Document:

Exhibit 10.18

 

 

PROMISSORY
NOTE 

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	$ 1,000,000.00	03-10-2011	03-01-2013	7100839	CLS 07 / 240	600714	765	/s/
	References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item. Any item above containing “* * *” has been omitted due to text length limitations.

 

	Borrower:             	
        BISCO INDUSTRIES, INC.

        1500 N. LAKEVIEW AVE.

        ANAHEIM, CA 92807
	Lender:	
        COMMUNITY BANK

        ANAHEIM BRANCH

        1750 S. STATE COLLEGE BLVD.

        ANAHEIM, CA 92806

        (800) 788-9999

	 	 	 	 

 

	Principal Amount: $1,000,000.00	Date of Note: March 10, 2011

 

PROMISE TO PAY. BISCO INDUSTRIES, INC. (“Borrower”)
promises to pay to COMMUNITY BANK (“Lender”), or order, in lawful money of the United States of America, the principal
amount of One Million & 00/100 Dollars ($1,000,000.00), together with interest on the unpaid principal balance from March 10,
2011, until paid in full. 

 

PAYMENT. Borrower will pay this loan in full immediately
upon Lender’s demand. If no demand is made, subject to any payment changes resulting from changes in the Index, Borrower
will pay this loan in 24 payments of $43,083.05 each payment. Borrower’s first payment is due April 1, 2011, and all
subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on March 1,
2013, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise
agreed or required by applicable law, payments will be applied to any accrued unpaid interest; then to principal; then to late
charges; then to any unpaid collection costs. Notwithstanding anything to the contrary contained in the immediately preceding sentence,
all payments will be applied as invoiced, so any payment received prior to the due date will result in an invoice the succeeding
month that is calculated to include a partial interest credit. Conversely, if a payment is received after the due date, the succeeding
month’s invoice will reflect a higher accrued interest amount than would otherwise be due if the payment had been made and
applied on the due date. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate
in writing. 

 

VARIABLE INTEREST RATE. The interest rate on this Note
is subject to change from time to time based on changes in an index which is the rate from time to time established by Lender as
its Reference Rate and used to determine the actual interest rates charged on commercial loans, with the understanding that such
Reference Rate is only one of the base rates that may be used by Lender to determine the actual interest rate charged on a commercial
loan and may not be the lowest of the base rates so used (the “Index”). Lender will tell Borrower the current Index
rate upon Borrower’s request. The interest rate change will not occur more often than each day. Borrower understands that
Lender may make loans based on other rates as well. The Index currently is 3.250% per annum. Interest on the unpaid
principal balance of this Note will be calculated as described in the “INTEREST CALCULATION METHOD” paragraph using
a rate equal to the Index, resulting in an initial rate of 3.250%. NOTICE: Under no circumstances will the interest rate on this
Note be more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option,
may do one or more of the following: (A) increase Borrower’s payments to ensure Borrower’s loan will pay off by
its original final maturity date, (B) increase Borrower’s payments to cover accruing interest, (C) increase the
number of Borrower’s payments, and (D) continue Borrower’s payments at the same amount and increase Borrower’s
final payment.

 

INTEREST CALCULATION METHOD. Interest on this Note is computed
on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this
Note is computed using this method. 

 

PREPAYMENT; MINIMUM INTEREST CHARGE. In any event, even
upon full prepayment of this Note, Borrower understands that Lender is entitled to a minimum interest charge of $500.00.
Other than Borrower’s obligation to pay any minimum interest charge, Borrower may pay without penalty all or a portion of
the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s
obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due
and may result in Borrower’s making fewer payments. Borrower agrees not to send Lender payments marked “paid in full”,
“without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without losing any
of Lender’s rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written
communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes
“payment in full” of the amount owed or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: COMMUNITY BANK, Loan Support Group, Post Office Box 54477 Los Angeles, CA
90054.

 

LATE CHARGE. If a payment is 10 days or more late, Borrower
will be charged 5.000% of the unpaid portion of the regularly scheduled payment or $25.00, whichever is greater.

 

INTEREST AFTER DEFAULT. Upon default, the interest rate
on this Note shall, if permitted under applicable law, immediately increase by adding an additional 5.000 percentage point margin
(“Default Rate Margin”). The Default Rate Margin shall also apply to each succeeding interest rate change that would
have applied had there been no default.

