HomeMy WebLinkAbout48-Community Development
CIT..cbF SAN BERNARDINO - REQUES) FOR COUNCIL ACT()N
From: Kenneth J. Henderson, Director
Subject:
AMENDMENT TO LOAN AGREEMENT
BETWEEN CITY AND JULIA'S
TORTILLAS
Dept: Community Development
Date: April 7, 1988
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Synopsis of Previous Council action:
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None
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Recommended motion:
That the Director of Community Development and the City Attorney be directed
to prepare the necessary amendment to the loan agreement with Julia's
Tortillas to reflect an increase in the current loan agreement from $30,000
to $33,500 with the loan term, conditions, interest rate and repayment
provisions remaining unchange~.
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Contact perlOn:
Supporting date attached:
Ken Henderson
Phone:
5065
Staff Report
Ward:
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FUNDING REQUIREMENTS:
Amount:
$3,500.00
Source: (ACCT. NO.)
(ACCT. DESCRIPTION)
121-545
Small Business Loan Fund
Finance: f~~ ~
Council Notel:
AnAnol. itA"' Nn Ljg:
C~T.pOF SAN BERNARDltS - REQUEs9 FOR COUNCIL ACTI~
STAFF REPORT
On March 14, 1988, staff met with Councilwoman Estrada, Eddie
Negrete, Sr., and family and council office staff regarding the
potential expansion of Julia's Tortillas, This particular
business has been in operation for some forty (40) years and is
currently attempting to re-orient its business activity from
retail to wholesale.
Julia's Tortillas has previously received small business loan
assistance from the Economic Development Council (EDC) in the
amount of $30,000, and for the most part has remained current with
the loan repayment schedule. The City has since assumed
responsibility for the small business loan program formerly
administered by EDC.
In order to adequately address its expansion needs and make the
transition from retail to wholesale, Julia's has solicited and
received a proposal from TEMPCO Machine and Design, Inc., a food
engineering and processing firm. The purpose of the study would
be to develop an overall plan of action relating to the proposed
expansion. The plan would be organized in phases with each phase
containing cost, timeframe and feasibility factors among others,
and based, in part on the success, or lack thereof, of the
previous phase,
Because of cash-flow problems normally"associated with rapidly
expanding businesses, Julia's is requesting additional assistance
in the amount of $3,500.00 to finance the study as described in
the TEMPCO proposal.
If Julia's proposal as summarized above meets with the approval of
the Mayor and Common Council, staff requests that the Mayor and
Common Council direct staff to amend the affected loan documents
to reflect the increased loan amount of $33,500. The loan term,
conditions, interest rate and repayment provisions will remain
unchanged.
Development
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JULIA.'S
CORN If FWUR TOHI'IlUS
TELEPHONE 714-885-3089
March 24, 1988
Honorable Mayor and
Members of the Common Council
300 North "0" street
San Bernardino, CA 92418
Re: EXPANSION OF JULIA'S TORTILLAS
Dear Mayor and Members of the Common council:
At this time, Julia's is again preparing our company to
once more keep pace with the continuous changes in
business. This helps Julia's Tortillas keep pace with
new market quality products to ensure the services
required by our customers' needs, It is for this very
reason that at this time, I, Eddie Negrete, Sr., on
behalf of Julia's Tortilla's family ask for your assis-
tance once again to help our company achieve our next
planning stage of continuing to upgrade the quality
product capacity produced at our local facilities,
Julia's is aSking for financial assistance to retain and
implement much needed technical consulting services to
ensure positive results of our company's continued
success for our company's line of products and increas-
ing our company's role of employing a greater number of
personnel.
I understand that this matter will be considered by the
Mayor and Common Council at your earliest possible
convenience. We will be working with the City Community
Development Department toward this end.
~nc;rel~:/ ~
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Eddie Negrete, S .
4-7-1\1\
"If It's A Tortilla, It's Julia's"
1272 WEST SIXTH STREET . SAN BERNARDINO, CALIFORNIA 92411
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Tempeo
March 23, 1988
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MI'. Eddie Nelrete
Julia's Enterprises
1272 West Sixth Street
San Bernadino, California
92411
Deal' MI'. NSlrete,
In accordance with your request, we have prepared this proposal
to conduct a plant study for your tortilla/tortilla chip factory
in San Bernadino. We have formulated a Scope of Work which is
intended to provide you with information which will help
determine your additional equipment, enerlY, and facility
requirements for your increased production requirements.
Scope of Work
Prepare a type written report to include the followinl
information I
1. Executive Summary (Description of Project),
2. Recommendations.
3, Enlineerinl analysis (Production data and related data).
4, Equipment requirements.
5. Vendor qualifications.
6. Floorplans (Proposed equipment layouts).
7. Energy use for process with cost analysis.
As shown in Scope of Work, our company will prepare drawinls for
use in third party bids for electrical, plumbinl and ventilation
requirements.
