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HomeMy WebLinkAboutTHE SIGNAL COMPANIES, INC - 1970-01-19 Ui 76331/004 I STREET DEDICATION .AND IMPROVEMENT AGRFEMENT 2 THIS AGREEMENT, made this I?e4 day of 7c_t�, a , 1970, 3 by and between CITY cF HUNYTINGTON BEACH, a municipal corporation, 4 refer-red to I,_ reafter as "City", and THE SIGNAL COMPANIES, INC. , 5 fGrmerly R-nown a- SIGNAL OIL AND GAS COMrANY, a corporation, 6 referred to hereinafter as "Signal", is made with reference to 7 the following facts: $ R E C I T A L S 9 A. Ne-;land Lease 10 Signal is the lessee of certain real property, consisting 11 of approximately 478 acres and located in the 0,ty, -referred to 12 hereafter as the "Newland Property", under a written lease dated 13 July 1, 1959, recorded on October 8, 1959, in Book 4917, page 470, 14 et seq . , Official Records of Orange Counry, California, and re- 15 recorded on October 28, 1.969, in Book 4945, page 307, et sect. , 16 Official Records of Orange County, California. Said lease Lhere- 1.7 after was amended by an amendment dated Octcober 30, 1959, recorded 18 on December 16, 1959, in Book 5018, page 132, et seq. , Official 19 Records of Orange County, and an amendment dated April 5, 1963, 20 recorded on July 3, 1963, in Book 6617, page 970, et seq. , and 21 re-recorded August 20, 1963, in Book 6684, page 84, et seq. , 22 Official Records of Orange County, Ualifornia. 23 The lessors under said lease, and their successors in 24 interest, collectively referred to hereafter as the "Newlands'", 25 were and are fee owners of the Newland Property. 26 The term of said lease, hereinafter referred to as the 27 "Newland Lease", commenced on July 1, 1959, and continues for a 28 term of fift, (50) years, with an unconditional option of Signal 29 to renew said lease for an additional term of forty-nine (49) 30I' years 31 ' The Newland Lease further grants to Signal the uncondi- 32I tional, option to pu<ch;;Ge the Newland Property, in fee, exercisabl ' I_ e ,�S Him II 1 at the end of the initial forty (40) years of such term of said 21 lease or at other stated times set forth therein. Under the 3 terms of the Newland Lease, Signal has the right to exclusive 4 possessi.on of the surface and subsurface of the property, and the 5 right to use such property for "any and all lawful purposes". 6 B. Signal-Landmark Lease 7 Land.mark. Estates, Inc. , a corporation, hereinafter referred 8 to as "Landmark", is the lessee of certain real property consist- 9I ing of approximately 277 2cx s, under a written "Ground Lease" 10 wita Signal as les�cic, dated September 30, 1969, a memorandum of 11 which was recorded on December 12, 1969, in Book 9162, page 920 12 et se Official Records of the Count• of Orange, California. q � a' g � C 131 Said Ground Lease, as amended, hereinafter will be referred to 14; as the "Signe.1-Landmark Lease", and the real property which is the. 15 � subject of said Signal-Landmark Lease hereinafter will be referred 16 . to as the "Signal-Landmark Property". The Signal-Landmark f 17� Property consists of a portion of the Newland property. 18 The term of the Signal-Landmark Lease is for approximately 19 eighty three (83) years, commencing on September 30, 1969. Said 20 ) Signal-Landmark Lease also is a purchase agreement, and uncondi- 21 tionally requires Landmark to purchase rhose portions of the 22 Signal-Landmark Property which have been. "placed under develop- 23 meat", which is defined in such Lease as the preparation by 24 Landmark of a tentative subdivision map or maps for portions of 26 the Signal-Landmark Property, wich notice to and approval by 26 Signal. The Si.gnai.•-Landmark Lease was made expressly for the 27 purpose of subdividing and developing the Signal-Landmark Property 28 by Landmark, and gives Landmark all of the rights of Signal. 29 necessary to do so, as more specifically set forth in said Lease. 30 approximately 200 acres of the Newland Property is not included 31 within the Signal-Landmark sublease. Signal proposes to develop 321 this portion of the Newland property by itself or in cooperation ! 2. I with other developers other than Landmark. This agreement deals 2 with street dedications and improvements in that area or the 3 Newland Property not subleased to Landmark. 4 C. Subdivision and Development of Newland Property 5 Signal desires to develop the Newland Property for resi 6 dential, commercial and other uses in the most expeditious manner 7 consistent with the requirements of the City. The City also 8 desires to cooperate with Signal in order to rut presently unused 9 land into desirable and productive use by providing additional 10 desirable residential and commercial facilities, and increased 11 tax and subvention revenues for the City. Such subdivision and 12 development would serve the best interests of both the City and 1.3 Signal. 141 The present dedication and provisions for improvement of 1 , streets under this agreement are necessary to permit such sub- 16 division and development of the Newland Property. The present 17 dedication of such streets prior to such subdivision and develop 18 meet also would serve the best interests of the City. 19 D. Funded Irrevocable Trust To Prevent Default In_ Newland Lease And To Guarantee Exercise Of 20 Option 10 Purchase Such Property 21 Signal entered into a written trust agreement with iii 22 Insurance and Trust Company, a corporation, referred to herein- 231 after as the "Trustee", dated February 4, 1966, a copy of which 24 is attached hereto as Exhibit "A". 25 Said Trust Agreement has been amended on September 30, 1969 26 A copy of said amendment is attached heretG as Exhibit "B". The 27 purpose of this amendment was to substitute Landmark in said tr st 28 agreement in the place and stead of Deane Properties Co. , a 29 corporation, formerly known as Deane Brothers. Deane Properties 30 Co. is a former lessee of Signal as to certain of the Newland 31 Property herein. Deane Properties Co. has quitclaimed all right, 32 title and interest in said premises to Signal. �' 3. FARM r� 1 Under the Trust Agreement as amended Signal assigned, 2 transferred and conveyed to the Trustee, in trust, for the benefit 3 of the City, among others, all of its rights, privileges and 4 options to purchase the Newland Property. All of such rights, 5 privileges and options are required to be exercised at the earliest g possible dates. The Trustee has been given the further power and 7 duty to cure any and all defaults or breaches o4 Signal under the 8 terms of the leases of such property. g The Trustee has been given the further power and duty, at 10 such time as it acquires the underlying fee interest in the 11 Newland Property, to dedicate or confirm the dedication of ease- 12 ments for public use any and all portions of such property then 13 shown as public streets on any final tract map recorded by Signal 14 or its sublessees or assigns or successors in interest, and any 15 and all portions of said property which Signal then has agreed to 16 dedicate for other public use. 17 Such trust has been funded as provided for in the trust 18 agreement to guarantee the faithful performance of all of such 19 duties , 20 E. Qrange County Superior Court Case No. 152602 211 Notwithstanding the previously stated provisions of the 22 Newland Lease and such trust, the Newlands refused to execute a y 23 certificate consenting to the preparation and recordation of a 24 final tracz map for the subdivision of any portion of the Newland ' 25 Property, required by Business & Professions Code Section 11589, 26 and the certificate required by Business & Professions Code } 27 Section 11590, offering : ertain parcels within such subdivision 28 for dedication for public street purposes. The Newlands refused 291 to execute such certificates even though the proposed dedication 30 of such parcels for public street purposes did not in any way 31 purport to dedicate the present interest of the Newlands in such 32 parcels. 4. zZI."y;yi f.w,*n..4vY e+Y1Mk Y,'.z+4'x✓: +7Ot'LM sv— NNE I 1 As a result, Signal, Deane Properties Co. and the Trustee 2 of the above referenced trust brought a civil action against the 3 Newlands in the Superior Court of Orange County, California, 4 (No. 152602) seeking declaratory relief, injunctive relief. 5 specific performance and damages, by which to compel the Newlands 6 to sign such certificates 7 F. Settlement Agreements 8 On November 27, 1967, Signal and the Trustee, Title 9 Insurance and Trust Company, executed an agreement with the 10 Newland,, which provided for the settlement of such case without 11 the necessity of trial. 12 By said agreement the term "any and all lawful purposes", 13 as used in Section V, captioned "Use of Premises", and appearing 14 on line 9 of page 4 of the Newland Lease as amended, specifically 151was agreed to include, but not be limited to, "single or multi- 16. family residential subdivisions . " It was agreed further that 17 "Signal. and Company [Title Insurance and Trust Company, as Trustee] 18 or either or both of thera or their sublessees, successors or 19 : assigns, may make dedications of any or all of their interests in 20 all or any part of the Newland property from time to time to the 21 City of Huntington Beach or any and all public utilities or 22 corporations or public entities of any type or description, by 23 consent to subdivision maps, or otherwise, as Signal andl )r t 24 Company, or their sublessees, successors or assigns, in their sole 25 and exclusive discretion, may deem appropriate or necessary, from 26 time to time, in order. for Sig-al and/or Company or their sub- 271 lessees, successors or assigns, to develop or utilize the Newland 28 Property; provided, however, that the same do not in any manner 29 provide for or constitute an express cr implied dedication of 30 interest of the Newlands in the Newland property." (Section 2(d) s 31 page 8) z 32 1 ' 5 1 . _. .:4�r ,. ,. ..;a..,<i....:..._ ..�i+c., ,�u..:wx»rzrarn7s+ct .r.-�;i-`Yx.' `M'' '.�`• r..,.. ,. - � 81 1 Said agreement further provided that the Newlands would i 2 execute any and all certificates and consents required by the 3 provisions of the Subdivision Map Act in the Business & Profession 4 Code of the State of California, and similar ordinances, rules 5 and regulations of the City of Huntington Beach or of any other 6 governmental body having jurisdiction over the Newland Property, 7 including but not limited to consents and certificates in the 8 .form attached hereto as Exhibit "C". (Paragraph 2(b) , pages 7-8) 9 It was specifically agreed, howe-er, that no such consent, 10 certificate or other application, document, letter, map or any 11 other instrument would be required of the Newlands Ly which 12 dedication would be made by the Newlands of all cr an-7 part of 13 their present or future interest in the Newland Property. 14 (Paragraph 2(c) , page 8) 151 Said agreement also provided for a dismissal without 16� prejudice of Orange County Superior. Court Case No. 152602; and 171 this case was dismissed without prejudice on December 20, 1967. 18 Although Deane Properties Co. , formerly Deane Brothers, 19 was not a party to such agreement, it was satisfied with the 20 terms of such agreement as they applied to the proposed subdivi- 21 ;ion and development of the Signal-Deane Property, and joined 22 with Signal and Title Insurance and Trust Company in requesting 23 dismissal without prejudice of such action. Signal and Deane 24 Properties Co. for that purpose entered into a separate settle- 25 ment agreement, dated November 20, 1967, by which Deane agreed 26 to be bound by the terms of such agreement between Signal, Title 27 Insurance and Trust Company and the Newlands, as they applied to 28 the proposed subdivision and development of the Signal-Deane 19 Property. Deane Properties Co. has quitclaimed all of its right, k 30 title and interest in the Newland Property to Signal. 31 32 I 6. } i i� i i I ;I Thus, all of the parties now having any record title 2 � interest in the Newland Property have agreed that Signal and its 3�f sublessees, successors or assigns, have the right to subdivide 4 j and develop the Newland Property, and t, dedicate easements in, 5 i on and across their leasehold interests therein, and by means of 6 the previously described funded irrevocable Trust guaranteeing 7 against the default and forfeiture of the Newland Lease, and also $ guaranteeing the ultimate acquisition of the full fee interest 9 ' in such easements, together with any present estate of the Trustee 10 in such easements, to provide the City of Huntington Beach with III easements for public streets or other public uses in those areas 12 l''! of the Newland Property necessary to he dedicated for such public 13 uses . 1 14 G. Bordering Medication Gf Easements For Public Streets BorderiOr Traversing The Newland Pro eeity 15 (; 16 The portions of Beach Boulevard, Adams Avenue, Newland 17 +f ;street and Yorktown Avenue within the City, which border or 18 traverse the Newland Property, are dedicated public streets, but 19 are neither dedicated nor improved to their ultimate right of way f 20 i as shown on the Master Plan of Arterial Streets and Highways of 21 the City. Said streets are defined as "Major Streets (Arterial)" i 22 in Section S.9911.6 of the Subdivision Ordinance provisions of 23 the Huntington Beach Municipal Code, and are necessary for use 24 F by the general public. 25 It is the purpose of this Agreement to provide for the 26 dedication of said easements for said streets to their t- 'timate 27 � right of way, independently of any proposed subdivision of the 3 28 }+ Newland Property, by the present dedication of easements in said a 29 undedicated portions of said streets , excepting therefrom the 30 underlying reversionary interest of the Newlands therein, and 31 by the present dedication of the future fee title to easements 32 therein, said title to become vested in the Trustee, at the r f 7 , ....i k.,ob a 1 time the option to purchase the Newland Property is exercised by 2 said Trustee, as provided in the Trust Agreement hereinabove 3 described. 4 This purpose and this agreement based thereon are not 5 prohibited by any statute, ordinance or other rule of law, and 61 specifically are not 9.n violation of any provision of the 7 Huntington Beach Municipal Code, as implementing the Subdivision 8 Map Act provisions of Business & Professions Code Section 11590. 9 The nature of the interests required to be dedicated under the 10 provisions of the Huntington Beach Municipal Code, as implement- 11 ing the Subdivision Map Act provisions of Business & Professions 12 Code Section 11590 may be leasehold interests, and need not be an 13 estate in fee simple absolute. 14 H. Power Of City To Acquire Dedicated _.blic Streets Prior To Subdivision Or Izrirovement Of Property 15 16 The City has the power to -acquire easements for the estab- 171 lishment or widening of public streets in accordance with the 18 City Masrer Plan of Arterial Streets and Highways by requiring 19 the dedication of such easements as a condition to a subdivision, 20 division of land, conditional use permit, variance, building 21 permit or use of land. The City may also resolve with Developers 22 the question of the nature and extent of dedication of easements 23 for, public streets prior to and independent of any proposed 24 subdivision or development of the property. It is in the best 25 interests of the City and Signal to resolve such quostion.s and to 26 provide for the dedication of the necessary and presently needed 27 easements for public streets surrounding and traversing the 28 Newland Property at this time regardless of whether such property 29 thereafter is subdivided or develGped as proposed. 30 1. Proposed Dedication 31 The "Major Streets (Arterial)" easements ultimately 32 required or presently needed to be dedicated will be transferred 8, , C . . 0 1 to the City and dedicated to the public use pu;_suant to the 2 provisions of this agreement, immediately upon the execution of 3 this agreement by all parties . Such transfer and dedication of 4 the easements in, on and across the Newland Property within the 5 right of way of such streets as provided on the City Master Plan 6 of Arterial Streets and Highways include all portions of such 7 streets which would otherwise be required to be dedicated as a 8 condition to any proposed subdivision or development of the 9 Newland Property. However, such dedication will be made prior 10 to and independent of any subdivisions or development of the 11 Newland Property. 