Incentive Capital v. Camelot Entertainment Group et al

Filing 1

COMPLAINT against Robert P. Atwell, Camelot Distribution Group, Camelot Entertainment Group, Camelot Film Group, Steven Istock, Jamie R. Thompson (Filing fee $ 350, receipt number 4681043112), filed by Incentive Capital. (Attachments: # 1 Exhibit List, # 2 Exhibit A, # 3 Exhibit B, # 4 Exhibit C, # 5 Exhibit D, # 6 Exhibit E, # 7 Exhibit F, # 8 Exhibit G, # 9 Exhibit H, # 10 Civil Cover Sheet) Assigned to Magistrate Judge Paul M. Warner (lnp)

Incentive Capital v. Camelot Entertainment Group et al

Doc. 1 Att. 2

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I'romlslaaNot.
IerNLolp
$650.000.00

AprU27.20'0

FOR YAWS RBCBlVSD, CAMELOT llJLM GROUP. INC., · Novad. corporttlon qualtoed to do business In California wIth a p'ace ofbultneas at 10 Unlver.al Cl~ Piau NBClUnIYel1lI Bulldfna. "JJl* Ploor. Unlver.11 City. CA 91608 e'BOlfOlNt'), shall pay to the ordor otINCINTlVB CAPITAL, LLC. · Utah Umlted llabJllCy company with a plaoo ofbualnon at 2755 B. Cottonwood Parkwil. SUlto 100, Salt Lake City, UT 84121, and Its IUccelion! and aalgna f'L.dst,). tho prll'lOlpalamount otSlx Hundred Fifty Thousand and NO/IOO Dollars (1650,000.00) pJus IntolO81 fi'om this date until pafd. Tho prloolpa_ amount toaethor with accrued Interest d,ereon ahall be duo and payable on January 31, 2011 (:,Mtlt"fltt'. LondoI' has advanced tho initial prlnolpal amouDt 0($500.000 to Bono\Yor. WIthin tourtoeA (14) day' from tho dato that Borrower mak. at 1000t 0110 ''DlslrlbuUon Payment" (donned Wow and In tho Seourl~ Agreemem. Incorporated horeln by this rotbroneo, to LondoI'II lot fortll herein and In tho 8eourlty AgNemont. Lender shan advaneo $60.000 to Borrower f'AdtlltloRtrl PIlI.' A._lInf'); the lUIalnlDg $90.000 (the $150,000 conadruttna tho ftOpUtrllOlltr1 AtI'IIIlCtr) thal1 be dkbumd to Borrow8l'18 foUow.: $45,000 to Borlowor Oil or before May 27, 2010, which ahaU bo oondltloned upon (a) Borrower'land GUarantor.' performance or.1I other obllaatloJl8 under thl. Noto and tho retateclloan. documonrs oxccuted comnmofttty horewlth (tho "Ltltnl Doc"""n"'); and (b) all repreael\tatloDI,nd warraoUos by Bormwor and the Ouarantol8 In tho Loan DOOUInCHtts belRa frue and acoaralo; and $45.000 to Borrower on or b.foro Juno 21. 2010. whloh .hall be condItioned upon (0) Lendor'. re&lOIlIblo satisfaction with Borm\W1", efrorta to exploit ahe Liberation Assell bolna purchased with the Inllial prlnclpalac:ivance hereunder upon confirmIng that all of the repreaentaU0II8 and warrantloi 01 BorroWll' aro lCOurate and upon roceMIlI at least one other (a aecond) dlatrlblltlon payment on the 10% of aro.. (doflned I I tho ''Dllb'lbutlon Payments,? set forth In tho Security Agreemont (Incorporated haIR by (fib roCorenco). Any and all Dlllrlbutlon Payinontl to Lender must be aocompln1ed by vorifiablo documentation Iupportlna tho cateulalfon of tlto dlsfdbuaton amount. In other words, tho Dlslrlbation Pl)'mcnt must aotually be dedved ftom 10% otlb, arou f6vonue gonerated trom the oxplolratlon otthe Library as f.\Jrlher lot forth In til.. and the other oonfoDlpOraneoUl dooumenb extouled herewith. Inlereato Borrower ahall pay (atOM on all prloclpal amounts advanced hereunder It tho rato of onund one-halfpercont(l.SO") por month. -All computallona orfnteroat ,haU be mldoon tho basis ofa 360-eJay year and paid tor tho actual numbor of days elapsed. Whether or not this Nolo f. prepaid. Borrowor shall pay Lender itO Joss than .Ix (6) months or fntoreat - or nfno percent (9H) - on tbtl prlnoJpal amount advenced hereunder. 'aymea'" Commonoina May 27, 2010. aocl (IOnnnulns on tho 21* day ot eaob consecutlvo month untU Maturity. Borrower sllall ply Intoreat thon accrued and unpaid on tho outstandlna baJanco of this Noto. At Maturity or e&o earllor Recoloratlon of this Noto, BorrowCI' &ball pay Ute entfro principal amount, plus til acorued and unpaid Interest and fees duo as sot forth in tbo Loan Dooumon.. horalnaftor donned. Borrower .halt make an payment. on this Noto to Londer at Its address atated above, or at .uoh othor place all tho Lel.dor or any otber holdlJl' ot this Note ma,y designate. BortOWll' may make propaymellts of prlnofpal at any time. For Illly paym~nt duo under ibIs Noto not made wIthin ton (lO) Busrnes. Day' after It. duo date, Borrower ahall pay a Jato fee equal to Ibo greater otfivo poreeDt (5%) or lito amount oftho payment lIot made or $50.00. Londer shall apply all payments reoolveci on this Noto to any unpaid Jato obarsot and prepa)'ment premiums (If any). acorned and unpaid 'nterut Ihon duo and owIn& .... tit. 1OductIo. of plnclpal .rlhl. Nate, In .... order .... In ...........fI .. Lender

