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                                                                   EXHIBIT 10.18

                   SENIOR LOAN AND SECURITY AGREEMENT NO. 4673

THIS SENIOR LOAN AND SECURITY AGREEMENT NO. 4673 (this "Security Agreement") is
dated as of June 23, 2000 between RESOURCE/PHOENIX, INC., a California
corporation ("Borrower") and LEASE MANAGEMENT ASSOCIATES, INC., a Nevada
corporation ("Lender").

                                    RECITALS

      A.    Borrower desires to borrow from Lender in one or more borrowings the
Commitment amount as defined in Section 3(a)(ii) below, and Lender desires to
loan, subject to the terms and conditions herein set forth, such amount to
Borrower (each, a "Loan" and collectively, the "Loans"). Such borrowings shall
be evidenced by one or more Senior Secured Promissory Notes (each, a "Note" and
collectively, the "Notes"), in the form attached hereto.

      B.    As security for Borrower's obligations to Lender under this Security
Agreement, the Notes and any other agreement between Borrower and Lender,
Borrower will grant to Lender hereunder a first priority security interest in
the items described on Exhibit A ( the "Collateral").

NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

SECTION 1. TERM OF AGREEMENT. The term of this Security Agreement begins on the
date set forth above and shall continue thereafter and be in effect so long as
and at any time any Note entered into pursuant to this Security Agreement is in
effect. The Term and monthly payment amount payable with respect to each item of
Collateral shall be as set forth in and as stated in the respective Note(s). The
terms of each Note hereto are subject to all conditions and provisions of this
Security Agreement as it may at any time be amended. Each Note shall constitute
a separate and independent Loan and contractual obligation of Borrower and shall
incorporate the terms and conditions of this Security Agreement and any
additional provisions contained in such Note. In the event of a conflict between
the terms and conditions of this Security Agreement and any provisions of such
Note, the provisions of such Note shall prevail with respect to such Note only.

SECTION 2. NON-CANCELABLE LOAN. This Security Agreement and each Note cannot be
canceled or terminated except as expressly provided herein. Borrower agrees that
its obligations to pay all monthly payment amounts and other sums payable
hereunder (and under any Note) and the rights of Lender and any assignee in and
to such monthly payment amounts and other sums, are absolute and unconditional
and are not subject to any abatement, reduction, setoff, defense, counterclaim
or recoupment due or alleged to be due to, or by reason of, any past, present or
future claims which Borrower may have against Lender, any assignee, the
manufacturer or seller of the Collateral, or against any person for any reason
whatsoever.

SECTION 3. LENDER COMMITMENT. (a) General Terms. Subject to the terms and
conditions of this Security Agreement, Lender hereby agrees to make one or more
senior secured Loans to Borrower, subject to the following conditions: (i) each
Loan shall be evidenced by a Note; (ii) the total principal amount of the Loans
shall not exceed $3,000,000 in the aggregate (the "Commitment"); (iii) at the
time of each Loan, no Event of Default or event which with the giving of notice
or passage of time, or both, could become an Event of Default shall have
occurred, as reasonably determined by Lender, and certified by Borrower; (iv) at
the time of each Loan, Borrower has reimbursed Lender for all UCC filing costs,
inspection and labeling costs, and appraisal fees, if any; (v) for each Loan,
Borrower shall present to

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Lender a list of proposed Collateral for approval by Lender in its sole
discretion; (vi) for each Loan, Borrower shall have provided Lender with each of
the closing documents described in Exhibit B hereto (which documents shall be in
form and substance reasonably acceptable to Lender); (vii) there shall be no
material adverse change in Borrower's condition, financial or otherwise, that
would materially impair the ability of Borrower to meet its payment and other
obligations under this Loan (a "Material Adverse Effect") as reasonably
determined by Lender, and Borrower so certifies, from (yy) the date of the most
recent financial statements delivered by Borrower to Lender to (zz) the date of
the proposed Loan; (viii) Borrower shall use the proceeds of all Loans hereunder
to purchase or reimburse the purchase of Collateral; (ix) prior to each funding
Lender has confirmed that Borrower's financial condition is satisfactory to
Lender; and (x) Lender has received in form and substance acceptable to Lender:
(a) Borrower's interim financial statements signed by a financial officer of
Borrower, (b) Borrower's business plan and/or projections as may be amended from
time to time; and (c) complete copies of the Borrower's audit reports for its
most recent fiscal year, which shall include at least Borrower's balance sheet
as of the close of such year, and Borrower's statement of income and retained
earnings and of changes in financial position for such year, prepared on a
consolidated basis and certified by independent public accountants. Such
certificate shall not be qualified or limited because of restricted or limited
examination by such accountant of any material portion of the Borrower's
records. Such reports shall be prepared in accordance with generally accepted
accounting principles and practices consistently applied.

      (b)   The Notes. Each Loan shall be evidenced by a Note. Each Note shall
bear interest and be payable at the times and in the manner provided therein.
Following payment of the Indebtedness related to each Note, Lender shall return
such Note, marked "cancelled," to Borrower. Borrower has the ability to prepay
all, but not fewer than all, outstanding Notes in whole but not in part. The
prepayment amount shall be the remaining Note Balance shown on the GAAP
Accounting for RESOURCE/PHOENIX, INC., Note 1 plus 20% of the original principal
amount of each outstanding Note calculated in accordance with End of Loan
Position Section 29. The prepayment conditions are as follows: (a) Borrower must
provide Lender with at least five (5) days' advance written notice of its
intention to prepay; and (b) the prepayment date must fall on a regular monthly
payment date.

SECTION 4. SECURITY INTERESTS. (a) Borrower hereby grants to Lender a first
security interest in all Collateral; (b) This Security Agreement secures (i) the
payment of the principal of and interest on the Notes and all other sums due
thereunder and under this Security Agreement (the "Indebtedness") and (ii) the
performance by Borrower of all of its other covenants now or hereafter existing
under the Notes, this Security Agreement and any other obligation owed by
Borrower to Lender (the "Obligations").

SECTION 5. BORROWER'S REPRESENTATIONS AND WARRANTIES. Borrower represents and
warrants that (a) it is in good standing under the laws of the state of its
formation, duly qualified to do business and will remain duly qualified during
the term of each Loan in each state where necessary to carry on its present
business and operations, including the jurisdiction(s) where the Collateral will
be located as specified on each Exhibit A to each Note, except where failure to
be so qualified would not have a Material Adverse Effect; (b) it has full
authority to execute and deliver this Security Agreement and the Notes and
perform the terms hereof and thereof, and this Security Agreement and the Notes
have been duly authorized, executed and delivered and constitute valid and
binding obligations of Borrower enforceable in accordance with their terms; (c)
the execution and delivery of this Security Agreement and the Notes will not
contravene any law, regulation or judgment affecting Borrower or result in any
breach of any material agreement or other instrument binding on Borrower; (d) no
consent of Borrower's shareholders or holder of any indebtedness, or filing
with, or approval of, any governmental agency or commission, which has not
already been obtained or performed, as appropriate, is a condition to the
performance of the terms of this Security Agreement or the Notes; (e) there is
no action or proceeding

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pending or threatened against Borrower before any court or administrative agency
which might have a Material Adverse Effect on the business, financial condition
or operations of Borrower; (f) at the time any Loan is made hereunder, Borrower
owns and will keep all of the Collateral free and clear of all liens, claims and
encumbrances, and, except for this Security Agreement, there is no deed of
trust, mortgage, security agreement or other third party interest against any of
the Collateral other than Permitted Liens (as defined below); (g) at the time
any Loan is made hereunder, Borrower has good and marketable title to the
Collateral; (h) at the time any Loan is made hereunder, all Collateral has been
received, installed and is ready for use and is satisfactory in all respects for
the purposes of this Security Agreement; (i) the Collateral is, and will remain
at all times under applicable law, removable personal property, which is free
and clear of any lien or encumbrance except in favor of Lender other than
Permitted Liens (as defined below), notwithstanding the manner in which the
Collateral may be attached to any real property; (j) all credit and financial
information submitted to Lender herewith or at any other time is and will at the
time given be true and correct in all material respects; and (k) the security
interest granted to Lender hereunder is a first priority security interest, and
(l) on or before January 1, 2000, Borrower's computer system shall be Year 2000
performance compliant and will thus be able to accurately process date data
from, into and between the twentieth and twenty-first centuries including leap
year calculations. "Permitted Liens" shall mean and include: (i) liens for taxes
or other governmental charges not at the time delinquent or thereafter payable
without penalty or being contested in good faith; and (ii) liens of carriers,
warehousemen, mechanics, materialmen, vendors, landlords and other liens arising
by operation of law incurred in the ordinary course of business.

