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HomeMy WebLinkAbout07-2008LAMM RUBENSTONE LESAVOY BUTZ & DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire Attorney I.D. Nos. 66096 & 80988 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330; 215-638-2867 Attorneys far Plaintiff GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA v. THOMAS R. CARBONARO CIVIL ACTION Defendant. NOTICE TO DEFEND "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 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 THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. No. (07 350978-1 IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE." LAWYER REFERENCE SERVICE CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARISLE, PA 17013 (717) 249-3166 AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los proximos veinte (20) dias despues de la notificacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABODAGO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. LAWYER REFERENCE SERVICE CUMBERLAND COUNTY BAR ASSOCIAITON 32 SOUTH BEDFORD STREET CARISLE, PA 17013 (717) 249-3166 350978-1 LAMM RUBENSTONE LESAVOY BUTZ & DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire Attorney I.D. Nos. 66096 & 80988 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330; 215-638-2867 Attorneys for Plaintiff GE CAPITAL SMALL BUSINESS FINANCE CORPORATION 635 Maryville Centre Drive, #120 St. Louis, Missouri 63141 Plaintiff, : V. THOMAS R. CARBONARO 316 East Meadow Drive Mechanicsburg, Pennsylvania 17055 Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 0.7 - .U0 cEZkyl 0t u• ? CIVIL ACTION COMPLAINT GE Capital Small Business Finance Corporation, ("Plaintiff'), by and through its undersigned counsel, Lamm Rubenstone Lesavoy Butz & David LLC, brings this action against the above named Defendant, Thomas R. Carbonaro, and in support thereof respectfully avers as follows: 1. Plaintiff, GE Capital Small Business Finance Corporation, is a national financial institution with a place of business located at 635 Maryville Centre Drive, #120, St. Louis, Missouri 63141. 350978-1 a 2. Thomas R. Carbonaro ("Defendant"), upon information and belief, is an adult individual and president of Pennsylvania Delivery Systems, Inc. ("Penn Delivery"), and has a last known address to Plaintiff of 316 East Meadow Drive, Mechanicsburg, Pennsylvania 17055. 3. On or about December 28, 2000, Penn Delivery made, executed and delivered to Plaintiff, among other loan documents, a U.S. Small Business Administration Note ("Note") evidencing a certain loan in the principal amount of $586,000.00 made to Penn Delivery from Plaintiff ("Loan"). A true and correct copy of the Note is attached hereto, incorporated herein and marked as Exhibit "A." 4. In order to induce Plaintiff to enter into the Note, on or about December 28, 2000, Defendant executed a U.S. Small Business Administration Unconditional Guarantee ("Guarantee") in which he unconditionally personally guarantees payment to Lender of all amounts owing under the Note. A true and correct copy of the Guarantee is attached hereto, incorporated herein and marked as Exhibit "B." 5. The Note provides, inter alia, that Penn Delivery repay the Loan in one (1) interest installment, commencing on January 15, 2001, followed by monthly installments of principal and interest, each in the amount of $12,888.00 commencing on February 15, 2001 and continuing thereafter for sixty (60) months, when the full balance of unpaid principal and interest, and all other amounts due under the Note shall become due and payable. 6. On or about September 20, 2004, Penn Delivery made, executed and delivered to Plaintiff a First Loan Modification Agreement ("Modification") wherein the August 2004 monthly installment payment of principal and interest was deferred, reducing the monthly installment payment of principal and interest for a period of four (4) months, (September, October, November and December 2004), and that beginning January 15, 2005, the monthly 350978-1 installment payment of principal and interest was to resume in the amount of $15,478.00, with the full outstanding balance to be paid on January 15, 2006 (the "Maturity Date'). A true and correct copy of the Modification is attached hereto, incorporated herein and marked as Exhibit «C 7. On December 30, 2004, Penn Delivery filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code, (the "Code") and pursuant to U.S.C. §362 of the Code, an Automatic Stay came into effect. 8. Prior to filing bankruptcy, Penn Delivery made its last payment on the Note on December 15, 2004. 9. On March 16, 2005, the Chapter 11 petition was converted to Chapter 7 under the Code. 10. During the bankruptcy proceeding, the Trustee sold Penn Delivery's assets and remitted payment to Plaintiff in the total amount of $115,926.13, (the "Credit"). 11. After application of the Credit, Defendant is obligated and liable to Plaintiff under the Note, Modification and Guarantee, as follows, plus accruing interest: Principal $79,213.96 Interest to 03/30/2007 $21,356.62 Late Charges $19,493.19 Appraisal $3,275.00 UCC Search $93.25 Legal $17,879.69 Total Amount Due $141,311.71 Per Diem $14.85 12. The Note and Guarantee permit Plaintiff to collect attorneys' fees and costs to collect amounts due under the Note. 350978-1 13. Plaintiff has incurred reasonable attorneys' fees and costs in the amount of $17,879.69, which continues to accrue. 14. Defendant is in default of his obligations to Plaintiff under the Note, Modification and Guarantee by reason of, inter alia, his failure to make the required payments when due. 15. As a result of the foregoing defaults, all amounts owing under the Note, Modification and Guarantee are due and owing in full. 16. The Note and Guarantee contain waivers of demand. 17. Defendant has failed and refused to pay the balance due on the Note, Modification and Guarantee, or any portion thereof. WHEREFORE, Plaintiff, GE Capital Small Business Finance Corporation, respectfully requests entry of judgment against Defendant, Thomas R. Carbonaro, in the amount of $141,311.71 through March 30, 2007, together with (a) interest at the per diem rate of $14.85 from and including March 31, 2007, (b) continued attorneys' fees and costs, and (c) such other and further relief as this Court may deem just and proper. Respectfully submitted, LAMM RUBENSTONE LESAVOY BU DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire 3600 Horizon Boulevard, Suite 200 Trevose, PA 19053 Phone: (215) 638-9330; Fax: (215) 638-2867 Attorney for Plaintiff, GE Capital Small Business Finance Corporation 350978-1 VERIFICATION Mark Farr, an Authorized employee of GE Capital Small Business Finance Corporation, being duly sworn according to law, deposes and says that he is a representative of Plaintiff, and authorized to make this Verification on behalf of Plaintiff; that the facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information and belief; and that the foregoing statements are made subject to the penalties of 18 Pa.C.S.A. §4904 related to unsworn falsifications to authorities. GE CAPITAL SMALL BUSINESS FINANCE CORPO TION By:? G2 Mark Farr, Liquidation Specialist 350978-1 ?x?j?,?- ge 1 of 4) OS.yU66 atparms rrWtetr + _ . U.S. Small Business Administration • NOTE SBA Loan A 1 PLP 413-492-004 SBA Loan Name 1 Pennsytvanta De lmy Systems, Inc. Date December 28. MW Loan Amount $ 586,00(100 Interest Rate Vartabfe Borrower Permsytvanta Deavery systmn Inc, Operating company Lender GE Capital Sma9 Business FYrarrce Corporatbn f. PROMISE TO PAY: i In return for the Loan, Borrower promises to pay to the order of Lender the amount of Five Hundred Eighty Six Thou"nd a OW100 Dollars, interest on the unpaid principal balance, and all other amounts required by this Note, 2. DEFINITIONS: 'COIaterai' means any property taken as security for payment of this Note or any guarantee of this Note. 'Guarantor- means each person or entity that signs a guarantee of payment of this Note. "Loan' means the loan evidenced by this Note. 'Loan Documents' means the documents related to this loan skIned by Borrower, any Guarantor, or anyone who pledges collateral. 'SBA' means the Small business Administration. an Agency of the United States of America. i 3. PAYMENT TERMS- Borrower must make all payments at the place Lender des hates. The payment terms for this Note are: One b4o"t Ins1a4n",4 M6111e monthly, cornrrrencing on January 1S, 2001 followed by krstatW-I-. tnehrding prtrrdpai arW fit. each In the amount of S12,a MOO *Ommdncing on Febrwry 15. 2001 and t ontinuing due and payable monthly IW Sixty when the fall unpaid baiarr¢e of Vlr c pad and interest shat WCO (6% months. first to Interest to the date rrnO due and payable Funds reoeivod from the borrower will be topped of reodpt, then to principaf. that to the We fee- t The total fixed payrrrent Is 1- be adjusted -mdlrp y to c. d*cl rate changes Borrower agrees to pay a rate charge egwi to 5% of the Payment amount due p such payinpd b not received within ten days of the due date, but not so ended maximum charges under then appocabte taw. allowable SBA Fpm 147 f10r22/9M Previous editions obsonete c' 12-28-2000 PROMISSORY NOTE Loan No 4134924004 (Contku,ed) Page 2 This Is a variable Interest rase note, with an Initial interest rate of ii.SO',t. Interest shall accrue on ire principal balance of the Note at a fluctuation rate based on the 'Drina Rate" plus 200 IIL The 'Prune Rate shelf be deAned as the lowest prime wag rase as published In the Wall Street JotrnaL The initial Interest rate is based on #0 'Prime Rate of 9_W%, the 'Prime Rate' In ailed on the date SBA received the loan applicatlom The rate shelf Increase or decrease monthly on me first day of each month during the term of Ube NOW The amoeant that the Interest on oft note may vary is llrnited by a ceiling and floor: (1) The maxlrman k terest rote (celfty) Will not exceed 3% above the In11W Interest rate. (2) The m! dnarrr Interest rate (Hoer) will not he less Ilan 3% below the initial Interest rata Holder shall give written notice to the undersigned of each Nxxesse or doere ese in the imw=t rate within thirty (30) days after the effective date of each rate adjustment; however. the fluckodon of the interest rate Is not contingent on whether the notice is given. Notwithstanding the hbreping provision for efnanges in the rats of Interest, at no thine shall the Interest rare exceed the nmbrw m rate Permitted by applicable law. Upon any changes In the hdored rate, the above morMy, principal and Interest payments shelf be atiju 1 d se WMttze the remaining ban balance In equal Wmadhy payments of principal std Interem over the rrxn*Ang term of the loan. Interest on this nose Is computed on a 3WJW simple interest basis; that is. with the ateepvon of odd days in the first payment period, monthly Interest Is calculated by applying the ratio of the annual Interest rate over a year of 360 days, multiplied by the Outstanding Principal Aatatkxk muUlpiled by a month of 30 days. Interest for the odd days is calculated on the bash of the actual days to the next full month and a 360-day year- If S.BA purchases the guaranteed portion of the unpaid principal batarboa, the Interest rate beeornes fixed at the time of the earUest rrbccred p "xnt default. It there h no uncured payment default, the rate becomes fixed at the rate in effect at the time of purchase. EACH OF THE UNDERSIGNED HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF. DIRECTLY OR INDIRECTLY. THIS NOTE, ANY OF THE RELATED DOCUMENTS. ANY DEALWAS AND/OR THE RELATIONSHIP THAT IS OEM ESTABLISHED HEREBY. THE SCOPE OF THIS WAVER Is INTENDED TO BE All ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT INCL UDfii6, WITHOUT UMiTATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS. AND ALL OTHER COMMON LAW AND/OR STATUTORY CLAIMS. THIS WAIVER IS IRREVOCABL.E MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. AND SHALL APPLY TO ANY SUBSEDUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION- IN THE EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WAITTEN CONSENT TO A TRIAL BY THE COURT_ 4. RIGHT TO PREPAY: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal balance at any titne without notice. If Borrower prepays more than 20 percent and the loan has been sold on the secondary market, Borrower must: A. Give Lender written notice; B. Pay aH accrued interest: and C. It the prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days' interest from the date Lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph B. If Borrower does not prepay within 60 clays from the date Lender receives the notice, Borrower must give Lender a new notice. 5. DEFAULT: Borrower is in defauk under this Note 4 Borrower does not make a payment when due under this Note. or it Borrower or Operating Company- A. Farts to do anything required by this Ante and other Loan Documents; N in 7 afir.. ge 3 of 4) `• '2?'?? PROMISSORY NOTE Loan No 4134924004 Page 3 p ?- (Continued) B. Defaults on any other loan with Lender, C. Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its proceeds; D. Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA; E. Makes, or anyone acting on their behalf makes. a materially false or F. Defaults on any loan or misleading represerutatlon to Lender or SBA; agreement with another creditor, lf Lender believes the defauk may materially affect Borrower's ability to pay this Note; G. Fails to pay any taxes when due; H. Becomes the subject of a proceeding under any bankruptcy or insolvency law; 1.' Has a receiver or liquidator appointed for any pad ol'their business or property; J. Makes an assignment for the benefit of creditors; K Has' any adverse change in financial condition or- business operation that Lender believes may materially affect ! Borrower'3'abu7ity to pay this flote; L Reorganizes, merges. 