Document:

Exhibit 10.8 - Line of Credit Security Agreement

    Exhibit
      10.8

    

    SECURITY
      AGREEMENT

    

    (Equipment/Inventory/Accounts
      Receivable)

    

    This
      Security Agreement (Equipment/Inventory/Accounts Receivable) (the "Agreement"),
      dated June
      8, 2006 for
      reference purposes only, is executed by and between CRESA
      Partners of Orange County, LP, a Delaware limited partnership
(the
      "Borrower"), and First
      Republic Bank (the
      "Lender"), with reference to the following facts:

    

    A. Lender
      and Borrower are entering into an agreement of even date herewith pursuant
      to
      which Bank will provide credit to, or for the benefit of, Borrower (the "Loan").
      The Loan will be evidenced by Borrower's promissory note or notes (collectively,
      the "Note"). This Agreement is being provided in connection with the Loan
      Agreement to secure Borrower's obligations thereunder.

    

    THEREFORE,
      for valuable consideration, the receipt and adequacy of which are acknowledged,
      Borrower and the Lender agree as follows:

    

    1. Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      definitions:

    

    1.1 Account
      Debtors. "Account
      Debtors" means all persons who now are or hereafter become in any way obligated,
      liable, or responsible for any payment of any kind in connection with any or
      all
      of the Accounts.

    

    1.2 Code. "Code"
      means the California Uniform Commercial Code, as amended from time to
      time.

    

    1.3 Collateral.
      "Collateral"
      means all of Borrower's interest in the following types of property, whether
      now
      owned or held or hereafter acquired and wherever located:

    

    (a)  All
      accounts, securities accounts, investment property, securities, contract rights,
      instruments, documents, chattel paper and all other obligations now or hereafter
      owing to Borrower (collectively, the "Accounts"); all right, title and interest
      of Borrower in, and all of Borrower's rights and remedies with respect to,
      all
      goods, the sale or other disposition of which gives rise to any Account,
      including all returned, rejected, rerouted, reclaimed and repossessed goods
      and
      all rights of stoppage in transit, replevin, reclamation, and all rights as
      an
      unpaid vendor; all collections and proceeds of any or all of the foregoing;
      all
      guarantees of, security for, and insurance proceeds attributable to any or
      all
      of the foregoing; all books and records relating to any or all of the foregoing;
      and all equipment containing said books and records. Notwithstanding anything
      to
      the contrary, the term "Accounts" shall not include any commissions or
      receivables owed directly to the individual (non-entity) agents and managers
      who
      are partners or shareholders of Borrower, and who are acting as Guarantors
      on
      the Loan.

    

    (b)  All
      inventory, goods, merchandise, materials, raw materials, goods in process,
      finished goods, advertising, packaging and shipping materials, supplies, and
      all
      other tangible personal property which is held for sale or lease, furnished
      under contracts of service, or consumed in Borrower's business, and all
      replacements, accessions and additions to any or all of the foregoing, and
      all
      of the foregoing which are returned, repossessed, reclaimed or stopped in
      transit (collectively, the "Inventory"), whether or not the Inventory is in
      the

    
      
         

      

      
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    constructive
      or actual possession or custody of Borrower, the Lender, or any third person;
      all negotiable and non-negotiable warehouse receipts and other documents now
      or
      hereafter issued with respect to any or all of the Inventory; all proceeds,
      insurance proceeds and products of any or all of the foregoing, including all
      now owned and hereafter acquired accounts, instruments, documents, and chattel
      paper arising from the sale or other disposition of any or all of the Inventory;
      all books and records pertaining to any or all of the foregoing; and all
      equipment containing said books and records.

    

    (c)  All
      equipment, goods and other tangible personal property (other than Inventory),
      machinery, fixtures, trade fixtures, vehicles, furnishings, furniture, supplies,
      molds, materials, motors, tools, machine tools, motor vehicles, office
      equipment, appliances, apparatus, parts, dyes, jigs, and chattels, together
      with
      all attachments, replacements, substitutions, accessions, additions and
      improvements to any or all of the foregoing (collectively, the "Equipment"),
      whether or not the same is in the constructive or actual possession or custody
      of Borrower, Lender, or any third person; all products, proceeds and insurance
      proceeds of any or all of the foregoing, including all accounts, instruments,
      documents and chattel paper which may arise from the sale or disposition of
      any
      or all of the Equipment; all books and records pertaining to any or all of
      the
      foregoing; and all equipment containing said books and records. 

    

    (d)  All
      deposit accounts, money, cash equivalents, and general intangibles [including,
      but not limited to, tax refunds, choses in action, causes of action, goodwill,
      names, inventions, designs, drawings, plans, specifications, blueprints, trade
      names, trade secrets, trade marks and the goodwill of the business symbolized
      thereby, service marks, compilations, reports, appraisals, studies, customer
      lists, telephone numbers, advertising rights, negatives, prints, brochures,
      pamphlets, computer programs, patents, patent applications, copyrights, security
      and other deposits, prepaid items, refunds, loan commitment fees, royalties,
      registrations, licenses, permits, processes, franchises, rights in all
      litigation presently or hereafter pending for any cause of action (whether
      in
      contract, tort or otherwise) and all judgments now or hereafter arising
      therefrom, all claims of Borrower against Lender, rights to purchase or sell
      real or personal property, rights as a licensor or licensee of any kind,
      purchase orders, and all insurance policies and insurance claims (including
      life
      insurance, key man insurance, credit insurance, liability insurance, property
      insurance, and other insurance), claims under guaranties, and all rights to
      indemnification and all other intangible property of every kind and nature];
      all
      proceeds, insurance proceeds and products of, and additions and accessions
      to,
      any or all of the foregoing; all guarantees of and security for any or all
      of
      the foregoing; all books and records relating to any or all of the foregoing;
      and the equipment containing said books and records. 

    

    1.4Event
      of Default. "Event
      of
      Default" shall have the meaning given to such term in Section 6 of this
      Agreement.

    

    1.5Loan
      Agreement. "Loan
      Agreement" means the loan agreement dated the same date as this agreement
      executed by Borrower in connection with the Loan.

    

    1.6Obligations.
      "Obligations"
      means all debts, obligations, and liabilities of Borrower to the Lender
      currently existing or hereafter made, incurred or created, whether voluntary
      or
      involuntary, and however arising or evidenced, whether direct or acquired by
      the
      Lender by assignment or succession, whether due or not due, absolute or
      continent, liquidated or unliquidated, determined or undetermined, whether
      under
      this Agreement, the Note, any of the other Loan Documents, or otherwise, and
      whether Borrower may be liable individually or jointly, or whether recovery
      upon
      such debt may be or become barred by any statute of limitations or otherwise
      unenforceable, including all attorneys' fees and costs now or hereafter payable
      by Borrower to the Lender under the 

    
      
         

      

      
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    Loan
      Documents or in connection with the collection and enforcement of such debts,
      obligations and liabilities. Notwithstanding anything to the contrary contained
      in this Agreement, this Agreement shall not secure and the term "Obligations
      shall not include any debts that are or may hereafter constitute "consumer
      credit" which is subject to the disclosure requirements of the federal Truth-In
      Lending Act (15 U.S.C. Section 1601, et seq.)
      or
      any
      similar state law in effect from time to time, unless the Lender and Borrower
      shall otherwise agree in a separate written agreement.

    1.7
      Other
      Terms. All
      terms
      with an initial capital letter that are used but not defined in this Agreement
      shall have the respective meanings given to such terms in the Loan Agreement
      and
      in Divisions 8 and 9 of the Code, respectively, as applicable.