12 The nature of the interest in the easements for such 13 "Major Streets (Arterial)" proposed to be dedicated hereby is 14 (1) the full present leasehold interest of Signal, reserving and 15 excepting said interest in the underlying fee and mineral rights 16 below 100' , but without right of surface eut-ry, as more specifi- 17 tally described in the deed attached hereto (Exhibit "D") ; 18 (2) all beneficial interest in the funded irrevocable trust 19 guaranteeing the acquisition and transfer to the City of a fee 20 interest in such easements, for the uses specified herein and 21 guaranteeing that no default will be made under the terms of the z 22 Newland Lease prior to such exercise of option and transfer, 23 reserving and excepting said parties ' interest in the underlying 241 fee and mineral rights below 100' but without right of surface 25 entry, as more specifically described in the deed attached hereto 26 (Exhibit "E") ; and (3) any and all present record title interest h 27 of Title Insurance and Trust Company as trustee of such trust, 28 in and to such easements, reserving and excepting said partied' 29 interest in the underlying fee and mineral rights below 100' but 301 without right of surface entry, as more specifically described in II s 31 the deed attached hereto (Exhibit "E") . 32 /lf 9. I All other streets within the proposed subdivision and 2 development of the Newland Property will be developed and main- 3 tained as "Secondary Streets (Collector)" or "Minor Streets", 4 as those terms are defined in such Section S.9911.6, except for. 5 those streets dedicated by an agreement of even date between 6 Signal and City. 7 J. Proposed Improvement Of Streets 8 After the dedication of such Najor Streets (Arterial)" 9 easements to the City, Signal proposes to improve such streets 10 from time to time as the proposed subdivision and development of 11 he Newland Property progresses, and as the need for such improve 12 ment is createu by such subdivision an6 improvement, as determined 1IV by the Planning Commission of the City. 141 Such improvements shall consist of curbs, gutters, side- 15 walks, street paving, street trees and other such. street improve- 16 ments required by the City street standards in effect at the time 17 of such subdivision or development. 18 Such improvements will be constructed and installed on all 19 portions of such streets abutting that portion of the Newland 20 Property then being subdivided or improved, plus an additional 211 portion of such streets in the eveat that the area of the Newland 22 Property being subdivided or developed is a greater proportion of 231 the total area of the Newland Property than the frontage of said 24 streets abutting such i^provements is of the total lineal 25 distance of such streets . 26 NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 271 1. Dedication of Easements for "Major Streets (Arterial)" 28 (a) Signal Dedication 29 Signal agrees to transfer and dedicate to the 30 City easements for public street purposes, within thirty (30) 31 days from the execution of this agreement, to the extent of its 32 present leasehold interests in those purtions of the Newland 10. t I Property not subleased to Landmark, which easements are located 2 within the ultimate right of way of Beach Boulevard, Adams Avenue, 3 Newland Street and Yorktown Avenue, as shown on the Master Plan 4 of Arterial Streets and Highways of the City by easement grant 5 deeds in the form and as described in those grants attached hereto 6 as Exhibits "D" and "E" and incorporated herein by this reference, 7 subject only to that certain amended Trust Agreement bc.tween 8 Signal and. Landmark as Trustors, and the Title Insurance and Trust 9 Company as Trustee, dated September 30, 1969, which is attached 10 hereto as Exhibits "A" and "B" and incorporated herein by this 11 reference, and reserving unto said dedicator .' cs interest in the 12 underlying fee propertj subject to said easements and mineral 13 rights below 1001 , but without right of surface entry as more 14 specifically described in the deeds attached hereto. 15 For convenience of reference, portions of such 16 street easements also are depicted oil the Flight of Way Map 17 attached hereto as Exhibit "F" and incorporated herein by this 18 reference; however, in the event of any inconsistency between said 19 Map and said Deed (Exhibit "D") , the description as set forth in 20 said deed shall control. 21 Those portions of such streets described in such 22 deed and depicted on such map include the full width of said 23 streets from the center lines thereof to the ultimate right of 24 way as shown on the City Master Plan of Arterial Streets and 25 Highways, which streets are shown "Major Streets (Arterial)" 1 26 on such Master Plan cf Streets . 27 (b) Title Insurance And Trust Company Dedication -108 Concurrently with the delivery of the easement 29 deeds from Signal described in the previous Section 1A hereof r 30 and on Exhibits "D" and "F", Signal shall deliver an easement 31 grant deed from Title Insurance and Trust Company, as Trustee 32 under such Trust, in the form of the deed attached hereto as 11. JIM w 1 Exh bit "E" and incorporated herein by this ref fence, as though 2 set forth at length. The property described as Parcel A and 3 Parcel B in said Exh.: i.• E is the same property described in 4 Exhibit "D" hereto. 1 A as described in the deed attached 5 as Exhibit "E" transfers to ;he City all of the present security 6 interest of said Trustee in such easements under said Trust 7 Agreement, subject to certain reservations as more specifically g described therein, but not the option given in said Trust Agree- 9 went. Parcel. B as described in. the deed. set forth as Exhibit "E" 10 transfers to the City the same easements subject to the same 11 reservations , but without other limitation, except as to the 12 option given in said Trust Agreement, and by the doctrine of 13 after acquired title will be effective immediately to transfer 14 the entire fee interest in said easements, subject to the 15 reservations set forth therein, to the City by operation of law, 16 upon the Trustee's exercising its option and consummating the i.'r purchase of the Newland Property. (c) City Acceptance of Dedication 19 ' The City agrees to accept from Signal and Title 20 Insurance and Trust Company dedication of those easements for said 21 streets by such deeds and to thereafter maintain said property as 22 a par" of the general system of City public streets . Such accep_ 23 tance shall be evidenced by a resolution of the City Council in 24 the form attached hereto as Exhibit "G" and incorporated herein 25 by this reference, within ten (10) days after delivery of such 26 deeds. Said proposed transfer and dedication has been submitted 27 to the Planning Commission of the City and reported favorably 28 on January 6, 1970, as being in conformity with the Master Flan 29 of Arterial Streets and Highways of the City, in accordance, with 30 the provisions of Government Code Section 65402. 31 From and after the acceptance by the City of 32 such dedi�;ation, Signal shall have no obligation or responsibility 12 ,i I) I! `4 for the maintenance, repair or improvement thereof, except for 2 the construction of the street improvements in accordance with 3 the provisions of paragraph 3 hereof, or for any other liability 4 with respect thereto, excr.pt as relates to the title to said 5 streets as is hereinafter_ set forth in paragraph 5. 6 2. Dedication of Interior "Seco-adary Streets Collector an Minor Streets 7 8 Signal agrees that easements for all interior "Second- 9 ary Streets (Co'llecto_)" and "Minor Streets" of any future sub- 10 division or other development of the Newland Property shall be 11 dedicated in the same manner a - the dedication of "Major Streets 12 (arterial)", in the event such property is developed in any manner 13 other than a subdivision. 14 Signal further agrees that any future subdivision or 15 development of the Newland Property shall be in such a manner 16 that any portion developed for commercial or other use requiring 17 access by the general public will front on "Major Streets 18 ) (Arterial)" or "Secondary Streets (Collector)", so thy- the 19 general public will not be :required to use any of such interior 20 streets within any subdivision for access to or from such commer- 211 cial or other areas, but will be required to, and will use only 22 such "Major Streets (Arterial)" or "Secondary Streets (Collector)" 23 for such access. 24 The City agrees that the development of any such 25 interior streets solely for the exclusive use of the lot owners, 26 their licensees, visitors , tenants and servants, and 1_ot for the 27 use by the public, is permitted by the Subdivision Map Act and 28 by the ordinances of the City, that such streets are not required t 29 to be dedicated or offered for dedication for the public use, and 30 that the City will not require dedication thereof as a condition 31 to the approval of any tentative or final subdivision map or other 32 req:sired development permit, in arty manner other than that f 13. 1 provided herein, 2 3. Improvement Of "Major Streets (Arterial)" 3 Signal agrees to improve such property described in 4 the form o{ deed attached as Exhibit "B" and depicted on the map 5 attached as Exhibit 'T", a public streets, according to the 6 schedule set forth in subparagraph (a) below, and to the extent 7 set forth in subparagraph (b) below. 8 (a) Signal agrees to improve such property, to the 9 extent described in subparagraph (b) below, according to the 10 City's standards and specifications for "Major Streets (Arterial)" 11 applicable at the time of such improvement, as a condition to the 12 approval of any subdivis_=, division of land, conditional use 13 permit or variance, or issuance of any building permit, excava- 14 ting permit-, grading permit or other permit required from the 15 City by Signal to proceed with the construction of any improvement 16 on the Newland Property. 1'7 Signal further agrees to furnish the City with 18 all surety bonds, instruments of credit, cash deposits, deposit 19 agreements or other forms of improvement security, to secure the r 20 faithful performance of such agreement, payment to the contrac;- 211 tor, his subcontractors and the persons renting equipment of 22� furnishing labor and materials for such improvement, and the main- 23 tenance of the work of such improvement for a period of one year 24 following the completion and acceptance thereof against any 25 defective work or labor done or defective materials furnished in 26 the performance of such work, which are required by the provisions 27 of Business & Professions Code Sections 11612 and 11613 and any 2811 applicable ordinances of the City in effect at the time of such 29 improvement. 30 (b) The extent to which Signal shall construct such 31 street improvements shall be the greater of the following: 32 1/! 14. 1 1 (1) All portions of such streets adjacent to 2 thp. part of the Newland Property then being subdivided or 3 developed and for which City approval of a subdivision, division 4 of land, conditional use permit, excavation permit, grading permit 5 or other permit is required; or 6 (2) The length of such streets adjacent to 7 those portions of the Newland Property which are the subject of 8 this agreement, in proportion to the ratio which the area of the 9 Newland Property then being thus improved bears to the entire 10 area of the Newland Property, excepting those portions subleased 11 to Landmark. 12 4. In the event that street improvements are required by 13 reason of this agreement, of streets not immediately adjacent to 14 areas under development, Signal may file bonds or other securities 15 with City in an amount sufficient to fund the cost of such street 16 development and defer improvement of such streets for a period of 17 not exceeding two years from the date the obl .gation to make such 18 improvements accrues . 19 5. Signal will hold the City harmless and indemnify, 20 protect and defend the City from any loss, cost or expense, 21 including the cost or expense of prosecuting or defending actions, 22 relating to the City`s title to the streets as such title is to be 23 dedicated pursuant to this agreement. f 24 6. This agreement and each and every part and provision 25 hereof shall inure to the benefit of and shall be binding upon 26 the heirs, successors and assigns of the parties hereto. 27 7. Nothing within this agreement is intended to or shall 28 change, alter, amend or modify any leases or other agreements 29 between Signal and any of its sublessees or contractors or any 30 other party. ` f 31, 8. In the event that any paragraph of this agreement, a 3.2 or any phrase, sentence, clause, or other part or provision hereof ,p 15. S 1 is declared inva� '.d .or unconstitutional by a court of competent 2 jurisdiction, such invalidity shall not affect the validity of 3 any other paragraph, phrase, clause, sentence, part or provision 4 hereof, and the parties hereto agree that they would ha-P entered 5 into this agreement notwithstanding any such partial invalidity. 6 PI IN WITNESS WHEREOF, this agreement has been executed by 8 the parties hereto by their respective officers thereu.nto duly 9 authorized as of the day and year first above written 10 THE SIGNAL COMPANIES, INC. , formerly known as 11 SIGNA OIL ND GAS COMPANY 12 1 B y 3 14 By q1,41 15 /f 16 CITY OF HUNTINGTON BEACH 17 By 181 Mayor. 191 ATTEST. 20 (7411,j 1, m 21" City Clerk 22 23 24 APPROVED AS TO FDRMV 25 DON P. BONFA City Attorney 26 � By 27 LOU ANN MARSHALL Assistant City Attorney 28 29 30 31 1 32 16. RESOLUTION NO. 3125 A RESOLUTION OF THE CITY COUNCIL OF ,l,HE CITY OF HUNTINGTON BEACH ACCEPTING THE GRANT OF CFRTAiN PROPERTY TO THE CITY OF HUNTINGTON BEACI? WHEREAS, Government Code Section 27281 provides that deeds or grants conveying interests in or easements upon real estate to a city for public purposes shall not be cppted for recordation without the consent of the grantee evidenced by a certificate or resolution of acceptance attached to or printed q on the deed or grant; and The Signal C .npanies, Inc. , a corporation, and Title In- surance and Trust Company have ten0lered certain grant deeds to the city; NOW, THEREFORE, be it resolved that the interest in real k property conveyed by the deeds attached to such agreement as Exhibits "D" and "Ell and attached hereto, hereby is a.;cepted and the city consents to the recordation of such deeds by its duly authorized officer. PASSED AND ADOPTED by the City Council of the 3ity of Huntington Beach at a regular meeting thereof helu on the 19th day of January, 1970. Mayor i I ATTEST: i. .�.ty erk APPROVED AS TO FORM: F- City A to A 1 1 Y d Res. No. r STATE OF CALIFORNIA ) COUNTY OF ORANGE' CITY OF HUNTINUTW\ BL'ACll ) I, PAUL C. J(hNES, the dttlN clecied �i. rlul> f-iccl alto acting City Clerk or tfie City of iiutatitl-0011 Bciach, arrd C.- officio Clerk of the City Council of s ai6 Cite , do lr.ev('by certify that the whole dumber of members of the City Council , t of the City of Huntington Beacfi is seven; fiat the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a .regular meeting thereof lreld on the 19th day of January 19 70 , by the rollowing vote: AYES: Councilmen: Shipley, Bartlett McCracken, Kaufman, Matney, roen, �r eeen NOES: . Councilmen: None ABSENT: Councilmen: None ••A -- f ' f City Cl*erk and -officio Clerk of the City Council of the City of flunti.ngtorr Beach , California i { k Li r � W Y • 1 OF at ,y U4 i � w f'r4 r EL 6 P4A'CEL 6 �4ReEL 3 - f�4RCEL3 + 7633-004 1 AMEND14 aNT TO TRUST AGREEMENT 2 THIS AMENMEINT to the hereinafter referred to Trust Agree 3 ment is made and entered into this 30th day of September, 1969, 4 by and between THE SIGNAL COMPANIES, INC. , formerly known as 5 SIGM1, OIL AND GAS COMPANY, a corporation, referred to hereinafter 6 as "Signal", and SIGNAL LANDMARK, INC. , formerly known as LANUKARK 7 ESTATES, INC. , a corporation., referred to hereinafter as "Lanomark'', 8 and TITLE INSUTANCF AND TI:UST COMPANY, hereinafter referred to 9 as "Trustee'",.. 