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HomeMy WebLinkAboutRESOLUTIONS - 05152007 - 2007-261 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(313-23)6) AH:vz G:\EngSvc\BO\2007\05-15\BO-21 MS O4-0025.doc cc: Public Works-Construction ATTESTED: /7G1� !V . Q/rT/ 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 5'"Avenue,4300 By Deputy San Diego,CA 92103 RESOLUTION NO.2007/ c2o/ 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 1) 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: $9.7,900.00 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 664631 2 Subdivision: MS 0 4 0 0 2 5 Effective Date: S/fig I T Subdivider:PACIFIC NORTHWEST SERVICES Completion Period: Z THESE SIGNATURES ATTEST TO THE PARTIES'AGREEMENT HERETO: I CONTRA COSTA COUNTY SUBDIVIDER Maurice M.Shiu,Pu ik Works Director � PACIFIC NORTHWEST SERVICES Print Name �/t} RECOMMENDEDF P VAL: print Tille By: �/ ^"' t Name ng–E 5 neenng 6ennces Division Print Title FORMAPPROVED: SlhanoB.Marchesl,County Counsel NOTE:Ali signatures must bea ow gaol.IfSubdNidersincorporated,the centnad must be signed by two officers.The first signature must be that of the dairman of the board,president,or vice-president the second signature must be that of the secretary, assistant secretary,chief finandalofficer,or assistant treasurer.(Cly.Code,§119Dand Corps.Code,§313.) CERTIFICATE OF ACKNOWLEDGMENT State of California ) County of ) " On the date written below,before me,the undersigned Notary Public,personalty appeared the person(s)signing above for\ r A!11�.81��rJ personalty known to me(or proved to me on the basis of satisfactory evidence)to be the persons)whose name(s)is/are subscribed to the within Instrument a edmowledged to me thalhe/sheAhey executed Ore same in hialherlthairauthorized capacity(ies),and that by hisslhadthelrsignatura(s)on instrument the person(s),or the entity upon behalf of w !ch the person(s)acted, executed the Instrument. WITNESS my hand ant.nd official seal, ICARI J. SARTIN Dated: I O–�O Q�0 COMM.ffi 1451557 NOTARY PUBLICO CALIFORNIA ONTRA COSTA COUN Notary Public Comm.Exp.NOV.24,2007 (Notary Seal) 1, PARTIES&DATE.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: 2. IMPROVEMENTS.SubdMderagresstoInstallcertainmadImprovements(bothpubithandprivate),drainageimprovements,signs,sheettights,firehydrants,landscapingarrd such other Improvements(including appurtenant equipment)as required In the improvement pie ns 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 conformance with the Contra Costs County Ordinance Code,including future amendments thereto (hereinafter'Ordinance Codej. Subdlvidershall complete said Improvements(hereinafter"WoW)wlthin the above oompietion period from date hereof,as required by the Caflfemie Subdivision Map Ad(Gov. Code,§§66410 at seq.)in a good workmanlike manner,in accordance with accepted construction practices and In a manner equal or superior to the requirements of the Ordinance Code and rulings made thereunder,and where there is a confikt among the Improvement plans,the Conditions of Approval and the Ordinance Code,the strider requirements shall govern. i 3. IMPROVEMENTS SECURITY. Upon executing this Agreement the Subdividershati,pursuant to Gov.Code§66499 and the County Ordinance Code,provide as security to the County: A. For Performance and Guarantee:E1 ,_000 . 0 0 cash,plus additional security,In the amount of$,9 7 , 900 . 0,Qhfch together total one hundred percent(100%)of the estimated cast of the Work.Such additional securityb presented In the form of: Cash,certified check or cashier's check. Acceptable corporate surety bond. Aocepfable Irrevocable lederof credit. With this security,Subdivlderguarantees performance underthis Agreement and maintenance of the Workforons yearafter its completion and acceptance against any detective workmanship or materials or any unsatisfactory performance. B. For Payment Security in the amount 14 9 , 4 5 0. 