EXHIBIT 6.3
LEASE AGREEMENT
RECEIVED FROM INDUSTRIES INTERNATIONAL, Inc. and/or Nominees, hereinafter
referred to as LESSEE, the sum of Fifteen Hundred Dollars ($1,500.00)in the
form of a cashier's check as a deposit which, upon acceptance of this Lease,
shall become the property of Xxxx Xxxxxxxx, and/or his assign is, hereinafter
referred to as LESSOR and shall be applied to the first lease payment and
shall be non-refundable. In the event that this Lease is not accepted by the
Lessor within thirty (30) days, the total deposit received shall be refunded
to the Lessee.
Lessee hereby offers to lease from Lessor the real property to the city
of Xxxxxxx, County of Xxxxx, State of Nevada, and described as follows:
Assessors Parcel Number 000-000-000, approximately 80 acres a portion of
Section 18, Township 16 South, range 68 East, IM.D.B. & M. All the east half
(E 1/2) of the Northwest Quarter (NW1/4) of Section 18, Township 16 South,
Range 68 East, M.D.B. & M.
Upon the following terms and conditions:
1. TERM: The term hereof shall commence on September 1, 1994, and
shall be renewable every 20 years for a total term of 99 years. Each renewal
Shall be upon the same terms and conditions as the previous term, except as
provided under paragraph 2 and on the conditions of paragraph 16 herein.
2. RENT: The annual rent shall be $100.00 per acre for the first
five (5 )years. There shall be an adjustment in rent beginning the Sixth
(6th) year and every five (5) years thereafter and shall be adjusted according
to the cost of living index according to the Federal 11th District for "all
terms." All lease payments shall be made to Lessor semi-annually beginning on
March 1, 1995.
3. USE: The property shall be used for development of a golf course
and real estate development.
4. ASSIGNMENT AND SUBLETTING: Lessee may assign this Lease and/or
sublet any Portion of the premises, without prior written consent from Lessor.
Lessee shall notify Lessor of any such assignment or sublease within thirty
(30) days of the execution of the same.
5. ORDINANCES AND STATUTES: Lessee Shall comply with all statutes,
ordinances and requirements of all municipal, state and federal authorities
now in force, or which may hereafter become in force. The commencement or
pendency of any state or federal court abatement proceeding affecting the use
of the premises shall, at the option of Lessor, be deemed to be a breach of
this Lease.
6. INDEMNIFICATION OF LESSOR: Lessor shall not be liable for any
damage or infury to Lessee, or any other person, or to any property, occurring
on the demised premises or any part thereof, and Lessee agrees to hold Lessor
harmless from any claims for damages, no matter how caused.
7. INSURANCE: Lessee, at his expense, shall maintain public
liability insurance including bodily injury and property damage insuring
Lessee and Lessor with a minimum coverage as follows One Million Dollars
($l,000,000.00) commencing upon ground breaking, Lessee shall provide Lessor
with a Certificate of Insurance showing Lessor as an additional insured. The
Certificate shall provide for a ten-day notice to Lessor in the event of
cancellation or material change of coverage.
8. UTILITIES: Lessee agrees that he shall be responsible for the
payment of all utilities and other services delivered to the premises, and for
the installation of any and all lines to the property. Lessor shall not be
Liable for any cost of improvements to the property.
9. INSOLVENCY: In the event a receiver is appointed to take over the
business of Lessee, or in the event Lessee makes a general assignment for the
benefit of creditors, or Lessee takes or suffers any action under any
insolvency or bankruptcy act, the same shall constitute a breach of this Lease
by Lessee.
10. REMEDIES OF OWNER ON DEFAULT: In the event of any breach or the
Lease by Lessee, Lessor may at his option, demand performance under the terms
of the Lease, if Lessee has not, cured any default within 30 days of such
notice or demand to cure, Lessor may, at Lessors option, terminate this Lease.
Nothing contained herein Shall be deemed to limit any other rights or remedies
which Lessor may have.
11. ATTORNEY'S FEES: In the event any suit should be brought for
recovery of the premises, or for any sum hereunder, or because of any act
which may arise out of possession of the premises, by either party, the
prevailing shall be entitled to all costs incurred in connection with such
action, including reasonable attorney's fees.
12. WAIVER. No failure of Lessor to enforce any term hereof shall
be deemed to be a waiver.
