Subordination Agreement 2001-0800166
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, ' :- 024548 DOC' 2001-0800166
. NOV 01, 2001 4=59 PM
Recording Re.quested By and '
When Recorded, Mail To: OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
Fremontlnvestment.& Loan GRE6lJRY J. SMITH, COUNTY .RECORDER
175 N, RlveNlew Drive . FEES' 49 00
Anaheim; CA '92808 . .
Commercia.1 Real Estate Department
Attn: Norma Rincand
Loan No" 950113926
r~ (Space above this line for recorder's use)
SUBORDINATION AGREEMENT
THIS SUBORDIJIlATION AGREEMENT (this: '.'Agreement") is entered into as of
September fl., 2001, beIWeenPOWAY'LIBRARY PLAZA, LLC, a California limited liability company
("Borrower'), THE CITY OF POWA Y,a general law city ("Junior Lender') and FREMONT INVESTMENT
& LOAN, a California industrial loan association ("Fremont").
RECITALS
A Junior Lender is making or has made a loan to Borrower in the original principal
amount of Eighty-Five Th9USfr:.d Dollars ($85,000) (the "Junior Loan")" evidenced by that certain promissory
note dated as of . '-\ p.i 0) from Broir to JuniorLEnider and secured by, among other
(jin9S, that certain c1eeP-nm:ust dated..lls o. f '-\ ~$ \:) I , executed by Bor~owi!r, as trustor, to
MII""M~.\-\L W:r as . trustee, and naming Juntor Lender, as benefiCiary, recorded on
as Document No. in the Official Records of
County, California (ihe ';Official Records") and encumbering the real property described
on Exhibit.A attached hereto and incorporated herein by reference (t~e "Property"). The documents
evidencing, securing or reiating to the Junior Loan are hereafter referred to collectively as the "Junior Loan
Documents:1
B. Fremont is making or has made a loan to Borrower in the original principal amount
ofTwo Million Seven HundredThousand Dollars.($2,700,00Q) (the "Senior Loan") evidenced by that certain
Secured'Promissory Note dated July 5, 2000 from Borrowerta Fre,montand secured by, among otherthings,
that certain Deed ofTrust and Fixturi!Filing dated July 5, 2000 executed by Borrower, as trustor, to Fremont
General Credit Corporation, as trustee"andnaming Fremont, as' beneficiary, recorded on .July 6, 2000 as
Instrument No. 2000-0357519 in the Official .Recards and encumbering the Property . The documents
evidencing, securing or relating to the Senior Loan are hereafter referred to collectively as the "Senior Loan
Documents.t1
C. Fremont has indicated that it will not extend credit to Borrower unless Junior Lender
executes this Agreement.
This document Is ca~ \0 be alma and 9.Drrect
copy o~. . . .. ginal~n1illltrecorded 1/ -/ ~bW/
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28468294.3 917011705P 01839862 as lilSl . ent~.. . '. . !(:;t in the office of the
. Recorder of san [liego County
COMMONWEALTH LAND TITLE CO,
') OF SAN DIEGO
I (5)~616 ,LJ By.,_^.~~~r :::~~~ lirJ><:
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NOW,THEREFORE, forgobd and valuablec9nsid,er:atio!l;the receipt and adequacy of which
are hereby acknowledged'by each pa'rtynereto, the parties hereby agree:
1 DEFINITIONS. As used herein,
a."lndebtedness" shall mean all advances, debts, obligations and liabilities of
Borrowerhereiofore, nQw or hereafter made,'incurred, suffered Or created, whether voluntary
or involuntary ami hO\v<lver arising, whether due or nbfcjue.-,absolute orcontingent,liquidated
or unliquidated, determined or undetermined, and whether Borrower maybe liable individually
or jointly or in its c,?paqity as a general partner ofa borro\yer" including withoullimitation
obligationsandJ!abilities;arising afterthe commencement of any bankruptcy or.insolvency
proceeding by or,agairistBorrower;
b. "Junior)ndebtedness" shall mean alllndebtedriessnow or hereafter owing from
Borrower to Junior Lender in connection with the Junior Loan; and
c, "Senior Indebtedness" shall mean all Indebtedness now or hereafter owing from
Borrower to FremonUn connection with the Senior toan.
