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HomeMy WebLinkAbout2009 CON CDC Jack & Melba Inc / Sizzler Restaurant - Economic Development LoanECONOMIC DEVELOPMENT LOAN AGREEMENT THIS ECONOMIC DEVELOPMENT LOAN AGREEMENT [AGREEMENT], is made between The Community Development Commission (CDC) [OWNER] of the City Of National City, a Redevelopment Agency, and Jack & Melba, Inc. dba Sizzler Restaurant #45, [BUSINESS OWNER], located at 1325 E. Plaza Blvd., National City, CA, 91950, on June 5, 2009, to participate in the Economic Development Loan Program. RECITALS 1. The CDC desires to stimulate private investment in the City's Commercial Districts. 2. The CDC believes that investment on improvements visible to customers, neighboring merchants, and residents will beautify the commercial corridors and increase the volume of business by making the districts and individual businesses more attractive and profitable. 3. The CDC has adopted and established an Economic Development Loan Program [EDLP] to assist business owners to improve their businesses located in the Redevelopment Project Area of the City of National City. The EDLP provides financial incentives to enhance the economic viability of businesses, promote commercial business opportunities, encourage investments by property owners and commercial tenants, and grow the business's taxable sales resulting in economic stimulus to the City of National City. 4. BUSINESS OWNER seeks to participate in the EDLP to implement tenant improvements and hire additional employees to grow business operations. 5. The CDC has determined that the business subject to this AGREEMENT is located in the Redevelopment Project Area, has completed the SDSU Technical Assistance Program and is eligible to participate in the Program. 6. The CDC has entered into an agreement with the National City Chamber of Commerce to administer the EDLP. The National City Chamber of Commerce, as an agent of the CDC, will administer and manage the program on behalf of the CDC. The National City Chamber of Commerce will act as the designated representative in this Agreement 7. As a condition of receiving the funds, BUSINESS OWNER(s) shall execute, among other things, this AGREEMENT, a promissory note, and a Deed of Trust, which Deed of Trust shall be recorded against the Business Property. These instruments are intended to secure CDC'S continuing interest in the condition of the Business, as well as the secure performance of other covenants contained in these AGREEMENTs. NOW, THEREFORE, in consideration of the recitals and the mutual obligations of the parties as herein expressed, the CDC and the BUSINESS OWNER(s) agree as follows: Page 1 of 9 AGREEMENT I. DEFINITIONS The following terms shall have the following meanings whenever used in this AGREEMENT, except where the context clearly indicates otherwise. Any ambiguity as to the intended meaning or scope of the terms set forth below will be resolved solely by the CDC through its designated representative. Completion Date is defined as the date that the contractor has finished the business improvements per the AGREEMENT and Scope of Work and to the satisfaction of the CDC, as evidenced by final inspection and sign off. the CDC or its agent administering this program. Parcel is defined as the unit of real property as identified within the County Recorder's documents. Program Manager is defined as the designated representative for the CDC's Economic Development Loan Program. Project, also known as Economic Development Loan Project, is defined as the total business improvements made to the business/ property outlined in the Scope of Work, attached as Exhibit "A", and approved by the Program Manager. Total Cost Expenditure is defined as the total actual costs incurred by and paid for completing the project. Contractor is defined as a contractor selected through the bidding process to complete the business improvements per this AGREEMENT. Participant is defined as the Property and/or BUSINESS OWNER of the property to which the business improvements are made. BUSINESS OWNER(s) is defined as the person(s) on Title on the business's articles of organization. Owner is defined as the Community Development Commission (CDC). CDC is defined as the Community Development Commission of National Cityand its authorized representatives, officers, officials, directors, employees and agents. AGREEMENT is defined as this AGREEMENT entered into between the CDC and BUSINESS OWNER(s). Note (the NOTE) is defined as the certain promissory note in the total principal amount of Fifteen Thousand Dollars ($15,000) to be executed by Business Owner(s) in favor of the CDC, evidencing all or any part of the funds, which is secured by the Deed of Trust, as well as any amendments thereto, modifications thereof or restatements thereof. The terms of the NOTE are hereby incorporated into this AGREEMENT by this reference. Page 2 of 9 Business Property is defined as the pledged collateral by the BUSINESS OWNER(s) to the CDC as security for debt repayment. Deed of Trust is the deed of trust, assignment of rents, and Deed of Trust placed on the Business Property as security for the assistance by Business Owner(s) as trustor with the CDC as beneficiary, as well as any amendments to, modifications of, and restatements of said deed of trust. The terms of the Deed of Trust are hereby incorporated into this AGREEMENT by this reference. II. PROPERTY/ BUSINESS OWNER(S) RESPONSIBILITIES 1. The Property Owner shall sign the EDL Program Application and submit to the Program Manager by June 5, 2009. 2. The BUSINESS OWNER(s) shall meet with the Program Manager to discuss the business improvement work to be completed, per this AGREEMENT by June 5, 2009. 3. The BUSINESS OWNER(s) shall sign this AGREEMENT and agrees to the Scope of Work attached as Exhibit "A" and by this reference made part of this AGREEMENT. The Scope of Work outlines the Economic Development Loan Project and itemizes approved costs based on the lowest bids, attached as Exhibit «B.", 4. The BUSINESS OWNER(s) shall be responsible for hiring the contractor from the bid process to complete the improvement work. 5. BUSINESS OWNER(s) agrees to maintain the business improvements made pursuant to this AGREEMENT in good condition, and to repair or replace any damage that occurs to the improvements, for a period of five (5) years following the completion date of the improvements. 6. BUSINESS OWNER(s) shall maintain an inviting, clean, and attractive business environment, satisfactory to and in the sole determination of the CDC. 7. BUSINESS OWNER(s) shall report annual statistics on property/ business investment, sales tax, and job creation to the CDC of National City. See attached Exhibit "C" for a report on 2006-2007 Data. 8. BUSINESS OWNER(s) shall, whenever possible, hire local contractors to perform business improvement work and hire local employees. 9. The BUSINESS OWNER(s) shall keep in full force and effect, during any and all work performed pursuant to this AGREEMENT, Comprehensive General Liability insurance in the amount not less than $1,000,000. BUSINESS OWNER(s) shall provide proof of insurance concurrent with execution of this AGREEMENT. Page 3 of 9 III. CDC'S RESPONSIBILITIES 1. The Program Manager shall meet with the BUSINESS OWNER(s) to discuss scope of work for the business improvements. 2. The CDC shall reimburse the BUSINESS OWNER for improvement work undertaken pursuant to this AGREEMENT, pursuant a reimbursement process. a. Loan funds will be distributed on a reimbursement basis for qualifying and eligible expenses per this AGREEMENT. BUSINESS OWNER(S) must submit all required reimbursement forms, supplemental and supportive materials to the satisfaction of the CDC. b. The Program Manager will review the receipts submitted, and other supporting documents and conduct a walk through of the BUSINESS to make sure that all work was completed in accordance with the Scope of Work in Exhibit "A" c. If all obligations under this AGREEMENT have been met to the satisfaction of the CDC, CDC willissue full reimbursement payment within forty-five days of final review and approval of the reimbursement request. IV. LOAN TO BUSINESS OWNER(S) 1. The CDC agrees to Loan the BUSINESS OWNER Fifteen Thousand dollars ($15,000) for the purpose of improving the business at 1325 E. Plaza Blvd., National City, CA, 91950, consistent with the terms of this AGREEMENT. The Loan is secured by a NOTE and Deed of Trust, and is subject to repayment to the CDC if the BUSINESS is sold, leased, conveyed, refinanced, vacated, transferred, assigned, alienated, or hypothecated within five (5) years from the Completion Date of the improvements. 2. The NOTE is incorporated herein by reference. 