Document:

Warrant Solicitation Agreement

 Exhibit 10.2 
  
 WARRANT SOLICITATION AGREEMENT 
  
 THIS WARRANT SOLICITATION AGREEMENT (“Agreement”) is dated as of January 24, 2005, by and between Action Products
International, Inc. (the “Company”) and Brookstreet Securities Corporation (“Broker”). 
  
 RECITALS 
  
 WHEREAS, the Company desires to retain Broker to act as a nonexclusive Warrant Solicitation Agent in connection with the solicitation of the exercise of the Company’s publicly traded warrants; and 
  
 WHEREAS, as of January 7, 2005, the Company had outstanding 4,571,625
redeemable common share purchase warrants (the “Public Warrants”) issued pursuant to that Warrant Agreement by and between the Company and Registrar and Transfer Company dated January 7, 2005 (the “Warrant Agreement”); and

  
 WHEREAS, each Public Warrant entitles the holder to purchase
one share of the Company’s Common Shares for $3.00 per share; and 
  
 WHEREAS, the Company desires Broker to act on behalf of the Company, and Broker is willing to do so in connection with the exercise of the Public Warrants; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereto agree as
follows: 
  
 1. Appointment of the Solicitation Agent. The Company hereby
appoints Broker to act as a nonexclusive Solicitation Agent for the Company in connection with the exercise of the Public Warrants and Broker hereby accepts such appointment. The Broker shall, consistent with its obligations under applicable laws
and the rules and regulations of the National Association of Securities Dealers (“NASD”), use its reasonable best efforts to maximize the number of Public Warrants which are exercised, including appropriate communications with the record
owners and beneficial owners of the Public Warrants, as well as with said owners’ brokers, agents or other representatives. 
  
 2. Warrant Solicitation Fee. 
  
 (a) Amount of Solicitation Fee. The Company shall pay Broker a fee consisting of a cash payment equal to ten (10%) percent of the total proceeds received
from the exercise of those Public Warrants for whom Broker was properly designated as the soliciting broker on the Exercise Form of the Warrant Certificate evidencing the Public Warrants exercised (the “Solicitation Fee”). 
  
 (b) Conditions to Payment of Solicitation Fee. The Company shall only be
obligated to pay the Solicitation Fee to Broker if all of the following conditions are met: (i) the exercise of the Public Warrants are in accordance with the Warrant Agreement, (ii) the actions of Broker in soliciting the exercise of the Public
Warrants have been consistent with applicable federal and state securities laws, the guidelines of the NASD and applicable SEC rules and regulations, including Regulation M; and (iii) disclosure of the Company’s compensation arrangement with
Broker is made by the Broker in documents provided to the holders of the Public Warrants. 
  

 (c) Timing of Payment of Solicitation Fee. Within fifteen (15) days after the end of each month, the
Company will deliver a notice to Broker setting forth the number of Public Warrant certificates which have been properly completed for exercise by holders of the Public Warrants for which Broker has solicited in accordance with this Agreement and
the Warrant Agreement, together with payment of the Solicitation Fee with respect to the Public Warrants so exercised and any documentation requested by Broker. 
  

(d) Entire Solicitation Fee. The amounts to be paid to Broker under Section 2(a) above represent the entire amount payable by the Company to Broker,
its agents, brokers or representatives in connection with the services described under Section 1 of this Agreement and shall also include any amounts which are adjudicated to be owed to any third parties as a result of Broker’s commitments to
such third parties. 
  
 (e) Broker shall be responsible for
compliance with applicable state securities and “blue sky” laws in connection with the solicitation of the Public Warrants. Broker shall notify the Company of the states of residence of holders of the Public Warrants in which Broker
intends to solicit the exercise of the Public Warrants. 
  
 3. Representations
and Warranties of the Company. The Company represents and warrants as follows: 
  
 (a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Florida and has full corporate power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby. This Agreement constitutes the legal, valid and binding agreement and obligation of the Company, enforceable against it in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights generally, including, without limitation laws regarding fraudulent or preferential transfers, or by the principles governing the availability of equitable
remedies. 
  