 

DEFAULT. Each of the following shall constitute an event
of default (“Event of Default”) under this Note:

 

Payment Default. Borrower fails to make any
payment when due under this Note.

 

Other Defaults. Borrower fails to comply
with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents
or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and
Borrower.

 

Default in Favor of Third Parties. Borrower
or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement,
in favor of any other creditor or person that may materially affect any of Borrower’s property or Borrower’s ability
to repay this Note or perform Borrower’s obligations under this Note or any of the related documents.

 

False Statements. Any warranty, representation
or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Note or the related documents is
false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any
time thereafter.

 

    	 

    	 

    

  

Insolvency. The dissolution or termination
of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower’s
property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under
any bankruptcy or insolvency laws by or against Borrower.

 

Creditor or Forfeiture Proceedings. Commencement
of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor
of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower’s
accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute
by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if
Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve
or bond for the dispute.

 

Events Affecting Guarantor. Any of the preceding
events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor,
endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under,
any guaranty of the indebtedness evidenced by this Note.

 

Change In Ownership. Any change in ownership
of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse Change. A material adverse change
occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

 

Insecurity. Lender in good faith believes
itself insecure.

 

Cure Provisions. If any default, other than
a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within
the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written notice to Borrower demanding cure
of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days,
immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient to cure the default and thereafter
continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

 

LENDER’S RIGHTS. Upon default, Lender may declare
the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay
that amount.

 

ATTORNEYS’ FEES; EXPENSES. Lender may hire or pay
someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to
any limits under applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether or not there is
a lawsuit, including attorneys’ fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), and appeals. Borrower also will pay any court costs, in addition to all other sums provided by law.

 

JURY WAIVER. To the extent permitted by applicable law, Lender
and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower
against the other. 

 

GOVERNING LAW. This Note will be governed by federal law
applicable to Lender and, to the extent not preempted by federal law, the laws of the State of California without regard to its
conflicts of law provisions. This Note has been accepted by Lender in the State of California. 

 

DISHONORED ITEM FEE. Borrower will pay a fee to Lender
of $15.00 if Borrower makes a payment on Borrower’s loan and the check or preauthorized charge with which Borrower pays is
later dishonored.

 

RIGHT OF SETOFF. To the extent permitted by applicable
law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking, savings, or some other account).
This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However,
this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such
accounts.

 

COLLATERAL. Borrower acknowledges this Note is secured
by Collateral as described in two (2) Commercial Security Agreements each dated March 23, 2010.

 

ARBITRATION. Borrower and Lender agree that all disputes,
claims and controversies between them whether individual, joint, or class in nature, arising from this Note or otherwise, including
without limitation contract and tort disputes, shall be arbitrated pursuant to the Rules of the American Arbitration Association
in effect at the time the claim is filed, upon request of either party. No act to take or dispose of any collateral securing this
Note shall constitute a waiver of this arbitration agreement or be prohibited by this arbitration agreement. This includes, without
limitation, obtaining injunctive relief or a temporary restraining order; invoking a power of sale under any deed of trust or mortgage;
obtaining a writ of attachment or imposition of a receiver; or exercising any rights relating to personal property, including taking
or disposing of such property with or without judicial process pursuant to Article 9 of the Uniform Commercial Code. Any disputes,
claims, or controversies concerning the lawfulness or reasonableness of any act, or exercise of any right, concerning any collateral
securing this Note, including any claim to rescind, reform, or otherwise modify any agreement relating to the collateral securing
this Note, shall also be arbitrated, provided however that no arbitrator shall have the right or the power to enjoin or restrain
any act of any party. Borrower and Lender agree that in the event of an action for judicial foreclosure pursuant to California
Code of Civil Procedure Section 726, or any similar provision in any other state, the commencement of such an action will
not constitute a waiver of the right to arbitrate and the court shall refer to arbitration as much of such action, including counterclaims,
as lawfully may be referred to arbitration. Judgment upon any award rendered by any arbitrator may be entered in any court having
jurisdiction. Nothing in this Note shall preclude any party from seeking equitable relief from a court of competent jurisdiction.
The statute of limitations, estoppel, waiver, laches, and similar doctrines which would otherwise be applicable in an action brought
by a party shall be applicable in any arbitration proceeding, and the commencement of an arbitration proceeding shall be deemed
the commencement of an action for these purposes. The Federal Arbitration Act shall apply to the construction, interpretation,
and enforcement of this arbitration provision. 