Fees and Conditions
Based upon the Scope of Work presented above, we recommend that
$3,500 be budgeted for the project,
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TEMPCO MACHINE & DESIGN, INC. .4130 TIGRIS WAY. RIVERSIDE, CALIFORNIA 92503. (714) 736-8427
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Mr. Eddie Negrete
Julia's Enterpr~ses
Page 2
It this proposal meets with your approval. it may be formalized
by a signature in the appropriate space below. If we can provide
any further information on this matter please contact us,
ecttully submitted,
J h L, Mistretta, Jr.
President
JtI:bll
ACCEPTED BY:
Julia's Enterprises
By
(TITLE)
Date
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2 LENDER:
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BORROWER:
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LOAN AGREEMENT
SAN BERNARDINO ECONOMIC
DEVELOPMENT COUNCIL
330 North "D" Street, Suite 420
San Bernardino, CA 92401
JULIA'S ENTERPRISES, INC., a
California corporation
1272 West 6th Street
San Bernardino, CA 92411
RECITALS
SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL, (SBEDC)
9 identified as "Lender", is a California non-profit corporation, in-
10 corporated for charitable purposes, including the utilization of
11 various development tools and practices to aid areas and communities
12 within the City of San Bernardino which are, or may become, economic-
13 ally and socially disadvantaged by attracting new industry and ser-
14 vices and by encouraging the development and retention of existing
15 industries and services within the City of San Bernardino.
16 2.
JULIA'S ENTERPRISES, INC., a California corporation, own
17 and operates a business known as JULIA'S ENTERPRISES, INC. located
18 at 1272 West 6th Street, San Bernardino, CA 92411, herein identified
19 as "Borrower", desires to borrow money for the purchase of a new
20 tortilla chip fryer, exhaust blower, transfer conveyor, filter
21 system and tostada fryer.
22 3.
The City of San Bernardino, herein identified as "City",
23 a California Charter City, has, under the terms of a Revolving Loan
24 Fund Agreement directed Lender to perform certain loan activities
25 ithin the City of San Bernardino to revitalize and retain industry
26 and services in distressed areas as permitted in 24 CFR, Section 570,
27 et seq.
28 4.
Under the terms of said agreement, City has made avail-
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1 able to Lender funds in the amount of THIRTY THOUSAND DOLLARS
2 ($30,000.00) for the purpose of funding a loan made by and between
3 Lender and Borrower as provided for in this agreement.
4 5. The Borrower wishes to borrow and Lender wishes to lend
5 a total amount of THIRTY THOUSAND DOLLARS ($30,000.00) for the pur-
6 poses and under the terms which are fully described in this agree-
'1 ment.
8 NOW, THEREFORE, based on the foregoing recitals, and
9 on the covenants, conditions, and promises contained herein, SBEDC,
10 the Lender and JULIA'S ENTERPRISES, INC., a California corporation,
11 the Borrower, hereby acknowledge and agree as follows:
12 6. LOAN BY LENDER:
13 Lender agrees, subject to the terms and conditions of
14 this agreement, and in consideration of the representations, cove-
15 nants and obligations of Borrower contained in this entire agree-
16 ment, to loan to Borrower the total sum of THIRTY THOUSAND DOLLARS
17 ($30,000.00) to finance the purchase, installation and commencement
18 of operation of a tortilla chip fryer, exhaust blower, transfer
19 conveyor, filter system and tostada fryer at Borrowers business 10-
20 cated at 1272 West 6th Street, San Bernardino, CA 92411 to enable
21 Borrower to increase the production of the Borrower's products.
22 The Lender shall disburse the proceeds of the loan as
23 required to meet the schedule of Borrower's contract with Tempco,
24 the Company suppling the equipment to Borrower. The remainder of
25 the proceeds of the loan shall be disbursed to Borrower for insta11-
26 ation charges and commencement of operation as needed by Borrower
27 in the discretion of the Lender's Executive Vice-President.
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1 7. LOAN REPAYMENT
2 For the consideration of the undertakings of Lender, and
3 of the loan made hereunder, Borrower hereby agrees to pay Lender the
4 entire sum forwarded and loaned to Borrower, under the terms and con
5 ditions of the Promissory Note dated August 1, 1986, copy of which
6 is attached hereto as Exhibit "A".
., 8. SECURITY
8 Payment of principal and interest hereunder, as set fort
9 in Exhibit "A", shall be secured by a Security Agreement in the form
10 attached hereto as Exhibit "B", together with a UCC-l filing for
11 the new equipment, a UCC-l filing for the existing fixtures and
of Borrower and a Personal Guarantee from each of the
12 equipment
13 following
14 NEGRETE.
15 9.
16
shareholders, EDWARD V. NEGRETE, E. VAL NEGRETE and JULIA
BORROWER OBLIGATIONS
Borrower agrees to maintain, keep open and continue oper-
17 ation of the business known as JULIA'S ENTERPRISES, INC" located at
18 1272 West 6th Street, San Bernardino, CA. 92411.
19 10. REPORTING REQUIREMENTS
20 A.) Borrower shall submit quarterly reports to Lender,
21 covering the quarters ending March 31, June 30, September 30, and
22 December 31 by the tenth (10) day of the month following the end of
23 each quarter.
