Document:

Sale of LLC Interest Agreement

 Exhibit 10.1 
 SALE OF LLC INTEREST AGREEMENT 
 THIS SALE OF LLC INTEREST AGREEMENT (this
“Agreement”) is dated as of October 31, 2012 (the “Effective Date”), and is made and entered into by and between San Rafael Distributing, Inc., an Arizona corporation (“Buyer”) and Calavo
Growers, Inc., a California corporation (“Seller”), in connection with Seller’s sale of all of its interest in Maui Fresh International, LLC, a California limited liability company (the “Company”) to Buyer, the
other member of the Company. 
  

	 	A.	Seller is the beneficial and record owner of 50% of the membership interests in the Company, and Buyer is the beneficial and record owner of the remaining 50% of the
membership interests in the Company. 

  

	 	B.	Seller desires to sell to Buyer and Buyer desires to purchase from Seller all of Seller’s membership interest in the Company (the “Seller’s
Interest”) on the terms and conditions set forth in this Agreement. 

 Therefore, Buyer and Seller agree
as follows: 
 ARTICLE I 
 SALE AND PURCHASE 
 1.1 Sale and Purchase of Seller’s
Interest. On the Effective Date, Seller shall sell, assign, and transfer to Buyer all of the Seller’s Interest in the Company, and Buyer shall purchase, acquire, and accept the Seller’s Interest from Seller, all upon the terms and
conditions set forth in this Agreement. 
 1.2 Purchase Price. The purchase price for the Seller’s Interest
is Two Million, Six Hundred Twenty-Nine Thousand, Two Hundred Fourteen Dollars ($2,629,214) (the “Purchase Price”). 
 1.3 Payment of the Purchase Price. 
 1.3.1 Down
Payment. On the Effective Date, Seller shall deliver to Buyer, by wire transfer, a down payment for Seller’s Equity Payment in the amount of Three Hundred Thousand Dollars ($300,000) (“Down Payment”). 

1.3.2 Equity Promissory Note. On the Effective Date, Seller shall deliver to Buyer a Secured Promissory Note in the form of
that attached hereto as Exhibit “A” (the “Equity Promissory Note”) in the amount of Nine Hundred Ninety-One Thousand, Five Hundred Twenty Dollars ($991,520). The Equity Promissory Note shall be secured by a pledge of
Buyer’s entire ownership interest in the Company, which pledge agreement shall be in the form of that attached hereto as Exhibit “B” (the “Pledge Agreement”), and shall be guaranteed by Francisco Clouthier in the form
of that attached hereto as Exhibit “C” (the “Guaranty”). Buyer shall also deliver to Seller a signed UCC-1 Statement, suitable for filing in the State of California. 

1.3.3 Goodwill Promissory Note. On the Effective Date, Seller shall deliver to Buyer a Secured Promissory Note in the form
of that attached hereto as Exhibit “D” (the 

 
“Goodwill Promissory Note”) in the amount of One Million, Three Hundred Thirty-Seven Thousand, Six Hundred Ninety-Four Dollars ($1,337,694). The Goodwill Promissory Note shall
also be secured by the Pledge Agreement and guaranteed by the Guaranty. 
 ARTICLE II 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER 
 Seller hereby represents and warrants to Buyer, and covenants with Buyer, as follows: 
 2.1 Authority and Capacity. Seller is a corporation duly organized, validly existing, and in good standing under the laws of the State of California and has all requisite power, authority
and capacity to enter into this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby. No approval or consent of any persons other that Seller is necessary. 

2.2 Agreement Will Not Cause Breach or Violation. The execution, delivery and performance of this Agreement by Seller does
not and the consummation of the transaction contemplated hereby will not (a) conflict with any provision of Seller’s charter documents; (b) result in a breach of or default under any other agreement to which Seller is a party or by
which it is bound; or (c) violate any law applicable to Seller or any judgment, order, injunction, decree or award of any court, arbitrator, administrative agency or governmental body applicable to or binding upon Seller. 

2.3 Binding Agreement. This Agreement has been duly and validly executed and delivered by Seller and constitutes
Seller’s valid and binding agreement, enforceable against Seller in accordance with and subject to its terms. 
 2.4
Title to Seller’s Interest. Seller is the lawful record and beneficial owner of all of Seller’s Interest, free and clear of any liens, claims, agreements, charges, security interests and encumbrances whatsoever. On the
Effective Date, the Operating Agreement of the Company showing ownership of the membership interests of the Company shall be amended to memorialize this transaction and to show that Buyer owns 100% of the membership interests in the Company, subject
to the terms of this Agreement and the Pledge Agreement. Seller shall sign such documents and provide such certificates as may be required to evidence the sale of Seller’s Interest. 