60nso8dates, or otherwise changes ownership or business structure without Lender's prior written consent; or M. Becomes the subject of a CNII or criminal action that Lender berr m may materially affect Borrowers ability to pay this Note. S. LENDER'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without g" up any of its rights, Lender may. A. Acquire immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor, C. File suit and obtain judgement; D. Take possession of any Collateral, or E. Sell, lease, or otherwise dispose of. any Collateral at public or private sale, with or without advertisement. 7. LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A. Bid on or buy the Collateral at its sate or the sate of another 6enholder, at any price it chooses; B- Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for taxes. prior liens. insurance. pf osts. appraisals, environmental remedation costs, and reasonable attorney's fees and costs. If Lender incurs such expenses. it may demand Immediate repayment from Borrower or add the expenses to the principal balance; C. Release anyone obligated to pay this Note; D. Compromise, release, renew, extend or substitute any of the Collateral, and E. Take any action necessary to protect the Collateral or collw amounts owing on this Note. 8. WHEN FEDERAL LAW APPLIES: When SBA Is the holder. this Note will be Interpreted and enforced under federal law, including SBA regulations. Lander or SBA may use state or local procedures for filing papers, recording documents. giving notica, loredosing riens, and other purposes. By using such Procedures. SBA does not waive any federal immunity from state or local control, penalty, tax, or GablIlty. As to this Note, Borrower may not claim or assed against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law. 9. SUCCESSORS AND ASSIGNS- Under this Note, Borrower and Operating Company Include the successors of each, and Lender includes its successors and assigns. 10. GENERAL PROVISIONS: 12-28-2000 PROMISSORY NOTE Loan No 4134924004 (Continued) Page 4 A. AN individuals and entities signing this Note are jointly and severally cable. 13. Borrower waives all suretyship defenses. C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lende?s ions on Colllatemi. D. Lender may exercise any of Its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E Borrower may not use an oral statement of Lander or SBA to contradict or after the written tents of this Note. F. It any part of this Note is unenforceable. all other parts remain in effect. G. To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, hViuding presentment. that Lander not d errand, protest. and notice of dstnonot. Borrower also waives any defenses based upon any claim obtain any quammee; did not obtain, perfect, or maintain a rnen upon Collateral; Impaired Coilaterat or did not obtain the fair market value of Collateral at a sale. 'I - STATE-SPECIFIC PROVISIONS: CONFESSION OF JUDGEMENT CLAUSE. to the event the herein descrWed property. or any part thereof, or any Interest therein 13 sold, agreed to be sold, conveyed, transferred. disposed of, further encumbered, or alienated Mort the operation of law or otherwise without written consent of Mo by 9a9a or rigagee first obtained, all obligaff" secured by this is instrument. Irrespective of the fnaturity dates expressed herein, at the option of the holier Mortgagee. and without demand or notice shall immedlWey become due or payable. Consent to one such transaction shall not be deemed to be a waiver of the right to require such consent to future or successive transactions. The undersigned hereby authorizes and empowers any attorney or dark Of any Court of record in the. United States or elsewhere to appear for and, with or without declaration riled, confess judgment against the Undersigned in favor of the holder a or lime, for the lull or rotal amount as into Kota successor of holler of the Note, at any . together with all indebtedness provided for therein,. with costs of suit and attorneys commission of ten (10) percent for c0kc" n; and the Undersfgrned expressly releases all effors. waives all stay of execution, rights of inqufs*n and anettsion upon any levy upon real estate and all exemption sate upon execution hereon; and the Unde of property from levy s t reigned expressly agrees to condemnation and expressty relinquishes all tights to o benefits or exemptions under any WW all exemption taws now in force or which may hereafter be enacted- 12. BORROWERS NAME(S) AND SIGNATURE(S): OY signing below, each i KWWual or entity becomes obligated under this Note as Borrower. =BORROWE Sys m. By ..._. : .. - - Ttwntas R. Carboearo, President The guaranteed portion of this Note ban been tmnaferred to a Rogistered Holder for value. Dnte 7 A)i Fdr. 147 (1021?08) W eV- js eels By: (L) . Attest: Thotnaa R. Carbonaro, Secretary Amu S OUSlt?i'S Ft MANI:f COaPeilATxlp r 4 tti p t' we, to MILL emu= AWIa0.4TSA710N - U.S. Small Business Administration • I UNCONDITIONAL GUARANTEE SBA Loan # PLP4f3.482-4004 SBA Loan Name Pennsylvania Deilvery Systems, Inc. Guarantor Thomas R. Carbonaro Borrower Pennsylvania Del hrerY Systems, Inc. Lender GE Capital Small Business Rnance Corporation Date December 211, 2000 Note Amount $5W,00000 1. GUARANTEE: Guarantor unconditionally guarantees payment to lender of all amounts owing under the Note. This Guarantee remains in effect unto the Note is paid in full. Guarantor must pay ail amounts due under the Note when Lender makes written demand upon Guarantor. Lender is not required to seek payment from any other source before demanding payment from Guarantor. 2. NOTE: The 'Note' is the promissory note dated December 26, 2OW in the principal amount of Five Hundred Eighty Six Thousand b 00!100 Dollars, from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Note, and multiple notes under a One of credit. 3. DEFINITIONS: 'Collateral' means any property taken as security for payment of the Note or for any guarantee of the Note. 'Loan' means the loan evidenced by the Note. 'Loan Documents' means the documents related to the Loan signed by Borrower, Guarantor or any other guarantor, or anyone who pledges Collateral. 'SBA' means the Small Business Administration, an Agency of the United States of America. 4. LENDER'S GENERAL POWERS: Lender may take any of the following actions at any time, without notice, without Guarantor's consent, and without making demand upon Guarantor: A. Modify the terms of the Note or any other Loan Document except to increase the amounts due under the Note; a. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; SBA Forth 148 (10M) Previous edMons obsolete • 12-28-20oo SBA GUARANTY Loan No 4134924004 Page 2 (Continued) D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain. and d' advertisement; ?spose of, any Collateral at public or private sale, with or without G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; and H. Exercise any rights it has, Including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender. 5. FEDERAL LAW: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, Including S regulations. Lender or SBA may use state or local procedures for filing papers, recording documents. BA foreclosing liens, and other purposes. By using such procedures. SBA does not waive giving notice, i local control, penalty, tax, or liability. As to this Guarantee, Guarantor any federal immunity from state or may not claim or assert any local or state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to: 1) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of CoGatwW advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it B. Guarantor waives any notice of. 1) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements Intent to accelerate, assignment, collection act payment, nonpayment ivity acceleration, enforcement 5) Any change in the financial condition or business , and incurring Borrower or a expenses; operations of 6) Any changes In the terms of the Note or other Loan Documents exceptoincre ny guarantor Note; and ase in the.amounts due under the 7) The time or place of any safe or other disposition of Collateral. 0. Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee; 2) Lender faced to obtain, perfect, or maintain a security interest in 3) Lender or others improperly vakied or Inspected the Collateral;Y property offered or taken as Collateral; 4) The Collateral changed in value, or was neglected, knit, destroyed, or underinsured; 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any 10) The financial condition of Borrower or any guarantor was overstated or has adversely hanged; of the Note; 11) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before demanding payment from Guarantor; 13) Lender impaired Guarantor's suretyship rights, 14) Lender modified the Note terms, other than to Increase amounts due under the Note. If Lender modifies the Note to increase the amounts due under the Note without Guarantor's the increased amounts and related interest and a consent, Guarantor will not be liable for 15) Borrower has avoided fiability on the Note; or s' but remains liable for all other amounts; 1248-2000 SBA GUARANTY ?r Loan No 4134924004 • Page 3 (Continued) 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL- Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral. S. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and assigns. g. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this Guarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A 00-GUARANTOR. Guarantor's liability will continue even If SBA pays Lender. SBA is not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note of the Collateral until the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. AM Individuals and entities signing as Guarantor are Jointly and severally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without losing or impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee. 1. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain In effect. J. CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by Lender as to the Loan. 10. STATE-SPECIFIC PROVISIONS: WAIVER OF JURY TRIAL' EACH OF THE UNDERSIGNED HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS GUARANTY, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED HEREBY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND/OR STATUTORY CLAIMS. THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY, ANY RELATED DOCUMENTS OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. IN THE EVENT OF LITIGATION, THIS GUARANTY MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. CONFESSION OF JUDGEMENT CLAUSE. In the event the herein described property, or any part thereof, or arty interest therein is sold, agreed to be sold, conveyed, transferred, disposed of, further encumbered, or alienated b Mortgagor or by the operation of law or otherwise without written consent of mortgagee first obtained, all obligations secured by this instrument, irrespective of the maturity dates expressed hereto, at the option of the holder Mortgagee, and without demand or notice shall Immediately become due or payable. Consent to one such transaction shall not be deemed to be a waiver of the right to require such consent to future or successive transactions. The undersigned hereby. authorizes and empowers any attorney or cleric of any Court of record in the United States or elsewhere to appear for and, with or without declaration tiled, confess judgment against the Undersigned in favor of the holder, assignee or successor of holder of the Note, at any lime, for the full or total amount of this Note, together with all indebtedness provided for therein„ with costs of suit and 12-28-2000 SBA GUARANTY Loan No 4134924004 Page 4 (Continued) attorney's commission of ten (10) percent for collection: and of execution, rights of Inquisition and extension ? Undersigned expressly releases. all errors, waives all stay upon any levy upon real estate arid all exemption of property from levy and sale upon execution hereon; and the undersigned expressly agrees to condemnation and expressly relinquishes from all rights to benefits or exemptions under any and all exemption laws now in force or which. may hereafter be enacted.. 