The URL can be used to link to this page

Home My WebLink About07-5128 Christian S. Daghir, Esquire Etzweiler & Associates lOS North Front Street Harrisburg, PA 17101 (717) 2345600 Attorney for Plaintiff MID PENN BANK Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, FENNSYLVANIA NO. 07 - 5148 l~ivi (Tee CIVIL ACTION -LAW VS. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants CONFESSION OF JUDGMENT AND NOW, this 24th day of A~a~wst, 2007, Christian S. Daghir, Attorney for Plaintiff, pursuant to the warrant of attorney in the Promissory Note, a copy of which is attached to the Complaint in Confession of Judgmeirt, does hereby appear for and confess judgment in favor of the Plaintiff and against the Defendants as a result of the default as alleged in the Complaint as follows: Balance of principal as of August 15, 20(17 $120,000.0(1 Interest on unpaid balance at 9.5°k per awum from Apri126, 2007, to August 15, 2007 6,460.00 G:IWPDOC~CIV.FLEVnIPB-BanrLdR-W rii Late fees and charges Attorney collection fee TOTAL 562.15 12,646.00 $139,668.15 Christian S. ,Esquire Judgment in the amount of $139,668.15 entered as above ~ a7 , 2007. Prothono6 MID PENN BANK Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION -LAW 1. Plaintiff, Mid Penn Bank, is a banking corporation authorized to do business in the Commonwealth of Pennsylvania, with offices located at 349 Union Street, Millersburg, Pennsylvania. 2. Defendant, Cadmasters Group, Inc. is a Pennsylvania business corporation having its principal place of business at 4698 E. Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania 17050. 3. Defendants, Stanislaw Z. Sudol and Malgorzata Sudol are adult individuals residing at 931 Willcliff Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050. 4. On May 24, 2005, the Defendant, Cadmasters Group, Inc., executed and delivered a Promissory Note ("Note") to Plaintiff, Mid Penn Bank, whereby Defendant promised to pay to Plaintiff the principal amount of $120,000.00 together with interest thereon at the initial variable interest rate of 7 % in the manner provided thereon. A true and correct copy of the Note is attached hereto as Exhibit "A" and incorporated herein by reference. 5. The obligation evidenced by the Note is secured by a Commercial Security Agreement executed by Defendant, Cadmasters Group, Inc. dated May 24, 2005, obligating Cadmasters Group, Inc. to pay the sum of $120,000.00 to Mid Penn Bank, Plaintiff. A true and correct copy of the Commercial Security Agreement is attached hereto as Exhibit "B" and c:~wr~oocurv.r[.evroaeeccos.~.emao-aa~r«~..~ya incorporated herein by reference. 6. A Commercial Guaranty was signed by Defendant Stanislaw Z. Sudol on May 24, 2005. A true and correct copy of the Commercial Guaranty is attached hereto as Exhibit "C" and incorporated herein by reference. 7. A Commercial Guaranty was signed by Defendant Malgorzata Sudol on May 24, 2005. A true and correct copy of the Commercial Guaranty is attached hereto as Exhibit "D" and i~orporated herein by reference. 8. A Disclosure for Confession of Judgment was signed by Defendant Stanislaw Z. Sudol, President of Cadmasters Group Inc., on May 24, 2005. A true and correct copy of the Disclosure for Confession of Judgment is attached hereto as Exhibit "E" and incorporated herein by reference. 9. A Disclosure for Confession of Judgment was signed by Defendant Stanislaw Z. Sudol as an individual on May 24, 2005. A true and correct copy of the Disclosure for Confession of Judgment is attached hereto as Exhibit "F" and incorporated herein by reference. 10. A Disclosure for Confession of Judgment was signed by Defendant Malgorzata Sudol on May 24, 2005. A true and correct copy of the Disclosure for Confession of Judgment is attached hereto as Exhibit "G" and incorporated herein by reference. 11. The Defendants are in default of the provisions of the Note and Commercial Security Agreement for, in r ia, failure to make payment when due. 12. Said Note has not been assigned. 13. The Note and Commercial Guarantys contain confession of judgment provisions which permit Plaintiff to enter judgment against Defendants, Cadmasters Group Inc., Stanislaw Z. Sudol and Malgorzata Sudol, after default on the loan, without advance notice or an opportunity to defend against the entry of judgment. 14. The last payment made by Defendants was made on April 26, 2007, in the amount of $981.67. 15. All notice requirements have been fulfilled and the Note has been accelerated. 16. On August 15, 2007, the Loan was 167 days past due and the past due amount owed was $6,494.82. 17. The entire principal, interest, late charges and fees of the Note is now due and payable in full together with attorneys' fee and costs of suit. 18. The following is the computation of the balance due Plaintiff by Defendant: Balance of principal as of August 15, 2007 $120,000.00 Interest on unpaid balance at 9.5% per annum from January 23, 2007, to August 15, 2007 6,460.00 Late charges and fees 562.15 Attorney Collection Fee 12,646.00 TOTAL $139,668.15 19. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 20. The Note has not been assigned, and Plaintiff is the holder of the Note. 21. Judgment has not been entered against Defendants in any jurisdiction for their failure to make the required payments on the Note. G:\ W PDOCICN. PI.EV~9-Bam1gB! • W ril WHEREFORE; Plaintiffdemands judgment against Defendants in the sum of $139,668.15 plus interest until paid in full at the rate of 9.5% per annum together with attorneys' fee and all appropriate costs of suit. Dated: August ~, 2007 _~ Christian S. Daghir, E uire Supreme Court ID# 47741 105 N. Front Street Harrisburg, PA 17101 (717) 234-5600 G:\WP~DOC~C[V.PLEIA@B~Bnaha@-W d\ PROMISSORY NOTE Rsferencea fi the shaded area are for Lenders use only ,end do rwt Itrrtit the e~ppnr~Nny d tf~s doarrwrd >b any psrtlcular ban or item. Anv item above.contairdrto Etas been arNtted to text lenplh INrtitattxte. BOITOwar: Cadntasars Group, Ina (TU~k 28-1683466) Lender: Mid Penn dtnk 4686 East Trtndls Road CarpNe Pit Office AAitm~burg, PA 17060 4622 Carllds Pilo IYNt~tartidburg, PA 17086 Principal Amount: $120,000.00 .Initial Rate: 7.00096 Data of Note: May 24, 2005 PROMISE TO PAY. Cadrrtasters Group, Ina ("Borrovrar') prombss to Ply to MW Penn Bank ('Lender"), or order, b bwhtt mtxrey d tM Unlted Stars of America, on demand, the principal anauatt of One Hurtdrsd Twsrtty'Fhorasartd A001100 OfNMrs (~150,000.0g9 er so mtatdt p mty bs oubart~rtq, «' wfth Irta-at on the unpaid outsandktg principal babnce of sash advance. Interest shall ba trelaagaad from tM rise of each advance untll repayntsnt of each advance. PAYMENT. eorrowsr will paytrYs ban in full krtrnsdbtNy taper Lenders damsrd. aorrowsr wfq pay regular rrtoMhly payntenb of alt sccnasd uatpaid Mtsrsst dw as of sash paymsrtt date, be~nnklg .kaly 1, 2006, wlth alt subeagtaertt Mtersst payment b ~ rites on the strrts day of each nanth afar that Urtba otlterwias agreed or r«yukea by appliabie bw, payments wNl ba appnlad oast too any aocruatt tanpaW M than a prindpai; then to wry ~ratlo otof ~ arm~ud k~ianaat~raa~ovsr a~f 380 ~PBI~id by ~ o~~aar-drgpMnaipr~ abate beat; that b, by sppiyMg nwRlpiled by the achwl number of dsya the princ~al balance is ouatandinq. Borrower will pay Lender at Lender's address shown stow or at such o#ter place a Lender may daignats in wrftinq. YARIAaLE INTEREST RATE The Merest rate on title Nola b subject b change from time to time based an b an irtdepertdsnt index wttidt b the the Prkrte Rate as quobd in the Wan Street Joumel (the'irdetc'). The Index b not necsesarny the kawest rate dtargsd by Lender on iES bens. N tt-e Index becorrtes unavatbble durktg the term d this ben, Leader may tbaigrtate a aubstntab kdeac arty rtotce m Borrower. Lerxlsr wIN tell Borrower the current Index rate upon eonvwers request. The Merest refs cr>onge wB fat ocaar more strait than each month, on the drat bueirtess day d the . Borrower txdersmnde fret Larder may make tarts bases on Dater rates ss wee. Tlt. ktdex otxrertgy b 8.750% Afar annum. The interest raa to be applNd to the unpad prktdpal balance of fhb Nos win bs at a raa of 1.280 perarttrtge pokta over the bxhor, neuimtg In art ktlWl rate of 7.000% per annum. NOTICE: Urder no circxxrtstences wni the frtterest rate on fhb Note be more loan rte rttatckrtum rate snowed by applicable law. PREPAYMENT. Borrower agreBS that all tart tees and other prepaid flrtartce cha-ges are armed ~r as d the date d rite ben and win not be subject to refund upon early payment (vrttetter vdurttery or as a result d defau~, except as otherwbe required by law. Except for the foregohq, Borrower ~Y PaY wittaut l an or a portion d the anatmt owed earlier Chart n b due. Early payments wnl not, unless agreed to by Larder to writirtq, relieve Borrower d Borrower's obligation ~ continue th make payments d eccnied unpaid Merest Rather, early payments wni reduce the prktcipal balance . due. Borrower egress tat b send t.ertder payments marked 'pakt in fun', 'tNlttotat recotarse', or sirrtner Isnquage. B Borrower sends ouch a payment, Lender may axept it wltltout loekq any d Lender's rlpMa under fhb Note, and Borrower wNl rerrtsin obnpabd to pay any further amount owed to Lender. An written corttmtx>icatons cortcemtttg dsPubd amotanta, Irtcitadktg ar-Y cttaek or other payment ir>dtrramsrtt that ktdicatss that the payment ~rtstitutes 'payment in tun" d the amount owed or that b tendered with other oortditbrts or Umitations or ~ full satisfaction d a dbputed amour-t must be maned or dentrered to: Mid Penn Bank, Carlisle Price t)fnce, 4822 Carlisle Pnce, Medtankabcarp, PA 17055. LATE CHARGE it a regularly scheduled Interest payment b 15 days or more late, Borrower win be charged 10.000% of the regularly scftsdubd payment or 525.00, whkdtever b greater. H Lender demands payment d fhb hart, and Borrower does rat pay the ban in flan vrlMtkt 16 days alter Lenders dena.nd, Sorrovwr also will be charged emir 10.000'Y. of Ehe sum of the unpw pnndp.l plus aocrwd urtpakl Inw«t or 526.00, whbltwx b greater. INTEREST AFTER DEFAULT. Upon default, inGudirtg fanure b pay upon fktal maturity, Lender, at its option, may, it pertnntsd under appncebis law, Increase the varleble interest rate on this Note to 8.260 percentage points over the Index. The htterest rate wB rtat eaccsed the ntsxintum rate pemtitted br applicable law. H jtdgment fa entered in corutectlon with thb Note, Merest win continue to accrue on fhb Note. after judgment at the interest refs applicable to this Note at the time jtdgment b entered. DEFAULT. Each d the folbwing shan conatttttute an event d default ('Evert d Default) under this Note: Psymerat Dshu1L Borrower fans to make arty payment when due under fhb Note. Other Ddaulb. Borrower tans to comply with or to perform any other term, obligation, covenant a cartdinort corttaNted in this Note or In arty d the ratted doccarrtertts or to comply with or to perform arty teen, obligation, covenant or condition contained in arty other agreement between Lender 8rd Borrower. Fsbs sat«,tata. Arty warranty, represertatlon or staterrreertt made or iumistted to Larder by Borrower a on Borrowers behalf under this Note or the related documents b false or mbieadirtg in any materiel respect, eitlter now or at the tNne nude or furnbtted or becomes fete or rrdelsadhg at arty time thereafter. Insolvency. Ths diesolutbn a temtinatbn d Borrower's existence as a going buektess, the irtsclt-ency d Bonowsr, the appoktbrtsnt d a receiver for any part d eortower's property, arty assigrtmertt for the benefit d creritbra, arty type d credibr workout, or the aommencentent d any proceeding under arty benkntpt~y or insolvency laws by or agaktat Borrower. Creditor or ForNiturs Prot~edings. Corrvnencement d faedoetxe or forfeiture proceedings, whetter by judicial procreentnp, eeH-help, repossession or any other method, by any creditor d Borrower or by ant govenxrtertW apsrwy agaktst ant oonabrd e,cufig the loam. Thb irtdtades a ~ d arty d Borrowers accantts, ktcludir>D deposit accocxtts, with Larder. However, tae Event d Default Shan not apply n bare b a good faith dbptae br Borrower as to the vanity or reasonadeness d the dakn whk~t b the bash d the credtbr or forleihare proceadttg and it Borrower gives Lender written notce d the creditor or iorteittue proceedktg and deposits with Lender morales or a surely Ixartd for the creditor or forfeiture proceeditg, to an amount detennkted by Larder, in its sole discretion, ae beMtg an edequab reserve or bond for the dbpute. Events Affecting Guarantor. Arty d the preceding events occurs with respect to any t3uererrbr d arty d the gtdsbtednesa or arty Ousrattbr riles a becomes ktcorttpetent, or revokes