HomeMy WebLinkAbout97-04699
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4. Defendants, Raymond C. Grandon, Jr, and Nancy K, Grandon,
are adult individuals whose last known current address is 130
Cumberland Road, Lemoyne, Cumberland County, Pennsylvania 17043,
5, On or about February 23, 1995, Geebees, Ltd" a
Pennsylvania corporation and Geebees, Ltd., a partnership of John
C. Baker, James E. Blacksmith, and Raymond C, Grandon, Jr., a/k/a
Geebees, did enter into a certain Mortgage Note/Mortgage with
Plaintiff, Fulton Bank, and delivered same to Fulton Bank for the
valuable consideration recited therein of Two Hundred Fifty
Thousand ($250,000,00) Dollars in which said Ge~bees, Ltd, and John
C. Baker, James E. Blacksmith, and Raymond C. Grandon, Jr., did
promise to pay to the order of Fulton Bank the sum of Two Hundred
Fifty Thousand ($250,000.00) Dollars with interest at one and one-
quarter (1.1/4%) percent above the prime rate Fulton Bank charges
from time to time. Said Mortgage Note furthermore provided that
the full obligation was to be paid in equal monthly installments of
not less than Two Thousand Five Hundred Thirty-Eight and 07/100
($2,538.07) Dollars until the full amount will be paid in full
which shall not be in excess of twenty (20) years from the first
payment date. A true and correct copy of said Mortgage Note is
attached hereto, marked Exhibit "A" and made a part hereof by
reference thereto.
2
6. In consideration for entry into said Mortgage Note and
Loan by Fulton Bank, said individual Defendants herein named did
enter into and provide to Fulton Bank guarantees of liabilities of
Geebees, Ltd, a Pennsylvania corporation, and Geebees, Ltd, a
partnership, also known as Geebees, in the amount of Two Hundred
Fifty Thousand ($250,000,00) plus interest accrued thereon, True
and correct copies of the written Guarantees of all the Defendants
are attached hereto, collectively marked Exhibit "s" and made a part
hereof by reference thereto.
7. The said Defendants did fail and refused to make the
payment due on March 23, 1997, and have refused to make any further
payments since that date, rendering the obligation in default on or
about April 9, 1997, It is noted that a payment was received on or
about June 6, 1997 in the amount of $1,000.00, but such was
credited to a partial payment for March, 1997, which, as stated,
was not fully paid, nor have any subsequent payments been made as
required.
8, The balance on said obligation is as follows:
Principal
$237,009.47
Interest through
July 9, 1997
6,861.01
Late charges
TOTAL:
2.681. 80
$246,552.28
3
It is further noted that interest is acrruing after July 9, 1997,
at a rate of $64,19 per day,
9, Plaintiff, Fulton Bank, has repeatedly demanded payment
of the aforesaid obligation from Defendants but said Defendants
have failed or refused to cure said default or pay any further sum
or portions thereof.
10. Demands for full payment were given to said Defendants on
June 21, 1996, December 18, 1996, January 13, 1997 and July 9,
1997, although Fulton Bank was not required to do so by the terms
of the Note.
11. By virtue of the terms of the Mortgage Note and Guaranty
Agreements, all the obligations are due and demand for payment is
made therefor.
12. The total amount therefor presently due Fulton Bank on
all of said obligations presently stands, with interest computed
through July 9, 1997, at $246,552.28.
13. Judgment has not been heretofore entered on the Guaranty
Agreements in this or any other jurisdiction.
14. The obligations hereinbefore identified were all obtained
for Defendants for exclusively business purposes.
15. None of the Defendants were members of the Armed Forces
of the United States or its allies,
16. Demand is also made for reasonable attorney's fees of
$2,500.00 as provided in the Mortgage document.
4
EXHIBIT A
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III
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$250,000,00
MORTGAGIl NOll'S
I/4rritkrl'
I
~Jru/
, Pennsylvania
p?:J , 1995
For value received, each of the Undersigned, jointly and
severally if more than one, promises to pay to the order of
FULTON BANK, A Pennsylvania Corporation, having its Principal
Off ice in Lancaster, Pennsylvania, hereinafter called the Bank, the
sum of Two Hundred Fifty Thousand and 00/100 ($250,000,00) Dollars
and interest from date as follows:
(1) Beginning one month from date, monthly payment of Two Thousand
Five Hundred Thirty-eight and 07/100 ($2,538,07) Dollars, bein~ in
part interest at the annual rate of one and one-quarter (1-1/4')
percent over the FULTON BANK PRIME RATE as hereunder defined, and
in part a repayment of principal, Interest rate used for
determining the monthly installment was 10.75', Fulton Bank Prime
Rate on the date hereof is 9.00'.
(2) FULTON BANK PRIME RATE, as used herein, means the rate
regularly and from time to time established by the Bank as its
prime rate, and so designated, whecher or not the Bank shall at
times lend at lower rates to specific borrowers. Changes in the
FULTON BANK PRIME RATE tor purposes of increasing and decreasing
the interest rate hereunder from time to time shall be effective on
the effective date{s) established from time to time in the future
by Bank for purposes of changes in Bank respective prime rate.
(3) All payments shall be applied first to accrued interest at the
aforesaid rate and then to the reduction of principal.
(4) Any unpaid principal and interest to be paid 20 years from the
applicable date provided in (1) above for commencement of monthly
payment of principal and interest.
(5) In the event that any of the aforesaid payments of principal
and interest shall become OVERDUE FOR A PERIOD IN EXCBSS OF FIFTBBN
(15) DAYS, the Undersigned shall pay to the Bank a 'late charge' of
FIVE CENTS ($,OS) for each dollar so overdue,
(6) The Undersigned may prepay the whole or any part of the
principal at any time and from time to time without penalty and
without the payment of unearned interest; provided, however, that
no prepayment shall affect the obligation to continue to pay
monthly installments required hereunder until the entire
indebtedness has been paid.
(7) Any sums due hereunder after the stated or accelerated
maturity date shall continue to bear interest at the rate specified
herein until such sums are paid in full.