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dotormfne ftom tbno to tlmo. Tho BUm or IURII Mown on Lenclofa records ,hall bo Nbuttably p.roaumptlve oftho corccot unpaid balanco orprfa.oIpaland Intoroal on th·· Note. If any paymtIlt comet duo on a day that I, not a Buataeas Day. Borrower may mab tho pa)'RlOnt on tho flnt Buslnoss Day following tho paymont date and pay tho adclltlonallnterut accrued to tho date or payment. t\Bqslneas Day' means a day ortho )Iou on "hlob bank, Ire lot required or authorlzod b)' law to oIoso In Salt Lako CI\Y,Utab.

I'eu. AI additIOnal consideration for tho oXlOlIIlon oforedlt by LoncIer ovldonccd by thil Note. Borrower Man pa;y Lender (a) a 0I08ln8 tee. and (b) an odalnatlon tea, eaoh In tho amouRt of Sixteen Tho_ltd Two Hundred Fifty Dollar. (116,250.00), tor a toCal otTbfrty Two Thou8ancl Plvo Huncfred Dollars ($32,500.00), on or bofoN tho dato otMat\lrlty. The .ald closrnS too aad oriatnatton teo lbaU bo Inclucled In the prInoIpaJ amount ofthfs Nolo and shall bo doomed a pdnolpal adVlneo undor tho tom. of til" Note, and said toOl ahaU boar Interest undor this Noto IS lOt totth heroin lbow. M ftlrthor cansldoratlon, $20,000 In 10&11 fees shall bo wllhheld by Lender as follows: $10,000 &om die Additional Ptlnolpa[ Amount; $S.000 ftom the Mq 27,2010 Operational Advance,; and $5,000 nom tho Juno 21, 2010 Operational Advanco.
Detault Rate. At Lendor', olectlon, without notice or demand. Borrower thall pq InIoralt at tho ralo otlbre. Ind ono-haltpomnt (3,sOCK) per month f:'Dd'tlnII RII"" on the outat8lldlna balance old. Noto durinS lb.. perlod that lOY Bvent of Default oxlats (as doffnod bolow). on put duo Interest on this Noto, on all other amounts pa;ye.blo 10 Lender by Borrower In COInectlon with tbl. Note, and on any un.atlsfled Judamtnt on this Noto. In no event, however, shall tho Interoat rate on lh.. Nolo oxcad tho

hlahcst rate poanUted It)' law.

