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HomeMy WebLinkAbout05- Development Department EVELOPMENT DEPARTMEN OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REQUEST FOR COMMISSION/COUNCIL ACTION PROM: KENNETH J.I4ENDERSON SUBJECT: RUBA ENTERPRISES Executive Director ARCO AM/PM STATION DATE: August 30, 1994 ------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/CouncWCommittee Action(s): On June 24, 1994,the Community Development Commission approved,in concept,a loan guarantee in the amount of 1.3 million dollars to RUBA Enterprises,subject to loan approval by Valley Bank. Staff was further directed to negotiate a loan guarantee with Valley Bank. On August 15, 1994,the Community Development Commission approved in concept,an increase of$100,000 in the Agency's loan guaranteed to RUBA Enterprises,subject to Valley Bank's approval of loan in the amount of$1,400,000, bringing the total Agency loan guarantee request to$1,400,000. ------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve an Owner Participation Agreement(OPA) between the Redevelopment Agency and RUBA Enterprises relative to the ARCO AM/PM Station, approve the loan guarantee to Valley Bank in the amount of$1,400,000,subject to Valley Bank's approval of a$1,400,000 loan,and authorize the Executive Director to execute all documents relative to the OPA and loan guarantee. Administrator KENNEJTi J.HI SON R Executive Director Contact Person(s): Kenneth J.Henderson/Emily Wong_ Phone: 5081 Project Area(s): State College(SQ Ward(s): Six 6) Supporting Data Attached: Staff Report-,Owner Participation Agreement including Agency Guarantee FUNDING REQUIREMENTS: Amount: $1,400,000 Source: Tax Increment Budget Authority: Requested ------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ----------------------------------------------------------------------------------------------------------------- KJH:EMW:adw:09-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: DEVELOPMENT DEPARTMENT ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ RUBA Enterprises-ARCO AM/PM Station BACKGROUND RUBA Enterprises, which is owned by Mr. Atef Fakhoury, owns and operates an ARCO AM/PM Gas Station located at the Intersection of 1-215 Freeway and Palm Avenue. The property consists of a 27,211 square foot lot and includes a metal framed stucco exterior building. The Mini-Mart building totals 3,250 square feet and is fully equipped and stocked with inventory. The property also includes four(4) concrete gasoline service station islands under a lighted 1,920 square foot canopy with four(4)fuel dispensing pumps with sixteen(16) nozzles. The property is located in close proximity to the I-215 Freeway, Blockbuster Pavilion and the Sheriffs Academy, and is, therefore, a high-traffic area. The facility employs 6-12 individuals on an ongoing basis and is open 24 hours daily. In addition to selling gasoline and related automotive products, the mini- market purveys a large assortment of high-profit margin items, such as groceries, candy, beer, soft drinks, prepared and frozen foods, toiletries, magazines and newspapers. Mr. Fakhoury has also acquired the adjoining parcel to the ARCO AM/PM location with the intent of developing a Denny's Restaurant, for which he has received tentative SBA 7A loan commitment from the Money Store in the amount of$1,025,000. In December 1990, Mr. Fakhoury obtained a construction loan from Upland Bank in the amount of$1,264,863 which would convert in nine(9) months to mini-permanent financing based upon a thirty (30)year amortization, due in seven(7)years. Due to a series of unavoidable delays obtaining permits and contractor start-ups, the construction of the gas station was not completed until July of 1992, during which time Upland Bank withdrew its offer for the mini-permanent loan. On August 15, 1994, the Community Development Commission approved, in concept, a loan guarantee in the amount of$1,400,000, subject to loan approval by Valley Bank. I ----------------------------------------------------------------------------------------------------------------- KJH:EMW:adw:09-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: DEVELOPMENT DEPARTMENT STAFF REPORT RUBA Enterprises ARCO AM/PM Station August 29, 1994 Page Number-2- Owner Participation Agreement In consideration for the Agency's provision of a loan guarantee in the amount of $1,400,000, RUBA Enterprises will agree to the principal conditions, as indicated in the attached Owner Participation Agreement and summarized below: 1. Personal guarantees of Mr. Fakhoury and Mrs. Fakhoury. 2. A Deed of Trust on the subject property located at 5985 N. Palm Avenue in San Bernardino. 3. A Deed of Trust on Mr. Fakhoury's principal residence located at 3779 Elmira Street in Claremont. I� 4. A Deed of Trust on property located at 18674 11th Street in Bloomington. 5. Payment of the guarantee fee of 1.5% in the amount of$21,000. Valley Bank Loan and Agency Guarantee Valley Bank has indicated a willingness to provide a $1,4000,000 loan subject to an Agency Guarantee for like amount based upon the following conditions: 1. Loan Amount: $1,400,000 2. Interest Rate: Bank of America Prime Rate Plus 2.75%variable 3. Loan repayment to be 240 payments of$5,833.33 per month, plus interest. 4. Guarantees from Atef Fakhoury, Shining Star Marketing, and San Bernardino Redevelopment Agency. I ---------------------------------------------------------------------------------------------------------------- KJH:EMw:adw:09-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: DEVELOPMENT DEPAT 'IENT STAFF REPORT RUBA Enterprises ARCO ..,vVPM Station August 29, 1994 Page Number-3- I Under the terms of the Agency Guarantee, Valley Bank shall provide a minimum of 45 days notice prior to taking any action to declare a default. Additionally, the Agency may terminate its obligations under the provisions of this Guarantee when this debt is paid in full or in the event that RUBA Enterprises has not been in default for a period of 60 months. Staff recommends adoption of the form motion. KENNETH J. ANDERSON, Executive Director Development Department i I ----------------------------------------------------------------------------------------------------------------- KJH:EMW:adw:09-01-04.cdc COMMISSION MEETING AGENDA MEETING DATE: 09/06/1994 Agenda Item Number: S RECORDING REQUESTED BY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND WHEN RECORDED RETURN TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 N. "E" STREET, THIRD FLOOR SAN BERNARDINO, CA 92401-1507 ATTN: EMILY WONG (Space Above for Recorder's Use) REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO OWNER PARTICIPATION AGREEMENT t ARCO AM/PM GAS STATION By and Between REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO and RUBA ENTERPRISES, INC. a California corporation I TABLE OF CONTENTS P_ age I. [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement . . . . . . . . . . . 1 B. [102] The Redevelopment Plan . . . . . . . . . . 2 C. [103] The Site . . . . . . . . . . . . . . . . . 2 D. [104] Parties to the Agreement . . . . . . . . . 2 1. [105] The Agency . . . . . . . . . . . . . . 2 2 . [106] The Participant . . . . . . . . . . . 3 3 . [107] Prohibition Against Change in Ownership, Management and j Control of the Participant . . . . . . 3 4. [108] Benefit to Project Area . . . . . . . 4 II. [200] AGENCY ASSISTANCE A. [201] Agency Loan Guaranty . . . . . . . . . . . 5 4 III. [300] IMPROVEMENT OF THE SITE A. [301] Improvement by Participant . . . . . . . . 6 1. [3 02] Cost of Project . . . . . . . . . . . 6 2 . [303 ] Bodily Injury and Property Damage Insurance . . . . . . 7 3 . [304] City and Other Governmental Agency Permits . . . . . . . . . . . . 8 4. [305] Rights of Access . . . . . . . . . . . 9 5. [306] Local, State and Federal Laws . . . . 9 6. [307] Antidiscrimination Construction 10 B. [308] Taxes, Assessments, Encumbrances and Liens . . . . . 10 C. [309] Prohibition Against Transfer of the Site, the Buildings or Structures Thereon and Assignment of Agreement . . . . . . . . . . . . . . 10 D. [310] Guaranty; Deed of Trust . . . . . . . . . it 1. [311] Agency Guaranty . . . . . . . . . . 11 2 . [312] Deed of Trust/Personal Guaranty 11 i f (i) E. [313] Mortgage, Deed of Trust, Sale and Lease-Back Financing; Rights of Holders . . . . . . . . . . . . 12 1. [314] No Encumbrances Except Mortgages, Deeds of Trust or Sale and Lease-Back for Development . . . 12 F. [315] Right of Agency to Satisfy Other Liens On The Site . . . . . . . . . . . . 12 G. [316] Release of Deed of Trust . . . . . . . . 13 IV. [400] USES OF SITE A. [401] Uses - Covenants Running With the Land 13 B. [402] Maintenance of the Site . . . . . . . . . 16 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction . . . . 17 V. [500] GENERAL PROVISIONS A. [501] Notices, Demands and Communications Between the Parties . . . . . . . . . . . 18 B. [502] Conflicts of Interest; Nonliability . . . 18 C. [503] Enforced Delay; Extension of Times of Performance . . . . . . . . . . 19 D. [504] Inspection of Books and Records . . . . . 20 VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General . . . . . . . . . . 20 j B. [602] Legal Actions . . . . . . . . . . . . . . 21 {) 1. [603] Institution of Legal Actions . . . . 21 2 . [604] Applicable Law . . . . . . . . . . . 21 3 . [605] Acceptance of Service of Process . . 21 C. [606] Rights and Remedies are Cumulative . . . 