Document:

EXHIBIT 10.4

 

	
	SECURITY AGREEMENT

 

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

 

SECURED
PARTY:

THE
COMMUNITY BANK

113
N Fifth Street

Suite 101

Zanesville,
OH 43701

 

DEBTOR:

AXION
RECYCLED PLASTICS INCORPORATED

an
Ohio Corporation

4005
All American Way

Zanesville,
OH 43701

 

The pronouns
"you" and "your" refer to the Secured Party. The pronouns "I," "me" and "my"
refer to each person or entity signing this Agreement as Debtor and agreeing to give the Property described in this Agreement as
security for the Secured Debts.

 

1. SECURED
DEBTS. The term "Secured Debts" includes and this Agreement will secure each of the following:

 

A.Specific
Debts. The following debts and all extensions, renewals, refinancings, modifications and replacements. A promissory note or
other agreement, No. 2312374, dated November 15, 2013, from me to you, in the amount of $3,500,000.00.

 

B.
All Debts. All present and future debts from me to you, even if this Agreement is not specifically referenced, the future debts
are also secured by other collateral, or if the future debt is unrelated to or of a different type than this debt. If morethan
one person signs this Agreement, each agrees that it will secure debts incurred either individually or with others who may not
sign this Agreement. Nothing in this Agreement constitutes a commitment to make additional or future loans or advances. Any such
commitment must be in writing.

 

This
Agreement will not secure any debt for which you fail to give any required notice of the right of rescission. This Agreement will
not secure any debt for which a non-possessory, non-purchase money security interest is created in "household goods"
in connection with a "consumer loan," as those terms are defined by federal law governing unfair and deceptive credit
practices. In addition, this Agreement will not secure any other debt if, with respect to such other debt, you fail to fulfill
any necessary requirements or limitations of Sections 19(a), 32 or 35 of Regulation Z or if, as a result, the other debt would
become subject to Section 670 of the John Warner National Defense Authorization Act for Fiscal Year 2007.

 

C.
Sums Advanced. All sums advanced and expenses incurred by you under the terms of this Agreement.

 

Loan Documents
refer to all the documents executed in connection with the Secured Debts.

 

2.SECURITY
INTEREST. To secure the payment and performance of the Secured Debts, I grant you a securityinterest in all ofthe Property
described in this Agreement that I own or have sufficient rights in which to transfer an interest, now or in the future, wherever
the Property is or will be located, and all proceeds and products from the Property (including, but not limited to, all parts,
accessories, repairs, replacements, improvements, and accessions to the Property). Property is all the collateral given as security
for the Secured Debts and described in this Agreement, and includes all obligations that support the payment or performance of
the Property. "Proceeds" includes cash proceeds, non-cash proceeds and anything acquired upon the sale, lease, license,
exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions
on account of the Property.

 

This
Agreement remains in effect until terminated in writing, even if the Secured Debts are paid and you are no longer obligated to
advance funds to me under any loan or credit agreement.

 

3. PROPERTY
DESCRIPTION. The Property is described as follows:

 

A.Specific
Property. See attached Exhibit A.

 

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

 

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

 

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

 

C.
Name and Location. My name indicated in the DATE AND PARTIES section is my exact legal name. I will provide verification of
registration and location upon your request. I will provide you with at least 30 days notice prior to any change in my name, address,
or state of organization or registration.

 

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

 

E.
Ownership of Property. I represent that I own all of the Property. I represent that the vehicle portion of the Property is
not a vehicle seized pursuant to any federal, state or local forfeiture law. Your claim to the Property is ahead of the claims
of any other creditor, except the Ohio Department of Development and except as disclosed in writing to you prior to any advance
on the Secured Debts. I represent thatI am the original owner of the Property and, if I am not, that I have provided you with
a list of prior owners of the Property.

 

5. DUTIES
TOWARD PROPERTY.

 

A.Protection
of Secured Party's Interest. I will defend the Property against any other claim. I agree to do whatever you require to protect
your security interest and to keep your claim in the Property ahead of the claims of other creditors. I will not do anything to
harm your position.