(8) FULTON BANK PRIME RATE and consequently the amount of interest
paid by tll.:: Maker will vary from time tq time, the amount of each
installment applied to principal will vary from time to time since
installments are to be applied first to interest and then to
principal and thus could lengthen or shorten the intended 20 year
payout of the loan unless the installments are adjusted.
Therefore, Bank may, at the beginning of each calendar month,
decrease or increase the monthly installment of principal and
interest (required to be paid by Maker hereunder) to an amount
estimated by Bank as sufficient to pay the amount of the principal
then remaining unpaid, with interest, by equal successive monthly
installments within the then remaining portion of the projected 20
year payout of the loan. The Undersigned shall not commence
decreased or increased monthly installments until notification in
writing is given to Undersigned by Bank.
"
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exhibit B
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FULTON HANK
GlJAltANTY (ALL UAIIIIJ'I'mS)
'l1,c l),,,Jenlgncll, inl~I\~.liruL~" hc lCll.. UII.Y h"unll hcrchv., ijn.II" PlII'hle"'li'''l "f dlc c.rcllh \'C.f' fl"r",C c"."t'. 'i.r~nlly "f. hg,li. 'W1~r~. ~W~ll II ~'/k/ll
FUltllll Bunk ("Bul1k") tulJL'J.':nl"~~l ../rp., H .PC'nnbYlyn01Jl c~)rp()l:utl~m nn< .~(.~~"l{J?__ <( .}.~_a~l. n._~._-'tll 5
("Burruwcr"), hus cl\lc:rcd lllhllhis Ouurunty ~lIllllJank hus agreed It) muke uw'uiluhlc or 1I1L1inlnin lIudll.:rct.Jh rur Borrow~r 111 relJulu:e on 11 5
OUlIrulIly.
I. UEFINITIONS- As herein the lilll~)wi/lK terms lihull hu\'c Ihe rlll'unil1gs Ihut filllllw'
'Ille Icrlllb "lhlrruwcr's LiuhilitlCIl" tiC "l.lUlJilltlCb" /lIl'llll und tdce III 1111 cklMlng 11,111 rUlure indchlcdncM und nlher liubU/llc5
~)U(o\IUIIIJjl1l'o III Hunk frum lhllTllwcr, whcther lIhbUlulC or l.:OlllingCI\I, dire":l ur huHrc":I, jutnl, 51.'\ICrllll)( independent, held tlr 10 be
held by llonk rllr il~ own 1I1.:I.:OUIlI ill U~ lIgCllt rllr Ulllllhcr IIr 1)lhCIII, hllll cvclllr Ul.:llLJlrctI by WilY lIe a.ulgnlllcnl.
"Ctlllulcrul" f1Il'L1I1S ul1 rcul "lid pcrblllllll propeny, tanglblc Ulll! J/ltllllgltJlc, Ill' l."Very dCbe,:rlplion, ollcl (urth un uny aepnralcly CXCLlJlCU
l1l\JrI~llgCS IIr Illh...r 1II.''''lIril)' ugr...cm...nl!l Ilr Ihll.:UIlICllls gfllllling III Bunk II IIc...urity inlcrcbt III bCllJrC Ihia (}ulIrnnly Ipcct(h:ully or
IlIlhililicb of Ihe lI/1tl"'lsi~llcll gl'/\I.'rully, ~lIld ull I'rujll'fly 01' IIn)' Iluturc whnt.~lll.'Ver of the lJl1llcnlgned now llr hercafler In Ihe
Ihl!l~e!l.~llln III ur UII!llgllcd or hyIHllhl....iltl.tI \11 Itlnh ror llllY pllrpo~e, IIlHI nny huhllll"e Illllhure hclul1g1l1K tu Ihe Undcraigncd 1)( uny
Ilt-pmll, ugCfll.)' or IIlher 11l:",IIU/lIs wilh Hunk 1I1hlIJlher 1I11l1)unls whiL'h nlilY he tJwlng (rllm lime II) time by Honk II') Ihe UnderaJV1cd,
Wllhl)ut limillng Ihc g....nerulh)' of the rurcglling, the C"lllllcral Indudcs the rulluwinK:
NONE
2, CONTINUING SURETY Olll.lGATION . The Undersignell docs hereby unconllllionaJly guaranlee, and become aurely 10 Bank ror
the rull und prompt 1)(l)'I1ICllt whel' (fue, whether by oCi;'CICrOllon or othcrwiscl and 1111111 timel thcrcoftea'l o( 011 the L1l1biUticl. This Guaranty (,
II I.'l)nlinuing olle 11l1c.1 <shllll he cffcl:'tivc and hllldhlK lm the LJnderalgllcd rcgllrdlc5I or how Inng before or oOcr Ihe dOle hcreo( or on)' or
Ihllrl\WCr'li Uuhililics wcre or IIrc in...urred. Nutwitlllillll\ding Ihe foregoing, anyone or the lJndc16fgncd mny ul any time nOlleas than 365 day'
frllm cx....c.:uliull nr Ihia C)unrllllly, give wl'itten "nlke It) (Junk of bUi;'h Undcr6igncd'l in lent ion to Icrmlnlllc proapc1.1ivcly thclr aurcly obllgllllon
Illr Bllll'OWCI','i LiuluJitics pursuallt II) Ihis OUlIllIIHY. Any ntllkc 51) given shull he errc(livc whh rCl'ipCL11O Unrrower's Llllbllhicl inl.lJrrcd aner
rCl.:l!ipl by Ilank lIt' Ihc Wrlllel1 /lo(kc, bUI siBIl! not he crfc"'livc with resped to, nur tcrll1illLltc the Undcnlgncd's Iiuhllit)' (or, Liabilities which
arc rCllcwul.'i, eXlensions lIr I)lodifl...atlons of cxhting Lii.lhllitics or Liabilitics as lu which Bank is then hound by agreement or commitment 10
Ihl.'rl;llnCr exlent!