0 0 ,which Is ffty percent(50%)of the estimated cost of the Work.Such security is presented In the form oi: Cash,certified check,or cashier's check — —Acceptable corporate surety bond. Form Approved by County Counsel Acceptable irrevocable letter of credit (Rev.91031 Page t of 2 JUL-10-2006MON 09 18 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 02 r •k V F r fit f, � 0& SECRETARY OF STATE 1, BILL JONES, Secretary of State of the State of California, hereby certify: That the attached transcript of 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 Seel of .:o the State of California this day of r APR 0 5 2009 ,t c L Secretary of State . .i Seai5tata Form CS-1 08(ray.GrSB) C)5P OU 42413 JUL-10-2006 MON 09; 19 AM SECURITY PACIFIC FAX NO, 510 222 8776 P. 03 State of California Fite#_ LD� Bill J ones FILED In the office of the Secretary of State Secretary of State of the State ofCdornia LIMITED LIABILITY COMPANY MAR 14 2001 ARTICLES OF ORGANIZATION A $70.00 filing fee must accompany this form. IMPORTANT— Read instructions before completing this form. BILL JONES,Secretary of State This Space For Filing Use Only 1. Name of the limited liabilitycompany (end the name with.the words"Limited Liability Company,""Ltd.Liabll:ty Co or the abbrevisllons"LLC"or "L.L,c") Pacific Northwest Services, L I C. 2. The purpose of the limited(lability company Is to--e ngage in any any 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 t{x] an individual residing in California, Proceed to item 4. ( J a corporation which has filed a certificate pursuant to section 1505. Proceed to item 5. 4, If an individual, California address of the agent for service otprocess: Address: 3223 Blume Drive City: Richmond State: CA Zip Code: q-4-ROA The limited liability company will be managed by: (check one) [X]ono manager [ ]more than one manager [ ]single member limited liability company ( J 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. P i� _ MA TJ A P FT T Y Signature of abbanizer Type or Print Name of Organizer 3 T//3.10l Date 10. RETURN TO: NAME M.AIJ.A PELLY, ESQ. cot;FIRM ARCHER NORRIS ADDRESS 2300 NORTH MAIN STREET, SUITE 800 CITYISTATE WALNUT CREEK, CA 94596ZIP CODE L___ SEC/STATE (REV. 12199) FORM 1-1-0"1—FILING FEE$70.00 Approved by Secretary of State I JUL-10-2006 N,ON 09; 19 AM SECURITY PACIFIC FAX N0, 510 222 8776 P. 04 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 limited liability company ("Company") under the Beverly-Killea Limited Liability Company Act. B. The Members 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 ni 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 Limited 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. 1.5. "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 S 0111033/152225-1 ], I JUL-10-2006 MON 09: 19 AN SECURITY PACIFIC FAX N0. 610 222 8776 P. 05 Company (net of liabilities secured by such contributed property that the Company is considered to assume or take"subject to"under IRC section 752) in consideration of a Percentage Interest held bylsuch 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 anEnGumbran.ce, whether or not perfected under applicable law. 1.13. "Encumbrance"means,with respect to anyMemberslup Interest, or any element thereof, a mortgage,pledge, security interest, Iien,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 Fair 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 S0111033/1�2265-1 2 I JUL-10-2006 MON 09: 19 AM SECURITY PACIFIC FAX NO, 510 222 8776 P, 06 otherwise, including a purported transfer to or from 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 11, 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 mails;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 thkPerson(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, as set forth opposite the name of each Member below: The Bums Family 1996 Trust, 50% Jack D. Bums, 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 Losses"means, for each fiscal year or other period specified in:this Agreement, an amount equal to the Company's taxable income or loss for such year or period, determined in accordance with IRC section 703(a), S 0111033/192265-1 3 I JUL-10-2006 MON 09:20 AM SECUKI'rY NACIFIC FAX N0, b10 222 8776 p, 07 1.26. "Proxy"has the meaning set forth in the first 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 Of 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, ora 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 provisio4s 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 bd 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 of process. soi17.033/192295-i 4 JUL-IU-000b 17UN Wy U Aft 6LUUK1 fY t'RUIl IU hAX NU, b1U 222 811b P. Ug n 2.5. The Company will be formed fbF the purposes of engaging in any lawful act or activity for which a limited liability company may be organized under the Beverly-Killea 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 The Officers of the Company are-Jack D. Burns, 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 Fair 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 matte additional Capital Contributions. 