SECTION 6. METHOD AND PLACE OF PAYMENT. Borrower shall pay to Lender, at such
address as Lender specifies in writing, all amounts payable to it under this
Security Agreement and the Notes.

SECTION 7. LOCATION; INSPECTION; LABELS. All of the Collateral shall be located
at the address (the "Collateral Location") shown on Exhibit A to each Note and
shall not be moved without Lender's prior written consent which location shall
in all events be within the United States. All of the records regarding the
Collateral shall be located at 2401 Kerner Boulevard, San Rafael, California
94901, or such other location of which Borrower has given notice to Lender in
accordance with this Security Agreement. Lender shall have the right to inspect
Collateral, including records relating thereto, and Borrower's books and records
at any time (upon reasonable notification) during regular business hours, such
books and records to be maintained in accordance with generally accepted
accounting principles. Borrower shall be responsible for all labor, material and
freight charges incurred in connection with any removal or relocation of
Collateral which is requested by Borrower and consented to by Lender, as well as
for any charges due to the installation or moving of the Collateral. Payments
under the Notes and under this Security Agreement shall continue during any
period in which the Collateral is in transit during a relocation. During
Borrower's regular business hours and upon at least two days' notice to
Borrower, Lender or its agent shall mark and label Collateral, which labels (to
be provided by Lender) shall state that such Collateral is subject to a security
interest of Lender, and Borrower shall keep such labels on the Collateral as so
labeled.

SECTION 8. COLLATERAL MAINTENANCE. (a) General. Upon reasonable notice, Borrower
will permit Lender to inspect each item of Collateral and its maintenance
records during Borrower's regular business hours. Borrower will at its sole
expense comply with all applicable laws, rules, regulations, requirements and
orders with respect to the use, maintenance, repair, condition, storage and
operation of each item of Collateral. Any addition or improvement that is so
required or cannot be so removed will immediately become Collateral of Lender.
(b) Service and Repair. Borrower will at its sole expense maintain and service
and repair any damage to each item of Collateral in a manner consistent

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with prudent industry practice and Borrower's own practice so that such item of
Collateral is at all times (i) in the same condition as when delivered to
Borrower, except for ordinary wear and tear, and (ii) in good operating order
for the function intended by its manufacturer's warranties and recommendations.

SECTION 9. LOSS OR DAMAGE. Borrower assumes the entire risk of loss to the
Collateral through use, operation or otherwise. Borrower hereby indemnifies and
holds harmless Lender from and against all claims, loss of Loan payments, costs,
damages, and expenses relating to or resulting from any loss, damage or
destruction of the Collateral, any such occurrence being hereinafter called a
"Casualty Occurrence." Notwithstanding any Casualty Occurrence, the Loan to
which such casualtied item of Collateral is subject shall continue in full force
and effect without any abatement in the monthly payment due. Borrower shall, at
its election, (a) no later than thirty (30) days after such Casualty Occurrence
repair the Collateral returning it to good operating condition, (b) no later
than thirty (30) days after such Casualty Occurrence replace the Collateral with
Collateral acceptable to Lender in its reasonable discretion, in good condition
and repair taking all steps required by Lender to perfect Lender's first
priority security interest therein, which replacement Collateral shall be
subject to the terms of this Security Agreement, or (c) on the next regular
monthly payment date which falls after such thirty (30) days, or if there is no
such payment date, thirty (30) days after such Casualty Occurrence pay to Lender
an amount equal to the Balance Due (as defined below) for each lost or damaged
item of Collateral. The Balance Due for each such item is the sum of: (i) all
amounts for each item which may be then due or accrued to the payment date, plus
(ii) as of such payment date, an amount equal to the product of the fraction
specified below times the sum of all remaining payments under the respective
Note, including the amount of any mandatory or optional payment required or
permitted to be paid by Borrower to Lender at the maturity of the Note
discounting to present value the amounts in (ii) at a rate of 6% per annum
compounded monthly on the basis of a 360 day year ("Discount Rate"). The
numerator of the fraction shall be the collateral value (as set forth on the
applicable Note) of the item and the denominator shall be the aggregate
collateral value of all items under the Note. Upon the making of such payments,
Lender shall release such item of Collateral from its lien hereunder.

SECTION 10. INSURANCE. Borrower at its expense shall keep the Collateral insured
against all risks of physical loss for at least the replacement value of the
Collateral and in no event for less than the amount payable following a Casualty
Occurrence (as provided in Section 9). Such insurance shall provide for a loss
payable endorsement to Lender and/or any assignee of Lender. Borrower shall
maintain commercial general liability insurance, including products liability
and completed operations coverage, with respect to loss or damage for personal
injury, death or property damage in an amount not less than $2,000,000 in the
aggregate, naming Lender and/or Lender's assignee as additional insured. Such
insurance shall contain insurer's agreement to give thirty (30) days' advance
written notice to Lender before cancellation or material change of any policy of
insurance. Borrower will provide Lender and any assignee of Lender with a
certificate of insurance from the insurer evidencing Lender's or such assignee's
interest in the policy of insurance. Such insurance shall cover any Casualty
Occurrence to any unit of Collateral. Notwithstanding anything in Section 9 or
this Section 10 to the contrary, this Security Agreement and Borrower's
obligations hereunder shall remain in full force and effect with respect to any
unit of Collateral which is not subject to a Casualty Occurrence. If Borrower
fails to provide or maintain insurance as required herein, Lender shall have the
right, but shall not be obligated, to obtain such insurance. In that event,
Borrower shall pay to Lender the cost thereof.

SECTION 11. MISCELLANEOUS AFFIRMATIVE COVENANTS. So long as any portion of the
Indebtedness is unpaid and as long as any of the Obligations are outstanding
Borrower will: (a) duly pay all governmental taxes and assessments at the time
they become due and payable; provided, however, Borrower may contest the same in
good faith so long as no payment default by Borrower has occurred

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and is continuing; (b) comply with all applicable material governmental laws,
rules and regulations relating to its business and the Collateral where a
failure to comply would have a Material Adverse Effect; (c) take no action to
adversely affect Lender's security interest in the Collateral as a first and
prior perfected security interest; (d) furnish Lender with its annual audited
financial statements within ninety (90) days following the end of Borrower's
fiscal year, unaudited quarterly financial statements within forty-five (45)
days after the end of each fiscal quarter, and within thirty (30) days of the
end of each month a financial statement for that month prepared by Borrower, and
including an income statement and balance sheet, all of which shall be certified
by an officer of Borrower as true and correct and shall be prepared in
accordance with generally accepted accounting principles consistently applied,
and such other information as Lender may reasonably request; and (e) promptly
(but in no event more than five (5) days after the occurrence of such event)
notify Lender of any change in Borrower's condition during the commitment period
which constitutes a Material Adverse Effect, and of the occurrence of any Event
of Default.

