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HomeMy WebLinkAbout98-07302 .... '. -. No. Cjf- 7]0;;;' Civil Term '. ..... I':' / I. '.; : ~J;~:~ ~',:" P~(j.A~JA ~ 4:i ~ '. vs. ~k ~;'J7' a.'" "./- .",/ Court of Common Pleas Cumbo Co. / . .. . ~~, , ,\- ,~ , \ \ t, . ~("74;' ',,; .'M; ~'',f 'JJ!~:t;. ~ "" ',rl:' ;.l' ,\i . \;~,,~ ....";....." 'I' . .. I~ t~,. 'r' I~. *" ~' '~ . . "''''~:'/;(t.:'t,\ j-l ~ t'3~. ',. ~ ,. " ~. ,"'; ,~. r.< .,;f't I~" ,[ , .. I~~~' J"" /' , 4:':._ :: t" '~'I.;", .. '.' J. . '. '\ Ii ~ . ....l!.!f . ,. ", '. ;... t>>j.':' ,." ~:" I" f.. . I ..to" ,( ,..... "".,,':~ ' 1 'i- . ')'i"'t}", ..: . 'j,' .. 1t',' ~" '. ',.~~ ,\ '\ \ ,:~:.. . . ,~ 'OM?,- .,"....~- , ,~, '" ,If, ~'t- X' ".~" '-'.. ,.J,. i'-'\' ~" -~. ":,-~ ~-11t '....... '. ,~' t;;, ." . ',1.; l"', <-.JI ,~., .c/' '"'( '.;;.', ..' 'oJ ~~ ~. V'- . ,',. '~', .1''.-' '";: : I , "r,'.:" .~. " .y " ( '~/: . > . ' . , "', "..'. '..' " . - , '> " ,.> ,',. '. '..,.... ' '~~{\~l:~~f~[:J'i[r;"i;':;ii({~l;';;'~;:': '.', "..!:~.'~,c, '~~LA!.',','.': ~{&,' . Jr",QR~~,'~,N. :,""~, '. C, it.. . "l:9 !lE'ATRllE COi'Vf' ,', ',',' '. . '. ' , , ,\!~~i!*!iA\,[(,i:/',:"';1~;,>!,., ,~ ,,', ,4409NORTHfRONTSTREE'l '"."""":"""!"},",,,,,,:,,,,;:-"""''-' ,,<:, ,'.,,' " HARRISBURG; PENNSYLVANIA 17110-1709 ' '\>I~:';;;;\.~;::~';':';C'.!,:'iL:' ::":" "".. ,',' '(717) 236-9391' " ..--:--_...-._.,....~- .2.~~"-i" , -_._-_..~. Nicholas & Foreman, P.C. By: Bruce D. Foreman, Esquire ID # 21193 4409 North Front Street Harrisburg, PA 17110 (717) 236-9391 Attorney for Pennsylvania State Bank IN TIm COURT OF COMMON PLl~AS CUMBERLAND COUNTY, PENNSYLVANIA PENNSYLVANIA STATE BANI\, Plaintiff v, NELSON LICENSING, INC" CHARLES H. NELSON and JANET L, NELSON Defendants NO, 98-7302 CIVIL ACTION-LAW IN CONFI~SSION OF .JUDGMENT FOR MONETARY DAMAGES CERTIFICATE OF SERVICE I, Bruce D. Foreman, Esquire, do hereby certify that on this, the 16th day of August, 1999, I served a true and correct copy of Notice Under Rule 2958,1 of Judgment and Execution Thereon, Notice of Defendant's Rights in the above-captioned matter on the Defendants by sending the same first class mail, as follows: Nelson Licensing Services, Inc, 1108 East Chocolate Avenue, Suite 300 1',0, Box 1\05 Hershey, I'A 17033.01\05 Charles H, Nelson 1628 Melrose Drive Hummelstown, PA 1703G ,Janet L, Nelson 1G28 Melrose Drive llummelstown, PA 170:,6 Respectfully submitted, NICHOLAS & FOREMAN ", ') ,~ 'I, (.- B\r ' ) ~/l,.. Ie --- " ',"~ Bruce D, Foreman, Esquire Pa, SUjJreme Court lD #211 !l:3 ,HOD North Front Street Harrishurp;, PA 17110 (717) 23G-!l:,!11 Attorneys for Plaintiff C'- 1- , >- Lf: l.~'; (:. " - , , ( , .. : 'c..:..: , .' ;::J , " , , Cl i) (,.,~ " i C::. - , , J t:lJ ~. , 0- " , \~ ~',i I~., . , () ~ ':-.. ~'~ i , PENNSYLVANIA STATE BANK, plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA . ~ \ '1'\ . ,,'. ,_ P,; ,;::. ,":.' :.',' ,'. . '" " v. NELSON LICENSING, INC" CHARLES H. NELSON and JANET L, NELSON Defendants NO, CIVIL ACTION-LAW IN CONFESSION OF JUDGMENT FOR MONETARY DN~AGES pursuant to the Authority contained in the Warr'ant of Attorney, a copy of which is attached t,o the complaint filed in this action, I appear for the Defendant and confess judgment in favor of the plaintiff and against Defendants, jointlY and individually, as follows: principal $ 97,969,41 $ 9,796,94 Fees costs 11. :'9r $187.7BB.BG Ilb'l) 7(,~Jr tI iJ1~ndant" 7< TOTAL , .':" " .- ' ~ 4, Defendant, JANET L, NELSON, is an adult individual residing at 1628 Melrose Drive, Hummelstown, Pennsylvania 17036. 5, Defendant, NELSON LICENSING, INC., entered into a Promissory Note to Plaintiff dated October 30, 1997, in which Defendant, NELSON LICENSING, INC" agreed to repay to Plaintiff $50,000.00 together with interest at the rate of 10,5% per annun. A true and correct reproduction of the said Pl"omissory Note between Plaintiff and Defendant:, NELSON LICENSING, INC" is attached hereto, labeled Exhibit "A", and made a part hereof. 6, The said Promissory Note was accompanied by a Commercial Guaranty Agreement signed October 30, 1997, therein individual Defendants, CHARLES H, NELSON and JANET L. NELSON, each jointly and severally, guaranteed and agreed to indemnified and save harmless Plaintiff from any default in payments by Defendant, NELSON LICENSING, INC, A true and correct copy of the said Commercial Guaranty is attached hereto, labeled Exhibit "8" and made a part hereof, 7, A Disclosure for Confession of Judgment signed individually by Defendants, CHARLES Ii, NELSON and JANET L, NELSON, dated October 30, 1997, accompanied the documents. A true and correct copy of the said Disclosure for Confession of Judgment is attached hereto, labeled Exhibit "C" and made a pal't hereof, .; ...:-r. ___ . ,_..'. ~ ~ . j' .' . ,. ' .., . ,", ". ,. ", " .' ",': . . ".' . ',':' 8, No assignment of the said Promissory Note has been made. 9, No confession of judgment has previously been entered on the Promissory Note in any jurisdiction, 10, The said Promissory Note states that a default is committed by Defendant (s) if Defendant (s) fail to make any payment when due and fails to cure the default in payment within a period of fifteen (15) days of notice to do so, in which the said Promissory Note, authorizes the entry of judgment by confession against Defendants at the option of Plaintiff, for the remaining balance of the said Promissory Note, 11, The said Commercial Guaranty Agreement includes a Confession of Judgment and requires the individual guarantors to make good any default by the Defendant Corporation and its Promissory Note, 12. DefenudilL, [a.iled n_ _,__ llh1r..\'_~ the NELSON LICENSING, INC. , tel payment due the 15'" day of October, 1998, and has failed to make all payments due thereafter, 13, lndividudl Defend,lnt:1, ClIl\RLES ll, NELSON dud ,Jl\NET), NELSON, have f.:lil(>d. to j)]delllllify .'Hld 1ll,-d-:(~ (.V)()d Llv,~ paym(~nL:; r(~qujr(:d and gllarantel~?d 1.1,/ tlh:1l1 of NEL~;ON L](,ENS1NC, INC. f'..:; uf IJl.~cl'mh(~:r ] 1, 1998, the balance due under the said promissory Note and Guaranty Agreement is in the sum of Ninety.seven Thousand Nine Hundred Sixty- nine and 41/100 ($97,969,41) Dollars. 14, plaintiff demands judgment against the Defendant (s) , jointly and severally, as authorized in the aforesaid promissory Note and commercial Guaranty Agreement in the amount of $97,969.41 together with interest at the rate of $26,79 per day from December 14, 1998, until paid and costs, 15, Plaintiff further demands attorney's fees in the amount of 10% of the principal debt owed or $9,796,94, \~HEREFORE , Plaintiff demands judgment against the Defendantsr jointly and severally, for monetary damages in the amount of $107,766,35 together with costs and interest at the rate of $26.79 from December 14, 1998, until paid in full and costs. NICHOLAS & FOREf\1AN By (? (lj(Y( Bruce D, Foreman, ESQUIRE 4409 North Front Street Harrisburg, Pennsylvania 17110 (717) 236-9391 Attorneys for plaintiff D;-lted: . " ,,"1 I' . _...,.._._. ' .'