 

	Axion
        Recycled Plastics Incorporated

        Ohio
        Security Agreement
	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 1

 

 

    	 

    	 

    

 

I
will keep books, records and accounts about the Property and my business in general. I will let you examine these and make copies
at any reasonable time. I will prepare any report or accounting you request which deals with the Property.

 

B.
Use, Location, and Protection of the Property. I will keep the Property in my possession and in good repair. I will use it
only for commercial purposes. I will not change this specified use without your prior written consent. You have the right of reasonable
access to inspect the Property and I will immediately inform you of any loss or damage to the Property. I will not cause or permit
waste to the Property.

 

I
will keep the Property at my address listed in the DATE AND PARTIES section unless we agree I may keep it at another location.
If the Property is to be used in other states, I will give you a list of those states. The location of the Property is given to
aid in the identification of the Property. It does not in any way limit the scope of the security interest granted to you. I will
notify you in writing and obtain your prior written consent to any change in location of any of the Property. I will not use the
Property in violation of any law. I will notify you in writing prior to any change in my address, name or, if an organization,
any change in my identity or structure.

 

Until
the Secured Debts are fully paid and this Agreement is terminated, I will not voluntarily grant a security interest in any of the
Property without your prior written consent. I will pay all taxes and assessments levied or assessed against me or the Property
and provide timely proof of payment of these taxes and assessments upon request.

 

C.
Selling, Leasing or Encumbering the Property. I will not sell, offer to sell, lease, or otherwise transfer or encumber the
Property without your prior written permission which shall not be unreasonably withheld. Any disposition of the Property contrary
to this Agreement will violate your rights. Your permission to sell the Property may be reasonably withheld without regard to the
creditworthiness of any buyer or transferee. I will not permit the Property to be the subject of any court order affecting my rights
to the Property in any action by anyone other than you.

 

6. INSURANCE.
I agree to keep the Property insured against the risks reasonably associated with the Property. I will maintain this insurance
in the amounts you reasonably require. This insurance will last until the Property is released from this Agreement. I may choose
the insurance company, subject to your approval, which will not be unreasonably withheld.

 

I will have
the insurance company name you as loss payee on any insurance policy. I will give you and the insurance company immediate notice
of any loss. You may apply the insurance proceeds toward what is owed on the Secured Debts. You may require added security as a
condition of permitting any insurance proceeds to be used to repair or replace the Property.

 

If you acquire
the Property in damaged condition, my right to any insurance policies and proceeds will pass to you to the extent of the Secured
Debts.

 

I will immediately
notify you of cancellation or termination of insurance. If I fail to keep the Property insured, you may obtain insurance to protect
your interest in the Property and I will pay for the insurance on your demand. You may demand that I pay for the insurance all
at once, or you may add the insurance premiums to the balance of the Secured Debts and charge interest on it at the rate that applies
to the Secured Debts. This insurance may include coverages not originally required of me, may be written by a company other than
one I would choose, and may be written at a higher rate than I could obtain if I purchased the insurance. I acknowledge and agree
that you or one of your affiliates may receive commissions on the purchase of this insurance.

 

7. AUTHORITY
TO PERFORM. I authorize you to do anything you deem reasonably necessary to protect the Property,and perfect and continue
your security interest in the Property. If I fail to perform any of my duties under this Agreement or any other Loan Document,
you are authorized, without notice to me, to perform the duties or cause them to be performed.

 

These authorizations
include, but are not limited to, permission to:

 

	 	A.	pay and discharge taxes, liens, security interests or other encumbrances at any time levied or placed on the Property.
	 	 	 
	 	B.	order and pay for the repair, maintenance and preservation of the Property.
	 	 	 
	 	C.	file any financing statements on my behalf and pay for filing and recording fees pertaining to the Property.
	 	 	 
	 	D.	take any action you feel necessary to realize on the Property, including performing any part of a contract or endorsing it in my name.
	 	 	 