22 D. [607] Inaction Not a Waiver of Default . . . . 22 E. [608] Remedies . . . . . . . . . . . . . . . . 22 1. [609] Damages . . . . . . . . . . . . . . 22 VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency for Approval . . . . . . . . . . . 23 B. [702] Successors in Interest . . . . . . . . . 23 (ii) 0 VIII . [800] ENTIRE AGREEMENT, WAIVERS . . . . . . . . . . 23 IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY A. [901] Time for Acceptance . . . . . . . . . . . 24 ATTACHMENT NO. 1 - LEGAL DESCRIPTION OF THE SITE ATTACHMENT NO. 2 - AGENCY GUARANTEE AGREEMENT ATTACHMENT NO. 3 - PERSONAL GUARANTY OF MR. FAKHOURY ATTACHMENT NO. 4 - PERSONAL GUARANTY OF MRS. FAKHOURY ATTACHMENT NO. 5 - FORM OF DEED OF TRUST WITH ASSIGNMENT OF RENTS (iii) SBEO/0001 10PAIRUBA 08/30194 2:20 j OWNER PARTICIPATION AGREEMENT THIS AGREEMENT IS ENTERED INTO this 3- day of 1994 by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO (the "Agency") , and RUBA ENTERPRISES, INC. , a California corporation (the "Participant") . Agency and Participant hereby agree as follows: I . [100] SUBJECT OF AGREEMENT A. [101] Purpose of Agreement The purpose of this Agreement is to effectuate the Redevelopment Plan for the Northwest Redevelopment Project (the "Redevelopment Plan") by providing for Agency assistance to Participant in connection with the financing of the Site, as hereinafter defined, which is located within the Northwest Redevelopment Project Area (the "Project Area") and which will provide for economic development which will directly benefit the Project Area. The execution of this Agreement is in the vital and j best interests of the City of San Bernardino, California (the f "City") and the health, safety and welfare of its residents, and in accord with the oses c ubli purposes and P P p provisions of applicable state and local laws and requirements under which the Redevelopment Plan has been undertaken. B. [102] The Redevelopment Plan The Redevelopment Plan was approved by Ordinance of the Common Council of the City of San Bernardino; said Ordinance and the Redevelopment Plan as so approved are incorporated herein by reference. The Redevelopment Plan provides for the undertaking of redevelopment activities. C. [103 ] The Site The Site is that certain real property generally located at 5985 N. Palm Avenue which is the southern corner of the intersection of the Interstate 215 Freeway and Palm Avenue in the City of San Bernardino and as more fully described in the "Legal i Description of the Site" , which is attached hereto as Attachment No. 1 and is incorporated herein by this reference. D. [104] Parties to the Agreement 1. [105] The Agency The Agency is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California (Health and Safety Code Section 33020, et seq. ) The principal office of the Agency is located at 201 North "E" Street, San Bernardino, California 92401. "Agency" , as used in this Agreement, includes the a Community Development Commission of the City of San Bernardino, the Economic Development Agency of the City of San Bernardino the Redevelopment Agency of the City of San Bernardino and any 2 - assignee of or successor to their rights, powers and responsibilities. 2 . [106] The Participant The principal office and mailing address of the Participant for purposes of this Agreement is 5985 N. Palm Avenue, San Bernardino, California 72407, Attn: Atef Fakhoury. M 3 . [107] Prohibition Against Change in Ownership, Management and Control of the Participant The qualifications and identity of the Participant are of particular concern to the Agency. It is because of those qualifications and identity that the Agency has entered into this Agreement with the Participant. No voluntary or involuntary successor in interest of the Participant shall acquire any rights or powers under this Agreement except as expressly set forth herein. The Participant shall not assign all or any part of this Agreement or any rights hereunder without the prior written i approval of the Agency, which approval the Agency may grant, withhold or deny at its discretion. In the event of such transfer or assignment: (1) the assignee shall expressly assume the obligations of the Participant pursuant to this Agreement in writing satisfactory to the Agency; (2) the original Participant shall remain fully responsible for the performance and liable for the obligations of the Participant pursuant to this Agreement; and - 3 - (3) any guarantees provided to assure the performance of the Participant ' s obligations under this Agreement shall remain in full force and effect. In the absence of specific written agreement by the Agency, no such transfer, assignment or approval by the Agency shall be deemed to relieve the Participant or any other party from any obligation under this Agreement. All of the terms, covenants and conditions of this Agreement shall be binding upon and shall inure to the benefit of the Participant and the permitted successors and assigns of the Participant. Whenever the term "Participant" is used herein, such term shall include any other permitted successors and assigns as herein provided. The restrictions of this Section 107 shall terminate and i be of no further force and effect upon the repayment in full of the loan to which the Guaranty (as hereinafter defined) applies. 4 . [108] _Benefit to Project Area Agency has determined that the prior development of the Site and continued operation of a business on the Site will eliminate blight and provide a benefit to the Project Area through v an increase in tax increment revenues, the increase in sales tax revenues and the retention of approximately twelve (12) jobs. - 4 - II. [200] AGENCY ASSISTANCE A. [201] Agency Guaranty The Agency agrees to guaranty (the "Agency Guaranty") repayment by Participant of a certain loan in favor of Valley Bank, or such other lender as the Agency may approve in writing, which loan is to be in a principal amount equal to One Million Four Hundred Thousand Dollars ($1, 400, 000) (hereinafter referred to as the "Participant Loan") . As consideration for the Agency Guaranty and prior to the Agency' s execution and delivery of said Agency Guaranty, the Participant shall pay to the Agency a fee for the provision of the Agency Guaranty in an amount equal to Twenty-One Thousand Dollars ($21, 000) (the "Guaranty Fee") . The proceeds of the Participant Loan are to be used by Participant to cause the refinancing of the development of an existing Arco AM/PM Gas Station (the "Project") . The Agency Guaranty shall be reflected in a certain Guaranty Agreement in favor of the lender, as provided in Section 312 hereof, and shall be in a form substantially similar to Attachment No. 2 attached hereto and incorporated herein by I reference. In consideration for the Agency's provision of the Agency Guaranty, the Participant shall cause the immediate refinancing of the Site and shall cause the execution of personal guaranties of Mr. Fakhoury and Mrs. Fakhoury (the "Personal Guaranties") in the forms of Attachment No. 3 and Attachment No. 4, respectively, which are incorporated herein by this reference. In addition, Participant shall execute three (3) Deeds of Trust in favor of the Agency, one of which will convey title to Participant's principal place of residence located at 3779 Elmira Street in the City of Claremont, a second which will convey title - 5 - in the Project and a third which will convey title in certain property owned by the Participant generally located at 18674 Eleventh Street, in the unincorporated area of Bloomington, County i of San Bernardino all as more fully provided in Section 312 hereof. The Agency' s obligation with respect to the execution and provision of the Agency Guaranty shall become binding only upon written approval by the Agency of the refinancing documents, submitted by Valley Bank and at such time as the Agency has received (i) an executed original of this Agreement, (ii) the Personal Guaranties (iii) recorded copies of the three (3) Deeds of i Trust referenced hereinabove and (iv) the Guaranty Fee. III. [300] FINANCING OF THE SITE A. [301] Financing by Participant Participant and Agency agree that the central purpose of this Agreement is to provide for the refinancing of the existing Arco AM/PM Gas Station in order to ensure continued business and sales volumes related to the Site. The Project shall enable the i Participant to retain employment opportunities in the Project Area through the provision of approximately twelve (12) jobs on the Site. 1. [302] Cost of Project The Agency shall have no obligations, other than as expressly set forth herein, with respect to the funding of the Project or the completion of the refinancing. The Participant - 6 - shall pay any and all costs associated with the provision of the Participant Loan as well as any and all costs and fees associated with the establishment of an escrow as well as the provision of the Agency Guaranty and the preparation and recordation of necessary documents. 