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Home My WebLink About01472 - JELINOR DEV CORP LEASE 9 ACRES OF AIRPORT LAND r� RECORDING REQUESTED BY AND r + WHEN RECORDED, RETURN TO: w ° �4- O City Clerk %Yma�� c) a �W 1F City of Palm Springs �j c x �' C2 Post Office Box 1786 0 Palm Springs, California 922636 l MEMORANDUM OF AGREEMENT .* FOR CANCELLATION OF LEASE This Memorandum of Agreement for Cancellation of Lease is entered into so as to be effective the 1st day of May 1968, by and between the City of Palm Springs, California, a Municipal Corporation, (hereinafter sometimes referred to as "City" or "Lessor") , Bank of America National Trust and Savings Association (hereinafter sometimes referred to as "Bank") , and BA Properties I:, Inc. , a Delaware Corporation (hereinafter sometimes referred to as "Lessee") . In consideration of the mutual covenants herein set forth and other valuable considerations, the parties hereby agree as follows: R E C I: T A L S A . The City owns that certain real property (hereinafter sometimes referred to as the "Property" ) described in EXHIBIT A, located in the City of Palm Springs, County of Riverside, State of California . EXHIBIT A is attached hereto and incorporated herein by this reference; B. On or about January 5, 1979, the City and Jelinor 1 ii i:r,eUilc;:;r;19i^d,',;-Pstq tf!ii k,1J Rirn,'a Cl`Ivi9 ripst Bu[ay seal p;cp,rif r I r :,if�d Yinreie, 2 Development Corporation entered into a Lease Agreement Q'7 relating to that property described on EXHIBIT A. The Lease Agreement was recorded October 12 , 1979 as Instrument No. 216703 of the Official Records of Riverside County; C. Bank recorded a Deed of Trust against Jelinor Development Corporation ' : leasehold interest to secure payment of a promissory note. By Trustee ' s Deed recorded April 18 , 1983 as Instrument No. 72602 of the Official Records of Riverside County, Bank succeeded to the interest of Jelinor Development Corporation in and to the original Lease dated January 5, 1979 ; D. Subsequent to recording of the Trustee ' s Deed, Bank assigned its interest in the Lease dated January 5, 1979 to BA Properties I, Inc. , a Delaware Corporation; E . The City and Lessee later agreed to amend and restate the provisions of the Lease Agreement dated January 5, 1979 ; and F. Lessor and Lessee: now desire to enter into this Agreement; it being the intent that the provisions of this Agreement shall supercede the provisions of the Lease Agreement dated January 5, 1979 . NOW, THEREFORE, the parties hereby agree as follows: 1. The Lease Agreement dated January 5 , 1979 as entered into between the City of Palm Springs, California as lessor and Jelinor Development Corporation as lessee shall 2 c^I hereby deemed to be cancelled and of no further force and/or effect. 2 . As part of the agreement relating to the cancellation of the Lease dated January 5, 1979 , City and BA Properties I, Inc. entered into two new leases relating to a portion of the property. Indenture of Lease Agreement No. 2528 dated May 1, 1988 was entered into between the City of Palm Springs, California as lessor and BA Properties I, Inc. as lessee with regard to that property described as Lot 3 of Tract No. 14573 . The full legal description of the leased premises is set forth at Exhibit "A" to Indenture of Lease Agreement No. 2528 as recorded May 17 , 1988 as Instrument No. 130754 of the Official Records of Riverside County. The City of Palm Springs, California as lessor and BA Properties I, Inc. as lessee entered into Indenture of Lease Agreement No . 2529 dated May 1, 1988 regarding Lot 1 of Tract No . 14573 . The full legal description of the leased premises is set forth on Exhibit "A" to Indenture of Lease Agreement No. 2529 as recorded May 17 , 1988 as Instrument No . 130753 of the Official Records of Riverside County. 3 . On execution of Indenture of Lease Agreement Nos . 2528 and 2529 , and on cancellation of the Lease dated January 5 , 1979 , the City and Lessee agreed that Lessee would be deemed to have effectively assigned its leasehold interest as to Lot 2 of Tract No. 14573 back to the City. 3 LESSOR: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA A Mun yipal Corporation By City Clerk Norman R. King, eCity Manager LESSEES: REVIEWED AND APPROVED: BANK OF AMERICAN NATIONAL TRUST AND SAVINGS ASSOCIATION, -- BY C ati David Eales, YJ,(.e- ( yea _eat i' BA PROPERTIES I, INC. , A D lawaare Corporation By -- David Eales, Exec. Vice President CORPORATE .ACKNOWLEDGEMENT STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) On this 7 �? day of 1988 , before me , a Notary Public in and for saird County, appeared NORMAN R. KING , personally known to me (or proved to me on the basis of satisfactory evidence) to be the City Manager and JUDITH SUMICH, known to me to be the City Clerk of the CITY OF PALM SPRINGS , the corporation that executed the within instrument, known to me to be the persons who executed the within instrument, on behalf of the corporation herein named, and acknowledged to me that such corporation executed the within instrument and that such execution was pursuant to its bylaws or a resolution or ordinance. Witness my hand and official seal: Eula � ny PUBLIC-CALIFOFlNIA Ndta±y Public,"' RIVERSIDECOUIVTV mm Erpims Doc 25 1090 !( 4 c� �a ell! C7 STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN FRANCISCO ) On this 18th day of October 1988 , before me, a Notary Public in and for said County , appeared DAVID EALES , personally known to me (or proved to me on the basis of satisfactory evidence) to be Vice President _ on behalf of BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, and also known to me to be the person who executed the within instrument on behalf of the corporation herein named, and acknowledged to me that: such corporation executed same and that such execution was pursuant to its bylaws or a resolution of its board of directors. Witness my hand na d official seal: Notary Public OFFICIAL AL ELVA CASTE'LLANOS a y; NOTARY PUBLIC CALIFORNIA } E SAN FRANY)19'IL'0 COUNTY My coma, expires JAN 2.7, 1"2 STATE OF CALIFORNIA ) ss. COUNTY OF SAN FRANCISCO ) On this 18th day of October 1988 , before me, a Notary Public in and for said County , appeared DAVID EALES , personally known to me (or proved to me on the basis of satisfactory evidence) to be Executive Vice President on behalf of BA Properties I, Inc. , and also known to me to be the person who executed the within instrument on behalf of the corporation herein named, and acknowledged to me that such corporation executed same and that such execution was pursuant to its bylaws or a resolution of its board of directors. Witness -my hand and.-official seal: _ OFFICIAL SEAL ELVACASTELL'ANOS Notary -Public'' NOTARY PUBLIC- CALIFOR iA, :L�'sy SAN FR'AN�CI"-() COUNTY G.9y coirtrn. expiry„ TAN 27, 5 T1 cl� E� EXHIBIT A TO MEMORANDUM OF AGREEMENT FOR CANCELLATION OF LEASE That portion of Lots 1 and 16 in Section 13 , Township 4 South, Range 4 East, San Bernardino Base and Meridian, as shown on Map of Palm Valley Colony Lands , according to map thereof recorded in Book 14 , Page 652 of Maps, Records of San Diego County, California, being in the City of Palm Springs, County of Riverside, State of California, described as follows: Commencing at the Northeast corner of Lot 55 of Sunmor Estates No. 1, according to map thereof recorded in Book 28, Page 58 of Maps Records of Riverside Count . California; ox thence South 89 53106" East. (Record South 89 53 ' East) along the Easterly prolongation of the Northerly line of said Lot 55, a distance of 95. 00 felt to the TRUE POINT OF BEGINNING; thence continuing South 89 53106" East, a distance of 529. 57 feet to a point on a line that is parallel with and 44 . 00 feet Westerly gf the Easterly line of said Section 13 ; thence North 0 0513011 East, along said parallel line , a distance of 747 . 92 feet; thence South 89 53156" West, a distance of 530 . 19 feet to a point on a line that is parallel with and 95 . 00 feet Easterly of the Easterly boundary line of said Sunmor Estdates No. 1 and its Northerly prcolongation; thence South 0 02138" West (Record South 0 04 ' West) along said parallel line, a distance of 745 . 92 feet to the TRUE POINT OF BEGINNING. EXHIBIT A J BA Properties 1, Inc. Residential OREO Sales Group #3361 Post Office Box 37000 San Francisco, CA 94137 (415) 624-1280 September 9, 1987 Mr. Allen F. Smoot City of Palm Springs Transportation and Energy Dept. 3400 E. Tahquitz-McCallum Way Palm Springs, CA 92262 Dear Mr. Smoot: RE: Lease Agreement #1472 Per your letter dated July 30, 1987, enclosed are Certificates of Insurance per the above-captioned document. Please call me at 415-624-3210 if you have any questions regarding this matter. Sincerely, Karen C. Oishi Senior Property Manager enclosures U SEP.141987 TRANSPORTATION in ENERGY KCO:sb/163s 70 PINE ST. , NY, NY 10005 CERTIFICATE OF PROPERTY INSUQIWdKPE Certificate Issued to: Named Insured: �q�j S-P City of Palm Spring —2 Aid 8: 47 BankAmerica Corporation and/or P.O. BOX 1786 Bank of America NTBSA Palm Springs, CA 92263-1786 R ECEIVit-: 3 � �C� RE: Building and /or structure and/or ' ,; ) 198,7 Corporate Risk and Insurance Personal Property and improvements r Management Services ##3202 and betterments of the named insured iT� �� Gpi< World Headquarters Building situated at: See Attach Lease Agreement ##1472 P.O. Box 37000 San Francisco, CA. 94137 Also known as: XBR31 This is to certify that the below designated policy has been issued by the Company indicated and is in force on the date borne by this Certificate. The policy indicated herein applies with respect to the hazard and for the coverage and limits of liability indicated by specific entry herein, subject to all the terms and conditions of such policy. This Certificate is not an insurance policy and does not amend or alter the coverage afforded by the policy listed on this Certificate. Such insurance as provided hereunder shall inure to the benefit of any additional insured or loss payee named below, but only for such coverages and to the extent that the Named Insured has agreed to provide under written agreement. Coverage: Virtually All Risks Excluding earthquake and flood Policy No. : F9150299 National Union Fire Insurance Company Term: 2-1-86 to 3-1-88 Limits of Liability: $15,000,000 Each Occurrence and is subject to the policy's self insured retention. Additional Insured: City of Palm Spring Loss Payee as per Lenders Loss Payable Endorsement 4386FUNS (5/42) attached: Should the above mentioned policies be cancelled, assigned or materially changed during the above named policy period in such a manner as to affect this Certificate, the Company will give thirty (30) days written notice to the holder of this Certificate. This certificate is issued as a matter of information only, and confers no rights on the holder. It imposes no liability upon the Company and does not amend, extend or alter in any way the coverage or the limits of liability afforded by the policy designated herein. ' Notwithstanding any requirement, term or condition of any contract or other document with respect to which this Certificate is issued, the insurance afforded by the policy listed on this Certificate is subject to all terms of such policy. The above insurance arranged through: Date of issue: September 1 , 1987 Johnson E Higgins of California 345 California Street San Francisco, CA 94104 (Underscored wording required by State of California) CERTIFICATE OF INSURANCE ,_ , Certificate Issued to: Na* Insured: . City of Palm Spring BankAmerica Corporation and/or P.O. Box 1786 Bank of America NTBSA Palm springs, CA 92263-1786 19gi S,yP .,2 GIB g: 47 ge��rdS 1`j•1't•"1Rm��1 Corporate Risk and Insurance Management Services ##3202 P.O. Box 37000 San Francisco, CA. 94137 RE: Leased Premise- Airport Park Plaza B.A.P. Number 3001 This is to certify that the below designated policy has been issued by the Company indicated and is in force on tha date borne by this Certificate. The policy indicated herein applies with respect to the hazard and for the coverage and limits of liability indicated by specific entry herein, subject to all the terms and conditions of such policy. This Certificate is not an insurance policy and does not amend or alter the coverage afforded by the policy listed on this Certificate. Coverage: COMPREHENSIVE GENERAL LIABILITY INSURANCE COMPREHENSIVE AUTOMOBILE LIABILITY INSURANCE Policy No. : GL915-0302 National Union Fire Insurance Company BA915-0302 Term: 2-1-85 to 3-1-88 Limits of Liability: $1 ,000,000 Combined Single Limit for Bodily Injury and/or Property Damage Liability each occurrence and in the aggregate where applicable and is subject to the policy's self insured retention. 1 . This policy insures all automobile owned, hired, leased or maintained by the Named Insured; 2. This policy insures all operations, premises and activities of the Named Insured including Products Liability and liability assumed under written agreements; 3. Under this policy, the Insured includes: City of Palm Spring Any individual , firm, co-partnership, corporation, political subdivision, commission, board or agency thereof including the officers and members of such political subdivision, commission, board or agency or any other entity for whom the Named Insured has contracted or during the currency of this policy may contract under written contract usual or incidental to such Named Insured's business to procure liability insurance but only to the extent and in the amount for which such Named Insured has contracted to procure insurance and in no event to exceed the limits of liability set forth in the policy. Should the above mentioned policies be cancelled, assigned or materially changed during the above named policy period in such a manner as to affect this Certificate, the Company will endeavor to give thirty (30) days written notice to the holder of this Certificate. This certificate is issued as a matter of information only, and confers no rights on the holder. It imposes no liability upon the Company and does not amend, extend or alter in any way the coverage or the limits of liability afforded by the policy designated herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this Certificate is issued, the insurance afforded by the policy listed on this Certificate is subject to all terms of such policy. The above insurance arranged through: Date of Issue: September 1, 1987_ .- Johnson a Higgins of California 345 California Street San Francisco, CA 94104 (Underscored wording required by State of California) l� 71115 SHOULD DE FRAMED AND P �T �,1E CONSPICUOUSLY DISPLAYED I t STATE OF CALIFORNIA QEPARTMENT OF INDUSTRIAL RELATIONS 1455 1�i13ALllG17____----------------- OFFICE OF THE DIRECTOR CER71RCATi E OF COMSENTi TO SELF IMSMI DANK. OF AIcRICA NATIONAL TRUST & SAVINGS ASSOCIATION _ T_ THIS IS TO CERTIFY, That----___ -_-_--- _--------- has complied with the requirements of the Director of Industrial Relations under the provisions of Sections 3700 to 3705, inclusive, of the Labor Code of the State of California and is hereby granted this i Certificate of Consent to Self-Insure. E This certificate may be revoked at any time for good cause shown.' DATED AT SAN FRANCISCO. CALIFORNIA, DE R MENT OF INDUSTRIAL ELATIONS �p TySTAT FC LlF 1 N ; ',•y �'i�� rr THIS ISt DAYOF January, 1a73. I f p, s a H• EDSL6RD SJI► T euaa+nt Arun `� 1/ :i.`• 1 ('� ED:IAILD D. STi2UC1 , Jr. ' dry 11 1.lanager, Self-Insurance Flal • Ilevocation of GerlrrGcate.