Colfax Federal Complaint

Craig J. Capon, OSB #981928
craig.j [email protected]
C. Robert Steringer, OSB #983514
[email protected]
HatTang Long Gary Rudnick P.C.
360 E. 10th Avenue, Suite 300
Eugene, OR 97401-3273
(541) 485-0220
Facsimile: (541) 686-6564
Attorneys for Plaintiff GE COMMERCIAL
DISTRIBUTION FINANCE CORPORATION,
a Delaware Corporation
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
GE COMMERCIAL
DISTRIBUTION FINANCE
CORPORATION, a Delaware
corporation,
Plaintiff,
v.
CYCLE SPORTS OF SALEM,
INC., an Oregon corporation,
DAVID E. COLFAX, an
individual, KATHY COLFAX, an
individual, CAPITAL
NORTHWEST, INC. an Oregon
corporation,
Defendants.
Eugene Division
Case No.: __________ _
COMPLAINT
(ACTION FOR CLAIM AND DELIVERY
OF PERSONAL PROPERTY, BREACH OF
SECURITY AGREEMENT AND ACTION
ON GUARANTIES)
Plaintiff GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION ("CDF")
for its Complaint alleges as follows:
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SECURITY AGREEMENT AND ACTION ON GUARANTIES
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PARTIES
1.
PlaintiffCDF is a corporation organized under the laws of the State of Delaware, with its
principal place of business in the City of Hoffinan Estates, Illinois. At all times mentioned
herein, CDF was registered to transact business in the State of Oregon. CDF is the successor in
interest to Transamerica Commercial Finance Corporation ("TCFC").
2.
Defendant Cycle Sports of Salem, Inc. ("Borrower") is an Oregon corporation which,
upon information and belief, has its principal place of business in the City of Salem, Oregon.
3.
Defendants David E. Colfax and Kathy Colfax, upon information and belief, are husband
and wife and reside in the City of Keizer, Oregon.
4.
Defendant Capital Northwest, Inc. is an Oregon corporation which, upon information and
belief, has its principal place of business in the City of Salem, Oregon.
5.
Capital Northwest, Inc., along with David E. Colfax and Kathy Colfax are collectively
referred to as the "Guarantors".
JURISDICTION AND VENUE
6.
This Court has jurisdiction over this action under 28 U.S.C. § 1332, because there is
complete diversity of citizenship between Plaintiff and Defendants, and the matter in controversy
exceeds the sum of $75,000.00, exclusive of interest and costs.
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7.
Venue is proper in this Court pursuant to 28 U.S.C. §1391(a) as this is the district in
which Borrower and Capital Northwest, Inc. have their principal place of business, in which the
individual Guarantors reside, in which some ofthe acts giving rise to this action occurred, and in
which the property at issue is located.
FACTS
8.
CDF's principal business is a type of secured lending called "floorplan financing" or
"floorplanning," which is the financing of a dealership's purchases of inventory from
manufacturers and distributors which the dealership will then attempt to sell to retail customers.
9.
Under the floorplanning arrangement, the dealership promises to hold the inventory
financed by CDF in trust for CDF until such time as it is sold, lost, stolen, destroyed or payment
becomes due pursuant to the particular plan under which it is financed. Upon one of the
foregoing occurrences, the dealer promises to remit to CDF the wholesale invoice price financed
byCDF.
10.
On or about December 6, 2000, CDF, for value received, entered into an Inventory
Security Agreement (hereinafter "the Security Agreement") with Borrower, under the terms of
which Borrower pledged certain personal property as security for repayment of the amounts
borrowed under the Security Agreement. (Security Agreement, dated 12/6/00, attached hereto as
Exhibit" 1 ").
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11.
Pursuant to the Security Agreement, Borrower granted CDF a security interest in the
following property, whether now owned or hereafter existing:
(i) inventory, accounts, chattel paper, documents, equipment, fixtures,
general intangibles and instruments, (including without limitation and
whether or not included in the foregoing, Seller Credits, deposit
accounts, certificates of deposit) and books, records, disks, and tapes,
(ii) all accessions, accessories and replacements to or of the foregoing,
and (iii) all proceeds and products of the foregoing ...
(hereinafter collectively "the Collateral").
12.
CDF, and/or TCFC, as CDF's predecessor in interest, perfected a first priority security
interest in the Collateral by filing with the Oregon Secretary of State's Office Uniform
Commercial Code Financing Statements (UCC Forms 1 and 3, of various dates, attached hereto
as Exhibit "2").
13.
On or about December 6, 2000, David E. Colfax and Kathy Colfax, as husband and wife,
executed a Guarantee (hereinafter "David and Kathy Colfax Guarantee") by which David E.
Colfax and Kathy Colfax, jointly and severally, guaranteed to CDF the prompt and unconditional
performance and payment of all current and future obligations and liabilities of Bon'ower to
CDF. (David and Kathy Colfax Guarantee, dated 12/6/00, attached hereto as Exhibit "3").
14.
On or about June 13, 2003, Capital Northwest, Inc. executed a Guarantee (hereinafter
"Capital Northwest, Inc. Guarantee") by which Capital Northwest, Inc. guaranteed to CDF the
prompt and unconditional performance and payment of all current and future obligations and
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liabilities of Borrower to CDF. (Capital Northwest Guarantee, dated 6/13/03, attached hereto as
Exhibit "4").
15.
The David and Kathy Colfax Guarantee and Capital Northwest Guarantee are collectively
referred to as "Guarantees".
16.
Under the terms and conditions ofthe Security Agreement, CDF extended credit to
Bon·ower to allow Borrower to take possession ofthe Collateral to be used and sold to the
public.
17.
CDF has perfonned all conditions, covenants, and promises required by it on its part to
be perfonned in accordance with the tenns and conditions of the Security Agreement.
18.
Because CDF's collateral is readily movable, CDF is at great risk that its collateral will
be sold out of trust. As an aid in monitoring the status of its collateral, CDF periodically inspects
its collateral. The employee charged with the duty of inspection is known as a Field Service
Representative, or "FSR," and the results ofthe inspection are reported on a document entitled
"Inventory Inspection Summary Report," but more commonly referred to as a "Floorcheck
Report".
19.
The Security Agreement provides that Borrower will be in default under the Security
Agreement if, among other things, Borrower breaches any tenns in the Security Agreement or
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any other agreement between CDF and Borrower; or Borrower fails to pay any debt to CDF
when due and payable under any agreement between CDF and Borrower.
20.
On or about July 15, 2010, CDF sent Borrower and Guarantors notice by letter that
Borrower was in default of the Security Agreement by failing to make payment to CDF when
due and further notified Borrower that its credit facility with CDF had been suspended. (CDF's
Default Letter dated July 15, 2010 attached hereto as Exhibit "5").
21.
As a result of said default and the continuing inability to have Borrower fully cure said
default, on or about July 19, 201 0, CDF sent Borrower and Guarantors notice by letter that
Borrower's credit facility with CDF had been terminated, and further notified Borrower that
CDF accelerated the accounts related to the Yamaha Motorsports, Marine, BRP and Powersports
credit facilities and CDF further made demand for payment on Borrower and Guarantors for
payment of the full accelerated balances due and owing to CDF. (CDF's Acceleration,
Termination, Demand for Payment Letter dated July 19, 2010 attached hereto as Exhibit "6").
22.
Borrower has sold Collateral without remitting the proceeds of said sales to CDF
(hereinafter referred to as "sold out oftrust" or "SOT"). The value of the SOT Collateral as of
July 14, 2010, is $215,755.15. Borrower's failure to remit proceeds ofthe sale ofthe CDF
Collateral constitutes an event of default under the Security Agreement.
23.
CDF now has a reasonable beliefthat Borrower does not have in its possession enough of
the Collateral to satisfy the outstanding debt due under the Security Agreement.
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24.
Borrower is in default under the terms ofthe Security Agreement by failing to make
payments due under the Security Agreement. Guarantors are in default for failing to make
payment of Borrower's obligations to CDF.
25.
In light of Borrower's and Guarantors' continuing default under the Security Agreement,
and failure to pay the accelerated balances due and owing under the Security Agreement and
Guarantees, CDF demanded return from Borrower of the Collateral. (CDF's Demand/or
Collateral Letter dated July 20, 2010 attached hereto as Exhibit "7").
26.
As of July 21,2010, the following amounts are due under the Agreements:
$3,252,109.77, which includes $3,017,204.40 for collateral inventory still in the Borrower's
possession, $215,755.15 for SOT Collateral and $19,150.22 in accumulated and unpaid interest.
27.
Interest continues to accrue on the outstanding balance in accordance with the terms of
the Security Agreement.
28.
Upon infOlmation and belief, the Collateral has not been taken for a tax, assessment or
fine or seized under any execution or attachment against the property ofBOll'OWer.
29.
Based on information supplied by Borrower that the Collateral would be held at such
locations for retail sale or storage, the Collateral currently is located at the following locations:
(a) 4764 Portland Road NE, Salem, Oregon 97305;
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(b) 1465 Johnson Street, Salem, Oregon 97301; and
(c) 555 River Road, Eugene, Oregon 97404.
30.
After demand for the Collateral, Borrower has refused to voluntarily surrender all the
secured inventory that remains in Borrower's possession.
31.
Under the Security Agreement and Guarantees, Borrower and Guarantors are liable to
CDF for all costs, expenses, and attorney's fees incurred by CDF upon default.
FIRST CLAIM FOR RELIEF AGAINST BORROWER
(Claim for Delivery and Possession of Personal Property)
32.
CDF re-alleges and incorporates herein by reference the allegations of the preceding
paragraphs of the Complaint as if fully restated herein.
33.
Pursuant to the terms of the Security Agreement, Borrower's default gave CDF the right
to possess any and all Collateral covered by its perfected security interest.
34.
Upon information and belief, Borrower is wrongfully detaining the Collateral which is
the subject of the Security Agreement, and accordingly, CDF is entitled to immediate possession
thereof.
35.
The Collateral being wrongfully detained has an approximate value of $3 million dollars.
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36.
Upon information and belief, the Collateral is being held by Borrower as retail inventory
to be sold to the public at the Borrower's Locations in Salem and Eugene.
37.
Upon receiving confirmation of the filing ofthis Complaint, CDF will immediately post a
bond in an amount, $3.2 million, sufficient to cover all damages which Borrower may sustain by
reason ofthe attachment or taking ifthe same be wrongful or without sufficient cause.
38.
CDF seeks an order of this Court which awards immediate possession to CDF of any and
all Collateral for which CDF has a perfected security interest and which is in the possession,
custody, or control of Borrower.
SECOND CLAIM FOR RELIEF AGAINST BORROWER
(Breach of Security Agreement)
39.
CDF re-alleges incorporates herein by reference Paragraphs I through 31 as if set forth
fully herein.
40.
The Security Agreement represents a valid contract between Borrower and CDF.
41.
CDF has performed all conditions, covenants, and promises required by it to be
performed in accordance with the terms and conditions of the Security Agreement.
IIIII
1//1/
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42.
Borrower failed to perform its obligations under the Security Agreement. BOlTOwer's
failure to make payments to CDP as required under the Security Agreement constitutes an event
of default under the Security Agreement.
43.
As a direct and proximate cause of the foregoing breaches by Borrower, CDF has
suffered damages as ofJuly 21,2010, in the amount of$3,252,109.77, plus all charges,
reasonable attorney's fees, the costs ofthis cause, and interest that continues to accrue.
44.
Interest continues to accrue on Borrower's outstanding balance owed to CDF on a daily
basis.
THIRD CLAIM FOR RELIEF AGAINST GUARANTORS
(Action on Guarantees)
45.
CDF re-alleges and incorporates herein by reference Paragraphs 1 through 31 as if set
forth fully herein.
46.
The Guarantees unconditionally obligate Guarantors to make payment and performance
of Borrower's obligations to CDF under the Security Agreement. The Guarantees are continuing
guarantees under which Guarantors guaranteed the payment of Borrower's obligations.
47.
As an unconditional guarantor of the payment and performance of Borrower, Guarantors
are liable to CDF for each and every failure of Borrower to perform the obligations owed to
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CDF. Borrower has failed to perfonn by not making payments as required under the Security
Agreement and allowing units of Collateral to be sold without remitting payments to CDF.
48.
CDF has perfonned all conditions precedent, if any, requiring Guarantors to honor the
Guarantees. However, Guarantors have failed to satisfy the obligations under the Guarantees.
49.
As a direct and proximate cause ofthe foregoing breaches by Guarantors, CDF has
suffered damages as ofJuly 21,2010, in the amount of$3,252,109.77, plus all charges,
reasonable attorney's fees, the costs of this cause, and interest that continues to accrue.
RELIEF SOUGHT
WHEREFORE, plaintiff GE Commercial Distribution Finance Corporation demands
judgment as against Borrower and Guarantors, such that:
A. CDF be awarded possession of any and all Collateral for which CDF has a
perfected security interest and which is in the possession, custody or control of Borrower and/or
Guarantors;
B. CDF be awarded compensatory damages, plus interest, from Borrower and
Guarantors, jointly and severally;
C. CDF be awarded its reasonable costs and attorney's fees incurred in prosecuting
this action; and
IIIII
IIIII
IIIII
IIIII
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D. This Court allow any and all such other relief as it deems just and proper.
DATED: July 21, 2010
00290025.DOC;1
HARRANG LONG GARY RUDNICK P.C.