Thc Undcr~i~ned guaraJllce~ that Ill! paYIllCtll~ lllld re...ovcries of ...ollatcrul (induding, hut f\1J( limired Ill, Ihe Collatcral) applied by Dunk 10
I he I.ial)lllllcs will, when madc, Ilr when M) 111'1)lll'd, he filial and IIllt rC(lIvemhlc in uny imulvclH.Y ur bunkrupll.Y pnlcccetlng; and agrees lhut if
ILny allltlunt appll....L1 tn Ihc l.iahilitlcs is rC"'llvercd from, or repaid hy, Bunk 11\ whole or in parI in lIny bllnkrupt~)', inso!vcl1(')' or similar
prlll.:ecdlllg ill~IItut""ll hy or a~airl.~t !1orrllwcr, Ihe nhll~alion elf the Ulldersigned shall ~lll1ljllue tll he fully u(lplicuhlc to Ihe amount 50 rcpaid or
r.......II...cn..I) tll Ill.... same extent as Ihough Ihe ul1l11unl rl~l'tlvcred or repllltl hut! nl.'\'er been upplied with rcl'lpcl."t to the Liabilities. The
LJlldl.'r~l!!llctl hl.'rdlY granls In Hank authorilY 10 l1lalntlllfl of recIlrd, and ttJ fc...()rd, dlH.:Uflll'J\IS nCI:cs5ary 10 pcrfe~"t elr tn continue Bunk's
perfc...letl illlere~1 ill the ClIllalcral until sudltlme as Bunk is lIatisricd in its stllc disaetion Ihill it nolllnger has cxposure to disgorgcmenl. 1l1C
righl of Ballk tll ...olll;I1Ue its perfet:ted intcrest in the Cullatcral is fllr Its SlltC henefil, and the Undersigned shall not be relieved o( personal
liahllity for lhlrrl\WCr's l.iahlllllcs het:ause Bank dCl'ts 1Il1lll1l.untinuc an inleresl inlhe Cnlhnerul.
.t ")\IOI1NT OF I.I"BIl.IT\'. Thc lLlllUlInl of Ihe LJnder~ignctl's liabilily herelJnt.ler 511ull he Iimiled 10 the mwcimum principal sum
IIf S 250,00<.1.00 _' plu~ Illlcre!ltu...aucd thereon, If no inscrtion has heen made in the preccding space, Ihe umount or
the lh\lJcnignetJ's l.iuhlllty hercundcr shilll he UNI.IMITED. H the llmount of Ihe Undersigned's liabillly hereunder is herein limited, Ihe
Under!ligncd agrccs I hat Ihe lImount of Borrllwer'!l l.labilitlcs may frol1l limc In lime cxt:cet! the limit lJf the Undersigned's liability hereunder
wilhuut in any way affct:ting or dUlllnishing the olJliglllloll ~lf Ihe Under.~igned
4, UNCONI>ITIONAL 1.IAIUIJT\' ~ The liuhility of Ihe UndersIgned hereundel' is lIh~olute and unconditional and shall not be affected
in uny way by rcnsol1 uf (a) an} failure (0 relain or prcserve, or the hl...k of prior enforccment Ilr, !lny judgmenl or other rights ugninst any
person or persons (indudlllg Borro',..,er and ilny lIlhcr sur....ly Ilr guaranI or) ur in any propcny, (h) thc invalidity or unavailability nr any sllt:h
Judglllcnl or uther rights whkh llla)' he Ullel1lpled tu he obtllincd, (t:) any dday in cn(ordng Ilr railure to enfor~c any suc;h rights ~....en if suc;h
rights ure thcrehy 10'1, IIr (II) any lIl'lay III making dcmand on the.: Undersign....d for perforlllilnl.:e ur paymcnt nf the Undersigned's obligations
hereunde.:r.
S. WAIVERS. The Undersigncd herehy wllives I.Ili IWlkes of any character whalsoever with re.:spect to this Guuranty Bnd Liabiljlie$ to Bank,
indudlng hut IIIH hcing limited to l111tke: of the IIl.:ceptal\ce hereof and reliance hereon, of Ihe prcsent exislence of fUlure incurring o( ony of
the Borrower's Liahililies to Bank, tlf the amoullt, tcrms allo t:oluHtlons thereof, lInd of any deraults thereon, The Undersigned hereby
...nnsclHs tothe caklllg Ill', or ruilure hi lake from lime hI tlmc withouI nUlke 10 the Undersigncd, IIny action of Bny nBlure whau()(.."Vcr with
respc"'L 10 Ihe Borrowcr's l.iahlliltes II) Bunk and with resped 10 any rights Ilgalll5t any (lcr5on or pcrsons (including Borrower or any o( the
LJlllh:rsignetl) or in any propcrlY, including bUI not heing limited tn any renewals, extcnshllls, nHldifications, pllslponemcnts, compromises,
IlHJulgcllt:es, walv....rs, :o.urrcllders, exd1Ung....s, and relcllses, and the UIl(lersigncd will remain fully Iiohle hereon notwilhsuII\ding any of Ihe
foregoing; prllvi<lcd, however, Ihalthc glillltlng of II rckase of the liability hereunder or Icss Ihan all of Ihe Undersigned shall be effective with
re,')pcL'l 10 thc liahility h....rclllH!er Ill' Ihe nile or more wI\!) are.: slH:dfkally relcascd, l'Jul shall in no way affect the liability hereunder or ilny of
Ih.... LJnder.~igtled 1101 spel'ifiL'i1l1y rdcas.:d. The (lealh or illl.:apadty of [lilY of the UIHlersigncd shall in no way afrcct Ihe liabilily hercunder of
any tllher of Ihc Un<lersigllcll The tJntlL~rsi~llcd h....r....hy waives the.: hendit of ali' laws /lllW or her....aftcr in crfect in IIny wuy limiting or
rc~trj(lIllg Ihe Imhllity of IIIl' l1n<lL"rsigned hcrcunder, including, without Iimilatillll, '(i) all dc.:fenscs whal.\IlI.'Ver 10 thc Undcr5lgncd's liabilily
hereunder, CXCCPI the dcrc"~c <If pl1ymenu madc on ut:t:ounl of Borruwer's l.illhilities tn Bunk llnd Ihe Undersigned's Iinbility hereundcr and
(ii) Ill! righll" SillY oj' cxct:ulion unu exemption of property in lIny aClinn to enrorce Ihe liability of Ihe Undersignt'.d hereunder.
