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SHERIFF'S RETURU - R~OU~~R
CASE UOI lSg~-03616 P
COMMOUWEALTH OF PEUNBYLV~NIAI
COUNTY Of r.UMaER~AHP
DAVIS WIL.J..1A.lLCJ,;T AL.
VB.
5TEELTON CAPIT^k-~~I-~L
.-
. AUDRU..9....-bDAI15 __,_____.__._. Sheriff or Deputy Shuiff of
CUMBERLAND c'Junty. PIlnnsyllllinifl, IIho being duly lI110rn according
to 1..11. saya. that hv svrllvd the IIithin WRIT OF SUMMONS
upon STEELtQ~_~HMSYLVANIA CGRPORATIO~
ddendant. at ..1JUIDJDSO- HOURB, on thv 1~ day of ~.ll.llJ.!llt
1 SG, at --.C.UItlU;Jl L A NO SQilli.I Y SHE R I Ef':"_QfFI C f.
\tARLISI,E. PA 17013 _.________-1 mBERLAND
county. Pvnnsyll1ania. by handing to ghQf~JG OARCIA P~~tlI OF
~TEELTON CAPITAL. ~
a true Iind attested copy of the WRIT OF SUI1MONS
and at the same timv dlrecting ~ attention to thv contents thereat.
the
-
Sheriff's COlltBI
DockllUng
Serllic"
Affl.dall it
Surcharge
So ansllersl
R. ThOma-dC.~;;;? ~~t
SI1ITH
16.00
6. Sf>
,00
2.00
.2B.S6 ATTY ALLEN
r vv 06/15/1 '39~
r} Ie ,ql.
by Oil (,t~ &- OIVtl fry'
pu y Sheri
Sworn and BubBcribed to b"fore mv
thiB I?~ day of ~,,,..-I-
19---1i._ A. D.
(La' --.
---~~ 'p~~o~
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III I'1i" ,""111'" ,.,. I'IIt1nllll I'J.I:^,' 1II"'IIIIII'o:Il'AtIIl "IIIII1'1'Y, l'I-:II""\'I'v/lfII/I
, ' , '/I I, 1'1 I, I 'I' "II' 1,,111
\/lI.I.JI\II I , /I^'III~ Mill ',^I.l,\' VI "^VIIl
1.01. I,'" 111,1" \"'1'1' V/lI.I,IY 11111
/1", '/!j
. }J It (1..( /J\~--
'I
,1111 Y "'I I,. I 111111I;11111""
"'lIl.lllrlll I'/II'I'I'^", ,,"H, il """"11\'1 VI/III II
1'111 jlHI dll'llI, /llld lil:nlllll'; d ~ ';/\IIt'l^
"I '/II, II' "I' I '1/1
""'1'11'1':
""'11 II III" 1/"'111 /111"11 II, I'. IIII I II \ 1111 W I tIll I,) II" r"II,1 ii":' llllt I
III" .'I,d"l'l ""I II" II, III III" 11I111Iwlll'l 1''''111'1, ~'IIII 11"'111 111,11 11.'11.."
"il"lll "."1'111',' '''OJ dd\," ilfllfl IllIul'IlIlIpl,111I1 nlld I,,"I,'p "'I" III.,p,.d
I.',' "111"111111 II l~'IIIII'11 dI111llitl,IIP"\ I'Ptnltll,'llf\, nl lIy nlllllllt'~', I'tlld
I I I I II" III l.j I I I I Ill' \, I I II I II1I ,', 1111 I ~" III t , I, I I " II , ,'~ Il I' t , II, I, I, 'I l f) II" I, . 1'1'1
I I 1111I1\ /11,1 "'1111 IIII"llInl V'''I. V'III "Ill ""Itllld 111;11 I r Y"II r,tll 1,1
till HII, Ill" , dn,l 11I,IY I" 'H,,,,.d wi I 11I1I11 "flll IllId " 111"'111111111 IlI;q' I"l
"1111'1",1 ,1'1.1111'; I Y'I,I IY III" 1"1111 I HIIII'IIII 1111111111 11,,1 1"1' r.ll "III,'
"I' " I' . )' ,'I, I 1011" I I II I I" If', 111111 I, I 1111, , II I, II , III ~' ,II 11'1 I , ' I ,'I 1111 I' I I" I I, I r
""I""""" "1' II,,, 1'1,""1111, \'1111 1'/lY 1,''':1: I'''III.:Y 1111 1'1"1/'1:11'1',' 1111
"'1111:1' 1'1'111'1'11 1111""1'1'/\11'1' '1"1 '/'111,
\',," rill'llIl.lI '1'/\1'./: '1'/11 II "/\/'1:11 'I'll '/'11111 I,/\I-/Yf:1l /\'1' '111,'1;, II' Y'"1 11"
'P,T 11111/1: "" 1:11'1\1 /\ I.lItH":II, '1'111:11 YIIII 1:11'1111,11 ':11 '1"1 1)11 '1'/:1,/';1'1111'11': '1'111';
"11'1"1': !II:'I' I'IIf1'1'1I "':/,1)\1 '1", 1'/11111)11'" 1-/111:111: \'1111 "/111 ';1';'1' ',1:':/\1. 1/1':1,1',
c.'llIlIhnr)nnrl ('n1ltll-y ('tlllrt ^.hlllnJfll:rnlur
nlln ('(Hlrthll\lfln (i'IIIIU"O
(;.u-linlo, PiI. 1'/01.1
'1 I 'I~~,lll-r. ~rJlI
1.11 11,'111 "I'llItllIl1"d'." linin" ",10'1 ,'nil", nl IInlfld '1111"1'.
,f'lfPlldnllln "II ",,"1'(1 ,q\lil'\ ,JPlllfllldo'lH Pl'l'lIPrtltlH Illl In,\ I"HIllllln
",.,,,1,,"1,,,,. ""l,'" "",," ",,1,,1.. (JI dllln dll I"IIZII III 1'111'111' dl' I"
I""lti' "" III ""111,""111 Y 1:1""'111,'11"1,,", 1I"I"d d"lt.. 1""""l1lnl '"lil
:11',111"''''1" P'I"1 1111 n PII Ill'/ 'In/HI It PIli ilIH,.,,,,rI'l Y III f'ld'll1l PII 1...
'."11,1 "II "1/111.\ "n,', II... 1\11'\ d,..frqp"jJn II '1lpt 1I11\I','I'lIp',' ;1 liHI ""IIIi"""'"
"II "'1111 Iii .tll~'il. ~:" III ,'I\II'~"ld" Ifill' nl Ilr'I,',I Ilf' HI' f1,'!"!""r1.I, I"
1"'11" 1'1111,11,1 11I1',lldnn r 'Itl,'dl' ,'111':11 IIlIn fI,d,'I' "'Jill.,., lI'ilntJ nl"
,.,,..,11111''''111 /I II,t1lrl,';j/'illll y pnl f'IIiII'lIlIPI" '1111'1"1 n o'Ilfvln '1I1P fin
1"'01101" .'" I" ,..,'1"1"" 01.. d"IIIIII\lI", IH:'I'I:I, 1'111':111'; l'I';I!IIi';U 111111-:110 ()
1'1"11'11:11/\1"::;'1 <1'1'1'0:: III';PI':"III1!; 111I'1)1l'1'/ltl'l'I::: I'(II!/\ IH:'I'I':II,
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1,1.1:\11-: I:::'I'A 111:11/\1111/\ /\ 1111 1\1'''11:1\1111 l/lm:III/\'I'MII:/I'I'I':, ::1 11;;'1'1':11 tlO
'1'11:111: II "'''PI''I::: 1111 /\1"1':/\1111'1, VAV/\ 1':11 I'I':PI:'HI/\ () 1.1,/\/\1,; I'I)I! '1"':I,I:rIHIO A
1./\ '11"1"1/1/\ "IIY/\ 111",-:,"'111" l:i'; /';N"II';II'I'''II I;r:"/II'I'A AIlA"o "^,IA /\VP.tltri"^,l
I tr '"111'; !I I: "111:1": , '1111::/,;, :11 I II 1\1; I 1;"'1-:/1" I /\ 1.1:':/\ I, ,
('ulJdJ('It l.ll1r1 C'nllllt y ('ollrt-. ^dtlltl1lr~trRt()r
l)lIn ('nil! I hOIlIif1 n'lllilYf!
('flr)lrJI(I, fill. J'I01.1
., I 7-~,IO-(,;100
~~-
4. Ooor9o J. onroin lhoroinnftor roforrod to ns "Unroia")
ilJ nn individual oili:Uln of I'onnnyl.van.la wilh otrioOIl al:
717 Markel: Rl:reot, Ruito ~IO, \,ol1\oyno, I"HllllJylvonln.
Gnrda is tho dhnirl1\nn nnd prosldonl: of l:Hooll:on Cnpitnl.
5. 'I'ho pnvisos don.lr.n\t.o obl:nln rlnoncl,n'l by wny of a
l1\or.ttjngo on tho lIotol In unlllr. to llllpr.ovlJ nnd to ronoval:": I:he
fnoU.ily nnd to rorlnnn<!1l t,h<l then oxlntlng indnhtodneslI. ^
Lonn .In tho nlnount of $~. 7 IIlI11hln woa ROU<lht.
Ii. 'I'hn DoviROII or.r.nn~,o'l for. BtnuLton cop.!t"L to oct all a
Inortgngo broknr by ohtnlnln<J on bohnlf of tho DovillOR a loon
cOl1\mitl11ent frol1\ n londnr for $~. 'I 11\i11ion. 'I'hill ngJ:ool11enl: WIIR
ontorod into on or obout ,July 15, 1993. 'rho nqroolllont J:oquirod
tho Dnviaoll to 111,lko n $~7,OOO.f)O dopOllit nnd gove 61:0011:0n Capital
60 day a wil:hin which to obtnin th<l roquiRito financing. Tho 60
cloy pedod would ollP.!re 6ep~.l!l11b<lr 15, 1993. In I:ho ovonl: 61:001-
ton Capitn1 obtnlned n cOl11l11itlllont, It WOII to he paid a cOl11l11iRllion
of 2~ o~ the I11nxil11UI11 loon nl11ount. [n tho ovollt steelton Capital
fail.<ld to obtnin n cOlntnltlllont through no fnull of tho Dovillell,
then nll of the deposit, oxcept n nonrefundable feo of $750,
wall to be roturnod to tho DnvlRos. A copy of the lIlortgage
brokeragR agroel11ent, denol11inatod by tho partleR as a "Morl:gage
AuthoJ:ization," is nttached hereto aR Exhibit A.
,
~3~
',. Oil t,hn "nlnA <IllY Ml thl! MortqllglJ Mll:hol'l 1\,,1: I on II"A
0111""1'1]<1 1111:0, I: hA ~l/\ rHnll IIm'!J\<hll\ tho Mll:hor 11'.111:1011 Allah t:hllt thlJ
fl~" , 000 <\opllfd I: Willi parm \1'.1:0<1 to ba pl\ld hy 1\ $ HI,uOO ohooll. /lnd
Ih.. o)(tHlul".lon oJ 11 $I~,OOO delnlln<\ oonroAsion noto. ^ copy of
Ihlll I\mol1<lm"nl In I1Ul1ehml hereto liB f;xhlbH, 11.
n. 0" 0" nbollt I1npt"mbnr Iii, 1'l'J:l, th.. pl1rtlnll n<j111n
I1m""llm\ I'hn MIllt""'I" ^lllhorl 7.1\1' \0", 'l'ldll I1l11n"dlllnlll". I1rrRol:,n<l
I'nrt'jlln 1'111111\1'\,,1 jllTnnqnlll"I1l".A bnlw"nll th" p"..I' 1,,", I.n., In~
"",,"nn,\ n prlll'r>nnlll'l rn", "II'" bllt pdn<'ipl1lly "ntvo<l to A)(l:on<l
nl:nnll"..ol1 enp II n I 'A l".IIIIO rll.. obtl\llIllI</ I:ho lII<lI-t</I1"o r J 111\11<: 111'1 from
""pt"lIIbnr I", 1I11tll odobor 10, I<)<)/' ^ ':opy of tlllA Ilmnlldlllont ill
nttl1"'ln,1 hnt'"lo nA I';xhlblt c,
<). ""r1"" l:hn Lllllo for /ll'"n]l:oll cnplt-.I1I'A pot'forml1lwo,
rJllndl1, on bnhnlf of stonltoll Cl1pltl1l, rn'l""ntn,1 ('hn Ill1v!fu'" to
1.:ooporl1tp In 11 1111mbnr of WI1Y" 1:0 0l>tl11n I:he fll1l1l1dn<j. Fot'
")(l1mpl.n, <lrwlIlllnlltn nlll'h /HI Intt:nrs or ,'rOlIII: 1111<1 bl1nk rorornncaB
wnt'n rl'l'lllnnl:nd nl1'\ pt'ovl,lod. Gnrr:111 nlAll IIlAIAl:n,1 thllt 11 flnAn-
01111 1111,llt, or pt'o forml1, or thn /lot,,! bn p"rformlil,1 by ono Robert
Moyer (hnr" 1'1>' (l:nr roforrod 1:0 I1A "Mnyor")
Upon Informl1tlon And
I>nllnr, Mnyor In 11 clono pr.H'sonl11 frll1lld of Gnl'cln,
10. '1'110 crH1t of tho l1u,ll\:' provldod hy Moynr WI1A promiRad to
he $1,'100 (S.ce I';xhlhlt II to thla Complaint), but the tlaviaea have
,
In fnet heen hi Ilnd $9,'100 for the 1111dlt, of whleh $B,OOO has
I>nnn pAI,1. llllrlng I:h" eOIlt'fll? of Sl:eelton Cl1pltal'B performAnce,
c;"rdn prnflA(>I! thn llnvlAoA to Agrp.e thl1t tho grAnt of a loan be
.
~4-
crllnllll: lonl!l" <HI I:hn 1I0l:nl'II hlrlnq ot MnY8l.' 1111 IIIl "oooUhl:llnl: tor
nl: IOllAI: ana yonI.'.
II. on llr nhout r;""IUIII"'11' I'i, i'Jill, Rl:oolt:on Cllplt:nl SQllqht: to
nmnnll thn Mot't</n,qn A!rthorl1\IIUon "I1ronmnnt "11" In. ^n bnforo, tho
,,,'I no I pn I 'Ion \. of the nmnndmenl: WII!I to ell tend the t I mn fot pnr-
formlltwn hy IH,aolton Cnp!I'II1. Bpnolflc)1111~, Rtnelton Cllpltnl
nnlll/ht' 100xlol111 tho limo fnr'pnrfonnnl1l'o fl'ClInOclnbnr J, 1'1'11
ul1t11 ,Jnllunry II, I 'J'l~, 'I'llI' n,"oll,lmnll!. II I no 1'1"'1'11 ro,. Ihllt tho
",'lVlno" nl/roo lhnt nl1Y Innll bn cnlldlllnllod UpOI1 !hnlr hiring or
v"~ ^"no"llIton, 1,101., to provldn fllllllwlnl eOl1nult-ll1q RnrvlenR nl1d
IIrlv\<!n, UpOIl IlIfnnnntloll "l1ll lJAllnf, y,f ^RAoell\!nfl IR opernt:ed
by M.'yot', '1'110 <1Inn I1d rnn II t, nlRo rO'lulrerl thn IJilVlAoR to Agree thAt,
tllo 10lln ho "ol1,ll! I elllnll Upol1 tho I r II I I.' Il1g II mil t'knt Ing conRullAllt
illlel l:ho It, hi r 1111/ II mnllll'loll1ollt eompllny II"I:UII It Y to nltl the Ilote I
If, III III1Y 101111 YOllr, tho IJllvlBeR cOlfld nol: rAeat II \:Jlfdget Bpool-
rlod hy oll:hl"t' or' both V" ^AAocllltf~R ntHI the lenrlor. 'rho llllVlsOB
011 d not: IIqro.. to th I A nmollelmont, novor n(~cept:ed It, And never
R I qnod It., ^ copy of th I A propoRnd, lInl\cc"pt"d Amendment: IB
,,It'lIehnd IIIl I':xblhll: 1':,
\;1. 'I'ho IJnv IRoA prompt! y 11/1<\ prnpl'lr 1 y pprformed II 11 t,"'klil
t.hlll: w"ro AAkp<l of thpll1 by fit.f'!elt.on Cllpltnl from ,July Ui, 1993,
t.ho date tho Mnrt.qllqn ^lfthnrl~Atlon WAS I'lllocuted, until October
,
10, 19Q3, thl'l dRte tho MortgRgo ^llthorl~At:lon oxplred.
~6-
D. ny 10t.t,lIr '\/\\:OIlllnuombnr :1.0, 1991, Rl:llo1l:011 c/\pll:/\l
Inform"'\ t.hn llllvlana thllt- t.ho\1' conduct, h"d m/\,Io 11: lmpOlllllb\1!l
(or Rl:flotton cllplt.1l1 1:0 oh!:/\In II 10/\n, I:h....1: I:holr (lOnlhlct. hlld
tllrmlnlll:li'll tho Horl'.<jl\qo fluthorlul:lon, Ilnd thllt st,ol!llton cApll:AI
11I1:on,lo<l to ullah UII~ $1r"OOO depoa It uheck IInd to o:.<euuto 011 tho
)lI<lqmnnt noto unlEHla tho llAVIAllS pAlll tho commlAslon th"t Bteol-
t'OIl copl to I wIIIII,I hov" nnrll,,,1 011 tho 1 nnUOIll!r> or 0 ,'ommlt.mol1t, IlI1
Olll11Ullt 0 ( $rd, lOll,
,
collt'l'I' I
Uocl~~~tQrY~JUdymont
H. 'I'ho DllvlAnA promptlY 1l11<1 propr>t'ly pr:>donned All I:asks
\:.II/\t \IIoro Ill'lk",r\ O( thr>m hy r;lnell:on copltlll from .July Ir" 1993,
the d/\te tho Mortqllqr> Mlthor 17,Ilt 1011 wlla Elxocutod, unt 11 octohor
.\0, 1<)9J, thn dol'o tllP. MOI'tqAq" l\uthorl7.At 1'111 explre<l.
1';. Rtpnlton CApitAl mAdn no complAint t1urlnq thlA time
th/\t the IlAvlAoa wore not promptlY An<l properlY performing 1111
the tllak" thnt worr:> nRk",1 of th"m.
If,. r,tr>olt.on cnpltill hAll until outoher 30, 19<)J to llbtAIII A
lOAn commlt.mont t.hnt. mr>t tho torma App.clrlE'<I by tho pArtlo11 In
t.he Mortqnqn I\ul.hor I 7.l\t Ion. fitnp I ton Cnp ItA I (III led to obl:llln
rmuh II lOAn r:omm 1 l.mnnt I,y october JO, 19<):\. stee I ton Cllpl tAl' B
fnllure \:0 <10 ~o WAa not cAUAe<l by nny wrongful conduct of the
IlnvlFlea.
"1\"
1'1. 'I'he Mortq"lJlt Mlthol'! uUon 811plud bV lh term,. on
l)rtl'nhAr :'0, I'll) I.
WIIF./IF.I"OIlF., 11\II'RII/'Inl: t.o t.he PsnnRV I v"n l" neel n r"tory ,1udqment
M.t, 4~ p",c.:,Il. ,U '111'1 nt: Rllq., the tJ'nlntlfffl WIIII/'Im C, fJ/'IvIR
fln.1 (llllly Y. IJl1vlR "PAp.wt:rully nRk tho Court to <lod,1ro thl1t
IlIny IlI'O nllt.lllo.1 to tlln l'olllrl1 of t,hnlr dllpORII: 1111<1 1'110 <100\1-
mnll\- H ov I ,lolI'l III" 1110 nl1mo, J ORA ~'I riO t.o hn l'otI1I110<' hy Rtolllton
l'Il/l\l'IlI, 1111,1 ror 'H"'II olllnl: ro'lnr /'lR 1'lIn ('ollrt <1..0I11R nppro-
pI' III tn,
COIIN'l' I I
I3t'ltlll,lh lJL^lJ(ltluy colltr.a<.,:t .lJy 11 tqq HQILt:,ap 1 tlSJ.
In. fltnnJt.clll CIlplt'Il1 WI1R nmploynrl hy tlln llllvlRea to I\ot nR
thnlr "qent In pI'O.!urlll" A 101'111 oommltmellt to be URRd In connec-
t Ion with l:hn 1I0tnl.
l!). Rtoolton ('l1plbll ow",1 An ulI<llvldp<l duty or loynlty to
the llllvlRnR I/lfHlrlll' I1n ohl'l1!lIll1q 11 101111 "onllnltmellt WAR concerned.
~lJ. fly noold n" to \Inn lho MOI't""'l" Mltllorl1.lltlon Ilqreement
IlR Il vI'lIl<:lo hy wllldl to nhtllln nmploymnnt for f>loYt>l', Stl~elt<Jn
CAp1t/'l1 rllllod to \lRn Ib~ hFlRt effol'tR on belli'll( or tll" IlllvlRea
MIll :leopl1nlt1.nd thn IntoroRtR of the Ollvla!:'A by pre(l"rrlnq thORO
or Mp.ynr 1I11d Itnr.> I f,
n. 1Ii111 :>toolton Cllplt:fll ActOll l.eAlouRly AS the IIgent DC
tho llIlVIROfl, 11 JOiln <!ommlt.mont would hllvn boen obtllinl"d. III Any
evr.>nt, tho 1l"vlnnR hAvo 10RI:. VlIlUllblo t:lme !n obtlllnlng thl.!
