Exhibit A to
Note
UNCONDITIONAL GUARANTY
AGREEMENT
THIS
UNCONDITIONAL GUARANTY AGREEMENT (this “ Guaranty ”), dated as
of the __ day of September 2008, is made by LEGACY MEDIA
LLC , a California limited liability company (“
Legacy ”), and CONSUMER LOYALTY GROUP
LLC , a California limited liability company (“
Consumer ”), each having an address at c/o
COMMERCE PLANET, INC. , a Utah corporation (the
“ Company ”) with an address at 30 S. La Patera
Lane, Goleta, CA 93117, for the benefit of MORLEX,
INC. , a Colorado corporation (hereinafter referred to as
“ Morlex ”). Legacy and Consumer are hereinafter
referred to individually as a “ Guarantor ” and
collectively as the “ Guarantors .”
W I T N E S S E T H :
WHEREAS, the
Guarantors are each wholly-owned subsidiaries of the
Company;
WHEREAS, the
parties hereto are parties to the Asset Purchase Agreement (the
“ Purchase Agreement ”) dated as of the 16th day
of September 2008, by and among the Company, the Guarantors, Morlex
and Superfly Advertising, Inc., an Indiana corporation and
wholly-owned subsidiary of Morlex (the “ Purchaser
”). Pursuant to the Purchase Agreement, the Guarantors have
agreed to sell and Purchaser has agreed to purchase certain of the
assets used or held for use by the Guarantors in the conduct of the
Business in consideration of the Purchase Price and the Assumed
Liabilities (the “ Acquisition ”).
WHEREAS, in
connection with the Purchase Agreement, Morlex has agreed to make a
loan to the Company in the original principal amount of $200,000 as
evidenced by a secured convertible promissory note dated of even
date herewith (the “ Note ”) made by the Company
(the “ Maker ”) in favor of Morlex or any
subsequent holder of such Note (the “ Payee
”);
WHEREAS, as an
inducement and a condition to the willingness of Morlex and the
Purchaser to make the Loan and enter into the Purchase Agreement,
as applicable, Morlex desires the Guarantors to agree, and the
Guarantors are willing to agree, to execute and deliver this
Guaranty and jointly and severally guarantee payment to Morlex of
the Guaranteed Amount (as herein defined) at the time and in the
manner hereinafter provided;
WHEREAS, each
Guarantor agrees that it is in its best interest to guaranty the
Guaranteed Amount, and is delivering this Guaranty with the intent
that Morlex and the Purchaser rely hereon, and acknowledging that
Morlex and the Purchaser are so relying and that it is reasonable
for them to do so.
NOW, THEREFORE,
in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged by each Guarantor, and in order to induce Morlex to
make the loan evidenced by the Note, each Guarantor intending to be
legally bound hereby covenants and agrees as follows:
1.
(a) Unless otherwise separately defined herein, all
capitalized terms, when used in this Guaranty shall have the same
meaning as is defined in the Note.
(b)
Each Guarantor hereby absolutely
and unconditionally jointly and severally guarantees to Morlex the
payment in full of the Note, of the sum of (i) the entire (US)
$200,000 principal amount of the Note, (ii) all accrued interest
due thereon, and (iii) any Penalty Interest that may be due and
payable, in each case in accordance with the terms of the Note
(such aggregate sum is referred to as the “ Guaranteed
Amount ”).
2.
Each Guarantor covenants to and
shall, with or without notice or demand, (i) reimburse Morlex for
all costs and expenses (including, without limitation, reasonable
attorney’s fees) paid or incurred by Morlex in connection
with Morlex’s review and analysis of the Loan and viability
thereof for Morlex’s purposes, negotiation of the terms
thereof and of this Guaranty, documentation of this Guaranty and
related matters, and the collection of the Guaranteed Amount or any
portion thereof (whether or not an action is brought for such
collection) or in any action or proceeding brought by Morlex to
enforce any of the covenants, indemnities and obligations of each
Guarantor under this Guaranty.
3.
All moneys available to Morlex for
application in payment of the Guaranteed Amount may be applied by
Morlex in such manner and in such amounts and at such time or times
and in such order, priority and proportions as Morlex may to the
payment or reduction of such portion of the Guaranteed Amount
Morlex may elect.
4.
Each Guarantor hereby waives (a)
notice of acceptance of this Guaranty; (b) presentment and demand
for payment of the Guaranteed Amount or any portion thereof; (c)
protest and notice of dishonor or default to him or to any other
person or party with respect to the Guaranteed Amount or any
portion thereof; (d) all other notices to which he undersigned
might otherwise be entitled; and (e) any demand for payment under
this Guaranty.
5.
This is a Guaranty of payment and
not of collection and each Guarantor further waives any right to
require that any action be brought against the Maker or any other
person or party or to require that resort be had to any security or
to any balance of any deposit account or credit on the books of
Morlex in favor of or any other person or party. The obligations
hereunder are independent of the obligations of the Partnership or
any other person or entity to Morlex, and a separate action or
actions may be brought and prosecuted against each Guarantor
whether action is brought against the Maker or any other person or
entity or whether any other person or entity be joined in any such
action or actions; and each Guarantor waives the benefit of any
statute of limitations affecting his covenants, obligations and
liabilities hereunder or the enforcement thereof.
6.
Each reference herein to Morlex
shall be deemed to include his successors and assigns or any other
Payee of the Note, in whose favor the provisions of this Guaranty
shall also inure. Each reference herein to each Guarantor shall be
deemed to include the heirs, executors, administrators, legal
representatives, successors and assigns of each Guarantor, all of
whom shall be bound by the provisions of this Guaranty, provided,
however, that each Guarantor shall in no event or under any
circumstance have the right without obtaining the prior written
consent of Morlex to assign or transfer the obligations and
liabilities of each Guarantor under this Guaranty, in whole or in
part, to any other person, party or entity.
7.
No delay on the part of Morlex in
exercising any right or remedy under this Guaranty or failure to
exercise the same shall operate as a waiver in whole or in part of
any such right or remedy. No notice to or demand on each Guarantor
shall be deemed to be a waiver of the obligation of each Guarantor
or of the right of Morlex to take further action without notice or
demand as provided in this Guaranty.
8.
This Guaranty may be modified,
amended, changed or terminated only by an agreement in writing
signed by Morlex and each Guarantor. No waiver of any term,
covenant or provision of this Guaranty shall be effective unless
given in writing by Morlex and if so given by Morlex shall be
effective only in the specific instance in which given.
9.
Each Guarantor acknowledges that
this Guaranty and his and its obligations under this Guaranty are
and shall at all times continue to be absolute and unconditional in
all respects, and shall at all times be valid and enforceable
irrespective of any other agreements or circumstances of any nature
whatsoever which might otherwise constitute a defense to this
Guaranty and the obligations of each Guarantor under this Guaranty
or the obligations of any other person or party (including, without
limitation, the Partnership) relating to this Guaranty or otherwise
with respect to the Guaranteed Amount.
10.
This Guaranty sets forth the entire
agreement and