24
These quarterly reports shall contain the following
25 information:
26 A.
27 B.
28 C,
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A narrative report of the program activity;
Total number of employees hired for the quarter;
A breakdown of all employees by racial composition;
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D. Identification of employee households headed by fe-
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2 males;
~ E. A breakdown of employees by wages paid;
4 F. Contracts or subcontracts in excess of TEN THOUSAND
5 DOLLARS ($10,000.00) must have HUD Form 2516 (9-82) submitted with
6 all quarterly reports.
7 B.) Non-discrimination:
8 Borrower shall not discriminate against any employee or
9 applicant for employment because of race, color, religion, sex,
10 ational origin, age or hadicap. Borrower shall take affirmative ac-
11 tion to insure that applicants are employed, and that employees are
12 treated during employment, without regard to their race, color, re-
13 ligion, sex national origin, age or handicap. Such action shall in-
14 elude, but not be limited to , the following: employment upgrading,
15 emotion or transfer, recruitment or recruitment advertising, layoff
16 r termination, rates of payor other forms of compensation and
17 selection for training including apprenticeship. Borrower agrees to
18 ost in conspicuous places, available to employees and applicants for
19 mployment, notices setting forth the provisions of this non-
20 iscrimination clause.
21 Borrower shall, in all solicitations or advertisements
22 or employees placed by or on behalf of Borrower state that all quali
23 ied applicants will receive consideration for employment without re-
---24 to race, color, religion, sex, national origin, age or handicap.
25 Borrower shall comply with all provisions of Executive
26 rder No. 11246 of September 24, 1965 and the rules, regulations and
27 elevant orders, amendments of the foregoing, of the Secretary of
28 abor.
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11.
CONDITIONS TO LENDER
The obligation of the Lender to make advances under this
Agreement shall at all times be conditioned for the sole benefit of
Lender upon:
A. The execution of this Agreement by Borrower and Len-
der;
B. The receipt by Lender of such documents, certifi-
cations and opinions as may be reasonably satisfactory to Lender,
evidencing that this Agreement, Exhibits, and all other documents
initiated, given or executed in connection therewith, are fully and
validly executed by and on behalf of, and constitute the valid and
enforceable obligation of, the obligors thereunder pursuant to the
respective terms of each. Further, the execution and delivery of
this Agreement, Exhibits and all other documents executed or given
by Borrower hereunder, and the respective obligors thereunder, will
not breach or violate any articles or agreements of limited partner-
ships, any articles of incorporation, any by-law restrictions, or
any law or governmental regulation.
12. OBLIGATIONS OF BORROWER HEREUNDER UNCONDITIONAL
The obligations of Borrower to make payments as required
in Exhibit "A" hereof shall be absolute and unconditional, and,
until such time as the principal of all funds forwarded to Borrower
shall have been fully paid, the Borrower shall not terminate or
suspend this Agreement or the payment of any obligations provided
hereunder, or under any other documents executed hereunder, or in
connection herewith for any cause.
13.
DEFAULT & REMEDIES
A. Default. The failure of Borrower to payor perform
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1 its obligations hereunder or the falsity of any representation, or
2 breach of any warranty or covenant made by Borrower hereunder, or
3 under the terms of any other document executed in connection here-
4 with, shall constitute a default hereunder;
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A failure by Borrower to pay the loan payment or to
6 make any other payment due and required to be made by Borrower here-
7 under, and when due, where such failure shall continue for a period
8 of ten (10) days after written notice thereof from Lender to Borrow-
9 er.
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2.
A failure by Borrower to observe and perform any
11 I other material provision of this entire Agreement where such fail-
12 ure shall continue for a period of thirty (30) days after written
13 notice thereof from Lender to Borrower; provided, however, that
14 if the nature of default by Borrower is such that more than thirty
15 (30) days are reasonably required for its cure, then Borrower
16 shall not be deemed to be in default if Borrower commences such
17 cure within said thirty (30) days thereafter diligently prosecutes
18 such cure to completion.
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3.
The making by Borrower of any general assignment fo
20 the benefit of creditors; the filing by or against Borrower of a
21 petition to have Borrower adjudged bankrupt or of a petition for
22 reorganization or arrangement under any law relating to bankruptcy
23 (unless, in the case of a petition filed against Borrower; the same
i 24 is dismissed within sixty (60) days); appointment of a trustee or
25 receiver to take possession of substantially all of Borrower's
26 assets where possession is not restored to Borrower within thirty
27 (30) days; or the attachment, execution or other judicial seizure
28 of substantially all of Borrower's assets where such seizure is
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not discharged within thirty (30) days.
B. Remedies. Upon the occurence of a default by Borrow-
er, Lender may take anyone or more of the following remedial steps:
1. Declare the entire principalbalance then unpaid unde
the terms of this Agreement, and evidenced in Exhibit "A", illlllled-
iately due and payable.
2. Take whatever action at law or in equity (other than
an action for specific performance or non-monetary obligations) as
may appear necessary or desirable, in the sole discretion of Lender,
to collect the amounts then due, to enforce performance and obser-
vance of any obligation, agreement or covenant of the Borrower under
this Agreement, or under any other document executed in connection
herewith.
