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HomeMy WebLinkAbout01-05560Donald L. Kornfield Attorney £or Plainti££ 17 North Church Street Waynesboro, PA 17268 (717) 762-8222 or 267-3202 EAX 762-6544 don@kornfield. net Atty. I.D. #19242 UNITAS BANK Plaintiff IN THE COURT OF COMMON PLEAS OF THE 9TH JUDICIAL DISTRICT, PA. vs. JAMIE PLASTERER Defendant CUMBERLAND COUNTY BRANCH CIVIL ACTION - LAW CONFESSION OF NDGMENT PURSUANT TO Pa. R.C.P. RULE 2951 (bl Pursuant to the authority contained in the Warrant of Attorney, a copy of which is attached to the complaint filed in this action, I appear for Defendant and confess judgment in favor of the Plaintiff and against Defendant as follows: Principal balance $58,452.13 Interest to 9/19/01 6,624.42 Attorney fees 6.507.65 Total $71,584.20 PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT YOU ARE ADVISED THAT THIS LAW FIRM IS DEEMED TO BE A DEBT COLLECTOR ATTEMPTING TO COLLECT A DEBT. ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. Attorney for Defend Attorney Contained Hereinbefore B'ursuant to Warrant of Complaint Filed UNITAS BANK IN THE COURT OF COMMON PLEAS OF Plaintiff THE 9TH JUDICIAL DISTRICT, PA. vs. COUNTY BRANCH CIVIL ACTION -LAW JAMIE PLASTERER # Defendant COMPLAINT NOW COMES Plaintiff and states: 1. Plaintiff is Unitas Bank, a division of First Commonwealth Bank, a banking institution with offices located at 15 South Main Street, Chambersburg, Franklin County, Pennsylvania. 2. Defendant is Jamie Plasterer, a sui juris adult, living and residing at 36 Kelly Drive, Carlisle, Cumberland County, Pennsylvania. 3. Attached hereto as Exhibit "A" and made a part hereof is a true and correct reproduction of the original Commercial Guaranty of Carlisle Sports Emporium, Inc., executed by Defendant, containing a warrant of attorney. 4. The instant judgment is not being entered by confession against a natural person in connection with a consumer transaction. 5. The guaranty has not been assigned. 6. No judgment has been entered upon the guaranty in any jurisdiction. 7. Defendant is indebted to Plaintiff in the principal sum of $58,452.13, which amount represents the balance due Plaintiff pursuant to the Promissory Note signed by Carlisle Sports Emporium, Inc. dated December 29, 1999, together with interest and attorney's fees. 8. A true and correct copy of the Promissory Note to Plaintiff is attached hereto as Exhibit "B" and made a part hereof. 9. Defendant is indebted to Plaintiff as follows: Principal balance $58,452.13 Interest to 9/19/01 6,624.42 Attorney fees 6 507.65 Total $71,584.20 10. By reason of Defendant's guaranty to Plaintiff in the amount of $75,000.00, all of which appears by reference to the attached instrument, and by reason of Defendant's default, Plaintiff is entitled to judgment against Defendant in the sum of $71,584.20. WHEREFORE, Plaintiff demands judgment against Defendant in the amount of $71,584.20, together with interest from September 20, 2001, at the rate of $12.18 per diem, court costs and such other damages as may be available at law. Donald L. I~ Attorney for I verify that the statements made in this Complaint are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. Section 4904, relating to unsworn falsification to authorities. UNITAS BANK B 1~..._ obert C. Williams President any CARLISLE SPORTS EMPORIUM INC. (TIN )" 251694989) ~ ~ ~, 110} LINDFIAM~CT'STE 704' MECNANICSBURG, PA.17055 .14 Un(tas Bank, a division of First Commonwealth Benk Chambersburg Office 15 Sputh Main SbaM PO Box 777 Chambersburg, PA 17207 (717)287.1776 ' -JAMIE PLASTERER (SSN: 12332.4750) "38-KELLY DRIVE 'CARLISLE, PA 17013 AMOUM, OF GUARANTY. This Is a guaramy of payment of t00.W0%ct Na Note, Inelugmg without Ilmltatlon tae prlnGpal Nole amount of Seven Flue Thousantl & Wfl00 Dollars ($75,000.00). GUARAN'P~'. For gootl and valuable consideration, JAMIE PLASTERER ("Guarantor") absolutely antl unconditionally guarantees and promisee to pay MUry Itea Banlt a division of First Commonwealth Bank ("Lentler") or Ire ortler, in legal tender of the Unitetl States of Amerlce, 100.000% of the Indebtedness (as that term is tlefinatl below) of CARLISLE SPORT'S EMPORIUM INC. (`Borrower") to Lender on the lenns• antl contlKlon9 sat forth In Nis Guaranty. Guarantor agrees that Lender, In Its sole tliscretlon, may determine waieh portion of Boroower'a intlebtetlneas to Lentler Is covered by Guarantor's peroantege guaranty. MAXIMUM LIABILITY. The maximum liability of GUBrentof under Nis Guaranty shall net excaetl at any one time tOD.0o0% d me emouM of the IntleMednesa tleacribadherain, plus ell Costs antl expenses of (A) aniorcemenl d this Guarenry antl (8) collecton and sale of any collaterel securing this Guarenry. ThB above IlmHatlon on liability Is not a reshictlon on the amount of Ne Intlebtetlnass of Borrower to Lentler either in the aggregate or et any one time. If Lender presemty holds one or more guaranies, or heree0er receNea atltlitlonel guarentles from Guerentor, Lender's rights antler all guerentles shell be cumulative. This Guarenry shall not (unless speci0cally provMed below to Ne wntrary) affect Or Invalitlate any such other guarenties. Guerentars IIedIHy will be Guarantors aggregate liability under the terms d