HomeMy WebLinkAbout01-05561S
Donald L. Kornfield
Attorney fPr Plaintiff
17 North Church Street
Waynesboro, PA 17268
(717) 762-8222 or 267-3202
FAX 762-6544
don@kornfield. net
Atty. I.D. #19242
UNITAS BANK IN THE COURT OF COMMON PLEAS OF
Plaintiff THE 9TH JUDICIAL DISTRICT, PA.
vs. CUMBERLAND COUNTY BRANCH
CIVIL ACTION - LAW
KEITH PLASTERER # f~ _ /S'~
Defendant .7
CONFESSION OF JUDGMENT
PURSUANT TO Pa. R.C.P. RULE 2951 (b)
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.
Donald L: Kornfie d '
Attorney for Defe dant suant to W arrant of
Attorney Contain Complaint Filed
Hereinbefore
a
UNITAS BANK IN THE COURT OF COMMON PLEAS OF
Plaintiff THE 9TH JUDICIAL DISTRICT, PA.
vs. CUMBERLAND COUNTY BRANCH
CIVIL ACTION -LAW
KEITH PLASTERER # i „
Defendant Q~ / UAa/."`//
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 Keith 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, Plaintiffdemands 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. Kornfiel
Attorney for Plainti
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
Robert C. Williams
President
, ~ COMMERCIAL.,GUi4RAN1'~.
GU878RtOf: KERN PLASTERER (SSN: 181523380)
38 KELLY DpWE
CARLISLE, PA 17013
AMOUM OF GUARANTY. ThIs Is a guaranty o/ payment of 100.000% of iha Note, Inclutl(ng without Itmltatien the prlneipal Note amount of
Seventy Flue Thousand & 00/700 Dollars ($78,000.00).
GUARANTY. For good antl valuable eonsideretlon, KERH PLASTERER ('Guarenmr") absolutely and uncondltlonally guarenteea and
prommes m pay m Unitas Bank.a division of First Commonwealth Bank ("Lender") or Ks order, in legal tentler of He UnitM Stall Of Amerip,
100.000%of Ha Intlebtetlneas (as that term Is defined below) of CARLISLE SPORTS EMPORIUM INC. ("Boroower") to Lender an the terms antl
centlltions sat torch In this Guaranty, Guarantor ~agreee that Lender, in Its sole discretion, may determine which portion of Bortower's
Indebtedness m Lender is covered by Guarantor's porcemaga guamnty.
MA7(IMUM UABILRY, The meximtun Gablliry M Guarantor under tMs Guaranty shall not exceed at arty otw time 100,000 % of Ne amount of the
Intlebtetlness tlescdbed herein, plus ell costs antl expenses of (A) amoroement of this Guaranty and (B) collection antl sale of arty cellamrel securing
HIe GuareMy.
The above Ilmaatlon on Ilebiliry is not a resiriclbn on Ne amount of He Indebtedness of Borower to LeMer either in Ne aggregate or et ar0' one lime.
If Lentlm presently holds one or mom guarendas, or heraetler receives Mtlitlonel guaranties ban Guarantor, Lender's rghm under all guerentiea shell
be cumtdativa. ThIs Guaranty shall rim (uMass spacl0caDy proWtled below m the conbary) miect m ima0dam arty such other guaraMms. Guarantor's
ImbNiry wtll be Guarenmrs eggregam Ilabllity under the terms of this Guerenry antl arty such other unlertnlneted guaanties.
INDEBTEDNESS GUARANTEED. The IMebletlness guamMeM by Hla 6uerenty includes the Nole, inclutlinp (e) alt principal, (b) all inlereaL (c) all
late charges, (d) all loan tees end loan charges, antl (e) all collection costs and expanses relating to the Nole or ro any collaterel for the Nole.
Collectlon cosm ell expenses ixlutle wRhvu[ Ilmitetion all m Lenders permissible fees.
DURATION OF GUARANTY. This Guerenry will take egect when receivM by Lender without Ne necessity of any acceptance 6y Lender, or any notice
m Guarenmr or m Bortoweq antl will wntinue in full force untll all IntlebtMness shall have been fatty antl Iinally pent antl satlstlM end all m Guaramors
other obllgetlons antler His Guaranty shell have bean pertormed In full. Release M any offer guerentar or mrminelion cl arty oNer guerenry of the
IMeMetlnese shall ut egeet the IIabIIIN of Guaranmr antler His Guerenry. A revocatbn Lender receives from any one or more Gueremore shell not
egem the Ilebiliry or any remaining Guerentors under this Guerenry,
GUARANTOR'S AUTHORIZATION TO LENDEp. Guarenmr eumorizes Lender, without notice or demand and without lessening Guarantor's
Ilabllity antler this Guerenry, tram time to time: (A) m make one or more etltlkmnal secured or unsecurM loans m Borrower, m lease equipment or
other goMS to eortower, or otherwise tc extend additlonel credit ro Bortawar; (e) m alter, compromise, renew, extend, accelerate, or omerwise
change one ar more times Ne time mr payment or oNer terms of the Intlebtednass or any pad of Ne IMeMMnoss, including increases and decreases
of the rata of Nearest on the Indebtedness; exlenslona trey be repeated ant may be for longer Nan Ne origktm loan teem; (Cj m take ant hWd
securky for He payment of this Guerenry or the Indebtedness, end exchange, enforoe, waive, subortlinam, fail ar decide not m parecL ant release any
such secur0y, wIN a wahoM He substitution of new wllaterel; (D) m release, substitute, agree Mt m sue, or deal wiN any aria or more of Borrower's
sureties, eMorsers, or other guarenmrs on any terms or In any manner Lender rnny choose; (E) m determine how, when and whet applmatmn of
payments antl credits shell be made on Ne Indebtedness (~ ro appty such secuihy antl tlired He order ar manner of sale Hereof, Ixluding wtlhom
Ilmilatlon, any ponJudldal sale permk[M by He mrtns of He caMmllhtg secutlty agreement or deed M imsL ea Lender in its dlacratlon may tletartnine;
(G) m sell, irenater, assign or grant participations in all or any pert of the Intlehtetlness; end (H) m assign or transfer Nis Guaranty In whole or in pert.
