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HomeMy WebLinkAboutR21-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Gary Van Osdel Executive Director SUBJECT: 2003 DISPOSITION AND DEVELOPMENT AGREEMENT WITH STAN ROBBINS FOR EXCHANGE OF PROPERTY LOCATED AT 450 NORTH "F" STREET AND PURCHASE OF AGENCY PROPERTY LOCATED AT 532 NORTH "D" STREET DATE: October 10, 2003 ORiGiNAL ..__________u_______________________________~_________-----------_.----------------------.-------------------~------------------------------------------------------------ Svnonsis of Previons Commission/Conncil/Committee Actionls): In August 2003, the Community Development Commission approved the negotiations for the exchange of APN 0134- 101-09 and 10 located at 450 North F" Street, and the disposition of Agency-owned property, APN 0134-081-10-22 and 23, located at 532 North "D" Street. --------------------------------------------------------.-------------------------------------------.---------------------------------------------------------------------------- Recommended Motionls): OPEN/CLOSE PUBLIC HEARING ICommunitv Develonment Commission) MOTION A: A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (I) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL, (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS, AND (3) AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND STAN ROBBINS lMavor and Commou Council) MOTIONB: A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (I) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL AND (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS _________________________________________________________..n_____________________________________n____________________.____________________________________________ Contact Person(s): Gary Van Osdel Central City North Phone: (909) 663-1044 Project Area(s) Ward(s): 1st Supporting Data Attached: I!'l Staff Report I!'l Resolution(s) I!'l Agreement(s)/Contract(s) 0 Map(s) 0 Letters See Fiscal FUNDING REQUIREMENTS Amount: $ Impact Source: Budget Authority: SIGNATURE: tr..... ) Gary Van, ' Executive Director -------------------------~_......_----_._---------_._---------------.-------------------.-------------------------------.--------------------------------------- Commission/Council Notes: ~,e coc-l-.7~>'-"31 ~ obi --z.c::a 3 - '2 \ 'I ----------------------------------------------------------.-----..--------------------.------------------------------------------------------------------------------ P:\Agendas\Comrn Dev Commission\CDC 2003\03-10-20 532 N D 51 CDC SR,doc COMMISSION MEETING AGENDA Meeting Date: 10/2012003 Agenda Item Number: R..:J.-/ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT 2003 Disposition and Development Al!reement with Stan Robbins for Exchanl!e of Property Located at 450 North "F" Street and Purchase of Al!encv Property Located at 532 North "D" Street BACKGROUND/CURRENT ISSUE: In July of 1990, the Agency purchased the property located at 532 North "D" Street (APN 0134-081- 10, 22 and 23) consisting of 46,500 square feet of land and a 4,680 square foot building ("Agency Property"). The Mexican Consulate leased the Agency Property from 1991 to 1999. Since the Mexican Consulate moved, there have been several tenants in and out of the Agency Property and several non-performing offers to purchase. Presently the Agency Property is vacant. The Agency is making every effort to improve the downtown area and attract new development to the site next to the Cinema Star and California Theater. It is Staffs opinion that the vacant, undeveloped commercial 23,274 square foot parcel of land (APN 0134-101-09 and 10) located at 450 North "F" Street ("Robbins Site") would be an asset and enhance the Agency's goal of improving downtown. Furthermore, the Robbins Site could be used to supplement the parking for both theaters. In July 2003, Agency Staff approached the property owner of the Robbins Site, Stan Robbins ("Robbins"), to see if he would be interested in selling the Robbins Site to the Agency. Robbins indicated that he would like to do an exchange of properties. Robbins' offer consisted of conveying to the Agency the Robbins Site in exchange for the purchase of the Agency Property. Following the Community Development Commission's authorization to negotiate with Robbins for the exchange of the Robbins Site and the disposition of the Agency Property, Staff has had both properties appraised and a phase one environmental analysis completed for the Robbins Site. In August 2003, the Robbins Site was appraised at $150,000 and in March 2003, the Agency Property was appraised at $480,000. Consequently, the attached 2003 Disposition and Development Agreement by and between Agency and Stan Robbins, an Individual ("DDA") has been prepared for Agency and Commission consideration. The DDA provides for the Agency to simultaneously acquire the Robbins Site for the value of $150,000 and transfer and exchange the Agency Property to Robbins for the exchange value of $480,000. The DDA further provides that the exchange value of the Robbins Property ($150,000) will be applied against the exchange value of the Agency Property ($480,000) and for the payment by Robbins to the Agency for the exchange and transfer of the Agency Property to Robbins in the amount of $330,000. Robbins has paid to the Agency a $5,000 deposit which will be applied towards the Agency Property remaining balance of $330,000. The Agency will secure the remaining purchase price ("debt") by a holding a first trust deed and a note in the amount of $325,000 on the Agency Property. The promissory note will bear an interest rate of 6% per annum, based on a 25 year amortization schedule with the balance of principal and interest due five (5) years from the close of escrow ("maturity date"). Therefore, Robbins will make a monthly payment to the Agency in the --------_._---------------------..----------------~----------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2003\03-10-20 532 N D 51 CDC SR.doc COMMISSION MEETING AGENDA Meeting Date: 10/2012003 Agenda Item Number: /?..J-I Economic Development Agency Staff Report Stan Robbins DDA Page 2 amount of $2,093.98 until the maturity date, at which time the remaining principle and interest payment will be due in full to the Agency ("balloon payment"). Robbins intends to occupy and maintain the Agency Property and to possibly lease offices to various businesses within the Community. With regard to the Robbins Site, Agency Staff intends to continue to leave the Robbins Site vacant until such time as the Agency has determined the final reuse of the Robbins Site, which could include using it for supplemental parking to accommodate both theaters. In conclusion, Agency Staff has prepared the required 33433 Summary Report (which is on file with the Agency Secretary) concluding that the transfer and exchange of the Agency Property and the concurrent purchase of the Robbins Site will assist in the elimination of blight, encourage reinvestment and redevelopment of the Central City North Project Area; will place the Agency Property back on the tax roles; eliminate maintenance costs for the present Agency Property; and create additional employment opportunities for community residents. The Summary Report further outlines the costs of the proposed DDA, the value of the interest being conveyed, determined at the highest and best uses permitted under the Redevelopment Plan, and how the transaction will assist in the elimination of blight within the project area. ENVIRONMENTAL IMPACT: None. FISCAL IMPACT: Based on the provisions ofthe DDA, the Agency will receive the Robbins Site valued at $150,000, a $5,000 cash deposit and a $325,000 note at the interest rate of 6% for the sale of the Agency Property. This is equal or greater than the fair market value of the Agency Property of $480,000. RECOMMENDATION: That the Community Development Commission and Mayor and Common Council adopt the attached Resolutions. __________~___________.________________________________d_____________________________________________________------------------------------------ P:\Agendas\Comm Dev CommissioR\COC 2003\03-10-20 532 N D St COC SR.doc COMMISSION MEETING AGENDA Meeting Date: 10/20/2003 Agenda Item Number: /f..J.. J ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARD1tfOf/V...."'..i?/T., C:J u er f!P!< INTER-OFFICE MEMORANDU~ OCT 22 P3 :08 FROM: Michelle Taylor, Senior Secretary, City Clerk's Office -nJfM:argaret Parker, Secretary TO: SUBJECT: Executed Document DATE: October 21, 2003 Enclosed is the fully executed 2003 Disposition and Development Agreement by and between Redevelopment Agency of the City of San Bernardino and Stan Robbins, An Individual. Please let me know if you have any questions. Thank you, Margaret Enclosure cc: Barbara Lindseth (with Original Executed Agreement) Barbara Sharp (with Copy of Agreement) Ann Harris (with Copy of Agreement) r- '"""2 ...... I 3 '-' 14 C,25 3 t~f1f RESOLUTION NO. A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BER."IARDINO (1) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL, (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS, AND (3) AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND STAN ROBBINS 4 5 6 7 8 WHEREAS, the Community Development Commission of the City of San Bernardino 9 (the "Community Development Commission") is the governing board of the Redevelopment 10 Agency of the City of San Bernardino (the "Agency"); and II WHEREAS, the Agency desires to acquire certain real property (the "Robbins 12 Property") owned by Stan Robbins, and his assigns ("Robbins") in exchange for certain real property (the "Agency Property") owned by the Agency, plus cash payable to the Agency in an amount equal to the difference between the appraisal value of the Robbins Property and the 15 Agency Property as set forth in that certain agreement by and between Robbins and the 16 Agency entitled "Disposition and Development Agreement" (the "DDA"); and 17 WHEREAS, the Agency Property is located at 532 North D Street within the Central 18 City North Redevelopment Project Area and is improved with an approximately 4680 square 19 foot office commercial building; and 20 WHEREAS, an appraisal of the Agency Property was performed in March 2003 by Inland Empire Consultant, Inc. (the "Appraiser"); and 21 22 WHEREAS, according to the report dated March 19, 2003 (the "Agency Appraisal 23 Report"), prepared by the Appraiser, the fair market value of the Agency Property is 24 $480,000,00; and P:'Agenda,.ResollllionsIRe.olulions\2003,03.IO.20 532 N D Sl CDC Re,o.doc 1"""'1 ~2 C3 14 C'5 WHEREAS, the Robbins Property is located at 450 North F Street within the Central City North Redevelopment Project Area and is vacant land; and 3 WHEREAS, an appraisal of the Robbins Property was performed in August 2003 by 4 the Appraiser; and 5 WHEREAS, according to the report dated August 6, 2003 (the "Robbins Appraisal 6 Report"), prepared by the Appraiser, the fair market value of the Robbins Property is 7 $150,000.00; and 8 WHEREAS, the Agency intends to enter into the DDA pursuant to which the Agency 9 wilI, simultaneously with its acquisition and exchange of the Robbins Property from Robbins 10 for the value of $150,000.00, transfer and exchange the Agency Property to Robbins for the 11 exchange value of $480,000.00; and 12 WHEREAS, the DDA further provides that the exchange value of the Robbins Property will be applied against the exchange value of the Agency Property and for the payment by Robbins to the Agency in cash of the balance due for the exchange and transfer of the Agency 15 Property to Robbins in the amount of $330,000 after such exchange value credit is recognized; 16 and 17 WHEREAS, an evaluation of the potential environmental effects of the simultaneous 18 exchange of the Agency Property and the Robbins Property is exempt from the California Environmental Quality Act ("CEQA") and the CEQA Guidelines developed thereunder (the 19 20 "CEQA Guidelines"); and 21 WHEREAS, pursuant to Section 1530 I of the CEQA Guidelines the exchange of the 22 Robbins Property and the Agency Property, respectively under the DDA, is a Class I 23 categorical exemption under the CEQA Guidelines as there will be no expansion of use of the 24 Agency Property by Robbins because the office building is already in existence and no further development is needed or contemplated upon acquisition, and the Agency plans to hold the 2 P:"Agcnda,',Resollllions\RcsoI1l110Ils'.l00310J-10-20 532 N D 51 CDC Resodoc r~l '--'2 Cl3 ]4 20 21 22 23 24 r ,5 '- Robbins Property upon acquisition as an unimproved property asset of the Agency until such a time as the Agency has determined the final re-use of the Agency Property; and 3 WHEREAS, the exchange of the Robbins Property and the Agency Property under the 4 DDA will not expand the existing use of either property and no requirement of an additional 5 environmental review or further environmental review of the exchange of the real property is 6 necessary; and 7 WHEREAS, the exchange and acquisition of the Agency Property by Robbins and the 8 exchange and acquisition of the Robbins Property by the Agency is consistent with the Central 9 City North Redevelopment Plan; and ]0 WHEREAS, it is appropriate for the Community Development Commission to approve 11 the acquisition of the Robbins Property from Robbins and the disposition of the Agency ]2 Property to Robbins as set forth in the DDA and this Resolution. IS NOW, THEREFORE, THE COMMU1\TIY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE Al\TD ORDER, AS FOLLOWS: 16 Section I. This Resolution is adopted in furtherance of the provisions of Health & 17 Safety Code Section 33433 ("Summary Report"). Said Summary Report is on file with the 18 Agency Secretary. 19 Section 2. The Community Development Commission has conducted a full and fai public hearing regarding the disposition and exchange of the Agency Property for the Robbin Property pursuant to the terms and conditions of the DDA. The total value and consideratio realized by the Agency under the DDA for the exchange and disposition of the Agency Propert and the Robbins Property is not less than the fair market value of the Agency Property at it highest and best use in accordance with the Redevelopment Plan. The Community Developmen Commission hereby approves the simultaneous exchange of the Agency Property and th 3 P:\Agenda5\Re5;Jlulions\ResoJulions'1003,03-1O-20 532 N D 51 CDC Reso,do~ cI 2 Robbins Property on the terms set forth in the DDA. The Community Development Commissio 7 Section 3. The Community Development Commission finds that the exchange of th hereby approves the DDA in the form as presented at the meeting at which this Resolution i 3 adopted. The Executive Director of the Agency is hereby authorized and directed to execute th 4 DDA on behalf of the Agency, together with such technical and non-material conformin 5 changes as may be recommended by Agency Counsel. The DDA as hereby approved shall hav 6 no force or effect until it has been executed by the Executive Director of the Agency. 8 real property as contemplated under the DDA will not expand the existing use of either propert 9 and no requirement of an additional environmental review or further environmental review of th 10 exchange of the real property is necessary as provided for in CEQA Guidelines Section 15301. II The Executive Director of the Agency hereby authorized and directed to prepare and file wit 12 County Clerk, the appropriate form of a Notice of Exemption in connection with the adoption 0 r13 this Resolution. '-'14 Section 4. 15 /11 16 /11 17 /11 18 11/ 19 11/ 20 11/ 21 /11 22 11/ 11/ 23 11/ 24 /11 25 '- The Resolution shall become effective immediately upon its adoption. 4 P-Agcndas\ResohlllOllS\Resolullonsl200J,03-IO.20 511 N 0 $1 CDC Rc.o doc c~ 3 A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO (1) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL, (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS, AND (3) AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR TO EXECUTE THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND STAN ROBBINS 4 5 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the 8 Community Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the day of ,2003, by the following vote to wit: 10 Commission Members: Nays Abstain Absent Ayes I] ESTRADA LONGVILLE MCGINNIS 12 C1.3 DERRY 14 "..-" 25 L ]5 SUAREZ ANDERSON MC CAMMACK 16 17 18 Secretary 19 The foregoing resolution is hereby approved this day of ,2003. 20 21 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 22 23 I Content: 24 5 P:'Agenda,\Rcwll.llions\RcsolullOns',lOOJ\OJ-l0-20 532 to; D SI CDC Resodoc ,,_ 1 , .......2 rl3 '-'14 f'" 25 '- 3 t(Q)(p1f RESOLUTION NO. A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (I) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BE~"'ARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL AND (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS 4 5 6 7 WHEREAS, the City of San Bernardino, California (the "City") is a municipal 8 corporation and charter city, duly organized and existing pursuant to the provisions of the 9 constitution of the State of California; and 10 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") II desires to acquire certain real property (the "Robbins Property") owned by Stan Robbins, and 12 his assigns ("Robbins") in exchange for certain real property (the "Agency Property") owned by the Agency, plus cash payable to the Agency in an amount equal to the difference between the appraisal value of the Robbins Property and the Agency Property as set forth in that certain 15 agreement by and between Robbins and the Agency entitled "Disposition and Development 16 Agreement" (the "DDA"); and 17 WHEREAS, the Agency Property is located at 532 North D Street within the Central 18 City North Redevelopment Project Area and is improved with an approximately 4680 square 19 foot office commercial building; and 20 WHEREAS, an appraisal of the Agency Property was performed in March 2003 by 21 Inland Empire Consultant, Inc. (the "Appraiser"); and 22 WHEREAS, according to the report dated March 19, 2003 (the "Agency Appraisal 23 Report"), prepared by the Appraiser, the fair market value of the Agency Property is 24 $480,000.00; and Pv\gcndas,ResolulIons\Rcsolutions'l003\03-10-20 532:\ D SI MCC Rcso.doc rl ""- 2 Cl3 14 ,"""" ?oS '- WHEREAS, the Robbins Property is located at 450 North F Street within the Central City North Redevelopment Project Area and is vacant land; and 3 WHEREAS, an appraisal of the Robbins Property was performed in August 2003 by 4 the Appraiser; and 5 WHEREAS, according to the report dated August 6, 2003 (the "Robbins Appraisal 6 Report"), prepared by the Appraiser, the fair market value of the Robbins Property is 7 $150,000.00; and 8 WHEREAS, the Agency intends to enter into the DDA pursuant to which the Agency 9 will, simultaneously with its acquisition and exchange of the Robbins Property from Robbins 10 for the value of $150,000.00, transfer and exchange the Agency Property to Robbins for the 11 exchange value of $480,000.00; and 12 WHEREAS, the DDA further provides that the exchange value of the Robbins Property will be applied against the exchange value of the Agency Property and for the payment by Robbins to the Agency in cash of the balance due for the exchange and transfer of the Agency 15 Property by Robbins in the amount of $330,000 after such exchange value credit is recognized; 16 and 17 WHEREAS, an evaluation of the potential environmental effects of the simultaneous 18 exchange of the Agency Property and the Robbins Property is exempt from the California 19 Environmental Quality Act ("CEQA") and the CEQA Guidelines developed thereunder (the 20 "CEQA Guidelines"); and 21 WHEREAS, pursuant to Section 15301 of the CEQA Guidelines the exchange of the 22 Robbins Property and the Agency Property, respectively under the DDA, is a Class I 23 categorized exemption under the CEQA Guidelines as there will be no expansion of use of the 24 Agency Property by Robbins because the office building is already in existence and no further 2 P'\Agel1dil5\Re~(}lulion,\Resolullons.2003',OJ-10-20 532 N D 51 MCC Resodoe C1 2 Cl3 14 development is needed or contemplated upon acquisition, and the Agency plans to hold the Robbins Property upon acquisition as an unimproved property asset of the Agency; and 3 WHEREAS, the exchange of the Robbins Property and the Agency Property under the (' ,5 Property at its highest and best use in accordance with the Redevelopment Plan. Subject to th '-- 4 DDA will not expand the existing use of either property and no requirement of an additional 5 environmental review or further environmental review of the exchange of the real property is 6 necessary; and 7 WHEREAS, the exchange and acquisition of the Agency Property by Robbins and the 8 exchange and acquisition of the Robbins Property by the Agency is consistent with the Central 9 City North Redevelopment Plan; and 10 WHEREAS, it is appropriate for the Mayor and Common Council to approve the II acquisition of the Robbins Property from Robbins and the disposition of the Agency Property 12 to Robbins as set forth in the DDA and this Resolution. 15 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 16 Section I. This Resolution is adopted in furtherance of the provisions of Health and 17 Safety Code Section 33433 ("Summary Report"). Said Summary Report is on file with the 18 Agency Secretary. 19 The Mayor and Common Council has conducted a full and fair publi Section 2. 20 hearing regarding the disposition and exchange of the Agency Property for the Robbins Propert 21 pursuant to the terms and conditions of the DDA. The disposition of the Agency Property i 22 consistent with the adopted Implementation Plan of the Agency and the total value an 23 consideration realized by the Agency under the DDA for the exchange and disposition of th 24 Agency Property and the Robbins Property is not less than the fair market value of the Agenc 3 P:\AgcndaslRcsollltions\Rcwlulions2QOJ\OJ-10-20 5321'\ D 51 MCC RCSQ,doc C 2 3 4 5 6 7 8 9 10 approval of the DDA by the Community Development Commission of the City of Sa Bernardino, the Mayor and Common Council, hereby approve the simultaneous exchange of th Agency Property and the Robbins Property on the terms set forth in the DDA. Section 3. The Mayor and Common Council find that the exchange of the rea property and the DDA will not expand the existing use of either property and no requirement 0 an additional environmental review or further environmental review of the exchange of the rea property is necessary as provided for in CEQA Guidelines Section 1530 I. Section 4. This Resolution shall take effect upon its adoption and execution in the manner as required by the City Charter. //1 11 /1/ 12 /1/ .-13 /1/ '- 14 /1/ 15 //1 16 /1/ 17 /1/ 18 /1/ 19 /1/ 20 /1/ 21 /1/ 22 /1/ 23 /1/ 24 /1/ ,......25 /1/ '- 4 P:,^gendas\.Rcsolullons\RewlulJons\200J10J.l0.20 532)'..: D SI MCC Reso_doc 3 A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO (1) APPROVING THE EXCHANGE PURCHASE OF CERTAIN REAL PROPERTY BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") FROM STAN ROBBINS, AN INDIVIDUAL AND (2) APPROVING THE EXCHANGE SALE OF CERTAIN REAL PROPERTY BY THE AGENCY TO STAN ROBBINS cl 2 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a meeting thereof, held 8 on the day of 9 Council Members: Ayes ESTRADA 10 LONGVILLE II MCGINNIS 12 DERRY C3 SUAREZ 14 ANDERSON 15 MC CAMMACK 16 17 ,2003, by the following vote to wit: Nays Abstain Absent Rachel G. Clark, City Clerk 18 The foregoing resolution is hereby approved this day of ,2003. 19 20 21 Judith Valles, Mayor of the City of San Bernardino 22 Approved as to form and legal content: 23 24 By: ? ~ 25 L 5 P:-Agcndas\Rcsolllllons\Rcsolullons'JOOJ,03-10-20 5321\ D 51 MCC Rleso_doc c c 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND STAN ROBBINS, AN INDIVIDUAL c c 2003 DISPOSITION AND DEVELOPMENT AGREEMENT This 2003 DISPOSITION AND DEVELOPMENT AGREEMENT (this "Agreement") is entered into as of , 2003, by and between the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body corporate and politic (the "Agency") and STAN ROBBINS, an individual ("Robbins"). The Agency and Robbins hereby agree as follows: RECITALS A. Robbins is the owner of that certain real property commonly known as 450 North "F" Street, San Bernardino, California and more particularly described in the legal description attached as Exhibit "A" (the "Exchange Property"). The Exchange Property is located in the Central City North Redevelopment Project area (the "Project Area"). B. Agency is the owner of that certain real property commonly known as 532 North "0" Street, San Bernardino, California and more particularly described in the legal description attached as Exhibit "B" (the "Agency Property"). The Agency Property is located in the Project Area. c C. The Exchange Property and the Agency Property may sometimes be collectively referred to as the "Property" in this Agreement. ARTICLE I Section 1.01. Purpose of Agreement. The purpose of this Agreement is to implement the Redevelopment Plan for the Central City North Project Area (the "Redevelopment Plan") by providing for the purchase, use and maintenance by Robbins of the Agency Property, improved by an office building and providing for the purchase, use and maintenance by the Agency of the Exchange Property, which is vacant land. The purchase, use and maintenance of the Property pursuant to this Agreement is in the vital and best interests of the City of San Bernardino (the "City") and the health, safety and welfare of its residents, and is in accord with the public purposes and provisions of applicable state and local laws. The Agency has determined that the purchase, use and maintenance of the Property contemplated by this Agreement are consistent with the Redevelopment Plan for the Project Area. Section 1.02. The Agencv Propertv. The Agency Property consists of an approximately 4680 square foot office building situated one acre of land, more or less. Robbins intends to occupy and maintain the building and possibly lease offices to various businesses within the community. \...... P:\ClcrlcaJ ServIces Depl,Mar~arCI\AllrCemenlS-A"mendmcnls\Agnnls.Amcnd 2003\03-10-20 532 No 0 5t DDA 1.DOC ",.... Section 1.03. The Exchange Property. The Exchange Property is vacant land consisting \""... of approximately .53 acre. The Agency intends to hold the property for further use consistent with the Redevelopment Plan. Section 1.04. Benefit to Proiect Area. The Agency has determined that the purchase, use and maintenance of the Agency Property by Robbins and the purchase, use and maintenance of the Exchange Property by the Agency, in accordance with this Agreement, will materially assist in the elimination of blight and the implementation of the Redevelopment Plan for the Project Area. Section 1.05. Defined Terms. "Azencv Guitclaim Deed" means and refers to the deed substantially in the form of the attached Exhibit "c" to this Agreement together with such additional provisions, limitations, covenants and restrictions applicable to any portion ofthe Agency Property that may hereafter be required by either the Agency, the City, or any federal or State environmental regulatory agency. "Citv" means the City of San Bernardino. "Close or Escrow" means and refers to the date on which the conditions set forth in this Agreement for the transfer of the Property have been satisfied, and the appropriate forms of the Agency Quitclaim Deed and the Robbins Quitclaim Deed are recorded by the Escrow Holder but shall in no event exceed sixty (60) day from the Opening of Escrow (as defined below). c "Escrow Azent" means and refers to Lawyers Escrow and Title, Carolyn Krupt. "Person" means and refers to any individual, corporation, partnership, limited liability company, trust, governmental instrumentality or agency or other entity. "Robbins Guitclaim Deed" means and refers to the deed substantially in the form of the attached Exhibit "0" together with such additional provisions, limitations, covenants and restrictions applicable to any portion of the Exchange Property that may hereafter be required by either the Agency, the City, or any federal or State environmental regulatory agency. Section 1.06. Parties to the Agreement. (a) The parties to this Agreement are the Agency and Robbins. The City is not a party to this Agreement. (b) Robbins is an individual. The principal office of Robbins for purposes of this Agreement is (c) The Agency is a public body, corporate and politic, exercising governmental functions and power, and organized and existing under the Community Redevelopment Law of ,... the State of California, Health and Safety Code Section 33000, et seq. The principal office of the , 'I...