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HomeMy WebLinkAbout00-03501 ~~~ ~<~ ~,~- ; I , ilIdI~' ,,-ot/. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYL VANIA THE crr GROUPfEQUIPMENT FINANCING, INC., Plaintiff Civil Action Number: ;JOOj- 35-0 I Cl VI! v. MORGAN HUGHES, INC., AND MORGAN C. HUGHES, Defendants NOTICE You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by an attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE TIllS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HA VB A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone No.: (717) 249-3166 HBG\48S16.1 j I ,~ 0.' IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE CIT GROUP/EQUIPMENT FINANCING, INC., Civil Action Number: Plaintiff v. MORGAN HUGHES, INC., AND MORGAN C. HUGHES, Defendants NOTlCIA Le han demandado a usted en la corte. Si usted qui ere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita 0 en persona 0 por abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso 0 notificacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede perder dinero 0 sus porpiedades 0 otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABODAGO IMMEDlATAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DlNERO SUFICIENTE DE P AGAR TAL SERVICIO, VA Y A EN PERSONA 0 LLAME POR TELEFONO A LA OFlCINA CUY A DlRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASlSTENClA LEGAL. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 Telephone No.: (717) 249-3166 HBG\48816.1 ". r-c IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE CIT GROUPfEQUIPMENT FINANCING, INC., Civil Action Number: ,9f) - 350 I ~ ~. Plaintiff v. MORGAN HUGHES,INC., AND MORGAN C. HUGHES, Defendants COMPLAINT IN REPLEVIN AND FOR MONEY DAMAGES NOW COMES, The CIT Group/Equipment Financing, Inc. ("Plaintiff' or "CIT"), by and through its attorneys, Duane, Morris & Heckscher lLP, and files this Complaint in Replevin and for Money Damages against the above-named Defendants and, in support thereof, states as follows: 1. Plaintiff, The CIT Group/Equipment Financing, Inc., is a corporation duly organized under the laws of the State of New York with an address at 1620 West Fountainhead Parkway, Tempe, Arizona, 85282, and is authorized to do business in Pennsylvania. 2. Defendant Morgan Hughes, Inc. is a corporation with an address at 1 Park Avenue, Mechanicsburg, Cumberland County, Pennsylvania 17055. 3. Defendant Morgan C. Hughes is an adult individual with an address at 1 Park Avenue, Mechanicsburg, Cumberland County, Pennsylvania 17055. HBG\4S816.1 ,r. ~ l~ '1';-- COUNT I THE CIT GROUPIEQUIPMENT FINANCING, INC. V. MORGAN HUGHES, INC. REPLEVIN AND MONEY DAMAGES 4. Paragraphs 1 through 3 are incorporated herein by reference as if fully set forth herein. 5. On February 13, 1995, Otterbacher Manufacturing, Inc. ("Otterbacher") and Morgan Hughes, Inc. entered into a Security Agreement - Conditional Sale Contract (the "Security Agreement"). A true and correct copy of the Security Agreement is attached hereto as Exhibit A and incorporated herein. 6. Pursuant to the Security Agreement, Otterbacher agreed to loan to Morgan Hughes, Inc. pursuant to a conditional sale contract the amount of $105,118.00 for the purchase of one (1) Otterbacher Twenty Foot (20') Finished Food Trailer which was payable in 25 equal successive monthly payments commencing on June 15, 1995, except that no payments were due in the months of November, December, January, February, March, April, and May 1995, 1996, 1997, 1998, and 1999 on account of the seasonal business of Morgan Hughes, Inc. (the "Loan"). 7. The Loan was secured by a perfected lien in favor of Otterbacher in one (1) 1995 Otterbacher Twenty Foot (20') Finished Food Trailer, Serial No. IM9FA2027S1219102 (the "Collateral"). True and correct copies of the DCC-l Financing Statements filed in the Office of the Secretary of the Commonwealth and in the Office of the Prothonotary of Cumberland County evidencing the lien of crr are attached hereto as Exhibit B and Exhibit C, respectively, and incorporated herein. 8. Promptly after making the Loan, on February 15, 1995, Otterbacher assigned over to crr and crr accepted from Otterbacher all of Otterbacher's interests in the Loan, the Security HBG\48816.1 - 2- - - k~< !t$.~ Agreement and the Collateral. A true and correct copy of the Assignment to Be Signed by Seller- Assignor (the "Assignment") is attached hereto as Exhibit D and incorporated herein. 9. Prior to August 1996, Morgan Hughes, Inc., requested an extension of its payment schedule under the Loan. In particular, Morgan Hughes, Inc. asked to extend the payment of the installments due on July 15,1996, August 15,1996, September 15,1996, and October 15,1996 until November 15, 1997, August 15, 1998, and September 15, 1998, and November 15, 1999, respectively. 10. By way of correspondence dated August 1, 1996, crr consented to Morgan Hughes, Inc.'s request to extend its payment schedule. Payment of the installments due on July 15, 1996, August 15,1996, September 15, 1996, and October 15,1996 were extended to November 15,1997, August 15, 1998, September 15, 1998, and November 15, 1999, respectively. A true and correct copy of CIT's August 1, 1996 correspondence is attached hereto as Exhibit E and incorporated herein. 11. The Loan matured on November 15, 1999. 12. Although crr has not been able to inspect the Collateral (in spite of its requests to do so), if the Colla1eral has been maintained in good condition, reasonable wear and tear excepted, crr believes and therefore avers that the value of the Collateral is approximately $53,000.00. An Affidavit of Value is attached hereto as Exhibit F and is incorporated herein. 13. Upon information and belief, the Collateral is located at Morgan Hughes, Inc.'s place of business at I Park Avenue, Mechanicsburg, Pennsylvania 17055. HBG\48816.1 - 3 - d " ~ ,~ ~ 14. Pursuant to the terms and conditions of the Security Agreement, CIT has the right to immediate possession of the Collateral upon the occurrence of an event of default by Morgan Hughes, Inc. See Exhibit A, 'lI12. 15. Failure to make the scheduled payments is an event of default under the Security Agreement. 16. Events of default have occurred and are continuing to occur under the Security Agreement as a result of, among other things, the failure of Morgan Hughes, Inc. to make certain monthly installment payments. 17. Morgan Hughes, Inc. is currently past due for the monthly installments due from July 15, 1998 through the November 15, 1999 maturity date. 18. On March 17,2000, CIT notified Morgan Hughes, Inc. via United States Certified Mail, Return Receipt Requested, Postage Prepaid, that Morgan Hughes, Inc. was in payment default and that Morgan Hughes, Inc. had a period of ten (10) days to bring the account current. According to the return receipt, the letter was received by Morgan Hughes, Inc. on March 20, 2000. A true and correct copy of the March 17, 2000 letter and a true and correct copy of the signed returned receipt are attached hereto as Exhibit G and Exhibit H, respectively, and incorporated herein. 19. Morgan Hughes, Inc. did not respond to CIT's March 17, 2000 letter. 20. On April 7, 2000, CIT sent a second letter to Morgan Hughes, Inc. via United States Certified Mail, Return Receipt Requested, Postage Prepaid, declaring Morgan Hughes, Inc. in default, accelerating the unpaid balance, and providing Morgan Hughes, Inc. with a period of ten (10) days within which to pay the balance on the account. According to the return receipt, the letter was received by Morgan Hughes, Inc. on April 11, 2000. A true and correct copy of the April 7, HBG\48816.1 - 4- ,,"" ~"-'lii!fM 2000 letter and a true and correct copy of the signed return receipt are attached hereto as Exhibit I and Exhibit J, respectively, and are incorporated herein. 21. Morgan Hughes, Inc. did not respond to CIT's April 7, 2000 letter. 22. Morgan Hughes, Inc. has failed and refused, despite repeated demands by crr, to pay the indebtedness due under the Loan. 23. Upon information and belief, the Collateral is uninsured. 24. Failure to insure the Collateral constitutes a default under the Security Agreement. 25. Despite CIT's demand, Morgan Hughes, Inc. has also failed and refused to make the Collateral available to CIT for inspection or repossession. 26. CIT at all times has fully and properly performed its obligations under the Loan and the Security Agreement and all conditions precedent have been performed by CIT or have otherwise occurred to establish CIT's right to recover the Collateral. 27. Pursuant to the Security Agreement, Morgan Hughes, Inc. agreed to pay reasonable attorneys' fees and other expenses incurred by CIT in enforcing its rights against Morgan Hughes, Inc. See Exhibit A, 'J[9(b). 28. As of May 31, 2000, the amount of $66,794.72 is due and owing by Morgan Hughes, Inc. to CIT, which amount consists of the following: (a) $50,457.36 in unpaid contract payments; (b) $8,325.54 in contract late charges which accrued through the November 15, 1999 maturity date of the Loan; (c) $4,541.16 in contract late charges which have accrued since the November 15, 1999 maturity date of the Loan and through May 18, 2000; and (d) $3,470.66 in attorneys' fees and expenses incurred through May 31,2000. HBG\48816.1 - 5 - ,,~, WHEREFORE, Plaintiff, The crr Group/Equipment Financing, Inc., respectfully requests that this Court enter judgment in favor of Plaintiff and against Defendant Morgan Hughes, Inc., as follows: (a) for possession of the Collateral; (b) for money in the amount of $66,794.72 plus $756.86 per month commencing June 1, 2000 representing the unpaid balance due and owing on the Loan; (c) for crr's expenses and attorneys' fees incurred after June 1,2000 in enforcing its rights against Morgan Hughes, Inc.; and (d) for such other and further relief as this Court deems necessary or appropriate. COUNT II THE CIT GROUPIEQUlPMENT FINANCING, INC. V. MORGAN C. HUGHES BREACH OF CONTRACT 29. Paragraphs I through 28 are incorporated herein by reference as if fully set forth herein. 30. On or about February 13, 1995, Defendant Morgan C. Hughes executed that certain Guaranty in favor of crr, successor by assignment of Otterbacher, pursuant to which Morgan C. Hughes agreed to personally and unconditionally guarantee the obligations of Morgan Hughes, Inc. to crr under the Security Agreement (the "Guaranty"). A true and correct copy of the Guaranty is attached hereto as Exhibit K and incorporated herein. 31. On March 17, 2000, crr notified Morgan C. Hughes via United States Certified Mail, Return Receipt Requested, Postage Prepaid, that Morgan Hughes, Inc. was in payment default and that Morgan Hughes, Inc. had a period of ten (10) days to bring the account current. According to the return receipt, the letter was received by Morgan C. Hughes on March 21, 2000. A true and HBG\48816.1 -6- I I ~" correct copy of the March 17, 2000 letter and a true and correct copy of the signed returned receipt are attached hereto as Exhibit L and Exhibit M, respectively, and incorporated herein. 32. Morgan C. Hughes did not respond to CrT's March 17, 2000 letter. 33. On April 7, 2000, CrT sent a second letter to Morgan C. Hughes via United States, Certified Mail, Return Receipt Requested, Postage Prepaid, declaring Morgan Hughes, Inc. in default, accelerating the unpaid balance, and providing Morgan Hughes, Inc. with a period of ten (10) days to pay the balance on the account. According to the return receipt, the letter was received by Morgan C. Hughes on April 11, 2000. A true and correct copy of the April 7, 2000 letter and a true and correct copy of the signed return receipt are attached hereto as Exhibit N and Exhibit 0 respectively and are incorporated herein. 