2. SUBOROINAII()N. Junior Lender hereby unconditionally'subordinatesaU Junior
Indebtedness, and the lien or charge of all Junior loan Documents"toaU;Senior Indebtedness, and the lien
or charge of all Senior Loan Documents,
3, RESTRICTIONS UPON PAYMENT OF INDEBTEDNESS, DISPOSITION OF
PAYMENTS RECEIVED BY JUNIO~I.Er-lDER. RESTRICTION~fuPON TAKING OF COLLArERAL, AND
RESTRICTIONS UPON ACCEl.ERATION AND EXERCISE OF REMEDIES. Junior Lender irrevocably
consents, agrees and directs that,allSenior,lndebtedness indefeasibly shall be. paid in.full prior to any payment
to Junior Lender NO,payme,nts shall be made by or on behalf of Borrower to Junior Lender if Borrowerwould
be in breach of a-covenant ot'BorroweYcontained in any agreement between Borrower and Senior Lender
upon giving effect to any such payment. Upon notification by Senior Lenderio Junior Lender in writing of the
occurrence of an "Event of Default;" or event which with the giving of notice ofthe passage of time, or, both,
would constitute an "Event of D,efaull." under any of the Senior Loan,Documents now or hereafter in effect
between Borrower and Senior Lender, then' such limited right of Junior Lender to receive payments as
specified aboveirnmediateiy shall cease until such time, if any, as aU "E"ents of Default" or potential "Events
of Default" under any ofthe Senior Loan,pocuments now or herea.fter in effect between Borrower and Senior
Lendethave been fullycured,or waived by Senior Lender in writing"or until such time, if any, as all Senior
Indebtedness is paid .in full. Ex~ept ,t<l'the limited extent that payments,are permitted pursuant to this
Section 3, Borrower will not make, directly or indirectly (including any indirect payment by means of
repurchase or redemption by Borrowerofsubordinaled Indebtedness), and Junior Lender will. not accept or
receive from BorrOwer or any guarantor<lf alLor any portion ofthe junior Indebtedness, directly or indirectly
(including .any indirect receipt, c:>f payme[lt by means of any redemption or repurchase by Borrower of
subordiria.t",d Indebtedness), any liayrrient or benefit, in cash, property or otherwise, on account of principal
of or interest on'9r any other atnountsp~y.able with respect to ahy.JuniorJndebtedness. If any such:p.ayment
is:made or re<:eived JuniorLend~rshail immediately deliver,the same to Senior Lender in the forinreceived,
with any endorsement or assignrrientnecessary for the transfer of such payment from Junior Lender to Senior
Lender, and, iintilso.delivered; Junior Lender shall hol~fsuch paymentin trust as the property of Senior
Lender. Except for the security interests in.favor of Junior Leriderin effect as ofthe date hereof, all of which
have been disclosed by Junior,Lenoer and BorfowertoSenio(Lender and all of which are subordinated
pursu,lOtto th<lterms of this Afireerrient, Junior Lender shatrnot l<lkeor hold any Iiens"securityor collateral
from Borrower for the Junior Indebtedness so long a,s.a[ly',Senior Indebtedness remains outstanding.
Notwithstanding any default or event of default with JesPectto the Junior. Indebtedness, Junior Lender shall
not exercise any Mits rights or remedies under the JuniorLoan,Dbcuments (including, without limitation, the
imposition of any late charges, default'interestor other fees or penalties), shall not accelerate the maturity of
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the Junior Indebtedness,shaJr nolitaKe'any legal or equitable acti()nslo coUect or enforce such Junior
I ndebtediiess or any guaranty> olall :or -any' portion .of such Junior.lndeptecjne~s,(including, withoullimitation,
the'commencemelit of any jlliJicial'orlioiijlJdicial foreclosurEi'proce~(jings), shall not sEl.ekto attach or levy
uponanyass_et~>orpropertiesof Borrower, and shall not instigateorjoin ili the instigation of any involuntary
bankruptcy,or:insoivencyproceedil1g';againsIBorroweror, any guar~ntQrof aU or any portion of the Senior
Inoebtedness,'withoulil1 each case obtaining the prior written ~on.se.ntof Senior Lender,which Senior Lender
may.grahtofwithhold in Its sole discretion; 'provided that, n()twith~t?ndingthe.exercise of any remedies by
Junior Leriderwith,the consentofSeniofLender, the Junior'lndebtednessshall continue to be subordinated
in right of payment to the Senior Indebtedness upon the terms her~ot
4. DISPOSITION OF' EVIDENCE OF.JUNIOR INDEBTEDNESS. Junior Lender
warrants to FremonUhalit has nott\eretof6re assigned, transferred, hypothe.cated or disposed of any Junior
Indebtedness to any third party and Ju'nior Lender shall not, except in an'instrumeniwhichmakesreference
to the subordination of such .Junior, Indebtedness in accordance ,with this Agreemel1t, assign. transfer,
hypothecate, or dispose of any' claim it has or may have againsfBorrower while any Senior Indebtedness
remainsoutstandirig.
,5, AGREEMENT TO BE CONTINUING" APPLIES 'TO BORROWER'S EXISTING
SENIOR INDEBTEDNESS AND ANY SENIOR INDEBTEDNESSHEREAFTERARISING; ThisAgreememt
shall be a continuing agreemehlal1d'shaU apply to any and all Seniorl,ndebtedness of Bo.rrower to:Fremorit'
now existing orhereafter arising as part of , the Senior Loan or relalingto lt1!'lprote.ction ofthe secuiil}itlierefore
including any Senior Indebtecjnessas part of the Senior Loan orrelaling,totheproteeti6n,oUhe security
.therefore()fany receiver, trustee, debtor"in-possession-or the similar.pefsonor entity that is a successor in.
interestof Borrower in theevel1tofSorrower's insolvency.
6. NON.-TERMINJ\TIONBY JUNIORLENDERSolong as any Seniorlndebtedl1ess
remains due; or so long as Fremont~as anyoulstanding commitmentto extencf credit to or.for the account
of Borrower, Junior Lender may notterminate this Agreement for any reason whatsoever.