GUARANTOR'S REPRESENTATIONS AND WARRAN77E3. Guarenmr represenm antl warreMS to LaMar Nat (A) no represenm0ons or egreemenm
of any kIM have been made m Guarenmr which would lime or quality In em/ way Ne mans of ihla Guerenry: (B) Nis Guerenry is ezemdM et
Borrowers request antl not et Ne request at Lender, (C) Guarantor has mil power, fight end amhorlly m emer Into Nis Guerenry: (D) He provisions
of His Guaranty do Trot conOmt with a result in a default umlei atty agreement or other Instrument hNtdlhp upon Guarentor ant do not result in a
vbmtbn of any law, regula0on, coon decree or order applicable m pueremor, (E) Guaranmr has not antl will not, wigmut Ne pdor written concern of
Lentlar, sell, lease, assign, encumber, hypoNecate, transfer, or otherwise tlmpose of all or substantially all of GUarenmrs essem, or any imerest Herein;
(~ upon Lender's request, GueraMOr will provide m Lender Manclal and credo Infortnatlon in mrm axepmhle to Lender, end all such tinenciel
Nlormatlon whkh currently has been, antl alt future financial Infortnetlon which will be provided m Lender is end will be true antl correct in ell material
respects ant IeMY Present Guaranmrs Orenciel condition as of Ute dates Ne iktarmWl imomtaOOn ¢ provmed, (G) no mamrml adverse change has
occurtM in GuereMars ilnanciel condl0on since Ne date of the most recentfinanciel ammments provmM io Lender and no avant pea occurted which
may memdally aMersely aged GueraMOrs financial candgmn; (H) rw litigation, claim, imrestlgetlon, Mminmtretive proceeding or similar ectlon
(Indudilg Nose far unpaid texas) ageimt Guarentor Is pending or HraetenM; (I) Lender has made no reprasenmlion m Guarantor as m Na
credOwoMlness-of Borrower, end (J) Guaranmr has esmbllshM Mequme means al obmining ham Borower on a coMnuinB basis Iniormetlon
regeMing Borowers flnanciM contlPoon. Guarenmr agrees m keep Mequamty InfortnM ban such means of any teas, events, or circumstances which
might in any way afleM Guarentors risks antler Nis Guerenry, antl 6ueranmt further agrees Hat Lender shell have no obligatbn m disclose to
Guarenmr any Inmmlatbn or documents acquired by Lender In the course of its rela0onshlp wiN Borower. ,
GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarentor waives any right to require Lender (A) m continua lending money or to
extend offer credk to Borrower, (B) to make any praeentmenp Protest, demand, or notice of any king including notice of any nonpayment M Na
lMebtetlrteas of of any nonpayment related m any cclWteral, or rwOCe of any aamn or ranmtmn on Ne part of Borrower, Lender, any surety, endorser,
or other Buarmdor ih connection wIN Ne Intlebtetlneas or in connection wBt Ne creation of new or edd'Nonel loans or obligations; (C) m resort for
payment or m proceed directly or et once against any person, IrelMing earower or any oNer guaranmr, (D) to proceed directly against ar exhaust
etry collaterel held M' Lender from Borrower, any other gtlererlter, or any other parson; (~ m gNe notice of Ne terms, time, antl place of arty public or
pdvem sale of personal property securtry held by Lender from Borrower or ro comply wIN any omer applicable provmmns of the Uniform Cammerolel
Coda; (p~ m pursue any aNer remedy within Lenders power, or (G) to commit any act or emission of arty kind, or at any tlme, wiN respect to any
maser whatsoever. - ,
In atldmlon m Ne waNers sqt myth above, if now or hereaher Borrower is or shall become inbolveni ant Ne Indebtedness shell not at ell times until paid
be fully secured by celleteM pIMgM by Borrowey Guarantor hereby forever waNes ell gives up in lavor of Lender antl Borrower, and Center's ant
Bortawera respective succesaore, any claim or fight m payment Ouerenror rtisy now have or heraeker have or acquire against BortaweG by
sulxagatton a otlterwise, ore Nat at nor time shall Guaranmr 6e or become a °crediWr' of Harrower wiNN Ole meaning of 71 U.S,C, section 547(b), or
any successor prowslon of the Fetlerel bankruptcy laws.