34. Morgan C. Hughes did not respond to CrT's April 7, 2000 letter. 35. On May 22, 2000, CrT sent a third letter to Morgan C. Hughes via United States, Certified Mail, Return Receipt Requested, Postage Prepaid, declaring Morgan Hughes, Inc. in default, accelerating the unpaid balance, and providing Morgan Hughes with a period of ten (10) days to pay the balance on the account. According to the return receipt, the letter was received by Morgan C. Hughes on May 23, 2000. A true and correct copy of the May 22, 2000 letter and a true and correct copy of the signed return receipt are attached hereto as Exhibit P and Exhibit Q respectively and are incorporated herein. 36. Defendant Morgan C. Hughes has failed to honor the Guaranty by refusing to pay the indebtedness owing to CrT under the Loan. 37. CIT is entitled to recover its costs and attorneys' fees and expenses under the Guaranty. HBG\48816.\ -7- , I .C I~,.~~...., .~ 38. As of May 31,2000, the amount of $66,794.72 is due and owing by Morgan C. Hughes to CIT, which amount consists of the following: (a) $50,457.36 in unpaid contract payments; (b) $8,325.54 in contract late charges which accrued through the November 15, 1999 maturity date of the Loan; (c) $4,541.16 in contract late charges which have accrued since the November 15, 1999 maturity date of the Loan and through May 18, 2000; and (d) $3,470.66 in attorneys' fees and expenses incurred through May 31, 2000. WHEREFORE, Plaintiff, The eIT Group/Equipment Financing, Inc., respectfully requests that this Court enter judgment in favor of Plaintiff and against Defendant Morgan C. Hughes as follows: (a) (b) (c) (d) HBG\48816.1 for possession of the Collateral; for money in the amount of $66,794.72 plus $756.86 per month commencing June 1, 2000 representing the unpaid balance due and owing on the Loan; forCIT's expenses and attorneys' fees incurred after June 1,2000 in enforcing its rights against Morgan Hughes, Inc. and Morgan C. Hughes; and for such other and further relief as this Court deems necessary or appropriate. - 8 - HBG\48816.1 "~ ~ ~~~~,' Respectfully submitted, DUANE, MORRIS & HECKSCHER LLP B Counsel for: The CIT Group/Equipment Financing, Inc. -9- ,J~:~I , - ~ . .~"". . . $ecuritv AgIUS_lit - Concfltic>ml Sa18 Conbact This form Is 'obJoctto F_ &1<1 _1ogaI req1linonenls. S... "- a of U1i$lonn lor i&l (J( Stales In which to tJ:le \hi, tOm!. .'. lle:lor;w OOI~_ fully _ding _. kind vi lIIlil. modoI...d serial.umbers and any oIll.' i*IItlem Information. 0.. Ii) ~ ZO' F1u....od _ T~. SIN il119FA2ll27S1Z1!1102. And all tires. _1$, ~, repIaoe_ subStiWtior1$, additioos and all pIOC8Olfs thereof. Z- .................ond_thallIl. _"";olD........ pctmorit,I fa1xxlbuslno.. 0'_'_ [0-- .grialIIuIvll. ( 1 agl\cuIUaI _ISO<> _n on Pogo:lt or ( 1- "'w"""" .... _... comnm:lol .......... Lacatian: ~ )a.rlt. 1ve!lW!! .....,.,.....n-i r.JIbnro cnmb@-rl;;lM PA Add..... CdJ QIIInIr SIIIIII ~lI'Id,Sefer. . _.. Ihal.. ~reg~oflh1!lrn;aMttoialtxdan.1fIeCo. '_. .,....rnmBln~.~.ttdnorbacomelHl'tof'fheRlilla&lallJ. __10 _u.. COiINIoI.....:_nSlll""" -... o041M1ocJ1l1 SoIIor_Pi!I'.IO_ vf..., .....g." Ill. -... af1hc: CoIIatadI wlltin'llidi Siate.,butwil'ftOt~ IbB ~ tam suCh 6tde ~lC'tIiltprilJrWritMfI il:OCl'sejU o' seDlr (~~ In 1heSlale of ~~Ia.II1o"""",,,..'WilI\OlHmoiold._tho... _ ........SUCIlpllOrWrilion_ :J. BI,1yIIr'IIP"mll...tltPily;Tennaar~ 9I.1,er agn:ea to paJ StlIlW 1M Am colllnlct II,,", llIloc (If!Im 3a} 00 IU!I I!ftN; ahawn bukIw:: till MConbBcI:Trrn8'Ptice.................--........................................ S1:.a lj(illi 00 (b) Co&/1 '-nPajim..... poid 10 Soller. U""""'_"C".............................. (c) v.!uent'T\'ado-In. Wno.o,_V.,................................... ...... (dj ~UponOelvely.K............V................ ............... ....... Ie) ccinlniotr.... """" Bala",:e (110m 3a minI:i noms....:Ie. and 3d). .. .. .. . ... . . . . . .. . . 1111. COl'llJ1llJt Tin'lB PI'k:.e B3tance is payable-ln..1.Z... _I ~ paymlr1ts B$ follows.: Equal ~ "'olllflly Pajimonbs $4.20.... .11 . ~~on . ~"j;'. . .'9 ~and1!1.sam.omounlonlt1o._daI6af""""mantl'l """""""' un..~ p;>l<I.' _ided. _. nM _"'iil'fiIi be on lhOOMOlIIl.af.1I1oll1onin>ald bilanoo. ~Pl,foru.., m6dlh:S of NcMMnbIl', DeClinbar. JGRHtY'1 FlItaarualfl MlIrt:h. ApdE and May QJ 'es.lJSS8~ 1991. 1918 and 1UliliII Wbldl ... skip months. s ,,~ Ir.U 00 $-'- $_!lI_ hO!L11A.OO OlIIerlhlln Eq.a1 SU.....1vo Monthly Paymcm.. .. Tl1oSoll...Ilaa_.the~"_C!l"_.\h8~~ d_ln~raph 'forq~l'IOh- ~_Oin"'~~ftiQ..~ii. .. ~t>g.:..~~~~~.~~.:.~\'II''''~.,;,. ~_I>>~ 1l!l'I'_,. . .... 'M ...... J ._'~.,,_. . ...~ .p(il'iltl""''''. ... .. -. ~ur.e '.,,_, " ,',"", ,111.,__' ",', a:, !1Ul;I,ct:itime, AI 0IliI0<:!Iii. ~mIN.-.' 'lince... .m',.r:.. _... .Q.g.....~. .~. .1>> ~..~.~.........o{......-. ...g. ..... 9\!>~..1lI~.. !tllt>.':~' ..-li_ ~.IIIo..'1;..;;t'if*'jjj1l1oSOllorllll<ll!lBds'" ~~~.o;jIr. . ... pt\C!ooell>i1l1'IriPa'3 M\i'~m.dO ~duiI_.al.tI1iitl1ii..P.I!a!!oI_. .or :_......~_... . 1I1_n__..1I1o~.111.a%J!'_.!lIlIi"no ownlQmal..._1I1oNll_'* ~1I!f"""'nt"". ~al.t1. ~~~==~~"'I~:S="%"-"'~~~= i" . , adtJtioM ... praceldS. IncIucling arnoiI'rts payabl9 u arty 1 ce' patict I sll hereinaftei to.."CQ_. . lb._lIB_and CUndlUOl1I 0)0 Ill. _ __. ""rtcftllls __t II. _ .glllSl1lel'lt, gullnlllll', prv_ "'p...._ or"""""", _... b....ItI. su,o,_odQIsnlCl/pl;of.........'" .flldo conlr..,...hkl1 was ....p_ly lIIlod I. pilar to BIJy4f'c """"ution h.""". BIf\'Ol' fIloblGll: 16 11. .19fS" Daled; SaIIor'~ P:Irtyl: :_~ rn~ By ::r-.-11I0\'{\~~ IlIMpIJ Bille awnor9l'pll'Iftl!If".BIBIlI. : ~~=/-. "'1_-""'. 1iIaI*".If_MpMnaf,lIfiIIlrwf*;;h. ~ Rn ~orch 01! ',"27 ;;lIItI fIi tsiIiii ~~iCRh~TD A :'1Q55 ~ QXI~ .1MIXlX'a~Cl\IMpIaCIoorlHlftlO$Sl!I...atJU O1bI;rUQtlSllaM1l18 ~l!olDClllllGu.""~iIMl'ftlI..speaIJ IICtUlI<<1lOtplll&l!lQl w~ - ~l!Itllne -.. I!~~'- "'" tiarM Bdt:I-~ """"" !.Sl\-1D75(1II3)~~.CnftdltlmllllSallr~ VaIlOtIIISmM P9~lClfJ -"~ .~'Ij<illliiliiii:,k_,"" ..... ..~ ". 6. SI!IIer may held .thlS Secunty Agreement or it may IIUign if for wlue Do The CT Grgup/EqtlipmenC Finanang. Inc. rclr).. If ~Ien'oes 111 hid ~n thl!l SecunCy .AQnMmenc m Q:r~ then aft8I' 5I.dt iIUlgl'Imllnt (a) C1T,. aaagnelD. :lihall ,')l"Y"~ Ill" rights on<! ~.of _.Iwlreundor and" <II~' &9_ "'1'....._.........-. .haIl l>e' od Ix) haYo IIe1!n __ 'io Ci'T _the..... """" and oIroot as if err wota an origimd ",,'Iy h.'<I<I: (II) 50<'0' .""', noI bO elrs ag<nl far any PUrposes: (e) Seller .11aII no, ba<i. any power.r ailll1ctity 'a<:lJong. "" _ry lI'" 8e<un:y ~reem~nt or.". filiated d~ (Sf instrumePt irl any way (e.lCCept uny ",I~ wa,..,,, Qf ~~ ~ wf'IiI:;h .. eJ<du.MlIy between Soller and Buy.r...d slid nol bl!'d ClT or _ .ny ar 1lvyef$.""Clr. riQII",.r .ol;g._ u...... ,h.. $ecurilr "'g~: and (dl S..",.. wII _ .. _ """"'.... ..- ..., aoun.......... of any. ......... I. """ ...... _, 5o<1er. includmg but n~ lilnole<1lO ~ "'~..... dol_ In lhe ~ .... ill. like, dlreclly with $eUo,. .... ... ... up any .uol1 _. """"'.... ""tor1 '" _n\1on:Iolm ~ err. Seller ""'eby ~g \0 ...m.ln I'esjXJnsible dterdQr, 7. Buy...ocImawleOges lII.t err is in "" _ _ed I<> 0' "",.__ _ _ Crt' ~ no "'owledge ar"'_lon as ,a \he _.n ... SlIi1abi11ll' at \11. CoIiIl."" ''0' 6uye(. 0.""",,,", ""d ClT. d_ to p.",:l1a.. th.. Sec:llnly Agreemanl fIllm Seller. if so ofI'ered. will be _. m ...ilO_ "" Buy............- ~m.n'" and """"""'.. h.r.... inciuolng Buy.r's ""llfHS_.,,~..1 noIle1_ 090inst CIT any "'...... ~....If!:<< cau.-. ~ '""l' now or In IIie lulu", h.... ag.ms! SetIer named below. If 11>$ ~ /l9feo....n. .. _ IG CIT. II1en alt1!r augnment 'e err. B_ wia make Oft paymentl direclly l'> crr ",...en -= '" C1T .....,.,." ....... IG erne designate ,n -"lI t. Buyer. ." Buy<< WiImIIIIs .nd rap~n\$' I.' ..... B...... ;s juoIIy 1n..eltJO to SoIIor for IIie 1\1II .......1 '" 'h. loreg.lng _led....-.; lb) that, .....pt IoJrthe""""" .._. granted h"lllly.1Iie CaI1ater.IIIs _!RIm an. win be kepI hoe''''''' all ...... ...1.... .....my inte.- ~na encume_ (ellhat no tir>anc:lng _I ....nng IIie 6oI0t0..1 ""...y ~ i$ Q11 fifo In filvQrd ~ dtn8fman Seller tu: If such omlr ftnancIng stamment II on fife. it; will tw: wrmmatv4 or ,._od; Id) lheI 01' ~ """,lied and _IS mode by a_III any __ c:te<lICor acall.""n~ .taI_ '" .opI/wIion "" Q'\>O~,......... """"",,pcf3JOOUSly """... ..baquri Ia III. e.t;<Y1ion 01 mlS SocuOly A~_ Willl IOOIlO<lI<> "'" Itao1$OClIon ""' ami shall be ""e. _. V8Iid and g.nuine: and (.1 auve' _." ....lho<ily Ia enter m(Q "'" _ Ag......._ and In 10 doing a Is nol_liI1!I any ..... or IO!I\I8Wn or "11"-'''' _ thu'd fIB...... and ~ has _... ...,., _ as may be n""""""'l' or _rapria1e Ia make lhis SOO\UiIy _ .!noong ~nlt s. Buy<!< ag.ees: "1 to .oIand at S.yer'. own cost .ny _, pnxndi.g or c:lain> aft'<<ling Of arising fill", lI:e ColIoWoI:lbl 0:> 00'f (o!O$Ol1Oble alI<lI1\eYs' _ (all- 15% '" lite unpald -... f not pmn,.,Md b7 I'WI and other ..;Ie..... __by S.11ot In .nforclng Is nshls _Buyer'S _ (e) IDpay ""'1t1IlIl'I ~u _ __.....IIcon... 1~1!Ii and ~ f:lutUic. (Jf prM1Ie CMrgeS when IewIed at~ against !he CocbIeruI Qr tI'li$, Sl!CUIIty Agreement and !his ~ ..... ""...... IIie _ of 111I. SecuoIly Ag~ (d) that K.certific8te 01 tme is required ... potmlltl!d .., law. B"Y"'__..... ..nllIc:ato _11llSlIO"l1O 1I1.eo_ _ng the.....,;ty'- 0/ :;ilIerll1on!a.. and ;, ""Y ",",'" "" .....1IIItlg """"'""'!IY .r""l>OCllem to ptllS8M> .r ""_IIie....fiIr ~l of SelI.r, (e) 111.. Bure' wi! l'.oI: Ml~. fail to bWlp in goad repaIr. sec:rete, arwfChout tfIBi prier written erJIIleflt pt~. and ncxwlll:L5t:i11t!lng Sellot's cI3Im lO pOlCMds, ..I~ ...... land. encumber or _r alY of IIie CQI_: ~ (I) .... Soller '""l' entor upon Buyer'. prernioes <<w""""'erllie CaIlaleral may be _ at .ny ~Ie line Ia ;.sped: !he Collateral. 10. AI risk d loss, d.mag. II>, _clIon al or .rioIng WJn1lhe Col......, -. :at 011 ~..... be .n BUF. Buye<,.;o procure 10_ and malnl:ain 81 Buyef. ""JHl""" in....n"" llllO"'$t all _ '" loss or physical <lamage lei the C~II_ '.rllle UIInsu",bIe wi... _loJrlll8lile orllW $ewfilr -'9-' pi... _..~ Insurance................ 1"""",....111.""", In__tland agaInstsud1 n.1oi...SelIeI' ~ <QOCIfy. """ -.pIlOl1\lllIY -'Or..... oorq.._ with a _ klng-larm rnongag..en__ _ oIl..."'lI.... pa,..1eI S.Uer. end """,iding ~ _ not_ _ 30 days _ _ of ""'_= eaon wch policy _ be 11\ Ionn.terms and ........, an._ I......""" earlier> ..otiilI......, Ie Seller. _$ _.... '" poIicIeo In _ ....D......"""" _ not be. -.. auyer'S ......9 OllIigatiens. .... 10 6_. -...- In .ud! policy. no.... or am...... al euy., ~ any ollis atli_.. agI!I1ls, 8lI'4l~...,..."~ob.li>'.. _, ~1heabllg_ a.'1Iie "'......... ""' 1I1e fui "mo,." "'_10>>. Buyer I1eo'eIIy ~1IS to Seller any "",n~"'_ may _. payable under an, such po;;;,y 01..""",""" In<! IrnM>cobIy canstilutas 8lld appoints Seller asBuyef$ ~ In fac:t(allo 1Iald each adgina1.in....n"" poilQy. (blIG mak., _ and lldjusl cIaI!n. IIllder eac!lpo1icy or.....r.l"""- (e) to ma1ce _ b' ""lI' monies.~ IIlOY b"""",.payable under ..ell and otI'Ier'inStance em the CoI~ ~udil'l,g retUJned or &n!ii1"l"lGd pteil'l'liums. 8n<HdHO,eMGl'S6 ~yer's nlllms on any cIIlIck. d<Oll ar Olll.r in:iIII/merlI ......._ in paymen. 01 cia""" or l'llIwned ar""""""'" """""",,".lIlldlir eool1 policy "'" ta lIplIIy Ihe funds ..lbe..,....otal m6 _..... awIn!Ill> SeIer; provided. ._. -.. u...... no .bll;alion Ia do ony a1l1tel'o~. $ll6uldlluyer fail to Iu~ wchlnsu_ poIIc)'lo ....... <<.. 1II:iIl!oI. sudl policy in Nil 1'0..... <<to ..,__m;,_...ln part_g _.1I1en6_. _oul~gar~lnydafauU orabli!)o""" ." Buyer. may (bill "".n be.nderno atiGgaIion lO)_n"'"'....._ _noellllll:pay lIIe.jlI'emlum _on """all <II Buyor ... c/larg.lbe .....Iom to Bil)'<n i_."" ...