Craig J. apo, sq., SB #981928
craig.j [email protected]
C. Robert Steringer, Esq., OSB #983514
[email protected]
360 E. 10th Avenue, Suite 300
Eugene, OR 97401-3273
(541) 485-0220
Facsimile: (541) 686-6564
Attorneys for Plaintiff GE COMMERCIAL
DISTRIBUTION FINANCE CORPORATION
Page 12 - COMPLAINT FOR CLAIM AND DELIVERY, BREACH OF
SECURITY AGREEMENT AND ACTION ON GUARANTIES
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 12 of 35 Page ID#: 12
"
Exhibit 1
INVENTORY SECURITY AGREEMENT
lHIS INVENTORY SECURITY AGREEMEIlT (Ii (rom lime 10 Vme amended, 'Ihb lIlA' and Iogeiler Wilh PlDllrBln I.el\e/S InII any TlanlRCilon Sillomonb, Ie htrolnalltr
denned, 'Ihl Agroomnt') II btlWea. Cy,le Spon. .1 S.I,", Inc. R Oll;on "rp"aU,. and TRANSAMERIOA COMMEROIAL FINANOE OO/U'ORATION rrCFC'). wRh
011101 6XewU,O.HIc:o Bhd or bulln ... allaOHrlllum BouleVDN, Hinman e.!Iltl, IOIn,I.60192.
Tho p,MiGo ag .. e ISA eme.ds and "'lales IS .. .ny tl<IIVnq SGClln'ly A9"elMRl b61w .. n!he ",111 .. daied prIorio Iho dar. h8fBoI. Tilt .. ruMor
flllro.BI/OII<iW':
1. b,nnUloD •• In addillon bll,rms da/inBd ... Iltro herein, "ms,"'n,,' 'ohatl4l p.per,· 'dlPo," lOCounl,' 'documlnt: 'equlpmlnl,' 'fixl,,",. 'ganlr.1
Inl,nulbl .. ,' 'good.,' 'Inlirullllnl,' and 'lnvontory' hAve !he ..... Ing. aMinof '" 1110lIl In Mcle 9. and 'pe""" hal !he .. ... 10 II In ArIIoIe 1, olrholliMll UNI","
CornmttclilOode (rh. 'UCO') os 01 dote 01 ISA. 'Prog',m lon.r moan •• pm wr111eJ1'QIf,rn,nl,nVVod 'Progrom hom tin. 10 lima omondld, bGfOIaen TCFC and
IleaIBfWllIch ",I,,, 10 ISA; 'Adv.n .. ' mlln! en of «edilheround.r, 'Pd"" IJIvonl'lr1 mIol .. /",.nlorywhlch has b"n In WhOle or by an AdVlncq, v.1r,lIrar
0/ not lUdI AdVance b 'T"n."lIon a14tamqnf m_ ,./aliment WIlJdr ,I TeF!;! mil bG lItu.d by TCFt; 10 Otaifr 110m Vmo 10 Vme v.1rtdl kf.nll/leslhe Primo
1IoIIn«d ondlorlho AdVance m.d. and rh.I,nnsaOd 1XIfl1fi1lo0i 01 mpeymooll1ioroJor, Ind offill.1a mm • • oy oIIal (Q COIIVOIIad by
Undar common oonrrol willi Doorer, Iftl or .. 1Iy own. 6% or """" 01 Dellor, (IR) b. drr.,br, ptJlOOr. rnonagor, or ohlcor or D .. r" " en lfIIIe" of Daaifr, 01 flYl any n,tu"l
Plrson relOtod 10 DIIIII oran afillirite
2. Advaneu ;nd . .
(.) O .. lermilY /rom Um.l. limo 10 TOFO, orin \h, mannar trr porogmph 4eOllon, Joran AdVance und.rlha/lore,"",,1.
'(b) Wh,o,varsny pelSon whom Dealtr pUlCl1 .... or may OIw1tO adVl!es TOFC !heUI has &)kf, or may .aII, InYonlOJ)l1o DtaI.r(R'SeKofl lOquiilS
In any manner (a,"., O/lIy, In willing, or by IlanwJbllon)1ha1 TCFC Gn."", or COlIOrm IhII n II1U lIl1ance (an 'Approval'), Ilia .1 by D .. I" lrom au'" Seller.
euoh requHlon,1I b6 an appll .. U", by Dealer Gq\lil to 1M pulCl1li8 PIlle 01 autllll\VHlID!Y, D,eJereilaWba obl.\Jaltd for all .. by TCFC on ,,,,,unl 011111
I."."", oI.,c/I WhGnGl'Of TCFC an Adv.noe, K may bG paid by III !uell AXoept Iliat TCFC may 0"'81 lOy amount ow.d by.uch ScIIor 10 TOfO,
Including rw.1Ion Iny pay.,.,,1 oroUr,r ben.m ifill<! by such Salorto TCFC rTCFC'1 01111110 Dealer oqroillhalll haa no riQhllO any TCFC',
(e) TOPO Ihall nat be 10 bsua any Apfwv,l or mal<. ",y AdVanco. II TCFO dl<ld;. In II> 18, .. an ApproVal or maKe In AdWnca, tile Approval or
AdvQnOl may be In rh. tmorrnl .. qVlSlod or e ra.w amounL and m.d. upon Iud! condlUonlr II TeFe d4(ern1II1U. Each Advance "hag 01 doomed mada v.1ron 1110 .nt.rod hy TCFO M a
_N,W. on boo"" AU A<ivonceo 10( an pulP .... slllli be «oated II loan.
(II) Any In""" I,rm .naU Mcluda PIP" baaed or,lfcWnloolly InuJinjftod lrom. Slliet by TCFC, Ii\vonlDl)' .hlpped or 10 b, ,hlppod
I. oo,lfr, 111111 bt tGbUltaW pfNumplivo ovid""" Ih,1 TOFC h .. lin .. "" Iheacqultllloo .. I" and Ihallh, ,,...nl., IlIdllnvoioo b Ilia 0iIy1n.1 prlnop.l.mounl.I
Doal.l, oblll'lIon I. TOPO on orauch
S. Cqv.nlnl!i "" OU'.r.
(I) Unbl .. Id 81 pormlH.d hy !he A9rellMR\ o..rer IhlU own 'If PdMe irte end c!IIr 01 0/1 K.M, ..... rlly tlebus 'nd oilier .ncuroOmnul, wlHilliar
.rIIlng by or op.RIlIo. ,lIaw tllon", oIlierViIn rh. InlGRlIl granted 10 TOFO Vlb 1SA, Inle .... IU\1oNIOAIa lIIerolo to v.1r1ch TCFC hos _ .. rod In
wrItJg 811<1 Olhlr lJanaln IavototTCFO.
(b) D.llar 'hll (ij iwop.1 CoiIa,,",11i Pdnnil!ed kIIIIp ,U ColiAllIif In good "'W, .nd IjIIfIllng cundlllOO 'nd Insurod •• fGquJrG\l h"ehr. PI)
prompiy /do ,II II, .. 111m. reqUiod bylaw and prOlilplly p,y.n IIJI .. , r, .. , AI\d .lhorgov.mmen(el chorg .. f,,""1ch ft fa lloblo, rnorud ngwilhoUllnliioltion I9I\!s1
rho CoioMiOl; UO wlihoul nOlJ/a, 10 I1Ipt01lh, COIIa1eml during norm,1 blJl/nl)lS houll'nd II My oIherfme TQFO del"" .. (Iv) loop aeturola "0014&
01 bUll .. ", ileA/ding In"nlory .nd ,1If., and permft TCYO 10 1JIapec:! ded Olpy BUm -. upon fGqueoU (v) upoe TOFC'. JIlqUJl3\ TCFO wfth D.lIoli yoar-tnd bolonco
.helland onnuel proDI and 10M tor eld! 01 hi lllcel Y"" propoNd In "",rdlnee wllh ... nay aa:or>IBI10«0unUng PMcIp!'" wllhln 20 ,n" rhe
"m.1re propared bU11n n •• vonllGW lliIO 120 dayalHerlhe II!d 01 oath lilcal year: (vi) IUmlsh TCFC wfth.1Idl Gddlllllrl,llnloimatlJl IOIjlrdlOO lira coitareralln.r IlGo/Gf. buIIl.eas Ind
nn,nettl oondlU,n .. iCFQ may from Ill\.", lime reqlJMl; JIld (YII) TCFO 01 lOy mal.rr.r adv.ilII alll>,lern Do""'. buoine.. .p'''ion. '"
oondillon '" orin !he COI,""'I. '
(e) O .. lor 'han n011D uso ("copl lor for ... 1m,. Nfl, Iranofor, IXIJlIIgn or d!lPO" ,/ C,lalml""'pt for ,ar .. 01 '1 "lalln 111. olfljlnalY
.. 01 bu_.; (n) .. h'lnvonlOJ)llo .n (JY) lOO'la anl.l11 ... malirlillMn .. oUon I10t In Ih. onlhal)' CUWJe 01 D .. II(, bull .... : (I,) ctrangolll bUl.\1eos III aJi)'
mal,rlel mennoror", alruduro 0/ boa parf1111 a mefllll oroonlOlklallllrl, (vI drlng. lit n,meoroonductbulllllS orlJl<ll name oIhtrllran IhOIe Isled Ihesectbn
,nUled 'SUlIne.. and W,rehoUl,lD",lIona and Trade SIji .. ' Wilhoulall .. ,,30 day. PJ10rMilln noIJeolD TCFC: oIIeng. Ira mlel ",1I/IIvo .lIIcurofflce IIiJirt H koopo",_
Wi1I1lO1POClIO aCtounll "oII,1Ie! paPlfl or (,D) !nance on ... CUred any INIli P'i!yW!lhoulllr. prforlifnllen ..... nloITCFO 11>. aoqufollloo S1me brand ..
lAy rnYinlOlj' IIrIanced orl. bt IJi'ianGld by TOFC. .
T-3. (12180)
HOH
10/4
Exhibit 1
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 13 of 35 Page ID#: 13
&. hVnRlbyDHfirleTtfC.
(.) DcllorlllllpayTCFC IhlllNlM1Iof lilY AlMnoe """. tof1lll1Clitll :ocquIoiion 01,., upon I/I, .. .llUdllllm. and
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""'. and prop."', r.llhe 'Ou.ln Fun DlIl'wllt INJ*lfo wchAtlYalKll, bo210da,..karlUdlAl!veIIcewtl malle.rim provijed f .... 01 (HI)
Iha d.le ,,"" item hat betn damlQ811 Dldol"",. 01 wilhool TCfC'l_ b rohIned 10 a Stu,r 01 OI!e!WlSt not lIa Pllllrillld l""'lIon. A., """ "",lIIIola.",bo .",Ied
ArI AdY_ madIIOIil"'''' \lie Icqu,'iIiln oil n"",bo, ... 01 .fIoQ """'U sudl rttms I. proporUOn 10 Seller's rtljlfW<f invoice
otaltr. .
• i\lioio or In port .,_ .. any IvcI1 '1
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tONlII
U1CFC
'h" ,1Ict III' he IDOl pel1o<l, ", .. ,1.11211 porlO tIIy mooill;
(0) All p,,,,,,nll,hoII bo ""do ,I ."'" p/aoo .. TefC 'hili '"'" Umo 10 lime IfIoIgnlll. I.d unlIM .iIltnIlH provldocl n A9rttmonl 01 J DtoIar In an
'nd .!he< ",TeFC .. m'nl hWdIng w",",1It /mIIIVonl"",""", p .... ld. "'" """" ... 0I801or I/I,U ba oppltd 10
wllllh.,ornol dUO, In """ 0l1I0,,, TCFC II dilUtllln ,,,,U All PI)'II1lnb 10 bo "'" an. dWi wNth" not. ... Day ,hallb. we onlht p/oeodln, Day.
(hi S.b/eo! k1fl. _ •• 'S1ViI1I' Provio.'o/ll', Iny lI/.\tIIMI1twill Itljlfcl ill.., .. nll> onyT,anpofon
SI,lom'"" 'hal b8 .. blo<1 co lUb .. "uanl ..",lman! '" TCFC "".hd b. _mod ."",." 01 alld Inlorm,1IM ".. .... OIoreb', ur/IH lCFC .holhllt_od
"",on noli<o In>m Do.lor ,ny 'IIWMlfth 3IJ doys.lII, lilt d'II.'""" __ No .. "'1\tI1diI9 ",cit no1lct by DtaIH 10 TCFe, Do ... obl\illil. 10 mel. po,menb to
TCFC 1MiII .. ,peGl 10 011011 ._1 ""'" no! b. '".14<1<1''' tn. unII TCFC ...... b In WIllIG 10 IIIth wall""
AlIA" .. "a I\Olm"alo ".nco Iht orrlWlll1Ory II>Ilbtpolclon d.mond unIr:oI_1 \¥DVijod d10
7. twIWISl. All tiOl 011>00, domau« to Of daslnr<'/On of _ ""'hi alimeo be on Deetor. iloilo< Jhd t.oep CoHoltIoI fill ..... for lui "M 'llaMa' ""","bIo
risI. IHldal dollverod 10 TCFC .IId 110,111 by lailSlKlllI ill TCFC.lIo ... poYlblo 10 TCfC alld al lCfCi "'Iutli untlif long./onn -"11'111_"""" n III
1nIM .. , tno'f ._r 1U\liIOl to Qlnr:ololion .. rfllI1fIl 0Iiy ... 30 ""II (10 day! for IIOIIfI,.,onl" prsnIIIn) __ nolioo to TCFC, TeFC IUtllOl!Ie<I, but i'oG! reql/red,lo '" ..
lltlmoy.n.llo1 ror Doa'" IdJ .. 1ng on. on, .. __ undoI '"'Y """ tIOIIot II1II In ony _ ... _....., by ils\rllil. DtoIor .hal "",,,po, ,onIlloICFC
lorm _d, WIth II "'''''''' ,I p, ... or. ,,""" ..... ""'" wNeII Otelefma, _ We, 01 ill aMI "1hI,.ppIy lIIyprooeecll of I \IllY
•• rd paymo.1oIlnd.bcId,.. .. "pay llIOft proceld' to Dos"'. WDtalotflllo10 obfm lucII InI, ... " .. , ,"",lArd heroin, TeFC 1III'i, bul.haft,,1 be 10, pr,,,,,",d!
