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HomeMy WebLinkAbout00686 - FRANK SINATRA & DANIEL SCHWARTZ 101369 Kathie Hart From: Janet Sheraton Sent: October 21, 2010 6.41 AM To: Kathie Hart Subject: RE: A0686 - Frank Sinatra and Daniel Schwartz Lease Agr @ PSP Yes— I started in 2000 and I do not recall this. Thank you, Janet Sheraton O Airport Asset Manager Palm Springs International Airport � 3400 E. Tahquitz Canyon Way, Suite OFC Z� Palm Springs, CA 92262 " V 760.318.3808 Q �0 760.318.3815 (fax) Janet,Sheraton@palmspringsca.gov website: www.pal.msprngsairport.com From: Kathie Hart Sent: Wednesday, October 20, 2010 5:25 PM To: Janet Sheraton Subject: A0686 - Frank Sinatra and Daniel Schwartz Lease Agr @ PSP Our records indicate this agreement expired on 10-31-1999. May Z close it? Thx! V444 Kathie Hart, CMC Chief Deputy City Clerk City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 (760) 323-8206 1 Lim' (760) 322-8332 Kathie.Hart@PalmSpringsCA,gov Please note that City Hall is open 8 a.m. to 6 p.m.Monday through Thursday,and closed on Fridays at this time. 10/21/10 ARGONAUT INSURANCE C*Ny HOME OFFICE: MENLO PARK, CALIFORNIA CERTIFICATE ARGONAUT.SOUTHWEST INSURANCE COMPANY OF HOME OFFICE BATON ROUGE, LOUISIANA INSURANCE ARGONAUT-NORTHWEST INSURANCE COMPANY G) HOME OFFICE: BOISE. IDAHO This is to certify that the COMPANY designated above has issued to the roared insured the policy(s) enumerated below,subject to all the terms of such policy(s). This Certificate of Insurance neither affirmatively or negatively amends, extends or olters the coverage afforded by such policy(s). In the event of any material change in or cancellation of the policy(s),the COMPANY will make every effort to notify the certificate holder, but undertakes no responsibility of failure to d_o so. CERTIFICATE HOLDER AND ADDRESS NAMED INSURED AND ADDRESS • CITY OF PALM SPRINGS, CALIFORNIA • SINATRA—SGHLVARTZ OFFICE OF CITY CLERK C/0 NATHAN GOLDEN L(e ASSOC. PALM SPRINGS, CALIFORNIA 450 N0. RO)(BURY DRIVE ATTENTION; JEANNE C. MENTZER BEVERLY HILLS, CALIFORNIA If certificate holder is a loss payee with respect to the described auto,check here POLICY NUMBER KIND OF INSURANCE AND COVERAGESF LIMITS EXPIRATION WORKMEN'S COMPENSATION Statutory EMPLOYER'S LIABILITY ,000 each accident BODILY INJURY LIABILITY ,000 each person EXCEPT AUTOMOBILE ,000 each accident AP-2-1683 000 each occurrence ,000 aggregate products PROPERTY DAMAGE LIABILITY $ O ,000 each accident 7-22-72 EXCEPT AUTOMOBILE * $ ,000 each occurrence $ ,000 aggregate operations $ ,000 aggregate protective $ ,000 aggregate products $ '000 aggregate contractual BODILY INJURY LIABILITY $ ,000 each person — AUTOMOBILE * $ ,000 each accident $ ,000 each occurrence PROPERTY DAMAGE LIABILITY $ ,000 each accident — AUTOMOBILE * g ,000 each occurrence MEDICAL PAYMENTS — AUTOMOBILE $ each person PHYSICAL DAMAGE—AUTOMOBILE—ACTUAL CASH VALUE UNLESS OTHERWISE STATED COMPREHENSIVE $ COLLISION OR UPSET LESS $ deductible FIRE AND THEFT $ IF COMPREHENSIVE LIABILITY, CHECK HERE Description of Operations, Locations, or Automobiles Covered; or Additional Coverages; or Special Condition. COVERING AIRCRAFT HANGER AT 3300 TAHQUITZ—IVICCALLUM WAY, PALM SPRINGS MUNICIPAL AIRPORT, PALM SPRINGS, CALIFORNIA. IT IS HEREBY UNDERSTOOD AND AGREED THAT THE CITY OF PALM SPRINGS IS NAMED AS AN ADDITIONAL INSURED ON THE ABOVE POLICY ONLY AS RESPECTS OPERATIONS OF THE NAMED INSURED. THIS COVERAGE SHALL NOT BE CANCELLED UdITHOUT AT LEAST TEN (10) DAYS PRIOR, WRITTEN NOTICE TO THE CITY OF PALM SPRINGS, PALM SPRINGS, CALIFORNIA. THIS CENT, „MENDS AND SUPERCEDES CERT. DATED SEPTEMBER 10, 1971 , PRODUCER AND ADDRESS ARGONAUT INSURANCE COMPANY • ARGONAUT-SOUTHWEST INSURANCE COMPANY BAYLY, MARTIN & FAY, INC. ARGONAUT-NORTHWEST INSURANCE COMPANY 3200 {11 HIRE BLVD. /L4 L.DS ANGELNGELES, CALIFORNIA 90010 !!! PRESIDENT DATED AT LOS ANGELES, CALIFORNIA ON SEPTEMBER 175 19 71 `�j� SECRETARY - — � IIND 61A R 9 Robert J. Pond-Hanger Lease Sinatra/Schtivartz ASSIGNMENT OF LEASE Assignment of LeaseAGREEMENT #686 1104879, 10-16-91 WHEREAS, Sinatra/Schwartz , a joint venture of Frank Sinatra and Daniel Schwartz, hereinafter called "SINATRA/SCHWARTZ" or "LESSEE" , for valuable consideration paid by Robert J. Pond, hereinafter called "POND" , the receipt whereof is hereby acknowledged, so by these presents grant, bargain, sell, assign, transfer and set over unto the said "POND" a certain Indenture of Lease, bearing the date of November 1 , 1969, and to include all Supplemental Agreements dated through November 1, 1989, made and executed by the City of Palm Springs, Lessor, to SINATRA/SCHWARTZ , Lessee. POND, in consideration of said assignment, does hereby assume and agree to perform all obligations of SINATRA/SCHWARTZ to said lease. Said assignment to be effective upon consent by the City of Palm Springs . IN WITNESS WHEREOF, t parties hereby have caused these presents aNK xecuted on t respective dates indicated/below: f INATRA V DATE a DANIEL SCHWARTZ (/ DATE d ROBERT J. POND DATE The City of Palm Springs, California, Lessor in the lease above described hereby consents to the above assignment and releases SINATRA/SCHWARTZ from any and all liability as to performance of sa lease this day of 1991 . DATT1 DATE ✓`a fry n �'..' 91 W E 13 12 - 3_0 0 P 01_. . DANIEL SCHWARTZ ADDRESSEE FAX NO. 322-4308 TO: MR. ALLEN F. SMOOT, A.A.E. ATTENTION OF: FROM: KATHYRN E. HODGES TOTAL NUMBER OF PAGES SENT (INCLUDING THIS PAGE) 2 IF ANY PAGES ARE MISSING OR IF YOU HAVE ANY OTHER PROBLEMS, PLEASE TELEPHONE (619) 324-1809 AND ASK FOR KATHY. DATE SENT: 9/25/91 TIME SENT 1:35 MESSAGE: FOLLOWING PLEASE FIND LETTER OF INTENT FROM MR. SINATRA & MR. SCHWARTZ REGARDING ASSIGNMENT OF LEASE TO MR. POND. PLEASE CONFIRM THAT THIS -• WILL BE SUFFICIENT TO GET ON AGENDA FOR NEXT COUNCIL MEETING. ALSO, PLEASE NOTE THAT WE HAVE MOVED OUR OFFICES. ALL CORRESPONDENCE, CONTRACTS, ECT, .SHOULD BE SENT TO OUR NEW ADDRESS: DANIEL SCHWARTZ 71-707 MIRAGE ROAD RANCHO MIRAGE, CA. 92270 OUR TELEPHONE AND FAX NUMBERS REMAIN THE SAME: TELE: ;324-1809 FAX: 324-0813 l� SUPPLEMENTAL AGREEMENT NO. 2 to LEASE AGREEMENT NO. 686 between the CITY OF PALM SPRINGS Palm Springs , California and MESSRS. SINATRA & SCHWARTZ Sinatra/Schwartz - Supp #2 Rental Rate & Term Option AGREEMENT #686 MO 4468, 11-1-89 SUPPLEMENTAL AGREEMENT NO. 2 TO LEASE AGREEMENT NO. 686 WHEREAS the City of Palm Springs , California , hereinafter called "CITY" or LESSOR" , and Sinatra/Schwartz, a joint venture of