,
.'/-
cloall'ed t!oml11itmont by vlrtllo or BteeltrHl Cnplbll'lJ improper
prOAOlJlltlon or itn n"anoy 1'.0 lllJtltin rltllttlOinq.
WIIJ1:RF.fOllF., tho plninurrn Willill," e. Uavis "nil 8"l1y V.
tlnvln rOApootrlllly prny rot' Iln Ilw"rcl in flXl.lOll1l0( .30,000.00
,
In dllmAqeA ror tllfl hrnlll!h of contrAot hy stoB lton cApi till 111111 ror
Rlwh other rnllpr IIA I:ho COllrt deomn Ilpproprillte.
COllN'I' III
Prench <Ie f'llluuilll'Y Ulj!;y /.>y S\:e~l!;onGAPlt/.ll
~~, fil:nolt.oll cllpllnl WIIR nl1lpJoynd hy tho tlnviRPR"to AOI: All
their ngolll: III pro(!urlllq n 10ntl COl1ll11ltl1111tlt 1:0 hI'! uRed in oonnoo-
1:lon wil:h tho 1I0t.<'I.
~1. fltnnlton cnpltnl o '^,'" 1 1111 UtI,llvicloll lIut}' of 10Ylll!:y ~o
UIll IlllvlnoA Innorl1r I1A obtnil1inq 11 lOAn cOl11m!tmont W<U1 conc'lrned.
~~. ny no"k Inq to UAO tho Mortqllqe AlIthorl7.Ilt ion Agret>ment
I1A Il vf.lhlclt> hy whleh to obtAin employm"lIt ror Meyer, Gteelton
C,1pltlll rnllpcl \;'.0 lIno ItA bPAt. effort!! on bohnlf of tho llnvises
nml Jpopnnll?nd thp Il1tpt'''AtA or tho IJ.1vIRI"A hy pre(on:ing thoRe
or Moyet.' nncl I tRO I r,
~O;. IInd I>t"" I ton Cnp\ till Actod 7,"n I OUAI Y AA the Agent of
tho llnvlAoA. n lonn commItment. wOllld hnve boon obt.Ained. In Any
Avent. tho Ilnvll'l"A hilvP 10At v,'lUllblf.l tlmp in ob~.illning the
d'lAlrerJ Gommltm"llt by virtue of steelton C'npit"l's improper
proRecution of ItA ilqP/WY to obtllin finAncIng.
-11-
WIlr:/tJl:l"o/ll1;, tho pl/llntlrrs WIlllllm c. lJ/lvls IInd RAlly V.
/)IIvlll respeotrully prllY for 1111 IIwlIrd ill OK~OKB of *10,000,00
'\1 lJompansll tory "n'""goA "'Ill in plln It'l Vn dnllhlll(!/1
ror tll" IIt'oll<)lI of f 1<luoillry dllty by Ilteeltoll Cllpitlll "nd Cor
AlIch othor 1'01 lor nA tho Court doeml'l AppropriAte.
COllN'I' IV
f'nllld /Jy J, t13<llt.ulJ CI\IJ \t1JJ.
;!I\. Fltoolton Cl\pltl\l Infnnn"d till' Il"'1iRnA thllt nllmeroua
cloCllmtltlla, ntu., Worn n"""RRnry to oht-nlll .-IlIllllolnq. Ilteelton
Cllpltnl AIAo forcE". tho IIIlvlAnA to hllvn Iln Iludlt, or pro formn,
cOll'Iuctnd hy Mnyo r.
n, nh>nlton C,'pltI11 Int_on,lfJlI tho IlllvlReR to rnly on ita
Informlltlon I\n,I ntllt"mnntR Ilnd thoy did 1'10 rely by doing 1111 thllt
WI\R IIAkod of thom.
~n, lIpon Informntlon Iwd bnliOf, stooll:on CllpltAl'll trlle
pUrpoAe In hllvlnq tho ll/lvlAeA provide tho InrormnUon, etc., WIIS
not In fllct tn olltl1ln 11 10lln commltmont, hut rntller to "string
ouI:" tlln IOlln Ilppl it!lIt.lon IInd commll:mont procOAA for IIIl lcng liS
pOAlllbl" In ordor to (J) provide IIA much componRlltlon to Meyer lIa
pORAlble, IHHI P) to I"nlllllo stOE'lton Cllpltnl/r.llrela to q.1ln Ilome
cont 1',' 1 ovo I' thn Opel'lI t.I on 0 r tho 1101.0. tll rouqh ~oYEll'.
\
" "
~9-
~'1. '1'lIn "A//lInnb, fot' IlItormlll:lcHl Wore t"lnely mlldo III t:lll1t
I:llny Wnrn rn/plnAtA" fo.' 1111 lIauriot' tllll'pono whl,)1I Willi oonollllllld
f"II," the IIIIVIA"R, 1111" Ih,. PI'omlnoll Inlld" by stooltoll CIIPltll1 Wero
",,'.10 with 110 111""111:1011 of pnrformlllg tllllln Ulltll Iltt>nltoll C"pl_
I""'n frllll.llllnllt pllrponn Wlln lIuldoved.
.10. III1IIIlI:I>olhm CllpltllllH1ted ~"lIloUBly IIn the IIgel1t of
Ihn IlllvlAoR, 11 10,," ""l11l11lll11nlll: WOlll,1 hl1vn hnnllol>l:llflln". 1111ll1Y
nvnlll', !:hn Ill1vlnnn h"vn lonl' Vl1ll1l1hl" t-.ll11n ill nhtl1ltdllq tll..
""Alrnd ,. r 1111 111 1 1 1110111' hy vlrll'n of Hl:nolt-OIl Cl1pltlll'R fl'llUII III
"1111'1 IIr, I n'l 11 lon'," "hn /'"vIAOn 1111" "AI:rlll"llIq nllt" thn IOIlIlIlPPli~
1'111'1011 1111" I'Ollllllltl1101ll' PI'oeoRA,
WII";IlF:FO/lF:, lito pllllIIII rro Will 111111 C, Il,WIR Ill'" Rill Iy V. Illlvln
'-"npnd.flll Iy Pt"y fot 1111 I1WI11'rl JII ellcll"" of ":i{) 000.00 in
,'rIlIlPIJ'lRlll:o,'y rI"I11I1'lnn 1111r1 j n plInJ. tlvo dllm"'1oll
fo,- I:hll frllurI COllll11ltt:"'d UP/lll I:hll IlllvJRnR hy Ma"Hon CIIl>i1:II1 IIl1d
for RIII:h othor rill IOf nA I.hl> ('ollrl: rlol>I11R IIpprnprlllte.
COliN'!' V
), ntQ" r:QI."QIlr;Q./,Jy_. GQ rGla
11. Stnnltoll Cllpitlll WIlS obliglltnd by uontt'/lol: to USIl its
hnnt orrortA to obl:llln II IOlln commltmClnt 111111 to SUbordinAte Hs
OWn Inl:llronts t,o thoAa of tho \JllvlnuA.
-10-
H. ^" 1111 1I'101lt nf the lJ"vIRe", /1tellJtul1 Cllplt"l owell the
tIIlVII!"'/! "" 1I11/llvldo" duty of lOYlllty with reRplwt to t:hll Rublllct
mlltl:nr of tho I1qOIlOY 1111,1 \:.0 AuburdlllAte ItR own intornsts, /llId
tho IlltereAtA of ot'IlH'A, to the IntereAts of the Illlvises.
):J, Gl1rull1 I'Iroll'lfully, mllllclouAly, 1111,1 without Justifiua-
\:1011 IlIduced stAAl ton Cftpltlll 1:0 bre/lch I:heRe l10lltrlwltllll /lnd
rl'hwlnry ,Iullon 1-0 tho IJovtnon, lIin p1lrpllnoA In 1llllu..,lnq tho
I't'r>".'hnn wnl.n 10 (I) prov Idn nn l1Jud, COlllpolHlnllon to Moyor ns
pnRnlhlo, nil" (:>) to ol1obln 111-0011:011 I.'opll'nl/(;or,"o 1:0 ql1ln Aome
"l)lIt '.01 llVn,' tho oPO"OUlllI or Iho IIllh'l throllqh Moyor,
'14. I1tnoll:on Copl!:111 dl,l broodl thonp. '~()I1I'rol!tunl IInd
r 1.lul! i nry dut IAn.
'Iii, 1I11r1 Rtoolton Cnpltlll oet,o,l ?,O.lJOURly IIA thA IIgenl: of
Iho tJl1vlRoR, n JOlin commltmon\: wouJ,l hllvo boen oh\:lIlned. In /lny
ovon\:, the OI1VIRoA hl1vo Ion\: VAIUAblo time In obtAining \:ho
,lonlnHl cllmmlhnont. by vlrtuo of stooltoll cnpltl1J'n brollchoR of
contrAc\: IInd rlduclllry duty. '!'hoAe (ll1mllqnn wern prl)xlmntoly
cnllRod by t.hn wronqfl.ll, mllllnloUR, IItld unjuAtl rtlltl conduct of
lOor!!ln,
Wllr:rll,FOHr:. tho plolnt! rrR wi lIlom t:, /lovln IItl,l SAlly Y.
/lllvlfl rp.npectrully prny fOl' An ;\wnrd 111 C!lU1Hnl1 of $30,000.00
In componnntory ""ml1qoR nlld 1n punitive dnmnges
for Gllrcll1'n lntorfnronco with tlw r~ontractlllll and flduoiary
tllIt I ea owed to thr>m by stOE' \ton Cilp I till nnd ['It" nuch other reiler
1111 I:ho Court <loomll nPP"oprlAI'.a.
~H-
COUtl'I' VI
I'
I
,
Ji'r 1\ \Idn.}) yJJ lIre.iA
31\. staA 11:.011 Clip \till through Gl\ruia inCol'mod the UIIV llls.
thAI: numflrOun [lo?umAnlfl, At'J., were nfleeasAry t,r) obI:" ln n.
nl1llUing. Rto91tol1 CAplt,nl Also foroe[! the lll\viaAr. to hAVO 1'111
nlltll 1:., or pro formn, eOll,luetAd by Meypr.
:1'1. rll'nplhll1 Cllpltlll /l11[! (illr"lll I 11 tA11<1 o<! thA IJllvlooR 1:0
rply on Itn Il1rOf"lnllt Inn 1111,1 ntnh'l1\pnt-rl 11111\ t.hny [11." fin r..ly hy
[10111'1 All thl\t Wlln IInk,,,1 of UI"'1\,
IR, lJpol1 Il1formlltlol1 IIn[! \1,,11,,1', ntnn1ton cnplt:AI'n t,nlo
purpoA" In hAVII1q th" Ilnvlnnn provl"n thn Infot'l1\IIHol1. etc., wlln
110t In fllct to nl>lnll1 II IOlln COl1l11\\tIllPl1t, but rllthul' to "ntrll1q
olll" tho Inlll1 nppl k"Uol1 IIn" commllmol1t proe"flfI for AR long liS
ponRlbl" III or<I"l' to (I) provide nn mueh compel1f1nUol1 to MeV'lr an
ponAlhl", Al1d (2) to PIIAhlp 9te91tol1 cnpitnl/Gnrcin to gAin somB
cOl1trol UVnr the opernUon of the Hotel thro\lqh Moyer.
:\9, 'J'hn rn<juefltfl for informAtlol1 wero flllo...ly mlldo In thlll:
thny wero rn<ju"ntcHI for 0111 ul terlor p\lrpofl~ which Wlln ,'ol1cellled
from thA llAvlnAA, nl1[1 thn promiRen mndo hy stenlton cnpitlll were
m"de with 110 intpnUon of porforming them \lntil RI:oell:on capl-
till's !rll\ldul9nt purpOflA WAn Achieved.
HQJWIMLA~IiOBlJA'l1O.lf
p'or and in aonsJ,deration o{ t110 lIervJ.c:es to be render"'d by S'l'III1LTON
CAPI'I'AL, L'I'IJ., II Penllsylvania car/lorat.ton ("SLeelton"), with
mailing IIddress ,at '11" Market Stroot,. Suite 2LOI T,emoyne, PA
17043-1581 and WIr.r.rAJf C. DAVrll AND illS WIFE, RM,T,V V. DAVIR
Jointly IInd sliverally /Iereinattar sometimes called "narrower, with
mailing address clo Allen II. Smit/" Esquire, 4" N,ntll /Juke Streetl
York, PA 17401, norrowor heroby grants unto Staelton the cole and
exc:luslve r.lght (tile "E.'xclusive Rlg/.t") to seek, tlnd, ltlf.<Ue,
make, or ot/,erwJlle obtain a c:omm1tmollt (tile "Commitment") {or a
mortgllge Ol" deed o{ trust (tile "LolJn") on t/le rell1 property (tile
"l'r'o/lerty,,) descrHled in and substantially pureuant to tile terms
and condlt1onll contained In tllo attllclled P:xllHlit "A" (wllicll .is
Inc!orporated lIel'ein and made a part horoo{) or upon any otller termll
and candit10nll IJIl narrower acceptll (tile "otller Commitment").
S,tmtitsJIL11lUtJ..L1JAY.!LI.9L-1LJJ!1U!J4..JJLJ1..i.JltY-ilD L.sJ.ilYJ1_h:gm,J.he date
t;lHlLtJJJ1LlIgreemelll-.l/L/H;J;!JJJ.tmL1JY-ill-Dlltll!JJLhqr.W&_t;1J!LJJole 1ll11i
fVf9.J..u11l.YJi,XJ flhLJ&_JJJ1!Jk..,-'J.l.I!L-J. tlJlJJ!L--.l11!'Jk.!1.0JL.!JtJJ!1Dl'l6jJ ob t llio-MiX.
lI/'JJLllJ,J.,~lI1ln.J..tnHJn.t.LlLll--.U1JiUw.1nglJJ.l.. loan { ll.l...-.Jlli2tl!u1ge (s ) .l.J.U:...t~
gg!1r1lP.l.LJ; lJ!lLJ.JU.JI fiLSlI'---i llLliIJ:!LtSLh!1_Iil!1S;JJred by .JIny-..m:..J!lJ 0 ( the
eI-9~~ndlor anY--!1X~Jng-9~~jlld!!;~acquired improvements
thgr.!1tQ...JUJ!J.....J;,hereon...MD SIfALL DE Af/lLIJLEliXI'1'1&JLTQ ~'I/E FE~
SEl.'{:n:nJL1Jf.JlEl1LB.~.LQLJf'LQJLTJlmLjJIJQlL~llLQJJ1JjJ..X11lll1.X...
fitf.lJ.fKJ.f/G. LOM... MORTGM.;E. Af/J2j..Q/L.XllUS7' DE&ILJ~.lililLjJjRANG!.'D.
tJ.EfiQXll1J.'E~QlJSiIl7'. FOUND. IS~Jl.EIL-11ftD!.'. OFFERED. GRANTED. QB.
Q'J.'llEBw.n;fLQJJXAI1iE~_~!.lD.I Nf,L'fJJIL_D.QBJlQWlllL=-_J)1JBIliSJ. TI/ E TERM OF
T1ll~m.1li'Jj,'~lllJiSL1l1JL...EXTENSION (S) 7'11 lilBEQL..
II/ connection witll tile l'roEJosed Loan, steel ton wiil do the
following:
1. IIssist tile Borrower II/Jei/or tile Borrower's /Ittorney lind/or
accountant ("Advisors") in preparing tile necessary documentation,
write-ups, and or 10lln application(s);
2. have the Exclusive Right to arrange or make any loan or
{.II/ancing secured or to be secured by all or part. o{ the Property;
/Jnd
3. use its best efforts to obtain II loan commitment or
commi tments (or the Loan described in Exllibi t "A" hereof.
steelton Shill,! be free to seek out any lender(s) andlor lender
participant (s) and to exc/18nge any and all .information IIbout the
Dorrower, tile Property, and/or any mlltter(s) relllted thereto.
A
1/It'1e two
StBeHo/l sl/ltll 111/(1 will 1101. 1m required to IIttest to ti,e 1l00llrltoy,
complete/less, or Vllliel lty of III1Y stlll.nmO/lt IIbout the Borrower, the
llro1lf/rtYj oxisUllg or propolln,' ImproVnmalll.1I theroto, the neoessllry
or requ red govorllmelll.n I IIpp,'ovn III 1.0 cOIIlIl.ruct, own, lind/or
oporllte 1.110 PI-o/lRrty, 1./10 flIIIIIIO III I f'HllIlhllity of sllch operlltion
lII/cI/or of UIfl 1,01111, t/lf/ cO/ld/l.lo11 of I.he Property, etc.
lIorrower agreell ~o mnke 110 "ftort(s) - elllrlllel the term of tills
Agreemellt - (/) to ohtnl,/I, produce, or seCllra "'IIY commttmollt(s)
Imel/or lon/l (s) secul-ad or to be SEJ<:uroel by nJl or part of tho
l'ropel-ty thru their/Its OWII nct 01' 1.1/1"11 the act of IIny otller
persoll, Urm, or corporll tloll; (:I) to IIsslgII, e/lcumber, or pledge or
III IIIIY WilY chllllgO U,O e'lllitllblf/ lI/1d/or ImT/otlcllll tHlo lind/or
Interost III tile l'roper'ty (wlILch is /lOW helel by BorrOl~er as tellants
hy t/", AIIUrot.I,m II/Id 1I0t. 1111 I:AIIII/lI,8 1/1 ()ommoll). '1'0 /)0 sa IS AN
I Hm:IJI A'I'f: m:f'AtJ1.'I' IIY /lO/l/WWJi:11 IlJi:IlJi:UNIJJi:1l AND A DIlJi:A<.'1I DE' 'l'IIIS
AGllJi:ENJi:N'I'.
No guarallty or warrallty Is mllde hy Stoe1tOIl thllt III1Y commitment or
UIIIIT/c.llIg will he olltll.llled or mnclElI OT/ly thaI. steeJton w11l use its
Ilest efforts to seek, f.llld, lsslle, milke, or otherwise obtain II
commltmellt for the 1,0all described 111 the attached Ji:xhibH "A".
Borrower IIgrees to IIccept IInd to set.tle upon II comm.ltment for
/I I,olln substnntlally undor nnd SUbject to IJnd contingent upon the
termll and conditions cOlltniner.l In f:xIILb.it "A" hereof the
Comml tmen I. - or tha I. once 80rrowel' accepts any other commi tmen I.
(the Other Comm.ltment); then SteeJtOIl hilS earned and is due its
fee(s) as herein IJrovided.
Borrower agrees to promptly furnish such data and exhibits as
steelton and/or any lender( s) acting therewith /nay reasonabl)'
reguest cOllcerllillg Borrower and/or the Property. All documents,
oraw,ingsl blueprints, nppraisals, etc. ("Loan /)ocumentatioll")
submitted to obtain tile 1,0all Commitment shall become the exclusive
property of Stee1ton and Steelton .is under 110 obi igat.lon or duty to
return tile 1,0an Documelltation to /lnyollo. Further, Steel ton //lay
copyrigllt the 1,0an Request which it prepares to seek finllncJng.
Additionally, Borrower agrees to nttempt in good faith to comply
with the terms and conditions of any loan appl.ication, letter of
intent, exclusive authorization to deliver a commitment, and/or
loall commi tmen I. for the I,oan - which Borrot~er executes. Borrower
further agrees to deposi t such security, "gvld faith", or escrow
deposit(s) as such agreement(s) reguire and to pay 1111 of the
agreed and/or usu/ll disbursements normal IInd inc.ident to ,'Jatd
agreement(s) and/or the Loan closing; inclUding without limitlltion,
appraisal [eF.JS, credit report charges, title insurance chllrges IInd
llremiums, engineering reports and studies, recording IInd tiling
[ees, mortgage stamps or taxes, survey charges, etc.
page tl,roo
/Jon"ower rep/'fJllents /In" Warr/lntR tllat any oral or written
statemantR or informllt Lon or exllLbLtIr Rupplied or mil de by thIJ
/Jorrowflr to Steelton flnd/ol" /lIJy lender(R} tllerew1l"II or therefor
is/llrfl true, COlToot, /lnd clOmplote.
In tlm event tllnt fitea!ton RIll/II olJtnin or mnka II commitment or
commitm611 ts for tllo I,olln Rubstan t Ln lIy under t/IU ternla and
cOlldi t/cmR of f:xhllll t "A' (tile CommLtmcmt) or upon llllY other terms
IIlld cund it 10nR IIccoEJted /ly lIorrower (tile otller commitment JI
IJorrower ngrees 1:0 pny to fitee!ton (II "I,Ollll Plncamellt Fee or Fe'9s")
- of two (2'1 parccl/lt of tll9 mllximum loan IImoullt - olle-II/llf (1/2)
UpOIl UIH i,Bsullnca of t/m Commitment or nccoptanco of the otller
Commitment fl/ld tllo /lalllll<ie UEUJ/I tlm earl/or ot' t/m settlement of
sllid finall<iing(s} or tllirty dllYs tllerell(ter.
All I'lacemont E'aeB lira to bo pnLd to Stooll;oll IJY <ills/ders or
cert;ifJ,ec1 <illec'lue, wira trnlls[or, title compllny/ngent escrow
c/JOc'lUO, or oscrow cllec'lU<l of tllo settlomellt ngent, Additionally,
StoeHon may apply dLrently to nnd receive (11l'ectly t'1"Om nny
lender, tHle <iompally/a'lent, esCl'ow or settlement agent its
I'lacement Fees Wltll a EJIlotooopy of tIlls Agreement being BorrOWer's
irrevocable eBcrow or settlement instructions autllorizing direct
pnymont to steelton of .its Plaoement Feeo and indemnifying and
holding IIarmleos any lendel"(S), title comEI/lIly/agent, settlement
agen t, and/or otller person, firm, or oonJoration from IInd IIgainst
any and all liability, loss, cost, or expense - including leglll
feos and costs - [or sucll direct disbursement(s}.
