Document:

Exhibit 10.4 - Continuing Guaranty by CRESA Partners of Orange Co

    Exhibit
      10.4

    

    CONTINUING
      GUARANTY OF PAYMENT AND PERFORMANCE

    

    THIS
      CONTINUING GUARANTY OF PAYMENT AND PERFORMANCE (the "Guaranty") is entered
      into
      by and between CRESA
      Partners of Orange County, LP, a Delaware limited partnership
(the
      "Guarantor"), in favor of First
      Republic Bank (the
      "Lender") as of June
      8, 2006.

    

    A.  ASDS
      of Orange County, Inc., a Delaware corporation (the
      "Borrower"), has requested a loan or loans (collectively, the "Loan") from
      the
      Lender which will be evidenced by Borrower's promissory note or notes
      (collectively, the "Note") in favor of the Lender. The Loan arises out of that
      certain loan agreement dated June
      8, 2006 (the
      "Loan Agreement") executed by Borrower and the Lender. The Note and the Loan
      Agreement, together with all security agreements, guaranties, third party pledge
      agreements and all other documents now or hereafter executed by Borrower and
      delivered to Lender at Lender's request in connection with the Loan, and all
      extensions, renewals, modifications and replacements of any or all of such
      documents, shall be referred to herein as the "Loan Documents."

    

    B.  Guarantors
      are shareholders and/or officers of Borrower. Guarantors will benefit by the
      proceeds of the Loan to be provided to Borrower.

    

    C.  To
      induce
      Bank to enter into the Loan Agreement and to accept the Notes and to advance
      funds to Borrower thereunder, Guarantors are delivering this
      Guaranty.

    

    AGREEMENT

    

    THEREFORE,
      in consideration of the foregoing and for other valuable consideration, the
      receipt and adequacy of which are hereby acknowledged, Guarantor hereby agrees
      as follows:

    

    1. Definitions.
      For
      purposes of this Guaranty, terms not otherwise defined herein shall have the
      meaning specified in Exhibit
      A to
      the
      Loan Agreement.

    

    	2.  	
            Guaranty.

          

    

    (a)  Guaranty
      of Obligations. Guarantor
      hereby guaranties to Bank, its successors and assigns, as primary obligors
      and
      not merely as surety, the full and faithful payment of all amounts owed and
      performance of each and every one of the obligations, responsibilities and
      undertakings to be carried out, performed or observed by Borrower under the
      Loan
      Documents and all documents executed in connection therewith and any other
      agreements or indebtedness of Borrower to Bank (hereafter collectively referred
      to as the "Guaranteed Obligations"). The word "indebtedness" is used herein
      in
      its most comprehensive sense and includes any and all loans, advances, debts,
      lease obligations, and other obligations and liabilities of Borrower,
      heretofore, now, or hereafter made, incurred or created, whether voluntary
      or
      involuntary and however arising, whether due or not due, absolute or contingent,
      liquidated or nonliquidated, determined or undetermined, whether Borrower may
      be
      liable individually or jointly with others, or whether recovery upon such
      indebtedness may be or hereafter become barred or otherwise
      unenforceable.

    

    (b)  Guaranty
      of Performance. If
      at any
      time Borrower, its successors or permitted assigns, fails, neglects or refuses
      to pay amounts or perform any of its obligations, responsibilities or
      undertakings as expressly provided pursuant to the terms and conditions of
      the
      Guaranteed Obligations, then Guarantors shall pay such amounts or perform or
      cause to be performed such obligation, responsibility or undertaking as required
      pursuant to the terms and conditions of the Guaranteed
      Obligations.

    
      
         

      

      
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    3. Absolute.
      This
      Guaranty is irrevocable, absolute, present and unconditional continuing
      guaranty. The obligations of Guarantor under this Guaranty shall not be
      affected, reduced, modified or impaired upon the happening from time to time
      of
      any of the following events, whether or not with notice to (except as notice
      is
      otherwise expressly required herein) or the consent of Guarantor:

    

    (a)  Failure
      to Give Notice. The
      failure to give notice to Guarantor of the occurrence of a default under the
      terms and provisions of this Guaranty or the Guaranteed
      Obligations;

    

    (b)  Modification
      or Amendment. The
      amendment, acceleration, renewal or extension of any obligation, covenant or
      agreement or the Guaranteed Obligations;

