Cycle Sports Kawasaki Complaint

8/3/2019 Cycle Sports Kawasaki Complaint

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Loren D. Podwill, OSB #843241E-Mail: [email protected] F. Deatherage, OSB #982095E-Mail: [email protected] HOUSER BAILEY PC888 SW Fifth Avenue, Suite 300Portland, Oregon 97204-2089Telephone: 503.228.6351Facsimile: 503.295.0915Attorneys for PlaintiffKawasaki Motors FinanceComoration

UNITED STATES DISTRICT COURTDISTRICT OF OREGONEUGENE DIVISION

KAWASAKI MOTORS FINANCECORPORATION, a Delaware corporation,Plaintiff,

v.CYCLE SPORTS OF SALEM, INC., anOregon corporation; DAVID COLFAX, anindividual; and JUNE COLFAX, anindividual;,

Defendants.

c G V ~ - 6221 .le... . ,,"COMPLAINTClaim and Delivery, Injunction, Breach ofContract, and Breach ofGuaranty(28 U.S.C. 1332)

I. PARTIES1. PlaintiffKawasaki Motors Finance Corporation ("KMFC") is a Delaware

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2. Defendant Cycle Sports of Salem, Inc. is an Oregon corporation, with itsprincipal place ofbusiness in Salem, Oregon. Cycle Sports is a citizen ofOregon, and isengaged in.the business of selling "powersport" recreational equipment made by a number ofmanufacturers, including Kawasaki Motors Corp., USA.

3. Based on information and belief, defendant David Colfax is an individual who_.-is a citizen ofOregon. Mr. Colfax is an officer and/or director ofCycle Sports and a-----personal guarantor ofCycle Sports' obligations under the Financing and Security Agreement(the "Security Agreement") between KMFC and Cycle Sports as alleged below.

4. Based on information and belief, defendant June Colfax is an individual whois a citizen ofOregon. Ms. Colfax is an officer and/or director ofCycle Sports and apersonal guarantor ofCycle Sports' obligations under the Security Agreement.

ll . JURISDICTION5. Jurisdiction is proper in this Court based on 28 U.S.C. 1332 in that there is

diversity of citizenship and the amount in controversy exceeds $75,000, exclusive of costsand interest.

llI. VENUE6. The events and omissions giving rise to the claims alleged in this action

occurred in this judicial district. Venue in this Court is therefore proper pursuant to 28U.S.c. 1391(a).



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or on behalfofCycle Sports by KMFC. This commercial financing arrangement iscommonly referred to as "inventory floor financing" or "floor financing." A copy of theSecurityAgreement is attached as Exhibit 1 and is incorporated by this reference.

8. In Paragraph 6 of the Security Agreement, Cycle Sports agreed, among otherthings, to "pay to KMFC all amounts owing to KMFC with respect to each item of[inventory financed by KMFC] upon [Cycle Sports'] sale or other disposition of suchinventory or at such other time as KMFC may prescribe in writing from time to time," to"promptly pay to KMFC, when first due, all indebtedness, and shall perform all of its otherobligations under [the SecurityAgreement,]" and to not sell or otherwise dispose of theinventory financed by KMFC except in the normal course ofCycle Sports' business.

9. According to paragraph 10 of the Security Agreement, Cycle Sports is indefault if it, among other things, fails to pay amounts owing to KMFC when due or toperform any of its other contractual obligations to KMFC.

10. Pursuant to the SecurityAgreement, KMFC holds a duly perfected securityinterest in certain property. A copy of the filed financing statements perfecting KMFC'ssecurity interest are attached as Exhibit 2 and incorporated by reference. The inventoryfinanced by KMFC is in the possession, custody, and control of Cycle Sports.

11. The property in which KMFC has a perfected security interest includes all"inventory, equipment, or goods financed by KMFC, whether now owned or later acquired



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furniture, fixtures, vehicles, accounts receivable, notes, chattel paper, rebates, incentivepayments, contracts, and all other rights to payment and general intangibles, whether nowowned or later acquired by [Cycle Sports], together with all improvements, replacements, oradditions thereto, and the proceeds from the sale or disposition of any of the above (includinginsurance premiums and insurance payments to [Cycle Sports]), wherever the same may belocated. Upon information and belief, KMFC's collateral currently in possession ofCycleSports includes, but is not limited to, the inventory described in Exhibit 4, attached andincorporated by this reference.

12. Paragraph 12 ofthe Security Agreement permits KMFC or its designee toconduct floor audits. Floor audits conducted byKMFC's designee at Cycle Sports' tworetail locations (in Salem and Eugene) revealed that Cycle Sports has sold inventory financedby KMFC without payment being remitted to KMFC for the sold inventory. As such, it wasdetermined that Cycle Sports has "sold out of trust" inventory financed by KMFC in theamount of at least $152,781 at the Salem location and $390,202 at the Eugene location.

13. On July 15,2010, KMFC sent a letter to Cycle Sports that notified it of thisbreach, and instructed Cycle Sports to "not sell, conceal, rent, lease, remove from thedealership, contract for sale, transfer, or otherwise dispose of any additional inventory thathas been financed by KMFC until such time as KMFC directs the dealership that it is able tostart selling the product again." Despite this "cease and desist" notification, and based on



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14. After learning that Cycle Sports had sold out of trust (as alleged above),KMFC made demand on Cycle Sports to allow its representatives to pick up the remaininginventory financed by KMFC, totaling at least $1,735,095. Cycle Sports refused andcontinues to refuse to allow KMFC to take possession of the inventory financed by KMFC.

v. CLAIMS FOR RELIEF(First Claim for Relief-elaim and Delivery)

15. KMFC realleges the preceding allegations.16. Cycle Sports has defaulted under the SecurityAgreement as stated more fully

below.17. As a result ofCycle Sports' breach, KMFC has declared the entire balance of

Cycle Sports' obligations to KMFC as immediately due and payable, together with allaccrued and accruing interest. KMFC has determined to repossess its collateral and isentitled to have Cycle Sports assemble and prepare such collateral for removal.

18. As provided for in the SecurityAgreement, KMFC has demanded theimmediate possession of its collateral, and Cycle Sports has failed and refused to allowKMFC to obtain possession of the same. KMFC is entitled to immediate possession of itscollateral. Cycle Sports is in possession of the collateral inMarion County, Oregon andLane County, Oregon, and continues to withhold possession from KMFC.

19. The SecurityAgreement provides that Cycle Sports must pay KMFC's court


il d / / f


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20. KMFC has no adequate remedy at law and will be irreparably harmed ifCycleSports is allowed to retain possession ofKMFC's collateral. KMFC therefore seeks an orderthat awards it immediate possession of all collateral, including all inventory financed byKMFC, for which KMFC has a perfected security interest and which is in Cycle Sports'custody or control.

(Second Claim for Relief-Injunction)21. KMFC realleges the preceding allegations.22. KMFC requests the following injunctive relief First, KMFC requests an

injunction that prevents Cycle Sports from selling any ofKMFC's collateral. Second,KMFC requests an injunction that allows KMFC to enter Cycle Sports' property and takepossession ofKMFC's collateral.

23. Without the requested injunctive relief, KMFC will suffer irreparable loss andinjury. KMFC has no adequate remedy at law.

(fhird Claim for Relief-Breach ofContract)24. KMFC realleges the preceding allegations.25. As alleged above, KMFC provided inventory financing to or on behalfof

Cycle Sports for the purchase of powersport recreational equipment held for the purpose ofsale to members of the general public. Pursuant to the Security Agreement, Cycle Sportsagreed to pay KMFC principal amounts, together with charges that might accrue from time


C 6 10 06221 TC D t 2 Fil d 07/23/10 P 7 f 50 P ID# 9


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26. At all relevant times, Cycle Sports knew that it was under a legal obligation toproperly pay the amounts due and owing under the Security Agreement. Nevertheless, CycleSports has defaulted on its obligations owed to KMFC in one or more of the following ways:

(a) Failure to pay advances and money made to finance the acquisition ofunits ofinventory immediately upon sale of suchunits of inventory (as of July 15,2010, total amountsold out of trust is $542,983);

(b) Failure to receive and hold in trust for KMFC all sums received from the saleof inventory;

(c) Failure to pay immediately advances and money made to finance theacquisition ofunits of inventory sold, upon request ofKMFC;

(d) Inability and failure to make payments as they became due;(e) Failure to pay finance charges incurring in the fonn of interest and

curtailments;(f) Failure to makemonthly payments on the curtailment debt owed as promised;

and(g) Impairment and/or decline of the value of the collateral securing Cycle Sports'

obligations to the extent that KMFC detennined that advances made for the acquisition ofinventory were and are inadequately secured and protected.

27. In breach of the Security Agreement, Cycle Sports has failed and refused to


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28. KMFC has performed all conditions and covenants of the Security Agreementexcept those conditions and covenants which have been waived or excused. Cycle Sportshas refused, and continues to refuse to pay to KMFC the total indebtedness arising under theSecurity Agreement.

29. The Security Agreement provides for reasonable attorney's fees, expenses, andcosts incurred by KMFC in enforcing the provisions of the Security Agreement.

30. As a direct and proximate cause ofthe breaches alleged above, KMFC hasbeen damaged in an amount to be proven at trial, but not less than $2,290,214.12, togetherwith prejudgment interest.

(Fourth Claim for Relief-Guaranty)31. KMFC realleges the preceding allegations.32. As part ofKMFC's consideration for the Security Agreement, in August 1988

David and June Colfax each executed and delivered to KMFC a Guaranty in order to induceKMFC to extend credit to Cycle Sports for the purchase of inventory. Pursuant to eachGuaranty, David and June Colfax guaranteed the full and prompt payment to KMFC of allobligations and indebtedness ofCycle Sports. A copy of each Guaranty is attached asExhibit 4, and is incorporated by this reference.

33. Pursuant to each Guaranty, guarantors David and June Colfax are responsibleto pay any and all obligations incurred by Cycle Sports in connection with the Security




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35. As a direct and proximate cause ofCycle Sports' default alleged above,KMFC is entitled to recover from guarantors David and June Colfax any and all obligationsincurred by Cycle Sports in connection with the Security Agreement, plus prejudgmentinterest.

36. Additionally, Exhibit 4 provides that guarantors David and June Colfax areobligated to pay to KMFC "[a]ll payments, advances, charges, costs, and expenses, includingreasonable attorneys' fees, made or incurred by KMFC in exercising any right, power, orremedy conferred by this Guaranty[.]" KMFC therefore seeks an award of its costs andexpenses incurred to enforce each Guaranty.

VI. PRAYERFOR RELIEFWherefore, KMFC prays for judgment as follows:1. On KMFC's First Claim for Relief:(a) That judgment be entered in KMFC's favor and against Cycle Sports for

possession of the collateral described in Exhibit 3;(b) That Cycle Sports be directed to deliver KMFC's collateral to KMFC at a time

and place established by the Court;

(c) Awarding KMFC its reasonable costs and expenses in removing andtransportingKMFC's collateral from Cycle Sports' premises;

(d) Awarding KMFC its reasonable attorneys fees in enforcing the Security




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2. On KMFC's Second Claim for Relief:(a) For the Court 's decree, enjoining Cycle Sports from selling any ofKMFC's

collateral and permitting KMFC to enter Cycle Sports' property and take possession ofKMFC's collateral;

(b) Awarding KMFC its reasonable costs and expenses in removing andtransporting KMFC's collateral from Cycle Sports' premises;

(c) Awarding KMFC its reasonable attorneys fees in enforcing the SecurityAgreement and bringing this action; and

(d) For such further reliefas the Court deems just and proper.3. On KMFC's Third Claim for Relief:(a) In the event that delivery cannot be had, that judgment be entered in favor of

KMFC and against Cycle Sports in an amount to be proven at trial but at least $2,290,214.12,with prejudgment interest;

(b) For deficiencies from the sale ofthe re-possessed inventory in an amount to beproven at trial;

(c) For KMFC's incidental damages;(d) For KMFC's reasonable attorney's fees, costs, and disbursements;(e) For any remedies available under the Uniform Commercial Code; and,(f) For such further reliefas the Court deems just and proper.