    

    2.  Grant
      of Security Interest. To
      secure
      the Obligations, Borrower grants and assigns to the Lender a security interest
      in the Collateral.

    

    3.  Equipment,
      Inventory and Accounts Receivable.

    

    3.1 Sale
      or Transfer of Equipment. Borrower
      shall not exchange, trade, sell, lease, or otherwise dispose of the Equipment
      without the Lender's prior written consent, except for obsolete equipment which
      is sold for fair market value and is immediately replaced with equipment of
      equal or greater value in which the Lender has a perfected first priority
      security interest.

    

    3.2 Condition
      of Equipment. Borrower
      shall at all times maintain the Equipment in good operating condition and
      repair.

    

    3.3 Use
      of Equipment. Borrower
      shall take all reasonable actions to not permit or cause the Equipment to be
      misused, used for any purpose other than that for which the Equipment was
      designed, or utilized in any illegal or negligent manner. Borrower shall use
      the
      Equipment only in the ordinary course of its business as conducted prior to
      the
      date of this Agreement and in a manner consistent with the terms of all
      insurance policies relating to the Equipment.

    

    3.4 Equipment
      Records and Schedules. Without
      limiting the generality of Section 4.5 below, Borrower shall maintain complete
      and accurate books and records regarding the Equipment, including records
      describing the dates of acquisition, acquisition costs, and serial numbers
      of
      the Equipment. Upon the Lender's request, Borrower shall provide the Lender
      with
      complete and accurate schedules containing (a) a description of each item of
      Equipment; (b) the serial number, if any, of each item of Equipment, and (c)
      such other information regarding the Equipment as the Lender may reasonably
      require. Borrower shall notify the Lender in writing within five (5) business
      days of all material pieces of Equipment which Borrower purchases, leases or
      otherwise acquires after the date of this Agreement.

    

    3.5 Certificates
      of Ownership. Upon
      Borrower's execution of this Agreement, Borrower shall deliver to the Lender
      the
      originals of all certificates of title, certificates of ownership, evidences
      of
      ownership, and all other similar documents and instruments (collectively, the
      "Certificates of Ownership") relating to all Equipment in which Borrower now
      has
      an interest. Upon Borrower's acquisition of an interest in any item of Equipment
      following the date of this Agreement, Borrower shall deliver within five (5)
      business days to the Lender the Certificate of Ownership, if any, relating
      to
      such item of Equipment. Each such Certificate of Ownership delivered to the
      Lender under this Section shall be properly endorsed to the Lender.

    

    
      
         

      

      
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    3.6 No
      Fixtures.

    

    (a)  Borrower
      shall not permit or cause any or all of the Collateral to become affixed to
      any
      real property in such a manner, or with such intent, so as to result in such
      Collateral becoming a fixture or otherwise becoming part of any real
      property.

    

    (b)  Borrower
      shall not become a lessee under a real property lease pursuant to which
      the
      lessor has obtained or may obtain any rights in or to
      any
      or
      all of the Collateral, nor shall any such
      lease prohibit, restrain, or impair Borrower's right to remove any Collateral
      from any leased premises, whether such removal is accomplished prior or
      subsequent to any default by Borrower under any such lease or prior or
      subsequent to any termination, cancellation or forfeiture of any such
      lease.

    

    (c)  Prior
      to
      causing or permitting any of the Collateral to be located on any premises in
      which any third party has an interest (whether as owner, mortgagee, beneficiary
      under a deed of trust, lien holder, or otherwise), Borrower shall cause such
      third party to execute and deliver to the Lender such consents, waivers and
      subordinations as may be reasonably necessary or appropriate, in the Lender's
      discretion, to insure the Lender that its security interest and rights in and
      to
      the Collateral are and shall at all times continue to be prior and superior
      to
      the rights of any such third party.

    

    (d)  Borrower
      shall not cause or permit any event to occur which would result in an early
      termination of any real property lease for any premises on which all or part
      of
      the Collateral now is or hereafter may be located.

    3.7Possession
      and Use of Inventory. Borrower
      shall not sell, lease, transfer or otherwise dispose of any or all of the
      Inventory, except for the sale or lease of finished Inventory in the ordinary
      course of Borrower's business. Borrower shall use and deal with the Inventory
      only in a manner consistent with the terms of all insurance policies relating
      to
      the Inventory. Borrower shall not sell, lease, transfer, or otherwise dispose
      of
      any or all of the Inventory in partial or complete satisfaction of any debt
      owed
      by Borrower. Borrower shall keep all Inventory separate from Borrower's other
      property and assets and clearly identified or marked.

    

    3.8Inventory
      Records. Without
      limiting the generality of Section 4.5 below, Borrower shall maintain complete
      and accurate books and records containing entries of all transactions relating
      to the Inventory, including accurate records showing (a) the current Inventory
      stock held by Borrower; (b) the cost and sales records of the Inventory; (c)
      the
      kinds, types, qualities and quantities of the Inventory; and (d) the daily
      withdrawals from and additions to the Inventory.

    

    3.9No
      Warehousing of Inventory. No
      Inventory shall be stored with any warehouse operator or other third person
      without the Lender's prior written consent.

    

    3.10No
      Liability by Lender for Inventory. The
      Lender shall not be directly or indirectly liable or responsible in any way
      or
      under any circumstances to Borrower or any other party (a) for the safe keeping
      of the Inventory; (b) any loss or damage to the Inventory occurring or arising
      in any manner from any cause; (c) any decrease in the value of the Inventory;
      or
      (d) any act or omission by any carrier, warehouse operator, bailee, forwarding
      agent, or other party dealing with all or part of the Inventory. Borrower shall
      bear the entire risk of loss for all damage to and destruction of the
      Inventory.

    
      
         

      

      
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    3.11Schedule
      of Accounts. Upon
      the
      Lender's request exercised no more often than three times during any period
      of
      twelve (12) consecutive months, Borrower shall furnish the Lender with copies
      of
      all contracts, orders, invoices, shipping instructions, delivery receipts,
      bills
      of lading, and other similar documents for any goods, the sale or disposition
      of
      which gives rise to an Account (collectively the "Accounts Receivable
      Documentation"). Upon the Lender's request, Borrower shall also furnish the
      Lender with an aged accounts receivable report in such form as the Lender may
      specify. The Lender shall have the right from time to time to verify the
      validity, amount and any other matters relating to any or all of the Accounts
      directly with the respective Account Debtors by mail, telephone or otherwise,
      either in the Lender's or Borrower's name. Upon an Event of Default by Borrower
      under this Agreement, Borrower shall deliver to the Lender the originals of
      all
      Accounts Receivable Documentation together with the originals of all
      instruments, chattel paper, security agreements, guaranties, and other documents
      and property evidencing or securing the Accounts in the same form as received
      by
      Borrower, each of which shall be properly endorsed by Borrower to the Lender,
      with recourse.

    

    3.12Collection
      of Accounts. Prior
      to
      the occurrence of an Event of Default, Borrower shall have the privilege of
      collecting the Accounts, at Borrower's sole cost and expense. Upon the
      occurrence of an Event of Default, Borrower's privilege of collecting the
      Accounts shall immediately and automatically be revoked without notice to
      Borrower. Following such revocation, the Lender shall have the exclusive right
      to make all collections on the Accounts.

    

    3.13Notice
      to Account Borrowers. Upon
      the
      Lender's reasonable request, Borrower shall give notice, in form and substance
      reasonably acceptable to the Lender, to the Account Debtors of Borrower's grant
      of a security interest in the Accounts to the Lender.

