.l'tctP,\t I{)N By ul_lac'ilro\tc }tti,rrs.Anl
rnenrbcrs ol-thc []oard of L)ircctors or irny conrntittec
designeted bv such[]oirrd nray prrticipittc iil n nlcetirg o1'lhe
Board ol l)ircctors or comnlittec brnrrars of lclcllrone
conttrcrrcc or sirnilar cunrnunications crluiprncnt b1rrlrich all
persons parlicipating in thc nlectin!: can hcar cach othcr at thc
silnetinrc. Suclr participartion shrll constitutc prescncc in
pcrson at the lnc-cting
ll.
Nlr\\'l,l'crUiA't'I,luDItuc'toRsIItrs.\)iD\',tc.\N(.ilts.Ncrrl;
crcatr:d dircctorships resulting lionr an incrcasc irr lhc nunrbcr
oftiircctors r[d vacrncics occurring in llrc I]olrd firr an-1
rca5on cxccpt thercnloval ol'dircctors by the stocklroldcrs nay be
llllcd b) a votc of'a nu{ority'()l-llrc dircctors thcn in oflice,
altlrorrgh Icss than r rlrro[rrrr erists. \'irc;rnciesoceurringl
b1'rcastrt ol'lhe rerrrovirl oftiircctors b1 tlrc stock.holilcrs
shall bcllllcd h"y'r'otc ol'thc stOckholdcrs. A dircctor elcctcd to
fill a Yacancv c:ruscdbv rcsignltion. dcrth or rcrnovrl shail lrc
elcctrd to lrold of{jcc lor tlrcuncrpircd lcrrn of thc dircckrr's
prcdcccssor.
r:. lrEilovAlot,'tlilrF:crl)tts.r\n1' or all ol'lhc directors
rnl]: bc rerlovcd lbr clLrsc b! 1otc o!'thcsl0ckh0l(lcrs.
lJ. It tas 1(;N.\'t't ()l\i..\ rlircctor nr:rl rcsign at an)'
tinlc bl grving $ritlcn notice t0 thc I.Joard. lhcl'residcnt ur
tlrc Secrctary of thc (iorporation. [Inlcss ol.llcr\r'isc spccificd
inthe rroticc, lhe rcsi*rtatirxr shrll trkc ellcct upon rcccipt
therfol b! thc Boardor such ofllccr, and tlrt acccptancc of'thc
rcsiurxrtion shall not tlc nccessxrv 10rrrrkc it cllcctivc.
l{. c0}il,ltNti.\1'toN.No corrrpcnsrliorr sh:tll bc puitl t()
dircctors, as such, lirr lheir ser\ ices. l)ut b)rcsolrrtiorr of
thc lloilrd n llrcd srin: iurd expcnscs lor uctLral attcndiutce at
cacltrcgular or spcciill nlccting of lhc lloard nray bc
arrthorizetl. Such anrounl nrirr'l.c dcsignated as a "pcr rlienr"
in lieu ot' itenrization ol cxpcnscs. Thcstockltoldcrs, or il'tlot
stt Irr,' tltc stockholtlers, thc lloartl shall set thc
'pcrrlicnr." Notlring hcrcin containctl shlll bc ccrnstrued to
preciude an),dlrrct(rrliorn sen ing tilc C'orporation in any other
capacit) ilnd receivingc0nl pc n s at i 0n [llcrcli]r.
15. ll{llstr}ll'l'loNOIrl\ssl,lNT"A (lircctur of thc Corporrtion
rvho is prcsiitlt at a ntceting of the dirc.tors, ilt*lrich action
()n iuv corporatc rnxttct is ttkcn slllll bc prcsunred to
harca.\sciltcd to llrc retiorr takcn unlcss the dircctor's disscnt
slrall be rntercd in thenlinutcs of lhc nlcrling nr unless tllc
direck)r shall file tltc dircctor's \\'riilendisscnl to sucll
actiorl rvith the pcrson xcting, as thc Secretitry of the
nlcclinsbclirrc thc rdjorrmnlent tlrercof or shall forrvard such
disscnt h1 rcgistercdnraii (o thc Sccrctrrl ol'thc (;orporiltjon
irnntediatclv aller thc adjournntent oflhc necting. Such rtght to
disscrrt slrrll not applv to a ilircckrr rvho volcd inluvor
o1'suclt action
16. u\tiCU'l t\1!; ANt) 01 illiR C{)}l}ll l-t tit:s.-l'hc
lloard, hy rcsohllion. nrtv dcsienatc from arnong its ntenrtrcrs
lne\ccutirc contr:rillee and othcr conltnittccs, each consisting of
onc or rlorcdircclors. llach strch cilntruittec sllrll serve tt lhe
plcasure ofthc Borrd.