11. GUARANTOR ACKNOWLEDGEMENT OF TERMS: i Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and INS Guarantee, Including all waivers. i 12. GUARANTOR NAME(S) AND SIGNATURE(S): By signing bebw, each individual or entity becomes obligated as Guarantor under this Guarantee. QUA i x EAL) l Thanes R. Carbortaro . $B:;p Fann 148 (IM)a) PM1iM. editions Sete r? ?x?y?; ? ? -0 FIRST LOAN MODIFICATION AGREEMENT STATE OF MISSOURI COUNTY OF ST. LOUIS GE# 6302334 SBA Loan # PLP 413 492 4004 THIS AGREEMENT between PENNSYLVANIA DEUVERY SYSTEMS, INC. ("Borrower") and GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, ("Lender" WITNESSETH, that }? WHEREAS, Lender is the holder and payee of a Note dated December 28, 2000, by Pennsylvania Delivery Systems, Inc., in the principal amount of $586,000.00; WHEREAS, The principal balance as of September 17, 2004, on said Note is $195,496.75 and the accrued interest as of September 17, 2004 is $ 2,126.02; WHEREAS, Borrower has requested that Lender modify certain provisions and conditions pertaining to the aforesaid Note; NOW, THEREFORE, in consideration of good and valuable consideration, Borrower agrees with Lender, notwithstanding anything in the Note to the contrary, to modify the Note as follows: The Note is hereby amended so that monthly principal and interest Installment due for the month of August 2004 has been deferred. The Note Is further amended so that monthl Payment y principal and Interest installment payments due for the months of September, October, November and December 2004 will be fixed at $1,200.00. Interest has continued and will continue to accrue during the deferment period. Beginning January 15, 2005, monthly installment payments for principal and Interest will resume in the initial amount of $15,478.00, based on current rate and maturity. All payments shall be applied first to accrued interest to date of payment, then to principal then, if any, to any other accrued fees. Borrower shall then pay the final payment due on the maturity date of January 15, 2006, which shall include all remaining outstandin principal, interest and fees. g Should the installments set out above be Insufficient to amortize the Note b the maturity date of January 15, 2006, or be more than is necessary to amortize it as of that date, the installment shall be adjusted in order that the loan be amortized over the original term of the Note, Including all outstanding principal, interest and fees. All of the other terms and conditions of the Note shall remain unchanged. Borrower hereby authorizes and directs Lender to take any action necessary to conform the original Note, security instruments and other collateral documents to the terms as herein modified, and by these presents accept and confirm their liability under said Note, securi instruments and other collateral documents, with the terms as herein modified. tY Loan # 6302334 Page 1 of 3 This agreement is subject to Lender's approval. Failure on the part of the debtor to comply these terms will render this modification null and void and, in the event that this mod Pica on'is voided, the date of default shall revert to the date of default set prior to the execution of this modification. IN WITNESS WHEREOF, the parties have executed this instrument this _Zo Wit-,, day of September, 2004. BORROWER: Pennsylvania Delivery Systems, Inc. By: Thomas R. Carbonaro, President Attest: (print name) GUARANTOR: Thomas R. Carbonaro, individually Attest: '(print nam Loan #6302334 Page 2 of 3 i LENDER: GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, a Delaware corporation By: 6SeniJen er ou ng S Nicing A inistrator Attest: (print Loan # 6302334 Page 3 of 3 `` V P F a (71 r a C j T ,J ??z f David J. Lanza I.D. No. 55782 356 North 2Is' Street Camp Hill, Pennsylvania 17011 (717) 730-3775 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, Plaintiff V. THOMAS R. CARBONARO, Defendant Attorney for Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 07-2008 CIVIL ACTION - LAW DEFENDANTS' ANSWER TO COMPLAINT 1. Denied. This averment is beyond the knowledge of Defendant and is therefore dened. By way of further denial, Plaintiff fails to define "national financial institution." 2. Admitted. 3. Admitted. 4. Admitted in Part. Denied in Part. This averment constitutes a legal conclusion that requires no responsive pleading. 5. Admitted in Part. Denied in Part. The document speaks for itself. 6. Admitted in Part. Denied in Part. The document speaks for itself. 7. Admitted. 8. Denied. It is denied that PDS' last payment was made prior to the bankruptcy. 9. Admitted in Part. Denied in Part. The petition was converted by Order of Court over the objection of Defendant and Debtor. 10. Admitted in Part. Denied in Part. The exact amount of the credit is hereby denied. Strict proof is hereby demanded. By way of further denial, the bankruptcy proceeding has yet to be resolved and certain proceeds have yet to be distributed. By way of further denial, it is denied that Plaintiff obtained full value for the assets of PDS that were sold. 11. Denied. Plaintiff has received total payments in excess of the original principal balance. By way of further denial, the interest and late charges may have accrued improperly during the pendency of the bankruptcy. Plaintiff has no basis to charge the aforesaid legal fees. 12. Denied. The document speaks for itself. The aforesaid averment constitutes a legal conclusion. 13. Denied. It is denied that Plaintiff has incurred actual charges in the aforesaid amount. 14. Denied. Defendant has made reasonable inquiry regarding the balance due, if any, and has failed to receive satisfactory answers or documentation from the Plaintiff. Plaintiff has improperly added charges while Defendant awaited answers to his inquiries regarding the balance due, which charges might have been unnecessary had Plaintiff responded to Defendant's inquiries in a timely fashion. 15. Denied. The aforesaid averment constitutes a legal conclusion. It is denied that Defendant is in default. 16. Denied. The document speaks for itself. The aforesaid averment constitutes a legal conclusion. It is denied that any such waiver is legally effective. 17. Denied. Defendant has made reasonable inquiry regarding the balance due, if any, and has failed to receive satisfactory answers or documentation from the Plaintiff. It is denied that any amounts are due and owing at this time. Wherefore, Defendant respectfully requests that Plaintiff's Complaint be dismissed and that judgment be entered in favor of Plaintiff. Respectfully W?mitted, David J. Lanza Attorney I.D. No. 55782 356 North 21St Street Camp Hill, PA 17011 Attorney for Defendant 110-7 VERIFICATION I, Thomas Carbonaro, verify that the statements made in this Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are made subject to the penalties of 18 Pa. C.S.A §4904, relating to unsworn falsification to authorities. Date: By: Thomas Carbonaro CERTIFICATE OF SERVICE AND NOW, this 25th day of May, 2007, the undersigned does hereby certify that she did this date serve a copy of the foregoing document upon the other parties of record by causing same to be deposited in the United States Mail, first class postage prepaid, at Camp Hill, Pennsylvania, addressed as follows: Sherry Lowe, Esquire 3600 Horizon Boulevard Suite 200 Trevose, PA 19053 r By: David Lanza 110-7 t-: *?? ?? - ---? . . ? -_- -?, _ ?- ?; ;?,? c: ? _- ;?.. ?, ?.3 - ,--, .', ', --? SHERIFF'S RETURN - REGULAR CASE NO: 2007-02008 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND GE CAPITAL SMALL BUSINESS FINA VS CARBONARO THOMAS R KENNETH GOSSERT , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon CARBONARO THOMAS R the DEFENDANT , at 1816:00 HOURS, on the 23rd day of April , 2007 at 316 EAST MEADOW DRIVE MECHANICSBURG, PA 17055 KATHY CARBONARO, WIFE by handing to a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge gZ3'0? 9,.,, So Answers: 18.00 11.52 .00 10.00 R. Thomas Kline .00 ?- 39.52 04/24/2007 LAMM RUBENSTONE LESAVOY Sworn and Subscibed to before me this day of , By. y e f A. D. LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. THOMAS R. CARBONARO Defendant. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 CIVIL ACTION PRAECIPE FOR ARGUMENT TO THE PROTHONOTARY: Kindly place the following matter on the next available Argument List after August 24, 2008: Plaintiffs Motion for Summary Judgment. LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. #65627 Attorneys for Plaintiff 384164-1 71 : ?-- --I . r r- j71 co Fri LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. THOMAS R. CARBONARO Defendant. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 CIVIL ACTION PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT AGAINST DEFENDANT NOW COMES Plaintiff, by and through its undersigned counsel, and files the following Motion for Summary Judgment against Defendant in this matter: 1. On April 11, 2007, Plaintiff filed its breach of contract Complaint in this matter. A copy of the Complaint is attached hereto as Exhibit "A", and the provisions thereof are hereby incorporated by reference as though fully set forth. 2. On May 25, 2007, Defendant filed his Answer to Plaintiff s Complaint. A. copy of Defendant's Answer is attached hereto as Exhibit "B", and the provisions of same are incorporated by reference as though fully set forth. 3. Defendant's Answer contains no New Matter. 383148-1 ?, r- i 4. On April 7, 2008, Plaintiff propounded Requests for Admission upon Defendant. See Exhibit "C" attached hereto, the provisions of which are hereby incorporated by reference as though fully set forth. 5. On May 6, 2008, Defendant provided his Answer to Plaintiff's Requests for Admission. See Exhibit "D" attached hereto, the provisions of which are hereby incorporated by reference as though fully set forth. 6. Pursuant to Defendant's Answer to Plaintiff's Requests for Admission, the following are now admitted by Defendant in this matter, and therefore are conclusively established in this matter under Pa.R.C.P. 4014(d): (a) The authenticity and genuineness of the Note embodying the subject loan obligation. (b) The Note was signed by the Borrower thereunder, Pennsylvania Delivery Systems, 'Inc. (c) The authenticity and genuineness of the Guarantee guaranteeing the subject loan. (d) Defendant signed the Guarantee. (e) The authenticity and genuineness of the First Loan Modification Agreement which modified the subject loan. (f) Both Pennsylvania Delivery Systems, Inc. and Defendant signed the First Loan Modification Agreement. 7. As a result of the foregoing, it is uncontroverted that Defendant is bound by the Guarantee, which provides that Defendant unconditionally guarantees payment of 383148-1 all indebtedness due and owing under the subject loan, which in turn is memorialized by the Note and First Loan Modification Agreement. 8. Further, attached hereto as Exhibit "B" is Plaintiffs Affidavit, which establishes the truth of the matters set forth in Plaintiffs Complaint. Plaintiff has actual knowledge of the foregoing, and its Affidavit is evidence of same set forth under oath. 9. The only "defense" proffered by Defendant in this matter, that can be gleaned from Defendant's Answer to Plaintiffs Complaint, seems to be that Defendant generally takes issue with the amount set forth as due and owing by/from Defendant. Notwithstanding the fact that this contention has no merit, section 6 (C)(11) of the Guarantee clearly states that Defendant "waives defenses based on any claim that ... [the] Lender made errors or omissions in ... administration of the Loan..." 10. The pleadings in this matter are now closed. 11. There is no genuine issue of any material fact, and therefore summary judgment is appropriate in favor of Plaintiff and against Defendant as a matter of law. WHEREFORE, Plaintiff respectfully requests this Honorable Court to enter an Order granting summary judgment in favor of Plaintiff and against Defendant in this matter, in the form of the proposed Order attached hereto. Date: LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney for Plaintiff 383148-1 , Or VERIFICATION I, Attilio R. Sassi, verify that I am authorized to and do make this verification on behalf of Plaintiff in this matter, and that the statements made in the foregoing Plaintiff s Motion for Summary Judgment against Defendant are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are made subject to the penalties of 18 Pa. C.S.A. §4904 relating to unsworn falsifications to authorities. r Attilio R. Sassi 383148-1 JUL 2 2 2008 r ???y{ {? ,a T Fri _ J ff- LAMM RUBENSTONE LESAVOY BUTZ & DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire Attorney I.D. Nos. 66096 & 80988 . 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330; 215-638-2867 Attorneys for Plaintiff GE CAPITAL SMALL BUSINESS FINANCE CORPORATION COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA Plaintiff, v. No. THOMAS R. CARBONARO CIVIL ACTION Defendant. NOTICE TO DEFEND "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 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 THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. 350978-1 IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE." LAWYER REFERENCE SERVICE CUMBERLAND COUNTY BAR ASSOCIATION 32 SOUTH BEDFORD STREET CARISLE, PA 17013 (717) 249-3166 AVISO USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los proximos veinte (20) dias despues de la notificacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABODAGO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. LAWYER REFERENCE SERVICE CUMBERLAND COUNTY BAR ASSOCIAITON 32 SOUTH BEDFORD STREET CARISLE, PA 17013 (717) 249-3166 350978-1 LAMM RUBENSTONE LESAVOY BUTZ & DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire Attorney I.D. Nos. 66096 & 80988 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330; 215-638-2867 Attorneys for Plaintiff GE CAPITAL SMALL BUSINESS FINANCE CORPORATION 635 Maryville Centre Drive, #120 St. Louis, Missouri 63141 Plaintiff, V. THOMAS R. CARBONARO 316 East Meadow Drive : Mechanicsburg, Pennsylvania 17055 Defendant. COMPLAINT COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. CIVIL ACTION GE Capital Small Business Finance Corporation, ("Plaintiff'), by and through its undersigned counsel, Lamm Rubenstone Lesavoy Butz & David LLC, brings this action against the above named Defendant, Thomas R. Carbonaro, and in support thereof respectfully avers as follows: 1. Plaintiff, GE Capital Small Business Finance Corporation, is a national financial institution with a place of business located at 635 Maryville Centre Drive, #120, St. Louis, Missouri 63141. 