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HomeMy WebLinkAbout2008 CON CDC Patricia Santos DBA El Juan Cafe - Community Benefit Loan AgreementCOMMUNITY BENEFIT LOAN AGREEMENT THIS COMMUNITY BENEFIT LOAN AGREEMENT [AGREEMENT], is made between The Community Development Commission (CDC) [OWNER] of the City Of National City, a Redevelopment Agency, and Patricia L. Santos doing business as El Juan Cafe [BUSINESS OWNER], located at 2316 Highland Ave., National City, CA, 91950, on June 30, 2008, to participate in the Community Benefit 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. 3. The CDC has adopted and established a Community Benefit Loan Program to assist property and BUSINESS OWNERs to improve their properties located in a designated area of the City of National City. 4. The designated area of the City of National City is the Redevelopment Project Area. 5. The CDC and the City of National City have determined that the project subject to this AGREEMENT, per Labor Code section 1771.5, is exempt from State prevailing wage requirements, so long as the alteration project is $15,000 or less, because the CDC has elected to initiate and enforce a labor compliance program. 6. 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. 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: 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. t 1. 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 by CDC staff. 2. Facade is defined as the exterior of a commercial building visible from the public street, and excludes all else, unless otherwise determined by the CDC. 3. Parcel is defined as the unit of real property as identified within the County Recorder's documents. 4. Program Manager is defined as the CDC's designated representative for the Community Benefit Loan Program. 5. Project is defined as the total business improvements made to the business/ property outlined in the Scope of Work, attached as Exhibit "B", and approved by the Program Manager. 6. Total Cost Expenditure is defined as the total actual costs incurred by and paid for completing the project. 7. Contractor is defined as a contractor selected through the bidding process to complete the business improvements per this AGREEMENT. 8. Participant is defined as the Property and/or BUSINESS OWNER of the property to which the business improvements are made. 9. Property Owner(s) is defined as the person(s) on Title at the San Diego County Recorders Office and identified on the Certificate of Ownership (Exhibit "A"). 10. BUSINESS OWNER(s) is defined as Patricia L. Santos doing business as El Juan Cafe. 11. Owner is defined as the Community Development Commission (CDC). 12. CDC is defined as the Community Development Commission of National City , a municipal corporation, and its authorized representatives, officers, officials, directors, employees and agents. 13. AGREEMENT is defined as this AGREEMENT entered into between the CDC and BUSINESS OWNER(s). 14. 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, attached as Exhibit "G". 2 15. Business Property is defined as the pledged collateral by the BUSINESS OWNER(s) to the CDC as security for debt repayment. 16. Deed of Trust is the 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 (Exhibit "H"). II. CERTIFICATION OF OWNERSHIP 1. The Property Owner(s) of the said property agrees to the improvements to the property pursuant to this AGREEMENT and has signed the Certificate of Ownership, attached as Exhibit "A" and incorporated by this reference. III. PROPERTY/ BUSINESS OWNER(S) RESPONSIBILITIES 1. The Property Owner shall sign the CBL Program Application and submit to the Program Manager by June 30, 2008. 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 30, 2008. 3. The BUSINESS OWNER(s) shall sign this AGREEMENT and agrees to the Scope of Work attached as Exhibit "B" and by this reference made part of this AGREEMENT. The Scope of Work outlines the Community Benefit Loan Project and itemizes approved costs based on the lowest bids, attached as Exhibit 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 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 "D" 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. 3 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 and is hereby attached as Exhibit IV. CDC'S RESPONSIBILITIES 1. The CDC 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. CDC Staff 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 "B" c. If all obligations under this AGREEMENT have been met, CDC shall issue full reimbursement payment within forty-five days of final review and approval of the reimbursement request. V. 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 2316 Highland Ave.` 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 attached hereto as Exhibit "G" and incorporated herein by reference. 3. The Note shall be secured by a Deed of Trust, which is attached as Exhibit "H" and incorporated herein by reference, and recorded against the pledged BUSINESS PROPERTY. VI. CONDITIONS OF LOAN / LIEN 1. BUSINESS OWNER(S) AND CDC agree that if the improvements detailed in the 4 Scope of Work, attached as Exhibit "B", on the BUSINESS commonly known as El Juan Cafe located at 2316 Highland Ave., 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 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 the business property located at 2316 Highland Ave., National City, CA, 91950, APN No. 560-382-09-00 and APN No. 560- 382-10-00, attached as Exhibit "F"'. VII. 