    

    3.14Additional
      Notices. From
      time
      to time upon the Lender's reasonable request, Borrower shall give written notice
      to any Account Borrower designated by the Lender containing such additional
      information and instructions concerning the Lender's rights under this Agreement
      as may be specified by the Lender. Such notices shall be satisfactory in form
      and substance to the Lender. From time to time and coincident with notice to
      Borrower, the Lender shall have the right to give notice to any Account Borrower
      containing such information and instructions concerning the Lender's rights
      under this Agreement as the Lender in its good faith business judgment
      determines to be necessary or appropriate.

    

    3.15No
      Liability by Lender for Accounts. The
      Lender shall not be directly or indirectly liable or responsible in any way
      or
      under any circumstances to Borrower or any other party for (a) any shortage
      or
      discrepancy in, damage to, or loss or destruction of, any goods, the sale or
      other disposition of which gives rise to an Account; (b) any act, omission,
      error or delay of any kind by the Lender in settling, failing to settle,
      collecting, or failing to collect any Account, including any act or omission
      which results in the loss or impairment of the Borrower's rights against any
      third person; (c) settling any Account for less than the full amount thereof;
      (d) any failure or delay by the Lender in enforcing or collecting any payment
      under any Account; or (e) the performance or observance of any or all of
      Borrower's duties, obligations, representations, or warranties under any other
      agreement or document relating to any or all of the Collateral, including the
      Accounts.

    

    3.16Receipt
      of Account Collections by Borrower. If
      for
      any reason Borrower receives any payment in connection with any of the Accounts
      following the occurrence of an Event of Default, Borrower (a) shall immediately
      pay or deliver such payment to the Lender in the original form in which received
      by Borrower; (b) shall endorse to the Lender, with recourse, all checks, drafts,
      money orders, notes, and other 

    
      
         

      

      
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    instruments
      or documents representing such payment, (c) shall not commingle such payment
      with any of Borrower's other funds or property; and (d) shall hold such payment
      separate and apart from Borrower's other funds and property in an express trust
      for the Lender until paid or delivered to the Lender.

    

    3.17Application
      of Account Proceeds. The
      Lender shall apply all payments received by the Lender in connection with the
      Accounts in the order of priority described in Section 7.16 below. All checks,
      drafts, money orders, notes, instruments, documents, and other noncash proceeds
      of the Accounts delivered to the Lender in payment or on account of the
      Obligations shall not constitute payment until such items are actually paid
      in
      cash or other immediately available funds to the Lender.

    

    3.18Borrower's
      Account Obligations. Borrower
      shall at all times in all material respects perform and discharge all
      obligations of Borrower to each Account Debtor in accordance with the terms
      of
      all documents, contracts, invoices, and other agreements between Borrower and
      such Account Debtor.

    

    3.19Returned
      Goods. From
      and
      after the occurrence of an Event of Default:

    

    (a)  Any
      goods
      which are returned by an Account Debtor or otherwise recovered by or for the
      benefit of Borrower shall be physically segregated from Borrower's other
      property, posted with written notice that such goods are subject to the Lender's
      security interest, and held in trust for the Lender for disposition by the
      Lender. Borrower shall promptly notify the Lender of all such returns and
      recoveries; and

    

    (b)  Borrower
      shall not accept the return of any goods and shall not sell any previously
      returned goods without the Lender's prior written consent. The Lender shall
      have
      the right to accept the return of any goods directly from an Account Debtor,
      without notice to or the consent of Borrower, and neither a delivery by Borrower
      of returned or recovered goods to the Lender, nor the acceptance by the Lender
      of returns directly from any Account Debtor, shall in any way effect Borrower's
      liability to the Lender under this Agreement or on account of the
      Obligations.

    

    3.20 Disputed
      Accounts. Borrower
      shall promptly notify the Lender of all material disputes and claims with
      respect to any of the Accounts. From and after the occurrence of an Event of
      Default, (a) the Lender shall have the right to settle, accept reduced amounts,
      adjust disputes and claims directly with, and give releases on behalf of
      Borrower to Account Debtors, upon such terms as the Lender, in its good faith
      business judgment, determines to be appropriate; and (b) without the Lender's
      prior written consent, Borrower shall not compromise, adjust, or grant any
      discount, credit, allowance, or extension of time for payment to any Account
      Debtors.

    

    4. Borrower's
      Covenants.

    

    4.1 Liens.
      Borrower
      shall at all times keep the Collateral free of all liens, encumbrances and
      claims of any kind or nature other than the security interest of the
      Lender.

    4.2 Transfers.
      Borrower
      will not sell, transfer, lease or otherwise dispose of any or all of the
      Collateral or any interest therein to any Person other than Lender, except
      as
      otherwise expressly permitted in this Agreement.

    
      
         

      

      
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    4.3 Taxes.
      Borrower
      will pay when due and prior to delinquency all foreign, federal, state and
      local
      taxes, assessments, and governmental charges now or hereafter levied on or
      which
      are or may become liens against the Collateral.

    

    4.4 Location
      of Tangible Collateral. Without
      the Lender's prior written consent, which consent will not be unreasonably
      withheld, Borrower shall not remove any of the existing tangible Collateral
      from
      the present locations of such Collateral, except finished Inventory sold or
      leased in the ordinary course of Borrower's business.

    

    4.5 Books
      and Records. Borrower
      shall maintain complete and accurate books and records which contain full and
      correct entries of all transactions relating to the Collateral and Borrower's
      business.

    

    4.6 Inspection
      of Collateral. The
      Lender shall have access to the Collateral and all other property of the
      Borrower, wherever located, during normal business hours upon not less than
      two
      (2) Business Days prior written notice for the purposes of examination,
      inspection, verification, audit, testing, and any other reasonable purpose.
      For
      such purposes, the Lender, at no charge or cost, shall have the right to enter
      and remain upon the Borrower's premises as often during normal business hours
      and for such periods as the Lender reasonably determines to be necessary or
      appropriate.

    

    4.7 Reports.
      Upon
      the
      Lender's request, Borrower shall deliver to the Lender such reports and
      information available to Borrower's management concerning the Collateral and
      Borrower's business and affairs as the Lender may reasonably request. Such
      reports shall be in such form, for such periods, contain such information,
      and
      shall be rendered with such frequency as the Lender may reasonably designate.
      All reports and information provided to the Lender by Borrower shall be complete
      and accurate in all material respects at the time provided.

    

    4.8 Further
      Assurances. Borrower
      shall take all actions which may be reasonably necessary or appropriate to
      maintain, preserve, protect, and defend the Collateral and the Lender's security
      interest therein, including all such actions as may be reasonably requested
      by
      the Lender. Upon the Lender's request, Borrower shall execute and deliver to
      the
      Lender such further documents and agreements, in form and substance satisfactory
      to the Lender, as the Lender may reasonably require to effectuate this Agreement
      or to evidence, perfect, maintain, preserve or protect the Lender's security
      interest in the Collateral, including financing statements, continuation
      financing statements, financing statement amendments, security agreements,
      and
      assignments. 

    

    4.9
      Maintenance
      of Collateral.
      Borrower
      (a) shall maintain the Collateral and all of Borrower's other assets in good
      operating and repair condition; (b) shall not use the Collateral or any of
      Borrower's other assets in any unlawful business or for any unlawful purpose;
      and (c) shall not abandon the Collateral or any of Borrower's other
      assets.

    

    5. Warranties
      and Representations by Borrower.

    

    5.1 Warranties
      and Representations. Borrower
      warrants and represents to the Lender as follows:

    
      
         

      

      
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    (a)  Ownership
      of Collateral. Borrower
      is the sole legal and beneficial owner of the Collateral, free and clear of
      all
      liens, encumbrances and security interests, except for the security interest
      in
      favor of the Lender under this Agreement.