or disputes the valk>ny d, or liabnity udder, arty gwranty d the ktdebtedrtesa evidenced by this Note. Change In Ownership. Arry change in ownership dtwenty-five percent (2596) or more d the cornrtton stack d Borrower. Adverse Change. A material adverse change occurs in Borrowers fktanciel condition, or Lender believes the prospect d payment or pertomtance d this Note b irttpaired. Insecurity. Lender in good faith believes itself hsecure. Exhibit "A" PROMISSORY NOTE Loan No: 500029913 (Continued) Ptage 2 LENDER'S RXiMB. Upon defauk, Lender may, after pivfnp such notices as required by applicable law, declare the etttfre unpaid principal balance on this Note and all aaxued unpaid interest trmedbtely due, and then Borrower wS pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to cotied thb Note N Borrower does not pay. Borrower wtil pay Lender that arraunt. This irxtludes, subject to any Ikrrits artier applicable law, Lender's et0omeys' tees and Larders lapel experrees, whether or not there b a lawsuit, including attorneys' tees, expenses for bardvuptoy procee~pa (indudktp efforts to modiy or vests ergr automatic stay or 6>hrrctlon), and appeab. If not pratdbited by epplicabl a law, Borrower also wtil pay any rrourt costs, ~ addkbn to ail other sums provided by law. JURY WAVER. Lander and Borrower hereby waive the rl~tt to any jury trial in any adtlon, proasdlny, or countardatm brought by elthar Lender or Borrower sglrMst tM other. GOVERNING LAW. Thb Note will bs yowrned by federal law applkable to Lender and, to the eodertt not prssnrPtsd by federal larr, the laws d the Cotnntornaeattlr of Pennsylvania without regard to ib anflicts of law provlsiorrs. Thb Nob has been adapted by Lender In the ConnrranvveNtlr of Pennsyhrattb. CHOICE Of VENUE. M there b a lawauk, Borrower agrees upon Lender's request to sutxnft m the jurisdiction of the courts d Cumberland County, Commarweattlr d Pennsylvania. RWHT OF SETOFF. To Cw extent permitted try applicable law, Lender reserves a right d setoff in atl Borrowers er~aotatb wkh Lander (whether dreokkp, aevkrps, or some other aorxwnq. Thb includes eN accorxrt Borrower taids jointly wkh someone ebe end ant exarrb Borrower may open in the future. However, thb dose not Include any IRA or Keogh acaounb, or any tvet accax~t for which aeblf would be prahbited by law. Borrower sutlarizes Lender, to the extent pemrittad by applicable law, to charge ar aebff aN sums owing on the indebtedness apekrot cry and ant such accounts, and, at Lenders option, b adn~nbtratlvely freeze ati such account tD albw Lender to protect Lender's charge and sebff rights provided b thb v+• COLLATERAL Borrower advrowbdpes fhb Note b secured by the toMowinp cotiaterai described in the securiy Instrtsnertt Ibbd herein: Inventory, ctmttl paper, acxounb, equipment and generel inbnpiblea described ~ a Canrttarcbl Securky Apreerrrerd dated Msy 24, 2006. LINE OF CREDIT. This Nate evidences a revaNinp Ifne of credit Advances under thb Note, as wsq as ~rectlrxrs for payment ham Borrowers aawunt, may be requested Drafty or to writing by Borrower or by an authorized person. Lender may, but need rat, reques that cep oral rec~eeb be cantimred M wrftbtp. Borrower. sprees to be tiebie for ati sums either: (A) advanced b arxxxdence with the instructions d an autlrorized perca or (e) credibd b any d Borrowers accaxrts with Lender. The unpaid principal bsYlras owing an fhb Note at any time may be evidaiced by endorsement on tltls Note or by Larders internal records, Nrdudinp daily compubr prrirt<-ou1e. Lsr>der wiN have no obNgaUcn to advarx» trrrrds uMer lftis Nots ff: (A) Borrower or any pusranlor b in default under the terms d tltls Note or arty agreement brat Borrower a any pusrarrlor has with Lender, kaludinp any apreerrrerK msde In connectlon with the sipnhp d fhb Note; (B) Borrovrar or any guarantor ceases doirro business or b kreclvent; (C) arty r has applied funds provided pua ~ to Urb Notfor purposes other a ed by Lender; ar ( Lerxbr good taNh beliavas(D) itself Insecure. PRIMARY DEPOSIT ACCOUNTS. Borrower agrees td open and rtrahtin b prhrary business depcek aocamt ("AccounCj with Lender so long as fhb Note has en Orrttendfnp balance or ben avsAsbtlky. k Borrower does not open a mekrtin the Accaxrt wNh Lander, Borrower autlarizes Lender tD iricresse the interest rate on this ban by one-quarter d one percent (0.25096). INCORPORATION OF COMMITMENT LETTER. The terms and conditlona d a Carrrnitrnent Letter dated May 12, 2005, between Lender, Borrower, end Guarantors, together wtih any nadificatkxrs and amendment, are hereby Incorporated into this Note es H the Camrtritrrrent Letter vwrre restated herein in it entirely. DEMAND LOAN MATURRY AND ANNUAL REVIEW. Thb ban b written on demerd with no speclHc msturfty date. Thb loan b subject to an annual review by Lender d financial infomraticn and ben performance. The t(rst annual review b scheduled for July 1, 2008. To iactikab the anrwa! review process, Lender may rme a matruky date an ka computer system or systems whk:h may appear on bitikp atatemenb or otirer nreikrps and ratk:ee to Borrower. The presence d a rrreiurity date on bNlinp staterrrent or other matikrgs and notlcee shall not be oor>eidered a waiver d Lenders right to demand lull repayment d the loan at anl+ time. . SUCCESSOR INTERESTS. The terms d thb-Note shall be birdinp upon Borrower, and upon Borrower's heirs, personal repreaentatlves, surx:eesors and assigns. and shall krure to the benefit d Lender and ks auxessore and assign. NOTiFY US OF INACCURATE INFORMATX)N WE REPORT TO CONSUMER Rt.PORTiI+IG AQENCIES. Please ratity us tl ws report any kraccurete information about your acooLnt(s) to a consumer reportlnp agency. Your wrktn rafts dascrk~g the specific innccurary(iee) should be sent to us at the totioMring address: Mid Penn Bsnk, Cadbb P1te Office, 4872 Cadfsle PtiCe, Med~aniceburg, PA 17065. GENERAL PROVISIONS. Thb Note b payable on demand. The inclusion d specific defauk provbior>s a right d Lender shah rat preckde terders right to declare payment d fhb Note on its demand. Lender may delay or forgo entactrrg any d its ripFas or remsdbs under fhb Nob without bekrp them. Borrower and arty other person who agns, guarantee or endorees tht Note, to the exbnt allowed by Mrw, waive preserrbrrent, dsmerd for payment, and notice d dbrarar. Upon any drsnpe to the terrr>s d fhb Note, and artless otlrerwbe expressy stated h writlrp, no party who signs fhb Nate, whetlter as mNcer, guarantor, aocorrrnadstion maker ar endorser, aheN be released from tiabNfty. AN sudr partles agree that Lender may renew or extend (repeatedly and for any length d tlme) thb low or release any peAy or guarantor or catisbral; or irnpsk, faN b realize upon or perfect Lender's security kderest in the cdlaterel; and take any other actlon dserrred neoeseary by Lender without the coneerd d or ratite b anyone. AA such parties abo agree that lender may modify thb loan without the consent d or notice >n anyone other then the party with whom the modiflcatlon b made. The oblipetlons artier lids Note are joint and several. N any portion d ihb Note b for arty reason deterrrrtned to be unenforceable, k wiq not affect the erdorceebilky d any ether provbions d this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORRES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK Of ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TMAE FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WfTH OR WITHOUT COMPWNT FlLED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCt~ BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (1096) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FNE HUNDRED DOLLARS (~00) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFlED BY AFFlDAVR SHALL BE SUFFICIfBVT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE T'O CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, B1JT SHALL CONTINUE FROM TiME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNT'S DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFES310N OF JUDGMENT AND STATES.THAT EITHER A REPRESENTATNE OF LENDER SPECIFlCALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL PROMISSORY NOTE Loan No: 500029913 (Continued) Page 3 PRK3R TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISK>NS OF THIS NOTE, INCWDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND R 18 INTENDED THAT THIS NOTE i8 AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: CADMASTERS GROUP, INC. .::;;;::....:: . n slaw ,Pros o Group, Inc. LAGER P110lwdi¢ W. EEEOG.006 Cap. IIrf~M Rn.nW YManR Ye. 1!//, 1R1f. N ~ Raaamd • ~A L~CFALPIWRFC 7RlOH MFEECIINE CGe.~MERCiAL SECURITY AGR~ ,RENT Retereraes b the shaded area are tar Lenders use only and do not Itmit the apptlo•bBHy d this docrxrwnt to any partiaiar loan ar Item. Anv item above contahing """' has. been omitted dduuee to text ler~plh IimhsdorMS. Grantor: CarNrautsrs Droop, Inc. (TiN: ~-7683466) Lender: Mid PWm sank 46Yi Esat TrkMM Road Carlisle PNes Office Mochsniaburg, PA 17050 '~ Carfbb PNoe Msdurfic:aup, PA 17066 TINS CdIA1wlERq/U. SECtlRfrY AGRF_EI~NT dated May ?A, 2006, b made and executed between Cadntssters Group, Ina ('Grantor') and fUkJ Penn Bank ("Larder'). GRANT OF Sf~'.1Jfri~Y gYTEREST. For valuable considsratlon, Grantor grants to Leader a security kHereet M Rhs Collateral >p secure the Indsbbdness arld eBrees that Lender shall have the right shred In this Agreement wkh rasped to the OoNf+tersl, In addltlon to aN other rights whidt Lender may haw by bw. COLLATERAL DEBGAtP'r10N. The word 'Cdlateral' as used In thb Agreemar-t rneens the fotiowirg described property, whether raw owned or hereafter acquired, wf>ether now existing or Hereafter arbirtg, and wherever kxxted, rn which Grantor b giv(ng to Lender a security kHenast for the payment d the Indebbdnesa and per(ortnance d aq other obligations under the Note and this Agreement: All Inventory, Cherttel Paper, Accounts, Equipment and General Mtanylbla In additlon, the word 'Collateral' also iraludes ell the fdkrwing, whether now owned or hereafter acquired, whether now exbfing or hereafter arbing, end wherever boated: (A) /UI ar;ceeslons, atbc~menb, accessories, boob, Parts, supplies. replawments d end additions to any d ~e ooMabral described hereto, whMher added nave or later. (B) All products end produce d any d the properly described h fhb Collateral section. dip siitiona~d~any~ prape~deacxibed in thb P,,olbteral aectlon~. yments, and ell other rights. arbinp art d a sale, lease, cor~efQvnent or other (p) Aq proceeds (indudfrtg insurarx~ proc~eede) from the sale. dsstnxtion, loss, or other dbposition d any d She property described in thb Collaterel section, and arms due from a third party who has damaged or destroyed the Collateral or from that parry's kutmsr, whether due to Judgment, sattiement or other process. (E~ Ati records and date rebtirp to any d~ ranoors right, title,intereat into ~whe~tt>a~r ink ore requifzem cre~ate~, moroftche, a eleclra-b media, togettrer malrNain, and process any aud~ records or data on electrono media. RIGHT OF SETOFF. To the extent perrrdlterf by applicable law, lender reserves a right d setoff b aN Cirenbr's aocourds wrih Larder (whether chedcirrg, savings, or some oti~er aocanq. Thb kaludes ati accourKs t3rantor holds johtly wqh someorw ales and aq aaaunts Grantor nay open in the fu4ue. However, ~ does rat include arty IRA or Keogh acxornts, or arty trust account for which setoff would be prattibited by law. Grardor authorizes tender, to the eucbnt pemtitted by applicable Isar, to charge or setoff all arxrr$ owkg on the kidebtedness epe~st any and aA each sa~unb, and, st Larders optlon, to edrr>iniatratively freeze au such acxaur~ to atiow Lender to pedect Larder's charge and aebff rights Provided in mb paragraph. GRANTOR'S REPRESENTATKNdS AND WARRANTIES WITH RESPECT TO THE COLLATERAL With respect b the Collateral, GrerMor represents and promises to lender that: Per(ectiort of Security hrterest. Grantor agrees to take whatever actors are requested by Lender b perfect and aor>dnue Lender's security kderest in the Collbterai. Upon request d Lender'. t3rantor wS detiver tD Larder arty and aN d the docurnenb evidsnchg or oorts~rtlng the CoUatsrai, and (irertlor wAl rob Larders krlergst upon any and all ohatbl paper and tnatrtmerrb H not detivered b Lender for poesessbn by l.endar. Thb is a corMirtubtN Security Agresnrsnt and wiN oontknre M affect awn though all or any part of the Irrdebtsxarees b paid M full and even though for a psrbd of iJms Grantor may rest bs Mdsbted to Lestdsr. Nofkes to Lender. Grantor wdl promptly ratify Lender in verging at Ler~rs address shown above (or such ottwr addresses as Larder may designate from time to time) prior to