    

    (c)  Bank's
      Failure to Exercise Rights. Any
      failure, omission, delay by, or inability on the part of Bank to assert or
      exercise any right, power or remedy conferred on Bank in this Guaranty or the
      Guaranteed Obligations as the case may be, including the failure to execute
      on
      collateral held for this Guaranty, the Guaranteed Obligations or the Loan
      Documents;

    

    (d)  Change
      in Borrower. A
      termination, dissolution, consolidation or merger of Borrower with or into
      any
      other entity, the voluntary or involuntary liquidation, dissolution, sale or
      other disposition of all or substantially all of Borrower's assets, the
      marshalling of Borrower's assets and liabilities, the receivership, insolvency,
      bankruptcy, assignment for the benefit of creditors, reorganization,
      arrangement, composition with creditors, or readjustment of, or other similar
      proceedings affecting Borrower, Guarantor, or any of the assets of
      either;

    

    (e)  Subordination
      or Release of Security. Any
      subordination or release of any collateral now or hereafter held by Bank for
      the
      performance of the Guaranteed Obligations;

    

    (f)  Assignment.
      The
      assignment of any right, title or interest of Bank herein or in the Loan
      Documents to any other person; or

    

    (g)  Extent
      of Guarantor's Obligations. Any
      other
      cause or circumstance, foreseen or unforeseen, whether similar or dissimilar
      to
      any of the foregoing; it is the intent of Guarantor that the obligations
      hereunder shall not be discharged except by: (i) payment of amounts owing
      pursuant to this Guaranty and/or Guaranteed Obligations, then only to the extent
      of such payment or payments; or (ii) full performance of obligations under
      this
      Guaranty and/or Guaranteed Obligations, then only to the extent of such
      performed or discharged obligation or obligations.

    

    4.  Guaranty
      of Payment. The
      liability of Guarantors on this Guaranty is a guaranty of payment and
      performance and not of collectibility, and is not conditional or contingent
      on
      the genuineness, validity, regularity, or enforceability of the Guaranteed
      Obligations or the pursuit by Bank of any remedies that it now has or may
      hereafter have with respect thereto, or the cessation of Borrower's liability
      for any reason other than full performance under the Loan Documents, including,
      without limitation, any and all obligation to indemnify Bank.

    

    5.  Authorization.
      Guarantor
      hereby authorizes Bank, without notice or demand and without affecting its
      liability hereunder, and without
      consent of Guarantor or prior notice to Guarantor, from time to
      time
      to: (a) make any modifications to the Guaranteed Agreement with the consent
      of
      the parties thereto; (b) assign the Guaranteed Obligations and this Guaranty;
      (c) take and hold security for the performance of the obligations guarantied
      herein with the consent of the party providing such security; and (d) accept
      additional guarantors.

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

    

    

    6.  Waiver
      and Release by Guarantor.

    

    (a)  Enforcement
      Against Other Parties. Guarantor
      hereby waives the right to require Bank to: (i) proceed against Borrower or
      any
      other person or guarantor; (ii) proceed or exhaust any security held from any
      person; (iii) proceed against any other guarantor; or (iv) pursue any other
      remedy available to Bank.

    

    (b)  Subrogation.
      Until
      the
      Guaranteed Obligations have been paid or otherwise discharged in full, Guarantor
      does hereby waive all rights of subrogation and any right to enforce any remedy
      which Bank now has, or may have, against Borrower, and Guarantor does hereby
      waive any benefit of, and any right to participate in, any security now or
      hereafter held by Bank. Guarantor hereby waives any defense it may have now
      or
      in the future based on any election of remedies by Bank which destroys
      Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower
      for reimbursement and Guarantor acknowledges that they will be liable to Bank
      even though Guarantor may well have no such recourse against
      Borrower.

    

    (c)  Notices.
      Guarantor
      hereby waives notice of (i) acceptance and reliance on this Guaranty,
(ii)
      notice of renewal, extension or modification of any of the Guaranteed
      Obligations, and (iii) notice of default or demand in the case of
      default.

    

    (d)  Release
      of Third Parties. Guarantor
      hereby waives any right or defense it may now or hereafter have based upon
      (i)
      Bank's release of any party who may be obligated to Bank; (ii) Bank's release
      or
      impairment of any collateral for the Guaranteed Obligations; and (iii) the
      modification or extension of the obligations or agreements guaranteed under
      this
      Guaranty.