—"A certificate of consent to self-insure may J,e IooLed try the Director of Industrial Relations N any time for good cause after ■ htaring. Good cause includes, among odro things, lie inl{{milwenl of the solvency of surly employer, the inability of the employer to fullill Ids ubligations, or the practice b} such employer or his agent in charge of the amainislralion of obbgaliols under ibis division Of any of the folloe�ng: (a) flaiilually and au a matter of pracnce and custom inducing clannants for compensation to accept less than the compensation due or making it necessary fur Ihem to resoll to Pmeeedings a Callrsl lie employer to secure lie compensation due, (b) Discharging Ins cnmpcnsadall obbgations in a dahoncst ulannerp (t) Discharging his rromperuanaR oLLgaaoos in such a manner as to cause injury to the public or those deabng with 111m." (section 374: of Labor Corte.) • 1 iL ••r.p.a1 blr M rp e.r FQ..A-4-ID 1 "� • /U PINt bl . , NY, IVY luu(A CERTIFICATE OF PROPERTY INSU't"'P' Certificate Issued to: Named Insured: �987 SEP -2 BankAmerica Corporation and/or City of Palm Spring All 8� 47 p P.O. BOX 1786 Bank of America NT&SA Palm Springs, CA 92263-1786 � i .OREE) RE: Building and /or structure and/or Corporate Risk and Insurance Personal Property and improvements Management Services #3202 and betterments of the named insured World Headquarters Building situated at: See Attach Lease Agreement #1472 P.O. Box 37000 San Francisco, CA. 94137 Also known as: FHik�t��FiXBfF �369 This is to certify that the below designated policy has been issued by the Company indicated and is in force on the date borne by this Certificate. The policy indicated herein applies with respect to the hazard and for the coverage and limits of liability indicated by specific entry herein, subject to all the terms and conditions of such policy. This Certificate is not an insurance policy and does not amend or alter the coverage afforded by the policy listed on this Certificate. Such insurance as provided hereunder shall inure to the benefit of any additional insured or loss payee named below, but only for such coverages and to the extent that the Named Insured has agreed to provide under written agreement. Coverage: Virtually All Risks Excluding earthquake and flood Policy No. : F9150299 National Union Fire Insurance Company Term: 2-1-86 to 3-1-88 Limits of Liability: $15,000,000 Each Occurrence and is subject to the policy's self insured retention. Additional Insured: City of Palm Spring Loss Payee as per Lenders Loss Payable Endorsement 438BFUNS (5/42) attached: Should the above mentioned policies be cancelled, assigned or materially changed during the above named policy period in such a manner as to affect this Certificate, the Company will give thirty (30) days written notice to the holder of this Certificate. This certificate is issued as a matter of information only, and confers no rights on the holder. It imposes no liability upon the Company and does not amend, extend or alter in any way the coverage or the limits of liability afforded by the policy designated herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this Certificate is issued, the insurance afforded by the policy listed on this Certificate is subject to all terms of such policy. The above insurance arranged through: Date of Issue: September I , 1987 Johnson & Higgins of California 345 California Street San Francisco, CA 94104 (Underscored wording required by State of California) ------------ THIS SHOULD BE FRAMED AND 1' �T RE CONSPICUOUSLY DISPLAYED 1 a I STATE OF CALIFORNIA 1455 DEPARTMENT OF INDUSTRIAL RELATIONS NUMBER__ ____________ OFFICE OF THE DIRECTOR CENTHPICATC OF CONZENTi TO SELF-INSURE THIS IS TO CERTIFY, That__BA41K OF At_MRICA NATIONAL TRUST fir SAVINGS ASSOCIATION has complied Nvith the requirements of the Director of Industrial Relations under the provisions of I Sections 3700 to 3705, inclusive, of the Labor Code of the State of California and is hereby granted this iCertificate of Consent to Self-Insure. [{ This certificate may be revoked at any time for good cause shown.' 1 I DATED AT SAN FRANCISCO. CALIFORNIA. DE 7MENT OF INDUSTRIAL ELATIONS l s 1 l\ r OAT STAT F C LIF I �� -'•��,'-l`\ 1'`'`. %� 'j THIS Is t DAY of January, ,p 73. H. EIYMARD t T , °1•° '• • ��i �,�, � , ,� . 1 � A,Tc.r, iJ'k, , t •� "� I? d . IC{ ED:;ARD D. STRUCK, Jr. t'Sanaoer, Self-Insurance Pla • Revocation Of eroEcate.='A certificate of consent to self-insure may be resoked by the Director of Industrial Relations at any time for good cause after a hearing Good cause includes, among other things, the impairment of the solvency of such employer, the inability of the employer to fulfill his ohhgations, or the pr in actice by such employer or his agent of charge of the administration of obligations under this division of any of the followg: (a) Habitually and as a matter of practice and custom inducing claimants for compensation to accept less than the compensation due or mating it neeessary for them to resort to proceedings auinst the employer to secure die compensation due; (b) Discharging his compensation obligations in a dishonest manner; (e) Discharging his ooinpersahou oLhgations w such a manner as to cause injury to the public or those dealing with him." (Section 3702 of Labor Code.) ` 1 Fong A.A.1 D wn•m, n am rp ev C®ntilteA tal Auxiliary Kintia-ny 45 SOUTH HUDSON AVENUE PASADENA.CALIFORNIA 91101 Please reply to: Foreclosure Section P.O.Box 7082 Pasadena.CA 91109 December 21, 1982 City Clerk City Of Palm Springs Palm Springs, CA 92262 Re: Selinor Development Corporation 255 N. E1 Cielo Road Palm Springs, CA 92262 Lot 3 Tr. 14573 Trustee Sales #4-0611-743 Attn: Ed Colby Gentlemen: Per your request through the Newport Center Branch of Bank of America, we enclose a copy of Recorded Notice of Default, filed October 13, 1982. We trust the above described enclosure will be sufficient notice in this matter. If you have any questions regarding this Foreclosure, please contact the lender - Newport Center Branch direct. Sincerely,.. 7 Doris EL' f d Foreclosure Officer DEG/rhi cc: Walter Nielsen Vice President & Manager Newport Center Branch #1020 500 Newport Center Drive Newport Beach, CA 92600 DEC ri/I RECORDING REQUEOED BY l And when Recorded Mail to ¢x 7 GAD ib cn 010 Name BANK OF AMERICA IJ N.T. & S.A. R �c' r--. - j an usm�nt np 0 Foreclosure Section } C:) Street Bin 92 Ic Address �3 City & State Pasadena, California 91109 5 DORIS E. GOLD 4-0611-743 Trustee Sales Officer Foreclosure No. IMPORTANT NOTICE IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within three months from the date this notice of default was recorded. J This amount is $2,285,083.90 as of October 12, 1982 , , rn (Date) and will increase until your account becomes current. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay the amount stated above. After three months from the date of recordation of this document (which date of recordation _ appears hereon), unless the obligation being foreclosed upon permits a longer period, you have only the legal right to stop the foreclosure by paying the entire amount demanded by your creditor. To find out the amount you must pay, or to arrange for payment to stop the foreclosure,or if your property is in foreclosure for any other reason, contact: WALTER NIELSEN, vice President & Mgr. Note No. 5295-232-OT 10964 BANK OF AMERICA NT & SA (Name of beneficiary or mortgagee) Newport Center #1020 500 Newport Center Drive NPw,art Rear, CA 92600 (Mailing address) (714) 759-4417 (Telephone) you have any questions, you should contact a lawyer or the government agency which may ive insured your loan. member, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ,TI ON. 8 Page 1 of 2 , RL'l"G�it(ug Y,,gcj sced By: f'L:L:UHDED MAIL TO: liANVi OF AMERICA NT & SA V. 0. Box 7082 r^ paa;adena, California 91109 Foreclosure Section s: ei NOT-ICE OF DEFAULT 4-0611-743 WHEREAS, as of September 4, 1980, JELINOR DEVELOPMENT CORPORATION, a corporation, as Trustor, executed a Deed of Trust to CONTINENTAL AUXILIARY COMPANY, a California corporation, as Trustee For BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a national banking association, as Beneficiary, to secure a promissory note of even date for the sum of $2,250,000.00 and additional sums pursuant to the terms of the Deed of Trust, which was recorded on September 18, 1980, as Instrument No. 169975, Official Records of Riverside County, California; and WHEREAS, a breach of the obligations for which said Deed of Trust is security has occurred in that there has been a default in the payment of the then principal balance in the amount of $1,836,176.00 plus interest at 1.5% in excess of BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION`S Prime Rate as from time to time in effect from July 26, 1981, evidenced by a promis- sory note dated September 4, 1980 in the principal amount of $2,250,000.00 exe- cuted by JELINOR DEVELOPMENT CORPORATION, a corporation and payable to the order of said Beneficiary on demand, or if no demand is made, then on September 3, 1981 together with interest at the aforementioned rate; and a default in the payment of the sum of $4,704.00 advanced by said Beneficiary for the fire in- surance premium on the property covered by said Deed of Trust; and a default in the payment of the sum of $8,711.67 advanced by said Beneficiary for Lease Payments due the City of Palm Springs on the property covered by said Deed of Trust; and a default in ttie payment of interest at the aforementioned rate on such advances, together with future advances, if any; and failure to pay taxes. NOW, THEREFORE. notice is hereby given that by reason of such default the undersigned, the owner and holder of said note and Deed of Trust, has exercised its option and has declared, and does hereby declare said indebtedness and all sums secured by said Deed of Trust immediately due and payable; and that the undersigned elects to cause the property described in the Deed of Trust above referred to, the record of which is made a part of this notice for description of the premises, to be sold in accordance with the prgvisions thereof, to sa- tisfy said obligations. DONE, at Pasadena, California, October 7, 1982. BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION BY ��- Blanche Harrison Assistant Vice President Continettal Auxiliary Aompany 45 SOUTH HUDSON AVENUE PASADENA,CALIFOFINIA 91101 Please reply to: Foreclosure Section P.O.Box 7082 December 21, 1982 Pasadena,CA 91109 City Clerk City of Palm Springs Palm Springs, California 92262 Re: Jelinor Development Corporation 255 N. El Cielo Road Palm Springs, CA 92262 Lots 1 & 2 of Tract 14573 Our Trustee Sales #4-9452-743 Attn: Ed Colby Gentlemen: As per your request through the Newport Center Branch we enclose copies of the Notice of Default recorded June 8, 1982 as Instrument No. 97624 and Notice of Sale recorded October 22, 1982 as Instrument No. 182873, relative to the loan secured by the First Trust Deed against the above captioned property. Please be advised that the subject property was acquired by the Bank through the Trustee's Sale on November 12, 1982. We trust this information is sufficient. If you have any further questions in this matter, please contact Jack Bennett, Sales and Marketing Department, Bank of America, P.O. Box 7082, Pasadena, California 91109 (213-578-7733) . Sincerely;., Doris E4 Gold Foreclosure Officer DEG/rhi cc: Walter Nielsen Vice President & Manager Bank of America NT & SA Newport Center Branch #1020 500 Newport Center Drive Newport Beach, CA 92600 ;, , Jack Bennett y Assistant Vice President Sales & Marketing Department #4327 Bank of America NT & SA P.O. Box 7082 Pasadena, CA 91109 fu .r•di.ng Requested By: pp f9 (� U� U cri 3 Y1 d `i 00 � tr+ _ 8 1Cl WHEN RECORDED MAIL TO; p- 1Z BANK OF AMERICA NP & SA L� u ow �g o P.O. Box 7082 Go Pasadena, California 9.1109 }Wy�F L � O �¢ Foreclosure Section U _ zs CY M Y y f NOTICE OF TRUSTEE 'S SALF. LL 4-9452-743 YOU ARE IN DEFAULT UNDER A DEED OF TRUST DATED NOVEMBER 28, 1979 . UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT f A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE � PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER. On the 12th day of-"November 1982, at the hour of 11:00 a. m., at the Main Street entrance of the Riverside County Courthouse, located at 4050 Main Street----------------------------------------------------------, situated in the City of Riverside , County of Riverside , State of California, CONTINENTAL AUXILIARY COMPANY, a California Corporation, as Trustee under Deed of Trust dated November 28, 1979, executed by JELINOR DEVELOPMENT CORPORATION, a California Corporation, and recorded on December 13, 1979as Instrument No. 264464 ,in Book 1979, Page 264464 of Official Records, County of Riverside California, given to secure an indebtedness in favor of Bank of America National Trust and Savings Association, a national banking association, by reason of the breach of the obliga- tions secured thereby, notice of which was recorded on June 8, 1982 as Instru- ment No. 97624 in Book1982 Page97624 of Official Records of said Riverside County, and more than three months have elapsed since such recordation, will sell at public auction to the highest bidder for cash or a cashier's check drawn on a state or national bank, a state or federal credit union or a state or federal savings and loan association domiciled in this state„ (payable at time of sale in lawful money of. the United States of America) without covenant or warranty, express or implied , as to title, possession or encumbrances , the interest conveyed to and now held by the said Trustee under said Deed of Trust, in and to the following described property situated in the County of Riverside State of California, to wit : See Exhibit "A" attached and made a part hereof. The address or other common designation, if any, of the real property described above Is purported to be: 255 N. El Cielo Road, Palm Springs, California ; the undersigned Trustee disclaims any liability for any incorrectness of the address or other common designation, if any shown herein. If the aforesaid property has no street address or other common designation, directions as to how to locate such property may be obtained from the Beneficiary under said Deed of Trust, at whose request the sale is to be conducted, pursuant to a written request submitted, within ten days from the first publication of this Notice, to such Benefi- ciary at the following address: BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, LOAN ADJUSTMENT DEPARTMENT #4327, FORECLOSURE SECTION, 45 SOUTil HUDSON AVENUE, PASADENA, CALIFORNIA 91101. 1%e unpaid balance of the note (s) secured by said Deed of Trust, with interest thereon, as provided in said note (a) , advances if any, under the terms of said Deed of. Trust, including fees, charges and expenses of the Trustee, as of the date of the initial publication of the Notice of Sale, to wit : $2,939,569.06. Name, Street Address and Telephone Number of Trustee or person conducting sale is: Dated October 6, 1982 CONTINENTAL AUXILIARY COMPANY 45 South Hudson Avenue - 6th Floor Pasadena, California 91101 By Bl the Harrison Assistant Secretary (213) 578-6010 EXHIBIT A A Leasehold Estate dated Janu'ary 5, 1979 and recorded October 12, 1979 in Book 1979, page 216703, official records of Riverside County in and to that certain property 00 described as follows: r-1 Those portions of Lots 1 and 16 in Section la ; Township 4 South; Range 4 East, San Bernardino Meridian, as shown on Map 'of PALM VALLEY COLONY LANDS, as per map recorded in Book 14, Page 652 of Maps, in the office of the County Recorder of San Diego County, California, described as follows: Beginning at the Southeast corner of Lot 55 of SUNMOR ESTATES NO. 1, as par map recorded in Book' 28 , Page 58 of Maps, in the office of the County iecorder of Riverside County, California; Thence northerly on the East line of said lot, North 000 04 ' 00" East 126.54 feet to the intersection of the Northerly prolongation of said Easterly line and the Centerline of Lot "G" of said SUNMOR ESTATES :NO. 1; Thence Easterly on the Centerline of said Lot "G" South 890 47 ' 48" East 7.00 feet; Thence South 001 08 ' 57" West , 25. 