any (1) change to Granbrs Herne; (2) h Grantors assrsrad bwirwee rrme(s); (3) dtang. b the management d the Corporetlon Grantor; (4) flange b the authorized sigrwr(s); (5) change b Grantors prkaipal oltice address; (8) charge h Grantor's staN d orgenizmSOn; (7) cornerefon d Grantor m a new or dMererrt type d bwhess erNfly; or (8) dwnge to any other aspect d Grantor That directly or irtrtkectiy relates b any agreements between Grantor and Lender. No change b Granbrs Hems or state d organization witi take effect tatll after Lender has received rafts. No Violation. The executlon and delvery d Ihit; Agreement veil not voiate any law or agreement govemhp Grantor a to whoh Grantor b a party, and Ns certificate or artic~ea d incaporaticn and bylaws do not prohibit any teen or rarrdition d ttds Agreerrwnt. ErforosaWlity of Collatxd. To the extent the Collaterel rartsbts d accounts, chatbl paper, or pN1Ma1 Mangibbs, as defined by the UnNorm Commerolel Cade. the CoAabnd b entarceeble in accordance with its terms, b gerxane, end fiifly oampties wtih ati apploabb burs and regulations caraerning form. coolant and nbrxrer d preparation and execution, end ap psraans appearkp to be obligated on the Collateral haw authority and capacity m contract and are in fact obligated as they appear to be on the Collaterel. At the tine any account becon>as subject b a sacurNy merest in favor d lender, the account sherti be 8 good and valid aocotmt representing an undbpubd, bona fide irdebbdrwas karxred by the erxbunt debtor, for merchendiee held subject to delivery instructions or previously shipped or delhrered pureusnt to a czntract d sale, or for servbes prevlouely perforrtred by Grantor with a for the accent detftor. So brq ore fhb Agreerttent remains in effect, Grantor sheti rat, wtifaut Lender's prbr written consent. compromise, settle, adjust, or extend payment order or wtih regard bo any such Accaxris. There shell be no setoffs or cour~teroairre agsiret arty d the Cdbterel, and no agreement shati haw been made under which any deductions or dboants may be claimed concerning the Catiateral except those diadosed to Lender in writing. Location of tf» Cotiahrel. Except in the ordinary cause d Grenrors business. Grantor egress to keep the Collateral (or to the extent the Cobteral oonsbts d intangible property such as accaxrb or general krtsrgibles, ttre retards caraernkq the Catietarel) at Grantors address shown above or at such ottrer bcations as are euxreptabb to Lender. Upon t.arders request, Grerdor wpi delNer b lender in form satlefactory to Lender a schedule d real propertles and Colbteral locatior>s netting to Grantors aperetbns, hduding wtihart lirr~ibn the faUowk~ (1) all real Exhibit "B" C: MERClAL SECURITY AGREEME. Loan No: 500029913 (COntinut~d) Page 2 property Grantor owns «b purchashg; (2) aq real property Grenta b rerKhg or leaahg; (3) aN storege facgides Grent« owns, rent, leases, « uses: and (4) eq octet propertles where Cdlaterel b «may be located. Removal of the Oollateral. Except h the ordhary course d GrerNOr's bushes, hdudhg the sales d hventory, Grerrtor albil not rerrrove the Colateral from its exbthg kxatdon witlaut Lender's prbr wrgMn correerrt. To the extent tMt the Cagatrd carrels( d vehkdes, « other titled property, Grantor shag not take « permit any actlon whk~- would require appgcatlorr for cartlftcata d title for the vehlses outlde the Corrvrtonweslth d Pennsylvania, wghout Lender's prior wrtten consent. Grantor shag, whenever requested, adobe Lender d the exact location d the Colaterat. Trensectlons Involving CollatreL Excel t« inventory sold or atxount cdlected h the ordinary ratrrse d Grareor's txuahess, « as ottwnnbe provided for h fhb Agreement, Grantor shall not seq, offer to seM, «otherwbe transfer or di~Oae d the CdNtteral. vVhge Granbr t not h defauq under this Agreement, GrerMor may seq hventay, but only h the ordirtery catuae d qs busheaa end only to buyers who quality as a buyer h the ordhery refuse d bushes. A sale h the ordhary course d Grernors bushass does not hdude a trarnfer h pedal «total setbfeatlon d a debt a any bugs sale. Gtsnta shell not Pte, rtartgege, encumber « otherwtee permq the CaMatral to be subject b any Iles, seaxxityy Merest, encurr>tuartce, «ctbrge, ocher then the aectuNy htereet provided f« h thb Agreement, vrithout the prior written rrorrserN d Lender. This hdudea secwky Merest even ~ juNor h right to the aeourgy interests graaNed urxier fhb Agreemenrt. Ur>leee wahred by (.ender. aq proceeds from arty disposition d the Cagatsrel (tor whatever reason) shed be held h trust 1cr Lerxkr and shed not be canerYrtgied vrjlh any other funds; provkled however, this recarlenrent shed not constitute consent by Lender th any sale «other dbposition. Upon receipt, Grantor shop hms~stly deliver any such proceeds to Lender. TNIe. Grantor represents erxl warrants 7p Lender that Grantor holds .good end marketable tide tD the Colaterel, free and clear d ~ Bens and eraurnbrences except br the Ilan d thb Agreerrrent. fVo thanchg statement coverhg arty d the Ccgaterei b on ftle h any pubec oHbe other than those whbh retlect the security Merest created by fhb Agreement «to which Lender has specgkstgy carraented. Grantor shed defend Lender's rights h the Cagaterei egahst the clams aril demands d ell ocher persons. Regatta and gAakttertemx. Grantor agrees to keep and mehtain, and to cause others to keep and makrth, the Colaterel h good order, repair and condgbn at aq three whge this Agreement remeha h effect. Grantor further agrees m pay when due aq datms for work done on, «servlxis rendered « meterW famished h cornectlon with the Colaterel so that no lien « encurrrbrarae may ever attach to « be fged aganst the Cdieterel. Inepsctlon of Collatarsl. Lender and Lender's designated representatives and agents shag have the right at aq reaaoneble tht~ to examine and hapect the Cagaterel wherever located. Taxes, A::esNrrents and Llano. Grantor wql pay when due all taxes, assessments and pens upon the Colateral, its use «operetion, upon ihb Agreerrwrtt, upon any proniesory note «notea evidenchg the IrxlebMdr>asa, «upon any d the ether Retabd Occurrent. Grantor may witlwtold any such payment « nray elect to contest any pen if Grantor b h good fagh corrdtrctlrrg an appropriate proceedhg 1D o0ntest the obligation to pay and so kxtp as Lerxlers Merest h the Collateral b not jeopardized h Lena sole ophfon. ff the Cogatrel b subjected th a pen which b not dbcharged wgtdn flfteen (15) days, QreMOr shell deposR with Lender cash, a sutflcieM cArporate sun~ty bond « otlmr security aedbfactory to Lender h an amount adequate tD provide for the dbcherge d the Itr- plus any Merest, costs, attarreys' fees «other that could accrue as a result d faeobsure « sale d the Colateral. In any contest Orerrta shed defend itself and Lender and shed satbfy any chat adverse lodgment before errbresment agehst the Colaterel. Grantor shed name Lender as an additlorral obtlgee under any surety band hrmttred h the contest proceectlrrgs. Grantor further agrees to fumbh Lender with evidence that such taxes, assessments, and govemnrsntl and other charges have been pall h full and h a tknely manner. Grantor may witlrhold any such payment «mey elect to carr<est any pan q Grantor b h good faith canductlng an appropriate proceeding to carrtest the obligation m pay end so kxrg as Lender's Merest in the Cdlataral b not jeopardized. Comply wHh <iowrnmentai Raqutrements. Grantor shed ~Y promptly with aq .laws, ordirrerrrts, rules and regulatlorrs d aq goverrarrentl atrltroritles, rrow «hereafter in effect, applicable to the ownership, productlon, dbposglon, «uae d the Cagaterel, hrtltrdkrg aq laws « regrdatlor-s rolstlrg b ttre undue erosion-d higtdy-erodible land « relating to the conver:rion d rretlarrds for the productbn d an at~al product «cortnradity. Granbr may contest h good fagh any such law, ordinance «reguktton and wghhold compHerrce durkp arty proceeding, hdudhg appropriat appeals, so kxrg as Lender's Interest h the Colateral, h Lenders opMon, b rat jsoperdized. Ha=ardous Substances. Grantor represents and warrants that the Colateral never has been, and never wql be so kxrg as this Agreernerrt remains a pen an the Colateral, used h violation d any Erntronmerrtal Laws «tor the gerteretlar, m~rreacdrre, storage, trarreportation, treatrrrent, disposal, release «threatened release d any Hazardous SubsUrrrce. The represerrtatlons and warranties carrtined harsh are based on Grenbr's due dgigence h hveatlgstirrg the Cogaterei for Hazardous Subaiancea. Grantor hereby (1) releases and wshres arty futue clahre aganst Lender for trdermity « contribution h the event Granter becomes Ilable for deanup « other cat under any ErnrirorurrartoA Laws, and (~ agrees to trrderturtly and hold lrerrrrfess Lender against arty and aq cblrrrs and k>sses reaulthg from a breach d thb provision d fhb Agre6rtrent Thb obligation to hdenvrgy shag survive the payment d the Indebtedness end the satbfactbn d this Agreement. ggintenance of Casualty Insurance. Grantor shag procure and mafrttain aq rbits hsurarae, hdrxtlng without lingatlon fire, ((raft and liebgily coverage. together with such caber haurance as Lender may require with respect to the Collateral, h tam, amounts, coverages and bast reasonably acceptable to lender and issued by a ^Y a companies reasonably acceptable to Lender. Grantor, upon request d Lerxkr, wql delver m Lerxier from thre th time the polkties «certgicates d hsurance h tam satbf~tory ro Lender, hdtxHng atlpttaaatlorrs that coverages wa net be caraeiled «dhrhbhed witiaut at least ten {t0) days' prbr wrtten ratios to Lender and rat hcdtrdNrg any dtealatrrer d the hearer's pebgity for failure to give such a rrotlce. Each hsurance pdicy also shag hdude an endorsement providkrg that coverage h favor d terxler wa rat be hpaked h arty way ~ any act, omission or default d Grent« «any other person. In connection wqh aq pogcies covering easels h which Lander holds or b offered a secrugy Merest, Grent« wg provi~ Leader with such k>ss payable «other errdorssnrertb ss Lender may requke. B Grantor at any time taps to obtain « meMain ary haurance as required under thb Agreement, Lender may {but shatl rat be obligated b) abteh such hsurarx~ as Lender deems appropriate, hcludhg if Lender so chooses "shpt Merest hsurence; which wa cover ony Lenders Merest h the Colateral. Appiicatlon of Insurance Proceeds. Grerrtor shall promptly notify Lender d arty loss « damage to the Callalerel, whether «not such casualty or bas b covered by insurance. Lander may make proof d loss k Grantor taps to do so withh rtfteen (1!5) days d the casualty. All proceeds d any haurence on the Colateral, lraludhg axrued proceeds thereon, atrell be held by Lender as part d the CaNstral. H Lender corrserrt 1o repair « repl~rrrent d the damaged « destroyed Cdlateral, Lender shop, upon aatiatactory proof d eogxrRrdtiue, pay « teirrrbruse Grarroor from the proceeds for the reeearrable cost d repair « restoration. M tender dose not consent to repair « replacerrrent d the Cdietrai, Lender shed stein a sufficient amotu-t d the proceeds to pay all d the Indebtedness, and shed pay the tx~rce to Grarrbr. Any proceeds which have rat been disbursed wtihh six (6) rrtontits after their receipt and which Grerrta has not comrtritted to the repair a restoretion d the CoNatral strap be used m prepay the Indebtedness. Insurarroe Rte. Lender may require Grant« to nralrtkr with Lender reserves for payment d hsurence prerrdurrrs, which nerves shed be crested by morrtlrly payment from Grants d a stun estimated by Lender to be suNicierrt to produce, at least fifteen (15) days before the premium due date, anarmfs at least equal to the hsurence prerniruns to be paid. H tgtesrr (15) days before payment b due, the reserve funds are insufFicierrt, Grantor shag upon demand prey arty deflcieray to Lender. The reserve funds shed be held by Lender as a general deposit and shad .,OMMERCIAL SECURITY AGREE. .NT Loan No: 500029918 (Continued) Page 3 cxxrstihrte anon-interest-bsariny account which I~nder may satbN by payment d the insuran~st prartdurtis required ilo be paid by Grar~or as they become due. Lender does not hold the reserve hxxls in trust f« Grent«, and Lsrrdsr b not the agerrt d Grenbr for payment d the insurance premkxrrs required to be paid by Grantor. The respor-sibBffy for the payment d premiums stxrtl remain Grantors sole resporrsibNffy. Inseranw Reports. Grantor, upon request d I.ender, shill tumbh 1lo gender reports on each exieting pdky d fnss showing such irdormation as tender may reasarably request kxduding the toNowkrg: (t) the r>arns d >ha ktsurer; (Y) Ute tiNts trteured; (3) the amount d the poky; (4) the properly insured; (5) the