Document:

EXHIBIT 10.6

 

 

GUARANTY

 (Continuing
Debt - Unlimited)

 

 

DATE
AND PARTIES. The date of this Guaranty is November 15, 2013. The parties and their addresses are:

 

LENDER:

THE
COMMUNITY BANK

113
N Fifth Street

 Suite 101

Zanesville,
OH 43701

 Telephone: (740) 454-1600

 

BORROWER:

AXION
RECYCLED PLASTICS INCORPORATED

an
Ohio Corporation

4005 All American Way

Zanesville, OH 43701

 

GUARANTOR:

AXION
INTERNATIONAL, INC.

a
Delaware Corporation

180 South Street, Suite 104

New Providence, NJ 07974

 

1. DEFINITIONS.
As used in this Guaranty, the terms have the following meanings:

 

A. Pronouns.
The pronouns "I", "me" and "my" refer to all persons or entities signing this Guaranty, individually
and together. "You" and "your" refer to the Lender.

 

B. Note.
"Note" refers to the document that evidences the Borrower's indebtedness, and any extensions, renewals, modifications
and substitutions of the Note.

 

C. Property.
"Property" means any property, real, personal or intangible, that secures performance of the obligations of the Note,
Debt, or this Guaranty.

 

2. SPECIFIC
AND FUTURE DEBT GUARANTY. For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and to induce you, at your option, to make loans or engage in any other transactions with the Borrower from time to time, I absolutely
and unconditionally agree to all terms of and guaranty to you the payment and performance of each and every Debt, of every type,
purpose and description that the Borrower either individually, among all or a portion of themselves, or with others, may now or
at any time in the future owe you, including, but not limited to the following described Debt(s) including without limitation,
all principal, accrued interest, attorneys' fees and collection costs, when allowed by law, that may become due from the Borrower
to you in collecting and enforcing the Debt and all other agreements with respect to the Borrower.

 

A promissory
note or other agreement, No. 2312374, dated November 15, 2013, from Axion Recycled Plastics Incorporated (Borrower) to you, in
the amount of $3,500,000.00.

 

In addition,
Debt refers to debts, liabilities, and obligations of the Borrower (including, but not limited to, amounts agreed to be paid under
the terms of any notes or agreements securing the payment of any debt, loan, liability or obligation, overdrafts, letters of credit,
guaranties, advances for taxes, insurance, repairs and storage, and all extensions, renewals, refinancings and modifications of
these debts) whether now existing or created or incurred in the future, due or to become due, or absolute or contingent, including
obligations and duties arising from the terms of all documents prepared or submitted for the transaction such as applications,
security agreements, disclosures, and the Note.

 

You may,
without notice, apply this Guaranty to such Debt of the Borrower as you may select from time to time.

 

3. EXTENSIONS.
I consent to all renewals, extensions, modifications and substitutions of the Debt which may be made by you upon such terms and
conditions as you may see fit from time to time without further notice to me and without limitation as to the number of renewals,
extensions, modifications or substitutions.

 

4. UNCONDITIONAL
LIABILITY. I am unconditionally liable under this Guaranty, regardless of whether or not you pursue any of your remedies against
the Borrower, against any other maker, surety, guarantor or endorser of the Debt or against any Property. You may sue me alone,
or anyone else who is obligated on this Guaranty, or any number of us together, to collect the Debt. My liability is not conditioned
on the signing of this Guaranty by any other person and further is not subject to any condition not expressly set forth in this
Guaranty or any instrument executed in connection with the Debt. My obligation to pay according to the terms of this Guaranty shall
not be affected by the illegality, invalidity or unenforceability of any notes or agreements evidencing the Debt, the violation
of any applicable usury laws, forgery, or any other circumstances which make the indebtedness unenforceable against the Borrower.
I will remain obligated to pay on this Guaranty even if any other person who is obligated to pay the Debt, including the Borrower,
has such obligation discharged in bankruptcy, foreclosure, or otherwise discharged by law.

 

5. BANKRUPTCY.
If a bankruptcy petition should at any time be filed by or against the Borrower, the maturity of the Debt, so far as my liability
is concerned, shall be accelerated and the Debt shall be immediately payable by me. I acknowledge and agree that this Guaranty,
and the Debt secured hereby, will remain in full force and effect at all times, notwithstanding any action or undertakings by,
or against, you or against any Property, in connection with any obligation in any proceeding in the United States Bankruptcy Courts.
Such action or undertaking includes, without limitation, valuation of Property, election of remedies or imposition of secured or
unsecured claim status upon claims by you, pursuant to the United States Bankruptcy Code, as amended. In the event that any payment
of principal or interest received and paid by any other guarantor, borrower, surety, endorser or co-maker is deemed, by final order
of a court of competent jurisdiction, to have been a voidable preference under the bankruptcy or insolvency laws of the United
States or otherwise, then my obligation will remain as an obligation to you and will not be considered as having been extinguished.

 

	Axion
    International, Inc.