- .... S.aml)' ~rit. 1bolull ........, of any ""el> premium paid by SoIIe'''''.11 be oayoeie by euy.r.""" ......n<!. and 1>11.", ta paysamuna11 ~... ...ntal dela.U under IhIs Securil)' Ag.........m. 11. A, """ """,snt .- or U.is $ecun\y AgteM1ent Is IlW Buyer '"""" all Its pay...... P"""~ os agnoed .;xm. NsfJ _ Is 1lIallf1e ca_ _... 10 .... In gaud candItiCn ald tidequale SOCIlIIly for 111. Ind.btedn.... Th. leItNMg ......ents eI dtIlaullllder lI1i> $eaJrily Agnoemen, wI1lc11 WIll .- Selle< to _ such ac:ion under tillS Paragraph and _ P_n 12 ...___ .6....'''y: (allllrf of ~yet's abrrgaliaml to Sellor under.ny 39- _ Sell.... not palcI pmIpIly when clue; (Il) Buy..._...y 1IIlHI>lf!ly.' proviOian~. ...alony .ther_ er agresnenl_ I>; Buyor to _ In c:omecdon _ II1It or any _ _0: (00\ B~ dies. - "'.._orceasesl'>do_...aQ<>ln!lcancem;(d)RIs_JIIlIn.Cfll18lBuyerhll$~- ~ mIlIlolllling "'_ "'!llIlIlin9 ""_ .....IlIa... (el any <II IIIe CeI_ Is lost or ~ (f) a peIilIan at campl.,nt ." b.."",pll:J ""fot~......, orteaflFllllza1lon orfOt teDel unCII!' any InsaIvency .... is iUed I>; or acpI"", B_...auycr _ its -il't 10 ~ il$ _.. ""'Y"",",no; (g) p~ of Buyer.. _... ora _I. ~ for Buy." Ihl_rSoliMln good f.jilfl be_!he pmsped:alpayrnenlor__ is im",,1no<I arlll ~ IaiIl1 believes.... Cal\;lWal Islnsecun>; or 01..... gunn1Or, surety <<_ furBuy1:t'Oies or aefoullsJp Iny ObIlgoIi.n or 110\>'" ..- <<anyg_a_lnca.neclJan_Ilis_Is"""'-or- ~1Q'1'S (.oUUl SIariI ~..~lbhr~nct "'..,.. c.:.r- hp'Zaf:l ~''''~~<""II._,,",.,o ,,-' .~ ~.""",;~' ~ ~ ~ . ~ , '~'~~"~"""""""';lliil~",~;,~' "".~. " . . If BU)''1<.h3lI be in _ ~nclel'.1he iMebliod...... _ 4t--a...d ...., aM Qther debts lf1.n owing ~ Buyeo'lO ~ W1Cler till< or any _ presenlor!ublre egraoment: _, if SeIsr _ .0 eIeot beccme _iatBIy due"'" p~l.. Thi$ ~Iora!lcn of aIIlndob_ if eIeWld by Seller. .".. be ..l!ie<>l1O aU oppicaIlle ...... lrlckIding ..... at> 10 rebale$ Md ~ds 01 uneamod charges. 12. 80 101>9 as arw obigldion$ ""' owed by auyot 10 SeIer herouncf8r. Seller $haU have .0 the rIghlo and remedies provided by 111.. SecurIty Ag/Hn1eflt and p_ . .....red party lIl1dar lhe unif<lnn Commerdal Cede and -.y oll1er aPllfi<:able law. __ ~ 8<'Y"'. SeIIeI'. rigIlts and _ ~de but"",not_lo. m.llborofcholces. euyerllClcllowledges thai if" _0$ __ Is justly enlIlI8d to do ..llIllell'" Iho law_lD lIYOicl.....1O ""'if and .1"1lD oi>lllk! for illIdf lite bendi ollie Darga/n onclel'1I1Is SecurIty As_ent. CcnsIquen\ly. Buyer ag.-.tI1a! SeIsr, amilng.ItaOlt\or;~h\:; lIIl<I r.med.... n\a)'~ or ItS aganl enter. the pteml.... or """"the. land ""'.ere IM.CcIIIaIl!ral. 1$.. .1acaI8d.. '.lIi1dwilhoUt. r.roovil1\llhe render any equipment wIlich I< JlOll of 1M Col!atenll un<A$Oble ..-. ..... po.......... oIl1ie Ccllaten'_ ncIIce to anyO"" and _juollo;lal_ 01"'1 IlInd. pnwj;Ie(I:Wch seIf-help,ls darNtiliithiNt lmlch oIlho """"" ("""".i.g adIioJ <<VI_eel _neI> 10 a 1....."11 1M time 01 '.. : n...lo.~ I. ord~ 10 olfilid.il:le1f1f1~ and 11I_ remediet. SeIer mustlleebla lD enter VIe pmmIses...~ln or ul""':'"tioh \tVr CcIllli!IIIIIs \i;l~. BUrer. _. ._1h<II SoIIar '" Itself arlts 1IgOIIt.1IlO)'~..nOIlctI"'8II1"'- - WIIhIllll j,.;tlClalpnlC_ 01 a., Idnd, __ 8II1P-"'- any 1.1Id (IAcIudlag ao;con....and ~ ~~~. 10- 0' otb_ u_ Ih9 NO! or .ppa_ _lnII of Bllyllr... any.dOftt '" Buy.,. vdle..1I1.:Col...ril m., boor wIIoro S81....bol_1h9 ea_ _ boo .ed. uoII1lI8II1 ,"-""blefolU with ....peot fA'" CllIlallit!lI'lIIc!'any "",perty _._10.1,," Cal_~ _._D. nndiir 1BI'!""b1e, dio-n...ct oDd ........ al GcI"'lillom aay DIllar pn>ptirl:l'''-''; . _h..man.. or any 110m "'\lie CoI...raJ. Sllftt'llfllni>thlnclera!'4eIay",illlEr or Is ~ In """ _1ll1<I1riI. if requested. eso!sI Seller or it; l\9f'IlIl. ~bIil1\l 8DdIot.~.II1eColI.IlemI. $<>!Ier mayJequlra Burerlo _~I. tho CoIIiiIillal.lIlId .....mit 10 $oller 1II a",""" 10 be d~ 17i$lllOr wh1cI\ls -"nobly conveMnl: III both part;e<;. Burer_osIJ........ UI f\l<\hOr rights 10 __ aflheiCdlatlHal ijIIOr'defauIt oIld aII_lbr damages..-IO cud> ..mcwaI. di~. entarirlll 8DdIot """""""'''"''' 'IlII> securIly InIenISl 9~ her8br.haI continue.eIfeOI/lIa Irrespectioe of any rdakin!llllld mdellvelyofll1eCollal<llalIO BU)'oruntil 011_ .eotJ/l!d .....br "'" 1uIil' paid in ~. 1,]..... 01I1erw1se p_ br law, Il10 ""lulremeet cI ~IE n<lIIo8 of..1e or _ intended Gi$llOlllllon 01 ""Ualetal $..11 be met " such _ Is mailed. _eprepald. to the Ild~_ of Buyer ."""" he.... Ell ~ lOll day8 befOre lite ~"'" 1If lIie ""'" or lflSpOOilioo1- Expenses of retaIlInlI. hol,Mg. P""",,",I !tlt' saJa. selling iI!\Q' 1M I'" . sh.11 I- re_Ie atIomers' _Cat ,_16% '" \Iut unpaid_I natflltll1l1i11edbr law) Ill1<IlilI\eOi'!e9al _.... Buy.r U/ld.r&tl....1I1at SeIa(s rights _......- ""d llQI~ end Ill.. Bur.r..- ",main fUIy 'ilabIa lor On!' delIder>cy temaInII1\I- dl;pcsition ",llIe 0;lII:!Ier0II. , 13. Sellermayl.ltS.....dlllCl'01i<mWllilleadafa~or...... _...auy....._ Nrf.uch_inaparlicul.r i........ or of a parlicular defauit shall not b\> a """"'" 0/ lltl1er d'- Of tho same Idnd 01 d._ at ..0Uler ~.... Ilo mocl_. or eIl..ga 1. 1I1Is Sec:uriW Ag1'eei\1efl1 sh.1I bhl S.1Ier (aII..- Il$$lg/lmont. -Seller," os slated .-. ...... 'ClT'J ...... ;nlo'l1dng signed br Soller. Nv ~ agroemenl_ be binding. 14. II pemjI>>:I "y law. Il<Jye1' eu_ _ III lie a finandng staIen1entwiU> ....".a 10 Ihe CcIlall1r.lllli\lned ~ ~ Seller. _ to 1iIe ~ cadIon. photDglaph or _repraduction of 11110 S8C!lIi\Y Agteement or of. finendng ._L Suyor w_a1I~ Seller may cam:ol.~nt...... _..dlill.in SViCI1_assarlal.umbers,_ofr..st poymentand 1M Iik4. Nrf p_ hereof ooncrary to. I'IOhibb<I br. orllMlfi(lunder .ppli<:ldlle.l.... orresu_ sh.1I be InoppicabIe aM _eel _ _m, D\lI sh.ll.atlrWalldal& the..~ pIOVisIan. _. Buyar _DdgO$ ......pI of a \nil copy _ ..._ ....p\alICG _ ex>;apo: ""'ere II1e canllllCt oII1eIwi$$ ""lul.... "Buye(" lIlId "Sellel" ..... mean _ lIlId "coII:uredplllty" "'"IJOlIlive1r aM lrH:luda 1118 h.l... --=-!mi. or admin_OIl. _ or ..slgns.lD _ p:lIlie$ but nqlhl.g hemin _ au1Iiorize su,er 11> 8S. tills_will' Ag.-nentorilllrightli..and1l>tI1eCal-.r.. J:lole!ll... ""0111.. e.._..... fIIll"ld... eelflelOi~(>t"Ya.pPI\Cllble.........theBuyer.~ haw 110 r1ghUl>a bielll1.j\Jry h any adlcn or proCeedi"ll with """'""'..... h ...u"-' with, or....lng out cflh.._oiW Agreement, arany_dDllvered p_to.Ihi$$odJrIly AgreemorIt. IfmareVlal1Q1laSuyer__lhls_rill' Agreeman1, tI1eir aligatioca Ul1der tills Security Ag......,,~ - be Joint and ...."". H011CE: Do I\Ilt aselhi. _la, tnnaactIa.. lor ............ tamilr... _old P<"l"'""L For agrlc.1IwaI and _ __ oubIocI to _ or S_ ntIu1at1Cl1ls, contIull 1.(1)1 <OUnSOl 10 dololllline d\lCWIIIIIllolIm """,_DoIa. Agr\ealblral_ ~ meBl15farmlng. includi\g dally fannlng,lluI ft 0150 mU(fe$ ""'.....porta1llln. harvesting. and fJKil r" Q af farm.~. or fcnst praducls if ~ il1l'af1SPQrtBd, ,harveSIed. or ~ : ,"'ed is lann, dairy, or furtst pmducls _ or bred IlY lha ISOr 0/ IlID oqUpmen\ iW!If_ II does not 1IIII'Ilt. lor _ to a logger who h.~ ..m.... ...... _. or a 0CI1IIBClar who ~ I;Ird or h.rvuts piDduots 01\ _ ...... !aim- FOR USE II COI\\MEACW. OR BUSIlESS 'lRAN$AC'I1IlIlS IlllHE FOI.LIIWIr'B STATES: AI8 CalI DC(1) m K';/ _(1) IloY He Pa(1} ......1.010 fIa (1) 110l Maile U1m NJ - ND RI Ari< ~nn(2} Ga (1) Iowa MIl ~... (3) . N Ii! (5) Ohlc S C Art Dol (1) Idaho _ ...... Mo (4) NY 0l<t9 S D (1) Do not \IH far ""*'" ,*,1cI81n1lSl1dlons. (2) Do not ... If ..",,,.ion 1$ "DaD or.. (3) tlo oat use far __...rioIe or c:I>lIW11OlCI8l _1RlIlGeCIlOn" (4) lIIalor....... vohida ~(l3Gh prica .....-d.S7,!i011dfOr .. nan-motarllllhlcleo. l6J Do aat ....1cr_~ or apoclIi maIlilo equiptlllW _oil.... Ton. Ui>Ih VII') Va(1) Wash ~Va{S} v.l$o (1) WyO ~1075 1<lR)) Somdt'f AQIM~ . CMdIllutAll--S* CDnhCt v~ SbIABa Paae:!! lit 3 <~ "-~ PARTIES Debtor name (last name first if individual) and mailing address: Morgan Hughes, Inc. 1 Park Avenue Mechanicsburg, PA 17055 Debtor name (last name first il individual) and mailing address: Debtor name (last name first if individual) and mailing address: lb Secured Party(ies) names(s) (last name lirst il individual) and address for security interest information: Otterbacher Manfacturing, Inc. US Hwy 30 North Crestline, OH 44827 Z Assigneels) of Secured Party namels) (last name first if individual) and address for security interest information: The CIT Group/Equipment Financing, Inc. P.O, Box 27248 Tempe, AZ 85285-7248 Special Types 01 Parties (check il applicable): o The terms "Debtor" and "Secured Party" mean -Lessee' and "Lessor: respectively. o The terms "Debtor" and "Secured Party" mean "Consignee" and "Consignor," respectively. o Debtor is a Transmitting Utility. SECURED PARTY SIGNATUREIS) This statement is filed with only the Secured Party's signature to perfect a security interest in collateral (check applicable boxles))- a. 0 acquired after a change of name. identity or corporate structure of . the Debtor. b. 0 as to which the Illing has lapsed. c. already subject to a security interest in another county in Pennsylvania- Dwhen the collateral was moved to this county. Dwhen the Debtor's residence or place of business was moved to this county. d. already subject to a security interest in another jurisdiction- Dwhen the collateral was moved to Pennsylvania. Dwhen the Debtor's location waS moved to Pennsylvania. e. 0 which is proceeds of the collateral described in block 9, in which a security interest was previously perfected (also describe proceeds in block 9, if purchased with cash proceeds and not adequately described on the original financing statementj. Secured Party Signalurels) (required only if boxl") is checked above}: FINANCING STATEMENT Uniform Commercial Code Form UCC-l IMPORTANT-Please read instructions on reverse side of page 4 before completing Filing No. (stamped by liling ollicer): Date, Tim~ ~Iing 01' lstamped by filing olli" c:; < .Lie:; -oX:.-~-,- ~ -J-..r rncom -. - 5- q I 'if ~g;"f,; (J)~Z9 C"'v""' -<1iIt-tO ,"-..c- '<0"'.... I ~aO~ , . x~# '-e 1ft This Financing Statement IS presented for filing pursua~ ~Ie Unifo!::..m.1{ommerclal Code, and is to be filed With the (check applicable box) ~... II o Secretary 01 the Commonwealth. j_ ;gL.Prothonotary 01 C "1Yl b4/"--Gt-'\ d o real estate records 01 W~'~"","_...,ri' - " . 10 Number of Additional Sheets (if any): Optional Special Identification (Max. 10 characters): COLLATERAL l,_ ~ ."",L.~~,,, County. County. Idenlify collateral by item and/or type: One (1) Otterbacher 20' Finished Food Trailer, SIN lM9FA2027S1219102. and all tires, substitutions, thereof. wheels, attachments, replacements, and additions and all proceeds Za the following real estate: Street Address: Described at: Book for o Described on Additional Sheet. Name of record owner (required only if no Debtor has an interest of record): of {check onel 0 Deeds 0 Mortgages. at Pagels} County. Uniform Parcel Identifier Title o Icheck only if desired) Products of the collateral are also covered. Identify related real estate. if applicable: The collateral is, or includes (check appropriate box(es)). a. 0 crops growing or to be grown on . b. 0 goods which are or are to become fixtures on - c. 0 minerals or the like (including oil and gas) as extracted on . 3 d. 0 accounts resulting from the sale 01 minerals or the like (including oil and gasl at the wellhead minehead on . 1a lb RETURN RECEIPT T : R:! 1.Vu. c.I.\ G-cc.......pl CC(~,....,{A,. ~,n:Q<\';"'a, 1(". t.u. U IOCou.l Otterbacher Manufacturing, Inc. 1<"" :< ~L\S5 ~\--., ,,,,," c~, Title ('fv-; MG0: 4 STANDARD fORM. FORM UCC.l (7-89) Approved by Secretary of Commonwealth of Pennsylvania FILING OFFICE ORIGINAL NOTE - This Rage will not be returned by the Department 01 State. REORDER FROM Registre. I 514 PIERCE ST. P.O. BOX 211 ANOKA, MN. $$31J~ (6121421.1713 ~ ~ ~ , d",~' Assignment to be Signed by Seller - Assignor Te: The CrT G<<>ulllEqulpment~. Inc. - '~CQntmctbelween~"!I'A:r1lMttr'Jl"'V!YMV 'IMl'lU'!411iJ 1IlmNv.