HomeMy WebLinkAbout05-1920
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A.,
Plaintiff
No. ot; - 1 q;)()
Ci oct ~0Li-Y\
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE,
Defendant
NOTICE OF JUDGMENT
TO: Tim R. Sprinkle
8 Reynolds Street
Mechanicsburg, PA 17055
You are hereby notified that on APRIL 14, 2005, Judgment by Confession was
entered against you, the Defendant, TIM R. SPRINKLE, and in favor of the Plaintiff,
CITIZENS BANK OF PENNSYLVANIA, ASSIGNEE OF MELLON BANK, N.A., for the
following amounts due and owing under the "Guaranty and Suretyship Agreement" dated
July 16, 1999 attached as Exhibit "B" to the Complaint which was filed in the above
captioned matter pursuant to the warrant of attorney contained the "Guaranty and
Suretyship Agreement" dated July 16, 1999 attached as Exhibit "B" in the to the
Complaint which was filed in the above captioned matter, plus costs of suit:
PRINCIPAL $17,310.19
INTEREST TO APRIL 14, 2005 $899.76
LATE CHARGES $25.00
LEGAL FEES -20% $3,462.04
TOTAL $21,696.99
DATED: APRIL 14, 2005
KAIN, BROWN & ROBERTS LLP
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(~Y:_~-J~C:~~ESqUire
119 East Market Street
York, PA 17401
1.0.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, N.A
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A.,
Plaintiff
No. OS - N~
CI-uL~0Ll
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE,
Defendant
CONFESSION OF JUDGMENT
Pursuant to the warrant of attorney and the authority contained in the confession
of judgment clause contained the "Guaranty and Suretyship Agreement" dated July 16,
1999 attached as Exhibit "B" to the Complaint which was filed in the above captioned
matter, I, Jack F. Ream, Esquire, appear for Defendant, TIM R. SPRINKLE, and confess
judgment in favor of the Plaintiff, CITIZENS BANK OF PENNSYLVANIA, ASSIGNEE
OF MEllON BANK, N.A., and against TIM R. SPRINKLE, as Defendant, for the
following amounts due and owing under the "Guaranty and Suretyship Agreement"
dated July 16, 1999 attached as Exhibit "B" to the Complaint which was filed in the
above captioned matter, plus costs of suit:
PRINCIPAL $17,310.19
INTEREST TO APRIL 14, 2005 $899.76
LATE CHARGES $25.00
LEGAL FEES -20% $3,462.04
TOTAL $21,696.99
DATED: APRIL 14, 2005
KAIN, BROWN & ROBERTS LLP
BY:JaC~~SqUire
119 East Market Street
York, PA 17401
I.D.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, NA
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA.
ASSIGNEE OF MELLON BANK, N.A.,
Plaintiff
No. OS- - I<f~D
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e.u,ll~
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE.
Defendant
COMPLAINT
1. The PLAINTIFF is CITIZENS BANK OF PENNSYLVANIA, ASSIGNEE
OF MEllON BANK, N.A., a national banking corporation organized and existing under
the laws of the United States of America, with one of its principal places of business at
525 William Penn Place, Pittsburgh, Allegheny County, Commonwealth of Pennsylvania
15259, and hereinafter sometimes referred to as "Bank" and/or "Plaintiff'.
2. The DEFENDANT is TIM R. SPRINKLE, an adult male individual with his
principal place of business at 8 Reynolds Street, Mechanicsburg. Cumberland County,
Commonwealth of Pennsylvania 17109, and hereinafter sometimes referred as
"Defendant".
3. On or about July 16, 1999, Mellon Bank, N.A., assignor of Citizens Bank
of Pennsylvania. extended to Mechanicsburg Sports Car Center, Inc., a corporation
organized and existing under the laws of the State of Delaware and doing business in
the Commonwealth of Pennsylvania, a credit facility in the form of a line of credit in the
amount of $20,000.00.
4. To evidence the liability of Mechanicsburg Sports Car Center, Inc. to
Mellon Bank, N.A., assignor of Citizens Bank of Pennsylvania, for the credit facility of
$20,000.00 referred to in Averment 3 hereof, on or about July 161999, Mechanicsburg
Sports Car Center, Inc., as obligor, executed a "Note and Line of Credit Agreement" for
the face amount of $20,000.00 in favor of Mellon Bank, N.A.' assignor of Citizens Bank
of Pennsylvania, as obligee.
5. Attached hereto, marked Exhibit "A" and incorporated herein by
reference thereto is a true and correct copy of the "Note and Line of Credit Agreement"
for the face amount of $20,000.00, dated July 16, 1999 executed by Mechanicsburg
Sports Car Center, Inc., as obligor, in favor of Mellon Bank, N.A., assignor of Citizens
Bank of Pennsylvania, as obligee.
6. To secure and to collateralize the liability of Mechanicsburg Sports Car
Center, Inc. to Plaintiff on account of the "Note and Line of Credit Agreement" for the
face amount of $20,000.00, dated July 16,1999 (Exhibit "A"), on July 16,1999,
Defendant executed "Guaranty and Suretyship Agreement".
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7. Attached hereto, marked Exhibit "8" and incorporated herein by reference
thereto is a true and correct copy of the "Guaranty and Suretyship Agreement" dated
July 16, 1999 executed by Defendant.
8. The "Guaranty and Suretyship Agreement" (Exhibit "8") contains a
confession of judgment clause.
9. The confession of judgment clause contained in the "Guaranty and
Suretyship Agreement" (Exhibit "8") permits the confession of judgment at any time,
before or after default.
10. No judgment has been confessed on the "Guaranty and Suretyship
Agreement" (Exhibit "8") in this jurisdiction or in any jurisdiction.
11. Citizens 8ank of Pennsylvania acquired from Mellon 8ank. N.A. the loan
referred to in Averment 3 hereof, along with the "Note and Line of Credit Agreement"
(Exhibit "A") and the "Guaranty and Suretyship Agreement" (Exhibit "8").
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12. Except for the assignment referred to in Averment 11 hereof. there has
been no other assignment, endorsement and/or transfer of the "Note and Line of Credit
Agreement" (Exhibit "A") and the "Guaranty and Suretyship Agreement" (Exhibit "8").
13. 8ank is the holder of the "Note and Line of Credit Agreement" (Exhibit
"A") and the "Guaranty and Suretyship Agreement" (Exhibit "8") and is the real party in
interest.
14. The obligation upon which judgment is being confessed, being the
"Guaranty and Suretyship Agreement" (Exhibit "8") does not constitute a consumer
credit transaction as that term is defined in Rule 2950 of Pennsylvania Rules of Civil
Procedure.
15. Pursuant to the express provisions and terms of the "Note and Line of
Credit Agreement" (Exhibit "A"). all principal, interest and late charges owed Bank by of
Mechanicsburg Sports Car Center. Inc. was due and payable in full on or before July 15,
2004 without demand or notice to Mechanicsburg Sports Car Center, Inc. and/or
Defendant.
16 In addition to Averment 15. Mechanicsburg Sports Car Center. Inc. has
not paid any interest on account of the outstanding principal balance due on the "Note
and Line of Credit Agreement" (Exhibit "A") since August 2004.
17. Additionally. on or about April 6. 2005. 8ank issued to Defendant and to
Mechanicsburg Sports Car Center, Inc. a written demand and notice that if the full
amount due and owing on the "Note and Line of Credit Agreement" (Exhibit "A") and on
the "Guaranty and Suretyship Agreement" (Exhibit "S") was not paid by April 13, 2005.
8ank would confess judgment against Defendant on the "Guaranty and Suretyship
Agreement" (Exhibit "8").
18. Attached hereto. marked Exhibit "C" and incorporate herein by reference
thereto is a true and correct of copy of the demand and notice referred to in Averment 17
of the Complaint.
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19. Neither Defendant nor Mechanicsburg Sports Car Center, Inc. has made
payment in full to Bank of all amounts due and owing on account of the "Note and Line
of Credit Agreement" (Exhibit "A") by April 13, 2005.
20. The failure of Mechanicsburg Sports Car Center, Inc. to pay amounts due
under the "Note and Line of Credit Agreement (Exhibit "A") in full on the due date, being
July 15, 2004, to make monthly payments of interest on the "Note and Line of Credit
Agreement" (Exhibit 'A") since August of 2004 and to pay all amounts due under the
"Note and Line of Credit Agreement" (Exhibit "A") in full by April 13, 2005 constitute
defaults by Mechanicsburg Sports Car Center, Inc. under the "Note and Line of Credit
Agreement' (Exhibit "A").
21. Pursuant to the terms of the "Guaranty and Suretyship Agreement"
(Exhibit "B"), upon a default by Mechanicsburg Sports Car Center, Inc. under the "Note
and Security Agreement" (Exhibit "A"), all amounts are immediately due and owing by
Defendant under the "Guaranty and Suretyship Agreement" (Exhibit "B").
22. All amounts due by Defendant to Bank under the "Guaranty and
Suretyship Agreement" (Exhibit "B") are now due and payable in full.
23. As of April 14, 2005, the following amounts are due and owing by
Defendant on account his liability to Sank under the "Guaranty and Suretyship
Agreement" (Exhibit "S") wherein Defendant guarantied the obligations of
Mechanicsburg Sports Car Center, Inc. under the "Note and Line of Credit Agreement"
(Exhibit "A"):
PRINCIPAL $17,310.19
INTEREST TO APRIL 14, 2005 $899.76
LATE CHARGES $25.00
TOTAL $18,234.95
24. In addition, to the amounts owed as set forth in Averment 23 hereof, the
"Guaranty and Suretyship Agreement" (Exhibit "S") provides for legal fees in the amount
of 20% of the amount of principal, which is $17,310.19, with legal fees requested of
$3,462.04.
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WHEREFORE, the PLAINTIFF, CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A., prays Your Honorable Court for a judgment by
confession in favor of the PLAINTIFF, CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A., and against the DEFENDANT, TIM R.
SPRINKLE, pursuant to the warrant of attorney contained in the "Guaranty and
Suretyship Agreement" dated July 16, 1999 attached as Exhibit "S" to the Complaint for
the following amounts due and owing under the "Guaranty and Suretyship Agreement"
dated July 16, 1999 attached as Exhibit "S" to the Complaint which was filed in the
above captioned matter along with costs of suit:
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PRINCIPAL $17,310.19
INTEREST TO APRIL 14, 2005 $899.76
LATE CHARGES $25.00
LEGAL FEES -20% $3,462.04
TOTAL $21,696.99
DATED: APRIL 14, 2005
KAIN, BROWN & ROBERTS LLP
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'--- Jack F. Ream, Esquire
119 East Market Street
York, PA 17401
1.0.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, NA
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COMMONWEALTH OF PENNSYLVANIA
SS:
COUNTY OF YORK
Before me, a Notary Public, in and for the said County
and State, personally appeared Judi Gimigliano, who, being duly
sworn according to law, doth depose and say that she is a Banking
Officer with Citizens Bank of Pennsylvania, a banking corporation
organized and existing under the laws of the Cormnonweal th of
Pennsylvania, and that as such officer is authorized to make this
Affidavit on behalf of Citizens Bank of Pennsylvania, and that the
facts set forth in the foregoing document are true and correct to
the best of her knowledge, information and belief.
Citizens Bank of Pennsylvania
EAL)
Sworn and Subscribed to
before me this
13th
day
of
April
, 2005.
