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Home My WebLink AboutC-2077 - Escrow Agreement in Connection with Price Controls on City OilNEWPORT BEACH OFFICE OF THE CITY CLERK (714) 640 -2251 April 2, 1979 Security Pacific National Bank Newport Center Office Post Office Box 1760 Newport Beach, CA 92663 Enclosed are Escrow Instructions in connection with the action involving the City of Newport Beach, Armstrong Petrol -um Corporation and Kern County Refinery. The instructions have been signed by the City of Newport Beach. Will you please send us a copy of the fully executed Instructions when completed for our files. Thank you. DORIS GEORGW City Clerk DG:ms Encl. City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 GENERAL SECURITY PACIFIC NATIONAL BANK ESCROW No ._.._169. - 7414.-- ..._........_ Wic.at Search of Title ESCROW INSTRUCTIONS ___ Febr_u.agy... -_ , i97._4 -.. -- To: SECURITY PACIFIC NATIONAL BANK THESE INSTRUCTIONS SUPERSEDE AND AMEND ESCROW Newport Center OFFICE INSTRUCTIONS DATED FEBRUARY 5, 1979. 1 For the purpose of this escrow, City-_ of Newport•_ Beach -,. -- California,,.- whose.- address--- 1s- .- 330Q - -.• -- 2 NewporE _Blvd Newport._Beacha CA 92663x shall, be •referred_-- to_as -- pat -ty I,..,AzmS.trong..P.etzaleur g Corporation_, a_Californa _corporation,-- whose_address_•,is• P,•_ Q,••- goK.• 15. 4 .ft.,...tietapatt__Beach,_.CA._ 4 92663, shall be referred _to as- _PartyII, and, Kern- _Qounty- -$efi- very-.,-•• InC......a._.cpzpAxatipnt____.- 5. whose addres is Route••6 -,•Box- 336,.1}akersf>eld -,•_ -,•,• 9. 3. dQZ,... ah- a1J_. b- e. .xeLerxed..tR- :as__- Party..ISI. 6 7 You _will be• handed _the_signed•_ Escrow -, agreement•,,• prepaxed ...puta.isl�- .o.£ ... escxpw,._by --- and- .het-waea the parties mentioned above which shall_ become•_ a part, and.. parcel_ hei i epf ,----- •ypuq.r - Bank-Ls _ -•re -: 9 lieved of all responsibility a...,to the - _validity,, regularity,._ and S.u£.f.7 Ci enay- ..p.£..said..Escxaw . _. . 10. Agreement•. 11. .._.._._ .........................._--_-.-.-_-__---_---._.._-._.......--._...---._...._...._....... ........._._............_...... ................ .. .................. ...... ___...... 12. The ... undersigned, - parties_ hereby_ agreg-_ as-,• foliglus;;, �gd-• aCCnxdanF, ly... iaatxuct..and..authoriza__yan:. 13. __ _ _._ .._ .. .... _---_---_ ........ _ ..... .__ ..__.._ ...._.__.. ................. _.. _... _..._.__..._.._..__._..__..._.,-.._..._-_---- 14. Upon the_gAning -of_ these-_ i_ nsGr�? ot�pmS,.. .PaxCy...III_- wila..hand..ynu__ the.. s um ..of_.$31,0<i7._fi5.i_.....__ - 15. fiUm.ed_Axistrustt;LQrW . -ft pm..all.. parties >.. said. ..funds...plus...a1L.._. ...... .. 16. monthly deposits hereafter from -Party III., - -• shall•_ be ._withdrAwn.. from _the.- escrocq trust - _fund••__• ! 17 account and deposited in a.n interest bearing__ passbook- _savings•_account•- at the,_above,- office_,- 18 in the name of eSecurity_Pacific Nat............................ onal Ban"x as.. Escrow in- •);scroll_ -Tl�o ..16.9.2414•,,-. - -- 19. ........... _ ............ _ ....... ..... ........ ................................................ _..................-........-_-.--...---- ..----------------- .....__. At which time the balance in the savings account reaches �100,000.00,._or..more, you are•, to 20. ..- _ ...... ............................... 21 withdraw $100,006.00 to purchase a ninety -day Certificate of Deposit. payable- to "Security _.. _ 22 Pacific National BankYt,�as'Escrow Agent in Escrow No 169--,7 14 At maturity of each__ninety- _ ._ --- _-....... - . ........ .......... ............. .. .. •-- --- -..-_ ..- -... -... . --•-- .. 23 day Certificate of.Deposi.t, you,are to reinvest the X5100 ,000.00, and._all interest- _accrued 24 thereon, in a like Certificate of Deposit __ ..._.. ..... .... ------------------ ... _.. ----------------- ----- -- --•- - - - - - -. ...._ -- -- - -. --• -.- 25. _-.-. ... __...-•------....._...................... ......._........-----....---...............__.._........... .._..._..- ....._._.- _._......._ ...._ _. _..... -- -- ........... 26 In the event, you receive a jointly approved._claimand•_there is not sufficient- ••funds- _in, - -_ -- ....... the savings account to pay same, you will be _instructed whether -_t o._Iiithdraca._the••funds ....... 