3. The Note shall be secured by a Deed of Trust, which is incorporated herein by reference, and recorded against the pledged BUSINESS PROPERTY. V. CONDITIONS OF LOAN / LIEN 1. BUSINESS OWNER(S) AND CDC agree that if the improvements detailed in the Scope of Work, attached as Exhibit "A", on the BUSINESS commonly known as Sizzler Restaurant located at 1325 E. Plaza Blvd., National City, CA, 91950, are maintained for at least five (5) years from the Completion Date of the improvements, the Loan will be forgiven and BUSINESS OWNER(S) shall not be required to repay the loan to the CDC. However, should the BUSINESS be sold, hypothecated, vacated, leased, transferred, assigned, or alienated on or before five (5) years from the Completion Date of the improvements, this Loan shall be Page 4 of 9 repayable in full by the BUSINESS OWNER(S) to CDC, upon demand, with interest at the option of the CDC. 2. Interest shall be calculated at 8.5 % per annum simple interest retroactive to the date of the Loan. Unless BUSINESS OWNER(S) has complied with the terms of the AGREEMENT, the Loan identified shall constitute a lien upon the Business in the amount of the loan plus interest computed. 3. BUSINESS OWNER(S) has pledged real property located at 1325 E. Plaza Blvd., National City, CA, 91950, APN No. 557-250-40-00 , as loan collateral, attached as Exhibit "C". VI. DEFAULT 1. A failure to use the funds received for work agreed upon in this AGREEMENT, or any violation of any of the terms of this AGREEMENT, shall constitute a breach of the AGREEMENT. CDC staff shall send a letter to the borrower in the case of default on the loan account or a breach of contract and shall require the deficiency, default, or breach be cured within 30 days. If the breach, default, or deficiency is not cured in this time frame, then the City Attomey's Office may, at its discretion, initiate formal legal proceedings. The borrower will be subject to all remedies available by law. VII. DELINQUENCY In the event ofdefault in Section VI or failure to fulfill the conditions of the loan stated in Section V, and BUSINESS OWNER fails to repay the loan within 30 days from demand, the loan provider shall commence collection of the delinquent account using CDC staff and/or City Attorney staff as deemed appropriate. VIII. RECORDATION OF AGREEMENT 1. The BUSINESS OWNER(S) and the CDC agree that this AGREEMENT shall be recorded in the Office of the County Recorder and shall constitute constructive notice to the public that upon sale, hypothecation, assignment, lease, transfer or alienation of the BUSINESS within five (5) years from the Completion Date of the Improvements, the Loan shall be repayable with interest. After five (5) years from the Completion Date of the improvements, the Loan shall have no further force and effect upon the BUSINESS OWNER(s) and the CDC shall execute and record a full reconveyance of the Loan any and all documents necessary to clear title to the BUSINESS OWNER(S) upon the request of the BUSINESS OWNER(S). IX. TIME OF PERFORMANCE The contractor/ BUSINESS OWNER(s) shall complete the business improvements within 6 MONTHS of the date of this AGREEMENT. The Page 5 of 9 contractor shall submit final bills and receipts to the Community Development Department no later than 15 days after the Completion Date. X. PROJECT FUNDING The CDC has determined that this Project qualifies for Redevelopment Funds. The CDC agrees, as detailed in this Agreement, to loan BUSINESS OWNER the Total Cost Expenditure not to exceed $15,000. XI. NO AGENCY CREATED Any Contractor, person, or otherwise hired by the BUSINESS OWNER(s) to complete business improvements are not agents of the CDC, nor is there any contractual relationship established between Contractor, person, or otherwise and the CDC. Any provisions of this AGREEMENT that may appear to give the CDC any right to direct the BUSINESS OWNER(s) concerning the details of the obligations under this AGREEMENT, or to exercise any control over such obligations, shall mean only that the BUSINESS OWNER(s) shall follow the direction of the CDC concerning the end results of the obligations, consistent with the scope of work. XII. OWNERSHIP OF DOCUMENTS Once the BUSINESS OWNER(s) has received the Final Payment for the business improvements, all documents, including but not limited to, designs, plans, bids, bills, and receipts, prepared or acquired by the BUSINESS OWNER(s) pursuant to this AGREEMENT (including any duplicate copies) shall be the property of the CDC. The CDC's ownership entitlement arises upon payment or any partial payment of the project. The CDC's ownership of these documents includes use of, reproduction or reuse of, and all incidental rights. XIII. HOLD HARMLESS The BUSINESS OWNER(s) agrees to defend, indemnify, protect, and hold the CDC and its agents, officers, and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property. This indemnification and hold harmless agreement includes claims made by the BUSINESS OWNER's employees, agents, or officers, or judgments arising directly or indirectly out of obligations or services under this AGREEMENT. Claims that arise from, are connected with, or are caused or claimed to be caused by the acts or omissions of the BUSINESS OWNER(s), and its agents, officers, or employees are covered. Also covered are the claims or liabilities arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the CDC, its agents, officers, or employees which may be in combination with the negligence of the BUSINESS OWNER(s), its employees, agents or officers, or any third party. The BUSINESS OWNER's duty to defend, indemnify, protect and hold harmless shall not include any claims or liabilities arising from the Page 6 of 9 established sole negligence or sole willful misconduct of the CDC, its agents, officers or employees. XIV. DUTY TO DEFEND The BUSINESS OWNER(s) further agree that the hold harmless agreement in Section XI, and the duty to defend the CDC, require the BUSINESS OWNER(s) to pay any costs the CDC incurs that are associated with enforcing the hold harmless provisions, and defending any claims arising from obligations or services under this AGREEMENT. If the CDC chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to obligations or services under this AGREEMENT, the BUSINESS OWNER(s) agrees to pay the reasonable value of attorneys' fees and all of the CDC's costs. XV. COMPLIANCE WITH APPLICABLE LAWS The BUSINESS OWNER(s) agrees to comply fully with all applicable Federal, State, and local laws, ordinances, codes, regulations, permits, and design guidelines. The CDC will not issue any payment to the BUSINESS OWNER(s) if the subject property is in violation of any law, ordinance, code, regulation, permit, or design guideline. The BUSINESS OWNER(s) assumes responsibility for any costs arising from repairs or alterations caused by any violation of any law, ordinance, code, regulation, permit, or design guideline. XVI. WAGE RATES Tax increment funds are used for the EDL Program. Whenever federal and/or local funds are used, either in whole or in part, federal Davis -Bacon and/or state prevailing wages must be paid for all onsite labor relating to the project. Any improvements made to the business or property in addition to the EDL project must be completed prior to starting, or al the completion of, the EDL project and is at the expense of the business/property owner. If the work is done simultaneously, then prevailing wage must be paid on the entire project, including interior renovations. For more information, log onto: www.wdol.gov (Davis Bacon website) and/or www.dir.ca.gov/DLSR/statistics research.html (California Department of Industrial Relations, Division of Labor and Statistics, information on prevailing wage). XVII. NON -ASSIGNMENT The BUSINESS OWNER shall not assign the obligations under this AGREEMENT, nor any monies due or to become due, without the CDC's prior written approval. Any assignment in violation of this paragraph is grounds for immediate termination of this AGREEMENT, at the sole discretion of the CDC. In no event shall any putative assignment create a contractual relationship between the CDC and any putative assignee. Page 7 of 9 XVIII. NO WAIVER Any failure by the CDC to insist upon the strict performance by the other of any covenant, term, or condition of this AGREEMENT, or any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this AGREEMENT, shall not constitute a waiver of any breach or of such covenant, term or condition. No waiver of any breach shall affect or alter this AGREEMENT, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. XIX. ORAL REPRESENTATIONS This AGREEMENT and the exhibits and references incorporated into this AGREEMENT fully express all understandings of the parties concerning the matters covered in this AGREEMENT. No change, alteration, or modification of the terms of this AGREEMENT, and no verbal understanding of the parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both parties or an amendment to this AGREEMENT agreed to by both Parties in writing. All prior negotiations and AGREEMENTs are merged into this AGREEMENT. XX. CHANGES OR AMENDMENTS TO AGREEMENT All amendments to this AGREEMENT shall be in writing signed by the BUSINESS OWNER(s), Property Owner and the CDC. This AGREEMENT is executed by The Community Development Commission (CDC) of the City of National City acting by and through its Commissioners, and by the BUSINESS OWNER(s). Dated this I% day of A o, 2009. Dated this day of COMMUNITY DEVELOPMENT COMAgia B Bra ve Director , 2009. JACK & MELBA, INC. dba SIZZLER RESTAURANT #4 By, By Glenn Bachelor, President Glenn Bachelor, Secretary Page 8 of 9 I APPROVE the form and legality of this AGREEMENT this day of , 2009. GEORGE EISER, City Attorney By Assistant City Attorney EXHIBITS: A — Scope of Work B — Project Bids C —Report to CDC State of California County of San Diego AP ROVED A TPi�;M: P Senior As 6tsnt C Attorney ,�1 Oi> n, am before mej4 In�11l0l l 103 Q the undersigned, a Notary Public VUbl1C in and for the County of San Diego, State of California , perso lly appeared Brad Raulston who proved to me on the basis of satisfactory evidence to be the person whose name a - subscribed to the within ECONOMIC DEVELOPMENT Loan AGREEMENT and acknowledged to me thaKKe'she they executed the same i - it authorized capacity, and that b)t /1.