 (b) The Company’s Registration Statement
(“Registration Statement”) on Form S-3 (File No. 333-120970), registering the sale of the Common Shares issuable upon exercise of the Public Warrants (the “Warrant Shares”), was declared effective by the Securities and Exchange
Commission (the “Commission”) on [date]. The Commission has not issued any orders preventing or suspending the use of the Prospectus contained in the Registration Statement and the Prospectus (as modified or supplemented by information
incorporated by reference into such Prospectus) as well as the Company’s other public filings (the “SEC filings”) conforms, and during the effectiveness of this Agreement will conform, in all material respects with the requirements of
the Securities Act of 1933, as amended (the “Securities Act”) and the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) and do not, and during the effectiveness of this Agreement will not, include any untrue
statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 (c) The Warrant Shares have been duly authorized, have been duly reserved for
issuance and upon exercise of the Public Warrants and payment to the Company of the exercise price therefor, the Warrant Shares will be validly issued, fully paid and non-assessable. 
  
 (d) Neither the execution and delivery of this Agreement by the Company nor the consummation of the transactions
contemplated hereby will (i) conflict with or result in any breach of any provision of the Articles of Incorporation or Bylaws of the Company, each as 

  

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amended to date; (ii) require any consent, approval, authorization or permit from, or filing with or notification to, any United States or foreign
governmental or regulatory authority or other third party, except for any such consents, approvals, authorizations, permits, filings or notifications, the absence of which would not have a material adverse effect on the Company or the Public
Warrants; (iii) result in a breach of the terms, conditions or provisions of, constitute a default (or an event which, upon notice or lapse of time or both, would constitute a default) under or cause, permit or give rise to any right of termination,
cancellation or acceleration under any of the terms, conditions or provisions of any material agreement or other material instrument or obligation to which the Company is a party or by which the Company is bound; or (iv) conflict with or result in a
violation of any provision of (A) any statute, rule, regulation or ordinance which conflict or violation might have a material adverse impact on the Company or the Public Warrants, or (B) any material order, writ, injunction, judgment, award,
decree, permit or license applicable to the Company or any of the Company’s properties or assets. 
  
 4. Representations and Warranties of Broker. Broker represents and warrants as follows: 
  
 (a) Broker is a corporation or other entity duly organized, validly existing and in good standing under the laws of the state of its organization or
incorporation and has full power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby. All proceedings on the part of Broker necessary to authorize this Agreement and the transactions
contemplated hereby have been duly and validly taken. This Agreement has been duly and validly authorized, executed and delivered by Broker, constitutes the legal, valid and binding agreement and obligation of Broker, enforceable against it in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’ rights generally, including, without limitation laws regarding fraudulent or preferential
transfers, or by the principles governing the availability of equitable remedies. 
  
 (b) Neither the execution and delivery of this Agreement by Broker nor the consummation of the transactions contemplated hereby will (i) conflict with or result in any breach of any provision of the governing
instruments of Broker, each as amended to date; (ii) require any consent, approval, authorization or permit from, or filing with or notification to, any United States or foreign governmental or regulatory authority or other third party, including
the Securities and Exchange Commission, and the National Association of Securities Dealers by Broker; (iii) result in a breach of the terms, conditions or provisions of, constitute a default (or an event which, upon notice or lapse of time or both,
would constitute a default) under or cause, permit or give rise to any right of termination, cancellation or acceleration under any of the terms, conditions or provisions of any material agreement or other material instrument or obligation to which
Broker is a party or by which Broker is bound; or (iv) conflict with or result in a violation of any provision of (A) any statute, rule, regulation or ordinance which conflict or violation might have a material adverse impact on Broker, including
the Rules of the National Association of Securities Dealers and the Rules and Regulations of the Commission or (B) any material order, writ, injunction, judgment, award, decree, permit or license applicable to Broker or any of Broker’s
properties or assets. 
  
 (c) Broker is familiar with the terms of
the Warrant Agreement. 
  
 5. Indemnification. 
  
 (a) The Company agrees to indemnify and hold harmless Broker and each person
who controls Broker within the meaning of Section 15 of the Securities Act from and against any 

  

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and all losses, claims, damages or liabilities, joint or several, to which such indemnified parties or any of them may become subject under the Securities
Act, the Exchange Act, or the common law or otherwise, and the Company agrees to reimburse Broker and controlling person for any legal or other expenses incurred by the respective indemnified parties in connection with defending against such losses,
claims or liabilities or in connection with any investigation or inquiry of, or other proceeding which may be brought against, the respective indemnified parties, in each case arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement (including the Prospectus as part thereof) or any post-effective amendment thereto, or the omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; provided, however, that the indemnity agreements of the Company contained in this paragraph (a) shall not apply to any such losses, claims, damages, liabilities or expenses
if such statement or omission was made in reliance upon and in conformity with information furnished to the Company by or on behalf of Broker. 
  