28 necessary from_the.Certificate_.of Deposit,_and- •pay••pepalty,•_ot to -hold s- aLd- •_ela- lm_??l..this - -•• 29. escrow until maturity -of -- Certificate of Deposit -• ....••• •.• __.., • _ ••-- _• - - -�_- -. _ . ..... - - ' 30. ..._._..._ ........................_.........._......._....0................................__...............__....................................._...._....._..__._..__.-- ............................... 31. At the end of each calendar year•,•.•you- _are_authorized to, withdraw,_ frot n- -thg -- •sayings - -- account. >. ... _ - •.......... 32. $200:00 plus X510.00 per, each..transaction handled in this„ escrow,,•• represent_fng..youT_.eSCxQw..fe 33. .._.__..__.... . .................... .... •-- ............................... ............... ... . .......... ... ...................................... •--- ..... - -- •- ....... .. - -- .. -_... _._.._....._ 34 Providing there have been no instructions -_to•_ the.• contr gxy,..An ... the..Esczgw.Agrs emenZ._Ax_.A -therw _.... - ...... ..... .. 35. you_ere -_to withdraw all funds from._ savings•_ account... and /. -4r. -. Carta£ irate .(sJ..- of.- Aep.asit,.__at_thei: _.... • 36. earliest._ maturity following -_ the_ Termination._ pate- •of._j_ta7CCh.._15,.._ 19 8. 1,__ .and ... deposit._same-..iutp.__. 37 escrow trust fund account to be disbursed., -- less final escroc¢ charges.,.•. A.FC9sdi.n8..ta_1;acrQx_ 38 Agreement. 39. .................... ... .......................... ... ........ _ .................... . ........................ . ... ................ ............... .................................... -_ ........... ............... 40 The_undersigned_sh411 execute such further authorizations-._ 4X._ 6lgttatule-. .caxdS..ra3._A1ay_.be___.._ -_ -_ 41, required try the Bank .................................... _....... ......- --.............._....... ..... ..... .... ...-................._ ....._...__._......_._.__.....- - - 42. __..---_ ........... . ........... ................... - .............................. .................... .................................... .......................... _- _......... ..._._..._...__.... - .. 48 The undersigned_agree that the•_Bank's_.policies and applicable -_ labs ,_regarding._con- dtions•_of 44. deposit =_withdrawal and interest payment, shall _be._follo d,- _igcl>l�liflg, bct...n4t__llmated -to - -_ 95. the conditions -.set _forth itt• the• passbook, and •certificate- of_- peposlt -, -_ -• - --- 46. .. -- _.......-- --•----0 - --- --- -... ._. _...... - ...... . .......•-_..............- - - -•-- .. .- - _ -- -- ----•- -------- 47. Security. Fa,ciFic .iationa.1.,B..A_S,__as -•g crow••{Igect,_may..withdraw -. the. -. �nds ...by...its...axim-aignature 48. authority_. ,- erted above and follow • the- _d}sbur;:-emt Rt__ S. chadnle .as...pPr..xaid_agreement_- mentioned 49. above /or- any- further• amendments. thereto...._ ..................._--•---.....__...-......-....._.._.....--...._...-- s0. .-_• ......... ......... ....................................................... ...•--_......--.._.--._.._...•-•----••---..... _....••-•--- -- -•-__- .4......._: -•-- ------- -••- - ---- - ------- - ------ 51. All -- claims- ,- ._rmen merits_,- _andfor disbursements._ during-- t- he_. .InCPr3Ln_of_th3s_eecr,ow,_must s2. j411t1Y _a4Q>;t�'�y;�..1,2y_sill:earCa€ ,._iil_C�135_�sS.><419, uxt?ess.._Q_tberla a. e_. p? rov1d .Qd._by- _- ES.crawr.Agreeme, 53. PRIOR TO ...... Itiarch ... 15, ... 1- Q &1- ••_--- •.............. ...... each 'party will hand you all funds and instruments,neceesary on his 54. part to enable you to comply with these instructions: 7f the conditions'of this escrow have ndbeen complied with prior to the date 55. set out in this parsgraply or any extension thereof, you are nevertheless to complete the esci•ow`as aoon'as the conditions except 56. as to time, have been complied with, unless written demand abA have been made upon you not to complete it. 57. :Xour Bank is in no• way -•to- be.- concerned with - the ••Proper value•_or•_conditioq _ of _ title_>;o .o /ill 5a_ -for any liens•_that_ maybe filed, or- any agreements between- the-• parties- other- _tihrgit_1- hgs -�- 59• �escrocr_insttuctions•••,•,Xour sole duty, -he>ng to_hold -_ and -- disburse•_ the - fun�t- •.an._xteCOxctance 60. ..L ?ith instructions in this escrow-•.... •• - -•- •• -_• 62. ................................... . .. _ ..._:__.