GuareMOr also waNes any and all rights or defenses arising by reeean of (A) am/'one ecdon' or "antidefidency" law or any other law which mfly
prevent Lender from bringing am/ action, Including a claim mr degclency, egamst Guaremor, bemre or attar Lenders commancemaM or completion of
any foreclosure action, either Judicially or by exeroise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise etlvemaly
effects GuareMOrs aubrogetion tights or Guarantors fights to proceed ageism Borower to reimbwsemaM, NclMing without I'ttn{miton, any foes of
dphm Guarenmr may su0er by reason of any law Iimitlng, quelitying, or discharging Na Intlehtedneas; (C) any disa611ity or Omer defense of Borrower,
of any omer guarantor, or of airy other person, or by reason of Ne ceesadon of Borrower's Ilabllity from airy cause whatsoever, other Hen payment in
full in legal tentler, W Ne Indebmdness; (D) any right m claim discharge of Ne IMebtednass on Ne basis of unlustifietl impairment of arty wllaterel for
the Indebledmass; (E) any smmte of limitatlona, if e< any time any action or suit brought by Lender against Guarantor Is cemmm~cetl there Is
outstaMing lndebmdrresa d 8ortower m LeMer whmh is rent parted by ervy eppiicabm stamen of km9alions; w lFJ any defenses gNen m guarardors
at law a in equity other Omn actual payment end perormance of Na IndebiMress. If payment is made by eorower, whether voluntarily or oNawise,
or by any Him party, an Ne Indebtedness antl Nereafier Lender b foroM to remit Ha amount al Nat payment m Borrower's trustee in benkmptcy or to
any slm0er parson antler any federal or state bankruptcy law or law tar Ne relief of tlebmre, Ne Intlebmtlness shall be cronsmerM unpaid far the
purpose m Ne enmroertrent of Nis Guerenry. -
Guerenmr mlater weYVes and agrees not m asses or ciehn atany tlme enY tlMUC0om m He amount gueremeetl uMm this Guaranty tot any claim of
semK, coumeroleim, ceunmr demand, receupmant ar similar right, wheher such claim, demand or right may be asserted by Ne Borrower, the
Guarentor, or boN.
GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarentor warrants antl agrees Hat each of Ne waivers set fogh above is mMe
BOMOWeT: CARLISLE SPORTS EMPORIUM INC. (71N; Lenee7: Unhas Bank, a dlvleion of First ComrdonwealH Bank
28.7834983) - Chembersburg ORlce
1101 LINDHAM CT STE 704 78 South Main Street
MECHANICSBURG; PA 17055 PO Box 777
' Chambersburg, PA 17201
(717)237-,778.
COMMERCIAL GUARANTY Page 2
(Continued)
wah Guerantar's lull knowledge of its signlHeence entl consequences Bad Net, antler the ciroumstencas, the walvere are reasonable and not contrery ro
public pclPoy or law. tt airy such welver Is tlererminetl to be comrery ro any applicable law or publk poicy, such wawer shell ba effective only N the
extent permHted M law or public policy.
flIGHT OF SETOFF. Guerenror greMS ro Lender a contramual security imerest In ell GuereMOrs ewounts with Lentler (wheher checking, aevings, ar
some other account). This includes a0 eaounts Guerenror haltls Jointly wBl someone else end ell accounts Guarantor may open In the future.
llmvever, tMS does not steNrde anY IRA or Keogh accoulris, a arty trust acewnta for which the Brant of a secwlty Interest would be ptohlYbitlatl by Mw.
Guarantor authonzas Lender, to the eMenl pemiHrotl by applicable law, ro hold these tootle it there is a tlefamL end Lender may apply the lands in
Vase accounts ro pay whet Guerenror owes antler the terms of this Guaranty, end, et LendeYS option, ro atlminisrretlvely freeze ell such accounts ro
eUOw Lender to protect Lender's charge and setoff tights Provided ro fib paregmph.
SUBORDINATION OF BDflROWER'S DEBTS TO GUARANTOR. Guarantor agrees that Ne'Indebtatlness of Borrower ro Lentler, whether now
exlsWg ar hereafter created, shall be euperlor ro any claim that Guerenror may now have or hereadar acquire against Bortower, wheher or not
Bortawer becomes insolvem. Guerenror hereby expressly subomineros any claim Guarantor may have agelnet Borrower, upon any account
whatsoever, ro arty claim Nal Leaner rtrey now or hereafter have against Borrower. In Ne event of Insolvency and consequent Iiqultlatian of Ne assets
of Borrower, Through benkmptcy, by en assl~ImeM for Ne beneM of cretlNore, by voluntary IlquMatlal, or otherwise, Ule assem of Borrower applicable
to Ne payment of the clelme of troth Lender arm Guerenor shell be paid fo Lentler and shell be flret applietl by Lentler ro Ute Indebterhecs of Borrower
to Lentler. Guarantor does hereby assign ro Center all claims whkh H may have or acquire against Borower or ageilat any eselgnee ar tmstee M
bankmpicy of Borrower; provltletl however, that such assignment shall be adective Doty for Na purpose of essudnp to Lentler NII payment In legal
tendar of Ne IntleMetlness. If Lentler so requests, any notes a credH agreemeras now M hereeker evidendnB any debts or abli9atlons a<BOrrower ro
Guerenror shall be narked with a legentl that the same are suhJem ro this Guaranty and shall be delWered to Lentler. Guarantor agrees, and Lentler is '
hereby auNorized, In Ne name of Guarantor, from tlme to Ume to ezeclrte entl file Mancing sMroments entl conrinuatlon statements entl ro execute ''
Such other da~~rrppems an~dtl ro take uch oN r a es Lender deans necesaery ar apgraprlare ro pade~ preserve end enMroe Hs dghta antler this
Ouayanry. NorwlYt,stu~c~wi~Ctl~961Hg ~Solengqao nolrVenra~/- C.k i- no-aOCC.ur~e_.e'~ '
ML4CELIANEOU3 PROVISIONS, Thefollowing miscJaUeneous provisions4reapart of dtts Guaranty: t(,yQ,i,L;/Ty mdy RGL4~'F"
Amandmenh. This Guaranty, together wiN any Related Documens, conatltlaes me emlre understanding entl agreement of the parries as ro the ~Ry41- '
medere set forth N Nls Guaanty. No aaemtbn al or amendment ro Nls Guaremy shell be effective unless gNen In wddng entl sipnetl by the party
or games sough ro ba cher9etl or bound by the eHereOon ar amentlmeM'. Ol'1 ~, ~-
Expensea. If Lender Institutes any soft or action is eMoroe-any of the terms of this Guaranty, Lender shell be emNed to recover such sum as Ne p~'
coon may etljutlge reasonable. WheMer or not arty court action q involveq and ro me Bz1aM not prohlbitetl by law, all reaaonahle expenses .f /~h
Lender Incurs that In Lenders opinbn are necessary et any tlme for Ne protacHon of Its Interest or Ne eniorcamem W Its rights shell become a pen 77.. d,,
° of Ne Intlebrednesa payable on demand entl shall beer Interest at Ne Note rote from the date of Ne expenditure untll repeitl. Experees coveretl "~
by this peragreph Include, wlNOUt Ilmilatlon, however subject ro any IlmiLS under eppllcable Iflw, Lentlar's expenses for benkmplcy proceedlrgs °~
(Including efforts to modiry or vacate any aulomatlc stay ar InJunctian), appeals, entl anY anticipated poaPJutlpment collectlan services, to the
extent pertnldetl by applicable law. Guerenror also will pay arty croon coats, in addPoOn ro all other sums provltletl bylaw.