. ': . .',' " '"0'" "..' _~ . . . ' ~ ' f ," ~-..J-I VERIFICATION I verify that the statements made in this Complaint are true and correct, I understand that false statements herein are made subject to the penalties of l8 Pa, C,S, Section 4904, relating to unsworn falsification to authorities, r c["'" ~01JJ:... By Pennsylvania State Bank .-.r-~.~_ , . . . . , , ' .'. . , " , .'. ~ .. . ' .~ " , PROMISSORY NOTE InlllalaJ Principal Loan Onto __.. $50,000.00 10-30-1997 Roloroncos in thl) shaded arOB oro lor londor's usn on! and do nollimlllha B Account SOOE9.!,L,.... hcobihl ollhis documonllo An Dorrowcr: Nelson L1cens.lno, Inc. (TIN: 25-\803381) 1'08 E. Chocolate Avenue, Sulle :wo, P.O. BOl 405 Iiershey. PA 17033 lender: PENNSVLVANIA STATE BANK 2148 Ma~et Sheet. P.O. Box 487 Camp HIli, PA 17001-04117 Principal Amount, $50,000,00 Inlllal Rale: 10,500% Dale 01 Note, October 30, 1997 PROMISE TO PAY. Nelson licensing, Inc. ("Dorrower") promlsello pay 10 PENNSYLVANIA STATE BANK ("lender"), or order,ln IDWful money of the United Slales 01 Amerlr.a, on demDnd, the pllnclpal l!Imounl or Fllty Thousand & (101100 DollllrS ($50,000.00) or so much liS mAY be outstanding, together wllh Interest on the unpaId oulsltmdlng principal balance Of coch odvtmce. Inlerest shell be CAlcuhlled 110m Ille dAle 01 coch advDnCc unUllcpeymenl or coch advance. PAVMENT, DOllower \OIj1l1 PDY Ihl$ IUDn ImmedlDtely upon lcndcr's dcmand. In Ilddlllon, BOllower \OIj1ll poy legular monlhly pDymenls oJ nil aCClued unpaid Inlelest due as 01 eM:h paynuml date, beginning December 1, 1997, with oil subsequent Inleresl paymenls 10 be due on 1I1e SlIme day oi coch monlh orler thai. Inlolosl on Ihis Nole is compulod on 0 3651365 simple inleres' basis; 1110.1 is, by opplyi'\g Iho raho olltle lInnual Inlerosl rnlo over Iho number 01 days In a yoar, mul1iplied by tho OUl5landlng principal balance, multiplied by the Ilcluol number 01 days lho pmlClpal balance is oulstandlng. Borrower wlUpay Lend!>r allonder's ll.ddross shown above or elsuch other placo as Lendor may dosignalo In wullng. Unl(!5S olholWlSO agrood or rOQuired by appllcablo law, paYOlonts WIll be appllod llrsllo accrued unpaid Inloresl, lhon to principal, and any romaullng amounl 10 any unpaid colloction cosls and lola chargos. VARIA8l.E INTEREST RATE. Tho Inlorosl ralo on Ihis Nolo is subjocllo change Irom time 10 limo basad on changos in un IndO. wlHch 1$ 1M Ponnsylvania Slale bank's Baso londlng Rato (tho -Indox-). Tho Indox Is nol nacossarily Iho lowost ralo chargod by londor Oil 11$ loan5 llnd 1$ snl br LondO/ In ils solo discretion. Iflho Indolt bocomos unavailablo during Iho lorm 01 this loan, Landor may dosignalo II !,ubS~llulll mdp1 .1fler nollfYlng OOl"lOwor. Landor will 1011 Ooaowor tho curIDlI1 Indo. ralo upon Oonowor's rOQUu~,t. Borrowor undurslands Ihat Landor mol' mll~O 10nl1s basod on ollmr ralos as wall. Tho lnlmosl ralo chango Will nul occur mOlD Ollallllllln each Dill'. The Index cunenll)' Is 8.500% per annum. TlU! Inleresl rllte to be eppUed to 1he unp.!l.ld pllnclpal blllance ollhll Nole will be at 0 ralft 01 2.000 percentage polnls over Ihe Index, resultlng In an inlUAl rate 01 10.500% per Annum. NOTICE: Under no clrcumslances willlho (nlorost ralo on Ihis Nole bo more Ihan Iho maximUIll rale allowod Ill' anlJllcabh' law. PREPAVMENT; MINIMUM INTEREST CHARGE. In any ovonl, ovon upon lull propaymonl ot Ihis Nole, Borrowor undO/slands Innl LondO! IS l!l1tllh!d 10 a mlnlmumlnlere.s' chJJr{lt 01 $7.50. Ol/WI liliW DOIlOwu/'s Ob!ll1illJon 10 pay any minj,71um inlluesl enalgo, Donowur may pill' WIthe!!! pen.11!,.:I1l VI R porlion ollho amounl owed oarliar IMn it is duo. Early paymonls WIll nol, unlass agreed 10 by lendor In Willing, 10110'.'0 BOlfowm of f.lOllowcr 0; obligahon 10 conlin\lO 10 ma"o paymonls 01 accrued unpaid Inlerest Ralher, thoy willleduco tho principal balance duo. LATE CHARGE. II a rogularly schedulod inlorosl paymonlls 15 dllYS or mOle IlI.le, BOHowor will bo chargod 10.000% ollhe regularly scheduled pllymenl or S50.00, whichever Is grealer. Illonder demands paymont ollhis loan, and BorrowOl does nol pay tho loan within 15 dllYS oller lender's demand, Borrower elso wlll be chll.lged ellher 10.000% 01 the sum ollhe unplllld principAl plU3 eccrued unpaid Interest or $!lo.oo, whichever 1$ grealer. DEFAULT. Borrowor will bo in delaull if any 01 the follo.....ing hllppons: (a) BOrlower fails 10 make any paymonl when duo, (b) 130TrOllt'llr brflat!> any promIse BOl/o....er has made 10 Londer, or Oorrower fails 10 comply wllh or 10 perform when due any olhO/ lerm, obligahon, co'.'enan~, or conddlOl1 conlainod In Ihis Nola or any agroomenl fElIaled 10 Ihis Nole, or In any olher agreement or loan Borrower has with Lendor. (c) Borrower dutaulls under any loan, exlenslon 01 cradll, securil, agreemenl, purchase or solos agreemenl, or any olher agreement, In lavor 01 any olhor crodllor or pOison ll1al may matorially allacl any 01 Borrower's propolly or Borrower's abilily 10 IGpay Ihis Nolo or porlorm Borrower's obligahons undor Ihls Nolo or llny ot Ih(1 Relalod Documon's. (d) Any ropresonlalion or stalemenl made or furnistlod to Lender by Borrowor or on Borrower's behal! IS lalso or mlslOll.dlOllln an'f maleliallol;pocl eilhor now or alllle lime made or lurnished, (e) Borrower becomes insolvenl, a receIver Is appuinled lor any pad 01 BOIIOWCl'l; proporly, BOlrowDt makes an asslQnmonllor Ihe benefit 01 creditors, or any procooding is commonced eilhor by Borrower or againsll3orrow(!! undcr lIny bankruplcy ot insolvency laws. (I) Any crodilor IriOl> 10 lake any 01 BOllower's propelty on or In which Lendor has 0 hen or socunlv inlmosl ThiS inCludes a garnishmenl 01 any of Borrowor', accounls wilh Lendor. (g) Any guarantor dies or any ollho olhor evonls doscflbod in lhl$ dc!aull Sf'ctron occurs wilh lospacl 10 any gualanlcll 01 Ihis Noto. (h) A malerial advorsa chango occurs In BOllowor's financial condllion. or londor bellQvc" Iho plospocl of paymonl or perform4rlce of lhe Inda.r"tedness is lmpalrtld. (i) LenoOl in {lood fallh dooms Usol! insocure, It cny dol6.utl, other Ihan a dolaull in pliymenl. is curable and II Bortowor has nol beon given a nollCo 01 a broach ollho samo p'OVlsron ot Illl!; Nolo within Ihe pracedlng Iwolvo (1~) months, it may be cUl6d (and no o...onl 01 dolaull will havo occurrod) Ill3orrowor, allor rocoiVlrlg wlIlIon nohco horn londor domanding cure 01 such dolaull: (a) curos Iho dolauU wilhln