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(c) For such further relief as the Court deems just and proper.DATED: July 23,2010

12697551.1




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'.

-'KAWASAKI MOTORS FINANCE CORPORATIONFINANCING AND SECURITY AGREEMENT

THIS FINANCING AND SECURITY AGREEMENT ("Agreementj IS made pursuant to ArtIcle 4 of the CaliforniaCommercial Finance Lenders Law, by and between KAWPSA'r


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2(c) "Amount Due" means the amount listed In the MonthlyStatement whIch Dealer must pay by the Due Date

'


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--



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4(0 The occurrence of any Event of Default as defined In this Agreement or the other Required Documents,(Ii) TIle occurrence of any event of default under any agreements Dealer has with any other lender orfinancier of Dealer;(ul) Each change In the lOeallon of the dealership. each Inventory storage faCIlity, principal officB.ormailingaddress of Dealer;

[1'1) Each change In the name or typeof bUSIness entity of Dealer, and.(v) Any and all finanCing Dealerobtains from any source other than KMFC.8. POWERS OFKMFC.Dealer hereby appomts KMFC as Dealers true attorneY-in-fact to perform any of the follOWing powers, whIch arecoupledWIth an Interest, are Irrevocable until repaymentof all Indebtedness and may be exercISed from tIme to time byKMFC's officers, agents, or employees, whether or not Dealer IS In default .(a) Perform any obligation of Dealer hereunder, In Dealer's name or otherwise,

(b) Give notice to thIrd parties of KMFC's nghts under thIS Agreement ,n and to the Collateral, to enforce thesame, and make extension agreementsWIth respect thereto,(c) Release persons hable on proceeds from any Collateral and to gIVe receipts and acquittances andcompromISe disputes In connection therewith: .(d) Release securrty,(9) Resort to sacunty In any order,(1) Prepare, exeCute, file, record or deliver notes, assignments, schedules, deSignation statements, finanCingstatements, continuation statements. termination statements. statements of assignment, applrcatJOns for regIstratIOn orlike p a p ~ r s to perfect, preserve or release KMFC's Interest In any of the Collateral,(g) Take cash, mstruments for the payment of money and other property to which KMFC IS entltled,(h) Verltf facts concerning the Collateral by mquny of obligors thereon, or otherwise, In Its own name or afictItIOUS nam e;(i) Endorse, collect, deliver and receIVe payment under Instruments for the payment of money constltutmg orrelating to proceeds from any of the Collateral, .ill Prepare, adlust. execute, deliver and receive paymentunder Insurance claims, and KMFC may collect andreceIVe payment ofand endorse any Instrument In payment or loss or retumed premiums or anyother Insurance refundreturn, and KMFC may apply such amounts receIVed by KMFC, at KMFC's sole option, toward repayment of the.ldebtedness or replacement of the Collateral,.(k) ExerolSe a1lnghts, powers and remedies that Dealerwould have, but for thIS Agreement. to any and all of

the Collateral SUbf9Ct to thIS Agreement, and .{ Do all aets and things and execute all documents In the narne of Dealeror otherwise deemed by KMFC asnecessary, proper or conveOlent to preserve, perfect or enforce KMFC's nghts under thiS Agreement. 9. POSSESSION AND SALEOF INVENTORY.Dealer's posseSSIon of the Inventory shall be for the sale purpose of stonng and exhlbltmg the same for sale En theordinarycourse of Dealer's buSiness Exceptasmay be necessary to remove or transport the samefrom afreight depotto the Dealer's place of bUSIness or In the ordinary course of sale, Dealershall notuse or operate, or permIt the use oroperation of, any Item of Inventory for hire orothelWlsewithout KMFC's pnor wntten consent In each case, and Dealershall not In any event use any Item of Invent0IY Illegallyor Improperly.

10. EVENTS OF DEFAULT.Without limiting the nghts or remedies ofKMFC otherwISe at law, each of the fonowlng shall constitute an "Event ofDefault" under thiS Agreement'(a) Dealer's fatlure to pay any of the Indebtedness when due or failure to perform any obligations of Dealerhereunder, under any of the otherReqUired Documents or otherwise,(b) Deler's failure to perform any covenant, condition, or term contained or Incorporated In thIS Agreement or



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(f) Inability of Dealer to pay ItS or his debts as they mature, Insolvency, appointment of a receIVer forDealer,commencement of any proceeding under any bankruptcy or Insolvency law by or against Dealer; or any order ofattachment, executIOn, sequestration or other order In the nature of awnt IS leVied on any Item of Inventory, or(g) DISSOlution, merger or consolidation, or transfer of any substantial part of the property of Dealer If DealerIS or becomes a corporation or a partnership.11. REMEDIES.

Whenever an Event of D e f ~ u l t shall occur, or at am j time thereafter (unless the default has been waIVed by KMFCor cured by Dealer). KMFO, at Its option and without demand or notice of any kllld, may(I) declareall Indebtedness to be Immediately due and payable,(Iij reposses$ all Inventory and any other Collateral, and(nij take all other steps to collect the Indebtedness as allowed under the ReqUired Documents or ooder allapplicable state and federal law Including by way ofa publIC or private sale of repossessed Inventory orother Collateral. Dealer shall pay all costs (Including attomeys' fees and expenses) KMFC Incurs InenforcingKMFO'snghts under thiS Agreement and underany otherReqUIred Document, including thosecosts and expensesKMFC Incurs In enforcmg Its nghts as asecured creditor In bankruptcy proceedmgs

12. FLOOR AUDITS.Dealer hereby authonzes KMFC and Its designee or audrtor from tIme to time and at all reasonable times dunngDealer's regular bUSIness hOtJrs, WIthout prIor notIce to Dealer, to examine, appraise and venfy the eXIstence andconditIOn of the Inventory, and all documents, commerCIal or otherpaper and other property In which KMFC has or hashad any tltle, trtJa relentJon, lien, security or other Interest

13. MISCEUANEOUS.(a) Waivers, Etc, Dealer hereby waIVes presentment, protest. notICe of protest, notIce of dIShonor or nOUce ofnonpayment With respeettoKMFC's demandforDeaJerto pay the I n d e b t e d ~ s s . and DealerfurtherwaIVes any defensearlsmg by reason of any disability or other defense of any other person or by reason of the cassation from any causewhatsoever ofthe liability ofany otherperson to KMFC. Dealeralsowaivesanynghtto direct the applicationof paymentsor secunty for any of the Indebtedness. KMFC may apply any payment or the proceeds of any secunty to theIndebtedness In any order, pnonty or manner KMFC deSires(b) No Third EarlY Benefjclanes. AssIgnment ThIS Agreement IS made and entered Into for the sole protectionand benefit of the paroes hereto, and no other person or entrty shall be a direct or IndIrect benefiCiary of, or have anydirect or IndIrect cause of action or c181m, In conneetlon with thiS Agreement or the other ReqUIred Documents KMFCmay assIgn rts nghts under thIS Agreement and the other ReqUired Documents .(e) No Course of Conduct. /oJ. no time shall Dealer's or KMFC's prtor or subsequent course of conduct limit,Impair or otherwise adversely affect any of KMFC's nghtsor remedies In connectIOn With this.Agreement arthe otherReqUired Documents, or detract from or otherwISe affect the literal InterpretatIon and effect of thiS Agreement or theotherReqUired Documents, Since the parties heretoagree that thiS Agreement and the other ReqUired Documents shallonly be amended by written Instruments executed by the parties, as provIded hereIn. (d) No Offset. Dealer shall not under any CIrcumstances fall or delay to perform (or resIst the enforcemem of)any ofDealer'sobligationsto KMFC In connection WIth thIS Agreementor any of the other ReqUired Documentsbecause

of any alleged offsetting claim or cause of action against KMFC (or any rndebtedness or obligation of KMFC) that hasnot been confirmed to a final Judgment of a court of competentJUriSdiction (sustained on appeal, If any) against KMFC,and Dealerhereby waIVes any such nght ofsetoff (or offset) that ItmIght othelWlS8 have with respect to any such claims .orcausesofaction against KMFCor any such obbgatlOlls or Indebtedness of KMFC, unless and until such nghtof setoff(or offset) IS confinned and liqUIdated by such a final JUdgment.. (e) Accm>tancQ. CahfomlaLawGoverns. This Agreement shall be made when KMFC accepts It at KMFC'sprincipal placeof bUSiness InOallforma ThIsAgreement,lncludlngKMFC'sdutyto adhere to theusury lawsof California,



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6respect, such unenforceablllty shall not affect any other provISIon hereof, and this Agreement and the other ReqUIredDocuments shall be construed as If such unenforceable provIsion .had not been contamed herem(h) Enforcement, If KMFC or Dealer shall bnng or partICipate rn any successful legal action or proceeding toenforce, defend or construe any pfOVlSfon of thiS Agreement, then theprevailing partyshall recover from the other party(or partIes) to such action or proceeding all reasonable legal expenses and costs (mcludlng attorneys' fees) that ItmayIncur 10 connection with such action or proceeding

(I) Amendments. This Agreement contains (or Incorporates) the entire agreement of the parties hereto WIthrespect to the matters discussed herein. and thiS Agreement may only bemodified or amended by a wntten Instrumentexecuted by each of the parties hereto.(j) I n d u ~ e o c e Not Waoter. No rallure to exercise and no deJay In exercISing any right. power or pnVllegehereunder on the part of KMFC shall operate as a waiver thereof, nor shall any Single or partial exercIse of any nght,power or prNlJege hereunder preclude any otheror further exercise thereof or the exercIse of any other nght, power orpnvllege No waiver shall affect any default or Event of Default other than the default or Event of Default specified Inthe waIVer, and such a waIVer shall be operatlve only for the tIme and to the extent stated therein(k) ProhlbltlQn ofOral Consents, In every mstancewhere thIS Agreement reqUires the consent of KMFC to anact or omiSSion of Dealer orto the existence of some fact, Circumstance or event, KMFC shall only be deemed to havegIVen Its consent when a duly authonzed o ~ e r of KMFC expresses consent rn a wntten notIce to Dealer as. prOVidedIn thIS Agreement, and no oral consent of any kind, nalure or character shall be effectIVe for any purpose whatsoever.

(Q Suooyal Q1..Warranties All representations, warranties, covenants and agreements of Dealer cont


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(p) Assets 10 Trust. To the extent Dealer falls to pay any proceeds from the sale of any Inventory Immoolatelyupon receIpt to KMFC, Dealer agrees to hold all such proceeds 10 trust for KMFC's benefrt untIl complete payment ofall Indebtedness.(q) Signature byDealer. ThIS Agreement shall be executed on behalf of Dealer by the owner In case of a soleproprietolShlp, by a general partner 111 case of a partnershIp, or by a duly authonted officer In case o f a corporation,shOWIng position or title of person signing.

INWITNESS WHEREOF, the parties have executed thiS Agreement the day and year hereinafterwritten.

KAWftSAKJ MOTORS FINANCE CORPORATION9950 Jerorllmo Road )Irvine, California 92718-2016-

p o s l t l o n r r r t I a l - \ - . . L A M t . 4 ~ ~ ~ +_DATED__ - - ! - r _ - ~ , + . . q - = - - - _ - t _ ? DATEDDealer IS __an mdlViduai

""y::""'a COrporation_ a partnership

Kawasakl Dealer Number _ - . . . : : G ~ o . . ! : : . - ' \ . . . l - 4 . ! . . - _



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UCC-3 STATE OF OREGONCorporation Division - UCC255 Capitol Street NE, Suite 151Salem. OR 97310..1327(503) 986-2200 Facsimile (503) 373-1156

PI..IASI: !MiND 10 Am ADDlnOlW.DDmR(S) ADDRESS 1'0 READ:555 RIiP. ROADEOGEKI, OR 97401

PLEAR AMKIID DDl'OIt(S) m COOll'ROHl 97303 1'01 97305l 'LUSI AMK!ID 1'0 ADD DD1'OR(S) DBA:w l i to READ:DBA/CYCLE SPORIS EUG!K&

STATEMENT OF TERMINATION, CONTINUATION, ASSIGNMENT, RELEASE, AMENDMENTPLEASE TYPEORWRITE lEGIBtY. READ INSTRUCTIONS BEFORE FILLINGOUTFORM.