NOTNIIAL SUoL
\JNOA M. WOLF. MOTNf't PUeUC
CITY OF YOFll<, YORK COUN1Y
,., r!l'.MSS1llN EXPIRES MAY 22. 2007
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EXHIBIT "A"
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Note and Line of Credit Agreement
/1<' C.harJ ItS ro\! (5 0pCl't.s L'llv Ce:'fl-te\' l II'l C- 10/-32/- J'U3
@ MeIlQnBQoK.
111lCreSl al Cl nlle per annum which is t;~
ahove Bank's Prime Rme, such rate Iu change from lime 10 lime i:lS
01" tIle effective (late or each anlluunccd cllange ill such Prime Rate,
shall be paId when princlf11JI payments are due. PrinCipal shall be paid
III consecutive 1110111hl)' inslalJmClllS equal 10 I/_Ih of
Ihe principal halance hereof outstanding 011 the Billing Dale.
commencing on and c0l11inuIJ1g thereafter on the
d.ay of each 111omh; pruvided, however, Lhat each monthly
insl<1llmcl1l of principal will be no less lh,lIl $100.00, and providec.i
further lhm the <lmoun\ of lhe lTIonlhly, inSlallmelll or f1rincipal shall
never exceed lhe ,1J)10UJ)l uf pnncipal actually outstanding. The entire
Ilalance of the indehlet1ness, if 110\ ~()Dncr paid, shan he due anti
payable on (lhe day or each mon[h un which
pnnclpel! anc.1/or interest s.!l<l!l he !"-rellt\' ,)\ lk"cnhed <lllllVC, IS Ihe "J)ue
I)ellc".)
1:,<lc11 hl))TllWIIl~ will USUclllv IlL" pi"llCCSSl'd (lll [he Sclllll' d;l\' Ilnl r-r;:; Q
)r<l1l."\cr JIlSlr'UCI'i()rl\ were ~ivcn \'lclll1e Busllless B;1I1~1I1~ Iclcplllllll" [XlJ Ie " ..J
(Ill' I )uc I )~lIC_
EXHIBIT "A"
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20,000.00
Promise To Pay. FOR VALCE RECEIVED, and Intendlllg La be legally
hound, UnderSigned, as ddineli Lielow, promises [0 pay 10:
Mellon Bank, N,A.
("Bank") or ilS order a[
Harrisburq, Pennsylvania
Ihe sum or
Twenty Thousand and 00/100
Dollcl(S ($ 20,000.00 ), llr SI.H.:ll lesst:r l1l
greater pnncipal amuunt as IT\::\Y be uUIS\;mL1111g lrmn llllle III lllne
under [he line or (fedll ("I_Hll' or CrelJit") cS[;lh!ts!lcd hL'rl'Lllllkr 11Y
Hank for [he hencfil olllndersignclI, wi\11Inleres\ un \he ()UIS1(lnl\lll~
hcilall<..:e [mill Ihe dale' llf IlllS N{}le ,lIll1 1.l1ll: uf CredJl /\grecmcnl
("No[e") a[ Ille rclll'{s) ("CtlnlnlClual Rmc(s)") and In ,1l':l:urllance
with the repayment schedule spcciflccll")eIO\\
Borrowing Money. (Please read carefully.) From the delle hereor
10 hUI Illll incluejing 07 /15/2004 ([Ill' "Mcltumy Dme").
llnlkrsigncd m;'l}' htlrnl\\' IlltlllCY fnl1ll Bclllk [llrough lhe l.lIle or
('red!!. up III [hl' <l1l10Ulll S11llWIl elhove, [iy using Mellon Helllk\
HuslIlcss H<lIlklng Tckphllne I lo[linc Il) access Un<.1ersigncej's r .JIle or
Credit and [ll transfer lunl1s [0 UnderSIgned's eiesigmlled Mellnn
Checking Accuunl.
Subll,.cCI III rules amI rcgul,nions cs[ahlisllccl hy Bank l'rum lime tu
lime, Unckrslgncll m.l)' also horrow IllDney [mill Bank l1Y usmg WCll
lllllcr me::lns. it' any, (IS Hank Ill,))' pnwllit' for 111,][ purposc. Ilank
reserves [he right 10 cJl.lIlge or elil1limllc, withuu[ nUlicc, Clny nlC"lns
11Y which Undersigned n)<:\y l10rmw IhrIJuglllht Line of Credit and [ll
eSlahlish new Illeans hy wlllCl1 Undersigned may horrow.
Ilndcrsigne<.1 may not usc horrowings to make p~)'menls l1ue unlier
lhe rille (If C,.l'L1l1 or uthL'J" InLlehlCcJncss in favor or Ilank.
l Jndcr'sl!llll'LI dUt!)\lITll'.'i ~Ind dIrects IJ;'lnk 10 Llepo....1l hllrruwings from
t Imkrsl;ncL1\ I .Ine Dr (:rcLlil m[ll Mellon (:heckl!l~ ^CCtlUlll Numher
t>O:" - 7 - 0 ,[itlec.1l11 [he Jlalllc('~) 01
l! S ," rt ~.. e. e. l
llml<:!'sigllcc.I undCrS[CiIl "Illc.l .lgrces Ih<11, if ,illY pl'rStlll m I.'nllly IS
au[honzed 10 ....i~n llJl llr l)[lll'rWlsc use Llndersl!lllccJ\ cJCSI!lll;l[l'll
Mellnn Chccklllg~ ^CL"IlUIlI Dr <lilY Lkp(blL ctlecl.;.mg~m crl'cJlI ,-l~.L"lIUlll
11IlkecJ wllll llndl'rSI!l1lL'lI\ lleSI!lIl<JlL'd Ml'llol1 ChlTkin!l t\CL"llun[
Ihmugh \~'lllk-hy-I)lll;nL' or l3usiIlcss B,lllk-lly-l)honL', sudl pcrsllll ur
ell[lly is also au[hur!zed to !)OITOW Illuney through lhe r .ine of Crcc.1Jl
hy the Business Brlllking Tc:lcphonc llo[jine Unllcrsignccl further
L1lltkrSl<lllL!s :md clgn:es [h;-Il lIndcrsignecl IllUSI repa)' all ;'IJlloun[s
hllrrtlwcd 11Y SUl'h j)...=rs,m(s) \.11" \.TIIl1ytics) as IllUUgh Undersigned h,l(i
htlrrll\VcJ _'-ul'll !llonL'Y. LJndcrslgnel1 ulllkrslam1s [hi:11 Bank, upun
l]lltkrslgn...=u"s written request, will exclutie any of Unl1ersigned's
Mellon Bank clCCULHlIS from Hank-by-Phone or Business 0
Hank+hy-Phonc._ Clm11t is n:;Wlllmenlk(1111.\\ LJnc.1ersigneU make SUcll
request If necc.<,sC11)' for [he pro[ec[iun (IlKI .'ieCUril)' of LJn(iersigncd\
"Iccounts.
H Bank illlow\ hormwlIlgs ,1hllV!: the ,llllount ShllWl1 ahuv\:. <Ill I\")\.'
lL:rlllS of' Illis Nllle will <Iprly III 111O:-;e hurrowing"" Hy sJgnlng lhls
No[e, tJnl1ersigncd IH:n:hy ITLjUCSIS B;-IJ1k [0 p<:rlllil IjlC hmruwing uf
Illoncv thnlLl!lll IJllllc.T'ii!lnclh I.int:' of Cre:ciil 11\, llle: Lise of Me:llnn
Hem).::, HUSII1~'SS nimking Tch.'pllnnc Ilu[linc cl;lCI elgrccs lhm such
hllIT()will!.!\ Ill.l\' !)e cflee[cd Iw (lI1C plT"illll, evcn IJ <1m' ~)!!ITCJllenl.
slglldlurcL l';lrc.l. IIl\lruclltlll,<' l);. IT\lllu[I()Jl\ i"lJr [he J.I;ll: :)1 C:reclil
)XllVILlc I()I IlllIT(l\\"jIlg\ (l\'Cr IWll slgll,11un:s Dr lllllcr speCIal
,IITclllgCIllCIlls_
D(lle
07/16/1999
Hotline, and be available in lhe deslgnmed Mellon Checking Account
on the first business day fo\\o\\'ing the day thal transfer Instructions
were given via the Business Banking Telephone Hotline; however,
Bank reserves the right to not make 3 borrowing available 111 the
designated Mellon Checking ACCOunt umil a date after lhe business
d(lY following lhe day lhal lransrer llls\ruClions were given. For
example, if transfer inslrucllolls are given on Monday, lhe borrowing
Will Ill)fIl1ally he ,-lVailclhlc :n LJnc.1ersl)~neu's lks\gnalcll Mcllon
CllL'cklllg Account llll TUL'sd,iV: !lU\,:cvcr, Ij,l11).: rL'serves [he right [ll
nOI mclkc lhe bUITtlwlng <I\';III,lhlc UIl[iI Wcdnl..:sLlay, or l<Her. (Tl1i:)
I:;;clmplc assumes [hll[ M()IllI;I~'. TUL'slid)' and WednesdclY were all
huslIless d8)'S. Salurdi:l)'s, SUJl(];IYS, i:lnd elll)' Illllidays ur Olher liays on
which Hank IS genenlll~J 1ll)1 (lpen I()f husiness will Jl(1l he considered
husiness days.)
Undersigned 8grees thai Bank may, at llS option, record lelephone
calls made 10 effect a borrowlIH! from lhe Line of Credit. Bank wil!
nO! be liable for acting in gO'Od faith upon telephone orders or
requests which Bank believes in iLs sole dIscretion were I1mde or
aUlhorized by Underslgnec.1. 13ank will be ellLillellto presume lhcJ! all
telephone Callers whn an;-urcllely identify Un<.1ersigned's Line or
Credit accounl number ClI1(1the designmed Mellon Checklllg ACL'OUnl
number are authonzed \0 conduct the trwlsclCtillns described in thLs
Nllle, even ir [he desigmllec.1 Mellon Cllccking Accoun[ and/or allY
horrO\vlllg authorization ur rcsohHlon proVides for any c()vere(1 action
tll lie made by more than one person elcling together, or ror Olher
special arrangements. Underslgnc(j agree5 Ihm thi5 NOle amends any
olher agreel11elll, lIlstrucllon, resolutlon or aUlhorizarion of
UnderSIgned requiring more than one person lO act wilh regard In
Lhe Line of Credll Or lhe designaled Mellon Checking ACCQul1l or any
other (lCCOunl linked [0 either Lhe Line of Credit or Lht deslgmHed
Mellon Checking Account. Undersigned further agrees that Lhis No[e
amends (and will be deemed [0 overril1c) any sueh agreemel1\.
IIlStructlon, resolu[iDll nf clUlhorizCIllon 1l11l{.1e Dr givc:n hv
LJn<.iersignell in [he fulure as sweh clgreelllenL inS[rUCliLlll, resulutin;l
m aUlhnrizmioll wl)uld tllheIV'lsc rcla[e In lhis Nt)[c unks,,,, [hal
a~rcellleJ11. inS[rUCIIOll, r.cso!ullllll or i:llllhol"l;t.,lllllll IS received hv
li;ll1k anli sj)ecillc<ll\y lIl11It.:<:lte.\ [11<11 II IS InlL'nucd [ll lll11dil)' [hIS No[~.
1\11 Icleptl(1I1L' IllSlrue[IUll." L'Xl'l'ulec.J h)' Hi:l1lk !Il gUtKI faith and in
;\CCl\rc.!am:e \....\\11 Ihe pruct.:"Llurc dcserrhcLl ;lhll\'L" will he hmL1ing Upllll
l Jnder.'\i~lled.
