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HomeMy WebLinkAboutMINUTES - 05152007 - C.3 __ SE j TO: BOARD OF SUPERVISORS `? THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on May 15, 2007 by the following vote: AYES: Gioia,Uilkema, Bonilla, Glover and Piepho NOES: None ABSENT: None ABSTAIN: None RESOLUTION NO. 2007/ SUBJECT: Approving the Parcel Map and Subdivision Agreement for Minor Subdivision 04- 00025,for project being developed by Pacific Northwest Services,El Sobrante area. (District I) The following documents were presented for Board approval this date: I. Map The parcel map of Minor Subdivision 04-00025,property located in the El Sobrante area, Supervisorial District I, said map having been certified by the proper officials. II. Subdivision Agreement A subdivision agreement with Pacific Northwest Services, principal, whereby said principal agrees to complete all improvements as required in said subdivision agreement within two years from the date of said agreement. Accompanying said subdivision agreement is security guaranteeing completion of said improvements as follows: I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors Originator: Public Works(ES) on the date shown. Contact: S.Gospodchikov(313-2316) AH:vz G:\EngSvc\60\2007\05-15\BO-21 MS O4-0025.doc ,��/ n cc: Public Works–Construction ATTESTED: /ft /r— g2-ty 7— Current Planning,Community Development , T–March 15,2009 JOHN CULLEN, erk of the Board of Supervisors and Pacific Northwest Services County Administrator 3223 Blume Drive Richmond,CA 94806 Suretec Insurance Company 3033 P Avenue,#300 By Deputy San Diego,CA 92103 RESOLUTION NO.2007/ ��� SUBJECT: Approving the Parcel Map and Subdivision Agreement for Minor Subdivision 04- 00025, for project being developed by Pacific Northwest Services, El Sobrante area. (District I) DATE: May 15, 2007 PAGE: 2 A. Cash Bond Performance amount: $1,000.00 Auditor's Deposit Permit No. 481856 Date: April 19, 2007 Submitted by: Pacific Northwest Services Tax ID Number: 94-3328557 B. Surety Bond Bond Company: Suretec Insurance Company Bond Number: 4359414 Date: March 31, 2007 Performance Amount: $97,900.00 Labor&Materials Amount: $49,450.00 Principal: Pacific Northwest Services III. Tax Letter Letter from the County Tax Collector stating that there are no unpaid County taxes heretofore levied on the property included in said map and that the 2006-2007 tax lien has been paid in full and the 2007-2008 tax lien,which became a lien on the first day of January 2007, is estimated to be $7,200.00, with security guaranteeing payment of said tax lien, as follows: • Tax Surety Auditor's Deposit Permit: 481983 Date: March 23, 2007 Amount: $7,200.00 Submitted by: Pacific Northwest Services NOW, THEREFORE, THE FOLLOWING IS RESOLVED: 1. That said subdivision, together with the provisions for its design and improvement,is DETERMINED to be consistent with the County's general and specific plans. 2. That said parcel map is APPROVED and this Board does not accept or reject on behalf of the public any of the streets, paths, or easements shown thereon as dedicated to public use. 3. That said subdivision agreement is also APPROVED. All deposit permits are on file with the Public Works Department. RESOLUTION NO. 2007/ SUBDIVISION AGREEMENT (Gov,Code,§§66462 and 66463) / 2 Subdivision: M S 040025 Effective Date: Subdivider:PACIFIC NORTHWEST SERVICES Completion Period: 2 VPlt/S THESE SIGNATURES ATTEST TOTHE PARTIES'AGREEMENT HERETO: CONTRA COSTA COUNTY SUBDIVIDER Maurice M.Shiu,Pu Ilc Works Director. By. PACIFIC NORTHWEST SERVICES Print Name RECOMMENDED FOP VAL: PdntTille By: � t Name nghneenng Services Division Print Till FORMAPPROVED: SlIvanoB.MarchestCounty CounselN(M,.AIIsIgnaturesmustbea ow ged.IfSubdivider isincorporated,the contract must be ' two officers.The first s gnaWra must be That of the chairman of the board,president,or vice-president;the second signature must be that of the secretary, assistant secretary,Olaf financial officer,or assistant treasurer.(CIv.Code,§1190 and Corps.Code,§313.) CERTIFICATE OF ACKNOWLEDGMENT State of California ) County of Cal' ^��j as. On the date written below,before me,the undersigned Notary Public,personalty appeared the persons)sgnfng above for\ 1�v\. �],personalty known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s)[stare subscribed to the within Instrumenta eclmowr�0 ledged to me lhathelsheithey executed the same In histhedtheir authorized cepecity(les),and that by hislherltheir signature(s)on instrument the person(s),or the entity upon behalf of w Ich the person(s)acted, executed the Instrument ' WITNESS my hand and official seal. KART J. SARTIN COMM1557 Dated: I 0—���� NOTARY #145ALIF NOTARY PUBLIC o CALIFORNIA ONTRA COSTA COON otary ublic Comm.Exp.NOV.24,2007 (Notary Seaq 1. PARTIES BDATE.Effective on the above date,the County of Contra Costa,California,(hereinafter'County')and the above-mentioned Subdivider mutually promise and agree as follows concerning this Subdivision: z IMPROVEMENTS.SubdMderagreestoInstall certain mad Improvements(both publicand private),drainage Improvements,signs,sbaetlghts,tire hydrants,landscapbgand such other hnprovements(including appurtenant equipment)as required in the improvementplans for this Subdivision as reviewed and on file with the Contra Costa County Public Works Department as required by the Conditions of Approval for this Subdivision,and In confomhar�e with the Contra Costa County Ordinance Code,including future amendments thereto (hereinafter'Ordinance Code'), Subdividershall complete said Improvements(hereinafter'WoW)wit hin me above rpmp(eton period from date hereof,as required by the California Subdivision Map Act(Gov. Code,§§66416 at seq.)in a goad workmanlike manner,in accordance with accepted consttucti6n practices and In a manner equal or superior to the requirements of the Ordinance Code and rulings made thereunder,and where there is a conflict arc ong the Improvement plans,the diondifiore of Approval and the Ordinance Code,the strider requirements shag govern. 3. IMPROVEMENTS SECURITY. Upon executing this Agreement the SubdMdersheg,pursuant to Gov.Code§66499 and the County Ordinance Code,provide as security to the County: A, For Performance and Guarentee:E1 , 0 0-0 . O Ocash,plus additional security,In the amount of89 7 , 9 0 0 . O,ahieh togethertotal one hundred percent(100%)of the estimated cost of the Work.Such additional securityis presented in the forth of: Cash,cerlified check or cashier's check. �—Acceptable corporate surety band. Acceptable[revocable letter of credit. With this security,Subdivider guarantees performance underthis Agreement and maintenance of the Work foroneyearafterits completion and acceptance againstany defective workmanship or materials or any unsalisfactory performance. forth of: B. For PaymenC Securityin the amount:94-9-,-4 5 0 . 0 0 ,whknh Is fdty percent(50%)of the estimated cost of the Work.Such security is presented In the Cash,cera flied check,or cashier's check —Acceptable corporate surety bond. Form Approved by County Counsel Acceptable irrevocable letter of credit. [Rev.91031 Page 1 of 2 F\ JUL-10-2006MON 09: 18 AM SECURITY PACIFIC FAX N0. 510 222 8776 P, 02 SECRETARY OF STATE �Ry I, BILL JONES, Secretary of State of the State of California, hereby certify: That the attached transcript of y page(s) was prepared by and in this office from the record on file, of which it purports to be a copy, and that it is full, true and correct. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of APR 0 5 2001 Secretary of State ,x aiy 'F > U( seaswo Form CE-105(rem.else) OSP00d2d13 JUL-10-2006 MON 09: 19 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 03 „m . State of California File# o gX Bill Jones FI«c In ttte office of the Secretary of State Q,��a••• Secretary of State of the State of011WOnia LIMITED LIABILITY COMPANY MAR 14 210111 ARTICLES OF ORGANIZATION A $70.00 filing fee must accompany this form. IMPORTANT—Read instructions before completing this form. BtLLJI MFS,Secretary of State This Space For Filing Use Only i. Name of the limited liability company (end the name withAhe words"Llmited Uabillry Company,- Ltd.Llablllty,Co,;or the abbrevisVons"LLC"or 'L.L,C') Pacific Northwest Services , L .I .C. 2. The purpose of the limited liability company is to engage in any lawful act or activity for which a limited liability company may be: organized under the Beverly-Killea limited liability company act. 3. Name the agent for service of process and check the appropriate provision below: Patricia Johnson which is 1c?4 an individual residing in California, Proceed to item Q. ( } a corporation which has filed a certificate pursuant to section 1505. Proceed to item 5. a. If an individual,California address of the agent for service of,process: Address: 3223 Blume Drive City; Richmond State: CA Zip Code 5. The limited liability company will be managed by; (check one) - -- (X)ono manager [ ) moral harione manager ( )single member limited liability company ( ]all limited liability company members 6. Other matters to be included in this certificate may be set forth qn separate attached pages and are made a part of this certificate. Other matters may include the latest date on which the limited liability company is to dissolve. 7. Number of pages attached,if any: 8. Type of business of the limited liability company.