    

    (e)  Guarantor
      Defenses. Guarantor
      hereby waives, to the maximum extent such wavier is permitted by law, any and
      all benefits or defenses arising directly or indirectly under any one or more
      of: (i) California Civil Code Sections 2799, 2808, 2809, 2810, 2815, 2819,
      2820,
      2821, 2822, 2838, 2839, 2845, 2846, 2847, 2848, 2849, 2850, 2899 and 3433;
      (ii)
      Chapter 2 of Title 14 of the California Civil Code; (iii) California Code of
      Civil Procedure Sections 580a, 580b, 580c, 580d, 725a and 726; or (iv)
      California Commercial Code 3605.

    

    (f)  Statute
      of Limitations. Guarantor
      hereby waives any statute of limitation affecting liability under this Guaranty
      or the enforceability of this Guaranty.

    

    (g)  Cessation
      of Liability of Borrower. Guarantor
      waives any defense arising by reason of any disability or other defense of
      Borrower or by reason of the cessation from any cause whatsoever of the
      liability of Borrower.

    

    (h)  Confidentiality
      of Accounting. Guarantor
      waives the right to assert a confidential relationship, if any, Guarantor may
      have with any accounting firm and/or service bureau in connection with any
      information requested by Bank pursuant to or in accordance with this Guaranty
      or
      any agreement in connection with this Guaranty, and agrees that Bank may contact
      directly any such accounting firm and/or service bureau in order to obtain
      such
      information.

    

    (i)  Duty
      of Disclosure. Guarantor
      hereby waives any duty on the part of Bank to disclose to Guarantor any facts
      Bank may now or hereafter know about Borrower or Borrower financial condition
      regardless of whether Bank has reason to believe that any such facts materially
      increase the risk beyond that which Guarantor intends to assume, or has reason
      to believe that such facts are unknown to Guarantor, or has a reasonable
      opportunity to communicate such facts to Guarantor.

    
      
         

      

      
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    7.  Information.
      Guarantors
      hereby represent that Guarantors are fully aware of the financial condition
      and
      operation of Borrower and is in a position by virtue of his relationship to
      Borrower to obtain all necessary financial and operational information
      concerning Borrower. Beneficiary need not disclose to Guarantors
      any information about: (i) the Guaranteed Obligations or any modification
      thereto, and any action or non-action
      in connection therewith; (ii) any other obligation guarantied hereby; (iii)
      the
      financial condition or operation of Borrower; or (iv) any other
      guaranties.

    

    8.  Subordination.
      Until
      the
      Guaranteed Obligations have been paid or otherwise discharged in full, Guarantor
      does hereby subordinate any and all liability or indebtedness of Borrower owed
      to Guarantors to the obligations of Borrower to Bank which arise under the
      Loan
      Documents. However, if any Guarantor is an officer of Borrower, such Guarantor
      may receive payment of current reasonable salary and current reasonable payments
      made in the ordinary course of business for goods provided or services
      rendered.

    

    9.  Grant
      of Security Interest; Bank's Setoff Rights. To
      secure
      Guarantor's obligations to Bank under this Guaranty, Guarantor grants a security
      interest to Bank in, and agrees that Bank shall have a right of setoff against,
      all property of Guarantor now or hereafter in the physical possession of or
      on
      deposit with Bank, including all accounts, deposit accounts, documents,
      instruments, general intangibles, chattel paper, and property of Guarantor
      held
      for safekeeping or otherwise. Bank shall have the right to enforce such security
      interest by right of setoff without demand on or notice to Guarantor, and no
      waiver or release of any such security interest or right of setoff shall be
      valid or enforceable against Bank unless such waiver is expressly set forth
      in a
      written agreement signed by Bank.

    

    10.  Effect
      of Borrowers Bankruptcy. The
      liability of the Guarantors under this Guaranty shall in no way be affected
      by:
      (a) the release or discharge of Borrower in any creditor proceeding,
      receivership, bankruptcy, or other proceeding; (b) the impairment, limitation,
      or modification of the liability of Borrower or the estate of Borrower, or
      of
      any remedy for the enforcement of Borrower's liability, which may result from
      the operation of any present or future provision of the Bankruptcy Code or
      any
      Insolvency, debtor relief statute (state or federal), or any other statute,
      or
      from the decision of any court; (c) the rejection or disaffirmance of the
      indebtedness, or any portion of the indebtedness, in any such proceeding; or
      the
      cessation, from any cause whatsoever, whether consensual or by operation of
      law,
      of the liability of Borrower to Beneficiary resulting from any such
      proceeding.