    Ohio Guaranty	 	Initials
                
	OH/4XXCHRISO00000000000665020N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page
    1

 

 

 

    	 

    	 

    

 

6. REVOCATION.
I agree that this is an absolute and unconditional Guaranty. I agree that this Guaranty will remain binding on me, whether or not
there are any Debts outstanding, until you have actually received written notice of my revocation or written notice of my death
or incompetence. Notice of revocation or notice of my death or incompetence will not affect my obligations under this Guaranty
with respect to any Debts incurred by or for which you have made a commitment to Borrower before you actually receive such notice,
and all renewals, extensions, refinancings, and modifications of such Debts. I agree that if any other person signing this Guaranty
provides a notice of revocation to you, I will still be obligated under this Guaranty until I provide such a notice of revocation
to you. If any other person signing this Guaranty dies or is declared incompetent, such fact will not affect my obligations under
this Guaranty.

 

7. SECURITY.
This Guaranty is secured by Property described in these security instruments or agreements: A Security Agreement provided by Guarantor
November 15, 2013, for the secured debt of Axion Recycled Plastics Incorporated, Loan #2312374.

 

8. PROPERTY.
I agree that any Property may be assigned, exchanged, released in whole or in part or substituted without notice to me and without
defeating, discharging or diminishing my liability. My obligation is absolute and your failure to perfect any security interest
or any act or omission by you which impairs the Property will not relieve me or my liability under this Guaranty. You are under
no duty to preserve or protect any Property until you are in actual or constructive possession. For purposes of this paragraph,
you will only be in "actual" possession when you have physical, immediate and exclusive control over the Property and
have accepted such control in writing. Further, you will only be deemed to be in "constructive" possession when you have
both the power and intent to exercise control over the Property.

 

9. DEFAULT.
I will be in default if any of the following events (known separately and collectively as an Event of Default) occur:

 

A. Payments.
I fail to make a payment in full when due after a 10 day notice and grace period.

 

B. Insolvency
or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application of any debtor
relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination of existence
by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization,
composition or debtor relief law by or against me, Borrower, or any co-signer, endorser, surety or guarantor of this Guaranty
or any Debt.

 

C. Business
Termination. I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared
legally incompetent.

 

D. Failure
to Perform. I fail to perform any condition or to keep any promise or covenant of this Guaranty which is not cured within
30 days after written notice.

 

E. Other
Documents. A default occurs under the terms of any other document relating to the Debtwhich is not cured within 30 days
after written notice.

 

F. Other
Agreements. I am in default on any other debt or agreement I have with you which is notcuredwithin 30 days after written
notice.

 

G. Misrepresentation.
I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or conceals a material
fact at the time it is made or provided.

 

H. Judgment.
I fail to satisfy or appeal any judgment against me that could adversely affect your secured rights in the Property.

 

I. Forfeiture.
The Property is used in a manner or for a purpose that threatens confiscation by a legal authority.

 

J.
Name Change. I change my name or assume an additional name without notifying you before making such a change.

 

K.
Property Transfer. I transfer all or a substantial part of my money or assets.

 

L.
Material Change. Without first notifying you, there is a material change in my business, including ownership, management,
and financial conditions.

 

M.
Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from the conditions
set forth in my most recent financial statement before the date of this Guaranty or that the prospect for payment or performance
of the Debt is materially impaired for any reason.

 

10. WAIVERS
AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration,
notice of intent to accelerate and notice of dishonor.

 

A.Additional
Waivers. In addition, to the extent permitted by law, I consent to certain actions you may take, and generally waive defenses
that may be available based on these actions or based on the status of a party to the Debt or this Guaranty.

 

(1) You
may renew or extend payments on the Debt, regardless of the number of such renewals or extensions.

 

(2) You
may release any Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer.

 

(3) You
may release, substitute or impair any Property.

 

(4) You,
or any institution participating in the Debt, may invoke your right of set-off.

 

(5) You
may enter into any sales, repurchases or participations of the Debt to any person in any amounts and I waive notice of such sales,
repurchases or participations.

 

(6) I
agree that the Borrower is authorized to modify the terms of the Debt or any instrument securing, guarantying or relating to the
Debt.

 

(7) You
may undertake a valuation of any Property in connection with any proceedings under the United States Bankruptcy Code concerning
the Borrower or me, regardless of any such valuation, or actual amounts received by you arising from the sale of such Property.

 

(8) I
agree to consent to any waiver granted the Borrower, and agree that any delay or lack of diligence in the enforcement of the Debt,
or any failure to file a claim or otherwise protect any of the Debt, in no way affects or impairs my liability.

 

(9) I
agree to waive reliance on any anti-deficiency statutes, through subrogation or otherwise, and such statutes in no way affect
or impair my liability. In addition, until the obligations of the Borrower to Lender have been paid in full, I waive any right
of subrogation, contribution, reimbursement, indemnification, exoneration, and any other right I may have to enforce any remedy
which you now have or in the future may have against the Borrower or another guarantor or as to any Property.

 

Any
Guarantor who is an "insider," as contemplated by the United States Bankruptcy Code, 11 U.S.C. 101, as amended, makes
these waivers permanently. (An insider includes, among others, a director, officer, partner, or other person in control of the
Borrower, a person or an entity that is a co-partner with the Borrower, an entity in which the Borrower is a general partner, director,
officer or other person in control or a close relative of any of these other persons.) Any Guarantor who is not an insider makes
these waivers until all Debt is fully repaid.

