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HomeMy WebLinkAbout03-1943Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC. DONALD B. HEARN and CONSTANCE A. HEARN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW NO. (~b~-- lqq3 ASSIGNED TO: PRAECIPE TO THE PROTHONOTARY: Kindly enter judgment in favor of the Plaintiff, MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, and against the Defendants CJH LEASING, INC, DONALD B. HEARN and CONSTANCE A. HEARN in the sum of $266,880.18, plus the following amounts accruing after 3/19/2003: Interest at the rate of 8.250% per annum ($ $53.82 day) and late charges of $135.30 per month upon the Complaint in Confession of Judgment and Confession of Judgment filed herewith. KOZLOFF STOUDT Professional Corporation ~f~ ~.~rry, a~le, Esquire ~s for Plaintiff Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 · Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC. DONALD B. HEARN and CONSTANCE A. HEARN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW NO. 03 - ASSIGNED TO: CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney in the Note and Guaranty, true and correct photostatic copies of which is attached to the Complaint filed in this action and which appear therein as Exhibits "A" and "B", I appear for Defendants CJH LEASING, INC., DONALD B. HEARN, and CONSTANCE A. HEARN and confess judgment in favor of the Plaintiff and against the Defendants in the sum of $266,880.18, plus the following amounts accruing after March 19, 2003: Interest at the rate of 8.25% per annum ($53.82 day) and late charges of $135.30 per month. KOZLOFF STOUDT Professional Corporation Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 · Attorneys For: Plaintiff : MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC. DONALD B. HEARN and CONSTANCE A. HEARN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW NO. ASSIGNED TO: CERTIFICATION OF ADDRESSES I, Barry W. Sawtelle, Esquire, do hereby certify that the addresses of the following parties are as set forth below: Plaintiff: Manufacturers and Traders Trust Company c/o Barry W. Sawtelle, Esquire 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 Attorney for Plaintiff Defendants: CJH LEASING, INC. 8 Brenneman Circle Mechanicsburg, PA 17055 Dated: DONALD B. HEARN CONSTANCE A. HEARN 893 Hawthorn Avenue Mechanicsburg, PA 17055 April 22, 2003 KOZLOFF STOUDT Professional Corporation Prt~tor~rys for Plaintiff Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 · Attorneys For: Plaintiff .. .- MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC. DONALD B. HEARN and CONSTANCE A. HEARN, Defendants CIVIL ACTION - LAW NO. (~2 -- ASSIGNED TO: : : IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA COMPLAINT IN CONFESSION OF JUDGMENT The Plaintiff, MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, files this Complaint pursuant to Pennsylvania Rule of Civil Procedure 2951(b) for judgment by confession and avers the following in support thereof: 1. The Plaintiff, MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY ("M & T'), is a New York banking corporation organized and existing under the laws of the State of New York and maintaining a place of business at 501 North Wyomissing Boulevard, Wyomissing, Berks County, Pennsylvania. 2. The Defendants are: a. CJH LEASING, INC., a Pennsylvania business corporation maintaining its principal place of business and registered address at 9 Brennenman Circle, Mechanicsburg, Cumberland County; and b. DONALD B. HEARN and CONSTANCE A. HEARN, adult individuals residing at 893 Hawthorn Avenue, Mechanicsburg, Cumberland County, Pennsylvania. 3. On April 9, 1998, Defendant CJH LEASING, INC. made, executed and delivered to Financial Trust Company, predecessor in interest to M & T, a promissory note (the "Note"), a true and correct copy of which is attached hereto, marked Exhibit "A' and incorporated herein by reference, to evidence a loan (the "Loan") made by Financial Trust Company to Defendant CJH LEASING, INC. 4. As security for the Loan, Defendants DONALD B. HEARN and CONSTANCE A. HEARN, on or about April 9, 1998, executed and delivered to Financial Trust Company their personal guaranty of the Loan (the "Guaranty"), a true and correct copy of which is attached hereto, marked Exhibit "B' and incorporated herein by reference. 5. In connection with the execution of the Guaranty, Defendants DONALD B. HEARN and CONSTANCE A. HEARN received, reviewed and executed a Disclosure for Confession of Judgment, a true and correct copy of which is attached hereto, marked Exhibit "C' and incorporated herein by reference. 6. The Loan was in the principal amount of $280,000.00, with interest thereon pursuant to the terms of the Note, payable in monthly installments on account of principal and interest, commencing on May 9, 1998 and continuing on the same day of each month thereafter, with the entire balance due on demand on or after April 9, 2008. 