- P.\Cleneal ServIces Depl'u\1argarel\Agreemenls-Amcndmcnls'Agrmls-Amend 2003\03-10-20 532 No D 51 DDA I.DOC 2 c c ,r'd '- Agency for purposes of this Agreement is 201 North E Street, Suite 301, San Bernardino, California, 9240 I, Attention: Executive Director. Section 1.07. Change in Ownership Management and Control of Robbins - Assignment and Transfer. (a) 'Transfer" as used in this Section 1.07, means: (I) Any total or partial sale, assignment or conveyance, or any trust or power, or any transfer in any other mode or form by Robbins of more than 49% interest (or series of such sales, assignments and the like which in the aggregate exceed a disposition of more than a 49% interest) with respect to its interest in this Agreement, the Agency Property, the Exchange Property or any part thereof or any interest therein or of the improvements constructed thereon, or any contract or agreement to do any of the same; or (2) Any total or partial sale, assignment, conveyance, or transfer in any other mode or form, or with respect to any ownership interest in Robbins (or series of such sales, assignments and the like which in the aggregate exceed a disposition of more than (49%) interest; or (3) Any merger, consolidation, sale or lease of all or substantially all of the assets of Robbins in the Agreement, the Agency Property, the Exchange Property (prior to the Close of Escrow) or any part thereof or any interest therein or the improvements constructed thereon (or series of such sales, assignments and the like which in the aggregate exceeded a disposition of more than a 49%) interest); or (4) The leasing of part or all of the Property, except for the leasing of office space in the normal course of business on the Agency Property. Section 1.08. List of Attachments to Agreement. Each of the following items or documents are hereby deemed to be approved by the parties as of the date of approval of this Agreement by the governing board of the Agency and each such item or document is incorporated into the text of this Agreement by this reference: Exhibit "A" Legal description of the Exchange Property Exhibit "B" Legal description of the Agency Property Exhibit "c" Form of Agency Quitclaim Deed Exhibit "D" Form of Robbins Quitclaim Deed Exhibit "E" Form of Promissory Note Exhibit "F" Form of Deed of Trust P:\Clerical SenilCCS Dcpl\Margarct-AgreemcnI5-Amendmcnts\Agnnls.Amcnd 2003,03. ]0.20 532 No 0 51 DDA I_DOC 3 c Section 1.09. No Recordation of Agreement Survival. This Agreement shall not be recorded as an encumbrance against title to any portion of the Property. This Agreement shall survive the Close of Escrow, but these surviving covenants shall be only personal covenants of the Agency and Robbins that do not run with the any portion of the Property, except that covenants that are contained in the Agency Quit Claim Deed, the Robbins Quitclaim Deed or other documents recorded at the Close of Escrow shall run with the Property as provided in such Agency Quitclaim Deed, Robbins Quitclaim Deed or other documents. ARTICLE II Section 2.01. Acquisition and Disoosition of the Prooertv. (a) Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration set forth below, Robbins hereby agrees to convey and transfer to the Agency and the Agency hereby agrees to acquire the following: all of the right, title and interest of Robbins in and to the Exchange Property, including all right, title and interest of Robbins in all improvements thereon and in and to any land lying in the right-of- way of any existing or proposed highway, street, road, avenue or alley abutting or adjoining the Exchange Property. c (b) Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration set forth below, the Agency hereby agrees to convey and transfer to Robbins and Robbins hereby agrees to acquire the following: all of the right, title and interest of the Agency in and to the Agency Property, including all right, title and interest of the Agency in all improvements thereon and in and to any land lying in the right-of-way of any existing or proposed highway, street, road, avenue or alley abutting or adjoining the Agency Property. Section 2.02. Conditions for Transfer of the Propertv. (a) The Agency Property shall be transferred to Robbins and the Exchange Property shall be transferred to the Agency at the Close of Escrow provided that within the periods of time set forth in this Agreement (i) neither party has terminated this Agreement; (ii) Robbins and the Agency have each timely delivered the Due Diligence Approval Certificate for their respective property as required pursuant to Section 2.11 hereof; (iii) Robbins has accepted the Agency Quitclaim Deed; (iv) the Agency has accepted the Robbins Quitclaim Deed; and, (v) all other conditions of the Close of Escrow set forth in this Agreement have been met and the escrow costs relating to the Close of Escrow have been paid by the appropriate party. (b) The parties shall deliver jointly approved written escrow instructions (consistent .r with the terms of this Agreement) to the Escrow Holder for the transfer of the Property as soon "-- as reasonably possible. P:\Clcrical Services DepIIMargartl\Agreemelm.Amc:ndmenlslAgrmls-Amcnd 2003\03-10-20 532 No D 51 DDA I.DOC 4 c Section 2.03 Purchase Price. (a) The purchase price of the Exchange Property is One Hundred Fifty Thousand Dollars ($150,000.00), (the "Exchange Property Purchase Price"). (b) The purchase price of the Agency Property is Four Hundred Eighty Thousand Dollars ($480,000.00), (the "Agency Property Purchase Price"). (c) Payment of Agencv Propertv Purchase Price. Upon the Opening of Escrow (as defined below) Robbins shall deliver to Escrow a non-refundable deposit in the amount of Five Thousand Dollars ($5,000.00), (the "Deposit"). The Deposit shall be applied to the Agency Property Purchase Price at the Close of Escrow. The Exchange Property Purchase Price shall be credited towards the balance of the Agency Property Purchase Price at the Close of Escrow. Robbins shall execute a promissory note in the form attached as Exhibit "E" for the balance of the Agency Property Purchase Price (the "Note") due after application of the Deposit and the Exchange Property Purchase Price. The Note shall bear interest at a rate of six percent (6%) per annum based on a 25 year amortization with the balance of principal and interest due five years from the Close of Escrow. The Note shall be secured by a Deed of Trust in the form attached as Exhibit "F" and recorded in the San Bernardino County Recorder's Office against the Agency Property (the "Deed of Trust"). c Section 2.04. Opening of Escrow. (a) The transfer and sale of the Property shall take place through escrow (the "Escrow") to be administered by Escrow Holder. The Escrow for the Property shall be deemed open ("Opening of Escrow") upon the receipt by the Escrow Holder of a fully executed copy of this Agreement. The Escrow Holder shall promptly confirm to the parties the escrow number and the title insurance order number assigned to the Escrow. (b) In the event that either Robbins has not delivered its Due Diligence Approval Certificate (as provided in Section 2.11) to the Agency and the Escrow Holder or the Agency has not delivered its Due Diligence Approval Certificate (as provided in Section 2.11) to Robbins and the Escrow Holder for the Property within IS days of the Opening of Escrow, the provisions of Section 4.01 regarding termination of this Agreement shall apply. If this Agreement is terminated as provided in Section 4.01, notwithstanding Section 2.05, Robbins shall be solely responsible to the Escrow Holder for all customary and reasonable escrow cancellation charges payable to the Escrow Holder without further or separate instruction to the Escrow Holder, and the parties shall each be relieved and discharged from all further responsibility or liability under this Agreement. Section 2.05. Supplemental Escrow Instructions. In addition to the jointly approved escrow instructions referred to in Section 2.02(b), Robbins and the Agency each agree to execute the customary supplemental escrow instructions of the Escrow Holder in the form provided by /~. the Escrow Holder to its clients in real property escrow transactions administered by it, subject to '-- the same being reasonably acceptable to Robbins and the Agency. In the event of a conflict P:\Clencal Services Dcpl\Margarel\Agreemcnls-Amc:ndmenls\Agrmls-Amend 2003\03.10-20 532 No 0 51 OVA I.DOC 5 c between the additional terms of such customary supplemental escrow instructions of the Escrow Holder and the provisions of this Agreement, this Agreement shall supersede and be controlling. Upon any termination of this Agreement or cancellation of the Escrow except as results from the default of the Agency, Robbins shall be solely responsible for the payment of the escrow cancellation costs of the Escrow Holder, except that the Agency shall be responsible if such termination is the result of the default of the Agency. Section 2.06. Convevance of Title. (a) On or before the day designated as the date for the Close of Escrow (the "Closing Date"), the Agency shall deliver to the Escrow Holder the Agency Quitclaim Deed duly executed and acknowledged by the Agency, which Agency Quitclaim Deed shall relinquish all of its right, title and interest of the Agency in the Agency Property to Robbins. The Escrow Holder shall be instructed to record the Agency Quitclaim Deed in the Official Records of San Bernardino County, California, if and when the Escrow Holder holds the various instruments and funds for the accounts of the parties as set forth herein and can obtain for either party if requested, a CL T A owner's extended coverage policy of title insurance ("Title Policy") issued by the Title Company or such other title insurance company mutually agreed upon by the parties with liability in an amount equal to such amount as determined by and between Robbins and the Title Company together with such endorsements to the policy as may be reasonably requested by Robbins, insuring that fee title to the Agency Property is vested in Robbins, free and clear of options, rights of first refusal or other purchase rights, leases or other possessory interests, lis pendens and monetary liens and/or encumbrances and subject only to: c (I) non-delinquent real property taxes; (2) non-monetary title exceptions approved by the Purchaser pursuant to Section 2.14 below; (3) the Redevelopment Plan and the City adopted Specific Plan; (4) such other title exceptions, if any, resulting from documents being recorded or delivered through Escrow. (b) On or before the Closing Date, Robbins shall deliver to the Escrow Holder the Robbins Quitclaim Deed duly executed and acknowledged by Robbins, which Robbins Quitclaim Deed shall relinquish all of its right, title and interest of Robbins in the Exchange Property to the Agency. The Escrow Holder shall be instructed to record the Robbins Quitclaim Deed in the Official Records of San Bernardino County, California, if and when the Escrow Holder holds the various instruments and funds for the accounts of the parties as set forth herein and can obtain for either party if requested, a CLTA owner's extended coverage policy of title insurance ("Title Policy") issued by the Title Company or such other title insurance company mutually agreed upon by the parties with liability in an amount equal to such amount as determined by and between the Agency and the Title Company together with such endorsements r to the policy as may be reasonably requested by the Agency, insuring that fee title to the '- Exchange Property is vested in the Agency, free and clear of options, rights of first refusal or P:\Clerical SCI"\IICCS DeplI.M.argarcl\AgrccmenIS_Amendmcnts'.Agrmls.A/Tlcnd 2003103-10-20 532 No D 51 DDA I,DOC 6 - \;"... c ,-- , '- other purchase rights, leases or other possessory interests, lis pendens and monetary liens and/or encumbrances and subject only to: (I) non-delinquent real property taxes; (2) non-monetary title exceptions approved by the Agency pursuant to Section 2.14; (3) such other title exceptions, if any, resulting from documents being recorded or delivered through Escrow Section 2.07. Additional Closing Obligations of Agencv. Before the Close of Escrow, the Agency shall deliver to the Escrow Holder copies of the following documents and other items: (I) a certificate of non-foreign status (the "Non-Foreign Affidavit") executed by the Agency, in the customary form provided by the Escrow Holder, and a California Franchise Tax Board Form 590-RE executed by the Agency; (2) two duplicate original copies of the Closing Statement, duly approved by the Agency; (3) evidence of the existence, organization and authority of the Agency and of the authority of persons executing documents on behalf of the Agency reasonably satisfactory to the Escrow Holder, Robbins and the Title Company; (4) an acknowledgment and acceptance of the Robbins Quitclaim Deed, duly executed and acknowledged by the Agency; and (5) any other documents, instruments and records required to be delivered to Robbins under the terms of this Agreement or as otherwise required by the Escrow Holder or the Title Company under the terms of this Agreement in order to Close Escrow which have not been previously delivered. Section 2.08. Closing Obligations of Robbins. Before the Close of Escrow, Robbins shall deliver to the Escrow Holder copies of the following documents and other items: (I) an acknowledgment and acceptance of the Agency Quitclaim Deed, duly executed and acknowledged by Robbins; (2) two duplicate original copies of the Closing Statement, duly approved by Robbins; (3) deposit of the original duly executed Note and original duly executed and acknowledged Deed of Trust; and P:\C1erlcal Services Depl\Margarcl,^grecmenls.Amcndmenls\Agrmls-Amcnd 2003;03-10-20 531 No 0 SI DDA l.DOe 7 'C c ,....~ '- (4) any other documents, instruments or funds required to be delivered by Robbins under the terms of this Agreement or as othelWise required by the Escrow Holder or the Title Company in order to close Escrow which have not previously been delivered. Section 2.09. Inspections and Review. (a) Agencv Due Diligence Items. Within five days after the execution of this Agreement by the authorized officers of the Agency, the Agency shall deliver true, correct and complete copies or originals of the following documents and items (collectively, "Agency Due Diligence Items") to Robbins to the extent such Agency Due Diligence Items have not previously been (i) delivered to Robbins, or (ii) reviewed by Robbins, or (iii) othelWise in the possession of Robbins prior to the execution of this Agreement: (I) copies of all soils, seismic, geologic, drainage, engineering, environmental and similar type reports and surveys (including, but not limited to, any Property Environmental Site Assessments) relating to the Agency Property if any, in the possession or control of the Agency. (2) notices of violations, including, but not limited to, zoning ordinances, development or building codes affecting the Agency Property within the Agency's possession or control. (3) a copy of the Redevelopment Plan for the Central City North Redevelopment Project. (4) disclosure of any legal matters affecting the use or condition of the Agency Property to the knowledge of the Agency. The Agency shall deliver to Robbins, promptly after receipt thereof, any other items described above received by the Agency after the initial delivery to Robbins as provided above. In addition, promptly following request by Robbins during the Due Diligence Period, the Agency shall deliver such other matters in its possession or control as reasonably requested by Robbins from time to time. (b) Robbins Due Diligence Items. Within five days after the execution of this Agreement by Robbins, Robbins shall deliver true, correct and complete copies or originals of the following documents and items (collectively, "Robbins Due Diligence Items") to the Agency to the extent such Robbins Due Diligence Items have not previously been (i) delivered to the Agency, or (ii) reviewed by the Agency, or (iii) othelWise in the possession of the Agency prior to the execution of this Agreement: (I) copies of all soils, seismic, geologic, drainage, engineering, environmental and similar type reports and surveys (including, but not limited to, any Property Environmental Site Assessments) relating to the Exchange Property if any, in the possession or control of Robbins. P:\Clerical Services Depl\Margarel\Agrccments-Amendrnenls\Agrmls-Amcnd 2003\03-10.20 5321"0 D 5l DDA I.DOC 8 c (2) notices of violations, including, but not limited to, zoning ordinances, development or building codes affecting the Exchange Property within the Robbins' possession or control. (3) disclosure of any legal matters affecting the use or condition of the Exchange Property to the knowledge of Robbins. Robbins shall deliver to the Agency, promptly after receipt thereof, any other items described above received by Robbins after the initial delivery to the Agency as provided above. In addition, promptly following request by the Agency during the Due Diligence Period, Robbins shall deliver such other matters in its possession or control as reasonably requested by the Agency from time to time. (c) Certain Definitions. For the purpose of this Agreement, the terms set forth below shall have the following meaning: r' L (i) "environmental laws" means all federal, state, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, or decrees, regulating, relating to, or imposing liability of standards of conduct concerning any hazardous substance (as later defined), or pertaining to occupational health or industrial hygiene (and only to the extent that the occupational health or industrial hygiene laws, ordinances, or regulations relate to hazardous substances on, under, or about the Property), occupational or environmental conditions on, under, or about the Property, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") [42 USC Section 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 ("RCRA") [42 USC Section 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 USC Section 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 USC Section 2601 et seq.]; the Hazardous Materials Transportation Act ("HMTA") [49 USC Section 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USC Section 6901 et seq.] the Clean Air Act [42 USC Section 7401 et seq.]; the Safe Drinking Water Act [42 USC Section 300f et seq.]; the Solid Waste Disposal Act [42 USC Section 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USC Section 101 et seq.] the Emergency Planning and Community Right to Know Act [42 USC Section 11001 et seq.]; the Occupational Safety and Health Act [29 USC Section 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C Section 25288 et seq.]; the California Hazardous Substances Account Act [H & S C Section 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C Section 24249.5 et seq.] and the Porter-Cologne Water Quality Act [Water Code Section 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance, or regulation now in effect or later enacted that pertains to occupational health or industrial hygiene, and only to the extent the occupational health or industrial hygiene laws, statutes, ordinances, or regulations relate to hazardous substances on, under, or c P:\Clerlcal ServIces Dcpl\MargarcIAgrecmenls-AmendmenaAgnnls-Amcnd 2003\0)-10-20 532 ~o D 51 DDA lDOe 9 c c c about the Property, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use. (ii) "hazardous substances" includes without limitation: those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," or "pollutant or contaminate" in CERCLA, RCRA, TSCA, HMT A, or under any other environmental law; and those substances listed in the United States Department of Transportation (DOT)Table [49 CFR 172.101], or by the EPA, or any successor agency, as hazardous substances [40 CFR Part 302]; and other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state, or local laws or regulations; and any material, waste, or substance that is: (I) a petroleum or refined petroleum product, (2) asbestos, (3) polychlorinated biphenyl, (4) designated as a hazardous substance pursuant to 33 USC Section 1321 or listed pursuant to 33 USC Section 1317, (5) a flammable explosive, or (6) a radioactive material. Section 2.10. Due Diligence Investigation of the Property. (a) Within fifteen (15) days from and after the Opening of Escrow, and subject to the extensions of time set forth below in Section 2.14, the parties shall have the right to examine, inspect and investigate the respective portion of the Property (the "Due Diligence Period") to determine whether the condition of that portion of the Property is acceptable to the respective party. (b) During the Due Diligence Period, each respective party shall permit the other party, its engineers, analysts, contractors and agents to conduct such physical inspections and testing of the respective portion of the Property as that party deems prudent with respect to the physical condition of such portion of the Property, including the inspection or investigation of soil and subsurface soil geotechnical condition, drainage, seismic and other geological and topographical matters, surveys the potential presence of any hazardous substances, if any. ?',Clencal Scr..iccs Depl\,\1afgare(\Agreemenl~-Arnendmenls\Agrmls-Amernl2003\03.IO.20 532 No D Sl DDA 1 DOC 10 c (c) Any such investigation work on the Property may be conducted by the either party and/or their agents during any normal business hours upon seventy-two (72) hours prior notice to the other party, which notice will include a description of any investigation work or tests to be conducted by the such party on the particular portion of the Property. Upon request, the testing party will provide the non-testing party with copies of any test results. (d) During the Due Diligence Period, the parties shall also have the right to investigate all matters relating to the zoning, use and compliance with other applicable laws, which relate to the use and development and improvement of the Property. (e) Each respective party shall cooperate fully to assist the other party in completing such inspections and investigations of the condition of the Property. Both parties shall have the right, but not the obligation, to attend any such investigations and/or inspections. Robbins shall pay for all costs and expenses associated with the conduct of his Due Diligence investigation and the Agency shall pay for all costs and expenses associated with the conduit of its Due Diligence investigation. Section 2.11. Due Diligence Certificate. Within fifteen (15) days following the Opening of Escrow, each party shall complete its own investigation of the respective portion of the Property (subject to the extensions of time set forth in Section 2.14) and deliver an executed due diligence certificate (the "Due Diligence Certificate") to the Escrow Holder which either: c (a) indicates that the party accepts the condition of the respective portion of the Property or; (b) contains a description of the matters or exceptions relating to the condition of the respective portion of the Property which the that party was not able to accept or resolve to its satisfaction during the Due Diligence Period. Section 2.12. Books and Records. As part of the due investigations during the Due Diligence Period, each party shall be afforded full opportUnity by the other party to examine all books and records which relate to the respective portion of the Property in the possession of the other party and/or the party's agents or employees, including the reasonable right to make copies of such books and records. During the Due Diligence Period, the Agency will make sufficient staff available to assist Robbins with obtaining access to information relating to the Agency Property, which is in the possession or control of Agency. Section 2.13. Condition of the Propertv. Each party acknowledges and agrees that it shall be given a full opportUnity under this Agreement to inspect and investigate every aspect of the Property during the Due Diligence Period. Each party shall accept the delivery of possession the particular portion of the Property that party, and each of them is purchasing on the Close of Escrow in an "AS IS", "WHERE IS" and "SUBJECT TO ALL FAULTS" condition. The each party further agrees and represents to the other respective party that by a date no later than the end of the Due Diligence Period, that party shall have conducted and completed (or waived the ,r-' completion) of all of its independent investigation of the condition of the Property. Each party '- hereby acknowledges that it shall rely solely upon its own investigation of the Property and its P:\Clerical Sen,ices Depl\Margarel\Agreemenls-Amendrnenls\Agrmls-Amend 2003\03-10.20 532 No D SI DDA loDe II c c r- '- own review of such information and documentation as it deems appropriate for the purpose of accepting the condition and possession of its portion of the Property. Neither party is relying on any statement or representation by the other respective party relating to the condition of the Property unless such statement or representation is specifically contained in this Agreement. Without limiting the foregoing, neither party makes any representations or warranties as to whether any portion of the Property presently complies with environmental laws or whether any portion of the Property contains any hazardous substance, as these terms are defined in Section 2.09(c) hereof. Furthermore, to the extent that a party has provided the other respective party with information relating to the condition of any portion of the Property, including information and reports prepared by or on behalf of the City of San Bernardino, neither party makes any representation or warranty with respect to the accuracy, completeness or methodology or content of such reports or information. Without limiting the above, except to the extent covered by an express representation or warranty of either party set forth in this Agreement, each respective party, on behalf of itself and its successors and assigns, waives and release the other respective party and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys' fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to the physical condition of the portion of the Property be transferred by such party, the condition of the soils, the suitability of the soils for improvement, or any law or regulation applicable thereto, including the presence or alleged presence of harmful or hazardous substances in, under or about that portion of the Property including, without limitation, any claims under or on account of (i) CERCLA and similar statutes and any regulations promulgated thereunder or (ii) any other environmental laws. With respective to the portion of the Property being transferred to each respective party, each party expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement. By execution of this Agreement, the parties acknowledge that they fully understand the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, described in this Section 2.13 without limiting the generality of the foregoing: The undersigned acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section ] 542, which provides as follows: P:\Clencal Se....lccs Depl\MargarCI\Agr<<rnenls-Amcndments\Agrmls-Amend 2003\03-10-20 532 No D $1 DDA 1.DOe 12 - , '- c ._0 I \..... "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNO\VN OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HA VE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." The undersigned, being aware of this code section, hereby expressly waives any rights it may have thereunder, as well as under any other statutes or common law principles of similar effect Initials of Robbins: Initials of Agency: The provisions of this Section 20 I 3 shall survive the Close of Escrow. Section 2.14. Review and Approval of Condition of Title. (a) Within fifteen (15) days following the Opening of Escrow, each party shall cause to be delivered to the other respective party a preliminary title report or title commitment for an AL T A extended coverage policy of title insurance issued by the Title Company, describing the state of title of the particular portion of the Property to be transferred by that party, together with copies of all exceptions specified therein and with all easements plotted, (the "Preliminary Title Report"). A party shall notify the other party in writing of any objections it may have to the title exceptions contained in the Preliminary Title Report ("Title Objection Notice") prior to the expiration of the Due Diligence Period. The party upon which notice was sent shall have a period of five (5) days after receipt of such Title Objection Notice in which to deliver written notice to the party sending notice ("Title Notice") of such party's election to either (i) agree to remove the objectionable items prior to the Close of Escrow, or (ii) decline to remove any such title exceptions; provided, however, that such party shall be required to remove all monetary liens and encumbrances created by or as a result of such party's activities. If a party receiving the Title Objection Notice notifies the objecting party of its election to terminate Escrow rather than remove the objectionable items, the objecting party shall have the right, by written notice delivered to the other party within five (5) days after the its receipt of the Title Notice, to agree to accept the portion of the Property subject to the objectionable items, in which event the election to terminate the Escrow shall be of no effect, and the party shall take title at the Close of Escrow subject to such objectionable title items. (b) The parties covenant not to further encumber and not to place any further liens or encumbrances on any portion of the Property, including, but not limited to, covenants, conditions, restrictions, easements, liens, options to purchase, options to lease, leases, tenancies, or other possessory interests without the prior written consent of the other party. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or P:'Clerical Services Dcpl\Margarcl\Agreemcnls-Amendmcnls\.I\gnnls.Amcnd 2003\03-10-20 532 No D 51 OVA lODe 13 c c supplement (provided that the period for the respective party to review such amendment or supplement shall be the later of the expiration of the Due Diligence Period or ten (10) days from receipt of the amendment or supplement) and Escrow shall be deemed extended by the amount of time necessary to allow such review and approval in the time and manner set forth above. ARTICLE III Section 3.01. Uses. (a) Acknowledgements of Robbins. Robbins acknowledges and agrees for itself, its successors and assigns that the Agency Property may be used for any lawful purpose so long as such use is in compliance with the General Plan, the Redevelopment Plan and the Zoning Plan, in existence and as each may be amended from time to time by the City, the Agency or other authorized governmental agency. The provisions of this Section 3.01(a) shall run with the land as set forth in the Agency Quitclaim Deed. (b) Robbins covenants for itself, its successors and assigns that, unless otherwise consented to in writing by the Agency, in the event the Agency Property, or any portion thereof is used by an owner that is partially or wholly exempt from the payment of ad valorem property taxes pertinent to the Agency Property, or portion thereof, and does not make the tax payment for any year based on that exemption, then in such event the owner of the Agency Property, shall pay the Agency a fee in lieu of payment of property taxes each year thereafter in an amount equal to the applicable percentage of the full cash value as determined in accordance with the State Construction Article XIIIA and other state law for the property, or portion thereof which is subject to the exemption, unless the Agency consents otherwise in writing. In the event that the in-lieu payment referenced above is due by the owner for any year, then such amount shall be paid to the Agency for the tax year within 90 calendar days following transmittal of notice of invoice by the Agency for payment of the in-lieu amount addressed to the owner of the Agency Property as disclosed in the property tax records of the County of San Bernardino. (c) The provisions of Section 3.01(b) shall run with the land as set forth In the Agency Quitclaim Deed. Section 3.02. Modification of Covenants. The provisIOns of this Article III may be amended, modified or waived following the Close of Escrow as provided in the Agency Quit Claim Deed. /1/ /1/ /1/ C /1/ ?\Clcrocal ServICes Dcpl\J\.largaret\Agrecmcnls.Amcndmcnts\AgrmIS-Amend 2003\03.10-20 532 No 0 51 DOA 1 DOC 14 C Section 3.03. Obligation to Refrain from Discrimination. In accordance with California Health and Safety Code Sections 33435 and 33436, Robbins covenants and agrees for itself, its successors, its assigns and every successor in interest to the Agency Property or any part thereof, tbat there shall be no discrimination against or segregation of any person, or group of persons, on account of sex, marital status, race, color, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Agency Property; nor shall Robbins, himself, 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, sublessee or vendees of the Agency Property. Section 3.04. Form of Nondiscrimination and Nonsegregation Clauses. acknowledges that the Agency Quit Claim Deed contains the following provision: Robbins "The grantee herein covenants by and for itself, its successors 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, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee 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, sublessee, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." c Section 3.05. No Liability for Breach to a Predecessor in Interest. A breach or a violation by an owner of the Agency Property, or a portion thereof, of a covenant set forth in this Article III shall not subject such owner's predecessor in interest in the Agency Property to any liability for such breach or violation. A breach by a tenant on the Agency Property of Section 3.03 or Section 3.04 shall not subject such tenant's landlord to liability for the breach by such tenant. Section 3.06. Agencv Ouit Claim Deed. All of the provisions in Sections 3.01 to 3.05, inclusive, shall be included in the Agency Quit Claim Deed. Accordingly, Sections 3.01 to 3.05, inclusive, shall not survive the Close of Escrow except as personal covenants of Robbins. ARTICLE IV Section 4.01. Defaults and Remedies. (a) In the event all of Robbins conditions precedent to the Close of Escrow are satisfied or waived by Robbins, and Robbins defaults in the performance of its obligations under this Agreement, and such default continues for five days after the Agency gives Robbins written notice thereof, then the Agency may exercise all available remedies at law or in equity, including, without limitation, specific performance. ,- \...... P:\ClcTlClIl Service~ [kpt\Margaret\A~recmenls-Arnendmcnls\Agrmls-Amcnd 2003\03-10-20 532 No D $1 DDA I.DOC 15 c c ;/- , "- (b) In the event all of the Agency's conditions precedent to the Close of Escrow have been satisfied or waived, and the Agency defaults in the performance of its obligations hereunder and has not cured such default within ten (10) calendar days after Robbins gives the Agency written notice thereof, or has not commenced to cure within ten (10) calendar days of such notice if such default cannot be cured within ten (10) calendar days and thereafter diligently pursued such cure, then Robbins may exercise all available remedies at law or in equity, including, without limitation, specific performance. (c) Notwithstanding the above, a breach of any obligation of either of the parties under this Agreement that by its terms survives the termination of this Agreement or the Close of Escrow, shall entitle the other party to exercise all available remedies, at law or in equity, with respect to such breach subject to the limitations set forth in this Agreement regarding limitations of the liability of the Agency. (d) The laws of the State of California shall govern the interpretation and enforcement of this Agreement. (e) In the event that any legal action is commenced by Robbins against the Agency, service of process on the Agency shall be made by personal service upon the Executive Director of the Agency, or in such other manner as may be provided by law. (I) In the event that any legal action is commenced by the Agency against Robbins, service of process on Robbins shall be made by personal service on Robbins (or such other Agent for service of process and at such address as may be specified in written notice to the Agency), or in such other manner as may be provided by law, and shall be valid whether made within or without the State of California. Section 4.02. Rights and Remedies are Cumulative. Except as otherwise expressly provided in this Agreement, the rights and remedies of the parties as set forth in this Article IV are cumulative and the exercise by either 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 the other party. ARTICLE V Section 5.01. Notices, Demands and Communications Between the Parties. (a) Any and all notices, demands or communications submitted by any party to another party pursuant to or as required by this Agreement shall be proper if in writing and dispatched by messenger for immediate personal delivery, or by registered or certified United States mail, postage prepaid, return receipt requested, or transmitted by fax and confirmed by the sender by First Class United States Mail postage prepaid or by personal delivery and in each case, addressed to the principal office of the Agency and Robbins, as applicable, as designated in Section 1.03(a) and Section 1.03(b) hereof. Courtesy copies of notices, demands or communications submitted by Robbins to the Agency shall be submitted to: P,',C1crical Services Dcpt\Margarct'Agll'cmenlS.Amendmenls\Agrmls-Amend 2003\03.]0-20 532 No D 51 DDA I.DOC 16 c c !,.,~." L James F. Penman City Attorney 300 North "D" Street San Bernardino, California 92418 Timothy J. Sabo Lewis Brisbois Bisgaard Smith LLP 650 E. Hospitality Lane, Suite 600 San Bernardino, California 92408 Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate as provided in this Section. Any such notice, demand or communication shall be deemed to be received by the addressee, regardless of whether or when any return receipt is received by the sender on the date set forth on such return receipt, on the day that it is dispatched by messenger for immediate personal delivery, the date sent by FAX and confirmed by First Class United States Mail or two (2) calendar days after it is placed in the United States Mail or personal delivery as heretofore provided. Section 5.02. Conflict of Interest. No member, official or employee of the Agency having any conflict of interest, direct or indirect, related to this Agreement and the transfer of the Property shall participate in any decision relating to the Agreement. The parties represent and warrant that they do not have knowledge of any such conflict of interest. Section 5.03. Warrantv Against Payment of Consideration for Agreement. Robbins warrants that it has not paid or given, and will not payor give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this Section, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by Robbins. Section 5.04. Nonliability of Agency Officials and Employees. No officer, official or employee of the Agency (or member unit of local government of the Agency or any officer, official or employee of any of them) shall be personally liable to Robbins, or any successor in interest of Robbins, in the event of any default or breach by the Agency or for any amount which may become due to Robbins or to its successor, or on any obligations under the terms of this Agreement, except for gross negligence or willful acts of such member, officer or employee Section 5.05. Enforced Delav: Extension of Time of Performance. (a) Performance by either party hereunder shall not be deemed to be in default, or considered to be a default, where delays or defaults are due to the force majeure events of war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes or weather-caused delays (that are not attributable to the fault of the party claiming an extension of time) or acts or failure to act of any public or governmental agency or entity (provided that acts or failure to act of the Agency shall not extend the time for the Agency to act hereunder except as provided in Section 5.05(b)). An extension of time for any such force majeure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided, however, that the party claiming the existence of the delay first provide the other party with written notice of the occurrence of the delay within ten (10) calendar days of the occurrence of P:IClerical SCI"'.:ices Dcpl\Margarcl\Agrecmcnts-Amcndments\Agrmts-A.mcnd 2003\03-10-20 532 No D 51 DDA IDOe 17 c c ,/" ' \....- the event giving rise to delay, The parties hereto expressly acknowledge and agree that changes in either general economic conditions or changes in the economic assumptions of any of them which may have provided a basis for entering into this Agreement and which occur at any time after the execution of this Agreement, are not force majeure events and do not provide any party with grounds for asserting the existence of a delay in the performance of any covenant or undertaking which may arise under this Agreement. Each party expressly assumes the risk that changes in general economic conditions or changes in such economic assumptions relating to the terms and covenants of this Agreement could impose an inconvenience or hardship on the continued performance of such party under this Agreement, but that such inconvenience or hardship is not a force majeure event and does not excuse the performance by such party of its obligations under this Agreement. (b) Robbins acknowledges that the Agency is a "public entity" and/or a "public agency" as defined under applicable California law. Therefore, the Agency must satisfy the requirements of certain California statutes relating to the actions of public entities, including, without limitation, the California Environmental Quality Act ("CEQA"). Also, as a public body, the Agency's action in approving this Agreement may be subject to proceedings to invalidate the Agreement. Robbins hereby assumes the risk of delays and damages that may result to Robbins from any such third-party legal actions related to the Agency's approval of this Agreement or contemplated by this Agreement, even in the event that an error, omission or abuse of discretion by the Agency is determined to have occurred. If a third-party files a legal action regarding the Agency's approval of this Agreement or the transfer of the Property as contemplated by this Agreement, the Agency may terminate this Agreement on 60 calendar days' written notice to Robbins of the Agency's intent to terminate this Agreement, referencing this Section 5.05(b), without any further obligation to perform the terms of this Agreement or any liability to Robbins resulting from such termination unless Robbins agrees to defend the Agency against such third- party legal action as provided below. Within 30 calendar days after receipt of the Agency's notice of intent to terminate this Agreement as provided in the preceding sentence, Robbins may offer to defend the Agency in the third-party legal action and pay all of the court costs, attorney fees, monetary awards, sanctions, attorney fee awards and the expenses of any and all financial or performance obligations that may result from the disposition of the legal action. Any such offer from Robbins must be in writing and in a form reasonably acceptable to the Agency. (c) Robbins acknowledges that the Agency is a redevelopment agency under the California Community Redevelopment Law. Therefore, the Agency must satisfy the requirements of the California Community Redevelopment Law. The Agency's action in approving this Agreement may be subject to proceedings to invalidate the Agreement. Robbins hereby assumes the risk of delays and damages that may result to Robbins from any such third- party legal actions claiming noncompliance with the Community Redevelopment Law related to the Agency's approval of this Agreement, even in the event that an error, omission or abuse of discretion by the Agency is determined to have occurred. If a third-party files a legal action regarding the Agency's approval of this Agreement or the transfer of the Property as contemplated by this Agreement, the Agency may terminate this Agreement pursuant to the same notices, options and procedures set forth in Section 5.05(b) of this Agreement. P:\Clerical Services Depl\Margarcl\Agrcement5-Amendmcnls\Agnnls-Amend 2003\03-10-20 532 No 0 SI DDA I,DOC 18 _ Section 5.06. Inspection of Books and Records. The Agency shall have the right at all r ~ reasonable times at the Agency's cost and expense to inspect the books and records of Robbins pertaining to the Property and/or the development thereof as necessary for the Agency, in its reasonable discretion, to enforce its rights under this Agreement. Matters discovered by the Agency shall not be disclosed to third parties unless required by law or unless otherwise resulting from or related to the pursuit of any remedies or the assertion of any rights of the Agency hereunder. Robbins shall also have the right at all reasonable times to inspect the books and records of the Agency pertaining to the Property and/or the development thereof as pertinent to the purposes of this Agreement. Notwithstanding the foregoing, neither party shall have any right to inspect books and/or records that contain attorney/client communications or other attorney work product. Section 5.07. Approvals. (a) Approvals required of the Agency or Robbins, or any officers, agents or employees of either the Agency or Robbins, shall not be unreasonably withheld and approval or disapproval shall be given within the time set forth in this Agreement or, if no time is given, within a reasonable time. (b) All material amendments to this Agreement must be approved by the Agency pursuant to official action of its Board at a duly noticed and held public meeting. c Section 5.08. Real Estate Commissions. The Agency shall not be liable for any real estate commissions, brokerage fees or finder fees which may arise from or be related to this Agreement unless such liability arises from the act or contract of the Agency. Robbins shall not be liable for any real estate commissions, brokerage fees or finder fees which may arise from or be related to this Agreement unless such liability arises from the act or contract of Robbins. Section 5.09. Attornevs' Fees. If either party hereto files any action or brings any action or proceeding against the other arising out of this Agreement, or is made a party to any action or proceeding brought by the Escrow Agent, then as between Robbins and the Agency, the prevailing party shall be entitled to recover as an element of its costs of suit, and not as damages, its reasonable attorneys' fees as fixed by the Court, in such action or proceeding or in a separate action or proceeding brought to recover such attorneys' fees. The costs, salary and expenses of the City Attorney and members of his office in enforcing this Agreement shall be considered as "attorneys' fees" for purposes of this Section. Section 5.10. Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns. Section 5. 11. Tax Deferred Exchange. Robbins intends to use the proceeds of the Exchange Property to affect a tax deferred exchange under Internal Revenue Code Section 1031. The Agency agrees to accommodate Robbins in effecting such tax deferred exchange. The ,.- Agency agrees to execute such additional escrow instructions, deeds, documents, agreements or '- instruments to effect this exchange, provided that the Agency does not incur any additional costs, P"Clerlcal Se....{lCe~ Depl\!\1argarel\AgrecmcRt~-Amcl1dmc"ts\Agrmts.Amcnd 2003\03-10-20 532 No D 51 DDA 1.DOC 19 c c /- '- expenses or liabilities in this transaction as a result of or in connection with this exchange. By agreeing to the foregoing the Agency is merely making an accommodation on behalf of Robbins and is in no way endorsing, approving, recommending or advising Robbins as to the validity or personal beneficial outcome of such tax deferred exchange. Robbins agrees to hold the Agency harmless of any liability, damages or costs, including reasonable attorney's fees that may arise from the Agency's participation in such exchange and further acknowledges that he did not obtain nor is relying on the advice of the Agency or any of its officers, agents and employees as to the validity and/or personal benefit of such exchange. Section 5.12. Miscellaneous. (a) This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same agreement, with one counterpart being delivered to each party hereto. (b) All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, unless the period of time specifies business days, provided that if the date or last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day which is not a Saturday, Sunday or state or national holiday. (c) The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions hereof unenforceable, invalid or illegal. Section 5.13. Release and Waiver. (a) In consideration of the Agency approving and entering into this Agreement, Robbins hereby releases and forever discharges the Agency, and each and all of its member entities, their representatives, associates, predecessors, successors, heirs, assigns, agents, representatives, attorneys, and all persons acting by, through, under or in concert with the Agency of and from any and all manner of action or actions, cause or causes of action, at law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims, rights, obligations, demands, damages, losses, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent (collectively referred to herein as "Claims"), which Robbins now has or may hereafter have against the Agency, or any of the above persons or entities by reason of or related to punitive damages allegedly arising from or in connection with a breach of this Agreement or any action or omission to act by the Agency. (b) By releasing and forever discharging Claims both known and unknown, as above provided, Robbins expressly waives any rights under California Civil Code Section 1542 which provides: P:\CJcncal Services Depl\MargarcllAgreemenI5-Amendments\Agrmls-Amcnd 2003\03-10-20 532 No D 51 DDA I ,DOC 20 c "A general release does not extend to claims which the creditor does not know of or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor," as well as under any other statutes and/or common law principles of similar effect arising in any jurisdiction. Initials of Robbins: Section 5.14. Entire Agreement. This Agreement includes _ pages and _ exhibits, which constitute the entire understanding and Agreement of the parties. Section 5.15. Integration. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto with respect to the Property, and supersedes all negotiations or previous agreements between the parties with respect to all or any portion of the Property. Section 5.16. Waiver/Amendment. All waivers of the provisions of this Agreement and all amendments hereto must be in writing and signed by the appropriate authority of the Agency and Robbins. Section 5.17. Headings. The headings to the paragraphs of this Agreement are for convenience of reference only, do not form a part of this Agreement and shall not in any way affect its interpretation. C Section 5.18. Time of Essence. Time is expressly declared to be of the essence of this Agreement. Section 5.19. Assignment. Robbins shall not assign his interests in this Agreement. Section 5.20. Binding on Heirs and Successors. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successor, and assigns ofthe parties hereto, but nothing in this Section 5.20 shall be construed as a consent by the Agency to any assignment of this Agreement by Robbins. c P:'Clcrical SCI"'\'ICCS Dept\Margarel'Agreemenls-Amendmenls'v\grmts-Amend 2003',0).10-20 532 No 0 SI DDA i,DOC 21 c c r' L IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first set forth above. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Gary Van Osdel Executive Director ROBBINS By: Stan Robbins P:\Clerical Services Dept\Margarcl\Agreemcnts-Arncndmcnt5\Agrmt5-Amcnd 2003\03.10.20 532 No D 5, DDA I.DOC 22 c c ,- L EXHIBIT "A" LEGAL DESCRIPTION OF EXCHANGE PROPERTY PARCEL 1: APN: 0134-101-09 THAT PORTION OF LOTS 7 AND 8, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE I, RECORDS OF SAID COUNTY DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 148 FEET, 6 INCHES SOUTH OF THE NORTHEAST CORNER OF LOT 8; RUNNING THENCE WEST 180 FEET; THENCE SOUTH 50 FEET; THENCE EAST 35 FEET; THENCE SOUTH 2 FEET; THENCE EAST 145 FEET TO WEST LINE OF "F" STREET; THENCE NORTH ALONG WEST LINE OF "F" STREET TO THE POINT OF BEGINNING. PARCEL 2: APN: 0134-101-10 ALL THAT PORTION OF LOTS 7 AND 8, BLOCK 27, IN THE CITY OF SAN BERNARDINO, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE I, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING 200 FEET 6 INCHES SOUTH OF THE NORTHEAST CORNER OF SAID LOT 8; THENCE WEST 157 FEET 9 INCHES; THENCE SOUTH 86-1/2 FEET, MORE OR LESS, TO THE NORTH LINE OF AN ALLEY; THENCE EAST 157 FEET 9 INCHES TO THE EAST LINE OF SAID LOT 8; THENCE NORTH 86-1/2 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. P:\Clerical Services DephMargarwAgreements-Amendments\Agrmls-Amcnd 2003\03.]0-20 532 No 0 5t DDA I,DOC 23 c c !".';...., '- EXHIBIT "8" LEGAL DESCRIPTION OF AGENCY PROPERTY PARCEL I: APN: 0134-081-10 All that portion of Lot I, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, records of said County, described as follows: Commencing 50 Feet South of the Northeast comer of said Lot I; thence South along the East line of said Lot 1 to the Southeast comer thereof; thence West along the South line of said Lot I; 140 Feet to a point 159 Feet East of the Southwest Comer of said Lot I; Thence North and parallel with the East line of said Lot I to a point which is 50 Feet South of the North line of said Lot I, thence East and parallel with the North line of Lot I, 140 Feet to the point of beginning. PARCEL 2: APN: 0134-081-23 All that portion of Lot I, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, Page 1, records of said County, described as follows: Beginning at the Southwest comer of the East 33.5 feet of the West 83.5 feet of said Lot I; thence East 109 feet along the South line of said lot to a point which is 159 feet East of the Southwest comer of said lot; thence North 150 feet to the North line of said lot; thence West 109 feet to the Northwest comer of said East 33.5 feet; thence South to the point of beginning. Except any portion thereof lying within the following described land: Beginning at the Northeast comer of said Lot I; thence South 50 feet along "0" Street; thence West 140 feet; thence North to the North line of said lot; thence east to the point of beginning. PARCEL 3: APN: 0134-081-22 A. That portion of Lot I, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7 of maps, Page I, records of said County, described as follows: Commencing at the Northeast comer of said Lot I; thence South on the West line of "0" Street, 50 feet; thence West 140 feet; thence North 50 feet to the North line of said Lot I; thence East 140 feet to the point of beginning. B. That portion of Lot 8, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, Page I, records of said County, described as follows: Commencing at the intersection of the South line of Church Street and the West line of"O" Street; thence South 61 feet, more or less, along the West line of"O" Street to the Northeast corner of Lot I, in said Block 36; thence West 150 feet; Thence North 61 feet, more or less, parallel to the West line of"O" Street to the South line of Church Street; Thence East along the South line of Church Street, to the point of beginning. P\Clencal Seniccs Depl\.Margarcl\Agreemcnts-Amcndmenls\Agrmts-Amend 2003\03-10-20 532 No D 51 DDA I_DOC 24 r- '- c r '- EXHIBIT "C" FORM OF AGENCY QUITCLAIM DEED RECORDING REQUESTED BY: When Recorded Mail Document and Tax Statement To: SPACE ABOVE THIS LINE FOR RECORDER'S USE QUITCLAIM DEED REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the Redevelopment Agency of the City of San Bernardino, a public body corporate and politic (the "Grantor") hereby remises, releases and quitclaims to Stan Robbins (collectively, "Robbins") the following described real property in the City of San Bernardino, County of San Bernardino, State of California: See attached Exhibit "A" This conveyance is further subject to the following community redevelopment covenants: I. Robbins covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there will be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor will Robbins 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 in or on the Property. P:\ClencaJ Scrvicc~ DcplIMargarel\Agrcernenls-Arncndmcnls'Agrmls-Amend 2003\03-10-20 5321\0 D $1 DDA 1 DOC 25 c 2. All deeds, leases or contracts made relative to the Property must contain the following nondiscrimination clauses: (a) In deeds: "The grantee herein covenants by and for itself, its 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, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee, or any person claiming under or through the grantee, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, locations, number, use or occupancy of tenants, lessees, subtenants, sub lessees or vendees in or on the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: c That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, age, marital status, national origin or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the lessee 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, sub lessees or vendees in the land herein leased." (c) 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, age, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee 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, sub lessees or vendees of the land. 3. A breach of any of the covenants, conditions or restrictions herein shall not defeat nor render invalid the lien or charge of any mortgage or deed of trust made in good faith and for value covering the Property or any part thereof; however, such covenants, conditions and restrictions shall be binding upon and effective against any new owner of the Property, or any portion thereof, whose title thereto is acquired by foreclosure, trustee's sale or otherwise. No mortgagee shall be subject to any reimbursement obligation which accrues prior to the date such ,- mortgagee takes title to the property. \.- P:\Clcnca] ServIces Depl\Margan:I\Agrecments-Amcndments\Agrmls-Amcnd 2003\03-10-20 532 No D 51 OVA I,DOC 26 c c c 4. Robbins covenants for itself, its successors and assigns that, unless otherwise consented to in writing by the Grantor, in the event the Property, or any portion thereof is used by an owner that is partially or wholly exempt from the payment of ad valorem property taxes pertinent to the Property, or portion thereof, and does not make the tax payment for any year based on that exemption, then in such event the owner of the Property, shall pay the Grantor a fee in lieu of payment of property taxes each year thereafter in an amount equal to the applicable percentage of the full cash value as determined in accordance with the State Construction Article XIIIA and other state law for the Property, or portion thereof which is subject to the exemption, unless the Grantor consents otherwise in writing. In the event that the in-lieu payment referenced above is due by the owner for any year, then such amount shall be paid to the Grantor for the tax year within 90 calendar days following transmittal of notice of invoice by the Grantor for payment of the in-lieu amount addressed to the owner of the Property as disclosed in the property tax records of the County of San Bernardino. 5. Robbins acknowledges and agrees for itself, its successors and assigns that the Property may be used for any lawful purpose so long as such use is in compliance with the General Plan, the Redevelopment Plan and the Zoning Plan, in existence and as each may be amended from time to time by the Grantor, the City or other authorized governmental agency. 6. Invalidation of any provision contained herein by judgment of court or otherwise shall in no way affect any of the other provisions, which shall remain in full force and effect. 7. A breach or a violation by an owner of the Property, or a portion thereof, of a covenant set forth in this Quitclaim Deed shall not subject such owner's predecessor in interest in the Property to any liability for such breach or violation. A breach by a tenant on the Property of Section 1 or Section 2 shall not subject such tenant's landlord to liability for the breach by such tenant. Grantor shall have the right to enforce the covenants, conditions and restrictions contained in this Quitclaim Deed notwithstanding any transfer of the Property or any portion thereof. IN WITNESS WHEREOF, the Grantor has caused this Quitclaim Deed to be executed by its authorized officer as of the date indicated next to the signature, below. Redevelopment Agency of the City of San Bernardino Date: By: Gary Van Osdel, Executive Director [NOTARY ACKNOWLEDGMENT ATTACHED] P:\ClcricaJ ScnilCCS Depl\Margarct\Agrccmcnt~-Amendmcnl,\Agrmls+A.mend 2003'.03-10-20 532 No D SI DDA I.DOC 27 c c /"'- '- ACCEPTANCE OF QUITCLAIM DEED BY ROBBIJ\'S The undersigned hereby acknowledges of the delivery of the subject property from the Redevelopment Agency of the City of San Bernardino. ROBBINS Date: By: [NOTARY ACKNOWLEDGMENT ATTACHED] P:IClerical Ser....ices Depl\Margarej"Agreemenls.Arncndmen(s\~grmls-Amend 200J\03.JO-~O 532 No 0 51 DDA 1 DOC 28 c c (- "- EXHIBIT "D" FORM OF ROBBINS QUITCLAIM DEED RECORDING REQUESTED BY: When Recorded Mail Document and Tax Statement To: SPACE ABOVE THIS LINE FOR RECORDER'S USE QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Stan Robbins, an individual (the "Grantor") hereby remises, releases and quitclaims to the Redevelopment Agency of the City of San Bernardino, a body corporate and politic (the "Agency") the following described real property in the City of San Bernardino, County of San Bernardino, State of California: See attached Exhibit "A" IN WITNESS WHEREOF, the Grantor has caused this Quitclaim Deed to be executed by its authorized officer as of the date indicated next to the signature, below. Stan Robbins, an individual Date: [NOTARY ACKNOWLEDGMENT A TT ACHED] P:\Clencal Services Depl\Margarcl\AgrcemenI5-AmendmcnlslAgrmls.Amend 2003\03-10-20 532 No 0 51 DDA I.DOC 29 c EXHIBIT "E" FORM OF PROMISSORY NOTE SECURED PROMISSORY NOTE PAYABLE TO A PUBLIC AGENCY Borrower: Lender: Stan Robbins Redevelopment Agency of the City of San Bernardino 201 North "E" Street, Suite 301 San Bernardino, California 92401 Principal Amount: $325,000.00 Date of Promissory Note: , 2003 Interest Rate: 6% Maturity Date of Promissory Note: , 2008 c I. PROMISE TO PAY. Stan Robbins, an individual, or his assigns (collectively, the "Borrower"), promises to. pay to the Redevelopment Agency of the City of San Bernardino (the "Agency" or "Holder"), or order, in lawful money of the United States of America, the principal sum of Three Hundred Twenty-Five Thousand and 00/100 Dollars ($325,000.00), together with interest on the unpaid outstanding principal balance from time to time as set forth below. 2. INDEBTEDNESS. This Promissory Note evidences the indebtedness of the Borrower to the Agency under the terms and conditions of that certain Disposition and Development Agreement dated , 2003 by and between Borrower and the Agency (the "DDA"). This Promissory Note is referred to in the DDA as the "Note". A copy of the DDA is on file with the Agency Secretary as a public record of the Agency. 3. INTEREST RATE. Interest shall accrue on the outstanding principal balance of this Promissory Note commencing on the date of Promissory Note set forth above, at the rate of six percent (6%) and calculated upon a twenty-five (25) year amortization schedule. 4. PAYMENT. Borrower shall make monthly payments in the amount of Two Thousand Ninety- Three and 98/1 00 Dollars ($2,093.98) beginning on the first day of the first month after the date of this Note, a set forth above, to the Agency at its address set forth above or such other address as later communicated in writing to Borrower by the Agency, in immediately available U.S. currency. Payments shall be applied first to unpaid fees, costs, and expenses which are reimbursable under the terms of this Promissory Note or the DDA, then to any late charges, then to accrued unpaid interest, then to outstanding principal. If any payment due date is a Saturday, t'~- Sunday, or United States or State of California official holiday, the due date of the payment shall \..... automatically be extended to the next following business day of the Agency. P\Clencal Serviee~ Depl\Mafgarcl\Agrecmenl~-Amcndmcnls\Agmlls-Amcnd 2003\0)-10-20 532 No D 51 DDA I_DOC 30 c 5. FINAL PAYMENT. All accrued and unpaid interest, late payment charges, outstanding principal, and all other amounts chargeable under this Promissory Note or the DDA shall be due and payable in full on the Maturity Date. 6. PREP A YMENT. Borrower may pay without penalty all or a portion of the amount owed under this Promissory Note earlier than it is due. 7. DEFAULT. Borrower will be in default if any of the following happens: A. Failure of the Borrower to make any payment to the Agency when due under this Promissory Note. B. Failure of the Borrower to make a required payment, ifany, to the Agency when due under the DDA and/or failure of the Borrower to comply with or to perform when due any term, obligation, covenant or conditions of the DDA after notice from the Agency under any applicable notice and cure terms of the DDA, if the failure is not cured in accordance with the cure provisions of the DDA. C. Failure of the borrower to comply with or to perform when due any other tenn obligation, covenant or condition contained in this Promissory Note or any other agreement which secures this Promissory Note, after notice from the Agency, under the applicable notice and cure terms. c D. Any warranty, representation or statement made or furnished to the Agency by or on behalf of the Borrower pursuant to the DDA is false or misleading in any material respect at the time made or furnished. E. The DDA, this Promissory Note, the Deed of Trust or any other document associated therewith ceases to be in full force and effect at any time and for any reason (including failure of any collateral document to create a valid and perfected security interest or lien) due to a default by the Borrower and failure to cure such default during any applicable cure period and other than by virtue of the repayment satisfaction and/or mutual release of any such obligation. F. The dissolution or the termination of the Borrower's existence as a going business of the insolvency of the borrower, or the appointment of a receiver for any part of the Borrower's property, any assignment for the benefit of creditors under any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws, unless such proceedings are discharged or dismissed within ninety (90) days following commencement by or against the Borrower. G. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, non-judicial foreclosure, self-help, repossession or any other method, by any creditor of the Borrower or by any governmental agency, against any collateral securing this Promissory Note, or by any governmental agency, unless such proceedings are discharged or dismissed within ninety (90) days following commencement. However, this event of default shall not be deemed r to have occurred if there is a good faith dispute by the Borrower as to the validity or \..... reasonableness of the claim which is the basis of the creditor or forfeiture proceeding, and if the P:',Clerical Services Dcpn~argaret\Al!reemenls.AmendmenlsAgrmls.Amend 2003\03.10.20 532 No D 51 DDA I DOC 31 c c c Borrower gives the Agency written notice of the creditor or forfeiture proceeding and furnishes reserves or a surety bond for the creditor or forfeiture proceeding satisfactory to the Agency and proceeds to vigorously defend against such a claim. H. Sale, transfer, hypothecation, assignment, or conveyance of the Agency Property (as defined in the DDA) or any portion or interest in the Agency Property by the Borrower without the Agency's prior written consent. If any default (other than a default described in (A), or (B), above) is curable, and if Borrower has not been given a notice of a default of the same provision of this Promissory Note within the preceding twelve (12) months, such a default may be cured (and in such event no default will be deemed to have occurred) if Borrower, after receiving written notice from the Agency demanding cure of such default: (i) cures the default within ten (10) calendar days; or (ii) if the cure requires more than ten (10) calendar days, immediately initiates steps which the Agency deems in its sole discretion to be sufficient to cure the default, and thereafter Borrower continuously pursues such cure to completion. 8. RIGHTS OF THE HOLDER. Upon default by the Borrower, the Agency may exercise any of its rights provided under the DDA, including, without limitation, the declaration by the Agency or the holder in due course of this Promissory Note (individually or collectively the "Holder") that the entire unpaid principal balance of this Promissory Note and all accrued and unpaid interest is immediately due and payable, without notice or presentment. Upon the failure of the Borrower to pay all amounts declared due pursuant to this paragraph entitled "RIGHTS OF THE HOLDER," including failure to pay at the Maturity Date, the Holder, at its option, may also, if permitted under applicable law, increase the interest rate on this Promissory Note for interest which accrues after the date such amount is declared due, to the rate often percent (10%) per annum. The Holder may hire or pay someone else to help collect this Promissory Note, if the Borrower does not pay. The Borrower will pay the Holder the amount of any and all such collection related expenses, including without limitation, subject to any limits under applicable law, the Holder's reasonable attorneys' fees, whether or not there is a lawsuit, including, without limitation, reasonable attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any post-judgment collection services. The Borrower also will pay any court costs, in addition to all other sums provided by law. This Promissory Note has been delivered to the Holder and accepted by the Holder in the State of California. If there is a lawsuit arising under this Promissory Note, the Superior Court of the State of California and for the County of San Bernardino shall have jurisdiction of such lawsuit. This Promissory Note shall be governed by and construed in accordance with the laws of the State of California. 9. COLLATERAL. The Borrower acknowledges this Promissory Note is secured by a Deed of Trust encumbering the Agency Property (as defined in the DDA). P,Clerical Services DcprMarg.arcl\.Agreemenls-AsnendmenlslAgrmls-Amend 2003',03.10-20 532 No D 51 DDA ] .DOC 32 c c ,- ~ 10. GENERAL PROVISIONS. The Holder may delay or forego enforcing any of its rights or remedies under this Promissory Note without losing them. Borrower and any other person who signs, guarantees or endorses this Promissory J\:ote, to the extent allowed by law, each waive any applicable statute of limitations, presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Promissory Note, and unless otherwise expressly stated in writing, no party who signs this Promissory Note, shall be released from liability. All such parties agree that the Holder may renew or extend (repeatedly and for any length of time) this Promissory Note, or release any party, or collateral; or impair, fail to realize upon or perfect the Holder's security interest in any collateral; and take any other action deemed necessary by the Holder in its sole discretion without the consent of or notice to anyone. All such parties also agree that the Holder may modify this Promissory Note and/or the DDA without the consent of or notice to anyone other than the party with whom the modification is made. All defined words, terms or phrases indicated by initial capital letters used in this Promissory Kote and not specifically defined in this Promissory Note shall have the meanings ascribed to such word, term or phrase in the DDA. PRIOR TO SIGNING THIS PROMISSORY NOTE, BORROWER HAS READ AND UNDERST ANDS ALL OF ITS PROVISIONS. BORROWER AGREES TO THE TERMS OF THIS PROMISSORY NOTE AJ\:D ACKNOWLEDGES RECEIPT OF A COPY HEREOF. BORROWER: STAN ROBBINS, an individual PIClerieal Services Dcpl'."'1ar~arel',^grecmen\~.Amcndments\Agrmlhll,Jnend 2003\03-10-20 532 No D 5! DDA ] DOC 33 c c -. "- EXHIBIT "F" FORM OF DEED OF TRUST P:\Clencal Services Depl\MargarChAgrcemcnls.Amcndmenls\Agnnl~.Amcnd 2003\03-10-20 532 No D 51 OOA IOCC 34 c c /,.., \..., RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Redevelopment Agency for the City San Bernardino Attention: Executive Director 201 North "E" Street, Suite 301 San Bernardino, California 92401 DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, FIXTURE FILING AND SECURITY AGREEMENT THE DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, FIXTURE FILING AND SECURITY AGREEMENT ("Deed ofTrust") is made as of , 2003, by the Stan Robbins (collectively, the "Trustor"), whose address is , to Lawyers Title Company ("Trustee"), whose address is , San Bernardino, California 92408, for the benefit of the Redevelopment Agency for the City of San Bernardino, a public body corporate and politic, its successors and assigns ("Beneficiary"), whose address is 201 North "E" Street, Suite 301, San Bernardino, California 92401. WITNESSETH That Trustor, for valuable consideration, grants, bargains, sells, conveys and warrants to Trustee, in trust with power of sale, that property in the City of San Bernardino, County of San Bernardino, State of California, more particularly described in Exhibit :'A" attached hereto and made a part hereof (the "Land"), together with the following described estate, property and rights of Trustor in the Land and/or in any improvements now or hereafter constructed thereon (severally and collectively, the "Property") as security for the performance of each covenant and agreement of Trustor contained herein and in all other instruments executed in connection herewith, and for the payment of all sums of money secured hereby. A. All the fee and leasehold estates and rights of Trustor now held and hereafter acquired in and to the Property and in and to land lying in streets and roads adjoining the Property, and all access rights and easements appertaining thereto; and B. All buildings, structures, improvements, furnishings, fixtures and equipment, real, personal and mixed, now or hereafter attached to, or used or adapted for use in the operation of the Property and any and all replacements and additions thereto, including without limitation, all heating apparatus and equipment whatsoever, all boilers, engines, motors, dynamos, generating equipment, pumps, piping and plumbing fixtures, cooling, ventilating, sprinkling, fire- extinguishing apparatus, gas and electric fixtures, elevators, escalators, partitions, and shrubbery P;ICk:rica! Services Dcpl\Margarcl,Agrcemellls.Amendmcnts\Agmns-Amend 2003\03.]0-20 532 No 0 51 Deed ofTruSIDOC I c c <",...- { '- and plants; and including also all interest of any owner of the Property in any of such items hereafter at any time acquired under conditional sales contract, chattel mortgage or other title- retaining or security instrument, all of which property mentioned in this paragraph shall be deemed part of the realty and not severable wholly or in part without material injury to the freehold; and C. All and singular the lands, tenements, privileges, water, water rights, water stock, mineral, oil and gas rights, hereditaments and appurtenances thereto belonging or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, royalties, issues and profits thereof, and all the estate, rights, title, claim, interest and demand whatsoever of the Trustor either in law or equity, of, in and to the Property, whether now held or hereafter acquired; D. All of the right, title and interest of Trustor now or hereafter existing in and to the following now or hereafter located in, upon, within or about or used in connection with the construction, use, operation or occupancy of the Property and/or the improvements thereon and any business or activity conducted thereon or therein, together with all accessories, additions, accessions, renewals, replacements and substitutions thereto or therefor and the proceeds and products thereof: (i) all materials, supplies, furniture, furnishings, appliances, office supplies, equipment, construction materials, vehicles, machinery, computer hardware and software, maintenance equipment, window washing equipment, repair equipment and other equipment and tools, telephone and other communications equipment; (ii) all books, ledgers, records, accounting records, files, tax records and returns, policy manuals, papers, correspondence, and electronically recorded data; (iii) all "General Intangibles" (as such term is defined in the California Commercial Code), instruments, money, "Accounts," (as such term is defined in the California Commercial Code), accounts receivable, notes, certificates of deposit, chattel paper, letters of credit, choses in action, good will, rights to payment of money, rents, rental fees, equipment fees and other amounts payable by persons who utilize the Property or any of the improvements or paid by persons in order to obtain the right to use the Property and any of the improvements, whether or not so used; trademarks, service marks, trade dress, tradenames, licenses, sales contracts, deposits, plans and specifications, drawings, working drawings, studies, maps, surveys; soils, environmental, engineering or other reports, architectural and engineering contracts, construction contracts, construction management contracts, surety bonds, feasibility and market studies, management and operating agreements, service agreements and contracts, landscape maintenance agreements, security service and other services agreements and vendors agreements; (iv) all compensation, awards and other payments or relief (and claims therefor) made for a taking by eminent domain, or by any event in lieu thereof (including, without limitation, property and rights and interests in property received in lieu of any such taking), of all or any part of the Property (including without limitation, awards for severance damages), together with interest thereon, and any and all proceeds (or claims for proceeds) of casualty, liability or other insurance pertaining to the Property, together with interest thereon; (v) any and .all claims or demands against any person with respect to damage or diminution in value to the Property or damage or diminution in value to any business or other activity conducted on the P \Clemal Sen'lces Dcpl,~argarel'Agreemenls.Arnendmcnl>\Agrm\s.!\mcnd 2003\03-10-20 532 No D 51 D~d ofTrustDOC 2 c c .r- \..... Property; (vi) any and all security deposits, deposits of security or advance payments made to others with respect to: (I) insurance policies relating to the Property; (2) taxes or assessments of any kind or nature affecting the Property; (3) utility services for the Property and/or the improvements; (4) maintenance, repair or similar services for the Property or any other services or goods to be used in any business or other activity conducted on the Property; (vii) any and all authorizations, consents, licenses, permits and approvals of and from all persons required from time to time in connection with the construction, use, occupancy or operation of the Property, the improvements, or any business or activity conducted thereon or therein or in connection with the operation, occupancy or use thereof, (viii) all warranties, guaranties, utility or street improvement bonds, utility contracts, telephone exchange numbers, yellow page or other directory advertising and the like; (ix) all goods, contract rights, and inventory; (x) all leases and use agreements of machinery, equipment and other personal property; (xi) all insurance policies covering all or any portion of the Property; (xii) all reserves (including those provided for in Section 17 hereof) and funds held in escrow by Beneficiary or other person for Beneficiary*s benefit and any funds deposited with Beneficiary, all accounts into which such funds are deposited and all accounts, contract rights and general intangibles or other rights relating thereto; (xiii) all names by which the Property is now or hereafter known; (xiv) all interests in the security deposits of tenants; (xv) all management agreements, blueprints, plans, maps, documents, books and records relating to the Property; (xvi) the proceeds from sale, assignment, conveyance or transfer of all or, any portion of the Property or any interest therein, or from the sale of any goods, inventory or services from, upon or within the Property and/or the improvements (but nothing contained herein shall be deemed a consent by Beneficiary to such sale, assignment, conveyance or transfer, except as expressly provided in this Deed of Trust); (xvii) any property described in paragraph B, above, which are not fixtures under California law; (xviii) all other property (other than fixtures) of any kind or character as defined in or subject to the provisions of the California Uniform Commercial Code, Secured Transactions, as amended and; (xix) all proceeds of the conversions, voluntarily or involuntarily, of any of the foregoing into cash or liquidated claims. TO HAVE AND TO HOLD the Property, together with all and singular the lands, tenements, privileges, water, water rights, water stock, mineral, oil and gas rights, hereditaments and appurtenances thereto belonging or in any wise appertaining, and the reversion and reversions, remainder and remainders, rents, royalties, issues and profits thereof, and all of the estate, right, title, claims and demands whatsoever of the Trustor, either in law or in equity, of, in and to the Property, forever as security for the faithful performance of the Obligations (as defined below) secured hereby and as security for the faithful performance of each and all of the covenants, agreements, terms and conditions of this Deed of Trust, and in all other instruments executed in connection herewith, SUBJECT, HOWEVER, to the right, power and authority given to and conferred upon Beneficiary to collect and apply such rents, issues and profits. This Deed of Trust also constitutes a security agreement in all of the property above described or referenced in which such interest may be created under the California Commercial Code and for such purposes Trustor hereby grants to Beneficiary a security interest therein. P:\Clcrical ServIces DeptlMargarctA!;reemcms-Amendmenls"Agrmls-Amcnd 200J'03-10-20 532 No D SI Deed ofTru~1 DOC 3 c c r'- L.. 1. Agency Loan Secured. This Deed of Trust is made for the purpose of securing (i) the prompt payment of the Note (as defined below), together with all interest, premiums and other amounts, if any, due in accordance with the terms of the Note and that certain Disposition and Development Agreement by and between the Redevelopment Agency for the City of San Bernardino and Stan Robbins, dated as of (the "Disposition and Development Agreement"), and all references therein, regarding the purchase, lease, sale, or financing of the Property and the payment of the principal sum of THREE HUNDRED TWENTY FIVE THOUSAND 001100 DOLLARS ($325,000.00) (the "Loan") as evidenced by that certain Secured Promissory Note of even date herewith (which note, together with all notes issued in substitution or exchange therefore and all amendments thereto, is referred to as the "Note") for Trustor's acquisition of the Property and all other instruments or agreements executed in connection therewith, and all interest thereon and other amounts evidenced thereby; all future advances made to Trustor by Beneficiary, its successors and assigns, under the Disposition and Development Agreement or pursuant to the terms of this Deed of Trust or any other instruments or agreements executed in connection with or to secure the covenants of the Trustor set forth in the Disposition and Development Agreement (collectively, the "Transaction Documents"); (ii) the prompt performance of each and every covenant, condition, and agreement contained in the Transaction Documents; (iii) the payment of any and all other debts, claims, obligations, demands, monies, liabilities and indebtedness of any kind or nature now or hereafter owing, arising, due or payable from Trustor to Beneficiary, when the document evidencing the same specifically refers to this Deed of Trust and that it is intended to be secured hereby; and (iv) the obligations evidenced by all renewals, extensions, modifications, substitutions and conditions of any of the Transaction Documents; and any and all other obligations of Trustor to Beneficiary, its successors and assigns, now existing and hereafter arising and which are at any time specifically declared by Beneficiary in writing to be secured by this Deed of Trust or which specifically indicate in the instruments which evidence the same that they are intended to be so secured. All obligations of Trustor to Beneficiary pursuant to the Transaction Documents are sometimes collectively referred to as the "Obligations". 