3.2. If a Member fails to make a requi{ed 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. S0111033/1922GS-1 5 I JUL-IU-2006 MON 09:20 AN SECURITY PACIFIC FAX N0, 510 222 8776 P, 09 -. . 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, gain, 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(ii)(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 allocations 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 s�all 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 property. 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 fnscaI 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 times 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 S 0111033/192285-1 6 I jUL-10-2006 MON 09:20 AIN SECURITY PACIFIC. FAX N0, 510 222 8776 P. 10 Percentage Interests. If such non-cash proceeds 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 JI, 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. 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 term 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 prior 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 5W( 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 cant' on the ordinary business of the Company; (b) A confession of judgment against the Company; (c) The dissolution of the Company; 50111033/192 85-1 7 I JUL-10-2006 MO09:720 SECURITY PACIFIC FAX N0, 510 222 8776 P. 11 (d) The disposition of all orsubstantial 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 malting 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 (ij 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,shall 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 11, 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. S0111033/192285-1 $ JUL-10-2006 MOIL 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 be prepared 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 attomey 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 30111033/192285-1 9 I ,NL-10-2006 MON 09:21 AM SECURITY PACIFIC FAX NO, 510 222 8776 P, 13 (h) The Books and Records Of the Company as they relate to the Company's 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 other 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 purposes. 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 50111033/192285-1 10 I I F jUL-10-2006 MON 09;21 AM SECURITY PACIFIC FAX N0, 510 222 6776 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 termination 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. 50211033/192285-Z ].1 JUL-10-2006 MON 09:21 AM SECURITY PACIFIC FAX NO, 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 cQntravention 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. Burns, 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. 30111033/1�?285-1 1.2 I JUL-10-2006 MON 09:21 AM SECURITY PACIFIC FAX N0, 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 of the occurrence of such a Triggering Event to each Member, and the Company shall have theoption, 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 Membgrslmip 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 any 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 50111033/192265-1 13 I ,JUL-10-2006 MON 09:22 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 17 an additional appraiser. The three appraisers.sljall, 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 the 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) on the unanimous Vote of the other Members in favor of the prospective transferee's admission as a Member, ind (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 pennit 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 S0111033/19 22 8 9-1 14 I JUL-10-2006 MON 09:22 AM SECURITY PACIFIC FAX NO. 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 full, 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. S0111031/192285-1 1 S JUL-10-20U6 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 of 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. 123. 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. 12.4. 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 I JUL-10-2006 MON 09:22 AM SECURITY PACIFIC FAX NO. 510 222 8776 P. 20 acts and things,reasonably necessary in connection 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 fob 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 manner 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 50111033/192285-1 1.7 I JUL-10-2006 MON 09:23 AM SECURITY PACIFIC FAX N0. 