1I0rrower understands and agrees tll/lt Steelton may receive
addit/onal fees from a lendar or lenders tor servicing and/or
originating 10llne tor BorrOWer or AffLUnted Entities - without
fur tiler disc losure to anyone. Also, Steel ton may be the lendel' or
be a pllrUclpant tllerewith and be compensated therefor - in
add.ition to receiving the Placement Fees.
W.ith tile execuUon o[ tllis Agreement, Borrower deposits with
SteeltOIl tile l1um of $27,000.00 (the "Good Faith Depos.it or
Deposit") /,}Y_.JlAlJ.hJ.ers o!:.......illlI'J;).lli.r;Ls;;h!J!;SJJJe payaQle to SteeltOll
rdJD1.t1llw_-.Ltg~fHlI'..QW.-1!gQQJ.Int." the receipt of wldch is hereby
acknOWledged. $750,00 of s/lid Depos.it is immediately e,arned an is
absolutely nonrefundable as a process Lng, site inspection, and
underwriting fee (the "Processing Fee"). The balance of the
Depol1it shall be held in escrow by steelton and either cred.ited and
applied - without further notice or approvlJl - toward any Placement
Fees due Steelton under this Agreement or should no Other
Comm.itment be issued and accepted by RorroWer I tile Depos.it (less
the Processing f'ee) shall be returned to Borrower without interest.
It is further understood and agreed that the entire Deposit will be
forfeited if a loan commitment can not be issued pursuant to this
Agreement because ot Borrower's' lack ot cooperation or
lingo four
nl'ld trllry re(lIIlo'lI to <1om/"r. wi tll tl,e II/llln I 1111" r1lJstomllry reqUest"
U,,, t may he m"de precm/flII, t.o tile "1I/1rovn I "",l/or IBBullllce of a
commitment, or .If Ilorrower mlllr.epra/lollt/l mnter/1l1 faotn UpOll ~'lllch
Staal Ul/l nlld/or IlllY 10ll,lor(H) n'lt /11" Ulflrow.1 t/J or tllRrefor hllll/IIIIVS
reUod, or If Stneltoll'n P:.~<1llllllvo IUgIII. In brnllolJad, 'lllllrJelled, or
v lollt tee/.
ell t/lR ovollt t.IJlII. III/Y I f/lldf/r (a ) IIl1d/or I,nrt IdplllltB ';I,orflwtth (ll0W
01' durlllg tl/fl FJlltHlf/mf/llt I'orln<l, Itll IIorfllnll(t;lIr <If/fined) or Ilny
IIgont(lI) or onrronpnlldollt(H) or other intermedlllrles thereof with
whom Steflltoll Ilns lIeqot.lal.ll<l wHII IIl/d/or o((erml flnancil/g for
IJorrower e/urillq tile term of 1;/1111 Agroemel/t ,'1/<1 III1Y extellB ion (s!l
shill 1 mnkl3 n 'lommit.mol/t IllIri/or 101111 or 10111111 IIIHI/or other
II/vestments with or to Rorrowor lind/or to III1Y firm, partnership,
joillt lIe/vellture, truat, Ilmlteri lillblllty compllllY, corporlltion, or
other ontltyln wllld, Ilorrower "lIs 1111 equltllble or bellef.lcllll
IlIterent. (tho "AffU'/lIl:l3d F:"t/iy/F:IIUt/en") within a per./od of ten
(10) yellrn (the "P:IIU 1.1 AmOIl t PeriOd") regardless of the
purpcJf/f/(s) of nnid oommlt.mellt(n), IOIlIl(B), IIIHI/or Jllvestm6nts _
Steelton Ilhall be entitled to tile Placement F'oe(s) IlpecJfled h9rein
for ellch f./l/lIl/cJl/g.
norrower nqroAIl to .indeml/ify nlld hold hnrmleRB Steelton nnd IIny
officer, director, employee, IIgel/t, cOI/Bultllllt, or Jndependent
COli trllctor thereof or therefor, wi th res~'eot to any and all
lJ"hJlJty, lOBS, cost, or expens~ (./lIclu<lJng legal fees and costs)
relaUng to claJms ar./sillg from oral or written Jnformation
furn.lshed by norrower and/or norrower's Advisors to Steelto/l and/or
any lender(s) actJng tllerefol. or tllerewJ.th or (or the failure of
the narrower and/ol. norrower's Advisors tc, dJsc10se or completely
disclose information about IIny mlltter and/or Cor any c1aim(s) from
anyone for broke raga , Under' B, or other fees related to any
(JllancJng(c) hereunder.
It is understood and agreed that l/ny In{ormation submitted to
narrower by steel ton shall bo from sources deemed LrJ be reliable,
however, such informnt.ion (or prospective 1enderR, p"rticipants,
agents, correspondents, or other JntermedJaries thereof) ne~d not
be ver./fied by Steelton or glut.lified and that no representatJon or
warranty concerning the slime .is made or should be Jmplied. TIle
norrowel' assumes the sole alld exclusive responsibility for lIny /lnd
all tral/saction(s) Bntered into alld represents and warrants that
Steel ton hns recommended that nOl'rower seek legal and tax counsel
to review thJ.s Agreement alld any commitment(s) and/or loal/(s) or
other financing before accsptance thereof by norrower.
Steeltol/, and/or any entity wJth whom it is associated, is hereby
authorized, upon tile conBummation of any fJnanc1ng(s), to place
Bucll advertisJng ill any madia, at its expense, concerning the
trallsactJon(s). narrower will p.lace a sJgn (provided by
IJ/lqa f ,L vo
steaJton) " durJllq the aOllntrllC]tlon or rel/ovlltJOn period" on /lny
aOl/lltruC]tLcl/l lind/or ralloVlltJon nHA{n) LndJollt.Lng thllt ste",!ton
1I1l"/or /lny AI/t.Hy I~I t.h whom Jt. .Ia /llIflO/:LlltAd, IIIIS 4rnl/l<]ed or mil de
lIa I d (Ln41lc.ll/<] (II) . 1l0,.,.ower IIqreell to LIIIlUl'fl sunh Ilign (II) IIlld
prov Ide oOlllpllnwII I ve, hron" (orm flll,!orflm!, geno,.1l1 linblli ty
coverllgo of nt lflllllt. $J,OOO,OOO.OQ - por IllglI " IIl1mJllq Steelton IIn
/I lORn pnyoe nil" innura" p/lrt.y A'~MA - wlt.1I a prior wrLtten thJrty
(JO) dny Ilotico Ilf onllaeJ lilt/Oil or II.IL" IllnUnJllCe t.a stoeltall.
furt.her, Ilon'(jwel" IIgreell ta Ln"elllll try /Ill" hold 114rmleIJR steel ton
and/or /IllY /lRnodat.ed len"el'{n) or otlmr rl/ltHien from nnd /lgainllt
/IllY /Ind all IIlthLILty lORn, oaRtR, or expollRoll (illcludillg legal
form nlld 'lOatll) l-elntlllg to or nr/alllq Ollt of naJ" slgll(s) nlld/or
"nmaqos or In} ury to personlJ or properLy "'IIIRfl" thel"eby.
'l'hJIl Aqroemollt Ilhll11 be "eelll19,J to h/lve /.JOall alltared illto, made, and
doliverml III r,omoYlle, PIlIIIIsylv/lIIJII wJth IIIlY Illld al/. nct/ono or
11I1Ir:UOIIIl of SUml tall deelllod to hllve IJRoll tll/collin PA Ilnd shall IInd
will _ nllY prilloJpleo of O'JllflJct.1l of law notwH/lotandillg - be
governed hy PA Illw and courts. /ly exor:UtJOIl hereof, thill Agreament
Ilh/l11 /llld wLl. 1 bo leq/llly b LndJllg upon the p/lrtles hereto, their
heirs, ouccessorll, admJIlJstrntorll, executoro, or IlsIJigns; shall not
be /lmended, challge", or modJfJed except in wrJting IlJgned by 1111
p/lrtJell heret.o; ill not assJgnllblo by Borrower; shall survive and
not be merged into tile dolivery or settlement of /lny commJtment,
daRd, f.LnancJng, investment;, loan, mortgage, trust deed, or any
otller event or Jnstrument. It /lny portlol1{s) of this Agreement
shll11 be ruled .Invalid as to PA or federal lBw; the remaining
portion{a) shllll remaJn .In Cull force snd effect as if the .Invalid
portJon{s) never existed. Also tlds Agr&l'1ment sets forth the
enUre agreement and understanding by and ",('tween tile parties
tI/ereto mergJng herein any /lnd all contomporaneous and/or pdor
agreements or understllnr/Jnga.
Ily execution hereof, each party represents and warrants to the
other receipt of Il complete copy hereof and that saJd p/lrty h/ls the
absolute and 1l01e Iluthority and c/lpacity to enter into thill
Agreement and the proposed LO/ln wJthout IIny further Itpproval~ from
4nyone and thllt this Agreemant does not vJolat;e or .Interfere with
any otllar agreement{s) or understanding{s).
Should Borrower cancel 01. breach thJs Agreemant, Steel ton as
iJquJdated damages, .Ita Itctual "amage~ being dlfficult to
allcertain, shall be immedIately entitled to ninety-five (95\) of
the Placement Fees spedfJed here .In dudng tile EntJtlement Period
/lS ,if this Agreement were in full force and effect and to retain
the balance of the Deposit /lS earned and crediting said Veposit
against the 95\ of the Plncement Fees due it. In such event,
steel ton Ilhall also be entJtled to reasonable legal fees, coats of
collectJon, court costs, and .Interest at the rate of twelve (12\)
percent simple interest from the date that the Placement Fee{s)
p/lg" "tgl,t
SECURI'C'" ,
I,r)/ln to be flV loenoe,' by /I mortgIH}",
not", nollnterlll IIs111qnment of and a
senurlty If/terflst In the Property /lno
all existing ur IlSrelnlltter acquiredl
Improvements Ulfll'l/t(j alld thereof, all
leaseR/ rflllt/!// 1111'/ IlIvomeR t/Jerefrom,
/11 L furnlture, fixturoll/ m/lohinery/
and oqulpmflllt used or useful In the
opor/ltJolI /111<1 m/lilltellsnce o( the
hotol/mot.el property - aEl /I vaJ1d
first. I iflll thoreill, thereo/l, /lnd
thereto
m:/JT COVERAGEI
I,oall to buuncolldJtJ.ollal Iy persollally
guarallteod by the /Jorrower
Not to exc:eed 60\ of the ta1.r market
Villus as determined by IIn appraiser
alld /In appraJalll In form /lnd content
acceptllbIe to LCllder.
1.25 Minimum u/!/ing Lender's
underwriting and apprllis/ll guidolines
ADDITIONAL COLLATERAL I
LOAN VALUE I
GENERAL '1'F:RMS AND CONDI'fIONS t
1. Borrower to pay T,ender' s re/lsonable lega 1 foes and coats to
prepare, record, tHe, and settle the Loall Documents.
2. /Jorrower to provide such cert.ifications, opinions, /lnd
reaolutiona as Lendor may requeat aa to vaJ1d organiz/ltion, binding
e(fect at the Loan Documents/ /luthor1.ty /lnd capacity to execute
a/lme/ the phyaic/ll condition or the oper/ltion o( the property, etc.
3. /Jar rower to provide f.lV idenca that it has obt/linnd /Ill
neoeaaary or required permits and /lpprovals to own, revov/lte, /lnd
oper/lte tile property - including, without JJmit/ltion, a v/lJJd
liquor licenae.
4. Borrower to provide Lender w1.th /I haz/lderous waste atudy (rom
a firm and in (arm /lnd content accept/lble to Lender showing the
property to be {ree at /lny h/lzaoerous W/lstea.
5. /Jorrower /lnd Guar/lntora to provide annu/ll (inancial statements
to Lender, prepared by an independent certified public accountant
and in {arm and content accept/lble to Lenoer - within alxty days of
the cloae of each c/ll/lnder year.
pllC}a tan
pllGAL U,8C1RIP'1'ION.
.,
Ii
MlltIlHlK'J:.,.'tQ. ..MOR?:gA9I_I\Il'J:HORIIA'l.IOH
,.
,
WIII!:RItMI, f\'1'F.F.Iil'OIl C/lI?I'1'/'Il" W'IL ("6teolton") and WILI,IM>! C. I\.IlP
B/ll,LV V. P/lVIS ("norrow(l!:'" )hAva ontered I.nto /l certain Mortgage
/luthori1.at.ion (ayreoJ1\ont), datoo 15 July 1993, (the "Mortgage
/luthori1./ltion") _ which is incorporl\ted horain by refEJrance and
1\1I1do ft part horeof - ano
WIIF.RF./lS, steo 1 ton and
amendments, changes,
/luthot' i1.f1tion.
norrowet. w1.sh to conf irl1\ the
And l1\odiflCl\tions to sl'\i,1
following
Murtgage
NOW '1'II~;rlF:l"ORE:, for goud Bnd adequate consider.at ion /, which I.D
acknO'/I lallged tlY norrower, intendin') to be loq/lll Y hound t..borebY,
l\or.rower And saller. flI1\end, dlAnge ano 11\00 if Y the Mortgage
/luthori1.ation as folloWS1
1. steelton'S exclusive right pedod to make or arrange financing
.is extended, w.ithnut. .interruption, from 15 september 1993, to
l1\idnight on 30 octoher 19931
2. the I?rocess.ing Feo .ia .increAsed by $~~O.OO which stoelton is
author..i1.ed to d.ishur.so frOI1\ the Good Faith neposlt held in its
escroW account upon execut1.on of this /lgreemenLI
3. fr.om the Good Faith nepos1.t, steelton shall be author1.1.od to
disburse to allY f1pprAiser chosen by Borrower and acceptable to
steelton, $5,000.00 nhould nuch appraisal be required to apply for
and/or close A loanl
4. upon del.ivery of a Loan comm.itmollt substantially as outlined
in the MortgAge /luthor!.?:atlon or of any other C01\U1\itment accepted
tlY Borrower, BorrOwer. w.lll pay to Btaolton One (1%) percent of said
loan amount. by perJnittilllJ stflatton to credit llny Ilscrow deponit
held, redflfllning the note held by steelt.on, and paYlnent of the
balance in cash _ an if a 0110 (1\) porcellt eSCrow depusit were held
by Bteelton.
'1'he other ter11lS, conditions, and covenantn of the Nortgage
Authorizatioll 1I0t changed hereby remain in full force and effect
with the Mortgaljo /luthorization and this Agreement beL1g ono
agreement.
III WI'l'IlE:SS" WIlF.IlF,OE' the undersigned partJ,es have set their hand and
seals.
c
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1I1.c~JfILAHIJfDH.I"'r.,_.'ro._HOB'rgAOI_,^U.'rH.oBI ZMI01f
WIII!: lllf.I\S , fJ'I'li:~:r"1'Otl CI\I' I'1'I\l"
RAt,I"" V. nAVIS ("non:ower")
Author i zotion (agreement),
Authorization") - which I.e
made a part heraof - and
WII~:Il~:I\lI, stee 1 ton and norrowet' have entered into Il certain
/lmendmont t.o Mot-tyage I\uthodzntl.on ("II'iret I\l1\endmont"), on 15
Rllpt.el1\bor: 199:1 - which Flrst Al1\ondment. lH l.ncorpornted herein by
reference and mEllle n purt hllleo[ - nlld
1.'1'n. ("flt.oalton") and WIl,[,II\l! C. AtllJ
have ant.erad Into /l certain MOL t'1age
d,~t.ed 111 duly 1993, (t.he "Mortll''']a
incorpol'ntad herein by refat-ence and
WIIlr.lU:MI, flt.ea 1 ton nnd
nm<lndmonte, chnngee,
Author1~ation and First
llorrower w.t.uh to cunf.l.rm the
and modifi':lltionu to aaid
/lmondmont.
following
Mortgage
tlOW '1'II!;;lU;FOlU;, for good nnd adaqullte consideration (which 1s
ncknowledged by llorrower, l.ntending to be legally bound thereby,
llorrower and Bteelton nmend, chllllge and modify the Mortgage
l\uthori7.ation and the Firet /lmen,hllent thereto af.! follows I
L. Btaell:on's exclusive right period to l1\al\e or an:/lnge financing
hee been and is extended, without interruption, from 30 October
1993, to midnight on 31 January 1994/
2. Borrower, ae a condition to the issuance of a LOlln commitment
and funding of the Loan will contract with V J Associatee, Ltd.
("VJ"l to provide various financial consulting advice and services
to Bon'ower which shall InclUde, without limitation: tha
inetallation of a financial accountlng system for the Property,
automation of said system with the ability to produce monthly
financial accounting statementa, assistance in selection of an
independent cartified public accounting firm (who shall be
acceptable to Lender) to provida annual financial statements on the
Property and the Borrower/Guarantor/
3. Borrower, as a condition to the issuance of a Loan commitment
and funding of the Loan agrees to retain a hotel/motel management
company to provide marketing servicos - including a marketing plan
for room and food and beverage revenues. Baid firm and contract
shall be acceptable to tho Lender;
4. In the event that Borrower is unable to meet the budgot - aB
prepared by V J and/or as is amended and acceptable to Lender -
for two consecutive quarters in any Loan Veaq Borrower, as a
condition of the Loan, will retain a hotel/motel man,'\gement company
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1'1" II' II :1I^11I ::: I J rJ'I'I'II:: 1l1':I'Li'IIII:: I t1I'OIl'I'/III'I'I::: 1'111'/1 W;'f'I.'ll,
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'1'11-.111: II "1111'11'1::',1111 /11\11",/1111111, I)/lY/I 1:11 1'1':1'1:1111/1 () ""Mil;
"/I rll'I"III/1 ,'11'1/1 111111.;1'1'1"" ::1': 1':NI'III:WI'II/1 1:::('''''''/1 /lIl/l,I!)
1"'11111-: ::1' 1'111:111: """::I.:,;lIl1r /1:;/::'1'1,:11"1/1 "I:';^I"
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TRUE COPY FROM RECO 1:111111":""'11,1 """I".Y ""lilt
ROlin" (IlUrl!lIHII!(l :,rlllllrC1
InTesttmonywherllOf,1 here untoMt my hani'," I h\o', I'". 1/011 '
and seal 01 sa r1 al Carlisle. PI 111-;""1-1,/1/11
Thl- 1 1~ 'at,
{. ~
~
4
.
~2~
4. OQo~ge J. (Jaraill thnruillaftor roflH'r~'1 to all "tlarrlia")
ill an individunl aiti1:on of l'onnaylvnnl.n wl.th offiooa lit
717 Markot stroet, flutta 210/ l,cmoyno, l'onnaylvnnl.n.
(Inrcin h tho dhnirmnn nnd proaidont of fltoolton C/lpitni.
5. I 'l'ho I1nviaoa doairnlto obtain fl.nancin'l by way of n
mort'laga on tho 1I0tol in ordor. t,o impl:OVn nnd to ronovllte the
fn(!I.11.ty nnd to rorinnnen tho thnn nx\.alln\J I.ndobt:odnollll. 1\
lonn in t:ho amount of $7..7 mUll.on waa aouqht.
6. Tho Dnviaoa arrnngod (or 9t:onlton Capital to net BII II
mortgago brokr>r by obtnl.n inq on bohn 1 f of t:ho DaV hOIl a l'Jan
commitmont (rom a londar for $2.7 million. 'l'hill ngrooment was
ent:ered into on or nbout July 15, 199]. Tho ngroement: required
tho Dnvisell to mako a $27,000.00 doposit and gavo Steelton Capital
60 days withl.n which t:o obtain the requiaito financing. The 60
day poriod would oxpiro Septembor 15, 199]. In the evont stoel-
ton capital obtai.ned n COl1l1uiltnont, it waR to be paid a cOl11l11isaion
of 2~ of tho maximum loan nmount. In tho ovent 8toolton capital
failed to obtain a conlllll.tment throuqh no fault: of the paviaes,
then all of the depo/ll.t, except a nonrefundablo ioe ot ~750,
was to be returnod to tho l1aviaes. 1\ copy of the 1110rtgnge
brokerage agreement, donominntod by the parties as II "Mortgage
I\uthorhation," is attachod hereto as ~~xhibit 1\.
.
-:.-
.,. on I:ho "","A ,IllY ItR t.he M,"'l:qllI/S 1\ul:horl zl\tLon 11"1'1
"nl:erAII Into, UIA pltrt In" II,"'andsll tho f\llt:horl ZitI: Inn Buull thllt I:h9
$;n,ooo ,llOpoR I t WltPl pOl'm It.tA') 1:0 be JIlt III hy " $ U~, ono uhook and
Ihn IIlCPllllt.lon 01 " $D,OOO ,h'mllnd uonflJl"lion 1I0t.e. 1\ copy of
I'hl" Itmon,lmonl". 1!1 n\'.tllullo" heroto IIP1 f;xhlhlt n,
n. Oil or nhoul. f1nplollllHll' In, 1'19.1, tll" pnl't1oPl nq"ill
nmnll'ln,1 1110 MIl,I./",/o ^" I' 11111' l7.nl lOll, '1'111 n nllloll,II1IOIlI-. n r feet",1
l'nl'lnln rllllHl<'lnl n,...nll'f"'lIollln ',ntwonll IIII' pnl'tlon, 1.0., 111-
<'I'nllno" 1\ pl'll11nnn Illq roo, 1'1 l'" hul' p,'IIJl' I pn 11 y flnl'VOlI to extelld
fll:ooltoll cnplhll 'n 11111.. ro,- 'lhtnllllll,/ l:lIn IlIl,,-t'ln<jo r1l1l1l1clllq from
f1opt.omhnr 1'; ullIl1 odohnl' 10,1991. ^ uopy or thlflllmendlllellt Is
1I1-1-.lIdl,,,1 horoh) IIn ';;xhlldt- c.