____.. —_ .._ 63 _ - 66. ...... . 69. — .. ................. . ....._�_. ----- 70_ ._... _- -••• --------- ••.--- •-•-- - - -- -- 71. — -------------------- . - __ 73. __ ...................... — .. 74. _ - .. _ _ _ _ n - 76. - r _ 7E, _.._.._...______ .. ........... __ _.................. _...._.._. 79. ___— .........._. ........ ._......___...___._ ___._._.___.— .___.._..._.. _ _.. ........... - - BO ..... .......... . ._.......__...___._._..__..._._ ._....._.._•_•__ — — — E2.- ---:— ................... ......................... _:. ............. ............. - - -• - -- • 83 _.._.__.._._... _ ............. ...... - _._..._._... _ ___.- --••-- ••••---Z- -.._.. _ P4. ..- ................... - ........................................ .........................---._ .__._.::......_....._...... -• -- - - ............. ........ - 95. _ ..— .......... ._.._ _ .. ............ ._..... _ ... .....— .._.— ---------- •- - ------ .................. — ..c . ' - 87 -- 89. 90 92. . Make proration& on hnsis Wday month. Make disbursements by your check; checks not presented for payment within six months after date are .' ject to service charges in accordance with Bank s schedule in effect from time to time. Documents and checks in my favor to be mailed to my addresa :-` You will, as my agent, assign any fire. and other insurance of thine handed you or that Beneficiaries inform you they bold. - Cvhen properey being eouveyed is held in Joint Tenancy any cash derived therefrom in this escrory shall be construed as Joint Tenancy funds. 1 You shall be under no obligations or liability for failure to inform me regarding any sale, loan, exchange, or other transaction, or facts vritida y{ knowledge, even though aamq concern the property described berein,.provided theydo not prevent your compliance with these instructions, nor shall you liable for the suMniency or correctness as to form, manner of execution, or validity of any instrument deposited, nor as to identity, authority, or arty person executioy; the same. Your liability as escrow holder shall be confined to the things specifically provided for in my vrritica instructions is this c..cr 1 Should you bcfare or after tluse of escrow receive or become aware of any toa6icticg demands or claimswith respect to this escrow or tberights o` of the parties beret,., or shy money or prupeny deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on y part until such conlli.a is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the do mination of such conflict: Tho parties bvreto jointly and severally agee to pay all costs, damages, judgments and expenses, including reasonable attornd fees, suffered or inrurrrd by you in ronnectiun with, or arising out-of this escrow, including, but without limiting the generality of the foregoing• n suit, interpleader brnoz;la by yon. fu the event yon file a suit fa interydeader, you shall ipso facto be fully released and discharged from all obligations furtheme perform any anti all duties or obligations imposed upon you in this escrow. Ci.t of Newport.Beach, California Armstrong Peftoleum Corporation ,., -a n (`t California corporation - Signature Bv: -1 W , Signature By a or ro TerEpOre Atte st etc Kern County Refinery, Inc., a corporation Signature BY: (1,11go Two) 57. .....i....s .. .*.i. n . -..n. --I -.o -.- --way -.-..t-.-.o . -.- ..be .....c.. o.n.. c..e.r.ne.d ..w* i--t-h --- -t-he - - prqpeK..KIAAp ..2K_.!nnqit�jon_of . .t.i.. t . l.e ..t..... .... i1 58. . . . .that maybe .filed, I.r ....... 59. escrotu an Gructions.,_,,,Your 60. yita..ins...t..r Lc .tions . .. in . .t..h...i..s .. escrow„ __ . ........ . .......... . . ............................... ...... 61. 62 .... . .............. . ... . . ........ . .......... 63. '65 . ........._ « ................. 66. .... . ................. ----- - - 7 67 . . ... . ................. ----- - - 68' . . . ........... 0 .......... 69. '.-' . ... . ........... 0 ............. 70. - - --- - ------ - ------- - - 71. 72 � . ...... 73. 74. ............. .......... . .... . . 75. 76. . ..... 77. ....._......... «.. . ...... . .......... .... -7 77- 78. ........ ...... 79, ------ 80... . . ..... ............... ..... . ...... . ..... 81. ............. . ...... 