3. Institute any action or proceeding at law or in
equity for the collection of the sums so due and unpaid, and to pro-
secute any such action or proceeding to judgment or final decree,
and to enforce any such judgment or final decree and collect, in a
manner provided by law, the monies adjudged or decreed to be pay-
able.
C, No Remedy Exclusive. No remedy herein conferred up-
on or reserved to the Lender is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy
shall be cumulative, and shall be in addition to every other remedy
given under this Agreement or now existing at law or in equity, or
by statute, and may be excerised in such number, at such times and
in such order as Lender may determine in its discretion. Any and
all notices of default must be remedied within thirty (30) days of
receipt of said notice.
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1 14. AGREEMENT TO PAY ATTORNEYS FEES AND EXPENSES
2 In the event Lender or Borrower utilize the services of
3 any attorney or attorneys in attempts to collect any sums due under
4 this Agreement or any other document executed or given in connection
5 herewith or hereunder, or if the Lender or Borrower becomes a party,
6 plaintiff or defendant or otherwise appears in any legal proceeding
7 relating to this Agreement or any of the documents executed here-
8 under, or in connection herewith, the prevailing party shall be en-
9 titled to all court costs, attorneys' fees and expenses as the court
10 . may fix.
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COMPLIANCE WITH LAWS AND CONTRACTS
This Agreement shall be subject to, and all parties to
this Agreement shall comply with all applicable local, state and
federal laws and regulations not specifically identified in this
Agreement, and any applicable contracts with federal agencies.
Further, this Agreement shall be governed by and con-
strued in accordance with the laws of the State of California, and
all applicable federal statutes and regulations as amended.
16. RECORDS
Borrower shall maintain and keep books and records as
they relate to this program funding on a current basis recording the
transaction in a form satisfactory to Lender and in accordance with
generally acceptable accounting principles. Said books and records
shall be made available to Lender, the State of California, the
Federal Government and to any authorized representative thereof for
purposes of audit at all reasonable time and places. All such books
and records shall be retained for such periods of time as required
by law provided, however, notwithstanding any shorter periods of
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retention, all books, records and supporting detail shall be re-
tained for a period of at least three (3) years after the expira-
tion of the term of this Agreement.
17.
NOTICES
All notices, certificates, or other coomunications here-
under shall be delivered either personally or by registered or cer-
tified mail, postage prepaid, return receipt requested, and add-
ressed to the parties at the addresses set forth in this Agree-
ment, If given by mail, such notice shall be effective on the date
following the date mailed. All such notices shall be delivered or
mailed to Lender or Borrower at the addresses designated on Page 1
of this Agreement.
18.
EXECUTION OF DOCUMENTS
The parties hereto shall, exercising reasonable dili-
gence execute any and all documents and do all things as may be
necessary or advisable under the circumstances tp give practical
effect to this Agreement, and to evidence, perfect, and protect
all rights and interests granted to the parties hereunder.
19.
HOLD HARMLESS
Borrower shall hold Lender, its elective appointive
boards, officers, agents and employees, harmless from any liability
for damage or claims for damage for personal injury, including
death, as well as from claims for property damage which may arise
from Borrower's or any of its sub-contractors' operations under
this Agreement, whether such operations be by Borrower or by any
sub-contractor, or sub-contractors, or by anyone or more persons
directly or indirectly employed by, or acting as agent for Borrower
or any sub-contractor or sub-contractors. Borrower shall defend
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Lender and its elective appointive boards, officers, agents, and
employees from any suits or actions at law or in equity for dam-
ages caused, or alleged to have been caused, by reason of aforesaid
operations.
20. RELATIONSHIP
No member, officer, or employee of Lender, or designees
or agents, no member of the governing body of Lender, and no other
public official who exercises any functions or responsibilities
with respect to the program during his tenure or for one year there-
after, shall have any interest, direct or indirect, in any contract
or sub-contract, or the proceeds thereof, for work to be performed
in connection with the activities assisted under this Agreement.
21.
CONFLICT OF INTEREST: NO INDIVIDUAL LIABILITY.
No member, official, or employee of Lender shall have
any financial interest, direct, or indirect, in this Agreement, nor
shall have any such member, official, or employee participate in
any decision relating to this Agreement which affects his pecuni-
ary interest, or the interests of any corporation, partnership, or
association, in which he is, directly or indirectly, interested.
No member, official, or employee of the City or Lender shall person-
ally liable in the event of any default or breach of this Agreement
by the City, Lender or Borrower.
22,
BINDING EFFECT
This Loan Agreement shall inure to the benefit of, and
shall be binding upon, the Lender and the Borrower and their res-
pective successors and assigns, subject, however, to the limitation
contained in this Agreement.
/ / / / /
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23. AMENDMENTS, CHANGES AND MODIFICATIONS
Except as otherwise provided in this Agreement, this
Agreement may not effectively amended, changed, modified, altered,
or terminated without the prior written consent of the Lender and
Borrower. No term or provision of this Agreement may be changed,
waived, discharged, or terminated orally, but only be an instrument
in writing signed by the party against which the enforcement of the
change, waiver, discharge, or termination is sought.
24.
EXECUTION OF COUNTERPARTS
This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which
shall constitute but one and the same instrument.