510 222 8776 P. 21 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 def=ense of any litigation, arbitration or proceeding, or in defense of any claim, issue, or matter in any such litigation, arbitration or proceeding, the agent shall 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 a Majority 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 proc=eeding may be paid by the Company in advance of the final disposition of such proceeding, 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 written. The Burns Family 1996 Trust, Member By: L 10. ,cis =&ae4zz Jack D. Burns, Special Trustee 9�1�Torretta, Member SPOUSAT., 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 50111033/1922e5-1 1 8 1 JUL-10-2006 MON 09:23 AM SECURITY PACIFIC FAX NO, 510 222 8776 P. 22 4. ..-r accordance with the terms and provisions of th4 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 sales 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 RegarfTorretta Date: , 2001 �- Kristina Bums S0111033/192295-1 19 FIUL-10-2006 MON 09:23 Al 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 soiiio33ri�zzse-i 2p I JOL-10-2006 MON 09:23 AM SECURITY PACIFIC FAX NO, 510 222 8776 P, 24 . .. . •moi Z EXHIBIT B TO OPERATING AGRVIEMENT FOR PACIFIC: NORTHWEST SERVICES, LLC a California Limited Liability Company CAPITAL CONTRIBUTIONS Of MEMBFRS Amount of Member Name Capital C.ontrihution Form of<-blitt.'hsl�tion The Burns Family $100 cash 1996 Trust Gary Torretta S100 Gash t. sol.uo33/isaaesi 21 I Pacific Northwest Services 3223 Blume Drive Richmond, CA 94806 June 30, 2006 Re: 5586 San Pablo Dam Road El Sobrante, CA To Whom It May Concern: This is to verify that Patricia Johnson is the manager of Pacific Northwest Services and is authorized to sign on our behalf as stated in the attached Articles of Organization. Do not hesitate to call should you have any questions. I may be reached at (510) 662-8502. Sincerely, Jack Burns Jr., Member N d. 5 g : �) y gbh m v b � _l � � � , gib � � b b ` y R111$ IN 111151 e e VVb a t ~ tj MIN 0 4 lit a Ilk Aw e a mill ail el v( ! s b ll � P Will Ul 1i '" a ilk b 1 5" ��1 � ���� �� . Ilk � HAIR � 4 � c'#g w .� � � ! elf / It A-1111"e 4�'' 111i 1 1 0 o y� IN I Y. Wal $ }o 1. y� y ($a� y L• < y'J� @Z do k9��<�KRG 1: �� � E�� ��c e W7 sot AGd(Cl va K`SL S0ArON.illi Nm at won.M.M1 , 3.2194"s ., 0 W7 001 lad(FO COW (AVA,o Inner,SV) Oy0lJ Ny0 070Vd NYS y g _� Ofalzl) .00ev (X"MM Wd3 Sf.i1S ,ggb► Q 7144 IIiR,ltYsf yS3SOWM AYM01Plt NR! . .. d '� ,B9 AY �p(L57. r'w d m tzri�l"T 7-- fV { IL 1 A m 4 —Grill W. $ W < S$t� 01.1 CL 1 Y 1_ nei LLA QS C*4c�< us <oo It [C J Za^O a4WW 2U' 4~ V0N�w 4� .. hx o< <qZ<Wh.L p ID Y A 8 OVO .. L- W6N�(a { COUNTY OF CONTRA COSTA DEPOSIT PERMIT OFFICEbOF COUNTY AUDITOR-CONTROLLER F MARTINEZ, CALIFORNIA G TO-THE TREASURER: RECEIVED'FROM PUbliiC Works ORGANIZATION NUMBER 650. (For Cas Ih Collection Procedures,See.County Administrator's Bulletin 105.) DESCRIPTION ' ' FUNDIORG SUB': :TASK OPTION ACTIVITY: AMOUNT ACCT: Sales,Taz 100300:. 0637` 33:48 $aie of Prints, 004530T9931 REV 6GO085 11`2:35', r Sale.of,Prints,. 6AO026, - - 224.75,; Sale of Plans'&,Spe,cs0045001 jr6AO196 71.34 ZI 06-11579 `BA 33657 003520 9660 580053_ . 7941011 w z Rent,Pymt, , 000678.` 9191 . BG5575 3,81500_ Sub'poena,ManeLHernantlez .004504 MOT Inv;912673.Cook 00067,2.; 9755 REV., 6R2708 2,362:40;, MS_04 0025'�Base Map'Fee 001600,x 9606 50:00. ' 73;'Drainage Fee 007567 9140 996x_00,, ,I "„ Plan�Check Overages 000651 9660 REV 6L0073, 11000.00 drol'o Consult` .:, 007505 9895 6F, , - Hrr.x... .. Y 9Y., .8275 _ , . 700:00' ' 0�w.Mn ,f Trust Fund': 000649? 9665 8,000:00 819800>' 0800 1,000:00: , Explanatwn ',,. TOTAL $ 19,194:52 �. I L Eri` 'Svcs: G122162 221636DEPOSIT Deposit consists-ofthe following items Acctng G12219057,G1221912-��. , yCO,�nd,CURRENCY. $ ., r i :c• i �"M1. . Records G1221465-G1221483 CPKs,M.o.,ETC. $ 19,140:55,. Invd ces. 912756,91260,912755,91 7 7 � �33667 ,� A .27.11,912673,BA saNx oEPoslTs, $ „ FOR AUDITOR CONTROLLER'USE ONLY N DEPOSIT PERMIT DP NUMBER- DATE,. rkp k Lt �e 6 SV�& . ASSIGNED The amount of money describetl above`is'for' `- '<Treasurec's receipt o"bove amount is =' 'Receipt of above'amount Is hereby acknowledged:-- deposit nto the County Treasury t Si ne i`e, ti I '!df9te '. . _ Signed. , Signed: Tltlei ACct. CU.AdV T.3-2344 r//nt' CC Deputy County Auditor Deputy County Treasurer D-34 Rev. 7-93 r1('1. 