Document:

Exhibit 10.1

 

G U A R A N T Y

 

WHEREAS, PARQUE INDUSTRIAL MEXICALI, S.A.
DE C.V., a Mexican Corporation
(hereinafter referred to as PIMSA)
is the owner of certain real property located in the Mexicali Industrial Park
I; and

 

WHEREAS,
this Guaranty is given by COASTCAST
CORPORATION (hereinafter referred to as the GUARANTOR) to induce PIMSA to enter into a Lease Agreement, with
COASTCAST CORPORATION, S.A., a
Mexican Corporation (hereinafter referred to as COMPANY), dated December 20, 2002, for the Leased Property
located upon Lots 1,2,3,4,5,6,7,8 and a portion of Lot
9 of Block 2 in the Mexicali Industrial Park I, Mexicali,
Baja California, Mexico.

 

NOW, THEREFORE,
in consideration of the foregoing, it is agreed:

 

1.             OBLIGATION
OF THE GUARANTOR.     The
GUARANTOR unconditionally
guarantees to PIMSA, its
successors and assigns, the prompt, full and complete payment and performance
to PIMSA of all of the conditions,
covenants, obligations, liabilities and agreements of COMPANY as set forth in the Lease
Agreement, attached hereto as Exhibit “A”
or any extension thereof between PIMSA and
COMPANY. This Guaranty extends to
and includes any and all interest due or to become due, together with all
attorneys’ fees, costs and expenses of 
collection incurred by PIMSA in
connection with the enforcement of this Guaranty and any rights hereunder. 

 

2.             TERM
OF GUARANTY.     The
liability of the GUARANTOR shall
continue until payment is made and performance given pursuant to every
obligation of the COMPANY now due
or hereafter to become due in accordance with the terms of the Lease Agreement
or any extension thereof, between PIMSA
and COMPANY, and until payment is
made of any loss or damage incurred by PIMSA
with respect to any matter covered by this Guaranty. This Guaranty shall be
irrevocable. Nothing contained herein shall impose upon GUARANTOR any greater or different
liability that is or may be imposed on said COMPANY
under the Lease Agreement except GUARANTOR’s
liability to pay PIMSA attorneys’
fees, costs and expenses of collection incurred in proceeding against GUARANTOR hereunder.

 

3.             CONSENT
TO PIMSA’S ACTS.     The GUARANTOR consents, without affecting the GUARANTOR’s liability to PIMSA hereunder, that PIMSA may, without notice to or consent of
the GUARANTOR, upon such terms as
it may deem advisable:

 

a)    Extend,
in whole or in part, by renewal or otherwise at any time of payment or
performance on the part of COMPANY,
provided for in the Lease Agreement;

 

 

b)    Release,
surrender, exchange, modify, impair or extend any period or duration, or any
time for performance, or payment on the part of COMPANY, required by the Lease Agreement; and

 

c)    Settle
or compromise any claim of PIMSA against
COMPANY or against any other
person, firm or corporation whose obligation is held by PIMSA as security for COMPANY’s obligation to PIMSA under the Lease Agreement.

 

The GUARANTOR
hereby ratifies and affirms any such extension renewal, release, surrender,
exchange, modification, impairment, settlement or compromise and all such acts
shall be binding upon GUARANTOR who
hereby waives all defenses, counterclaims or offsets which GUARANTOR might have solely by reason
thereof.

 

4.                                      WAIVER OF GUARANTOR.     GUARANTOR
waives:

 

a)    Notice
of acceptance of this Guaranty by PIMSA.