10 R ; C I T A L S: 11 A. A trust agreement was made and entered into on 12 February 4, 1966, by and betweicn Signal Oil and Gas Company, a 13 corporation (now known as ""he Signal Companies, Inc.) , Deane: 14 Brothers, a corporation, hereinafter referred to as "Deane", r 1;� (Signal and Deane collectively were tr.ustors under said agree- 1.6� ment) , and Title Insurance and 'Trust Company, here.inaifter referred 17 to as "Trustee,". Said trust agreement was for the purpose of 18 facilitating the development of certain parcels of real property 19 more particularly described in said trust agreement. 20+ B. Deane has terminated its contractual and lease agree- 2Ll ments with Signal, which agreements are more particularly 22 referred to and described in said trust agreement, except as to 23 that certain 20± acre parcel of real property described as Tract 24 5575 in the City of Huntington Beach. Deane has further recorded 25 a quitclaim deed as to all parcels of real property described in 26 said trust agreement except as to said Tract 5575. Said quit- 27 claim deed was dated February 25, 1969, and recorded on April. 1, ' P8 1969 in Book 9916, pages 233 et seq. (Document No. 1527) Official 29 Records of Orange County. 30 C. Signal and Landmark have entered into certain con- 31 tractual and lease agreements with each other for .the purnos•e of 32 developing the same parcels of real property which are the 1. EtYHIB IT r rB" I subject of said trust agreement. Copies of the ground lease 2 between Signal and Landmark and the form sublease between Landmark 3 and prospective sublessees of developed lots on the Newland 4 Property have concurrently been delivered to Trustee. The ground 5 lease and sublease do not alter in any manner Ch{. Trustee's 6 obligations (or ability to perform said obligations) to the City 7 of Huntington Beach, a named beneficiary in said 1-1-ust ag eement. 8 D. Signal. and Landmark wish to amend the crust agreement 9 to substitute Landmark in the place and stead of Deane in said 10 agreement, except as to said Tract 5575, 11 NOW, THEREFORE, TIIE PARTIES HERETO AGREE AS FOLLOWS: I 12 1. The facts set forth is the Recitals herein are true 13 and correct. 3.4 2. The trust agreement referred to in Paragraph A of the 15 Rec-itals herein is hereby emended to substitute Landmark in the 16 place and stead of Deane in each and every place in said agreement 17 wherein Deane was referred to, except that said agreement shall 18 continue to apply to Deane as to Tract 5575 in the City of Hun- 19 tington Beach. , 20 3. The parties hereto agree that all legal rights , 211 obligations and duties formerly existing between Signal, Deane 22 and Trustee, except as to said Tract 5575, shall hereafter exist 23 between Signal, Landmark and Trustee, and Landmark agrees to per- 24; form all obligations formerly agreed to by Deane under said 25 original trust agreement except as expressly modified or amended 26 in this agreement; provided, however, that Deane shall continue 27 to remain obligated as to all provisions of said trust agreement ?8 as it relates to said Tract 5575. 29 4. Certain portions of the Newland Property as described 30 in said trust agreement are not subject to the Signal Landmark 31 lease. Signal and Trustee agree that such portions (hereinafter 32 known as the Newland Remainder Property) may be dedicated for 2. maw I public streets and/or other public purposes by Signai i.n order 2 to faci.l:itate the development of said property. Signal may elect 3 to dedicate a fee or an easement or other property interest in 4 said Newland Remainder Property. In the event of such a dedication 5 Trustee will concurrently dedicate (i) its security interest in 6 such property interests and in such portions of the Newland Re- 7 mainder Property as are dedicated by Signal; and (ii) make a 8 present dedication of all. of its interest it said property interest ; 9 and in such •.porCi.ons of the Newland Remainder Property as are 10 dedicated by Signal to the effect that when Trustee exercises the 11 option to purchase the entire Newland Property as provided for in 121 said trust agreement, the public entity to whom such dedications 13 were made will receive by reason of the doctrine of after acquired 14 title a fee interest in said casement or other property interest 151 so dedicated. 16 5 . In tl:1e event arty spoei_i:ied time for the performance. of , 17 any acts other than acts Deane is obligated to perforta as to said 184 Tract 5575 as set forth in the trust agreement has already passed 19 � as of the date of this agreement, Signal, Landmark and Trustee 20, shall have a reasonable time after the date of this amendment to 21 perform such acl, Thereafter, all other acts provided for in said 22 agreement shall be performed at the time and place set- forth in 23 said trust agreement. 24 6. Article IV, Section 5(e) of the trust agreement is 25 hereby amended to provide that the bond form attached hereto as 25 Exh-ibit I shall be utilized in place of the form attached to t-hc 27 original trust agreement as E.xhibit I, and each and every other 28 reference to said bond form in the original agreement is likewise 29 amended to refer to the bond form attached hereto (Exhibit I) , 30 7. Notices and remittances referred to in Article XII, 31 Subsection 5 of the original trust agreement shall be sent t6 32 the following addresses: 3. . I I f 1 Trusted : 300 Ncr-t_l- Main Stre:,t Santa Anc , Califorii ;.a 9.2702 31 Signal: 1010 Wilshire Boul-e✓ar.d `` Los Angelus , Cali ci-nia Q001.7 5 Landmar c: 1538 Norr`i Century !ioulevard Santa Ana , Californ .a 92703 6 7 8 . All other- provisions of the .origi Ia1 trust agret•ment f 8 with the exception o : the specific amendments additions and 9 modi.ficati.rns as set. forth herein. w .11- contin .•e to be in e,fiect, 10 and the en =i.re agree: Ient:, together ai.th the r) ovisions of 0A.s 11 agi-,cement:, i_s hereby confirmed and .-atified b.,• the partic: hereto . 12 9 . Signal a. cd Landmarl;. slia ,. L, within six months of the 1.3 date of th s imendme: t, deliver to i'rustee a i Iemorandum of � n 14 assignment of their loasehold inter Est in tru;,t in a form s� tis-- 15 factory to Trustee f• r recording in order for the Trustee to �' ,..... aD alut,.,u�u . 17 10. Notwiths, adding anythin : to the rcntrary provide for 18 in the tru;-t agreemei+t or amendment thereto, :,aid trust agreement: '19 as amended shall be ,pecifica7.J_y en}'orceabl-e 1 y the City of ,20 Huntington Beach. 'll IN WITNESS WI'FRE01, the par�ics have set their hands and 22 seals the ( ay and year first above urit.ten . 23 THE SIGNAL COMPAN IF S , INC. , formerly known as 34 SIGNAL O*rL AND GAS MM DANY 25 By _ �_- 6 ;7 BY ` 2.8 TITLE INSUEANCE AND SIGNAL LANDMARK, IMI , I TRUST COMPANY formerly known as 2-9 LANDMARK ESTATES , 1�C. , a corporation 1/0 By 31 By By By • e 4 . I 4i I I ( We hereby certify that we are the owners of the fee of the, 2 lands included within the subdivision shown on this map wit:-tin 3 j the blue border 'l.in,,s, and which lands are subject- to Lease., of 4 ! record, and we consent to the preparation and recordation' of said I 5 map as provided by Section 11.589 of the Busin,�ss and Professions 6 Code of tr{e State of California; provided, hoAlever, that we do 7 not thereby, or otherwise, dedicate or offer to dedicate to public 8 use our interests in any street, highway or ocher public way 9 shown on said map, nor dedicate or offer to dedicate to public 10 use or to the City of Huntington Beach our interests in any of ti 1.1 ( said lands affected by any vehicul<<r access rights , nor our 12 interests in any of said lands affected by t-h�, sanitary sevv-,r 13 system and appurtenances or the domestic water system and anpur- 14 tenances as shov,m on the i:nprovemertt plans, nor our interests in 15 and to the sub-surface water rights of any part of said 13n1s, 16 j or to the 1.50 foot easements for public utility purposes as 1.7 shown on said map. To the contrary, under Section 11590 of the 18 Business and Professions Code of the State of California, we 219 hereby expressly res^rve our entire rights and interests in all f 20 i of said lands (including specifically but not. limited to our 21 � right of reverter on termination ov forfeitura of said lease) i 22 from ally and all offers for dedication for public use whatsoever i 23 i or from ar_y other grants, express or implied, of any nature. 24 26 �1 27 28 29 30 31 f ` 32 t 1 EXHIBIT '`C" Mail Tax Statements to: CORPORATION GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE SIGNAL COMPANIES, INC. , formerly known as Signal Oil and Gas Company, a corporation organized under the laws of the State of Delaware, hereby grants to the CITY OF HUNTINGTON BEACH, a municipal corporation, an easement for street purposes upon, over and across its leasehold interest under that certain lease between Clara J. Isenor, Helen Newland Tarbox, Clinton C. Newland, Jessie E. Corbin and John D. Newland, as Co-Trustees of The W. T. Newland Trust Estate under Agreement and Declaration of Trust recorded in Book 637, page 306 of Official Records of Orange County, California, and The Signal Companies, Inc. , formerly known. as Signal Oil and Gas Company, a corporation. Said lease dated July 1, 1959, was recorded on October 8, 1959 in Book 4917 at pages 470 et seq. of Official Records of Orange County, California, and re-recorded on October 28, 1959, in Book 4945, pages 307 et seq. of such official records . Said lease was amended by amendment dated October 30, 195� , recorded December 1.6, 1959, in Book 5018 at pages 132 et seq. of such official records, and by amendment dalled April 5, 1963, recorded August 20, 1963, in Book 6684, at pages 84 et seq. of such official records. Said easement for street purposes is granted upon, over and. across the following described real property in. the City of Huntington Beach, County of Orange, State of California: (a) Those portions of the southwest one-quarter of Section 1, Township 6 South, Range 11 West, San Bernardino Base and Meridian, Orange County, California, being more particularly described as follows: Parcel 1: The north 40.00 feet of said southwest one-quarter, excepting therefrom the westerly 690 feet. Parcel 2: The east 40.00 feet of said southwest one-quarter. Parcel 3• The south 60.00 feet of said southwest one-quarter. :parcel 4• :hat portion of said southwest one-quarter lying 7. northeasterly from a curve concave to the southwest, having a radius of 32.00 feet, being tangent on the north to the south line of parcel 1 above, and being tangent on the east to the west line of parcel 2 above. i EXHIBIT "D" Parcel 5• That portion of said southwest one-quarter lying southeasterly from a curve concave to the northwest, having a radius of 32.00 feet, being tangent on the east to the west line of parcel 2 above, and being tangent on the south to the north line of parcel 3 above. Parcel 6• That portion of said southwest one-quarter lying southwesterly from a curve concave to the northeast, having r radius of 32.00 feet, being tangeric on the south to a line parallel with and 60.00 feet northerly, measured at right angles, from the south line of said southwest one-quarter, and being tangent on the west to the east right of way line of Beach Boulevard, 138.00 feet in width as now laid out, said right of way line being parallel with and 88.00 feet easterly, measured at right angles, from the west line of said southwest one-quarter. (b) Those portions of the southeast one-quarter of Section 1, 'ownship 6 South, Range 11 West San Bernardino Base and Meridian, Orange County, California, being more particularly described as follows: Parcel 7• The west 40.00 feet of the southwest one-quarter of said southeast one-quarter. Parcel 8: The south 60.00 feet of the southwest one-quarter of said southeast one-quarter. Parcel 9• That portion of said southeast one-quarter lying southwesterly from a curve concave to the northeast, having a radius of 32.00 feet, being tangent on the west to the east line of parcel 7 above, and being tangent on the south to the north line of parcel 8 above. EXCEPTING FROM each and all of the above described parcels of land all water, water rights, oil, oil rights, minerals, mineral rights, natural gas, natural. gas rights, and other hydrocarbons by whatsoaver name known that may be within or under the parcels of land hereinabove described, together witb the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or direct- ionally drill and mine from lands other than those hereinabove 2. I described, oil or gas wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, ` however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that may be constructed on said lands. FURTHER EXCEPTING from each and all of the above described par- cels of land any and all areas previously dedicated for street right of way purposes and/or other public uses. IN WITNESS WHEREOF, the Grantor has caused its corporate name and seal to be affixed hereto and this instrument to be executed by its off- cers thereunto duly authorized, Dated: THE SIGNAL COMPANIES, INC. By President (SEAL) By Secretary STATE OF CALIFORNIA) ss. COUNTY OF ORANGE j On , before me, the undersigned, a Notary Public in and for said stare, personally appeared known to me to be the President, and known to me to be the Secretary or the corporation that executed the within instrument on behalf of the corporation therein named, and acknowledged to me that such cor- poration Executed the within instrument pursuant to its b�; -laws or a resolution of its board of directors. WITNESS my hand and official seal. (SEAL) Notary Public in and for said State 3. 'fr GRANT M1I1.1) OF l h.fil1,111i 'i`ia I''Ol,11 S'i'l:I:E'] PL1I:POSES r T..1"I'Ll. INSI11'h,l CE, 1;ili) 'ITZ111ST co? l,orcri :i rnl 01- l71 i •��cl under the .i;11•:s of the St:a'tc of �',:1]7 !..I o,-n'i..1, llorcby to the City of Hun t:i.n;t:on beach, a nnm:i..,:ip:tl coy"p(7r;lt.:in17, eclGenlcnt:s for street: purposi2s upon, OV017 al)d ac ro.' ,; the fo'.11ov, i_ni dec,cribed real property :in the CiLy o:C Hun+in,Loll beach, Count), of Or«ni;c, State of California : Parcel A: The security interest of 'Title lncurrinCo and )`rust Colrtpany tn!dt'r that: certain t-ruS1 ?}:.i"C`i-we t1l. ho I:C:ooll Sii'nr11 oi.L ,11-ld Co Co;�,'wll ., a cclL hrr�_E: �-on, rML1 D0,11-le B1.Oi:he7:s, ,; corpo1-;a.jC1,1, <l:; t.; t�si o1 :, , <I-net Tit'Lu ("11SlIl'(lI1C'.C'. 111,1 `rw' (:[J;711)l i�T., ('.C)'L"))n; :',Llo,1, as trustee, i execut c>cl on i'.l�c? 11th (1,1}T o!' !'�b� t _i, , :t�:;:}6, t�h:ic�tl :.ru:>-L was ar:!cadwcl on tl1t: _ cl:sy o1= �--_---�._... �__, 19_ , to Sl)1)t L :l_t lli'(' i1.„il'1 i ;'lilUir;, ;"i:, j.nC. , t-L)1"l't'7".Ly` ]:57,)'1�Tll 8F, Landmark I',: ai-cs, iw, , in t_1)o nid StC-d of Deane in Li1L =DI].0 ;-1-n�� p)"C)i7t.Yi't. in Lll(, COUn'Ly - C i Exhibit ' � rr of Oran,;c . SLatc oi , attached ht?.1:eto z1nd by Lh:is r(A"ereiiet! inco)_po1:aLvc1 here:i.u. P a r C e ]� The prop(, ty dr,;c7::i.bcd iT1 F-,hibit "A" attached hereto and ,).> t1li s rc:fcr(')ICC? :inC01'l'C)7"2_tC'd llt'.i"Call. IN WITNESS [tiVICREOF, Title 111surrince, alid Trust Co•,alpany has caused its corporate a.