Warl'llltl.. Tho Bortower and each Guarantor liorounder repro&entl and warrants 10 tho LendOl (whIch ropmOAtlltons Ind warrantlll wlillurvivo Ibo dol1vel1 ottho Note) that:
1. Borrowor and Gual'lnb'a are each corporatloas duly oralDfzod, yalldly existing and 1ft sood atandlna under tho lawl of tho State of Incorporation or each IS lOt forth heroin and It·· aU requisite pOlVOl and llithorlty to own lla property and to oany on Its bUllnu, as now bolDS conducted, to execute aad doIlvor till' Noto and all other Instruments, agrcemonfl, and documents entered Into tom limo to tlmo, oyldenolna or securing thfsloan or any obllptlon otpa)'lMllt thereofor performance otBorrowor'a or GullUto,.' obllaatlons In connection wIth tho tnmllotlons contelDptated hereunder, eaoh .. amooded (collcotlYely referred co as "Lon" DtHlIlllIIIIfI." and td caR)' out tho provIsions and. conditions ot tho NolO and Loan Documents. Borro\VOl I. duly qualified 10 do bu.ln08l and I, In ,GOd *"<ilngln OWl)' Jurisdiction \¥hero tho ~Uuro to 80 quallt)r would hayO · material advcmco efleet.

2. Borro\VOl and Guarantor. have ibll power, authority and logal daht 10 Incur tho obltaallons provJded for fn, and to oxeouto and deliver and to pertonn and observo lho terms and pnwl.loul ot this Noto and tho Loan DoeumoJda: oacll of them has been duty ououted and dollvered by ~orrowor and Guarantors and havo boon authorJxect by all required action; Borrower Illd Gntreillora have obtaIned all requisite conSChts to II" translctlons contemplated theroby; and thf. Noto and tho Loan Docu,." consOtuto tlto Joaal, valid and binding OOII88tI008 of Borrower and Ouarantora enfol~eabl0 qatnst Borrower aad Guarantors In accorcfanao with dloJr rospectlV6 tennl, except u the enforceability cheroot may be limited by applicable bankmptoy, Insolvenoy or othor Ilmllar law. .meting crcdltoW daMs
Boncwlly.
3, Neither tho exeoutlon and delivery orChis Note and tho LOlln Document., nor the contpllanco byBoml_..d a..-wIth Iboto.....ncI~"... of,hl.Noto and Iho~Do_~

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COJIIUtnlUMlon of tho bnaaotlons eontemplated thereby, will confUot wIth or nault In a brttoh of tho or incorporation or Codo of ttoaut.Uont. If applicable, or other lovemlllI documenca of Borrower or OUllUtorI, or any altho term., OOlldltloni or provIsions of any aarcement or In.truttlel'lt or any charter or odler corpot'Ite Nllrlollon or taw, l'OIalaUon, ralo or ardor of any lovornmental body or ."0), to which BOffOwcr or GUlU'al\tOll1l'O Iowa party or IllUbject, or impositIon ot a lien, ohatao or tnOumbrlnco of 8ft)' nature wballoovor upon any of the property or asseta of Borrower or Oua_ora pUiluant to tho term. of any IUOh aareomont or InItrumORt.
AItioIOI

4. No consent, approval··QthorlzatloR or order or any court or aovommentat .noy or bod)' I. "",ulm! tor tho coDlummatioll. by Borrowor or Ouarall.tOl1 of tho lransactlona conCompJattct b)' Chll Note and the Loan DocumtnW.
$. NeIther tho Borrowor nor .ldler of Ihe Ou,ramo... t. (I) In materl,l dol.alt unclor any Jndenturo or oontraot or aaroement to wbloh It I. I P8l1iY or by whloh It I. bound; (Il) In vlolaUoa of III ertlcfos at Incorporation or Code ot Regulatton., .. Ippllcable, or lay other aovonlll1l documcnt~ (Hl) In. dotault wilh rupeot to any ordor, writ, Jl\Junotioll or d~ ot any oourt: or (Iv) In .....t undor any ardor or !leonao ofany foderal or Ita«. aovommontal deputment. 'Ih0l0 ext.. no oondillon, ovent or act whloh cOMtftutol, orafter notIc. or lapse of'tlmo or boUt would constItute, an Bwnt ofDofault.