2 . (303] Bodily InIury and Property Damage Insurance Participant shall defend, assume all responsibility for and hold the Agency, the City and their respective officers, agents and employees, harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and costs) , which may be caused by any of Participant' s activities related to this Agreement, whether such activities or performance thereof be by the Participant or anyone directly or indirectly employed or contracted with by Participant and whether such damage shall accrue or be discovered before or after termination of this Agreement. Participant shall take out and maintain a comprehensive liability and property damage policy in the amount of one Million Dollars ($1, 000, 000) combined single limit, including contractual public liability, and shall protect City and Agency from claims for damages arising out of Participants activities under this Agreement as described hereinabove, until two (2) years after the expiration of the Agency Guaranty. Participant shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions - 7 - 0 of the insurance coverage. This countersigned certificate shall name the City and Agency and their respective officers, agents, and employees as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligation on the part of the carrier to notify City and the Agency of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination. Coverage provided hereunder by Participant shall be primary insurance and not contributing with any insurance maintained by Agency or City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City and Agency. Participant shall furnish or cause to be furnished to Agency evidence satisfactory to Agency that any contractor with whom it has contracted for the performance of work on the Site or otherwise pursuant to this Agreement carries workers ' compensation insurance as required by law. 3 . (304] City and Other Governmental Agency Permits Prior to the provision of the Agency Guaranty, Participant shall, at its own expense, secure or cause to be secured any and all permits for all necessary on-site and off-site improvements or ongoing operations on the Site which may be required by the City or any other governmental agency having jurisdiction over such activities. - 8 - Nothing contained in this Agreement shall be deemed to be an approval by the City of any application or permit required to be obtained by Participant from the City. 4 . [305] Rights of Access For the purpose of assuring compliance with this Agreement, representatives of Agency and the City shall have the right of access to the Site, without charges or fees, at normal business hours for the purposes of ensuring compliance with this Agreement, so long as they comply with all safety rules. Such representatives of Agency or of the City shall be those who are so identified in writing by the Executive Director of Agency. Agency shall hold the Participant harmless from any bodily injury or related damages arising out of the activities of Agency and the City as referred to in this s Section 305 and resulting from the gross negligence or willful misconduct of the City or Agency. This Section 305 shall not be deemed to diminish or limit any rights which the City or Agency may have by operation of law irrespective of this Agreement. 5. [306] _Local , State and Federal Laws Participant shall carry out the Project and all related activities on the Site in conformity with all applicable laws, including all applicable federal and state labor standards; provided, however, Participant and its successors assigns, g , transferees, and lessees are not waiving their rights to contest any such laws, rules or standards. - 9 - 6. [307] Antidiscrimination Participant, for itself and successors and assigns, I agrees that in the operation of the business provided for in this Agreement, Participant shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, age, sex, marital status, handicap, national origin or ancestry. B. [308] Taxes , Assessments, Encumbrances and Liens Prior to expiration of the Agency Guaranty Participant shall not place or allow to be placed on the Site or any part thereof any mortgage, trust deed, encumbrance or lien without the express prior written consent of the Agency. Such written consent shall not be unreasonably withheld to the extent the Participant is seeking construction or permanent financing related to the Project. C. [309] Prohibition Against Transfer of the Site the Buildings or Structures thereon and Assignment of Agreement Prior to expiration of the Agency Guaranty, Participant shall not, except as permitted by this Agreement, without the prior written approval of Agency, make any total or partial sale, transfer, conveyance, assignment or lease of the whole or any part of the Site or of the buildings or structures on the Site. This prohibition shall not be deemed to prevent a transfer expressly permitted pursuant to Section 107 of this Agreement. In addition, Participant agrees that for a period of ten (10) Y ears from the date hereof, the Participant shall not move or relocate its - 10 - 0 business operations, presently located on the Site, to any location which is outside of the boundaries of the City of San Bernardino without the express prior written consent of the Agency, which consent shall be given only at the Agency's sole discretion. D. [310] Agency Guaranty; Deed of Trust 1. [311] Agency Guarantv The Agency shall execute the Agency Guaranty in substantially the form as attached hereto as Attachment No. 21 I which Agency Guaranty shall be in favor of the lender described therein. The Agency's obligation to guaranty the loan to the Participant for the purposes of completing the refinancing of the Site shall be limited to an amount equal to $1, 400, 000. 2 . [312] Deed of Trust/Personal Guaranties In consideration for the Agency's execution and provision of the Agency Guaranty, Participant shall cause to be executed personal guaranties of Mr. Fakhoury and Mrs. Fakhoury in the forms of Attachment Nos. 3 and 4 respectively as well as three (3) Deeds of Trust substantially in the Form of Attachment No. 5, attached hereto and incorporated herein by this reference. Said Deeds of Trust shall provide the Agency with an interest in the principal place of residence of Mr. Fakhoury located at 3779 Elmira Street in the City of Claremont, the property on which the Project is located and in certain other property of the Participant located at 18674 Eleventh Street, in the unincorporated area of Bloomington, County of San Bernardino and shall be subordinated only to such financing as the Agency may approve in writing. - 11 - E. [313] Mortgage, Deed of Trust Sale and Lease Back Financing; Rights of Holders 1. [314] No Encumbrances Except Mort a es Deeds of Trust or Sale and Lease-Back for Development Participant intends to obtain, and Agency agrees thereto, a loan for the undertaking of the Project in the amount of not to exceed $1, 400, 000. Participant shall not enter into any conveyance or lien for other financing without the prior written approval of Agency, which approval Agency may give in its sole discretion. Approval of such other conveyance or lien for financing by the Agency shall not constitute a subordination of the Deed of Trust related to the Project to such conveyance or lien without the express written approval of the Agency. The form of approval by Agency shall be in writing which references this Section 314, executed by the Executive Director of the Agency. In the event that the Agency fails to accept or reject such lender in writing within fifteen (15) days after written notice thereof is received by the Agency, such lender shall be deemed approved. I F. [315] Right of Agency to Satisfy Other Liens On The Site Prior to the expiration of the Agency Guaranty and after Participant has had written notice and has failed after a ` reasonable time, but in any event not less than fifteen (15) days, Y , to challenge, cure, adequately bond against, or satisfy any liens or encumbrances on the Site which are not otherwise permitted under this Agreement, Agency shall have the right but not the obligation - 12 - to satisfy any such liens or encumbrances and to seek indemnification therefor from the Participant. G. [316] Release of Deed of Trust Upon the expiration of the Agency Guaranty, Agency agrees to reconvey the Deed of Trust. Upon the recording of a reconveyance of the full Deed of Trust, any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Site shall not, as a result of such ownership, lease or acquisition, incur any obligation or liability under this Agreement except that such party shall be bound by the covenants set forth in Section 401 of this Agreement, which shall be applicable, each according to its terms. IV. [400] USES OF SITE A. [401] Uses - Covenants Running With the Land Participant covenants and agrees for itself, its successors, its assigns, and every successor in interest to the Site or any part thereof, that for a period of ten (10) years from the date of this Agreement, the Site will continue to be devoted to uses as an auto gas station and mini mart so long as such uses are still economically feasible under commercially reasonable standards. The foregoing covenant shall run with the land for ten (10) years commencing from the date of this Agreement. - 13 - Participant covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Participant itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. All deeds, leases or contracts pertaining to the Site shall contain or be subject to substantially the following nondiscrimination or non-segregation clauses: 1. In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, - 14 - location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land. " 2 . In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, that