NotwllhsLalll1ing any l)[hl:r pruvision uf this NlJIe, Um.1ersigned's
<lbllity LO borrow money from Bank Ihrough lhe Line of Credit shall
not be effective until <In authorizccl rcpresemmive of Bank has signec1
[his Note to evidence Bank's approval of lhe l,ine of Credil.
Contractual Rate(s); Repayment Schedules.
Till' IlJllln~ !):ilL' ",11,111 hL' I\wl\'l' (12) c.JdY~ hc!(l)"l'
P,I)!C 1 lJJ"(l
":c{fi;
the Due Dale.
The Billing Dale shall be ~ d8YS before
The prmcipal balance hereof together with all
crued and unpaid interesl, shall be paid on 07/15/2004,
and interest at a rale per annum which is ~o/r Clbove Rank's
Prime Rate. such rale to ch,lIlge from 11l11e \0 lime 8S o( the
effecLive time of e8ch <lnnmlllccd ch.?lI1gc in ~lIch Prime Rate. Sh81\
he paid on Lhe 15TH d~lY o( each month commencing on
08/15/1999
D The principal halancc hereof, tOgether wiLh all
accrued and unpaid !nltreS!, sha11 he paid On
and Inleres! at 8 rate per annum which is % above lhe
CD Rate, such race to change from lime to lime as of the effeclive
dale of each change in or reselling of Ihe CD Rate, shall be paid on
the _ day of each Illon!h commencll1g on
o In no evenl shall Ihe T<-l!C charged on Ihjs Nflle cxCeCt11he lesser ll!
0( per <l1lllUITl Dr the hlghesl r"ltc rcrllliltct1 hY,lrrllC<lhle
law.
lJnt1erslgnCt1 agrees thell B<lnk 11l,1~'. ;'It Its DJ1111m. renew' Dr exlend
the I.ine of' Creelll hy sending Dr elel1venng I1ll\lCl' of sueh renewal
or t;XlcnSHm to lI11l1crslgncl1. Such notIce shall set Forth <l new
Mmurity l)me for the Line of Credit and ,lilY Olher changes to the
terms and condlllons of the J.ine of Credit. Except as specified 111
such notice, all lerms, conditIons and provisions of this Note shall
remain unchanged. UnderSIgned further agrees that Undersigned
will be deemed to have accepted such renewal or extension if
Undersigned (3) borrows money under the Line of Credit after the
Maturity Dare thm was in effect prior to such renewal or extension,
(b) makes any payments due under the Line of Credit after the
Maturity Dme thar was in effect prior to such renewal or extension
(other th<lll paymenl in full of all inclehledness due under lhe I jne
of Crediq, or (c) otherwise I"ails 10 nOlify Hank in wrlling Ihal
Undersigned declines or rejecls such renew,,) I or extension Wll hin
Ihiny (.10) day~ afler Bank sends or delivers nO!JCC of renewal or
extemmm.
lJnt1cr~ignet1 shall pelY Bank concurrenlly with the execution and
delivery hereof, or UnderSIgned previously has paid Bank, an
ongination fee of $ 200.00, which includes the rirsl
year's annual servicing fce for the J jne of CrediL and a fee 10
compensate Bank for ItS underwriLing, origination and
administratlon of lhe I.me of Credil. The origination fee shall hc
deemed fully c8fnetl hy Rank on Ihe limc hereof". [n Htitinioll.
Undersigned will pay Bank an <lnnUell servlcmg fee III
$ 50.00 payahfe 111 elt1vance, nil or after e1:lch
anniversary of lhe dale hcrcof, to cnl11pcnsatc B<lIlk for its sC[,\/lCin!.!
and admmislrminn or the r .inc or Credit. The fecs tlescrrhed III thf~
pm<lgmrh shall nOl he rdulll1ctl and "Ire In addition 10 ;.1I1V other
fees. COi'its or cxrcn,<;cs whIch may he (Juc and payahle hcreun'dcr.
Unlc.ts Undersigned has aUlhorized Bank 10 lake payments oU! of
a Mellon Checkmg Account, as set forth below, Undersigned will
majJ or deliver 10 Bank the amount billed by Bank each month.
Undersigned will mail or deliver the payments so that Bank
receives all payments no later than the due dates shown on the bills.
~ v[L, S Un.rtersi.gnerj 8uthorizes Bcll1k La l<lke all
. ,'.'. ...-,'f
payments of prmcipal anO;'.1I' ':';.;resl and/or other amounts due
under lhis Note oul (j, undersigned's Mellon Checking Account
~}llb r~- ,titled inlhe n8Ille(,) of
rne '
nn or after Ihc t1ue . each mOnlh. Undersigned win keep ,1
suffiCient halancc 111 lhl.\ aCCOUnl 10 cover the full 8mOunts of all
reqUired paYlllell1s. ^l Its opllon, Bank may rerminace
Undersigned's ahihry 10 use this service. This authorization shall
rcmmn in effecl Wllil revoked hy Undersigned m writing or umil
lhe Line of Credll IS paid in full ,1l1Cllerlllinated or until Bank h8S
lermmalecl Undersigned'.~ ahllity 10 use Ihis serl/ice, as the case may
he. Prior (0 malUm)', while Ihi.'i (lUI!lor;l.<-IlIon is m clTec! and pnl\'ldetJ
lhal Undersigned keeps e1 suffiCIent h"iI;'lIlce ill thiS account to COVer the
full W1KlllrllS or ail required paymen1.". lilc (:O!1)f(lClual R(1Je(~) shaJJ he
reduced hy O.2~('i; per ClIlIlUI1l. This (luthOflj.<llI[)ll will he effective evcn
Ihough lhl\ NOlc Clnd Ihe accounl may he lilJcd III dJlTcrcnl veC<:'JOI1S oj
LJndersig.ned's ll"l11lC.
H lhc orlg11l,ll rnncipcll amount l)r thIS NOll' SllllWll "lhovc IS in excess or
S IO.I)O().OO. or If llndcrsigned 1.<;' ,,1 corpor"llllln. l1ltereSI shall he
c"llcul,l1et1 OIl the h"lSIS of Cl l60-day ytar and aClual days elapsed. rr Ihe
ongmn) prmClp(lJ (1Il1llunt 01" lhis NOlC shown ,,1 hove is 5; Ifl,OOO.OO. or
less. and UnderSigned IS nOI ,,1 c(]rp{)nllinn. Intercst shall he C<-llcul,lled
on lhc ha<';ls nf a .l6S.dCl)' YC<lr or .)66-d,l~ yc,lr. ,,1S the case m<IY he. <lIltl
<Iclllal (l<lYS elapsed.
"Prime R<Jle" shall mean lhe Inlerest rale rer annum announced from
lime In time hv Bank as ilS Primc l-<"lIe The Primc Rme 1ll(lV he
~rc(llu or ICSS'lh,lIl other 11llCres! r<lleS ch"lr~ed hy H"l1lk to (;ther
hmrl)\\,ers <Inti IS n(1l solcly h"lscd m tlepent1cllt upon lhc l!ltnesl rail'
"llIC)l I~allk nl<l~' l'll'lr~l' ~lny 11<-11'\ Icul;ll. h( 11T! lwcr (lr cl~ls~ ! 11 h( )rn )\.vcrs
1I ,I .\lil!.!1c CCrllrlC<llC Ill' tle["lns1\ is held hv ();lIlk as c(}f!"l1craf sccurllv for
lllC lIld~hIC(1ne:-is cvidenccl1 hy thIS NllIC, as more rully dcscrihcd II; lhe
Asslgnmelll or f)epDSIt I\cenunl expressly rcfernllg 10 IhlS NOle. "CD
R"lIC" Sh,llllllcan the Interest nlll' rmt1 hy Hank Illl such cCrllficatc or
l1cposil (lhe ..C:CrllfiC"He"j. smd CD RillC In he rcsel hv nnnk e11 each
rcnewal or Ihe Ccnifieale. If lll(lre than [me CCrllCic<lle lli' t1cP(}Slt IS heltl
11y Bank as collateml securily for lhe Illdehledne,~s evidenced hI' Ihl.~
N01e, as more fully descrihed in the Assignlllem{~) of Deposil expressly
referring to this NOle, "CD Rale" .~hal! mean Ihe highesl of lhc illlcresl
rates raid hy Bank on such certificates of deposit (Ihe "CCrllflCalcs").
said CD Hale 10 De rCsel al each rencWilJ of each C:crlific<lle.
Late Charge If <my J1clymcnl (olher lh<1Il lht' rinal J1,lymcnl) I~ nul
rClid wilhin l.'i calem1C1r clays afler it IS duc, LJnL1ersignCtl will P"IY a laic
chargc or the grealcr of $2.').00. or thrcc rercelll (Y:7,) or the unpaid
porllon or lhe sehctlulecl paymcnt t1ue (rcgart11ess of whether lhe
paymcnt due consists of rnnciral ancllnlereSI, prmelpal only or illlcresl
l11l1y), If lhe final paymenl IS nol raK1 wlIhll1 I) c"llcntlar l1"IYs af1cr IllS
tlue, UnderSIgned will pay a late eh"lrgc of the greater nf $2S.0n, or
lhrec percent (3":'1,,) or an amOU1l1 equal lu the unpaid pOrlion or <I
hypothetical payment c81cuJaled in accord<ll1ce wiLh the repaymem
schedule described above as though such paymenl were not Ihe final
paymenl (regardless of whelher lhe final paymenl consiSls or princiral
"lnd interest, prinCIpal only Of iOlerest only). Such late charge shall hc In
,1clditlOll Il) ,1I1Y 1I1crC"I.\C made III Ihc ('ontnlCtu<ll R{lll'(~) appllcahlc to
the ()utst<rndrn!.! ha/<!Ilcc hcreof a.~ {/ rcsuJl or lTJi'IIUrllv of 1111S NOH: or
[ltllcrwlsc. "IS \-~'tll "IS III <llkll\l(l1l \0 <lny ()lllCr ;lrrllC<l.hll.' rees. ch,lr~cs
(Inti C{IS:/.~.
De/auf! Rate(s): Pos/.Maturity Raters). \Ipon the occurrellce of (lilY
I..velll llr Dd,lUlt (<1.\ eldllletl in thiS: Nll\e). (11 Hank's (lPIIOIl, interesl
sha1\ accrue ,,11 <I rmc equell to two perccnl (2'3 ) per annulll (1 hove the
COlllraclual RcHe(s) unlil Ihe earlicr of lhe dale Ihm such l:.venl of
Default has been cured or ui1lil and including the dale of maturity
hereof.
After mmurity, whether by acceleratIon or otherwise, interesl shall
accrue at a rme Iwo percenl (2(1(..) per clllllUm above the Contract ual
Rme(s) ul1lil all sums due hereunder arc pelid. Inlerest shall cnlllinuc III
accrue after the emry of judgment (hy confession or othc['\vlsc) at the
l.Onlrelclu81 Rellc(S) unll! ell! sums due hereum1er (mdior under Ihe
Judgment <Ire paid, excepl IhCll af1er 1ll,,11unty or. C1t Rank.s option.
upon the [)ceurrence o( "my 1-:ve111 llr l)Cf,,1Ull. inlcrcsl shall clccrue (1\ (I
r,,1\C equal 10 two percenl (2r'1) per annulll ahove Ihe C(l1ltraetucll
Ratc(~)
Books and Records; Time of Essence. So long a.'i Bank IS lhe hoJder
hereof, BClnk's books <Jnd records shall he presumed, except in the case
of 1TJ.;mifeSl error, JO accurately eVIdence al a1\ linles all amounts
outstanding under this NOle and the d<Jtc and amount of CClch advance
(me! p<lyment made pursuanl hereto.
p(lge 2 or (l
.'