this Gueremy%and any such other uMerminated guaramies. INDEBTEDNESS GUARANTEED. The Intlebtednesa guaremeed by this Guarenry inclutlea the Note, Inclutling (e) all principal, (b) ell Interest, (c) all late charges,' (d) ell loan lees and ben charges, antl '(e) ell collection costs arM expanses relating ro the Note or to any collateal br Ne Note, Collectlon costs end expenses Inclutle without Iimastion ell of Lendeta permissible fees. DURATION OF GUARANTY. This Guaranty wiU+ake alfactwtum raCeNed by Lender without Ne necasslry of any acceptance by lender, w any rwtke to Guarantor or to Borrower, antl will continue in full /arcs until all Indebtedness shell have been lolly antl finally peltl end salisHetl antl ell d GuaraMOts' otlrer obllgatlwre under this Guarenry shell have been performed in fut. Release of any aNer guaremor or tenninatlon of any other guaranty of Ne Indehtetlness shall riot affect Ne liability of Guarantor antler Nis Guarenry. A revocation Lender ferelves Irom any one of more Guererltors shall not arced the Ileblley d Ony remaining Guarentors under Nis Guaremy. GUARAfJYOR'S AUTHORIZATION TO LENDER: Guerentor authorizes Lender, without no0re or tlemantl antl wltaout fessaning Guarantor's flablllty antler this Guaranty, from time to time: (A) b make one or more atltlHbnal secured or unsecured loans to Borrower, to lease equipment or other goods ro Bortowet ar aherwise to extend edtlitlonal cretlll to Borrower, (S) to alter, wmpromise, renew, extend, axelerete, or oherwise change one ar more times Ne ime for payment ar oNer terms of Na Indebtedness or any pert of tae Intlebtetlness, Inclutling increases end decreases of Ne rate of kaerast an tl1e Indebtedness; extenskns may be repeated all rosy be for longer Nan Ne odgkal loan term; (C) to take end hold security br Ne payment of fib Guarenry or Ne IntldbteUness, end exchange, enforce, waive, suboMinete, fell or decide not to parted; antl release any Such security, wiN or witllout Ne substllution al new wllaterel; (D) to release, substitute, agree Irot to sue, ar deal with any one or more d Borrower's sureties, endoreere, or other guarantore on any terms or in any manner Lentler may choose; (E) to determine how, when antl whet appliretlon of payments arM credos shall be matle on Ne Intlemetlness (F) to appty such security and direct the order or manner of sale thereat, Including w3twut Ilmltetlon, arty ronJutliclal sale permitted by Ne terms of Ne controlling security agreement or tleed of trust, as Lentler in its discretion may determine; (G) to sell, transfer, assign or greM penicipations in all or arty part d Ne Ihdebledness; and (H) to asslpn or transfer Nis Guaranty in whole or in pert. GUARANTOR'S REPRESENTATIONS ANO WARRANTIES. Guerentor represems antl warrants to Lentler that (A) no representations or egreemanta of airy kind have bean metle to Guaranor which would IImH or qualify in any way the terms of Nis Guaranty; (B) this Guarenry is executetl et Bonowets request and not at Ne request of Lender, (C) GuareMOr has hill power, tlghl and eumorily to enter Into Nis Guarenry; (D) Ne provlslCns of Nls Guamnty tlo not conHlct with or result In a default antler arty agreameM or other instrument bkrding upon Guerentor and do not result in a vlolatlon of arty law, regulation, coon decree or wrier applicable to Guarantor; (E) Guarantor has oat antl wit not, without the prior written cansem of Lender, sell, lease, assign, encumber, hypothecate, transfer, or aMerwise tlispose CI all or subsNntlally all of Guarentor's assets, or any Interest Herein; (F) upon Lenders request Guerentor will provitle to Lender Mancial and cretlH Intortnaion In toms acceptable to Lender, antl ell such financal IMOrmetkn wake CarenHy has been, and all future linarxAel Nlormfltlon which wit be pmvkletl to Lender k arW wK be Vue all correct N a3 malerlN respects end fairiy presem Guaramota flnencial condition as of Ne tlatea Ne flnendel mformaeon is provitletl; (G) no material adverse change has occurtetl In Guarentors Hnanciel contlitlon since Ne date d Ne mod recent flnendel statements provitled N Lentler antl no event has occurred which may materlelly atlvereely aHed Guarentor's financial contlitlon; (H) rro Iltlgatlon, claim, Investigation, etlministretiva proceeding ar similar ac8on (includirg Nose br unpeM taxes) against Guerentor Is'panding or threatened; (Q 'Lentler has matle nd iepresentetion to Guerentor es to Ne - watlgworynlnass of Bonowar; and (J) Guaramor has aslahlishad etletluate means of obtaminp Iran Bonowar on a comirluing bests iMOVretion regarding Borrowers flnencial candlllan. Guarantor agrees b keep anequately Intortned from such means of any facts, events, or circumstances which might In em/ way effect Guarantors risks under Nis Guaranty, end Guarantor further agrees Nat Lentler shall have no obligation k disclose to Guarantor anY htformmlan or tlocumants acqulretl by Lender In Ne urourse of its relationship wIN Borrower. GUARANTOR'S WAIVERS. Fxceptas pmhkaed by applkudae law, Guerentor waNes any right W require Lander (A) to continua lending money w to extend oMer credk to Borrower, (B) to make any presentrneM, protest tlamantl, or notce d am/ kind, Indutllrlg notice d any nonpayment of Ne hrtlabtatlnass or of any