25 feet; Thence South 89" 47 ' 46" East, 25. 00 feet to the true point of beginning; Thence South 89° 47' 48" East, 529 . 51 feet; Thence North 00" 10 ' 10" East, 737. 73 feet to the beginning of a curve concave Southwesterly of 20. 00 feet radius; Thence Westerly, 31 .48 feet on said curve, through a central angle of 90" 11 ' 35" ; Thence South 890 58 ' 35" West, 489.77 feet to the beginning of a curve concave Southeasterly of 20. 00 feet radius; Thence Southerly 31 . 36 feet on said curve through a central angle of 89" 49 ' 38" ; Thence South 000 08' 57" West, 735.76 feet to the tiue point of beginning. Said land is also shown as Lots 1 , 2 and 3 of TRACT 14573, recorded in Book 109, pages 97 and 98, Official Records of Riverside County Lot 3 was partially reconveyed by instrument recorded September 18 , 1980 in Book 1980, page 169976, Official Records. RECORDING REQUI_ ! BY And when Recorded Mail to Name BANK OF AMERICA N.T. & S.A. THE IMPORTANT NOTICE RECORDED Loan Adjustment Dept. #4327 ON .TUNE 8, 1982 IN THE COUNTY Foreclosure Section OF RIVERSIDE AS INSTRUMENT NO. 97624 Street Bin 92 Address City & State Pasadena, California 91109 DOF.IS E. GOLD 14-9452-7 Trustee Sales Officer Foreclosu43re No, IMPORTANT NOTICE IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, and you may have the legal right to bring your account in good standing by paying all of your past due payments plus permitted costs and expenses within three months from the date this notice of default was recorded. This amount is —$2 795,788.49 as of Fay 24, 1982 (Date) and will increase until your account becomes current. You may not have to pay the entire unpaid portion of your account, even though full payment was demanded, but you must pay the amount stated above. After three months from the date of recordation of this document (which date of recordation appears hereon), unless the obligation being foreclosed upon permits a longer period, you have only the legal right to stop the foreclosure by paying the entire amount demanded by your creditor. To find out the amount you must pay, or to arrange for payment to stop the foreclosure,or if your property is in foreclosure for any other reason, contact: SALTER NIELSEN, Vice President & Mgr. Note No. 5260-239-10488 13AN't OF Ax[ERICA ITT & SA (Name of peneficiary or mortgagee) Newport Center #1020 500 Newport Center Drive -Nawp= --Ra tci CA 9?_600. (Mailing address). (714) 759-4417 (Telephone) If you have any questions, you should contact a lawyer or the government agency which may have insured your loan. Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT ACTION. Page 1 of 2 „ r�,;cordlnU ricyuesr�� 1, OMEN RLCOIUJED ;MAIL TU: HN,h: OF A,dERICA NT :SSA P.G. Uox 70U2 Pasadena, California 91107 Foreclosure :,ection �10TICE OF BREACH 4-9452-743 WHEREAS, as of Novemuer 23, 1979, JELINOR DEVEL&PMLNT CORPORATION, a California Corporation, as Truster, executed a Deed of Trust to CONTINENTAL AUXILIARY CO•vIPANY, a California corporation, as Trustee for DANK OF APIERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a national banking association, as Beneficiary, to secure a promissory note of even date for the sum of $2,258,000.00 and additional sums pursuant to the terms of the Deed of Trust, which was recorded on December 13, 1979, as Instrument No. 264464, Official Records of P,iversiae County, California; and IlHEr2EAS, a breach of the ubliyations for which said Deed of Trust is security has occurred in that there has been a default in the payment of the -then principal balance in the amount of S2,245,646.33 plus interest at 1 .5% In excess of BANK OF A+IERICA NATIONAL TRUST AND SAVINGS ASSOCIATIOW S Prime Rate as from tine to time in effect from April 1 , 1961 , evidenced by a demand note dated November 26, 1979 in the principal amount of $2,258,000.00 executed by JELIiIOr< DEVELOPi,1ENT CORPOr:ATIOJ, a California Corporation, and payable to the order of said Beneficiary on demand, or if no demand Is made, then -on September 30, 1981 , with interest at the aforementioned rate; and a default In the payment of the sur,r of $7,054.00 advanced by said Beneficiary for the fire insurance premium on the property covered by said Deed of Trust; and a default In failure to repay to Beneficiary the sum of $17,423.33 advanced by said Deneficiary for Lease Payments due the City of Palm Springs; and a default in the payment of interest at 1 .510' In excess of BANK OF MERICA RATIONAL TRUST AND SAVINGS ASSOCIATION'S Prime Rate as from time to time in effect on such advances, together with future advances, If any; and failure to pay taxes. NOW, THEREFORE, notice is hereby given that by reason of such default the undersigned, the owner and holder of said note and Deed of Trust, has exercised its option and has declared, and does hereby declare said indebtedness and all sums secured by said Deed of Trust immediately due and payable; and that -the undersigned elects to cause the property describud 'in the Deed of Trust above referred to, the record of which is made a part, of this notice for description of the promises, to be sold in accordance with the provisions thereof, to satisfy , said obligations. DONL, at Pasadena, California, ^iay 28, 1982. Mir', OF AI-IERIC//j{f� NATICHAL TRUST AND NOTICE OF BREACH RECORDED ON SAV•IN� ASS 'IATIUII _ JUNE 8, 1982 IN THE COUNTY OF RIVERSIDE AS INSTRUMENT NO.97624 By Doris E. �p4d — Assistant Cashier OF PALM Sp <n City of Palm Springs OgPORATE�,9 CALIFORNIA cgIIFORNvP Box 1706,92262 � 3 R20 �' „ 1rI �F'�l� Office of the Director of Transportation OCT ��oe and Operations(714)323-8163 +,r F+� June 10, 1982 71 � CERTIFIED MAIL - RETURN RECEIPT REQUESTED Mr. Harold S. Victor - As to 90% Interest 103 Mission Hills Drive Rancho Mirage, CA 92270 Mr. Henry L. Freund - As to 10% Interest 1080 Suntan Lane Palm Springs, CA 92262 Gentlemen: Reference is made to our letter of May 3, 1982, served upon you by Certified Mail on May 7, 1982, wherein we made certain demands upon you as a result of the bankruptcy court vesting the leasehold interest of Lease Agreement #1472 in you as to the respec- tive percentages shown. In our letter of May 3 , we made demand for the payment of rental for the period beginning April 12, 1982, with a proration of April rentals set out therein, together with demand for the payment of May rental . A meeting between each of you with me during the week of May 10, 1982, resulted in your requesting thirty (30) days to examine your position. Said thirty days have now expired, and rentals have not been paid for the months of April and May, and the rental for the month of June is past due. Demand is hereby made upon you for payment, in full , in the amount of $15 ,681 .60, upon receipt of this letter. In the event payment is not promptly received on or before the close of business on June 14, 1982, the City will have no choice but to proceed with all legal remedies including, but not limited to, default of the lease agreement. CITY OF PALM SPONGS Mr. Victor/Mr. Freund June 10, 1982 Page 2 You are hereby notified that you are in default, and it is the City's intent to proceed to terminate said lease agreement. S' c ely you s, i 0 Y Transportation irector ELC:mm cc: H. S. Saunders , B of A Jelinor Development Corporation ?ALAI City of Palm Springs ` `ORR°RATE° ' CALIFORNIA Cq��fORN�P Box 1786,92062 ' Office of the Director of Transportation and Operations(714)323-8163 June 10, 1982 Ms. H. S. Saunders Assistant Vice President Bank of America Newport Center Branch 1020 500 Newport Center Drive Box 2010 Newport Beach, CA 92663 Dear Susie, Attached is a copy of our letter of June loth to Messrs. Victor and Freund as successors to the Jelinor Development Corporation, and Lessees under the provisions of Lease Agreement #1472. Numbered-paragraph 7 on Page 6 of Lease Agreement #1472 provides that Lessor will not terminate the lease because of default on the part of Lessee if you, as the encumbrancer under the Trust Deed, shall cure such default or breach within ninety days after the service of written notice, as set out in Paragraph 7.1 . Please consider this as notice and demand for payment of rentals for the months of April , May, and June in the amount of $5,227.20 per month, or a total of $15 , 1 .60. S' erely, R B Transportation Director ELC:mm Attachment i DECLARATIONS VALUABLE — /ITTAC71. COMMERCIAL INSURANCE PROGRAM MISSION Tlll.S CFR7YFlCI TE RENEWING POLICY NUMBER i INSURANCE COMPANIES TU YOUR POL fCY POE DESIGNATION X❑ MISSION INSURANCE COMPANY 82 0P 002 24 99-2 ITEM ONE — GENERAL INFORMATION J, r 1 U 1 NAMED JELINOR DEVELOPMENT CORP. PRODUCER CURTIS — KIELEY INC. INSURED NAME 1500 SO. PALM CANYON DRIVE, # 6 P.O. DRAWER IT ADDRESS MAILING PALM SPRINGS, ADDRESS L CA. 92262 MAILING PALM SPRINGS, CA. 92263 � L 'J PRODUCER CODE 27615 — 20 Form of Named Insured's Business: ®Corporation ❑ Parmcrship ❑ Individual ❑ Other Audit Period: ❑ Quarterly ❑ Monthly ❑Semi-annual ®Annual ❑ Other Policy Period: JANUARY 3, 1982 To JANUARY 3, 1983 12:01 A.M. Standard Time at the Named Insured's Locations Named Insured's Locations: Type of Business Conducted: 255 N. EL CIELO ROAD, AIRPORT PARK PLAZA, PALM SPRINGS OFFICE COMPLEX 2• PHASE II OF ABOVE LOCATION 3. I i, ITEM TWO—SCHEDULE OF POLICY SECTIONS The insurance under this policy is provided by the sections shown as included in the schedule below. Refer to each of these included sections I for a complete description of the actual coverages, limits, terms and conditions provided. INCLUDED PREMIUM (SHOWN BY THE ENH RY OF "INCLUDED"NEXT SECTION NAME TO THE NAME OF THE SECTION) INCLUDED INCLUDED Property Insurance Section I INCLUDED INCLUDED General Liability Insurance Section II NOT COVERED NOT COVERED Crime Insurance Section I I I NOT COVERED NOT COVERED Inland Marine Insurance Section IV INCLUDED INCLUDED Automobile Insurance Section V $ 15,603. TOTAL ADVANCE PREMIUM Of- THIS RENEWING CERTIFICATE ITEM THREE — INFORMATION CONCERNING ADDITIONAL INTERESTS Name and Address of All Mortgagees and Additional Interests: Code* Applicable to Section: I. BANK OF AMERICA, NTSA 500 NEWPORT CENTER DR. , NEWPORT BEACH, CA. A I 2. FACILITIES LEASING CO. , 20-825 CURRIER RD. , WALNUT, CA. A I 3. CITY OF PALM SPRINGS. P.O. BOX 1786 PALM SPRINGS CA. D II i *Code: A= Mortgagee_-- B= Loss Payee C=Chattel D = Additional Insured E = Other --- - - MARCH 12 1982 ORANGE CA. �� __� SL/ef Countersignature: Date ' At ' Authorized Representative IN CONSIDERATION OF PAYMENT OF THE PREMIUM SHOWN ABOVE, the above numb red policy is renewed for a period of ONE YEAR. This Certificate is subject to all the terms, conditions, forms and endorsements attached to the policy or to this Certificate. IN WITNESS WHEREOF, this Company has executed and attested these presents, but this Certificate shall not be valid unless countersigned by a duly authorized representative of this Company. Secretary President P1008OF ORIGINAL In pm GOWAL L1,A .YJLf 't it N AS W:II:r'A N C! jV H � Cal POLICY NO. CIP 002 24 99-2 INSURANCE COMPANIES This GENERAL LIABILITY INSURANCE section Is self-contained. None of the other sections (except the DECLARATIONS and the GENERAL PROVISIONS) of the policy not any endorsement contained in any such section apply to this GENERAL LIABILITY IN- SURANCE SECTION. None of the provisions of this GENERAL LIABILITY INSURANCE section nor any endorsement contained in this section apply to any other section of this policy. This section provides only those coverages for which a charge or the word "included" is shown In the premium column below. LIMITS OF LIABILITY COVERAGES PREMIUM EACH OCCURRENCE AGGREGATE COMPREHENSIVE GENERAL LIABILITY INS ��%�� (Bodily Injury and Property Damage Liability /j PER L10021P INCL. Insurance) CONTRACTUAL LIABILITY INSURANCE (Contractual Bodily Injury and Contractual Property r� /� PER L10021P INCL. Damage Liability Insurance) Premises EACH PERSON EACH ACCIDENT Medical Payments Premises and Operations 1,000. — � INCL. Insurance Elevators N/A N/A //� / N/A AGGREGATE INSURED'S Personal Injury Liability Insurance PARTICIPATION 500,000. 500,000. NIL % INCL. Storekeeper's Liability See Coverage Part for Coverages and Limits of Liability Fire Damage Legal Liability See Endorsement for Limits of Liability INCL. BROAD FORM COMPREHENSIVE SEE ENDORSEMENT FOR GENERAL LIABILITY LIMITS OF LIABILITY INCL. FORMS AND ENDORSEMENTS CONTAINED IN THIS SECTION AT ITS INCEPTION: L10006FA(4/81), MP9991(7/77), C222(7/76) , L10021F(9/79) t"OTAL ADVANCE INCL. PREMIUM P1 000sr- ORIGINAL te'7sl OXX MISSION INSURANCE COMPANY El MISSION INSURANCE COMPANIES I _ — — I Attached to and Forming Part of Policy No: Named Insured (Regmrad only when this schedule is issued subsequent to the effective date of the policy): I POF DESIGNATION 1 82 CIP 002 24 99-2 { SINGLE LIMIT OF LIABILITY ENDORSEMENT 1. It is agreed that the limits of liability in the General Liability Insurance Section are amended to read as i follows: COMPREHENSIVE GENERAL LIABILITY CONTRACTUAL LIABILITY BODILY INJURY AND PROPERTY DAMAGE LIABILITY COMBINED A i $ 500,000. EACH OCCURRENCE $ 500,000. AGGREGATE (APPLIES TO COMPREHENSIVE LIA- BILITY AND CONTRACTUAL LIABILITY) 2. It is further agreed that the words "Single Limit of Liability Endorsement" are substituted for the word "Declarations" wherever the latter appears in the "Limits of Liability" of the applicable coverage part. i I I I t Nothing herein contained shall be held to vary, after, waive or extend any of the terms, conditions, or limitations of the policy to which this endorsement is attached other than as above stated: THIS ENDORSEMENT EFFECTIVE from and after the 3RD _day of JANUARY 19 82 at12:01AM I SECRETARY PRESIDENT 1 ORANGE CA. 12TH C 8 ORIGINAL Countersigned at r his day of �9 -_End No. Authorized Representative 1_10021F (9-79) 0 0 NOTICE TO INSURED OF INTENT TO CANCEL INSURANCE POLICY Date ruT5r), 19 81 * JeI1.nor Development Corp. * 255 1do, El Cielo load Palrn Springs, Ca. 92262 ' This is to advise that the premium on the following policy/s is d1PP1T, t •24 99 1. 82 MIP 030 03 81 N 855148E 82 UrC1 13883 B The premium balance past due is : $ in 9g4 . 