7 NOTICES OF DEFAULT, MODIFICATlpN,S. junior Lender,herebyagrees ~o send
to Fremontacopy otany.default notice sel1tby Junior Lender to Borrower under or in connection with'any of
the Junior Indebtedness oraDY of the Junior LoanOocumenls concurrently with thedeliveiy oMuc~ notic.El
to Borrower. Junior Lender h>ere!?y agrees that It shall not. without:Frerriont's prior written consent; whi.ch
Frem~rit lllaygrant orwitl1ho!;iinits sole discretion, modify any 6UheJuliior Loan Documents to s.!)ortEln the
maturity thereof, increase the a'inount,secured by the Property, increase the interest rate thereunder or
otherwisemal<e the terms ther!Oofmore onerous to Borrower .
8: INFORMATION, OTHER AGREEMENTS.,Junior,Lender agrees thatF,re"!,qntshaU,
have no obligation toinforrii Junior, Lender or keep Junior Lender informed of .theflnancial and other
. information pertaining to Borrowe(s financial condition, Junior Lent:lElr?ss~mes the responSibility to keep itself
adequately'ihfofmed by such meanso.f any facts, e.vents orcir<;:umstarices which mightin aiiy,way:affect
Junior:Lender's risks hereunder, and Junior Lender'agrees':that:Frembnt shall not have any'obligation to
disclose to Junior Lerider any information or material acquired by Fremont in the, course' ot',Fremoht's
relation,shipwith.Borrower Should, Fre..mont e1e<::t to provide informationto~uniorLendera.. a cOurtesY;.Junior
Lender understands that,. by proViding such information; Fremont snail not be deemed to have warranted the
accuracy, cOmpleteness or value 'of the information so. provided; and JunJor Lender agrees'thalFremOnt sh'aU
not naVel anyliabilitytq Junior Lenderfor.providing inaci9urate, Incomplete, erroneous or outdated information.
Junior,LenderundeJ'l;ta!lds that th,ere. may be various agreemEmtso'etWeenFremol1t and Bbrrowerevidencing
and governing the Senior Indebtedness, and Junior Lender. acknowledges and agrees that such agreements
are not Tntendedtoconfer any'beneflts.onJunior Lender and ,that FreriiontshaUhaveno 'ob';igaffon to.Junior
Lender'oranyother.person to exercise any rigl1ts;:e!lforc!O'<lnyrellledies, or take any other' actions which
may be'availableto them.~nder such agreements. N()!hingint~is Agreement shall obligate Fremonlto give
any notice, of any default or event of default to J\lni<?r'l:.ender'at,any time, provided that nothing in this
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AgreernenCshall cpnstitute',a'W~iVElr ,PY' J,uflior Lender of'anynotice. rigtits"provided by applicable law in
connection with a foreclos,ure'of the\SeniorDeed of Trust.
. 9, TRAN$F~R9i=A~sErsORRE~OR<3ANlzATIONOFBORROWER, Asamaterial
ind.ut::Elrnent'to FremQnt tOimake the ,Senior Loan. to Bor,rower, :,iJndJor so long as any of th.e Senior
IndebJedness rElmain~ unpaig'Qr ~OY, of Borrower's obligatiQ[I~ under,the:Senior Loan Documents .remain
unperformed, Junior Lenderhereby agrees 'that it shall nolfile'or consent to an involuntary bankruptcy
proceedingwithrespecllo BorroVl~r or:any ofils general parTne~s"or,join in any such fiHng,withoutiheprior
'written consent of Fremont,',which Frel11QnJmay grant or withhold i.nJ.ts sole discretion. 'Intre eyentBorrower
enters into oris the subject of anybankru~tcy proceeding, receivership,insolvency, assignmenHorttie benefit
i:lf'creditors, reorganization, whether. or not pursuant ti:lbarikruptcy laws, sale;of all or,sullstaritiallYiallof-its
'assets"dissolution~'liCluidation'()r ariy"other,marshaling of theassetsarid:liabilitiesof BorroWer; then in any
such event any .paymentordistrii:>,utiop i:lf'any.of Borrower's assets, whether in cash, securities,or'other
property, shall be paid or delivered firsl:t()~Fremont unWall Senior Ind~l:>tedness'ispaid:in,full.ln the event.
Junior Lender receivesany,such_,paymel1tor distribution that is payableto':f'remont pursuanttothe,terms,of
this Agreement; Juriior Lenders,hall,hold:such payment or distribution.andforthwith deliversameiri kind'to
Fremont.
10. NO,W~IVERBY FR.EMONT. No delayorJaih.ire of Fremontin exercising any right
or remedy hereunder sh,!1I beid.een'll~d a waiver. of, such righfor remedy. Any waiver, permIt, con~enlor
approval'ofany kind by Fremont mustoe in writing and shall be effective only to the extent set forth in such
writing.
H. WAIVERS.'AND,CONSENTS BY JUNIOR LEI\IDER,AII ofthe Senior Indebtedness
shall be deemEl.dJohave.beenmade'or.incurredin relianceupqn this/\greement, and, except as otherwise
expressly provided herein;,.Junior,Lend,erexpressly waives. aU notic,e,.Of;.the'apceptance by Fremon!of the
subordination and other,provlsionsofthisAgreement and all other. notices whatsoever (except as seHorthin
the last sentence ofSection8'above), and Junior Lender expressiywaives reliance by Fremonlupon the
subordination' and other agreementS as hereih provided,
Junior Leoder.agrees (a) that Fremonthas not made,any'warranti!ls or reprElsentationsto
Junior Lender with resp~ctto th.e 9ueEl~e,cution, legality, validity;~!"pleteness orenfQr~_ability of the $enior
Loan Documents, or thecollectibilit}o of the Senior Indebtedness,.'and:(b) that,. absent fraud oriilteritional
miscoriduct,F'remont shall'ni:lthave(ariyliabilit}i.to Junior Lendei:lor,and,Juriior Leilderwaives any,claim or
defens~ which Junior tender may I)ow or,hereafter have againstFremontarising out of (i) any 13nd all actions
which FremonHak_e.s ororT1it.s tcita~ei(indllding, .without Iimita,ti.on, '13cti~ms with respect\to,lhe <<?r~<3tion,
perfection or continuation ofliens or security interests in any collateral, actions with respect to the occurrenCe
of any defaultoi'.event of default: actionswittirespect totheforeClosure,upon"sale,release of, depreciation
of or failure:to reali.ze upon,.any collateral and actions with respecUo,the coUeqtion of any claim forali or any.