 (b) Broker agrees to indemnify and hold harmless the Company, each of its officers and directors, and each person who controls the Company within the
meaning of Section 15 of the Securities Act, from and against any and all losses, claims, damages or liabilities, joint or several, to which such indemnified parties or any of them may become subject under the Securities Act, the Exchange Act, or
the common law or otherwise and to reimburse each of them for any legal or other expenses incurred by the respective indemnified parties in connection with defending against any such losses, claims, damages or liabilities or in connection with any
investigation of inquiry of, or other proceeding which may be brought against, the respective indemnified parties, in each case arising out of or based upon any untrue statement or alleged untrue statement of a material fact or the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, if such statement or omission was made by or on behalf of Broker other than as provided in the Registration
Statement and Prospectus. 
  
 (c) Each party indemnified under the
provision of paragraphs (a) and (b) of this Section 5 agrees that, upon its receipt of written notification of the commencement of any investigation or inquiry of, or proceeding against, it in respect of which indemnity may be sought on account of
any indemnity agreement contained in such paragraphs, it will promptly give written notice (the “Notice”) of such notification to the party or parties from whom indemnification may be sought hereunder. No indemnification provided for in
such paragraphs shall be available to any party who shall fail so to give the Notice if the party to whom such Notice was not given was unaware of the action, suit, investigation, inquiry or proceeding to which the Notice would have related and was
prejudiced by the failure to give the Notice. Any indemnifying party shall be entitled at its own expense to participate in the defense of any action, suit or proceeding against, or investigation or inquiry of, an indemnified party. Any indemnifying
party shall be entitled, if it so elects within a reasonable amount of time after receipt of the Notice by giving written notice (herein called the Notice of Defense) to the indemnified party, to assume (alone or in conjunction with any other
indemnifying party or parties) the entire defense of such action, suit, investigation, inquiry or proceeding, in which event such defense shall be conducted, at the expense of the indemnifying party or parties, by counsel chosen by such indemnifying
party or parties reasonably satisfactory to the indemnified party or parties; provided, however, that (i) if the indemnified party or parties reasonably determine that there may be a conflict between the positions of the indemnifying party or
parties and of the indemnified party or parties in conducting the defense of such action, suit, investigation, inquiry or proceeding or that there may be legal defenses available to such indemnified party or parties different from or in addition to
those available to the indemnifying party or parties, then counsel for the indemnified party or 

  

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parties shall be entitled to conduct the defense to the extent reasonably determined by such counsel to be necessary to protect the interests of the
indemnified party or parties and (ii) in any event, the indemnified party or parties shall be entitled to have counsel chosen by such indemnified party or parties participate in, but not conduct, the defense. If, within a reasonable time after
receipt of the Notice, an indemnifying party gives a Notice of Defense and the counsel chosen by the indemnifying party or parties is reasonably satisfactory to the indemnified party or parties, the indemnifying party or parties will not be liable
under paragraphs (a) and (b) of this Section 5 for any legal or other expenses subsequently incurred by the indemnified party or parties in connection with the defense of the action, suit, investigation, inquiry or proceeding, except that (A) the
indemnifying party or parties shall bear the legal and other expenses incurred in connection with the conduct of the defense as referred to in clause (i) of the proviso to the preceding sentence and (B) the indemnifying party or parties shall bear
such other expenses as it or they have authorized to be incurred by the indemnified party or parties. If, within a reasonable time after receipt of the Notice, no Notice of Defense has been given, the indemnifying party or parties shall be
responsible for any legal or other expenses incurred by the indemnified party or parties in connection with the defense of the action, suit, investigation, inquiry or proceeding. 
  
 (d) No indemnifying party will, without the prior written consent of the indemnified party, settle or compromise or consent
to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not such indemnified party or any person who controls such indemnified party within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act is a party to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of such indemnified party and
each controlling person from all liability arising out of such claim, action, suit or proceeding. 
  
