Document:

Prepared by R.R. Donnelley Financial -- Unconditional Guaranty

 
Exhibit 10.5 
  
	 U.S. Small Business Administration
  
 UNCONDITIONAL  GUARANTEE
 
	

	 SBA Loan #
 	  	 PLP-371-663-4006
 
	 SBA Loan Name
 	  	 NuTECH DIGITAL INC.
 
	 Guarantor
 	  	 Lee Kasper
 
	 Borrower
 	  	 Nutech Digital Inc.; and NuTECH ENTERTAINMENT
 
	 Lender
 	  	 IMPERIAL BANK
 
	 Date
 	  	 July 12, 2000
 
	 Note Amount
 	  	 $900,000,00
 

 
   

	1.
	 
	GUARANTEE: 
 

  

	  
	 
	Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Guarantee remains in effect until the Note is paid in full.
Guarantor must pay all amounts due under the Note when Lender makes written demand upon Guarantor. Lender is not required to seek payment from any other source before demanding payment from Guarantor. 
 

  

	2.
	 
	NOTE: 
 

  

	  
	 
	The “Note” is the promissory note dated July 12, 2000 in the principal amount of Nine Hundred Thousand & 00/100 Dollars, from Borrower to Lender.
It includes any assumption, renewal, substitution, or replacement of the Note, and multiple notes under a line of credit. 
 

  

	3.
	 
	DEFINITIONS: 
 

  

	  
	 
	“Collateral” means any property taken as security for payment of the Note or for any guarantee of the Note. 
 

 

	  
	 
	“Loan” means the loan evidenced by the Note. 
 

  

	  
	 
	“Loan Documents” means the documents related to the Loan signed by Borrower, Guarantor or any other guarantor, or anyone who pledges Collateral.

 

  

	  
	 
	“SBA” means the Small Business Administration, an Agency of the United States of America. 
 

  

	4.
	 
	LENDER’S GENERAL POWERS: 
 

  

	  
	 
	Lender may take any of the following actions at any time, without notice, without Guarantor’s consent, and without making demand upon Guarantor:

 

  

	  
	 
	A. Modify the terms of the Note or any other loan Document except to increase the amounts due under the Note; 
 

  

	  
	 
	B. Refrain from taking any action on the Note, the Collateral, or any guarantee; 
 

  

	  
	 
	C. Release any Borrower or any guarantor of the Note; 
 

  

	  
	 
	D. Compromise or settle with the Borrower or any guarantor of the Note; 
 

  

	  
	 
	E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; 
 

  
 SBA Form 148 (10/98} Previous editions obsolete 

 
	  	    	 SBA GUARANTEE
 	    	  
	  	    	 (Continued)
 	    	 Page 2
 

 
  

	  
	 
	F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or without advertisement; 
 

 

	  
	 
	G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; and 
 

  

	  
	 
	H. Exercise any rights it has, including those in the Note and other Loan Documents. 
 

  

These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender. 
  

	5.
	 
	FEDERAL LAW: 
 

  

	  
	 
	When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, including SBA regulations. Lender or SBA may use state or
local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this
Guarantee, Guarantor may not claim or assert any local or state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 
 

   

	6.
	 
	RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: 
 

  

	  
	 
	To the extent permitted by jaw, 
 

  
 A. Guarantor waives all rights to: 
  

	 	1)
	 
	Require presentment, protest, or demand upon Borrower; 
 

	 	2)
	 
	Redeem any Collateral before or after Lender disposes of it; 
 

	 	3)
	 
	Have any disposition of Collateral advertised; and 
 

	 	4)
	 
	Require a valuation of Collateral before or after Lender disposes of it. 
 

  
 B. Guarantor waives any notice of: 
  

	 	1)
	 
	Any default under the Note; 
 

	 	2)
	 
	Presentment, dishonor, protest, or demand; 
 

	 	3)
	 
	Execution of the Note; 
 

	 	4)
	 
	Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, acceleration, intent to accelerate, assignment, collection
activity, and incurring enforcement expenses; 
 

	 	5)
	 
	Any change in the financial condition or business operations of Borrower or any guarantor; 
 

	 	6)
	 
	Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Note; and 
 

	 	7)
	 
	The time or place of any sale or other disposition of Collateral. 
 