The -pftlI11P\ .(I1111 ftllllllul perlUrlll,lllCe of ,111 ul UIlc.1erslgnelh
obligations hereunc.1er, lI1cluciing WllhllU[ lillliL<lliUIl lime oj prl)'mcnl,
lS of Ihe essence of lhls NOle,
Security Interest, Setoff and Assignments Tll secure till amounts at
,my lime oWing or pclyahle ulllier this NOll' anti UnderSigned's
ubllg,lllons hereul1c.1er, dS well as 10 secure all costs i:lnd expenses
incurred by Bank m the collection or enforcement of thIS Note Dr the
protection of any collateral secunng Ihis NOle (lllCludlllg wllhoUl
111ll11,1l1UIl all ,H.iv,lIlcts made by Bank for taxes, leVIes, insurance.
fllmg rces. and fqxlIrs It) or maintenance or S,lId Ctlll,lll't'<ll).
LJlllh.Tslgnl'L1I1crchy gran!.s Il) Hank a sccur'lIy Illlcn-'sl Ill, lien Ujltlll.
,-Ind nglll \ll' ',>clull ,1g,IIIlSI. ,111 l1epllSII <lCCl)UllL", crnlll."" SlTUnlll':-'.
Illoncys. ur ulher r)["()pl'rt)" III L Inl1l:rslg1ll.:d whICh 111,;1)" al <In)" 111m.' he
In Ille P\JSSCSSlun lJI LIL'livcred Il), mowed hy H,lJlk, IIlCluLi111g (Ill)
procccLis lJr rClurneli tl!- unearned premiullls of insur,1!lcc, and Ihe
proceeds l)[ all Ihe i'lJregoing properlY. Other pruperly, real lJr
rerslln,il. Illay secure this N\llC, as sel ronll in olller l10cumelllS Clm1
,lgreCilltlllS
Undersigned acknowledges and agrees IMt Undersigned shall renev.',
or cause 10 be renewed, the Cenificme(s). if any, until lhe
indebledness evidenced by lhis Note has been paid in full.
UnderSigned fun her agrees that Undersigned will execulc, or will
C<:IUSC III he execuled uplln demam1 by Bmlk any rl1lanclng
Sl,nemellls llr Dlhe! doculllenls. mclulimg, wllllout Ilmitation,
,llldltl()Jl(11 /\s.'.lgnlllenls or Dcposit !\ccnunl, which Hank Ill<l)' deem
neCeSS,I!)' \)1' dCSJr(-lhlL' It) cV!Lience, perfecI llr lll,lltlli;lIn r){:rrcctltl1l lJf
Ihe security intl'rcsl.'i l'rGlled III 111C CcniriGlll'(s) dlld ;-lJlY rcnc\\'al.'i.
replellTI1lcnls dnd suhsllluti\lns Illl'JTllL
Additional Tenns and Conditions
1 Covenants. Unlk.:rslgnt.:L1 covenanls and agrees tl1,ll unlll all
i)l(.it'11IeL1ness eVJ(.1ellceL1 Ilerct1Y has been paiLi in rull ClnL1 until
Undersigned's ability to borrow hereumier has terminated,
LJnliersigned shall: (,I) maJJ1Lain al all lJlllCS ,I positive tangihle net
wonll; (11) (I) havc all F.IWlrtlllll1enlal Perlllils necessary for LIle
C\lllducr nr each of Undersigned's 11USlncsses i-IJHj llIXT,J"lIOIlS, (2)
conduct each of llnL1l'rslgnell's husinesses and ,)per(l!lllllS III m~llel'1,JI
nl!llplli:lIlCC WIth ,III ,lpplJGlhll' 1':nVlrllnl1ll'Jlti-l1 I.dws ,111l!
1:.JlVlfllllIllCIll,11 PCrJ1111.'i. (.1) n\ll pl'rlllit l\ll'XJsl any evenl (lr clJlldJ\Jllll
thm requires or IS likely III requuT llllllersigneL1 ullller <lny
l:nvlflHlIllCIlI<l1 I.d\\ I\l IXI~' \lr cxpend I'ulllh hy \\,;IY (lr rinl''i.
)UdgJ11l'IlI.'i. d(lnl:lgl.'s. l'lc<lllllp, ITIllCdl:lll\lI1 m the like In ,111 <Iggrl'g:tll'
,1llll)UIlI. 111l' P;IYIllL'11l of Wllld1 c()uld reasollal11y he cxpectcd III
1IllcTlerc SUhSl<llltli-llly wllll norm,JI DpCnllltlllS of Undersigned or
materially ClL1verscly ,IJTecl ltle financial condillon of Undersigned, (4)
notil)' B8nk promplly upon becoming aW8re of allY pending Of
threatened proceeding, SUII, invesligation, allegmion Of inquiry
regarding any alleged eve III or condition thm, if resolved unfJvorably
III Undersigned or ,lIlY or Unl1ersigned's subsidiaries or alTihmes, is
likely I{l cause l)m1ersigned or any of its sullsidianes or affiliates
L1nlkr ,my j ':nvlnlllmenlal I.aw to pay ur expend funds 11\1 \Va\' of
rines, .lUl1gmcnls, ll"lm,lges, clcanlllg, rl'Illel1iatltlll or IJlt.' Ilkl'", ~lI1l1 ())
rnlVJlk ell UnderSIgned's C\lSI_ upon requt.'sl hy Ij:lIlk. Cerl1ric,llions.
dllCUlllCnlaIl{lIl. C\lpll'~ \ll plc<llIings ClJ1lll11l1er Inl'(}["ll1<lllllll rl'S<lrding
I Ill' ;Jho\'c. ;illlIl Illrm ~)11l1 l"\llltl'nt s,IIISr,KIl}ry III 1~:1l1k: (l") l"\lIldUrl
l\Kh III llndLT;>.I~nl'lrS husllles;>.c.'" :lml llper,IIHlIlS ]11 m,lllTI~11
nll1lJlII;1I1LT \\1111 :ill kdl'r;d_ stdte m I\l(;i! IClWS, statule.'i. rl'gul'Jtl\lIlS,
rulc~. ()rdill,lIlCl'S. COUl'l llr lILllllinislr,lllvc l)l'ders or uccrl'l's. \lr
priv,llc agreemenls or illll:::rprel,lIions, now Of" hereafler In exislcnce.
lilrecllyor indireclly relating 10 or 'lrrecting Undersigned\ busmesses
or llpenlllons; (d) usc the proceells of the 1.lIle of C:redll eVlliencl'l1
herehy ollly for huslIll'ss purpuse(s) specifiell IU Bank ,11 m pnm 10
lhe L:xecuti{lIl IlCn.:uJ": (c) promptly nDljfy Hank ill wrillng llf ,lJlY
cll,lIlgl' In Llnl1erSJgnclfs residellce or Oller 1',Xcculive Olllcl': (1")
purch<lsl' <-Jllll 1l1;J1Il1<l11l plllieles {ll IIl:'.ur<lIlCC (1llcluding nl}(KI
insul-,lIlcc) to protecl (lg,liIlSI SUCll risks ,lm1 casu,IIIICS, and III .'iUCll
alllllulllS, ;J:-, S11,1I1 l1e required l1y H;lIlk ;-lIll1/()]" 'lpplJUlhlc 1,1\\. which
pllllCll'S \11,111 ( i) he In ItJrill ,11ll1.'iuhsl,-llllT S:III.\[,]Cltll'Y l\l Ij;lnk_ (2) ;11
Hank's optIOn, designate BanK as loss payee and/or 3S addilional insured
and/or comain a lender's loss payable endorsement, and (3) be (0
certificales evidencing same shall be) deposited with Bank; (g) (I
mmnwlIl and keep proper records Jnd books of account in conformanc(
with generally accepled accouIlLing pnnciples applied all a consist en
basis in which full, lrue and correcl cll1ries shall be made of (II
Undersigned's dealings and busmess affaIrs, (2) proVide 10 l:3ank a
Undersigned's COSL, upon Bank's request, i"lIlClnclal or other informClllon,
documenLatioll or certificatIons (includlllg without limitation annual ant
pemKilc balallce sheels and Illcome slatcmcllts. personal fimlllcl3
statemenLs, redcral Income I<IX rl't urns, Illvcntury reports (including,
L1cscnpl lOll ll!' raw l11(1tenals, i"llllslled gllods ,llll1 the <lglllg thereof, a~
,]prIIGlolc), ;-Illll accuulllS rccl'lv<lolc and paY;:ll1Ic agmg repons), all ir
Illrm dnd conlent s<l!isJ'actury to Bank, (lnl1 (1) perlllll, upon request b~
Bank, ,illY uf lhe officers, employees or rcprescIllatives of Bank to visil
ilIlli InspecI any of Underslgned's properties and locations and Ie
examine iLs books and records anl1 discuss the affairs, Finances ane
aCCOUlllS of Undersigned with represelllatives lhereoL as often as Bank
Illay request; (h) provide additional collmeral at such limes and h8vin~
such value as Bank may request, if Bank shall have reasonable ground~
for believing that the value of the co1l8leral securmg the indebtednes~
evidenced by lhis Note has become insurricienl to secure said
indebtedness; (i) pay, upon demand by Bank, (1) all costs and fees
pertaining to the filing of an)' financing, continuation or lerl1linmilJl1
SlalemenlS, lllortgages, s,llisfaclion pieces, .Iudgmellls and any other lype
l)f documenl which Hank deems necessary or deSirable LO be filed wiLh
regard to securllY inleresls which sccure Ihe II1debLedness evidenced
hereby., regardless 01' whether such secunty IntereSls were gra11led by
Undersigned. anti (2) all COSlS and expenses incurred by Bank in
connectIon wilh any collmeral securing thIS NOIe (including wiLhoUl
11111lt,1IIOn all adv<l11ces ma(k hy Bank lor laxes, levies, lI1surance, repairs
IU or maintenance or said collateral, appraisal or valumion of said
collateral, and delerminalion of !load hazard), regardless of whether
such collateral is owned by Undersigned; and (jl pay, upon del1lan(1 hy
Bank, all amoul1ls Illcurred hy Bank in conneclion with any action \lr
proceeding laken or commenced hy Hank to cnforce or mllect thIS NOll'.
including attorney's fees equal I() Illc Jesser l)f (I) 2W,;.; or lht:
oUlStandll1g prinCIpal h<ll<l11Cl' ,-lIld Illtl'reSI lhen duc hereundcr lIr
$Soo.on. whichever IS gre,ncr, ur (2) Illl' 1lli.IXlmUlll C1lllllUIlI permillel1 hy
1,1\\, plus <llltlrlll'Y\ CUSIS ,lllt! <-III ell;>.ls u! legal prucccdings.
