Document:

Exhibit 10.6 - Loan Agreement Line of Credit

    Exhibit
      10.6

    LOAN
      AGREEMENT

    

    (LINE
      OF CREDIT)

    

    

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

    

    A.  Borrower
      has requested a line of credit loan in the original principal amount of
Five
      Hundred Thousand and 00/100 Dollars ($500,000.00) (referred
      to as the "Loan" or the "Line of Credit Loan") from the Lender for the purposes
      set forth in this Agreement.

    

    B.  Borrower
      and the Lender desire to enter into this Agreement to establish certain terms
      and conditions relating to the Loan.

    THEREFORE,
      for valuable consideration, Borrower and the Lender agree as
      follows:

    

    

    ARTICLE
      1

    

    DEFINITIONS

    

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

    

    1.1
      Borrower's
      Application. "Borrower's
      Application" means the written application, if
      any, and
      all
      financial statements and other information submitted by Borrower to the Lender
      in connection with the Lender's approval of the Loan.

    

    1.2
      Business
      Day. "Business
      Day" means any day other than a day on which commercial banks in California
      are
      authorized or required by law to close.

    

    1.3
      Collateral.
      "Collateral"
      means
      all
      real and personal property, if
      any, of
      Borrower or any third Person now or hereafter securing all or any part of the
      Obligations.

    

    1.4
      Commitment.
      "Commitment"
      means an amount equal to the original principal face amount of the
      Note.

    

    1.5
      Default.
      "Default"
      means any event which, with notice or passage of time or both, would constitute
      an Event of Default.

    

    1.6
      Event
      of Default "Event
      of
      Default" means the Lender's declaration by written notice to Borrower of a
      default by Borrower under the Loan Documents based on the occurrence of one
      or
      more of the events described in Section 4.1 of this Agreement.

    

    1.7
      Governmental
      Authorities. "Governmental
      Authorities" means (a) the United States; (b) the state, county, city or other
      political subdivision in which any of the Collateral is located; (c) all other
      governmental or quasi-governmental authorities, boards, bureaus, agencies,
      commissions, departments, administrative tribunals, instrumentalities and
      authorities; and (d) all judicial authorities and public utilities having or
      exercising jurisdiction over Borrower or the Collateral. The term "Governmental
      Authority" means any one of the Governmental Authorities.

    

    1.8
      Governmental
      Permits. "Governmental
      Permits" means all permits, approvals, licenses, and authorizations now or
      hereafter issued by any Governmental Authorities for or in connection with
      the
      conduct of Borrower's business or the ownership or use by Borrower of the
      Collateral or any of its other assets.

    

    1.9
      Governmental
      Requirements. "Governmental
      Requirements" means all existing and future laws, ordinances, rules,
      regulations, orders, and requirements of all Governmental Authorities applicable
      to Borrower, the Collateral or any of Borrower's other assets.

    

    
      
         

      

      
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    1.10
      Guaranties.
      "Guaranties"
      means, collectively, (a) the Continuing Guaranties of Payment and Performance
      and all other guaranty agreements of any kind, if
      any, now
      or
      hereafter executed by the Guarantors, and all extensions,
      renewals, modifications and replacements of any or all of such documents; and
      (b) any pledge of or grant of security interest in any certificate of deposit,
      account, stock, securities, bonds, or other property or asset of any kind,
      if
      any, now
      or
      hereafter executed by any third Person to secure any or all of the Obligations,
      and all extensions, renewals, modifications and replacements of any or all
      of
      such documents (collectively, the "Third Party Pledge Agreements").

    

    1.11
      Guarantors.
      "Guarantors"
      means, collectively, (a) the Person or Persons, if
      any, now
      or
      hereafter guaranteeing payment of the Note or payment or performance of any
      or
      all of the other Obligations, including the Persons, if any,
      identified
      as guarantors in the Loan Schedule; and (b) the Person or Persons, if
      any, now
      or
      hereafter entering into any of the Third Party Pledge Agreements to secure
      any
      or all of the Obligations.

    

    1.12
      Line
      of Credit Advance. "Line
      of
      Credit Advance" means each advance of principal under the Note made by the
      Lender to or for the benefit of Borrower pursuant to a Request for Advance
      or
      otherwise.

    

    1.13
      Loan
      Closing. "Loan
      Closing" or "Closing Date" means the earlier of the first date on which all
      or
      any part of the proceeds of the Loan are initially disbursed by the Lender
      to or
      for the benefit of Borrower.

    

    1.14
      Loan
      Documents. "Loan
      Documents" means the Note, Security Agreements, Guaranties, Third Party Pledge
      Agreements, this Agreement, all other documents now or hereafter executed by
      Borrower and any of the Guarantors, respectively, and delivered to the Lender
      at
      the Lender's request in connection with the Loan, and all extensions, renewals,
      modifications and replacements of any or all of such documents.

    

    1.15
      Loan
      Fee.
      "Loan
      Fee" means the Loan fee specified in Section 5 of the Loan Schedule which shall
      be payable by Borrower to the Lender prior to or on the Loan
      Closing.

    

    1.16
      Loan
      Schedule. "Loan
      Schedule" means the Loan Schedule attached to this Agreement as
      Exhibit

    

    1.17
      Maturity
      Date. "Maturity
      Date" means the stated maturity date of the Note.

    

    1.18
      Note. "Note"
      means (a) the promissory note dated the same date as this Agreement executed
      by
      Borrower evidencing the Loan and all extensions, renewals, modifications and
      replacements of such promissory note; and (b) any additional note or notes
      now
      or hereafter executed by Borrower in favor of the Lender which specifically
      recite that they arise out of this Agreement, and all extensions, renewals,
      modifications and replacements of any or all of such note or notes.

    

    1.19
      Obligations.
      "Obligations"
      means all debts, obligations, and liabilities of Borrower to the Lender
      currently existing or hereafter made, incurred or created, whether voluntary
      or
      involuntary, and however arising or evidenced, whether direct or acquired by
      the
      Lender by assignment or succession, whether due or not due, absolute or
      continent, liquidated or unliquidated, determined or undetermined, whether
      under
      this Agreement, the Note, any of the other Loan Documents, or otherwise, and
      whether Borrower may be liable individually or jointly, or whether recovery
      upon
      such debt may be or become barred by any statute of limitations or otherwise
      unenforceable, including all attorneys' fees and costs now or hereafter payable
      by Borrower to the Lender under the Loan Documents or in connection with the
      collection and enforcement of such debts, obligations and liabilities.
      Notwithstanding anything to the contrary contained in this Agreement, this
      Agreement shall not secure and the term "Obligations shall not include, any
      debts that are or may hereafter constitute "consumer credit" which is subject
      to
      the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C.
      Section 1601, et
      seq.) or
      any
      similar state law in effect from time to time, unless the Lender and Borrower
      shall otherwise agree in a separate written agreement.

    

    
      
         

      

      
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    1.20
      Person.
      "Person"
      means any natural person or any entity, including any corporation, partnership,
      joint venture, trust, limited liability company, unincorporated organization,
      trustee, or Governmental Authority.

    

    1.21
      Personal
      Property Security Agreements. "Personal
      Property Security Agreement" or "Personal Property Security Agreements" means,
      collectively, any and all personal security agreements, pledge agreements,
      and
      Third Party Pledge Agreements, if
      any, now
      or
      hereafter executed by Borrower or any other Person pursuant to which Borrower
      or
      such Person grants a personal property security interest to the Lender to secure
      any or all of the Obligations, and all extensions, renewals, modifications
      and
      replacements of any or all of such documents.

    

    1.22
      Real
      Property Security Instruments. "Real
      Property Security Instrument" or "Real Property Security Instruments" means,
      collectively, any and all deeds of trust and mortgages, if
      any
now
      or
      hereafter executed by Borrower or any other Person pursuant to which Borrower
      or
      such Person grants a lien on real property to the Lender to secure any or all
      of
      the Obligations, and all extensions, renewals, modifications and replacements
      of
      any or all of such documents.

    

    1.23
      Request
      for Advance. "Request
      for Advance" means a written or telephonic request (or other form of request
      acceptable to the Lender) for an advance of principal under the Line of Credit
      Note submitted by Borrower to the Lender pursuant to this
      Agreement.

     

    1.24
      Security
      Agreements. "Security
      Agreements" means, collectively, the Personal Property Security Agreements
      and
      Real Property Security Instruments.

    

    1.25
      Other
      Terms. All
      accounting terms with an initial capital letter that are used but not defined
      in
      this Agreement shall have the respective meanings given to such terms in
      accordance with generally accepted accounting principles, consistently
      applied.

    

    

    ARTICLE
      2 

    

    DISBURSEMENT
      OF LOAN PROCEEDS 

    

    2.1
      Line
      of Credit. The
      Lender agrees, on the terms and conditions contained in this Agreement and
      the
      other Loan Documents, to make a line of credit Loan to Borrower during the
      period from the Closing Date up to but not including the Maturity Date in the
      aggregate principal amount not to exceed at any time outstanding the amount
      of
      the Commitment.

    

    2.2
      Use
      of Loan Proceeds. All
      Loan
      proceeds received by Borrower shall be used by Borrower solely for payment
      of
      those costs, charges, and other items shown in the Loan Disbursement
      Instructions executed by Borrower in connection with the Loan, general working
      capital purposes in the ordinary course of Borrower's business, and any other
      use specified in the Loan Schedule. The Lender shall have no obligation to
      monitor or verify the use or application of any Loan proceeds disbursed by
      the
      Lender. Borrower shall not, directly or indirectly, use all or any part of
      the
      Loan proceeds for the purpose of purchasing or carrying any margin stock within
      the meaning of Regulation U of the Board of Governors of the Federal Reserve
      System (the "Board of Governors") or to extend credit to any Person for the
      purpose of purchasing or carrying any such margin stock or for any purpose
      which
      violates or is inconsistent with Regulation X of the Board of Governors, unless
      such use has been expressly approved in writing by the Lender, in its
      discretion.