�./th it signature')on the instrument the person''K or the entity upon behalf of which the person°( acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. .ture of Notary Public MARTHA BOLANOS Commission a Californiae1 6M mego Coolly e.�s. Ereint Oet 6.201 Page 9 of 9 PROMISSORY NOTE SECURED BY DEED OF TRUST San Diego, California June 5, 2009 1. For value received, the undersigned, Jack & Melba, Inc. dba Sizzler Restaurant #45 ("Borrower"), promises to pay to the order of the Community Development Commission of the City of National City ("Lender" or "CDC"), in accordance with the provisions of this Promissory Note ("Note"), on or before the Loan Maturity Date (defined below), the initial sums of Fifteen Thousand Dollars and no/100 Dollars ($15,000) (the "Loan Amount"). 2. The "Effective Date" of this Note is June 5, 2009, the date of the initial advance of funds. 3. All capitalized terms used in this Note, unless otherwise defined, will have the respective meanings specified in the Economic Development Loan Agreement or the Deed of Trust entered into between the Borrower and Lender on June 5, 2009, which meanings are incorporated herein by this reference as though fully set forth. 4. If any provision of this Note conflicts with or is inconsistent with the provisions of the Economic Development Loan Agreement or the Deed of Trust (all collectively, the "Economic Development Loan Agreements"), the Economic Development Loan Agreements shall supersede. 5. The Loan Amount will bear interest at the rate of 8.5% per annum simple interest retroactive to the date of the Loan, which is the Effective Date of this Note. 6. The Loan Amount will be due on the Loan Maturity Date (as defined below). 7. "Loan Maturity Date" means the date on which the indebtedness evidenced by this Note is due pursuant to the terms of any of the Economic Development Loan Agreements, which includes, but is not limited to, immediate repayment if the Business is sold, leased, conveyed, refinanced, vacated, transferred, assigned, alienated, or hypothecated within five (5) years from the Completion Date of the improvements as defined by and at the option of the CDC. 8. All payments will be applied first to accrued interest then to the principal. 9. The Loan Amount is payable in lawful money of the United States of America, in same day funds at any place that Lender or the legal holders of this Note may, from time to time, in writing designate, and in the absence of that designation, then by cashiers check delivered to the attention of the Finance Department at CDC's office located at 1243 National City Boulevard, National City, California 91950. 10. The principal amount of the indebtedness evidenced by this Note may, at the option of the Borrower, be prepaid in whole or in part without penalty or premium. 11. Time is of the essence. A failure by Borrower to fully repay the Loan on or before the Loan Maturity Date will constitute an Event of Default under this Note and entitle 1 Promissory Note. Lender to exercise any and all of its contractual, legal or equitable remedies including but not limited to those set forth in the Economic Development Loan Agreements. 12. On the occurrence of an Event of Default under this Note, or on the occurrence of any Event of Default under any of the Economic Development Loan Agreements, or on the occurrence of any other event that, under the terms of any of the Economic Development Loan Agreements, gives rise to Lender's right to accelerate the repayment of the outstanding Loan Amount, then, at the sole option of Lender, the full outstanding amount of this Note, or any part thereof specifically designated by the Lender in writing, shall immediately become due and payable by Borrower to Lender, without any further presentment, demand, protest, or notice of any kind. Borrower agrees that this Note will be deemed to have been made under, and will be governed by, the laws of the state of California in all respects, including matters of construction, validity, and performance, and that none of its terms or provisions may be waived, altered, modified, or amended except as Lender may consent to in a writing duly signed by Lender or its authorized agents. 13. This Note is to become secured, among other security, by a Deed of Trust covering [give the common address location for the property and the APN number] APN No. 557-250-40-00 located in National City, California, and any improvements, fixtures, or personalty located thereon, together with: (i) all rights, privileges, tenements, hereditaments, rights -of -way, easements, and appurtenances of the land, the improvements, fixtures or personalty located on the land, and all rights, title, and interest of Borrower in any streets, ways, alleys, strips, or gores of land adjoining such property; and (ii) all of Borrower's right, title, and interest in and to said property, including any rights or entitlements affecting the land, the improvements, fixtures, or personalty, including, without limitation, the Deed of Trust, which is incorporated herein by this reference as though fully set forth herein, to be executed by the undersigned, as trustor, in favor of Stuart Title, as trustee, for the benefit of Lender, as beneficiary, in accordance with the terms of the Economic Development Loan Agreements. This Note is the Note referred to in the Economic Development Loan Agreements, as well as the Deed of Trust, and is entitled to the benefits of the Economic Development Loan Agreements, that contain among other things, provisions for acceleration of the maturity of this Note on the happening of certain stated events. 14. The Deed of Trust provides as follows: "Should the BUSINESS be sold, hypothecated, vacated, leased, transferred, assigned, or alienated on or before five (5) years from the Completion Date of the improvements, this Loan shall be repayable in full by the BUSINESS OWNER(S) to CDC, upon demand, with interest at the option of the CDC", (each, a "Transfer"), without first obtaining the written consent of the Beneficiary, then all obligations secured by the Deed of Trust may be declared due and payable, at the option of the Beneficiary, as stated in Section V of the Economic Development Loan Agreement (as defined in the Note). Consent to one transaction of this type will not constitute a waiver of the right to acquire consent to future or successive transactions. 2 Promissory Note. 15. Borrower agrees that, if Lender or holder of this Note incurs: (i) any costs, fees, or expenses, including costs of procuring evidence of title incurred in connection with sale; or (ii) any costs including, without limitation, attorney fees, incurred in enforcing payment, whether or not suit is filed, or protecting security, including, without limitation, all costs, attorney fees, and expenses incurred in connection with any bankruptcy, reorganization, arrangement, or other similar proceedings involving the undersigned or the Property, that in any way affects the exercise of rights and remedies under this Note or the Economic Development Loan Agreements, then Borrower will repay such expenses upon receipt of written demand from Lender, and, if such expenses are not immediately repaid, such outstanding amount will increase the currently outstanding indebtedness under this Note, and be secured by the Deed of Trust All costs and expenses incurred by Lender or holder of this Note to obtain relief from the stay of bankruptcy statutes are specifically included in the expenses referred to in this Paragraph. 