SECTION 12. INDEMNITIES. Borrower will protect, indemnify and save harmless
Lender and any assignees from and against all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including reasonable
attorneys' fees and expenses), imposed upon or incurred by or asserted against
Lender or any assignee of Lender by Borrower or any third party by reason of the
occurrence or existence (or alleged occurrence or existence) of any act or event
relating to or caused by any portion of the Collateral, or its purchase,
acceptance, possession, use, maintenance or transportation, including without
limitation, consequential or special damages of any kind, any failure on the
part of Borrower to perform or comply with any of the terms of this Security
Agreement or any Note, claims for latent or other defects, claims for patent,
trademark or copyright infringement and claims for personal injury, death or
property damage, including those based on Lender's negligence or strict
liability in tort and excluding only those based on Lender's gross negligence or
willful misconduct. In the event that any action, suit or proceeding is brought
against Lender by reason of any such occurrence, Borrower, upon Lender's
request, will, at Borrower's expense, resist and defend such action, suit or
proceeding or cause the same to be resisted and defended by counsel designated
and approved by Lender. Borrower's obligations under this Section 12 shall
survive the payment in full of all the Indebtedness and the performance of all
Obligations with respect to acts or events occurring or alleged to have occurred
prior to the payment in full of all the Indebtedness and the performance of all
Obligations.

SECTION 13. TAXES. Borrower agrees to reimburse Lender (or pay directly if
instructed by Lender) and any assignee of Lender for, and to indemnify and hold
Lender and any assignee harmless from, all fees (including, but not limited to,
license, documentation, recording and registration fees), and all sales, use,
gross receipts, personal property, occupational, value added or other taxes,
levies, imposts, duties, assessments, charges, or withholdings of any nature
whatsoever, together with any penalties, fines, additions to tax, or interest
thereon (the foregoing collectively "Impositions"), except same as may be
attributable to Lender's income, arising at any time prior to or during the term
of any Notes or of this Security Agreement, or upon termination or early
termination of this Security Agreement and levied or imposed upon Lender
directly or otherwise by any Federal, state or local government in the United
States or by any foreign country or foreign or international taxing authority
upon or with respect to (a) the Collateral, (b) the exportation, importation,
registration, purchase, ownership, delivery, leasing, financing, possession,
use, operation, storage, maintenance, repair, return, sale, transfer of title,
or other disposition thereof, (c) the rentals, receipts, or earnings arising
from the Collateral, or any disposition of the rights to such rentals, receipts,
or earnings, (d) any payment pursuant to this Security Agreement or the Notes,
or (e) this Security Agreement, the Notes or any transaction or any part hereof
or thereof.

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SECTION 14. RELEASE OF LIENS. Upon payment of all of the Indebtedness and
performance of all of the Obligations, Lender shall execute UCC termination
statements and such other documents as Borrower shall reasonably request to
evidence the release of Lender's lien relating to the Collateral.

SECTION 15. ASSIGNMENT. WITHOUT LENDER'S PRIOR WRITTEN CONSENT WHICH CONSENT
WILL NOT BE UNREASONABLY WITHHELD OR DELAYED, BORROWER SHALL NOT (a) ASSIGN,
TRANSFER, PLEDGE, HYPOTHECATE OR OTHERWISE DISPOSE OF THIS SECURITY AGREEMENT,
ANY NOTE, ANY COLLATERAL, OR ANY INTEREST THEREIN, (b) LEASE OR LEND COLLATERAL
OR PERMIT IT TO BE USED BY ANYONE OTHER THAN BORROWER OR BORROWER'S EMPLOYEES,
CONTRACTORS AND AGENTS OR (c) MERGE INTO, CONSOLIDATE WITH OR CONVEY OR TRANSFER
ITS PROPERTIES SUBSTANTIALLY AS AN ENTIRETY TO ANY OTHER PERSON OR ENTITY.
LENDER MAY ASSIGN ANY OF THE NOTES, THIS SECURITY AGREEMENT OR ITS SECURITY
INTEREST IN ANY OR ALL COLLATERAL, OR ANY OR ALL OF THE ABOVE, IN WHOLE OR IN
PART TO ONE OR MORE ASSIGNEES OR SECURED PARTIES WITHOUT NOTICE TO BORROWER. If
Borrower is given notice of such assignment it agrees to acknowledge receipt
thereof in writing and Borrower shall execute such additional documentation as
Lender's assignee and/or secured party shall reasonably require at Lender's
expense. Each such assignee and/or secured party shall have all of the rights,
but (except as provided in this Section 15) none of the obligations, of Lender
under this Security Agreement, unless such assignee or secured party expressly
agrees to assume such obligations in writing. Borrower shall not assert against
any assignee and/or secured party any defense, counterclaim or offset that
Borrower may have against Lender. Notwithstanding any such assignment, and
providing no Event of Default has occurred and is continuing, Lender, or its
assignees, secured parties, or their agents or assigns, shall not interfere with
Borrower's right to quietly enjoy use of Collateral subject to the terms and
conditions of this Security Agreement. Subject to the foregoing, the Notes and
this Security Agreement shall inure to the benefit of, and are binding upon, the
successors and assignees of the parties hereto. Borrower acknowledges that any
such assignment by Lender will not change Borrower's duties or obligations under
this Security Agreement and the Notes or increase any burden or risk on
Borrower.

SECTION 16. DEFAULT. (a) Events of Default. Any of the following events or
conditions shall constitute an "Event of Default" hereunder: (i) Borrower's
failure to pay any monies due to Lender hereunder or under any Note beyond the
tenth (10th) day after the same is due; (ii) Borrower's failure to comply with
its obligations under Section 10 or Section 15; (iii) any representation or
warranty of Borrower made in this Security Agreement or the Notes or in any
other agreement, statement or certificate furnished to Lender in connection with
this Security Agreement or the Notes shall prove to have been incorrect in any
material respect when made or given; (iv) Borrower's failure to comply with or
perform any material term, covenant or condition of this Security Agreement or
any Note or under any other agreement between Borrower and Lender or under any
lease or mortgage of real property covering the location of the Collateral if
such failure to comply or perform is not cured by Borrower within thirty (30)
days after Borrower knows of the noncompliance or nonperformance or notice from
Lender or such longer period that Borrower is diligently attempting to effect
such cure; (v) seizure of any of the Collateral under legal process; (vi) the
filing by or against Borrower or any guarantor under any guaranty executed in
connection with this Security Agreement ("Guarantor") of a petition for
reorganization or liquidation under the Bankruptcy Code or any amendment thereto
or under any other insolvency law providing for the relief of debtors; (vii) the
voluntary or involuntary making of an assignment of a substantial portion of its
assets by Borrower or by any Guarantor for the benefit of its creditors, the
appointment of a receiver or trustee for Borrower or any Guarantor or for any of
Borrower's or Guarantor's assets, the institution by or against Borrower or any
Guarantor of any formal or informal proceeding for dissolution, liquidation,
settlement of claims against or winding up of the affairs of

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Borrower or any Guarantor provided that in the case of all such involuntary
proceedings, same are not dismissed within sixty (60) days after commencement;
(viii) the making by Borrower or by any Guarantor of a transfer of all or a
material portion of Borrower's or Guarantor's assets or inventory not in the
ordinary course of business; or (ix) any default or breach by any Guarantor of
any of the terms of its guaranty to Lender in connection with this Security
Agreement.