25.
NO FUTURE ENCUMBRANCES BY BORROWER
Borrower, after the date of this Agreement, shall not
in any manner encumber said property without the written consent of
Lender.
26.
TAXES AND ASSESSMENTS
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Except as in this Agreement otherwise expressly provided,
Borrower shall pay all general and special taxes, liens, charges,
including all assessments of every nature, levied, assessed, or
accruing on said business.
27.
INSURANCE
Borrower, during the continuance of this Agreement, shall
insure and keep insured, at their own cost and expense, for the full
insurance value thereof, all property of the business against loss
by fire or the elements in insurance companies approved by Lender
with loss payable to Lender. All monies collected by Lender from
any such policy shall be applied by Lender to the payment of the
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1 amount specified in this Agreement and the interest thereon, in
2 such order as Lender may elect.
~ 28. PAYMENTS BY LENDER
4 Should Borrower fail to pay any amount to be paid by him
5 pursuant to this Agreement for taxes, assessments, or insurance
6 within ten (10) days before such amount becomes delinquent, the
? Lender may pay such amount and Borrower will repay to Lender on
8 demand the amount paid by Lender together with interest thereon
9 from the date of payment by Lender to the date of repayment by Borro
10 wer at the rate of ten percent (10%) per annum.
11 29. DESTRUCTION OF PROPERTY
12 Destruction of, or damage to, any personal property, if
13 any, described in this Agreement, whether from fire or any other
14 cause, shall not release Borrower from any of their obligations
15 under this Agreement; it being expressly understood that Borrower
16 bears all risk of loss to, or damage of, said property.
17 30. GOOD CONDITION AND REPAIR
18 The Borrower agrees that said property is, at the date
19 of this Agreement, in good condition, order and repair, and that he
20 shall, at his cost and expense, maintain said property in as good
21 order and repair as it is on the date of this Agreement, reasonable
22 wear and tear excepted.
23 31. RIGHT OF INSPECTION
24 Lender shall have the right to enter on and inspect said
25 property at least once each calendar month. All repairs required
26 to said property at least once each calendar month, All repairs re-
27 quired to said property noted by Lender shall be made by Borrower
28 at their own cost and expense, within ten (10) days after he re-
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1 ceives notice in writing thereof from Lender.
2 32, WASTE AND REMOVAL OF BUSINESS
3 Borrower shall not remove or permit the removal of the
4 business without the consent of the Lender first had obtained in
5 writing.
6 33. MECHANICS' LIENS
? Borrower shall indemnify and hold Lender and the property
8 of Lender, including Lender's interest in said property, free and
9 harmless from liability for any and all mechanics' liens or other
10 expenses or damages resulting from any renovations, alterations,
11 buildings, repairs, or other work requested by Borrower.
12 34. PERSONAL INJURIES
13 Borrower shall indemnify and hold Lender free and harm-
14 less from any and all demands, loss, or liability resulting from
15 the injury to or death of any person or persons because of negli-
16 gence of Borrower or the condition of property at any time or times
17 after the date of this Agreement.
18 Borrower shall obtain and keep in force a policy of lia-
19 bility insurance naming SBEDC as an additional insured for an amount
20 not less than THREE HUNDRED THOUSAND DOLLARS ($300,000.00).
21 35. CONVEYANCE ON FULL PERFORMANCE
22 When the purchase price and all other amounts to be paid
23 by Borrower pursuant to this Agreement are fully paid as in this
24 Agreement provided, the Lender will execute and deliver to Borrower
25 a good and sufficient deed reconveying to Borrower good and market-
26 able title to said property.
27 36. NO REPRESENTATIONS
28 Borrower agrees with and represents to Lender that there
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28
o
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have been no representation by Lender or any agent of Lender of
any fact or opinion of Borrower's business and Borrower hereby ex-
pressly waives any and all claims for damages or recision or can-
cellation of this Agreement because of any representation made by
Lender or any agent of Lender other than such representaions as
maybe contained in this Agreement. Borrower further agrees that
Lender shall' not be liable for, or on account of any, inducements,
promises, representations, or agreements not contained in this
Agreement and further agrees that no agent or employee of Lender
is or has been authorized by Lender to make any representations
with respect to the business or the loan other than contained in
this Agreement then that if any such representations have been
made such representations are wholly unauthorized and not binding
on the Lender.
37.
ENTIRE AGREEMENT
Both Borrower and Lender agree that this Agreement
constitutes the sole and only Agreement between them respecting sai
property and correctly sets forth their obligations to each other
as of its date.
38.
CORPORATE AUTHORITY
Each individual executing this Agreement on behalf of
Borrower represents and warrants that he or she is duly authorized
to execute and deliver this Agreement on behalf of Borrower in
accordance with its terms.
IN WITNESS WHEREOF, on this
I
3 I
-,k'\
I
day of July, 1986,
the parties have executed this Loan Agreement in San Bernardino,
California.
/ / / / /
4-7-88
-14-
o
1 LENDER:
2
3
4
5
~
7
o
8 BORROWER:
9
10
11
12
13
14
15
16 Approved as to legal form
and content
17
18 BY:
19
20
21
22
23
24
25
26
27
28 4-7-88
o
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SAN BERNARDINO ECONOMIC DEVELOPMENT
COUNCIL, INC.