2.5 Absence of Liabilities. To the actual knowledge of Art Bruno (“Bruno”), without duty of inquiry or
investigation, there are no material debts, liabilities or obligations of any nature, whether accrued, absolute, contingent, or otherwise, that are not reflected on the Company’s balance sheet, except for a contingent liability in connection
with a dispute between the Company and its workers’ compensation carrier in the approximate amount of Six Thousand Dollars ($6,000) (the “Carrier Claim”). If the carrier prevails, Buyer and Seller agree to share equally in the
cost. 
 2.6 Compliance with Laws. To the actual knowledge of Bruno, the Company has not received notice that it
is in violation of any applicable federal, state, or local statute, law, ordinance, or regulation affecting the operation of the Company’s business. 
 2.7 Absence of Litigation. To the actual knowledge of Bruno, the Company has not received notice of any pending or threatened suit, action, arbitration, or legal or administrative proceeding
or investigation affecting the Company or its business, except for the Carrier Claim. 

 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby represents
and warrants to Seller as follows: 
 3.1 Authority and Capacity of Buyer; No Default of Company. Buyer has all
requisite power, authority and legal capacity to enter into this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Buyer
does not and the consummation of the transaction contemplated hereby will not (a) conflict with any provision of the Buyer’s charter documents; (b) result in a breach of or default under any other agreement to which the Buyer or the
Company is a party or by which either is bound; or (c) violate any law applicable to Buyer, or any judgment, order, injunction, decree or award of any court, arbitrator, administrative agency or governmental body applicable to or binding upon
Buyer. There are no restrictions on the sale, transfer, or pledge of the Company membership interests in the any contracts to which the Company is a party. 
 3.2 Binding Agreement. This Agreement has been duly and validly executed and delivered by Buyer and constitutes Buyer’s valid and binding agreement, enforceable against Buyer in
accordance with and subject to its terms. 
 3.3 Buyer’s Knowledge of Company. Buyer has owned 50% of the
Company since the formation of the Company, and has been significantly involved in all aspects of the operations and management of the Company. Buyer is completely familiar with the business, technologies, financial condition, risks, and prospects
of the Company, and Seller has made no representation or warranty regarding the Company, its business, technologies, financial condition or prospects. Seller is selling Seller’s Interest without representation, warranty, promise, or guarantee
of any kind or nature (except as set forth in Article II), and Buyer is purchasing Seller’s Interest based entirely on Buyer’s knowledge of the Company, and without reliance on any information or representations made or allegedly made by
Seller, its employees or agents. 
 3.4 Investment Representations. Buyer is acquiring the Seller’s Interest
for Buyer’s own account and is not acquiring the Seller’s Interest with a view to or for sale in connection with any distribution thereof within the meaning of the Securities Act of 1933, as amended. 

ARTICLE IV 

COVENANTS OF BUYER; POST-CLOSING MATTERS 
 4.1 Sublease. The Company is party to a sublease for certain premises located at 1601 East Olympic Avenue, Bay 509-510, Los Angeles, California 90021, dated as of July 27, 2011, pursuant to
which Witt and Perricone are the Sublessors and Los Angeles Wholesale Produce Market, LLC is the Landlord (the “Sublease”). Buyer shall use its best efforts to have Seller released as a guarantor of the Sublease effective as of the
Effective Date; provided, however, that Buyer’s obligations shall be limited to requesting that Sublessors agree to release Seller from its guaranty. Buyer shall not exercise its option to extend the term of the Sublease or otherwise extend the
term or expand the premises beyond the term and square footage leased under the Sublease as of the Effective Date or otherwise enter into any agreement or take any action that would increase or extend the obligations of Buyer under the Sublease
unless and until 

 
Seller has been released as guarantor under the Sublease. If any notice of Buyer’s purchase of Seller’s Interest or any consent of Sublessors or the Landlord is required under the
Sublease (including by incorporation of the terms of the master lease), Buyer shall deliver such notice or obtain such consent. 