    

    (b)  Compliance
      With Laws. The
      Collateral complies with all applicable Governmental Requirements.

    (c)  Equipment.
      The
      Equipment is in good operating condition and repair, normal wear and tear
      excepted, free from material latent and patent defects, and not
      obsolete.

    

    (d)  Inventory.
      The
      Inventory is new, in good condition, of merchantable quality, free from material
      latent and patent defects, and not obsolete. Borrower's retail sales of
      Inventory were less than twenty-five percent (25%) in dollar volume of
      Borrower's total sales of all goods during the twelve (12) months preceding
      the
      attachment of the security interest granted under this Agreement. Borrower's
      retail sales of Inventory shall be less than twenty-five percent (25%) in dollar
      volume of Borrower's total sales of goods during each consecutive twelve (12)
      month period during the term of this Agreement.

    

    (e)  Accounts.
      Each
      and
      all of the Accounts shall at all times comply with the following provisions:
      (i)
      each Account represents an undisputed bona fide existing unconditional
      obligation of the Account Debtor created by the sale, delivery, and acceptance
      of goods or the rendition of services in the ordinary course of Borrower's
      business; (ii) the Account Debtor on each Account has not asserted and to the
      best of Borrower's knowledge will not assert any defense, offset, counterclaim,
      right of return or cancellation, or other right or claim relating to such
      Account; (iii) each Account will be paid in full on the maturity date of the
      Account; (iv) no petition under the federal bankruptcy laws or any other
      applicable federal or state bankruptcy, insolvency, or similar law has been
      or
      will be filed by or against the Account Debtor on any Account, and no Account
      Debtor has made or to the best of Borrower's knowledge will make an assignment
      for the benefit of creditors, become insolvent, fail or go out of business,
      nor
      does Borrower have notice that any of the foregoing is threatened or is about
      to
      occur with respect to any Account Debtor; (v) no Account is or will be impaired
      or reduced in value; (vi) no Account Debtor on any Account is a shareholder,
      director, partner or agent of Borrower, or a person controlling, controlled
      by,
      or under common control with Borrower; (vii) no Account is owed by an Account
      Debtor to whom Borrower is or may become liable in connection with goods sold
      or
      services rendered by the Account Debtor to Borrower or any other transaction
      or
      dealing between the Account Debtor and Borrower; and (viii) all documents,
      instruments and agreements relating to all Accounts are and shall be legally
      enforceable in accordance with their respective terms provided, however, that
      Borrower shall not be in breach of the representation and warranty of this
      Section 5.1(e) if the aggregate amount of all Accounts outstanding at any time
      that fail to satisfy any of clauses (i) through (vii) above do not exceed five
      percent (5%) of the aggregate amount of all outstanding Accounts. All statements
      made and all unpaid balances appearing in all invoices, instruments and other
      documents evidencing the Accounts are and shall be at all times true and
      correct. All sales and other transactions underlying or giving rise to each
      Account shall fully comply in all material respects with all applicable laws,
      ordinances, governmental rules and regulations.

    

    5.2 Borrower's
      Warranties. Borrower's
      warranties and representations set forth in Section 5.1 above shall be true
      and
      correct at the time of execution of this Agreement by Borrower and shall
      constitute continuing representations and warranties as long as any of the
      Obligations remain outstanding.

    
      
         

      

      
        -73-

        
          

        

      

      
         

      

    

    

    6.  Events
      of Default. The
      occurrence of any of the following shall constitute an Event of Default under
      this Agreement, at the option of the Lender:

    

    6.1 Default
      Under Loan Agreement. The
      occurrence of any "Event of Default" (as such term is defined in the Loan
      Agreement) under the terms of the Loan Agreement;

    

    6.2 Impairment
      of Collateral. The
      Lender reasonably and in good faith deems itself to be insecure because of
      any
      or all of the following: (i) any person fails to perform any of its obligations
      under the terms of any document that is part of, or is held by the Lender as,
      Collateral; or (ii) the validity or priority of the Lender's security interest
      in the Collateral is impaired for any reason;

    

    6.3 Decline
      in Collateral Value. Any
      deterioration or impairment of the Collateral or any decline or depreciation
      in
      the value of the Collateral (whether actual or reasonably anticipated by the
      Lender) which, in the Lender's discretion, causes the character or value of
      the
      Collateral to become unsatisfactory to the Lender; or

    

    6.4 Loss
      of Collateral. The
      Lender reasonably and in good faith believes that the Collateral is in danger
      of
      misuse, dissipation, commingling, loss, theft, damage or destruction, or is
      otherwise impaired or at risk of being impaired.

    

    7.  Remedies
      Upon
      Default. Upon
      the
      occurrence of any Event of Default, the Lender shall have the following rights
      and remedies:

    

    7.1 Rights
      of Secured Party. The
      Lender shall have all of the rights and remedies of a secured party under the
      California Uniform Commercial Code and under all other applicable
      laws.

    

    7.2 Acceleration.
      The
      Lender may declare any or all of the Obligations to be immediately due and
      payable, including the indebtedness evidenced by the Note.

    

    7.3 Extensions
      of Credit. The
      Lender may discontinue advancing money or extending credit to or for the benefit
      of Borrower in connection with the Loan or under any other document or agreement
      between the Lender and Borrower.

    

    7.4 Assembly
      of Collateral. The
      Lender may require Borrower to assemble the Collateral and make it available
      to
      the Lender at a place designated by the Lender.

    

    7.5 Possession
      of Collateral. The
      Lender, without a breach of the peace, may enter any of the premises of Borrower
      and search for, take possession of, remove, keep or store any or all of the
      Collateral. If the Lender seeks to take possession of any or all of the
      Collateral by court process, Borrower irrevocably and unconditionally agrees
      that a receiver may be appointed by a court for such purpose without regard
      to
      the adequacy of the security for the Obligations. The Lender shall have the
      right to remain on Borrower's premises or cause a custodian to remain thereon
      in
      exclusive control of such premises without charge for as long as the Lender
      deems necessary in order to complete the enforcement of its rights under this
      Agreement. If the Lender seeks possession of any or all of the Collateral by
      court process, Borrower irrevocably waives (a) any bond and any surety or
      security relating thereto required by any statute, court rule or otherwise
      as an
      incident or condition to such possession; (b) any demand for possession prior
      to
      the commencement of any suit or action to recover possession; and (c) any
      requirement that the Lender retain possession of and not dispose of such
      Collateral until after trial or final judgment.

    
      
         

      

      
        -74-

        
          

        

      

      
         

      

    

    

    7.6 Preparation
      of Collateral. The
      Lender may complete processing,

    manufacturing
      or repair all or any part of the Collateral prior to a disposition and, for
      such
      purpose and for the purpose of removal, the Lender shall have the right to
      use
      Borrower's premises, vehicles, hoists, lifts, cranes, equipment and all other
      property without charge. The Lender may sell, ship, reclaim, lease or otherwise
      dispose of all or any part of the Collateral in its condition at the time the
      Lender obtains possession of such Collateral or after further manufacturing,
      processing, or repair.

    

    7.7Foreclose
      on Collateral. The
      Lender may sell or dispose of the Collateral at public or private sale, in
      one
      or more sales, as a unit or in parcels, at wholesale or retail, and at such
      time
      and place and on such terms as the Lender may determine. The Lender may be
      the
      purchaser of any or all of the Collateral at any public sale and, if permitted
      under applicable law, any private sale.