(For informational purposes only) The acquisition, management and selling of real property , 9. DECLARATION: It is hereby declared that I am the person who executed this instrument,which execution is my act and deed. A,—�- MAT,TAA PFT T Y Signature of anizer Type or Print Name of Organizer Date 10. RETURN TO: NAME M.AIJ.A PEILY, ESQ• fi FIRM ARCHER NORRIS y , ADDRESS 2300 NORTH MAIN STREET, SUITE 800 CITY/STATE WALNUT CREEK, CA 94596 a ZIP CODE L 1SY IDS SEC/STATE (REV. 12199) FORM LLC-1—FILING FEE$70.00 Approved by Secretary of State JUL-10-2006 MON 09; 19 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 04 __..... r OPERATING AGREEMENT for PACIFIC NORTHWEST SERVICES,LLC a California Limited Liability Company This Operating Agreement is entered as of March 2001 by Gary Torretta and The Burns Family 1996 Trust, Jack D. Bums, Special Trustee(referred to individually as a Member and collectively as the Members). RECITALS A. The Members desire to form a Iimited liability company ("Company") under the Beverly-Killea Limited Liability Company Act. B. The Meiitbers enter into this Operating Agreement in order to form and provide for the governance of the Company and the conduct of its business and to specify their relative rights and obligations. NOW THEREFORE, the Members hereby agree as follows: ARTICLE I_ DEFINITIONS The following capitalized terms used in this Agreement have the meanings specified in this Article or elsewhere in this Agreement and when not so defined shall have the meanings set forth in California Corporations Code section 17001. 1.1. "Act"means the Beverly-Killea Iimited 'Liability Company Act (California. Corporations Code sections 17000-17705), including amendments from time to time. 1.2. "Agreement"means this Operating Agreement, as originally executed and as amended from time to time. 1.3. "Articles of Organization"is defined in California Corporations Code section 17001(b) as applied to this Company. 1.4. "Assignee"means a person who has acquired a Member's Economic Interest in the Company, by way of a Transfer in accordance with the terms of this Agreement, but who has not become a Member. I.S. "Assigning Member"means a Member who by means of a Transfer has transferred an Economic Interest in the Company to an Assignee. 1.6. "Capital Account"means, as to any Member, a separate account maintained and adjusted in accordance.with Article III, Section 3.3. 1.7. "Capital Contribution"means, with respect to any Member, the amount of the money and the Fair Market Value of any property(other than money) contributed to the 50111033/152285-1 ], JUL-10-2006 I10N 09: 19 AM SECURITY PACIFIC FAX N0, 510 222 8776 Company (net of liabilities secured by such co4tributed property that the Company is considered to assume or take "subject to"under IRC section 752) in consideration of a Percentage Interest held bysuch Member. A Capital Contribution shall not be deemed a loan. 1.8. "Capital Event" means a sale or disposition of any of the Company's capital assets, the receipt of insurance and other proceeds derived from the involuntary conversion of Company property, the receipt of proceeds from a refinancing of Company property, or a similar event with respect to Company property or assets. The Company's capital assets shall not include any real property that the Company acquires in the normal course of its business for management and/or resale 1.9. "Code" or "IRC" means the Internal Revenue Code of 1986, as amended, and any successor provision. 1.10. "Company"means the company named in Article II, Section 2.2. 1.11. "Economic Interest"means a Person's right to share the income, gains, losses, deductions, credit or similar items of, and to receive distributions from, the Company, but does not include any other rights of a Member, including the right to vote or to participate in management of the Company. 1.12. "Encumber"means the act of creating or purporting to create an Encumbrance, whether or not perfected under applicable law. 1.13. "Encumbrance"means,with respect to any Membership Interest, or any element thereof, a mortgage,pledge, security interest, lied,proxy coupled with an interest (other than as contemplated in this Agreement), option or preferential right to purchase, 1.14. "Gross Asset Value" means, with respect to any item of property,of the Company, the item's adjusted basis for federal income tax purposes, except as follows: (a) The Gross Asset Value of any item of property contributed by a Member to the Company shall be the Fair Market Value of such property, as mutually agreed by the; contributing Member and the Company; and (b) The Gross Asset Value of any item of Company property distributed to any Member shall be the Pair Market Value of such item of property on the date of distribution. 1.15. "Initial Member" or"Initial Members"means those Persons whose names are set forth in the first sentence of this Agreement. A reference to an "Initial Member"means any of the Initial Members, 1.16. "Involuntary Transfer"means, with respect to any Membership Interest, or any element thereof, any Transfer or Encumbrance, whether by operation of law, pursuant to court order, foreclosure of security interest, execution of a judgment or other legal process, or SQ111033/192265-1 2 JUL-10-2006 MON 09: 19 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 06 otherwise, including a purported transfer to or fFom a trustee in bankruptcy,receiver, or assignee for the benefit of creditors. 1.17. "Losses." See"Profit and Losses." 1.18. "Majority of Members"means a Member or Members whose Percentage Interests represent more than 50 percent of the Percentage Interests of all the Members. 1.19 "Manager"or"Managers"means the Person(s) named as such in Article II, Section 2.7 or the Person(s) who from time to time succeed any Person as Manager and who, in either case, are serving at the relevant time as a Manager. 1.20. "Member"means an Initial Member or a Person who otherwise acquires a Membership Interest, as permitted under this Agreement, and who remains a Member. 1.21. "Notice"means a written notice required or permitted under this Agreement. A notice shall be deemed given or sent when deposited, as certified mail or for overnight delivery, postage and fees prepaid, in the United States snails;when delivered to Federal Express, United Parcel Service, DHL World-Wide Express, or Airborne Express, for overnight delivery, charges prepaid or charged to the sender's account; when personally delivered to the recipient; when transmitted by electronic means, and such transmission is electronically confirmed as having been successfully transmitted; or when delivered to the home or office of a recipient in the care of a person whom the sender has reason to believe will promptly communicate the notice to the recipient. 1.22. "Officer" or"Officers" means the,Person(s)named as such in Article II, Section 2,8 or the Person(s) who from time to time succeed any Person as Officer and who, in either case, are serving at the relevant time as an Officer. 1,23. "Percentage Interest"means the percentage interest of each Member, asset forth opposite the name of each Member below: The Burns Family 1996 Trust, 50% Jack D. Burns, Special 'Trustee Gary Torretta 50% Total 100% 1.24. "Person"means an individual, partnership, limited partnership,trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign. 1.25. "Profits and bosses"means, for each fiscal year or other period specified in.this Agreement, an amount equal to the Company's taxable hicome or loss for such year or period, determined in accordance with IRC section 703(a). sozzzoaa/z�zzes-z 3 JUL-10-2006 MON 09:20 AM SECUKI'1'Y NACIFIC FAX N0. b10 222 8/76 N. 07 1.26. "Proxy"has the meaning set forth in the fust paragraph of California Corporations code section 17001(ai). A Proxy may not be transmitted orally. 1.27. "Regulations"("Reg")means the income tax regulations promulgated by the United States Department of the Treasury and published in the Federal Register for the purpose of interpreting and applying the provisions of the Code, as such Regulations may be amended from time to time, including corresponding provisions of applicable successor regulations. 1.28, "Substituted Member" is defined in Article VIII, Section 8.8. 1.29. "Successor in Interest"means an Assignee, a successor of a Person by merger or otherwise by operation of law, or a transferee of all or substantially all of the business or assets of a Person. 1.30. "Transfer"means, with respect to a Membership Interest, or any element of a Membership Interest, any sale, assignment, gift, Involuntary Transfer, or other disposition cif a Membership Interest or any element of such a Membership Interest, directly or indirectly, other than an Encumbrance that is expressly permitted under this Agreement. 1.31. "Triggering Event"is defined in Article VIII, Section 8.3. 1.32. "Vote"means a written consent or approval, a ballot cast at a Meeting, or a voice vote. 1.33. "Voting Interest"means, with respect to a Member, the right to Vote or participate in management and any right to information concerning the business and affairs of the company provided under the Act, except as limited by the provisions of this Agreement, A Member's Voting Interest shall be directly proportional to that Member's Percentage Interest. ARTICLE II: ARTICLES OF ORGANIZATION 2.1. Promptly following execution of this Agreement, the Members shall cause Articles of Organization, in the form attached to this Agreement as Exhibit A, to be filed with the California Secretary of State. 2.2. The name of the Company shall be Pacific Northwest Services, LLC. 2.3. The principal executive office of the Company shall be at 3223 Blume Drive, Richmond, California, 94806, or such other place or places as the Members may determine.from time to time. 2.4. The initial agent for service of process on the Company shall be Patricia Johnson, 3223 Blume Drive,Richmond, California 94806. A Majority of Members may from time to time change the Company's agent for service ofprocess. 