.\l{ l tCl.E t\:ortrtc-Iitts
Nt!\lBIrll.
El.I.:Ct'IOli AliD TIR]l Otr ol;FICFl.
'lhe ofliccrs ol- the (lorporirtion sltrll bc a Prcsident, a
Vice-Prcsidcnt, aSccrctur) and r 'l'rcrsurcr, eaclr ol'rvhonr shall
bc elccted bt thc dircctors.Sucll ollrcr olliccrs rnd ilssistant
otliccrs as nray bc deerrrerl necessary nrrv bcclcctd or rppointcil
bv the dircctors. All olllsers of thc Corporrtion, c\ccptthc
Srcrctilry', shill bc stockhoklcrs olthc Corporation.
l he ofl-rcers of thc Corporation to be elccted b; lhc dircctors
shxil be clcctcdrnBurliv at the tlrst rnceting ofthc dircctors held
a{icr cach annual lnceting Lrfthc slockholders. Each olllccr slrall
hold el'flce until thc olllcr:r's successorshlll have Lrccn dul-v
elcctcd and slrall harr qualitrcd 0t until tllc offlccr'sdcrth or
untii tlre ofllcer shall re,\ign or:i:all hav!- becn rentorcd in
thtmanner hereinafier provided.
3. REIIOVAL.Anv ofljccr or rgcnt eleclcd or appointtd b\ thc
direclors ntat be rentovcd brthc dircctors nhcnclcr in
thcirjudgment the bcst intcrests ofti1€ Corporxtionsould br scncd
thcrcb-v. but such removll sltall bc rvitltotrt prejudice to
thccontract riqhts, i f an;-, ol thc person so rcnrovcd.
{. vAC.\\CIES.i uacancl in any olfice bccliuse of (leatll.
rcsignltlol], renloval.disqualification or otheniisc. nra] bc
{'illed b.v the directors lor thc uncxpirerip0rlion olthe tcrm.
5. PRI.SID[\T.'I'hc Prcsident shrll be thc principal crecutivc
olllcer oftllc Corporation lutri.subjcct to thc control ol'tle
directors, shrll in generll supcrvisc and cotltrol irllol the
busincss and afliirs of thc Corporation. 'l'he Presidcnt shilll.
$henprr:scnt, prrside rt all n)celings ofthe slockholdcrs and
oltilc dircctors. TheI'rcsicicnt rn;r1' sign, rrrth rhc Secretar)'
or an) other propcr ofllcer o1' thcCorporation thcrcunto auihorized
bl thc directors, ccnificates for shlrcs of lltcC(rrporation,
an)'dccds, nlortgsgcs. bonds, contracts, or other
illslrunlrntsuhich the dircctors have autborizcd tr') be exccttlcd,
cxccpt in clscs $Jtcrc thesisning and crL'cu{ion thereofshall bc
crprcssll'delegatcd bl'thc directors orb| tlresc brlass tl) somc
olhcr ofliccr or agent olthc Corporation- or sllall bcrcquired bv
larv to be otjlcrwisc signed or executed; urd in gcncral
shallperlbnl lll dutics incidcnt to tlre omcc of I'resi(lent and
suclt other dutics ilsrnav bc prcscribcci bl thc dircctors lrrrni
tinrc to timc.
6.
\'ICI...PRIiSII)II.\T.l!rtilcabs.nceofthcPrcsidcnlorinevcntof'lhcl)resident'sdcath,inabilitl
orrclirsrl to act, thc \ilcc-l)residrnt shilll perfonn the duties
ofthe PresiJcnt. atldrrhcn so acting, shall have all the po\!ers Df
and be subject to all thercstrictions upon the Presidcnt. 'fhc
Vicc-lrcsidcnt shall perlorn stlcll ()thcldLrtie: us liom timc to
timc nluv be assigned lo thc Vice-Prcstdcnt bl'thcl)rcsident or hv
the dircctors.