Frank Sinatra and Daniel Schwartz, hereinafter called "LESSEE" , entered into Agreement No. 686 effective November 1, 1969, upon the terms and conditions therein expressed and for the considerations therein set out; and WHEREAS CITY and LESSEE mutually desire to amend said lease agreement, NOW THEREFORE , CITY and LESSEE hereby mutually agree, as follows : Section 1. Article I - TERM, Paragraph "1 b)" is hereby revised to read , as follows : "For the remainder of this lease, an amount of money to be determined by revising the annual base rent of $10,922.28 to reflect the change, if any, in the cost of living as shown in the Consumer Price Index (CPI) . The rental shall be revised effective November 1 , 1989, and every five (5) years thereafter, using the CPI for the preceding July. The rent for each five-year period shall be the rent for the preceding five-year period plus a percentage of that rent which is equal to the percentage increase in the CPI for the same preceding five-year period. During any five-year period, the adjustment shall not exceed 30%. For the purpose of this computation, it is agreed that the CPI for the month of July is the base, or 100%. The CPI for July 1°� wao 99.7. The CPT_ _nde,, to be us. d is that re Elected by the "Consumer Price Index, All Items , All Urban Consumers , Los Angeles-Anaheim-Riverside Metropolitan Area, 1982-84 = 100" published by the Bureau of Labor Statistics of the U. S. Department of Labor. If there is any change in the method of calculation or formulation of said price index, for any reason whatsoever, or if that index shall be no longer published, then another index generally recognized as authoritative shall be substituted by agreement. If any event, the base used by the new index shall be reconciled to the 1982-84 index. • 0 All rentals , fees and other charges not timely received by CITY and within fifteen (15) days after receipt by LESSOR of a notice of delinquency will bear a late charge equal to five percent (5%) of the payment due and owing. If such rentals , fees and other charges are not received within thirty (30) days, interest shall accrue on the unpaid balance plus the unpaid late charge at the rate of twelve percent (12%) per annum or the highest rate which may be legally charges , whichever is lower, from the due date until paid in full . The rentals due, as set out hereinabove, shall be payable on the first of each and every month throughout the term of this Agreement." Section 2. Article I - TERM, Paragraph "2" , is hereby amended to read, as follows: 2. CITY hereby grants LESSEE an option of two (2) additional five-year periods the first of which shall be for a period beginning November 1, 1989 , and ending October 31, 1994, and the second of which shall be for a period beginning November 1, 1994, and finally terminating on October 31, 1999. In the event LESSEE desires to exercise said options , they shall be exercised not earlier than 120 days or later than 60 days prior to the effective date of each such option. This lease, ,or any assignment of this lease, shall terminate on October 31 , 1999. It is understood and agreed that, in the computation of rentals under the option, the same formula set out in Article 1 � Pai'dgrdpl'�-'1 b)' shall oe used P.11�"th-6 , tail-��""SIH-11-' ue- "- adjusted in accordance with said formula for each of the five-year option periods . It is understood and agreed, further, that any termination of this lease by either party, or either party's assignee , shall not entitle LESSEE to any compensation for unamor- tized investment. " Section 3. Article IV is hereby amended by adding Paragraph "4" to read , as follows : - 2 - "4. LESSEE shall be responsible for one-half of the maintenance cost for the aircraft parking ramp area depicted on Exhibit A to this Supplemental Agreement." Section 4. Article XX is hereby added to read, as follows : "ARTICLE XX - RECAPTURE "Upon thirty (30) days ' written notice to LESSEE , CITY may recapture the leasehold area north of the northerly wall of the hangar facili- ty, as more specifically depicted on Exhibit A to this Supplemental Agreement, with the exception of the access roadway to Alejo Road. It is agreed by the parties that said recapture shall not affect the base rental ." Section 5. Except as specifically herein modified, the terms , covenants and conditions of Lease Agreement No. 686 are hereby ratified and shall continue in full force and effect. IN WITNESS WHEREOF, the parties hereto have cused these presents to be executed on this day of JZ-6— m 1988. ATTEST: / CITY OF PALM SPRINGS , CALIFORNIA BY ( L_..-City Clerk v City Manager REVIEWED & APPROVED irL�e /270 r IqC � - ran inatra i S1NATRA/AGR6 Da6iel Schwartz i * State of /d On this the day of6-%_198-2, before * County ofd L �d-� me, 711 * the un ersigned Notary Publ ic, personally * appeared * * * and * personally known to me * proved to me on the basis of satisfactory * evidence to be the person/s who executed the * within instrument and acknowledged that he/ * they executed it. * .* it xY.:�, OF'RICVL 51',r1Y, WITNESS my hpilda and official s l B. DU� DAMS NOTARY PUBLICBUC CALIFORNIA ` CONTRA COSIA COUNTY Idy Comm Enpvos M.,62,1992 Notary s Signature ******************************************************************************* - 3 - Sinatra-Schwartz - to allow charter SUPPLEMENTAL AGR and/or air taxi operations Supplemental AGR #1 to AGR #686 Res #10178, 11-22-71 WHEREAS the City of Palm Springs, California, hereinafter called "City" or "Lessor" and Sinatra/Schwartz, a joint venture of Frank Sinatra and Daniel Schwartz, hereinafter called "Lessee", entered into Lease Agreement No. 686, effective November 1 , 1969, upon the terms and conditions therein expressed and for the considerations therein set out; and WHEREAS Lessor and Lessee mutually desire to amend said lease agreement to grant Lessee the right to engage in charter and/or air taxi operations; NOW THEREFORE, Lessor and Lessee hereby mutually agree as follows : 1. Article 11 of Lease Agreement No. 686 is hereby amended to add the following provisions : Lessee is hereby granted the right to engage in charter and/or air taxi operations either in the name of Sinatra/Schwartz, a joint venture, or in the name of Cal Jet Airways, Inc. , a California corporation, a wholly owned subsidiary of Sinatra/Schwartz. In this regard, Lessee agrees to submit to Lessor by the twentieth (20th) day of each month a detailed statement of all charter/air taxi business done at the airport during the previous month and to simultaneously submit to Lessor 1% of gross revenue derived from said air charter/air taxi operations . Lessor shall have the right at all reasonable times to inspect the accounting records of Lessee and verify the reports required, Further, Lessee shall submit to Lessor each year a copy of its ' annual certified audited report reflecting all authorized charter/air taxi operations at the airport. Such report shall be submitted as soon as is reasonable following the close of Lessee's accounting year. 2. Article 111, Subparagraph 4, of Lease Agreement No. 686 is deleted from the original agreement. 