    

    2.3
      Initial
      Loan Fee. Concurrently
      with or prior to the Closing Date, Borrower shall pay to the Lender the Loan
      Fee
      specified in the Loan Schedule. The entire Loan Fee shall be deemed to be fully
      earned by the Lender as of the Loan Closing, and no part of the Loan Fee shall
      be refundable to Borrower, whether or not the principal balance of the Loan
      is
      prepaid prior to the Maturity Date.

    

    2.4
      Requests
      for Advances Under Line of Credit. Each
      Request for Advance shall indicate the proposed date for the Line of Credit
      Advance requested by Borrower in the Request for Advance (which date shall
      be
      acceptable to the Lender and is referred to as the "Advance Date"). Each Request
      for Advance shall be satisfactory to the Lender in form and substance. Each
      Advance Date shall be a Business Day. Provided that no Default or Event of
      Default has occurred and is continuing, not later than 4 P.M. Pacific Standard
      Time on the Advance Date, the Lender shall make the Line of Credit Advance
      available to Borrower in immediately available funds by deposit or credit to
      an
      account in Borrower's name established or to be established at one of the
      Lender's offices, by check payable directly to Borrower or to a payee designated
      by Borrower, or by such other method as may be designated by the Lender, as
      designated by the Lender.

    

    
      
         

      

      
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    2.5
      Reliance
      by Lender. The
      Lender may conclusively presume that all requests, statements, information,
      certifications, and representations, whether written or oral, submitted or
      made
      by Borrower or any of its agents to the Lender in connection with the Loan
      are
      true and correct, and the Lender shall be entitled to rely thereon, without
      investigation or inquiry of any kind by the Lender, in disbursing the Loan
      proceeds and taking or refraining from taking any other action in connection
      with the Loan. Without limiting the generality of this Section, Borrower
      acknowledges and agrees that (a) it is in the best interest of Borrower that
      the
      Lender respond to and be entitled to rely upon Requests for Advances that are
      given by Borrower in writing, by telephone, or by other telecommunication method
      acceptable to the Lender without the Lender having to inquire into the actual
      authority of the Person making such request and purporting to act on behalf
      of
      Borrower; (b) therefore, the Lender may conclusively rely on any and all
      Requests for Advances (whether made in writing, by telephone, or by other
      telecommunication method) made by (i) any Person who purports to be one of
      the
      agents of Borrower who has been authorized to act for Borrower in any resolution
      or other form of authorization of any kind delivered to the Lender (a "Borrower
      Authorization"); and (ii) any other Person who the Lender in good faith believes
      to be authorized to act for Borrower (notwithstanding the fact that such other
      Person is not identified in any Borrower Authorization); and (c) Borrower
      assumes all risks arising out of any lack of actual authority by any Person
      submitting any form of Request for Advance (whether made in writing, by
      telephone, or by other telecommunication method) to the Lender and the Lender's
      reliance on such Request for Advance.

     

    ARTICLE
      3 

    

    BORROWER'S
      COVENANTS 

    

    3.1
      Existence
      of Borrower. If
      Borrower is a corporation or other form of entity, Borrower shall maintain
      its
      existence in good standing under the laws of the state in which it is organized
      and maintain its qualification as a foreign entity in good standing in each
      jurisdiction in which the nature of its business requires qualification as
      a
      foreign entity and where the failure to qualify would have a material adverse
      effect on Borrower's business.

    

    3.2
      Books
      and Records; Inspections by Lender. Borrower
      shall keep and maintain complete and accurate books and records relating to
      it
      business at its principal place of business. The Lender shall have access to
      such books and records at all reasonable times upon not less than two (2)
      Business Days prior written notice to Borrower for the purposes of examination,
      inspection, verification, copying and for any other reasonable purpose. Borrower
      authorizes the Lender, at its option but without any obligation of any kind
      to
      do so, to discuss the affairs,
      finances and accounts of Borrower with any of its officers and directors and
      with Borrower's independent accountants and auditors, and Borrower irrevocably
      authorizes all accountants and auditors employed or retained by Borrower to
      respond to and answer all requests from the Lender for financial and other
      information regarding Borrower. Borrower waives the benefit of any
      accountant-client privilege or other evidentiary privilege precluding or
      limiting the disclosure or delivery of any of its books and records to the
      Lender (except that Borrower does not waive any attorney-client
      privilege).

    

    3.3
      Reports.
      Without
      limiting any of the other terms of the Loan Documents, from time to time within
      ten (10) Business Days after the Lender's written reasonable request to
      Borrower, Borrower shall deliver to the Lender such reports and information
      available to Borrower concerning the business, financial condition and affairs
      of Borrower and each Guarantor as the Lender may reasonably
      request.

    

    3.4
      Payment
      of Obligations; Compliance with Financial Covenants. Borrower
      shall pay all of its indebtedness under the Note and pay and perform all of
      its
      other Obligations under the Loan Documents as and when the same become due.
      Without limiting the generality of the immediately preceding sentence, Borrower
      shall comply with all of the financial covenants, if
      any, contained
      in Section 6 of the Loan Schedule (the "Financial Covenants") and the other
      terms set forth in the Loan Schedule.

    

    3.5
      Notice
      of Material Adverse Changes. Borrower
      shall immediately notify the Lender in writing of (a) any material adverse
      change in the financial condition of Borrower or any Guarantor; (b) any material
      adverse change in the Collateral; (c) any claim, proceeding, litigation or
      investigation in the future threatened or instituted by or against Borrower
      involving any claim or claims which, individually or in the aggregate, may
      cause
      or result in a material adverse change in the financial condition or business
      of
      Borrower or any material impairment in the ability of Borrower to carry on
      its
      business in substantially the same manner as it is now being conducted; and
      (d)
      any occurrence which could form the basis of an Event of Default.

    

    3.6
      Further
      Assurances. Upon
      Lender's request, Borrower, at Borrower's expense, shall: (i) execute (or
      re-execute) and deliver such further documents and notices satisfactory to
      Lender and take any action requested by Lender to carry out the intent of this
      Agreement and the other Loan Documents; and (ii) provide such reports and
      information available to Borrower concerning its business and financial
      condition.

    

    3.7
      Claims.
      Borrower
      shall pay when due all claims which, if unpaid, might become a lien or charge
      on
      any or all of the properties or assets of Borrower.

    

    3.8
      Taxes. Borrower
      shall pay when due all foreign, federal, state and local taxes, assessments,
      and
      governmental charges now or hereafter levied upon or against Borrower or any
      of
      its properties or assets, including all income, franchise, personal property,
      real property, excise, withholding, sales and use taxes.

    

    
      
         

      

      
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    3.9
      Contest.
      Borrower
      shall have the right to contest the payment of any tax, assessment, charge
      or
      claim referred to in Section 3.7 or 3.8 above, provided that (a) appropriate
      contest proceedings are promptly and in good faith commenced and diligently
      prosecuted by Borrower; (b) a bond is posted or other appropriate action
      reasonably acceptable to the Lender is taken to prevent such tax, assessment,
      charge or claim from becoming a lien on the properties and assets of Borrower;
      and (c) Borrower notifies the Lender in writing of the commencement of, and
      any
      material development in, such proceedings.

     

    3.10
      Pension
      Plans. Borrower
      shall pay all amounts necessary to fund all of its present and future employee
      benefit plans in accordance with their terms, and Borrower shall not permit
      the
      occurrence of any event with respect to any such plan which would result in
      any
      liability of Borrower, including any liability to the Pension Benefit Guaranty
      Corporation or any other Governmental Authority.

    3.11
      Insurance.
      Borrower
      shall maintain insurance against such risks and liabilities, in such forms,
      and
      for such amounts as are customarily maintained by entities engaged in the same
      or similar businesses and similarly situated. The form and substance of all
      such
      insurance policies shall be reasonably acceptable to the Lender. Such insurance
      shall be maintained with financially sound and reputable insurers reasonably
      acceptable to the Lender. Upon the Lender's request, Borrower shall provide
      the
      Lender with evidence satisfactory to the Lender regarding the maintenance of
      the
      insurance required by this Section, including proof of premium payments and
      copies of insurance policies, certificates of insurance, and endorsements.
      If
      Borrower fails to provide or pay for any policies of insurance required by
      this
      Section, the Lender, at its option and in its discretion, but without any
      obligation of any kind to do so, shall have the right to obtain the same at
      Borrower's expense.

     

    3.12
      Maintenance
      of Properties. Borrower
      shall maintain its properties in good condition and repair.

    

    3.13
      Licenses.
      Borrower
      shall maintain all Governmental Permits necessary for the ownership of it
      properties and the conduct of its businesses.

    

    3.14
      Compliance
      with Applicable Laws. Borrower
      shall at all times comply with and keep in effect all Governmental Permits
      relating to Borrower, the Collateral, and Borrower's other assets. Borrower
      shall at all times comply with, and shall cause the Collateral to comply with
      (a) air Governmental Requirements, including all Hazardous Substance Laws;
      (b)
      all requirements and orders of all judicial authorities which have jurisdiction
      over Borrower or the Collateral; and (c) all covenants, conditions, restrictions
      and other documents relating to Borrower or the Collateral.

    

    3.15
      Place
      of
      Business; Borrower's Name. Borrower
      shall give the Lender at least thirty (30) days prior written notice of any
      change in the location of Borrower's chief executive office. Borrower shall
      give
      the Lender not less than thirty (30) days prior written notice before changing
      its name or doing business under any other name. Borrower has complied, and
      will
      in the future comply, with all Governmental Requirements relating to the conduct
      of Borrower's business under a fictitious business name.

