NUVELO INC
EXHIBIT 10.43
<DOCUMENT>
<TYPE>EX-10.43
<SEQUENCE>3
<FILENAME>f88137exv10w43.htm
<DESCRIPTION>EXHIBIT 10.43
<TEXT>
<HTML>
<HEAD>
<TITLE>Nuvelo, Inc. Form 10-K  12/31/02</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="right"><FONT size="2"><B>Exhibit&nbsp;10.43</B>
</FONT>

<P align="right"><FONT size="2"><B>&nbsp;</B>
</FONT>

<P align="center"><FONT size="2"><B>GUARANTY</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS GUARANTY (&#147;Guaranty&#148;) is made as of October&nbsp;1, 2002 by George
Rathmann, an individual (&#147;Guarantor&#148;), in favor of AMB PROPERTY, L.P., a
Delaware limited partnership (&#147;Seller&#148;).
</FONT>
<P align="center"><FONT size="2"><B>RECITALS</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller, as landlord, and Hyseq, Inc., a Nevada corporation (&#147;Buyer&#148;),
as tenant, are parties to that certain lease dated as of June&nbsp;23, 2000 (the
&#147;Original Lease&#148;), which Original Lease has been previously amended by that
certain First Amendment to Lease Agreement dated December&nbsp;14, 2000
(collectively, the &#147;Lease&#148;) relating to certain real property and improvements
located at 225, 249 and 257 Humboldt Court, Sunnyvale, California (the
&#147;Property&#148;), all as more particularly described in the Lease.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to that certain Termination Agreement dated as of October&nbsp;1,
2002 by and among Buyer, Seller and Guarantor (the &#147;Termination Agreement&#148;),
Seller has agreed to terminate the Lease.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the terms of that certain Real Property Option and Sale
Agreement and Joint Escrow Instructions dated as of October&nbsp;1, 2002 by and
between Buyer and Seller (&#147;Option Agreement&#148;), Seller has agreed to afford
Buyer an option (&#147;Option&#148;) to purchase the Property upon the terms and
conditions set forth in the Option Agreement. Initially capitalized terms not
otherwise defined herein shall have the meaning given to them in the Option
Agreement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Option Agreement, Buyer has executed or will execute in
favor of Seller a promissory note (&#147;Note&#148;) in the principal amount of Two
Million Six Hundred Thousand Dollars ($2,600,000). The Note, the Option
Agreement, and the Termination Agreement are collectively referred to herein as
the &#147;Transaction Documents&#148;.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THEREFORE, to induce Seller to afford the Option to Buyer and to enter
into the Transaction Documents, and in consideration thereof, Guarantor
unconditionally guarantees and agrees as follows:
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="2%" align="left" nowrap><FONT size="2"><B>1.</B></FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="90%"><FONT size="2"><B>GUARANTY</B>.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. Guarantor hereby guarantees and promises to pay to Seller or order,
on demand, in lawful money of the United States, in immediately available
funds, the principal amount of the Note, together with all accrued interest,
fees and charges on the entire principal amount of the Note.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2. In addition to Guarantor&#146;s obligations under Section&nbsp;1.1 above,
Guarantor hereby guarantees and promises to pay (a)&nbsp;any avoidance by Buyer,
Buyer&#146;s successor or Buyer&#146;s creditors of all or any part of the sum of
$3,100,000, which amount represents a portion of the termination fee heretofore
paid to Seller pursuant to the Termination Agreement, or the recovery of any
portion of such termination fee directly or indirectly from Seller as a
preference, fraudulent transfer or otherwise under the Bankruptcy Code or other
similar laws and (b)&nbsp;all legal costs and expenses incurred by Seller as a
result of the occurrence of any of the events described
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P><FONT size="2"> in clause (a)&nbsp;above; provided that Guarantor&#146;s liability under this
Section&nbsp;1.2 shall terminate as of February&nbsp;3, 2003.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3. The obligations of Buyer to Seller described in Sections&nbsp;1.1 and 1.2
are sometimes collectively referred to herein as the &#147;Obligations.&#148;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REMEDIES</B>. If Guarantor fails to promptly perform its obligations under
this Guaranty, Seller may from time to time, and without first requiring
performance by Buyer, bring any action at law or in equity or both to compel