50112033/192285-1 4 JUL-IU-CUUti MUN Uy:?U Am 5t:t;UK11y NAClhlt MX NU. blU ?L2 8((8 _. _.. _. . ._. __ ....... P. 08 2.5. The Company will be formed for the purposes of engaging in any lawful act or activity for which a limited liability company may be organized under the Beverly-KiBea Limited Liability Company Act, including the business of acquiring, managing, and selling real property. 2.6. The term of existence of the Company shall commence on the effective date of filing of.Articles of Organization with the California Secretary of State, and shall continue until March 1, 2050, unless sooner terminated by the provisions of this Agreement or as provide by law. 2.7. The name and business address of the Manager of the Company is Patricia Johnson, 3223,Blume Drive, Richmond, California 94806. 2.8 Tlie Officers of the Company are-Jack D. Bunts, Vice-President and Gary Toretta,. Vice-President. ARTICLE III: CAPITALIZATION 3.1. Each Member shall contribute to the capital of the Company as the Member's Capital Contribution the money and property specified in Exhibit B to this Agreement. The Pair Market Value of each item of contributed property as agreed between the Company and the Member contributing such property is set forth in Exhibit B. Unless otherwise agreed in writing by all Members,no Member shall be required to make additional Capital Contributions. 3.2. If a Member fails to make a requited Capital Contribution within 30 days after the effective date of this Agreement, that Member's entire Membership Interest shall terminate and that Member shall indemnify and hold the Company and the other Members harmless from any loss, cost, or expense, including reasonable attorney fees, caused by the failure to make such Capital Contribution. 3.3. An individual Capital Account shall be maintained for each Member consisting of that Member's Capital Contribution, (1) increased by that Member's share of Profits, (2) decreased by that Member's share of Losses, and(3) adjusted as required in accordance with applicable provisions of the Code and Regulations. 3.4. A Member shall not be entitled to withdraw any part of the Member's Capital Contribution or to receive any distributions, whether of money or property from the Company except as provided in this Agreement. 3.5. No interest shall be paid on funds or property contributed to the capital of the Company or on the balance of a Member's Capital Account. 3.6. A Member shall not be bound by, or be personally liable for, the expenses, liabilities, or obligations of the Company except as otherwise provided in the Act or in this Agreement. 50111033/192265-1 5 JUL-10-2006 MON 09;20 All SECURITY PACIFIC FAX N0, 510 222 8776 P. Q9 1 3.7. No Member shall have priority over any other Member,with respect to the return of a Capital Contribution, or distributions or allocations of income, gain, losses, deductions, credits, or items thereof. ARTICLE IV: ALLOCATIONS AND DISTRIBUTIONS 4.1. The Profits and Losses of the Company and all items of Company income, grain, loss, deduction, or credit shall be allocated, for Company book purposes and for tax purposes, to a Member in accordance with the Member's Percentage Interest. 4.2. If any Member unexpectedly receives any adjustment, allocation, or distribution described in Reg sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)2(i.i)(d)(5), or 1.704- 1(b)(2)(ii)(d)(6), items'of Company gross income and gain shall be specially allocated to that Member in an amount and manner sufficient to eliminate any deficit balance in the Member's Capital Account created by such adjustment, allocation, or distribution as quickly as possible. Any special allocation under this Section 4.2 shall be taken into account in computing subsequent allocations of Profits and Losses so that the net amount of alloc,,ations of income and loss and all other items shall, to the extent possible, be equal to the net amount that would have been allocated if the unexpected adjustment, allocation, or distribution had not occurred. The provisions of this Section 4.2 and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Reg sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied in a manner consistent with such Regulations. 4.3. Any unrealized appreciation or unrealized depreciation in the values of Company property distributed in kind to all the Members stall be deemed to be Profits or Losses realized by the Company immediately prior to the distribution of the property and such Profits or Losses shall be allocated to the Members' Capital Accounts in the same proportions as Profits are allocated under Section 4.1. Any property so distributed shall be treated as a distribution to the Members to the extent of the Fair Market Value of the property less the amount of any liability secured by and related to the properly. Nothing contained in this Agreement is intended to treat or cause such distributions to be treated as sales for value. For the purposes of this Section 4.3, "unrealized appreciation" or"unrealized depreciation"shall mean the difference between the Fair Market Value of such property and the Company's basis for such property. 4,4. In the case of a Transfer of an Economic Interest during any fiscal year, the Assigning Member and Assignee shall each be allocated the Economic Interest's share of Profits or Losses based on the number of days each held the Economic Interest during the fiscal year. 4.5. All cash resulting from the normal business operations of the Company and from a Capital Event shall be distributed among the Members in proportion to their Percentage Interests at such tinges as the Members may agree. 4.6. If the proceeds from a sale or other disposition of a Company asset consist of property other than cash, the value of such property shall be as determined by the Members. Such non-cash proceeds shall then be allocated among all the Members in proportion to their S0111033/192266-1 6 A-10-2006 MON 09;20 AM SECURITY PACIFIC FAX N0. 510 222 8776 _. P. 10 Percentage Interests. If such non-cash proceed$ are subsequently reduced to cash, such cash shall be distributed to each Member in accordance with Section 4.5. 4.7. Notwithstanding any other provisions of this Agreement to the contrary, when there is a distribution in liquidation of the Company, or when.any Member's interest is liquidated, all items of income and loss first shall be allocated to the Member's Capital Accounts under this Article IV, and other credits and deductions to the Members' Capital Accounts shall be made before the final distribution is made. The final distribution to the Members shall be made to the Members to the extent of and in proportion to their positive Capital Account balances. ARTICLE V; MANAGEMENT 5.1. The Manager named in Article lI, Section 2.7, or a successor Manager selected in the manner provided in Article V, Sections 5.2 and/or 5.3, shall manage the business of the Company. Except as otherwise set forth in this Agreement, the Manager shall make all decisions concerning the management of the Company's business. ,a. 5.2 The Manager shall serve until the earlier of: (1) the Manager's resignation, retirement, death, or disability; (2) the Members' removal of the Manager; or(3) the expiration of the Manager's term as Manager, if the Members have designated a term for the Manager. The Members shall appoint a new Manager upon the occurrence of any of the above events. 5.3 A Majority of Members shall appoint the Manager for a tern that expires either (a) with the appointment of a successor Manager or (b) at a time that the Majority of Members. specifies in connection with the appointment. A,Majority of Members may remove any Manager who is also .not a Member with or without cause at any time. 5.4 The Manager shall have the duties and powers described in this Section 5.4 and such other powers as the Members or this Agreement may prescribe. The Manager shall have the responsibility to manage the day-to-day operations of the Company and to keep the Members informed of such operations. However, the Manager shall not, without the prier approval of at least one Member, execute any documents on the Company's behalf, sign any Company checks; S � or make, perform or agree to any transaction on the Company's behalf or that obligates the: Company in any amount or manner. Notwithstanding any of the foregoing,the Manager shall not take any of the following actions on behalf of the Company without the prior consent or approval of a Majority of Members: (a) Any act that would make it impossible to carry on the ordinary business of the Company; (b) A confession of judgment against the Company; (c) The dissolution of the Company; S0111033/1522BS-1 7 JUL-10-2006 MON 09:20 AM SECURITY PACIFIC FAX N0. 510 222 8776 P. 11 (d) The disposition of all or substantial part of the Company's assets not in the ordinary course of business; (e) The incurring of any debt not in the ordinary course of business; (f) A change in the nature of the principal business of the Company; (g) The incurring of any contractual obligation or the making of any capital expenditure with a total cost of more than S 10,000; (h) The filing of a petition in bankruptcy or entering into of an arrangement among creditors; and (i) The entering into, on behalf of the Company, of-any transaction constituting a"reorganization"within the meaning of California Corporations Codes §17600. 5.5. The Members acknowledge that the Manager has other business interests and duties to which the Manager devotes part of his or her time. The Manager:�hall devote such time to the conduct of the Company's business as the Members, in their own discretion, deem necessary. 5.6 The Manager shall be entitled to compensation for the Manager's services to the Company as the Members determine, and to reimbursement for all expenses reasonably incurred by the Manager in the performance of the Manager's duties. 