350978-1 2. Thomas R. Carbonaro ("Defendant"), upon information and belief, is an adult individual and President of Pennsylvania Delivery Systems, Inc. ("Penn Delivery"), and has a last known address to Plaintiff of 316 East Meadow Drive, Mechanicsburg, Pennsylvania 17055. 3. On or about December 28, 2000, Penn Delivery made, executed and delivered to Plaintiff, among other loan documents, a U.S. Small Business Administration Note ("Note") evidencing a certain loan in the principal amount of $586,000.00 made to Penn Delivery from Plaintiff ("Loan"). A true and correct copy of the Note is attached hereto, incorporated herein and marked as Exhibit "A." 4. In order to induce Plaintiff to enter into the Note, on or about December 28, 2000, Defendant executed a U.S. Small Business Administration Unconditional Guarantee ("Guarantee") in which he unconditionally personally guarantees payment to Lender of all amounts owing under the Note. A true and correct copy of the Guarantee is attached hereto, incorporated herein and marked as Exhibit "B." 5. The Note provides, inter alia, that Penn Delivery repay the Loan in one (1) interest installment, commencing on January 15, 2001, followed by monthly installments of principal and interest, each in the amount of $12,888.00 commencing on February 15, 2001 and continuing thereafter for sixty (60) months, when the full balance of unpaid principal and interest, and all other amounts due under the Note shall become due and payable. 6. On or about September 20, 2004, Penn Delivery made, executed and delivered to Plaintiff a First Loan Modification Agreement ("Modification') wherein the August 2004 monthly installment payment of principal and interest was deferred, reducing the monthly installment payment of principal and interest for a period of four (4) months, (September, October, November and December 2004), and that beginning January 15, 2005, the monthly 350978-1 installment payment of principal and interest was to resume in the amount of $15,478.00, with the full outstanding balance to be paid on January 15, 2006 (the "Maturity Date"). A true and correct copy of the Modification is attached hereto, incorporated herein and marked as Exhibit 46C.11 7. On December 30, 2004, Penn Delivery filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code, (the "Code") and pursuant to U.S.C. §362 of the Code, an Automatic Stay came into effect. 8. Prior to filing bankruptcy, Penn Delivery made its last payment on the Note on December 15, 2004. 9. On March 16, 2005, the Chapter 11 petition was converted to Chapter 7 under the Code. 10. During the bankruptcy proceeding, the Trustee sold Penn Delivery's assets and remitted payment to Plaintiff in the total amount of $115,926.13, (the "Credit"). 11. After application of the Credit, Defendant is obligated and liable to Plaintiff under the Note, Modification and Guarantee, as follows, plus accruing interest: Principal $79,213.96 Interest to 03/30/2007 $21,356.62 Late Charges $19,493.19 Appraisal $3,275.00 UCC Search $93.25 Legal $17,879.69 Total Amount Due $141,311.71 Per Diem $14.85 12. The Note and Guarantee permit Plaintiff to collect attorneys' fees and costs to collect amounts due under the Note. 350978-1 13. Plaintiff has incurred reasonable attorneys' fees and costs in the amount of $17,879.69, which continues to accrue. 14. Defendant is in default of his obligations to Plaintiff under the Note, Modification and Guarantee by reason of, inter alia, his failure to make the required payments when due. 15. As a result of the foregoing defaults, all amounts owing under the Note, Modification and Guarantee are due and owing in full. 16. The Note and Guarantee contain waivers of demand. 17. Defendant has failed and refused to pay the balance due on the Note, Modification and Guarantee, or any portion thereof. WHEREFORE, Plaintiff, GE Capital Small Business Finance Corporation, respectfully requests entry of judgment against Defendant, Thomas R. Carbonaro, in the amount of $141,311.71 through March 30, 2007, together with (a) interest at the per diem rate of $14.85 from and including March 31, 2007, (b) continued attorneys' fees and costs, and (c) such other and further relief as this Court may deem just and proper. Respectfully submitted, LAMM RUBENSTONE LESAVOY B DAVID LLC By: Sherry D. Lowe, Esquire Jennifer M. Davies, Esquire 3600 Horizon Boulevard, Suite 200 Trevose, PA 19053 Phone: (215) 638-9330; Fax: (215) 638-2867 Attorney for Plaintiff, GE Capital Small Business Finance Corporation 350978-1 VERIFICATION Mark Farr, an Authorized employee of GE Capital Small Business Finance Corporation, being duly sworn according to law, deposes and says that he is a representative of Plaintiff, and authorized to make this Verification on behalf of Plaintiff; that the facts set forth in the foregoing Complaint are true and correct to the best of his knowledge, information and belief; and that the foregoing statements are made subject to the penalties of 18 Pa.C.S.A. §4904 related to unworn falsifications to authorities. GE CAPITAL SMALL BUSINESS FINANCE CORPO TION By: Mark Farr, Liquidation Specialist 350978-1 ge I d 4) 0137MI.L lRfrMeO ALrnlMaAT10M ' - U.S. Small Business Administration NOTE SBA Loan A PLP 410.492-4004 SBA Loan Name Permsyhanla Deftery Systems. Inc. Date December 20, 2000 Loan Amount S SGSA 0.00 Interest pate varlame Borrower Pamsyfvanta Delivery systpns,.b?a. Operating Company Lender GE Capital Small tau im= Fb anee Corporation t. PROMISE TO PAY: i In return for the Loan, Borrower prorhises 16'pay to the order of Lender the amoaxnt of FWD itum Bred Eighty Stx Thousurd a oamoo DoNars. interest on the unpaid. principal balance. and al other amounts required by this Note. 2. DEFINITIONS: 'Collateral' means any property.taken as sap * for payment of this We or arty guarantee of fhis Note. "Guarantor' means each person or entity that signs a guarantee of payment of this Note. 'Loan' means the loan evidenced by this Note. 'Loan Documents' means the documents related-to this ban signed by Borrower, any Guarantor: or anyone who pledges CoNalefal 'SBA' means the Small business Administration. an Agertey of the United States of Amedca- i 3. PAYMENT TERMS: F Borrowee must make aN payments at the place Lender deskjnales. The payment terms for this Note are: one 1r wt kwtalime+tL payable r w*ft, camomd" on jan!+ary. 31% 2001 :followed by k-tallnwas, bMkWkV prtneipal and k*rcA inch in aW amour N of i12AW90 eomrh er"M on Fdwuwy 15. 2001 and ewn/k UM9 due and Payable monaay for Shay (00 monMrs, . when the tO urpaW.bolanos of prkm" and l OwM *" bcvrw a WO and payable: Fu da renewed from she bonvww wW.be applied first to tMer+est be the one of reoelm nun to 1> , am to the rate tee: r The WAO Hued payment is to be ad(rrsted accordingly I o retfeet rate charmp& Borrower agrees to pay s tale darpe equal to 5% of 00 paymerd amount doe M such paVhwtt is not ?eoehed wlttNn ten days w the duo data twl not to acceed nwm1aw n charges all, W o under Sw applicable taw 1 SM Farn 147 (MOM Previots editions Obsolete ¦ 12-29,2M Loan No 4134924004 PROMISSORY NOTE (Continued) Page 2 This is a varWA Interest rate note, with an Ir" Interest rate of It-%*/. interest shall accrue on the prkrclpal balance of the Note at s 11fc4atbn rate hated on the 'Prima' Rate" plus 200 X The 'Prime Rsta^ ship be defkied a3 I ha lowest prime lahritng rare as publisited In the Wait Street Journal. The Initial Interest rate is based on to 'Prime Rate' of 95076, the 'Prime Rate" In ~,on the dare SBA received the ban appileation. The rata shall kwmm or decrease monthly on the first dap of each month during the term of rile Notes The s wort Diet the interest an this Note may vary Is limited by a cabhg and Now. (1) The awdaesm Interest rate (Cem") wlf1 not exceed 3% above doInitial Intafst rate. M The minirnum interest Tate (floor) will not be less. Man 3% below the W U Interest rite. Holeler *hall give written notice to rihe Utrdaaigned of each khcrame or decrease In the Interest rate within 11" (36)..days alter the elrecMve date of e2Ch rate adjustment: however. the flucttaiion at the interest rate Is not conlingant on whether the notice is given. NOWINIstarndWg the rwegoktg pnovisiorr for changes. In the rata of kt,.k at no rime shall the interest rate tats I on ou 601A n rate permitted by applicable taw- Upon any ed?u" In the interest rate,, the above mmnrity prI rig, and Interest payments shelf be adjastod to amortise the m mairrithg ban batanee in equal monody payments of prim lpol and interest over tuba ranakhing term of the loan. Interest on this note Is contpuded'on a 3W= cknpte interest basis. that Is. with the exception of add days in the raw payment pmiad, mwnfhly Interest Is taiculate d by applying the ratio of the annual Interest rile over a year of 360 days; rrmdtlpried by :tfw outtgarMlrig Principe! bat ook mid"plied by a rnonth of 30 days. interest for fha OW days is calculated on 11he basis of the actual pays to the next Iu P month and a 360-day yew it sim-p rchases the guraantew portion of the unpaid prbw4W balance, the interest rate becomes flied at tho tine of the -hest uncured payment default, if gum Is no uncured paymerd ddmdk the race: becornm axed at. the rate in effect at the time of purdmw EACH OF THE UNDERSIGNED HEREBY UNCONDiTH MALLY. WAIVES ITS Ri AITS TO A JURY TRIAL OF AMY CLA1Y.on CAUL OF ACTION BASED UPON OR ARISING OUT OF. DIRW LY`OR'INDIRECTLY. THIS NOTE, ANY OF THE fiELATEb OOCt"Dffg, ANY DEALINGS ANDIOR THE RELATIONSHIP THAT IS BEING ESTABLISHED IIEMMY. THE. SCOPE OF THIS WAIVER t.4 INTENDED TO OR ALL ENCOIIPASSIMG OF ANY AND, ALL DISPUTES THAT MAY BE FLED It ANY COURT AKO,UDI IG,. 'WITHOUT UWTATW% CONTRACT CtApHIS, TORT tit. BREACH OF DUTY GLAIIAS, AND ALL OTHER COMMON LAW ANOMP STATUTORY. CLAIMS. TM WAIVIM IS IRREV OCABIX MWANG THAT IT 114AY NOT BE MOOMMI) EITHER ORALLY OR IN W Rri1N% AND SHALL APPLY TO ANY SUBSEOUENT AMENDMENTS, RENEWALS .SUPPLI M MM OR MODIFICATIONS TO TtOS NOTE, ANY PA LATW 60CtiUMVII OR ANY OTHER DOCUMEM'S OR AGREFJ WM RELATM TO THUS TRANSACTION OR ANY RELATED TRANSACTION. If THI: EVENT OF LI IOATION, THIS NOTE MAY OF FILED AS A V11Af MN CONSENT TO A TRIAL BY THE COURT_ 4. RIGHT TO PREPAY: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid prkuipal balance at any time - %khout notice. if Borrower. prepays more than 20 percent. alto the Loan has been sold on The secondary market, Bomwer must: A. Give Lender written notice; 8. Pay all accrued infored: and C. If The prepayment is received less than 21 days from the date Lender teceives me notice, pay an amount.egtral'to 21 days' interest from the dato Landor receives the notice, less any interest acemed during the 21 days and paid under subparagraph B. 1t borrower does not prepay within 60.days from the date Lander receives the notice. Borrower must give Lender a new notice. 5. OEFAULT: Done~ is in ddm* under rims Nate I Borrower does not make a payment when due under Otis Note. or if Borrower or Operating Compenr- A. Fails to do anything required by We Note and other loan Documents. rr in r Mlrh. ge 3 Of a) ,t :::=28-'?d00 PROMISSORY NOTE Page 3 Loan No 4134924004 (Continued) S. Defaults on any other loan with Leader, C. Does not preserve, or account to Lenders satisfaction for, any of the Collateral or its proceeds; D_ Does not disclose, or anyone acting on their behalf does not disclose. any materlsi last to Lender or SBA; E. Makes. or anyone acting on their behalf makes, a materially false or•misIeading representation to lender or SBA; F. Defaults on any limn or agreement with another creditor. lt Lender believes the default may mate Wy affect Borrower's ability to pay this Note; G. Fails to pay any taxes when due; K Becomes fie subject of a proceeding under any bankruptcy or insolvency law; 1.' Has a receiver or liquidator appointed for any pmt. d'their business or property. - 3. Makes an assignment for the benefit of creditors; K Has any adverse dm ire in financial condition or- business operation that. Lender believes may materially ailed Borrowees'aWlty to pay thin Mole; . L Reorganizes, merges. consolidates. or olherwise changes ownership or business structure wlthout Lender's prior written consent; or M. Becomes the subject of a civil or criminal action that Lender believes may materW affect Borrowers ability to pay this Note. 6 LEMER S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without Wving up any of Us rVft, Lender may. A Require Immediate payment d all amounts owing wider this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. File suit and. obtain judgement: 0. Take possession of any Collateral; or E Sell, tease, or otherwise dispose of. any Collateral at public or private sale. with or without admit. 7. LENDER'S GENERAL POWERS: Wthoot notice and wniwut Borrowers consent, Lender may A. Bid on or buy the Collateral at its salaw the sere of another lienholder, at any price it dx ses B. incur expenses to ooltect amounts duo .urndor this Note. enforce the terms d this.NoW or arty other Loan Document. and preserve or dispose of fie Collateral. Among other thGngs, the expenses may include paynwnts for property . taxes, prior fiens. insurance. appraisals. erwirarnenial remadatlon costs,. and reason" attorney's lees and costs. It Lender kxwm such expenses, it may demand immediate repayment frown Borrower or .add the expenses to the principal balance: C. Release anyone d Rated to pay this Note: D Compromise. release, renew, extend or substitute any of the Collateral; and E. Take any action necessary to protect the Collateral or coftd amounts owing on this. Note. S. WHEN FEOEAAL LAW APPLIES: When SBA is the holder, this We will be interpreted and enforced under federal taw. inciuft.S'BA negotetions. Lender or SBA may use state or rocs{ procedures for rft papas. recon*V docu?nanik giving notiM lorectosing. inns, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or kcal. control, penalty. Um or fiablity. As to this We. Borrower may not claim or assert against SBA any local or state taw to deny. any obligatioN defeat i any claim of SBA, or preempt federal law. 9. SLKZESSOHS AND ASSIGNS: Under this We. Borrower and Operating Company Include the successors of each. an fJ Lender kxkx es Ns successors and assigns. 