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 Attorney's Office may, at its discretion, initiate formal legal proceedings. The borrower will be subject to all remedies available by law. VIII. DELINQUENCY 1. In the event of delinquencies, the loan provider shall commence collection of the delinquent account using CDC staff and/or City Attorney staff as deemed appropriate. IX. 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). 5 X. TIME OF PERFORMANCE The contractor/ BUSINESS OWNER(s) shall complete the business improvements within 4 MONTHS of the date of this AGREEMENT. The contractor shall submit final bills and receipts to the Economic Development Division no later than 15 days after the Completion Date. XI. PROJECT FUNDING The CDC has determined that this Project qualifies for Redevelopment Funds. The CDC agrees to pay the Total Cost Expenditure not to exceed $15,000. XII. 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. XIII. 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. XIV. 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, 6 protect and hold harmless shall not include any claims or liabilities arising from the established sole negligence or sole willful misconduct of the CDC, its agents, officers or employees. XV. 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. XVI. 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. XVII. WAGE RATES Tax increment funds are used for the CBL 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 CBL project must be completed prior to starting, or at the completion of the CBL 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). Alteration projects under $15,000 are excluded from the prevailing wage requirement under the City of National City's labor compliance program. Labor Code section 1771.5 allows the City of National City to exclude prevailing wage requirements for alteration projects of $15,000 or less. XVIII. 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 7 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. XIX. 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. XX. 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. XXI. 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 3Q day ofk,;WiLk., , 2008. COMMUNITY DEVELOPMENT COMM By Brad cutive Director 8 Dated this;5 day of-i, 2008. PATRICIA L. SANTOS doing business as EL JUAN CAFE: By /i, Phtricia L. Santos, Sole Proprietor APPROVED AS TO FORM: GEO,'' f E : R Imo+ Attorn By .4.1.v,iital �� Claudia citua Silva Senior As istant City Attorney EXHIBITS: A —Certificate of Ownership B - Scope of Work C — Project Bids D — Report to CDC E- Business Insurance F — Business Collateral G - Promissory Note H — Deed of Trust State of California ) County of.34,t1 ` On Sid I 96, coo before me, `toc. . Ahm, R(Pxi, personally appeared ra e►/A lv lUS who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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 nature of Notary Public 0 YOLANDA RAMOS; . ; .> COMM. # 1544861 +vs• NOTARY PUBLIC-CALIFORNIA F. SAN DIEGO COUNTY 0 ate COMM. EXP. JAN. 31, 20 9..t 9 COMMUNITY DEVELOPMENT COMMISSION of the CITY OF NATIONAL CITY COMMUNITY BENEFIT LOAN PROGRAM CERTIFICATION OF OWNERSHIP/ CONSENT TO IMPROVEMENTS I/We pAr(21 ci A 1__ c/NTOS ("Property Owner") hereby certify that (list all owners) pAT IZ. (C (i L - -, 7A/ iOS is/are the Owner(s) of record of certain commercial real property 2-3commonly known as 3 I F (C; H--L A dJ D A V C—J U - (address), National City, California, 91950. As Property Owner(s), we further certify that to the best of our knowledge, there are no current code enforcement actions pending against the real property described above. As Property Owner(s),we consent to the improvements to the business property located at 231 w 1-1 I (1-1LAJ O A IA; (Address), National City, CA, 91950. I/We declare under penalty of perjury pursuant to the laws of the State of California that the foregoing is true and correct. Executed this � T 2 5 v day of J [, i ry C , 2008, in National City, California. By 7f i b2 i Ci A L S Cf OE (Property Owner) -7) (Signature) ?A tC(%1r (- S Ai\JITS (Print Name) EXHIBIT "A" March 19, 2008 CI 2316 Highland Avenue National City, CA, 91950 Jacqueline Reynoso Community Development Coordinator 1243 National City Blvd. National City, CA 91950 Dear Ms. Reynoso: Thank you for approving my request for the Community Benefit Loan. I understand that I have to follow terms and conditions before your office approves my loan. I am submitting bids for which are enclosed: BATHROOM UPGRADE (DINING ROOM CEILING) • VILDEM HOME REMODELING (619)623-2247 NC $7,000 • DYNAMIC CONTRACTING SERVICES (619)474-0088 NC $4,500 Jun Casim did respond to my phone call and has not redone his bid which is over 3 months. • MADRIT BUILDERS INC. (619)470-3922 NC $0.00 He looked at a project to be done but has not submitted his proposal today.. PLACED ADVERTISEMENTS • UNION TRIBUNE 26 ads in 52 weeks $2,558.40 • STAR NEWS 12 ads in 12 months $2,124 • FILIPINO PRESS 24 in 12 months $2,300 Exhibit "B" 2316 Highland Avenue National City, CA, 91950 RESTAURANT MENUS • AZTEC PRINTING (619)477-3800 NC Menus & Flyers: • COPY POST PRINTING (619)425-1999 NC $0.00 Has picked up our menus and flyers but has not submitted