HomeMy WebLinkAboutContracts & Agreements_122-2008_CCv0001.pdf SHARES LEASE
This Shares Lease(^Lease") isentered into between the City ofRedlands ("Lessor") and Mike
K8hca|lef("Lessee"). Lessor and Lessee agree mmfollows:
A, Lessor is the owner of shares of the Capital Stock of Crafton Water Company ("Shares"); and
B Lessor desires to lease 7 of its Shares (hereinafter the "Leased Shares")to Lessee on the
terms and conditions set forth hereinafter.
1. Lease. Lessor hereby agrees to lease the Leased Shares to Lessee and Lessee agrees to
lease same from Lessor for the purpose ofproviding water hoLessee. 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 the date of execution of this lease and end on
March 31. 20OS. (in noevent more than one year) (^Lemoebarnn^). 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
mthe event the Leased Shares esdescribed are the subject matter ofacondemnation
proceeding then in that event the entire amount of any such award shall be the sole and
exclusive property ofLensorondtheLeosaeshaUhavenuintenaat therein, (d) inthe event
there is a taking of the Leased Shares by condemnation, then in that event this Lease shall
terminate and the 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 or interest hereunder
will beextended beyond the Lease Term.
3 Rent. Lessee hereby agrees to pay Lessor the sum of$665.00 upon execution of the Lease
for the Leased Shares msset forth herein. Lessee further agrees topay Lessor the amount nf
any stock assessment on said shares, which would result in an annual assessment in excess
of$85.00 per share, if any, and any delivery or entitlement charge levied by Crafton Water
Company for delivery ofwater associated with said shares.
4, Assignability. Lessee hereby agrees that itshall not have the right tuassign, sublet or
otherwise transfer orencumber the Leased Shares under this Lease.
5, Voting Ricihts. Lessor retains voting rights associated with ownership of the Leased Shares.
& 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
uoueo. Lessor assumes no responsibility for the quality or purity of any water attendant to the
Leased Shares,
This Lease igexecuted onthe ayofJuly, 2OO8
^Lemmor-" "Lessee:"
Mike K4iooUef
BY
N. EnPEIu9Q'aert(nez4
City Manager
Attest:\