5.7 The Manager shall cause all assets of the Company,whether real or personal, to be held in the name of the Company. , 5.8 All funds of the Company shall be deposited in one or more accounts with one or more recognized financial institutions in the name of the Company, at such locations as the Majority of Members shall determine. Withdrawal from such accounts shall require only the signature of the Manager. ARTICLE VI: OFFICERS 6.1 The Officers named in Article IT, Section 2.8, or successor Officers selected in the manner provided in Article VI, Sections 6.2 and/or 6.3, shall assist the Manager in the management of the Company. 6.2 Each Officer shall serve until the earlier of. (1) the Officer's resignation, retirement, death, or disability; (2)the Members' removal of the Officer; or(3) the expiration of. the Officer's term as Officer, if the Members have designated a term for the Officer. The Members may appoint a new Officer upon the occurrence of any of the above events. 6.3 Officers shall serve for a term that expires either(a) with the appointment of successor Officers or(b) at a time that the Members specify in connection with the appointment. 50111033/192285-1 8 JUL-10-2006 MON 09;21 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 12 6.4 The Officers shall have the duties and powers described'in this Section 6.4 and such other powers as the Members or this Agreement may prescribe. The Officers shall assist the Manager with the management duties described in Article V. Each Officer shall have the authority, acting alone, to bind the Company, to execute contracts or other documents on the Company's behalf and to sign Company checks in any amount. For purposes of the preceding sentence, the signature of one Officer is sufficient. ARTICLE VII: ACCOUNTS AND RECORDS 7.1. Complete books of account of the Company's business, in which each Company transaction shall be fully and accurately entered, shall be kept at the Company's principal executive office and shall be open to inspection and copying by each Member or the Member's authorized representatives on reasonable Notice during normal business hours. The Member shall bear the costs of such inspection and copying. 7.2. Financial books and records of the Company shall be kept on the accrual method of accounting, which shall be the method of accounting followed by the Company for federal income tax purposes. A balance sheet and income statement of the Company shall beprepared promptly following the close of each fiscal year in a manner appropriate to'and adequate for the Company's business and for carrying out the provisions of this Agreement. The fiscal year of the Company shall be January 1 through December 31. 7.3. At all times during the term of existence of the Company, and beyond that term if a Majority of the Members deem it necessary,the Manager shall keep or cause to be kept the books of account referred to in Section 7.2, and the following: (a) A current list of the full name and last known business or residence address of each Member, together with the Capital Contribution and the share in profits and Losses of each Member; (b) The full name and last known business or residence address of each Manager; (c) A copy of the Articles of Organization, as amended; (d) Copies of the Company's federal, state, and local income tax or information returns and reports, if any, for the six most recent taxable years; (e) Executed counterparts of this Agreement, as amended; (f) Any powers of attorney under which the Articles of Organization or any amendments thereto were executed; (g) financial statements of the Company for the six most recent fiscal years; and 80111033/1922B5-1 9 JUL-10-2006 NON 09:21 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 13 F ' The Books and Records Of the Company as the relate to the Company's (h) P Y Y '^ internal affairs for the current and past four fiscal years. If a Majority of the Members deem that any of the foregoing items shall be kept beyond the term of existence of the Company, the repository of said items shall be as designated by a Majority of Members. 7.4. Within 90 days after the end of each taxable year of the Company, the Company shall send to each of the Members all information necessary for the Members to complete their federal and state income tax or information returns, and a copy of the Company's federal, state, and local income tax or information returns for such year. ARTICLE VIII: MEMBERS AND VOTING 8.1. There shall be only one class of membership and no Member shall have any rights or preferences in addition to or different from those possessed by any othe>;Member. Each. Member shall Vote in proportion to.the Member's Percentage Interest as of the governing record date, determined in accordance with Section 8.2. Any action that the Members may or must take shall be by a Majority of Members, except that the following actions shall all require the unanimous Vote of the Members: (a) The transfer of a Membership Interest and the admission of the Assignee as a Member of the Company; (b) Any amendment of the Articles of Organization or this Agreement; or (c) Compromise of the obligation of a Member to make a Capital Contribution, 8.2. The record date for determining the Members entitled to Notice of any Meeting, to Vote, to receive any distribution, or to exercise any right in respect of any other lawful action, shall be the date set by a Majority of Members,provided that such record date shall not be more than 60, nor less than 10 days prior to the date of the Meeting,nor more than 60 days prior to any other action. 8.3. At all Meetings of Members, a Member may Vote in person or by Proxy. Such proxy shall be filed with any Member before or at the time of the Meeting, and may be filed by facsimile transmission to a Member at the principal executive office of the Company or such other address as may be given by a Majority of Members to the Members for such ptupose:s. ARTICLE IX: TRANSFERS OF MEMBERSHIP INTERESTS 9.1. A Member may withdraw from the Company at any time by giving Notice of Withdrawal to all other Members at least 180 calendar days before the effective date of 50111033/19228.-1 10 JUL-10-2006 MON 09:21 AN SECURITY PACIFIC FAX NO, 510 222 8776 P. 14 withdrawal. Withdrawal shall not release a Member from any obligations and liabilities under this Agreement accrued or incurred before the effective date of withdrawal. A withdrawing Member shall divest the Member's entire Membership Interest before the effective date of withdrawal in accordance with the transfer restrictions and option rights set forth below. 9.2. Except as expressly provided in this Agreement, a Member shall not Transfer any part of the Member's Membership Interest in the Company, whether now owned or hereafter acquired, unless (1) the other Members unanimously approve the transferee's admission to the Company as a Member upon such Transfer and (2) the Membership Interest to be transferred, when added to the total of all other Membership Interests transferred in the preceding 12 months, will not cause the tennination of the Company under the Code- No Member may Encumber or permit or suffer any Encumbrance of all or any part of the.Member's Membership Interest in the Company unless such Encumbrance has been approved in writing.by all the other Members. Any Transfer or Encumbrance of a Membership Interest without such approval shall be void. Notwithstanding any other provision of this Agreement to the contrary, a Member who is a natural person may transfer all or any portion of his or her Membership Interest to any revocable trust created for the benefit of the Member, or any combination between or among the Member, the Member's spouse, and the Member's issue; provided that the Member getains a beneficial interest in the trust and all of the Voting Interest included in such Membership Interest. A transfer of a Member's entire beneficial interest in such trust or failure to retain such Voting Interest shall be deemed a Transfer of a Membership Interest. 9.3. (a) If a Member wishes to transfer any or all of the Member's Membership Interest in the Company pursuant to a Bona Fide Offer (as defined below), the Member shall give Notice to the Manager and all other Members at least 30 days in advance of the proposed sale or Transfer, indicating the terms of the Bona Fide Offer and the identify of the offeror. The Company and the other Members shall have the option to purchase the Membership Interest proposed to be transferred at the price and on the terms provided in this Agreement. If the price for the Membership Interest is other than cash, the fair value in dollars of the price shall be: as established in good faith by the Company. For purposes of this Agreement, "Bona Fide Offer" means an offer in writing setting forth all relevant terms and conditions of purchase from an offeror who is ready, willing, and able to consummate the purchase and who is not an Affiliate of the selling Member. For 30 days after the Notice is given, the Company shall have the right to purchase the Membership Interest offered, on the terms stated in the Notice, for the lesser of(a) the price stated in the Notice(or the price plus the dollar value of noncash consideration, as the case may be) and (b) the price determined under the procedures set forth in Section 9.8. (b) If the Company does not exercise the right to purchase all of the Membership Interest, then, with respect to the portion of the Membership Interest that the Company does not elect to purchase, that right shall be given to the other Members for an additional 30-day period, beginning on the day that the Company's right to purchase expires. Each of the other Members shall have the right to purchase, on the same terms, a part of the interest of the offering Member in the proportion that the Member's Percentage Interest bears to the total Percentage Interests of all of the Members who choose to participate in the purchase; provided, however, that the Company and the participating Members may not, in the aggregate, purchase less than the entire interest to be sold by the offering Member. 