KNOX. LEMMON & ANAPOLSKY, LLP
LOUlS J. ANA POLSK Y (SBN 088485)
2 DAVID P. E. BURKETT (SBN 241896)
2339 Gold Meadow Way. Suite 205
3 Gold River, CA 95670
Telephone: (9 16) 498-9911
4 Facsimile: (9 16) 498-9991

E-FILED
12/17/2019 9:19 AM
Superior Court of California
County of Fresno
By: A. Rodriguez, Deputy

5 Attorneys for Plaintiffs EDWARD TANG:
ROBERT TANG: and VIRG INIA TSAI
6
7
8
SUPERIOR COURT OF CALI FORNIA

9
IN AND FOR THE COUNTY OF FRESNO

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11

EDWARD TANG; ROBERT TANG;
and VIRGIN IA TSAI,

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13

Plaintiffs,

14 v.

I 5 TROY EQUIPMENT LEASING, LLC,
a California Limited Liability
16 Company; TERRENCE J. COX,
KATHLEEN MURPHY and DOES 1
17 THROUGH 100,

18

CASE NO. 19CECG04509
COMPLAINT FOR:
(1) BREACH OF CONTRACT;
(2) DECLARATORY RELIEF FORECLOSURE OF SECURITY
INTEREST;
(3) COMMON COUNT - MONEY LENT;
(4) FRAUD;
(5) BREACH OF FIDUCIARY DUTY; and
(6) BREACH OF GUARANTY
AGREEMENT

Defendants.

19 11----- - -- -- - - -- - -20

Plaintiffs EDWARD TANG, ROBERT TANG and VIRGIN IA TSAI allege as fo llows:

21

I.

At all times relevant herein, Plaintiff EDWARD TANG was and is an individual

22 residing in the County of Fresno', State of Cali fo rnia.
23

2.

At all times relevant herein, Plainti ff ROB ERT TANG was and is an individual

24 residing in the County of Sacramento, State of California.
25

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At al l times relevant herein, Plainti ff VIRGINIA TSAI was and is an individual

26 residing in the County of Sacramento, State of California. Plaint iffs EDWARD TANG, ROBERT
27 TANG and VIRGINI A TSAI are collectively referred to herein as " Plaintiffs" and individually as a
28 "Plaintiff."
I

COMPLAI NT FOR: ( I ) BREACH OF CONTRACT; (2) DEC LARATORY RELIEF; COLLATERA L; (3) COMMON
COUNTS: (4) FRA UD: (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARA NTY AGR EEMENT

 4.

At all times re levant herein, Defendant TROY EQUIPMENT LEASING, LLC

2 ("TROY") was and is a California limited liability company doing business in the County of
3 Madera, State of California. Defendant TERRENCE J. COX formed TROY on June 6, 201 1.
4 Plaintiffs are informed and believe and there in a llege that TROY is in the business of " heavy
5 equipment rental," including the leasing o f mining equipment.

5.

6

At all times relevant herein, Defendants TERRENCE J. COX ("COX") and

7 KATHLEEN MURPHY ("MURPHY" ) were and are individuals, residing in the County of Fresno,
8 State of California. Plaintiffs are informed and believe and thereon allege that, at all times relevant
9 herein, COX was and/or is a managing member of TROY EQUIPMENT LEAS ING, LLC. COX
10 and TROY EQUIPMENT LEASING, LLC are collectively referred to herein as ·'Defendants" and
11

individually as a " Defendant."

12

6.

The true names and capacities, w hether indi vidual , corporate, associate or

13 otherwise, of Defendants sued herein as DOES 1 through l 00, inclusive, are presently unknown to
14 P laintiffs, who therefore sue these defendants by such fictitious names. Plaintiffs wi ll seek leave to
15 amend this Complaint to allege the true names and capacities of DOES I through l 00, inclusive,
16 when the same have been ascertained.

17

7.

Plaintiffs are informed and believe and thereon allege that at al l times relevant to

I 8 this action, the Defendants. including DOES 1 through I 00, inclusive, were responsible in some
19 manner for the acts and omissions alleged in this Complaint, and that Plaintiffs' damages, both
20 existing and prospective, are, were, and will be proximately caused by the acts and omissions of
21 the other Defendants, including DOES I throug h I 00, inclusive.
22

8.

Plaintiffs are informed and believe and thereon allege that Defendants, including

23 DOES I through I 00, inclus ive, are and were the agents, servants, employees, partners, joint
24 venturers, subsidiaries, parent corporations, and successors-in- interest of each of the remaining
25 Defendants, and were acting within the course. scope, and purpose of such agency, employments,
26 partnership, joint venture, o r relationship.
27 II

28 II
2
COMPLAI NT FOR: ( I ) BREAC H OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (S) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 FACTUAL ALLEGATIONS COMMON TO ALL CAUSES OF ACTION
2

9.

In October 2013, Defendant COX so licited Plai ntiff EDWA RD TA G

3 (''EDWARD") to invest money in Defendant TROY. Defendant COX represented to EDWARD
4 that. in return for each investment of $50.000. EDWARD would receive: a) a secured Promissory
5 Note in the amount of $50,000 memorializing the investment; b) a UCC Financ ing Statement and
6 Security Agreement collateralizing the Promissory Note; c) a one (I%) percent membership
7 interest in Defendant TROY; d) an Amended Operating Agreement for TROY EQUIPMENT
8 LEASI G. LLC for review and signature; and, e) stock ownership in a Canadian corporation
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9 known as Constellation Mines, Ltd ("Constellation Mines"). COX explained to EDWARD that

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12 lease of its mining equipment; and. that Constellation Mines was mining gold at various sites
13 located in Canada, wherein gold mining claims had been acquired.

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Based on the representations of COX, EDWARD loaned $50,000 to TROY. In

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16 Financing Statement and a Securi ty Agreement. a copy of which is attached hereto, collectively
17 marked Exhibi t A and fully incorporated by reference herein. EDWARD understood and trusted

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18 that COX would take the necessary actions to file the UCC Financing Statement with the

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19 California Secretary of State. Prior to the loan of $50,000, COX did not provide EDWARD with
20 the Private Placement Offering Memorandum. even though COX had so li cited and raised
2 1 substantial funds from other investors in TROY. In add ition. COX has never provided EDWARD
22 with an Amended Operating Agreement for TROY EQU IPM ENT LEAS ING. LLC or a share
23 certificate evidencing his stock ownership in Constel lation Mi nes.
24

11.

In October 20 13, Defendant COX solicited Plaintiffs ROBERT TA G

25 ("'ROBERT'') and VIRGINIA TSA I ("V IRGI1 IA'') to invest money in Defendant TROY.
26 Defendant COX represented to ROBERT and VIRGINIA that. in return for each investment of
27 $50,000. ROBERT and VIRG IN IA would recei ve: a) a secured Prom issory Note in the amount of
28 $50,000 memorializing the investment; b) a UCC Financing Statement and Security Agreement
3
COMPLAINT FOR: ( 1) BREACH OF CONTRACT; (2) DECLA RATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUA IRY DUTY; (6) BR EACH OF GUA RA NTY AG REEME NT

 collateralizing the Promissory Note; c) a one ( I%) membership interest in Defendant TROY; d) an
2 Amended Operating Agreement for TROY EQUIPMENT LEASING, LLC for review and
3 signature; and, e) stock ownership in a Canadian corporation known as Constellation Mines, Ltd.
4 COX explained to ROBERT and VIRGINIA that TROY had purchased and would continue to
5 purchase mining equipment; that TROY would lease the mining equipment to Constellation Mines;
6 that TROY would receive rental income from the lease of its mining equipment; and, that
7 Constellation Mines was mining gold at various sites located in Canada, wherein gold mini ng
8 claims had been acquired.
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Based on the representations of COX, ROBERT and VIRGIN IA loaned $50,000 to

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I I October 24, 2013, a UCC Financing Statement and a Security Agreement, a copy of which is

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12 attached hereto, collectively marked Exhibit B and fully incorporated by reference herein.
13 ROBERT and VIRGINIA understood and trusted that COX would take the necessary actions to file

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14 the UCC Financing Statement with the California Secretary of State. Prior to the loan of $50,000,

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15 COX did not provide ROBERT and VIRGIN IA with the Private Placement Offering

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16 Memorandum, even though COX had solicited and raised substantial funds from other investors in

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17 TROY. In addition, COX has never provided ROBERT and VIRGINIA with an Amended

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18 Operating Agreement for TROY EQUIPMENT LEASING, LLC or a share certificate evidencing

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19 their stock ownership in Constellation Mines.
20

13.

In March 2014, Defendant COX again solicited ROBERT and VIRGINIA to invest

21 additional money in Defendant TROY. Defendant COX represented to ROBERT and VIRGINIA
22 that, in return for an additional investment of $50,000, ROBERT and VIRGINIA would receive:
23 a) a secured Promissory Note in the amount of $50,000 memorializing the investment; b) a UCC
24 Financing Statement and Security Agreement collateralizing the Promissory Note; c) an additional
25 one (I%) membership interest in Defendant TROY; d) an Amended Operating Agreement for
26 TROY EQUIPMENT LEASING, LLC for review and signature; and, e) additional stock
27 ownership in a Canadian corporation known as Constellation Mines, Ltd. COX explained to
28 ROBERT and VIRGINIA that TROY had purchased and would continue to purchase mining
4
COMPLAI , T FOR: (I) BREACH OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNl S; (4) FRAUD; (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 equipment; that TROY would lease the mining equipment to Constellation Mines; that TROY
2 would receive rental income from the lease of its mining equipment; and, that Constellation Mines
3 was mining gold at various sites located in Canada, wherein gold mining claims had been acquired.
4

14.

Based on the representations of COX, ROBERT and VIRGINIA loaned an

5 additional $50,000 to TROY. In return, ROBERT and VIRGINIA received from COX a secured
6 Promissory Note dated March 4, 2014, a UCC Financing Statement and a Security Agreement, a
7 copy of wh ich is attached hereto, collectively marked Exhibit C and fully incorporated by reference
8 herein. ROBERT and VIRGINIA understood and trusted that COX would take the necessary
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9 actions to file the UCC Financing Statement with the California Secretary of State. Prior to the

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12 from other investors in TROY. In addition, COX has never provided ROBERT and VIRGIN IA
13 with an Amended Operating Agreement for TROY EQU IPMENT LEASING, LLC or a share

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14 certificate evidencing their stock ownership in Constellation Mines.
15

15.

On June 20, 201 1, COX formed Troy Investment Partners, LLC, a Californ ia

16 limited liability company. At all times relevant herein, COX was a manager of Troy Investment

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17 Partners, LLC. Plaintiffs are inforn1ed and believe and thereon allege that the business of Troy

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18 Investment Partners, LLC is mining. Troy Investment Partners owns stock in Constellation Mines

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19 and 536242 Yukon Inc., a Canadian corporation, which is also involved in mining.
20

16.

Plaintiffs are informed and believe and thereon allege that, at all times relevant

21 herein, COX owns and/or owned stock in Constellation Mines and 536242 Yukon Inc. , a Canadian
22 corporation.
23

17.

EDWARD is informed and believes and thereon alleges that he holds a one (I%)

24 percent membership interest in TROY. ROBERT and VIRGINIA are informed and believe and
25 thereon allege that they hold a one (1 %) percent membership interest in TROY. although, based on
26 their investment of $100,000, they were promised by COX that they own a two (2%) percent
27 membership interest in TROY. EDWARD, ROBERT and VIRGINIA do not know what stock, if
28 any, they own in Constellation Mining as they have never been provided share certificates
5
COMPLAI NT FOR: (I) BREACH OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUAIRY DUTY ; (6) BREA CH OF GUARANTY AGREEMENT

 evidencing their stock ownership. EDWARD, ROB ERT and V IRGIN IA are informed and believe
2 and thereon allege that they may also own stock in 536242 Yukon Inc., altho ugh they are uncertain
3 as to w he n they acquired the stock, how they acquired the stock o r why they own stock in 536242
4 Yukon Inc., as they have only recently learned of their potential stock ownership in this Canadian
5 corporation.

6

18.

Over the years, TROY and COX have made various interest payments to

7 EDWARD, ROBERT and V IRGINIA. The last interest payment received was in approximately
8 June 20 15. After June 20 15, COX repeatedly promised to EDWARD, ROBERT and V IRGIN IA
9 that they would continue to receive interest payments from TROY and that TROY would repay
10 their loans in full. EDWARD, ROBERT and V IRGINIA believed and trusted COX regarding his
I I promises that they would continue to recei ve interest payments and that TROY would repay their
12 loans in fu ll. In reliance on COX's promises, EDWARD, ROBERT and VIRGIN IA elected to
13 forbear from enforcement of their Prom issory Notes, UCC Financing Statement and Security
I 4 Agreement.
15

19.

COX has also periodically u pdated EDWARD, ROBERT, VIRG IN IA and the other

I 6 investo rs in TROY as to the mining operations at the go ld mining claims in Canada. The most
17 current update provided by COX was on July 3 1, 20 I 9, wherein COX represented as follo ws :

18
19

"The mine is in production (finally) and there is still a good two months of the
season left. Lots of time to produce gold. Although they ' ve only been running
w ith 3 people, they w ill begin double-shifting soon and run around the clock in the
next few days .

20
21
22

A ll the equipment is in good shape and running wel l. Everything is very orderly and
clean. This year, production has been about 40 oz in 60 hours of sluici ng. That
(oz/hr) is expected to improve as mining moves to richer areas of the claims (left of
the area current be ing processed). Note the li ght colored seam of quartz running
though the cut. This is very high grade material"

23

24

20.

Prior to the July 3 1, 20 19 communication, Plaintiffs are informed and believe and

25 thereon alleged that COX has represented to others that Conste llation M ines is not an operational
26 company; that the company was "empty" ; that the company had ·'no assets, no operations,
27 nothing"; and, that the company was only " set up to look at some things."

28 //
6
COMPLAI T FOR: ( I ) BREACH OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
CO UNT S; (4) FRA UD; (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 21.

On June 17, 20 19, Constellation Mines filed a document entitled "Changes

2 Regarding Directors" in Canada stating that COX resigned from the Board of Directors of
3 Constellation Mines, effective February 3. 2019. Plaintiffs are infom1ed and bel ieve and thereon
4 allege that in August 20 19, COX and Constellation Mines paid three former employees of
5 Constellation Mines $44,000 to settle claims of unpaid wages due and owing.

6

22.

Plaintiffs are informed and believe and thereon allege the COX was the President

7 and a Director of 536242 Yukon Inc. ; and, that COX resigned as President and Director on
8 February 3. 2019.

9

23.

Plaintiffs are informed and believe and thereon allege that COX resigned as

10 Manager of TROY on June 1, 2019; and, that COX resigned as Manager of Troy Investment
11 Partners, LLC on June I, 20 19.
12

24.

On or about September I , 20 19, Defendant COX signed a Guaranty Agreement, a

13 copy of which is attached hereto, marked Exhibit D and fully incorporated by reference herein.
14 Pursuant to the Guaranty Agreement, COX personally guaranteed repayment of the Promissory
15 Notes dated October 2 1, 20 I 3, October 24, 20 I 3 and March 4, 2014. together with all attorneys'
16 fees and expenses incurred by Plaintiffs in the collection of each of said Promissory Notes.
17

25.

On or about September 1, 20 19, Defendant MURPHY signed a Guaranty

18 Agreement, a copy of which is attached hereto, marked Exhibit E and fully incorporated by
I 9 reference herein. Pursuant to the Guaranty Agreement, MURPHY personally guaranteed
20 repayment of the Promissory Notes dated October 21, 20 13, October 24, 2013 and March 4, 20 14,
21

together with all attorneys' fees and expenses incurred by Plaintiffs in the collection of each of said

22 Promissory Notes.
23

FIRST CAUSE OF ACTION

24

BREACH OF CONTRACT

25

[against Defendants TROY, COX and MURPHY]

26

26.

Plaintiffs reallege herein by this reference each and every a llegation in Paragraphs I

27 through 25 , inclusive, of this Complaint as if fully set forth herein.
28 //
7
COMPLA I NT FOR: (I) BREACH OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD: (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 27.

On October 21, 2013, Plaintiff EDWARD loaned $50,000 to Defendant TROY.

2 Defendants COX and TROY provided Plaintiff EDWARD with a secured Promissory Note dated
3 October 2 L 2013 , a UCC Fi nancing Statement and Security Agreement (Exhibit A).

4

28.

Plaintiff EDWARD has performed all of the conditions, covenants, and promises

5 required on his part to be performed in accordance with the tem1s and conditions of the secured
6 Promissory Note dated October 2 1, 2013.
29.

7

Defendants TROY, COX and MU RPHY failed to perform all of the conditions,

8 covenants, and promises required on their part to be performed in accordance with the terms and
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9 conditions of the Promissory Note dated October 21 , 2013 , by failing to repay the principal amount

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10 of the $50,000 loan, together with all accrued and unpaid interest.

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As a result of the breach of the Promissory Note dated October 21 , 2013 , Plaintiff

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12 EDWARD has suffered damages in the amount of $50,000, together with all accrued and unpaid

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13 interest, or according to proof, plus interest at the legal rate.

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14

SECOND CAUSE OF ACTION

15

DECLARATORY RELIEF - FORECLOSURE OF SECURITY INTEREST

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Iagainst Defendant TROY)

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Plaintiffs reallege herein by this reference each and every allegation in Paragraphs I

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18 through 30, inclusive, of this Complaint as if fully set forth herein.

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32.

19

An actual controversy has arisen and now exists between Plaintiff EDWARD and

20 Defendant TROY concerning their respective rights and duties in that Plaintiff contends that he is
21

owed full payment of the secured Promissory Note dated October 2 1, 20 13; that said secured

22 Promissory Note has not been repaid; and, that as a result of the failure to repay said secured
23 Promissory Note, Plaintiff EDWARD is entitled to foreclose on the personal property described in
24 the UCC Financing Statement and Security Agreement that acts as security fo r the Promi ssory
25 Note. Defendant TROY di sputes these contentions and contends that Plaintiff EDWARD is not
26 entitled to foreclose on the personal property described in the UCC Financing Statement and
27 Security Agreement that acts as security for the Promissory Note.
28 //
8
COMPLAINT FOR: (I) BREA C H OF CONTRACT; (2) DEC LARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 33.

Plaintiff EDWARD desi res a judicial determination of his rights and duties and a

2 declaration as to whether he is entitled to foreclose on the personal property described in the UCC
3 Financing Statement and Security Agreement that acts as security for the secured Promissory Note.
4

34.

A judicial declaration is necessary and appropriate at this time under the

5 circumstances in order that Plaintiff EDWARD may ascertain his rights and duties as to the
6 foreclosure of the personal property described in the UCC Financing Statement and Security
7 Agreement that acts as security for the Promissory Note.

8

THIRD CAUSE OF ACTION

9

COMMON COUNT- MONEY LENT

10

[against Defendants TROY, COX and MURPHY!

11

35.

Pla intiffs reallege herein by this reference each and every all egation in Paragraphs 1

12 through 34, inclusive, of this Complaint as if fu lly set forth herein.
13

36.

Within the last four years, at Madera, California, Defendants TROY , COX and

14 MURPHY became indebted to Plaintiff EDWARD in the principal sum of $50,000. together with
15 all unpaid and accrued interest, for money lent by Plaintiff EDWARD to Defendant TROY and
16 COX at their request.

17

37.

Plaintiff EDWARD has repeatedly demanded payment from Defendants TROY,

18 COX and MURPHY. After making such demands, Defendants TROY, COX and MURPHY
19 confirmed their commitment to repay the monies owed.

20
21

38.

No payment has been made by Defendants TROY, COX and MURPHY to Plaintiff

EDWARD. There is now due and owing the sum of $50,000 together with all unpaid and accrued

22 interest. with interest at the legal rate.

23

FOURTH CAUSE OF ACTION

24

FRAUD

25

lagainst Defendant COX]

26

39.

Plaintiffs reallege herei n by this reference each and every allegation in Paragraphs 1

27 through 38, inclusive. of this Compla int as if fully set forth herein.

28 //
9
COMPLAINT FOR: (I) BREACH OF CONTRACT ; (2) DECLA RATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 40.

In October 2013, Defendant COX sol icited Plaintiff EDWARD to invest money in

2 Defendant TROY . De fendant COX represented to EDWARD that, in return for an investment of
3 $50,000, EDWARD wou ld receive: a) a secured Promissory Note in the amount of $50,000
4 memorializing the investment; b) a UCC Financing Statement and Security Agreement
5 collateralizing the Promissory Note; c) a one (I%) percent membership interest in Defendant
6 TROY ; d) an Amended Operating Agreement for TROY EQUIPMENT LEASING, LLC for
7 review and signature; and, e) stock ownership in a Canadian corporation known as Constellation
8 Mines, Ltd. COX represented to EDWARD that TROY had purchased and would continue to
9 purchase mining equipment; that TROY would lease the mining equipment to Constellation Mines;
10 that TROY would receive rental income from the lease of its mining equipment; and, that
1 I Constellation Mines was mining gold at various sites located in Canada, wherein gold mining
12 claims had been acquired.
13

41.

When Defendant COX made the above representations and continuing thereafter, he

14 failed and om itted to disclose that he was also a shareholder and/or Director of Constellation
15 Mines; that Troy Investment Partners, LLC was also a shareholder of Constellation Mines; that he
16 was a manager of Troy Investment Partners, LLC; that there existed an obvious conflict of interest
17 with his status as a managing member of TROY, his status as managing member of Troy
18 Investment Partners, LLC, his status as a shareholder and Director of Constellation Mines, his
19 status as a shareholder and Director of 536242 Yukon, Inc. , a Canadian corporation, and COX ' s
20 solicitation of funds from investors for investment in TROY. At all times relevant herein, Plaintiff
2 1 EDWARD was unaware of the conflict of interest between COX, acting as a shareholder and/or
22 Director of Constellation Mines; acting as a shareholder and/or Director of 536242 Yukon, Inc., a
23 Canadian corporation; and, COX, acting as the managing member of Troy Investment Partners,
24 LLC; and, COX, acting as the managing member of TROY. Plaintiff is informed and believes and
25 thereon alleges that the conflicts of interest include. but are not limited to, TROY's enforcement
26 and collection of financial obligations owed by Constellation Mines or others to TROY.

27

42.

Based on the representations of COX.EDWARD loaned $50,000 to TROY. In

28 return, EDWARD received from COX a secured Promissory Note dated October 2 1, 2013 , a UCC
10
COMPLA I NT FOR: (I) BREACH OF CONTRACT; (2) DECLARATORY REL I EF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREAC H OF FIDCUA I RY DUTY; (6) BREAC H OF GUARANTY AGREEMENT

 Financing Statement and a Security Agreement. Prior to the loan of $50,000, COX did not provide
2 EDWARD with the Private Placement Offering Memorandum, even though COX had solicited and
3 raised substantial funds from other investors in T ROY. In addition, COX has never provided
4 EDWARD with an Amended Operati ng Agreement for T ROY EQUIPMENT LEASI G, LLC or a
5 share certificate evidencing his stock ownership in Constellation Mines.
6

43.

Over the years, TROY and COX have made various interest payments to

7 EDWARD . The last interest payment received was in approximately June 20 15. After June 201 5.

8 COX fa lsely represented to EDWARD that he would continue to recei ve interest payments from
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9 TROY and that TROY would repay his loan in ful l. EDWARD bel ieved and trusted COX

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44.

Defe ndant COX made the above referenced representations to Pl aintiff EDWARD

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14 with the intent to induce Plaintiff EDWARD to loan Defendant TROY $50,000. Defendant COX
15 made the above referenced representations of repayment to Plainti ff EDWARD with the intent of
16 having Plaintiff EDWARD delay and forebear in the enforcement of the Promissory Note dated
17 October 2 1, 201 3, the UCC Financing Statement and Security Agreement.

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45.

As a proximate result of Defendant CO X's fraudulent conduct as alleged herein,

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19 Plainti ff EDWARD has been damaged in the amount of $50,000, together with all unpaid and
20 accrued interest, or according to proof, together with in terest at the legal rate.
21

46.

The aforementioned conduct of Defendant COX was done wi th oppression, fraud or

22 malice and was an intentional misrepresentation. deceit, or concealment of material facts known to
23 Defendant COX with the intention on his part of depriving Plaintiff EDWARD of property and was
24 despicable conduct that subj ected Plainti ff EDWARD to a cruel and unjust hardship in conscious
25 disregard of the rights of Plainti ff EDWARD. so as to j usti fy an award of exemplary or punitive
26 damages.
27 II
28 II
11
COMPLA I NT FOR: ( I ) BREAC H OF CONTRACT : (2} DEC LARATO RY RELI EF; COLL ATERAL; (3) COMMON
C O UNTS: (4) FRAU D; (5) BREA C H OF FIDCUA I RY DUT Y ; (6) BR EAC H OF GUA RANTY AG R EEMENT

 FIFTH CAUSE OF ACTION

2

BREACH OF CONTRACT

3

[against Defendants TROY, COX and MURPHY ]

4

47.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs I

5 through 46, inclusive, of this Complaint as if full y set forth herein.
6

48.