      (b)   Remedies. If any Event of Default has occurred, Lender may in its
sole discretion exercise one or more of the following remedies with respect to
any or all of the Collateral: (i) declare due any or all of the aggregate sum of
all remaining payments under the Notes, including the amount of any mandatory or
optional payment required or permitted to be paid by Borrower to Lender at the
maturity of the Notes ("Remaining Payments"); (ii) proceed by appropriate court
action or actions either at law or in equity to enforce Borrower's performance
of the applicable covenants of the Notes and this Security Agreement or to
recover all damages and expenses incurred by Lender by reason of an Event of
Default; (iii) except as provided by law, without court order or prior demand,
enter upon the premises where the Collateral is located and take immediate
possession of and remove it without liability of Lender to Borrower or any other
person or entity; (iv) terminate this Security Agreement and sell the Collateral
at public or private sale, or otherwise dispose of, hold, use or lease any or
all of the Collateral in a commercially reasonable manner; or (v) exercise any
other right or remedy available to it under applicable law. If Lender has
declared due any or all of the Remaining Payments, Borrower will pay immediately
to Lender, without duplication, (A) the Remaining Payments discounted to present
value at the Discount Rate, (B) all amounts which may be then due or accrued,
and (C) all other amounts due under this Security Agreement and under the Notes
(Lender's Return, as referred to below, means the amounts described in clauses
(A), (B) and (C) above). The net proceeds of any sale or lease of such
Collateral will be credited against Lender's Return. The net proceeds of a sale
of the Collateral pursuant to this Section 16(b) is defined as the sales price
of the Collateral less selling expenses, including, without limitation, costs of
remarketing the Collateral and all refurbishing costs and commissions paid with
respect to such remarketing. The net proceeds of a lease of the Collateral
pursuant to this Section 16(b) is defined as the amount equal to the monthly
payments due under such lease (discounted to present value at the Discount Rate)
plus the residual value of the Collateral at the end of the basic term of such
lease, as reasonably determined by Lender, and discounted at the Discount Rate.

At Lender's request, Borrower shall assemble the Collateral and make it
available to Lender at such time and location as Lender may reasonably
designate. Borrower waives any right it may have to redeem the Collateral.

Declaration that any or all amounts under this Security Agreement and/or the
Notes are immediately due and payable and Lender's taking possession of any or
all Collateral shall not terminate this Security Agreement or any of the Notes
unless Lender so notifies Borrower in writing. None of the above remedies is
intended to be exclusive but each is cumulative and may be enforced separately
or concurrently.

      (c)   Application of Proceeds. The proceeds of any sale of all or any part
of the Collateral and the proceeds of any remedy afforded to Lender by this
Security Agreement shall be paid to and applied as follows:

            First, to the payment of reasonable costs and expenses of suit or
foreclosure, if any, and of the sale, if any, including, without limitation,
refurbishing costs, costs of remarketing and commissions related to remarketing,
all Remedy Expenses, all expenses, liabilities and advances incurred or made
pursuant to this Security Agreement or any Note by Lender in connection with
foreclosure, suit,

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sale or enforcement of this Security Agreement or the Notes, and taxes,
assessments or liens superior to Lender's security interest granted by this
Security Agreement;

            Second, to the payment of all other amounts not described in item
Third below due under this Security Agreement and all Notes;

            Third, to pay Lender an amount equal to Lender's Return, to the
extent not previously paid by Borrower; and

            Fourth, to the payment of any surplus to Borrower or to whomever may
lawfully be entitled to receive it.

      (d)   Effect of Delay; Waiver; Foreclosure on Collateral. No delay or
omission of Lender, in exercising any right or power arising from any Event of
Default shall prevent Lender from exercising that right or power if the Event of
Default continues. No waiver of an Event of Default, whether full or partial, by
Lender or such holder shall be taken to extend to any subsequent Event of
Default, or to impair the rights of Lender in respect of any damages suffered as
a result of the Event of Default. The giving, taking or enforcement of any other
or additional security, collateral or guaranty for the payment or discharge of
the Indebtedness and performance of the Obligations shall in no way operate to
prejudice, waive or affect the security interest created by this Security
Agreement or any rights, powers or remedies exercised hereunder or thereunder.
Lender shall not be required first to foreclose on the Collateral prior to
bringing an action against Borrower for sums owed to Lender under this Security
Agreement or under any Note.

SECTION 17. LATE PAYMENTS. Borrower shall pay Lender a late charge of 5% of any
payment owed Lender by Borrower which is not paid when due (taking into account
applicable grace periods), for every month such payment is not paid when due. If
such amounts have not been received by Lender at Lender's place of business or
by Lender's designated agent by the date such amounts are due under this
Security Agreement or the Notes, Lender shall bill Borrower for such charges.
Borrower acknowledges that invoices for amounts due hereunder or under the Notes
are sent by Lender for Borrower's convenience only. Borrower's non-receipt of an
invoice will not relieve Borrower of its obligation to make payments hereunder
or under the Notes.

SECTION 18. PAYMENTS BY LENDER. If Borrower shall fail to make any payment or
perform any act required hereunder (including, but not limited to, maintenance
of any insurance required by Section 10), then Lender may, but shall not be
required to, after such notice to Borrower as is reasonable under the
circumstances, make such payment or perform such act with the same effect as if
made or performed by Borrower. Borrower will upon demand reimburse Lender for
all sums paid and all reasonable costs and expenses incurred in connection with
the performance of any such act.

SECTION 19. FINANCING STATEMENTS. Borrower hereby appoints Lender (and each of
Lender's officers, employees or agents designated by Lender) with full power of
substitution by Lender, as Borrower's attorney, with power to execute and
deliver on Borrower's behalf, financing statements and other documents necessary
to perfect and/or give notice of Lender's security interest in any of the
Collateral. Notwithstanding the above, Borrower will, upon Lender's request,
execute all financing statements pursuant to the Uniform Commercial Code and all
such other documents reasonably requested by Lender to perfect Lender's security
interests hereunder. Borrower authorizes Lender to file financing statements
signed only by Lender (where such authorization is permitted by law) at all
places where Lender deems necessary.

                                       8
<PAGE>   9

SECTION 20. NATURE OF TRANSACTION. Lender makes no representation whatsoever,
express or implied, concerning the legal character of the transaction evidenced
hereby, for tax or any other purpose.

SECTION 21. SUSPENSION OF LENDER'S OBLIGATIONS. The obligations of Lender
hereunder will be suspended to the extent that Lender is hindered or prevented
from complying therewith because of labor disturbances, including but not
limited to strikes and lockouts, acts of God, fires, floods, storms, accidents,
industrial unrest, acts of war, insurrection, riot or civil disorder, any order,
decree, law or governmental regulations or interference, failure of the
manufacturer to deliver any item of Collateral or any cause whatsoever not
within the sole and exclusive control of Lender.

SECTION 22. LENDER'S EXPENSE. Borrower shall pay Lender all reasonable costs and
expenses including reasonable attorney's fees, litigation expenses and the fees
of collection agencies, incurred by Lender (a) in enforcing any of the terms,
conditions or provisions hereof and related to the exercise of its remedies
("Remedy Expenses"), and (b) in connection with any bankruptcy or post-judgment
proceeding, whether or not suit is filed and, in each and every action, suit or
proceeding, including any and all appeals and petitions therefrom.