    

    3.16
      Annual
      Financial Statements. Within
      the time period set forth in the Loan Schedule after the close of Borrower's
      fiscal year, Borrower shall deliver to the Lender a balance sheet and a
      statement of profit and loss for Borrower for such fiscal year. Borrower shall
      cause all financial statements furnished to the Lender under this Agreement
      to
      be certified by the party to whom such statements apply. All annual financial
      statements furnished to the Lender under this Section shall comply with the
      requirements of Section 7.1 of the Loan Schedule.

    

    3.17
      Quarterly/Monthly
      Financial Statements. If
      specifically required by the Lender in the Loan Schedule or at any time after
      the Loan Closing, (a) within forty-five (45) days after the close of each of
      the
      first three (3) calendar quarters, Borrower shall deliver to the Lender a
      balance sheet and a statement of profit and loss for Borrower for such calendar
      quarter; and (b) within thirty (30) days after the end of each calendar month,
      Borrower shall deliver to the Lender a balance sheet and statement of profit
      and
      loss for Borrower for such calendar month. If the Lender specifically requires
      quarterly or monthly financial statements, such statements shall comply with
      the
      requirements of Section 7.1 of the Loan Schedule.

    

    3.18
      Other
      Financial Information. Borrower
      shall deliver to the Lender, or cause to be delivered to the Lender, a complete
      and accurate copy of each federal income tax return and each application for
      an
      extension of time to file each federal income tax return filed by Borrower
      and
      each Guarantor by October
      15. Each
      Guarantor is to include their K-1 schedules with each federal income tax
      return.

    ARTICLE
      4

    

    DEFAULT
      AND REMEDIES 

    

    4.1
      Events
      of Default. The
      Lender, at its option, may declare Borrower to be in default under this
      Agreement and the other Loan Documents upon the occurrence of any or all of
      the
      following events (the declaration of such a default by the Lender shall
      constitute an "Event of Default"):

    (a)  Payment
      of Note and Other Monetary Obligations. If
      Borrower fails to pay any of its indebtedness under the Note or perform any
      of
      its other obligations under the Loan Documents or under any other document
      with
      Lender requiring the payment of money to the Lender or any third Person within
      fifteen (15) days after the date on which such indebtedness or monetary
      obligation is due; provided, however, that the fifteen (15) day grace period
      contained in this Section 4.1(a) shall not apply to Borrower's obligation to
      pay
      the outstanding principal balance and all accrued but unpaid interest under
      the
      Note on the Maturity Date of the Note;

    
      
         

      

      
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    (b)  Failure
      to Comply with Financial Covenants, Permit Inspections, or to Perform Certain
      Non-Monetary Obligations Under Other Loan Documents. If
      (i)
      Borrower fails to comply with any or all of the Financial Covenants, if any;
      (ii) Borrower fails to permit any inspection the Collateral or any of Borrower's
      books and records in accordance with the terms of the Loan Documents; or (iii)
      Borrower breaches any of its non-monetary obligations to the Lender or any
      third
      Person under any of the Loan Documents or under any other document with Lender,
      which breach is not reasonably susceptible to being cured by
      Borrower;

    

    (c)  Performance
      of Non-Monetary Obligations Under Other Loan Documents Which are Curable.
If
      (i)
      Borrower fails to perform any of its non-monetary obligations to the Lender
      (other than those set forth in Section 4.1(b) above) or any third Person under
      any of the Loan Documents or under any other document with Lender when due;
      and
      (ii) if such non-monetary obligation is reasonably susceptible to being cured
      by
      Borrower, Borrower fails to diligently complete a cure of its breach of such
      non-monetary obligation as soon as reasonably practicable after written notice
      by the Lender to Borrower setting forth such non-monetary breach, but in any
      event within thirty (30) days after such notice is given; provided, however,
      that the thirty (30) day cure period contained in this Section 4.1(c) shall
      not
      be deemed to apply if Borrower commits more than two (2) such non-monetary
      breaches within any twelve (12) calendar month period. Without limiting any
      of
      the terms of this Section 4.1(c), the cure provision contained in this Section
      4.1(c) (the "Cure Provision") shall not apply with respect to Borrower's failure
      to comply with the Financial Covenants or Borrower's breach of any non-monetary
      obligation of Borrower that is not reasonably susceptible to being cured by
      Borrower, including any transfer of the Collateral in violation of the terms
      of
      the Loan Documents. Notwithstanding anything to the contrary contained in this
      Section 4.1(c) or Section 4.1(a) above, if Borrower breaches any of the terms
      of
      the Loan Documents, and if the Lender, in its discretion, determines that such
      breach impairs the Lender's security for the Loan, the Lender, immediately
      upon
      the occurrence of any such breach, shall have the right to take such actions
      and
      exercise such remedies under the Loan Documents as the Lender may in good faith
      determine to be necessary or appropriate to avoid such impairment;

    

    (d)  Misrepresentation.
      If
      any
      request, statement, information, certification, representation, or warranty,
      whether written or oral, submitted or made by Borrower to the Lender in
      connection with the Loan or any other extension of credit by the Lender to
      Borrower, now or in the future, is false or misleading in any material
      respect;

    

    (e)  Insolvency
      of Borrower. If
      (i) a
      petition is filed by or against Borrower under the federal bankruptcy laws
      or
      any other applicable federal or state bankruptcy, insolvency or similar law;
      (ii) a receiver, liquidator, trustee, custodian, sequestrator, or other similar
      official is appointed to take possession of Borrower, the Collateral, or any
      material part of Borrower's other assets, or Borrower consents to such
      appointment; (iii) Borrower makes an assignment for the benefit of creditors;
      (iv) Borrower takes any action in furtherance of any of the foregoing; or (v)
      there is a material adverse change in Borrower's financial condition as
      represented to the Lender in connection with the Lender's approval of the Loan
      and the Lender reasonably determines that such change materially impairs
      Borrower's ability to perform any or all of the Obligations; provided, however,
      that Borrower shall have sixty (60) days within which to cause any involuntary
      bankruptcy proceeding to be dismissed or the involuntary appointment of any
      receiver, liquidator, trustee, custodian, or sequestrator to be discharged.
      The
      cure provision contained in this Section shall be in lieu of, and not in
      addition to, any and all other cure provisions contained in the Loan
      Documents;

    (f)  Insolvency
      of Other Persons. If
      any of
      the events specified in clauses (i) through (v) of Section 4.1(e) above occurs
      with respect to any Guarantor, as if such Guarantor were the Borrower described
      therein;

    

    (g)  Performance
      of Obligations to Third Persons. If
      (i)
      Borrower fails to pay any of its indebtedness or to perform any of its
      obligations when due under any document between Borrower and any other Person
      who holds a lien on the Collateral that is senior to the lien held by the Lender
      in the Collateral and fails to cure such breach within any applicable cure
      period under such document; or (ii) Borrower fails to pay any of its
      indebtedness or to perform any of its obligations when due under any other
      material document between Borrower and any other Person, provided the Lender
      reasonably determines that such failure has an actual or potential material
      adverse effect on the Collateral or Borrower's ability to perform any or all
      of
      the Obligations. Nothing contained in this Section constitutes or shall be
      construed as the Lender's consent to any lien being placed on the Collateral,
      other than the Permitted Liens;

    

    (h)  Attachment.
      If
      all or
      any material part of the assets of Borrower or any Guarantor are attached,
      seized, subjected to a writ or levied upon by any court process and Borrower
      fails to cause such attachment, seizure, writ or levy to be fully released
      or
      removed within sixty (60) days after the occurrence of such event. The cure
      provision contained in this Section shall be in lieu of, and not in addition
      to,
      any and all other cure periods contained in the Loan Documents;

    

    (i)  Injunctions.
      If
      a
      court order is entered against Borrower or any Guarantor enjoining the conduct
      of all or part of such Person's business and Borrower fails to cause such
      injunction to be fully stayed, dissolved or removed within sixty (60) days
      after
      such order is entered. The cure provision contained in this Section shall be
      in
      lieu of, and not in addition to, any and all other cure periods contained in
      the
      Loan Documents;

    

    (j)  Dissolution.
      If
      Borrower or any Guarantor is a corporation, partnership, limited liability
      company, trust or other entity, the dissolution, liquidation, or termination
      of
      existence of such Person;

    

    
      
         

      

      
        -54-

        
          

        

      

      
         

      

    

    (k)  Transfers
      of Interests. If
      Borrower is a corporation, partnership, limited liability company, or other
      entity, the sale or transfer of an aggregate of more than twenty-five percent
      (25%) of the beneficial interests in Borrower without the Lender's prior written
      consent;

    

    (l)  Death;
      Incompetence. If
      Borrower or any Guarantor is an individual, the death of such Person or judicial
      determination that such person is mentally incompetent, except where applicable
      law limits or prohibits the Lender's declaration of a default based on such
      occurrences; provided, however, that the Lender shall not declare an Event
      of
      Default to exist based solely on the death or mental incompetence of any
      individual Guarantor if, within forty-five (45) days after the occurrence of
      such event, Borrower causes a substitute guarantor to execute and deliver to
      the
      Lender a continuing guaranty in the form previously executed by the affected
      Guarantor, and the Lender in its discretion determines that such substitute
      guarantor's financial condition is comparable to that of the affected Guarantor
      and that such substitute Guarantor is otherwise reasonably acceptable to the
      Lender;

    

    (m)  Impairment
      of Security Interest or Lender's Rights. If
      (i)
      the validity or priority of the Lender's security interest in the Collateral
      is
      impaired for any reason; or (H) the value of the Collateral has deteriorated,
      declined or depreciated as a result of any intentional act or omission by
      Borrower; or (Hi) the Lender, acting in good faith and in a commercially
      reasonable manner, deems itself insecure because of the occurrence of an event
      affecting Borrower, or any Guarantor or the Collateral prior to the Closing
      Date
      of which Lender had no actual knowledge as of the Closing Date or because of
      the
      occurrence of such an event on or subsequent to the Closing Date;

    

    (n)  Default
      by Guarantors. If
      any
      Guarantor fails to pay any of its indebtedness or perform any of its obligations
      under any of the Guaranties when due or the revocation, limitation or
      termination or attempted revocation, limitation or termination of any of the
      obligations of any Guarantor under any of the Guaranties; or

    

    (o)  Misrepresentation
      by Guarantors. If
      any
      request, statement, information, certification, representation, or warranty,
      whether written or oral, submitted or made by any Guarantor to the Lender in
      connection with the Loan or any other extension of credit by the Lender to
      Borrower or such Guarantor, now or in the future, is false or misleading in
      any
      material respect.