part of the S~nior.lndebtednl3ss;,from any,ac:count debtor,guarantor or any,other party) with respect to the
Senior Loan Documenls in effect from time to time, (ii) Fremont's election,ili any proceeding irislitutedunder
Chapter 11 cifi1t1e110fthe~UnitSd States.code (11U.S.C. g'101et seq;-j,(the;"BankruptcyCode");ofthe
application,or nonapplication'of Section 1111 (b)(2) oftheBarikruptcy.Code. and/or (iii)any borrowing~r grant
ofasecurity interest by Borrower,'as'debtor~in-possessian, under Section 364 of the BarikruptcyCode.
Fremont ackno\yled9Elsthat Junior tender has:rl)ad" no warranties onepresentatians to
Fremon\wlt~ rllspectto the due'exElc~,tiol1,legality, va.lidity;completElness or enforceability of the Junior Loan
DocumentS or the'collectibilityoftheJunior:lndebtedness.
Fremont, at anyJime(andfromtime to.time,mayenter,into such agreemerits,withBorrower
as Fremontrl)ay,deerl) proper/extendingtheIirnefor paYl11ent.of, or renewing or otherwise aliering lheterms
of all. or E1nyof thel';enipr, Indebtedne,ss, (other !hanincr!lasingthe, principalamolJnt IJf the ~_el1ior Loan except
inaccorda~ with the terms,of the Senior Loan Documents)'oraffecting any security unejerlyingany or all
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oi'syc~ Seni.or Indebteclnes~!,or (l)ay'ex9hange, sell, release;surrei,derorotherwise'deal.wlthanysuch
~ecu[ity,wi.thout~inanyw?y iiT]pairingiOr aJ:fectingthis Agreemen!the'feby. Fremont shall notbe required to
proceed againstBorrower or,any.surety orguarantor or against any collateral heretofore'or hereafter provided
by Borrower or any, surety or'guarantor prior to or as a condition of. exercising of enforcing .its righis
thereunder
JuniorLenderwaives anyrightto chailenge.'atlack orseek to avoid the Senior Indebtedness,
or any liens on'coliater'!lisec~ring'sarn.~, under C;alifoniia Civf1:,code)~ecii'?I'!S'3439'etiseQ" to the extent
, applicable, Bankruptcy Code Section 548, or anyothercomparaole lawor,st?tute, and agr~s that the Senior
i Indebtedness was incurred, 'and;,any liens securing same were granted,in 'good"faithi for reasonably
i .eqliivalentvaiuetand upon the basis,ofbalance sheets and cashflow.siClfements demonstratingtlie solvency
and [a~equate caplt?liz?tlon!,aQd ()!;!~h ~())N of Borrower. Everl' in,the event.anYof the Sehiof Indebtedness,
or allY li~n_secyrLrlg ,same, shouldb!! invalidated, avoided or setaside"thesubordination providedfo'r herein
n,everthelessshallfcontinue in<full,force a'iid effect and, as betWeen,Fremont and Junior Lender, ,the Senior
Indeotedhessshall'be deemed't6 remaiiiin full force and effect.
'In the,event that\all or,any partoi'the Senior Indebtedness at any time is , secured ,by any
deedsof.trust or mortgages' or ojher inslrumerits creating orgrill;til1g,'liens'on:any interest in reaFproperlY
(which event has occurred'imd;js )co-rite'mplated to ocCur)" Junior'tendehilithorizes,Fremonl,liponthe
occurr.e'l}ce of and during the continuance.6fanyeventof default, at its soJeoption, without notice ordem".nd
and without affecting any obligaticins of,Junior Lemder hereunder"th!l enforceabilit}t.ofthisAgreement, orthe
validity or enforceability'ofany liens:of:Fremonl on any coll"teral;,(oJoreclQseanyand all of,slJch d~e.,cl,sof
trust or 'mortgages or 'olherinstn.iments by judicial or nonjudicial':sale. Except to the extent required::by'
appJicab1e.'lawrelating to ~u(;~,fq[El910sure or ~aleiJUnior Len,der e~pressly waives any rightiO receive notice
of'any judicial or nonjudicial foreclosure,orsale of any:real property.or;interest'thereinsubject to"any' such
deeds of trustor mortgages or other instruments and Jt.inior Lender's'faihiie to'ieceive any'st.ich notice shall
nofimP?iror.affecrJunicir"Lendef'sobligati6hS t6Fremont or the enf6rceabiiityof this AgreemEln!or any liens
created or,granted hereby.