nonpayment related to any collateral, Or noHCe of arty action w nonection on Na pan d Borrower, Lentler, any surely, entlorsea w other guerentor in connecHCn wIN Ne Intlebtetlness or In connectlon with Ne creMlon of new or eddkional loans or odigations; (C) to resort for peymem or to proceetl directly or at once against any person, indutling Borrower or any aher guarenior, (D) to proceetl tlireWy against or exhaust any cMlslerel held by Caller from Bonawa, arcy other 9tmraMOr, w any oNer person; (E) to gWe lrotke of the terms, ihre, antl place of any Pub3C a private agile d pareonAl property security heltl by Lentler from Borrower or W comply wih any Omer applicable provisions of Ne Uniform Commerolal Coda; (~ to pursue any other remedy wihin Lender's power, or (G) to commit any act or omission of any Nind, or at any time, wih respect to any matter whatsoever. In addltlon N Ne waivers setWM above, H now w hereatle[ Uwrower is ar shall became insglvam and Ne IntleMedness shell not at ell times untll paid be lolly securetl by collateral pledged by Borrower, Guarantor hereby forever waNes antl gNes up In favor d Lender and Borrower, antl Lentlers end Borowers reapedlve successors, any claim or right ro payment Guarantor may now have or hereafter have or acquire against Borrower, by subrogatlon w otherwise, so Net at no Hme shall Gueramor be or become e'wetlikr" of Borrower wiNin Ne meaning of 11 U.S.C. sectlon 547(b), or any successor provision of Ne Fetlerel bankruptcy laws. Ouaramor also wolves any antl ell rights or tlefensas adsinL prevent Lentler iron bringing any action, indutling a clehn b em/ foreclwure acllan, either Iudkially or by exercise of a pa attecis GuaeMOta subrogation rights or Guarantors rights rights GVarentor may suffer by reason d any IoW Ilmitlng, qu of any ether guarantor, or of any other person, or by reason full in legal tentler, d Na Indebtotlness; (D) any right to clai Ne IndeMetlness; (~ any statWa of Ilmitationa, if et an' oulataMing IntleMednesa of Borrower to Lander which h no' at law w in eauav oNer Nan edual pavmeM and reason of (A) anV "one adbn' or oadonnance d the (rulebtetlness. ll radar Is fofced to remit Ne Intlebtetlness; ~ncy" law or any other law which may er's commencement or campletlon of which tlestrcys or otherwise atlvereely clutling without Ilmltatlon, any toss of cause whatsoever, other Nen payment In unjusHHetl impairment of airy collateral for igeinst Guerentor Is commencetl Nere Is or (FI anY delenses given to gueramore or 10 airy slm0ar parson under arty lederel ar state bankruptcy law or law for Ne relief d debtore, the Intlebtetlness shall~ba consitleretl unpaid for Ne purpose of Ne enforcement d Nis Guarenry. Gueremor fuller waWes antl agrees not to assert ar claim al any Hme any tletluctions lo'Ne amount guarenteetl antler Nis Guarenry for any claim of setoff eoumeroleim, counter tlemeM, recoupment or elmllar dgM, whemer such Balm; tlementl or fight may be assertetl by Ne Borrower, the Guerentor; or hoN.' GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS: Guarantor wprrenta end agrees Nal each of Ne waivers set forth above Is made party, on tl ' COMMERCIAL GU~RANTY Page t ' (CDntlnued) p wIN Guemntars full knowledge al its slgnigcence and consequences apd that, under Ne circumstances, Ne waivers ere reasonable antl not wMrery to publro policy or law. If any Such waver Is determined to be conhery b arty applcable law or public policy, such waiver shell be egedNe only ro me extent pennilled by law or publk policy. RIGF7T OF SETOFF. Guarentor grants to Lentlar a conbactuel security Interest In all Ouaantors accounle wiN Lender (whether checking, savings, or sane otlrer axounQ. This inclutles ell accounts GuereMOr holtls JoMtly with someone else antl ell acwunts Guarenlor may Open In the fuure. However, Nis dose not include any IRA or Keogh accounts, m any trust accounts far whldittre grant of a security interest would ha prohlhged by law. Guarantor adhodzes Lentler, ro Ne exieM permitted by applke0le law, b hold Neae faints a Here Is a defeutt, antl Lender may apply me Pontls In Vase accounts to pay what Guarantor owes urMer the terms of This puareny, and, at Lentlers option, to etlminidretively freeze ell such accouns ro allow Lender to prded Lender's charge antl setoff rights provltletl in Nls paregreph. SUBORDINATION OF BORROWER'S DEBTS TO GUARAMOR. Guerentcr agrees Net Ne Indehtetlness of Borower ro Lender, whetter now existing or hereafter created, shell 6e superior to arty dahn Na[ GuereMar may now have or hereafter acquire against Borrower, whether or trot 8ortower becomes Msdvent. GLataMIN hereby expressry sulxndNatas arty claim GuaraMrn may have against 8orrowar, upon arty eccobnl whatsoever, ro enY claim Nat Lender may now Or hereafter have ageinM Borrower. In Ne event of insolvency antl oonaequent IlquMatlon d Na assets d Borower, Nrough bankruptcy, by an esalgnmant for Ne benefd d credrtOre, by voluntary Iiquitlatlon, or omenvise, the assets d Bonower applicable toNe paymentot Ne clakns d lx><n Lender and 6uarentar shall be paid W lender and shell hetksl appfiad by Lender to Na ImleMetlnesa d Borrower . 