his quote.. EMPLOYEE UNIFORMS $575 • UNIFORM WAREHOUSE 1(800)243-6805 Women— 24-71 @ $10.99 ea. $549.50 Men— 1-23 @ $11.99 ea. XXL $59.95 • KNG INTERNATIONAL 1(800)888-6368 Women— 36-71 @ $8.42 ea. $421 Men— 1-23 @ $11.99 ea. $119.90 • UNIFORM CITY 1(800)566-7300 Unisex— 50 @ $10.99 XS-XL $549.50 XXL— 10 @ $12.99 $129.90 LIGHTING • BEST DEAL (NEONS & BANNERS) (619)422-0397 NC $880 • ALLTECH SERVICES (619)691-TECH CV $1,100 NEW DECOR, MUSIC & TV • IN!ERIORS BY PAULA WATSON (619)482-9900 NC $0.00 Has not submitted bid to this date • DESIGN FOOD SYSTEM (619)303-3201 NC $0.00 2316 Highland Avenue National City, CA, 91950 UPHOLS I'ERY (16 BOOTHS & 48 CHAIRS) • BONITA UPHOLSTERY INTERIORS • ROBNETTS (619)474-1490 NC $3,120 $2,406 The first group of San Diego State students were eager and helpful in creating necessary restaurant improvements. They gave me a clear view of what I needed to create an up to date environment to help the business flourish. The second group, and more recent assessment of the students, had totally different ideas and recommendations for the business. They checked through the work of the first group and recommended more modern ideas. I feel advertising is a very great tool in reaching new clientele. So I have picked the Union Tribune to let our customers know we are still around after all these years. The Star News distributed in National City and Eastlake, the Chula Vista area help to promote and entice new customers. The Filipino Press which distributes all over the greater San Diego area, predominately the south bay, to acquire the Asian and Hispanic community. The bathroom and ceiling upgrade are necessary to make our services more inviting and a feel of a clean and neat facility. Restaurant menus are important to be competitive to other restaurants. The students mentioned the importance of having employee uniforms to have a consistent and better representation of our business. Identifiable, too. Lighting is very necessary for the safety of our patrons, About decor and music, at this time our customers are happy and glad that our food is very consistent. When the music in the kitchen is loud, they ask us to turn down the music and/or turn it off The theme may not be all together appropriate for our restaurant but people do compliment our decor as it goes with the seasons and holidays. Our clientele is 80% Caucasian and 20% Hispanic and Asian. In summary, here are the proposed expenses: $4,500.00 DYNAMIC CONTRACTING SERVICES $2,558.40 UNION TRIBUNE +$2,124.00 STAR NEWS $2,300.00 FILIPINO PRESS $575.00 MENUS & FLYERS $540.90 KNG INTERNATIONAL UNIFORMS $880.00 LIGHTING +$1,499.00 TV WAL-MART $14,977.30 Prices guaranteed for 3 months. Most of these businesses are in National City. Please fed free to contact me for further questions my numbers are (619) 274-1581 cell (619) 476-1581 home (619) 477-6262 restaurant (619) 477-0174 restaurant Thank you for allowing me participate in your program and for taking the time to point out the important facts and rules necessary for me to obtain this grant. I am iooking forward to hear from you and again, Thank you so much! Sincerely Yours, Patricia L. Santos PROPOSAL )r� PROPOSAL NO, PROPOSAL SUBMITTED TO: NAME V-L., i j eva,\ 4c.1..frov,,,s_-_____ ADDRESS. ' ' tio -1,4-0\11 hr PHONE NO. (rQ I 1 " ! � tit 9 y voc -1-'' WORK TO BE PERFORM SHEET NO DATE ADDRESS DATE OF PLAN 2 s q ..-- L--)V,8 ARCHITECT We hereby propose to furnish the materials and perform the labor necessary for the completion of (A) k11 i 1;- / Pi-. - e, q , r _oll vV , , i"1 "U r"1� l i f W! '.,`�J Y/ t o /i<4T � •� NiCc ....--sK t- .6 b(iii• ft-s+41 Pal) 524), ' c24,0 Ffmt4 .(..c ig -kw morf4--- All material is guaranteed to be as specified, and the above work to be performed in accordance with the drawings and specifi- cations submitted for above work and completed in a substantial workmanlike manner for the sum of Dollars ($ with payments to be made as follows. Respectfully submitted Any alteration or deviation from above specifications involving extra costs will be executed only upon written order, and will become an extra charge Per over and above the estimate. All agreements contingent upon strikes, ac- cidents, or delays beyond our control. Note —This proposal may be withdrawn by us if not accepted within days. ACCEPTANCE OF PROPOSAL The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made as outlined above. Signature Date Signature a% NC 3818-50 MADE IN USA PROPOSAL Exhibit "C" F Villdem Home Remodeling call £ V /-11,4z (f 05 6z3 -221.71g M R License # 768442 0 S.D., CA 92139 PROPOSAL Page No. of P Pages PROPOSAL SUBMITTED TO: PHONE bAr , -- /S —OF- NAME ej cJ ^✓ti--,eft,/ ��� eed„ (/ )JOB NAME STREET STREET CITY `4,11/ `a7 - s` �- v/ �eJ CITY STATE STATE We hereby submit specifications and estimate for: • . (fit o-D g4 Gt./ L: z ;r24-;,J-1- ,i( 2- J // ?'U7> r vz) &dZ). `zt J We hereby propose to furnish labor and materials - complete in accordance with the above specifications, for the sum of dollars ($ ) with payment to be made as follows: All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs, will be eseatted only upon written orders, and will become an extra charge over and above the estimate_ All agrezmans contingent upon stoles, accident or delays beyond our eve,aoL This proper} acceptance - ubjeci to acceptanwithin 3o days and it void thereafter at the option ofthe undersigned Authorized Signature ACCEPTANCE OF PROPOSAL The above prices, specifications and conditions are hereby accepted You are authorized to do the work as specified Payment will be made as outlined above. ACCEPTED: Signature • 11ATF Signature VIMM-1=;-CWtIO UU • 44 o!.v i auu i n b 4 a +d bbbi P.01/01 Hi Patricia, tht*lit rUnionrtbuE. 