    

    11.  Claims
      in Bankruptcy. If
      Guarantor has not paid Bank the amounts owed under this Guaranty, Guarantor
      will
      file all claims against Borrower in any bankruptcy or other liquidation
      proceeding on any indebtedness of Borrower to the Guarantor, and will assign
      to
      Bank all rights of Guarantors on any such indebtedness. If Guarantor does not
      file any such claim, Bank, as attorney-in-fact for Guarantor, is authorized
      to
      do so in the name of Guarantor, or, in Bank's discretion, to assign the claim
      and to file a proof of claim in the name of Bank's nominee. In all such cases,
      whether in bankruptcy or otherwise, the person or persons authorized to pay
      such
      claim shall pay to Bank the full amount of any such claim, and, to the full
      extent necessary for that purpose, Guarantor assigns to Bank all of Guarantor's
      rights to any such payments or distributions to which Guarantor would otherwise
      be entitled.

    

    12.  Applications
      of Payments. With
      or
      without notice to Guarantor, Bank, in its sole discretion and at any time and
      from time to time and in such manner and on such terms as it deems fit may:
      (a)
      apply any or all payments or recoveries from Borrower, from Guarantor, or from
      any other guarantors or endorser under this or any other instrument, or realized
      from any security, to the indebtedness of Borrower to Bank under the Loan
      Documents, in 

    
      
         

      

      
        -38-

        
          

        

      

      
         

      

    

    such
      order or priority as Bank sees fit, whether such indebtedness is guaranteed
      by
      this Guaranty or is otherwise secured or is due at the time of such application;
      and (b) refund to Borrower any payment received by Bank on any indebtedness
      hereby guaranteed and payment of the amount refunded shall be fully guaranteed
      hereby. Any recovery realized from any other guarantor under this or any other
      instrument shall be first credited on that portion of the indebtedness of
      Borrower to Beneficiary that exceeds the maximum liability, if any, of
      Guarantors under this Guaranty.

    

    13.  Representations
      and Warranties. Guarantor
      hereby represents and warrants to Bank that:

    

    (a)  Solvency.
      To
      the
      best of Guarantor's knowledge, upon execution of this Guaranty, Guarantor will
      remain liquid; the total value of its assets will exceed its liabilities
      (contingent and non-contingent); and it will be able to pay its debts as they
      come due.

    

    (b)  Authorization
      and Enforceability. Guarantor
      has duly authorized by all necessary action the execution, delivery and
      performance of this Guaranty and neither its execution and delivery of this
      Guaranty nor its consummation of the transactions contemplated by this Guaranty
      nor its compliance with any of the terms and provisions of this Guaranty does
      or
      will require any approval not yet received of its stockholders or any approval
      or consent of any trustee or holders of any of its obligations and upon their
      execution and delivery in accordance with the provisions hereof will constitute
      legal, valid and binding agreements and obligations of Guarantor or the party
      which executes the same, enforceable in accordance with their respective
      terms.

    

    (c)  No
      Violation. The
      execution, delivery and performance by Guarantor of this Guaranty shall not:
      (a)
      violate any law or regulation by which Guarantor is bound; (b) to the best
      of
      Guarantor's knowledge constitute an event of default under any agreement to
      which Guarantor is now a party or by which Guarantor may be bound; or (c) will
      conflict with or result in the breach of, or require any consent under, the
      organizational documents of Guarantor.

    

    (d)  Financial
      Statements. All
      financial statements and information relating to Guarantor which have been
      delivered by Guarantor to Bank are true and correct and have been prepared
      in
      accordance with generally accepted accounting principles consistently applied,
      and there has been no material adverse change in the financial condition of
      Guarantor since its submission.

    

    (e)  No
      Litigation. There
      are
      not presently any actions or proceedings pending by or against Guarantor before
      any court or administrative agency, and Guarantor has no knowledge of any
      pending, threatened or imminent litigation, governmental investigations or
      claims, complaints, actions or prosecutions involving Guarantor, except as
      heretofore disclosed in writing to Bank.

