Free Notice (Other) - District Court of California - California

Case 5:07-cv-04808-JF

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EXHIBIT I TO SECOND AMENDED COMPLAINT

180

Case 5:07-cv-04808-JF
RECORDING P.EQUESTED BY

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1111111/111111111111111111111111

FlhST AivER~AN TITLE

2007-0003267
Recortt!d
Official Rt!cords

I

Wo8- ~1¿)~ldq
R....ording Requested and \\'iii'n Kecmded Return To:
IIi' '\..~i CU,ISI Products LLC
~ ( :(:nnerpoinic Dr., LPR 4-243

I RE FEE
I I I I I I

7B.1I

JtE PA IDIUZ
Ci erk-Recordt!r

County of San Benito

1.1 I'aliiia, r:\ 90ú23-I066
..\ 1111. l);¡iiid 1. Rolf

Ø2:0I 11r-207 I Pagt! 1 of æ

I OS

hhl.i\i\~: iQ461!SCDB65975
6.' I SUlI r~lipe Road

k(~r, (~VJy°PJ. 70 ~Jr;t.
Space Above ('or Rl'Corucr's Use Orlly

~'51ltl, VT' (ÎoU47ÄIa£

CONSENT TO E~CU:\BRANCE OF TENANT'S INTEREST

II II:: CONSENT TO ENCUMBRANCE OF TENANT'S INTEREST ("Consent"). dated as of /J(¡ rc J.,

21)11'. i,; made by A V A Global Enterprise, LLC., a California limited liability company ("Landlord") in favor of BP \\ I~~T COAST PRODCCTS LLC. a Delaware limited liability company ("Lender").
Recitals

A. Landlord is the owner uf that certain real property locaied in the City of Hollister, Counny of San
13,'1111"'. SI::ite 0'- Caliiornia. more particularly described in Exhibit "A" anached hereto (the "Real Property").

B. Landlord and STTN Enterprise. Inc., a Califurnia corporation ("Tenant") previousJy entered intQ a !è: t iiiiid lease dated January 200) with respect (0 the Real Property ("Lease"). A "Memorandum of Lease" shall be
r~;'\\r\kd 111 iln.: San Benito County Ottcial Records.
C. T cnant intends to construct a gasoline station and convenience store on the Real Property or make

certain alteratiiins to an existing gasoline station and convenience store. In connection therewith, T eryant wil be L'nh:ring inno certain agreements with Lender to sell AReO-branded gasoline at the gasoline station and operate the ctiiiq:iiienc.. stOn: as an am/pm mini market franchise. The Real Property as improved with any existing or future

iiiprt\\':nnems ihereon shall be referred to herein as the "Property."

U Tenam has requested that Lender make a luan (the "Luan") to Tenant in the amount olup to Foiir
Ii IIndrcJ and ~oi 1 00 Dollars ($400,000.00) in connection with such construction or renovation. The Loan shall be si',:iir;:d by (1m certain Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing dated as of .... \:1\ dale herewith ("Leasehold :vortgage"), which Leasehold Mortgage shall encumber Tenant's leasehold estate in

ii,. I'l11pcrry. The Leasehold Morrgage also encumbers Tenant's personal property, including, but not limited to. all
rrlcr,:lulildise. equipment. fixtures. furnishings, furniture, machinery. inventory, tools and other property of Tenant

Iii,'aii:d at or used iii connection with Tenant's operations upon the Property, together with all additions,
subsiiiutions. replacements and improvemenrs to the same, whether now owned or hereafter acquired and the
prrl\:c:eLl~ ,IIÙ products theleof (collectively. the "Personal Property"),
I: .

Tenant has n:qucsted that Landlord execute and deliver this Consent 10 Lender as a condition to

111,' I.naii. ..~I\:,'iih"11(

L.andlord a-:knowledges that Lender would nut make the Loan to Tenant in ¡he absence of (his

Agreement

\;( 1\\'. lH EREFORE. Landlord agrees as follows:
I Consenn to Leasehold Mort~al!e. Landlord hereby consents 10 the recurding of the Memorandum
u,- ! .~a:;e and I\) ihe encumbrance of

Tenant's interest in the Lease and the Propert by means of the recording of the

I; c,' \.10)1 rgag!:

THis document signed in Counterpart
.\2JI" t tiil:;~nl h' b:ii:unnhranee of Tenant's Inrcrest vl.doe

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JJ &;resentations and Warranties of Landlord. Landlord hereby represents and warrants to Lender

ihat: (J) Landlord is the owner of the Real Property, (b) there are no murtgages and deeds of trust encumbering
I.;indlurd's interest in the Real Property except as otherwise disclosed on Exhibit B, (c) the Lease is unmodified 1l:.'':~P( as shown on Exhibit C) and in full force and effect, and (d) to the best knowledge of Landlord, neitlit:r Tcnanll10r Landlord is in default under any of the terms, covenanls or conditions contained in the Lease nor has any
l:\'l:11I uccurred which would, with the passage of time, or the giving of notice, or both, constitUte a default under any ot' 111(: ltrms. i:venants or conditions contained in the Lease.

~, Amendments. Unless Lender otherwise consents in writing, such consent not to be unreasonably
\\IIIIJJt'd ur delayi:d, (a) the Lease shall not be amended or otherwise modified, and (b) except as otherwise provided
!I\ .'i,., 111m :i ht'IO\~. the Lease shall 110t be cancel1ed. ierminated or surrendered prior to the expiration of the tcrm

illi'ii:ol
4, Lender's RilJht to Receive Notices, Landlord shall use its best efforts to mail or deliver to Lender

I at ihe address set forth in Section IJ below) a duplicate copy of any and all notices (individually, a "Delauli
NOllce"lwhich La.ndlord may from time to time give to or serve upon Tenant pursuant to the provisions of

the Lease.

Jiid sUl.h copy should be mailed or delivered to Lender simultaneously with the mailing or delivery of the same 10

Ten;ini .

.; Condiiions on Termination after Tenant's Default. 1fT tnant shall default under the Lease or reject

!ii\' l.tJSI' in ~ proceeding under II U.S.c. or if any other event shall occur that would permit Landlord 10 terminate
1111' L,';i~,' (ur ~i:I.i:pl a surrcndi:r or termination uf the Lease by Tenant) ur exercise any othcr rights or remedi~s

lIll,kl the Ltase (any sUl.h defauli. rejection, or other even! being refelTed to herein as a "Tenant Default") and
I ,'nani shall lail lU cure such Tenant DefauLt witllin any applicable grace period provided in the Lease. Landlord
;1~lC:CS ¡hai l.Jndlord shall not terminate or accept a surrender of the Lease or otherwise enforce any of its rights or

n.:iieJies under the Lease as a result of such Tenant Default unless (a) Lender shaH have received written notice of
,;\I1.11 Tenant Default. and (b) Lender shal1 have failed to rcmedy such default or acquire Tenant's leasehold estate or

commence foreclosure or other appropriate proceedings in the natUre thereof. all as set fort in, and within the time
spi:e i lied by, Section 7 below,
(,. Lender's Riidii to Perform on Behalf of Tenant. Lender shall have the right, bul not the:

ollligaiion. al Jny iime prior to termination of the Lease and without payment or any penalty, to pay alJ of the rents

,iii.: uiider' ihc Least:. tu d'fel.l any insiirance. to pay any taxes and assessments, to make any repairs and
1111110\ CI1Cnls. and 10 do any act or thing which may be necessary and proper to be done in the perforrrnce and

..,h,;~r\'¡¡nce or Tenant's obligations under the Lease to prevent termination of the Lease. All payments so madi: and ;;ii IhiiigS so doiie and performed by Lender shall be as effective to prevent a termination of the Lease as rhe same
\\iiuld IIave been if made. done. and performed by Ti:nant instead of

by Lender.

i. Lender's Right to Cure Tenant's DefaullS. Ifany Tenant Default occurs, and if the Tenant Default

i~ ,ueh thai possession of the Property may be reasonably necessary to remedy the Tenant Default,. Lender shall

ha\'c until th.. tcnth (10th) day atier expiration of the applicable cure period specified in the Lease or in any Default !\(\(ii:c (whichever is longer) within which to remedy such Tenant Default, provided that (a) Lender shall have fully cured any default in the payment of any monetary obligations of Tenant under the Lease within such ten-( 10) day p,'riinl and shall continue to pay currently such monetary obligations as and when the same are due and (b) Lender
shall h.I\'': acquired tenant's leasehuld estate created by the Lease or commenced foreclosure or other apprupriate
pr,i~"~cdings in ihe nature thereof within such period, ur prior thereto, and is diligently prosecuiing any such

pl¡),'.:ediigs, All rrghi of Landlord to terminate the Lease as the result of the occurrence of any such Tenant Default SIIJII be subject 10. and conditioned upon. Landlord first giving Lender a written notice of any such Tenant Detaul( aiid Li:\1ler failing to remedy such default or acquin: Tenant's leasehold estate created by the Lease or cunmCnce
fiii ci-osurt' ur oilli.r appropriate proceedings in the nature thereof as set forth in and the within times specified by ihi,; Sei:rioii 7.
S, Ttmant Defaulis Which Cannot Be Remedied. Any Tenant Default under the Lease which in the