'ro Lentler. GuareMor does hereby assign to Lender MI clahns which it may have or acquire against Borrower or against any assignee or wslee In bankmproy d Bonrower, provitletl however, that such easlgnment shall be effective Doty for Ne purpose Of assuring to Lentler full payment in legal tender of tlve Indebtedness. If Lender so requests, any rwtea or credg agreements now or heraeHSr evidencing any debts Or olaigaeata d Borrower W Guerenror shell Ire marked wIN a legend Net Ne same ate subJed ro Nis 6uerenty antl shell 6e tleliveretl to Lender. Guerenror agrees, and Lender b h~reby aumadzetl, in Ne name of Guerenror, fran time ro time ro execute antl BB financing stetertrents and condnuatlon statements end ro execute such other tlxumet~a and ro rake sua~ other adions u Lentler tleems necessary ar app riate to peeled, preserve and eMOroe ifs tlghts under Nie Guaranyrdotul•~,s}~J„tc~ ~e~ar~mnc~ Bo tartl{ ~ndEeC~eLf•a~ l~Puu.Qf'fldocccwrrzd-,b~aT..,Lhv+t+ /acupf MISCELLANEOUS PROVISIONThetdl ng ~leneous~Srovislona arse pert is Guerenry: ~LhtyinCn:~a O/I aC<dc/lfc~, ~~ Amendments. This Guerenry, rogether with any Reletetl Documents, constitutes the entire underetarMing end agreement of the pertles ae to the matters se[ forty In Nis Guaranty. No etteretlon d or amendrnem ro Nis Guerenry shell ba attecdve unless gNen In wrtgng erM signetl by Ne parry. or paMes sought to 6a charged or hountl by the alteredon or amendment - i Ezparlsea.' If Lender Institutes arty Hutt or action ro enloroe any of the temp Of Nis Guerenry, Lender shall ha entltled ro recover each sum es Ne court may'edfutlge reasonable. Whether of ndt arty court acton le Imdved, antl ro the extent not prohlbHed by law, ell reaaonabe expeneee /J~y (I Lender Incurs Nat N Lenders opNlon are necessary ateny time for Ne protection d Ne Intereetar the anromemeM of its riglns shell become a pert tnah~ d Ne Indebtedness payable on demand end shell bear Interest at Ne Note rata from Ne date d Ne expe~lure until repent. Expenses coveretl hY Nis paragraph Include, wltlrod Iimitatlon, however subject to any limits under applicable law, Lentlers expanses for bankmproy proceetlings (including egorts to modify Or vacate arty automatlc slay or Injunctlat), appeals, antl any eMkipatad post-judgmem edlectlon services, to Ne extent permMed by applicable law. puareMar also will pay airy court costs, In atltlitlon to ell oMer sums pravitled by law. Captton Headings. Ceplbn headings In Nis Guerenry are far convenien0e pugroses only and ere not to be used to IMeryret or tlafne Ne ' provisions d Nis Guaranty. Integretton. Guerenror further agrees Nat Guerenror has read antl fully untlersbntls Ne terms of this Guerenry; Guerenror has had the Opportunity to be advised by Guarantor's ~enomey wiN respect to Nis Guerenry; Na Guaranty fully regects Guarantor's iMentlo113 antl parol evklence is not required to interest Ne terms of Nb Guaranty. Guarantor hereby IndemnNies and holds Lender harMess from ell losses, claims, damages, eM costs (inclutling Lenders attorneys' fees) suffered or Incurted by Lentler as a result of any breech by Guarantor d Ne werrentles, representations antl agreements of Nov peregroph. - Intmpretatlon. In all cases where Nere Is more then one Borower or Guerenror, Nen ell words used in NIS Guerenry In Ne singular shall be tleemed ro have been used.in Ne plural where Ne content end conslructlon so require; end where there Is more than one BOrtower nametl in Nis Guemmy or when Nis Guaranty is executed by rtwre than one Guarantor, Ne words "BOmower' end °GUareMOr" reapedvely shell mean ell antl any one or more of Nem. The woNS °Guerenror,' 'Borrower," end "Lender" Indutle Ne heirs, successors, assigns, and trarreferees d each of Nam. If a court fintls Net any provisos of Nis GuareMy b riot valM or should rwt ba enforoed, that tact by 118e11 wAl not mean Net Ne rest of Nis Guaranty will trot be valM or enforced. Therefore, a court will aMOroe Ne rest of Ne proWSbns of Nis Guerenry even tt e provision d this Guerenry may be found ro ba invalkl or unenlorceabla. If any one a more of BOnower or GuareMOr are corporerlans, partnarehlps, Ihnitetl liability companies, Or elmger eMlilas, it Is nd necessary for Lender ro Inquire Inro Ne powers of Borrower or Guerenror or d Ne ofgcere, directors, pertnere, manegere, pr other agents acting or purpoMrlg b ad on Nalr behalf, erW any Loan intlebtednesa made or created In reliance upon Ne ,professetl ezercise d such powers shell ba BuereMaed antler Nia Guaranty. Noaeea. Unless otherwise provided by appllcabe law, any nogce required to be given antler this Guaranty shall be given In wdtlng, antl shall 6e ettedNe when aduaily delivered, when edually received b9 tefet~stmge (unless dnerwise regWrerl by law), when tleposited wiN a nat'wnally ' recognhetl avemigM couner, or, If meiletl, when depoaketl to Ne United States mail, es fiM class, OeNiletl or registeretl meN postage prepaiq directed ro Na addresses shown near Na beginning d Nls Guerenry. Any party may change id adtlress for ndices urder Nis Guerenry by giving forma{ wrNtan Irotbe b iha dnm partl0a, 5pecayNg that 0te PtlrPose d llw notice b W cnan9e Ne party's address. For rwtlce Purposes, GueMnror agrees to keep Lender informed et dlYlnles of Guarantors curtest atldress. Unless omerwise providetl by epplk461e few, a Nere Is more Nan one