~ TJII'r .. Buyer. . . ond under.llgnod. _ ~Ii~,~s. '9~ I\O\/Ing. _nt\llPllidbolBnCl:of"0S.11.... For _. _ tIoldeI!Igned l"Assignar") hl:lOb)' _ and "'lgns..il1e err G""'I>'E'l"\>mont FllllllICIng, Int:.. Is su<cc...,., ..d...IIll13l"Asslgn"'. ..............-Cll!IInI!:l.~.. l<lQOIho.......... rwll1alOl. AssI~..riSl(,lil.and_Iil1"" =.::;'''''' 1lV'~ described ~Itoo.._ -.. oI~f.~:....._...-d.......""""'lII'Ir9u'"WllYe' ._, jno;Iud;ng the rV1l'" coIloc1.lII'Il' lII'IlIoII'.io\lA".",,;ciue and III _ d""... \IIll_ OlIala _. In mS""" or AosIgnee'. n..... 8111)' """ pi] P"""""d1ngs m~ inIghl___ M;1<1"" ......,.. _ 1Ilc.._ "'"' III'Il' """""..."."11..... gue_. waIveIlI ..,d1cr _ -.. ... 9""'0. ....i:llbl.._the.. e~~_.~. and,........... ... ....0Il8CUle<I.. . .. .... """'..""'..1I1&""'PIIW. ..de&cri.... ..Ilod.in....._ .... ... """ 11I1_.... !nle 110m dQIo....... _ 1II'IlI1XIIIIlen:Ioim6;. <Igpolins, ........ add""'...., "'""""'" ond. Clh... _ond _ecnlaIned_n !ll811uBand ~ ...cariIroi;t"""'pr....~.. .~bl.'l_llIIdilOllulatloM: lhe p",..". _10 b:l1anc:e __ Is _ IIOJlI'CPOIIlt ha&,_~~ tf> auyor.iftorllio ~ 11I1'" dolfio....fcnl! IleIcwIB saII_ry~. and haa -ac<:eptI:dll\' 1loJ"'. and..:~.lir...mco"'pIJ"""'.lI..~wltiI~1!leIeW; \hi .....c:t CClISliNl!oS lnIwII ........... '" ""'""Ilde a WIld _.~~jOflll\<lncunillerOcl_lD or lril....lli(IIlll\ep~ ........ 1IIenlIl\'. _ agaInstBlI._1r1i!i119o ~"" erBl1)'!_8t!iIll1"'P~ Ispoim_....~j'_ or "'lJIIIMon"'porfecIlUCIl.....-noldllBerlen.II1e_. ."""....... _PIIsljld.:.""".lIdOWn.... JIOYI1IOl'llO.. .. '..' _.bo..n madein_'__~''I''_''''llVequlprnenllll!<M4''fIf. .""""_.... ., ....._.BllvIad.1I 10;_""'. lB.........". A!!Ignor _1_riIY _ ..... _ _... "'''' ottt_ damll!l"'''.__' """~ _ovS' _. Inr:umld I>l' ~.."resultgfAsstgnor'o_"'''I'cI'lI1e_'''', '1l:IaIg"""""..tit"'l\'. .",....... _.',....Ilb..; ..... ":,......der!:!Jq. _ ""_ ~ ta 1I1e.....""" -.. <If~ appIlcaliIe urldO\lrlrVlIIl(aioi1el1t 0IIWnM.' . III'IlI ~ AssiQl'Ol guotOl1Iooo the payment P"'"""'l' ..loon due cl'the am.. ~.. . cr. oadJ."'" wmy ._.~ paysbIB.me< IIllO contr'ac:t.... the pay1I'8IIt on clem""" afthe enbllftllilld boIance III the.... ill_In the_ '" Ilf1J' _'* by BII\'BI' 1.I1d., the ""ntJact. _lira reqo.;mg Aaslgneeta """""'" lI!I8Inot 1l<i)'W... "'" cI10r _ tit:any......-y. I. rhB """rlI1hatAsslgnee _ _ thalld:llgn,.-l1oo .. may ""'"' breochod any <If 1110 """,. _ (lndudln!lltll guaflll1ly <If ~.", Ilf1J' "'Its.........uea -. """"'" '" ""':?l- orll1e S"'"""'V __'MIl. upon AUlgn........- pnxnJlllr rep..mme'" _ far BIl......nt.lJI8! Ie th. u..-_ce lho<eol, Inc:Iudll1ll_ -..st;pUB/lY...,..... afccll_ _1....1rancpc_ lI1d_'ncunedl'l'lWigno., incIlIdio!.l.....___ _.nd 0lIIlts..... ""l' """""'''Y refund 1'1' Asslgnae of _lInOnC:e cI1argea. , Asslgnor_lhol_mayoudltb _and _. I'lolatIngta aU popor..sIgned la^""i!J"Oft and moylnAosig..... """'" ..dcrse~~-1IncI................- _gnor~"""""oIr-1!" ..........,....,..g.._..., _. ~ lI1d I'OIi<.a ol......8\'Il1Ilftl..... ...-...10011 ~ ~. new. or he_ sIgned.otcoPtad. ancIClroe<l or.,..;g...... '" AssIgnoe. _gncr_"I~lnI~$!!.'U.... 0" any Olhjlr........ ....:noli.... _1...., by I.... .ndAssIS..............'_ and_.. -....may"'liIl)'lIme'wllllllul...,...t...""s!lPx>r, wlthculn_lDAooignD<' and _ olleding '" ImpBIrios the OllIlgaden. cI' AssIgnlir............, d. ot'lf a! !h. fcllCl!iring: la) ""'.... -od, modify. _e ... diool1o<l10 "l!\f. .bIlgatico .. " IIuyer or ony "......,. oIlIlsaIod on tho _ .' "" ""~ accc~ng .... '" !JUBIm1IY.I"lhe"'- _-s"li <1>) tJ<'.GOIllparliBlpoymontsaflhe_OIIIIgalions; (OJ acceplneworaddlllcnol-' _...ag""""",Il>~"'er.._..tIIo_,,,lgallons; (d) seItI..IIlI.... (ill ~ ar law... _~ compound, compromise, c:oIlod ..lIquidBl. 011)' of 1M '''''''''''' oIlIigBIlcno and 1ha saeurity therefQ( it\ :Jrt/ manner; . ee) CCMOOntlD th. \r.o1O/OI or O!tum of I8CIlItlJ BIld _.... hold __ I8CUIIly or 9_'" the contract ..ligatl....: (1) __._",_ony_arguanJr1ly;.. 19} 1licI............. lillii1\' ""'" "'!he ""_., <OeIl1l!y lIncIllJlP!y 8111)' "'""""'" ..... ..13fly and direct tIlo order .... __ "'''''.' . No pay"'"", by "':=....._ oIJall-.~nor, Ily ~ or "",""",,,"Ill '"'l' __ Ira'" ~__tho ~ont"'d af"Il\!YOI"~_"'A:ioIlIn... U......Clhtl1lvI.._u_...JlIl"';_oI.n..~ .-....llI1I, .~ .........lIIllIinocl...._......"._.. ~.hOllll8b..~ ...~.. as_fer tho ..........anco~..-..::"-".'.""'""'- unllBr'uiO"_..- .. "'""......"""....tlr1iIO< Bri~ IIlliI bePif;.:l Ml............wI1haUf_ _ii'.payfr!~~III1ll~;L~iO,_~: .......;1!1=1\'t~~~ ~..abIi~... .."':.",' lIfAJ'iiii(ir'..:!.c..u.,Otlllallld~1ie b!ltlnilloeveml.m:__u~ C5l\aS!QnOC-. fJ:J!t". -~.... """".' "'-flE.' . . . . ~.'. . ""..-,..... ....................~. .. ... . :l!!!!il.'. ..I>iIdc..ii.....I1ICti....~WIiuI~"" ",may, ~ ...... ~B11 ~.. . ... . 'Iii, liiidiililnOl. wlII1WtlWllg..... ~'WiIlll!ri_ ~ 011. ,~~crClll1Sllll""1:~_dlhe".. ~~m1lio ~"'ma45'_i.ltoo~or:, _~........_Iy. Aoai!JnOO'nknowledgeoUny .oflll'l'b_.,orllOl~..linyallli._n!l....1 OOlCCl\stiidlietry_I>l'__. PICpoIty_l'I'the___",Buyer... '2;/10;;- 1e9S" llalcd L/1 S 19Q5:- SoUo...-Jg.." , ~ . ..:.""~ ~, .1Nl"" '~tJlptMr.III~. 5-8A-a87 (!l1lil0) AaIIlInrMrn ICII;JII SlQned n,. SolI..- ~ i"811911i111 ~.. ""-~ ~. - ". ''''''<L~I_,=&,.,.,._I. Mor:Jan Hughes, fne. I Parl( Avenue Mechllnic:sburg, PA 17055 RE: err Account 8649 Augu::l <, 19% The CfT Groupl Indusfl'iaJ Financing, Inc. SIJJle 600 1520Wesl Fcuntainhead Parkway Tempe. AZ 85282 602 764-2300 Mail109 Mdress: PO Box 27248 Tempe, AZ 85285.7248 Gentlemen: Reference ,s made to the Se.;w;cy Agreement. da,ed 02115/95 , between the above deblor ,Morgan H:I~.her.. Inc. . U1C. as Debtor. Otterba.;:her ~famJ2~l.::tnrin.g troc. a;: Sel;.'1l.red Pncty. sn::1 TIlt" err Group/Equipment Financing, Inc. as Assignee (me 'Agreement"). '\fOU have Reqlll:sted and we jw:v~ a..<:rreed 10 amend tile terms of payment of the unpaid balance owillg l1Ilder the Agr::erne:Il upon the following lenns ane conditions. I. You oonfum and agree that the presenl unpaid balance owing under the.'>.greement is S30,O 15.82 ([be"TnddJredn~.ss~). , You bave requesl~d and err has c.:lnse!lted ie, extend your Paymenl :;chedllle as foUows: Month. to be 'Extended Pa~ment ."un01lnt Month E:rteoded to 07/1996 $-1204.72 11115/91 08115/95 $4204.72 08/15/93 09/15/96 S-I204.72 09115198 LO/15196 $4204.72 11115/99 3. Tbe Paymenl schedule specified in this agreement supersedes and replaces the payment schedule spe<:ified in the AgreemenL ,I. Except !IS modified herein, the Agr~ment remains in full force and effect. If the foregoing is acceptable 10 you would you please 50 indicate by signing this letter where iadicaled belO".v ;.nd returning the original to us. Sincerely. The CIT GrolfplEquipmenl Financing, Inc. ~~ Phil Leep<:r Portfolio Speciaiist II Tiue:_12 fVL ::late: s:I':f!?6 Date: ank Corpo<ation "I,. '1JliI!liir.oU STATE OF ARIZONA COUNTY OF MARICOPA AFFIDAVIT OF VALUE W. E. Oberlander, being duly sworn according to law, deposes and says that he is a Portfolio Specialist for The CIT Group/Equipment Financing, Inc. and is authorized to and does make this Affidavit on The ClT GrouplEquipment Financing, Inc.'s behalf; that the total value of the 1995 Collateral (if maintained in good condition, reasonable wear and tear excepted) is approximately $53,000.00. UJ. r .f)LJJ~ilu W. E. Oberlander, Portfolio Specialist SWORN TO AND~SCRIBED befo me, this /Ol/lday of ,2000. (SEAL) i) OFFICIAL ilEAl. MARy L. DOSTAL Nolary Public. Slale of Arizona . . MARICllPA COUNlY My CoITII\ Expires March 12. 2002 HBG\48816.1 ~..... , ~~~, "".... .~- -~ The CIT Group! Equipment Financing, Inc. 1540 West Fountainhead Parkway Tempe. f\Z 85282 480-784-2300 Mailing Address: PO Box 27248 Tempe. AZ 85285-7248 March 17, 2000 Morgan Hughes, Inc. 1 Park Avenue Mechanicsburg, PA 17055 RE: Notice of Default, Demand for Payment, and Intention to Accelerate Balance. CERTIFIED MAIL #Z 259 080 996 Account #4136-35607 The CIT Group/Equipment Financing, Inc. 's records indicate that the referenced account is in default. We now make a formal request for payment at this time. The following is a past due amount now due: Account # 35607 Legal Contract L/C Repo cost . Total Amount Past Due $ 50457.36 $ -0- $ 11352.98 $ -0- $ 61810.34 Past Due From 7/15/98 The CIT Group is now requesting that you pay the due amount on or before March 27, 2000. If we do not receive $61,810.34 on or before the above mentioned deadline, The CIT Group will accelerate the maturity of your loan, declare the balance of your loan due and payable without further demand, and proceed to foreclose and sell the collateral under the terms of the Security Agreement and applicable state laws, Any deficiency from the foreclose sale not paid by you could result in CIT being awarded a deficiency judgment. Any writ CIT may acquire on that judgment will be exhausted through all legal means. Please forward your check for $61,810.34 not later than March 27, 2000, so that we may avoid proceeding against the collateral securing these accounts. Partial payment will not cure default. Sincerely, W.t.~_ W.E. Oberlander Portfolio Specialist CC: Morgan C. Hughes-Guarantor; B. Van Horn; D. Walter; T. Oatis-Repossessions & Liquidations; File .,.,,:;-;.... ,.;:~"\ta.".- ..-:'I"_''!>_. ~" ......... ",' L . Prlntl:r nameandaddress on ttle revers'e'of this form so thaf we can return this . A:'~~form to the front of the mailpiece, or on the back if space does not peRmI. . Write -Return R8(;8/pt fleguestfKron the maJiplece below the article number. . Tho Rotum Roeolpt will oIiow to whom tho 0111010 woo dollvored and tho dato delivered. k;;;::7!~? ~ eS I r 41.(. 1?a.J< f111~ue M~~(l~,t..S1MjI .~ ~ rl)DSS .~ -...- M Certified b'lnsured DCOD 8. Addressee's Address (Only if requested and tea Is paid) i ~025l15" e D229 . Domestic Return Receipt " ~~, .; " ~ .ll' a' 'Ii; " a:' E' ". l)! a:: Ol' c 'ii. " ~ ~ " o >- '" c .. F: ~.r',,,,,,""_'"_ ~ "' '. ..........O;;;~, The CIT Groupl Equipment Financing, Jne, 1540 West Fou.ntainhead Parkway Tempe, AZ S5282 480-784-2300 Mailing Address: PO Box 27248 Tempe, AZ 85285-7248 April 7, _ 2000 Morgan Hughes, Inc. 1 Park Avenue Mechanicsburg, PA 17055 RE: Acceleration Notice Certified & Regular Mail #Z 259 081 014 Account # 4136-35607 Although we have made every reasonable effort to extend our consideration, you have failed to meet your legal obligation to The CIT Group/Equipment Financing, Inc. under terms of your contract. Our records indicate that you did not comply with our Demand letter dated March 17, 2000. Because of your failure to pay the delinquent amount due on your account, The CIT Group has accelerated the maturity of your account in the amount of $ 61,810.34. We must receive the balance of $ 61,810.34 on or before 4/17/00. Otherwise, we will proceed with legal action to protect The CIT Group's interest, including foreclosure and sale of the collateral under the terms of your security agreement. If you should fail to pay the balance due by the above deadline, we intend to seek all legal remedies available. You will be responsible for payment of attorneys' fees and other expenses as stated in your security agreement. Sincerely, L0.e.D~~ W.E. Oberlander CC: Morgan C. hughes-Guarantor; B. Van Horn; D. Walter; T. Oatis-Repossessions & Liquidations; File - r ~-~ ...,. '. Compi~i~Ii~",s 1; 2; ailCtiAf;;Q'pa'lilpriiilF"'; . item 4 ff RestrictOd Delivery is dllSirea.--'~" . Print your name an~t,!d~2!)