7. Defendants are in default of their obligations under the Note and Guaranty because the payments of principal and interest due on December 9, 2002 and monthly thereafter, are due and have not been paid, whereby the entire balance of principal and all interest due thereon have become due and payable forthwith, together with costs of collection and reasonable attorney's fees. 8. On March 19, 2003 demand was made upon the Defendants for payment in full of all sums due under the Loan and the Guaranties. A true and correct copy of the said demand is attached hereto, marked Exhibit "D" and incorporated herein by reference. The following amounts are due on the Note: Balance of principal Accrued but Unpaid Interest Accrued but Unpaid Late Charges Satisfaction Fee Reasonable Attorneys Fees TOTAL as of 3/19/2003 Plus, the following amounts accruing after 3/19/2003: Interest at the Rate of 8.250% per annum ($53.82 per day) $234,845.83 4,720.94 3,247.20 30.00 24_3_~_063.21 $266,880.18 Late Charges at the Rate of $135.30 per month 10. Financial Trust Company Company by M & T. 11. jurisdiction. 12. On or about August 21, 2000, the Note and the Guaranty were assigned by to M & T in connection with the acquisition of Financial Trust Judgment has not been entered on either the Note or the Guaranty in any Pursuant to the warrant contained in the Note and Guaranty, judgment may be entered for the M & T and against the Defendants in the sum of $266,880.18, as set forth above. WHEREFORE, pursuant to this Complaint, and in accordance with Pennsylvania Rule of Civil Procedure 2952(g), Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY demands judgment against the Defendants in the sum of $266,880.18, together with accrued interest, costs of suit and reasonable attorneys fees and demand for such judgment is hereby made. KOZLOFF STOUDT Professional Corporation ~'" ~r~~ell~, Esquire /~tforneys for Plaintiff Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC. DONALD B. HEARN and CONSTANCE A. HEARN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW NO. ASSIGNED TO: VERIFICATION The undersigned, being the authorized representative of the Plaintiff in this matter, verifies that (s)he is authorized to execute this Verification on behalf of the plaintiff and further, having read the attached Complaint, hereby verifies that the within Complaint is based on information furnished to counsel, which information has been gathered by counsel in the course of this lawsuit. The language of the Complaint is that of counsel and not of the signer. The signer verifies that (s)he has read the attached Complaint and that it is true and correct to the best of the signer's information and belief. To the extent that the contents of the Complaint are that of counsel, the signer has relied upon counsel in taking this Verification. This Verification is made subject to the penalties of 18 Pa.C.S.A. Section 4904 relating to unsworn falsifications to authorities. DATED: April 9, 2003 EXHIBIT "A" ' o ssoRY NoTs ~ ~- ~nl,/and do nor hm~ me ~coJicabJ~ib/of ~his document ~o a~y oad~c Borrower: ~H Leasing, Inc 9 Brenneman Circle Lender: Financial Trust Company Mechanicsburg, PA 17055 Main Office One West High Street -.. Carlisle, PA 17013 P~ncipal Amount: $280,000.00 Interest Rate: 8.250% Date of Note: April 9, 1998 PROMISE TO ~AY. CJH Leasing, Inc. ("Borrower") promises to pay to Financial Trust Company ("Lender"), or order, in lawful money et the United States of America, the principal amount ct Two Hundred Eigh~ Theu~nd & o0/100 Dollars (S280,000.00), together with interest at the rate of 8.250% per annum on the unpaid principal balance ~rom April 9, 1998, until paid in PAYMENT. Borrower will pay this loan in accordance with the following payment schedule: The Joan, together with all accrued unpaid interest, shall be due and payable by Borrower upon demand o~ Lender at any time and from time to time on or after April 9, 2008. Unle~ and until demand is made the loan shall be payaa~e in One Hundred Eig~ (180) consecutive monthly principal and interest payments, initially of S2,706.06, beginning May 9, 1998, at a fixed rate of 8.25% for five years. On May 9, 2003, the interest rate will be adjusted to floating with Financial Trust Company Prime Rate (the "Index") plus 1.00% per annum. The interest rate change Will not occur more oran than each ~ay. On, Apr, 9, 2003, and eve~ year thereafter, the monthly payment Will be adjusted based on t~e interest ~te in effect, the unpaid principal balance and the remaining term of the loan. Lender rose.es the right at any time and ~om time to time to adjust the monthly payment in the event of negative amo~i~tJon. Borrower's final payment due April 9. 