    

    7.8Accounts.
      With
      respect to the Accounts, and without limiting the Lender's rights under Section
      3 above, the Lender may:

    

    (a)  Direct
      any or all Account Debtors to make payment directly to the Lender or to a
      specified agent of the Lender; and

    

    (b)  (i)
      Demand, collect, receive and give receipts for any and all money and other
      property due or to become due in connection with the Accounts, in the Lender's
      or Borrower's name; (ii) take possession of and endorse and collect any or
      all
      notes, checks, drafts, money orders, or other instruments of payment relating
      to
      the Collateral (including payments made under or with respect to any policy
      of
      insurance); and (iii) file any claim and take any other action in any court
      of
      law or equity which the Lender determines to be appropriate for the purpose
      of
      collecting any or all of the Accounts; provided, however, that the Lender shall
      not be obligated in any manner to make any demand or to make any inquiry as
      to
      the nature or sufficiency of any payment received by it, or to present or file
      any claim or take any action to collect or enforce the payment of any or all
      of
      the Accounts.

    

    7.9Postponement.
      Any
      public sale of any or all of the Collateral may be postponed from time to time
      by public announcement at the time and place last scheduled for the
      sale.

    

    7.10Discharge
      of Other Claims. The
      Lender's sale or disposition of any or all of the Collateral shall transfer
      to
      the purchaser all of the Borrower's rights in such Collateral and discharge
      all
      security interests and liens subordinate to the Lender's security interest
      in
      the Collateral, and the purchaser shall acquire such Collateral free of all
      such
      subordinate interests and liens.

    

    7.11Time
      of Sale.
      Without
      limiting the generality of this Section 7.11, the Lender shall conclusively
      be
      deemed to have made a commercially reasonable disposition of any or all of
      the
      Collateral if (a) the Lender holds a public or private sale of such Collateral
      at least five (5) days after notice is given to Borrower of the date fixed
      for
      any public sale or the date on or after which any private sale or other
      disposition of the Collateral is to be made by the Lender; (b) with respect
      to
      any public sale, the sale is held at least five days after notice is published
      in a newspaper of general circulation in the county in which such Collateral
      is
      located; and (c) respect to any public disposition, the sale is held any time
      between the hours of 8 a.m. and 5 p.m. in the county in which such Collateral
      is
      located at any place designated by the Lender.

    
      
         

      

      
        -75-

        
          

        

      

      
         

      

    

    

    7.12Information.
      Without
      limiting the generality of this Section 7.12, it shall conclusively be deemed
      to
      be commercially reasonable for the Lender to direct any prospective purchaser
      of
      any or all of the Collateral to Borrower to ascertain all information concerning
      the status of the Collateral.

    

     7.13
      Other
      Disposition. The
      Lender's disposition of any or all of the Collateral in any manner which differs
      from the procedures specified in Section 7.11 or 7.12 above shall not be deemed
      to be commercially unreasonable.

    

    7.14Judicial
      Action. The
      Lender may reduce its claims for breach of any of the Obligations to judgment
      and foreclose or otherwise enforce its security interest in any or all of the
      Collateral by any available judicial procedure. lithe Lender has reduced its
      claims for breach of any of the obligations to judgment, the lien of any levy
      which may be made on any or all of the Collateral by virtue of any execution
      based upon such judgment shall relate back to the date of the Lender's
      perfection of its security interest in such Collateral. A judicial sale pursuant
      to such execution shall constitute a foreclosure of the Lender's security
      interest by judicial procedure, and the Lender may purchase at such sale and
      thereafter hold the Collateral free of all rights of Borrower
      therein.

    

    7.15 Discharge
      Claims. The
      Lender may discharge claims, demands, liens, security interests, encumbrances
      and taxes affecting any or all of the Collateral and take such other actions
      as
      the Lender determines to be necessary or appropriate to protect the Collateral
      and the Lender's security interest therein. The Lender, without releasing
      Borrower or any other party from any of the Obligations, may perform any of
      the
      Obligations in such manner and to such extent as the Lender determines to be
      necessary or appropriate to protect the Collateral and the Lender's security
      interest therein.

    

    7.16 Proceeds
      of Sale. The
      proceeds of any sale or disposition of the Collateral by the Lender shall be
      applied in the following order of priority:

    

    (a)  First,
      to
      all liabilities, obligations, costs, and expenses, including reasonable
      attorneys' fees and costs, incurred by the Lender in exercising any of its
      rights or remedies under this Agreement, including the costs and expenses of
      retaking, holding, and selling any or all of the Collateral and the costs and
      expenses of enforcing and collecting upon any or all of the
      Accounts;

    

    (b)  Second,
      to the payment of the Obligations in such order and amounts as the Lender may
      determine in its discretion;

    

    (c)  Third,
      to
      (i) the satisfaction of indebtedness secured by any subordinate security
      interest in the Collateral if written demand therefor is received by the Lender
      before distribution of any such proceeds; and (ii) to the satisfaction of any
      subordinate attachment lien or execution lien pursuant to subdivision (b) of
      Section 701.040 of the Code of Civil Procedure if notice of the levy of
      attachment or execution is received by the Lender before distribution of any
      such proceeds. If requested by the Lender, the holder of a subordinate security
      interest in the Collateral shall furnish the Lender with proof of its interest
      in the Collateral acceptable to the Lender, and unless such holder does so,
      the
      Lender shall have no obligation to comply with such holder's demand;
      and

    

    (d)  Fourth,
      the surplus, if any, shall be paid to Borrower.

    
      
         

      

      
        -76-

        
          

        

      

      
         

      

    

    

    8.  Liability
      for Deficiency. Borrower
      shall at all times remain liable for any deficiency remaining on the Obligations
      for which Borrower is liable after any disposition of any or all of the
      Collateral and after the Lender's application of any proceeds to the
      Obligations.

    

    9.  Power
      of Attorney. Borrower
      irrevocably appoints the Lender, with full power of substitution, as Borrower's
      attorney-in-fact, coupled with an interest, with full power, in the Lender's
      own
      name or in the name of Borrower:

    

    9.1 At
      any
      time after the occurrence of any Event of Default, to do any or all of the
      following:

    

    (a)  Endorse
      any checks, drafts, money orders, notes, and other instruments or documents
      representing or evidencing the Collateral, or proceeds of the
      Collateral;

    

    (b)  Pay
      or
      discharge claims, demands, liens, security interests, encumbrances, or taxes
      affecting or threatened against any or all of the Collateral;

    

    (c)  Receive
      payment of all Accounts;

    

    (d)  Execute
      any invoices relating to any Account, any draft against any Account Debtor,
      any
      notice to any Account Debtor, any proof of claim in bankruptcy, any notice
      of
      lien, claim of mechanic's, materialman's or other lien, or assignment or
      satisfaction of mechanic's, materialman's or other lien;

    

    (e)  Grant
      any
      extension of time to pay any Account, compromise claims and settle Accounts
      for
      less than face value thereof, and execute all releases and other documents
      in
      connection therewith;

    

    (f)  Commence,
      prosecute or defend any suit, action or proceeding relating to any or all of
      the
      Collateral;

    

    (g)  Receive
      and open all mail addressed to Borrower and, in the exercise of such right,
      the
      Lender shall have the right, in Borrower's name, to notify the Post Office
      authorities to change the address for the delivery of mail addressed to Borrower
      to such other address as the Lender may designate, including the Lender's own
      address. The Lender shall promptly turn over to Borrower all of such mail not
      relating to the Collateral;

    

    (h)  Direct
      any financial institution which is a participant with the Lender in extensions
      of credit to or for the benefit of Borrower, or which is an institution with
      which any deposit account is maintained, to pay to the Lender all monies on
      deposit by Borrower with said financial institution which are payable by said
      financial institution to Borrower, regardless of any loss of interest, charge
      or
      penalty as a result of payment before maturity;

    

    (i)  Settle
      and adjust, and give releases of, any insurance claim that relates to any of
      the
      Collateral, obtain payment of claim, and make all determinations and decisions
      with respect to any such policy of insurance, and endorse Borrower's name on
      any
      check, draft, instrument or other item of payment or the proceeds of such
      policies of insurance;

    
      
         

      

      
        -77-

        
          

        

      

      
         

      

    

    

    (j) Instruct
      any accountant or other third person having custody or control of any books
      or
      records belonging or relating to the Collateral to give the Lender full rights
      of access with respect thereto;

    

    (k) 
      Execute
      on behalf of Borrower any document exercising, transferring or assigning any
      option to purchase, sell or otherwise dispose of or to lease, as lessor or
      lessee, any real or personal property;

    

    (l) Sell,
      transfer, pledge, make any agreement with respect to, or otherwise deal with
      any
      or all of the Collateral as though the Lender were the owner thereof for all
      purposes; and

    

    (m) Execute
      on behalf of Borrower any and all documents and instruments (including notices
      of assignment) required under the Federal Assignment of Claims Act for the
      direct payment of Accounts to the Lender.