then current value on the bash d wtdr;h insurance h~ been obtained and ttte martrter d detemiktirp that value; and (6) the expiration dots d the policy. In additlon, Grantor shah upon request by Lsndsr (however nil more often tlmrt arstualty) have an hdependant appraiser satbbctory td Lender debrmine, as apptlcable, the cash vedue «replacerrrerrtcost dtheCollateral. Finanairq t3tatenterrts. Grantor authorizes Lender m file a UCC financing staterrrerrt, «atterrraUvey, a copy d this Agreerrwnt to perfect Lender's security interest. At t.errders request, t3rent« edditlonally agrees to sign aN dher docurrrenis that are r~.ssary to perbct, protect, and ranUrrue Lender's security Merest in the Property. Grantor win pay ail tErrg tees, title transfer fee:. and other fees and coats krvclved artless prahibHed by taw « unless Lender b required by law to pay such fees and costs. Grantor ~ appoMs Lender to sxecub doaxrterds necessary to transfer title ff there b a detauff. Lender may iNe a copy d this Agreement as a f statement. ff Grantor' Grerk~or's name or address, «ihe name «address d any person granting a security Mrbrest under fhb Agreement , GrerNor wtll promptly notlfy the Lender d such drange. GRANTOR'S RKiHT TO POS~ES910N AND TO COLLECT ACCOUNT'S. UraN default and except es ottrenNbe provided below wish respect to acxxxrrts, Grantor may have possession d the tangibb personal property and beneficial use d aN Uw Collaterd aril may ass ff M arty lawful mercer rat ineansbwnis t with fhb Apreenrent « the Related I~cumerna, provided tf~t GranOOra right to poseeeeion and bensAcisJ use shall not apply to arry Collaterel where poseeealon d the CoNateral by Lender b squired by law to perfect Lender's secrulty interest in such Cdbteral. UMN otherwbe nodded by Lender, Grantor may caNsct any d the CoNd<erel rxxtsbtkrg d arxounts. At arty time and even though no DekuR erdsts, Lerxbr may exarcbe its rights to «~Nect ttw arx:our><s end tp notify account debtors to make paymerds dtrecUy to Lender kx eippYcaUorr to ttte krdsbfedness. N Lender at any. time has possession d any CaMaierel, whether before « after Default, Lender :hatl be desmec! tD have exerrbed reasonable care Nt the custody and preservation d the Collbterel ff Lender takes such action f« that purpose es Grantor ahatl request «es L.ertder, h l:srxlers sole dSCreUon, shah deers appropriate under the circrxrs~uxres, but failure to horar any request by Grantor shad rat d itseff be deemed io be a trdlure in exercise reasonable care. Lsrrder st-aN not be required to take arty steps necessary to preserve any rights in the Catlaterel agekwt prior partlee, nor to protect, preserve « meMain any security Merest given to secure the Indebtedness. LENDER'S EXPENDITURES. ff any action «proceeding b cortunenced that would materially affect Lenders Merest in the Collateral «ff Grantor fats to comply with any provision d this Agreement «any Related Documerds, including but not limited to Gnu-tora taikre b rUsrtharge «pay when due any amounts Grantor b required to dbrtharge «pay under fhb A~eenrera «any Rebted f~currrertts, Lender on Granbr'a behatl-may (but stratl rat be obligated to) take any action that Lsrxbr deems appropribte, including but not IiMted to cUsc~targirtg « paying aU taxes, pens, security Merests, encurrtbrences and other daMa, et any tkne levied « placed on the Capaterel and paykrg ap costs for krsrxtrg, mahtak>kp and preserving the Cdlalerel. AN such expendNures incurred « paid by Larder t« such purposes wig then bear Merest ell the rate charged under the Note from the dale Incurred « paid by Lander to the date d repayment by Orent«. All such ewes wpl becorrw s pert d the Irtdeblsdrtses and, ~ Leader's aptfon, wpl (A) be payable on demand; (B) be added to the balance d the Note and be apportioned among and be payebb with any inampment payments m become•due during eltlter (1) the term d any applicable insurance polcy; « (2) the rernekrkrg tens d the Note; « (C) be treated es a txitloon ~ditlon to al ottrer rights remedy to wh~hNl,ender maybe entitledutt. wNl secure payment d >ftase amourrts. Such right shall be in DEFAULT. Ddauft wig oxur ff payment in fuN b not made immediately when due. RIGHTS AND REMEDIES ON DEFAULT. M Defauff occurs under thb Agreement, at any Urns thereafter, Lender shah have ap the rights d a secured party urxbr the Pervisylvanfa Uniform Commercial Code. In additlon and without limitatkn, lender may exerolee any one « more d the fallowing rights and rernediea: Accelerate IndsbUdrtsss. Lender may declare the entire Indebtedness, including any prepayment penalty which Grantor would be requred to pay, Irtxrrediately due and payable, wfflaut notice d any kind to Grant. Assemble Collateral. Lender may require Grants in deliver to Lender alt «any portkn d the Collaterel and any and ap certffkates d title and ottrer documents relatkrg to the Collaterel. Lender may require Grantor to aeserriWe the Colleterel and make ff avaibbb to Larder at a place to be designated by Lender. Larder also shed have fuN power to enter upon the property d Grant to take possession of and rsnave the Cafbterel. ff the Capsteral cxxxeins other goods not covered by this Agreement at the tune d reposaessbn, Grent« agrees Lender may take such other goods, provided Drat Lender makes reasonable efforts to return them to Grantor after repossession. 8eN the Collatarai. L.erxbr shall have fug power to sell, lease, transfer, «otherwbe deal with the Collaterel «proceede 1ltereof in Leader's own name « ttrat d Grant. Lender may rep the Collaterel at public aucU«i « private sale. Ur~lesa the Capedersl tttreabrre >q decline speedily in value or b d a type customarNy sold on a recognized market, lender wNl give Grant, and other persons as squired by law, reas«rabb noUcre d the tines and place d arty publk sale, or the tkne after which arty private sale «any other clsposidan d the Copar3erd b to be made. However, ra ratke need be provided to arty person who, after Event d Default oxurs, enters &rb and autlierrUcabs an agreernertt waiving that person's right to noUftcaUon d sale. Ths regclrerrients d reasonable notice shah be met ff such ratite b given at bast tan (t0) days before fife tlrne of the sale « dispoaitlon. All expenses relating to the dbposffkn d the Collaterel, irxUud~g witliod prr~aticn the expenses d retekhg, hokpng, insurYrg, w ~t at the Note rate irom date dale sexpe~ndfur-tA rep~eid. the Irrdebtednesss secured by this AgreemenK and efmA be payable on demand, protect end preservCopaterel, to operate Use Capeteral Nprng foreclosure «~sab~and >b cdlect~ ~ from thethe CoNa~ feral and apply the proceeds, over and above the cost d the receivership, against the irdebbdrtess. The receiver may serve wffhout bond ff pemNtbd by Iaw. Larders right to the appointrnent d a receNer shah exist whether « not the apparent value d the Colbteral s~rceeds the Irrdebtednese by a aubstantbl amourrt. Errrpbyment by Lender shall rat dbquelHy a person horn serving as a rerreiver. Collect Revenues, Apply Accounts. Lender, either itself «through a receiver, may coped the payrtxrnls, rents, trxxxne, and revenues from the Collaterel. Lender may at any time in Lenders dbcreUon transfer arty Collateral Mo lender's own name «that d Lenders ranrNtee and receive tfie payments, rents, income, end revenues therefrom end hold the same as security f« the thdebtednees « apply k to payment d the Irxbbtedness in such order d preference as Lender may determine. Insofar as the CopaNral corx~bb d aocourrts, general krtarrgiblas, insurance pdkies, inetnxnerrts, chattel paper, chores h action, « sMNar properly, !.ender may demand, coNect, receipt t, settb, camprorrree, adjust, sue f«, f«eckse, « realize on Use Collateral as Lender may detenr~e, whether « not Indebtedrrees « Collateral b then due. F« these purposes, Lender may, on behaB d and in the name d Grant, receive, open and dispose d map addressed to Grardor; change any address to rrhkh rrxW and payments are to be aerrt; and endorse notes, checks, drafts, m«rey orders, documents d title. instrtsrwrrss and items pertaiNng to payment, sh~ment, «storage d any Collateral. To facNttate collection, Lender may notify account debtors and adigors on any Collateral in make payments directly >,b Lender. C~ IAERCiAL SECURITY AGREEME Loan No: 500029913 (COntlt~ued) saga 4 , Obtain DeBchrrcy. H Lender ctaoses to seR any or sA d the Cotiatrel, Lender may obtatn a judpmerrt agaMst Grantor for any defalerw7r remakthg an the Irtde~nesa due to Lender after applicatbn d ap amormt received from the exercise d the right provktd ht this Agr'eerrtertt. Grantor shaft be liable for a deficiency even if the transaction described Nt this aubser.Mlon is a safe d ac:courHs or chattel paper. Other RIgMe and Aarrtadla. Lender shell have ati the rights and rentadies d a secured creditor under tine provisiars d the Uniform Corrxrierciai Cade, as may be amerxled from time to tkrw. In addition, Len~r shall have and may exercise any or aN other rights and remedies it may have avadade at law, in equitlr, or otherwise. Ehctlon of Renrades. Excx~pt as may be prohibited by applicable law, aA d Leader's right and remedies, whetlter evidenced by this Agreemenn, the Reisted Documents, or by any other writfig, shall be currarlatNe and may be exercised shgulery or concurrently. Election by terKNsr to pursue any remedy shati not exclude pureuit d any other remedy, and an election to make expendibrros or b take action to perform an obligation d Grantor under this Agreement, after Grantor's failure tD perform, shati not affect Lender's right to declare a default and exercise Ifs remedies. MSCELLANEOI,JS PROVISIONS. The fdk~akrg miscellaneous proviskx>s are a part d this A~eement Amarxbttent. This Agreement, together with any Related Docrxnent, constibites the entfre urrderatndkp and agraemerd d the parties as to the matters set forth h this Agreement. fVo aReration d or amendment to ibis ROreement shah be effectlve uNesa gNen m writing end signed by the party or parties sough to be charged or bound by the aftretbn or amerxlntertt. Attorneys' Feee; E~gferrees. Grantor a~ees m pay upon demerxl all d Lender's costs and expenses. g Lerxlers attornaya' fees and Lenders legal exparsfea, incurred in connection with the enforcement d this Agreement. Lender may irks or pay eorrreorte elq to hasp enforce this Agreement, and Grantor shell pay the cost and sxperuea d such erdorcernertt Costs and eorpertses hahrde Center's aitomeys' fees and legal expenses whether or rest there is a lawsutt, h~duding attorneys' fees and legs) expenses for baNrnrptoy procaedYtpe (iraltdkg efforts to ~ and such ad~d(tlorml few as~may be directedJ~ ~co nt ~ ~~~ ~t~udpment ooilectlon services. Grantor also shall pay all curt Fleadkrgs. Caption heading in this Agreement are for convenience purposes only and are rat to be used to ktterpret or def~e the provtkxts d this Agreement. t,.ovemktg Law. This Agreenrerrt will ba governed try federal law apls to Lander and, to the a~ctertt not prearnptd by federal law, tits laws of the Commanweallh of Pennsylv~arla witiwut regard to Its gn8lcts of taw provisions. This Agresmertt free bean aoapbd by Lander In Ure CemrnonwaaMh of Pennsyhranle Choiq of Vanua If there is a lawsuit, Grantor agrees upon Lender's request to submit th the JurfadkKlon d the courts d Cumberland County, Commornveaith of PenrreyNania. No Walwr by Lender. Lender shall not be deemed to have waNed any rights under this Agreemenrt urAess such weNer is given in writing and signed by Lender. No deNry or omissbn on the part d Lender in exercising any rigfN shell operate as a waiver d such right or any other rlgltt. A waiver by Lender d e provision d this Agreement shell not prejudk:e or oortstitut a waNer d Lenders right otherwise to denbnd strict compliance wNh ttist provision or any other provision d thb Agreerr>ant No prbr waNer bN Lender, nor any course d deatirtg between Lender and Grantor, sheti tansfNrrte a waNer d any d Lender's rights or d any d Grantors ob8gstione as to any tutors tra-reactlons. VVttertever the consent d Lerxier b requred under this /lgreerrtent, the grantfrg d such consent by Lender in any instnce steel not canatihroe consent to autx3equent instances where such rxrnsent Is required and in all cases such cxxrsent may be granted or withheld fn the sole d~credon d Lender. NotMxs. Unless otherwise provided by applicable law, any ratlce required to be gNen under this Agreement shell be gNen in writing, and shag be effective when actually delNered, when actually received by tetefncalnrils (unless otirerrvise required by law), when depgitd with a natkrnatiy recognized overnight courier, ar, H ntaNed, when depoeked in the United States mail, as flret class, certified or registered maY Postage prepaid, directed to the addresses shown near the begtrxr~g d iht Apreenrent. Arty party may Rs address for notices under this Agreement by gluing tonrrel written ncafkte to the other parties, specifying tltat the purpose d the radce b b cfrarpe the party's address. Far notice purposes, Grantor agrees to keep Lander inforrtrerf st ell tortes d Grantors ctment address. Unless otherwbe provided by appHceble law, M titers is Hare than one Grantor, arty ratite given by Lender to any Grantor is deemed b be notice gNen >n aA Grerriors. Addttfonal Authorirstions. Grantor hereby authorizes Lender, with full power d substitution, to execute in Grantors r-eurre any document necessary b perfect, amend, or to continue the securty Interest granted in this Agreement or to demand temttnatbn d fAMps d other secured parties and, wiltaut further authorization from Grenbr, to fNe a carbon, photographic or other reproduction d any 1Mterrci~p statement or d this Agreement for use es a ttnerxting sttmerd. Grareor wNi rekrrburs® Lender for ati experrees for the pefecton and the corttlnrration d the perfection d Lender's security interest ~ the Co6ateral. It is understood and agreed that any exercise of this autitorhatlon by Lender shall be on behalf d Cartier and not an behalf d Grantor. Lender is Hat an agent or fiduciary d Grantor. However, in exerciskp the authorizzation granted hereby, Lender shall exerotse r~sanable caution end pnrderxs3 and Lender shall keep tuM end accurete retch d eN actions, receipt and disbursements. 