 

B. No
Waiver By Lender. Your course of dealing, or your forbearance from, or delay in, the exercise of any of your rights, remedies,
privileges or right to insist upon my strict performance of any provisions contained in the Debt instruments, shall not be construed
as a waiver by you, unless any such waiver is in writing and is signed by you.

 

C. Waiver
of Claims. I waive all claims for loss or damage caused by your acts or omissions where you acted reasonably and in good faith.

 

	Axion
    International, Inc.

    Ohio Guaranty	 	Initials
                
	OH/4XXCHRISO00000000000665020N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page
    2

 

 

 

    	 

    	 

    

 

11.REMEDIES.
After the Borrower or I default, you may at your option do any one or more of the following.

 

A. Acceleration.
You may make all or any part of the amount owing by the terms of this Guaranty immediately due.

 

B. Sources.
You may use any and all remedies you have under state or federal law or in any documents relating to the Debt.

 

C. Insurance
Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on default.

 

D. Payments
Made on the Borrower's Behalf. Amounts advanced on the Borrower's behalf will be immediately due and may be added to the balance
owing under the Debt.

 

E. Set-Off.
You may use the right of set-off. This means you may set-off any amount due and payable under the terms of this Guaranty against
any right I have to receive money from you.

 

My
right to receive money from you includes any deposit or share account balance I have with you; any money owed to me on an item
presented to you or in your possession for collection or exchange; and any repurchase agreement or other non-deposit obligation.
"Any amount due and payable under the terms of this Guaranty" means the total amount to which you are entitled to demand
payment under the terms of this Guaranty at the time you set-off.

 

Subject
to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay the Debt,
your right of set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request
or endorsement.

 

Your
right of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also
does not apply to any Individual Retirement Account or other tax-deferred retirement account.

 

You
will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. Iagree
to hold you harmless from any such claims arising as a result of your exercise of your right of set-off.

 

F. Waiver.
Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any
other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive
your right to later consider the event a default and to use any remedies if the default continues or occurs again.

 

12. COLLECTION
EXPENSES AND ATTORNEYS' FEES. On or after the occurrence of an Event of Default, to the extent permitted by law, I agree to
pay all reasonable expenses of collection, enforcement or protection of your rights and remedies under this Guaranty or any other
document relating to the Debt. To the extent permitted by law, expenses include, but are not limited to, reasonable attorneys'
fees, court costs and other legal expenses. All fees and expenses will be secured by the Property I have granted to you, if any.
In addition, to the extent permitted by the United States Bankruptcy Code, I agree to pay the reasonable attorneys' fees incurred
by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by or against me.

 

13. WARRANTIES
AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Guaranty
is in effect:

 

A. Power.
I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power and
authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable,
am qualified to do so in each jurisdiction in which I operate.

 

B. Authority.
The execution, delivery and performance of this Guaranty and the obligation evidenced by this Guaranty are within my powers,
have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order
of court or governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my Property
is subject.

 

C. Name
and Place of Business. Other than previously disclosed in writing to you I have not changed my name or principal place of
business within the last 10 years and have not used any other trade or fictitious name. Without your prior written consent, I
do not and will not use any other name and will preserve my existing name, trade names and franchises.

 

In addition,
I represent and warrant that this Guaranty was entered into at the request of the Borrower, and that I am satisfied regarding the
Borrower's financial condition and existing indebtedness, authority to borrow and the use and intended use of all Debt proceeds.
I further represent and warrant that I have not relied on any representations or omissions from you or any information provided
by you respecting the Borrower, the Borrower's financial condition and existing indebtedness, the Borrower's authority to borrow
or the Borrower's use and intended use of all Debt proceeds.

 

14. RELIANCE.
I acknowledge that you are relying on this Guaranty in extending credit to the Borrower, and I have signed this Guaranty to
induce you to extend such credit. I represent and warrant to you that I have a direct and substantial economic interest in the
Borrower and expect to derive substantial benefits from any loans and financial accommodations resulting in the creation of indebtedness
guarantied hereby, and that this Guaranty is given for a business purpose. I agree to rely exclusively on the right to revoke
this Guaranty prospectively as to future transactions in the manner as previously described in this Guaranty if at any time, in
my opinion or the opinion of the directors or officers of my business, the benefits then being received by me in connection with
this Guaranty are not sufficient to warrant the continuance of this Guaranty. You may rely conclusively on a continuing warranty
that I continue to be benefited by this Guaranty and you will have no duty to inquire into or confirm the receipt of any such
benefits, and this Guaranty will be effective and enforceable by you without regard to the receipt, nature or value of any such
benefits.

 

15. APPLICABLE
LAW. This Guaranty is governed by the laws of Ohio, the United States of America, and to the extent required, by the laws
of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law.

