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HomeMy WebLinkAbout01-21-131505611185 REV-1500 EX (02-it)(Fp PA Depenmenl d Revenue 4FFlCIAL USE ONLY Bureau of Intlividual Taxes County CAtle Vear File Number PO BOX 280601 INHERITANCE TAX RETURN 21 12 1218 Hartisburg, PA 17128-0601 RESIDENT DECEDENT ENTER DECEDENT INFORMATION BELOW Soci21 S¢CUrlty Number Date of Death MMDDYVVY Date Of Birth MMDDVYW 193-36-2917 01292012 10151946 Decedent's Last Name Suffix Decedent's First Name MI LIDDICK SALLY ~ (If Applicable) Enter Surviving Spouse's Information Below Spouse's Last Name Suffix Spouse's First Name M I LIDDICK, SR• THOMAS G Spouse's Social Security Number THIS PETURN MUST BE FILED IN DUPLICATE WITH THE - - REGISTER OF WILLS FILL IN APPROPRIATE BOXES BELOW ® 1. Original Return ^ 2. Supplemental Return ^ 3. Remainder Retum (Date of Death ^ 4. Limited Estate ^ 4a. Future Interest Compromise (date of ^ Prior to 12-13-82) 5. Federal Estate Tax Return Required ® 6. Decedent Died Testate (Attach Copy of Will) ^ death after 12-12-82) 7. Decedent Maintained a Living Trust (Attach Copy of Trust.) ~ 8. Total Number of Safe Deposit Boxes ^ 9. Litigation Proceeds Received ^ 10. Spousal Poverty Credit (Date of Death ^ 11. Election to Tax under Sec. 9113(A) Between 12-31-91 and 1-1-95) (Attach Schedule O) wrcnearunucnl - TNIa SECrION MUST BE COMPLETED. ALL CORRESPONDENCE AND CONFIDENTIAL TAX INFO{MATION SHOUL081 Name Daytime TeMphone Numtlgtt~ $ O SALVATORE BAUCCIO 7 17-~7JT5238 S ' 31lR OFWILL~1l EONLY r> ~ n; N rr1 :+:, First Line of Address 1~4: .. - y~ - O ~ 100 PINE STREET . r.... r; t. "' '~ -si ...~.' ~1 Second Line of Atldress --f r~_~ `, .I ^-~ `"'' I _. P•0• BOX 1166 `' P) `~° `'' ~T City or Post Office State ZIP Cade DATE FlLED HARRISBURG PA 171081166 Correspondent•ce-mail address: SBAUCCIOaMWN•COM Untlar penalties ofperjury, I declare That I have examined this return, induding aaompanying schedules and statements, and to the beat d my knovaedge and beNef, it is true, wrcect and complete. Declaration of preparar other than the personal representative Is basetl on ell in(onnalbn of whits preperer has any knowletlge SIG~j RE OF PERSOfLRESPfd ~~~ FOR FILING~2ETURN / p/TF _/ 49 LONGWOOD DRIVE, MECHANICSDURG, PA 17050 SIGNATURE OF PREPARER OTHER THAN REPRESENTATIVE ~ /A~yO~ / DP~TE~ MCNEES WALLACE 8 NURICK LLC, BY: /ti 100 PINE STREET, P•0. BOX 1166, HARRISBURG, PA 17108-1166 PLEASE USE ORIGIN/V_ FORM ONLY L 1505611185 Side 1 OM464] 3.000 1505611185 1505611285 REV-i500 EX (FI) Decedent's Social Secudty Number 193-36-2917 RECAPITULATION t. Real Estate (Schedule A) .... .. . ................... .. 1, Q . 0 Q 2. Stocks and Bonds (Schedule B) . .. ... .. .... .. ..... .... . . 2 Q , Q 0 3. Closely Heltl Corporation, Partnership or Sde-Proprietorship (Schedule C), 3. 300 , Q 0 0 • Q Q 4. Mortgages and Notes Receivable (Schedule D) q Q - Q Q 5. Cash, Bank Deposits and Miscellaneous Personal Property (Schedule E) 5, Q . Q Q 6. Jointly Owned Property (Schedule F) ^ Separate Billing Requested g, Q • Q 0 7. Inter-Vivos Transfers & Miscellaneous Non-Probate Property (Schedule G) ^ Separate Billing Requested .... 7. 91 , 7 Q 1 . Q 0 8. Total Gross Assets (total Lines 1 through 7) ..... .. ....... .. . . g. 391 , 7 Q 1 • Q 0 9. Funeral Expenses and Administrative Costs (Schedule H) ... ... ... .. .. g, 18 , 0 8 3.0 0 10. Debts of Decedent, Mortgage Liabilities, and Liens (Schedule I) 1 p, Q . Q Q 11. Total Deductions (total Lines 9 and tg), 11. 1$ , 083.00 12. Net Value of Estate (Line 8 minus Line 11) , 12, 3 73 , 618.00 13. Charitable and Governmental Bequests/Sec 9113 Trusts for which an election to tax has not been made (Schedule J), , 13. 0 , Q Q 14. Net Value SubJect to Tax (Line 12 minus Line 13) , 14. 37 3 , 618 • Q Q TAX CALCULATION -SEE INSTRUCTIONS FOR APPLICABLE RATES 15. Amount of Line 14 taxable at the spousal tax rate, or transfers under Sec. 9116 (a)(1.2)X.O. 373,618.00 1s. 0.00 i6. Amount of Line 14tHxable at lineal rate X.O- Q.OQ 16. Q•OQ i7. Amount of Line 14 taxable at sibling rate X.12 Q,QQ ,,. o.oo i6. Amount of Line 14 taxable at collateral mte X .15 Q. 0 0 18 0• Q Q 19. TAX DUE ....... .. .. ... .. .. .. .. ....... ...... 19. 0.0Q ^ 20. FILL IN THE BOX IF YOU ARE REQUESTING A REFUND OF AN OVERPAYMENT 1505611285 oMasae s.ooo Side 2 1505611285 REV-15110 EX (FO Page 3 Decedent's Complete Address: File Number 21 12 1218 DECEDENTS NAME Y STREET ADDRESS CfTV G STATE ZIP Tax Payments and Credits: 1. Taz Due (Page 2, Line 19) 2. CreditslPayments A. Prior Payments Q . Q B. Dismunt ~ . ~ ~ 3. Interest (t) Total Credits (A + B) (2) 4. If Line 2 is greater than Line 1 + Line 3, enter the difference. This is the OVERPAYMENT. Fill in box on Page 2, Line 20 to request a refund. 5. If Line 1 + Line 3 is greater than Line 2, enter the difference. This is the TAX DUE. (3) (q) 0 . ~ 0 (5) Make check payable to: REGISTER OF WILLS, AGENT. PLEASE ANSWER THE FOLLOWING QUESTIONS BY PLACING AN "X" IN THE APPROPRWTE BLOCKS 1. Did decedent make a transfer and: Yes No a. retain the use or income of the property transferred ...................... .. ^ ^X b. retain the right to designate who shall use the property transfamed or its income ........ . ^ : i i i ^ nterest .......... .. ..................... . c. reta n a revers onary ^ d. receive the promise for Ida of eiMer payments, benefits ar care? .................. 2. If death occurred after Dec. 12, 1982, did decedent transfer property within one year of death without receiving adequate consideration? ............................ . 3. Did decedent own an "in trust for" or payable-upon-death bank account ar security at his or her death? . ^ 4. Did decedent own an individual retirement account, annuity, or other non-probate property, which contains a beneficiary designation? .. . . ............................. ® ^ IF THE ANSWER 70 ANY OF 7HE ABOVE OUES710N5 IS YES, YOU MUST COMPLETE SCHEDULE G AND FILE IT AS PART OF THE RETURN. For dates of death on or after July 1, 1994, and before Jan. t, 1995, the tax rate imposed on the net value of transfers to or for [he use of the surviving spouse is 3 percent [72 P.S. §9 N 6 (a) (i. t) (i)]. For dates of death on or after Jan. 1, 1995, the tax rate imposed on the net value of transfers to a for the use of the surviving spouse is 0 percent [72 P.S. §9116 (a) (1.1) (ii)]. The statute does not exempt a transfer to a surviving spouse from tax, and [he statutory requirements far disclosure of assets and filing a tax return are still applicable even if the surviving spouse is the only beneficiary. Far dates of death on or after July 1, 2000: • The tax rate Imposed on the net value of transfers from a deceased child 21 years of age or younger at death to or for the use of a natural parent, an adoptive parent or a stepparent of fhe child is 0 percent [72 P.S. §9116(a)(1.2)]. • The tax rate imposed on the net value of transfers to or for the use of the decedent's lineal beneflciades Is 4.5 percent, except as noted in [/2 P.S. §9116(a)(1 )]. • The tax rate imposed on the net value of transfers to or for [he use of the decedent's siblings is 12 percent [72 P.S. §9116(a)(1.3)]. A sibling is defined, under Section 9102, as an individual who has at least one parent in common with the decedent, whether by blood or adoption. ouaelr z.oso REV-0501 FJ(~1fi-90) SCHEDULE C (bMMONvVEALTH OF PENNSYLVANIA CLOSELY-HELD CORPORATION, INHERffANCE TAX RETURN PARTNERSHIP ORSOLE-PROPRIETORSHIP ESTATE OF Schetlule G1 or C-2 (including all supporting information) must be attached for each cbsely-held cgporatlmlpartnership interest of the decedent, other than e sole-proprietorship. Sea instructions for the wppwng Infonnalim b be submitted for ads-propriefaships. ITEM VALUE AT NUMBER DESCRIPTION DATE OF DEATH ~' The closely held stock (a probate sees t) passes to decedent's spouse, Thomas O. Liddick, Sr., per Item 2 of Will. Subsequent to death, the stock was sold for $300,000 (a copy of the Stock Purchase Agreement is attached). 50 Shares Sarkleigh Management Oroup, Inc. W sale price 2 490 Shares Sarkleigh Productions, Inc ® sale price awasw t.apa Ti7fAL (Also enter on line 3, Rai more space is needed, insen additional sheets of [he same 54,000 246,000 $ 300.000 REV-1518 EX i (0a-09) Pennsylvania DEPARTA£Ni OF REVENUE INHERITANCE TAX RETURN RESIDENT DECEDEM SCHEDULE G INTER-VIVOS TRANSFERS AND MISC. NON-PROBATE PROPERTY This schetlule must be completetl and filed If the answer to any of questions 1 through 4 on page throe of the REV-1500 is yes. ITEM NUMBE DESCRIPTION OF PROPERTY w~nEnEwweornEmasrEaff.rflaa¢nnorsHrro oECecewruo nEOSieormaeraa An~aADprosrE Oem maaeu esrAre DATE OF DEATH VALUE OF ASSET y, OF DECDS INITEREST EXCLUSION IFAPPI.IG4aLE TAXABLE VALUE ~~ MorganStanley SmithBarney Roth IRA Account #724-68570-SO-790 6,381 100.0000 0 6,381 Beneficiary: Thomas Liddick, Sr. 2 MorganStanley SmithBarney Simple IRA Account #724-68514- 12-790 85,320 100.0000 0 85,320 Beneficiary: Thomas Liddick, Sr. Interest accrued to 1/29/2012 0 100.0000 0 TOTAL (Also enter on Ilne 7, Recapttulatlon) $ If more space is neetleq use atlditlonal sheets of paper of [he same size. 9W48AF 3.000 REV-1511 E%~ (10.09) pennsylvania OEPNnABROF REVENUE ESTATE OF Decatlent's debts must ba reported on Schedule I. REM NUMBER DESCRIPTION AMOUNT A. FUNERPL EXPENSES: ~, Myers Huhrig Funeral Home funeral expanse 14,157 B. 1 ADMINISTRATIVE COSTS: Personal Representathre Commissions: Name(s) of Personal Representative(s) Street Address CIN SCHEDULE H FUNERAL EXPENSES AND ADMINISTRATIVE COSTS State DP Year(s) Commission Paid: 2. Attorney Fees: 3. Family Exemption: (If decedent's atldress is not the same as claimant's, attach explanation.) Claimant Street Address 4. 6. 6. 7. 1 Ciry State DP Relationship of Claimant to Decedent Probate Faes: Accountant Fees: Tax Return Preparer Fees: McNees 9fallace & Nurick LLC Costa: Probate Feea $ 369.50 Oath 20.00 Photocopy 8xp. 6.60 Total from continuation schedules 3,500 396 30 18 SWABAG 2.000 If more space s needed, use additional sheets of paper of the same size. Hetate of: Sally J. Liddick Schedule H Part 7 (Page 2) 2 Cumberland County Register of mills Coat to file Inventory and PA Inheritance Tax Return 21 12 1218 30 Total (Carry forward to main schedule) 30 REV-1513 EX+(01-10) Pennsylvania OEPARIAENT OF REVENUE INHERRANCE TAX RETURN RESIDENT DECEDEM SCHEDULE J BENEFICIARIES FILE NUMBER: Sall J. L1ad1CK 21 12 1218 RELATIONSHIP TO DECEDENT AMOUNT OR SHARE NUMBER NAME AND ADDRESS OF PERSON(S) RECENING PROPERTY Do Not List Trustee(s) OF ESTATE I TAXABLE DISTRIBUTIONS (Intlude oualght spousal d'sidbutions antl Transfers antler Sec. 9116 (a) (1.2).] 1. Thomas G. Liddick, Sr. 49 Longwood Drive Mechanicsburg, PA 17050 MorgaaStanley SmithBarney Roth IRA Account #724-68570-10-790 Inventory Value: 6,381 MorgaaStanley SmithBarney Simple IRA Account #724-68514-12-790 Inventory Value: 85,320 Accrued: 0 All of Residue: 281,917 Surviving Spouse 373,618 ENTER DOLLARAMOUNfS FOR DISTRIBUTIONS SHOWN ABOVE ON LINES 15 THROUGH 1 8 OF REV-7500 COVER SHEET, AS APP ROPRIATE. II NON-TAXABIE DISTRIBUTIONS A SPOUSAL DISTRIBUTIONS UNDER SECTION 9113 FOR WHICH AN ELECTION TO TAX IS NOT TAKEN: 1. B. CHARRABLE AND GOVERNMENTAL DISTRIBUTIONS: 1. TOTAL OF PART II - ENTER TOTAL NON-TAXABLE DISTRIBUTIONS ON UNE 13 OF REV-1500 COVER SHEET. S 0 awasAl 2.000 If more space Is needed, use addiUonel sheets of paper of the same size. FILL OF SALLY J T.IDDICK I, SALLY J. LIDDICK, of Cumberland County, Pennsylvania, declare this to be nay will and hereb}' revoke all prior wills and codicils made by me. 1. Personalty. I bequeath such items of my tangible personal property as are specifically itemized on a list, if any, in my handwriting, signed and dated by me at the end thereof, and attached to this, my will, to the persons named thereon to receive such items. I bequeath to my husband, Thonas G. Liddick, Sr., all of my remaining tangible personal property not uses in business or for the production of income, including without limitation furniture, furnishings, clothing, jewelry, objects of art and decoration, and t},e like, and any motor vehicles which I own, together with the insurance thereon, if he survives me, If my husband does not survive me, then I bequeath all said property, together with the insurance thereon, to my son, Thomas G. Liddick, Jr., if he survives me, and if he does not survive me, to his issue per stirp es. 2. Residue. I bequeath, devise, and appoint all the rest of my prop•~rty, of whatever nature and wherever situated, including property over which I hold a power of appointment, except that I do not exercise any power of a~~pointment given to me by my husband, to my husband, Thomas G. Liddick, Sr. if he survives me, or, if h.e does not survive me, to my son, Thomas G. Li,id:.ck, Jr., or, if my son does not survive me, to his issue per stirpes.~ I specifically request that any beneficiary hereunder provide ou[ of assets re~ei ved hereunder such amounts as are needed for my mother, Sara J. Stanton, and niy husband's mother, M. Elizabeth Thomas, to enable them to lead comfortable lives, or as needed for emergencies, to the extent that funds are not available elsewhere (such as through Medicare or Medicaid), as long as t}-.ey shall live. 3. Survival. If any beneficiary should die within sixty (60) days after me, then he or she shall be deemed to have predeceased me for all purposes of this will. 4. Spendthrift Clause. No interest of any beneficiary hereunder shall be subject to anticipation, pledge, assignment, sale or transfer in any manner, nor shall any beneficiary have power in any manner to charge or encu.nber his or her interest, nor shall the interest of any beneficiary be 1iabLe or subject in any manner while in the possession of my fiduciaries for any Liability of such beneficiary, whether such liability arises from his or her ~3ebts, contracts, torts, or other engagements of any type. 5. Trust for Minor Beneficiary. If any beneficiary hereunder is under the .ige of twenty-five (25) years, his or her share shall be retained by my exzciicor as trustee in trust until such beneficiary has attained said age. During the period of the trust, there shall be distributed to the beneficiary such portions of income or principal as may, in the sole discretion of the t r~is c:ee, be necessary for his or her support, education or to meet needs of an zmerp;e ncy nature, such as those arising from serious illness or accident, taking into account such other sources of support as may he available. The :o •:ai amount due the beneficiary shall be paid to him or her iohen he or she at':ains the age of t•.aenty-five (25), and, if he or she dies prior to such age, such amount shall be paid to his or her estate. 