Guarantor to perform its obligations hereunder, and to collect in any such
action compensation for all loss, cost, damage, injury and expense sustained or
incurred by Seller as a direct or indirect consequence of the failure of
Guarantor to perform its obligations together with interest thereon at the
default rate of interest applicable to the principal balance of the Note, as
specified therein.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RIGHTS OF LENDER</B>. Guarantor authorizes Seller, without giving notice
to Guarantor or obtaining Guarantor&#146;s consent and without affecting the
liability of Guarantor, from time to time to: (a)&nbsp;declare all sums owing to
Seller under the Note due and payable upon the occurrence of an Event of
Default (as defined in the Note); (b)&nbsp;take and hold security for the
performance of Buyer&#146;s obligations under the Note or the other Transaction
Documents and exchange, enforce, waive and release any such security; (c)&nbsp;make
extensions in the dates specified for payments of any sums payable in periodic
installments under the Note or any other Transaction Document; (d)&nbsp;apply such
security and direct the order or manner of sale thereof as Seller in its
discretion may determine; (e)&nbsp;release, substitute or add any one or more
endorsers of the Note or guarantors of Buyer&#146;s obligations under the Note or
the other Transaction Documents; (f)&nbsp;except as expressly directed by Buyer in
writing to Seller with respect to particular payments, apply payments received
by Seller from Buyer to any obligations of Buyer to Seller, in such order as
Seller shall determine in its sole discretion, whether or not any such
obligations are covered by this Guaranty; (g)&nbsp;assign this Guaranty in whole or
in part; and (h)&nbsp;assign, transfer or negotiate all or any part of the
indebtedness guaranteed by this Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTOR&#146;S WAIVERS</B>. Guarantor waives: (a)&nbsp;any defense based upon the
death, incapacity, lack of authority or termination of existence of, or
revocation hereof by, any person or entity, or the substitution of any party
hereto, or any legal disability or other defense of Buyer, any other guarantor
or other person, or by reason of the cessation or limitation of the liability
of Buyer from any cause other than full payment of all sums payable under the
Note or any of the other Transaction Documents (subject to the provisions of
Section&nbsp;7 hereof); (b)&nbsp;any defense based upon any lack of authority of the
officers, directors, shareholders or agents acting or purporting to act on
behalf of Buyer or any principal of Buyer or any defect in the formation of
Buyer or any principal of Buyer; (c)&nbsp;any and all rights and defenses arising
out of an election of remedies by Seller; (d)&nbsp;any defense based upon Seller&#146;s
or Buyer&#146;s failure to disclose to Guarantor any information concerning Buyer&#146;s
financial condition or any other circumstances bearing on Buyer&#146;s ability to
pay all sums payable under the Note or any of the other Transaction Documents;
(e)&nbsp;any defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in any other
respects more burdensome than that of a principal; (f)&nbsp;any defense based upon
Seller&#146;s election, in any proceeding instituted under the Federal Bankruptcy
Code, of the application of Section&nbsp;1111(b)(2) of the Federal Bankruptcy Code
or any successor statute; (g)&nbsp;any defense based upon any borrowing or any grant
of a security interest under Section&nbsp;364 of the Federal Bankruptcy Code; (h)
any right to enforce any remedy which Seller may have against Buyer and any
right to
</FONT>
<P align="center"><FONT size="2">2</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P><FONT size="2"> participate in, or benefit from, any security for the Note or the other
Transaction Documents now or hereafter held by Seller; (i)&nbsp;presentment, demand,
protest and notice of any kind; and (j)&nbsp;the benefit of any statute of
limitations affecting the liability of Guarantor hereunder or the enforcement
hereof. Guarantor further waives any and all rights and defenses that
Guarantor may have in the event that Buyer&#146;s obligations under any of the
Transaction Documents is secured by real property; this means, among other
things, that: (1)&nbsp;Seller may collect from Guarantor without first foreclosing
on any real or personal property collateral pledged by Buyer; (2)&nbsp;if Seller
forecloses on any real property collateral pledged by Buyer, then (A)&nbsp;the
amount of the debt may be reduced only by the price for which that collateral