16. Regardless of any of the provisions of this Note, nothing in this Paragraph will be deemed to limit or prejudice the rights of Lender to: (a) enforce the Deed of Trust or enforce any of its other rights or remedies under the Economic Development Loan Agreements; or (b) proceed against any entity or person, including Borrower with respect to the enforcement of any leases, bonds, policies of insurance, or other agreements; or (c) recover damages against Borrower for fraud, breach of warranty, failure to maintain insurance, waste, or material misrepresentation; or (d) recover any condemnation proceeds or insurance proceeds or other similar funds or payments attributable to the Property that, under the terms of the Economic Development Loan Agreements should have been paid to Lender; or (e) recover any tenant security deposits, prepaid rents, or other similar sums paid to or held by Borrower or any other entity or person in connection with the Business; or (f) recover the rents and profits of the Business accruing from and after the occurrence of an Event of Default that have not been applied to pay any portion of the outstanding indebtedness of this Note, operating, and maintenance expenses of the Business, insurance, premiums, impositions, deposits into a reserve for replacement, or other sums required by the Loan Document; or (g) recover damages including, without limitation, recovery of all amounts authorized under any environmental indemnity agreement between Lender and Borrower, relating to breach of any covenant, representation, or warranty of Borrower in the Economic Development Loan Agreements; or (h) recover from Borrower the entire outstanding indebtedness of this Note, if the exercise of any right or remedy under federal, state, or local forfeiture laws results in the loss of the lien of any Deed of Trust, or the priority of such, against the respective Business; or (i) recover funds to reimburse Lender for sums expended by Lender for the protection or preservation of the Property or Lender's interest in it (including, without limitation, payment of any real property taxes or assessments). Any liability of Borrower for any obligations arising in connection with the matters set forth in the above clauses, (a) through (i) inclusive, will be personal liability, and may be asserted against and recovered from its or their interest in the Business, as well as, against any of Borrower's other assets. Any liability of Borrower arising in connection with matters set forth in clause (g) will not be limited to the outstanding principal amount of this Note, and Borrower's obligations will survive foreclosure, deed in lieu of foreclosure, release, partial release, reconveyance, partial reconveyance, or any other transfer of the Property. 17. The Deed of Trust will be reconveyed upon Lender's satisfaction that all obligations secured by the Deed of Trust have been performed in full. 3 Promissory Note. In witness whereof, the undersigned has caused this Promissory Note to be executed as of the date and year first above written. Borrower: Jack & Melba, Inc. dba SIZZLER RESTAURANT #45: By State of California., .) ) County of Q(hi�, 11 -` O before me, MO klia)I " 'personally appeared who proved to me on the basis of satisfa tory evidence to be the erson whose name t are -subscribed to the within instrument and acknowled ed to me that he executed the same i hi /her/their authorized capacity, and that by i Iherfthcir signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Glenn Bachelor, President By Glenn Bachelor, Secretary I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Si: ature of Notary Public 4 Promissory Note. PLEASE COMPLETE THIS INFORMATION RECORDING REQUESTED BY: CITY CLERK OF NATIONAL CITY 1243 National City Blvd National City, CA 91950 AND WHEN RECORDED MAIL TO: CITY CLERK OF NATIONAL CITY 1243 National City Blvd National City, CA 91950 fil lI� Iv r Jcc'! DO # 009-0675564 I IIIIIIII III IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII DEC 07, 2009 10:39 AM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE DAVID L. BUTLER, COUNTY RECORDER FEES: 0.00 DA. 1 PAGES: 1] I IIIIII IIIII IIIII IIIII IIIII11III NIII 11 IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII THIS SPACE FOR RECORDER'S USE ONLY DEED OF TRUST: Sizzler Restaurant #45 (Please fill in document title(s) on this line) THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION NO CHARGE ON THIS DOCUMENT FOR THE BENEFIT OF A STATE AGENCY FORMED BY THE CITY OF NATIONAL CITY Recording Requested By: Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4301 And When Recorded Mail To: Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4301 DEED OF TRUST THIS DEED OF TRUST is made this 18th day of May, 2009, by JACK & MELBA, INC., whose address is 1325 E. Plaza Blvd., National City, CA 91950 ("Trustor"), to Stuart Title Company, a California corporation ("Trustee"); for the benefit of the Community Development Commission of the City of National City ("Beneficiary"), whose address is 1243 National City Boulevard, National City, California 91950-4301. TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, all that property, including, but not limited to, real property located at 1325 E. Plaza Blvd., National City, Ca, 91950, APN No. 557-250-40-00, in the City of National City, County of San Diego, State of California, described as: Parcel 2 of Parcel Map No. 5574, filed in the Office of the County Recorder of San Diego County, February 16, 1977, being a division of Parcel "A" of Parcel Map 3114, being a portion of the North one-half and the South one-half of 40 acre Lot 1 and 20 acre Lot 2, Quarter Section 132, Rancho de la Nacion, in the City of National City, County of San Diego, State of California, according to Map No. 166, made by Morrill, filed in the Office of the County Recorder of San Diego County, May 11, 1869. FOR THE PURPOSE OF SECURING: (1) Payment of the indebtedness evidenced by a promissory note of even date herewith executed by Trustor, in the principal sum of FIFTEEN THOUSAND NO/100 DOLLARS ($15,000.00), and any renewal, extension, or modification of the promissory note (the "Note); Deed of Trust Jack & Melba, Inc. (2) Any additional sums and interest that may hereafter be loaned to the then record owner of the Business by Beneficiary, when evidenced by another note or notes reciting that it or they are so secured; and (3) The performance of each agreement contained in this Deed of Trust. A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: Maintenance and Repair (1) To keep the Property/ Business in good condition and repair; not to remove or demolish any buildings on the Property; to complete or restore promptly and in good and workmanlike manner any building that may be constructed, damaged or destroyed on the Property/Business ; to pay when due all claims for labor performed and materials famished for the Property/Business ; to comply with all laws affecting the Property/Business or requiring any alterations or improvements to be made on the Property/Business ; not to commit or permit waste of the Property/Business ; not to commit, suffer or permit any act upon the Property/Business in violation of law; and to cultivate and maintain the landscaping, and do all other acts that from the character or use of the Property/Business may be reasonably necessary. Fire Insurance (2) To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary as its interest may appear. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured by this Deed of Trust, and in any order determined by Beneficiary, or at the option of Beneficiary, the entire amount so collected or any part of that amount may be released to Trustor, except that if the proceeds of the award for any taking or injury to the Property/ Business or the amount of such proceeds plus funds provided by Trustor is sufficient to allow for the repair and restoration of the Property/ Business, and such repair and/or restoration is physically and legally possible, then the Trustor shall use the proceeds of the award to timely effectuate such repair and/or restoration. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security, or apply or release them in the same manner and with the same effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance. This application or release shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice. Defense of Security (3) To appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary, or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 2 Deed of Trust Jack & Melba, Inc. Payment of Liens and Taxes (4) To pay, at least ten (10) days before delinquency, all taxes and assessments affecting the Business/Property, including assessments on appurtenant water stock, all encumbrances, charges, and liens, with interest, on the Property/ Business or any part of the Property/ Business, which appear to be prior or superior to this Deed of Trust; and all costs, fees, and expenses of this Trust. If Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required manner, and to the extent deemed necessary to Beneficiary or Trustee to protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to or demand upon Trustor, and shall not release Trustor from any obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related rights and powers: to enter upon the Property/ Business for the foregoing purposes; to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights and powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including attorneys' fees. Reimbursement of Costs (5) To pay immediately and without demand all sums expended by Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at the amount allowed by law in effect at the date of this Deed of Trust, and to pay any reasonable amount demanded by Beneficiary (up to the maximum allowed by law at the time of the demand) for any beneficiary statement requested by Trustor or any other beneficiary of a Deed of Trust encumbering the Property/Business regarding the obligation secured by this Deed of Trust. Obligations of Trustor (6) That Trustor will not permit or suffer the use of any of the Property/ Business for any purpose other than the use for which the same was intended at the time this Deed of Trust was executed. (7) That the Economic Development Loan Agreement, dated June 5, 2009 referred in the Note are incorporated herein by reference and made a part of this Deed of Trust, and that those terms defined in the Economic Development Loan Agreement have the same meaning in this Deed of Trust. (8) To perform, in a timely manner, each agreement and covenant by and between Trustor on any and all notes, loans, and deeds of trust that are senior and/or junior to this Deed of Trust. A default in any of these obligations, beyond any applicable cure period, shall constitute a default under the Deed of Trust. B. TRUSTOR AGREES THAT: Condemnation Award (1) Any award of damages in connection with any taking or condemnation, or for injury to the Property/ Business by reason of public use, or for damages for private trespass or injury to 3 Deed of Trust Jack & Melba, Inc. the Property/Business , is hereby assigned and shall be paid to Beneficiary, as its interest may appear as further security for all obligations secured by this Deed of Trust, except that if the proceeds of the award for any taking or injury to the Property/Business or the amount of such proceeds plus funds provided by Trustor is sufficient to allow for the repair and restoration of the Property/Business , and such repair and/or restoration is physically and legally possible, then the Trustor shall use the proceeds of the award to timely effectuate such repair and/or restoration. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security, or apply or release them in the same manner and with the same effect as provided in this Deed of Trust for the disposition of proceeds of fire or other insurance. Waiver of Late Payments (2) By accepting payment of any sum secured by this Deed of Trust after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure to pay any indebtedness secured by this Deed of Trust. Trustee's Powers (3) Upon written request of Beneficiary and presentation of this Deed of Trust, Trustee may (a) reconvey all or any part of the Property/Business ; (b) consent to the making and recording, or either, on any map or plat of all or any part of the Property/Business ; (c) join in granting any easement of the Property/Business ; or (d) join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the personal liability of any person for payment of the indebtedness secured by this Deed of Trust, or the lien of this Deed of Trust on the remaining Property/Business as security for the repayment of the full amount secured by this Deed of Trust. Full Reconveyance (4) Upon written request of Beneficiary stating that all obligations secured by this Deed of Trust have been performed in full, surrender of this Deed of Trust, any notes secured by this Deed of Trust to the Trustee for cancellation and retention, and payment of Trustee's fees and charges, Trustee shall reconvey, without warranty, the Property/Business then subject to this Deed of Trust. Absent manifest error, the recitals in the Reconveyance shall be conclusive proof of the truthfulness of the recitals. The grantee in the Reconveyance may be described as "the person or persons legally entitled thereto." Five years after issuance of the full reconveyance, Trustee may destroy the Note and this Deed of Trust, unless directed in the request to retain them. Assignment of Rents (5) As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power, and authority during the continuance of these Trusts, to collect the rents, issues, and profits of the Property/Business, but reserves the right, prior to any default by Trustor in payment of any indebtedness secured by this Deed of Trust or in the performance of any agreement under 4 Deed of Trust Jack & Melba, Inc. this Deed of Trust, to collect and retain these rents, issues, and profits as they become due and payable. Upon any such default for which cure has not been commenced within thirty (30) days and thereafter completed with diligence, Beneficiary may, without notice and without regard to the adequacy of the security for the indebtedness secured by this Deed of Trust, either personally or by agent or court -appointed receiver, do the following: enter upon and take possession of the Property/Business or any part of the Property/Business ; sue for or otherwise collect all rents, issues, and profits, including those past due and unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and collection (including reasonable attorneys' fees), upon any indebtedness secured by this Deed of Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by Beneficiary shall not cure or waive any default under this Deed of Trust or invalidate any act done pursuant to such a notice. Default in Foreclosure (6) Upon default by Trustor in the payment of any indebtedness secured by this Deed of Trust or in the performance of any obligation under this Deed of Trust for which cure has not been commenced within thirty (30) days, and thereafter completed with diligence, Beneficiary may declare all sums secured by this Deed of Trust immediately due and payable by delivering to Trustee a written declaration of default and demand for sale and a written notice of default and election to sell the Property/Business . Trustee shall cause the notice of default and election to sell to be recorded. Beneficiary also shall deposit with Trustee this Deed of Trust, a copy of the Agreement, and all other documents evidencing obligations secured by this Deed of Trust. After the required time period has lapsed following the recordation of the Notice of Default, and after notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell the Property/Business at the time and place specified in the notice of sale, either as a whole or in separate parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. Trustee may postpone sale of all or any portion of the Property/Business by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property/Business old, but without any covenant or warranty, express or implied. Absent manifest error, the recital in the deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any person, including Trustor, Trustee, or Beneficiary, may purchase at the sale. After deducting all costs, fees, and expenses of Trustee and Beneficiary under this paragraph, including costs of procuring evidence of title incurred in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms of this Deed of Trust, not then repaid, with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons legally entitled to the remaining proceeds. Further Encumbrances (7) Should Trustor's business, known as the Sizzler Restaurant #45, be sold, hypothecated, vacated, leased, transferred, assigned, or alienated on or before five (5) years from the 5 Deed of Trust Jack & Melba, Inc. Completion Date of the improvements, this Loan shall be repayable in full to CDC, upon demand, with interest at the option of the CDC, then all obligations secured by the Deed of Trust may be declared due and payable, at the option of the Beneficiary, as stated in Section V of the Economic Development Loan Agreement (as defined in the Note). Consent to one transaction of this type will not constitute a waiver of the right to acquire consent to future or successive transactions. Interest shall be calculated at 8.5 % per annum simple interest retroactive to the date of the Loan. Unless BUSINESS OWNER(S) has complied with the terms of the AGREEMENT, the Loan identified shall constitute a lien upon the Business in the amount of the loan plus interest computed. The Debtor will pay the note secured by this Deed of Trust and any renewal or extension of it and any other indebtedness secured by this Deed of Trust in accordance with the terms and provisions of this Deed of Trust. On full payment by the Debtor of all indebtedness secured by this agreement in accordance with this Deed of Trust, this Deed of Trust shall expire, and the Secured Party's security interest in the Collateral, as set forth in this Deed of Trust shall terminate. General Provisions (8) This Deed applies to, inures to the benefit of, and binds all parties to this Deed of Trust, and their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term "Beneficiary" shall mean the Community Development Commission of the City of National City, and the heirs, legatees, devisees, administrators, executors, and assigns of any such person. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. Acceptance by Trustee (9) Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party to this Deed of Trust of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. Substitution of Trustees (10) Beneficiary, or any successor in ownership of any indebtedness secured by this Deed of Trust, may from time to time, by written instrument, substitute a successor or successors to any Trustee named in or acting under this Deed of Trust. The substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary under this Deed of Trust, the book and pate where this Deed is recorded, and the name and address of the new Trustee. When executed by Beneficiary, and duly acknowledged and recorded in the office of the recorder of the county or counties where the Property/Business is situated, the substitution instrument shall be conclusive proof of proper substitution of the successor Trustee or Trustees. Any successor Trustee or Trustees shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers, and duties. 