Res 1986-116 - Laserfiche WebLink

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SHAREHOLDERS own, and desire to sell, all of the issued and outstanding shares of COMPANY ("Shares"). COMPANY and NPC agree that retail water service ultimately provided by the City of San Marcos would be in the best interests of the existing and future residents of all areas within COMPANY'S certificated water service area. NOW, THEREFORE, for aad in coasideration of the mutual covenants and agreements contained herein, the parties agree as follows: 1. NPC hereby agrees to: a. b. c. d. e. Loan COMPANY, on or before September 25, 1986, the sum of $308,700.00 payable upon the terms and conditions stated in the promissory note and accompanying security instruments attached hereto as Exhibits" A" and "B" and incorporated herein for all purposes. Purchase one Share from Ruth Ann Hoch for $1700.00. Assume the management of COMPANY as a "Close Corporation" without a Board of Directors. Acquire, through COMPANY'S dissolution, the Assets no COMPANY has discharged all liabilities, and dissolved than September 30,2007. liquidation and earlier than the date of its debts and itself, but no later Allow COMPANY, in accordance with the terms of an Agreement between the City of San Marcos and COr-lPANY attached hereto as Exhibit "C" and incorporated herein, to continue to collect all revenues from all customers that receive water from COMPANY and that are located in areas that have been annexed by the City of San Marcos for a minimum of three (3) years from the date of annexation. The Agreement between the City of San Marcos and COMPANY provides that the City of San Marcos shall have the right to begin serving these newly annexed customers after its acquistion of that portion of the system serviag the newly annexed customers, pursuant to the terms under its Agreement with COMPANY at municipal rates charged to customers within the city limits of the City of San Marcos after trie minimwTI three (3) year period and to thereafter collect the revenues from all these customers. If the City of San Marcos does not beg in serving the newly annexed custO(llers i~nediately after the three (3) year period, COMPANY may continue to serve these customers and collect the revenues until such time as the City of San Marcos elects to exercise its right to provide water service to the newly annexed customers or until the remaining water utility system is acquired by NPC, whichever occurs first. Water service by the City of San Marcos as described herein shall be provided in accordance with its then applicable water service rules and regulations. 2.