3. This amendment shall be effective December 1 , 1971 . 4. Except as specifically. herein modified, the terms , covenants , and conditions of Lease Agreement No. 686 are hereby ratified and shall continue in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on this day of 2-2 � , 1971 . ATTEST: CITY OF PALM SPRINGS , CALIFORNIA F. D. Aleshire City Clerk r BY. Z' e City Clerk City Manager 71— L3 -7 / APPROVED AS TO FORM: rank Sina Pa A4'.4��'100, -a At rney ele� Daniel Schwartz Date: Date: e C ,;yFTENTS APP OVED� „s A"/. V A N-1 ri..�' Mi rp'6rt Director a=^'x c'." Date: {5 �" ' When Recorde-lwlease Return to: h. City Clerk o�'� a City of Palm Springs 6�zo q Box 8501• ctr9 o� Palm Springs, California 92262 ��n 1✓'&I,VP cn o NOTICE OF AN' -RESPONSIBILITY M � aC Pursuant to Section 1183. 1 of the Code of Civil Procedure, State of California, the City of Palm Spriflgs shall not be responsible for the cost of any labor or materials provided or furnished for the construc- tion, alteration or repair of any improvement placed upon the Palm Springs Municipal Airport, the legal of which is shown on Exhibit "A" and Exhibit "B" attached hereto and made a part hereof by refe-rence, and which is further legally described as follows: That certain portion of Section 13, Township 4 South, Range 4 East, San Bernardino Base and Meridian, in the City of Palm Springs, County of Riverside, State of California, being more particularly described as follows: Commencing at the Northeast corner of said Section 13; then South 890 48' West along the Northerly line of said Section 13, a distance of 452. 30 feet; thence leaving said Northerly line South 0° 12' East, a distance of 471. 00 feet to the TRUE POINT OF BEGINNING; thence from said TRUE POINT OF BEGINNING North 8 9 a 48' East, a distance of 250. 00 feet; thence North 0 ° 12' West, a distance of 250. 00 feet; thence South 890 48' West, a distance of 250. 00 feet; thence South 0 ° 12' East, a dist- ance of 250. 00 feet to the TRUE POINT OF BEGINNING. CITY OF PALM SPRINGS, CALIFORNIA By City C er STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) On this 19th day of November, 1969, before me, the undersigned, a Notary Public in and for the State of California with principal office in the County of Riverside, personally appeared F. D. ALESHIRE, known to me to be the City Clerk of the City of Palm Springs, and known to me to be the person who executed the within instrument and acknowledged to me that the City of Palm Springs is the owner of said property, and that he has executed ,said Notice of Non-Responsibility according to the authority vested in him by the laws of the State of California. / � Not ry u is in a or saki C my andRState 7i GICrqL NOTAF!Y PURL'C, GlLIFq;;llu. `T.-`}lye i;dif9QP] I � Cs AT6. D1S7T 1I 2012o r F- 1 LEAS - Noss 250' Y" M` AeRES I I I B, R2� CC, LESS E I I I RAMP I I �I HANNGAR5 i F— Y }� 1BfT To AC-r- oMpANY SINATA +'� —SCHWARTZ j ^�I `M 5 CaAI.. U�ANt�S 6'O,C. �<"is � n.G.ac4G��1(a—�• n 6 CHAW LINK FELtCE 6' PLANiER tt IL;;o, A� XH6 'IT a5~ �ro arcaMPAAI� IbtE SGIiWARC� SINATRA > EASE� INDENTURE OF LEASE Sinatra-Schwartz lease at Airport Agreement No AGREEMENT #686 (Original) 10-13-69 Res #9624, 10-13-69 THIS INDENTURE OF LEASE, made and entered into by and between the CITY OF PALM SPRINGS, CALIFORNIA (hereinafter called "City" or "Lessor") and SINATRA-SCHWARTZ, a joint venture of Frank Sinatra and Daniel Schwartz (hereinafter called "Lessee") , having its usual place of business at Law Offices of Milton A. Rudin, 6922 Hollywood Boulevard, Hollywood, California 90028. W I T N E S S E T H: WHEREAS, City owns and operates the Palm Springs Municipal Airport and has thereon certain properties, facilities and rights which it desires to lease; and WHEREAS, Lessee desires to construct and thereafter operate and maintain a 10,000 sq. foot airplane hangar; NOW, THEREFORE, for and in consideration of the rents , covenants and agree- ments made and contained herein and for other valuable considerations, the receipt of which are hereby acknowledged, City does hereby demise, rent and let to Lessee, and Lessee does hereby hire, take and lease from City the following premises, and rights under the conditions and for the period as specified in this agreement: a) A parcel of land approximately 1..43 ,acres in size located on the Palm Springs Municipal Airport north of the Civic Center, all as more particularly described in attached Exhibit "A% b) The right to the exclusive use of the premises demised for the purpose of constructing and operating a 10,000 square foot hangar. ARTICLE I - TERM The term of this lease shall be for a .period of ten (10) years beginning on November 1 , 1969 and terminating on October 31 , 1979 unless sooner terminated in accordance with any of the provisions of this Lease. 1 . Lessee agrees to pay to City as rental for the land and rights hereby dernised the following amounts. a) For the first five years of tYris lease an amount of Eighteen Thousand Seven Hundred Twenty ($18,720.00) Dollars payable monthly in advance in amounts of Three Hundred Twelve ($312.00) Dollars on the first business day of each month. Rent for a partial month shall be prorated on a 30-day basis. b) For the remaining five years of this Lease, in equal monthly payments in advance, an amount of money to be determined by revising the first five years ' rent in, accordance with the follow- ing factors: (1 ) Fifty percent (50%) of the percentage increase or decrease of the Consumer Price Index of the Bureau of Labor Statistics of the U. S. Department of Labor. For the purpose of this computation, it is agreed that the Consumer Price Index of 126.7 for the monthiof June, 1969, is the base, or 100%. (2) Fifty percent (50%) of the percentage increase or decrease of the appraised value of the property which is the subject of this Lease, excluding the value of improvements made thereon by the Lessee. For the purpose of this computation, it is agreed that the appraised value of $32,500 per acre, capitalized— at 8% is the base, or 100%. 