10. GENERAL PROVISIONS: 12_28-2000 PROMISSORY NOTE Page 4 Loan No 4134924004 (Continued) A. Ag inilkAduafs and entities signing this Note are jointly and severely fable. B. Borrower waives ail suretyship defenses. C. Borrower must sign as documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Landow fens on Collateral. D. Lender may exercise any of. ifs rights separately or IoWhor. as many times and in any order N gooses. Lender may delay or forgo enforcktg'any of its rights without gi-.*V up any of them- F- Borrower may not use an oral statement of Lander or SBA to contradict or alter. the written terms of this Note. F. if any pact of this Note is unenforceable. all other parts remain in effect. G. To the extent allowed by law. Borrower wanes all demands and notices in connection with this Note. inducing presentatertt, demand. protest, and notice of d'wshonor. Borrower also wanes any defenses based upon any cWm that Lender did not obtain any guarr raw. did not obtain, perfect, or maintain a lien upon Colderak impaired Collateral; or did not obtain the fair market value d Collateral at a sale. 11. STATE-SPECIFIC PROVISIONS: CONFESSION OF JUDGEMENT CLAUSE. to the event the herein dosuibod property. or any part thereof, or any inle?est therein is sold. agreed to be sold. conveyed. transferred. disposed of, further encumbered, or arrenated by Mortgagor or by the operation of law or otherwise without written owtsent d Mortgagee first obtained, all dAgations secured by Nils instrtm GM frrespetxlva of the maturity dates aWassed Herein, at the option of the holder Mortgagee, and without demand or notice she# immediately become due OF payable. Consent to one such frwmactien shell not be deemed to be a wahw of the right to require Mich consent to kdm or succeaslve lransactiorrs. The undersigned , hereby authorizes *0 empowers any attorney or Clerk of any Court of recoid.in the. Urded States or elsewhere to -appear. for andj with or Without dodandion riled, confess judgment against the twersigow in favor of the holder. assignee or successor of holder of the Note, at any lime.. for the tug or total amount of MIS lore. together with an indebtedness Provided aor therein„ with costs-of-sukt and attorney's con volt sfon of ton. (10) .porcdnt for conectiorr: and the Undersigned expressly releases atl: errors, waives ail stay of execution. rights of hqu t acrd extension. Won any levy q= real esthte.and all exemption of Wperfy troth levy/ and sale upon execution thereon; and the Understg W expressly agrees to cordemnadon and expressly FS."Uishes al FW" to benefits or exemptions.undet any amd all exemption. laws now in force of which may hereafter be enacted.. 12. BORROWER'S NAME(S) AND SIGNARK E(s By signing below, each kx5vidual or, entity becomes obligated under this Note as Borrower_ SOMME . Mtb? Thomas P- Carbonaro.. Preeklarrt f Attest Thomas IL CWbonsro. secretary The. guaranteed portion of Win Note bas been transferred to a ge*Wed Holder for value. Date 7 l V Rbr147 (tat! ft f'rOWoir5 edirior? W tilt l11151r1ES ' irlfAkl F teR00RATIDM 40 l+, ro ? core. J e I of 4) r +al ONLL aUfIrR:7? • . • U.S. Small Business Administration UNCONDITIONAL GUARANTEE SBA Loan # PLP 413-492-4004 SBA Loan Name Pennsylvania-Delivery Systvvu6 In& Guarantor Thous It. Carbooere Borrower Pennsyhmnla.Delivery Systems, Inc. Lander GE Capital Small Business Rnave Corporatlon Date Oecember 28, 2000 Note Amount $ 586,000:00 1. GUARANTEE: Guarantor may. guarantees psyment to tender of all amounts owing under the Note.. This Guarantee remairis in effed urdl' the Note is paid in' fu0. Guarantor must pay all amounts due, under the Note when: LoVeer. makes written demand. upon Guarantor.. Lender Is not required to seek payment from ahy other .source before do mahding payment from Guarantor. 2. NOTE: The 'Note' is the promissory rate dated 20, 2WO in the principal amount of Five Hundred EVAy Six Thousend b MOO Dollars, from Borrower to Lender. tt IndudO3. any assumption, renewal, substitution, or replacement of the Note, and muaipte notes under a ine of credit. 3. DEFINITIONS: I 'Collateral' means any property taken as security for payment of the Note or for any guarantee of the Note. 'Loan' means the loan evidenced by-the Note. 'Loan Documents' means the documents related to the Loan signed by Borrower. Guarantor or any other guarantor, or I anyone who pledges Collateral. 'SBA' means the small Business Administration, an Agency of the. United States of. America. ? 4. LENDER'S GENERAL POWERS: Lender may take any of the following -atsions at any time. without notice, without Guarantors comm. and without making demand upon Guarantor A. Modify the terms of the Note or any other Loan Document except to increase fine amounts due under the Note; B. Retrain from taking any action on We Nate. the Collateral. or any guarantee; C. Release arty Borrower or any guarantor of. the Note:. , SBA Fan 148 (10198) Previous ed dons obsolete t i . 12-28-2000 SBA GUARANTY Page 2 Loan No 4134924004 (Continued) 0. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any, Collateral at public or private sale, with or without advertisement; G. Bid or buy at any sate of Collateral by Lender or any other Ilenholder. at any price Lender chooses; and H. Exercise any rights It has, including those In the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender. 5. FEDERAL LAW: When SBA is the holder. the Note and this Guarantee will be construed and enforced under federal law, kuluuding SBA regulations. Lender or SBA may use state or local procedures for filing papers, reoordng doc umenta, giving notice, foreclosing lens, and other purposes. By using such procedures. SBA does not waive any federal immunity from state or local control. penalty. tax. or liability. As to this Guarantee, Guarantor may not claim or assert any local or state taw against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law. A. Guarantor waives all rights to: 1) Require presentment. protest. or demand upon Borrower, I 2) Redeem any Collateral before.or after tender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of IL 8. Guarantor waives any notice of: 1) Any default under the Note: i 2) Presentment, dishonor, protest, or demand, 3) Execution. of the. Note; 4) Any action or inactioo.on the Note_ or. Cofiatarat, such. as disbursements, payment, nonpayment, acceleration, Intent to aoceleiate, assignment, collection activity, and incurring enforoement.expenses; 5) Any change in the fkiancial.concition or business. operations of Borrower or any guarantor, 6) Any changes In the terms of the Note or other Loan Documents. except increases in the. amounts due under the Note; and 7) The time or place of any.sale . or other disposition of Collateral. C. Guarantor waives defenses based upon any clam that: 1) Lender failed to obtain any guarantee; 2) Lender fated to obtak% perfect, or maintain a.swurky.interest In any property offered or taken as Collaterat; 3). Lender or others knproperly-valued or inspected the Collateral; 4) The Collateral changed in value. or was neglected, kit, destroyed, or underinsured; 5) Lender impaired the Collateral; . 6) Lender did not-dispose of any of the Collateral; 7) Lender did not conduct a cmumemk* reasonable sale: 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a Balm upon do death or disablily of Borrower or any guarantor of the Note; 10) The financial condition of Botrrower or any guarantor was overstated. or has adversely changed; 11) Lender made errors.or omisslons. in Loan Documents or administration of the, Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral, before demanding paymentfrom Guarantor, 13) Lender impaired Guarantors suretyship rights: 14) Lender modified the Note terms. other than to increase amounts due under the Note. If. Lender modifies the Note to increase the amounts due under the Note without Guarantors.cunsent, Guarantor will not be liable for the increased amounts and rels led interest and expenses. but remains labile for at other amounts: • 15) Borrower has avoided liability on the Note; or V93 of 4) 12L28-2000 : SBA GUARANTY Loan No 4134924004 (Continued) Page 3. 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL' Guarantor wGl preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors. and Lender Includes its successors and assigns. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses. Lender Incurs to enforce this Guarantee. including, but not limited to, attorney's fees and costs. 0. SBA NOT A CO-GUARANTOR. Guarantor's lability will continue even if SBA pays Lender. SBA' is not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note of the'Cobterai until the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities 91gr" as Guarantor are jointly and severally is le. . E. DOCUMENT SIGNING, Guarantor must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain. Lender's Gins on Collateral. F. FINANCIAL STATEMENTS. Guarantor must. give Lender financial statements. as Lender requires. G. LENDER'S RIGHTS CUMULATIVE. NOT WAIVED. Lender may exercise any of its, rights separately or together. as many times as ft. chooses: Lender may delay or forgo enforcing any of its righta.without losing or.lmpa'iratg any of them. H. ORAL STATEMENTS NOT SINDINQ. Guarantor may riot use an oral statement . to contradict or after the written terms of the Note or ids Guarantee, or W raise a defense to this Guarantee. 1. SEVERABIUTY..if any part of this Guarantee Is found. to be unenforceable, all other. parts will remain In,effect. J. CONSIDERATION. The consldeFation for this Guarantee Is the: Loan or any acco r awdation by Leader as to fire loan. 10. STATE-SPECIFIC PROVISIONS: WAIVER OF. JURY TRIAL: EACH OF THE UNDERSIGNED HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR: ARISING OUT OF. DIRECTLY OR INDIRECTLY, THIS GUARANTY, ANY OF THE RELATED DOCUMENTS; ANY DEALINGS AND10R. THE REf.ATiONSt11P THAT IS BEING.ESTABLJSHED HEREBY. THE SCOPE OF THIS WAIVER IS iNTENDED.TO.BE ALL ENCOMPASSING.OF ANY AND ALL DISPUTES THAT MAY BE FIL ElY IN ANY COURT INCL.UDIN.0, WITHOUT LIMITATION. CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS. AND: ALL OTHER COMMON LAW ANEWOR STATUTORY CLAIMS. THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN. WRRING, AND SI4ALL APPLY TO ANY SUBSEOUENT AMENDMENTS, . RENEWALS. SUPPLEMENTS OR MODIFICATIONS TO THIS GUARANTY, ANY RELATED DOCUMENTS OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. IN THE -EVENT OF LITIGATION, THIS GUARANTY MAY. BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. CONFESSION OF JUDGEMENT CLAUSE. In the event the herein described property. or any part thereof, or any interest therein is sold, agreed to be soli. conveyed, transferred, disposed of, further encumbered. or alienated. by Mortgagor. or by: the operation of taw or otherwise. without written owword of Mortgagee first obtainedt -all obigaftm secured by this Instrument, irrespective of the maturity dates expressed herein, all the option of the holder Mortgagee. and without dernand or notice shall immediately becorne due or payable. Consent to one such tranOwdon shag not be. deemed to be a waiver of the. right to require such consent to future or successive transadlom. The undersigned hereby. authorizes and. err>powers any attorney or clerk o t any Court d. record in the United States or elsewhere to appear. for.and. with or, without declaration pled. confess AxlgmeM against the Undersigned in favor of the holder; assignee or. successor of holder of the Note, at any tune, for the full or total amount of this Note, together with all indebtedness provided for therein.. with costs of sift and 12-28-2000 SBA GUARANTY Page 4 , Loan No 4134924004 (Continued) attorney's commission of ten (10) percent for collection: and the Undersigned expressly releases: all errors, waives all stay of execution, rights of inquisition and extension upon any levy upon. real estate and all exemption of property from levy and sale upon execution hereon; and the. Undersigned expressly agrees to condemnation and expressly relinquishes al rights to benefits or exemptions. under any and all exemption laves now In force or which may hereafter be enacted.. 11. GUARANTOR ACKNOWLEDGEMENT OF TERMS: Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Note and this j Guarantee, including ag waivers. 