Guarantor, any notice given by LerMer ro anyl3uarentor is tleemed to be Irotlce given to all Guarantors. No Waiver by Lender. Lender shell nd be deemed to have welvetl airy dghia under Nis Guerenry unless such waNar Is given M wmmg and • signetl by Lender. No delay Or Omission on Ne pert of Lender ro ezemising arty tlght shell operate as a wavm of such right or any omar right. A waiver by Lander d a provision of Nis Guaranty shall not prejutllce or constitute a welder d Lentler's right olhenvise ro tlema0tl drtct compliance with Nat provlslan or any other provision of Ihis GuereMy. No prior waiver by Lander, trot arty course d tlealMg between Lender and Guarantor, shell constlMe a waver of any of Landers rlBhla or d arty of GuereMOrs obligations es~ ro any future trensacllons. Whenever Ne consem of Lentler la requlretl under Nls Guerenry. Ne grenfing of such consent by Lentler in arty Instance shall trot consteute continuirg mnSeM to subsoquent Instances where such consara fs requiretl end In eN cases Such cglseM rtrey be granted m wrihheld Mihe Brie discretbn d Lender. Suxeseora and Assigns. The terms d Nis GuerenN shall be bintling upon Guarantor, end upon Guarantors heirs, personal represaMatives, suxesaore, ant assigns, eM shell ba enforceable by Lender antl Lenders successors antl assigns. Waive,JUry. Lender end Guarantor hereby waive Ne right ro any jury Mel h arty action, proceeding, or counterclaim brought by eaher Lentler Or BOrcower against Ne other. LIMRATION OF ACTION. If the Borrower has arty cause of adios against Ne Lender, now or In Na future, arising out of Na Related Documens and th trensactlons contemplated by the Related DocumeMS,'whether In centred or ton or otherwise; Ne Borrower must assert the claim wghln One year d Ne occurrence of Ne event whkh gives rise ro a cause d ecibn. If Ne Borrower tloes nd assert the claim wlNin one year d Ne Occurence d a cause d adkrn, Ne Borower will be berretl from asseninp Ne claim. Hofrower altl lender agree Net Ne one yam lima pMbd b reasonable and sulficieM rot the Borrower tO Investlgete end act upon Na claim antl that Ne provision shall survive any termination d Ne Agreement DEFlNlT10NS. The rogawNg capitalized vroms antl romis shell have Ne following meanings when usetl in Nis Guerenry. Unless specifically sletetl to Ne cOMrery, all references ro tldlar amounts shall mean em0ums in lawful money d Na Ungetl Slates of America. WanLV end terms usetl in Ne aNgdar shall IndudeNe plural, antl Ne laurel shell include Ne singular, u Ne context may require. Wards antl terms not otherwise defined In this Guaranty shag have the meanings enributed to such terms in Ne Unirortn Cormnerolel Cade: Boroower. The word'Borrower" means CARLISLE SPORTS EMPORIUM INC., end all aNer persons antl entitles signing Ne Nde in whatever capacity. Guarenlor. The woM'GUarantor" means each antl every person or entry slgning.Nis Guerenry, Including without gradation JAM1E PLASTEAEA. Guaranty. The wCro'GUarenry" means Ne guarenry from Guarantor to Lentler, Inclutling wghou[ limitation a guarenry d ell or part of Ne Note. Indebtedness. The wont `Intlehtetlness° means Bprtpwars IntleMedness ro Lentler as more particularly descflbed In This Gueramy. Lender. The woro'Lender^ means Unitas Benk, a dNisbn of First CommonwaalN Benk, tts successors antl assigns. Note The vroM'Nole" means the promissory ode tletetl December 29, 1980, in me ongfnM prlncfpai amount of 375,000.00 nom Horcower to Lender, togatlrar wgh ell renewals of, extensions of, motllgcatlons d, refinencinga of, coasolitlations of, antl substttutions for Na promissory note or agreement. ' Related Documents. The woros 'Reletetl Oxurtrents" mean ell promissory notes, credit egreementa, loan agreemenk, environmental agreements, guaranties, security agreements, mortgages, tlaeds of trust, secur'dy debacle, ~ilaterartgd all omen instrumern~l~y~" a0.4Q egraemeMa antl tlecuments, wheMar now~O~phpreeX~er ee(xlatingy''¢~xec~ute Ci~~ nnecllonpyw~ltf~Nmal ebtetl e { ~ ,,,`YF„~_'„' Tf t"Ice.c. r CONFESSION OF JUDGMENT. Guarantor h reby IrrevocBBl~ IMrrza~ntl enp~Owers 9~' attorney or the ono cry or Clerk of en Court in the r, Jy CommonweelN d Pennsylvania, or elsewhere, to appear at any tlma for Guarantor BIM, wgh or wiNOUt complaint filed. as of any tens, co~t~e ~or epter~ n~ .- COMMERCIAL GUARANTY` ~ Page 3 (Continued) )utlgment agalnai Guarantor for the entire principal belenbe d this Guaranty end ell accrued Interest, together wllh~cWls of suH, end an adamey's crommisalon of ten pement (10%) of Me unpaid ptlncipel balance antl accrued Interest br cdleodon, but in any event not less than Flve Huntlretl DUlers ($600); antl for so tloing, this Guarenry or a copy of this GuerSnry verged by a9ldevit shall ba sufficient warrant The au9tbriry granted in this Guerenry to sonless )utlgment against Gus2nror shall not be exhaustetl by any exemise of that aumotlry, bd shell continua hom time to time entl at ell tlmas until payment in full d ell emount3 due antler This Guaranty. GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMEflCU1L GUARANTY IS GATED DECEMSEq 29, 1999. THIS GUAgANfY IS GNEN~UNDER SEAL AND R IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTFM'E'AND HAVE THE EFFECT OF A SEALED INSTRUMEM ACCOgDiNG TO LAW. GUARANrOR~ x •; ~ , . ~ - ..:;""~~'~ . `(seep J N9E •qER Intlivltlually wm.bi..m~...,,......,x. om.....a,,.