this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, handicap, age, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practices or practices of discrimination or segregation with reference to the selection, location, number, use I or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased. " r 3 . In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, creed, religion, sex, marital status, age, handicap, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such - 15 - practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the premises. " B. (402) Maintenance of the Site Participant shall maintain the Site and shall keep the I Site free from any accumulation of debris or waste materials. Participant further agrees to maintain the Site in a neat and attractive manner so as not to, in the reasonable determination of an appropriate officer of the City, be a public nuisance, or be detrimental to the health, safety and welfare of the public, or impair value of property within one thousand (1, 000) feet of the Site, and agrees that in the event Participant fails to do so, Agency may enter upon the Site for the purposes of performing necessary and desirable maintenance, that Participant will be responsible for the cost of any such maintenance undertaken by Agency, which shall be paid within thirty (30) days after receipt by Participant of written demand therefor. In addition, the Participant agrees that to the extent it is in violation of the provisions of this Section 402 , the Agency shall have a right to place a lien against the Site in an amount necessary to cover its costs associated with such violation. I�I 16 - 0 C. [403] Effect of Violation of the Terms and Provisions of this Agreement After Completion of Construction The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of Agency, its successors and assigns, as to those covenants which are for its benefit. The covenants contained in this Agreement shall remain in effect until the termination date of the Redevelopment Plan unless an earlier date is specified in this Agreement. The covenants against racial discrimination shall remain in perpetuity. Agency is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. The Agreement and the covenants shall run in favor of the Agency, without regard to whether Agency has been, remains or is an owner of any land or interest therein in the Site. Agency shall have the right, if the Agreement or covenants are breached, to exercise all rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of this Agreement and covenants may be entitled. - 17 - V. [500] GENERAL PROVISIONS A. [501] Notices Demands and Communications Between the Parties Written notices, demands and communications between Agency and Participant shall be sufficiently given if delivered by hand (and a receipt therefor is obtained or is refused to be given) or dispatched by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of Agency and Participant. Such written notices, demands and communications may be sent in the same manner to such other addresses as such party may from time to time designate by mail as provided in this Section 501. Any written notice, demand or communication shall be deemed received immediately if delivered by hand and shall be deemed received on the tenth day from the date it is postmarked if delivered by registered or certified mail. B. [502] Conflicts of Interest• Nonliabilit No member, official or employee of Agency or the City shall have any personal interest, direct or indirect, in this Agreement. No member, official or employee shall participate in any decision relating to the Agreement which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested. No member, official or employee of Agency or the City shall be personally liable to Participant, or any successor in interest, in the event of any default or breach by Agency or Participant, or for - 18 - any amount which may become due to Participant or its successor or on any obligations under the terms of this Agreement. i Participant represents and warrants that it has not paid or given, and shall not pay or give, any third party any money or other consideration for obtaining this Agreement. C. [503] Enforced Delay; Extension of Times of Performance In addition to specific provisions of this Agreement, performance by either party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to: war; insurrections; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; freight embargoes; governmental restrictions or priority; litigation; unusually severe weather, acts or omissions of another party; acts or failures to act of the City or any other public or governmental agency or entity (other than the acts or failures to act of Agency which shall not excuse performance by Agency) ; or any other causes beyond the control or without the fault of the party claiming an extension of time to perform. Notwithstanding anything to the contrary in this Agreement, an extension of time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of erforma p nce - 19 - i under this Agreement may also be extended in writing byJthe mutual agreement of Agency and Participant. Participant is not entitled pursuant to this Section 503 to an extension of time to perform because of past, present, or future difficulty in obtaining suitable temporary or permanent financing for the Site. D. [504] Inspection of Books and Records Agency has the right at all reasonable times to inspect the books and records of Participant pertaining to the Site as pertinent to the purposes of this Agreement. Participant has the right at all reasonable times to inspect the public records of Agency pertaining to the Site as pertinent to the purposes of the Agreement. VI. [600] DEFAULTS AND REMEDIES A. [601] Defaults - - General Subject to the extensions of time set forth in Section 503, failure or delay by any party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further - 20 - damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. B. [602] Legal Actions 1. [603] Institution of Legal Actions In addition to any other rights or remedies hereunder, Agency or Participant may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Any legal actions initiated pursuant to this Agreement or otherwise with respect to this subject matter must be instituted in the Superior Court of the County of San Bernardino, State of California, or in an appropriate municipal court in that county. 2 . [604] Applicable Law The laws of the State of California shall govern the interpretation and enforcement of this Agreement. 3 . [605] Acceptance of Service of Process In the event that any legal action is commenced by any party against another party, service of process on such party shall be made by personal service upon such party or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. - 21 - < r C. [606] Rights and Remedies are Cumulative Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by any other party. D. [607] Inaction Not a Waiver of Default Any failures or delays by any party in asserting any of its right and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies, or deprive any party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. E. [608] Remedies 1. [609] Damages If either Participant or Agency defaults with regard to any of the provisions of this Agreement, the non-defaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured or if a cure has not been commenced and is being diligently pursued to completion by the defaulting party within thirty (30) days after service of the notice of default, the defaulting party shall be liable to the I' other for any damages caused by such default, and the non- defaulting party shall have the right to seek specific performance and such other remedies as are available in law or equity. - 22 - 0 VII. [700] SPECIAL PROVISIONS A. [701] Submission of Documents to Agency. for Approval Whenever this Agreement requires Participant to submit any document to Agency for approval, which shall be deemed approved if not acted on by Agency within the specified time, said document shall be accompanied by a letter stating that it is being submitted and will be deemed approved unless rejected by Agency within the stated time. If there is not a time specified herein for such Agency action, Participant may submit a letter requiring Agency approval or rejection of documents within thirty (30) days after submission to Agency or such documents shall be deemed approved. B. [702] Successors in Interest The terms, covenants, conditions and restrictions of this Agreement shall extend to and shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of Participant and Agency. VIII. [800] ENTIRE AGREEMENT, WAIVERS This Agreement is executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement includes Attachments 1 through 5, which together with this Agreement constitute the entire understanding and agreement of the parties. f No private entity shall be deemed to be a third party beneficiary with respect to any provisions of this Agreement. - 23 - This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements among the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. All waivers of the provisions of this Agreement must be in writing by the appropriate authorities of the Agency and i Participant, and all amendments hereto must be in writing by the f appropriate authorities of Agency and Participant, except that the Executive Director of Agency may agree to non-substantive changes hereto with concurrence by Agency Counsel. Each individual signing below represents and warrants that he has the authority to execute this Agreement on behalf of and bind the party he purports to represent. IX. [900] TIME FOR ACCEPTANCE OF AGREEMENT BY AGENCY A. [901] Time for Acceptance This Agreement, when executed by Participant and delivered to Agency, must be authorized, executed and delivered by Agency on or before thirty (30) days after signing and delivery of this Agreement by Participant or this Agreement shall be void, except to the extent that Participant shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. The date of this Agreement shall be the date when it shall have been signed by the Agency as evidenced by the date first above shown. 