"'u ..... IIId the "'IIhIrIDI "'''' be aplllol the Ind,blelln ... payllblrl III Dc"'r on d''''1IIId,
. ThI,
t. C"dJ! Inform"'." TCFO I. "'l'Ilf9l11 Dr 11181!. nqulIlaa., """" or ,.lIIlnl <iIdIIorI 01_ penon, and plIMda '" any EIIdiMI orofller """". any
fIIId 111_\ ctedft or O\htr inforrnalOn 01 otlflr, ol>o'Il8<1Upp/fe<l '" 10 TCFe .. o"."Wo TCFe, wNt SlldllUtIIolIIy to conl/nuO
tho trmnol ... AII ...... nl.
T-le( • .2Ite)
.... ,
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Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 14 of 35 Page ID#: 14
!IO ""YI PIIor 10 '18114 or malvrilv: (e) or Illy GuI ... b •• hli mila an ... for be,eIri.f OI .. m_ a proceeding wI/! 18lpe!\ 10 iflel
und,,,,y Irrrnlruf"" "'rganlzallon, arrangemenl, inlIIVGIlCY, lectlMhlp, dlllolrlJon or IiqIldaUon .inila.Iow.I on, ,""'didI.n,.r ao, IUIII bt oommtn<td
19IMII" 01 '" 0 Iw (111\ ·A ...... ,1t D.'aulrt. (1). maUdal.lfv ... <fIIng .. h.i oa:u. ..... jMIiDns or DDfldiion (n'lIioial o. 'TIl
orwllh , •• pe«10 VlICoRiltra! Ig) ,nydtbt/orbomwllt moneyol, org",,"'d by, or "'I QUlIIIIIM _ dUitry 01 oIhwfle prlorlo bdue d,lol'/"'''' ola
(h) TerC k1 Door! f.r/lh 1re ..... lhoglO.lpatl Of paymrrnrOf lIlY b ImpaRd DIdo"", ... a" ..
11. TOFe', Blgbl! I.d BM)" Upon Dtl!un, iJPI'! Ira """'nor.'" 01, DrQH, TCFO IfIali hOi. "'I\t.b a,d re ... dloS Of • ..00,<4 par!/ .I\rIoI \110 vee oftOl
awli>rNrt low and dallh. righb Ind ",1IItd1N aot forIr In Ir. Ag ....... '1 TCPO "'loY te ... haIO Ira Agroomonl and on, .. a,<I'o, dKlalt an, 1M Ii
Ind fltIIwwIH .. "" .. of InIInl to __ • and.1 """"_ of IroMbred_ TefC ... , "'''' .. , rwemlstJof
Delle" wlh O/wilhoul p!OC'" oflow, WiIIDUt 1 .. 01.1 .... "" 10., ""'.po .... ''''''.I,.nd ... "",!he Coliallfal,'" '"' pad 1h1lfOf. W leFC ",*", """_."",,iIIon 01 "'"
,1>0, Ilro CoI"" •• 1 ,nd ... "" I .. III rCFe, .,0001,/. llpo ... , all ,.'",,,"'nlploo6 or"""l delllnaiedb, TOFC. TOFO may pomwJon of \II CoIII ... I .. '""
pan Ihlrooron Otaler'a premile.s.nd ..... II " ..... In ..... aIOt • .." 0IjI0IIl •• per'rIIlrIg .. .. DIII,ng' ... th.1 "'" OJlooflnl'lnI<iIY bVTOFC". po ....
1abIo!g TOFC oodll ,gu., .. 19" .... nl orlllallr.IMUnol d_d lObe. ",,,'orwbjaolto SOdJon g·10416).,Ih. uec or.",.mAr Dr any
0\11. IwlicaNrt I,w, ,nd 0"10 ......... an, pnril .... 01 ouch I,., 10 Ooolrt IIW'III !h4I"p'UI .1 bya Stlt. purwo,l to. .. _menillih leFe
.hlg be. ... _bIe ..... od of 10 TOFe 10' 'ny dertc»1IC1 ,.,.\11, from -1niJ IOIIhDrrllnrilrltion ... "',. .. ,. try.
s.ltr, ""or"'" of .ny .kpoIWOrl_I; D .. knot •. or,.nd bN nOlfShi to ttqul .. TCFC '" onr""", any ,0P'''''''' '9, .. "",,1. A,y noit. of.
"". be d .. mod "",,,,ably and proporly gl>1n a olm! 10 Dellor "!Hal 10 11m bofort IU'" dbpo,""". "1IN1or 1010,. """rm illY" b obIiI,UO ... ulOlM Ih. Ar/ ...... nt, TeFe "I
U'I "". "" fo.m or ma .. " Tope n II "'" ........ ury or d"hsblll.llld ,N morioo pold try TOFC lJ con_n !herowl/! "'" be rrddilloNl'nddrlodrl ... l1l<I
,ha' be <ira and payablt WiIhOUI nodce tog<rlher.!II .. d payol>!o Dn rIolM,d al!hl DofauJI RDI, AlI.1 fefG', a,d rernt« .. w' Al fePC's
"qu .. \ ,,"w!Oroulllquulln!h4 mnl of on Awom.1io Dof,uP, .. poy IU Selio. C.dlb 10 TeFO a, .oon a,!ho limo IIl1I .. 001< .. for 10 Irrdlbl!d ..... ,,",lit
.. .. Tefe 10 .. ,.d ,"'" .... ,.,b dirodfl kom Sellora .n4 up.n r8Que>loITCfC, 'holNlnr1ll So,,,. I. pa, TCFC dllt1ly.
12, elm A.aIM' MI!, rhln .... any iIrIrm 01 d.IIO .. ONIor 1liiY haVI any 8111, brUt!! .f WI .. nI{,
1IorI, 101 ... " oIjp. of oulhorli!', 01 otherlol .. , witroullinllallon dol"" .. delen," baltd ijPO, tlrlrge bft"", ""'" ........ , IIbolol, "",locIIon
or 181 ...... A"/ oudI d,""'" dol."""., oIiJ" "" ... ord.r ..... Doa/or haw .,'1' SOUar"''' no! "'oct 1lIIIIt'.l'biI'loIor 01>1\1"'"'' TCFC. &orp! .. "",!dod" Jht
JetIIOn Inllod 'Saving. P ..... 'Il<olel, oblgallon to pal TefC for AllYrrn ... llld CIroJU .. balrsllM. a,dunco""""""I.
13. AI be undor lho Au ... m,nl •••• be In WIll"" Ind lhol be liN'" ."'or PlI1OII4IIj, b, With a reputable t!!arge$
,,",plld, .,by do"",11 In the Unite<! ... ""lag' prepaij OIp,_ror, .dd .... 'd to o .. aliia C!Hf """live olllet ba!OW 0110 anyolfiorJ to lIIrk:fr TCFC lind.
'11I0I1l"., OlIO lOFC "hI"drII, sI10rm In !ht h ... ro. .!lon!lon C,."I D'pa .... '\ 01 "IUd! oIIlt 111_ dlSlgnaltd, by ,,,,,, b, IIOlct to oIhlf, 110,
lI0\II1, Incllrdlrg but nol IlTlte<I 10 ''1 rrvnllctlon 'hil be delmod 10 Irm betl\ upon d.111'/ "!he _ or pallOl1ll deto'tty, one B,_neU !lay .111. 'lpos1 will"
I'trnlr>\lOOIIrtor 0' 2 ealanderd,y. alii. de"",1I1n JIre Un"'" noj" Of tlrang." .d,I'." ,''''1Il0l be IIitCIN. .elurrly .... Ivtd.
14, !'Ira Ind Tvrnkyllgn. Unlo>s ...,ner !l!mrirelod II provijO<l II Iho AIIAI"",nI Dl bV .1 ""I 30 day. prirr *rIIIe. not;,. hom .l!Irli p.rty 10 "'" 0Iht., Iho IIIrm DI Jht
.0,..lII4nll'IIU 101011t ylll lIM/ilia d.1t ISA lAd from '."iDyall ...... III" prowllld, 'OWI,or, TCfC l1li, !ennk>11o!h. AlI ... "",,1 <rvne<1ItteIt try nO!lcalo
or ... CtfIII, produeIlnil II c.ar .. 1hB81011 to .. l .. de.lln "" pro<ird Ina 0' PrImo InverrI>ry" V pa,.n Ad ...... rile to In
objacrlr>n '0 ... .1 anI TII!1 .. a"" TCpe d."""irrtI "'011/11 T,...,I'I'" SIiI"" .. 1 dots 1104 _ • _lrIo Irror. Upon """OJ"'" 01 lit A9,..,....r.r, .1
Iorio_, lor, Iho Asreemenllo ienOOillild I>...rat. """'11<1 .... , ... lo."'" pnld.a in,,) .hol b ...... I .... du •• nd ,,"y.bIII
noli<1l o. rIolllMd, Upon al1/ Ierm"lIon, otrrrd 'em,l. hAIl "bOo !g TCfO for allnrltl>l,dll4lO. IndudIIg Witroul CNtgtI, triIIng prior to or .11" •• alld .1
TCFC"l'QhlS and .. modi!! and is Ind.hI"' .... b po"'arrd "" 'bI\I-01 DoaI" II. podormld In I.t II TCFC makos Adv ..... 1n .. on.
IIpulCtr ... _manllrom I 5 • .." II mar "'". mal<lng """ AdVI""'" Wi hal I", """"'" II to wh."",. ,ud! ropu.w .. '9IUOfIIIInlv.lll r,,,,,, Alii ...... or b. porformod by ""h
60li0,. No proyilfrwr .U""AlIM'",,,,1 ofraIl bo _Irvrrdto TOFO IomaJrtllll rIdVIIncu
15.
objattkrn
II.
0'P08ED
AND THE
II ALL RESPEOT8 IN ACCORDANCE WrrH, AHD GOVERNED BY THa INTERNAL LAWS IAI
;;.j,iRIFEciltO"1i THE STAT! OF ILLINOIS, lXCiPT THAT QUESTIONS AS TO PEllfECTION 01' SECURIIY IjlEREIT
y. IHALL IE GOVERNED 'Y THI! LAW WHICH WOULD Iii APPLIOAB!.E w:EPT FOR THUECTIO.N.
17, JUN WlI"', TO THE J;l(IENT PERfrIIlTED BY API'lfOAIlE LAW, THe PARTIES HERETO £\CH WAIVE ANV RIGHT TO A TRIAL BV JURY ON ANV
CLAIM, OEIMIfD. ACTIOH, CAUSE OFAOTION ORCOUN1ERelAlM'AR!S!IiO UNDiR DR IH NlY WAY R!UT!Il TO NlD UNDER NlY THEORY
OF lAW OR EaUnY,WMETMia NOWiJIJlTINO OR IlliRlAfTERARISIIO.
. "
fl. m .... III.O! Proyhfpn •• & .. pl .. provrrt,d In Iho HcIi>n enlile<f 'S.YIng:r PlDllsb .. •• II iIIIr ""nl of 1ft btlWtfn ISA And In, P'OIIltm Lolli., ,",II
Pnrgllm Lolli' "'" c..,ror. All PrOillOlD lrI .... ,lid "'iii be """"1s(Ive. In Iho evt" 0I .. .. ., bIIoeen hi. L.I .... Jht 10111 dolad 0I!h4 t.o
tIIIB conVoL In Iho .. ",I .r on .00000001 .. "y bllw"n , PI0911n1 Lilli. ",d. T"""cIi>n 51a1,moDl TII!ISI$n 11118 100000001helo"'" and co.diIIon •• r IhlllillOd
Adv.nQl.
lW. "ylnal POOl,",. AI! _n TCfC .. d 1lIIiII. wh •• now orhe""f\or mil/oiI.llllCiwllllllfWri!Ion o. oraJ, ... iIIrWI_ by ihI,seot",. In no
conl"tlellCy, wh6llror try ...... 01 """_ 01 ",1III1\Ht!Y .r!he """'iI duo horaunrlo. .h.y ChIIlIlI fa., 111l1li"', _, pold 0119"-.1 10 lit 10
TCFC..,..., iIIf millrrlum a<nOIMlI po!IIlImillo"""" IIw. rl IIomIlllI oiw __ , Cl1I!geS _oIh.",,,. lit tJOIaI>Io IIITCfC "_ .rillf rnPI_!tHoiw
I.,..,n!, !hi C/Ia"lta IhIJ be red.""",, rrIIJtmt/m IrrIOIMI .ncIor IWliorbiliIIW; Ind, d!CUIMranea, TCFC IMQ IIIYo .... ,,'" llIjiIWlg .f.,101 dlllllld
try IfIjl!Icabllllllll II .,_ DIllie nwimlmllnf<o1.moun\ .lIIamOUlll II "" ..... of _ ,.01 lit ",pied II WIt _ Of !he !IIiflIjpollmounlol _edl1OlO .. d nollo !lit
p'I""",'ofCbI"" ... or K ",oIIIXea"'" __ ...orr,!he U/IjlIJd_ orr.. pMGlpallIIlOUnt of _ow. ''''''_IIWI bo tWr1dIdro flroofer. AI Ch-U" poid oreg"'"
10 be PI!d II rcFO. "'hl....., bllflf*iIiIo II1II, H be IIMItlr.od, """",,, IIOoaIId ""...., iI>r!IUQI1oUIrIII M .... of.". AQlltlllinl (IIIC\!fVog I", hi '001 poI!odo)
undl ",,,,,,,,lin of _I prlnclj!ll ooIrrg try """" .. !hI! rill Chilli" fa< ouch ftJl finn Wi IIOl IXc.t4 I,,,r_um _mOlln! porm/IIId b, applcobi. Jaw.