12. GUARANTOR NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee. , au Af? to , Thomas R Garbonaro FIRST LOAN MODIFICATION AGREEMENT STATE OF MISSOURI COUNTY OF ST. LOUIS GE# 6302334 SBA Loan # PLP 413 492 4004 THIS AGREEMENT between PENNSYLVANIA DELIVERY SYSTEMS, INC. ("Borrower") and GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, ("Lender"), WITNESSETH, that WHEREAS, Lender is the holder and payee of a Note dated December 28, 2000, by Pennsylvania Delivery Systems, Inc., in the principal amount of $586,000.00; WHEREAS, The principal balance as of September 17, 2004, on said Note is $195,496.75 and the accrued interest as of September 17, 2004 is $ 2,126.02; WHEREAS, Borrower has requested that Lender modify certain provisions and conditions pertaining to the aforesaid Note; NOW, THEREFORE, in consideration of good and valuable consideration, Borrower agrees with Lender, notwithstanding anything in the Note to the contrary, to modify the Note as follows: The Note. is hereby amended so that monthly principal and interest installment payment due for the :month of August 2004 has been deferred. The Note Is-further amended so that monthly principal and, interest Installment payments due for the months of September, October, November and December 2004 will be fixed at $1,20000. Interest has continued and will continue to accrue during the deferment period. Beginning January 15, 2005, monthly Installment payments for principal and interest will resume in the initial . amount. of. $16,478.00, based on current rate and maturity. All paynents shalt be applied. first to. accrued interest to date of payment, then to principal then, if any, to any other accrued fees. Borrower shall then pay the final payment due on. the maturity date of January 15, 2006, which shelf Include all remaining outstanding principal, interest and fees. Should the installments set out above be insufficient to amortize. the Note by the- maturity date of January 15, 2006, or be more than is necessary to amortize it as of that date, the installment. shalt be adjusted in order that the loan be amortized over. the original term of the Note, including. all outstanding principal, interest and fees. All of the other terms and conditions of the Note shall remain unchanged. Borrower hereby authorizes and directs Lender to take any action necessary to conform the original Note, security instruments and other collateral documents to the terms as herein modified, and by these presents accept and confirm their liability under said Note, -security instruments and other collateral documents, with the terms as herein modified. Loan #6302334 Page 1 of 3 This agreement is subject to Lender's approval. Failure on the part of the debtor to comply with these terms will render this modification null and void' and, in the event that this modification is voided, the date of default shalt revert to the date of default set prior to the execution of this modification. IN WITNESS WHEREOF, the parties have executed this instrument this day of September, 2004. BORROWER: Pennsylvania Delivery Systems, Inc. By:.Q\", Thomas R. Carbonaro, President Attest: (print name) GUARANTOR: Thomas R. Carbonaro, individually Attest:• A (print name' Loan # 6302334 Page 2 of 3 LENDER. . USt??gS ration ON, a Delaware coYp° GE CAptTpI' SMALL- IFINANCE COR BY: :tpr oUn. ..'strator attest: .r• -- F ? i .. f t P?e3of3 Loan 6302334 RECEIPT FOR PAYMENT ------------------- Cumberland Countyy Prothonotary's Office Receipt Date 4/11/2007 Carlisle, Pa 17013 Receipt Time 15:16:19 Receipt No. 191435 GE CAPITAL SMALL BUSINESS (VS) CARBONARO THOMAS R Case Number 2007-02008 Received of PD LAMM RUBENSTONE IM Total Non-Cash..... + 78.50 Check# 99142 Total Cash....... .. + .00 Change ........... .. - .00 r Receipt total.... .. = 78.50 ------------------------ Distribution Of Payment -------- -------------------- Transaction Description Payment Amount COMPLAINT 55.00 CUMBERLAND CO GENERAL FUND ,? TAX ON CMPLT .50 BUREAU OF RECEIPTS AND CONTROL I SETTLEMENT 8.00 CUMBERLAND CO GENERAL FUND AUTOMATION 5.00 CUMBERLAND CO AUTOMATION FUND JCP FEE 10.00 BUREAU OF RECEIPTS AND CONTROL_' 78.50 a owl LN .a„ r a i t EX?,??+ a ' David J. Lanza i::D. No. 55782 356 North 21" Street Camp Hill, Pennsylvania 17011 (717) 730-3775 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, Plaintiff V. THOMAS R. CARBONARO, Attorney for Defendant 00"A. P IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 07-2008 CIVIL ACTION - LAW o Defendant DEFENDANTS' ANSWER TO COMPLAINT rJ 'Y1 N) 0 1. Denied. This averment is beyond the knowledge of Defendant and is therefAre dined. By way of further denial, Plaintiff fads to define "national financial institution." 2. Admitted. 3. Admitted. 4. Admitted in Part. Denied in Part. This averment constitutes a legal conclusion that requires no responsive pleading. 5. Admitted in Part. Denied in Part. The document speaks for itself. 6. Admitted in Part. Denied in Part. The document speaks for itself. 7. Admitted. 8. Denied. It is denied that PDS' last payment was made prior to the bankruptcy. 9. Admitted in Part. Denied in Part. The petition was converted by Order of Court over the objection of Defendant and Debtor. 10. Admitted in Part. Denied in Part. The exact amount of the credit is hereby denied. Strict proof is hereby demanded. By way of further denial, the bankruptcy proceeding has yet to be resolved and certain proceeds have yet to be distributed. By way of further denial, it is denied that Plaintiff obtained full value for the assets of PDS that were sold. 11. Denied. Plaintiff has received total payments in excess of the original principal balance. By way of further denial, the interest and late charges may have accrued improperly during the pendency of the bankruptcy. Plaintiff has no basis to charge the aforesaid legal fees. 12. Denied. The document speaks for itself. The aforesaid averment constitutes a legal conclusion. 13. Denied. It is denied that Plaintiff has incurred actual charges in the aforesaid amount. 14. Denied. Defendant has made reasonable inquiry regarding the balance due, if any, and has failed to receive satisfactory answers or documentation from the Plaintiff. Plaintiff has improperly added charges while Defendant awaited answers to his inquiries regarding the balance due, which charges might have been unnecessary had Plaintiff responded to Defendant's inquiries in a timely fashion. 15. Denied. The aforesaid averment constitutes a legal conclusion. It is denied that Defendant is in default. 16. Denied. The document speaks for itself. The aforesaid averment constitutes a legal conclusion. It is denied that any such waiver is legally effective. 17. Denied. Defendant has made reasonable inquiry regarding the balance due, if any, and has flailed to receive satisfactory answers or documentation from the Plaintiff. It is denied that any amounts are due and owing at this time. Wherefore, Defendant respectfully requests that Plaintiff's Complaint be dismissed and that judgment be entered in favor of Plaintiff. Respectfully itted, David J. Lanza Attorney I.D. No. 55782 356 North 21st Street Camp Hill, PA 17011 Attorney for Defendant 110-7 VERIMATION I, Thomas Carbonaro, verify that the statements made in this Complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements made herein are made subject to the penalties of 18 Pa. C.S.A §4904, relating to unsworn falsification to authorities. Date: Z' tq By: Thomas Carbonaro CERTIFICATE OF SERVICE AND NOW, this 25th day of May, 2007, the undersigned does hereby certify that she did this date serve a copy of the foregoing document upon the other parties of record by causing same to be deposited in the United States Mail, first class'postage prepaid, at Camp Hill, Pennsylvania, addressed as follows: Sherry Lowe, Esquire 3600 Horizon Boulevard Suite 200 Trevose, PA 19053 By: David Lanza 140-7 {4 t r ? Y V{q i( ' x ? > ? ? ? C.._. LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. THOMAS R. CARBONARO Defendant. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 CIVIL ACTION PLAINTIFF'S REQUESTS FOR ADMISSION, INTERROGATORIES AND REQUEST FOR PRODUCTION OF DOCUMENTS ADDRESSED TO DEFENDANT NOW COMES Plaintiff, by and through its undersigned counsel, and requests the Defendant: (a) admit, for purposes of the pending litigation only, the truth of the following Requests for Admissions, pursuant to applicable Pennsylvania Rules of Civil Procedure; (b) answer the following Interrogatories and Request for Production of Documents, pursuant to applicable Pennsylvania Rules of Civil Procedure: 3804070 REQUEST FOR ADMISSION 1. The authenticity and genuiness of the Note, a copy of which is attached hereto as Exhibit "A". 2. Pennsylvania Delivery Systems, Inc., signed the Note. 3. The authenticity and genuiness of the Guarantee, a copy of which is attached hereto as Exhibit "B". 4. Defendant signed the Guarantee. 5. The authenticity and genuiness of the First Loan Modification Agreement, a copy of which is attached hereto as Exhibit "C". 6. Pennsylvania Delivery Systems, Inc. and Defendant, signed the First Loan Modification Agreeement. 7. The Note, Guarantee and First Loan Modification Agreement are presently in monetary default due to payments not having been made thereunder. 8. During the bankruptcy of Pennsylvania Delivery Systems, Inc., payments in the total amount of $115,926.13 were made to Plaintiff by the Trustee. 9. No further amounts are due to be paid to, or are expected to be paid to, Plaintiff by the Trustee. 10. As a result of the aforementioned monetary default, all amounts due and owing under the Note, Guarantee and First Loan Modification Agreement are now due and owing in full. 11. Despite the payment of the aforementioned $115,926.13, there remains due and owing to Plaintiff the sum of $141,311.71, plus per diem interest of $14.85 from and including 1 March 31, 2007, and continuing. 2 12. In addition, pursuant to the provisions of the Note (as modified by the First Loan Modification Agreement) and Guarantee, Plaintiff is permitted to collect attorney's fees and costs incurred in collecting its indebtedness under the Note and Guarantee. Such legal fees continue to accrue. 13. Defendant has failed and/or refused to pay the balance due on the Note (as modified by the First Loan Modification Agreement) and Guarantee. INTERROGATORIES AND REQUEST FOR PRODUCTION OF DOCUMENTS 1. If your response to any of the aforementioned Request for Admission is anything other than an unqualified admission, please: (a) identify with specificity any facts supporting your answer; and (b) produce copies of any and all documentation supporting your answer. LAMM RUBENSTONE LLC DATE: 7 BY: BRIAN H. SMITH, UIRE Attorney for Plaintiff 3 LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 THOMAS R. CARBONARO CIVIL ACTION Defendant. CERTIFICATE OF SERVICE I, Brian H. Smith, Esquire, hereby certify that on this 7th day of April 2008, I caused a true and correct copy of Plaintiffs First Set of Requests for Admissions Directed to Defendant to be served upon the following counsel of record via first-class mail, postage prepaid: David J. Lanza, Esquire 356 North 21st Street Camp Hill, PA 17011 LAMM RUBENSTONE LLC BY: BRIAN H. MI , ESQUIRE Attorney for P miff 4 t U try tn?s Nye. SE, i0 FAY' to :08Y ltd 4 dtw ? t: _p otat ?cwoo p bfloo, Uj rdiu` torsi die + OP81 ate oon?' oe .tom two °r e ` y tot of Prh? of te+te. wt+?! S is, eao per , ,tor means ,00, Of th?s: : >o? .sue BW by Ode ar ?, "woo o"woo (owed to eras . ?? a mew elr' a .Loon tra n.80 " eans u e busene !'d etds?` sre 1 sow TEFOS' ae P OB by. .0.110 W* 0.. ragm Pf?'! m .a? ?,ytnert•: y.fS: ?e and. WY pa'°_ oil on* i of 41 *ken awe*$ 10 ,pr w emceed iad? in fbe ate >ao °trwwvo Owbut w^ d °` ?. r`adPtr u+.°°"rs'° d +t+a dua'iat`' : u??' is ?, Oe "Coved ;nW 0 IA *wn Wes. ss+? rom 47 tt? swap -4 . tiI susw*Ss 12 ?82000 PROM MORY -NOTE Page 2 Loan No 4134924004 (Contgnued) 'this b a vwbW In terem rate not, web an kowdtdeeest rata of l ism udvr t sltaN accrue on the WkK" balance of "mote at a E4epalfon rata tnse4 an the 'vrkr>!s`Rate" plus 2,e0 x The -Pritr+e flaw s>a» be defirtoct as no towreat prima lending rata as PA0$ rea k the WaN Sure! do'nML The V09 W. Aesest rate Is bases on rte -Prq Elate- of 9 %, the -Prkrte Rate in ~,on the dote SBA received the kan appNtanoa The rate shaN kwome or decease tom* an 1t?e OM day of each month during the tam of the NOW The aauartt that Ina kttaest on this Noes ntsy vary h Named fry a odttrg arw Door. (t) [tier »?aidtetrrt? k+twoo rate (oefty _wiN r of eaeeed 3% above tM'kd tt kterest rate. (*7M rakikatsn.Interest rate (floor) wM not be kss. than 3% below. #w &*W. interest vM& ftolder"give wr#kn aollce to the Undenftned of eaeh kxxease or decrease k% the koeml rate ww" U*v (..days alias tits of ec*ft date of each raft squstment; however.. the nockotim of the Interest rate is not oontingont.an whether the notice is gtven. N wfttsbndng the loregoing PrOWSIM for changes. In Qua rate of k4erest, at no tine a":the interest Tate euoeed Bte maximum rate pormMed by apokabb lark Upon *W-0tan9es in the*darast rater.-Ire abMV.ntonWy priic" and Interest p"ftwft.0" be adlnrsted ter amorflte theloo% " loco balance In equal monthly paymci to of princop- and k*wea over lets rentait ft tens of the loam ' _ gttetesti an gtis note ie oongtndad en a 301360 sGnp14 lnteredt basis: that ls, wtYr fha etooepRton of odd irtaxs in she Nrsf psyrnntt Pabd: nmdhly ktlerest N es teubled by oppWa t1+o 40o, of the 'fin wo Interest rate a year of 360 days,; valipiled by the auesfaridkig prku*d babrw% rMUl "W bya lrtofWret 3o day . Interest ter that add days Is t aimlaW an the t"b of lice *dual days to the neut. [YIN atorNttWIW a 3664ay.year # $BA-.purchas" the guarontpod Poltioq of tho unpaid pdrdpal batwn Ire-interest rate betorne6 fixed st:the One of the earp;at uneurod•payment_d4aft 1/there is no teWAW.paymgd detaulk the. rate becomcrflmed'al.tMexatein.eflett autho ne of purchno. lrApl of T114 :UM EAT V.NGOMWnOMALLY WAIVES M RIGHTi 10 A JF7RY Tf11Ak OF ANY dAfltl:.QR CAVSt Of ACTfON 'BASED t1P0A1 OR AA MM ON# Oft O CfLif'OfEaN CTt_Y. ."VS. MOTE, AMY OF THE FWIATV f OOLtlMWM ANY VGMJW2$:AHiEM!ORTMRMAlfON WTt1_AS13DOM:WrAMAWWD"SIWY.