SECTION 23. ALTERATIONS; ATTACHMENTS. No alterations or attachments shall be
made to the Collateral without Lender's prior written consent, which shall not
be given for changes that will adversely affect the reliability and utility of
the Collateral or which cannot be removed without damage to the Collateral, or
which in any way decrease the value of the Collateral for purposes of resale or
lease. All attachments and improvements to the Collateral shall be deemed to be
"Collateral" for purposes of the Security Agreement, and a first priority
security interest therein shall immediately vest in Lender.

SECTION 24. CHATTEL PAPER. (a) One executed copy of the Security Agreement will
be marked "Original" and all other counterparts will be duplicates. To the
extent, if any, that this Security Agreement constitutes chattel paper (as such
term is defined in the Uniform Commercial Code as in effect in any applicable
jurisdiction) no security interest in the Security Agreement may be created in
any documents other than the "Original." (b) There shall be only one original of
each Note and it shall be marked "Original," and all other counterparts will be
duplicates. To the extent, if any, that any Notes to this Security Agreement
constitutes chattel paper (or as such term is defined in the Uniform Commercial
Code as in effect in any applicable jurisdiction) no security interest in any
Note(s) may be created in any documents other than the "Original."

SECTION 25. STOCK WARRANT. Borrower agrees that it will issue to Lender upon
execution of this Security Agreement a Warrant in the form of the Warrant
Agreement attached hereto as Exhibit C.

SECTION 26. NOTICES. All notices hereunder shall be in writing, by registered
mail, or reliable messenger or delivery service (including overnight service)
and shall be directed, as the case may be, to Lender at 2401 Kerner Boulevard,
San Rafael, California 94901, Attention: Gus Constantin, President and to
Borrower at 2401 Kerner Boulevard, San Rafael, California 94901, Attention:
Gregory Thornton, Chief Financial Officer, or at such other address as the
parties may notify one another of in writing from time to time.

SECTION 27. MISCELLANEOUS. (a) Borrower shall provide Lender with such corporate
resolutions, financial statements and other documents as Lender shall reasonably
request from time to time. (b) Borrower represents that the Collateral hereunder
is used solely for business purposes. (c)

                                       9
<PAGE>   10

Time is of the essence with respect to this Security Agreement. (d) Borrower
acknowledges that Borrower has read this Security Agreement and the Notes,
understands them and agrees to be bound by their terms and further agrees that
this Security Agreement and the Notes constitute the entire agreement between
Lender and Borrower with respect to the subject matter hereof and supersede all
previous agreements, promises, or representations. (e) This Security Agreement
and the Notes may not be changed, altered or modified except by an instrument
signed by an officer or authorized representative of Lender and Borrower. (f)
Any failure of Lender to require strict performance by Borrower or any waiver by
Lender of any provision herein or in a Note shall not be construed as a consent
or waiver of any other breach of the same or any other provision. (g) If any
provision of this Security Agreement or any Note is held invalid, such
invalidity shall not affect any other provisions hereof or thereof. (h) The
obligations of Borrower to pay the Indebtedness and perform the Obligations
shall survive the expiration or earlier termination of this Security Agreement
and each Note until all Obligations of Borrower to Lender have been met and all
liabilities of Borrower to Lender and any assignee have been paid in full. (i)
Borrower will notify Lender at least 30 days before changing its name, principal
place of business or chief executive office. (j) Borrower will, at its expense,
promptly execute and deliver to Lender such documents and assurances (including
financing statements) and take such further action as Lender may reasonably
request in order to carry out the intent of this Security Agreement and Lender's
rights and remedies.

SECTION 28. JURISDICTION AND WAIVER OF JURY TRIAL. This Security Agreement and
each Note shall be deemed to have been made under and shall be governed by the
laws of the State of California in all respects, including matters of
construction, validity and performance. At Lender's sole discretion, option and
election, jurisdiction and venue for any legal action between the parties
arising out of or relating to this Security Agreement or any Note shall be in
the Superior Court of Marin County, California, or, in cases where federal
diversity jurisdiction is available, in the United States District Court for the
Northern District of California located in San Francisco, California. BORROWER,
TO THE EXTENT IT MAY LAWFULLY DO SO, HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN
ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS SECURITY AGREEMENT, ANY NOTE, ANY
SECURITY DOCUMENTS, OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH.

SECTION 29. END OF LOAN POSITION. (a) General. At the expiration of the term of
the first Note, Borrower shall make a final payment equal to 20% of the Note's
original principle amount, ("End of Loan Position"). This requirement shall be
Borrower's End of Loan Position with respect to all Notes under the Security
Agreement.

In the event Borrower retains possession of the Collateral after the end of the
term of any Note and does not make the payment specified above, all obligations
of Borrower under the Security Agreement, including payments at the current
rate, shall remain in full force and effect during such holdover period until
the earlier of such time as Borrower makes its final payment as set forth herein
above or Lender exercises its remedies pursuant to Section 16 of the Security
Agreement.

IN WITNESS WHEREOF, Borrower and Lender have caused this Security Agreement to
be executed as of the date and year first above written.

LEASE MANAGEMENT ASSOCIATES, INC.         RESOURCE/PHOENIX, INC.

By: /s/ Gus Constantin                    By: /s/ Lisa Olsen
   ----------------------------------        ----------------------------------

                                       10
<PAGE>   11

Name: Gus Constantin                      Name (Print): Lisa Olsen
     --------------------------------                  ------------------------

Title: President                          Title: Vice President & Chief
       ------------------------------            Financial Officer
                                                -------------------------------

                                          HEADQUARTERS LOCATION:
                                          2401 Kerner Blvd.
                                          San Rafael, CA 94901
                                          County of Marin

                                          EXHIBITS AND SCHEDULES
                                          Exhibit A -- Collateral Description
                                          Exhibit B -- Closing Memorandum
                                          Exhibit C -- Stock Warrant

                                       11
<PAGE>   12

                                    NOTE NO. 01
                                    TO SENIOR LOAN AND SECURITY AGREEMENT
                                    NO. 4673
                                    DATED AS OF JUNE 23, 2000
                                    BETWEEN RESOURCE/PHOENIX, INC.
                                    AS BORROWER AND
                                    LEASE MANAGEMENT ASSOCIATES, INC. AS LENDER

                         SENIOR SECURED PROMISSORY NOTE

$3,000,000.00                                                     June 23, 2000

FOR VALUE RECEIVED, the undersigned, RESOURCE/PHOENIX, INC., a California
corporation ("Borrower"), hereby promises to pay to the order of LEASE
MANAGEMENT ASSOCIATES, INC., or its assigns (the "Lender") the principal sum of
Three Million Dollars ($3.000.000.00), together with interest thereon until the
principal is fully repaid. Principal and interest shall be payable in
consecutive monthly installments, each of which shall be equal to the percentage
specified below of the principal sum and in the amounts each month specified
below.

<TABLE>
<CAPTION>
      Month                  Payment Amount                    Percentage
      -----                  --------------                    ----------
<S>                          <C>                               <C>
      1-36                     $90,000.00                        3.000%
</TABLE>

The first monthly payment shall be due immediately prior to the date of this
Note. An interim payment will be due on the first day of the month immediately
following the date of this Note (unless the date of this Note is the first day
of the month in which case no interim payment is due on that day), for the
period from (and including) the date Lender funds the principal amount of this
Note until (but not including) the first day of the following month and shall be
equal to 1/30th of the monthly payment multiplied by the number of days, if any,
between (and including) the funding date and the first day of the following
month. The second monthly payment shall be due on the first day of the second
month following the date of this Note and each succeeding payment shall be made
on the first day of each succeeding month.