24 - IN WITNESS WHEREOF, Agency and Participant have executed this Agreement on the day and date first above shown. "Agencyll REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Kenneth J. Henderson Executive Director APPROVED AS TO PROGRAM: Stafford W. Parker Deputy Director APPROVED AS TO FORM AND LEGAL CONTENT: By: eyto✓t pe ial Agency Couns 1 "Participant" RUBA ENTERPRISES, a California corpor do By: AtEef a ufff Title: SBEO/0001/OPA/RUBA 08130/94 2:20 jf I 25 - STATE OF CALIFORNIA ) S'(11-1 ss. COUNTY OF . On before me, personally appeared -�e(= e—me� (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(zT is/me- subscribed to the within instrument and acknowledged to me that he/-O�thigf executed the same in his`Yi.e-r-/tube authorized capacity(j,es') , and that by his/ t�ie-i7r signature(s) on the instrument the person(,%T, or the entity upon behalf of which the person,(,$) acted, executed the instrument. WITNESS my hand and official seal. (Seal) Signature , TAMARA N.TORRES i COMM.#976441 -s Notary Public—Cdiforn{o ` . SAN BERNARDINO COUNTY My Comm.Expires NOV 1,1946 STATE OF CALIFORNIA ) ss. I COUNTY OF ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Seal) Signature STATE OF CALIFORNIA ) ss. COUNTY OF ) On before me, personally appeared ' personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signatures) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Seal) Signature I ATTACHMENT NO. 1 LEGAL DESCRIPTION THAT PORTION OF SECTION 12, TOWNSHIP 1 NORTH, RANGE 5 WEST, SAN BERNARDINO MERIDI;UN, IN THE CITY OF SAN BERNARDINO, ACCORDING TO THE EXTENSION OF THE LINES OF THE OFFICIAL GOVERNMENT SURVEY EXTENDED INTO THE MUSCUPIABE RANCHO, AS PER MAP RECORDED IN BOOK 7, PAGE 23 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. BEGINNING AT THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND AS CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED OCTOBER 25, 1955 IN BOOK 3772, PAGE 93 OF OFFICIAL RECORDS, AND DESCRIBED AS PARCEL "C", SAID SOUTHWEST CORNER BEING ON THE EASTERLY LINE OF PALM AVENUE, 40 FEET WIDE, AS THE SAME NOW EXISTS; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL "C" SOUTH 420 19' 06" EAST, 174 FEET; THENCE SOUTH 270 40' 03" WEST PARALLEL WITH THE EASTERLY LINE OF SAID PALM AVENUE, 255.44 FEET; f THENCE NORTH 426 19' 06" WEST PARALLEL WITH SAID SOUTHERLY LINE OF PARCEL "C", 174 FEET TO A POINT IN THE EASTERLY LINE OF SAID PALM AVENUE; THENCE NORTHERLY ALONG THE EASTERLY LINE OF SAID PALM AVENUE, 255.44 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, BY DEED RECORDED AUGUST 20, 1958 IN BOOK 4582, PAGE 507, OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: THAT PORTION OF SECTION 12, TOWNSHP 1 NORTH, RANGE 5 SOUTH, SAN BERNARDINO MERIDIAN, ACCORDING TO THE EXTENSION OF THE LINES OF THE OFFICIAL GOVERNMENT SURVEY, EXTENDED INTO RANCHO MUSCUPIABE, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND AS CONVEYED TO THE STATR OF CALIFORNIA, BY DEED RECORDED OCTOBER 25, 1955 IN BOOK 3772, PAGE 93 OF OFFICIAL RECORDS, RECORDS OF SAID COUNTY, AND DESCRIBED AS PARCEL "C" IN THE ABOVE MENTIONED DEED, SAID SOUTHWEST CORNER BEING ON THE EASTERLY LINE OF PALM AVENUE, 40 FELT WIDE AS IT NOW EXISTS; THENCE ALONG THE SOUTHWEST LINE OF SAID PARCEL "C", SOUTH 42° 19' 06" EAST, 32.02 FEET; THENCE SOUTH 610 23' 07" WEST, 53.48 FEET TO SAID EASTERLY LINE OF PALM AVENUE, DISTANT ALONG SAID EASTERLY LINE SOUTH 270 15' 41" WEST 55.44 FEET FROM THE POINT OF BEGINNING; THENCE ALONG SAID EASTERLY LINE NORTH 270 15' 41" EAST, 55.44 FEET TO THE POINT OF BEGINNING. ATTACHMENT NO. 2 AGENCY GUARANTEE The REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, CALIFORNIA (the "Agency") hereby guarantees to Valley Bank ("Lender") , on the terms and conditions set forth hereinafter, the obligation of RUBA ENTERPRISES, a California corporation ("Debtor") , as more specifically described hereinafter. This Guaranty is subject to the following: 1. The Agency' s obligations to Lender are solely with respect to the debt incurred by Debtor by way of the promissory note and deed of trust entered into by and between Lender and Debtor, a true and correct copy of which is attached to this Guaranty as Exhibit "A" (the "Debt") . The Agency' s obligation hereunder shall not extend to any other obligation of Debtor to Lender, or any third party, whatsoever. 2 . The amount of the Agency's obligations to Lender shall not exceed One Million Four Hundred Thousand Dollars ($1, 400, 000) , less any payments made on account thereof by Debtor or any other party. Any obligation of the Agency hereunder shall cease upon payment in full of all principal and interest due under said note, regardless of the source of said payment. 3 . The obligations of the Agency under this Guaranty do not extend to any prior, contemporaneous or future debt owed' by Debtor to Lender. 4. Lender may not, without the prior written consent of the Agency, enter into any modification, amendment, waiver or other change in the terms, amount or conditions of the Debt, nor renew, extend, postpone or accelerate the time for payment or otherwise change the terms of the Debt, nor release any security held therefor. 5. Lender covenants that it will diligently exercise all rights accorded to it under the terms of Exhibit "A" or any collateral or security agreements held by Lender in connection therewith. 6. Lender expressly waives any right to seek to obtain in any manner whatsoever any asset of the Agency which may be in the possession of the Lender at any time, and agrees solely to exercise its rights under this agreement in accordance with the terms hereof. 7. In the event of any default by Debtor under the terms of the Debt, Lender agrees to provide the Agency with notice thereof within thirty (30) days of the event of said default, so as to enable the Agency to contact the Debtor and seek to obtain compliance by the Debtor with the terms of the Debt. Lender further agrees to provide reasonable notice, which shall not be ATT. 2 - Page 1 less than forty-five (45) days, prior to taking any action to declare a default under the terms of the Debt, accelerate the indebtedness referenced thereby, act upon any security held by Lender with respect to said indebtedness, or otherwise enforce any rights against the Debtor or the Agency. 8. The Agency reserves all rights of subrogation or indemnification against the Debtor with respect to any and all sums which may be paid by the Agency on behalf of the Debtor under the terms of this agreement. After any and all conditions precedent hereunder to the Agency's obligations hereunder have been satisfied, Lender may make written demand upon the Agency for payment of any unpaid portion of the Debt and the Agency shall make or cause to be made payment thereof in full within sixty (60) days of receipt of such written demand. 9. Notwithstanding any other provision of this Guaranty to the contrary, the total obligation of the Agency to Lender under the terms hereof shall not exceed the sum of $1,400, 000. 10. The Agency may not terminate its obligations under the provisions of this Guaranty until such time as the Debt has been paid in full or the amount then owed by the Agency pursuant hereto has been paid in full; provided, however, in the event (i) the Debtor has not been in default as set forth in the terms of the Promissory Note and Deed of Trust for a period of sixty (60) months from the date hereof and (ii) notice to the Agency pursuant to paragraph 8 above has not been delivered by the Lender after satisfaction of all conditions precedent demanding a draw of all or a portion of the principal amount hereof, then this Guaranty shall automatically expire and be of no further force and effect without any notice from the Agency to the Lender. il. In the event of litigation concerning the terms of this Guaranty, the prevailing party shall be entitled to reasonable attorneys ' fees. 12 . This Guaranty and the respective rights and obligations created hereby are subject to and are to be construed according to the laws of the State of California. 