  
 C. Guarantor waives defenses based upon any claim that: 
  

	 	1)
	 
	Lender failed to obtain any guarantee; 
 

	 	2)
	 
	Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken as Collateral; 
 

	 	3)
	 
	Lender or others improperly valued or inspected the Collateral; 
 

	 	4)
	 
	The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; 
 

	 	5)
	 
	Lender impaired the Collateral; 
 

	 	6)
	 
	Lender did not dispose of any of the Collateral; 
 

	 	7)
	 
	Lender did not conduct a commercially reasonable sale; 
 

	 	8)
	 
	Lender did not obtain the fair market value of the Collateral; 
 

	 	9)
	 
	Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor of the Note; 
 

	 	10)
	 
	The financial condition of Borrower or any guarantor was overstated or has adversely changed; 
 

	 	11)
	 
	Lender made errors or omissions in Loan Documents or administration of the Loan; 
 

	 	12)
	 
	Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before demanding payment from Guarantor: 
 

	 	13)
	 
	Lender impaired Guarantor’s suretyship rights; 
 

	 	14)
	 
	Lender modified the Note terms, other than to increase amounts due under the Note. If Lender modifies the Note to increase the amounts due under the Note
without Guarantor’s consent, Guarantor will not be liable for the increased amounts and related interest and expenses, but remains liable for all other amounts. 
 

	 	15)
	 
	Borrower has avoided liability on the Note; or 
 

	 	16)
	 
	Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 
 

  
 SBA Form 148 (10/98} Previous editions obsolete 

 
	  	    	 SBA GUARANTEE
 	    	  
	  	    	 (Continued)
 	    	 Page 3
 

 

	7.
	 
	DUTIES AS TO COLLATERAL: 
 

  

	  
	 
	Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral. 

  

	8.
	 
	SUCCESSORS AND ASSIGNS: 
 

  

	  
	 
	Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and assigns. 
 

  

	9.
	 
	GENERAL PROVISIONS: 
 

  

	A.
	 
	ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this Guarantee, including, but not limited to, attorney’s fees and
costs. 
 

  

	B.
	 
	SBA NOT A CO-GUARANTOR. Guarantor’s liability will continue even if SBA pays Lender. SBA is not a co-guarantor with Guarantor. Guarantor has no right of
contribution from SBA. 
 

  

	C.
	 
	SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note of the Collateral until the Note is paid in full. 
 

 

	D.
	 
	JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly and severally liable. 
 

 

	E.
	 
	DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or
maintain Lender’s liens on Collateral. 
 

  

	F.
	 
	FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. 
 

  

	G.
	 
	LENDER’S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or
forgo enforcing any of its rights without losing or impairing any of them. 
 

  

	H.
	 
	ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the written terms of the Note or this Guarantee, or to raise a
defense to this Guarantee. 
 

  

	I.
	 
	SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain in effect. 
 

 

	J.
	 
	CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by Lender as to the Loan. 
 

  

	10.
	 
	STATE-SPECIFIC PROVISIONS: 
 

  
 Guarantor waives its rights of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become available to the guarantor by reason of California Civil Code Sections 2787 to
2855, inclusive. 
  
 Guarantor waives all rights and defenses that the guarantor may have because the debtor’s debt is secured by real
property. This means, among other things: 
  

	(1)
	 
	The creditor may collect from the guarantor without first foreclosing on the real or personal property collateral pledged by the debtor . 

	(2)
	 
	If the creditor forecloses on any real property collateral pledged by the debtor: 
 

	 	(A)
	 
	The amount of the debt may be reduced by only the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the
sale price. 
 

	 	(B)
	 
	The creditor may collect from the guarantor even if the creditor, by foreclosing on the real property collateral, has destroyed any right the guarantor may have
to collect from the debtor . 
 

  
 This is an unconditional and irrevocable waiver of any rights and defenses the guarantor
may have because the debtor’s debt is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure. 

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

  
 SBA Form 148 (10/98} Previous editions obsolete 

  
 SBA GUARANTEE 
 
	 (Continued)
 	  	 Page 4
 
	
	
	

 
  
 11.    GUARANTOR ACKNOWLEDGEMENT OF TERMS: 

 
 Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and this Guarantee.
including all waivers. 
  
 12.    GUARANTOR NAME(S) AND SIGNATURE(S): 
  
 By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee. 
  
 GUARANTOR: 
  
  
 
	 
	 X
 	 	 /s/    Lee Kasper        
 

	  	 	 Lee Kasper, Individually
 

 
 

 4Prepared by R.R. Donnelley Financial -- Employees Subject to Employment Agreements

 EXHIBIT 10.6A 
  
 EMPLOYEES SUBJECT TO EMPLOYMENT AGREEMENTS 
  
 The Company has entered into
employment agreements with certain executive officers. These agreements are identical except for the date of execution, the name and title of the particular officer involved, and that officer’s minimum base salary. In July 1997, the Company
entered into employment agreements with Michael Mack, Chief Executive Officer and President, David Qualls, Chief Financial Officer and Secretary, and Gregory Keller, Vice President of Operations. On November 17, 1998 the Company entered into an
employment agreement with Kenneth Keane, Vice President of Human Resources. On July 22, 2002, the Company entered into an employment agreement with Walter Carucci, Vice President of Development and Construction. Under the respective employment
agreements, the minimum base annual salary for Mr. Mack is $250,000, for Mr. Qualls is $170,000, for Mr. Carucci is $160,000, for Mr. Keller is $150,000 and for Mr. Keane is $120,000.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]