!Mte.';erse:~."" -, sQ'that we can return 'the'card to you. . Attach this card to the back of the mail piece, or on the front If, space pe~its. : 1. Article Addressed to: /vtD"':J~~ Hw,'~ I .(/IA.C. I ?CM-.,k ttvelA.U e tv. ~et.o.\II"~~; f(14 I? o's- - 'J' d.~.~, -..,.,,,. ,. C~-'SignaiUre o Agent o Addressee i DYes DNa X D. Is delivery addniss dIlferentfrom itsm 11 If YES. enter delivery address befow: !. 3. SeMce Type \ ~ed M8I' 0 expiess Mail . D Registered tJ Return Receipt for Merchandise \ o Insured Mail '0 C.O.D. 4. Restricted Delivery? (ExInl Fee) . 0 Ves 102595-99-M-178jil ";.--':>"'7' ~~:~~~:i~:'~_~~\:~,~i:~~~;i~~~jt~~;t,~;~~~~5a~~2il~i~.~~ ~,~. .--~:~~~::. ,~"..",~,.,._u, - - , ~1,-lI'-'" c,__'.; lI'.orcan. ltua'heo. Tn~. eo.",..,. ~ehaninl;l~ C<r PA , ..... . . Guaranty To; QtIO._ Manufsduring, In<. """" 01 III ......ny 1IlqlHlSl:i \'OU 10 _ a1!dil to III 10 pu_ 00<UlIIy 8gIO<!ll1Illlb. _. rWG<. __ Md III oIher ~. (110.... generally -"1"'i"'J oIortrcm or-.Io oIo_with _IMIt,or called It10 "Campony: ond 10 IrWoe I"'" .. ID do Ol'<l in __ ~ ami of b.....1is 10 lICQ\llIlo .ach of '" ""'rftrom. - at III.... _ oIIlgor, J<inIly and.........,........-.,..y 1UlI-" you Ihal.... Campanywill My ant! p"""",,, l'OI'ancl porfGnn..lti;prKOI1I oncI_allllgatio",,"YCU._OI'chcI.ril1dirvol.jO/rlIor_. ab_OI'...,o;~ sedRd ,or t.mccIRd. rndIUt6d C1rvmBlunld _Ad ~ MgIns1y: ~lbat:lad will ~u tJt alh6rwise ecqulred by)'QV. i~ '" '"' _Idi\y 01' ,,-,"ooaIlII'di' "'lItr!Jsuch obfi9"""" .r.... t1ouIlidancy.IrMli'"ll' '" ~Iity 0111I1)' _-.; 8I1d_ -)00' hllaoringlo,,-........ComjlanJ..1O ~_orqOOClllly_.lCl P'ltCX\_nd &II..... duo ItId 10 _duo.. YO. from tho C_and III....... ...... ~ -<< __ _ mlll'''''- byycu by""""" of.... Companf5d_or_<>I"",.f1l1. ~ _OBI; and _to b. bound I>y.... ondomand .. Pll!IIiny -.... .....bUshod by a ..Ie or _ and or soc:uilly held. ...., Of _ _to.... nu. 9......"l' Is an Ul"!,,,_ g_ ofpoymonlond porw_ NoguomnlDr _I be""",-, <<dscIIaI1led..oiII1er in _ <<In pall, by y....faI1....... _" perfect.. .....a....th....-. of8ll' OOCldr._in:!nj pl'<lpe<Iy which _ "'" OIl/lgallons 01"'" Com_ ....ny ollIS 10 you,...ta ~ 1M 1'lllP"IIl'......-.;I by llUCh _tIIlt_ No._ horeo( _.. _ by'" ooadt 0111I1)''' II .1'1... NolOtmInaI!on _ be _00 _or I1OIIco _10 you byC<l1ilio<l mal retum 11lC8IpI""""""'" ".nlil"'" lem1inatlan _ _... "'" loss t/,., 1IO days _\11$ <<o<l!Ipt of Iu::h ~C8 or ycu:.r _aslD.nyClllllwho,,",,""given IUCl1IUllice: orolloct "",...nsactlcx\'- prior"'.... offedlw _ of mnnlmdiM.. ~of..._ notlaI oI~n.....t. ......._do......._ nnotk:o"'"""pOj'lTIOnt"'_ 8510 any nolo or ~ 1II9nod. 1KlCOpll:d. ...,..... .r asaIg:1sd to you by .... campany; any and aD ~ of.ubtogaII.... _lHmenl. ~,......-.... _otiO. llIany_"""_'nyol...may r-...""o;aatIer_ "!Pioottha ~<<1Itr!J 0Ih..- ""'""" dlrectly at Cl>ntIngenIIy _far "'" abIIgalianS a......- .....lIl'od!'r, <<ogainst<< _....,... lolllo CUrnpany's property (onCludlrig,_lmillllior>.....flOlIY c:al1alor-.;1t:r ~.. "')'lll!l, 8llsir1g _'11I._", perla""...... aftl11s gIlORI'l\y; aD llXIlI1Plonslll10 homei;lsO<l....1I1lI OIII'_.demlll1<lo.... nn1IcoO Illq\dn!d by law; ...-and _:.nd 01\\' duly an y_ FM (should...... clUIy e>ds1l '" _ '" Ill')' of .sanY mallv(, fact at 1hIne _ lo lhalluOlness .poratIO'I> at o","ilIon (finllncial.r lIlhcwiovl 01"'" ~'" 111_"'_. _new at he_1aloWn by \'OIl. You may at.." l'M II1lIfIom _ to time. _.... _oem; _out noIlce '" v. and _.-; orlm"",",,~ tho nbllga1lcn of ony .,.. """""""'. do any of 1118 1ol1a.vJns; (al reI1o:N. _ ~ncIudIng __ boycr1d ... .rigkW tenn at ilia ~... ..... 01 paj>eI), ....hY. rei...", or 01_ any ~nllhoOom_. nlb~, nI Cl>gtl1""'1Do; (wl1ctherh"""'....at uncler. ~ ImllUmMl ",atlllY 0ttleI' pw\y .. any time dinlc:lly ar ~ ..... far Ihe JlOymon\ 0101\\' of.... noIIgalI"",,; (11) _ partlli paymonls 01.... ""1ioJaIlam:: (0) _new or 8d_ ."""""""'.........ments atagl'Otlllll:nb.- loor n _at_ ob\i9l"inn<: ~.) ...... -lbI' oper.Ition uf laW or GIherwIso~ aonpGI.Ild. oonu,romlse, _ at 1iquIda" ony .. .... ot>IlgalIons and ... ooaJrill'_InOl\\'_ (01 """""" Ioll1o ""noW or...... ofll1e 1llICWIIy, _....1\01<I addlticm&lllOCUlftt.r ~..Int ..Id obllgotlons: III _,__"'_8I1'f_",pronly;at (g) lid _ p'- at Iny NIe aI paper or oo<>lIIIi 3I\d 3I'PY 01\\' JlI'lCOI>b<< ~Iy. and direct tl1. aoI...1l1d m...,.( of ..1<- g. ",,"m;omacle """"J<lIlIll onytimefar _'" r_<lI "'any.-G) '" _value RlCIlMId by)'O\l. from any """roe. il1: paymem;r:A <<an accountot.,. ofiha CIbagadonI aftnG ccmpany gwraOOJed nereunder and yau repay orolherwi&G wc~m.llal::4e ...... at any FM '" IUl:h _ '>Y"""" at (a) any Pdgmonl._..._ClIanyc:ourt<<"""oLiA.tio..__lng<:omJlOOlotlt1urlldlolion;", \Ill 8lI' _ ",,,,,,,,,,,",,,, aI any ouch claim. we _ _ Joill1l1""" .......lIf __ '" yau _ "" Iha ......lIt"" ropaId '" far _ :Po' aro lIlherwIM liable to ~fW'J)~-~(..:b:lIng~endLou~ Flo-l rtft ~~ - . ~~~ "",- ~ ~ f ..._.........""~"""'_.I.....---Ily_~M\I__or""'_oI ... .- or mot 0QnI.""'n1 ovIdondng _ o/!he ~'Ill 11..,.. <II lho Campo"1. 1lUs __I _ .... I8SpOdIv6 hoi... __ __. Sl/--., and osolp. ond _Inlow III you- """"""",""" aalgna. kldudlng. butnal im~ 10. _ pcty.. ""'om.... may...Ign..,..... or loins 01 P"l'Ol'. "" honIby woIofng nail"" 01."1 ""'" ~nl All of your r1ghl:l "l\I":r WlMldve md. not illtDrnI'dve. . fly tDllll.n of U1b lJU4If':IIntJ' '9Rtr ;ulAlntor .....a.d_ illllr6H M ~ i1llr1ghblllQl MAl by lucv In any aa10A, pnK:HGIng. Gr~q'I on <<n1 JnIU!Ir...f""tlJ~lI\.r"""n1f ~ llf.11I COtkllldJOd..... otfllll&l6<l to.... IUIor.ftll/. "-""d ~ I~ '~K.., - NOTE: ~_lI'<Utaign_UUooL ~.Jam_.....t'Jolm_.__' u..___nalP.o.~~ _ t4 MM'i1l-ti :~~ ,-'" M~~&;-p...~l<' Au,; t1....::c.,V1#tcUi?v/!$ ~#. pi?~--r Home_.. - G_ lJ1dMdualfy Homo~ ,..........'Y ~- lJ1dMdual1y Homa~' W1tn_ Lil.A . /}. ';(,,~ IOut'/ ~.b.t/"P"'" rl'~ lIJ'r.k. /? . (7(16'5 __ /.M (I' CoIpaQII G...._ NOTE: En10t _11llfM of CCfPOroUon ....lk-.l _ 1M, lbIawed by clty end -. HoRcm/ ~ J,<:-, _01___ H~r"i~'(<: PI). J7~e;S Cl\Y~_ ~-M ~tj~~T_' /.tfiJll~ ~-S/.;e. ........"'<:--. r1~</n..icsP.v~ 1!fJ. f7a.;-S" ~.- ~ .J}. . !Iy.11I '-M :t?/)h-. _~.,~ ",J;f CORPORATE ~ ..;'trf qr"n- ...... 5--&Il,..qT(4IlJJ)au-.w,-~~~...:t:~1 P"""2.ct'z - #,I="J ~""~ ~.~"- . The C1T Group! Equipment Financing, Inc. 1540 West Fountainhead Parkway Tempe. AZ 85282 480-784-2300 Mailing Address: PO Box 27248 Tempe, AZ 85285-7248 March 17, 2000 Morgan Hughes, Inc. 1 Park Avenue Mechanicsburg, PA 17055 RE: Notice of Default, Demand for Payment, and Intention to Accelerate Balance. CERTIFIED MAIL #Z 259 080 996 Account #4136-35607 The CIT indicate that make a formal is a past due Group/Equipment Financing, Inc. ' s records the referenced account is in default. We now request for payment at this time. The following alDount now due: Account # 35607 Legal Contract L/C Repo cost Total Amount Past Due $ 50457.36 $ -0- $ 11352.98 $ -0- $ 61810.34 Past Due From 7/15/98 The CIT Group is now requesting that you pay the due amount on or before March 27, 2000. If we do not receive $61,810.34 on or before the above mentioned deadline, The CIT Group will accelerate the maturity of your ~ban, declare the balance of your loan due and payable without further demand, and proceed to foreclose and sell the collateral under the terms of the Security Agreement and applicable state laws. Any deficiency from the foreclose sale not paid by you could resul t in CIT being awarded a deficiency judgment. Any writ CIT may acquire on that judgment will be exhausted through all legal means. please forward your check for $61,810.34 not later than March 27, 2000, so that we may avoid proceeding against the collateral securing these accounts. Partial payment will not cure default. Sincerely, W.t:.~ W.E. Oberlander Portfolio Specialist CC: Morgan C. Hughes-Guarantor; B. Van Horn; D. Walter; T. Oatis-Repossessions & Liquidations; File ,"",'.' ~ ~~ . '~- " ~~~ .,".'"" .l..Ol"l-'.u'u....."a-;:J',-_.arn:r4D.-~-- - ----- . Print Y'lur name and address on the reverse of this form so that we can retum this _\OVO.. . Attacfl this form to the front of the mailpiece, or on the back if space does not pennlt . Write -Return Receipt Requestsd" on the mailpiec:e below the article number. . The Ftetum,Recelpt will show to whom the article was delivered and the date delivered. 3. Article Addressed to: e-,;tra;ee~'--- . ,. 0 Addressee's Address 2. 0 Restricted Delivery Consuli postmaster lor lee. 4a_ Article Number .z ~~ CSgo 't9 4b. SelVlce Type o Registered o ExpreSs Mail o Return Receipt for Merchandise 7. Oat eli~ ,~ ~~ C. t-t<<fltes I Yt:Il.{..f<. Al/etA..~ e M ~Cu.1;cJu., I ;. Received By: (Print Name) Prl- 8. Addressee's Address (Only if requested and fee is paid) liEn 1ilHi!a Domestic Rltum Receipt . ~~ '~.<'''''I.w';' - -r ai' " 1:. " u>' a' il " 0: c ~ " 1il 0: Dl C 'ii ". ~ 0, - " 0, '" ~ .. ~ -. ~-",,~" - '--- The CIT Groupl Equipment Financing, Inc. 1540 West Fountainhead Parkway Tempe, AZ 852"82 480-784-2300 Mailing Address: PO Box 27248 Tempe. AZ 85285-7248 April 7,_2000 Morgan Hughes, Inc. 1 Park Avenue Mechanicsburg, PA 17055 RE: Acceleration Notice Certified & Regular Mail #Z 259 081 014 Account # 4136-35607 Although we have made every reasonable effort to extend our consideration, you have failed to meet your legal obligation to The CIT Group/Equipment Financing, Inc. under terms of your contract. Our records indicate that you did not comply with our Demand letter dated March 17, 2000. Because of your failure to pay the delinquent amount due on your account, The CIT Group has accelerated the maturity of your account in the amount of $ 61,810.34. We must receive the balance of $ 61,810.34 on or before 4/17/00. Otherwise, we will proceed with legal action to protect The CIT Group's interest, including foreclosure and sale of the collateral under the terms of your security agreement. If you should fail to pay the balance due by the above deadline, we intend to seek all legal remedies available. You will be responsible for payment of attorneys' fees and other expenses as stated in your security agreement. Sincerely, lA),e.6~ W.E. Oberlander CC: Morgan C. hughes-Guarantor; B. Van Horn; D. Walter; T. Oatis-Repossessions & Liquidations; File - 1. Article Addressed to: MM"1411 H fA 1 ~ es I (&vi. k R-vfi!Lt.u.!t!:- 1>f1-- het-~~t'ls~) 'i . I .O~~ 2. ArtIcle N~mber (Cppy ti'OmSeIVI'l'l~'~~JI;';:~; i t i, i " I ! ~ ,n 'lll',;t~~i :' i, ~~~t~~~:",.': , s. Baii J J.h'"99! ' II ". ;1'~..;t:U.:\iiROtum.'.'.;"R.'''''!'''''PJ.:.<;' . .Fa ...... .U'f!.Jt'l,r l! "~ltF,'!"t",.,,,,,~> :,\~:v.:7,,,..,t'.", ,U~,<~"~~~ l............~~ ,,"!C;l;~;j\~~'1;2; and ifAi,jljm'inp el "f"~ ~em.4 ~ RestrIcted.Delivery is desired.;, ..j .priiiiy()ur'iiaii1~arld addl'eSll on thei$Yern. so that we can return the card to yqu. . Attach this card to the back of the mallpiece, or on the front If space permits. ______c___ .._...___~_.-..._.___--I~_"~_' ,,fk<lfi' ,,,,/. , c. Signature DAgen! D AddresSee I DvSi; ; D'.' 1 No. f I ( l x # - ~ ., D. 1si~;ii<jd~dmeren.from.itemJ? "YOS/eoieideOve.y ilddress below: .. ~ .}." '~~';i::' -, " " " j ;ge~!~:4Eise I ~..,," --=---=:--,-~o.':':~-"~---O"-~'-!---o-- .,.... ..h _ '-_ ""__',_. u .. ." ."., , . ~"'%~"1 .' ~, ~ . ,. ,~,~ , Z 196 942 741 US Postal Service Receipt for Certified Mail No Insurance Coverage Provided. 00 oot use for International Mail (See reverse) Se~o organ C. Hughes 61'1 ~um~ ax: Avenue Pas( Office, State, & ZIP Code Mechan~csburq, PA 17055 Postage $ .33 eerllfied Fee 1.20 Spaoa! Delivery Fee Restricted Oelivery Fee Return Receipt Showing to 1.45. Whom & Date Oeliv8red Relell1ReceIpt~toWhom. Date. & Addressee's Address 'IOTA!- Postage & Fees $ 2.98 Posunalk or Date 5/22/00 ~ -- - - - - - ---------- -- on '" '" ~ ~ o o II) .. E & U) n. ._,~.