- 4 - Mr. Zimmerman executed a document entitled “Unlimited Guarantee”, dated May 29, 1996, pursuant to which he guaranteed petitioner’s indebtedness to Amoco. Mr. Zimmerman did not receive any compensation or other consideration from petitioner in connection with the “Unlimited Guarantee”. Petitioner and Amoco executed a rider to the dealer supply agreement dated June 5, 1996. The rider contained additional matters not contained in the supply agreement, including an option (in favor of petitioner) to renew the initial 5-year term for two successive 5-year periods. Amoco agreed to provide petitioner with certain equipment and improvements, as well as a cash payment of $175,000 characterized as a “loan”. Amoco sent the $175,000 to petitioner on or about June 18, 1996. Mr. Zimmerman executed a promissory note dated July 1, 1996, evidencing petitioner’s obligation to repay the $175,000.2 The promissory note provided for the repayment of $175,000 over 10 years in annual installments of $17,500 plus interest at the rate of 6 percent per annum. The first installment was due June 30, 2The note states that “the undersigned (‘Borrower’) promises to pay to AMOCO OIL COMPANY, a Maryland corporation (‘Lender’ or ‘Amoco’)”. Although the note does not specify that Mr. Zimmerman signed the note in his capacity as petitioner’s president, the note clarifies that the note was entered into pursuant to the terms of the dealer supply agreement and the rider between Lender and Borrower. Thus, we are satisfied that petitioner was the promisor under the note.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011