    4.2
      Remedies.
      Upon
      the
      Lender's election to declare Borrower to be in default under the Loan Documents
      pursuant to Section 4.1 above, Borrower shall be deemed to be in default under
      the Loan Documents, and the Lender shall have the right to do any or all of
      the
      following:

    

    (a)  Acceleration.
      The
      Lender shall have the right to declare any or all of the Obligations to be
      immediately due and payable, including the entire principal amount and all
      accrued but unpaid interest under the Note, and notwithstanding the Maturity
      Date of the Note, such Obligations shall thereupon be immediately due and
      payable;

    

    (b)  Remedies
      Under Other Loan Documents. The
      Lender may exercise any or all rights and remedies which the Lender may have
      under any or all of the Loan Documents and applicable law;

    

    (c)  Discontinuation
      of Disbursements. The
      Lender may discontinue or withhold any or all advances of the Loan proceeds,
      and
      the Lender shall have no further obligation to make any Line of Credit Advance;
      and

    

    (d)  Discontinuation
      of Other Extensions of Credit. The
      Lender may discontinue advancing money or extending credit to or for the benefit
      of Borrower in connection with any other document between the Lender and
      Borrower.

    

    

    ARTICLE
      5 

    

    WARRANTIES
      AND REPRESENTATIONS 

    

    5.1
      Borrower's
      Warranties and Representations. As
      a
      material inducement to the Lender's extension of credit to Borrower in
      connection with the Loan, Borrower warrants and represents to the Lender as
      follows:

    

    (a)  Existence.
      If
      Borrower is a corporation, partnership, limited liability company, trust, or
      other form of entity, Borrower is duly organized, validly existing and in good
      standing under the laws of the state in which Borrower is organized, and
      Borrower is qualified to do business and is in good standing in each
      jurisdiction in which the ownership of its assets or the conduct of its business
      requires qualification as a foreign entity and where the failure to so qualify
      would have a material adverse effect on Borrower's business.

    

    (b)  Authority
      to Own Assets. Borrower
      has the full power and authority to own its assets and to transact the business
      in which it is now engaged.

    

    
      
         

      

      
        -55-

        
          

        

      

      
         

      

    

    (c)  Authority
      to Execute Loan Documents. Borrower
      has the full power and authority to execute, deliver and perform its obligations
      under the Loan Documents, and the execution, delivery and performance of the
      Loan Documents and the consummation of the transactions contemplated thereby
      have been duly authorized by all requisite action on the part of Borrower.
      The
      Person or Persons signing the Loan Documents on behalf of Borrower are duly
      authorized to execute the Loan Documents and all other documents necessary
      to
      consummate the Loan on behalf of Borrower.

    

    (d)  Valid
      Obligations. The
      Loan
      Documents are legal, valid and binding obligations of Borrower and the
      Guarantors, as applicable, enforceable in accordance with their terms (except
      as
      enforcement may be limited by equitable principles and by bankruptcy,
      insolvency, reorganization, moratorium or similar laws relating to creditors'
      rights generally)

    

    (e)  No
      Consents Required. No
      consent of any other Person and no consent, approval, authorization or other
      action by or filing with any Governmental Authority not previously obtained
      by
      Borrower is required in connection with the execution, delivery and performance
      of the Loan Documents by Borrower.

    

    (f)  Chief
      Executive Office. Borrower's
      chief executive office is located at the address set forth in Borrower's
      Application.

    

    (g)  Borrower's
      Name. Borrower
      has set forth above its full and correct name, and Borrower does not use any
      other names or tradenames, except for the tradenames disclosed in Borrower's
      Application.

    

    (h)  No
      Violations. The
      execution, delivery and performance of the Loan Documents and compliance with
      their respective terms will not conflict with or result in a violation or breach
      of any of the terms or conditions of any document to which Borrower is a party
      or by which Borrower is bound or any order or judgment of any court or
      Governmental Authority binding on Borrower.

     

    (i)  Organizational
      Documents.
      Borrower's
      execution, delivery and performance of the Loan Documents and Borrower's
      compliance with their respective terms (i) will not violate any Governmental
      Requirements applicable to Borrower; (ii) Borrower's agreement or certificate
      of
      limited partnership, if Borrower is a limited partnership; (iii) Borrower's
      agreement or statement of partnership, if Borrower is a general partnership;
      (iv) Borrower's articles of incorporation or bylaws, if Borrower is a
      corporation; (v) Borrower's trust agreement, if Borrower is a trust; or (vi)
      Borrower's articles of organization or operating agreement, if Borrower is
      a
      limited liability company.

    (j)  Tax
      Claims. To
      the
      best of Borrower's knowledge, there are no claims or adjustments proposed by
      any
      taxing authority for any of Borrower's prior tax years which could result in
      additional taxes becoming due and payable by Borrower. Borrower and each
      Guarantor have filed all federal, state and local tax returns required to be
      filed under applicable Governmental Requirements and have paid all taxes,
      assessments, fees, penalties, and other governmental charges that are due and
      payable in connection therewith.

    

    (k)  Litigation.
      To
      the
      best of Borrower's knowledge, there are no actions, suits, proceedings or
      investigations pending or threatened against or affecting Borrower or any
      Guarantor in any court or before any other Governmental Authority which may
      result, either separately or in the aggregate, in any material adverse change
      in
      the assets, properties, business, prospects, profits, or condition of Borrower
      or any of such Persons, nor does Borrower know of any basis for any such action,
      suit, proceeding or investigation.

    

    (I)
      Financial
      Statements. All
      financial statements respecting the financial condition of Borrower which have
      been furnished to the Lender prior to the Closing Date (i) are accurate and
      complete in all material respects as of the dates appearing thereon; (ii)
      present fairly the financial condition and results of operations of the Person
      to whom the financial statement applies as of the dates and for the periods
      shown on such statements; and (iii) disclose all contingent liabilities
      affecting the Person to whom the financial statement applies to the extent
      that
      such disclosure is required by generally accepted accounting principles. Since
      the last date covered by any such statement, there has been no material adverse
      change in the financial condition of Borrower, and Borrower is now and at all
      times hereafter shall continue to be solvent.

    

    (m)  Periodic
      Financial Statements. All
      financial statements respecting the financial condition of Borrower hereafter
      delivered to the Lender by Borrower shall satisfy the requirements of clauses
      (i) through (iii) of Section 5.1 (I) above.

    

    (n)  Margin
      Stock. Borrower
      is not engaged in the business of extending credit for the purpose of purchasing
      or carrying any "margin stock" (as defined in Regulation G of the Board of
      Governors of the Federal Reserve System), and no part of the proceeds of the
      Loan shall be used to purchase or carry any margin stock or to extend credit
      to
      others for the purpose of purchasing or carrying any margin stock, unless such
      use is approved in writing by the Lender or otherwise expressly contemplated
      by
      the Loan Documents.

    

    (o)  Licenses
      and Governmental Requirements. Neither
      Borrower nor any Guarantor (i) is in violation in any material respect of any
      Governmental Permits or Governmental Requirements (including all Hazardous
      Substance Laws) to which it is subject; or (ii) has failed to obtain any
      Governmental Permits necessary for the ownership of its properties or the
      conduct of its business.

    

    
      
         

      

      
        -56-

        
          

        

      

      
         

      

    

    (p)  Other
      Facts. All
      of
      the information set forth in Borrower's Application is accurate and complete
      in
      all material respects. There is no fact which Borrower has failed to disclose
      to
      the Lender in writing which (i) may materially and adversely affect the assets,
      properties, business, prospects, profits, or condition of Borrower, or any
      Guarantor; or (ii) may be necessary to disclose in order to keep the
      representations and warranties contained in this Section 5.1 from being
      misleading.

    

    5.2
      Borrower's
      Warranties. Borrower's
      warranties and representations set forth in Section 5.1 above shall be true
      and
      correct at the time of execution of this Agreement and as of the Closing Date,
      shall survive the closing of the Loan, and shall remain true and correct as
      of
      the date on which such warranties and representations are given. For purposes
      of
      this Agreement and the other Loan Documents, the term "to the best of Borrower's
      knowledge" shall be deemed to mean to the best knowledge of Borrower after
      a
      commercially reasonable and diligent investigation, inspection and inquiry
      by
      Borrower.

