HomeMy WebLinkAboutContracts & Agreements_127-2005_CCv0001.pdf SHARES LEASE
This Shares Lease ("Laame") imentered into between the City mf Redlands("Lesmmr")and Debbie
Pnmtsnnan ("Lomsne"). Lessor and Lessee agree msfollows:
A. Lessor is the owner of shares of the Capital Stock of Crafton Water Company ("Shares"); and
B.
Lessor desires to lease 5 of its Shares (hereinafter the"Leased Shares")to Lessee on the
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terms and conditions set forth hereinafter.
~ 1� Lessor hereby agrees to lease the Leased Shares to Lessee and Lessee agrees to
� lease-----same from Lessor for the purpose ofproviding water toLessee. Said water shall not
be used by Lessee for human consumption prior to treatment by Lessee, to California
Department ofHealth Services, Office ofDrinking Water Standards.
2. Term. The term of this lease shall begin on June 21, 2005 and end on June 1, 2006, (in no
event more than one year) (^Leosebarm^). Notwithstanding the foregoing, Lessee
understands and agrees that(a)the real property owned by the Lessor("Lessor's Real
Property")could be the subject of a condemnation proceeding or other 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 be the sole and exclusive property of
Lessor 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 the
Lessee shall beentitled toapro rata refund ofthe Rent aodefined herein below, and (e)
there ienoimplied intention that this Lease orany rights orinterest hereunder will be
extended beyond the Lease Term.
3, Rent. Lessee hereby agrees to pay Lessor the sum of$280.00 upon execution of the Lease
for the Leased Shares asset forth herein. Lessee further agrees topay Lessor the amount of
any stock assessment on said shares, which would result in an annual assessment in excess
of$55.00 per share, if any, and any delivery or entitlement charge levied by Crafton Water
Company for delivery ufwater associated with said shares.
4. Assignability. Lessee hereby agrees that it shall not have the right toassign, sublet or
otherwise transfer orencumber the Leased Shares under this Lease.
5. Voting Rights. Lessor retains voting rights associated with ownership of the Leased Shares.
8. Waiver. Lessee hereby agrees to 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 no responsibility for the quality or purity of any water attendant to the
Leased Shares.
This Lease imexecuted unthe 21mtday ofJune 2OD5.
"Lessor:" "Lessee:"
City of Redlands D e Ub|
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