hlleof'l (15) days; or (b) il Iho cure requllos marc lhan MI{'on (15) dafs, immediatoly Iniliates SlOpS whIch lend3r dooms in Londor's solo discroliO'llo be sulllcionllo curo tho dolaulland theroaflcf conlinu('l; and complelns all roasonable and necessary slops sulllcionllo plOduce compliance as soon as IOllsonably pracllcal. LENDER'S RIGHTS. Upon default, Londor may, allor gIving ,uch nollcos as required by applicable law, declare tho enlrlo unpOld prmClpallJa1ancl'! (;1\ Ihis Nolo and all accrued unpaid Inlore!.t lmmodralely due, and Ihen Borrower will pay Ihal amount. Lendof may huo or pal' someo'lO (!Ise to help coUoct Ih!s NQle 11130rrowor doos not pay, BOrlowor also will pay lendor Ihalll.moun\. This Inetudes, subjocl 10 any Irmlls undor applicablo law, Lendor's attornoys' toos and Lonoor's 10Qal e~ponses whelher 01 nolthore is a lawsUlI, including atlorno\'S' lees Bnd logal o~ponsos lor ban~luplC\' proceedings (IncludIng o~orts 10 modlly or vacale any Ilulomahc sIllY or InJuncllon), appeals, and Bny anhcipalod pO$I"judQmont coilochon ~or"'ICOS. II nol prohibllod by IlppllC6.ble law, BOllower also will pay any ccurl co~ls, in addlhon 10 ell olhor sums provided by law. II judgmonl IS onlOlod In connoclion wilh Ihi, Nule, Inl0l8s1 will conlinue lo accrue on Ihis Nole atter Judgmonl allhB Inlarosl rll.te applicable to lhis Nolo ollhe limo judgmenl rs Mlorod. Thll Nole h&1 been 'delIvered to lender and accepted by lender In the Commonwealth 01 Pennsyl~anla. II there Is 0 law$ull. Douower 'QrtlU upon lender'. requut to submit to the Jurisdiction 01 the cour1a 01 Cumberland County, the Commonlo'o.e.llh 01 Pennsylventa. This Nole Illall be governed by and construed In accordance wllh the l,wI 01 the Commonweellh 01 Pennsylvania. DISHONORED ITEM FEE, BorrO"".M will pay. too 10 londor 01 $20.00 II [lorrOW(lf ma~os /I payment or, Gi')lrCW(".~, 10:1" lIno lilt.. CI"'CI, 01 pro,lJlhOrlUld charge WIlh whICh Borro\'\"OI I'll/V' is 1,101 dlshorlCl~(Id RIGHT OF SETOFF, OonO~OI glanls 10 lond.al a canllllcl"al pO~SO!.!.Olr ~[IcU!jlV Intol..::.l jn, Il~d 110laby as!.IQn!;, cor'oVny!:., d"hvnlS, pl"d'll'!., ll,,,j lran50lon. 10 Lendor 0.11 BOllowur's ng!.l, 1;1111 and Inluwst In and Ie, BOflt'wor"!; uccounlt. wltl1 Lond(lf (l'I<hl:lll1or (;h(l{.~II'\l, MiVlf\\-l!:.. U,!.O"'1' c\hH accounl) Including wllhoul limllalloo all accounts hald jCllrlll)' wlIh lOomllone ol!.o and 11.11 8Gcounls OOlrov.w mol' (,pell III II\!) lulUI/!, ('>,c'u<.,lr'l1!'O'''''''-"t', all IRA .~d Keogh accounls, and alllrUSI accounl~ 101 whICh Ihe granl 01. r.ocurllv lnlltl!tr.l would bo prOhlbllod by IllW. 00110Wllf (IulhOII}j)~ [.1'110(>1,10 1116 oKlonl pormlllod by llpphcablelalN,lo charge 01 wtoN all ,"ums OWIng on Ihl' Nolo agalnsl any Bnd all Slleh accounls. LINE OF CR[DIT. ThiS Nolee\l'ld8nco~ a revolvinlil floe 01 Cledl\' Adv.nco$ undof this Nole may be loqUlt"led 01811y b)' ()OIlOWor or by Qrl lIUlh()ll1r1d e~on l5ndor may bul noed nol IfilQuiH~ lhalaU orel leQU8lj,I~ ba conllfmed If" wrlling. All communicatIons, In,I'uchon~, Of dlracllons by lolOlJllono or ~lhOrv.,tse 10 lendar ~I8 10 be direcied to lenour', office ..~own above. The 10010wlng party or pal11ln al8 tulhorllec/ 10 rOQua~I odvanC(l~, Ullom 11',0 11l\1l 01 clsdit unlU Landel r~V8ti Irom B0110WlM' alleod6r" addre". tiho.....n above wflllon nollC8 01 fQlvoctlllon ot then lIiulhOllly~ Challe. H. Nelson, Pruldenl Borrower agrees to belllble for all ,um, ellhOr: (iii) IldvtnC'.ed In accocclanC8 wllh Iheln.'roctlon. 01110 aulhorllod PUff,on or (0) Cllldl\IJd 10 lIl.n 01 OOIlOWO(" aCGounll Woll!'l Umdor. lhe unpaId prinCipii balatlce owIng on 1hl$ Nole al any lIme mll.Y be oVldencod by (lrldor~om(ln\li on II1I!. Nola ~ by Londer's Internal lecord;, lnchJdlng dally compuler prml-outlo. l.odl)( will hsve no obligallon 10 advanco lunds ulldm (IllS Nole It la) Borro",'ol or Iny gualanler l1i In del'<lll uncler Iho tarms olltll$i Nole Of any agl&ern&l1llhall3orrowof or Iny guar.nlol has wlIh Londm, lflclu(\II\Q lI11y a foomenl ma,,.1n connec:\lon wilh the 1ilgnmg Ollh~ Nole; (b) flOl!o~r or any g:JlranlOl C8a!.e1i domg bUl;tno!:.s or 15 1!1!.olvonl, te) Any gUBfan(Ol 1. Q""s claims or olherwl58 attempl1i 10 11m!!, modl~ Of levo'" ~UCh gu.ranlor', guaranlee 01 \hl1i Nole or ony olhor 10lln WIth lorldn'. (dlllOlluw('r hll~ a~Plle'd ,","ds prOVided pUrJ.ulnl to Ihls Nol. lor purpOl.e~ oll\Dr Il1an ItlO~ aulhortl"ed by lendOf; or (o)lendur In QOor,1 hlllh Ot,(>rm 11SI!1l 1[l~,(K"'1' l.inaar lhll Nole or any 0111.-' .grttemollt t.elwoon l8n~f .nd UO'"rOlol,'ur. Cf.FAll.lINTCREST RA1E. If'llhe Im:ml 01 de!.vtt lor whICh Iho lendor doo:; nol accolo/Illa ItI$ Loan, mcludlng Ihe tlllluro o! BOffO""'flf 10 prow1..lILI' 11o'l1'\CIlll \obl.lInlnls Ii' IUQVlre(.1 ht\1eunder or under the Loan A\:I'eem@nl,ltllieppllcablomlel""'ral"onlhBloan,lor 0 pOllOd boglnn:ll\J lhll'" (]) d:lr!' ollm .....rrtlun nohCM of ,"uch dohlulland endmg upon lho CU'inlil 01 tald no!lC61d del.~lt, fohalllnCleaw ono quartor mono pOleoot (.n,".) tOI ~lllt 1,,',\ tllO'ty (30) d')'1i Oll.llid ~1I1a~!1I And Inc.....,.. ''llldOllI0''.! 0". quarto! o! one pOl conI (.~~~) dUllng Nch \1*1)' (30) day pUlln~ t"0'041101 dUlIl1U whrt'!, \t,f.' nolle.." dlillaull cont.rlLlGls. S\lCh Oolaul! mt.'e~1 ..Ie "hall apply \0 Ih. OUlt-landlng prlrlClpal bala-Ite 01 it... 10iln. Upon 1ho curmu 01 Iho [)(,hLNl at.lalJll.Ir-..lIl~Il:;.1 1.1. on lh. Loan 11"ill-1I uh'ltf110 Ihelntl,all)' 'QltMltJ-upOlllnloI8sl r.te lIo"ocllV6t on !ho dala on WIIICt. Iho r1llt"ulll~ CUlI.(j ANNUAL PAyOUT/ANNUAL Rt"VI[W. Thfilloanls Ioubjet.:I 10 'U1l11y IJ:J) dll peyoul dUlln\1 a.cII 111.(:.1 yoar al which i"n!; Ilof'IJ"I~.'H II '1\u~l Iml;!;'" '" lull t.;>t . p&,IOd 01 thirty (30) C'on5.ck"Ulh.... el)"'1i T tla lO&I1 commllnlftnl ",..ill 61l.J.llr. O:'1e yit" Irom 111. dale Il1allhtt 1"OI'\ls~o'y Nl~lll r.. I!JI" ulu1 11.., [llndar wlilll)VIIIW tile loan .rulLllllly 1(lI" IIlHIIJIl.'atr. .rld ..klaflt-lOu,,; t.uch rttO!Jwlll, Ind ex1er>s!On, 10 Le granlud pllldlcQlt.C lI'l lI.ft 1'lorl:,I!'I~llU' 1,1 !I'I' com~.tly ,nOiar .I'tCh~d.4ll, 1'\" ad'\oit.,.I\C.lo Hie lDt.r\ Ag',,*rnent 1"C1lor loal, pollC~. A.OVA.r.lCtS. A(I>."'1(:<<I" 00111.. t 01111 1lO,',1i llO- 1'1110. .t ~ m,.I'lIcllOn In . 1'hInI1YlW7\ ""'01," If/! f.Yl'l"C' ."'0' ':"';':.l"',h f-' . .j'" ',1 r.!;'''<f~\ .;' ;..'. 1.'.\1. .~.:'~, .' ~ .,'. ...~. ""., .-.. ,"" t'. "'.'