~ lid; ~~ mE, MORRIS & HECKSCHER LLP ATTORNEYS AT LAW PHILADELPHIA, P A NEW YORK, NY CHICAGO,IL WASHINGTON, DC SAN FRANCISCO, CA BOSTON, MA MIAMI, FL WILMINGTON, DE WAYNE,PA CHERRY HILL"NJ NEWARK, NJ WESTCHESTER, NY PRINCETON, NJ PALM BEACH, FL ALLENTOWN, PA HOUSTON. TX BANGOR. ME DOVER, DE 305 NORTH FRONT STREET. 5th FLOOR P.O. BOX 1003 HARRISBURG. PA 17108-1003 (717) 237-5500 FAX (717) 232-4015 www.duanemorris.com May 22, 2000 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED AND FIRST CLASS MAIL Morgan C. Hughes I Park Avenue Mechanicsburg, P A 17055 Re: The CIT GrouplEquipment Financing, Inc., Morgan Hughes, Inc. Account Number: 4136-35607 Dear Mr. Hughes: This firm represents The CrT GrouplEquipment Financing, Inc. in the above matter. On February 13, 1995, you executed a Guaranty personally guaranteeing the indebtedness of Morgan Hughes, Inc. for the purchase of one Otterbacher Twenty Foot Finished Food Trailer (the "Guaranty"), a copy of which is enclosed. The Guaranty was promptly assigned to The crr GrouplEquipment Financing, Inc. On March 17, 2000, CIT notified Morgan Hughes, Inc. that Morgan Hughes, Inc. was in default ofits obligations to CIT and had a period often days to bring its accoun.t current (the "March 17,2000 Letter"). No response to the March 17,2000 Letter was received. On April 7, 2000, crr declared Morgan Hughes, Inc. in default, accelerated the unpaid balance, and provided Morgan Hughes, Inc. with a period often days to pay the balance on the account (the "April 7, 2000 Letter"). No response to the April 7, 2000 Letter was received. You were copied on both the March 17,2000 Letter and the April 7, 2000 Letter via Certified Mail, Return Receipt Requested. CIT makes demand upon you under the Guaranty for payment of the obligations of Morgan Hughes, Inc. to crr. As of May 18, 2000, the outstanding balance is $63,324.06. Please remit I,. ""'_"'", Morgan C. Hugh~s May 22, 2000 Page 2 $63,324.06 in the form of a certified check payable to The crr Group/Equipment Financing, Inc. Payment should be sent to my office within ten days of the date of this letter. If payment is not received within the ten day period, CIT will have no alternative but to pursue all legal remedies it hag. available. Very truly yours, ~~.)).Q"--~ ' Brian W. Bisignani for DUANE, MORRIS & HECKSCHER LLP BWB:slr Enclosure cc: W~E. Oberlander, Portfolio Specialist, The crr Group/Equipment Financing, Inc. Jennifer L. Murphy, Esquire HBG\49979.1 ".~ , ~"L~~,<," ";.j,l~i,"""," . . Guaranty To; 0\l0rl>0Ct10r ManuI3during, Inc. ""'"' of... sevoraIIy roq_ ~ It> _ ad to or to !Xl- SOCU1Ity _... _, _. __ and or other oI!Ii9o\O)tl. (horeln ~y _ "P<'I""'l olorlrcm or oIlloIwlse to do__ 1w'.orcr.tJ'i lhMheB. Tn~. - ~ehani nnbtn"o' COIv PA , ..... hM!l1f1atM:r allied the "Ccmp;my,- Bfld 10 Induce yau EiO to do IiJJw:,{ in oonskferatian Ih8I8of .,d of bl!!l'llafB 10 2KCI\Ht io Bach of ~ 1he_. oad1 at........ pri""'Y GIlIIgor, johIIy and ocYe!VIly..... .n_~!IIllI_ \0 you IholIl1e COmpanywill foil. an<! prompllypsyand pabm"'ilI;plMel'lland_ablillll1io~..ycu,_..._or-'jO/nI..._. .._..._0(10<<. _...1NeaRd. ~ orVll1l_ a""_<lIIgInaIIy c;onIracIod will you Of OIf!orwisellCllurred by~, irroopoalve of any Il1Yi1lldlly or ...............11Iy of"", well oI>Ii~ or 1110 1nouIIidency; lnwIi<iIy Of ..-...xrily of 11II)' _ ~ ondagnl... _your lhI~to pllIcced .1lOl....CcImpony...to ~_......, oeaIIIy tIlefeb'..lO P"Yon cfem:ond a111l11nadUaIllld1l>_duelOyouwmtll. C_andal........ ...._.._..._...-.m"l'..._ byyou by """.'" ol1M Company'sd_ or _'" anyof.1I1. undBr&I;ned _'01: and ~ 10 b. bound by..... "" cfomand 10 P"1 "'" ~ OOlabli_ by. ..Ie of _ .nd or oeaIIIy held. .... Of _ _ to lIS. ,",I. g....."'Y Is on ",,,,,,,_._oIparnon1,,,d porll>_ Nogo__'''''_ or~. ei1her in_orin pan, by your fair"", ... _ lO perfocl or __ lie ....-. at "'" IIOCUltly _ 'n..., pope<ly which.....,." "'" Illlllgali... ofll1e Company ....ny of... 10 ..... or to PR>leoI 1M ~ _d byu:h oeWlily_ No_,,""""_"'_ by",..oaIh of II1Yllt II ofllS. NolOtm_ _beolloc1lve"""o.noolooAOtIoYOu by _ maIIl8IIlm I1ICSlpt __ ,,,,nlillllalem1inatla. GilD _... "'" Ioas 11m 1IO day$ __ \i1o) t8CaIpt oIauch iIotico by you; .r _ .. to any at... _Iioo not gI\n!n BIIdt "oIictr, or _ any ""n..elIon __ prior to .... offl!dJw date of mrmi""M.. ~ (1/... waives: _ of ~... """"'to ......lmont. do,"""", _ and _ (1/ I1Ol1poymonl Of""'" ..10 any note or __ sIaned. """"plod, .......... .r auIQnBd to you.... 1l1e ~ II1Y and all rtshb of .~on. _.....ont. """'">Illty.~._oliO''''lI1YoIheo'.~_a\IYd....moynow'''ilII__.~","Campsny...any- """'" dlrocllyorcomingelllly _ for"",. oI;j~.,glll!llll1leoO .....undtor, ... ~ or'wIlh _'" '''''''' Company's p""",rty ~r1cIudlng. _lmitll1iol1. "",pOny "'Io=-s,bd~ k>~.lUlaing_ tIle_... perIonn..... oftllis!l\lOAl'llY; ..llX!II1pt1.... ...hom_.... 0IIlI Sly _ demlll1<lo ..._ r.quirad by 1iIw;" _and _: and '"1Y duty OI\:your port (._ ......... e>ds1l to_50 to..." Dlu,any mailer. _ III Ihk1s """"'" 10 Iho buoI.... DpwatI""" or ,,,,,".don (ftlllmclolor _001 of... Company... r.._ "'_. __ III he_,...,.... by you. You may at ""'...... and 110m time to 11llO. _.... """son!, wl1l1out_ '" 0" and _ a1loc1lng or Im_g .... obIIgaliOll of .n. 01.. _. do any ..1ilII1ol1-.g; (aJ ....ow. _ ~ncIudIng _.......,.,..... orIgInaI1enn" tho ~"" _ of paper). _itY. .....'" or oi_ a'!l ob[~ ollhoCompony,"b =_, of _a_ (wl1elherhe....- or undor a separal<Ilnsll1lmonl) Of '" OI\y omer pw\y .. any dm. .irodIy... contIngenIly _. for the poymonl DlIIII)' of _ nllI1gadDM; (OJ _partloIJllIYIlllBIfsofsaid""tigaIlons: ('" _..... or additional ............. i.......ments... ag.......m rel$ID1g 10 or n _.. said .b1~,,",,: (0) ...... _ lb7 opent;on of laW or 0IheIwise~ compDIllId. oompromlse, _ or IkPdabl a'!lof ..... OIlIlgaII... I01d lho BeCllIll\'_"''"1Y_ (e) consentlllll1e """""'... relum of tho SIClO1Iy. _ """ MId _... ~ or guooonti.. lor ..Id abllgodo... (lJ .........."o;toang<o........."'_II1Y_Ofgoaronly;or Clll Ilid """ p""""",, at IllY SIlo of _ or -.ri!i and Ipply Sly 1'fI'CCcdo or _<Y. .... direcl till _ ... m"""er (1/ ..10. . a oIaim;o macIe ......yculllllll)'dmefor __ or -Ill ...ny _"l Of _value _ by..... from ai<'J ""'roe. i. paymontof......_......., of... ~ 01 tho company ____ nor_and you"""",...oIher.oiIlO llKOmllllllle 1OIa11l1anypallof__by_ol: (OJ any PfgmBlll._or_"'anytoUllO".4i."'.....Ii>.WiJi_lngOOlllJlOl>lt~jurtadIDlion; or \Il) any _on! or-"""" of any auch Claim. ....__join1ly""" _1y_toycu_filt.........ntaorepak!Drlor_........._II_to foSAo4nfW3)~-~{~InGIWlt!.IW...,.c~ PIa.' qf~ 'h>.. ~ f the.sllme ~ ii1:I. it &uCh oamaunI(lt) hltd 1'lBV<< D6en teOltiWCI DyycN., ~ MY ~ Mroa( ortn6 ~<< ....- or....or _... _ndng... at.... ~ <II It10 Company. 'll1io _ _I bOld cor.._ hol... -- -. -. and oooigno.llI'Il__tl}'1Hlt _and...igno. k1cIlI<Ing.butl1llllinltod 19. ony fIOltr III "",om.ycu may"'91 ony - or - <II _. ... hlnby _ng nolle<> "'.ny :IUd> oooi\I1menl All "'1'<""'righl:s "cumulallv8 and not IttItmaffve. , 8y tll8ll~" of fib ,v<<fllmtJ ftCib I'RIIWIMr "'nruad_ ilQ.... td W*hrto ~1111ghbL ro bUI Dy Jury' In an, aalOA. proc.eatnQ. or COUnIIInobLIqI on M)l' mwttwwhl~r""DiI Our Mt 111 COftd~ WIllI. at ,..1&Iad to au llua~. - -r;;" IX ,g~. fndIvl<IuoI NOTE: 1_ guoran1lXlI...oIligll_ _ SIgn "J_ SmIlh:...( "John _. ""'"'"""'-" G..."...... USO......__noIP.O._~ ~~lt:;;-{f~~ ~~~~:=<; PI, /~e?~~- ~~.. Indivklually Ho..._ lmividUally Ho...-.. In<iYiclually Homa~ WI,"_ LI_h.~ /J.. ~.lc.N HQmIJ~ ./~~l/ In,.." ~.JJ.I..,......... ~~ I-I,,.~.A ~g,s:s C4rpa_ Qu.a_ NOTe: En10r __ """'" of """"_ on ~ '"""" ~M, foIIClWOd by chy and _. ~~k<:' _01 11~~;>"~f: Pt). 174<;1; CiIY__ H.4:M ~o/~~T_' k:oAr~ ~-Sj,e. -"'~ rt?,,;'.fJ1~fcspgAf Pit f7lJ~ ....- By :/1'11. . ...... . CORPORATE 5EJ? _l"r' qr"o- l1::rtn ..... I -- ilIe r.!:i-4"*' or' - S-SA--<T7(4113~Gu-*Mr.COtIMlIkIQ~~...:ILaa111M1i) PajjllIIZllfZ .~_",'''_II~.i, ~-- '~~~llIi l -'~ . ._....~ v''-'_~ '." ~....;y;~ '.'.v. ,.Y>-., ';', ',-..._,'. ........... .. {i SENDER: . Cl Complete items 1 and/or 2 for additional services. -"~"" Complete items 3; 4a, and 4b. t Cl Print your name and address on the reverse of this form so that we can return this ~ card to you, ! 0 Attach tNs tomI to \he from of \he mailpiece, Of 00 the back if space- does not CD permit. s::. C Write "Return Receipt Requested" on the mailpiece below the article number. -;; 0 The Return Receipt will shaw to wham the article was delivered and the date o delivered. "i 3, Article Addressed to: ... ii E o u '" ~ o o I also wish to receive the follow~ ing services (for an extra fee): 1. 0 Addressee's Address 2. 0 Restricted Delivery 4a: A.rticle Number Morgan c. Hughes 1 Park Avenue Hechanicsburg, PA 17055 Z 196 942 741 4b. Service Type o Registered o Express Mail o Return Receipt for Merchandise 5. Received By: (Print Name) 7.0a ~IiV~?_ 8. Addressee's Address (Onty if requested and fee is paid) s o '" !I! fessee or Agent) 102595-99-B-0223 Domestic Return Receipt ~ " -"" . VERIFICA TION I, W. E. Oberlander, hereby aver and state that I am a Portfolio Specialist for The CIT Group/Equipment Financing, Inc. and have read the foregoing document which has been drafted by my counsel. The factual statements contained therein are true and correct to the best of my knowledge, information and belief although the language is that of my counsel and, to the extent that the content of the foregoing document is that of counsel, I have relied upon counsel in making this verification. This statement is made subject to the penalties of I8 Pa. C.S.A. ~ 4904 relating to unsworn falsification to authorities, which provides that if} make knowingly false statements, I may be subject to criminal penalties. Dated: to,~. ()W~~ W. E. Oberlander, Portfolio Specialist HBG\4g816.1 \, \ \ \ \ ~ ~" '"""'"-"''''~lIiiIhiliIliIld~'I~~'fr'~,!B~_I_,'~''''''~OlldII~iIliii/ljj!j >.., ^- ir (',J ~ ~ ~ - II) ~ ('") z In (-; c.': -::0 '"t:. "l::S ~~ ~~~ (J~ Q... a.... ?;; ,,:,- ():<e e c... O~ /)., 0 (j~- 7>- 8 .~ 0::) :-_7(}) ;I 0:,1';_ , ,::Jz , l.n a e --j- ccz 0 ..,-':,. LUUJ y --+t =.,) coo.. :r- -, :;;j;' ~ Li. Cl J ::,l c:L CI C> U cJ j ^'"~', <~.., " I ~, ~ " ,",0__ ",~ _ ,0" ,-. ,-,-' ". ~bl .~.'4lIiiil' -~ -,- . .I . THE CIT GROUP/EQUIPMENT FINANCING, INC., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, P A v. CIVIL ACTION NO. 2000-3501 MORGAN HUGHES, INC. and MORGAN C. HUGHES, Defendants PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of David R. Breschi, Melissa A. Swauger and the law firm of Shumaker Willia1lls, P.C. on behalf of the Morgan Hughes, Inc. and Morgan C. Hughes, Defendants in the above-captioned matter. SHUMAKER WILLIAMS, P.C. By>?fZ!Jl ~-e David R. Breschi, Esquire, I.D. #59001 Melissa A. Swauger, Esquire, I.D. #82382 P.O. Box 88 Harrisburg, PA 17108 Telephone: (717)763-1121 Telecopier: (717) 763-7467 ~~c. ~ _,"," " ~ " , . 0" CERTIFICATE OF SERVICE I, David R. Breschi, Esquire, of the law firm of Shumaker Williams, P.C., hereby certify that I served a true and correct copy of the foregoing Praecipe for Entry of Appearance on this date by depositing a copy of the same in the possession of the United States Mail, first-class, postage prepaid, addressed as follows: Brian W. Bisignani, Esquire Jennifer L. Murphy, Esquire DUANE, MORRIS & HECKSCHER LLP 305 North Front Street P.O. Box 1003 Harrisburg, PA 17108-1003 Attorneys for Plaintiff D'~ J, ~ SHUMAKER WILLIAMS, P.C. By~L~ P.O. Box 88 Harrisburg, PA 17108 (717) 763-1121 Attorneys for Defendants 120651 ~<, """,,--" 0 c:> 0 c c:> " ::::~ '--- ~."j -rJ CO c:: ~'\-;I 'J'J rnfl1 .- Z:JJ ' ,-- . ,-1fT! ZC en :,:,;~ CfJ ~~2: ..~,O r2CJ -0 .', -~ --r, l" ~'l"'i )> ~- ~,.n- ;;;:C) Z~.Jj r;;) ",':::"~ rn )>C~ u -.-1 ~ :..;) )> ,,) ~ ,- <,y~, - . SHERIFF'S RETURN - REGULAR . 