82. ------------------------ - ----- 0 --- - ------ 83. - --- - -- - -------- 7 --------------------------------------------------------------------- . « -« -- __ - :.- ._- .....•-- _..._: &1. -.0 ................... . ... . .. . .. . ..... . .............. 0 . . .... . ............. . ....... t5. -.- . . ...... ..... . .. . .. . ........ 0- ............ -- E6. . . .......... ........ .......... . .............. . ........... . ................ . ............ . .................. . . ...... . ....... . .. . . ...... .... .... 87. ....... .............. . ........ .................. . . . . . ........... . ......... .................. .......... r , -.1 ., . I . 1. - ... - Ea. ...................... . ...... . ........ 0- ......... . . ................... . - - - -------- .............. 89. . . ........... 90. - - ---------- - -------- - ----- - ----------- - ----- 91. -7 --- - ----- --- - ---- - ---- - -- ------ ----------- 92. .............. .. Make prorations on basis 30-day month. Mate disbursements by your check; checks not presented for payment within six month, after date art! 1 ject to service charges is accordance with BanL.'s schedule in effect from time to time. Documents and checks in my favor to be mailed to in)' address b_ You will, e9 my agent, assigit any fire and other insurance-of mine handed you or that Beneficiaries inform you they hold.. When property befog coav7yed is held in Joint Tenancy any cash derived therefrom in this escrow shall be construed as Joint Tenancy furtilti. You shall be under no obligations or liability- for failure to inform me regarding Buy sale, la--;i, exchange, or other transaction, or facts Nf;thlri knowledge, even though mine concern the property described herein,. provided they do not prevent your compliance with tbcse instructions, nor shall yol liable for the sufficiency or currcctitc� us to form, manner of execution, or validity of any instrument deposited, nor as to identity, authority, or right: any person executing the scone. Your )!.ability as escrow holder shall be confined to the things specifically provided for in my ivrittai ins!ructioas in It1h Cie(it Should you lwforo or after close of escrow receive or become aware of any conflicting demands or claims uritit respect to this escrow or the rights of of the parties hereto, or any money or property deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on y pa until such cmillia 6 resolved to your sittislaction, and you shall have the further ri.-lit to commence or defend any action or proceedings for the dz mination of such cuallia. The parties hereto jointly and severally agree to pay oil costs, damages, judgments and expenses, including reasonable Etto-rri fees, suffered or irir.i ivd by you in etinnectiun with, or arising out of this escrow, including, but without lirnitin.+ the generality of ilic, foregoing a su! interpleader brought by yon, In tl%c cicitt you file a suit in interpleader, you shall ipso facto be fully released and discharged from r.11 obligations icrilit perform any and all thitivi or ohlij;ntions imposed upon you in this "crow. City of Newport 'Beach, California' Artitstron oleum Corporation, ,.a iforn; rporati6n SignatureB� \Signature B, Kern County Refinery, Inc.,. a corporation Signature (Page T. ro) 57. '.Your•Bank•_is :_in -_no- •way- _to•_be - .concerned with the pro(?er_ value•- or••condition of ... title to oil --. --•-•• .---- 58• for any- liens -that maybe. filed •or .any __agreements -_ between•_ the•- Qart jfe§_otherthan__thGS,, -_• -•! 59. escrow instructions - -• gout sole• - duty, bg }ng_to•_hold- and_disb r us..... gun�ig i- B- _xlcGOrdan -ce__; 60. with instructions i_n_this escrow _ _ 61_ - -- - - ---•- - - -- ........ . . .. . . .. . _ . ....... ............... 62. _ .. . ... ... ........... ».......: 63. -_ ,_.......... .................- •••-- ..._._.. .. .._...__._.....- ..__._ _ : - - _-- _- - - - - -- ... . -. '65 . _: ._..- ... _. » .............. __..__ 70. 72' .............. .... -__ ... :_. 73. __..__ .1.._------- 76. - — -- __ -_ _ - -- —t- 79. . . -_ ._- _...._...._.._- P11. — ............................. ........................ -•-••--••- •-- -- _.- ...... _. - 85 ___•__ —• -- 87. _ ............ .--_--•-'. _._......--- --------- --- -• -. -.' ,.—_.-__,.---_ ...... _ ... _-__---'--•_•--.._-..._.—•__•'__.--_..._._ .......... __.