2. Trustor's Covenant of Payment. Trustor shall perform all of its obligations under the Transaction Documents and under this Deed of Trust when due, without excuse or delay of any kind whatsoever, except as expressly provided herein or therein, and Trustor shall pay the Loan, and all other debts and monies secured by this Deed of Trust when due without set off or deduction of any kind. 3. Trustor's Warranties of Title. Trustor warrants to Beneficiary that it is the sole holder of fee simple absolute title to all of the Property and that said title is marketable and free from any lien or encumbrance, except as otherwise provided in this section, or approved in writing by Beneficiary, and the liens imposed by law for nondelinquent real property taxes and assessments. Trustor further covenants and agrees as follows: that Trustor will keep the Property free from all liens of any kind, including, without limitation, statutory and governmental liens; that no lien superior or junior to this Deed of Trust will be created or suffered to be created by Trustor during the life of this Deed of Trust without Beneficiary's prior written consent; that PICIcrical $cnices Dcpl\MargarelV\grecmcnls-Amendmcnls\Agrmls-Amcnd 2003\03.]0-20 532 No D SI Deed ofTruslDOC 4 c c c Trustor has good right to make this Deed of Trust and the person or persons executing this Deed of Trust on behalf of Trustor has or have the authority to do so; and that Trustor will forever warrant and defend Beneficiary's interest in the Property against every person, whomsoever, claiming any right or interest in the Property or any part thereof. 4. Trustor's Right to Contest Statutory Liens. As used herein the words "mechanic's lien" and "materialmen's lien" mean and include a "stop notice" as this term is defined in California Civil Code Sections 3179, et seq. The filing ofa mechanic's or materialmen's lien against the Property or a stop notice against the Trustor or the Beneficiary and/or funds held by or owed to the Trustor for an improvement of the Property shall not constitute a default hereunder, if and so long as (a) no defaults exist under the Disposition and Development Agreement, this Deed of Trust, or any of the other Transaction Documents; (b) within fifteen (15) days after filing of such lien, Trustor obtains and maintains in effect a bond issued by a California admitted surety acceptable to Beneficiary in an amount not less than 125% of the entire sum alleged to be owed to the lien claimant or such other amount as is required to obtain a court order to release said lien of record; (c) Trustor provides to Beneficiary and pays for an endorsement to Beneficiary's title insurance policy, in a form satisfactory to Beneficiary, which insures the priority of this Deed of Trust over the lien being contested; (d) Trustor immediately commences its contest of such lien and continuously pursues the same in good faith and with due diligence; (e) such bond or contest stays the foreclosure of the lien; and (f) Trustor pays in full any judgment rendered for the lien claimant within ten (10) days following entry of any such judgment. 5. Maintenance and Inspection of Improvements. Trustor shall maintain the buildings and other improvements now or hereafter located on the Property in good condition and state of repair. Trustor shall not commit or suffer any waste on the Property, shall promptly comply with all requirements of federal, state and municipal authorities and all other laws, ordinances, regulations, covenants, conditions and restrictions respecting the Property or the use thereof, and shall pay all fees or charges of any kind in connection therewith. 6. Construction and Repairs. This Deed of Trust is given to secure an obligation for the repayment of the Loan for the purchase of the Property and, without limiting the application of any provision of the Disposition and Development Agreement or any other Transaction Document, Trustor therefore further agrees: To allow Beneficiary to inspect said Property at all reasonable times. Trustor shall complete or restore promptly and in a good and workmanlike manner any building or improvement that may be constructed, damaged or destroyed on the Property, and pay when due all costs incurred therefor. 7. Alterations. No building or other improvement on the Property shall be structurally altered, removed or demolished without the Beneficiary's prior written consent, nor P,C1l'ri\;al Scr\,ices Depl\MargarcIAgrcemcms-AmcndmenlslAgrmls-Amend 2003\03-10-20 532 No 0 5l Dced ofTrusl.DOC 5 c c ,r' '- shall any fixture or chattel covered by this Deed of Trust and adapted to the proper use and enjoyment of the Property be removed at any time without Beneficiary's prior written consent, unless actually replaced by an article of equal suitability and value, owned by the Trustor, free and clear of any lien or security interest, except such as may be approved in writing by the Beneficiary. 8. Compliance With Laws. Trustor shall comply with all statutes, laws, ordinances and regulations which now or hereafter pertain to the construction, repair, condition, use and occupancy of the Property, including, without limitation, all environmental, subdivision, zoning, building code, fire, occupational, health, safety, occupancy and other similar or dissimilar statutes, and shall not permit any tenant or other occupant of any portion of the Property to violate the same. If any statute or order of any court of competent jurisdiction requires any correction, alteration or retrofitting of any improvements on or related to the Property, Trustor shall promptly undertake the required repairs and restoration and complete the same with due diligence at its sole cost and expense. 9. Environmental Covenants, Representations, Warranties and Indemnitv. (a) Trustor will not use any Hazardous Materials (as defined herein below) in the construction of the Project or other improvements on or about the Property. (b) Trustor shall, at its sole expense, comply and cause each tenant occupying or leasing space within the Property to comply with all applicable laws, regulations, codes and ordinances relating to any Hazardous Materials or to any Environmental Activities (as defined herein below), including, without limitation, obtaining, filing, serving or posting all applicable notices, permits, licenses and similar authorizations. Trustor shall establish and maintain a management and operating policy for the Property to assure and monitor continued compliance by Trustor and each tenant occupying or leasing space in the Property with all such laws, regulations, codes and ordinances. (c) Trustor agrees to submit from time to time, if requested by Beneficiary, a report, satisfactory to Beneficiary, certifying that the Property is not now being used nor has it ever been used for any Environmental Activities. Beneficiary reserves the right, in its reasonable discretion, to retain, at Trustor's expense, an independent professional consultant to review any report prepared by Trustor and/or to conduct its own investigation of the Property for Hazardous Materials. Trustor hereby grants to Beneficiary, its agents, employees, consultants and contractors the right to enter upon the Property to perform such tests as are reasonably necessary to conduct such a review and/or investigation. (d) Upon the discovery by Trustor of any event or situation which would render any of the representations or warranties contained in subparagraph 9(h) hereof inaccurate in any respect, if made at the time of such discovery, Trustor shall promptly notify Beneficiary of such event or situation and, within thirty (30) days after such discovery, submit to Beneficiary a P:\Clerical Services DepiJ>1argarellAgrecmcnls-Amcndmcms\A.grmts-Amend 2003\03-10.20 532 No D SI Deed ofTrusl.DOC 6 c c c preliminary written environmental plan setting forth a general description of such event or situation and the action that Trustor proposes to take with respect thereto. Within sixty (60) days after such discovery, Trustor shall submit to Beneficiary a final written environmental report, setting forth a detailed description of such event or situation and the action that Trustor proposes to take with respect thereto, including, without limitation, any proposed corrective work, the estimated cost and time of completion, the name of the contractor and a copy of the construction contract, if any, and such additional data, instruments, documents, agreements or other materials or information as Beneficiary may reasonably request. The plan shall be subject to Beneficiary's prior written approval, which approval may be granted or withheld in Beneficiary's sole but reasonable discretion. Beneficiary shall notify Trustor in writing of its approval or disapproval of the final plan within fifteen (IS) days after receipt thereof by Beneficiary. If Beneficiary disapproves the plan, Beneficiary's notice to Trustor of such disapproval shall include a brief explanation of the reasons therefor. Trustor shall submit to Beneficiary a revised final written environmental plan that remedies the defects identified by Beneficiary as reasons for Beneficiary's disapproval of the previous plan. If Trustor fails to submit a revised plan to Beneficiary within said thirty (30) day period, or if such revised plan is submitted to Beneficiary and Beneficiary disapproves said plan, such failure or disapproval shall, at Beneficiary's option and upon notice to Trustor, constitute an "Event of Default" hereunder. If Beneficiary does not notify Trustor of its approval or disapproval of the final plan or any revisions thereof within the fifteen (15) day period described above, Trustor shall provide written notice to Beneficiary of Beneficiary's failure to respond, at which time Beneficiary shall have an additional forty-five (45) days after receipt of such notice from Trustor to notify Trustor of its approval or disapproval of the final plan within said additional forty-five (45) day period. If Beneficiary fails to notify Trustor of its disapproval or approval of said plan within said forty-five (45) day period the plan shall be deemed approved. Once any such plan is approved in writing or deemed approved by Beneficiary, Trustor shall promptly commence all action necessary to implement such plan and to comply with any requirements or conditions imposed by Beneficiary, and shall diligently and continuously pursue such action to completion in strict accordance with the terms of said plan. The rights of Beneficiary with respect to the approval or disapproval of the environmental plan set forth herein and the actions of Beneficiary pursuant to such rights are not intended to, and shall not, in and of themselves, confer on Beneficiary a right to manage, operate or control the Property on a continuing basis following the discovery of the event(s) or occurrence(s) described in this subparagraph 9( d). (e) Trustor agrees to submit from time to time, if requested by Beneficiary, a report, satisfactory to Beneficiary, specifying any activities involving, directly or indirectly, the use, generation, treatment, storage or disposal of any Hazardous Materials on the Property. Beneficiary reserves the right, in its sole and reasonable discretion, to retain, at Trustor's expense, an independent professional consultant to review any report prepared by Trustor and/or to conduct its own investigation of the Property. Trustor hereby grants to Beneficiary, its agent, employees, consultants and contractors the right to enter upon the Property and to perform such tests as Beneficiary deems are necessary to conduct such a review and/or investigation. Beneficiary shall hold in confidence any report delivered by Trustor to Beneficiary pursuant to P"Clenca] Sel'\'ICCS Dcpl\J\.larg8rcl'A~rccmen!s.Amcndmcnls\.Agrmls.Amend 2003\03-10-20 532 No D SI Deed oflruslDOC 7 c c r "- this Section 9, except for disclosure to (a) any consultant(s) hired by Beneficiary to review said report, (b) legal counsel, accountants and other professional advisors to Beneficiary, (c) regulatory officials having jurisdiction over Beneficiary who may request said report, (d) as required by any federal, state, county, regional or local authority or law, rule, regulation or ordinance, (e) as required in connection with any legal proceeding, and (I) any financial institution in connection with a disposition or proposed disposition of all or part of Beneficiary's or any participant's interests hereunder. "Hazardous Materials" as used in this Deed of Trust shall mean any hazardous or toxic materials, pollutants, effluents, contaminants, radioactive materials, flammable explosives, chemicals known to cause cancer or reproductive toxicity, emissions or wastes and any other chemical, material or substance, the handling, storage, release, transportation, or disposal of which is or becomes prohibited, limited or regulated by any federal, state, county, regional or local authority or which, even if not so regulated, is or becomes known to pose a hazard to the health and safety of the occupants of the Property including, without limitation, (i) asbestos, (ii) petroleum and petroleum by-products, (iii) urea formaldehyde foam insulation, (iv) polychlorinated biphenyls, (v) all substances now or hereafter designated as "hazardous substances," "hazardous materials" or "toxic substances" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.c. Section 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA"), the Federal Water Pollution Control Act, 33 U.S.c. Section 1251 et seq. the Clean Air Act, 42 U.S.c. Section 7401 et seq., the Hazardous Materials Transportation Act, 49 U.S.c. Section 1801 et seq., or the Resource, Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; (vi) all substances now or hereafter designated as "hazardous wastes" in Section 25117 of the California Health & Safety Code or as "hazardous substances" in Section 253 16 of the California Health & Safety Code; (vii) all substances now or hereafter designated by the Governor of the State of California pursuant to the Safe Drinking Water and Toxic Enforcement Act of 1986 as being known to cause cancer or reproductive toxicity, or (viii) all substances now or hereafter designated as "hazardous substances," "hazardous materials" or "toxic substances" under any other federal, state or local laws or in any regulations adopted and publications promulgated pursuant to said laws. "Environmental Laws" as used herein shall mean all laws, rules, regulations and ordinances relating to Hazardous Materials, including, but not limited to, those relating to soil and groundwater conditions and those statutes referred to in the definition of Hazardous Materials set forth hereinabove. "Environmental Activities" as used herein shall mean the use, generation, transportation, treatment, storage or disposal of any Hazardous Materials at any time located on or present on, under or about the Property. (I) Trustor hereby agrees, at its sole cost and expense, to indemnify, protect, hold harmless and defend (with counsel of Beneficiary*s choice), Beneficiary, its successors and P:\Clencal ServIces Dcpl".Mar~arcl\A8rccmcn(s.Amcndmcn1S',^grmls-Amcnd 2003\03-10-20 5321'00 0 $1 Ot:ed orTrust.DOC 8 ".... \.,., c r '- assignees, and the officials, officers, agents, attorneys and employees of each of them (individually, each an "Indemnitee", and collectively, the "Indemnitees") from and against any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and expenses (including, without limitation, attorneys' and experts' reasonable fees, disbursements and costs) of any kind or of any nature whatsoever (collectively, "Claims") which may at any time be imposed upon, incurred or suffered by, or asserted or awarded against, any Indemnitee directly or indirectly relating to or arising from any of the following "Environmental Matters," but excluding any Claims arising solely from the gross negligence or willful misconduct of Beneficiary: (i) Any past, present or future presence of any Hazardous Materials on, in, under or affecting all or any portion of the Property or on, in, under or affecting all or any portion of any property adjacent or proximate to the Property, if such Hazardous Materials originated or allegedly originated on or from the Property; (ii) Any past, present or future storage, holding, handling, release, threatened release, discharge, generation, leak, abatement, removal or transportation of any Hazardous Materials on, in, under or from the Property or any portion thereof, (iii) The failure of Trustor to comply with any and all laws, rules, regulations, judgments, orders, permits, licenses, agreements, covenants, restrictions, requirements or the like now or hereafter relating to or governing in any way the environmental condition of the Property or the presence of Hazardous Materials on, in, under or affecting all or any portion of the Property including, without limitation, all Environmental Laws; (iv) The failure of Trustor to properly complete, obtain, submit and/or file any and all notices, permits, licenses, authorizations, covenants, and the like relative to any of the Environmental Matters described herein in connection with the Property or the ownership, use, operation or enjoyment thereof, (v) The extraction, removal, containment, transportation or disposal of any and all Hazardous Materials from any portion of the Property or any other property adjacent or proximate to the Property, if such Hazardous Materials originated or allegedly originated on or from the Property; (vi) Any past, present or future presence, permitting, operation, closure, abandonment or removal from the Property of any storage tank that at any time contains or contained any Hazardous Materials and is or was located on, in or under the Property or any portion thereof; (vii) The implementation and enforcement of any monitoring, notification or other precautionary measures that may at any time become necessary to P\Clerica. ServICes Dcpl\Margarel'Agr~men(s-Arnendmcnls\Agmus.Amend 2003',03.10.20 532 f>;o D 51 Deed ofTrustDOC 9 c c r '- protect against the release or discharge of Hazardous Materials on, in, under or affecting the Property or into the air, any body of water, any other public domain or any property adjacent or proximate to the Property; (viii) Any failure of any Hazardous Materials generated or moved from the Property to be removed, contained, transported or disposed of in compliance with all applicable Environmental Laws; or (ix) Any breach by Trustor of any of its covenants, representations or warranties regarding Environmental Matters contained in this Deed of Trust or any of the other Transaction Documents. (g) Trustor hereby represents and warrants as follows: (i) The Property is not and has not been a si te for the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, or transportation of any Hazardous Materials; (ii) The Property is in compliance with all Environmental Laws; (iii) Trustor has not received any written notice of claims or actions (collectively, "Hazardous Materials Claims") pending or threatened against Trustor or any previous owner or user of the Property (and relating to Trustor's and/or such previous owner's or user's ownership of the Property), by any governmental entity or agency or any other person or entity and relating to Hazardous Materials or pursuant to Environmental Laws; and (iv) Trustor has not received any written notice (i) pursuant to which the Property has been designated as "border zone property" under the provisions of California Health and Safety Code Sections 25220 et seq., or any regulation adopted in accordance therewith, (ii) of a hearing at which the Property will be considered for designation as "border zone property," or (iii) of an occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be designated as "border zone property." The foregoing shall constitute environmental prOVISIons for purposes of California Code of Civil Procedure Section 736. 10. Insurance 10.1. Casualtv Insurance. Trustor shall at all times keep the Property insured for the benefit of Trustee and Beneficiary as follows, despite governmental requirements that ?"Clcrical Services Depl\Margarct"Agrcements-Amcndrrn:nts\Agrmls-Amcnd 2003\03.10-20 532 No D 51 D~d of TrusLDQC 10 c c r \.- may detrimentally affect Trustor's ability to obtain or may materially increase the cost of such insurance coverage: 10.1.1. Against damage or loss by fire and such other hazards (including lightning, windstonn, hail, explosion, riot, acts of striking employees, civil commotion, vandalism, malicious mischief, aircraft, vehicle, and smoke) as are covered by the broadest fonn of extended coverage endorsement available from time to time, in an amount not less than the full insurable value (as defined in section 10.9) of the Property, with a deductible amount not to exceed an amount satisfactory to Beneficiary; 10.1.2. Against rent, business, use or occupancy interruption on such basis and in such amounts and with such deductibles as are satisfactory to Beneficiary; 10.1.3. Against damage or loss by flood, if the Property is located in an area identified by the Secretary of Housing and Urban Development or any successor or other appropriate authority (governmental or private) as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968 or the Flood Disaster Protection Act of 1973, as amended, modified, supplemented, or replaced from time to time, on such basis and in such amounts as Beneficiary may require; 10.1.4. Against damage or loss from (a) sprinkler system leakage and (b) boilers, boiler tanks, heating and air conditioning equipment, pressure vessels, auxiliary piping, and similar apparatus, on such basis and in such amounts as Beneficiary may require; 10.1.5. During any alteration, construction, or replacement of improvements on the Property, or any substantial portion thereof, a Builder's All Risk policy with extended coverage with course of construction and completed value endorsements, for an amount at least equal to the full insurable value of the improvements on the Property, and workers' compensation, in statutory amounts, with provision for replacement with the coverage described in Section 10.1, without gaps or lapsed coverage, for any completed portion of improvements on the Property; and 10.1.6. Against damage or loss by earthquake, in an amount and with a deductible satisfactory to Beneficiary, if such insurance is required by Beneficiary in the exercise of its business judgment in light of the commercial real estate practices existing at the time the insurance is issued and in the County where the Property is located. 10.2. Liabilitv Insurance. Trustor shall procure and maintain workers' compensation insurance for Trustor's employees and comprehensive general liability insurance covering Trustor, Trustee, and Beneficiary against claims for bodily injury or death or for damage occurring in, on, about, or resulting from the Property, or any street, drive, sidewalk, curb, or passageway adjacent to it, in standard fonn and with such insurance company or companies and in an amount of at least $3,000,000 combined single limit, or such greater P:\Clerical Services Depl\Margaret\Agreemenl,-Amendmenls,^gtml,-Amend 200)\03-10-20 532 No D 51 Deed ofTrusl,DOC II c c r '-- amount, as Beneficiary may require, which insurance shall include completed operations, product liability, and blanket contractual liability coverage that insures contractual liability under the indemnifications set forth in this Deed of Trust and the Transaction Documents (but such coverage or its amount shall in no way limit such indemnification). 10.3. Other Insurance. Trustor shall procure and maintain such other insurance or such additional amounts of insurance, covering Trustor and the Property, as (a) may be required by the terms of any construction contract for any improvements on the Property or by any governmental authority, other than Beneficiary, (b) may be specified in any other Transaction Documents, or (c) may be reasonably required by Beneficiary from time to time. 10.4. Form of Policies. All insurance required under this Section 10 shall be fully paid for and nonassessable. The policies shall contain such provisions, endorsements, and expiration dates as Beneficiary from time to time reasonably requests and shall be in such form and amounts, and be issued by such insurance companies doing business in the State of California, as Beneficiary shall approve in Beneficiary's sole and absolute discretion. Unless otherwise expressly approved in writing by Beneficiary, each insurer shall have a Best Rating of Class A, Category VIII, or better. All policies shall (a) contain a waiver of subrogation endorsement; (b) provide that the policy will not lapse or be canceled, amended, or materially altered (including by reduction in the scope or limits of coverage) without at least 30 days' prior written notice to Beneficiary; (c) with the exception of the comprehensive general liability policy, contain a mortgagee's endorsement (438 BFU Endorsement or equivalent), and name Beneficiary and Trustee as insureds; and (d) include such deductibles as Beneficiary may approve. If a policy required under this paragraph contains a co-insurance or overage clause, the policy shall include a stipulated value or agreed amount endorsement acceptable to Beneficiary. 