6. The Borrowar hal ftaml,W to the I..ender f'lnanolallllUmptlons whloh, In tho Of:'Ilnlon of Borrower, J'ilrl)' and accuratol)' reflect the On__1wumptlons for tho oporatlOlll of Borrower. and tbert hu betll no materIal advcra ohanp In .ho Borrow. Rnallol.l prospeota alace that cillo whloh

would requlrt rtvltlon ofthe tame.

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7. Tho Borrower representl and \\'Irran" tbat tho Intemational ··tos projeotlons pmlcualy provided .,yBorrower fa comaeotlon with tho partlos' initial tonu ahcot 1h111 not vary by mort tblll2$% leSt than that Mproaented thereIn on tho "tlmaced Jowvalue and .hort tonn at.. potentlellO% colulI1III. Acopy ottho·lnternallonal.a. projections I, attached l1e..to II Bxblblt A.
CoI1ateralIOull'ftntlel. Borrower hal lOOured thl. Not. with one or more 8eourity qreeBlOIlll of evell dato herewlth. Thll NOie Is auaranCeed bf each of (a) Camelot DI.trl&utlon Group. Ino··· Nevada oorporatJon quallOad to do buslnesl In California with places of bUllneu at 318 North Cmon SlIeef. Suite 208, Carlon Clty, Novada 89701 and at 10 Unlvcr1l1 City Piau NBClUn1venal Sulkllna, 20* Ploor, Unlvoraal Clt;y, CA 91608; (b) Camofot BntertalmMnt Group, fno·· a DelaW8rO corporation quallt1etl (0 do business In Callfbrnla with a place otbuelnOillt 10 Unlveraal Cft;y Pfaza NBClUnlvora11 Bundlng, 20* Ploor, Unlvcrlll City, CA 91608; and (0) Robort P. Atwofl, wIth an address at 28852 Rockport Dtlvo, Laguna NlauoJ, CA 92671 (Individuallyand colleottvoly. "01tIll'tlttttl"n) under anranty agreomtnCI ot oven date herewith. A. used In tht. Not.. tho term "Oblfaof' mt1R8 (I) a ptI10D whoao otedlt or aay ot whOlO property ,. pled,ed to payment at thl. Note and Includos, without limitation, ..ny Guarantor; and (II) any .tpalol')' to 8 Loan Document.
Evel", or Dofault. Tho ocourreaco orany ono or more oftho foUowlna oYents lhall constltuto an Bvent ofDofiult undor th. Noto:
J. It Ca) tho IntolUt hereunder or It\)' commitment or other 1\0 duo undor tho Loan Document· ·haU not be paid lu ibU punclually whon due aad payablo or wllhln five (5) Bualrtosl Daya thereaftor. or (b) tho prInolpll hereof.hall not b. paid In full pullCtutUy when duo and payablo.

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2. IfBorrower or uq Obligor ftl'. fo portocm. or oblOtVe lILY covenallt or. . . .nt (odler *'n .. m'errcd to fa (1) above) COIltIlned In chll Noto or ,,, any other or tho Loa" Documonta, and IUCh. failure ~atns unromodlcd for thIrty (!O) daya after tho Lender IIvoa noUoe tboreot to Borrower or .uch ObUsor.
3. If any .-presentation, wanu~ or _toment made In or purauut to till' Nolo or IllY Loaa Document or any other material Information fUmllhecl by Borrower or any Oblfaor to or ID)' other holderof thf. Noto, .hall bt mat.....Uy falM or CICTOROOUI.

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-i. It(8) auy matorlal .-,lIton, In ,helOle but I'OIIOIlIbl. opIaton of IAndtr, ofaldl NOlO or aD)' Loao Dooumonl ,hall at any time for any I'OUGft c-..o to be valid, blddlna .... entorceablo ....t Borrower or any Obllaor; (b) tho vaUellly, blndlq ofl'eot or enforceabfll., of this Noto or any Loan Document qalftIt Borrower or any Obligor .lIan he CO_led by Borrowor or any Oblta« without lopt juatU1caUon: (0) Borrower or Ill)' ObUaor ,han dell)' that It hu aD)' or fUrthOl' IIlblllty or obligation tlIorouador without Iopl Juatlfioatlon; or (d) any Loaa Document shin be termlnatld, Illvalldated or tet IItdo, or be declared lntffectlYi or !aoporatlYi or In 101 way ooue to .Ive or provide to Loader the btnofltl pur.POJ1ed to be oroated thereby without lopljulftfiOitlon.