-mc, ;Ind seal to be a:ffi%(,C1 he rcto and this instrument to be executed by its present and secretary thereunto duly autllo•rized. Dated: TITLE INSURANICE ANTD TRUST COMPANY By President (SEAL) By Secretary STATE OF CALIFORKA) ss, COUNTY OF OYLANGE ) M1 On before me, the undersigned, a Notary Public in and for said State, personally appeared , known to me to be- the president, and ^, known. to me to be the secretary of the corporation that executed the within instrument on behalf of: the corporation therein named, and ac}:nowledged to me that such corporation executed the within. instrunlent pursuant to its by-laws or a resolution of fts board of directors , 14ITNESS my hand and official. seal. x (STsA1,) EX]IIBIT "Ell Notary llul)lic in and far sa.ld St:;Ae (a) Those portions of the southwest one-quarter of Section 1, Township 6 South, Range 11 West, San Bernardino Base and Meridian, Orange County, California, being more particu- larly described as follows: 'arcel 1• The north 40.00 feet of said southwest one-quarter, excepting therefrom the westerly 690 feet. Parcel 2• The east 40.00 feet of said southwest one-quarter . Parcel 3: The sout'L} 60.00 feet of said southwest ore-quarter. Parcel 4: That portion of said southwest one-quarter lying north- easterly from a curve concave to the southwest, having a radius of 32.00 feet, being tangent on the north to the south line of parcel 1 above, and being tangent on the east to the west line of parcel 2 above. Parcel 5• That portion of said southwest one-quarter lying south- easterly from a curve concave to the northwest, having a radius of 32.00 feet, being tangent on the east to the west line of parcel 2 above, and being tangent on the south to the north line of parcel 3 above. Parcel 6• That portion of said southwest one-quarter lying south- westerly from a curve concave to the northeast, having a radius of 32.00 feet, being tangent on the south to a line parallel with and 60.00 feet northerly, measured at right angles, from the south line of said southwest one- quarter, and being tangent on the west to the east right of way line of Beach Boulevard, 138.00 feet in width as now laid out, said right of way line being parallel with and 88.00 feet easterly, measured at right angles, from the west line of said southwest one-quarter. (b) Those portions of the southeast one-quarter of Section 1, Township 6 South, Range 11 West, San Bernardino Base and Meridian, Orange County, California, being more particu- larly described as follows: a Parcel 7: The west 40.00 feet of the southwest one-quarter of said southeast one-quarter. 4 Parcel 8• The south 60.00 feet of the southwest one-quarter .of said southeast one-quarter. j 1 EXHIBIT "A" 1,11131MR1111111 0111,11I III!! ME! Parcel 9: That portion of said southeast one-quarter lying south- westerly from a curve concave to the northeast, having a radius of 32.00 feet, being tangent on the west to the east: line or parcel 7 above, and being tangent on the south to the north line of parcel 8 above. EXCEPTING FROM each and all of the above described parcels of land all water, water rights, oil, oil rights, minerals, mineral rights, natural gas, natural gas rights, and other hydrocarbons by whatsoever name known that may be within or under the parcels of land hereinabove described, together with the perpetual right of drilling, mining, exploring and operating therefor and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than those hereinabove described, oil or gas wells, tunnels and shafts into, through or across the subsurface of the land hereinabove described, and to bottom such whipstocked or directionally drilled wel7 <., tunnels and shafts udder and beneath or beyond the exterior Amits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines, without, however, the right to drill, mine, explore and operate through the surface or the upper 100 feet of the subsurface of the land hereinabove described or otherwise in such manner as to endanger the safety of any highway that may be constructed on said lands. FURTHER EXCEPTING from each and all of the above described parcels of land any and all areas previously dedicated for street right of way purposes and/or other public uses. EXHIBIT "A" - page 2 DECIARATTOIN OV TRUST TI9.0LE INSURArJCE Pd,�D TRUST COMPAlvnl, a California corporation, hereinafter called "TRUSTEE", and DEANS BORTHERS, a corporation, hereinafter called "TRIOSTOR", hereby declare ; 1. That the Trust created by this instrument relates to Tract , as per map recorded on the day of , 19 at Book Page of Official Records in the office of the County' Recorder for the County of Orange, State of California. t t 2. That TRUSTEE has received from TRUSTOR assignments ( of TRUSTOR'S interest under subleases described on Exhibit "A-1 to A inclusive, attached hereto and incorporated 'her eiri by reference. 3. That TRUSTOR shall hereafter at such times aL, its s _ interest in said subleases vest, transfer to _ TRUSTEE, pursuant to this Declaration of Trust, all of TRUSTOR'S interest in subleases arising out of TRUSTOR'S development of Tract i 4. That Tract consists of acres, and ! for purposes of determining; rentals and purchase payments under that certain Master Ground Lease defined in Paragraph 1•-bf Section 1 below, said acres shall be deemed "under development" as that term is understood by the terms of said Master Ground Lease.. r is 5, Thai; the TRUSTEE •till 'hold subleases assigned and transferred to it pursuant to this Declaration of Trust, IN TRUST.$ under the conditions and for the purposes hereinafter set forth. SECTION I 1. As used herein, the Term "Master Ground ,ease" shall refer 14o that certain Lease dated September 12, 1963, between SIGNAL OIL AND GAS CO. , a corporation,' as lessor. , and TRUSTOR as lessee, a memorandum of which was recorded of i the "111th day of April, 1964, in Book 700.3, page 681 of Official Records in the Office of the County Recorder, County of Orange, State of California. 2. The term "vendee", for the purposes of convenience, shall be used to designate the sublessee of a Portion of the real property subject to the terns of the aforesaid Master Ground Lease; such sub- lessee holding the said real property by way of `. an approved sublease provided for under the terms of the Master Ground Lease. 3. As used herein, the term "sublease" shall be deemed to refer to any sublease entered into pursuant to the authorization contained in the Master Ground Lease, which sublease includes a purchase agreement " as defined in Paragraph 4 below. As used herein, the term "purchase agreement" shall be deem.ed ,to refer to the agreement entered into betwebn each sublessee and TRUSTOR, as part of -2- sublease, whereby said sublessee may purchase a fee simple interest in the property subject to the sublease by making certain payments in addition to those called for in said sublease as rental payments, said additional payments to be known as "purchase payments SECTION II i A. The payments required to be made by each vendee under the terms of each sublease shalll, be con- solidated into one sublease payment and shall be paid to and received by the TRUSTEE as one remittance each month. The TRUSTEE shall establish ; . a separate account for each vendee and record therein the rental payments and, if applicable, r • the purchase payment made by each vendee, pursuant to the terms of the sublease assigned hereunder. i B. The TRUSTEE shall establish the following account: 1. Trustor 's Reserve Account i • ° C. The monthly payments received by the TRUSTEE from I: • each vendee shall be allocated to the account referred to in paragraph B above and the funds from time to time allocated to such account shall , be retained and disbursed by the TRUSTEE as follows: 1. Until the first day of March, 1909, * a.11 payments received by the TRUSTEE, shall bc: allocated to and deposited in the Trustor 's Reserve Account, and shall be distributed at intervals to TRUSTOR or upon demand of TRUSTOR, less an amount sufficient to cover TRUSTEE'S fees hereunder, and less a reasonable reserve as may be set by TRUSTOR to meet contingencies. 2, Commencing with the first day of March, 1.969, all payments received by the TRUSTEE from the vendees shall be allocated to and deposited in the Trustor 's Reserve Account, and the TRUST ' , shall. monthly transfer the funds in the Trttntor ra Reaea've Account, less an amount sufficient to cover TRUSTEE 'S fees hereunder, and less a reasonable reserve as may be set by TRUS�i'OR to meet contingencies, to Title Insurance and Trust Company as Trustee of that { certain Trust ASreement No. , dated as executed by said TRUSTEE, the i TRUSTOR hereunder and SIGNAL OIL AND GAS COMPANY, a corporation (hereinafter referred to as the "JOSTER TRUST AGREEI—itN`.i''"} . The first transfer stall be trade April 1, 1909, and thereafter, monthly so long as this trust and the MAS^7:R TRUST AGIREEiIENT shall remain in effect. Shoup he MASTER TRUST AGREEMENT terminate prior to the date of the 1 .. termination of this trust, such transfer or distribution shall be made to the then, party or parties in interest entitled thereto. SECTION III The TRUSTEE is directed as to each account established with respect to a sublease to: 1. Maintain such account records and transaction `. details as provided for in Section 2954 of the California Civil Code (or in any successor i sections thereto) where applicable. ' 2. 1,1ake such records so maintained available to the sublessee for reasonable inspection during Trustee 's business hours; - provide each sublessee with an annual st-at'emcit of his or her account within sixty (60) days after December 31st- of each year as provided fir in said Section 2951E of the Califori,ia Civil Code (or in any successor sectionsthereto) , where applicable. A reasonable service charge will be made by the Trustee for any account statement other than the above mentioned annual statement vrhich it provides pursuant; to the request of any sublessee. Such charge will be billed to the requesting sublessee and all payments for such additional statements vrill be retained by the Trustee, SECTION IV The Trustee shall notify and advise the vendee of each sublease (as such vendee is then identified on the records of the Trustee) that if tie Is not then in default under the terms of his sublease he has the right to purchase (subject to the reservations contained in said sublease) on the day of , the fee title to the premises by signing a letter of instructions to the Trustee (a copy of which letter shall be attached to the notice sent to the vendee) wherein said Trustee shall be notified of the vendee 's intention to purchase the fee title to his lot on the day of , N In- Specifically, the vendee shall be instructed by the Trustee to enclose faith said letter of instructions to Trustee the sum of thirty-five ($35,00) dollars as provided for in said sublease as the purchase payment, plus all fees, charges and expenses to be incurred to effect a transfer of title as the same are specified by the Trustee. In the event said thirty-five (035.00) dollars and an amount equal to the fees, charges and expenses as specified by said Trustee are not paid, then, the Trustee shall notify Trustor in writing of such fact and shall not be obligated to proceed further with said transfer until said fees and costs are paid. On or before the date specified in the letter of instruction referred to in Section IV by the vendee as the date of purchase of his lot, the Trustee shall notify the Trustor of the intention of the vendee so to acquire title and shall indicate to said Trustor whether or not the vendee has provided the Trustee with all fees necessary to acquire said title. SECTION V The Trustee shall, on or before any purchase date, request Title Insurance and Trust Company, as Trustee under the aforesaid Master Trust Agreement and pursuant to Article 111 3. (d) and (e) of said Agreement to deliver to the Trustee hereunder a deed covering the lot to be purchased as specified in said request. on the pu*,;:lase date, the Trustee hereunder shall 1. Deliver said deed to the vendee; • -2. Distribute. the sum of thirty-five ($35.00) dollars to the Trustor; and 3. Credit any remaining amounts to its own account. f f In order to accomplish the f oreSo-i ng transf er of title, the Trustee is authorized to adopt such reason_xble procedures as are convenient to it. SECTION VI 1. Unless funds are available in the trust or deposited with 'TRUSTEE as aforesaid, TRUSTEE, shall incur no liability or responsibility for non-payment or transfer of any funds, and shall not be obligated to cure any default.. 2. In the event of default of any terms, conver:ants or conditions of any sublease , TRUSTEE shall notify TRUSTOR, in writing, and give the notices prescribed in said subleases. In any such (.vent-, TRUSTEE shall upon i•rritten instructions of the TRUSTOR, accompanied by monies and indemnity sufficient in the judgment of TRUSTEE to cover all charges, expenses, and liabilities, take such action and proceedings as may be necessary to carry out the y provisions of the sublease, or terminate the same, and upon written directions of TRUSTOR sublet or assign said property to another Vendee, or reassign said sublease to TRUSTOR. 3. TRUSTEE shall not be concerned with moneys needed to exercise options relating; to lots not covered by subleases. SECTION VIZ 1. TRUSTEE shall have no duties, responsibilities or liabilities other than those specifically provided 1. for in this Declaration of Trust. -7- 2, The provisions of this Declaration of Trust shall bind TRUSTO R, TRUSTEE, their successors and assigns, : • 3. TRUSTEE shall -be entitled to compensation for `services as set Forth on Exhibit "B" attached hereto. f SECTION VIII This trust shall terminate not' later than seven months subsequent to the expiration of the last sub ., rLie hereunder assigned to the Trustee. SECTION IX As used In this instrument, the masculine gender includes the feminine and neuter, and the singular member includes the plvral, wherever the context so requires. DATED at , California, this clay of , 196 . T1TL% INSURANCE AND TRUST COMPANY By Try—N icer TRUSTEE DEANE BROTHERS . By • Presiden- TRUSTOR SCHEDULE' OF TRUSTEE'S S FEES ULNDLR WITUIN DECLARATION OF TRUST 1. $1.75 per rionth for each sublease, for collecting and di s- tributi_ng the monthly installment of rental and purchase payment received, if no impounds for taxes and insurance. If Trustec­is required to collect impounds, the fee will be $2.50 per month. 2. If Trustee is required to service agreements of sale, make payments on construction loans, collect impounds for taxes and insurance, and collect monthly installments on subleases, the fee schedule shall tie: $5.00 per month for col? -cting and distributing the monthly installment payment received from each property owner. 3. Minimum fee of $25.00 for each foreclosure action initiated (i.e. , service of three-day notice to quit, or execution of quitclaim deed) . Additional reasonable compensation shall be charged for any extraordinary services performed in con- nection with any foreclosure action or any other action to enforce the germs of the documents transferred to Trustee hereunder. 4. $25.00 for each sublease and/or agreement of sale reassigned on any termination or transfer of interest; if directed by the property owner or sublessee, the fee is to be paid. by the property owner or sublessee; otherwise the fee will be paid by Trustor. 5. Trustee is authorized and directed to retain as its compen- sation for the extraordinary services being performed to effect the transfer of title to buyer, the escrow fees referred to in Paragraph {�) of the Tract Trust Agreement, in addition to the other fees herein provided. b. In no event shall tie minimum mo- '_.hly• fees be less than $100.00 per month for the services rendered under each Tract Trust (i.e. , fifty (50) acres put under development) . 7;. Reasonable compensation in addition to the counsel fees and expenses for any services rendered hereunder in connection with any proceeding at law or in the preparation of income or other tax reports, and for other services of an extra- ordinary nature, provided, however, that should Trustee desire or regtair_e legal counsel concerning any matter in which Trustee is called upon to represent the interests of Trustor-Beneficiary under this Declaration of Trust, Trustee shall notify Trustor-Beneficiary, and TruF'-,or-• Beneficiary may designate the attorney or attorneys whom Trustee shall consult or retain in said matter; Trustor- Beneficiary shall be responsible for counsel fees and expenses incurred 4n connection with said matter, but said responsibility for counsel fees shall be limited to those F• t fees charged by counsel. designated by TrLIStar-Bcncf-iciary, except that if Trustor-Be.nefici_ary has not designated ' counsel withinten (10) clays after being notified by Trustee, then Trustee is free to select its own counsel, and Trustor-Beneficiary shall be responsible for counsel fees and expenses incurred in connection with said matter. 8, It is mutually understood and agreed between Trustor- Benefi.ci_ary and Trustee that -the fee schedule above out- lined is t.o cover the first ten (10) years of the operation `. of this '.Crust; at the end of said period, and each ten (10) years thereafter. , the fee schedule is to be renegotiated, to give effect- to increases or decreases, if any, in the , cost of doing business in the Trust Department at Title Insurance and Trust- Company when compared to the cost of doing, business by said Department in 1.966. SCHEDULE OF TRUSTEE'S ).