On Octo ber 24, 2013, P laintiffs ROBERT and V IRGIN IA loaned $50,000 to

7 Defendant TROY. Defendants COX and TROY provided P laintiffs ROBERT and VIRGINIA
8 with a secured Promissory Note dated October 24, 20 13, a UCC Financing Statement and Security
9 Agreement (Exhibit B).
49.

Plaintiffs ROB ERT and VIRGINIA have performed all of the conditions, covenants,

11 and promises required on their part to be performed in accordance with the terms and conditions of
12 the secured Promissory Note dated October 24, 2013.
13

50.

Defendants COX, TROY and MURPHY failed to perform all of the conditions,

14 covenants, and promises required on their part to be performed in accordance with the terms and
15 conditions of the Promissory Note dated October 24, 2013 by fa iling to repay the principal amount
16 of the $50,000 loan, together with al I accrued and unpaid interest.
As a result of the breach of the Promi ssory Note dated October 24. 20 13, Plaintiffs

17

18 ROBERT and VIRGINIA have suffered damages in the amount of $50,000, together with all
19 accrued and unpaid interest, or according to proof, plus interest at the legal rate.
20

SIXTH CAUSE OF ACTION

21

DEC LARATORY RELIEF - FORECLOSURE OF SECURITY INTEREST

22

!against Defendant TROY)

23

52.

Plaintiffs reallege herein by thi s reference each and every allegation in Paragraphs I

24 through 5 1. inclusive, of this Complaint as if fu lly set forth herein.
25

53.

An actual controversy has ari sen and now exists between Plaintiffs ROBERT and

26 VIRGINIA and Defendant TROY concerning their respective rights and duties in that Plaintiffs
27 contend that they are owed full payment of the secured Promissory Note dated October 24, 20 13;
28 that said secured Promissory Note has not been repaid; and, that as a result of the failure to repay
12
COMPLA I NT FOR: (I) BREAC H OF CONTRACT; (2) DEC LARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRA UD; (5) BREACH OF FIDCUA I RY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 said secured Promissory Note, Pl aintiffs ROB ERT and VIRGIN IA are entitled to foreclose on the
2 personal property described in the UCC Financing Statement and Security Agreement that acts as
3 security for the Promissory Note. Defendant TROY disputes these contentions and contends that
4 Plaintiffs ROBERT and VIRG IN IA are not entitled to foreclose on the personal property described
5 in the UCC Fi nancing Statement and Security Agreement that acts as security for the Promissory
6 Note.
7

54.

Plaintiffs ROBERT and VIRGINIA desire a judicial determinati on of their rights

8 and duti es and a declaration as to whether they are entit led to foreclose on the personal property
9 described in the UCC Financing Statement and Security Agreement that acts as security for the
IO secured Promissory Note.
11

55 .

A j udicial declaration is necessary and appropriate at thi s time under the

12 circumstances in order that Plaintiffs ROB ERT and VIRGINIA may ascertain their rights and
13 duties as to the foreclosure of the personal property described in the UCC Financing Statement and
14 Security Agreement that acts as security for the Promissory Note.
15

SEVENTH CAUSE OF ACTION

16

COMMON COU T - MONEY LENT

17

[against Defendants TROY, COX and MURPHY!

18

56.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs 1

19 through 55, inclusive, of this Complaint as if ful ly set forth herein.
20

57.

Within the last fo ur years. at Madera, California. Defendants T ROY. COX and

2 1 MURPHY became indebted to Plainti ffs ROB ERT and VIRGI IA in the pri ncipal sum of
22 $50,000. together with all unpaid and accrued interest, for money lent by Pl aintiffs ROBERT and
23 VIRG I IA to Defendants TROY, COX and MURPHY at their request.

24

58.

Plainti ffs ROBERT and VIRGINIA have repeatedly demanded payment from

25 Defendants TROY. COX and MU RPH Y. After making such demands, Defendan ts TROY, COX
26 and MURP HY confirmed their commitment to repay the monies owed.
27 II
28 II
13
COMPLAINT FOR: (I) BREAC H OF CO NTRACT; (2) DEC LARATORY RELIEF; C OLLATERAL; (3) COMMON
CO U TS; (4) FRA U D; (5) BREA C II OF FIDCUAIRY DUTY; (6) BREACH OF GUARA1 T Y AGREEMENT

 59.

No payment has been made by Defendants T ROY. COX and MURPHY to Plaintiffs

2 ROB ERT and VIRGINIA. There is now due and owing the sum of $50,000 together with all
3 unpaid and accrued interest. with interest at the legal rate.
4

EIGHT H CAUSE OF ACTION

5

FRAU D

6

!against Defendant COX]

7

60.

Plaintiffs reallege herei n by this reference each and every allegation in Paragraphs I

8 through 59, inclusive, of this Complaint as if ful ly set forth herein.
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In October 2013, Defendant COX solicited Plaintiffs ROBERT and VIRGINIA to

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12 Promissory Note in the amount of $50,000 memorializing the investment; b) a UCC Financing
13 Statement and Security Agreement collateralizing the Promissory

ote; c) a one (I%) membership

14 interest in Defendant TROY; d) an Amended Operati ng Agreement fo r T ROY EQUIPMENT

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16 known as Constellation Mines, Ltd. COX represented to ROBERT and VIRGI IA that TROY had
17 purchased and would continue to purchase mining equi pment: that TROY wou ld lease the mining

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18 equipment to Constellation Mines; that T ROY would receive rental income from the lease of its

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19 mining equipment; and , that Constellation Mines was mi ning gold at various sites located in

20 Canada. wherein gold mining claims had been acquired.
21

62.

When Defendant COX made the above representations and continuing thereafter, he

22 failed and omitted to disclose that he was also a shareholder and/or Director of Constellation
23 Mines; that Troy Investment Paitners, LLC was also a shareholder of Constell ation Mines; that he
24 was a manager of Troy Investment Partners, LLC; that there ex isted an obvious conflict of interest
25 with his status as a managing member of TROY. his status as managing member of Troy
26 Investment Partners, LLC, his status as a shareholder and Director of Constellation Mi nes, his
27 status as a shareholder and Director of 536242 Yukon, Inc., a Canadian corporation. and COX's
28 solicitation o f funds from investors for investment in TROY. At all times relevant herein,
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COMPLA I NT FOR: ( I ) BR EA C H OF CO TRACT ; (2) D EC LA RATORY RELIEF; C O L L ATERA L; (3) COMMON
COUNT S; (4) FRA U D; (5) BREA C II OF F IDCUAIRY DUTY; (6) BREAC H OF GUA RA 'T Y AG R EEMENT

 Plainti ffs ROBERT and VIRG INIA were unaware or the confl ict of interest between COX, acting
2 as a shareholder and/or Director or Constellation Mines; acting as a shareholder and/or Director of
3 536242 Yukon, Inc., a Canadian co rporation; and, COX, acting as the managing member of Troy
4 Investment Partners, LLC; and, COX, acting as the managi ng member of TROY. Plaintiffs are
5 informed and believe and thereon all ege that the confl icts of interest incl ude, but are not limited to.
6 TROY's enforcement and collection o f financial obligations owed by Constellati on Mines or others
7 to TROY.
8

63.

Based on the representations of COX, ROBERT and VIRG I IA loaned $50,000 to

9 TROY. In return, ROBERT and VIRGI IA received from COX a secured Promissory

ote dated

IO October 24, 20 I 3, a UCC Financing Statement and a Security Agreement. Prior to the loan of
11 $50,000. COX did not provide ROBERT and VIRGINIA with the Private Pl acement Offering
12 Memorandum, even though COX had solicited and raised substantial funds from other investors in
13 TROY. In addition, COX has never provided ROBERT and VIRGIN IA with an Amended
14 Operating Agreement fo r TROY EQUIPME T LEAS ING, LLC or a share certi ficate ev idencing
15 their stock ownership in Constellation Mines.
16

64.

Over the years, TROY and COX have made various interest pay ments to ROBERT

17 and VIRG INIA. The last interest payment received was in approximately June 2015 . After June
18 20 15. COX fa lsely represented to ROBERT and VIRG INIA that they would continue to receive
I 9 interest pay ments from TROY and that TROY would repay their loan in fu ll. ROBERT and
20 VIRGINIA believed and tnisted COX regard ing his representations that they wou ld continue to
2 1 receive interest payments and that TROY would repay their loan in fu ll. In reliance on COX's
22 representations, ROBERT and VIRGIN IA elected to fo rbear from enforcemen t of their Promi ssory
23 Note, UCC Financing Statement and Security Agreement.
24

65.

Defendant COX made the above referenced representations to Plai ntiffs ROBERT

25 and VIRG I IA with the intent to induce Plaintiffs RO BERT and VIRGIN IA to loan Defendant
26 TROY $50,000. Defendant COX made the above referenced representations or repayment to
27 Plaintiffs ROBERT and VIRGIN IA with the intent of having Plaintiffs ROBERT and VIRGIN IA
28
15
COMPLA I T FOR: ( I ) BREACH O F CONTRA CT ; (2) D ECLA RAT O RY RELI EF; COLLATE RA L; (3) COMMON
C O UNT S; (4) FRA UD; (5) BREAC H O F FIDCUAIR Y DUT Y; (6) BREACH OF GUARANTY AG REEM ENT

 delay and forebear in the enforcement of the Promissory Note dated October 24. 20 13, the UCC
2 Financing Statement and Security Agreement.

3

66.

As a proximate result of Defendant COX's fraudu lent conduct as alleged herein,

4 Plaintiffs ROBERT and VIRGIN IA have been damaged in the amount of $50,000. together with all
5 unpaid and accrued interest, or according to proof, together with interest at the legal rate. As a
6 proximate result of Defendant COX's fraudul ent conduct as alleged herein, Plaintiffs ROBERT
7 and VIRGIN IA have also sustained general damages, including, without limitation, severe
8 emotional distress and related personal inj uries.
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The aforementioned conduct of Defendant COX was done with oppression, fraud or

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13 and unjust hardship in conscious d isregard of the rights of Plaintiffs ROBERT and VIRGINIA, so
14 as to justify an award of exemplary or punitive damages_

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NINTH CAUSE OF ACTION

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16

BREACH OF CONTRACT

17

[against Defendants TROY, COX and MURPHY!

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Plaintiffs reallege herein by this reference each and every allegation in Paragraphs 1

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19 through 67, inclusive, of this Complaint as if fully set forth herein.
20

69.

On March 4, 2014, Plaintiffs ROBERT and VIRGIN IA loaned an additional

2 1 $50,000 to Defendant TROY. Defendants COX and TROY provided Plaintiffs ROBERT and
22 VIRG !N IA with a secured Promissory Note dated March 4, 20 14, a UCC Financing Statement and
23 Security Agreement (Exhibit C).
24

70.

Plaintiffs ROBERT and VIRG IN IA have performed all o f the conditions, covenants,

25 and promises required on their part to be performed in accordance w ith the terms and conditions of
26 the secured Promissory Note dated March 4, 20 14.
27

7 1.

Defe ndants COX and TROY failed to perform a ll of the conditions. covenants, and

28 promises required on their part to be performed in accordance w ith the term s and conditions of the
16
COMPLA I NT FOR: (I) BREAC H OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUAIRY D UTY; (6) BR EACH OF GUARANTY AGREEMENT

 Promissory Note dated March 4, 2014 by failing to repay the principal amount of the $50,000 loan,
2 together with all accrued and unpaid interest.
72.

3

As a result of the breach of the Promissory Note dated March 4, 2014, Plaintiffs

4 ROBERT and V[RGINIA have suffered damages in the amount of $50,000, together with a ll
5 accrued and unpaid interest, or according to proof. plus interest at the legal rate.

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6

TENTH CAUSE OF ACTION

7

DECLARATORY RELIEF - FORECLOSURE OF SECURITY INTEREST

8

!against Defendant TROYJ
73.

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10 through 72, inclusive, of thi s Complaint as if fully set forth herein.

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12 VIRGIN IA and Defendant TROY concerning their respective rights and duties in that Plaintiffs

13 contend that they are owed ful l payment o f the secured Promissory Note dated March 4, 20 14; that
14 said secured Promissory Note has not been repaid; and, that as a result of the fai lure to repay said

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15 secured Promissory Note, Plaintiffs ROBERT and VIRGINIA are entitled to foreclose o n the

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17 security for the Promi ssory Note. Defendant TROY disputes these contenti ons and contends that

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18 Plaintiffs ROBERT and VIRG INIA are not entitled to foreclose on the personal property described

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19 in the UCC Financing Statement and Security Agreement that acts as security for the Promissory
20 Note.
21

75.

Plaintiffs ROBERT and VIRGINIA desire a judicial determination of their rights

22 and duties and a declaration as to whether they are entitled to foreclose on the personal property
23 described in the UCC Financing Statement and Security Agreement that acts as security for the
24 secured Promissory Note.
25

76.

A judicial declaration is necessary and appropriate at this time under the

26 circumstances in order that Plaintiffs ROB ERT and VIRGINIA may ascertain their rights and
27 duties as to the foreclosure of the personal prope1ty described in the UCC Financing Statement and
28 Security Agreement that acts as security for the Promissory Note.
17

COMPLAINT FOR: (I) BREACH OF CONTRACT; (2) DEC LARATORY RELIEF; COLLATERAL; (3) COMMON
CO UNTS; (4) FRAUD; (5) BREACH OF FIDCUA IRY DUTY ; (6) BREACH OF GUARANTY AGREEMENT

 ELEVENTH CAUSE OF ACTION
COM MON COUNT - MONEY LENT

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[against Defendants TROY, COX and MURPHY!

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4

77.

Plainti ffs reallege herei n by thi s reference each and every allegation in Paragraphs I

5 through 76, inclusive. of th is Complaint as if fully set forth herein.

6

78.

Within the last fo ur years, at Madera, Cali fornia. Defendants TROY. COX and

7 MURPHY became indebted to Plaintiffs ROBERT and VIRGI IA in the principal sum of
8 $50,000, together with all unpaid and accrued interest, fo r money lent by Pl ainti ffs ROBERT and
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Plaintiffs ROB ERT and VIRGI IA have repeatedly demanded payment from

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80.

o payment has been made by Defendants TROY. COX and MURPHY to Plaintiffs

14 ROB ERT and VIRGIN IA. There is now due and owing the sum of $50,000 together with all

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15 unpaid and accrued interest, with interest at the legal rate.
16

TWELVETH CAUSE OF ACTION

17

FRAU D

18

!against Defendant COXI

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19

8 1.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs I

20 through 80, inclusive. of this Compl aint as if fully set forth herein.
21

82.

In March 20 14, Defendant COX so licited Plaintiffs ROB ERT and YIRGI IA to

22 invest additional money in Defendant TROY. Defendant COX represented to ROB ERT and
23 VIRGINIA that, in return fo r an investment of $50,000, ROB ERT and VIRGIN IA would receive:
24 a) a secured Promissory Note in the amount of $50,000 memorializing the investment b) a UCC
25 Financing Statement and Security Agreement collateralizing the Promissory

ote; c) an additional

26 one (I %) membership interest in Defendant TROY; d) an Amended Operating Agreement for
27 TROY EQU IPM ENT LEAS! G, LLC for review and signature; and. e) add itional stock
28 ownership in a Canadian corporation known as Constellation Mines, Ltd. COX represented to
18
COMPLA I T FOR: ( 1) BREAC H OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COU T S; (4) FRAU D: (5) BREACH OF F IDCUAIRY DUTY; (6) BREAC H OF' GUA RANTY AG REEMENT

 ROB ERT and VIRGI IA that TROY had purchased and would conti nue to purchase mining
2 equipment; that TROY would lease the mining equipment to Constellation Mines; that TROY
3 would receive rental income from the lease of its mining equipment; and, that Constellation Mines
4 was mining gold at various sites located in Canada. wherein gold mining clai ms had been acquired.
5

83.

When Defendant COX made the above representations and continuing thereafter, he

6 failed and omitted to disclose that he was also a shareholder and/or Director of Constellation
7 Mines; that Troy Investment Partners, LLC was also a shareholder of Constellat ion Mines; that he
8 was a manager of Troy Investment Partners. LLC ; that there existed an obvious conflict of interest

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15 536242 Yukon, Inc., a Canadian corporation; and, COX, acting as the managing member of Troy
16 Investment Partners, LLC; and, COX. acti ng as the managing member of TROY. Plaintiffs are
17 infom1ed and believe and thereon allege that the confl icts of interest incl ude. but are not limited to.

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18 TROY·s enforcement and collection of financial obligations owed by Constellation Mines or others

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19 to TROY.

20

84.

Based on the representations of COX, ROBERT and VIRGIN IA loaned an

2 1 additional $50,000 to TROY. In return. ROBERT and YIRGI IA received from COX a secured
22 Promissory Note dated March 4. 20 14. a UCC Financing Statement and a Security Agreement.
23 Prior to the loan of $50,000, COX did not provide ROBERT and VIRGINIA wi th the Private
24 Placement Offering Memorandum, even though COX had solicited and raised substantial funds
25 from other investors in TROY. In addition. COX has never provided ROBERT and VIRGI IA
26 with an Amended Operating Agreement for TROY EQU IPMENT LEAS ING. LLC or a share
27 certificate evidencing their stock ownership in Constellation Mines.
28 II
19
COMPLAINT FOR: ( I ) BREACH OF CONTRACT; (2) DEC LARATO RY RELI EF; COLLATERAL; (3) COMMON
CO
TS: (4) FRA UD; (5) BR EACH OF FI DCUAIRY D UTY ; (6) BREACH OF GUARANTY AG RE EM ENT

 85.

After providing Defendant TROY with the additional $50,000 loan, Defendant COX

2 did not issue or otherwise acknowledge ROBERT and VIRGIN IA's additional one ( 1%)
3 membership interest in TROY. ROBERT and VIRGINIA are infonned and believe and thereon
4 allege that other investors who invested $100,000 in Defendant TROY own a two (2%) percent
5 membership interest.

6

86.

Over the years, TROY and COX have made various interest payments to ROBERT

7 and VIRGINIA. The last interest payment received was in approximately June 20 15. After June
8 2015, COX falsely represented to ROBERT and VIRGINIA that they would continue to receive
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Defendant COX made the above referenced representations to Plaintiffs ROBERT

15 and V IRGINIA with the intent to induce Plaintiffs ROBERT and VIRGINIA to loan Defendant
16 TROY an additional $50,000. Defendant COX made the above referenced representations of
17 repayment to P laintiffs ROBERT and VIRGI IA with the intent of having Plaintiffs ROBERT and

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18 VIRGIN IA delay and forebear in the enforcement of the Promissory Note dated March 4. 2014, the

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20

88.

As a proximate result of Defendant COX's fraudulent conduct as alleged herein,

2 1 Plaintiffs ROBERT and VIRGINIA have been damaged in the amount of $50,000. together w ith all
22 unpaid and accrued interest. or according to proof, together with interest at the legal rate. As a
23 proximate result of Defendant CO X's fraudulent conduct as alleged herein, Plaintiffs ROBERT
24 and VIRGINIA have also sustained general damages, including, without limitation, severe
25 emotional distress and related personal injuries .
26

89.

The aforementioned conduct of Defendant COX was done with oppression, fraud or

27 malice and with an intentional misrepresentation. deceit, or concealment of material facts known to
28 Defendant COX with the intention on his part of depriving Plaintiffs ROBERT and VIRGINIA of
20
COMPLAI T FOR: (I) BREACH OF CONTRACT; (2) DEC LARATORY RELIEF; COLLATERAL: (3) COMMON
COUNTS; (4) FRAUD; (5) BREACI-I OF FIDCUA IRY DUTY; (6) BREACI-I OF GUARANTY AGREEMENT

 property and was despicable cond uct that subjected Plaintiffs ROBERT and VIRGINIA to a cruel
2 and unjust hardship in conscious disregard of the rights of Plaintiffs ROBERT and VIRGINIA, so
3 as to justify an award of exemplary or punitive damages.
4

THIRTEENTH CAUSE OF ACTION

5

BREACH OF FIDUCIARY DUTY

6

!against Defendant COXJ

7

90.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs I

8 through 89, inclusive, of thi s Complaint as if ful ly set forth herein.

9

91.

At all times mentioned herein, Defendant COX was a managing member of

10 Defendant TROY. As a managing member of TROY, Defendants COX owed a fiduc iary duty to
11 Plaintiffs. As a fiduciary. Defendants COX owed Plaintiffs a duty to act in the highest good faith
12 and to not obtain any advantage over them.
13

92.

Defendant COX breached his fiduciary duty to Plaintiffs by, inter a/ia, engaging in

14 the following actions:
15

(A)

Soliciting monies from Plaintiffs without providing Plaintiffs with a Private

16 Placement Offering Memorandum for their review;
17

(B)

Promising to provide to each Plaintiff an Amended Operating Agreement for TROY

18 EQU IPMENT LEASING, LLC for their review and signature, but fai led to provide an Amended
19 Operati ng Agreement to Plainti ffs to rev iew and sign;

20

(C)

Falsely representing that for each investment of $50,000, Plaintiffs ROBERT and

2 1 VIRGINIA would receive a one ( I) percent membership interest in TROY EQU IPMENT
22 LEASING, LLC;
23

(D)

Falsely representing that for each investment of $50,000 in TROY EQUIPMENT

24 LEASING, LLC, Plaintiffs would acquire stock ownership in Constel lation Mining, but failed to
25 provide the stock certificates in reference to said stock ownership;
26

(E)

Falsely promising Plaintiffs that they would continue to receive interest payments

27 on their Promissory Notes in order to induce Plaintiffs to forbear from enforcement of their
28 Promissory Notes, UCC Financ ing Statements and Securi ty Agreements;
21
COM PLAINT FOR: ( I ) BREAC H OF CO NTRA CT; (2) D ECLA RATOR Y RELIEF; COLLATERAL; (3) COMMON
CO UNTS; (4) FRAUD; (S) BREAC H OF FIDCUAIRY DUTY; (6) BREAC H OF GUARANTY AGREEMENT

 (F)

Falsely promising to Plaintiffs that their Promissory Notes would be repaid in full in

2 order to induce Plaintiffs to forbear from enforcement of their Promissory Notes, UCC Fi nancing
3 Statements and Security Agreements;
4

(G)

Failing to disclose that he was also a shareholder and/ or Director of Constellation

(H)

Failing to disclose that he was a lso a managing member of Troy Investment

5 Mines;

6

7 Partners, LLC; and, that Troy Investment Partners. LLC was a shareholder of Constellation Mines;

(I)

8

Failing to disclose that there existed an obvious conflict of interest with his status as

9 a managing member of TROY, his status as managing member of Troy Investment Partners, LLC
10 and his status as a shareholder and Director of Constellation Mines; and, that an obvious conflict of
11

interest existed regarding hi s solicitation of funds from Plaintiffs for investment in TROY;

12

(J)

Failing to enforce and collect all of the financial obligati ons and debt owed by

13 Constellation Mines to TROY, including payment of rent in reference to the leasing of mining
14 equipment, thereby preferentially treating Constellation Mines to the detriment of TROY and its
15 members; and,

16

(K)

Failing to accurate ly and fully disclose the relationship between Constellation

17 Mines. Troy Investment Partners, LLC and TROY.

18

93 .

As a prox imate result of the breaches of fiduciary duties by Defendant COX,

19 Plaintiffs have been damaged in an amo unt unknown and unascertained at this time. Plaintiffs will
20 seek leave of court to amend this Compla int when said damages are known and ascerta ined or upon
2 1 proof thereof at the time of trial.
22

94.

The aforementioned conduct of Defendant COX was done with oppression, fraud o r

23 malice and was an intentional misrepresentation, deceit, or concealment of material facts known to
24 Defendant with the intention on hi s part of depriving Plaintiffs of property and was despicable
25 conduct that subj ected Plaintiffs to a cruel and unjust hardship in consc ious disregard of the rights
26 of P laintiffs, so as to justify an award of exemplary or punitive damages.
27 II

28 II
22
COMPLAI NT FOR: ( I ) BREACH OF CONTRACT ; (2) DECLARATORY RELI EF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUA IRY DUTY; (6) BREACH OF GUA RANTY AG REEMENT

 FOURTEENTH CAUSE OF ACTION
2

BREACH OF GUARANTY AGREEMENT

3

[against Defendant COX]

4

95.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs 1

5 through 94, inclusive, of th is Complaint as if fully set forth herein.
6

96.

On or about September I, 20 19. COX signed a Guaranty Agreement wherein COX

7 personally guaranteed repayment of the Promissory Notes dated October 21, 2013, October 24,
8 20 I 3 and March 4, 20 I 4, together with all attorneys' fees and expenses incurred by Plaintiffs in the
9 collection of each of said Promissory Notes.
10

97.

COX failed to repay the Promissory Notes dated October 21 , 2013, October 24,

11 2013 and March 4, 2014, together with all attorneys' fees and expenses incurred by Plaintiffs in the
12 collection of each of said Promissory Notes.
13

FIFTEENTH CAUSE OF ACTION

14

BREACH OF GUARANTY AGREEMENT

15

[against Defendant MURPHY)

16

98.

Plaintiffs reallege herein by this reference each and every allegation in Paragraphs 1

17 through 97, inclusive, of this Complaint as if fully set forth herein.
18

99.