:la, LIm .. Uon or B'mod" IIId OwHl, TCFC ond Oml ",'11 111M "!he .",1.,.,. M, II/ojIUIo roiaUr\J co 0' a<ts\Ig .. nn. I01fh III Ag' ..... '99"'''''
DillY IMllIOIbo ...... damaglll, connodlon..wr •• y.- "In .. """d to "'0 AI, .. monl
.or.

Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 15 of 35 Page ID#: 15
"
21. MIIC!I!II.p.DUI.
(.1 n ... ;,.lIlIu_. tho por, .......... , 0111 ... "1111.11.,,, iIldW Ih. AD/I_I. Ally w>lvlr by leFt ., • JiI,n only II offcttlv.11 In. W!iIiJu Ii;JIIIJ by TefC Ind "1
waiver .10 Oof,u/i In I p"U"'" ".I.)llltlobI O".LIIIhII I14t bo. wllm., .Ihl' 0111111. or.f tho II1I1I klod., O,'ouIl'11I10th" tlnrl. mo&Iic.I'" .llh, shill
me wllUn, by TCFC.
Tho All'''''' >hili hr. " lire btneffl 01 TOle IOd h ...... ,'" and.1IlQna Ind l1li'/ b ... 1IgrJtd by TCFO It wIloio "II prrt. R'I., ..... 10 TCFe 111,1 bo dKlllOl" "'it to
me.1Id I" "" ... ". and ... Iglll. 0111" .. ynOilloipllll,AlIIllII1OIIwithoit tho prIo< wrltl"''''''''I.1 tefC. ThoAD/ ..... 1 ,h,lb. tho """"","" .... lhw'_11I'a lift ••
IIjCGr,)3ort and 1IIl!l(l!.
{.I nt.Iw ,h" ply 10 YcFe ''1 d"" .. d .. , ... ",""", Ift.",.y.' tN' ,l1li {'8'I "JlllllII ... oth .. "'". "'" .. "",'" by TCfO """,lion With "'«""'III.
ot, prol .. 1IJv and hi II., h Ih. .nd oolflotlnS Indll .. om .... "II ""' ..... wllh .. II''I 0' Ih. AIt> .... JIIY Dlr'''t "II ,,,,,,,II,,, wllh Ill'(
1011011 "p' .. IIlfl1wplCY Mil""",,! iIwI.
Ally AIII_' I .......... jJdId.1 i1111J11t1l110ll " .... ""'t\tn IU III prolllil'odby low "'all III th. "tm, or .lIlh Ih.
1 ... """f. ' '
{ol M WOld. 'lid .h.11It ,,"dll.I"".'" 'OIIIIIU.d I. '" of such nun/>c< ond good" "Ih. elre'lIIJla", .. ""y leqQr" H .. •• II for 1""''' p..,..... 'n; IhiD nat datumll,
lhomallllng or or th, Al"_I.
U. 'y.{nn .. ,; W",h,U!,196IU," "UIII. Sty/'I' whath."""", (01 "'HIM {LI.:
!db.!
5102 'artl.nd R,lI NE
SISRI,ltR"d
4JB4 P"Uond HI

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.wL Tnllo Sty/oneill'
DR enos
o eyll""rl .. ".,"", '00.
OR 17404
o Old. Sp'''''''I'''
OR 17105 D W.r,htuH
23. 1",oU"n .... Tht. {SA""" not bjo,,,,,, contraollmlD .. ""lid bv TCfC 111_. AoGIjlIIllt. mav h by ,,,,ill,. o'iQ,Iw,. a"''' 1Wi .. rol'" ol .. ,opl.Ol\ ••
24. AND TIll OTHfR WRmIO! ItIllIIRiD TO HERIIN MEPRlalllT THE nNAL AIRIEMiNT BOWliN THE PARn!!.
IMIUDY :":ii'Nor'ii"cai;;:';'IDiliiiED HUnO AND sumllOi AU PRIOR AGREEMENTS AND UNDIUnNDINes REIA'IlNQ TO TIlE YRANIAITIIONS
In. IY EVIDINCI DI PRIOR. CONl!IIPOhAlEOUS OR SU8SIOUiNf ORAL AGRiiMINT, Ot lHE PAnm$. tUIRI ARE NO
UIIW,UTTEM ORAL AGAilMEII11 affWiEil TIlE PARnEll. Unl",,,pfI.sIy pro,;;od In ,h •• gll .... till .. 1I\JII1 dOH .ot ,"mln!!, •• y.tIt" ... "It, '\IJ1 ... nt botw ... ltfC
lad If.llir.
Dmdl DtOlfllbll II, 2000 ,
DfALIR
CycI. $portS 0'
Davldi. Colla. ...""O.otvl::.j"'I."'co,,":::'"'-____________ _
{s .. 11
PrlntH_ t4 W,,"o CAMILL.O
.. "ltdln IIII"{,,
11tIr. Pr"IIMn'
r .. 10 ... 8.S. 116., 93-(;)%309,
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DnIor', eN.I ElIoutiY. Olfl" .nd Principii PI", 01 a' ....
5)03 l? .. '\)[J
II b .p,nnnlhlp or irrllld GMlrdP'nnlll·"Mlrnbu.'nomu.h ... .."".".II.d r .. lo ,,$.8.11",
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 16 of 35 Page ID#: 16
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EXHIBIT 2
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OR HIREAI':rBR. IXISTlHQ,. 'a-zHRD, LICKNSiD. LKMHD,
'OR Al\J:s:ntG AAD. WHRov,R t,.Ol:A'rM,
LOO.ATlCII lUJ, PlNmCED BY
PAATY /11«1 j'.LL .H.B.BO',
tn:ANOARD FORM· FORM liCe-I.
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Exhibit 2
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 17 of 35 Page ID#: 17
Subml\ this fo'lll ond fa.
$10.00 JMt rona. IIICOIII TtrmlnlUon
STATE OF OREGON
Col]>OrabQn O .. UCC
Pubho SeNJce Bultdlng
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salam OR 9731G-t327
(50311186-2100 FIIC$U\\IIQ (503) 373-1166
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WRITE Y READ INSTRUCTIONS E FILLING OUT FORM
No • '!J!\''il7
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Secured Party releuU 1110 fOlloWing {descnl>.,n SECTION a I
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F $IGNATURE6 In "Illh ORS SIaM •• ALL mu.' .Iun o')£c 3i'if.ip
By \SLl. m.lliill:3----- By - - -
By ey ____ __
___ Signature Deblor feqUUed}---
R"MIN o;opVTO {rOInO oo:r_l -"'''''1)I>l "',,"""'" Oftmd<elol<lao ... OR fAX c;opyTO r""",,,,, Iax_ 0
• TRANSAMERICA COMMHRCIAL l Ns",.
CORPOAATION - MARINE CREDIT -USA RAMIREZ
SS9S TRIWUM BLVD Fa. Numbor _________ __
HOffMAN ESTATES IL8D 192
,,(' r. .... ,<;,\ _:
I I' I f r-'f EFc
01
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 18 of 35 Page ID#: 18
.'
UCC-3
ST!. Te 01' OREGON
CotpUraUcn OlYlalon - UCC
266 CaP/lol SlIeol NE,
Salom, OR 07310·1321
(803) (503) 373·1166
250690
08/04/19§9 3:18P:vJ
OR of
STATEMENT OF TERMINATION, CONTINUAtiON, ASSIGNMENT, RELEASE, AMENDMENT
PLIiASIi TYPE OR PAINT LEGIBLY. RcAD INSTRUCTIONgeEFORF. FILLING OUT fOPlM,
IfMn,l", alii_II, PfO'''''" 10 "'log om", P." ....... II. Ih. Uoll .... Q""III"'11i TIll. _Mlldlllf 11._1 ..... ""_ for I ..... " ,I 1M
yU" frOft! Ihe .... ell' fl"", unl ... IrttrtMd for .ddllJoMI ,."04', .. pr.Y14t4 '«by ORi Chlpkln. /It ""'It, ., tat., "IPttd,II:rUan Qflhhl
fOlTlLllf\lMlng IlI1tftN"" ., IHutItp' Af'H"MIII mil" ,!Illd It. flMnClnlllllltmtnl wnw ORII Chaplet Tt. . _ . _____ . ___
A, THIS 8TATEMENTRI!FBRS TO ORIGINAL FINANCING STATEMENT 10• AMBNDMENT INFORMATION
.. -:.= ... Ulllllhi. area 10 11.10011110'0110 ho
- - -- _ Amendlllf/nl
II, TYPE OF AMENDMENT
::I TERMINATION (NO FEE), The Secured cerllnaa Ihat Ihuy no longer claim
Ihlo,.01 undor tho lIn.nclng '1IIem,n! b'Plrng Iht (,1. numbor ahOwn 111 SECTION A.
CONnttUATION, SIIbmIIt,d within ,Ix m.nlh. prior 1 .... pl'IU.n dill,
:J ASSIGNMENT, The Secured Porty IIIIgn, 10 Ihe AulglIOO 1'01\048 MillO aM
oddl8 •• I. shown In SeCTION E and bOIling Ihd 01. numlla' .huwn In SECTION A.
Choull on.: Crull ,""gnmenl :J r.l1ial ..... lgllm.nl
:.::) RELIASE. RELBASS DOEI NOT TIIRMINATII DeBT From Ih. eoIIaler.1
doaalbGd In Iho ftnancll1g 11.lomenl be.nng Ihe nl, numbo, shOwn In SeCTION A, I
Ih. S.cur..t p,l1y "Io .. nlhe fOllOwing, (de.eribe in SECTION ell
Choo .. ana: ::J R.I .... 01 II Collaloral 0 Palliol R.,oa,.
o AMnNDMIiNT, "alemenl bearing nl. number In SeCTION A I.
amondod a. dGlcrtbed In SECTION G, Slgn.lure.r D.bl., required In mOil
oa" •.
--..:.:::=----------- .. -... ...- ---
C, DBBTOR NAME(S)
1. "Y:-'L; j'jfOH n, ;'1, E:J.1
2, _______ _
3, ____________________ • _____________________ __
DEeTOR MAILING AOOIII:59: ;.- M ;- : 'i r, \' :ll :' t· :, r
E'.;t :'In I,
----
0, SECVlUip PARTY(IBS) NAME .... ND AODRESS
:".-..NS",J.'fIlIGA (n
rt
J1'· .... •
fSOS fRI I.IllM hVO
flt,PFM.w I:STATfS Il eOI ..
Con\lCW'l ... )'l"I 'II·". Phono ND :
e. A8810N&1! N-.MB AND AI)OIUl8t1 (llonYI
C<Jnlaal Nlmu; Phone No :
-_ .... -
and olher Inlonn.non.
;'" ,,71". ,ll··"! h .... '
...... !:' ".n rf ,.1', "
F. 8IIJNAT'dZ8, In OAS Chuplnr 70, ALL SECUReD mUll 'illn U(l'l FMirlQI.
OY' _ Jfl. @jlfAA.t; ___ ._ fly: t;: \..h-
By. _ _." ..... __ By' ------.......,-..l.dl-------
_ rorly(lo.) .. ". Deblar Slgn,IuI.(.) II ___ __
RBTlJRN AOHNOWLEOOMBNT LmER TO: n.m&, • .w .... , and Id.Na" for Ihl debto, 1I!I.d .I>ovo. Umillholdtnlll" 10 .lgIIl CIIancllll,
REr:tiA TO INSTRUOTION, NUMOeR 1,) ...... 0' plInl ou"' •• III b .. lin.
I nA'SM .. .• r.;,r,1I,lij"; , • " .. ' . " ",
FliES
"f-U!l.'ru·Lj·1JB:.U W"'t f=-t •• ,
H r. Of
"kR 'if J. tI r
NOTe· '."., ......... ""JOId wIiI VI"" 01101_'<1""
Thl """ .... MI ... """" ....... _ .. _
"" •.. ..-_r>f_IotVINI_,
1>0 NIl' IUtlOTIlUP'lldATfI"_'DIU! NIO/OIO
I.'IUNO OFFICIlR
,t:!!
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 19 of 35 Page ID#: 19
-"-' - .... --
1
uce FINANCING STATEMENT AIU • .:.· .... " .......
(GE Commercial Distribution Finance Corporation
PO Box 6610
Orange, CA 92663
L
for tho addlUonl\ pOriod provldod by I ...
." .-- •...
250690
9/1/200412:39:12 PM
OR Sec. of State
4. ASSIGN ENT (lull or ow. oT«.tlQnooln Md addfoMor 1lM1g1\&G klbm705'o/'IJ:I 0I10qWO nOlll'Jpf([.lI9nor .... komO.
6. aNDMENT (PAR-TV INfORMATION): alfeo\& Dablo, 91 80bU/.d Puty (iiOOrd, ¢h8<lk onlym 01' thoe.two boj(.,.
AltO ohtook.Qlll (lItho 100Iowhg Itll"tOI!ox •• ·w ptQYIdfi ... hrormatlOllIn toM G N'40l7.