1.2., APPtI(;~TJONOF PAYMENTS. Junior'Lender agrees that Fremont,maY'?llply.
paymellts ~eceived 'from. Borrower in such manner or fashion as F remon!~in. its discretion deems ,apPtopriate,
and Junior Lendershallli8ve norightt6directthe mannerorJashi6h in which Fremont applies such payments.,
. ,13., MISCELLANEOjJS, This .Agree,men! ~inds' and inures to ttie; benefit: oftlie
. successors:and. assigns of' the, parties,-iincluding.without;iimitation 'the' hoJders,of any:participatiori~iriterests
purchased from Fremont, proviaecfihat JunioiLendermay notassigriJhe:Jt.iniorlndebtedness excepias set
fortfl'in Seclion4:at;ove. This'Agreement may not be amended,'modified:or terminatedexceptby.a'writlen
instrument signed by the party oi parties to.be.charged.
14, APPLICABLE/LAW. This Agreement shall be.,governed by and cqnstruedln
accordance with the locallaws,ofltfe State 6f Califoinia, without reference to choice of law rules.
15, CbUNTERPART'EXECUTION. This AgreemenfmaY-ibe executed:in counterparts
and shall become effective as o!.tne'date',flrst setforthaboliewhen each.partyshallhave delivered executed
counterparts hereof to the ()theipartiesiWhereupon all such counterpar1s s.h.all be deemed originais-and; when
taken together,i,shall'constitutEl'~ut one agreement
16, AUTHORITY.. Junior Lender herebY,certifieslo Fremont that Junior L.ender has all
necessaryauthbiity,to granithe,subordination evidencedJiereby and'toexecu!e this Agreemeiit: . .
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1ic.qsJS.tit/D:I:,XPEJIISES OF PROCEEDINGS. In the event.6f,.any litigation,
arbitration, hearing'orother proceeding relating iothisAgieeineiit, the,pievailing.party shall bE! entitled to
recoveri!s reasonabie costsand,ex)lenses, includingatlorneys'fees; As!usedin this Agreement, the'term
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"attorneys~fees';or ;'attorneys'fees':ahd costs" shall mean the'fees,andexpenses'ofcounsel tothe:parties
j, h~reto,which rnay,.ihcludeprihting, photostating,duplicating and otMerexpenses;airJreightcharges, ahdfees
billedJor law clerks, paralegals, liorarians'and,6thers notadmitted:tothe bar, bUt'performihg,serviCesur\der
the sup~rVision ofah,attonf\ly' The,terms'''attorneys' fees",or 'iattorneys"fees'and,costs"'shall also' include,
withoutlliniitatioll' all:such fe(ls,and eXpenses incurred with;respectto.appeals, arbitrations, bankruptcy
proceedings'and,any po~t'judgmel)t'proceedings tocoIlElct,an,y j~ag'ment, and whether or not any action or
proce~ding i,5 brought with respect to t~e matter for which s,aid:fees,and expenses wElre incurred. The
pro,yision.s.all.owingfqrthe re,9overy ofj:JOst7judgment fees, costs and'expenses are separate and several and
shaH survive'the!merger of this Agreement into any judgment
18, WAIVER,OFRIGHTTO TRIAL BY JURY. EACHP.ARTYTO THIS AGREEMENT
HEREBY'EXPRESSCY WAIVES,ANY:RIGHTTO TRiALSV' JlIRY;OFANY'CLAIM;,DEMAND, ACTION
, ~ -'. - ,~ -
OR' CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR~ANY OTHERHNSTRUMENT,
DOCUMENT OR AGREErvtEN:T~XE!:;lJTED,ORDELIVERED1IN CONNECTION HEREWITI:I; OR(B) IN
ANYWAY CONNECTEDWITHOR RELATED OR INCIDENTALTOTHEiDEALlNGS OF THE!PARTIES
. ".'._ _~__ _.__'_' _."._,...._._..,'.._".__..~....',._.>O._.,....~.M. '. ". ._'>r' ,_ .~._,.'-_........_._~ ,_ ~- ,_",_,_._."_,-,__,_",~_,,,,__".__,"__,,_.
HERET.OlqR~!'lYOFTH~M;N.ITJ:!J~E~P:E,CTTO THI~A.GBE~!'v1I;..N1'2~ "'fIIY,9THI:,~'I.t,t~JRIJMENTi'
DOCUMENT OR. AGREEMENT EXECUTED ORDEUVERED IN'CONNECTION HEREWITH ORTHE
", _ .<__;>__ '..,... .~< < '. .,.. ... ___._"" .. . '_._ ,___ ._~,_ _ c -. _ '_ -. -',.. _' .... .__".,_ ~, ~ "._ ... "'c~ -,. ~ """"""". ~_ '" . _ 0_ _ ,.~ .._'" '.. ",O'U - -, '..-- -,- -.. .,
TRANSACTIONS: RELATED HERETO OR THERETO, IN EACH CASE'WHETHER NOW EXISTING OR
HEREAFTER ARISING,ANiYWHETHERiSOUNDINGINCONTRACTciR':fORT OROTHERWISE;AND
EACH PARITHEREBY AGREES.AND'CONSENTS:THAT ANY;SUCHiCLAIM, DEMAND; ACTION OR
CAlJSE;.OF.i~c;;rJOt:l SH~t:I",~.E;D~c;IDE,DElY C<;lURT TRIALWIJJiOUTA JURY; ANDTHAT At<IY PAR.TY
Te> THIS AGREEMENT MAY I'ILE:ANORIGINALCOUNTERPART OR. A COpy OF TH1S'SectioIlWITH
ANY COURT,As,wRIuEN EViD-ENCE Oi=1'HECONSENTOFtHE PARTIESHERETO~io:iHE.wAIVER
OF,1'HElit'RIGH1.'TOTRIAL BYJ'URY: AS BETWEEN juiilIoRlENDERANDsORROWERONLY'THE
-' - .-....>.'..~_.~..~..."...-.-,-. .~-~ .~, .-_..~.,..-,,,,.-.,.,-...~.,..,.,../.. -',. ......' "" .~-,.._._.. ",,"",""""-"","- ....- .. ," - ,-- .~-' ._.~.,--',,,,.~.