On or about September I, 2019, MURPHY signed a Guaranty Agreement wherein

19 MURPHY personally guaranteed repayment of the Promissory Notes dated October 2 1, 2013,
20 October 24, 20 l 3 and March 4, 20 14, together with all attorneys' fees and expenses incurred by
21 Plaintiffs in the collection of each of said Promissory Notes.
22

I 00.

MURPHY failed to repay the Promissory Notes dated October 21.2013,

23 October 24. 2013 and March 4, 2014, together with al l attorneys' fees and expenses incurred by
24 Plaintiffs in the collection of each of said Promissory Notes.
25

WHEREFORE, Plaintiffs pray for judgment against Defendants, and each of them, as

26 follows:
27 II

28 II
23
COM PLAI T FOR: (I) BREACH OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COU TS; (4) FRAUD; (S) BREACH OF FIDC UAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 FIRST, FIFTH AND NINTH CAUSES OF ACTION

2

I.

For damages in the principal amount of $ 150.000. together with all unpaid and

3 accrued interest, acco rding to proof;
4

2.

For reasonable attorneys' fees:

5

3.

For cost of suit incurred herein; and

6

4.

For such further and other relief as the Cou11 may deem just and proper.

7

8

SECOND, SIXTH AND TENTH CAUSES OF ACTION
I.

For a declaration that Plaintiffs are entitled to forec lose on the personal property

9 security represented by the Promissory Notes, UCC Financing Statements and Security
IO Agreements;
II
12

2.

,.,
.)

.

For damages according to proof;
For reasonable attorneys' fees ;

13

4.

For cost of suit incurred herein; and

14

5.

For such further and other relief as the Court may deem just and proper.

15
16

THIRD, SEVENTH AND ELEVENTH CAUSE OF ACTION
I.

For the princ ipal amount of $ 150,000, together with all unpaid and accrued interest,

17 according to proof;

18
19

2.
,,
.)

.

For reasonable attorneys' fees;
For cost of suit incurred herein; and

20

4.

21

FOURTH, EIGHTH, TWELVTH AND THIRTEENTH CAUSES OF ACTION

22

1.

For general damages according to proof;

23

2.

For special damages according to proof:

24

3.

For punitive or exemplary damages according to proof:

25

4.

For reasonable attorneys' fees;

26

5.

For cost of suit incurred herein; and

27

6.

For such further rel ief as the Court may deem proper.

For such further relief as the Court may deem proper.

28 //
24
COMPLA I NT FOR: ( I ) BREA CH OF CONTRACT ; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMO N
COUNTS; (4) FRAUD; (5) BREAC H OF FIDCUA IRY DUTY; (6) BR EACH OF GUARA NTY AGR EEMENT

 FOURTEENTH AND FIFTEENTH CAUSES OF ACTION
2

I.

For damages in the principal amount of $150,000, together with all unpaid and

3 accrued interest, according to proof;
4

2.

For reasonable attorneys' fees;

5

3.

For cost of suit incurred herein; and

6

4.

For such further and other relief as the Court may deem just and proper.

7
8 Dated: December 16, 2019
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KNOX, LEMMON & ANAPOLSKY, LLP

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COMPLAINT FOR: (I) BREAC H OF CONTRACT; (2) DECLARATORY RELIEF; COLLATERAL; (3) COMMON
COUNTS; (4) FRAUD; (5) BREACH OF FIDCUAIRY DUTY; (6) BREACH OF GUARANTY AGREEMENT

 EXHIBIT A

 NGTE
meow 
'eto?bnr 31,3013.

My

- ....
,

PROMISS'0RYNOTE
(T-enn Loan)
Madera, Calif11.aiia

$50,000.00

.- ·..

Oct21,2013
.
.

..

-

.

..

.

l

•

..

. . FO}l. VA,t'[J;E l,lECEIVED; the,undersigri!ld T:01. EqliipmentLeasin,g;' a; CalifotDia:liDiited
liability company (''Borrow~(~, promise(~) ro pay· to the o.td~ of Ed'warc! Ta11g, ("Lendi:r',;
16tated, at 2452 Trento!! Ave, Ootiis CA 936!1.9 ot at sµ~. Q~~ place ~ Dll!Y"be. designllllld fn.
-wrliing byuoder,,lhi:.prjncipil S\1111-ofFi~ty Thousand Dollars .($50,000;00) or,so-miJch.thereof as.
_may b.e disbursed by I.endeno or 'for the ·benefit·ot account o'f,Bouower, :with interesttbei:eon at ·
•j:he per !!llllllffl rate eqµ11lto ti:'elve percent'tf2o/o) '(based 911 ii 360-dayy.ear;-and c\l~,l!ed•ontbe basis· • • •
Qf ! ! ~ days eh\pse~ in.iµfecr'fromtime to time., .All swns.Qwing her~ a;e p;iy'ablc in lawful
•.
~ney of the: United Sm.tea· of Arneri~, in immediately )IVlillal'ile 'funds.
·
.
The Ou!!!tm!lilig,piincipalbal:mce of.thisNon:, together with all.a~ed and-.unpaid interest,
date msc sec fort,h obbve (the

·,

~ be-,due and par,ible in ·fu)l on t!ie .second :annivmai:y .of the
• ~ t y Daie',,
•.

,.

,. . . •Battower mail pay setni-aniluol· inre~st paymenb; to. Leuder•in the ·amount of ~;odo.oo.
'\ybjch.amount shall.'be pro~-on a per diem basis for.any partial month, commenclng:o~ the.mst
day of ~ch calendar month.and.continaing111Bllthly thereafter until the Ml\tl1rlty Date; at:whi~
time .all unpaid interest plus all pi:incipal owing hereundcrjliall be due and payable. ..Any monthly •
· ·p~y~ts .i:equired liereundlll: ~all be dµe•,and p~yable i!ii i:he fustday a.£ each montn.and shall be .
·applied
9ui;stindiiig ~ bafa~ce:ohbis Note.-. This 'Note may ·be pre-Raid \It any time. .
· Any-pdnclpafbalance,reductfons may·11.otbl: ie-boirQWe<i.
,
·

~:~e
I

•

•

.~

This

t

•

••

•

I

,,

I

Nine·is sec:utejl by, amon~_other thjngs,·tliat certain Secmity .l\gr~en~ C'S~i:y
Agreem~!) dated as.qfeven date bifrewith, executed ~f°Bottowci: for tbe:benepc·ofL!'nder.,
·

If Bom,wer. f;tilll'to pay·any payment due h~~er, or -the final pa.yment due _lu:rewJile,t, ·

withm .thirty. (30) .days after its due date~ or upoi;i tire occpii:epce i:if,iµil!• oi:qer Default under this

Note or:the Secum:y, .i,\.greement; then Lendt!r, at its optipn, may inc;ease th~·inter~t.Cl!tt;,payable
, herll\Jilder to five (5) perceiilll~ poiilts per. l!llllum (th<; ''D~iµthnerest ~te''), such incieai,ed
.,rue~ applymrtil such ~quentpayment(s),haveb~ P.dd orsw:b bi:bet-Demul~•iuis been-cured,
·Ii:' ap(lliceble. Accq,tan~·of such·~~lllldin~~atthe Default Immest Rat;e shall t1otlimit
the right ofLend~ t!) cdmp'elperformance,of.any obligatiop.or.~eany other,r,emedies unde,t
theterrns·ofthis Note-or the Security A!l%eeinent. ·:Addim:\nally,.lipon·t\it> nrcun:eor.e of a Default or
event thii~:with the gfyii:ig of µotig: or lap!ie of time, or both, .woQld ,roostilllte a De6rult, and so
• · lopg ,as suih Default ·or ,event that; with the gi;ving of .notice or lapse. ·of time, or bot!\, woultl
constitute a Defadlt, :temains,_unciJied, Lender shlillbe entitled 'to:!111spe1111 the ~ . 11dvanccs
under this N~re and shsll hiive no obligation to..make any further
. advances under ,ti$ Note.

.

of

•.

 ....

..

,
.__.·;'

,

·-~.,- .

)

If: (a) Borrower shall mil to•pay when due any sums pl\yable berClllldei:; or (b) a Default{as
on
defined in :the S"ecurlty Agr~ t) occurs qnd!ll the.Secwity Agreement or under any obligati
on
.seeuted ~ y ; or (c) the prpPetty which .is subjeet r.o the Se~ty Agreement, or ~·pom
r
whethe
leasea;
or
ered
encumb
iheteof odnterest therein, is sold, ttlinsfem:d, 1J1ormaged, assigned,
by·
d
pemdtte
y
voluotarily or involuntarily or by opemtiop _ciflaw qr otherwise, other than as expressJ
Note
Lender in writing; THEN Lender may, at·its sole option, decllli:e.all sums-owing under this
s
provide
Note
this
to
d
n~relate
docwne
a11y
if
immediately due and payable; provided, ho.wevcr, that
be
shall
er
hereund
owing
sums
all
fonuto madc arcelerarion of paym~ of sums owing hereund~
automatically due 'and payable jn ilccorgancewith·the terms of.that document

if any attorney is·cpgaged by Lender.tocnforce.or·defend,!llly provision of.this Note or the

legal
Sec;urlty Agreement, or as a consequence .df 1111y Default, with or ,vithout the.filing of an.y·
s'
actio!I or proceeding, then.Bomiwer shaU'pay r.o •Lender immediately-upon 'demand all attorney
tlon
Cl'iruiec
in
~
n
i
any
fees and all costs incw:red by Lended n con!}Cctlon therewith;1including,
from.
with any bankruptcy p.roceed,ings or. any appellate proceedings, togetb,erwith in~t,ti iereon
b\ilm=.owing
the dare of·sudt deDJ•od uniil'paid.at the rate of'.iqterest applicable.to the prlnc:ipal
l,
prlncipa
the
,to
:idc!ed
. hereunder as.if such unpaid attameys' fi:es and costs had been
No _previous waiver and no.&ilure o; delay by Len~er in actingwkb. tespect to tlie 'terms-of
of
this Note or the Security Agreement sbi111 eoilstitnte a waiver of any !>reach; d~milt, or &ilure
condition under this Not~ i:he Sec:w:ity Agieement or the obligadeO!is seclired thereby, A waiver of
be
any term oftbis Note, theSecw:ify Agi:e ~t or of ~y of the··obligationssecured·.thereby Di~
any
of
eyent
the
In
Jl.lllci!l in wi'iti.ng and. shall be limited. to the,c;xpress w.riuen temlS of such waiver,
inconsisteodes between the tcmis of this Note 1111d the tetms ofilny other doc:lipieot related to the
loan.evidenced by this Note, .tbe·tetzn.s of this· Note shall ~ail.
.
T~ is. o'f·.the essence
. with mpecr to everi;. provisio. l). hereof.

This Note shall be ilei:medto be l;XC~ted aµd deliv~ iil theState ofCalifomia. Bon:ower.
laws,oftheState of
·© agrees thar.thisNote shall_be c:1Jnstt1ied ac:~lllli!g to md govemed byandthe(w}c:on
sea,ts 1:0veone
"CalifoI!liil, (n}consents,ID pe?Sc;,11aljmisdiciio11 in theSmte of Califomia,
in Fresno Coµnty; Califotjua, forall actions and pmceedin~ w.lthrespect to t;his•Noie,,and waives
to the
any right itmay haye ,to•assert the docftine of forum non conveniens or to object to vemie,
·
extent-any procecding is brought in ac:cord,ance with this paragraph,
All notices Cir other communi\,lliiQns cequtted orpemiittedtobe·given pursuantto this Note
n.
shall be given to the B9uoweroc Leoderattheaddt:essmdin.themnonerprovided forin tlieLoa
·
Agreement

This Note and the Se~ :Agi:eement conlllin or expressly incotporare by reference the
de all
entire agreement·of the·patdes 'With respect to the.matters coil~p lated mi:=n:and supen;e
be
not
l
ent.slnil
pi;ioc negotiations cc.agreements, written or oral. The;No~ and Secw:i!Y Agceem
the
or
modified except by written ~txum eot eJt\!Cµted by all pm:ties, Anyi:eference ~ the_No~and/
d by
Security Agreement includes.any, am~dments,.reoewals or.extensions now or h~fce r approve

·

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Yo!lllhama.
Goodyear

TeRIX'

'TjmG#

Serial Numbar(sJ

DCMOl0111

~07•2

125 KW Genemtar

DCMDI035 1BJODl!DDD10765
D~.011136 16CPOOB36D
DCM0111Z6 nla
DCMDJ01!2 186
DCMD1025 71B68
DCMIJ1DD3 68141
.DCM1111lD4 65134
DCMll104D ·nla
DCl4011141 15245582
.DCMOIDD7 nla
DCMll1042 nla
DCMD1043 nle
JlCMB1DiB 670

2007,Mulllqu!p 381\W Gonara!Or·
Sl\260 DleselWelder

·IJCM01D16
.DCMD1005

2DDURB EM16.!J Pllllljl

'DCMOtD'lB

AL411DOµgh1Tawer

DCMll1039
DCMD1037 \W41!7D
DCMD1DIIS ., nla
DCMOI044 400&7
.1JCM01045 Pc:92072584
DCMB104B tiXZBB3002
.Dt:r,101047 Ille·
DCMD1048 n/a'
DCM01049 nla
DCM01050 Illa
DCMD1061 Illa
DCM011152 Illa
• DCMDID63 RS304
I'll!
nla
nla
Ria
Ii/a
nlli

C,500h6saml

'.325i\lrCvmpressor
2007-24' 6th Whl El;ulp Traller
CBCiav,1erTl!ldllr
11800 Crawlei'Tmmt
41i'VanTraUer •
4D'TootTrallei
41rToolToi!!er
10' X40' Comp Tilliler
210 Barrel fll!llTenk
100 a;rre1 f gel Tank
liDDD_gallon FuelTenk
1994 4x12'x5r<:amp
21 X36'
12x241inl&
Rocklrilcllliias

.

7203971
nla
15!041
IIVmllBO

....

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l

 '•

.

SECURITY A G ~
THIS SECURITY AGREEMENT (lhis·''Agrei:men(') ii; made as pf this 21" day of.
October, 2013~ by and b~e~ Troy ;13qcipmentleasingLLC, a-Culifomia limited liability company .
f'Debtor' ~, and }3dwaril i"_;ing, loiated.at 2452 Trenton Ave, Clovis, CA 93619 ("Lender'').

J
J

..J

RECITALS
WHEREAS, pmsuant to thnt~ pmmissru:y note of even ~te herewith by and .
between Debtonm d Lender·C'Promissoty'Note"), Lender is making a loan·. to Debtor iD the
original face principal amount ofEiftyThousan\l Dollars (S50,9QO;QD)•

A.

This Agrecment:and the·J>iQmissmy-Note, as tliiiy inaY. be· modified, mncnded or
. B.
supplemented &olh mm: to· time, will heremafter be referi:ed 'to..collectively a,s the "Loan
Documents'.', Capitalized terms-notoi:l'tetwise.defini!dhereinsh,alleachhavethemcaningsetfurth
,
· _
in the Pl:omissoi:y No~
WHEREAS, ,Debtor is ~esirous of secwing ,to, Lender tµe repayment of the
·. . C
indebtedness, eviaenced _by the Note and the performance, of the :other teans, covenants and
i
'
a~~cs contain ed~ and in th~ Ldan Documents,
..•!.

AGRE E~
• NOW THEREFORE, for g_ood and vitluable CO!!sideration, the receipt B!)d sufficiency. of
which iu:e hereby acknowledged byl.ender and Deb~, such patties hcreby·a,gree as follows~

@ant of'Si;curity Interest. i:>e~tor hereoy gi:ap.ts to Lender,a.sean:ity interest in all

personal ptoperty" of Debtor, w!Jei:ber nqw owned .or hereafter :icqmred, wh~ever located,
including, witho_ilt limitation, all right, title and inierest of Debtor.iii, to and uuder the. following
iocatell,.6n or ~ g to the property mip. operations thereon iocated generally, but not limited-tQ,
the ap:a of,McDame (;reek, British Columbia· (collectively, the "Coll\lteral''):

All (i) equipment, including, withoutlimitation,-lixtw:es, (u)_inventoty, and.(ili)
·(a)
.other go~ds, of any natute whatsoever;
(b) _ All accounts; all chattel paper; allco1,t11I1ercial tort claims and other claims or
..
causes of actilin;. all deposit accounts; all documents; all gencml inmngibles, -including, withe-gt
limitation, all trade SCCl!lts, all trademarks, s!lEl'icemm:ksand trade names and·assodated goodwill, all
patents, all copyrlghtl!,,and all oµierintellectual property, all software, and.all piiymentintangiblcs; all
t propeity; all letter'of credit-rights;, a!Llettets of credit; all mop.ey; and
all investmen
inst,;wnen;s;
.
.
~

(c)

To the extent not otherwise described above:
(i)

All insumnce ,policies anr;I water stock.

All atehitectural, BtflJc!llral, me~anidil and engineering plans and
{u)
specifications prepared for construction of improvements or extmction of minerals
from any real propett)' now or hereafter own~ or leased by Debtor and all studies,

,

 •
dat1 .and clmwings xelated thereto; ·and. also all contmas and' a ~ t s . of the
Debtorrelalingtothi:foregoingplalisandspecll!cationsor.tothe,foregoiiig51lldies,
data and;,c!µ,wiogs ot to the· constIUction oF ·lll!Provements· on· or extfaction ·of
mineJ:als· at gravel from any real property now or hereafter owned_ oi: leased .by
.
Debto~

(m). All.refunds, rebatesl,ieimbmsemenrs: reserves~ derened payments,
depQsits, cost savings, govemmenta1 subsidy· payments, ,goveJ;nmci\tally<ti:gistered
credits (such as, by way of example and 11pt as limitation, emissions reduction
aedits), other credits; waiv.er.i and:paymenrs, ~v~ther in cash.or kind, due from or

payable by any govemmenllli l\llthozityor any in$11Il111ce cir utility company relating to
any or 11ll of t½i_e.pei:sonal propertror real property now or hereafter owned o_r leased
by Pebtor or to any improvements thereoo: or any:of the other collaf;iltal desar'be.d
hetein or· arising. out of the satisfaction of .an.r .condition imposed' upon or. the
· pbtaining of any approvals for the development cifthe any real property now or
hereafter. owned by De!iror or the impmvemelllll thereon;,

,,

'(iv) All refunds, ,.reb,ates; xeimbursements, crerlits iuld' payments of any
kind due from or payable by any governmental authority m other entity for 3IJY
taxeS; speciiil tl!Xes, assessments,· or .similar govemmental or quasi-govemmental
ch~·or levies iinposed,~on Debtor with respect to the any personal property or,·
Ical property.now ot hereafter QWDed or lease,l'by Pebtor end ~th-respect to.any
imP,tc!Veni~~ thereQn or to any of the other collateral desaibed. hetcip, or ~g
oil!: of the satisfaction, of any coodition imposed ,upon or the· iibtainiag of any.
app.rovals for the development ,of apy real property now "or:l1ereafre~. owned or·
·
leased by Debtor or·the·inlprovements th~qn;

(v) ,. All snppottlng obligations with resp.ec~ to any .othet cpllateral; and
(vi) All repincements, products and p1oceeds of, .an~ additions and
accessions to, any Qf the,forem>ii)g; together with all books, recon:ls and files relating .
··
1D any of the foregoir;ig.

All' ,temis used '.herein which are defined ln the Cl!lifpmia Upifcim
(d)
·(lotnlI),el:Ci;d Code shall have the same meanings when used. herein, unlesJI the con~ requires
·
othet\Vise.

Obligations Secured. The obliga~ns secqi:ed hereby ~ the paymc;nt and
peiiformance or. ''(a) sll present and niture lndebtedness, ofDebtor 1D Leµder, including, without
.

2.

limitation, .all Inaebi:edoesi; .owing, doe and/or. ·required: under the Promissmy Note and this
Agi:eement and (b) all.present·and futme,obligations ofDebcot to Lender.of every·other. type, kind
ot.c;bl!P,cter. Thevi01d ''Indebtedness" is used herein in its most COtDprehensive sense andinclndes
aliynnd.all a~vances, debts, liabilities lipd:monetlll:y and non,monelllry obligations of evei:ytype 9;0d
kind of Debtor, oi:'any-of them, heretQfore,.now or hereafter made, incum:il or c;reated, whether
.voiuntm:y',or involuntaty and howevei: arising, whether dlie at not dui:, imsol,;ite w: contingent,
li.quidated or unliquidated, determined or undetl:IPlined, aqd whether Debtor may be liable
2

 individually or joindy,,or. :wbether recovery µpan such lndebr:eilness may be m: hc:reaftet become
·
·
uoenforc:c:able.

Termination. This Agreementwill·t"'!"ine•e upon. tbeperfoimllllCC·of all obligatio11s
3.
o£D.ebtQI ta Lender, ioi;luc!iogwitlioutliniitatioo, tbe-paymeot•cifall Indebtedness ofDebtor .to
L~~er existing or committed by Leud!lI'at BD)' time.

'
.
hereunder
loans
make-any
Obijgatigns of Lender. Lender bas no obligation to
4.
·se=ed
While Debtor is not in default, Lender will, except ta ·the ~oulit of.cootingen~ liabllipes
bere)?y, either telease•orapply to any debt secured bereby,.at Lender's option,:all securltylntbe fmm
of CIISh or .iaevo~ble bank credir. .Any sums:withbeid to SflCl!re contingent liabilities may be
deposited arLendet"~ op!ioJI in ·a non-interest beaxing account:over \Vlili:h Debtorshall iiave no·
control, and the same slµill, .for all pw:poses; be deemed a pomon t1f the Account hereunqer.
&presenmtions and Wari:anties. Debtor xepresents aod·wmants ta ~er that
5.
(a),Deb~r is the O\~.and bas possession' of-the Cellatl!tal; (b) Debtor has the :tight tO eicecnie and,
deliver this .Agreement, to.gr.int a se~·i n~ in the Account, and to othe!\}'ise. p.erfonn in
accorilaoc:e with this Agteement; (c) neith~ the execution .and delivery nor perf~aq ce oftbis
Agreement by Boc:Q\Ver .shall violate; breach 'or othet_Wise_ co111mvene arty agreement, document,
ins~t,:Ja ws,or;re gulation that Boi:Iowet is•aparty to or subject ta; (d) Borrower has not sold,
conveyed, assigRe~:pl~ged;-hypotiiecared;orotherwise ~sfe~ed· any of'its right, title orintereSt
in the •CoUat=.I to any per11011 or entity other il)art Lend.er; (e) the Collateral·is genuine, :free &om
liens 3!1d other encilmpranc:es, advetse claims; setof&,default,prepayment, defenses and CO!lditions•
precedent ofmy kind or clu!rai:ter; '(£) all.statements co11tained herein and, ~applic able, in any
dQcwnenlil Ielated .to the Account are •trlle and complerc; aoil (g) no •dng statement covering
the Collatml, and naming any secured:patty other than, Lender,,is.011 6le.'in any public office.
6.

'CoyenBQts ofDebldr.

Debtor.agrees in general: ©to pay imd perfo1:m the In~btedness seemed
(a)
· herebywhen due; (Ii) to indemnify Lender ~gainstall losses;~ ~. demao~_)iabilities and expenses
of,evei:y kind,cansed by :pr:qperty subject heteto; (iit) to pay .all costs and. expe11ses, illcblding
reasonable attorneys' fees, in~. py Lellder in. the pemction, preservatio11, ~ o n , .
eoforcemen~ a11d. exercise of its iight;s, ,powers an!3.-remeclies hei:eunder; (iv) to petmit Lender to.
e."lercise its powers; and_ (v) to execute.and deliv~ such documents es Lender deems necessar:y to
creare, perfect a11d continue the security int:e=ts. contemplated herel;,y.
.

Debtor agrees. \,nth regatd to tlie CoJlateral: ©11ot to sell, convey, assign,
(b)
ple!ige, hypo'tbecate, or oiherwise tt\i!IS~ my right or interest in, or pecmit any .lien on the
Collateral or any portion. .thei:eof, except in.favor ofLender, (ii} to keep, in aCCDrdaocewith generall)•
aca:pred accounting. ptinciples, complete and accurate records i:egarding the Collateral, a11d ta
pennit Lender to inspect the· same a11d.,make oopies ~of at.any reasonable time; (iii) not to
co~gl e the proceeds of the Ccillateral, or .collections tliereuoder, with other property or assets;
and (iv) •to provide any service and ·do any. other acts which may be necessary to keep .the Collaa:ial
f~ and clear of all de£ens~ lie11s, rights ofoffset and ~tetcloi ms-

Tm!& Scam)y A-~doc

3

 .