ft. I'A VMJt:NT OF COSTS u In lIddition It) uti uther liahilily of the Undcrsigncd hereunder and notwithslanding the limit, ir any, set fl)rth in
pllrll~raph .~ hereof, Ihe.: lJllller~iglled alslI ug".'c.~ 10 PilY Balik oil demllnd all t:O.~ts and eXflcllsc~ (lndudin~ rcasonable attornc..'Y$' rees Lind legal
C)lpc.:ll.~c'\) wlud\ milY lie IJ1l'urr~11 in the.: enfllr...cl1lclItul'the IItlrrtlwt.!r'.~ Llahilities Ilr the liahilily of the Undersigncd Ilc.'.reundcr.
7, r\l'l'EI.EK/\TION ()Ii 1.I,\IUI,ITIt:S.. It any Ill' Ilorrllwer'.~ Uahllllic.'i 10 Blink life /lot pU1l1 whcll due or ir there Ilct:urs iI default fH
Cvl.'tll of t1c1ault undcr ilWCL'lIlCnh pe.:r111tlllllg III any Ill' Burrllwe.:r's 1.1:lIIIIIIIC.'), all Bllrrllwcr's 1.1lIhililic.'i In Bank shall lit Bank's option .lIld
WllhlJUI pnor t111II...e In Ihe lJntlcl~tj!,tletl he dl'cmc" tn he fonhwllh du.... ilnd payahlL" fllr purflll.\c!i of Ihis Ciuarallty and Ihe liuhility or Ihe
lJIHlcuiglll't! hl'rclllldcr ^, lll'lwl'cll the lJtldcr~I!o\f\c,1 alltl Ilank, 11lL' l.lilhillltes fllr Whldl Ihe lJrrdcr~iKned i.'i lHlrely hercundcr may hc
Ikdarl'llllI he tllle and payable for pllrpflllcs Ill' tlll.\ (;uarilllty IIfllwJlhsllllHllng any May, injullt:lIl1n or lIth....r prohlhition whh.:h lllUY pfl."Velll,
dclay nr tlltltilre itllY ,~tllh lkdar;lllllll a.~ a~atml Borrower
K, 1).:10',\111:1'.. Thl.'re ~llilll mllH II "'kraul!" IInder 11m (jll:lranty If 1I111 lJi\llerSI~nell falls In pay when duc uny IImnurH owing hereunder t)(
LlIl~ 10 d.. IIr perlorlll allY <1I t'~ llhlt,V,alttltl.~ undcr uny tloLtllllL'nlS pcrtlllnlng tll the ('lIllaleral If Ilcfllul! IH:l"UU, Uunk nlny c::ccrd,e ill righlnf
\1.'1011 alltllllil) l'H'I(I~C .In.,.. 1l,V,hh ilIlIIIClllelhe.~ i1galll.~1 Ihe IJl1der~tKnetlllr Ihe Cullal....ralll~ may he lll;llllahlc hercul\ller, un(ll: 'c~lJrily IIncl
nllll.'r lnllall'r;L1 110(111111.'111' pnl;tl1ll11~ III Ifll' ('nlllllelitl, lInder the Untfofm ('lIllllllcr...lal CmJL", IIr olhcrwt.~e. Thc term" of the security IInd
'II her lllll;llcr;t1I"'lllllll't\I~ IlIl' tlll'llrlllllilll'll hcn:tllllY rc!l'rl'nn:. 'rhe remedic!i !'oct rorth In lhu!lc other dunllllcnt^ I\hllll be in lId<liliun In nth/lr
.l'II\ClhL:~ 'II the It.lnk Ih'lt'Hllder .....llh r~'~ll"'ll III the lllddllc{ltlcs~ III Ih\.' lJllIlcl'sig/ll..'41, II1duclinK, wlthuUI Iimirution, Ihe I'iKhl Ie) c;n"Jc:~.'i
lllllw.ment "~"lll\llhc I Jl1t1l'r~I~lll'tl ,II OIny ttlll"', wlll'lln:r or tlnl ,I I Iclall1t ha~ ll.....'lIrretl
FULTON flANK
GUAI(AN'IY (ALL UAIIIIJTIES)
Till.' Ulltlcrbl~nl.'d, illll.!lhll/l~ lu he Ic~ully hound hcrchYllIJhl ill (1)1.\~ilh:mlilllll)r the ..:redlt hCrclIJrl)rc Cnnl1Jrrently Of hercuOer extended by
""I"", ll"nk ("llllnk") lu t;EI, IIF),"; r:l1J.. Ii l'l>nllsy] vllni il COllXlrlitlon mlLl Gccl.x.>C.8,Ltd- ._a.partnersh.i!:+.lILIILa
("lh'I'wwcr"), IHJIi Clllcrcllllllu 111I~ OUlIflllHY 11Ihl lIullk IHI~ ugrccll hI lIlukc llVlItluhlc Ilr Illllllllllin Ilu..:h acdh rtlf Bllrrower III rt.!lJllnce on .l~~LX"QS
(iulIrulll)'.
1. nEIo'INITI()NS~ AIi hcr..:inlhc flllltlwillg 11..'(11I.\ !'lhall hu\'c the IIIcalllllg~ 11\111 fullow
'n\C terms "Hurrllwcr'/'i UuhHiticta" ur "J.juhililjc~" II\CUIl uul! rder It) 11.11 c.I\hling uno (uture IntJclHcdncM Dnd other liabilities
tlUl!llnnding hi Blink from Ilorruwer, whether llhllUlulC II( L'lIllllngcnl, dirct.:t ,)f lndircc.t, Jlliltl, 61.'Vcrulllr iJldcpend~nl, held IIr II) he
held hy Bank for II!', I)WI\ ll~nHlllt tlr liS ug~llt fllr alllllhl.'r or others, untll....en if 1I(llulrcd by WilY uf n,ulgllHlenl.