-L•'ES 1. Setup Fee, payable upon ,execution of Trust Agreement $500,00. 11. For administering the Trust as Trustee until cash payments are received by Trustee pursuant to Paragraph 5 of ARTICLE IV, or pursuant to ARTICLE VI, of the Trust Agreement, a fee of $100.00 per annum, 111. Commencing with the date upon which Trustee shall receive cash payments, either pursuant to Paragraph 5 of ARTICLE IV, or ' pursuant to ARTICLE VI, an annual fee of one-half (1/2) of one percent (1`/0) of the fair market value of the foli•owing, but in no event less than $200.00 per annum: (a) The cash or securities, if any, deposited with Trustee pursuant to Paragraph 5 of ARTICLE IV; (b) The cash or securities held by Trustee in the Signal Purchase Payment Account; (c) The cash or securities held by Trustee in the Signal Rental Account equivalent to the sum arrived at by multiplying the total number of gross acres then under development by the sum of $525.00. The fees payable under this Paragraph III shall be paid monthly, such monthly payments to be equal to one-twelfth (1/12) of one;-half (1/2) of one percent (1%) of the fair market value of said amounts. The fees payable based upon the aforesaid amounts described in Subparagraphs (a) and (b) shall be payable by Signal, and the aforesaid amounts des- cribed in Subparagraph (c) shall be payable by Deane, IV. The fees payable under Paragraph III shall apply to the first ten (10) years of the term of this Trust. At the end of said period and each ten (10) years thereafter, the fee schedule is to be renegotiated to give effect to increases or decreases, if any, in the cost of doing business in the Trust Department at Title Insurance and Trust Company when compared to the cost of doing business by said Department in 1966. V. -Extraordinary Services: Reasonable compensation in adr'.ition to the counsel fees and expenses for any services hereunder in connection with any proceeding at law or in the prepa_• ition of income or other tax reports, and for other services of an extraordinary nature; provided, however, that should Trustee desire or require legal counsel concerning any matter in which Trustee is called upon to represent the interests of Trustor-Beneficiary (Signal and/or Deane, as the case may be) under this Trust- Agreement, Trustee shall notify Trustor-Beneficiary, and Trustor-Beneficiary may .'.t designate the attorney or attorneys whom Trustee shall consult or retain in said matter. Trustor-Beneficiary shall be re- sponsible for counsel fees and expenses incurred in connection with the said matter, but said responsibility for counsel fees shall be limited to these fees charged by counsel designated : by Trustor-Banefi.ciary, except that if Trustor-Beneficiary J• SCHEDULE OF TRUSTEE'S SEES (Continued) �I I• -- has not designated counsel within ten (10) days after being notified by 'iYustce, then TrUSt"ee is free to select its ovrn counsel, and Trustor-Beneficiary shall be responsible for counsel fees and expenses incurred in connection with said vatter. . •1 . 9 1 TRUST ACsP.I;i:`iIsNT THIS TRUST AGRI EMENT made and entered into this -4th day of FEBIWARY _, 196 6 , by 'and betv:ecn SIGNAL OIL, AND CAS COMPANY, a corporation, hereinafter referred to as "Si.gnal.", and DEANE DRO 'RERS, a corporation, hereinafter referred to as "Deane", (Signal. and Deane are sometimes hereinafter referred to collective-ly as "T.3.ustors") , and TITLE INSURANCE AND TRUST COMPAIrY, herei.naftcr reforr.ed to as "Trustee" . ARTICLE I. Definitions Unless otherwise indicated in this Agreement, the fol- lowing terms shall be. defined and deemed to mean as follows: 1. "Newland Lease" is defined as that certain lease dated July 1, 1959, between Clara J. Iseno-r, Helen Newl, I— :, Clinton C. Newland, Jessie E. Corbin and John D. Newland, T?'us- tees of the1.7. T. Newland Trust Estate, under Agreement and Declaration of Trust recorded in Book 637, page 306, Official , Records of Orange County, California, as-- Lessor, and Signal Oil ! • and Gas Company, a corporation, as Lessee, recorded October 8, 1959, in Book 4917, pages 470 et seq. , Official Records of Orange County, California, and re-recorded October 28, 1959, in Book 4945, pages 307 et seq. , Official Records of Orange County, California, as amended by the following instruments: r ' (a) Amendment dated October 30, 1959, between the said Lessor and said Lessee, recorded December ` 16, 1959, in Book 5018, pages 132 et seq. , Official Records of said County; and (b) Amendment dated April 5,, 1963, between the W. . T. Newland Estate, a limited partnership, successor in interesE to the above-named Lessor, and Signal Oil_ and Gas Company, Lessee, recorded August 20, 1963, in Book 6684, page 84 et seq. , Official Records of said County. 2. "Thornburgh Lease" is defined as that certain Lease dated July 1, 1959, between Lawronce 0. '19lornburgh, a single man, and Lulu E. Thornburgh, a single woman, , as Lessor, and Signal Oil and Gas Company, as, Lessee, recorded in Book 4933, Sage 63 et seq. , Official Records of the County Recorder of the County of Orange, State of California; 3. "Master Ground Lease" is defined to mean that certain Lease dated September 12, 1963, by and between Signal as Lessor and Deane as Lessee, as amended, a memorandum of which Lease was recorded in Book 7003, page 681 et seq. , Official Records of Orange County, California; "Subject Property" is defined as the real property which is the subject of the Master Ground Lease, exclusive of ,Parcel No. 3 hereinafter described; 5.- "Parcel No. 1" is the real property which is the- subject of the Newland Lease; - 6.. "Parcel No. 2" is the real property'which is the subject of the Thornburgh Lease; 7. "Parcel No. 3" is the property held in fee by Signal and is referred- to in Paragraph III of the Master• Ground' :Lease; 8. "Lot" is defined as any lot into which the Subject Property or any portion thereof has been subdivided, 9. 41Lendcr." is definecl as any savings and loan assoeiatiozi or other financial institution which shall make any construction or permanent loans secured by' a deed of trust on the leasehold interest of: the Subject Property, or any portion thereof, acquired by or through Deane under the Muster Ground Lease. "Buyer" is defined to mean each person who is a purchaser of any structure located on the Subject Property or any portion thereof or each person who is a sublessee of any lot. 11. "City" is defined as the City of Huntington Beach, California. 12. "Interested party" is defined to mean any lender, buyer, the City, Signal, or its successor in interest under the Newland and/or Thornburgh Leases, or any. port.Lons thereof, and Deane, or its successors in interest under the Master Ground Lease, as to any portion of the Subject Property. 13. "Tract map" shall be defined to mean an}' S: final subdivision tract map filed with respect to any ` portion of the Subject Property. 14. 11Sales contract" is defined as any written agreement entered into between Deane or its successor in , interest and any buyer for the purchase and sale or lease - of any portion of the Subject Property. -3- 15. "Sub-lease" is defi.ncd as any sub-lease entered into between Deane or its successor in interest, and a buyer relating to any Iot. ARTICLE H. Facts This Trust Agreement is made with reference to the following facts; 1. Deane has entered into the Master Ground Lease for the purpose of subdivision and development of Subject Property and in connection therewith Deane, or its successor in interest, intends to cause such lots to be improved by constructiiig thereon single--family residences and other structures; to cause such residences and structures to be sold, and to sublet such lots. to members-of the public. 2. In connection with the subdivision and development of the Subject Property, Deane, or its successor in interest, intendsto cause tract maps to be filed of record which will sfiow streets intended for the use of the lot owners in the suli- ' •. division, their licensees, visitors, tenants and servants, and with respect to which said streets, Signal and Deane will offer t „ for dedication for public use only their respective leasehold interests therein, but the fee therein will not be offered for • z dedication for public use upon the recording of such tract maps. . � Deane and Signal have entered into an agreement with the City wherein and oinereby Deane and reed to cause the Signal have a • g g fee to such streets to be dedicated for public use when Signal _ :►acquires the fee to the Subject Property upon the exercise . of the option provided under the Newland and Thornburgh Lewes, h respectively. ' -4- ...... ...: 3. In connection with the subdivision and develop- ment of the Subject Property, Deane intends to obtain con- struction and permanent loans from lenders, secured by deeds of trust on the le:schold interest in the individual lots acquired tinder the Piaster Ground Lease. 4. Deane and Signal dcsire to assure that: (a) No default or breach will occur under the Newland Lease, the Thornburgh Lease or the Piaster Ground Lease; (b) If a breach or default_ shall occur under the Newland Lease, Thornburgh Lease or the Piaster Ground Lease, such breach or default shall be cured within the time specified in the respective leases, and that the right, title or }. a. r :• interest of any interested party, as said term is herein defined, shall not be adversely affected by any such breach or default; (c) The Subject Property will be purchased land acquired by Signal under. the Newland and Thornburgh Leases respectively, and as provided in said leases, at the earliest date upon which such options can be exercised; (d) Upon the exercise of the 'respective options under the Newland and Thornburgh Leases: (i) the fee to the streets as sh wa on any subdivision tract map recorded prior thereto will be dedicated for public use to the City or its successor in interest. 5- the fee to any lot to which any buyer is entitled will be conveyed to such buyer at such lime as he is entitled thereto. ARTICLE •111, Exercise of Options 1, Signal hereby assigns, transfers and conveys to Trustee, •, in trust, for the benefit of all• interested parties, as said term is herein defined, the right and option to purchase Parcel. I as provided in Paragraph 3 of the Newland Lease, and Parcel 2 as provided in SM Paragraph 3 of the Thornburgh Lease, and Signal hereby irrevocably instructs and directs the Trustee to exercise the said options upon the earliest dates and at the earliest time permitted under the Newland and Thornburgh Leases respectively, Signal hereby undertakes land agrees that, to the extent that the monies provided by Signal thereunder are insufficient for said purpose, it will pay to the Trustee the monies required for the purchase of said Parcel I and Parcel 2 prior to the date upon wl 'ch the option to purchase said parcels is to be exercised as here. .iafter provided and in accordance with the terms hereof. 2. Trustee undertakes and agrees to exercise the options to purchase Parcels I and 2 under the Newland and Thornburgh Leases at the earliest time permitted under said leases, This undertaking land agreement is expressly made for the benefit of all interested p arties as that term is defined herein other than Signal., its successors or assigns, and is not conditiorid upon the performance by Signal or Deane of their obligations under this instrument. 3. Upon the exercise of the options under the Newland and Thornburgh Leases, the Trustee shall hold, dispose and dis- tribute title to said Parcels 1 and 2 respectively, as follows: (a) Provided that Signal or its successors or assigns are not then in default hereunder, Trustee shall assign, transfer and convey to Signal, or its f successors or assigns, the following: (i) Title to any 'and all portions of said parcels 1 and 2 and the rights in said parcels s IMIN i set forth and descril- .d in Exhibit "A" attached to the Master Ground Lease, and by this reference made a part hereof, which have been reserved by Signal pursuant to said Master Ground Lease for its own use and benefit and which are not included in the Subject Property; � (ii) Any portions of Parcel 1 and Parcel 2 excluded ...id excepted from the leased premises pursuant to the provisions of Paragraph 3. 1 of Article TIT of the raster Ground Lease; (iii) Such portions of said propert,, referred to in Section .3.6 of Article III of the Master Ground Lease with respect to which the rights and interests of Deane or its successor in interest terminated pursuant to the 'provisions of said Section 3.6 of Article III; and (iv) Such portions of said property with respect to which Signal has theretofore terminated the Master Ground Lease. At the time of the exercis% of the option and pre- paratoxy to the assignment, transfer and conveyance of any portion \ of the property not transferable to Deane Brothers, its successors or assigns, by virtue of the provisions of the Master Ground Lease, Trustee shall notify Signal of its exercise of said option. ' Within thirty (30) days of receipt of such notice, Signal shall certify to the Trustee as to such portions of said property to be conveyed to Signal pursuant to Sections (ii) , (iii) and (iv) . of Pari,,,raph 3 (a) of this Article III, and Trustee may rely ��upon any certificate signed by an officer of Signal certifying that Signal -s entitled to a conveyance of such portions of said property in accordance with the terms of the Master Ground Lease. (b) The Trustee shall dedicate or confirm the dedication f-c public use any and all pertions of said \I property shop--m as streets of any tract map theretofore filed of record by Deane, or its successor in interest, and all portions of said property which Signal and Deane may have theretofore agreed to dedicate for pub- lic use pursuant to any Agreement between Signal, Deane and the City, (c) From time to time thereafter, the Trustee shall, upon written request from Signal, accompanied by a certi- ficate signed by an officer of Signal to the effect that Signal is entitled to a conveyance of additional par- tions of Parcel 1 and Parcel 2 under and pursuant to the terms of the Master_ Ground Lease, convey such portions of said property to Signal but only after giving Beane twenty (20) days written notice of its intent so to do. Should Trustee receive any written objection to such conveyance from Deane within said twenty (20) day period, then and' in such event -Trustee shall have the ribht to withhold any action upon such written request from Signal for such conveyance, and Signal and Deane agree to hold Trustee harmless against any loss, claim or liability arising out of or based upon Trustee' s failure to make such conveyance as contemplated by this sub- paragraph until such dispute between Signal and Deane has been determined by agreement or judicial action. (d) The Trustee shall convey the fee to all of the lots which have been sold to buyers and with respect to which the buyers are then entitled to receive title under the terms of any sub-lease assigned to the Trustee pursuant to any Declaration of Trust entered into by Deane in connection with the subdivision and developincitt of each tract of the Subject Property as hereinafter provided in Paragraph 2 of Article V hereof. (e) The Trustee shall hold title to all lots which have been sold or sublet to buyers for the benefit of such buyers and for the benefit of Deane or Deane' s ! successor in interest as their interest may appear " until such time as such buyers are entitled to receive title thereto under the terms of the sales contracts or _subleases entered into by such-buyers with Deane or its successor in interest-, or until Deane or its successor in interest is entitled to the title by the terms of such sales contracts or such subleases. (f) The Trustee shall from time to time upon written request from Deane, accompanied by a certificate signed by an ofricer of Deane to the effect that Deane r . or Deane's successor in interest is entitled thereto, convey to Deane or Deane's successor in interest any and all portions of the Subject Property for which payment has been made in full to Signal and which are not then subject to any sales contract or subleases assigned to Trustee under any Declaration of Trust made pursuant to Paragraph 2 of Article V hereof, whereupon any and all obligations or liabilities of Trustee to all interested parties, as said term is herein defined, shall cease insofar as such property is concerned, ARTICLE IV. Maintenance of Newland and Thornburh Leases. 