2< Lessor hereby grants Lessee an option for 2 additional 5-year periods, the first of which shall be for a period beginning November 1 , 1979 and ending October 31 , 1984, and the second shall be for the period beginning November 1 , 1984 and finally terminating October 31 , 1989. In the event Lessor, desires to exercise said options they shall be exercised not earlier than 120 days or later than 60 days prior to the effective date of each such option. It is specifically understood and agreed that in the computation of rentals .under the option, the same formula set out in Article 1 , paragraph 1 (b) shall be used, and that rentals shall be adjusted in accordance with said formula for each of the 5-year option periods. ARTICLE II - RIGHTS OF LESSEE Lessor agrees that Lessee, upon paying the rental hereunder and per- forming the covenants of this agreement, may quietly have, hold and enjoy the leased premises during the term of this Agreement, and -2- that Lessee shall have the right to use, in common with others, the public facilities at the Airport. Lessee shall also have the right of ingress and egress from its leased premises and the public facilities for its employees , visitors and customers. ARTICLE III - RESTRICTIONS ON LESSEE 1 . Lessee shall be specifically excluded from the right to sell , store and/or deliver aircraft fuels and lubricants on the airport. Lessee shall be specifically excluded from engaging in the storage or servicing of aircraft within the leased premises unless such aircraft are owned or operated by Lessee. 2. Lessee shall not sell , or bring on the airport to be sold, any foods or beverages unless prior permission for such activity has been requested and received in writing from Lessor. 3. Lessee shall not sublease any of its premises or other rights on the airport to any other party, whether or not such be presently tenants of the airport, without the written permission of Lessor. Such permission shall not be unreasonably withheld but may be conditioned on the payment of additional rents or on the agreement of Lessee and the proposed subtenant, to additional lease conditions as may be considered by Lessor to be- necessary for the protection of the rights of other airport tenants, the airport or the City of Palm Springs. 4. Lessee shall not engage, in any commercial activities offering ser- vices of any kind to the general public on the demised premises ; leasing or chartering of the aircraft from time to time on a non- public basis shall not be included in this definition of "commercial activities." ARTICLE IV - OBLIGATIONS OF LESSEE 1 . Lessee agrees, without limiting the generality thereof to -3- observe and obey and to compel any of his employees, invitees or those doing business with it to observe and obey all such rules and regulations of Lessor which are now in effect or which may hereafter be promulgated, provided that such further rules and regulations shall not unreasonably conflict with the provisions of this lease. 2. Lessee agrees to provide its own janitor and cleaning services and to main- tain at all times its leased premises in a clean, orderly, sanitary condition to standards satisfactory to theCity. Lessee shall also provide for its trash removal at its own expense. 3. Lessee shall arrange for all utility services and pay for such services on its leased premises. ARTICLE V - LESSEE'S RIGHTS NON-EXCLUSIVE Nothing contained in this agreement shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section ,308 of the Federal Aviation Act of 1958, ARTICLE VI - LESSOR'S RESERVED RIGHTS 1 . Lessor reserves the right to further develop or improve the aircraft operat- ing area of the airport as it sees fitand to take any action it considers necessary to protect the aerial approaches of the airport against obstructions together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on the airport which, in the opinion of Lessor, would limit the usefulness of ,the airport or constitute -a hazard to aircraft. 2. During the time of war or national emergency, .Lessor shall have the right to lease the airport or any part thereof to the United States Government for military or naval use. The Lessor agrees that the Lessee shall be permitted to attend and fully participate with Lessor in any and all proceedings with respect to any such leasing appropriation, taking or closing relating in any manner to the matter of the award that may be made by reason thereof and that the acceptance by Lessor of any award shall not, unless agreed to by Lessee, be binding upon Lessee. �.�._.;`r.'3Y"' ,�i'�iFS'r::'t F„„.ip"i�r(�' aitt�i; °C�@" z;tYFi>l'.+t�' +�•t? C.-`� -4- 3. Any other provisions of this lease notwithstanding, this lease shall be subordinate to the provisions of any existing or future agreement be- tween Lessor and the United States relative to the operation or maintenance of the airport, the terms and execution of which has been or may be required as a condition precedent to the expenditure or reimbursement to Lessor of Federal -Funds for the development of the airport. 4. Lessor, through its duly authorized agent, shall at all times have the full and unrestricted right to- enter the- leased premises for the purpose of inspection or maintenance and for the purpose of doing any and all things which it is obligated and has a right to 'do under, this agreement. ARTICLE VII - CONSTRUCTION ON PREMISES 1 . Lessee intends to construct certain facilities and buildings on the demised premises; however, Lessee may not alter the premises or add any construction without receiving prior written permission from Lessor, such permission being contingent on having the site, landscaping and construction plans approved,by the appropriate agencies of the City. It is understood and agreed that Lessee shall install all utilities and shall install and main- tain the landscaping on two sides of the leased premises, together with trees and sprinklers, as more particularly set out in the sketch attached hereto as Exhibit "B" and made a part hereof. 2. Within thirty days following .completion of any construction on demised premises, Lessee shall give to Lessor for filing a complete set of "As Built" drawings including, but not limited necessarily to,all underground facilities.. 