07� cs r. �CJ'y n 1 0649-9665 / 112300: G1221626, M5 04-0025, Inspection Deposit, $8,000.00, Pacific Northwest Services, 3223 Blume Dr., Richmond 819800-0800: 61221626, MS 04-0025, Cash Bond, $1,000.00, Pacific Northwest Services, 3223 Blume Dr., Richmond t 1 Subdivision: MS 040025 Bond 1 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 040075 as Specified in the Subdivision Agreement,and to complete said work within the time specified for complelion in the Subdivision Agreement,all in accordance with Slate and local laws and rulings thereunder in order to satisfy cvndilions for filing of the Final Map or Parcel Map for said subdivision. Under the terms of the Subdivision Agreement,Piincipal Is required to furnish a bond to secure the faithful performance of the Subdivision Agreement arid 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 it: (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 ($49,450 00—)to secure the claims to which reference is made in Title XV(commencing with Section 3082)of 0art4 of Division III of the Civii 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 alferalon thereof made as therein provided,on his or their pad,to be kept and performed at the hme and in the manner therein specified,and in all respects according to their true Intent and meaning,and shall Indemnify and save harmless the Comfy 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 shalt be included costs and reasonable expenses and lees,including reasonable attorney's fees,incurred by the County of Contra Costa(or city assignee)in successfully enforcing such obligation,and to be laxed 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 cr Tabor thereon of any,Find,or for amounts due undar the Unemployment Insurance Actwith respect to this work or labor,and that the Surety will pay the same in an amount not exceeding the amount hereinabove set fear, and also in case suit is brought upon this bond,will pay,in addition to the face amount Uereof,costs and reasonable expenses and fees,including seasonable amomeys 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 Cute,so as to give a right of action to hem or their assigns in any suit brought upon this bond. Should the condition of(his bond be fifty performed,then this obfigalon shad become nut and void;otherwise it shalt be and remain in full force and effect. C. No change,extension of time,alteration,or addition to the terms of said Subdivision Agreement or the work to be performed Hereunder crony plan or specifications of saidwork,agreed to by the Principal and the County of Contra Costa(a city assignee)shall relieve any Surety from liability on this bond,and consent"hereby given to make such change,extension of time,alteration or addition wtHoul 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 andindependently d any action against the Principal whenever taken. SIGNED AND SEALEDenMarch 21st _ _-PO 007 , Pacific Northwest Servic SureTec Insurance Company Principal: Surety: },Y 3223 Blume Dr. 3033 5th Ave.#300 t, ' _Address:_ Address: ______—. Richmond,CA ------ _---`—__ZI . 94806 San Uieyo,CA`_ ,:y '921U3 "till B J A—�� BvQ1, Print Name: _ Prir ante_ James R Olsen _ ---------- - ------ - Title: Y r'l trip Attorney-in-fact (Note:All signatures mus'be acknowledge J. For corporations,two oificars must sign. The first signature mus[be that of fm chairman of he board,prinui rr 07if}n51Len1:the second signature must be than of the secretary,assislanf secretary,chief financial officer,or assistant treasurer.(Civ.Code,§1190 and Corps-Code,§313.)) Form Approved by County Counsel (Rev.11061 ,wrmannwrmese�uo�s.i os.wpe D PDA tt: 510031 SureTee Insurance. Company MUTED TED POWER OF ATTORNEY Know AU Men by These,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 l 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.to the conditions of contracts and. consents of surety, providing the bond penaltydoes not exceed Five Million Dollars and no/100($5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bonds were signed by the:President,seated with the.corporate seal of the Company and duly attested by its Secretary,hereby ratifying and confirming all that the saidAttoruey(s)-in-Fact,may do in the premises, Said appointment shall continue in force:until 10/31/08 and.is made under andby authority of the following resolutions of the Board of Directors of the SureTec Insurance Company: Be it Resolved,that the President,any,Vice-President any Assistant Vice-President.