"CLlllulerul" l1le,ln~ i111 relllul1d Jlerl'illllilll'rIIJll..'ny, IlIlIgihle Ulhlll\llIngilJle, 1)1' evcry delil:riptiun, U~ ,set fUrlh ll/111n)' ICpl1rBtc:ly t."Xel.1JtetJ
IIltlrl~lIgeli tlr Illhcr hC(UIHy i1grel..'l1ll..'lllS IIr dlll:Ullll..'lIlli grlJlllillg II) lIll/lk u lil..'(urity interc/a tll liet.:ure this Ouaranty spcdfl&.:ully ur
llullllUIl,.'li III Ihl,.' LJnl!erlilglll.ll! gellerull)'; 111111 ull propert)' Ill' uny nulure Whllllillcvcr of thc Ulldenl~lll:d /lOW IIf hcrcl1f1cr In Ihe
pt1~,~I.'~~iol\ Ill' IIr .I,~!'Iigtll..'l! ill' hYlhllhcl.',lled III Bank fill' ;11\)' purptlse, II/Hlull)' IHllan(e ur lihure hehll1glng 10 the Undenlgned of ol\Y
Ilcpusil, ugcllL)' llr IHhcr UI.:L'IlUlltli with Bunk find other Ul1lllUIHli whiLh I1HIY he owing fmm time to time by Bank 10 Ihe UndersILQu:d.
Withuut limiting the w:neruht)' Ill' the ftlregl)ing, Ihe Cullaterul indudca Ihe fl)!luwing:
NONE
2, CONTINUtNG SURETY OULlGATION - 11\e Undersigned doc, hmby uncondllluno/ly guaran.ee. ond become '"rely '0 Bonk lor
the full und prompt puymcnl when due, whether hy Bc&.:cleratiol\ or otherwise, Dnd lit all times thereafter, Ilf 1111 the lIobUJlles. This Guaranty hs
a (tllHinuing one and 5hull he crrc&.:live IInd hinding (H\ the Undersigned rcgardless of ht)w long before or after the dUll' hereof of (lny or
llll/'rower's l.iahlliticli were Ill' arc il1(urrct!, Notwilh~llIlIdillg Ihe ruregtling, uny one of the Undersigned may al uny lime nOII<<:5.5 Ihon 365 daya
ITtII1l e)(e~ulion Ill' lhis Ouanl/H)', give wrillcl\ nUlke hi Bank llf sud\ UntJenigncd's irHentillll 10 lerminutc prU5pcc.:llvcly their surclY ohllgulfon
hlr lIllrrower'li Llahilities pUfliulInt hi this liuurunty, Any IHuke so given shull hi: cfrc~tivc with resfle'l It) norrower's liabilities incurred ofter
rel,'cipt hy llank Ill' the wriucn IltllkL:, hut shalllhll he dfcL:tive with respcc.:llo, 11M lermil\i1IC the LJndcnigned'li liability (or, Lillhililics whh:h
il/'l: rencwuls, eXlcn~iuns or modifications uf existlllg Lillhiljlies or Liabilities liS 10 wludl Bank is then bound by agreement or commitment to
thr.:reilher exlelHl.
Thc Ul1d..'r~ignetl guaranll.'eS thaI all paymellts and rel;tlvl:rks of 1,'Illlaleral (induding, hut nllt limited III, Ihe Collateral) applied by Bunk tt)
[he 1,lilhllitic,'\ will, whl..'n matlt:, or when \0 aplllicd, hc final and not re(t)vcrahle in any insolvel\~~ or hunkrupll)' prucecdingi and IIgrees that if
1I1lY ,illlllUI\l applied [ll the Liabilities is rc(ovcrc,l fmlll, or repaid hy, [hillk in wholc or in pari in any bunkruptL)'. insolvency or simihu
prtH:ccding inMituted by or ugailht Borrower, the. obligatioll of [he Ul1dCrSI;!lled shull clllltinuc 10 be fully applicable to the amount &0 repaid or
n:cuvcred tll the sum.... extenl liS thllugh the i.Hllount rewvered ,Jr repaid had IH."Ver hr.:en applied with respect 10 the liabilities. The
Under~igned hereby gra/lls tll UanJ..: lluthority to ll1aintain of ru:ord, and to record, documents necessary 10 perfect or to continue Bank'a
perfccted inte:est in the Collateral until such time as Bank is satisfied in its sole discretion Ihat it no longer has exposure to disgorgement. The
right of Bank to continue Its pcrfl.:'tcd inleresl in the C'lllateral is fllr its sole benefit, and the Undersigned shall not be relieved or personal
liahililY fur llorrowl.~r's Liabilities because Dank clects not to continue an interest in the Collaleral.
J. Al\10UNT OF LIAUILl'fY - The amount or the UnderSigned's Iiahility hereunder shall be limited to the maximum principal sum
of $.250 I 000,.00. __ ,plus interest ac:crued thereon, If nil insertion has been made in Ihe preceding space, the amount of
Ihe Undersigned's Liahility hereunder shall he UNLIMITED, If [he amount of Ihe Undersigned's liability hereunder is herein limited, Ihe
Uflllersigned agrees that the llllltltl/H of Ih)(rowcr's Liabilities may from time to lime exc:ccd the limit of the Undcnigned'sliability hereunder
without in any way affecling or dimillbhing the ohligation of lhe Underliigned.