Dncrlbo·oolllll.oral
g, NAME QlrSECURED PARTY RECORD AUTHORIZING THIS AMENDMENT (namo IlOrjII lhIe Ie anAulgnlhtnl). 1111\) I'M AmtndrTliorhtll\li!)lf,tod bY a [MbtOl"whlQlf
Mdo ore.dd8lhDlIulhOlldno OIbcoT, or IlIdf Is a Termn.1lon .u4horlzed bv a Debtor, chKk harD and enll1f namo Of DEBTOR IhI.AmBnd(nenl.
a a AME
GE Commercial Distribution Finance Cor
oA Db. INDIVIDUAL'S LAST NAME flRaT NAME 0 A 'SUFFIX
10. TI FllE R FSRE. DA "A
• Cvole Sports of Salem Inc' trans! 107498- or- 01119/95
FIUN" OPl'leI! cOPV _ NATIONAl IIcn FINANClNR RTATFMFNT AMFNn",FNT IFORMlinml IRFV. 071?l11RAI
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 20 of 35 Page ID#: 20
1012841605
UCC FINANCING STATEMENT h ••• _. ,_,,,_,,,
[GE Commercial Dlstrlbullon Finance Corporation
PO Box 5610
Orange, CA 92863
L
250690
9/1/200412:39:12 PM
OR Sec. of State
ASSIGNMeNT (Mf or pNUaO: Glvo nlrm O!IIUIgnIlI In Item 7uI 7b Md addRN of A"'9Utlnlam 7oo-Moil nAfTIIJ of attfgnQf In ftom G.
6. AMENDMENT (PARTY 1hle Amendn'l'll"1ei'oott s,ou,ed PfJ!yOl rdOOld. Ohecl\onl)r9llt ofthah lwo
Alto ahllck.£illD ollbl lolloMlp lIvee bOXlllllli proW:Ie 'PPI'opTlalll /nfoUlll!iUoo In i!.OJna; G Md'or7.
TRANSAMERICA COMMERCIAL FINANCE CORPORATION
CORPORATION
001lal0l4' dnorlpllon, QI' do.orllle collal&ral (jaUIO/lIld,
g, NAME op·SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT {ne.MIi'oIa oor; ",/it" anAAfllnlnllnQ. 1I1h" It 'fI Arn.ndn'lellf.eu.Ih¢.m fW«
.dd.-coU6Ie,a) ad4.Ih, 8\11hQIWtIli or 1I1hJe.1 •• Tlrnm61bn Iulhorf;:td by .. Deblor, chlok mi. end c,,'IlK I'IIlII\e Of DEaroo Ifllllll\orllng Ihl, AmeMmlnl
a. AN ZA NA
O
Transamerlca Commercial Finance Corporation member of GE Commerlcal Finance Com
R Pb,INDIVIDUAL'S LA8TNAMIZ fllAST NAMa MIDDLE NAM
10,OPn PI DATA
• Cycle sports of Salem Inc· Irans#o10749B· or· 01{19/95
FlUNG OFFice COPY _ NATIONAl IlnO r::'INANGINA RlA tl=MFNT (FORM 071?lt/Aln
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 21 of 35 Page ID#: 21
2841
UCC FINANCING STATEMENT I-\'VII;; .... ", ....... .
[GE Commercial Distribution Finance Corporation
PO Box 6610
Orange, CA 92863
tOf Ihe a.ddNonal pirlod provl<lod by
, ...
250690
9/1/200412:39:12 PM
OR Sec. of State
6, AMENDMENT (PARTV INFORMATION): ThIs a1lul8 89CIJr.d PIItY pf ,Gcord. Chackon'" JW.I of IhOM 1M
Aleo dlookRlll ollh" 10110,,)10 Itv'H 1Iox •• 14lI provide IPproplf ... Won7Xlllon III .. maG
tl.",.,od "Hod',,,,
O. NAMe OF SECURED PARTY Of RECORD AVTHORIZINCl THIS AMENDMENT ,I.
.dd, oolaleral Ol"add,lh lIulhClrhlng Debtor, (If a rerniolai\on a.(I!.boflzedby" Debtor, ;hf,k hot.
90. ORB [ZATIO N e
GE Commercial Distribution Finance Cor oration
OR 9b.INDIVIDUAl'S LASTNme F1A8TNAME
10. OPllONAL fiLER RI:FBRENOE DATA
• Cycle Sports of Salem Ing· trans# 107498· or· 01/19/95
nor,IC1ij:, It Itn Mtlgnll'*\l). IIlhJ$JtM til a D"6blot't'Allr;tf
Md tnlti'nlll'te 01 DeBTOR
ODLSNAMIi SUFRX
FIUNOOFFlCECOpV_NATlnNAI linn FINANOINARTATFMFNT IFOAM I/OO"IIRFV. n71?M1Rl
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 22 of 35 Page ID#: 22
07/20/2005 13:58 FAX 848 475 1085
CDF-IRVINE-CREDI7
-." .. -... "-. -.. -
-- ------.
II
8000081507
uoc FINANCINQ.STATEMENT J
raE! Oommerolal DI&trlbutlon Flnanoe CQrporatlon
PO Box 6910
Orange, CA Q2883
L
'Cypll! Sportll of Salem Inq.· AIMS! '97428.11191$§
250690
7/20/20054:56:31 PM
OR Sec. of State
OA
•
_If INtIi .... r IrsnJlJN,IUJnrAln IIITiIl"TI=MP"1\IT ,e.UP'NNII:II.IT'-'RUI '(",fIott/lit"" ttr»CilQA'
07/20/2005 WHD 15:00 [TX/RX NO 65531
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 23 of 35 Page ID#: 23
UCC FINANCING STATEMf
f4'721111S. V4I2010
Corporation Service Company
285 Liberty St. NE
Salem, OR 97301
L
State of Or.
Conlfnuatlon 1
250690·6
01/04/1002:41 PM
OR Sec. of State
v
't. AsslaNMENT (lull 01 p •• U"): Gtta nllJ\l!Ior IUr,ftlllIIII itt'" 7aot7blncl'adll'luol ... " In ilwn .'111 11M! nlme ofl • .,,,norn illm9.
5. AMENDMENT (PARTY INFORMATION): lhl. Amondmtnlalfecl. Seculed Part)' gf Chick only S!IlIIII lheu lwei botn.
Cl-iANaEnimllandlOlld4I1I.! PlN5' '1IDllolhedl!.ailGdlnMlGlbn.i
r al & a In Iha e/addleuofa
DElETE name: aMi ,ecO,d nllna
bade ed 10'
ADOnaMa: Canp/ele item 71 0I7b, ...... alloilem
allo e damals.1 (1'1 I II.
6. CURRENT RECORD INFORMATION:
h. OROAlillATiON'SNAME
CYCLE SPORTS OF SALEM INC
OR eD,INDIVIDUAL'S LAST NAME flRsrNAME MI ENAId 6UffIX
7 CHANGED (NEW) ORAOOEO INfORMATION'
7L OROANIZATION'SNAME'
OR
7b.IND/VOOAL'S LAST NAME FIRsT NAME I.lIODLE NAldE' SUFFIX
7c. MA/LING ADDRESS CfIY
STATE _rrniTAlCOOE
COllUrAY
76 • .!igEINST6UClI/lNS
ItD'L INFO RE4 I 70.TYPE OF OROANI2ATION
71. JURISDICTION OF oRoANIZATION 711. ORGANIZATIONAL lull, If anr
I
n""""
8. MlENOMENT (COLLATERAL CHANGE). ,huk only Dnl
D"c.rille GOIlII"., 0 d.llid 01 Olcld.d, 01 13"'0 onIIlIlO,ollll.d duc.llpllon" 01 ea/llle", DUlllind.
9, NAME OF SECURED PARTY Of RECORD AUTHORIZING TttS M4ENDW!.NT (IIlme rllI.IgIlOl,.\hh; I. 111'111 II IIIArn.ndmDnlluthodiodby .. DllbIOIYotkh
.dd_ c.oUa,"d Of aoU, tho luU\oIIlInll o.blOl, OIl1lNal.a 7111m.lnallan ,"hefIIH by I Debtor, ditGk hlrll and onl.t naml 01 DEBTOR IIIIhorldl\9 WI Am.ndmenl
91. ORGANIZATION'S NAME
GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION
OR. 8b,INOIVIOUAl'S LAST NAME flRSTNAIdE MlOOLENAME SUFFIX
to.OPTIONAL AlER RefERENCE DATA
CDF . MOTORS PORTS • LA YAMAHA MOTORSPORTS ·1577870001 DEBTOll
4721711S
FILING OFFICE COpy - ucc FINANCINI3 STATEMENT AMENDMENT (FORM UCC3) (REV. 05122102)
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 24 of 35 Page ID#: 24
UCCFINANCIN.GSr ATEMENT AMENDMENT
raE Commercial Distribution Finance Corporation
PO Box 5610
Orange, CA 92663
L
, .
535885
6/27/20054:42:21 PM
OR Sec. of State
6 •. AME!NOMEt{T (PARTY ThJ&Anterll{monl "1:1111"01& 81tOUI'Ild PIoI1y.QlI*rd. ct\h,U1t11'JO ••
AllIO dillck llllI,ollOo Itv'6e boXpw pmiCio awoprrilllJ WQI'«dIon 1n.101l'ol8''n6'<<7.
l'RANSAMERICA FINANCE CORPORATION
'g, Nf1M2 QF PARiY OF RECORD lHlS AMENIilMEtrr I.'"",,, '" """ II \h.' ....... """'n, 'flh!1" ",A",,_, """""d", 0'1oIo!""""
add, totl&lor61 or ,ckJlJlh' iUlhodrltlg DebI(I(, -prlf thlt 1& Doblor, the6khwo (N'Kl eMwname ofOOBTOFh.trthortiln.ll Ihle AnHnr$hlenL .
ga, OR I NAMe
Transamerlca Commercial Finance Cor oration member of GE Commerlcal Finance Companlas
QR Qb.INOIVlDUAl'61A8T NAME FIRBTNMlE· IDD.le N.\ME :SUFflX
10.DPlIONAL r1lER RiFE.FlE & D;\1A
"Cycle Sports of Salem Inc." AIMS#10749B- or-12114/00
, ,
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 25 of 35 Page ID#: 25
.uCCFINANCINGSTATEMENT I
[GE Commercial Dlstrlbulion Finance Corporallon
PO Box 6610
Orange, CA 92663
L
535885
6/27/20054:42:21 PM
OR Sec. of State
&, (PAAl:¥INF.(11AfM,TIONt: ThI'AlJ'lIIrkJmenr-'o.IfII'Ma P(Uly bf re'cPl'd.
All(! ot\odtmR.oIlhe 1/11" box" proW;le Gp'prop!1tl5 IN'orll'\lllQllln ltlJ'l8l8 IIl)6'ort.
9, NAMe PARTV'Qf·AEPOf3,O AV'{Ho.RIZtf\.!Q 'THIS AMENaMENT Of,lllw.. lUll" 'f,Gh'
add, co14!ttal or add, 1M lull.hoddng 0,6\or. or H !hilI. a f1(al1,blofj' ohl4lthore &lid of'OEBT.OFhulhorfiJng lbIeAtr»ridimnt.
9a. ORCl IlA (j) S
GE Commercial Distribution Finance Cor oration
O..R 9b, INO\VIOV NAME flR8T NAMe· :8UFFI)(
1a.-OPTI . JlERRI!FERE OA A
"Cycle Sports of Salem Inc." AIMS#1 07498- 0[- 12'14/00
IlnOf;I"lA'tJf'!IMf.II cn":6.TPU!:'hJT AnJ:Plnu.u:;MTn:nRu JI('".r..,\ 10"11 fi'ma/aAt
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 26 of 35 Page ID#: 26
EXHIBIT 3
(Guarantee of David & Kathy Colfax Dated 12-6-2000)
GUARANTEE
I'orvalu8 received .nd In conalderalion of ilny loa ... or other financial aCGommod.tion of any kind herelorD ... now or hereafter made
or given by TllnllrnerIU Commarcl,1 Fln.nca Corpor.llon ("TCFC") to Cycle Spo .... 01 Salam. Inc. (lha "Dubio" or Iv a custome, or the
Oeblor. Iho undo"lgnod (Iho 'Gua,anlor) un"ndlUonaily gU .. lnt ... \tie rull and punclull paymenl and pertorman .. when dUI. whather
"pon demand, .. malurity Dr earller"by reilon of Iccelerallon or otherwlea. and al all Iinellheroafter, of III or the Indebtedness i1Ind
obrlQation. of every kind and nlliure of the Debtor to TCFC hoWlOIver erGatad. ari&lng or evkIencad, whether II1&il\g before or after ..
bankru"tc.y 01 ,he Debtor. whBlhflr dlrlltil Dr Indlm;1. ab5olu1a or contingent. joint or Mveral, now or hereafter f1xiallno. or dlMl Dr 10 blaome
dIS" ("" such IndebtadnBIII Ind Dbllglltions baIng heralnafter referred to '9 tne "UabIdtIes·). The Guaranlor fUr1l'M1r Borlis to pay on demand
all gOII, anCSIXJ'.nIl5 incullid by TCFC In endelvoring to caMelOt tll8 Llabllilits or In ."forch,g Ih" Guaranlee.
This I •• gUl13nl ... 0' paymenl and not 0' coiltotion. Tho IlUlrlnlor Igr ... Ihlilhe obliglUons or Ihe Guaranlor unCier Ihl.