,l

Powers:nfLender.- .Debtor appoints Len!1edts tcue anomey in fiic:t to perl'or:m any
. . 7.
of th!: follmving po,~, which are coupled with an interest, are in:eyocable until rermiruttion of this
Ap:~t and may be·exeiclsedJrom time.to tim~ by Lendet's.offia:rs and e111ployees, or any of
them;· whether or not Delltor is in defa,ult: (a) to perfomi 11t1y obligation of Debtor hereunder in
Debtor'~ name or otherwise; (b) ro give notice of Lender's rlghts in thi;.-Collatetal;. tb enforce the
· same and make extension agteements with tespect tberea;,; (c) to relea~e ,secw;icy; (d) to resott to·
security 'in any order; (e) 'to prepai:e, executel file, record or ~eliver ·notes,. seclJ!lty a.gteements,
·schedules, ,d~gnation. statements, .financing i:tatements, continuation statements, termioarion
-sp.tements, Sll!lemeots c>f•security agreement, applications.for .registration or like pap~ to pl:1fect,
preserve or release Lendef.s..inrerestin tlie Cqllati:tal; (f) to take C!!Sh, insttwnents foe the payment
ofmoney-and other p~petty to which Lenderis enti~d; (g) tQ prep~ adjust, execute, deliver and
.receive pay,,:µentuoder insumnc;e c;l;u!ns1and to collect and receive payment of and endor$e !llly
:insltµlllentin:pl!ymcntoflosliorrellimedpcimumsornnyotherinsurancerefund,orrctw:n,andto
apply such amounts received by Lende;, at Lender's sole· op~ort, toward ~pnY.=.nt of the
Icdebtedn~s or Ieplacement oftheAccoliQt; (h)· to exetc:ise all i:igl!,ts,.pow~ and re~edies which
Debtor would Jiave, but·for tbis-Agreement,with respectto•the Collateral,subject hereto; al)d ©to
ao all a1;ts and. things and execute all do~ents in the name of Debtor or othr.:rwise,.decmed by.
Leiidei: as :ne~, proper and convenient in connection with the preservation, perfec:fion or
·
enfo~t, ofits rights hei:eunder.

PJ!yrnent of Premiums; Taxes, ch~. Liens and· Assessments. Debtor 3ITTCe5 to
pay, prloi: to dclinqnencr, ·aniQsuranc:e p~nms; taxes, cha:rf!CS, liens and assessmeµts pst the
8;

Collateml, and upon the failµte ofDebtor to do-,so, Lender at its option may par any of them a;iil
shall be the stile judge of the legality or validity thei:.eof and the amount necessary to disch~e th.e
sam~ Any such payments ·II!llde by Lender .shalJ. be obligations of. Del,$. to Lend!lt, duci and
payable immediately upon demand, together with interest at iuatc .determined in acco~ with
the.provisions of Seqtion 12 herein, and shall be sec:ui:ed by the Collateral, subject to all tmns and.
·
CQnditions of this Ag;eement
'
.
Events.ofDemult. The occ~p:nc:e ofany of the followi!lgshall c:onsiitute an "Event
9.
ofDefault''under this.Agi;eeniept: (a).any representation orwamnty made.liyDebtochere4i s)lall,
·piove·to beincpr;ectin any !llllte_!ial ~when made; (b).Debtor shall fail.to observe orperform
any· o}lligation or agreem~ C:Oijtained herein; (c:) Lendei:; in, gqod· fmth,. oelie~s any or .all Ot the
Collateral to be in danger of misuse, dissipation. c:oamiingling, loss,. th~_dargage or des~crion,or
otherwise in jeopardy or unsatisfactmy ~I! ~ l ; t e r or·v!llue; arid (d) any other I::iefault under the
·
Promissor:y Note o:r any other I:oan P.ocuments.

Remedies, 'Upon theocc:ui:renc:eofanyBventofDefault,LendershDilhavethetight
10.
· to declare immediately du.e and payable all or any Indebtedness secured here~y and to lemlinateany
c:o~ent s to ll!llke loans or otherwise extcntfctedifto Debtor. Upoii. such ac:celemdon, Lender
may, in addition to all_ oilier remedies permitted under th.is ;4greement ·and the other Loan
D.ocumeritsandat)aw or.equity,l.lPPlYany swnsin theAccoun.t fo tbe.SlllDS owingundertheLoan .
Documents and any and. all obligations of Lender to fund further disbursements under the Loan
shall rerrnioate. Lender shall have all other :rights, _powe.tS, privileges.and req1edies gmnted ro a
se~d party upon:.demulr.under tbeCQ]ifomia Unifonn Commercial Code or othecwise1mivided
by law. All rights, powers, pi:ivileges, and remedies.ofL~er shall be cumulatwe. No delay, fiiilure
Tans Sccunl)' As,«mmil.llac

•

 or ciisconi;inuanci:·of Lender in -exetcising .any iiglit, power, privilege or remedy hereunder shall
affect ct opemte BS a waiver of such i:ight,pliw'er, pi:ivilege ct remedy;notsba]l any single orpattial
exercise of.any such s:ight,J>ower, privfu:ge,er remedypn:clude; waive.or otherwise affectany other
or fUither exercise ~ f o r .the exercise of.any other right, poW!!t, ptjvilege or tCII!edy. Any
wsiver, pemiit:, consent or approval.of any. kind byLencler of. any·default he.reunder, ct any such
waiver of any provisiom .or conditions hereof; must,be·,in wnting,and sb,all be-effective.ooly to the
extent set {onh in writing, While anY, Event of Default exists: ·(\I) Borrower's i:ight to access the •·
Coµateral undei: Paragtaph.-6(b) above shall be. remiioanid iibd Boc:ower s'hall,:have no right to
access th!! Collateral, and (b) at Lender's- xeqqest, Debtor will ass(llilble· and deliver' the Collateml,
and l;ipoks and n:cords .pemiiiing thereto, tp Lepder,ata reasonably co~"enient place designared by
Lendet .and thereafter; ,Debtor shDll not have access ·to the Collateml. le is agxeecl that_pui>lii: or
private sales, .for cash,or·.911-1:redit, to a wh~ale r orretailcr.or,i11vestor,,or user of'propetty of the
types subj~t to this Agreement, or public aucti011, are all·collililerclally reasonable since.differences
ii\ the sales -prices g('n~rally iealized in th~ different kinds of sales axe. ordinaiily offset by the.
·.
·
'
differences in thi: costs illid .credit risks .ohuch sales.
Disposition ofCollaternl. Upon the.mmsferofalloranypart ofthelndc;btedness,
· ~1.
Lender ~y.aansf!:r:all or any pert of the Collateral and shall be friliy discharg ed.th~ll' I fr(l!ll all ·
liabilityandiesponsibilitywithrespectto.anyoftheforegoingso,lt'llflSfcmd,and~e,,:ransfereeshall
be vested with all;Iights and powers o£Leniler ·h!=[eunder with ~ect to any·of the foregoing so
ttansti:aed; butwith.respect to any pomiln of the Golla~ not S!) ir.msferted,l;-imder shall rell!in.
all tights, powers; pcivileges ·and i:em.edies hereii;i given. Any proceeds- of any disposition of the
Collsll'll11, or any pa[!: th.ereo~ may be-applied 'by. Lend~ to the .paymeni of expi:nses incum:d by
· Lender ip. comiecti,oo with the foti:going, including reaso1111ble,attom~ fees, .ancl the ~ce of
such proceeds maybe applied.by,Lender.towam the payment ofthelildebtedness in such order of
.
aprlication as Lender may :from time. tci'time-elect

Costs, E?£Penses·and Attomeys'fm. Debtorsball pay toLenderm,nediatelyupon
12
demand the full,aniouiltof' all payments, advances, charges, costs :and exp~es,.inch,iding reasonable
attomeys' fees, to include outside coun~fee s and all allocar.ed costs of Lender's in-house co)lllSel),
inc:up:ed byLenderinexercl$lllg any nght,power;-pi:ivilege 011 remedy conf=ed by this .Agree.meat
any
01 in the enforcement thereof, including any of the foregoiog incurred in c9nnection with
without
including
banki:µptcy pmceedilig rebiting to Debto1.o.r the valuation of:th~ Collateral,
Jimiturion, the seeking l.lf,relief.from or-modificalioo of the automatic stay or the·negotiation and
drafiing of a cash Account order. All of.the foregoing shall be paia to Lender by Debtor with
interest at ~ ·nte per annum equal to ten percent (10%).

13.

Miscellnneous. J>resentment, protest, nolii:e of p.totest, notice ofdisbonor and

notice of nonpayment are waived with respect to any proceeds r;o· which Len.der is enlitled
hereunder;:any s:igh~ to -direct the applic;a)ion .ofpll)'..ments of s¢curity (or Indebredness of Debtor
hereunder, or indebtedness-ofcustomers of Debtor, and any right to xcquire proceedings against
others or tp requite exhauslion of secwity·.are waived; and consent to ~ons , foi:beatances or
alterations of-the teJillS .of.Inde\iredness, the release or substit11tion of.secudty, and ·the release of
guamntors is-given w.itluespect to Proceeds subject to this Agreement; provided however,that in
each insll!tU;C, Lender believes.in good faith that the action in question is ~etcial ly i:i:asonablein
that it does not·unreasonably increase the risk ef nonpayment-of the Indebtedness co which the

s

 action applies. Until all Iildeb ~s shall have.bei;n pai4in full, no Debtor shall have any right of
subrogation or contriblllion, .and Debtor hereby waives any benefit of or.any Iighi: to patticipate in
anypoi:tion of the Ccillatetal or any oilier s~Clltity now or hereaft.er held by Lender.
Notice.,. All notice.s or demands of any kind which.either of the plltiies,hereto may
·14.
be required or may desite -~ serve on thi; oilier party in com=tion with this Agreemerit shall.be
served in the IIl!lllO!lf pr(ivided,in, the Promissory Note.
Sevemhilji;y of Provisions. Ifany pr~ion of· this Agreement shall be held co be15.
- prohibited by:or invalid under app~-la w,,such provision sball pe ineffective-only to the extent
· of such prohibition or invalidity, withoui:Jnynljdatlog the, remainder of such provision or ?n'{
relllaining ptQVisions of this ~eemen t
Governing I,iw; .Succ:essors, Assigns. This A ~ t shall be governed by,and
construed'in-al+Ofd;ince with the laws of the S111te of Califlllm!I;. and shall be binding 1.jpon.andinure
to the benefit of the helrs,.execntors, administtstor:s;Iegal .r:epres~l:l!iives, successor.liod assigns of

·· 16.

.

.

~~

(Signe.tore page follows)

."

.

'.

. 'l'lmJS<all il)'A~Ldoc

.6

·'·

 -.,

,

. _, •

I

_

IN'Wl'l'NESS'WHElIBOJ.l, this Agreement has been duly executed•as,ofthedare-first-set
·
'.forth nbov.e.
''[;ENDER.''

Name:·
'Edwm:d''.I''l!Ilg

By:

'Nnme,'Title ·

1..enilro :i\dcl,:ess:

2452"D:enton A-ve; Clavis·Ci.\ '93619

'';I;)EB:FOR"
Tiay::E<pijpme~L.easu;ig'U.-C
.
.("'

.
Br-

.

fl

//2-,,'.....··._:,.
.rrr;...
. • ..

:·' ,, .

Name: lJ Go.\'. :
'llfle: .Mruuigi11g'Member
Debtor.~,Addtesn
I

405-N. I:Sueet
Madeti!, Califomia·93~7
Attention: 'IJ Gox

TongSecuri\)'•llgn:cmcnuioc

.7

.

 EXHIBIT .

_/'

x/
j

,\

PROMSSORYNOTB
PltOMl.lSSO.RY'Ntl!:fE•
$$Q;o.oo:
$505000:
foeto‘ber' 2.
'20131
:2'4~ 2013':
iO~tobel
,_

 v·
PROMISSORYNCYI'E
(TermLoa n)

$5Q,000;00

Madcra;Califomia
Oct24,2013

FOR V.ALUERECE!VED, the U!ldClliigued Troy Equ:ipmentL:asing; a C~mialia:tited
liability company r'Borrower'?, promise(s) to pay to. the order. of Robert 'rarig and/or Virginia
Tsai, ("Lender'?, loca~ at,7.732'.c)aksbote Dt,, Sacwneo.to CA '95831 oi: at~ other place as
maybe designated in writing by Lender,:theprlncipal swn,ofFifl:y. Thousand Dollm ($50,000.00).
cir so.much.thereof ~-may be disbursed'by Leader to or foJ: the benefit-or a<+Olllit.ofBottawer,
. with interest thereon ai:;tbe per-•ooom rate:eq,ua1 to twelvepetc:eo.t·(i2%) "(basecl on a360-dayycar
ap.q cbalged. on the basi~ .of lidWll days elaps!id) lll eficct':fro!n ·time to time. All sums owing
hetell!lder src payable•iµ. lawful money df the United States of ~ca. in ilDmediatcly ~ e
'
.
'
,funds.
·TheonlSlllnilingprlndpalb:ilanceofthisNol!!,togethel:witb;all11caaedandunpaidinmrest,
shall be due and payable :in. £i:,]l on th~ se.cond aonivenmy of the date first set fo.tth above (the

"Ma.t:utlif Date'?.
.- ~-sba il paysemi-mmual int"el:est, p~ts to Lender in the-am.aunt of$3,000.00,

which amount shall be prorate1lon a per diem basis fur any partial month, ctimm.cnciug on lhe fust
day-ofeac'h calendar,n1,onth and.continulngmontbiy thereafter:ondl the ~Date , at which
time.~ unpaid in~t plus 1111 pi:l!lcipal owing bereunder-shiµ,t'be due and payable. Aszy monthly
payments mquired,berell!lder shall-be due.and payable on the fusi: day.of eacli month and shall. be
-applied to lhe ou~clilig'iiiterest.l;>alana; of tbiirNote. This.Note may be pxe-:paid at.any time.
·
.AJJ.y principal balance·reductions may not.be :re-ho.trowed.
Tliis Nou;·is "Secw:ed by, amolig either .things, ~ t aµtain Secw:igr.Agreement r•secw:i.ty
.~eeme.n t'? dated as· of even date,~ith , executed l>y BOJJ;OWer for the, benefit-ofLender.
If:Bom>wer fails to pay 30f ~ymcnt dne herennder, or the-final payment dne 'l11=re11t1der,
within tbia;y. (30). d/lys ,aftm: its,iloe date, ot upon the occurrc;nci: Qf any other D. .; under this
Note or the·Seconty,:tl,grecment, !hen Lender, at its op~ ml!Y'inc:ease the interest nte payable
hereuruier ID 'five (5) pei.t:entage poinbi J?ci:'ai:iti®t.(tlie '',D~fault In~est ~te'?, such.inaeased
rare to applylll!til sach d,elinq_uentpayt:p.e11t(il) ~ bcco. p~orsuch otherDem.i:dtbas been c;ured,
as ~plkable. Aci:eptanc:eofmch late chw..-ge and interest at the D.efi!µltinm.i;estRate-Rhalln0tlimit:
,the~ ofLen\fer iq· comp~perfumiance of any.obligation oc exercise ~y other mriledies undet
the terms of this Note or the·Secw:ity Agreement. Adclitionrulyi upon.tlie._oc;cm:ceo.ce of aDefimlt
or event that, with the gi.ving of-noticeo'.di;psc of time; or both, :would cohstitiue aDemulr, and so
long as· such Dclinill:· or event that, with, the givjng of notice or lapse of time, or both, would
constitute.a Defiruit, µ:mains =ed. Lendc;i: shall.be entitled' to suspend-th" rnaking ofadvances
undei: this Note and:sruµlJ,ave no obligation to make 30f futtlier aQVBllceB under this Note.

 If (a) Borrower.shlilUiill to paywhendueanyswns,payablclu,rcunclet; rn: (b)·aDefault (as
defic,edin the Sec:w:ity Agteement) OCC\llll. under. tlie Secw:ify Agi:eement or undel: any nbligsrioD
secw:c:d tbea:by.· or, (i;)· the property'whlch is subject to· the Secw:it:y .Agreement, or any pot!:ion
thereof ol:intetest thc1:cin,is sold, tamsfeti:ed1mo1tgaged, assigned, encmnbcred ocleased, wb.ethct
vohmtlJr'1y.orinvoluntru:ily or by.opemtiro oflaw c;,r 01111:1.wisc, other than as CXJ_:n:tjSslypemiitted by
Lendedn w:riting;,'l'}IEN Lendei: mll.y, l\t its sole option, dcc:lru:e all sums awing uniler this Note,
immediarelydileandpay,ible;pro:vidcd,hc;,wever,thatifanydocumentielatcd.toa,:isNotep;pvides
fo.c antomllric accclr:mtion ofpayment.of sums owiog hereunder, !ill sums owiughereµnder-shall be .
automatically due ~a:payablefu accordance with the te,ms of that document

If any attomey is engag!!1{by.Lenaer ID enfon:c or defend any provision of.this Note or the

Security Agreement,· Ol.' -!IS a consequence of~ Default, with or·withouj: the filing of any legal
action or proceeding, then Borrower shllll.pay to ;Le.o,der imme'iliatcly µpen demand·all--attomeys' ,
~s and all costs incui:tedbyLenderm, connection ~with.in cluding; any incuttedin,conn~on.
with any bankmptcy. proceedings-or any appella~ proceedings, .togeth er~m~ thereon £:om•
the elate .of such d~d until paid at the t111J:• ofinterest·applicajile to the principal balance owip.g
hereuncJer.;as;if.suc;h.unpaid.attomeys~ fees-and coslll had betl!]..addedto the principll).
No,pi:evious waiw: and no.failure or delay by Lendetia adingwith mspei;t to the terms of
this l;'tote or the Security ,4.greementshall: constitute a w.aivei: Qf any bteaeh, default, or.milute,of
conditionundetthis:Nott:,theSecwityAgi:eeillentortheo~tions.secon;dthercby. .A.waiverof
any term of this Note,the Security Agreement or of any ofthe,obligations secured thereby must be
made in writing and shall be limited to. the express written terms of.such waiver. Iil the event of any
inconsistencies between the temis ofthis Note and thetemisotlllly other.doci,µnent~ted to-the
loan evid~ by this'Notc, the.terms ofthis Ncite shall prevail.
Time is·of the.essence·with respect to everypmvision h.ereo.E

This Note shall be deemed to be executcd amldelfye[edintheStateof Califonµa Borrower•

(i) Dg;!!CS that this Note shall.be constmed acco,:ding to anQ govi:cned by the laW11,of the State of
· Califomia. (11) cot1sents to pcmonal jutisdictionm.the St;1te of Califumia, and (iii) consents.toven-qe
in Fresno County, dilifoi:gia, for all actions andproccedin&!l with.iespect to this 'Note, ·and y.raives
any rlgb.tit:may have to,3!1Sert thecdoctrine. offomm n011 coilveniens,or to object to venue·to the,
eJ!;tl:nt any pro~~ is brought in.acco1-dance-with this pataauPh.

.Ali.noiicciiorother!X]lllniliriic:sti=.tequiredorpermittedtobegivenpw:suanttotliisNote
shall be gfy!;L to the BOJ:[OWI?[ or Lender at.the ad!1[Css and in i:hemanner:pwvideil, foiin the Loan
Agreement:

'!'his Note. and the ~ccuii,ty .Agreement contain or expressly 'incoxporatx! by reference the
encl.re agreement of.the parries;with i:espect to the matte1'll contei:nplated therein ,lllid sup~ede all
ptlol:negotiations or·ngteements. written .or ontl. 'The Notc·and Security .Agreement shall not be
modified except by w4ttcn isisb;ament executed 'l:!y alf pm:tics1 Any reference ID the Note and/or
the Security A~eement inc:liides any smcndments, :renewals Qt extensions now or hereafter
a)_>pJ:?Ycd by Lender in wming. ·
n;nmg PIOlllism,yNalo.doc

 [Signature
Page Follows]
Follows]
[Signature Page

R'nmg Promlsstuy
Natalee
RTmg
Pmmfssmy Note.doc.

3
3

 st
INWITNESSWHBREOF,Bon:owechasei..-ceatedthisPramissoiyNoteasofthedatefu
wtlttec. above.

·•'BORROWER?'

Ttoy EquipmentLcasiilg IJ..C,

a Califnmi,,_nai:rted ~ilj~~ company

:i~j¥-

,.

By·

'

· Ndme: 'lJ Cox 1

1

Its: Mnnaging Membet

R'Iung Pmmissol)' Noto.doc.

4

 '

..

,

·,

'·

.
;UCC FINANCIMG:sr4re•r FULLY
and

FOUOWINS'lllll

A.W\Mc & PHO

r

OF CDNlllCT AT FILER [opllmlllij

- '

'ID: lNJlll!Oll!ldAIIIIIBS5)

0

l

Robert Tang
7732 Oilkshme Dr.

Sac1B111ento, CA 9583 i.

j

.l

TH!!ABD11ESP.liClilS FOR FlLING DFPICE USE 0111.Y
nanu,s

M!DtllErlAl,IE

""""·
C

POSTAL.CODE

BTA

•

Madem

93637

CA
OF.ORGANllAlJON."

.. OBA

JI», • ..,

't8-0R

or=mb!ne names
FIIISrlW,IS

SlJfRlt

MIDDlENMm

cc
lMf0RE
l!IIH

20,;;JYPSOiORGA!'Jm\llON

R

orNAM!!'aITD'llll.,ASSIGNEEDFASSIG OR

111!7

2f.lAIRISDICTI0NOPO

--lasert .

mtmUl!to:aDMtnOmllDlllµll:

nama

ut3

IITAll!

PIJ'l.ll'l,CC~

CA-

.9S83l

USA

•
All assels ofD.eblnl'now !JWDed o r h ~ ~ ini:lu~ blitnt_Jt l,imiled 111·~golpment8cheduµ, eliachild as BxhihitA,
the
togetherw.ilh all·~enlS ,,sub~;_l lllll_add iliou• ~erolll-and.tha'produc1B:11111l'p111ceeds lliemitloctiledon-or related to
aperatiohs coruluc1ed gmerally ln:thd tr/!ilE!l Status or C!imula-

FDJNG•OFfll:ECOPY-NATIONAL UCC flNANCIIIG Bll'.'!EMEll1' (!'ORM UCl:1] !JIEV. 01101/llll)

\

\

 EXHIBIT A
EQUIPMENT LIST

,,• ·~ •• ;;.,"-,t ciuant1(v"
, ·: .
I

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1
I

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1
1
1
1

1
1
1

,J.•, • • _ ~-

Hllachl
Hllachl
Hllach!
Hlhlcld
Tmex
TolGX.
Terex·
Tmex
Tmux
Peedess Paga
emn.tI

I

i<emm!h

1

Aipo Chalma!s

1
I

Mu/Uqu!p

1
1

. ": ....

Make
Rnd(Syslems

i
1
1
•1
1

IJnCQln
ComaD

Temx
Ganlner DBllYer
CtmyOn
TEIIIX

Terex
F,uelral

2

n/a
n/a
-Msl
n/a
n/a

1
1

n/a
A!la-l'ab

5

Yallllrama
Goodyear
Temx

2

1
2
1

6
5

Macl,J
-~ 62'X24(W~creen Plan!

TAIIGW

'DCMDIOOI

Serial Number(sJ
407-2

20IJ.IZX4601.GExcava!Dr
2llDI EX450l.C511XeaValDr
1996 EX400LC3 Ex,:avalor
1995 Ulj6lll Exa!W!Or
3307 55-lon Ral:kTIUck
3309 65,mo Rad<T111ck"
33D9 55-loa RaccTruck
72,j,1i'111nl Elld,Laa4llr
9110 F111nl Em! l.om!er
19BD3!1'0Ilfi~d Roal
2008 6XB Pump
~D6x6saml
12.!i KW Generamr

DCMOI035
DCMDI038
DCMOI026
DCMOI002
DCMOI025
DCM01003'
DCMOI004
·DCMOI040
DCMO_l041
D~l007
DCMOI042
DCMDI043
DCMOIOIB

16JOOP00010765
16CPII08380
Illa
186
711168
66141

2007 Mll!Hqulp 36KW Genemlm
SAUD DleselWe/4llr
2007 5RB EM1&3 Pump
i\lAIJDO Ug~IT"6er

DCMOl016
DCM011/l15
DCMDID21i
DCMOI~
DCMDIIX!T
DCMO!OOB
DCMD!D44
DCMD1045
QCM01046
DCMD1047
DCMD104ll
DCMOIIJ.l9
DCMO!OED
DCMD105t
DCM11105Z
DCM011153
nl•

'rai3971

3Z5A/r,ComplllSSOI

2DU724161h Will Eqmptra»ar
ca Crawlerliador
DllOO CrawlerTmdllr
45' Van :rniier
40'TocllliTiar
4B'T00ITl8/ler
10' X40' Cll!Jlp War
210.i Fuel Tank
!OD llam>I Fuel Tank
61100 gal!on Fuel Tank
tll94:4x 12'x54'C2/np
21135
12X241i!m
Rod<lruck l!nis

nla
n/a.

68134

Illa
l!i1A5582
nla
nla
Illa
610

lihi
154041
61/f269SO

WZ4870
Illa
400117
PC8287Z584
DXZB8SOll2'

Illa
Illa
n/a
n/a

n/a
nfa
RB3ll4
nla
nla
nla

,

\

 .UCO.FINANCING STATEMENT

,v

FOUOWINSTII
B,SENllACKNO

r

EMEIIT'fl!; (Nameandl\

v: ., "a•Tsai

7~ak shore Dr.
Sam'81Dlliito, ~ 9~831
. :.,,

.,,I

..

J

L

debwn&ma 1 cr".ili •dcu1atafil:lm"Viatootco

1.DEBTOR'S~FULLl,EDAI.IIAME•ln•
11;1,;~IZA :

OR

E

.....,,,...