    

    9.2 To
      execute any financing statement, continuation financing statement, financing
      statement amendment, security agreement, assignment, notice, Certificate of
      Ownership, application for a Certificate of Ownership, and all other documents
      which the Lender, in its discretion, determines to be necessary or appropriate
      in order to (a) perfect or maintain the Lender's security interest in the
      Collateral; (b) exercise any or all of the Lender's rights under this Agreement;
      or (c) to consummate or effectuate any of the transactions contemplated by
      this
      Agreement.

    

    10.  Waivers.
      Borrower
      hereby waives presentment, demand for payment, protest, notice of demand,
      dishonor, protest and nonpayment, and all other notices and demands in
      connection with the delivery, acceptance, performance, default under, and
      enforcement of the Obligations. Borrower waives the right to assert any statute
      of limitations as a defense to the enforcement of any of the Obligations to
      the
      fullest extent permitted by law.

    

    11.  Cumulative
      Remedies. The
      Lender's rights and remedies under this Agreement are cumulative with and in
      addition to all other rights and remedies which the Lender may have in
      connection with the Loan. The Lender may exercise any one or more of its rights
      and remedies under this Agreement at the Lender's option and in such order
      as
      the Lender may determine in its discretion. The Lender may exercise its rights
      under this Agreement from time to time and at such times as the Lender may
      determine.

    

    12.  Actions.
      The
      Lender shall have the right, but not the obligation, to commence, appear in,
      or
      defend any action or proceeding which affects or which the Lender determines
      may
      affect (a) the Collateral; (b) Borrower's or the Lender's rights or obligations
      under the Loan Documents; (c) Borrower's or the Lender's rights under this
      Agreement; or (d) the Loan. Whether or not Borrower is in default under the
      Loan
      Documents, the Lender shall at all times have the right to take any and all
      actions which the Lender in its good faith business judgment determines to
      be
      necessary or appropriate to protect the Lender's interest in connection with
      the
      Loan.

    

    13.  Attorneys'
      Fees. Upon
      the
      Lender's demand, Borrower shall reimburse the Lender for all costs and expenses,
      including attorney's fees and costs, which are incurred by the Lender, whether
      before or after the commencement of any action or proceeding by the Lender
      following an Event of Default under the Loan Documents, in connection with
      any
      or all of the following: (a) the exercise of any or all of the Lender's rights
      and remedies under the Loan Documents based on an Event of Default, whether
      or
      not any legal proceedings are instituted by the Lender; (b) the protection,
      preservation, management, operation, or maintenance of any or all of the

    
      
         

      

      
        -78-

        
          

        

      

      
         

      

    

    Collateral;
      (c) the sale or disposition of any or all of the Collateral; (d) the
      commencement and prosecution of any suit, action, or proceeding with respect
      to
      any or all of the foregoing matters, including an action for relief from the
      automatic stay arising under Bankruptcy Code § 362(a), 11 U.S.C. § 362(a); or
      (e) the defense of any suit, action or proceeding by Borrower or any other
      party
      relating to any or all of the Collateral. Borrower's obligation to reimburse
      the
      Lender under this Section shall include payment of interest on all amounts
      expended by the Lender from the date of expenditure at the rate of interest
      specified in the Note.

    

    14.  Notices.
      All
      notices under this Agreement shall be given in accordance with the notice
      provision contained in the Loan Agreement.

    

    15.  Applicable
      Law. The
      Loan
      Documents shall be construed in accordance with and governed by the laws of
      the
      State of California.

    

    16.  Time
      of Essence. Time
      is
      of the essence of each provision of the Loan Documents.

    

    17.  Interpretation.
      The
      headings to sections of this Agreement are for convenient reference only, and
      they do not in any way define limit any of the terms of this Agreement and
      shall
      not be used in interpreting this Agreement. For purposes of this Agreement,
      (a)
      the term "including" means "including without limitation"; (b) the term
      "document" shall be deemed to include all written contracts, commitments,
      agreements, and instruments; and (c) the term "discretion" when applied to
      any
      determination, consent or approval right by the Lender, shall be deemed to
      mean
      the Lender's sole but good faith business judgment. Whenever the context of
      this
      Agreement reasonably requires, all words used in the singular shall be deemed
      to
      have been used in the plural, and the neuter gender shall be deemed to include
      the masculine and feminine gender, and vice versa. For purposes of this
      Agreement, (i) all references to the Collateral shall be deemed to refer to
      all
      or any part of the Collateral; and (ii) all references to the Loan Documents
      shall be deemed to refer to any or all of the Loan Documents.

    

    18.  Entire
      Agreement. The
      Loan
      Documents contain the entire agreement between the Lender and Borrower
      concerning the subject matter of the Loan Documents and supersede all prior
      and
      contemporaneous
      agreements, statements, understandings, terms, conditions, representations
      and
      warranties, whether oral or written, made by the Lender or Borrower concerning
      the Loan.

    

    19.  Severability.
      If
      any
      provision of the Loan Documents shall be held by any court of competent
      jurisdiction to be unlawful, void, voidable, or unenforceable for any reason,
      such provision shall be deemed severable from and shall in no way affect the
      validity or enforceability of the remaining provisions of the Loan Documents.
      Without limiting the generality of the preceding sentence, if the Lender's
      security interest in any part of the Collateral is held to be unlawful, void,
      voidable or unenforceable for any reason, such defect shall in no way affect
      the
      validity or enforceability of the remaining terms and conditions of this
      Agreement.

    

    20.  No
      Third Party Beneficiaries. The
      Loan
      Documents are entered into for the sole protection and benefit of the Lender,
      Borrower and Guarantors (if any), as applicable, and their respective permitted
      successors and assigns. No other Person shall have any rights or causes of
      action under the Loan Documents.

    

    21.  Documents.
      All
      documents and instruments which Borrower is required to deliver to the Lender
      under this Agreement shall be acceptable in form and substance to the Lender
      acting in good faith.

    
      
         

      

      
        -79-

        
          

        

      

      
         

      

    

    

    22.  Performance
      of Covenants. Borrower
      shall perform all of its covenants under this Agreement at its sole cost and
      expense.

    

    23.  No
      Waiver by Lender. No
      waiver
      by the Lender of any of its rights or remedies in connection with the Loan
      Documents shall be effective unless such waiver is in writing and signed by
      the
      Lender.

    

    24.  Term.
      This
      Agreement shall continue in full force and effect as long as any of the
      Obligations are outstanding and until terminated by written agreement of the
      Lender.

    

    25.  Amendment.
      This
      Agreement may be modified only by a written agreement signed by Borrower and
      the
      Lender.