2 - 6. Facility of Payment for Minors or Incompetents. Any amounts cr assets which are payable or distributable to a minor or incompetent hereunder may, at the discretion of my fiduciaries, be paid or distributed to the parent or guardian of such minor or incompetent, to the person with whom such minor or incompetent resides, or directly to such minor or incompetent, or may be applied for the use or benefit of such minor or incompetent. 7. Powers. In additioxx to such other powers and duties as may be granted elsewhere herein or which may be granted by law, my fiduciaries he render shall have the following powers and duties, without the necessity of noti:e to or consent of any court: (a) To retain all or any part of my property, real or personal, in [he form in which it may be held at the time of its receipt, including any closely held business in which I have an interest and the stock of any corporate fiduciary hereunder, as long as in the exercise of their discretion it may be advisable so to do, notwithstanding that said property may not be of a charac- ter authorized by law. (b) To im•est and reim•est any funds held hereunder in any property, real or persona]., including, but not by way of limita- tion, bonds, preferred stocks, common stocks and other securities of domestic or foreign corporations or investment trusts, mort- gages or mortgage participations, mutual funds with or without sales or redemption charges, and common trust funds, even though such property would not be. considered appropriate or legal for a fiduciary apart from this provision. (c) To sell, convey, exchange, partition, give options to buy or lease upon, or otherwise dispose of any property, real or personal, at the time held by them, at public or private sale or otherwise, for cash or other consideration or on credit, and upon such terms and for such price as they may determine, and to convey such property free of all crusts. (d) To borrow money from any person, including any fiduci- ary hereunder, for any purpose in connection with the administra- tion hereof. [o execute promissory notes or other obligations for amounts so borrowed, to secure the payments of such amounts h}' 3 - mortgages or pledges of any property, real or personal, which may be held hereunder. (e) To make loans, secured~or unsecured, in such amounts, upon such terms, at such rates of interest, and to such persons, firms, or corporations as they may deem advisable.. (f) To renew or extend the time for payment of any obliga- tion, secured or unsecured, payable to or by them as fiduciaries, for as long a period or periods of time and on such terms, as they may determine, and to adjust, settle, and arbitrate claims or demands in favor of or against them. (g) In dividing or distributing any property, real or personal, included herein, to divide or distribute in cash, in kind, or partly in cash and partly in kind. (h) Without limitation of powers elsewhere granted therein, to hold, manage and develop any real estate which may be held by them at any time, to mortgage any such property in such amounts and on such terms as they may deem advisable, to lease any such property for such term or terms and upon such conditions and rentals as they may deem e~dvisable, whether or not the term of any such lease shall exceed tYie period permitted by law or the probable period of re tenti.on under this instrument; to make repairs, replacements and improvements, structural or otherwise, in connection with any such property, to abandon any such prop- erty which they may deem to be worthless or not of sufficient value to warrant keeping cr protecting, and to permit any such property to be lost by tax. sale or any other proceedings. (i) To employ such. brokers, banks-, custodians, investment counsel, attorneys, and other agents, and to delegate to them such duties, rights and powers as they may determine, and for such periods as they think fit. (j) To register any securities at any time in their own names, in their names as fiduciary, or in the names of nominees, •aith or without indicating the trust character of the securities so registered. (k) With respect to any securities forming a part of the trust, to vote upon any proposition or election at any meeting of the corporation issuing such securities, and to grant proxies, discretionary or otherwise, to vote at any such meeting; to join or become a party to any reorganization, readjustment, merger, voting trust, consolidation or exchange, and to deposit any such securities with any committee, depository, trustee or otherwise, and to pay out of the assets held hereunder, any fees, expenses - 4 - end assessments incurred i.n connection therewith, to exercise conversion, subscription cs other rights, and to receive or hold any new securities issued as a result of any such reorganization, readjustment, merger, voting trust, consolidation, exchange or exercise of conversion, subscription or other rights and gen- erally to take all action with respect to any such securities as could be taken by the absolute owner thereof. (1) To engage in sales, leases, loans, and other transac- tions with the estate of niy husband or-any trust established by either of us, even if they are fiduciaries or beneficiaries thereof. (m) To exercise all elections which they may have with respect to income, gift, estate, inheritance and other taxes, including without limitation execution of joint income tax returns, election to deduct expenses in computing one tax or another, election to split: gifts, and election to pay or to defer payment of any tax, in al]. events without their being bound to require contribution from any other person. (n) To operate, own, or develop any business or property held hereunder in any form, including without limitation sole proprietorship, limited ox' general partnership, corporation, association, tenancy in common, condominium, or any other, whether or not they have restricted or no management rights, as they in their discretion think be;:t. 8. Taxes. I direct that all estate, inheritance, and succession taxes that may be assessed in consequence of my death, of whatever nature and by whatever jurisdiction imposed, other than generation-skipping taxes, shall be p.iid out of the principal of my general estate to the same effect as if said taxes were expenses of administration, except that any such additional caxe:; (and interest and penalties thereon) imposed on account of my interest in o- power over any trust established by my husband shall be paid out of the property held in such trust, anc. all other property includible in my taxable es ta~:e for federal or state tax purposes, •ahether or not passing under this will shall be free and clear thereof; provided, however, that my executor may in t}~e discretion of my executor request that any portion or all of said taxes 5 - (to lie paid out of the principal. of my general estate) shall instead be paid out of the principal of any trust established by me, to the extent expressly auth~~rized under the terms of said trust. 9. Fiduciaries. I appoint as executor hereunder my husband, Thomas G. L:ddick, Sr. If he should be unable or unwilling to serve or to complete the .administration of my estate, then my son, Thomas J. Liddick, Jr., shall serve in his place. If he should be unable or unwilling to serve, then Gwendolyn J. Shelly, of Wormleysburg, Pennsylvania, shall serve in his place. No Individual fiduciary shall be liable for the acts, omissions or defaults of a;~y agent appointed and retained with due care or of any co-fiduciary. No fidu~:iary named herein shall be required to furnish bond or other security for the proper performance of duties hereunder. 10. Gender. Unless the context indicates otherwise, any use of masc~iLine gender herein shall also include the feminine gender. IN WITNESS WHEREOF, I, SALLY J. LIDDICK, herewith set my hand to this, my last Will, typewritten on seven (7) sheets of paper including thneL se lfproving attestation clause and signatures of witnesses, this `i "T'~ day of -~~, 1990. ~~Pr ~, .'~ 2C-Qci ~" ~ ~~C P_c:~GG~ (SEAL) SALLY J. IDDIF'1C Wi me ssed: n \\ A 1 ' n o~~'l~ U ~•-~~ r ~J ~ /~~ iii \ /~` ~~ ~~ ~•~ residing at ~~'~(~ `'.J ~ / , ///f ~}''~/% ~~ t,l //~~L~'(-!~ residing at ~~f~~!I /~-~L~C~ f~ / /,,, i --- residing at ///~/1Q/!,/~1(/.Q~ ~j9 6 COMM )NWEALTH OF PENNSYLVANIA COUN LY OF DAUPHIN SS: l~ SAL J. DDICK, (the testatrix) t~'7~4J ~4/2Cu C( P1 ~" `(6«(,j~ `"i) X +JO ~ ~( ~~ 'F~ and ~?~j(L(~C fry, ,C~/![tn - (the witnesses j", whose names are signed to the foregoing instrument,- eing first duly sworn, each hereby declares to the undersigned authority that the testatrix signed and executed the instrument as her last will-in the presence of the witnesses and that she had signed willingly, and that she executed it as her free and voluntary act for the purposes therein expressed, and that each of the witnesses, in the presence and hearing of the testatrix, signed the will as witnass and that to the best of his or her knowledge the testatrix was at that time eighteen years of age or o]-der, of sound mind and under no constraint or undue influence. WITN35S: TESTATRIX: 1\ \ I, ~1 t~~ ~ 4~ . -`L!~`A-n_..v\ vL 1y CL.Q ~~~`4~~--9 /~21~E~.G.C~ SALLY J. ~lUll1~ WITN ?SS: WITNESS: Suosr.ribed, sworn to and acknowledged before me by SALLY J. LIDDICK, the testatrix,/and subscribed and sworn to before me by ,{,.QL4 (( ~ll~ ~~~`~Z C'E,1.~7. lam(. )CC (-~. ~~~(~L;i«( and /'~~ ~' _~ ~~(L C_C~a the witnesses, ~'~l L ~( this_~ day of--H,~rc-k;-1990. ,~ --~tLC~L~ t ~C C,~. ~~~,ccv i~~~~~ i Notary Public (SEAL) IiL~ _ i.Y UG _. . I _ 7 STOCK PURCHASE AGREEMENT This STOCK PURCHASE AGREEMENT (this "Agreement") is made and entered into as of December 6, 2012 by and among GWEN SHELLY, TODD SHELLY and ADAM LOHR (each, a "Buyer" and collectively, the "Buyers"), THOMAS G. LIDDICK, SR. (the "Seller"), BARKLEIGH PRODUCTIONS, INC., a Pennsylvania corporation ("Productions"), and BARKLEIGH MANAGEMENT GROUP, INC., a Pennsylvania corporation ("Management"). Background A. During her lifetime, Sally J. Liddick ("Sally") owned: (i) 490 shares of common stock of Productions (the "Productions Shares"); and (ii) 50 shazes of common stock of Management (the "Management Shares"). The Productions Shazes and the Management Shazes shall be collectively referred to in this Agreement as the "Shares". B. Sally died testate on January 29, 2012. Seller was the surviving spouse of Sally and the beneficiary of the Shazes upon her death. Seller now holds good and mazketable title to the Shares. C. The Seller desires to sell to the Buyers, and the Buyers desire to purchase from Seller, all of the Shazes pursuant to the terms and conditions of this Agreement. Agreement In consideration ofthe foregoing background, which isincorporated herein by reference, and of the representations, warranties, covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, and intending to be legally bound, the parties agree as follows. ARTICLE I SALE AND PURCHASE OF SHARES 1.1 Purchase Price of the Shares. Upon the consummation of the transactions contemplated by this Agreement (the "Closing"), the Seller agrees to sell, convey, assign, deliver, and transfer to Buyers, and Buyers agree to purchase and assume from the Seller, all of the Seller's right, title and interest in and to all of the Shares. The Purchase Price for the Shares shall be $300,000.00 (the "Purchase Price"). 1.2 Convevance of the Shazes. At the Closing, Seller shall convey good and marketable title to the Shares to the Buyers, free and cleaz of any and all liens, pledges, security interests, restrictions, claims or encumbrances of any kind or nature (individually and collectively, "Encumbrances"). 1.3 Allocation of Shares. Each Buyer shall purchase their portion of the Shazes and pay their portion of the Purchase Price as follows: 1.3 Allocation of Shares. Each Buyer shall purchase their portion of the Shares and pay their portion of the Purchase Price as follows: Buyer Number of Productions Shares Being Purchased Purchase Price of Productions Shares Number of Management Shares Being Purchased Purchase Price of Management Shares Total Purchase Price due om B er Gwen Shelly 10 $5,020 0 $0 $5,020 Adam Lohr 240 $120,490 25 $27,000 5147,490 Todd Shelly 240 $120,490 25 $27,000 $147,490 Total 490 $246,000 50 $54,000 $300,000 1.4 Payment of the Purchase Price. At the Closing, each Buyer shall pay their portion of the Purchase Price as follows: (a) Gwen Shelly shall deliver a promissory note to Seller in the amount of $5,020, substantially in the form attached as Exhibit A, which promissory note shall be amortized over 15 years and, beginning January 31, 20] 3, shall require monthly payments in arreazs in the amount of $39.70; (b) Adam Lohr shall deliver a promissory note to Seller in the amount of $147,490, substantially in the form attached as Exhibit B, which promissory note shall be amortized over 15 years and, beginning January 31, 2013, shall require monthly payments in aneazs in the amount of $1,166.34; and (c) Todd Shelly shall deliver a promissory note to Seller in the amount of $147,490, substantially in the form attached as Exhibit C which promissory note shall be amortized over 15 yeazs and, beginning January 31, 2013, shall require monthly payments in arrears in the amount of $1,166.34. For accounting purposes, the parties acknowledge and agree that, in satisfaction of the three monthly payments due to Seller pursuant to the aforementioned promissory notes, Productions may (but shall not be required to) offset any compensation due and owing to the Buyers during such month and make a single monthly payment to Seller in the amount of $2,372.38. ARTICLE R CLOSING 2.1 Closine. Closing shall occur on or before December 31, 2012 (the "Closing Date") at a location which is mutually agreeable to the parties. Notwithstanding the foregoing or anything to the contrary set forth herein, the Closing shall be effective for all intents and purposes as of 11:59 pm on December 31, 2012 (the "Effective Time"). 