LMBINGLLC

,SlAlil'W,, S

10. TYP
, L'[.C

INFO RE
RGAllllA'l1CN
EIITCII

1

debturname

EXACl'·FIJU.LEGAI.NAME-lns<!Jlo

or

COUNlR\'
20:lYPE.OFORGAM1%AlJD

EolTOTALASSlllNEEOFASSIGNOR

•2'.olURlSlJlCTI.

-CMart

DON•
seeu
5UFfJX.

FIRSfNAME

Vi • ia
CIIY,

.Sactmnento

.........

STAll;_

POSTALCD~:

CA . !>5831

COUNIRY

USA

lo ;,Uaohea as BxhibitA,,
Allessets·ofD•hlor 11ow•owm:cl or b,;reallm ac:JIWIEd,,including.butllOf lllliltodto Bqiili,moptllchedu f,locate11'on.ornolaled,tod!~
edslhmea
nc!proce
togetherymhpllreplacementil,subs$uti011Sandudilitionstliureioand-1hepxudm:is:a
·'
operations conducted generally in1he U:iilled Sllltes o r ~

... ..:- .
. : .-.
~

Ii. AL'lmlHA 'IM!Dmll lA'IION[l l-~

"'

□LEIISW.ESS<IR

u,,- (or """"""I 01 !la
1>!, FlNA!ICUll3 BTATEM£Hl'b l<i bo'ru.,/•
.
•
hni,

REALESl'A'teREC01UlS.. Ab:h'AiSl)iiu
DATA
B.OPl10tw.FILER

01/01/08)
fllJIIG DFFICE !,OPY-N /\11~ UCC FINANCING BTA'reMENT(FORII) UC~) (REV.

0NDN-UCCRUN~

 .. -~7___
,:. ,._____;....__'v__',·______________'. _____1_ _ _ _ _ _ _ _ _.,
/,..EXHIBIT A
EQUIPMENT LIST

. .:.:. .. .
'

--

Troy Jl·qui,pment Leasing LLC

-

4,'0,S _NI

·s·t., Madera, CA, 93637

...
Make
RllckS)'s!Bms
1

Hilac!ll

1

Hltaclll

1

Hllacbl

'

'Temx

1
1
1

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Hl!acbl

,1
1

1
1·

1

·Tt;trex

Temx •
T811X

Pmdess Pall'
"ComelJ
Kenwmtb
Alice_ Clllllmara

Medel

TAaG#

Serial NU111ber(s)

52' >( Z4' Wasb!ngl5a1lan Plant

OCMOIIJOI

401-2

20IJ4ZX41iOLC&cawlur
2001 El(4601.C6E=lalor
1998 El(4DDLC3 l:xcavaw
1995 UH51l1 l:xcavalllr
3307 55-ton RcckT111ck
339955-lan Rack TIii ck
3399 &5'lml Rcckirucl<
72-61 Flonl End Loader
enc Front End loader
1980 38' Clliold Floal
2006 6XB l'lllnp
C-5!10 8XBsmnl
125 KW'Gonerator-

.200tMllltiqulp ~BKW 6'oerslor

1
1

Mullfqlllp
Lincoln

1
f

eom.n

1
1

Gall!ne!DIUYRr
Cm!yDo

1.
f

Terax
Temx

C6 ClawlerTiadm'
DBOD CnralerTmclor

1

Frllehal
nla •
nla
Alm
n/a
nla

,15'-VanTraler

Terex

2

1 .

z
1

..,.

2

1

1

Alia.fah

5
6_
5

Yolc!ilmma
Goodyear
Temx

,.

SA250_Cfasal Welder
2007,SRB EM16-3 l'Ump
Al.4000-Llgb!Tl!Mll'
321il\lr COIIJPIBSS'II"
200124' euiWl!I £quip Tml!ar

4D'Toal'Tililer
~T•c:I Tlallllr
11l'x40'Can1pJraisr
210 Banel Fue1Tllllk
!Oil Banel FIia! Tank
6000 gallon FueiTllllk

1ffl4x1!'x64;Camp
.21x35·
12~24.lille

l!Dck~ktims

DCM01035
DCM01036
DCMD102B
DCM01DOZ
DCM0102;i
-DCM01003

f&,IUOP00010785
16CP.0083BO
nlil

186

DCMD11J04

71866
66141
65134

DCM01040

n/a,

DCM01041

15245S82

-DCM01007 nla
OCM01042 .n/a

DCMP11143
DCMOIOIB

n/a
670

DCM01016
,DCMD1CD5
.OCMIIIO:IB

DCMOlll39

1%-03971
Illa
154041.
IM'2ii990--

DCMOiOUB
DcMOlll44

'411067

,oCMOioar \'l'l4BTII
DCMOI045
DCMDI046
DCM01047
DCMil1048
bCM01049
_DCM01CSO
DCMll11151
-DCMD11l52
®M01_053
nla
nla

Illa

nla

PC8ZB12B84
DXZBB30P2
nla
n/a

.n/a
nla
nla
n/a
RB304
n/a
nla

n/a

 '._)1,

SECUitI.TY AGREEMENT
TIIlS SECUlU'I'Y A G ~ (this, ''.Agreement") is made as of this 24" day of
(?ctob~ 2013, by.and:bt;!:ween'TroyEquii,II\eatI.easmgLLC,:a,Califumialimitcd liability compmy
("D¢btoi:''.), and.R(!be,i:1;, 'l'aug and/ oiVkgiliia 'rsailocatcd at 7782 OakshoreD,r;, SacrameatO CA,
95831 ("Lender".). ·.

RECIT.A:LS
~- _~UEAS, pumllllltto thatcettain.p1'0missocy 11oteof even date herewithby.:md.
between Deb~ Rlla Le!,.dei: ..("Ptomissory Notej; Lendc.t .is.,makiilg a -loan .to Debtor in the
?"igir;,~ fiice ptincipal amollllt of Fifty· Thous~d Dollru:s ($50,000.00).
B.
This ,Agreement-and the P.tomissotj'Not'l, a.q they may be mocijfied; !l!Il,er,J.ded or
supplem~d from,. tjme ~ tiipe, will ];lereinaft/'1:. b.e tefei:re4 to collectively B5 the' "Loan
'DoCJi!:nentii». Capiializecl terms not otberwi•" defined betein shall each;J:mve the meaniogsetfortb.
.in the P.rO!llissory Note
C:.
~ Debtor is qesimus cif seeming ix> J;.eftdei: the repayment of the.
indebtedness evidenced by the Note ·and the· rerrorrnmr~ of the othel: teaps, coveomts md.
agreements,oontailled herein and in the Loan Docomeuts.

.AGBEEMENT
!.>!:OW THEREFORE, mgood nod valoable coosidewion., the receipt l!lldsnfficieocy of

which are·hei:eby acknowledged by .Lendoo.aud Debtor, snc:)ipatties h<;i:eby agree as .follows:

Gnmt ofSew;i'l[ Tnterellt. D\ilito.r.hei:eby gmn!ll ~ ~de.r·a secw:jty ~ in all
personal ptopi:r\',Y
Debtor, whethet. now owned or hereafter ·acquited, whetever located,
including, without limitation, all right, title and)ntctest-QfDebtor-iii, to and ~er the follo~
lqcat~ on or..teJatlng·,to the p.ropetty nod opemtions thereon kicated perally, bot not limited to,
the !!tea ofMcDame Creek, British Columbia.(collectively,,the '!Colla~:

·or

(a)
All© •flrnent,~cluding,:withoutlimitatlon, futures, (11) inveotoi:y; and (iii)
othe.r,goo~ of any natw:e w:hatsoevet;·
.

(b) . :All accounts;'all chattelpaper; all comroerdal tort claims and 0th.er claims at
causes. of-action;, all: ileposit accounts; all docomeots; all gene:taf':iatangihles~ including, vilth~t
limitation,·all ttllde secrets, all tmdernatlai, s'cl;viccmatks and trade names and associated goodwill,
all patents, all. copyiigb:tll. and all other:intcll.ClCtiw, pmpru:ty; ?TI eoftwm:e, and allpaymentintangibles;
.alHnsttumeots,; all.iri.yesti:(lent ptopertf,rullette. of credit rlgh't:s; alll~ pf aedit;;allmoncy;and
•(c)

To the e:<tept'no~ o.ther:w.ise desaibed above:

(i)

4fi insman.ce policies nnd water stock.

 (ii)
All =hirectutal, stm~ mech;lllical and ellf)neerlog. ~s lllJn
specifications prepated fox·consttucdon offu:!prqvements or e;traction c,fmiaernJs,.,
from any xea1 property now• or hel-eaftcr owned ·or1cased by Debtor 11t1d all studies,
dnt11 and .dimvings :i:clatecl .i:hi:l:eto; and also all contracts ,and agreements of the
Debtor .;eJatll!gto !:he fbresaingpJaus and:~ecilications or to the foregoing studies,
data and drawings or .to t:\ic c~truction ·of mipiov'ernell.ts on or ext=tion. of
mihci;ais or gravel from any teal property now ·or hezeafte1· ·owned OJ: lemied by

Debtor;

.

(iii) All refunds, tebates,.reiml}utseml"'Jts, tesenres; defen-ed .payments,
deposits, cost saving!;, govemmentel subi;idy paym~ goveawientally-tegistered.
credits (sucli as, by·way of cxsmple Md not a• Jirnirnrion, emissions ·tednc.tion
c:reqits), other qC!Utl!J waiveJ:s and payments, wh~'.in cash or kind, due from or·
payablelby·!llly go~cnbll authority or an,yinsumnce or utility, compgny ~g_
to miy or. \ill ·of the pci:sonal";propetty or·.real propctty now . o r ~ owned OJ:leased by· DebtoJ:· or :to anyhp.rovements thc:reon or any of the other r.oJlatcrnI,
desct1"bei!.herein or.aiisfug out of the satisfaction .ofaqy.conditionimposed upon or
the obmiriingof any appmvels fur 1hedevcl.opment ·ofthe any tealp1"0perty now ot
hereafter owned by Debtor or the improyemea.trthereon;
•

(iv) .All relunds, ±ebates, .teimbw:sements, aedits l!.D.(i. payments -of any
kind due from or payab1e'-by any m,vi:mmentel authority, or otb'cr,cr;itity for ;my

taxes~ special ocres,' asse~ents, or simiJl!t ·goyemmental or quasi~goveti!mi;ntnl
chatges or levies imposed uponDeb!ill::with xespecttO the auypemonal property or,
1-eal property·now or beteaftel; owned p_r l~sed by Deb!DJ: and with respect ,to ~
improvements thereon or to any of the other collateral described - ~ o_r arlsiag
eut of:the satisfaction of' 11t1y condition imposed upon or the ob!Biaing of lltlY

approvals fur 1he develepment of any real ptQI>etty now 9r
lease,i'by Debtor or the improvements tha'OOD;
(v)

•after

owned or

All supporting o~ons with tespect te any other collat=J; and

till. teplacet'!eolli, 1,rodocts ~ proceeds o~ aa:d additions am!
acces.si9l18:to, lltlY oftbe•fo~gcing; tcgetherwithaJlbooks,.records and files relating
to anr cif.i:he ~
-·

(vi)

.(d)
All tcrms ;used hci:ein whitji are.1,dcfncrLi11.-the....Qilifi?mta. Unifo1J11
Commercial Gode shall.have the· san¢ ~gs, '\l(hen used )ll:tcin, unless the· context t e ~
othel.wise.
2.
Qbligi,rion• Secured. The obligations secw:ed lieteby are the :paymen~ and
peifomlance ofi (a)_ oll,presem: and futut:e ;£ndpbtedness ofDe)ltouoLender,.mcluding, withoutlimitation, all Indebtedn_CS!l owing, que tind/or requlied under. the Promissory Note and this.
Agweal\:Ot,,od (b) nll.presedl: and futurcrnbligations ofDebtor~o Lender of evei.y othertype,kind
ei; c:hatactcr. The woro ''Indebtedness" is used herein in its most.comprehensive sense and includes
-anr-~alladvances,·debts, liabilities andmonetmy andnon-monetat:yobligations of every type and
RTang Sccurily Agp:c01eut.doa

2

 --.

, incmred m created, whethct
kind of Debtor, or any of lhero, heretofore, now 01: heteaftcr made
not due, absolnte or contingent,
vollltlllll:y or invo lan~ and however arising, 'Whether due or
m: Debt ot may be liable
liquidated or UDliquidlltea, [letermioe<i or undelclmined, and wheth
i;s :may be or hei:eafter become
individually or jointly,, o,; whether 1ecovei:y up on such Indebtedne
·
unenfotceable.
aru:e ofall obligations
Temrlnntion. ~Agr eeme ntw. illt=i nateu pon thepetfurm
3.
of all Indebtedness of Debtor to
of Debtor to Lender, including witho ut limitation, the payment
Lender existing or committed by Lender at any time.
hereunder:
Obljgations nf Lender. Lender bas no obligation to make any loansties s=e d
4.
liabili
contingent
While Debtor is not in default, Lender w:ill., except te the amount of
option, all sec;urit;y in the
ers
Lend
at
y,
hei:eb
hereby. either xelease or apply to J!D.Y debt secru:ed
contingent liabilities may be
fOllll ofcash or ittevocable bank credit. Any·sums withheld to secure
ovei: which Debtor _shnll hnve no
deposited at Lender's option in a non-interest bearing aceount
n qf the Account hereunder.
contto1, and the same shall, fur all purposes, be deemcid a portio
nts to Lender tbar.
Rq,resentation5 and Wao:antie... Debtor 1epresenm and warra
5.
ebtorbastherighttoexec:oteand
(a)Debtor.istheownet:andbasposscssionoftheGollatetal;,(b)D
unt, and to otherwise perfotm in
deli'vet. this Agreement, ID .gmit a secutlty interest in the Acco
delivei:y oor pei:t\,rmaocc of this
accordance -with this Agreement; (c) neithei: the execution and
wene any agi.-eemcnt, clomroent,
Ag1-eement by Bori:ower shall -violate, breach or otherwise contt:
; (d). :et>n"Ower bas not sold,
instmroent,laws or i:egulation that Borrower is a party to or~ubjectto
any ofits Iigb.t, title orinrerest
conveyed, assigned, pledged, hypotheclii:ed, oJ: othe:twise t:raru!fertea
teral is genuine, free from
CoDa
the
(e)
in the Collatetal to any petSOn or entity othet thanLender;
yment, defenses and conditions
liens and other enr:nmhrnnces, adverse claims, sctof!s, definilt, prepa
an~ where applicable,jn any
ptecedent of any hind-oJ: cham ttet; (f) all statements contained herein
no fioancing statem ent coveting
documents related to the Account are tt)le and complete;.and (g)
r, is on file in any public office.
the Collareral, and naming .any secoted p!lliy other than Lende

6.

Covenants ofDebtrn;. _

ss scmred
Debtoi: agrees in genetnl: (i) to pay and :E_>erfuIDI the Iildelltedne
, demands,liabilities and expenses
hereby when due; (u) 1:9 indemnifyLendei:agninstalllo·sses, claims
all costs and expenses, including
of every kind caused by property subject hereto; (ii~ to pay
ctioo, p.rcse.rvation, realization,
·reasonable attomcys' fees, in= d by Lender in the perfu
nder, (i.v) to peimitLeoder to
enfmcement and ~ ofi~,tights, powers and remedies hemo
as Lender de= necemu:y to
exercise its·powei:s;. and (v) to execnte and deliver such doaunents
mplated hereby.
ci:cate, pene ct and continue the secntlty intcresll! conte

(a)

y, assign,
r;>ebtor agrees with .regard to the Collateral: (i) not to sell, conve
(b)
on the
lien
st in, ot pctmit any
pledge,, hypothecate, or otherwise transfer any right Or intete
r; (n) to keep, in accotdance with
Collatew or any portion thei:eot; except in fuvor of Lende
.records regarding the Collatetal,
•generally accepted accounting principles, complete and accmate
theteof at any :i:easonable iime; (iii) not
end to permit Lend er to inspect the same andm ake copies
nder, with other property or ,
to comrnioglr: the .prop:eds of,the 8oilatc:tlll, or collections themu
ttranc Security Al)TI>CIIICJ11.doo

3

 ....__

assets; and (iv) to provide any service and. do.any other acts which may b_e necessaty to keep the
• Col]ater/1l free and clear of all defenses, liens, rights of offset ruid counterclaims.
· · 1.
J>mvers ofLendet. Debtor appoints Lendet its true attorney io. fact to perfoilll IIDJ'
of thc.followingpowefS, which ru:e coupled with an inteJ:est;, ru:i::ir.revocable until temrlnation of this
Agreement and may be exercised from time to time by Lendefs officers and employees, or·any of
them, whethet or not Debtor is in ·default: (a) to perform any obligation ofDcbtor hereunderfu
Dcbto,:'s name or othetwisc; (b) to give notice ofLendct's rights in the Collateral, to enforce the
same and Jilllke e:cteosion :agreements with respect.thereto; (c) to release security; (d) to res01t. to
security in any order; (c) to pi.-ep~ execute, file, .1:ecord or deliver notes, si:curll,y agreements,
sc;hcdules, designation statements, £imw.cing statements, coniinuation statementi;, termination
statements, statements of secarir;y agteement, applications forJ:cgisttation or like papers to perfect:,.
preserve or.release Len!lct's mttrest in the Collatei:nl; (~ to take cash, .iustrument.q for the payment
ofmoney and otherpropcrtytowhichLender.is entitled; (g). to prepare, adjust,.execute, deli'vei:and .
receive payment under insmance claims, and tp collect and .receive payment of and endorse any
insttumentin payment ofloss or 1-etumed premiums or any otherinsorance refund or1:etum, and to
apply such amounts received by Lender, !It Lender's sole option, .towllfd .tepayment of the
Indebtedness or i:epla~t of the Account; (h) to exercise all #ghts, powers and.temedi~ which
Debterwoaldhave, but for this Agreement; wilhr~ct to,the'Collateral subject hereto; and ©to
do all acts and tllings and exea:it.e all documents in-the'naine ofDebtoi: or othetwise, deemed by
Lendet as necessaty, p1-oper and convenient in connection with fue prcsemtt:10n, perfuction or
enforcement of its rights hereunder.

8.
P$<'Qt ofJ>mmmms, Taxe,q Char,gi:s, Liens and Assessmenrn. Debtor agi:ees to
pay, prior to delinquency,"wHn,surmce pteminros, taxes; charges, liens and assessments against the
Collateml, and ·upon the tiiilw:e of Debtor to do so, Lender at its option may pay any ofthem and
shall he .the sole judge ofthe legality. or vruidity thereof and the amount necessaty to dischafge the
same. Any such payments made by Leodet shall be obligations of Debtor to Lender, due and
payablelmnlCcliately µpon demand, togetherwithintei:est at a: nte determined in accordance with
the provisions of Section 12 herein, and .shall be secw:ed by the Collateral, subject to all t:erms,and
conditions of this Agreement.
·
9.
Events ofDefuult. The occurcence of auy ofthe follo:wmg shall constitute an "Event
ofDefiiult" under this Agreement (a). any i:epresentatiori orwarmntymad'e by'Debto.t herein shall
provetobeinco.rrecfinanymaterialrespcctwhenmade;(b)Debtorshallfailt:oobse1vecmperfom1
any obligation or .agreement contained hetein; (c) Lender, in good tiulh, believes any or all of 1he
Collatetal t.b be in claoger ofmisuse, dissipation, commingling,loss,.theft, damage or desttaction; or
otherwise in jeopardy or unsatisfuctoi:y.in character or value; and (d) any other D;:fault:under the
P:romisso,:y Note or·aily otherLoari Documents.

.10.
Remcdie.~. Upon the occµrcence ofany Eveot of.Defuult, Lendei: shall have the right
to decll!IelmnlCqiatcly due and payable all or any Indebtednes.s secured hereby and to teaniaatP. any
C(l(IlroittnPnts to make loans or otherwise extend credit to Debtor. Upon mrh:aci:eleration, Lender·
may, in additipn to all other xemedies pemtltted under this Agteement and the other Loan
Documeots and l!,tlaw or equity, apply any sums in tbe:A.cconntto the sums owing under the Loan
Documents and,any and all obligations ofLendt;t to fund ·further disbutsements under the Loan
lt"fang Scauily Asn=cmant.iloo

4.

 grmted to a
sha11 tcn·ofoare ~de: r shsll have all otliet rights. pawetll, p ~ and 1'Crnedies iseprovided
secmc4, pattyupo11.delimltU11del: theCalifor.aia• Unifoim'Comi:netcialCode or othci:w
. No,delay,£iilw:e
bylaw. #[sg~power.s,prlvileges,.and.iremedies·orI.cndei::jhru(bec:mnul;itive
hereunder shall.
tcmedy
or
e.
or·discontinuance· of.Laidei: in ~ g miy right;,. powei; p.:iivilcg
l!ingle orpariial
any
y ; nor.!lha]l
~ or.operate as a waiy(l!: of sncq, .tlgh~ p~ pciv.ilcge or ~
affel;tany other
exei:cise ·ofmy sucli right, power,prlvilege·or retl!,e dy~µd i;; waive or othe.tw:isc
remedy. Any
or
gc
pi:ivile
power,
right,
ot fu.tther exercise i:be!."eof (;>r the ·eii;~ c pf any other
otany sncb
der,
hereun
:
waiv.ei:; p!lJlilit;, ~en t 0£ apptov.al of,.any kind by I.ender qfany dc&uli
OD1y to the
e
,waiver of anyptov.i¢.ons.or conditions he!.'W~ must be iti,writiagl\Dd,shaR.be effectiv
ht to access .i;bc
extent:set forth in ,vming. Whili; any Evi:nt ofDefault.exls!S: .(a) Bo1:t0w.a-'s·.tlg
no right to
have
sliall
. • Co ~ undcr. Paragraph 6(b) above·sliall i,.. teanioated,and.Borrowcr
the Co1iateral,
access ihl:-Gollatei:ai, •and (b) at+=r!er's •icqnest, Debt:at will ~~1 e and qeliver
designated by
aiidhoolaj and re~-pcrfui11iogthemto, i:o Lendet.nt'l)reasonably convenient place
public or
that
agi:ced
Itis
ral.
lender and thereafter, Debtor shall ncit,hl)ve,~cess to the Collate
ty of tlie·
proper
of
private sales, for cash oron creait, to a.'wholesaleror:retailer or investor, qr.user
since diffi:ten.ces
types subject to this Agl:eem~ Qr public auctiOD, are.all commcrcilµly i:ea&Olltlb~c
offset QY the
ify
oi:dinar
l!%.f!
S;lles
in the sales;.Prices ~ .realized in the differei;it ~ o.f
diffurenn:s:ib. the costs and-~ rlsks: <ifsnc li sales.

Disposition of Collatefll!. Upon the ttllnSret ol;all,or any patt of the Indebtedness,
1:1.
the,:eaftel:fromail
Leodermaytransfer.il)lQranypartoftheCollati:ail1111dshaltbe.fullydischarge4
the trans f~
and
m:d;
liability-,and i:espof!Sil,ility wilh ~cct to any of1he fut ~ so ttimsfe
theforego.iDg .
of
shall be vested with al1tights 1111d,powcrs.ofLendei; hereunder with-respect to any
:.d;- Lender shal)..
·~o ttaosfe md; but with ~ect ,to any pottion uf the Collarei;al not so fmnsfem
disposition of
of.any
ds
procee
reti1io:allrjghts,poweni, prlvileges and ~emedies herein given. .Any
es incurred by
expens
of
the Coilat:e11JI, l)J:anypartthereof, may b~.applii:dhy I eo:dert.o the payment
the.b:dan.cc of
Lender in connection·-with the foi;egoi.ng, including relilionable attomeys' fees, and
in such. oi:der of
,such pmc ~ may be l!PP~ by.I,endei: towarihhepayment of the Indebtedness
~pplication as Lenqe nnay from time to time elect
p.
Co•ra,~ensesand:Attom,eys'Fees. Delitot.shallpaytoLendci:immediatelyupong.
12.
es, includi
dtrnaad the full BIIlOlllll: bf all 11ayments, advan~s, ~ ; costs and expens Lendcr!s la~
of
costs
cated
all-allo
·and
feeiJ
.
ffl!Sonablc ati;omeys; fees, ID ine:lug°e outside counsd
confeaed by
house counsel)~ incw:rep. by Lender.in exercising.any right, powei; prlvilege 9r ~
r~.m c:ooaectiou
this~e ntorin thee1 1forc emeat ~f,inc loding myoft hefule going incw:
the C,,Ilatern~ including
with any banlaµptcy proreediog ~ting to Debtot ·01:-~e. valuation of
automatic silly Dl!. ·the
the
of
without ·limitation, the seeking of. relief from ,61; ll'odifjcari911
paid to Lender by
negotiation and d¢tin g afa cash Account order. .A:ll of the foregoing shall be
Debtol: :with mterest.ata r:rt.e per annum. equal to ten percllllt (10%).
dishonor !lfld
13.. J:y;lisc;cll,m,eouR. Prescntgient;•protest, nQtke ofpi:otest,:noiice,of
r _is cntltled
,Leade
which.
.to
ds
procee
notice of nonpayment ~e waived 'With ~ect ID any
ofDebtar•
edness
Indebt
for
y
sccw:iJ;
hereundet; any .right to diteet the applieatjoo of.payments ·of
ag.rinst
diogs
,procee
reqnire
,hereunder; or indebtedness of CDStximers of Debtor, and,any right to
or
am:es
£otl,ear
ons,
others or to ~equire exhaustion ofs/:QJJ:ity are waived; anii CO!JSCllt to extensi
the n:1.ease of
altrrari!X)s of the term s·ofl nd~s , the relcase·or sribstitntion of secutlty,.and
&TnnlJSecmliy Agn,,mollt.d"'

s

 ,

l

- - - - - .. , .