 

PRIMARY BANKING RELATIONSHIP. Borrower and Lender acknowledge
and agree that Borrower now maintains or will maintain its primary banking relationship, including its primary deposit account
relationship (“Primary Banking Relationship”), with Lender. In the event Borrower ceases to maintain its Primary Banking
Relationship with Lender (as determined by Lender in its sole discretion), the interest rate margin set forth in this Note shall
be increased by one percent (1.00%) from zero percent (0.00%) to one percent (1.00%), at Lender’s option, following
a five (5) day written notice to the Borrower.

 

SUCCESSOR INTERESTS. The terms of this Note shall be
binding upon Borrower, and upon Borrower’s heirs, personal representatives, successors and assigns, and shall inure to the
benefit of Lender and its successors and assigns.

 

NOTIFY US OF INACCURATE INFORMATION
WE REPORT TO CONSUMER REPORTING AGENCIES. Borrower may notify Lender if Lender reports any inaccurate information about Borrower’s
account(s) to a consumer reporting agency. Borrower’s written notice describing the specific inaccuracy(ies) should be sent
to Lender at the following address: COMMUNITY BANK Loan Support Group P.O. Box 54477 Los Angeles, CA 90054.

 

    	 

    	 

    

  

GENERAL PROVISIONS. This Note is payable on demand. The
inclusion of specific default provisions or rights of Lender shall not preclude Lender’s right to declare payment of this
Note on its demand. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay
or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive any applicable statute of limitations, presentment, demand
for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing,
no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All
such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor
or collateral; or impair, fail to realize upon or perfect Lender’s security interest in the collateral; and take any other
action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify
this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under
this Note are joint and several.

 

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD
ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. 

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE. 

 

	BORROWER:
	 
	BISCO INDUSTRIES, INC.
	 	 
	By:	
        /S/ GLEN F. CEILEY 
	 
	 	
        GLEN F. CEILEY, Chairman and CEO of BISCO

        INDUSTRIES, INC.

 

	 
	LASER PRO Lending, Ver. 5.60.00.005 Copr. Harland Financial Solutions, Inc. 1997, 2012. All Rights Reserved. - CA G:\CF150\CFI\LPL\D20C.FC TR-6558 PR-38Exhibit 10.19

  

COMMERCIAL
GUARANTY

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	 	 	 	 	CLS 07 / 240	 	644	/s/
	
        References in the shaded area are for Lender’s
        use only and do not limit the applicability of this document to any particular loan or item.

        Any item above containing “***”
        has been omitted due to text length limitations.

 

	Borrower:	BISCO INDUSTRIES, INC.	 	Lender:	COMMUNITY BANK
	 	1500 NORTH LAKEVIEW AVENUE	 	 	ANAHEIM BRANCH
	 	Anaheim, Ca 92807	 	 	1750 S. STATE COLLEGE BLVD.
	 	 	 	 	Anaheim, ca 92806
	Guarantor:	GLEN F. CEILEY	 	 	(800) 788-9999
	 	304 EVENING STAR LANE	 	 	 
	 	NEWPORT BEACH, ca 92660	 	 	 

 

 

 

 

AMOUNT OF
GUARANTY. The amount of this Guaranty is Unlimited.

 

CONTINUING UNLIMITED GUARANTY. For good and valuable consideration,
GLEN F. CEILEY (“Guarantor”) absolutely and unconditionally guarantees and promises to pay to COMMUNITY BANK (“Lender”)
or its order, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of BISCO INDUSTRIES,
INC. (“Borrower”) to Lender on the terms and conditions set forth In this Guaranty. Under this Guaranty, the liability
of Guarantor is unlimited and the obligations of Guarantor are continuing.