-.._.._-.._— ..._. ---------------------- --- _ 90. z Blake prorations on bnsis 30 -dny month. ifa1•e disbursements by your check, checks not presented for payment within six montbs after date are jeet to service charges in accordance with Bank's schedule in effect from time to time. Documents and checks is my favor to be mailed to my addresa bv' You will, rs my agent, assign any fire and ,other insurance of mine handed you or that Beneficiaries inform you they hold.- , When property being conveyed is held in Joint Tenancy any cash derived therefrom in this escrow shall be construed as joint Tenancy funds, You shall he under no obligations or liability for failure to inform me regarding any sale, loan, exchange, or other transaction, or facts within knowledge, even though mme concern the property described herein,. provided they do not prevent your compliance with these instructions, nor shall y:? liable for the suriciency or correctness as to form, manner of execution, or validity of any instrument deposited, nor as to identity, authority, or r:.-h: any person executing the same. Your liability as escrow holder shall be confined to the things specifically provided for in my w-rittea instructions in this sc Should you la foro or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or therighu of of the partien beretm, or any monoy or property deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on part until such entJlict 6 resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the d minatimt of such cwtilia.'I'luc parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorr. fce>, suffered or by you in connection with, or arising out of this escrow, including, but without limiting the generality of the fom�, oing, a sci interpleader brnu;ht by ywl. 1n the event you file a suit in interpleader, you shall ipso facto be fully rcicased and discharged from all obligations furihc perform any and all dmtiea or obligations imposed upon you in this escrow. City of Newport ,Beach, California Armstrong Petroleum Corporat ion, •_a California corporation Signature P.y: __ Signature By: F1ortda Kern County Refinery, Inc., a /corporation Signature BY• :� U. Vice President—Finance 0 CITY OF NEWPORT BEACH CALIFORNIA City 11.111 7300 W. Newport !stud. Area Cade 714 - DATE February 23, 1979 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. 2077 Description of Contract City Oil Price Controls Authorized by Resolution No. 9509 , adopted on February 12, 1979 Effective date of Contract February 23. 1979 Contract with Armstrong Petroleum Kern County Refinery, Inc. ** Address P. 0. Box 1546 Route 6, Box 336 Newport Beach, 92663 Bakersfield, CA 93307 Amount of Contract (See Escrow Agreement attached) ** Security Pacific National Bank S50 Newport Center Drive Newport Beach, 92660 city Clerk IT J d J I OFFICE OF THE CITY CLERK nATE February 23, 1979 TO: City Attorney SUBJECT: Crude Oil Purchase Contract (C -2077) Attached please find three executed copies of the Escrow Agreement between the City of Newport Beach, Armstrong Petroleum Corporation, Kern County Refinery, Inc., and Security Pacific National Bank Newport Center Office. This agreement was approved by Resolution No. 9509 at the Newport Beach City Council meeting of February 12, 1979. Please send copies of this agreement to any interested parties. Thank you. z ii 7 ESCROW AGREEMENT This Escrow Agreement is dated Gcl,l�9 :� 3 , 1979, and is between the City of Newport Beach, California (here- inafter referred to as "City "), Armstrong Petroleum Corpo- ration, a California corporation (hereinafter referred to as "Armstrong "), Kern County Refinery, Inc., a corporation (hereinafter referred to as "Kern County "), and Security Pacific National Bank, Newport Center Office (hereinafter referred to as "Escrow Agent "). W I T N E S S E T H: WHEREAS, City and Kern County have heretofore entered into a Crude Oil Purchase Contract, dated March 10, 1976 (hereinafter referred to as "Contract ") pursuant to which all oil produced and saved from West Newport Offshore is sold to Kern County: WHEREAS, pursuant to such Contract Kern County pays City one - eighth (1 /8th) and pays Armstrong seven - eighths (7 /8ths) of the value of said oil; WHEREAS, a question has arisen as to the proper price for said oil; and WHEREAS, the parties have agreed to establish an escrow (hereinafter referred to as "Escrow ") consisting of cash deposits by Kern County. NOW, THEREFORE, in consideration of the premises, and of the mutual agreements, provisions and covenants herein contained, and the mutual beneifts to be derived therefrom, the parties hereto have agreed and do hereby agree as follows: 1. Sums Received by Escrow Agent. 