6 Deed of Trust Jack & Melba, Inc. Cumulate Powers and Remedies (11) The powers and remedies conferred in the Deed of Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of Trust or given by law. These powers and remedies may be exercised singly, successively, or together, and as often as deemed necessary. Conclusiveness of Recitals (12) The recitals contained in any reconveyance, trustee's deed, or any other instrument executed by the Trustee from time to time under the authority of this Deed of Trust or in exercise of its powers or the performance of its duties under this Deed of Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts, or in general statements or conclusions absent manifest error. Further, the recitals shall be binding and conclusive upon the Trustor, its heirs, executors, administrators, successors, and assigns, and all other persons. Attorneys' Fees (13) If any action is brought for the foreclosure of this Deed of Trust or for the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys' fees; and these sums shall be secured by this Deed of Trust. Co -trustees (14) If two or more persons are designated as Trustee in this Deed of Trust, any, or all, power granted in this Deed of Trust to Trustee may be exercised by any of those persons, if the other person or persons are unable, for any reason, to act. Any recital of this inability in any instrument executed by any of those persons shall be conclusive against Trustor and Trustor's heirs and assigns. Request for Notices of Default and Sale (15) In accordance with Section 2924b of the California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under that Deed of Trust executed by the Trustor concerning this Property/Business be mailed to: Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950-4301 NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded. The undersigned Trustor requests that a copy of any notice of default and of any notice of sale under this Deed of Trust be mailed to Trustor at the address of Trustor set forth above. 7 Deed of Trust Jack & Melba, Inc. Reasonable Inspection (17) Trustor shall permit Beneficiary and its agents or representatives, to inspect the Property/Business at any and all reasonable times, with at least 24 hours advance notice. Inspections shall be conducted so as not to interfere with the tenants' use and enjoyment of the Property/Business . Hazardous Materials (18) For purposes of this Deed of Trust, "Hazardous Materials" mean and include any hazardous, toxic or dangerous waste, substance or material including, without limitation, flammable explosives, radioactive materials, asbestos, hazardous wastes or toxic substances in (or for purposes of) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended (42 U.S.C. § 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et seq.), and those substances defined as hazardous wastes in § 25117 of the California Health and Safety Code or as hazardous substances in § 25316 of the California Health and Safety Code or in any regulations promulgated under either such law, any so-called "Superfund" or "Superlien" law, or any other federal, state, or local statute, law, ordinance, code, rule, regulation, order, or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect. (19) In addition to the general and specific representations, covenants, and warranties set forth in the Deed of Trust or otherwise, Trustor represents, covenants, and warrants, with respect to Hazardous Materials, as follows: (a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed of on, under or at the Property/Business or any part thereof, and neither the Property/Business nor any part thereof, or any Property/Business adjacent thereto, has ever been used (whether by the Trustor or, to the best knowledge of the Trustor, by an other person) as a manufacturing site, dump site, or storage site (whether permanent or temporary) for any Hazardous Materials; (b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees contractors, and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers, employees, contractors or agents for, with respect to, or as a direct or indirect result of, the presence or use, generation, storage, release, threatened release or disposal of Hazardous Materials on or under the Property/Business or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials from the Property/Business(including, without limitation, any losses, liabilities, damages, injuries, costs, expenses, or claims asserted or arising under CERCLA, any so-called "Superfund" or 8 Deed of Trust Jack & Melba, Inc. "Superlien" law, or any other federal, State or local statute law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials) regardless of whether or not caused by or within the control of Trustor. Notwithstanding the foregoing, Trustor's obligations under this section shall not apply to any losses, liabilities, damages, injuries, costs, expense, or claims which arise out of or relate to Hazardous Materials which are generated, released or stored on the Property/Business after the date that Beneficiary takes possession thereof. (c) Trustor has not received any notice of (i) the happening of any event involving the use, spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge") affecting Trustor or the Property/Business or (ii) any complaint, order, citation, or notice with regard to air emissions, water discharges, noise emissions, or any other environmental, health, or safety matter affecting Trustor, or the PropertyBusiness("Environmental Complaint") from any person or entity, including, without limitations, the United States Environmental Protection Agency ("EPA"). If Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7) days thereafter, oral and written notice of same to Beneficiary. (d) Without limitation of Beneficiary' s rights under this Deed of Trust, Beneficiary shall have the right, but not the obligation, to enter onto the Property/Business or to take such other actions as it deems necessary or advisable to clean up, remove, resolve, or minimize the impact of, or otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice from any person or entity, including without limitation, the EPA, asserting the existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the Property/Business , which if true, could result in an order, suit, or other action against Trustor affecting any part of the Property/Business by any governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its security under the Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed of Trust, and shall be payable by Trustor upon demand together with interest thereon at a rate equal to the highest rate payable under the note secured hereby. Continuing Obligations (e) The foregoing representation, covenants, indemnities, and warranties shall be continuing, and shall be true and correct for the period from the date hereof to the release of this Deed of Trust (whether by payment of the indebtedness secured hereby or foreclosure or action in lieu thereof), and these representations, covenants, indemnities, and warranties shall survive such release. Successor Owners (20) Each successor owner of an interest in the Property/Business other than through foreclosure or deed in lieu of foreclosure, shall take its interest subject to this Deed of Trust. 9 Deed of Trust Jack & Melba, Inc. Governing Law (21) This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. Dated: TRUSTOR/BORROWER: Jack & Melba, INC. dba SIZZLER RESTAURANT #45: By Glenn Bachelor, President By State of Cal' orni . ) County of ) OnatM 5, & XY1 before me,U0f1h91BAILkE 160,4 1,1b6rsonally appearedG tO,hy1 Ectk,Wor. who proved to me on the basis of satisfabtory evidence to be the erson's)whose name - subscribed to the within instrument and acknowled_ed to me that h • • = = executed the same in - - authorized capacity and that b signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Glenn Bachelor, Secretary I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS m hand and official seal. Si ature of Notary Public 10 itARTHAf)OLAN0S Comnufoft 01816495 Nasty PYMk - Calends 6M Moo CowfY Deed of Trust Jack & Melba, Inc. February 11. 