 

INDEBTEDNESS
GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower’s indebtedness
to Lender and is used in the most comprehensive sense and means and includes any and all of Borrower’s liabilities, obligations
and debts to Lender, now existing or hereinafter incurred or created, including, without limitation, all loans, advances, interest,
costs, debts, overdraft indebtedness, credit card indebtedness, lease obligations, other obligations, and liabilities of Borrower,
or any of them, and any present or future judgments against Borrower, or any of them; and whether any such Indebtedness is voluntarily
or involuntarily incurred, due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined; whether
Borrower may be liable individually or jointly with others, or primarily or secondarily, or as guarantor or surety; whether recovery
on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever; and whether the Indebtedness
arises from transactions which may be voidable on account of infancy, insanity, ultra vires, or otherwise.

 

DURATION
of GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any
acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness
incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and
satisfied and all of Guarantor’s other obligations under this Guaranty shall have been performed in full. If Guarantor
elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor’s written notice of revocation must be
mailed to Lender, by certified mail, at Lender’s address listed above or such other place as Lender may designate in
writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by
Lender of Guarantor’s written revocation. For this purpose and without limitation, the term “new
Indebtedness” does not include Indebtedness which at the time of notice of revocation is contingent, unliquidated,
undetermined or not due and which later becomes absolute, liquidated, determined or due. This Guaranty will continue to bind
Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor’s written
notice of revocation, including any extensions, renewals, substitutions or modifications of the Indebtedness. All renewals,
extensions, substitutions, and modifications of the Indebtedness granted after Guarantor’s revocation, are contemplated
under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind
Guarantor’s estate as to Indebtedness created both before and after Guarantor’s death or incapacity, regardless
of Lender’s actual notice of Guarantor’s death. Subject to the foregoing, Guarantor’s executor or
administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have
terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the
Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or
more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. Guarantor’s obligations
under this Guaranty shall be in addition to any of Guarantor’s obligations, or any of them, under any other guaranties
of Borrower’s Indebtedness or any other person heretofore or hereafter given to Lender unless such other guaranties are
modified or revoked in writing; and this Guarantor shall not, unless provided in this Guaranty, affect, invalidate, or
supersede any such other guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness
covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness,
even to zero dollars ($0.00), prior to Guarantor’s written revocation of this Guaranty shall not constitute a
termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor’s heirs, successors and assigns so
long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time
be zero dollars ($0.00).

 

OBLIGATIONS
of MARRIED PERSONS. Any married person who signs this Guaranty hereby expressly agrees that recourse under this Guaranty
may be had against both his or her separate property and community property.

 

GUARANTOR’S
AUTHORIZATION to LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice
or demand and without lessening Guarantor’s liability under this Guaranty, from time to time: (A) prior to revocation
as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to
Borrower, or otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise
change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases
and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original
loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate,
fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release,
substitute, agree not to sue, or deal with any one or more of Borrower’s sureties, endorsers, or other guarantors on any
terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made
on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any
nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may
determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or
transfer this Guaranty in whole or in part.

 

GUARANTOR’S
REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements
of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is
executed at Borrower’s request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter
into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other
instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to
Guarantor; (E) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate,
transfer, or otherwise dispose of all or substantially all of Guarantor’s assets, or any interest therein; (F) upon Lender’s
request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial
information which currently has been, and all future financial information which will be provided to Lender is and will be true
and correct in all material respects and fairly present Guarantor’s financial condition as of the dates the financial information
is provided; (G) no material adverse change has occurred in Guarantor’s financial condition since the date of the most recent
financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor’s financial
condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes)
against Guarantor is pending or threatened; (I) Lender has made no representation to Guarantor as to the creditworthiness of Borrower;
and (J) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower’s
financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which
might in any way affect Guarantor’s risks under this Guaranty, and Guarantor further agrees that, absent a request for information,
Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship
with Borrower.

