MUTUAL WATER COMPANY SUBSCRIPTION AGREEMENT ...

Mutual as approved by its shareholders including those having
rights to acquire shares as guaranteed by the Mutual.
No Party shall receive any consideration for the
granting of any such right for roadway access and utility
purposes.
12. Further Documents and Acts.
The Parties agree to execute and deliver documents as
reasonably requested by the Mutual, in order to give effect
to this Agreement, within twenty (20) days after a written
request is delivered to the party.
13. State Coastal Conservancy.
The Parties acknowledge that the State Coastal
Conservancy ("Conservancy") is an agency of the State of
California, and cannot itself acquire or hold shares in the
Mutual. The Parties further acknowledge that the Conservancy
is governed by a Board of Directors (the "Board") who make
decisions regarding, but not limited to Conservancy policy
and authorization and disbursement of Conservancy
expenditures. However, the Conservancy is entering into this
Agreement to secure the right for its successors in interest
to obtain such shares in the Mutual and to the extent that
the Conservancy makes expenditures for the benefit of the
Mutual, as provided in Paragraph 6(c) or payments to the
Mutual as provided in Paragraphs 6(a) and/or 6(b), the
Conservancy shall receive the guaranteed credit and right for
its successors or assigns to obtain shares in the Mutual.
The Parties further acknowledge that the Conservancy intends
to subdivide into four (4) parcels the property it currently
owns within the Mutual's Service Area known as the
Craven/Nation property, and to sell the property to one or
more private parties.
(a) Construction Expenses Provision. If the
Conservancy desires to become a Water Subscriber, it shall be
required to pay its share of Construction Expenses for the
two (2) existing Craven/Nation parcels as calculated in
Paragraph 6(b) or to make a contribution to the Mutual in an
amount equal to or greater than said calculation in
accordance with Paragraph 6(c), as provided herein.
Within thirty (30) days following the issuance of the
CDP to the Mutual and of the Mutual obtaining the
Construction Bid, the Mutual shall provide written notice to
the Conservancy of the date of issuance of the CDP, the names
of the Initial Subscribers in the Mutual, the total cost of
Formation Expenses, the cost of compliance with CDP
conditions of approval, the cost of any additional
engineering and other fees necessary to obtain a Building
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