' Captbn Fkadmgs. Captbn headt~s ro this Guarenty are br corrvenience puposes oMy arW are cwt to be used b interpret or define Ne
proNaions of N6 Guamnry.
IMegredon. Guerenor lusher agrees Ne[ Guerenror has reed entl fully untlersterme the terms o/ this Guaranty; Guerenror hea bed Ne,r~u/i,~ -
appOnunlty ro beadvised by GuemmoYS Rdomey with respect to Nis Guerenty; Na Guarenly fully reflects GuareMOrs IMenHOns erld parol '
evltlence ro not requiretl to Interpret the tertps of this Guaranty. Gueremor hereby MtlemnHles entl holds Lentler hamaess from.all losses, claims,
tlemegas, and costs (including Lender's eddmeys' tees) satiated or Incurretl by Lender es a result of any breach by GUarenror of the warranties, '
repreaemadons end agreemens of this par9greph. '
Inlerpretatlan. In all cases where Nere la more then one Borrower or Guerenror, Ulen ell words usetl in this Guaranty In Ne singular shall be
deemed b have been used ro the plurel where the corttexl and conshucdon 5o requie; erW where there Is more than one eorraver named N Nis
Guaranty ar when this Guaranty is executetl by more Nan one Guerenror, the words °BOrtower" entl "GUarenroY respectively shell mean all entl '.
zany one or more of Nem. The words °Guemnror; °Barrower; entl 'Lender' include Ne heirs, successors, assigns, entl trenaferees M each of
"Nam. h a coon finds Nat eery provlslon M Nis Guaranty Is not valid or should not be emoroetl, Net fact by irsell will not mean Nat Ne rest of this
' Guerenry will not be valid or enforoed. Thererore, a coon will enforce the rest of Ne provisions of Nis Guarenry even H e provlslon W Nia Guaranty '
may 6e found ro be invalid pr unenroroeable. If arty orle or more at Borrower or Gueremor ere corporegons, pannerahipa, Ilmiretl liability
companies, or similar entlUes, U is not necessary tw lender tb Inquire Imo Una powers of Borower ar Guarentor or M Ne oHicere, tlirecrore,
pennere, managers, or omer egen4 ecUng ar purponing ro act on Nelr behalf, arm any loan indebletlness matle or crewed In reliance upon the
profeseetl exeroise of such powers shall be guerenteetl antler Nk Guamnry.
Notices. Unless oNervrisa provitled by applicable law, arty notice required ro be given under this 6ueranry shall be given in wming, and shall be -
eHecave when actually tlelivered, when emuMly received by telefacsimile (unless omerwlse required by law), when daposHed wiN a natlonelly
recognized overnight ccutler, or, H mailed, when deposketl in Ne Unitatl States mail, as Slst class, cenifietl ar registered maH postage prepeltl, ,
' directed ro Ne edtlresses shown near the beginning M Nls Guerenry. Any parry may change its atldress for entices under this Guarany by gWMg
tomal wrHten notlce ro the other games, specifying Net Na purpose of Ne notice rs to change Ne party's address. For notice purposes,
Guerenror agrees tc keep LeMer Informed at all limes of Guaranora curtest edtlrass. Unless omenvisa-provided by epplbeble law, if Nere Is
more then one GUareMOr, any nallce gNen by Lender ro any Gueremor is deemed to be nudge given ro ail Guaremors.
No Waiver by Lentlar. Lender shell not 6e tleemed ro have walvetl arty rights antler Nis Guamnry unless such waiver is gWen in writln9 entl
signed by lender. Nc delay or aMSSlon on the part of Lender in ezercisirlg arty tlgM shall operate as a welver rot such fight or any other right A '
waWar by Leaner of a provision of Nis Guerenry shell not prejudice ar constitute a welver of Lender s right omenvise to tlemend ardor compliance ';
wiN Net provlslon a any omer provisos of Nis Guaranty. No poor welver by Lentler, nor any course of dealing between Lander and Guarantor, '
shell canatllute a welver of any of LermaYS rights or of any of Guaantors obligations es ro any future iransactlons. Whenever Ne conaem of '
' Lender b requlretl antler Nia Guerenty, Ne grentlng of such consem by Lender in any instance shall not caatituta cartlnuing consent ro
aubsequeM insterlces where such consent ro required and In ell cases such consent maybe grented or wahheltl in Ne sole discretion of Lender. '
Successors and Assigns. The lama of 1Ms Guaranty shall 6e binding agar Gueremor, and upon Guarantors heirs, Personal representatWes,
successore, and assigns, end shell he enbrceehla by Leaner and Lender's successore end assigns.