I\;Uul'~ thereof I.annot be remedied by Li:nder shall be deemed to be remedied if (a) within ten (10) days after ~'(pilaiiiin of the applicable cure period spccified in ihe Lease or in any notice of Tenant Default (whichever is

h)iig\'T). or prinr thereiu, Lerider shall have acquired Tenann's leasehold estate created hereby or shall have

~~-'" I C"n~cniio i:ncumbram:c orlcminr's Intercsi vl,doe

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~
cniinnl'nced ~nd is diligently prusecuting foreclosure or orner appropriate proceedings in the nature (hereof; (b) ¡,c'IHler shall have tully cured any default in the payment of any monetary obligations of Tenant under the Lease
whidi du not require possession of the Propert; and shall continue to pay currently such monetary obligations as
aiid wht:iiihe same are due and (c) after gaining possession of

the Property, Lender performs aU other obligations of

l-,'11.111I lindeI' ihe Lease as and when the same are due.
l), Tollinl! of Foreclosure Time Periods. If Lender is prohibited by any process or injunction issued

lv,, :iny coun or by reason of any action by any court having jurisdiction of any bankrptcy or insolvency proceeding

iiwnh'iiig Tenant from commencing or prosecuting foreclosure or other appropriate proceedings iii the nature illi:reot: the time periods specified in Sections 7 and 8 above for correncing or prosecuting such foreclosure or , nnlli:r appropnate proceedings shall be extended for the period or such prohibition. However, Lender must have
lully curt:d any default in the paymenn of any monetary obligations of Tenant under the Lease and shall continue to
pay ,:uITently such monetary obligations as and when the same fall due.
10, Nondisturbance of Lender's Possession: Lender's Liabilitv and Rights. Foreclosure of a

I.:a',ehold Mungage, or ilny sillt: thereunder, wht:ther by judicial proceedings or by virtue of any power contained in ille' Li:asehold Morrgage, ur any conveyance of the leasehold estate created by the Lease from Tenanl to Lender

Ihrl1ugll, or in lieu of. foreclosure or other appropriate proceedings in the nature thereof, shall not require (he consent
iil. Landlurù ur constitute a breach of any provision of or a default under the Lease. Upon such foreclosure, sale. or (lJll\'cyance. Landlord shall recognize Lender. or any other foreclosure sale purchaser. as tenant under the Lease. If i',:nder becomt:s the tcnant under the Lease. (a) Lender shall have the same rights as Tenant with respect to any

uiii',xa;:ised exlension options. rights of tirst refusal, rights of lirst offer or purchase options contained in the Lease.: (h) I.ender shall be personaUy liable for the obligations of Tenant under the Lease only for the period of time thai
I..:iide'r remains tenant thereunder; and tc) Lendcr shall have the right to assign lhe Lease to a nominee or assignee

n;' Li:nder. subject to Landlord's approval, which shalJ not be unreasonably withheld or delayed, without Lender a,,;uiiing ¡he obligations of Tenant under the Lease. If Lender subsequently assigns or transfers its interest under thi' Lease after acquiring the same by foreclosure or deed in lieu of foreclosure, and in connection with any such
as:iignnnem or transfer Lender iakes back a mortgage or deed ofirst encumbering such leasehold interest to secure a

portion of (he purchase price given to Lender for such assignmeni or iransfe", then such mortgage or deed of trust ,;hall be: considered a Leasehold Mortgage as contemplated under this Section \0 and any other provisions of this
Cl1nScnl Intended for the benetit or Lender.

(a)

Lender

\ I. Ri~h\s in Personal Propert. Landlord acknowledges and agrees that all Personal Property of

r~I1.lIit \\hrihe:r ur not affixed to the Propert, and notwithstanding any Lease provisions 10 the euntrary. shall
i\'iii~in persunal property and shall not be subject to any lien, ccaim or other interest of Landlord. Landlord consents

lu the installation of the Personal Property on the Property, agrees that Lender may do to and with the Personal I'nipi:rry any or all of the acts below cnumerated, and grants Lender a right, as set forth below, to enter into ptls~i:ssion of the Property to do any or aU of the following (the "Permtted Actions") with respect to the Personal Prupcrry: assemble, have appraised, display, sever, remove, maintain. prepare for sale or lease, advertise, inspect,
repair. kase. transfer. and/or selJ (at public auction or private sale). Lender shall have the right to enter into and to

",I.upy the Property, for the purposes described above, for an actual occupancy period of up to one hundred twenty
iIa'''~ (ai L.ender's discretion), provided lender has cured any monetary defaults under the Lease as provided above 111 :-ei"IIUnS 7(a) and 8(b). following the laier of: (a) Landlord placing Lender in possession of the Propert; and (b)
aO,Llldonment or surrender of the Propert by Tenann, whether volunnary or involuntary. Landlord shall be

l~ll1lbiiscd for. or Lender shall cause to be repaired, at iis expense, all physical damage to the Propert caused by
iill: rc'lToval of the Persunal Property, Landlord acknowledges that at any time prior to Landlord placing Lender in

Pl1Ssi's,¡iiin of ihe Properry, or abandonmeni of or surrender of the Propcrty by Tenant, Lender may take any or all of
ihe' Pt'rlnil1cd .",eiions subject only 10 Lender's agreements with Tenant.

12, Notices. Any notice required or penntted to be given 10 aiiy party under this Agreement shall be iii \\ rllllg and shall be given by (i) facsimile transmission, (íi) certified mail return receipt requested. or (iii) hand ddi\'i:\'y, addrcssed as follows:

3

~:.:(\ I \.lmSCI1! i., Encumbrance ol Tenant's Inlcrcsl v I.doc

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~
(a')

i t to Landlord:

A V A Global Enterprise, LLC,

63 i San Felipe Rd. Hollister. California 95023 Attcntion: I'azim M.N, Faquiryan
Toan To Tao To

Sayed M.N. Faquiryan
raLsimik No.:

(b) -

i r 10 Lender:

BP West Coast Producis LLC 4 Centerpointc: Drive
A

La Palma. California 90623-1066 tI.:ntion: Site Acquisition Manager Facsimile No.: 714-670-5178

Such iiolIces sh¡¡11 be deenlt:d receivLd (i) upon delivery, if delivered by hand or by facsimile tTansmission (with ,'il\llilll\aiion i..f n:ceipt), U! (ii) three days alter having been deposited in the U.S. mail, postage prepaid, if maikd,
,-\I\y rarty nnay change its address for notice hereunder by notice given as provided above.
i:\ Counterpart, This Consent may be c:xccuted in any number of countc:rparts, each of which shall

(OIlSiiriile one originaL. but all such counterparrs taken together shall constitute one and ¡he same instTumenl.
14,

Termnation of this Consent. This Consent shall automatically terminate upon full repayment uf

¡,cian

15 Successors and Assil!ns, This Consent shalJ inure to the benefit of anù be binding on the parties
hi:rci" and ihc!r respectivc StllTCSSOrs and assigns,

16, GovLminl! Law. This Consent shall be governed by and construed in accordance with ihe laws of
11ll ::lat,' ntCalitomia.
i i, Entire Agreement. This Consent contains all of the agreements and understandings between the
panic:, with n:spcct to the subject matter of this Consent. All prior oral or wrtten promises, representations,

"gre~ments or understandings. express or implied, in conncction with the subject matter of this Consent arc

c;.pn:ssly mcrged herein and superscded hereby. In the event of any conflict between the terms and conditioiis
(oiiiained iii this Consent and the terms and conditions contained in the Lcase, the terms and conditions contained iii
iii" Ci)ns~nn ~haii prcvail.

If¡, Allornev's Fees, If any lawsuit. reference or arbilration is commenced which arises out of or

idal~, In IhlS Cl)nsenn. the prevailing. parry shall be entitled to recover from the other party such sums as the COiirt. i,'i'~,,-: Dr ;¡rbirator m;¡y adjudge to be reasonable attorneys' fecs in such action. in addition to costs and expenses
,,1111:1 \li~i: a\liiwed hi' law,
1'\ W(T!\ESS WHEREOF, the parties have executed this Consenn as of

the date first written above.