 6. Termination. Notwithstanding anything in this Agreement to the contrary, this Agreement may be terminated by the Company at any time and for any reason effective the close of the Company’s next business
day after delivery of written notice of termination to Broker in accordance with Section 7(e) herein. If this Agreement is terminated pursuant to this Section 6, this Agreement shall thereafter have no effect except for (i) the Company’s
obligation to pay the Solicitation Fee for exercises of Public Warrants prior to the effectiveness of said termination and (ii) both parties’ indemnification obligations under Section 5 above, all of which shall survive the termination of this
Agreement. 
  
 7. Miscellaneous. 
  
 (a) Survival of Representations and Warranties. The parties’ respective
representations and warranties contained in this Agreement shall survive until three years after the termination of this Agreement at which time they shall expire and be deemed terminated and thereafter neither party may claim any damage for breach
thereof. 
  
 (b) Amendment and Waiver. Any term or provision of
this Agreement may be waived at any time by the party which is entitled to the benefits thereof, but only in a writing signed by such party, and this Agreement may be amended or supplemented at any time, but only by written agreement of the Company
and Broker. Any such waiver with respect to a failure to observe any such provision shall not operate as a waiver of any subsequent failure to observe such provision unless otherwise expressly provided in such waiver. 
  
 (c) Expenses. Except as otherwise provided in this Agreement, the Company and
Broker shall pay their respective fees, commissions, costs, and other expenses, separately 

  

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incurred in connection with the preparation and execution of this Agreement and the consummation of the transactions contemplated hereby. 
  
 (d) Entire Agreement. This Agreement contains the entire agreement between
the Company and Broker with respect to the solicitation of the exercise of the Public Warrants and the related transactions and supersedes all prior arrangements or understandings with respect thereto. 
  
 (e) Notices. All notices, consents, requests, instructions, approvals and
other communications provided for herein shall be validly given, made or served, if in writing and delivered personally or sent by fax (except for legal process) or certified mail, postage prepaid, to: 
  

			
	 	  	Company:
	 	  	Action Products International, Inc.
	 	  	1101 No. Keller Rd., Suite E
	 	  	Orlando, FL 32810
	 	  	Attn: Robert L. Burrows, Chief Financial Officer
	 	  	Fax No: (419) 781-3805
		
	 	  	With copies to:
	 	  	Tarter Krinsky & Drogin LLP
	 	  	470 Park Avenue South, 14th Floor
	 	  	New York, NY 10016
	 	  	Attn: James G. Smith, Esq.
	 	  	Fax No: (212) 481-9062
		
	 Broker:
	  	Brookstreet Securities Corporation
	 	  	2361 Campus Drive, Suite 210
	 	  	Irvine, CA 92612
	 	  	Attn: Kathleen McPherson
	 	  	Fax No: (949) 852-6826

  
 or to such other address or fax number
as any party hereto may, from time to time, designate in a written notice given in a like manner. Notice given by fax shall be deemed delivered on the day the sender receives confirmation that such notice was received at the fax number of the
addressee, provided that if the faxed notice is transmitted by the sender after 5:00 p.m. (Eastern time), it shall be deemed to have been delivered the following day. Notice given by mail as set out above shall be deemed delivered three calendar
days after the date the same is postmarked. 
  
 (f) Assignment.
Except as provided in the following sentence, this Agreement may not be assigned, by operation of law or otherwise, and any attempt to do so shall be void. This Agreement shall be binding upon and inure to the benefit of successors and assigns of
the parties hereto. 
  
 (g) Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York without giving effect to conflicts of laws. 
  
 (h) Arbitration. The parties agree that any controversy, claim or dispute arising out of or relating to this Agreement shall be settled by arbitration
before a single arbitrator to be in the City of New York, State of New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. Judgment may be entered on the 

  

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Arbitrator’s award in any court having jurisdiction, and the parties consent to the jurisdiction of the courts of New York for this purpose. 

 
 (i) Construction of Agreement. Each of the parties hereto acknowledges and
agrees that no provision in this Agreement is to be interpreted for or against any party because that party or that party’s legal representative drafted the provision. 
  
 (j) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an
original, but all of which together shall constitute one and the same instrument. 
  
 [remainder of page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date and
year first above written. 
  

			
	ACTION PRODUCTS INTERNATIONAL, INC.
		