110 The insurance company has advised us that unless payment is received within the next 10 days after receipt of this notice they intend to send out a legal cancellation notice , We strongly urge that you take immediate action on this delinquent balance. If there is any problem please contact our office immediately. Very truly yours , Curtis-Kieley, Inc . CC : Bank of America Facilities Leasing Co. City of Palm Springs✓" By: Once we have notified the company, (that hey will NOT reinstate these policies his time. Therefore, it is imperative the premiums be paid before we dootify the Compan . INC. 600 E. Tahquitz-McCallum Way Palm Springs , California ( 714) 325-5081 JUNE 26, 1981 ,I REINSTATEMENT NOTICE* R MISSION INSURANCE COMPANY ffA) ❑ HOLLAND-AMERICA INSURANCE COMPANY ❑ MISSION NATIONAL INSURANCE COMPANY JELINOR DEVELOPMENT CORP. 1500 SO. PALM CANYON DRIVE #6 PALM SPRINGS, CA. 92262 Re: Policy No. CIP0022499-1 We wish to inform you that your- 00"e1ERCI L- INSURANCE — - - ----___Policy Nn_ CTPnnP?4gq_i period —1,/_2/A1 to 1/3/82 has been reinstated as of 6126/81 and placed in full force and effect. You may, therefore disregard our cancel- lation notice dated /15/31 Yours vVry truly,/ "✓�/ CITY OP .PALM SPRINGS C/O PALM SPRINGS CITY CLERK Underwriting Dept. Receiver) P.O. BOX 1786 PALM SPRINGS, CA. 92263 SUN 29 lbb i 0 0 INSTRUCTIONS: Send original to Named Insured(s), duplicate to Mortgagee, triplicate to Agent, and last copy to Home Office. Get Past 0 2 8 d" receipt stamp on Branch Office copy. 11 NOTICE OF CANCELLATION OF INSURANCE POLICY MISSION INSURANCE COMPANY REASON FOR CANCELLATION: NON—PAY INSURER._.........._.........---"---...-----'-.....__......._.........._...........................r m nsouaece cow,......___._......... ......_. ..__.. ._ TO ALL INSURED(S), MORTGAGEES, AND LOSS PAYEES NAMED IN THE POLICY DESCRIBED BELOW: TAKE NOTICE THAT THE SAID POLICY IN ITS ENTIRETY,INCLUDING ANY MORTGAGEE OR LOSS PAYABLE CLAUSE, IS HEREBY CANCELLED AS TO ALL INTERESTS INSURED. The effective date of cancellation shall be the cancellation date shown below, at the same hour indicated in the policy as the effective hour. As to any mortgagee or loss payee, who by express provision of the policy is entitled to ten days notice of cancellation, the effective date of cancellation shall be ten days after service of this notice. Excess of paid premium above the pro rats.premium for the expired time, if any, and if not tendered herewith, will be refunded on demand. Demand is hereby made for return of the policy,and for payment of earned premium if not already paid.** **If the premium on the below numbered policy is made pay- r 1 able on m Annual Installment 9asis and default has beep Named made in the payment of any installment, refund of prem.um will he made only upon the basin stipulated m the policy ., Insured(s) JELINOR DEVELOPMENT CORP. endorsement attached thereto,instead of on a pro rat&basis. 1500 S. PALM CANYON DRIVE # 6 L PALM SPRINGS, CA. 92662 Policy No be' Cancellati n Date—__. Dale of Not,., and %I b." _ CIPO022T+44_1l -- `- 6/2681 1 i- 6/15/81 r � Agent CURTIS—KLELEY, INC. Agents'Code P.O. BOX TT Number PALM SPRINGS, CA. 92263 --_..2Z615-------__---- L r Mortgagee CITY OF PALM SPRINGS , Y y FOR'TH$, SURF or Loss c/o PALM SPRINGS CITY CLERK G' ' 'SAYRE i 785D Payee P.O. BOX 1786 x or Other L PALM SPRINGS, CA. 92263 Interested Parties By_..--....._.......................................thorized.Representati._...-...-....... Authorised Representative 585016N -_ - - 13u313e (6 79) RECEIVE JUN x IIII II _ln - 1 Y e+I II :cl a <._ - r•.�:e'I r I I GIIII I IT: I Y,_: A_ :Ilii lil �!9 -l�7, 'Y_:-i - DAML AND ADDRESS 01= AGENTY -- - - - - _-- -- --- -I CURTIS- KIELEY, INC . "PALM SPRINGS' OLDEST INSURANCE AGENCY" P.O. DRAWER TT LETTERONAPA Y LETTER -�.PALM SPRINGS, CALIFORNIA 92263 111ISSICJN INSURANCE CO. -- �---- - (714) 320.4281 LL1MEAN° Fe NAME ADD ADDRESS OF INSURED -- Cf1MPANY ( II JELINOR. DEVELOPi�NT CORa, P _ 255 N. El Cielo Rd. i ToMPANv R-h Airport Park Plaza LETTER lP Palm Springs, Ca. 92262 COMPANY I` LETTER l hrc is to celih� that policies o(m=,urnca fisted belo^.have been Issued to the insured ne.med above and s,�li,fo.ce at this tuna AbUoitiFstandnlg zny repuiremen t,term or condltlon of a.,y c.1 imal a oWei documen,wlch respect to u+hich this:en1'ncaCe may be Sued or way Irnomp,the insurance afforded by the pohaes described hemm Is subject to all the terms,_en_elwlons and condmons of such policie- - - cLETTERV rvPEOFINSURANCE POLICY NUMBED FOLIC, doro:Sds o+uLi_afs4uErr in L:ns,sOrtoes(aSS,➢aV) ET FTPIHAIION DATE EACH - OCCURRENCE AGORCGATE -L BODILY INJURY 8 CONIPREHENSIVE I ORIS A 1HLEy1,--01ERATION7l CIP 002 24 99 1 3 81 PROPFRTY DAMAGE A n EXPLOSION AND COI APFF HAZARD ❑ IIPI DERGROUND HAZARD PFODUCTS,,COINI'I FTL D I OPERATIONS HAZARU BODILY IPIJURY AND I� CONFRACTOAL INSURANrE PROPERTY DAMAGE U�roo $ 500 F� OROAD FORM PROPERTY COMBIPIEO I DAMAGE0 IFIDEPENDENT CONTRACTORS I PERSONAL INJUHv ODIL NFRSOILI INJURY b ,.cFu�.^_'; .JV_C P �IN JURY , - -- (EACH PERSON) " LI gnMPREHEIISP4 FOR4q BUDII Y III H EII OWNED (EACH ACCIDENT) LJ AIRED PRTPFRTY DAMIACF ,r GOOICI INJURY-ND CE )� CI NON.O WIVCD � PROPEP FV DAFIACE GIIJIBINrD � .f— Pei_,:sec. `tr_'9: 9•,: � — - -I � -- e0011 Y INJURY ANO li 1 UIVI H�L U1 FORrvi A PROPFRTY DIIM„c.1 A 1.,000,0�0`0 e-cessl sl] on IF, IITaI UN1BaELLA M355148 1 3 81 1 IORM -- - - COAI BIPED L TOR': A 1. 15 81 WC1 138 83A 1 1 3 81 1 - -�D25CRIPIIOPI OF OPERATIONS/LOCATIONS/VEHICLES - premises El Cielo Rd. off Tahquitz Plc Callum Way, Palm Springs, Ca. �w SDJ111�4uoCu: Should, duy_g( the above described policies be cancelled before the eCplration dale thercoi,the issuing colm� .; •Firl Wdll'eltdeavoI to mad __-J.0_ days written notice to the below named certificate holder, but failure to "tTiail such notice shall Impose no obligation or llablhly otany kind upon the company fij" . NAME AND ADDRESSOF CERTIFICATE HOLDER of PalmSprings DAIS lssueD 7 1.5 8Q c/o Palen. Springs City Cleric j Pox 1786 R� Palm Springs, Ca. 92263 Aunior+¢ED REPR;- �Tnr1vE ACORD 25(1-79) NAMED CERTIFICATE OF INSURANCE KAI INSURED • .IELINOR DEVELOPMENT CORP. ' 1500 S. PALM CANYON DR. , #6 MISSION ' PALM SPRINGS, CA. 92262 INSURANCE COMPANIES ISSUED BY a Mission Insurance Company ❑ Holland-America Insurance Company ❑ Mission National Insurance Company CERTIFICATE ISSUED TO • CITY OF PALM SPRINGS ' ° P.O. BOX 1786 ° ' PALM SPRINGS, CA. 92263 ' The Company indicated above has issued coverage effective as of the dates and for the periods and limits specified below. This certificate or verification of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term,or condition of any contract or other document with respect to which this certificate or verification of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms,exclusions and condi- tions of such policies. POLICY Limits of Liability in Thousands (000) TYPE OF INSURANCE POLICY NUMBER EXPIRATION DATE EACH OCCURRENCE AGGREGATE GENERAL LIABILITY ® Comprehensive Form BODILY INJURY $ $ © Premises—Operations ❑ Explosion and Collapse PROPERTY DAMAGE $ $ Hazard ❑ Underground Hazard ® Products/Completed Operations Hazard ❑ BODILY INJURY A Contractual Insurance CIP 002-24-99 1-3-81 E ❑ Broad Form Property PROPERTY DAMAGE $ 500 $ 500 Damage COMBINED ❑ Independent Contractors ❑ Personal Injury N Other BFCGL PERSONAL INJURY $ AUTOMOBILE LIABILITY (ODIIH PERSON] $ ❑ Comprehensive Form El owned BODILY INJURY $ (EACH OCCURRENCE) ❑ Hired PROPERTY DAMAGE $ IN Non-owned CIP 002-24-99 1-31-81 BODILY INJURY AND ❑ Other PROPERTY DAMAGE $ 500 COMBINED EXCESS LIABILITY BODILY INJURY AND ❑ Umbrella Form PROPERTY DAMAGE $ $ ❑ Other than Umbrella Form COMBINED WO R ICE RS'COM P E N- STATUTORY SATION AND EMPLOYERS' LIABILITY $ (Each Accident) OTHER DESCRIPTION AND LOCATION OF OPERATIONS LAND LOCATED AT EL CIELO ROAD, OFF AT TAHQUITZ—MCCALLUM WAY, PALM SPRINGS, CA. Cancellation: Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will endeavor to mail ten (10) days written notice to the above named certificate holder, but failure to mail such notice shall impose no obliga- tion or liability of any kind upon the company. Issued this 1ST day of FEBRUARY 19 80 / Producer CURTIS—ILIELEY, INC. By Authorized Representative,' Z10007N (1/79) G109 I ) (Ed.7-66) This endorsement forms a part of the policy to which attached,effective on the inception date of the policy unless otherwise stated herein (The following information is required only when this endorsement is issued subsequent to preparation of policy.) Endorsement effective 1-3-80 Policy No CIP 002-24-99 Endorsement No. 1 Named Insured JELINOR DEVELOPMENT CORP. Additional Premium$ INCL' Countersigned by / (Authonzel Representative) / / This endorsement modifies such insurance as is afforded by the provisions of the policy relating l Io the following: COMPREHENSIVE GENERAL LIABILITY INSURANCE MANUFACTURERS AND CONTRACTORS LIABILITY INSURANCE OWNERS, LANDLORDS AND TENANTS LIABILITY INSURANCE SMP LIABILITY INSURANCE STOREKEEPERS INSURANCE ADDITIONAL INSURED (Premises Leased to the Named Insured) It is agreed that the 'Persons Insured" provision is amended to include as an insured the person or organization designated below, but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises designated below leased to the named insured,and subject to the following additional exclusions: The insurance does not apply: 1. to any occurrence which takes place after the named insured ceases to be a tenant in said premises; 2. to structural alterations, new construction or demolition operations performed by or on behalf of the person or organization designated below. SCHEDULE Annual Premiums Bodily Property Designation of Premises Name of Person or Organization Injury Damage (Part Leased to Named Insured) (Additional Insured) Liability Liability LAND LOCATED AT EL CITY OF PALM SPRINGS INCL. INCL. CIELO ROAD, OFF AT P.O. BOX 1786 TARQUITZ-MCCALLUM WAX PALM SPRINGS, CA. 92263 PALM SPRINGS, CA. sd/jb 2-1-80 G109 (Ed.7-66) Endorsement No. OBP Applicable to par t(s): 1 O 4 CHANGE ENDORSENIENT ❑ S- t ❑ 7 This endoi semen[forms a part of the policy num he red hel ow' Eff''- date company PoBcy number 1-3-80 _1_ MkS31M-MS-U ANGE C9--_ CIP number l i `coin i To I'onn nrn.heip and ud�iiun Bats -1 _ 1 1-3-80 I 1-3-81 Ino red's namo and mailing address Authn m ozad Flopresentanve's name and ailing address JELINOR DEVELOPMENT CORP. f 1500 S. PALM CANYON DR., #6 PALM SPRINGS, CA. 92262 -------------� ---- -- —�— SIGNAT I.1E-. e/ --- POLICY coiANOES ADDING ADDITIONAL INSURED IN FAVOR OF THE CITY OF PALM SPRINGS PER ATTACHED G109. I I I I I I - PR NO CHANGE Addrcional Fr2mlUnl $ —_-- Rrlurn Fremiuhn $ -- — rrar.;lu-, C�!z :1t:''wait ❑ Nothing herein contained shall be held to vary, ,naive, alter, or extend any of the terms,conditions,agreements or declarations o; the policy, ether thon as herein stated. This endorsement shall not be hinding unless countefsigned by a duly authorized rapresentabve,of the company;Provided that if this endorse- ment takes effect as of the effective date of the policy and,at issue of said policy, forms a part thereof,rnunre,signature on the declarations page of said policy by a duly authorized ropresentativP of the company shell ci,nsthure valid countersignature of this endorserent. Sd/jb 2-1-80 GIP 12 IF I0/:'1) . Jelinor Developtent Corporation 1500 South Palm Canyon Drive, Suite 6 • Palm Springs, California 92262 (714) 325.3600 December 28, 1979 Mr. Edward Colby Director of Transportation City of Palm Springs Box 1786 Palm Springs, Ca 92262 Dear Ed: This letter is to inform you that Jelinor Development Corporation will start construction on Phase I of The Airport Park Plaza Office Complex, on January 8, 1980. Sincerely, JELINOR DEVELOPMENT CORP. �-" John T . Allen JTA/jgi I n [ nRESG ar AGENCY CI I �-L rl 't. ul,_ -� I I Sul t II- I 'il I I �� - I �I U,lC �rJ _ _ 16 il xi 111 r F_ _ r I I 134 ,P .1- � PRICE INSURANCE AGENCY — P, O. DIWIT..CR Y, 54 6JES`T MAIN STREET MPAIVY FIRE'I�IN°S FUND INSURntdC]'7 COMP ,NY PP,ICP HTAII 84-501 E EP NAME ANo iDDRESS OF IPISURED I - COMPANY lj JE'LINOR .DE'VPLOPMEN'T CORPOP.ATIOPI IFI'L j9 N YVES GELINAS, PRESIDENT � LOMPANY i, 1500 SOUTH PALM CANYON DRIVE, SUITE 6 pLE"EY PALi,'I SPRINGS, CALIFORNJIA 92262 COMPANY ADD°L N1'KLPD INSURED: CITY OF' PALM SPRINGS; 1 ETTER — -- This is to certify that policies of InsHG�'Lcel steed elow have been Issued to [lie Insured named above and are in force at this lime � GOMPANY IVPLOFIIVSURANCE POLICY NUMBER POLI CV EACH LErrER F%PIRAIIDN DATE OCCURHCpICC AGGREGATE GEItl EG:r11L fL0.4SiLlTiV p eoDlLV lwurav x s A 1>n COMPRCHFNSIVC FORM �^-2�j3 80 30 ❑PREMISFS—OPERATIONS PROPERTY UAMAGL S ❑ EXPLOSION AND LOLLAPSF ❑ HAZARD UNDERGROUND IIPZARD ❑ PRODUCTS/COMPLCTFD OPERATIONS HAZARD BODILY INJURY AND ❑CONTRACTUAL INSURANCE PROPERTY DAM,,GE n ItOOO, 00e00 -❑ BROAD FORM PROPERTY COMBINED DAMAGE ❑ IIVDEPENDINI Conn RA11111 ❑ PERSONAL INJURY PEF60NAL INJURY $ ,L.OJ"y lD�ll4r E 'r_G�1uVf.O:r DODILV INJURY � � (EACH PERSON, ❑� COMPREI IELbIVE FORM BODILY INJURY 1 ❑_ OWNCU (EACH OCCURRFNLb ❑ HIKED PROPERIY DAMAGE � BODILY IN IURY AND� NON-OWNFp PROPER,"YDAMAOE Y COMBINED BODILY INJURY AND j ❑ UMBRELLA FORM F 4 PROPELPY DAMAGE ❑ OTHER THAN r✓BRELLA COMBINED FARM VIPv1�[eC:E 'C'., 41i2 V"foM'.dt3uiald �� STATUTORY eaOcl __ _- __- — - - - IeInV.E'P_AJ'VIzV?'v ��.'i T_ I i n Lnulal,cmLrvni III I OEoGRIPTION Of OPERATIONS/LO6AilONSNEHILLLS �i 11 6';a°Pce00Ed,Iv�M� Should any of the above des6dbed policies be cancelled before the expirac or date thereof. the Issuing com- pany will endeavor to mall .— days mutter notice io the below named certificate holder, but failure to mail such notice shall Impose no obligation or,lability of any i(lno upon the company NAMCANDADDRFSSOFCERTFICAILHOLDER RPRIL 18,, '1979 - DATE IS JCU _ �I CITY OF PALM SPP,IDIGS �PALM SPRINGS, CiMIF021NIA 92262 fly h SNFlEAUTqORIZEDR I A. led. NII LLS PIPE'htANIS' ;`UNt) INSUR4LNC'E COhTPnNy :ACORD 25 (rn 1-1/) P.0 DRAWER 54 WEST MAIN PRICE, UTAH 84501 AGENTS - BROKERS-SURPLUS LINE BROKERS 801-637-3351 April 18, 1979 Mr. John T. Allen Jelinor Development Corp. 1500 South Palm Canyon Drive,, Suite 6 Palm Springs, California 92262 Re: LA-283 88 30 Insurance Cert. Dear Mr. Allen: Please find enclosed a certificate of insurance issued by our office through Fireman's Fund. Insurance Company, San Francisco, California. Note, if you will, that the policy is being issued for a period of one year. The reason for this is because property coverages will be effectuated as well as other casualty risks in the future, A and at that time a comprehensive portfolio policy will be issued incorporating all the exposures. At present your risk is that of v=scant land. Upon commencement of your general contractor's work, an owner's protective liability clas- sification will replace the vacant land class. At the appropriate time coverages for the building(s) in course of construction will become effective. Automobiles, if any, +:ill be included if need be as well as any other exposure that may arise out of your operation, such as Owner's Landlords F, Tenants liability including parking areas, and property coverages with inflation-guard protection. Per your instructions, the city of Palm Springs, California, is being shown on the policy as an "additional named insured" with all it's insurable interests protected. In event you need anything further, please do not hesitate to call me. For your information, I am duly licensed as a non-resident broker (insurance) in the State of Calif. Yours truly, ^� A. W. Nikas AWN:jr Encl. 4 YOUR/ independent InsuranceAGBIVT SERVES YOU FIRST JELINOR DEVELOPMENT CORPORATION 1500 South Palm Canyon Drive, Suite 6 Palm Springs, California 92262 (714) 325-3600 April 10, 1979 City of Palm Springs Post Office Box 1786 Palm Springs, CA 92263 Attention: Mr. Edward L. Colby Gentlemen: Re: Lease Agreement #1472 Pursuant to the provisions of Article VII of our Lease Agree- ment #1472, the Jelinor Development Corporation hereby elects to satisfy the requirement for Performance Bond through the creation of a continuing cash escrow with the United California Bank at this time. This method is being adopted in