FOREGOING WAIVER, SHALL NOT 'BE DEEMED TO APPLY TO ,ANY OF THE JUNIOR LOAN
DOCUMENTS OTHERTHANTHIS AGREEMENT,UNLESS'SET FORTH:INSUCH,DOCUMENTS.' .,
. 19. N01}CES; Any notite,orother documenror demar1~required or perrnitted under.
this'Agr6cement!'.hallbe in'Vo'ritingacldre~sed.totheappropriateCl9clr~s.~ set forth llelow and. shall be cjeeme,d
deJi)l~red upon t~ee~rlie~t ,!fi(a)'Clp~~lr~ce)pt,(b) then~>ct ~,ll,;;lnllss"dayaf1~rltl~ d~tecwhen sJnl by
recognized overn!ght courier/or(c) the second business dayafter,the date when sent by registered or certified
mail,pastageprepaid. 'Any party may, from lime to'time,.cnahge,the address atwhich,suchwritteh hotice or
other,documehtsiordemands are to be sent, by giving the other,partywrittennoiice:of such'chahge'inlhe
manner heteinabove.provided.
To Fremont: Fremont Investment&l:oan
175:North Rivervie.wpri)ll'...
Anaheim, California.92808
Attention: CommerCial Real Estate Department,
. Norma Rincaiid:
Loan .No.95011.3926i
To Borrower' cJg.MeissnerJacquet ",
3670, Murphy Canyon Ro.ad
Suite:300'
San Diego, Califoihia-92123,4421
Attention:Tini Meissner
To Junior Lender' PO"YllY R!ldeyelop1l)ellt,A9l'..ncy
13325 CivicCenter,Drive
Poway,.Calirornia .92604'
Attention: Executive:Directot
2846e294.3,91701 1704P' 01839862
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'1065536 adhoc -8D:200100800166 11/09/200101,20 PM60f16
" . ..
0"24'554.
20" FlJR'rHE~ ASSYRAt<lCES. JunioE,L:enge(sJ:lall,,~t any lime and fromJimeto 11m!".
upon,~herequesi ()fJ'remol)l;execule; Ol,c:kno.wledge and,deliveraJlsllc<hfur}h,er docum~nls <m.d insl~umen~;
aildtake all such further aCtions,asshal\ be necessary or reasonable 10 give efiectto the agreements setforth
herein.
,
2&46e294.3; 91-701' 1704P ~ 01~B39s62
,7'
l06S536adhac "SD:2001.008()0166 H/0912()()j.Ol:20pM 7af'16
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0245.$5
INWITNESS,WHEREOF,tne partieshaveexecliteattiis'A(:jfeemehlasof the date first set
forthal5ove.
FREMONT'
FREMC)NT I}lVE~.:rMENT&WA,.!\i,
a California:ihdustrialloan'association
-
By: ~ i(E~~
It~: ,~, -~ ," 'fJ t1-d:'J...rI--"
BORROWER'
POWA YLIBRARY p'LAZAiLLC, a:.Califomia ,
IimitEld'iii~'lity'comp<lny
,
";,
"
JUNIORltENDER:
THE'CIr:Y'OF POWAY"a general law city
~",,~.~*~
'. .ltS:~~'" .: ~.
,
2s4sS294.3: 91'701; 1704P'01839sa2
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t065536 adh'6c,- SD:2001 ,00800166 11'/09/200101.20 PM 80[16'
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.
024556
STATE'OF CALIFORNIA )
, COUNTY OF 3A-f\ C)'it'5O ) SS,
)
on~, before me, S\\eu';(: t).\viJrrella Notary Public, personally appeared
"\\.~ \'\e'\SSl)e.t..... .". " ,v","ulldlly;~,!"",,,tol1le(orprovedtomeon,lhebasisof
satisfactory,evidence)to bethe persdn,whose name is subscribed to the with,}n instrument and acknowledged
I to n\e,that~5Ae executed the samEjjn~/tlef authorized capacity,)andthatby ~sigilature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument
WITNESS my ha[ld and official seal.
~~
Notary Public
I." -,_~~.Oat "'
_', Commission #.1223093 '
'~ . No,fayPubljC-CalikmO ~
j' Son DIego County f
My Comm. El<pi'es jun:Jl2lll3
---------------
28468294.3- 917011704P 01839862
.9.
1065536 adhoc - 8D,20QJ Q0800166 11/09/2001 01.20 PM 9 of 16
.-----..-.-....- --.-- .-..
. 024557 .
STATE.OF CALIFORNIA )
COUNTY oF3Mf'l\?'Ej/) ) SS.