.1,~ ' 1..._" ". w..t>!" :.1 EXHIBIT itA" 10-30-1097 Loan No 5005012-02 PROMISSORY NOTE (Continued) Page 2 in~lJu.:lions. authorIZing tho abo'.o ..:.:auntlo bo cho.rr;;od llnd Il.pphCd to lhO Loan I:lalanco. BANKING RD..ATIONSH1P. You shal! maIntain your pnmary coposil account folallonshlp wllh Ponnsylvonla Stalo l3nn~ dUlll1Q thu Iltu 011110 Loan GENERAL PROVISIONS. ThIs Nolo is payablo on domand, Tho InclUSion or spocrlrc dolaull proviSions 01 rights ot Londor shall no! proc1udo lundol'::' lillhllo doclalo paymant ollhis Nolo on ils domand. londor may dolay or lOlgo anforclng any ollis rights or lomodros undor this Nolo wllhoullot,roQ thorn. OOHOWO( and any olhar porson who signs.. guoranloos or undorsos this Nolo, 10 Iho odonl allowod by law, W41VO pro5ontmonl, camnnd tor parmanl, prolosl and nalieo 01 dishonor, Upon any change In tho lorms 01 this Noto, and unless othorwlso exprossly stotod In wrlllng, no pOlty who signs Ihis Noto, wholher as mahor, gunrantor, accommodation makor or ondorser, shall bo rnloasad 110m liabillly, All such pallios ogroo thaI londor may ranaw or a.land (ropeatedly and lor Bny length 01 tlmo) thIs loon, or roloaS6 any porty or guarantor or colllltoral; or Impair, fall to 1001110 upon 01 pot1oct Landor's socurity Intorost In tho collatoral; and lako any othor action doomod n~os!.ary by Londor withoul Iho consonl 01 or nohco to anyone All such portlos also agfOo lhol Londor mllY modify this loan wllhoulthe consent 01 or nolice to anyone othor thon 1110 POlty With whom tho modlll.:allorl Is modo. II any porllon ollhls Nato Is lor any rooson dotormlnod to bo unenlorcoabla. It WIll net allocltho onloreooblhty ot any otllor prO"'I!'.lons 01 1tll!;. Nolo. CONFESSION OF JUDGMENT. BQR-HOWER HEREBY IRREVOCABLY AUTHORtZES AND EMPOWERS ANY ATIORNEY OR THE PH01HONOlf<lW OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOrt BORROWER AF1EH A DEFAULT UNDEH THIS NOTE, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENlE:R JLJDGMENT "GAINSl BORROWER FOR THE ENTIRE PRINCIPAL OAl..ANCE OF THIS NOTE, ALL ACCRUED INTEREST, LA1E CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING TIiIS NOTE TOGETHER WITH INTEHEST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATIORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNP/,ID PllINCIf'Al BAlANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDIl[Q DOU..AIlS 1$500) Qrl Wlilell JUOGMENT OR JUOGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOil SO DOING, llllS r..l()I[ UIl A COl'Y or lHI~; NOTE VERIFIED BY AFFIDAVIT SHAl.l. DE SUFFICIENT WAARAN1. lHE AUlIiORITY GRAmm IN HilS NOlE TO CONfE:.iS JUUGt.',! t,l AGAINST BORROWER SHAlL NOT BE EXHAUSTED BY ANY EXERCISE Of THAT AUTHOHIl"Y. Bur SHALL cor..lW..IUE mOM 111,\[ TO liME /lfm AT AlL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DuE UNDER THIS NOTE, nORROWER HEI'l.LI3Y WAIVES ANY nlGIH nOHROWlH MAY HAVE TO NOTICE OR TO A HEMING IN CONNECTION WIlH ANY SUCH CONFESSION OF JUDGMEN1, (XCEPT ANY N01ICE AND/Oll HEARING REQUIRED UNDER APPLlCA.BLE LAW WITH RESPECT TO EXECUTION Of' TH[ JUDGMENT, At.:D ST/,TrS TH"l [.IWU1 " REPRESENTATIVE OF LENDER SFECIFIGAlLY CALLED THiS CONFESSION OF JUDGMENT PROVISION TO 130HIl0'0"'ETfS Al1EN1IOt. Oi~ E30AROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS HOlE, BORROWER READ AND UNDER5TCQO AU. THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS SEEN SIGNED AND SEALED BY THE UNDERSIGNED, BORROWER: ::7~--jJ, ~~ ~lIl1es H. Nelson, Pre51denl (SEAL) LENDER: PENNSYLVANIA STATE DANK Oy, p, ,1Cl. P"tj, Authorized Qrficer .....(jbl.RII., Lln.cIC..dll. LASl:RPRO,R.g. U,S. PI\. , T.M, Oll,. ....r. 3,2'(ellgQ7 cn I'f"S.r"leu. Ine AllIIghll rue,.'ll II''''-D~O t.;Uf,ON1 LN c' OVLI '" . . . . . r ,-~ .":, ' : . ~ " ' . '. . . ' . ~ , . ,~~ - ." '..', . ' r "', : ',' . ' '. .' COMMERCIAL GUARANT't , Loan Date' "Maturity Loan No' References In tho shaded areB Brc lor Lender's use onl and do not I1mit the ap Borrower: Nelson Llcenslng,lnc. (TIN: 25-1803381) 1108 E. Chocolale Avenue, sulle 300, P.O. Box 405 Hershey. PA 17033 Guarantor: Charles H. Nelson and Janet L, Nelson 1628 Melrose Drive Hummelstown, PA 17030 Lender: PENNSYLVANIA STATE BANK 2148 M.r1<et Street, P,O. Box 487 Camp Hili, PA 17001-0487 AMOUNT OF GUARANTY. This Is a guaranty 01 payment of the Note, Including wlthoulllmllallon Ihe principal Note amount 01 Fllty ThoUSllnd & 00/100 Oollars ($50,000.00). GUARANW. For good and valuable conslderollon, Ch.,les H. Nelson and Janel L, Nelson ("Guarantor") absolutely and uncondlllonally gu.,antee and promise 10 pay, Jolnlly and severally,lo PENNSYLVANIA STATE BANK ("Lender") or lis order, on demond, In legal tender 01 the United Stales 01 America, lhe Indebledness (as thallerm Is dellned below) 01 Nelson Licensing, Inc. ("Borrower") 10 Lender on Ihe lerms and condlllons set lorlh In Ihls Guaranty. OEFINITIONS. The lollowlng words shall havo the following meanings when used In Ihis Guaranty: Borrower. The word "Borrower" means Nelson Ucenslng,lnc.. GUarantor. The word "Guaranlor" means ehalles H, Nelson and Janel L. Nelson. who ere signing this Guarenty joinlly end severally, Guaranty. The word "Guarenl)" means Ihis Guaranly made by Guaranlor lor the benefit 01 LendOl dated OCtober 30. 1997, Indebtedness, The word "Indebtedness" means Ihe Noto, InclUding I') all princip.I, (b) 01l1nter051. (c) 0111010 ch.rges. (d) all fo.n foes and loan ch.rges. and (e) all colleclion cosls and exponses relaling 10 Ihe Nato or 10 any collalaral for Iha Nolo, Collection cosls and expensas Include w1thoullimitatlon all of Lende(s allornays' facs and Lenda(s legal axpensas. whether or not suit is instiluled, and allorneys' lacs and legal expenses for benkruptcy proceedings (Including ellorls to modify or vecale eny aula malic stay or Iniunctlon), eppeals. and any anticipated post-judgmenl collection services, Lender. The word 1-ender" means PENNSYLVANIA STATE BANK. its successors and assigns, Note. The word "Nole" means the promissory note or credit agreement dated October 30, 1997,ln Ihe orlgl~al prlnclpalamounl 01 $50,000.00 from Borrower to Lendar, together with all renewals of, axtenslons 01, modifications of, refinancings of, consolidations of, and substitullons for the promissory note or agreement. Nollce to Guarantor: The Note evidences a revolving line 01 credlllrom Lender to Borrower. Relaled DOCumenls. The words "Related Documents" mean end Include wilhoul IImitallon all promissory noles, credit agreements, loan agreements, envlronmantal agreements, guaranlies, security agreements, mortgages, deeds of trust, and all other Instruments, agreements and documents, whether now or hereaftar oxistlng, executed In connection with the Indebtedness. MAXIMUM LIABILITY. The maximum liability 01 Guarantor under this Guaranty shall not exceed al anyone lime Iha amounl 01 Ihe Indebtedness described above, pIUS all costs and expensea 01 (e> enlorcement 01 this Guaranty and (b) collecllon and sale 01 any collaleral securing 1~ls Guaranty. The above timltation on tiabllity Is not a restriction on the amounl of the Indebtedness of Borrower to Lender either