1.1 Simultaneously with the execution of this Escrow Agreement Kern County has caused to be deposited with the Escrow Agent the sum of $31,047.65, being the difference between the old or lower tier price for the oil delivered under the Contract in the month of December, 1978, and the price for such oil as certified by Armstrong, and shall on or about the fifteenth of each month (commencing with the month of February, 1979) deposit with the Escrow Agent a sum determined by the difference between the old or lower tier price in effect, if any, for the oil delivered under the contract in the immediately preceding month and the price for such oil as certified by Armstrong, which sums and any increment thereto are all hereinafter referred to as "Escrow Assets ". The Escrow Assets will be held and distributed by the Escrow Agent in accordance with the terms and conditions of this Escrow Agreement. The Escrow Agent hereby acknowl- edges receipt of the aforesaid sum of $31,047.65. 1.2 The Escrow Agent shall hold the Escrow Assets only in a savings account with, or in $100,000.00 or more time certificates of deposits purchased from, Security -2- Pacific National Bank, bearing interest at the maximum rate allowed by law, and payable to the order of said Escrow. 1.3 The Escrow Agent shall furnish a monthly report of the Escrow Assets, and how held, to City, Arm- strong and Kern County. 2. Termination Date. Except as otherwise provided in the Escrow Agreement hereof, the Escrow Assets shall be held by the Escrow Agent until March 15, 1981 (hereinafter referred to as "Termination Date "), or until 50 days after the termination of all contracts between Armstrong and City, whichever is later. 3. Distribution and Deliveries. 3.1 If on the Termination Date no claims have been established or are then being asserted in accordance with paragraph 3.2, then upon maturity of the savings account or the time certificates of deposit then held, the Escrow Agent shall without further instructions forthwith deliver to the City one - eighth (1 /8th) and to Armstrong seven - eighths (7 /8ths) of the then balance of the Escrow Assets. 3.2 Anything herein to the contrary notwith- standing, if either City or Kern County notifies Escrow Agent, by a notice complying with the relevant requirements of paragraph 4 hereof, that it or any other individual or entity, including the Department of Energy, is asserting any claim against the Escrow Assets on the ground that the -3- ceiling price for all oil produced and sold from and after September 1, 1976, from West Newport Offshore is the ceiling price for old or lower tier oil, then Escrow Agent shall continue to hold and retain the Escrow Assets to the extent of the maximum dollar value of such claim asserted under the terms of this agreement until such claim is resolved by and Escrow Agent has received: i. A joint written direction of the City and Armstrong and Kern County, or ii. A final order, judgment or decree of any court holding that the ceiling price for all oil produced and sold from and after September 1, 1976, from West Newport Offshore is the ceiling price for old or lower tier oil, or iii. A final order or determination of the American Arbitration Association as a result of the type of dispute set forth in paragraph 7 hereof, or iv. A final Remedial Order, Interim Order for Immediate Compliance, or order of the Federal Energy Regulatory Commis- sion holding that the ceiling price for all oil produced and sold from and after September 1, 1976, from West -4- • • Newport Offshore is the ceiling price for old or lower tier oil; provided however, that distribution pursuant to this subsection (iv) shall not occur if Escrow Agent receives notice prior to the date on which a refund of overcharges is required pursuant to the terms of such order, from any party complying with the relevant require- ments of paragraph 4 hereof that such order has been stayed by an agency or court of competent jurisdiction. If at any time thereafter Escrow Agent receives a notice complying with the relevant requirements of paragraph 4 that the aforementioned order has become presently effective, distribu- tion pursuant to the terms of such order shall be made. Except as otherwise provided in subsection (iv) of this section 3.2, following receipt of any of the orders or instructions described in subsections (i) -(iv), inclusive, of this section 3.2, Escrow Agent shall distribute assets according to, and not sooner than required by, the terms of such instructions or final orders. A copy of any such notice, sent by City or Kern County, shall be forwarded by -5- the Escrow Agent to the other parties hereto. 