2 2.2 Conditions Precedent to the Obligation of Buyers to Close. The obligations of Buyers to consummate the transactions contemplated by this Agreement aze subject to satisfaction of each of the following conditions on or before the Closing Date: (a) Share Certificates. The Seller shall have delivered each of the stock certificates evidencing the Shares, duly endorsed in blank and accompanied by appropriate instruments of transfer. (b) ConsultinrAQreement. Seller shall have executed and delivered a Consulting Agreement to Productions and Management, which shall have a 15 yeaz term, shall require monthly payments of $1,000.00 to be made to Seller throughout the term thereof and shall be substantially in the form attached as Exhibit D (the "Consulting Agreement"). Pursuant to the Consulting Agreement, Seller shall agree: (i) to provide consulting and post- Closing transition services to Productions and Management on an as-needed basis; and (ii) not to compete with Productions during the term of the Consulting Agreement and for a period of one year thereafter. The parties acknowledge and agree that the Consulting Agreement is a material inducement for each of the Buyers to enter into this Agreement and that the Buyers would not have entered into this Agreement without Seller agreeing to the terms and conditions of the Consulting Agreement. (c) Representations and Warranties ofthe Seller. The representations and warranties of the Seller contained in this Agreement shall be true and correct on and as of the Closing Date as though such representations and warranties were made on the Closing Date. (d) Performance of Covenants and Agreements. The Seller shall have performed and complied with all covenants, agreements and conditions required to be performed by or complied with by the Seller prior to or at the Closing, in accordance with the terms and conditions of this Agreement. (e) Further Assurances. Buyers shall have received such further instruments and documents as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained and the performance of all conditions to the consummation of such transactions. 2.3 _Conditions Precedent to the Obligation of the Seller to Close. The obligations of the Seller to consummate the transactions contemplated by this Agreement are subject to satisfaction of each of the following conditions on or before the Closing Date: (a) Purchase Price. Buyers shall have paid the Purchase Price by delivering the three promissory notes required in accordance with Section 1.4, (b) Consultive Aereement. Productions and Management shall have each executed and delivered the Consulting Agreement to Seller. (c) Performance of Covenants and Agreements. Buyers shall have performed and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by Buyers prior to or at the Closing. (d) Further Assurances. The Seller shall have received such further instruments and documents as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein contained and the performance of all conditions to the consummation of such transactions. ARTICLE IH REPRESENTATIONS AND WARRANTIES OF THE SELLER The Seller hereby makes the following representations and warranties to Buyers, each of which is true and correct on the date hereof and shall be true and correct on the Closing Date. 3.1 Capitalization. The Productions Shazes represent the Seller's entire ownership interest in Productions, and the Management Shazes represent the Seller's entire ownership interest in Management. All of the Shares are duly authorized, validly issued, fully paid and non-assessable. No third-party has any call right, redemption right, purchase option or other right of any kind with regazd to the Shazes. 3.2 Title to Shares. The Seller is the sole record and beneficial owner of the Shares and has full right and title to the Shares and full and unrestricted right, power and authority to sell, assign, transfer and deliver the Shazes to the Buyers. The Shares aze free and clear of any and all Encumbrances. 3.3 Agreement Legal and Authorized. The execution and delivery of this Agreement does not, and the consummation by Seller of the transactions contemplated herein will not: (a) conflict with, or result in a breach of any of the terms, conditions or provisions of, or constitute a default under the Articles of Incorporation or the Bylaws of Productions or Management; or (b) conflict with, violate or result in a breach of any law, administrative regulation or court decree applicable to the Company or Seller. 3.4 Valid and Binding Oblieation. The Seller has the right, power and authority to enter into and perform its obligations under this Agreement. This Agreement constitutes a valid, binding and enforceable obligation of the Seller. 3.5 Liti ation. There is no suit, claim, action or proceeding now pending or, to the knowledge of Seller, threatened before any court, administrative or regulatory body, or any governmental agency, to which Seller, Productions or Management is a party or which may result in any judgment, order, decree, liability or other determination which could prevent the consummation of the transactions contemplated by this Agreement. 3.6 Inheritance Tax Paid. Seller will promptly file a Pennsylvania Inheritance Tax return and will pay all Pennsylvania inheritance tax, interest, and penalties due and owing as a result of Sally's death. 4 3.7 Federal Estate Tax. Seller is not required to file a federal estate tax return as a result of Sally's death and no federal estate tax is due as a result of Sally's death. 3.8 Disclosure. No representation or warranty of Seller in this Agreement omits to state a material fact necessary to make the statements herein, in light of the circumstances in which they were made, not misleading. 3.9 Survival of Representations and Warranties. The representations and warranties contained in this Agreement shall survive the execution and delivery of this Agreement. ARTICLE IV MUTUAL RELEASE 4.1 Release by the Seller Parties. In consideration for the Purchase Price and the other covenants and agreements of the Buyers, Productions and Management set forth in this Agreement and the Consulting Agreement, Seller, on behalf of itself and its successors, assigns, subrogees, insurers, beneficiaries, executors, fiduciaries attorneys and agents, and any and all other persons claiming by or through Seller (collectively, the "Seller Parties"), hereby releases, remises, and forever discharges each of the Buyers, Productions, Management and each of their respective successors, assigns, officers, directors, shareholders, subrogees, insurers, beneficiaries, executors, fiduciaries attorneys and agents, and any and all other persons claiming by or through Bazkleigh (collectively, the "Barkleigh Parties"), from any and all actions, causes of action, claims, counterclaims, crossclaims, demands, rights, suits, debts, contracts, agreements, demands for contribution, demands for indemnity, damages, costs, expenses, commissions, and compensation of any nature whatsoever, whether known or unknown, fixed or contingent, and whether at law or in equity (collectively, "Claims"), that accrued or occurred on or before the Effective Time and/or that any Seller Party has or could have asserted against any of the Barkleigh Parties at any time on or before the Effective Time, including without limitation, any Claims arising out of or related to (a) Sally's ownership of the Shares prior to her death, (b) Sally's employment with Productions and/or Management prior to her death, and (c) Seller's ownership of the Shazes prior to the Effective Time. 4.2 Release by the Bazklei¢h Parties. In consideration of the Shares and the other representations, warranties, covenants and agreements of Seller set forth in this Agreement, Productions, Management and each of the Buyers, on behalf of itself and the other Barkleigh Parties, hereby releases, remises, and forever dischazges the Seller Parties from any and all Claims that accrued or occurred on or, before the Effective Time and/or that any Barkleigh Party has or could have asserted against any of the Seller Parties at any time on or before the Effective Time. 4.3 No Release of Claims under this Agreement. For the avoidance of doubt, nothing in this Article IV will be deemed a release, remise or dischazge of any Claims that arise out of or relate to (a) a breach of any representation, warranty, covenant or agreement set forth in this Agreement or (b) events that occur after the Effective Time. 4.4 Final Resolution. It is the intent of the parties that this Agreement constitute a full and final resolution of any and all Claims: (a) that accrued or occurred on or before the Effective Time; (b) that any Seller Party has or could have asserted against any of the Barkleigh Parties at any time on or before the Effective Time; and (c) that any Bazkleigh Party has or could have asserted against any of the Seller Parties at any time on or before the Effective Time ARTICLE V MISCELLANEOUS 5.1 Entire Agreement: Modification. This Agreement contains the entire agreement and understanding between the parties with respect to the subject matter hereof and any and all prior agreements or understandings between the parties on the same subject are hereby rescinded and made null and void by mutual agreement. This Agreement may be modified, revised or amended only by a written instrument signed by each of the parties. 5.2 Governing Law, This Agreement, and the application and interpretation hereof, shall be subject to and governed exclusively by its terms and by the laws of the Commonwealth of Pennsylvania, without regard to its conflicts of laws provisions. 5.3 Further Assurances. Each Stockholder shall cooperate and take such action as may be reasonably requested by the Stockholders in order to carry out the provisions and purposes of this Agreement and the transactions contemplated hereby. 5.4 Construction. Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. Unless expressly stated otherwise, Section and Exhibits references herein shall refer to the Sections and Exhibits of this Agreement. 5.5 Waivers. No waiver by any party of the breach of any provision hereof shall be deemed to constitute a waiver of any continuing or subsequent breach of such provision or any other provision hereof. 5.6 Riehts and Remedies Cumulative. Any rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Such rights and remedies aze given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 5.7 Severability. If any provision of this Agreement or the application thereof to any Person or circumstance shall be invalid, illegal or unenforceable to any extent, the remainder of this Agreement and the application thereof shall not be affected and shall be enforceable to the fullest extent permitted by law, provided that the essential purpose of this Agreement is not frustrated. 5.8 Heirs. Successors and Assiens. The covenants,. terms, provisions and agreements herein contained shall be binding upon, and inure to the benefit of, the parties hereto and, except as otherwise provided to the contrary, their respective heirs, executors, administrators, legal representatives, successors and permitted assigns. 5.9 Agreement Drafted by the Productions' Attorney. The parties acknowledge that Productions' counsel, McNees Wallace & Nurick LLC, prepared this Agreement on behalf of, and in the course of its representation of, Productions. Each party has been advised that a conflict of interest may exist between his or her interests and the interests of Productions and the other party. Each party, by signing this Agreement, waives any such conflict and acknowledges that the party has had the opportunity to seek the advice of independent counsel and tax counsel. 5.10 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. Any counterpart signature page delivered by electronic means or by facsimile transmission shall be deemed to have the same force and effect as an originally executed signature page. [SIGNATURES APPEAR ON FOLLOWING PAGE] The parties to this Agreement have caused their signatures, or have caused the signatures of their duly authorized representatives, to be set forth below as of the day and yeaz first above written. SELLER: ~ G ~. Thomas G. Lid ' ~, r. BUYERS: Gwe belly ~~~ ~ Adam Lohr Todd Shelly PRODUCTIONS: BARKLEIGH PRODUCTIONS, INC. By: en belly, Presiden MANAGEMENT: BARKLEIGH MANAGEMENT GROUP, INC. By: en Shelly, Presid' Signature Page to Stock Purchase Agreement PROMISSORY NOTE $5,020.00 December 31, 2012 FOR VALUE RECEIVED, GWEN SHELLY, an adult individual residing a[ 51 Longwood Drive, Mechanicsburg PA 17050 ("Debtor"), hereby promises to pay to THOMAS G. LIDDICK, SR., an adult individual residing at 49 Longwood Drive, Mechanicsburg, PA 17050 ("Creditor"), the principal amount of $5,020.00 (the "Principal Amount") in ]awful money of the United States of America, together with interest on the outstanding balance of the Principal Amount which shall commence to accrue on the date hereof, pursuant to the terms and conditions of this Promissory Note (this "Note"). This Note is being delivered pursuant to and in accordance with Section 1.4(a) of that certain Stock Purchase Agreement by and among, Debtor as seller, Creditor as buyer, and other parties (the "Stock Purcbase Agreement"). Capitalized terms used in this Note which are not otherwise defined shall have the respective meanings assigned to them in the Stock Purchase Agreement. 