,/-:7 . ~~../
BY:"';:)((4:.... x, / (':<'-<11(,---./
. ." CHAI
BY, ~'~~NT
JULIA'S ENTERPRISES INC., a Calif-
ornia corporation
~ .
. ---- ~~Afl.f> < "iGRt.t:~
L~~
E. VA N TE
JULIA NEGRETE
-15-
o
o
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STATE OF CALIFORNIA
COUNTY OF SAN B,ERNARDINO
.A I
On this. '1 A./ day of /. , 1986, before me, the
undersigned, a Notary Publ' in d for said County and State, person-
ally appeared EDWARD V. N RETE, personally known to me to be (or
proved to me on the basis of satisfactory evidence), to be the person
whose name is subscribed to the within instrument, and acknowledged
to me that he executed the same.
WITNESS my hand and official seal.
I!
t f-7/t~4} ~~
NOTARY PUBLIC /
OFFICIAL SEAL
C l V1IlEYARD
-w..=:......
IA/I CClUNlY
1Iy_. Ellp. Auo, 21. 1.
" ~ ~ . w . ~ . . 7 . . . . . . . T
e
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
'-"7 f ~
On this /"-.......r day of .//v.v' , 1986, before me, the
undersigned, a Notary Pup ic i and or said County and State, person-
ally appeared E. VAL NEGRETE, personally known to me to be (or
proved to me on the basis of satisfactory evidence), to be the person
whose name is subscribed to the within instrument, and acknowledged
to me thatshe executed the same,
. 0FF1ClAL SEAl
C L VIllEYARD
~
.. _. .. Auo. II. ,.,
WITNESS my hand and official ~eal.
/
(/J-j?//V<-/~-/
''''''IT'I ~ T'l,r T"ll',nT"""
,
4-7-1\8
o
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ADDENDUM TO LOAN AGREEMENT AND PROMISSORY
NOTE SECURED BY EQUIPMENT AND PERSONAL GUARANTEE
San Bernardino, California
BORROWER:
JULIA'S ENTERPRISES, INC., a
California corporation
1272 West 6th Street
San Bernardino, CA 92411
LENDER:
SAN BERNARDINO ECONOMIC
DEVELOPMENT COUNCIL
330 North "D" Street,
Suite 420
San Bernardino, CA 92401
Borrower, JULIA'S ENTERPRISES, INC., a California corporation
and the Lender, SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL agree to
amend and modify the Loan Agreement between the parties executed on
July 3, 1986 and the Promissory Note secured by equipment and Person-
al Guarantee dated July 1, 1986 which was also executed on July 3,
1986 as follows:
The obligation for payment is amended to change the commencement
of the installment payments from August 1, to September 1, 1986 and
continuing for a period of fifty-nine (59) months until July 31, 1991.
On August 1, 1991 the balance of principal and interest then due,
estimated to be in the amount of Eighteen Thousand One Hundred Ninety
Three Dollars and Ninety Six Cents ($18,193.96) shall be due and pay-
able.
Except as specifically amended in this Addendum, each and all of
the provisions of the Loan Agreement and Promissory Note secured by
equipment and Personal Guarantee remain in full force and effect.
S,~N BERNARDINO ECONOMIC
DEVELOPMENT COUNCI INC.
BY': ~ <...:<:.... ii..<.(/f,.-/
, CHAI
~c:;1/ t/,~~
EDWARD V. NEG~~
Dated: July 17, 1986
~~ '
.~~~
BY:
6~
EXECUTIVE VICE-PRE DENT
BY:
fo~ hMI~H~
IC DEVELOPME
hgal form
~
IMt~E8NOM-
COUNCIL
jtV& - Clm~;
/ ULIA l"EGRETE
c
Approved as to
and content
o
o
o
o
1
2
SECURITY AGREEMENT
this 34-)'
This Agreement is made and entered into
Z day of July, 1986 by and between SM_ BErJ_ARDINO ECONOMIC DEVELOPMENT
4 COUNCIL and JULIA'S ENTERPRISES, INC., a California corporation.
5 RECITALS
6 This Agreement is made with reference to the following
7 facts:
8
A. JULIA'S ENTERPRISES, INC. is presently obligated to
9 pay to the SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL the sum of
10 THIRTY THOUSAND DOLLARS ($30,000.00) evidenced by a Promissory Note,
11 a copy of which is attached hereto as Exhibit "A" and incorporated
12 herein by this reference as though fully set forth pursuant to the
13 provisions of a Loan Agreement
14 DEVELOPMENT COUNIL and JULIA'S
between SAN BERNARDINO ECONOMIC J'
ENTERPRISES INC. dated July _=(~.
15 1986 copy of which is attac'led hereto as Exhibit "B" and incorpor-
16 ated herein by this reference as though fully set forth.
17
B. This Agreement is executed for the purpose of pro-
18 viding security for the repayment of the said Promissory Note and
19 the performance of the telms vi the "aid Loan Agreement and the per-
20 formance of the obligations as maybe described in this Agreement.