3.3 At maturity of each of the time certificates of deposit, the Escrow Agent is hereby instructed to rein- vest the Escrow Assets, and all interest accrued thereon, in a like time certificate of deposit (one or more) as that described in paragraph 1.2; and the Escrow Agent is hereby instructed to transfer funds from the savings account to a time certificate of deposit at such time as the savings account balance reaches $100,000.00. 3.4 Notwithstanding any other provision of this section 3, the Escrow Agent shall follow any written in- structions signed jointly by City, Armstrong and Kern County with reference to the distribution and delivery of the Escrow Assets and with reference to holding or depositing the Escrow Assets, whether before or after Termination Date. 4. Notices. 4.1 Any notice given by Armstrong or by Kern County to the Escrow Agent pursuant to any paragraph hereof shall be in triplicate, shall be duly executed by an officer thereof, and shall be personally delivered or mailed to the Escrow Agent by registered or certified mail, postage prepaid, with a copy each to City and the other party by registered or certified mail, postage prepaid. 4.2 Any notice given by City to the Escrow Agent pursuant to any paragraph hereof shall be in triplicate, Q. 0 shall be duly executed by the City Manager of City, shall be personally delivered or mailed to the Escrow Agent by registered or certified mail, postage prepaid, with a copy each to Armstrong and Kern County by registered or certified mail, postage prepaid. 4.3 Any notice asserting any claim as permitted in paragraph 3.2 hereof, shall set forth: (a) the amount claimed and (b) a statement of the grounds upon which such claim is made. 4.4 Any notice (or copy of notice) to the Escrow Agent shall be addressed: Security Pacific National Bank 550 Newport Center Drive Newport Beach, California 92660 Attention: Escrow Department 4.5 Any notice (or copy of notice) to City shall be addressed: City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California 92663 Attention: City Manager 4.16 Any notice (or copy of notice) sent to Arm- strong shall be addressed: Armstrong Petroleum Corporation P. 0. Box 1546 Newport Beach, California 92663 Attention: Mr. Robert A. Armstrong 4.7 Any notice (or copy of notice) sent to Kern -7- 0 County shall be addressed: 11 Kern County Refinery, Inc. Route 6, Box 336 Bakersfield, California 93307 Discharge. The Escrow Agent, having delivered the Escrow Assets pursuant to the terms of this Escrow Agree- ment, shall be discharged from further obligations here- under. Except as otherwise provided herein, the Escrow Agent is expressly authorized and directed to disregard, in its sole discretion, any and all notices and warnings that may be given by any of the parties hereto or by any other person, firm, association or corporation, except, however, notice of the final order, judgment or decree of any court which may be filed, entered or issued, and is hereby author- ized to comply with and obey any and all final orders, judgments or decrees of any court which may be filed, entered or issued, and if the Escrow Agent shall so comply or obey, it shall not be liable to any of the parties or to any other person, firm, association or corporation by reason of such compliance or obedience. 