Free Amended Complaint - District Court of California - California

Case 5:07-cv-04808-JF

Document 7-6

Filed 10/18/2007

Page 1 of 4

EXHIBIT E

TO FIRST AMENDED COMPLAINT

Case 5:07-cv-04808-JF
May 14 07 12:07p
FortntMaUíff~ones.for

Document 7-6

Filed 10/18/2007
559"432-2878

Page 2 of 4
p.2

DISBURSEMENT AGREEMENT
(Ower and Contracr)
This Disbursemenl Agreement f'Agreeel") Is made by

and betwn BPWESTCÖM3T PRODUCTS ll.C, A

Delaware limted llabily company and thse persons degna1d below as "Owner and 'Contractor".

RECIT ALS

A. Owner has ente-ed into an agreement wit Cc¡ntlactor lor the cons1lction on the propert describe below
(tt.e -Job Site") of th ceran improvements

describ below (the "Improvements"~ ror the total sum set

lór below (the "Contract Prie"),
B. Ower and BP WEST COAST Minì Market

PRODUCTS LlC entereiritoa Cotract Dealer OasolineAgrt\ernent (am/pm Agreement¡ (the "FranCliseAgreemènf)
COAST PRODUCTS LLC

C. Owner and BP WESTCOASTPRODUCTSllC ehierèd .Irito a loan Agreements dalèd Februarvi2' 2007
andrelled agreements (co1leclíve!y, the "Loan Agreement') wheréby ~p WEST

agreed to loan funds pursuant to theloanAgreement '''Ccmstruion loan PrOCeeds") uoder the terms and
conditions as setfcrth therein (the "Construction'Loan Procedure').
D. The pars hereto hereby intend 10 provide

lor the disbursement 01 the Construction Loan Proceeds upon the

terfT,S and co.ndrnoF's hereinafter set lorth.

NOW. THEREFORE. in corsideralfon 01 the. CQvena"ls andagreemenls heteìriaflersel forth. the parties iireeas follows:

OPERATIVE PROVISIONS
1.
COST esTIMATES. Contrar .shall prepare a cct breakdow estimate (the "Cost

and submit for revie by BP WEST C.OASTPRODUCTS LLC Estlmale') in a fo prescrìbed by gp WEST COAST PRODUCTS

lLC.
2.
AUTHORIZATION OF DISBURSEMENT. OWer and Coiitracioihereby PRODUCTS lLC or itsdéSigòe 10 disburselteCoríucUon Loan Proceds schedule of

authorize BP WEST COAST
In accordance wit the

Loan Procs Independent of 1hs Agreemen~ nOr shaIlOw"eì havea"y rihll,o dire.ctlt'e tie, manner or
moe of disoursement ofaai or any porton of

10 time by BP WEST COAST PROOUCTSllC.. The progress payments detr:rrniied from time Constructio" loan Proeeds shall be under the exclusive control of BPWEST COAST PRODUCTS LLC or í1 deslgnet. Neither Ower nor Contror shll have any right; litieori"lenest, In or to

the Constuc:n

thereat. Nolhing in this paragraph shall be construed as a waiv ofConlrts Mtchanic'sLieorStop
Notice rights under Calrornia law.
3.

the Constructoo Loan Proceeds or to demand repaynie,,1

PROJECT DISBURSEMENT INSTRUCTIONS. .Constn~on L,oanProceeds WILL be d,iSbùl'ed lrom lime to
tìmeupon teceptby BP WEST COAS PRODUCTS LLCorìts desigí:ee PROGRESS

Owner orOmr and. Contrctor, aci:mpanííd by original detàiled. ínvcíi;es, and' UNCONDITIONAL or
CONDITIONAL WAIVER ANL). RELEAE UPON

ofPayV6uchers.

executed by

general contract. each subcontrtor who fu'mished labor, equipment. materials or sèrvicesto the Job Site, and ea rmtenalman. suppier and vendo wh furnished materials to lheJob SIte dUringlheperlo covered
by said payment BP WEST COAST PRODUCTS LtC or tterre~itse. pay .

or.FINA PA'fMENT, .as approriate. for

its designee shan, al ~helrsoled¡screlÎon based on
and agreelht' BP WEST

SUCh P~ Voucers.. AI.I parts undend PRODU.CTS LlC. or its deeignee ~,th!! righLIa withhold¡:mllnt oii any provided.

supportng docmmntation reB$Qabl requested is no

Thís mayindud original Invoice, job Inspn oard copy, IRS lorm W~g. appropritelìen .relèaseslor labo and/or materias. reipts. photos, revise coslbrakdew and Affdavit andCertoaon ofCompletionot Builder/Contracr.
rOT",L PROJECT FUNDING. The fundsp,r?Vded hêreìnarethe maximum fu"duvaìl.able,underBP WEST
COAST PRODUCTS lLC's Iqan prgram and disbursed under this Agreement Thee Loan

COAST ,and aU Pay Vou~hef$ Ii

4.