is sold at the foreclosure sale, even if the collateral is worth more than the
sale price, and (B)&nbsp;Seller may collect from Guarantor even if Seller, by
foreclosing on the real property collateral, has destroyed any right Guarantor
may have to collect from Buyer. The foregoing sentence is an unconditional and
irrevocable waiver of any rights and defenses Guarantor may have because
Buyer&#146;s debt is secured by real property. These rights and defenses being
waived by Guarantor include, but are not limited to, any rights or defenses
based upon Section&nbsp;580a, 580b, 580d or 726 of the California Code of Civil
Procedure. Without limiting the generality of the foregoing or any other
provision hereof, Guarantor further expressly waives for the period in which
any of the Obligations remain outstanding any and all rights and defenses which
might otherwise be available to Guarantor under California Civil Code Sections
2787 to 2855, inclusive, 2899 and 3433, or under California Code of Civil
Procedure Sections&nbsp;580a, 580b, 580d and 726, or any of such sections. Finally,
Guarantor agrees that the performance of any act or any payment which tolls any
statute of limitations applicable to the Note or any of the Transaction
Documents shall similarly operate to toll the statute of limitations applicable
to Guarantor&#146;s liability hereunder.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTOR&#146;S WARRANTIES</B>. Guarantor warrants and acknowledges that: (a)
Seller would not enter into the Transaction Documents but for this Guaranty;
(b)&nbsp;there are no conditions precedent to the effectiveness of this Guaranty;
(c)&nbsp;Guarantor has established adequate means of obtaining from sources other
than Seller, on a continuing basis, financial and other information pertaining
to Buyer&#146;s financial condition and the status of Buyer&#146;s performance of
obligations under the Transaction Documents, and Guarantor agrees to keep
adequately informed from such means of any facts, events or circumstances which
might in any way affect Guarantor&#146;s risks hereunder and Seller has made no
representation to Guarantor as to any such matters; (d)&nbsp;the most recent
financial statements of Guarantor previously delivered to Seller are true and
correct in all material respects, and fairly present the financial condition of
Guarantor as of the respective dates thereof, and no material adverse change
has occurred in the financial condition of Guarantor since the respective dates
thereof; (e)&nbsp;Guarantor has not and will not, without the prior written consent
of Seller, sell, lease, assign, encumber, hypothecate, transfer or otherwise
dispose of all or substantially all of Guarantor&#146;s assets; and (f)&nbsp;Guarantor
has the capacity and is legally competent to enter into this Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBORDINATION</B>. Guarantor subordinates all present and future
indebtedness owing by Buyer to Guarantor to the Obligations. Upon the
occurrence of an Event of Default (as defined in the Note), Guarantor agrees to
make no claim for such indebtedness until all Obligations have been fully
satisfied. Guarantor further agrees not to assign all or any part of such
indebtedness unless Seller is given prior notice and the assignee acknowledges
to Seller in writing that such indebtedness is subordinated to the Obligations
to the same extent as provided under the terms of this Guaranty. Upon the
occurrence of an Event of Default, any payment received by Guarantor on account
of such indebtedness shall be held in trust by Guarantor for
</FONT>
<P align="center"><FONT size="2">3</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P><FONT size="2"> Seller, and forthwith paid over to Seller, until such time as the
Obligations have been satisfied in full.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BANKRUPTCY OF BORROWER</B>. In any bankruptcy or other proceeding
occurring during the period in which any of the Obligations remain outstanding
in which the filing of claims is required by law, Guarantor shall file all
claims which Guarantor may have against Buyer relating to any indebtedness of
Buyer to Guarantor and shall assign to Seller all rights of Guarantor
thereunder. If Guarantor does not file any such claim, Seller, as
attorney-in-fact for Guarantor, is hereby authorized to do so in the name of
Guarantor or, in Seller&#146;s discretion, to assign the claim to a nominee and to
cause proof of claim to be filed in the name of Seller&#146;s nominee. The
foregoing power of attorney is coupled with an interest and cannot be revoked.