80111033/192385-1 1 1 JUL-10-2006 MON 09:21 AM SECURITY PACIFIC FAX N0. 510 222 8776 P. 15 (c) If the Company and the other Members do not exercise their rights to purchase all of the Membership Interest,the offering Member may, within 90 days from the date the Notice is given and on the terms and conditions stated in the Notice, sell or exchange that Membership Interest to the offeror named in the Notice. Unless the requirements of Section 9.2 are met, the offeror under this section shall become an Assignee, and shall be entitled to receive only the share of Profits or other compensation by way of income and the return of Capital Contribution to which the assigning Member would have been entitled. 9.4. On the happening of any of the following events (Triggering Events)with respect to a Member, the Company and the other Members shall have the option to purchase all or any portion of the Membership Interest in the Company of such Member (Selling Member) at the price and on the terms provided in Section 9.8 of this Agreement: (a) the death or incapacity of a Member or of Jack D. Burns; (b) the bankruptcy of a Member; (c) The winding up and dissolution of a corporate Member, or merger or other corporate reorganization of a corporate Member as a result of which the corporate Member does not survive as an entity; (d) the withdrawal of a Member; or (e) except for the events stated in Section 9.5, the occurrence of any other event that is, or that would cause, a Transfer in cpntravention of this Agreement. Each Member agrees to promptly give Notice of a Triggering Event to all other Members.. 9.5. Notwithstanding any other provisions of this Agreement: (a) If, in connection with the divorce or dissolution of the marriage of a Member or of Jack D. Bums, any court issues a decree or order that transfers, confirms, or awards a Membership Interest, or any portion thereof, to a Member's or Jack D. Burn's spouse (an Award), then, notwithstanding that such transfer would constitute an unpermitted Transfer under this Agreement, that Member or Jack D. Burns shall have the right to purchase from his or her former spouse the Membership Interest, or portion thereof that was so transferred, and such former spouse shall sell the Membership Interest or portion thereof to that Member at the price set forth in Section 9.8 of this Agreement. If the Member has failed to consummate the purchase within 180 days after the Award (the Expiration Date), the Company and the other Members shall have the option to purchase from the fonner spouse the Membership Interest or portion thereof pursuant to Section 9.6 of this Agreement;provided that the option period shall commence on the later of(1) the day following the Expiration Date, or(2) the date of actual notice of the Award. 30111033/192285-1 12 JUL-10-2006 MON 09;21 AM SECURITY PACIFIC FAX NO, 510 222 8776 P, 16 (b) If,by reason of the death;of a spouse of a Member, any portion of a Membership Interest is transferred to a Transferee other than(1) that Member or (2) a trust created for the benefit of that Member(or for the benefit of that Member and any combination between or among the Member and the Member's issue) in which the Member is the sole Trustee and the Member, as Trustee or individually possesses all of the Voting Interest included in that Membership Interest, then the Member shall have the right to purchase the Membership Interest or portion thereof from the estate or other successor of his or her deceased spouse or Transferee of such deceased spouse, and the estate, successor, or Transferee shall sell the Membership Interest or portion thereof at the price set forth in Section 9.8 of this Agreement. If the Member has failed to consummate the purchase within 180 days after the date of death(the Expiration Date), the Company and the other Members shall have the option to purchase from the estate or other successor of the deceased spouse the Membership Interest or portion thereof pursuant to Section 9.6 of this Agreement;provided that the option period shall commence on the later of(1) the day following the)expiration Date, or(2) the date of actual notice of the death. 9.6. On the receipt of Notice by the other Members as contemplated by Section 9.1, and on receipt of actual notice of any Triggering Event (the date of such receipt is hereinafter referred to as the"Option Date"), the Manager shall promptly give notice 4,f the occurrence of such a Triggering Event to each Member, and the Company shall have the option, for a period ending 30 calendar days following the determination of the purchase price as provided in Section 9.8, to purchase the Membership Interest in the Company to which the option relates, at the price and on the terms provided in Section 9.8, and the other Members, pro rata in accordance with their prior Membership Interests in the Company, shall then have the option, fora period of 30 days thereafter, to purchase the Membership Interest in the Company not purchased by the Company, on the same terms and conditions as apply to the Company. If all other Members do not elect to purchase the entire remaining Membership Interest in the Company, then the Members electing to purchase shall have the right,pro rata in accordance with their prior Membership Interest in the Company, to purchase the additional Membership Interest in the Company available for purchase. The transferee of the Membership Interest in the Company that neither the Company nor a Member purchases shall hold such Membership Interest in the Company subject to all of the provisions of this Agreement. 9.7. No Member shall participate in any Vote or decision in <uiy matter pertaining to the disposition of that Member's Membership Interest in the Company under this Agreement. 9.8. Subject to Section 9.3(a), the purchase price of the Membership Interest that is the subject of an option under this Agreement shall be the Fair Market Value of such Membership Interest as determined under this Section 9.8. Each of the selling and purchasing parties shall use his, her, or its best efforts to mutually agree on the Fair Market Value. If the parties are unable to so agree within 30 days of the date on which the option is first exercisable (the Option Date), the parties shall use their best efforts to mutually agree on the appointment of a single appraiser, whose appraisal of the Membership Interest shall be the Fair Market Value and the purchase price hereunder. In the event that the parties cannot agree on a single appraiser within thirty (30) days of the Option Date, the selling party shall appoint, within 40 days of the Option Date, one appraiser, and the purchasing party shall appoint within 40 days of the Option Date, one appraiser. The two appraisers shall within a period of five additional days, agree on and appoint S0111031/192286-1 13 JUL-10-2006 MON 09:22 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 17 an additional appraiser. The three appraisers,shall, within 60 days after the appointment of the third appraiser, determine the Fair Market Value of the Membership Interest in writing and submit their report to all the parties. The Fair Market Value shall be determined by disregarding the appraiser's valuation that diverges the greatest from each of Che other two appraisers' valuations, and the arithmetic mean of the remaining two appraisers' valuations shall be the Fair Market Value: Each purchasing party shall pay for the services of the appraiser selected by it, plus one-half of the fee charged by the third appraiser. The option purchase price as so determined shall be payable in thirty-six (36) equal monthly installments of principal and interest, commencing on the first day of the month following the later of(1) the Company's or (2) the remaining Members' exercise of their option to purchase the Membership Interest pursuant to Section 9.6, with interest payable at 8%. The agreement to purchase, and any note executed in connection with such purchase, shall be secured by an assignment to the selling party of the purchased Membership Interest. 9.9. Except as expressly permitted under Section 9.2, a prospective transferee (other than an existing Member) of a Membership Interest may be admitted as a Member with respect to such Membership Interest (Substituted Member) only (1) an the unanimous Vote of the other Members in. favor of the prospective transferee's admission as a Member, end (2) on such prospective transferee's executing a counterpart of this Agreement as a party hereto. Any prospective transferee of a Membership Interest shall be deemed an Assignee, and, therefore, the owner of only an Economic Interest until such prospective transferee has been admitted as a Substituted Member. 9.10. Any person admitted to the Company as a Substituted Member shall be subject to all provisions of this Agreement. 