7. Sl!CtiE'f,\tt\"Thc Secretarv shall keep thc iiinutes ofthe
sbckholders'and oi the directors'nlcctinlrs in one or nrore books
provided for that purposc, see that all noticesare dulv gircn in
accordencc $ith the provisions o{'lhcsc bllarrs or asrcriuircd. bc
custodian of lhe corporate rccords and of thc scal of'
iheCorpontion and kcep a registcr oftltc post ofllce aildress
ofcach stockltoitier*hich shall bc lumislrcd to thc Sccrctary by
such stockholdcr, hirre gcncralcharge of thc stock transfcr brroks
of thr: lorporalion and in gcncrll pcrlbrntall duties incidcnt to
thc oftice olSecrctary and suclr othcr duties as lion] titltcto
ti!ile mav hc assigncd to tl)c Secrctxry by'the l']resident or
b)'the dircciors.
It. 'ltl u,\sI I I{E li.lf rcquircd b1' thc dircctors. thc
-l-reasurcr shall givc a bond lor thc flithlirldischrge of lhe
Trcasirrer's duties in such sr:m and rvitlr such surell' orsurctics
as thc dirrctors shlll duterrnine. The Trcasurcr shall have charge
andcusl.ody ol'and bc rcsponsiblc lor all lirnds ard sccuritics of
lhc Corporatrrn.rcceivc rnd gilc receipls lbr rloile1,s due and
palablc to the Corporrtion frontanv source \\hrtsocvcr. and dcpnsit
all such nrtue,vs in the name ol thcCorporltiru in such banks,
t.ust compiil)ics or other dcpositorics as shail bcsclcctcd in
accordancc \\'ith these bllarvs ald in gcneral perfrrrm all
ol'thctlutics incidcnt {o thc oflice of Trcasurcr and such olher
dutics as frorn timc totimc ma1'bc assigncd tr) thc'l'rcrsurcr by
the I'rcsident or bl thc dircctors.
9. SAI.AIUES.The salaries of the ofllccrs shall bc fixed from
tirnc to time b! the directorsirnd no ol'ficer shall bc prevcnted
liom rccciving such salan b;- reason of thrl'a.t that the ot.ficer
is also a direclor olthc Corporation.
AII'TICI,E vCO}'TR,\C]'S. LO.\NS, CIIICKS .{IiD DT-POSI'I'S
t.
a
Page J of 5
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Clertificrtcs representing sharcs of the Corporation shall bc in
such lbrm asshall br rlctcrnrin.d bi the dircctors. Srrch
ccrlificates shall be signed by thcPresident arrtl bv the
Secretarl'or by such othcr officers euthorizctl by larv andb1 the
dircctors. All ccrtificates for shrres shrll bc consecutil'ch
nurrrbercd orothenvise idcntified. 'Ilre nrnre and address of tlrc
stockhcrldcrs. the nunrberof shares and drtc of isiuc, shell bc
cntercd on the siock transt'cr bLroks of thcCorporation. r\ll
ccrtitlcltes surrcntlercri to the CorporatiLrn tbr transtcr shailbe
canceilcd rnd no ne*'cr.tific:]te shlll be issucd until tlre
fornrer ccrtilicrtcf'or a like numbcr of shrrcs hlvc bccn
surrcndcrcd anil cancclled, c\ccpt thatin cirse ofa lost, dcstro)cd
or nlutilirtcd ccrtillcatc a ne\l onc nral be issucdthcrelbr upon
sucir lcrrns and iildenrnitl'to thc Corporatiot] as thc
dircctorsmal prescribe. I-ost certificrtes nray also bc issucd
pursuant to Section 7-.12-I ll. C.R.S., as irmendcd.
l.
2.(a)
1, CO:,,I'I'IL\C'I'S.l'he clircctors rnay airthorize anl ofticer
or ofllcers, agcnt or agcnts, to entcrinto an] contract or crccutc
and dcliver an) instrulnent in the nanre ofrnd onbeiralf of thc
Corporatlon, an
-
6. it sllrll be tlic p(riic)'ofthc C:orporulion, its direcrors
and olllctrsthat all dccrccd \!rtcr aliocatrd to or delivcred bv
thc (iorpor;tltttrr to irs-stockhoklcrs ()r othcrs shall be
bcnelicialll uscd and adninistcrtd onlv tithinthe houndarics ofllrc
Corporation's arcr o1'scrvicc.