.t. LJNCONUITIONAI. I.IAIUI.I1Y. Thc liahllity of [he Undersigncd hereunder is absolute and unconditional and shall not be affected
ill any way by rcasun of (a) allY failure to rctuin or presclVe, or the lack of prior enforcemcnl (lr, any judgment or other rights against any
per~t)1l or persons (including Borrower and any nther surelY or guarantor) or in .my property, (h) the invalidity or unavail3bility of any such
jlltlgmcllt or III her rights wllkh may he attelllpted 10 bc obtained, (c) <IllY (Ielay in enforcing llr failure to cnforce any such rights even if such
fights .Ire thercby lo,~t, or (d) any dday in making denland on Ihe Undcrsigned for porforlllan(e O( payment of Ihe Undersigned's obligations
hereunder
5. \\'t\IVERS. The Undersigncd hereby Naivcs alll111tices of ilny char:H:ter whlllsoever wilh respect (0 this Guaranty and Liabilities to Benk,
Including hut not being lil1litf.;:i! 10 notke: or Ihc ac...:eptancc hereof llnd reliance hereon, of the present exislence of future incurring of uny or
Ihe Borrowcr's L.iatJilltie~ 10 Bank, of the amount, terms and (lll1ditions Ihereof, and of UllY defaults thereon, The LJndel'signed hereby
cOllscnts 10 the taking of, or failurc to take frol1l limc to timc without nlllkc to the Undersigncd, any aclion of any nalure whatslll."Vcr with
rc~pcd to Ihe Borrower's Liabilities III Bank and with respect 10 any rights against lIny person or pel.sons (including Uorrower or any or the
Undcrsigned) or in al\Y propeny, induding hut not being limited to any reJ1l'Wills, extensions, modifications, postponements, compromises,
indulge1\ccs, walvcrs, ~urrcnders, exchanges, and releascs, and the Undersigncd will rcmain fully liable hereon notwithstanding any of the
foregoing; provided, however, that the granting or a release or lhe liability hereunder of less than all of the Undersigned shall be effective with
respect III the liahility hereunder or thc one or morc who urc spedfkally released, l')ut shall in no way urfcct Ihe liability hereunder of any of
the Undersigned not speclfif.:ally rekasl:d. The dcath or int.:npacity of any ()f the Undersigned shall in no way affecllhe liability hereunder or
<lilY uther of lhe l"Hlen~ignl.:d The Undersigncd hereby walV~S the henefit of all' laws now or hereafler in effect in any way limiting or
relitricling lhe liability uf the Undersigned hereunder. including, withuut limitation. '(i) all defenses whatsoever to the Undersigned's liability
hereunder, except Ihe defense of payments made on account llf Borrower's Liabilities to Bank and the Undersigned's liability hereunder and
(ii) ul! righllt) :<ttay of exc~uti()n 1I1ld cxel1lption of property in IIny action to enforl:c the liability of the Undersigned hereunder.
6. PAYMENT 010' COSTS --In addition to all othcr liability of the Undersigned hereunder uno notwith~13nding the Iimil, if any, set forth in
paragraph J hereof, the Und('r,iigncd also agrecs tn ray Bank un dcmancl all .'llsts and expenses (including reasonab:e attorneys' fees and legal
cxpenses) which Illay he Incurred III thc cnrorcement Ill' Ihc Borrower's LlillJ\hlll.'s or the liability of the Undersigned hereunder.
7. ACCEL.:RA.l'ION 01<' I.IAIUI.lTIES ,,~ If any of Elorrower's Liablil(ie~ III Bank arc not (laid when due or if there occur! n default llr
evcnt Ill' defaull ulHlcr llgrct:r1lenl\ pertaining tll any of Horrllwer's l.iahilltic.'i, all Borrower'" l.iahilitics to Bank ~hall at Bank's optilm and
wllhout pn11r 1\0(1"':1: tll Ille LJntlcr,'\igrwd Ill: dcemcd 10 hc forthwilh due alltl payahlc ror purposcs or this (juaranty and the liability of the
LJndcrslgnell lll'relJlllkr t\~ hctwecn the Undcr.'\qstlcd and B~Il)k, UIC Liahilltles for which Ihc Unuersigned is surclY hereunder may he
dcdarl..'tl III he tlllC and payahk tor purpuses of tlll.~ (juaranly notwlthstanthng any Slay, IJlJlulClilln or other pruhihltlon whil~h may prL.....cnt,
dd~ly or irllll~l!e any SlIdl tkclMiltlll1l ,IS a~;Jinsl Bnrruwer
K. UEJo',\tII.T-- There shall O(Cllr d "Default" under thl~ {juOlf.lIl1y If the lJndcr~lgned fail." to pay whcn due any amount owing hereunder or
Lllb In 1111 or perftlrl11 Hny Ill' ItS Illlllgatlul1~ undcr illlY (ItKUl1lenU pertlllJ\ing tothc Collateral. If Default tKl.:lJU, nank may cxerdsc iu right of
'\Clnflllnd Jllay e,,<crw,c allY n~ht" and remcdlcs agilinsl Ihc Undersigned or tl~e Collalcral :IS Illay he availahle ,hcreunder, undcr seL"tH!ty and
1>1111'r "'I,llall..'fiJ1 dOl.:\Ill\cnb pe(t;lllIln~ 10 tllc Collateral. undef the Uniform Luftlmcrclill Cude, tlr IltheC'Wlsc. fhe tcrms or the security anti
pI lief \.lllldll..'ral t1nl.:lJtllent.s afC Illl'OfjWfalcd hercln hy referef'll.:c. The relllcdic:\ ,~ct forth inlhosc othcr dOf.:umenls shall be In addition 10 olhcr
rCl\lethe~ of thl.: Blink hen..'undcr wllh rcspect 10 the lfHlehlednc~s of Ihe Undcrsigned, induding, Without Iimitatiun, thc righl to confe5.'\
Judgmcnt agalfl\t tIll; tJnder.~lgned at any timc, whelhcr or nul II Dd.lUlt has o"urrcd.
/
I
HILTON BANK
GUAltANTY (AI.L L1AIIILlTIES)
I-u;~~:~ I~':,~er~;t~~~,') 1~:fj~lYl.!i~~el~!y,"'WII~~fffi~j(y tl(J},WfNnt1~"{i\i\'llni\lb"rf'HVt\P"fi.lll~'if"t.~ff~J~I!',~~~~tMd ~~~ 11
("Ilurruwcr"), hUIi cnh:reLl h1l0 Ihl. (jul.lrunty uno llunk hll~ lI~rccd hi mukc u'Juilahlc I)r n1lllnlllil1lU(h l.:rellJI Cor Dorrower In rc:lhln~c~
(}UUnllIly.