order to comply quickly with the contractual requirements for the Performance Bond. Jelinor Development Corporation reserves the right, at some time in the future, to terminate this continuing cash escrow, and to re- place it, simultaneously, with a Performance Bond, as required by Article VII. Sincerely yours, JELINOR DEVELOPMENT CORPORATION JEAN-YVES GELINAS, President JYG:JA:mm TRUST AGREEMENT The undersigned, being a financial institution which is subject to regulation by the State of California or by the Federal Government, hereby pledges that monies to the extent of Fifty Thousand Dollars ($50,000.00) are on deposit by JELINOR DEVELOPMENT CORPORATION, hereinafter referred to as Lessee for the purpose of securing Lessee's performance of all the terms and conditions of that certain Agreement #1472 dated January 5, 1979 by and between Lessee and the City of Palm Springs, a municipal corporation, a true copy of which is hereto attached and incorpo- rated herein by reference, and that said funds are trust funds for the sole purpose of guaranteeing the payment thereof to the City of Palm Springs or such portion thereof as said City may request for the completion of the terms and conditions set forth in said Agreement in event of default by Lessee. The undersigned agrees that, upon receipt of written notice of default by Lessee in Lessee's performance of the terms and conditions of said Agreement signed by the City Manager of said City, the undersigned shall pay upon presentation and surrender of this instrument, duly endorsed, at maturity or prior to maturity pursuant to the provisions of Regulation Q, Section 217.4 (D) of the Board of Governors of the Federal Reserve System said funds, or such amount thereof as shall be set forth in said notice, to the City of Palm Springs. The undersigned further agrees that it shall hold said funds on deposit as trust funds for the uses and purposes herein set forth, or such amount as may remain, until such time as it receives written notice signed by the City Manager of said City to the effect that said Agreement has been fully performed and authorizing the release of said funds to the depositor. By execution and delivery of this Instrument to the City of Palm Springs, the undersigned is relieved of any and all liability to Lessee except as herein specifically set forth. Dated at Palm Springs , California, this 13 d, day of 4"/ 1979. BY REED A. MOHNtrY I Vice President & NlanageF The undersigned, being the Lessee referred to in the foregoing Trust Agreement, hereby agrees to all the terms and conditions therein set forth and releases the financial institution executing said Trust Agreement from all liability except as therein specifically set forth. Dated at Palm Springs, California, this /3�� day of UaP ,1 1979. JELINOR DEVELOPMENT CORPORATION BY I JEAN-YVES GE.L NAS, President Approved: (/ CITY MANAGER City of Palm Springs N .' Approved as to form: Approv as to conten �. y C y Attorney ransportatio Dire for C`fty of Palm Springs City of Pal Spri gs Page 2 of 2 194E CA 11 To 74) Agent of Corporation) j.■TRLE INSURANCE _WAND TRUST STATE OF CALIFORNIA �l A,1m9 ror,wmr CpllNITYOF n4irprside !j SS. 0n_Apr11 13, 1979-- before me, the undersigned, a Notary Public in and for said state,personally appeared_ Eteed A. Mohnev , known to me to be the agent of the corporation that executed the within instrument,known to me to be the person w a'• who executed the within instrument on behalf of the cot- wworc�Po^Leoorocna«r,co.,.y mnncmrwva mporation therein named, and acknowledged to me that such of PICIAL sent f i corporation executed the within instrument pursuant to its . ;t 6EVERLY ANN SMITH e il'OT,4Rv rL'dUC Ct,_IFCRN'IA by-laws or a resolution of its board of directors. PRUICIPAL os'`ce IN COUNry WITNESS my hand and official seal. My Commission Expires July 20, 1930 z o ws«;n>�,oc>coHo�aaoo,>4�c.wa+4, .44m4 Signature�e. (this area for official notarial seal) STATE OF CALIFORNIA — COUNTY OF---UT SS. a_ On—April 13j 1979 __ icfine me,, _lo the undia ,I,ned, a Notary Public in and for �.a,d Collim and SLaw, SAFECO personally appeared .Jean^Yye5 C'xellnas FOR known to me m he dim _President, NOTARY SEAL OR STAMP r- -.—/a��r�t,{r� of the corpoation that e,eoulcd the HJ'9@'989GVfrJry vt,>eGOGOv.>vbG;�.p.:vo.:u _-. V o within Instrument, known toif of to 6e the atioll s who curled, the C` �,.�,,: . OFFICIAL SEAL within In=trument on behalf of the rolporation therohr named, and � r I s a f` rsv-,.� �VERi ( ANN SMITH�d-' acknowledged to me that sue, corporation ececutrd the within p Yb_d*r!y ' p instrument pursuant to its by-laws or a resolution of its hoard of ., dlrCCt015. / PIOT/ll2'r PfIt3LIC-GA_IFURNfA V �t PRINCIPAL OFFICE tN _ n� R:VeriEIOE C(:UPfrV My Comnisslon Expires July 20, 19I1L) ey� //�nI 4 OGSC:rL0.aLObGh AibaeS ,r Ai-L.,p.+ U Signatur2, Y%.r'rs Beve m rly Ann Sith U } r 5 r I J611t6t Dev, Carp 1e2so 9 acres of Airport Land AGREEMENT #1472(Orig 1-5-79) Res 12870, 1-3-79 LEASE AGREEMENT — -- - THIS AGREEMENT, made and entered into this 5th day of January 1979, by and between the CITY OF PALM SPRINGS, CALIFORNIA, a Municipal Corporation, hereinafter sometimes called CITY or LESSOR, and the JELINOR DEVELOPMENT CORPORATION, a California Corporation, hereinafter sometimes called Lessee. RECITALS A. The City owns the property described in detail in EXHIBIT "A" , attached hereto and made a part hereof, located in the City of Palm Springs, County of Riverside., State of California; and B. The City wishes to enter into the lease of said property in the interest of furthering and carrying out its public purpose; and C . Lessee proposes to make certain improvements on the land leased and/or demised hereunder which improvements con- template that the Lessee shall construct upon the leased premises an airport related office development and related facilities and improvements and to thereafter operate the same. NO:•l, THEREFORE, in consideration of the rents, covenants, and agreements contained herein and other valuable considerations, the City hereby rents, leases, and demises to Lessee and Lessee hires, leases and takes from Lessor on the terms and conditions hereinafter set .f.orL-h, a tract of land in the City OF Palm Springs, County of Riverside, State of California, consisting of 9 acres, more or less, more particularly described in description attached hereto as EXHIBIT "A" and made a part hereof for all purposes . ARTICLE I - TERM The term of this agreement shall be for fifty (50) years beginning on January 5 '1979axid ending on January 4 2029 . ARTICLE II - IMPROVEMENTS/DESCRIPTION OF CONCESSION Lessor hereby grants Lessee the right, privilege and license to construct and thereafter operate an airport related office complex in accordance with plans and specifi- cations approved by the City. Lessee shall on the demised premises have the right to and shall rent office spaces or/and other facilities of a similar nature and may provide other services incidental to that which are normally provided by an airport related o=fice complex. It is specifically understood by Lessee that the rights and privileges granted herein are granted for purposes of operating a primarily airport use-related office complex. In order to maintain the character of the development as airport related, it is specifically understood and agreed to by the Lessee that Lessee shall, to the fullest extent possible, rent office space to those businesses, individuals, or corporations whose activities are related to and carried out or otherwise associated with the operations or associated operations of the Palm Springs Municipal Airport . Uses which ;hall be construed to be airport related shall include, but not be limited to, car rental offices , freight delivery offices , airport related medical offices, airlines offices, and other operations so associated. Nothing contained herein 2 , shall however prevent Lessee from doing business Or renting Office space as allo':Ted herein to those individuals, businesses, or corporations not specifically airport related. Lessor reserves the right, ho.•:ever, to demand from Lessee reasonable document-at-ion or evidence which shall verify that Lessee has to the great - extent possible attempted to adhere to the intent of this lease herelnabove stated. ARTICLE III - CONSTRUCTION OF I=d?ROVEMEMTS BY LESSEE A. General Specifications - Lessee shall without cost to Lessor an: :;i^in the time periods subscribed herein commence and co-.olete construction of a .phased airport related office complex. The complex shall be of an attractive nodern type design co-_oatible with the Palm Springs Airport Terminal Building . Lessee shall provide adequate automobile parking, spaces as required by the standards of the City of Palm Sorincs. Subnission of Plans and Specifications - Lessee has sub-:itted to the Palm Springs Airport Commission a site- use plan depicting the proposed office complex. In addition, Lessee' s architect has provided the Airport Commission architectural renderings sufficient to allow the Airport Commission to determine the character of the improvements to be constructed on the demised premises . The Airport Con-mission has aoproved the proposed office development as described in said plans. Within one hundred and eighty (180) days after the C=execu t, Lessee shall submit to the City for an ,_-oval final plans and specifications for the first and third r,hase of the airport related office complex , includi p,t support facilities, pa rllfrog facilities, phasing plan, and landscaping plans together with its preliminary 3 . est Gate of the construction costs of said facility as well as the schedule for -i -s construction hereinafter provided. Lessee ' s plans and specifications for the buildings shall be subject to approval by the City. Such approval shall not be unreasonably withheld. It is specifically understood and agreed by Lessee, however, that the improvements as allowed hereinabove shall be an office complex to be constructed in three phases. The final plans and specifications for the second phase shall be sub-fitted for City approval within eighteen (18) months of the execution of this lease. B. Encu_nbrance 1 . This lease, or any right to or interest in, or any of the improvements on the leased premises, may be enc.-;;ibered with the written approval of the City, No such encumbrance or any addition thereto or extension thereof shall be valid without said approval provided, however, the Citv shall consent in suiting to any encumbrance that does not exceed eighty-five percent (85%) of the value of the leasehold interest and improvements placed thereon . 2 . An encumbrance must be confined to the leasehold interest of Tessee or the subleasehold interest of a sublessee and shall not jeopardize in any way the Lessor' s interest in the land. Lessee agrees to furnish as requested any financial statements or analyses pertinent to the encumbrance that the City may deem necessary to justifv the amount, purpose and terms of said encumbrance. 3 . In the even" of default by the Lessee of the terns o- an approved encl:-trance, the encumbrancer may exercise any rights provided in such approved encumbrance, Provided that before any sale of the leasehold, whether by poc;er of sale or foreclosure, the encumbrancer shrill give to the Cit,- notice of the same character and duration as 4 . is rec1.ired to be given to Lessee by such encumbrancer and/or the la::s of the St=ite of California . Any notice of default shall c0' plS W the provisions of Section 2924 (c) of the Civil Code of the State of California. c . TIE any sale under the approved encumbrance occurs, whether by poc;er o- sale or foreclosure, the purchaser at such sale shall succeed to all of the rights, title and interest of the Lessee in the leasehold estate covered by said approved enc L',ibrance. 1t is ftirther agreed that, if the purchaser at such sale is the encu-.brancer, the encumbrancer may sell and assign the leasehold interest -without any further consent provided, trat the assignee shall agree in writing to be bound by all the terms and conditions of this lease.. If the encum- brancer is the purchaser, it shall be required to perform this lease only so long as it retains title thereto . If a sale under the approved encumbrance occurs, and the purchaser_ is a p_=._ty other than = e encumbrancer , said purchaser, as successor in interest to the Lessee, shall be bound by all the terms and conditions of this Lease- S . If notice of such sale shall be given and the defaults or any of them upon which such notice of sale is based shall then. continue, Lessor shall have the right to correct such defaults at any tine prior to the date of sale or foreclosure, and to ter-:inate such leasehold upon paying to the en-CuMbrancer the balance of the encumbrance, as hereinafter defined . 6 . "Balance of encu-.brance" shall mean the amount of principal re_;aininc unpaid on a note secured by a trust deed or mortgage of an interest in this lease; provided that to such principal shall he added accrued interest thereon past due an,,! --xD uses incurroj by the lender in connection with -Foreclosure on such trust deed or morLgacje and note tocJether 5 . a;ith all necessary expenditures Dade by the lender to maintain said lease-old ir_terest valid and in good standing during the process e= Foreclosure , 1TiCailO'ang but not limited to fire- insurance pre_ai, s, title insurance expenses, recording fees, appraisal Sees, attorneys ' fees, credit reports and any 'tax reporting services and additional expenditures paid by the lender on additions, bettermen" and rehabilitation of improver,=nts on the property encumbered pursuant to plans approved b- the City, 7hich consent may not be unreasonably withheld, and other expenses necessary to place the improve- ments in ... _:ceta'ale condition, such adjusted principal to be paid in cas_- or at the option of the City amortized over the term and in accordance with the schedule set forth in said note, 'the interest rate on the unpaid balance thereto to be as set forth in said note. 7. Lessor agrees that it will not terminate this lease because of any,• de=a 1t or breach hereunder on the part of Lessee i- the Encul:iorancer under the trust deed., within ninety (90) days after service of written notice on the Encumbrancer by Lessor of its intention to terminate this lease for such default or bread'_, shall: 7 .1 Cure such default or breach if the same can be cured by the payment or expenditure of money provided to be paid under the terms of this lease; provided, ho:7ever, that for the purpose of the foregoing, the En=:_-ibrancer shall not be required to pay money to cure the b�nkrup tcy or insolvency of Lessee; or 7 . 2 1= such del-cult or breach is not so curable, cause the trustee under the trust deed to commence and thereafter diligently to pursue to completion steps and proceedings _`or judicial foreclosure, the exercise of the po-:.er of sal_ under and pursuant to the trust cleecl 6 . in the =anuer proyid2d by law, or accept. from Lessee an assignpent in 'lieu of foreclosure, and keep and perform all of the covenants and conditions of this lease requiring the payment or expenditure of phoney by Lessee until such time as said leasehold shall be sold upon foreclosure pursuant to the trust deed, he released or reconveyed thereunder , be sold upon judicial foreclosure or be transferred by deed in lieu of foreclosure . C. Construction Schedule/Default 1 . Within ninety (90) days following final City approval of the plans and specifications for the improvements , Lessee shall connence construction on Phase I of the three phases hereinbefore referred to_ Phase I shall be completed within fifteen (15) months from the date of commencement of construction. 