Waive Jury. Lender end Guarantor hereby waNe Ne fight to any jury trWl in any acUOn, proceatling, or counreroleim brought by either Lender or
Borower ageirat Na other. '.
LIMRATION OF ACTION. If the Borrower has arty cause of ectlon against Ne Lander, now or in Ne future, arising cut of Ne Related Documents end '-
Na VensecUons wnlempimed by the Related Documens, whether h conbacl w tort or oNerxlse. Ne eercowet must assert Ne claim wiNin one year '
of Ne occurrence of Ne event which gives rise W e cause of action. If Ne Borower does not asses Ne claim wlNin one year of Ne occurence of a
cause of actlan, Na Borrower wHl be bercetl how asserting Ne claim Bartower end Lentler agree Net Ne one year tlme period is reasonable and
aulflcieM fm the BOnawer to Mwestigate and act open the claim arWNetdw provision stall survive any terminatbn of Ne AgreamenL
DEFlNR70N8. The fallowing capltelizetl wows and tame shell have Ne following meanings when usetl in Nis Guaranty. Unless specifically stated ro
file contrary, all references ro tloller amounts shell mean amouras In lawful money of Ne United Stales of Artredca. Wows and tame used in Ne
singular shell irldutle the plural, entl Ne phial shall Inclutle Ne singNer, as Ne context may require. Wows entl terms not otherwise defined in Nis ,
Guerenty shell have rite meanings aHrlbMetl ro such lama In the Uniform Commerolal Code:
-Borrower. The wind "BOrcoweY meals CARLISLE SPORTS EMPORIUM INC., arcJ ell odter persons and endues signng iha Note in whatever
capacity.
Guemnror. The word "Guerenror' means each ant every pereon or entity signing this Guamnry, Including wihout limaaticn KENH PIAS7ERER.
Guaranty. The wom'GUarenry° means Ne guaranty how GuereMOr ro Lentler, InclWing wthout limitation a guerenry of ell or pen of the Note.
IndeMedneas. The word'IntleMednesa' means Borower's Indebtedness m Lentler as more paniculerly described in Nls Guaranty.
Lentler. The word "Lentler' means Unites Bank, a tlW4sian of Flat ConunonwealN Bank, Its successors entl assigns.
Nola. The room °NOIe" means Ne promissory trots dated December 29, 1999, In the original principal amount of 575,000.00 from Borrower to
Lender, togeher wdh ell renewals of, extensions M, motlificedons at, rednencings ot, consotidmiona ol, entl substaulima for Ute pronissory note or
egreemeM~
Related DeeumeMS. The wartls "Related Documens" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guerentles, security agreements, mortgages, tleetls of vast, security deeds, collateral mortgages, entl all omer in/srrumenb, ~
agreements entl documents, whether now or {ryk8+r'aakar exl tin , e eculetl In conneetbn wkh Na Intleyt s dA-d ~j, t'~Wd (L S)~j A'
~nf'n°'cab9~~e~~r~4,0[e~Piio~aaEJ¢wY~~.dre~!' k y
CONFESSION OF JUDGMENT. Guarentor h re srev aumonzes an a ens rty nttomay or l r t cry ar Cler of anY Court in theµ,~rr fJ°.n
CommonweelN M Pennsylvania, or elsewhere, to appear a[ airy rime for Guarantor and, wIN or without complaint flletl, es of any term, confess or enterylg h4 f-0
- - - ~_.~.,_.. w_
!,
COMMERCIAL GUARANTY' Page 3
;(Continued) ,
jutlgmenl against Guarel%or br the entire principal balance of ihla Guaranty end ell accrued Interest, together with costs of sutt, and en eftomay's
commission of ten peroent (te%) of ihaNnpaitl principal balance an accruetl interest for collection, but in any event not less then Frve Huntlred Dollars
($500); antl for so doing, tltis Gueramy;or a copy of gila Guaranty ~erified by afNdevk shall t» sulACient wartant. The authority granted in this Guaranty
to confess judgment against Guerentor shall not be exheuatetl by e~y exercise of thetautlwrity, buf shell continue from time to time end et ell tlmes untll
payment M iNl of eN amounts due under tNe Guaranty. , : ~ _
GUARANTOR ACKNOWLEDGES HAVING HEAD ALL THE' PROVISION' OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO
TfS TERMS. THIS COMMERCIAL GUARANTY IS DATED DECEMBER 29';1999, THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED
THAT THIS GUARANTY IS AND SHALL CONSTRUTE AND HAVETHE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
GUARANTO ~~
HRIf~SP'L~ TER ,Indivl wally
iww..oi.w,w.,,.aueru. o,r. w..,.ow,,=~ren.,o. ~,in.e.+...im. wwn...,.~.... c,w.,,m,vn~.n.a ,.., A.,.w,e..i
~,
«:.
- PROMISSORY NOTE ~~
any perUCUmr ban or Item.