 

16. AMENDMENT,
INTEGRATION AND SEVERABILITY. This Guaranty may not be amended or modified by oral agreement. No amendment or modification
of this Guaranty is effective unless made in writing and executed by you and me. This Guaranty is the complete and final expression
of the agreement. If any provision of this Guaranty is unenforceable, then the unenforceable provision will be severed and the
remaining provisions will still be enforceable.

 

17. ASSIGNMENT.
If you assign any of the Debts, you may assign all or any part of this Guaranty without notice to me or my consent, and this
Guaranty will inure to the benefit of your assignee to the extent of such assignment. You will continue to have the unimpaired
right to enforce this Guaranty as to any of the Debts that are not assigned. This Guaranty shall inure to the benefit of and be
enforceable by you and your successors and assigns and any other person to whom you may grant an interest in the Debts and shall
be binding upon and enforceable against me and my personal representatives, successors, heirs and assigns.

 

18. INTERPRETATION.
Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience
only and are not to be used to interpret or define the terms of this Guaranty.

 

19. NOTICE,
FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or
mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address
designated in writing. Notice to one Guarantor will be deemed to be notice to all Guarantors. I will inform you in writing of
any change in my name, address or other application information. I will provide you any correct and complete financial statements
or other information you request. I agree to sign, deliver, and file any additional documents or certifications that you may consider
necessary to perfect, continue, and preserve my obligations under this Guaranty and to confirm your lien status on any Property.
Time is of the essence.

 

	Axion
    International, Inc.

    Ohio Guaranty	 	Initials
                
	OH/4XXCHRISO00000000000665020N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page
    3

 

 

 

    	 

    	 

    

 

20. CREDIT
INFORMATION. I agree that from time to time you may obtain credit information about me from others, including other lenders
and credit reporting agencies, and report to others (such as a credit reporting agency) your credit experience with me. I agree
that you will not be liable for any claim arising from the use of information provided to you by others or for providing such
information to others.

 

21. WAIVER
OF JURY TRIAL. All of the parties to this Guaranty knowingly and intentionally, irrevocably and unconditionally, waive
any and all right to a trial by jury in any litigation arising out of or concerning this Guaranty or any other documents relating
to the Debt or related obligation. All of these parties acknowledge that this section has either been brought to the attention
of each party's legal counsel or that each party had the opportunity to do so.

 

	CONFESSION
    OF JUDGMENT. If I default, I authorize any attorney to appear in a court of record and confess judgment against me
    in favor of you. The confession of judgment may be without process and for any amount due on this Guaranty including collection
    costs and reasonable attorneys' fees. This is in addition to other remedies.

 

22. SIGNATURES.
By signing, I agree to the terms contained in this Guaranty. I also acknowledge receipt of a copy of this Guaranty.

 

WARNING:
BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN
AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY
OTHER CAUSE.

 

GURANTOR:

 

Axion
International, Inc.

 

	By	/s/ Steven L. Silverman	 	 Date	11/15/2013
	Steven L. Silverman, CEO	 	 	 

 

LENDER:

 

The Community Bank

 

	By 	/s/ Chris Olney	 	Date	11/15/2013
	Chris Olney, Chief Credit Officer	 	 	 

 

	Axion
    International, Inc.

    Ohio Guaranty	 	Initials
                
	OH/4XXCHRISO00000000000665020N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page
    4EXHIBIT 10.7

 

	LOAN NUMBER	LOAN NAME	ACCT. NUMBER	AGREEMENT DATE	INITIALS
	 	 	 	 	 
	2312398	Axion Recycled Plastics Incorporated	 	11/15/13	CAO
	 	 	 	 	 
	NOTE AMOUNT	INDEX (w/Margin)	RATE	MATURITY DATE	LOAN PURPOSE
	 	 	 	 	 
	$1,000,000.00	Not Applicable	4.250% 

Creditor Use Only	11/15/18	Commercial

  

	COMMERCIAL
    LOAN AGREEMENT
	Single Advance Loan

 

DATE
AND PARTIES. The date of this Commercial Loan Agreement (Agreement) is November 15, 2013. The parties and their addresses are
as follows:

 

LENDER:

THE
COMMUNITY BANK 

113
N Fifth Street

Suite
101

Zanesville,
OH 43701

 

BORROWER:

AXION
RECYCLED PLASTICS INCORPORATED

an
Ohio Corporation

4005
All American Way

Zanesville,
OH 43701

 

1.
DEFINITIONS. For the purposes of this Agreement, the following terms have the following meanings.

 

A.
Accounting Terms. In this Agreement, any accounting terms that are not specifically defined will have their customary meanings
under generally accepted accounting principles.

 

B.
Insiders. Insiders include those defined as insiders by the United States Bankruptcy Code, as amended; or to the extent left
undefined, include without limitation any officer, employee, stockholder or member, director, partner, or any immediate family
member of any of the foregoing, or any person or entity which, directly or indirectly, controls, is controlled by or is under common
control with me.

 

C.
Loan. The Loan refers to this transaction generally, including obligations and duties arising from the terms of all documents
prepared or submitted for this transaction.