 

b)    Notice
of presentment, notice of nonperformance, notices of dishonor and notices of
the existence, creation or incurring of new or additional indebtedness or
obligations, demands for payment or performance or protest of any obligations
of COMPANY to PIMSA under the Lease Agreement;

 

c)    Notice
of the failure of any person, firm or corporation to pay to PIMSA any indebtedness held by PIMSA as collateral security for any
obligation of COMPANY to PIMSA under the Lease Agreement;

 

d)    Any
right to require PIMSA to (I)
proceed against COMPANY; (II)
proceed against or exhaust any security or other lien or right of or held by PIMSA from COMPANY; or (III) pursue any other remedy in the power of PIMSA whatsoever;

 

e)    Any
defenses, offsets or claims whatsoever which COMPANY
may have against PIMSA;

 

f)    Any
defenses, offsets or claims arising from any governmental action or
intervention which wholly or partially frustrates the performance of the Lease
Agreement by the COMPANY or
frustrates any or all of the purposes for which the Lease Agreement was entered
into;

 

2

 

g)    Any
defects in perfection of the assignment and pledge of the rents by failure to
record the Lease Agreement or any instrument of assignment and pledge in the
Public Registry under Mexican Law.

 

5.                                      REPRESENTATIONS BY GUARANTOR.     GUARANTOR
represents and warrants that neither the execution or the delivery of this
Agreement or the consummation hereof, nor the performance of the terms hereof
will conflict with or result in a breach of the terms, conditions or provisions
of, or constitute a default under or result in the creation of any lien
pursuant to any other agreement or instrument under which GUARANTOR is obligated.

 

6.                                      REMEDY OF PIMSA.     In
the event of any default on the part of COMPANY
as defined in the Lease Agreement, PIMSA
may at its option proceed in the first instance against GUARANTOR, jointly and severally, to
collect any obligation covered by this Guaranty, without first proceeding
against COMPANY or any other
person, firm or corporation and without first resorting to any property at any
time held by PIMSA as collateral
security.

 

7.                                      MODIFICATION OF AGREEMENT.     The
whole of this Guaranty is herein set forth and there is no verbal or other
written agreement and no understanding or custom affecting the terms hereof.
This Guaranty can be modified only by a written instrument signed by the party
to be charged therewith.

 

8.                                      NON-WAIVER BY PIMSA.     The
liability of GUARANTOR under this
Guaranty shall not be affected by the insolvency of COMPANY or PIMSA,
at any time or by the acceptance by PIMSA
of security, notes, acceptance, drafts or checks or by assignment, foreclosure
or other dispositions thereof by PIMSA,
at any time, or by PIMSA presenting
or proving for allowance any secured or unsecured claim or demand or by PIMSA’s acceptance of any composition, plan
of reorganization, settlement, compromise, dividend, payment or distributions;
and GUARANTOR shall not be
entitled to claim any right in or benefit by reason of, any such composition,
plan of reorganization, settlement, compromise, dividend, payment or
distribution, or in or by reason of any security held by PIMSA, or the proceeds or other disposition
thereof; unless and until all of said obligations, liabilities and
indebtedness, together with interest, attorneys' fees and costs due to PIMSA under this Guaranty or under the
Lease Agreement, shall have been paid in full. Nothing contained in this
Agreement shall alter any of the rights or remedies of PIMSA against COMPANY. GUARANTOR authorizes
PIMSA, without notice or demand
and without affecting the liability of
GUARANTOR hereunder, from time to time to:

 

3

 

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 under the
Lease Agreement, including increase or decrease of any amounts due thereunder
or any rate of interest specified therein;

 

b)    Take
and hold security for the payment of this Guaranty or the indebtedness
guaranteed, and exchange, enforce, waive, release, any such security;

 

c)    Apply
such security and direct the order or manner of sale thereof, as PIMSA in its discretion may determine; and 

 

d)    Release
or substitute any one or more of COMPANY or
GUARANTOR. PIMSA may assign this Guaranty in whole or
in part. GUARANTOR may assign this
Guaranty in whole or in part, provided that GUARANTOR
shall remain liable for its obligations hereunder unless released therefrom by PIMSA or its successors and provided
further that GUARANTOR shall first
give PIMSA sixty (60) days prior
written notice.

 

9.                                      APPLICABLE LAW.     This
Guaranty is entered into in the County of Imperial, State of California, and
the rights and obligations of the parties hereunder shall be construed and
enforced in accordance with the Laws of the State of California. The parties
further agree that in the event a dispute should arise as to the obligations of
either party hereto, the parties expressly waive the right to bring or remove
any action in or to the otherwise appropriate Federal District Court. Such
judicial actions shall be pursued exclusively in the appropriate State forum.