    

    (f)  Place
      of Business. Guarantor's
      sole place of business or chief executive office or residence is as set forth
      in
      Section 18(a), and Guarantor covenants and agrees that Guarantor will not,
      during the term of this Guaranty, without prior written notification to Bank,
      relocate said sole place of business or chief executive office or
      residence.

    

    (g)  Taxes.
      All
      assessments and taxes, due or payable by, or imposed, levied or assessed against
      any item of Guarantor or Guarantor's assets, have been paid in full before
      delinquency.

    

    (h)  Continuing
      and Cumulative Warranties. Guarantor's
      warranties and representations set forth in this Section shall be true and
      correct at the time of execution of this Guaranty by Guarantor and shall
      constitute continuing representations and warranties as long as any of the
      Guaranteed Obligations remain unpaid or unperformed. The warranties,
      representations and agreements set forth herein shall be cumulative and in
      addition to any and all other warranties, representations and agreements which
      Guarantor shall give, or cause to be given, to Bank, either now or
      hereafter.

    
      
         

      

      
        -39-

        
          

        

      

      
         

      

    

    

    14.General
      Negative Covenants. During
      the term hereof and so long as any Guaranteed Obligations remain unpaid or
      unperformed, Guarantor will not:

    

    (a)  Change
      in Identity. Without
      prior notice to Bank, change Guarantor's name, business structure, identity,
      or
      state of formation; nor will Guarantor add any new fictitious name, or relocate
      Guarantor's sole place of business or chief executive office or
      residence.

    

    (b)  Relocation
      or Transfer. Other
      than in the ordinary course of Guarantor's business, sell, lease, abandon or
      otherwise dispose of, move, relocate, or transfer, whether by sale or otherwise
      without Bank's prior written consent: (i) Guarantor's business, or (ii) any
      item
      of collateral securing this Guaranty.

    

    (c)  Acquisitions
      and Merger. Without
      prior notice to Bank, acquire, merge or consolidate with or into any other
      business organization or enter into any partnership, joint venture or other
      combination; or purchase or lease all or the greater part of the assets or
      business of another.

    

    15.General
      Affirmative Covenants. Guarantor
      hereby covenants and agrees that during the term hereof and until all Guaranteed
      Obligations are fully paid and performed:

    

    (a)  Accounting
      Methods. Guarantor
      shall maintain a standard and modern system of accounting in accordance with
      generally accepted accounting principles consistently applied, with ledger
      and
      account cards and/or computer tapes, discs, printouts and records pertaining
      to
      Guarantor's assets which contain information as may from time-to-time be
      required by Bank; not modify or change Guarantor's method of accounting or
      enter
      into, modify, or terminate any agreement presently existing, permit Bank and
      any
      of Bank's representatives, on demand, during Guarantor's usual business hours,
      or the usual business hours of third persons having control thereof, to have
      access to and examine all of Guarantor's books relating to any of Guarantor's
      obligations to Bank, Guarantor's financial condition and the results of
      Guarantor's operations, and, in connection therewith, permit Bank or any of
      Bank's representatives to copy and make extracts therefrom.

    

    (b)  Notifications.
      Guarantor
      shall promptly notify Bank of: (i) any material adverse change in Guarantor's
      financial condition and of any condition or event which constitutes a breach
      of
      or event of default under this Guaranty; (ii) any material pending or threatened
      litigation, governmental investigations or claims, complaints, actions or
      prosecutions involving Guarantor or the collateral securing this Guaranty;
      or
      (iii) any material loss of or material damage to any collateral securing this
      Guaranty or of any adverse change, known to Guarantor, in the prospect of
      payment of any material sums due on any item of collateral securing this
      Guaranty.

    

    (c)  Reports.
      Upon
      Bank's request, Guarantor shall deliver to Bank such reports and information
      available to Guarantor concerning the collateral securing this Guaranty as
      Bank
      may reasonably request. Such reports shall be in such form, for such periods,
      contain such information, and shall be rendered with such frequency as Bank
      may
      reasonably designate. All reports and information provided to Bank by Guarantor
      shall be complete and accurate in all material respects at the time
      provided.