1. Interest Rate. Commencing on the date hereof and continuing through and including the Maturity Date (as defined below), the outstanding balance of the Principal Amount shall bear interest at a fixed rate of 5.0% per annum. 2. Payments of Principal and Interest. 2.1 Principal and Interest Period. Beginning on January 31, 2013 and continuing on the last day of each month thereafter throughout the term of this Note, Debtor shall pay Creditor the sum of $39.70, in arrears, being an amount sufficient to fully amortize the Principal Amount, together with interest thereon, over a period of 15 years, in accordance with the Amortization Schedule attached hereto as Exhibit A. 2.2 Maturity Date. Notwithstanding the foregoing or anything to the contrary set forth in this Note, the Principal Amount, together with all accrued but unpaid interest thereon, shall be immediately due and payable, without notice, demand or presentment, on December 31, 2026 (the "Maturity Date"). 2.3 Prepayments. The indebtedness evidenced by this Note may be prepaid in whole or in part at any time, and from time to time, without penalty or premium. Each such prepayment shall first be applied against accrued but unpaid interest and second against principal. 3. Eveuts of Default. The occurrence of any of the following events shall constitute an event of default (each individually, an "Event of Default"): 3.1 The failure by Debtor to make any payment hereunder within twenty (20) days of its due date; 3.2 The filing by or against Debtor, Productions or Management of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against Debtor, Productions or Management, such proceeding is not dismissed or stayed within one hundred twenty (120) days of the commencement thereof); 3.3 A default with respect to any other indebtedness of Debtor, Productions or Management for borrowed money in excess of $100,000.00; 3.4 the occurrence of an "Event of Default" with respect to (a) a certain Promissory Note of even date herewith in the original principal amount of $147,490.00, by Adam Lohr as debtor in favor of Creditor, or (b) a certain Promissory Note of even date herewith in the original principal amount of $147,490.00, by Todd Shelly as debtor in favor of Creditor; 3.5 The entry of a final judgment against Debtor, Productions or Management in excess of $100,000.00 and the failure of Debtor, Productions or Management to discharge the judgment or otherwise bond off any judgment lien resulting therefrom within one hundred twenty (120) days of the entry thereof; 3.6 Productions ceases doing business as a going concern; and 3.7 The failure by Productions to make any payment when due pursuant to a certain Consulting Agreement of even date herewith, by and between Creditor and Productions. 4. Remedies. Upon the occurrence of any Event of Default, Creditor, at Creditor's option, may declare the entire remaining unpaid Principal Amount, together with all accrued but unpaid interest thereon, to be due and payable without notice, demand or presentment, and exercise all other rights and remedies Creditor may have at law or in equity. The remedies provided for in this Note shall be cumulative and concurrent and may be pursued singly, successively or together against Debtor at the sole discretion of Creditor, and such remedies shall not be exhausted by any exercise thereof. 5. Power to Confess Jud¢ment. Debtor hereby empowers any attorney of any court of record, after the occurrence and during the continuance of an Event of Default, to appear for Debtor and, with or without complaint filed, confess judgment, or a series of judgments, agaiust Debtor in favor of Creditor or any holder hereof for the eutire outstanding Principal Amount, together with accrued but unpaid interest thereon, costs of suit and an attorneys' commission of $5,000.00 added as a reasonable attorneys' fee, and for doing so, this Note or a copy verified by affidavit shall be a sufficient warrant. Debtor hereby forever waives and releases all errors in said proceedings and all rights of appeal and all relief from any and all appraisement, stay or exemption laws of any jurisdiction now in force or hereafter enacted. Interest on the principal balance of the judgment shall accrue at a per annum rate of 10.0%. No single exercise of the foregoing power to confess judgment, or a series of judgments, shall be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void, but the power shall continue undiminished and it may be exercised from time to time as often as Creditor shall elect until such time as Creditor shall have received payment in full of the debt, interest and costs. Notwithstanding the attorneys' commission provided for in the preceding paragraph (which is included in the warrant for purposes of establishing a sum certain), the amount of attorneys' fees that Creditor may recover from Debtor shall not exceed the aMual attorneys' fees incurred by Creditor. 6. General Contract Provisions. 6.1 Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing and will be effective upon receipt. Such notices and other communications may be hand-delivered, sent by facsimile transmission with confirmation of delivery and a copy sent by first-class mail, or sent by nationally recognized overnight courier service, to the addresses for Creditor and Debtor set forth above or to such other address as either may give to the other in writing for such purpose. 6.2 Amendments. No modification, amendment or waiver of any provision of this Note or consent to any departure by Debtor therefrom will be effective unless made in a writing signed by both Debtor and Creditor. 6.3 Severabiliri. If any provision of this Note is found to be invalid by a court of law, all the other provisions ofthis Note will remain in full force and effect. 6.4 Successors. Heirs and Assiens. This Note shall bind Debtor and his successors, heirs and permitted assigns, and the bene5ts hereof shall inure to the benefit of Creditor and his successors, heirs and permitted assigns; provided, however, that neither Creditor nor Debtor may assign this Note in whole or in part without the other party's prior written consent. 6.5 Governing Law. This Note has been delivered to and accepted by Creditor and will be deemed to be made in the Commonwealth of Pennsylvania. This Note will be interpreted and the rights and liabilities of Debtor and Creditor determined in accordance with the laws of the Commonwealth of Pennsylvania, excluding its conflicts of laws rules. 6.6 Venue. Debtor hereby irrevocably consents to the exclusive jurisdiction of the Court of Common Pleas of Cumberland County, Pennsylvania; provided that nothing contained in this Note will prevent Creditor from bringing any action, enforcing any award orjudgment or exercising any rights against Debtor, against any security or against any property of Debtor within any other county, state or other foreign or domestic jurisdiction. Debtor acknowledges and agrees that the venue provided above is the most convenient forum for both Debtor and Creditor. Debtor waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note. 6.7 No Presumotion. Debtor and Creditor have participated jointly in the negotiation and drafting ofthis Note and, in the event an ambiguity or question of intent or interpretation arises, this Note shall be construed asjointly drafted by Debtor and Creditor and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any provision ofthis Note. 7. Waiver of Jurv Trial. Debtor irrevocably waives any and all rights Debtor may have to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection with this Note or any transaction contemplated in any of such documents. Debtor acknowledges that the foregoing waiver is knowing and voluntary. [SIGNATURE APPEARS ON FOLLOWING PAGE] WITNESS the due execution of this Note as of the date first written above, with the intent to be legally bound hereby. WITNESS: DEBTOR: Gwen Shelly Signature Page to Promissory Note Printable Amortization Schedule Loan Summa Pa ment Summa Principal: $5020 Number of Payments: Interest Rate: 5% Monthly Payment: Loan Term: 15 years Total Principal Paid: Total Interest Paid: Total Pald: Monthv Amortization Schedule http: /lwww.myamortizationchart.com/display/printable•amortizati on... 180 $5,020.00 $2,125.61 $7,145.61 Payment 1 Amount $39.70 Principal $18.78 Interest $20.92 Balanc $5,001.22 2 $39.70 $18.66 $20.84 $4,982.36 3 $39.70 $18.94 $20.76 $4,963.42 4 $39.70 $19.02 $20.68 $4,944.40 5 $39.70 $19.10 $20.60 $4,925.31 6 $39.70 $19.18 $20.52 $4,906.13 7 $39.70 $19.26 $20.44 $4,866.88 8 $39.70 $19.34 $20.36 $4,867.54 9 $39.70 $19.42 $20.28 $4,848.12 10 $39.70 $19.50 $20.20 $4,828.63 11 $39.70 $19.58 $20.12 $4,809.05 12 $39.70 $19.66 $20.04 $4,789.39 13 $39.70 $19.74 $19.96 $4,769.65 14 $39.70 $19.82 $19.87 $4,749.82 15 $39.70 $19.91 $19.79 $4,729.92 16 $39.70 $19.99 $19.71 $4,709.93 17 $39.70 $20.07 $19.62 $4,689.85 18 $39.70 $20.16 $19.54 $4,669.70 19 $39.70 $20.24 $19.46 $4,649.45 20 $39.70 $20.33 $19.37 $4,629.13 21 $39.70 $20.41 $19.29 $4,608.72 22 $39.70 $20.49 $19.20 $4,588.23 23 $39.70 $20.58 $19.12 $4,567.64 24 $39.70 $20.67 $19.03 $4,546.98 25 $39.70 $20.75 $18.95 $4,526.23 26 $39.70 $20.84 $18.86 $4,505.39 27 $39.70 $20.93 $18.77 $4,484.46 28 $39.70 $21.01 $18.69 $4,463.45 29 $39.70 $21.10 $18.60 $4,442.35 1 of 5 12/72012 12:19 PM Printable Amortization Schedule http://www.myamortizationchart.com/display/printable-amortization... 30 $39.70 $21.19 $18.51 $4,421.16 31 $39.70 $21.28 $18.42 $4,399.89 32 $39.70 $21.36 $18.33 $4,378.52 33 $39.70 $21.45 $18.24 $4,357.07 34 $39.70 $21.54 $18,15 $4,335.52 35 $39.70 $21.63 $18.06 $4,313.89 36 $39.70 $21.72 $17.97 $4,292.17 37 $39.70 $21.81 $17.88 $4,270.35 38 $39.70 $21.90 $17.79 $4,248.45 39 $39.70 $22.00 $17.70 $4,226.45 40 $39.70 $22.09 $17.61 $4,204.36 41 $39.70 $22.18 $17.52 $4,182.19 42 $39.70 $22.27 $17,43 $4,159.91 43 $39.70 $22.36 $17.33 $4,137.55 44 $39.70 $22.46 $17.24 $4,115.09 45 $39.70 $22.55 $17.15 $4,092.54 46 $39.70 $22.65 $17.05 $4,D69.89 47 $39.70 $22.74 $16.96 $4,047.15 48 $39.70 $22.83 $16.86 $4,024.32 49 $39.70 $22.93 $16.77 $4,001.39 50 $39.70 $23.03 $16.67 $3,978.36 51 $39.70 $23.12 $16.58 $3,955.24 52 $39.70 $23.22 $16.48 $3,932.02 53 $39.70 $23.31 $16.38 $3,908.71 54 $39.70 $23.41 $16.29 $3,885.30 55 $39.70 $23.51 $16.19 $3,861.79 56 $39.70 $23.61 $16.09 $3,838.18 57 $39.70 $23.71 $15.99 $3,814.48 58 $39.70 $23.80 $15.89 $3,790.67 59 $39.70 $23.90 $15.79 $3,766.77 60 $39.70 $24.00 $15.69 $3,742.77 61 $39.70 $24.10 $15.59 $3,718.66 62 $39.70 $24.20 $15.49 $3,694.46 63 $39.70 $24.30 $15.39 $3,670.16 64 $39.70 $24.41 $15.29 $3,645.75 65 $39.70 $24.51 $15.19 $3,621.24 66 $39.70 $24.61 $15.09 $3,596.63 67 $39.70 $24.71 $14.99 $3,571.92 2 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http://www.myam ortizationchart.com/display/printable-amortization... 68 $39.70 $24.81 $14.88 $3,547.11 69 $39.70 $24.92 $14.78 $3,522.19 70 $39.70 $25.02 $14.68 $3,497.17 71 $39.70 $25.13 $14.57 $3,472.04 72 $39.70 $25.23 $14.47 $3,446.81 73 $39.70 $25.34 $14.36 $3,421.47 74 $39.70 $25.44 $14.26 $3,396.03 75 $39.70 $25.55 $14.15 $3,370.48 76 $39.70 $25.65 $14.04 $3,344.83 77 $39.70 $25.76 $13.94 $3,319.07 78 $39.70 $25.87 $13.83 $3,293.20 79 $39.70 $25.98 $13.72 $3,267.22 80 $39.70 $26.08 $13.61 $3,241.14 81 $39.70 $26.19 $13.50 $3,214.95 82 $39.70 $26.30 $13.40 $3,188.64 83 $39.70 $26.41 $13.29 $3,162.23 84 $39.70 $26.52 $13.18 $3,135.71 65 $39.70 $26.63 $13.07 $3,109.08 86 $39.70 $26.74 $12.95 $3,082.33 87 $39.70 $26.85 $12.84 $3,055.48 88 $39.70 $26.97 $12.73 $3,028.51 89 $39.70 $27.08 $12.62 $3,001.43 90 $39.70 $27.19 $12.51 $2,974.24 91 $39.70 $27.31 $12.39 $2,946.94 92 $39.70 $27.42 $12.28 $2,919.52 93 $39.70 $27.53 $12.16 $2,891.98 94 $39.70 $27.65 $12.05 $2,864.34 95 $39.70 $27.76 $11.93 $2,836.57 96 $39.70 $27.88 $11.82 $2,808.70 97 $39.70 $27.99 $11.70 $2,780.70 98 $39.70 $28.11 $11.59 $2,752.59 99 $39.70 $28.23 $11.47 $2,724.36 100 $39.70 $28.35 $11.35 $2,696.01 101 $39.70 $28.46 $11.23 $2,667.55 102 $39.70 $28.58 $11.11 $2,638.97 103 $39.70 $28.70 $11.00 $2,610.26 104 $39.70 $28.82 $10.88 $2,581.44 105 $39.70 $28.94 $10.76 $2,552.50 3 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http: //www.myamortiza[ionchart.com/display/printable-amortization... 106 $39.70 $29.06 $10.64 $2,523.44 107 $39.70 $29.18 $10.51 $2,494.25 108 $39.70 $29.31 $10.39 $2,464.95 109 $39.70 $29.43 $10.27 $2,435.52 110 $39.70 $29.55 $10.15 $2,405.97 111 $39.70 $29.67 $10.02 $2,376.30 112 $39.70 $29.80 $9.90 $2,346.50 113 $39.70 $29.92 $9.78 $2,316.58 114 $39.70 $30.05 $9.65 $2,286.54 115 $39.70 $30.17 $9.53 $2,256.37 116 $39.70 $30.30 $9.40 $2,226.07 117 $39.70 $30.42 $9.28 $2,195.65 118 $39.70 $30.55 $9.15 $2,165.10 119 $39.70 $30.68 $9.02 $2,134.42 120 $39.70 $30.80 $8.89 $2,103.62 121 $39.70 $30.93 $8.77 $2,072.68 122 $39.70 $31.06 $8.64 $2,041.62 123 $39.70 $31.19 $8.51 $2,010.43 124 $39.70 $31.32 $8.38 $1,979.11 125 $39.70 $31.45 $8.25 $1,947.66 126 $39.70 $31.58 $8.12 $1,916.08 127 $39.70 $31.71 $7.98 $1,884.36 128 $39.70 $31.85 $7.85 $1,852.52 129 $39.70 $31.98 $7.72 $1,820.54 130 $39.70 $32.11 $7.59 $1,788.42 131 $39.70 $32.25 $7.45 $1,756.18 132 $39.70 $32.38 $7.32 $1,723.80 133 $39.70 $32.52 $7.18 $1,691.28 134 $39.70 $32.65 $7.05 $1,658.63 135 $39.70 $32.79 $6.91 $1,625.84 136 $39.70 $32.92 $6.77 $1,592.92 137 $39.70 $33.06 $6.64 $1,559.86 138 $39.70 $33.20 $6.50 $1,526.66 139 $39.70 $33.34 $6.36 $1,493.33 140 $39.70 $33.48 $6.22 $1,459.85 141 $39.70 $33.62 $6.08 $1,426.23 142 $39.70 $33.76 $5.94 $1,392.48 143 $39.70 $33.90 $5.80 $1,358.58 4 of 5 12/7/20 ]2 ] 2:19 PM Printable Amortization Schedule http://www.myamortizationchart.com/display/printable-amortization... 