 

GUARANTOR’S WAIVERS. Except
as prohibited by applicable law, Guarantor waives any right to require Lender to (A) make any presentment, protest, demand, or
notice of any kind, including notice of change of any terms of repayment of the Indebtedness, default by Borrower or any other
guarantor or surety, any action or nonaction taken by Borrower, Lender, or any other guarantor or surety of Borrower, or the creation
of new or additional Indebtedness; (B) proceed against any person, including Borrower, before proceeding against Guarantor; (C)
proceed against any collateral for the Indebtedness, including Borrower’s collateral, before proceeding against Guarantor;
(D) apply any payments or proceeds received against the Indebtedness in any order; (E) give notice of the terms, time, and place
of any sale of the collateral pursuant to the Uniform Commercial Code or any other law governing such sale; (F) disclose any information
about the Indebtedness, the Borrower, the collateral, or any other guarantor or surety, or about any action or nonaction of Lender;
or (G) pursue any remedy or course of action in Lender’s power whatsoever.

 

Guarantor also waives any and all rights
or defenses arising by reason of (H) any disability or other defense of Borrower, any other guarantor or surety or any other person;
(I) the cessation from any cause whatsoever, other than payment in full, of the Indebtedness; (J) the application of proceeds
of the Indebtedness by Borrower for purposes other than the purposes understood and intended by Guarantor and Lender; (K) any
act of omission or commission by Lender which directly or indirectly results in or contributes to the discharge of Borrower or
any other guarantor or surety, or the Indebtedness, or the loss or release of any collateral by operation of law or otherwise;
(L) any statute of limitations in any action under this Guaranty or on the Indebtedness; or (m)
any modification or change in terms of the Indebtedness, whatsoever, including without limitation, the renewal, extension,
acceleration, or other change in the time payment of the Indebtedness is due and any change in the interest rate, and including
any such modification or change in terms after revocation of this Guaranty on Indebtedness incurred prior to such revocation.

 

    	 

    	 

    

 

COMMERCIAL
GUARANTY

	Loan No: 155354101	(Continued)	Page 2

 

 

 

 

Guarantor waives all rights and any defenses arising out of
an election of remedies by Lender even though that the election of remedies, such as a non-judicial foreclosure with respect to
security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against Borrower
by operation of Section 580d of the California Code of Civil Procedure or otherwise.

 

Guarantor waives all rights and defenses
that Guarantor may have because Borrower’s obligation is secured by real property. This means among other things: (1) Lender
may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrower. (2) If Lender
forecloses on any real property collateral pledged by Borrower: (a) the amount of Borrower’s obligation may be reduced only
by the price for which the collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price.
(b) Lender may collect from Guarantor even if Lender, by forclosing on the real property collateral, has destroyed any right Guarantor
may have to collect from Borrower. This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have
because Borrower’s obligation is secured by real property. These rights and defenses include, but are not limited to, any
rights and defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure.

 

Guarantor understands and agrees that the
foregoing waivers are unconditional and irrevocable waivers of substantive rights and defenses to which Guarantor might otherwise
be entitled under state and federal law. Guarantor acknowledges that Guarantor has provided these waivers of rights and defenses
with the intention that they be fully relied upon by Lender. Guarantor further understands and agrees that this Guaranty is a separate
and independent contract between Guarantor and Lender, given for full and ample consideration, and is enforceable on its own terms.
Until all Indebtedness is paid in full, Guarantor waives any right to enforce any remedy Guarantor may have against the Borrower
or any other guarantor, surety, or other person, and further, Guarantor waives any right to participate in any collateral for the
Indebtedness now or hereafter held by Lender.

 

In addition to the waivers set forth herein, if now or hereafter
Borrower is or shall become insolvent and the Indebtedness shall not at all times until paid be fully secured by collateral pledged
by Borrower, Guarantor hereby forever waives and gives up in favor of Lender and Borrower, and Lender’s and Borrower’s
respective successors, any claim or right to payment Guarantor may now have or hereafter have or acquire against Borrower, by subrogation
or otherwise, so that at no time shall Guarantor be or become a “creditor” of Borrower within the meaning of 11 U.S.C.
section 547(b), or any successor provision of the Federal bankruptcy laws.

 

GUARANTOR’S
UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made
with Guarantor’s full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable
and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,
such waiver shall be effective only to the extent permitted by law or public policy.

 

SUBORDINATION
OF BORROWER’S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing
or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether
or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon
any account whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent
liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation,
or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender
and shall be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims
which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower; provided however, that
such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness.
If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor
shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and
Lender is hereby authorized, in the name of Guarantor, from time to time to execute and file financing statements and continuation
statements and to execute such other documents and to take such other actions as Lender deems necessary or appropriate to perfect,
preserve and enforce its rights under this Guaranty.