13 . Lender may assign its rights under this Guaranty, subject to providing fifteen days ' prior written notice thereof to the Agency. ATT. 2 - Page 2 14 . The Agency's obligations under this Agreement, notwithstanding any prior execution hereof by any representative of the Agency, are subject to the approval of the Community Development Commission, the legislative body of the Agency. Dated: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: KENNETH J. HENDERSON APPROVED AS TO FORM: Executive Director Special Agency Counsel ATT. 2 - Page 3 ATTACHMENT NO. 3 PERSONAL GUARANTY OF $1 , 400 , 000 NOTE I 1. For valuable consideration, the undersigned Atef Fakhoury (hereinafter called "Guarantor") unconditionally guaranties and promises to pay to the Redevelopment Agency of the City of San Bernardino (hereinafter called "Lender") or order, on demand, in lawful money of the United States, any and all indebtedness of Ruba Enterprises, a California corporation, as borrower, (hereinafter collectively called "Borrower") to Lender. The word "indebtedness" is used herein in its most comprehensive sense and includes any and all advances, debt, obligations, and liabilities of Borrower or any one or more of them, heretofore, now, or hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or i undetermined, and whether Borrower may be liable individually or jointly with others, or whether recovery upon such indebtedness may be or hereafter become barred by any statute of limitations, or whether such indebtedness may be or hereafter become otherwise unenforceable. 2 . The Lender has approved the use of funds in the amount of One Million Four Hundred Thousand Dollars ($1, 400, 000) for the benefit of the Borrower evidenced by a Loan Agreement (the "Agreement") and secured by this personal guaranty (the "Personal Guaranty") . The liability of Guarantor shall not exceed at any one time the sum of One Million Four Hundred Thousand Dollars ($1,400, 000) for principal, together with any and all interest upon the indebtedness or upon such part thereof as set forth in the Agreement. Notwithstanding the foregoing, Lender may permit the indebtedness of Borrower to exceed Guarantor's liability. This is a continuing guaranty relating to any indebtedness, including that arising under successive transactions which shall either continue the indebtedness or from time to time renew it after it has been satisfied. This Guaranty shall not apply to any indebtedness created after actual receipt by Lender of written notice of its revocation as to future transactions. Any payment by Guarantor shall not reduce his maximum obligation hereunder unless written notice to that effect be actually received by Lender at or prior to the time of such payment and agreed to in writing by Lender. 3 . The obligations hereunder are joint and several, and independent of the obligations of Borrower, and a separate action or actions may be brought and prosecuted against Guarantor whether action is brought against Borrower or whether Borrower be joined in any such action or actions and Guarantor waives the benefit of any statute of limitations affecting his liability hereunder or the enforcement thereof. ATT. 3 - Page 1 4 . Guarantor authorizes Lender, without notice or demand and without affecting his liability hereunder, from time to time to (a) renew, compromise, extend, accelerate, or otherwise change the time for g payment of, or otherwise change terms of the indebtedness or any part thereof, including increase or decrease of the rate or rates of interest thereon; (b) take and hold security for the payment of this Personal Guaranty or the indebtedness guaranteed, and exchange, enforce, waive, and release any such security; (c) apply such security and direct the order or manner of sale thereof as Lender in its discretion may determine; and (d) release or substitute any one or more of the endorsers or guarantors. Lender may, without notice, assign this Personal Guaranty in whole or in part. 5. Guarantor waives any right to require Lender to (a) proceed against Borrower; (b) proceed against or exhaust any security held by Borrower; or (c) pursue any other remedy in Lender's power whatsoever. Guarantor waives any defense arising by reason of any disability or other defense of Borrower or by reason of the cessation from any cause whatsoever of the liability of Borrower. Until all indebtedness of Borrower to Lender shall have been paid in full, even though such indebtedness is in excess of Guarantor's liability hereunder, Guarantor shall have no right of subrogation, and waive any right to enforce any remedy which Lender now has or may hereafter have against Borrower, and waive any benef it of, and any right to participate in any security now or hereafter held by Lender. Guarantor waives all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of this Guaranty and of the existence, creation or incurring of new or additional indebtedness. 6. No lien or right of setoff shall be deemed to have been waived by any act or conduct on the part of Lender, or by an neglect to exercise such right or setoff or to enforce such lien, or by any delay in so doing; and every right of setoff and lien shall continue in full force and effect until such right or setoff or lien is specifically waived or released by an instrument in writing executed by Lender. 7. Guarantor agrees to pay reasonable attorney's fees and all other costs and expenses which may be incurred by Lender in the enforcement of this Personal Guaranty. 8. This Personal Guaranty shall remain in effect until such time as all principal, accrued interest and penalty charges, as applicable, and all other costs, fees and expenses incurred by Lender pursuant to the Agreement secured by this Guaranty as executed and delivered by the Borrower to Lender have been paid in full. At such time as all financial responsibilities of Borrower to Lender have been extinguished, this Personal Guaranty shall be of no force and effect and shall be delivered to the Guarantor. ATT. 3 - Page 2 t� 9 . In all cases where there is but a single Borrower or a single Guarantor, then all words used herein in the plural shall be deemed to have been used in the singular where the context and construction so require; and when there is more than one Borrower named herein, or when this Personal Guaranty is executed by more than one Guarantor, the word "Borrowers" and the word "Guarantor" respectively shall mean all and any one or more of them. IN WITNESS WHEREOF, the undersigned Guarantor has executed this Personal Guaranty on , 1994 . GUARANTOR Atef Fakhoury ACCEPTED BY LENDER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Kenneth J. Henderson, Executive Director SBEO\0092\OPAIRUBA 8/30/94 2:20 jrf ATT. 3 - Page 3 ATTACHMENT NO. 4 PERSONAL GUARANTY OF 81 400 000 NOTE 1. For valuable consideration, the undersigned Maysoun Fakhoury (hereinafter called "Guarantor") unconditionally guaranties and promises to pay to the Redevelopment Agency of the City of San Bernardino (hereinafter called "Lender") , or order, on demand, in lawful money of the United States, any and all indebtedness of Ruba Enterprises, a California corporation, as borrower, (hereinafter collectively called "Borrower") to Lender. The word "indebtedness" is used herein in its most comprehensive sense and includes any and all advances, debt, obligations, and liabilities of Borrower or any one or more of them, heretofore, now, or hereafter made, incurred or created, whether voluntary or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether Borrower may be liable individually or jointly with others, or whether recovery upon such indebtedness may be or hereafter become barred by any statute of limitations, or whether such indebtedness may be or hereafter become otherwise unenforceable. 2 . The Lender has approved the use of funds in the amount of One Million Four Hundred Thousand Dollars ($1,400, 000) for the benefit of the Borrower evidenced by a Loan Agreement (the "Agreement") and secured by this personal guaranty (the "Personal Guaranty") . The liability of Guarantor shall not exceed at any one time the sum of One Million Four Hundred Thousand Dollars ($1,400, 000) for principal, together with any and all interest upon the indebtedness or upon such part thereof as set forth in the Agreement. Notwithstanding the foregoing, Lender may permit the indebtedness of Borrower to exceed Guarantor's liability. This is a continuing guaranty relating to any indebtedness, including that arising under successive transactions which shall either continue the indebtedness or from time to time renew it after it has been satisfied. This Guaranty shall not apply to any indebtedness created after actual receipt by Lender of written notice of its revocation as to future transactions. Any payment by Guarantor shall not reduce his maximum obligation hereunder unless written notice to that effect be actually received by Lender at or prior to the i time of such payment and agreed ed to in writing b g y Lender. 