3 001PLAY NIDWaPAPEhe PROPOSAL FOR EL JUAN CAFE It was really great meeting you. Your food is excellent!!! As promised, here's the pricing proposal we had discussed. All prices are based on ad size 2" x 3". Full Run: Main, Night and Day( that's our dining and entertainment section) Run 13 weeks in 12 months: Mon - Sat $94 per column Inch - $564.00 Eaca Run / 13 ads $7332 Sunday $121.00 per column Inch. - $726.00 Ea ;h Run / 13 ads $9438 South Zone Open Rate 10 ads in 20 weeks 26 ads in 52 weeks 48+ads in 52 weeks 142,578 Four issue $21.85pci $17.50pci $16.40pci $13.15pci Zones publish Thursday and Saturday daily reach - $131.10 Each Run/ 12 months $1573.20 -$105.00 Each Run/ 10 ads in 20 weeks $1050 -$98.40 Each Run /. 26 ads in 52 weeks $2558.40 -S78.78 Eu.:h Run / 48 ads in 52 weeks $3781.44 Central Zone 409,040 Four issue Open Rate $60.00pci 10 ads in 20 weeks $54.00pci 26 ads in 52 weeks $48.00pci 48+ads in 52 weeks $42.00pci East Zone 158,897 Four Issue Open Rate $37.15pci 10 ads in 20 weeks $29.75pci 26 ads in 52 weeks $27.90pci 48+ads in 52 weeks $22.30pci daily reach -$360.00 Each Run/ 12 -$324.00 Each Run/ 10 -$288,00 Each _'un/ 25 -$252.00 Each Run/ 48 months $4320 ads in 20 weeks $1944 ads in 52 weeks $7488 ads in 52 weeks $12,096 daily reach -$222.90 Each Run/ 12 ads in 12 months $2674.80 -$178.50 Each Runt 10 ads in 20 weeks $1785 -$167.40 Each Run/ 26 ads in 52 weeks $4352.40 -$133.80 Each Run/ 48 ads in 52 weeks $6422.40 TOTRL F.01 03117/2008 11: �5 61942Fo346 SDNNEWPAPES PAGE 11101 Serving Chula Vista, National City, Bonita and Ea/Jai-aka The Lake ■ The Ranch The East County Californian The Alpine Sun • Prime Date: 3-17-08 Proposal for: Patricia Santos, El Juan Cafe Ad Campaign: El Juan Cafe Prepared by: John Moreno, 619-427-3000 x241 moreno@tnestarnews.com Publikatian Published Page Ad Size 12X- 12X- Non-Cons- Cons. 4"w x 4.5"1b. The Star Weekly 1/8 1.92"w x 9"11 $177.75 4"wx9.2.5"h The Star Weekly 1/4 6.08"w x 6.25"h S356.25 5.06''w x 3.25"h Prime 'Monthly 1/8 2.44"wx 6.5"h $150 10.25"w x 3.25"h Prime Monthly 1/4 ._44"w x 13"h $275 * Rates are based on once a month for The Star and Prime. Rates are based on a black ad. Color rates available upon request. March 18, 2008 Att: Pat Santos El Juan Cafe 2316 Highland Avenue National City, CA 91950 Re: Advertising Request with The Filipino Press Dear Ms. Santos: Thank you for your interest in advertising with The Filipino Press. Per our conversation with you, the advertising cost for 2x a month exposure with The Filipino Press will be $2300 for one year. The size of this ad will be 1/16`h or 4" x 6". Included in your package will be a promotional write up in the newspaper and also directory listing our website. Attached is a copy of our media kit for your reference. If you should have any questions or need additional information, please feel free to give me a call at (619)477-0940 or cell # (619)829-4460. I am looking forward to hearing from you. Sincerely, cwz Susan delos Santos Marketing Director P.O. Box 2226, National City, CA 91951 • Telephone (619) 477-0940 • Fax (619) 477-1024 Email: filpress@aol.com • Website: filipinopress.com w as low as 7.72 each Unisex 72+ $7.72 ea 36-78..421_$$eA— �- $9.25_6 ea (add 20% for size 2XL & above) Item# 1217 Unisex Sizes XS-3XL Colors: Forest Green, Yellow, Red, Navy Royal Blue, White, Black and Cardinal Cardinal Black White Royal Blue Navy Red Yellow Forest Green 7 oz. Pre -Shrunk 100% Cotton Jersey Knit Sport Shirt as low as $7A.each Women's 72+ $7.60 ea 36-71 $8.29 ea 1- 5 ea (add 20% for size 2XL & above) item# 1218 Women's Sizes XS-3XL Colors: Forest Green, Yellow, Red, Navy Royal Blue, White, Black and Cardinal Cardinal Black White Royal Blue Navy Red Yellow Forest Green 1 7 ounce, Pre -Shrunk 100% Cotton Jersey Knit Sport Shirts The 7 ounce 100% cotton sport shirts will work as hard as your restaurant staff.They look great after repeated washing.The Unisex sport shirt has generous cut inset placket with three buttons on it. The V-Neck cotton sport shirt is designed for women. It looks great after repeated washing. Fancy rib knit designs on cuffs and collar on both the Unisex and Women's shirts offer understated elegance, without distracting from the restaurant's embroidery design. rrrrrrrrrrrrrrrrrrrr` �rrr pi. 100% Satisfaction Guarantee to To ensure your satisfaction, we offer a 90 day " �' guarantee on everything we sell. Order the y) products you need. Try them for 90 days! If } you aren't completely satisfied, contact us for ice a full credit, refund or replacement. tte J✓�'SS✓✓✓S.nS:✓✓..!✓. 