	By:	 	/s/ ROBERT L. BURROWS
	Name:	 	Robert L. Burrows
	Title:	 	CFO

  

			
	Brookstreet Securities Corporation
		
	By:	 	/s/ STANLEY C. BROOKS
	Name:	 	Stanley C. Brooks
	Title:	 	President

  

 8Promissory Note

 Exhibit 10.23 
  
 PROMISSORY NOTE 
  
 $500,000.00 
  
 January 31, 2005 
  
 FOR VALUE RECEIVED, Jeffrey R. Herold and Catherine Herold, husband and wife and as joint tenants (collectively, the “Maker”), promises
to pay to the order of The Brickman Group, Ltd., a Delaware corporation (“Payee”), at such address as may hereafter be specified by Payee, in lawful money of the United States of America, the principal sum of Five Hundred Thousand
Dollars ($500,000.00) (the “Loan”). 
  
 Section
1. Definitions. Whenever used in this Promissory Note, the following words and phrases shall have the respective meanings ascribed to them as set forth below: 
  
 (a) “Bankruptcy Code” - means Title 11 of the United States Code entitled
“Bankruptcy”, as amended from time to time, or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect and all rules and regulations promulgated thereunder. 
  
 (b) “Brickman Change of Control” - means a
transfer of the voting common stock of Payee or Brickman Group Holdings, Inc., whether pursuant to a sale of stock, merger, recapitalization, tender offer or other stock transaction, pursuant to which the Brickman Family Group is not the beneficial
owner (as set forth in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of a majority of the voting common stock of Payee where, after such transfer, no member of the Brickman Family Group is serving as Payee’s
Chairman of the Board of Directors, Chief Executive Officer, or President. 
  
 (c) “Brickman Family Group” - means collectively (i) Scott W. Brickman, Steven G. Brickman, Susan B. McGrath, Julie B. Carr, Theodore W. Brickman, Jr. and The Brickman Foundation, (ii) any spouse and
descendants (whether natural or adopted), heirs, executors, administrators, testamentary trustees or legatees of any of the foregoing individuals, and (iii) any trust, the beneficiaries of which, or any corporation, limited liability company or
partnership, the stockholders or members or general and limited partners of which, are any of the foregoing individuals and/or the spouse and/or descendants of any of the foregoing individuals. 
  
 (d) “Default Rate” - as defined in Section
7 hereof. 
  
 (e) “Event of
Default” - Each of the following shall constitute an Event of Default if it is not cured within its respective applicable cure period hereunder: (i) if Maker fails to make any payment of principal or any other sum payable hereunder within
120 days of its due date; (ii) if a default shall be made in the due observance or performance by Maker of any covenant, condition, agreement or representation contained herein or in the Mortgage (other than those specified in (i) above), and only
with respect to defaults herein, such 

  

 
default shall continue unremedied or shall not be waived for a period of 10 days; (iii) if any representation or warranty made by Maker shall prove to have
been false or misleading in any material respect when so made, deemed made or furnished in this Promissory Note; or (iv) if any proceeding under the Bankruptcy Code or any law of the United States or of any state relating to insolvency,
receivership, or debt adjustment is instituted by Maker, or if any such proceeding is instituted against Maker and is consented to by the respondent or an order for relief shall be entered in such proceeding or such proceeding shall remain
undismissed or unstayed for ninety (90) days, or if the Maker becomes a debtor under the Bankruptcy Code or a trustee or receiver is appointed for any substantial part of his property, or if the Maker makes an assignment for the benefit of
creditors, admits in writing his inability to pay debts generally as they become due or becomes insolvent. 
  
 (f) “Loan” - as defined in the opening paragraph hereof. 
  
 (g) “Maker” - as defined in the opening paragraph hereof. 
  
 (h) “Maturity Date” - as defined in Section
3 hereof. 
  
 (i) “Mortgage” -
as defined in Section 5 hereof. 
  
 (j)
“Payee” - as defined in the opening paragraph hereof. 
  
 (k) “Residence” shall mean the Maker’s residence at 2602 Triadelphia Lake Road, Brookville, MD 20833. 
  
 (l) “Termination of Employment” shall mean the termination, for any reason, of Jeffrey R. Herold’s employment with
Payee. 
  