144 $39.70 $34.04 $5.66 $1,324.55 145 $39.70 $34.18 $5.52 $1,290.37 146 $39.70 $34.32 $5.38 $1,256.05 147 $39.70 $34.46 $5.23 $1,221.58 148 $39.70 Asa R~ m~ nn Q.. e~ ,.-. 149 $39.70 $34.75 $4.95 $1,152.22 150 $39.70 $34.90 $4.80 $1,117.32 151 $39.70 $35.04 $4.66 $1,082.28 152 $39.70 $35.19 $4.51 $1,047.09 153 $39.70 $35.33 $4.36 $1,011.76 154 $39.70 $35.48 $4.22 $976.28 155 $39.70 $35.63 $4.07 $940.65 156 $39.70 $35.78 $3.92 $904.87 157 $39.70 $35.93 $3.77 $868.94 158 $39.70 $36.08 $3.62 $832.86 159 $39.70 $36.23 $3.47 $796.64 160 $39.70 $36.38 $3.32 $760.26 161 $39.70 $36.53 $3.17 $723.73 162 $39.70 $36.68 $3.02 $687.05 163 $39.70 $36.84 $2.86 $650.21 164 $39.70 $36.99 $2.71 $613.22 165 $39.70 $37.14 $2.58 $576.08 166 $39.70 $37.30 $2.40 $538.78 167 $39.70 $37.45 $2.24 $501.33 168 $39.70 $37.81 $2.09 $463.72 169 $39.70 $37.77 $1.93 $425.95 170 $39.70 $37.92 $1.77 $388.03 171 $39.70. $38.08 $1.62 $349.95 172 $39.70 $38.24 $1.46 $311.71 173 $39.70 $38.40 $1.30 $273.31 174 $39.70 $38.56 $1.14 $234.75 175 $39.70 $38.72 $0.98 $196.03 176 $39.70 $38.88 $0.82 $157.15 177 $39.70 $39.04 $0.65 $118.11 178 $39.70 $39.21 $0.49 $78.90 179 $39.70 $39.37 $0.33 $39.53 180 $39.70 $39.53 $0.16 $0.00 Totals $7,145.61 55,020.00 $2,125.61 _. 5 of 5 12/7/2012 12:19 PM PROMISSORY NOTE $147,490.00 December 3 I , 2012 FOR VALUE RECEIVED, ADAM LOHR, an adult individual residing at 203 Southside Drive Newville, PA 17241(`Debtor"), hereby promises to pay to THOMAS G. LIDDTCK, SR., an adult individual residing at 49 Longwood Drive, Mechanicsburg, PA 17050 ("Creditor"), the principal amount of $147,490.00 (the "Principal Amount") in lawful money of the United States of America, together with interest on the outstanding balance of the Principal Amount which shall commence to accrue on the date hereof, pursuant to the terms and conditions of this Promissory Note (this "Note"). This Note is being delivered pursuant to and in accordance with Section 1.4(b) of that certain Stock Purchase Agreement by and among, Debtor as seller, Creditor as buyer, and other parties (the "Stock Purchase Agreement"). Capitalized terms used in this Note which are not otherwise defined shall have the respective meanings assigned to them in the Stock Purchase Agreement. 1. Interest Rate. Commencing on the date hereof and continuing through and including the Maturity Date (as defined below), the outstanding balance of the Principal Amount shall bear interest at a fixed rate of 5.0% per annum. 2. Payments of Principal and Interest. 2.1 Principal and Interest Period. Beginning on January 31, 2013 and continuing on the last day of each month thereafter throughout the term of this Note, Debtor shall pay Creditor the sum of $1,166.34, in arrears, being an amount sufficient to fully amortize the Principal Amount, together with interest thereon, over a period of 15 years, in accordance with the Amortization Schedule attached hereto as Exhibit A. 2.2 Maturity Date. Notwithstanding the foregoing or anything to the contrary set forth in this Note, the Principal Amount, together with all accrued but unpaid interest thereon, shall be immediately due and payable, without notice, demand or presentment, on December 31, 2026 (the "Maturity Date"). 2.3 Prepayments. The indebtedness evidenced by this Note may be prepaid in whole or in part at any time, and from time to time, without penalty or premium. Each such prepayment shall first be applied against accrued but unpaid interest and second against principal. 3. Events of Default. The occurrence of any of the following events shall constitute an event of default (each individually, an "Event of Default"): 3.1 The failure by Debtor to make any payment hereunder within twenty (20) days of its due date; 3.2 The filing by or against Debtor, Productions or Management of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against Debtor, Productions or Management, such proceeding is not dismissed or stayed within one hundred twenty (120) days of the commencement thereof); 3.3 A default with respect to any other indebtedness of Debtor, Productions or Management for bon•owed money in excess of $100,000.00; 3.4 the occurrence of an "Event of Default" with respect to (a) a certain Promissory Note of even date herewith in the original principal amount of $5,020.00, by Gwen Shelly as debtor in favor of Creditor, or (b) a certain Promissory Note of even date herewith in the original principal amount of $147,490.00, by Todd Shelly as debtor in favor of Creditor; 3.5 The entry of a final judgment against Debtor, Productions or Management in excess of $100,000.00 and the failure of Debtor, Productions or Management to discharge the judgment or otherwise bond off any judgment lien resulting therefrom within one hundred twenty (120) days of the entry thereof; 3.6 Productions ceases doing business as a going concern; and 3.7 The failure by Productions to make any payment when due pursuant to a certain Consulting Agreement of even date herewith, by and between Creditor and Productions. 4. Remedies. Upon the occurrence of any Event of Default, Creditor, at Creditor's option, may declare the entire remaining unpaid Principal Amount, together with all accrued but unpaid interest thereon, to be due and payable without notice, demand or presentment, and exercise all other rights and remedies Creditor may have at law or in equity. The remedies provided for in this Note shall be cumulative and concurrent and may be pursued singly, successively or together against Debtor at the sole discretion of Creditor, and such remedies shall not be exhausted by any exercise thereof. 5. Power to Confess Judement. Debtor hereby empowers any attorney of any court of record, after the occurrence and during the continuance of an Event of Default, to appear for Debtor and, with or without complaint filed, confess judgment, or a series of judgments, against Debtor in favor of Creditor or any holder hereof for the entire outstanding Principal Amount, together with accrued but unpaid interest thereon, costs of suit and an attorneys' commission of $5,000.00 added as a reasonable attorneys' fee, and for doing so, this Note or a copy verified by affidavit shall be a sufficient warrant. Debtor hereby forever waives and releases all errors in said proceedings and all rights of appeal and all relief from any and all appraisement, stay or exemption laws of any jurisdiction now in force or hereafter enacted. Interest on the principal balance of the judgment shall accrue at a per annum rate of 10.0%. No single exercise of the foregoing power to confess judgment, or a series of judgments, shall be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void, but the power shall continue undiminished and it may be exercised from time to time as often as Creditor shall elect until such time as Creditor shall have received payment in full of the debt, interest and costs. Notwithstanding the attorneys' commission provided for in the preceding paragraph (which is included in the warrant for purposes of establishing a sum certain), the amount of attorneys' fees that Creditor may recover from Debtor shall not ezceed the actual attorneys' fees incurred by Creditor. 6. General Contract Provisions. 6.1 Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing and will be effective upon receipt. Such notices and other communications may be hand-delivered, sent by facsimile transmission with confirmation of delivery and a copy sent by first-class mail, or sent by nationally recognized overnight courier service, to the addresses for Creditor and Debtor set forth above or to such other address as either may give to the other in writing for such purpose. 6.2 Amendments. No modification, amendment or waiver of any provision of this Note or consent to any departure by Debtor therefrom will be effective unless made in a writing signed by both Debtor and Creditor. 6.3 Severabiliri. Ifany provision of this Note is found to be invalid by a court of law, all the other provisions of this Note will remain in full force and effect. 6.4 Successors. Heirs and Assiens. This Note shall bind Debtor and his successors, heirs and permitted assigns, and the benefits hereof shall inure to the benefit of Creditor and his successors, heirs and permitted assigns; orovided, however, that neither Creditor nor Debtor may assign this Note in whole or in part without the other party's prior written consent. 6.5 Governin¢ Law. This Note has been delivered to and accepted by Creditor and will be deemed to be made in the Commonwealth of Pennsylvania. This Note will be interpreted and the rights and liabilities of Debtor and Creditor determined in accordance with the laws of the Commonwealth of Pennsylvania, excluding its conflicts of laws rules. 6.6 Venue. Debtor hereby irrevocably consents to the exclusive jurisdiction of the Court of Common Pleas of Cumberland County, Pennsylvania; provided that nothing contained in this Note will prevent Creditor from bringing any action, enforcing any award or judgment or exercising any rights against Debtor, against any security or against any property of Debtor within any other county, state or other foreign or domestic jurisdiction. Debtor acknowledges and agrees that the venue provided above is the most convenient forum for both Debtor and Creditor. Debtor waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note. 6.7 No Presumption. Debtor and Creditor have participatedjointly in the negotiation and drafting of this Note and, in the event an ambiguity or question of intent or interpretation arises, this Note shall be construed as jointly drafted by Debtor and Creditor and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any provision of this Note. 7. Waiver of Jurv Trial. Debtor irrevocably waives any and all rights Debtor may have to a trial by jury in any action, proceeding or claim of any nature relating to this Note, any documents executed in connection with this Note or any transaction contemplated in any of such documents. Debtor acknowledges that the foregoing waiver is knowing and voluntary. [SIGNATURE APPEARS ON FOLLOWING PAGE] WITNESS the due execution of this Note as of the date first written above, with the intent to be legally bound hereby. WITNESS: DEBTOR: Adam Lohr Signature Page to Promissory Note Printable Amortization Schedule http://www.myam orti zationchart.com/display/printable-amortization... Loan Summa Payment Summary Principal: $147490 Number of o Payments: 16C Interest Rate: 5 /o Loan Term: 15 years Monthly Payment: $1,166.34 Total Principal Paid: $147,490.00 Total Interest Paid: $62,451.47 Total Paid: $209,941.47 Monthv Amortization Schedule Payment 1 Amount $1,166.34 Principal $551.80 Interest $614.54 Balanc $146,938.20 2 $1,166.34 $554.10 $612.24 $146,384.10 3 $1,166.34 $556.41 $609.93 $145,827.69 4 $1,166.34 $558.73 $607.62 $145,268.97 5 $1,166.34 $561.05 $605.29 $144,707.91 6 $1,166.34 $563.39 $602.95 $144,144.52 7 $1,166.34 $565.74 $600.60 $143,578.78 8 $1,166.34 $568.10 $598.24 $143,010.69 9 $1,166.34 $570.46 $595.88 $142,440.22 10 $1,166.34 $572.84 $593.50 $141,867.38 11 $1,166.34 $575.23 $591.11 $141,292.15 12 $1,166.34 $577.62 $588.72 $140,714.53 13 $1,166.34 $580.03 $586.31 $140,134.50 14 $1,166.34 $582.45 $583.89 $139,552.05 15 $1,166.34 $584.87 $581.47 $138,967.18 16 $1,166.34 $587.31 $579.03 $138,379.86 17 $1,166.34 $589.76 $576.58 $137,790.11 18 $1,166.34 $592.22 $574.13 $137,197.89 19 $1,166.34 $594.68 $571.66 $136,603.21 20 $1,166.34 $597.16 $569.18 $136,006.04 21 $1,166.34 $599.85 $566.69 $135,406.39 22 $1,166.34 $602.15 $564.19 $134,804.25 23 $1,166.34 $604.66 $561.68 $134,199.59 24 $1,166.34 $607.18 $559.16 $133,592.41 25 $1,166.34 $609.71 $556.64 $132,982.71 26 $1,166.34 $612.25 $554.09 $132,370.46 27 $1,166.34 $614.80 $551.54 $131,755.66 28 $1,166.34 $617.36 $548.98 $131,138.30 29 $1,166.34 $619.93 $546.41 $130,518.37 1 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http://www.myamorti ~ationchart. com/display/printable-amortization... 30 $1,166.34 $622.51 $543.83 $129,895.85 31 $1,166.34 $625.11 $541.23 $129,270.75 32 $1,166.34 $627.71 $538.63 $128,643.03 33 $1,166.34 $630.33 $536.01 $128,012.70 34 $1,166.34 $632.96 $533.39 $127,379.75 35 $1,166.34 $635.59 $530.75 $126,744.16 36 $1,166.34 $638.24 $528.10 $126,105.92 37 $1,166.34 $640.90 $525.44 $125,465.01 38 $1,166.34 $643.57 $522.77 $124,821.44 39 $1,166.34 $646.25 $520.09 $124,175,19 40 $1,166.34 $648.94 $517.40 $123,526.25 41 $1,166.34 $651.65 $514.69 $122,874.60 42 $1,166.34 $654.36 $511.98 $122,220.23 43 $1,166.34 $657.09 $509.25 $121,563.14 44 $1,166.34 $659.83 $506.51 $120,903.32 45 $1,166.34 $662.58 $503.76 $120,240.74 46 $1,166,34 $665.34 $501.00 $119,575.40 47 $1,166.34 $668.11 $498.23 $118,907.29 48 $1,166.34 $670.89 $495.45 $118,236.39 49 $1,166.34 $673.69 $492.65 $117,562.70 50 $1,166.34 $676.50 $489.84 $116,886.21 51 $1,166.34 $679.32 $487.03 $116,206.89 52 $1,166.34 $682.15 $484.20 $115,524.75 53 $1,166.34 $684.99 $481.35 $114,839.76 54 $1,166.34 $687.64 $478.50 $114,151.91 55 $1,166.34 $690.71 $475.63 $113,461.21 56 $1,166.34 $693.59 $472.76 $112,767.62 57 $1,166.34 $696.48 $469.87 $112,071.14 58 $1,166.34 $699.38 $466.96 $111,371.76 59 $1,166.34 $702.29 $464.05 $110,669.47 60 $1,166.34 $705.22 $461.12 $109,964.25 61 $1,166.34 $708.16 $458.18 $109,256.10 62 $1,166.34 $711.11 $455.23 $108,544.99 63 $1,166.34 $714.07 $452.27 $107,830.92 64 $1,166.34 $717.05 $449.30 $107,113.87 65 $1,166.34 $720.03 $446.31 $106,393.84 66 $1,166.34 $723.03 $443.31 $105,670.80 67 $1,166.34 $726.05 $440.30 $104,944.76 2 of 5 - 12/72012 12:19 PM Printable Amortisation Schedule http://www.myamortizationchart.com/display/pri ntable-amortization... 