5 S: c5g1S1�✓.I✓✓✓ For Embroidery prices see page 23 '�y Care Pique Knits c�Lo As $9.99 �� IV1F�12-fs�l.kN ( L anvil u� Co XL Syr C Anvil® Easy Care Blend Pique Knit Quality constructed in a 50% cotton/50% polyester pique knit with three button placket. Fashion knit collar, cuffs and pearl buttons. Shown in navy. Available in all colors shown above. Sizes SM-2XL. UW30 Quantity Discounts 1-23 24-71 72+ Unisex sizes SM-XL $11.99 $10.99 $9.99 • Add $2.00 for size 2XL Group Order Discounts If your order total exceeds $495 please call our discount hotline today 1-800 293.7721 for a special quote D Soil Release Easy Care Pique Knit This value soil release pique knit, features a 2-button placket and wood tone buttons. Made from a comfortable blend of 60% cotton/40% polyester. Rib knit collar and cuffs. Shown in burgundy. Available in all colors shown above. Sizes SM-3XL. UW725 Quantity Discounts 1-23 24-71 72+ Unisex sizes SM-XL $12.99 $11.99 $10.99 • Add $2.00 for size 2XL-3XL CI-ftROKfL EMBROIDERED LETTERING $ 99 PER LINE jwith 3 or more embroidered garments 'See page 18 for embroidery UNISEX POLO • 60/40 poly -cotton • Pique knit • 3 button placket & side vents 5832 S-XL List 20:80 $10.99 2XL-3XL List 22-00' $12.99 UNISEX S MD LG XL 2XL 3XL Female 6-8 10-12 14-16 18-20 22W'-`24W Male 34-36 36 40 42-44 46-48 50-52 Pink - 02 Heather' [E(:)m Best --L - INVOICE N9- 000470 PROFESSIONAL SIGN OF ALL KINDS METAL • VINYL • BANNERS PLASTC•NMANUFACTURE' INSTALL. REPAIR D 11 :11eK0 (2 maHmsm, CRANE SERVICE 395 PALM AVE CHULA VISTA, CA 91911 PHONE: (619) 422-0397 • FAX: (619) 422-6597 CUSTUMER: ADDRESS: EZ- d Llo ii //14 e X Cc) 71 (---)c) DATE. 2-3 4 /----/I i ci ri (/ A L--- CASH. CITY: /VA -I c)/Z-/AL r ; c-t," CHECK #: DESCRIPTION i/V5-77)Z. A T-104- O -3 174 J..) ic ,,,:, ' _; A -71 s' .0 950 00 TOTAL $ 8 5 NOTE: '',//../e_. RECEIVED BY /, 7 .----9-4 0 o/19/106eIGN pJ4 PI6A- f- 2 cFC To (2).q. 6•}ti t-evzrk -v t Pw? Ciar LL.) te,c4 ad_ pa-xel ac, eizA,1/4,/ ? 20 2-0 J (36 r--" JJ oo V2.0 v 3 5- o -�--mod _ - _ _ C..t�c.Gt-�- i LAPS ebseis • Furniture •Auto •Boat Seats • Free Estimates •Repairs • Insurance • Free Delivery (SINCE 1947) /t ROBNETTS Upholstery Bus. 474-1490 Fax: 477-6355 9:00am-6:00pm Monday - Friday 26 E. 16th Street • National City, CA 91950 Customer's Order No.: Date:. Name: / >" j i` Make of Car: Street: License #: City & State: Color: Telephone: Sold By: QUAN DESCRIPTION PRICE AMOUNT %(. 'i ;�- .. . / ! i/ . r i ,� /,;t�l / �t r 1 /� ALL WORK GUARANTEED FOR ONE YEAR. Sub -Total Tax TOTAL Deposit Balance • Furniture • Repairs • Autos • Boat Seats SINCE 1947 ROBNETTS Upholstery E - mail: memo@robnettsupholstery.corn Bus: (619) 4741490 Web Address: www.robnettsupholstery.com Fax: (619) 477 6355 28 E 16th. St. National City, CA 91950 102 Name Address 9:00 - 6:00 p.m. Monday - Friday Free Estimates „ale i r -..r • r 9 -' i? City, State Tel. OUNTw LABOR: if='//t i y;. //17,7 /.2/.m'i f MATERIAL: ,l • / ALL WORK GUARANTEED FOR ONE YEARS Customer Signature SUB -TOTAL TAX TOTAL DEPOSIT BALANCE ray &Ida vidweererf, 9aretects etad nQ 2+r?Jl / ei74melite 4328 Grace Road • Bonita, CA 91902 (619) 475-7276 Ce1. (619) 840-8647 Fax 9) 475-7034 TO< C /LJ `T. SC.w& 1975 r 4 le JOB DESCRIPTION: JOB ESTIMATE P NE J B NAMEILOCATION DATE 2///1 iok )4,47- .....mac - /LSE 079(1 s so,rr--' We-.5 )447-- ,4&6/ ,04.4 _; :_, ,'� _: : L-L.-._- THIS ESTIMATE IS FOR COMPLETING THE JOB AS DESCRIBED ABOVE. IT IS BASED ON OUR EVALUATION AND DOES NOT INCLUDE MATERIAL PRICE INCREASES OR ADDITIONAL LABOR AND MATERIALS WHICH MAY BE REQUIRED SHOULD UNFORESEEN PROBLEMS OR ADVERSE WEATHER CONDITIONS ARISE AFTER THE WORK HAS STARTED. ESTIMATED JOB COST ESTIMATED BY Search results for cony bravia - Wal-mart' Page I of 2 WAL*MART Save money, Live better.' SEARC Free shipping with site istore Electronics • sony bravia 4 items found for "sony bravia" in Electronics NARROW SEARCH RESULTS Price $500 74750 (1) $750..-41,000 (1) 1,000 - $1 250 (2) TV Screen Size 26";to36" (2) 37" & Larger (2) Special Offers Below List Prices (2) Also In Many Stores (1) Delivery Options Free Shipping.: Site to Store (2) Technology TFT active matrix --------------------- (2) Items 1-4 of 4 total Sort by: Featured Items Sony 40" Bravia LCD HDTV with Digital Tuner, KDL-40S3000 • 720p • 1366 x 768 resolution, 16:9 ratio widescreen • 8000:1 dynamic contrast ratio • HDMI, component video and VGA inputs • Built-in digital tuner Model #: KDL-40S3000 Sign in or create a new account. r Cart My Account Track Order !Help Reaistry Wish List € Gift Cards FIND Sony 26" Bravia M-Series LCD HDTV with Digital TunerL KDL-26ML130 • 720p • 1366 x 768 resolution, 16:9 ratio widescreen • 1000:1 dynamic contrast ratio • HDMI, component video and VGA inputs • Built-in digital tuner Model #: KDL-26ML130 Sony 32" Bravia M-Series LCD HDTV with Digital Tuner, KDL32ML130 • 720p • 1366 x 768 resolution, 16 x 9 widescreen • 2500:1 dynamic contrast ratio • HDMI, component video and VGA inputs • Built-in digital tuner Model #: KDL32ML130 Sony 37" Bravia LCD HDTV with Digital Tuner, KDL-37M3000 • 720p • 1366 x 768 resolution, 16:9 ratio widescreen * • 1500:1 dynamic contrast ratio • HDMI, component video and VGA inputs • Built-in digital tuner Model #: KDL-37M3000 See all departments List Price: $1, 499:94 Our Price: See our price TO List Price: $699794 Our Price: See our price --OR-- In Limited Stores IN MANY STORES $767.00 on_ ADDT0 CART to ore Free shipOny to your store. --OR-- $1,197.00 Free shiopin4 to your store. --oR-- In Limited Stores FEND IN STORE http://www.walmart.com/search/search-ng.do?search constraint=3944&search query=son... 3/16/2008 SONY 40" BRAVIA®1080p LCD HDTV with dual HDMI inputs and PC input. WEB ID: K0140V2500 SO 40" 72 Ir Measures rfiogo_ g t� ; ter automatically adjusts screen brightness for opt l 4 ; on your toom's lighting. 