Iaclr stocklroldcr or pcrson rcceiring *ltcr throur:l]
tltr('orponrtion's svstcnr dcsiring to cltrngc the plrcc to u.hich
an\' \yater thcsiocklroklcr or pcrs{rn ntly bc cntitlcd shall bc
dclivcred or to rntkc m1churge in watcr rights ofany hir:d ()r
rliltIre shirll nrake prior nrittcn rcqrrest l0tlrc Ilolrrd. llin
lhc opinion ofthe llolrd, srrch changc crur bc nradc uithrrutrnjury
to thc ditches, thc rcscr|oirs, the Corporltion or othcr
stockltolders,srrch nrrtcr nrrv bc dclivcred to sucll plircc or
places ils requcsled upon suchterrns and conditions irrrposctl bv
thc }lornl Aftcr such Board appror ll, suchpcrson shlll notil,v ilr
*ritirrg all stockholdcrs and othcr persons aflcc{cd h1tlrc
cli.ut,lc llrir)r tr ju(il clt,trrrc
ti. l:rcrpt as hcrcinnlier providerl. no wttcr shall be
furrrished to othcrthirn stockholders. and to slockholdcrs orrly
irr proportion ils thc arnount ofstock rhc stockholdcrs ()wlt ()r
conlr()l is to llle $holc crpital stock of thct'orporiltion. l1 is
rnadc tltc duty ofthc n)tnarcr ofrhis Corporalion caclr andcrrr.v
).eirr lreforc lnv *:rlcr is tira*l lionr thc rcsenojrs olthc
Corporttion,to asccrltin ts neilr as nray bc the lt.t]ount ot-
rrii{cr contai:ted in snitlrcscrvoirs, and to rlakc al)d esiintatc
ol'thc rrtrnrbcr ofdavs s:rid \\'it!cr crn bccontinuously rtrn in
tlrc ditclrcs (Jflhe ('{\rlorrtion ,,pun i b"r,, of I/10
crrbiclix)t \\'lter pcr sccond time pcr shlrc. antl stocklroldcrs
desiring to usc \\.atcrfirr irrigation, nrav havc tllc sanlc
turnc(l out to lhcm upon this bilsis ilt rregulrr hour on :ny' drl
bctl.ccn Nlay l iirrd Octobcr 3 I erch 1.car (both
datcsirrclusivc). lrr orcler that wiltcr nlay not bc run to
disadvantrcc {)r witstc, it shrllbc nccc:sary thrl at lctst 20
Cll;S (irrclLrrling thc clll of thc 'losn o1'Jrihnstorvn) bc
ordcrcd 1o initiatc or to c()nlinue drilv rvrtcr rlcliven
senicc.,-\ll rivcr \ltcr belorrging to thc C'orporation run in the
ditcllcs, tnd al1 surphrs\\;lter turncd into thc rtservoirs alicr
lhcl,hlve been nreuurcd shall be tiiridcclpro ralr anlons thc
sk)rkholders. All *ntcr not (lelivcrcd pursuitnl lo such
callsyrrior tLr the lirst rhl olNolcrnbcr shall tlc lbrlcitcd to
thc Colporation for lltcbcncfit ol'rll its sk)ckholdcrs to bc
tpporlioned anrong lhenr for dclivcry,drrrirrg tlrc rlcrt
succccding Vcrr. (Donrcstic $.atcr delirercd to the Trlr\n
ol'.hlrnstou n alicr r'*ovcnrbcr I shrll be cxccptcd and shall lrc
gove rne d bliltrrcnlcnt citlered inlo bctrvecrr Johnstotln and
llrc Cornorirlion.)
.^t{'flct,r.t Iv,\SSl:lssi\I ItNl' ON S't OCti .\i\iI)
Lllt,r.-
I lf tlrc Corporrliorr decrrrs il ltcccsslrr\ lo ririse lunds to
krrp its(lrtclreii. clr)ilis. rrr rcscr!0irs in i:trtrl rcplrir or
to pxV ant.ittilcbtednesstlrcrct.firre c.ntrrctc(l or rllc
i!lrcrcst tlrcrcon, the corporltion slrall Iravcpo\\.cr to rilake
an rsscssnrcnt on tllc capital stock thcreofl to hc lcvicd pro
ratror1 lhe shrrcs of stock plv;rblc in rrxrncy, labor. or bolh,
lor the purposc ofkcrping thc propcrly ot thc Corporation itr rood
rcpair anrl frrr thc pillnlcnt ol'anv intlcbtcrlness or inlcrest
tllcrer)l.