68 $1,166.34 $729.07 $437.27 $104,215.69 69 $1,166.34 $732.11 $434.23 $103,483.56 70 $1,166.34 $735.16 $431.18 $102,748.42 71 $1,166.34 $738.22 $428.12 $102,010.19 72 $1,166.34 $741.30 $425.04 $101,268.89 73 $1,166.34 $744.39 $421.95 $100,524.51 74 $1,166.34 $747.49 $418.85 $99,777.02 75 $1,166.34 $750.60 $415.74 $99,026.41 76 $1,166.34 $753.73 $412.61 $98,272.68 77 $1,166.34 $756.87 $409.47 $97,515.81 78 $1,166.34 $760.03 $406.32 $96,755.78 79 $1,166.34 $763.19 $403.15 $95,992.59 80 $1,166.34 $766.37 $399.97 $95,226.22 81 $1,166.34 $769.57 $396.78 $94,456.65 82 $1,166.34 $772.77 $393.57 $93,683.88 83 $1,166.34 $775.99 $390.35 $92,907.89 84 $1,166.34 $779.23 $387.12 $92,128.66 85 $1,166.34 $782.47 $383.87 $91,346.19 86 $1,166.34 $785.73 $380.61 $90,560.46 87 $1,166.34 $789.01 $377.34 $89,771.45 88 $1,166.34 $792.29 $374.05 $88,979.16 89 $1,166.34 $795.60 $370.75 $88,183.56 90 $1,166.34 $798.91 $367.43 $87,384.65 91 $1,166.34 $802.24 $364.10 $86,582.42 92 $1,166.34 $805.58 $360.76 $85,776.83 93 $1,166.34 $808.94 $357.40 $84,967.90 94 $1,166.34 $812.31 $354.03 $84,155.59 95 $1,166.34 $815.69 $350.65 $83,339.89 96 $1,166.34 $819.09 $347.25 $82,520.80 97 $1,166.34 $822.50 $343.84 $81,698.30 98 $1,166.34 $825.93 $340.41 $80,872.37 99 $1,166.34 $829.37 $336.97 $80,042.99 100 $1,166.34 $832.83 $333.51 $79,210.16 101 $1,166.34 $836.30 $330.04 $78,373.86 102 $1,166.34 $839.78 $326.58 $77,534.08 103 $1,166.34 $843.28 $323.06 $76,690.80 104 $1,166.34 $846.80 $319.54 $75,844.00 105 $1,166.34 $850.32 $316.02 $74,993.68 3 of 5 12/7/20 ] 2 12:19 PM Printable Amortization Schedule http: //www, myamortiza[i on chart.com/display/printable-amortization... 106 $1,166.34 $853.87 $312.47 $74,139.81 107 $1,166.34 $857.43 $308.92 $73,282.38 108 $1,166.34 $861.00 $305.34 $72,421.38 109 $1,166.34 $864.59 $301.76 $71,556.80 110 $1,166.34 $868.19 $298.15 $70,688.61 111 $1,166.34 $871.81 $294.54 $69,816.80 112 $1,166.34 $875.44 $290.90 $68,941.37 113 $1,166.34 $879.09 $287.26 $68,062.28 114 $1,166.34 $882.75 $283.59 $67,179.53 115 $1,166.34 $886.43 $279.91 $66,293.11 116 $1,166.34 $890.12 $276.22 $65,402.99 117 $1,166.34 $893.83 $272.51 $64,509.16 118 $1,166.34 $897.55 $268.79 $63,611.60 119 $1,166.34 $901.29 $265.05 $62,710.31 120 $1,166.34 $905.05 $261.29 $61,805.26 121 $1,166.34 $908.82 $257.52 $60,898.44 122 $1,166.34 $912.61 $253.74 $59,983.84 123 $1,166.34 $916.41 $249.93 $59,067.43 124 $1,166.34 $920.23 $246.11 $58,147.20 125 $1,166.34 $924.06 $242.28 $57,223.14 126 $1,166.34 $927.91 $238.43 $56,295.23 127 $1,166.34 $931.78 $234.56 $55,363.45 128 $1,166.34 $935.66 $230.68 $54,427.79 129 $1,166.34 $939.56 $226.78 $53,488.23 130 $1,166.34 $943.47 $222.87 $52,544.75 131 $1,166.34 $947.41 $218.94 $51,597.35 132 $1,166.34 $951.35 $214.99 $50,646.00 133 $1,166,34 $955.32 $211.02 $49,690.68 134 $1,166.34 $959.30 $207.04 $48,731.38 135 $1,166.34 $963.29 $203.05 $47,768.09 136 $1,166.34 $967.31 $199.03 $46,800.78 137 $1,166.34 $971.34 $195.00 $45,829.44 138 $1,166.34 $975.39 $190.96 $44,854.06 139 $1,166.34 $979.45 $786.89 $43,874.61 140 $1,166.34 $983.53 $182.81 $42,891.08 141 $1,166.34 $987.63 $178.71 $41,903.45 142 $1,166.34 $991.74 $174.60 $40,911.70 143 $1,166.34 $995.88 $170.47 $39,915.83 4 of 5 12/7/2012 12:19 PM Printable Amortization Schedule h ttp://www.myamortizationchart.com/display/printable-amortization... 144 $1,166.34 $1,000.03 $166.32 $38,915.80 145 $1,166.34 $1,004.19 $162.15 $37,911.61 146 $1,166.34 $1,008.38 $157.97 $36,903.23 147 $1,166.34 $1,012.58 $153.76 $35,890.66 148 $1,166.34 $1,016.80 $149.54 $34,873.86 149 $1,166.34 $1,021.03 $145.31 $33,852.82 150 $1,166.34 $1,025.29 $141.05 $32,827.54 151 $1,166.34 $1,029.56 $136.78 $31,797.98 152 $1,168.34 $1,033.85 $132.49 $30,764.13 153 $1,166.34 $1,038.16 $128.18 $29,725.97 154 $1,166.34 $1,042.48 $123.86 $28,683.49 155 $1,166.34 $1,046.83 $119.51 $27,636.66 156 $1,166.34 $1,051.19 $115.15 $26,585.47 157 $1,166.34 $1,055.57 $110.77 $25,529.90 158 $1,166.34 $1,059.97 $106.37 $24,469.93 159 $1,166.34 $1,064.38 $101.96 $23,405.55 160 $1,166.34 $1,068.82 $97.52 $22,336.73 161 $1,166.34 $1,073.27 $93.07 $21,263.46 162 $1,166.34 $1,077.74 $88.60 $20,185,72 163 $1,166.34 $1,082.23 $84.11 $19,103.48 164 $1,166.34 $1,086.74 $79.60 $18,016.74 165 $1,166.34 $1,091.27 $75.07 $16,925.47 166 $1,166.34 $1,095.82 $70.52 $15,829.65 167 $1,166.34 $1,100.38 $65.96 $14,729.26 166 $1,166.34 $1,104.97 $61.37 $13,624.29 169 $1,166.34 $1,109.57 $56.77 $12,514.72 170 $1,168.34 $1,114.20 $52.14 $11,400.52 171 $1,166.34 $1,118.84 $47.50 $10,281.68 172 $1,166.34 $1,123.50 $42.84 $9,158.18 173 $1,166.34 $1,128.18 $38.16 $8,030.00 174 $1,166.34 $1,132.88 $33.46 $6,897.12 175 $1,166.34 $1,137.60 $28.74 $5,759.51 176 $1,166.34 $1,142.34 $24.00 $4,617.17 177 $1,166.34 $1,147.10 $19.24 $3,470.07 178 $1,166.34 $1,151.88 $14.46 $2,318.18 179 $1,166.34 $1,156.68 $9.68 $1,161.50 180 $1,166.34 $1,161.50 $4.84 $0.00 Totals $209,941,47 $147,490.00 $62,451.47 5 of 5 12/7/2012 12:19 PM PROMISSORY NOTE $147,490.00 December 31, 2012 FOR VALUE RECEIVED, TODD SHELLY, an adult individual residing at 412 Prowell Drive Camp Hill, PA 17011 ("Debtor"), hereby promises to pay to THOMAS G. LIDDICK, SR., an adult individual residing at 49 Longwood Drive, Mechanicsburg, PA 17050 ("Creditor"), the principal amount of $147,490.00 (the "Principal Amount") in lawful money of the United States of America, together with interest on the outstanding balance of the Principal Amount which shall commence to accrue on the date hereof, pursuant to the terms and conditions of this Promissory Note (this "Note"). This Note is being delivered pursuant to and in accordance with Section 1.4(c) of that certain Stock Purchase Agreement by and among, Debtor as seller, Creditor as buyer, and other parties (the "Stock Purchase Agreement"). Capitalized terms used in this Note which are not otherwise defined shall have the respective meanings assigned to them in the Stock Purchase Agreement. 1. Interest Rate. Commencing on the date hereof and continuing through and including the Maturity Date (as defined below), the outstanding balance of the Principal Amount shall bear interest at a fixed rate of 5.0% per annum. 2. Payments of Principal and Interest. 2.1 Principal and Interest Period. Beginning on January 31, 2013 and continuing on the last day of each month thereafter throughout the term of this Note, Debtor shall pay Creditor the sum of $1,166.34, in arrears, being an amount sufficient to fully amortize the Principal Amount, together with interest thereon, over a period of I S years, in accordance with the Amortization Schedule attached hereto as Exhibit A. 2.2 Maturity Date. Notwithstanding the foregoing or anything to the contrary set forth in this Note, the Principal Amount, together with all accrued but unpaid interest thereon, shall be immediately due and payable, without notice, demand or presentment, on December 31, 2026 (the "Maturity Date"). 2.3 Prepayments. The indebtedness evidenced by this Note may be prepaid in whole or in part at any time, and from time to time, without penalty or premium. Each such prepayment shall first be applied against accrued but unpaid interest and second against principal. 3. Eveuts of Default. The occurrence of any of the following events shall constitute an event of default (each individually, an "Event of Default"): 3.1 The failure by Debtor to make any payment hereunder within twenty (20) days of its due date; 3.2 The filing by or against Debtor, Productions or Management of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship or similar proceeding (and, in the case of any such proceeding instituted against Debtor, Productions or Management, such proceeding is not dismissed or stayed within one hundred twenty (120) days of the commencement thereof); 33 A default with respect to any other indebtedness of Debtor, Productions or Management for borrowed money in excess of $100,000.00; 3.4 the occurrence of an "Event of Default" with respect to (a) a certain Promissory Note of even date herewith in the original principal amount of $147,490.00, by Adam Lohr as debtor in favor of Creditor, or (b) a certain Promissory Note of even date herewith in the original principal amount of $5,020.00, by Gwen Shelly as debtor in favor of Creditor; 3.5 The entry of a final judgment against Debtor, Productions or Management in excess of $100,000.00 and the failure of Debtor, Productions or Management to discharge the judgment or otherwise bond off any judgment lien resulting therefrom within one hundred twenty (120) days of the entry thereof; 3.6 Productions ceases doing business as a going concern; and 3.7 The failure by Productions to make any payment when due pursuant to a certain Consulting Agreement of even date herewith, by and between Creditor and Productions. 4. .Remedies. Upon the occurrence of any Event of Default, Creditor, at Creditor's option, may declare the entire remaining unpaid Principal Amount, together with all accrued but unpaid interest thereon, to be due and payable without notice, demand or presentment, and exercise all other rights and remedies Creditor may have at law or in equity. The remedies provided for in this Note shall be cumulative and concurrent and may be pursued singly, successively or together against Debtor at the sole discretion of Creditor, and such remedies shall not be exhausted by any exercise thereof. 5. Power to Confess JudPment. Debtor hereby empowers any attorney of any court of record, after the occurrence and during the continuance of an Event of Default, to appear for Debtor and, with or without complaint filed, confess judgment, or a series of judgments, against Debtor in favor of Creditor or any holder hereof for the entire outstanding Principal Amount, together with accrued but unpaid interest thereon, costs of suit and an attorneys' commission of $5,000.00 added as a reasonable attorneys' fee, and for doing so, this Note or a copy verified by affidavit shall be a sufficient warrant. Debtor hereby forever waives and releases all errors in said proceedings and all rights of appeal and all relief from any and all appraisement, stay or exemption laws of any jurisdiction now in force or hereafter enacted. Interest on the principal balance of the judgment shall accrue at a per annum rate of 10.0%. No single exercise of the foregoing power to confess judgment, or a series of judgments, shall be deemed to ezhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void, but the power shall continue undiminished and it may be exercised from time to time as often as Creditor shall elect until such time as Creditor shall have received payment in full of the debt, interest and costs. Notwithstanding the attorneys' commission provided for in the preceding paragraph (which is included in the warrant for purposes of establishing a sum certain), the amount of attorneys' fees that Creditor may recover from Debtor shall not exceed the actual attorneys' fees incurred by Creditor. 6. General Contract Provisions. 6.1 Notices. All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing and will be effective upon receipt. Such notices and other communications may be hand-delivered, sent by facsimile transmission with confirmation of delivery and a copy sent by first-class mail, or sent by nationally recognized overnight courier service, to the addresses for Creditor and Debtor set forth above or to such other address as either may give to the other in writing for such purpose. 6.2 Amendments. No modification, amendment or waiver of any provision of this Note or consent to any departure by Debtor therefrom wi II be effective unless made in a writing signed by both Debtor and Creditor. 6.3 Severability. If any provision of this Note is found to be invalid by a court of law, all the other provisions of this Note will remain in full force and effect. 6.4 Successors. Heirs and Assiens. This Note shall bind Debtor and his successors, heirs and permitted assigns, and the benefits hereof shall inure to the benefit of Creditor and his successors, heirs and permitted assigns; orovided, however, that neither Creditor nor Debtor may assign this Note in whole or in part without the other party's prior written consent. 6.5 Governing Law. This Note has been delivered to and accepted by Creditor and will be deemed to be made in the Commonwealth of Pennsylvania. This Note will be interpreted and the rights and liabilities of Debtor and Creditor determined in accordance with the laws of the Commonwealth of Pennsylvania, excluding its conflicts of laws rules. 