13. NOTICES: Any notice which either party may or is required to
give, Shall be given by mailing the same, postage prepaid, to Lessee or Lessor
at the addresses shown below, or at such other place(s) as may be designated
by the parties from time to time.
14. HEIRS, SUCCESSORS OR ASSIGNS: This Lease is binding upon and
shall inure to the benefit of the heirs, assigns and successors in interest to
the parties.
15. PROPERTY TAXES: Lessee shall be responsible to pay the property
taxes directly to the Xxxxx County Treasurer and shall provided to Lessor
proof of payment of the same year. In the event that such taxes are assessed
for a tax year commencing or extended before and beyond the term of the Lease,
the obligation of Lessee shall be proportionate to the portion of the Lease
term included in such year.
16. OPTION TO RENEW: Provided that Lessee is not in default in the
performance of this Lease, Lessee shall have the option to renew the Lease.
The terms and conditions Shall be consistent with the terms and conditions as
contained herein as amended, adjusted or modified from time to time by the
parties. The option shall be exercised by written notice given to Lessor not
less that six (6) months prior to the expiration of the Initial lease term or
the next preceding lease term, If notice is not given in the manner provided
herein with the time specified, this option shall expire and all improvements
Shall become the property of Lessor.
17. RIGHT OF FIRST REFUSAL: In the event that the Lessor decides to
sell the Property, Lessee shall, have the right of first refusal for the
purchase of subject property in this Lease.
18. LATE PENALTIES: There shall be a late penalty of 10% of any
amount due from Lessee including the periodic payments and/or property taxes,
if payment is not received within thirty (30) days of the date such payment
shall be due.
19. CONTINGENCY: This Lease is subject to the following:
a. Lessee Obtaining the adjacent property by purchase. Or lease to
have enough acreage for the development of a golf course.
b. Lessee obtaining sufficient rights to water by purchase or lease
to irrigate an 18-hole golf course.
c. Favorable soil and water test results showing soil and water
capable of growing and sustaining turf grass.
d. Lessee obtaining necessary zoning changes or use permits to
allow the development of a golf course and/or hotel on the property. Lessee
shall be responsible for the applications and fees and Lessor shall sign as
the Owner of the property.
e. Approval of development project from Xxxxx County requirements
at the sole determination of Lessee.
f. Approval from the Environmental Protection Agency and Bureau of
Land Management for the development project.
g. The overall acreage not being excessively impacted by any
municipal or governmental agency or department in the sole determination of
Lessee.
21. LESSOR'S OBLIGATION: Lessee shall be responsible for expense of
all testing, surveying, Xxxxx County fees and any other costs necessary for
the study of this property for the development of a golf course and/or other
real estate development and any attorney's fees involved herein.
This Lease is executed by the undersigned as evidence of Lessee's
commitment to lease and Lessor's acceptance of all terms and conditions
contained herein this 1st day of September 1994.
LESSEE: LESSEE:
/s/ Xxx Xxxxxx /s/ Xxxx Xxxxxxxx
INDUSTRIES INTERNATIONAL, Inc. Xxxx Xxxxxxxx
By: Xxx Xxxxxx, President
4615 S. 0000 X. X.X. Xxx 0000
Xxxx Xxxx Xxxx, Xxxx 00000 Xxxxxxx, XX 00000
Phone: 801/000-0000 Xhone: 702/000-0000
STATE OF NEVADA )
)
COUNTY OF XXXXX )
On September 1, 1994, personally appeared before me, A Notary Public, XXX
XXXXXX, known (or proved) to me to be the person who executed the foregoing
instrument and who acknowledged that he executed the above instrument.
WITNESS my hand and official seal.
/s/ Xxxxx X. Xxxxxxx
Notary Public
Xxxxx X. Xxxxxxx
Notary Public - Nevada
Xxxxx County
My appt. exp. Nov. 6, 1996
On September 1, 1994, personally appeared before me, A Notary Public,
XXXX XXXXXXXX, known (or proved) to me to be the person who executed the
foregoing instrument and who acknowledged that he executed the above
instrument.
WITNESS my hand and official seal.
/s/ Xxxxx X. Xxxxxxx
Notary Public
Xxxxx X. Xxxxxxx
Notary Public - Nevada
Xxxxx County
My appt. exp. Nov. 6, 1996