2013, shall be for ali principal and accrued interest not yet paid.. . The annual images: rate for this Note is comeuted on a ~55/360 basis; that is, by aCcl~ ng the ra~o of the annual interest rs;a cv~r z ~ear o~ 360 u~dcJ ed b,/ ;he cu/s;andin~ cnnc~pa ~slan~e, muJtJCiJeC ~y the ac:uAl number cf C~,/s the ~rincioaJ balance ~s outstanding. Sc~,.ver will pay Lander s~ Lender's ~cC~ss shown a~ove or at such other Claca ~s Lender may designat~ ~n writing. Unless cthe~ise ~greee cr racvJrad b~ a~fics~le law, payments wiiJ c9 ~p~lied first ~o Accrued unpaie interest, ~hen to principal, and any remaining ~mount to any undo d co,ec~cn 'costs ~nd late PREPAYMENT PENALTY. Upon prepayment of this Note, Lender is entitled to the following prepayment pertain: Upon prepayment of t~is Note, Lender is entitle~ to the following prepayment penal~: A prepayment premium, equal to 1% of the amount prepaiO, w be charged ~or each year cr ~o~ion of a year remaining on the loan at the time of prepayment. The premium may be ~imited to 5% declining over a We year term. ~ce3t for the foregoing, Borrower may pay all or a potion cf the amount owed earlier than it is due. 'Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. ather, they v41[ reduce the principal balance due and may result in Borrowers m~ing fewer payments. ~cap/for the fcr~cing, Borrower may a~ a, or s Cc~Jcn of the amount owed earlier /hen i~ ~s due. Esdy payments wdt not, unless agreed to by Lender m '.vn~J~c, relieve ~orrower orrower's c~iGs[~on to continue to make ~ayments unC~r the ~ayment scheQuJe. ~ather, they will reduce /he'~rincipal ~aisnca ;ua and may result in Borrower tasking fewer payments. LATE CHARGE. If a Payment is ~5 days or more late. ~crrower will be charged $.000% of the regularly ~heduled payment. f c ~ a ~n e a r :;~ku: ~nv p,ymBnt ,,hen ~u= ~ -, ....... contained J it r ' ._ ~ .~ -- .-. = .....var creaks any ;h.s ,No~e or ~ny agreement reid[ed [o this Note, or in any other agreement or loan Borrower hss ,,vifh Lender. (c) ~=rrcwer defau!ts under 8ny other ,erin, obligation, csvensnf, cr conditic~ any Joan, exre~s;cn of credit, securih/ screemen/, purc2~se cr sales agreement, cr ~ny other agreement in ~svcr of any other .;reciter cr parson thai may materiaii,,, =~=~, - material reseed: 9Jthe~ ' r ~-~ ,. t m ~n~=. ~ o~cn ~¢rower's behalf fs ~;s~ cr misled . now or at the time made or ~umisheC. (e) Borrower ~ecomas insolvent, a receiver is Appointed for &m/ oa~ of Borrower's Prccerty, Ecrrc'../er makes an in ~nysssignment for ~he benefi~ cf creditors, or ~ny oroca=>~no is ccmm ~ =' , - any bankruc:cv cr nsclvency taws. (f) ,Any c~editor tdes.~o ~ ' . , -- ~ ,ended .~ther by ~crr ~ ...... · , ~Ke any of Borrower s =rnn~m, .... ; ...... , - o~e. ~' =~=ms, Borrower under mcJudes a car~;snmen{ of any cf 8orrower's accounts '.virh Lender. (gl Any guarsn'~cr dies or any of the c~her events described n this default section ...... / ~,, ~, ,n ~n~cn Lancer has a hen cr securi~/ interest. Th~s occurs with ,'escect ~o any guarantor cf ~his Ncte. (h~ A material Adverse chAnGe occurs in Bo~ower's financial ccnCi~Jcn, :: Lender believes the prospect of ¢&Tment or performance c¢ the Indebtedness is ~mpaired. (i) Lender in Good faith deems itself insecure. LENDER'S RIGHTS. U¢cn default, Lender m~y, ~ffer ~h/ing such notices as required by applicab e law, declare the entire ;nc~:c orincip~i batance cn this Note ~nc A:~ ~ccrued uncaic rotates[ immeOia[ep/ ;ua. and then Borrower ',viii 2~y that Amount. Lender may ~ire or ts,.., someone else ~o hcJc collect this Nc:e ;f Borrower coos not =~y. Borrower ~;so ',viii pay Lender that amount. This includes, su~lec: ~o ~ny ~m~[, ;near ~Dpiic~oie law. Lander's attcr~s,/s' fees ~nd Lender's JC~J excenses whether or not ~here is a Js,,vsuit, includJn~ · ~s.[o modi~ or vacate any ~u;cma[c stay or in -n~-; ¢- , _ ' ~ -,, ~p,icaole l~w, Borrower =* .... .,'._,, - .% ~"~,,~, -upea~s, a~.d any anticipated pcst-judgme~; collect/on ~e~i~o~ ~,~ ,-,,, ~/ ~ny cou~ costs, in ~ddJtJcn [o ~tl omar sums orov Ced by law if :,,~ .... ~ - ' connection w::.~ :~s Note, m~erest wiil continue ro accr;e on ~his Note ~er jucGme~ at fha existing interest ,'a[e proOidec for :~ :2~s Note. This Note has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. If there is a lawsuit. Eorrower agrees upon Lender's request [o submit to the jurisdiction of the couds of Cumberland County, the Commonwealth of Pennsylvania. This Note s~all be governed by and construed in accordance wil~ the laws of the Commonwealth o~ Pennsylvania. RIGHT OF S~OFF. Borrower grants ~c Lender a ccnrrsc~u~l Possessory secur:~/ :nteres~ m, and here~y assigns, conveys. ;eiivers, ptedges, transfers to ~e~cer ail Borrower's ncht title and nferes~ in and account), inc:;=~ng w:/hou[ limitation ~11 ;¢ ...... ~ ........... [o, Borrowers scCcunts with Lender (whether checkm~ s~'4n~s, or some other ~jl ~ ............. u ,cmuy d/~rn Someone eisa ~nc ~11 accounts Borrower may coon in the fu;ur= excduding however me ~xrent perturbed by appiicacle law, to charge or sercff ~il sums owing a se~uri~ · and Kec;~ accounts, and all trust 8cccunts ~or winch the grant of ',C:arest would 3e pronib ted by law Borrower authorizes Lender, fc on tins, ~c:a against any and all such accounts. COLLATERAL. This Note is secured by a Montage ~ *=~ ...... a .... &~ril 9, ~998, to Lander cm reel proce~ located in CumUerlanC ~cu¢~/, Commonwealth o¢ Pennsyivama .... :he ,arms a~d Cond/tlo~s o¢ wmcn are ~ereu~ incorporated ~nd m~ce a pa~ of t~is No~e. · .04-09-1998 PROMISSORY'NOTE : " (Continued) , Page 2 GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. [Jpcn any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from iiabili/,/. All such padJes agree that Lender