'....,./•

ga=to ts is given with respect to Proceeds subject tn this.Agreement; p1'0vided however, thaf in

eachinstmice,Leoderbelievesing9odmiththattheacrioninquestiqniscommerc:iailyreasonablein
that jt does not llll±easonably inctcase-the risk of nonpay,:pcnt of tlie lb.debtedness to whil:h
the
action applies. Un~ all~debtedness shall-have been:peid in fall, no Debtor shall have any right of
subrogation Oj: con1D"bulion, andDeblor hereby waives any benefit of Ot.ll!lY, tight to panicipat:dn
any portion of the Collatetal. or any other secw:it:y nqw. or hei:eafiec held by Lender.
14.
Nolic:es. .All.nonces or demaods l)f any kind wliich.eithet of the.patties hereto may
be-requireclOJ: ll;ULY ilesite "fu serire on i:he ot:hcrpm:ty in connection with 1his Ag1:eemeot shall be
served-in the:manncr provided in the P.tornissoi:y Note.

15.
Seyemb!lity of Proyillions. If any provision of'this Agreement shall be held to be.
proriibited,by or in.vaJid underapplicablelllw, sncb,provision shall be ineffective only to the·'lllteot
of such probiliitioo or invaliclil¥, without ia.valiaaling the ,;emainder of such proVlBion or any
•eroaining J?Iovisiorutof this ./l,gi:e~eot.
16;
Gnvr;mfog Law; Succt;smn;. :A.,zjg_ns, This Agreement shall be gov:emed by and
constmeci.in acco1-dance with the laws ·of the Sl;llte ofCslifomia, and shall b,. biiJcling upon,and •
inure to the bc;nefit or-the. heirs, execumi:s, administ:ratots, Jegal represeot:iltives, snccessers and
assigns of;th.e patties,

(Signature page fi>nows)

6

 INWITNES$WIIERE.OF,tbisAgreementhasbeendulyexecutedas·ofthedatefustset
1
fotth abov.e.
''LENDER''

Name:
By:

Robert Tang and/ Cl,!: Vttgioia Tsai

Lender's Address:
7732 Oaksb.01"11 :Dr., Sacramento CA. 95831

"DEBTOR"
Ti:oy Equipme11rgLL~

~t-4

By:
Name: 1J Co~
Title: Managing Member
Debtot's Address

405 N. I Street
Madern, C:iliforilia 93637
Attention: 1J Cox

R'r11nc S=rity Agrc.mont.dac

7

 EXHIBIT 


$503000
Marsh-4,2034:

PROMISSORYNOI,E II
(TepnL oan)

Madera, California

$50,000.00

March4 ,2014

,FOR V.ALUB RECEIVED, theundersjgnedTroy EquipmentLeasing,.a California limited
rofRobertTangao:d/(?r V.u:giniaTsai;
liahilio/ company C'Bortow!lr"), pi:omise(s) to paytQ the·orde95831,
o.t,at;sqch other place a_s may be
CA.
C'Lender"), located:at 7732. Oaksho.teDr., Sacramento
desjgnatPd in w.titiDg by Lender, the principal sum of F'1fty Thonsand'Dollars ($50,000.00) or. so
m,uch thereof as may be disbursed by Lendi;i: to pr for the benefit or acco~ 6£ Bonower, with
interest thereon attlieperl!Dlluin·.tateeq~lto twelve percent (12.%) (based on a 360-dayyearand
charged on the basis pf actual days clapsed)..in. effect from tiirie-t6 µme. .All SumJl owing hereunder
are-pa:} 'l!hlein ~,mone y of the United·States ofAmerica,ini;nmediately available funds.

Theoutstandingptincipalb~ceoftbisNote,togethl:twithallaccruedandimpaid.interesl',
shall be due and payable in full ,oo the second, anoiversary of ,the date, fust set forth above (the
·
.
"Maturi ty Date").

\

BotroWer shall pay semi-arumal jnterestp!lym.ents OllJulr 15 .and December 31 of each year
to Lender in the amou#t of$3,00Q,OO,wbich amount shall be prorated Oll.apet:diem basis forany
partial period. .All unpaidintcrestplus all pllflclpal owing-hereum:ler sball'be due and payable upon
Mab,u,ity Date. This Note may be pm-paid atmy time.· Any ptfucipal balance i:educiions piay not

be re-'\>orrowed.

· This Note is seq1red by; amling other tbiligs, that ce¢ain SecutitY, :Agteement ("Security.
Agr~ ') dated as of even :date hereyiith, executed by Borrowet for the benefit of Lender.
IfBo:crowet fails. to pay, 111\Y payment due herennder, ot the final payment due hereunder,,
witbili thirty (30) ~ after its due date, or upon. the .occu.ttence of any otli.er Default ooder this
Note or the Secw:icy: :Agreement, then Lender, atiis option,.may increase themtei:i:st mte·paya'b.l{:
hereunder to .live (5) peroentage points per:annum (the "Default Interest Rate'~; such ~edrateto appiyUlltil such dejigquentpayment(s)have been paid' or such other Default iias been cuted,
asapplicable. ..t\.ccepqmceofsuchlati?chargeandinterestattheDefaultinterestRatesballnotlimit
the right of Lender to compel pc:tlbrmance of any obligation, or exercise ·any, other remedies under
thetemisofthfsNoteortheSeci;inty.Agrec.ment Additionalfy,.upontb:eoccw:rence.of,liDefaultot
event tha:t, with iae giving· of notice-or )apse of time, or both,wr iid constitute a Default, and so
long as i;uch Pefault or event that, with the giving of notice· or lapse of time, or botli, would
ceillstill/.b! a Default, remains uncured,Lender $all be entitled to suspend the making of a~vances
under.this Note and shall have llO obligation to make any-further advances under this Note.

.

If: (a) Boaower sbal1 mil to pay when due any sµms payable hereunder; or (b) a Default (as
defioed in the Sep.uity Agreement) occurs under the Security Agreem ent or 1Ill\let ·any obligation
secw:ed thereby; or' (p) the property which is subject to the Secwily Agreement, or any portion.

 th~for.interest therei%!, is sol!:!, mnsfem:d, mortgaged, assigned, encumpered or leased, whether
d by
volimtarily 01:involuntarily or by operation oflaw or otherwise, other than as.expressly pemiitte
Note
Lender.in writing; THEN Lender may, at:its sole optiop., decliim .all sums ow.ing under this
s
·irnmediately due and,payablt;provided, however, that if any document related to this Note provicle
be·
shall
r
eunde
~gher
for automatic acceleration ofpay.llll!ilt,Of'BWIJ!l,owing hereundcr; all sums
·
automatically due antl Ji):tyablein accotdance with the teans ofthat document.
If any.attomey'.is,engaged by Lcndei: to eufoa:e or defendany provisio!i o.f this Note or the
legal '
Secmity Agreement, •or as ,a consequence of any Default, with or without the filing of any
s'
attomey
action :or proceeding, thr;n Borrower shall pay to.Lender immediately upon demand all
ion
fees and all co~ incw:red by Lender in.copnection therewith, includiDg, any incurredin connect
from
thereoq
intEieSt
with:
r
with !!DY'b:mkmptcy' ptbceediDgs Qt any appellate proteeding11, togethe
owing
the date of such demand until paid at"the ~te of interest applicl!b!e to the.prlncipaf balance
hereunder ~ if such unpaid attomeys:· fees ,and costs had been added to the principal.

No previous waiver and no fuilure or delaybyLender in actiogwith re;pect to the terms of
of
this Note 01: the S ~ .Agreement.shall constiiute a waiver. ofany breiich, default, or fuilute
of
waiver
A
.
thereby
secured
ons
condition ,mder this Note; the Secm:ity.Agreement or the obligati
be
must
thereby
any tetm of this N9te,,the SecurityAg:teement or of l!llY of the obligations.seemed
ofany·
madejnwiitingand shalibelimited to the express written terms of such waiver. In the event
d' to the
kconsistencies betwe~,tbe teans of this Note and the:terms of1111y,otber documentielate
Joan ev:idenc:ed by tliis Note, ·the terms of·this· Notesball preV'all.
',rime is of the· essence with respect to every provision:hereot'.

This Note shall be·deemed to be executed and deliveted in the State.of Califomia. Borrower
State of
(i), ag:tees thijt this Note shall be c:onstmed acCOiding to and ,govetned by the laws of the
venue.
to
s
consent
{ii,!)
and
ia,
califomia, (ii) oonsents,to pei:sonaljmisdiciion in the State.of Califom
waives·
and
in.1;1,.resno ·County, California, fat all actions and proceedings with tespect to thi&Note,
to the
any right it may have to assert the doctrine of forum non oonveoiens or to object to venue
extent·any proceeding is brought in accordllllce with this paragraph.
.All notices OI other rnmrouoications required or permifted to be given putsuant to this Note
in the Loan
.shall be given to the:Sot,:ower or Lender attire adtlress and·in themaDllerpfovidoofor
.
Ag:teement
the
This Note ~ the Secm:i.ty Agteement contain or expressly ip.c:orpQtate by teference
all
de
superse
and
entire:agreement of the parties with respect to the matters.contemplated ~erein
be
not
· prior negotiations or 'ag:teem!=Dts,:w.ritten or oral. The Note and Seau:ity .Agteement shall the
and/or.
Note
the
to
etence
Anyi:ef
parties.
d'byall
modified except byw tl~~ ent execute
d by
Security Ag:teement includes any ameodments, :i:enewals or,extertsions now or hereafter approve
Lender: i n ~ -

ll.T8" '~Not c n (3)

2,

 I.Signature.Page
Follows]
[Signatum Page Follows]

II (J)
RTangPromlssoryNolO
(3)
RTang Pmmissury Note JI

3
3

 INWITNESSWHEREOF,13cmowei:hasexecutedthis·PiomissotyNoteasofthedate.fi1'&t

w.dtten .~bo=
''BORROWER''

Ti~ E<Ju4>mentLeasingLLC,
· ~an.Y
a Califumia limitedliabili
. ty

J3y: _ _ _ _ _-,-_ _ _ _ __
Nnµie: 'I'j Cox
Its: Managing Member

RTw,gPiomlsscl)''NDIC n (3)

4

 S~CURITY AGREEMENT II
ch

day ofMst
T.HIS:SECURITY AGREE.MEN!' (this "Agreement"J is made as of this 4th y company
limited liabilit
2014, by and between Troy Equipment Leasing ll.C,. a California
oreDr., Sacwnento.CA
Oaksh
7732
at
d
('Debtor''), andRobei:~Tang and/o rVirginia Tsai locate
.

95831 ('Lender'').

RECITALS
by-and
WHEREAS, p1,11:S1lll!lttothat cettain ptomiss0ty note of even date het:ewith
r
g a loan to Debto in the.
between Debtor and Lender ('Promissoty Note II"), Lender is makin
A.

original face principal.amount of Fifty ThouSlllld Dollai:s ($50,000.00).

'

ied, amended or
B. . This Agreement and the P~missoi:y Note,. as they may he modif
collectiyely as the "Loan
supplerne1;1_ted from ti.me to time, will hereinafu:r be i:efes:red 'to
ave the meaning setfotth
Documents". Capillllized teans not otherwise defined herein sbail each.h
in the Promissoi:y Note.
of the
W.HEREAS, Debtor is desirous of securing to Lender the repayment and
C.
ants
coven
other terms,
indebtedness evidenced by the Note and the perfnnnanr.e of the
ents.
Docum
agreements contained hei:ein and in the Loan
AGREEMENT

t and sufficiency of
NOW T.HEREI_!ORE; for good and valuable coosiderarlon, the xeceip
a~ follows:
ilgtee
wbkh are hereby acknowledged·by tende r and Debtor, such patties hereby
I
restin all
Grant of Srg1ri'17Ipterest Debtor hereby grants ;to Lender a secwity.inte
acquited, wherever located;
_personal propetty. of Debtor, whether now· owned or hereafie.r
to and under the followtt!g
including, without ljmitati.Qn, all right, title .and mterest of Debtor in,
lly, but•not limited to,
located on or relating to the-property and opemtions thereon located genera
):
th~ area ofMcDame•Cieek, British Cohunbia (collectively, the "Collatexal''

(a)

.All© equipment;including, wii:houtlimitatioo, fixtures, (il)inventoi:y,·and{w)

othet;goods, of any na~·whatsoever;

'-

All accounts; allchatteipaper; all commea:ial tott claims and other-claims or
(b)
ibles, including, without
causes of action; all deposit accounts; all documents; all general intang
and associateµ goodwill, all
limitation, all trade secrets, all tradematks,.serviccmai:ks and ttade names
all paymentintnngibles; all
patents, all copyrights, and all otherintellectual pxqperty, all software, and
of.credit; all money; and
instruments; all mvestment"property; all letter of eredit rights; all letters
(e)

To the extent not othei:wise described above:
(.i)

All_ insurance policies and water stock.

All architectural, structmal, rnecbaniail and engineering plans and
(11)
of minerals
specifications prepated for. constmetion ofimprovements oi: ~tmclion

 .ftom, any real property riowor.hel:eafter owned or leased by DebtOl:·andallstudies,
da~ and dI:!wings ·~~ thereto; and also all ,cOlitracts .and agreements of.the
Debtor t.eJatingto .the fo.tegQip~pla,ns and specifiClliions or to.the foregoing studies,
data and dtawings or t:o the coDStmction of improvements on or extraction of
.minetals or ·gravel. from at\}'. real property now gr h ~ owned or leased by
Debtoi:;

. (iii) :All refunds, tebates, ,reimbursemeol!!, tesei:ves, def~d·paymeots,
deposits" cost savings, govemmental subsidy payments, govem;ncnmlly--registeted
credits {such as, by wa,y of iµtample and nqt as limimtion, emissiOJlS reduction
~ts), other credits, waivers and payments;,whether in.cash.or'kind, due trom or

payable:byanygovemmentalauthorityoranym.suranceorutilitycompanytelatingt:o
any or.all of the personal property ortealproper:ty now or he!eafter-owned or'leased
. by Debt:or or to any .improvements..thereon or any of the other collater.tl descn'bed
herein or arising eut of .the· satisfac;tion of any condition imposed upon or the
o b ~ ,of any approvll1s .for the development' of the any real property·now· or
·
hereafter Owned by Pebtor or the .improvements thei;eon;

(iv) All retunds, rebates, teimbw:sements,.,aediq; ·and payments of any
kind· due .&om or payable by any govemmental, authority or· other etitity for any
tmres, special .lll1tes, assessmen~ or similru: govemmenlli1 or quasi~govemmental

chatges oclevies imposed,uponDel>torwitllrespect to the anyperspnal property or
real property:now or hereafter owned or leased.by Debtoi: ~d with respect tO any
lll)Jlrovemen~ thereon orto any of the oi:her.collateral' described herein, or arising
out· of the satisfaction of .any condition ift!P,osed upon or the. ob~ g ,of any
approv.als for the development of any real •property now or hereafter owned or
4:ase4 by Debtor ot the improvements thereon;
(v)

.All supporting obligations with
,, respect.to any·otb.er. collateml; and

(vi} All replacem.ents, products aµd proceeds o~. and additions and
accessions.to,any of the fo~oin g; togethei:'wiih all books;rec:erds.and fileuelating
to any of'the foregoing.
.A]J terms used .herein which ·~· .µ,efined in the California Unifo!]n
(!I)
requires
Commercial Code ·shall have the. same meanings when used herein, unless the COl!text
otb,erwise.

Obliggtions Secured, '!'he obligatipns secured hereby ru:e the -payment and
2.
withQUt
perfumiance of (a),. all ptesent and futw:e Indebtedness of I;leptar to !:,ender, including,.
this·
.and
,Note
oxy
limitation, all .Indebtedness owing, due .and/or xequirec\ under the Ptomiss
kind
type,
Agreement and (b).all_presentl!lld futute.obligations ofDebtor to Lender oF every-other
n~
se·andi
ive'sen
rebeDS
stcomp
initsmo
dherein
"'js.use
orc:hru:acter. Thewcird ''IndebtedI!ess
and
type
every
of
ons
obligtti
aty
-monet
andnon
any and all advmces, debts, liabilities apdmonelllfy
r
kind of Debtor; or:any of them, heretofore, now or.hereaftel, mac¼, incurred or created, whethe
ent,
conting
Or
e
voluntaty or :involuntaty and however arising, whether ~· or ;not due, absolut
be liable
liquidateii or 'qilliquidated, determined ,or undetermined, 'and whether .Debtor may
R~ Scout(iy·Agn:cmml'll (I)

2

 ss may be or hereafter
individuallf or jointly, Qr whethei: =vei :y upon such Indebtedne
.

become

unenforceilble.

ce of all obligations
Termination. 'I'hisAgreementwill terniiaateupon:_thepe.rfo"!'•o
ss-of Debtor to
tedne
Indeb
t of.all
of Debtor to 1en·9er, 4,.duding-withoutlimitatioo, the·paymen
·
Lender existing-or ccimm.itteilby-Lendei: at"any time.

3.

lo~ -hereunder.
Obligations of Lender. Lender hllll no obligation to make any·
4.
nt of cpntingent liabilities secured
While Debtor is not in di;faulr,.Lendei: will, except to the amou
dei:'s option, all secw:ityin the fomi
hereby, either rel.ease or;apply to-any debtsecured hei:e'!iy, atLen
contingent liabilities may be
of cash or im:vocablc; bank aedit. A.ny_ i;ums withheld to secure
erwhich Debtor shall have no
deposited·at. Lendei:'s option in a non.Jnterest-bearing account,ov
the Account hei:eonder.
of
n
conttol, and the same shall, for all' pm:poses, be deemed a pottio
nts. to .Lendei: that:
}¼presentations and Wamnties. Debtor repr~sents and wami
5.
Debtor has the tight to llXCC$ and
(ii) Debtoi:is the ow_neund has possession of theCollateral; (b)
nnr, and to· othc;rwise perfoliil in
deliver this Agreement; to gri!nt, a secw:ity .interest in the .Acto
delivei:y nor perfonnsnce of this
accordance with this A.gteement; (c) neither the exeoitlop and
V"ene any agreement; document,.
Agreement by Boaower shall-violate, breach or otherwise contl:!l
t•to;,(d) l3on:ow'er has not sold,
insl:r\llllent,Jaws o~-regulaiion thatBoaoweris a patty to or subjec
any ofitll right, title or interest
conveyed,.assigned, pledged, hJ>Pothecated, or otherwise minsfetted
·Collateral is genuine, free f:rom
in the Collateral to- any person br entity other than Lender;, (e) .the
yment,·defenses and con\litions
lieos and other encumbrances, adv~e,cll!ims, setoffs, de(a1}li:, prepa
ereiil and,_ wltere applicable, in-any
precedent of any kind or charactet; (f) all sta~ ents coniajned.h
no nn-ancing- Statement COvei:iiig
0OCUIDej'JIS rP.Jated to the Account are !:P.]e and. complete; and (g)
n file in any public offic(:.
the CoUaternl, •od naming.any secured patcy-other than Lender,.is.o

..

6.

Covenants ofDebtor.

~ seemed
Debtor.agrees in.general: © to pay andpetfo!IIl the lpd ~b~
(a)
expenses
and
s
bilitie
! demands,;Iia
hereby when due; (Ii) tQ indemnify Leniler against all losses, claim~
ing
includ
ses,
all costs and expen
of every kind :qiused by pi:operty subject hereto; (Iii.) to pay
tion, preservation, ~aliza:tion,
;easbnable attomeys' fees, incurred by Lender in the perfec
nder; (rv~ to permit Lender to
enforcement and exercise of its i:igbts, powers and.remedies hereu
ents as ~de r deems necessary to
exercise :its powers;· and' (v) to execnte ar.ia deli~ such docum
hereby.
creati;.perfect and ·continue the secw:i.ty interests contempla~d
y, assign,
Debtor agrees with xegaid to the Ctillatexal: © not to sell, oonve
(b)
on the
lien
IIJlY
it
penn
st in, or
plt;dge, h-ypothecate, olf ,~themise tmnsfet .any right or intere
lly
genera
itb
keep, ih accordaq.cew
Collateml or any_p.ortion thereo~ except in favor ofLendet; (.i!)io·
to
and
S ~ g .the Collateral,
accepted ac:qmnting printjples, complete and acOJrate recot:Q
at any reasonable time; .(ili) not to
permit Le.,dei: to inspect the same .and make c9pies there of
nder, withotherptopetl¥•Otassets;.
cpmmlngle the proceeds of the Collater,tl, or collections thereu
e necessary to keep the Collateral
and·(~) to provide any service and do any other acts which ma:fb
and counterclafrns,
~ and clear of all def<:nSes, liens, ::ights of offset

RTangS<curil)' J(gm:monllJ (I)

 any
Powers.ofl'..ender. Debtor appoints.Lender.its.ttlle attomey in fact to perfatm
7.
of
until temunation this
of the followingpoweo;, which; are coupled with snintetest, are itr(lVOCable
and employees, or ill!,y of
.Agi:eementand may be exercised from time to iime•byLender'.s .Dflicers
of Debtor hereunder bi
'them, whei:hel: or not Debtor is in default: (a) to perfonn any obligation
~ten tl, to·enforcethe
Debtors name or.othei:wise; (b) t0 give notice ofLender's rights in the
seauity; (d) ,to resort to
S!lflle and make extension ~en ts with respect thereto; (c) to ~ e
secwicy agreements,
notes,
r
delive
·secw:ity in any order; (e) to prepare. ~lite , file, record or
$t!!lcments, tem:iination
.schedules, designatio11' siatements,. ·fin.ancing statements, continuation
n otlike papers.to perfect,
statements, statements ofsecmity ~ent, ,appl icatio ns for.registratio
ents for .the payment
preserve or release Lender's interest in the Collatetal; (f) to 1;ake cash, insttum
, execute, deliver and
ofmoney·and.othcr property towbichLendeds entitled; (g) to,prepare, adjust
nt of and end01'.5e,imy
.rccelve payment undet insurance claims, and to collect and receive payme
n:fun d or.rc111m, and to
instmmentin·payment ofloss orrelilmed;premiums or any other in~ce
d repayment :of the
apply. such amounts tCC!!ived J:iy Lender; at Lenders sole option, •fowar
s snd remedies which
Indebted a ess ot teplacement of.the Account; (h) to exercise allrlghts, power
l.subjecthereto; and (i) tD
Debtotwould hav.e, hutfo.t this.Agreen;ient,with.rcspectto the.Collatera
otherwise, dei:;med· by
or
r
Debto
g,o all acts and things .and exl!l;Ul:e·all documents in the name of
mition, perfediQll or
Lepder· ai neces ~,. R[oper and convenient in connection with the pi:ese
enfo,:cement 'lfits.i:ightB hereunder. .
to
Pa,vmrot of Prnroinms.'Taxes. Chatg§, Liens.and Assessments. Debtor agreest the
agains
~ents
asses
°d
pay; prior to delin qu~, all insurance premiums, taxes,,chatges, liens"
may J!ay any of t:herD; and
C911liternL <tnd upon the. failure of Debtor to do so, Lender a~i!S option
saty to ~char ge the
!;hall.be the sole judge of the legality ot validity thereofand the amou ntn~
and

8.

tor tD Lender, doe
same. Any such .payn;ients made by Lender shall be obligations ofDeb
lined in atcordance"With
payab!i; .immediately ~on demand, together with interest at a:rate detem
mbject.to .alt reans and
the·p1ovisions of Si;c;tion 1~ herein, md shall be secured by the C'.n11atersl,
conditionll of.this Agteement
t
Evenm o'fDefault. The occurrence ofany of ihe following shall constitute an "Even
.!).
shall
herein
t
Debto
by
of.Defiuilt" under this Agreement: (a)' any ~presentlltion or warranty m;ide:
o{)bsem:orpe.a0,1tD
llfuil.t
orsh,a
)Debt
ade;,(b
henro
.proyeto·beincouect:inanym,iterial.re~ectw
b.eliev~.any or ail of the
any obligation or agi:eem~t contsined hetein; (c) Lender, in,good Jitlth,
e qr desttuction, or
damag
C<illateral to bein dsnger ofmisuse, dissipation, ~gl ing , loss, theft,
other Default,under the
otherwise in jeopatdy·or unsatisfactory in cham ~ or V21ue; and (d) any
Promisso!J Note,or my other,I.gan_Documents,
right
Renwdiey Upon tile occum:nce·ofany Event ofDefaulr.Lciidersball have the·any
10.
~are
to
and
to declart> immecliately due and payable all: ot·any Indebr:ednes~ secured hereby ac~ti on,L ende r
such
cnrnrnitmetitll tD~· loan s or otherwise extend creditto-Debtor, Vpon
and the other Loan
ment
Agree
tltls
.under
tted
may, in addition to •all other remedies permi
msowingundertheLo:in
Documents and atlaw or equity, apply any.sumsintheAccountro the.sa
sements under the Loan
disbur
r.
Documents .and ·anr and .all obligations "of Lendei: to fund fui:the
and remedies granted to a
shall termina~e. Lender sh!ill have .all other rlghti;. powers, privileges
ot oth~ e provided
secw:ed partyt!pondefaultunder the California Uniform Commercial.Code
tive:. ~o,dclay, · ~
by1aw. Allrights,·powers, p.civ.ileges,.and remedies of Lender shall.be qimula
RTung ~ "-'"en! II (I)