9.11. The initial sale of Membership Interests in the Company to the initial Members has not been qualified or registered under the securities laws of any state, or registered under the Securities Act of 1933, as amended, in reliance upon exemptions from the registration provisions of those laws. No attempt has been made to qualify the offering and sale of Membership Interests to Members under the California Corporate Securities Law of 1968, as amended, also in reliance upon an exemption from the requirement that a permit for issuance of securities be procured. Notwithstanding any other provision of this Agreement, Membership Interests may not be Transferred or Encumbered unless registered or qualified under applicable state and federal securities law or unless, in the opinion of legal counsel satisfactory to the Company, such qualification or registration is not required. The Member who desires to transfer a Membership Interest shall be responsible for all legal fees incurred in connection with said opinion. ARTICLE X: DISSOLUTION AND WINDING UP 10.1. The Company shall be dissolved on the first to occur of the following: (a) The death, incapacity, or withdrawal of a Member; or the bankruptcy or corporate dissolution of a Member; provided,however, that the remaining Members may, by the Vote of a Majority of Members within 90 days of the happening of that event, Vote to continue SO1I1033/192285-1 14 JUL-10-2006 MON 09:22 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 18 the Company, in which case the Company shall not dissolve. If the remaining Members fail to so Vote, the Manager and/or the remaining Members shall wind up the Company. For purposes of this Paragraph (a), in determining a Majority of Members, the Percentage Interest of the Member who has died, become incapacitated, withdrawn, or who has become bankrupt or dissolved shall not be taken into account. (b) The expiration of the term of existence of the Company. (c) The written agreement of all Members to dissolve the Company. (d) The sale or other disposition of substantially all of the Company assets. (e) Entry of a decree of judicial dissolution pursuant to California Corporations Code section 27351. 10.2. On dissolution of the Company, the Company shall engage in no further business other than that necessary to wind up the business and affairs of the Company. The Manager, subject to the limitations set forth in Article V, Section 5.4, and/or the Members who have not wrongfully dissolved the Company shall wind up the affairs of the Company. The Persons winding up the affairs of the Company shall give written Notice of the commencement of winding up by mail to all known creditors and claimants against the Company whose addresses appear in the records of the Company. After paying or adequately providing for the payment of all known debts of the Company (except debts owing to Members) the remaining assets of the Company shall be distributed or applied in the following order of priority: (a) To pay the expenses of liquidation. (b) To repay outstanding loans to Members. If there are insufficient funds to pay such loans in frill, each Member shall be repaid in the ratio that the Member's respective loan,together with interest accrued and unpaid thereon,bears to the total of all such loans from Members, including all interest accrued and unpaid on those loans. Such repayment shall first be credited to unpaid principal and the remainder shall be credited to accrued and unpaid interest. (c) Among the Members in accordance with the provisions of Article IV, Section 4.7. 10.3. Each Member shall look solely to the assets of the Company for the return of the Member's investment, and if the company property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return the investment of any Member, such Member shall have no recourse against any other Members for indemnification, contribution, or reimbursement. 50111033/192285-1 - 15 JUL-10-2006 MON 09 22 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 19 — ARTICLE XI:;ARBITRATION 11.1. Any action to enforce or interpret this Agreement or to resolve disputes between the Members or by or against any Member shall be settled by arbitration in accordance with the rules of the American Arbitration Association. Arbitration shall be the exclusive dispute resolution process in the State bf California, but arbitration shall be a nonexclusive process elsewhere. Any party may commence arbitration by sending a written demand for arbitration to the other parties. Such demand shall set forth the nature of the matter to be resolved by arbitration. Arbitration shall be conducted in Contra Costa County, California. The arbitrator shall apply the substantive law of the State of California to the resolution of the dispute. The parties shall share equally all initial costs of arbitration. The prevailing party shall be entitled to reimbursement of attorney fees, costs and expenses incurred in connection with the arbitration, including those incurred to enter and/or confirm any arbitration award in a court of competent jurisdiction and/or to enforce any judgment. All decisions of the arbitrator shall be final, binding, and conclusive on all parties. Judgment may be entered upon any such decision in accordance with applicable law in any court having jurisdiction thereof. ARTICLE XII: GENERAL PROVISIONS 12.1. This Agreement constitutes the whole and entire agreement of the parties with respect to the subject matter of this Agreement, and it shall not be modified or amended in any respect except by a written instrument executed by all the parties. This Agreement replaces and supersedes all prior written and oral agreements by and among the Members or any of them. 12.2. This Agreement maybe executed�in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 12.3. This Agreement shall be construed and enforced in accordance with the internal laws of the State of California. If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the of extent such invalidity,illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect. 12A. This Agreement shall be binding on and inure to the benefit of the parties and their heirs, personal representatives, and permitted successors and assigns. 12.5. Whenever used in this Agreement, the singular shall include the plural, the plural shall include the singular, and the neuter gender shall include the male and female as well as a trust, firm, company, or corporation, all as the context and meaning of this Agreement may require. 12.6. The parties to this Agreement shall promptly execute and deliver any and all additional documents, instruments, notices, and other assurances, and shall do any and all other S 0111033/192265-1 16 JUL-10-2006 f10N 09:22 AN SECURITY PACIFIC FAX NO, 510 222 8776 P, 20 � j If4�f•{. � acts and things,reasonably necessary in conneq'tion with the performance of their respective obligations under this.Agreement and to carry out the intent of the parties. 12.7. Except as provided in this Agreement, no provision of this Agreement shall be construed to limit in any manner the Members in the carrying on of their own respective business or activities. 12.8. Except as provided in this Agreement, no provisions of this Agreement shall be construed to constitute a Member, in the Member's capacity as such, the agent of any other Member. 12.9. Each Member represents and warrants to the other Members that the Member has the capacity and authority to enter into this Agreement. 12.10. The Article, section, and paragraph titles and headings contained in this Agreement are inserted as a matter of convenience and for ease of reference only and shall.be disregarded for all other purposes, including the construction or enforcement of this Agreement or any of its provisions. 12.11. This Agreement may be altered, amended, or repealed only by a writing signed by all of the Members. 12.12. Time is of the essence of every provision of this Agreement that specifies a,time for performance. 12.13. This Agreement is made solely fns the benefit of the parties to this Agreement and their respective permitted successors and assigns, and no other person or entity shall have or acquire any right by virtue of this Agreement. 12.14. The Members intend the Company to be a limited liability company under the Act. No Member shall take any action inconsistent with the express intent of the parties to this Agreement. ARTICLE XIII: INDEMNIFICATION AND ARBITRATION 13.1. The Company shall have the power to indemnify any Person who was or is a party, or who is threatened to be made a party, to any litigation, arbitration or other proceeding by reason of the fact that such Person was or is a Member,Manager, Officer, employee, or other agent of the Company, or was or is serving at the request of the Company as a director, Officer, employee, or other agent of another limited liability company, corporation, partnership,joint venture, trust, or other enterprise, against defense costs, expenses,judgments, fines, settlements, and other amounts actually and reasonably incurred by such Person in connection with such proceeding, if such Person acted in good faith and in a rnamier that such Person reasonably believed to be in the best interests of the Company, and, in the case of a criminal proceeding, such Person had no reasonable cause to believe that the Person's conduct was unlawful. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo 50111033/19:285-1 3.7 JUL-10-2006 MON 09 23 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 21 [7- contendere or its equivalent, shall not, of itself,;create a presumption that the Person did not act in good faith and in a manner that such Person reasonably believed to be in the best interests of the Company, or that the Person had reasonable cause to believe that the Person's conduct was unlawful. To the extent that an agent of the Company has been successful on the merits in defense of any litigation, arbitration or proceeding, or in defense of any claim, issue, or matter in any such litigation, arbitration or proceeding, the agent shalt be indemnified against expenses actually and reasonably incurred in connection with the litigation, arbitration or proceeding. In all other cases, indemnification shall be provided by the Company only if authorized in the specific case by aMajority of Members. "Agent," as used in this Section 13.1, means a trustee or other fiduciary of a plan, trust, or other entity or arrangement described in Corporations Code section 207(f). Expenses of each Person indemnified under this Agreement actually and reasonably incurred in connection with the defense or settlement of litigation, arbitration or other proceeding may be paid by the Company in advance of the final disposition of such prgeeeding, as authorized by the Members who are not seeking indemnification or, if there are none, by a Majority of the Members, upon receipt of an undertaking by such Person to repay such amount unless it shall ultimately be determined that such Person is entitled to be indemnified by the Company. "Expenses," as used in this Section 13.1, includes, without limitation, attorney fees and expenses of establishing a right to indemnification, if any under this Section 13.1. IN WITNESS WHEREOF, the parties have executed or caused to be executed this Agreement on the day and year first above writtkn. The Burns Family 1996 Trust, Member By: l�. c- - Jack D. Burns, Special Trustee 9��Torretta, Member SPOUSAL CONSENT The undersigned are the spouses of Gary Torreta and Jack Bums, Jr., respectively, and each acknowledges that she has read the foregoing Agreement dated March_, 2001, and understands its provisions. Each of the undersigned is aware that, by the provisions of the Agreement, she and her spouse have agreed to sell or transfer all her Membership Interest in the Company, including any community property interest or quasi-community property interest, in S0111033/192ze5-1 1$ JUL-10-2006 MON 09:23 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 22 accordance with the terms and provisions of the Agreement. Each of the undersigned hereby expressly approves of and agrees to be bound by the provisions of the Agreement in its entirety, including, but not limited to, those provisions relating to the sates and transfers of Membership Interests and the restrictions thereon. If either or both of the undersigned predeceases her spouse when her spouse owns any Membership Interest in the Company, she hereby agrees not to devise or bequeath whatever community property interest or quasi-community property interest she may have in the Company in contravention of the Agreement. Date: 12001 Reg Torretta Date: 12001 Kristina Burns 50111033/192385-1 7.9 1UL-10-2006 MCN 09:23 AM SECURITY PACIFIC FAX NO, 510 222 8776 P. 23 EXHIBIT A TO OPERATING AGREEMENT FOR PACIFIC NORTHWEST SERVICES, LLC a California Limited Liability Company ARTICLES OF ORGANIZATION Sol 11033(192295-1 20 JUL-10-2006 NON 09:23 AN SECURITY PACIFIC FAX N0. 510 222 8776 P. 24. ,y EXITIBIT B TO OPERATING AGREEMENT FOR PACIFIC NORTHWEST SERVICES, LLC a California Limited Liability Company CAPITAL CONTRIBUTIONS Of MEMBERS Amount of Member Name Calsita] Contribution Form of Contij n ti n The Burns Family $100 Cash 1996 Trust Gary Torretta $100 Cash S0111033/192285 .1 21 Pacific Northwest Services 3223 Blume Drive Richmond, CA 94806 June 30, 2006 Re: 5586 San Pablo Dam Road El Sobrante, CA To Whom It May Concern: This is to verify that Patricia Johnson is the manager of Pacific Northwest Services and is authorized to sign on our behalf as stated in the attached Articles of Organization. Do not hesitate to call should you have any questions. I may be reached at (510) 662-8502. Sincerely, O%eA101-a- Jack Burns Jr., Member mc a Al 1 ` a a = 1 b "xy� a �� i N b 0 -- OR y - lie 61 , dw ilk. MOD Hell c . b kg gyyy y� �y5 ` 6 .��,� . w tl � + . qill wileOgg . b b� o alla $$ a al felit j I �{ �k ?a , ili$ � < � s ids (���(' y ' fn - <� W N <b e W LR RWI @� 1 Q . 3�E *� III ilk sad $ b .w lit .41 ill pq, jbi i R holatil N IkeNXISIfil :�'t I ff ' _RI iL I failm ill k a� 4<.WRb C � if p Nla d � . 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Sales Tax 100300; 0637 3.348, Sale:of Prints. ,004530,; 9931 REV 6GO685 112435 e: W026 6A0026, . ., 224:75 Sale>of Plans &Specs 004500 GA0196 71.34; ZI 06=11579 'BA 33657 003520 9660 560053 794:20 ,zl Rent.,10ymt .000678: 9191 . 6135575 , 3,815.00„ Sutip'oena;lVlariel:Hernand'ez ;004504,;.9975 3500 Inv,9;12673 ;Cook . y 000672-;9755 REV- 60,27.09 . - 2,362.40;. MS 04 0025„Base Ma Fee 001600 9606 p 56:00: ` DA 73;Drainage Fee 00756719140 996;00 . r t Plan Check Overages 000651 9666 REV 6L0073 1,000:00 ,rte ,.., ,-5 n'rv.•;..t yuva x-. Hydrology;Consult .007505. '.9895 61#8275 700.00,;, .., .. :a. ns:as+.e+rc,-i:•.a eacxnrno -.xy. . x. ar..: u„«-..w.+w .,...,,...: .,. ..,.,..* - .,.. _ .,,..,.. .».. ... Trust Fund 000649=:8665 ;819800::.0800 1,6000611, Explanation TOTAL $ 19J9452 ,..r.,. 3• .,b. Eng.,Svcs G1221626-f01221630 DE'Po`siT Deposit consists oft following items Acctng ,,131221905 61221912.,:,., , Co nd CURRENC.Y. Records 131221465 131221483' „ ' c.HEc s MO.,ETC. $ 19,140:55,_; es: 912756,.912760,912755,912711,,912673, BA 33657 , BANK DEaosirs , FOR AUDITOR-CONTR_OLLER'USE ONLY DEPOSIT PERMIT_ DP . , ., NUMBER. . DATE, ASSIGNED :. _• . :. The amount of"money described above IsLfoi Treasurer,s=receipt of.above amount �Receipt of above amount is hereby acknowledged:- dj poopsit Into the County Treasury. bAje USigned: Signed: , Title:Acct. Clk.Adv tXT.3-2344 Deputy County Auditor Depury CouniY Tr easurer D-34 Rev. 7-93) n , I . ri(-a lob 1#_.S.JC, -rrr 6 F 3rM 0649-9665 / 112300: G1221626, MS 04-0025, Inspection Deposit, $8,000.00, Pacific Northwest Services, 3223 Blume Dr., Richmond 819800-0800: G1221626, MS 04-0025, Cash Bond, $1,000.00, Pacific Northwest Services, 3223 Blume Dr., Richmond ' � v Subdivision: MS 040025_ Bond No.: 4359414 Premium: $2.448.00 Any claim under this Bond should be sent to the following address: SureTec Insurance Company 3033 5th Ave.Suite 300 San Diego,CA 92103 IMPROVEMENT SECURITY BOND FOR SUBDIVISION AGREEMENT (Performance,Guarantee and Payment) (Gov.Code,§§66499-66499.10) _ 1. RECITAL OF SUBDIVISION AGREEMENT, The Principal has executed an agreement with the County of Contra Costa(hereinafter County")to install and pay for street,drainage and other improvements in Subdivision ms 040025_as specified in the Subdivision Agreement,and to complete said work within the time specified for completion in the Subdivision Agreement,all in accordance with State and local laws and rulings thereunder in order to satisfy conditions for filing of the Final Map or Parcel Map for said subdivision. Under the terms of the Subdivision Agreement,Nncipal is required to furnish a bond to secure the faithful performance of the Subdivision Agreement and payment to laborers and materialmen. 2. OBLIGATION. Pacific Northwest Services as Principal, and SureTec Insurance Company a corporation organized and existing under the laws of the State of TX and authorized to transact surety business in California,as Surety,hereby jointly and severally bind ourselves,our heirs,executors,administrators,successors and assigns to the County of Contra Costa,California to pay ir. (A. Performance and Guarantee) Ninety Seven Thousand Nine Hundred Dollars (S 97,900.00 ) for itself or any city assignee under the above Subdivision Agreement. (B. Payment) Forty Nine Thousand Four Hundred Fifty _ Dollars S 49,450.00 )to secure the claims to which reference is made in Title Xv(commencing with Section 3082)of Pan4 of Division III of the Civil Code of the State of California. 3. CONDITION. This obligation is subject to the following condition. A. The condition of this obligation as to Section 2.(A)above is such that if the above bounded Principal,his or its heirs,executors, administrators,successors or assigns,shall in all things stand to and abide by,and well and truly keep and perform the covenants,conditions and provisions in the said agreement and any alteration thereof made as therein provided,on his or their pan,to be kept and performed at the time and in the manner therein specified,and in all respects according to their true intent and meaning,and shall indemnify and save harmless file County of Contra Costa(or city assignee),its officers,agents and employees,as therein stipulated,then this obligation shall become null and void:otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor,here shall be included costs and reasonable expenses and fees,including reasonable attorney's fees,incurred by the County of Contra Costa(or city assignee)in successfully enforcing such obligation,and to be taxed as costs and included in any judgment rendered, B. The condition of this obligation,as to Section 2(B)above,is such that said Principal and the undersigned as corporate suety are held firmly bound unto the County of Contra Costa and all contractors,subcontractors,laborers,materialmen and other persons employed in the performance of the aforesaid Subdivision Agreement and referred to in the aforesaid Civil Code for materials furnished or labor thereon of any kind,or for amounts due under the Unemployment Insurance Act with respect to this work or labor,and that the Surety will pay the same in an amour not exceeding the amount hereinabove set form, and also in case suit is brought upon this bond,will pay,in addition to the face amount dowel,costs and reasonable expenses and fees,mobbing reasonade attorney's fees,incurred by the County of Contra Costa(or city assignee)in successfully enforcing such obligation,to be awarded and fixed by the court,and to be taxed as costs and to be included in the judgment therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons,companies,and corporations entitled to file claims under Title 15(commencing with Section 3082)of Part 4 of Division 3 of the Civil Code,so as to give a right of action t0 hem or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed,then this obligation shall become mll and void:otherwise it shall be and remain in full force and effect. C. No change,extension of time,alteration,or addition to the terms or said Subdivision Agreement or the work to be performed thereunder orany plan or specifications of saidwork,agreed b by the Principal and the County of Contra Costa(e city assignee)shall relieve any Surety from liability on this bond,and consent is hereby given to make such change,extension of time,alteration or addition without further notice to or consent by Surety,and Surety hereby waives the provisions of Civil Code Section 2819 and holds itself bound without regard to andindopendently of any action against the Principal whenever taken. SIGNED AND SEALEDon March 21 sit ,2p 007, Principal: Pacific Northwest Service Surety: SureTec Insurance Cornpany 3223 Blurne Dr. 3033 5th Ave.