6.6 Venue. Debtor hereby irrevocably consents to the exclusive jurisdiction of the Court of Common Pleas of Cumberland County, Pennsylvania; provided that nothing contained in this Note will prevent Creditor from bringing any action, enforcing any award or judgment or exercising any rights against Debtor, against any security or against any property of Debtor within any other county, state or other foreign or domestic jurisdiction. Debtor acknowledges and agrees that the venue provided above is the most convenient forum for both Debtor and Creditor. Debtor waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note. 6.7 No Presumption. Debtor and Creditor have participated jointly in the negotiation and drafting of this Note and, in the event an ambiguity or question of intent or interpretation arises, this Note shall be construed as jointly drafted by Debtor and Creditor and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any provision of this Note. 7. Waiver of Jurv Trial. Debtor irrevocably waives any and all rights Debtor may have to a trial by jury in any action, proceeding or claim of any nature relating to this-Note, any documents executed in connection with this Note or any transaction contemplated in any of such documents. Debtor acknowledges that the foregoing waiver is knowing and voluntary. [SIGNATURE APPEARS ON FOLLOWING PAGE] 4 WITNESS the due execution of this Note as of the date first written above, with the intent to be legally bound hereby. WITNESS: DEBTOR: Todd Shelly Signature Page to Promissory Note Printable Amortization Schedule http://www.myamortiza[ionchart.com/display/printable-amortization... Loan Summa Pa ment Summa Principal: $147490 Number of 180 Interest Rate: 5°~u Payments: Loan Term: 15 years Monthly Payment: $1,166.34 Total Principal Paid: $147,490.00 Total Interest Paid: $62,451.47 Total Pald: $209,941.47 Mouthy Amortization Schedule Payment 1 Amount $1,166.34 Principal $551.80 Interest $614.54 Balanc $146,938.20 2 $1,166.34 $554 .10 $612. 24 $146,364.10 3 $1,166.34 $556 .41 $609. 93 $145,827 .69 4 $1,166.34 $558 .73 .$607. 62 $145,268 .97 5 $1,166.34 $561 .05 $605. 29 $144,707 .91 6 $1,166.34 $563 .39 $602. 95 $144,144.52 7 $1,166.34 $565. 74 $600. 60 $143,578 .78 8 $1,166.34 $568 .10 $598. 24 $143,010 .69 9 $1,166.34 $570 .46 $595. 88 $142,440 .22 10 $1,166.34 $572 .84 $593. 50 $141,867 .38 11 $1,166.34 $575 .23 $591 .11 $141,292 .15 12 $1,166.34 $577. 62 $588. 72 $140,714 .53 13 $1,166.34 $560. 03 $586. 31 $140,134 .50 14 $1,166.34 $582. 45 $583. 89 $139,552 .05 15 $1,166.34 $584.87 $581. 47 $138,967.18 16 $1,166.34 $587. 31 $579. 03 $138,379 .86 17 $1,166.34 $589. 76 $576. 58 $137,790.11 18 $1,166.34 $592. 22 $574. 13 $137,197 .89 19 $1,166.34 $594. 68 $571. 66 $136,603 .21 20 $1,166.34 $597 .16 $569. 18 $138,006 .04 21 $1,166.34 $599. 65 $566. 69 $135,408 .39 22 $1,166.34 $602. 15 $564. 19 $134,804 .25 23 $1,166.34 $604. 66 $561. 68 $134,199. 59 24 $1,166.34 $607. 18 $559. 16 $133,592. 41 25 $1,166.34 $609. 71 $556. 64 $132,982. 71 26 $1,166.34 $612. 25 $554. 09 $132,370. 46 27 $1,166.34 $614, 80 $551. 54 $131,755. 66 28 $1,166.34 $617. 36 $548. 98 $131,138. 30 29 $1,166.34 $619. 93 $546. 41 $130,518. 37 1 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http: //www.myam ortizationchart.com/display/printable-amortization... 30 $1,166.34 $622 .51 $543 .83 $129,895 .85 31 $1,166.34 $625.11 $541 .23 $129,270 .75 32 $1,166.34 $627 .71 $538 .63 $128,643 .03 33 $1,166.34 $630 .33 $536 .01 $128,012 .70 34 $1,166.34 $632 .96 $533 .39 $127,379 .75 35 $1,166.34 $635 .59 $530 .75 $126,744.16 36 $1,166.34 $638 .24 $528 .10 $126,105 .92 37 $1,166.34 $640 .90 $525.44 $125,465 .01 38 $1,166.34 $643 .57 $522 .77 $124,821 .44 39 $1,166.34 $646. 25 $520 .09 $124,175.19 40 $1,166.34 $646 .94 $517 .40 $123,526 .25 41 $1,166.34 $651. 65 $514 .69 $122,874 .60 42 $1,166.34 $654 .36 $511 .98 $122,220 .23 43 $1,166.34 $657 .09 $509 .25 $121,563 .14 44 $1,166.34 $659 .83 $506 .51 $120,903 .32 45 $1,166.34 $662 .58 $503 .76 $120,240 .74 46 $1,166.34 $665 .34 $501 .00 $119,575 .40 47 $1,166.34 $668.11 $496 .23 $118,907 .29 48 $1,166.34 $670 .89 $495 .45 $118,236 .39 49 $1,166.34 $673 .69 $492 .65 $117,562 .70 50 $1,166.34 $676 .50 $489 .84 $116,886 .21 51 $1,166.34 $679 .32 $487 .03 $116,206 .89 52 $1,166.34 $682 .15 $484 .20 $115,524 .75 53 $1,166.34 $684 .99 $481 .35 $114,839 .76 54 $1,166.34 $687 .84 $478 .50 $114,151 .91 55 $1,166.34 $690 .71 $475 .63 $113,461 .21 56 $1,166.34 $693 .59 $472.76 $112,767 .62 57 $1,166.34 $696 .48 $469 .67 $112,071 .14 58 $1,166.34 $699 .38 $466 .96 $111,371 .76 59 $1,166.34 $702 .29 $464.05 $110,669 .47 60 $1,166.34 $705 .22 $461 .12 $109,964 .25 61 $1,166.34 $708 .16 $458 .18 $109,256 .10 62 $1,166.34 $711 .11 $455 .23 $108,544 .99 63 $1,166.34 $714 .07 $452 .27 $107,830 .92 64 $1,166.34 $717 .05 $449 .30 $107,113 .87 65 $1,166.34 $720 .03 $446 .31 $106,393 .84 66 $1,166.34 $723. 03 $443 .31 $105,670 .80 67 $1,166.34 $726. 05 $440 .30 $104,944 .76 2 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http://www.myamortizationchart.com/display/printable-amortization... 68 $1,166.34 $729 .07 $437 .27 $104,215 .69 69 $1,166.34 $732 .11 $434.23 $103,483.58 70 $1,166.34 $735 .16 $431 .18 $102,748 .42 71 $1,166.34 $738 .22 $428 .12 $102,010 .19' 72 $1,166.34 $741 .30 $425. 04 $101,268 .89 73 $1,166.34 $744 .39 $421. 95 $100,524 .51 74 $1,166.34 $747 .49 $418. 85 $99,777 .02 75 $1,166.34 $750 .60 $415 .74 $99,026.41 76 $1,166.34 $753 .73 $412. 61 $98,272 .68 77 $1,166.34 $756 .87 $409. 47 $97,515 .81 78 $1,166.34 $760 .03 $406. 32 $96,755 .78 79 $1,166.34 $763 .19 $403. 15 $95,992 .59 80 $1,166.34 $766 .37 $399. 97 $95,226 .22 81 $1,166.34 $769 .57 $396. 78 $94,456 .65 82 $1,166.34 $772 .77 $393. 57 $93,683 .88 83 $1,166.34 $775 .99 $390. 35 $92,907 .89 84 $1,166.34 $779 .23 $387. 12 $92,128 .66 85 $1,166.34 $782 .47 $383.67 $91,346 .19 86 $1,166.34 $785 .73 $380. 61 $90,560 .46 87 $1,166.34 $789 .01 $377 .34 $89,771 .45 88 $1,166.34 $792 .29 $374. 05 $88,979 .16 89 $1,166.34 $795 .60 $370. 75 $88,183 .56 90 $1,166.34 $798 .91 $367. 43 $87,384 .65 91 $1,166.34 $802 .24 $364.10 $86,582 .42 92 $1,166.34 $805 .58 $360. 76 $85,776 .83 93 $1,166.34 $808 .94 $357. 40 $84,967 .90 94 $1,166.34 $812 .31 $354. 03 $84,155 .59 95 $1,166.34 $815 .69 $350. 65 $83,339 .89 96 $1,166.34 $819 .09 $347. 25 $82,520 .80 97 $1,166.34 $822. 50 $343. 84 $81,698 .30 98 $1,166.34 $825 .93 $340. 41 $80,872 .37 99 $1,166.34 $829. 37 $336. 97 $80,042. 99 100 $1,166.34 $832. 83 $333. 51 $79,210 .16 101 $1,166.34 $836. 30 $330. 04 $78,373. 86 102 $1,166.34 $839. 78 $326. 56 $77,534 .08 103 $1,166.34 $843. 28 $323. 06 $76,690. 80 104 $1,166.34 $846. 80 $319.54 $75,844 .00 105 $1,166.34 $850. 32 $316. 02 $74,993. 68 3 of 5 12/72012 12: I9 PM Printable Amortization Schedule http://www.myamortiza6onchart.com/display/printable-amortization... 106 $1,166 .34 $853 .87 $312.47 $74,139 .81 107 $1,166 .34 $857 .43 $308. 92 $73,282 .38 108 $1,166.34 $861. 00 $305. 34 $72,421. 38 109 $1,166 .34 $864 .59 $301. 76 $71,556 .80 110 $1,166. 34 $868. 19 $298. 15 $70,688. 61 111 $1,166. 34 $871. 81 $294.54 $69,816. 80 112 $1,166 .34 $875. 44 $290. 90 $68,941. 37 113 $1,166.34 $879. 09 $287. 26 $68,062. 28 114 $1,166 .34 $882. 75 $283. 59 $67,179. 53 115 $1,166.34 $886. 43 $279. 91 $66,293 .11 116 $1,166 .34 $890. 12 $276. 22 $65,402. 99 117 $1,166. 34 $893. 83 $272. 51 $64,509. 16 118 $1,166 .34 $897. 55 $268. 79 $63,611. 60 119 $1,166. 34 $901. 29 $265. 05 $62,710. 31 120 $1,166 .34 $905. 05 $261. 29 $61,805. 26 121 $1,166 .34 $908. 82 $257. 52 $60,896. 44 122 $1,166,34 $912. 61 $253. 74 $59,963.84 123 $1,166 .34 $916. 41 $249. 93 $59,067. 43 124 $1,166 .34 $920. 23 $246. 11 $58,147. 20 125 $1,166 .34 $924 .06 $242. 28 $57,223. 14 126 $1,166.34 $927. 91 $238. 43 $56,295. 23 127 $1,166. 34 $931. 78 $234. 56 $55,363.45 128 $1,166. 34 $935. 66 $230. 68 $54,427. 79 129 $1,166 .34 $939. 56 $226. 78 $53,488. 23 130 $1,166 .34 $943. 47 $222. 87 $52,544. 75 131 $1,166 .34 $947. 41 $218. 94 $51,597. 35 132 $1,166 .34 $951 .35 $214. 99 $50,646. 00 133 $1,166. 34 $955. 32 $211. 02 $49,690. 68 134 $1,166. 34 $959. 30 $207. 04 $48,731. 38 135 $1,166. 34 $963. 29 $203. 05 $47,768. 09 136 $1,166. 34 $967. 31 $199. 03 $46,800. 78 137 $1,166. 34 $971. 34 $195. 00 $45,829. 44 136 $1,166. 34 $975. 39 $190. 96 $44,854. 06 139 $1,166. 34 $979.45 $186. 89 $43,874. 61 140 $1,166. 34 $983. 53 $182. 81 $42,891. 08 141 $1,166. 34 $987. 63 $178. 71 $41,903. 45 142 $1,166. 34 $991. 74 $174. 60 $40,911. 70 143 $1,166. 34 $995. 88 $170.47 $39,915. 83 4 of 5 12/7/2012 12:19 PM Printable Amortization Schedule http: //www.myamoRiiationchart.com/display/printable-am or[ization... 144 $1,166.34 $1,000.03 $166.32 $38,915.80 145 $1,166.34 $1,004.19 $162.15 $37,911.61 146 $1,166.34 $1,008.38 $157.97 $36,903.23 147 $1,166.34 $1,012.58 $153.76 $35,890.66 148 $1,166.34 $1;016.80 $149.54 $34,873.86 149 $1,166.34 $1,021.03 $145.31 $33,652.82 150 $1,166.34 $1,025.29 $141.05 $32,827.54 151 $1,166.34 $1,029.56 $136.78 $31,797.98 152 $1,166.34 $1,033.85 $132.49 $30,764.13 153 $1,166.34 $1,038.16 $128.18 $29,725.97 154 $1,166.34 $1,042.48 $123.86 $28,683.49 155 $1,166.34 $1,048.83 $119.51 $27,636.66 156 $1,166.34 $1,051.19 $115.15 $26,585.47 157 $1,166.34 $1,055.57 $110.77 $25,529.90 158 $1,166.34 $1,059.97 $106.37 $24,469.93 159 $1,166.34 $1,064.38 $101.96 $23,405.55 160 $1,166.34 $1,068.82 $97.52 $22,336.73 161 $1,166.34 $1,073.27 $93.07 $21,263.46 162 $1,166.34 $1,077.74 $88.60 $20,185.72 163 $1,166.34 $1,082.23 $84.11 $19,103.48 164 $1,166.34 $1,086.74 $79.60 $18,016.74 165 $1,166.34 $1,091.27 $75.07 $16,925.47 166 $1,166.34 $1,095.82 $70.52 $15,829.65 167 $1,166.34 $1,100.38 $65.96 $14,729.26 168 $1,166.34 $1,104.97 $61.37 $13,624.29 169 $1,166.34 $1,109.57 $56.77 $12,514.72 170 $1,166.34 $1,114.20 $52.14 $11,400.52 171 $1,166.34 $1,118.84 $47.50 $10,281.68 172 $1,166.34 $1,123.50 $42.84 $9,158.18 173 $1,166.34 $1,128.18 $38.16 $8,030.00 174 $1,166.34 $1,132.88 $33.46 $6,897.12 175 $1,166.34 $1,137.60 $28.74 $5,759.51 176 $1,166.34 $1,142.34 $24.00 $4,617.17 177 $1,166.34 $1,147.10 $19.24 $3,470.07 178 $1,166.34 $1,151.88 $14.46 $2,318.18 179 $1,166.34 $1,156.68 $9.66 $1,161.50 180 $1,166.34 $1,161.50 $4.84 $0.00 _ Totals _. $209,941.47 _. $147,490.00 $62,451.47 5 of 5 12/7/2072 12:19 PM CONSULTING AGREEMENT This CONSULTING AGREEMENT (this "Agreement") is entered into on December 31, 2012, by and among BARKLEIGH PRODUCTIONS, INC., a Pennsylvania corporation ("Productions"), BARKLEIGH MANAGEMENT GROUP, INC., a Pennsylvania corporation ("Management"), and THOMAS G. LIDDICK ("Contractor"). Productions and Management shall each be referred to herein as a "Company" and together as the "Companies". Background A. Pursuant to a certain Stock Purchase Agreement dated December 6, 2012, by and among the Companies, Contractor and others (the "Purchase Agreement"), Contractor sold and disposed of his entire equity interest in each of the Companies. B. The Companies desires to engage Contractor to provide consulting and post-closing transition services on an as-needed basis, and Contractor desires to accept such engagement with the Companies. C. Contractor is the account holder of a certain Citi Gold A*Advantage World MasterCard, account number ending in 4334 (the "Credit Card"). The Companies further desires to compensate Contractor for his agreement to continue allowing the Companies to use the Credit Card for their own business purposes. Agreement In consideration of the foregoing background, which is hereby incorporated by reference, and for other good and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, and intending to be legally bound, the Company and Contractor each agree as follows: 1. Effective Date. This Agreement shall be effective as of 12:01 am on January 1, 2013 (the "Effective Date"). 2. Term. Subject to the terms and conditions of Section 6 below, the term of this Agreement shall commence on the Effective Date and shall continue for a period of fifteen years thereafter (the "Term"). 3. Scoce of Services. 3.1 Consulting Services. Each Company hereby engages Contractor (a) to provide such Company with consulting and post-closing transition services on an as-needed basis, and (b) to perform such other duties and tasks, and undertake such responsibilities in furtherance therewith (collectively, the `services"). The Contractor hereby accepts such engagement. Specific assignments of Contractor shall be coordinated through [he President of such Company. 3.2 Use of Credit Card. Throughout the Tenn: (a) Consultant shall continue to allow the Companies to charge items to the Credit Card in accordance with the past practices; (b) Consultant shall take no action nor make any attempt to terminate the Credit Card, reduce [he credit limit of the Credit Card or change the registered address for the Credit Card; (c) Consultant shall not make any personal charges to the Credit Card. Throughout the Term, the Companies shall be responsible for making payment for all items charged to the Credit Card by the Companies; provided, however, that the Companies shall have no obligation whatsoever for items which were not charged to the Credit Card by the Company. The Companies (and not Contractor) shall be entitled to redeem and use any airline miles which accrue under the Credit Card during the Term. 4. Relationship of the Parties. 4.1 lndeoendent Contractor. Contractor is an independent contractor of each Company, and not an employee, servant, agent or representative. Each Company, on the one hand, and Contractor, on the other hand, shall at all times be independent parties. Neither party is an employee, joint venturer, franchisee or agent of the other, and neither party is authorized to assume or create any obligations or liabilities, express or implied, on behalf of or in the name of the other. Neither Company will exercise detailed control or discretion over the Services to be performed or the manner and method in which they are performed. Contractor acknowledges that there will be no on- the-job training, direct day-to-day supervision or regular meetings to attend. Contractor is free to establish his own day-to-day schedule with respect to the Services, provided he fulfills the Services delegated to him. 4.2 No Responsibility for Taxes. Neither Company shall have any responsibility for the reporting, collection, remittance or payment of any employment, payroll or wage taxes (whether federal, state or local), including but not limited to FICA, personal income taxes and insurance taxes, imposed or owing with respect to Contractor, or Contractor's workers, employees and subcontractors hired, engaged or employed by Contractor to perform the Services, if any. 5. Comuensatioo. 