 

4

 

10.          MISCELLANEOUS
PROVISIONS.     GUARANTOR agrees
to pay to PIMSA a reasonable
attorneys’ fee and all other costs and expenses which may be incurred by PIMSA in the collection or efforts to
collect the indebtedness owed by COMPANY
to PIMSA pursuant to the Lease
Agreement or in the collection or efforts to collect  or enforcement of the sums due under this Guaranty, provided
that if GUARANTOR is the
prevailing party in any action or proceeding to enforce this Guaranty or collect
any amounts allegedly due hereunder, PIMSA
shall pay GUARANTOR a reasonable
attorneys’ fee and other costs and expenses which may be incurred by GUARANTOR. The paragraph headings of this
Guaranty are not part of this Guaranty and shall have no effect upon the
construction and interpretation of any part hereof and are inserted herein for
convenience only. In the event that any provision hereof or any portion of any
provision hereof shall be deemed to be invalid or unenforceable, such
invalidity or unenforceability shall not affect any other portion of said
provision or any other provision herein. All remedies herein conferred upon PIMSA shall be cumulative and no one
exclusive of any other remedy conferred herein or by law or equity. Time is of
the essence in the performance of each and every obligation herein imposed.

 

11.          ACKNOWLEDGEMENT
OF ASSIGNMENT.     In the event this
Guaranty is assigned to a bank or other lending institution, the GUARANTOR shall furnish to such entity a
letter stating that the GUARANTOR
acknowledges receipt of notice of an assignment by PIMSA of said Guaranty; that said Guaranty is in full force
and effect; that no changes to the Guaranty as originally executed have been
made; that the GUARANTOR will not
enter into any modification of this Guaranty without first obtaining prior
written approval thereof from said lender; that said lender may rely solely
upon the Guaranty with respect to the lender’s right to receive the rents in
accordance with the terms of the Lease Agreement; and that all payments made
thereafter shall be made to the lender or its assigns at such times not in
conflict with those permissible under the Lease Agreement, at such places
within the United States of America or United States of Mexico and/or in United
States Dollars as directed by the lender or its assigns.

 

12.          NOTICE
OF DEFAULT.     Notwithstanding any
provision to the contrary herein expressed or implied, no claim of default on
the part of COMPANY or on the part
of GUARANTOR shall be made
hereunder unless and until notice of such defaults has been given to COMPANY as provided in the Lease Agreement
and a copy thereof mailed to GUARANTOR by
first class certified or registered mail, postage prepaid at: COASTCAST CORPORATION, 3025 East Victoria Street, Rancho Dominguez,
California 90221, Attention: MR. HANS H. BUEHLER, President.

 

5

 

13.          SUCCESSORS
BOUND.     This
Guaranty is binding upon GUARANTOR,
its successors and assigns and shall inure to the benefit of PIMSA, its successors and assigns.

 

14.          INTERPRETATION.     In
this Guaranty in all matters of interpretation, whenever necessary to give
effect to any provisions of this Guaranty, the masculine shall include the
feminine and the neuter and visa versa, singular shall include the plural, and
the plural shall include the singular.

 

15.          FINANCIAL
STATEMENTS.     GUARANTOR
shall provide an annual audited or reviewed financial statement at PIMSA’s request.  An audited statement shall be prepared in accordance with generally
accepted auditing standards and a reviewed statement shall be prepared in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants. PIMSA shall make best efforts to require
statements that reflect GUARANTOR’s
position consistent with its fiscal year.

 

IN WITNESS WHEREOF, GUARANTOR
has signed this Agreement as of the 28th day of MARCH 2003.