BorrOWer: CApLISLE SPORTS EMPOp1UM INC. (TIN: '- CendeC 'Unites Bank, a tlivlsi0n of First Commonwealth Bank
25-089G988) Dhambereburg Office -
1101LINDHAMCTSTE704 ~ 155oWh MaM'Sbeet
MECMANICSBUpG, PA 17055 ~ PO Box 777
E Chambereburg, PA 17201
:) pt7)z57-me
Principal Amount: $75,000.00 Initial Rate: 9.500°k Date of Note: December 29, 1999
PROMISE TO PAY. CApLISLE SPORTS EMPORIUM INC. ("Borrower°) promises ro pay to Unime Bank, a tlNlslon of Firet DOmmarlWa®Hh Bank
("Lentlar"), or ortler, In lawrul money of the Unltetl Slates of America, the principal amount of Seventy Five Thousantl 8 OON00 Dollaro
(576,090.00), togemer with interest on me unpaid principal balance Irom December 2B, 1999, until peltl In full.
PAYMENT. SubJect to any payment changes resulting from changes In the Intlax, Borrower will pay this loan in 72 payments of 51,375.90 matt
peymerd. Bortower's ttrn payment is tlue January 29, 2000, end all cu Wequant payments are due on the same day of matt month after that.
BortoW9ra float payment will be tlue on December 2B, 2095, antl will be }gr all pNnelltal antl ail accroetl Interest not yet Qaitl. Payments
Include prncipal ant Interest UMess oUreraise agreW or requhad by appecabm law, paymwda wIN be applied Thst to accrwd un7altl
Interest, men to principal, antl any remaining amount to any unpaitl collactlon teats. Tha annual Interest rate for this Nate is computetl'pn e
385/389 balls; mat la, by applying Ue ratio of the annual interest rem over a year of 360 tlaya, multlpliail by the outsmntling prl0dp01 bamntt,
multlplletl by the actual number of tlays the principal balance b outstentling. Borower wilt pay Lentlar m lender's atltlress shown eboJe or et
such other place es Lender may designate in writing.
VARIABLE INTEREST RATE. The Interest rate on this Note Is subject ro chen0e Irom Ume m Ume based on changes In an indepengem intlaz which
Is the highe9t prirtm rate quoted in Ne Well Street Journal (the'Int~az'~. The IntleX m not necessedy 0ta lowest refs chametl by Lender on Ira loena. It
the Intlax becomes unavaaeble tlumlg the term of ihla loan, Lentlar may tlesignele a sabstitute intlez attar make m Borrower. Lender Wlil tell Borrower
Um curteM Index rate upon Borrowers request. The Interest rate change will not Occur more often men each day. Borrower urltleremnda met LerMer
maY make loans based on oNet mma as weU. The Intlex wrtently is BSWY. per annum. The hderwt rate to he appltetl to fife unpaid pHtmipal
balance of mla Note will be at a rate of 1.000 percenmge point over the Index, resulting in an Initlal rate of 9.500% per annum. NOTICE: Under
rw ciroumstencea will the inerest rete on this Note ha more men Ne maximum rem allowed by epplk:able law: Whenever Increases occur m the
Inmrest rate, Lentlar, al its option, may do one or more of the rollowmg: (A) Increase Borrower's peymenm ro ensure Borrower's ban will pay ott by Its
odglrtel final maturity date, (B) Increase Borrowers peymenm ro cover awruing Interes4 (C) increeae Ne number of Borrower's paymens, antl (D)
continue BonOwera paymens attha same amount arM increase Bortowela anal peymem. _
PREPAYMENT. Borower may pay without penalty ell or a portion of the amount owed eedler men it is due. Eedy payments will not, unless egreetl ro
- by Lender In wdWg, relmve eorower Of Borrowers obliBetlon to contlnue ro make paymenm antler Ne payment schedule. Ramer, eeny paymenm will
reduce me pdrlcipel balance tlue antl may result In Borrower's mekin0lewer payments. Borrower agrees no[ ro send Lender payments marked'peld
N fWl°, "wNmnt rewurse', or similar mrguage. R Borrower sends such a Payment, Lender may accept N without bam9 sty of Lender's rlghm antler this
Note, antl Bonrower will remain oMigetetl ro pay any fuMar amount awetl ro Lender. All wriaen communmatlons concerning disputed amounm,
Inclutlln0 erry check or other payment Instrument mat Intlbetes met Ne paymem constltutes "payment in mil' of the emoum awetl a mat la tendered
with omer crontlPoOna or Iimdetlona or as full satisfactlon of a disputetl enwunt must be malletl or tlellvered b: Unites Benk, a division of Flret
Canmonweelth Bank; Chambereburg Office; 15 South Mein Street; PO BOx 777; Ohamberebury, PA 77201.
INTEREST AFTER DEFAULT. Upon default, Including facture to pay upon final mamdty, Lender, at Its Opflon, may, If permittetl under applicable taw,
htcrease Ne vaneble Interest rete on mis Note ro 6.000 percanmge points over Ne Index. The Interest rem wpl not exceed the maximum rate permlttetl
by applcable law. If judgment Is emered in connection wdth Nis Note, Nteresl will continua ro awrue an this Note after judgment at the Inmrest rete
applmeWe m this Note at Ne tlme IudgmeM la enmretl.
DEFAULT. Each of Ne mllowing shell constitute an event al tlemult ('Event of DemuIP9 antler Nis Note:
Payment De/ault Borrower falls to make any payment when due antler Nis Note.
Other Demults. Borrower fails to comply watt or m perbnn any omer lertn, obligation, covenant Or conditlOn conmined In this Note Or In any Of
the remind documents or m comply with w b perform any term, obligation, covenant or coMitbn cOnmined in any other agreement between
Lender antl eortowar. ..
False Statwnenm. Any werrehty, represeMetlon or statement made Or fumlahetl ro Lender by BOnower or on Borrower's behalf antler this Note
or the relatetl dacumems is misa or misleading In any metetlal reepecp eehar now or et the tlme metle or fumiahetl or becomes false or misleading
et any Ume Nereafler.