'CASE NO: 2000-03501 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND THE CIT GROUP/EQUIPMENT FINANC VS HUGHES MORGAN INC HAROLD WEARY , Sheriff or Deputy Sheriff of Cumberland County, Pensylvania, who being duly sworn according to law, says, the within COMPLAINT - REPLEVIN was served upon HUGHES MORGAN INC the DEFENDANT , at 0015:32 HOURS, on the 14th day of June , 2000 at 1 PARK AVE MECHANICSBURG, PA 17055 by handing to REBECCA MADDEN (OFFICE PERSONELL) a true and attested copy of COMPLAINT - REPLEVIN together with NOTICE and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Aff idavi t Surcharge 18.00 5.58 .00 10.00 .00 33.58 So ;;;~~~ R. Thomas Kline 06/15/2000 DUANE, MORRIS & HECKSCHER Sworn and Subscribed to before By: 7kf,t i;., Deputy Sher~ , '7~ me th~s day of ~ (}~qO A.D. q'f/.$JI. C /n(c'er:, ~ rothonotary ,. i., ~~"'\" SHERIFF'S RETURN - REGULAR . CASE NO: 2000-03501 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND THE CIT GROUP/EQUIPMENT FINANC VS HUGHES MORGAN INC HAROLD WEARY , Sheriff or Deputy Sheriff of Cumberland County, Pensyl vania , who being duly sworn according to law, says, the within COMPLAINT - REPLEVIN was served upon HUGHES MORGAN the DEFENDANT , at 0015:32 HOURS, on the 14th day of June 2000 at 1 PARK AVE MECHANICSBURG, PA 17055 by handing to REBECCA MADDEN (OFFICE) a true and attested copy of COMPLAINT - REPLEVIN together with Non CE and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 6.00 .00 .00 10.00 .00 16.00 ~~ ~e:~~ R. Thomas Kline 06/15/2000 DUANE, MORRIS & HECKSCHER Sworn and Subscribed to before By: ~/d.2 , Deputy S~ff this '7 !':- day of ~ ~m= AD . ~LQ 'YvL,Qo~) ,~ P 0 honotary me ',' ~ - __, l~, "'1 .- ' ,. i. THE CITGROUP/EQUWMENT FINANCING, INC., Plaintiff v. MORGAN HUGHES, INC. and MORGAN C. HUGHES, Defendants ". '" -~ " ~~" ~.'-c,-' ,''''~, :1 ,~ ,:"~ ,'- --",', .",',;;;,'- "-.", -,< - " ,-.- ~"~, - - ',: ,- " . IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA CIVIL ACTION NO. 2000-3501 NOTICE TO PLEAD TO: THE CrT GROUP/EQUIPMENT FINANCING, INC., Plaintiff -and- BRIAN W. BISIGNANI, Esquire JENNIFER L. MURPHY, Esquire, Plaintiffs attorneys You are hereby notified to file a written response to the enclosed New Matter of Defendants Morgan Hughes, Inc. and Morgan C. Hughes within twenty (20) days from service hereof or a judgment may be entered against you. SHUMAKER WILLIAMS, P.C. B~.(~~ MelissaA. Swauger, Esquire, LD. #82382 P.O. Box 88 Harrisburg, PA 17108 Telephone: (717) 763-1121 Telecopier: (717) 763-7467 Attorneys for Defendants THE cn GROUP/EQUIPMENT FINANCING, INC., IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, P A v. CIVIL ACTION NO. 2000-3501 MORGAN HUGHES, INC. and MORGAN C. HUGHES, Defendants ANSWER OF DEFENDANTS MORGAN HUGHES. INC, AND MORGAN C. HUGHES TO THE COMPLAINT WITH NEW MATTER NOW COME Defendants, Morgan Hughes, Inc. and Morgan C. Hughes (hereinafter "Defendant Hughes"), to answer the Amended Complaint in the above-captioned matter, averring as follows: 1. Admitted in part and denied in part. It is admitted that Plaintiffhas an address at 1620 West Fountainhead Parkway, Tempe, Arizona, 85282. It is specifically denied that "The cn Group/Equipment Financing, Inc., is a corporation duly organized under the laws of the State of New York." It is specifically denied that the cn Group/Equipment Financing, Inc., "is authorized to do business in Pennsylvania." By way of further response, after reasonable investigation, Defendants are without sufficient information or knowledge to admit or deny the truth of the averments set forth in paragraph I of the Complaint and strict proof of same is demanded at the time of trial. 2. Admitted. 3. Admitted. I I 0'.' .,!,.-,__",C .,-,~,~' - ,.,"' _"d~: ',0 ,-. ~o O. _,_ . 10 COUNT I THE CrT GROUP/EOUIPMENT FINANCING. INC. V. MORGAN HUGHES. INC. - REPLEVIN AND MONEY DAMAGES 4. The above responses to the Complaint in paragraphs 1 through 3 are incorporated herein by reference. 5. Admitted. 6. Denied as stated. By way of further response, the averments in paragraph 6 of the Complaint summarize a written document, which is attached to the as Exhibit A, and such document speaks for itself. 7. Denied as stated. By way of further response, the averments in paragraph 7 of the Complaint summarize written documents, which are attached to the Complaint as Exhibit B and C, and such documents speaks for themselves. 8. Denied as stated. By way of further response, the averments in paragraph 8 of the Complaint summarize a written document, which is attached to the Complaint as Exhibit D, and such document speaks for itself. 9. Denied as stated. By way of further response, the averments in paragraph 9 of the Complaint summarizes a written document, which is attached to the Complaint as Exhibit E, and such document speaks for itself. 2 " "",~,. '. 10. Denied as stated. By way of further response, the averments in paragraph 10 of the Complaint sununarize a written document, which is attached to the Complaint as Exhibit E, and such document speaks for itself. II. Denied. The Complaint does not provide sufficient information in order for Morgan Hughes, Inc. to admit or deny the truth of this averment nor after reasonable investigation can Morgan Hughes, Inc. provide a response admitting or denying the truth of this averment. Thus, strict proof of same is demanded at trial. 12. Admitted in part and denied in part. It is admitted that the value of the Collateral is approximately $53,000.00. It is specifically denied that "CIT has not been able to inspect the Collateral ( in spite of its request to do so)." By way of further response, Morgan Hughes, Inc. has repeatedly stated to ClT personnel that they were permitted to inspect the food trailer, but ClT personnel have not done so. 13. Admitted. 14. Denied as stated. By way of further response, the averments in paragraph 14 of the Complaint sununarize a written document, which is attached to the Complaint as Exhibit A, and such document speaks for itself. 15. Denied as stated. By way of further response, the averments in paragraph 15 of the Complaint sununarize a written document, which is attached to the Complaint as Exhibit A, and such document speaks for itself. 3 I,,. _=, _ "_'0' -"_~. ",', I 16. Denied. After reasonable investigation, Morgan Hughes, Inc. is without sufficient knowledge or information to admit or deny this averment. By way of further response, Morgan Hughes, Inc. did not make any payment on this account. Rather, upon information and belief, any payments made on this account were made by an independent third party. 17. Denied. After reasonable investigation, Morgan Hughes, Inc. is without sufficient knowledge or information to admit or deny this averment. By way of further response, Morgan Hughes, Inc. did not make any payment on this account. Rather, upon information and belief, any payments made on this account were made by an independent third party. 18. Denied as stated. By way of further response, the averments in paragraph 18 of the Complaint summarize a letter and return receipt, which are attached to the Complaint as Exhibit G and H, respectively, and such documents speak for themselves. 19. Denied. Morgan Hughes, Inc. did respond to the Plaintiffs correspondence. 20. Denied as stated. By way of further response, the averments in paragraph 20 of the Complaint summarize a letter and return receipt, which are attached to the Complaint as Exhibit I and J, respectively, and such documents speak for themselves. 21. Denied. Morgan Hughes, Inc. did respond to the Plaintiff s correspondence. 22. Denied. Morgan Hughes, Inc. has tried to resolve this matter by offering the return of the Collateral. 4 . ,~' ,~.' - .. ." -~'- "' ""~ '",~__~ 0 . '_"'~-"';: .;j,':"., ,"" '. ,__:1' ' 23. Denied. At all times materials to this Complaint, the said collateral has been insured. 24. Denied as stated. By way of further response, the averments in paragraph 24 of the Complaint summarize a written document, which is attached to the Complaint as Exhibit A, and such document speaks for itself. 25. Denied. Morgan Hughes, Inc. has tried to schedule an appointment with CIT persollllel so that CrT persollllel could inspect the Collateral. In addition, Morgan Hughes, Inc. has offered to return the Collateral to Plaintiff. 26. Denied. After reasonable investigation, Morgan Hughes, Inc. is without sufficient information or knowledge to admit or deny the truth of the averments set forth in paragraph 26 of the Complaint and strict proof of same is demanded at the time of trial. 27. Denied as stated. By way of further response, the averments in paragraph 27 of the Complaint summarize a written document, which is attached to the Complaint as Exhibit A, and such document speaks for itself. 28. Denied. After reasonable investigation, Morgan Hughes, Inc. is without sufficient information or knowledge to admit or deny the truth of the averments set forth in paragraph 28 of the Complaint and strict proof of same is demanded at the time of trial. By way of further response, Plaintiff has failed to produce documentation to support the amollllts alleged in 5 !..~''''. ,',L': .- , ",~ w ,;. "'i".."" I paragraph 28 of the Complaint; therefore, Morgan Hughes, Inc. cannot determine what amounts it has paid or the amount owed, if any, to Plaintiff. WHEREFORE, Defendant, Morgan Hughes, Inc. respectfully requests that this Honorable Court enter judgment in its favor, dismiss the Plaintiff s Complaint with prejudice, and further award Morgan Hughes, Inc. such other relief as is proper and just. COUNT II THE CIT GROUP/EOUIPMENT FINANCING, INC. V. MORGAN C. HUGHES - BREACH OF CONTRACT 29. The above responses to the Complaint in paragraphs 1 through 28 are incorporated herein by reference. 30. Denied as stated. By way of further response, the averments in paragraph 30 of the Complaint sunnnarize a written document, which is attached to the Complaint as Exhibit K, and such document speaks for itself. 31. Denied as stated. By way of further response, the averments in paragraph 31 of the Complaint sunnnarize a letter and return receipt, which are attached to the Complaint as Exhibit L and M, respectively, and such documents speak for themselves. 32. Morgan Hughes did respond to the Plaintiffs correspondence. 6 ,,~"~',- - i'. - ~. ," "' ," -~,- "",;';',' "c,,_ '",-' ,,,'." 1__' ~', 33. Denied as stated. By way of further response, the averments in paragraph 33 of the Complaint summarize a letter and return receipt, which are attached to the Complaint as Exhibit N and 0, respectively, and such docmnents speak for themselves. 34. Morgan Hughes did respond to the Plaintiffs correspondence. 35. Denied as stated. By way of further response, the averments in paragraph 35 of the Complaint summarize a letter and return receipt, which are attached to the Complaint as Exhibit P and Q, respectively, and such docmnents speak for themselves. 36. Denied. To the contrary, Defendant Morgan C. Hughes has attempted to resolve this matter with Plaintiff. 37. Denied. 38. Denied. After reasonable investigation, Morgan Hughes is without sufficient information or knowledge to admit or deny the truth of the averments set forth in paragraph 38 of the Complaint and strict proof of same is demanded at the time of trial. By way of further response, Plaintiff has failed to produce docmnentation to support the amounts alleged in paragraph 38 of the Complaint; therefore, Morgan Hughes cannot determine what amounts he paid to Plaintiff or the amount owed, if any, to Plaintiff. WHEREFORE, Defendant, Morgan C. Hughes, respectfully requests that this Honorable Court enter judgment in his favor, dismiss the Plaintiff s Complaint with prejudice, and further award Defendant such other relief as is proper and just. 7 _'~ ~ - L,., 'r. ,.,,-",', .,.,,','- ;;;;"''"'' '.. ",~;>~'- ,-- "---c,,,~,_, "_ ";"" ,_ NEW MATTER OF DEFENDANTS MORGAN HUGHES. INC. AND MORGAN C. HUGHES 39. The above responses to the Complaint in paragraphs 1 through 38 are incorporated herein by reference. 