OU.flinl". thall be Irralp."liVe of (I) thlt invalidity or unenforGeobliity of the LI.bilitie. or any IIgr.ament or instrument relaUng
10 tho LI.blinios (.omellma. hlllln.ftar referrod 10. colltocllvlly. u the "Documonlo', or ony law a«eeting lho Uoblllile. or .ny Documenl; IIQ
tho Ib,en .. 0' .ny 'HemPllo .. lIoct IhI Uabilllie, "om Ih.Debto. or Imm any o\tillr porion prlmartly Dr .... nd.rlly Uable willi r.spool 10 Ihe
liabilities Dr of any attempt to realze upon any 101 lhe Uabllitl.5. for th. obllgallOl1. of .ny such other person, or for this Guarantee:
(III) IIny '"nure by TCFC to ac:c{vlrc, perfect Or maintain. security h\terost In or to pral9Cf any coIlareral for tha Uabnl}es or fOI Iny luch
obligation,: (iY) anY do,"n .. IrI.ing by r ... on 0' any 0' other dor ...... 1 Ihl Cebtor or 111)' olher porton IlIbte on 11>. .. ; (v)
the acceptance or addh.lonaJ Plknarhy or .. liable on \he UablliUel; (vi) Ihe dlsllllowance or avoidance atBII Dr any porth;," of
TCFC'o Claim,.) 'or "p"y ... nl 0' tht or olony .. lIate,al lor Iho LI.bIliU .. : or (.lllony olhir clrcum.tanco which mighl olhorwta.
conilituia 8 dIscharge 01 defen.e or. gUDrlJrnor.
Upon lit default undar IiIny Dooomunl, TCFC may proceed dlrlldly and at once agaltllllht Gu.rantor 10 collect lhe full ,mount of III
or any 0' Iholl'blilly 0' the GueranlDr hereunder. ",Mhoul nollce end WIItlDUI firsl prGOIIeding Bg.in,llhe Coblo, Or any oilier person
or se .. ndorily lI,blG on the Llobilltles. TCFC ",.11 haUolho ",dtr11v8 rlghl 10 dllllnnlnlllHo oppbUoo of payments and CI1OdllB. K
any. ftom Ihe GUlronlor.lho Dablor. or any Olher parson prlnl,rIIy 0, .. cond.n!)' ti,bl. on lilt ...
TCFC It heraby IUlhoriud. Wllhout noli .. (which is har.by wllvod by lile allOr.ntor) Ind wMhoul .ffKllng thl lI.bll;jy or the
GUlrantor hereunder, from Umt to Umt to 0) renew. Ixtend, .eulerale or othelWlllll ,hange the lIme, or mlMer for payment ot. or
other term .. rtlttlng 10, the UGbIllU., or otherwise modify •• mend, ChDnge or w.llI, r:M1p1ll'nca with Iho tarm; of Ihil lJabllldll or Imy of the
Documents; (6) accepl pertlol paymenl. Otllhe U,bVMi .. : (Ii) lli<e .. lIolerol 'or Iho Webil;';'. and tho Dbl\llllon. 01 any olhor p"",n primarily
or IBcondarily Nabla on lhe Uabllltlul . .and eXdllnge. 1111 .. 8, rullztl upon or In&lltulu any proOEleding to leallze upon. or liquidate any .uc.h
collalaral; (tv) apply IUch coUaftral .nd dirllct Ihi oralr Dr manner of lall IlHIr.or at TCFC tnlY determIne In Itl diecretlon; (v) felease or
""mpromi ••• in any maM". 0, coIleot or any proceeding to colloct the Uabilffi •• or any portion (vi) .>Mnd addilonal Ioonf.
credit and "nanclal accommodltlons Ind oiheIWla8 create add!llonaJ Llabll/Uel: (vII) enforce or InallUlIe any ploceedlng 10 enforce any OIher
gUliranl", of the UGlbll)lJe1 Dr release, or comproml •• ln Dny mIInMr th, obiigg,lIonl 01. gny otlllr pilion pllmgrily or lecondarVy liable on thl!
•••
Until the GI1d oth.er obllgilions of the Dlblor to TOre &hI" haVD been paid and dlllct1IJgcd in full Ind III Docul116nla
(Includklg any convnllmenll With relped 10 any UablllUu) have balln tlrmlnBlld, Ih8 Guarantor Ihall have no righi, and agl181 II will nol
m.k •• ny claim. agaln.llhl Dlbior or 011)' o\tl,r parton primarily O. Moondlnly I"blt Oft tho Llabllillo. rt",teI 10 or on .ceounl 0' 'ny
poymenl Ihe Ilu,,,,,,(o. may make on .... unl of Its obllgotiona und.r Ihi. GUlrlnto •. inoludlng Wlthoul IImltdUon •• ny right 01
&ubrogallon, exonereU\)tt. rtln'lbuttement. c:onl.nbuuon Of indtmnlfdtlon.
U Ih' Debtor or Ihe Guarantor ahaD dta Dr If the Dlbtor or Inl Gua,antor II1Duld at any lima dllsON' Dr ltrmln.tt Itt or
beeome In80lVent or make 8l1ener,,1 anlgnmiflt far th. benefit oJ uDdllala. or If a InSolVoncy or I'tOl'glnlzlltion proceeding thIn
be flied by or 19a1n.1 or commenced In ... p.et 0' Ih. Deblor or lho Gu .... nlor. Iho Guaronlor ohall. lllhe option or TCFC. poy
TCFC the full amount which would be payabla hallUMe, by thl Ouar'nlOl tf.n U,blllues wert thin dLIG and ".YIl)le.
Thellua,anlo, waivta eN sel·d" Bnd oounlerctoim'Bnd all noU .... p .... nlm.nl •• proto'lland demand' 0' any kind Wllh .. e",ot
to the liabilities lind Ihls GUlran\8a (Including without ImlLaUon demand' for performance. notices of non-payment Of non-pedotrnlnce.
nolicl!ls of protell, nollcil af dl,honor Jnd noUe .. 0' 'CCtptanco or Ihle Guaranlee) Bnd promplneBII and diligence with raillectto the
Llabilil ...
GU8lantor horeby agrees thai TCFC thall have no duly 10 Idvise Iha Guaranlor of InlOlmaUon MIll or hereafter known to
TCFC regardlnlJ the "nancll'" or other conctitlon ot the Debtor or Illy other pSllon pnmarily or .lconcllrMy Uabll an ttl. Ulbllm., ar tOg.Qrdlng
.ny clrcuMltll"lot bearIng on the rfak of non-p.ymenl 0' the UlilblliUel.
The Gu,,.nlor agr ... to provlda ID TOFC. promptly .n •• TCFt' .... qu,$Ilnlli1lfor. auch fin,nCIlIl,ltlements and olllOr finlnclII·
record. and Infomrallon IUPllcting thl Gulfantot AI may be from time to lima requeal8d by TCFC. The Gu-lrantor authorize, TCFC to
Inveallgat8 or InqUlftt. 0' fOlTl\lr or cutrent creditors or othar parlon. Ind provldR fo Dny crtdltOrt I)r oUwr porson, any and all
ftn.nclol. crldll or olhor Inform.Uon reglrding or r ... tlni 10 lha Guar.ntor. whether I""plied by tho Guo .. nlor 10 TCFC or olhelWl .. obl.lnod
by TCFC. wilh .uch to Ihroughout (ho t, ... 0' thit Qu",,1H.
The Guaumtar IIgre81 that thl lal, of Inventory by TCFC to a perlon who 1& liable to TCFC under a gl.1i1rantee. endorsemenL
repurch ... _groomenl or Ih. 11101 lhell not be d"mtd 10 be • trlnsr.r subject 10 5ectlon 9-504(8) ollh. Un"o .. Commlrcl,1 Code .. In
orr.oIln Illinol. or any olmltor prOYIlion olany Olhor fPpJlc1ib1G tow. and the G"'rontor w_ any proyl'i •• 10 tho comrlt)' oI.uch Itwt. The
OUlllanlot Igflll that "p:urcbllse of Inventory by. leller of goodll pUJlU.lnt to II .. .. agtttIMnt between TCFC ... d lUoIllHiller ahall
bo I commorclally ..... nlbl, method of 1he auaranlor .hall be llabla ro Tete lor .ny deficiency ... TCFC· •.
di,poIUlon. including wllhoulllmllation 0 repureb ... by ouch ... lIor. ,.glrd",. 01 tho ,ubllquenl dl'pOfiUon 01Il10 l"yenIOfY·by Iho
purchlS.r. The Guarantor II nol I banoncllty 0', and hll no rlCht (0 l'tQ.ulll TCFC 10 enrorce. Iny repurchllle agreement. Any notice of I
T-41111118
2127
1013
EXHIBIT 3
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 27 of 35 Page ID#: 27
dl'poSIUon 9holl bo deemed ree,onable and properly given If given 10 the Guaranlor 011 ... 110 day. btfor. ,uoh diBpO.iUon In accoldance
with the notice provl5ion below.
This GUlll"ElntOG shall ba blndlns upon the Guarantor Bnd upon the hairs, personal repl'GGentatives, trusteos. BUcceS-sots and
iIIS&ign5 of the GYirilotor. and shall Inure to Unl b9nefit of TCFC's IUcctUOrB and II"lgna. Re(eren,.e. herein to TCPO sh6lJl be dl!ltme(t to
refer to TCFC Bnd ila succeSSors and alS'gna,
Wherever p055lbla Bach provISion Dr thle GUElranlae 'hall be Interpreted In such manner as to be affectIVe and valid unCler
appllCllbl. law, ony provi,lon of thl$ Guarant ••• holl b. pr<>hlblled by or Invalid Under auoh low, SUCh provision ,hall be Ineffective 10 Iha
extent of ouch plohlbltlon o. Invalldlly wlthoullnvalldatlng (he remalndor or .uch prOVision or tho remolnlng provl,lon. of thl. Guaranlee.
This Guorant •• may b. terrnlneted only upon wriKen (0 TOFO .ffootlve no eo.l.r 30 days after the dale .ueh wrlilen
nollce i. actually received by TCrC. Any suen IBlmlnation .hall nol offeot Ihe lI.blllly of Iho Guorantor und.r Ihls Guoranl.e wllh .espect 10
Uabllitlo. crealea or Incurred to the .ffectiV. dote of such termination. W1lhovt IImlllng fOlegolng, any ouch tOlmlnalion .hall nol
rolat. to eny approval given by TOFO 10 or for the bonam of tho tJ6btor pilar 10 tho effectlv. dal. ,I Buohlerrnlnatlon and upDn any such
\&rMinatlon, the Guaranlot ehall nlveJ1haIG88 remain liable with reaped to all LlabUlUes, and the ",.,tfcn'nance of all dUUa.s, ccealad or arllllng
therotofor. or based On • oommlt",onllhorelofolo enlorod Into or Bny BpprovellnerelofOI. given to or for Iho bonofll of Ihe Deblor to the filII
extent of the Guarantor'5l1ablllty therefor as provided horeln.
All and other oommunlcallons hereunder to or upon the raspaotlve parties shall be In writing (and, In the C:ilDa or a noliGe by
Ihe Gu.r.rnlor,ldenllry tho name oflh. Oobtol) and sholl bo dollve"a by hand 10, or mailed by "1$1 ciao. Unlled Stat •• mall, pOlllgo prepaid,
cenitied, r.lurn r.celpl reque.ted, address.d 10, or by personal delivery la, Dr by a reputable overnight courier •• Nlce addl .... d to, Ih •
• ddre ••••• paclfied below,
No dalBY on tho part of TCFC In Ihe exercise of .ny rlghl or lemady shall operale a. a Ylalver theroof, Bnd no slngl. or partial
exercise by TCFC of any right or mmedy precludo any fURher exarclso th.reof. No modlfioellon, welver or amendmenl of any of Ihe
plovlslons of Ihl. GuaranleG >hall bo bInding TCFC except •• expl* .. ly •• t forth In a wrlUng duly signed on TOFC'S behalf by any
authorized officer Or agenl of TCFC and delivered by TCFC I. the Guen .. lor. TCFC', failul. at a.y Ihno 10 require .Irlet perfolman" by the .
GUorMlor of eny of Ihe pr<>vlslon. In this (luolonl.o .hall nol waive, affect o. diminish an) rlghl of TCFC al any II"", to demand
stllct performan .. IhereWilh.
This Guarani •• conl.rn. all of Ihe undOlatandlnge. proml ... undertakings of Ihe parUes hereto concerning Iho subject mart.r.
All prier undertaklnSis lind agretments. oral Or wriHen, conumln,," the maHer ala merged hurern,
io t!'le extent that the Guarantor or the Debtor makUD 8 payment or pPYffi6nls to rCFC Dr P(CFC enrOICes lis saourlty Interests or
O)(erel ••• itG rights of .otoff, and such paymenl or paymenls or tho pro*as of such enforcel"".1 or 'oloff or any part thoreof are
aub •• quently Invend.led, deolared 10 be flludulant or preferenllol, •• t 1.lde andror rcqul",d 10 be 10 a trustee, recelvor Dr any other
party under ony bankruptey law. state or rederallaw, COmmon law or &CjuHable cause, then to the of such rooovetY, tho obflgatlon or
part Iharoof originally Inlended 10 bt ,.Iiened .h,1I be reviVed and cenUnUe<lln full force and effect nlfsucir paymenl had nol be.n made or
suoh Inrorcemonl or setoff had not ocourred.