	 	E.	handle any suits or other proceedings involving the Property in my name.
	 	 	 
	 	F.	prepare, file, and sign my name to any necessary reports or accountings.
	 	 	 
	 	G.	make an entry on my books and records showing the existence of this Agreement.

 

If you perform
for me, you will use reasonable care. If you exercise the care and follow the procedures that you generally apply to the collection
of obligations owed to you, you will be deemed to be using reasonable care. Reasonable care will not include: any steps necessary
to preserve rights against prior parties; the duty to send notices, perform services or take any other action in connection with
the management of the Property; or the duty to protect, preserve or maintain any security interest given to others by me or other
parties. Your authorization to perform for me will not create an obligation to perform and your failure to perform will not preclude
you from exercising any other rights under the law or this Agreement. All cash and non-cash proceeds of the Property may be applied
by you only upon your actual receipt of cash proceeds against such of the Secured Debts, matured or unmatured, as you determine
in your sole discretion.

 

If you come
into actual or constructive possession of the Property, you will preserve and protect the Property. For purposes of this paragraph,
you will be in actual possession of the Property only when you have physical, immediate and exclusive control over the Property
and you have affirmatively accepted that control. You willbe in constructive possession of the Property only when you have
both the power and the intent to exercise control over the Property.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	Axion
        Recycled Plastics Incorporated

        Ohio
        Security Agreement
	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 2

 

 

    	 

    	 

    

 

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

 

J.
Property Transfer. I transfer all or a substantial part of my money or property without your consent, which shall not be unreasonably
withheld.

 

K.
Property Value. You determine in good faith that the value of the Property has declined or is impaired.

 

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

 

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

 

9. DUE
ON SALE OR ENCUMBRANCE. You may, at your option, declare the entire balance of this Agreement to be immediately due and payable
upon the creation of, or contract for the creation of, any superior lien or encumbrance on the Property, other than the Ohio Department
of Development, or the transfer or sale of all or any part of the Property. This right is subject to the restrictions imposed by
federal law (12 C.F.R. 591), as applicable.

 

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

 

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

 

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

 

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

 

D.
Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the Secured Debts.

 

E.
Assembly of Property. You may require me to gather the Property and make it available to you in a reasonable fashion.

 

F.
Repossession. You may repossess the Property so long as the repossession does not involve a breach of the peace. You may sell,
lease or otherwise dispose of the Property as provided by law. You may apply what you receive from the disposition of the Property
to your expenses, your attorneys' fees and legal expenses (where not prohibited by law), and any debt I owe you. If what you receive
from the disposition of the Property does not satisfy the debt, I will be liable for the deficiency (where permitted by law). In
some cases, you may keep the Property to satisfy the debt.

 

Where
a notice is required, I agree that ten days prior written notice sent by first class mail to my address listed in this Agreement
will be reasonable notice to me under the Ohio Uniform Commercial Code. If the Property is perishable or threatens to decline speedily
in value, you may, without notice to me, dispose of any or all of the Property in a commercially reasonable manner at my expense
following any commercially reasonable preparation or processing.

 

If
any items not otherwise subject to this Agreement are contained in the Property when you take possession, you may hold these items
for me at my risk and you will not be liable for taking possession of them.

 

G.
Use and Operation. You may enter upon my premises and take possession of all or any part of my property for the purpose of
preserving the Property or its value, so long as you do not breach the peace. You may use and operate my property for the length
of time you feel is necessary to protect your interest, all without payment or compensation to me.

 

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

 

11. WAIVER
OF CLAIMS. I waive all claims for loss or damage caused by your acts or omissions where you acted reasonably and in good faith.