 .()
remedy hereunder .shall
or disc ontin = of L'lQcler in =cis ing any right, power, privilege. or
any single orpattial
shall
affect or opepte as.a waiver of:sach right,.power, piiv.ilege or temedy; nor
r otlierw.i(l!l affect any other
exercise of any such tight, power, pi:wi!ege or remedy._precluiie,wiiive·o
ge or remedy. Any
or futther exercise thereof or the exercise of anr other right, power, privile der', ot any such .
hereun
t
de&ul
any
waiver, peruiit, consent or.approval of any kind by.Lender of
be effecti,ve oilly to the
waiver-of any provisions or conditions hereof, pmst be ill writing and shall
wer's tight to access the
~ent set fottb. in writing. While anyEvent of Default exists:· (a) B.o.cro
shall have no right to
Coll!lteral uniler Paragraph. 6Q>) above shall be temlina~ and BOttQwer
deliver the Collatetal,
aCC1$5 the Gollateral, and (b) at Lender's request, Debtor will assemble and place designated by
nient
and boolts and records pettainingthereto; .to Lender at a reasonably conve
agreed that public or
It.is
eral.
Colle,t
the
Lender and. thereafter; Debtor shall not have access to
or user of property of the.
p~te s~, for cl!Bh. or on ctedit, to· ii wholesaler or i : ~ or.investor,
able sincP. di~c es
types subject to thisAgreea,ient, orpnblic ~uction, are.all commercially reasoo rily offset by the
are ordina
in the sales ptlces· :genetally realized. in the diff= .fldn ds of. sales
differences in tlie costs .and credit ris)ts of such sales.
ess,
Di!;posltion of Collateral. Upon the ttansfer Cif'all or any part of the.Indebtedn all
~ 11.
from
rged thereafter
1£.!lder may.transfer all or,anypart ofthe Collateral, ~d shall be fully discha,.and
theaaosfereeshall
feired
liabilityandresponsibilli:ywithrespectto BllYOfthefq,regofugso~
of
t6 any the Joi:egoing.so·
.J:>e;vestecl:w.ith all rights and powers Cifl.enc;ler hereunder with.respect
etred,,Lendershall·tetain
!Iilnsfetred;.butwii:h respect to. any portion of the Collateral nouo ti:ansf
of any disposition of th~
all.tights, powers, privileges and remedies herein giv.en. Any proceeds
ofexpeoses incutred by
nt
CQJlatual. or any part thereof, may be applied by Lender to the payme
and the balance of
Lender in connection. with the foregoing, includipg reasonable attomeys'. fees, s in ·such order of
Indebtednes
such proceeds may b.e applied by Lender towatd the papnen~ of the
·
·
applicstio11 as Lender.:m_ay li:om time to time eleg:.
yupon
Costs, Expenses and Attom1$i' Fees; Debeer shall pay to Lenderiinmediatel.
12.
ses,inclnding~.easonaiile
demand the full amount of all p1!JDieots~ advances, charges, costs and expen
der'sinshousecoUDsel),
attomeys•· fees, to include outside r;ounsel fees and all allocated .costs ofLen
rtedbytbisAgtcement
ineutred by Lendetin exercising any right, power, privilege OJ: ~y confe
tbe: foregoing incntt ed in connection w;i.th any
OJ! in the enfoxcement theteof, including ·any of
~ including without
bankruptcy proceeding relating to D.ebtor or the vllluation of the C
or th~ negotialion and.
stay
c
top!l\ti
li¢itation, the seeking of relief from or modification of the-au
Lende r by Debtor-with
drafting of a cash AccOUDt' order.- All of the foregoing shall )ie paiil to
interest at a mte pet ll!l11WI\ equal to ten perceilt (10%).
or and
Miscellaneous. Presebtmeilt, :protest; notice of.protest,_ notice gf dishon
13.
d
entitle
is
r
~c;l.e
.
wbich
notice of nonpayment are waived with respect to any proceeds to
r
Pebto
of
s
!ndebtednes
herenndet;.~y rightto.pil:ect the apP,Jication of p'ayments-ofsecnrity fo:c
e proceedings against
here11Dder, or.indebtedness of cnstoID':fS of Debtor, and any right.to requu: ions, -fotbeamnces or
others or to reqnire,exhaustlon of secntlty arewaived;,and consent to extens ty, and the :release of
.alterations of the temis ,ofindebtedness, the release.or su~lltlltion of securi
pIQVided !1owever, that in
,guarantor.; is given with re;pect to Proceeds subject to this.Agreement; ~y.r
easo nab le in
each inslll!lce, Lender.believes.in.good falth that the action-in quesliQnis
tedness to whicli the
m.iit it does ,not unreasooably ina~ e the risk,of noupayroent of the Indeb
11,Tang S.curity Agrecmcot U-(1)

s

 have any .tight of
action.applies. Until alllndebtedness,shallhave been paid in full, no Debtor shall
participate .in
right.to
any
or
of
benefit
·subIQgation or contn'butioo, and Debtor hereby waives any
.
Lender
any, portion of the Collateral..~ any other secw:ity now or hereaftet: held by
Notices, .All notices or di;mands of any kind which elthcr of the patties hereto may
14.
ment shaij. be
Qe.requi.red okmay'desu:e to serve on the other patty in COJJ1lection.with this .Agtee
.served in the manner provided hr the Ptomissoi:y Note.
to be
15. Severnbilit,Y ofProyimnp~. Ifanyprovision-ofthisAgreement shall beheld~
.
~e
to
only
prohibited by or .invalid under applicable la\\', such provi5ion shall be ineffective
provision or any
,of _such pi:ohibition or imiiµidify, without .invalidanng the .ri;mainder of soch
temaining provisions of this Agreement
Governing Law;. Successors. Assigns. This :Agreement shall be governed qy and
16.
g upon andlnw:e
consttued .in accotdan,ce with the laws of the State of Califomia, and shall he bindin
ssors arid assigns of
to the-benefit of the hei,rs, exi;cut9rs; adminlsttators, legal representati.ves,.succe
·
the parties.

(Signatw:~ page fpllows)

R,Tllllg S,wrlly Agieemcnl·II (1).

6

 IN WITNESS WHEREOF, thisAgreeinenthas been duly executed as ofthedatefitst:.set
forth above.

''LENDER''
Name:
Robert Tang and/ ot V.trginia. Tsai

By:

Lender's Address:_

•.

7732 Oakshore Dr., Saaament? CA. 95831

"DEBTOR"
Twy Equipment Leasing I.LC

By:
Name:TJCox
Title: Managing.Member

Debtor's Address
'405 N. I Street
Mad=, Califo.t!lia 93637
Attention: TJ Cox

RToog Security Agrc:mcnl ll (I)

7.

 1 .....

I

I

'~ J t ''

'SECU RITY AGR EEM ENT II

4111c1ay ofMarch
.. THIS,SECtnm'Y AGREEMENT (this "Agreement',·is made as of this
d liability company
20t4; by and .between T~ Equipment Leasing Lli,C, a ,cliliforoia Jimite
Sac,wnento CA
Dr,
C'Deot<ir'_'), =d Robe;rt Tang and/01: V::.uginia Tsai located. at7732 Oakshore
95831 C'Lender'').

RECJ,TALS
h by and
~ S , pw:suant to that ccaain.pmmissru:y note of even date.herewit
A.
r in the
Debto
to
loan
a
g
betweenDebt ~ and Lender C'Pron.ussory :N!)te ll''), Lender .is makin
.
original face prlncipal amrnµit ofF'ifty·l'housand,Dollais (f50;000.00).
ed or
This .Agteement and the Pwlilissoxy Note., as 1hey may be modified, amend
• B.
the "1.oan
ively
suppkmen~d from time to time, will ·hereii:w.fter be, teferted to collect
~etforth
anio1r
the·me
e
~bav
sbalL
Documents". Capil)llized terms not othciwise aefineclhcrelii
in the Pi:omissoi:y Note.
r the i:epayment of the
~•. Debtor is. desirous of secw:ipg to Lende
C.
terms, CQVenants and
indebtedness evidenced 'tly the N.,ote· and the petfOllll!lfiCe. ·of the othet
agreements conl!lin!:d herein and in .the Loan Documents.

as

AGR!:IBMENT
and sufficiency of ,
NOWTHEREF,ORB, for good and-valuable con,deut;io'1, .the teccipt
agree as follows:
which .w:e Jiereby acknO\Vledged by Lender.and Debtot, Sllch parties heteby
t in ail
Grant of Sec;ru:icy: Interest. Debtor l!,ereby gtsnts to Lender a security .int=s
d,
locate
ver
w.here
ed,
acquii:
persopal property of Debtor, whether 1i9W owned or hercafu:i:
ing
follow
the
and u,nder
l!lclu_ding, without limitation,. all right, title and interest of Debtor in, to
, but ncitlimited .to,
erally
d1gen
on)o~
.loatted"on 01: :1:elatl4g to·the property and operatioD,S •th¢re
):
teral''
the-~ -0£M cDam e Cteek, British Columbia (collectiv!l,1.y,. the "Colla

.

(iii)
All© ~en t, inc.luding, withoutlimitafion, fixtw:es, (ii) mventoJ:y, and
(a)
-othei: goods, of any ilatw:e 'Whatsoever;
claims or
(b) ., All accounn;; i!llchattel papet;.allcommercialtottc:ll!ims and other
les, including, without
causes of·action; all:tltJEositacconnts;,all documents; all·genew,inlllngib
and asso!;iat:ed.goodwill. all
llinitation,.all ttade .s~ts . all ttademarim~ s~m aiks and trade
lpay~tintllngibles;,all
patents,allccipyrlghts,andallethei;.intellectualpwperty;allsoftware,andal
of Ciedit; all money; m:iil
insawnents; allmvesttnent ptop·erty; alliette.t of c.tedit .tighJ:S; all 1ettets

=,es

(c)

l'o.the extent not othei:wise desaibeiiabove:
(i)

All inimrarice policies arui water stock.·

and
All arcbi~ctw:al, sttattw:al, mechanicai and engineering plans
(ii)
rals
specifications prepared.fol: construction of improvements or.~c tion-o fmine

 .,,. .'

'

..._..,' I

Debtoi:. and all studies,
from any real propetty now ox hexeafter OV1.ned or leased by
and agteements of ih!!
ilata and dmwings telated .thereto; and. also all ,contracts
foregoing studies,
1)ebtotrelaiiog.to the fo;egomg plans and specifications or to.the or extxaction of
on
nts
data, and dtawings ox to the construction of improveme
owned or leasell, by
fter
herea
OI
now
tt;r
minerals Qt gtaVel from any _.real prope
Debtor;
deferred payments,
(ili} All :refimds,.rebates, reimbursements, ..reserves,
eatally-ri:gistered
emm
deposits, cost sav.ings, govemroeot~hubsidy·p.~yments,,gov
emissions reduction.
cre!lits, (BUCh as, by way of example and not as limitation, or
kinµ, due.from or
credits), other credits, waivers and paym~ts, whether in cash
any relafing tn
comp
utility
payable by any govemmen~ a.u1hority.orany 4isw:aru:e or
reafter owned orleased
any or allof,the personalptopeo;r or reaLproperfy now oxfu;
f;\illateral.descn"bed
by, Debtor. or to ?JJ.Y improvemeiits thereon or any of the other
sed upon or the
jrppo
itiblr.
herein or .~in g out of the satis'facrio11 of ,any c:o,ul
real propett;r now or
obtltini4g cif any approvals for tJie devclopment of tqe any
hereafter DW1led ~ DebtoJ:,or i:beimprovcments .thereon;
.of any
All refunds, .rebates, reimbursements, credits. anq payments
any
for
entity
other
or
kind due from oi::,payable by any govemrnentlll authority
nnµ
mme
-gove
mes, .special rm.es; asses61;llellts, 01: similar govemme.ntal or quasi l propetty or
the.anypersona
~~ oxlevle/;nnposed npon Deb toi:w ith~ ectto
'With.i:espect to any
real propeo;r now or 'hl:rc:ifter owned or leased by Debtor·and erein, ,or arising
bed.h
unproyements thereon or to ·!ID-y of the other colliitetal desai
the obtaining of :illy
.or
upon
sed
imp9
ition
out of the satisfaction of any cond
or hereafter. owned or
appro!31s for tli.e development of any real property now
.
lease!! by Debror or t h e . ~ t s thereon;
~:v)

·(v)

.All suppomng obligations with respect to any other collateral; and

additions and
(vi) All replacements, products ao.d pxoceeds of, and
ls.and files'telating
accessions to, any of the foregoing;·togetherwi:th. all books, recon
to any of the f~i ng.
,:nia Unlfoan
All teans used hei;ein which are defined in the Califo
(d)
herein, unless the context requites
Commercial Gode ~ have the same !ll,!laDllJgS when used
olhetw.is~

the payment and
Obljgations Secured: The, obligations sei::11.ted. hereby ~
ding, without
inclu
Debtor to Lender,
pei:formmce of:'{a) .ail ~en t and futute Irulebtedness of
and this
Note
nnde t the Pro.missoi:y
limitation, all lndebtedness owmg, due- and/or. reqµired
to.Lender of every oi:hertype, kind
.Agteement,and (b). all present'and.future obligations ofDe\:>tQI
its-most comprehensive s~e and.includes
cir chamcter. 'The wo,:,d "Indebtedness" isnsed herein in
mo11,etatyobligations,of every type and
any and all advances,, debts, liabilities ll!ld. mon~tru;y and noo:r ~ made,.incw:red or ~~ whether
kind of Debtor, or any of then:i, heretofqre, now o
at· not •due, 11bsolute or contingcn~
vollllltaty·or :involuntary and howev.er arising, whether due
.and whether Debtor ,may be liable
liquidated, or unliquidated, derermined. or 11 ndet=ioecl:,
· 2.

ltTengS=rity Ag,<omenill-CI)

2

 ss.may be·or hei:1:4fu:r become
indiyidually or jointly,.qt whether ret:OVe!:'f upon slich Indebtedne
unenfutceable.
ofa!Hibligations
TenniniJtion. This .Agreelile!ltW,11 terrnin~te upon theperfutman,-,,
3.
of Debtor to.
,ie&s
ebtea
all'Ind
eµtof
QfDebtor to Lende; incltidi!lgwjthoutlimitation, the,p,aym
Lender existing.or;committed by Lender at.any tioi,e.
make any loans'bereunder.
Qbllgations of Lender, !,ender has no obligatlqp. to
4.
0untof contingent liabilities secuxed·
While Debtor is not in default, I.ender. will, ex:~ t to the 111I1
dei:'s option, all secutltym the form
hereby, either.release or apply to any debt sec111:ed hei:eby, atl;en
secw:e contingent liabilities may be
of cash .or.irrev.ocalile .bank ctedit. hny sums withheld to
nt.over whi~ Debtor shall have·p.o
deposited aflender's option iii· a non~ilitecest bearing accou
on of.the Accooot hereundet.
contro~ and the sam e~ foi;.all putposes, be-deemed' a porti
nts to Lend.er that·
&presenta1fons and Wan:anties. Debtor .i:eptelients and wam right to execute and•
. 5.
the
bas
Debtor
(~) Debtor is the'(>wnei:md has·possession of.theCollatersl;· (b)
unt, and to otherwise perform ip.
Acco
the
in
est
intee
:ity
1,ieliver this_ Agreement, to grant .a seCllJ
cleliveJ:y nor· perfomiance of this
accordance "With this Agreement:; (c) neit)l.llt the executioo anp
cop.ttavene any .agreement, document,~ e n t · by Borrowet shall violate, breach. oN>themii!e
subject to;· (d) Bouower has not sold,
~e nt, laws onegulation thatEouowci:is a party ID or
sf~d any ofjts right, title <ircinll:l:est
,conveyed, assigned, pli!dged, hyplitheca~.or o!herwise tran
) the Collaterai is genuine, free 6:om
in the Gollatecil. to any person or entity oilier than !.en ~.(e
lt, prepayment, defenses _and conditions
b and other enc urn 'b~ adv~ e claims; setoffs, defau
herein and, where applicable, many
precedent.of any kinp-or cibarnctet; (f)'all statements contained
(g) .no finimcing·statement coveiing
doc ume nts~ to•theA.c:counf are,trqi:,and complete; and
r,.is en file in any public office. ·
the Collatetnl, and namin~ ~ny s~cured party other thanLeQ.de

·-

6.

Covenanti! 6fpebtor.

;lndebtedness secured
(a) . Debtor agrees 'in genera'(i ©to pay anl! petform the
; demands;liabililies and expenses
hereby when due; (Ii) to.in9emnify Leqde.r•against alllosses, CWl'l!S
~ costs and expenses, including
ef evety kind caused by property suhjc;11t .hereto; (iii) to pay
perfection, p:eservaqon, tealization,,
:e~onable atlDme~' fees, incuued by Eeruier 4!. ·the
and remedies hereunder; (iv) to pemiit.Lender•to•
enfoxcement and exercl$.e <;>fits.rights,
s as Lender:qeems.necessary to
exercise.its pawers; ,and (v) to.execute and deliver such document y.
h!l!Cb
cre a~, p~ and ~tin ue thesecurityinterests contemplated
y, ~ ; .
Debtor agi:ees with ~ d to the Collate:ml: ©not.to sell, conve on the
(b)
lien
~ in, o:c pei:11:14. my
pledge, hypothecate;, or ·otherwise transfer any light or to~.!?• inaccordancewithgenerall.y
Collateral orartypottion thereof, exceptin'f!lvorofLender; (Ii) ds :cegarding the .Ca lla~ and to·
accepted accolll!,ting principl.es, complete and accurate tecoi:
·at any J:easonable time; (iii) not to
pe.anit Lend et to 4!-sp~ die same: and ·make. copies thereof r, with other p:coperty oi; assets;.
unde
commingle thef:coceeds·of the Collateral, •or collections there
be .,ecessaty to keep the Collatetnl
·.may
which
and (iv) to prpv3de any·setvice and do,my othec acts
·
terclaims.
.free and cleai: of all.i;lefenses, liens,.rights of offset and c;oun

powets

3

 r·

u
I

Powers.of Lender. De!>tot appoints lende r its tr:l1e l!ttomey in fa~ to perform.any
. 7.
termioatioo·of this
of theJollowingpoWctS,- wbich·are coupledwith an interest, w:e ~evpcable until
ees, or any of
employ
and
s
officer
r's
Agreement and.may be;c;xercised from time.to time by Le!ide
herewider in
r
them, 'whether or not Debto r j.s in default: (a) to perfonn any obligation.of Debto enforce the
rlll, to
Debtor's.naroe or oth~ e; (b) to:give notic~ of Lender's-rights in·the Collate
y; (d) to reso.tt to
securit
release
to
(c),
;.
thereto
same and make extension, agreements with .tespect
y agreements,
securit
notes,
security in ~y ot_der; (e) to prep~re, execute, file, record ·or deliver
ents; termination
s~edciles, designiition Sf!ltemeots; financing ~tatements, continuation sta\i:m
.papers to •perfect.
statements, stl!fementti of security agreement, ap1:1licatiol!S:fouesi5ttation ot like
for. the payment
meots
"instcu
presetve or ;elease L~der 's intetestin the Collatetal; (f) to lllke cash,
, dclivet and
of money and other property to whicl),;L,eildei: is entitled;,(g) to prepare, adjµst, execute
and endotse any
rec~e payment under insurance claims, and to collect and receive peyment of
tnm, and to
d,or-.te
erefun
insu=c
other
instrumentin paymeotqfloss.orretumedpremiums or any
~'aym ent of the
apply .such l!DlOUOts i:eceived by Lc:ndei;; at Lender's sole option, toward
edies wbich
lndebtedn~· or replacement ofihe.A.ccount; (h) to exercise all ,rights, powers and-rem
thereto; and {i) to
Debtor would have, but for this Agreement, with respect to the.Ccillatectl sµbjec
ise, deemed by
otherw
do.all acts and ~ a n d ~ all.documents in the ~ of Debtor or
perfection or
Lender as n~at y, proper and convenient in ·conoection. wij:h. the p.resemttiop,
enfoi:cement ofits tights.h,,reumler

·s;

PnW,ient of ?remiums, Tuxes, Cbarg.es, tiens and .Assessments. Debtot a ~ to

ents against the
pay, prior to delinquenqy, all insurana;_premiui:ns, taxes; charg esi'~ and assessm
any of them and
Collafi:ll!,1, and npon·tne failure of Debtor to do so, Le!ider atit:s option may pay
ge the
shallbe the,sole judge the-legality or validity thereof and.the amowit necessary, to dischar
and
cine
;
Lende
to
r
Debt.o
of
ions
SIIJJle. Any such .paymentli made by Lender shall be obligat
itb
!n,l;e·w
payal;>J" irnroediaf<'.ly tipoli, demand, toget:Qer with intereSt at a.p.te determined ih.taccordJ
to all terms and
the provisions of Section 12.herein, and shall be secured by the .Collateral, snb,jec
conditions. of this Agreement.
Events pfDefault Theoccw:rence of anyofthefollpwing shall.constitntean"Eveot
9.
r herein shall
ofDefault" undertµis..Agreement _(a) any representation oJ:wattaotymade by Debto
e orperfoim
prove to beiD,cori:ect~ anymatetialrespectwhenmade; (b) D~btor sl?all-Jail to observ all of the
any.or
s,
believe
f:ili.h,
any obligation or agreement contained herein; (c} Lender, in· good
e ordestr.uction, or
Collateral to bein danger of-misuse, dissipation, cororoiugling,loss, theft. damag
efaultnndet the
otherwise in jeopard'.y'or ~filc toty in character·orvalu\i; and (cl) any othei:D
Pi:omissory N ote•or aµy· other Loan Documents..

or

10.

ht.
Remedies. Uponth1.:oa;w:renceofanyEvento.fPefiwlt.Lendershallhav.etherig
ate any

and fn t:emJiu
acceleration, Lender
such
Upon
or.
o.Debt
·creditt
,cororoitm"U!S to make!pans or oiherwise.enend
.the other Loan
and
ent
Agreem
roay, in addition to all other remedies rermitied under this
"uoilertheLoan
owin&
D<><;lllllfflts.and at law or.equity, applyanr sums in theAccount to the~
the ;Loan
under
Doc;uroents and any and all obligations of Lender .to fund ~ disbutsements granted to a
ges and.temedies
shall terminate. Lender shall have.all oilier .rigb,ts, powei:s, •prl:vile
Code or otherwise provided
ercial
Comm
i
~ect1ted party upon default under the Califomia Unifom
ative. No aCU!Y, failure
c:mnul
be
,s~
by law. All-lights, powers, prl;vileges, and remed ies:of! ;cnder

, to declaria iromeiliatclydue and.payable all or any Indebtedness seo,ired hei;eby

"llTangS..U~ A_,..nt ll. (I)

4

 or remedy hei:eunder shall
' or disCOJ1tinnaocr. of Lender in exercising any right, power, privilege
nor shall.any single or partial
affect or operate a,s a waiver of such tight, power, privilege or remedy;
oth ~e affect any other
or
exercise-of.any such right; power, privilege or xemedy pre<lll.lde, waive
ptlvilege. or remedy, Any
or P,ltther exercise thereof or the exercise of any other right; power,
t hereunder, or any such
waiver, peimit, consent or approval of any kind by Lender of any defaul
be.effective only to the
waiver of anyprovisions or. condition~ hereof, must bein writing and shall
tight to access the
wers
·extent set-forth in writing; While any Event of Default exists: (a) Borro shall )lave no right to
wer
Collateral under Paragraph 6(b) above shall be teaninated md Borro
and deliver the Collatetal,
ble
assem
r-wfil
access the Collateral, and (b) at Lenders request, bebto
nientplace designated by
conve
and books and tecords pertaining ther~~. tr;> Lender at ueasonably
.. It is agreed. that public or
Lenqer and thereafter, Debtor shall not·have access to the·Collateralor,
or user ofproperty of the .
private sales, for cash or on aedit, to a wholesaler ouetl!iler or iil.vest
able since differences
types subject to th.is Agreement, or public auction, are all commercially i:eason
ordinnril.y .offset by the
in the sales pcices generally re,ilized in the different kinds of sales are
differences in the costs .and aedit tisks of such sales.
edness,
Pispositloo of Collateral, Upon the transfer of all or.my part of.the Indebt
all
from
ftct
th~l!
rgr.d
discba
y
Lender m:i.y transfer all or.any pact-of the Collateral and shall be.full
shall
ree
~sfe
the
cred, and
liability and respo~ility'Yith teSpect'to any of the foregoiog so transfo
to any ofthe foregoing so
t
respec
with
der
hereun
r
be vested with. all rights and powers of Lende
ci:red, Lender shall retain
ttansfetced; but with respect to,anyportion of the Ccllatecal not.so t:caosf
of any disposition of the
.all.rights, powers, p ~ and i:emedies herein given. Any i_:)roce~.
enses incuued by
. Coll a~, or any part thereof; may.be applied by Lender to the,payment of.expand the ,balance of
Lendedn connection with the foregoing, including reasonable attomeys' fees,
ednes~ in such order of
such.proceeds may be applied by Lender toward the payment.of the Indebt
application as Lender may from time to time elect
11.