    

    26.  Successors.
      This
      Agreement shall be binding upon and inure to the benefit of Borrower and the
      Lender and their respective permitted successors and assigns.

    

    

    

    

    
      	 	
              Borrower:

            	 
	 	
              CRESA
                Partners of Orange County, LP, 

            	 
	 	
              a
                Delaware limited partnership

            	 
	 	 	 
	
              By:
                

            	
              CRESA
                Partners-West, Inc., 

            	 
	 	
              a
                California corporation

            	 
	
              Its:

            	
              General
                Partner

            	 
	 	 	 
	
              By:
                

            	
              /s/
                Kevin John Hayes

            	 
	 	
              Kevin
                John Hayes, President

            	 
	 	 	 
	 	
              Accepted:

            	 
	 	
              First
                Republic Bank

            	 
	 	 	 
	
              By:
                

            	
              /s/
                Carolyn Powell

            	 
	 	
              Carolyn
                Powell

            	 
	
              Its:
                

            	
              Managing
                Director

            	 

    

    

    -80-Exhibit 10.9 - Form of Limited Guaranty of Line of Credit

    Exhibit
      10.9

    

    Loan
      No.: 85-410896-5

    

    LIMITED
      GUARANTY

    

    This
      LIMITED GUARANTY is made by and between FIRST
      REPUBLIC BANK, a
      Nevada
      corporation (the "Lender"), and the "Guarantor".

    

    1.  Guaranty
      of Payment and Performance. For
      valuable consideration and to induce Lender to grant credit or other financial
      accommodations to CRESA
      Partners of Orange County, LP, a Delaware limited partnership
(the
      "Borrower"), Guarantor, as primary obligor and not merely as surety, absolutely
      and unconditionally guarantees and promises to pay Lender or order, on demand,
      in lawful money of the United States, subject to the limitation in section
      3
      below, any and all indebtedness (as hereinafter defined) of Borrower to Lender
      under any existing or future agreement with Lender, and also absolutely and
      unconditionally guarantees the due performance by Borrower of all its
      obligations under all existing and future agreements with Lender.

    

    2.  Indebtedness.
      The
      word
      "indebtedness" is used herein in its most comprehensive sense and includes
      any
      and all loans, advances, debts, lease obligations, and other obligations and
      liabilities of Borrower, heretofore, now, or hereafter made, incurred or
      created, whether voluntary or involuntary and however arising, whether due
      or
      not due, absolute or contingent, liquidated or nonliquidated, determined or
      undetermined, whether Borrower may be liable individually or jointly with
      others, or whether recovery upon such indebtedness may be or hereafter become
      barred or otherwise unenforceable.

    

    3.  Maximum
      Principal Liability. The
      liability of Guarantor under this Guaranty shall not exceed at any time an
      amount equal to the sum of (a) _______%
      of
      the
      then outstanding indebtedness of Borrower to Lender (the "Guaranty Liability
      Amount"), (b) all interest on the Guaranty Liability Amount of the indebtedness
      which may accrue from the date of any demand for payment made upon Guarantor,
      (c) all attorneys' fees and all other costs and expenses incurred by Lender
      in
      the enforcement or collection of Borrower's indebtedness, and (d) Guarantor's
      obligations to pay attorneys' fees and all other costs and expenses which may
      be
      incurred by Lender in the protection, preservation or enforcement of any rights
      of Lender under this Guaranty.

    

    4.  Continuing
      Guaranty. This
      Guaranty is, as to each Guarantor, a continuing guaranty, which shall remain
      effective without reaffirmation until it has been terminated in a writing sent
      by certified mail to Lender at the address set forth below. Such termination
      shall be applicable only to transactions committed to or having their inception
      after the effective date of termination and upon actual receipt of written
      notice by Lender and shall not affect rights and obligations arising out of
      transactions committed to or having their inception prior to such date.
      Termination by any Guarantor shall not affect the continuing liability hereunder
      of any Guarantor who does not give notice of termination. This Guaranty shall
      not be impaired by any modification, supplement, extension or amendment of
      any
      contract or agreement to which the parties thereto may hereafter agree, or
      by
      any modification, release or other alteration of any of the indebtedness hereby
      guaranteed or of any security therefore, including without limitation, pursuant
      to a bankruptcy or reorganization proceeding in connection with Borrower, or
      by
      any agreement or arrangements whatsoever with Borrower or anyone else. Guarantor
      acknowledges and agrees that the indebtedness of Borrower may be a revolving
      credit and/or that the amount of the indebtedness may at any one time be zero
      dollars, which shall not constitute a termination of this Guaranty.

    

    5.  Joint
      and Several Obligations. The
      obligations hereunder are joint and several as to each and every Guarantor,
      and
      are independent of Borrower's obligations. A separate action or actions may
      be
      brought against Guarantor, or any one of them, whether action is brought against
      Borrower or whether Borrower is joined in any such action or actions. Each
      Guarantor agrees that any releases which may be given by Lender to any one
      or
      more of the Guarantor shall not release him, her or it from this
      Guaranty.

    

    6.  Authorization.
      Guarantor
      authorizes Lender, without notice or demand and without affecting its liability
      hereunder, from time to time to (a) renew, compromise, extend, accelerate or
      otherwise change the time for payment of, or otherwise change the terms of
      the
      indebtedness or any part thereof, including any increase or decrease in the
      rate
      of interest thereon; (b) take and hold security for the payment of this Guaranty
      or the indebtedness guaranteed, and exchange, enforce, waive and release any
      such security; (c) apply such security and direct the order or manner of sale
      thereof as Lender in its sole discretion may determine; (d) accept or discharge
      (in whole or in part) additional guarantors; and (e) assign, without notice,
      this Guaranty in whole or in part and/or Lender's rights hereunder to anyone
      at
      any time.

    
      
         

      

      
        -81-

        
          

        

      

      
         

      

    

    

    7.  Waivers.
      Guarantor
      waives all rights and defenses Guarantor may have because Borrower's debt is
      secured by real property, including, without limitation, all rights and defenses
      under Sections 580a, 580b, 725a and 726 of the California Code of Civil
      Procedure. Guarantor waives all rights and defenses arising from Lender's
      election of remedies, even though that election, such as nonjudicial foreclosure
      with respect to security for a guaranteed obligation, has destroyed Guarantor's
      rights of subrogation and reimbursement against Borrower by the operation of
      Section 580d of the Code of Civil Procedure or other similar law. Guarantor
      waives any right to require Lender to (a) proceed against Borrower; (b) proceed
      against or exhaust any security held from any person or marshalling of assets
      or
      liens; (c) proceed against any other Guarantor; or (d) pursue any other remedy
      available to Lender. Guarantor waives any defense arising by reason of any
      disability or other defense of Borrower or by reason of the cessation from
      any
      cause whatsoever of the liability of Borrower. Guarantor waives all
      presentments, demands for performance, notices of nonperformance, protests,
      notices of protest, notices of dishonor, notices of default or demand, notices
      of acceptance of and reliance on this Guaranty and of the existence, creation,
      or incurring of new or additional indebtedness, notices of renewal, extension
      or
      modification of the indebtedness, notice of any and all favorable and
      unfavorable information, whether financial or other, about Borrower, heretofore,
      now, or hereafter learned or acquired by Lender and all other notices to which
      Guarantor or any of them might otherwise be entitled, and the right to a jury
      trial in any action hereunder or arising out of Lender's transactions with
      Borrower. Guarantor hereby waives any and all suretyship defenses now or
      hereafter available to it under the California Civil Code or the Commercial
      Code, including, without limitation, (i) California Civil Code Sections 2799,
      2808, 2809, 2810, 2815, 2819, 2820, 2821, 2822, 2838, 2839, 2845, 2846, 2847,
      2848, 2849, 2850, 2899 and 3433; (ii) Chapter 2 of Title 14 of the California
      Civil Code; or (iii) California Commercial Code Section 3605. Guarantor waives
      the benefit of any statute of limitations affecting its liability hereunder
      or
      the enforcement hereof. Guarantor acknowledges that the waivers provided herein
      are made with Guarantor's full knowledge of the significance and consequence
      of
      such waivers, and that Lender is relying on such waivers.