2009 To Whom 1i May Concern: Sizzler Restaurant #45 1325 E Plaza Blvd. National Citv. Ca. 91950-3611 Tele. 4(619) 477-2590 Fax #(619) 477-4441 Please find enclosed the information requested concerning our loan request through the Community Development Commission of National City. 1) Prioritized Business Improvements a) Air Conditioner Replacement Needed to a maintain a minimum of comfort for our guests b) Carpet Replacement Needed to give the restaurant an updated and fresh appearance c) Updating of Hood Fire Protection System Needed to bring system up to current code requirements and to help insure the continued service to our guests with little to no interruption due to a fire 2) Find the bids for the above improvements enclosed 3) Find enclosed the SBDITC report 4) Recommendations implemented to date a) VIP Program Implemented the VIP card program as well as a "Club' card and a 'Be Our Guest" card with more programs to follow at a later date b) Facade Renovation Put a fresh coat of paint on the building (') Signage Started utilizing the outside reader board to promote specials more as well as white hoards and chalkboards in-store and implemented new menu boards Exhibit A If you require any further information, please feel free to contact me. Thank you for your time and consideration for this program. Isidoro G. "Jerry" Rodarte Store Manager Project Bids for Sizzler Restaurant # 45 Business Improvement Vendor Loan Amount Lowest Bid Air Conditioner Replacement Ultimate Air Systems $3,500 Up to $5,000 Carpet Replacement Sid's Carpet Barn -LOCAL $3,982.40 Up to $5,000 Update Hood Fire Protection System Aztec Fire and Safety $2,228.00 Up to $5,000 TOTAL $9,710.40 Up to $15,000.00 Exhibit B PAGE 01/01 February 10, 2009 Ultimate Air Systems Inc. Heating, Ventilating & Air Conditioning 4241 Jutland Drive, Suite 304, San Diego, CA 92117 Tel: 858-866-5622 Fax:858-274-5717 wwWUtttmateAtmosehere,com info(iUltimateAtiposehejre.com License 4: 859154 Attention: Jerry / Sizzler 1325 E. Plaza Blvd., National City, CA 91950 Tel: 619-477-2590 fax: 619-477-4441 RE: proposal to replace old 2 ton unit Hi Jerry It was a pleasure meeting you yesterday. Replace the gas/electric Rheem package unit with a new Rheem unit and adaptor curb including all electrical work and taking away the old unit will cost: Total price: $3500 NOTE: there is 1 week toad time to gat the curb. W you want us to install next week we need your approval right away. Option: the disconnect boxes (3 phase boxes) on the other 2 units are completely rusted and need to be replaced. Cost to replace both boxes is $400. Warranty: 1 year parts & labor plus equipment manufacturer warranty Payment terms: 100% upon completion, Any questions please call me on my cell 858-864-5702 Sincerely Yinon Barzilai P,E, President Name: Date: Approved (saga & fax back) Sed a C &Jut INCORPORATED 132 WEST 8th STREET, NATIONAL CITY, CALIFORNIA 91950 PHONE: (819) 477-7000 • FAX (819) 477-8128 J DATE 12 -/5. 3 NAME 44.00111111111111eNMAIL ADDRESS 2 �.`!7r 2„, /3W' L . STREET ADDRESS A%ic� f� G/9; 9/ 9s"o T ©p CITY_ a STATE ZIP ArN: C �lR/� / ,eo,�/!/���%p4' DELIVER TO / 3 2 �� �' P2.40/, STREET ADDRESS 6/9' CITY ZIP IME PHONE 7 77 G 7 9 v �^ eun� sry 7 7- 4AJIi ET BARN Senor Flooring Consultant LOWEST PRICE$...GUALUTY FLOORING YOU CAN AFFORD 132 WEST BTH STREET • NATIONAL CITY, CA e19S0 (81 el 477-7000 • FAX (e 1 B) 477-e12e susaso ?li,.'..i F,'...'S .r � '-,. e ., ... .s'.D'.: e+'n'd'e . - yy;*I` I:•, 4:- .(i:� , •:. s-,', P_ .. AMOUNT = / 728 5a t- , RUy..z. (��4--x/s77.r`/6-- & . JE ,941.- C. .17 2. ,3 ' �� /7�� 5 :0_,:� „EA/L' 6 ! %k70 rit 4 re /17Wl � 7 Lf7J / �)/�e / by roiL��rx%%/.`_ir, cA',PUa/3Fi T cAr� tv5i29a-&e/73itx mzea.. 2 T 2 zo_ .- 1-^f✓i f t/ C:)/-JP CvE(57!4C. / Y'% itA `ir4.01) > I _ 7_S-- / 05 ,..._ '/ 4/41,1-7,-a/'= 6gJ, G'ot/e sc /,r/� /r Cr - Zzs- cl -- 2-6q i-144tTc2 cP,7 ,V/D /4/sr�i1'2 2— 338. — 7"© i f}G 3982 :1 - A(/0 0/5P2 5 FINAL PRICE SUBJECT TO PHYSICAL NIEASURE"feriff' L' rue • SPECIAL ORDER SEE 48 BELOW !MY CREDIT CARD CAN BE USED TO PAY BALANCE DUE INITIALS INITIALS LR. 0 O.R. 0 HALL a ENTRY 0 DEN/FAM. RM. 0 STAIRS 0 KITCHEN ❑ BEDROOM 0 0 0 0 BATHROOM 0 0 0 CLOSETS ❑ OTHER CIAPPE 1 LAY[ PS OCT IIE SPOK(nNLE FUR MOVING rum ruInr on ANY CARPEFITERT WORK CARPET )111 D 30 DAYS ONLY, UNLESS APPROVED BY MANAGER. L_XT ILA L ADON CI IAHOL FOR STOPS, KITCHENS, BATHS AND MOVIFIG FURNNURE. NOT RLSI' 1N` TERMS AND CONDITIONS Customer agrees to purchase said merchandiee described above upon the terms and 8. condition specified below and on the reverse side of this Contract. 2. I ADREE TO PAY, ON OR BEFORE DELIVERY, THE BALANCE DUE. PAST DUE ACCOUNTS SUBJECT T01 X% PER MONTH FINANCE CHARGE, WHICH IS 18% ANNUAL PERCENTAGE RATE. 3. It Is agreed that the amount of materiels and labor required have been estimated from Customer's speclflcet ons and Information; any additional materials and/or labor required will be charged to Customer. Contractors ere required by law to be licensed by the Contractor's State license Board. Any questions concerning a Contractor may be referred to the Registrar of the Board whose address Is: CONTRACTOR'S STATE LICENSE BOARD, 1020 N STREET, SACRAMENTO. CAUFORNIA 95814 - LICENSE NO. 443230 C-15. S. NOTICE TO OWNER REGARDING MECHANICS LIEN LAW: The notice required by Section 7018.5 of the Business and Professions Code of California !s on the reverse aide. Customer's signature below Is his acknowledgement of receipt of Bald notice. 7. e. 9, 10. 11. 12. OF CONTRACT In the event Contractor employs an attorney to take any acts, steps, or proceedings In connection with tote Contract, Customer agrees to pay a reasonable sum as a collec- tion charge or attomey's fee, Including all costs and expenses. All furniture and breakable Items moved at Customer's own risk and responsibility. In the event this Contract requires Contractor to special order merchandise for the Customer and this merchandise has been ordered by Contractor, or any merchandise ordered by Customer Is cut or altered to Customer's specifications, such orders are non -cancellable. In the event this Contract IS for the purchase of other than special order merchandise and this Contract le canceled by Customer, Contractor shall charge Customer end Customer agrees to pay Contractor a cancellation charge equal to the amount of the deposit or 25% of the Contract Pr$ee, whlehever Is less. Claims for shortages or damaged goods must be made within five (5) days. Footprints and seams are not Invisible. No rotunda will be paid in cash, ADDITIONAL TERMS ON REVERSE SIDE 'USTOMER SALESMAN IIGNATURE SIGNATURE AERCHANDISE RECEIVED N GOOD CONDITION DATE hLt 441, PPrjlr473-11,M I1;i 0°4 (\IQ ill 17jg------:4464- x41,--f- CSL ?t 852201 6IZTI3C Fire & Safety 8109 Commercial Street La Mesa, CA 91942 (619) 464-5625 FAX: 1619) 464-4327 www.aztectireandsafety.com Sizzler #45 Attention; Steve 1325 E. Plaza Blvd National City, CA 91950-3611 Tel 619-477-2590 Fax 619-477-4441 Email Proposal Date: 02-03-09 Aztec Fire & Safety will perform the following fire protection service, at the above project location, in compliance with NFPA, State, and Local, fire codes and regulations. A) Supply labor and material to replace the (9) nozzles to protecting the duct and plenum. 13) Supply and install (3) new Ansul 3 gallon cylinders. C) Supply and install (1) new double tank cartridge and (I) single tank cartridge. System will include the following: A) Labor and materials to complete the installation of the new parts. B) Plans and test for the AHJ (permit fee to be paid directly to National City Fire Dept. by owner) System will exclude the following: A) Any electrical work required shutting down outlets under protected surface. B) Permits and fees for National City Fire Dept. C) Chrome sleeve and fittings. D) Gas valve (If existing ones cannot be reused.) PRICE: $2,2:28.00 Please call if you have any questions or if we may he of further service. l . Receipt of copy. Customer acknowledges receipt of copy, and that they undcrsutnd all of this agreement and terms set within. Limited warranty: Ali material and replacement components installed are warrarned to be ' specified in aecordanee with the manul'acwrer's specifications and shall include manufacturer's warranty. All work in the service And maintenance Of the system shall be cunlplefed in a workmanlike manner according to standard practices. Customer Shall assume all risk for loss or damage to his premises or its contents and oxuept us expressly sot limit herein eumpuny makes nu express or implied warranties us to uny matter wltatsuever, including, without limitation. the condition of the equipment its merchantability or its fitness for any particular use, Customer acknowledges that there arc no representations or warranties, express or implied, which extend beyond those on the face of the agreement hereof ACCEPTED BY: AFS AGENT: DATE: DATE: Business! Property Information 1. Year Built: 14( (-3 Square Footage 20c, 2. Is this an Historical Register Building: Yes Is this is a business of known local significance Yes 3. Describe proposed project and impact on taxable sales. el e Parcel Number 5S7- No ✓ (check one) No (check one) v� ru �C i u S7s�2-bvL .se(d ham; re of 1 +y 4. Proposed start date: ' l S 15'1 5. Number of Employees 3.2 6. Please indicate how many full-time once the project is completed? Yc�1"u.'vhi k C`C� �h~� � rC 41'0IA Proposed completion date: f 3k l ° Sales Tax Revenue Generated this Year $ 919 ,2.63 (FT) and part-time (PT) jobs will be Retained or Created Retained Created Officials & ManagersF(T :3 PT FT PT Professionals o lcs K T 4 PT 1 FT j PT Technicians -c, v..' k; �.; T 3 PT i FT PT Sales FT PT FT PT Office/Clerical FT PT FT PT Craft (Skilled) - 5,Je,1. t%ci FT S PT FT PT Operations (Semi -skilled) FT y PT FT 1 PT Laborers (Unskilled) FT PT FT PT Service Workers FT 1 PT a FT PT :)-- 7. Attended the CBL Workshop? S. Project Criteria J Yes Yes Yes Yes ✓ Yes ,/ Yes V Yes Yes Yes Yes v Yes JYes No (check one) BUSINESS: No Participated in the San Diego State University Small Business Technical Assistance Program? ✓ No Participated in Southwestern College's Small Business Development & International Trade Center Technical Assistance Program? No Has a current Business License issued by City of National City (show proof)? No Is located within National City's Redevelopment Area? (See attached map) No Creates