'I, 11\11'111</ thn t11l10 rol' Ht'.oolhll1 ('lIplt_nL'A perrot'mllnce,
nnndn, 011 hohnl r or Htooll:nll ('npHIII, roquonl:nrl tile IlnvlfHm to
"oopor"tn III 11 nlllnh,'r or WIIYR to ohtllln thn fll1l\lIclnq. Fot'
"xl\mplo, lIot!IIIII,,"tn RlI<,1I I\fl ,..ttnrA nr crOlllt nnd hllnk references
wnr" rO'lllnfllo,\ I\llll prov I tlnd. (;1\ rc \ n 1\ I nn I IIn I flt.",1 thl\t A f I IInn-
elnl Autllt, or pro ronnn, or thA /lotel hn perrormod by Olle nobert
Moyor (horr>lnnrl:or /-OrolTo,1 l:o AA "Moyor"). Upon Illrormntloll nlld
holler, Mnyor In 0 clORI"! pOl'flOllnl frlol1<1 of GArciA,
In. 'I'ho ,,()fIt or thl? Olldl.t provldorl by Meyor WAR promised to
be $1,500 (8.ml Exhibit. II to tlda complAlnl:), bllt the lJAvlRAS hllVA
.
In rAct been hl.lled $9,5nO for the AlId!.t, of which $8,1100 hAS
hoen pnl<l. 1llll'Ing t-tHl ()(lUrAO of stol"!lton CAplt.al's performnnce,
Gllrc1n preAAl"!ll t:hp 11l1vIAOR to Aqreo thl1t thA qrnnt of A lOAn be
.
. .
~4~
lion.' 1.1: tOllsl1 011 I:hn IIol:e"" hi dnq or Meyer /UI I'In ftOoounhll1: tor
nt InnRI: olle yenr.
,
II
II. On or nholll:, /;"1'10"",,," I!',/ I'J~;l,Rl:eell:on r.llpll:nl sought to
nmnnrl the Mnrt.,,",q.. ^uthor I 1. II 1:1 on ftllreement ftqft i'l. ^" heror", thn
pr Lne I pll J '10111 of t.he Ilml.'ndment WIlS to ellten,' the time tor pl!lr-
formllnoo hy stnn/ton Cllpll:lIl. Bpselticftlly, Rteolton CftpllAI
n'"I'rltl: t.o ,,><1"11<1 Ihn 11II1n (01' pOI'(onn'~I1<'n (1'0111 o.'I-<,hor 1, 1'1'11
IIl1t'l '/I1I1UI1..ytl/ 1')lJ~, 'I'hn I1l11nll<'II1"1I1: I1lno rnl,ul.."" thl1t tho
Ilnvlnnn 11.,..on Ihnt I1I1Y lonll ho l'oll<llllolln<l Upoll tholl' hlril1q of
V,I ^Rno" I ntnn / J,I.<I, / III PI"'V I <10 (11111'",1111 cOIHIlI/ t I 11'1 'H'I'V"-!OR Al1d
I1llvlo... I)poll II1(onnl1l'lon 1111<\ hel info V,J ^RAO,dilhIR IA operAt.P.tl
hy Mnynr, 'J'hn ilmn/l<hnol1t /lIAO re'luLrod I:he lJilvLnoR to Rgres thllt.
thn 1011/1 lIn 0011,111:\ 011[><\ upon the I r hi rlng A mill'lwt 111'1 ConRU I lRnt
1Hl<\ thn 1 r hi r 111</ 11 m/llll1qoment compl1ny /lctUI1 I) Y to run the 1I0te I
If, in illlY )ol1n Y().~r, tho 11l1viReR could /101:. meet A Illldget. f1pocl..
rLed hy "Itltnr 01' bol:h V,, ^RAOcliltP.1l Mid the lendor. 'I'he Daviaes
<II rI not A'Won to I.h III nmn/ldmenl:" novnr ilCcnptod .I t / And nevot.
RI'Innd It., ^ Impy of U,ln proponocl, LJnnccoptod Amnndmellt il'l
lIt:tAchnl\ AA E><hlhit E,
1~. 'I'ho IJl1vlAl?1'I pl'nl1lptty IIl1d propol'ly pnl'fol'mpd all t,1!lKn
thAt wora Al'lkn<\ of thom by st.polton CApLtal frr.lm .July 15, 1993,
thA dlltA I:ho Mort:qAqA ^uthori ?oAt: 1011 WAR ellocUl:ed" untIl October
10, 1993, I:ho dAtE> I:he Mortgllge ^ul:hori?l1tlon expired.
,1",1
..
.
.
-~-
11. ny leUllf d/lte,1 1I,H]lJmb.r :10, 1993, stlllJlton Cllplhl
Informed the IMVlllell thnt their oonduot had mlldlJ It ImpoBBlbl.
for Rteolton Cllpltlll to oht/lln a 101ln, th~t their oonduot h/ld
termln/lted the Hortq/lqe ^uthorl~/ltlon, /lnd th/lt Bte~lton n/lpltAI
In\-,ended to o/lllh tho $11\,000 depoalt check IInd to exeoute on Lho
I udqmnnt note un tEl/HI tho llAV lua pllld the oommlaa Ion tI.",t Btee 1-
ton cnpl tnl wrJll\d hAV" nArll",1 on tllA l"nuAncn of A commltmel1l'. nil
nm'lIlnt of $">\, 11Il).
coliN'\' 1
1.1\l~ 1 OXA!;.Q "'Y.J1.\dgm~n t.
14. 'I'h... IlAvlfI"''' promptly Anl! propnrlY performed All to!Bkl'l
thnt WArp nRk",1 of Lh"1n hy /It(,,~lton cnpitAl rrOIn ,July 15, 1993,
\:hn rlnt,e thn MortqA<Jn ^uthorl7.ll\: Ion WAR oxncuted, un\: II october
10, 1993, t.hn dnte tho M'H't.qnqe ^uthorl~Atlrlll explrel!.
1'1. /ltonll:nll CApltnl InAdA no complAint dudn" thlR time
thAt the l>AvIRPR wore not promptly And properly performing All
thl! tARkA thAt were ARkP.l1 of them.
1(,. /ltenll:.oll CnpltAI had until october 30, 1993 to obtain a
lOAn commltmnnt th/ll: mot thl! terms Rpl!clfled by the partleA In
the Mort.l)AgA Mlthorl?At.lon. stoalton CApitAl failed to obtain
Rudl A 101111 commltmont by Octoher 30, 1993.
steelton capital'S
.
fill lure to do flO WAA not cllUAed by Any wrongful conduct of thA
llllV i f10A.
-1\-
17. 'I'll. Mortql\ge /llltllorhftl:lon el<plrltt' tly ltl' termll on
ont:nber 10, 1'191.
WIlf,ItF.fOIlF., pll rauAnt, t.o t.hn ponnay I vl\nl.. IMc I.. rAt,ory ;/lldgmftnt
/ld., 42 .'.Il,G.!>.. U '/fdl ~t floq.. the plAlntlfffl WilliAm C. IJAvla
,
1Itl<1 AAlly 'I. IlAvlA I'OApo,:uullY Aak tho COllrt to ,lodArn t.hAt.
Ihoy Aro ontltlo,l to tho 1',,\:lIrn of t.helr ,'nposlt, AII,I the ,'ooU-
",,,ntA ovld"",!!n,, tho A/\l1\" , IOAA l)'/'ill to ho rotA Ill"" by At.ea'ton
cApl!'AI, AII,I fol' A'l<'h nth"r rnllof AA tho collrt ,loPI1\A Appro-
pl'l At".
colltl'l' II
DJ;'!lpc:lu>J ..M.OIlt,ly ._C9JltJ:'JW\;..~y~I;.~~1.t9n..S:~'Pi.tQJ.
In. fltnnlt.on CAp1t111 WAR Dmployo,1 by thn lJAvlRes to ACt-. Aa
thl! I I' Agent In proCII 1'1 nq 1\ lOAn con1l1l I tl1\ont, to he II A'''' In connec-
tlon with tho 1I0tol,
19. fltc"lton CApitAl owml All \I1l<llvld...d d\lty of lOYAlty to
the lJ1\vIAAR InAofAI' I1A ohtAlllln<J A loAn ,_nll',I1\\I'",ont WAA concerlled.
zo. ny A"pk 11l<J to IIAO tho MnrtqAqo /llIthor I 7.111:. Ion Agrenmnnt
AA A veldeln hy which to nhtAln employmonl:, for t-Ioy"r, st.eo1ton
CAplt1\1 fldlo<' to IIAe ItA hp.Rt effortR oil hl1hA\f of tho \J1\vlaes
And 1eopArd\7.nd thA Illt"rnAtA o[ tho lJAvlAI1A by pre[Ardnq Lhose
of Moyer 1\11<1 ItRolf.
zl. II iI ,I steolton cilpltnl actoll ?,enloURlY AR the Agent of
tho nAvIRPA, n loall col1\mitment wo\lld havn b...on obtained. In any
I'vnnt, th.. \lAvIAr:>f1 hAV'" IOf1t valUAble time In obtnlnlng the
-.,...
""'Mired oomnlll:mmlt by virtue of Bteeltem CftplU,l'lI Impl:"opel:"
pt'OIUIOU t:I nn 0 r H R nqenuy t:o obtllln rI nftllo I ng.
WIlJr.l1l':J"or!Jr., tho plnllll:\frs WllliAIIl C. !JAvis IInd BlIlly Y.
tllwlR reApeetfully prAY f'lI" IIn IIwftr,l in llllUlHIQ of $.lO,OOO.OO
,
In dlllftllgeR for t.he brflAd. ot oantrllot by Rtoeltan Cllpi\:"'l IInd tor
Rlloh atllnr rollflf IIR the Court: deemA I\pprapdl\\:e.
(,OlJN'" I J I
nrO!lc/ulC fldudllrY INty l,ly S\;oolt,<)1I C/Jlllt.Al
;1.;1. . Ator> 'tOil ('liP I hi I WIIR "mp I oyo" by tho llllv IRoR" to IIO\: 1111
thaiI' aqollt, III pro","'ln'l " lOAn r,!ommlt'mont to be uRed in Oantl8o-
t Ion W Hh thn IIclto I ,
~1. /itn"lton enpltlll OWfleI 1111 ulldlvl,led <lut}' of 10Yl\lty to
t.he DAvlRnR Inrwfllr IlA obl'l1lnlng A 10l1n oommltmoll\: W"",l Oonc<1rned.
24. ny Aenklllg to URe the Martqngo ^uthori~ntlon agreement
IlR II vehicle by which to obtnlll employment for Moyer. Rteolton
('Ilpltnl fllllncl t.o UAO itA bOAt effortA on bohnl f of the llnlliBoB
Ilnel joopnrlll7.e><1 the> Intnrr>AtA of tho llilViBI'R by pn'forr:ing thoRe
of MOYPI- Illlcl Ih1l'lf.
25. 1I11e1 fi I' Of' I tall (.','p I t., I Ilct.e>d 1.P111 OUA I Y nA the Ilgent of
tho DIlVIEJf!R, 11 10l1n eommltmnnt wouLd hllve bonn obt.lllno<l. In I\ny
evellt, tho IJl1vl.f'lf!A tll'lVn 10At Vl\lllll\JLn Umo In ob~lllnlng the
elllRlred commltrnfll1t. by vlrtlle of SteeLton Cllpit;,I'A Improper
proAecutlan of ItA Ilganey to abtl\ln finAncing.
.
-Il-
WHF.JlF.FOIl/':, I:ho plnlntlrrA WillInm C. l)nvla nlld Rnlly Y.
Jlnvis rospeotrully prny fllr nil IlWllrd in OX~OIlIl of ~10.000.01)
In oompensAtory <l"lnAgaA nllll in pllnltl Vl' <lnllln""1l
ror tho ht'flIluh of fl<llloiuy duty hy Btuslb:lII Cllpitl\l "11<.1 fnr
slloh othor rflller nR thn Court deems Approprlllte.
cotJN'1' I V
f"1.'l\ud )Jy/lll.lo!t<:i/l Cnpl!:gJ,
;"r>. /ltnAltoll cnpltnl Inform",1 "ho /JnvlsoB thnt numeroua
<lnrJUmnntB, ate" worn 1Ir>,!nAAnry to ohtl1ll1 illll1ncln</. Ilteelton
Cnpi tA L n LAO rorcfld the /Jnv I AOA to hnvA An nu<llt, or pro formA,
uonduuted hy MeYAr,
~.,. /ltenlton C,~p\l'nl Il1tl!n,lnll tho lJnvlseA to roly on ItA
InformAtion nn<l Rtl1temnntR nntl thoy <lId RO roly by doing All thAt
WnR nRknd of thAIn.
~n. Upon infnnnntlon nnd hellef, stoc>lton Cnpltlll's true
pUrpOlll!l In h,~vlnq thfl 11llvlAeA provide the intormlltlon, etc., Willi
not In rnet to ohtnln n 10f1n commitment, hut rllther to "ntrtng
ollt" the 10l1n I1ppllt!ntlon f1nd commltmo:ont procPAII ror liB l('.llg liS
pOARlble In or<lAr to (1) provltle AA milch compenllntlon to M~yer AA
pORRlble, nml (~) to o:onnble Rtoalton cnpltlll/Gnrcln to gRin somo
control av.n' tho opernUotl of the 1I0tel throuqh ~nynr.
-9-
;l9. '/'hA ""lIlIIAAbl ((It' hlfo...mlltlol1 W....e tIlIAAly mllda In t.lllll:
I'h"y WAro t"Hl'lnAbnl fot' nn 1Ilt-.rlor purpolJo which WIlIJ ooncellJed
n'om tho IlltvIA<.lA, nn,' I.hA promllJlJl!l mn<ln hy ,'ll:eelhlll Cnpltlll Were
IMdn with no Inl'nlltloll of pnl'(nrmlll<J thlllll 11111:11 fitonll:on CltpJ-
tnl'a f,.nll<llllonl' Pllt'POA" wnR nohiovo,l.
:)0, Ifll" I1t:nplhlll C"pltlll Ilol:ed ~9ItlOlll!lly liB the ngent or
Ihn DnvlnnR, n lunll "011111111rnnllt WOIII" hl1vo bnnll obtnlllnd, r" Itny
nVnlll:/ I'hn !IIIVI""" h"vn 10At, vnlllllbln tlllln In obt"IIIIII<J the
dnAI"od WJI1II1II I mElllt' by Vll'tlln of fH:nnlh"l Cnpltlll 'A f"nll<l In
"nl,.ln"II1<' nroll'l" Ihn !JllvIAOA nl..1 ""b'IIII,IIlI' 0111'." tho lonll IlPpll.-
"nl lOll Ill'" "Ollllllltl1l""t P"O""AA.
W/fr.;t1r;",olu\, Ih" pll1ll1tl ffA Will Inrn C, !J"vIA 1111<1 RIt) ly V, L'ltvlB
ronpol!l.flIJ Iy pr"y 1'01' nil nw""" ill ('IICUbll of $.10.000.00 .in
"OIllPOIH1n t'lry dnmn"..n nil" 111 plJlli.l:.ivn dnllll1<InH
ror thl! frnll<l oOllllllltt"d "pOII tho Ilnvln"/1 by I1I:PAlt.ol1 CnpltAI Ilnd
rot' Allnh othnl' rnlll~r 1lI1 I.h" COllrt: donlllf1 I1pproprlnt.a.
COIIN'I' v
JntQr(or~n~o~bY_GQrcla
11. StRntt'ln Cnrltltl WnR obllqlttnd by uontrltut to Use itB
bAAt OrfortA 1:0 0111:,,111 " 10nl1 oommltlllnnt nnd to Aubordlnllte Jts
OWI1 Inl:llr.el!ltA to thORO or. tho !JIlV iaoA.
.'
~ll/-
U. ^I!l "n IIqant of tho IlIWil!lQs, IltoOJl:on Cl'lpltl'll OWod tho
/lllVllIO/l 1'1/1 Ilntllvl'1otl tllIty of IOYl'llty with respeot to the slIbJeot
mlltl:nl:" Of tho IIqo/1oy nit" to flllhortlilll'1te its own il1torofltR, 1I11t1
tho illtarosl:l!l of othorfl, to tho intareflts or the IlIlVJsOR.
:n. Gllrclll l>Irol1qt'LIJ ly, mllllclollllly, lilt" without JUfltlfioll.
tI 0/1 j l1t1uoo<l IltoA 11:0/1 Clip I bH to brolloh these oontrl\ol:Ulll I\l1d
rlrlllelllry <lut'I'm I'n tho /l"vfRA'Il. IIfR Pllrpom'l'1 lit ftl<lllcll1g tho
"roil chaR WAl'o h, (I) Pl'ov 1<10 IlR 11111"'1 "rl/1IpAllrln t: I "II l'o Moyor ,HI
pORRfhlo, nlld P) t.o Allnblo ntoell'rm cnplt:nl/Gnrcln to gnln some
<''In'rol OVer' Iho opol'." 1011 or thn IIntol l:hroll'1h MAY'!I'.
:14. ntooltoll Cnpll',,1 dl.d hr'''''oh thoRI' COlllrnet:lInl nnd
Clr'lIolllry dlltfoR.
35. IIn<l IltOl'ltoll Cnpltnl notad ?onlollsly ns the ngent Of
l'hA IlnvlSl-'R, n lonll oommltmont WOllld hnvn I:men obt,lille<l. III "/1y
AVOltt, l:h" /lnvIR"R hnvo lost VnlUllble tlmn Itl cJbtninl/1g tho
dp.RlnlCl commltltJnllt by Vlrl:Un of Steel ton Cnplbll's bl'ellches Of
contrnct ,'ltd Cf(hlelnry <lut-y. 'l'h"RO t1'1m'1goA Wor" proxlmlltely
cnllscHl by the wI'OI1'1rUI, ItJnllolouB, Ill1d unjuRtlCJ"tI conduct Of
nrlt~c i r1,
WIII\RI\f'oru:, tho Plnl/1tlccs WIlllllm C, lJnvlR ntld S,llly v.
/lnvls respoctfully pr.1Y COI' nn 1l~lnrd in OllrmnR of $30,000.00
In cOmponAlltory t1nmnqes ~l1d in PUnitive damages
for Gnl'clil's lnterCOI'e/1oe with the r:ontractulll "nd fidUciary
dill: I es OWed 1:0 th"'hl hy Stee !tOil Cflpltlll Ilnd ffJr SUch other relief
111'1 thl! cOllrt d""mR Ilppr-oprfnte.
. .~..,
"1l"
coUN'l' V I
J"nlll1..m.IJArcill
l~. Rteelton CApitAL through GArcLa informed the bavises
thAt nUmernUR dOl1ument,R, AtO., were necossary to obtain fi-
nAnolng. Atanlt-on CApitAL nlso foroed tho onvlsoR to hBve an
AIIlII t., ot.' pro formA, con,lllcted by Meyor.
1'1. /1tooHon cAplt.AI AIlll GAndn Lnl:ondAd UIA llAVlsol!l to
"oly on It.. Infll,.mlll-!on 'In,l nl'ntomon!... ,1nd thoy <Ild ..0 rely by
<Ioln'l Al L I'hlll' WIH' IInko,l of thom,
IR. l/pon Inronlllltlnn An,1 hpllnr, Ht.opHon CApltnl's tl'ue
pUrpOIH! In hAvln'l tho IlnvlAoA prnvldo tho Inrorl1latlol1, otc" WAS
110t In rnr~t to obtain n loan "Oll1l11ltl1lont, hut rnth.;,- 1:0 "Rt,rlllq
nut" tha IOMl appll<'al:lnn And OOl1ll1lll:mollt proceRfI ror AR long BS
pORAlbln 111 ordpr 1:0 (I) provldo nR milch COmpPllRAl:lol1 to Mey"r AS
pORAlblo, nnd (~) 1:0 pnnble Atoelton CApltAl/Gnrcla to gain soma
nontrol ovor I:ha opprntlon of the lIotel through Mpyer.
llJ. 'I'hn r<:>'1uoRtA for Information wore falsely mAdo in that
UIPY w>,ro r"'1unnlo<1 fOl' an ultprLor purpoR~. whIch waB concealed
rrom tho !Javlnnn, nnd th.. promiRoB mado by litoelton capital 1/IlIB
made with no Intention of porforming them until steplton CApi-
tal's frAudulent purpoRA WAR Achieved,
""MjJAgl_AU~JjgBIIA'U\)1f
"or /lnd in aonsidor/l t LOll of the serv Leos to be rendered by S'l'BIIIL'l'ON
CAPl1'Al" 11'1'0. , a PellllllY I valda coqlot'at.ion ("steelton" ) , w1th
mailing address ,at '11" iln!'/(et Streat,. Suite 210, Lemoyne, PA
1704.1-1581 a/lll Wl1,l,rAH C. lJAV1S ANO illS fIIU'B, SAr.1,Y Y. OAVIS,
jo.Lntly alld severally Ilel'eillafter Ilometlmes called "norrower, w1th
mall.Lng addrellll c/o Allen /I. SmUll, F:s'lulra, 4" North Puke streot,
York, l'A 1"401, norrowor IIer'eby grantll unto Stefllton the sole and
exclusive right (the r'F:xclusive /l.Lgllt") to see/c, find, iSllue,
make, or othondse obta ill a commitmollt (t/IB "comm.itment") tor a
mortgage or doed ot trullt (tile "Loan") on t/lo real property (the
"property") dascr.Lbod III nnd substant.LaLly pursuant to the torms
and cond.Ltlol1s contained in tile attacllad Exhibit "A" (whic/J is
incorporated herein and mnde a part hereof) or upon any other terms
and conditions as norrower accepts (the "other Commitment").