4.2 Employees. Two employees of Seller (Paul Stanke and Susan Arenyz) will terminate their employment with Seller and Buyer
will cause those employees to be hired by the Company, effective as of the day after the Effective Date. On the Effective Date, Seller shall pay all required compensation and employee-related benefits directly to Stanke and Arenyz through the
Effective Date. In addition, Seller shall, at Seller’s expense, continue to provide health insurance coverage to Stanke and Arenyz through Seller’s payment of COBRA costs for a period not to exceed ninety (90) days following the
termination of their employment with Seller. 
 4.3 Notification of Transaction. Seller shall make such filings
with the Securities and Exchange Commission as may be required in connection with this transaction. Buyer and Seller may make such public announcements (including, without limitation, press releases and announcements in trade and industry
publications and publications of general interest) as each deems appropriate; provided, however, that such public announcements shall be subject to review and approval by the other party, to be granted or denied within three business days of
request, with consent not to be unreasonably withheld and with silence being deemed consent. The parties shall reasonably cooperate with each other in making such announcements and filings. 

4.4 Trademarks and Tradenames. As of the Effective Date, Seller shall assign to the Company, to the extent owned by Seller,
without warranty, the sole and exclusive right to use the names “Maui Fresh,” “M Fresh,” “Maui Fresh International,” “Maui Fresh International, LLC,” and any similar name or forms thereof, and Seller shall
have no right to use and of the foregoing names from and after the Effective Date; provided, however, that Buyer acknowledges that Seller operates a business under the name “Maui Fresh International, Inc.” and agrees that Seller shall have
such reasonable time as may be required to formally change the name of such corporation to a corporate name that does not include the words “Maui Fresh”. Under no circumstances shall Buyer have any right to use the name “Calavo”,
“Calavo Growers, Inc.”, or any other tradename or trademark owned or used by Seller. 
 4.5.
Indemnification. 
 4.5.1 Indemnification by Buyer. Buyer will indemnify, defend, and hold Seller,
and each of Seller’s officers, directors, employees, and agents harmless from and pay any and all losses, costs, damages, claims, obligations, liabilities and expenses (including, without limitation, all reasonable attorneys’ fees and
costs), whether known or unknown, contingent or vested, matured or unmatured, and whether or not resulting from third-party claims (collectively, “Claims”), directly or indirectly resulting from, relating to, arising out of or
attributable to any of the following: (a) any breach of any representation or warranty Buyer has made in this Agreement; (b) any breach, violation or default by Buyer of any covenant, agreement or obligation of Buyer in this Agreement;
(c) any event arising from the operation and ownership of, or conditions first occurring with respect to, the Company as of and from the Effective Date, and (d) any Claims arising out of or in connection with the Sublease, including
without limitation, any failure of payment or performance by the Company owing under the Sublease and any Claims arising out of the failure of the Sublessors or Landlord to consent to this transaction, if such consent is required. 

 4.5.2 Indemnification by Seller. Seller shall indemnify, defend, and hold
Buyer, and each of Buyer’s members, officers, directors, employees, and agents harmless from and pay any and all losses, costs, damages, claims, obligations, liabilities and expenses (including, without limitation, all reasonable
attorneys’ fees and costs), whether known or unknown, contingent or vested, matured or unmatured, and whether or not resulting from third-party claims (collectively, “Claims”), directly or indirectly resulting from, relating
to, arising out of or attributable to any of the following: (a) any breach of any representation or warranty Seller has made in this Agreement; (b) any breach, violation or default by Seller of any covenant, agreement or obligation of
Seller in this Agreement; (c) any grossly negligent or willful misconduct of Seller in connection with the Company occurring prior to the Effective Date. 
 4.6 Buyer to Retain Ownership. Except as provided below, until or unless the Equity Promissory Note and the Goodwill Promissory Note have been or, in connection with such transaction, will
be paid in full, Buyer shall not: (a) sell, assign, pledge, or transfer (whether voluntarily, involuntarily, by operation of law, by gift or for consideration) any membership interest in the Company or sell the Company; and (b) without the
prior written consent of Seller, allow the Company to sell any of its assets, except in the ordinary course of business, or issue any new or additional membership interests or admit any new members to the Company, or amend its operating agreement.
Any such prohibited sale, pledge or other transfer or issuance of new membership interests shall be null and void, and the Company shall not be required to transfer or enter on its books any new or transferred membership interests in the Company
until the Equity Promissory Note and the Goodwill Promissory Note have been paid in full. Until such time, Buyer shall continue to operate and manage the Company and its assets in a good and prudent manner, in accordance with past practice.
Notwithstanding the foregoing, all or part of the membership interest of Buyer in the Company may be assigned and transferred to Francisco Clouthier, or any entity in which Francisco Clouthier (or a grantor trust in which Francisco Clouthier is the
sole trustee or a co-trustee with his spouse) is the sole owner thereof (subject to any community property interest); provided, however, that Francisco Clouthier shall confirm in writing at the time of the transfer the continuing validity and
enforceability of the Pledge Agreement and the Guaranty. In the event of such assignment and transfer, and conditioned upon Seller’s receipt of the above-described confirmation by Francisco Clouthier, the obligations of Buyer shall be assumed
by Francisco Clouthier or the transferee entity and Buyer shall be relieved of any further obligation under the Equity Promissory Note and the Goodwill Promissory Note. 
 4.7 Amendment to Operating Agreement; Issuance of Certificates. Immediately following the Effective Date, Buyer shall cause the Company to amend its Operating Agreement to document the
restrictions described in Paragraph 4.6 above, and to authorize and require the issuance of membership certificates evidencing the restrictions set forth in Paragraph 4.6, above, and a reference to the Pledge Agreement. 