In Ihe aggregale or at anyone time, If Lender presently holds one or more guaranties, or ~erea<<er recalves addilional guaranlies from Guarantor. the rtghts of Lender under all guaranties shall ba cumulative, This Guaranty shall not (unless specifically provided below to Ihe contrary) aHecl or invalidate any such other guaranties, Tha liability 01 Guaranlor .....i11 be Ihe aggregate liability of Guarantor under the lerms ollhis Guaranty and any such other unterminated guaranlles, NATURE OF GUARANTY. Guaranlor Intends 10 guarantee at all limes Ihe pertormance and prompt paymenl when due, .....hether al maturity or earlier by rOBson 01 accoleratlon or otherwise, of alllndebledness wilhin the limits set forth in Ihe preceding section of Ihis Guaranly, This Guaranty covers a revolving line 01 credll and guaranlor understands and agrees thOt Ihls guarantee shall be open and conllnuous unlll Iha Une 01 credll Is lermlnated and the Indebtedness I. paid In fUll, e!I provided below. The obligations of Guarantors shall be joint and several. Lender may proceed agalnst any of the Guaranlors Individually. against any group of Guaranlors. or againsl all the Guarantors In coe action. wilhout aHecting the right 01 Lender to proceed against other Guarantors lor amounts Ihat are covered by Ihis Guaranty, Any Inability ot Lender 10 proceed against any Guarantor (whether caused by actions of a 'Guarantor or at Lender) will nol aHect Lender's right to proceed against any or all remaining Guarantors lor ati or part of tho amounts covered by this Guaranty. DURATION OF GUARANTY, This Guaranty will lake eilecl when received by Lender wilhout the necessity 01 any acceptanca by Lender, or any notice to Guarantor or to Borrower, and will conllnuo In fu\1lorce until all Indebtedness shall have been lully and finally paid and satisfied Bnd all olhor obligations of Guaranlor undor this Guarantl shall havo been pert armed In tull, Release 01 any other guarantor or termination 01 eny other guaranty ot Iho Indebtedness shall not aHecllhe liability of Guaranlor under Ihis Guaranty, A revocation received by Lender Irom anyone or more Guerantors shall not aHecl the liability 01 any remaining Guaranlors under Ihis Guaranty, This Guar.nty covers a revolving line 01 credit and II Is speclllcallY anllclpated thai "ucluallons will occur In the aggregate amounl 01 tndebtedneSS owing from Borrower 10 Londer, Guarantor spectncauy llCknowledges and agrees that "ucluallons In Ihe amount 01 Indebtedness, even to zero dollars ($ 0.00), shall nol conslllute a termlnallon 01 thl. Guaranty. Guaranlor's Uablllty under Ihls Guaranty shall terminate only upon (a) lermlnallon In wrlllng by Bonower and Lender 01 the Une 01 credit, (b) payment 01 the Indebledr,eSS In lull In tegallender, and (c) payment In lull In legal tender 01 aU other obllgallons 01 Guaranlor under this Guaranty, GUARANTOR'S AUTHORIZATION TO LENDER, Guaranlor aulhonzes Londer, wlthoul nollce or demand and wllhout lessening Guarantor's liability under Ihls Guaranty, Irom lime to lime: (alia malee one or more addlllonal secured or unsecured loans 10 Dorrower, to lease equipment or other goods to Dorrower, or otherwise to extend addlllonal credit 10 Donower; (b) 10 aller, compromise, renew, extend, ""ce1erale, or olherwlse change one or more times Ihe lime lor p.yment or other terms 01 the Indebtedness or any pari 01 the IndebtedneSS, Including Increases and decreases ollhe rale ollnlerest on the Indebledness; extenslons may be repeated and may be lor longer than Ihe original loan lerm; (c) \0 talee and hold security lor Ihe paymenl 01 Ihls Guaranty or Ihe Indebledness, and exchange, enforce, w.lve, subOrdlnale, lall or decide nollo perlect, and release any such security, wllh or wllhout Ihe subslllutlon 01 new collateral; (d) 10 release, substltule, agree not 10 sue, or deal wllh anyone or more 01 Borrower's surelles, endorsers, or olher guoranlo,s on any terms or In any manner !.ender may choose; (e) 10 deter",lne hOW, when and wh.1 application of payments and credits shall be made on lhe IndebledneSS; (I) 10 apply such security and dtrecllhe order or mann.r 01 sale Ihereol, Including wllhoulllmllatlon. any nonludlclal sale permllled by Ih terms 01 the conlrolllng security ag,eemenl or "eed ollrusl, as Lender In lis dls<:retlon may dele,mlne; (gl to sell, Iranster, assign, or gr' participatiOnS In all or any part ollhe Indebl.aness; and (h) 10 assign 0' I,anster this Gua,anty In whole or In p.rI, EXllIBI'i' "13" ;--.r-1" . . ~ , ,.". '.' ," ,:,:",.' '. ", .'.... ,'. '. . '.'. ' ; - .' 10-30-1997 Loan No 5005012-02 COMMERCIAL GUARANTY Page 2 (Continued) ===---:'=__-====---'..:.=_==-~=='..:.':o .,'='.,::.,-.:;.".:::;;:.=.:.-=-.-=.=='-"-',..,....;._.__~:~:o.;.:,.=;;;..;;;;_.c:="'-=_-=-'.:..'_C::..o"...::;:c ,-;.:.:;::'-"....:.==--=:='~..,==-=-..;:::;=.._===..-=.=_. GUARA~TOR'S REPRESENTATIONS AND WARRANTIES. Guarantor rcplcscnls .1nd warrants to Lender thai (3) no representations or agreements 01 any kind havo boan mado 10 Guarantor which would lImit or qualify In any way the terms 01 thiS Guaranty; (b) this Guaranty is executed al B?rrower's request and nol allhe roquesl 01 Lendor; (c) Guarantor has lull power, nghl and authority loonIer inlo thiS Guaranty; (d) lho provisions 01 thiS Guaranty do nol confhcl With or rosullln a defaull under any agreement or other Instrument bindIng upon Guarantor and do not result tn a viOlation of any law, regulation, court decreo or order appllcablo 10 Guarantor; (e) Guarantor has not and wilt not, Without the prior wriUen consenl 01 Lender, sell, lease, assign, encumber. hypolhocate, transfer, or olherwise dispose 01 all or 5ubstanllally all of Guarantor's assets, or any interest therein; (I) upon llmder's request. Guarantor Will provide to Lender fmanCial and credit mformahon In form accoplable to Lender, and all, such financial information w~!ch currently ha,s be~n, and aU future ftnanclallnlormallon whIch Will be provided 10 Lender IS and wdl be true and correct In all material respects and lalrly presenlthe 'InanCllll ccndilron of Guare.nlor as ollho data!