 

 

	
   

  	
  “GUARANTOR”

  
	
   

  	
   

  
	
     

  	
  By

  	
  :

  	
  /s/ Hans H. Buehler

  
	
   

  	
  Its

  	
  :

  	
  CEO

  

 

 

	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By     :

  	
  /s/ Norman Fujitaki

  	
   

  
	
  Its     :

  	
  CFO

  	
   

  

 

6Exhibit 10.2

 

G U A R A N T Y

 

 

WHEREAS, PARQUE
INDUSTRIAL MEXICALI, S.A. DE C.V., a Mexican Corporation (hereinafter referred to as PIMSA) is the owner of certain real
property located in the Mexicali Industrial Park I; and

 

WHEREAS, this Guaranty is given by COASTCAST CORPORATION (hereinafter referred
to as the GUARANTOR) to induce PIMSA to enter into a Lease Agreement, with
COASTCAST CORPORATION, S.A., a
Mexican Corporation (hereinafter referred to as COMPANY), dated December 20, 2002, for the Leased Property
located upon Lots 5, 6, 7, 8 and a portion of Lots 4 and 9 of Block 5 in the
Mexicali Industrial Park I, Mexicali, Baja California, Mexico.

 

NOW, THEREFORE, in consideration of the foregoing, it is agreed:

 

1.                                     OBLIGATION OF THE GUARANTOR.     The
GUARANTOR unconditionally
guarantees to PIMSA, its
successors and assigns, the prompt, full and complete payment and performance
to PIMSA of all of the conditions,
covenants, obligations, liabilities and agreements of COMPANY as set forth in the Lease Agreement,
attached hereto as Exhibit “A” or
any extension thereof between PIMSA
and COMPANY.  This Guaranty extends to and includes any
and all interest due or to become due, together with all attorneys’ fees, costs
and expenses of collection incurred by PIMSA
in connection with the enforcement of this Guaranty and any rights hereunder.

 

2.                                      TERM
OF GUARANTY.     The liability of the GUARANTOR shall continue until payment is made and performance
given pursuant to every obligation of the COMPANY
now due or hereafter to become due in accordance with the terms of
the Lease Agreement or any extension thereof, between PIMSA and COMPANY,
and until payment is made of any loss or damage incurred by PIMSA with respect to any matter covered by
this Guaranty.  This Guaranty shall be
irrevocable.  Nothing contained herein
shall impose upon GUARANTOR any
greater or different liability that is or may be imposed on said COMPANY under the Lease Agreement except GUARANTOR’s liability to pay PIMSA attorneys’ fees, costs and expenses
of collection incurred in proceeding against GUARANTOR
hereunder. 

 

3.                                      CONSENT
TO PIMSA’S ACTS.     The GUARANTOR consents,
without affecting the GUARANTOR’s
liability to PIMSA hereunder, that
PIMSA may, without notice to or
consent of the GUARANTOR, upon
such terms as it may deem advisable:

 

a)    Extend, in whole or in part, by renewal or otherwise
at any time of payment or performance on the part of COMPANY, provided for in the Lease Agreement;

 

 

b)    Release, surrender, exchange, modify, impair or extend
any period or duration, or any time for performance, or payment on the part of COMPANY, required by the Lease Agreement;
and

 

c)    Settle or compromise any claim of PIMSA against COMPANY or against any other person, firm or corporation whose
obligation is held by PIMSA as
security for COMPANY’s obligation
to PIMSA under the Lease
Agreement.

 

The GUARANTOR
hereby ratifies and affirms any such extension renewal, release, surrender,
exchange, modification, impairment, settlement or compromise and all such acts
shall be binding upon GUARANTOR who
hereby waives all defenses, counterclaims or offsets which GUARANTOR might have solely by reason
thereof.

 

4.                                      WAIVER
OF GUARANTOR.    GUARANTOR waives:

 

a)    Notice of acceptance of this Guaranty by PIMSA.