2 . Within enty-one (21) months of final- City approval of the plans and specifications ,, Lessee shall commence construction on Phase 2 of the improvements referred to herein- above, such Phase 2 construction to be completed within fifteen (15) months thereafter . 3. Within thirty-three (33) months after_ City approval of final plans and specification for the office complex for the Plaza , Lessee shall commence construction on Phase 3 of the improvements referred to hereinabove . In any Case, Lessee is granted a maximum period of forty-five (45) months within C:'h1Ch t0 COT::D_2te construction Of all three (3) phases of improvements after final City approval of plans anO specifications, unless , at the sole determination of the Lessor, circur.stances beyond the control of the Lessee prevent said construction from being completed within said time period . In such an event, Lessee may be granted 7 . e}:tension of time in neriods to be determined at the sole discretion of the Lessor . In the event Lessor does not gran: such __-tensions, Lessee shall within forty-five (45) months from the date of final City approval of plans and specifications complete construction of all improvements- 4 . If Lessee fails to complete improvements, development, and construction within the time periods as specified =ereinabove, the Lessor may at its sole option as to each such nerio (a) Require that the guaranteed minimum, or percentage (whichever are the greater) annual rentals payable under this lease increase 1n an amount equal to 5% of the previous months rent, beginning the month following that month in which either Phases I , 1I, or III were to be completed . This increase shall remain in full force and effect from the date of its effect. (b) For each lease year that Lessee fails to complete full imsro-„e.,,ent, as required hereinabove, annual- rentals payable under this lease shall be increased in an amount equal to 20 of the then current rent, beginning the month following that month during which full development :;as to be completed. This increase shall remain in full force and effect from the date of its effect and until the contemplated improvements are completed. (c) Lessee agrees to hold Lessor harmless from and against any and all claims by mechanics, materlalmen., or suppliers, which may result from the completion of the construction, finishing, decorating, equipment, or fixt::rization . Lessee further agrees to furnish Lessor upDn completion of construction certificates of completion satisfactory to Lessor . Such certificates 8 . shall show that all cots of construction have been paid and that no liens si-all attach to the realty . (d) Prior to the commencement of construction of each imDrove7ent on the leased property, or any repair or alteration thereto, the Lessee shall give the City ten (10) days advance notice in writing of intention to begin said activity in order that non-responsibility notices may be posted and recorded as provided by State and local laws . Nothing contained herein, however, shall prevent Lessee from constructing said ir._revements prior to the time frames established hereunder. D . Title to im rove ents Title to all fixed improve- ments made to and placed upon the premises shall remain the property of the Lessee anti shall vest in the City at such time as this lease agreement is terIilinated as provided herein. Furniture, furnishings , and equipment, not including heat and air conditioning equipment, will remain the personal property of the Lessee and may be removed by Lessee upon termination of this agreement. It is specifically understood and agreed that upon such removal the Lessee shall restore the space to good useable condition, ordinary wear and tear excepted. ARTICLE IF - OBLIGATIONS OF LESSEE A. Lessee agrees that he will operate, maintain and manage the airport office par}_ and all facilities connected therewith in a first class manner in accordance with the best office part practices and comparable to other first class office parts of sock type providing similar- facilities and services during the entire term of this lease agreement , At all times Guring the letting hereunder, the 9 . Lessee shall maintain full, adequate and experienced management, all of who :, as well as Lessee ' s other employees, shall be reputable and of goon character. B. Lessee, his _pployee.s , agents or servants shall at all times comnly with the laws and regulations of the United States of America, the State of California and all applicable ordinances, codes, and regulations of the City of Palm Springs, and regulations governing the operation of the Palm Springs Municipal Airport as they now exist or as they may hereafter be lawfully amended. Violations thereof by Lessee, his agents, servants or employees, or revocation of permits or licenses required in the performance of this agreement, shall he cause for termination of this lease agreement at the option of the Lessor if not corrected after ninety (90) days written notice as hereafter provided. C. Lessee shall procure and maintain at his own expense all licenses or permits necessary to legally conduct the office park facilities and associated businesses in the City of Palm Springs . Do Lessee covenants and agrees that it will pay, when due, all taxes which may be levied against- Lessee ' property or operations under this lease, including all property, sales, use, business activities or other tar. . Lessee specifically acknowledges that the leasehold interest granted herein may be subject to possessory interest taxes . E . Lessee shall provide a complete and proper area for the adequate sanitary handling and disposal, away from the airport of all trash, garbage and other refuse caused as a result of the operation of its business . Lessee shall provide and use suitable covered metal receptacles for all garbage, trash and other refuse . It is agreed that the piling of bees , cartons, barrels, or other similar items 10 . in an unsightly or -'.nsa-.^_ - anner on or about the premises is prohioited. F. Lessee _1 bear all costs of operating the office pari. and r21c:tom;_ services and shall pay in addition to rental all other costs connected with the use of the premises, -facilities, rights and privileges granted herein_ Lessee ag-e2s, at 1 t s Cr- exp-2-tse, to cause the premises and improvements, including auto_uobile parking facilities and landscaping to be ^aintained in a first class, presentable condition consistent T71th good business practices and to assure that the building and grounds present an attractive appearance . G. Lessee will not suffer or permit to be maintained upon the outside of any improvements located on the premises any billboards or ad-vertising signs except those which have the specific prior ap_roval of the City. It is agreed, however, that Lessee may maintain on the premises, or on the outside of the o--ice parr- plaza erected on the premises ,. his name or a trade name in neatly painted, electrical or other illuminated sign or signs which conform to the Palm Springs Sign Ordinance. The size and type of any sign or signs must have the prior written approval of the City, which approval shall not be unreasonably withheld. H. Lessee will use his best efforts to restrict the use of his automobile parking facilities on the premises to .the automobiles of Lessee ' s guests, visitors, employees and suppliers . b34ICLE 11 - F.E",ITAL 1 . During the construction period contemplated under Article III hereof , Lessee shall pay the Lessor the following rental : 11 . The sum of $__2,613 . 60_ per month for the period commencing on the effective date of this lease agreement and ending at such time as the industrial park facility or a component thereof is available for rental and/or has commenced receiving rents, which period of time shall not exceed two years . i 2 . Beginning with the ' third year and continuing through the fourth and fifth years, Lessee shall pay to the Lessor a minimum annual guarantee of $ 62jH . 40 per year in equal monthly installments or 100 of the annual gross receipts, whichever is the greater. 3 . For the purpose of this agreement, "gross .receipts" means all income, including money and any other thing of value, received by or paid to Lessee or its affiliates, whether individuals, corporations, partnerships or other legal entity, or received by or paid to others for Lessee ' s or its affiliates ' use and benefit derived from business done, sales made or services rendered directly or indirectly from or on the leased premises, or derived from the subleasing, subrenting, permitting, contracting or other use of the leased premises, or any portion thereof. All income accruing from credit transactions shall be treated as "gross receipts: as of the date credit is extended. "Gross receipts" shall include any ad valorem taxes paid by other than the Lessee for the account of the Lessee and receipts from the resale of electricity, gas, telephone, and television cable service. "Gross receipts" shall not include: (1) amounts collected and paid out for a sales or excise tax imposed by a governmental authority where such tax is billed to the purchaser as a separate item; (2) credits for the exchange of goods or merchandise betwocln the htorer, , if any, of 12 . 0 Lessee or its affiliates ::here such exchange is made solely for the convenient operation of business and not for the purpose of consummating a sale previously madam` directly or indirectly from or on the leased premises; (3) the amount of any refund .,__ere the merchandise sold, or some part thereof, is ret_fnai by the purchaser and 'accepted by Lessee and its __-_liates ; and ( ^-_) income from the sale of fixtures, goodwill or the sale of improvements. 4 . The zini-^'nn guarantee as provided for above shall be paid monthly in a sup equal to one-twelfth of the annual minimum guarantee in advance on the first day of each and every month during the term of this agreement. In addition to the minimum guarantee, Lessee shall furnish to Lessor_ by March ist of each year a verifies: statement of its total gross receipts as defined above, during the preceding year. , Such statement of its gross receipts from operations during the preceding year shall be accompanied by a payment of percentage rent, if any, as provided in V 2 . above, calculated on the basis of the preceding year' s gross receipts . 5 . Lessee shall keep accurate records of the revenue from his operations . Such records shall be made available within the City of Palm Springs to authorized representatives of Lessor on request at all reasonable times . All supporting records, documents , books and accounts shall be kept and retained by Lessee for a period of not less than three (3) years . Within ninety ( 0) days after the close of each calendar year during the term of this agreement and/or option period. Lessee shall have caused an audit to be made by a certified public acc=cant, licensed in the State of California , of its annual gross rents from the operations herein authorized ann :;'_'fat rental payments which it has made to Lessor in relation thereto. Such audit shall include the detail contemplated by this agreement and such other 13 . details as Lessor may require consistent_ with e.*, is agreement. Lessee shall nave submitted to Lessor by said E,ccounLanf-_ a copy of such audit. Should such aiiOit disc:Lose a d��c epancy between the amount paid to Lessor and the amount duce as indicated by such audit, adjustment shall be wrj6t� , between the parties of the sum theretofore paid. City does not contest or otherwise challenge said suit within one (1) year of its receipt by the City, said audit report will be conclusively declared accurate and the City will be estopped to later object to said report. 6 . Minimum rentals shall be adjusted every five (5) Years based on the change in cost of living index every five years . For the purpose of 'this computation, it is agreed that the Consumer Price Index for the month of October 1978, ( 197 . 8) is the base, or 100% . The Cost of Living Index to be used is that reflected by the Consumer Price Index, all items, Los Ange- les, California (1967 = 100) published by the Bureau of Labor Statistics of the U. S. Department of Labor. If, for any reason whatsoever, there is any change in the method of calculation or formulation of said price index, or if that index shall be no longer published, then another index generally recognized as authoritative shall be substituted by agreement. In any event, the base used by any new index shall be reconciled to the 14 . 0 1967 index _ 7 . Beginning with he sixth year, Lessee shall pay to esso:r an annual rental in equal monthly installments, based upon the miPim m rent as adjusted by paragraph 6 .b.1 above, or 10% of Cross rents , whichever is the Cheater . Similar adjustments shall be effective every five (5) years thereafter beginning with the eleventh year of this agreement. ARTICLE `'I - INSURANCE 1 . Liability Insurance During the entire term of this agreement, Lessee agrees to procure and maintain public liability insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury, inching death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly pro^, any act or activities of the Lessor or Lessee, or any person_ acting for the City, or Lessee or under its control or direction ,, and also to protect against loss iron liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of the City, of Lessee, or any person acting for the City or Lessee, or under its control or direction. Such public liability and property damage insurance shall also orovide for and protect the City against incurring any legal cost in defending claims for alleged loss . Such public liability anj property damage insurance shall be maintained in full force and effect throughout the tern of the Agreement and any extension thereof in the Mllo::ing min nu.n li -:; ts• Bodily Injury $ 250 , 000 each person $ 500 , 000 each occurrence $ 500 , 000 aggregate products & completed operations 13. Property Damage $ 100, 000 each occurrence $ 250 , 000 aggregate A combined single limit policy :with aggregate .limits in the amount of One Million Dollars ($1 , 000 , 000) will be considered -auivalent to the required minimum limits. All of such insurance shall be primary insurance and shall name the City of Palm Springs as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then Lessee agrees that the minimum limits herein- above designated shall be changed accordingly upon request by the City Manager; provided, however, that the Lessee may appeal to the City Council within ten (10) days after any increase is requested and such requirement for increased coverage shall be subect to determination by the City Council . Lessee agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the .Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee ' s activities, or the activities of any person or persons for which Lessee is otherwise responsible. 2 . Worker' s Compensation Insurance The Lessee shall procure and maintain, at its sole expense, Worker 's Compensation Insurance in such amounts as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Lessee and the City against any loss , claim, or damage arising fro.