The Guarentor hereby con .. nte to Ih, JurtsdlCllon Of any local, alale or federel court localad within the Slate of IIIlnol. and waiv ••
any ob)eetlon whIch the Guarantor may havs based on Imruoper venue or forum "on cgnVGl'lleflS (0 the conduct of any proceeding In any
SUCh court and waives pSl'$or\al service of any Bnd all prooeSB upon It, end l;oBSontA that all such $I)rvlce of prOC8&& be made by mall Qr
messenge. dlreoled 10 II In the I.m. manner as p,ovlded for notle .. to the Guarani •• In thl. Guaranl.e and Ihal 'ervlce 80 made Shall be
deeme<l 10 be compl.ted upon the earlier of .ot"al receipt or 3 day. aner Ihe seme sholl nave been po.toa to Gu.ranlor or Iho
agent as .el forth below. The Guaranlor haraby Irrevocably oppol.\$ CT corporation Syslem a. Ihe agent rot the
purpOIi of occapllng tne .';lVlce of .ny pro .... wllhln tha Slate of illinois. Tho Guaranlor waive •. 10 ,ha exlenl by law, any bond
or surety or •• cuilly upon .uch bond whloh mlghl, bul for Ihle wolver, be required OITCFC. Nothing ""nlalned In thl. ,eotion ohallaffect
right or 10 urv. legal proee •• In any other mannor permiHed by law Or olfect the rlghl of 10 bllng eny action or proceeding
ogafn$t the Guarantor or Its property In the court. Or any olher Jurisdiction,
TO THE EXTENT PERMITTEO IIV APPUCABLii LAW, Tllii PARTIES HERETO I!ACH WAIVE ANY RIGHT TO A
TRIAL BY JURY ON ANY CLAIM, ACTION, CAUSE OF ACTION OR COUNTI!RCI.AIM ARISING UNDER OR IN ANV
WAY RELATED TO THIS (lUARANTEE, AND ANY Tl'iiORY OF LAW OR EQUITY, WHETHER NCW EXISTING OR
HEREAFTER ARISING.
Tlils GUARANYEJ; SHALL BE EFFECTIVE WHIiN ACCEPTED BY TCFC, HAS BBEN DELIVERED AND ACCEPTED AND
. SHALL BE DEEMED TO BI! MADE IN ILLINOIS, AND SHALL De INTERPReTED AND THE RIGHTS AND OBLIQATIONS OF THE
PARTII,S HERETO, WHETHER ARISING IN CONTRACT OR TORT OR OTHERWISE, sHALL Bt! DETERMINED IN ACCORDANCE
WITH THE INTERNAl LAWS (AS OPPOSED TO THE CONFLICTS OP LAWS PROVISIONSi OF THIi STATE OF ILLINOIS.
ACC6PTANCE MAY BE BY FACSIMILE SIGNATURE,
T-4711196
2t27
2013
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 28 of 35 Page ID#: 28
If mo", Ihan on. pttun Offnlily hIS slgnld 1hI. Ouatantee, Ihen Ihelerm 'GUlra.tor herein ,hall nil., \I) etch 01 the undersigned
(allier Ilia. TOFO) OblIglUOnl Of •• ch of tht undera!oMd shaH bo jolnl and .. ve",l. Th. Uf. 01 any «,nder ellall Incl,"" '0 Olliff
gend.... .
IN WITNESS WHeREOF, aUl"'m.o '8 dlttd Deoolnber I, 2000.

' ••••. ,
" \ili"iIWtiilidiiY. _iiliill/iillpll/1J.1
NIUIIe: J..AI2A9· <AflJti II p
INDIVIDUAL GUARANTOR
U;VOOlfaX
CORPORA110N, PARTNERSHIP DR UMITED UABILITY COMPANY -GUARANTOR
An!'T:
TItle: itc;t;ll') A .. lllInl SICftlla'Y
PdnlNamt:
WITNESS:
PlilltNamo:
Accepted In IIOncir.
T-I71VS8
2127
lI'dnl Ham. 01 Cluollllltll]
By:
11111:
Add" .. 101 NollCae 10 GUlIIAI,,,,
TaxIDHo.
Add,.a, NoUces to TOpe:
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 29 of 35 Page ID#: 29
EXHIBIT 4
(Guarantee of Capital Northwest Dated 6-13-2003)
GUARANTEE
For value received and In consideration of any loan or other flnanclal accommodation of any kind heretofore, now or hereafter made
or given by Transamerlca Commercial Finance Corpo",lIon ("TCFC') 10 CYCLES SPORTS OF SALEM, INC, (the 'Deblo") or 10 a cuslomer
of Ihe Deblor, the undersigned (the "Guaranlor") uncondilionally guaranlees Ihe full and punclual paymenl and performance when due,
whether upon demand, at maturity or earlier by reason of acceleration or otherwise, and at all Urnes thereafter, of all of the Indebtedness and
obllgallons of every kind and nalure of the Debtor to TCFC howsoever created, arising or evidenced, whether arising before or after a
bankruptcy of the Debtor, whether direct or Indirect, absolute or contingent, Joint or several, now or hereafter exlsllng, or due or to become
dUB (all such Indebtedness and obllgatlons being hereinafter referred (0 as the "LlabIllUes
U
). The Guarantor further agrees to pay on demand
all costs and expenses Incurred by TCFC In endeavoring to collect the LlablliUes or In enforclng this GUarantee.
This Is a guaranlee of paymenl and nol of coliecUon. The Guaranlor agrees Ihal the obllgallons of the Guaranlor under this
Guaranlee shall be uncondlUonal, Irrespeollve of (I) the Invalidity or unenforceability of Ihe LlablllUes or any agreemenl or Instrumenl rela11ng
10 Ihe LlablllUes (somellmes herelnaUer referred 10, coIlecUvely, a.the 'Documenls') or any law affecllng Ihe Llabllille. or any Documenl:, (Ill..
Ihe ab.ence of any a\lempllo collecllhe Llabllliles from Ihe Deblor or from any olher person primarily or secondarily liable wllh respecllo Ihe
Llabllilles or of any a\lempllo realize upon any collaleral for Ihe Llabllllles, for the obllgaUon. of any such olher person, or for Ihls Guaranlee:
(III) any failure by TCFC 10 acquire, perfecl or melnlaln a securtty Inlereslln or 10 prolecl any collaleral for Ihe LlablllUes or for any sucli
obllgallons: (Iv) any defensa artslng by reason of any disability or other defense of Ihe Deblor or any olher person liable on the Llabllllles: (v)
Ihe acceplance of addlUonal parties primarily or secondarily liable on the Llabllilles: (vi) Ihe disallowance or avoidance of all or any portion of
TCFC's clalm(s) for repaymenl of Ihe LlablllUes or of any collaleral for the LlabiliUes: or (vII) any olher clrcumslance which mlghlolherwl.e
constitute a discharge or defense of a guarantor,
Upon a default under any Document, TCfC may proceed dlrecUy and a( once agaInst the Guarantor to collect the full amount of all
or any portion of Ihe liability of Ihe Guaranlor hereunder, wllhoul nollce end wllhoul flrsl proceeding egaln61the Deblor or any other person
primarily or secondarily liable on Ihe LlablllUes. TCFC shall heve the exclusive righllo delermlne Ihe appllcallon of payments and credlls, if
any, rrom the Guarantor. the Debtor. or any other person prfmarlly or secondarily liable on the Liabilities.
TCFC Is hereby aulhorlzed, wllhout noUce (which ts hereby waived by the Guaranlor) and wlihoul affecllng Ihe lIablilly of Ihe
Guarantor hereunder, from time to time to (I) renew, extend, accelerate Or otherwise Change the lime, place or manner for payment of, or
other lerms relaUng 10, Ihe Liabilities, or otherwise modlly, amend, change or waive compliance with the lerms of the LlablllUes or any of Ihe
Documenls: (II) accepl partial paymenls on the Llabllllles: (III) lake collale",1 for Ihe LlablllUes and the obllgallons of any olher person prtmarily
or secondarily liable on the Llabllilles, and exchange, release, realize upon or InsUtule any proceeding 10 realize upon, or IIquldale any such
collaleral: (Iv) apply such collaleral and dlrecllhe order or manner of sale thereof a. TCFC may delermlne In Its dlscreUon: (v) relea.e or
compromise, In any manner, or collecl or Inlllale any proceeding 10 colleclthe Llabllliles or any portion Ihereof: (vi) exlend addilionalloans,
credit and financial accommodations and otherwise create additional Liabilities; (viI) enforce or Institute any proceeding 10 enforce any other
guarantee of the lIablllUes or release, or compromise In any manner the obligations of, any other person primarily or secondarily liable on tile
Llabllliles.
UnUi Ihe Liabilities and olher obllgallons of Ihe Deblor 10 TCFC shall have been paid and discharged In full and all Documenls
(Including any commllments wllh respecllo any Llabllilles) have been lermlnaled, Ihe Guaranlor shall have no righi, Bnd agreBs 1\ will nol
make any claim. against the Debtor or any oUler person primarily or secondarily liable on the LiabilitIes with respect to or on account of any
paymenl which the Guaranlor may make on accounl of Its obllgallons under Ihls Guaranlee, Including wllhoul IImltallon, any rtghl of
subrogatlon, exoneratlon, reimbursement, contribution or Indemnlftcatlon.
If Ihe Deblor or the GUaranlor shall die or If the Deblor or Ihe Guaranlor should al any Ume dissolve or termlnale Its exlslence, or
become Insolvent or make a general assignment for the benefit of creditors. or If a bankruptcy, Insolvency or reorganlzallon proceeding shall
be flied by or agalnsl or commenced In respecl of the Deblor or Ihe Guaranlor, Ihe Guaranlor shall. althe opUon 01 TCFC, forthwllh pay
TCFC Ihe full amount which would be payable hereunder by the Guaranlor If all LlablllUes were then due and payatile.
The Guarantor waives all .at-offs and counlerclalms and all noUces, presenlments, prota.t. and demands of any kind with respect
to the liabilities and this Guarantee (Including without IIml(allon demands for perfonnance, noUces of non-payment or non-perfonnance,
noUces of prolesl, noUces of dishonor and nollces of acceplance of Ihls Gue",nlee) and promptness and diligence wllh respecl 10 the
Llebllltles. .
The Guarantor hereby agrees that TCFC shall have no duty to advise the Guarantor of InfonnaUon now or hereafter known to TCFC
regarding the flnanclal or other condlUon of the Debtor or any other person primarily or secondarily liable on the Liabilities or regarding any
circumstance bearing on the risk of non-payment of (he Liabilities.
The Guaranlor agrees 10 provide 10 TCFC, promplly after TCFC's requesllherefor, such financial slalements and olhar financial
rBcords and InformaUon respecting the Guaranlor as may b. from lime 10 lime raquesled by TCFC. The Guarantor aUlhorlzes TCFC 10
Investlgale or make Inquiries of former or currenl creditors or other persons and provide 10 any creditors or olher persons any and all
Onancial, credit or other InlormaUon regarding or relallng 10 the Guaranlor, whether supplied by Ihe Guaranlor 10 TCFC or otherwise oblalned
by TCFC, with such aulhority 10 conllnuethroughoullhe term of this Guaranlee. .
The Guarantor agrees thai Ihe sala of Invenlory by TCFC 10 a person who Is liable 10 TCFC under a guaranlee, endorsemenl,
repurchase agreement or the like shall·nol be deemed 10 be a lransfer subJecllo SecUon 9-618 of the Uniform Commercial Code as In effeci
In illinois or any similar provision of any other applicable law, and the Guaranlor waives any provision 10 Ihe contrary of such laws. The
Guarantor agrees that repurchase of Inventory by a seller of goods pursuant to a repurchase agreement between TCFC and such seller shall
be a commercially reasonable melhod of dlsposlUon. The Guaranlor ehall be liable 10 TCFC for any denclency resulUng from TCFC's
dlsposlUon, Including wlthoul IImllalion a rapurchase by .uch a seller, regardless of IhB subsequenl dlsposlUon of the Invenlory by the
purchaser. The Guarantor Is not a beneficiary of, and has no right to requIre TCFC to enforce, any repurchase agreement. Any noUce of a
disposition shall be deemed reasonable and properly given If given 10 the Guaranlor alle.sl10 days before such dlsposlUon In accordance
with the nollce proviSion below.
T-4711/98
2127
1 of 3
EXHIBIT 4
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 30 of 35 Page ID#: 30
'.
This Guarantee shall be binding upon the Guarantor and upon the heirs, personal representallves, trustees, successors and
assigns of the Guarantor, and shall Inure to the benefit of TCFC's successors and assigns. References herein to TCFC shall be deemed to
refer to TCFC and Its successors and assigns.
Wherever possible each provision of this Guarantee shall be Interpreted In such manner as to be effective and valid under
applicable law, but If any provision of this Guarantee shall be prohibited by or Invalid under such taw, such provision shall be Ineffective to the
exlent of such prohibition or Invalidity wilhout Invalidating the remainder of such provision or the remaining proviSions of this Guarantee.
This Guarantee may be terminated only upon wrttten notice to TCFC effective no than 30 days after the date such wrttlen
notice Is actually received by TCFC. Any such termination shall not affect the liability of the Guarantor under this GUarantee with respect to
Liabilities created or Incurred prior to the effective date of such lannlnatlon. Without IImlllng the foregoing, Bny such termlnaUon shall not
relate to any approval given by TCFC to or for the benefit of the Debtor to the effecUve date of such termination and upon any such
termlnaUon, the GUarantor shall nevertheless remain liable with respect to all Liabilities, and the performance of all duUes, created or arising
theretofore or based on a commitment theretofore entered Into or any approval theretofore given to or for the benefit of the Debtor to the full
extent of the Guaranto(s lIablJlty therefor as provided herein.
All notices and other communications hereunder to or upon the respecUve parties shall be In writing (and, In the case of a notice by
the Guarantor, Identify tha name of the Debtor) and shall be delivered by hand to, or mailed by nrst ctass United State.' mall, postage prepaid,
certiUed. return receipt requested. addressed to, or by personal delivery to, or by a reputable overnight courier service addressed 10. the
addresses speclned below.