,st!ll,ul~JLll11/Jll_11Jl'l!Llli.-.1LJ)$Jx.J.gr;L9L.JJJ.xj;Y-_l.Ml.L.sliIY.1i t rom~ Jk.t.ll
tha t tllifL/JgrMl1lgn.LJ.lL/J~C!Jlll;!JJJ.J2:L1!J.LD/.u:j;J.-'ilIL11!Jre to tJ1!l 1101 fI ..AJ1!.f
!lX.WUive rJ.gb1;..ML~,-tJ./J.!j.....-J.lU1JJ!LJI1Ak!LJ1LQtherwise obtain Mi'i.
MfDJiLLJ<9mmllJn!Jn.t.l.s). t i/JIJllll..J.ng1.l1.)J....l91JnLflJ.4-l!Iortr;1age Lttl.A..J1L trust
r;}!llliil.ull-J;hllt...J.IU.ilC!LJ}LJ.tUIJJ.:.L1;iLbJLl1!lQJJIJliL)}Y....lWY-.JU: all 0 [ Jhg
fi9D/ld;-Y-iJmJi.!1rJny ex.J.l1.iJ.ng.-QI'.J1!JJ:J1J./1JJ.t1f1J'-1I.s;qu ired imvrovem~
th!lmUL/Jll!LJ;lJ!Jreon ...Alf~1lJ!LlLJ!EjfJJL.I.BJlJ:rJ..T];&D TO TI/Lneill.
(SUC! F! E~llMlli.JlltGARPLES~LlJX.J)lL'.l'I1BJL.WlJ9JL{i/tI D CQJfflll1J1lIiL.
C11i!JJJ~-LQ!JfL MOR'l'GMJE....--MlV.Q/LX1llLS'l. DEEILJ.UltBlL~
NEGOT!A2'lCQ, SOUG1I7'. FO!lJ/IJ...~'iJl&~I}J;.J OFFERED. GRANTED. OR
QX11E./iliLSll OJJTlllf1ll1L=-1JiJ:.LllD.IJiSLXllLlJQ.BRQ11J:1L=-lW1lI1iSi THE TERM OF
~'I/!S AQBHfJlifll.. INCLU/ll1i.G AN'i...ElcrJlflSION(S I T/l.ll1IEOF.
In connection wi th the proposed l,oan, Steeltoll will do the
toJ.lowing:
1. aSRiRt t/16 Borrower and/or the norrower's attorney and/or
accountant ("Advisorll") in preparing the neceRsary dncumentation,
write-ups, and or loan application(s);
2. hllve the Exclusive RJ,glll; to ilrranqe or mske any loan or
t inancing Recured or to be secured by all or part ot the Property;
and
3. use its best eftorts to obtain a loan commitment or
commitments tor the [,oan described in Exhibit "A" hereot.
Steeltoll shall be tree to sesk out any lendbr(s) and/or lender
participant(s) and to exchange any and all intormation about the
Borrower, the Property, and/or any matter(s) related thereto.
A
Iml/fl I,wt)
StflBlton flllall nil" will not /Jfl re'l".lro,' to IttteRt to tile aO'1IU'/lOY,
comploteni/RR, or vlILJdlty of IIny IItlttemollt IIbollt tho IJorrower, the
pro/lortYr ox.tBt/ng 01' propoBod .tmprovomfllltll thBreto, tI,e neoessllry
or re'1" /'ed governmontnl IIPI)/'ovnls to ClOllutruct, OWII, /lnd/or
ollAr/lto tllR P/'oparty, the (In/lnc:illl {oIlR.tbilHy of Slid, oporllt.ton
nllrl/or ,It' t./lR l,onl', 1.116 C'J1/<1t tion o{ 1.1'0 I'roporty, etc.
Ilorrowor aqroos ';0 mllke no eC tort (s) - during the term of tlr.ts
Agroomollt - (.I) t;cl obtn.tn, produce, or neCllJre IIny comm.ttmallt(s)
nllrl/or lOlln(s) /lecurod 01' to 116 lIecurlHl by 111.1 or pltrt of the
I'l'operty 1,/11'11 tlle.tr/Hs OWII lIot or t;/,ru the act oC /lny otllOI"
perBon, l'i I-m, or coqJor/t t .tOil I (2) to aRB ign, ennuII/ber, or f,ledge or
.in IInY WilY ell/lllge tllo e'llli tllble IIl1d/or halleftc.tll/ tit Ii Itnd/or
illterost .ill tile Propflrty (wlllch iR IIOW Ilold by /Jorrower /lB tenants
by the antil-atiaR IIl1d not /lR tenlllltR III cOli/moil). '1'0 /)0 SO IS AN
I MMEorA'1'1': m:FMJ!/1' Ill' IJOlllWWI':ll m:lU:UNm:11 AN/) A lJllE:ACII 01' '1'IIIS
AGTlEEMEN'J' .
No gllllrllllty or wal'rllntyiR IMde by Steelton tlJllt /lny comm.ttment or
t.tnllllcing will be obtll.tnod or made, only that Stee/ton w./l/ IIse its
bost efforta to seek, {.I.lld,issua, make, or otherw.iae obta,in a
commitmf/nt {O/' the [,Olin deR'idbedill tllll attllched E:xh.tb.tt "/1".
Borrower agroes to accept II/Id to settle upon II commitment for
n LOlln IIIIbstallt.inl/y under alld lIubjllct to alld contingent upon the
terms and condit.iolla cOlltained .In Exh.ibH "A" hereof tile
Commitment - or thllt once IJorrower accepts Ilny other commitment
(the atller Commi tment); then steel ton has earned and is due i tl1
(oe(s) as herein provided.
Borrower agrees to promptly furnish Ruch datil and exhibits IlS
Stllelton Itnd/or IIny lender( s) acting therewith may reasonably
request cQncerning Borrower and/or the Property. All document3,
drawings, bluepr.ints, appraisals, etc. ("Lolln Documentation")
submitted to obtain the Loan Commitment Bhall /lecome the exclusive
property o{ Steel ton Ilnd Stae1ton is under no obligation or duty to
return the [,oan Documen tlltion to anyone. Further, steel ton mlty
..:opyright tile LOfln Request which it propares to seek financing.
Additionally, Borrower agrees to attempt in good taith to comply
with the terms and cond.itions o{ any loan application, letter of
intent, excluRive authorization to deliver It commitment, and/or
101111 commitment {or the [,oan - which /Jorrower executes. Borrower
(urtller agreos to depos.i t sucll security, "good [ai th", or escrow
deposit(s) as such agrF.lement(s) require and to pay all of the
agreed and/or usual disbursements normal and incident to said
agreement(s) lind/or the 'Joan closing; including without limitlltion,
appraisal {ees, credi t report charges, ti tIe insurance charges /lnd
premiums, engineering reports and studi,es, recording and tiling
fees, mortgage stampR or taxes, survey charges, etc.
1'1I!10 "/1'00
norrowOl' rrllWOllalltll 1111" Wn1'rllllts t/lllt III1Y 01'111 or written
stlltementll or Informntioll or ex/,/IJlta IIulll,Ued or mllde by the
norrower to Staelton IIlId/or /IllY 10Ildor(8) therewlth or therefor
iII/lire true, ClorroClt, nlld Clomplfita.
III ttw avent thnt StaeHoll li/lnl! o!Jtnlll 01' mllke II commltmrmt or
commitmenta (tW tile [,01111 8uIJatllntllll!y undor the term" IInd
aonditlolla of Exhih.it "A' (tile Comm/.tmont) or upon /IllY other term8
IIlld condlUona /lccel'tf/t' hy Borrower (the other CommHment);
Borrower ngl'oea to PIlY 1:0 Steel ton (II "1,01J1I 1'1llcoment p'oe or Fees")
- of two (2') parcellt of the mllxlmum 101111 IImoullt - one-hlllf (1/2)
upon the lSITUlllICe of the CommHmlwt or acceptnllce of the otller
Commltment alld the hlllallce urJOII t/1<1 eill'lier of tile settlemrmt of
sald flnanclllg(a) or thlrty dnYIT thorfl~tter.
All Plllcemollt P'OOIT n1'.l to bo pllid to Steeltoll hy cllsll1ers or
certified choc'1u<1, wJra tralla(or, tJ.tlo complJlIY/lIgent e/"crow
checl[ue, or escrow checl[ue of tI,e sottlo/nfint agent. Additionally,
Steel ton mllY IIpply directly to alld rocaJve dJrectly from IJny
lender, title compaIlY/lIgollt, encrow or aettlament agent ita
PIlJcement Fees wJth II p/lOtocopy of t/ds Al[reement beJng Borrower's
.Irrevocable escrow or settlement Jnstructlons authorJ~Jng direct
plJyment to Steelton of ita placement Feea and indemnJfying IInd
holdJng hllrmleBa IJny lender(s), title compally/agent, aettlement
agent, and/or other perRon, f.irm, or corporatJon from and agaJnst
IJny IJnd 1J1l Uab.ilHy, loss, cost, or a,l(pellse - .includJng leglJl
fees nnd costs - for such direct dlshurBem,mt(s).
Borrower underatlJ/lda IJnd agreea tlllJ t Steel ton may receJve
IJdd.itJonal (ees from a lender or lendera for aervicJng and/or
origlnlJting 10IJna for Borrower or AffililJted EntltJea - without
further diacloaure to IJnyolle. Alao, Ste<1ltoll mlJY be tile lender or
be IJ plJrtlcJplJnt therew.Lth IJnd be compenaated therefor - in
addition to receiving the Placement Fees.
With the execuUon of thia Agreement, Borrower depoaita with
Staelton the aum of $27,000.00 (the "Good Faith Deposit or
Deposit") 1rI. caslUers or certified c/lecque payable to steeltoll.
~lLiJ;a1. Ltd., j;f}QI'.Ql'l.-1IQ.g.Qyn.t..L the receipt of which is hereby
acknowledged. $"50.00 of slJ.ld DepoH it i8 immed.la tely e,arned an is
absolutely nonrefundable lJa a processing, site inspection, alld
underwriting fee (the "processing Fee"). 'Phe balance of the
Deposit RhlJl.l be Ileld 1.11 escrow by Steelton ana 'lither credited and
applied - without further notice or approval - toward any Placemellt
Fees due Steel ton under this Agreement or should no Other
Commitment be issued and accepted by Borrower, the Deposit (less
the Processing P'ea) shall be returned to Borrower wi thout interest.
It is further understood IJnd agreed that the entire Deposit will be
forfeited if a loan commHment can 1I0t be isaued pursuant to this
Agreement because of Borrower's lack of cooperation or
1'lIgo! four
IIrb1trllry r'~lfulilll to uomp/y witll tI,e u/l1/1I1 IIl1d uUlltomllry requelits
thllt mllY be mil de pnweden t 1.0 the lIf1provlIl 1I11e/lor 1,lifluIlllce of II
uommLtment, or If florrower mlsref1r'f/lientll mllterllll fllatR upon wId at,
steolton 1l1I<1/or IIny lOll<ler(R) /lctlng thnfflwUh or tll.u'efor h/tfllll/we
reJ.ted, or if Stne!ton'li P:xclulllvo IlI'lllt iR hrfillClhed, c:llncelled, or
v.lolllted.
In tile event thlll; lIny Jender(lI) lIn,//or pl/rt.lclpllllta thorewit/l (110W
or during t.he E:ntltlemont Period, lI/1 horelnl/fter cloflnedl or 1I11r.
agont (Ii) or corroRpondent (II) or other III termedlllrleB thereof wit I
whom stee 1 tall haB negotJlI ted with lind/or offered fJnllllcJng for
florrowor during the t.erm of tlJiB Aqreemollt. 1I1Ie/ /IllY extonliion(Ii)I
BIIlIll mllke /I commJ.tmen t. lind/or JOlin or 10.1l'R Ilnd/or otller
JllveRtmentB with or to florrower /lnd/or to IIIlY firm, pllrtnerahip,
joint IIdventure, truRt, Umited UlIblllty compllllY, corporlltion, or
other en t Hy In wlJich florrower II/lR 1I1l equHllblR or benet icial
interelit (the "Afflllllted E:nti t.y/E:nU tieR" I within .' pel'.lod of /;I'n
(10 I YOllra (tile "F:n tI tloment E'er/ad" ) regard leali (If the
IJlJrpose(a) of aaid cf.lmmitmenf;(a), 101/1l(s), IIlId/or Investmenta -
steeJton ahlll! be entHled to the l'l/lcement fee(a) a/lOoltied her"in
for each fin/lncing.
non'ower agrees to indemnify and hold hllrmlesa SteeHon and any
ofUcerl diroctor, emplo)'eo, ilgont, consultllllt, or Independent
contractor thereof or thorefor, with rospect to IIny and all
liability, 10BIi, COBt, or oxponlie (inclUdIng If/gill fooli and COlitR)
relllting to c1l1imli arising from 01'111 or written informlHion
furnishod by norrowor IIndlor florrower' R Advisorh to stenl ton IIndlor
any lender(s) IIcting theretoI' or t.herewith or for the fallure of
the florrower IIndlor narrower's A<ivlliorli to disclose or completely
diliclose informlltJon about any matter /IndiaI' for any claim(s) from
anyone for brokerage, fincler's, or otller fees related to any
financing(li) hareunder.
!tIs understood IInd agreed tllllt any Information submitted to
Borrower by Stee Hon lihall be from sourcos deemed to be relillble,
however, such information (or prolipoctive lellderEl, particJ,pantli,
agents, correspondents, or other intermediaries thereof) need not
be verif.ied by Steelton or qualified IIncl thllt 110 reprelientation or
warranty concerning the same ili made or SllOUld be implied. TIle
narrower aSRumeli the Bole ilnd excluli.ive responsibility for any and
all transllction(e) entered into and represents and warrantli that
Steal ton haR recommended thllt Borrower lieek legal IInd tax counliel
to review thili Agreement and any commitmf/nt(li) andlor 10an(li) or
other f inllncing before acceptance Ulereof by /Jorl'ower..
Steelton, IIndlor any elltity wlth whom it is IIssociated, is hereby
lIuUlor.ized, upon the consummat.ion of any financ.ing(s), to place
such advert.lslng .in IIny medill, at UR flxpellse, concerning the
transaction(Ii). narrower wnl plllce /I Ii.ign (provided by
1''''10 fi ve
fitefllton) - durlllq tllo c1OIIntruutioll or l'allClv"UoII parlod . on /Iny
uonntnwtloll /lnll/ur rflllOV/lt;/UII nUe/(II) IIIdlClIlt/ng tl."t st,."lton
lI11d/or /IllY Oil t tty w tt.h wllom It In "nnonl /I tflll, 11/1/1 /lrrll/Jged or m/lde
R/lI</ (/.nllllO/II,/(R). nOl"I"owor nqraflR I.u IIIlIuro suell n.I'III(R) /lnd
'l/"OV Ida C!ompllrallR I vo, 1Iro/l<l form olle/o,.nad, '1f111f/,." I 11llbi l, I t;y
oovflrllgf/ of /II. lonnl. $1,000,000.00 - por nl'lll - n/lmiog Sl.eelton aR
II lORn 1'lIyeo lI11dlnl/ul'od /l/ll'l.y M'INA - with /I pdor wril.ten tllil"l.y
(30) d/lY nol.lce of C!lIncollilt.loll of 1I/lld IIII/Urntlc)e t.o 5toall.oll.
"urt/lor, nOI'rowel" /I'Ireos 1.0 IIIdomn try /loci II0ld IInrmleRs Steelton
/lIId/or ilny /IRRcwllIl.ad lellcler(s) or otl/Or ollUUes from alld against
any alld all 1I/l1Iillty IOl/n, oostn, 01" expanson (inclUding lagal
feos /lnd cOIII.S) rellltln'l to or arlslll'l out of sllid slgn(s) lind/or
dlllnnges or Injury to persons or propel'l.y cllusad I.lIereby.
')'II1s Agroament sllllll bo <If/amed 1.0 hllve Ilflen ontered .Into, mada, lI11d
df/It verad in l,emoyne, Pellllsy 1 vll/J./n wH.1I IIny anrl all. actJons or
I/lilctionn of Stooll.on doamed to IInvfI Imon tllke/lill l'A ii/HI sllall /lnd
will - any prindplos of <1oll(/lcl.s of law IIotwHlIstandillg - be
gover/lfld by l'A IlIw lI11d courl.s. ny executloll lIoreof, tllis Agreemallt
sllall all" will ba lag/llly b.lndlng upon I.ha parl.ies hereto, their
heirs, successorn, IIdmill.lntrators, executorl/, or ast; iqnsl shall not
ba amanded, changed, or mod.lflod oxcept III writing s.lgned by 1111
pal'ties horetol is not ass ignable by norrowor 1 alia 11 aurvi ve and
not be mergad .Into tho df/livery or settlement of any commitment,
deed, f.lnane/ng, Investment, loan, mortgage, trust daed, or any
otllor evellt or instrument. If any port lon(s) of tills Agreemant
shall bf/ ruled .tnval.td as to FA or Fedaral lawl tile remlJining
portion(n) shall remaill.ln1.ullforcealldeffectas.lftheinval.td
portion(s) never ox.lsted. Also tlds Aqreoment sets forth the
entire agreemellt alld undf/rstancling /Jy and botween the parties
thereto merg.lng here ill allY and all contomporalleous /llId/or prior
agreements or understalld.lngB.
ny executioll hereof I eaell party represellts alld warr/lnts to the
otlJer recoipt of a complf/te copy Ilaroof /lnd that said party has the
absolute and sole authori ty and cllpacity to entar into th.ls
Agreement and the proposed [,Ollll wi tllOUt allY further approvals from
allyone and that th.ls Agreemellt does not violate or interfere with
any other ~greement(s) or understandlng(s).
Should narrower cancel or breach thin Agt'eement, Steel tall as
liqu.ldated damages, .Its actual dllmnqes beillg difficult to
ascertain, shall be immedJately alltitl,ecl to lIinety-five (95') of
the Plllcemont Feos specJfied here ill during the EntJtlement Period
as if this Agreement were ill full force and effect alld to retain
the balallce of the Depos.lt as earned and crediting sai<1 Deposit
agaillst the 95% of the E'lacemellt Feas due it. In such event,
Steel ton shall alno be ent.ltled to reasonable legal fees, coste of
collect.lon, court costs, and interest at the rate of twelve (12')
percent simple illterest [rom the date that the Placement Fee(s)
1'11gB eigll t
stCURl'l'Y I
1,01111 to be ev 1.1/...,wtJd by /I mortgage,
note, C1011llteral htUllgllmellt. of alld It
"scurLty IIIt.,ff'oat in thfl Prol1ert). /lnd
/Ill e:daLlllg or Imrein/lnor Ilcqu.Lredl
improvamall ts tllarato /Inri thareof, /Ill
le/l"e", rOllts, /111<1 incomea tlleretrom,
It 11 furn /tllre, fIxtures, maclJ1nery,
IIlId e'lulpmont used or lJaeful ,in the
oparll t LOll Bnd maLn tan;3l1ca ot the
IlOtflJ/motol l)rop~rty - /1/1 II vlIl.Ld
first 1/011 I./lOrol/l, thoroon, and
tllorato
fl/Jf)l'/'lONAL COLM'l'ERIIL I
1,'1/111 to /10 I/lIcCJ/l(IJtiCJlllllly poraon/llly
gl//lrnntood by I./Ie Borrowor
Not to fllwflecl IHJ\ CJf tile fall' market
v/llue no determillod by 1111 Ilpprlliser
alld an Ilpprll Laa l in form and Clln ten t
IIccoptablo to Lflllder.
LOAN VIIWEI
DEB'/' COVERIIGEI
1.25 MLniml/m using Lender's
I/nderwrlt.ing Bnd IIpprllislJl guidelines
GENEUIIL 'n:RHS AND CONDn'IONS:
1. Borrowor to pay Londor's roasonable legal foes Bnd costs to
prapare, racord, file, and settle the LOBn Documents.
2. Borrower to provide SUcll cerUticat ions, opinions, and
resolutions as [,ender may request as to vlllid orga/lization, binding
effact of tha LOlln Documonts, authority and capa~ity to execute
aame, the phyalcal condition or the operation of the proporty, etc.
3. Borrower to provida evidance that it hila obtained all
nocossary or required pormits and approvals to own, revovat"l, and
operllte the Property - including, without limitation, a vltlid
liquor license.
4. Borrower to provida Lender with II hazaderous wasta study from
a firm and in form Ilnd content acceptable to Lender showing the
Property to be free of any hazaderoua wastes.
5. Borrower and GUltralltors to provide annu"l financial statements
to Lendar, prepared by an independent certitl"ld public accountant
and in form and content acceptable to Lender - within sixty day" at
the close of each OBlander year.