Thl. Financing Stst.mWlt Ia p....nfed Ia riling ofllc:erP"'R""'f to the Unlfonn ComnMIrc:lal Cod. . Th18 IInlU1Clng ~ m e n t remaIns .rt.c:tIve fo r period of IIv.y..... from the datil of.mlng, unl, ,xtendad fOf' additional period. U prGVlded for by ORS Chapter71.A arbon, photographic:, or other reproductlon of tills'onn, Ilnanc:11llI atsfec!lent,or .ecurlty avn-nt may be riled . . . nnanc:!nG .tsta....nt un4erOM CJ1ap. . . .71.A. THIS STAn:MENTREFERS TO ORIGINAL FINANCING STATEMENT G. AMENDMENT INFORMATIONNo.: M87068 Date Rled: 9/U/88 Use this area to list conateral to be"":":=-================:""'::=:"':"':=':"":=======-1 Released, Amendment description.B. TYPE QF. AMENDMENT and other Information.o TERMINATION (NO FEE). The Secured Party certifies that they no longerclaiminterest under the financing statement bearing the file number shown in SECTION A.D CONTINUATION. Submitted within sixmonths prior to expiration date.D ASSIGNMENT. The Secured Party assigns to the Assignee whose name andaddress is shown in SECTION E and bearing the file number shown In SECTION A.

Choose one: 0 Full Assignment 0 Partial Assignmento RELEASE. RELEASE DOES NOTTERMINATE DEBT. From the collateraldescribed in the financing statement bearing the file number sbown in SECTION A,the SecuredParty releases the following: (descnbe in SECTION G)Choo. .. one: 0 Release of all Collateral D Partial ReleaseAMENDMENT. Financing statementbearing file number shown in SEcnON A isamended as described in SECTION G. Signature of Debtor required Inmostcas.

C. DEBTOR NAME(S)1. C'!CLI SPORIS OF SAI.D!, lliIC.2. _3. _DEBTORMAIUNGADDRESS:51.01 1'Om.A.ND RE~ OR '1303D. SECURED PARTYlIESl NAME ANDADDRESSU'll.lSUI KlmJtS: "nfWiCE. CORPORAnORP. o. BOX 25301SAHU AHA, C.l 92799-5301Contact Name: J"AHlU nlKAGlI Phone No.: (949) 831-4683E. ASSIGNEE NAMEAND ADDRESS (I fany)

Contact Name: PhoneNo.:F. : : N A T U R E ~ . I a ~ O r d ~ c e . W i ~ ~ ~ Chapter 79, ALL SECllBE;By:. &;::i~ g u ( t e - ~ ' F1r:9ll: .,/

DOOtSXll tiJIbRS r IlWtCi COkPOR11lOri 6"501 SALEK, INC. .'By: By: ,...::;;. _



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UNIFORM COMMERCIAL _JOE STANDARD FORM UCC-3Swtement of continuetion, HSIr .nt,rel.ase, tennlnation, emendmenl, "te.

PLEASE TYPE . I . ..l.BE SURE TO COMPLETE AND SIGNTHOSE pm. illS THATAPPLY. ' i if ' ' lU'O:'lREAD INSTRUCTIONSON BACK BEFORE FILLINl>OUTFORM. CUSTOMER NUMBER / \ f ' . ~ I ' '(/',.'~ . $ . \ a l e l T ) e n t IS presented llling officerpursuantto 1f1e UniforJft Commerclet ~ . '. '7..... . , .. },'.'A. Check (x) one: DEBTOR NAME, 0 CONSIGNEE, 0 LESSEE Social $ec. number or TIN

(From origIMI flll"ll 0< .1 pIeIIloualy .",ended)1. . ~ { c l e ) ~ . ' l I : " t . s , - . ~ . S . ~ l J l , ,L."!c.

. , :

B. Check (x)one: G) SECURED PARTY. 0 CONSIGNOR. 0 LESSOR, NAME AND ADDRESS (from original filing 0 ( as previously amended)

C. ASSIGNEE NAME AND ADDRESS (if any)

3. ---,. __ _(Lasr Naml' (Fitst.liamo) (Mlddls)DEBTORMAILING ADDRESS:3385 ; . a n ~ . . a G 1 : e r Dr.' ~ ' l 1 C ! 1 1 l , ':R 97303

Total D.btor Names:__2 _1\1'\ c.;:"!/} (0 C'i)! ; / 1'''/ " - " '"Re rved for Filing Olliel'Use

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" : e ' . ~ s a k : J . . \ b t c . ~ s "':Ulili1Ce (o:l:pc;4ati.an~ ~ ; i'c'>x ?5301f i l l i l ~ l i m r m M l '12'/9')'::;:101 Teleohone Number. (714}f137-.j6f;J)! ~ 0

o RELEASEo ASSIGNMENTT1lla swtemenl ."t".s to original Financinll Statemenl No .__ _._. :,'(I:lJ}GO. . . . O"t" Filed . ::t':!,;:: ..1. . , 19 ea .o TERMINAnON The Secured Party no longer claims a security Interestunder the financing statementbearing the file number shown above.No Fee is rwquired for f1ftng " termination stetemanL

The Secured Party assigns to the Assigneewhose name andaddress is shown, Secured Party's rights under the financlng statement bearingthe file number shown above in the describedcollareral.o CONTINUATION The original financing statemenl bearing the file number shown above Is still effective.Effective only If submllted within six months prior to expirailon dat".From the collateral described In the financing statement bearing the file number shOwn ebove, Ihe Secured Party releases the following:

(describe pelow). Choose one: _ Release of aU Col laleral _ Part la lRelease RElEASE DOESNOTTERMINATE DEBT(J AMENDMENT Financing 'staremenl bearing fde number shown above Is llITIended as describedbelow: Si li f ta t \l re ot Debtorrequired in mOlt en . . .This area can be used in listing collareralto be Released. Amendmentdescription, and otherinformation:

~ vn ' ? ( ~ T ' f : l:l;1') "-oad ::j.;: ' d l ~ : ~ , n ~ ' :"J r 30]

RECEIVEDAPR 19 19S1. KAWf>.SAYJ MOTORSAIiANCE CORPOAATION

o LAPSE/TERMINATION

Debtor hereby authorizes the Secured P;lrty to file a carbon, photographicor"ther reproduction of this form, financingstatementor security agreement as a IInancingstatement under ORl)Chapte)J9. '" T' . . ". _ .. ' _. _ " . '. l ~ c l . e ..p::,q.s ~ l Lla.l;e'l, IDe. q:r + . ~ a k i , ; . ~ r :l a n ( ~ ~ C ~ r : : : : r = ' . t 1 o : n

By; =1=)(.'),.,. } C ..i I P4t Ih.. '. B ~ - =- J & - k..... . . . . . . ~~ . . d t';. Cqlf.'Jx, 2:p'",Oeot Requ"sdSlgnalur.Cs) .:elan Fo>r, f u : 1 : ! " ~ f ' cmh::;,lFARM PRODUCTS STATEMENTS OFCONTINUATION. AMENDMENT. ASSIGNMENT, LAPSE FORM EFS-3

-n.tkSRM ~ " 5 " l i O M E H t I . ~ ~ i i H , ! 9 ' " ~ ~ ~ ! W n f \ s C l 1 a p 1 w ' i i ~ , ~ . ~ "flR' .',:' . . . . ; t l ~ ' 4 f ! O ; ' : ~ ? ; : ; l" ~ ..... , .. .... , . . . . ".. . _ ~ ~ ~ ~ r ~ . . . , . ;:; .., L ~ ~ ~ ' ~ " ' "This area for use In listing Ferm Product changes. deletions. additions. amendments:

o ASSIGNMENTo CONTINUATIONo AMENDMENT .. ....By: _8y: _

By: _Signature of SSOl,ad Party

Source of PaymentCash 0Check 0 #, _



21/50

ST, OF OREGONUNIFORM COMMERCIAL CODE STANDARD FORMUCC-3Stat.m.nt of continuation....ignm.nt, r. I , tannlnatlon" arqandment, etc. ..,.-

PLEASE TYPE , _, ..' ~ ~ ~ ~ ~ i ~ ~ ~ 6 ~ ~ N A ~ ~ C ~ ~ ~ ~ ~ ; ~ l r ~ ~ ~ l g r : ;~ ~ ~ 1 ~ P P ~ i j S T O M E R NUMBER 'Cl I.. 4>-

" S ~ ( ' .._ . ~ ~ i l ? ~ , . . . q 1 ~ ~ . , : ; ; : ..... , -.... y . " . : \ .A. Ch.d


22/50

U N X F O k ~ COMMERCIAL CODE - S T A N D A P ~ . ~ R M'STA1EMENTS OF C O N T I N U ~ N , PARTIAL RELEASE, ASSZ( lENT, ETC. - FORM UCC-3

.IN:1TlWCTIOIIS'1. PLE.QSE TYPE thu for. . Fold onty a1.ong ~ r f o r a t \ D n fo r . . ,Uing.

Z. IlslIOV1l secured Par ty and Debtor cOP'" ald send otMr 3 copi." with interteaved corbon paper to tho fi l ing officer.3. Enct". . fHing fM(e). end fi t l . in or\.gi""" Financing stot.....nt ruober and dote fited.4. ]f th e spoctJ prOllidad fa r a>y ia-C. ) on the f1lnl is ~ t the {t..CsI should be continued on addtti.onot sheets; preferobtll

5" .. 8" or 8" l( 10 ' . Orlly one copy of such additionat sheets nsed be presented to the fUi.ng officer with a ee t of three copiesof Font UCC-3. Long cchecil1.ee of cDltotaral, etc., be on """l stze poper that u convenient fo r the s.cured party. Indicateth e ner of addit tonot shMu attoched.

5, If cottot,lrat is crops or goodIII which ar e or or . to bee..... fi."tures. describ. generatty t.... reot e"tate and give """'e Df record D_ r .6. At th e t i. . ,o f f i l ing , fHing officer witt ....tum third copy as (I l o d I n o w t e d g e . " " t ~

4. This state__ t r"f.,.. t o od.glna t Fl.noncing Stote.ent bearing Fit" No. 11870611

Thic S T A ~ u presented to a filing officer fo r 'HUng .pursuant to the Unifo.... t_rcial Code: ] 3 .

SOZ44 -10

Date Fil.d 091121198&

Federal 1.0. No. 33-02119604

I:AIIlSRKI 1I0TCRS FIPIlIlCE CllllI'CRllTIONP.O. SOX' Z53QlSJlIITA ANA, ell 92799

, . . ,turi ty dote ( if any): 0 9 / ~ 9 9 3 ~Z. Secured Ptl rtyCtec) and oddr.caCes) For Fiu'ng Officer C D o t . , - T i . I I ~

Filing Office) 0."

Fited with SECIlETARV a: STATE, UCC DEPT.

CYCLE SPmTS CF Sl'LEr!, INC.5103 PCIffi.AN) 1lD. N.E.SALE!I, at 973Q5

SOCiot s ecu r it y o r F.deral. I. D. No. 93-0963091

1. DebtorCc) (LactNaoe First) ond ad



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---------------." {

...... I I I I ~ ! ~ I I J I I I I ~ I IUCC FINANCING STATEMENTAMENDMENTF T !WI_a FUllY' 2 7 9 7 6 ~ 1 1 \ ) ' ) t \ ~ ~04/08/08 02:54 PM \OR Sec. of State 1X

S. SEND ACKNOWlEDGMENTTO; (Hame..,dMdIW4) .

II:AIlASAKI HOTORS fIlW4C CORPORATIONP.O. SOX 25301 .SANTA AHA. tA 92799

ACCr NBR:

.'L1.. INITIA.L AHCIHG STATEMEHTFI lE.1ol87068 09/1Z/J988

[FlRSTNAME

THE ABOvESPACE IS FOR f'lUNG OFFICEUSE0Nt.Y1b, llolsANANCIfG STATEMENT AMENDMENT ioo 10M filocIlIor NCDIdJ lor IKOlllodjllllh.