3 . The obligations hereunder are joint and several, and independent of the obligations of Borrower, and a separate action or actions may be brought and prosecuted against Guarantor whether action is brought against Borrower or whether Borrower be joined in any such action or actions and Guarantor waives the benefit of any statute of limitations affecting his liability hereunder or the enforcement thereof. ATT. 4 - Page 1 4 . Guarantor authorizes Lender, without notice or demand and without affecting his liability hereunder, from time to time to (a) renew, compromise, extend, accelerate, or otherwise change the time for payment of, or otherwise change terms of the indebtedness or any part thereof, including increase or decrease of the rate or rates of interest thereon; (b) take and hold security for the payment of this Personal Guaranty or the indebtedness guaranteed, and exchange, enforce, waive, and release any such security; (c) apply such security and direct the order or manner of sale thereof as Lender in its discretion may determine; and (d) release or substitute any one or more of the endorsers or guarantors. Lender may, without notice, assign this Personal Guaranty in whole or in part. 5. Guarantor waives any right to require Lender to (a) proceed against Borrower; (b) proceed against or exhaust any security held by Borrower; or (c) pursue any other remedy in Lender' s power whatsoever. Guarantor waives any defense arising by reason of any disability or other defense of Borrower or by reason of the cessation from any cause whatsoever of the liability of Borrower. Until all indebtedness of Borrower to Lender shall have been paid in full, even though such indebtedness is in excess of Guarantor' s liability hereunder, Guarantor shall have no right of subrogation, and waive any right to enforce any remedy which Lender now has or may hereafter have against Borrower, and waive any benefit of, and any right to participate in any security now or hereafter held by Lender. Guarantor waives all presentments, demands for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of this Guaranty and of the existence, creation or incurring of new or additional indebtedness. 6. No lien or right of setoff shall be deemed to have been waived by any act or conduct on the part of Lender, or by an neglect to exercise such right or setoff or to enforce such lien, or by any delay in so doing; and every right of setoff and lien shall continue in full force and effect until such right or setoff or lien is specifically waived or released by an instrument in writing executed by Lender. 7. Guarantor agrees to pay reasonable attorney's fees and all other costs and expenses which may be incurred by Lender in the enforcement of this Personal Guaranty. 8 . This Personal Guaranty shall remain in effect until such time as all principal, accrued interest and penalty charges, as applicable, and all other costs, fees and expenses incurred by Lender pursuant to the Agreement secured by this Guaranty as executed and delivered by the Borrower to Lender have been paid in full. At such time as all financial responsibilities of Borrower to Lender have been extinguished, this Personal Guaranty shall be of no force and effect and shall be delivered to the Guarantor. ATT. 4 - Page 2 9. In all cases where there is but a single Borrower or a single Guarantor, then all words used herein in the plural shall be deemed to have been used in the singular where the context and construction so require; and when there is more than one Borrower named herein, or when this Personal Guaranty is executed by more than one Guarantor, the word "Borrowers" and the word "Guarantor" respectively shall mean all and any one or more of them. IN WITNESS WHEREOF, the undersigned Guarantor has executed this Personal Guaranty on 1994 . GUARANTOR Maysoun Fakhoury ACCEPTED BY LENDER: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Kenneth J. Henderson, Executive Director SBEO\0092\OPA\RUBA 8/30/94 2:20 jrf ATT. 4 - Page 3 ATTACHMENT NO. 5 I ` RECORDING REQUESTED BY ) 1 AND WHEN RECORDED MAIL TO: ) (Space Above for Recorder' s Use) DEED OF TRUST WITH ASSIGNMENT OF RENTS Deed of trust made on , 1994 by Ruba Enterprises, Inc. , hereinafter called "Trustor" , whose address is 5985 N. Palm Avenue, San Bernardino, California 92407, to hereinafter referred to as "Trustee" , whose business address is f San Bernardino, California , in favor of the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, hereinafter referred to as "Beneficiary" , whose business address is 201 North "E" Street, Third Floor, San Bernardino, California 92401 . Trustor irrevocably grants, transfers, and assigns to Trustee in trust, with power of sale, all that property, including all easements and rights of way used in connection therewith or as a means of access thereto, in the City of San Bernardino, County of San Bernardino, State of California, described as follows : That certain property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as : SEE ATTACHMENT NO. 1 together with the rents, issues and profits thereof, subject however to the right reserved by Trustor in Paragraph B-16 hereof to collect and apply such rents, issues and profits, prior to any default hereunder; for the purpose of securing performance in a timely manner of all of Trustor' s obligations under that certain Owner Participation Agreement dated as of (the "OPA") and performance of each agreement to Trustor incorporated herein by reference or contained herein. ATT. 5 - Page 1 A. To protect the security of this Deed of Trust, Trustor agrees : 1 . To maintain the property in good condition and repair; not to remove or demolish any building or improvement thereon; to complete promptly in workmanlike manner any improvement hereafter constructed thereon and to restore promptly in workmanlike manner any improvement thereon that is damaged or destroyed, and to pay when due all costs incurred therefor or in connection therewith; to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property; not to commit or permit any waste thereof or any act upon the property in violation of law or of covenants, conditions or restrictions affecting the property. 2 . To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and also, if at any time Beneficiary or Trustee is a party to or appears in any such action or proceeding, or in any action or proceeding to enforce any obligation hereby secured, to pay all cost and expenses paid or incurred by them or either of them in connection therewith, including, but not limited to, cost of evidence of title and attorneys' fees in a reasonable SUM. 3 . To pay (a) at least ten (10) days before delinquency, all taxes and assessments affecting the property, all assessment upon water company stock, and all rents, assessments and charges for water appurtenant to or used in connection with the property; (b) when due, all encumbrances, charges and liens, with interest, on the property or any part thereof, which appear to be prior or superior hereto; and (c) all costs, fees and expenses of this trust . 4 . If Trustor fails to make any payment or to do any act as herein provided, then Beneficiary or Trustee (but without obligation so to do, and with or without notice to or demand upon Trustor, and without releasing Trustor from any obligation hereof) may (a) make or do the same in such manner and to such extent as either deems necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the property for such purpose; (b) appear in or commence any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or compromise any encumbrance, charge or lien that, in the judgment of either, appears to be superior hereto; and in exercising any such power, Beneficiary or Trustee may incur necessary expenses, including reasonable attorneys' fees . S . To pay immediately and without demand all sums expended hereunder by Beneficiary or Trustee, with interest from date of expenditure at the annual rate of five percentage points over Bank of America' s published prime rate. ATT. 5 - Page 2 B. It is mutually agreed that : I 1 . Any award of damages made in connection with the condemnation for public use of or injury to the property or any part thereof is hereby assigned and shall be paid to Beneficiary, who may apply or release such moneys received therefor upon any indebtedness secured hereby in such order as Beneficiary determines, or at the option of Beneficiary the entire amount so received or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 2 . The acceptance by Beneficiary of any payment less than the amount then due shall be deemed an acceptance on account only and shall not constitute a waiver of the obligation of Trustor to pay the entire sum then due or of Beneficiary' s right either to require prompt payment of all sums then due or to declare default. The acceptance of payment of any sum secured hereby after its due date will not waive the right of Beneficiary either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. No waiver of any default shall be a waiver of any preceding or succeeding default of any kind. 3 . At any time upon the occurrence of a default, without liability therefor and with or without notice, upon written request of Beneficiary and presentation of this deed for endorsement, and without effecting the personal liability of any person, Trustee may reconvey any part of the property, consent to the making of any map or plat thereof, join in granting any easement or join in any extension agreement or any agreement subordinating the lien or charge thereof . 4 . Upon written request of Beneficiary, surrender of this deed to Trustee for cancellation and retention, and payment of its fees, Trustee shall reconvey, without warranty the property then held hereunder. The recitals in such reconveyance shall be conclusive proof of the truthfulness thereof . The grantee may be designated in such reconveyance as "the person or persons legally entitled thereto. " 5 . Trustor may give such notice to Beneficiary at any time before there is a Trustee' s sale of the property. At any time Trustor is in default in payments to be made to Beneficiary hereunder, any amounts paid to and received by Beneficiary for execution of releases pursuant to the terms of this paragraph after notice of default and election to sell has been recorded shall not, unless the requirements of Section 2924c of the Civil Code are fully met by or on behalf of Trustor, waive the right of Beneficiary to continue its plans to have the property sold, nor shall they have any effect on the exercise by Beneficiary of the acceleration privilege contained herein, except to entitle the person effecting such payment to the release of the property for which the release amount was paid, and insofar as Beneficiary is concerned, to constitute a credit against the secured debt . ATT. 5 - Page 3 6 . If Trustor or any subsequent owner of the property covered hereby shall occupy the property, or any part thereof, after any default, Trustor or such owner shall pay to Beneficiary in advance on the first day of each month a reasonable rental for the premises so occupied. On failure to pay such reasonable rental, Trustor or such owner may be removed from the premises by summary dispossession proceedings or by any other appropriate action or proceeding. 