Borrower's End of Loan Position payment shall be due on the first day of the
thirty-seventh (37th) month as provided below:

(a)   General. At the expiration of the term of the first Note, Borrower shall
make a final payment equal to 20% of the Note's original principal amount, ("End
of Loan Position"). This requirement shall be Borrower's End of Loan Position
with respect to all Notes under the Security Agreement.

Borrower has the ability to prepay all, but not fewer than all, outstanding
Notes in whole but not in part. The prepayment amount shall be the remaining
Note Balance shown on the GAAP Accounting for RESOURCE/PHOENIX, INC. plus 20% of
the original principal amount of each outstanding Note calculated in accordance
with Section 29. The prepayment conditions are as follows: (a) Borrower must
provide Lender with at least five (5) days' advance written notice of its
intention to prepay; and (b) the prepayment date must fall on a regular monthly
payment date.

                                        1
<PAGE>   13

                                    NOTE NO. 01
                                    TO SENIOR LOAN AND SECURITY AGREEMENT
                                    NO. 4673
                                    DATED AS OF JUNE 23, 2000
                                    BETWEEN RESOURCE/PHOENIX, INC.
                                    AS BORROWER AND
                                    LEASE MANAGEMENT ASSOCIATES, INC. AS LENDER

Borrower shall pay Lender a late charge of 5% of any payment owed Lender by
Borrower which is not paid when due (taking into account applicable grace
periods), for every month such payment is not paid when due, but in no event an
amount greater than the highest rate permitted by applicable law.

Payments of principal and interest hereunder shall be made in lawful money of
the United States of America at the offices of Lender at 2401 Kerner Boulevard,
San Rafael, California 94901, or such other place as the Lender shall designate
to the Borrower in writing.

This Note is secured by a Senior Loan and Security Agreement, dated as of June
23, 2000 between Borrower and Lender (the "Security Agreement") and is entitled
to the benefits of the Security Agreement which contains, among other things,
provisions for (i) events of default and the Lender's rights and remedies
following an event of default (which include, but are not limited to,
acceleration of this Note), (ii) Collateral which secures the repayment of this
Note and is more particularly described on Exhibit A, and (iii) other rights and
remedies of Lender.

This Note may be declared due prior to its expressed maturity date only in the
events, on the terms and in the manner provided in the Security Agreement.

This Note shall be deemed to have been made under and shall be governed by the
laws of the State of California in all respects, including matters of
construction, validity and performance. At Lender's sole discretion, option and
election, jurisdiction and venue for any legal action between the parties
arising out of or relating to this Note shall be in the Superior Court of Marin
County, California, or, in cases where federal diversity jurisdiction is
available, in the United States District Court for the Northern District of
California located in San Francisco, California.

The Borrower hereby expressly waives presentment for payment, demand for
payment, notice of dishonor, protest, notice of protest, notice of nonpayment,
and all lack of diligence or delays in collection or enforcement of this Note.

                                          BORROWER:

                                          RESOURCE/PHOENIX, INC.

                                          By:
                                             ----------------------------------

                                          Name (Print):
                                                       ------------------------

                                          Title:
                                                -------------------------------

                                       2<PAGE>   1
                                                                   EXHIBIT 10.19

                               CONTINUING GUARANTY

THIS CONTINUING GUARANTY AGREEMENT ("Guaranty") is executed by
RESOURCEPHOENIX.COM, a Delaware corporation ("Guarantor"), in favor of LEASE
MANAGEMENT ASSOCIATES, INC., a Nevada corporation ("Lender"), at the request of
RESOURCE/PHOENIX, INC., a California corporation ("Borrower").

WHEREAS, Lender will make loans to Borrower secured by certain property which
may be personal property, real property or other items pursuant to a Senior Loan
and Security Agreement No. 4673 dated as of June 23, 2000, ("Security
Agreement") which term "Security Agreement" in this Guaranty includes any and
all promissory notes and other agreements now or hereafter executed by Borrower
in connection with the Security Agreement between Lender and Borrower.

WHEREAS, Guarantor acknowledges that Lender would not enter into the Security
Agreement or make any loans to Borrower pursuant thereto, unless Guarantor
enters into and delivers this Guaranty.

WHEREAS, it is of a business benefit to Guarantor that Lender make the loans
under the Security Agreement to Borrower.

NOW, THEREFORE, to induce Lender to enter into the Security Agreement with
Borrower, and in consideration of the benefits accruing from the Security
Agreement to Guarantor by virtue of its business relationship with Borrower and
for other good and valuable consideration, receipt of which is hereby
acknowledged, Guarantor agrees, subject to the Terms and Conditions of
Continuing Guaranty attached hereto and made a part hereof, (i) to guaranty the
full satisfaction and payment of Borrower's Obligations (as defined in such
Terms and Conditions) to Lender and (ii) to be liable for, and legally bound by,
all other terms, conditions, covenants and obligations set forth in such Terms
and Conditions.

IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty on the
date set forth below, and by such signature acknowledges and agrees that
Guarantor has read and is in agreement with the attached Terms and Conditions of
Continuing Guaranty.

DATED:  June 23, 2000
      -----------------------------------------

RESOURCEPHOENIX.COM ("Guarantor")

By:  /s/ Gregory Thornton
   --------------------------------------------

Title: Vice President & Chief Financial Officer
      -----------------------------------------

<PAGE>   2

TERMS AND CONDITIONS OF CONTINUING GUARANTY

1.    OBLIGATIONS DEFINED. The term "Obligations" is used throughout this
Guaranty in its most comprehensive sense and means and includes, without
limitation, any and all obligations and liabilities of any kind or nature owed
by Borrower to Lender pursuant to the Security Agreement and any financial or
other accommodations extended by Lender to Borrower, heretofore, now or
hereafter made, incurred or created, whether voluntary or involuntary and
however arising or evidenced, whether owed directly to Lender or acquired by
Lender through assignment, subrogation or succession, whether due or not due,
absolute or contingent, liquidated or unliquidated, determined or undetermined,
secured or unsecured, whether on original, renewed, extended or revised terms,
whether principal, interest or fees (including, but not limited to, those
changing the applicable rate of interest or which release any obligor with
respect to any Obligations, whether such indebtedness is from time to time
reduced or extinguished and thereafter increased or incurred), whether Borrower
may be individually or jointly liable with others, whether such obligations or
any portion thereof becomes barred by any statute of limitations and whether
such obligations may be or hereafter become unenforceable. If a petition under
the U.S. Bankruptcy Code is filed by or against Borrower, the term "Borrower"
shall also mean and include Borrower in its status as a "debtor" and
"debtor-in-possession" under the U.S. Bankruptcy Code.

2.    GUARANTOR OBLIGATIONS. Guarantor's liability hereunder shall be unlimited.
Guarantor absolutely and unconditionally guarantees and promises to perform, on
demand, without set-off or deduction, (a) the prompt payment when due, whether
upon maturity, acceleration or otherwise, of all amounts payable by Borrower
pursuant to the Security Agreement, the guaranty under this clause constituting
a guaranty of payment and not of collection; (b) the punctual performance by
Borrower of each and every duty, agreement, covenant or other Obligations of
Borrower under the Security Agreement; and (c) all other Obligations of Borrower
to Lender.

3.    GUARANTOR LIABILITIES. The liabilities of Guarantor are primary and
independent of the Obligations, and a separate action may be brought and
prosecuted against Guarantor whether such action is brought against Borrower or
any other guarantor or whether Borrower is joined in any such action. The
liability under this Guaranty is exclusive of liability under any other
guaranties executed by Guarantor for the benefit of Lender or any company
related to Lender.