I, IlU'INITlONS. A, herein Ihe rollowlng lerm' .hull hllvelhe IIIcllnlng'lhul r"II..w:
'O'e le,,1IO "lIor",wer', liuhlllllc,' or "l.Iu""I1I<$" m<lIn und rerer 10 ull <xI,llng and rUIure lud.bledne.. and olh.r II.bllill.,
IlutbluntJlng II) HUllk (rl)1II Ul.)rrl)WCr, whetl,,:r uhl'illhHC Ilr l,'tUltlllgcllt, direct or IndlrcL't, Joint, "l."\Icrol ur independenl, held ur to be
held hy Uunk for II. uwn uCl'uunlur us II~CIl( fllr lUlulhcr ur uthcu, ulul L'\'cn if ll":'lulrcd by wuy or u&6linmcnt.
"Cllllullnul" mClIn5 nil rculuI\l1 pCr5llllull'rllpcrty, tangihle und inllll1glhlc,llr L"\'Cry IJclicrlplhm, Bllet runh on ony leparately cxcculcll
rnurtguge5 IIr ulher M.'\."urhy ugrcCI1\~nI5 tlr dm:umCI\IIi grunting lu Bunk 11 bccurhy Intere5t 'u &ecuru thl. OuaronlY Ipccincully or
1lUl)lliltCIII ur Ihe Undenigncll gencrully; UIIl.l 1.111 pruflcrty ul' any nuturc whutMH.....'cr ur Ihe Undcnigned now or hereoncr In the
I'tJ55cuion ur ur ubbigncllllr hypulhcculcd hI Ihmk Illr IIny purpulioC, IInd UllY hululu:e ur allure hclonKlng to the UndcnllPlcd of uny
dellO,lI, ugen.')' ur ulher .<<uunto wilh lIunk und olher u",,,un" whlth muy be owing rromllm. lu lime by D.nk lo Ihe Unde"lgn,d,
Wllh"ulllilllllng Ihe gellerullly of Ihe furegolng, Ihe Collulerul in<lude'lhe r..II"w'ng'
.
.
NONE
2, CONTINUtNG SURETY OBLIGATION. The Undmlgned doe~ herehy un<ondltlon.lly gua,.nle., and b..ama ,u,elY la Dank ra,
Ihe rull .nd prompl puymenl when due, whelher by oceelerallon or olherwl,e, and.t .lIllm.'lh.r..fle" of .lIlh. L1.bUltl..., Th'. Guaronl)' I,
u cunlinulng une und .hull "e erreclive .nd binding on Ih. Unde"lgned regardle.. of how long b.for. or .n.r Ih. d... h.r.or of .ny or
lIurruwer'. 1.I"l>lIl1le, were u, ureln..urred, NolwilhOlundlng Ihe ro,egolng, ony one or Ihe Undmlgned moy.t any lime nOII....lh.n 365 doy'
rroill e,eeull"n ur Ihl, Guurunly, give wrlllen nolice 10 Dank or ,ueh Undenlgned',lnlenllnn 10 I.nnlnale p,o'p.ctlv.l)lthelr ,u,.ty obllgollon
r.lI lIurr"wer', Liubilllle'l'u"UU'"IU Ihl, Gu.runly, Any nOllte '0 given ,hull be err,cllve wilh r"pect 10 Dorrow.", L1abIllU., Incurred ofler
reecipl hy lIunk or Ihe wrlllen nOllte. bul .h.1I nol be errecuve wilh re'peClIO, no, le,mlnule Ih. Unde"lgn.d" 1I0bllity for, L1.bllllle, whlth
ure renewub, cxtenalons Ilr modlri.;utlons of exbling Liabiliticli or L111bilitics 05 to whkh Dunk Is then bound b)' agreement or commitment Il)
lhereaner extcnd.
The Undmlgned guarunle.. Ihul alll'nymen" .nd recoveries or collalerol (Including, bUI not limited 10, Ih. ColI.le,.I) .pplled by Bank 10
thc Liahilities will, whel\ made, or when Ill) applied, be finalalHJ not rccoverable in any Insolvcncy or bBnkruptcy proceeding; Bnd agreellhat Ir
any ,II1H)Urlt upplicd In Ihe Liabilities 15 reC:I)\,ered frum, or repaid by, Bunk In whole or in pari in any blmkruptcy, insolvency or ,lmitar
pru&:et:ding instiluled by or aguinsl Ullrr()WCr, the ubligutil>n of the Undcnlgncd shull cuntinue to be full)' opplicable to the amount 10 repaid or
rc&:owred tt) the samc extent 115 though the amuunt rccovered or repaid had never been applied with respect to the Liabllitics. The
Undersigned herehy grnnt!\ h) nllnk authorily hi maintain or record, BOll 10 rccord, dncumenl5 ncccssBry 10 perfect or '0 conltnue Bank'5
11I.:rfcdcd intcrcli! in Ihe Cllllatcral unlil such timc liS [Junk is slItisricd in Its l50le discrctilm Ihut it no longer has exposure to dl5gorgement. The
right llf Bank tn C:Ol1linue its perfe&:(ed intcrest in the Colloterol Is for i15 sole benefit, and the Undersigned shall nol be relieved of penonal
Ililllllity fur Ihlrruwer's Liubililies be&:lIU5C Bank elects nut to continue an Inlercst In the C()lh.Hcrol.
3, AMOUNT OF UAIIIUTY. The alllounl or lhe Unde"lgned'. lIu'>lIity hereunder .hull he IImlled 10 Ihe m""lmulll princlp.' ,ulll
III'S __4 50 1,000.._ 00 ___... __~__._ . _ "plu:! intere5t lIccrucd Ihereon. Ir no inscrtion has been mode In the preceding space, the amount of
Ihe Undersigned'. Liahilily hereunder ,hull be UNLIMITED, If Ihe .nloul1lof Ihe Undenlgn.d', liability hereunde, is herein limited, Ihe
Undcrsignc:d ugrecs Ihllllhc ul1\ounl of Dorrowerls Liubilitie5 may rrom lim&: to lime exceed the limit ()f the Underslgned'$ liability hereunder
withoul in lIny way urrC:C:ling or dimini5hing the obligation or the Under5igned.