Il .. Jr, I I'n I 'r ~ I
11111'lllhllhlPfIIl
"'\'iI~ III
r I ",,'I' AHlJfl)","'~ .fU....H1)R1'GAII.~IJ'rIlQIUJAT ~OI
'l'h!I1 1I'1"'IU'mM/lt.. itllt" "1"J,l'Ot., /lmefltll~llnt,") 1I11T.'-""R t'J amend, lJhllIHI', and
IOlllllly (\ /,111,'I/lln ti'Jrt"J/uIII /lllthol'J ~"',Ion (It,.. "A9t'IIllrnllnt"), ot IIVfll'I
rlote h"""Wllh, by 1I/1r1 betwlH.IJI "1I.f,11\.H C. tl/lVIB IUlD IUlllfl'., 1lJU.r..r
r. PAVU! (jr,I.I/lIIy "nd lJ18vllr,111y "l)lIrrnw"r") /In<l BT.llf,TONCI\PITAL,
LTD. ("[jt'U>ltllll") - wlt-.h lIoid Ayrn"mllnt In<:orpor-IIt.,lId IlfHlItn by
n(orll,wlI tlll'l IIIIld" a (.H\1' I, h.rllo[ - /Ill toll1/wII I
L. I,It" Ih'I'""It. r"JIIl:li"',1l of $1!1,OOO.1I0 toy '~lIl!Jhilll"1I or <J"rtiUl9d
<7hlll("11If1 111101 II rI(II""nd r.:ullf.nn" Lon JUdlJflmli!J.t not.ll fLol11 nornlwor to
Rteel t'.IJI1 IlIl,1
?. th", A'Jl'llem.nt IInrl t.hh ~'il'nt. Am'fn<hllnllt, may hn I1m8/1l.1,.rI by a
writiny t.r'/tllrllllittlld t-.hrll and/tn' IIXllOlltul.l 1,11"\1 0 "fllK 1110(,'hiIl0" with
.aid "'/I~ <:opy" bllJng t.he .a~" /Ill on orJqlnlll of t.h8 writ.lng.
, ,
AU t.rm,,/ oondlti<>nll/I an<t oovenant.n of tll'" Ayre.m.nt: not amnnd.d,
ohllnqlld, or modlfl.d by thin Pirst Amllnrlm.nt romllln in filii rDr~e
IInd eIlflct with t..he Agrellment And this FI rllt AJnondmllnt beln'J onA
Agrellment or aontrbut.
!nt,nnrllnq tu b... Itlqnlly
thl;ll rl hAnd. Ilnd fl8111. a..
If /1 I' ;,:/"
/((U, (11((/(-",
Wll,I,Tflti C. DAVIR
bound thereby, ~hft 1l1ldQrnlqnlld
IJf t.hl.. ....:.J:. <I/1Y ot Juiy 1993.
I
I
hAVlI .lIt
(Bed)
_J~,(('\ II' d..c!.'!J._.. .
RAr.r,y Y. UAVHl
CSul,)
RTF.F.L1'ON r;'AI'J'I'^r., r,TO.
By,
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MllI~..JIO.B'F,gMIi__l\lIjJiQJUJA'f.l_ClK
Wll.EIl.EAS, S'l'l!:Jf.L'l'ON CAPI'l'l\I" I}l'll. ("BtooltQn") and WII,LIAM C. ANP
SALLY Y. PAVIS ("Uorl:ower") hava antored inl,\ a certain Mortgage
Authorization (aljraoment), dntad 15 ,July 19B, (the "Mortgage
Authorization") - which if! J.n<:orporatod heroin by roforencl! ftnd
made a part, hereof - and
W"I!:Il.I!:AS, Stealton and
amendments, changes,
Authorization.
non-owor wish to confirm the
and modif icntlons to said
fo llowinq
Mortgage
NOW 'l'll~:lHWOIIF., fot' good alld adaqunte consirleration (wh ich ia
acknow lodged by norrower, intend i ny to be legally bound thereby,
J\orrowor an,1 Bellor amend, chnnge and modi fy the Mortgage
Authorization as follows:
L Steelton's exclusivfI right period to mako or arrange financing
is extended, without interruption, from 15 September 1993, to
midnight on 30 october 1993;
z. the Process ing Feel.s incronsed by $750.00 which Steo !ton is
nuthorized to disburso from the Good V'nlth Deposit held in its
escrow account upon execution of this Agreement I
3. from the Good Faith Depoeit, Bteelton shall bo authorized to
disburse to any appraiser chosen by norrower and acceptable to
Btoelton, $5,000.00 should such appraisal be required to apply for
and/or close a loonl
4. upon delivery of a I,oan COl1l1l1itl11lJllt substalltially os outlined
in the Mortgage Authorization or of any other commitment accopted
by J\orrower, Borrower will pay to steel tOll One (I") pet'cent of said
loon amount by permitting Steelton to credit any escrow deposit
held, redeeming the note held by steel ton, and payment of the
balance in cash - as if a one (I '\) porcent escrow depnfli t were held
by Steelton.
'rhe other tenl1A, ccmdit.Lonfl,. and covenants 0 f thE' Mortgage
Authorization not changed hereby remain in full fotce SlId Qtfect
with the Mortgage Allthodzntion and thin Agreament being one
agreement.
,
IN WITNESS WHEREOF the undersigned parties have Bet their hand and
seals.
r\
~
(",i)
~
V,I ASSOClA TI:'S, I' l'.
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pr~rnrl!! F1VI!! I 51 Ye~r C~sh ~low 'orp~~~t~ tosubll~antL~tp ,our
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I.COND WIfJ]HJjIfLm..MQ8\r.liAG1L.A1I.1/iQRUAUQJf
WIIl!:Rl!:AB, B'l'l!:ll:L'l'ON CAP I'l'AI"
BALLY Y. DAVIB ("Borrower")
Authori~ation (agreement),
Authori~ation") - which is
made a part hereof - and
r..'l'D. ("Stealton") find Wtl,I.IAM C. AND
hava entered into a c~rtain Mortgage
dated 15 July 1'193, (the "Mortgage
incorporatad herein by reference and
WlI~;RI!:AS ,
Amendment
September
referance
Bteelton and Borrowar have entered into a certain
to Mortgage Authod~ation ("f'irat Amendment"), on 15
1993 - which First Amendment is incorporated her~in by
and made a part hereof - and
WlIlr.HF.AS, Steelton and
amendments, changes,
Authori~ation and First
Bon-ower wIsh to confirm the
and modifications to said
Amendment.
following
Mortgage
NOW 'l'IIll:REFORE, for good and adequate consideration (which is
acknowledged by Borrower, intending to be lagally bound thereby,
Borrower and Bteelton amend, change and modHy the Mortgage
Authori~ation and the First Amendment thereto as follows:
1. 8teelton's exclusive right period to mal~e or arrange financing
has been and is extended, without interruption, from 30 October
1993, to midnight on 31 January 1994;
2. Bon:ower, as a condition to the issuance of a I,oan Commitment
and funding of the Loan will contract with V J Associates, Ltd.
("VJ") to provide various financial consulting advice and ~ervices
to Borrower which shall include, without limitation, the
installation of a financial accounting system for the Property,
automation of said system with the ability to produce monthly
financial accounting statements, assistance in selection of an
independent certified public accounting firm (who shall be
acceptable to Lender) to provide annual financial statements on the
Property and the Borrower/Guarantor;
3. Borrower, as a condition to the issuant:'l of a 1.0an commitment
and funding of the Loan agrees to retain a hotel/motel management
company to provide marketing services - including a marketing plan
for room and food and beverage revenues. Baid firm and contract
shall be acceptable to the Londer;
4. In the event that Borrower is unable to meet the budget - as
prepared by V J and/or as is amended and acceptable to Lender -
for two consecutive quarters in any Loan Year; Borrower, as a
condition of the Loan, will retain a hotel/motel management company
(
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nnternd Into, the pnrUnA nmlanded tho ^lIthorl?IIt Ion Aueh ttlllt th'1
1)~'I,ono ,I",poalt, WAR parmlHol1 to be pAI<l by " $15,1)1)1) ehellk IInd
I hn OIlAellt.\ on of A $1 ~, 000 demand oon (('R!llon note, ^ copy at
thlA I\",OIl,IIOr>1I1 11'1 AttAdlr>" hereto 111'1 f:llhlhit, \1,
n, Oil or nl)l)llt flnpl-PlOhnr I'>, 199:), th.. p"..I'.!E'A "gllln
Amnl1,ln,l 11lr> MOlh,A"n ^"lllorb:At 1011, 'l'hlA A 11I"11,111I0 II 1- ,,((pctm'
,'orl'l\ln I' I I1ntll'l.l \ AlrAII'IPll1oll1n hpl-wonll Iho pArU"", 1,0" In-
"rnA""" A pr')I~"'If1IIl" fop, nl"" hllt prill'" pl\ II Y APrvr>d tn elltond
nl:onll<Hl cnp\l-I\I'" tllllr> 1'01- ohtl\\llll1q Uln ",ortql\qn rllll\l1clng from
r;"pl'nmh..r II') IInl.\ I od'.ohor \0, 1'1'11. ^ copy of thlA Amllndment If!
nU.l\nhPlI hnroh, nil "lIhlhlt c.
q, IlIlrlll" I'hn tlllln (01' I'Hooll:olI Cl\pltl\t'A p"r(orml\nca.
!;Arldn, on ""hl\ I ( or fltopll:on cnplt.A I, r"qll(mtp,1 lll.. Ill\vIRE'A to
coopnrntfl In 1\ nllmhor or WI\Yfl to Oht..lln the rlnl\nclng. For
ollnmpl", "o'~llInr>lltA Alii'll I\A lot_l:nrA 0 ( crn,llt nn" bnnk re rerenceB
worn rO'l"nAI'o,1 1\1\1) provl,lml. Gl\reln ntno IIIAIAtp,) Ihnl II flnnn-
clAl nl\lllt, or pro rormil, of Uln lIotnt hn po I' (onl1f!l1 by one Robort
MOYAr (hnrollll\rtr>r I:" (ptT"" to /HI "MOlyr>r"). upon In(orml\tlon nn')
h..llof, Mnypr In 1\ clono pronwnl\t (rlolIII o( Gnrcll\.
10, 'I'ho COAt l) f tho 1\1I11l1: prov I tlotl by Mey...r WAF! prom hIed to
bo $1,1')00 (~ee "lIhlhlt-_ II to this compll\lnt), hilt ,the DAvla!lfl haVE!
In fact h...on hlllod $q.~oo for the Audit, of which $8,nOO haa
hnnn plIl,l. llllrlnq t-IIP collrF!O of steolton Cllpltlll'S perfol'mllnce,
c,l\rclll proFlFlo,) the llnvlAoA to I\grpo th"t tho ql'lltlt of II 10lln b!l
-4-
<!onllltlolllf,l Oil I'tln lIot.IIP" hlrlllq or M"yer "'" 1\11 1I000UIltl\nt rot'
lit lell"t. olle y"llr.
11. 011 or II holl I'. 1;"1'\0111111" I"" 1'1'1;\, RtooltOIl CApitAl sought to
IlIl1nnd t.he Hort,!n,'!'" I\lIt1lod 1.lIt Ion IIgreemellt IIglll n. 1\11 ~lIror", tho
pdno I pAl <Jon I or tho I\monllment WI\II to Elxtelll' the 1'.lmo for Ver-
rormllne(\ hy rHI111ll:on cnpltlll, apolJlrlcAllY, RtoeltOIl Cl\pltlll
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II lit. I I .Innllnrv 1\, 1'1<J~, 'I'hn nlnl1n<lmnnt nino rn'lIlII'",1 thllt tho
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V.I I\f,"Il"lllln", 1,\01., 10 provllln rlnnll"ln\ lnnnllltlnq fll>rvlcofJ nnd
n,lvlnE>. IIpon Il1fonnntlon nn,l 11f111l1f. V,) I\flflrwlnl:"R la oper.ltrll
I>V MI1V"r. '\'hn nlnnn,llnl1nt n \ RO rO'lll I r",1 thn IlnV l"nR to ngree thnt
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1111,1 l.,h" I r hi r I n'l n 1II1111n'lnlllrnl eompnl1Y n,!l.lIn \1 V to PIll the lIoto I
I f, In I\I1Y 101\11 Vnnr, till! 1ll\vlRofl could 110t mel.t n nudqet Elpocl-
rlp,l hy olthnr or hoth V.I I\RROcll\tef\ And the lend"r. 'L'he llAvlfles
Il\<l not. n'1r"" to tllIfl nml1n,lmpl1t, nevor n",~eptflll Il, nn" never
nlqn",1 II'. TI ,~opV of thin p,'opoflod, lInrlccrptOlI AlI\"ndmont If\
nlt.ndll"1 nR F.xhl\llt F..
1)" 'l'hl1 Ilnv \ nnn pl'Olllpt I Y Rn,1 propl1r \ y pnr fOI'III"" nil t,1I"I',f\
thnt w"ro nnkn" of lh"'" \ly Rtr>ell.Ot1 Cl\pltRI from .Jllly If,, 19<J3,
lhA dAtn thn Mort.qRqn Tlllthor l7.ntlon wnn nXO()lltPII, lint 11 october
10, 1<)<11, thn dRtp thO Horl.qnqo I\lItllorl7.Rt.lon p.xp I red.
..
~
~!l-
11. ny InHnr ,lAtclIl 1l'lUnmller ~ll, 1991, /ltnolt,on CAplt,,1
InformOlI UI" IlnvlRnn thn!' U1Alr OIHl,hld hn" mn,lA It ImpolHllhlo
for RtnAltll11 cnpl!'nl t.o olll.rdn n 101\11, th~t, I:hnlr oondllot hAd
tnrmlnnt,"1 t:1I1! Horhl'''I'' Mlthorl~nl:lon, nnd t.hnt Rtonlton cI\pltnl
1 11 I'. AI1,I",1 to l.:nRh t.ho $1'1, 0110 depoR I t oheok I\l1d to ollocuto on t,hn
)\I,lqmAnt 110to \lnleRR \:ho ll.wlBefl pAid tho commlBsion ttl~t fltool-
lOll cnpltnl WOIlI,I hnvr> nnrl1",1 on thn IOOIIAIll'n of A oo,"mltmonl-, An
nm'llll1l' of $'1 I, 100.
coIlN'l' I
IJlilo i Un t,Q);'Y. .} \)d\JInon I;.
14. 'I'ho IlnviRoR promptly nn,l propC>l'ly parfonned nll t.'AkB
th/lt worp /IRk"" of thom hy IHoAltol1 cnpltnl fro," .July 15, 1993,
tho ""to thl'! Mort'lAqn /lllt'hnrl7.Al:lon wnR elloclIto", until ootober
.\II, 1991, tho ,Into till! MOl'tqA'lO /lu\:hnrl7.nt.I'Jn ")lplrol.l.
1';' Rtl'!oll'on cnpH.Al mAdA no oomplAlnt "\lrll1g I:hls time
thAt the IlllvlRC>A wc>rp not pr.ompUy nnd proporly porformlng 811
Ihe tnflkn thnl: WPI.'O .1nk",1 nf th",m.
16. Rl:ec>ltnn Cilpit.ill hnd lIntll Od.nller. 30, 1'19.1 to llPtl\ln II
I nnn commltmr>nt thnt ,""t tho tAr,"o Rpll<:1 f Iml by t.ho pl'lrl:lm, In
UIA Mort.gilqo /llllhnrl?I\I'.loll. RtAf:'It.on c,'pltnl (nilI:''' to obtnln
nlwh n 101111 onm,"ltmr>llt lIy oet.ohor JO, )<)<)1. Rtp~lt()t1 cnplt.111'B
fAilure to <10 RO WAn lint enURed by nny wronqrul condllct of the
IlI'lVIRElR.
.
~6-
1". 'l'h.. MortqAqe Mthodut:1on expired by ita terms on
llutnl;ler 30, I'HI',
WIIF.IlF.FO/1P., purAIIAnl', to the PennsylvAniA 11eolllratory Judqment
,\Ct, 42 PJhG,P, U '!'illllt AllCl., the plAint:1ftS WllliAm C. fHwls
,
Iln.1 Rlllly Y. llllVIA rOApocUully Ilsk tho COllrt to lIoelilre t.hAt:
Ihny Ilro ..nUtl"" to tho rolurn of tholr depaalt An<l the doou~
I1I0ntA ovld"'1l.'lnq Iho ""Amn, 10AA $'1fill to ba l'nt.AlnOlI by steelton
<'nplt'1l1. An,l rn,' Audl nth..r ra II.. r AA I'h" emll't ,'''''ms nppro-
prlllt." .
COlltl'I' I I
Dr:ea\.!h.. oLMllIIGY. .c;:~ml;.t'j) ~LI;..M f3 he H9D.3:':.!IP ,ttJll
lR. stonlt.on CApll'AI WAA omployell ny th/il PAvlslls to Aot IlI!1
their agent In prOl:url114 A 10fUl commitment to bo usod In connec-
t Ion with the lIoto I .
19. Sll:'ell'on cnpltAI owed All undivided duty o[ I'JYAlty to
tho llAvlAos InAnrAr nA obtAining n lOAn commltmollt WItA conoerned.
20. By flo..k Inq to UfI<! tho MortqAgo Author17.At ion Agrenmont
AS A vohlelo by whldl to olltAln nmploymont for Moyer., steoltun
CApitAl [Allod to UAA ItA hest efforts on bohAlf of thl! Davlsea
And jeopArrll7.od thn I nt<H'oRt!l of the OIlV IAPA by preforring lhose
o[ Meyor And I tAn I r.
21. IIAU Rteolton CApitAl aetell 7.ealou~ly AS the agent of
the IJAV!SRA, A lOAn commitment would hAve neen obtained. In any
event, the IJnvlSCA hAve 10Rt VAlllable time In obtaining the
.
~.,-
,1""ll'od (!<lmmltmnllt hy vlt'l-lIn ot 81-,II111t0l1 Cftplt:ftl'fJ impropllr
PI'OI'UlClII1:lon of Il'A II<Jpnny to obt:"il1 rln"llClinq.
WIlrr.ljf:I"OJlF:, 1110 pllllnt-Itrl'l WllllR," c. llRVill IIn<l SRlly V.
IlIlVIR l'nApont(II11y pI'IIY ror IIn RWRrd in nX':rJ1I1l or $30,000.00
,
In dllmllqoR tOl' 1'110 hl'OIl"" ot contrllct hy stnolteHl CRpitRl IIl1d tor
IIl1uh OUIOt' r(>llo( nA I'ho Collrt dlloma npproprintn.
collN'l' I I I
nn:lllch of vhludlll'V Duty IJv /;il;.oolton <;lIpitul
~~. rll:nnllon Cnpll-nl wnn omployotl hy tho 11nvLRo"'to not n6
I:holr Rqollt, III prCll!lIt"IIl'l 1\ Lonll "ol1l1nLt.l1Iollt to hn URo,1 Ln conlloo-
1:1011 with thn 1101-01,
~1. r,1:nnllnll cnpLt-nl own,1 1\11 ulldLvldOlI tlllt~' of 10YRlty to
tht! IJnvIR'H1 Innornr nn ohtnllllnq n lonn Cr,ll1l1nltmonl: W,lA ooll..::"rllod.
~4. ny fll>nk I 1l<J to URn thn MOl'l:qA<J11 ^,ll:horb.AtLolI IIgropmenl:
nR A VI"h!<:ln hy which to ohl:Aln employml1lll: for Moynr, 5teelton
CAp1t1l1 (nlln<l to lIno It-.n hnnt. ef(ortn 011 bohnlf o( th., nllviRoa
AIl,1 )nopnr<ll7.nll thn Il1tnt"nnt:r~ of tho IlnvlRC"R by prnrnn:lng thORO
o( Moyor nl1<1 Itnnl(.
~'i. 111\11 Rtnnltol1 cnpltnl Actod 7.nnlouAly nR the nqnnt of
tho llnvIRp.A, n 100111 commll.l11<>t1t wOllld 11lIVp. bo>ol1 obtnlned. In allY
oVRnl:, tho IJnvlflf>A hnvI' 101'11: vnlunblo I:lmn lP ob~lIlnlnq the
<laRI rmJ commltmnnt. by virtue of stenlton Cllplt.,l's Improper
prOAp.cutlOt1 or ItR Agl1ncy to obtaln rlnAnclllg.
.
~8~
WIIF.IlF.f'O,llr., thn plnlllHffA WilliAm c. llnvll'l "'"\ flnllY Y.
I.
,
llllv In rnsperJt.. fill, I Y prny fnr 1110 IIWII rd L.. l!)l~ot\ll 0 [ :Pll.llOO. 00
In compenslltot'y dnmn'loA nll'\ ill plll\l I- I Vl' ,llImn'I'HI
for th.. IIr..n"'l of flduulllry dul-.y lIy flteeltoll Cllpltlll II ,Ill fnr
Ruuh othnr roll..f AA tho court delllmA AppropriAte.
collN'l' IV
~'a:llud ~)y pteollQIl cllpltn~
~(,. nl-ooH.nll cnrltlll IlIfonn""I tho \lnVISRI'I thnt lIumerous
t1CllJllmnntA, ..te., wnrn IIncnnnnry to ohl-nlll illlnllCI IIq, IItenlton
CApitAl AIAO fore",I th" I)AvIAOH to hnvo An nudlt, or pro Cormn,
uonduuted hy M"yor,
~'I. r;tfln!tnll cnpltnl Ilt,,"dn,I t.h" \lnvl"nn t.O rnly on ItA
IlIformlltloll nil" ntntnmnllt.R nn,I l'.h"y did so rely hy doing All thAt
wnA nA\((>,I 0 [ thnm.