    

    ARTICLE
      6 

    

    MISCELLANEOUS

    

    6.1
      Relationship
      of Parties. The
      Lender shall not be deemed to be, nor do the Lender or Borrower intend that
      the
      Lender shall ever become, a partner, joint venturer, trustee, fiduciary,
      manager, controlling person, or other business associate or participant of
      any
      kind in the business or affairs of Borrower, whether as a result of the Loan
      Documents or any of the transactions contemplated by the Loan Documents. In
      exercising its rights and remedies under the Loan Documents, the Lender shall
      at
      all times be acting only as a lender to Borrower within the normal and usual
      scope of activities of a lender.

    

    6.2
      Indemnification.
      Borrower
      shall indemnify and hold the Lender and its officers, directors, agents,
      employees, representatives, shareholders, affiliates, successors and assigns
      (collectively, the "Indemnified Parties") harmless from and against any and
      all
      claims, demands, damages (including special and consequential damages),
      liabilities, actions, causes of action, legal proceedings, administrative
      proceedings, suits, injuries, costs, losses, debts, liens, interest, fines,
      charges, penalties and expenses (including attorneys', accountants',
      consultants', and expert witness fees and costs) of every kind and nature
      (collectively, the "Claims") arising directly or indirectly out of or relating
      to any or all of the following: (i) Borrower's breach of any of its Obligations
      or warranties under the Loan Documents; (ii) any act or omission by Borrower
      or
      any of its employees or agents; (iii) Borrower's use of the Collateral or any
      other activity or thing allowed or suffered by Borrower to be done on or about
      the any of Borrower's properties; and (iv) any claims for commissions, finder's
      fees or brokerage fees arising out of the Loan or the transactions contemplated
      by the Loan Documents, if such claim is based on any act, omission or agreement
      by Borrower or any Affiliate. Notwithstanding anything to the contrary contained
      in this Section, Borrower shall not be obligated to indemnify any Indemnified
      Party for any liabilities resulting solely from the gross negligence or
      intentional tortious conduct of such Indemnified Party which such Indemnified
      Party is determined by the final judgment of a court of competent jurisdiction
      to have committed. Borrower's obligation to indemnify the Indemnified Parties
      under this Section 6.2 shall survive the cancellation of the Note and the
      release of the Lender's security interests under the Security
      Agreements.

    

    6.3
      Power
      of Attorney. Borrower
      irrevocably appoints the Lender, with full power of substitution, as Borrower's
      attorney-in-fact, coupled with an interest, with full power, in the Lender's
      own
      name or in the name of Borrower to sign, record and file all documents referred
      to in Section 3.6 above. The Lender shall have the right to exercise the power
      of attorney granted in this Section directly or to delegate all or part of
      such
      power to one or more agents of the Lender. Nothing contained in the Loan
      Documents shall be construed to obligate the Lender to act on behalf of Borrower
      as attorney-in-fact. 

    

    6.4
      Actions.
      Whether
      or not an Event of Default has occurred, the Lender shall have the right, but
      not the obligation, to commence, appear in, or defend any action or proceeding
      which affects or which the Lender determines may affect (a) the Collateral;
      (b)
      Borrower's or the Lender's respective rights or obligations under the Loan
      Documents; (c) the Loan; or (d) the disbursement of any proceeds of the Loan.
      Whether or not an Event of Default has occurred, the Lender shall at all times
      have the right to take any or all actions which the Lender determines to be
      necessary or appropriate to protect the Lender's interest in connection with
      the
      Loan.

    

    6.5
      Attorneys'
      Fees and Costs and Other Expenses. Upon
      the
      Lender's demand, Borrower shall reimburse the Lender for all costs and expenses,
      including attorneys' fees and costs, incurred by the Lender in connection with
      the exercise of any or all of the Lender's rights and remedies under the Loan
      Documents; the enforcement of any or all Obligations, whether or not any legal
      proceedings are instituted by the Lender; or the defense of any action or
      proceeding by Borrower or any other Person relating to the Loan. Without
      limiting the generality of the immediately preceding sentence, such costs and
      expenses shall include all attorneys' fees and costs incurred by the Lender
      in
      connection with any federal or state bankruptcy, insolvency, reorganization,
      or
      other similar proceeding by or against Borrower or any Guarantor which in any
      way affects the Lender's exercise of its rights and remedies under the Loan
      Documents. Borrower's obligation to reimburse the Lender under this Section
      shall include payment of interest on all amounts expended by the Lender from
      the
      date of expenditure at the rate of interest applicable to principal under the
      Note. Wherever any of the terms of the Loan Documents provide for the payment
      or
      recovery of costs, fees, or other expenses (including attorneys' fees and
      costs), such term shall be deemed to provide for the payment or recovery of
      reasonable costs, fees, expenses, and reasonable attorneys' fees and
      costs.

    

    6.6
      No
      Third Party Beneficiaries. The
      Loan
      Documents are entered into for the sole protection and benefit of the Lender,
      Borrower and Guarantors, as applicable, and their respective permitted
      successors and assigns. No other Person shall have any rights or causes of
      action under the Loan Documents.

      
        
           

        

        
          -57-

          
            

          

        

        
           

        

      

    

    6.7
      Documents.
      The
      form
      and substance of all documents and instruments which Borrower is required to
      deliver to the Lender under this Agreement shall be subject to the Lender's
      approval.

    

    6.8
      Notices.
      All
      notices and demands by the Lender to Borrower under this Agreement shall be
      in
      writing and shall be effective on the earliest of (a) personal delivery to
      Borrower; (b) two (2) days after deposit in first class or certified United
      States mail, postage prepaid, addressed to Borrower at the address set forth
      in
      the Loan Schedule; and (c) one (1) business day after deposit with a reputable
      overnight delivery service, delivery charges prepaid, addressed to Borrower
      at
      the address set forth in the Loan Schedule. All notices and demands by Borrower
      to the Lender under this Agreement shall be in writing and shall be effective
      on
      actual receipt by the Lender at the Lender's address shown in the Loan Schedule;
      provided, however, that non-receipt of any such notice or demand by the Lender
      as a result of the Lender's refusal to accept delivery or the Lender's failure
      to notify Borrower of the Lender's change of address shall be deemed to
      constitute receipt by the Lender. The addresses specified in the Loan Schedule
      may be changed by
      notice
      given in accordance with this Section. If Borrower consists of more than one
      Person, service of any notice on any one of such Persons by the Lender shall
      be
      effective service on Borrower for all purposes.

    

    6.9
      Severability;
      No Offsets. If
      any
      provision of the Loan Documents shall be held by any court of competent
      jurisdiction to be unlawful, voidable, void, or unenforceable for any reason,
      such provision shall be deemed to be severable from and shall in no way affect
      the validity or enforceability of the remaining provisions of the Loan
      Documents. No Obligations shall be offset by all or part of any claim, cause
      of
      action, or cross-claim of any kind, whether liquidated or unliquidated, which
      Borrower now has or may hereafter acquire or allege to have acquired against
      the
      Lender. To the fullest extent permitted by law, Borrower waives the benefits
      of
      any applicable law, regulation, or procedure which provides, in substance,
      that
      where cross demands for money exist between parties at any point in time when
      neither demand is barred by the applicable statute of limitations, and an action
      is thereafter commenced by one such party, the other party may assert the
      defense of payment in that the two demands are compensated so far as they equal
      each other, notwithstanding that an independent action asserting the claim
      would
      at the time of filing the response be barred by the applicable statute of
      limitations.

    

    6.10
      Interpretation.
      Whenever
      the context of this Agreement reasonably requires, all words used in the
      singular shall be deemed to have been used in the plural, and the neuter gender
      shall be deemed to include the masculine and feminine gender, and vice versa.
      The headings to sections of this Agreement are for convenient reference only
      and
      shall not be used in interpreting this Agreement. For purposes of this
      Agreement, (a) the term "including" shall be deemed to mean "including without
      limitation"; (b) the term "document" shall be deemed to include all written
      contracts, commitments, agreements, and instruments; and (c) the term
      "discretion," when applied to any determination, consent, or approval right
      by
      the Lender, shall be deemed to mean the Lender's sole but good faith business
      judgment.

    

    6.11
      Time
      of the Essence.
      Time
      is
      of the essence in the performance of each provision of the Loan Documents by
      Borrower.

    

    6.12
      Amendments.
      The
      Loan
      Documents (excluding the Guaranties) may be modified only by a written agreement
      signed by Borrower and the Lender.

    

    6.13
      Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall constitute an
      original, and all of which together shall constitute one and the same
      document.

    

    6.14
      Entire
      Agreement. The
      Loan
      Documents contain the entire agreement concerning the subject matter of the
      Loan
      Documents and supersede all prior and contemporaneous negotiations, agreements,
      statements, understandings, terms, conditions, representations and warranties,
      whether oral or written, by and among the Lender, Borrower and Guarantors
      concerning the Loan which is the subject matter of the Loan
      Documents.

    

    6.15
      No
      Waiver by Lender. No
      waiver
      by the Lender of any of its rights or remedies in connection with the
      Obligations or of any of the terms or conditions of the Loan Documents shall
      be
      effective unless such waiver is in writing and signed by the
      Lender.

    

    6.16
      Cumulative
      Remedies. No
      right
      or remedy of the Lender under this Agreement or the other Loan Documents shall
      be exclusive of any other right or remedy under the Loan Documents or to which
      the Lender may be entitled. The Lender's rights and remedies under the Loan
      Documents are cumulative and in addition to all other rights and remedies which
      the Lender may have under any other document with Borrower and under applicable
      law.

    

    '
      6.17
      Joint
      and Several Liability. Each
      Person signing this Agreement as Borrower shall be jointly and severally liable
      to the Lender for the performance of Borrower's Obligations under the Loan
      Documents. If Borrower consists of more than one Person, the occurrence of
      any
      Default or Event of Default with respect to any one or more of such Persons
      shall constitute a Default or Event of Default, as applicable, and (in the
      case
      of an Event of Default) entitle the Lender to exercise its rights and remedies
      under Section 4.2 above. Each Borrower who is a married person agrees that
      the
      Lender shall have the right to recourse against his or her community property
      and separate property for any or all Obligations to the fullest extent permitted
      by law.