SIGNATURES ON FOLLOWING PAGE

4
:\~~(, i C¡)I1~mIIO Encunnbmnce of Tenant's Imerest v I

,doc

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)'
"I'\\IH.OIW"
:\VA (jLOBAL ENTERPRISE. LLC.,
;1 l. a I i torni¡¡ corpuration

I3v'

Sayed \1,:-. Faquiryan

lJ :.

i' "~ ì -~ " vr
TaD Tt,

,~
l"ù;JI1Tu-

~~:t

,),1. .., --_0',_.,,-

Ih:

~;¡ycd M,N. Fa iryan

..~~~

-\( ¡/(EED A~D ACCEPTED ßY:

'1I'N:\::T"
STTN ENTERPRISE, INC., ;¡ t ";¡li!l1rnia corporation

1\'..

Ij,~~
S..yed M.N. F;;qiiiryan S.:netary and Treasun:r
"i r\.f)F.K"

Hf' WI::)T COAST PRODUCTS LLC, ,\ 1'h:I;;warl! limited liability company

fh,

,j..:T\.1. (~ar);""-'----\. II:.. Pn:sideni

,~~,,! 1,',)IS~nl IL' Encul1hrancc uf T ~11;;nl'5 Inlcrcsi vl,due

5

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lp
Landlord's Lender's AC7reemenn

...._,-_ß _.- a ~ ~ .. 'J-~ .__("Landlord's L.:nder"), together
',\ 1111 :ill liS Sllrl=cssors and assigns and together wiih any pa~ obtains ritlc to the Real Properry by means ora IÙri'cløsurc. a deed in lieu of foreclosure, or otherwise, hereby agree that upon obtaining title to the Real Properry illal ( i i aiiy and a II of such parries obtaining title to the R.:al Property shall be bound by all of the terms, covenants, ';IJIJii ioiis and agreements cuntained in this Consent as if such party wert: the Landlord hereunder and (ii) upon

Lemki or a successor or assign of Lendcr obtaining Tenant's interest in the Lease, by means of foreclosure, an assignment by Tenant in lieu of foreclosure, a new lease being entered into, or otherwise. that Lender and Lenders' parti.:ipants and their successors and assigns shall succeed to the Tenant's interest in that certain Subordination, \:,iii-I)isiurhanrc and Attnrnnnenn Agreement executed between Landlord's Lender and Tenant connemporaneously II.:r,~wi(h as i r Lender were the original tenant under such Agreement. The terms of such Subordination, NonI Jlslurh¡¡lll.e and Altorrnnen( Agrcement shall not he amended or lIildiffed without Lender's prior written consent.
"LANDLORD'S LENDER"

~\~

By:

lis:

(Printed Name and Title)

~2.ic" Consem 10 Encumbrance ofTenanl 's Intercst v I.doc

6

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1
ACKNOWLEDGMENT
~iaic ,11' California
(""1111"- or

~ #~¿h

,

, ,..' personally known to me (or proved to mc
011 rll~ oasiS' ¡;atisfac!oryevidence) b e per (5) whose name(s) is~ subscribed to the within instrument

. ~)ol#" ~..~\jc. j~l1--' personally appeared

Jilt! ;Jl.know!edged to me that he/~y executed ihe sailc in his/Rilr/their authorized capacity(ies), and that by
hi.. It.: i 'tll~ii signalun:( s) Oil the instrunnent the person(s), or the entity upon behal r of which ihe pcrson(s) acted. ,'\i'.:iii.:d ihc InSlnlnneiit.