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 Attorney(s)-in-Tact to represent and act for and on behalf of the Company subject to the following provisions: Attorne}-tn-Fact may be given N11 powerand 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 indemnity 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 AttomeyArt-Pact shall be binding upon the Company as if signed by the President and sealed andieffected:bythe Corporate Secretary. Be it Resolved, thatthe signature of any authorized officer and seal of the Company heretofomorf 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 aha meeting field on 20 of April,. ,1999.) In Wiiness Whereof,SURET18C INSURANCE:COMPANY has caused these presents to be signed by its President,and its corporate seal to be hereto affixed this.20th day of lune,A.D..2005. RETEC RANGE COMPANY ,ovr X q .O, BYt _ S.J.kir, 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,wwho, being by-me duly swom,did depose:and say, that he resides in Houston, Texas, that he is President of SURETEC INSURANCE COMPANY, the company described'in,and which executed the above instrument;that he knows the seal ofsaid'Company that the seal affixed to said instrument is such corporate seal,that it was so affixed by order of the Board'of Directorsofsaid Company;and that he signed his name thereto by like order. v----- Michelle Denny Notary Ptd>f10 9at0OfTOM �NLtW1F,It1�.1�+i �'1�h My COmmis ton Expires Michelle Denny,Notary P. lic August 27,2008 My commission expires August 27,2008 I,M.Brent Beaty,AssistantiSecretary of SURETEC INSURANCE COMPANY,do'hereby certify that the above and foregoing is a true and correct copy of a Powerof Attorney,executed by said Companyy,�which is still in full.force and effect;and'furthermore,the resolutions of the;Board.of Directors,set. out in the Power of Attorney.are in full force and effect Given under my hand and the seal of said Compe ty at Hcuswn,'" kas'.his yam_day 20 O^;A.D. do r- Brent Illpaly,Afsistant See tary Any Instrument Issued in excess of.the penalty state)above is+otally volt:and without any validity. For verification of the authority of this power you;rnay cell(Z13;?f12.OR^J any business day between,8:00 am and 5:00 pm CST. l 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) �WAWEVAN acted, executed the instrument. 7ft0MV nlmm O 168945& �Y YKdft-C�FcmlanfttlM AU9 24.201 WITNEhand and off' iall seal. Place Notary Seal Above ( Sigrrat8tgrotaNWT 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: 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 Natlonal Notary Association•9350 Dc Soto Avc..P.O.Box 2402•Chatsworth,CA 91313-2402•www.nationalnotary.org Prod.No.5907 Rcordcr:Cull Toll-Prw 1-300-876-6827 STATE OF CALM� COUNTY.OF On 7, >' before me, Notary ublic,personally appeared ByC ( )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. GOKRIS KIRKHAM COMM.# 1696372 1,1 WITNESS my hand and offs ' se . NOTARY PUBLIC-CALIFORNIA V9 CONTRA COSTA COUNTY MY COM EXP. OCT.2$ WO (This area for official notarial seal) DESCRIPTION OF ATTACHED DOCUMENT -/ A_�� DESMIPTION OF DOCUMENT OPT NAL) STATE-OF-CALIFORNIA 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) Ware 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 A"FTER 5120/07« 415/07 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 •;o O TA C-UT1'� 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 i OFFICE OF COUNTY AUDITOR-CONTROLLER MARTINEZ, CALIFORNIA I TO THE TREASURER: RECEIVED FROM TREASURER - TAX COLLECTOR'S DEPARTMENT ORGANIZATION NUMBER 0015 (Organization) 625 Court Street., Room 100, Martinez, CA 94553 (For Cash Collection Procedures, see County Administrator's Bulletin 105.) 8x�'yd.m6�"s" w.�raaxe �.. .,.'Yef'., 9:,".ew.'.leiEen Frerm„r4W&aswx4 r r'avtNvr t.+'r+� kfixr a,bdk ���.a��w.h% » "h...'„d=a"B I aArai•hn'�<s"`d-'�""s.e5 i+s,"'*.p a'a'�ret xM3,.te,..?.;.a xb°;�g�'fi.,''«',-.s. ,�,��in`,3°..trf�.e..�'ud�`tw"h"}ira '`a.r=S"`rt.K`�iuT T, iPs. 9. ACTIVITY WAMOUN�TsFUND/ORGY SOB ACtC.T�." TASK tlOPTIONr5N �DESCRIPTO +tussg „ � , A _r SUBDIVISION GUARANTEE 831400 0803 7,200.00 I N 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 T pn• FOR AUDITOR-CONTROLLER USE ONLY DEPOSIT PERMIT NUMBER AND DATE LiD re FP,, a )MOSZ: s Treasurer's re t of above amount Receipt of above amount is hereby is approve knowledged. /23/07 Dep t 0L"in Att � uty County Treasurer Signature Date Account Clerk-Advanced 7-2830 Title Extension Signature Signature T/TC D-34REV.(7-93) TRC Form Date: 08/25/04 i