    

    (d)  Financial
      Statements. Guarantor
      shall furnish to Bank, within 90 days after the end of each fiscal year of
      Guarantor, on a separate and on a consolidated basis, a balance sheet, a
      statement of income and expenses, and a statement of cash flows, all in
      reasonable detail in form and content satisfactory to Bank and prepared in
      accordance with generally accepted accounting principals, showing the results
      of
      Guarantor's operations for such fiscal year; and deliver to Bank upon the filing
      thereof copies of the Guarantor's federal income tax returns.

    
      
         

      

      
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    (e)  Further
      Assurances. It
      will
      from time to time as reasonably required by Bank perform such other acts, and
      execute and deliver to Bank such additional assignments, agreements and
      instruments, as Bank may reasonably request in connection with the
      administration and enforcement of this Guaranty and/or Bank's rights, powers
      and
      remedies hereunder.

    

    (f)  Compliance
      with Laws. Guarantor
      will comply with all Governmental Requirements.

    

    16.  Revival
      of Guaranty. If
      a
      claim ("Claim') is made upon Bank at any time (whether before or after payment
      or performance in full of any of the Guaranteed Obligations) for repayment
      or
      recovery of any amount or other value received by Bank (from any source) in
      payment of, or on account of, any of the Guaranteed Obligations and if Bank
      repays such amount, returns value or otherwise becomes liable for all or part
      of
      such Claim by reason of (a) any judgment, decree or order of any court or
      administrative body or (b) any settlement or compromise of such Claim, Guarantor
      shall remain severally liable to Bank hereunder for the amount so repaid or
      returned or for which Bank is liable to the same extent if such payments or
      value had never been received by Bank, notwithstanding any termination of this
      Guaranty nor the cancellation of any note or other document evidencing the
      Guaranteed Obligations.

    

    17.  Continuing
      Guaranty. This
      Guaranty is, as to each Guarantor, a continuing guaranty, which shall remain
      effective without reaffirmation until it has been terminated in a writing sent
      by certified mail to Bank at the address set forth below. Such termination
      shall
      be applicable only to transactions committed to or having their inception after
      the effective date of termination and upon actual receipt of written notice
      by
      Bank and shall not affect rights and obligations arising out of transactions
      committed to or having their inception prior to such date. Termination by any
      Guarantor shall not affect the continuing liability hereunder of any Guarantor
      who does not give notice of termination. Guarantor acknowledges and agrees
      that
      the indebtedness of Borrower may be a revolving credit and/or that the amount
      of
      the indebtedness may at any one time be zero dollars, which shall not constitute
      a termination of this Guaranty.

    

    18.  Miscellaneous.

    

    (a)  Notices.
      Any
      notice, demand or request required hereunder shall be given in writing (at
      the
      addresses set forth below) by any of the following means: (a) personal service;
      (b) electronic communication, whether by telex, telegram or telecopying; (c)
      overnight courier; or (d) registered or certified, first class U.S. mail, return
      receipt requested.

    

    
      	
              To
                Guarantor:

            
	
              CRESA
                Partners of Orange County, LP, 

              a
                Delaware limited partnership

            
	
              610
                Newport Center Drive, Suite 500 

            
	
              Newport
                Beach, CA 92660

            
	 
	
              To
                Bank:

            
	
              FIRST
                REPUBLIC BANK

            
	
              Attn:
                Commercial Loan Operations

            
	
              111
                Pine Street

            
	
              San
                Francisco, CA 94111

            

    

    

    or
      at
      such other address as such party may designate by ten (10) days' advance written
      notice to the other party hereto pursuant to this section. Any notice, demand
      or
      request sent pursuant to subsection (c), above, shall be deemed received on
      the
      business day immediately following deposit with the overnight courier, and,
      if
      sent pursuant to subsection (d), above, shall be deemed received forty-eight
      (48) hours following deposit into the U.S. mail. 

    
      
         

      

      
        -41-

        
          

        

      

      
         

      

    

    

    (b)  No
      Waiver. No
      failure or delay by Bank or its assigns in exercising any right, power or
      privilege hereunder shall operate as a waiver thereof; nor shall any single
      or
      partial exercise thereof preclude any other or further exercise thereof or
      the
      exercise of any other right, power or privilege. 