~a, in,m... ~n.,...b.. m..,»,«....,...e.. ~,~,.~.a.,.,.,®.a ,nm, ~~,a~.i <;. PROMISSORY NOTE ' .. Principal Amount: $75,000.00 Initial Rate: 9.500% Date of Note: December 29, 1999 PROMISE TO PAY. CARLISLE SPORTS EMPORIUM INC. ("Bortower") promises to pay to Unttas Bank, a tllvlslon of Flret Commonwealth Benk (°Lentler'), or omer, in lawful money of the Uni[etl Staten of America, me principal amount of Seventy Five Thousentl & 0%100 Dollars ($75,[100.90), together with interest on ma unpaid pdnmpaf balance from December 29,19, un61 paftl in IWI. PAYMENT. Subject to any payment changes resulting from changes In the Index, Borrower will pay rots loan in 72 payment of $i,B75.90 each payment Borrower's first payment Is due January 29, 2000, antl all subsequent payment are tlue on me same tlay of each month after mat. Sortawa's tlnal payment will be due on December 29, 2005, and will be }or all principal.antl ell acpuxl Interest not yet paid. Payment inelutla Principal ant IntergL Unless omerwisa agreetl or requiretl by aPPOcabt law, paymanta will be applkW Oret b iteiued unpaW IntaesL mat tc principal, antl any remaining amount to any unpaitl wllecllon coals. Tha annual Iptreat rate for rot Not t eomputW an a 3%/Sfi0 basis; that Is, by applying the ratio of me annual Interest rete over a year of S60 days, multiplletl by the autstntling principal balance, multlplletl by ma aobal number of tlays the principal balance is olnatanding. Bortower will pay Lender at Lender's address shown above or et such Omer place as LeMer may tlesignate In writing. VAflIABLE INTEREST PATE. The Interest rate on rots Nme t subject tc chenBe Irom time to tlme based on changes in an IMependenl Index whkh t me highest prima rote quotetl in the Well Street Journal (me'InrJex"). The Index is Trot neceeaedly the tweet rat charged by Center on tts loans, Il me IMax becomes unevailaMe during me term m rot loan, Lentler may tleaignef a su0atllute Intlex otter notice ro Borrower. Larger will tell Borrows me curtest Index rate upon Borrower's request. The interest ref chenBe will nm occur more atten Olen each tlay. Bortower untleratntls mM Caroler may make loans based on pmar rata es we0. The kulax currently t SS66%per annum. The mtereat [ate to ba applied to the unpeW prktblpal balance of this Note will be a<a rate of 7.000 percentage point over me Intlex, resulting In an initial rat of 9.500 % per annum. NOTICE:. Under no chcumsiences will me infresl rele an mis Note be nrore than Ore maximum rat allowed by applica6t law: Whenever increases oxur m me Interest rate, Lentler, et its option, may do one ar more m me following: (A) Increase Bortowers payment ro ensure Borrower's loan will pay oO by It odglnel final mafrf/ date, (B) Increase Borowers payments to cover eccming Interest, (C) Increase ma number of eortowers payment, antl (D) continue earowera payments a1 Ore same amount and increase Barowa's ikN payment. PREPAYMENT. Borrower may pay wlNOm penalty all or a pomon of me amount awetl earlier then tt Is tlue. Eedy paymeMa will not, unless agreetl ro by Center f wMing, relieve Bortower of Borrower's oblig9tlon ro continue to make payment antler me payment schetlule. Reme4 early payments will reduce me principal balance due antl may result in Bartowers making fewer payments. Bortower agrees not to aentl Lender payment merked'peltl b fu0", "w1moW recourse", ar similar language. II Bortower sands such a paymaO, Lender may aocept 6 wNwut bsfg any m Lender's right antler rot Not, antl Borrower will remain obiigafd to pay any further amount owed ro Lentler. All waxen communlcetbns concerning disputed amount, Irrolutling any check or omer payment Instrument that Intlicates that ins payment constitutes "payment In kill" m me amount owetl or That Is teiMeretl wim omer contlMOns w Iimiftlons or as full satlsfactlan of a tlisputetl amount must be mailed or delNeretl ro: Unites Benk, a tllvlslon of First Commonwealm Benk: Chembareburg Olflce; 15 Soum Meln Stee4 PD Box 777; Chembereburg, PA 17201. INTEREST AFTER DEFAULT. Upon default, includ'mg (allure ro pay upon final maturity, Lender, at Its option, may, If permMetl under eppikable Lew, Increase me vartble kterest rate on mis Note tc 6.000 peroentge point over the Intlez. The Interest ref will not ezceetl me mezlmum rat permtttetl by epplkeble Lew. If judgment t entered in connectlon wtlh mis Not, Interest will caMlnue ro accrue an mis Nma attar judgment at the Interest rata eppllceble ro rots Note et the time judgment is entered. DEFAULT. Each m me following shell constitute an event of default (°Event of Defeull°) antler rot Note: Peymem Default Borrower fells to make any payment when due antler rot Nme. Omer Detult. Borrower fails to comply wkh or ro pedam arty omer tens, abllBagon, covenant or cronCitlon confined In mis Nate or In any of me retletl documents a b comply wim or ro pertarm ary tm4 abligahon, covenant or wrMikan cantaketl In any omer agreement bahveen Lender antl Borrower. -' Falm Statements. Any warranty, rapresenttlon or sttment made or famished ro Lender by Bortower or on Borrowefs behalf ulWer this Note a me relatetl tlocumems