�i any injuries or occupational diseases happening to any worker employed by the Lessee in the course of 16 . carrying out the within agreement. 3 . Fire & ENtendea Coverage Insurance Lessee also agrees to procure and maintain, at its sole expense, during the term of this . ,_nswant, and any extension thereof , a policy of fire, extended coverage and vandalism insurance on all permanent prc•neft:- of Lessee ' s of an insurable nature located upon the leas_? nrenises. Said policy shall be in an amount sufficient to cover at least eighty percent (80o) of the replacement costs of said property. Lessee agrees to pay the premium for such insurance and shall require that any insurance proceeds resulting from a loss under said policy are payable jointly to City and Lessee and said proceeds shall constitute a trust fund to be .reinvested in rebuilding or repairing the damaged property or said proceeds may be disposed of as specified in paragraph following, entitled "Waste, Damage or Destruction" , hereof; provided, however, that within the period during which there is in existence a mortgage upon the leasehold, then and for that period all policies of fire insurance, extended coverage and vandalism shall be made payable jointly to the mortgagee or beneficiary, the named insured, and City, and shall be disposed of jointly by the parties for the following purposes : a . As a trust fund to be retained by said mortgagee or beneficiary and applied in reduction of the debt secured by such mortgage with the excess remaining after full payment of said debt to be paid over to Lessee and City to pay for reconstruction, repair, or replacement of the damaged or destroyed improve- e_ ts in progress payments as the work :is performed . The bul nce of said proceeds shall be paid to Lessee . Pro :icied, further however, nothing herein shall prevent Lessee, at its option and with the approval of Said 17 . • i mortgagee or beneficiary, from filing a faithful performance bond in favor of said mortgagee or beneficiary and City in an amount equivalent to said insurance proceeds in lieu of surrendering said insurance proceeds to said mortgagee or beneficiary and City . b. In the event that this lease is terminated by mutual agreement and said improvements are not reconstructed, repaired, or replaced, the insurance proceeds shall be jointly retained by City and said mortgagee or beneficiary to the extent necessary to first discharge the debt secured by said mortgage or deed of trust and then to restore the premises in a neat and clean condition , said mortgagee or beneficiary shall hold the balance of said proceeds for City and Lessee as their interests may appear. Lessee agrees to increase the limits of liability when, in the opinion of the City Manger, the value of the improvements covered is increased, subject to the availability of such insurance at the increased limits; provided, however, that the Lessee may appeal to the City Council within 10 days after any increase is recuested and such requirement for increased coverage shall be subject to determination by the City Council. 4. Waste,Damage, or Destruction Lessee agrees to give notice to the City of any fire or other damage that may occur on the leased premises within ten days of such fire or damage . Lessee agrees not to com-it or suffer to be committed any waste or injury or any public or private nuisance, to keep the premises clean anA clear of refuse and obstructions, and to dispose of all garbage, trash and rubbish in a manner satsifactory to the City . If the leased premises shall be damaged by any cause .,rich puts the premises into a condition which is not decent, safe, healthy, and sanitary, Lessee 18 . agrees to nape or cause to be Dade full repair of said damage ani to restore he pre7ises to the condition which existed prior to sail Hanage, or Lessee agrees to clear and remove from the leased penises all debris resulting from said damage and reloilf the premises in accordance with plans and specifications _ _a7iously submitted to the City and approve: is writing in order to replace in kind and scope the operation. which ezistaf a=for to such damage . Lessee agrees that preliminary steps toward performing repairs, restoration, or replacement of the premises shall be commenced Sy Lessee within thirty (30) days and the required repairs, restoration, or replacement shall be completed within a reasonable time thereafter . City may determine an equitable deduction in the minima-: annual rent requirement for such period that said premises are untenable by reason of such damage. 5. A7atoDotive insurance The Lessee shall procure and maintain, at its sole expense, throughout- the term of this agreement and any extension thereof public liability and property aa_mage insurance coverage for automotive equipment, if any, with coverage li^its of not less than One Million Dollars 01, 000, 000) co bined single limit. All such insurance shall be primary insurance and shall name the City of Palm Springs as an additional insured. Lessee ' s certification that it has no automobile equipment shall satisfy this clause. 6 . Evidence of Insurance A certificate of insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City' s Bisl _.ana,e7 _ t Officer shall he submitted to the City prior to execution of this A roenent on bohalf of the City. 7 . -Notice to City, Insurance Coverage Change The terms of the insurance policy or policies issued to provide 19 . the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier, for non-payment of pre. iums or otherwise, without sixty (60) days brio-_ written notice of amendment or cancellation to the City. In the event the said insurance is cancelled, the Lessee shall, prior to the cancellation date, submit to the City Cleric new evidence of insurance in the amount heretofore established. ARTICLE VIT - BONDS A. Prior to the execution of this contract, the Lessee shall provide the City, and maintain through the life of this agree-ent, a perfor:ance bond in the amount of $50 , 000 payment of such performance bond shall be due and payable to reimburse the City for any loss sustained in the event of default or failure of the Lessee to perform as herein set forth. Alternatively, the Lessee may at his opt-on post a Certificate of Deposit, payable to the City of Palm Springs, in the amount of $50 , 000 in a bank or savings and loan association approved by the City of Palm Springs. In the event the Lessee elects to exercise this option, any interest accruing to the Certificate of Deposit shall remain the property of the Lessee. B. The Lessee shall prior to the commencement of con- struction for each phase as hereinbefore specified, provide the City with a Construction Payments Bond in an amount equal to the estimated cost of construction as approved by Lessor which shall be posted prior to the commencement of the construction of each such phase _ Payment of such Constructs.on Payments shall be due and payable to reimburse the City for any loss sustained in the event of default or failure of the Lessee to perform as hernina.bove set forth. Alternatively, 20 . the Lessee may at his option post a Certificate of Deposit payable to the City of Palm Springs in the amount equal to the estimated cost of construction in a bank or a savings and loan association approved by the City of Palm Springs . In the event the Lessee elects to exercise this option, any interest accruing to the Certificate of Deposit shall remain the property of the Lessee. C . As an alternative to furnishing the bonds in accordance with Paragraphs A and B above, Lessee may enter into a building loan agreement with an institutional lender_ , L:hich building loan agreement shall be subject to the approval of the City. Prior to such approval , Lessee shall deposit with the lending institution the difference between the amount of the loan and the projected cost of the improveme=at. RR'iICL VIII - TERMINATION BY LESSEE In addition to all other remedies available to the Lessee, this agreement shall be subject to cancellation by the Lessee should any one or more of the following events occur: A. The issuance by any court of competent jurisdiction of a permanent injuction in any way preventing the use of .the leased premises for the purpose hereinbefore enumerated. B . The breach by the Lessor of any of the terms , covenants or conditions of this agreement to be kept, performed and observed by the Lessor, and the failure Of she Lessor to remedy, or to commence action to reca3y such b--each for a period of thirty (30) days aMy written notice from the Lessee of the eyisLence Of such breach . 21 . C . The assumption by the United States Government, or anv satsarize! agency of same, of the operation, cont_o_ or use of the airport and its facilities in such _ manner as to substantially restrict the Lessee from conducting its operation if such restrictions be contained for a period of six (6) months or more. ARTICLE 1_; - TERMINATION BY LESSOR 1 . 1r_ a3dition to all other remedies available to the Lessor, this agre_mont shall be subject to cancellation by the Lessor should any one or more of the following exist: A. If the Lessee shall file voluntary petition of bankru tcy, or if proceedings in bankruptcy shall be instituted against it and it is thereafter adjudicated a bankrupt pursuant to such proceedings; or if a court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under: the provisions of any Federal reorganization act; or if a receiver for Lessee ' s assets is appointed by a Court of competent jurisdiction; or if Lessee shall be divested of its rights, powers and privileges under this contract by other operation of law. B. if the Lessee shall abandon and discontinue the conduct ant operation of said office park plaza for a nerioa of six (6) months or more. C . if Lessee shall default in or fail to make_ any pay; e._ts at the times and in the amount_; as required of it under this contract . D . if the Lessee shall fail to perform, keep and observe all of the covenants and conditions contained in this contract to be performed, kept and observed by it . 22 . E . If the Lessee shall fail to abide by all applicable la'.:s , ordinances and rules and regulation of the United ] _ayes , State of California or the City of Palm Springs . 2 . Us-on the ha n_aing of any of the contingencies recited in subparagraph 1 . in Article IX above, Lessor shall Give written notice to Lessee to correct or core such default, failure to perform.. , or breach and if, within ninety (90) days from date of such notice, the default, failure to perform, or breach complained of shall not have been corrected in a manner satisfactory to the Lessor, then and in such event Lessor shall have the right, at once and Without further notice to Lessee, to declare this contract terminated and to enter coon and take full possession of the leased premises and, provide: further, that upon the happening of any one of the contingencies enumerated in subsection "a'' thereof, this contract shall be deemed to be breached by Lessee and thereupon :rithout entry or other action by Lessor the contract shall terminate subject to being reinstated only if such involuntary bankruptcy or insolvency proceedings petitions for reorganization, trusteeship, receivership, or other legal act divesting Lessee of its rights under this contract shall be denied, set aside, vacated or terminated in the Lessee ' s favor within forth-five (45) days from the happening of the contingency . Upon the happening of said latter events, this contract shall he reinstated as if there had been no breach occasione� by the happening of said contingencies, proviVed that Lessee shall within ten (10) days after the final denial , vacating or setting aside of such petition on t n vacating, terminating or setting aside of such = ipointnent, pw or discharge any and all Surms of money whit: nay have beco7v due under this contract in the 23 . 0 0 interim and shell then _anain unpaid and shall likewise fully perform and discharge all other obligations which may have accrued and heco7e parable in the interim. 3 . Lessor shall i,.-e written notice of such termination to said Lessee if defa_its have not been cured within said ninety (90) days and the lease shall terminate within ten (10) days from the data of said notice . The acceptance of rentals and fees by __ ssor for any period after a default of any of the terms, covenants, and conditions herein contained to be perfor-ed, kept and observed by Lessee shall not be deemed a waiver of any rights on the part of the Lessor to cancel this lease for failure by Lessee to so perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept and observed . No waiver by the Lessor of any of the terms of this agreement to be kept, performei and observed by the Lessee shall be construed to be or act as a waiver by the Lessor of any subsequent default on the part of the Lessee. ARTICLE X - SSSIC_: _ENT OPTIONS TO TERMINATE A. The privileges contained herein are personal . The Lessee agrees that it will not assign the same or any portion thereof or any improvements thereon including, but not limited to, building or facilities constructed on the premises without the express ccnsent of the Lessor in writing. Any purported assignment cr -violation hereof shall be void . Lessee will not be unnecessarily arbitrary in granting said permission, but the Lessor shall be the sole judge as to the reliability, capability, character and desirability of the parties involved until construction of all improvements is completed . Thereafter, Lessor agrees that it will not unreasonably withhold its consent. 2` . B. The parties hereto recognize that Lessee will engage in a development and rental program to construct and rent office space can the property leased herein _ If market conditions are such that said rental program does not reason- ably meet the projections established by the Lessee, then and in that event Lessee at its sole option may modify this lease so as to surrender and exclude that portion of the leased premises which in the sole discretion of Lessee it deems no longer feasible to develop c•;ithin a reasonable time schedule. There shall be no time limitations on the exercise of such options. If Lessee elects to surrender a portion of the leased premises, there shall be a pro- rates reduction_ in rental obligation and in the amount of improvements required by Article III herein. Such pro- rata reduction shall be based upon the number of square feet of office space authorized under any final plot plan approval by the City of Palm Springs. In addition, Lessee agrees that any property so surrendered and excluded from this lease shall have ingress and egress for development thereof. Notwithstanding any other provision contained in this subparagraph B, it is understood that if Lessee elects to surrender a portion of the leased premises pursuant to this subparagraph it can only do so as follows : (1) Lritten notice of such surrender must be given to the Lessor on or before the last thirty (30) days preceding the beginning of the lease year in which the surrender is to talc place; and (2.) At the time such written notice is give? , Lessee, : .st tender pay^ent to the Lessor in the amount of 06 , 578 for etch undeveloped acre of land as a consideration for such surrender) and 25 . (3) Lessee agrees to execute an A,mendmenL to ,.^is lease rer.o .