    

    (c)  California
      Law. The
      validity, interpretation, enforcement of this Guaranty and the rights of the
      parties hereunder shall he determined under, governed by and construed in
      accordance with the laws of the State of California. The parties agree that
      all
      actions or proceedings arising in connection with this Guaranty shall be tried
      and litigated only in the state courts or federal court located in the County
      of
      San Francisco, State of California. Guarantor waives any right Guarantor may
      have to assert the doctrine of forum non conveniens or to object to such venue
      and hereby consents to any court-ordered relief.

    

    (d)  Advice
      of Counsel. Guarantor
      expressly declares that they know and understand the contents of this Guaranty
      and has had an opportunity to consult with an attorney regarding
      it.

    

    (e)  Attorneys'
      Fees. On
      demand, Guarantor shall reimburse Bank for all costs and expenses, including,
      without limitation, reasonable attorneys' fees costs and disbursements (and
      fees
      and disbursements of Bank's in-house counsel) (collectively the "Fees and
      Costs") expended or incurred by Bank in any way in connection with: (a) the
      amendment, interpretation and enforcement of this Guaranty; (b) collecting
      any
      sum which becomes due Bank; (c) any proceeding, or any appeal; or (d) the
      protection, preservation of enforcement of any rights of Bank under this
      Guaranty. Fees and Costs shall include, without limitation, attorneys Fees
      and
      Costs incurred in connection with the following: (1) contempt proceedings;
      (2)
      discovery; (3) any motion, adversary proceeding, contested matter, confirmation
      or opposition to plan of reorganization or any other activity of any kind in
      connection with a bankruptcy case or relating to any petition under Title 11
      of
      the United States Code; (4) garnishment, levy, and debtor and third party
      examinations; and (5) postjudgment motions and proceedings of any kind,
      including without limitation any activity taken to collection or enforce any
      judgment.

    

    (f)  Agreement
      Binding; Assignability. This
      Guaranty shall be binding and deemed effective when executed by Guarantor and
      accepted and executed by Bank. This Guaranty shall bind and inure to the benefit
      of the respective executors, administrators, successors and assigns of each
      of
      the parties. Guarantor may not assign this Guaranty or any rights hereunder
      without Bank's prior written consent and any prohibited assignment shall be
      void. No consent to an assignment by Bank shall release Guarantor from its
      obligations to Bank. Bank may assign, negotiate or grant participations in
      all
      or any part of Bank's rights and benefits hereunder. In connection therewith,
      Bank may disclose all documents and information which Bank now has or hereafter
      may have relating to Guarantor or Guarantor's business.

    

    (g)  Joint
      and Several. If
      more
      than one party signs this Guaranty, this Guaranty shall be binding jointly
      and
      severally on each such Guarantor and its assets.

    

    (h)  Captions.
      Headings
      have been set forth herein for convenience only and shall not affect the
      interpretation or meanings of any provisions of this Guaranty. Unless the
      contrary is compelled by the context, everything contained in each article
      and
      section applies equally to this entire Guaranty.

    

    (i)  Severability.
      Each
      provision of this Guaranty shall be severable from every other provision for
      the
      purpose of determining the legal enforceability of any specific
      provision.

    

    (j)  Further
      Assurances. Guarantor
      will promptly and duly execute and deliver to Bank such further documents and
      assurances and take such further action as Bank may from time to time reasonably
      request including, without limitation, any amendments hereto in order to
      establish and protect the rights, interests and remedies created or intended
      to
      be created in favor of Bank hereunder.

    
      
         

      

      
        -42-

        
          

        

      

      
         

      

    

    

    (k)  Cumulative
      Rights. Guarantor's
      liability and Bank's rights, powers, and remedies hereunder and under any other
      agreement now or hereafter relating hereto, shall be cumulative and not
      alternative, and such rights, powers, and remedies shall be in addition to
      all
      rights, powers, and remedies given to Bank by law. This Guaranty is in addition
      to and exclusive of the guaranty of any other guarantors of any indebtedness
      of
      Borrower to Bank.

    

    (l)  Construction.
      Neither
      this Guaranty nor any uncertainty or ambiguity herein shall be construed or
      resolved against Bank, whether under any rule of construction or otherwise.
      This
      Guaranty has been reviewed by all parties and shall be construed according
      to
      the ordinary meaning of the words used so as to fairly accomplish the purposes
      and intentions of all parties hereto.

    

    (m)  No
      Third Party Beneficiaries. This
      Guaranty is entered into for the sole protection and benefit of Bank, and its
      successors and assigns. No other person shall have any rights
      hereunder.