2. Events of Default. The llceUrrl'nee or any of the following shall
C{lllSllIUll' an "LveIll 01 Dcraull" hereunder: (a) default III paymenl or
performance of any ur Ihe IIldehtcL1ncss or obllgmions evidenced by this
NOle or ,lilY other eVldencc or liability or Undersigned LO Bank; (b) the
Lxeacll by any Obligor (defined as Undersigned cmd each surety or
guaramOf or any of Undersigned's liabilities LO Bank as well as any
person or entity gr8ming Bank a security imeresl in properly to secure
any indebtedness evidenced hereby) of any covenant conLained in Ihis
Note or in any separate secunly, guaralllee or .wrelyship agreeme1l1
helween Bank and any Obligor, the occurrence of any default hereunder
Dr under the Lerms of any such <:Igreement, or lht disCllVc!)' by Bank uf
any false or misleading repreSe1l1allOll made by allY Obligor herein or in
<lny SUCll agreemenl m III any otller lIlfurl1latinn suhlllilled to Bank by
any Ohligor; (c) wilh respect 10 any Ohligur: (I) demh or incapacity ,)[
any individual ur gencral panner, or (2) dissulUlion of allY partnershIp or
CurPUr<:1I1011: (l1) ;-lIlY asslg11mcntlm the henefit uf creditors hy any
Ohl1gor; (e) lllsolvency lll. <lny Obligor; (f) the Jihng or COllll1lenCelllel1l
\lr (lny peliliun, action, GIst: Dr proceeding, voluntary or lIlVolullLary.
under <my sl8te Dr f'cLieral 1m.\' reg<lrding bankrurtcy, ll1solvency.
reorgamzauoll, receIverShIp or ti1Ssulut!uJl, inclu(ilng the BankrupLcy
Reform ACI of ]978, as amended, by Dr <::lgainsl any Obligor; (g) default
under Ihe terl1lE. of allY lease ur or Ilmngage tlll thc prcmi.')es where rC,11
or rersonal propeny securing lhe 111l1ehlcl1ncss eVlllcnccd hv Ihi.'. NUll' l.'i
located: (h) the g,ml]shmenl, lax (]SSCSSll1CIll, Cltli.1Chlllt.'IlI 'or lakIng hy
governmenlal autllllrlly m ulher crcllltm llr any prupeny or ,lnv Ohli!.!llr
wlllcl1 is in.I-j'lllk\ Pl)S.\CSSl\lIl llr wlllch Cllllstllules .~ecurit)'~_r{)r ~ny
Imklltednes.\ eVlllcncl'Ll hcrl'l1\ (IJ cnlry uJ Judgmelll <I gaIll,')[ <lily
Ohligl)!- III <lilY Cllun ur rl'curL1: (j) the asseSSIllCIlI <Igalllsl an)' Ohllgor b)1
Ihl' lnlcm,1I Revellul' Service lli" (lilY uther rederal. slate or IDcallClXin!l
Page 3 of 6
.'
ClUlhllnlY llf unr<:lIl1 1,1X~S. m [he: IssU<l1lCC oj d levy Dr Ihe
entering of (l lien III cOllnCCllOll lhcrewllh; (k) change in control
of or transfer of any intereSt In any Obligor (other than an
Ohligor who IS an I11divldual): (I) a determination by Bank,
which dClermin<ltion shall be concluSive if made in good faith,
thai" Tl1cllcnal adverse change has occurred in the financial or
hUSl1less condition of any Ohllgor; (111) the 1l1alurily of any life
insurance policy held as coll8leral for the indehtedness
eVIdenced oy Ihls Note hy rcason of the dcmh Dr the insured m
olherwise: (n) the revocation, termination, cancellation, dC11I81
of liahililY, or the 81lempt of any of the fnregomg, hy any
Ohligor of any ohligmioll nf liabilily whatsoever of the Ohligor
10 Bank, including withoul i1l1lilmion (lilY security, guara11lee or
suretyship agreement: m (0) ddaull hy Undersigned in lhe
paymen\ l)[ any 11lliebteclncss of Undersigned or in lhe
performance of 8ny of Undersigned's obligations (other lh811
indebtedness or obligmions evidenced by lhis Note or any other
evidence of liability of Undersigned to Bank) and such defaull
shall continue for more lhan any applicable grace period,
1. Acceleration; Remedies. Upon the occurrence of ,lilY Eve11l of
Def(lult: (8) al its oplion, Bank may immcdimcly and wllhout
notice lempormily SlOp clllowing Ihe horrowing of money, or
close Undersrgned's l.inc of Creclil <lIld permanenlly SlOp
allowing Ihe horrowlIlg of money: (0) all <H110uIllS e1ue under
(his NOle, including [hc unrc\itl h;l!;lJlCC (lr pnncqlcll <:111<.1 ll1\erest
hereof. shall hecomc 11l1I11cl1r;IIl'ly l!ue ;1Ill! [1<I)'<:lhle ell Ihe Opllt)n
(If l~ank, Wllh()UI any dl'm<lml (lr nllllCC Wh<:II-"(leVer~ anlt (e)
Bank may immclil<llcl\' ,1Ild wllhoul l1cmCllll1 exercise any llr \IS
nghts (lIld rel11eclies granled herein, under applicable law, or
which II may olherwlse hClve, agmllsl Undersigned or otherwise.
NOlwllhstandmg any provision 10 lhe comrary contall1ed herein,
upon Ihe occurrence of an F.vent of Default as described in
Section 2(T) hereof, all amounls due under this Note, including
withouI limitation Ihe unpaid halance of prmcipClI and interest
hereof, shall become immedimely due and payable, without any
demand, notice or further Clclion hy Bank whatsoever, and an
action Iherefor shall immedialely accrue.
4. Bank's Rights. Undersigned herehy aUlhorizes Hank, and
Bank shall have Ihe conlinulIlg right. at liS sole oplion and
di:-.cretion, 10: (8) l10 anything which Undersigned is requirccl
hul fails 10 do, and in panicular Bank may, If Undersigned fails
to do so, obtclln and pay any premiums payable on any policy of
ll1surance required 10 be ohl8ined or mamtained hereunder; (b)
direct any insurer 10 make payment of any insurance proceeds,
Including any returned or unearned premiums, directly to Bank,
and apply such moneys 10 <lny indebtedness or other a1110unl
evidenced hereby 111 such order or fashion as Bank may elect;
(c) pay the proceecls of the I jne of Credit evidenced hy this
Note to 8ny or all of Ihe UnderSIgned IIldividuCllly or jamlly, or
10 such other person(s) as any of Ihe Undcrslgned mav direc[:
and (d) add <my ,11110Un1S p<llcl (lr lIlcurrecl ~h\' Hank under
Section I(i), Seelion IC]) (lr Seellon 4(<:1) 10- llle [lrincirrll
amount of the lI1dehtellncss cVll1cncccl hy Ihls Notc
). Authorization to Borrow. llnl1crsigneli herehy reprcsc!lIs.
warrants, cenifies and covenants as f'allows:
(a) If Undcrsigned is a corporation, that the person(s) Signing
helow hold(s) the officers) Indicated below (and continue \0
hold such office(s) until Bank has received notice to the
contrary in writing from Undersigned), and that the Board of
Directors of Undersigned has adopted resolutions providing
that: (I) the person(s) executing and delivering this Note on
behalf of UnderSigned is/are Cluthorized (i) to !!leur
indebledness 8nd obligations on hehalf of Undersigned hy
borrowing or mak!!lg other financi<ll arrclllgemcnls with Bank
from time to lime, upon lerms and conditions as they in Ihe\r
sole discretH)!l decm desirable, (il) 10 make, execule (J1;d deliver
promissory notes. leller of credil agreements, seclIm;.'
8greements, assignments, mortgages and all other documents
rc~ulrcll hy H<:1\lk !!l Ctl1lllCC\lllll w\lh Ihe IIlClIfflllg oj IndchlCdllc~s l)r
OOllgrllllll1S, <lnd (ill) 10 ,Isslgn Clnd pledge ,IS mll<:llCfrll secumy for ,my
such indehlcliness or ohhgalions, now tlr hercaflcr eXlsling, any real
tlr [lersomll propeny of Undersigned: (2) Ihe ,IC!IOllS of anyone Or
more orficers or Undersigned III hmrnwl1lg Il1tJl1ey fmlll Rank
heretofore for Ihe ;1CCOUlll of Ul1derslgncl1. \11 <:\s."lgning m rlcdging
<In)' of lJnderslgllcd\ rropcrty I.or lhe p<:lymcnt Iherel1l.. m in dOing
<lny \)Ihcr ,leI 1Il connCCll(lll Ihcrcwllh ,Ire herehy n-lliflcd, Ctmhrmcli
,lllel Clppruvcd: ,met (1) s<:1Il1 rCSOlulHlllS ."11;111 h;.I\'c the l"on:c or <:-1
cul1lllluing <lgreclllclll w\lh H,ll1k. rl1lli sh(lll he hllldlllg upon
lJnclcrslgnccl unlil ,I rcslllullt}ll <l\11cnctill~ lhem sh,lll h,lve hccn duly
,llld leg_Illy m10plcli ane1 lj,mk lurl1lsllClI ,1 ccn irlcll cO[ly I hereof'.
(h) If tJnderslgncd is ;'1 partnership, lh<:-ll I: I) lJncierslgned.s !lal11e
shown oclo\\/ IS a Irade name of Ulllicrslgnu.t's fIrm usell in I he
conducl Df <lil unincorporClled hUSllless ownel1 enllfely hy lhc persons
slgnmg this NOle on behalf or S<lid panncrshlp: (2) the pClrlncrs
executing and delivering thIS NOll' are <-lUlhonzed (i) 10 Incur
mdehledness ;,lncl nhligmions on hehalf ur UnderSigned hv horrowin~
fmlll ur !ll8klng (llher~flllancing or crcelll <leWllllm;datl{)n~ with Bank
from Ilmc 10 lime, UpOIl such lerms anli conditions as lhey In theIr
sole lhscrellon l1cClll liesir<:lhlc, (il) lO lllc1ke, cxecule, and deliver
rromlssmy nllles. leller or cn::lllt agreemcnls, security agrecments.
(lsSI~!llllellls. l11orlg<lgCS ,1Ilcl ,III olher documenl'" required hy Bank in
nmnCC!HlIl WIIll the lllcurnng llr IIll1chlcdncss {lr ()hligali()]ls, rlllli (Iii)
Il1 ;lssl~n ;Illcl pll'eI~c ,IS wll,llcral see'unl)' 1m <lilY such 1I111ehlcdnc.'\s {)r
ohllg<lIHlllS. nm\' m hereafter c-x\sllng. any real m perso1lC11 pro[1efly 01
llnllcrsl~llell: (_,) Ihc ;ll'll0nS of <lilY {Jill' lll- n1mc panners l)r
LJndersigneli in horrowlllg mOllcy from Bclllk hcrelororc rm I he
,ICCOU!lt 01 Undersigned. In assIgning or r1edgmg <my 01
lJnlicrslgnclfs propeny fur the paymenl Ihereof". or III l10ing any
other ,1CI in conneclion thercwilh ,1re herchy r,l!lf"ieeL confirmed, <111(1
approvee1: (4) nnlwilhst'lIldlllg ,1])y !llodifiC<1111111 or lermmal10n or the
power of any of the panners In represcnt S,l1l1 firm, whclher t>y
expiralion of llle partnership elgreemenl, hy death or rellrcment 01
any partner, or Ihe accession of one or more new pClrLnerS, or
otherwise, and nUlwnhslanding any other IHllice thereof Hank may
recclve, lhis cllllhurilY shall conlillLlc to he hlnding upon each uf lhe
Ulllierslgnect mdivll1ucllly anl1 upon Iheir l1e,llh or retiremenl or any
partner, or lhe accesSion of one or more new [1,lrtners, or otherwise,
anl; nOlwithsl<llldm,g any olher notice Ihercn[- Hank may receIve. thIS
authOrity shall continue In he hmeiing upon each of the lInl1crslgncc1
inlilvic!ually anl1 upon lheir legal reprcsentatlves, and upon
Undersigned and Its successors, unlil Bank has receIved nutlet III
writlllg to lhe conlrary signed hy one of the Undcrsigncd or hy
LJnderslgncl1's lluly aUlhorized agenl (Receipt Df such notice will nOI
rellevc <lny panner of <lilY llahiln)' <Irlslng Irom uhlig;'llions mcurrccl
prior tn Bclllk's receipt of such notice.), amI (5) n01hing herem shall
be conslrued IU limn the rights granled 10 a pClflncr by law or by the
parlnership agreement. hut all righls gralllcd herein shall he in
<](Idilio!l 10 such righls.