is Else or misleadinO In any mfltetlal respec4 eimer now or et me tlme made or famished or becomes false ar misleatling at am nme mereeker. Insolvenry. The dissolutlon or tertninetion of Borrower's exlstnce u a gokB business, me insolvency of Bortower, me appmnOnent of a receiver far arY pert m Borrowers property, any assignrtwnt for me benefit m credttors, any type of crediror workout, or lire commencement of any proceeding under any bankmptcy ar insolvency tws by or against Borrower. CsWaor w Fodeltae Proceedkgs. Commencement m torecloaure or fodexae proceedktga, whether by IutlkJal proceedfg, self-help, repossession or any omer matliotl, by any cretlitar of Borrower or by any govemmentel agency against any colialerel securing me ken. This Inmudea a garnishment of any of Borrower's account, Inclutling deposit account, wim Lentler However, mis Event of DefeWt shall not apply if mere la a gootl relm dtpme try Borrower az ro me valkxy or reasonableness of me ctlm which is ma basis of the cretlttor or forfeiture proceetling aril x Bortower gNes Lander written noxce of gw oretl0or or fodetture praceedkg and deposit wim Lentler monies or a surety bontl far ma creditor or forteflura proceeding, f an amount detrminetl by Lender, In xs sda dscreOOn, as bekg an adequate reserve or bond rorma dtpme. Evards AtteeBng Guarantor. Any of me preceding event occurs wOh respect to any Guarenror of any of me intlemetlness or any Guarantor dies or bewmes IlwompateM, ar revokes or tlisputes me velktty o4 or Iiebllity under, any guaranty of me indebtetlneas . In the evem m a deem. Lentler, at It opton, may, but shall na be requiretl ro, pertnH me Guarantors estre to assume uncMdlibnally me obligations arising urMer me guarenly f a marmer sa9siactory to Lender, etM, in doMg w, cure arc/ Eventm DefWl. Change In Ownership. Any change In ownership of Twenty-five percent (25%) or more of me common stock of Bortower. , Adwree Change. A materiel adverse change occurs In Borrower's flnenctl contlaion, or LerMer believes me prospect of payment ar pedomlance m mis Note Is impairetl. In9ecunly. Lender In gootl taiih believes Itelf insecure. ' Cure Prowalona If any default, omer man a detuN Ip.paymeM, is curette and'rf Bortower has not been given a notice of a breach m me same provision m mis Nma wimin me preceding twelve (12) monms, tt may ba curetl (antl no avant m default will have occurred) If Borrower otter receNing wrxten rroNCe from Lender demanding cure of such tlefault: (t) cures me tlefault wMtin fdlean (15) days; ar (2) 8 me cure requires more men fltte~ (15) tlays, Immedlaely fiiletes steps which Lentler deems In Lentlers sole diecredon ro be sumcient to cure me tlefault antl mereatter continues end camplmes all reasonable antl necessary steps suOictnt ro protluce compltxe as soon as reasonably pramiral. , LENDEWS RIGHTS. Upon dmaWi, Lentler may, attar giving such rrotlces as required by epplkeble law, declare me entire unpaitl principal balance on rot Nme end all apcmed unpaid interest Immediately due, end men Borrower will pay that amount IXPENSES. If Lender InaMata arty suit or action to enforoe any of the tans of this Not, Lender shell be enWled to recover such sGm as me court may adjudge reeeorleble. Whemar or not arty court actor is involvetl, and tome ezfM not prohibked by law, all reasonable expanses Lentler incurs mat In Lentlera oplnbn are necessary et any tlme for me prmectlon m Its interest or ma enforcement m tls tight shell become a part of me loan peyahle an demand and shall bear kterest at me Not rate from me date of the expenditure omit repakl. Expenses covaetl by mis pereereph inclutle, w1Orom lkMftbn, however subject to any gmtts under appxcahle law, LendeYS expenses for banknWlcy proceetlings (fcludbg ettoris f motlihy or vacat any amomaik sty or injunmion), and appeals, ro me extent permitted by applkahle law. Borrower also will pay any court cost, In atld'NOn to ell omer sums Provltletl by Lew. ' JURY WAIVER. Lander antl Bortower hereby waive me right is erN jury hlal in any action, proceeding, or counterclaim brought by either Lentler or Bortower e0ains[ me omer. RIGHT OF SETOFF. Borrower grant to Lender a con[recfal securM/ Interest in all Borrower's account whh Lender (whemer cnecking, savings, or some omer account). This Includes all accounts Bortower holes jclntly wim someone else end all account Borrower may open In the future. However, mis does riot Inclutle any IRA or Keogh accounts, or any host account for which me grant of a securtty interest would be prohibited by law. Borrower aumorizes Lentler, ro me extant permixetl by eppiicable law, to cheBe or serox all soma owing an the Intlebftlnass against any antl all such accounts, antl, at Lentlers option, ro administratively freeze all such axouMS ro allow Lender to protect Lenders charge and smoN right provided In mis BOrrOwer: CARLISLE SPORTS EMPORIUM INC. (TIN: Lender: Unitas Bank a tllvlslon df Flret Commonwealth Sank 25.1684869) Chembereburg ORice 1161 UNDHAM CT STE 784 15 SOUth MnM'Stseet ' MECHANICSBUflG, PA 17055 PO Sox 777 E Chamberebuz9, PA 17201 ,t (n7)z67•,776 .