S. If any OVIDt ofd,fault or default .haU occur under In)' odIer 101ft DooumeIlt. or Wader ally Loan Document any payment Is required to bo mado by Borrowor or Ill)' ObU.or on demand of'Lendotj luch domand .. _do but lnob pqmOftt fa not made. 6. ItBorlOwor ,hall dofault fn the payment otprlnoIpal or InttreIt duo and owlaa upon Iny other !lalerlal obUptloa tor borrowed money. beyond any period oraraco provided with ftIPCICt tII_o or In tho partormance or obaorvanco ot 1ft)' other alfOOD\OIlt. «onn or condition concala" In Illy aarcoment WIder whlob .uo1t obllaatlon fa created. If tho .ffect ot IUOh default Is to allow tk. accolonllon or the matud., of auab 1ndobtecI""1 or to permit tho holdor thorcot' Co cauee.uch Indebltdnoa to beoomt 4ue prior to Ita.rated maturity and .uoh dorault Is not cured by Borrower.
7. A flual JudamOftt or ordot tor tho pl)'II1Ont of. matorlallmOUllt of money than be rendered aplnlt Borrowor or 1ft)' OblilOr by a court of competent JurladfoUon. that nmalot UIlpatd or unacqed and undlscharaed tor a podod (during whloll oxcoutlon Ihall not be ,ffectIY~ atqocI) of thirty (30).", after Iho date on whloh dJo daht to appeal hal expired.

. 8. Thoro ,hall have occurred Iny condlclon or ov.nt thlt Londer roa.onably doeennlne.s hal or II ralonably likely to have I matorlll Idveno efftlct on <a> tke bUlln., operation., property or CIOJKfltion (ftnanolal or othorwfa) or proapecla of BorrowOr; (b) the hUlbloss, oporaUOIIt, property or coRdll1oll (financial or otherwise) of Borrower and Ita .uhlldiarias, It any. liken u a whole; or (0) the va1ldlty or ontoroeabUlty of thlt Nolo or any ot tho other Loan Document. or abo rlghll and remedlea or Ltnerer
h~uDdoror~ndor.

,. It Borrow,r or any Obl1aor shall (a) dlscontfnuo bulln...., (b) pnorally not pay Ira debts IS a1lOh dobls becomo duo, (0) make ft general I'.'anmoot for tho beatefit of credItors, (d) apply for or consent to the appointment of. rocolvor, a auatodlaa, a Iru.leo. IttlntorJm trustee or IIquldltor of all or I substantial part ot Ita useta, (0) be acUudleatod a d.btor or klvo enetrcd . .Inat It In OId.r tor rollef undor Title 11 of tho United 8tllO$ Code, I. tho limO may bo lmended from lime to time. (f) file a voluntl1)' potltlon In banknrploy or tllo · poIltlon or an answer IlS,kIRa roorpnlzatfon or 1ft If_gomeRt with Ottdhora or mini to tako .dvIR..,e ofany other law (wbether fedoral or ltate) relllln. to roUolor dtIMort, oradmit (by 8........ by dot· ·1t or ot~.) tho IDItariololhaaUOIII or. petIt~ III.. ~

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In lIlY bankruptoy. reorpnlZltfon, Il1IOlwnoyor odler proccecllng (whether fWenll or Itatt) nlailla to relief ot debtors, Cal au. or permit to continue ~ and In ofreot (or thirty (30) any juclgmonta deer" or order ontAlrod by a court of comptltnt Jllrlsdlctlon, Chit approvtI a ptlltlon seelelng Its roorgantutlon or appoln·· I recelftr. ouatodJau, truatee, fDterlm Witte or liquidatorotall or a ,ubatanda' part of lesallotl, or (h) ttke any action In order th~by to offeot any of dlo toroaoktL or omit to tak, any aoUon In ordor to ...Yont any oltho foroaoln.

oonstoUtIvt.,.

