HomeMy WebLinkAboutContracts & Agreements_116-2006_CCv0001.pdf SHARESLEASE
This Shares Lease("Lease") is entered into between the City ofRedlands ("Lessur")and Peter
Bwove(" Lessor and Lessee agree msfollows:
A. Lessor h;the owner ofshares ofthe Capital Stock ofCrafbonWater Company("Shan*o"); and
B. Lessor desires bmlease 6of its Shares(hereinafter the"Leased Sheres^)toLessee unthe
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&oLessee. 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 6, 2006 and end on June 1, 2007, (in no
event more than one year) (^Leasmtann"). 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 ofany such award shall bethe sole and exclusive property uf
Lessor and the Lessee shall have nointerest therein, (d) inthe event there iaataking ofthe
Leased Shares bycondemnation, then inthat event this Lease shall terminate and the
Lessee shall beentitled toopro rata refund ofthe Rent asdefined herein below, and (e)
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$280.00 upon execution of the Lease
for the Leased Shares oeset forth herein. Lessee further agrees hopay 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. Assignability. Lessee hereby agrees that bshall 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 isexecuted onthe 6th day ofJune 2OUG.
"Lessor:" ^Lese�e-^
City mfRedlandsBu e Peter
BY: BY: