HomeMy WebLinkAboutContracts & Agreements_119-2006_CCv0001.pdf SHARES LEASE
This Shares Lease("Lmssm°) isentered into between the City of Redlands(" and Pete
0Amncmmn("Lessee"). Lessor and Lessee agree as fo|Vuvxs; '
A. Lessor is the owner of shares of the Capital Stock of Crafton Water Company("Shares"); and
B. Lessor desires to lease 10 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 boLessee. 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 ofthis lease shall begin nnJune 6. 2OOGand end onJune 1. 2OO7. (in no
event more than one year) /^Leesetarrn"\. Notwithstanding the foregoing, Lessee
understands and agrees that(a)the real property owned bythe Lessor(^Leaeqr'mReal
Property")could be the subject of a condemnation proceeding or other taking, (b) the Leased
Shares are not currently subject hoacondemnation proceeding orother taking, ( ) 1nthe
event the Leased ShareearatheaubAeotmnaberof000ndernnaUonaxvordorinth� 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 bycondemnation, then inthat event this Lease shall terminate and the
Lessee shall be entitled toapro rata refund ofthe Rent asdefined herein below, and (a)
there is no implied intention that this Lease or any rights or interest hereunder will be
extended beyond the Lease Term.
3. Rent. Lessee hereby agrees to pay Lessor the sum of$560.00 upon execution of the Lease
fordleLaaaedShares asset forth herein. Lessee further agrees bopay 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 ofwater associated with said shares.
4. Lessee hereby agrees that it shall not have the right boassign, sublet or
otherwise transfer orencumber the Leased Shares under this Lease.
5. Lessor retains voting rights associated with ownership of the Leased Shares. '
G. Waiver. Lessee hereby agrees bohold harmless Lessor from any loss, cost, expense and
claims arising directly or indirectly out of(a)condemnation of the Lessors 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, fronlwhobaver
cause. Lessor assumes no responsibility for the quality or purity of any water attendant to the
Leased Shares.
This Lease isexecuted onthe 6th day ofJune 2OOG.
"Lessor:" "Lessee:"
City ofRedlands Pete Marcum