> tho ,lrnanClallnlorm~tlon r!'i prcvldad; (9) no material adverse change has occurred In Guarantor's financial condition Since Ihe dale of tho most recent ,frnanclal statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (h) no litigation, claim, Investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor IS pending or Ihreatened; (I) Lender has made no rcprcsenlallon to Guarantor as to tho creditworthiness 01 Borro~er; Bn~, U) Guarantor has eslablished adequate means of obtaining from Bot/ower on a continuing basis information regarding Sorrowe/'s 'manelal condItion. GUaranlor Agrees to "'cop adequatoly Informed lrom such means of finy lnets, events, or circumstances Which might in any way alfeet Guarantor's risks Utlder this Gua~anty, and Guarantor fur1hor agrees lhat Lendor shall havo no obligation 10 disclose 10 Guarantor any information or documents acquired by Londer in lho courso ollIs relatlonshrp WIth UOHowcr. GUARANTOR'S WAIVERS. Excepl as prohibited by applicable law, Guarantor waives any rig hI to requlro Lender (3) to continue lendIng money or to extend other credit to Borrower; (b) 10 mako any presentment, protest, demand, or notice of any kind, including notice 01 any nonpayment 01 the Indebtedness or of allY nonpayment related 10 any collaleral, or notice 01 any action or nonaction on the part 01 Borrower, Lender, any surety, endorser, or other guarantor In connection with the tndebtedness or in connection with the creation of new or addilionBlloans or obligations; (c) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (d) to proceed directly agaInst or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (e) to give notice oflhe terms, lime, and placl) of any publiC or private sale of personal property security hold by lender from Borrower or fa comply wilh any of her appricable provisIons of the Uniform Commercfal Code; (I) to pursue any other remedy withIn Lender's powor; or (g) to commil any act or omission of any kind, or at any time, with raspect to any matter whatsoever. Guarantor also w,aives any and all rights or defenses arising by mason of (a) any "one action" or "anti-deficienc~" law or any other law which may prevent Lender from bringing any action, Including a claim for deficiency, against Guarantor, before or aHer Lender's commencement or complelion of any foreclosure action, either judicially or by exercise 01 a power of sale; (b) any elocUon of remedIes by Lender which destroys or otherwise adversely aHects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss 01 rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging tho Indebtedness; (c) any disability or other defense of Borrower, 01 any other guarantor, or of any other person, or by mason of the cessation of Borrower's liability tram any cause whatsoever, other than payment In full in legal lender, 01 the Indebtedness; (d) any right 10 claim discharge of tha Indebtedness on the basis 01 unjustified impairment 01 any col/aterallor the Indebtedness; (e) any statute of limitations. jf at any time any action or suit brought by Lender against Guarantor is commenced there is outstanding Indebtedness of Borrower to Lender which is not barred by any applicable statute of limitations; or (f) any defenses given to guarantors at law or in equity other than actual pHymant and performance of the Indebtedness. If payment is made by Borrower, whether VOluntarily or otherwise. or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower's Irutitee in bankruplcy or to any similar person under any tederal or !itate bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of enforcement of this Guaranty. Guarantor further waives and agrOGS not to assert or claIm at any limo any deductions to Iho amount guaranleed under thIs Guaranty for any claim of setoff. counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor, or bolh. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS, Guarantor warrants and agrees that each 01 the waivers set lorth above is mada With Guarantor's rull knowledge 0; its significance and consequences and that, under the circumstances, the waivers are reasonable and not contra.ry 10 public policy or law. If any such walvor is determined 10 b~ contra')' to any applicable law or public policy. such waiver shall be effective only to the extent permmed by law or public pcH:y, LENDER'S RIGHT OF SETOFF, In addilionlo aU liens upon and rights 01 setoH against tho monoys, securities or other property of Guarantor given 10 Lender by law, lender shall .have. with respect to Guarantor's obligations to lender under this Guaranty and to the extent permitted by law, a contractual possessory socurity intorest in and tl right of soloff against, and Guarantor hmeby assigns, conveys, delivers, pledges, and transfers to lender nll ot Guarantor's right, titla Gnd tnlorcsl in and 10, all depo5ils, monc>y5, ':.p.curitic!io and other property 01 Guarantor now or hereafter in the possession 01 or on deposit with Lender, whelher held In .II genera.l Of 5pC'cial account or dcpo~ll, .....hethor tlcfd Jointly wHh someone else, or whether held for sale~eeping or othorwise, axcludmg however all IRA, Koogh, and trust accounts. Every such 50cunly interest and right of setoff m3Y be exercised without demand upon or notlCO to Guarantor. No security Interest or right of setoff shall be deemed to havo been waived by any act or conduct on the part of Lender or by any neolocllo exerCise such right of setoff or to enlmco such security interest or by any delay in so doing. Every right of seleff and security interest shall continuo in full foreo and eNeet until such righl 01 seloff or securily interest is specifically waived or released by an Instrument in writing executed by Lender. SUBOROINATION OF BORROWER'S OEDTS TO GUARANTOR, Gua'antor agrees that tho Indebtedness of Bo"ower to Lender, whelher now existing or hereafter Cleated, shall be prior to any claim that Guarantor may now havo or hereatler acquire against Borrower, whether or not Borrower boctlmes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim thai Lender may now or hereaftor havB against Borrowor. In the event of .ins,olvcncy and consequrmt llquidation of tho assets of Borrower, through bankrup1cy, by an ass.lgnment for the benefit 01 creditors, by voluntary liqUIdation, or otherwise, the assets of Borrower applicable to the payment of the claims of both lendor and Guarantor shall be paid 10 Lender and s.hall bo firs.1 applied by Lender to the Indebtedness of Borrower to Lender. Guarantor docs hereby a~siQ'n 10 Lend~r all claims which II may have or acquiio against Borrower Ot 8gain~t any a.sslgn~ or trustc-o in bankruptcy of Borrower; provided however, that such assignment shall be eHoclivo only tor tho purpose ,or assuring to Lender full payment in legal lender of th9Indebtednc~s. 1f l(lndc~ so requests, any notes or ere-Olt agreemenls now or hereatler evidencing any debts or obli~ations of BOrlower to Guarantor shall be markod with a 1C';jlcnd that thO sam(j era !.ubJoct 10 thiS Guaranty and shall bo delivered to Lender. Guarantor agrees., and Lender hCf('!by is aUlhon:ed, in lho nnmo 01 Guarantor, horn timo to timo to e);t.