Seller or its nominee shall have the right, in its reasonable discretion, to
accept or reject any plan proposed in such proceeding and to take any other
action which a party filing a claim is entitled to do. In all such cases,
whether in administration, bankruptcy or otherwise, the person or persons
authorized to pay such claim shall pay to Seller the amount payable on such
claim unless and until the Obligations have been satisfied in full and, to the
full extent necessary for that purpose, Guarantor hereby assigns to Seller all
of Guarantor&#146;s rights to any such payments or distributions; provided, however,
Guarantor&#146;s obligations hereunder shall not be satisfied except to the extent
that Seller receives cash by reason of any such payment or distribution. If
Seller receives anything hereunder other than cash, the same shall be held as
collateral for amounts due under this Guaranty. Subject to the limitations set
forth in Section&nbsp;1.2, if all or any portion of the obligations guaranteed
hereunder are paid or performed, the obligations of Guarantor hereunder shall
continue and shall remain in full force and effect in the event that all or any
part of such payment or performance is avoided or recovered directly or
indirectly from Seller as a preference, fraudulent transfer or otherwise under
the Bankruptcy Code or other similar laws, irrespective of (a)&nbsp;any notice of
revocation given by Guarantor prior to such avoidance or recovery, (b)&nbsp;full
payment and performance of all of the indebtedness and obligations evidenced by
the Transaction Documents, or (c)&nbsp;Seller&#146;s surrender or cancellation or
exoneration of this Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL, INDEPENDENT AND UNSECURED OBLIGATIONS</B>. This Guaranty is a
continuing guaranty of payment and not of collection and cannot be revoked by
Guarantor and shall continue to be effective with respect to any indebtedness
referenced in Section&nbsp;1 hereof arising or created after any attempted
revocation hereof or after the death of Guarantor, in which event this Guaranty
shall be binding upon Guarantor&#146;s estate and Guarantor&#146;s legal representatives
and heirs. The obligations of Guarantor hereunder shall be in addition to and
shall not limit or in any way affect the obligations of Guarantor under any
other existing or future guaranties unless said other guaranties are expressly
modified or revoked in writing. This Guaranty is independent of the obligations
of Buyer under the Note and the other Transaction Documents. Seller may bring a
separate action to enforce the provisions hereof against Guarantor without
taking action against Buyer or any other party or joining Buyer or any other
party as a party to such action. This Guaranty is not secured and shall not be
deemed to be secured by any security instrument unless such security instrument
expressly recites that it secures this Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ATTORNEYS&#146; FEES; ENFORCEMENT</B>. If any attorney is engaged by Seller to
enforce or defend any provision of this Guaranty or the Note or the
Subordination Agreement (as defined in the Option Agreement), or as a
consequence of any default under the Note, this
</FONT>
<P align="center"><FONT size="2">4</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P><FONT size="2"> Guaranty or the Subordination Agreement, with or without the filing of any
legal action or proceeding, Guarantor shall pay to Seller, immediately upon
demand all reasonable attorneys&#146; fees and costs incurred by Seller in
connection therewith, together with interest thereon from the date of such
demand until paid at the default rate of interest applicable to the principal
balance of the Note as specified therein.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RULES OF CONSTRUCTION</B>. The word &#147;Buyer&#148; as used herein shall include
both the named Buyer and any other person at any time assuming or otherwise
becoming primarily liable for all or any part of the obligations of the named
Buyer under the Note and the other Transaction Documents. The term &#147;person&#148; as
used herein shall include any individual, company, trust or other legal entity
of any kind whatsoever. If this Guaranty is executed by more than one person,
the term &#147;Guarantor&#148; shall include all such persons. When the context and
construction so require, all words used in the singular herein shall be deemed
to have been used in the plural and vice versa. All headings appearing in this
Guaranty are for convenience only and shall be disregarded in construing this
Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CREDIT REPORTS</B>. Each legal entity and individual obligated under and
executing this Guaranty hereby authorizes Seller to order and obtain from time
to time, from a credit reporting agency of Seller&#146;s choice, a third party
credit report on such legal entity and individual.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GOVERNING LAW</B>. This Guaranty shall be governed by, and construed and
enforced in accordance with, the laws of the State of California, except to the
extent preempted by federal laws. Guarantor and all persons and entities in