 

12. PERFECTION
OF SECURITY INTEREST AND COSTS. I authorize you to file a financing statement and/or security agreement, as appropriate, covering
the Property. I will comply with, facilitate, and otherwise assist you in connection with obtaining perfection or control over
the Property for purposes of perfecting your security interest under the Uniform Commercial Code. I agree to pay all taxes, fees
and costs you pay or incur in connection with preparing, filing or recording any financing statements or other security interest
filings on the Property. I agree to pay all actual costs of terminating your security interest.

 

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

 

14. JOINT
AND INDIVIDUAL LIABILITY AND SUCCESSORS. Each Debtor's obligations under this Agreement are independent of the obligations
of any other Debtor. You may sue each Debtor individually or together with any other Debtor. You may release any part of the Property
and I will still be obligated under this Agreement for the remaining Property. Debtor agrees that you and any party to this Agreement
may extend, modify or make any change in the terms of this Agreement or any evidence of debt without Debtor's consent. Such a change
will not release Debtor from the terms of this Agreement. If you assign any of the Secured Debts, you may assign all or any part
of this Agreement without notice to me or my consent, and this Agreement will inure to the benefit of your assignee to the extent
of such assignment. You will continue to have the unimpaired right to enforce this Agreement as to any of the Secured Debts that
are not assigned. This Agreement shall inure to the benefit of and be enforceable by you and your successors and assigns and any
other person to whom you may grant an interest in the Secured Debts and shall be binding upon and enforceable against me and my
personal representatives, successors, heirs and assigns.

 

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

 

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

 

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

 

	Axion
        Recycled Plastics Incorporated

        Ohio
        Security Agreement
	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 3

 

 

    	 

    	 

    

 

18.
WAIVER OF JURY TRIAL. All of the parties to this Agreement knowingly and intentionally, irrevocably and unconditionally,
waive any and all right to a trial by jury in any litigation arising out of or concerning this Agreement or any other Loan Document
or related obligation. All of these parties acknowledge that this section has either been brought to the attention of each party's
legal counsel or that each party had the opportunity to do so.

 

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

 

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

 

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

 

DEBTOR:

 

Axion Recycled Plastics Incorporated 

 

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

 

SECURED PARTY:

 

The Community Bank

 

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

 

	Axion
        Recycled Plastics Incorporated

        Ohio
        Security Agreement
	 	Initials ______
	OH/4XXCHRISO00000000000665015N	Wolters
    Kluwer Financial Services ©1996, 2013 Bankers SystemsTM	Page 4EXHIBIT 10.5

 

GUARANTY

(Continuing
Debt - Unlimited)

 

 

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

 

LENDER:

THE COMMUNITY BANK

113 N Fifth Street

Suite 101

Zanesville, OH 43701

Telephone: (740) 454-1600

 

BORROWER:

AXION RECYCLED PLASTICS INCORPORATED

an Ohio Corporation

4005 All American Way

Zanesville, OH 43701

 

GUARANTOR:

AXION INTERNATIONAL HOLDINGS, INC.

a Colorado Corporation

180 South Street, Suite 104

New
Providence, NJ 07974

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	Axion
                                                                             International Holdings, Inc.

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

 

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

J.
Property Transfer. I transfer all or a substantial part of my money or assets without your consent, which shall not be unreasonably
withheld.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.
REMEDIES. After the Borrower or I default, you may at your option do any one or more of the following.

 

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

 

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

  

	Axion
                                                                             International Holdings, Inc.

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

 

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	Axion
                                                                             International Holdings, Inc.

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

 

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

	 	GUARANTOR:	 	 	 	 
	 	 	 	 	 	 
	 	Axion International Holdings, Inc.	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	By  	/s/ Steven L. Silverman	 	Date 	11/15/2013	 
	 	 	Steven L. Silverman, CEO	 	 	 	 

 

	LENDER:	 	 	 	 
	 	 	 	 	 
	The Community Bank	 	 	 	 
	 	 	 	 	 	 	 
	 	By 	/s/ Chris Olney	 	Date 	11/15/2013	 
	 	Chris Olney, Chief Credit Officer	 	 	 	 

 

	Axion
                                                                             International Holdings, Inc.

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

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