IUFFIXh . O R G A N 2 A ~ M A M E-OR iJ1>. "'OIVIDU"'L'S ~ S NAME FlRSTNAME IlIOOLEHAME SUFFDl;

7 ~ MAILINGADDRESS crrY STATE IP O S T A l C O O ~ COUIfIRY7et SEE II\I$JB!.JCJJONS 1/lOIn_IIE 17.. lYPEOfOflGANIlAllOH 71, JURISOICTlOIII OF OflGAHllAllON 71, ORGAHlZATIONAlID.,W InrOlItW11ZA'IXM nN()Nl;101011 IB. AMEHDNEKT (COllAlERAlCHAAGEt, r;IIKt onJr .!!!!! bar.D


24/50

1111111111111'001647907 279761012812005 3:45:29 PMOR Sec. of StateUCC FINANCING'STATEMENTAMENDMENTFl'lll

ncr HBR:a. seND ACKNOWLEOOweHTTO: tMa-1IId AcId""I IOOiASAKI IlTDRS FtIWlCE CORPORATIONP.O. BOX 25301SANTA AHA. CA 9Z799

L .J 1HI!AIIOVE ual! ONLY2. i1 Tl!RNlNA.TION: E!IwdhMN or .. .__ .1Iia__ " . . . . . ~ .. 1onn. . .Loi. - .. . - l I r " ' ~ a1 . . ._'; ' _ . til'" T.I1ll.,.....__ I t3.1 CQNTIllUATlOM:EIlM:IMlI_ allM F I a a a a I I o g " " - W.-..cIMow wIIIIlMJIlIOC" - .... "'''ll4culM PMJ _cuImlg 11111 Co>n1IIIuaIIolISIo..-IICDldn.... Ior . . . .d...... .....A.n A88lQNMENT O'oIarpmlloll:GIM ."..aI__ II .....1. 7 bw Uoil. . . . a I _ I t I ~ _ ........ 10; .101..... _ 11...._ III lam .5 . A U E H t l U E H T ( p A R T Y I N F 0 R I M 1 1 O N ) : 1 l l I I ~ l I I I t t l l l o c l 8 l ! J o - b " l ! (nS-r.cI . . . , .oI........ CMct.oe., . . . a1l 1 l M et M I - .I\l1O..kl!!!l oI foIoIwIIol . . . . .-1 I l I I ,.....w. . .,......IIlIactIldolIIIl . . . . .T'.d1oI7.'IXJ ~ - - - __111"_- o-m---- D A D O _ ~ - T a ..no.""--h;. . . . . ." . . . . . . , . . . . , . ." ' . ' .. k ......... " . " . . . ....,.. . . . . ,.'1'.".,.....,... CURREIlT RECORD INFORMAllOlt1RGAHIViTION'8N,t.Me~ C L E SPORTS OF SAL:, INC,OR _ I l 'iO/VplW.. 'SLISTHAME _7 CIWIGED (NEW) OR AOOEO INRlRIIIAllON:rrL ORGAHZ\TlON'8IlAME

CYClE SPORTS OF SAlfM. IIIC.OR rna. INQIVIlUAL'8 I.Wf NAME RRSTNAME lflDOLENAME SUFFIX7e.lo!"llJMlI"I:IDRESS aTY 81'AlE IPOSTALCOOE COUNTRY4764 PORTLAND RD. liE ~ I . ! ~ OR 97305 USA7t1. BEE IN81RI1CIIQtiS IADln.INl'O III 17a. l l P E OF ORGANIZAllON 1l JURISDlCTIOII OF ORClAHlZA,l1OH 7.. 0Rl:ANlZA.11ONAl.D" 1.11)'O-.mllll IlooNE9 3 ~ o g 6 3 0 9 1 1lll.1'Oll I INC OR nR AAQQ288



25/50

IHlllillih007420103O Z t / ~

27976 ~ I 4/28120032:12:05 PM \ " ' /OR Sec. of S t ~ t e

UCC RiANCING STAlEIIENTAMENDMENT''''.HAM! &JIHOIlEOFCONTACTATPU R to....1IIlACCT NBR:

a. SEMDACllNClWLEDGlEKTlO: , . , . .MdMdr-J

I MOTGRS fIlWa ClIRPOAATION'.0. BOX l ! 5 3 ~ 1SAllTA MA. l!A 92799L

1.. IIlIllo\lFWAlICIlOln7ol1ilENJRUiIll L1... l*FlIWf(:lIlaSJA1EIIII!NrAM!N01lEKT1a,. . '..MlI7068, . . . . . 0 9 / U / 1 ~ . . . _ . . . . ... . . - ... -- l O = . m , = ~ ~ l I l " _ '

2. 0 'JOJIMAllOIt ~ o l " . F I o M o I I o I S W o lcIt""_ .._ _ ......... .....,IIIioIMIfq e-4"...,..-.... iIIIo T......._ S. . . . . .""I. IT ' FIMalt ....-ot.......,.........,. . . .s-.I " ' . . . . . . . . . . . .c.. ..-. .a8tl lnell t1l

--.. . . . . . . ..wJIoMI p!!!Wod.,. ."- D _8M!" . . . . . . __ . , . . . , . . . . . . . . . 71It . . . ~ . . . . . . 1ot . . . . 1o; . . _ ....._of--.- ......I . ~ RIk OR8AH1tA..,.,.1WI

CYCLf SPGRTS OF 5o'L!II, INC.011I ! a . _D IAL.. LUT!WE RIl8tIWlli MIDDLl!:NAIIE IUFFIIC!. a4AHGED lIlEWI D/C AllDliD IIfCl11lM,Q101t[1L ORGNIlAlOl'8 NA/IlliiOIl In-lIIDImUAL'8lMTN,\II!; FIROTIWoIE * l I lUi IWiIIi lIUfFIlC

7.. aMIM AIlDRIii88 CITY STAlE IOSTAL CODE! 00lJNTR'(7.. TAXID. 8811OIUiIM I-_ . I r..TYPECll' CACIANltAlIClN n. JURIil'*7l1Clll tS ClRQAIIZAmII . 7 OIlClNlW\1IOIW.1l)1II. hO J DItON&~ = - I

R ~ C e \ " e . ot \ t \ ~ (} UlU{}'J



26/50

Thll flMAHCJHG STATEMENT (s ,rue,,' t fmRg affit., f., 'Ntll. puuvant to (h. Uflit .. ... C.. ...,.,!:; C.d.:- - - ; O : ' ~ o l { d ln i tl.",. Firatl ... et .dcluulesJ 2 Su.r.d Partyr.u' o n . d d , . u ~ . s . )

3 M.1urity .fol. (if I"'YI;f. , Fi.I_. Oflic., {D." TImo. Nlu..b1I r, o il ld Fi'.g OUieo'

eyel. Sports of Salem. Inc.DBA Cyc ls Spo rt s K a w a s a k l ~ Y a m a h a3' ' .ancaster Dr. NES OR 97303THIS IS A CORPORATIOH: SEE EXTE"TIOII SHEETlSIFDR AOOITIlIIIAl HAKES, ADDRESSES AND/OR DllAS.

Kawasaki Motors Finance CorporatiolP.O. Box 2.5301Santa Ana. CA 92799-5301

'': r:,..., ....... __SEE ATTACHED EXTENSION SHEET FORAPPROPRIATE STATEMENT OF COLLATERAL.

ASSIGNE OF SECURED PARTY

o P. . . . .df C.II."fO; . . . ,I o".,.d o P,.d.... ., C.U.'.fOl .. , .100 . ." . . .dKawasaki Motors Finance Corporation

By: ........~ W I w o ~ ....&lt!...~ . ..._......__ ......._._ ....Signeturer.J of Secured PDrlyli1

~ i t h ; _ ~ _ _ _ _ _w.._ _ ~ _ _ __ .. ._._ __ _ _ _ _ .\ Sports of Salem, Inc.~ y c l e Sports Kawasaki-Yamaha

r : i 3 ; ; J Z J F ~ ~ = - ~ - - - I M nS:S:lrI=R_AI PHABETICAL

.;



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1 1 1 1 1 ~ m ~ ~ I I I I I ~ . m ~ U I I ~ 1UNIFORM C O M M E ~ \ . C I A L CODE - FINANCING STATEMl:.. r FORM DCC-l 38429-40

Cycla S P O ~ t 5 of Salem, Inc .DBA Cycle S p o ~ t s Kawasaki-Yamaha3385 Lancaster Or . NESalem, DR 97303 .

..THIS IS A CORPORATION; SEE EXTENT!oN SHEET1S)f ADDITIONAL NAMES, UlDRESSES AND/OR DB S.

Kawasaki Motors Finance CorporatlorP.O. Box 25301Santa Ana, CA 92799-5301

SEE ATTACHED EXTENSION SHEET FOR,APPROPRIATE STATEMENT OF COLLATERAL.ASSIGNE OF SECURED PARTY

0. P " d . ~ S .1 C.n-'.r.1 . , . .Is vorodFil. .d wilh;._ _ _ _ _ _ _;._ .._ _ _ _ _ _ ..

_ ~ : . I S ~ 1 { ' - . ~ ~ _ __ _ .5 ig"alure!.sl 01 S.cu,ad PorIyli eslKawasaki Motors Finance Corporation

By:: X . n . ~ 0...J:; Ca.. l . _.' 7 S j g n " l u ~ ' 1 of D8btorl/FILING OFFICER-ALPHABETICALS TANDARD FOR M - UNIFORM COMMERCIAL CODE .. FORM UCC-I

Cycle Sports or Salem. Inc .DBA Cycle S p o ~ t s Kawasaki-YaMaha



28/50

Kawasaki Motors Finance Corporation.. C G 5

Continuing Guaranty -.-c--..;..-1. Indebtedness Guaranteed. Forvaluabte conSlderatlon, the undersigned DAVID E. COIFAX(the "Guarantor") unconditionally guarantees and promises to pay to'""Kaw-asa---:ki.-:-:"'M':"""ot-:""o-rs--=FI:-nance--..C..rpo--ratJ-=--on........=KMFC"). or Its order, on demand, In lawful money of the United States, anyand altlndebtedness 01 lIeLC S t f ' D t L 7 ~ t . , ~ ~ t l ..: '1', c - ",C - (the Dealer") to KMFC.The word "indebtedness" la I:Jsed herein In ItSmost compreflens1V8 sense ana 1ridUd9S ali adVances, including Interestthereon, debts, obllgatlons, and liabilities 01 Dealer Incurred or created at any time, whether voluntaly or Involuntary,and however arising, whether due or not due, absolute. or contingent. Uquidatad or unliquidated. detenl1lned orundEltenmned, and whether Dealer may be liable indMdually or jointly with others, or whether recovery upon suchIndebtedness may be now, or laterbecome. barred by any statute of limitations, or wheth8f such Indebtedness may be.or tater become otheJWISG unenforceable.2. Statement of Gya@rny. If Dealer falls to pay any Indebtedness of Dealer to KMFC when due, all indebtednessof Dealer to KMFC shall then be deemed to have become Immediately due and payable, and ~ h Guarantor shall thenpay upon demand the fuff amount of the Illdebtedness remaining unpaId

.3. Qontlnuatlon and Renewal. This Continuing Guaranty relates to a1llndebtednoss, including that ansmg undersuccessfve transactions, which shan either contInue the Indebtedness or from time to time renew It after It has beensatisfied. TheliabilityofGuarantor shall be for thefull amountdue KMFC at any time and shall Include pnnapal, togetherwith all interest, upon the indebtedness and arrt charges of !