5.

COST BREAKDOWN AND, APPROVED PLANS, Prirto. issliance of Pay Voucoers aM dÍ$bursemenlof any funds, Ower and Contractor wil.providffto.BP WEST COAST PRODUCTS LLC;

enllrety. .
P.
Sperictions rQr all constrn, Improven(¡and equipment at The Prime Contract between

Agreement andsre.lte only ftnd$ wh will t)

funds ma~ or may not be8Uiciel to, cOmplte. the proec II it

a.
c.

Completed Cost Breakdown for aD conslrtièr, Improemantsand equipment at the Job

the Job Site;

Site; an

llC.
6.

Owner s"d Conlractor,as'reCluired by BP WEST COAST PRODUCTS

OWNER'S TRE. DRESS ExPENSES AND PACKAGING fEE$. OWrrral\d COritl'cI hereby
acknodge and u"derstiind !hatdurìng the cöurse of cåiruèlìon BP WEST COS lor trade dress and pacaging

COAST PRODUCTS LlC may from IÎmetoUme wìthholcertn fundsfromdlsburseme"tWlich:are identified as Owner's calcula!!d
fees pursuantt01l Fra,nchíse Agreement end loan Agreement. In eIn
instance wwreirdedress 0( packa!!ngføe are nrrt Ini:jjoated in the

original buget or Whre flmds. as

dlsburs~d. are' insuffcit for the wlthholdJl!qUirement,ther ap WE,STCOAS.T PRODUCTS tLC wilL, at its
discretn; wilthold the need~ fuds from butlii items whic It deems approprta~,

7. APPLICATION OF FU.NDS.
7.1 BP WEST COAST PRODUCTS L,LC dQes nolguarantee thaI (a) the costruciion 01 the Improvemenis Win pr, bb compled orbeìnai;rdanc8 wih the plans.an/orsi:cifícotirrns il and Whencopkle; or (b) lhqualit,of workmanship or materiiils. Nor doeBP WEST COAST PRO\)UCTS LLCguarantee th

Q:\COMICOAIUNOOlsaoc.ào 1
O.....W7 ...~ t:1I C..Of1,._OC.",.~'.,4".~lI..'..rn.._t. .. ~I 0,4 .¡ ~ 0'1.,

151

Case 5:07-cv-04808-JF
May 14 07 12:07p

Document 7-6

Filed 10/18/2007
55"432~28 78

Page 3 of 4
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Fortun~aU~~one&.for

paynt of IIllobJigatins incurred by Contròr or Ower In COnnection wi1h th conSlfic;bon of me

Improvements

7,2 BP WEST COAST PRODUCTS LlC or Is deigneewiU not be requíriid to disburse any fws for any labolandor materil whic., In tfopiniqnolBP WEST COAST PRODUCTTlLC, exce Itevakkeolsuch labor andor material or whiclWWIl reduc 1he undisbUrs funds below tI).eamountn~rY to complete the

Improvements.

7.3 in th event 8 mechanIc's lien

Is filed against the Job Site as a. resutof the construction of the

ImpròVements, or in the eventS? WEST COASTPRODUCTSllC i.s.senled with II N9tie 10 Withhoo~, BP WEST COAST PRODUCTS ll.Cmay,. at its optlon. p;orcompromise ioaid líenorNoliCe to Withhold, or any
action or judgment bas thereon, deucting all oolsand èXpense&sòincurred, Inciuding reasonable
attomey's fees, from the funds remining COAST PROOUCTSllCmay eleclnot to on depoit with BP WEST

COAST ~ODUCTSUC. BP WEST

pay or copromise anY6\hUen or Nodce icWllhhold, or acton, whiC i,Sdlsputed, in sood faHtt by OWner or Conti:clor,and whíchOwner or Cont/áCtor is a¡their own expenselhen diligently contestin, provded, that upOndemand to OWer by BPW~ST qOAST PRÖOUCT$
purchased by OWner and acceptable to BPWEST COAST PRODLiCTS,lLC suffcient.