10.5. Duplicate Originals or Certificates. Duplicate original policies evidencing the insurance required under this Section 10 and any additional insurance that may be purchased on the Property by or on behalf of Trustor shall be deposited with and held by Beneficiary and, in addition, Trustor shall deliver to Beneficiary (a) receipts evidencing payment of all premiums on the policies and (b) duplicate original renewal policies or a binder with evidence satisfactory to Beneficiary of payment of all premiums at least 30 days before the policy expires. In lieu of the duplicate original policies to be delivered to Beneficiary under this Section 10.5, Trustor may deliver an underlier of any blanket policy, and Trustor may also deliver original certificates from the issuing insurance company, evidencing that such policies are in full force and effect and containing information that, in Beneficiary's reasonable judgment, is sufficient to allow Beneficiary to ascertain whether such policies comply with the requirements of this Section 10. 10.6. Increased Coverage. If Beneficiary determines that the limits of any insurance carried by Trustor are inadequate or that additional coverage is required, Trustor shall, within 10 days after written notice from Beneficiary, procure such additional coverage as Beneficiary may require in Beneficiary's sole and absolute discretion. P,\Clerical Services Depl\Margarcl,^grecmcnu-Amcndmcms\Agnnls'Amcnd 2003\03-10-20 532 No D 51 Deed ofTrustDOC 12 c c c 10.7. No Separate Insurance. Trustor shall not carry separate or additional insurance concurrent in form or contributing in the event of loss with that required under this Section 10, unless endorsed in favor of Trustee and Beneficiary, as required by this Section 10 and otherwise approved by Beneficiary in all respects. 10.8. Transfer of Title. In the event of foreclosure of this Deed of Trust or other transfer of title or assignment of the Property in extinguishment, in whole or in part, of the Loan, all right, title, and interest of Trustor in and to all insurance policies required under this Section 10 or otherwise then in force with respect to the Property and all proceeds payable under, and unearned premiums on, such policies shall immediately vest in the purchaser or other transferee of the Property. 10.9. Replacement Cost. For purposes of this Section 10, the term "full insurable value" means the actual cost of replacing the Property in question, without allowing for depreciation, as calculated from time to time (but not more often than once every calendar year) by the insurance company or companies holding such insurance or, at Beneficiary's request, by appraisal made by an appraiser, engineer, architect, or contractor proposed by Trustor and approved by said insurance company or companies and Beneficiary. Trustor shall pay the cost of such appraisal. 10.10. Approval Not Warrantv. No approval by Beneficiary of any insurer may be construed to be a representation, certification, or warranty of its solvency and no approval by Beneficiary as to the amount, type, or form of any insurance may be construed to be a representation, certification, or warranty of its sufficiency. 10.11. Beneficiary's Right To Obtain. Trustor shall deliver to Beneficiary original policies or certificates evidencing such insurance at least 30 days before the existing policies expire. If any such policy is not so delivered to Beneficiary or if any such policy is canceled, whether or not Beneficiary has the policy in its possession, and no reinstatement or replacement policy is received before termination of insurance, Beneficiary, without notice to or demand on Trustor, may (but is not obligated to) obtain such insurance insuring only Beneficiary and Trustee with such company as Beneficiary may deem satisfactory, and pay the premium for such policies, and the amount of any premium so paid shall be charged to and promptly paid by Trustor or, at Beneficiary's option, may be added to the Loan. Trustor acknowledges that, if Beneficiary obtains insurance, it is for the sole benefit of Beneficiary and Trustee, and Trustor shall not rely on any insurance obtained by Beneficiary to protect Trustor in any way. 10.12. Dutv To Restore After Casual tv. If any act or occurrence of any kind or nature (including any casualty for which insurance was not obtained or obtainable) results in damage to or loss or destruction of the Property, Trustor shall immediately give notice of such loss or damage to Beneficiary and, if Beneficiary so instructs, shall promptly, at Trustor's sole cost and expense, regardless of whether any insurance proceeds will be sufficient for the purpose, commence and continue diligently to completion to restore, repair, replace, and rebuild P:IClerical Scrvicc~ DcplI.Marllarcl'Agrccmcnls-Amcndmcnls\Agrmls-Arncnd 2003103-10-20 532 No D SI Deed ofTrustDOC 13 c c c the Property as nearly as possible to its value, condition, and character immediately before the damage, loss or destruction. II. Assignment of Insurance and Condemnation Proceeds. Should the Property or any part or appurtenance thereof or right or interest therein be taken or damaged by reason of any public or private improvement, condemnation proceeding (including change of grade), fire, earthquake or other casualty, or in any other manner, Beneficiary or Trustee may, at its option, commence, appear in and prosecute, in its own name, any action or proceeding, or make any reasonable compromise or settlement in connection with such taking or damage, and obtain all compensation, awards or other relief therefor. All compensation, awards, damages, rights of action and proceeds, including the policies and the proceeds of any policies of insurance affecting the Property, are hereby assigned to Beneficiary, but no such assignments shall be effective to invalidate or impair any insurance policy. Trustor further assigns to Beneficiary any return premiums or other repayments upon any insurance at any time provided for the benefit of the Beneficiary and all refunds or rebates made of taxes or assessments on the Property, and Beneficiary may at any time collect said return premiums, repayments, refunds and rebates in the event of any default by Trustor under the Disposition and Development Agreement, the Note or, this Deed of Trust or any other Transaction Documents. No insurance proceeds or condemnation awards at any time assigned to or held by Beneficiary shall be deemed to be held in trust and Beneficiary may commingle such proceeds with its general assets and shall not be liable for the payment of any interest thereon. Trustor also agrees to execute such further assignments of any such policies, compensation, award, damages, rebates, return of premiums, repayments, rights of action and proceeds as Beneficiary or Trustee may require. 12. Use of Insurance Proceeds. After any damage by casualty to the Property, whether or not required to be insured against under the policies to be provided by Trustor, Trustor shall give prompt written notice thereof to Beneficiary generally describing the nature and cause of such casualty and the extent of the damage to or destruction of the Property. Trustor shall have the obligation to promptly repair the damage, regardless of whether and to the extent the casualty was covered by an insurance policy. For these purposes, Beneficiary shall make available to Trustor proceeds of any insurance policy covering the casualty and maintained by Trustor under and subject to each of the following terms and conditions: (a) the "Proceeds") shall following conditions: Insurance proceeds which are directly attributable to the damage (herein be released to Trustor upon and subject to satisfaction of each of the (i) There exists no default under the Disposition and Development Agreement, this Deed of Trust or any other Transaction Documents at any time prior to or during the course of reconstruction; (ii) Receipt by Beneficiary of satisfactory written evidence that any proposed restorations by Trustor will comply with all statutes, ordinances, r\C1er!caJ Services Depl\Margaret\Agreemenls_Amendmenls\Agmm_Amend 2003\03-10-20 532 No 0 SI Deed ofTrusl DOC 14 c r '-' r "- regulations, rules, rulings, restrictive covenants, reciprocal easements, leases and contracts; that all proposed plans and specifications are approved by all required governmental agencies; and that Trustor has obtained all necessary building and other permits and approvals for such reconstruction; (iii) Receipt by Beneficiary of proof reasonably satisfactory to Beneficiary that there exists and will continue to exist, until the Property is reasonably expected to be restored and fully occupied, a source of funds sufficient to pay the Loan as and when due. Such computation shall include Beneficiary's estimate of the amount necessary to pay all of the sums due on the Note over the projected period of reconstruction, and Beneficiary may require Trustor to establish and fund a holdback account up to the amount of the difference between the anticipated debt service and operating expenses of Trustor. In the event of any default under the Note, this Deed of Trust, any other Transaction Documents or any reconstruction requirements, Beneficiary may, at its option, apply any portion or all of such amounts against accrued interest and the outstanding amounts due under the Note; (iv) Receipt by Beneficiary from Trustor of sufficient cash funds to cover one hundred percent (I 00%) of any difference between the estimated costs of completion, as certified by an architect or engineer approved by Beneficiary in writing, and the Proceeds, the amount of such difference shall be paid in cash to Beneficiary with said amount and any interest earned thereon shall be released to Beneficiary, as necessary, following the exhaustion of available insurance proceeds, or at such earlier time deemed appropriate by Beneficiary. In the event of any default under the Note, this Deed of Trust, or any reconstruction requirements, Beneficiary may, at its option, apply any portion or all of such amounts and interest against the accrued interest and principal sums outstanding under the Note; (v) Receipt by Beneficiary of a certificate executed by Trustor describing the work to be performed in connection with such restoration and a certificate by an independent architect or engineer selected or approved by Beneficiary in writing stating that the work described in the Trusto(s certificate is adequate to restore the Property to substantially the same size, design, quality and condition as existed prior to the damage. The architect's or engineer's certificate shall include its estimate of all costs and expenses which will be required to complete such restorations; and (vi) Such additional conditions as may reasonably be imposed by Beneficiary to provide assurance that the Proceeds will be used to restore the Property to substantially the same condition, to the extent possible, as existed prior to the damage or taking, including, without limitation, Beneficiary's prior P:\Clerical ServIces Depl\Margarc\\Agrccmenls-Amendmenls\Agrmts-Amcnd 2003\03-10-20 532 No 0 51 Deed ofTruslDOC 15 c c c written approval of all permits, plans, specifications and construction contracts for such restoration. (c) Beneficiary shall disburse the Proceeds in increments corresponding to the percentage of completion costs then incurred for labor performed and materials furnished (which may, at Beneficiary's discretion, be subject to reasonable holdbacks required by Beneficiary, not exceeding ten percent (10%) of the total estimated cost of completion and which will be released upon lien-free completion of the restorations in accordance with the requirements of this Deed of Trust and the expiration of the periods within which any mechanic's or materialman's lien may be filed, without the filing of any such lien). Disbursements shall be conditioned upon Beneficiary's written confirmation that all of its requirements therefor have been satisfied, including its receipt of periodic inspection and completion percentage certificates executed by the project architect approved by Beneficiary in writing, payment acknowledgments and unconditional lien releases, and such other conditions to periodic disbursements as are customarily imposed by institutional commercial lenders in connection with construction loans, no defaults or misrepresentations of Trustor and Trustor's obtaining all title insurance endorsements, payment and performance bonds, and builder's risk policies required by Beneficiary. Trustor shall, during the progress of the work, also submit to the Beneficiary, at periodic intervals not less frequently than monthly, a certificate satisfactory to Beneficiary furnished by an architect or engineer approved by Beneficiary in writing showing the cost of labor and materials incorporated into the work during the period specified in the certificate, which period shall not include any part of the period covered by any other such certificate; and (d) After completion of the restoration and subject to the conditions herein stated, and, if Trustor is not then in default under the Note, this Deed of Trust or any other Transaction Documents, Beneficiary shall pay to Trustor (or such other persons or entities that may have an interest therein) the undisbursed Proceeds and Trustor's deposit for any estimated restoration expense held by Beneficiary upon delivery to Beneficiary of (i) a certificate executed by Trustor showing that the work has been completed and that all bills for labor performed and materials furnished in connection therewith have been paid, (ii) unconditional lien releases and other appropriate written acknowledgments of payment in full executed by all contractors and subcontractors performing labor on or furnishing materials to the Property; (iii) a certificate executed by an architect or engineer approved by Beneficiary confirming that the Property has been restored to substantially the same size, design, quality and condition as existed immediately prior to the damage and in accordance with all applicable federal, state, local and other governmental laws and regulations; and (iv) a certificate of occupancy and other permits issued by the appropriate governmental authorities authorizing the occupancy of the Property for its intended purposes and use. If (i) any of the conditions in subparagraph 12(b), above, are not fulfilled within sixty (60) days after the date of the casualty, or if the reconstruction cannot be completed within such 60 day period, within such additional time as may be reasonably necessary to complete the P:\Clcrlcal Services Depl~\1argare(Agrecmcnls.Amcndmcnls"Agrml,.Amcnd 2003103-10.20 532 No D 51 Deed ofTruslDOC 16 c c c reconstruction, not to exceed one hundred eighty (180) days, and provided such additional time does not result in a breach by the Trustor under the Note, this Deed of Trust or any other Transaction Documents; or (ii) if Trustor fails to exercise diligence in promptly commencing or continuously prosecuting the work; or (iii) if Trustor is otherwise in default under the Note, this Deed of Trust, other Transaction Documents or any reconstruction requirements set forth therein or herein, Beneficiary may, at its option, apply the Proceeds and any deposits made by Trustor hereunder to the indebtedness secured hereby, or to complete the necessary repairs and use the Proceeds for the payment thereof. If the Proceeds are so applied to the indebtedness and, together with any other payments due to Beneficiary under the Note and all other debts of Trustor to Beneficiary are discharged, Beneficiary shall not have the right to require the Property to be repaired under the terms of this Deed of Trust, but Beneficiary's rights under any other lien that it holds against the Property and which is not also required to be released shall not be thereby impaired or affected. Trustor shall not commence any repairs or reconstruction of any casualty until Beneficiary consents in writing thereto, which consent may be withheld by Beneficiary in its sole discretion, until all of the conditions contained in this paragraph are satisfied. All work of repairing or restoring damage shall be done in a good and workmanlike manner with materials of good quality and in conformity with all applicable laws, ordinances, rules and regulations. Nothing herein contained shall be construed as authorizing the Trustor to subject the Property to any mechanic's, materialman's or other lien for the payment of bills for material furnished or labor performed in connection with any work contemplated by this paragraph. In any event in which the Beneficiary is not otherwise obligated to permit the insurance proceeds to be applied to the restoration of the Property as hereinabove described and, at the option of Beneficiary, the proceeds of a loss under any policy, whether or not endorsed payable to Beneficiary, may be applied in payment of the principal, interest or any other sums secured by this Deed of Trust, whether or not then due, or to the restoration or replacement of any building on the Property, without in any way affecting the enforceability or priority of the lien of this Deed of Trust or the obligation of the Trustor or any other person for payment of the indebtedness hereby secured or the reconstruction of the damaged improvements, whether such Trustor be the then owner of said building or improvements or not. 13. Use of Condemnation Awards. Should the Property or any portion thereof or any improvements thereon be taken or damaged by reason of any public improvement or condemnation proceeding, or by any other form of eminent domain, Trustor agrees that Beneficiary shall be entitled to all compensation, awards and other payments or relief therefor and may, at its option, commence, appear in or prosecute in its own name any action or proceeding or make any reasonable compromise or settlement in connection with such taking or damage, and Trustor agrees to pay Beneficiary's costs and reasonable attorneys' fees incurred in connection therewith. All such compensation, awards, damages, rights of actions and proceeds may be applied by Beneficiary toward the repair of any damage to the improvements on any portion of the Property not subject to the taking as and subject to the same conditions herein P:\Clerical Services Dept\MargarciAgrcemems-AmeodmenIS','\grmls-Amend 2oo3\OJ-l0-20 532 No D 51 Deed ofTnm.DOC I7 c r '-' c provided with respect to the disposition of insurance proceeds; provided, however, that if the taking results in a loss of the Property to an extent which, in the reasonable opinion of Beneficiary, renders or will render the Property not economically viable or which substantially impairs Beneficiary's security or lessens to any extent the value, marketability or intended use of the Property, Beneficiary may apply the condemnation proceeds to reduce the unpaid indebtedness secured hereby in such order as Beneficiary may determine. Trustor agrees to execute such further assignments of condemnation proceeds as Beneficiary or Trustee may from time to time require. If so applied, any proceeds in excess of the unpaid principal and accrued interest due under the Note plus all other sums due to Beneficiary from Trustor shall be paid to Trustor or Trustor's assignee. 14. Propertv Taxes and Assessments. Trustor shall pay in full on or before the due date thereof all rents, taxes, assessments and encumbrances, with interest, that may now or hereafter be levied, assessed or claimed upon the Trustor's ownership or use of the Property that is the subject of this Deed of Trust or any part thereof, and upon request, provide the Beneficiary with copies of official receipts for payment therefor, and shall pay all taxes imposed upon, and reasonable costs, fees and expenses of, this Deed of Trust. 15. Assessment Districts. Trustor agrees not to consent to inclusion of the Land in any local improvement or special assessment district or to the imposition of any special or local improvement assessment against the Property, without Beneficiary's prior written consent. 16. Mortgage Taxes. In the event of the passage after the date of this Deed of Trust of any federal, state or municipal law, ordinance or regulation relating to the taxation of mortgages, deeds of trust or debts secured thereby so as to tax or assess any interest of Beneficiary or any payments secured hereby. Trustor shall bear and pay the full amount of such taxes. 17. Special Assessment and Insurance Reserves. Trustor shall, at the request of the Beneficiary, pay to Beneficiary equal monthly installments of the special assessments and insurance premiums estimated by the Beneficiary next to become due, in addition to any other periodic payment or performances owed by Trustor under the Note or any other Transaction Documents or this Deed of Trust, so that thirty (30) days before the due date thereof, or of the first installment thereof, Beneficiary will have on hand an amount sufficient to pay the next maturing assessments and insurance premiums. The amount of the additional payment to be made on account of assessments and insurance premiums shall be adjusted annually or more frequently as Beneficiary deems necessary and any deficit shall be immediately paid by Trustor upon request and any surplus shall be credited on the mortgage account. Subsequent payments on account of assessments and insurance premiums shall be made in accordance with the next estimate by the Beneficiary of annual requirements. To the extent permitted by applicable law, all monies paid to Beneficiary on account of assessments or insurance premiums may be commingled and invested with Beneficiary's own funds and, unless and to the extent required by law, shall not bear interest for Trustor. Beneficiary shall not exercise the rights granted in this paragraph so long as all of the following conditions are met: P.IClCfLcal Service, Dept\MargarcC'Agreemenls-AmcndmemsAgrrnts-Amcnd 1003\03-l0-20 532 No D 51 Deed orTrustDOC 18 c c c (a) There is no default under the Note, this Deed of Trust or any other Transaction Documents; and (b) Trustor pays all assessments and insurance premiums prior to delinquency. Upon Trustor's failure to comply with either of conditions (a) or (b), above, Beneficiary may, at its option, then or thereafter exercised, require Trustor to pay the additional sums described in this paragraph. 18. Trustor's Right to Contest Taxes. Trustor shall have the right to contest any real property tax or special assessment so long as (a) no defaults exist under the Note, this Deed of Trust or any other Transaction Documents; (b) Trustor makes any payment or deposit or posts any bond as and when required as a condition to pursuing such contest; (c) Trustor commences such contest prior to such tax or assessment becoming delinquent and continuously pursues the same in good faith and with due diligence; (d) such contest or any bond furnished by Trustor stays the foreclosure of any lien securing the payment of any such tax or assessment; and (e) Trustor pays any tax or assessment within ten (IO) days following the date ofresolution of such contest. 19. Report of Real Estate Transaction. Trustor has made or provided for making, or will make or provide for making, on a timely basis, any reports or returns required by state or local law relating to the Property, or the development of the Property, notwithstanding the fact that the primary reporting responsibility may fall on the Beneficiary, or other party. Trustor's obligations under this paragraph will be deemed to be satisfied, if proper and timely reports and returns required under this paragraph are filed by a title company involved in each real estate transaction relating to the Property, but nothing contained herein shall be construed to require such returns or reports to be filed by Beneficiary. 20. Leases. With respect to any leases currently or hereafter relating to any portion of the Property, Trustor agrees that: (a) Prior to the execution of any such lease or rental agreement by the Trustor, the Trustor shall give the Beneficiary thirty (30) days written notice setting forth the identity of the tenant and the relevant terms of the proposed lease; (b) Each such lease shall comply with the covenants of the Trustor under the Note, the Agency Quitclaim Deed, this Deed of Trust and the other Transaction Documents; (c) Trustor shall fully comply with all of its obligations under all leases on the Property, so that the same shall not become in default and shall do all that is necessary to preserve the same in force; PIClerical Services Dcpt\Margarel\Agrecmenls-Amcndrnents>Agrnlls-Amend 2003\03-10-20 532 No D 51 Deed ofTrust.DOC 19 c r "'-" r' '- (d) thereunder; and Trustor shall not permit an assignment of any leases, or any subletting (e) Beneficiary and its successors and assigns (including any purchaser at a foreclosure or trustee's sale) shall have the right, at its option, to recognize and continue in effect any such leasehold interests following any foreclosure or trustee's sale hereunder. 21. Assignment of Leases. Trustor hereby unconditionally and absolutely assigns, transfers and sets over unto Beneficiary, all leases, subleases, rental agreements, occupancy agreements, licenses, concessions, entry fees and other agreements that grant a possessory. interest or right of entry in all or any part of the Property, together with all rents, issues, deposits and profits of the Property, together with the immediate and continuing right to collect and receive the same, for the purpose and upon the terms and conditions hereinafter set forth. Trustor further unconditionally and absolutely assigns, transfers and sets over unto Beneficiary all of its right, title and interest in and to any plans, drawings, specifications, permits, engineering reports and land planning maps, which it now has or may hereafter acquire regarding any improvements now on or to be constructed upon the Property. Beneficiary confers upon Trustor a license to collect and retain the rents, issues, deposits and profits of the Property, as they become due and payable, subject, however, to the right of Beneficiary upon a default hereunder to revoke said license, at any time, in its sole discretion and without notice to Trustor. Beneficiary may revoke said license and collect and retain the rents, issues, deposits and profits of the Property assigned herein to Beneficiary upon the occurrence of an Event of Default hereunder or Trustor's default under any of the obligations secured hereby, and without taking possession of all or any part of the Property, and without prejudice to or limitation upon any of its additional rights and remedies granted pursuant hereto or pursuant to the Note or any other Transaction Documents, and Beneficiary shall, in its sole and absolute discretion, have the right to apply such income for the payment of all expenses or credit the net amount of income that it receives from the Property, to the indebtedness in the manner, order and amounts as Beneficiary shall determine. In the event the Beneficiary exercises or is entitled to exercise any of its rights or remedies under this Deed of Trust as a result of the default of the Trustor under the Note, and if any lessee, sublessee or assignee under any lease assigned under this paragraph files or has filed against it any petition in bankruptcy or for reorganization or undertakes or is subject to similar action, Beneficiary shall have, and is hereby assigned by Trustor, all of the rights that would otherwise inure to the benefit of Trustor in such proceedings, including, without limitation, the right to seek "adequate protection" of its interests, to compel assumption or rejection of any such lease and to seek such claims and awards as may be sought or granted in connection with the rejection of any such lease. Unless otherwise agreed to by Beneficiary in writing, Beneficiary's exercise of any of the rights provided in this paragraph shall preclude Trustor from the pursuit and benefit thereof, without any further action or proceeding of any nature. The foregoing assignment shall not impose upon Beneficiary any duty to produce rents from the Property, and such assignment shall not cause Beneficiary to be a "mortgagee in possession" for any purpose. The rights granted in this paragraph shall be in addition to and not in derogation of any similar or related rights granted to Beneficiary in any separate assignment of leases and rents. P:'>Clerical Services Dept'Margarel\Agrcemenls-Amen.dmcnls\Agrmls-Amend 2003\0)-10-20 532 No D SI Deed ofTrusl.DOC 20 c r "- r '- 22. Impairment of Securitv. Trustor shall not, without first obtaining Beneficiary's written consent, assign any of the rents or profits of the Property or change the general nature or use of the Property or initiate or acquiesce in any zoning reclassification, or do, or suffer to be done, any act or thing that would impair the security of Beneficiary's lien upon the Property or the rents thereof. Trustor shall not, without the written consent of Beneficiary, (i) initiate or support any zoning reclassification of the Property, seek any variance under existing zoning ordinances applicable to the Property or use or permit the use of the Property in a manner that would result in such use becoming a non-conforming use under applicable zoning ordinances; (ii) modify, amend or supplement any easement, reservation, restriction, covenant, condition or encumbrance pertaining to the Property; (iii) impose or consent to any restrictive covenant or encumbrance upon the Property, execute or file any subdivision or parcel map affecting the Property or consent to the annexation of the Property to any municipality; or (iv) permit or suffer the Property to be used by the public or any person in such manner as might make possible a claim of any implied dedication or easement. 