Insalvmcy. The diseolutlon ar termination of Borowers ezmmnce as a going business, Ne insolvency of Borrower, the appointment of a receiver
far erry pert of Borowers property, any assignment for ND benefit al credkora, any type of cretlimr workout, or the commencement of any
proceetlbg under any bankruproy or Insolvency laws by Or against Bonower.
Creditor a Farteliure Proceetlings. Commencement of torecbsute or todeiture ploceaclbgs, whether by ludbial proceeding, seU-he1P,
reposaeesbn ar any oNer method, by any cretleor of Bortower or by any gOVemmenml agency against any collelerel aecunng the loan. This
incltrcms a gemlehment of arty o7 Bortower's accounm, inclutlinp tleposit accounm, with Lentlar. However, this Event of Default shell not apply if
' Nere is a go0tl faeh dispme by Borrower as mNe valltltty or reasonableness of the claim which is the beset of the cretleor Or fodelture proceeding
end a Borrower gives Leitler wrttten no5ce of the cretlimr or fodelture praceetling end deposes with Lentlar monies or a surety bond for the
credea or rotletture proceeding, in an amount tlemrminetl by Lender, In es sole dmcreilOn, as being en adequate reserve ar bontl for the tlispum.
Events AttecUng Guarantor. Any of Ne precetling evenm Datum with respect ro any GuareMOr m any of the intlebtedness or any Guerenmr tlies
' or becomes kwompeteM, Or revokes Or disputes the velltlity oL or Iieblley under, any guaranty of the Indebtetlneea . In Ne event m a deem,
Lentlar, at es opton, may, but shall not be required to, permtt the Guarantors eemte ro assume uncontllUOrelly the Obliga0ons wising under Iha
BuarantY m a mamter saUSiactay m lender, and, in tlokt9 so, ewe amy EvamoS Detauft.
Change In Ownership. Any change In ownership of twenty-flue percent (25%) or more of Ne common stack of Borrower. ,
Atlverae Change. A materiel adverse change aware in Borowers finenelal conditlon, or Lender believes the prospect 07 payment or
pedortnance of Nis Note m Impaired.
Insecurity. LerMer In goad faeh believes imelf Insecure.
Cure Provlafona. II any default, other than a tlel9ult In payment, m tumble antl N Borower has not been given a notice of a breach of Ne same
provision of Nis Nom wehin Iha precetling N+elve (12) nwnthe, tt may be curetl (end no evem of tlemult will have occurred) if Borrower, attar
receNing wriaen notce horn Lentlar demanding cure of such deleult (7) dares Ne default wlNin fdmen (15) days; or (2) If the cure requlrea
more men akaen (15) days, Immedetely initletea amps which Lentlar tleems in Lenders sde discretlon ro be sutticienl ro cure the tlefeult and
Nereaaer continues and completes all reasonable and necessary snipe auHiclem to produce compliance as soon as reasonably prectlcal. ,
LENDER'S RIGHTS. Upon tleleult Lentlar may, Baer going ouch noGCes ee requiretl by applicable law, tlwlare the entire unpaid principal balance on
Nis Note end all awruetl unpaitl Interest immetlmmly tlue, antl Nan Borower will pay that emoum.
EXPENSES. Ii Lender institutes any sue or action io enforce any al Ne terms of Nis Note, Lender shell be entitled to recover such sum as Ne court
may adjudge reasonable. WheNer or not any court awon Ia imrolvad, antl ro the eMw[ wt prohlbeetl by law, all reasonable expenses Lender Incurs
Nat In Lentleta opinion ere necessary at any tlme br Ne promctlon of im interest Or the enforoemwl of Ira rights shall become a pan of fie loan
payable on tlemand and shall bear Inmrest at the Note rem from the date of Ne experltliture until repaid. Expanses coveretl by then paragraph inclutla,
wkhout 1MMtetbn, nowaver subject m any limits ,radar appibatae law. Lender's expenses for baMCnpmY ixoceetlkgs (iwludkg etbna m motlity or
vacem any etrtometlc smy or InJuncaon), and appeals, ro the exmm petmiaed by applicable law. Borrower also will pay any court cosm, In addition to
ell other sums provMatl by law. ~ '
JURY WAIVER. Lentlar and Borrower hereby waive the tlgM m any Jury trial In any action, proceeding, or counterclaim brought by ekher Lentlar or
BomgWer egenat the omer.
RIGHT OF SETOFF. Borower grenm to Lender a contractual security Imeresl in all Borowers accounm with Lentlar (whether checking, savings, or
some omer eccoun0. This Includes ell accounm Borower Mbs Jointly with someone else antl all accounts Borrower may Opan in Ne future. However,
Nis tloea not inclutla any IRA or Keogh accounts, or any tenet accounm mr which Ne Brent m a security Interest would be prohibited by law. Borrower
auNOdzas LerMer, ro Ne aMant permined by applicable law, ro charge or setoN ell sums owing on the Indebmdness against any antl all such awounis,
end, at Lenders option, lO atlministretively freeze all such accounm to allow Lender m protect Lentlers charge antl soma rights provided in this
,. ..<r
PROM1SSOktY NOTE page 2
(Continued)
pareBreph.