(,. Definitions: Miscellaneous Provisions.( ,1) t Illl1ersigneli waives (excepl
\\'hcrc rCljllc",lel1 hcrehy) 1l1l!ICe or rlCllon t;'lkcn hy ncJnk~ and herehv
rmillcs ,1ll<.1 collrirllls whalever Hank lllay lln, Hank shall he CI1l11lel11~)
cxerClse any righl nOlwilhslanding any pnm exercise. failure to
exercise or dclay m exerCIsing any such nght U'q Bank shall relsin lhc
lien or any judgment enlered on ,lccounl llf the illl1ehlclines.\
eVIdenced herehy UnderSigned warrants lh,ll 1 Jnl1crslgnel1 h,IS no
defense whatsoever tn allY aClion or procecdin~ lhm may he hroughl
10 enforce or realize on an)' such judgmcnl. (C) If any provislun her~()r
shall for any reason he held invalid or unenforceable, no olher
prOviSIon shClII be <:lffecled therthy, ClncllhlS Note shall be construed as
if Ihe mvnlid or unenforceable provision had never been <l pan of it.
The deSCriptive hcadlllgs of this NOle i:lre for CDnveniencc onlv and
Sll<:lll nOl in ,my way ~afrect Ihe meaning or constructIon t;f Clll"
rrnvislon hereof. (d) The rights and pnvllege~ or Bank contained III
Illis NOle sh8111nure 10 Ihe henefil or ll~ .\Uccessors 8nd assigns. rll1d
[he dUlles of UnderSigned Sh811 hi\lli ,lll heirs, rersonaI
re[lre~elllalives, successors <'1I1cl (lsslgns. (e) This NOll' shall In 811
respects he gnvcrncli hy Ihc l<lwS 01. the SI,lIC ]n which lhls NOlc IS
p,lyahle (exCepl I() the extenlth<ll ,"edenlll<I\\' gl)','crnS) (0
1\lgc -I-(1lh
U ntierslgnee:\. hereby Irrevocably appoints Bank and each holder
hereof as Underslgned's attorney-in-fact [0 endorse
Undersigned's name 10 any draft or check which may be payable
LO Undersigned In orc.1er 10 collecl Ihe proceeds of (lny ll1surance
or an\, rei urned or unearned premiums In respec1 of (lny policies
01' 111;Ur,lnce rcyulred tu he m<:llllti:llned hcrculleier. lJllc.1crslgned
herehy aekllDwledges lhw lhis <lppu11l1l1lenl ur H,mk and each
holder he fell]" as clll()rI1CY-IIl.r;:lCl IS Irrevucahle alld IS cllupled
with an mlereSl (g) Um1crsigncel assIgns 10 Bank <111 l1l(lIlCYS
which l1lav become payable on any polic)' uf Illsur,Hlce fcquln:d
III he 1l1';lllli:llllCd ullder lhlS NlJle, HlCludlllg 1m)' rClurned Dr
uncarn(;cl pl"l'I11IUl1lS (h) "!':nvinl1lmCnl,ll I.aw" means (lny
lederaL slale l)f lucal environmental law, st,Hule, regul"Hioll, rult.:,
Ofe1111<lnCC, cour! or i;ldmmislrmlve Dreier Of c.1ecree, m PflV,IIC
agreemenl Dr 1I1terprelallDn. now or hereafter in eXlslence,
relaling 10 the manufaclure, distribution, labeling, use, handling,
collection, storage, LreaLl11el11, c.fisposal or otherwise of
Hazardous Suhstanccs, Dr In any way relming to pollution Dr
prnlccllun ul lhe enVlrt)lllllen\ Dr pul11ic heallh. (i)
"j:.nvlrlJnlllenlal P\;rmil" means ,lny feLk!'.ll, SL<ltc or 10c<l1 permit.
license or ,lulhunz(\lll)n IssucL1 umier Dr III eonnection wllh any
Envlronlllenl,ll LCl\\'. (j) .'Hazardous Suhslances" me,lJlS
peLroleum ant1 petroleum prm1ucls, r<ldioaclive m,lLerials,
asheslos, ra(1on, Ic,l(i c{)ntaining l11<llcnals, sev...agc Dr any
material~ \lr suhstances defined as ur inclu<.1cc.i III lhe: (1eflnllllm 01
"hazarL1llus waSles." "h,lzardous sul1sLances." "hazar(1ous
mCllerials," "loxic suhsLallces," "hazardous air pollut(lll!s," "lOxic
pull U lClJl IS," "pullutiun," or lerms of sil11ilClr l11earllng, as Ihose
Lerms arc uscc.1 in ~lllY EnvirunmenLaI L,lW. (k) "ChIef Executive
OffIce" mean~ the place from which lhe main pan of Ihe business
oper<Hinns \If an entlly is Illanaged. (I) "Undersigned" refers
inlllvidu,lIly ,1IlL1 c\lIIC:C11Vt'ty It) allmiJkcrs uf lhis Nult:. Including.
in the case of any partnership, all general partners of such
partnership individually and collectively, whether or nOI such
partners sign below. Undersigned shall each be joimly and
severally bound by the terms hereof, and, with respec\ to any
partnership execuling this Note, each general partner shall be
huund herehy bOlh III SUCll gcner,iI partner's 1llc.11vldual and
pc\I'lnershlf) C,lp<:lCIlle.'\.
7, Affidavit of Business Loan (thiS A1li(lavll is not applicable if
Undersigned is a curpllralll)ll.) Undersigned. being duly
au I hurized, depose{ s) and say( s) u n(1er penallY of perjury that
Une1erslgned:
(a) is/Are engaged in business as 0 OWller(S), 0 General
Panner(s) of: (name and ll8.lure of business)
(b) Hereby makers) apphcmiull \l) Bank fur a luan, the proceeds
or which willl1e utilized for lhe purpose(s) of
(c) Fxercise(s) actual conlrol nver llle managenal deCisions llr
111e l1usiness.
(Remainder of paj!c intcntion:JII)' len blank)
.~"
.,:,f .,...'i,;~
,;.1,_1-1"
t.,~<~~~
Page S or ()
~. ConfessionolJudgment. IINIJI'RSICiNIJ) 11I1{lllY
FMPOWI'.RS Till'. PROTIIONIH/\RY OR IINY
ATIORNI.Y OJ IINY ('()lIJ(T 01 RU.()RD TO IIPI'I'.I\R
FOR UNDI'.RSICiNFD I\ND TO (,ONIT.SS .JlJDCiMJ'.N"1
liS OI"I.I..N AS NITFSSARY !\Ci/\INS.I UNDI.RSlliNI'.D
IN FAVOR OF THF HOIDF.R HI'.RI-:OF, REGARDl.ESS
01" WJ"IFTIIER ANY EVENT OF DEFAULT HAS
OCCURRFD, AT ANY TIME AND AS OF ANY TERM,
FOR THE OUTSTANDING PRINCIPi\l BALANCE
HEREOF PLUS INTEREST DUE UNDER THE TERMS
IIIRI III I\ND 1\11 OIIII.R i\M()UNTS IJUI'
III.I(lIINDIK T()(;I'TIII'.I{ WIT]I ('OSTS 01. I.I'Ci/\1
I'ROI IT.IJINC;S I\N D /\N liT! ()RN I 'Y.S ('OMM ISSION
U)llll! TO 1111. II'SSI'.R 01 (/\) 2W'! 01. Till
CllITSII\NIJINI, PRINCIPIII 1l1\I.I\NCI I\ND
INTI.RIS111II'.N DUI' III:RUINDI'.R OR $SOO.IlO.
WHIClII'VER IS liRlAn.K OR (H) Till.: MIIXIMUM
AMOUNT PFRMlrrED BY lAW, WITII RI'.II'.ASI.. 01
ALL ERRORS. UNDERSIGNED WIIIVES AI.I. lAWS
EXEMPTING RFAL OR PERSONAL PROPJ'.RTY
I'ROM EXFTUTION.
n,y si1!ning this Note, Undersigned ~lgrees to nil terms of this Note and swears, unde)- penalt), or perjur+y (BS set fOI"th in
IH P~I.C.S,~ 4904, ifgovel+ned hy Pennsylvania law), to the Aflidavit of Business Loan (if completed) set hwth in Sel:tion
7 of this Note.
Signatures
Witness the due execulion hereof under seal.
Attest/Witness:
~in:s~~~e~
705 WEST SIMPSON STREET
MECHANICSBURG, PA 17055
-
,
(Corponlte Seal)
Mellon Bi'lnk. N.A
Mellon 8;.mk (D[-:) Nation;:}1 Assncialiflll
CL-4o~6R('v_(I~!qg)1_(' 12.,'{jRl.D 12Mg
027S 1J2S.IR:;.,IO<l I cW,:!r.IOll
1l71S'l'J.14:;_,
Entity:
CAR CENTER INC.
(Seal)
By: (Signature/Title)
x (Seal)
By: (Signature/Title)
x
(Seal)
By: (Signature/Title)
x
(Seal)
/\Ulhnri/l'd Ball k .'-i1;:.n;lrur~' ,<' l'vid~'n'T Ibllk'" ^pl'l"<w;d "I II)('! .inl' "~I ( 're{hl
x
zt'i-J/;(~ S1- ;fif~'~_A~-/
'7;?/ 70 ::;:~
IlclpC /1 ol"h
Addendum
rJllS/\l)I)I,NI)lUVl lIdlcll Jllly 10 1999
III llll.: NUlc dllLi 1,111e oj (:rcl111 AgrCl:IllClll Dr III Illl: NUIl:_
ASSllTlllllent i.:lIlli I JIlt: llJ Crcliit ^gn.::cment dalell
Jul~ 16, 1999 (in tllhercasc, IrK "NOIC''). (rum
MF.~HANT~SRTlRr, SPORTS (;AR r::F.N'T'F.'R TNC:
("Ulll1er.'ilgned") \ll
Mellon Bank, N.A.
("Hank")"
v..:III'Rl'I\S. lllllk'l-sl.:lIKlI ~JnLl lj,mf.; LiC;-;IIT III IllC()rp()I-,IIC \ ilL'
IllrllJ\\'1I1~ pro\lShHl\ mId Ihc NOlI...'
NOW. Tl/LH1'FOHT. UndersJgne(J. jJlJcnt1JJ1~ 10 1)(: leg,llly llUUIllJ
hereh)', Cllvell<lllls <l1l(1 agrees that tIle NOle is hereby tllociil'ied as
described he)ov,'.
Signatures
Wllness the clue cxcculiun IlcrcuC under seell.
Attest/Witness:
(~~:S-~dd~
--::.