-TW.SODPl;©FTips!D 01 ISpi[ DTOBE' ALL - MOWASSMM( OF Aft. ANO:ALL NSPVTeS THAT tltllY.?DE FKW Oil 1tNY COURT >HfUnwaa Allow. ii L41TAT1OK _ CON[AACT. LAN9S,, TOti'r = AM93S BI:MKC" dF .tWFY GIAAASr. AHW ALL UMER COW#M t111M; At*VM XM'i1tiORVi CLAKM 7HIS.WAfitER. tSatiliElNQ'QAt MNEANtMG THAT: IT MAT MdT bE MOON" 8T11ER ORALEY, OA :NV WAtWM A1W Si MA L APPLY TO -ANY SIEMMUENF i1tAEf10tAHfYS,. i11fALS:35lPPt S an lllil IF.Al l TO TM-ffI %YE, AffY ftIMATED fJ['t'S:OR ANY OTHER DOCIAIEMlS.9" AGFgMLIENi5 AE1J W4r- TO TM TRANSACMN Oi"ANY AQLAMW 7RIW$AMOW iN ytw:EVENT OFtMGATXK THIS NOTE MAY BE FII.ED:AS A va*Tm coNBENT TO A TmL Brun dounT 4. -RI()MT' TO PREPAY: Borrower may prepay Oft [Vole. Bon wer may prepay 2(i percent or, less of the unpaid principal balance at 'DAY time wkhout notice. n Sotrower.prepays more-than 20 percenl.oW Me Low has been sold on the 'secondary market. Borrower alusl: A. Give Ler-KW wditn notice: 8. Pay of abcrued interest and' C. If." prepaytrterd b tooeived less than 21 days from the date Lender receives the "im. Pay an amount .equal to 21 days' interest from the date Laurier receives the notlok less any koeroo eeerued durbV 21 dais and paid under subparagraph B. tl 9oriawer does not.prepay w ll in 60 .days from the date. Lender receives' the nooflce; Borrower must give Lender a new [ notice. S. ' OEFA1iLT- Borrower is in d'efauit.under this Note 6. Borrower does not make a payment when due under Uiis We. or rA Borrower or • A. Fnds to do artyihirig required by this We and other Loan Documents; I f? n ? sire. v d 4). =20 ?d00 PROMISSONY NOTE . Pa" 11 .Loan No 4134924004 -. (t,onttnued) B. Oetauks on any other loanvrith t_eWw. C. Does not preserve. or account to Lern¢er'3 satisfaction for, any. of the CoOaterel or its prooeeds; 0. Don not disclose. or. anyone acting on thak belie does not dscose. any malarial fete to Lender or SBA; E. Makees, or O%Ione acting an#wk behag makes: a wiateriattyfalse or-misieadnp representation to tender of SBA; . . F. DebAft on any ban or agreemerN with another creditor. it Lender bsheves the default may materiaNy affect Bor ~a abpty to pay this Note; G. Fails to pay any taxes." dua: K Becomes the subject of a proceeding under any bankruptcy or inisdvency low: L' Has a receiver or WAdtfater appoirNed for any part. of'Uwk business or pwpeAT. J. Makes an asdg ww t for the benefit of crecAtors; _ K 'His- any adverse etMge. in financial conddivn .or•.business operation that. Lender behaves may materially affect i Bwwwee3 ab* to pay. this fide-, _ L. Reorcgenhm merges. eoasoitddes. or. ovierwise dw9es ownership or business stricture without Leddees prior written consent or M. Bensons the subject of. a ndvW or crknVW action that under bekv?es may materially' affect Swa weirs ability to pay tits Note. 1 6 t SNOWS. liKM iF ?HERE IS A DEFAULT-, 1{ Without notice or demand and without giving up any of its .*Ihft. Lender may.- -A. Reandre tmmadrate payment d.. &A amwA is owiung.under oft Note: S. Coiled al amounts awing from only 8onxwer or GuaraMoc; Q fib 94 and Main judgemet*. 0 . Take possession 4f any CoNswei; or E_ Set loose. or tithervriz{a dispose of. any CoWteial at pub4c or private sale. with or y K.w.4 advertuserrieni.' .4. tf lER'SGEt f3/kL.t?ta1NEASi Without nofte end wAbaW Oawowe,r& consent. Lousier rhay t A. Bid on.or bury the Coifalwal at 13 saWoribe sate of anotfner fenhokler, at aay *k a it chooses; .8 : Incur expenses to COW ernounts due' under 1Ms We. enforce life ten" of this :Note or any. other. Loan :DoCnmrnent, and preserve or dispose of the. CofateraL Amo11g>0ar0. thirw. the eMonsea:may`indude paymeris4or prbpeny taxes. gwW pens. Insurance. approtsals. envirorinnenU9 ramadatkun costs, and reasor.atnie attomWs'feea and,s b.sls- If Leruden LKairs such euwedses, it may darrnand. Lnmediate repayment troas 8orrerrer of .add:. the expenses to 4he print;lpaf bafance; . C:, Release anyone obhgatert to pap this Note; M Certnprtxnese, release,. renew, axten dw substitute any of the C;afterah and E. Take any.action necessary to protect the CbIateral or oohed arnounts owing on. this. "e- 4. WHEN FEOEAAL LAW APPUIES When SBA Is the holder. lhis Note wit be .interpreted and w4orced under federal law. 40idirV SSA regulations. Lender or :5BJ1 may use state or boat procedures tor firing papers, rurwding ft== K giving. notice, fooeelosirg hers, and other . purposes- By usfing suoft procedures, SBA dries not wain arty. federal imttnwft from. state oc tool. con troi, penaky. tax, or t habOy. As to this Note, Borrower may not dalm or assent against SBA any local or state law to deny any obfpfion,-deieat t any dairn d SBA. or preempt federal law. oRV t4oTE pKOMiSS _ ?npctued? - pwa i. ?i 12-28 -? t ,y 6apiW . to er?eb _ vender LpG t? 4134_ we are. Loan Cbp a at?'g Ih the . Lecider and o to A !?? ai S'satys o dote at any tarand any order ;d c dour aecessal . ixeS 00 CoMalage tones a We• C 13 xmvmg ovmx h oc amwoolft `?s rosary or;?w' as 0nony 1 them tetras of sttiis e. Pedecu d its mw OJP any *0 wt any W to ao ? owdso arty of its. dow veiiho ? ? so aor?tr? °r O tt?K3 "OW kdAl&* O. t dew .at torte ant statea* of ter Palm tallow, b ,ette - in o ff' vn Upon env dako E. in, van son,ower mnt a e" N ?, ? ar?y a EaRe9tn< 1. Toure MI taw' and notice d . Parted or rna a•ua?M ? oterat at a &d CWA obtain godOt fair that Londlef not ,Obtain rt'e' gibed Pa?y'? ati waled by ! ° Pi Y1SKfNS- event ?hs.he at nrow * . .?g sew CLmjsr dopw i1. AT OF .,St1OG µf:N f tre?eRed• IJta tirstt ?. mas I ort9ei4e?o' ? ?g g v d ed. 'r'.oont bower ?iF0SI tobU ?,.o eSl ten °i n9 d be s decd.. . OW _ wither twr?.. at the oP?On st+ " ot . ees' "in tt+e is ' of taw or dlw s'eptesseti ` to one Such irar:s?? hem 0A ?tsr? It+e ? w$t3 # At.at" q1e ctogodoa 01,00 in, ?. t • " tre om iot .and. ?, t trot r ?3.r e`e to ate, of: yapesK. eht t1B: Srp se i3or to e t SWes W a3SWWD orttlare.. 1A(i1? gN?: notice. - .. ,. octns+?? . A tt?e 1roWer, ydad-W . ie+N -the r1g?x s° raois e d sit id tavot FA, . dss M °r " U011% logo. as with ... expr of t is to' at>tx„ey os c ale iRwas" irde^s 0 *Okla t and. dtg ems. pi'o tfie uncist?a tea e d tynq..tf ltlg t t .0011 P te. ten+Y to der tra y U&S PON in Some' of at. axeO Pay. ?1its undue t,? i SBA Loan 0 PLP 413-492-40 04 SBA Loan Name Pennsylvania DWKWY SyStahs, Inc. Guarantor Thoam R. Carbonaro Bomower Pennsylvanl8-OWvery Systems, kit. Leader GE Capital SmWI Sushms Finance Corporatlen Oaie Qocember 29.2000 Note Amount $586,000 ff0 3. DEFINITIONS: 'Collateral' means any property token as security for paymefnt of the We or !or arty guarantee of the Nate. 'Loan' means the loan evidenced byahe Note: 'Loan. Oocumenta' means the documents related to the Loan signed by Borrower. Guarantor or arty otha owrantor, or anyone who pledges Collateral. 'SW means the Small Business Admk9stration.. an Agency d the. United States of. Ameer'rca. 4. 'LENDER'S GENERAL POWERS_ Lender may take any of the Wowing actions -at aray time, without notice..wittwol Guarantors consent, afid'wlttxU mdkkV demand upon Guarantor A .Madl y the temps of the.Note" -any other Loan Ooctinux t amo to increase the amounts due under the Note; 0. Refrakl' from taking any action on the Note; ft Collateral, or any guarantee; C. terse any Borrower or any guarbnfor of tare Note; . WA,Fomr 148 (tOMM Previous eMom ot>saiets 4- 12--28-2000 SBA GUAMNTY Page 2 Loan No 4134924004. (Eontiaued) 0. Compromise or settle with the Borrower or any guarantor of the Note; E Substitute or release any-of the Collateral, whet W or not Lender receives anything in mum; F. Foreclose upon or otherwise . obtain; and dispose of, any. Collateral at public or private sate; with or without advertisement; G. Bid or buy at any said of Collateral by Lender or any other ienholder. at any price Lender chooses; and H. Exercise any rights it has, including those in the Note and other Doan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against Lender. 5. FEDERAL LAW: When SBA is the holder. the Note and this Guarantee will. be construed and enforced under federal' law, _ krduding SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording doaatnents..,giving notice. foreclosing glens. and other purposes. 'I By using such procedures. does rat waive airy federal immuW f(om. state or local control, penalty. tax, or iabfilty. As to this Guarantee; Guarantor may not claim or assert any local or awe taw.against SBA to deny any obbgation, defeat any claim of SBA. or preempt federal law. 6. 431-IT'S, NOTICES, AND DEFENSES THAT GUARAM'OR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to 1) Require presentment. protest, ordomand upon Borrower; .2) Redeem any. Collateral-before-or after.L6.ndlerdisposes of it-3) Have any disposition of Colateral advertised,. and 4) Require a valuation. of Collateral befdfe or after under disposes. . of It. B. Guarantor waives an' notice of: 1) . Arty. default urider the. Notes 2) Presentment, dishonor, protest. *,(* and: 3) Exeoutiorr of the. Note; .4) Any. action or inaction on the. Note. or: 011atetal, such as . disbursements. pay mwiL nonpayment. acosieratiorr; Intent to accelerate, assipmeM.ool tkkt itdfvity,landincutrktg errforoement!expenses;: . 5). Any change in the financial cortdi?n or buslitess :operaffons of Borrower or'any guarantor 6) Any changes In the terms of, the i!kite or other Loan Documents. except increases In the. art our is due utiderthe . Note. and 7) The time or place of any sale or other disposition of Collateral. C: Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee .2) Lender failed to obtain. period, or maintain a.securky.interest in any property offered or taken as CoWeral: 3). Lender or others. improperly-valued: or Inspected the Collateral, 4) The Collateral changed in value. or was neglected, lost, destroyed, or.underinswed; 5) Lender Impaired the Collateral: . -6) Lender did not.dspose of any of the Collateral; 7) Lender did not conduct a com nordaly reasonable sale: 8) Lender did not obtain the fair madw( value of the Collateral; 91 Lender did not make or perfect a claim upon the death or disability of Borrower or.any guarantor of the f?ote; 10) The.finandal condition of. flotrower or:any guarantor was overstated. or has adv r changed; 11) Lender made errors or omissions- in Loam Documents or. adman irwn of the Load; 12) Lender did not seek payment from the Borrovror, any otfter guarantors, or 'any Coaateral ° before dornandtng payment from Guarantor 13) Lender impaired Guarantors suretyship rights; 14) Lender modified ft Note ternts, other than to increase amounts: due. under the Nfote.. it: Lender models ft Note to increase -the anrounts due under, the Note without Guarantor's. gone. Guarantor will. not be liable .tor :the increased amounts and related interest and expenses,- taut rernai<ts a" for. at Whet` 13ittrotmfs: 15) Borrower has avoided liability on the Nate; or r 1 t i if. in 7 VAMA 1228-201)0 SBA GUARANTY ? Page 3: Loan No 4134924004 (Continued) 16) Lender has taken an action allowed under the Note, this Guaranlee; or.other Loan Documents. 7. DUTIES: AS TO COLLATERAL Guarantor wdl preselrve, the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to ptmserm or depose of any Collateral 8. SUCCESSORS AND ASSIGNS: Under this Guarantee.. Guarantor Includes heirs and successors, and Lender includes its successors and assigns. 9. GENERALPROViS10NS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay a8 expenses. Lender incurs to enforce this '.Guarantee. Inducting, but not limited to, attorney's fees and costs: 8. SBA NOT A CO-GUARANTOFL Guarw*Ws lability will due even if SETA pays Lender. 88A is not a co•guarantor with Guarantor. Guarantor bas no right of contribution from.SBA. C. SUBROGATION RIGHTS.. Guarantot Ms no subrcgalion-fights as to the Note of .the Colateial until th6 Note is pakt in fu1 0. JOINT AND SEVERAL LIAGN.M:, AN MdMduais and entities sigM.V as Gumentor_are loindY and severayy.Itadie:. . E. DOCUMENT SIGNING. . Guarantor must sign: aq• dvcuniotits n ti! at any lane to a q'mh y wri_ h The' Loan O©ccrrner+ts and to .enable tertiler to acquire, rfed. or* maintain: Landers Gems oft Coffaterat F. FINANCIAL STAT'EME1 TS. Guacentot liid gir l_ Oiler fin al .etsterrrents. as Lei?der-regc?es.: . G. t.ENDER'S RIGIiTS:CUMUtATtYE, l T WAIVED. :. Lertcter may eic, arty of Its:t.%ft&,aepantt4 or to?etfie? as many times as It chooses: Lerxfer may "dste?jr or idr+g+Q :edamms" ©t its rights vtitAohi toslt or ,irr aiF g any-of 'them:. H. -ORAL STATE=MENTS NOT-BINDING. Gua*tor ma'y- no use.an OW atatameit.-- contradict-or`aftertlie: vwven farms of the-N.066 or11" Goa antee, of ta:raise 844eiise to this Guarantee: 1: S: SEtiAl3tt.ITY. m a" pact' ct t#tis. duararitee, isaeratti. to be uasMorcaabie, al nttrer. parts will raaiatn in:e(lect. J. CONSIDERATION. The vonsldwalic6 for 110 Guarantee, is the loan or any accormModatl by-Let tler as to the Loan. IM S'T`ATE-SPECIFIC. PROVISIONS: WAIVER OF. JURY TRIAL EACH QF .THE UNDERSIGNED. HEREBY UNCONDITIONALLY WAIVE$ ITS RIGHTS TO A JURY TRIAL OF ANY:-CLAIM OR CAUSE OF ACTION $ASED' UPON OR ARISING OOT'OF.;OIAEC`fLY OA {NDIREC-11Y, THIS GUARANTY. ANY OF THE RELATED DOCUMENTS, ANY' DEALINGS AN*0R : Tm. A0ATIbM"P THAT IS BEING . ESTABLISHED HEREBY. THE S .OPE OF THIS WAIVER IS INTENDED. TO. BE ALL ENCOMPASSING .OF ANY -AND ALL DISPUTES THAT MAY BE FILED. IN ANY UdURT .INCLUDING WITHOUT U)IMMOK CONTRACT CLAIMS. TORT CLAIMS, BREACH OF DUTY C. AVAS. ANND: ALL OTHER COMMON LAW AMDrOtT S_r II.- WAY CAWS. .THIS 1NAIV£H IS IRREvowLE MEANING THAT IT MAY: NOT BE .114. I S0lnw EffHM ORALLY flR: iN WRiIUM. AND SMALL APPLY TO . ANY SUB960LIEfgT. AMENDMENTS, . RENEWAL SS. SUPPLMENT$ .OR UOUIFMTI0NS- TO. WS GUAR41SITY. ANY RELATED DOCUMEKM OR ANY- OTHER D=MEM . OR AGREEI IT'S -RELATING. T0, MS . . MJ4Y.