 

D.
Loan Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan.

 

E.
Pronouns. The pronouns “I”, “me” and “my” refer to every Borrower signing this Agreement, individually
and together with their heirs, successors and assigns, and each other person or legal entity (including guarantors, endorsers,
and sureties) who agrees to pay this Agreement. “You” and “your” refers to the Loan’s lender, any participants
or syndicators, successors and assigns, or any person or company that acquires an interest in the Loan.

 

F.
Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan.

 

2.
SINGLE ADVANCE. In accordance with the terms of this Agreement and other Loan Documents, you will provide me with a term note
in the amount of $1,000,000.00 (Principal). I will receive the funds from this Loan in one advance. No additional advances are
contemplated, except those made to protect and preserve your interests as provided in this Agreement or other Loan Documents.

 

3.
MATURITY DATE. I agree to fully repay the Loan by November 15, 2018.

 

4.
EXTENSION. The Loan will be extended for two one year periods, subject to the following conditions.

 

A.
In Compliance. No default exists under this Agreement or the other Loan Documents.

 

B.
Additional Extension Term. Extension requests must be submitted in writing by the Borrower. The Borrower must also remit a
payment of $100,000 principal, plus all outstanding accrued interest, in conjunction with each extension. During each extension
period, the Borrower will continue to make monthly interest payments at the rate of 4.25%. All outstanding principal and interest
will be due and payable at final maturity.

 

5.
WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this
Loan is in effect, except when this Agreement provides otherwise.

 

A.
Power. I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power
and authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable,
am qualified to do so in each jurisdiction in which I operate.

 

B.Authority.
The execution, delivery and performance of this Loan and the obligation evidenced by the Note are within my powers, have been
duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or
governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my property is subject.

 

C.
Name and Place of Business. Other than previously disclosed in writing to you I have not changed my name or principal place
of business within the last 10 years and have not used any other trade or fictitious name. Without your prior written consent,
I do not and will not use any other name and will preserve my existing name, trade names and franchises.

 

	Axion Recycled Plastics Incorporated	 	 
	Ohio
    Commercial Loan Agreement	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 1

 

 

    	 

    	 

    

 

D.
Hazardous Substances. Except as I previously disclosed in writing and you acknowledge in writing, no Hazardous Substance, underground
tanks, private dumps or open wells are currently located at, on, in, under or about the Property.

 

E.
Use of Property. After diligent inquiry, I do not know or have reason to know that any Hazardous Substance hasbeen discharged,
leached or disposed of, in violation of any Environmental Law, from the Property onto, over or into any other property, or from
any other property onto, over or into the property.

 

F.
Environmental Laws. I have no knowledge or reason to believe that there is any pending or threatened investigation, claim,
judgment or order, violation, lien, or other notice under any Environmental Law that concerns me or the Property. The Property
and any activities with respect to the Property are in full compliance with all Environmental Law.

 

G.
Loan Purpose. The purpose of this Loan is to purchase equipment and other business assets.

 

H.
No Other Liens. I own all the Property. I have good and marketable title to all the Property. All of the Property is free and
clear of all liens, security interests, and monetary encumbrances, except those to you and the Ohio Department of Development,
or those you consent to in writing.

 

I.
Compliance With Laws. I am not violating any laws, regulations, rules, orders, judgments or decrees applicable to me or the
Property, except for those which I am challenging in good faith through proper proceedings after providing adequate reserves to
fully pay the claim and its challenge should I lose.

 

J.
Legal Dispute. There are no pending or threatened lawsuits, arbitrations or other proceedings against the Property or against
me and affecting the Property, that singly or together may materially and adversely affect my property, operations, financial condition,
or business.

 

K.
Adverse Agreements. I am not a party to, nor am I bound by, any agreement that is now or is likely to be adverse to the Property.

 

L.
Other Claims. There are no outstanding claims or rights that would conflict with the execution, delivery or performance by
me of the terms and conditions of this Agreement or the other Loan Documents. No outstanding claims or rights exist that may result
in a lien on the Property, the Property’s proceeds and the proceeds of proceeds, except liens that would be junior to your lien.

 

M.
Solvency. I am able to pay my debts as they mature, my assets exceed my liabilities andI have sufficient capital for my
current and planned business and other activities. I will not become insolvent by the execution or performance of this Loan.

 

6. FINANCIAL
STATEMENTS. I will prepare and maintain my financial records using consistently applied generally accepted accounting principles
then in effect. I will provide you with financial information in a form that you accept and under the following terms.

 

A.
Certification. I represent and warrant that any financial statements that I provide you fairly represents my financial condition
for the stated periods, is current, complete, true and accurate in all material respects, includes all of my direct or contingent
liabilities and there has been no material adverse change in my financial condition, operations or business since the date the
financial information was prepared.

 

B.
Frequency. In addition to the financial statements provided to you prior to closing, I will provide you with current financial
statements on an annual basis, or as otherwise requested by you, until I have performed all of my obligations under the Loan and
you terminate the Loan in writing.

 

C.
SEC Reports. I will provide you with true and correct copies of all reports, notices or statements that I provide to the Securities
and Exchange Commission, any securities exchange or my stockholders, owners, or the holders of any material indebtedness as soon
as available or at least within 15 days after issuance.