Additional Jobs? If yes, how many? Part Time J— Full Time 2- No Located within a Community Benefit District (PBID) and is in good standing? No Applicant has prior business experience in ownership or management? No Has a business plan and marketing plan? No Applicant's business complies with all ADA s No Has been in operation for more than 5 years No Has been in operation for more than 10 year Exhibit C c c) Community Benefit Loan Application Applicant Name Si 2 ZJ 'k /E-5T-ALA.2I jT (hS / G leinv, QAche.l©r- Applicant Address ( 3)15 E. PLAL, uu ll CityA-T7oeJ Ct fy State Zip 7/4 E-mail Address s; z zlev Phone 4&AA-H-7 7-.a37v Fax 1.0r9-'E-7 -a- 4-/ Social Security #: Federal Tax ID i S- 9 o 17 `- Business Name S / z z L - S Business Address / 3.75 c— P/Ltzct. (,11 u City 44 kA-,..L I % State C1-1- Zip 919 S Type of Business h e S7" 1 LA A. .Y- T Date Established I %3 Type of Entity (Check One) ' Corporation E Partnership LLC ❑ Proprietorship Status of Applicant (Please check one): Business owner Property owner with tenant business Business Ownership and Management Name G t e itr‘ t 4ettialFi i Name Name Title Title Title % or Ownership or Ownership or Ownership If property owner of business, please attach a copy of the grant deed for the property. Project Request Loan Amount $ / vry Use of Funds Leasehold Improvements Machinery & Equipment Vehicles Working Capital Inventory/Supplies Other Project Location / 3 dS E PLA7 A-' A- r1 v.c: L ; 114 �i t cr j c� Sources of Funds Applicant's Equity Bank Financing Private Lender San Diego County CDC Loan Other Collateral Available (Attach a sheet if necessary) Describe real estate, vehicles, or business assets that may be pledged to support your request. GwZ1:3:2s E, PIaz_a.. +3lvci kic'dQ .y1�fJU ' t_ v r> Apr 21 09 01 50p management 6194774441 p 4 RECORDING REQUESTED BY, AND WHEN RECORDED, RETURN TO: Glenn C. Batchelor 2439 J Avenue National City, CA 91950 MAIL TAX STATEMENTS TO ABOVE A.P.N. 557-250-40-00 and 557-250-41-00 GRANT DEED The Documentary Transfer Taxis = 0-; TRANSFER TO REVOCABLE TRUST. For no consideration, GLENN C. BATCHELOR, a single man hereby GRANTS to GLENN C. BATCHELOR, TRUSTEE OF THE G. BATCHELOR TRUST DATED January 25, 2007 - The real property situated in the City of National City, •County of San Diego, State of California, commonly known as 1325 Plaza Blvd and adjacent parking lot, National City, CA 91950, and as APN# 557-250-40-00 and 557-250-47-00, and legally described in Exhibit A attached hereto and incorporated herein by reference. Dated: January 25, 2007 STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO GL iN C. BATCHELOR On January 25, 2007, before me, LORA PENDLETON, NOTARY PUBLIC, persunatiy appeared GLENN CHARLES BATCHELOR [ j personally known to me -OR - ] proved to me on the basis of satisfactory evidence to be the persor(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed same In his/herltheir authorized capacity, and that by his/her/their signature on the instrument the person(s), or the entity(les) upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. LJRA PEHDtErOM Comm # 1561975 t ROTARY PUL1c-GjI1:ORW.; 10 Cram Epres liar 1, 200" tIrDatal4YiNWORDICtienislCempieted2COT9atcherlor, GienroNationalCity.Cd.doc Apr 21 09 01 50p management Fri rex Janet a.'sUa le Fax,D;&:siness Owners Ina. 6194774441 p,3 PRUDUCER Su51neSB Owner's Las. Agency Monica G. Reinholtz, President P.O- Box 881588 San Diego CA 9216B-1588 llfUur:65B-B7a-6151 rar..634-874-3ee1 INSURED Sizzler steakhouse #45 f;t1aann 4strlh.1 LIT 1325 E. Plaaa B.vd- National City CA 91950 PATE I1,E1lDDfr�Yl'1 ACORP CERTIFICATE OF LIABILITY INSURANCE SIZiL 1 04/21/09 THIS CERTIFICATE IS ISSUED AS A lAAT TER OF INFORMATION OHLY AN0 CONFERS NO RIT3ia.TS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSUK CKS AFT UKUIN La L:UVtKALit Pz.INPRF'. &usx.re,ts A31l epee Tr.. Co.p.ny NC_'JR a. IFG<Ixac INSLPFP 0: rK,Y.P.ER E: COVERAGES TrE=CA'!CIES OF INSYIRaI I.: SLED BELLIPs IIWee PEEN 1>S'LIED TO TFIE IryIJRCC r02JED�:430 E TO'rTHEPO1I1 `C4fE1.rEDE FOR PEERIL):EI iYDpn JdJl'.tt. SH 4lY R`c0UIREN. EHT ?FRM. ote ^Jpra01160, CF ANY CO.'.ITRAf i OR 0THEP Cr=CtimE' Y RE?JAIN I}; INS R'AFI' E AFFO7£D UY TiIE PDI.I:I:S DESCRffD I-FRLIt' lS ELEJE Cl TO ALI 'HE TE M0. ExQlX+.Lr4a=E� v:d4DiT10LY 0!- )h .E F'OL Clri. AGGREGATE ! !NITS :L.1-10dVrl !...AY HAVE BEN REDLY=CC g•f =.hlp CLAM; ,s81,,,m____- - —_ —1-- PDLL_"NUFIBER LTR hSRD, TYPE OF INSBIUNCE AF1LERAI I IARII ITY A r}{ OC"I'nyX/ERCMll. GEhER,LLLIPHILIfY J C..NMSMw]F EC J OCCUR X Liquor Liability r---I _. CT- AGCRE Le.TF L IM11R=WPI.IFS PER �j I P+I}r7 1 rx RL'�.El I 1 f AlJT:-'M 1P! F 1 IARI, ITT ,,PrNtRR I .r. OWNEL10.UT05 JUL HIIED r.c^r-CWWED'LT'OS MVP90002134003 MVP90002134003 DATE INtNpD 1 DATE .I JBOXY J 01/02/09 01/02/LO 01/02/09 01/02/10 NAIt: sF LBAffS FACH',ICCI RRF*-1 ti+wu�c IoVO W:, FREtd:S� 5 CEaectaence 1 t: ED EXP 1Atry !ne person 1L$ 1, 0,00 . 000 s 100,000 $5,000 PE SO -AI. E A."-W I`UIJRV $1,000,000 -EtJI:FA. AGGRE.",i,TE $2,000,000 PI RVLAIC;T` - CLN: 10P AGG $1,000,0010 GARAGE L:. BILIT' ;,::+ AlITC 'aewnutSIN aL VII IEE rsAaoy-ii, 3001L',' t1111,-:Y ;Por paten) EGC.. ILY IH.'LIRY ('.=el acre d e) PROPERTY DAMAGE (Per acatle'ij 1 :.ITC C-14Y-EAA^. CI7m7 OTHER LION ?MG GW 'l EXCESS/JP& RELLA LIAEI_ITY C CUW U=D'.A;T'ELE ; FETETJTIiNJ CL.AlnL7tP•.h'7E WORKERS COM1PETISATON ANC F;MpI iTiFRF.' I IARIl ti•n r-o 7ET0IM'41TNiiia PrurriE OFF, CEremF:'PER EXCU:DEO? ye4. dasesit' u1 '. SPECIXL PSRC', IS O S OTHER A Building A contents I4v-290002134003 01/02/09 Rrti nlrli ad:d:ir rll J.TlMalai Nri.. J4, 1TNIri•r1/F,VIUVI',11•ar.r"A':'r1.Yii'A SrMPtfr!lr rf L:CLU.LACaCe 4L J.nSLLLancu 15 ia511QQ $e`7 moor Quits r MVP90002134003 01/02/09 01/02/10 01/02/10 *10 Days Notice of Cancellation for Non-PaymJent/30 Days All Others CERTIFICATE HOLDER CANCELLATION Proof of Insurance EA. ACC Ef.C..ti CC'.CU=1�nCC ACGRFGATE It— C.L. [Y:..n iii.L.,_NI LOP.Y I rJIITS $ Lt ER E.L. DK_ PaE-EA 9nPL C"Fc E.L. CIS AEL-PDLCC`•' rll? Rc/Spc1 RC/sval $733,482 $150,000 SHCL'-G ANY oF'HE ABOVE GE CR'BED POLICIES es CRt.CELLEG BEFORE TI-E EXPIRATION DA'E THEREOF, T.-.E SSI:?NG't SUR'. +st: EIBC EAYCK T' t1.A•L 30 DAYS vr=.''TEN tJ0T10E'O THE CERTIFICATE HCLDEfR NANED Ta 7HE LEFT, 5U-'AILURE TO Po So sIJALL IMPCSE NO OBL CATIOI, OR LIAIBLITY OF RVY KIVD UPON TIE- WSLRER, ITS AGETTS 7R rtemeselr.or.es. ACORD 25 (2001;08} UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME d PHONE OF CONTACT AT FILER [optional( Mike Dalla, City Clerk, City of National City, (619) 336-4226 B. SEND ACKNOWLEDGMENT TO: (Name and Address) I Mike Dalla Office of the City Clerk City of National City 1243 National City Blvd. Naitonal City, CA 91950 L 1 THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1. DEBTOR'S EXACT FULL LEGAL NAME-insertonlyQpp debmrname (la or1b)-donotabbrewteo combine names OR la. ORGANEATION'S NAME JACK & MELBA, INC. lb. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX lc. MAILING ADDRESS 1325 East Plaza Blvd. CITY National City STATE CA POSTAL CODE 91950 COUNTRY U.S. Id.$EE INSTRUCTION$ ADM INFO RE 11 e. TYPE OF ORGANIZATION DEe nON 1 Corporation !California 1f. JURISDICTION OF ORGANIZATION lg. ORGANIZATIONAL ID N,'rf any C0572822 [-JNONE REMOVED 2. ADDITIONAL DEBTORS EXACT FULL LEGAL NAME - insert only gpa debtor name (2a or 2b) - do not abbreviate or combine names OR 2e. ORGANIZATIONS NAME 26. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE POSTAL CODE COUNTRY 2d. SEE INSTRUCTIONS ADO'L INFO RE Ile. TYPE OF ORGANIZATION ORGANIZATION DEBTOR In 2f JURISDICTION OF ORGANIZATION 2g. ORGANIZATIONAL ID N, if any NONE 3. SECU R ED PARTYS NAME (or NAME of TOTAL ASSIGNEE of ASSIGNOR SIP) - insert onlyone secured parlyname (3a or3b; OR 3a. ORGANIZATIONS NAME Community Development Commission (CDC) of the City of National City 9b. INDIVIDUAL'S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 3c. MAILING ADDRESS 1243 National City Blvd. CITY National City STATE CA POSTAL CODE 91950 COUNTRY U.S. . This FINANCING STATEMENT covers the following collateral: Real property located at 1325 E. Plaza Blvd., National City, Ca, 91950, APN No. 557-250-40-00. Parcel 2 of Parcel Map No. 5574, filed in the Office of the County Recorder of San Diego County, February 16, 1977, being a division of Parcel "A" of Parcel Map 3114, being a portion of the North one-half and the South one-half of 40 acre Lot 1 and 20 acre Lot 2, Quarter Section 132, Rancho de la Nacion, in the City of National City, County of San Diego, State of California, according to Map No. 166, made by Morrill, filed in the Office of the County Recorder of San Diego County, May 11, 1869. 5. ALTERNATIVE DESIGNATION 21applicable]: LESSEE/LESSOR I ICONSIGNEE/CONSIGNOR BAILEE/BAILOR 1 I`SELLER/BUYER AG. LIEN �1NON-UCC FILING 6. I(This FINANCING S1 A IEMERr a to be h r record) (or recorded) inthe REAL 17, Check to REOJJEST SEARCH REPORT(S) on Debtor(s) ESTATE RECORDS Attach Addendum firaooliablel IADDTTIONAL FFF1 foetionall AM Debtors Lj Debtor 1 nDebtor 2 6, OPTIONAL FILER REFERENCE DATA $15,000 Economic Development Loan Program, CDC of National City, CA, DBA Sizzler Restaurant #45, Glenn Batchelor FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02) International Association of Commercial Administrator; (IACA)