7 . If default is made in performance of any agreement hereby secured, then Beneficiary, with or without notice to Trustor, may institute suit for the foreclosure of this deed, or by delivering to Trustee a written declaration of default and demand for sale, as well as a written notice of default and of election to cause the property to be sold, which notice Trustee shall cause to be filed for record. If such declaration is delivered to Trustee, Beneficiary shall deposit with Trustee this deed, and all documents evidencing expenditures secured hereby. 8 . After the time then required by law has elapsed after recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, with or without demand on Trustor, shall sell the property at the time and place fixed in the notice of sale, either as a whole or in separate parcels and in such order as Trustee determines, at public auction, to the highest bidder, for cash in lawful money of the United States, payable at the time of sale. Trustee may postpone from time to time sale of all or any portion of the property by public announcement at the time and place of sale originally fixed or at the last preceding postponed time. Trustee shall deliver to the purchaser its deed conveying the property sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Trustor, Trustee, Beneficiary or any other person may purchase at the sale. 9 . After deducting all costs, fees and expenses of Trustee and of this trust, including cost of evidence of title and reasonable attorneys' fees in connection with sale, Trustee shall apply the proceeds of sale to payment of (a) all sums expended under the terms hereof and not theretofore repaid, with accrued interest at five percentage points over Bank of America' s published prime rate per annum, and (b) all other sums then secured hereby in such order as Beneficiary, in the exercise of its sole discretion, directs . The remainder, if any, shall be paid to the person or persons legally entitled thereto. 10 . Before Trustee' s sale, Beneficiary may rescind such notices of default and of election to cause the property to be sold by delivering to Trustee a written notice of rescission, which notice, when recorded, shall cancel any prior declaration of default, demand for sale and acceleration of maturity. The exercise of such a right of rescission shall not constitute a waiver of any default then existing or subsequently occurring, or impair the right of Beneficiary to deliver to Trustee other ATT. 5 - Page 4 declarations of default and demands for sale or notices of default and of election to cause the property to be sold, or otherwise affect any provision of the secured note or of this deed or any of the rights, obligations or remedies of Beneficiary or Trustee I hereunder. 11. Beneficiary may, from time to time as provided by statute, or by a writing signed and acknowledged by him and recorded in the office of the county recorder of the county in which the land or such party thereof as is then affected by this deed of trust is situated, appoint another trustee in stead and of Trustee herein named; and thereupon, the Trustee herein named shall be discharged, and the trustee so appointed shall be substituted as Trustee hereunder with the same effect as if originally named Trustee herein. 12 . If two or more persons are designated as Trustee herein, any or all powers granted herein to Trustee may be exercised by any of such persons if the other person or persons is unable, for any reason, to act . Any recital of such inability in any instrument executed by any of such persons shall be conclusive against Trustor, his heirs and assigns. 13 . All leases of any structures on the Site which utilize the Project as defined in the OPA, now or hereafter affecting the property are hereby assigned and transferred to Beneficiary by Trustor. Trustor hereby covenants that none of such leases will be modified or terminated without the written consent of Beneficiary. 14 . If a default is made in the performance of any agreement hereby secured, Trustor when requested to do so, shall give such further written assignments of rents, royalties, issues and profits; of all security for the performance of leases; and of all money payable under any option to purchase, and shall give executed originals of all leases, now or hereafter on or affecting the property. 15 . Trustor reserves the right, prior to any default in payment of any indebtedness or performance of any obligation secured hereby, to collect all such rents, royalties, issues and profits, as but not before they become due. Upon any such default, Trustor' s right to collect such moneys shall cease, not only as to amounts accruing thereafter, but also as to amounts then accrued and unpaid. In the event of default, Beneficiary, with or without notice and without regard to the adequacy of security for the indebtedness hereby secured, either in person or by agent, or by a receiver to be appointed by the court, (a) may enter upon and take possession of the property at any time and manage and control it in Beneficiary' s discretion, and (b) with or without taking possession, may sue for or otherwise collect the rents, issues and profits thereof, whether past due or coming due thereafter, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys' fees, upon any obligation secured hereby and in such order as Beneficiary ATT. 5 - Page 5 determines. None of the aforesaid acts shall cure or waive any default hereunder or invalidate any act done pursuant to such notice. Beneficiary shall not be required to act diligently in the care or management of the property or in collecting any rents, I royalties or other profits that it is hereby authorized to collect, and shall be accountable only for sums actually received. 16 . Without affecting the liability of Trustor or of any other party now or hereafter bound by the terms hereof, from time to time and with or without notice, Beneficiary may release any person now or hereafter liable for performance of such obligation, and may extend the time for payment or performance, accept additional security, and alter, substitute or release any security. 17. In any judicial action brought to foreclose this deed or to enforce any right of Beneficiary or of Trustee hereunder, Trustor shall pay to Beneficiary and to Trustee 'f attorneys, fees in a reasonable sum, to be fixed by the court . 18 . No remedy hereby given to Beneficiary or Trustee is exclusive of any other remedy hereunder or under any present or future law. 19 . The pleading of any statute of limitations as a defense to any and all obligations secured by this deed is hereby waived, to the full extent permissible by law. 20 . Trustor shall, upon request made by Beneficiary, furnish the Beneficiary with annual statements covering the operations of the property. 21 . Beneficiary may collect a "late charge" not to exceed an amount equal to five percent (50) on the amount past due and remaining unpaid on any installment that is not paid within ten (10) days from the due date thereof, to cover the extra expense involved in handling delinquent payments . 22 . This deed applies to, inures to the benefit of and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, successors in interest, and assigns . The term "Beneficiary" means the owner and holder, including pledgees, of the Agreement secured hereby, whether or not named as Beneficiary herein. In this deed, whenever the context so requires, the masculine gender includes the feminine and neuter, and the singular number includes the plural, and all obligations of each Trustor hereunder are joint and several . 23 . Trustee accepts this trust when this deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary or Trustee is a party unless brought by Trustee. ATT. 5 - Page 6 Trustor requests that a copy of notice of default and of any notice of sale hereunder shall be mailed to him at the address set out opposite his name, immediately below: MAILING ADDRESSES FOR NOTICES: RUBA ENTERPRISES as Trustor: 5985 N. Palm San Bernardino, California 92407 Attn: Atef Fahoury ATT. 5 - Page 7 Executed at San Bernardino, California, on the date first above written. RUBA ENTERPRISES a California corporation By: By: Atef Fakhoury Title: Owner I ATT. 5 - Page 8 r P'1 STATE OF CALIFORNIA ) ss. COUNTY OF ) On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signatures) on the instrument the person(s) , or the entity upon behalf of which the person (s) acted, executed the instrument . WITNESS my hand and official seal . (Seal) Signature Executed at San Bernardino, California, on the date first above written. as Trustor By: Title :