Document:

orlandoamend1.htm

 

EXHIBIT 10.4

ORLANDO SECOND AMENDMENT TO THE MASTER PURCHASE AGREEMENT

 

 

This is a Second Amendment (the “Second Amendment”) to the Purchase Agreement dated September 22, 2010 and the Exhibits attached thereto entered into by and between THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC, a Colorado limited liability company (hereinafter referred to as “Seller”) and TRWC, INC., a Colorado corporation d/b/a TWO RIVERS WATER COMPANY (hereinafter referred to as “Buyer”).   The Purchase Agreement is modified by that certain First Amendment to Purchase Agreement dated to be effective October 14, 2010 (the “First Amendment”).  The Purchase Agreement and the Exhibits attached thereto and the First Amendment are hereinafter collectively referred to as the “Agreement.” Seller and Buyer are individually referred to hereinafter as a “Party” and collectively as the “Parties.”

To the extent of any inconsistencies between the terms of the Agreement and this Second Amendment, the terms of this Second Amendment will control.  Capitalized terms used herein, if not separately defined in this Second Amendment, will have the same meanings ascribed to them in the Agreement.

RECITAL

By execution of this Second Amendment the Parties intend to extend certain deadlines defined in the Agreement.  The continuance of said deadlines is the sole purpose of the Parties in executing this Second Amendment. The Parties’ remaining obligations contained in the Agreement shall remain unchanged.

WHEREAS, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

	
1.  

	
Subsection 3.1 of Section III. titled “Closing” is amended to state the following:

Time and Place.  The closing of the purchase of the Property (“Closing”) shall be at the offices of Title Company, Land Title Guarantee Company, Inc., 102 S. Tejon St., Suite 100, Colorado Springs, CO, 80903 on December 30, 2010 or on an earlier date if mutually agreed to by the Parties.

	
2.  

	
The first 3 sentences of Subsection 4.1 of Section IV. titled “Buyer’s Due Diligence” are amended to state the following:

Property Approval Period.  As noted above, Buyer and Seller have been negotiating this transaction for a few months, and during that time Buyer has completed certain due-diligence regarding the Water Rights.  Buyer shall have an additional period of time through and including December 10, 2010 (the “Approval Date”) to determine, in its sole discretion, the feasibility of Buyer’s planned investment in the Property.  From and after the date of this Second Amendment, Buyer agrees to keep Seller advised of the status of its due diligence and financing efforts and will periodically update Seller on status of those efforts.

The remainder of Subsection 4.1 of Section IV shall remain unchanged and in full force and effect.

	
3.  

	
Buyer has been endeavoring to secure funding from investors or lenders which Buyer needs in order to Close on the purchase of the Property.  Buyer and Seller agree that Buyer’s obligation to Close on the purchase of the Property will be conditioned on Buyer obtaining such equity investments or loans, on terms acceptable to Buyer in Buyer’s sole discretion, on or before December 21, 2010 (the “Financing Contingency”).  If Buyer is not able to satisfy Buyer’s Financing Contingency, then Buyer shall be entitled to give Seller written notice of the failure of the Financing Contingency on or before December 21, 2010, in which  case this Agreement shall be deemed terminated, Buyer shall receive a refund of the Deposit, and neither Party shall have any further rights or obligations under the Agreement, except that Buyer’s indemnification obligations under Paragraph 4.2 of the Agreement shall continue in full force and effect notwithstanding the termination of this Agreement.  If Buyer fails to provide Seller with a written notice of the failure of the Financing Contingency on or before December 21, 2010, then the Financing Contingency shall be deemed satisfied or waived, the Deposit shall be deemed non-refundable to Buyer and shall be released to Seller, but the Deposit shall be credited against the Purchase Price if Buyer Closes on the purchase of the Property.

 

 

	
4.  

	
Except as modified by this Second Amendment, all terms of the Agreement remain in full force and effect.

	
5.  

	
This Second Amendment is executed to be effective as of the 17th day of November, 2010.

SELLER:

THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC,

a Colorado limited liability company

____________________________________

By: Randle W. Case II

Its:  Manager

BUYER:

TWRC, INC., a Colorado Corporation

d/b/a TWO RIVERS WATER COMPANY

___________________________________

By: John R. McKowen

Its: CEOorlandoamen2.htm

 

EXHIBIT 10.4

ORLANDO THIRD AMENDMENT TO THE MASTER AGREEMENT

 

This Third Amendment (“Third Amendment”) dated this 20th day of December, 2010 pertains to the Purchase Agreement dated September 22nd, 2010, the Exhibits attached thereto, the First Amendment to Purchase Agreement dated October 14th, 2010 and the Second Amendment to Purchase Agreement dated November 19, 2010 entered into by and between THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC, a Colorado limited liability company (hereinafter referred to as “Seller”) and TRWC, INC., a Colorado corporation d/b/a TWO RIVERS WATER COMPANY (hereinafter referred to as “Buyer”).   The Purchase Agreement, the Exhibits attached thereto, the First Amendment to Purchase Agreement and the Second Amendment to Purchase Agreement are hereinafter collectively referred to as the “Agreement”.  Seller and Buyer are individually referred to hereinafter as a “Party” and collectively as the “Parties.”