3. It is specifically agreed that, at the sole option of the City, the improvements constructed on the leasehold shall become the property of the City, free and clear of any and all encumbrances at expriation or termination of this agreement or any extension thereof, 4. Lessee agrees without limiting the generality thereof, in constructing all improvements on the leasehold, Lessee will hold Lessor harmless from and against claims, liens or attachments of any kind or type whatsoever, Lessee further agrees that Lessor shall have the right to post notices of non-responsibility .as provided .by.Section 1183 of the Code of Civil Procedure of the State of California. Lessee further agrees to hold Lessor harmless from and against any claims or causes of action which -5- 0 might result from Lessee's use of the property, whether caused by the negligence of the Lessee, falling aircraft or any other cause, save and except damages caused by the negligence of- the Lessor. ARTICLE VIII - DISPLAY OF SIGNS Lessee shall not erect, maintain or display any signs or other advertis- ing at or on the exterior ,parts of the leased premises without first obtaining the written approval of Lessor, which approval shall not be unreasonably withheld. ARTICLE IX - INSURANCE AND INDEMNITY 1 . At all times during the term of this lease, Lessee will maintain in force a comprehensive liability insurance policy in a form satisfactory to the City's attorney in an amount of not less than Two Million ($2,000,000) Dollars single limit for personal injury or death of any persons in any one accident, and/or for damage to property result- ing from each accident. When insurance is provided by a policy or policies which also provide insurance for the Lessee or anyone other than the parties hereto, then such policy or policies shall also contain a standard cross liability endorsement. The policy shall also provide that a written notice of cancellation or of any material change in the policy shall be delivered to Lessor 10 days in advance of the effective date thereof. Certificate of insurance shall be delivered to the Lessor upon issuance and before operations under this agreement commence evidenc- ing the above specified coverage, 2. The Lessee shall indemnify and hold the Lessor harmless from any and all demands, losses , liabilities or judgments , together with costs and expenses incident thereto which may accrue against, be charged to, or be recoverable from the Lessor as a,result of the acts or omissions of the Lessee, its employees or agents. The Lessor shall give prompt and timely notice to the Lessee and the Lessee shall also give such notice to the Lessor of any claim made or suit instituted which might directly or indirectly affect the other party -6- 0 hereto. Both parties shall have the right to compromise or participate in the defense of any such matter to the extent of its own interests. 3o Fire Insurance. Lessee shall procure and maintain in effect during the term of this agreement fire and extended coverage insurance insuring the building or structures to be added to the demised premises in an amount equal to eighty per- cent (80%) of the actual value of said improvements and structures. Insurance policies covering all buildings and structures on the demised premises shall name the Lessor as an additional insured. A certified copy of each policy or a certificate evidencing the existence thereof shall be on file with or delivered to Lessor within ten (10) days after the execution of this lease.. Each such copy or certificate shall contain an endorsement obligating the insurance carrier to furnish Lessor at least ten (10) days notice of any intended cancellation. ARTICLE X - TERMINATION BY LESSOR Lessor shall have the right upon written notice to Lessee to can- cel this Agreement in its entirety, upon or after the happening of one or more of the following events, if said event or events shall then be continuing:, 1. If Lessee shall make a general assignment for the benefit of creditors, or file a voluntary petition in bankruptcy or a petition or answer seeking its reorganization or the readjustment of its indebtedness under the Federal Bank- ruptcy Laws or any other similar law or statute of the United States of any state, or government, or consent to the appointment of a receiver, trustee or liquidator of all or substantially all of the property of Lessee; 6-a 2. If by order or decree of a court of competent jurisdiction Lessee shall be adjudged bankrupt or an order shall be made approving a petition seeking its reorganization, or -the readjustment' of its indebtedness under the Federal Bankruptcy Laws 'or any law or statute of the United States or any state, territory,-or-possession thereof, or under the law of any other state, territory or possession thereof, or under the law of any other. state, nation or government, provided, -that if any such judgment or order be stayed-or vacated within ninety (90) days after the entry thereof, any notice of cancellation given shall be and become void and of no effect; 3. If by or pursuant to any order or decree of any- court-or governmental authority, board, .agency, or officer having jurisdiction, a receiver, trustee, or liquidator shall take possession or-control -of all or sub- stantially all of the property of Lessee for the benefit-of creditors, provided, that if such order or decree be stayed-,or,vacated within sixty (60) days after the entry thereof or during such longer period in which Lessee diligently and in good faith cohtest-the-same, any notice of cancellation shall be and.become null,; void'and no-effect; 4. If Lessee shall fail to pay the rental charges: or other money payments ; required -by this instrument and such failure shall not be remedied within ten (10) days following receipt- by Lessee of written demand from Lessor so to do; 5. If Lessee shall default in fulfilling-any of-the 'terms, covenants or conditions to be fulfilled by it hereunder and shall fail to remedy said default within thirty (30) days following receipt by Lessee of written demand from Lessor so to ,do, or if,: by reason of the nature of such default the same cannot be remedied within-thirty (30) days following receipt by Lessee of written demand from Lessor so to do, then, if Lessee shall have failed to commence the remedying of such default. within said thirty (30) days following such written notice, or hav- ing so commenced, shall fail thereafter to continue-with diligence the curing thereof; b-b o. if Lessee shall abandon any of the premises leased to it hereunder for a continuous period of sixty (00) days at any- one- time except when such abandonment be caused by fire; earthquake, war; strike or other calamity beyond Lessee's control . in the event of any cancellation or termination of this Agreement by Lessor under the circumstances specified in this Article X, all fixed improve- ments erected or installed in or upon the demised- premtses ,by Lessee shall become the absolute property of Lessor, as if this 'Agreement` had expired by lapse of time. ARTICLE XI - TERMINATION 6Y LESSEE Lessee shall have the right, upon written -notice to Lessor, to cancel this Agreement in its entirety upon or after the happening of one or more of the following events, if said event shall then- be continuing 1 . The issuance by any court of competent jurisdiction of-an injunction, order or decree preventing or restraining the use by Lessee of all or any substantial part of the demised premises or preventing or restrain- ing the use of the Airport for usual airport-purposes in -its entirety, or the use of any part thereof which maybe used by Lessee and which is necessary for Lessee's operations on the Airport, which remains in force unvacated or unstayed for a period of at least one hundred and twenty (120) days; 2. The default of Lessor in the performance of- any or" the terms, covenants, or conditions to be fulfilled by it under this instrument and the failure of Lessor to cure such default within- a period of thirty (30) days following receipt of written demand from-Lessee so to do, except that if by reason of the nature of such default, the sa:de cannot be cured within said thirty (30) days, then Lessee shall have the right to cancel if Lessor shall have failed to commence to-remedy such de- fault within said thirty (30) days following receipt of such written remand, or having so commenced, shall fail -thereafter to continue with diligence the curing thereof; - 7- 3. If the fixed improvements placed upon the demised premises shall be totally destroyed, or so extensively damaged that it would be impractical or uneconomical to restore the same- to- their previous , condition, as to which Lessee shall be the� sole judge. In any such case, the proceeds of- insurance, if any, . payable- by reason of such loss. shall ,be apportioned between Lessor and Lessee, Lessor receiving the same proportion of such- proceeds as the then expired portion of the lease term bears to the full term hereby granted, -and Lessee receiving the balance thereof, If the damage shall result from an insurable cause and shall be only partial and such that the said fixed improvements can,'be°'restored, to their prior condition within a reasonable time, ' then' Lessee shall restore the same with reasonable promptness, and shall -be entitled to receive and apply the proceeds of any insurance covering- such loss to said restoration, in which event this Agreement shall .not be cancelled but shall continue in full force and' effect,-and in such case any excess thereof shall belong to Lessee; 4. In the event of destruction of all or a•material portion of the airport or the airport facilities; or ,in the event that any agency or, instrumentality ,of- the United 'States Government or any state or local government shall occupy the airport .or a substantial part thereof, or in the event of military mobilization or public emergency wherein there is a curtailment, either by executive decree, or legislative action, of normal civilian traffic at the airport. 5. The taking of the whole or any part of the demised premises by the exercise of any right of condemnation or eminent domain. ARTICLE XII - LESSEE'S IMPROVEMENTS The fixed improvements to be constructed and installed by Lessee pursuant to this Agreement are estimated to involve a total cost of approximately Seventy Five Thousand ($75,000) Dollars. As soon as practicable _g_ following completion, Lessee shall submit to Lessor an itemized statement, certified by an officer of Lessee, showing the actual cost of said fixed improvements, and shall , if so requested by Lessor, produce copies of all invoices and other records in connection therewith, The costs shown in said itemized statement shall , unless disputed in writing by Lessor within sixty (60) days next following receipt thereof" from Lessee, be accepted as the "actual cost" of Lessee's improvements for all purposes of this lease. Any such dispute shall be resolved promptly by a qualified, disinterested third party agreed upon by Lessor and Lessee, who shall share the expense equally. Lessee shall , for the purposes of this agreement in determining the rights of the parties , fully amortize said actual cost,on a straight line basis without allowance for salvage, commencing with the date on which said fixed improvements are completed and ready for occupancy by. Lessee, and extending over the original ten year term of this lease. ARTICLE XIII - LESSEE'S RIGHTS ON TERMINATION In the event of any termination of this lease ,prior to the expiration date set forth in Article I hereof (except when such termination (i) is due to default by Lessee under this Lease, or (ii ) results in payment to Lessee out of insurance proceeds, condemnation awards or other source, of compensa- tion for loss of its investment in the fixed improve- ments on the basis of Lessee's actual cost less amortization to the nearest complete month of the term, as provided in Article XII), and in the further event that- Lessor shall fail or reruse to purchase said fixed improvements at a price-equal to said actual cost less amortization within sixty (60) days after such termina- tion of this Lease, Lessee shall have the rights notwithstanding any- thing to the contrary contained in this Agreement, to sell said fixed improvements to any person or organization having the right to trans- act business on the Airport, who or which is willing and able to lease said premises from Lessor for a 'period not shorter than the remaining unexpired term on substantially the same terms' and 'conditions contained in this Lease, subject, however, to: approval by-Lessor-of such purchasor's financial standing and reliability, which approval shall not be un- reasonably withheld. In the event of such sale by Lessee, Lessor shall promptly offer to lease the- premises to 'such purchaser,as aforesaid. ARTICLE XIV : WAIVER OF PERFORMANCE The• failure of either party to insist in any instance upon a strict performance by the other party of any of^the provisions , terms, covenants, reservations, conditions, stipulations'contained 'in this Agreement shall not be considered a waiver• thereof, and the•same' shall continue and remain in full force and effect. No waiver• by the City of any provision, term, coveant, reservation, condition or stipulation contained in this Agreement shall be deemed to have been made in any instance unless expressed in the form of a resolution by the• City Council . ARTICLE XV - INDEPENDENCE OF CONTRACT It is further mutually understood and agreed by the parties hereto that nothing herein shall be construed as in anywise creating the relationship of copartners between the parties or as constituting the Lessee, the agent or employees of the City for any purpose whatsoever. ARTICLE XVI - NOTICES Notices to the City provided for herein shall be sufficient if sent by registered mail , postage prepaid, addressed to the City Manager, City Hall , Palm Springs, California, and notices to the Lessee if sent by registered mail , postage prepaid, addressed to the Lessee at its place -10- i • of business at the Airport or as otherwise specified in writing by Lessee from time to time. ARTICLE XVII - ASSIGNMENT OF CONTRACT The Lessee shall obtain the City's consent in writing prior to doing any of the following: (a) assigning or otherwise transferring this lease or any rights hereunder. ARTICLE XVIII - DEFAULT IN RENT If the Lessee becomes in arrears in the payment of rent due hereunder for a period of ten (10) days, or if the Lessee shall cease to operate as required in this Agreement, or it neglects to perform any of the covenants contained herein for a period of not less than thirty (30) days after the City has notified Lessee in writing of the Lessee's default hereunder, then, in any event, the City may immediately. without demand or notice, enter Lessee's premises and repossess the same, In such an event, the Lessee and those claiming under it shall vacate the premises immediately. ARTICLE XIX - TAXES The Lessee further agrees to pay all taxes or assessments lawfully imposed on the Lessee. ARTICLE XX - INVALID PROVISIONS The parties agree that in the event any covenant, condition, or pro- vision herein contained is held to be invalid by any court.of com- petent jurisdiction, the invalidity thereof shall in no way affect any other provision of this Agreement if the provision does not materially prejudice either the Lessee or the City in their respective rights and obligations hereunder. -11- �AR) ICLE XXT - NON-DTSCi27N1NAT:ON AND FAA RE U`NED'CLAUSES The Lessee, 'in the operations to be conducted pursuant to the provisions of this Agreement and otherwise in the use of the Airport, shall not discriminate against any person or class of-pe'rsons� by reason of race, color, creed or national origin as in any manner prohibited by Part 15 of the Federal Aviation•Regulations•-or-any,amendments thereto, The Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis-to -all users thereof, It shall charge fair, reasonable and -not -unjustly-discriminatory prices for each unit or service; provided, however; that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price -reductions -to-volume purchasers , and in accordance with the other provisions-of-th`fis license with regard to discounts and rebates. Non-compliance with these provisions-shall constitute a material breach of this Agreement, in the event of"such non-compliance, the City shall have the right to terminate without liability;- or at the election of the City or the United States, both shall have the righ t to judicially enforce the above provisions. The Lessee agrees to insert the anti=discrimination provisions herein- above enumerated in any agreement-by which said Lessee grants a right or privilege to any person, firm or corporation' to render accommoda- tions and/or services to the -public on the subject-premises. The City also reserves the right, but shall not be obligated to the Lessee, to maintain and keep in repair the landing area of the Air- port as well as publicly-owned facilities of the airport together with the right to direct and control the activities of the Lessee in this regard, -12- The Lessee hereby agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event any future structure or buflding- is' planned o•r' in the event of any planned modification or alteration of any present or future build- ing or structure situated on the leased premises. The City hereby reserves a right of flight for"the passage of aircraft in the airspace above the surface of the subject premises together with the right to create in said airspace such-noise as is or shall become inherent in the operation of aircraft operating on-the-Airport. The Lessee, by accepting this license, expressly agrees for itself, its successors and assigns that it shall not erect, nor permit the erection of any structure or object nor permit the growth- of-any tree on the land leased hereunder above the mean sea level elevation of five hundred (500) feet. In such an event, the- City reserves the right to enter upon the land leased hereunder and require Lessee to remove the offending structure or object at the expense of Lessee. The Lessee, by accepting this Agreement, expressly agrees for itself, its successors and assigns that it shall not-use the licensed premises in any manner which might interfere with the landing and taking off of aircraft from or on the Palm Springs Municipal- Airport or otherwise create a hazard. In such an event, the City reserves the right to enter upon subject premises and cause the abatement of the interference or hazard at the expense of the Lessee. This agreement, and all the provisions hereof, shall be subject to what- ever right the United States Government now has or in the future may have or acquire, affecting the control , operation,' regulation or commandeering of the Airport or the exclusive or non-exclusive use of the Airport by the United States during the time of war- or national emergency. -13- i Nothing contained in this Agreement shall be- construed to grant or authorize the granting of an exclusive right within the meaning of i j Section 308 of the Federal Aviation Act of 1958, as amended. i ARTICLE XII - ARBITRATION I I to negotiations stipulated in this lease or with respect to y dispute that may develop concerning provisions herein, then s dispute shall be submitted to arbitration. Each party it appoint one � 4 I arbitrator, and these two arbitrators s appoint a third arbitrator. Said arbitrators shall hold heari s and receive evidence from both i parties according to the r s of the American Arbitration Associati and the laws of the ate of California. Said arbitrators shall arrive at a ision and that decision shall be binding upon the pantie ereto. The cost of any such arbitration shall be bo e 'I 1 IN WITNESS WHEREOF, the parties hereby have caused these presents 1 to be executed on the respective dates indicated-below: + ATTEST: CIT OF PALM SPRINGS, CALIFORNIA l F. Do ALESHIRE r` Clt IV5SZ it Managerp By re.wGf 5.4 e%l ra De u APPROVED AS TO FORM F'R/4� K SINATRR 'I City Attorney � 41 D NIEL SCHWARTZ j Date:,> Date: /0- /3 -6y TENTS APPROJJ`ED i Airport Director Date: l fl il. "I � -ri�r I PRO CIL BY RES. 