5.1 Fees. In consideration of this Agreement, the Company shall pay Contractor a monthly fee of $1,000 which fee shall be paid up fronton the first business day of each calendar month throughout the Term, beginning as of the Effective Date. The monthly fee shall be prorated for any partial calendar month. Such fees shall be the sole consideration due and payable to Contractor hereunder. 5.2 No Em l~ovee Benefits. Contractor shall not be entitled to participate in any plans, arrangements or distributions made or administered by eitherCompany pertaining to or in connection with any employee benefits, including without limitation, health, dental, life or disability insurance, pension, 401(k), vacation, workers' compensation, unemployment compensation or any other benefits that are afforded by either Company exclusively to its empbyees. 6. Termination. 6.1 Termination Upon Expiration. This Agreement shall automatically terminate, without any further action on the part of any party, upon expiration of the Term. 6.2 Termination Without Cause. Either party may terminate this Agreement, without cause, for any reason, upon providing the other party with 30 days' advance written notice of its intent to terminate this Agreement. 6.3 Termination for Cause. This Agreement, and the engagement of Contractor hereunder, shall immediately terminate upon the occurrence of one or more of the following events, each of which shall constitute "Cause" hereunder: (i) the abandonment by Contractor of the performance of his duties hereunder; (ii) acts or omissions by Contractor that subject either Company to civil or criminal penalties, or result in the incarceration of any officer, manager or employee of either Company; (iii) Contractor being convicted of, or pleading guilty or nolo contendere to a felony; (iv) any adjudicated fraud or embezzlement by Contractor; (v) a violation by Contractor of any non-solicitation, noncompetition or non-disclosure provision contained in this Agreement; or (vi) a violation by Contractor of Section 3.2 hereof. 6.4 Termination Umon Death. This Agreement, and the engagement of Contractor hereunder, shall automatically terminate as of the date of Contractor's death. 6.5 Riehts Umon Termination. Upon termination of this Agreement, all of the rights and obligations of the parties hereunder shall immediately terminate; provided, however, that (a) termination of this Agreement shall not relieve either party from any liabilities resulting from a breach of this Agreement which occurred prior to termination, (b) Sections 7, 8 and 9 of this Agreement shall survive termination of this Agreement in accordance with their terms, and (c) if and only if this Agreement was terminated by the Companies without Cause pursuant to Section 6.2 above, then Contractor shall be entitled to receive the Termination Payment described in Section 6.6 below. 6.6 Ternination Pavment. If this Agreement is terminated by the Companies without Cause in accordance with Section 6.2 above, then the Companies shall be required to pay to Contractor, in one lump sum payment, the net present value of Contractor's remaining unpaid fees over the remaining Term (the "Termination Payment"). In calculating the Termination Payment: (a) the present value of Contractor's fees for the remaining Tenn shall be discounted annually at 5%; and (b) an assumption shall be made that all unpaid fees for a given calendar year shall be due and payable as of January 1 of that calendar year. For example: As of January 1, 2025, the remaining fees otherwise due hereunder would be $36, 000 ($12,000 per year for three years). If this Agreement is terminated by the Companies without Cause on January 1, 2025, then the Termination Payment due and payable on January 1, 2025 would be an amount equal to $32,519, or the sum of (i) the present value of the $12, 000 which would otherwise assumed to be due on January 1, 2025, discounted once at 5%, or, $11,400, plus (ii) the present value of the $12,000 which would have otherwise assumed to be due on January 1, 2026, discounted twice at 5%, or, $10,830, plus (iii) the present value of the $12,000 which would have otherwise assumed to be due on January 1, 2027, discounted three times at 5%, or, $10,289. Notwithstanding the foregoing or anything to the contrary set forth in this Agreement, under no circumstances whatsoever shall the Companies be required to pay, or shall Contractor be entitled to receive, any payments hereunder that would be nondeductible to the Companies under Section 280G of the Internal Revenue Code of 1986, as amended, or any similaz or successor statute, regulation or provision. In the event of a termination of this Agreement by the Companies pursuant to Section 6.2, the regular certified public accountant of the Companies shall determine the Termination Payment (and the deductibility thereof by the Companies), and his or her determination shall be binding upon Contractor and the Companies. 7. Confidentiality. 7.1 Non-Disclosure of Confidential Information. Contractor recognizes that each Company's business interests require a confidential relationship between Contractor and such Company and the fullest practical protection and confidential treatment of all trade secrets and all confidential or proprietary information. Accordingly, Contractor agrees that, except as required by applicable law or court order, he will keep confidential and will not disclose to anyone (other than the Companies), or publish, utter, exploit or make use of (or aid others in publishing, uttering, exploiting or using), or otherwise misappropriate, any trade secrets or any confidential or proprietary information of either Company at any time. Contractor's obligations hereunder shall continue both during and after the expiration of the Term. 7.2 Return of Confidential lnformation. Upon termination of this Agreement and at any other time upon request, Contractor agrees (a) to return any and all confidential or proprietary information to the Companies including, but not limited to, all financial information, written materials and drawings and all copies thereof, and (b) to cease the use of and permanently delete and destroy the electronic embodiments of any confidential or proprietary information contained on any computer or hard drive, together with all disks, printouts and copies of the same and all analysis based on such confidential or proprietary information. At the time of return of the confidential or proprietary information to the Companies, or the destruction of the aforementioned materials, as the case may be, Contractor shall certify in writing to the Companies that Contractor no longer has in his possession, directly or indirectly, any of the aforementioned materials. The return of the materials shall not affect the obligations of Contractor to treat the confidential or proprietary information received by him as confidential and not to use the same, and Contractor agrees that all such materials are at all times the property of the applicable Company. 8. Noncompetition and Non-Solicitation. In consideration of the terms and conditions of this Agreement and the Purchase Agreement, Contractor agrees that he will not, directly or indirectly, on his own behalf or as a partner, officer, director, stockholder, member, employee, principal, agent, advisor or contractor for any other person, firm or entity, during the Term, and for a period of one year thereafter: 8.l engage in any line of business which Productions engaged in during the Term, or otherwise compete with Productions, in any market within which Productions did business at any time during the Term (the "Restricted Area"); 8.2 solicit for himself or any other person, firm or entity (other than Productions) the business of any customer of Productions, which shall include any prospective customer which Productions solicited to be a customer at any time darting the Term; 8.3 persuade or attempt to persuade customers or prospective customers of Productions to discontinue or reduce their business with Productions; or 8.4 solicit, hire, entice, aid or cooperate with others in soliciting, hiring, enticing or aiding any employee or independent contractor of Productions to leave Production's employ. Contractor agrees that the restrictions contained in Sections 8.2, 8.3 and 8.4 above have no geographic limitation. Contractor agrees that the restrictions contained in Section 8.1 above are geographically limited to the Restricted Area. As part of Contractor's engagement hereunder, Contractor expects to develop relationships with customers and potential customers of Productions and to enhance significantly Productions' goodwill with its customers and potential customers. These relationships and goodwill, if utilized by a competitor of Productions, would unfairly disadvantage Productions. Therefore, Consultant further acknowledges and agrees that the covenants contained herein are reasonable in duration, territory and scope to protect the legitimate business interests, goodwill and relationships of Productions. 9. Miscellaneous Provisions. 9.1 Notice. Any notices required or permitted to be given under this Agreement shall be sufficient if in writing and if sent by U.S. mail to Contractor at his last-known address as shown on the Companies' records, or to the Companies at their principal offices, as the case may be. 9.2 Entire Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and any and all prior agreements or understandings between the parties on the same subject are hereby rescinded and made null and void by mutual agreement. 9.3 Heirs, Successors and Assiens. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns. Neither this Agreement nor any rights of the parties hereunder may be assigned by either party; ~ovided, however, either Company may assign this Agreement and its respective rights hereunder to a successor of substantially all of the assets or membership interests of such Company (whether by merger, sale or otherwise). For the avoidance of doubt, following the assignment of this Agreement by a Company, the restrictive covenants, terms and conditions set forth in Section ~ and 8 above: (a) shall continue to bind Contractor in accordance with their terms; and (b) shall be enforceable by the transferee to the full extent that such covenants were enforceable by such Company. 9.4 Severability. If any term, condition or provision of this Agreement shall be found by any court of competent jurisdiction to be unenforceable, in whole or in part, the rest and remainder of this Agreement shall be and remain enforceable to the fullest extent allowed by law as if such unenforceable provision had never been contained herein. 9.5 Governine Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the Commonwealth of Pennsylvania, without giving effect to any conflicts or choice of law provisions that would cause the application of the domestic substantive laws of any other jurisdiction. 9.6 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. Any counterpart signature page delivered by electronic means or by facsimile transmission shall be deemed to have the same force and effect as an originally executed signature page. 9.7 Remedies; Specific Performance. Contractor acknowledges that the provisions of Sections 7 and 8 are reasonable and necessary for the protection of the Companies and that the Companies will be irrevocably damaged if such covenants are not specifically enforced. Accordingly, Contractor agrees that the Companies will be entitled to injunctive relief for the purpose of restraining the Contractor from violating such covenants (and no bond or other security shall be required in connection therewith) in addition to any other relief to which they may be entitled under this Agreement. 9.8 Survival. Sections 7, 8 and 9 of this Agreement shall survive the termination of this Agreement. [SIGNATURES APPEAR ON FOLLOWING PAGE] 6 IN WITNESS WHEREOF, the parties to this Agreement have caused their signatures to be set forth below as of the day and year first above written. PRODUCTIONS: BARKLEIGH PRODUCTIONS, INC. By: Gwen Shelly, President MANAGEMENT: BARKLEIGH MANAGEMENT GROUP, INC. By: Gwen Shelly, President CONTRACTOR: Thomas G. Liddick, Sr. Signature Page to Consulting Agreement 214 Senate Ave 7th Flaor Camp Hill, FA 17011 direct 7177301800 faz 717 730 1894 roll bee 800 237 1700 MorganStanley SmithBarney December 31, 2012 McNees Wallace & Nurick, LLC Attn: David E. Gruver PO Box 1166 Harrisburg, PA 17108 Re: Date of death information for Sally J. Liddick Dear David: Our records indicate that Sally J. Liddick maintained two accounts at Morgan Stanley Smith Barney on the date of her death. The following is information for each account: 724-68570-30-790 -The account was a Roth IRA account opened 06-28-2001. The account value was $6,380.78 based on the closing price of securities in the account on OS-27-2012. Assets in the account were: 145 shares of CNO ($6.79 X 145 = $984.55), 12 shares of AAPL ($447.28 X 12 = $5,367.36), and 60 shares of AIB ($.95 X 60 = $57.00). There was a negative cash balance of-$28.13. Thomas Liddick, Sr. was the primary Beneficiary on the account. 724-66514-12-790 -The account was a Simple IRA account under the Barkleigh Productions Inc. plan. The account was opened 12-09-2004. The account value on 01-29-2012 was $85,320.54 ($85,320.10 principal and $.44 accrued interest). The account was all invested in our Bank Deposit Program money market. Thomas G. Liddick, Sr. was the primary beneficiary named on the account. Please call us at 717-730-1877 (Marilynn R. Kanenson) with any questions. Sincerely, ~~~ Bill Barton Client Service Associate for Marilynn R. Kanenson Vice President Financial Advisor Mogan $nnlrySmirh Bamry LLC. Man6cr $IPC.