\I

I

ISI:SS my hand aiiù ottcial seaL.

~~~2_::=-.":=-" "~(",I~llfflUt:). -,. - '

~?

-.
ACKNOWLEDGMENT

:-IJI.. "i-Calil\)mi;;

,

('"tll1\' i)f "'._~. Ý7

6/U1o

~~fi

R..b\'C-

, personally appeared

, /.' , personally known to me (or proved \0 me
1111 ihe: basi 0 satisfactorye iden to be e personCs) whose name(s) is/~ubscribed to the within instrument ¡¡lid adinowledged to me that he~y executed the same in hi:¡!kBr'tkeir authorized capacity(ies), and that by his hdlReU signature(s) on the instrument the personCs). or the entity upon behalf of which the person(s) acted,
t\,'nii~d the instnimcnt.

\\,1 r:-ESS Ily IIand and uffcial seaL.

-~ ~-'~d- . -~ - "",,"
.. 'r. ", I l;"i~I1;lIure) ---".C'''

-

- -

- -

_8 MvCc.EEJu 13. 3D ~ ~~61 - ..-Nota Pu - Calfo
Sata CI Couty

7

~~"!!l ':\inscni to Encumbrance nrTcmini's Iniercst vl.doe

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ALL-PURPOSE ACKNOWLEDGMENT

i

fVo\~'o\ ir.
On

before me,
SIGNë~(S)

personally appeared
~pcrsoJ1aiiy known to me

- OR -

o 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 h6hey executed ihe same in hi~heir authorized

1~' Commison' \49476\ ;;

.. _.. - ..MINA FAQUIRAN .&r - - .. _....

capaciiy(ies), and that by hi~their
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the

i -.; 'Notar Publ. colrom s

My Co EE.u \3. i ----------------- ( Sato Ciao COl:m J

person(s) acted, executed the instrument.

~fflciai seaL.
,,' '."' ";~~Y:~;¡GN"ruME

--

" OPTIONAL INFORMATION
Thi' information below is not required by law, However. ii could prevent fraudulent aiiachment of this acknowledgment 10 an unauihorized document.
CAPACITY CLAMED BY SIGNER (PRINCIPAL)
o INDIVIDUAL o CORPORATE OFFICER
TITLE OR TYPE OF DOCUMENT
- _.. - - "-_. -TiLE;$'i

DESCRIPTION OF ATTACHED DOCUMENT

o r..\RTNERiS¡

o .-nORNEY.IN-FACT
o TRUSTEEiS'¡
o (iIJ,\RDIAN/C'ONSERVATOR

NUMBER OF PAGES

DATE OF DOCUMENT

o OTHER: -

-.__. ---_. -- .._---~. .~._._--sii;NER IS RF-PRESENTING:
'.''11 iii' 1'\ M~()"'I~IOR r:i.lTrYI1!:~1

OTHER

RIGHT THUMBPRINT OF SIGNER

l
'E '~

.c
§

a.

~
ã

- -_.-._.

;;
VALLEY-SIERRA, ROO.362.3369

,\1'.- ,\I\)

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ALL.

PURPOSE ACKNOWLEDGMENT

9

"'.h

lss .'
On : æ before me.
personally

appeared --/~ÁI1' / c-;

,¿ /(~~~ . -I
SIONi;(SI

;; , 7 ~ N't~iO

/ I' evidence to be the person(s) whose name(s)
iss subscribed to the within instrument and

~ersonaiiy known to me - OR - 0 proved to me on the basis of satisfactory

acknowledged to me that he/"I.../theyexecuted

~~- :~~ - ::~~~?=:l~ r
i .. Notay Pu . C~om Sota cc CQ\ty

the same in his/her/H+r authorized

capaciiy(ies), and that by his,ler,ltbe.
signatures(s) on the instrument the person(s),
or the entity upon behalf of which the

MyCa 1~ZX

person(s) acted, executed the instrument.

WITNESS my hand and offcial seaL.

~ , ~-- 'SIO~E

, OPTIONAL INFORMATION
CAPACITY CLAED BY SIGNER (PRINCIPAL)

~ ~~ -TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
DATE OF DOCUMENT

The information below is not required by law. However, it could prevent fraudulent attachment of this acknowledg.menlto an unauthorized document.

DESCRIPTION OF ATTACHED DOCUMENT

C INDivioL.AL
C CORPORATE OFFICER
_.. -_. 0-

I1TLF.fS.

C P,\RTNERISi

o ATTORNEY.IN-FACT
o TRl;STEEiSi

o (ì\J,\RDIAN/CONSERVATOR

o OTHER:

----- -~
OTHER

SIGNER IS REPRESENTING:
""''IE OF I'r.R~t)i-,sl OR I!NTlTYIIES\

RIGHT THUMBPRINT OF SIGNER

1! i: '&.

~
Õ

5
-:
c.

:\p.' ~/'N

VAUY-SIERR. 80362-3369

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10
i.:XH1BlT "A"
Legal Description of Real Property

i iii~ L\t'D KHERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF HOLLISTER, COUNTY OF
-;,.\ 'J I¡E~iTC), STA TE OF CALIFORNIA AND is DESCRfBED AS FOLLOWS:
ALL TH." T REAL A1"D CERTAIN PROPERTY LOCATED IN THE CiTY Or HOLLISTER, COUNTY OF SAN BE\ITO. STATE OF CAUFORNIA, BEING A PORTION OF PARCEL i AS SAID PARCEL is SHOWN L:POS THE PARCEL MAP RECORDED N BOOK 7 OF PARCEL MAPS AT PAGE 59, OFFICIAL RECORDS, A:\D HEI:.G MORE PARTICULARLY DESCRIBED AS FOLLOWS:
("OI\1MENCING AT THE SOL:THWESTERL Y CORNER OF PARCEL I AS SHOWN UPON SAID MAP;

TlII::'('E 1\ 2 DEGREES 06 MINUTES 2.0 SECONDS E. 183,48 FEET ALONG THE RIGHT OF WA Y OF SAN ITIIIF ROAf) (STATE HWY, 156) TO THE TRLE POINT OF BEGINN1NG;

llll~!'((E FROM SAID TKUE POINT OF BEGINNI?\G, CONTINülNG ALONG SAID RIGHT OF WA y, N 2
j1l\ïREES ()ó MINUTES 20 SECONDS E, 176.48;

TIIE;\CE 1'ORTHEASTERLY ON THE ARC Of A TANGENT CURVE TO THE RIGHT CONCAVE TO THE SOl.;THEAST. HA VING A RADIUS OF 20.00 FEET. THROUGH A CENTRAL ANGLE OF 90 DEGREES 28 \1I::UTES 10 SECONDS. FOR AN ARC LENGTH OF 31.8 FEET TO A PorNT ON THE SOLITHERL Y KIC.ilfl Of WAY LINE OF CHAPPELL ROAD,
TI i I:~CE EASTERLY A LO~G SA ID RIGHT OF WAY LINE. S 87 DEGREES 25 MINUTES 30 SECONDS E I.."~'¡ FEET,
TIII:NCE I.EA VI;.Cì SAID LINE. S 2. DEGREES 06 MIN1;TES 20 SECOI"DS W, 222,81 FEET;
lH E!\C.ï: N ¡): DEGREES 25 MINUTES i \ SECONDS \V, 90,03 FEET:

I HENCt: j' 7c) DEGREES 10 MINUTES 29 SECONDS W. 60.93 FEET:

THE::CE N 41 DEGREES 33 MINUTES 35 SECONDS W, 24,26 FEET TO THE TRUE POINT Of 8E(jiN)\~G,
,:"1'-' i)~ 1.\eJo.04()

X2~(iI CI1ISCnllO Encunnbr~nce ofTenani's Interest v I.doe

8

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\ \

EXHIBIT "B"
Existing Mortgages and Deeds of

Trust Encumbering the Real Property

Oiie Onl~":

Tvpe.
'\IIIUIlIIl:

Blanket Encumbrance
$ i .925,000.00

Firili.
ki:(unlt:ù: lh\c' '\Ù,

Omni Finan¡;ial

)AVi\I04.

~ 2.1" I (\1nSenl 113 Encumbrance af Tciiani's Imerest v I,doe

9

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Iv
EXHIBIT "C"

Modilcations to Lease

None

1 ()
~:..(\; ':onsel\ 1(\ Encumbrance of

Tenant's Interest vl.doc

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\ '?
Recording Requested and

When Recorded Return To:

BP West Coast Products LLC 4 Ceinerpoinie Dr., LPR 4-243 La Palma, CA 90623- i 066 Attn. Diinitd J. Rolf Faciliiy: 82461/SCDB65975 631 San Felipe Road
~ f Hollister, CA 95035 , ) 7ö 1i...: 9 'J¡'
Spa Above For Recorder's Use Only

L LU/f lIt/or ~ "'''~ 1J-f

CONSENT TO ENCUMBRANCE OF TENANT'S INTEREST
THIS CONSENT TO ENCUMBRANCE OF TENANT'S INTEREST ("Consent"), dated as of .1cÁ .1

2007, is made by A V A Global Enterprise, LLC., a California limited liability company ("Landlord") in favor of BP WEST COAST PRODUCTS LLC, a Delaware limited liability company ("Lender").
Recitals

A. Landlord is the owner of that certain real propert located in the City of HuIJister, County of San
(kniii'. St¡¡l~ ufCalifornia, more particularly described in Exhibit "A" attached hereto (the "Real Propert").

gruund lease

(3, Landlord and STTN Enterprise, Inc., a California corporation ("Tenant") previously entered into a dated January 2005 with respect to the Real Propert ("Lease"). A "Memorandum of Lease" shall be

recorded in ihe San Benito County Offcial Records,

C. Tenant intends to construct a gasoline station and convenience store on the Real Propert or make certain alterations to an ex.isting gasoline station and convenience 'store. In connection therewith, Tenant will be
entcring into certin agreements with Lender to sell ARCO-braded gasoline at the gasoline station

convc;,iencc store as an amlpm mini market fTanchise. The Real Propert as improved with any existing or future improvemenns thereon shall be referred to herein as the "Propert."

and operate the

D. Tenant has requested that Lender make a loan (the "Loan") to Tenant in the amount uf up to Four
Hundred and Noll 00 Dollars ($400,000.00) in connection with such constrction or renovation. The Loan shall be

secured by that certain Deed of Trust with Assigmnent of Rents, Security Agreement and Fixture Filing dated as of even date herewith ("Leasehold Mortgage"), which Leasehold Mongage shall encumber Tenant's leasehold estate in
ihe Propert. The Leasehold Mongage also encumbers Tenant's personal propeny, including, but not limited to, all

merchandise, equipment, fixtures, fuishings, furniture, machinery, inventory, tools and other propert of Tenant located at or used in connection with Tenant's operations upon the Propert, together with all additions,
substin.iions, replacements and improvements to the same, whether now owned or hereafter acquired and the proceeds and products thereof (collectively, the "Personal Propert"). ' -

E. Tenant has requested that Landlord execute and deliver this Consent to Lender as a condition to (11.: Loan. L¡¡ndlord acknowledges that Lender would not make the Loan to Tenant in the absence of this
Ag,reemenl.

Agreement

NOW, THEREFORE, Landlord agrees as follows:
I, Consent to Leasehold Mortgage, Landlord hereby consents to the recording of the Memorandum

of ¡,ease and to the encumbrance of Tenant's interest in the Lease and the Propert by means of the recording of the
Fee Mortgage.

This document signed in Counterpart