 

MISCELLANEOUS PROVISIONS. The following miscellaneous
provisions are a part of this Guaranty:

 

Amendments. This Guaranty,
together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth
in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party
or parties sought to be charged or bound by the alteration or amendment.

 

Arbitration. Borrower and
Guarantor and Lender agree that all disputes, claims and controversies between them whether individual, joint, or class in nature,
arising from this Guaranty or otherwise, including without limitation contract and tort disputes, shall be arbitrated pursuant
to the Rules of the American Arbitration Association in effect at the time the claim is filed, upon request of either party. No
act to take or dispose of any Collateral shall constitute a waiver of this arbitration agreement or be prohibited by this arbitration
agreement. This includes, without limitation, obtaining injunctive relief or a temporary restraining order; invoking a power of
sale under any deed of trust or mortgage; obtaining a writ of attachment or imposition of a receiver; or exercising any rights
relating to personal property, including taking or disposing of such property with or without judicial process pursuant to Article
9 of the Uniform Commercial Code. Any disputes, claims, or controversies concerning the lawfulness or reasonableness of any act,
or exercise of any right, concerning any Collateral, including any claim to rescind, reform, or otherwise modify any agreement
relating to the Collateral, shall also be arbitrated, provided however that no arbitrator shall have the right or the power to
enjoin or restrain any act of any party. Borrower and Guarantor and Lender agree that in the event of an action for judicial foreclosure
pursuant to California Code of Civil Procedure Section 726, or any similar provision in any other state, the commencement of such
an action will not constitute a waiver of the right to arbitrate and the court shall refer to arbitration as much of such action,
including counterclaims, as lawfully may be referred to arbitration. Judgment upon any award rendered by any arbitrator may be
entered in any court having jurisdiction. Nothing in this Guaranty shall preclude any party from seeking equitable relief from
a court of competent jurisdiction. The statute of limitations, estoppel, waiver, laches, and similar doctrines which would otherwise
be applicable in an action brought by a party shall be applicable in any arbitration proceeding, and the commencement of an arbitration
proceeding shall be deemed the commencement of an action for these purposes. The Federal Arbitration Act shall apply to the construction,
interpretation, and enforcement of this arbitration provision.

 

Attorneys’ Fees; Expenses.
Guarantor agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s attorneys’ fees and
Lender’s legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else
to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s
attorneys’ fees and legal expenses whether or not there is a lawsuit, including attorneys’ fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the
court.

 

Caption Headings. Caption
headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this
Guaranty.

 

Governing Law. This Guaranty
will be governed by, construed and enforced in accordance with federal law and the laws of the State of California. This Guaranty
has been accepted by Lender in the State of California.

 

Integration. Guarantor
further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be
advised by Guarantor’s attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor’s intentions and
parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless
from all losses, claims, damages, and costs (including Lender’s attorneys’ fees) suffered or incurred by Lender as
a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph.

 

Interpretation.  In all cases where there is
more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in
the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when
this Guaranty is executed by more than one Guarantor, the words “Borrower” and “Guarantor” respectively
shall mean all and any one or more of them. The words “Guarantor,” “Borrower,” and “Lender”
include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is
not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced.
Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to
be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies,
or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors,
partners, managers, or other agents acting or purporting to act on their behalf, and any Loan indebtedness made or created in reliance
upon the professed exercise of such powers shall be guaranteed under this Guaranty.

 

Notices. Any notice required
to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective
when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally
recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered
mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor
shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled “DURATION
OF GUARANTY.” Any party may change its address for notices under this Guaranty by giving formal written notice to the other
parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes, Guarantor agrees
to keep Lender informed at all times of Guarantor’s current address. Unless otherwise provided or required by law, if there
is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors.

 

    	 

    	 

    

 

COMMERCIAL
GUARANTY

	Loan No: 155354101	(Continued)	Page 3

  

 

 

 

No Waiver by Lender. Lender shall not be deemed
to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission
on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of
a provision of this Guaranty shall not prejudice or constitute a waiver of Lender’s right otherwise to demand strict compliance
with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender
and Guarantor, shall constitute a waiver of any of Lender’s rights or of any of Guarantor’s obligations as to any future
transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance
shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may
be granted or withheld in the sole discretion of Lender.