21 Now, therefore, in consideration of the mutual covenants
22 and conditions contained herein, SAN BERNARDINO ECONOMIC DEVELOPMENT
23 COUNCIL and JULIA'S ENTERPRISES, INC., a California corporation,
24 agree as follows:
25
1. JULIA'S ENTERPRISES, INC. will obtain and provide to
26 SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL two (2) separate UCC-1
27 Fianacing Statements with one of the statements to include a des-
28 cription of the property purchased with the proceeds of the loan
-1-
Exhibit "B"
.
o
o
o
o
1 from SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL and the other
2 including a description of the fixtures and equipment, other than
~ that purchased with the proceeds of the loan, owned by JULIA'S
4 ENTERPRISES, INC.
5
2. JULIA'S ENTERPRISES, INC. will obtain and provide to
;
I
1
6 SAN BERNARDINO ECONOMIC DEVELOPMENT COUNCIL the executed personal
7 guarantee from each of its shareholders.
8
3. JULIA'S ENTERPRISES, INC, will provide to SAN BERNAR-
9 DINO ECONOMIC DEVELOPMENT COUNCIL a copy of its Articles of Incorp-
10 oration, By-Laws and a copy of the Corporate Resolution authorizing
11 the officers to enter into the Loan Agreement and Security Agree-
12 ment and authorize the officers to sign the Promissory Note.
13 The provisions of this Security Agreement are concurrent
14 and in addition to the provisions of the Loan Agreement between the
15 parties attached hereto as Exhibit "B". In the event of any in-
16 consistencies between this Agreement and the provisions of the
17 Agreement attached hereto as Exhibit "B", the terms of Exhibit "B"
shall
superse~e
Oct 7'
I
then control.
18
19
20
DATE:
.-->
:J ,1986
22
23
24
25
26 BORROWER:
27
SAN BERNARDINO ECONOMIC DEVELOP
MENT COYJlJ.CIL, INC'/'
. ./,
BY :/ ..ic .c4.:~tl {../~.'---/
___/ CHAI
21 LENDER:
BY:
DENT
28\
JULIA'S ENTERPRISES, INC., a
California corporation
~/ ,t< ~S-L/I"""",
EDWARD V. NEGRETE
.
c
o
1
2.
~
4
5
, 6 form
'I
8 BY:
9
10
11
12
13
14
15
16
17
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20
21
22
23
24
25
26
27
28
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. r--
/~r:--<<'~"h.-/
/
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO .
,....." / " ! ~
On this . ~., day of ')A~J,-{;t , 1986, before me, the
undersigned, a Notary Public in, for said County and State, person-
ally appeared EDWARD V. NEGRETE / personally known to me to be (or
proved to me on the basis of satisfactory evidence), to be'the person
whose name is subscribed to the within instrument, and acknowledged
to me that he executed the same.
WITNESS my hand and official seal.
I
If Li7,J;~~L'J~ -<~i
NOTARY PUBLI~
.~
OFFICIAL SEAL
C L VINEYARD
.,'!J*tY ~11lGmIo
.... ~IIO COUNtY
IIyComoo, EJop. Aog. 211. 111II
"e
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
i
On this ~-:;;-vi' day of / J.{./"/' , 1986, before me, the
undersigned, a Notary Public in and for said County and State,person-
ally appeared E, VAL NEGRETE, personally known to me to be (or
proved to me on the basis of satisfactory evidence), to be the person
whose name is subscribed to the within instrument, and acknowledged
to me thatshe executed the same.
it OFFICIAL SEAL
C L VINEYARD
IlaWY Publlc-cdlomla
SAN BERNAROIIIO COUNTY
My COnIlI. Elql. ""g. 211, 19a9
WITNESS my hand and offi91a1 seal.
,
.: }'-J !
,l ,y /" /' ,<;:, .--:' <-<-./
/ /': I / <. ~ ,/'- .
N Tb.hlV 'J)TT1H Tf"
.
o
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GUARANTEE
1. The undersigned hereby endorses, guarantees, and promises to pay
the note from JULIA'S ENTERPRISES, INC., a California corporation
to SBEDC for the sum of THIRTY THOUSAND DOLLARS ($30,000.00)
WAIVERS
2. The undersigned hereby waives the following:
(a) Presentment, demand, protest, notice of protest, notice of
dishonor, and notice of nonpayment;
(b) The right, if any, to the benefit of, or to direct the appli-
cation of, any security hypothecated to the holder, howsoever arising,
shall have been paid; and
(c) The right to require the holder to proceed against the maker,
or to pursue any other remedy in the holder's power.
RIGHT OF DIRECT ACTION
3. The undersigned hereby further agrees that the holder may proceed
against the undersigned directly and independently of the maker, and that
the cessation of the liability of tension, renewal, forbearance, change 01
rate of interest, or acceptance, release or substitution of security, or
any impairment or suspension of the holder's remedies or rights against
the maker, shall not in any way affect the liability of the undersigned.
RENEWAL AND EXTENSIONS
4. The undersigned further agrees to all renewals and extensions of this
note for whatever period or periods. Any such renewals and extensions
may be made without notice to or the further consent of the undersigned.