 

D.
Requested Information. I will provide you with any other information about my operations, financial affairs and condition within
10 days after your request.

 

7.
COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and discharged, I will comply with the
following terms, unless you waive compliance in writing.

 

A.
Participation. I consent to you participating or syndicating the Loan and sharing any information that you decide is necessary
about me and the Loan with the other participants or syndicators.

 

B.
Inspection. Following your written request, you may conduct inspection at your expense of my records, business or the Property
that secures the Loan. Upon reasonable notice, I will permit you or your agents to enter any of my premises and any location where
the Property is located during regular business hours to do the following.

 

(1)
You may inspect, audit, check, review and obtain copies from my books, records, journals, orders, receipts, and any correspondence
and other business related data.

 

(2)
You may discuss my affairs, finances and business with any one who provides you with evidence that they
are a creditor of mine, the sufficiency of which will be subject to your sole discretion.

 

(3)
You may inspect the Property, audit for the use and disposition of the Property’s proceeds and proceeds of proceeds; or do whatever
you decide is necessary to preserve and protect the Property and your interest in the Property.

 

After
prior notice to me, you may discuss my financial condition and business operations with my independent accountants, if any, or
my chief financial officer and I may be present during these discussions. As long as the Loan is outstanding, I will direct all
of my accountants and auditors to permit you to examine my records in their possession and to make copies of these records. You
will use your best efforts to maintain the confidentiality of the information you or your agents obtain, except you may provide
your regulator, if any, with required information about my financial condition, operation and business or that of my parent, subsidiaries
or affiliates.

 

C.
Business Requirements. I will preserve and maintain my present existence and good standing in the jurisdiction where I am organized
and all of my rights, privileges and franchises. I will do all that is needed or required to continue my business or activities
as presently conducted, by obtaining licenses, permits and bonds everywhere I engage in business or activities or own, lease or
locate my property. I will obtain your prior written consent before I cease my business or before I engage in any new line of business
that is materially different from my present business.

 

D.
Compliance with Laws. I will not violate any laws, regulations, rules, orders, judgments or decrees applicable to me or the
Property, except for those which I challenge in good faith through proper proceedings after providing adequate reserves to fully
pay the claim and its appeal should I lose. Laws include without limitation the Federal Fair Labor Standards Act requirements for
producing goods, the federal Employee Retirement Income Security Act of 1974’s requirements for the establishment, funding and
management of qualified deferred compensation plans for employees, health and safety laws, environmental laws, tax laws, licensing
and permit laws. On your request, I will provide you with written evidence that I have fully and timely paid my taxes, assessments
and other governmental charges levied or imposed on me, my income or profits and my property. Taxes include without limitation
sales taxes, use taxes, personal property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding
taxes, FICA taxes and unemployment taxes. I will adequately provide for the payment of these taxes, assessments and other charges
that have accrued but are not yet due and payable.

 

E.
New Organizations. I will obtain your written consent which shall not be unreasonably withheld or delayed before organizing,
merging into, or consolidating with an entity; acquiring all or substantially all the assets of another; materially changing the
legal structure, management, ownership or financial condition; or effecting or entering into a domestication, conversion or interest
exchange.

 

	Axion Recycled Plastics Incorporated	 	 
	Ohio
    Commercial Loan Agreement	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 2

 

 

    	 

    	 

    

 

F.
Other Debts. I will pay when due any and all other debts owed or guaranteed by me and will faithfully perform, or comply with
all the conditions and obligations imposed on me concerning the debt or guaranty.

 

G.
Notice to You. I will promptly notify you of any material change in my financial condition, of the occurrence of a default
under the terms of this Agreement or any other Loan Document, or a default by me under any agreement between me and any third party
which materially and adversely affects my property, operations, financial condition or business.

 

H.
Certification of No Default. On your request, my chief financial officer or my independent accountant will provide you with
a written certification that to the best of their knowledge no event of default exists under the terms of this Agreement or the
other Loan Documents, and that there exists no other action, condition or event which with the giving of notice or lapse of time
or both would constitute a default. As requested, my chief financial officer or my independent accountant will also provide you
with computations demonstrating compliance with any financial covenants and ratios contained in this Agreement. If an action, condition
or event of default does exist, the certificate must accurately and fully disclose the extent and nature of this action, condition
or event and state what must be done to correct it.

 

I.
Use of Loan Proceeds. I will not permit the loan proceeds to be used to purchase, carry, reduce, or retire any loan originally
incurred to purchase or carry any margin stock or otherwise cause the Loan to violate Federal Reserve Board Regulations U or X,
or Section 8 of the Securities and Exchange Act of 1934 and its regulations, as amended.

 

J.
Dispose of No Assets. Without your prior written consent which shall not be unreasonably withheld or as the Loan Documents
permit, I will not sell, lease, assign, transfer, dispose of or otherwise distribute all or substantially all of my assets to any
person other than in the ordinary course of business for the assets’ depreciated book value or more.

 

K.
No Other Liens. I will not create, permit or suffer any lien or encumbrance upon any of the Property for or by anyone, other
than you and the existing lien of the Ohio Department of Develoment, except for: nonconsensual liens imposed by law arising out
of the ordinary course of business on obligations that are not overdue or which I am contesting in good faith after making appropriate
reserves; valid purchase money security interests on personal property; or any other liens specifically agreed to by you in writing.