may renew or extend (repeatedly and for any length of time) this loan, cr release any party or guarantor or collateral; or impa r, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessa¢/by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. If any oortion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. ' CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARy OR CLERK OF ,ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEW'HERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ALL AblOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL. BALANCE AN[~ ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVE~',,rT NOT LESS THAN FiVE HUNDRED DOLLARS ($500}- ON WHICH JUDGME~",cr OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGME~',CI' AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO 8ORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEFENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: EXHIBIT "B" COMMERCIAL GUARANTY D.ate M~:/i i :iiLOan~Nb:i~:~: ...... li'.'i! t off! I eferences in the shaded .......... }, an,., ,.~,., ,,u, ,,,,,,L u~ ~Pp~CaDIII~ Or this aocument to any paMicul Borrower: CJH Leasing, Inc. Lender: Financial Trust Company 9 Brenneman Circle Mechanicsburg, PA 17055 Main Office One West High Street Carlisle, PA 17013 Guarantor: Donald B. Hearn and Constance A. Hearn 893 Hawthorn Avenue Mechanicsb~rg, PA 17055 AMOUNT OF GUARANTY. This is a guaranty of payment of the Note, including Without limitation the principal Note amount of Two Hundred Eighty Thousand & 00/100 Dollars ($280,000.00). GUARANTY. For good and valuable consideration, Donald B. Hearn and Constance A. Hearn ("Guarantor") absolutely and unconditionally guarantee and promise to pay, jointly and severally, to Financial Trust Company ("Lender") or its order, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of CJH Leasing, Inc. ("Borrower") to Lender on the terms and conditions set forth in this Guaranty. DEFINITIONS. The following words shall have the following meanings when used in this Guaranty: Borrower. The word "Borrowed' means CJH Leasing, Inc.. Guarantor. The word "Guarantor" means Donald B. Hearn and Constance A. Hearn, who are signing this Guaranty jointly -:~d severally. Guaranty. The word "Guaranty" means this Guaranty made by Guarantor for the benefit of Lander dated April 9, I998. Indebtedness. The word "Indebtedness" means the Note, including (a) all principal, (b) all interest, (c) all Fate charges, (d) all loan fees and loan charges, and (e) all collection costs and expenses relating to the Note or to any collateral for the Note. Collection costs and expenses include without limitation all of Lender's attorneys' fees and Lender's legal expenses, whether or not suit is instituted, and a~.crneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-jufgment collection services. Lender. The word "Lender" means Financial Trust Company, its successors and Assigns. Note. The word "Note" means the promissory note or credit agreement dated April 9, 1998, in the original principal amount of $280,000.00 from 8orrower to Lender, together with All renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the prom~ssc~/ note or agreement. Related Documents. The words "Related Documents" mean and include without limitation all promissorY notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. MAXIMUM LIABILITY. The maximum liability of Guarantor under this Guaranty shall not exceed at any one time the amount of the Indebtedness described above, plus all costs and expenses of (a) enforcement of this Guaranty and (b) collection and sale of any collateral securing this Guaranty. The above limitation on liability is not a restriction on the amount of the Indebtedness of Borrower to Lender either in the aggreca~e or at any one time. If Lender presently holds one or more guaranties, or hereafter receives additional guaranties from Guarantor, the rights cf Lancer under all guaranties shall be cumulative. This Guaranty shall not (unless s~ecifically provided below to the contrarY) affect or invalidate any such other guaranties. The liability cf Guarantor will be the aggregate liability of Guarantor under the terms of this Guaranty and any such other unterminated ~3uaranfies. NATURE OF GUARANTY. Guarantor intends to guarantee at all times the performance and prompt paym.ent when due, whethsr at maturity or earlier by reason cf acceleration or otherwise, of all Indebtedness within the limits set forth in the preceding section of this Guaram% The obligations of Guarantors AP, all be joint and several. Lender may proceed against any of the Guarantors individually, against any group of Guarantors, or against all the Guarantors in one action, without affecting the dght of Lender to proceed against other Guarantors for amounts that are covered by this Guaranty. Any inability/ of Lender to proceed against any Guarantor (whether caused by actions of a Guarantor or of Lender) will not affect Lender's right to proceed against any or all remaining Guarantors for all cr part of the amounts covered by this Guaranty. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice fo Guaramcr or to Borrower, and will continue in full force until ail Indei3tedness shall have been fully and finaJly paid and satisfied and ail other obligations cf Guarantor under this Guaranty shall have 0eon performed in full. Release of any other guarantor or termination cf any other guaranty of the IndeDfecness shall not affect the liability of Guarantor under this Guaranty. A revocation received by Lender from any one or more Guarantors shall not affect the liaciJity of any remaining Guarantors under this Guaranty. GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, without notice or demand and without lessening Guarantor's liability under this Guaranty, from time to time: (a) to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (b) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of/he Indebtedness. security for the payment of this Guaranty or the [ndebte~lne~, and exchange, enf~rcel waive, subordinate, fail or decide not to perfect, and release any such security, With or without the substitution of new collateral; (d) to release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (e) to determine how, when and what application of payments and credits shall be made cn the Indebtedness; (f) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; '(g) to sell, transfer, assign, or grant ~ participations in all or any part of the Indebtedness; and (h) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (a) no representations or agreements of any kind cave been made to Guarantor which would limit or qualify in an,/ way the terms of this Guaranty- (b this G ar nt ~ x Borrower's recuest and not at the request of Lender- (c) Guarantor has full ~3ow r -~-, ................ )-- .. a y's e ecuted at this Guaran:-/Cc not conflict with or result in a default under any agreement cr other instrument binding upon Guarantor and dc'not result in a violation ~ e, r~,,, ~,,u aumomy [o enter Info trois (~uaFaR~,: (d) the provisions of of any law. ,e'~ulation, court decree or order applicable ID Guarantor; (e) Guarantor has not and will not, without the prior writ:eh consent of Lender, o74 0.-1..09-1998 COMMERCIAL GUARANTY (Continued) Page 2 sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose cf all or substantially all of Guarantor's assets, or any interest therein; (f) upon Lender's request, Guarantor will provide fo Lender financial and credit information in form acceptable [o Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly presen't the financial condition o, Guarantor's financial condition since [he date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (h) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid faxes) against Guarantor is pending or threatened; (i) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (i) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Bprrower, GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any rich'1 fo require Lender (a) fo continue lending money or to extend other credit fo Borrower; (b) to make any presenlmenf, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or .of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guaram, or in connection with the Indebtedness or in connection with the creation of new or addttionaJ loans or obligations; (c) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (d} to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (e) to give notice of the terms, time, and place of any public or private sale ct personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Commercia Code; (f) to pursue any other remedy within Lender's power; or (g) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (a) any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (b) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (c) any disability or other defense of 8orrower, of any other guarantor, or of any other person, or by reason of the cessation of Borrower's liability from any cause whatsoever, other than payment in full in legal tender, cf the Indebtedness; (d) any rght to claim discharge of the IndePfedness on the basis of unjustified impairment of any collateral for the indebtedness; (e) any statute of iimttaticns, if at any time any action or suit brought by Lender against Guarantor is commenced there is outstanding Indebtedr~ess of Borrower to Lender which is not barred by any apolicable statute of limitations; or (f) any defenses given fo guarantors at law or in equity other than actual payment and performance of ' third party, on fha Indebtedness and =the Indebtedness. If payment is made by Borrower, whether voluntarily o~' otherwise, thereafter Lend.r is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or by any similar person under any federal or state bankruptcy law or law for the relief of debtors, the indebtedness shall be considered unpaid for the purpose of enforcement of this Guaranty. or to any Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment cr similar right, whether sup2 claim, demand or right may be asserted by fha Borrower, the Guarantor, or both. . GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of [he waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that, under the circumstances, fha waivers are reasonable and not contrary to public potic,/ or law. If any such waiver is determined to be contrary to any apolicable Iow or public policy, such waiver shait be effective only to the extent permitted by law or public policy. , LENDER'S RIGHT OF SETOFF. In addition to all liens upon and rights of setoff acainst Lender b,/ law, Lender shall have, with respect to Guarantor's cbligations to L_~nder the moneys, securities or other property of Guarantcr given to contractual pcssessory security interest in and a dght of setoff against, and Guarantor hereby assigns, conveys, delivers, pledges, and transfers to · under this Guaranty and to the extent permitted by law, a Lender ail cr Guarantor's right, title and interest in and fo, all deposits, moneys, securities and other property of Guarantor now or hereafter in the possession sf cr on deposit with Lender, whether held in a general or special account or deposit, whether held jointly with someone else, or whether held for safekeeoing or otherwise, excluding however all IRA, Keogh, and trust accounts. Every such security interest and right of setoff may be exercised without demand upon cr notice to Guarantor. No security interest or right of setoff shall be deemed to have been waived by any act or conduct cn ~he Cart of Lender or by any neglect to exercise such right of setoff or to enforce such secudty'interest or by any delay in so dOrrrg. Every right of seioff and security interest shall continue in full force and effect until such right of setoff or security interest is specifically waived or released by an instrument in writing executed by Lender. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created, shall be pnor fo any claim that Guarantor may now have or hereafter acquire against Borrower, wheiher or not Borrower becomes i,~solvenf. Guarantor hereby express y subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim that Lancer may now or hereafter have against Borrower· In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary licuidation, or otherwise, the assets of Borrower applicable lo the payment cf the ciaims of both Lender and Guarantor shall be paid [o Lender and snail be first applied by Lender fo the Indebtedness of Borrower to Lender. Guara.ntcr does hereby assign bankruptcy of Borrower; provided however, fhaf such assignment shall be effective only for the purpose of assuring fo Lender full payment in legal tender of the indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obli.cations of Borrower to Guarantor s,~.all se marked with a legend that the same are subject lo this Guarani,/and snail be delivered to Lender. Guarantor agrees, and Lender ~ereby is authorized, in the name of Guarantor, from time to time tc execute and file financing statements and continuation statements and to execute such other documents and tc take such other actions as Lender de°ms necessary or appropriate fc perfect, preserve and enforce its rights under this Guaranty. MISCELLANEOUS PROVISIONS. The foilowing miscellaneous provisions are a part cf this GuarantY: Amendments. This Guaranty, together with anv Rotated Documents, constitutes fha entire understanding and agreement cf the parties as [o the matters se., forth in this Guaranty. No alteration ~f or amendment to this Guaranty shall be effective unless given in writing and s~gned by the par'b/ or part es sought to be..-charged or bound by the alteration or amendment. Applicable Law. This Guaranty nas been delivered fo Lender and accepted by Lender in the Commonwealth of Pennsylvania. If there is a ; lawsuit, Gcarantor agrees upon Lender's request to suPmit to the jurisdiction of the courts of Cumberland Count' Commonwealth of Penns'/Ivar~=a. This Guaranty shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guarani',/. Lender may pay someone else to help enforce this Guaranty, and Guarantor snail pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' fees and legal expenses whether cr not there is a lawsuit, mctudJng attorneys' fees and legal expenses for bankruptcy proceedings (and including efforts to modify or 04-.09-1998 COMMERCIAL GUARANTY (Continued) Page ~ vacate any ~a~u.!0.rna!ic stay or injunction) appeals, and any anticipated ost-'ud, m n .. n s r ' ~.u ~ ..... .;~,.u,,=, ,~ ,=~ may be di,-ec:ed by the ,:curt P J g e t collectlo e vices. Guarantor also shall pay all court costs Notices. All notices required to be given by either party to the other under this Guaranty shall be in writing, may be sent by [elefacsimile (unless otherwise required by law), and shall be effective when actually delivered or when deposited with a nationally recognized overnight courier, or when deposited in the United States mail, first class postage prepaid, addressed to the party to whom the notice is to be given at the address shown above or to such other addresses as either party may designate to the other in writing. If there is more than one Guarantor notice [o any Guarantor will constitute notice to all Guarantors. For notice purposes, Guarantor agrees to keep Lender nformed at ail times of Guarantor's current address. Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guarani,/in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this ,. Guaranty. or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and any one or more of them. The words "Guarantor," "Borrower," and "Lender" include the heirs, successors, assigns, and transferees of each of them. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty,. If a court of competent jurisdiction finds any provision of this Guarartty to b'e invalid or unenforceable as to any person or circumstance, such finding shall not render that provision invalid or unenforceable as to any other persons or circumstances, and all provisions of'this Guaranty in all other respects shall remain valid and enforceable. If any one or more of Borrower or Guarantor are corporations cr ~2artnerships, it is not necessary, for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, or agents aping or purporting to act on their behalf, and any Indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Waiver. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in wdting and signed by Lender. No deiay or omission on the part of Lender in exercising any right shall operate as a waiver of such dght or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's dght otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute continuing consent ~o subsequent instances where suc.i consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES PROTHONCTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, AND EMPOWERS ANY A'FYORNEY OR THE OR ELSEWHERE, TO APP&:~R AT ANY TIME FOR GUARANTOR AFTER A DEFAULT UNDER THIS GUARANTY, AND WITH OR WITHOUT COMPLAINT FILED, AS OF ANY TE~M, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, ALL ACCRUED INTEREST, LATE CHARGES. AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN A%FORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FiVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED !N THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORI%,.-', BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXECUTION CF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPEN. DENT LEGAL COUNSEL. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY." NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED APRIL 9, 1998, THIS GUA'R'ANTY HAS BEEN SIGNED AND SEALED BY THE UNDERSiGNED. ...~... -- GUARANTOR: ,× .."-z /*. ,i I// /// D'o'n~'ld B. Hearn~ ........' '"' ' ' "~.Y .~' ?r' Constance A. Hearn EXHIBIT "C" DISCLOSURE FOR CONFESSION OF JUDGMENT i;i!~iP[i!~ipa~ :: :i::' I :!!:.L°an :: Date : i: f::: i~!i!i~;MatUrity:..:[ ~oa~.NOii~i~iii!?:i~I;::iii::i :C~ii i!iitiii~C0[i~i~ ~;i~?ii!iii?i~?i!?.i!~i~A~0un~i~::?:~i~i:i:l?:office~:::t::~i¢itiai~~ ] References in the shaded area are for Lender's use only and do not limit the applicability of this d;cument to any particular loan or item: .... ) Borrower: Guarantor: CJH Leasing, Inc. 9 Brenneman Circle Mechanicsburg, PA 17055 Donald B. Hearn and Constance A. Hearn 893 Hawthorn Avenue Mechanicsburg, PA 17055 Lender: Financial Trust Company Main Office One West High Street Carlisle, PA 17013 DISCLOSURE FOR CONFESSION-OF JUDGMENT I AM EXECUTING, THIS /'~'DAY OF /~/~/~! L-.- , 19_~,, A GUARANTY OF A PROMISSORY NOTE FOR $280,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDE.~ MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I ED(PRESSLY AGREE AND CONSENT TO LENDER'S ENTERING~.I~DGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE p ' ~.~ ~.:::. ~ ROVISION. N T ALS: :~:~'-'~ CONFESSION OF JUDGMENT B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. HOWEVER, LENDER MUST PROVIDE NOTICE TO ME UNDER APPLICABLE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LE.~..~../~cI'S. EXECUTING ON THE JUDGMENT, IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW. ,,,T,ALS: C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, AND BY PLACING MY INITIALS NEXT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT: INITIALS 1,.. J WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE GUARANTY. ¢; --A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS Sl0,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCL~AS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. AFFIANT: Donald B. Hearn _? - ~, i':;:..: (SEAL) Constance A. Hearn LASER PRO, ~e;.. '5 =att. & T.M Off., Vet. 3.24(c) 1998 CFI ProServ'c.,s, Inc. Allr~g~t$ reserved. [PA-C30 CJH,LN CS.0VLI EXHIBIT "D" James T. Grady Vice President Special Assets Department Telephone 610.373.3996 Facsimile 610.373.0606 E-mail: i.qrady~,mandtbank.com March 19, 2003 CJH Leasing, Inc. 9 Brenneman Circle Mechanicsburg, PA 17055 ATTN: Mr. Donald Hearn RE: Manufacturers and Traders Trust Company Account No. 2727263016 Original Principal Amount: $280,000.00 Dear Mr. Hearn: NOTICE I am the loan account officer at Manufacturers and Traders Trust Company (the "Bank"), handling your account with respect to your obligations under a commercial loan Promissory Note dated April 9, 1998 in the original principal amount of $280,000.00 as referenced above. You are in default under that NOte by virtue