)
On --9J ~ \1 0 \ , before me, Sl'tPrrt9 D. ~fI('N II ,a Notary Publici personally appeared
:lame... l. !N:,\l)"'~'( . personally know.n tome (ar ~r8'1eateFRs 010 II,s 685i5 cf
~aHd"d",y e"iasFise) to be the person whose name is subscribed to the within instrument and acknowledged
to me that @&I1e executed the samedn~ll:lerauthorized capacity'"and,.that bycOiSiflefsignature on the
instrument the person, or the entity upon behalf of which the person acted, executed the instrument
WITNESS my hand and official seal.
~DQlbw1
Notary Public
1- - - - -S;R;E;. ;o;'Bil' ~
G Commission # 1223093
i. Nafoy Public -California ~
) San Diego Coun1y ~
_ ~ _ ~~~dTl~~~:~~~~,
28468294.3 917011704P 01839862
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1065536 adhoc - SD:2001 00800166 11109/2001 01,20 PM lOof16
..' . .
02455.8
STATE OF CALIFORNIA )
[) (2."", (-f' ) SS.
COUNTY OF )
On Cd,,&'1 2?, 260 I, before me, ./j'oiZmA R-iA . 72"JJ~ a Notary Public, personally appeared
(ry-rA-n+- !hI! , personally'knQ.wn to me. (Gf--j3f6VeEl--tlHllO OR 11l0llasis
el-satislactOr'j evidence) to be the person whose name is subscribed to the within instrument and
acknowledged to me that he/shlrexecuted the same in hislJ:lerauthorized capacity, and that by .hisl):ier
signature on the instrument the person, or the entity upon behalf of which the person acted, executed.the
instrument
WITNESS my hand and official sea!:
NORM" PIT"-RINCAND
. comm1s<lan # 1234987
i . NolCl'/ PublIC- California . ~
z. Orange County I
~ _ _ _. ~~tr:~~~1~z:n "
I
284662$4.3 91701 1704P 01839862
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024559
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Page 3
EXHIBIT "A"
PARCEL 1
All that portion of the Southwest Quarter of the Northwest Quarter of Section 13, Township
14 South, Range 2 West, Sap. Bernardino Base and Meridiah, in the County of San Diego,
State of California, according to Official Plat thereof, described as follows:
Beginning at the Southeast comer of said Southwest Quarter of the Northwest Quarter; thence
along the East line of said Quarter
1 North 1040'30" East, 50,00.feet to a point on the Northerly boundary Of the public
road known asPoway Road-R.S. 944 & R.S 1713, thence continuing along said'East
line
2, North 1040'30" East, 340.02 feet to a point on the, Southerly boundary of Heritage
Hills Unit No.4, Map.No 6486, thence along said. Southerly boundary of Heritage
Hills Unit No.4, Map No. 6486
3 North 89008'30" West, 23.92 feet to the True Point of Beginning; thence.coIitinuing
along said Southerly boundary and the Southerly boundary of Heritage Hills Unit No,
1, Map No. 5934
4 North 89008 '30" West, 458.49 feet to a point on the Easterly boundary Dithe public
road known as Tarascan Drive; thence along said Easterly boundary
5 South 1033' 47" West, 319,76 feet to the beginning of a tangent 20 foot radius curve,
concave Northeasterly; thence Southerly, Southeasterly and Easterly along the arc of
said curve through aceIitral angle of 90042'17" a distance of 31 66 feet toa point on
the Northerly boundary of Poway Road; thence along said boundary
6. South 89008'30" East, 220.50 feet to a point distant thereon North 89008'30" West,
241 feet from said Point "A", thence Northeasterly in a straight line to the True Point
of Beginning.
EXCEPTING THEREFROM. the Westerly 120 feet-measured along the Northerly line.
The Eilstei'1y line of said Westerly 120 feet being drawn parallel with the most Westerly line
of the above described land and the Southerly prolongation tnereof.
PARCELl:
All that portion of the Southwest Quarter of'the NorthwestiQuarter of Section 13, Township
14 South, Range 2 West, San Bernardino Meridian, inctheCity of Po way, in the County of
San Diego, State of California, according to Official Plat thereof, described as follows:
CLTAPreliminary Report Fonn (Rev. 111/95)
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Page 4
Begifining at the Southeast corner of said Southwest Quarter of the Northwest Quarter, thence
along the East line oisaid Quarter North 10 40' 30'; East 50 00 feetto a point on the
Northerly boundary oithe public,road known as Poway Road R.S.. 944 & R.S. 1713-1;
thence continuing along said East line North 1040' 30" East'60.49 feetto the True Point of
Beginning; thence leaving ~a!dboundary North 880 50' 38" West 165 04 feet; thence South
01004' 39" West 61.34 feet to a point on the Northerly right of way of said Poway Road;
thence along said right oLway North,890 08' 30" Wesi76.59 feet; thence leaving said right
of way North 330 59' 15" East 406.01 feet to a point on the Southerly boundary of Heritage
Hills Unit No.4; accordjng to.Map thereof No, 6486, filed in ,the Office of the County
Recorder of San Diego COllnty, September 23, 1969; thence:alotig said boundary South 890
09' 49" East 23.92 feet to a point onthe Easterly boundary oisilid Southwest Quarter of the
Northwest Quarter; thence along said boundary South 010 41' 14" West 279.53 feetto the
True Point of Beginning.