 Section 2. Employee-Relocation Loan Certification;
Use of Proceeds. Each of Maker and Payee intend to treat the Loan as an employee-relocation loan under the provisions of Temporary Treasury Regulation 1.7872-5T, which exempts qualified loans from rules otherwise applicable to interest-free
loans. In accordance with the regulation, Maker hereby certifies that (i) Maker reasonably expects to be entitled to and will itemize deductions on Maker’s federal income tax returns for each year the Loan is outstanding and (ii) the proceeds
of this Loan will be used by Maker solely to purchase the Residence. The Loan shall be non-interest bearing except to the extent set forth in Section 7 hereof. 
  

Section 3. Principal. Maker shall repay the principal of the Loan on the earliest to occur of (i) Termination of Employment, (ii) the sale or
other transfer of Maker’ s Residence or if the Residence ceases to be Jeffrey R. Herold’s principal residence or (iii) January 31, 2015 (in each case the “Maturity Date”). Notwithstanding the foregoing, if Jeffery R.
Herold is an employee in good standing with Payee on December 31, 2005, and thereafter on each subsequent anniversary thereof until December 31, 2014, then in such event and on each such annual anniversary, as applicable, Payee shall reduce and
forgive the principal amount by Fifty Thousand Dollars ($50,000). In the event of Maker’s Termination of 

  

 
Employment, the amount of principal reduced and forgiven shall in all events be prorated based on the actual date of Maker’s Termination of Employment
over the ten (10) year period of time from the date first set forth above. In the event prior to the Maturity Date of (i) the death of Jeffrey R. Herold or (ii) the occurrence of a Brickman Change of Control, the entire principal amount and any
other amounts due under this Promissory Note as of the date of such event shall be forgiven and this Loan shall be deemed paid in full. Maker acknowledges and agrees that Payee does not and will not indemnify Maker and will not gross-up any payments
to Maker for any increase in Maker’s income or other tax liability attributable to any forgiveness of principal made pursuant to this Promissory Note. Maker (or in the case of the death of Maker their heirs, executors, administrators,
testamentary trustees or legatees) will timely supply Payee with funds, or allow the Payee to withhold funds otherwise payable to Maker, in order to permit the Payee to remit all income, social security and other applicable taxes required to be paid
on Jeffrey R. Herold’s behalf with respect to the compensation arising from any reduction or forgiveness of principal hereunder. 
  
 Section 4. Prepayment. Upon prior written notice to Payee, Maker may prepay the principal of the Loan in whole or in part without premium or
penalty. 
  
 Section 5. Mortgage. This Loan is secured by a
Deed of Trust executed by Maker, as grantor, in favor of Payee bearing even date herewith, and encumbering the Residence (the “Mortgage”). 
  
 Section 6. Representations and Warranties. This Promissory Note has been duly executed and delivered by each of Maker and Payee, and this
Promissory Note constitutes the legal, valid and binding obligations of each of Maker and Payee, enforceable in accordance with its terms. 
  
 Section 7. Default Rate. Upon the occurrence of an Event of Default, immediately and without notice interest shall accrue at a rate of ten percent
(10%) per annum (the “Default Rate”) until the Event of Default has been cured, or in the event the principal of the Loan has been accelerated, until this Loan is paid in full. Interest at the Default Rate shall be collectible as
part of any judgment hereunder and shall be secured by the Residence. Default Rate interest shall accrue daily and be calculated on the basis of a 365-day year for the actual number of days elapsed from the occurrence of the Event of Default.

  
 Section 8. Remedies. Upon the occurrence of any Event
of Default hereunder, the entire unpaid principal balance of the Loan, together with all accrued and unpaid interest thereon and all other sums owing hereunder, shall, at the option of the Payee, become immediately due and payable, without
presentation, demand or further action of any kind, and Payee may forthwith exercise, singly, concurrently, successively or otherwise, any and all rights and remedies available to Payee, including such rights and remedies available to Payee
hereunder, under the Mortgage, at law or in equity. The failure of the holder hereof to accelerate the outstanding principal balance of the Loan upon the occurrence of an Event of Default hereunder shall not constitute a waiver of such default or of
the right to accelerate the Loan at any time thereafter so long as the Event of Default remains uncured. 
  

 Section 9. Waivers by Maker, Right of Setoff, Cumulative Remedies, Etc. 
  
 (a) Each of Maker and Payee hereby waives its right to trial
by jury in connection with the enforcement of this Promissory Note in any legal proceedings arising hereunder or thereunder. 
  