To the extent of any inconsistencies between the terms of the Agreement and this Third Amendment, the terms of this Third Amendment will control.  Capitalized terms used herein, if not separately defined in this Third Amendment, will have the same meanings ascribed to them in the Agreement.

RECITAL

By execution of this Third Amendment the Parties intend to extend certain deadlines defined in the Agreement.  The continuance of said deadlines is the sole purpose of the Parties in executing this Third Amendment. The Parties’ remaining obligations contained in the Agreement shall remain unchanged.

WHEREAS, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

	
1.  

	
The second-to-last sentence of Subsection 2.2 of Section II. titled “Title” shall be amended to state as follows:

The date of Closing shall be extended for a reasonable period of time to allow for the above time periods but in no case beyond February 15th, 2011.

	
2.  

	
Subsection 3.1 of Section III. titled “Closing” shall be amended to state the following:

Time and Place.  The closing of the purchase of the Property (“Closing”) shall be at the offices of Title Company Land Title Guarantee Company, Inc., 102 S. Tejon St., Suite 100, Colorado Springs, CO, 80903 on February 15th, 2011 or on an earlier date if mutually agreed to by the Parties hereto.

	
3.  

	
The first sentence of Subsection 4.1 of Section IV. titled “Buyer’s Due Diligence” shall be amended to state the following:

Property Approval Period.  As noted above, Buyer and Seller have been negotiating this transaction for a few months, and during that time Buyer has completed certain due-diligence regarding the Water Rights.  Buyer shall have an additional period of time through and including February 15th, 2011 (the “Approval Date”) to determine, in its sole discretion, the feasibility of Buyer’s planned investment in the Property.

	
4.  

	
Two (2) additional sentences shall be added to the end of Subsection 4.1 of Section IV as follows: If Buyer, in its sole discretion, determines the transaction contemplated herein is not suitable for its planned investment on or before February 10th, 2011, the Earnest Money shall be refunded to Buyer.  From and after the date of this Third Amendment, Buyer agrees to keep Seller advised of the status of its due diligence and financing efforts and will periodically update Seller on the status of those efforts as requested by Seller.

The remainder of Subsection 4.1 of Section IV shall remain unchanged and in full force and effect.

	
5.  

	
Except as modified by this Second Amendment, all terms of the Agreement shall remain in full force and effect.

This Amendment is executed as of the date first written above.

SELLER:

THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC,

a Colorado limited liability company

____________________________________

By: ________________________________

Its:  Manager

BUYER:

TWRC, INC., a Colorado Corporation

d/b/a TWO RIVERS WATER COMPANY

___________________________________

By: John R. McKowen

Its: CEO

 or

___________________________________

By: Wayne Harding

Its: CFOorlandoamen3.htm

 

 

EXHIBIT 10.5

ORLANDO FOURTH AMENDMENT TO THE MASTER AGREEMENT

This is a Fourth Amendment (the “Fourth Amendment”) to the Purchase Agreement dated September 22, 2010 and the Exhibits attached thereto entered into by and between THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC, a Colorado limited liability company (hereinafter referred to as “Seller”) and TRWC, INC., a Colorado corporation d/b/a TWO RIVERS WATER COMPANY (hereinafter referred to as “Buyer”).   The Purchase Agreement is modified by that certain First Amendment to Purchase Agreement dated to be effective October 14, 2010 (the “First Amendment”), by that certain Second Amendment to Purchase Agreement dated November 19, 2010 (the “Second Amendment”), and by that Third Amendment to Purchase Agreement dated December 20, 2010 (the “Third Amendment”).  The Purchase Agreement and the Exhibits attached thereto, the First Amendment, the Second Amendment and the Third Amendment are hereinafter collectively referred to as the “Agreement.” Seller and Buyer are individually referred to hereinafter as a “Party” and collectively as the “Parties.”

To the extent of any inconsistencies between the terms of the Agreement and this Fourth Amendment, the terms of this Fourth Amendment will control.  Capitalized terms used herein, if not separately defined in this Fourth Amendment, will have the same meanings ascribed to them in the Agreement.