705 WEST SIMPSON STREET
MECHANICSBURG, PA 17055
(CG_....p{)r?-::~ Seal)
f~
.-,
I / .1); 1'1 !Z,,\ 1111'1~1 1 (
!!]/\ II::S P;,,)II-1
11I"Ii\II}I!I"!i\
) ,1-11>]1, Ill))
1\7 I '."'! 1-1,,;
@ Mellon Bank
I JkClive lnml .Jul y l h l ggg
lor Cl period uf ~lX (h) IlllJl1ths. till' Contractual Ralc(s) shall be equat
10 .J [{He per annum wllleh I~ 0.75% below Bank's
Pnllle Rme, such raLe \() cJ1angt' {rum lIme (0 lum: <:l:-; of the effective
d81e oreClch annqunced chcmpt III such Prime IZme. On
)-/7-dt)()o or(cll Bank'.surUon) upon
Ule occurrence ul- an Event llr I)C[',IUII, whIchever llecurs rir.,>1. lhe
Cuntractual R,nc{s) slwll change amj he t'qwlllO a ralt' per annum
\>,'hictl is 1.75 (;; aht)ve IS<ln~'s IJrl1llc H.me. suc;h nile IU
Cl1i-lllgC fror-JJ lime In lime as I)) Ihl' cHn.:JJVl' dale lli" c,Jch annullncel1
change III such Prime Relle. ilS \ll'lgill,llly SCI fonh inlhe NOll'.
All capiLalized terms, if not OlllCf\vise defined in this Addendum, shall
llave the meanmgs seL ['onh 11l the Note. 1':'J.cepl as sLaLed in this
Addendum, the lerms, covenanls, condllions and provisions of the
Note will remain in Full force and effecl
Corporation or Oth r Entity:
MECHANICSBURG spa SCAR CENTE INC.
By'" ignature/Ti e)
x (Seal)
By: (Signature/TiUe)
x
(Seal)
By: (SignaturejTitle)
x
(Seal)
By: (Signature/Title)
x
(Seal)
()nite Addre~s 2- fA.} ilI~ S +
~/,~ /4 /70:;:;-
EXHIBIT "B"
Gua,anty and sUlety.aPAgreement
With POVver to Confess Judgment
1. To inel uce:
Mellon Bank, N.A.
("Bank") 10. transact husiness and to make credit
accommc.-)daIIDIlS wllh
MECHAN :rCSBURG SPORTS CAR CENTER INC.
("Deblo]" "), Undersigned, as defined below, does herehy
!!UaranlcC, C1bsolutelv and unconditionally, and does hercbv
become SUrely for' the full and timely payment of the
principal oC and interest 011, all obligations, debts, dues,
IJlstrume nls, liahiliiles, i.HlvliIlCes, judgments, damages,
losses, cl2ims, contracts, and choses in aClion, of whatever
nature and huwever arising, past, present or future, and any
and all c^[en~i{)ns ,:lnU renewals thercor in whole or in pan,
whether c:Jiret:l ur indirect, absolute or contingent, vuluntary
Dr involuntary, now due or 10 become due, and whether
owed LO Bank from Oc:htor as drawer, maker, endorser,
assignor, guaranlor, sureLy, ur olhel"\visc whahol'vcr
("Ohligat ion,I"), CXCL'pt .lhis Guaranty (tnd SUfcLy'.;,hip
Agreement ('Agrecmcnt") shall JHH L'Xlcnuto any ohll~(lti()n
or Dd)IO r whiL'h IS lkfillL'U as "consumer credit" hv Fcucral
Rcserve BtlllrU Rcguli:Hion Z, ] 2 C.F.R. ~ 22h.l ct se'q., anu
is nul exempted from thc llppliclltion of thai RL'gullltion.
Undersigned will reimburse Bank or any subsequent holder
hereor fDr all expenses incurred, and nO! rcimhursed hy
Dehtor, in collection of any Ohligcnions. If this Agreement is
referred for mlleclion to an allUmey, Undersigned will pay
an altorney's ree equal 10 the lesser of (3) 2or}}, of the amount
due or $SOU, whichever is greater, or (b) the maximum
amount permitted by law, and costs of legal proceedings. The
Undersigned\ Obligations hereunder shall be payable at
Bank's olTice~at
Harrisburg, Pennsylvania
2. This is a gUClranty of p;~yment alld nol merely or collection.
In the evenl oj' Clny defClult hy Deolor in payment ()]
otherwise on ~1ny Oblig;1tions, Undersigned will pay all OJ
Clny portiun o!. Ohligations due or thereafter becoming due,
whcther hv (J\:celcralion or othef\^'ise, without LicfaJcalioll or
offset of a-ny kinu, withuut Bank firsl heing reguircLi to make
demand upon Debtor or pursue any of its righb against
Debtor, or against any other person, including other
gUClrCllltors; and without being required to liquidate or
reali/I..: on any collateral security. In any right of (lclion
accruing to Bank, Bank I1l<:lY elect 10 proceed against (a)
Unucr.-.;igned 1()~L'thL'r \vith Debtor; (b) Undersigned ami
Dchtor in<.lividuallv; lH (c) Undersi~neu onlv \ViLhout havinc
first commenced ar;y ,-Ktion against DchlOr. ' ~
.1,. Undcrsiv,ncd hcreh\' v,rallt.'. 10 Bank a SCL'UriIV inlCreS! in,
lien uron.~ant.l righl ~)( setofr againsL, ,ill l.k.'p()~it account.'..
credits. securities. moneys or other personal properly or
Undersigned which may <:if any time be in the possession of,
delivered 10 or owed by B<ink, including any proceeds or
returned or unearned premiums of insurance. and the
proceeds of alllhe foregoing property.
4. Bank, without notice Lo Undersigned, mav deal wiLh
Oblical ions anu anv collateral secuJitv Iherd.or in such
llli.lIln'cr (j;-i B;mk m~v d~l.:m (u.lvisahlc -and lllav renew or
cxklllJ Ohligations or. any pari thereof": 1ll(IY accept partial
paymcn I, Dr ;-il'ltle. rClca;-iL', tH comprom isc the S;.lllle: may
.
@ Mellon Bank
demand additional collateral security for Obligations, and
substitute or release the same; and may compromise or
selUe with or release and discharge from liability any of
Undersigned or any other guaranlor of Obligations, or any
other person liable to Bank for all or part of Ihe
Obligations; all withoul impairing the liabilily of
Undersigned hereunder.
5. Undersigned hereby uncondilionally waives: (a) notice
of acceplance ollhis Agreemenl by Bank and any notice of
Ihe incurring by Debtor of any Obligations; (b)
presentment for payment, notice of nonpayment, demand,
protest, notice of protest and notice of dishonor or default
10 any party including Undersigned; (e) all other notices 10
which Undersigned may be enlitled bUI which may legally
be waived; (d) demand for payment as a condition of
liability under this Agreemenl; (e) any disahility of Deblor
or defense available to Dehtor. including absence or
cessation of Dehtor's liahilitv for any n:ason whatsoever;
(f) any defense or circumst~i1lCe which might otherwise
constitute a legal or cquilahlc discharge o!" a guaranlOr or
surety; (g) all rights untler any sLate or federal statute
l.h:aling wilh or alTecling the rights of creditors; and (h)
until OhligcHions are pl.lid in rull, any right to subrogation
or realization UIl any of Dehtor's property, including
parlicipation in the marshalling uf Dehtor's assets.
6. This Guaranly and SuretYShip Agreemenl and
Undersigned's payment oblig<Hions hereunder shall
conlinue to be effective or be reinsuHed, as the case may
be, if at any time payment of any of Obligalions is
rescinded or must otherwise be restored or returned by
Bank, all as though such paymen t had nOl been made.
Bank's good faith delerrnination <:IS to whether a payment
mUSL be restored or returned shall be binding on
Undersigned.
7. Unlil Obligalions are paid in full, Undersigned hereby
unconditionally subordin<:ltes to Obligations all present
ami future debts, liabilities, or obligalions of Debtor to
Undersigned, and all <:Irnounts due under such dehts,
liabililies, or obligations shall be eolleeled and paid over
LO Bank on account of Obligalions. Undersigned, at
Bank's requesl, shall execule a suhordinalion agreement in
favor of Bank 10 further evidence and SUPPOrl Ihe purpose
of Ihis Paragraph 7.
^. Undcrsigneu \l,,'arrants lu Bank: ((J) IlO oLher agr<..:ement.
representalilln o!" spcci,.Ji c()llllitio!l exists hetween
Um\(.:rsigned and Bank regarding the liahility of
Undersigned hereunder; nor does any understanding exist
helween Undersigned and Bank lh<-.tt the Obligations of
Undersigned hereunder arc or will he other than as set out
herein; and (b) as of Iho L1ale hereof Undersigned has no
defense whatsoever 10 any action or proceeding that may
be brought to enforce this Agreement.
9. Undersigned will provide financial information to Bank
upon request, including balance sheets and income
statements, in Form and content satisfactory to Bank.
10. No failure or delay on Ihe pari of Bank in exercIsing
any right, power lH privikg<.: hereunder shall operate as a
waJYt'r thereof"; nor shall any single or partial exercise of
EXHIBIT "B"
Page I of2
.
any right, power or privilege hereunder preclude any other or
further exercise thereof, or the exercise of any other right,
power or pflvilege. Failure by Bank 10 Insist upon strict
performance hereof shall not constitute a relinquishment of
its right [0 demand strict performance at another time.
Receipt hy Bank of any payment hy any person on Obligations.
with knowledge of a default on any of Ohligations or of a
hreach of this Aerccmcnl. Of hOlh. shall no! he con:;;lfued as (j
waiver of the default or hrcach.
11. THIS AGREEMENT is A CONTINUING GUARANTY
AND SHALL CONTINUE IN FORCE UNTIL RECEIPT
BY BANK OF WRITTEN NOTICE OF REVOCATION BY
UNDERSIGNED OR RECEIPT OF NOTICE OF
UNDERSIGNED'S DEATH: AND IN EITHER OF SUCH
EVENTS THIS AGREEMENT SHALL CONTINUE IN
EFFECT NEVERTHELESS UNTIL ALL EXiSTING
OBLIGATIONS OF DEBTOR TO BANK ARE PAID: IT
BEING CONTEMPLATED THAT DEBTOR MAY
CREATE OR INCUR OBLIGATIONS, REPAY AND
SUBSEQUENTLY CREATE OR INCUR OBLIGATIONS
WITHOUT NOTICE TO UNDERSIGNED: AND
UNDERSIGNED, BY PERMITTING THIS AGREEMENT
TO REMAIN IN EFFECT, SHALL BE BOUND.
12. This Agreement is freely assignahle and transferable by
Bank; however, the duties and obligations of Undersigned may
not be delegated or transferred by Undersigned without the
written consent of Bank. The rights and privileges of Bank
shall inure to the benefit of its succeSSors ancl assigns, and the
dULies and obligations of Undersigned shall bind
Undersigned's heirs, personal representatives, successors and
assigns.
Signature.s
~ tll he 1(,~<Illy hupl1l1lhls 16th
x
Witness:
x
Attest/Witness:
x
(Corron'He SC<ll)
('I.,2'-lOf{l",1.1l%ll"C'(\.'X)'\I.I)2'()()
027S 82S.,IS3.3ICH I C\.2\lO (01)
071599,1433
.
n II any provision hereof shall for any reason he held
invalid Or unenfo[ccahlc, no other provision shall he
affected therebY, and thiS A~rcement shall he construed oS if
the invalid or l~ncnrorccah\c pnwi~inn h<id n~vcr he:cn (l pari
ofil.