    

    (n)  No
      Waiver by Bank. No
      waiver
      by the Bank of any of its rights or remedies in connection with this Guaranty
      shall be effective unless such waiver is in writing and signed by the Bank.
      No
      act or omission by Bank to exercise a right as to any event shall be construed
      as continuing, or as a waiver or release of, any subsequent right, remedy or
      recourse as to a subsequent event.

    

    (o)  Integration.
      Except
      as
      to currently existing obligations of Guarantor to Bank, all prior agreements,
      understandings, representations, warranties, and negotiations between the
      parties whether written or oral, if any, are merged into this
      Guaranty.

    

    (p)  Destruction
      of Guarantor's Documents. Any
      documents, schedules, invoices or other papers delivered to Bank may be
      destroyed or otherwise disposed of by Bank six (6) months after they are
      delivered to or received by Bank unless Guarantor does request, in writing,
      the
      return of the said documents, schedule, invoices or other papers and makes
      arrangements, at Guarantor's expense, for their return.

    

    (q)  Separate
      Property. Any
      married person who signs this Guaranty expressly agrees that recourse may be
      had
      against his/her separate property for his or her obligations
      hereunder.

    

    (r)  Time
      of Essence. Time
      is
      of the essence of each provision of this Guaranty.

    

    (s)  Performance
      of Covenants. Guarantor
      shall perform all of its covenants under this Guaranty at its sole cost and
      expense.

    

    (t)  Term.
      This
      Guaranty shall continue in full force and effect as long as any of the
      Guaranteed Obligations are outstanding and until terminated by written agreement
      of Bank.

    

    (u)  Amendment.
      This
      Guaranty may be modified, amended or terminated only by a written agreement
      signed by Guarantor and Bank.

    
      
         

      

      
        -43-

        
          

        

      

      
         

      

    

    

    19.  Waiver
      of Jury Trial. BANK
      AND GUARANTOR HEREBY VOLUNTARILY, UNCONDITIONALLY AND IRREVOCABLY WAIVE, TO
      THE
      EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION ARBITRATION
      OR PROCEEDING IN A
      STATE
      OR FEDERAL COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS
      GUARANTY, OR THE OBLIGATIONS, OR ANY INSTRUMENT OR DOCUMENT DELIVERED IN
      CONNECTION WITH THIS GUARANTY, OR THE TRANSACTIONS CONTEMPLATED HEREBY, OR
      THE
      VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF, OR
      ANY
      OTHER CLAIM OR DISPUTE HOWSOEVER ARISING (INCLUDING TORT AND CLAIMS FOR BREACH
      OF DUTY), BETWEEN BANK AND GUARANTOR.

    

    IN
      WITNESS WHEREOF, the undersigned Guarantor have caused this Guaranty to be
      duly
      executed as of the day and year first above written.

    

    
      	
              Guarantor:

            
	
              CRESA
                Partners of Orange County, LP,

              a
                Delaware limited partnership

            
	 
	
              By:
                CRESA Partners-West, Inc.,

              a
                California corporation 

              Its:
                General Partner

            
	 
	
              By:
                /s/ Kevin John Hayes

            
	
              Kevin
                John Hayes, President

            

    

     

    -44-Exhibit 10.5 - Form of Limited Guaranty of Term Loan

    Exhibit
      10.5

    

    Loan
      No.: 21-410883-3

    

    LIMITED
      GUARANTY

    

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

    

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

    

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

    

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

    

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

    

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

    
      
         

      

      
        -45-

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

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

    

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

    
      
         

      

      
        -46-

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

    14.  Miscellaneous.

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

    

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

    

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

    

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

    

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

    

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

    
      
         

      

      
        -47-

        
          

        

      

      
         

      

    

    

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

    

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

    

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

    

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

    

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

    

    

    

    
      	
              Lender’s
                Address:

            	 	 	 
	 	 	 	 
	
              First
                Republic Bank

            	 	
               

            	 
	
              111
                Pine Street

            	 	
               

            	 
	
              San
                Francisco, CA 94111

            	 	 	 
	
              Attn:
                Commercial Loan Operations

            	 	 	 
	 	 	
               

            	 
	 	
              By:

            	
              Guarantor

            	 
	 	 	
               

            	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    

    

    -48-

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