 

L.
Legal Disputes. I will promptly notify you in writing of any threatened or pending lawsuit, arbitration or other proceeding
against me or any of the Property, not identified in my financial statements, or that singly or together with other proceedings
may materially and adversely affect my assets, operations, financial condition or business. I will use my best efforts to bring
about a favorable and speedy result of any of these lawsuits, arbitrations or other proceedings.

 

M.
Other Notices. I will immediately provide you with any information that may materially and adversely affect my ability to perform
this Agreement and of its anticipated effect.

 

J.
No Change in Capital. I will not release, redeem, retire, purchase or otherwise acquire, directly or indirectly, any of my
capital stock or other equity security or partnership interest, or make any change in my capital structure, except to the extent
required byany agreements signed prior to this Agreement and disclosed to you or with your prior written consent.

 

P.
Loan Obligations. I will make full and timely payment of all principal and interest obligations, and comply with the other
terms and agreements contained in this Agreement and in the other Loan Documents.

 

Q.
Insurance. I will obtain and maintain insurance with insurers, in amounts and coverages that are reasonably acceptable
to you and customary with industry practice. This may include without limitation insurance policies for public liability,
fire, hazard and extended risk, workers compensation, and, at your request, business interruption and/or rent loss insurance.
At your request, I will deliver to you certified copies of all of these insurance policies, binders or certificates. I will
obtain and maintain a mortgagee clause (or lender loss payable clause) endorsement - naming you as the loss payee on the
Property. If you require, I will also obtain an “additional insured” endorsement - naming you as an additional
insured. I will immediately notify you of cancellation or termination of insurance. I will require all insurance policies to
provide you with at least 10 days prior written notice to you of cancellation or modification. I consent to you using or
disclosing information relative to any contract of insurance required by the Loan for the purpose of replacing this
insurance. I also authorize my insurer and you to exchange all relevant information related to any contract of insurance
required by any document executed as part of this Loan.

 

R.
Property Maintenance. I will keep all tangible and intangible property that I consider necessary or useful in my business in
good working condition by making all needed repairs, replacements and improvements and by making all rental, lease or other payments
due on this property.

 

S.
Property Loss. I will immediately notify you, and the insurance company when appropriate, of any material casualty, loss or
depreciation to the Property or to my other assets that affects my business.

 

T.
Additional Taxes. I will pay all filing and recording costs and fees, but not taxes, that are required to be paid with respect
to this Loan and any Loan Documents.

 

8.
DEFAULT. I will be in default if any of the following events (known separately and collectively as an Event of Default) occur:

 

A.
Payments. I fail to make a payment in full when due with a 10 day notice with grace period.

 

B.
Insolvency or Bankruptcy. The death, dissolution or insolvency of, appointment of a receiver by or on behalf of, application
of any debtor relief law, the assignment for the benefit of creditors by or on behalf of, the voluntary or involuntary termination
of existence by, or the commencement of any proceeding under any present or future federal or state insolvency, bankruptcy, reorganization,
composition or debtor relief law by or against me or any co-signer, endorser, surety or guarantor of this Agreement or any other
obligations I have with you.

 

C.
Business Termination. I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is
declared legally incompetent.

 

D.
Failure to Perform. I fail to perform any condition or to keep any promise or covenant of this Agreement which is not cured
within 30 days after written notice.

 

E.
Other Documents. A default occurs under the terms of any other Loan Document which is not cured within 30 days after written
notice.

 

F.
Other Agreements. I am in default on any other debt or agreement I have with you which is not cured within 30 days after written
notice.

 

G.
Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate,
or conceals a material fact at the time it is made or provided.

 

H.
Judgment. I fail to satisfy or appeal any judgment against me that could adversely affect your secured rights in the Property.

 

I.
Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority.

 

J.
Name Change. I change my name or assume an additional name without notifying you before making such a change.

 

K.
Property Transfer. I transfer all or a substantial part of my money or assets.

 

L.
Material Change. Without first notifying you, there is a material change in my business, including ownership, management, and
financial conditions.

 

	Axion Recycled Plastics Incorporated	 	 
	Ohio
    Commercial Loan Agreement	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 3

 

 

    	 

    	 

    

 

M.
Insecurity. You determine in good faith that a material adverse change has occurred in my financial condition from the conditions
set forth in my most recent financial statement before the date of this Agreement or that the prospect for payment or performance
of the Loan is materially impaired for any reason.

 

9.REMEDIES.
After I default, you may at your option do any one or more of the following.

 

A.
Acceleration. You may make all or any part of the amount owing by the terms of the Loan immediately due. If I am a debtor in
a bankruptcy petition or in an application filed under section 5(a)(3) of the Securities Investor Protection Act, the Loan is automatically
accelerated and immediately due and payable without notice or demand upon filing of the petition or application.

 

B.
Sources. You may use any and all remedies you have under state or federal law or in any Loan Document.

 

C.
Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default.

 

D.
Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the balance owing under
the terms of the Loan, and accrue interest at the post-maturity interest rate of 8%.