Ml-lhl COII~cl\l to Encumbrance "rTciiann's Intercst vl.doe

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2. Representations and Waranties of Landlord. Landlord hereby represents and warants to Lender

that: (a) Landlord is the owner of the Real Propert, (b) there are no mortgages and deeds of trst encumbering
L¡¡ndlord's interest in the Real Propert except as otherwise disclosed on Exhibit B. (c) the Lease is unmodified (except as shown on Exhibit C) and in full force and effect, and (d) to the best knowledge of Landlord, neither Tenant nor Landlord is in default under any of the terms, covenants or conditions contained in the Lease nor has any event occufTed which would, with the passage of time, or the giving of notice, or both, constitute a default under any of ihe terms, covenants or conditions contained in the Lease.

3. Amendments. Unless Lender otherwise consents in writing, such consent not to be unreasonably withheld or delayed, (a) the Lease shall not be amended or otherwise modified, and (b) except as otherwise provided in S\:i:tion 5 below, the Lease shall not be cancelled, terminated or surrendered prior to the expiration of the term ihereof.
4. Lender's Right to Receive Notices. Landlord shall use its best efforts to mail or deliver to Lender

(at the address set forth in Section 13 below) a duplicate copy of any and all notices (individually, a "Default
Notice")which Landlord may from time to time give to or serve upon Tenant pursuant to the provisions of

the Lease,

and such copy should be mailed or delivered to Lender simultaneously with the mailing or delivery of the same to
Tenant.
5, Conditiuns on Termination after Tenant's Default. If Tenant shall default under the Lease or reject

ibe Lease in a proceeding under 11 U.S.C. or if any other event shall occur that would permit Landlord to terminate the Lease (or accept a sUfTender or termination of the Lease by Tenant) or exercise any other rights or remedies under the Lease (any such default, rejection, or other event being referred to herein as a "Tenant Default") and Tenant shall fail to cure such Tenant Default within any applicable grce period provided in the Lease, Landlord
agrees that Ladlord shall not terminate or accept a surrender of the Lease or otherwise enforce any of its rights or

remedies under the Lease as a result of such Tenant Default unless (a) Lender shall have received written notice of such Tenant Default, and (b) Lender shall have failed to remedy such default or acquire Tenant's leasehold estate or commcnce foreclosure or other appropriate proceedings in the nature thereof, all as set forth in, and within the time
specified by, Section 7 below,
6, Lendei-'s Right to Perform on Behalf of Tenant. Lender shall have the right, but not the

ubligation. at any time prior to termination of the Lease and without payment of any penalty, to pay all of the rents
due under the Lease, to effect any insurace, to pay any taxes and asessments, to make any repairs and

improvements. and to do any act or thing which may be necessar and proper to be done in the performance and
observance of Tenants obligations under the Lease to prevent termination of

the Lease. All payments so made and
by Lender.

all things so done and performed by Lender shall be as effective to prevent a termination of the Lease as the same
would have been ifmade, done, and performed by Tenant instead of

7, Lender's Right to Cure Tenant's Defaults. If any Tenant Default occur, and if

the Tenant Default

is such that possession of the Propert may be reasonably necessar to remedy the Tenant Default" Lender shall
have until the tenth (J Oth) day after expiration of the applicable cure period specified in the Lease or in any Default Notice (whichever is longer) within which to remedy such Tenant Default, provided that (a) Lender shall have fully
cured any default in the payment of any monetary obligations of Tenant under

the Lease within such teñ (\ 0) day pcriod and shall continue to pay cUlTently such monetary obligations as and when the same are due and (b) Lender shall have acquired tenant's leasehold estate created by the Lease or commenced foreclosure or other appropriate

proceedings in the nature thereof within such period, or prior thereto, and is dilgently prosecuting any such
proceedings. All right of Landlord 10 terminate the Lease as the result of the occurrence of any such Tenant Default shall be subject to, and conditioned upon, Landlord first giving Lender a written,notice of any such Tenant Default and Lcnder failing to remedy such default or acquire Tenant's leasehold estate created by the Lease or commence foreclosure or other appropriate proceedings in the nature thereof as set forth in and the wiihin times specified by ihis Section 7,
8, Tenant Defaults Which Cannot Be Remedied, Any Tenant Default under the Lease which in the

nature thereof cannot be remedied by Lender shall be deemed to be remedied if (a) within ten (10) days after
expiration of the applicable cure period specified in the Lease or in any notice of Tenant Default (whichever is
longen, or prior thereto, Lender shall have acquired Tenant's leasehold estate created hereby or shall have

2
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/'

\~
ClJmmenced and is diligently prosecuting foreclosure or other appropriate proceedings in the nature thereof; (b) Lender shall have fu\1y cured any default in the payment of any monetary obligations of Tenant under the Lease which do not require possession of ihe Propert; and shall continue to pay curently such monetar obligations as
and when the same arc due and (c) after gaining possession of

the Propert, Lender performs all other obligations of

T~nant under the Lease as and when the same are due,
9. Tollng of Foreccosure Time Periods. If Lender is prohibited by any process or injunction issued

by any court or by reason of any action by any court having junsdiction of any bankruptcy or insolvency proceeding

involving Tenant from commencing or prosecuting foreclosure or other appropriate proceedings in the nature thereof, the time periods specified in Sections 7 and 8 above for commencing or prosecuting such foreclosure or other appropriate proceedings shall be extended for the period of such prohibition. However, Lender must have fully cured any default in the payment of any monetary obligations of Tenant under the Lease and shall continue to
pay currently such monetary

'obligations as and when the same fall due,

10, Nondistubance of Lender's Possession: Lender's Liabiltv and Rights. Foreclosure of a

Leasehold Mortgage, or any sale thereunder, whether by judicial proceedings or by virte of any power contained in
¡he Leasehold Mortgage, or any conveyance of the leasehold estate created by the Lease from Tenant to Lender

through. or in lieu of, foreclosure or other appropriate proceedings in the nature thereof, shall not require the consent of Landlord or constitue a breach of any provision of or a default under the Lease. Upon such foreclosure, sale, or conveyance, Landlord shall recognize Lender, or any other foreclosure sale purchaser, as tenant under the Lease. If

Lender becomes ¡he tenant under the Lease, (a) Lender shall have the same rights as Tenant with respect to any
unexercised extension options, rights of first refusal, rights of first otTer or purchase options contained in the Lease.; (b) Lender shall be personally liable for U1e obligations of Tenant under the Lease only for the period of time thaI
L.ender remains tenant thereunder; and (c) Lender shall have the right to assign the Lease to. a nominee 0.1' assignee

of Lender, subject to Landlord's approval, which shall not be uneasonably withheld or delayed, without Lender assuming the obligations o.f Tenant under the Lease. If Lender subseuently assigns 0.1' transfers its interest under the Li:ase after acquiring the sae by fo.reclosure or deed in lieu of foreclosure, and in connection with any such

assignment or transfer Lender takes back a mortgage or deed o.ftrst encumbering such leaehold interest to secure a
portion of the purchase price given to Lender for such assignment or trsfer, then such mortgage or deed, of ITst
shall be considered a Leasehold Mortgage as contemplated under

this Section i 0 and any other provisions of this

Consent intended for the benefit of Lender.' .
(a)

Lender

Ii. Rie.hts in Personal Propert. Landlord acknowledges and agrees that all Personal Propert of

Tenant, whether or not affxed 10 the Propert, and notwithstanding any Lease provisions to the contrar, shall
remain personal propert and shall not be subject to any lien, claim or oU1er interest of Landlord. Landlord consents