#300 Address: Address: Richmond,CA Zip: 94806 San Diego,CA ,} 7,0_921U3 - Prinf Name: _ V_1 e/� Prir ame__ James R Olsen Title: Y ✓l _ —_._-- itle: Attorney-in-fact (Nota HII signatures muss be acknowledged. For corporations,two officers most sign. The first signature must be that of to chairman of he boars,presbenL rr cigrprlsloenb the second signature must be that of the secretary,assistant secretary,chief financial officer,or assistant treasurer.(Civ.Code,§1190 and Corps.Code,§313.)) Form Approved by County Counsel [Rev.11061 iA raV*dn,45eceund.106.wp4 POA a: 510031 SureTee Insurance Company LIMITED POWER OF ATTORNEY Know All Men by 77rese Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the,laws of the State of Texas; and having its principal office in Houston,Harris County,Texas,does by these presents make,constitute and appoint James R. Olsen of Canoga Park,CA its true and lawful Attorney(s)-in-fact, with-full power and authority hereby conferred in its name,place,and:stead,to execute, acknowledge and deliver any and all bonds,recognizances,:undertakings: or, .other instruments or contracts of suretyship to include waivers toahe conditions of contracts and,consents of,surety; providing the bond penalty:does not exceed Five Million Dollars and no/100($5,000,000.00) and io.bind the Company thereby as fully and to the same extent as if such bonds were signed by the President,sealed with.the corporate seal of the Company and duly attested by its Secretary,hereby ratifying and confirming all that the sai&Attorney(s)-in-Fact may do in tee premises, Said appointment shall continue in force:until 10/31/O8 and..is made under and by authority of the following resolutions of,the Board of Directors of the SureTec Insurance Company:. Be it Resoived,that the President,any Vice-President,any Assistant Vice-Presidem,any Secretary or any,Assistant:Secretary shall be and is hereby vested with-full power and authority to appoint any one or more suitable persons as Attorneys)-in-Fact to represent and act.for and on .behalfofthe Company subject to the following provisions: Attorney-in-Factmay be given full power,and authority for and in the name of and of:behalf of the Company,to:execute,.acknowledge and deliver,any and all bonds;recognizances,contracts,agreements or indcumity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder; and.any such instruments so executed by any such Attomey-in-Fact shall be'binding upon the Company as if signed by the President andsealed and efl'ecte&by the Corporate Secretary. Be it Resolved,thatthe signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile;and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and,binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted ata meeting field on 20"of April.. 1999) In Witness Whereof,SURETEC INSURANCE COMPANY has caused these presents to be signed by its President and its corporate seal to be hereto affixed this 20th day of June,A.D.2005. ITEC 1SURANCE COMPANY ti Xov By: B.J.ICi g, reside t State of Texas ss: �� ! County of Harris On.this 20th day of June, A.D.2005 before me personally came B.J.King, to me known,who, being by:me duly swom,did deposee and say, that he, resides in Houston, Texas, that he is President of SURE,TEC INSURANCE COMPANY, the company described:in,and which executed the above instrument;that he knows the seal of said'.Company;that the seal affixed to said instrument is such Corporate seal;that it was so affixed by order of the Board'of Directors of said Company;and that he signed his name thereto by like order. Michelle Denny Notary Rdft 90W of Texas My Commw n Evir" Michelle Denny,Notary Pilbile August 27,200& My comnfission expires August 27,2008 1,M.BrentBeaty,Assistant:Secretary of SURETEC INSURANCE COMPANY,do hereby certify that the above and:foregoing is a trite and correct copy of a Powerof Attomey,executed 6y said Company which is still in full.force and effect;and furthermore;the resolutions of the Board.of Directors,set out in the.Poww of Attorney are in full force and e ect Given under my hand and the seal of said Compziiv a!Hcustuu,Testas:his521 t day- 20 (1i,A.D. 141,WNJ"t, J _ IiL Brent B.ea , sistanf Sec tary. Any Instrument issued in excess of:the penalty stated above is coitally voids nd without any vvafidity. For verification of the authority of this power you may coll471Sl.102-0R,%any business day between;8 00 am and 5:00 pm GST. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of CALIFORNIA } ss. County of LOS ANGELES } ss. On 3/21/2007 before me, Bryant Evan Spiegler- NOTARY PUBLIC Date Name and Title of Officer(e.g.,"Jane Doe,NOTARY PUBLIC" personally appeared James R. Olsen - ATTORNEY-IN-FACT , ® personally known tome ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity.upon behalf of which the person(s) B IVAMN acted, executed the instrument. CO^ 016894,98 -Cain XV'n"t84XlMAVa24.201 WITI hand and off ial seal. Place Notary Seal Above sig at a of P OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: �c Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer —Title(s): Top of Thumb here ❑ Partner— ❑ Limited ❑ General ® Attorney in fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer is Representing: 0 1999 National Notary Association•9350 Dc Som Ave.,P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationainotary.org Prod.No.5907 Reorder:Call'loll-Free 1-300-876-6827 STATE OF CAL A COUNTY OF On � �7 /7 / before me, ' 9 Notary Iblic,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/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the -------- person(s)acted,executed the instrument. KRIS KIRKHAM COMM.# 1696372 th WITNESS my hand and offi ' se . NOTARY PUBLIC-CALIFORNIA ®' CONTRA COSTA COUNTY My COIU EXP.OCT.25,2W ('this area for official notarial seal) DESCRIPTION OF ATTACHED DOCUMENT DES IPTION OF DOCUMENT(OPT NAL) STATE OFCALIFORNIA COUNTY OF On, before me, Notary Public,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/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s),acted,executed the instrument. WITNESS my hand and official seal. (This area for official notarial seal) DESCRIPTION OF ATTACHED DOCUMENT DESCRIPTION OF DOCUMENT OPTIONAL ;VOID MAF1TER M,;� 5120/07 4/5/07 NOAM$47.00 04-0025 Tax Collector's Office William J.Pollacek 625 Court Street Contra County Treasurer-Tax Collector Finance Building,Room 100 P.O.Box 631 Russell V.Watts Martinez,California 94553- Costa Chief Deputy Treasurer-Tax Collector 0063 (925)646-4122 County Joslyn Mitchell (925)646-4135 FAX Tax Operations Supervisor C+�STA -W I CS Date: 4/5/2007 IF THIS TRACT IS NOT FILED PRIOR TO THE DATE TAXES ARE OPEN FOR COLLECTION (R&T CODE 2608) THIS LETTER IS VOID. This will certify that I have examined the map of the proposed subdivision entitled: Tract/MS# City T.R.A. 04-0025 EL SOBRANTE 85002 Parcel#: 435-120-008-6 and have determined from the official tax records that there are no unpaid County taxes heretofore levied on the property included in the map. The 2006-2007 tax lien has been paid in full. Our estimate of the 2007-2008 tax lien, which became a lien on the first day of January, 2007 is $7,200.00 This tract is not subject to a 1915 Act Bond. If subject to a 1915 Act Bond, the original principal to calculate a segregation is The amount calculated is void 45 days from the date of this letter, unless this letter is accompanied with security approved by the Contra Costa County Tax Collector Subdivision bond must be presented to the County Tax Collector for review and approval of adequacy of security prior to filing with the Clerk of the Board of Supervisors. WILLIAM J. POLLACEK, Treasurer-Tax C II c r By: COUNTY OF CONTRA COSTA DEPOSIT PERMIT OFFICE OF COUNTY AUDITOR-CONTROLLER MARTINEZ, CALIFORNIA TO THE TREASURER: RECEIVED FROM TREASURER- TAX COLLECTOR'S DEPARTMENT ORGANIZATION NUMBER 0015 (Organization) 625 Court Street., Room 100, Martinez, CA 44553 (For Cash Collection Procedures,see County Administrator's Bulletin 105.) w " .f'S �! '-'`r ,�: airh3 �'.'.nit 5 .'fl 4.'wA,"wqw'� a7T1: ^5" �[�,q - "'" e aert^.'i"' v a;w�p L", $'. 9 `&t . DESCRIPTIONS � � �r ,,FUND/ORG SUB ACCT `TASKS OPTION ACTIVITY :� . � "rwu«'% °.3fi'a,".,+,.,. � �$ ^. �"`"F,k`Y.z, i";� Sw4x:`,rws w:raa.®shay_ ,hs" +s.:."twx,;.lw..J SUBDIVISION GUARANTEE 831400 0803 7,200.00 i I i EXPLANATION: TOTAL DEPOSIT $ 7,200.00 Review required by Contra Costa County Deposit consists of the following items: Tax Collector after 06/07/07 COIN and CURRENCY $ Subdivision Tax Guarantee Tract/ MS . 04-0025 CHECKS,M.O.,etc. $ Used to pay taxes for the fiscal year . 2007-2008 BANK DEPOSITS $ Q Cn C. 1 FOR AUDITOR-CONT11 ROL11 LER USE ONLY �ji I k1A DEPOSIT PERMIT NUMBER AND DATE Th nt of da ir3e Treasurer's recs�pt of above amount Receipt of above amount is hereby dep It into the Count u is approved. nowledged. Susan Chavez 23/07 Dept uufy-Au ' �� D�ty County Treasurer Signature Date Account Clerk-Advanced 7-2830 Title Extension Signature Signature TITC 13-34REV.t7-93) TNTC Form Date: 08125/04 i