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2 -9. Subordination. Any Indebtedness of Dealer now or hereafter held by Guarantor IS hereby subordinated to theIndebtedness of Dealer to KMFC. Any such Indebtedness of Dealer to Guarantor, It KMFC so requests, shall becollected, enforced and received byGuarantor as trustee for the benefit of KMFC and be paid overto KMFC on account

of llldebtedness of Dealer to KMFC. wlthout reduCIng or affecting many manner the lIaMIty 01 Guarantor under thIsGuaranty10 Costs. expenses and AttoIlNYS' fees All payments, advances, charges. costs and expenses, Includmgreasonable attorneys' fees, made or Incurred by KMFC In exercISing any nght. power or remedy conferred by thiSGuaranty or In the enforcement thereof shall be paid to KMFC by Dealer Immediately and without demand, togetherwith IOterest at the highest rate permitted by law.11. ObligatlQns of Married Person. Arri person who stgns thiS Guaranty as a Guarantor In hls or her IndMdualcapacity hereby agrees that recourse may be had against hiS or her separate property for all of his orher oblIgationsunder thIS Guaranty .12. Interpretation and Applicable Law. In all cases Inwhich there IS but aSingle Dealer, all words used heraln In theplural shallbe deemed to have been used In the srngularwhere the context and construction so require; and when thereIs more than one Dealer named herein, theword aOealer" shallmean all and anyone ormore of them. This Agreementshall become effectIVe when KMFC accepts It at KMFC's pnnCtpaJ place 01 busfness In Callfomla, and this Agreementshall be governed and construed III accordance with the laws of the State of CalifornIaExecuted by the undersigned Guarantorandwltnessed thiS 301h day of Av,s," ' - . \1 : .19 S"'3 .

w ' t n e s s ' ~ K ~ e + C{tYPor pnnt name0 < J ~ ~Address 1 ~ C C 7 ' < k . . 1 " ~ "b e oJC

Guarantor. M : _ ; v : m _ - : - E _ . _ m I _ I L F . _ . . , . ~__ --:- _(type or print name)~ Q { t . . ~ ~ r e )Address. :r3:8A- Lo ...l C . ~ c . ~ ~ / - . IJ e:.

S"cle...... DR - . . : ~ ~ = = : : : ; : : : ~ - - J , . ; , D L . I l ( - - ' - ~ ; , . . , G . . . . _SOCial Secunty Number SOCial Secunty NumberDealer Number: _ . . . : 2 : . . . ; 4 : . . . . : 4 ~ _



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C G 5

-Kawasaki Motor. Finance Corporation I ~ U I ~ u u l n *Continuing Guaranty _

1 IndebtednessGuaranteed. For valuable consideration, the undersigned JUNE M. OJLFAX(the "Guarantor") uncondmonally guarantees and promIses to pay to""K


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. -

9. S,ut2.Qrdfnatrorj. Any Indebtedness of Dealer now or hereafter held by Guarantor IS hereby subordinated to the. andebtedness of Dealer to KMFC Any such Indebtedness of Dealer to Guarantor, If KMFC so requests, shall becollected, enforced and receivl;!d byGuaramor as trustee for the benefit of KMFC and be paid over to KMFC on accountof Indebtedness of Deater to KMFC, WIthout reducing or affecting In any manner the lIability of Guarantor under thIsGuaranty. .10. Costs. Expenses and Attorneys' Fees, All payments, advances, charges, costs and expenses, includingreasonable attorneys' fees, made or IOcurred by KMFC In exercising any right, power or remedy conferred by this.Guaranty or In the enforcement thereof shaJI be pald to KMFC by Dealer Immediately and without demand, togetherwith Interest at the highest rate permitted by law. .11. ObllgatlQns Of Mamed Persons. Any person who Signs thIS Guaranty as a Guarantor In his or her IndIVIdualcapacity hereby agrees that recourse may be had against his or her separate property fO( all of his or her obligationsunder tillS Guaranty.1'2. Imeroretat!oo andApplicable Law. In au cases In whichmerals but a SIngle Dealer, all words used herein In theplural shall be deemed to have been used In the singularwhere t h context and construction so reqUire, and when thereIs more than one Dealer named herein. theword -Dealer- shall mean all and arry one or more of them. ThiS Agreement .shall become effectIVe when KMFC accepts it at KMFC's pnnclpaJ place of bUSiness In California, and thIs Agreementshall be governed and construed In accordance with the laws of the Stale of California.Executed by the undet"Slgned Guarantor and witnessed thiS ~ i "'- day of f-\u ()..(.'.T I 19 r-? .

V\ljtness:MCU11 K , . . ~{type or pnnt name) Guarantor: JUNE M. COLFAX(type or pnnt name)( ~ a t l J

7Address' '......l!r.(.....~ " " " - / " ' - _ ~ _ ~ _ / . ? - " - , . . : . : / , - - , ' : ' _ ; ( _ ~ _ ~ . . : : c _ . L - I f . . : : . . ~ . . : . . : ' ,=-(,"--,,r_//l

A d d r e s s ~ 11:B A ~ y t ; N D z J f ~K.e1?:C1Z- ce ot-:r2D3

SOCial SacuntyNum be r_ __ SOCIal Security Number _Dealer Number. -'2.::=4'-"'4 _



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Dealer k J.r: 0244 KAWASAKI MOTORS Flh...-':E CORPORATION 71141.:. ,Jqrganizalion Coda 1171010 FLOORING OUTSTANDING BALANCE INVENTORY Page 1 of9CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764 PORTLAND RD NESALEM OR 973051760

Year. Model Number VIN Invoice # Invoice Date Cra te # Q!.Q!: Comments2010 EX250JAF JKAEXMJ1XADA55286 BCPF7 214/2010 TK3914 BLU $3,649.00 Crated2009 EX650C9F JKAEXEC139DA45617 792TO 7/8/2009 n0502 LIM $6,029.00 Crated2009 Kl650E9F JKAKlEE179DA29044 794ZS 7/15/2009 TG4265 Bl K $5,009.00 Crated2009 EX250J9FAL JKAEXMJ199DA447B9 79992 8/412009 TG9197 LIM $3.734.00 Crated2009 EX250J9FAL JKAEXMJ169DA44782 799QM 8/412009 TG9176 LIM $3,734.00 Crated2009 Kl650E9F JKAKlEE149DA26974 79G1N 5/13/2009 TD5953 Bl U $5,009.00 Crated2009 Kl650E9F JKAKlEE1690A29052 79HTl 5/1512009 TG4273 Bl K $5,009.00 .crated2010 EX250JAF JKAEXMJ14ADA64419 8COZF 315/2010 TN9725 Bl U $3,649.00 Crated

2010 EX250JAFA JKAEXMJ16ADA64681 8COZF 3/5/2010 T00776 LIM $3,819.00 Crated2010 EX250JAFA JKAEXMJ16ADA64017 8C1KY 315/2010 TN9925 Bl K $3.819.00 Crated2010 KlF250AAF JKALFMA10AB578562 8C4JK 319/2010 E90199 RED $3,224.00 Crated2010 IX1400CAFA JKBZXNC11AA022739 BD44B 6/212010 790370 SIL $11.919.00 Crated2010 EX250JAF JKAEXMJ1XADA53537 8CPF7 2/412010 TK4048 Bl U $3,649.00 Crated2009 Kl650E9F JKAKlEE179DA29433 791Rl 71712009 TG4255 Bl K $5,009.00 Crated2010 EX250JAF JKAEXMJ11ADA58206 8CPF7 2/412010 Tl6022 RED $3,649.00 Crated2010 EX250JAF JKAEXMJ12ADA53242 8CPF7 2/412010 TJ9396 RED $3,649.00 Crated2010 EX250JAF JKAEXMJ13ADA53850 8CPF7 214/2010 TK3779 Bl U $3,649.00 Crated2010 EX250JAF JKAEXMJ15ADA53249 8CPF7 2/4/2010 TJ9398 RED $3,649.00 Crated2010 EX250JAF JKAEXMJ18ADA53522 8CPF7 214/2010 TK4034 BLU $3,649.00 Crated

6!-vV- 4 .... cL


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CYCLE SPORTS KAWASAKI Phone: (503) 390-9000476.4 PORTLAND RD NESALEM OR 97305-1760

Year Model Number Invoice # Invoice Date Crate # Color Balance Status Comments2010 VN900CAF JKAVN2Cl5AA037275 8CPF7 2/412010 729411 BLU $7,346.00 Crated2010 KVF360AAF JKBVFHA1XAB583795 8CRHT 2/912010 E87827 RED $5,391.00 Crated2010 KAF400AAF JK1AFEA17AB550741 8CV2G 212212010 E86095 RED $6.654.00 Crated2010 EX250JAF JKAEXMJ11ADA62482 8CY16 3/412010 TM99B7 RED $3.649.00 Crated2011 KAF400ABF JK1AFEA18BB551981 8001V 5/1912010 E94900 BlK $6.824.00 Crated2010 KlF250AAF JKAlFMA1XAB578603 8D1RN . 5/2012010 E93264 BLU $3,224.00 Crated2010 KVF7500AF JKAVFD015AB518913 8CPF6 2/412010 E63024 GRN $7,644.00 Crated2009 KLX250W9F JKALXMW1X90AOl546 776N2 3/512009 TY5036 aL K $4,754.00 Crated2009 KSF450B9F JKASFGB1098514366 75XB1 10/1412008 092859 LIM $6.666.00 Crated

2009 KSF450B9F JKASFGB129B514580 75X81 10114/2008 092948 LIM $6,666.00 Crated2009 KSF450B9F JKASFGB169B514341 75X81 . 10/14/2008 092854 LIM $6,666.00 Crated2009 KLX140B9F JKBLXPB1X90A04966 75X82 10/14/2008 TU6963 LIM $2,749.00 Crated2009 KLX140B9F JKBLXPB199DA04957 75X82 10/14/2008 TU.6984 LIM $2,749.00 .crated2009 KLX140B9F JKBLXPB1490A04963 75YH4 10/14/2008 TU6985 LIM $2.749.00 Crated2009 KVF650D9F JKAVFE01X9B527270 769FZ 1/12/2009 E41222 BlK $6,114.00 Crated2009 KSF45089FB JKASFGB1598516694 76HV8 1111112008 E26556 MON $6.921.00 Crated2009 KVF650D9F JKAVFE0169B526777 76MDR 11/18/2008 E27380 LIM $6.114.00 Crated2009 KSF450B9F JKASFGB1998514320 76TGW 1212/2008 092642 LIM $6.666.00 Crated2009 KSF450B9FB JKASFGB149B516833 76TGW 121212008 E29982 MON $6.921.00 Crated2009 EX650C9F JKAEXEC199DA44469 791RM 7/712009 TH2353 LIM $6.029.00 Crated

ComplaintExhibit 4Page 2. of 19

D e a l e r ~ ' 1r: 0244 KAWASAKI MOTORS Fr 'E CORPORATION 711/Organiz... ";ode 1-17-10-10 FLOORING OUTSTANDII \ . .ANCE INVENTORY



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Pagb .....r 9CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764 PORTLAND RD NE'SALEM OR 97305-1760