LLC, Ihere shall be reçoedln theoffiel recon!soflheCountywherèll JobSite.isloc;ated. a s.urety bond
to saJjsfysuch clõ\ìrn

as shall be detrmined by BP WEST COAST P ROD!JCTS lLC. Any amount so deposited shall be disbursed
in accordance v-th the resolution of thecontes!. Notring hereJo sh¡;l¡ alter Ower's obligation to pay

for Contractor In full

work perlormed, pursuant to the terms of the Owner/Contractor agreement.

8.

INSPECTIONS AND PERFORMANCE.
81 BP WEST COAST PRODUCTS LLC Will inspèctor c:use to be.lnspecedtte Job

Site from time to bme,

.and at such limes as it deèms necssary. Thet; inspectiòns are soiely Iorthe purpose 0: ascel'ining the
stage 01 con$tructionand whether certin wok has proressed' and' not fortle purpose of determIning
whèthr.lhe cons1lction of the Improvements is in accodance With

the plans anor specificaticns. nor
the equivalent

whethr siJch constrUCtion has been aaorTplishe in a IJooo, substantia! and worrmanNke m¡;nrrr.

(If .or a SUbstitute for architectural superv~ion. '

ConsequentlY,such iospection by SP WEST COAST PRODUCTS LlC ssQUId not be deemed

8.2 When BP WEST COAST PRODUCTS lLC has di$burr theConstruccion Lean ~roceds, its
obigaoonsunder this Agreement shall cease. BP WEST COAST PRODUCTSLlC is lor th qualíiyof the labor or material used In con!\oonwiththe Improvements

not resposible eithEr

deleets, errors or omissions incooslnon Which may from ttmi\ to time eppear,
9.
AUTHORIZED SIGNATURES. The

or for Ihe correction of any

signatUre of thse. partiesi¡et lotth below as "Authrized POlrtes"

("Autized Pares") on disbursement ordere eubmltted to BPWESTCOAST PRODUCTS LlC lor paymnt
Sishall conch.Jsively, írrevocbiy end finally esGsh the righlol BP WEST COAST PRODUCTS lLC to make paymntinthe amount, manner and 10 the person designate on such Pay Voucher, and shall collUtutea repressntatónthat the IabØr.' materiaas andlr'services there re(erred tOVfreactually. furnished... or be entitled to rey therenand shall be payent made. BP WEST heldJree an COAST PRODUCTS LLC may. in Its are . to,~, furnished, totl"e. Job Site and rnorpraled in the Improvemenlsbeing constl\clèd theren andBP WEST COAST P~ODUCTS UCshall on account of the construcion ofthelmproemnts on th Job

harmless in conrrcton ¡herewith, to the extent of the

discretin, dectiiito pay any disbursment order lor good cause. and may, in ils discretion~payanydisbursanint orderwiltoutthe signture of th Authoried Part, but any such payment must De

proper in emounterrdpurpose. The payment of any
a shall not

dii¡bursemnt order by 6PWEST COAST PRODUCTS LLC s,halinot becQnstrued as COAST PRODUCTSlLC's rlghttocontroldisbursemenlol fundS,exeitsè of such right an (ibligation by BP WEST

of1hequality or suffciency of the labr, materls or servce repesented thereby. NótwithsländingBP WEST

guaraniy or warrnty

COAST PRODUCTS LlC to insure that work or mateñ are in complíancv.th th plans andspeìfiations, or any govemmennai or reufalor agency, or to Insure ttat undisburse funds

coSttu

are alany time ,sUffcient to complete the Improvments. ' , ,
10. MIS.Ci:LLAEOUS. . contr In 60 tar

This Agreement modifies a,lI prior agreem.eiis. WrttÌlor orl, anc:Contraor's
as lheywould otheeisebe in corlicwith Iheproslons hereo(. Thísnotwitstanding,

between themselves, Owner a.nd Colrac:or affrm the existence and enforceabilltyoflhe underlYing cons,irction contr betWeen them, date Navembe 21, 2006 (th 'Prime Cörìractj, fnch..(jng but nOl limite 10 th piiyrentQbfigrítionsof Owne.rto Conlrccr,lf any provision öfthis Agrømenjis found invalid or Inefteçtualfor any reaon Whatsver, such invvlidity's!!U nQt in any way affec any other proviSio hereof.
11. UNSUIABLE SOIL CONDITONS, If the Job Sitei Dr any portlhereof uporrwhich the Improvmenl$ are to be construcd, is filled ground, OIground otherwise uosuitable to supprt suCllmprovemi:nts as th same
are designed an engineered, Owner the and

as

Contracor shatl Immediately upon diioverng su façt dilose

same to BPWEST COAST PRODUC'IS,llC and cease .all future worle. on the ,Improvement$ uhti ~r

orConnnctor and BPWEST COAST PROD!JCTS LLC have agre; in wrillng. to rernmehcecxnstrucbon operations.