4, llNCONlllTIONAL L1AIlILlTY. The lI.bUlly or Ihe Unde"lgn.d hereunder I. .h.olul' and uncandlllan.1 .nd shall nOI be Mr.ct.d
in any way by rcason of (0) any failure to retain or preserve, or the lack of prior enforcement of, any judgment or other rights against any
pe""n or p",on. (including Borrower and any olher surely or guaranlor) 0' in Bny properly, (b) Ihe Inv.lldlly 0' un.vallablllty of .ny ,uch
judgment or olher righu which muy be attempted (0 be obtained, (c) any delay in enrorcing or failure '0 enrorce an)' such rights even If luch
rights arc IIH~rehy 100tl or (d) any delay in making demand on the Undersigned for performance or payment of the Undersigned's obligations
hereunder.
5, WAIVERS. The Undersigned hereby w.ives ull nollces or any character wha",""''' wllh ,esp.ct 10 Ihis Guoronty .nd L1abllltle'lo B.nk,
induding bUl not being l!ralted 10 notice: of Ihe acceptance hereof Bnd reliance hereon, of the present existence or future incurring of any of
Ihe Borrower's Liabilities to Bank, of the amount, terms and condhlons thereof, and of an)' deraults Ihereol\, The Undcnlgned hereby
~ul1scnt5 to the tllking of, or ruilure (0 tuke from time lu tirnl.'. without notice 10 the Undersigned, any action of on)' nature whatsoever with
rcs[Jl.:&:t hi Ihe Borrower's Liabilitics to Bank Bnd with respc&:t to any rights agtlinst any person or persons (including Borrower or an)' of the
Undersigned) lIr in any property, induding but not being limited to any rcncwtlls, extensions, modifications, postponements, compromises,
indulgl.:l1&:cs, waivers, surrenders, ex&:hangcs, and releuses, IInd the Undersigned will remain fully liable hereon notwithstanding an)' of the
fore~(}ing~ provided, however, Ihat the granting uf u release of tIH.~ liubility hereunder of less than all of the Undersigned Ihall be efrective wilh
n'::ipl..'&:t (II the liahilily hereunder of the one ur more whu lire specifh.:ully relea5ed, but shull in no Wll)' urfect the liability hereunder of any of
the Undersigned nut spedficully releuscd. The dealh or il1~apadty uf any or Ihe Undersigned ~hllllln no Wll)' arfect Ihe liability hereunder or
any othcr of the Undersigned. The Undersigned hereby waives the benefit of 011. laws now or hereafter In crrect In an)' way limiting or
rc.'tri.;ting the Itahility of thc Undersigned hereunder, induding, without limitation, to 1.111 defenses whalsoever to the Undersigned's Iiabillly
hereunder, ex&:epl till': ddt:I\ltc uf paYllIents mude un a,counl vI' B,)rrcwcr':j Liubllitle~ to Dank and Ihe Under!lgned's liability hereunder and
(ii) ill! right 10 SlaY of execution und exemption uf properly in any action to en(orc~ Ihe liability of the Undersigned hereunder.
6. P'\ YMENT 0.... COSTS.. In nddition tu 011 uther Iillhility of the Undersigned hereunder and notwithstanding Ihe Iimll, If any, let ronh in
jli1ragraph.1 herellf, Ihe Un(lersigncd alsu agrees to pay Bank 1)1l demand 1.111 CtllitS and expenscs (including reusonahle attorneys' rees and legal
cxpenses) which may he in,urrcd in the enrorcement of Ihe Bnrrower's Llahililies or the Iiabilily of the Undersigned hereunder.
7, ACCELERATION OF L1AIIILlTIES .. Ir any Olf BorrOlwer'. Liuhilill"IO Bank are nol paid wh.n due or If th.r. occurs a der.ull or
c\'1o:1l1 ur default under i1gn.:emcnts perlaining hi any nf Borrower's liabilities, ..II Borrower's Liabilities to Bank Sh311 at Dank's option and
wlIhnul prlllr 1111II&:C to Ihe LJndcrsigned he deemed 10 be rorthwith tJue IInd payuble fllr purpose.s of this Guaranty and th~~ liability or the
llndl.:r!\lgncd herl.:UIHler As hetween the Undersigned lInd Blink, the Liabilities for whi&:h Ihe Undersigned 15 "urcty hereunder may he
dedarelJ 10 hc dul.: and payuhle ((It purposes of Ihis (ju,uanty notwithslillldillg any Slay, injunction or other prohibition which may prc.'\lent,
delay or inilliltc any !tut.:h declaruljun as against Unrruwcr
K, U":"'AlJL Tn There shall u&:&:ur a "Default" under this (iuilranty if the Undersigned fails tn pay when due any amount owing hereunder or
rllil!\ tn do ur perforn~ uny of i.1S obligations u~der any dOI,.1.lmcnt.s pertaining to the CullutetlJl. If Ocrauh OCf,,"\US, Bonk may exercise ils right or
setuff :Ind may eXc"r&:I.'c any right! ,uHI remedies ilgilinst the Undersigned I)r the Cullalerul us l1lay be Ilvailuble hereunder, under le('Urity and
III her &:Illlateral documents perlllining tn Ihe t\I~lalcral, under the Unifllrm Cnnlmerdal Cude, ur olherwise. The terms or the lecurity Dnd
ulher .;ullaterul dlll,:ulllenu are IIl&:orpomled herell1 by rcfcrel1ce. The remedies set forth in those other documents shall be in addition 10 other
rt:t1\edJc.:~ \If the Bank hereunder with respcd III the indebtedness tlf (he Undersigned, including, wilhoul limitation, the- right to confess
jutlgmcrll ilg;lIlut the UIHlcnllgned at any tlllle, whether or nllt a Ddault has o.;&:urred.