Year Model Number VIN Invoice # Invoice Date Crate # Color Balance Status Comments2009 'KLE650A9F JKAlEEA119A037563 778N2 3fSf2009 675900 !3lU $6,284.00 Crated2009 ER650C9f .JKAEREC199DA43879 791RM 7f712009 TH1139 BLU $5,689.00 Cra ted2009 KLX250W9F JKALXMW109DA01538 77BN2 315(2009 TY5043 BlK $4,754.00 Crated2009 KLX250W9F JKALXMW129DA01508 778N2 3/5(2009 TY5041 BlK $4,754.00 Crated2009 KlX250W9F JKALXMW179DAO1536 778N2 3(512009 TY5037 BLK $4,754.00 Crated2009 KSF450S9F JKASFGB169B514453 77J7G 1/1212009 093021 RED $6,666.00 Crated2009 KLX140B9FA JKBLXPB189DA0742B 77SDB 2(4/2009 TY7886 MON $2,919.00 Crated2009 KLX140B9FA JKBLXPB189DA07431 77SDB 2f4f2009 TY7B87 MON $2,919.00 Crated2009 Kl650E9F JKAKLEE199DA27585 789NX 514/2009 TD6725 RED $5,009.00 Crated2009 ER650C9F JKAEREC119DA35615 789NY 5/4/2009 TF9441 BLU $5,689.00 Crated2009 KVF650D9F JKAVFED1998527647 78M1V 3/1912009 E53703 RED $6,114.00 Crated2009 JT1500F9F US-KAW90764C909 78NWW 3/24/2009 E60153 Sll $10,744.00' Crated2010 KRF750NAF JKARFDN14AB500743 8COZG 3/5(2010 E78824 RED $9,799.00 Crated2009 KSF450B9FB JKASFGB199B516892 778N1 3f5f2009 E30040 MON $6,921.00 Crated2010 EX250JAF JKAEXMJ11ADA62403 BDS9P 5/5(2010 TP9123 RED $3,649.00 Crated2010 VN900CAFA JKAVN2Cl0AA038938 8DMGP 4(2812010 753692 BLK $7,601.00 Crated2010 VN900DAF JKAVN2D14AA03801B BDMGP 4(2812010 725195 BlU $8,111.00 Crated2010 ZR1000DAF JKAZRCD11AA001732 8DMGP 4128(2010 754058 BlK $9.174.00 Crated2010 ZX600RAF JKAZX4R14AA019257 8DMGP 412812010 729557 BLK $9,174.00 Crated2010 KRF750NAF JKARFDN1OAS500674 8DMGQ 4/28(2010 E7B494 BlK $9,799.00 Crated

ComplaintExhibit 4Page 3 of 19

Dealer' 'er: 0244 KAWASAKI MOTORS F' ~ CORPORATION 7/1OrganiL. Code 1-17-10-10 FLOORING OUTSTANDII .LANCE INVENTORY



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Pag\::. llf 9CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764 PORTU\ND RD NESALEM OR 97305-1760

Year Model Number VIN Invoice # Invoice Date Crate # Balance Status Comments2010 KRF750SAF JKARFOS1XAB500251 8DMGQ 4/2812010 E82981 LIM $11,244.00 Crated2010 l


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CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764PORTLAND RD NESALEM OR 97305-1760

Year Model Number VIN Invoice # Invoice Date Crate # Color Balance Status Comments2010 VN1700EAF JKBVNRE16AA004312 8DMGP 412812010 770530 BlK $10,474.00 Crated2010 EX250JAF JKAEXMJ18ADA60065 8DMGP 4/28/2010 TM1014 Bl U $3,649.00 Crated2010 EX250JAFA JKAEXMJ14AOA64002 8DFL3 41512010 TN9933 Bl K $3,819.00 Crated2010 EX250JAFA JKAEXMJ10ADA64580 SDFL3 4/5/2010 TOO126 LIM $3,819.00 Crated2010 KVF750DAF JKAVFDD13AB521406 8DMGN 412812010 E79999 Bl K $7,644.00 Crated2009 Kl650E9F JKAKlEE1X9DA27594 79B7Z 5(8/2009 TD6750 RED $5.009.00 Missing2010 KRF750NAF JKARFDN18AB500955 SCPF8 2/512010 E78930 RED $9,799.00 Missing2009 KLX140B9FA JKBLXPB109DA07018 76NY2 1112012008 TY7579 MON $2,919.00 Missing2010 ZG1400CAF JKBZGNC13AA002492 8DS9P 51512010 784182 Bl U $13,279.00 Missing

2009 JT1500A9F US-KAW51021H609 78NWW 3/24/2009 E04975 BLU $7,429.00 . Missing2009 JS800A9F USKAW70503H809 78NWW 312412009 E04641 LIM $5,984.00 Missing2010 KRF750RAF JKARFDR1XAB500515 8CRHV 21912010 E82920 APG $10,904,00 Missing2009 ZX600R9FAl JKAZX4R149A012496 8C7H4 311612010 705204 MON $8,749.00 Missing2009 KlE650A9F JKAlEEA139A039458 78f'N{1/ 312412009 701078 BLU $6,284.00 Missing2010 VN900BAF JKAVN2B12AA057041 8DS9P 5/5/2010 734791 BLU $6,964.00 Missing2009 KSF450B9FB JKASFGB149B517027 778N1 31512009 E30112 MON $6,921.00 Missing2010 VN1700BAF JKBVNRBl2AA000732 8DMGP ,4/2812010 777822 GRY $15,914.00 Missing2009 ZX1400C9FB JKBZXNC149A013609 8DZZa 5/1412010 652706 MON $10.814.00 Missing2009 K S F ~ O B 9 F JKASFGB149B514371 75X81 10/1412008 D92864 LIM $6.666.00 Missing2009 ZX140OC9FB JKBZXNC189AO14830 80ZZR 5/1412010 689771 MON $10,814.00 Missing

ComplaintExhibit 4Page 5 of19

Dealer f ,r: 0244 .KAWASAKI MOTORS F' ~ CORPORATION 7/1Organiz.. l:ode 1171010 FLOORING OUTSTANDII\ .LANCE INVENTORY Page 019



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CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764 PORTLAND RD NESALEM OR 973051760

Ye


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CYCLE SPORTS KAWASAKI Phone: (503) 390-90004764 PORTLAND RO NESALEM OR 97305-1760

. Year Model Number Ylli Invoice # Invoice Date Crate # Color Balance Status Comments2011 KAF620MBF JK lAFCM116B505960 8FCGZ 6122/2010 F00267 RED $8,864.00 Uncrated2009 KSF90A9S RGSWE07A69B101952 769FZ 1/12/2009 Y21129 LIM $2.189.00 Uncrated2009 Kl650E9F JKAKLEE179DA22482 78NWV 3/24/2009 TA3868 Bl U $5,009.00 Uncrated2009 KSF5069S RGSWA04A59B101472 76BOC 11/4/2008 Y20372 LIM $1.649.00 Uncrated2009 KSF90A9S RGSWE07A49B101480 76BOC 11/4/2008 Y19542 RED $2.189.00 Uncra led2009 ZG1400A9F JKBZGNA129A021260 8D67l 619/2010 643117 B lK $12,429.00 Uncrated2009 KVF650D9F JKAVFEDl X9B526779 76MDR 11/18/2006 E27381 LIM $6,114.00 Uncrated2009 EX500D9F JKAEXVD109A116219 809BN 6/16/2010 690435 BLK $4,499.00 Uncrated2010 KVF360AAF JKBVFHA11AB562809 8BJC1 9/2/2009 E71472 BLU $5.391.00 Uncrated

2008 KLX140B8F JKBLXPB128DA00151 79L1Y 5127/2009 TP4562 LIM $2,664.00 Uncrated2006 ZX1000E8F JKAZXCE18aA004335 79M!!3 512912009 536135 BLU $10,031.00 Uncrated2008 ZX1000ESF JKAZXCE138A004338 79M94 5129{2009 536134 BLU $10,031.00 Uncrated2007 KLX300A7F JKALX8A137DA07085 79MM7 512612009 TL5467 LIM $4,381.00 Uncrated2008 JT1500B8F US-KAW44360A808 79NBF 5/29/2009 038235 LIM $10,159.00 Uncrated2008 KLX140B8F JKBLXPB198DA01751 79NBJ 5/2912009 TP8403 LIM $2.664.00 Uncrsted2009 Kl650E9F JKAKLEE179DA21347 78NWV 3/2412009 TY6308 RED $5,009.00 Uncrated2010 KAF950FAF JK1AFDF17AB501848 79P78 6/212009 E61794 RED $9,799.00 Uncrated2010 KLX250TAF JKALXMT1XAOA09672 8DMGP 4/28/2010 TOO 171 BLK $4,499.00 Uncrated2010 KVF750FAF JKAVFOF15AB503597 8BJC1 912/2009 E63630 BLU $7.941.00 Uncrated2010 KVF360CAF JKBVFHC11AB519268 8BNXM 9/22/2009 E74087 APG $5.689.00 Uncrated


Dealer .' ~ r 0244 KAWASAKI MOTORS F' 'E CORPORATION 7/1O r g a n l z ~ ~ o d e 1-17-10-10 F.lOORING OUTSTANDII\ .LANCE INVENTORY Page ... or 9 .



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CYCLE SPORTS KAWASAKI Phone: (503) 39090004764 PORTLAND RD NESALEM OR 97305-1760

Year Model Number VIN Invoice # Invoice Date Crate # Color Status Comments2010 KX450EAF JKAKXGEC7AA014242 BBYK2 111412009 740318 L 1 $7,091.00 Uncrated2009 ZX1000E9F JKAZXCE159A022910 7571D 10128/2008 618734 ORG $10,279.00 Uncra led2010 ~ X 2 5 0 J A F JKAEXMJ13ADA62385 8FKSP 7/1212010 TM6296 BLU $3.649.00 Uncra ted2010 KlF2SQAAF JKALFMA11AB578554 8C3KF 3/812010 E90191 RED $3.224.00 Uncra ted2008 VN1600A8FA JKBVNKA188A0269Z0 79NBM 5/2912009 533850 Bl U $9,479.00 Uncra led2009 ER650C9F JKAEREC199DA32347 76X3N 3/3112009 TD8487 BLU $5,669.00 Uncrated2009 BN125A9F JKABNRA159DA23797 7B1W8 4/9/2009 TD7336 SIL $2,494.00 Uncra ted2010 KRF750NAF JKARFDN11AB500B59 8CPF8 215/2010 E76574 Bl K $9.799.00 Uncra led2010 KAF400AAF JK1AFEA18AB550330 8DDQN 4/112010 E90653 BLU $6.654.00 Uncra led

2010 KSF450BAF JKASFGB19AB51794B 8DN3B 4/2612010 E65088 WHT $7.006.00 Uncraled2009 KL650E9F JKAKlEE179DA22417 78tNN 3/2412009 TA3877 8LU $5,009.00 Uncra ted2009 . KL650E9F JKAKLEE199DA2136S 7BWN 3/24/2009 TY6304 RED $5,009.00 Uncra ted2007 KVF750B7FA JKAVFDB1478513505 79L12 5127/2009 858450 MX l $7,271.00 Uncra ted2009 KRF750L9FA JKARFDL109B502505 78NWY 3124/2009 E58157 MON $10.819.00 Uncrated2008 KVF650EBF .JKAVFEE1X8B507663 79L11 5127/2009 C48574 HDW $6,081.00 Uncra ted2009 ER650C9F JKAEREC169DA32449 78YM7 3/31/2009 TD8450 BLU $5.689.00 Uncrated2009 EX650C9F JKAEXEC1X9DA32699 78YP6 313112009 TF1248 LIM $6.029.00 Uncra led2009 EX250J9FA JKAEXMJ129DA44150 790NT 7/2/2009 TH0751 LIM $3.734.00 Uncraled2010 EX250JAF JKAEXMJ1BAOA58199 BCPF7 2/4/2010 TL6016 REO $3.649.00 Uncraled2010 EX250JAF JKAEXMJ16ADA534B5 8CPF7 214/2010 TK2601 RED $3,649.00 Uncrated


Dealer r:Organlz8lN" ~ o d e

024411710-10

KAWASAKI MOTORS FIFLOORING OUTSTANDINL

;; CORPORATION.t..ANCE INVENTORY

7(1{Page \j tif9



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CYCLE SPORTS KAWASAKI4764 PORTLAND RD NESALEM OR 97305-1760

Phone: (503) 3909000

Year Model Number VIN Invoice # InvoiceDate Crate # Color Status Comments2010 KAF950FAF JK1AFDF14AB502424 8DMGR 4f28/2010 E92005 RED $9,799.00 Uncraled2010 VN900BAF JKAVN2B16AA057110 BDS9? 5(5/2010 734975 RED $6,964.00 Uncrated2010 VN900BAF JKAVN2B17AA056385 8CPF7 2(4/2010 730016 RED $6,964.00 UncratedUnits in Stock: 144 In Stock Balance: $894,778.00Units Missing: 18 Missing Balance: $162,621.00Total Units: 162 Total Balance: $1 ~ O 5 7 , 3 9 9 . 0 0