23. Defense of Suits. Trustor shall appear in and defend any suit, action or proceeding that might affect the value, priority or enforceability of this Deed of Trust or the Property itself or the rights or powers of Beneficiary or Trustee, including any suits relating to damage to property or dcath or personal injuries, whether or not Trustor is ultimately found liable for any negligence or other wrongful conduct or inaction. Trustor, following mutual negotiations with Beneficiary, has waived and does hereby waive any immunity to such liability to Beneficiary under any industrial insurance or similar statute, to the extent such immunity would impair Beneficiary's rights against Trustor. Should Beneficiary elect to appear in or defend any such action or proceeding or be made a party to any such action or proceeding by reason of this Deed of Trust, or elect to prosecute such action as appears necessary to preserve the value, priority or enforceability of this Deed of Trust or the Property itself, Trustor will at all times indemnify Beneficiary and Trustee from and, on demand, reimburse Beneficiary and Trustee for, any and all loss, damage, expense or cost, including cost of evidence of title, expert witness fees and attorneys' fees, arising out of or incurred in connection with any such suit, action or proceeding, and any appeal or petition for review thereof, and the sum of such expenditures shall be secured by this Deed of Trust with interest at the rate of 10% per annum and shall be due and payable on demand. Trustor shall pay costs of suit, cost of evidence of title, expert witness fees and reasonable attorneys' fees in any proceeding or suit brought by Beneficiary to foreclose this Deed of Trust and in any appeal therefrom or petition for review thereof. 24. Assignments and Transfers. Trustor acknowledges that Beneficiary relied upon Trustor's financial statements, credit history, business and real property managerial expertise and other factors personal to Trustor in making the Loan, and Trustor covenants not to transfer any of the interest in the Property or to permit the transfer of any interest in Trustor without first receiving Beneficiary's express written consent in each instance. A breach of this covenant shall constitute a default under the Note and this Deed of Trust. All sums then due to Beneficiary by Trustor hereunder, under the Note may, at Beneficiary's option, be declared immediately due and P:\Clctlcal Services Dcpl\Margarclv\grecmcnls.Amcndrru:nl~\Agrmts.Amcl\d 2003\03-10-20 532 No D SI Deed ofTrust.DOC 21 c payable if any of Trustor's interests in the Property, or any part thereof, are sold or transferred, voluntarily or involuntarily, without Beneficiary's prior written consent. c 25. Matters Requiring Beneficiarv's Prior Consent. So long as any part of the Loan remains unpaid, Trustor shall not do or suffer any of the following without Beneficiary's prior written consent, which Beneficiary may grant or withhold in each instance in Beneficiary's sole and absolute discretion: (i) change its form of organization; (ii) modify its organizational documents; (iii) cause itself to become organized as the same or any other type of legal entity in a jurisdiction other than that under the laws of which it is organized on the date of this Deed of Trust; (iv) merge with or into, consolidate with, or become subject to control by any other legal entity; (v) except as permitted pursuant to Section 24, make or suffer any change in its ownership or management, or become subject to control by persons other than its owners on the date of this Deed of Trust, voluntarily or by operation of law; (vi) sell, convey, assign, or transfer any Property or any interest therein, whether legal or equitable, directly or indirectly; (vii) create, incur, assume,suffer to exist, or otherwise become liable on any indebtedness relating to the Property other than (1) the Loan; and (2) ordinary course trade payables incurred in connection with the ownership and operation of the Property, none of which shall exceed an amount reasonable and customary for such an expenditure for properties similar in type, size, and character to the Property located in the area of the Property; or (viii) grant or suffer the imposition of any lien upon, security interest in, or other encumbrance of any of the Property. Any violation of the provisions of this Section 25 shall constitute an Event of Default under this Deed of Trust and each other Transaction Document, with respect to which Beneficiary shall have the right to accelerate the maturity of the Loan and pursue all other remedies available to Beneficiary under this Deed of Trust, any other Transaction Document, and/or applicable law. 26. Further Encumbrances. Trustor acknowledges that Beneficiary relied upon the Property not being subject to additional liens or encumbrances for reasons including, but not limited to, the possibility of competing claims or the promotion of plans disadvantageous to Beneficiary in bankruptcy; the risks to Beneficiary in a junior lienholder's bankruptcy; questions involving the priority of future advances, the priority of future leases of the Property, the marshaling of Trustor's assets, and the Beneficiary's rights to determine the application of condemnation awards and insurance proceeds; the impairment of the Beneficiary's option to accept a deed in lieu of foreclosure; the increased difficulty of reaching agreements for workouts or to the actions to be taken by trustees, receivers, liquidators and fiduciaries; and Beneficiary's requirements of Trustor's preservation of its equity in the Property and the absence of debt that could increase the likelihood of Trustor being unable to perform its obligations when due. Therefore, as a principal inducement to Beneficiary to make the Loan secured by this Deed of Trust, and with the knowledge that Beneficiary will material1y rely upon this paragraph in so doing, Trustor covenants not to encumber the Property, without first receiving Beneficiary's express written consent in each instance, which consent may be withheld by Beneficiary in its sole discretion. A breach of this covenant shall constitute a default under the Note and this Deed of Trust, and Beneficiary may exercise all remedies available to Beneficiary under the Note or this Deed of Trust. Without limiting the generality of the foregoing, no mortgages, deeds of trust ,-- '- P:IClcr>cal Services Dcph!\largarctl.".grecmcms.AmclldmelllslAgnnls-Arnelld 2003\03-]0-20 ~32 No D 51 Deed ofTrust.DOC 22 c c c or other forms of security interests prior or subordinate to the security interests of Beneficiary shall encumber any real or personal property that is the subject of any lien or security interest granted to Beneficiary, without Beneficiary's prior written consent. 27. Event of Default. An "Event of Default" shall be deemed to have occurred in any of the following circumstances: (a) Failure of Trustor to satisfy any perfonnance or payment obligation required under this Deed of Trust, the Note, the Agency Quitclaim Deed or any other Transaction Document when due; (b) Failure of Trustor to properly perform its obligations under this Deed of Trust, the Note, the Agency Quitclaim Deed or any other Transaction Document, by a date specified herein or therein or in a written notice to Trustor, if applicable; (c) The condemnation, seizure or appropriation of, or the occurrence of an uninsured casualty with respect to, any material (as determined by Beneficiary) portion of the Property; (d) Trustor becomes insolvent or generally is not paying its debts as they become due, as defined in the United States Bankruptcy Reform Act, as amended from time to time (which Act, as amended, is herein called the "Bankruptcy Code"), or shall file a voluntary petition in bankruptcy seeking to effect a reorganization plan or other arrangement with creditors or any other relief under the Bankruptcy Code or under any other state or federal law relating to bankruptcy or other relief for debtors, whether now or hereafter in effect, or shall consent to or suffer the entry of any order for relief in any involuntary case under the Bankruptcy Code, or shall be the defendant or subject of any involuntary petition filed under the Bankruptcy Code that is not dismissed within ninety (90) days of the filing thereof, or shall make an assignment for the benefit of creditors; (e) Any court (or similar tribunal) having jurisdiction over Trustor or any of the Property or other property of Trustor shall enter a decree or order appointing a receiver, trustee, guardian, conservator, assignee in bankruptcy or insolvency of Trustor, of any of the Property, of any other real property of Trustor, of any other significant asset of Trustor, or shall enter a decree or order for relief in any involuntary case under the Bankruptcy Code; (I) The entry of any final judgment or arbitration award against Trustor that is not paid or stayed pending appeal, or the sequestration or attachment of, or any levy or execution upon (i) any of the Property, (ii) any other collateral provided by Trustor or any other person under this Deed of Trust or as security for performance or payment of the Loan, or (iii) any significant portion of the other assets of Trustor, which is not released, expunged or dismissed prior to the earlier of (I 0) days after such sequestration, attachment or execution or five (5) days before the sale of any such assets; P.IClencal Services Dcpt\MargarcIAgrcements_Amcndmcnls'Agrmls_Amend 2003103.10.20 532 No D SI Deed ofTruSIDOC 23 c c c (g) Trustor shall dissolve, liquidate or wind up its affairs or shall bring any legal action or take any other action contemplating such dissolution, liquidation or winding up; (h) The determination by Beneficiary that any representation, warranty or statement contained in this Deed of Trust, the Disposition and Development Agreement, the Note or in any other writing delivered to Beneficiary in connection with the Disposition and Development Agreement or any other Transaction Documents was incomplete, untrue or misleading in any material respect as of the date made; (i) The enactment of any law that deducts from the value of the Property for the purpose of taxation of any lien thereon or imposing upon Beneficiary the payment of the whole or any part of the taxes, assessments, charges or liens herein required to be paid by Trustor or changing in any way the laws relating to the taxation of deeds of trust or debts secured by deeds of trust or Beneficiary's interest in the Property or the manner of collection of taxes so as to affect this Deed of Trust or the Note or any other Transaction Documents or the holder thereof or imposing a tax, other than a Federal or state income tax, on or payable by Trustee or Beneficiary by reason of their ownership of this Deed of Trust or the Note or any other Transaction Documents and, in such event, Trustor, after demand by Beneficiary, does not pay such taxes or assessments or reimburse Beneficiary therefor or, in the opinion of counsel for Beneficiary, it might be unlawful to require Trustor to make such payment or the making of such payment might result in the imposition of interest costs beyond the maximum amount permitted by applicable law; (j) The occurrence of a default by Trustor under any of the contracts or agreements assigned to Beneficiary under this Deed of Trust, where such default is not cured within the applicable cure period, if any, or the failure of Trustor to diligently enforce its rights and remedies under such contracts and agreements upon the default of any other party thereto; and (k) Trustor acknowledges and agrees that all material non-monetary defaults are conclusively deemed to be and are defaults impairing the security of this Deed of Trust, and that Beneficiary shall be entitled to exercise any appropriate remedy, including, without limitation, foreclosure of this Deed of Trust, upon the occurrence of any such material non- monetary default. 29. Rights and Remedies on Default. Upon the occurrence of any Default or Event of Default under this Deed of Trust and at any time thereafter, Trustee or Beneficiary may exercise anyone or more of the following rights and remedies: (a) Note Remedies. Beneficiary may exercise any right or remedy provided for in the Note, or any other Transaction Documents; P;\Clerical S~n.'iccs Oepl'Margarel\Agrccmenls-Amcndmcn15'Agrmts-Arnend 2003\03-10.20 532 No 0 5t Deed of Trust DOC 24 c c ,-. r "- (b) Acceleration. Beneficiary may declare the Loan and all other performances or sums secured by this Deed of Trust immediately due and payable; (c) Foreclosure Rights. Beneficiary may declare all performances or sums secured by this Deed of Trust immediately due and payable either by commencing an action to foreclose this Deed of Trust as a mortgage, or by the delivery to Trustee of a written declaration of default and demand for sale and of written notice of default and of election to cause the Property to be sold, which notice Trustee shall cause to be duly filed for record in case of foreclosure by exercise of the power of sale herein. Should Beneficiary elect to foreclose by exercise of the power of sale herein, Beneficiary shall also deposit with Trustee this Deed of Trust, the documents evidencing the Loan and any receipts and evidence of expenditures made and secured hereby as Trustee may require, and notice of sale having been given as then required by law and after lapse of such time as may then be required by law after recordation of such notice of default, Trustee, without demand on Trustor, shall sell the Property at the time and place of sale fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder upon any terms and conditions specified by Beneficiary and permitted by applicable law. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to any purchaser its deed or deeds conveying the Property, or any portion thereof, so sold, but without any covenant or warranty, express or implied. The recitals in such deed or deeds of any matters or facts, shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee or Beneficiary, may purchase all or any portion of the Property, as applicable, at sale. (d) Right to Rescind. Beneficiary, from time to time before Trustee's sale, may rescind any such notice of breach or default and of election to cause the Property to be sold by executing and delivering to Trustee a written notice of such rescission, which notice, when recorded, shall also constitute a cancellation of any prior declaration of default and demand for sale. The exercise by Beneficiary of such right of rescission shall not constitute a waiver of any breach or default then existing or subsequently occurring, or impair the right of Beneficiary to execute and deliver to Trustee, as above provided, other declarations of default and demand for sale, and notices of breach or default, and of election to cause the Property to be sold to satisfy the obligations hereof, nor otherwise affect any provision, agreement, covenant or condition of the Note, the Agency Quitclaim Deed and/or of this Deed of Trust or any of the rights, obligations or remedies of the parties hereunder. (e) UCC Remedies. Beneficiary shall have all the rights and remedies of a secured party under the California Commercial Code, including, without limitation, Section 9501(4) thereof. Upon request, Trustor shall assemble and make such collateral available to Beneficiary at a place to be designated by Beneficiary that is reasonably convenient to both parties. Upon repossession, Beneficiary may propose to retain the collateral in partial satisfaction of the Loan or sell the collateral at public or private sale in accordance with the California P:\CICrlCilI Ser\'lce~ Dcpl""....largarel\Agreemenls.AmendmenlS\Agrrms-Amend 1003\03-10.20 532 No D 51 Deed ofTruslDOC 25 c c c Commercial Code or any other applicable statute. Such sale may be held as a part of, distinctive from or without a trustee's sale or foreclosure of the real property secured by this Deed of Trust. If any notification of disposition of all or any portion of the collateral is required by law, such notification shall be deemed reasonably and properly given, if mailed at least ten (10) days prior to such disposition. If Beneficiary disposes of all or any part of the collateral after default, the proceeds of disposition shall be applied in the following order: (i) to the reasonable expenses of retaking, holding, preparing for sale, selling the collateral, and the like; (ii) to the reasonable attorneys' fees and legal expenses incurred by Beneficiary; and (iii) to the satisfaction of the indebtedness secured by this Deed of Trust. (f) Remedial Advances. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, without obligation so to do and without demand upon Trustor and without releasing Trustor from any obligation hereof, may (i) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the Property for such purposes; (ii) commence, appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, (iii) pay, purchase, contest or compromise any encumbrance, charge, lien, tax or assessment, or the premium for any policy of insurance required herein; and in exercising any such power, incur any liability, expend whatever amounts in its absolute discretion it may deem necessary therefor, including cost of evidence of title, employ counsel and pay such counsel's fees. Beneficiary shall be subrogated to the rights and lien interests of any person who is paid by Beneficiary pursuant to the terms of this paragraph. Trustor shall repay immediately on written notice to Trustor all sums expended or advanced hereunder by or on behalf of Beneficiary, with interest from the date of such advance or expenditure at the rate of 10% per annum, and the repayment thereof shall be secured hereby. (g) Summary Possession. Beneficiary may, at its option, either in person or by agent, employee or court-appointed receiver, enter upon and take possession of the Property and continue any work of improvement, repair or renovation thereof at Trustor's expense and lease the same or any part thereof, making such alterations as it finds necessary, and may terminate in any lawful manner any lease(s) of the Property, exercising with respect thereto any right or option available to the Trustor. The entering upon and taking possession of the Property, the collection of rents, issues and profits, or the proceeds of fire and other insurance policies or compensation or awards for any taking or damage to the Property, and the application or release thereof shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. P\Clcnca! Ser\'ice~ DepI\Mar~arcl\AgrecmcnlS-Amcndmcnls\Agrmls_Asnend 2003\0).10-20 532 No D Sl rn.cd ofTrusLDOC 26 - \..... r "-' c (h) Collection of Rents. Beneficiary may require any tenant or other user of the Property to make payments of rent or use fees directly to Beneficiary, regardless of whether Beneficiary has taken possession of the Property. If any rents are collected by Beneficiary, then Trustor hereby irrevocably designates Beneficiary as Trustor's attorney-in-fact to endorse instruments received in payment thereof in the name of Trustor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Beneficiary in response to Beneficiary's demand shall satisfy the obligation for which the payments are made, whether or not any proper grounds for the demand existed. Beneficiary may exercise its rights under this paragraph either in person, by agent or through a receiver. (i) Beneficiary's Enforcement of Leases. Beneficiary is hereby vested with full power to use all measures, legal and equitable, deemed by it necessary or proper to collect the rents assigned in this Deed of Trust, including the right, in person or by agent, employee or court-appointed receiver, to enter upon the Property, or any part thereof, and take possession thereof forthwith to the extent necessary to effect the cure of any default on the part of Trustor as lessor in any leases or upon Trustor's default under the Note. Trustor hereby grants to Beneficiary full power and authority to exercise all rights, privileges and powers herein granted at any and all times hereafter, without notice to Trustor, including the right to operate and manage the Property, make and amend leases and perform any other acts reasonably necessary to protect the value, priority or enforceability of any security for the obligations of the Trustor under the Note or this Deed of Trust and use and apply all of the rents and other income herein assigned to the payment of the costs of exercising such remedies, of managing and operating the Property, and of any indebtedness or liability of Trustor to Beneficiary, including but not limited to the payment of taxes, special assessments, insurance premiums, damage claims, the costs of maintaining, repairing, rebuilding and restoring any improvements on the Property or of making the same rentable, attorneys' fees incurred in connection with the enforcement of this Deed of Trust, and any principal and interest payments due from Trustor to Beneficiary under the Note and this Deed of Trust, all in such order as Beneficiary may determine. Beneficiary shall be under no obligation to enforce any of the rights or claims assigned to it hereunder or to perform or carry out any of the obligations of the lessor under any leases and does not assume any of the liabilities in connection with or arising or growing out of the covenants and agreements of Trustor in any leases. It is further understood that this Deed of Trust shall not operate to place responsibility for the control, care, management or repair of the Property, or parts thereof, upon Beneficiary nor shall it operate to make Beneficiary liable for the carrying out of any of the terms and conditions of any leases, or for any waste of the Property by the lessee under any leases or by any other party, or for any dangerous or defective condition of the Property or for any negligence in the management, upkeep, repair or control of the Property resulting in loss or injury or death to any lessee, invitee, licensee, employee or stranger, except as may result from the gross negligence or willful misconduct of Beneficiary after taking possession of the Property hereunder. (j) Beneficiary's Enforcement of Contracts. Beneficiary shall have the right to enforce Trustors rights under all architect, engineering, construction and related contracts and P-\Clcrical Scrvice~ Dcp\ _\1argarc!"Agreement<;-Amendmenls\Agmlls-Amend 2003\03-10-20 532 No 0 $1 Dl'cd orTru<;IDOC 27 c c .-. \- to bring an action for the breach thereof in the name of Beneficiary or, at Beneficiary's option, in the name of Trustor, in the event any architect, engineer, contractor or other party breaches their respective contract or contracts, regardless of whether Beneficiary acquires or retains any interest in the Property. Trustor hereby irrevocably appoints Beneficiary as its attorney-in-fact for the purposes of the foregoing, which power shall be durable and coupled with an interest. Beneficiary does not assume and shall not be obligated to perform any of Trustor's obligations under said contracts nor shall Beneficiary be required to enforce such contracts or bring action for the breach thereof; provided however, any performance of the respective contracts specifically required by the Beneficiary in writing, following any default by Trustor under the Note, this Deed of Trust, any other Transaction Documents or the contracts, and which is properly and timely undertaken by the contractor, engineer or architect, shall be paid for by the Beneficiary in accordance with the terms and conditions of the contracts. Such payments shall be deemed additions to the amounts owed by Trustor to the Beneficiary under the Note and secured by this Deed of Trust and shall bear interest at the rate of 10% per annum from the date of advance to and including the date of full payment, and shall be secured by any deed of trust, collateral assignment of leases and rents, security agreement and other documents granted to secure the Loan. (k) Appointment of Receiver. Beneficiary has the right to have a receiver appointed to take possession of any or all of the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, to collect the income from the Property and apply the proceeds, over and above the cost of the receivership, against the Loan. The receiver may serve without bond, if permitted by law. Beneficiary's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the indebtedness secured hereby by a substantial amount. Employment by Beneficiary shall not disqualify a person from serving as a receiver. Upon taking possession of all or any part of the Property, the receiver or Beneficiary may: (i) use, operate, manage, control and conduct business on the Property and make expenditures for all maintenance and improvements as in its judgment are necessary and proper; (ii) collect the income from the Property and apply such sums to the expenses of use, operation and management; and (iii) at Beneficiary's option, complete any construction in progress on the Property, and in that connection pay bills, borrow funds, employ contractors and make any changes in plans or specifications as Beneficiary deems reasonably necessary or appropriate. If the revenues produced by the Property are insufficient to pay expenses, the receiver may borrow, from Beneficiary or otherwise, as Beneficiary may deem reasonably necessary for the purposes stated in this paragraph. The amounts borrowed or advanced shall be payable on demand and bear interest from the date of expenditure until repaid at the rate of 10% per annum. Such sums shall become a part of the debt secured by this Deed of Trust. (I) Specific Enforcement. Beneficiary may specifically enforce any covenant in this Deed of Trust or the Trustor's compliance with its warranties herein and may restrain and enjoin the breach or prospective breach of any such covenant or the noncompliance with any P:Clcncal St:rvicc~ Dcpl\Mar~aret"Agrce01cm~-Amendmcrlls\Agrmls-Amend 200),03-10-20 532 No D 51 Deed orTruslDOC 28 c c r"~- '- condition and Trustor waives any requirement of the posting of any bond In connection therewith. (m) General Creditors' Remedies. Beneficiary shaJl have such other rights and remedies as are available under any statute or at law or in equity, generaJly, and the delineation of certain remedies in this Deed of Trust shall not be deemed in limitation thereof 30. Application of Sale Proceeds. After deducting aJl costs and expenses of Trustee and of this Deed of Trust, including cost of evidence of title and reasonable attorneys' fees in connection with sale, as above set forth, Trustee shall apply the proceeds of sale to payment of all sums expended under the terms hereof, not then repaid, with accrued interest at the rate of 10% per annum; all other sums then secured hereby; and the remainder, if any, to the Beneficiary and any other person or persons legaJly entitled thereto. 