    
      
         

      

      
        -58-

        
          

        

      

      
         

      

    

    

    6.18
      Assignment.
      Borrower
      shall not assign, encumber, or otherwise transfer any or all of Borrower's
      rights under the Loan Documents, whether voluntarily, involuntarily, or by
      operation of law, without the Lender's prior written consent, which consent
      may
      be withheld in the Lender's discretion. Any purported assignment, encumbrance
      or
      transfer by Borrower in violation of this Section shall be void. Borrower
      acknowledges and agrees that the Lender's agreement to make the Loan to Borrower
      and enter into the Loan Documents is based in material part on the Lender's
      reliance on Borrower's particular financial condition, credit history,
      character, experience, ability, skill, and reputation, as represented by
      Borrower to the Lender.

    

    6.19
      Waivers.
      Borrower
      waives presentment, demand for payment, protest, notice of demand, dishonor,
      protest and non-payment, and all other notices and demands in connection with
      the delivery, acceptance, performance, default under, and enforcement of the
      Loan Documents. Borrower waives the right to assert any statute of limitations
      as a defense to the enforcement of any or all of the Loan Documents to the
      fullest extent permitted by law. Borrower waives all rights, remedies, and
      benefits under California Civil Code Section 2822(a). Without limiting the
      generality of the immediately preceding
      sentence, in the event of Borrower's payment in partial satisfaction of any
      or
      all of the Obligations, Lender shall have the sole and exclusive right and
      authority to designate the portion of the Obligations that is to be satisfied.
      Borrower and all Persons holding a lien of any kind affecting all or part of
      the
      Collateral who have actual or constructive notice of this Agreement waive (a)
      all rights to require marshalling of assets or liens in the event of Lender's
      exercise of any of its rights and remedies under the Loan Documents; and (b)
      all
      rights to require Lender to exercise any other right or power or to pursue
      any
      other remedy which Lender may have under any document or applicable law before
      exercising any other such right, power, or remedy.

    

    6.20
      Applicable
      Law; Jurisdiction. The
      Loan
      Documents shall be governed by and construed in accordance with the laws of
      the
      State of California. Borrower agrees that the courts of the State of California
      and Federal District Courts located in San Francisco County, California, shall
      have exclusive jurisdiction and venue of any action or proceeding directly
      or
      indirectly arising out of or related to the negotiation, execution, delivery,
      performance, breach, enforcement or interpretation of this Agreement and all
      of
      the other Loan Documents or any of the transactions contemplated by or related
      to any or all of the Loan Documents, regardless of whether or not any claim,
      counterclaim or defense in any such action or proceeding is characterized as
      arising out of fraud, negligence, intentional misconduct, breach of contract
      or
      fiduciary duty, or violation of any Governmental Requirements. Borrower
      irrevocably consents to the personal jurisdiction of such courts, to such venue,
      and to the service of process in the manner provided for the giving of notices
      in this Agreement. Borrower waives all objections to such jurisdiction and
      venue, including all objections that are based upon inconvenience or the nature
      of the forum.

    

    6.21
      WAIVER
      OF RIGHT TO JURY TRIAL. BORROWER
      IRREVOCABLY WAIVES ALL RIGHTS TO A JURY TRIAL IN ANY ACTION, SUIT, PROCEEDING
      OR
      COUNTERCLAIM OF ANY KIND DIRECTLY OR INDIRECTLY ARISING OUT OF OR IN ANY WAY
      RELATING TO THE LOAN, THIS NOTE, ANY AGREEMENT SECURING THIS NOTE, OR ANY OF
      THE
      OTHER DOCUMENTS EXECUTED BY BORROWER IN CONNECTION WITH THE LOAN (COLLECTIVELY,
      THE "LOAN DOCUMENTS"), ANY OR ALL OF THE REAL AND PERSONAL PROPERTY COLLATERAL
      SECURING THE LOAN, OR ANY OF THE TRANSACTIONS WHICH ARE CONTEMPLATED BY THE
      LOAN
      DOCUMENTS. THE JURY TRIAL WAIVER CONTAINED IN THIS SECTION 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 RELATED TO ANY OR ALL OF THE
      MATTERS DESCRIBED IN THE IMMEDIATELY PRECEDING SENTENCE, INCLUDING WITHOUT
      LIMITATION CONTRACT CLAIMS, TORT CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
      CLAIMS OF ANY KIND. BORROWER ACKNOWLEDGES AND AGREES THAT (1) BORROWER HAS
      CAREFULLY READ AND UNDERSTANDS ALL OF THE TERMS OF THE LOAN DOCUMENTS; (2)
      BORROWER HAS EXECUTED THE LOAN DOCUMENTS FREELY AND VOLUNTARILY, AFTER HAVING
      CONSULTED WITH BORROWER'S INDEPENDENT LEGAL COUNSEL AND AFTER HAVING HAD ALL
      OF
      THE TERMS OF THE LOAN DOCUMENTS EXPLAINED TO IT BY ITS INDEPENDENT LEGAL COUNSEL
      OR AFTER HAVING HAD A FULL AND ADEQUATE OPPORTUNITY TO CONSULT WITH BORROWER'S
      INDEPENDENT LEGAL COUNSEL; (3) THE WAIVERS CONTAINED IN THE LOAN DOCUMENTS
      ARE
      REASONABLE, NOT CONTRARY TO PUBLIC POLICY OR LAW, AND HAVE BEEN INTENTIONALLY,
      INTELLIGENTLY, KNOWINGLY, AND VOLUNTARILY AGREED TO BY BORROWER; (4) THE WAIVERS
      CONTAINED IN THE LOAN DOCUMENTS HAVE BEEN AGREED TO BY BORROWER WITH FULL
      KNOWLEDGE OF THEIR SIGNIFICANCE AND CONSEQUENCES, INCLUDING FULL KNOWLEDGE
      OF
      THE SPECIFIC NATURE OF ANY RIGHTS OR DEFENSES WHICH BORROWER HAS AGREED TO
      WAIVE
      PURSUANT TO THE LOAN DOCUMENTS; (5) BORROWER HAS HAD A FULL AND ADEQUATE
      OPPORTUNITY TO NEGOTIATE THE TERMS CONTAINED IN THE LOAN DOCUMENTS; (6) BORROWER
      IS EXPERIENCED IN AND FAMILIAR WITH LOAN TRANSACTIONS OF THE TYPE EVIDENCED
      BY
      THE LOAN DOCUMENTS; AND (7) THE WAIVERS CONTAINED IN THE LOAN DOCUMENTS ARE
      MATERIAL INDUCEMENTS TO THE LENDER'S EXTENSION OF CREDIT TO BORROWER, AND THE
      LENDER HAS RELIED ON SUCH WAIVERS IN MAKING THE LOAN TO BORROWER AND WILL
      CONTINUE TO RELY ON SUCH WAIVERS IN ANY RELATED FUTURE DEALINGS WITH BORROWER.
      THE WAIVERS CONTAINED IN THE LOAN DOCUMENTS SHALL APPLY TO ALL SUBSEQUENT
      EXTENSIONS, RENEWALS, MODIFICATIONS, AND REPLACEMENTS OF THE LOAN DOCUMENTS.
      THIS NOTE MAY BE FILED WITH ANY COURT OF COMPETENT JURISDICTION AS BORROWER'S
      WRITTEN CONSENT TO BORROWER'S WAIVER OF A JURY TRIAL. BORROWER HAS INITIALED
      THIS SECTION BELOW TO INDICATE ITS AGREEMENT WITH THE JURY TRIAL WAIVER AND
      OTHER TERMS CONTAINED IN THIS SECTION.

    

    6.22
      Successors.
      Subject
      to the restrictions contained in the Loan Documents, the Loan Documents shall
      be
      binding upon and inure to the benefit of the Lender and Borrower and their
      respective permitted successors and assigns.

    

    
      
         

      

      
        -59-

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    
      	 	
              Borrower:

            	 
	 	
              CRESA
                Partners of Orange County, LP, 

            	 
	 	
              a
                Delaware limited partnership

            	 
	 	 	 
	
              By:
                

            	
              CRESA
                Partners-West, Inc., 

            	 
	 	
              a
                California corporation

            	 
	
              Its:

            	
              General
                Partner

            	 
	 	 	 
	
              By:
                

            	
              /s/
                Kevin John Hayes

            	 
	 	
              Kevin
                John Hayes, President

            	 
	 	 	 
	 	
              Lender:

            	 
	 	
              First
                Republic Bank

            	 
	 	 	 
	
              By:
                

            	
              /s/
                Carolyn Powell

            	 
	 	
              Carolyn
                Powell

            	 
	
              Its:
                

            	
              Managing
                Director

            	 

    

    

    

    

    

    
      
         

      

      
        -60-

        
          

        

      

      
         

      

    

    LOAN
      AGREEMENT

    (LINE
      OF CREDIT) 

    EXHIBIT
      "A"

    

    LOAN
      SCHEDULE

    

    This
      Loan Schedule is an integral part of the Loan Agreement between the Lender
      and
      Borrower, and the following terms are incorporated in and made a part of the
      Loan Agreement to which this Loan Schedule is attached:

    1. Borrower:
      CRESA
      Partners of Orange County, LP, a Delaware limited
      partnership

    

    2. Guarantors:
      Kevin
      John Hayes; Kevin Hayes and Alice Hayes, Trustees of the Hayes Trust; Kenneth
      Ward; Sandra K. Kikerpill; Jeff A. Manley; David Lee Willis; David Lee Willis
      and Marsha Millstead Willis, Trustees of the David and Marsha Willis Trust;
      Richard T. Martin; Jeffrey G. Shepard; Wayne C. Lamb and Kenneth Bruce
      Blye

    3. Borrower's
      Notice Address:  CRESA
      Partners of Orange County, LP, 

    a
      Delaware limited partnership 

    610
      Newport Center Drive, Suite 500, 

    Newport
      Beach, California 92660

    

    4. Lender's
      Notice Address:  First
      Republic Bank

    111
      Pine Street

    San
      Francisco, California 94111

    Attention:
      Manager, Commercial Loan Operations

    5. Loan
      Fee: One
      Thousand Two Hundred Fifty and 00/100 Dollars ($1,250.00)

    Loan
      Documentation Fee: Nine
      Hundred Ninety-Five and 00/100 Dollars ($995.00)

    

    6. Financial
      Covenants. Borrower
      shall comply with the following Financial Covenants:

    

    6.1 Capital
      Expenditures: Borrower
      shall not make any expenditures for fixed or capital assets if, after giving
      effect thereto, the aggregate of all such expenditures made by Borrower would
      exceed $350,000.00 during Borrower's fiscal year end for 2006 and $200,000.00
      during Borrower's fiscal year end for 2007.