 

b)    Notice of presentment, notice of nonperformance,
notices of dishonor and notices of the existence, creation or incurring of new
or additional indebtedness or obligations, demands for payment or performance
or protest of any obligations of COMPANY
to PIMSA under the Lease
Agreement;

 

c)    Notice of the failure of any person, firm or
corporation to pay to PIMSA any
indebtedness held by PIMSA as
collateral security for any obligation of COMPANY
to PIMSA under the Lease
Agreement;

 

d)    Any right to require PIMSA to (I) proceed against COMPANY;  (II) proceed against or exhaust any security
or other lien or right of or held by PIMSA
from COMPANY; or (III) pursue any
other remedy in the power of PIMSA
whatsoever;

 

e)    Any defenses, offsets or claims whatsoever which COMPANY may have against PIMSA;

 

f)    Any defenses, offsets or claims arising from any
governmental action or intervention which wholly or partially frustrates the
performance of the Lease Agreement by the COMPANY
or frustrates any or all of the purposes for which the Lease Agreement was
entered into;

 

2

 

g)    Any defects in perfection of the assignment and
pledge of the rents by failure to record the Lease Agreement or any instrument
of assignment and pledge in the Public Registry under Mexican Law.

 

5.                                      REPRESENTATIONS
BY GUARANTOR.    GUARANTOR represents and warrants that neither the execution
or delivery of this Agreement or the consummation hereof, nor the performance
of the terms hereof will conflict with or result in a breach of the terms,
conditions or provisions of, or constitute a default under or result in the
creation of any lien pursuant to any other agreement or instrument under which GUARANTOR is obligated.

 

6.             REMEDY OF PIMSA.     In the event of any default on the part of COMPANY as defined in the Lease Agreement, PIMSA may at its option proceed in the
first instance against GUARANTOR,
jointly and severally, to collect any obligation covered by this Guaranty,
without first proceeding against COMPANY
or any other person, firm or corporation and without first resorting to any
property at any time held by PIMSA
as collateral security.

 

7.                                      MODIFICATION
OF AGREEMENT.     The whole of this Guaranty is herein set forth and
there is no verbal or other written agreement and no understanding or custom
affecting the terms hereof.  This
Guaranty can be modified only by a written instrument signed by the party to be
charged therewith.

 

8.                                      NON-WAIVER
BY PIMSA.     The liability of GUARANTOR
under this Guaranty shall not be affected by the insolvency of COMPANY or PIMSA, at any time or by the acceptance by PIMSA of security, notes, acceptance,
drafts or checks or by assignment, foreclosure or other dispositions thereof by
PIMSA, at any time, or by PIMSA presenting or proving for allowance
any secured or unsecured claim or demand or by PIMSA’s acceptance of any composition, plan of reorganization,
settlement, compromise, dividend, payment or distributions; and GUARANTOR shall not be entitled to claim
any right in or benefit by reason of, any such composition, plan of
reorganization, settlement, compromise, dividend, payment or distribution, or
in or by reason of any security held by PIMSA,
or the proceeds or other disposition thereof; unless and until all of said
obligations, liabilities and indebtedness, together with interest, attorneys’
fees and costs due to PIMSA under
this Guaranty or under the Lease Agreement, shall have been paid in full.  Nothing contained in this Agreement shall
alter any of the rights or remedies of PIMSA
against COMPANY.  GUARANTOR
authorizes PIMSA, without notice
or demand and without affecting the liability of GUARANTOR hereunder, from time to time to:

 

3

 

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 under the Lease Agreement, including increase
or decrease of any amounts due thereunder or any rate of interest specified
therein;

 

b)    Take and hold security for the payment of this
Guaranty or the indebtedness guaranteed, and exchange, enforce, waive, release,
any such security;

 

c)    Apply such security and direct the order or manner of
sale thereof, as PIMSA in its
discretion may determine; and 

 

d)    Release or substitute any one or more of COMPANY or GUARANTOR.  PIMSA may assign this Guaranty in whole or
in part. GUARANTOR may assign this
Guaranty in whole or in part, provided that GUARANTOR
shall remain liable for its obligations hereunder unless released therefrom by PIMSA or its successors and provided
further that GUARANTOR shall first
give PIMSA sixty (60) days prior
written notice.

 

9.                                      APPLICABLE
LAW.     This
Guaranty is entered into in the County of Imperial, State of California, and
the rights and obligations of the parties hereunder shall be construed and
enforced in accordance with the Laws of the State of California.  The parties further agree that in the event
a dispute should arise as to the obligations of either party hereto, the
parties expressly waive the right to bring or remove any action in or to the
otherwise appropriate Federal District Court. 
Such judicial actions shall be pursued exclusively in the appropriate
State forum.