40. The Defendants made payments llllder the Security Agreement. 41. In an attempt to mitigate damages, the Defendants have offered to return the Collateral to Plaintiff. 42. Plaintiff refuses to accept return of the Collateral. 43. In an attempt to mitigate damages, the Defendants have offered to allow CIT personnel to inspect the Collateral. 44. Plaintiff refuses to inspect the Collateral. 45. Plaintiff is not entitled to both replevin, i.e. return of the Collateral, and money damages. 46. Defendant Morgan C. Hughes did not breach the Guaranty. 47. The Plaintiff s claims are barred by the doctrine oflaches. 48. At no time during the existence of the Agreement attached as Exhibit A to Plaintiffs Complaint did Morgan Hughes, Inc. make a payment pursuant to the conditions provided for in the Agreement. 8 ",", _~j' , 1: ,;"" ,- , "'C"';'-'" """"~"""',,,'. ~ ',"- - " ,- "','';,, - " ,~' , .' ""'-"'," '~ .1....... 49. If Morgan Hughes, Inc. has defaulted on its obligations under the Agreement, the Plaintiff was duly notified of any alleged default in June, 1995; thus, the Plaintiffs claims against both Defendants are bound by the statute oflimitations. 50. The Defendants are not responsible or liable for the estimated unpaid contract payments in the amount of $50,457.36. 51. The Defendants are not responsible or liable for the estimated contract late charges in the amount of$8,325.54. 52. The Defendants are not responsible or liable for the estimated contract late charges in the amount of $4,541.16. 53. The Defendants are not responsible or liable for the estimated attorneys' fees and expenses in the amount of$3,470.66. 54. The Defendants are not responsible or liable for Plaintiffs attorneys' fees and expenses incurred in pursuing Plaintiff s claims when the Defendants agreed to return the Collateral. 55. Plaintiffs' alleged injuries or losses, if any, were caused by Plaintiffs own actions or inactions. 56. The Plaintiffs claims are barred by its failure to mitigate damages. 9 , '1._, 1~,:_,;,_,;0.'-':" '>, ,','. '-'CC ..."'SV,.' '.",c""",c, c'"""""",""" "1"'...... .,,~- ,-&, ,~",',~C__ "-,,~,,, -.,,,,. J~~.""0J.,..::;L-' '~,:":,.,~ .~ 57. If Plaintiff establishes that it suffered damages as alleged in its Complaint, which allegations are specifically denied by the Defendants, said damages were not caused by the Defendants. WHEREFORE, Defendants, Morgan Hughes, Inc. and Morgan C. Hughes, respectfully request that this Honorable Court enter judgment in their favor, dismiss the Plaintiff's Complaint with prejudice, and further award Defendants such other relief as is proper and just. SHUMAKER WILLIAMS, P.C. By avid R. Breschi, Esquire, LD. #59001 Melissa A. Swauger, Esquire, LD. #82382 P.O. Box 88 Harrisburg,PA 17108 Telephone: (717) 763-1121 Telecopier: (717) 763-7467 Attorneys for Defendants 10 I I 'H' --,-~.J.._.,. JUL 26 '00"03:20PM AT&T FAX 90l5PF !"'Al.;It.. l'.. P.l ~l"1.LII"j~r-J:::,J"I': 'r,'J,L..!...l...,r'l;1 .:.'.1'.".' .!....;.:.l ,1,' ':Il-l':l.1.t,.:;.:;I VERlFIC A 'fION The u.ndersigned. Morgan C. Hughes, hereby verifies and stateS that: , i' He is the President ofMotgan Hughes, Inc.; l. rhe faclS set forth in the foregoing pleading are true and correct to the best of hlS knowledge. info11'l'lation, and beLief; and 3 , " l) atl'd 'I \";).'1\00 , , i I c -" .._..1 P.Z ""~ti:~J, JUL Z7 '00 lZ:36PM AT&T FAX 9015PF 07/27/2000 11:57 71 79091633 SHUMAKER WILLIAMS PAGE 01 .vERIFICATION The undersigned, Morgan C. Hughes, hereby verifies and states that: I. He is the one of the Defendants named in the within achon; 2. The facts set forth in the foregoing plead.ins are true and correct to the best of his la1owledge, infonnation, and belief; and 3. He i.s aware th.at false statements herein are made subject to the penalties of 18 Fa.C.:). ~4904, relating to unswom falsitication to authorities. c. f DatE:d: 1'j\~I\\ao :,:>c- CERTIFICATE OF SERVICE I, DavidR. Breschi, Esquire, ofthe law firm of Shumaker Williams, P .C., hereby certifY that I served a true and correct copy of the foregoing Answer with New Matter of Defendants Morgan Hughes, Inc. and Morgan C. Hughes on this date by depositing a copy of the same in the possession ofthe United States Mail, first-class, postage prepaid, addressed as follows: Brian W. Bisignani, Esquire Jennifer 1. Murphy, Esquire DUANE, MORRIS & HECKSCHER LLP 305 North Front Street P.O. Box 1003 Harrisburg, P A 171 08-1 003 Attorneys for Plaintiff Dated: '1 \~rj \00 SHUMAKER WILLIAMS, P.c. BYv-<f /! $Zu David R. Breschi, Esquire P.O. Box 88 Harrisburg, P A 17108 (717) 763-1121 Attorney for Defendants 121314 _',-O,.,^' :,,',"} ..",,,,uY "'''''_:,,,~<,,- '.~",{'_ ID-i .~-,.,"". 'A ;_...,.......,.~ .~."..".._.__..__..__.__.- -'0 ,.,"~., .....- ..... ..... ~- ,. .. t i IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE CIT GROUP/EQUlPMENT FINANCING, INC., Civil Action Number: 2000-3501 Plaintiff v. MORGAN HUGHES, INC., AND MORGAN C. HUGHES Defendants ANSWER OF THE CIT GROUPIEQUlPMENT FINANCING. INe. TO NEW MATTER NOW COMES The CIT GrouplEquipment Financing, Inc. ("CIT" or "Plaintiff'), by and through its counsel, Duane, Morris & Heckscher LLP, and files this Answer to New Matter, and states as folIows: 39. This is an incorporation paragraph to which no response is required. 40. Admitted in part and denied in part. It is admitted that Defendant Morgan Hughes, Inc. made payments under the Security Agreement. It is denied that Morgan Hughes, Inc. or Morgan C. Hughes has fully performed the obligations under the Security Agreement. By way of further answer, Morgan Hughes, Inc. is currently past due under the Security Agreement for the monthly installments due from July 15, 1998 through the November 15, 1999 maturity date and Morgan C. Hughes has failed to pay under his Guaranty after proper demand was made thereunder. """,I"-"'m~,,_ . 41. Denied as stated. It is admitted that Defendants. following the commencement of this action, have offered to return the Collateral to crr. By way of further answer, Defendants have attached unacceptable conditions to their offer to return the Collateral. 42. Denied as stated. crr is willing to accept return of the Collateral if Defendants agree to allow crr to sell the Collateral and enter a judgment against Defendants for the deficiency. 43. Denied as stated. It is admitted that Defendants, following the commencement of this action, have offered to allow crr to inspect the Collateral. Defendants did not allow crr to inspect the collateral before the filing of this action, despite crr's repeated requests to do so. 44. Denied as stated. crr is willing to inspect and accept return of the Collateral if Defendants agree to allow crr to sell the Collateral and enter a judgment against Defendants for the deficiency. 45. Denied. Paragraph 45 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 46. Denied. Paragraph 46 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. By way of further answer, Morgan C. Hughes executed a Guaranty in favor of crr pursuant to which he agreed to personally and unconditionally guarantee the obligations of Morgan Hughes, Inc. to crr under the Security Agreement. Morgan Hughes, Inc. is in payment default to crr and, to date, Morgan C. Hughes has refused to honor the Guaranty by failing to pay the indebtedness owing to crr under the Security Agreement despite proper demand for payment being made under the Guaranty. 47. Denied. Paragraph 47 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. - 2- "~ -liII&l.i1I,,:.! 48. Denied. It is specifically denied that at no time during the existence of the Agreement attached as Exhibit A to crr's Complaint did Morgan Hughes, Inc. make a payment pursuant to the conditions provided for in the Agreement. 49. Denied. Paragraph 49 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 50. Denied. Paragraph 50 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 51. Denied. Paragraph 51 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 52. Denied. Paragraph 52 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 53. Denied. Paragraph 53 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 54. Denied. Paragraph 54 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 55. Denied. Paragraph 55 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 56. Denied. Paragraph 56 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. 57. Denied. Paragraph 57 sets forth legal conclusions to which no response is required. To the extent those allegations are deemed factual, they are denied. - 3 - "'~ = ~ ,I ;~L;-: WHEREFORE, Plaintiff, The crr Group/Equipment Financing, Inc., respectfully requests that this court enter judgment in favor of the Plaintiff and against Defendants Morgan Hughes, Inc. and Morgan C. Hughes for the relief requested in the Complaint. Respectfully submitted, DUANE, MORRIS & HECKSCHER LLP Date: ?J/J/ /00 . Attorneys for: The crr GrouplEquipment Financing, Inc. -4- ,. AUG. -09' 00 (WED) 14: 51 DUANE, MORRIS & HECK SCHER TEL:717 232 4015 _d" - .~', "_<'.' 0 '<~",', - I . I "'iM:li j P.007 ij L, " ^ ~,,-~. VERIFICATION I. W.E. Oberlander, hereby aver and s~ate that I am a Portfolio Specialist for The CIT GrouplEqllipmlln~ Financing, Jnc. llnd have read the foregoing document which has boon drafted by my counsel. The factual statements contained therein are trlle an" correct to the best of my knowledge, information llnd belief lIlthough the language is thal of my counsel and, to the extent that the content of the foregoing document is tha~ of counsel,l have relied upon counsel in making this verification. This statemem is mw:le subject to the penlllties of 18 PII. C.S.A. ~ 4904 relaling to unsworn falsification to authorities, which provides thllt if I make knowingly false statements, I may be sllbjec[ to criminal penalties. Dilled: 8-(0 -00 kJ.[.oW~il) W.E. Oberlander, Porlfolio Specialist W. E. OBERLANDER liUG\60033.1 -5- -;' CERTIFICATE OF SERVICE On this 1L~ay Of~, 2000, I, Sherry 1. Weigel, a secretary in the law offices of Duane, Morris & Heckscher LLP, hereby certifY that I have served this day true and correct copies of the foregoing ANSWER of the CIT Group/Equipment Financing, Inc. to New Matter in the above-captioned matter, by depositing same in the United States First Class Mail, postage prepaid, in Harrisburg, Pennsylvania, to those persons and addresses indicated below: David R. Breschi, Esquire Melissa A. Swauger, Esquire P.O. Box 88 Harrisburg, PA 17108 Attorneys for Defendants ~J~ Sherry 1. eigel -6- IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE crr GROUP/EQUIPMENT FINANCING, INC., Civil Action Number: 2000-3501 Plaintiff v. MORGAN HUGHES, INC., AND MORGAN C. HUGHES Defendants PRAECIPE TO MARK COMPLAINT DISCONTINUED AND ENDED To the Prothonotary: Please mark the above action discontinued and ended. I, ~ ~;='"-~i DUANE, MORRIS & HECKSCHER LLP By. Brian W. Bisignani, Esquire Jennifer 1. Murphy, Esquire 305 North Front Street P.O. Box 1003 Harrisburg, P A 17108-1003 (717) 237-5500 Attorneys for: The crr Group/Equipment Financing, Inc. HBG\64B46.! ...ill!!"~ -J..h '~~~~ ~~~.illi.~~,",,;"'i"""'3h"h:h'""~'iil>i;<J::~;'3-'~J1i~~j.!~~~~~~_"ililtill;.~!!~jI,'JII;illl ">" ",0 .., .,,". "~%" ,',", , _~ ~ r.<", _ ""- ,. "~ ., ~'" , -~ ....-- -> ~"~- o ;:= -06,) rnrTl z~- ~~;~- ~c.) ./-,~ r-' ~~,:^~ z -~- -< ~~. f.:::" C) :::::2 ,---r- '1-- ;"-.,) "In; f-v- c-' -=-t'- " 1~~ :: 'r-.'I '6~~ --4 ~- 5j -< .'\-",\ r;? c;- r0 'I