14. As used herein, r1Undcr~j!!ned" rders individually and
cnllcclive!v to all stellers or this Aerc.<.:mcnl, includ;ng 10 \hc
case or ~lOy partnership all gencnll panners (lr such
pmlllct'ship imJiviuwJlly anu culkclIV(;(Y, wnclhcr or onl
-"L1eh [1arlllcrs -"ign he I m.\-', Undersigned shall c<lch he jointly
and severeJl!v hound hv thc lerms hercof, and each \!,encral
panner or ailY panncr<hip executing this Agreemenl shall he
hound herehy bOlh in slIch general partner\ individual and
partnership capacities.
15. This Agreemenl shall in all respect." he govcrncu hy I he
laws or the slale \-vhere Undcrsie:nc(J's Ohlil!~llion~
hereunder arc poyahle as set forth hcrcin~ '-
16. UNDERSIGNED I-I En EIIY EMPOWEns THE
PROTHONOTARY Oil ANY ATTORNEY OF ANY COllin
OF RECORD TO API'EAR FOR lINDEnSIGNED AND TO
CONFESS .JlIDGMENT AS OFTEN AS NECESSARY
AGAINST UNDERSIGNED IN FAVOR OF THE HOLDEn
HEREOF, AS OF ANY TERM, FOR nlE AROYl,:
DESCRIIIED OBLiGATIONS PLUS INTEREST DUE,
TOGETHER WITH COSTS OF SUIT AND AN
ATTORNEY'S COMMISSION EQUAL TO TI-IE LESSEn
OF (A) 20% OF ALL SlICH OBLIGATIONS OR $SO(),
WI-IICHEVER IS GREATER, OR (II) THE MAXIMUM
AMOUNT PERMITTED IIY LAW, WITH RELEASE OF
ALL ERRORS. UNDERSIGNED WAIVES ALL lAWS
EXEMPTING REAL OR PERSONAL PROI'EIHY FROM
EXECUTION.
1999
SC,ll
Address
8 REYNOLDS STREET
MECHANICSBURG, PA. 17055
lndividmll:
x {Scali
!\ddress
Corporclllon or Other 1':lllily
By: (Signmure and Title)
x
(Seal)
By: (Signalure ,1Il(j Tille)
,
(Seal)
Business i\l1drcss
Page2llr2
EXHffilT "C"
KAIN, BROWN & ROBERTS LLP
ATTORNEYS AT lAW
JACK f. RtAM \t
STEVEN M. CARFI
AUDREY E. WOLOSHIN
GAVIN W MARKEY
DAVID J MAiSCH
.JOHN N ELUQ"
119 EAST MARKET STREET
YORK, PENNSYLVANIA 17401-1278
0.- COUNSEL
(717) 843-8968 EXT. 35
FAX (717) 846-6676
E-MAil: jckream@aol.com
JACK F. REAM II
THOMAS 10:. COCHRAN 1842-1860
COCHRAN I). HAY 1860~1883
COCHRAN'" WILl-lAMS \8B3.\S\I?,
COCHRAN. WILLIAMS 6. KAIN 1912-1830
GEORGE HAY KAIN 1830-1937
KAIN, f(AIN Ii. I\AIN 1937-1958
KAIN, K},IN oS. BROWN 1$58-1966
ROBERT..1, BROWN
EDWARD C. ROBERTS
April 6,2005
Mr. Tim R. Sprinkle, President
Mechanicsburg Sports Car Center, Inc.
70S West Simpson Street
Mechanicsburg, P A 17055
Mr. Tim R. Sprinkle
8 Reynolds Street
Mechanicsburg, PA 17055
In Re: Citizens Bank of Penusylvania
Loan #0583294-0101
Borrower- Mec.hanlcsburl! Sports Car Center, Inc.
"Note and Lien of Credit Agreement" dated July 16, 1999
Guarantor-Tim R. Sprinkle
"Guat'anty and Suretyship Agreement" dated July 16, 1999
Dear Mr. Sprinkle:
I have been retained by Citizens Bank of Pennsylvania, assignee of Mellon Bank,
N.A. ("Bank"), in connection with a loan in the amount of $20,000.00 made by Bank to
Mechanicsburg Sports Car Center, Inc. ("Borrower") on July 16, 1999 evidenced by a
"Note and Lien of Credit Agreement" for $20,000.00 dated July 16, ]999 and guanmtied
by Tim R. Sprinkle ("Guarantor") pursuant to a "Guaranty and Suretyship Agreement"
dated July] 6, ] 999, being Loan #0583294-0101 ("Loan"). I have been authorized and
directed by Citizens Bank of Pennsylvania to transmit this communication to you.
Pursuant to the tenns and provisions of the "Note and Lien of Credit Agreement"
dated July 16, 1999 signed by BOlTower, all principal, interest and late charges due and
payable under the "Note and Lien of Credit Agreement" dated July 16, 1999 were due
and payable on July 15,2004. The failure of Borrower to make payment in full of all
principal, interest and late charges due and payable under the "Note and Lien of Credit
Agreement" dated July 16, 1999 constitutes a default under the "Note and Lien of Credit
Agreement" dated July 16, 1999.
Exhibit "e"
)vll rim 1-:' Sprinkle, \'rt:sid<:ll!
~'v\l;(:h;:lIli;.:shllrg Spurls (',lit '~nrer, IlK
IV)r Tim j{> Spril1klt:
April 6, 2005
1',lgt:: :.
This letter is to advise you that unless tbe full amount of principal, imerest and
late charges due and payable under the "Note and Lien of Credit Agreement" dated July
16, 1999 is not received by Bank on or before April 12, 2005, Bank will exercise its legal
and contractual rights and remedies under "Note and Lien of Credit Agreement" dated
J ul y 16, 1999 and under the "Guaranty and Suretyship Agreement" dated J lily] tJ, 1999
against Borrower, Gnarantor and the ,lssets of Borrower and/or Guarantor
As ofthe date of this letter, tbe following amounts are due and owing:
Principal
Interest
Late Charges
Legal fees
Total
$17,31019
$ 870.96
$ 25.00
$ 825 00
$ ] 9,03115
In addition, for each day after the date ofthis letter, you must add $3.60 per day
of interest to the amount set forth above.
In the event Bank begins to exercise its rights and remedies, Borrower and
Guarantor will be liable for all legal fees and costs.
Nothing in this letter constitutes any waiver of Bank's rights and remedies. Bank
hereby expressly reserves all rights and remedies.
Very tw1y yours,
Jack F. Ream
JFR:]mw
cc: Ms .Tudi A Gimigliano, Banking Officer
Citizens Bank of Pennsylvania
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. Complete items 1, 2. and 3. Also complete
item 4 if Restricted Delivery is desired.
. Print your name and address on the-reverse
so that we can return the card to you.
. Attach this card to the back of the mailpiece.
or on the front if space permits.
1. Article Addressed to;-
Mr. Tim R. Sprinkle, President
Mechanicsburg Sports Car Center,
705 West Simpson Street
Mechanicsburg, PA 17055
2.
7002 0460 0002 7311 1699
1 02595-02-M- i 540
PS Form 3811, August 2001
nc.
3. Service Type
JC! ltertifled Mail 0 Express Mail
o Registered D Return Receipt for Merchandise
o Insured Maij 0 C.O.D.
4. Restricted Delivery? (Extra Fee) 0 Yes
Domestic Retllrn Receipt
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A.,
Plaintiff
No. 0[; -/9:<'0
(}(~;tT02-.J
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE,
Defendant
CERTIFICATE OF RESIDENCE
I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, Citizens Bank of
Pennsylvania, assignee of Mellon Bank, N.A., in the above captioned matter hereby
certify the following:
1. Name and Address and Residence of Plaintiff
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A.
525 William Penn Place
Pittsburgh, PA 15259
2. Names and Last Known Address of Defendant
Tim R. Sprinkle
8 Reynolds Street
Mechanicsburg, PA 17055
DATED: APRIL 14, 2005
KAIN, BROWN & ROBERTS LLP
BY:.///~/
-~ack F. Ream, Esquire
119 East Market Street
York, PA 17401
I.D.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail: JackReam@aol.com
Attorney for Plaintiff
CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, N.A.
~
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, NA,
Plaintiff
No. ()S'- 1 C(;)J) {L~ L -( ~ 'U'l--'j
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE,
Defendant
NOTICE OF ENTRY OF JUDGMENT
TO: Tim R. Sprinkle
8 Reynolds Street
Mechanicsburg, PA 17055
(X) NOTICE IS HEREBY GIVEN THAT A JUDGMENT IN THE ABOVE
CAPTIONED MATTER HAS BEEN ENTERED AGAINST YOU IN THE
AMOUNT OF $21,696.99 ON APRIL 14, 2005 AND COSTS OF SUIT.
(X) COPIES OF THE JUDGMENT DOCUMENTS ARE ENCLOSED.
Prothonotary of Cumberland County
Civil Division
By:
If you have any questions regarding this Notice, please contact the attorney for h filing
party being the Plaintiff, CITIZENS BANK OF PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, N.A.
Jack F. Ream, Esquire
Kain, Brown & Roberts LLP
119 East Market Street
York, PA 17401
1.0.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckReam@aol.com
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
ASSIGNEE OF MELLON BANK, N.A.,
Plaintiff
No. 05-1920 Civil Term
Vs.
CONFESSION OF JUDGMENT
FOR MONETARY AMOUNT
TIM R. SPRINKLE,
Defendant
CERTIFICATE OF SERVICE
NOTICE OF ENTRY OF JUDGMENT
I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF MELLON BANK, N.A., hereby certify that on the 19th
day of April 2005, I caused a copy of the "Notice of Entry of Judgment" and "Confession
of Judgment Complaint" to be served upon the following party by United States Mail,
certified mail, return receipt requested, postage prepaid by depositing the "Notice of
Entry of Judgment" and "Confession of Judgment Complaint" in the United States Post
Office in York, Pennsylvania addressed to the following party at the following address:
Tim R. Sprinkle
8 Reynolds Street
Mechanicsburg, PA 17055
CERTIFIED MAIL #7002 0460 7311 1729
DATED: April 19, 2005
KAIN, BROWN & ROBERTS LLP
BY: ~--
~CK ~~;E::;;-
119 East Market Street
York, PA 17401
/.D. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail: JackReam@aol.com
Attorney for Plaintiff
CITIZENS BANK OF
PENNSYLVANIA, ASSIGNEE OF
MELLON BANK, N.A.
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SHERIFF'S RETURN - REGULAR
CASE NO: 2005-01920 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
CITIZENS BANK OF PENNSYLVANIA
VS
SPRINKLE TIM R
CPL. TIMOTHY REITZ
Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within CONFESSION OF JUDGMENT
was served upon
SPRINKLE TIM R
the
DEFENDANT
, at 1809:00 HOURS, on the 26th day of April
2005
at 8 REYNOLDS STREET
a true and attested copy of CONFESSION OF JUDGMENT
together with
MECHANICSBURG, PA 17055
by handing to
TIM R SPRINKLE
and at the same time directing His attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Postage
Surcharge
So Answers:
18.00
7.40
.37
10.00
.00
35.77
'--'0".
//~
',t~ ~"
,- f>'-,~.A':~>~/
R. Thomas Kline
me this 3.........
day of
04/27/2005
KAIN BROWN ROBERTS
/7~-
By: _~-~..
;;; ~e~t~riff
Sworn and Subscribed to before
/
'l'VI"r .2['0 " A.D.
\ }~:-O lYt,jp,. .~
8 othonotary ,