- 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