R.llIec11e1 "pon Deta"lt. If any Bvont of Dor&ult .h.1I OCCQr, Loader IRq, It Itt election, and without clemlad or noeb ofany kind, do any one ormorl oftho tollow1ua: 1. Declare an or tho Borrower'. obllptlonl to Lender under 1I1I. NOlo IJIUt\edlttoly due aruI pa,yabJo. whereupon all unpaid prtnolpal, Itttcfost and re.. In of thll NOlO and tho LoIn DooumonCl, toaethor with all of Londer'. COJtt. expenl. and lttOmoya' feel ntated thereto. undtr Cho terms ollili. Note or othenvIao. shaD be immediately duo and pa)'ablo;

".peat

2. Bacorol.. any and an rlafaCt ud rcmcdfea avallablo to LoAder undor any appllclble laW;

3. BacerollO any and all rlabCl and remeclloI ....lod to Lender under the termt ot Ihla Noto Irtd any otlil. other Loan Doownenfl~ ancflor

4. Sot ofJ'dlo Uftpald balallOO ltommder qalnst any debt owlna to Borrow« by the Lender.

Oovera'., Law. Tltls Nato ahaU bb COUItnaed and ent'cnod undor tho IIwI otlhe State of Utah an4 any appllcable ftMIerallawa. 11me Ja ottho os. .co In tho ~t ofthfa Noc.. All .... perfodlln thtl Note and all other Loan Documonfl .hlll nm CODOUmNltly.
Notle... All notlcos, teqUOlCl, domanda and other communlcatlona provided fOr boreUDder thlil bo In wrItIna and,'tCo BolTOWOl'. mailed or doIlvemt to It, addrened to It at tho addl'lll Ipcoiffoct on tho _Ignal_ .,.. otdda Note, or If to lAnder, malted or deltveml Co It, addroned to tho ICfdl'lll or Lender .peo1fted on tho hot palO of this Nolo. All notlcti, 'Iar.montl, roquell8, domina and other communfcadona provIded tor horeund....hall b. d.ned· to be atvOll or mado whon delivered or forty. olaht (48) IIOUI'I after Dolns deposited In tho ,..U, with poataao pNpAld by roalltered or COdlfted mal~ .drossed a. If'oreaald. or sent by faOlfml1o wlCh telophcmlG eoulInnatlon or recolpt, oxoopt that notices &om BGn'O'wer to LMder purluant to lay 01 tho provlafoaa hereot.haU not be eft'octlYo until rtCOIvcd by Londer. Blndlll, Bffeet. 1111. Note .blll bo blndln. upon tho Borrower and upon Borrower'.....pecltve helra. IUCCOIIOI1, ..sIan. and legal ropresentaUYOB, and aball Inure to 1110 bODeIlt of tbe Lendor and Its IUCCIIIOI'It ondornea and 'I'lana.

Ameadm.ag. Any amendment hONor musl boln wdtina tmd .Jped by the party .mlt wltcm enforcomont Is loupt, Unonforeclblltty ot any provision hereoflhall not afFect tho enforceabWty OhDY othor pl'OvJslon. A photoaraphlc or ok roproduotion of this Noto may be made by tb, Ltador, and any IUch l'4producllon ,han bo admJnlblo lit ovldonco "lIh lIIe ame ofl'oot I. Che oriah,allCaolt In any Judlcl.l or achnlnlatratlve proceodlna, whether or nol the original II In oxlstenco.
Jlldtmalfleatlou. In 'oolllidoratlon ofthl,loan. Borro\vor horeby ~Ieaua and dJlOhlf8U Leader and Ita Ihlroholclors, directors, office.... omployooe, allenta Ind attorneys (colleotlycly, "R,III,edPIIrtlli?
ftom any and aU olalms, demand., Uablllly and oaUIOI of 100Ion whets06YOr, now known or unkIlown,

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Id'lna out or or any \Yay roIated to 10)' or tho Borrower's obIlptton. hereunder or under tit, Loan Docomlllts provided tho Leu Dr compiles with Ita obllaatlona to BoITOWOt uncJer "". Note tncI tb, Loan Document·· Borrower ahaUlndemalty. dttUd Ind .botd ftanntoII tho Lender lAd the R.latod Parties .Inlt ID)' olafm btouabt or threatoned ...last the Lender by tho Borrower, a..y aulrantor or ondoraer hereof, or any other porIOn on Iccount cfI..oa.dor'. roJ.Uonsldp with the Borrower or any OUarantor or endoner htlOOf' provided the Lender complies with lI.t obllptlorll to Borrower UDder this Note ucl the
Loan Documenll.