4.    AUTHORIZATION OF GUARANTOR. Guarantor authorizes Lender, in its
discretion, without notice or demand and without impairing, discharging or
affecting its liability hereunder, from time to time, to:

      (a)   change the time or manner of payment of any Obligations by renewal,
compromise, extension, acceleration or otherwise;

      (b)   as provided for by the terms and conditions of the Security
Agreement or other documentation between Lender and Borrower, alter or change
any other provision of any Obligations, including the rate of interest thereon;

      (c)   release, substitute, or add one or more endorsers, co-signers,
guarantors, or other obligors with respect to any Obligations:

      (d)   obtain collateral for the payment of any Obligations or any guaranty
thereof;

      (e)   release, exchange, enforce, waive, substitute, or modify, in whole
or in part, existing or after-acquired collateral securing payment of the
Obligations or any guaranty therefor on such terms as Lender at its sole
discretion shall determine;

      (f)   apply any sums received from Borrower, any other guarantor, endorser
or co-signer or from the sale or collection of collateral or its proceeds to any
indebtedness whatsoever in any order and regardless of whether or not such
indebtedness is guaranteed hereby, is secured by collateral or is due and
payable;

      (g)   apply any sums received from Guarantor or from the sale of
collateral granted by Guarantor to any, all, or any portion of the Obligations
in any order regardless of whether the Obligations are secured by collateral or
are due and payable;

      (h)   accept partial payment on any Obligations;

      (i)   amend or modify the terms of any guaranty of the Obligations,
including the maximum liability thereunder;

      (j)   subordinate payment of all or any part of the Obligations to other
creditors of Borrower or other persons on such terms as Lender deems
appropriate; and

      (k)   exercise any right or remedy it may have with respect to any
Obligations or any collateral securing any Obligations, this Guaranty, or any
other guaranty (including, but not limited to, or, taking a deed or assignment
in lieu of foreclosure as to any collateral, purchasing at any sale of any such
collateral, and compromising, collecting, or otherwise liquidating any
collateral or any Obligations) without affecting or impairing in any way the
liability of Guarantor.

5.    GUARANTY ABSOLUTE; WAIVERS.

      (a)   Guarantor acknowledges that Guarantor may have certain rights under
applicable law which, if not waived by Guarantor, might provide Guarantor with
defenses against Guarantor's liability under this Guaranty. Among those rights,
are certain rights of subrogation, reimbursement, indemnification and
contribution, and rights provided in sections 2787 to 2855, inclusive, of the
California Civil Code. Guarantor waives all of Guarantor's rights of
subrogation, reimbursement, indemnification, and contribution, and any other
rights and defenses that are or may become available to Guarantor by reason of
any or all of California Civil Code sections

<PAGE>   3

2787 to 2855, inclusive, including, without limitation, Guarantor's rights:

      (i)    To require Lender to notify Guarantor of any default by Borrower,
provide Guarantor with notice of any sale or other disposition of security for
any Obligations, or disclose information with respect to the Obligations, the
Borrower, or any other guarantor, co-signer or endorser, or with respect to any
collateral;

      (ii)   That Guarantor's obligation under this Guaranty must be
commensurate with that of Borrower;

      (iii)  To be discharged based upon the absence of any liability of the
Borrower, at any time, by virtue of operation of law, or otherwise, or due to
any other disability or defense of Borrower or any other guarantor, endorser or
co-signer;

      (iv)   To be discharged if any of the terms, conditions or provisions of
the Obligations are altered in any respect;

      (v)    To be discharged upon acceptance by Lender of anything in partial
satisfaction of the Obligations, and/or if Lender designates the portion of the
Obligations to be satisfied;

      (vi)   To be discharged upon any modification of the Obligations or the
release by Lender of Borrower or any other guarantor, endorser or co-signer, or
if any remedies against any such person are suspended or impaired;

      (vii)  To require Lender to proceed against Borrower, or any other
guarantor, endorser, co-signer, or other person, or to pursue or refrain from
pursuing any other remedy in Lender's power;

      (viii) To receive the benefit of or participate in any and all security
for repayment and/or performance of the Obligations;

      (ix)   To have any security for the Obligations first applied to satisfy
or discharge the Obligations;

      (x)    That any arbitration award rendered against Borrower not constitute
an award against Guarantor;

      (xi)   To be discharged based upon any failure by Lender to perfect or
continue perfection of any lien, use due diligence to collect all or any
Obligations, or if recovery against Borrower becomes barred by any statute of
limitations, or if Borrower is not liable for any deficiency after Lender
realizes upon any collateral; and

      (xii)  To be discharged due to the release or discharge of any collateral
for any Obligations or guaranty, or relating to the validity, value or
enforceability of any collateral.

      (b)   Guarantor also waives all rights and defenses that Guarantor may
have because the Borrower's debt is secured by real property. This means, among
other things: (i) Lender may collect from Guarantor without first foreclosing on
any real or personal property collateral pledged by Borrower; (ii) If Lender
forecloses on any real property collateral pledged by the Borrower: (A) The
amount of the debt may be reduced only by the price for which that 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 foreclosing 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 debt is secured by
real property. These rights and defenses include, but are not limited to, any
rights or defenses directly or indirectly based upon Section 580a, 580b, 580d,
or 726 of the California Code of Civil Procedure.

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

      (d)   To the maximum extent permitted by law, Guarantor further waives any
and all rights to receive any notice of judicial or nonjudicial sale or
foreclosure of any real or personal property that may be the subject of any
security instrument or that may secure obligations of any other guarantor to
Lender, and Guarantor's failure to receive any such notice shall not impair or
affect Guarantor's liability. Notwithstanding any foreclosure of the lien of any
security instrument, with respect to the Obligations or any other guaranty,
whether by the exercise of the power of sale contained therein, by any action
for judicial foreclosure, or by any acceptance of a deed or other transfer in
lieu of foreclosure, whether or not such method of foreclosure or transfer in
lieu of foreclosure was for a consideration equal to or greater than the fair
market value of the security property, Guarantor shall remain bound under this
Guaranty for the Obligations of Borrower to Lender and shall be liable to Lender
for any and all of the Obligations remaining unpaid after any such foreclosure.

      (e)   If for any reason Borrower is under no legal obligation to discharge
any of the Obligations, or if any of the Obligations have become irrecoverable
from Borrower for any reason, this Guaranty shall nevertheless be binding on
Guarantor to the same extent as if the Guarantor at all times had been the
primary obligor on all such Obligations.

      (f)   In the event (i) Borrower defaults in the payment of any of the
Obligations or (ii) acceleration of the time for payment of any of the
Obligations is stayed upon the insolvency, bankruptcy or reorganization of the
Borrower, or for any other reason, all such amounts otherwise subject to
acceleration under the agreement evidencing such Obligations, shall be
immediately due and payable by Guarantor. Guarantor waives all presentments,
demands for performance, notices of nonperformance, protests, notices of
protest, dishonor and acceptance of this Guaranty.

6.    NO WARRANTIES OF LENDER. Guarantor acknowledges and affirms that this
Guaranty is not made in reliance on any representation or warranty, express or
implied, by Lender concerning the financial condition of Borrower, the nature,
value or extent of any security for indebtedness, or any other matter. Guarantor
warrants and

<PAGE>   4

represents to Lender that Guarantor has full knowledge of the financial
condition of Borrower and agrees that Guarantor has established adequate means
and assumes the responsibility for being and keeping informed of the financial
condition of Borrower and of all other circumstances bearing upon the risk of
non-payment of the Obligations that diligent inquiry would reveal, including any
renewals, extensions of the Obligations or any future Obligations, and Lender
has no obligation to advise Guarantor of any information relating to Borrower's
financial condition or otherwise relating to Borrower or the indebtedness or
security therefor.

