HomeMy WebLinkAboutContracts & Agreements_49-2009_CCv0001.pdf SHARES LEASE
This agreement for the lease mfCraftmn Water Company Shares ('Leese") is entered into this 9 t
day nfApril, 2D89 ("EffenctiveDabo"). byand between the City mf Redlands ("Lemsmr^)and Craig
Wesson ("Lessee"). Lessor and Lessee are sometimes individually referred hoherein ms a "Pmrty°
and,together,as the"Parties." Lessor and Lessee agree msfollows:
RECITALS
WHEREAS, Lessor is the owner of shares of the Capital Stock of the Crafton Water Company
("Shares"); and
WHEREAS, Lessor desires to lease thirty(30) of its Shares (hereinafter the"Leased Shares") to
Lessee onthe terms and conditions hereinafter set forth�
.
NOW, THEREFORE, in consideration of the mutual promises contained herein, Lessor and
Lessee agree asfollows:
AGREEMENT
1. Lease. Lessor hereby leases the Leased Shares hoLessee and Lessee leases the same
from Lessor for the purpose ofproviding water toLessee. Such water shall not beused by
Lessee for human consumption without prior treatment by Lessee to California Department of
Public Health, Office of Drinking Water standards, and all other applicable laws.
2. Term. The term of this Lease shall commence on its Effective Date and shall end on March
31. 2010. ("Laasebarm^). Notwithstanding the foregoing, Lessee agrees that(a) the real
property owned by the Lessor("Lessor's Real Property") could be the subject of a
condemnation proceeding nrother taking, (b)the Leased Shares are not currently subject to
a condemnation proceeding or other taking, (c) in the event the Leased Shares are the
subject matter of a condemnation award or in the event, the Leased Shares as described are
the subject matter of a condemnation proceeding then in that event the entire amount of any
such award shall bethe sole and exclusive property ofLessor and the Lessee shall have no
interest therein, (d) in the event there is a taking of the Leased Shares by condemnation, then
in that event this Lease shall terminate and Lessee shall be entitled to a pro rata refund of the
Rent as defined herein below, and (e) there is no implied intention that this Lease or any
rights orinterest hereunder will beextended beyond the Lease Term.
3. Rent. Lessee shall pay Lessor the sum of$2500.00 within three (3) business days from and
after the Effective Date of this Lease. Lessee further agrees bopay Lessor the amount ofany
stock assessment on the Leased Shares, which would result in an annual assessment in
excess of$80.00 per share, if any, and any delivery or entitlement charge levied by Crafton
Water Company for delivery ofwater associated with the Leased Shares.
4. Assignability. Lessee shall not assign, sublet or otherwise transfer or encumber the Leased
Shares.
5. Voting Rights. Lessor retains voting rights associated with ownership of the Leased Shares.
6. Waiver. Lessee shall defend, indemnify and hold harmless Lessor from any loss, cost,
expense and claims arising directly or indirectly out of(a)condemnation of the Lessor's Real
Property or the Leased Shares prior to expiration of this Lease, (b) this Lease, and (c)from
any environmental contamination of any water attendant to the Leased Shares, from
whatever cause. Lessor assumes noresponsibility for the quality orpurity nfany water
attendant tothe Leased Shares.
This Lease iaexecuted onthe 9th day ofApril, 2OOA
^Lenaoc^ "Lessee:"
City Redlands Craig Wesson
N�..4En * ue I inez
* ' mvi Z— C—
Ci , tanager
Attest:,
0' Jerk
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