No Waiver. Nono at tho to1lowtl18 wUf be I coo", of dellln,. ..tappeJ, waiver, or Impllod amendment on wldob ID¥ patty to «hll Nato or any LoIll D001ltneftt may roIy: (1) Lendertl IOC.pCanc. of 0Il0 or mom Jato or putlal payments: (2) 1..encIr. fbrboaraRCI ftom exerol.loa any rIaht or rontcdy under ddt Nato, or uy document proyldJna aeoi1r1ty tor or prallty otnpa,ment ofthla Note; or (3) 1Aacfef. forbearanco ftom exerolllns any dahl or remedy under this Nato or Ill)' Loan Document OD . . He or more occasions. I..ondot-. uerol. of any rlShti or rtmedlu or a part of I daht or remedy on ODO or more occasfonl .hall Dot pruludo Londer ftotn oxorolalng tho dabt or remedy at Iny otber tt.no. Lader'. rlabc, anel remedlo8 undor thlt Note, tho Loan Dooum.ents, and tho law Ind In equity are outnulatlw to, but Independ.nt ot, oloh other. COIta. ExpeDl",.,,, and Taw. Borrower 1gees to PlY on demand all COlla Ind OXPORlOl of lAndor, Inoludlng but not tlmlted to Ca) admlnlabatloD, travelllld out-ot-pookot _penaer, InckKIlq but not limited to maonabl. aUOrnoya' h and oxponlOl, or Londot III connection "lib tho proparatlOD, l1I8ot1aUon and oloIJna ot tho Loan Dooumonta and the admlnlatratlOll of tile Lo.n .Document.,. tho colleotlOil and dflbuaoment or IU Auld. hetOunder and tho other laalrultleslW od dooumonCa to be doilVORd hereunclo" (b) oxtrlOMInaty upon... ofLendol' III OolUlectlon with tb.ldmlDIItratIOll of ddt Noto and tho other Loan D001lmoRCt, (0) the roaaonablo fCoa and out-oJ.pookot oxpeDtOl cf apeolal count.1 for Lendor. If an,y, with rotpeot to tho foreaoJn.. and or Ioott 00UIl101. It al)'. who mq bo retained by nId .pcola[ GOUDIe! wIth reapect thereto, (d) In feee duo III lay of tho Loan Dooumonw..nd (0) all COIla and OXpaBlo, InoIudlq rouonablo attornoya' ~ In connection with tho detennlnatlon 01 Lendor'. llen prIority In In)' coUat....llOOIIrm, chi. Note, or tho natruoturlna or enftntmtnt ottbf. Note or Iny Loan Documont. In addItfon, Borrowe, Ihall PI.)' 1ft)' Ind aUltimp and odIor taxoa and ... payablo or ctetwmlncd to be payablo III conneotlon with lito IXtCUtlon Iftd dellv.ry of 1ft)' Loan Document. and tho otbor inatrumeall and doouments 10 be delivered hereunder, .nd IIJ,I'tII to hold Lendor harmloa nom IDd aplDst any and aU lIeb1l1t101 with rospeot to or rosulltna from I1\)' delay In paylna or omlulon to ~ ruoh taxes or feu. Notwlthalandlns Inythtl18 to the conb'tl)' contained hereinabove, lMtder expruliy aareoa that BoIIO"'1l' _U pay Lender a cwnulallv. totar ofno mo.. thlll SIO,ooO tor an tbcI anel oxpeMOl rol'oronccd in. notions (a), (b) aftd (0) lbove upon Lender'. provldlaa Borrower with billa or InvolOl.l Cor IU.uoh &oa Ind oxponlOl. . Borrower Waive.... Borro\vor waives preaentmenl, demand, ootloo.. protest, I1ld III other demands and notices In coRneotion wkb dollvor,y. ICccptanco, performance, do&ult. or ontbrccment of this Nato.
31lrJadleUOb. Borrower "ertby Irrevocably subml.. to tho non-oxolu.lYOjurildlotton oraay Utlh atato or tedetOl court IIltllllin Salt Lake City, Utah, over Iny action or proceedlna IrlalilS out of or relating to this NOli, and Borrowor horeby Irrevocably Igrees t)Iet III cJalms In respect of.uoh lOtion or proceeding may be heard Illd deCennlned In .uch Utah .tate or federal court. Borrower hereby walv. any objoctJoll that It may now or hereafter havo to the wnue of any IUob lult or al\y such court or that such auft II brouaht In Inincol1V1nlont coul1.
iii