31. Remedies Cumulative. No remedy herein conferred upon or reserved to Trustee or Beneficiary is intended to be exclusive of any other remedy provided herein or under the Disposition and Development Agreement or any other Transaction Documents, or otherwise by law provided or permitted, or provided in any guaranty given in connection with the Loan, but each shall be cumulative and shall be in addition to every other remedy. Every power or remedy given by this instrument to Trustee or Beneficiary or to which either of them may be otherwise entitled, may be exercised concurrently or independently, from time to time and as often as may be deemed expedient by Trustee or Beneficiary and either of them may pursue inconsistent remedies. 32. No Waiver. No waiver of any default or failure or delay to exercise any right or remedy by Beneficiary shall operate as a waiver of any other default or of the same default in the future or a preclusion of any right or remedy with respect to the same or any other occurrence. 33. Marshaling. In case of a sale under this Deed of Trust, the Property, real, personal and mixed, may be sold in one or more parcels. Neither Trustee nor Beneficiary shall be required to marshal Trustor's assets. 34. SUBMISSION TO JURISDICTION. (A) TRUSTOR, TO THE FULLEST EXTENT PERMITTED BY LAW, HEREBY K."IOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, (A) SUBMITS TO PERSONAL JURISDICTION IN THE STATE OF CALIFORNIA OVER ANY SUIT, ACTION OR PROCEEDING BY ANY PERSON ARISING FROM OR RELATING TO THIS DEED OF TRUST, (B) AGREES THAT ANY SUCH ACTION, SUIT OR PROCEEDING MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN SAN BERNARDINO COUNTY, CALIFORNIA, (C) SUBMITS TO THE JURISDICTION OF SUCH COURTS, AND, (D) TO THE FULLEST P\Clerical Service, Depl\Margare1\AgrecfTlCnts-AmcndmcnlslAgrmts.Amend 2003\03-10-20 532 No D 51 Deed ofTrust.DOC 29 ,,- "- c c EXTENT PERMITTED BY LAW, AGREES THAT IT WILL NOT BRING ANY ACTION, SUIT OR PROCEEDING IN ANY FORUM OTHER THAN SAN BEIUI/ARDINO COUNTY, CALIFORNIA (BUT NOTHING HEREIN SHALL AFFECT THE RIGHT OF BENEFICIARY TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM). TRUSTOR FURTHER CONSENTS AND AGREES TO SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER LEGAL PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY REGISTERED OR CERTIFIED U.S. MAIL, POSTAGE PREPAID, TO THE TRUSTOR AT THE ADDRESS FOR NOTICES DESCRIBED HEREIN, AND CONSENTS AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE IN EVERY RESPECT VALID AND EFFECTIVE SERVICE (BUT NOTHING HEREIN SHALL AFFECT THE VALIDITY OR EFFECTIVENESS OF PROCESS SERVED IN ANY OTHER MANNER PERMITTED BY LAW). (B) TRUSTOR, TO THE FULLEST EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS DEED OF TRUST OR ANY CONDUCT, ACT OR OMISSION OF BENEFICIARY OR TRUSTOR, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. 35. Trustor's Indemnification. Trustor agrees to indemnify and hold harmless Trustee and Beneficiary from and against any and all losses, liabilities, penalties, claims, charges, costs and expenses (including attorneys' fees and disbursements) (the "Losses") that may be imposed on, incurred or paid by or asserted against Trustee and/or Beneficiary by reason or on account of, or in connection with: (a) any default by Trustor hereunder or under the Note or other Transaction Documents; (b) Trustee's and/or Beneficiary's good faith and commercially reasonable exercise of any of their rights and remedies or the performance of any of their duties hereunder or under any other documents to which Trustor is a party; (c) the construction, reconstruction or alteration of the Property; (d) any negligence, willful misconduct or failure to act of Trustor, or any negligence, willful misconduct or failure to act of any lessee of the Property, or any of their respective agents, contractors, subcontractors, servants, employees, licensees or invitees; or (e) any accident, injury, death or damage to any person or property occurring in, on or about the Property or any street, drive, sidewalk, curb or passageway adjacent thereto, except for the willful misconduct or gross negligence of the indemnified person; or (f) any failure of Trustor to file any tax reports or returns referred to in this Deed of Trust. The indemnity provided under subsection (f) of this paragraph shall also extend to counsel for the Beneficiary. Any amount payable to Trustee, Beneficiary or counsel for Beneficiary under this paragraph shall be due and payable within ten (10) days after demand therefor and receipt by Trustor of a statement from Trustee, Beneficiary and/or counsel for Beneficiary setting forth in reasonable detail the amount claimed and the basis therefor, and such amounts shall bear interest at the rate of 10% per annum from and after the date such amounts are paid by Beneficiary, Trustee or counsel for Beneficiary, until paid in full by Trustor. Trustor's obligations under this P:\Clcrical Sel'\'i~es Depl~\largarel',^grecmerlls.Amendmcnls"Agmus.Amend 2003\03.]0-20 532 No 0 St Deed ofTrustDOC 30 c c ".-" '- paragraph shall not be affected by the absence or unavailability of insurance covering the same or by the failure or refusal by any insurance carrier to perform any obligation on its part under any such policy of insurance. If any claim, action or proceeding is made or brought against Trustor and/or Beneficiary that is subject to the indemnity set forth in this paragraph, Trustor shall resist or defend against the same, if necessary, in the name of Trustee and/or Beneficiary, with attorneys for Trustor's insurance carrier (if the same is covered by insurance) or otherwise by attorneys approved by Beneficiary. Notwithstanding the foregoing, Trustee and Beneficiary, in their reasonable discretion, may engage their own attorneys to resist or defend, or assist therein, and Trustor shall pay, or, on demand, shall reimburse Trustee and Beneficiary for the payment of the reasonable fees and disbursements of said attorneys. The indemnity provided for herein shall survive Trustor's performance under the Disposition and Development Agreement and the Note secured by this Deed of Trust and foreclosure, whether by judicial foreclosure, power of sale pursuant to this Deed of Trust or by deed in lieu of foreclosure. 36. Attornevs' Fees; Costs. Trustor agrees to reimburse Beneficiary for all costs, expenses expert witness and consulting fees and reasonable attorneys' fees that Beneficiary incurs in connection with the realization or enforcement of any obligation or remedy contained in this Deed of Trust, the Note or any other Transaction Documents, with or without litigation, including without limitation any costs, expenses and fees incurred: (a) on appeal; (b) in any arbitration or mediation; (c) in any action contesting or seeking to restrain, enjoin, stay, or postpone the exercise of any remedy in which Beneficiary prevails; (d) in any bankruptcy, probate, receivership or other proceeding involving Trustor; and (e) in connection with all negotiations, documentation, and other actions relating to any work-out, compromise, settlement or satisfaction of the debt secured hereby or settlement of any covenants and obligations secured by this Deed of Trust or set forth in the Note, the Agency Quitclaim Deed or any other Transaction Documents. For the purposes hereof, the words "reasonable attorneys' fees" shall mean and include the salaries and fringe benefits of the City Attorney and lawyers employed by the City Attorney of the City of San Bernardino, computed on a hourly basis, who may provide legal services to the Beneficiary in connection with the exercise by the Beneficiary of any of its remedies hereunder. All such costs, expenses and fees shall be due and payable upon demand, shall bear interest from the date incurred through the date of collection at the rate of 10% per annum, and shall be secured by this Deed of Trust. 37. Acceotance bv Trustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record, as provided by law. 38. Successor Trustee. Trustee may resign by an instrument in writing addressed to Beneficiary, or Trustee may be removed at any time with or without cause by an instrument in writing executed by Beneficiary and duly recorded. In case of the death, resignation, removal or disqualification of Trustee or if for any reason Beneficiary shall deem it desirable to appoint a substitute or successor trustee to act instead of Trustee herein named or any substitute or successor trustee, then Beneficiary shall have the right and is hereby authorized and empowered to appoint a successor trustee, or a substitute trustee, without other formality than appointment P:IClcrical ServIces Depl\Margaret\Agreements-AmendrnenlsIAgmlls-Amend 2003\03-10_20 532 No D 51 Deed ofTnmDOC 31 c .r '-' c and designation in writing executed and acknowledged by Beneficiary and the recordation of such writing in the office where this Deed of Trust is recorded, and the authority hereby conferred shall extend to the appointment of other successor and substitute trustees successively. Such appointment and designation by Beneficiary shall be full evidence of the right and authority to make the same and of all facts therein recited. If such appointment is executed on behalf of Beneficiary by an officer of Beneficiary, such appointments shall be conclusively presumed to be executed with authority and shall be valid and sufficient without proof of any action by the Trustee or any officer of Beneficiary. Upon the making of such appointment and designation, all of the estate and title of Trustee in the Property shall vest in the named successor or substitute trustee and it shall thereupon succeed to and shall hold, possess and execute all the rights, powers, privileges, immunities and duties herein conferred upon Trustee; but, nevertheless, upon the written request of Beneficiary or of the successor substitute trustee, the Trustee shall execute and deliver an instrument transferring to such successor or substitute trustee all of the estate and title in the Property of the trustee so ceasing to act, together with all the rights, powers, privileges, immunities and duties herein conferred upon Trustee, and shall duly assign, transfer and deliver any of the properties and moneys held by the Trustee hereunder to said successor or substitute trustee. All references herein to Trustee shall be deemed to refer to any trustee (including any successor or substitute, appointed and designated, as herein provided) from time to time acting hereunder. Trustor hereby ratifies and confirms any and all acts that Trustee herein named or its successor or successors, substitute or substitutes, in this Deed of Trust, shall do lawfully by virtue hereof. 39. Reconvevance. Upon written request of Beneficiary, stating that all performances and sums secured hereby have been satisfied and paid, and upon surrender of the Note and this Deed of Trust to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then held hereunder. The recitals in any reconveyance executed under this Deed of Trust of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." 40. No Releases. The Property shall not be released from the lien of this Deed of Trust and no person shall be released from liability under the Loan or any other obligation secured hereby, except in the manner herein specified. Without affecting the liability of any other person for the payment and performance of any obligation herein mentioned (including Trustor should it convey said Property) and without affecting the lien or priority hereof upon any Property not released, Beneficiary may, without notice, release any person so liable, extend the maturity or modify the terms of any such obligation, grant other indulgences, make future or other advances to Trustor or anyone or more parties comprising Trustor, assign or in any manner transfer this Deed of Trust, release or reconvey or cause to be released or reconveyed at any time all or part of the said Property described herein, take or release any other security or make compositions or other arrangements with debtors. Beneficiary may also accept additional security, either concurrently herewith or thereafter, and sell same or otherwise realize thereon, either before, concurrently with, or after sale hereunder. P:{:!cncal Services Dcpl\Margarci\:\grcemenI5-Amcndmcnls\Agrmts-Amend 2003\03-10.20 532 No D St Deed ofTru,IOOC 32 .-. ~ c - '- 41. Beneficiarv's Consents. At any time, upon written request of Trustor, Trustor's payment of Beneficiary's fees and presentation of this Deed of Trust (in case of full reconveyance, for cancellation and retention), without affecting the liability of any person for the payment of the indebtedness, Beneficiary may: (a) consent to the making of any map or plat of said Property; (b) join in granting any easement or creating any restriction thereon, (c) join in any other agreement affecting this Deed of Trust or the lien or charge thereof, and (d) reconvey, without warranty, all or any part of the Property. 42. Further Assurances. Trustor, from time to time, within fifteen (15) days after request by Beneficiary, shall execute, acknowledge and deliver to Beneficiary, such chattel mortgages, security agreements or other similar security instruments, in form and substance reasonably satisfactory to Beneficiary, covering all property of any kind whatsoever owned by Trustor or in which Trustor has any interest which, in the reasonable opinion of Beneficiary, is essential to the operation of the Property covered by this Deed of Trust. Trustor shall further, from time to time, within fifteen (15) days after request by Beneficiary, execute, acknowledge and deliver any financing statement, renewal, affidavit, certificate, continuation statement or other document as Beneficiary may reasonably request in order to perfect, preserve, continue, extend or maintain the security interest under, and the priority of, this Deed of Trust and the priority of each such chattel mortgage or other security instrument. Trustor further agrees to pay to Beneficiary on demand all reasonable costs and expenses incurred by Beneficiary in connection with the preparation, execution, recording, filing and refiling of any such instrument or document, including the charges for examining title and the attorneys' fees for rendering an opinion as to priority of this Deed of Trust and of such chattel mortgage or other security instrument as a valid and subsisting lien. However, neither a request so made by Beneficiary, nor the failure of Beneficiary to make such request shall be construed as a release of such Property, or any part thereof, from the conveyance of title under this Deed of Trust, it being understood and agreed that this covenant and any such chattel mortgage, security agreement or other similar security instrument delivered to Beneficiary are cumulative and given as additional security. 43. Time of Performance. Time is of the essence hereof in connection with all obligations of the Trustor herein and under the Note. 44. Notices. The undersigned Trustor requests that a copy of any Notice of Default or Notice of Sale hereunder be mailed to it at its address as hereinbefore set forth. Any notices to be given to Trustor by Beneficiary or Trustee hereunder shall be sufficient, if personally delivered or mailed, postage prepaid, to the address of the Trustor stated hereinabove, or to such other address that Trustor has requested in writing to Beneficiary. Any time period provided in the giving of any notice hereunder shall commence upon the date such notice is delivered or deposited with the United States Postal Service for delivery by regular first-class postage pre- paid mail, as officially recorded on the certified mail receipt. P:\Clencal Ser\'ice~ Depl',Ma'llarel'Agrecmenls-Amendmenls'Agrmls-Amend 2003\03-10-20 SJ2 No D SI Deed ofTruSl.DOC 33 -- ~ 45. Beneficiary's Right to Inspect. Beneficiary and its agents and representatives may enter upon the Property at all reasonable times to attend to Beneficiary's interest and to inspect the Property. 46. Reports and Statements. Trustor shall deliver to Beneficiary, within ninety (90) days after the end of each of Trustor's fiscal years, and within twenty (20) days after Beneficiary's request, following an Event of Default, reasonably detailed operating statements and occupancy reports in a form satisfactory to Beneficiary covering the Property, both certified as correct by Trustor. At Beneficiary's option, after an Event of Default, such operating statements shall be prepared by an independent certified public accountant at Trustor's expense. If Beneficiary so requests, such statements shall specify, in addition to other information requested by Beneficiary, the rents and profits received from the Property, the disbursements made for such period, the names of the tenants of the Property and a summary of the terms of the respective leases or the rental arrangements. Trustor shall permit Beneficiary or its representative to examine all books and records pertaining to the Property, and shall deliver to Beneficiary all financial statements, credit reports, and other documents pertaining to the financial condition and obligations of Trustor and any tenants of the Property, and rental, income, and expense statements, audits, and tax returns relating to the Property. c 47. Assignment by Beneficiary: Participation. Beneficiary may assign this Deed of Trust in whole or in part to any person and may grant participations in any of its rights under this Deed of Trust, without notice and without affecting Trustor's liability under this Deed of Trust. In connection with any proposed assignment, participation or similar arrangement, Beneficiary may make available to any person all credit and financial data furnished or to be furnished to Beneficiary by Trustor. Trustor agrees to provide to the person designated by Beneficiary any information as such person may reasonably require to form a decision regarding the proposed assignment, participation or other arrangement. Trustor may not assign this Deed of Trust to any person at any time, except in connection with a transaction approved in writing by Beneficiary, under the terms of this Deed of Trust. 48. Modification. This Deed of Trust may be amended, modified, changed or varied only by a written agreement signed by all of the parties hereto. No requirement of this Deed of Trust may be waived, at any time, except in a writing signed by Beneficiary and any such waiver shall be effective only as to its terms and on a single occasion. Neither, Beneficiary's delay or omission in exercising any right, power or remedy under this Deed of Trust upon default of Trustor nor Beneficiary's failure to insist upon strict performance of any of the covenants or agreements contained in this Deed of Trust shall be construed as a waiver of any such right, power, remedy, covenant or agreement or as an acquiescence in Trustor's breach or default. 49. Successors. Subject to the prohibitions against Trustor's assignments herein, this Deed of Trust shall inure to the benefit of and bind all of the parties, their successors, estates, heirs, personal representatives and assigns. .- \..... P:\CI~rjcal Services D<:pl\MargaretlAgreemenls-Amendmenls,^grmts-Amend 2003\03.]0-20 532 No D 51 Deed ofTruSI,DOC 34 ,- "- ,- '- c 50. Partial Invaliditv. If a court of competent jurisdiction finally determines that any provision of this Deed of Trust is invalid or unenforceable, the court's determination shall not affect the validity or enforceability of the remaining provisions of this Deed of Trust. In such event, this Deed of Trust shall be construed as if it did not contain the particular provision that was determined to be invalid or unenforceable. No such determination shall affect any provision of this Deed of Trust to the extent that it is otheIWise enforceable under the laws of any other applicable jurisdiction. 5 I. Mutual Negotiation. Beneficiary and Trustor confirm that they have mutually negotiated this Deed of Trust and that none of the terms or provisions of this Deed of Trust shall be construed against either party. 52. Paragraph Headings. The paragraph headings in this Deed of Trust are for convenience only and in no way define, limit, extend, or describe the scope or intent of this Deed of Trust or any of its provisions. 53. Applicable Law. This Deed of Trust and the rights of the parties hereunder shall be governed by, construed and enforced in accordance with the laws ofthe State of California. 54. Entire Agreement. This Deed of Trust, the Disposition and Development Agreement, the Note and the other Transaction Documents, including any exhibits or addenda, contains the entire agreement of the parties with respect to the subject matter hereof 55. Counterparts. This Deed of Trust may be executed in two or more counterparts, all of which together shall constitute one and the same instrument and lien. The signature pages of exact copies of this Deed of Trust may be attached to one copy to form one complete document. Additional copies of this Deed of Trust may be executed in counterparts and recorded in two or more counties, all of which shall constitute one and the same instrument and lien. 56. Fixture Filing and Recording. This Deed of Trust constitutes a financing statement filed as a fixture filing under California Commercial Code Section 9502( c), as amended or recodified from time to time. This Deed of Trust is to be recorded in the real estate records of San Bernardino County, California, and covers goods that are, or are to become, fixtures. 57. Survival of Representations and Warranties. All of Trustor's representations and warranties contained in this Deed of Trust shall be true and correct at all times during the term of the Loan secured hereby, until full repayment of the Loan and release and reconveyance of this Deed of Trust. (signature page to follow) PIClcrical ServIces Dcpl\Marjl:3rcL"Agrccmcnl,-Amcndmenls\Agrmts-Amcnd 2003\03-10.20 532 No D 51 Deed ofTrusl DOC 35 r "-- IN WITNESS WHEREOF, Trustor hereby duly executes this Deed of Trust as of the day and year first above written. TRUSTOR [NOTARY JURAT ATTACHED] r '- c P:\Clerical Services nepl',Margarel\Agreemcnls.Amcndmenls'.Agmlls_Amcnd 2003\0).]0-20 532 No D 51 Deed ofTrustDOC 36 r" "- c c EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY PARCEL I: APN: 0134-081-10 All that portion of Lot I, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, records of said County, described as follows: Commencing 50 Feet South of the Northeast corner of said Loti; thence South along the East line of said Lot Ito the Southeast corner thereof; thence West along the South line of said Loti; 140 Feet to a point 159 Feet East of the Southwest Corner of said Loti; Thence North and parallel with the East line of said LotIto a point which is 50 Feet South of the North line of said Loti, thence East and parallel with the North line of Lot I, 140 Feet to the point of beginning" PARCEL 2: APN: 0134-081-23 All that portion of Lot 1, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, Page I, records of said County, described as follows: Beginning at the Southwest corner of the East 33"5 feet of the West 83"5 feet of said Lot I; thence East 109 feet along the South line of said lotto a point which is 159 feet East of the Southwest corner of said lot; thence North 150 feet to the North line of said lot; thence West 109 feet to the Northwest corner of said East 33"5 feet; thence South to the point of beginning" Except any portion thereof lying within the following described land: Beginning at the Northeast corner of said Lot I; thence South 50 feet along "0" Street; thence West 140 feet; thence North to the North line of said lot; thence east to the point of beginning" PARCEL 3: APN: 0134-081-22 A That portion of Lot 1, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7 of maps, Page I, records of said County, described as follows: Commencing at the Northeast corner of said Lot I; thence South on the West line of"O" Street, 50 feet; thence West 140 feet; thence North 50 feet to the North line of said Loti; thence East 140 feet to the point of beginning" B" That portion of Lot 8, Block 36, City of San Bernardino, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 7, of maps, Page I, records of said County, described as follows: Commencing at the intersection of the South line of Church Street and the West line of"O" Street; thence South 61 feet, more or less, along the West line of"O" Street to the Northeast corner of Lot I, in said Block 36; thence West 150 feet; Thpence North 61 feet, more or less, parallel to the West line of"O" Street to the South line of Church Street; Thence East along the South line of Church Street, to the point of beginning" P:\Clerical Ser\"icc~ DCpl\Margan:I\Agr~mcnI5-Amcndmcnl5\Agrm[s.Amcnd 2003\03.10-20 S32 No D 5t Deed orTrustDOC 37 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): 10 -- ZO~ Vote: Ayes \-'~IS-'l Nays Change to motion to amend original documents: - Item# ~\f\ B Abstain Resolution # l' DC- } UlG.3- 33 Absent t.j e Reso. # On Attachments: ~ Contract term: Note on Resolution of Attachment stored separately: --=- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date Sent to Mayor: 10' 'Z-\-Q'2, Date of Mayor's Signature: Ii)- Z.~-6:>, Date of Clerk/CDC Signature: IC)- ?3> ()3, Dat~~~~r Signature: 60 Day Reminder Letter Sent on 3Uth day: 90 Day Reminder Letter Sent on 45th day: See Attached: See Attached: See Attached: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Copies Distributed to: City Attorney Parks & Rec. Code Compliance Dev. Services Police Public Services Water Notes: NullNoid After: By: - Reso. Log Updated: / Seal Impressed: .-/' Date Returned: - Yes /' No By Yes NoL- By Yes No ,/ By Yes No / By Yes NOZ B EDA /' MIS Finance Others: BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE IContract Term, etc.) Ready to File: _ Date: Revised 01/12/01 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM Meeting Date (Date Adopted): 10 . 'ZC:>-<:B Item # 1-'2-\ 2, Resolution # Vote: Ayes \-3 5-'} Nays -8- Abstain .ta- . Change to motion to amend original documents: 2D0'3-220 Absent 4 Reso. # On Attachments: - Contract term: - Note on Resolution of Attachment stored separately: -=- Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date Sent to Mayor: 10-2.\-03 Date of Mayor's Signature: )0-22-0'<, Date ofClerk/CDC Signature:\O-7':<:-(Y3 Date Me a/Letter Sent for Signature: 60 Day Reminder Letter en 90 Day Reminder Letter Sent on 45th day: See Attached: See Attached: ached: Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): Copies Distributed to: City Attorney /' Parks & Rec. Code Compliance Dev. Services Police Public Services Water Notes: NulVVoid After: - By: ~ Reso. Log Updated: v"" Seal Impressed: v/" Date Returned: ~. Yes / No By Yes No --,..L- By Yes No -...L By Yes No~ By Yes N01 By EDA v Finance MIS Others: BEFORE FILING, REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.) Ready to File:_ Date: Revised 01/12/01