Deale .ber: 0554 KAWASAKI MOTORS I , _ ,NCE CORPORATION . 7/1:.11.01.110Case 6:10-cv-06221-TC Document 2 Filed 07/23/10 Page 41 of 50 Page ID#: 43


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Organization Code 1-17-10-10 FlOORING OUTSTANDING BALANCE INVENTORY Page 1 of 10CYCLE SPORTS KAWASAKI - Phone: (541) 607-9000555 RIVERRDEUGENE " OR 97404-3211

Year Model Number VIN Invoice # InvoIce Date Crate # Color Balance Status Comments2010 KAF950FAF JK1 AFDF15AB502206 8CPGR 215/2010 E78005 GRN $9,799.00 Crated2009 EX650C9F JKAEXEC169DA38B10 790QV 71212009 TG1364 LIM $6,029.00 Crated2009 KlE650A9F JKALEEA169A039373 78VS9 3/25/2009 701042 BlU - $6,284.00 Crated2009 KRF750l9FA JKARFDl189B502526 78Q80 3125/2009 E58173 MON $10,819.00 Crated2009 EX250J9F JKAEXMJ1X9DA32537 78N52 3/25/2009 TB9648 RED $3,649.00 Crated2009 JT1500F9F US-KAW90760C909 78N51 3/25/2009 E60149 SIL $10,744.00 Crated2009 KlE650A9F JKAlEEA109A039210 7BN50 3/25/2009 701237 GRN $ 6 ~ 2 B 4 . 0 0 Crated2010 VN900CAFA JKAVN2C14AA037906 BDOBF 5/1B/2010 741088 BlK $7,601.00' Crated2009 JT1500A9F US-KAW51638Ja09 78H5N 3/1212009 E22812 BLU $7,429.00 Crated2009 EX250J9F JKAEXMJ159DA41050 79B8P 5/4/2009 TG3999 BLU $3,649.00 Crated2010 KRF750SAFA JKARFDS1XAB500749 8CRH2 2/912010 E87689 BLK $11,499.00 Crat!!d2010 KRF750RAF JKARFDR18AB500514 8CS1B 2/1212010 E82919 APG $10,904.00 Crated2010 EX250JAF JKAEXMJ10ADA62375 8CY7M 31412010 TM6315 BLU $3,649.00 Crated2010 KLX110DAF JKALXSD15ADA74870 6CY7M 3/4/2010 TM4375 LIM $2,O06.l;>0 Crated2009 KLX140B9FA JKBLXPB159DA07418 77SVD 2/412009 TY7861 MON $2,919.00 Crated2011 KAF400DBF JK1AFED1XBB501773 8D03X 511912010 E95595 BLU $7,164.00 Crated2010 KRF750NAF JKARFDN18AB500857 8CPGO 2(512010 E78573 BLK $9,799.00 Crated2010 KLX110CAF JKALXSC l6ADA75365 8CllV 3/512010 T0090p LIM $1,879.00 Crated2010 KVF750DAF JKAVFDD16AB519097 8BJGT 9(212009 E63167 RED $7.644.00 Crated

6f>'S'((A;u.(/.{j.. ComplaintExhibit 4Page 10 of 19

Dealr "ber; 0554 KAWASAKI MOTORf NCE CORPORATION 10Org3.. .mCode 1-17-10-10 FLOORING OUTSTANL dALANCEINVENTORY P a 9 ~ l of 10



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CYCLE SPORTS KAWASAKI Phone: (541) 607-9000555 RIVER RDEUGENE OR 97404-3211

Year Model Number VIN .Invoice # Invoice Date Cra te # Color Balance Status Comments2011 KX100DBF JKAKXTDC18A029072 BFGVT '711/2010 796552 LIM $3,579.00 Crated2009 EX250J9F JKAEXMJ199DA44436 79TKF 6/11/2009 TH2058 RED $3,649.00 Crated2009 KL650E9F JKAKLEE149DA21676 79TKO 6/1112009 TY5681 Bl U . $5.009.00 Crated2009 KL650E9F JKAKlEE149DA21628 79S4R 6/11/2009 TY5998 BLU $5,009.00 Crated2009 KL650E9F JKAKLEE1X9DA21679 79S4R 6/11/2009 TY5687 BLU $5,009.00 Crated2009 ER650C9F JKAEREC189DA43B56 791R2 71712009 TH1138 Bl U $5,6B9.00 Crated2009 KL650E9F JKAKLEE169DA27785 79RZY 6/5/2009 TG4624 RED $5,009.00 Crated2009 EX650C9F JKAEXEC169DA44462 791R2' 717/2009 TH2345 LIM $6,029.00 Crated2008 JT1500C8F US-KAW509161706 79NDQ 5/29/2009 C97343 WH T $8,544.00 Crated

2008 JT1500C8F US-KAW50294G706 79NDP 5/29/2009 C75555 WHT $8,544.00 Crated2008 JT1500B8F US-KAW44386A808 79NDM 5/29/2009 038246 LIM $10,159.00 Crated2009 Kl650E9F JKAKlEE129DA27296 79K8V. 5/2612009 T06023 BLU $5,009.00 Crated2010 KVF360AAF JKBVFHA12AB583662 8CPGN 2IB/2010 E84202 BLU $5,391.00 Crated2009 KL650E9F JKAKLEE129DA27282 79J6Y 512012009 10601B BLU $5.009.00 Crated2010 EX250JAF JKAEXMJ13ADA64461 8CY7M 3/4/2010 T00381 REO $3,649.00 Crated2009 JT1500F9F US-KAW90632A909 8BQGT 9/29/2009 E439BO S il $10,744.00 Crated2010 EX250JAFA JKAEXMJ16ADA64664 60RW 4/29/2010 T00579 LIM $3,819.00 Crated2009 EX250J9F JKAEXMJ179DA30826 7784Z 315/2009 TB7264 BLU $3.649.00 Crated2009 Kt:X250W9F JKAlXMW 1890AO1531 7784Y 314/2009 TY5038 BlK $4,754.00 Crated2009 KLX250W9F JKALXMW1590A01437 7784Y 3/4/2009 TY4772 BlK $4,754.00 Crated


Deale.' ,ber: 0554 KAWASAKI MOTORS ~ C CORPORATION 7 '0Organ. .1 Code 1-17-10-10 FLOORING OUTSTANl ,ALANCE INVENTORY Pag.. of 10



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CYCLE SPORTS KAWASAKI Phone: (541) 607-9000555 RIVER RDEUGI=NE OR 97404-3211

Year Model Number VIN Invoice # Invoice Date Crate # 2!.Q! Balance Status Comments2009 ZX1400C9FB JKBZXNC119A014068 80270 5/25(201 0 678954 MON $10.814.00 Crated2009 KSF450B9FB JKASFGB159B517022 7784X 3/5(2009 E30105 MON $6.921.00 Crated-2009 KSF50B9S RGSWA04A69B101299 76B7T 11/412008 Y20094 LIM $1.649.00 Crated2009 ZG140089F JKBZGNB1X9AOl1462 7784Z 3(5(2009 658385 BLK $11,724.00 Crated2010 KVF750DAF JKAVFDDlOAB521122 8DR8C ,5(5/2010 E74320 BlK $7.644.00 Crated2009 KLX250W9F JKALXMW119DA01418 7784Y 3(412009 TY5013 BlK $4.754.00 Crate


DealE' .,ber: 0554 KAWASAKI M O T O R ~ "lCE CORPORATION 7 10Orgal . In Code 1-17-10-10 FLOORING OUTSTANL JALANCE INVENTORY Pag", -, of 10



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Year MOdel Number .Ylli Invoice # Invoice Date Color Balance Status . Comments2011 KAF950GBF ..Jl


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CYCLE SPORTS KAWASAKI Phone: (541) 607-9000555 RIVERRDEUGENE OR 97404-3211

Year Model Number VIN Invoice # Invoice Date Crate # Color Status Comments2010 KLX110CAF JKALXSC11ADA72664 BSOVJ 11/10/2009 TK6740 LIM $1,879.00 Missing.2009 ZX600R9FAL JKAZX4R119A012634 6DKJK 4/15(2010 705219 MON $8,749.00 Missing2009 ZX600R9FAl JKAZX4R169A013596 8DCBR 4/912010 705328 MaN $8,749.00 Missing2009 ZX600R9FAL JKAZX4R169A012774 8DKJK 4/15/2010 705239 MaN $8,749.00 . Missing2010 EX250JAFA JKAEXMJ12ADA64641 8GOZ4 315/2010 T00888 LIM $3,819.00 Missing2009 ZX600R9FAL JKAZX4R1B9A012520 BDKJJ 4/15(2010 705206 MON $8,749.00 Missing2010 KAF620MAF JK1AFCM12AB505156 8C4J3 319/2010 E88866 GRN $8,694.00 Missing2009 JT1500F9F US-KAW90876E909 8BNFP 9/21/2009 E65397 SIL $10,744.00 Missing2009 ZX600R9FAL JKAZX4R189A012632 8DKJJ 4115/2010 705218 MON $8,749.00 Missing2009 ZX600R9FAL JKAZX4R189A013599 8DCBR 4/9(2010 705329 MaN $8,749.00 Missing2009 ZX600R9FAL JKAZX4R139A012814 8DKJK 4/15/2010 705237 MaN $8.749.00 Missing2009 ZX600R9FA JKAZX4R149A009503 BDCBR 4/912010 683635 MaN $8,749.00 Missing2009 ZX600R9FAL JKAZX4R149A013597 8DKJK 4/1512010 705327 MON $8,749,00 Miss ing2010 EX250JAF JKAEXMJ1XADA50752 8CPGP 2/4/2010 TJ9429 RED $3,649.00 Missing2009 ZX600R9FAL JKAZX4R169A012564 8DKJK 1/15/2010 705222 MaN $8,749.00 Missing2009 ZX600R9FAL JKAZX4R159A012636 8DKJK 4/15(2010 705220 MON $8,749,00 Missing2009 JT1500F9F US-KAW90891 E909 BBNFN 9/2112009 E65412 SIL $10,744,00 Missing2009 ZX600R9FA JKAZX4R129A009502 8DCBR 4/912010 683634 MaN $8,749.00 Missing2009 JT1500F9F US-KAW90S03ES09 8BNFN 912112009 E65422 SIL $10.744.00 Missing2009 JT1500F9F US-KAW90862D909 8BNFP 9/21(2009 E653B4 SIL $10,744.00 Missing


Dealer ~ "er: 0554 KAWASAKI MOTORS F" 'SE CORPORAT10N 711,r 1Organl1:. ';ode 1-17-10-10 FLOORING OUTSTANDh LANCE INVENTORY Page (0