1, Signal undertakes and agrees to maintain in full force and. effect the Newland and Thornburgh Leases in a current non.-default status and agrees to cure any and all defaults which may occur under the terns of said Leases, or either of oh m, 3 at any time: or from time to time throughout the existe.ice of this Trust or until the option to purchase Parcels ►,Tos• • OR 1 mum 1 and 2, respectively, have been exercised as -herein provided. 2. In the event Signal fai]_s to pay and discharge, or cause to be paid and discharged when due, and payable, any rent or any of-.her n her charge upo or. in.connection N•rith Parcels -Nos. 1 and 2 to be paid or discharged by Signal. under_ the terms of the Newland and/or Thornburgh•Leases respectively, or should Signal fail to cure any other breach or default which might. , occur under the Newland and/or Thornburgh Leases within ten Mays after written notice from Trustee, then Trustee .shall pay any such rent- or other charge upon or in connection with the 'leased premises or settle or discharge any action ther?f_or or cure such breach or default, and Signal undertakes and abrces to reimburse Trustee and to hold Trustee free and harmless from any loss which it may sustain by reason thereof. The undertaking of Trustee under this Paragraph 2 of Article IV is made expressly for the benerit of all interested parties, as said term is defined herein, other than Signal, or its suc- cessors or assigns , and is not conditional upon the performance by Signal and/or Deane of their respective obligations under this instrument. 3. Signal undertakes and agrees to notify the Lessors under the Newland Lease and the Thornburgh Lease, respectively, that all notices and other communications for Lessee which are required or permitted under the Newland and Thornburgh Leases, respectively, are to be sent to Trustee instead of Signal, to >t the end that the Trustee may receive any and all notices and i ether communications pertaining to the said leases, or either of 'them, including without limiting any and all notices of any breach or default under said leases. Upon receipt of any notice of default or breach under the Newland and/or Thornburgh Leases, Trustee undertakes and agrees to forthwith notify Signal and. Deane in writing and furnish to Signal and Deane a copy of • such t:otice. SKIPA_ , 4. In order to secure the performance by Signal of its obligations under the Newland and Thornburgh Leases . Signal . hereby assigns to Trustee all of its right, title and intcrest in each of said leases , and all of its right, title and interest as Lessor of the Master Ground Lease. The assignment for security effected by this paragraph shall b'e distinguished from the abso- lute assignment of the options under the Newland and Thornburgh Leases which was effected by Article XIS of this instrument. The assignment for security herein effected shall be on the following terms and conditions: (a) Until foreclosure, as hereinafter described, by Trustee of the security herein given, and except as otherwise herein provided, Signal may collect at the time of, but not before, the date provided for pay- ment, all rents, income and profits arising out of the Piaster Ground Lease and may retain use of and • enjoy the same. Similarly, Signal may until fore- closure, as hereinafter described, exercise all of the ,rights and privileges of Lessor under said Piaster Ground Lease and as Lessee under the Newland and Thornburgh Leases; - (b) If Trustee has cured any default under the Newland and/or Thornburgh Leases as provided in Paragraph 2 of this Article IV, Trustee shall notify Signal in writing that it has cured such default and shall concurrently make written demand upon SigrLal for reimbursement as provided in said Paragraph 2. Should Signal fail to• reimburse Trustee for the cost and expenses incurred by Trustee in curing such default within thirty (30) days after receipt of , such notice and demand, then the security effected by the assignment herein shall. be deemed foreclosed as of the end of, said thirty-day period with respect to Signal 's interest in and to the said Lease (Newland or ''hornburgh, as the case may be) under which default was so cured by Trustee and Signal's interest in and to the Master Ground, Lease insofar as it relates to the property which is subject to the lease under which the said default was cured, and Signal 's assignment of such interest in such leases shall become absolute. F . (c) The vesting in Trustee of the interest of Signal as Lessee of the Newland and Thornburgh Leases and as Lessor of the Master Ground Lease shall be' sub- ject to the rights of Deane as Lessee of said Master Ground Lease, and shall be subject to the rights of any sublessees or assignees of Deane, and shall be further subject to the rights of any holder of any lien or mortgage against the Subject Property which is the subject of the Master Ground Lease, which said lien or mortgage-has been or may be acquired in good faith and for a valid consideration. 5. In order to further secure Trustee ag&J_nst loss by ;.`,:• •, . reason of any breach by Signal of any covenant herein contained,. 'Signal hereby agrees to deposit with Trustee the sum of $750,000.00 'within fifteen (15) months from and after the execution of this Agreement or at least thirty (30) days prior to the issuance by Trustee of any policy of title insurance hereunder on the,Subject Property or any portion thereof to Signal, Beane, or any interested s party, as said term is herein defined, whichever shall first occur, ' *.. - -.. Upon receipt of any request by Signal, Deane, or any interested party, as said term_is herein defined, for a policy of title insu- nce on the Subject Property or any portion thereof, Trustee sha`11 give S.i.gnal written notice of such request, and within thirty (30) days after receipt of such written notice Signal shall: deposit with Trustee the said sum of $750,000.00, anything herein contained to the contrary notwithstanding. The said sum s of $750,000.00 so deposited by Signal. with Trustee shall be held, used and distributed by Trustee as follows: (a) In the event that Signal fails to pay and discharge, or cause to be paid or discharged when due and .payable, any rent- or other charge to be paid• o): discharged by Signal uiicler the Newland and/or Thornburgh t Leases, respectively, or under the terms of this Agree- ment, within ten (10) clays after written notice from Trustee, then Trustee may use so much of the monies ther, r,n deposit with 'Trustee under this Paragraph 5 as may be necessary to pay such rent or other charge upon or in connection with the leased premises or settle or discharge any action therefor, or cure such breach or default. (b) Should Trustee use any of the monies so de- posited by Signal pursuant to this Paragraph 5 as aforesaid, Signal undertakes and agrees to redeposit with Trustee an amount equal to the sum so used by Trustee within ten (10) days after receipt of written notice from Trustee that such sum has been so used by Trustee. _.' (c) • The sums so deposited by Signal pursuant to ehis Paragraph 5 shall be reduced and shall be dis- :tri.buted and returned to Signal a1;-follows: (i) $100,000.00 when Trustee shall hold on deposit the sum of $100,000.00 in the Signal -Purchase Payment Account to be established pur- suant to ARTICLE VI hereof; (ii) $100,000.00 when Trustee shall hold on deposit the sum of $200,000.00 in said Signal Purchase Payment Account; (iii) $100,000.00 when Trustee shall hold on deposit the sum of $300,000.00 in the said Signal Purchase Payment Account; (iv) $100,000.00 when Trustee shall hold on deposit the sum of $40031000.00 in the said Signal Purchase Payment Account; ' (v) $1.06,000.00 when Trustee shall hold on •deposit the sum of $500,000.00 in the said Signal. Purchase ,Payment Account; (vi.) $100,000.00 when Trustee shall hold on t ' deposit the sum of $600,000.00 in the said Signal_ Purchase P, mein Account; (vii_) $100,000.00 when Trustee shall hold on deposit the sum of $700,000.00 in said Signal Purchase Payment Account; (viii) $50,000.00 when Trustee shall hold on deposit the sum of $750,000.00 in said Signal Purchase Payment Account. (d) Any monies deposited pursuant" to this Paragraph 5 which then remain an deposit with Trustee shall be used by Trustee for the purpose of paying the purchase price to be paid by Trustee upon the exercise of the captions under the Newland and Thornburgh Leases, * re-- i! ,"' spectively, in accordance with the provisions of ; ARTICLE III hereof, i (e) In lieu of depositing cash with Trustee pur- t : '' swan` o this Paragraph 5, Signal may at any time or t.. from ._Lme to time furnish to Trustee a corporate surety bond (in the form attached hereto marked EXHIBIT I) in the penal sum of the $750,000.00, or such lesser sum as may then be required to be on deposit hereunder by reason of the accumulations in the Signal Purchase Payment Account in accordance with subparagraph (c) of this Paragraph 5, the condition of the bond being that in the event Signal fails to pay and discharge, ` 15 . •1 . c or cause to be paid or discharged V.11et1 due and pay- able, any rent or charge to be paid or discharged by Signal under the Newland and/or llioraburgh Leases or tinder .the tet•1ns of this Agreement (including 1•:ithout limiting the deposit to be made pursuant to subpara- graph (f) hereof) , the obligor ur,ler said bond (the bonding company) will pay to Trustee the full pedal , amount of said bond (the sum of $750,000.00 or such lesser sum as may then be required to be deposited hereunder by reason of the accumulations •i_n the Signal Purchase Payment Account) . (f) In the event that Signal elects to furnish a bond in lieu of cash pursuant to subparagraph (e) hereof, and said "bond is for a term of years, Signal undertakes and agrees that Signal will, at least three (3) years prior to th.e expiration of the ter'M -of said bond, deposit with Trustee an amount equal to the sum then required to be deposited with Trustee is pursuant to this Paragraph 5 after giving effect to the provisions of subparagraph (c) hereof.. (g) Any monies paid to Trustee by the obligor i under any such bond furnished by Signal hereunder shall be held, used and distributed by Trustee in i accordance with the provisions of this Paragraph 5. 6. The remedies herein provided for the benefit of Trustee shall be cumulative and shall be in addi„ion. to any r ' remedy provided by law or in equity. --- 7. Signal undertakes and agrees' that it will n, t 1 assign, transfer or convey any interest under the Newland and z Thornburgh Leases without the prior written approval. of Trustee, ? provided, however, that Signal may, without such prior written approval., assign its interest under the said Newland and Thornburgh Leases to an entity, including, without limiting, a subsidiary or- successor entity, which has a net worth of not less than $9,000,Ouv.00 ($6,000,000.00 ,to cover the maximum liability for rentals, and $3,060,000. 00 to cover the purchase price) over and above its equity, if any, in the Newland and Thornburgh .eases and/or the Master Ground Lease. ARTICLE V. Maintenance of Master: Ground Lease and Declaration of Txust by Deane. 1. Deane undertakes and agreas to maintain in full l • (; • t force and effect the Master Ground Lease in a current and non-default' status and agrees to cure any and all defaults which may occur under the terms of said lease at any time or from time to time during the existence of this Trust-. 2. Deane agrees that in connection with the sub- division and development of each tract of the Subject Property, it will enter into a Declaration of Trust with the Trustee in the form hereto marled Exhibit "A" and incorporated here- in by reference, and will assign to the Trustee for collection all. sales contracts or subleases which it or its successor in interest may enter into with buyers in connection' with the development of the Subject Property. 3. In the event Deane fails to pay and discharge, or cause to be paid and- discharged when due and payable, any rent or other ,t urge upon or in connection with the Subject Property, to be paid or discharged by Deane under the terms of the Master Ground Lease, or should Deane fail to cure any other breach or default which might occur under said Master Ground Lease within ten (10) days after written notice from' Trustee, then Trustee may (but is not obligated so to do) pay any such rent or other charge upon or in connection with Ithe leased premises or settle or discharge any action there- . �. for, or cure such preach or default. Signal and Deane undertake and agree to serve upon Trustee a copy of any notice of default permitted or required under the terms of the Master Ground Lease concur- rently with the service of. such notice upon each other. 5. In order to secure the nerformance by Deane of • its obligations under the Master Ground Lease, Deane hereby MUM "- assigns to Trustee all_ of' itsright, title and interest as Lessee in said Master Ground Leasc> The assignment effected by this paragraph. is for security only. Said assignment for security shall be on the following terms and conditions: (a) Until foreclosure, as hereinafter described by Trustee of the security herein given, and except as herein otherwise provided, Deane may enjoy all of the rights of said Lessee under said Master Ground Lease, subject to Deaae's obligations as Trustor under the Declaration of Trust incorporated by reference above • as Exhibit "A". (b) If Trustee has cured any default under the Master Ground Lease as provided in Paragraph 3 of Article V, Trustee shall notify Deane in writing that . r • Trustee has cured said default and shall make written demand upon Deane for reimbursement as provided in said paragraph. Should Deane fail to reimburse Trustee for costs and expenses incurred by Trustee in curing said default within thirty (30) days after receipt of such notice, then the security effected by the assign- ment herein shall be deemed foreclosed as of the end of said thirty (30) day period and Deane's assignment - of its interest in the Master Ground Lease shall become absolute, and such assignment shall. include any rights reserved to Deane under any prior assignment of its interest under the Master Ground Lease. (c) The vesting in Trustee of the rights of Deane under said Master Ground Lease shall be subject • to the rights of Signal as Lessor of said Master Ground Lease and shall be subject to the rights of any buyers or sub-lessees or the rights of any persons to whom Deane has made an assignment of any of its interest undez •the-Master Ground Lease with the consent of Trustee, as hereinafter provided, and shall. be further subject to the rights of any ho'.der of ally lien or mortgage against said property which has ' been or may be acquired in good faith aad for a valid consideration. The vesting in Tr,]stee of the rights and obligations of Deane under said Master Gro, nd Lease shall also be subject to the De is •ati.ozi of Trust incorporated by reference above as Eylilibit "All 6. Deane undertakes and agrees that it will not assign, tzansfer or convey any interest under the Tiaster Ground pease with out thti prior written approval of Trust.-ep; provided, however, that such prior vri.tten approval shall. not be required in connection with any sales contract or sublease entered 3.rtto with a buyer or in connection wit-li -che execution of any deed of trust in favor of any Lender. ARTICLE VI. Receipt and Disbursal of Payments By Trustee and Establishment of Reserve Account. 