12. ATTORNEYS FEES. ExPl as specificaiiy set fOth heren; thi& piigraph'8ppliesbetween OWnera.i:d BP Wes ,Coast Pn:ucts, lLC, o,,/y.. In the event of any dispute, aag out of Ihís AgrementOf ,the permace Ihereof, whØtheror nót suc dlSp0 res.ults in litigatn. allatlomeys fee"ir\urred by BPWEST
COAST PRODUCTS LLC for consult or repreenltion wIth resPeclto suCh dispute, whether or not BP WEST COAST PRODUCTS LLC i$madea party to sucbdispu, shat be deemechn additional expense of

th perOrmnC8 by BP WEST COAST PRODUCTS I.LC of. this Agreemet, ro which acSillnalexpenses shall be reimbured from Ihe Consb'~c:ion Loan Proceeds.. To the exlert ~t funds remaining in the

partes and severlly, to BPWESTCQAT PRODUCTS lLCfor reimbursementofsuClexpen!el 8.ndshanpay
Cortrctionloan .Proceds 8relosuffcie~1 so 10 relmbu/'' BP We;STCQAST PRODUCTS. LLC, ¡II same upn derrrr.Thamountofsuch e,xpenseßhall be fjeemed.1iquldated upOn demand for Bf WEST the making. of such COAST PRODUCTS lLC. 'Contrctor does not dispute the rihts afordd to BP

signator hereto. (exc;ùdIng Contrac)otrthenBP WESTCQAST PR()DÛCT~LLC, shaiibê liable, jointly

Wesl Coasl Proi.ls, LlC in \his paagraph 10 the extnt Iteyare nol souhifrrm COntractor (aside from the

a;\CONI'f~DIISBOC.doc 2 O~t-1JO" ."''21i1.M.t..-- "~I"'-- ..i.hu""-..,,' ""08 "''''!..-(,1,. 4'T.,i

152

Case 5:07-cv-04808-JF
May 14 07 12:08p

Document 7-6

Filed 10/18/2007
5532-2578

Page 4 of 4
p."
by

Fortu.ne-alliff¡ons.or
Coast

Conatrction Lon Funds). Owneralfrms thatanyassesmenl agalrrtltorthe c:nstructlon Lon Funds BP West

Contractr as se fort In the Pnme Cotract

ProuCt as set for.ín \his paragraph wil not alter Owers panl obligations to
other data referred

13 DATA. The name or the 'Owner" and 'Contractr' and.

to ebOlieare âs rollows:

(a) OWNER.

STTN ENTERPRISE, I NC
631 San FeHce Road

Hollister. CA 65023
(b)

CONTRACTOR:

FORTUNE,RA TUFF GENERAL 'CONTRACTORS INC,
P. O. Box 26944

Fresno CA 93729
(e) JOB SITE/FACIlITY#
1182-461 - 631 San Felloe Road

Holiister CA . 95023 ((I) IMPROVa.IENTS:
Rebrnd IC-Store &. Gas Remodel)

¡DO NOT INCLUDE EXPENSES FOR CAR WASHI

(e) LOAN PROCEEDS: (See #4)

am/om Loan - S150M/Gas - $250M

(f) CONTRACT PRICE:
(g) PARTIES AUTHORIZED TO SIGN VOUCHERS:

Signature
Name

\ .l"

Signature ,/
Name ALLEN FORTUI'E ,,/
Signature ~~ -- "
FORTUN£RATLFFGEi.E~mAACTORS. iN::

Name ./
FOR1""I".RATUFF GENERR CONTRACTORS.

CONSTRUCTION LOANPROCE:EDS MAY NOT BE SUFfICIENT TO .COVER ALL eXPENSES'FOR THE IMPROVENENTS,OR ON T E JOB SITE,

/
3

INC

~

Dalèd: - ..":
By' Sayed Faqulryan

BP WEST COAST PRODUCTS LLC

Facilit # 82461 '

ø~Fortune
./'. Allen Jo.nes

,,/

STT ENTERPRISES, INC. - "OWNER'

BP WEST COAST PRODUCTS, a Delaware limitecllìabilìt company

.,~
153

/FORTUNE-RATLIFF GENERL
CONTTOR$. INC. - 'CONTRACTOR'

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