4.8 Termination of Joint Venture Agreement. Concurrently with the sale of the Seller’s Interest to Buyer, the Maui
Fresh International, LLC Joint Venture Agreement dated as of April 13, 2006 will automatically, and without further action by the parties, be terminated and neither party shall have any further rights thereunder.

 ARTICLE V 
 MISCELLANEOUS 
 5.1 Entire Agreement. This Agreement
constitutes the entire understanding and agreement of the parties relating to the subject matter hereof and supersedes any and all prior understandings, agreements, negotiations and discussions, both written and oral, between the parties hereto with
respect to the subject matter hereof. 
 5.2 Governing Law. This Agreement shall be construed, interpreted and
enforced in accordance with, and shall be governed by, the laws of the State of California without reference to, and regardless of, any applicable choice or conflicts of laws principles. 

5.3 Counterparts and Signatures. This Agreement may be executed in any number of counterparts and by the several parties
hereto in separate counterparts, each of which shall be deemed to be an original, and all of which together shall constitute one and the same Agreement. Signatures by facsimile or electronic means shall be valid and enforceable; provided, however,
that the Buyer shall deliver to the Seller the originally signed Equity Promissory Note, Goodwill Promissory Note, and Pledge Agreement. 
 5.4 Further Assurances. Each of the parties hereto shall from time to time at the request of the other party hereto, and without further consideration, execute and deliver to such other
party such further instruments of assignment, transfer, conveyance and confirmation and take such other action as the other party may reasonably request in order to more effectively fulfill the purposes of this Agreement. 

5.5 Severability. The provisions of this Agreement will be deemed severable and the invalidity or unenforceability of any
provision will not affect the validity or enforceability of the other provisions hereof. If any provision hereof is determined by a court of competent jurisdiction or an arbitrator to be invalid or unenforceable, such provision shall be limited to
the extent necessary to make it valid and enforceable, or if necessary, severed from this Agreement, and the remainder of the Agreement shall be in full force and effect. 
 5.6 Attorneys’ Fees. If either party brings a claim or lawsuit against the other party to this Agreement to interpret or enforce any of the terms of this Agreement, or to interpret or
enforce the Equity Promissory Note, the Goodwill Promissory Note, or the Pledge Agreement, the prevailing party shall, in addition to all other damages, be entitled to reasonable attorneys’ fees and costs, costs of witnesses, and costs of
investigation from the non-prevailing party. 
 5.7 Amendment and Termination. This Agreement may be amended or
terminated only upon a writing executed by both Buyer and Seller. 
 5.8 Successors and Assigns. Subject to the
provisions of this Agreement relating to the transferability of Seller’s Interest, this Agreement shall be binding upon and inure to the benefit of Buyer and Seller and their respective successors and assigns. Whenever appropriate in this
Agreement, references to Buyer or Seller shall be deemed to refer to such company’s successors or assigns. 
 5.9
Dispute Resolution. 
 5.9.1 Arbitration. All disputes concerning this Agreement shall be settled by
arbitration, before one arbitrator, in accordance with the commercial arbitration rules of the American Arbitration Association then in effect. The arbitrator shall be selected in accordance with such commercial arbitration rules. A party is
entitled to initiate an arbitration proceeding if a dispute cannot be resolved amicably within ten days after the other party has been notified of 