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. . .... :-: ......
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I
"

Sur)' Trill Walyor. BORROWBR.WA1V.BS ANY RIGHT TO HAW AJUltY PAllTICIPATB IN RBSOLVJNO ANYDI8PUTB, WHBllIBllSOUNDlNO IN CONTRACT. maT OROTHBR.WISB, BBTWBBN LBNDBR AND BORROWBR. ARISING 0lJf OP, IN CONNBCTION Wl1'H, RBLATBD TO. OR INCIDBNTAL "0 'l'HB llBLATlON8HIP BSTABLlSHBD BBTWBBN T88M IN CONNECTION WlTH THIS Nom OIl ANY OTHBR lNSTRUMBNT. DOCUMBNT OR AORBBMBNT BXBCUTBD OR DBLlVBltBD 1M CONNBCTION HBRBWlTH OR nIB TRANSACl10NSRBLATBD THBRBTO.

Borrower,

Guarotoftl

(

Camelot BnftrCafntttat Group. Inc.

1

.",.-.~.

EXhibit A

Avails by Key Territory Summary Territory
# Avail P1V

Low Uc:ense fee per
title

Estimated Total value

(low)

as (Fmr USSR)
Benelux
Bulgaria Czech FmrYugo

261 290
289

366
291 287 310 287
293

France
Germany Greece Hungary

It21y
Poland
Portugal

273
287

Romania
ScandInavia Spain United Kingdom S Africa

Thailand Middle East TUrkey Japan

Austra1ia/NZ
Latin America USA canada

289 332 291 261 187 286 292 290 265 278 269 2S8 287 296

$2,500 $2,000 $1,000 $2,000 $1,000 $5,000 $5,000 $2,000 $2,000 $5,000 $3,000 $1,500 $1,500 $3,000 $4,000 $5,000 $1,500 $1,000 $2,000 $2,000 $5,000 $3,000 $8,000 $10,000 $4,000

$654500 $580,000 $289,000 $732,000 $291,000 $1,435,000 $1,550,000 $514,000 $586,000 $1,365,000 $861,000
$433,500

$498,000 $873,000 $1,044,000 $935,000 $429,000 $292,000 $580,000 $S3O,ooO $1,390,000 $807,000
$2,064,000 $2,870,000

Short Term Sales Potential (10%) $65,250 $58,000 $28,900 $73,200 $29,100 $143,500 $155,000 $57,400 $58,600 $136,500 $86,100 $43,350 $49,800 $87,300 $104,400 $93,500 $42,900
$29,200

Med Ucense fee per title

Estimated
Total Value

ShortTenn

sales
Potential
(10%)

(med)

$1,184,000

$58,000 $53,000 $139,000 $80,700 $206,400 $287,000 $118,400

$5,000 $4,000 $2,000 $3,000 $1,500 $8,000 $10,000 $4,000 $4,000 $8,000 $5,000 $3,000 $3,000 $6,000 $8,000 $10,000 $3,000 $2,000 $5,000 $4,000
~,OOO

$6,000 $14,000 $15,000 $7,000

$1,305,000 $1,160,000 $578,000 $1,098,000 $436,500 $2,296,000 $3,100,000 $1,148,000 $1,172,000 $2,184,000 $1,435,000 $867,000 $996,000 $1,746,000 $2,088,000 $1,870,000 $858,000 $584,000 $1,450,000 $1,060,000 $2,502,000 $1,614,000 $3,612,000 $4,305,000 $2,072,000

$130,500
$116,000
$51,800
$109,800
$43,650
$229,600
$310,000
$114,800
$117,200
$218,400
$143,soo
$86,700
$99,600
$174,600
$208,800
$187,000

$85,800

$58,400
$145,000
$106,000
$250,200
$161,400
$361,200
$430,500
$207,200

Total

$22,845,000 $2,284,,500

$41.,536,soo $4,153,650

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