2 Iltrt no such cscssmcnt shill bc rnadc unless tllc questiu]
ol'rrrakirrg tlrc ilsscssrncnl is llrst subnlittcd tr) the
stocklroldcrs ol' rlre(orporrtion at an annual nlcetin{r or at a
spccill nreeting callcd frrr thatpurpose, ifa quorum is prcscnl.
rntJ llrc ln;tjo1iq1 ofstocL rcirescnted iil snchnrcetins. eithcr
by tlrr o$,ncr ilr person or proxy, enti(led to Yotc thcrcOn
shall
'.tc in lu'or ol'nrrhing such a.sscssmcnti and ir'sairi
stockholdcrs fhil to hold
anv srrch nrcetin.t or l-ail to makc or arrthorizc any
assessn.icnt lvitlrin nincl\,tltrl's alicr thc ckrsc ofthc
f'orltorttion's fiscal Ycxr, thc dirccl{\rs slrrll it.rrcfr)\r'cr
to nrrkc :url sucll asscssnlcllt at anv regrrllr or spccial
nrceting crllcdtherelirt. hrr thll yeilr.
I l-lre Cbrporation hercby providcs fbr thc salc rnrl
lirrlciture ofslrrrcs ol'stock for such r\\r\snlcnt as provitlcd
iil subseclit}l1 (4) of thisscction ;rntl hns thc benefit of srid
subsection (,1) lor the rccovcrl. ol'suchlssesslllcnts [r1,
Ibrfcitrrre or salc ol the stock in dcfuult, iud lhc
Corporationslrall have I pcrpe{utl licn uprtrr such slrlres ol
stock antl tl}c \ratcr richlsrrprescntcd bt'the slnrc lbr any and
lll such asscssnre:rls or other anrountsdrrc until tlle salrlc:rrc
tirlly paid. lhc Crtrporatirtn hcrcbl,providcs rhat no*atcr shall
bc dclivcrcd unlil rsscsstllcnls or any otltcr aillouDts due arc
paidUrrprid asscssrncnt-s shirll ltcar iIttcrcst irt thc ritte
0l'lSl.i, pcr arinultrconrpoundcd annulll; fionr thc diltc due.
.1. Thc slrares ol stock sh:rll bc dcerrcd frrsonal proprn!
ilndtransfcralrle as such in the lnlnner pri)\'idcd bv the
b1,larvs. A fbrleiturc or saleofslock on failurc to pr\ thc
assesstncnts or an) olhcr an)oLlllts durj lhiit frcnttinlc io tirne
nrl\, bcco$tc duc tre to bc contluctcri in tlrc ntarrner pro\'iCed
inlhis brlaq'. No lbrfciture of stock shall bc decltrcd as against
anv cstalc oragainst anv sk)ckholder bcforc dcnrand has been nltde
lbr lhe anloutlt ducthcrcon cither in pcrson or b\.\\rittcn or
printcd ndicc dul! nrailed to the lastkno$n addiess ofsuch
stockhslder at lcast thiq da).s prjor to thc tinle thclbr{titure is
!o takc rlfuct. If thc asscssntent is not paid $ithin such 30
da}'pcriod. thrn dtij Sccretary is dirccted to canccl oI] thc books
and rccords ofthrCorporatiorr. thc stock for rrhich the an(iunt duc
is unpaid. and is directcd tcrrcissuc thc stock in thc nanrc ol the
Corporation. At thc ncxt mnual rneetingofthc stockholdcrs ofthe
Corporation, such stock shall be olfered lbr sale totlre
stockholdcrs md sh:rll lrc sold to tlre highcst biddcr. If the
procecds liornth. srle are insulficicnt to satisI thc anroutt due
thc Corporation, includinglil rcasonablc and propcr costs of
ntaking ftnd giving such notice. thcCorporation mav nraintain an
action to rccovcr such deficienc1,. Thc procccdsolanl salc. olcr
f,nd abovc thc atnotnt due on said shares, shall bc paid to
thcdtlinclucnt stockh0lder.
Enttcrtd bl tha .stockho[dtrs of the Corporation on Drenfter ]
2, 1988..1tn.:ndi,d by tlrc .ttuckholiers of the (lorporatron on
l)tct,nl;cr 10. 2001.
Prge 5 of5