 

4

 

10.                               MISCELLANEOUS
PROVISIONS.     GUARANTOR agrees to pay to PIMSA
a reasonable attorneys’ fee and all other costs and expenses which may be
incurred by PIMSA in the
collection or efforts to collect the indebtedness owed by COMPANY to PIMSA pursuant to the Lease Agreement or in the collection or
efforts to collect or enforcement of the sums due under this Guaranty, provided
that if GUARANTOR is the
prevailing party in any action or proceeding to enforce this Guaranty or
collect any amounts allegedly due hereunder, PIMSA
shall pay GUARANTOR a reasonable
attorneys’ fee and other costs and expenses which may be incurred by GUARANTOR. 
The paragraph headings of this Guaranty are not part of this Guaranty
and shall have no effect upon the construction and interpretation of any part
hereof and are inserted herein for convenience only.  In the event that any provision hereof or any portion of any
provision hereof shall be deemed to be invalid or unenforceable, such
invalidity or unenforceability shall not affect any other portion of said
provision or any other provision herein. 
All remedies herein conferred upon PIMSA
shall be cumulative and no one exclusive of any other remedy conferred herein
or by law or equity.  Time is of the
essence in the performance of each and every obligation herein imposed.

 

11.          ACKNOWLEDGEMENT OF ASSIGNMENT.     In the event this Guaranty is assigned to a bank or
other lending institution, the GUARANTOR
shall furnish to such entity a letter stating that the GUARANTOR acknowledges receipt of notice of
an assignment by PIMSA of said
Guaranty; that said Guaranty is in full force and effect; that no changes to
the Guaranty as originally executed have been made; that the GUARANTOR will not enter into any
modification of this Guaranty without first obtaining prior written approval
thereof from said lender; that said lender may rely solely upon the Guaranty
with respect to the lender’s right to receive the rents in accordance with the
terms of the Lease Agreement; and that all payments made thereafter shall be
made to the lender or its assigns at such times not in conflict with those
permissible under the Lease Agreement, at such places within the United States
of America or United States of Mexico and/or in United States Dollars as
directed by the lender or its assigns.

 

12.          NOTICE OF DEFAULT.     Notwithstanding any provision to the contrary herein
expressed or implied, no claim of default on the part of COMPANY or on the part of GUARANTOR shall be made hereunder unless
and until notice of such defaults has been given to COMPANY as provided in the Lease Agreement and a copy thereof
mailed to GUARANTOR by first class
certified or registered mail, postage prepaid at: COASTCAST CORPORATION, 3025 East Victoria Street, Rancho Dominguez,
California 90221, Attention:  MR. HANS
H. BUEHLER, President.

 

5

 

13.          SUCCESSORS BOUND.     This Guaranty is binding upon GUARANTOR, its successors and assigns and
shall inure to the benefit of PIMSA,
its successors and assigns.

 

14.          INTERPRETATION.     In this Guaranty in all matters of interpretation,
whenever necessary to give effect to any provisions of this Guaranty, the
masculine shall include the feminine and the neuter and visa versa, singular
shall include the plural, and the plural shall include the singular.

 

15.          FINANCIAL STATEMENTS.     GUARANTOR shall provide an annual audited or reviewed
financial statement at PIMSA’s
request.  An audited statement shall be
prepared in accordance with generally accepted auditing standards and a
reviewed statement shall be prepared in accordance with Statements on Standards
for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. PIMSA
shall make best efforts to require statements that reflect GUARANTOR’s position consistent with its
fiscal year.

 

IN WITNESS WHEREOF,
GUARANTOR has
signed this Agreement as of the 28th day of MARCH 2003.

 

 

	
   

  	
   

  	
  “GUARANTOR”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
  :

  	
  /s/ Hans H. Buehler

  
	
  Its

  	
  :

  	
  CEO

  

 

 

	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By    
  :

  	
  /s/ Norman Fujitaki

  	
   

  
	
  Its    
  :

  	
  CFO

  	
   

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]