UMITATKIN OF ACTION. If Ma Borrower has any cause of ectlon agakret Nre LeMer, now or M the iNUre, arisbg out of the Related Documents and
Nra transacgma comemplatetl by Me Beletatl Dacumen~, whether in contras or Tod or othenvlse, the Borrower moat eased Me clelm wlMln nna year
of the occurtence of Me event whRh gNea rise to a cause of ecllon. b the Borower doss not eased Me claM within one year of Me aodurence of e
cause of acllon, Nre Bonrower w& be barred kom easerthlg Nre clekn. BoiraWer and Lender agree that Nre one Year time Petiod b reeaorrehle and
sufflclem for the Borrower to Investigate end act upon Me clelm end that fire proviabn shell9urvlve arty terminmlon al Me Agreement
YEAq 2000 PROVISIONS .The Year 2000 Problem has not resulted in, antl wlll not result In a rtwleriel eMersa change to the bueNess, propeMee,
assets, flnenciel condition, results of opereNons or prospects al the Bonrower, end has no[ end will not Impalr materlelly the ablllty of Me Borrower to
dory end puncNelty pay or perform any of ka oMigetlona owed to Me LaMar. From Nme to tlme, wlMin twenty (20) days attar any request by Nra
Lender, tie Borrower shell tlelNer to the Lantler a wlStten report ea re ks compliance eitoda In connection wIM the Year 2000 Problem, M such detail as
the Lender may reasorebley request. In etltlMOn, the Bortower shell, upon any request of the LaMar, permk the LeMer, upon reasonable rxNlCe end
during normal business hours, to meet with Me Borrower's IrlromreNan syslerr3 aM technologies employees enNor outside provklere, m tliscaea Me
stelae of the Bortowels compliance eflods in connection wkh the'Year 2000 Prahlam end Me actual aM araipipated cook Mereof. The Borrower abaft
take aNactlon necessary to insure Me computerbesM systems utllize0 by the eonower are able ro effectively process data end pertonn fulrofions,
including witlrom IlmNetbn es to tletea on or after December 31, 1998, such Met rw meterlel adverse change to Me Borrowers bualnesa, propemes,
assets, iklarwiel condition, results at opertetlons m prospects wAl esuU. Por purposes of ihN provisWn, "Year 2000 Pro61am' means the rlak Mat
wmputer applketlons used by or for the banelk of Me Hofrower may be unable to recoginze or property perform datasensitlve functions Involving
certain tletea prior to, antl any date otter, December 37, 1899.
LATE CHARGE. A Ia[e drOr9e wfi be assessed In Me emoum 015% of Me regular paymem or parYron Mereot that remalna unpeW br nrore than ten
(70) days 6eyantl the tlue tlefe. The minimum late charge artrount Is $25.00. Thla charge will 6e Immediately due aM payable.
QENERAL PROVLSONS. Lender IraY de1sY or forgo entaming anY of Ile rlgMS w remedies under Nos Nola wiMad being them. Borrower aM any
oMer parson who signs, guarentees or endorsee Mis Note, to Me extent allowetl by law, weNe preaentmenl, demand for peymem, antl rwtke of
dlahenor. Upon any change in Me terms of Mie Note, end unless otherwise expressly slated in wrimlg, no perry who signs Mle Ndte, wheMer as maker,
gueremrn, Mellon maker or andolser, aheN he relessad from UebNily. All ouch pelves agree Nlflt lender maY renew ar extend (repeatedly and
br am' IengM of Nme) Mk loan or release any party rn guerentor rn collateral; or impelr, fail b realize upon,or perfect Lender's seeudly Interest in Ma
ccllateal; and take efry other action deemed necessary M Lentler wiMOm Me consent of or nodce ro anyone. NI such pelves also spree Mat Lerner
may matlity Mie loan wkhout the consent of or nmlce ro erryone other then Me party wNh whom the motlNlcetion Is made. The otdigadons under Mie
Note are Joint and several. II any portbn of Mie Note le for any reason~peterminetl to be unenforceable, N will not a oo~~ Me e~nfarcee611ity of any oN~er
Provlalona of Mls NOro. open era}der ~OLLf1PPP-at(Q~'~a.~Euw-1'e•~rffe~(u~l.l-~'saR o-por-~l`~>~.
CONFESSION OF JUDGMENT. Borrowerh~eby Irrevocebty authorizes antl empowers any anamey or Me ~Monotary or Clerk of arty Coudam'mal(WIbY~
ComrtronweelM of Pennsylvania, or elsewhere,ro appear W any tlme for Borrower aM, wkh or without complelnt filetl, as of any term, aonlesa or enter turf
judgment agelnst Borrower for Me entire principal 6elence at [his Note eM ell accrued Interest, MgeMer wIM costa of suN, antl en attorneys ha{ldp,
commisalon of ten peroem (10%) ai Me unpeld pdnclpa) balance antl accroed imereet for coOepNOn, but in any event not lase Man Pive HuMred Dotiere
($500); antl for so tloing, Mis Note or a copy of Mls Note verReO by aNltlevk shell be sulHClem wanent The auMwlty gremed In Mis Nola to confess /0
judgmem against ewrovrer shall not 6a exhausted by any exeroise of Met euMoriry, but aheti canWUe from time to Nme eM et ell times until payment in n,x~r
lull d all amourAS due uMer ihls Note. ~t~N~t-
PRIOR TO SIGNING THIS NOTE, BORROWER READ ANO UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIA
alTEREST RATE PROVISIONS. BORROWER AGREES TOTHETF31M3 OF THE NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PRORaSSORY NOTE Pea
THIS NOTE iS GNEN UNDER SEAL ANO IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTAUTE AND HAVE THE EFFECT OF A f n,kd
SEALED INSTRUMENT ACCOADIN6 TO LAW. -
BORROWER:
CARLN+L itlMiNtti
K PL.A~ST2RER,- Pra9-ftlentof ~AELISLE
SPORTS EMPONUM WC.
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