    

    6.2 Thirty
      (30) Day Out of Debt Requirement: During
      the twelve (12) month period following the Closing Date, and during each
      consecutive twelve (12) month period thereafter prior to the Maturity Date
      of
      the Line of Credit
      Loan, Borrower shall not permit to be outstanding any indebtedness under the
      Line of Credit Loan for a period of time equal to at least thirty (30)
      consecutive calendar days.

    

    	6.3  	
            No
              Additional Indebtedness: Borrower
              (a) shall not directly or indirectly make, create, incur, assume, or
              permit to exist any guaranty of any kind of any indebtedness or other
              obligation of any other person during the term of this Agreement,
              excluding any guaranties by Borrower as of the date of this Agreement
              that
              are reflected in the financial statements referred to in Section 5.1
              of
              this Agreement; and (b) shall not directly or indirectly incur
              indebtedness for borrowed money during the term of this Agreement,
              excluding (i) debts owing by Borrower as of the date of this Agreement
              that are reflected in the financial statements referred to in Section
              5.1
              of this Agreement (other than those that are being paid substantially
              concurrently with the funding of the Loan); (ii) other borrowings from
              the
              Lender; and (iii) indebtedness secured by purchase money mortgages
              or
              liens which encumber only the property being
              purchased.

          

    

    	7.  	
            Accounting.

          

    

    7.1
      Quarterly/Annual
      Financial Statements. All
      quarterly and annual fiscal year end financial statements, including accounts
      receivable aging statements, provided by Borrower to the Lender under the Loan
      Documents shall be provided by February
      15, May 15, August 15 and
      November
      15 and
      shall
      comply with the following requirements: All
      quarterly/annual financial statements shall be certified by Borrower or, if
      Borrower is an entity, by Borrower's chief financial officer or by another
      officer or agent of Borrower acceptable to the Lender.

    

    7.2
      Annual
      Personal Financial Statements of Guarantors. Borrower
      shall ensure that all annual personal financial statements provided by each
      Guarantor to the Lender under the Loan Documents shall be provided by
May
      15 and
      shall
      comply with the following requirements: All
      annual personal financial statements shall be certified by each Guarantor.
      

    
      
         

      

      
        -61-

        
          

        

      

      
         

      

    

    

    	8.  	
            Nature
              of Line of Credit. The
              Line of Credit Loan is a revolving line of credit loan, and within
              the
              limits of the Commitment and subject to the terms and conditions of
              this
              Agreement and the other Loan Documents, Borrower may borrow, prepay
              pursuant to the note evidencing Line of Credit Loan, and reborrow the
              principal amount of the Line of Credit Loan.
              

          

    

    	9.  	
            Authorization
              to Charge Account.

          

    

    9.1
      Automatic
      Payment Authorization. Borrower
      authorizes the Lender to make automatic deductions from the following deposit
      account (the "Account") maintained by Borrower at Lender's offices in order
      to
      pay, when and as due, all of the regularly scheduled installment payments of
      interest, principal, or both principal and interest (a "Payment") that Borrower
      is required or obligated to make under the Note:

    Account
      No: 953-0001-4103

    

    Without
      limiting any of the terms of the Loan Documents, Borrower acknowledges and
      agrees that if Borrower defaults in its obligation to make a Payment because
      the
      collected funds in the Account are insufficient to make such Payment in full
      on
      the date that such Payment is due, then Borrower shall be responsible for all
      late payment charges and other consequences of such default by Borrower under
      the terms of the Loan Documents.

    

    9.2 Revocation
      of Authorization. Subject
      to the Section immediately following this Section, this authorization shall
      continue in full force and effect until the date which is five (5) business
      days
      after the date on which Lender actually receives written notice from Borrower
      expressly revoking the authority granted to the Lender to charge the Account
      for
      Payments in connection with the Loan. No such revocation by Borrower shall
      in
      any way release Borrower from or otherwise affect Borrower's obligations under
      the Loan Documents, including Borrower's obligations to continue to make all
      Payments required under the terms of the Note. 

    

    9.3Termination
      by Lender. The
      Lender, at its option and in its discretion, reserves the right to terminate
      the
      arrangement for automatic deductions from the Account pursuant to this Section
      at any time effective upon written notice of such election (a "Termination
      Notice") given by Lender to Borrower. Without limiting the generality of the
      immediately preceding sentence, the Lender may elect to give a Termination
      Notice to Borrower if Borrower fails to comply with any of the Lender's rules,
      regulations, or policies relating to the Account, including requirements
      regarding minimum balance, service charges, overdrafts, insufficient funds,
      uncollected funds, returned items, and limitations on
      withdrawals.

    

    9.4Increase
      in Interest Rate Upon Termination of Automatic Debit Arrangement.
The
      date on which the arrangement for automatic deductions from the Account
      terminates (whether as a result of Borrower's revocation of such arrangement
      or
      any Termination Notice given by the Lender) is referred to as the "Auto Debit
      Termination Date." Borrower acknowledges and agrees that the Lender would not
      have been willing to make the Loan at the interest rate or interest rates
      contained in the Note in the absence of the arrangement for automatic deductions
      from the Account pursuant to this authorization. Therefore, effective on the
      first due date of a Payment following the Auto Debit Termination Date, the
      Lender, at its option and in its discretion, shall have the right to increase
      the interest rate on the outstanding principal balance of the Note to a rate
      which is equal to one-half of one percent (0.50%) per annum (the "Percentage
      Rate Increase") above the otherwise applicable interest rate under the terms
      of
      the Note. If the Note provides for amortized monthly payments of principal
      and
      interest, then the amount of such monthly payments shall be increased by the
      Lender based on a reamortization schedule prepared by the Lender using the
      increased interest rate and the then remaining number of months in the original
      amortization period that was used by the Lender to calculate the original
      monthly payment amount. Such new monthly payments shall be payable commencing
      on
      the first Payment due date following the date of the interest rate
      Increase.

    

    	10.  	
            Other
              Covenants.

          

    

    Borrower
      shall at all times comply with all of the following additional
      covenants:

    

    10.1
      Borrower has outstanding, and may hereafter incur, additional indebtedness
      to
      Lender under one or more loan agreements. Borrower hereby agrees that the breach
      of, or the occurrence of an event of default under any other loan agreement
      between Borrower and Lender shall constitute an event of default under this
      Agreement.

    

    10.2
      Borrower shall not make distributions with the exception of: (1) to ASDS for
      taxes and debt service and (2) to ASI for management fees no greater than
      $75,000.00.

     

     -62-Exhibit 10.7 - Line of Credit Promissory Note

    Exhibit
      10.7

    LOAN
      NO.: 85-410896-5

    

    PROMISSORY
      NOTE

    (Line
      of Credit - Prime Rate Adjustable - Interest Only)

    

    $500,000.00                                                                           June
      8, 2006

    

    1.
      Promise
      to Pay. In
      installments and at the times stated in this Note, for value received,
CRESA
      Partners of Orange County, LP, a Delaware limited partnership
(the
      "Borrower"), promises to pay to First
      Republic Bank (the
      "Lender"), or order, at 111
      Pine Street, San Francisco, California 94111, Attention: Commercial Loan
      Operations, or
      at
      such other place as the Lender may from time to time designate in writing,
      the
      principal sum of Five
      Hundred Thousand and 00/100 Dollars ($500,000.00), or
      so
      much thereof as may be disbursed by the Lender, with interest from the date
      of
      initial disbursement of all or any part of the principal of this Note (the
      "Disbursement Date") on unpaid principal at the interest rate or interest rates
      provided for in this Note.

    

    2.
      Interest
      Rate; Payment of Principal and Interest.

    

    2.1
      Certain
      Definitions. For
      purposes of this Note, the following terms shall have the following
      definitions:

    

    (a)  "Note
      Rate" means the per annum interest rate on the principal sum of this Note which
      is outstanding from time to time.

    (b)  "Index"
      means the rate of interest publicly announced from time to time by Bank of
      America or any successor thereto, as its prime rate or reference rate. If such
      financial institution publicly announces more than one prime rate or reference
      rate, then the term "Index" shall mean the higher or highest of such
      rates.

    

    (c)  "Interest
      Payment Date" means July
      1, 2006 and
      the
      same date of each month thereafter to and including the same date of the month
      immediately preceding the month in which the Maturity Date occurs.