~ulG and flle financing statements and continuation statements and to execute such other documenls and 10 talo.o such (:lthor actions as Lendm dooms npcessary or approprialo 10 pC11OC1, preservo and enlOfCO lis ri~hts under Ihis Guaranty. MISCEl..lA.NEOUS PROVISIONS. Tho follO.....lng ml$Collane'ous pro\.'J~lons ara a par1 of thiS GuaranI)': Amendments. This Gunran1t, togeHlor WIth any Related Docl.rmcnls. con!.tltules the entl/B understanding and agreement of tM parties tS to tho mat1.et'S ~el forth in this Guaranty. No alteration of or amendment to thiS GUJranty shall be cffpctivo unlC'ss ~Iven in Writing ;'inct signed by the party or pat1ll's !.OLJQht to be c.t'.arged or bound by U',e allmahcn or amendment Apptice.ble law. ltl!5 Gua!flnf~ hr "'f:n dehver()d to lpndm and accC'pled by l.end01 . law!.uil. Guaranlor agl(>(>'!, upon :.. .~r's lequ('~l 10 !:utmil 10 the> ,Url!:,dldon 0' Itl{ '....c CommOn\,I,,'pallh of ppnn!:.ylvanla. If the~c rs a JT1~ (,f CUrT',b('r1and Coun'v. Common....e3t,lh ell, ~.I'" . . -00 ~ J. I " " \ ' . . , .'. ~':'. ' ' " '_.' -. , ~ 10-30-1997 Loan No 5005012-02 COMMERCIAL GUARANTY (Continued) Page 3 Pennsylvania. This Guaranty shall bo governed by and construed in accordance wilh tho laws of tho Commonwcallh of Ponnsylvanla, Attorneys. Fees: Expenses. Guarantor agrees to pay upon demand all of Lender's costs and oxpenses, including attorneys' f~s and Lender's legal OKponscs. incurred in connection with tho enforcement of this Guaranty. Lender may pay someone olso 10 help enforco this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include lender's attornoys' feos and legal expenses whether or nol thore is 8 lawsuit, Including attorne~' feos and legal expenses for bankruptcy proceedings (and Including efforts 10 modify or vacate any automatic stay or Injunclion), appeals, and any anticipated post-Judgment coUecliol1 services. Guarantor also shall pay all court costs and such additional fees as may be direcled by Ihe court, Helices. All nelices required 10 be given by either party 10 the other under this Guaranty shall be in writing, may be sent by lolefacslmile (unless othorwise required by law), and shall be effective when actually delivered or when deposiled with a nationally recognized overnight courier, or when deposlled In the United States mail, first class postage prepaid, addressed 10 the party 10 whom the notice Is 10 be given at the address shown above or to such other addresses as either party may designate to the other in wriling. If there is more than one Guaranlor, notice 10 any Guarantor will constituto notice to all Guarantors. For notice purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's ~urront address. Interpretation. In all cases where there Is more than one Borrower or Guarantor, thon all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the contold and construction so require; and where there is more than one Borrower named in lhis Guaranty or when this Guaranty is execuled by more than one Guarantor, tho words "Borrower" and "Guarantor" respectively shall mean all and anyone or more of them. Tho words "Guarantor," "Borrower," and 1..ender" include the heirs, successors, assigns, and transferees of each of them. Caption headings In this Guaranty are for convenience purposes only and Bre not to be used 10 intorpret or define Ihe provisions of this Guaranty. If a court of compotent juri~diclion finds any provision of this Guaranty to be invalid or unenforceablo as 10 any person or circumstance, such finding shall not render that provision Invalid or unenforceable as 10 any other persons or circumslances. and aU provisions or this Guaranty In all other respects shall remain valid and cmforceablo. II any ono or malO 01 Borrower or Guarantor arc corporallons o~ partnerships,' ills not necessary for Lender to inquire Into tho powers of Borrower or Guarantor or of tho officers, dlrl3ctors, p.grtners, or agents acting or purporting to acl on their behalf, and Bny Indebtedness made or created In reliance upon tho professed exercise of such powers shall be guaranteed under this Guaranty, Waiver. Lender shall nol be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver 01 such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with thaI provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to an}' future transactions. Whenever the consent of Lender is required under this Guaranty, Ihe granting 01 such consent by Lender in any instance shall not constttute continuing consent ~o subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of lender. DEFAlA.T INTEREST RATE. In the evenl of defaull for which the Lender does nol accelerate the Loan, including the failure of Borrower te prOVide Ihe financial statements as required hereunder or under the Loan Agreement, the applicable Interest rate on the Loan, for a period beginning three (3) days after wrmen notice of such defaull Bnd ending upon the curing of said noticed default, shall Increase one quarter of one percent (.25%) for the first thirty (30) days of said defaull and increase an addilional one quarter of one percenl (,25%) during each thirty (30) day period Ihereafter during which lhe no~iced default continues. Such default interest rale shall apply to the outstanding principal balance of the Loan. Upon the curing of the noticed default, the Interesl rate on tho loan shall revert to the initially agreed-upon interest rate effective on the dale on which the default is cured. FINANCING STATEMENTS. Furnish Lender wilh, as soon as available, bulln no evenllaler lhan one hundred t.\'enty (120) days after the end 01 each fiscal year, Guaranlor's personal financial statement and foderal income tax reI urn. All financial reports required to be provided under this Agreement shall be prepared in accordance with generally accepted accounting principles, applied on consistent bas.;s, and certified by Guara.ntor as being true and correct. CONFESSION OF JUDGMENT, GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE. TO APPEAR AT ANY TIME FOR GUARANTOR AFTER A DEFAULT UNDER THIS GUARANlY. AND WITH OR WITHOUT COMPLAINT FILED. AS OF ANY TERM. CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALl. ACCRUED INTEREST, LATE CHARGES. AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT. AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BLEE IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; ANO FOR SO DOING, THIS GUARANlY OR A COpy OF THIS GUARAI-'TY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT, THE AUTHORITY GRANTED IN THIS GUARANlY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALl. CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTil PAYMENT IN FUll OF All AMOUNTS DUE UNDER TI-'IS GUARANlY, GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO N01ICE OR TO A HEARING IN CONNECTION WIT>' ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARrNG REQUIRED UNDEH ArPLlCAOlE LAW WITH RESPECT TO EXECUTION OF T1;E JUDGMENT. AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONfESSION or JUDGMENT PROVISION TO GUARANTOR'S ATTHITION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS, IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY tS EFFECtiVE UPO" GUARANTOR'S EXECUTION AND DalVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WIll. CONTINUE UNTIL TERMINATED IN TliE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY," NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TD MAKE TI;IS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED OCTOBER 30, 1997, THIS GUARANTY HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED, ,. --', GUA~'A TOR: /......),',. X__ ..ftl"'t.t'- ~~.