No delay on the part of TCFC In the exercise of any right or remedy shall operate as a waiver thereof, and no slngt. or partial
exercise by TCFC of any or remedy shall preclude any exercise thereof. No modlflcalton, waiver or amendment of any of the
proviSions of this Guarante. shall be binding upon TCFC except as expressly set forth In a duly signed on TCFC's behalf by any
authorized otncer or agent of TCFC and delivered by TCFC to the Guarantor. TCFC's failure at any Ume to require stnct performance by the
Guarantor of any of the provisions contained In this Guarantee shall not waive, affect or diminish any of TCFC at any lime to demand
performance therewith.
This Guarantee contains all of the understandings, promises and undertakings of the hereto concerning the subject matter.
All prior undertakings and agreements, oral or written. concerning the subject matter are merged herein.
To the extent that the Guarantor or the Debtor makes a payment or payments to TCFC or TCFC enforces Its secunty Interests or
exercises Its rights of setoff. and such payment or payments or the proceeds of such enrorcement or sotoff or any part thereof are
subsequenUy Invalidated, dectared to be fraudulent or preferenUal, set aside andlor required to be repaid to a trustee, receiver or any other
party under any bankruptcy law, slate or federal law, common law or equitable cause. then to the extent of such recovery, the obllgallon or
part thereof originally Intended to be saUsfled shall be revived and continued In full force and effect as If such payment had not been made or
such enforcement or seloff had not occurred.
The Guarantor hereby consents to the of any local, state or federal court located within the State of illinois and waives
Bny objection which tho Guarantor may have based on Improper venue or forum non conveniens to tho conduct of any proceeding In any
such court and waiVes personal service of any and all process upon II. and consents Ulat all such service of process bo made by mall or
messenger dIrected to It In the same manner as provided for nolices to the Guarantor In this Guarantee and that service 80 made shall be
deemed to be completed upon the earlier of actual receipt or 3 days after the same shall have been postod to the Guarantor or the
Guarantor's agent 8s set forth below. Tho Guarantor hereby Irrevocably appoints CT Corpora lion System as the Guarantor's agent for the
purpose of accepting the servtce of any process within the Slate of illinois. The Guarantor waives, to the extent permitted by law, a"y bond or
surety or security upon such bond which might, but for this waiver, be required of TCFC. Nothing contained tn this section shall affect the
right of TCFC to serve legal process In any other manner permllled by law or affect the of TCFC to Mng any action or proceeding
against the Guarantor or Its property In the courta of any other
TO THE EXTENT PERMtTTED BY APPLICABLE LAW, THE PARTIES HERETO EACH WAIVE ANY RIGHT TO A
TRIAL BY JURY ON ANY CUIIM, DEMAND, ACTtON. CAUSE OF ACTtON OR COUNTERCUIIM ARISING UNDER OR tN ANY
WAY RELATED TO THIS GUARANTEE, AND UNDER ANY THEORY OF LAW OR EQUtTY, WHETHER NOW EXISTING OR
HEREAFTER ARISING.
THIS GUARANTEE SHALL BE EFFECTtVE WHEN ACCEPTED BY TCFC, HAS BEEN DELtVERED AND ACCEPTED AND
SHALL BE DEEMED TO BE MADE tN ILLINOIS, AND SHALL BE tNTERPRETED AND THE RIGHTS AND OBLIGATtONS OF THE
PARTtES HERETO, WHETHERARIStNG tN CONTRACT OR TORT OR OTHERWISE, SHALL BE DETERMINED tN ACCORDANCE WITH
THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS. ACCEPTANCE
MAY BE BY FACSIMILE StGNATURE,
2 of3
T-4711/96
.... ." ...
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 31 of 35 Page ID#: 31
, I
If more than one person or entity has signed this Guarantee, then the tenn -Guarantor" herein shall refer to each of the undersigned
(olher Ihan TCFC) and obllgallons of each of Iha undersigned shall be lolnl and several. The use of eny gender shall Include all olher
genders.
IN WITNESS WHEREOF. this GUaranlee Is daled JUNE 13. 2003.
INDIVIDUAL GUARANTOR
WITNESS:
(Signature should be wilnss8ed by 8 non-related third party.]
IPrlnl Name of Guaranlorl
PrinlName:
ISlgnalure of Indlvlduall
Witness' Home Address Home Address for NoUces to Guarantor:
S.S.No.
INDIVIDUAL GUARANTOR
WITNESS:
(Signature should be witnessed by a non-related third party.)

Wltnass' Home Addre ..
be witnessed bya non.r aled third party.(
Name:
[boll.....
Address:
Accepled In illinois:
C:RPORATION
By: Citl:istopher ('. Meals
Vice Presi-':"''':; - '::redit
T-4711/96
Name of Guaranlor]
[Slgnalure of Individual]
Home Address for Notices to Guarantor:
S.S.No.
o LIABILITY COMPANY. GUARANTCR
S for Notices 10 Guaranlor:
510'2 Pn d-\a",s\ Ko.,l tf\,J f
Addrass for NoUces 10 TCFC:
Transamerlca Commercial Finance Corporation
5595 TrIllium Boulevard
Hoffman Estales. illinois 60192
AHentlon: Credit
3013
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 32 of 35 Page ID#: 32
EXHIBIT 5
(Default Letter Dated 7-15-2010)
GE Capital
Commercial Distribution Finance
4 Pork Plaza Suite 2060
July 15, 2010
David Colfax
Cycle Sports of Salem, Inc.
4764 Portland Rd. Ne.
Salem, OR 97305
RE: Notice of Payment Default and Demand for Cure
Dear Mr. Colfax:
Irvine. CA 92614
USA
Reference Is made to the following agreements by and between Cycle Sports of Salem, Inc. ("Dealer") imd GE
Commercial Distribution Finance Corporatlon("Lender"): the Inventory Security Agreement(s) dated December 6,
2000; and all amendments, program letters, agreements and other documents executed in connection therewith
(collectively, the "Agreement"). Any guarantor of D e a l e ~ s obligations under the Agreement Is hereby notified of the
matters contained herein and any demand made upon Dealer hereunder Is likewise made upon any such guarantor.
This letter ONLY relates to Dealer's Marine, BRP, Yamaha Motorsports, and Powersports credit facility(les)
provided by Lender.
Lender hereby notifies you that Dealer failed to make payment of $243,756.26 in default of the Agreement. As a
result, Dealer's credit facility has been suspended.
In the event that Lender does not receive payment of $243,756.26 within l! days of the date of this letter, Lender at
Its option may exercise all rights and remedies available to It under the Agreement and applicable law, Including but
not limited to the right to declare the entire unpaid principal balance and all accrued and unpaid Interest and/or other
charges thereon Immediately due and payable and to repossess the collateral. Dealer is additionally liable for
expenses and costs (Including but not limited to reasonable attorneys' fees) Incurred by Lender In connection with
the collection of this amount, as well as for any ongoing Interest and/or other charges accruing after the date hereof.
By copy of this letter, I am Informing the guarantor(s) of this default and of their personal guaranty of this obligation,
which gives rise to their personal obligation to pay this sum plus all costs and expenses, Including reasonable
attorneys' fees.
Lender expects Dealer to strictly adhere to the provisions of the Agreement and to perform Its obligations there
under accordingly. By any forbearance In exercising Its rights against Dealer, Lender does not and has not waived
Its right to pursue any and all remedies available to Lender. Any delay or forbearance by Lender In the exercise of
Its rights shall not operate as a waiver of those rights. Lender reserves Its rights to exercise such remedies as
Lender deems necessary to protect its Interests.
We look forward to your prompt payment, If you have any questions regarding the content of this notice, please
contact Matthew Kruger at 949-225-2005.
Sincerely,
GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION
co:
Mary Katharine Colfax, 2069 Flagstone Court NE, Keizer, OR 97303
Capital Northwest, Inc., 5103 Portland Road NE, Salem, OR 97303
David & Kathy Colfax, 2069 Flagstone Court NE, Keizer, OR 97303
HD (07/10)
EXHIBIT 5
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 33 of 35 Page ID#: 33
July 19, 2010
David Colfax
Cycle Sports of Salem, Inc.
4764 PORTLAND RD NE
Salem, OR 97305
EXHIBIT 6
(Acceleration & Termination Letter)
GE Capital
Commercial Olstributlon Finance
4 Pork Ploza Suite 2060
Irvine, CA 92614
USA
RE: Notice of Acceleration and Termination after Failure to Cure
Dear Mr. Colfax:
Reference Is made to Ihe following agreement(s) by and between Cycle Sports of Salem, Inc. ("Dealer") and GE
Commercial Distribution Finance Corporation ("Lender"): the Invenlory Security Agreement(s) dated; and all
agreements and other documents (collectively the "Agreement"). Any guarantor of Dealer's obligations under the
Agreement Is hereby notilied 01 the matters contained herein and any demand made upon Dealer hereunder Is
likewise made upon any such guarantor.
This letter ONLY relates to Dealer's Yamaha Motorsports, Marine, BRP and Powersports credit facilityfies}
provided by Lender.
Lender notified Dealer by letter dated July 15, 2010 of Dealer's default and of Lender's intent to accelerate the
payment of all debt owed to Lender If Dealer did not cure the default. Dealer has failed to cure the default.
Therefore, Dealer has forced Lender to terminate Dealer's credit facility and hereby demands payment from
Dealer. in the amount of $3,217,969.49. This sum may be increased by any repossession costs, any Interest
charges from the last billing date until this sum Is paid In full, and any other costs or expenses for which Dealer
Is liable, Including reasonable attorneys' fees.
By copy of this letter I am Informing the guarantor(s) of the acceleration of Dealer's debt and hereby make
demand pursuant to their guaranty(les) of this obligation which gives rise to their personal obligation to pay this
sum plus all costs and expenses, Including attorneys' fees. Any delay or forbearance by Lender In the exercise
of Its rights as a result of this default will not operate as a waiver of those rights. Lender reserves Its right to
exercise such remedies as Lender deems necessary to protect Its Interests.
Lender anticipates Dealer's full cooperation in this matter. If you have any questions regarding the content of this
notice, please contact Matthew Kruger at 949-225-2005.
Sincerely,
GE COMMERCIAL DISTRIBUTION FINANCE CORPORATION
cc:
Mary Katharine Colfax, 2069 Flagstone Court NE, Keizer, OR 97303
David & Kathy Colfax, 2069 Flagstone Court NE, Keizer, OR 97303
Capital Northwest, Inc., 5103 Portland Road NE, Salem, OR 97303
NOTICE: The Federal Equal Credit OppoJ1unlty Act prohIbits creditors from dlscrfmlnatlng against credll applicants on the basis of racB,
color, reOglon. nallonal origin, sex, marital slatus, age (provided the applicant has the capaclly to enter Inlo a binding contract); because all
or part of the applicants' Income derives from any publlo assistance programj or because the applicant In good faith exercised any right
under the Consumer Credit ProteaUon Act. The faderal agency that admInIsters compliance wUh this law concerning thIs creditor Is The
Federal Trade Commission, Equal CradU Opportunlly, Washington, D.C. 20580.
HD (07/10)
EXHIBIT 6
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 34 of 35 Page ID#: 34
EXHIBIT 7
(Dem&nd for Collateral)
July 20, 2010
Via .FaCllimiltl, FIrst-Class and Certined Mall
David Colfax .
Cycle SpOr18 of S91em, Ino.
4764 PORTLAND RD NE
Oregon 97305
GE Capital
4 Pork PI.,N. Suite 2060
Irvine, CA 92614
USA
1>1800 992 6/4/
r .1949 47j 1BJ6
Re, DEMAND FOR IMMEDIATE RECOVJ:!RY OF SECURED COLLATERAL
Inventory Seourity Agreement dated December 6, 2000, and 911 related documents ('Security Dooumenta:)
Cycle Sports of Salem, Inc. ("Dealer") .
Oear Mr. Colfax:
As you are aware based on previous correspondence, COF has terminated Deale(s credit faCility,
accelerated the Deal.r'8 debl due and owing under !he Security DOC\lments and made demand for all
payments due and owing under the Seourlty Documents and releled guaranties. Furthermore, In our
prevloUi dlscussloMS, we have expressed CDF's ImmBdlate need to pick up CDF's collatel'lll secured
under the Security Documents (collectively, the "Collalaral"). While these discussions have been verb.I,
Dealer twa refused to voluntarily surrender the Collateral,
Accordingly demand herebV Is made for f,,11 and Immediate reCCnier,t 0' gil mmalnlng Collateral I"
Deale"rla poseess'on .
So you 91'11 aware, aftef said recovery of the Including all costs and charges associated wltlllhe .
. recovery of the remaining COllateral, Dealer and all gusmntors will remain liable for any defiCiency balance
dUB and owIng on the Security Documents and gusrsnties.
Nothing contained herein shalt constitute an election of I'IImedles or waiver or limitation Q/ CDF's rights,
InCluding the rlghtta lake any aellon with respectto any CoIlaleral.ecuring your UalJlIllles to CDF, as may
be permitted by the documents relating to the Security DocumenUi, the guaranties and/or applicable law.
Your prompt QIten)lon to the demand conlalned kl Ihi8 letter Is appreciated. You can direct your questions.
regarding CDF's piCk up Of the Collateral to the undeJlllgned at 949-225-2005,
Sklcerely,
GE COMMERCIAL DISTRIBUTION FINANCe CORPORATION
> . M.H ger ..........
Acco t ag<u
cc! Mary K4lharine 2069 Fla(/8toile court NE, Keizer, OR 97303
David & Kathy Colfax, 2069 FIaQstone Court NE, Keizer, OR 97303
Capital Northwest, Inc, 5103 Portland Road NE, Salem 97303

EXHIBIT 7
Case 6:10-cv-06214-AA Document 1 Filed 07/21/10 Page 35 of 35 Page ID#: 35