    

    8.  Subrogation;
      Subordination. So
      long
      as any indebtedness of Borrower to Lender remains outstanding, Guarantor waives
      and agrees not to assert any right of subrogation, indemnity or contribution,
      all right to enforce any remedy Lender may have against Borrower or any other
      person, and any right to participate in security now or hereafter held by
      Lender, including, without limitation, any such right set forth in California
      Civil
      Code
      Sections 1845, 2848 or 2849. Any and all present and future debts and
      obligations of Borrower to each Guarantor are hereby postponed in favor of
      and
      subordinated to the full payment and performance of all indebtedness of Borrower
      to Lender. Any amounts received on such indebtedness or obligations owed to
      Guarantor shall be held by Guarantor as trustee and paid over to Lender without
      affecting Guarantor's liability under this Guaranty.

    

    9.  Financial
      Condition. Guarantor
      assumes the responsibility to keep informed of the financial status of Borrower
      and of any circumstance which may affect Guarantor's obligations or Borrower's,
      and Guarantor recognizes and agrees that Lender is not obligated to keep
      Guarantor informed of any such circumstances. Where Borrower is a corporation,
      partnership or limited liability company it is not necessary for Lender to
      inquire into the powers of Borrower of the officers, directors, partners,
      manager or agents acting or purporting to act on its behalf, and
      any
      indebtedness made or created in reliance upon the professed exercise
      of such
      powers shall be guaranteed hereunder.
      Guarantor agrees that by executing this Guaranty it assumes all risks of
      bankruptcy or reorganization cases or proceedings in connection with
      Borrower.

    

    10.  Collateral.
      Guarantor's
      performance of any and all obligations of Guarantor to Lender no matter how
      or
      when arising, whether absolute or contingent, whether due or to become due,
      and
      whether under this Guaranty or otherwise are secured by (a) Not Applicable,
      and
      (b) all monies or deposits of any Guarantor at any
      time
      in Lender's possession. Lender
      shall have the right to enforce such security interests and the right to offset
      against such security without notice or demand.

    
      
         

      

      
        -82-

        
          

        

      

      
         

      

    

    

    11.  Claims
      in Bankruptcy. Guarantor
      shall file all claims against Borrower in any bankruptcy, reorganization or
      liquidation proceeding and shall assign to Lender such claims and all of its
      rights related thereto. If Guarantor fails to do so at Lender's request, Lender
      is authorized, and is hereby irrevocably granted Borrower's power of attorney,
      to file claims on Guarantor's behalf and to file an assignment of such claims
      with the bankruptcy court or liquidating entity. Guarantor hereby assigns to
      Lender all of Guarantor's rights to any payments on any such
      claims.

    

    12.  Revival.
      If
      Lender
      is required to reimburse to Borrower or any person any amount previously
paid
      or
recovered
      on account of the indebtedness as a preference, fraudulent transfer or because
      of any bankruptcy proceeding or similar proceeding, Guarantor's obligations
      shall be reinstated and revived.

    

    13.  Waiver
      of Jury Trial. GUARANTOR
      IRREVOCABLY WAIVES ALL RIGHTS TO A JURY TRIAL IN ANY ACTION, SUIT, OR PROCEEDING
      OF ANY KIND DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY RELATING TO
      THE
      INDEBTEDNESS OR THIS GUARANTY, ANY OR ALL OF THE REAL AND PERSONAL PROPERTY
      COLLATERAL SECURING THE INDEBTEDNESS OR THIS GUARANTY, OR ANY OF THE
      TRANSACTIONS WHICH ARE CONTEMPLATED BY THE FINANCING DOCUMENTS OR THIS GUARANTY.
      THIS WAIVER IS INTENDED TO APPLY, TO THE FULLEST EXTENT PERMITTED BY LAM, TO
      ANY
      AND ALL DISPUTES AND CONTROVERSIES THAT ARISE OUT OF OR IN ANY WAY RELATE TO
      ANY
      OR ALL OF THE MATTERS DESCRIBED IN THE PRECEDING SENTENCE, INCLUDING, WITHOUT
      LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
      CLAIMS OF ANY KIND. THIS GUARANTY MAY BE FILED WITH ANY COURT OF COMPETENT
      JURISDICTION AS GUARANTOR'S WRITTEN CONSENT TO WAIVER OF A JURY
      TRIAL.

    

    14.  Miscellaneous.

    

    (a)  Guarantor
      agrees to pay attorneys' fees and all other costs and expenses which may be
      incurred by Lender in the enforcement or interpretation of Lender's rights
      under
      this Guaranty in any state, federal or bankruptcy proceeding.

    

    (b)  Any
      married person who signs this Guaranty hereby expressly agrees that recourse
      may
      be had against his/her separate property for all his/her obligations under
      this
      Guaranty.

    

    (c)  This
      Guaranty contains the entire guaranty agreement between Guarantor and Lender,
      and supercedes all prior agreements and negotiations whether oral or written
      pertaining to the subject matter of this Guaranty. No modification or amendment
      of this Guaranty shall be effective unless it is in writing and executed by
      Guarantor and Lender.

    

    (d)  The
      death
      of any Guarantor shall not terminate this Guaranty as to such deceased or as
      to
      any other Guarantor. This Guaranty shall be binding upon the heirs, executors,
      administrators, successors and assigns of each Guarantor and shall inure to
      the
      benefit of Lender's successors and assigns. Guarantor may not assign its rights
      or obligations hereunder.

    

    (e)  In
      all
      cases where there is more than one Borrower named herein, or when this Guaranty
      is executed by more than one Guarantor, the "Borrower" and the word "Guarantor,"
      respectively, shall mean all and any one or more of them.

    
      
         

      

      
        -83-

        
          

        

      

      
         

      

    

    

    (f)  All
      acts
      and
      transactions hereunder and the rights and obligations of the parties hereto
      shall be governed construed and interpreted in accordance with the laws of
      the
      State of California.

    

    (g)  All
      notices to be provided under this Guaranty must be in writing and delivered
      to
      the addresses provided below.

    

    (h)  All
      rights and powers of Lender under this Guaranty and under any other agreement
      between Guarantor and Lender shall be cumulative and in addition to all right,
      power and remedies given to Lender at law.

    

    (i)  Headings
      in this Guaranty are for convenience of reference and shall not be used to
      interpret or define the provisions of this Guaranty.

    

    (j)  Each
      Guarantor declares that he, she or it understands the contents of this Guaranty
      and has had an opportunity to consult with an attorney regarding the form and
      content of this Guaranty.

    

    

    IN
      WITNESS WHEREOF, the
      undersigned Guarantor has executed this Guaranty this 8th
      day of
      June,
2006.

    

    

    
      	
              Lender’s
                Address:

            	 	 	 
	 	 	 	 
	
              First
                Republic Bank

            	 	 	 
	
              111
                Pine Street

            	 	 	 
	
              San
                Francisco, CA 94111

            	 	 	 
	
              Attn:
                Commercial Loan Operations

            	 	 	 
	 	 	 	 
	 	
              By:

            	
              Guarantor

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    -84-

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