upon
Cnsts, Expenses and Attomeys' Fees. Debtor shall pay to Lender immediately
12.
able
reason
ing
includ
ses,
expen
and
costs
cj.emaod the full amount of all payments, advances. charges,
l),
couose
se
li-bou
dec's·i
ai;tomeys' fees, to include outside.counsel fees and all allocated: costs ofLeo
ment.
Agree
/:ed by this
incurted by Lender in ~ g any.tight;•pdwer,.prlvilege enemedy confu
connection with any
in
ed
incw:c
ing
forego
or in the enforcem¢t thereo.t; inclu ~g any of the
including -without
eral,
Collat
-bankruptcy pxoceediog .telating to Debtor or the valuation of the
stay or-the negotiation and
limitation, the.seeking of relief from or modification of the automatic
r with
drafting of a cash Account order. All of the fpregoiog sh\lll be paid to Lender by Debto
inteiest at a mte pee !H)llum equal to ten perceat (10%).
or and
Miscellaneous. P.i:esenfment, I?Wtest, notice• of protest, notice of dishon
13.
which Lender is entitled
notice of nonp ay~t are waived wit:4 respect, to any p_roceeds .to lndebteliness of Debtor,
hec~d ec; any rlgfit'to direct the application of payment_S •cif' security for
e proceedings against
hereunder, or indebtedness of customers ofDebtot, and any tight to requir
ions, forbearances or.
extens
to
others or to require exhaustion of security are'waived; and consent
security, and the release of
alterations of the tcrtn5 of Inde)ltedness, the release or substitution of
m:ent; provided however, that in
guarantors is given with respeq: to Proceeds subject to this Agcee
coi:nmerciall.y.reasonablein
each instance,Lendec believes 'in good faith that the action in question is
tedness to which the
Indeb
the
i:hat it does not unreasonably increase the risk of nonpayment of
llTang Sr:curity Ag,ccmenl n (I)

s

 V
right of
action applies. Until all Indeotedness sball have been paid in full,no Debtor shall !lave any
icipatdn
to_part
!ight
any
or
of
subrogation.or..coninoution, and De!btor here~ywaives any benefit
any portion of the Collat:eral.or,any othet secw:ity now-or !leteaftet held by Lendei:,

Notlces. Ali.notices or qemands of any kind which either.of the parties bei:eto may
14,
shall be
be requitCQ. pr may dem to serve on the otberpatty in coooection with this Agrei:ment
Note.
served.in the manner.provided in the Promispory

Severabilicy of Proyisjons, If any provision of this· Agreement shall be held .to be
extent
prohibited by or.invalid under applicable1~w, such provision ~be ineffective pJ:Jly t0 theor
o. any
15.

of sµc,:h _prohibition o! invalidity, 'Vlithout invalidating the .reuiaioder of sueh provi&iQ
.remaining.provisions of diis Agreement. ·

and
Goye,;ning_Itaw; Sncce••ors. Assigp.s. This A~e nt shall be govemed byinure
16.
and
upon
construed in aC!=(lrdance-witb. the laws ofthe State of California, 011d shallbeliinding
ors and l!Ssigos of
to,tbe benefit of the heirs, ~ecutof§, a~stta tors, legal:represenlliti.~, success
the parties.
(Signaturepage follow,;)

RJ'ml&Scooril)' Agn:ancntJHI)

·6

 INWITMijSS WHEREOF, this Agreement has been dulyexecated as ofthedatefirstset
fortl:i above. ·

Name:
Robet tTattg and/o ;V~Ts ai

By:

Lender's Add,,.,.s,

7732 Oakshoxe Dx.,.Saci:amento CA 95831

"D.HB'I'Olt''

T,xoy Equ1p,::gcnt Leasing LLC

By:
Name: 'lJ Cox;
Title: Managing Member

bebtot's Address
405 N.I Street
Madeta, Califotoia 93637
Attention: 'l:J Cox

..

.1tTm1g'Scalrily Ag,oom"1111. (I)

7

 .- ·,)

L J
.,-r~

'---·

EXH'IBIT A
EQUIP·MENT LIST
Tro y Equ ip'm .ent Lea sing L.LC

4,,0:5 NI St,, 'Ma dera , CA 93,6 37

.1

Make
Rack &JS!ems
Hllathl

1
·1

lfflachl

Quantity

1

Hllac!ii

1
1
1
1

Hllachl

1

Terex
Terex

Terex
Terex
Tereit

1
1
1

:peeiJess Page
Cornell
ICen'/,¢h
Allee Chalmers

1

1
1
1
1

Mulilq\!lp

1
1
1

Terex
•Gardner Dell'/er

1
1
I

Terax
TFruebaf

2

n/a
n/a

l:lncoln

~u

CsnyOn

1
2
1
2
1•
'1

Af(IJ

n/a
nla
Ria

Al!afab
"

Model
52' x24"·Wash!ngf&:reen Plilnl
!.!004 2X4SDLC =m!D r
20Qj EX450LC5 Excavator
1996 l;X400LC31;X!:avalar
{995'Ufl601 Elccavalor
3807 65,!on RockTIIICk
aaoe 6?-!0n Reck Truck
3309 65'.ton•Rock Truck
72-61 Front End loaJler
90C'Fronl End Loadar
1980 38' Ojll!eld,!'loal
2008 ij X8Pump
.(:;500,6 X6semi
125 KW Generalor
2007·Mu!ttquip 36KW Generalor
'
SA260 lllesel Welder
2007 5RB E!,l16"1 Pump
AIADOO Ugh! Tower
325 Air Cmnpressor
2007 24' 5Ui Will equip Tlliler
CB Crawler Traclor
ll600 C_lll'(IJerTratlor
45''VenTreller
40' Tool T~er
48' Too!'Traller
10' X40' Camp Trailer
210 Barrel Fuel Tank
100 eairel Fuel Tank
5000 gallon Foal Tank
1994'4x 12'x64'Camp
2J:x35
12·x24·tkes
Rack ln!ck tJres

.

TAaG#

DCMOl001
DCM01035
DCMD'!036
DCM0102ll ,
DCMOl002
DCM01025
DCM01003
OCM01004
DCM01040
DC!.101041
DCMOl007
DCM01042
DCM01043
DCM01018
·DCM01016
,DCM01005
DCM01028
DCMOI039
DCMQI037
DCMOlD06
ocM01044
DCM01045
DCM01046.
DCM01047
DCM011)\8
DCM01049
DCM010500CM01051
DCM01052·
DCMOI053

'il'a
Ria
Ria

serial Number(s)
.407~.
16JODPC0010765
16CP.006360

nla
186
7)866

86141
66134
nla
15245582

nia
nla
nla
670
7203971

Ilia
154041
6VF2699(),·
W24870

Ria
40067
PC82872584
DXZ883002

n/a

Ill•
n/a
~la
nla
nts
RB304

rila
n/a
n/a

5

Yokohama
G!)adyear
Terex

1

Terex

Terex33D7 D 451'.an Rad<Truck

.lJCMD!OS4

T410~8

1

Terex

Terex33117'0'45Ton Rack Truck

DCMD!D55,

f1H41045

5
6

 EXHIBIT 

GUARANTY AGREEMENT
TffiS GUARA:NTY AGREEMENT C\'\.greeinent" aµd/or· "Guaranty"), effective as of
September 1, 20i9; is rriade by and between Terrance John Cox ("Guarantor") in favor of
Edw:arci Tang, RobertTang and. Virginia Tang ( cdllectively. referred to herein.as "Creditors" and
individually as ''Cl·editor''}. Guarantor-and Creditors are also· qollectively referred to herein as
"Parties'' and j.rtilividually as a ''.Party."

RECITALS
This Agreement,is made with reference to the following facts,·and objectives:
A.
Troy Equipment Leasing, LLC, a <;:alifornia limited liability company, has
executed"thefollowing Promissory Notes:
•· Prciniissory Note dated October 21, 2013 in the .principal amount of $50;000,00
irrJavor .of Edward. Tang, a. copy of which is ·&ttached hereto, marked Exhibit A
and ful!y'incorporated' byrefen,nce herein;•

Prorni~sory Note dated October· 24, 2013 in the .principal ahlount of $5Q;Q00,00
in favor -of Robert Tang and Virginia Tsai, a copy of whicl;l is attached hereto,
-marked ExhibitB and fully incorporated by reference herein; and

•

Ptmriissory Note dated March 4, 2014 in the principal amoµnt of$50,000.00 in
favor q:f 'Reibert :rang and Virginia Tsai, a copy of which is attached hereto,
marked Exhibit C l\lld fully incorporated by reference herein.

B.
Guarantor .executed each. of ·the above referenced Promissory Notes as the
managing·member of Troy Equipment Leasing, LLC.
C.
Guarantor has agreed: to personaUy guarantee the obligations of Troy Equipment
Leasing, LLC under and pursuanHo. te~ch of the above referenced Promissory Notes,
D.
.Creditors have .agreed to forbear enforcement of each of the Promissory Notes
until-October 31, 2019.
NOW, THEREFORE, in .consideration of the. mutual covenants, conditions and prpmises
contained in. 'this .Agreement and for other good and valuable consideration, the receipt and
sufficiency of which .is hereby ackhowlcdgcd, the Parties agree as•follows:

AGREEMENT
1.
Guarantee. ·Guarantor hereby absolutely and. unconditionally guarantees the
payment, in full, ofthe principal sum of. each- of the above referenced,Promissory Notes dated
October 21, 2013, October 24, 2013 and'March 4,.2014, together with all attorneys' fees and.
expenses incurred by Creditors in the collect_ion,of eacfrof said Promissory Notes. ·
1

 2.
Forbearance of Enforcement.
Creditors agree to forbear enforcement and
collection of each of tlie above referenced. Promissory Notes until October 31, 20i9. Should
Troy Equipment Leasing, LLC fail to pay on or before October 31, 2019, all sums due under the
terms of each of !,he above .referenced Promissory Notes held by each Creditor, Guarantor agrees
to pay 011 demand all sums due or to become due under each of the above referenced Promissory
Notes as well as all attorneys' fees and .. expenses incurred by Creditors in .the enforcement and
collection of said Promissory Notes.
The obligations hereunder are unconditional and
3.
Waiver of Defenses.
i:ndependent of the obligations of Troy Equipment Leasing, LLC, and a separate action or actions
may be brought and.prosecuted against Guarantor, whether- such action is brought against Troy
Equipment Leasing, LLC or whether Troy Equipment Leasing, LLC is joined .in any such action
or actions. Guarantor hereby waives and relinquishes aU rights and remedi.es accorded by
applicl!ble law to Gu!!tl!Iltc;ir, including but not limited to, the rights and defenses described in
California Civil Code sections. 2809, 2810, 2819, 2839, 2845, 2849, 2850, 2855 and 2856, and
agrees not to assert or take advantage ofany·such rights or remedies, including without limitation
(a) any right to require Creditors to proceed against Troy Equipment Leasing, LLC or any other
person; (b) any right to require Creditors to proceed. against. or· exhaust any security held by
Creditors at any time or to pursue any o:ther remedy in Creditors' power before proceeding
agaiµst Guarantor; (c) any defense based 011 any sta!,Ute of limitations or other argument that an
action to enforce the above referenced Promissory Notes is time barred; (d) any defense based
upon any statute of rule of law which provides that the obligation of a surety must be neither in
amount nor in other respects more burdensome than that ofthe ,principal; and. (e) any ,duty on the
part of Creditors to disclose to Guarantor any ·facts Creditori, may now or hereafter .know about
Troy Equipmt;nt Leasing, LLC, regardless of whether Creditors have reason to believe that any
such facts materially increase the risk beyond that which Guarantor intends to assume or has
reason to believe that such facts are lll!known to Guarantor or has a ,reasonable opportunity to
communicate such facts to Guarantor, because Guarantor acknowledges that he is fully
responsible for being and keeping informed of the financial c:ondition of Troy Equipment
Leasing, LLC and of all circumstances bearing on the risk of non-payment of any obligations
hereby guaranteed. Guarantor waives all demands for performance, notices or non-performance,
protests, and notices of protest.
4.
Successors and Assigns. This Guaranty shall inure to the benefit of Creditors,
their successors and assigns, and shall bind the heirs, executors, administrators, personal
representatives, successors and assigns of Guarantor. This Guaranty may without notice be
assigned by Creditors and, when so assigned, Guarantor shall be liable to the.assignees under this
Glll\fanty without in ;m:y manner affecting the. liabiiity of Guarantor hereunder.
5.
Attorneys' Fees. TI1e prevailing party in any litigation arising;.from or relating to
this Guaranty, or in connection with the enforcement of this Guaranty,, shaJJ1 be entitled to
recover its reasonable attorneys' fees and costs ·incurred herein. ·
6.
Notices. Any notice, demand; request or other communication with respect to·this
Guaranty which Guarantor or Crepitors may desire to give or serve shall be in writing, .be
registered or certified mail, postage prepaid, return receipt requeste·d, by facsimile or by personal
service• (including express or courier service} and adcfressed as follows:
2

 To Creditors:·

Edward Tang; Robert Tang, and Virgii).ia Tsai
Attention: Louis J. Anapolszy
Knox,.Lemmon & Anapolsky, tLP
2339 Goid l\foadow Way, Ste. 205
Gold Rivet, CA 95610

To Guarantor:

Terrance John,Cox
Atterition·:David Weiland
Coleman &JforoWitt, LLP
499 W. Shaw
Avenue,
Ste.
U6'
'-··.
'
.
Fresno,. CA .Q3704
.

'.

7.

C01itiniling Guaranty. Guarantor acknowiedges that this is a cotititiuing guaranty
agreement and that. Gtiarahtot promises to guarantee payment under ·each alid every renewal or
extension of the loan.(s) under each and evezy renewal, modification or extension of the above
referei;i.ced Promissory Notes. Gµarap.tor authorizes Creditors, Without notice or demand; from
time.• to time, to renew, compromise, extend, accelerate or .otherwise change the terms for
payment under :the above referenced Promissory Notes ,as Creditors deem.advisable;Without in
any way or re·spect, 'impairing, affecting, )'.educing or releasing Guarantor f'or his undertakings
here)lllder and Gµaratifor hereby consents to each and a:.U of the foregoing acts, events and/or
occurrences..
8.

Miscellaneous.

(a)
This Guaranty sl;tal) be governed.by a11d,construe_d in accordance With the
laws of the 'State of <::::alifoniia applicable• to contracts -made- ,andc performed in such state.
Guarantor hereby consents to tfie jurisdiction of any competent court within the State of
California and ,consent to service of·process by any means authorized ,by Califoniia law in any
action brought un:der or arising ouf of this Guaranty.
'·
(b}
Except as provided in any other written, agreement now or at any time
hereafter' in- .force between Creditors and Guarantor, tliis Guaranty shall constitute. the entire
agreement of Qllararitor with Creditors with respect to the subject matter hereof and no
nmresentation, undetstan.ding, prpmise,or condition concerning the s'llbject matter h!:,teof shall be
binding up9n Creditors µnless expressed herein.
(c)
No provision of-this Guaranty or right granted to Creditors hereunder can
be waived in whole or in part nor cai1 Guarantor. be released from Guarantor's oli1igations
hereunder, except by a writing d1.1ly executed by the Creditors ..
(d)
Creditors need notinquire into the, power ·ofGuarantor or his authority in
entering iiitci thfs Guaranty.

3

 , .

(e)
The.heaclings of this Guaranty are inserted for convenience only and.shali
have no effect'upon the"construction or futerpretation hereof.
(f)
.If any provision of this Guaranty is held to be invalid by a court of
competent jurisdiction, the remainder of this Guaranty shall not be affected thereby and shall
continue.in full.force and effect.

IN WI1NESS 'Wf.lEREOF, Guarantor has executed this Guaranty as of tht': date first
above written.

Guarantor:·

/

4

 EXHIBIT 

GUARANTY AGREEMENT
THIS GUARANTY AGREEMENT ("Agreement'' and/or "Guaranty''), effective as of
September 1, 2019, is'made by and betweencKathleen Murphy ("Guarantor") in favor ofEdward
Tang, Robert Tang ,and Virginia Tang (collectively referred to herein as "Creditors" and
indi✓idually as "Creditor"). Guarantor and Creditors ,are also. collectively referred to herein as
"Parties" and individually as a "Party;''

RECITALS
This Agreementis made with reference to the following facts and obJectives:
A.
Troy Equipment Leasing; LLC, a California limited liability company, has
executed the following Promissory Notes:
e

Promissory Note dated October 21, 2013 in the principal amoU11t of $50,000.00
in favor of Edward Tang, a copy of which is attached hereto, marked Exhibit A
and fully incorporated by reference herein;

•

Promissory N.ote dated October 24, 2013 in the principal amount of $50,000.00
in favor •Of Robert Tang and Virginia Tsai, a copy of which is. attached hereto,
marked Exhibit B and fully incorporated by reference herein; and

o

Promissory Note dated March 4, 2014 in the principal amount of $50;000.00 in
favor of Robert Tang and Virginia Tsai, a copy of which is attached hereto,
marked Exhibit C and fully incorporated by reference herein.

B.
Terrence John Cox executed each of the above ,referenced Promissory Notes as
the managing member of Troy Equipment Leasing, LLC.
C.
Guarantor has agreed to personally guarantee the obligations of Troy Equipment
Leasing, LLC under and pursuant to each of the above referern;ed Promissory Notes.
D.
Creditors have agreed to forbear .enforcement of each of the Promissory Notes
until October 31, 2019.
NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises
contained in this Agreement and for .other good and valuable consideration, the .receipt and
sufficiency of which is hereby acknowledged, the.Parties agree as follows:

~GREEMEN'T
Guarantee. Guarantor hereby absolutely and U11conditionally guarantees the
payment, in full, of the principal sum of each of the above referenced Promissory Notes dated
October 21, 2013, October 24, 2013 and March 4, 2014, together with all attorneys' fees and
expenses incurred by Creditors in the collection of each of said Promissory Notes.
1.

1

 2.
Forbearance of. Enforcement,
Creditors agree to .forbeat enforcement and
.collection of each of die above referenced Promissory Notes until October 31, 2019. Should
Ti-oy Equipment Leasfug, LLC fail to pay on orbefore Octob.er 31, 2019, all sums due under the
tenns,of"each of the.a!}ove reference\! Prorµissory Notes held by each,Creditor, Guarantor agrees
to pay on demand all ·s:ums !lue or to be9orµe,due under each ofthe·above referenced ·Promissory
Notes as well as all attorneys' fees and expenses incurred by Creditors in·the enforcement and
collection of said• Promissory.Notes.
3.
Waiver. the obligations b,ereuncfor are uncongiiional and mdepeµdent of the
obl\gations of Troy Eqµipment Leasing; 1LC, anc,I a-separate action or actions may be brought
and prosecuted against Guarantor, whether such- action is brought against Tfoy Equipment
Leasing,.LLC or whether: Troy Equipment Leasing, LLC is joined in.•any $1.ich,acfion.or:actions,
Guarantor hereby Waives:and.relinquishes. all rights artrl wmedies accorded by applicable law to
Guatantor, including bµt not limited to, the rights and defenses described in California Civil
Code .sections 2809, .2810, 2819, 28~9, 2845,. 2849, 28~0, 2855 and 2856, and agrees not to
assert or take advantage of any such rights or remedies, including without limitation (a) any right
to require· Creditors to proceed against Troy Equipment Leasing, LLC ot any other person; (b)
any right to require .Creditors to,proceed against or ·exhaust any security held by •Creditors at any
time.or to pursue any other re111edy in Creditors' power before proceeding·again~t;Guarantor; (c)
any defense based on l\lJ.Y sfl\tute of limif!\fioi:is. or other argument that an action to enforce the.
abovereferenced1'romissory Notes is tirneibarred;•(d),any defense based upon any statute or mle
•of law which provides that the· obligation of a surety must be neither in .amount nor in other
respects,mote burdensome tha.n tha.tofthe principal; ,and (e) any auiy .on the p!!rt of Creditors to
disclose to Guarantol'. @.Y facts Creditors may now or hereafter know about Troy Equipment
LeB;sing, ·LLC, regardless of whether Creditors .have reason to believe that any such facts
maferfally increase the .risk ·.beyond that which Guarantor intends to !ISSµme or has reason to
believe tha.t such facts are unknown .to Guarantor or has a. reasonable opportunity to
. communicate such. facts to Guarantor, because Guara.ntor acknowledges that he is fully
respo11sible for being lll1Q keepi!lg inform.~d of the finapcj~l condition of Troy Equipment
I:easing, LLQ and .of !!11 circumstances b~aring on. the risk of-nonapayment of any obligations
hereby guaranteed'. Guarantor waives •all demands for-perforfuatice, notices bi non°performance,
protests, and notices,of protest.
4,
Successors and Assigns, T!ii~ Guaranty shall inim: to the benefit of Creditors,
tjieir· successors· ·~d · ruisiglls, ana · sha.11 bind the heirs, executors, administrators, persona.I
representatives, successors and assigns of Guarantor. This Guaranty may without notice• be
assigned by Creditors and, when so assigtie'd, Guarantor shall be liable to the assignees. under .this
Guaranty \\Tithout in any manner affecting.the liability of Guarantor hereunder,

5..
Attorneys' Fees. The prevailing party in ·any litigation arising from or relating to
this Guaranty, or in cortnection 'with the enforcement of this Guaranty,, shall be entitled to
recover its reasonable attorneys' fees and qosts incurred herein.
6.
Notices.. MY no.tice, demand, request or other communication with respect to this,
Gljllr!Ulty which Guarantor or Creditors may desire to giv:e ..or serve shall be in writing, be
registered or.certified.mail, postage prepaid, return receipt requested, by facsimile ·or. by personal
service (including.express orcoutier service) and addressed.as.follows:
,·

2

 To Credjfors:

Edward Tang',.Robert Tang arid Virgini:_iTsai
Attention:. LouisJ. Anapolsky
Knox; Lemmon & Anapolsky, LLP
2339·GoltlMeadowWay, Ste: 205
GoldRivet,CA .95670

To Guar.:mtor:

Kathleen Mll!'PhY,
Attention: David Weiland
Coleman & Horowitt,LLP
499 W. Sliaw Avenue,Ste. U6
Eresno, CA 93704

7.
Continuing Guaranty. Guarantor acknowledges that tiiis,is .a continuing guaranty
agreement and thaLGuarantor promises to guarantee payment tinder each and every renewal or
ex.fension of tile loan(s) uildet each and every renewal, .modification or extensio:n,pr the above
referel).ced Ptomissory'~otes. Gttarantor aµthorizes Creditors, without l).otice or demand, frol}l
time to. time, to renew, compromise, extend, accelerate or otherwise change the terms for
p:_iyment under the,above referenced Promissory Notes:as Credifors deem advisable, without in
any ,way or respect,. iinpaiting, affecting, reducing or releasing Guarantor for her undertakings
hereunder and Guarantor hereby consents to each and all of the foregoing acts, events and/or
occur;e11ces.
8.

Miscellaneous.

this Guaranty·shall be governed by .and const:t:ued in accordan~ with the
.(aj
faws of the State of California· applicable to contracts m11de and performed in such. state.
Guarantor hereby consents to the juriscjiction of any competent court within the ·State of
Caiifomia and· consent to service of process by .any mea:ns authorized by California· law 'in a:ny
actiOnbtought under <it arising out.ofthis Guaranty ..
(b)
Except as provided ill any other \\lri!t_en ·f!~ement now or at any tjme
hereafter in, force between Creditors and Guarantor, tbis Guaranty shall constitute· the entire
agre'enient , of Guarantor with Crei:litots with respect to the subject matter .hereof a:nd no
representatjon, .uhderstahding, j:lrOinise or condition concerning the subject matter hereof shall be
binding upon Creditors .u:nles~ expressed herein,
No provision.of this Guaranty or right granted to Creditors,.hereunder _can
(c)
be waived in whole ·or in part nor ca:n Guarantor be released frOm Guarantot's obligations
hereunder, except by a writing·duly, executed by the Creditors, ·
(d)
C~di,tors·need not,inquire into the power of Guarantor or her'authority in
entering into this Guaranty,

3

 (e)
The headings of this Guaranty are inserted for convenience only and shall
have no effect upon the "construction or interpretation hereor:
(f} . If any provision of this Guaranty is held to be invalid by a court of
competent jurisdiction, the remainder of this Guaranty shall not be .affected thereby and shall
continue in full force and effect.

IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first
above written.
Guarantor:

Kathleen Murphy

4