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Model Number VIN Invoice # Invoice Date Crate # Color Balance Status Comments2009 JT1500F9F US-KAW90864D909 8BNFP 9/2112009 E65386 S il $10,744.00 Missing2009 ZX600R9FAl JKAZX4R159A012393 8DKJJ 4/15/2010 705197 MON $8,749.00 Missing2009 JT1500F9F US-KAW90896E909 BBNFN 912112009 E65417 Sil $10,744.00 Missing2009 ZX600R9FA JKAZX4R139A013610 BDCBR 41912010 7 0 4 7 2 ~ MaN $8.749.00 Missing2009 ~ T 1 5 0 0 F 9 F US-KAW90870E909 BBNFP 9121/2009 E65391 Sil $10.744.00 Missing2009 JT1500F9F US-KAW90B71E909 8BNFP 9121/2009 E65392 Sil $10,744.00 Missing2009 JT1500F9F US-KAW90893E909 8BNFN 9/21/2009 E65413 Sil $10.744.00 Missin92009 Jf1500F9F US-KAW90872E909 8BNFP 9121/2009 E65395 S ll $10.744.00 Missing2009 Jf1500F9F US-KAW90892E909 BBNFN 9121/2009 E65414 S il $10.744.00 Missing2009 ZX600R9FAl JKAZX4R139A012845 8DCBR 4/9(2010 705243 MON $8,749.00 Missing2009 JTf500F9F US-KAW90673E909 8BNFP 9121(2009 E65393 S il $10.744.00 Missing2009 JT1500F9F US-KAW90675E909 8BNFP 912112009 E65396 S il $10,744.00' Missing2009 ZX600R9FA JKAZX4RlX9A0095B5 8DCBR 4(9/2010 694697 MON $8.749.00 Missing2009 KSF450B9F JKASFGB109B514335 76TSO 12(2/2008 D9284B LIM $6.666.00 Uncrated2009 KLX250W9F JKALXMW159DA00367 76ZlY 12/912008 TX3023 Bl K $4.754.00 Uncrated2009 KSF450B9F JKASFGB169B514338 7784X 3/5(2009 092851 LIM $6,666.00 Uncrated2009 KLX250W9F JKALXMW109DA01412 7784Y 314/2009 TY5015 Bl K $4.754.00 Uncrated,2009 KLX250W9F JKALXMW1290A01511 7784Y 3/412009 TY5033 Bl K $4,754.00 Uncrated2009 KLX140B9FA JKBLXPB109DA07004 76N17 11 (2012006 TY7581 MON $2.919.00 Uncrated2009 KSF450B9FB JKASFGB139B517021 7784X 3/512009 E30106 MaN $6.921.00 Uncrated


Dea ler " . "be r: 0554 KAWASAKI MOTORS Io.ICE CORPORATION 7 \0Orgsl " Code 1-17-1D-l0 FLOORING OUTSTANl ,ALANCE INVENTORY Pag" , of 10



47/50


Year Model Number VIN Invoice # Invoice Date Crate # Status Comments2009 KVF750E9F JKAVFDE129B505157 75YL7 1011'5/2008 098531 HOW $7.516.00 Uncra ted2007 KAF620H7F JK1AFCH197B507182 72VXX 4/3/2008 016610 HOW $6,764.00 Uncra ted2009 KL650E9F JKAKLEE1X90A17843 750SX 10/21/2008 TX1416 BLU $5,009.00 Uncraled2009 KX65A9FA JKBKXEAC69A067855 75745 10/2812008 624753 MaN $2.814.00 Uncrated2010 VN900CAFA JKAVN2C11AA038057 8DYCK 5/1112010 744450 BLK $7,601.00 Uncrated2009 KSF45089F JKASFGB159B515853 75YB4 10/15/2008 E07873 RED $6,666.00 Uncrated2009 KSF450B9F JKASFGB169B515148 75YB4 10/1512008 E07872 RED $6.666.00 Uncraled2009 KLX110A9F JKALXSA149DA68199 75YBH 10/1512008 TX2272 LIM $1,666.00 Uncrated2009 KLX140A9F JKBLXPA11 90A0371 0 75YBJ 10/1512008 TV4228 LIM $2,494.00 Uncraled2010 ZX1000FAF JKAZXCF1XAA002381 80WRM 517/2010 777224 Bl K $11,299.00 Uncrated2009 KSF45089F JKASFGB1898514311 75YL7 10/1512008 D92834 LIM $6.666.00 Uncrated2009 KLX140A9FA JKBLXPA1690A04562 76N17 11/20/2008 TY7347 Ma N $2.664.00 Uncrated2009 KVF650G9F JKAVFEG139B505638 75YL7 10/1512008 E09392 HOW $6,836.00 Uncrated2009 KX65A9F JKBKXEAC39A066145 75YMB 10/15/200B 598244 LIM $2,644.00 Uncra ted2009 KLX110A9FA JKALXSA189DA69534 7621F 12/11/2008 TY7205 MON $1.751.00 Uncraled2010 ZX600RAF JKAZX4R19AA019559 8CTHZ 211612010 729874 RED $9.174.00 Uncra ted2009 KSF90A9S RGSWE07A89B100249 7692P 1/5/2009 Y17191 LIM $2.189.00 Uncrated2009 KLE650A9F JKALEEA159A034147 76920 1/5/2009 634286 GRN $6,284.00 Uncraled2009 KLX250W9F JKALXMW129DA01456 76920 11512009 TY4955 BLK $4,754.00 Uncrated2009 KLX250W9F JKALXMW149DA01459 76920 1/512009 TY4927 BLK $4.754.00 Uncrated


Deale' 'ber: 0554 KAWASAKI MOTORS ICE CORPORATION 71 0Organ.. 1Code 1-17-10-10 FLOORING OUTSTAND. ALANCE INVENTORY P a 9 1 : : ~ ",I 10



48/50

CYCLE SPORTS KAWASAKI Phone: (541) 607-9000555 RIVERRDEUGENE OR 97404-3211

Year MOdel Number VIN Invoice # Invoice Date Crate # 2!.Q! Balance Status Comments2009 KLE650A9F JKALEEA1X9A033138 76KNB 11i1412008 634092 GRN $6,264,00 Uncrated2009 KLX140B9F JKBLXPB179DA04794 75YBK 10/15/2008 TU69S6 LIM $2,749.00 Uncrated2010 KlF250MF JKAlFMA13AB578555 8C3KL 3/812010 E90192 RED $3,224.00 Uncrated2010 KLF250MF JKALFMA19AB577961 8CPGN 21812010 E81364 BLU $3,224.00 Uncraled2008 KVF6500BF JKAVFED188B522194 79MN7 5/26/2009 C77999 LIM $5,784.00 Uncrated2007 ZX1000D7F JKAZXCO167A027693 79MPH 5/28/2009 985662 BlU $9,561.00 Uncrated2008 KLX450ABF JKALXGA14BA006098 79NCO 5129/2009 455932 LIM $6,394.00 Uncrated200B KLX450A8F JKALXGA138A006254 79NC1 5/29/2009 456039 LIM $6,394.00 Uncrated2008 KLX450A8F JKALXGA128A006326 79NC2 5/29/2009 456096 LIM $6,394.00 Uncrated

2007 JT1500B7F US-KAW36905E707 79NDH 5/2912009 C66788 RED $9,989.00 Uncrated2009 KSV700A9F JKASV6A179B521281 77Z3F 2111/2009 E17115 LIM $6,071.00 Uncraled2006 .JT1500BBF US-KAW40557J708 79NDl 5/2912009 007638 LIM $10,159,00 Uncrated2010 EX250JAF JKAEXMJ 1OADA56284 8CPGP 2/412010 TK4154 BlU $3,649.00 Uncraled2010 KAF400MF .JK1AFEA17AB550223 8C3D6 3/812010 E88046 BlU $6,654.00 Uncraled2008 VN160qB8F JKBVNKB128A018469 79NDR 512912009 453650 RED $9,649.00 Uncraled2009 EX650C9F JKAEXEC149DA39454 79RZZ 6/5/2009 TH0044 BlK $6,029.00 Uncraled2010 KVF360CAF JKBVFHC1XAB519267 88NXV 9/22/2009 E74086 APG $5,689,00 Uncrated2009 ER650C9F . JKAEREC109DA43754 79848 6/11/2009 TH1071 BlU $5,689.00 Uncraled2008 KLX140BBF JKBLXPB108DA03968 72TSO 312712008 TS6598 LIM $2,300,00 Uncraled2010 KLX110CAF JKALXSC12AOA72382 8BOVJ 11/1 012009 TK6738 LIM $1,879.00 Uncrated

Complaint.Exhibit 4Page 17 of 19

Dealer N"';'ber: 0554 KAWASAKI MOTORS fI ' 'leE CORPORATION 7/1" 'lOrgani, ~ o d e 1-17.10-10 FLOORING OUTSTANDI .LANCE INVENTORY Pag,- . . 10CYCLE SPORTS KAWASAKI Phone: (541) 6079000



49/50

555 RIVER RDEUGENE OR 97404-3211

Year Model Number VIN Invoice # Invoice Date Color ~ o m m e n t s2010 KLX110DAF JKALXSD19ADA73043 8BOVJ 11/10/2009 TK7646 LIM $2.006.00 Uncrated2007 JT1500B7F US-KAW36945F707 79NDJ 5/29/2009 C66610 RED $9,989.00 Uncrated2009 KLE650A9F JKALEEA129A039273 78Q8M 3/25/2009 701258 GRN $6.284.00 Uncrated2007 JT1500B7F US-KAW38045F707 8D4DM 5/28/2010 C67J74 RED '$8,105.00 Uncrated

2007 JT1500B7F US-KAW36939F707 8D4DL 5/2612010 C66120 BLU $7,705.00 Uncrated2010 ZR1000DAF JKAZRCDl2AA000668 8CY7M 3'412010 746855 BlK $9,174.00 Uncrated2007 JT1500B7F US-KAW35379D707 7WQSW 5/9/2007 C43232 BLU $6,621.00 Uncrated2009 EX650C9F JKAEXEC159DA35011 7842R . 4/2112009 TG1156 LIM $6,029.00 Uncrated2010 KRF75QSAFA JKARFDS14AB500455 8CPGO 2/5/2010 E84912 BLK $11.499.00 Uncrated2010 VN900CAF .JKAVN2C13AA039193 8CPGP 2f4l2010 753564 RED $7.346.00 Uncrated2010 VN900CAF JKAVN2C12AA037290 8CPGP 2f4/2010 729414 BLU $7.346.00 l}ncrated2009 VN900B9F J VN2B109A052240 79GNH 5/1312009 702051 BLK $6.624.00 Uncrated2009 KRF750L9F JKARFDL139B501266 78N53 3/25/2009 E39282 LIM $10,564.00 Uncrated2009 KL650E9F JKAKLEE119DA22767 79G1Z 511312009 TA3237 RED $5,009.00 Uncrated2010 VN9006AF JKAVN2Bl1AA056351 8CPGP 2f4/2010 725108 RED $6.964.00 Uncraled2010 KLX110DAF JKALXSD12ADA74356 BCPGP 2f4/2010 TM1286 LIM $2,006.00 Uncrated2010 EX250JAF JKAEXMJ18ADA55657 BCPGP 2/4/2010 TK3912 BLU $3,649.00 Uncraled2010 EX250JAF JKAEXMJ16AOA53471 8CPGP 2/4/2010 TK2619 REO $3,649.00 . Uncraled2010 EX250JAF JKAEXMJ11ADA55662 8CPGP 2f4/2010 TK3909 BLU $3.649.00 Uncraled2010 EX250JAF JKAEXMJ11ADA55290 8CPGP 2/412010 TK3911 BLU $3,649.00 Uncrated

CornpJaintExhibit 4Page 18 o19

Dealer ~ I - ~ e r :Organi.. ':;ode

05541-17-10-10

KAWASAKI MOTORS Fi tFLOORING OUTSTANDI

'CE CORPORATIONLANCE INVENTORY 7(VPage,

"l10

CYCLESPORTS KAWASAKI Phone: (541) 607-9000



50/50

555 RIVER RDEUGENE OR 97404-3211

Year Model Number VIN Invoice # Invoice Date Cra te # Color Balance Status Comments2009 EX250J9FA JKAEXMJ1990M5375 799BZ 7131/2009 TI9765 LIM $3,734.00 Uncrated2009 KLE650A9F JKALEEA179A036269 77SYB 2(4/2009 675647 BLU $8,284.00 Uncrated2010' VN900BAF JKAVN2B17AA056323 8CPGP 2/4/2010 729145 BLU $6,964.00 UncratedUnits In Stock: 133 In Stock Balance: $840,327.00Units Missing: 49 Missing Balance: $434,427.00Total Units: 182 Total Balance: $1,274,754.00

Complaint'Exhibit 4Page 19 019