;1.11. \lpon III[nrml1t.lon nnd hellof. fltoelton Cl1pltnl's \',rUO
purpOSA In hl1vlll,/ tho \lI1VIROR provl<lo the Informntlon, otc., WAS
lIot III fnet. to olltnln 11 10nn commlt.mollt, hut, rl1thor to "string
out" th.. Innll I1ppl knt.\oll nlld commitment proceRs [or IHI ICllq AA
pORAlbln III ortlor to (\) provide nfl. much cOInpenRAtlol1 to M9yer AI'I
ponlllll1o, I1nd (~) to 01111111(> Bteeltoll cnpltnl/GArcln to gain Aome
cOlltrol. ovnr tho nrorl'lt.\OIl o[ tho 110\.,,1 thrl1uqh l:l"y..r.
.
~!l-
:1.'1. '/'h.. rll'lllflRI::R for Inr'll'm"l:lll/1 Weto '"ho/y m"de In I:hlll:
"lI"y w"ro rnllllnRtnll (ot' nn III h'ldot plIl"/lOl!!e wh I uh Will!! oon(JO/l led
rrnm tho JlnvIR"", lUll I l.hn promhol!! m"..lo hy /lbH'Ilton CIlpll::i'll Wote
II1l1dn with no IIIlnllUnll or pnt'formllll/ thmn IIntl I IltRnlton Cnpl-
I.n I 'R r"nlllll" ""1' IJlIt'plH1n wn" Auhioved.
)0, "nIl nt:nn I tOil ['liP I t/l 1 /loted ,"Oil lOllllly liB tho Agent or
t'hn Illlvl"OA, 11 101111 1l011l11l1111l0lll: WOllII' h"vn bnOll ohlnlllnll. In nny
"vnllt, tho Illlvll10R bllVO 10111' vnlllllbl" 1:lmn III obtnlnlll" tho
doni rod <!llIllIlIfl'1II0lll' hy vl/llIn or n"'~nlton Cilpll'n) 'R rl'llll<l 1"
"nl"'ln"III,, 1110111'" tho f)IlVlnon nlld "nt,'IIIl/III'1 OLlI:" 1'110 1'11111 ftPpll~
nlll'foll nlld "011I11I1['11I""1' proeonR,
w"rmf:FOflE, thn plnlllUrrn WJ II 11111I C. n.wl" I1n<l .'l.'lly .~, PllvlA
t'r>npnnl.rLllly prl1Y ro,' nil IlWIlI'" III .~IICtlhn of $10,000.00 in
"rllnpnllnnl:ory dnl1ln<JoA nll,l In Pllfll.t:ivo dom"'I"H
r'lIe tbo rrnLl,J <:01111111 U:"d L1poll I'ho Jlnv I ""A hy st"El I ton CAp 1 till IInd
rot, Atll:lI ol'.hor rollor I1R tll(l COllrt d(l"IIIA npproprlnto.
COllN'l' V
Jnl:.liltfl;lnmCIiI,PY,Gilt9J!I
H. Rl:onlt:on CllpItAI wnB obllgnl:ad by UOIIl:tACt: 1::0 Use its
hOAt. Qffott:s 1:0 obtllln II 10AII llommltmont: nnd 1::0 suhordllll\t:e its
own Inl::atQBI:S to thoRB of I::ho nllvlABR.
.
~ll)~
1;1, ^l'I IIIl lI'Inllt or Iho Illlvillllll, RtllaJtoll Cllpltl" rWlld I:hll
/lnv IRIIR nn 1111'11 v 1,1",1 '"I I' Y 0 r J OVII ltv III Il:h I:"Aspeol: 1:0 I:hll slIbj ..01:
mnU:or or thn IIqonev AIIII 1:0 RllhordLllAtll 11:11 own illl:oresbl, Alld
II," IlItlll'l!l'ltl'l or (J1:hol'l'l, t.o tho illtoroRl:s of I:ho DAVison.
II. GArciA ~ronqrlll Iv, mllliclrJlIBlv, 1I1ll! withollt JUstlfioA~
t 1011 1'11111<101' 11to<lll:on CAplb" 1:0 bl:"OAch t,hoBe (1(>I1tl:"lIol:lI111 IIlld
rldtll'll1ry ""I InA 10 Iho II'lVll'lnA. iliA IHlrpOAnA In Illllllcln</ I.hl)
hlo""',nA Wn"n 10 e I) pr'ov I<ln I1A IIIl1ch CIlIllpnnAl1t 1"11 I'll Moyor 111'1
POAAI"ln, I1nd en to o",lblo I1tooll:o" Cl1,dtl1l/Gl1rul1l 1:0 'lAin ROmo
1'<lnlroJ OVer' I ho llPO"l1t.1<1n or Iho IIntol Ulrouqh Mnyol'.
H. lil:nn I hlt] Cl1p 11:111 <I I <I hrol1ch I:hoAo "ont /'11<.'1'\111 lAllI'
rl<lllnlllry <I If I: Ion.
.Jr;. 1111<1 /Jl:nnllon Cl1pltl1l 11,,1'011 ?ollloUAly 111'1 tho Ilqont of
Ih" tlllvll'lOA, 11 IOl1n commltmollt would hAvo boon ohtl1lnod. In IIny
nVnnt, the tll1VIAnA Ill1vn 10At vlIlullhlo Urn.. In obtlllnlnq till)
dnAfrod cOl1l/nltl1lnnl- hy vlt'hln or St.-IOa,on CApl!:;ll 'A br...lchos of
r,:nnl:rllct I1nd r1dll,:llIry dlll-.y, 'l'hoAe dnmllqos were prolllll101tolv
""UAnd by I:hn wronqrul, 11I111lulous, IIndlflljuAtlri....1 conduct of
r,nrcl n.
W/Jf:rlF:r:orm, I.ho "ll1lnUrrs Wlll1l1m c. IlilvlA IInd Slllly V.
tI.lvlA rnspectrUlly prAY ror 1111 AWllrd In r.Xflr!IIH of .10,000.00
In (mmpllnAlltol'y <lllmlll/OS Illlr! in punitive damagos
ror Gllrr:tll'A Intol:"ronmce with the ':ontrActlllll Alld Cldlloiarv
dutlos oWetl to them by stoel.tnll Cllpitlll IIn<l r,.,r Rlleh other rol1llt
IlA I:ho COLJ/'t r!oemA IlpproprlAte.
.
-111-
:1;.1. ^a /In IIgant of tho IlAYhe/l, nteelton Cllplt.'1 rJ\'ll'd the
tl/lY I AD" IItl 111I<1 I Y 1,1<<... ,luty or 10Ylllty w ll:h reApeot t.o the sUbj",,,\:
,"/lttor or thn Ilgnlley AIl,1 1:0 AlllJordlllllto its own Il1torol9ts/ IIntl
I hn llltoroAtA or ol:horA, 1:0 tho lntoroAts of tho D/lY Isos.
n. GnrclA wrollgrul lV, maliclollAly, /111<1 wlthollt Jllstlflo/l-
lion IlIdueo,1 l11:ooll:on Cllpftal to broach those 110ntrftotllaland
r 1,1111: I n ry Ilul I nR 10 I ho P,1V' R"R. fI fA plll}1tmOR III f'\lhl<' I nq tho
"rolluh"A worn h, (I) pl'OV 1<10 /lR IIlllnl, '.'''IIIPOI1BIIII "" In Moyor IIA
,"mAlhl", '111<1 P) to ""nbl" I1t"olloll ('IIp\tnl/GAr!.!fll 1:0 gAin AOmn
"f/Ill:ro/ OVEl,' I h" oporllt lOll or tho flntnl I:h"ouqll M"yor.
H. I1t.oo 1 hl/1 ('liP I tnl 011 <I hrollch I-hORn eOIlt: rll<.'tunl /lnd
rlrluolllry dllt lOR,
Jr;. find Rl:n"/trm ('nplllll n"':oll 7.olllounly IIn tho ngont of
t /In fJilV I A...A, II lonl1 comm I tmnnt, Would /lilVn boon obtll fnod. 111 nny
nvnnl:, thfl /JilvlAnn hllvl'! 10At v/llullblo l:lme 111 obl:/llnlng tho
dOAlrnd commltmnnt by vlrtuo or Sl:onll:oll Cllpltnl'l9 brenches of
"l1l1l:r,1cl: 1111<1 rl,lu,dilry dllt.y. 'l'hr:me dilmllg"lR worn proxlm,ll:ely
ClIlIAOd by the wronqrlll, ml1lJdollA, IIl1d ulljuRtl(lnd ';onducl: of
roll rc J 11.
WllrmF:F'oru:, tho plnlntlrrA Witllllrn c. f)IIvIA iI/1d S~lly Y.
f)IIvlA rOApeet.rlllly prny (or 11/1 I\w~rd in o.xnnnA of $30,000.00
111 COmponAill:ory dAmnqeB illld in punil:ivo dnmngcA
ror Gllrcla'A l/1tr:>t'fel'r:lIlee with the ':ont,r~cl:lll1t ~nd fldUchry
"UtleA owe<l to th",m by str:>ell:on Cilpll:ill line! [rJr Auch other teU,,!
I1A the COllrt dnomn IIpproprlllte.
"11-
COllN'I' V I
l"nIJd.. JJy !Jaruh
]1\. stee)toll Cl1pltrll through Ollrnl" informed the U"vll!lel!l
th,,1: l1umAr.nUA dO'l1l1mAlltR, etc., were IIAceABIUY to nnbtln f1-
tllHl[)ll1q. RhJelbHl cIlpl till IlII!IO rot'<!lld tlw IlllVIRllR to hllVII IIn
I1lld I t., or pro rormll, '1OII,III<1ted by MoVel'.
n. nh'"II.ol1 cIlp\l'Il1 1111,1 rlnrl!\.l 1111'''"<1.''1 I:ho I1/1V\fllJA to
rnlv 011 II n 1 IIrorl1111t 1 011 111111 nLltol11f>lIlfl 1111'\ thny dl,l no rplv by
110111'1 /III thl\l: wl1n nnko,l or thorn,
lA, UpOIl Il1ronnl1UolI nl1,l hollflr, I1h'olhm Cnpltnl'(1 true
pUrpOflF.l III hl1vll1'l th.. I1nvlRoR provldo tho Inrorl1111UolI, ..tc., WIIR
1101: 111 rAct 1:0 ohLn 111 n I nil 11 "0111101 tlnf'nt, hut. rllth"r to "ntl'lllg
"Ill" tho \onll nppll"lIt.lolI nl1.1 commltJllflnl: prolleRn fOl' lIR long liS
ponRlhlfl 111 orllol' 1:0 (I) provide nn milch uompolIRnl'.lolI to MOj''lr ns
pORRlhln, ntHI P) to Ollilhlo :>tflPltoll cnplt.IlI/r.1l1'd,l t.O gllln Rome
"rmtrol OVnr l:hlJ opflrllUon of thll 1I0tel throllgh Mnyr",".
:\9, 'I'ho rO'lllp.ntn ror. Inrol'mnl:lon were rlllRely mllde In thllt
thny wer.e I"Pqllontpd rOl' 1111 ul torlor l>urpOR~. wh leh WAS concellled
rrom tho llllVlnp.R, nnd tho promlRoR mnde bV :>l:p<1ltoll Cnpltnl Were
mllde with no illtollt.lon or porformlng them until stnnHon capl-
till's frAudulel1t purpoRe wns i1chleve<l.
KOI~g^GI_^U~HOBIJ^TIOH
1'or /llId ill aOllaic/erll t iOIl o( tile aervice8 to he rendarad by S'l'EEL'l'ON
CAPITAr" M'/)" II "ollnsy I Villi ill corpurllt/oll ("Steelton"), with
m/llling IIddnma ,lit '11'1 Hllrkat Street,. Suite 210, ',emoyne, PA
17043-l!l81 1I1111 JIIrM,lAM C, I)AVIS ANI) illS IIIJFI:, SAJ.1,Y y, DAVIS,
jointly IIl1d severlllly hereinllfter sometimes clllled "Rorrower, w.ith
mlllling IIddrosa c/o Allan II. Sm.ith, E:8quire, 4" North Duke Street,
York, PA 17401, norrower hereby grllnts unto Steolton the aole IInd
elw/ualve right (tile "E:xclueive Right") to aeek, find, i8aue,
milke, (lr ot/Jet'wlse oiltllln II commltmrnt (ti,e "Comm.itment") (or II
mortgllge or deod o( truat (the "Lolln") on tho relll property (the
"prollOrty") ,Iescr ibedln llnd aubatllntJlIl.ly pur-aullnt to tho terma
IInd conditiona contlllned in tile llttllr:/led E:xhill1t "A" (which is
incorporllted herel11 IInd made II pllrt hereo() or upon llny othor terms
IIlld condi tiona liS nor rower IIccepts (the "Other Commi tmen t" ).
{iUgjJ;g/LI1hJ1lLh4.Y-flJQJ:-.JLJJ~J.:J.f.llL..gL6J.Kt;Y_L(iQ1..-9~s (ro.llJJhLiJAJ&
JJliltjJ1.J.IL1!!lOlfl1J1yJJ.Lj,JLR~JJJ&JLhy_.J2lLJJartie6...JJ.!Jreto the sole dlUi
IJXQJ.1JJi..!..Y.JLngl1LML.11JlflK,..I.J.nsJI-Jl3sue, fflil&L or othfUJ'lise obtllin....Al:lf.
/Jf/lLAl&_!iQmmJ.tmflllt.i1lL....t.J.nA.MJ.ngfs) , ~n1..nJ..L../1Iort9I1g1ll~QJ.: trust
rJgfls1L/LJ....J,114t;.......J.lli.1I.r.fL.QLJ.OL!J~.Q-1J!J. secured tuLJiny or all SJ.!j/J!J.
l'-rnIHtl:1;Y--AJJSJL9LJlny......JllUll.t..l.l1~J.D1ItMl r ac'lU ired ill1!1Lovemen ts
thflOlto IIllfL.....th!lLOSJ1L.NiD. SIIALL BE IItJiLJ.{LJlfJn:J.'.Ll.lf) 7'0 7'HE FEEfS)
mCIFIEIJ...JJ1iB&!.N.......B&Sll!BDlJESS OE' BY_ OR 7'II/<<L WIIOM SAID COMl11~.
fINANCING, LOM, MOR7'Gl\fi&...-MJlJLJJll.J1lLLS'l....JJE.E:/.1 IS/ARE ......ltBB/lNGED ,
tJE..GS2T1M&I.1..c.......BQf,JfJIIT, FOU.tJD, I SSfJED-I---11},/.11i..-llliERED, GRArfl'.ED, OR
Q'fl/EBWISE OBTIII.li.EIL=-.1!Js:.LfJDJJ:l.SJ.......XlI.E.JJQBBQNJ;R - DURING 7'HE TE&'LQf.
'l1J.LS.. AGRP"'EMEN7' , ..l1is:.lAllllNG AN'Llfl)tl'JjlW..IJJN...WJ THEREOF.
In connection with the proposed Loan, Steelton will do the
(allowing:
1. assist the norrower anel/or tile Borrower's at torney lind/or
accountllnt. ("Advisora") in preparing the necessary documentlltion,
write-upa, IInd or loan IIppliclltioll(S);
2. hllve the EXclusive R.igllt to IIrrange or mllke any 10lln or
financing secuI"ed or to be secured by all or pllrt o( tllO Property;
and
3. use its best efforts to obtllin II 10dn commi tmellt or
commitments {or tile Loan described in Exllibit "A" hereof.
SteeHon slllJll be (ree to soek out any lender(s) and/or lendar
plll'ticipant (s) and to excllange any and allin(ormation about the
Borrower, the Property, and/or IIny mlltter(a) related thereto.
A
lllllle two
S/;ee I tOil s/llIll 1111,1 w j 11 110/; tift re</uJ red to /I t test to the acauuoy,
clOmpletenClss, or vlIllel tty o( III1Y st.lltClmell t IIhout t/le Borrower, the
property! exJst.lllq or propoaed imllrovCI/J/ell/,S thereto, tile necessllry
or requ rf/d ,/oVenl/J/elltlll IIppl'OVllls to eOllstruct, OWII, anel/or
operllte tllo Pr<lllf/I'ty, the (11In/lcdlll (ollsJblllty o{ Iluch operlltioll
IInrl/0r o( the 1,01111, the cOlldHioll of 1.//fI Property, ata.
Borrower llgl"eea ~o mllke 110 e( fort (/I) - dlJl'illg the torm o{ thia
Aqreamellt - (I) to ohtllill, prodl/ce, or sooup, IIIlY commitment(s)
IIl1d/or lolll/rs) secured or to be seeurod hy 1111 or pllrt o( the
Property tflru I.//eir I Hs OWII act or tllrl/ the IIct o( IIny other
persoll, (J,n", or corporll t ion; (2) to IIssigll, encl/mher, or pledge or
ill III1Y way cllllllgo the eql/itllb.le lllld/or llflllot.icllll title IJnd/or
Intereat in the Proparty (which .Is now ho.ld IlY Ilorrower 111'1 tenllnts
by the elltiroties 1111<1 lIot liS tOilll/Jts in OOJII/J/olI), '1'0 DO SO IS AN
1HHf:IJCA'I'E: m:FAlWI' lIY IJORROWEIl IIE:Rf:UNIJEIl AND A nTlE:ACII DE' TIIIS
AGlllI'E:HE:N'I'.
No gUllrllllty or wllr/"ll/ltyia mllda by Steelton thllt III1Y commitment or
fillllnclnq will iJO obtll.inod or mltde, only thllt StAelton will use ita
beat efforts to /!leek, [Jllci, iasl/a, milke, or otherwise obtain a
commitmellt for the 1,oan descrilled .in the a/;tac/led E:xhibit "A".
BOl'rowor IIgrees to accept IIIJ<I to settlo upon a commi tmont tor
a Loan al/bstllntilll.1y under IInd subject to IInd contillgent upon the
terma and conditJolla contllined in E'xhibit "A" Ilereot tile
Commitment - or thllt OIICO BorrOWer accepts any ot/ler commHment
(the Otller Commitment); then Steel ton hila earned and ia due its
(ee(s) IlS hurein provided.
norrower IIgreea to promptly (urniah sUell data IInd exhibit/J liS
Steelton lind/or any lender (a) acting tllerewitll mllY reasonably
request concerning Borrower line/or the Property. Al.l documents,
drllwings, blueprints, appraisals, etc. ("Lolln Documentation")
submitted to obtllil/ the Loan CommJ,tment shall become the exclusive
property o( SteeUon IInd Steelton ia under no ob.ligation or duty to
return the J;olln Documentlltion to anyone. Further, Steel ton may
copyright the LOlln Requeat which it prepares to aeek (inllncing.
Addi tionally, Borrower IIgrees to IIttempt in good {ai th to comply
with the terma and conditiona o( any lo11n appllclIUon, letter ot
intent, exclusive authorllllation to de.liver II commitment, /lnd/or
loan commitment (or the Loan - which Borrower executes. Borrower
(urther llgreeB to deposit auch security, "good (lIith", oc escrow
deposit(s) as such agreement(s) require and to pay 1111 o[ the
agreed andlor usual diabursements normal and incident to s~iel
agreement(a) lind/or the LOlln cloaing; includ.ing without .limitation,
IIpprllisal (ees, credi t report cllllrges, tit.le insurllnce charges and
premiums, engineering reports and atudiea, recording and tiling
(ees, mortgage stllmps or tllxes, survey chrJrgea, etc.
IlIIgO threR
nor rower rRIWe/lell t/l 1111.1 Will.,. II II 1./1 tllll'; /IllY 01'111 ot' wrl t tell
ntlltemnllt/l or IlIformllt./lJI' or 0/(11111/1./1 /lupp/lml Ill' mlldo by t/lo
norruwer t.o Nt.eoHolI IIlId/or' IIIIY 100/llflr (1/) t,horflwlth lJt' t/lers(or
iII/lire tnw, ,mrnlllt., nil" l!omplnt.e,
111 t.he evellt /.IlIlt .'Itflfl/tOIl n/lll/l. ohtlllll O/, mnka II commitmellt or
commitmoll1.1'1 (or 1./'9 1,00'1/1 1/ll/I/ll.nllt./lllly ullder tile terms II lid
condi t ilI/J/I of Exhl hit "A' (t.ho Comm i tmoll t) Ill' l/llOlI /IllY other terms
/lnd COIIIU tiulla IIccflpt.ed /ly Ilorruwflr (tho other commitmoll I.) /
Burrowor IIlJreea to pny t.o .'I t. eo I t.OIl (II "1,01111 f'1 ncemellt F'ee or Feea")
- of two (2\) percollt of t./'9 mllximum 10111/ IItnlll/llt: - OIlO-hlll( (1/2)
UpOIl tllO I tm 1111 lice o( t.ho Comml tmoll'; or /lCCeptllllce of tile Other
Cllmmitment IInd t./le hnln/lce IIpoll tllfl flllrllnr of tho I/attletnent o(
/1111" f//llllll!Jnl] (/I) or t./llrt.y "llyn tllfJrtJII(t;or.
AU 1'11l11flmollt Fees nre to 1m pllld t.o StueltlJTJ by cIIsidera or
l:nrtifie,I choc[llIe, wlr'o trlll/nfel', t.1 tIll complllly/ngellt SHerow
checl]uB, or" eSCl'llW checque o( t.he set UAmAnt. IIl]Ant. Addit ionllll~',
Steelton mllY IIpply ,lirectly to IIl1d recoive directly (rom IIny
lendor, tit:1e compllllY/lIg0l/t, oncrow or settlomellt llgent its
Pl11cemellt E'ees w1t:h n photocopy o( thJs Agreement being Borrower's
irrevocllblo etwrow or settlemellt inst.ructlons lIuthoriv.illg direct
llllyment to Steelton o( ita Pll1cement E'ee8 11",' indemnifying IInd
holding hllrmless llny lender(s), title cumllllnY/llgent, I/ettlement
lIl]ent, lind/or ol./lor person, (.irm, or corporal.ioll (rom IImJ llgllinst
Ilny and all liability, 10as, cost, or expella~ - including legal
toes IInd costs - (or such direct disbursement(s).