1. Deane undertakes and "agrees that concurrently with* giving Signal notice of its intention to place parcels under development, as provided under Paragraph 3.1 0£ Article Ili. of the Mastcr Ground Leases it will furnish a copy of such notice to Trustee and shall. indicate in each such r..o4iee the total number of gross acres included in such parcel which shall be used by the Trustee for the purpose of determining the rentals and purchase ' payments payable by Deane to Signal under Paragraph 4.1 of Article 4 and Paragraph 14.1 of Article 14 respectively of the Master Ground Lease. F 2, Trustee shall-establish the follo= :ng trust accounts; (a) Signal Rental Account ; (b) 'Signal Purchase payment Accounts _ f (c) Signal Surplus Account. (d) Deane Reserve Account. • _ a1S_ y Trustee from each3, The monthly paymcnUs received b . of: the sub trusts created by Deane, plirsuant to Paragraph 2 of ARTICLE V of this Agrn_ement, shall bc 'ellocatcd to the accounts referred to in Paragraph 2 of' this ARTICLE YI, and. sh,all be re- tained wad disbursed by Trustee as follows: (a) Commencing 171_th the lst day of March, 1969, . all payments received by Trustee from the said sub-trusts shall be allocated to the Signal .Rental Account until such account reaches the total sum arrived at by multiplying the total number of rc .s acres then under development- by the sum of 1,1;50.00, and thereafter all such allocations shall be made to the Deane Reserve Account until a disbursert:ent is made from said Signal Rental Account to the Signal Pur- chase Payment Account, as hereinafter provided, at which time Trustee shall again allocate said payments to the 'Signal_ Rental Account until such account+ again reaches the total sum arrived at by multiplying the total number of s •' ; gross acres then under development by the sum of $1,050.00. Trustee may from time to time reduce the at,ount to be so' accumulated and hold in the Signal Rental Account such •.. G { , amounts as Trustee in its sole discretion may determine to be reasonably required to secure Deane's obligations under the Master Ground Lease as hereinafter provided. (b) Trustee shall from time to time, upon written instructions of Deane - .; for the account and risk of Deane, d anvest and reinvest such part of the monies on deposit i=i the Signal Renta'� Account as Trustee, in Its sole discretion, shall determine are not currently required to meet: the quar- terly payments to be made to the Signal Purchase Payment Account, in securities of the United States of America, or any agency thereof, in municipal bends having a Moody's "All gating, or in any securities traded upon the New York Stock ay be deposited upon the written Exchange, or such funds m instructions of Deane in an interest-bearing time deposit or. savingsaccount, Trustee shall be and hereby is fully en:;)owered to sell -,y obligations or securities purchased by it pursuant to this subparagraph (b) at the then market value in order' to provide cash to make any payments required to be made hereunder by Trustee from said account, Trustee may hold such obligations or securities so purchased by it hereunder, whether in its own name or street name, with- out any responsibility othe than the safe keep.Lng ther_of.. Interest or dividends received by Trustee on any such obligations. or securities in each calendar year shall be •distri.buted to Deane within ninety (90) days after the end of such calendar year. Should all or any part of the monies on 'deposit in the Signal Rental Account be investr3 in any calendar year as herein provided, then and in such event Trustee shall, within sixty (60) days followinl,, the end of such calendar year, determine and notify Deane in writing as to the fair market value of the monies and securities on deposit in said account as of the last busi- ness day of such calendar year, indicating in such notice tfie amount,, if any, whereby said total fair market value is more or less ',han the total amount which would have been on deposit in said account as of the said date had no such investments been made by T-u.stee. Deane shall have the right at any time within thirty (30) days aft -receipt of such notice from Trustee, to withdraw, and Wustee shall, upon receipt of written notice within said thirty (30) day period from Deane requesting Trustee so to do, deliver to Deane, cash or securities in an amount not to exceed the" amount, if any, of such excess on deposit , in said account. Similarly, upon receipt of written icquest from Trustee so to do, Deane shall deposit- with Trustee in said account an amount equal to the amount, if ai,T,, whereby said account is so deficient. (c) Cortviiencing* on the 12th day of September, 1969 and quarterly thereafter for the period hereinafter 1 • r provided, Trustee shall wi-t-tulraw i:rom the Signal. Rental Account and shall distribute to the Signal Purchase Pay- -m-,nt Account to apply on the rentals and purchase pay- ments payable to Signal pursuant to ARTICLE IV and ARTICLE XIV respectively of the Master Ground Leaser a sum arrived at by multiplying the total number of gross acres under development by the sum of $525. 00. All monies allocated to the Signal. Purchase Payment Account pursuant- to this subparagraph (c) of this Paragraph 3 up to the sum of $100,000.06 so allocated in any calendar y,nr shall be retained by Trustee in the Signal Purchase Payment Account, to be held and used by Trustee as hereinafter provided, Furthermore, in the event that the Piaster Ground Lease shall be terminated by reason of Deane's default thereunder or hereunder, all rentals and payments received by Trustee and/or Signal from the Subject Property ?.p to the sum of $100,000.00 in each calendar year shall be paid to or' retained by Trustee, as the case may be, to be deposited in the Signal Purchase i r:•' Payment Account. Any sums allocated to the Signal Purchase Payment Account pursuant to this subparagraph (c) in excess of $100,000.00 in any calendar year shall be allocated to the Signal Surplus Account, provided, furthe;c, that 3.;Hen Trustee has ac:cuinul.ated the total Sum of $3,060,000,00 in the Signal Purchasc� Payment. Account, all monies allocated to the Signal Purchase Payment Account pursuant: to this subparagraph (c) of this Paragraph 3 shall be allocated to the Signal Surplus Account, (d) The monies on deposit in the Signal Purchase Payment Account shall be held, adininister`d and used VA h by Trustee as follows: (i) Trustee shall use .the sums accumulated in the Signal Purchase Payment Account for the purpose of paying the purchase price to be paid by Trustee upon the exercise of the options under the Newland and Thornburgh Leases respectively in accordance with the provisions of ARTICLE III ' hereof; (ii) In the event Signal fails to pay and discharge, or _ iuse to be paid or discharged when due and payable, . any rent or other charge to be paid or discharged by Signal under the Newland and;or Thornburgh Leases, respectively, or under the terms of this Agreement, within ten (10) days after written notice from Trustee, then Trust, may use so much of the monies then on deposit _a the Signal ?urchase Payment Account as may be necessary to pay such rent or other charge upon or in connection with the leased premises , or' settle or discharge any action therefor, or cure such breach or default. Should Trustee use any of the monies on deposit in said Signal Purchase Payment Account to cure any such default as aforesaid, then and in such event Signal under- takes and agrees to reimburse the said Signal Purchase Payment Account for the amount so used I j by Trustee within ten (10) days after receipt of the written notice from Trustee that such sum has been so used Ly Trustce; (iii) Trustee shall from time to time, .upon written instructions of- Signal and for the account and risk of Signal, invest and reinvest all or any part of the monies on deposit in Lh,� Signal Purchase • Payment Account and t ;e monies deposited pursuant to Paragraph 5 of ARTICLE 1V hereof, in securities of the United States of America, or any agency thereof, in municipal bonds having a Moody' s "A" rating`, or in any securities traded upon the New York Stock Exchange, or such funds may be deposited upon the writ!-en instructions of Signal in an interest-bearing time deposit or savings account. Trustee shall be and hereby is fully empowered to sell any obligations or securities purchased by it purstzanu to this Para- graph at the then market value in order to provide ` cash to make any payments required to be made hare- under by Trustee. Trustee may hold such obligations or securities so purchased by it hereunder, whether in its own name or street name, without any responsi- bility other than the safe keeping thereof. Interest { f; or dividends received by Trustee on any such obli.- gations or securities in each calendar year shall be _ distributed to Signal upon Signal's written requestj. within ninety (90) days after the end of such calendar year.; . provided., however, that should Signal .fail to request the distribution of such income within t' said ninety (90) day period, then and in such -event such income shall be added to and shall become a part of the Signal Purchase Payment Account; provided, further, that .any and all accumulations in excess of $3,060,000.00 shall from time to time be distributed to Signal. (iv) Should all or any part of the monies on de- posit in the Signal Purchase Payment Account be inves.tec in any calendar year as-herein provided, then and in such event Trustee shall., within sixty (60) days follow- ing the end of such calendar year, determine and notify Signal in writing as to the fair market value of the monies and securities on deposit in said account as of the last business day of such calendar year, indicating in such Notice the amount, if any, whereby said total fair market value is more or less than the total amount which would have been on deposit in said account as of the said date had no such zZvestments been made by Trustee.' S- nal Fhall have the right, at any time within thirty (30) days after receipt of such notice • ."• : from Trustee, to withdraw, and Trustee shall, upon ' receipt of written i_otice within said thirty (30) day period from Signal requesting Trustee so to do, de- liver to Signal, cash or securities in an amount not to exceed the amount, if any, of such excess on deposit in said account. Similarly, upon receipt of written request from Trustee so to do, Signal ' small deposit with Tr'sstee in said account. an amount equal to the amount, if any, whereby said account is i so deficient, " (e) All monies allocated to and deposited in the Signal S,.irp,lus Account shall be distributed to Signal quarterly or upon demand of Signal. ' (f) It is understood and ,agreed trial under the pro- y visions of ARTICLE IV and ARTICLE XIV respectively of the Master Ground Lease, Deane is required to make the following 1� payments based on the number of acres of the .Subject Prop- erty placed under development by Deane: (i) Rental payments of $300.00 per year per acre, ar $75.00 per*quarter per acre; (ii) Purchase payments of $1,800.00 per year per acre, or $450.00 per quarter per acre. The purchase payments are to be made for a period of 30-1/4 years. it is agreed, therefore, that when such rentall, and purchase payments have been made for a period of 30-1/4 years with respect: to any parcel placed under development, '%` amounts to be allocated -to the Signal Rental Account, as pravided. in subparagraph (c) of this Paragraph 3, shall be proportionately reduced by the number of acres contained in the parcels with respect to which the purchase pa)mients have been completed, and such parcels shall no longer be '. ' deemed to be under development for the purposes of said subparagraph (c) of this Paragraph. 3. Distributions made hereunder to the Signal Purchase Payment Account as provided under subdivision (c). of Paragraph 3 of this ARTICLE VI, shall constitute payment by Deane to Signal of the payments to be trade by Deane under the provisions of ARTICLE IV and ARTICLE XIV respectively of the Master Ground Lease. .r (g) All monies allocated to and deposited in the Deane Reserve Account shall be .:istributed to Deane at ` ''' = intervals or upon demand of Deane, less an amount ' sufficient to cover Trustee's compensation hereunder and less a reasonable ;reserve as may be set by 1?cane to meet contingencies, (h) Trustee may from time to time deduct from ' amounts distributable to Deane hereunder amounts suf- ficient to cover Trustee's compensation here,_inder. (i) Should the moni.cs to be allocated to the Signal Purchase Payment Account: pursuant to subpara- graph (c) of this Paragraph 3 be insufficient in any quarter to meet the quarterly rental and/or purchase payment to be made under the provisions of ARTICLES IV and XIV respectively of the Master Ground Lease, ten (10) days prior to th.� date when such payments ; . are due, Trustee may withdraw the amount of such J deficit from the Deane Reserve Account and use the same to make such payment; and in the even : t:he monies then in the Deane Reserve Account are insuf ficient, Trustee shall make written demand upon Deane (a copy of which demand shall be sent to Signal) for the amount of such deficit end Deane shall cause the ti ! amount of such deficit to be paid to Trustee within said ten (10) day period for allocation to the Signal Purchase Payment Account as provided in said subparagraph (c) of this Paragraph'. .J • (j) Should Signal default in any of its obligations T :. under the Newland and/or Thornburgh Leases, Trustee may resort.: to and withdraw funds from the Signal Surplus Account to cure such default and to reimburse Trustee for .ts costs' and expenses, 3.£ any, in connection there- with. 4. If the sum df $3,060,000 O has not been accumu-• '. �.1ated in the Signal Purchase Paymenc Account by July 1, 1996, r !Signal undertakes and agrees to deposit with Trustee on said date cash or its equivalent in securities acceptable to Trustee in t • ' an amount equal to the difference between the amount then on deposit in said Signal. Purchase Payment Account and the said sum 'of $3,060,000.00, to be added to the Signal Purchase Payment Account for the uses and purposes hercinabove provided, to be used by' Trustee pursuant to the terms hereof. Should Signal. fail to furnish Trustee with the monies. required for the purchase of. Parcels 1 and 2 as herein .. �a provided, and Trustee is required to advance its o -m funds there- for, Trustee may retain all monies otherwise allocable to Signal pursuant to subparagraph (b) of Paragraph 3 of ARTICLE VI for its , own account until it has been fully reimbursed for any and all sums and expenses so advanced by it, 5. In the event that at any time during the term of this Trust-, and prior to the deposit of the purchase price of the property covered by the Newland and Thornburgh Leases as provided in Paragraph 4 of this ARTICLE VI, the total shareholders' equity and/or the total net current assets (total current assets less total current liabilities) of Signal and its subsidiary com- panies as shown on the Consolidated Balance Sheet of Signal for any year prepared by Signal' s accountants wand/or auditors shall. be less than eighty percent (20%) of such shareholders' equity and/or such net current assets, as sho,,rn on the Consolidated Balance ,Sheet of Signal and its -subsidiary companies as of December 313, 1963) or in the event that Signal makes an assign-. ti ment of its interest in the Newland and Thornburgh Leases in accordance with the provisions of Paragraph 5 of ARTICLE IV hereof, and the net worth of such assignee shall be less than $9,000,000.001 either at the date of such assignment or at any time thereafter,. then, and in either of such events, Trustee shall have the right to withhold the distribution to Signal of the monies distributable to Signal under subparagraph 3 (e) of this ARTICLE VI hereof, and in lieu of making such distributions to Signal place such sums into the Signal Purchase Payment Account anti.). Trustee has accumulatcd such amount ao Trustee in its sole discretion shall. r] ­n to be rcasonable a,, security for the pay- ment : f Signal s `" -Lt ions Yiereundcr, including without limita"ion, thb payme-at of all it,�.1s thereafter to become due under the Ncw- land and Thornburgh and the payment of the purchase price to be paid thereunder upon the exercise of the option to purchase the property as contemplated by the provisions of ARTICL;s ill hereof. ARTICLE VII. Amendment or Revocation of Trust. 1. This Trust Agreement is irrevocable. 