2 HDMI inputs. (10l40S3QOQ)8 40"BRAVIA V-Series LCD Flat Panel HDTV Have a sensational viewing experience with a 1080p HDTV featuring 10-bit processing and 10-bit panel display, which produces more colors and smoother color transitions. $1,59999 • • • KDL-40V3000 (shown) - after $300 instant savings $1,499" • • • KDL-40V2500 - after $200 instant savings 3�6 (866) 535 - SONY (7669) Business/ Property Information 1. Year Built: 1946 Square Footage : Approx 2500 Parcel Number : 560-382-0900 2. Is this an Historical Register Building: Yes No _X (check one) Is this is a building of known local significance Yes X_ No (check one) escribe work to be completed. Repair ceiling / roofing. Update bathroom. Implement marketing plan and marketing materials. 4. Proposed start date: 02/15/08 Proposed completion date: 05/15/08 (before June 30th) 5. Number of Employees : 10 Sales Tax Revenue Generated this Year!,$31 6. Please indicate how many full-time (FT) and part-time (PT) jobs will be Retained or Created once the project is completed? Retained Created Officials & Managers FT PT Professionals FT PT Technicians FT PT Sales FT PT Office/Clerical FT PT Craft (Skilled) FT PT Operations (Semi -skilled) FT 10 PT Laborers (Unskilled) FT PT Service Workers FT PT FT PT FT PT FT PT FT PT FT PT FT 6 PT FT PT FT PT FT PT 7. Attended a Loan Application Orientation Workshop Yes No (check one) 8. Project Criteria X Yes No Participated in the San Diego State University Small Business Technical Assistance Program Yes _X_No Participated in Southwestern College's Small Business Development & International Trade Center Technical Assistance Program X Yes No Business has a current Business License issued by National City —X Yes No Is located within the National City's Redevelopment Area? __X_ Yes No Creates Additional Jobs? If yes, how many? Part Time Full Time X Yes No Located within a Community Benefit District and is in good standing ^X Yes No Applicant has prior business experience in ownership or management X Yes No Business has a business plan and marketing plan X Yes No Applicant's business complies with all ADA accessibility guidelines X Yes No The business had been in operation for more than 5 years X_ Yes No The business has been in operation for more than 10 years Yes X_No The business has been in operation for more than 15 years X Yes No The business supports the Comprehensive Storefront Exhibit "D" X Yes X Yes X Yes X Yes X Yes X Yes X Yes X Yes Improvement Program No The business provides longer business hours to serve customers? Hours of Operation? AM to PM No The business/ project adds to the overall economic vitality of commercial area No The business/ project creates a synergy with existing businesses (business to business sales tax generation) No The business/ project demonstrates compatibility with neighboring businesses No Business/ project supports pedestrian oriented activities and interaction No Business/ project enhances physical appearance of the commercial area No Business/ project enhances safety of commercial area/ community No Business/ project enhances quality of life for residents of National City 1 certify that the information contained in this application is true and accurate. I submit this forgivable loan application with full knowledge of the application process and I understand that I am not guaranteed a forgivable loan or funding for my project. If my project is approved and funded, I understand that I will be reimbursed for approved costs under the terms of the loan agreement. I understand that this loan application is due February 22, 2008 for available program funds for the 2007-08 fiscal year. 2-2/-OK plicant Signature Date Signed Tenants requesting assistance to perform work to the property must have authorization by the property owner to participate in the program. P J• perty Owner Or 2-2 I -0( Date Signed Tenant Responsible for Property Improvement Work Date Signed OMI Ap,xoval No. 320.5-8t88 FINANCIAL STATEMENT As of Dec, , e'y -fit, 2 007 Date: 5/12/2008 03:50 PM Sender's Fax ID: Business Owners Insu Page 2 of 2 ACORD CERTIFICATE OF LIABILITY INSURANCE OP ID MD ELJUA-1 PRODUCER Business Owner's Ins Agency Monica G. Reinholtz, President P.O. Box 87523 San Diego CA 92138-7523 Phone:858-874-0101 Fax:858-874-3801 DATE (MM/DD/YYYY) 05/12/08 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED E1 Juan Cafe Patricia L. Santos 2316 Highland Ave. National City CA 91950 INSURER A The Zenith INSURER B. Allied Insurance Group INSURER C: INSURER O. INSURER E. COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE OMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INsR LTR Auu L INSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECT IVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/W) LIMITS B GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY ACP7822024626 11/15/07 11/15/08 EACH OCCURRENCE $ 10 0 0 0 0 0 RtNItU PREMISES(Ea ocasence) $ 300000 CLAIMS MADE OCCUR MED EXP (Any one person) $ 50 0 0 X Business Owners PERSONAL &ADV INJURY $ 1000000 GENERAL AGGREGATE $ 2 0 0 0 0 0 0 GENII AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $ 2000000 POLICY JECT LOC AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Ea accident) $ BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR L. I CLAIMS MADE DEDUCTIBLE RETENTION $ AGGREGATE $ $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below C065755306 04/01/08 04/01/09 X TORY LIMITS WC STA1U-OER E.L. EACH ACCIDENT $1000000 E.L. DISEASE - EA EMPLOYEE $ 1000000 E.L. DISEASE- POLICY LIMIT $ 1000000 OTHER BUILDING 349800 PROPERTY 154400 DESCRIPTION OF OPERATIONS 1 LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Re: Operations of the named insured subject to the terms and conditions of the policy. 