HomeMy WebLinkAboutContracts & Agreements_121-2006_CCv0001.pdf SHARESLEASE
This Shares Lease (^`Leamm/") isentered into between the City mfRedlands ('Lessor') and WiUYa
Bruns ("Lessee,,). Lessor and Lessee agree msfollows:
A. Lessor is the owner of shares of the Capital Stock of Crafton Water Company ("Shares"); and
& 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 herebyagrees bzlease the Leased Shares hoLessee 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 treatmentb Lessee, to California
Department of Health Services, Office of Drinking Water Standards.
2. Term. The term ofthis lease shall begin onJune 6. 2VV6and end onJune l. uuu/. (in nm
event more than one year)("Leasetmnn"). 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
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event the Leased Shares are the subject matter of a condemnation award or in the event the
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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 nointerest therein, (d) inthe event there isataking ofthe
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 imnoimplied 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$392.00 upon execution of the Lease
for the Leased Shares amset 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 ofwater associated with said shares.
4. Assignability. Lessee hereby agrees that itshall not have the right bzassign, 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.
0. 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 priorhoexpiration ofthis 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 onthe 6th day ofJune 2OOG.
'Lessor" ^Lsemae:^
City ofRedlands Willis Bruns
BY: BY: