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HomeMy WebLinkAbout00905 - LBC ENTERPRISES FUNDING LANDSCAPE EASEMENT TRACT 4527-2 SUNRISE LBC Enterprises - Funding agr re FUNDING AGREE 'Bnice Sunrise Way Lndscp Easmnt FOR for TR 4527-2 MAINTENANCE OF SUNRISE WAY AGREEMENT #905 (Drig 2-5-73) * ** ******* r* ********** appr in Cncl mtg 1-31-73 THIS AGREEMENT is entered into this -.< day of February, 1973, by and between the CITY OF PALM SPRINGS, CALIFORNIA, herein- after referred to as "CITY" , LBC ENTERPRISES, a partnership, herein- after referred to as "LBC" , the ESTATE OF VERA JOY SAUBEL as successor lessor under Business Lease PSL-154, hereinafter referred to as "SAUBEL ESTATE" , and ROBERT SAUBEL, lessor under Business Lease PSL-156, hereinafter referred to as "ROBERT SAUBEL" . This agreement is made with reference to the following recitals: A. Business Lease PSL-154 dated April 14, 1972 was executed by VERA JOY SAUBEL, as lessor, with LBC ENTERPRISES, a partnership as lessee, and recorded on July 13 , 1972 with the County Recorder of the County of Riverside as Instrument No. 92196 . The lessor is now deceased and the property described in such lease as Indian trust property is being administered by the Bureau of Indian Affairs . B . Business Lease PSL-156 dated October 12, 1972 was executed by ROBERT SAUBEL, as lessor, with LBC ENTERPRISES, a partnership, as lessee, and recorded the 2nd day of February, 1973 , with the County Recorder of the County of Riverside as Instrument No. 14457 C. Such leases contemplate that the lessee will subdivide such property for single family dwellings with approximately 140 to 150 residential lots . D. The CITY as a condition of approval of the development plan and subdivision maps on the property described in said leases has required LBC to dedicate to the City of Palm Springs a 40 foot easement fronting upon Sunrise Way to provide for landscaping, l r1 beautification and for a pedstrain walkway. E . The parties to this agreement are seeking a feasible method by which the individual lot purchasers of the subdivided lots on the property located within said leases can be required to contribute a reasonable sum to the maintenance of said landscape easement. NOW, THEREFORE, for and in consideration of the mutual conditions and covenants as set forth herein, the parties agree as follows: 1. ) LBC and the lessors under said leases with the approval and concurrence of the Bureau of Indian Affairs have reached an agreement on a schedule of rents to be charged for each of the single family lots contemplated in the development of the property within such leases. LBC agrees to add as monthly rental an additional sum of $4. 00 per month to each of the lot lease assignments at such time as a residential lot lease assignment is entered into with the buyer of a leasehold on a residential lot within the property described in such business lease. 2. ) The SAUBEL ESTATE and ROBERT SAUBEL as lessors under said leases, and the Bureau of Indian Affairs pursuant to their consent and approval to this agreement, hereby agree that they will collect such $4 . 00 per month payments along with the regular rental payments under such leases and will remit such sums so collected to the City of Palm Springs at least twice annually on or before the 15th day of January and on or before the 15th day of July of each year of the remaining term of the lease. 3 . ) The SAUBEL ESTATE and ROBERT SAUBEL reserve the right to assign this obligation to any collection agent which will undertake the responsibility to collect the rents as provided for in the residential lot leases . The Bureau of Indian Affairs by approval -2- r 1 of this agreement hereby consents to act as such disbursing agent if it becomes the collecting agent for such rentals pursuant to the terms of the leases . 4. ) The CITY hereby agrees to maintain such landscape easement during the term of said leases . 5 . ) The SAUBEL ESTATE and ROBERT SAUBEL as lessors under said business leases hereby agree that in the event LBC does not complete the subdivision and development of all of the lots contemplated herein, and if as a result thereof said leases are terminated, then and in that event, the obligation set forth herein to add the sum of $4 . 00 per lot per month to the rental obligation will be imposed upon the subsequent lessee of the property within such leases which may remain undeveloped by LBC. 6 . ) Nothing contained herein shall be interpreted to obligate the SAUBEL ESTATE, ROBERT SAUBEL, THE BUREAU OF INDIAN AFFAIRS, or LBC to pay for or maintain such landscape easement unless and until the lessors or their collecting agent receives the $4�. 00 per month per lot payments described above. 7 . ) This agreement shall become effective upon written approval by the Bureau of Indian Affairs . DATED: February �_, 1973 . LBC ENTERPRISES, a partnership By LBC, C. i%CJQ°/Ja F Byr' o- (L wrence A. La_ha, , President By.'._PHZ?tiIB"CRYSTAL INVESTMENTS, INC. r� Philip Crystal, President i DATED: February i` "'' , 1973 . ESTATE OF VERA JOY SAUBEL By BUREAU OF INDIAN AFFAIRS By A. S . McDermott, Director Palm Springs Office, Pursuant to DATED: February ;'_,` , 1973 25 CPR 131.2 (3) � `yam Robert S. Saubel -3- DATED: February , 1973 . CITY OF PALM SPRINGS, CALIFORNIA By City Manager ATTEST: F._D. ALESHIRE, CITY CLERK. � -D65tty City Clerk APPROVED AS TO FORM: CITY ATY RNEY APPROVED : R. S . McDermott Director, Palm[Spri1 .� $gtrice {�L91':pUfl(;i i;4� '±�iti,'1 i"1.6't3'hj'I1 3.= E"-Q) ". Dated : n:i- �cati �m 3 -4- STATE OF CALIFORNIA ) ss� COUNTY OF RIVERSIDE ) On February 6, 1973, before me, the undersigned Notary Public in and for said County and State, personally appeared L AWRENCE An LAPiIAM, known to me to be the President of L.B, C. , INC. , the corporation that executed the within instru- ment on behalf of said corporation, said corporation being known to me to be one of the partners of L n B n C. ENTERPRISES, the partnership that executed the same as such partnership, WIXN SS my hand a,nd offl,o al seal, Notary Public in and f®=,said Y County and State .nnnnn, , ��.............., RlJ CDUNT MY COM fi1SSION ECPiRES JUKE 27, 1976 STATE OF CALIFORNIA ) ssa COUNTY OF RIVERSIDE ) On February 6, 1973, before me, the undersigned Notary Public in and for said County and State, personally appeared PHILIP CRYSTAL, known to me to be the President of PHILIP CRYSTAL INVESTMENTS, INC. , the corporation that executed d-te within instrument on behalf of said corporation, said corporation being known to me to be one of the partners of L.B. C. ENTERPRISES, the partnership that executed the within instrument and acknowledged to me that such corporation executed the same as such partnership, iCll l l l II ill nIIn Irvin V�EIT I ASS i-ny ) an(�nqn o ' I " '-seal, � fZ, '4--� Notary Public in and ford \ Rla_f ILTE COUNTY .......nnnnnn,n,n „.n.,n„ County and State MY GOiMMl6SION EXPIRES JUKE 27, 1976 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss, On February `'` 1973, before me the undersi_ :ned Notary Public in Y �' � a g Y and for said County and State, personally appeared RICHARD McDERMOTT, known to me to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same. WITNESS my ,hand and offtcsal seal, ��� � - r Notary Public in and for said F2 .�, __ County and State L _, ., STATE OF CALIFORNIA ss V COUNTY OF On February fu"ry 1973, before me, the undersigned Notary Public in and for said County and State, personally appeared ROBERT S. SAUBEL, known to me to be the person whose name is subscribed to the within instrument; and acknowledged that he executed the same. WITNESS my hand and official seal, i �Zn. v` ��. ..M"Cs✓w....r^-7,nf' ( ,.y \ „�,+,_': a :L2:,.�,J../ LOV� L G, wol av F. c Notary Public in and for said I, are Xi L u N County and (State „Yi �,' my Commis ion Cupirec I_ -973 —�— I LESSOR: VERA JOY SAUBEL LEASE NO. CONT. NO. 3 LESSEE: LBC ENTERPRISES , a partnership ALLOT. NO. PS -28"-C 4 5 TABLE OF CONTENTS 6 Article Title Page 7 1. LAND DESCRIPTION 1 8 2. DEFINITIONS 1 9 3. TERM 2 10 4 . PURPOSE OF THIS LEASE 2 11 5. RENTALS 2 12 G . PAYMENT OF RENTS 3' 13 7. INDEMNIFICATION 3 N 0 uai 3m 14 8. PUBLIC LIABILITY INSURANCE 4 0 ?: e 15 9 . FIRE AND DAMAGE INSURANCE 4 a < 0 16 10 . PLANS AND DESIGNS 6 F w 1 U A O W0 = � 17 11. IMPROVEMENTS 6 p Z N �Fy 18 12. CONSTRUCTION, MAINTENANCE, REPAIR ALTERATION 7 oa 19 13. NON-RESPONSIBILITY NOTICES 7 20 21 14 . RENTAL BOND 8 ... 15. PERFORMANCE BOND 9 22 16 . COMPANIES BONDING AND INSURING 10 23 3.7. SUBLEASE, ASSIGNMENT, TRANSFER 11 24 18. STATUS OF SUBLEASES " 12 25 26 19. AGREEMENTS FOR UTILITY LINES 12 20 . RIGHTS OF WAY FOR STREETS AND UTILITY 27 RIGHTS 12 28 21. ENCUMBRANCE 12 29 22 . LIENS, TAXES, ASSESSMENTS, UTILITY 30 LINES 14 31 23. LESSOR' S PAYING CLAIMS , 15 32 24 . UNLAWFUL USE 15 • r • IiI{ i. I I 1 25 . EMINENT DOMAIN 15 r 2 26 . ARBITRATION 16 r 3 27. DEFAULT 16 4 28. ATTORNEY' S FEES 19 �f 5 29 . HOLDING OVER 19 6 30 . NO PARTNERSHIP; OPERATION OF BUSINESS 19 7 31. TERMINATION OF FEDERAL TRUST20 I, 8 32. LESSEE' S OBLIGATIONS ! 20 9 33. PAYMENTS AND NOTICES . 20 10 34. INSPECTION 20 11 35 . DELIVERY OF PREMISES 21 12 36 . LEASE BINDING 21 i. 13 37. INTEREST OF MEMBER IN CONGRESS 21 N i 3 14 38. VALIDITY 21 ajp 15 39 . LESSOR' S DETERMINATIONS', CONSENTS OR x �u` O APPROVALS 21 NZQ 16 u 40 . TAX IMMUNITY 22 Nyi-' ui I!. W 0 17 © oiz 41. FORCE MAJEURE 22 f N 4 F a F 4f mf 18r- m 4 11 a 19 20 1 . 21 22 F 23 24 25 I i 26 27 28 29 k, 30 31 t, 32 ' Ii ^ IIL I 1 UNITED STATES 2 DEPARTMENT OF THE INTERIOR Bureau of Indian Affairs 3 PALM SPRINGS OFFICE 587 SO. PALM CANYON OR, LEASE NO. 5 1 4 PALM SPRINGS, CALIF. 92262CONTT. NO. 7S,jL' ih�Zo - ALLOT . NO. 5 6 BUSINESS LEASE 7 THIS LEASE, in sextuplet', is made and entered into 8 this /V day of a;jo4� , 1972 , by and be- 9 tween VERA JOY SAUBEL hereinafter called the 10 "Lessor" , whose address is ` 11 and LBC ENTERPRISES, a partnership , hereinafter 12 called the "Lessee" , whose address is 6/2 EH SF .Sv""V / l 13 Palm Springs , California, under the w 3m 14 provisions of the Act of August 9 , 1955 , 69 Stat. 539 , as W Q J Z , Uo 15 amended, 25 U.S.C. 415 and as supplemented by Part 131 - Leasing 4 " J 16 and Permitting, of the Code of Federal Regulations , Title 25 - no , o 17 ° = = Indians , and any amendments thereto relative to Business Leases on restricted Indian lands , all of which by reference are made a 19 a part hereof. 20 1. LAND DESCRIPTION 21 1 For and in consideration of the rents and agreements 22 hereinafter set out, the Lessor hereby leases to the Lessee the 23 following described premises: , 24 The south ,one half of the southwest one quarter 25 of the Southwest one quarter of Section 12 , Township 4 South, Range 4 East, San Bernardino Base & 26 Meridian, being a portion of, Agua Caliente (Palm Springs) Allottee No, 28, Vera Joy 27 Saubel. 28 All of the above land being located in River- side County, State of California, subject to 29 any prior, valid, existing rights of way, con- taining 20 acres . 30 2 . DEFINITIONS 31 A. "Secretary" means the ''Secretary of the Interior 32 or his authorized representative. , Page One I B. "Approved encumbrance" herein shall mean an 2 enumbrance approved by the Secretary. "Encumbrancer" herein 3 shall mean the owner and holder of an approved encumbrance . 4 3. TERM 5 The term of this lease shall commence on the day 6 that this lease is approved by the Secretary and shall ter- , 7 urinate at such time as all parcels have been assigned pursuant 8 to Article 17 hereof; provided, however,' that in no event shall 9 this lease extend for a term more than sixty-five (6) years 10 beginning on the date that this lease is, approved. , 11 4 . PURPOSE OF THE LEASE 12 Lessee shall use the leased premises for the following 13 purpose: Single family residences . Lessee covenants and agrees N 14 that within one year from the date upon which this lease is Qo 15 approved, it shall construct at least twelve (12) single family X 4u0 -- rw5 1G residences , and Lessee further covenants . and agrees that wC = 0 17 mogz within four (4) additional years thereafter, it shall construct N 4� h o qJ 18 at least thirty-Teight ( 8) additional single family residences . a 19 5 . RENTALS 20 A. The Lessee, in consideration of the foregoing agrees 21 to pay in lawful money of the United States , to the Bureau of 22 Indian Affairs a rental of. $24,000 .00 per annum for each and every 23 year of this lease; provided, however, that Lessee shall receive 24 a credit for each residential lot assigned as hereinafter provided 25 in Article 17 hereof. 20 B. Said annual rental shall be paid quarterly in advance , 27 the first said pro-rated quarterly payment to be deposited with the 28 Bureau of Indian Affairs when this lease is submitted for approval, 29I and subsequent payments to be made to the Bureau of Indian Affairs 30 on or before each subsequent April 1, July 1, October 1 and 31 January 1. 32 Page Two i i 1 6 . PAYMENT OF RENTS 2 All rents shall be paid without prior notice or de- . i 3 mand. Past due rental shall bear interest at eight percent 4 (8%) per annum from the due date until paid, but this 5 provision shall not be construed to relieve the lessee from G his obligation to make timely rental payments . � 7 In the event of the death of , the owner during the I $ term of this lease and while the leased''premi.ses are in 9 trust or restricted status , all rentals remaining due or 10 payable to the decedent or to the decedent' s representative 11 under the provisions of the lease shall' be paid to the official • t 12 of the Bureau of Indian Affairs having jurisdiction over the j z 13 leased premises. . o j 14 j While the leased premises are in trust or restricted N I c� � sa f a 15 status the Secretary may, in his discretion, suspend the ^� W:E 16 direct rental payment provisions of 'this lease, in which event h w U N z W p0Q0 17 the rentals shall be paid to the official of the Bureau of I Nth °' w N "_ 18 Indian Affairs having jurisdiction over' the leased premises . f ` 19 7. INDENNIFICATION 20 Neither the lessor nor the United States , nor their 21 22 23 24 25 26 27 28 29 30 31 32 Page,'Three I officers , agents and employees shall be liable for any loss , 2 damage or injury of any kind whatsoever to the person or proper- 3 ty of the lessee or sublessees or any other person whomsoever, 4 caused by any use of -the leased promises , or by any defect in 5 any structure erected thereon, or arising from any accident, 6 fire or other casualty on said premises or from any other cause 7 whatsoever. Lessee hereby waives all claims against lessor and 8 the United States and agrees to hold lessor and the United 9 States free and harmless from liability for any loss , damage 10 or injury arising from the use of the premises by Lessee, 11 together with all costs and expenses in connection therewith. 12 8. PUBLIC LIABILITY INSURANCE 13 At all times during the term of this lease, Lessee N c a � 14 shall carry a public liability insurance policy in amounts W m 15 not less than ONE HUNDRED THOUSAND ($100 ,000 .00) DOLLARS/THREE r U O CUNfQ 16 HUNDRED THOUSAND ($300 , 000 .00) DOLLARS for personal injury and w i u u rc ; u 17 FIFTY THOUSAND ($50 ,000 .00) DOLLARS for property damage, said [000z N [ It h lg policy to be written jointly to protect lessee and lessor. Evi- Y J a 19 dance, acceptable to the Secretary, of such coverage shall be 20 furnished the Secretary. 21 I 9 . FIRE AND DAMAGE INSURANCE 22 Lessee shall, from the date, of approval of this lease, 23 carry fire insurance with extended coverage endorsements , to 24 include vandalism, jointly in the names of the lessee and lessor 25 covering the full insurable value of all improvements on the 26 leased premises . Evidence, acceptable to the Secretary, of 27 such coverage shall be furnished the Secretary. 28 Lessee shall pay all premiums and other charges for 29 such insurance and shall deposit with, the Secretary the receipt 30 for such premium or other charge as paid, or satisfactory evi- 31 dence thereof. In the event of damage to any improvement on the 32 leased premises , the lessee shall reconstruct the improvement Page Four 1 in compliance with applicable laws and building regulations and 2 in accordance with plans to be approved pursuant to Article 10 3 "Plans and Designs ", hereof. Such reconstruction shall commence within one (l.) year a.fkor the damac7e occurs <�nd shall. be pur- 5 sued diligently. Insurance proceeds" shall be deposited in es- 6 crow with an institution approved by' the Secretary. The lessee 7 shall also deposit in said escrow all additional funds required 8 to reconstruct the damaged improvement. Escrow instructions 9 shall include provisions that all funds so deposited shall be 10 used to reconstruct the damaged improvements , and funds shall 11 be disbursed during the progress of reconstruction on proper 12 architect's , engineer' s or contractor' s certificates . 13 If lessee has not defaulted under this lease, all N N 14 money in escrow after reconstruction has been completed shall W 3 m (9 z < be paid to lessee. If a default, has taken place, said money W , , - 15 , 05 0 shall remain in escrow as security for performance by lessee � :E 16 F w w = 17 until said default is corrected, after which funds remaining m o 'o z F Z - < " N 18 shall be paid to Lessee. If Lessee does not correct the default, m Y � a 19 said funds shall be paid to the lessor. 20 An encumbrancer may be named as beneficiary under the 21 insurance mentioned herein, and in the event of loss or damage 22 to the buildings on the leased property while an approved encum- 23 brance remains unpaid, the proceeds of such insurance (but not 24. exceeding the amount of the 'approved encumbrance) shall be paid 25 to the encumbrancer. If such amount paid to the encumbrancer 26 is sufficient to repair the loss or damage with respect to which 27 it was paid, or if insufficient to repair the loss or damage, 28 and lessor and lessee shall within three (3) months after such 29 payment by the insurer to the encumbrancer deposit with the 30 encumbrancer enough money to completely repair the loss or 31 damage, when added to the amount paid by the insurer to the 32 encumbrancer, the encumbrancer shall, upon written order of Page Five I lessor and lessee, pay such monies for such repair, and it 2 shall not be deemed a payment or credit on the encumbrance . 3 However, if prior to the expiration of such three (3) month 4 period the lessor and lessee shall not so deposit money with 5 the encumbrancer, the said sum so paid by the insurer to the G encumbrancer shall be applied and credited upon the approved 7 encumbrance. 8 10 . PLANS AND DESIGNS 9 Within 180 days after the approval of this lease, the 10 lessee shall submit to the Secretary for approval a general 11 plan and architect's design for the complete development of 12 the entire leased premises . Before beginning any construction 13 whatsoever on the leased premises, the lessee shall submit to N a0 14 the Secretary comprehensive plans and specifications for the ❑1 $ m i ws = z 15 improvements then proposed; the Secretary shall approve- them a c � U � 16 if they conform to the general development plan, but shall not N � Q 17 assume any responsibility whatever for detailed design of c o , z 18 structure or structures or violation of any state, county or w m � N � . a 19 city law or ordinance. The Secretary shall either approve or 20 state his reasons for disapproval of. plans and specifications 21 within thirty (30) days after receipt thereof from lessee . 22 No change will be made in plans or specifications after ap- 23 proval without the consent of the Secretary. 24 11. IMPROVEMENTS 25 All buildings and improvements , excluding removable 26 personal proeprty and trade fixtures ," on the leased property 27 shall remain on said property after the termination of this 28 lease and shall thereupon become the property of the lessor. 29 The term "removable personal property" as used in this Article 30 shall not include property which normally would be attached or 31 affixed to the buildings , improvements or land in such a way 32 that it would become a part of the realty, regardless of whether Page Six 1 such property is in fact so placed in, or on or affixed to 2 the buildings , improvements or land in such a way as to legally 3 retain the characteristics of personal property. 4 Lessee expressly waives all provisions of state and 5 local law pertaining to improvements affixed to the land by any 6 person acting in good faith and erroneously believing, because 7 of a mistake either of law or fact,, that he has a right to do $ so, and also providing for removal of, such improvements . Any 9 disputes arising under this Article which cannot be resolved by 10 the parties , shall be arbitrated ,pursuant to Article -74 hereof. 11 12. CONSTRUCTION, MAINTENANCE, REPAIR, ALTERATION 12 All improvements placed on the leased premises shall 13 be constructed in a good and workmanlike manner and in compli- 2 N 14 ante with applicable laws and building codes . All parts of w 3m w4 ' Z 15 buildings exposed to perimeter properties shall present a J j 6 " � � 4 16 pleasant appearance and all service areas shall be screened d 17 from public view. The lessee shall have the right at any m o 'az x - C w <NN 18 time during the term of this lease to make limited alterations , m Y j a 19 additions or repairs to any improvement on the premises in an 20 amount not to exceed $10 ,000 . 00 . Removal or demolition of any 21 improvements or alterations , additions or repairs to any im- 22 provement in excess of the above amount shall not be made 28 without the prior written consent of the lessor and the Secre- 24, tary. The lessee shall, at •all times during the term of this 25 lease and at the lessee ' s sole cost and expense, maintain the 26 premises and all improvements thereon in good order and repair 27 and in a neat, sanitary and attractive condition and in compli- 28 ante with applicable law, ordinance,, ,,or regulation . 29 13. NON-RESPONSIBILITY NOTICES 30 Prior to the commencement or construction of each im- 31 provement on the leased property, or any repair or alteration 32 thereto, the lessee shall give the Secretary ten (10) days Page Seven I advance notice in writing of intention to begin said activity, 2 in order that non-responsibility notices may be posted and 3 recorded as provided by state and local laws . Lessor hereby 4 authorizes the Secretary to post said notices on lesson' s, be- y half. Nothing contained herein shall"be construed as a waiver 6 of immunity of trust or restricted property from mechanics ' 7 or materialmen' s liens nor obligate the Secretary or lessor to 8 post non-responsibility notices while the leased premises are 9 in a trust or restricted status . 10 14. RENTAL BOND 11 Within 150 days from the date of approval of this 12 lease by the Secretary, the lessee agrees to post a bond 13 satisfactory to the Secretary in a penal sum of not less than N C ¢ ry 14 the first year's minimum rent, which bond shall be deposited W jm S < way 15 with the Secretary. The said bond shall be maintained at all w � Qo N :i 16 times in an amount not less than the sum of the minimum rental F w f U mo � z 17 payments to become due and payable during the ensuing twelve m <� N 13 (12) calendar months of the lease, unless and until the require- � m i Y J a 19 men-, for such bond is waived by the Secretary. Should waiver of 20 -rent bond be granted, the Secretary may require the lessee to _ 21 furnish ,bond at a later date and lessee hereby agrees to comply 22 with said request. Lessee may furnish, a corporate surety bond, : I 23 or in lieu thereof, may deposit with the Secretary, cash or k f 24 negotiable United States Treasury Bonds or other negotiable j 25 Treasury obligations in the appropriate amount, together with 26 power of attorney, empowering the Secretary, in the event of I i 27 lessee 's default in any of the rent provisions of this lease , 28 to pay over any such cash, or to dispose of any such bonds and t 29 nay over the proceeds derived therefrom, to or for the benefit of the lessor, subject to lessee's.,0 j privilege of curing said f 31 default as hereinafter provided. Any.' 4ther type of security 4 32 which may be offered by lessee to ',sati'sfy the requirements of Page Eight , } 5 [I[' A 1 this Article will be given reasonable consideration by the E: 2 Secretary, but it is agreed that acceptance of bond in lieu z 3 of those described above shall be at the sole discretion of: the 4 Secretary. e 5 It is agreed that bond required by this provision will 6 guarantee payment of rent only and that corporate surety bond 7 shall be in continuous form and may be subject to the provision G 8 that the surety may terminate said bond after giving forty-five f 9 (45) days written notice to the Secretary. If U.S . Treasury 10 Bonds are provided, lessee agrees to make up any deficiency in 11 the value deposited that might occur due to a decrease in the 12 value of the bonds . Interest on said bond shall be paid to 13 lessee. N 4 6 N 14 15 . PERFORMANCE BOND K W 3 � 045 15 Before beginning construction of each improvement, N0 15 lessee agrees to provide security to guarantee completion of the F 'w i u W LW 17 improvements and payment in full of claims of all persons for alooz , F N <rm 18 work performed on or materials furnished for construction. W � f J A 19 Lessee may provide said security by either: p a 20 A. Posting a corporate surety bond in an amount 21 equal 'to the cost of each building or other improvement, said 22 bond to be deposited with the Secretary and to remain in effect 23 until the improvement is satisfactorily completed. Said bond — -- 4 24 shall be conditioned upon the faithful performance of lessee, f 25 and give all claimants the right of action to recover upon 26 said bond in any suit brought to foreclose mechanics ' or materi- ¢ 27 almen' s liens against the property; or V 28 B. Depositing in escrow with an institution 29 acceptable to the Secretary, negotiable United States Treasury 30 Bonds or cash, in an amount sufficient, to pay the entire cost s 31 of construction of each building or other improvement then to f i 32 be erected on the premises . The escrow instructions shall ? Page Nine I include provisions for disbursement in installments upon certi- 2 fication of lessee 's architect as construction progresses . The 3 lessor and secretary shall have access to all information rela- 4 tive to the disbursement of funds through said escrow. The 5 escrow instructions shall also provide': that not less than ' r 6 fifteen percent (15%) of such funds shall be withheld by the 7 escrow holder until the period fixed by law for the filing of al- 8 mechanics ' or materialmen' s liens on such improvement shall have 9 expired or until an acceptable title company issues a title 10 insurance policy which in substance insures the lessor and Secre 11 tary against any loss they shall sustain by reason of any 12 statutory liens for labor or material arising out of any work 13 or improvement described in said escrow instructions ; that if N hi u 3 14 mechanics ' or materialmen' s liens are filed, the funds so wg 15 withheld shall then be used to discharge such liens ; and that if Y F U O � Nsa 16 no such liens are filed within the statutory period for filing, � ua , 0 17 the withheld funds shall be then disbursed to the lessee. If G o , z 4, N 18 U.S. Treasury Bonds are provided, lessee agrees to makeup any a 19 deficiency in the value deposited which might occur due to a 20 decrease in the value of the bonds . Interest on said bonds shall 21 be paid to the lessee; or 22 C. Entering into a building loan agreement with 23 a financial institution, which building loan agreement and the 24 amount of the equity of the lessee in,,the improvements upon 25 effecting the loan, shall be subject to the approval of the 26 Secretary. 27 16 . COMPANIES BONDING AND INSURING 28 All corporate surety bonds provided by lessee in 29 compliance with this lease shall be furnished by companies 30 holding certificates of authority, from the Secretary of the 31 Treasury as acceptable sureties on Federal bonds . Insurance 32 policies shall be furnished and maintained by such responsible Page Ten I companies as are rated A plus-AAA or better in the current 2 edition of Best' s Insurance Guide. 3 17. SUBLEASE, ASSIGNMENT, TRANSFER 4 A. The lessee shall not, unless otherwise expressly 5 authorized herein, sublease, assign or transfer any right to r 6 or interest in this lease or any of the improvements on the 7 leased premises , without the written approval of the Secretary $ and sureties . No such sublease, assignment or transfer shall 9 be valid or binding without said approval, and then only upon 10 the condition that sublessee, assignee or transferee has agreed -- 11 in writing to be bound by the terms of this ,lease . Any such con- 12 tract made, except as aforesaid, shall be deemed a breach of 13 this lease. The Secretary shall either approve or state his i 14 reasons for disapproval of the sublease, assignment or transfer W 3m EaQ 15 within thirty (30) days after the sublease, assignment or trans- 0 r U � 4 u NwwU 16 fer is submitted for approval; provided, however, that no such Qor3 17 approval shall be required for the assignment of a portion of ry N {H N 3 18 this lease to the assignee of an improved residential lot. . a 19 B. At such time as lessee submits its plan and design 20 as provided in Article 10 hereof, it shall also submit a schedule 21 of annual rents for each residential lot for approval by the Secre u 22 tary. Said schedule shall provide for a ' total annual rental for 23 all lots of not less than $29,960 . 00 . The Secretary shall either 24 approve or state his reasons for disapproval of said schedule 25 within thirty (30) days after it is submitted for approval. 26 Lessee shall also submit for approval assignment of lease forms 27 for use in assigning residential lots . Copies of each sublease, 28 assignment or transfer thereof shall� be furnished the Secretar y. . 29 30 31 32 ///// Page Eleven . i f f 1 18. STATUS OF SUBLEASES — y f 2 Termination of this ler.;Q , bj c41:1-0011"tion or othf.., • 3 3 wise, shall not serve to cancel WP1'0 11, :ae:l,lnerann nni.'f s r :: I� 4 tenancies , but shall oae:ate ;as an assilinr-nt to 5 and all such subleases and/or subtenancies . I 6 19 . AGREEMENTS FOR UTILITY FACILITIES ` 3 i;c'sii44i ' lydii i1�11'c ���'c -`A''t ,L6 (,7 1 `cz 44 L, ', & wiL-h public utility companies and the 'State of California or 9 any of its political subdivisions , to provide utility services , 10 including gas , water, electricity, telephone , television and 11 sewer facilities, necessary to the full enjoyment of the 12 leased premises and the development thereof in accordance with 13 the provisions of this lease, which agreement shall be binding N w � 14 upon any sublessee or other occupant of the leased premises; WS ; r 15 provided, that no agreement shall cover land not included in Y VO 16 this lease. Upon entering into such agreement or agreements , to — n W ¢ r U moot 17 the lessee shall furnish to the Secretary executed copies w there- U) 18 of together with a plat or diagram showing the true location of m Y J a 19 the utility lines to be constructed in accordance therewith. 20 20 . RIGHTS OF WAY FOR STREETS AND UTILITY FACILITIES 21 Lessor hereby consents to the granting of rights of 22 way for streets and utility facilities necessary to the full 23 enjoyment of the leased premises and development thereof. Such 24 rights of way are to be granted by the Secretary in accordance 25 with the approved general development plan and pursuant to the 26 Act of February 5 , 1948, 62 Stat., 17, and any amendments thereto, 27 as supplemented by regulations of the Secretary applicable 28 thereto. 29 21. ENCUMBRANCE 30 This . lease, or any right to or interest in, or any 31 32 Page Twelve 1 of the improvements on the leased premises , may be encumbered 2 with the written approval of the Secretary. No such encumbrance 3 shall be valid without said approval. 4 An encumbrance must be confined to the leasehold in- 5 terest of lessee or the subleasehold interest of a sublessee - 6 and shall not jeopardize in any way the lessor's interest in 7 the land. Lessee agrees to furnish as requested any financial 8 statements or analyses pertinent to the encumbrance that the 9 Secretary may deem necessary to justify the amount, purpose 10 and terms of said encumbrance. 11 In the event of default by the lessee of the terms 12 of an approved encumbrance, the encumbrancer may exercise any 13 rights provided in such approved encumbrance, provided that > � 1q before any sale of the leasehold,, whether under power of sale or fY ¢ N , W 3 m wa = z 15 foreclosure, the encumbrancer shall give to the Secretary and J 0 X � <U � � � 16 lessor notice of the same character and duration as is required F w u we o 17 to be given to lessee by such encumbrance and/or the laws of mooz N F N 18 the State of California. d 19 If any sale under the approved encumbrance occurs , 20 whether by power of sale or foreclosure, ,the purchaser at such 21 sale shall succeed to all of the rights , title and interest 22 of the lessee in the leasehold estate covered by said approved 23 encumbrance. It is further agreed that, if the purchaser at 24 I such sale is the encumbrancer, the encumbrancer may sell and 25 assign the leasehold interest without any further consent, 26 provided that the assignee shall agree in writing to be bound 27 by all the terms and conditions of this lease. If the encum- 28i brancer is the purchaser, it shall be required to perform this 29 i lease only so long as it retains title thereto. if a sale 30 under the approved encumbrance occurs and the purchaser is a 31 party other than the encumbrancer, said purchaser, as successor 32 in interest to the lessee, shall be bound by all of the terms I Page Thirteen i 1 and conditions of this lease. 2 If notice of such sale shall be given and the defaults 3 or any of them on which such notice of sale is based shall then 4 ccnki_niie, shal,;l, haves thr ,r,:i,cd11�L l.a core-oou SnoSi detau]_Ls 5 at any time prior to the date of sale or foreclosure, and to 6 terminate such leasehold upon paying to the encumbrancer the 7 amount of principal and accrued interest which remain unpaid, 8 such amount hereafter called the balance of the encumbrance. 9 22. LIENS, TAXES, ASSESSMENTS, UTILITY CHARGES 10 Lessee shall not permit to , be enforced against the 11 leased premises , or any part hereof , ' any liens arising from 12 any work performed, materials furnished, or obligations in- 13 curred by lessee, and lessee shall discharge or post bond N m aN 14 against all such liens before any action is brought to enforce w 3 ILI 15 sa.,le. Lessee shall pay, when and as the same become due and ej 16 pay , able all taxes assessments licenses fees and other like yz � � w u 17 charges levied during the term of this lease upon or against the m ooz leased land, all interests therein and property thereon for whit pa 19 either the lessee or lessor may become liable. Upon written 20 request, the lessee shall furnish to the Secretary written 21 evidence, duly certified, that any and all taxes required to 22 be paid by lessee have been paid, satisfied, or otherwise dis- 23 charged. Lessee shall, have the right to contest any claim, 24 tax or assessment against the property by posting bond to pre- 25 vent enforcement of ,any lien resulting therefrom, and lessee 26 agrees to protect and hold harmless the lessor, the Secretary 27 and the leased premises and all interest therein and improve- 28 ments thereon from any and all claims , taxes , assessments , 29 and like charges and from any lien therefor or sale or other 30 proceedings to enforce payment thereof, and all costs in c6nnec- 31 tion therewith. Lessor shall execute and file any appropriate 32 documents with reference to real estate tax exemption of the land Page Fourteen I when requested by lessee. In addition to the rents , taxes 2 and other charges herein described, lessee shall pay all charges 3 for water, sewage , gas , electricity„ telephone and other utility 4 services supplied to said premises as they become due. 5 23 . LESSOR'S PAYING CLAIMS 6 Lessor shall have the option to pay any lien or charge 7 payable by lessee under this lease, or settle any action therefor, 8 if the lessee after written notice from lessor or secretary fail. 9 to pay or to post bond against enforcement . All costs and other 10 expenses incurred by lessor in so doing shall be paid to lessor 11 by lessee upon demand, with interest' at the rate .of ten percent 12 (100) per annum from date of payment. until repaid. Failure to 13 make such repayment on demand shall constitute a breach of the N U 14 covenants of this lease. � 4 N (D ? 15 24. UNLAWFUL USE x ¢U � The lessee agrees not to use or cause to be used any a y � � 16 NZ 17 part of the leased premises for any unlawful conduct or purpose. M O V Z U)<, 25. EMINENT DOMAIN ` 18 m W . 0. 19 If, at any time during the term of this lease, the 20 leased premises or any part thereof is taken or condemned under 21 the 1•aws of Eminent Domain, then and in every such case the . 22 leasehold estate and interest of •the „lessee in said premises 23 taken shall forthwith cease and terminate. All compensation 24 awarded by reason of the taking of the leased premises -shall be 25 awarded to the lessee and the lessor 'as their interests appear 26 at the time of such taking, unless an encumbrance of the leaae- 27 hold has been approved, in which case ' the compensation or award, 28 only insofar as it is awarded for damages to the improvements 29 on the leased property, to the extent of the unpaid balance of 30 any approved encumbrance, shall be paid to the encumbrancer. 31 As between lessor and lessee or sublessor and sublessee, as the 32 case may be, such amount shall be deemed paid to the lessee or Page Fifteen 1, . 1 sublessee and, if such amount exceeds the amount to which lessee 2 or sublessee is entitled under the other terms of this lease, 3 lessee or sublessee shall pay any such excess to lessor or sub- , , 4 lessor, as appropriate. 5 The rental thereafter payable hereunder for the re- 6 mainder of the term of this lease shall' be adjusted by agreement of the parties , subject to the approval of the Secretary. 7 P 4' 8 If after the condemnation continuation of this lease t' 9 is no longer feasible, the lease may beiterminated by agreement 10 of the parties , subject to the approval of the Secretary. 11 any disputes arising under this Article which cannot 12 be resolved by the 'parties shall be arbitrated pursuant to Arti- k a 13 cle 26 hereof. N rt RN 14 26 . ARBITRATION W 3 m � 3 < 15 Whenever the terms of this lease require that a dis- pute be settled by arbitration, an Arbitration Board shall be w0. = � 17 established, consisting of three members , one each to be selecte (A OOZ 18 by the lessor and the lessee, and such members to select the a 19 third member. The costs of such Arbitration Board shall be 20 shared equally by the lessee and the lessor. The Secretary 21 shall be expected to accept decisions reached by said Arbitra- 22 tion Board, but he shall not be bound by any decision which ✓ 23 might be in conflict.with the interests -of the Indians or the 24 United States . 25 27. DEFAULT 26 Time- is of the essence of this lease. Should lessee 27 default in any payment of monies or fail to post bond, as 28 required by the terms of this lease, and if such default shall 29 continue uncured for the period of thirty (30) days after written S 30 notice thereof by the Secretary to lessee, or should lessee 31 breach any other covenant of this lease, and if the breach of 4 32 such other covenant shall continue uncured for a period of Page Sixteen I sixty (60) days after written notice thereof by the Secretary 2 to lessee , then the Secretary may either: 3 A. Proceed by suit or otherwise to enforce collec- q tion or to enforce any other provision of this lease, or 5 B. Re-enter the premises and remove all persons 6 and property therefrom, excluding the persons and property 7 belonging to authorized sublessees , and either 8 • (1) Re-let the premises without terminating 9 this lease, as -the agent and for the account of lessee , but 10 without prejudice to the right to terminate the lease there- t 11 after, and without invalidating any right of lessor and the I 12 Secretary or any obligation of lessee hereunder. Terms and con- f 13 ditions of such re-letting shall be at the discretion of lessor € N C <'N 14 and the Secretary, who shall have the right to alter and repair wa3a 15 the premises as they deem advisable, and to re-let with or with- 4v J J C Y F U U 16 out any equipment or fixtures situated thereon. If a sufficient I U wO = " 17 sum is not thus realized to liquidate the total amount due, in- w o 'a z N a r a � 1g eluding attorneys fees and real estate commissions paid, lessee a 19 shall pay to lessor monthly, when due,, any deficiency, and lesso 20 and the Secretary may sue thereafter as each monthly deficiency 21 shall arise. 22 (2) Terminate this lease at any time even though 23 lessor and the Secretary have exercised rights as outlined in (1 24 above. h 25 Any action taken or suffered by Lessee as a debtor 26 under any insolvency or bankruptcy act shall constitute a 27 breach of this lease. In such event the lessor and the jII 28 Secretary shall have the options set forth in sub-Articles A and I 29 B above. t 30 At least forty-five (45) days prior to termination of 31 this lease for default by the lessee,'' the lessor or the Secre- j 32 tary shall give notice in writing to the encumbrancer expressing Page Seventeen I lessor' s intention to terminate and describing said default or 2 breach. When the default or breach can. be cured by the payment 3 or expenditure of money, this lease wi11 not be terminated if 4 within forty-five (45) days after 'receipt fo such written notice 5 to terminate the encumbrancer shall cure the default or breach. 6 Whenever the encumbrancer exercises any right on a default situa 7 tion, the encumbrancer shall be bound to comply with all of the 8 obligations and conditions of the lease. When the default or 9 breach cannot be cured by the payment or expenditure of money, 10 this lease will not be terminated if the encumbrancer shall 11 within the said forty-five (45) day period initiate, and there- 12 after diligently pursue to completion, proceedings for fore- 13 closure and sale under and pursuant to •the terms of the encum- brance.a � 14 brance. However, during and until the completion of such fore- w 3 � gp 15 closure proceedings , the encumbrancer shall pay the rents due Y U o � NU4 16 and payable by the lessee under this lease; shall maintain U N0 17 all insurance as required by the lease; shall pay all taxes due LaC U1 Q 0 p Z 18 and unpaid on the taxable property covered by the lease; shall W � O m i qa 19 begin the cure of any other default or, breach not curable by 20 payment or expenditure of money which can reasonably be under- 21 taken -by the encumbrancer; and shall diligently prosecute the 22 said cure of such default or breach until the leasehold is 23 either sold upon foreclosure pursuant to the terms of the en- 24 cumbrance or released or reconveyed thereunder. 25 In case a default or breach on the part of the lessee 26 occurs preceding, during, or due to the bankruptcy, receiver- 27 ship, or insolvency of the lessee and the encumbrancer, prior 28 to the receipt of the notice of intent to terminate described 29 herein or within forty-five (45) days after the receipt thereof, 30 shall have filed in the court having jurisdiction over such 31 bankruptcy, receivership or insolvency, a petition for permis- 32 sion to foreclose, the filing of such petition shall be deemed ' Page• Eighteen 1 to be the beginning of foreclosure proceedings .for the purposes 2 of this paragraph. The bankruptcy , receivership or insolvency 3 of lessee shall be considered a breach which cannot reasonably 4 be cured by encumbrancer and one not 'curable by the payment of 5 money. 6 No waiver of a breach of any of the covenants of this 7 lease shall be construed to be a waiver of any succeeding breach 3 of the same or any other covenant. 9 28. ATTORNEY' S FEES 10 If action be brought by lessor or lessee in unlawful 11 detainer for rent or any other sums of money due under this 12 lease, or to enforce performance of any of the covenants and 13 conditions of this lease, the losing party shall pay reasonable C < N 14 attorney's fees of the prevailing party, to be fixed by the ti4 ; Z 15 Court as a part of the costs in any such action. J j ll x � Rj 16 29 . HOLDING OVER a F }iU wp - � 17 Holding over by the lessee ,after the termination or mooz u� a < N 13 expiration of this lease shall not constitute a renewal or ex- w m a � a 19 tension thereof or give the lessee any rights hereunder or in 20 or to the leased premises. 21 Lessee agrees to remove all property removable under 22 the terms of this lease prior to ,the'Itermination or expiration 23 of this lease. 24 30 . NO PARTNERSHIP; OPERATION OF BUSINESS II 25 Regardless of the fact that terms of rental are in 26 part on a percentage basis , lessee and lessor are not in 27 partnership. 28 Lessee agrees that, at all times during the term 29 of this lease, it will diligently attempt to keep the leased 30 premises and all parts thereof actively used. 31 All businesses on the leased premises shall be con- 32 ducted during the regular and customary hours of such businesses Page Nineteen 1 and on all business days in good faith, so that lessor will at 2 all times receive the maximum income'''under the percentage rental 3 provisions of this lease. 4 31. TERMINATION OF FEDERAL TRUST 5 Nothing contained in this lease shall operate to de- b lay or prevent a termination of Federal trust responsibilities 7 with respect to the alnd by the issuance of a fee patent or 8 otherwise during the term of the lease; however, such terminatio 9 shall not serve to abrogate the lease. The owners of the land 10 and the lessee and his surety or 'sureties and encumbrancer or 11 encumbrancers shall be notified of any such change in the 12 status of the land. 13 32. LESSEE' S OBLIGATIONS N ° 14 While the leased premises 'are held in trust by the a '< � o ¢ - = United States or subject to a restriction against alienation 15 J < C � 4U � imposed b the United States all of the lessee 's obligations � NZR 16 y g w � = 17 under this lease, and the obligations. of lessee's sureties , are m o Q z is a 18 to the United States as well as to the owner of the land. w N N b Y J d 19 33 . PAYMENTS AND NOTICES 20 All notices , payments and demands shall be sent to 21 the parties hereto at the addresses herein recited or to such 22 addresses as the parties may hereafter designate in writing. 23 Notices and demands shall be delivered in person or sent by 24 registered mail. Service of' any ,notice or demand shall be 25 deemed complete ten (10) days after mailing or on the date 26 actually received, whichever occurs first. Copies of all no- 27 tices and demands shall be sent -to the Secretary in' care of the 28 office of the Bureau of Indian Affairs hereinabove recited. 29 34. INSPECTION 30 j The Secretary and the lessor and their authorized 31 representatives shall have the right,' at any reasonable times 32 during the term of this lease, to enter upon the leased premises Page Twenty i . . 1 or any part thereof , to inspect the sameand all buildings 2' and other improvements erected and placed thereon . 3 35 . DELIVERY OF PREMISES At the termination or expiration of this lease , 5 lessee will peaceably and without legal process deliver up 6 the possession of the leased premises , in good condition, usual 7 wear and Acts of God excepted. 8 36 . LEASE BINDING 9 This lease the the "covenatns ; conditions and restric- 10 tions hereof shall extend to and be,,binding upon the successors , lI heirs , assigns , executors and administrators of the parties 12 hereto. 13 37. INTEREST OF MEMBER OF CONGRESS N a < N 14 No member of, or delegate to, Congress , or Resident W � 0 o ' = ` Commissioner shall be admitted to any share or part of Wa ' Z 15 J < O X4 ° this contract or to any benefit that may arise herefrom, but 16 r w u wM � 0 this provision shall not be construed to extend to this con- mooz 17 w < C 1 � � 18 tract if made with a corporation or company for its general m m r Qa 19 benefit. a 20 38. VALIDITY 21 This lease, and any modification of or amendment to, 22 shall not be valid or binding upon 'Ieither party hereto until 23 approved by the Secretary. i 24 39 . LESSOR' S DETERMINATIONS, CONSENTS OR APPROVALS 25 Whenever in this lease it,, is provided that the lessor j 26 may exercise any rights or discretions or make any determina- 27 tions , consents or approvals , except changes in guaranteed 28 minimum rentals , percentage rentals,, participation of the 29 parties in rentals , term, or surrender of the lease, and the 30 leased land is in multiple ownership, the action of those 31 lessors holding the majority of interest in the ownership i j 32 of the leased premises shall constitute the action of all the Page Twenty-One I lessors for the purpose of this lease and any extention thereof. 2 40 . TAX IMMUNITY 3 Nothing contained in this lease shall be deemed to 4 constitute a waiver of applicable , laws, providing tax immunity 5 to trust or restricted Indian property or any interest therein 6 or income therefrom. 7 41 . FORCE MAJEURE 8 Whenever under this instrument a time is stated within 9 which or by which original construction, repairs or reconstruc- 10 tion of said improvements shall be completed, and if during 11 such period a general or sympathetic strike or lockout, war or ' 12 rebellion or some other event occurs beyond lessee 's power. to 13 control, the period of delay so caused shall be added to the N , O w � 14 period allowed herein for the completion of such work. Any C <Uo U 15 questions of fact arising hereunder shall be arbitrated under v 4 J � . z � 16 Article 26 , "Arbitration", hereabove . Mo Z 17 Any disputes arising under this Article which cannot NaFN , o pj 18 be resolved by the parties , shall 'be arbitrated pursuant to a 19 Article 26 hereof. 20 IN 97ITNESS WHEREOF, the ,parties hereto have hereunto • I 21 set their hands . 22 Dated: Z22, 23 VERA JOY SAUBEL, "Lessor" 24 LBC QTERP S . a Partnership 25 "Less. - 2 6 By 27 And: i'/GG Gt ✓ / 28 29 30 I 31 32 Page Twenty-Two . I I 1 AFFIDAVIT OF LESSEE' r 2 STATE OF CALIFORNIA ) ss . 3 COUNTY OF 4 Ir _ Jn � �c_ ,�a r ( ,! Alij ) of Q andfi� r 5 of ' ct • ! Lessee, herein, being duly sworn, depose and say t at 6 C.' ;,, leasing the land herein for It own u e and benefit and not directly or i it y fo the bone- 7 fit of any other person or corporati 8 Signa4,ure of Less e 12 10 S gnature of Le s e / 11 Subscribed and sworn to before me, this LL day of 19� 12 Noary uiF�l cTi�_and for 13 _s 2t�, unto I ate. �,- RIVERSIDE COUNiY '< N 14 STATE OF CALIFORNNIA ) ' J✓' cnE,roRNla �/ ss. Ur,y Commis?:on Expires January W .¢i C 15 COUNTY OF� .c�.'•�J G;d ) i'.�,......w,.min.. unm• wnn....... ,IITii, na a Cb � � 4 16 On ! ���� , before me, the undersigned, a w ' ° No'-are* Public in nd or said State, personally appeared wp - � mo = z 17 �^ �' , known to me to be the resident , Faa an , i known to me to be th w 18 ,- 1 of t' corporationu'that executed the within instrument m v � and known to me to be the persons who executed the within instru a 19 ment on behalf of the corporationsstherein named, and acknowledge(l to me that such corporationcexecuted 'the within instrument pur- r a resolution of ajt�and of directors . 20 suant to its by-laws o: Cam, 21 WITNESS my 1h'a.I1n,,, nnn„ i. , d and..,lof-fi.cLalEKealt. • u 22 Notary Public__i�" r said County 'and State. 23 y Commission '.pl'� :.._•:•_,..,,,... .,l.-A D IT""'OF",,,T$SSOR 24 STATE OF CALIFORNIA ) 25 ) ss. COUNTY OF 26 p I, the undersigned, 27 Lessor of the within lease, hdreby certify that the contents , purport, and effort of the within lease are fully understood 28 by �,,n> , and that Q signed the lease of own free will. 29 30 Signatx&e <V Lessor Subscribed and sworn to before me this ,'lid ay of 31 3Z 0}}}9}}?}}}4♦}}h0}f00}O}}9 •�.. OFFICIAL SEAL �/ i r JUL h1AE MAR Notary Public in and for p ,�...�I•; I Nmory PO�IIC— Cn11mmIA.. I � FrIMCIPAL OFFICE IN O Count\1 and State . `•"" nIVEH;NUE COUNTY •i v My Commission Expires Mar. 9, 1976 4 Page Twenty-Three • 1 I STATE OF CALIFORNIA 1 ) ss . 2 COUNTY OF �k'2- „I ) 3 On , ( ! .Srll / ff / J.''-- before me, the under- 4 signed, a Notary Publ.i.r in �jnd for said State , personally appeared nti �� , `,. 5 known to me to be the person whose name _ i subscribed to the within instrument and acknowledged to me 6 executed the same. 7 WITNESS my hand and official seal. 04f.oPPPA♦PpPJJPP♦444PPPPP ' 8 J OFFICIAL SEAL J �.r ;.., . JULIA MAE MARCKS + Noonry P.M. — Cnlllomb p p 4 v�•F'✓ PNINCIPAL OFFICE IN o J • � RIV En51bE COUNTY P My Commission Expires Mar. 9, 1976 4 Notary Public in and for 10 ++•••++++.*+.+..+....•+++♦ said County and State. 11 12 UNITED STATES 13 DEPARTMENT OF THE INTERIOR N BUREAU OF INDIAN AFFAIRS 0 c < � 14 0 The within lease, consisting of page -,one through twenty-four 15 � F6o is hereby approved. ? 16 F- J I U r� s r . u 17 AREA DIRECTOR O O z 1 1972 13 Date : a 19 Pursuant to the authority delegated tyj 20 Secretarial Order No. 2508 (Arndt. 50, 27 F.R. 987) and 19 SIAM 3.1 (34 F.R. 637). 21 22 23 --- - 24 25 a 26 . 27 I 23 ` 29 a 80 31 Page Twenty-Four 32 1 1 UNITED STATES DEPARTMENT OF THE INTERIOR 2 BUREAU OF INDIAN AFFAIRS SACRANIENTO AREA OFFICE 3 4 APPROVAL OF LEASE 5 The within Lease No. PSL-156 in favor of LBC Enterprises, 6 a partnership, consisting of pages 1 through 24 is hereby approved 7 on the following conditions, which conditions, are accepted by i $ r 9 Lessee, as witness by signatures subscribed below: 10 Lessee hereby agrees that the option to terminate 11 provided for in Article 3, "TERM' , of this lease, shall 12 ' not be exercised until after the third year of the term 13 and shall not be exercised unless and until at lease. 14 thirty single family residences have been completed and 15 16 sold. 17 It is hereby agreed that in Article 4, "PURPOSE i8 OF THE LEASE", page 2, line 17, the words "two years" 19 are changed to "three years" . 20 Lessee further agrees that ingress and egress, 21 satisfactory to the Secretary, to that portion of the 22 premises which has not been developed, will be provided 23 24 prior to exercising the option to terminate. 2s ,;°r DATE: -- 26 AREA DIRECTOR 27 ACCEPTED: E Puruant to the authority delegated by C Secretarial Order No. 2503 (Amdt. 50. C 28 LBC ENTERPRISES , a partnership, 27 F.R. 937) and 10 B1.411 3.1 (34 F.R. 637)� 29 LESSEE. 44, 30 Bv' 31 BY .fir � .L.".G.a' . ✓«mot-+.�.... 32 • li l I 1 STATE OF CALIFORNIA ) ss . 2 COUNTY OF _ 3 On ✓ .n' �,,ti �l /.� f� / J � , _, before me , the under- 4 signed, a Notary Public in and for said State , personally appeared __ z/✓n2 (J X,/ I 5 known to me to be the' p rson whose name % subscribed to the within instrument and acknowledged to me 6 executed the same. WITNESS my hand and official 7 sell. 4909e_9P♦♦♦P4P444P9♦9P4♦9♦4 8 P " OFFICIAL SEAL 4 0 j JULIA MAE MARCKS P P ,w/.:A_� Notary Public —California 4 9 4 r PRINCIPAL OFFICE IN P Res M COUNTY 4 Notary Public in and for ♦ My Commission Expires fAar. 9, 1916 a 10 ••••"'°♦•♦.*♦.+.*•*•++o♦♦ said County and State. 11 12 UNITED STATES 13 DEPARTMENT OF THE INTERIOR BUREAU OF INDIAN AFFAIRS N O " 14 C 6 N LI � In 15 Te within lease, consisting of page -)one through twenty-four J � ° is hereby approved. i 16 m ; AREA DIRECTOR r 0 17 M 0 o z N MAY 1 197E w m O 18 Date: W , J ` 19 a Pursuant to the authority delegated by 20 4 Secretarial Order No. 2508 (Arndt. 50, ' • 27 F.R. 987) and 21 10 SIAM 3.1 (34 F.R. 637). i 22 —'— — 23 1 24 25 26 27 28 I � I 29 30 I 31 Page Twenty-Four 32 l I , • 'fUREAU OF INDIAN AFFAIRS • ` PALM SPRINGS OFFICE P. 0. BOX 2245 PALM SPRINGS, C.A. 02262 1 LESSOR: ROBERT STEVEN SAUBEL LEASE NO . PSL-156 2 CONT. NO. 3 LESSEE: LBC ENTERPRISES, a partnership ALLOT. NO . PS-27 4 5 TABLE OF CONTENTS 6 Article Title Page 7 1. LAND DESCRIPTION 1 8 2 . DEFINITIONS 1 9 3. TERM 2 10 4. PURPOSE OF THE LEASE 2 11 5 . RENTALS 2 12 6 . PAYMENT OF RENTS 3 13 7. INDEMNIFICATION 3 N 14 8 . PUBLIC LIABILITY INSURANCE 4 G = N w 3 � ILI4 15 I' 9 . FIRE AND DAMAGE INSURANCE 4 'e � 0 � 10. PLANS AND DESIGNS ya 16 6 m 1 U we - vi 17 Il. IMPROVEMENTS 6 m ooz 18 12 . CONSTRUCTION, MAINTENANCE , REPAIR, m ALTERATION 7 19 13. NON-RESPONSIBILITY NOTICES 7 20 14. RENTAL BOND 8 21 15 . PERFORMANCE BOND 9 22 16. COMPANIES BONDING AND INSURING 10 23 17. SUBLEASE , ASSIGNMENT, TRANSFER 10 24 18 . STATUS OF SUBLEASES 11 25 19 . AGREEMENTS FOR UTILITY FACILITIES 11 26 20 . RIGHTS OF WAY FOR STREETS AND 27 UTILITY FACILITIES 12 28 21. ENCUMBRANCE 12 29 22 . LIENS, TAXES, ASSESSMENTS , UTILITY CHARGES 13 30 23. LESSOR' S PAYING CLAIMS 14 31 24 . TTNTT ^.1'JFUL USE 15 32 1 2S . EMINENT DOMAIN 15 2 26 . ARBITRATION 15 3 27 . DEFAULT 16 4 28 . ATTORNEY' S FEES 18 5 29 . HOLDING OVER 19 6 30 . NO PARTNERSHIP; OPERATION OF BUSINESS 19 7 31 . TERMINATION OF FEDERAL TRUST 19 8 32 . LESSEE' S OBLIGATIONS 19 9 33. PAYMENTS AND NOTICES 20 10 34 . INSPECTION 20 11 35 . DELIVERY OF PREMISES 20 12 36 . LEASE BINDING 20 13 37. INTEREST OF MEMBER OF CONGRESS 20 m 14 38. VALIDITY 21 � 6 N W 3 m � ? ' m 15 39 . LESSOR'S DETERMINATIONS , CONSENTS u a LL OR APPROVALS 21 16 ~ U 40 . TAX IMMUNITY 21 mm 0 17 N `~ N 18 41. FORCE MAJEURE 21 m a � a 19 20 21 22 23 24 25 26 27 28 29 30 31 32 1 UNITED STATES 2 DEPARTMENT OF THE INTERIOR Bureau of Indian Affairs 3 LEASE NO. PSL-156 4 CONT. NO. ALLOT. NO. PS-27C 5 6 BUSINESS LEASE 7 THIS LEASE, in sextuplet, is made and entered into 8 this day of , 1972 , by and be- g tween ROBERT STEVEN SAUBE.L , hereinafter called the lO "Lessor", whose address is 924 N. Joyce , Rialto , California , 11 and LBC ENTERPRISES, a partnership hereinafter 12 called the "Lessee" , whose address is 612 E . Sunny Dunes Road, 13 Palm Springs , California, under the N La3m 14 provisions of the Act of August 9 , 1955, 69 Stat. 539 , as W43z 15 Yr � o amended, 25 U.S. C. 415 and as supplemented by Part 131 - Leasing Fw � u 16 and Permitting, of the Code of Federal Regulations , Title 25 w - 0 = � 17 moaz Indians , and any amendments thereto relative to Business Leases N G F N M .� 18 on restricted Indian lands , all of which by reference are made 19 a part hereof. 20 1 . LAND DESCRIPTION 21 For and in consideration of the rents and agreements 22 hereinafter set out, the Lessor hereby leases to the Lessee the 23 following described premises :, 24 The northwest quarter of the southeast quarter 25 of the southwest quarter and the south half of the southeast quarter of the southwest quarter 26 of Section 12 , Township 4 South, Range 4 East , San Bernardino Meridian, Riverside County , Calif. , 27 containing 30 .00 acres , more or less , being a portion of Agua Caliente (Palm Springs) Allotment 28 No. PS-27, ROBERT STEVEN SAUBEL. 29 30 2 . DEFINITIONS 31 A. "Secretary" means the Secretary of the Interior 32 or his authorized representative . Page One 1 B . "Approved encumbrance" herein shall mean an 2 encumbrance approved by the Secretary. "Encumbrancer" herein 3 shall mean the owner and holder of an approved encumbrance . 4 3. TERM 5 The term of this lease shall commence on the day that 6 this lease is approved by the Secretary and shall terminate at 7 such time as all parcels have been assigned pursuant to Article 8 17 hereof; provided, however. , that in no event shall this lease 9 extend for a term more than sixty-five y- (65) years beginning on th . 10 date that this lease is approved; provided, further, however, tha� 11 Lessee may terminate this lease after the second year of the term 12 by giving Lessor at least thirty (30) days ' written notice of its 13 intention to do so. N r " 14 1 w 3` � 4. PURPOSE OF THE LEASE C g a o 15 ,,y ' l Lessee shall use the leased premises for the following Y 4 U aUs I�� l FWs � 16 6rpose: Single family residences . Lessee covenants and agrees w � 0 17 © oxc `lJthat within two years from the date upon which this lease is ap- u~ d � m U m as 18 proved, it shall construct at least thirty single family resi- 19 dences , and Lessee further covenants and agrees that within three 20 additional years thereafter, it shall construct at least sixty 21 additional single family residences . 22 S . RENTALS 23 A. The Lessee, in " consideration of the foregoing 24 agrees to pay in lawful money of the United States , to the Bureau 25 of Indian Affairs , a rental of $24 ,000 . 00 per annum for each and 26 every year of this lease ; provided, however, that Lessee shall 27 receive a credit for each residential lot assigned as herein- 28 after provided in Article 17 hereof; provided, further, however, 29 that the first year ' s annual rental shall be one-half of the amourt 30 above specified. 31 B. Said annual rental shall be paid anuuaiiy in 32 advance , the first said payment to be deposited with the Bureau Pagc Two A of Indian Affairs when this lease is submitted for approval , 2 and subsequent payments to be made to the Bureau of Indian 3 Affairs on or before the anniversary of the effective date of 4 the lease . 5 6 A1.1 rents shall be paid without prior notice or de- 7 mand. Past due rental shall bear interest at eight percent 8 (8%) per annum from the due date until paid, but this 9 provision shall not be construed to relieve the lessee from 10 his obligation to make timely rental payments . 11 In the event of the death of the owner during the 12 term of this lease and while the leased premises are in N 13 trust or restricted status , all rentals remaining due or a w 32 14 payable to the decedent or to the decedent' s representative W G Z a rto 15 under the provisions of the lease shall be paid to the official X *� uLL .6 of the Bureau of Indian. Affairs having jurisdiction over the m o ' z 17 leased premises . F: 1 x C N G F N � j 18 While the leased premises are in trust or restricted ` 19 status , the Secretary may, in his discretion, suspend the 20 direct rental payment provisions of this lease, in which event 21 the rentals shall be paid to the official of the Bureau of 22 Indian Affairs havingjurisdiction over the leased j premises . 23 7. INDEMNIFICATION 24 Neither the lessor nor the United States , nor their 25 officers , agents and employees shall be liable for any loss , 26 damage or injury of any kind whatsoever to the person or proper- 27 ty of the lessee or sublessees or any other person whomsoever, 28 caused by any use of the leased premises , or by any defect in 29 any structure erected thereon , or arising .from any accident , 30 fire or other casualty on said premises or from any other cause 31 what ccvcr. Lcs�cc hereby waives all claims against lessor 32 Page Three 1 the United States and agrees to hold, lessor a.nd -the Un9,tec1 9 States free and harmless from liability for any loss , damage 3 or injury arising from the use of the premises by Lessee , 4 together with all costs and expenses in connection therewith . 5 S . PUBLIC LIABILITY INSURANCE 6 At all times during the term of this lease, Lessee 7 shall carry a public liability insurance policy in amounts not & less than ONE HUNDRED THOUSAND ($100 ,000 . 00) DOLLARS/TIIREE 9 HUNDRED THOUSAND ($300 , 000 .00) DOLLARS for personal injury and 10 FIFTY THOUSAND ($50 ,000 . 00) DOLLARS for property damage , said 11 policy to be written jointly to protect lessee and lessor. Evi- 12 dence, acceptable to the Secretary, of such coverage shall be 13 furnished the Secretary. zN 1 9 . FIRE AND DAMAGE INSURANCE w > � 9 a w4 = Z 15 Lessee shall, from the date of approval of this lease , Y r u` o 44Q 14 carry fire insurance with extended coverage endorsements , to wry rao 17 include vandalism, jointly in the names of the lessee and lessor, Qz m4 � N lg covering the full insurable value of all improvements on the w n U1 m R; Y j a 19 leased premises . Evidence, acceptable to the Secretary, of 20 such coverage shall be furnished the Secretary. 21 Lessee shall pay all premiums and other charges for 22 such insurance and shall deposit with the Secretary the receipt 23 for such premium or other charge as paid, or satisfactory evi- 24 dence thereof. In the event of damage to any improvement on the 25 leased premises , the lessee shall reconstruct the improvement 26 in compliance with applicable laws and building regulations and 27 in accordance with plans to be approved pursuant to Article 10 23 "Plans and Designs" , hereof. Such reconstruction shall commence 29 within one (1) year after the damage occurs and shall be pur- 30 sued diligently. Insurance proceeds shall be deposited in es- 31 crow with an institution approved by the Secretary . The lessee �2 shall also deposit in said escrow all additional funds required Page Four I I to reconstruct the damaged improvement. Escrow instructions 2 shall include provisions that all funds so deposited shall be 3 used to reconstruct the damaged improvements , and funds shall q be disbursed during the progress of reconstruction on proper 5 architect' s , engineer's or contractor' s certificates . 6 If lessee has not defaulted under this lease , all 7 money in escrow after reconstruction has been completed shall 8 be paid to lessee. If a default has taken place , said money 9 shall remain in escrow as security for performance by lessee 10 until said default is corrected, after which funds remaining 11 shall be paid to Lessee . If Lessee does not correct the default , 12 said funds shall be paid to the lessor. 13 An encumbrancer may be named as beneficiary under the N > � 14 insurance mentioned herein, and in the event of loss or damage C < N W � m 15 to the buildings on the leased property while an approved encum- 16 brance remains unpaid, the proceeds of such insurance (but not Nz � W � 0 0 ❑ a 17 exceeding the amount of the approved encumbrance) shall be paid U z 18 to the encumbrancer. If such amount paid to the encumbrancer m m i � a 19 is sufficient to repair the loss or damage with respect to which 20 it was paid, or if insufficient to repair the loss or damage, 21 and lessor and lessee shall within three (3) months after such 22 payment by the insurer to the encumbrancer deposit with the 23 encumbrancer enough money to completely repair the loss or 24 damage, when added to the amount paid by the insurer to the 25 encumbrancer, the encumbrancer shall, upon written order of 26 lessor and lessee , pay such monies for such repair, and it 27 shall not be deemed a payment or credit on the encumbrance . 28 However, if prior to the expiration of such three (3) month 29 period the lessor and lessee shall not so deposit money with 30 the encumbrancer, the said sum so paid by the insurer to the 31 encumbrancer shall be applied and credited upon the approved 32 encumbrance. Page Five f 1 10 . PLANS AND DESIGNS 2 Within 180 days after the approval of this lease , the 3 lessee shall submit to the Secretary for approval a general 4 plan and architect' s design for the complete development of 5 the entire leased premises . Before beginning any construction 6 whatsoever on the leased premises , the lessee shall submit to 7 the Secretary comprehensive plans and specifications for the 8 improvements then proposed; the Secretary shall approve them 9 if they conform to the general development plan , but shall not 10 assume any responsibility whatever for detailed. design of 11 structure or structures or violation of any state , county or 12 city law or ordinance . The Secretary shall either approve or 13 state his reasons for disapproval of plans and specifications N " 14 within thirty (30) days after receipt thereof from lessee . a 4N W � m Wa ' z 15 No change will be made in plans or specifications after ap- E J d � Y U O 16 proval without the consent of the Secretary. u0 = � m o , z 17 11 . IMPROVEMENTS - - H ¢ r a w M � 18 All buildings and improvements , excluding removable m V J a 19 personal property and trade fixtures , on the leased property 20 shall remain on said property after the termination of this 21 lease and shall thereupon become the property of the lessor. 22 The term "removable personal property" as used in this Article 23 shall not include property which normally would be attached or 24 affixed to the buildings , improvements or land in such a way 25 that it would become a part. of the realty, regardless of whether 26 such property is in fact so placed in or on or affixed to 27 the buildings , improvements or land in such a way as to legally 28 retain the characteristics of personal property. 29 Lessee expressly waives all provisions of state and 30 local law pertaining to improvements affixed to the land by any 31 person acting in good faith and erroneously believing, because 32 of a mistake either of law or fact , that he has a right to do Page Six 1 so, and also providing for removal of such improvements . Any 2 disputes arising under this Article which cannot be resolved by 3 the parties , shall be arbitrated pursuant to Article 26 hereof. 4 12 . CONSTRUCTION, MAINTENANCE, REPAIR, ALTERATION 5 All improvements placed on the leased premises shall 6 be constructed in a good and workmanlike manner and in compli- 7 ante with applicable laws and building codes . All parts of 8 buildings exposed to perimeter properties shall present a 9 pleasant appearance and all service areas shall be screened 10 from public view. The lessee shall have the right at any 11 time during the term of this lease to make limited alterations , 12 additions or repairs to any improvement on the premises in an 13 amount not to exceed $10 , 000 . 00 . Removal or demolition of any N m w s " 14 improvements or alterations , additions or repairs to any im- w ¢ sZ 15 provement in excess of the above amount shall not be made Y U myz4 16 without the prior written consent of the lessor and the Secre- (n Z N w0t � 17 M ' = ? tary. The lessee shall, at all times during the term of this N 4 m lease and at the lessee ' s sole cost and expense, maintain the 19 a premises, and all improvements 'thereon in good order and repair 20 and in a neat, sanitary and attractive condition and in compli- 21 ance with applicable law, ordinance, or regulation. 22 13 . NON-RESPONSIBILITY NOTICES 23 Prior to the commencement or construction of each im- 24 provement on the leased property, or any repair or alteration 25 thereto, the lessee shall give the Secretary ten (10) days 26 advance notice in writing of intention to begin said activity, 27 in order that non-responsibility notices may be posted and 28 recorded as provided by state and local laws . Lessor hereby 29 authorizes the Secretary to post said notices on lessor' s be- 30 half. Nothing contained herein shall be construed as a waiver 31 of immunity of trust or restricted property from mechanics ' 32 or materialmen 's liens nor obligate the Secretary or lessor to Page Seven 1 post non-responsibility notices while the leased premises are 2 in a trust or restricted status . 3 14 . RENTAL BOND 4 Within 150 days from the date of approval of this 5 lease by the Secretary, the lessee agrees to post a bond 6 satisfactory to the Secretary in a penal sum of not less than 7 the first year' s minimum rent, which bond shall be deposited S with the Secretary. The said bond shall be maintained at all 9 times in an amount not less than the sum of the minimum rental 10 payments to become due and payable during the ensuing twelve 11 (12) calendar months of the lease, unless and until the require- 12 ment for such bond is waived by the Secretary. Should waiver of 13 rent bond be granted, the Secretary may require the lessee to 0 w � 14 furnish bond at a later date and lessee hereby agrees to comply C7 z - a w � g 15 with said request. Lessee may furnish a corporate surety bond, J J C � 4 U O � NZQ 16 or in lieu thereof, may deposit with the Secretary , cash or mo = z 17 negotiable United States Treasury Bonds or other negotiable N a N 18 Treasury obligations in the appropriate amount , together with � L QI y J a 19 power of attorney, empowering the Secretary, in the event of a 20 lessee 's default in any of the rent provisions of this lease , 21 to pay over any such cash, or to dispose of any such bonds and 22 pay over the proceeds derived therefrom, to or for the benefit 23 of the lessor, subject to lessee ' s privilege of curing said 24 default as hereinafter provided. Any other type of security 25 which may be offered by lessee to satisfy the requirements of 26 this Article will be given reasonable consideration by the 27 Secretary, but it is agreed that acceptance of bond in lieu 23 of those described above shall be at the sole discretion of the 29 Secretary. 30 It is agreed that bond required by this provision will 31 guarantee payment of rent only and that corporate surety bond 32 shall be in continuous form and may be subject to the provision Page Eight 1 that the surety may terminate said bond after giving forty-five 2 (45) days written notice to the Secretary . If U. S. Treasury 3 Bonds are provided, lessee agrees to make up any deficiency in 4 the value deposited that might occur due to a decrease in the 5 value of the bonds . Interest on said bond shall be paid to 6 lessee. ' 15 . PERFORMANCE BOND $ Before beginning construction of each improvement, 9 lessee agrees to provide security to guarantee completion of the 10 improvements and payment in full of claims of 'all persons for 11 work performed on or materials furnished for construction. 12 Lessee may provide said security by either: N 13 A. Posting a corporate surety bond in an amount m u 3m 14 equal to the cost of each building or other improvement, said Ld ag < o 15 bond to be deposited with the Secretary and to remain in effect Y ¢ U � aWUU 16 until the improvement is satisfactorily completed. Said bond m ooz 17 shall be conditioned upon the faithful performance of lessee, N Q H a m a 18 and give all claimants the right of action to recover upon a 19 a said bond in any suit brought to foreclose mechanics ' or materi- 20 almen's liens against the property; or 21 B. Depositing in escrow with an institution 22 acceptable to the Secretary ,y, negotiable United States Treasury 23 Bonds or cash, in an amount sufficient to pay the entire cost 24 of construction of each building or other improvement then to 25 be erected on the premises . The escrow instructions shall 26 include provisions for disbursement in installments upon certi- 27 fication of lessee 's architect as construction progresses . The 28 lessor and Secretary shall have access to all information rela- 29 tine to the disbursement of funds through said escrow. The 30 escrow instructions shall also provide : that not less than 31 fifteen per---t (15_) of such fends shall be withheld by the 32 escrow holder until the period fixed by law for the filing of all Page Nine 1 mechanics ' or materialmen's liens on such improvement shall have 2 expired or until an acceptable title company issues a title 3 insurance policy which in substance insures the lessor and Secre- 4 tart' against any loss they shall sustain by reason of any 5 statutory liens for labor or material arising out of any work 6 or improvement described in said escrow instructions ; that if 7 mechanics ' or materialmen' s liens are filed, the funds so 3 withheld shall then be used to discharge such liens ; and that if 9 no such liens are filed within the statutory period for filing, 10 the withheld funds shall be then disbursed to the lessee . If 11 U.S. Treasury Bonds are provided, lessee agrees to make up any 12 deficiency in the value deposited which might occur due to a 13 decrease in the value of the bonds . Interest on said b'onds shall N 0 r " 14 be paid to the lessee; or W m C9 zi < W q Z � J o 15 C. Entering into a building loan agreement with X U 0 4 � J Fu � U 16 a financial institution, which building loan agreement and the N Z F N M0 17 amount of the equity of the lessee in the improvements upon U) 18 effecting the loan, shall be subject to the approval of the a 19 Secretary. 20 16 . COMPANIES BONDING AND INSURING 21 All corporate surety bonds provided by lessee in 22 compliance with this lease shall be furnished by companies 23 holding certificates of authority from the Secretary of the 24 Treasury as acceptable sureties on Federal bonds . Insurance 25 policies shall be furnished and maintained by such responsible 26 companies as are rated A plus -AAA or better in the current 27 edition of Best 's Insurance Guide . 28 17 . SUBLEASE, ASSIGNMENT, TRANSFER 29 A. The lessee shall not , unless otherwise expressly 30 authorized herein, sublease, assign or transfer any right to 31 or interest in this lease oi. any of the improvements on the 32 leased premises , without the written approval of the Secretary Page Ten 1 and sureties . No such sublease , assignment or transfer shall 2 be valid or binding without said approval, and then only upon 3 the condition that sublessee, assignee or transferee has agreed 4 in writing to be bound by the terms of this lease . Any sub - 5 lease made , except as aforesaid, shall be deemed a breach of 6 this lease . The Secretary shall either approve or state his 7 reasons for disapproval of the sublease, assignment or transfer 8 within thirty (30) days after the sublease, assignment or trans- 9 fer is submitted for approval; provided, however, that no such 10 approval shall be required for the assignment of a portion of 11 this lease to the assignee of an improved residential lot. 12 B. At such time as lessee submits its plan and design 13 as provided in Article 10 hereof. , it shall also submit a schedule N 3m 14 of annual rents for each residential lot for approval by the Secre- LU c7 wa = � 15 tary. Said schedule shall provide for a total annual rental for asN � < 16 all lots of not less than $25 000 . 00 • The Secretary shall either � t U wr 0 17 approve or state his reasons for disapproval of said schedule m ' � z N 4 F N 18 within thirty (30) days after it is submitted for approval. � m k V J a 19 Lessee shall also submit for approval assignment of lease forms 20 for use in assigning residential lots . Copies of each sublease , 21 assignment or transfer thereof shall be furnished the Secretary. 22 18 . STATUS OF SUBLEASES 23 Termination of this lease, by cancellation or other- 24 wise, shall not serve to cancel approved subleases and/or sub- 25 tenancies , but shall operate as an assignment to Lessor of any 26 and all such subleases and/or subtenancies . 27 119 , AGREEMENTS FOR UTILITY FACILITIES 28 Lessee shall have the right to enter into agreements 29 with public utility companies and the State of California or 30 any of its political subdivisions to provide utility services , 31 including gas , water, electricity, telephone, television and 32 sewer facilities , necessary to the full onjoyment of the Pago Eleven I leased premises and the development thereof in accordance with 2 the provisions of this lease, which agreement shall be binding 3 upon any sublessee or other occupant of 1-,be leased premises ; 4 provided, that no agreement shall cover land noC included in 5 this lease . Upon entering into such agreement or agreements , 6 the lessee shall furnish to the Secretary executed copies there- 7 of together with a plat or diagram showing the true location of 8 the utility lines to be constructed in accordance therewith . 9 20 . RIGHTS OF WAY FOR STREETS AND UTILITY FACILITIES 10 Lessor hereby consents to the granting of rights of 11 way for streets and utility facilities necessary to the full 12 enjoyment of the leased premises and development thereof. Such 13 rights of way are to be granted by the Secretary in accordance N w 14 with the approved general. development plan and pursuant to the a � Qo 15 Act of February 5 , 1948 , 62 Stat. 17, and any amendments thereto , V u 0 C3 ; i � 16 as supplemented by regulations of the Secretary applicable thereto . 17 21 . ENCUMBRANCE m o a z 1Z UJ 18 This lease, or any right to or interest in, or any m n as 19 of the improvements on the leased premises , may be encumbered 20 with the written approval of the Secretary. No such encumbrance 21 shall be valid without said approval . 22 An encumbrance must be confined to the leasehold in- 23 terest of lessee or the subleasehold interest of a sublessee 24 and shall not jeopardize in any way the lessor' s interest in 25 the land. Lessee agrees to furnish as requested any financial 26 statements or analyses pertinent to the encumbrance that the 27 Secretary may deem necessary to justify the amount , purpose 28 and terms of said encumbrance . 29 In the event of default by the lessee of the terms 30 of an approved encumbrance , the encumbrancer may exercise any 31 rights provided in such approved encumbrance , provided that 32 before any sale of the leasehold, whether under power of sale or Page Twelve I foreclosure , the encumbrancer shall give to the Secretary and 2 lessor notice of the same character and duration as is required 3 to be given to lessee by such encumbrance and/or the laws of 4 the State of California. 5 If any sale under the approved encumbrance occurs , 6 whether by power of sale or foreclosure, the purchaser at such 7 sale shall succeed to all of the rights , title and interest 8 of the lessee in the leasehold estate covered by said approved 9 encumbrance. It is further agreed that, if the purchaser at 10 such sale is the encumbrancer, the encumbrancer may sell and 11 assign the leasehold interest without any further consent, 12 provided that the assignee shall agree in writing to be bound 13 by all the teams and conditions of this lease . If the encum- N ' p a c � 14 brancer is the purchaser, it shall be required to perform this 3 � O £ W � ' z 15 lease only long as it retains title thereto. If a sale Y so g t 16 under the approved encumbrance occurs and the purchaser is a N Z N moQz 17 party other than the encumbrancer, said purchaser, as successor N ¢ F a 18 in interest to the lessee, shall be bound by all of the terms m n L ra 19 and conditions of this lease. 20 If notice of such sale shall be given and the defaults 21 or any of them on which such notice of sale is based shall then 22 continue, lessor shall have the right to correct such defaults 23 at any time prior to the date o,f sale or foreclosure , and to 24 terminate such leasehold upon paying to the encumbrancer the 25 amount of principal and accrued interest which remain unpaid, 26 such amount hereafter called the balance of the encumbrance . 27 22 . LIENS, TAXES, ASSESSMENTS , UTILITY CHARGES 28 Lessee shall not permit to be enforced against the 29 leased premises , or any part hereof, any liens arising from 30 any work performed, materials furnished, or obligations in- 31 curred by lessee, and lessee shall discharge or post bond 2 against all such liens before any action is brought to enforce Page Thirteen I� �I 1. same. Lessee shall pay, when and as the same become due and 2 payable, all taxes , assessments , licenses , fees and other like 3 charges levied during the term of this lease upon or against the 4 leased land, all interests therein and property thereon for which 5 either the lessee or lessor may become liable . Upon written 6 request, the lessee shall furnish to the Secretary written 7 evidence, duly certified, that any and all taxes required to 8 be paid by lessee have been paid, satisfied, or otherwise dis - 9 charged. Lessee shall have the right to contest any claim, 10 tax or assessment against the property by posting bond to pre- 11 vent enforcement of any lien resulting therefrom, and lessee 12 agrees to protect and hold harmless the lessor, the Secretary 13 and the leased premises and all interest therein and improve- N b c < N 14 ments thereon from any and all claims , taxes , assessments , w 3m c7 > - a W '< 3 � 15 and like charges and from any lien therefor or 'sale or other P J O V !- V LL a� ; ia 16 proceedings to enforce payment thereof, and all costs in connec- W I U we = � oo 17 Lion therewith. Lessor shall execute and file any appropriate oz N ¢ qua �; mz 18 documents with reference to real estate tax exemption of the land � < J a 19 when requested by lessee . In addition to the rents , taxes 20 and other charges herein described, lessee shall pay all charges 21 for water, sewage , gas , electricity, telephone and other utility 22 services supplied to said premises as they become due. 23 23. LESSOR'S PAYING CLAIMS 24 Lessor shall have the option to pay any lien or charge 25 payable by lessee under this lease, or settle any action therefor, 26 if the lessee after written notice from lessor or secretary fails 27 to pay or to post bond against enforcement . All costs and other 23 expenses incurred by lessor in so doing shall be paid to lessor 29 by lessee upon demand, with interest at the rate of ten percent 30 (100) per annum from date of payment until repaid. Failure to 31 make such repayment on demand shall constitute a breach of the 32 covenants of this lease . Page Fourteen it 1 24 . UNLAWFUL USE 2 The lessee agrees not to use or cause to be used any 3 part of the leased premises for any unlawful conduct or purpose . 4 25 . EMINENT DOMAIN 5 If, at any time during the term of this lease , the 6 leased premises or any part thereof is taken or condemned under 7 the laws of Eminent Domain, then and in every such case the g leasehold estate and interest of the lessee in said premises 9 taken shall forthwith cease and terminate . All compensation 10 aigarded by reason of the taking of the leased premises shall be 11 awarded to the lessee and the lessor as their interests appear 12 at the time of such taking, unless an encumbrance of the lease- 13 hold has been approved, in which case the compensation or award, N w 3 14 only insofar as it is awarded for damages to the improvements 15 on the leased property, to the extent of the unpaid balance of � J C YrU , � N Q 16 any approved encumbrance , shall be paid to the encumbrancer. U1Zu ui wC 17 As between lessor and lessee or sublessor and sublessee, as the 070 p 'L N4� lg case may be, such amount shall be deemed paid to the lessee or w M m m Y J a 19 sublessee and, if such amount exceeds the amount to which lessee 20 or sublessee is entitled under the other terms of this lease , 21 lessee or sublessee shall pay any such excess to lessor or sub- 22 lessor, as appropriate. 23 The rental thereafter payable hereunder for the re - 24 mainder of the term of this lease shall be adjusted by agreement 25 of the parties , subject to -.:he approval of the Secretary. 26 If after the condemnation continuation of this lease 27 is no longer feasible, the lease may be terminated by agreement 23 of the parties , subject to the approval of the Secretary. 29 Any disputes arising under this Article which cannot 30 be resolved by the parties shall be arbitrated pursuant to Arti - 31 cle 26 . hereof. 32 26 . ARBITRATION Page Fifteen I Whenever the terms of this lease require that a dis- 2 puce be settled by arbitration, an Arbitration Board shall be 3 established, consisting of three members , one each to be selected 4 by the lessor and the lessee, and such members to select the 5 third member. The costs of such Arbitration Board shall be 6 shared equally by the lessee and the lessor. The Secretary 7 shall be expected to accept decisions reached by said Arbitra- 8 tion Board, but he shall not be bound by any decision which 9 might be in conflict with the interests of the Indians orthe 10 United States . 11 27. DEFAULT 12 Time is of the essence of this lease . Should lessee 13 default in any payment of monies or fail to post bond, as N O rN 14 required by the terms of this lease, and if such default shall C G N W 3 c+ � gQo 15 continue uncured for the period of thirty (30) days after written Y ¢U 0 16 notice thereof by the Secretary to lessee, or should lessee mooz 17 breach any other covenant of this lease, and if the breach of W <,� ro " " 18 such other covenant shall continue uncured for a period of m i � a 19 sixty (60) days after written notice thereof by the Secretary 20 to lessee, then the Secretary may either: 21 A. Proceed by suit or otherwise to enforce collec- 22 tion or to enforce any other provision of this lease, or 23 B. Re-enter the premises and remove all persons 24 and property therefrom, exc.lading the persons and property 25 belonging to authorized sublessees , and either 26 (1) Re -let the premises without terminating 27 this lease, as the agent and for the account of lessee , but 28 without prejudice to the right to terminate the lease there- 29 after, and without invalidating any right of lessor and the 30 Secretary or any obligation of lessee hereunder. Terms and con- 31 dltlons of s, 1ic rC 1 0 .. L4.IAL.' J.,all he at the discretion of lessor 32 and the Secretary, who shall have the right to alter and repair Page Sixteen i e � I the premises as they deem advisable, and to re-let with or with- 2 out any equipment or fixtures situated thereon. If a sufficient 3 sum is not thus realized to liquidate the total amount due , in- 4 eluding attorney 's fees and real estate commissions paid, lessee 5 shall pay to lessor monthly, when due, any deficiency, and lessor 6 and the Secretary may sue thereafter as each monthly deficiency 7 shall arise . 8 (2) Terminate this lease at any time even though 9 lessor and the Secretary have exercised rights as outlined in (1) 10 above. 11 Any action taken or suffered by Lessee as a debtor 12 under any insolvency or bankruptcy act shall constitute a 13 breach of this lease. In such event the lessor and the N 3m 14 Secretary shall have the options set forth in sub -Articles A and 4Ja 15 B above. J J � Y 4 U 2 ZNza 16 At least forty-five (45) days prior to termination of u U MOo = O 17 this lease for default by the lessee, the lessor or the Secre- © az N q a 18 tary shall give notice in writing to the encumbrancer expressing m < J 19 lessor's intention to 'terminate and describing said default or 20 breach. When the default or breach can be cured by the payment 21 or expenditure of money, this lease will not be terminated if 22 within forty-five (45) days after receipt of such written notice 23 to terminate the encumbrancer shall cure the default or breach . 24 Whenever the encumbrancer exercises any right on a default situa- 25 tion, the encumbrancer shall be bound to comply faith all of the 26 obligations and conditions of the lease. When the default or 27 lbreach cannot be cured by the payment or expenditure of money, 28 this lease will not be terminated if the encumbrancer shall 29 within the said forty-five (45) day period initiate , and there- 30 after diligently pursue to completion, proceedings for fore- J1 closure and sale under and pursuant to the terms of the encum- 32 brance . However, during and until the completion of such forc- Page Seventeen it - 1' a 1 closure proceedings , the encumbrancer shall pay the rents due 2 and payable by the lessee under this lease ; shall maintain 3 all insurance as required by the lease ; shall pay all taxes due 4 and unpaid on the taxable property covered by the lease ; shall 5 begin the cure of any other default or breach not curable by 6 payment or expenditure of money which can reasonably be under- 7 taken by the encumbrancer; and shall diligently prosecute the 8 said cure of such default or breach until the leasehold is 9 either sold upon foreclosure pursuant to the terms of the en- 10 cumbrance or released or reconveyed thereunder. ' 11 In case a default or breach on the part of the lessee 12 occurs durin preceding, g, or due to the bankruptcy, receiver- 13 ship, or insolvency of the lessee and the encumbrancer, prior w 3 � 14 to the receipt of 'the notice of intent to terminate described Z E � Qo 15 herein or within forty-five (45) days after the receipt thereof, Y 4Ui, Fuze 16 shall have filed in the court having jurisdiction over such Mn0 = 17 oz bankruptcy, receivership or insolvent y, a petition £or permis- N r N o � J 18 sion to foreclose, the filing of such petition shall be deemed 19 a to be the beginning of foreclosure proceedings for the purposes 20 of this paragraph. The bankruptcy, receivership or insolvency 21 of lessee shall be considered a breach which cannot reasonably 22 be cured by encumbrancer and one not curable by the payment of 23 money. 24 No waiver of a breach of any of the covenants of this 25 lease shall be construed to be a waiver of any succeeding breach 26 of the same or any other covenant. 27 28 . ATTORNEY' S FEES 28 If action be brought by lessor or lessee in unlawful 29 detainer for rent or any other sums of money due under this 30 lease, or to enforce performance of any of the covenants and 31 32 conditions of this len-Se, the losing party shall pay reasonable attorney' s fees of the prevailing party, to be fixed by the Page Eightoen �I I 1 Court as a part of the costs in any such action. 2 29 . HOLDING OVER 3 Holding over by the lessee after the termination or 4 expiration of this lease shall not constitute a renewal or ex- 5 tension thereof or give the lessee any rights hereunder or in 6 or to the leased premises . 7 Lessee agrees to remove all g property removable under 8 the terms of this lease prior to the termination or expiration 9 of this lease. 10 30. NO PARTNERSHIP; OPERATION OF BUSINESS 11 Regardless of the fact that terms of rental are in 12 part, on a percentage basis , lessee and lessor are not in 13 partnership . N w > � 14 Lessee agrees that, at all times during the term YF � o 15 of this lease, it will diligently attempt to keep the leased a 16 premises and all parts thereof actively used. ecs � 17 All businesses on the leased premises shall be con- o z 18 © ducted during the regular and customary hours of such businesses N m � va 19 a and on all business days in good faith, so that lessor will at 20 all times receive the maximum income under the percentage rental 21 provisions of this lease . 22 31 . TERMINATION OF FEDERAL TRUST 23 Nothing contained, in this lease shall operate to de- 24 lay or prevent a terminatioa of Federal trust responsibilities 25 with respect to the land by the issuance of a fee patent or 26 otherwise during the term of the lease ; however, such termination 27 shall not serve to abrogate the lease. The owners of the land 28 and the lessee and his surety or sureties and encumbrancer or 29 encumbrancers shall be notified of any such change in the 30 status of the land. 31 32 . LESSRP.' S OBLTGATTONS 32 While the leased premises are held in trust by the Pace Nineteen i i. I United States or subject to a restriction against alienation 2 imposed by the United States , all of the lessee 's obligations 3 under this lease, and the obligations of lessee ' s sureties , are 4 to the United States as well as to the owner of the land. 5 33. PAYMENTS AND NOTICES 6 All notices , payments and demands shall be sent to 7 the parties hereto at the addresses herein recited or to such 3 addresses as the parties may hereafter designate in writing. 9 Notices and demands shall, be delivered in person or sent by 10 registered mail . Service of any notice or, demand shall be 11 deemed complete ten (10) days after mailing or on the date 12 actually received, whichever occurs first. Copies of all no- 13 times and demands shall be sent to the Secretary in care of the N ro w 30 14 office of the Bureau of Indian Affairs hereinabove recited. 15 34 . INSPECTION Y 4 U o a NFQ 16 The Secretary and the lessor and their authorized c0 17 representatives shall have the right, at any reasonable times � r ¢ C `� `� N 18 m m � during the term of this lease, to enter upon the leased premises 19 or any part thereof, to inspect the same and all buildings 20 and other improvements erected and placed thereon. 21 35 . DELIVERY OF PREMISES 22 At the termination or expiration of this lease, 23 lessee will peaceably and without legal process deliver up 24 the possession of the leased premises , in good condition, usual 25 wear and Acts of God excepted. 26 36 . LEASE BINDING 27 This lease and the covenants , conditions and restric- 23 tions hereof shall extend to and be binding upon the successors , 29 heirs , assigns , executors and administrators of the parties 30 hereto. 31 37. INTEREST OF MIiMBER OF CONGRESS 32 No member of, or delegate to, Congress , or Resident Page Twenty I` i 1 Commissioner shall be admitted to any share or part of 2 this contract or to any benefit that may arise herefrom, but 3 this provision shall not be construed to extend to this con- 4 tract if made with a corporation or company for its general 5 benefit. 6 38 . VALIDITY 7 This lease, and any modification of or amendment to , 8 shall not be valid or binding upon either party hereto until 9 approved by the Secretary. 10 39 . LESSOR'S DETERMINATIONS, CONSENTS OR APPROVALS 11 Whenever in this lease it is provided that the lessor 12 may exercise any rights or discretions or make any determina- 13 tions , consents or approvals , except changes in guaranteed N a < � 14 minimum rentals , percentage rentals , participation of the w > " w < ' z 15 parties in rentals , term, or surrender of the lease, and the J j 0 X � U 0 = 4 16 leased land is in multiple ownership, the action of those F u U moot 17 lessors holding the majority of interest in the ownership I- aF a w " 18 of the leased premises shall constitute the action of all the m V J 19 lessors for the purpose of this lease and any extention thereof. 20 40 . TAX IbMUNITY 21 Nothing contained in this lease shall be deemed to 22 constitute a waiver of applicable laws providing tax immunity 23 to trust or restricted Indian property or any interest therein 24 or income therefrom. 25 41. FORCE MAJEURE 26 Whenever under this instrument a time is stated within 27 which or by which original construction, repairs or reconstruc- 28 tion of said improvements shall be completed, and if during 29 such period a general or sympathetic strike or lockout , war or 30 rebellion or some other event occurs beyond lessee ' s power to 31 control , the period of delay so caused shall be added to the 32 period allowed herein for the completion of such work. Any Page Twenty-one I i 1 questions of fact arising hereunder shall be arbitrated under- 2 Article 26, "Arbitration" , hereof. 3 Any disputes arising under this Article which 4 cannot be resolved by the parties , shall be arbitrated pursuant 5 to Article 26 hereof. 6 IN WITNESS WHEREOF, the parties hereto have here- 7 unto set their hands . 8 g 9 DATED: � o • a� t 1 �17oL� 10 12 ROBERT STEVEN SAUBEL , "Lessor" 13 N P > N 14 W LBC -,NTE RI Z� a Partnership 4 N 3 m W 4 ' z 15 „Le pp Y u` O ti $ a 16 By- NZ = " 17 / m o a And: W n � i STATE OF CALIFORNIA, it ss. COUNTY OF RIVERSIDE !I before me, the undersigned, a Notary Public in and for said State, personally appeared ti O4Jo40P6400000GOGOC.9•??JQQQ - OFFICIAI. oEAL G RQB� STD F T _�LS�SIBEL t; 1UI IA 61AE WCKS AR � rsmny avenc — c. CKS known to me, 'RINCIOAL OFFICE IN o to be the person_whose name_ i.s subscribed to the within Instrument, HR'EIf51Uc COUNTY ; and acknowledged to me that_he_ executed the same. 4 try Gornmrssmn Expires Mar. 9, 1976 ♦6P�40li�J44P4�44�44UHOVJ WITNESS my hand and official seal. f l- Notary Public in and for said State. ACKNOVrLEOGtAEN7—General—Vlolcotts Form 2]}—Bev. 364 nooucr. L`J 30 31 32 Pago Twenty-Two I AFFIDAVIT OF LESSEE 2 STATE OF CALIFORNIA ) 3 ) ss . COUNTY OF�� _/ ) 4 1Ve , LAWRENCE LAPHAM (PRESIDENT) of LBC, INC . , and PHI IF CRYSTAL, PRESIDENT o. PHILIP CRYSTAL INVESTMENTS , INC. , 5 Lessee, herein, being duly sworn, depose and say that LBC ENTER- PRISES is leasing the land herein for its own use and benefit 6 and not directly or indirectly for the benefit of any other 7 person or corporation. 8t 9 �ignat5 re o Les ee 10 G[G(/�Lcct cw( !• c Ccc� g-lature of Les,se 11 9,ub,ar- ibed.°°and°°swernr� ,t,o°^hefore me his lay of �LT� 19�� MARTHA M. EDGMON 12 slh�' ivorn2e rueuc GALIrOrtMA wr'" onlr" issor�"' tifEa otary u lie in an r ' aEs J"uNE 27 197,,.,,,,. said County and State . 13 oury 6 w � 14 STATE OF CALIFORNIA ) (D ) ss . F < a 1-5 COUNTY 1 UJ / � 16 On /^y before me , the undersigned a Notary Public in an for said State, personally appeared Lawrence MID 17 Lapham, known to me to be the President , and Philip Crystal. , known N4� d to me to be the president of the corporations that executed the w " 18 within instrument on behalf of the corporations therein named, m � 0. 19 and acknowledged to me that such coprorrations executed the rritizin instrument pursuant to their by-laws or a resolution of their board of directors .. ......... ................, M. EDGiMION 21 WITNESS my hand and official seal. � 'N P.IVER;�oz CJJiJTY 22 Rotary Public 'in and o aid county andYState. ti,..J.L;' . 27. .......... .... ? �% 1976 23 24 AFFIDAVIT OF LESSOR 25 STATE OF CALIFORNIA ) ) ss . 26 COUNTY OF g; �n ) 27 I , the undersigned, ROBERT STEVEN SAUBEL Lessor of the witliin lease , iereby certi y t at the contents , 28 purport , and effort of the within lease are fully understood by me , and that I signed the lease of my own free 29 will. 1 p � 30 Signature of 7e`ssor 31 Subscribed and sworn to before me this day of 19 7/L �t 32 oV y Pu lie in an for said Cou Ety and State . Page Twenty-Threo