~ PROMISSOkIY NOTE Page 2 (Continued) peregreph. LIMTTATON OF ACTON. If Ne Borrower has any cause of action against Ne Lentler, now or In the fuNre, arising out of the Relatetl Documents and lire irarreacllons coMemplatetl by The Heletetl Documents, Weather m corMacl or ton ar otherwise, the Borower moat assert NB claim wiNin one year of the accurterMe of Ne event which gNes dsa to a cause of ectlon. If Ne Borower tloes rwt assert the claim wNhm one year of the occurenee M a cause of acton, the Borower will be bartetl from assertlng the Balm. Borower antl. Lantler agree that the one year tlma perlotl is reasonable antl su{gcieM for the eormwar to fruestlgate and ~ upon the claM end thM the provls{on shah sunrWe mry terrtsnatbn of the Agreement. YFAq 2000 PROWSIONS .The Veer 2000 Problem hea nb reeu0ed In, antl wNl not esuN m a meterhl adverse change to the buemeas, properties, assets, flrDndal condNlon, resuNS of aperetlwq or proapech of the eortower, antl hea not end will not impair materially the eNIMy of the Bortower to duly and punctually pry ar perform airy of Ns abllgetlona owed re the Lentler. Frain tlma to tlma, wNhln 1weMy (20) days attar any request by the LeMer, the Borrower shell deliver b Na Lender a wgden report es to Ns compliance efforts in connectlan wiN the Year 2000 Problem, in such tletell as the Lender may reasonabley request In addition, me Borrower shell, upon any request of the Lender, permit the Lender, upon reaswlaWa notice antl durtng rWrmel business hours, to meet wNh the Borrower's Inhmnatlon systems antl technologies employees anNor cuhkle providers, W dhows Ne status of Ne BortoweYS compliance eiforh in connectlon wNh the Year 2000 Problem and Ne equal antl aMkipeted costs thereof. The Borrower aheil take ell ectlon necessary to Insure Ne computer-based systems utllhed by Ore Borower are able to e8ecdvery process date and padprm lunctlona, induding wNhout IhnNaNOn ea to dates pn or attar December 31, 7999, such Net no rtwtertel adverse change tome Borowers business, propeMes, assets, Ilnenchl contlltlal, results of apertatlans or prospects wIN result For purposes of Nis provislan, 'Year 2000 Pmblem "means the risk that compmer applhstlons usetl by or far me heneft of Ne Borower may ba unable to recoginze or properly perform datasensXlve lunclicns Involving vermin dates prbr to, end anY tlma after. December 31, 1999. LATE CHARGE A late charge will be esseeaetl in the amount of 5% of the regular payment or portion Nereot that remehrs unpaid far more Nan ten (10)days beygnd Ote due date. The mNMum late charge amounth $25.00. This ctrerge cant be.NnmeDlal0lY due alW-paYeUle. GENERAL PROVISIONS. Lentler may delay or forgo enforoing arty M Its rights or remetlies under Nh Nola wiUroM being Nam. Borower erM erry omen person Who signs, guarantees or entlarses Nh Note, fo me eztenl ellowetl M' law, waive pieseMment dementl tar payment, ant-nWCe of dishonor. Upon erry change in Ne terms of thle Note, end unless otherwhe expressly statetl in writing, no perry who sierra Nis Note, whemer ea maker, for any lertgm of time) mh loan or release any party or guarantor or collateral; or impair, fail b real¢e upon or perfect Lendens.sscurity interest In the coNMerel; end take any Diner ecttCn deemed necaseery M Lender without Ne consent of or notice ro anyone. All such peMes etw agree Nat Lender may motley Nh loan without the consent of or native b erryone Diner man me party wM7 whom the motliNCeticn le made. The abNgeNOns under Nis Note ere Joint end several. N arty portlon of Nis Note le for any reason elemuned to 6e unantorceable, It will ~ e~Ue_c the en ~ ~~ c~ provlaiwre piasa NOle. r~ponvra}der ~otGUrrau.rrL.~a,~CvcaYa.Lc CONFESSION OF JUDGMENT. Borrower h Irrevocably auNorhes end empowers any attorney or Nor thonotery or Clerk of any Court n ePY14Y~ Cammomveetih al PennayNanla, or elsewhere,,to appear at airy time for Borrower end, wNh or wbhoW Canpleint filed, ore of any term, coMeea m enter g/,^r Judgment against Borrower for Ne endre prtncipel balance of Ws Note and ad accrued irneree4 bgether wNh caste of suH, and en etlomeys commisalan of ten pefom (7g%) of Na unpaid pdnclpnl bMence and accmed Imerest for golleMiar, bM in any evert not less then FNe Hundred Dollem ha }10, (5500); and for so tldng, Nls Note or a copy of Nis Note ved0ed by affltlavN spell he suIllcleM wertent The euthorby granted in Nh Note b wnfess fD Judgment against Bortowar ahMl not be exhawted M' any ezarclse of Net euthCrM/, but sheN contlnue horn time to tlma antl at all Nrtcea until peyrtrent in bc.~tr full of ell emcunh due wrier this Note. PRIOR TO 91GNM1G THIS NO1E, 80AROWEN READ AND UNDERSTOOD ALL THE PROVISIONS OF THtS NOTE, NlCLI1DlNG THE VARI0. INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TEFIMS OF THE NOTE BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE gFao~ THIS NOTE IS GNEN UNDER SEAL AND fT IS INTENDED THAT THIS NOTE IS AND SXALL CONSTffUi'E AND HAVE TNE. EFFECT OF A //I ~a,/I,( SEALED INSTRUMENT ACCOROIN6 TO LAW. - BORROWER: CARLIS ~C ITFI R R, real ant a1 CAR SLE SPORTS EMPORIUM INC. IWBIrto,~wcMU.&Fxfi4cR.. w. 6,txo,p,rr.~N iflFLxsnue uMPr.a .w CYWa,w 1Pm mnmeM ^~e'dH%y,5kas~tlxarwt -a~. _ fi~ ZG.~G~€.zdvawsasP ~..:.v r.-c: w s!e ~r a s..~raa€rehuzrv~avaer:~raaza --""'zu: s~~ r ~ e, s \V r-\ V^l v,~ V~ vl ~O ~~~ C_ K'„ ~i~^' 'J !7 _. l L. 1 L :~ v' -n ~~ 'L~i ~.~ :~ <~ +'J _ C1,' !. ~~ (_., i