    

    2.2
      Interest.
      From
      the
      Disbursement Date to the Maturity Date of this Note, the Note Rate shall be
      equal to the Index minus one-half
      (.50) percentage
      point(s) per annum rounded upward to the nearest one-eighth (1/8th) of one
      percentage point (0.125%), subject to Section 4 below. The Note Rate shall
      be
      adjusted concurrently with, and such adjustments shall be effective on the
      same
      date as, adjustments announced in the Index.

    

    2.3
      Payments.
      Principal
      and interest shall be due and payable as follows:

    

    (a)  Interest
      Payments. Interest
      only shall be payable in arrears commencing on the first (1st) Interest Payment
      Date after the Disbursement Date and continuing on each Interest Payment Date
      thereafter until the Maturity Date.

    

    (b)  Payment
      on Maturity Date. The
      entire unpaid principal balance of this Note and all accrued and unpaid interest
      thereon shall be due and payable on June
      1, 2007 (the
      "Maturity Date"). BORROWER ACKNOWLEDGES AND AGREES THAT (1) THE LOAN EVIDENCED
      BY THIS NOTE IS NOT AN AMORTIZING LOAN; AND (2) THE ENTIRE PRINCIPAL BALANCE
      OF
      THIS NOTE SHALL BE DUE AND PAYABLE ON THE MATURITY DATE OF THIS
      NOTE.

    

    3.
      Loan
      Agreement; Interest Computation. This
      Note
      arises out of a Loan Agreement dated the same date as this Note (the "Loan
      Agreement") executed by Borrower. All terms with an initial capital letter
      that
      are used but not specifically defined in this Note shall have respective
      meanings given to such terms in the Loan Agreement. All payments under this
      Note
      shall be made in immediately available funds and shall be credited first to
      accrued interest then due, thereafter to unpaid principal, and then to other
      charges, fees, costs, and expenses payable by Borrower under this Note or in
      connection with the loan evidenced by this Note (the "Loan") in such order
      and
      amounts as the Lender may determine in its sole and absolute discretion. If
      any
      payment of interest is not made when due, at the option of the Lender of this
      Note, such interest payment shall bear interest at the same rate as principal
      from and after the due date of the interest payment. Principal and interest
      shall be payable only in lawful money of the United States of America. The
      receipt of any check or other item of payment (a "payment item") by the Lender,
      at its option, shall not be considered a payment until such payment item is
      honored when presented for payment at the drawee bank or institution, and the
      Lender, at its option, may delay the credit of such payment until such payment
      item is so honored. Notwithstanding
      anything to the contrary contained in this Note, interest at the rates provided
      for in this Note shall be computed on the basis of a three hundred sixty (360)
      day year for the actual number of days during which the principal balance of
      this Note is outstanding. Borrower acknowledges and agrees that the calculation
      of interest on the basis described in the immediately preceding sentence may
      result in the accrual and payment of interest in amounts greater than those
      which would be payable if interest were calculated on the basis of a three
      hundred sixty-five (365) day year.

    
       

      
        -63-

        
          

        

      

      
        
        

      

    

    

    4.
      After
      Maturity/Default Rate of Interest. From
      and
      after either (a) the occurrence of an Event of Default (whether or not the
      Lender has elected to accelerate unpaid principal and interest under this Note
      as a result of such Event of Default); or (b) the maturity of this Note (whether
      the stated maturity date of this Note or the maturity date resulting from the
      Lender's acceleration of unpaid principal and interest), then in either of
      such
      circumstances, interest on the unpaid principal balance of this Note shall
      accrue at a rate equal to eight percent (8%) per annum above the otherwise
      applicable Note Rate.

    

    5.
      Late
      Charge. If
      any
      installment of interest under this Note is not paid within ten (10) days after
      the date on which it is due, Borrower shall immediately pay a late charge equal
      to ten percent (10%) of such installment to the Lender to compensate the Lender
      for administrative costs and expenses incurred in connection with such late
      payment. Borrower agrees that the actual damages suffered by the Lender because
      of any late installment payment are extremely difficult and impracticable to
      ascertain, and the late charge described in this Section represents a reasonable
      attempt to fix such damages under the circumstances existing at the time this
      Note is executed. The Lender's acceptance of any late charge shall not
      constitute a waiver of any of the terms of this Note and shall not affect the
      Lender's right to enforce any of its rights and remedies against any Person
      liable for payment of this Note.

    

    6.
      Waivers.
      Borrower
      and all sureties, guarantors, endorsers and other Persons liable for payment
      of
      this Note (a) waive presentment, demand for payment, protest, notice of demand,
      dishonor, protest and nonpayment, and all other notices and demands in
      connection with the delivery, acceptance, performance, default under, and
      enforcement of this Note; (b) waive the right to assert any statute of
      limitations as a defense to the enforcement of this Note to the fullest extent
      permitted by law; (c) consent to all extensions and renewals of the time of
      payment of this Note and to all modifications of this Note by the Lender and
      Borrower without notice to and without in any way affecting the liability of
      any
      Person for payment of this Note; and (d) consent to any forbearance by the
      Lender and to the release, addition, and substitution of any Person liable
      for
      payment of this Note and of any or all of the security for this Note without
      notice to and without in any way affecting the liability of any Person for
      payment of this Note.

    

    7.
      Default.
      The
      Loan
      Agreement provides, among other things, for the acceleration of the unpaid
      principal balance and accrued interest under this Note upon the occurrence
      of
      certain events. The Lender, at its option and without notice to or demand on
      Borrower or any other Person, may terminate any or all obligations which it
      may
      have to extend further credit to Borrower and may declare the entire unpaid
      principal balance of this Note and all accrued interest thereon to be
      immediately due and payable upon the occurrence of any Event of
      Default.

    

    8.
      Application
      of Payments. Upon
      the
      occurrence of any Event of Default, the Lender, at its option, shall have the
      right to apply all payments made under this Note to principal, interest, and
      other charges, fees, costs and expenses payable by Borrower under this Note
      or
      in connection with the Loan in such order and amounts as the Lender may
      determine in its sole and absolute discretion.

    

    9.
      Modifications;
      Cumulative Remedies; Loss of Note; Time of Essence. No
      modification or waiver by the Lender of any of the terms of this Note shall
      be
      valid or binding on the Lender unless such modification or waiver is in writing
      and signed by the Lender. The Lender's rights and remedies under this Note
      are
      cumulative with and in addition to all other legal and equitable rights and
      remedies which the Lender may have in connection with the Loan. The headings
      to
      sections of this Note are for convenient reference only and shall not be used
      in
      interpreting this Note. If this Note is lost, stolen, or destroyed, upon
      Borrower's receipt of a reasonably satisfactory indemnification agreement
      executed by the Lender, or if this Note is mutilated, upon the Lender's
      surrender of the mutilated Note to Borrower, Borrower shall execute and deliver
      to the Lender a new promissory note which is identical in form and content
      to
      this Note to replace the lost, stolen, destroyed or mutilated Note. Time is
      of
      the essence in the performance of each provision of this Note by
      Borrower.

    

    10.
      Attorneys'
      Fees. If
      Borrower defaults under any of the terms of this Note, Borrower shall pay all
      costs and expenses, including without limitation attorneys' fees and costs,
      incurred by the Lender in enforcing this Note immediately upon the Lender's
      demand, whether or not any action or proceeding is commenced by the
      Lender.

    

    11.
      Applicable
      Law; Prepayment; Successors. This
      Note
      shall be governed by and interpreted in accordance with the laws of the State
      of
      California. Borrower shall have the right to prepay all or part of the
      outstanding principal balance of this Note at any time without payment to the
      Lender of a prepayment fee or charge. This Note shall be the joint and several
      obligation of all Persons executing this Note as Borrower and all sureties,
      guarantors, and endorsers of this Note, and this Note shall be binding upon
      each
      of such Persons and their respective successors and assigns. This Note shall
      inure to the benefit of the Lender and its successors and
      assigns.

    
      
        
        

      

      
        -64-

        
          

        

      

      
        
        

      

    

    

    12.
      Index. If
      the
      Index ceases to be made available, the Lender shall select an alternate index
      as
      a substitute for the Index (the "Substituted Index") which, in the Lender's
      good
      faith judgment, is comparable to the Index and which is not likely to result
      in
      the Note Rate being substantially different than if such prior Index had
      continued to be made available. In such event, the Lender shall adjust the
      percentage point spread set forth in Section 2.2 above (the "Spread") based
      on
      the value of the Substituted Index as of the last preceding date on which the
      interest rate was adjusted or, if no such adjustment has yet occurred, as of
      the
      date of this Note, such that the sum of the Substituted Index and the adjusted
      Spread equals the sum of the prior Index plus the prior Spread. Borrower
      acknowledges and agrees that (a) the Index represents an index which is quoted,
      published or announced from time to time by the financial institution identified
      in Section 2.1(b) above as an index for variable interest rates; (b) the Index
      does not represent the lowest interest rate charged by the Lender; and (c)
      loans
      may be made by the Lender at, above, or below the Index. This Note is secured
      by
      one or more security or pledge agreements dated the same date as this Note
      executed in favor of the Lender, as secured party.

    

    

    

    
      	 	
              Borrower:

            	 
	 	
              CRESA
                Partners of Orange County, LP, 

            	 
	 	
              a
                Delaware limited partnership

            	 
	 	 	 
	
              By:
                

            	
              CRESA
                Partners-West, Inc., 

            	 
	 	
              a
                California corporation

            	 
	
              Its:

            	
              General
                Partner

            	 
	 	 	 
	
              By:
                

            	
              /s/
                Kevin John Hayes

            	 
	 	
              Kevin
                John Hayes, President

            	 
	 	 	 

    

    

    -65-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]