HomeMy WebLinkAboutContracts & Agreements_80-2007_CCv0001.pdf SHARES LEASE
This Shares Lease ("Lease") is entered into between the City of Redlands
("Lessor") and Debbie Prutsman, an individual, ("Lessee"). Lessor and Lessee are
sometimes individually referred to herein as a "Party" and, together, as the "Parties."
RECITALS
Whereas, Lessor is the owner of shares of the Capital Stock of Crafton Water
Company ("Shares"); and
Whereas, Lessor desires to lease 5 of her Shares (hereinafter the "Leased
Shares") to Lessee on the terms and conditions set forth hereinafter;
NOW THEREFORE, in consideration of the mutual promises contained herein,
Lessor and Lessee agree as follows:
AGREEMENT
1 Lease. Lessor hereby agrees to lease the Leased Shares to Lessee and
Lessee agrees to lease same from Lessor for the purpose of providing water to Lessee.
Said water shall not be used by Lessee for human consumption prior to treatment by
Lessee, to California Department of Health Services, Office of Drinking Water
Standards.
2. Term. The term of this lease shall begin on June 1, 2007 and end on the
date of the Bear Valley Mutual Water Company's annual shareholder meeting for the
calendar year 2008 ("Lease Term"). 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 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 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
Lessee shall be entitled to a pro rata refund of the Rent, as defined 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 shall pay Lessor the sum of Two Hundred Fifty-Five Dollars
($255) upon execution of the Lease for the Leased Shares as set forth herein.
4. Assignability. Lessee shall not have the right to assign, sublet or
otherwise transfer or encumber the Leased Shares under this Lease.
5. Voting Rights. Lessor retains voting rights associated with ownership of
the Leased Shares.
DMAgreementsTrutsman Shares Lease
6. Waiver. Lessee shall 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.
7. Attorneys' Fees. In the event any action is commenced to enforce
or interpret the terms or conditions of this Lease the prevailing Party shall, in
addition to any costs and other relief, be entitled to the recovery of its reasonable
attorneys' fees, including fees for the use of in-house counsel by a Party.
This Lease is executed on 15th day of May, 2007.
"Lessor' "Lessee"
City of Redlands Debbie Prutsman
By: By:
Jon Harrison Debbie Phrutimah
Mayor
Attest,
City Clerk
DMAgreements\Prutsman Shares Lease 2