 

Successors and Assigns. Subject to any limitations
stated in this Guaranty on transfer of Guarantor’s interest, this Guaranty shall be binding upon and inure to the benefit
of the parties, their successors and assigns.

 

Waive Jury. Lender and Guarantor hereby waive
the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

 

LENDERS RIGHT OF SETOFF. In addition to all liens upon
the rights of setoff against the moneys, securities or other property of Guarantor given to Lender by law, Lender shall have, with
respect to Guarantor’s obligations to Lender under this Guaranty and to the extent permitted by law, a contractural security
interest in and a right of setoff against, and Guarantor hereby assigns, conveys, delivers, pledges, and transfers to Lender all
of Guarantor’s right, title and interest in and to, all deposits, moneys, securities and other property of Guarantor now
or hereafter in the possession of or on deposit with Lender, whether held in a general or special account or deposit, whether held
jointly with someone else, or whether held for safekeeping or otherwise, excluding however all IRA, Keogh, and trust accounts.
Every such security interest and right of setoff may be exercised without demand upon a notice to Guarantor. No security interest
or right of setoff shall be deemed to have been waived by any act or conduct on the part of Lender or by any neglect to exercise
such right of setoff or to enforce such security interest or by any delay in so doing. Every right of setoff and security interest
shall continue in full force and effect until such right of setoff or security interest is specifically waived or released by an
instrument in writing executed by Lender.

 

NATURE OF GUARANTY. Guarantor’s liability under
this Guaranty shall be open and continuous for so long as this Guaranty remains in force. Guarantor intends to guarantee at all
times the performance and prompt payment when due, whether at maturity or earlier by reason of acceleration or otherwise, of all
indebtedness. Accordingly, no payments made upon the indebtedness will discharge or diminish the continuing liability of Guarantor
in connection with any remaining portions of the indebtedness or any of the indebtedness which subsequently arises or is thereafter
incurred or contracted.

 

DEFINITIONS. The following capitalized
words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references
to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall
include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined
in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code:

 

Borrower. The word “Borrower”
means BISCO INDUSTRIES, INC. and includes all co-signers and co-makers signing the Note.

 

Guarantor. The word “Guarantor”
means each and every person or entity signing this Guaranty, including without limitation GLEN F. CEILEY.

 

Guaranty. The word “Guaranty”
means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.

 

Indebtedness. The word “Indebtedness”
means Borrower’s indebtedness to Lender as more particularly described in this Guaranty.

 

Lender. The word “Lender” means
COMMUNITY BANK, its successors and assigns.

 

Note. The word “Note”
means the promissory note dated November 15, 2000, in the original amount of $8,000,000.00 from BISCO INDUSTRIES, INC. to Lender,
together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory
note or agreement.

 

Related Documents. The
words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements
and documents, whether now or hereafter existing, executed in connection with the Indebtedness.

 

EACH
UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITs TERMS. IN ADDITION, EACH GUARANTOR
UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR’S EXECUTION ANd DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE
GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED “DURATION OF GUARANTY”. NO FORMAL
ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED MAY 1, 2004. 

 

	GUARANTOR:	 	 	 	 
		 	WITHNESSD BY	/s/	 
	 	 	 	 	 
	/s/ GLEN F. CEILEY	 	 	 	 
	GLEN F. CEILEY	 	TITLE	V.P.	 

 

 

CERTIFICATE OF ACKNOWLEDGMENT

 

	STATE OF	 	 	)
	 	 	 	) SS
	COUNTY OF 	 	 	)

 

On_________________________, 20______ before me, _____________________________________________________,
personally appeared GLEN F. CEILEY, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.

 

WITNESS my hand and official seal.

 

	Signature 	 	(Seal)

 

 

 

LASER PRO Lending, Ver 5 23 20 002 Copr Harland Financial Solutions, Inc. 1997, 2004. All Rights Reserved
- CA c:\CFI50\CFI\LPL\E20 FC TR-659 PR-UCCSEC

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