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EE � COUNTY OF i OS ANGELES :G'.IF�GIo SV9Oee�e. SAE OF CILIFOI N�.', - ��,q ., i ­S 011 l,''iILTON 3Ui, � c Jl �e J_`i .. ..;` 6922 :,DiI woCl. BouleVa-trQ Hoilywoon, C�a 90628 (a' yl � AND wt;�N NEcoeDEn MAIL TO 1 r ..,J C` Ao ca Seine as above s��z5��.c - c� � � � > ,, W C 1 J tL Saraof 011 i' �.� --11 m n- nad,a„ 11�y c SlaCity toa SPACE ABOVE 71-0iS LINE FOR RECORDER'S USE L ' T1ir 1i<J LU1 r0 425 C TMUl FORM FURMSHED SY rt r-E INSURANCE AND TRUCT COMPANY anow� '.Pit Men by These Presents: That I, 'DANIEL SCHWARTZ � FEE 'I the undersigned (jointly and severally, if more than one) hereby make, constitute and appoint p MILTON A- RUDIN my true and lawful At for me and in my name, place and stead and for my use and benefit: (a) To ,s!., demand, sue for, recover, collect and receive each and every sum of money, debt,account, legacy,bequest,interest, dividend, annuity and denwnd (which now is or hereafter shall become due,owing or payable) belonging to or claimed by me,slid to use and take any lawful mamas for the recovery thereof auy legal process or otherwise, and to execute and deliver a satisfaction or release therefor, together with the ri;ht ann power to compromise or compound any claim or demand; (b) 'Lo e-seise any or all of the -following powers as to real property, any interest therein and/or any building thereon: To contract for, purchase, receive and tale possession thereof and of evidence of title thereto; to lease the same for any term or purpose, including leases for bust:c resadence, and oil and/or mineral development; to sell, exchange, grant or convey the same with or without warranty; and to mortge;,r„ p , s,er in ,rust, or otherwise encumber or hypothecate the same to secure payment of a negotiable or non-negotiable note or performance ni --.I obligation or agreement; (c) "f., ceon,se any or all of the following po,acrs as to all kinds of personal property and goods, wares and merchandise, ehoses in r action .,ml.tiu'r ,roperiy in possession or in action: To contract for, buy,sell,exchange,indorse,transfer and in any legal manner deal in and with tl:, .:vr- —Id to mortga;c, transfer in trust, or otherwise encumber or hypothecate the same to secure payment of a negotiable or nun-nol, note or performance of any obligation or agreement; i:oaow money and to maccuto and deliver negotiable or non-negotiable notes therefor with or without security; and to loan P moae, ._- rcce.vc negotable or non-negotiable notes therefor with such security as he shall deem proper; 11_ to create, amend, supplement and terminate any trust and to instruct and advise the trustee of any trust wherein I am or may be tru:,11 Veer„,`;ic.ym; is represent and vote stock, exercise stock rights, accept and deal with any dividend, distribution or bomis, join in �. , y ., i:_nncg, recrgmi atacn, merger, liquidation, consolidation or other action slid the extension, compromise, conversion, adjust. m r't or .oceclosure, singly or in conjunction with others of :-iy corporate stock, bond, note, debenture or other security; "to con-; a;nanromise, adjust, settle and satisfy any obligation, secured o; unsecured, owing by or to me and to give or accept any property _,racy lac:her or not equal to or less in value than the amount owu,g in payment, settlement or satisfaction thereof; .rLmacL business of any kind or class and as my act and deed to sign, execute, acknowledge and deliver any deed,lease, assign- ... _ - eovenant, indenture, indemnity, agreement, mortgage, deed of trust, assignment of mortgage or of the beneficial interest under 'I c_a, .. ..usi, tr:,ensiun or renewal of any obligation, subordination or waiver of priority, hypothecation, hortatory, charter-party, bill of bit; ',oad, note, whether negotiable or non-negotiable, receipt, evidence of debt, full or partial release or satisfaction of „ct.t and other debt, request for partial or full reconveyance of deed of trust and such other instruments in writing of any .. ..,y be necessary or proper in the premises. unto my said Attorney full power and authority to do and perform all and every act and thin, whatsoever or ccpronriate to be done in and about the premises as fully to all intents and purposes as£might or could do i, f,rrsonally - ..:_fyin 1 all that my said Attorney shall lawfully do or cause to be done by virtue of these presents. The powers an, authority apon nay said Attorney shall be applicable to all real and personal property or interests therein now owned oe hen::fter ac- wherever situate. .ley :e orn'nowered hereby to determine in his sole discretion the time when, purpose for and manner in wA-ca ;, power cpon 1., . cindi be exercised, and the conditions, provisions and covenants of any instrument or document w:Sr. •_ay be ,ursun— ❑ereto; and in the acquisition or disposition of real or -ensonal property, my said Attorney shall her. :dusive .-ms 'a„_oaf for cash, ;:ed;t and/or property, and ff on credit with or 'without security. nd, _ --cried *,roman, hereby mriber authorizes and empowers my said Attorney, as my duly an,norized ri nt :.a in any instillment by which any community real property or any interest therein, now owned or her,-.:. .:_cad ., any,elf, c: either of us, is sold, leased, encumbered, or conveyed. _ - .. ,_.ext ono requires, 'the masculine gender includes the feminine and/or neuter, and the singnlar'nuume- inclufa- } .tan,. t.s_2Ist —day of August ` — - - DANIEL SCHWARTZ -- -� -�- ra Alameda ss. T--- R.r 77_ 1968 before m;, the under- .,... _ - "art.' ! •. 1 , �n-, :tab' a ',nd fur -6 SLaLt pemonaiiy appeared _:_... - D,.N_­lLL__SrHLJARLT2_ a known to me u'.... C y - ' ,-.•; ilia. .,.r.., ,,enr,ed to the within :h_:— hP_ leased u,c same. .: or Printed)