~",~:L~~:\,.,_..(SEALI C es H. Nel!.oOn x \ . I -,_......:J.j'!.~ ..- J')""' t.. Nelson 1,)\ ],", (SEALI 'o" p \ \' ..'., '1' . '.' _:' ,'. -. ,,' c '1. .....'. 10-30-1997 Lonn No 5005012-02 COMMERCIAL GUARANTY (Continued) Page 4 ==="==..::=---=-_-_-==:-..::;==:::o:c- ....__._. _____~_._____~_.n...___.____"..______.______~_____.._..., --------.- _n' .. .__,___._.__._..,_______~__..__~____.__._..._______.._.,......,--- ", "~o..-c..=...".o~,,~"'._;;:::,.-.-_7t.'c:...._:_.:._""=,, () INDIVIDUAL ACKNOWLEDGMENT STATE OF rr!..[}.1I)l{J~~ _'l,i~iaa~aL...) (i 'Il ) 55 COUNTY OF .J ) ,In 2':LlJ)!..Cl /)1 d ) On this, tho ~-::y)Ijy doy OfW~, 199.2.., boforo mo -G 'Q' a II e.ll , tho undersigned Notary Public. personally appeared Charles H. Nelson end Janel L. Nelson, known to me (or satisfactorily provon) 10 be tho person whoso names ara subscribed 10 fho within instrument, and ack"_OW10dgod thol they oxoculod tho sa mo for tho.purposos thorOi~cont d. In wllness whereo!,1 hereunto set my -- it. S~^L (:/~----.., ~ ~ GIGI CULLEN, NolMY Public ' 'C=2G( ( , , Camp Hill Boro, Cumbel land County ----------- -- - My Commlss~Expllos,Apr, 20;1998 Nola'Y Public in and lor tho Slalo 01 LASER PRO, Reg. U.S. Pal. & T,M. Off., Ver. 3.24 te) ';97 CFI Pro5llf'\llCll5, Inc. Allrlghll resllrvlld.IPA~E20 NELSON2.LN C1.0Vll ." ..' .. , . ,'. . . >: ' . . ' , " ',I' \ ,:' '.' ~, ,.',. . . '. " . . . ~ '. . I ( , ~ .-(-, ....;.. DISCLO~ JRE FOR CONFESSION OF - JDGMENT . "er1l'lclpal Loan Date Maturity Loan No Account InlUals '$50000;00 ,~:W:-'997 5005012-02 5005012 References In Iha shadad area are lor Lander's usa onl and do nolllmlllha a pllcabilil of Ihls documonllo an articular loan or 110m, Borrower: Nelson Licensing, Inc, (TIN: 25-1803:181) 1108 E, Chocol81e Avenue, Suite 300, P,O, Box ~05 Hershey, PA 17033 Guarantor: Charte. H, Nelson and Janel L. Nelson 1628 Melrose Drive Hummel.lown, PA 17036 Lender: PENNSYLVANIA STATE BANK 2148 Market Slreel, P,O. Box ~87 Camp HIli, PA 17001-O~87 DISCLOSURE FOR CONFESSION OF JUDGMENT . 19.Jl, A GUARANTY OF A PROMISSORY NOTE FOR I AM EXECUTING, THIS be"" DAY OF OdC\l'~ $50,000,00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUOGMENT, IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THIIT LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTaLlGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS,INCLUDING AJlY RI HT TO ADVAIICE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERI~ GM ,T AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIALS:'; i\. B. I FURTHER UNDERSTAND THA IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVAJlCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS l.ANGUAGE THAT WOlUl PERMIT LENDER, AFTER ENTRY OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON. TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FUlL OR PARTIAL PAYMENT OF THE JUDGMENT. HOWEVER, LENDER MUST PROVIDE NOTICE TO ME UNDER APPLICABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT, IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED ~.ND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTaLlGENTLY AND VOLUNTARILY WAIVING THESE ..""....., ~,,~, "''' ~O """'~'f' ~,"G "' m, ~G."'. '" AA' ...." ,,,.,""' "' APPLICABLE STATE AJlD FEDERAL LAW. INITIALS: ,..' "",",,.. "{\ C. AFTER HAVING READ AND DETERMINED WHICH OF E FOLlOWING STAIEMENTS ARE APPLICABLE, AND BY PLACING MY INITIALS NEXT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT: INITIALS ---' I, I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUf/SELIN CONNECTION WITH THE GUARANTY, _~ 2, A REPRESENTATIVE OF LENDER SPECIFICAlLY CAlLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY TO MY ATTENTION, 0, I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000: THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN 1 INITIALED AND SIGNED IT: AND THkT I RECEIVED A COpy AT THE TIME OF SIGNING, THIS DISCLOSURE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED, :~~ '" _(ClLL~ ll_tQQDn _ (SEAL) x \~hartes H, Nelson, XMd rJ-.-. C JAnet L. Nelson _,_",__~_,____,,__"_________'_'___"'______'____''7"-'''''' - - ._----------~-_...-----_._-_._-- ._-----~----_.--- ____ (SEAL) lAS[R PRO. RtO uS I'AI. & T M Oil . Vl'f :l:" (n' Olt1 elll" (;~:,l'r'o'I(t1>, II'1C Ai' f1[J'lh rnt'\.rC'l jPA- D30 hif l SOl..;> I ~ c' O\-'ll EXHIBIT "C" ~ ,- (". I' ii' .., ,- N V:> \:,-':' ,:.; j~ ~ ~ ~ ....... -4 '- ~J ~ S J ~ ~ ~ ~ 1\'1 ~ (...; () tv .j '- r .6 r<,,' ',j I' ~ "< I" I I. I ~ r t .: -' J" \.-> ~ ~ . ' . ' . ' ...-" '. " . -;-" ('~ 1 V, ,'. " \~ - " ' .. ':"""" ..-.." , ' , :m.':i.io':': .':;(,.,....,.. ' . , . "" , " " ~--.,. .~, ,...-.~~...,"';..(.. "", ,: - - -.. ' .. ........ '. . -. ; ~:..:...::....~>..,..".._.,.,....."._...,_.._._....'_..,.."... ,.........__........__ ,__,_,_.""" _".., " . '. .. . ...._. ..._, _'._ ._."._.....'.,'.._"..i.._......~..c';,r:._'.....:',~'l,;_;.!.;..:J~ ~~~~6~1~;j,)f,~;~',., , ' " ."", "d, ,:~t;~:~i~~~ "":'~EDro8r:ATRUE COPY: "NIC~?:e~~R~ ~~~:::::e~ p.e. ! '/:, ,~'-'::i':':i~~~~ 'tl.~'i'~'d..~::11,\"i",::/"'..".. .,~;,". " .. .., ,"i)" ,t/~~l>'i~ i,;::;:;~:f"'';:' .','" ,'~' lIARRISBURG, PENNSYLVANIA 17110-1709 ~ , "", :';"':, :V:.l~~,~, ..i,...~..("",I,.:.,..(.,. : i'l'} J~'i\Ll\~''''~~ ::~f~~::,~,~.~?I..~;':~>"'~" " (71.7) 23,~.9391. I t,::::(,thf)~'r::,<~~h t!;'I";,O!.':J,',<i.,. ',. w'{\! ~:'4.'wf1>"?1<~i~ ,:-!' ,~i"ii"l'( "" ; : . , , , , ~:' '< 6~. ..", " " ~ ! \,", ./ Ii. \,. .~'~,.. ~""iil. ~p~.}~~.)V~. *1:',_"';: i .; ':~;; /~. " , "i' j I, " , ,~ ;.'~' . " ,{ .!. . " " '--:1 " '.\/' " "i ~ .. \ c.~...~... I, I!, -'!, ;~"~-'i. ' ~J."-/ ./ 'r'" " , ~'1!' . ~ .~: ~~~~: ~,,,:"'. '{<,.' 't,l ~: "j,' j" J( :'l..t...'ti,"~,~;l; , , ,~J-:', '.,-.; ,;, r ,~~ ,i':- ,. ~ ~ "., ,Q,:i\,/ '~1,', '''\~'' .t, f'''-'' . ... t ~-'. ,~'!' . I " \. . ;.., .~.o' ",;: ~j .'.:I}.I .. .~:. i .~. J' , 'P, .""" ~ '. ,\ ~"-;. ''I!i:~'. . ""\'''7t;-~... ~ I ,~ ,..', , ,J'l' .~;~.':,; 'r '~i'~f ";' " , . :1 '-I' . , , " ( ...,'. '"Ii , '~:.J ,',\ .' .. , " . < '". . I' " ' '.,. '. ".'"'. ,.., ,\.;. " . '. . " .'.. "