any manner obligated to Seller under this Guaranty consent to the jurisdiction
of any federal or state court within the State of California having venue in
San Francisco, California, and also consent to service of process by any means
authorized by California or federal law.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS</B>. The provisions of this Guaranty will bind and benefit
the heirs, executors, administrators, legal representatives, nominees,
successors and assigns of Guarantor and Seller. The liability of all persons
and entities who are in any manner obligated hereunder shall be joint and
several. If any provision of this Guaranty shall be determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, that portion
shall be deemed severed from this Guaranty and the remaining parts shall remain
in full force as though the invalid, illegal or unenforceable portion had never
been part of this Guaranty.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ENFORCEABILITY</B>. Guarantor hereby acknowledges that: (a)&nbsp;the
obligations undertaken by Guarantor in this Guaranty are complex in nature, and
(b)&nbsp;numerous possible defenses to the enforceability of these obligations may
presently exist and/or may arise hereafter, and (c)&nbsp;as part of Seller&#146;s
consideration for entering into this transaction, Seller has specifically
bargained for the waiver and relinquishment by Guarantor of all such defenses,
and (d)&nbsp;Guarantor has sought and received legal advice from skilled legal
counsel in the area of financial transactions of the type contemplated herein.
Given all of the above, Guarantor does hereby represent and confirm to Seller
that Guarantor is fully informed regarding, and that Guarantor does thoroughly
understand: (i)&nbsp;the nature of all such possible defenses, and (ii)&nbsp;the
circumstances under which such defenses may arise, and (iii)&nbsp;the benefits which
such defenses might confer upon Guarantor, and (iv)&nbsp;the legal consequences to
Guarantor of waiving such defenses. Guarantor acknowledges that Guarantor
makes this Guaranty with the intent that this Guaranty and all of the informed
waivers herein shall each and all be fully enforceable by Seller,
</FONT>
<P align="center"><FONT size="2">5</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>


<P><FONT size="2"> and that Seller is induced to enter into this transaction and the
Transaction Documents in material reliance upon the presumed full
enforceability thereof.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS GUARANTY, AND BY
ITS ACCEPTANCE HEREOF, SELLER, HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY
JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (a)&nbsp;ARISING UNDER THE
TRANSACTION DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY PRESENT OR FUTURE
MODIFICATION THEREOF OR (b)&nbsp;IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THE
TRANSACTION DOCUMENTS (AS NOW OR HEREAFTER MODIFIED) OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND
EACH PARTY AND SELLER HEREBY AGREES AND CONSENTS THAT ANY PARTY TO THIS
GUARANTY AND SELLER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO AND
SELLER TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. EACH PARTY HERETO AND
SELLER CONSENTS TO THE JURISDICTION OF ANY FEDERAL OR STATE COURT WITHIN THE
STATE OF CALIFORNIA HAVING VENUE IN SAN FRANCISCO, CALIFORNIA.</B>
</FONT>
<P align="center"><FONT size="2"><B>&#091;SIGNATURE PAGE FOLLOWS&#093;</B>
</FONT>

<P align="center"><FONT size="2">6</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>



<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date
appearing on the first page of this Guaranty.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top"><FONT size="2">
<B>GUARANTOR:</B></FONT></TD>
</TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
By:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom"><FONT size="2"><BR><HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">&nbsp;</FONT>
<FONT size="2">George Rathmann, an individual</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
SSN:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2"><BR><HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>

<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" colspan="3" valign="top"><FONT size="2">
APPROVED AS TO FORM:</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top"><FONT size="2">
&nbsp;<BR>
</FONT><HR size="1" noshade><FONT size="2">
Alan D. Smith, Attorney for Guarantor</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="left"><FONT size="2"><B>CONSENT OF SPOUSE:</B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, the wife of George Rathmann, hereby consents to the
foregoing Guaranty and acknowledges that such Guaranty creates binding
obligations on George Rathmann and the undersigned, and of their individual,
joint and community assets.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="60%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">By:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
Frances Joy Rathmann</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">SSN:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2">7</FONT>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