to the installation of the Personal Propert on the Propert, agrees that Lender may do to and with the Personal Property any or all of the acts below enumerated, and grants Lender a right, as set fort below, to enter into possession of the Propert to do any or all of the following (the "Permitted Actions") with respect to the Personal Prop.ert: assemble, have appraised, display, sever, remove, maintain, prepare for sale or leas, advertise, inspect,
repair, lease, trasfer, and/or sell (at public auction or private sale). Lender shall have the right to enter into and to
occupy the Propert, for the purpses described above, for an actual occupancy period of up to one hundred twenty

Jays (al Lender's discretion), provided Lender has cured any monetar defaults under the Lee as provided above
in Sections 7(a) and 8(b), following the later of: (a) Ladlord placing Lender in possession of

the Propert; and (b)

abandonment or surrender of the Propert by Tenant, whether voluntary or involuntary. Landlord shall be
reimbursed for, or Lender shall cause to be repaired, at its expense, aii physical damage to the Propert caused by
ihc rem?val of the Personal Propert. Landlord acknowledges that at any time prior to Ladlord placing Lender in possession of ihe Propert, or abandonment of or surrender of the Propert by Tenant, Lender may take any or all of ihe Pennilted Actions subject only to Lender's agreements with Tenant.
. ,,12. Noiices. Any notice required or pennitted to be given

to any part under this Agreement shall be

in -:rrttng and shall be given by (i) facsimile transmission, (ii) cenified mail return receipt requested, or (iii) hand delivery. addressed as follows:

3
Hl'¡61 Consent 10 Encumbrance ofTenllnl.lnierest vl.doc

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, (0
.-

(a)

¡fto Landlord:
A V A Global Enterprise, LLC, 631 San Felipe Rd.

Hollister, California 95023 Attention: Nazim M.N. Faquiryan
Toan To Tao To

Sayed M,N, Faquiryan
Facsimile No.:

(b)

If to Lender:
BP West Coast Products LLC 4 Centerpointe Drive
. La Palma, Caliornia 90623- 1066

Attention:. Site Acquisition Manager Facsimile No.: 714-670-5178

Such notices shall be deemed received (i) upon delivery, if delivered by hand or by facsimile transmission (with
cunfimmation of receipt), or (ii) three days after having been deposited in the U.S. mail, postage prepaid, if mailed.

Any par may change its address for notice hereunder by notice given as provided above.
13. Counterparts. This Consent may be executed in any number of counterpart, each of which shall

l:nstitute one original, but all such counterparts taken together shall constitute one and the same instrument.
14,

Termination of this Consent. This Consent shall automatii;ally terminate upon full repayment of

i.)~11
IS. Successors and Assigns. This Consent shall inure to the benefit of and be binding on the panies

hercto and their respective successors and assigns.

lb. Governing Law. This Consent shall be governed by and construed in accordance with the laws of
ihe Slate of

California.

17. Entire Acreement. This Consenr contains all of the agreements and understandings between the
parties with respect to the subject matter of this Consent. All prior oral or written promises, representations,

agreements or understandings, express or implied, in connection with the subject matter of this Consent are

expressly merged herein and superseded hereby. In, the event of any conflct between the tenns and conditions
contained in this Consent and the tenns and conditions contained in the Lease, the terms and conditions contained in this Consent shall prevaiL.
18. Attornev's Fees. If any lawsuit, reference or arbitration is commenced which arises out of or relates to this Consent, the prevaiing part shall be entitled to recover from the other part such sums as the court, referee or arbitrator may adjudge to be reasonable attorneys' fees in such action, in add.ition to. costs and ex.penses

otherwise allowed by law.
IN WlruESS WHEREOF, the panies have executed this Consent as of

the date first written above.

SIGNATURES ON FOLLOWING PAGE

:\241)1 Consent \0 Encumbrance ilrTt:nanl's (nh:resi vl.dnc

4

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,1
"LANDLORD"
A V A GLOBAL ENTERPRISE. LLC.,

a California corporation

ßy: '.
Sayed M.N. Faquiryan

---

By: ----_., Toan To

Ry:

Tao To

By: --Sayed M.N. Faquiryan

.'\GREED AND ACCEPTED BY:

"TENANT":

STT ENTERPRlSE, INC.. a California corporation
Hy: 1"azim S.M. Faqiiiryan Presidcni/CEO

Ay: ---

Sayed M.N, Faquiryan

Secretary and Treaurer
"LENDER"
BP WEST COAST PRODUCTS LLC,

a Delaware limited liability company

iI:!.J¡' I lons~nn \0 Encumbrance or Tenant's Intcrest v I.doc

5

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\~
Landlord's Lender's Agreement

¥\ \ 0. a \\ t CA ("Landlord's Lender"), together
with al1 its successors and assigns and together with any par which obtains title to the Rea! Propert by means of a foreclosure, a deed in lieu of foreclosure, or otherwise, hereby agree that upon obtaining title to the Real Propert that (i) any and all of such paries obtaining title to the Rea! Propert shall be bound by all of the tenns, covenants, conditions and agreements contained in this Consent as if such par were the Landlord hereunder and (ii) upon Lender or a successor or assign of Lender obtaining Tenant's interest in the Lease, by means of foreclosure, an
assignment by Tenant in lieu of foreclosure, a new lease being entered into, or otherwise, that Lender and Lenders'

participants and their successors and assigns shall succeed to the Tenant's interest in that certin Subordination, Non-Disturbance and Attornment Agreement executed between Landlord's Lender and Tenant contemporaneously herewith as if Lender were the original tenant under such Agreement. The tenns of such Subordination, NonDisturbance and Attornment Agreement shall not be amended or modified without Lender's prior written consent.
"LANDLORD'S LENDER"

'v \f/\
By:

Its:

(Printed Name and Title)

6
X:!--h I tonscnl 10 ":ni:umhrancc of Ten

ant's Interest v I.àoc

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\1
ACKNOWLEDGMENT
Statc of California
County ur

)
)

)

On -_.~t)'7 , before me, .G'll "C, lU ~II 1"P J ÀJi- ~6uC, personally appeared

-- ~ G.lr . , personally known to me (er "raved teime
OR tlle IIasis gf ~::ti¡fj¡stgF"l e. id......t) to be the person~ whose name~ i5i subscribed to the within instrment
and acknowledged to me that he/Sb/t!t executed the same in hisff/t1'ir authorized capacity(~, and that by
his~tllr signatUett on the instrument the person(\, or the entity upon behalf of

which the person(s) acted,

~x.:cuted the instrument,

WITNESS my hand and offcial seaL.

ú.- ~ r' , -.. , ture) ,
ACKNOWLEDGMENT

- CoIS # 1537634 t
l --- Nolary Pu - CaUfom f

l""~-~--"'-----

~- -0r Couty f Q PRIUSMlJH - ~~:.~_~1~2~

Slalc .iiCalifomia

Couniyof
, personally appeared , personally known to me (or 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/tlley executed the same in hislher/their authorized capacity(ies), and that by his/her/their signarure(s) on the instrment the person(s), or the entity upon behalf of which the person(s) acted,
Oii

--. ' . --' before me,

executed the instrument.

WITNESS my hand and offcial seaL.

(Signature)

H246 i Cons.:nt to Encumbrance ollo:nanls Intercst v I.doc

7

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dV
EXHIBIT "A"
Legal Description or Real Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF HOLLISTER, COUNTY OF SAN BENITO, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

ALL TH¡\ T REAL AND CERTAIN PROPERTY LOCATED IN THE CITY OF HOLLISTER, COUNTY OF SAN

BENITO, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL I AS SAID PARCEL iS SHOWN
UPON THE PARCEL MAP RECORDED IN BOOK 7 OF PARCEL MA~S AT PAGE 59, OFFICIAL RECORDS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHWESTERLY CORNER OF PARCEL 1 AS SHOWN UPON SAID MAP;
THENCE N 2 DEGREES 06 MINUTES 20 SECONDS E, 183.48 FEET ALONG THE RJGHT OF WAY OF SAN

rEU PE ROAD (STATE HWY. i 56) TO THE TRUE POINT or BEGINNING;

THENCE FROM SAID TRUE POINT OF BEGINNING, CONTINlINGALONG SAID RIGHT OF WAY, 1' 2
DEGREES 06 MINUTES 20

SECONDS E, 176.48; .

THENCE NORTHEASTERLY ON THE ARC OF A TANGENT CURVE TO

THE RIGHT CONCAVE TO THE SOUTHEAST, HA VTNG A RADIUS OF 20.00 FEET, THROUGH A CENTRAL ANGLE OF 90 DEGREES 28 MINUTES 10 SECONDS, FOR AN ARC LENGTH OF 31.8 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY LINE OF CHAPPELL ROAD.

THENCE EASTERLY ALONG SAID RJGHT OF WAY LINE, S 87 DEGREES 25 MINUTES 30 SECONDS E
146.84 rEEl':

THENCE LEA VING SAID LINE, S 2 DEGREES 06 MINUTES 20 SECONDS W, 222.8 i FEET;

THENCE N 87 DEGREES 25 MINUTES I i SECONDS W, 90.03 FEET;

THENCEN 79 DEGREES 10 MINUTES 29 SECONDS W, 60.93 FEET;

THENCE N 41 DEGREES 33 MINUTES 35 SECONDS W, 24.26 FEET TO THE TRUE POINT OF
BEGINNING.

APN: 051-100-040

8
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;)x