6. Duties. It is agreed that the duties of the Escrow Agent are only such as are herein specifically pro- vided, and that it shall incur no liability whatsoever except for willful misconduct or gross negligence so long as it has acted in good faith. The Escrow Agent shall be under no responsibility in respect of the Escrow Assets other than faithfully to follow the instructions herein W¢M contained. It may consult with independent counsel and shall be fully protected in any action taken in good faith, in accordance with the advice of counsel. It shall not be required to defend any proceedings which may be in- stituted against it in respect of the subject matter of these instructions unless requested to do so by one or more of the parties hereto and indemnified to its satisfaction against the cost and expense of such defense. The Escrow Agent shall not be required to institute legal proceedings of any kind. It shall have no responsibility for the genuineness or validity of any document or other item deposited with it, and it shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it to have been signed by the proper officers or persons. 7. Settlement of Disputes. If City or Kern County assert any claim against the Escrow Assets as permitted in paragraph 3.2 hereof, which claim is not, on the Termina- tion Date, also being asserted in any administrative or court proceeding, or any other claim regarding the pro- per distribution of Escrow Assets under this Escrow Agree- ment and should any other party (excluding the Escrow Agent) disagree therewith, the matter shall be submitted to the American Arbitration Association in Los Angeles, California, for determination in accordance with the rules of that Assciation. The arbitrator's decision shall be guided by mom 0 0 the intention of this agreement to provide for distribution of Escrow Assets to the entities which are authoritatively determined to be entitled to them, and shall be consistent wtih any final determination of any court or agency re- garding the ceiling price for crude oil produced and sold from and after September 1, 1976, from West Newport Off- shore. In no event will the arbitrator permit distribution of Assets to Armstrong on the ground that Armstrong was not a seller of crude oil from West Newport Offshore during the period in question. Any such determination shall be final, conclusive and binding on all parties hereto, including the Escrow Agent, which is hereby instructed that it is to rely on said determination. 8. Expenses. The fees and expenses of the Escrow Agent shall be borne by the Escrow Assets. 9. Binding Effect. This Escrow Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective executors, administrators, heirs, personal representatives, successors and assigns. 10. Counterparts. This Escrow Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 11. Governing Law. This Excrow Agreement shall be construed, enforced, and administered in accordance with the -10- laws of the State of California. IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the date first above written. CITY CITY OF NEWPORT BEACH ESCROW AGENT By Title -11- Title May &r By itle Cit: Clerk ARMSTRONG ARMSTRONG PETROLEUM CORPO- RATION By Ti KERN COUNTY KERN COUNTY REFINERY, INC. By Title laws of the State of California. IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the date first above written. CITY CITY OF NEWPORT BEACH By Title Mavor ESCROW AGENT tl'e Cit By Title -11- ARMSTRONG ARMSTRONG PETROLEUM CORPO- RA By Ti KERN COUNTY KERN COUNTY REFINERY, INC. By:2)• S �ss� -� "D. S.CISCH Title VicF PREs"ODE NT- Fi VA N?cE r 0 RESOLUTION NO. 9509 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN ESCROW AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH, ARMSTRONG PETROLEUM CORPORATION, AND KERN COUNTY REFINERY, INC., IN CONNECTION WITH THE PRICE CONTROLS ON CITY OIL WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain Escrow Agreement between the City of Newport Beach, Armstrong Petroleum Corporation, and Kern County Refinery, Inc., in connection with the price controls on City oil; and WHEREAS, the City Council has reviewed the terms and conditions of said Escrow Agreement and finds them to be satisfactory and that it would be in the best interest of the City to authorize the Mayor and City Clerk to execute said Agreement, NOW,_THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said Agreement above described is approved, and the Mayor and City Clerk are hereby authorized and directed to execute the same on behalf of the City of Newport Beach, as well as any Escrow Instructions and amendments thereto required in connection with said Escrow Agreement. ADOPTED this 12th day of February , 1979. Mayor ATTEST: City Clerk DDO /kb 2/12/79