10* days notice of cancellation in the event of nonpayment of premium. CERTIFICATE HOLDER CANCELLATION Proof of Insurance PROOFOF SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHOR! REPRESENT ACORD 25 (2001/08) fl '10/9AAQ mnm r i, ©ACORD CORPORATION 1988 Exhibit "E" Community Benefit Loan Application Applicant Name: Patricia L Santos Applicant Address: 534 Kiley Rd. City: Chula Vista State: CA Zip: 91910 E-mail Address: TSmith@rohan.sdsu.edu Phone: 619-477-6262 Fax: Business Name: El Juan Cafe Business Address: 2316 Highland Ave City: National City State: CA Zip: 91950 Federal Tax ID or Social Security Number: 140-64-8528 Type of Business: Restaurant Date Established: 1946 Type of Entity (Check One) ❑ Corporation Status of Applicant (Please check one): X Business owner X Property owner with tenant business Business Ownership and Management ❑ Partnership ❑ LLC X Proprietorship Name Patricia L Santos Title: Owner % or Ownership: 100 Name Title % or Ownership Name Title % or Ownership If moPlease attach a copy of the grant deed for the property. Project Request Loan Amount : $15,000 Use of Funds Leasehold Improvements Machinery & Equipment Vehicles Working Capital Inventory/Supplies Other:Update Remodel, Advertising Project Location: Ceiling / Bathroom / Marketing Sources of Funds Applicant's Equity Bank Financing Private Lender San Diego County CDC Loan Collateral Available (Attach a sheet if necessary) Describe real estate, vehicles, or business assets that may be pledged to support your request. 2 Parcels — 560-382-0900 & 560-382-1000 EXHIBIT "F" PROMISSORY NOTE SECURED BY DEED OF TRUST San Diego, California June 30, 2008 1. For value received, the undersigned, Patricia L. Santos doing business as El Juan Cafe ("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 30, 2008, 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 Community Benefit Loan Agreement or the Deed of Trust entered into between the Borrower and Lender on June 30, 2008, 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 Community Benefit Loan Agreement or the Deed of Trust (all collectively, the "Community Benefit Loan Agreements"), the Community Benefit 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. 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 Community Benefit 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. 1 EXHIBIT "G" 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 Lender to exercise any and all of its contractual, legal or equitable remedies including but not limited to those set forth in the Community Benefit 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 Community Benefit Loan Agreements, or on the occurrence of any other event that, under the terms of any of the Community Benefit 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 APNs 56-382-09-00 and 560-382-10-00 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 attached to the Community Benefit Loan Agreement as Exhibit "H", and 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 Community Benefit Loan Agreements. This Note is the Note referred to in the Community Benefit Loan Agreements, as well as the Deed of Trust, and is entitled to the benefits of the Community Benefit 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 2 EXHIBIT "G„ 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 VI of the Community Benefit 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. 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 Community Benefit 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 Community Benefit 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 Community Benefit 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 (0 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 Community Benefit 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 3 EXHIBIT "G" 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. In witness whereof, the undersigned has caused this Promissory Note to be executed as of the date and year first above written. Borrower: Patricia L. Santos doing business as El Juan Cafe By: , r / Z� /�atricia L. Santos, Sole Proprietor 4 EXHIBIT "G" 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 Economic Development Division 1243 National City Boulevard National City, CA 91950-4301 And When Recorded Mail To: Community Development Commission of the City of National City Economic Development Division 1243 National City Boulevard National City, CA 91950-4301 DEED OF TRUST THIS DEED OF TRUST is made this 30th day of June, 2008, by Patricia L. Santos, whose address is 2316 Highland Ave., 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 2316 Highland Ave., National City, CA, 91950, APN Nos.560-382-09-00 and 560-382-10-00, in the City of National City, County of San Diego, State of California, described as: Lots 2 and 3 in Block 1 of Victoria Heights, in the City of National City, County of San Diego, State of California, according to map thereof No. 2240, filed in the office of the recorder of San Diego County, October 4, 1939. 