EXHIBIT "8"
Existing Mortgages and Deeds of

Trust Encumbering the Real Property

One Only:
Type:
Amount:

Blanket Encumbrance

$1,925,000.00
Ornni Financial

¡:irrn:
Ri:cordcd:
Doc No.:

3AVAI04

9
K2'¡ól Conscnt to Encumbrance o,.Ti:niint's Intcrest vl.doc

201
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?7J
EXHIBIT "C"

Modifications to Lease

None

10

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EXHIBIT J TO SECOND AMENDED COMPLAINT

203

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FOR VALUE kECEIVED, STT.NENTERPRl~E, INÇ., ,a C3lifom!a: ç9rBOratipn,(hereioafterreferrd to as
"Borrower") herebyptomiscs tp pay:tO 8P' WßstCQ'AST PROOU.CTS LLC, a; DDelaW;i!re limitcdliaaìlity CQmpal1Y

: ..',." "', .,.., '. j

SECURED ,PROMISSORY NOTE (am/pm M\iii Market)

(hereíriafterrefelTéd,.tó as "Li:i1det"),or ótder, On orbcforê ,the principiiLsum of two Hùndred
Twenty Five Th.Øusiud, and Nell 00 Dollars' ($225,000,00) (the '~MaxiituniLo~n A.irount"), .01' so'much of that sum as plus: interest as s.l,eciffed below, 'flUs Note evidènêesa loah may be advanced under this ¡:romissory note C'Now"),

("Loan") (rl1in Lender to Borrwer.
I. This Note, is sectired by a Deed ç¡r Tru~ with,Assig!\ment of FilirtgC"Deed of Trust'~) covering certaiii renl

Rents; Security Agreement and Fii(ture

and pctsonalptoperty, asrherein' described (the "Property"). innayalse

be secured by other collateraL. This Note and the Deedp(Tnntare twO of several Loa/1 Documenis,as defined and designated in that certin Loan Agreement C'Loan Agreemeni' between Lender and Borrower. SOme Qr all of the Loan

Documents, including the Loan Agreemenl, contain provisions for ihe acceleration 'of the maturity of this Note.
Capitalized terms Used herein have the meanings assigned 10 them in

the Loan Agreement, unlessoiherwise defined

herein

bear interest at a fixed rate of inierest equal to Four and payable in arrears' on 'a such date during the t~rm of

2. The'unpaid principal balance of this Note ITom day to day outStanding, \vhich is not past due, shall i Interest will be Seventy Five percent. (4:75%) per annum.

annual basis beginning en the First Anniversary Date and 9n eachsucces~ive anniversary of the Loan. I3.arrower shall also make annual principal reduction payments as provided in the

Loan Agreemcnt. PrincipaL and interest are subject' to al1lual forgiveness inacc.ordiince with the (ernis arid conditions set forth in the Loan Agreement,
3. All pàymentsof tlis, Netèsh,¡11 bë made in lawful money ef the United States of America in
immediately

available funds at Lender's offces at 4 Centerpointe Drive,Suite 300, La Pa)ma, CalifonÚa 90623-\066, the holder hereof shaH have de:ignted to Borrower in writing.
Attention: COntr~êt Dealer Loan Administratí6n,or at' such other plàcc or to such account as

4. All principal and"allaccrued,and unpaílj intertstsh¡¡l1 bediieand p.ayable rìolaterthan the date whid::

istweTily (20) years fòl10wingthë B~inessQpcri ba,te e'Maturity Date").
5.. Lendtr sMllriot be real.ired to irilk!: anya:dvimc,i: if that Would cause the outstanding

principal of this

Note to'ëxceed the Maximum Loan AmoUnt.
6.

Borrower may prepay thc' priiicìpal balance efthìs Note,irt whole or in :part, at any time' without

penalty .
7. If Lend,er hIl nc;t received th~,f!lJ\amounl' 'of aiiY the'end of five (5) business ,days after the

payment, othør than the final pr:incipal payment, QY'

date when due', Borrow.ershall pay. a, late ch",~ge to Lender in the amount of

ttve perèent (5%) öf the overdue pay¡ent. InliJidiiiop to; thd'or~going; Borro,wer agrees to pay intereSt on, any and all 'sums,dtte urider this Note from the pilyrëntdue'diitè unti the date fully paid by Boiiower. such intercst.o accrue at a ra.e of intete's! equai to thc"prime råte" (as:teported by the WallStie,ct journal) pfUs two percent (2%) ~r annum but in
no event greater than the maximum

amOunt pêtrìtted,bylaw(thè "DeraultRate")~ '
Note

8. From and aftr máti~ty of tli¡s all swns then due and ppyal)\e under this Nòte, includi.g all outsnding hereun~~r~ shall bearinterest until

(whether upon the Maturity Date, tty acceh:ratioii or otherwisc),

unpaid principal~ accruedìnterestand any other sums ,paid in full at'thc'pefault Rate~ Ca.mpounding pfintcrest may result if.

oUtttading.inter~t hercUiiderai;cnies ìnierest Atthe DefuultRate.

departent should

IO.Ms', ' ' ,
204

i The interest ratèoiirrently. approved forCD'Loans:'is 4.75%'pcr anum butis subject to/change~ The BP tax
be consulted priorttrëach lóií,(:osihg 10 verifythecurrerit intej-ëstrate approved for BPWCP CD

Case 5:07-cv-04808-JF

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9. If any of

the fÒllowing "Everits of Default" occur,

any oblì¡?a1ion Of thê,holder to inlike advancès under
sums afprincipal and

thii¡ Note shaH termiiiate, and at *e holder's opdon, exercisabl,e inits:sole discretion, ,all under this Note

interest

shall become iinmed¡at~ty due, a,nd. payable wHholltnotice ot default, p,reeentment or d~mand for
of nonpayrneni,or dishQnpr. or

payment, próte~tQt notice

other iiotù:es or demaiids of ilny kin9pr çqiiract~r:

(a) Borrower fails to. p(:Tform aiiyoblig..tion under this, NQteto pay principal, interest or other amounts due, and does not cure thät'faih..ri \vilhin five (5) business,days after th~date whcndue; or
(b) document) occurs.

Undcrany or the Loaii Documénts, a default Qr"Event or Default" (as defincd in that

(c)
Prooeeding").

Borrower becomes the subject of any proceding, arising under i i u.$,è. ("Insolvency

10, If any lawsuit" reference or arbitration is commenced which ariSSs out of or n~látes to this Note, thc
Loan Documents Or the Loaii,thc prevailin~ pary shall be entitled ,to reco'Ver from each othî:rparty such silms as

the

cOiirt, referec or arbitrtor mayiidjiidgctobereasonable attorneys' fees in suëhaction, in addition to costs-aiidexpenses to pay all of otherwise allowed by law, In all other sÎluations, inc1udiiigany Insolvency Proceeding~ Bòrrower agrees
Lender's cos~s and oJ expenses, including attorneys.' fees, which

may be incurred in enforcing or protecting Leiider;s rights

interests. From the time(s) in,curred until paid in full to Lender, all such sU,ms shall bear interest at the Default Rate.

II.
oftbat State.

This Note is governed by the laws of the State ofCalifornia, without regard to the choice of law rules

12. Borrower agrees that ,the holder of this: Note may accept additional or substitue s~ui'ty for this Notc,
or release any .security or any pary liable for this Note, or extend or, renew this Note,all without notice to

BOITowcr and

wiihoul affecting ihe liability ofBoriöwer.
11, If Leiic!er delays in st¡all not cpnstit:ute a waiver of exercising or fails

to exerise any ofiarights ¡¡iider this.Note, tbatdelay or failure
of

any of Lender's righis,or ccfanY br~ch, defáult Qr rallure of condition

or under this

Note. No w¡1iver by Lend,erofany of its rights, or of 'unless the waiver ,is expressly Note or uoderapplicablè law

anY: such bre.ach, dëfa\1,ln::r failure ofcÖnditjons\\all bç effì:ctiye,

staed in 'a writing signed by Lender. AU öf Lender's remedies

in conn!:tioJJ with this

shall ~ci.i:ulativt;a.dLen9.er'st¡;erciseof"al1yone 6.r more, Qfttose remedies shall nöt

i:onstiiue an e1ectiQIl of remedies.

l4. This

Note, iiiurestò ànd,binds the heirs, legaltëpt'esentatives; sùccessórs ÌÛd aSigns of Bönower arid
delegate aiiy òfits
prior

Lender; provided; however. thar BOITwer.,ma)o'not assign this N'oteorany' Loan fundS, ora:slgn or rights or obligations undtr the',Loan Documents-, witl:out the its~ole,:and absolute discretion may, at, any tiqqe,

wrtteii consetlt'orI.end~r '\n each instace. Lender in
of

sell, trnsfer; or assignthis.Note, the Deed

Trust and the other Loan

Dacuments.
i 5. U morethiin one person or entjty arc 'signing this Note ,as

Borrower, their obligations underthi$ Note

shall be joiiit and se,vï:ral.
IN WlTNESS WHEREOF, this Note has been duly executed anddeliveri:d by BOlTower as of

the date set fort

above.
See signatures on the next

page

:2

205

Case 5:07-cv-04808-JF

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Page 27 of 88

stTN ENTERf~I.$E,iNt.,
a California corporation

.'..':~.'~' ..,' '''.1'
B,y,

N~nie: NazUn S.M. Faq,u ryaD
Tite: CÈO'lIndPrcsident

,,

By, ~.!~~Jj ,Name: SayedM; ,Faquiryan
t¡Ù-e: Seel'ctary.aod Treasurer

-'-::-:..,

3

206

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EXHIBIT K TO SECOND AMENDED COMPLAINT

207

Case 5:07-cv-04808-JF

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Page 29 of 88

07-7113015712
05/07/2807 11: 16
I'ouow INSTRUC CAL Y
A. tW & PHHe OF COACT AT i:IUR ICI

UCC FINANCING STATeMENT

F I LED

B. SEND ACKNWLDGMENT TO; (N II Adil

...1004734

..

IIIIII cc.i.J~O~NJ~ ITAn iu lIe~IT"Y O~

50s