%inc, the described parcels, involved in the notice or surrender, from this lease. ARTICLE }'_I - NON EXCLUSIVENESS Nothing container: in this agreement shall be construed, grant or authorize the granting of any exclusive right within the meaning of Section 308 of Federal Aviation Act of 1958 , as amended . ARTICLE XII - RIGHT OF INSPECTION The Airport Nanag-er and/or his duly authorized repre- sentatives shall have at any and all times, the full and unrestricted right to enter the premises for the purpose of inspecting such pre-miles and of doing any and all -things with reference thereto which the Lessor is obligated or authorizes to do as set forte herein or which may be deemed necessary for the proper general conduct and operation of t-he Palm. Springs municipal Airport, or in the exercise of the Lessor` s Police power. ARTICLE XII - HOLDING OVER In the event Lessee shall hold over and remain in possession of the premises herein leased after expiration of this agreement without any written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this agreement, but shall only create a tenancy from ,::oath-to-raonLh which may be terminated at any time by the Lessor. AR'L CLE XIV - RULES AND REGULATIONS The Lessor shall have the right to and shall adopt and enforce re-sonable rules and regulations %•;ith re-spec- 1-. to "the 26 . use of the Airport and facilities thereon which Lessee agrees to observe and obey. ARTICIE XV - NAINTEN ANCE - ALTERATIONS FIND REPAIRS 1 . Lessee shall_ at all times keep the premises and all fixtures, equipment and personal property in a clean and orderly condition and appearance. 2 . Lessee shall repair, replace, rebuild and paint all or any part of the premises which may be damaged or destroyed by the acts or omissions of Lessee, sublessees or by those of its officers, employees, guests, invitees or of other persons on or at the premises with consent of Lessee . 3 . Lessee shall take such care of the premises and all parts thereof that at all times during the term of this agreement and at the expiration or termination hereof, the premises shall be in as good condition as at the time of completed construction or installation, except for reasonable wear which does not adversely affect the structural integrity or condition of the structures or adversely affect- the appearance and efficient and proper utilization of any part of the premises. The premises and all parts thereof shall include, but not be limited to, such of the following as are or may be located or installed in or on the premises during the term of this agreement: Fencing the exterior and interior of the building walls, the exterior and interior and operating mechanism of and attachments to windows and skylights , screens , roofs, foundations , steel work, columns; the exterior and interior and operating mechanism of and attachments to doors , partitions, floors , ceilings) inside and outside paving and unpav & areas, landscaping, glass of every kind, -and the utility, nachanical , electrical and other systems . 4 . Lessee shall make fregoent periodic inspections and as the necessity arises, regardless of the causes therefore, 27 . shall perform all necessary preventive maintenance, including, but not limited to, painting; make all necessary repairs and replacer:ents; and do all necessary rebuilding with respect to the premises and all parts thereof (including any total destruction) . All such maintenance, repairs, and replacement shall be of quality equal to the original in materials and workmanship. All exterior paint colors shall be subject to the prior approval of Lessor . AR. I;.'LE }VI - GENERAL PROVISIONS 1 . Notices to Lessor provided for in this agreement shall be sufficient if sent by registered mail, postage prepaid, addressed to the City Clerk, City of Palm Springs, Palm Springs, California 92262, and notices to the Lessee if sent by registered mail, postage prepaid, addressed President , Jelinor Development Inc . , 2159 Caliente Road , Palm Springs , CA 92262 or other such respective addresses as the parties may designate to each other from time to time in writing. 2 . The Lessee represents that it has carefully reviewed the terms and conditions of this agreement, and is familiar with such terms and conditions and agrees faithfully to comply with the same to the extent to which said terms and conditions apply to its activities as authorized and required by this instrument. 3 . The term Lessor as used in this agreement means the City of Palm Springs and where agreement speaks of approval and consent by the Lessor, such approval is understood to be manifested by an official act of the City of Palm Springs, unless otherwise expressly stated in this agreement. 4 . 19henever under this instrument a time is stated within which or by which original construction, repairs or reconstruction of 5a icl improvements shall- b(r! ctomploted , and 28 . if durivg such period a general or sympathetic strike or lockout, way or rebellion or some other event occurs beyond Lessee 's power to control, the period of delay so caused shall be aad2d to the period allowed herein for the completion of such :,'or ; . -RTIC E XVII - NON-DISCRIMINATION S FAA REQUIRED CLAUSES 1 . The Lessee, in the operations to be conducted pursaant to the provisions of this Agreement and otherwise in the use of the Airport, shall not discriminate against any person or class of persons by reason of race, color, creed or national origin as in any manner prohibited by Part 15 of the Federal Aviation Regulations or any amendments thereto . 2 . The Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof . It shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, however, that the Lessee may be allowed to make reasonable and non-discriminatory discounts, rebates or other similar type of price reductions to volume purchaser, and in accordance with the other provisions of this license with regard to discounts and rebates . 3 . `]on-coup fiance with these provisions shall constitute a material breach of this Agreement. In the event- of such non-co7vliance , the City shall have the right to terminate wit,00t liability; or at the election of the City or the Un_ tcd States , both shall have the right to judicially enforce the ?DUTO provisions . _ he Lessee agrees to insert the anti ._di.sci.ila.ination pro7isions harwiDabove enumerated in any agreement by which sn N :._a_ _ grants a right or privilege to any person, firm 29 . or corporation to render accommodations and/or services to the public on the subject premises. 5 . The City also reserves the right, but shall not be . obligated to the Lessee, to maintain and keep in repair the landing area or the Airport as well as publicly-owned facilities of the airport together with the right to direct and control the activities of the Lessee in this regard . 6. The Lessee hereby agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event any future structure or building is planned or in the event of any planned modifi- cation or alteration of any present or future building or structure situated on the leased premises. 7 . The City hereby reserves a right of flight for the passage of aircraft in the airspace above the surface of the subject premises together with the right to create insaid airspace such noise as is or shall become inherent in the operation of aircraft operating on the Airport. S . The Lessee, by accepting this lease expressly agrees for itself, its successors and assigns that it shall not erect, nor permit the erection of any structure or object nor permit the growth of any tree on the land leased hereunder above the mean sea level elevation of five hundred (500) feet. In such an event, the City reserves the right to enter upon the land leased hereunder and require Lessee to remove the offending structure or object at the expense of Lessee . 9 , The Lessee, by accepting this Agreement, expressly agrees for itself, its successors and assigns that it shall not use the leased premises in any manner which might interfere with the landing and takiIig off of aircraft from or on the Palo Spr ungs Municipal Airport or otherwise create a hazard. in such an event, the City reserves the right to enter upon 30 . EXHIBIT "A" (to accompany Lease to Jelinor Development Corporation) We, the principal stockholders of Jelinor Development Corporation, for and in consideration of the granting of the above and foregoing lease to Jelinor Development Corporation, by signature hereunder, individually, jointly, severally, and personally agree to be bound by all of the terms, covenants, and conditions of the above and foregoing lease. Further, by signature hereunder we approve the property description comprising pages two and three of this Exhibit "A". , JEAN ES GELINAS61 PIERRE GELINAS a , HENRI DION Canada Province of Quebec On January 12th, 1979, before me, the undersigned, Henri Rodrigue, a Notary Public in and for the Province of Quebec, Canada, personally appeared Pierre Gelinas and Henri Dion, known to me to be the persons whose names have been subscribed to the present instrument, and acknowledged to me that they have executed the same. Witness my hand and official seal . Page 1 of - -71 — Henri Rodrigue, _ , Notary Public in and for the Province of Quebec LEASE DESCRIPTION FOR OFFICE BUILDING SITE IN SECTION 13 That portion of Lots 1 and 16 in Section 13, Township 4 South, Range 4 East, San Bernardino Base and Meridian, as shown on Nap of Palm Valley Colony Lands , according to map thereof recorded in Book 14, Page 652 of Maps, Records of San Diego County, California, being in the City of Palm Springs, County of Riverside, State of California, described as follows: Commencing at the Northeast corner of Lot 55 of Sunmor Estates No. 1 , according to map thereof recorded in Book 28, Page 58 of Maps , Records of Riverside County, California; thence South 89°53'06" East (Record South 89°53' East) along the Easterly prolongation of the Northerly line of said Lot 55, a distance of 95.00 feet to the TRUE POINT OF BEGINNING; thence continuing South 89053'06" East, a distance of 529.57 feet to a point on a line that is parallel with and 44.00 feet Westerly of the Easterly line of said Section 13; thence North 0°05'30" East, along said parallel line, a distance of 747.92 feet; thence South 89°53'56" West, a distance of 530.19 feet to a point on a line that is parallel with and 95.00 feet Easterly of the Easterly boundary line of said Sunmor Estates No. 1 and its Northerly prolongation; thence South 0°02' 38" West (Record South 0'04' West) along said parallel line, a distance of 745.92 feet to the TRUE POINT OF BEGINNING. Page 2 of 3 I LOT I I IEXISTING"T" I I HANGERS I I � I I HERTZ CA STORAGE S89°5358"W G30.I9' FIRE STATION W.CIVIC DR. m N TOWER RD. rri m ' h M1 tl• h W ? 0 p ° I O 'SUNMOR ESTATES I 3 W LLEs ' SITE W M•8•28/58 � : 0 M O -1 p O W n o o u U O O to Z J W • LOT 16 I LIVMOR OR.95. S89053'06,"E 529.57' LOT 55 (REC.S89953'E) LOT IG PALM VALLEY ` CQLONY LANDS M.B. 14/652 SECTION 13 , T 4 S., R•4 E.,S.B.B. aM- CITY OF PALM SPRINGS ' DEPARTMENT OF COMMUNITY DEVELOPMENT ENGINEERING DIVISION LEASE PLAT OFFICE LEASE SITE IN SECTION 13,7. 4 S, , DESIGN OY; SCALEt FILE NU R.4 E., S.B.8.a M. ON AIRPORT PROPERTY F. O. M. 1"= 200' R / W CHECKED BY: DWG. No+ SHEET NA Page 3 of 3 I OF I r subject premises and cause the abatement of the interference or hazard at the cxpence of the Lessee . 10 . This agreement, and all the provisions hereof, shall be subject to whatever right the United States Govern.�,.ent nova has or in the future may have or acquire, affecting control, operation, regulation or commandeering of the Airport or the exclusive or non-exclusive use of the Airport by the United States during the time of oar or national emergency- ARTICLE XVIII - INVALID PROVISIONS In the event any covenant, condition, or provision herein containers is held to be invalid by any court of competent jurisdiction, the invalidity of any such covenant, condition or provision, herein contained is hereby declared to he severable and the remainder of this agreement- shall remain in full force and effect provided that the validity of any such covenant, condition or provision does not materially prejudice, either the Lessor or Lessee, in its respective rights and abrogations contained in the valid covenants, conditions or Provisions of this lease . IN CdITNESS WHEREOF, the parties have caused this agreement to he executed by their duly authorized officers and their respective seals to he hereto affixed the day and year first above written. LESSOR CITY OF PALM SPRINGS, CALIFO}22:tf!,� D lu'ty City Cler}— — y—ilanacJer ---- Z i'IEii„D F; 1'PROVP.D : LESSEE, JP:T,ItiOP, DF.,VBLOY_MLLa1T COF.F'O12T,TIpP?, A California Corpoi'U-i-o:rBy -,i- /�y '..�� - - Pre�SGfs� r By Sec re_tury ---- -- 3]. . - 'TO 4491 (Corlporation) TI STATE OF CALIFORNIA l COUNTY OF__RiVeXZide ? SS. TOn October 17, 1978 before me, the undersigned, a Notary Public in and for said State, personally appeared S.Y• c3elinas Is rc known to me to be the President, XX /�y/X�X/7fti/X�X�X�,7[ m > .xe ato of the corporation that executed Che within Instrument, T Isnown to me tobe the persons who executed the within -I insh me on behalf of the corporation therein named, and r, acknowledged to me that such corporation executed the within !� Snstrunrent pursuant to its by-laws or a resolution of its board 'o OFFICIAL SEAL of directors. IRENE L. CIENDERS WITNESS my hand and official seal. / "'.it+ ;m NOTARY PUBLIC.CALIFORNIA y r! efly PRINCIPAL OFFICE IN p RIVERSIr:E COUNTY f Signature My Commission E::uitas September 29, 13o ,79 �} 4 Name (Typed or Printed) (This aroa for ornew notarial scan STATE OF CALIFORNIA, ss. COUNTY OF— Ri uprsi do ON tirtnhpr 1 R 1-9.7$_ 19_, before me, the undersigned, a Notary Public in and for the said State, personally appeared Henri nion ,XK4DYJ6XgQ�)kX�9(Hlk — XXXXX1C X*XtXXAXXXXXXXXXXXXXXXXXXXX , known tome YdfRlQPyPXXXXXXXXXX Secretary of—Jelinnr DaVe7opment Cor_p0r—a�1_0 the Corpotation Chat executed the within nstrument, known to me to be the persons who I' executed the within Instrument, on behalf of the Corporation herein named, and acknowledged to me that such Corporation executed the within Instrument pursuant to its by-laws or a �w OFFICIAL SEAL resolution of its board of directors. r,• C E. BLAND WI1rNESS ry hand and official seal. NOIARY R`! PUBLIC - CALIFORNIA FIVERSN)E courm^ -�` L.r/ canm e�ims n4C la, 1081 A CHRINE E . BLAND Notary Public in and for said State. ACKNOWLEDGMENT—Corp. CKNOWLEDGMENT—Corp Pres. A Sec.--Walcotts Form 226—Rev.3-64 n. x, RESOLUTION NO. 12870 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A LEASE AGREEMENT WITH JELINOR DEVELOPMENT CORPORATION FOR A NINE-ACRE PLOT OF AIRPORT LAND. WHEREAS The United States of America, acting through the War Assets Administration, deeded certain properties to the City of Palm Springs for the purpose of producing revenue for the support, maintenance, and development of the Palm Springs Municipal Airport; and WHEREAS the Ai port Commission and Staff have sought proposals for development of a nine-acre parcel of said land; and WHEREAS the Airport Commission and Staff have recommended the grant of a lease agreement with Jelinor Development Corporation. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that said lease agreement by and between the City of Palm Springs and Jelinor Development Corporation be approved effective January 5, 1979 and expiring January 4, 2029. ADOPTED this 3rd day of January 1979. AYES: Councilmembers Beadling, Doyle, Field, Rose and Mayor Beirich NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By s/J. Sumich s/Donald A. Blubaugh Deputy City Clerk City Manager REVIEWED AND APPROVED 7 b