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 Fll-TEEN THOUSAND NO/100 DOLLARS ($15,000.00), and any renewal, extension, or modification of the promissory note (the "Note); EXHIBIT "H" (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 furnished 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 - 2008 Patricia L. Santos doing business as El Juan Cafe 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 Community Benefit Loan Agreement referred in the Note are incorporated herein by reference and made a part of 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 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 3 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe 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 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, 4 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe 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 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 VI of the Community Benefit Loan 5 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe 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 - 2008 Patricia L. Santos doing business as El Juan Cafe 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 Economic Development Division 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 - 2008 Patricia L. Santos doing business as El Juan Cafe 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 "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. 8 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe 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. Governing Law (21) This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. 9 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe Dated: 'r; n.e 2 C z-(,) g DEBTOR Patricia L. Santos doing business as El Juan Cafe if 77 Pftricia L. Santos, Sole Proprietor SECURED PARTY Community Development Commission of National City on, Executive Director State of California ) County of1)/ - o ) On.1l1JE A 5, 37 before me,41OH / f//O.S ge4, personally appearedPA AiL. S1.NtVS who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. nature of Notary Public YOLANDA RAMOSE COMM. # 1544861 NOTARY PUBLIC-CALIFORNIA® SAN DIEGO COUNTY n COMM. EXP. N. 31, 2009 12 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe $15,000 NOTE National City, San Diego County, California. FOR VALUE RECEIVED, the undersigned promises to pay to the order of Community Development Commission (CDC) of the City of National City at National City, San Diego County, California, or at any other place in the State of California that any holder of this Note may designate in writing, the sum of $15,000 with interest, from the date written above until paid, at the rate of 8.5 percent per annum. This Note, together with all interest due on it, is due and payable as follows: DEBTOR AND CDC agree that if the BUSINESS is sold, hypothecated, vacated, leased, transferred, assigned, or alienated on or before five (5) years from the Completion Date of the improvements as agreed to in the Community Benefit Loan Agreement, the Note shall be repayable in full by the DEBTOR to CDC, upon demand, with interest at the option of the CDC. The payment of this Note is secured by a Deed of Trust of this date from Patricia L. Santos to CDC granting a security interest in and to the following described property: 2316 Highland Ave., National City, CA, 91950, APN No. 560-382-09-00 and APN No. 560-382- 10-00, together with all other property described in or referred to in the Deed of Trust. The maker shall have the right to prepay the principal of this note in whole or in part prior to its due date without premium or penalty. If this note is placed in an attorney's hands for collection, or collected by a lawsuit or through a bankruptcy, or probate, or any other court, either before or after maturity, there shall be paid to the holder of this Note reasonable attorneys' fees, costs, and other expenses incurred by the holder in enforcing the terms of this note. Failure to pay any part of the principal or interest of this Note when due, or failure to carry out any of the terms, covenants, or condition of the Deed of Trust, shall authorize the holder of this Note to declare as immediately due and payable the then -unpaid principal, and to exercise any and all of the rights and remedies provided by the California Commercial Code as well as all other rights and remedies either at law or in equity possessed by the holder of the Note. The makers, signers, and endorsers of this Note jointly and severally waive presentment, notice of dishonor, and protest. 11 Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe Dated: fryue 25 2GI0cc DEBTOR Patricia L. Santos doing business as El Juan Cafe � (-Zn 4Tt77 Patricia L. Santos, Sole Proprietor SECURED PARTY Community Development Commission of National City Bra State of California,) County of` r ) 0/l� d ) On J IJ CC 4; � � before me, �; ' df) % It i S L,/ �'ersonally appeared ((/} card L-- S-Aifl' aho proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. xecutive Director 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 12 '17it: YOLANDA RAMOSE :_'i `GA COMM. # 1544861 ` r ? ."� 'NOTARY PUBLIC-CALIFORNIA SAN DIEGO COUNTY O ?' • COMM. EXP. JAN. 31, 2009 " Deed of Trust - 2008 Patricia L. Santos doing business as El Juan Cafe