 

E.
Set-Off. You may use the right of set-off. This means you may set-off any amount due and payable under the terms of the
Loan against any right I have to receive money from you.

 

My
right to receive money from you includes any deposit or share account balance I have with you; any money owed to me on an item
presented to you or in your possession for collection or exchange; and any repurchase agreement or other non-deposit obligation.
“Any amount due and payable under the terms of the Loan” means the total amount to which you are entitled to demand payment
under the terms of the Loan at the time you set-off.

 

Subject
to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay the Loan,
your right of set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request
or endorsement.

 

Your
right of set-off does not apply to an account or other obligation where my rights arise only ina representative capacity. It
also does not apply to any Individual Retirement Account or other tax-deferred retirement account.

 

You
will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree
to hold you harmless from any such claims arising as a result of your exercise of your right of set-off.

 

F.
Waiver. Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to
use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not
waive your right to later consider the event a default and to use any remedies if the default continues or occurs again.

 

10.
COLLECTION EXPENSES AND ATTORNEYS’ FEES. On or after the occurrence of an Event of Default, to the extent permitted by
law, I agree to pay all reasonable expenses of collection, enforcement or protection of your rights and remedies under this Agreement
or any other Loan Document. Expenses include (unless prohibited by law) reasonable attorneys’ fees, court costs, and other legal
expenses. These expenses are due and payable immediately. If not paid immediately, these expenses will bear interest from the date
of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Loan. All fees and expenses
will be secured by the Property I have granted to you, if any. In addition, to the extent permitted by the United States Bankruptcy
Code, I agree to pay the reasonable attorneys’ fees incurred by you to protect your rights and interests in connection with any
bankruptcy proceedings initiated by or against me.

 

11.
APPLICABLE LAW. This Agreement is governed by the laws of Ohio, the United States of America, and to the extent required, by
the laws of the jurisdiction where the Property is located, except to the extent such state laws are preempted by federal law.
In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in Ohio, unless otherwise required by law.

 

12.
JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay the Loan is independent of the obligation of any other
person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on the Loan, or any number of us together,
to collect the Loan. Extending the Loan or new obligations under the Loan, will not affect my duty under the Loan and I will still
be obligated to pay the Loan. You may assign all or part of your rights or duties under this Agreement or the Loan Documents without
my consent. If you assign this Agreement, all of my covenants, agreements, representations and warranties contained in this Agreement
or the Loan Documents will benefit your successors and assigns. I may not assign this Agreement or any of my rights under it without
your prior written consent. The duties of the Loan will bind my successors and assigns.

 

13.
AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification
of this Agreement is effective unless made in writing and executed by you and me. This Agreement and the other Loan Documents are
the complete and final expression of the understanding between you and me. If any provision of this Agreement is unenforceable,
then the unenforceable provision will be severed and the remaining provisions will still be enforceable.

 

14.
INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings
are for convenience only and are not to be used to interpret or define the terms of this Agreement.

 

15.
NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering
it or mailing it by first class mail to the appropriate party’s address listed in the DATE AND PARTIES section, or to any other
address designated in writing. Notice to one Borrower will be deemed to be notice to all Borrowers. I will inform you in writing
of any change in my name, address or other application information. I will provide you any correct and complete financial statements
or other information you request. I agree to sign, deliver, and file any additional documents or certifications that you may consider
necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time
is of the essence.

 

16.
WAIVER OF JURY TRIAL. All of the parties to this Agreement knowingly and intentionally, irrevocably and unconditionally, waive
any and all right to a trial by jury in any litigation arising out of or concerning this Agreement or any other Loan Document
or related obligation. All of these parties acknowledge that this section has either been brought to the attention of each party’s
legal counsel or that each party had the opportunity to do so.

 

CONFESSION
OF JUDGMENT. If I default, I authorize any attorney to appear in a court of record and confess judgment against me in favor of
you. The confession of judgment may be without process and for any amount due on the Loan including collection costs and reasonable
attorneys’ fees. This is in addition to other remedies.

 

17.SIGNATURES.
By signing, I agree to the terms contained in this Agreement. I also acknowledge receipt of a copy of this Agreement.

 

	Axion Recycled Plastics Incorporated	 	 
	Ohio
    Commercial Loan Agreement	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 4

 

 

    	 

    	 

    

 

WARNING:
BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN
AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU
MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT, OR ANY
OTHER CAUSE.

 

	BORROWER:	 	 
	 	 	 
	Axion Recycled Plastics Incorporated	 	 
	 	 	 
	 	 	By	/s/ Steven L. Silverman	 	Date	11/15/2013	 
	 	 	Steven L. Silverman, CEO	 	 
	 	 	 	 
	LENDER:	 	 
	 	 	 
	The Community Bank	 	 
	 	 	 
	 	By	/s/ Chris Olney	Date	11/15/2013	 
	 	Chris Olney, Chief Credit Officer	 	 	 

 

	Axion Recycled Plastics Incorporated	 	 
	Ohio
    Commercial Loan Agreement	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 5

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