 (b) Maker of this obligation waives presentment, demand, protest and notice of nonpayment. The granting, without notice, of any extension
of time for the payment of any sum due under this Promissory Note or for the performance of any covenant, condition or agreement hereof or thereof, or the taking or release of other or additional security shall in no way release or discharge the
liability of Maker. 
  
 (c) Payee shall have a
right of set-off against and a lien upon and a security interest in any indebtedness or obligation owing from the Payee to the Maker. The Payee shall be deemed to have exercised such right of set-off immediately upon the occurrence of any Event of
Default hereunder even though such set-off is entered on the Payee’s books subsequent thereto. 
  
 (d) The obligations of the Maker under this Promissory Note shall be absolute and shall not be subject to any counterclaim, set-off,
deduction or defense. 
  
 (e) No right or remedy
conferred upon or reserved to Payee hereunder or with respect to any collateral securing the Loan, now or hereafter existing at law or in equity or by statute or other legislative enactment, is intended to be exclusive of any other right or remedy,
and each and every such right and remedy shall be cumulative and concurrent, and shall be in addition to every other such right and remedy, and may be pursued singly, concurrently, successively or otherwise, at the sole discretion of Payee, and
shall not be exhausted by any one exercise thereof but may be exercised as often as occasion therefor shall occur. 
  
 Section 10. Costs and Expenses. Maker shall pay on demand the reasonable fees and expenses of Payee’s counsel in the enforcement of the Loan.
Maker shall also pay on demand all other out-of-pocket costs reasonably incurred by Payee in connection with proceedings to recover any sums due hereunder. Any such amounts not paid promptly on demand shall be added to the outstanding principal
balance of this Promissory Note, shall bear interest at the Default Rate from the date of such demand until paid in full and shall be secured by the Collateral. Nothing contained in this Section 10 shall limit or impair the obligation of Maker to
pay any and all costs and expenses for which Maker is otherwise liable under any document evidencing or securing the Loan and all costs and expenses provided by law. 
  
 Section 11. Interest Limitations: Severability. 
  
 (a) Nothing herein contained nor any transaction related hereto shall be construed or shall operate either
presently or prospectively to require Maker to pay interest at a rate greater than is now lawful in such case to contract for, but shall require payment of interest only to the extent of such lawful rate. Any interest paid in excess of the lawful
rate shall be 

  

 
refunded to Maker. Any such refund shall not cure or waive any default by Maker hereunder. Maker agrees, however, that in determining whether or not any
interest payable hereunder exceeds the highest rate permitted by law, any non-principal payment (except payments specifically stated herein to be “interest”) shall be deemed, to the extent permitted by law, to be an expense, fee, premium
or penalty rather than interest. 
  
 (b) In the
event that for any reason one or more of the provisions of this Promissory Note or their application to any person or circumstance shall be held to be invalid, illegal or unenforceable in any respect or to any extent, such provisions shall, to such
extent, be held for naught as though not herein contained but shall nevertheless remain valid, legal and enforceable in all such other respects and to such extent as may be permissible. In addition, any such invalidity, illegality or
unenforceability shall not affect any other provisions of this Promissory Note, but this Promissory Note shall be construed as if such invalid, illegal or unenforceable provisions had never been contained herein. 
  
 Section 12. Successors and Assigns. This Promissory Note inures to the
benefit of Payee, its successors and assigns, and is binding upon Maker, and the words “Payee” and “Maker” whenever used herein shall be deemed and construed to include such respective successors and assigns. This Promissory Note
is not assignable by Maker or assumable from Maker. 
  
 Section
13. Captions. The captions or headings of the sections in this Promissory Note are for convenience only and shall not control or affect the meaning or construction of any of the terms or provisions of this Promissory Note. 
  
 Section 14. Governing Law: Amendment. This Promissory Note shall be
governed by and construed in accordance with the laws of the State of Maryland. This Promissory Note may only be amended by an instrument in writing signed by both Maker and Payee. 
  

 IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has duly executed this Promissory Note
the date and year first above written. 
  

	
	
	/s/    JEFFREY R. HEROLD        
	Jeffrey R. Herold

  

	
	
	/s/    CATHERINE HEROLD        
	Catherine Herold

  

			
		
	Address:	 	 2602 Triadelphia Lake Road

	 	 	 Brookville, MD 20833

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