PARCEL 3
A walkway access easep1eJit,over a.portion of the Southwest Quarter of the Northwest
Quarter of Section 13, Township 14 South, Range 2 West, San Bernardino Meridian, in the
City of Poway, County of San Diego, State of California, according to Official Plat thereof,
more particularly described as follows:
Beginning at apointon the Easte!ly boundary of said Southwest Quarter of the Northwest
Quarter, being all intersectioilwith the Northerly right-of-way'of poway Road, according to
Road Survey 944; thence along ,said Northerly right-of-way.
1 North 89008'30" West 5786 feet to the True Point of Beginning; thence along said
right-of:way
2, North 89008'30" West 42,14 feet; thence leaving said right-of-way
3 North 01040'30" East 61.01 feet; thence
4. South 88050'40" East 42.32 feet; thence
5 South 01050'35'; West 60,79 feet to the True Point of Beg inning
PARCEL 4
A parking easement over a portion of the Southwest-Quarter of the Northwest Quarter of
Section 13, Township 14 South, Range 2 West, SanBerIl~rdino Meridian, in the City of
Poway, County of San Diego, State of California, according to Official Plat thereof, more
particularly described as follows:
Beginning,at a point on the 'Easterly boundary qfSaid Southwest Quarter of the Northwest
Quarter, being an intersection with the Northerly right-ofcway of Poway Road, according to
Road Survey 944; thence along said Northerly right-of-way
CLTA Preliminary Report Form (Rev 111/95)
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i
1. North 89008'30" West 100.00 feet to the True Point o'fBeginning; thence along said
right-of-way
2. North 89008'30" West 64 41 feet; thence leaving said right-of-way
3. North 01004'39" East 6134 feet; thence
4 South 88050'40" East65.05 feet; thence
5 South 01040'30" West 61 01 feet to theTrue Point of Beginning
PARCEL 5'
A drainage easement over a portion' of the Southwest Quarter of the Northwest Quarter of
Section 13, Township 14 South, Range 2 West, San Bernardino Meridian, in the City of
Poway ,County of San Diego, State of California, according to Official Plat thereof, more
particularly described as follows:
Beginning at a point on.the EasterIy boundary of said .Solltl1west.Quarter of the Northwest
Quarter, being an intersection with the Northerly right-of~waY of Poway Road, according to
Road Survey 944, thence along said Northerly right-of-way
1. North 89008'30" West 134 65 feet to the True Point of Beginning; thence along said
rightcof-way
2. North.89008'30" West29 76 feet; thence leaving said. right-of-way
3. North 01040'39" East 61.34 feet; thence
4 South 88050;40" East 29;84 feet; thence
5. South 01009'20" West 61.19 feet to the True Point of Beginning
PARCEL 6.
A fire service easement over a portion of the Southwest Quarter of the Northwest Quarter of
Section 13, Township 14 South, Range 2 West, San Bernardino. Meridian, in the City of
Poway, County of San Diego, State of California, according to Official Plat thereof, more
particularly described as follows:
Beginning at a point on the Easterly boundary of said , Southwest Quarter of the Northwest
Quarter, being an intersection with the Northerly right-ofcway of Poway Road, according to
Road Survey 944; thence along said Northerly right-of-way
1. North 89008'30" West 148.36 feet to the True Point of Beginning; thence along said
CLTAPreliminary.Repon'Forin (Rev 1/1/95)
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Page 6
right-of-way
2 North 89008'30" West 16.05 feet; thence leaving said right_of-way
3. North 01004'39" Easti7 89 feet; thence
4 South 43010' 12" East 15.24 feet; thence
5 North 88057' 15" West 13,67 feet; thence
6. North 01002'45" West 43.87'feet; thence
7 South 88050'40" East 10 01 feet; thence
8. South 01002'45" East 53.48 feet; thence
9 South 88057' 15" West 18.89 feet; thence
10 South 01002'45" East 7'.09 feet to the True Point of Beginning.
PARCEL 7
A water service easement bei]].g l! portion of the Southwest Quarter of the Northwest Quarter
of Section 13, Township 14 South, Range 2 West, San BernardiI).oMeridian, in.the City of
Poway, County of San Diego, State of California, according to Official Plat thereof, more
particularly described as follows:
Beginning at a point on the, Easterly boundary of said$outhwest Quarter of the Northwest
Quarter, being an intersection with the Northerly right-of"wayofPoway Road, according to
Road Survey 944, thence alohgsaid Northerly right-of-way.
1 North 89008'30" West 93.36 feet to the True Poinnif Beginning; thence along said
right-of-way
2. North 89008'30" West 10.00 feet; thence leaving said right-of-way
3 North 01"34'20" East 61.03 feet; thence
4. South 88050'40'! East 10.00 feet; thence
5. South 01034'20" West 60.97 feet to the True;PointofBegiiming
APN: 317-101-09, 10
CLTA Preliminary-Report Form (Rev 1/1/95)
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Page 7 024563
PARCEL 8:
Easements for vehicular ingress and egress and vehicular Parking as provided in that certain
" "Agreement granting EasementsJorJoint Use of Parking and.Driveways" dated June 14,
2001 by and between the City of , Po way and Poway Library Plaza LLC
APN 317-101_31,32,9 and 10
CLTA Preliminary-Report Form (Rev 1/1/95)
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