5":-./ .~
" 'c_~/ P. ~
~~TURE OF GUARA R
EDWARD V. NEGRETE
STATE OF CALIFORNIA
COUNTY OF SAN B,RNARDINO
7 / ,/7
On this _,....~- day of U.A,
a Notary Pubiic in and sa
, 1986, before me, the undersigned,
County and State, personally appeared
EDWARD V. NEGRETE personally known to me to be (or proved to me on the
basis of satisfactory evidence), to be the person whose name is sub-
scribed to the within instrument, and acknowledged to me that he executed
the same.
WITNESS my hand and official
f i..0/;.' (/YL .--/
N ARY PUBLll.; /
/
seal.
I
.. ... . . . & ~ . .~~_.: ... . A . . A '-:.
{e OFFICIAL SEAL I
C L VINEYARD
IltWY PublIc-CIIIIOmIl
8AII 8EllNAROIIIO COUNTY
IIr c..m, blI. AiIlI. 2&, 1M
,
c'
o
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o
GUARANTEE
1. The undersigned hereby endorses, guarantees, and promises to pay
the note from JULIA'S ENTERPRISES, INC., a California corporation
to SBEDC for the sum of THIRTY THOUSAND DOLLARS ($30,000,00)
WAIVERS
2, The undersigned hereby waives the following:
(a) Presentment, demand, protest, notice of protest, notice of
dishonor, and notice of nonpayment;
(b) The right, if any, to the benefit of, or to direct the appli-
cation of, any security hypothecated to the holder, howsoever arising,
shall have been paid; and
(c) The right to require the holder to proceed against the maker,
or to pursue any other remedy in the holder's power.
RIGHT OF DIRECT ACTION
3. The undersigned hereby further agrees that the holder may proceed
against the undersigned directly and independently of the maker, and that
the cessation of the liability of tension, renewal, forbearance, change of
rate of interest, or acceptance, release or substitution of security, or
any impairment or suspension of the holder's remedies or rights against
the maker, shall not in any way affect the liability of the undersigned.
RENEWAL AND EXTENSIONS
4. The undersigned further agrees to all renewals and extensions of this
note for whatever period or periods. Any such renewals and extensions
may be made without notice to or the further consent of the undersigned.
~Le ~z:.
"SIG ATURE 0 UARANTOR
E. VAL NEG E
STATE OF CALIFORNIA
COUNTY OF SAN ~ERNARDINO
On this -;;1/") day of (/"1.....1:1 ,1986, before me, the undersigned
a Notary Public in and ~0r sa}~ County and State, personally appeared'
." /
,/ ,
E. VAL NEGRETE persona11fknown to me to be (or proved to me on the
basis of satisfactory evidence), to be the person whose name is sub-
scribed to the within instrument, and acknowledged to me that he executed
the same.
WITNESS my hand and official seal.
'y./<.!--"J . '. .. /
I /.~ .' ;" <-t_ ~ ;> /Z c: 7"
NOTARY PUBLI~
f - - - - - . . ~>t" . . -A. .---
. OFfICIAL sEAt. .. - it
. C L VINEYARD II'
Pubfl:-CallfOl'Pla r.,
{I SA~RNARCINO COUNTY I.;
My COm:n Uq> AU9. 26, 1989 ft
'. ~ . ~ . . . . ... ... . ... ... ..... ... ".....,..... J
~
o
o
o
o
GUARANTEE
1. The undersigned hereby endorses, guarantees, and promises to pay
the note from JULIA'S ENTERPRISES, INC., a California corporation
to SBEDC for the sum of THIRTY THOUSAND DOLLARS ($30,000.00)
WAIVERS
2. The undersigned hereby waives the following:
(a) Presentment, demand, protest, notice of protest, notice of
dishonor, and notice of nonpayment;
(b) The right, if any, to the benefit of, or to direct the appli-
cation of, any security hypothecated to the holder, howsoever arising,
shall have been paid; and
(c) The right to require the holder to proceed against the maker,
or to pursue any other remedy in the holder's power.
RIGHT OF DIRECT ACTION
3. The undersigned hereby further agrees that the holder may proceed
against the undersigned directly and independently of the maker, and that
the cessation of the liability of tension, renewal, forbearance, change of
rate of interest, or acceptance, release or substitution of security, or
any impairment or suspension of the holder's remedies or rights against
the maker, shall not in any way affect the liability of the undersigned.
RENEWAL AND EXTENSIONS
4. The undersigned further agrees to all renewals and extensions of this
note for whatever period or periods. Any such renewals and extensions
may be made without notice to or the further consent of the undersigned.
(~c.il~ cr 7/.; .. l!~.-
IGNATURE OF GUARA T R
JULIA NEGRETE
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On this day of , 1986, before me, the undersigned,
a Notary Public in and for said County and State, personally appeared
JULIA NEGRETE personally known to me to be (or proved to me on the
basis of satisfactory evidence), to be the person whose name is sub-
scribed to the within instrument, and acknowledged to me that he executed
the same.
WITNESS my hand and official seal.
NOTARY PUBLIC