 
the existence of the dispute. The arbitrator is authorized to grant injunctive relief and/or specific performance in addition to monetary relief. The arbitrator hereby is instructed to interpret
and enforce this Agreement in strict accordance with its terms, and in accordance with California law. All arbitration proceedings shall be held in Los Angeles, California. 
 5.9.2 Equitable Relief. Notwithstanding the foregoing, each party is entitled to bring an action for temporary or preliminary injunctive relief at any time in any court of competent
jurisdiction in order to prevent irreparable injury that might result from a breach of this Agreement. Furthermore, upon the occurrence of an event of default, Seller is entitled to exercise all of the rights and remedies described in this Agreement
and, at any time, to bring an action in a court of competent jurisdiction (or, at its election, to initiate an arbitration proceeding) for purposes of enforcing the terms of this Agreement. 

5.9.3 Award. The award of the arbitrator in any arbitration proceeding shall be final and may be enforced in any court of
competent jurisdiction, and an action to compel arbitration may be brought in any court of competent jurisdiction. The unsuccessful party to any arbitration proceeding or to any court action that is permitted by this Agreement shall pay to the
successful party all costs and expenses, including, without limitation, reasonable attorneys’ fees and the fees of the arbitrator, incurred therein by the successful party. EACH PARTY AGREES THAT, TO THE EXTENT PERMISSIBLE BY LAW, ALL RIGHTS TO
A TRIAL BY A JURY OF ANY CLAIM CONCERNING THIS AGREEMENT ARE ABSOLUTELY AND FOREVER WAIVED. 
 Executed as of the date first
above written. 
  

					
	Buyer:	 		 	
	
	San Rafael Distributing, Inc., an Arizona corporation
			
		 	By:	 	 /s/ Francisco Clouthier

		 		 	Francisco Clouthier
		 	Its:	 	President and Secretary
			
	Seller:	 		 	
	
	Calavo Growers, Inc., a California corporation
			
		 	By:	 	 /s/ Lecil E. Cole

		 	Its:	 	 Chief Executive OfficerEquity Secured Promissory Note

 Exhibit 10.2 
 EQUITY SECURED PROMISSORY NOTE 
  

			
	 $991,520.00
	  	October 31, 2012

 FOR VALUE RECEIVED, the undersigned, San Rafael Distributing, Inc., an Arizona corporation (the
“Borrower”), promises to pay to the order of Calavo Growers, Inc., a California corporation (the “Holder”), at 1141A Cummings Road, Santa Paula, California 93060 (or at such other place as the Holder
may from time to time designate to the Borrower), in lawful money of the United States, the principal sum of Nine Hundred Ninety-One Thousand, Five Hundred Twenty Dollars ($991,520.00), together with interest on the unpaid principal balance from and
after the date of this Promissory Note until paid at a rate equal to the average of Holder’s two credit facility costs from the preceding month, as it may change from time to time. Holder shall notify Borrower of the applicable interest rate so
calculated 10 days prior to the date scheduled for payment thereof. 
 Principal and interest shall be due and payable in 36
equal monthly payments of principal (in the amount of $27,542.22 each) together with interest accrued on the unpaid principal balance, each payment being due and payable on the first day of each month commencing on December 1, 2012. By way of
example, if the average of Holder’s two credit facility costs for the month of November 2012 is 1.75%, the accrued interest due and payable on December 1, 2012 (together with the monthly installment of principal), would be $1,445.97
($991,520 x 1.75% = $17,351.60 ÷ 12 = $1,445.97). The entire amount of principal and all accrued and unpaid interest shall be due and payable on November 1, 2015. 
 This Promissory Note is given to the Holder in connection with the Borrower’s purchase of Holder’s membership interest in Maui Fresh International, LLC, a California limited liability company
(the “Company”) pursuant to the Sale of LLC Interest Agreement dated as of October 31, 2012 (the “Sale Agreement”). Pursuant to the Sale Agreement, Borrower is also entering into a second
promissory note (the “Goodwill Note”). 
 The payment of this Promissory Note is secured by a pledge of
all of the membership interest of the Company owned by Borrower. The terms and conditions of the pledge of the membership interest are set forth in a Pledge and Security Agreement between the Borrower and the Holder (the “Security
Agreement”) that is dated as of the same date as this Promissory Note. Notwithstanding the existence of security for the payment of this Promissory Note, the Borrower shall at all times remain liable to the Holder for the full and
punctual payment of all principal, interest and other amounts that are owed under this Promissory Note. 
 Payment and
performance of this Note is absolutely and unconditionally guaranteed by Francisco Clouthier on the terms of the Guarantee executed concurrently herewith. 
 Each payment made under this Promissory Note shall be applied (i) first, to fees, costs and expenses incurred by the Holder in enforcing this Promissory Note upon the occurrence of an Event of
Default (as defined below), (ii) second, to accrued interest, and (iii) third, to the principal balance of this Promissory Note. Any principal, interest or other amount payable under this Promissory Note that is not paid when due shall
bear interest from and after the date when due until paid in full at the rate of twelve percent (12%) per annum (the “Default Rate”). Nothing in the preceding sentence shall be interpreted as a waiver or limitation of
the Holder’s right to compel payment of all amounts hereunder when due and payable. 