8everablUty. B a court d cxxnpetent Jurtdk:tiort f>rxJs any provision d this Agreement to be Nlegel, invalkl, or urtenfagable as in any circumstance, that lg shall not melts tits dfending provision Ylegal, invalid, or rnerdorceable as to arty other circrmstartce. H teaeihie, the offending provision sheti be canaidered modified so that it becomes legal, valid and sr-forceabls. H the offendtp provision carxtot be so modHled, K shati txa ransklered deleted from this AgreernerrL Unless otherwise requhed by law, the AlepaNty, invatkfily, or urrerHorceebAky deny P~~ d this Agreement sheti Hat affect the legality, vaiklNy or enforiy d any other provision d thb Agreement. Srkxpsor tnterssts. The thmre d this Agreement shaA be tendMrg upon Grer-tor, and upon Grantors heirs, personal represerdatNea, suxeesore, and assigns, and shall be enforceable by Lender and ifs successors and assigns. Survival of Faprasenhtlons and Warrarrtis. /W representations, warrenties, and agreement made by Grantor in this Agreement shall survive the execution and delivery d this Agreement, shag be cattlnuirtg to nature. and shall rennin in fug force and effect urrtti such lima as Grantor's Indebtedness shell be paid in full. Time Is of the Essence Terse is d the essence in tits peAorrr>ance d this Agreement Waive Jury. All partNe to ffib Agreement hereby wales tits rl~t to any Jury trial In wry action, proaading, or countarctNm brought by ~Y WHY against arty other party DERNITIONS. The totiowtng rxpitlized words and terms ahati have the following rrteardrps when used b tft~ Agreement Urtiees specifk:aMy shed to the contrary, all refererrCes to doNar anarmts sfteN mean anarxtts M twful money d the thrited States d America. Words and terms used b the akrgrrler stteN include the plural, end the plurel sheti include the skrgrrlar, as the carrtext may require. Words and tans rat otltervvise defined in this Agreement shag have the meanings attributed to such terms in the UnHonn Cadrtarciel Cede: Agreement. The wont 'Agreement' mear>s this Conrnercie! Securky Agreement, as this Convrrerciel Security Agreement may ba amended or COMMERCIAL SECURITY AGREE. .NT Login No: 500029913 (Continued) Page 5 modified from time to time, together with all exhibits and schedules attached to this Conxneroial Security Agreement from time to time. Borrower. The word "Borrower" means Cadmasters Group, Inc. and includes all co-signers and co-mekers signing the Note. Collateral. The word 'Collateral' means all of Grantor's right, tide and interest in and to all the Collateral as described in the Ccllateref Description section of this Agreement. Default. The word "Default" means the Default set forth in this Agreement in the section titled "Default". Environmental Laws. The words "Environmental Laws" mean any end all state, federal and local statutes, regulations and ordinances relating to the protection of human heaNh or the environment, including without limitation the Comprehensive Environrr~ental Response, Compensator, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund AmerxJmerrts and ReauUwrtzation Act of 1988, Pub. L. No. 99.499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulatory; adopted pursuant thereto. Event of Dehult. The words "Event of Default" mean any of the events of default set forth in this Agreement in the default section of this Agreement. Grantor. The word "Grantor" means Cadmasters Group, Inc.. Hszardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, crorx~ntration or physksl, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperty used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "HazaNous Substances" are used in their very broadest sense and include wtthout limitaton any and all hazardous or toxic substances, materiels or waste as defoed by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by-products or arty fraction thereof and asbestos. Indebtedness. The word "Indebtedness" means the indebtedness evklenced by the Note or Related Documents, Gicludog all principal and oterest together with ail other indebtedness and costs and expenses for whoh Grantor is responsible under this Agreement or under any of the Related Documents. The liens and security Interests created pursuant to this Agreement covering the indebtedness whoh may be created in the future shall relate back to the date of this Agreement. Lender. The word "Lender" means Mkt Penn Bank, its successors and assigns. Note. The word "Note" means the Note executed by Cadmasters Group, Inc. in the principal amount ~ $120,000.00 dated May 24, 2005, together with all renewals of, extensions of, modificatkxu of, refinancings of, consolidations of, and substitutions for the note or credit agreemerrt. Property. The word "Property" means all of Grantor's right, titre and interest in and to all the Property as described in the "Collateral Description" section of this Agreement. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, envirortntental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, cdlateral mortgages, and alt other insfruments, agreements and docum~ts, whether now or hereafter existing, executed in connector with the Indebtedness. GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED MAY 24, 2005. THIS AGREEMENT IS GIVEN UNDER SEAL AND R IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CADMASTERS GROUP, INC. ~i:::i::ii':: ~: " ?v:i:i:::: i. ':.::i:. :}ii;+~•: iiiii;: w:::::. ~:. ~:::.~ i:. .. . .: is iY:'•.. Group, Inc. U1tER MIO I.~d,q. W. [II60"."01 Cap,. IYM1M F"","W Mu1"r, "n. 1N7, 9001 M M1"IY IWa,rM. • M LiCflLLPUl16Po TR70"1 MFi6C-lNE COMMERCIAL GUARANI . x ~ b...~ :~.. ,.R .. _. _ ._ References b the stxded ~ item above sconbkang ~'~has been orr~ter~d~~~t ~t Ihnitatlonato any partlculer ben or item. BOROwer: Cadtnalsrs Graup, Irrc. (TIN: 25-10A848a) Lender: fif~d Psnn Bank ~6 EsdTrindls Road Ctxtisis Pots Offlce fiAedtarfkaburg, PA 17050 4d22 Pgoe Mettry, PA 17055 Guaranf~r: sprdslaw z 13udo1(SSN: ~e-ea•o7sn 16Yd Esst TrMdis Road ~flstdtartkwbx>i, PA 17050 ' /NiAOUNTr OF GUARANTY. TMs fs a puararttY of payment of the Note, Including without Umltatlon the prktcipal Nob amount of Ora Hundred Twenty TFtousand ~ 001100 Ddiars (=1 X0,000.00). GUARANTY. For g00d and Vakrabt0 consideration, Stantakw Z Sttdol ('GuarafltOr') abeokrtely and w~f- gttararttess and P to pay b ftffld POrm Bank ('Lender") or ib order, on demand, in Mlfa1 tender of Ets tArdbd States of America, tFts Ytalebledness (as Eat term b defkted f»fow) O< Group, inc. ('Borrower') t0 Lender On the terms and COndltiOfa set forth M tt11e Gtnlanty. MA)~AUM LUIBILI7'Y. The nla7drrexfl (lability d Guarantor tYlder this Guaranty shag not eXCAed at any ore 1NTIe the amount d the IrxMbtedrass descxibsd herein, Plus all costs and expenses d (A) arrforcerrierrt d this Guaranty and (B) cdlectbn and sale d any collateral securkp this f3wraMy. Tree above limibtion an IiebDity is not a restriction « r raw ~ irawm Guarartor, sir ~ Dui ~ . If Lender presently holds area or mare guarantied, baker b the conUary) affect or knnlictab any each other guarantied. Guaranta's be curtwlative. This Guaranty shah not (unless speciticaYy P IkibNSy will be Guarantor's aggregab HeWity under the temrs d this Guaranty and erry such other untenrrlrtated gimrartties. INpNESS GWARANTEED. The Irdebtedr>asa guaranteed by this Guarerdy inductee the Note, inducting (a) all prkrdpal, (b) all iribrest, (c) ell late (d) au kx~n fees and kran charges, and (e) eN coNection costs and e~cpera~ relating to the Note or to any cdiebral for the Note. Cotiecibn costs and e~cperaes kx~ude without li~tetbn aA d Lerdat's attorneys' fees. DURATION OF GUARANTY. This Guaranty wNl take effect received by Lender without the neaasity d arry actx~pbnce by Lender, or any notice to Guarantor or in Borrower, and wi5 continue in fuY farce until aN I in ~, Releasesh~d any other pumanbr a termk~fon~d ~ otiar guarantyG~ad tire other obligations ands' this Guaranty shah have been perfortrad Indeblectnsds she9 not affect the IlabNity d Guarantor under title Guaranty. A revocation Lender receNes irarn arttr one or mss Guarantors slaA not affect the tlaberity d any renaWr-g Guarantors under this Guaranty. Thb GuararrtY oowrs a revolving Ills of andR and k b speeitlaally antidpated tint Audwtions wHi occw M Ea aggregate amount of Mtdsbbdness owktg from BorroMar b LerMMa Gufranbr epednalfy adatowMdgee erect agrees that Avrduadora In ti's arnotatt of katabbt~tsa, ~^ b zero doNan (! 0.00), shag not oonstld~ts a terrnbarMort of this Gttarartty. Guanrtor's IiabNity wader tMs Guaranty shall terminate orNy tgtort (A) In fu~ bta dpo~ Ilarar ~r'=oMar ~Ipa tree whir ~,) payment of tits Indebtedness M full In Isgal tender, and (C) Payment GwraMy. GUARANTORS AUTHORIZATION TO LENDER. Guarantor authorizes t.erder, without notice or demand and without lessening Gwrantor's IfabiNty under thM Guaranty. from tams to time: (A) to make one or more addl0ond secured a unsecured bare to Borrower, to lease equiprrant or other goods >b Borrower, or oMarwise to extend addNlaal credit tD Borrower; (B) to alter, comprorrAee, renew, edend, aacelerab, or o0arwide charge one a more timed the tkne for payment or other tarro d tta krdsbbdrtees ar any part d the Irdebtsdrass, kakrdirg krcrsaees and decreases d the rats d krtsrest on the k~debtedrass; extensions may be repeated and mny be for kxrger than the original ban brnr: (C) to take and hold security for the paymerrt d this Guaranty or the Indebtedness, and exchange. enforce. waive, s ~ ~• ~ deal wMh arty o more d 8orrow~s such securty, with or without the subsiitutbn d new ccUaterel; (D) to release, aubstiWte, spree _ spayments and credit shall be rron the IradernMedness; (~ aPPIY sudt sacurttY (~ order or merrrar d sale lfared~kx~ng wfihout Ikr~tation, arty non(udk~el sale pemAted by the twins d the contrdNng security agreernsnt or deed d trust, as Lerrcter in b dbaetion may deterNne; (G) to sell, trerafer, assign or grant participatbna in ad a any pert d the Irdebtedrasa; end (H) b assign or trerafer this Guaranty in whole or in part. GUARANTOR'S REPFti:SENTATIONS AND WARRANTIES. Guarantor represents and warrants b Lsrder that (A) no repreeentedlara or agree d arty khd have bean made to Grantor which would ~ or quality Ml ~Y ~Y the terrra d this Guaranty; (B) this Guererriy is executed at d tiMd GGuaranty do notnat corr0iot with or resukL ~erd~C~ urKi ~agreemsnt or other kretrurnera bad~'rg upon Gwranta and do)not rein e vidation d any Isw, regulation. court decree or order sppgcable to Guarantor; (E~ Guerarrtor has not aril wIN rwt, without the prbr written consent d Lender, aeq, lease, assign, encumber. hypotitecab, trarafer, or dherwlse dispose d all or subetaniWy aN d Guarantor's asests, or arty krlerest therein; (F) upon Lender's request, Guererrtor wig provide to Lender tinenclal and credit infarrtistion in fain acceptable to Larder. and aN such fkanciel infonnatbn whk:h curter-tly has ttaen, and an future finenclel kdarrrsdiort which wit be provided to Lerdw a and wiN be true and correct h all materiel respects and bdY present Guarantor's tkiancW axditiort as d the dates the fkteureW inlornratbn b