7.    LENDER SECURITY. Any and all indebtedness of Borrower now or hereafter
owed to Guarantor and all claims whenever arising of Guarantor against Borrower
are hereby subordinated to the Obligations and assigned to Lender as additional
collateral. If Lender so requests, any note or other instrument evidencing such
indebtedness and all claims of Guarantor against Borrower shall be delivered to
Lender, and such indebtedness and all claims of Guarantor against Borrower shall
be collected, enforced and received by Guarantor as trustee for Lender and be
paid over to Lender on account of the Obligations but without reducing or
affecting in any manner the liability of Guarantor hereunder. Should Guarantor
fail to collect proceeds of debt owed to Guarantor by Borrower, or fail to pay
any such proceeds received by Guarantor pursuant to this Section 7 or otherwise
to Lender, Lender as Guarantor's attorney-in-fact may do such acts and sign such
documents in Guarantor's name as Lender considers necessary to effect such
collection, and Guarantor hereby irrevocably appoints Lender as Guarantor's
attorney-in-fact for such purposes.

8.    LENDER EXPENSE. Guarantor agrees to pay Lender on demand reasonable
attorneys' fees and all other costs and expenses which may be incurred (a) in
the collection or attempted collection from Borrower of any of the Obligations
and in the enforcement or attempted enforcement by Lender of this Guaranty or
any collateral therefor, whether or not legal proceedings are instituted, and
including, without limitation, a reasonable estimate of the allocated cost of
Lender's in-house legal counsel and staff and other legal expenses, and (b) in
connection with any bankruptcy or post-judgment proceeding, whether or not suit
is filed and, including, without limitation, those incurred in each and every
action, suit or proceeding, including any and all appeals and petitions
therefrom.

9.    MULTIPLE GUARANTORS. When a single Guarantor executes this Guaranty, any
words used herein in the plural shall be deemed to have been used in the
singular where the context and construction so require. When this Guaranty is
executed by more than one Guarantor, the word "Guarantor" shall mean all and any
one or more of them and such Guarantors shall be jointly and severally liable
for any and all Obligations hereunder. The Obligations of Guarantor hereunder
are in addition to any Obligations of any one or more other guarantors under any
other guaranties and the liability of Guarantor to Lender shall be the aggregate
liability of said Guarantor under the terms of this Guaranty and all of said
other guaranties.

10.   REVIVAL OF PRIOR PAYMENTS. Guarantor agrees that to the extent Borrower
makes a payment or payments to, or is credited for any payment or payments made
for or on behalf of Borrower to Lender, which payment or payments, or any part
thereof, is subsequently invalidated, determined to be fraudulent or
preferential, set aside and/or required to be repaid to any trustee, receiver,
assignee or any other party whether under any Bankruptcy, State or Federal Law,
common law or equitable cause or otherwise, then to the extent thereof, the
Obligations or part thereof intended to be satisfied thereby, shall be revived,
reinstated and continued in full force and effect as if said payment or payments
had not originally been made by or on behalf of Borrower and this Guaranty shall
continue to be effective or shall be reinstated, as applicable, with respect
thereto.

11.   BORROWER AUTHORITY. If Borrower is a corporation, a partnership, trust, or
limited liability company, Lender shall have no duty to inquire into the powers
of Borrower or the officers, directors, partners, trustees, members, managers,
or agents acting or purporting to act on its behalf, and any document entered
into pursuant to the Security Agreement or any other Obligations incurred upon
the purported exercise of such power or authority is hereby guaranteed
hereunder.

12.   NO LENDER WAIVER. No failure or delay on the part of Lender in exercising
any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or remedy preclude
any other or further exercise of any such right, power or remedy hereunder or
provided by law or separate agreement. No modification or waiver of any
provision of this Guaranty, nor consent to any departure by Guarantor therefrom
or release of any security or right of setoff granted hereby, shall be effective
unless in a writing signed by Lender and then such waiver or consent shall be
effective only in the specific instances and for the specific purposes given.

13.   GUARANTY BINDING; LENDER ASSIGNMENT. All parts of this Guaranty shall be
binding upon Guarantor and Guarantor's heirs, executors, administrators,
successors and assigns; provided however, Guarantor may not assign its
Obligations hereunder. This Guaranty shall inure to the benefit of Lender and
its successors and assigns and Lender may assign or otherwise transfer without
notice to Guarantor all or any part of the Obligations and this Guaranty, and
may transfer therewith the whole or any part of any security for the Obligations
and this Guaranty.

14.   GUARANTOR COMMITMENT. Each Guarantor acknowledges receipt of a true copy
of this Guaranty. Guarantor agrees this Guaranty shall be effective without
notice from Lender of its acceptance of the Guaranty. Guarantor understands and
agrees that this Guaranty is not a commitment by Lender to enter into the
Security Agreement, to renew or extend the Security Agreement, to extend
additional credit to Borrower, or extend financial accommodations to Borrower.

15.   RELIANCE BY LENDER. Guarantor acknowledges that Lender has or may in the
future extend credit to Borrower in reliance on Guarantor's unconditional
promise to repay any and all Obligations, and Lender is relying on the waivers,
warranties, and promises made by Guarantor in this Guaranty. Guarantor agrees
that each of the waivers, warranties, and promises set forth in this Guaranty
are made with Guarantor's understanding of their significance and consequences

<PAGE>   5

and that they are reasonable. If any waivers, warranties and promises are
determined to be contrary to any applicable law or public policy, such waivers,
warranties, and promises shall be effective to the maximum extent permitted by
law. Before signing the Guaranty, Guarantor has either sought the advice of
counsel to explain the waivers of Guarantor's rights and defenses as stated
herein and the effect thereof, or has had the opportunity to seek such counsel,
and in any event intends this Guaranty to be as unrestricted as possible.
Guarantor has therefore consciously and intentionally waived all defenses of
Guarantor and rights that could exonerate Guarantor hereunder to the full extent
permitted by the laws of the State of California, whether or not each and every
defense, right, or waiver is explained or described in detail in this Guaranty.

16.   SEVERABILITY. Should any one or more provisions of this Guaranty be
determined to be illegal or unenforceable, all other provisions shall remain
effective.

17.   CONTINUING GUARANTY. This is a continuing Guaranty. Revocation by
Guarantor shall be effective only upon the close of the next business day after
written notice thereof is received by an officer of Lender at 2401 Kerner
Boulevard, San Rafael, California, 94901, Attention: Asset Management, by
certified or registered mail, return receipt requested and, subject to Section
10 hereof, any such revocation shall be effective only as to Obligations arising
after the next business day after the notice of revocation was received by an
officer of the Lender in accordance with this Section 19. Such notice shall be
delivered to any other office of Lender designated in a written notice mailed by
Lender to Guarantor at its address set forth below.

18.   CALIFORNIA LAW. This Guaranty shall be deemed to have been made under and
shall be governed by the laws of the State of California in all respects,
including matters of construction, validity and performance. At Lender's sole
discretion, option and election, jurisdiction and venue for any legal action
between the parties arising out of or relating to this Guaranty shall be in the
Superior Court of Marin County, California, or, in cases where federal diversity
jurisdiction is available, in the United States District Court for the Northern
District of California located in San Francisco, California.

19.   WAIVER OF RIGHT TO JURY TRIAL. GUARANTOR, TO THE EXTENT IT MAY LAWFULLY DO
SO, HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH
RESPECT TO THIS GUARANTY OR ANY AGREEMENT EXECUTED IN CONNECTION HEREWITH.

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