of your failure to make payments of interest and principal when due. This letter constitutes notice to you that the Bank hereby declares.default and exercises its rights to accelerate the entire balance due under the subject Promissory Note. Demand is -- hereby made upon you to remit paYment, in full, within ten (10) days of the date of this letter, of the entire balance due as follows: Principal $234,845.83 Interest 4,720.94 Satisfaction Fee 30.00 Late Fee 3,247.20 Total Due as of March 19, 2003 $242,843.97 Per diem after March 19, 2003 $53.82 Manufacturers and Traders Trust Company · 501 North Wyomissing Boulevard, Wyomissing, PA 19610 · (610) 373-8807 March 19, 2003 PAGE TWO Payment should be made directly to the Bank at: Manufacturers and Traders Trust Company;, ATTN: James T. Grady, 501 N. Wyomissing Boulevard, Wyomissing, PA 19610. If payment in full is not received within the time provided, the Bank may exercise its legal rights and remedies to enforce collection against you, or against the collateral pledged as security for your obligations. The Bank's rights include entry of judgment by confession against you. In the event the Bank exercises any of its remedies, legal fees and costs will be incurred for which you will be liable under the terms of the loan documents. The Bank reserves the right to accept partial payment, payment on account or payment of some or all of the interest due following the date of this Notice. However, no payment accepted by the Bank shall constitute a waiver of this declaration of default, acceleration and demand for payment in full unless expressly agreed by the Bank in writing. A copy of this Notice is being provided to Donald B. and Constance A. Hearn, since both of you are jointly and severally liable for the debt under the terms of the note and loan documents. cc: G. Balchunas, Esquire Very truly yours, MANUFACTURERS AND TRADERS TRUST COMPANY Vice President Via Regular and Certified Mail, Return Receipt Requested Barry W. Sawtelle, Esquire Attorney ID15 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC., Defendant · IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA : CIVIL ACTION - LAW : · NO. 03-1943 Civil Term : · ASSIGNED TO: .. CERTIFICATE OF SERVICE I, Barry W. Sawtelle, Esquire, attorney for Plaintiff Merchants and Traders Trust Company, certify that on May 14, 2003, a copy of the Notice Under Rule 2958.1 of Judgment and Execution Thereon in the form attached was served upon the following parties by first class mail, postage prepaid: CJH Leasing, Inc. 9 Brenneman Circle Mechanicsburg, PA 17055 Donald B. Hearn Constance B. Hearn 893 Hawthorn Avenue Mecnahicsburg, PA 17055 This Certificate is made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. Dated: May 14, 2003 KOZLOFF STOUDT Professional Corporation Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC., DONALD B. HEARN and CONSTANCE A. HEARN, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW NO. 03-1943 Civil Term ASSIGNED TO: NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANT'S RIGHTS TO: CJH LEASING, INC. DONALD B. HEARN, and CONSTANCE A. HEARN, A judgment in the amount of $266,880.18 has been entered against you and in favor of the Plaintiff without any prior notice or-hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT · AND PRESENT IT TO A JUDGE WITHING THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE 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 Date: May 14, 2003 KOZLOFF STOUDT Professional Corporation is67 w O iv Wyomissing, PA 19610 (610) 670-2552 Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Attorneys For: Plaintiff : MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC., DONALD B. HEARN and CONSTANCE A. HEARN, Defendants : IN THE COURT OF COMMON PLEAS OF CUMBERLAND, PENNSYLVANIA CIVIL ACTION - LAW : NO. 03-1943 Civil Term : ASSIGNED TO: PRAECIPE TO THE PROTHONOTARY: Kindly mark the judgment entered in the above-captioned action "SATISFIED AND PAID IN FULL", upon payment of your costs only. Date: July 1/~, 2003 KOZLOFF STOUDT Professional Corporation 2AB~~wtell~, Esquire 42936 Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 Barry W. Sawtelle, Esquire Attorney ID# 42936 Kozloff Stoudt 2640 Westview Drive P.O. Box 6286 Wyomissing, PA 19610 (610) 670-2552 : Attorneys For: Plaintiff MANUFACTURERS AND TRADERS TRUST COMPANY, SUCCESSOR TO FINANCIAL TRUST COMPANY, Plaintiff VS. CJH LEASING, INC., Defendant : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND, PENNSYLVANIA : : CIVIL ACTION - LAW : : NO. 03-1943 Civil Term : : ASSIGNED TO: CERTIFICATE OF SERVICE Dated: July I/~, 2003 I, Barry W. Sawtelle, Esquire, attprney for Plaintiff Manufacturers and Traders Trust Company, certify that on July /fi, 2003, a copy of the Praecipe in the form attached was served upon the following parties by first class mail, postage prepaid: CJH Leasing, Inc. 9 Brenneman Circle Mechanicsburg, PA 17055 This Certificate is made subject to the penalties of 18 Pa. C.S. Section 4904 relating to unsworn falsification to authorities. KOZLOFF STOUDT Professional Corporation '~y W~e, Esquire .~ffeys for Plaintiffs