Pte: (G) ~ ~~ adverse ~^~ has oa;urred In Gusrentor'a t'lnarrcid.amditiai skice the date d the moat rea3nt flrtartcial ataternerne provided to Larder and no event hsa occurred which may materiaNy adversay affect Guarantors tinencld candtiion; (H) rw udgation, claim, ~^, adrrbhtrstive proceedkg or simper action (tnduding those for unpaid taxed) against Guarantor is psrx5ng or threatened; (1) Larder has made rb repreasrdatlon to Guarantor as to tits credriworthineds dBorrower and (J) Guararrtor~ has estadtsltad adequate means d obtaktinD from Borrower an a contlnutng basis lnlorrnation regendkrg Borrower's tinertcisl condition. Guarantor agrees m keep adequeAely krfarMd from such nwara d any feels, events, or droterabnces whk:h Guarantor any ainyforrnation or do~uments acq~red by Lender course orelaUonahiP wish t~orrower• shill have no oblivion to dbdoae to GUARANTOR'S FINANCIAL STATEOI~NTS. Guarantor agrees to fiunish Lender with the following: Annwl SpdemerKs. As noon as aveaable, but in no event later than one-hGutwenty (120) days after the end d each flscel year, Guarantors balance sheet and income statement for the year ended, Prepared by Tax Returns. As soon as avaAebie, but >n rw evert later then thirty (30) days after the appikxble f9kp date for the tax reportlng period ended, Federal and other goverrrner-tal tax retains, prepared by Guarantor. AN flr-arK;iat reports required to be provkted under this Guaranty shell be Prepared b ea:ordance with GAAP, applied on a consistent bash, end certNied by Guarantor ag beklg true and correct. Exhibit "C" COMMERCIAL GUARANTY Loan No: 500029913 (Continued) Page 2 GuARANTOA'S WAIVERS. Except as protrhited by appicable bw, Guarantor wedvea any right to require Lender (A) ~ carrtlrrue bndhg mortry or to extend oMrer credft to Borrower; (B) to make any presentrrrertt, Probst, demand, or notice d any khd, hdudkg rx>tice d any nonpayment d the Indebtedness or d any nonpayment ratted to any coNeterel, or notice d any scMort or rrorreation on the part d Borrower, Lander, fury rarefy, ertdoreer, or other guarerttor h comedic, wNh the kxiebtedness or h corxter.-Ikkxt with ttte creation d new or additional bans or oblige~Morts; (C) to resort for payment or to proceed dkectly or at once agehst any perecn, hdudhp Borrower or arty other guarenlor; (~) to proceed dkectly agahtst or exhaust any colbteral held by Lender from Borrower, arty other guarentor, or arty other person; (E) to ghre notice d Mte terms, time, and pace d any public or private sale d personal property security held by Lender from Borrower or to compy with mY other applcabls provbbns d the UrrNorrrt Corrstterclal Code; (F) to pursue any other remedy withh Lenders power, or (G) to cortvnit any act or orAsalon d any khd, or at any time, with respect to any matter whatsoever. In addition to the waivers set forth herein, if now ar hereafter Borrower b or shell becorw insolvent end Mte hrdebbdrtess shah not at aq times txttil paid be fully secured by coNaterel pledged by Borrower, Guarantor hereby forever waives and pNes ~ h favor d lender and Borrower, and Lenders and Borrowers respewtlve successors, arty claim or right to payment GueraMor may now have or ttereetter have or acquire apekrst Borrower, by subrogation or otlterwbe, so that at rw time aheN Guarernor be or become a •creditor' d Borrower wtMth Mte rrrearthg d 11 U.S.C. sedior- 547(b), or any successor provbion d the Federal bankruphy lawn. Guarantor also waives arty and alt r~hb ar defenses a-bkrg by reason d (A) any •arte actlort" or •arrU-deflck~ncy' Iaw or arty ati~er law whk~r may prevent tender from brktpktg arty ecMon, tndurMrtg a dekn for deficierwy, agahet Guarantor, before or sitar Lerxkrs corrriertcertten< or coripetton d any foredaeure action, eMher judfdsNy or by exerobe d a power d sorb; (B) any ebctlon d remedies by Lender wttbh desVoys or atherveias adversely affects Guarantor's subropatbrt ruts or Guarantor's rl~rla to proceed agahst Borravr~ for reimbursement, hdudng without IkrtiEngort, any loss d rights Gusrarttor may suMer by reason d any law Itmidrtp, qualNyhg, or dbdteughg the htdpbbdnsse; (C) arty dbabAlly ar oMter defense d Borrower, d any oMter guararMrx, or d mY oMrer person, or by rsssa~r d the cessation d Borrowers uebMty from arts cause whatsoever, oMter then payment h fiat h legal tender, d the Irrdebtsdrresa; (D) arty right to claim dbdterrge d tits Irxkbbdness on Mw basis d ur~usMhd krrpeimtertt d arty caMateral for the Indebtedness; (E) arty statub d Ihtitatktns, H at any three any action or suR brought by Lerxbt a~shst Gusrugor b corrnenced, there b outabrxHng hdebbchtess d Borrower m lartder which b riot barred by any applcsble statuoe d Hrr~btlorw; or (F) any defenses gNen to guarantors at law or h equky other Than actual payment end perfarrrrertce d the Indebtedness. N payment b made by Borrower, whether vdunbrily or otlterwlae, or by arty thkd party, on the Indebtewfr-eae and thareafbr Lender b forced to remk the amamt d that payrartt to Borrower's trustee h banknrptcy or to any sirnNar person under any federal or state ltenkmrptcy law or law for the relbf d debtors, the Inda~rrees strati be cronskfered unpaid for the purpose d the eMorcerterrt d ihb Guaranty. Guarantor further waives and agrees riot to assert or dahn at any time any deductlons m the araurtt guaranteed under this Guaranty far any dnim d setoff, corxtterdeihn, counter demand, recoupment or similar right, whether such claim, demertd or right mry be .asserted by the Borrower, the Guarantor. or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAVERS. Guarantor warrants and agrees that each d the waivere set forth above b made with Guaran~r's fuH krtowledpe d its significance and oonsequertces aril that, under Mte cictm~abrrcea, Mte waivers are reasonable end riot contrary to Push PAY or law. N any such waiver b determined to be c:ontrery to any appNcable law or public pdirry, such waiver shall be eAectlve ar>h- to the extent permitted by law or putrlic policy RIGFIT OF SETOFF. To the extent permitted by appkrebb law, Lender reserves a right d setoff h aB Guarantor's aooourtb witlt lender (whether chedchg, savhrga, or some outer account). This hdtxles aN aorxturtta Guarantor holds johtly witlt sarreorte alas wtd eE encotrtta Gueranbr may open h the tudue. However, this doss not hdude arty IRA or Keogh accamb, or arty trust account for which setoff would be prdthiEed by law. Guarantor auMxxizes Lender, to Mte extent permitted by applicable law, tb hold these funds ff there b a default, and Lender may appy the funds h these accamb 1d pay what Guarantor owes under the teats d this Guaranty. SUBORDINATION Of BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the itdebbdrtesa d Borrower to Lender, wheMr~ now exbthg or hereafter created, shell be auperbr fo any claim shat Guarantor may rtow have or he-eedbr esquire e~itst Borrower, whether or not Borrower becomes haoNent. Guererttor hereby expressly suborcirrettaa any claim Gueranbr may trove agahst Borrower, upon any account whatsoever, to any claim that Lender may now or hereafter have ag~rtst Borrower. In Mte event d krsahrertcy and consequent Nquidatlon d Mrs eiseeb d Borrower, through banknrptcy, by en asalpmrertt for the IterrefR d creditors, by vdurttary IlqutdaMon, or otlterwbe, the asset d Borrower appicable to rite payment d Mte claims d both tender and Guarerttor ahaN be paid m tandararrd aitaA be Mrst applied by Lender m Mee Mdebbtirbes d Borrower to Lender. Guarantor does hereby assign to Lerxler all debts whbh ft may have a acquire agshst Borrower or agehst arty assignee or trustee h banknrptcy d Borroaer, provkled however, that such essfgrsnertt ahep be eftecMt-e only for Mte purpose d assurig to Lertdsr fuA payment h lapel tender d the Indelsedneee. ff Lender so requests, arty Hobe or credit agreemeMa now or tteresfbr evidencing arty debt or obligatlarts d Borrower to Guaren~r shah be.mwked with a legend tltat Mte sere are subject to fhb Guaranty and sheN be detHvered b L.erxJsr. Guevarttor agrees and Lender b hereby auMtorized, in Mte name d Guarantor, from time m thrte to file fhartcirp atatemerris and cantlntraMort statemsnls end to execute documents and to take such other actlona as Lender deems necessary or appropriate >q perfect, preserve and enloroe Its rights under fhb Guerartty. fd1SCELLANE0U8 PROVISIONS. The following mbcallaneoue provisions are a part d fhb Guaranty: Amendments. Thb GuereMy, ~gelher wNh arty Rebbd Doctrrtertb, cortsMhdes the erttlre tutdersbrtdhtg and et~eerttsnt d Mte parMse as to the matters set forth h Mde Guerenty. No alteration d or artendrttertt to Mtb Guaranty attaM be effectlw unless given h writing and signed by Mte party or parties sought to be charged or bound by Mte alteratiart or arttertdrrtertt. Attomays' Fees; Expenses. Guarantor agrees b pay upon demand aA d Lenders cost and experues, hduding Lender's stlorwys' fees and Lender's ~ expeneea, incurred h connection wbh the enfarcerrtent d fhb Guaranty. Lender may hhe or pay eomeorte else b help enforce Mtb Guaranty, and Guerartbr slteN pay the costa end expenses d such enforcement. Casts and eocpartsee hdude Lender's attorrteya' fees and kigsl expenses wtteMwr or not there b a lawsuit, hdudhg attorrteya' fees and lapel exparteea far bankruptcy proceedings (hdudirg effarb to modify or vacate any autanetlc stay or hjtutcMon), appeals, and arty enttcipabd post-judgment cdlecMon services. Guarantor atao aheM pay aM court costs and such additional fees as may be directed by the court. Caption Flesdktga Caption tteadhtps h this Guaranty are for cxxtveniertce purposes only and are not to be used tD hterpret or define the provbkxts d this Guaranty. Governing law. Thb Gwranty will bs governed by fedsral law applirreble to Lender and, to tits extant not preentpbd by federal bw, the Isws of the Commonweellh of Pennsylvania without regard b Its eatfllds of law provisions. Thb Gtanrtty tree been aecepbd by L,atder In 11te Commonwestth of Pennrylvanb. Cholos of Vanua N there Is a bwsuk, Guarantor agrees upon !.enders request m submit m the )urbdction d the court d Cumberland County, CorrrtortwaeNh d Pennsylvania. Irttegratbn. Guererttor further agrees that Gueranbc has read and iwty txtderatands Mrs terms d Mtb Guaranty; Guerar-tor rem Had Mrs opportunity to be advised by Guarantor's attorney with reaped to fhb Guaranty; Mte Guaranty ~ retiscb GureartFOr8 ittentlorte and pars evkfence b rat required m itterpret the brns d fhb Guerenty. Guarantor hereby hdertrtrfies and holds Lender hemtbas from ek losses, obhts, damages, and costa (itcluding Landers attorneys' fees) suffered or Incurred by Lender as a reauk d arty breech by Guersrttor d Mte warrantles, • COMMERCIAL GUARANTY Loan No: 500029913 (COntinued) Page 3 repraserttatkxa and agreements d thfs paragraph. Inhrpreietlon. In aU cases where theca is more then one Borrower or Guarentor, then ap words used h this Guaranty h the ainptYar shall be deemed tD have been used h the plural where the t:orrtext and crorrstnrCtion so requke; and where there b more then one Borrower earned h this Guaranty or when this Guaranty h executed by more than ens Guarantor, the words 'Borrower' and 'Guaranbr" respectlvey shell nrsan ap and any one Or rnOre d there. The words 'Guarantor, "1' and "Larder krr.Ulde ilsia ~ha.k~e, ekxxxseeaora, assignal and trarleferees d each d them. If a cant fkds that any provision d this Guaranty b r10t Valid Or should nd t1e erdorcxd, ttlat ~ by itsaff wip not mean that the rest d thh Guarerriy wpl not be valid or entorced. TI>arefote, a court wB erdorce the rest d the proVisiorte d thh GuarerMy even M e provhion d this Guarar><y may. be faurd to be irwepd or txrerle. ff any one or more d Barower or Guaranbr are corporetlons, partp+lretaps, Iknited uebpity companies, or simper entlpes, tt >e not necessary for Lend r~ onthelr behalf, erarrydk~debtedness made or crested in r iant:e'upon' partners, manngere, or other ager~ acthg or purportirp prafesaed exercise d such powers steep be guaranteed under ttda Guarardy. Notkres. Unkiss otherwise provkled by applicable law, arty notice requked tD be given under thw Guaranty ahd be given h writkg, and shall be effective when acUu+gy depvered, when scdreAy received by telefecakrtpe (ur>tees otherwise requked by Iaw), when depatted wfih a nettlonepy recognized ovemigM courtsr, a, if reaped, when deposited h the United States map, as first de~aa, oertpled or registered mail postage prepaid, dkeded to the addresses stavm near the begimhg d ~ puGuar ~A ~p~ ~y d~e ~ p~,a , th~ ~, farrrel wrRten rxribe to the ottrer partles, apecilykg Guararrtor a~ees to keep Lender hfonrwd at ap 1Mrrea d Guarantors current address. Unless oYtsrwfse pro~kNd by