-BE LSQ TRANSACTION OR ANY RELATED TRANSACTION; IN . -b OF LITIGATfOW, TH#S (3UA ANN . AS A W`RITTEN_ CONSENT TES A TRIAL. BY THE COURT. CONFIESSION OF JUDGEMENT CLAUSE. to the event the Mersin dowbed property. or wy-part.-thereof. of any We" ot,,furtl>er enaurbered:.'er atod:by Mort#dgex•or by: . therein Is: sold, agreed to be said. conv"9d.:transferre0.. - the operation of taw -or. otherwise. wWxM item mmnt ©t Mortgagee tirsl - obt kwil. -al obftallms - sepur. - by this. ihsi mrerd, irrespective of-the ,matur&l? dates expressed herein! at the option ol?the twtdet ?, and wNhwA demand or nctiosshah ir+xnediatey become clue or payable..Gwrsent to oni Birch Lr?uon shag cot: bAr. dpaated to Ile a walrrer of 'Me-. dent fo reguire such consent to tul ue or sti vp ;transactions: Tlko wWwsigrred hWQW_ . and- at ipuw is- y Court oI-record in the United SiaRe or eberifie[e to appearaor.artd, watt or wldioui declsratfon ?piw morel! or derk Wed, confess judgment against the Undersigned in favor of the holder: ass>gnee,or. successor of hofdor of Nre Note, st eny Nine. _tor the full or total amount of this Note. together with aN k4ebtedness wwdded for .therw*k. 'vrlth costs of suit- and FIRST LOAN MODIFICATION AGREEMENT STATE OF MISSOURI COUNTY OF ST. LOUIS GE# 68023M SBA Loan # PLP 411452 4004 THIS AGREEMENT between PENNSYLVANIA DELIVERY. SYSTEMS, INC. ("Borrower") and GE CAPITAL SMALL BUSINESS FINANCE CORPORATION, ("lender"), WITNESSETH, that WHEREAS,- Lender is the holder and payee:of a Note-dated December 28,200G, by Pennsylvania Delivery Systems; Inc., in the principal amount of $586,000.00; WHEREAS, The principal:balance as of September 17, 2004, on said Note is $195,496:75 and the accrued interest as of September 17, 2Ob4 is $ 2,126.02; WHEREAS, Borrower has requested that Lender modify certain provisions. and conditions ' pertaining to the aforesaid Note; NOW, THEREFOAt, .in. consideration:.of good and valuable consideration, Borrower agFees with-Lender; notwithstdnding:anything i"n the-Note to the contrary, to-mod the Note as full: The. Note. is hereby amended: so that; monthly -priincipat' and interest ins.. rhent Qa at- due for the month of Aagust -2004 'has been '-deferred. The Note is fu"her . ai0eTvt d so their- mo?hly principal-.and: lntwtot Installment payments date for the :moiNth's? Of September; October, November and `Decer ber 2004.wiff: be fitted at $1,2f10.00. Interest has continued and wilt continue. to accrue titiring the deferment period: -Beginning January 14,2005i m6rithly' .Installment payments for principal and.li rent. Varna resume In the Initial amount 61: $15,478.00j based on current ! rate. and -irnaturtt?t: All payments shall be applled:first to: gem, dd interest to date.of payment, then td: principal then, if any, to any other accrued fees. Borrower shall thenpay the final. payment "duo on, the maturity date of January 15, 2006; whlch shall Include all remaining :otitstanding principal, interest and fees. Should the installments set out above be insufficient to amortize- the. Nate by the maturity date of. January 15, 2006, :©r be more than is necessary to amortizo lf.as of 4hat .date, the Installment. shall be 'adjustecl in- order that the -loan be amortized over. the original. term. of the Note; including all outstanding principal, Inter-est and fees. All of the other terms and conditions of the Note shall remain unchanged. Borrower hereby authorizes and directs. tender to take any action necessary to. conform the original Note, security instruments and other `collateral' documents. to the - terms as . herein 1 modi fied; and by :these presents accept and confirm their liability under said Note, security instruments and other collateral- documents, with the terms as herein modified. Loan #6302334 Page 1 of 3 This agreement-is subject to. Lender's" approval.. -Failure on the part of the debtor to comply with these terms wiN render this modification null and void` and., in the event that this modification is voided, the date of default shall: revert to the date of default set prior to the execution of this modification. IN. WITNESS WHEREOF, -the parties have executed this instrument this day of September, 2004. BDRROW ER: Pennsylvania Dellvery.Sy$tems, Inc. ------------------------- Fay: '? . LENDER: L 60004ESS carproots GE CAPtTAL SfV1AL ' pelay++are FtN CB EORpoti-A 3ON, a By' Je fec i.0 9 f Atvcin A ints#ra#o 9 rx, Wil D MAY-,06-2008 TUE 09:59 AM FAX NO. P. 03 David J. Lanza Attorney I.D. #55752 CALDWELL & KEARNS 3631 North Front Street Harrishitrg, PA 17110 (717) 232-7661 GE CAPITAL SMALL BUS.INESS FINANCE CORPORATION, Plaintiff IN T1IL COURT OF COMMON PLEAS OF CtJMBERLAND COUNTY, PLNNSYLVANIA VS, THOMAS R. CARBONARO, Delendant NO. 07-2008 CIVIL, ACTION DEFENDANT'S ANSWER TO PLAINTIFVIS RFOUESTS FOR ADMISSION 1, Admitted. 2. Admitted in part. Denied in part. Thomas Carbonaro signed a Note on behalf ol'Pennsylvania Delivery Systems, Inc. Admitted. 4. Admitted. 5. Admitted. 6. Admitted in part. Denied in part. Defendant, Thomas Carbonaro sinned the Modification Agreement on behalf of Pennsylvania Delivery Systems, Inc., and individually, 7. Denied, This avennent constitutes a legal conclusion, 8. .Denied. At the time this request was drafted Lind sorved, final distribution had not been made in the bankruptcy of Pennsylvania Delivery Systems, Inc. By way of further denial, from a review of thc'Bankruptcy Court records, it appears that additional amounts were paid, MAY-C5-20u8 TUE 09,59 AM FAX NO. P. 04 9. Denied. At the time this discovery request was drafted and served, final distribution had not been made by the Trustee. The Trustee: has mailed additional payments to creditors subsegticnt to the date of service of request. 10. Denied. This averment constitutes a conelusiall of law which requires no responsive pleading. Ay way of frirther denial, at the time of the drafting and service of this request, Pennsylvania Delivery Systems, Jnc., enjoyed protection under the United States Bankruptcy Code. 11. Denied, This averment does not wke into account all of the payments made or to be made through the Batkruptcy Court. 13y way of further denial, Plaintiff has received payments in excess of the original principal balance. By way of further denial, the interest and :late charges may have accrued improperly during the pendency of tlhc bankruptcy. 12. Denied. The note and other documents speak fbr themselves. By way of further denial, Plaintiff seeks legal fees in excess of what is actual and necessary in this Case. 13. Denied. It is denied that a balance due, as set forth by Plaintiff; exists. .Doted: 'By: Respectfully submitted, CALDWELL & KEARNS David J. Lanza Attorney 1.D. #55782 3631 North Front Street Harrisburg. PA 17110 (717) 232-7661 Aftorne>,for Defen(Jant 08152-001132660 MAY-06-2008 TUE 09;59 AM FAX NO. P. 05 05/06/2008 10:18 7176918071 PAGE 09/99 in i uc, c.uuo r R i ua• w rn h RA NU. P.-03/08 ?RR.>tlF'?fC TYON The uadersigned hereby verifies that the facts set forth in the fomping doeum= are true and correct to the best of his/her knowledge, information arui belief and ftt tber states tMt false atatemauts herein arc made subject to the penalties of 18 Po-CS § 4944 relating to unworn falsification to authorities. Data. -..a ?. I?k I Q- Thomas R. Carbonaro MAY-06-2008 TUE 09:59 Al FAX NO. P. 06 f . CfERTI FICATE OF SERVICE I hereby certify that I have served a copy of the within d000InC:nt ibis day of May, 2008 on the following via facsimile and by sending a true and correct copy of the same via TIPS overnight mail, postage prepaid, addressed to: Brian H. Smith, Esquire LAMM RUBENSTONE, LI.C 3000 Horizon Boulevard, Suite 200 Trevose, PA 19053 CALDWE:LL & KEARNS By: r' MAY-06-2008 TUE 09:59 Al FAX NO. P. 07 David .1, Lanza Attorney I.D. 1155782 CALDWELL & KEARNS 3631 North From Street Harrisburg, PA 17110 (717) 232-7561 Attorney./n1, Deli-nela )t GE CAPITAL, SMALL BUSINESS FINANCE CORPORATION, Plaintiff vs. THOMAS R. CARBONARO, Defendant IN THE COURT 017 COMMON PLEAS O'1; CUMBERLAND COUNTY, PENNSYLVANIA NO. 07-2005 CIVIL.. ACTION DEFFNDAN'1''S ANSWER `I'O IN'1 FRROGATORI ES OF PLAINTIFF 1. (a) Plaintiff has failed to provide proper credit for all payments received, including final distribution by the Bankruptcy 'T'rustee. Plaintiffs claim also includes attorney fees which exceed actual and necessary charges and interest charges that accrued itnprop4rly during the pendency of the bankruptcy case. Other such facts which form the basis of denials of the Request for Admissions appear in the Answers to Plaintiff's Request for Admissions. (b) Not yet determined. Investigation is ongoing. Dated: By' -1? - David J. Lanza Attorney I.D. 455742 3631 North Front Street Harrisburg, PA 17110 (717) 232-7661 Attorney for i)efenrlctr-jt Respectfully submitted, CALDWELL & KEARNS }k ?1 ?, 08152-001/132666 MAY-06-2008 TUE 09:59 Al FAX NO. P. 08 r15/ 06/2008 19:IG 7176918071 PAGE 03/x9 i in i-uc-cum r K u3 i w rn _ r fix W P. 03/08 JTRMCATYAN The Lmderaigned hereby verifies that the Facts sat forth In the foregoing documenllt sre true and correct to the best of his/her iniowiodgt, information and belief and further states that false stawments herein arc made subject to the penalties of 18 paC,S § 4904 relating to UmWorn falsification to authorities. Detect: - ;?? Thomas R. Carbanara MAY-06-2008 TUE 09:59 AM FAX NO, P. 09 CERTIFICATE OF SERVICE I hereby certify that I have served a copy of the within document this day or May, 2008 on the following via facsimile and by sending a trite and correct copy of the same via UPS ovcmight mail, postage prepaid, addressed lo: Brian IL Smith, Esquire LAMM 'RUBENSTONE, LLC 3600 Horizon Boulevard, Suite 200 Trevose, Ply 19053) CALDWFLL VK.EARNS By:-?! t'?:' x ?; A , ? /,?7 LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. THOMAS R. CARBONARO Defendant. AFFIDAVIT Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 CIVIL ACTION Attilio R. Sassi, being duly sworn, deposes and says as follows: 1. I am duly authorized to make this Affidavit on behalf of the Plaintiff. 2. I am making this Affidavit upon my personal, firsthand knowledge of the subject matter of this Affidavit. 3. The subject loan, with Pennsylvania Delivery Systems, Inc. as Borrower, and guaranteed by Defendant, is currently in monetary default. 4. As a result of such default, and as of the time of the filing of Plaintiffs Complaint in this matter, the following amounts were due and owing to Plaintiff under the subject Note, Guarantee, and First Loan Modification Agreement: Principal $79,213.96 383148-1 Interest to 03/30/2007 $21,356.62 Late Charges $19,493.19 Appraisal $3,275.00 UCC Search $93.25 Legal $17,879.69 Total Amount Due $141,311.71 Per Diem $14.85 5. Pursuant to the terms of the subject Note and Guarantee, Plaintiff is permitted to collect attorney's fees and costs relating to enforcing the terms of the Note and Guarantee. 6. Since March 30, 2007, additional interest at the per diem rate of $14.85 has accrued and has continued to accrue in this matter, and, since the filing of the Complaint, additional attorney's fees and costs have accrued and continue to accrue. 7. To date, Defendant has failed and refused to remit the Plaintiff the amounts due and owing under the Loan. 8. All credits from monies paid to Plaintiff by and through the bankruptcy of Pennsylvania Delivery Systems, Inc. have been credited toward the amounts due and owing under the Loan. Attilio R. Sassi Sworn to and Subscribed ore me this 18 day of , 2008. 'Notary Pubdc rity C°,oypv?(SSKo)L'J ifs 5 51-3 11e-6 1;3 383148-1 JUL 2 2 2008 ------------------------ i lk LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 Attorneys for Plaintiff GE CAPITAL SMALL BUSINESS FINANCE COURT OF COMMON PLEAS CORPORATION CUMBERLAND COUNTY, PA Plaintiff, V. No. 07-2008 THOMAS R. CARBONARO CIVIL ACTION Defendant. CERTIFICATE OF SERVICE I, Brian H. Smith, Esquire, do hereby certify that on the date listed below, I served a true and correct copy of Plaintiff's Motion for Summary Judgment, and related Praecipe for Argument, by United States First Class Mail, postage pre-paid upon the following: David J. Lanza, Esquire Caldwell & Kearns 3631 North Front Street Harrisburg, PA 17110 LAMM RUBENSTONE LLC By: Z/?' Brian H. S rth, Esquire B? Attorneys for Plaintiffs Dated: 383148-1 C7 r`"' c=a t... 4? -- ? t;? .?-, ;`= ?W-- „? , teJ ,? sue ..,d-„ '?- ?. _ `?? ? f..F'? .? " ? LAMM RUBENSTONE LLC By: Brian H. Smith, Esquire Attorney I.D. No. 65627 3600 Horizon Boulevard, Suite 200 Trevose, Pennsylvania 19053 (215) 638-9330 GE CAPITAL SMALL BUSINESS FINANCE CORPORATION Plaintiff, V. THOMAS R. CARBONARO Defendant. Attorneys for Plaintiff COURT OF COMMON PLEAS CUMBERLAND COUNTY, PA No. 07-2008 CIVIL ACTION SUGGESTION OF BANKRUPTCY TO THE PROTHONOTARY: It is hereby suggested of record that the above-captioned Defendant, Thomas R. Carbonaro, filed a Petition under Chapter 7 of The United States Bankruptcy Code in The United States Bankruptcy Court for The Middle District of Pennsylvania on or about August 28, 2008, Docket No. 08-03103. As a result of such filing, the Automatic Stay of 1 I U.S.C. §362 prohibits the initiation or continuation of collection activity against the Defendant, including, but not limited to, the continuation of the instant case, absent relief from the Automatic Stay or Dismissal of Defendant's Bankruptcy. LAMM RUBENSTONE LLC i By: Brian H. Smith, Esquire Attorney for Plaintiff 388151-1 t ?. .. ? ? r r ??°: -: ?,? r,a?n ? _. r ? ?; ..a ?F ....5