  
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 If the Borrower is not in default under this Promissory Note, the Borrower shall have the
privilege of prepaying, without penalty or premium, the outstanding principal balance hereof in whole or in part at any time or from time to time. Any such prepayment must be accompanied by full payment of all interest then accrued and unpaid on the
principal amount being prepaid. 
 The Borrower’s failure to (i) pay when due any principal, accrued interest or other
amount owed under this Promissory Note or under the Goodwill Note, or (ii) perform any agreement contained in the Sale Agreement or the Security Agreement, or the failure of any representation or warranty of the Borrower that is contained in
the Sale Agreement or the Security Agreement to be true, if the failure under either (i) or (ii) is not remedied in full within ten (10) days after receipt of written notice from the Holder, shall constitute an “Event of
Default.” 
 Upon the occurrence of an Event of Default, the Holder shall have the right, at its sole option, at
any time thereafter, (i) to declare the entire balance of principal and accrued interest on this Promissory Note and the Goodwill Note to be immediately due and payable, (ii) to exercise all of its rights as a secured party under the
Security Agreement with respect to the membership interests pledged by the Borrower, and (iii) to exercise any and all of its other rights and remedies that are provided under the Security Agreement and applicable law. All rights and remedies
of the Holder are cumulative and concurrent and may be pursued singularly, successively or together, at the sole discretion of the Holder, and whenever and as often as the Holder deems necessary or appropriate. 

If, after not less than 30 days after an Event of Default which has not been cured, an attorney is engaged by the Holder to undertake
collection, or enforce or construe any provision of this Promissory Note or the Goodwill Note, the Security Agreement, or the Sale Agreement, with or without the filing of any arbitration proceeding or legal action by the Holder, then the Borrower
shall pay on demand all reasonable attorneys’ fees and other costs and expenses incurred by the Holder in connection therewith. If an action (arbitration or court proceeding) is brought to enforce the terms of this Promissory Note or the
Goodwill Note, then the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred in connection therewith. 
 The Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of protest, notice of default and any and all lack of diligence or delay by the Holder in the collection or
enforcement of this Promissory Note. The Holder shall not be deemed to have waived any right or remedy that it has under this Promissory Note, the Security Agreement or applicable law unless it has expressly waived the same in writing or unless this
Promissory Note or the Security Agreement expressly provides a period of time in which the right or remedy must be exercised. The waiver by the Holder of a right or remedy shall not be construed as a waiver of any other right or remedy or of any
subsequent right or remedy of the same kind. 
 If any provision of this Promissory Note is determined by an arbitrator or a
court of competent jurisdiction to be invalid, illegal or unenforceable, that provision shall be deemed 

  
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severed from this Promissory Note, and the validity, legality and enforceability of the remaining provisions of this Promissory Note shall remain in full force and effect. If the Holder ever
receives any interest payment on this Promissory Note in excess of the maximum interest permitted by applicable law, such excess amount shall, at the Holder’s option, be applied to the reduction of the unpaid principal balance of this
Promissory Note or returned to the Borrower. 
 Time is of the essence with respect to every provision hereof. This Promissory
Note shall be governed by the internal laws of the State of California without giving effect to conflict-of-law principles. 

IN WITNESS WHEREOF, the Borrower has executed and delivered this Promissory Note as of the date first written above. 

 

			
	BORROWER
	
	San Rafael Distributing, Inc., an Arizona corporation
		
	By:	 	                 /s/
Francisco Clouthier

		 	                    Francisco Clouthier
	Its:	 	President and Secretary

  
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