2. This Trust Agreement may be amended by the written agreement of all the parties hereto, provie-ed, however, that such amendment- does not adversely affect the rights and interests of : .: any interested party, as said term is defined herein, who acted or relied or had a right to rely upon the provisions of this Agreement. should Signal furnish a bond pursuant to Paragraph 5 of ARTICLE IV of this Agreement, Trustee agrees to furnish the obligor under said bond with a copy of any amendment of this Agree- ment within twenty (20) days after such amendment is executed, ARTICLE VIII. Litigation and Related Matters. As between the parties hereto, in no event shall Trustee be required to arbitrate or detez-mine controversies which may «rise between the parties hereto or among the parties hereto (exclusive of Trustee) a,d other interested parties, as said latter term is herein defined, near shall Trustee be required to institute liti.ga- tion do behalf of the parties hereto or other interested parties or to defend claims against Signal and/or Deane which may be brought by persons not parties hereto including interested parties, ex- clusive, of course, of Deane and Signal. However, Tru;;tee. may, in its discretion, agree to defend or institute legal actions against J persons and entities not interested parties, as said term is here- in defined, subject to Trustee's receipt from any Such requesting .,party of funds and indemnities in amount and form satisfactory to. III IN 111!1111 it for use in the prosecution of any such actions. If Trustee, by reason of its office hereunder or in connection with its performance cf the duties imposed upon it by Any Declaration of Trust subst-anti.ally in the form of the EYhil; ,,t instrument which is, attached hereto, is involuntarily made m party-defendant to any action brought by any party, including but not by tray of limital.-ion, a party hereto or by any interested party not a party hereto, and provided said action is not attri- butable to Trustee' s negligence or willful misconduct in conned- tion with its administrati_oT1 of accounts, including its processing of and accounting for monies from time. *to time received, and dis- bursed by it, or with respect to i, performance on behalf of 'Deax-e in the event of default tinder any sales contract, agreement of sale or sublease (as said terns are defined hereunder and in Exhibit "A" here-o) , and further provided that said action is not brought for reasons ultimately determined to be attributable to Title Insurance and Trust Company's breach of any liability or obligaltion assumed by it with respect to its undertaking as •a title insure; (as said undertaking is more specifically defined in ARTICLE XI• balow) , said Trustee shall be entitled to aU costs and expenses, including attorneys'• fees, incurred by it by reason of _such 'action, and said Trustee or Title Insurance and Trust Company shall have a first lien on the trust estate to the extent of any fuds held by it or otherwise available to it hereunder. Kotwithstanding any of the foregoing provisions, said Trustee, by reason of its office hereunder and under the afore- said related documents , retains its right generally to interplead or seek other judicial relief as it from time to time determines , -to. be appropriate.. ARTICLE IX* Compensation of Trustee. Trustee shall be entitled to compensation for its services as set forth in Exhibit "B" attached hereto and by this reference r : + riiade a part hereof, which compensation shall be paid as provided in said schebule ARTICLE X. Term of Trust. '• This trust shall terminate upon the happening of any of the following events, whichever shall first occur: 1. At the expiration of the Master Ground Lease. 2. Upon the exercise of the options under the Newland and Thornburgh Leases anal upon completion of allpurchase payments to be made b;! Deane under ARTICLE XIV of the Master ' Ground Lease or upon the prior termination of the Master ` Ground Lease. 3. Twenty-one (21) years after the death of the last survivor of the persons named and referred to as "Said t :. -Persons" in the amendment dated April 5, 1963 to the New- land Lease recorded in Book 6617 at page 970 in Official Records of Orange County, California. Notwithstanding anything herein contained to the con- `' trary, it is expressly understood and agreed that this trust shall not terminate upon the happening of the events described in paragraphs 1 and 2 unless and until all of the rights and . rid rs.. .. interests of all interested parties, as said term is defined' ` herein, who acted or relied or had a right to rely upon the pro- _ visions of this Agreement, have been fully satisfied and dis- charged or othenaise secured, and in any and all events, Trustee shall � tain all right and power hereunder to carry out the z.. 'terms of the Trust Agreement, and shall retain -all right and interest in the Cubject Property and in the Master .Ground Lease : i assigned to Trustee hereunder so long as Trustee has any obli- gat ion to any interested party, as said term is defined herein. ARTYCLL XL. Liability Limitations. As between the parties hereto, notwithstanding any other pruvi_si:on herein contained or otherwise set forth in the Declaration of Trust attached hereto as Exhibit "A" or in any Declaration of Trust substantially in the form of said Exhibit "A" instru- ment which may from time to time be executed as contemplated hereunder, it is understood "and agreed that the obligations and liabilities assumed by Title Insurance and Trust Company or imposed upon it by this Master Declaration of Trust or by any of the Declarations of Trust substantially in the form of the aforesaid Exhibit "A" instrument (exclusive of any liabilities under any such instruments which might arise from its negligence or willful misconduct in the course of its administration of accounts and with respect to matters pertaining to it:s •handling of funds in its capacity as Trustee thereunder) shall- be limited strictly to those obligations and liabilities which relate to its undertaking as a title insurer • i • P r ' O . for the purposes and to the extent provided in any such instruments i ` and in that certain other instrument entitled "Title Insurance Agreement" which is attached hereto as Exhibit "C", and additionally, as may be provided or determined in any policies of title insurance from time to time issued by Title Insurance and Trust Company as contemplated hereunder. ARTICLE \II. Miscellaneous . 1. The rights and remedies provided in this Agreement shall be cumulative and the resort by any party to any remedy herein provided shall not be construed as a waiver of any other xemndy or relief accorded to such party by the terms hereof or by law or in equity. 2. Trustee reserves the right at the expense of the trust estate to take whatever steps, including judicial action, .. '. it deems proper in order to perfect its position in connection with the foreclosure, as is herein provided, of the interests of Signal and Deane under the Newland and Thornburgh Leases and the Master Ground Lease, respectively. 3. Trustee may adopt and develop accounting procedures acceptable to it so as to reflect the amounts allocated to the Signal Purchase Payment Account which are attributable to the payments received fsgm the sublessees of property located within each of the specific parcels which are at any time or from time to time developed as provided in Paragraph 3. 1 cf Article III of the Master Ground Lease. 4. This Trust Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their re- x . spective successors and assigns. 5. Notices arid. re:mittances sent pursuant to this instrument shall be effective upon being posted in a United States mailbox in a sealed envelope, postage paid, addressed to• the c party concerned at the following addresses: Trustco: 433 South Spring Street, Los A-,geles, California, Si gmal: 101.0 Wilshire Boulevard, ; Los .Angeles 17, California. Deane: P. U. Box ],, -Huntington Beach, California. N WITNESS j'3EIEF'EOF, the parties have set their hands and seals the day and year first above written, "Signal": SIGNAL OIL AND GAS COMPANY r'� f YRESIDE.t"s B IT_Qt becretary "Deane": DEANE BROTHERS t� By "Trustee": � .,-T-1 rfL-E—iNSURAN'CE AND TRUST C;O',PA-NY By • ��'Y _,,/J VICE 7ESi�� By ' ;+sry .r rcattAgy • gIII A —STOCK COMPANIES-- ( ROYAL C:DE 11"Idl ' C1:.%T1•.IY >. GLOBE POV,.NiT( CUITANY :a t;EtiYARK 61SURANCE COMPANY• I ' '!: l': - a aa•f>a,c a..r�,+.r•v• .. a raw> .. ,' .. a.«a•.n..a.c .n>^ t'r�I i" t (III C l CUEt t !;SUi•A}iCE C0,1, f,,IY Of ALIERIG4 >> A•:AMCM AND FO EIC I h;SURAlCZ M, IV Y Il •1 � •n1,1 a.0..Aro,ul.n y a nan una c..rv.,non i�I I. r. ;: t itiE lC iD9n 1t LA;iC.+Stiin_ii;SU •';C CO,LTD. i��`�;:: WECU„3D INSUR NCE CO',1PA+;Y . (I :,Lit"1 1IU4 a.r t>, 17 aM rr At.l ,1 _ •'jam ,A CO—ClK Cn\ranA—H • :'�, �,1��J Nar(fatl,C:nal;lltvl iai� •I,,� ,:•. •� i - - ! P.'•4 f111L]Lil �+ iGk'ti1C3 to 2'IIl• ---Exavitivo Offic:t 10 stro.3% yori:,Now York 10038 KNO1tI Al,'., i:12N BY' 1.4:;;SE PB.FSI:NTS: 'till% ^ r t .- Lq nfVy. 1 P f - 't tt�c, Signal Oil �.:ld Gas Co:rrrny, a co_;o� t.a,., I,t-.c.^, .; c Led �. :Lncip,_l, . •-d the Dn' n! Con]: -y, r» Co'.-^.`_..ay O��C:'.1 l znid c:::zt-inn- une-•t^,r 'nd by ;'a0 lat'15 Ci i:-10, St_'o Qf NCw:'O�:i, a^•Cl '_.L'C-oriscc: tQ tr i,.--act O::s1.cCs in tie St,-.to 2S SLIi'cty, lii:i Ci.n^ %r Ci aid S:lr�:y� arc ih Ole .a d f i:i mly t.oL-ld Unto is Tide ,itsLlr.^_i,Ce and Tiuot COi21«'"."_ily, i]3 calledOi�l'.�CC, 1 h the sum �j�•Ij I ; ^- ^nT a' n • .C.I`"" a AIii�:T'.C:1, for t:.. p:,.yT:lentr�l :,� •1• . 3,eTeinall'ter ret fori11, lar/Lul Iiio=y o_ t,10 lJ7]it a zatcs OL FFF .t 1:i tliliCh rJc?ll a71Ci truly i0 i a ma do,C', W3 bi,1Ci OL iCC14'e3, O,]r i1GirSP executors and .uccessors, jQ,ntiy and .,evo.t-ally, firmly by Uiozz, prooe11•.s. 1,?ER ASt ::3 Princi;^1 On \Tt.lf 1, 1.�C;� t':tCi:Cl i;'.io .1 lc;1se v.gth Cl<_:ra J. !senor, �I >rle, Newland TzrboO. Cli:ltO:h C. '1'owl-nd Jessio U. Corbin and a10ih:1 D. 1C`llland ' I' h1a w e� r W. T f V 1 rt__. w tzt s \".. l'.ly 0 t ^n 1�-'•', .`i +• � •"15LC a OL tih3 � T. � CI ai;d J,Lti.':,. ,�.c'".t..,tt9, ul:, �CCUC; t ✓ a^.r:1G1:]Cl...d Ou OC_Ol:.,i J , •. ' .059 and April 5, �1963, and _L 3,RF,ASr the Principal also On jay 1, 19EO cnt.Ored into a lease Vlith Lawrence O't;j 'A'llornburgh, and Ijulu %'. TiLornburga, a-.d _ ,•,.:• V-!i-., RTAS, ti13 Princi, 1 on S..;_ea]t,..1 12, irJCJ e..:c.Oci ,r.tQ :t iU,4..r,er Ground •!�, DCLease viitiara BroiheT3, a coypozct=oi, as arnerd; , a:nd I +1 ;t z ,•SEAS, ti a Prirci--�l. a c. L hava, _ .r1L1 r,d L _,... ,.,LC G :i 2 CQiI;OraiO.. aS i t.atOT3, ` � v ucltered in'o a T`a,-'-- re^len' dntcd Fabr a=J 1, 1C✓^V tiii ".e G:.i'-0a, Ti �tnc Trust C as rn__+..w p t C, 1. U.. ram-. w i,.. .-• � _w �'• IL•1SLIA 4^.nCQ W_CA 1rt:IiL �✓G111'Jw,y, 4J 11I.:1.C4, Y.•laCu ._:K 11L: L . j:\r.+l.•ri.lt �.QYL�i' J • j'1.�� t . •: , 1.Oe the CSi4liii:7hrac 't Qi a Signal. I ::rrcl %c GL;1, a S•-]I:d iL'.'C.iajC P-yr.it?; iiCcoun is aslcr'al. Surplus Account, ird C. Doa:.3 Resorvo AccoC:_":t, "_;]d a15Q riA.'1L. iOr i1 Ci • -1VL-v; 01 sacur ity for tile Til^iili'.-u'.L.CO Gf 6%C NeCli:. d c Ld T%O:i bar;i] lv'a:3S, aJcl ,- . ' ; • Wr:i;RFAS, the Obligee desires to secure -itself against loss by reason of the breach � f. n C wy Signal Oil and Gas Company, a corporation, of any of those covenants contained said Trust Agreement raoardin the payment o; rent or other charges as required ` I i oy the terns of the Newland and Tnor::huroh leases, by requiring the Principal to w1, deposit the su-m of $750, 000.00, or in lieu of such cash deposit, a corporate surety L. bond initially ',n the amount o;_$750, 000. 00...... _ . _ ..:. ._. _ _.. !'.., }% •1 ,'- ` ti OF TITS OBLIGATION IS SUCH, tilat, if 1'J• �r -- CO�iDI L i0t L 1•.OW, 'TL r R,Jr O:jE, T:LL Gignal Oil anti Gas Company, a corporation, shall indemnify the Obligee against" �;`lj ..-.1 :: Liss sustained by the'Obligee by reason of the failure of the Principal to pay o •• t (Mu se to he paid or discharged waen due and payable any rent or charge payab'e or rI\ II ;r iQ be discharged by the Principal under the Newland oh• Thornburgh leases, respectively, or under the terms of said Trust Agreernent, in acccrdiance with the.. r,blioations of said leases and said Trust A;reemant; then this obligatLon•is to he'.' void;•etnervrisa to rall_ain. in full iorce and effect. L .,I • I••+ L •, t *.t I `I t , .,t �,•,; ' I` j. II,1'I •.•� a Ji• •�,t� .y , 1 , .r t I., :r � ,•.� 1 � i'• L � r f 1 7 `i 1;71 r\�t it . i � .. .'•-..I u,.rf r •• 'f•!r n••I r.n.. +.i . af'r.y-�,• .,..l n•- ' f,...r.. - r. r•.a .. ' 1 11ovised April 14, .1963 :', f I' EXHIBIT T i• ' �.�l /' " ➢.aY.�rrr��r+J':-T-r•'* +•ear•v,.sr4'.I.I.r'�c-,.,-i.�Tf,rs.a ...�•s:t:f�r�--�..{+rr-�S.z-a-..+-e+..-.•-r.-•r.�s,.-. '[•',' S ' 5 • pane ?. fond No. This bond sh; . remain in full. force and effect for a pericci of ten and one-half years (10-1/2) from the effective sate of the bona, wn:ch effective an shall commence no Liter th-MI Sops ember, 1�,C-9, Duriiif�',- ti:C pe)•lod, of the Cif(':CtiVC LCrm' • of this bond the )c,n;•lt hail be ::e:iuccd iri thL, foilovirn,; mannL.r, as fundsr.rc '• �•-•� ' •:{ : t. `.accumulated in tho Signal Purchase payment Account pursuant to Article VX of tlio t ' _. .•Trust Agz•ecmcnt• t _ Extent of Surety's Liability �1 At commencement date :; $750,000, When Trustee shall hold on depc -tit the Burn of $100, 000. 00 1n the Si f;nal Purchase Payment Account 650, 000,00 �' I ' -.When Trustee shall hold on deposit t;,e scar: of $200, Ovu, 00 In the Signal Purchase Payment Account 550, 000.00 When Trustee shall hold on deposit the suns of $300,060.00 , in the Sig na? Purchase Payment Account . t' h50,OGO, When Trustee shall hold on deposit the sum of $1100, 000.00 ,~ i in the Signal Purchase Payment .Account 350, 000. 00 i. ' tFr:_en Trusteo shall hold on :iepcsit the sun, of $'-,00, 000, 00 : :�`• _ in the Signal :purchase Payment Account `250, 000.00 When Trustee shall hold on deposit the sum o; $600, 000.00 the Signal Purchase ?payment Account 150, 000.00 ,;•: When Trustee shall ho:d on deposit the sum oF$700, 000, 00 . ; :.in the Signal Purchase Payment Account50, 000,00 '' t •r 'i When Trustee shall hold on deposit the sum of Y`;50,000.00 n the Signal Purchaso Pay inent•Accoditt Ivil , k. _'' rI ,•7 t 1 Revised April 1�. 1860 • • , l l 1. 1 l , _ , r , , • w �cE��ar Dond No. *CNX+1:,SS ALESS-Ph SUM,' ,, fit -, yam;. ram; v ,, .-• :., :;: I '. Sl"?LT !:'� 'QU11-1 0 r-,2ASOi� 07 kr,.r . . //•��iC�•/Ut'v Ukrt;il,`.1i`0�.�����••1����11 'k'r: S1C-:/�a�L k�UC{��.al�!.SL''. 7yi A'.Aw•+1\.l ::C�.OLTl',:!' ' t• '•• • •l.�.i_U�11A1 Jt_•eAl 1.11 Ui1.1J/ f»`::SUS 1 JIGI1✓l:.t'�.'. N1-'. ';I'il•1. ..,`, ..'•r.M:;- . ""a no ovent shall the Suretl's liability bo curn-,lativc, ovon though this bone. continiucs 1ror:I ye^r tc yea"r, 1r10170 th n On ,,:crnturn bo paid, or dccrc zoos bo Ifado hi the amount oA' bt).d as heroinzbovo statoet. ., i'� '!:;" 1•' ' i. .11.�.5 r ITLi�I'Lit�lZ �:GAiX;L''1� �J'Lil,."1', "' •. I' �'• ';'1: '.:til '`,:i,' yA;",No bi-lit, of action ✓;hall accr.uo to otho:° t an the na racci Obligeo, f ;3t r The Suao`t•y shall j i0i; iGC ti \ a itii� CaiIJ C+Qi�UIs 1sSjil tfir`y d2�3(30� •:+ ;•!;.'' ' .. Oi S.t9 duCllk'Ca:CJ,. �i�t•L•f1�tri ,.� �'. 0.; NO suit or action by tho 0,011-00 to recovo . on this bond shall be sustaIn.cct i&. �• ItI11C?S.i l e sumo b3 coiY:itleincod WitRi:l six z noii'" tI dm L date sp cii_oCi in cale D. No assign-ment O: this obli ation and no nnoiiification of the Trust Agreement of tae �:owland or •�hornburb I leases which would affect the liability of tho Surety undo; 'this bond sha11 be made without I'ac express written consent of ` '1 • the Surety. ,. , •,. 1• •1 w L. "This bond shall not be construed as rlry form of titlo insur,nce or rnortga e ; guaranteo insuranc.o. Signed, Se�.1ed and Datod tnio cu:y o; ! ; 1 0 BE VUI/m, Y.Jh L" 1V.r w. --ter/' r�r.N • ' t SIGN u OIL AivD'G�+, "ROIVAT, DZTDE, '"�EM` CO.KRANY 1 "J'. 1.. 1/ { .. , AttorneY- L1- act, 1 .la E ;'I `t•. r r , `. t 1 +. a- 1 \ t .\ '` yr .i ,1,.i �: �iS , 1. - :• ,••`r'::', {(.�1:,t'1 ,`i�.j�� •�••' ..t' �:,_.e 1,��: It '.' '�`i�' 'it�', t ,V' • ty ',�'' 1 ' 7 ••�•�� .i '1•J r ( t 1 1 11•i`, , .,• t :, .',It. .• 1 , , �j .:p,AI t 1 r 1�' n '1 ., tr � ' ' • t( ,ii�"%,, { 1, - .1 11. , `�,, , ! i , r' �',`.,''; 1. :' , � 1 r 1 I :1 1• t V 1 if, , t•1 \ , �Ij I f ," / + ). 1 / .t J ti • 1� '�•;� j' St +'li ' +• `• , 1: .! , 1 •1;•1 ;1..,- •, l l r t t, , 1 .S,', !•1 ' r 1j 17 1 I 1.. r n i. 1.•1' 1 •�• ( - • , + '� •�..1, j 1, 1,' t + ..«.t...el iLt• •,'.'l l r I„*,'r.`y. •'•, ,'' 1, ' Revised April SAS, 1066 � ,�:'+ 1 � •; I OR •