Borrower underatands alld IIgrees t1111t Steel ton may receive
Ildditiollal tees trom a lender or lellders (or servicing and/or
originllting loans tor norrower or A(tl.lillted Elltities - without
(urther discloaure to IInyolle. Also, Steel ton mllY be the lender or
he II pllrticipallt therewith IInd be compensllted therefor - in
add.ition to receiving the Placement F'eos.
With the execution ot th.iB Agreemont, Borrower depoalts with
Steelton the sum o( $2",000.00 (1.1/9 "Good F'llith Deposit or
Depos.it") /JY~U-9};_....s;!J.J.:.t.J..tied C)J~!LJ}lIyablo to Steelton
CJIl21.tal. Lt;~-ERJ;nJW........l!Q9.Q!11J.L. the receipt o( which is hereby
acknowledged. $750.00 of sllid Deposit ia immediately e,llrned an is
IIbsolutely nonre(undllble as II processing, site inapection, and
underwriting (ee (tile "Processing Foe"). 'Phe balance of the
Deposit shall be held in eacrow by Steelton Ilnd either creditsd and
Ilpplied - without (urthor notice or IIpprovlIl - toward /lny PllICllment
F'ees due Steelton ullder this Agreement or a/lould no other
Commitment be issued 11/1(1 llccepted by Borrower, the Deposit (less
the Processing Fee) shall be returned to Borrower without interest.
It .ia turther' understood and IIgreed that the entire Deposit w11l be
torfeited .if II 101l1l commitmont Clln not be .issued pursullnt to this
Agreement. beclluse ot Borrower' a ll1ck of cooperlltion or
/1IIf/0 (01/1'
IIrllltrllry refllRIII to e:omp/y wlLh tho IIRI/III "nel CI/stomllry rtl'luests
1./lfft mllY he mn<le prnco,lel/I, 1,0 1,Im "P/JrovIII IIne//or iflSUllnce o( II
emmm.ltmnnt, ell' If lIellTOWrl/' mlnrnprFlRnnl.n ml/torilll fllcts I/pon l~hich
S',nrll'.on flnd/ll,. flnr lon,lrlr (nll/':t I nq thorew I th or therefor hllS/hllva
re 11 ee/, or If Stao I;on' n Nltc I/sl vo IIllfh I. I/J IJroflcllo,/, Cllnce 11ecl, or
V.iol II I;a<l ,
11/ tile eVent 1;/14/. flny lalldor(n) IIllr//ot' /Jllr/;lclplllltR therewith (now
or <II/ring I,ho Nil I, it/omollt /Inriod, IIR horelllll~ter defined) or IIny
IIgont(a) or co!'reRpol/dol/l.(R) Ol' other Intermocl./llriea thereo( with
whom Steeltol/ "flR lIegot.latecl with and/or offot'ed (inllnc.ing (or
IJorrower durillg /;he term of thiR AgrOll/1/el/t IInd al/Y elttensiol/(s)/
shllll IMko II r:omml tmol/t 111/,1/01' lCJlIII or 10al/s llnd/or other
11/vestmel/ts I~i/;h or /,0 lIorrowor 111/"/01' /;0 IIl/y (irm, partnership,
joil/t 1I"vel/tllrn, trust, limited lillbillt.y Compllny, cOrporlltiOI/, or
othel' entHY/1I whicll norr<JI~or IIfls ,'n olflli tllble or benel1cilll
il/tore8t (the "A{(i/lflted li'I//;it;Y/~"ntit/fJR") I~ithinll period of ton
(0) Yeflrn (the "Ii'I//;/I;lnmont PeriOd") t"ogarellesR o( the
pllrpose(s) o( snl<1 commil.mel//;(R), /Olll/(R), IIl/d/or iI/vestments _
Stnelton nhfl./I lio anti tied to the I'lllcamellt Fee(s) sPoe:ified herein
fOI" ollch fillflllcillq.
!lorrowOI' flgre13R to 11/damlllfy lll/d hold lI11rmless Steelton al/d IIny
o((.icor, tUroctor, emp/oyen, llgont, lJOI/SUltlll/t, or independent
contrllctor tllRreof 01" therofor, witll ronl'act to ally IIllel 1111
11l1bility, 10sn, r:ost, or expenso (inclUding logal (een and ~onts)
rell1t.ing to cll/lmn arin,lng (rom oral or wr.itten informlltion
furn,ishad 11Y 1I0rrol~er lind/or 1I0rrower' S "dv.iRorn to Steel ton and/or
IIny lendor(R) IIcting therefor or tllerel~i/;h or for the failure of
tile /Iorrownr lind/or Borrower's A<lvinorn to dinclone or Completaly
disclose il/(ormlltion llbout fllly matter and/or for any claim(n) from
IInyone for brokernga, finder'n, or othoc' (ens related to any
finllllcing(s) horeullder.
It 11'1 understood I/nd agreed that allY informatioll submitted to
Borrower by Steeltoll nhll11 be from sourcen deemed to be reliable,
ho"vor, '00/, '0 to,,", ti 00 ,or hmo.octi "0 10Odoro, hOrtic lp,,,o,
agents, correspondellts, or other intermediilries thereOf) need not
be verified by Stneltoll or qUalified llnd thllt no l'eprenentation or
Wllrrllllty concerlling the same in made or should be impl1ec/. The
BorrOWer IIsnumes tllfl nole llnd eXclUsive reSIJonnib.i l.ity for IIny IInd
11ll tranSllction(s) entered into IInd represents llnd Wllrrants thllt
Steel ton hilS recommended thllt Borrower soek legal IWd tax Counsel
to review this Agreement IInd any commitmont(S) lind/or l01n(S) or
other financing before acceptllnce thereof by Borrower.
S'ooltoo, ,"dlor '"y o",lty ..w, whom .It .10 ,o,ocl"'d, 10 horoby
lIuthor lzed, UPOIl tile COnSl/mmat.ion of IIny financlng(s), to plllce
SUch advertls.lng il/ IIny media, llt its expense, conCernlng the
'rooo,ctioO(O). Dorro..r w1JJ I>'.eo . "go (hrovldod by
\
,_.
/lIJge r I vo
Slee!t.o/l) ~ ,'urL/I'I U,o lJOllRtructJOII 01' rellovllt1011 /mriod ~ Oil /IllY
lJOII"t;ru<Jt1oll 1I11,I/'ll" rOlllJvllt.lon ".lttt(R) 1/II1I11/J1;/1l'l thllt stoelton
/J/I,I/or II1lY olltHy wll./I whom It is lI/Jlloalllt.O", /I/Ja /JITIIIlqod or mllde
II/Jtd flll/JIllJ/Ilq(R). Ihl/TOWOr 1I'11'nO$ t.o 1111/111'0 lIueh 111.'111(11) 111111
prov ido comp/lrRlI1/ I ve, )Jroll,1 form fl/l<lOl'lIrlrl., '10llR I'n 1 I t/Jbi 1 i ty
lIOVRl'lI'1R of nt. lRlIst $1. ,eJUu,UUU.eJeJ - pOl' IIl.gll - 1Ill/llillq stoe1t;o/l /Ja
II Joss /lIlYAO IIlId IIl8UrfJlI pllrt.y A'rIMA - with II prior l~rit;tell thirty
(30) "IIY IIOt./.,:O ()f e/llloo/lllt;loll of 8/J1<I I/JI/Urllllllo to stRolton.
furUlor, /!orrowol' n"reoll t.o I/Jdellllll fy 1111<1 Ilold hllrmlells stoel tOil
lllld/or II1lY nlllloclnted lel/"Rr(lI) 01. otho1' ellUt/ea (rom 11/111 IIqfiillllt
II1lY IlIl,I /Ill lI/Jb.I,lIty, 101111, ':0111;11, 01' expe/JI/ea (.illclud.illg .l.eqlll
foo" II/Ill oostll) rolnt/II'I t.o or /Jrislll'l out of IllIi" aign(ll) fi/Jd/or
dlllllnCjRs or IlIjury to pOl'/WII9 01' propurt.y elll/sod therehy.
'1'/l.Is AgrflRmell t shill J be <lEIAIII,"1 t.o hllve booll ontered 1.llto, mil do , llnd
"ellvllre" III 1,0moYl/e, I'o/l/IRylvlIlI in with III1Y 1111" 1111 llct.lons 01'
illllet. la/Ill of stool tOil de O/llf/l I to hllVR Imoll tllko/J 1/J PA II/Id shall and
will - IIny prlnd'll'UiI o( eOlln ictll of IlIw notw./thlltllnd.ing - he
qovonlod by PA I.llw IIl1d COIII'tll. /ly RXEWU tioll heroo(, thill AgreemEiIl t
s/'lI11 Illl" will be logll11y billdlllg UpOll the IJ/lrt lell hRl'eto, their
hel.l'Il, IlUllCeS1/0rll, ndmin is trll tors, exm:u I;urs, or llssigns; shill! not
be amellded, clIlIllged, or mod 1 fied except .ill I~ri t./ng signed by 1111
pllrtills hereto; Is Ilot lIssiqllllble by norrowor; slln!. 1 survive IInd
not be merqedlllto Um dolivary or settlemellt of allY commJtment,
deed, fillnnc./Ilg, illvestmellt, 101111, mortgnge, trunt deed, 01' IIIlY
other ovellt or i/Jl/t1'ument. If IIIlY portioll(ll) of this Agroement
shall be ruled invalid liS to PA or federal law; the remllinlng
portioll(ll) shllH remain .I,n (ull force alld e[[ect as if th.. illvlIUd
portion (1/) Ilever existed. Also this Agreement aetll (orth the
entire IIgreement and ullderl/t.llndlng by and between the pllrtJRI/
thereto merging here ill allY iJ/Jd all contemporaneou1/ alld/or prior
IIgreements or understalld./Ilg.s.
ny executioll Ilereo(, ench party represents llnd warrants to the
other roceipt o( II complete copy hereof and that 1/11id party has the
ablwlute IInd sole authority and ollpac ity to enter into thia
Agreement lwd the propol/ed I,O/JI1 wi thout nny further IIpprovllls (rom
llnyone and that this Agreemont does not vl01aLo or interfere with
any other agreement(s) or under1/tandlng(s).
Should narrower callcel or breach this Agreemen t, steelton as
liquidllted dllmllges, its BctUlIl dllmages being di((lcult to
ascertain, shall be immediately elltitled to nlnety-(ive (95\) of
the Placoment Fees specified herein during the Entitlement Period
a" i( thia Agreement were in full (orce and effect and to retain
the bllll1nce o( the Deposit as ellrned and crediting Bald Deposit
/lgainst the 95\ o( the Plllcement Fees due it. In such event,
Steel ton ahllll also be entitled to reasonable legal fees, costs o(
collection, court costs, and interest at the rate o( twelve (12\)
percent simple interest (rom the date that the Pl.lcement Fee(s)
... . "._.-.-.. '.
"
.. \
page eight
S~cURI'I'Y I
r.oan to be I9V idenaed by /I mort\l/19fl,
note, ooll/lteral /lsslgnmflnt o( nnd /I
"flourHy Interest In tIle propflrty and
all flx.isting or IIereinll(ter Itaquiredl
improvementa therflto /lnd tllflreo(, all
lllases, rents, 1111<1 i/laomes thflrfl(rom,
all (urniture, (lxturea, mltchinflry,
and equlpme/l t used or useful in thfl
opflrlltlon /lnd m/llntensnce o( the
hotel/motol property - ItS II valid
(irst lien Uloreln, thereon, Itnd
tf,ereto
D~B'l' COVERAGE I
LOII/l to ba uncondit ionlll J y personally
guaranteed by the Dorrower
Not to exceed 60\ o( the f/lir market
valuo liS detormined by /In appraiser
I.Ind IIn IIpprn.isal in form IInd content
/lccoptablo to Lender.
1.25 Minimum using Lender's
underwr.iting IInd IIpprllialll guidelines
AIJIJI'l'IONAL COr.r.M'/URflL I
LOAN VAWEI
G~NERAL TERMS ANIJ CONDI7'IONS I
1. Borrower to pay Lender'a rSlIsonllble legal (ees and costs to
pr'epllro, record, (ile, IInd settle the LOlln Documents.
2. Borrower to provide such certifications, opinions, and
resolut.ions as Lender may request as to valid orglln.ization, binding
effect o( the Loan Documents, lIuthority and capacity to execute
same, the phyaical condition or the operation of the Property, etc.
3. Borrower to provide evidence that it h/ls obtained 1111
necesaary or required permita and approvals to 01m, revovate, and
operate the Property - inclUding, without limitntion, a valid
liquor license.
4. Borrower to pro v ide I,ender wit'. a hazllderouB waate study from
a (irm IInd in (arm llnd content IIccept/lble to Lender showing the
Property to be (ree of any hazaderous wlIstes.
5. Borrower and Guarantors to provide annual financial statements
to Lender, prepared by an independent certified public accol/ntant
and in form and content acceptable to Lender - within sixty days of
the close o( each calander year.
IIViL 11\
11'1'-' II',-j I'" I
",11,\111111111111'111
U Its'r NiI"V","'J: .'lIUWI\IQAIII...hU'ramalIAOUOI
'rh'" . 'l' ,.."", ,hh' '" ".,. ,..,,,d..,,,,.." I ." ,. .,,,. .." ",,,nd, "hon", ond
.'". \I, n ".,.",,, "0"""'" ,""", ,.,.. "" I "," "",,,,,..,n'"'' "I "".
"." ho ",.1 "" ,,' ,,"J h'to """ . tl,l. J "" ,. ,,"" p. .J. ."., .....,
I. ..V'" 11",,,\1' ",d ....".1\, "'" ""..." I ""I ........ ,........
.... ("" ...,.",," , .. .1I.h "td ., ,....". , '",01 p" ,. ..", hO" I" ,,'
rll(orAnCA /III" 1"/1'\11I !l pl.\/:~, herllu[ - IUI fullllWRI
.. 'h. h" ".., ". ...".."... "l ~ '" ..00 ,0' ", "",h I ,n". " ",.d H,d
.,10"" I"" "',' " ., ,,,,,.,,,, "0" , """ '0" J "01"".,,. ",." ,... An u...,,, to
l1t.eel \:'.111 I 1111,1
7.. thll I\'JI'Aement 1'111(\ t,hifl F irnl. I\meU,lillflllt. ",ay \lA 111111111.lnrl by a
.... ,,,' . """...,.d .N" ...dl'" ""ou,,,, '.10"0 . "l"' ..."h' """ ., ",
..id "f"l( copy" bll!lIq the ISIlI" "A an (Jdqlnn1 of t,hll wdt.lnq.
. U to ,.., .""", d.n.'/ on" no,...."" 0 l . h. ;'1'....".. "", .....d.d,
ohllng"d, or \I\C)cI\U_d lJy tllLn rirst lIl1\tllldl118nt r.lmlll..n in full [ore.
.nd . [[ 00' .,. h .h' ",.....,t ",d .h" "", M."d..." ..1" 0",
ftqrllemynt or contract.
1 ",." no" n, ." ho ".,11' ,,,,,,,,d "n.h" .. h. ""d." I ,nod .... ...
thyl r' hond. ant.! AM\' all lJf t,hlll .:..L d"Y of July 199:1,
1/', ,) i("
- / ( {I, (t' (f ,(.~-
W11,I.TJ\M C. PAV1A
" --"
(seat)
_Jz.()'\ ~ (\ I~';J--'
I1AI,I,Y 'I. 'i\J\V 1 t'l
(BIIl"I)
A1'F,F.LTOll 1'.:11111 '\'1\1,. 1,1'0.
\
\
Byl.
Gf'orqe ,1.
Ch/lh"'"fI
1111 WI'
!1'J..J4t1
\)
D
Wfl.uHIlH'L'I.o .JiOR'Ii.GMZ. I\U'liltgRl JA'lIOH
WlIF.l~E^S, S'l'f:f:r.Jl'ON CM'l'l'^[" [,'I'll. ("Htenlton") IInd WIl,I,I^M C. MID
S^LLY Y. P^V1R ("norrowor")hnve entnred lnto II cortnln Mortgage
Mlthori7.atlon (Ill;p:eemont), dnted Hi .July 1993, (the "Mortgllge
^uthod.7.ntlon") _ whlch lain<:orpornt.Il'\ herein by rllCerencll and
mnde a part herllof - nnd
WlIf:l~f;^H, stool ton nnd
amendments, changos,
^ut.horl7.ation.
Uorrowor WiRh to confirm the
nnd modifi<:ntl.ons t.O snl.d
following
Mortgllge
NOW 'l'lIf:HELrOllF:, tor good nn'\ ndo1jUntA c'JllRidoration (which iM
Bcknow IAdlJ,~d by llellTOWOr., int.llndln<j to bn 10<lall y pound ther.eby,
norrowor and Be lier IIIl1ond, chnn\lo and modi fy tho Mortgage
^uthori.7.atlon as fallaWi'll
1. Hteolton's oxcluaivo rlght poriod to IIIAke or AI:ranljO financing
ie. extended, without lntorruptlon, Frol1\ 15 Bnptombor 1993, to
midnight on 30 october. 19931
;1.. the l'rocflsolng Foo to incroBfled by $'/50.00 wInch su.elton is
authorl7,ed to d.iobut.'so fr.om tho fJoocl ~"lI.ith Peposit. held in its
eacroW account upon oKocution of this /lgreomentl
3. from tho Good Faith oeposit, steAlton Rhall be author.i7.~d to
diaburae to nny Appraiser chosen by narrower nnd Acceptable to
steelton, $5,000.00 ohould Auch npprntoal be required to apply for
and/or closo a Ianni
4. upon delivery of n 1,0111I COI1lI1\.itI1\Ont BUl,'lt8ntiall.y 813 outlined
.in the Mortgngo ^uthor.i7.At.ion or of any othel commitment accepted
by Borrower, llorrOWllr. will pny to stoe I ton Olle (l'ls) pot'cent of. said
loan 8mount by permitting Stoolton to crodlt Bny oscroW deposit,
held, redeem..ing tho note held hy St.eolton, and payment of the
balance in cnsh _ 80 if a one (1\) percent eocrow depos.it were held
by steelton.
'l'he other terl1lR, cond l t..iono,. and covenants of the Murtgage
^uthori7.ntion not changod hereby remain in full force and effect
with the Mortgage l\llthori7.ntion and this ^yreement being one
agreement.
,
IN WITNESS WlIEREOr the undersigned parties have sot the.ir hand and
seals.
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.JQOJfD AMIGHlKTJ-'UmBiOAU-AllfJlQJU.IM1QJI
WII/llRJ!:AB, f1'rl!:~;r.'l'ON CAP I'rA'"
BAL[,y V. PAVIB ("llorrower")
Authorhation (aqreelllllOt),
Authorization") - which Ia
made a part horoof - nnd
WII~:Rl':AB, Btell L ton and lIon:ower havo onterlld into Il certain
Amendment to Mort<jllqe Authorizntlon ("l"irat Amendment"), on 15
Septenblll' L991 - which Firat Amondmont: is Incorpol"llted htrein by
reference And mAde n pnrt horeof - find
'JI'lJ. ("Steelton") /lnd WILLIAM C. ANP
hnve entl/red into II cert/lin Mortgage
dated 15 .'uly L'1'13, (tho "Mortgage
l.ncoq.lOrated heroin by referenoe and
wm:Rr-:MI, Stoe L t.on and
fimendll\lmts, changes,
Authori~ation and Firat
lIorrOW'lr wl.sh t.o confirm the
nnd modifl.catIons to said
Amendment.
fol Lowing
Mort.gage
NOW 'l'IIEREFORE:, for good and ada<juate conaidllratIon (whl.ch is
a~knowledged by Borrowar, Intending to be legally bound thereby,
Borrowar and Staal ton amend, (JllBnqe and modify the Mortgage
Authori~ation IInd tho First Amendmant. thoreto aa followSI
1. Stelllton's axclueiva rIght pariod to make or arrango financing
has bean and Is extendad, without intorruption, from 30 October
1993, to midnight. on 31 January 1994;
2. Borrower, as a conditIon to tha issuance of a Loan Commitment
and fundIng of tho Loan will contract with Y J Associates, Ltd.
("YJ") to provide various financial consulting advice and services
to Borrower which shall inclUde, w1thout Limitl\tion, the
installation of a finl\ncial accountIng syatem for the Property,
automation of said system with the ability to produce monthly
financial accounting statements, Ilssistance in salection of an
independent cartified public accounting firm (who shall be
acceptable to Lendar) to provide annual f.lnllncial statements on the
Property and tho Borrower/Gullrantor;
3. llorrower, as a condition to tho issuance of a Loan commitment
and funding of the [,oan agrees to retain a hotel/motel manag'lment
company to provide marketing services - Including a marketing plan
for room and food and beverage ravenues. Said firm and contract
shall be acceptable to the Lender;
4, In tha event that Borrowar is unable to meat the budget - as
prepared by Y J and/or as is amended and acceptable to Lender _
for two consecutive quarters In any Loan Vear; Borrower, as a
condition of the Loan, 1'1111 retain a hotel/motel management company
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