applicable law, M there is more th~ one Guarantor, any ndke given by Larder to arty Guarantor is deemed to be ndbe gNan b aN Gusrantora. No Waterer by Lander. Lender shah rat be deemed 1D have waived any rights under this Gumanty unless such waNar h gNen h wnthg and shed by Lender. No delay or omission on the part d Larder h exercising any right ahap operate a a waterer d such right or any other rigfrt. A waNer by Lender d a provisbn d this Guaranty shop not prejudice or corradd,te a waNer d mender's right otherwise to demand strict compliance with that provisbn ar any other provision d this GuararHy. No prbr waiver by Larder, nor any cause d daapng beMresrt Lender and Guarantor, shall coradihae a waNer d any d Larder's rights or d any d Guarentor'a abpgations as tD any future trarteactlorta. Whenever the oonseM d Larder is required under this Guaranty, the granthg d such conserrt by Larder h any hatarwe chap not oorrsUtt~te oordkwhg consent to subsequent Instances where such consent is requked and h all cases such consent may be grerrted or witllhNd h the sole discretion d Lender. Sur:oesaors and Asstgne. The terms d this Guarerny chap be bhcpng upon Guarantor. and upon Guarenlors Heirs, personal representatives, successors, and assigns, and shag be enforceable by Lender and its successors and assigns. Waive Jury. Lender and Guarani rtor hereby waive the Hght to any fury trial In anY action, proceedkW, or cxrurrterclalm brought by either Lender a' eorrovrer agalnat tM other. DEFlNfTION3. The fdlowhg capitalized words and terms shall have the fdlowhg meanings when used h this Guenutty. Unless specifically stated to the rY, ap references tD ddlar amounts ahap mean amounts h lawful money d the United Sthtas d Arrterba. Wards and terrrrs used h the Guaranty soh tap~h eetF~ rt~ar-~ att~to s~h h Cie Un~i' can~rtrercialcodeR1fly ire. Words and tame not of},erwia® dalhed h leis Borrower. The word "Borrower" means Cadmasters Group, Inc. and hGudes all co-signers and co~nurkere aignhg the Note. GAAP. The word 'GAAP" means generally accepted axarnthg prkrciplea. Guarantor. The word 'Guarantor' means each and every person or entity signhg this Guaranty, hduding wiBwut Ikrritatldn.StpMslaw Z. Sudd. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without ikNtation a guaranty of'8il or part d 1tie.Note. Indebtedness. The word "Indebtedness' means Borrowers indebtedness to Larder as more perpcularfy described, in tl~b.6uarenty. ~ ' Lender. The word "Lender" means Mid Penn Bank, iLS successors and assigns. Note. The word "Note" means the pramisaory note dated May 24, 2005, in the original prtncipai amount of 31;0,000.00 from BaTOwer to Larder, together with ep renewals d, extensions d, modiflc;atbns d, reflnancmgs d, consdidatbns d, and suba0hrdorla tdrthe p-ort>iasory note or agreement •,..- ~ ,;,~' ,~ Related Documents. The words "Related Documents" mean ap prombaory ndes, credit ,agreerrrerks, ban. a~eernerilc,< ehirirorirr>arttal agreements, gruuarrtiea, security agreements, nartgagea, deeds d trust, security deeds, oopathrei rnortpages, and s~ other trtstctnrrents, agreements and documents, whether rxNnr or hereafter existhg, executed h corurecfion with the Indebteddness. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVAiWA, OR ELSEVYHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WRH OR WITHOUT COMPLAINT FlLED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, IATE CHARtiES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (1096) OF THE UNP/JD PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FNE HUNDRW DOLLARS (:500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFlDAVIT SHALL BE SUFFlCIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFE88 JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM 1TME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WANES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATNE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. COMMERCIAL GUARANTY Loan No: 500028913 (COntinuti$d) Page 4 EACH UNDER8lO1NrD GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF TH18 GUARANTY AND AGREES TO TTt3 TERMB. IN ADDITION, EACH GUARANTOR tlNT'ANDS THAT 7fES GUARANTY IS EFF8CT11FE UPON GUARANTOR'S EXECU110N AND DELNERY OF THE GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTZ TERM~IATED IN THE MANNER SET FORTH IN THE SECTION TITLED 'DURAT~N OF GUAWIN'tY". NO FORMAL ACCEPTANCE BY LENDER ffi NECESSARY TO MAKE TtgB GUARANTY EFFEC7'tVE. THIS GUARANTY IS DATED MAY 24, 2t>~. THIS GUARANTY ~ GIYEN UNDER SEIAL AND Tf IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A 8EALED NdSTRUMEW'T ACCORDING TO LAW. GUARANTOR: ;•$>: ..; ..: ...,:. ..:•: :: :: ~ ~ .. .:x• >:~: 7C<•::. ... ... ..: • ... ~•..::.;:.,.:.::. .. Seal) lan- INDIVIDUAL ACKNOWLEDGN~ENT COMMONWEALTH OF PENN8YLVANW SS COUNTY OF ) ,~-~-1. on ,I~, ,r,~ ~ say o~ `~''? ~'1 . zo d s me .~~~.,.,.,...;.1-~-~.s- . the undersigned Notary Pudic, PeY aPPea-ed SQMhlsw Z 8udo~, to me (or proven) to be the person whose r~eme is subscr~ed to the within instrument, and advwwledgsd that he or she executed the same for the purposes therein contained. in witness whencf,l hereunto set my hand and offidal seal. '~~ ~~ Notary Public in and for the State of AMY t~omtttfe~lort E~pk~ JtrMlifOgg • ~ AROChIllOi'1 C11 N6tiGYea INOI MID l~Mn} W. l>YOi00{ Qap. IYArd fYrwY MWw. Mw. 1r7,100[ N lyr ~'~. • M L'IdRVL1EriPo TR~tON MFMDy1R Guarantor: ilblporstit Sudd (ssN: ~f12-ss-3u1~) 4702 Carlbb PNos Medrankeburp~ PA 17065 AMOUNT OF GUARANTY. Tttb b a guaxartty of payment of the Note. IncludMy without Iimitatlon the fxMdpal Nola amount of Ona Hurrdrsd Twenty Ztrousand iti OOM00 Dollars (1120,000.00). GUARANTY. For hood and valuable rbnsldaration~ Melporrab Sudol ("Guxantor') ~~ and uncorrditlonelly Swrarrbas and Promisee to . pay to il0d Penn dank ("Lander') or its order. on demarrtl, M bpN terrdar of Ure United f3tabs of /hrrerloa,lM krdablednees (era that farm b dafhrsd babes) of Cadmasters Group, Ire. ("aorrower") to Lender on the terms and oondldone set forth M fhb citgranty. ~ LIABILITY. The maximum liabiity of Guarantor unbar fhb Guaranty etraN not exceed at arty one time tt-s amo~pn d the kidsbbdrwss described herein, plus ai coed and expenses d (A) entacement d thla Guaranty and (B) cofiection and sale d any cxyletaral securktg thb Guaranty. The above IGrabtbn an iebifty b not a reshicdorr on the amount d the kdebbdr>ess d eorrowir m ~, tendath'a~r aA pua~rantles shell ff Larder preaentty holds one or more guarentbs, a hereafter recNvea additlorral guaranties be cumulatNe. Tl~s Guaranty at>au Hart (urrtesa specllk~Ny provklad babes to the aifea or invalidlete any such other guarantbs. Guarantor's Ilebilty wYl be Guanurta'e aggregate Ibbilty under the bans d ihb Guaranty and arty such other urrbrtninabd gcmrerttles. INDEBTEDNESS GUARANTEED. The Indebtedness guerenteed by this Guerarrty kxdtdes the Nob, including (a) aU fxirx~pal, (b) ai k-terest, (c) afi lab charges, (d) ai ban fees and kran charges, end (®) afi coNecdon cysts and expenses relating to the Mote a to any coiateral for the Nob. Coie~.'tlon costs aril expenses tndude wNtwut firrribtion ai d Lenders attomeya' fees. IoU(iuarantor orFto Borrower, and I continue in~fufi faceface urMl ei irtdebbdr~ees sire9 havehave Mean htiyn ~N P~ and sstlatlad and~(iwrarrtors other obligatkxis under thb Guaranty shag have been Pam to tuN. Release d arty other guerador a terndrtatim d arty oCrsr guarardy d the Indebbdness shall not affect the itsbiity d Guaranta order this Guaranty. A revocotiort Lander receives Iran any aye a more Guerardors shat not affect the ibbiity d arty rertiainirg Guarantors under fhb Guaranty. Thb Guaranty covers a reroMlrq Ilse of creept and K b epacdllaallY arrtldpated that ttuctuadons wiH ocrxu in the aggregab amount of Ntdebtadneae owing hom Borrower to Leader. Artra'arNor ~eot~ally adrrtowledAs and agrees that flucwatlorte In the amount of Mdebtednea, even to pro dollars (i 0.0D~ shah not cortefth+b a tanNrtalbn of this Guaranty. Guarantor's Ibbitity under lids Gwnrrty shah brminats onty upon (A) b btu o ~i Liwrar fir' bW unthi~e) payment of the Indebtedness th full In IegN tender, and (C) pymerrt Guaranty. GUARANTOR'S AU'THORIZAT~N TO LENDER. Guarantor authorizes Lender, without notk~ or demand and without leaening Guarantor's (lability under thb aararrty. horn time to time: (A) to make are a more addltlonel secured a urwecwed krerrs to eorraner, to k+ase egcr<prrrerd a other goods to Borrower, a othawbe to extend addidotrrsl credtt tD Borrower, (B) to alter, comprorrrbe, renew, era, axelerete, a otf>erwbe ct~enga are or more times the time fa payment a other bans d the Indebtedness a any Part d the kbebtednas, Increases and decrasses d the rate d krbrest an the indebbdr-ess; extensbna may be repeated end may be to tape then the ori~rwi loan tem>; (C) to take end hold security for the payment d fhb Guaranty a the Indebtedness, end axdtape, enforce, waNe, subadkiab, fat a ladle nd to perfect, and release any such security, with a without the substilutlon d new c~bteral; (D) tD release, substitub, agree nd tD sue, a dad wMh any ape or more d Borrowers sureties, endorses, a other fluarentora on arty tem>6 a in any Larder may choose: (E~ to dabrmine how. when and what applkxtbn d fragments end credits shell be ntede on the Indebtedness; (F) to appty such sacsuky and direct the order a mannw d sale thered, krduding without Iimitatbn, arty rxx~udk~el sale Permitted by the terms d the corrtroNNk>sl setmrity agreerrrent a deed d trust, es Larder th Its dacretbn may detemdr-e; (G) to seN, transfer, a~ign a grant Pardclpatkxu in all a any part d the indabbdnesa; end (Ff) to assign a transfer this Guaranty in whole a in paR GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarar~ represarb and werranb to Lender that (A) no represerrbtions a agreema-is d any kind have bean nrede to Guarantor which would limit a quafity th any way the terms d fhb Guaranty; (B) thb Guaranty b execubd at Borrowers request end not at the request d Larder; (C) Guarantor has fuN Power, right. end authaNy to eater krto this Guaranty; (D) the Provbkma of thb Guaranty do rrot c~relict with or result in a deteutt order arty agreement a otlrer krstrurrrsnt badir-g upon Guarantor and do not result to a vioktion d any bw, regWatlon, court decree a ceder applicable ro Guarenbr; (E~ Guarantor has net end wit not. wMhout the Prior writbn consent d Lender, sell, lease, assign, encumber, hypotlwcate, transfer, a oltierwise dispose d afi or subsbntbiy afi d Guarantors eased, or any inbrest therein; (F) upon t.errdera request, Guarantor wit provide to Lerxler tirwrclal and cxedtt krformaUon in fam acceptable >n Lender, end sA such flrrancbl kdornuttkxr which currently has been, end ei future ik-arx:W frtforrrettior- which wtN be provided b Leader b and wS be true and c~rroct kr ep material respects and birfy present Guarantors flnencbl c~rdttion as d the dates the finencbl hfonrxdor- b provkted; (G) no n~abrbl adveree change has occurred in Guarantors fNrarx;bl corditon ahrce the date d the moat recent ttneurclal statements provkbd to Laden and no event has occurred whk;h may materialty adversely affect Guarantor's firrerrclel rmrxiifion; (H) no • cam, krveetigsdon. admM~istradve P a etrrtler action (including those fa unpaid taxes) egakrst Guarenta b paling a threatened; (I) taider has made no repreeantation to Guararnor as to the wedilworth~ness d Borrower; and (J) Guarantor has esbbliehed adequate ~ ~ ~cl ~s regarclrrg Borrower's tinerrciai condition. Guarantor agrees m keep adequately p~rento~any k~ontiorrG documents acquired by l.ender~ ~~tlre cowse relationship rv~ Borrower. e~ have rw obitpetbn to dbck~ae to GUARANTOR'S F'gVANCULL STATEMENTS. Guarantor agrees to fumbh Lander with the following: Guarantors be sheet income staterr~errt for the ended, prepared by Guerarrta. (tom) rya after the end d each tbcal yr, Feder and other governmenbi taxeretums, prepared by Gunrenbor. (~) days after the applicable filing date for the tax reporting period ended, Ai financial reports required m be provkled under this Guaranty shat be prepared in axordance with GAAP, applied on a c~nsbtent basis, and certified by Guarantor es being true and correct. Exhibit "D" COMMERCIAL GUARANTY Loan No: 500029918 (Continued) Page 2 GUARANTOR'S WAVRERS. Except as prohibited by apppcade law, Gua~or waives arty right to require Lender (A) to tartdrnre lertdfrtg rttortey or tD extend other credt b Borrower; (B) to make arty presertVrterd, Protest, demand. or ratae d any kktd, Maludirp notice d arty nortpaymertt d the Indebtedness or d any nonpayment related to any collaterd, or notice d arty action or rtortactioct on the Part d ecrrcvrsr, Lender, any