~~~iSearch
Sacnto. CA 95814

iiiiiii~iiiiii iae1&e lIe' ni.iii

TT AIW IIAC!! IS FO RUQ OIICI U& OM Y 1. DE8TORS EX RJ Lf NA .ii r; _.. -11. or Ib). do na-- or --

~ ,.: . .... _...... .. - _.. - '._... - ..

i1c.11

ST Entii,

in. 8 Ce coVOet.

TiCA
Of
'0.
io " ..

831 Sa Fiilpe Ro
14. TMIDI: 88OREI

OR 2bIHVI'S i.r 'W

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bi.
ID . s

QT

CO
zz.

0IT1 ::

s. SED PARS NA (or- 0I1OAI AION J1 A8''. -..- -- po -~.. 31)

:: CRIZ'JCN1W BP Wil Co Pr LLC. . D8lmil la co

OR::
MA

-

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... TI AI ST,iIEJT - ii '* aa:

La P8

CA

Th pr Io 1I631 SI fe Ro. Hor. ~ilf 9135

Se II Sd -- Sc 2.

Of

II

FlII OF CO - NATIO UC FINAG STATEME ¡FO UCi) (f.II/2)

208

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Page 30 of 88

.. ~
Debtor: Secur Par:

'" 1: G ..
1: m EI
&!

STI Enterpnse Inc., a Californa coron
BP West Coast Pructs LLC, a Delawar limite liabilty

compay
SCHEDULE 1

~

Legal Deption of Prope
TI LAN REERD TO HEREIN BELOW is SITATE IN TH CIT OF
HOLLISTER, COUN OF SAN BENO, STATE OF CALIFORNIA AN is DESCRIED
AS FOLLOWS:

, ~HAT REAl. ~D..ERT~IN ,~OPEit. ,LOCAJI.IN..J Ctt"OF HOLLIS'fR,
COUN OF SAN BENITO, 8T ATE OF CALIFORNA, BEING A PORTION OF PARCEL I

AS SAID PARCEL is SHOWN UPN TH PARCEL MA RECORDED IN BOOK 7 OF PARCEL MAS AT PAGE 59. OFFICIA REORDS, AND BEING MORE PARTICULARY DESCRIED AS FOLLOWS:

COMMCING AT TI SOUTHSTERLY CORNR OF PARCEL 1 AS SHOWN UPON

SAI MA;

THCE N 2 DEGRES 06 MIS 20 SECONDS E, 183.48 FEET ALONG TH RIGHT OF WAY OF SAN FELIPE ROAD (STATE HWY. 156) TO THE TRUE POINT OF

BEGING;

TICB FROM SAI TRUE POIN OF BEGING, CONTUIG ALONG SAI
RIGHT OF WAY, N 2 DEGREES 06 MITE 20 SECONDS E, 176A8;

THCE NORTHESTERLY ON THE ARC OF A TANGEN CURVE TO TH RIGHT CONCA VB TO TH SOUTST, HAVING A RADIUS OF 20.00 FEET. THOUGH A CEN ANGLE Of 90 DEGREES 28 MITE ) 0 SECONDS. FOR AN ARC LEGTH

OF 31.58 FET TO A POIN ON TI SOUTHY RIGHT OF WAY LIN OF CHAPELL
ROAD.

THCE EASTERLY ALNG SAID RIGHI OF WAY LIN, S 87 DEGREES 25 MITES 30 SECONDS E 146.84 FET;

THCE LEAVIG SAI LINE. S 2 DEGREES 06 MITES 2() SECONDS W, 222.ß1

Fæ~ '
POIN OF BEGING,
APN: 051-100-00

THCE N 87 DEGREES 25 MJS 11 SECONDS W, 90.0 FET;

THCE N 79 DEGRES 10 MIS 29 SECONDS W, 60.93 FE;
THCE N 41 DEGRES 33 MINTE 35 SECONDS W, 24.26 FEET TO THE TRUE

209

Case 5:07-cv-04808-JF

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,.

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Page 31 of 88

.. I\
Debtor: Secur Par:

UI

CD

STT Entese, Inc., a Caiforna coIporaon BP Wes Coast Prducts LLC, a Delawae limited liabilty

ø
lCD
C5

GI

sa

compay
SCHEDULE 2

N

DESCRION OF PERSONAL PROPERTY
(a) All peronal propert (including, wHhout limitaon., all goos, supplies,

equipment, pipe, gasJine dins, wwer storae ta, futu, fushigs,

fixts, mahinery, inventory, and conson mates) in whch Trur now or
th Rea Prpey or the Improvements or us in the operation. use or ocupacy therf
or the constron of any Imprvements thereon, togeter with any inte of

, .her,11ui an-irter-or-ri'whclr'fs 'now or1fetedoëë on or affxe(lto

Trur in

and to persna prope wwch is lea or subjec to any supeor sety interest and
all boks. reord. leases and other ageeents, docents, and insents of whaver kid or chacte, relatng to the Real Prpery, Imprvements, or such peona prope;
(b) All fees, income, rents. isues, profits, ea, reipt. royalties, an revenues which, af the date hereof and whle any porton of th Obligations reais

unaid or unpeonned, may accrue from suc pena propert or any pa therf or

frm the Re Proper, the Imprvements or any other par of the Trust Esta, or which
may be received or recvable by Trustor frm

any hig, using, let, leaing,

subhing, sublettg, subleain, occupancy, opeon, or us thetf~

(c) AU of Tnntor's prnt and futu rights to reeive payments of money, servce, or propert frm or thugh the Re Prpert or Improvements including

without liitation, righ to all depsits frm tets of the Real Proper or
Improvement acunts and other acunts reivable, depsit acunts, chattl pape,
note ch. contrct rights, inents, gener intagibles. and pnncipa, inte and
payments due on account of goo sold or leaed seces rendere, loan mae or crt

extde togeter with title to or interest in all agents documents, and instents

evidencing, seg or guing th sa, afectig or arsing frm or thugh the
Rea Prper or the Imrovements;
(d) All other intagible prope and rights relatig to the Rea Prpert, the

Improvements, the persona propey desbe in P~ph (a) above or the operon,

occupcy, or us thereof, including, without limitation, to the extent assignble, aU

goveren and non-goverenta pets, lice, and approvals relatng to
conson on or operaon, ocupancy, or us of the Rea Prpe or Improvements all
naes under or by wlch the Rea Propey or Improvements may at BOy tie be
opera or known, aU rights to ca on buiness under any such nams. or any varant therf, all trade nam and trdear, relating in any way to the Rea Proper or the Improvements, and all good win in any way relatig to the Rea Propert or the

llprovements;

210

-_. _....

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.

.,

m ..
CD

UI ID

'"

..

(e) Trutor's rights under all inurce policies covering the Rea Prrt,
the Improvements, th Persona Propert, and the other pas of

m m

the Tru Estac and any

'"
Ð

and an proceds loss payments and preium refups payable regaing the sae;

Pro~; ,
(g)

(f) All rerves, defer payments, deposits, refuds, cost saving, and

payments of any kind re1atng' to the constcton of any Improvements on th Rea
All wa~r stock relating to the Rea Prope;

(b) All causes of aCtion, cJai, compenstion, and recoveres for any dae
to, destion of, or condemnon or takg of

th Rea Propert, the Improvement3, the

.,~..l-~na.ltcmrti. ç~,p~I~_o.f.tJt-,-T~~,.or for.JY conveyan in lieu
the Tro Estate;

therf, whether diect or consuential, or for any dage or injur to the Rea Prpert, the Tru Esta, or for any the Improvements, the Perna Prope, or any other pa of
loss or diuton in value of the Rea Prpert, the Improvements, the Peronal
Proper, or any other pa of

(i) All arhitectu, stctu, mechaica, and engineerg plans and
speifcations prar for constion of Imprvements or extacon of oil, minra or

grvel ffm the Rea Prope and all stues data an drwigs related thero; an also
all cont and ageements of Trur relatg to the aforesd plan and speifcaons or to the afored stes, da and drwigs or to the consction of Improvements on

or exon of oil, minerals or grvel from the Rea Prope;

of the Rea Propert, includin, without litaon, all amendments, modficaons exions and sulements 1heret, togeter wiuu all seurty, reaton and oth
depsits recived or to be recived by Trur in connecûon therwith; and

G) All sales contrct enterd into with any pary for the sae of al or any par

(k) Except for the exces, al pr frm sale or disposition of any of the
aforesaid collatL.

As us in ths Schedle 2. the tenns "Rea Prope". "Imprvements", "Persona
Propert" sh have the meangs set fort in the Deed of

Trust to which this Schedule 2

is atthed.

211

I

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EXHIBIT L TO SECOND AMENDED COMPLAINT

212

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UNCONDITIONAL CONTINUING GUARANTY
In order to induce BP WEST COAST PRODUCTS LLC, a Delaware limited liability company, its successors and assigns ("Lender") having an offce at 4 Centerpointe Dr., LPR 6-180, La Palma, CA 906