WHEREAS, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby amend the Agreement as follows:

1.           Regarding Subsection 1.2 of the Agreement, the Parties agree that the Purchase Price for the Property shall be $3,100,000.00, and shall be payable as follows:  One Hundred Thousand Dollars ($100,000.00) payable in cash at Closing, and Three Million Dollars ($3,000,000.00) payable in the form of a Promissory Note from TRW Orlando Water Assets, LLC to Seller in the form attached hereto as Exhibit 1 and incorporated herein by this reference (the “Promissory Note”).  The Promissory Note shall be secured by a Deed of Trust in the form of Exhibit 2 attached hereto (the “Deed of Trust”) and by a collateral pledge of the membership interests in TRW Orlando Water Assets, LLC, a Colorado limited liability company, which shall take title to the Property in accordance with Paragraph 5 below.  Buyer shall provide to Seller, at Seller’s expense, a lender’s title insurance policy insuring the lien of the Deed of Trust as a first and prior lien against the Land. Buyer covenants and agrees to continue efforts to raise funds sufficient to pay off the obligations under the Promissory Note and agrees to use all commercially reasonable efforts to prepay the Promissory Note to the fullest extent possible if its financing efforts are successful, and this covenant shall survive the Closing.  There shall not be any credit against the Purchase Price for the $30,000.00 lease payment made by Buyer pursuant to the parties’ May 28, 2010 Water Lease.  The Parties agree that the Purchase Price shall be allocated between the Land and the various Water Rights and the Covenant Not to Compete Agreement (required by Section 5.2 of the Agreement) as follows:

LAND (Orlando Reservoir No. 2):                                                                           $ 100,000.00

WATER RIGHTS:

Orlando Storage Rights:                                                      $2,370,000.00

Butte Valley Ditch                                                      $500,000.00

Robert Rice Ditch                                                      $125,000.00

COVENANT NOT TO COMPETE:                                                                           $5,000.00

 

 

	
2.  

	
Buyer agrees to apply any interest accrued on the Deposit toward payment of closing costs.  Seller shall be responsible for the payment of all closing costs not paid for by the interest accrued on the Deposit.

	
3.  

	
Regarding Section 5.2 of the Agreement, the Parties have agreed upon the terms and conditions of the Service Agreement, and the agreed upon Service Agreement that shall be executed at the Closing is attached hereto as Exhibit 3 and incorporated herein by this reference.

	
4.  

	
Regarding Section 5.2 of the Agreement, the Parties have agreed upon the terms and conditions of the Covenant Not to Compete Agreement, and the agreed upon Non-compete Agreement that shall be executed at the Closing is attached hereto as Exhibit 4 and incorporated herein by this reference.

 

 

	
5.  

	
Regarding Section 5.5 of the Agreement, the Parties have agreed upon the initial terms and conditions and form of the Recreational Use and Access Agreement, a copy of which is attached hereto as Exhibit 5 and incorporated herein by this reference (the “Recreational Easement”). The Parties agree to execute the Recreational Easement at the Closing, which agreement shall remain subject to future amendments as provided for in the Recreational Easement.

	
6.  

	
Seller agrees to the assignment and assumption of the Agreement by TRW Orlando Water Assets, LLC, a Colorado limited liability company, whose sole member is Two Rivers Water, LLC, a Colorado limited liability company.  TRW Orlando Water Assets, LLC shall receive title to the Property at the Closing.  The Promissory Note referenced in Paragraph 1 above shall be executed by TRW Orlando Water Assets, LLC.  Additionally, both Buyer and TRW Orlando Water Assets, LLC shall execute the Service Agreement, the Covenant Not to Compete and the Recreational Easement.

	
7.  

	
The Parties stipulate and agree that “Buyer” as defined in the Purchase Agreement and the amendments thereto should be “Two Rivers Water Company, a Colorado corporation” rather than “TRWC, Inc., a Colorado corporation d/b/a Two Rivers Water Company.”

	
8.  

	
From and after the Closing, the Parties agree to execute and deliver such other and further documents and agreements as may be requested by a Party to more fully implement and document the intent of the Parties as set forth in this Agreement.  This covenant shall survive the Closing.

	
9.  

	
Except as modified by this Fourth Amendment, all terms of the Agreement remain in full force and effect.

	
10.  

	
This Fourth Amendment is executed to be effective as of the 28th day of January, 2011.

SELLER:

THE ORLANDO RESERVOIR NO. 2 COMPANY, LLC,

a Colorado limited liability company

____________________________________

By: Randle W. Case II

Its:  Co-Manager

BUYER:

TWO RIVERS WATER COMPANY

a Colorado corporation

___________________________________

By: Wayne Harding

Its: Chief Financial Officer and Corporate Secretary

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