suety, endorser, or other guerenar in corrtection with the Indebtedness or k- cavtection with the creation d new or adr9tlortsl ktarts or obppaMorta; (C) to resat for Payment or to Proceed dlrecMy or at once against any person, kaludirtg Borrower or any other guererttor; (D) to Proceed directy against a exhaust arty copaterai held by Lender from Borrower, any other guarantor, or any otter pereon; (E) to give ttofbe d the terms, Mate, and place d any ptthlic or private sale d personal Properly securltt+ held by Lender from Borrower a to compy with any oMter spppcebfe provbbns d the Uniform Commercial Code; (F) to pursue any other remedy wilhkt Lender's power; or (G) to commit any act or omission d any kfrd, or et any time, with respect to any matter whatsoever. M addldon to the waivers eel forth herein, M rrow or hereafter Borrower is or shell became insolvent end the irtdebtedrtaea shah not at ap Mates urttp pskJ be fuNy secured by cxtpaterd pk+dged by Borrower, Guarantor hereby forever wahres and gives up in favor d Lender and Borrower, end Lender's and Borrowers respectlve suxessaa, any dalm or right to payment Gusrarttor prey now have or ttsreefter have or ecqufre agaktst Borrower, by autxogation or otherwise, so Mist at no tkrte shag Guarantor be a become a 'credloor' d Borrower wNhirt the mewtktg d 11 U.S.C. section 547(b), or any atxxressor provision d the Federal bankruptcy laws. Guarantor eko waives any and all rights ar defenses arisUtg by reason d (A) any "one actlon" or '~' kw or any other law which may prevent Leader han brinphg any action, taludktg a daim for defaiency, agaktet Guarantor, before a after Lender's axrrrwrtcerrtertt or compbtion d any foreclosure actlon, ettlter Jtxiiciapy or by sxercbe d a power d sale; (B) any election d rerrtaMes by Lender whkit detttroys or aMtervrise adversely affect Guarantors st~rogaMort rights or Guarantor's right to proceed against Borrower far reimburserrtertt, kxArdiq wUttout Ihtitatlon, any kxts d fights Guarantor may suffer by reason d any law IYttUktg, gtr~ifying, or diadurr~rtg Mrs Indebtedness; (C) any dfeabpUy or other detrtse d Borrower, d arty other guerarttor, or d any outer perecn, or by reason d Mte cessation d Borrower's pabpUy trarrt arty cause whmtsoever, other then payment in full trt legal tender, d Mrs Irtdebtedrteas; (D) any right in daim disdtarge d the Indebtedness on Mrs basis. d unJtaritAed kttpahrrtsrtt d any caNebral for Mrs indebtedness; (!~ any statute d IknpaMona, ff at any tkne any action a suit brought by Larder apeNtst Guerartlor is carrrMraed, Mtere Is outstanding k~debtedrtess d Borrower to Lender whkMt is not barred try any appticade stedrt d Ihtitettone; or (F) any dsfertsss given to guererttors at law ar h equity oMter than actual peyntsrtt and perfarrnerae d Mrs Indebtedness. H payment la made by Borrovwrr, vrttelftsr vtthmtrpy or ctherwbe, or by arty thiM party, on the indebtedness and Mteresiter Lender is forced to remit Mrs anatrtt d Mtat paymMtt to Borrowers trustee in benknrpky or to any sknpar per~rt under any federal or state bankruptcy law or law for Mte relief d debtors, the Indebtedness strap be txxtskfered unpaid for Mrs purpose d the artforcerrtertt d Mtb Guaranty. GuareMor furMter waives and agrees not to assert or dakn at any trrirte any deductlorts to Mrs antorrtt guaranteed under Mtn Otalranly for arty claim d setoff, coutterdatm, counter demand, recouprrtertt or skrtpar right, whether ouch dakrt, demand or right may be asserted by the Borrower, the Guarantor, or both. GUARANTOR'S UNf~RSTANDINCi WRH RESPECT TO WAIVERS. Guarantor warrertt and agrees that each d the waNere set forth above is made with Guarantors toil atorrledge d fts sigrtiflcartce end txtrtseque-tc:ea and Mtat, under the drourrstrtces, Mrs waivers are reasonable end not cmrttrary ib gotta pdicy or Iaw. N any such waiver fe deterrrtkted to be contrary to any epplkxrble law or gotta policy, such waiver sheN be effective arrly to the extent perrrtUted bylaw or public policy. RIGHT OF SETOFF. To the extent permitted by applkxtble law, Lender reserves a right d setoff in all Gtavarttor's axotrda with Lender (whether ctteddng, savings, or some oMter accord). This hdtdes ep aaxxxtia Guarantor holds joirttiy witlt sameorw else and ap accoutts Guarantor may open in the tuttre. However, thb does rat include any IRA or Keogh accoutb, or arty trust accounts for wFraFt setoif world be prohbUed by law. Guerartar auMtorizes Lender, to Mte extent permittd by applicable law, to hold these funds M Mtge b a detatat, and Lender may apply Mrs turxt in these arx:ouMa to pay what Guarantor owes under the terms of this Guaranty. sUBORfHNATION OF BORROWER'8 DEBTS TO GUARANTOR. Guarantor agrees Mist the Indebledrtass d Borrower to Lender, wlteMter raw existing or hereafter created, shall be superior tm any datrrt that Guarantor may raw have or tteraafter acquire against Borrower, wttoher or riot Borrortrer becomes insoNerd. Guarerttor hereby expressly subarrpnates any claim Guarantor may ttwe agnhst Borrower, upon arty aaatrtt whatsoever, to arty dekn that Lender may now or hereafter have against Borrower. In the event d ktadtrertcy and catsegtrertt Ikiuidation d Mte assets d Borrower. throtptt bankruptcy, by an assigrswrterrt for the benefit d credNors, by vatuntsry pquidation, or oMtsrwlee, the assets d Borrower apppcable to the payment d the claims d both Lender and Guarantor attaN be paid to Lander and strap be first apppsd by Larder to the indebtdr-sas d Borrower to Lender. Guarantor does hereby assign to Lender all dairns which ft may have or acquire against Borrower or agetnst any assignee or Trustee in bankruptcy d Borrower, provkfed however, titer such aadgrxrtertt shop be effective only for Mte purpose d sasurhg to Lender full paymerd kt legal tender d Mte Indebtedness. U Lender so requests, any rates or credit agreement now or ttereefter eviderrdrtg any debt a obligations d Borrower to Guarantor shag be rrbrked with a legend Mtat rite same are au6ject to Mtn Guaranty and shag be deiNered to Lender. Guarantor agrees. end Lender is hereby auMarized, in the name d Guerarttor, from time tit time tD tpe ffrtertcirtg statement and corrtkxartion atterrtent and to execute docurter-t and a take such oM-er adkxta as Lertdsr deems necessary or appropriate to perfect, preserve and enforce lla right under This Guaranty. fiIBSCELLANEOUS PROVISIONS. The sawing miscellaneous proviskxts are a part d this Guarerdy: Amandmartts. Thin Guarsrtly, togeMter with any Related Documents, constitutes Mte entire ~ and agrearrterd d the parties es to the matters set forth kt this Guaranty. No alteratan d a amertdmerd to this Guarerdy snap be eftedtve unless given in writing end signed by the party or parties sought to be dtarged or bound by Mte afteretan or arrrertdrrtent. Attorneys' Fees; Expanses. Guarantor agrees to pay upon demand ap d Larders coat end experres, ktcluortg Lenders attomeya' fees and Lenders ktged expenses, inctrred to corrrtection with the ertarcentertt d this Guaranty. Lander may hke or pay sorrteorte ate to help enforce thb Guerenly, end Guarantor shag pay the cost and expenses d such enfarcerttertt. cost and expartsea ktdude Candor's attorneys' fees and legal expenses whether or not there fs a IawsuU, inducting attorr-eys' ~ and legd expenses for bankruptcy proceedings (including attar to nxxMfy or vacate arty autontetic sty or ktjutdion), appeals, and any enndpated post~udgrnent cdlection aervirres. Guarantor also shop pay ap court cost and such addltlonN fees as may be directed by the court. Caption Headings. Captbn headings to this Guaranty are for convenience purposes ordy and are not th be used tD krterpret or define the provisions d this Guaranty. tioveming Law. Thb t3tatranty wiU be gowned by federal law appilcable to Lartriar and, to the soctartt not preerrtptad by federal law, the Taws of the Commonwealth of Pennsylvania without regard to its trorMk:ts of taw provbiarts. Thb Quarartty has bean aexeptad by Under in the Conunortweatth of Pennsylvania. Cltotw of Ventre. ff there la a lawsuit, Guarantor agrees upon LerMer's request to submit to the Jtrisdctiort d the courts d Cumberland County, Conxranweettit d Perxtaylvania. Integration. Guarantor further agrees that Guererxor has read and fogy txtderstarxis the terms d this Guerartty; Guarantor Flea had the opporrixtiry !b be advised by Gtrarenar's attorney with respect to this Guaranty; the Guaranty fogy reflect Guararttora truerttlons and peril evidence is rat requked to itderpret the terrrts d this Guerertty. Guererttor hereby indenxtifles and lx>Ids Lender ttemtlses from aN kmses, darts, derrtages, and cost (including Lenders attorneys' fees) suffered or incurred by Lender as a resuU d any breech by Gtatrarrtor d the warranties, COMMERCIAL GUARANTY Loan No: 500029913 (Continued) Page 3 repreeentatkxrs and agreements of tins patagreph. krttsr'prstation. In afi cases where there is more than one Borrower or Guerarrbr, then ati words used in ihb Guaranty in the singular snap be deemed b have been wed h tine plural where the centred aril corwtruction so require; and where there is more ti>on one eorroMrer rremed in this Guaranty « when rtes Guarenty is executed by more tnsn one Guaranbr, the words 'Borrower' and 'Guarantor' respectively shall mean ep and arty one or more of them. The words 'Guarantor," "eonower; and 'Lender" kalude the hake, successors, erwfgrrs, and trerroferees of each of them. K a raurt lkxis tlist any provision of this Guarerrty is not valid or should rat be erdorrred, that fact by ftsetf wiq rat mean that the rest of this Guaranty wAi not. be vapd or enforced. Therefore, a court will enMroe the rest of the provbbns d ti~ Guaranty even ti a praviabn of this Guaranty may be forxxJ b be kn-edfd or unerdoroeable. If any one a more of Borrower or Guarenbr are corporations, partrtaretAps, pmitsd liebpity companies, or skrrYar endues, p ~ not necessary for Lender b inquke into the powere of Borrower or Guarantor or of the officers, dkecbre, pa~~, gars, or ottrer agents acting or purporting b act on their behaM, and arty krdebtedrress made or created In reliarae upon the professed exercise of such powers shall be guaranteed under this Ouararrty. Notices. Unless otherwise provided by apppcabie law, any notk:e required b be given under Ina Guaranty shall be gNen h verging, and steep be etfective when f depvered, when aclwlly received by telefacsirrde (artless otherwise requked by lain), when depoelted with a r>atiorrelly recognized overnight courier, or, if mailed. when depoetied in the. Untied States , as Net clew ~ b Q directed b tl~e addresses shown near the beghuting of thb Guaranty. Any party Y cFrange formal written notice b the other parties, specilyhg that Iles purpose of the notice fs b the party's address. Far notice purposes, Guarantor agrees b keep Leader informed 8t aU tknes of Guarantor's current address. Unless atl»twise provided by ~~ ~. iF there is more than one Guarantor, any notice gNen by Lender b any Ouarentor Is deemed b be ratite given b ap Gtmrerrbrs. No Waiver by Lender. Lender shell not be deemed b have waived any rights under this Guaranty unless such waiver b given In wrilkp and signed by Lender. No delay or omission on the pert of Lerxler kt exercising any right steep operate ae a waterer d each right or any ottwr right. A waiver by Lender of a provision of this Gwrenty shah not preJud'ae or corwtibite a waiver of Lender's right c>therwlse b demand strict oomplieurce with that provision or any other provisbn of this Guaranty. No prior waiver by Lender, nor any course of deaprrg between Lender and Guaranbr, shall contihrte a waiver of arty of Lender's rights or of any of Gwrantor's abiigatbns as b any future >ranstratior>s. Whenever the rxxtsent of subsequentt ines where such ~ ~ is requgandf in all cases suchyconserd may bye grarded or witlaeld kr discor ~ Lerxler. b sucas>rors and Assigns. The terms of ti,ls Guerenty snarl be binding upon Guaranbr, and upon Gwrantor's heirs, personal representaWes, auccresaors, and assign, and steep be enforceable by terxler and'ps swcessors and assigns. Waive Jury. Lender and Guarantor hereby waive the rl9trt to any Jury Mal in any action, proceeding, or earnterclalm brought by either LArrder or Borrower against the other. DEFINRWNS. The foporvM~g capitalized words and temp shall have the fdkiwing meanings when wed ~ this Guareniy. Unless specifically stated b ~ ,~~y, ap ~ b dollar enaunts shop mean anaur-is in lawful money of the United States of America. Words end terms wed a the Guaranty shell) hevethe rneattk>gs attrbut~ed b such terrrr$ hh the Unporro CommercialCode~Y wire. Words arrd terms not otherwise defined h this eorrowsr. The word "Borrower" mean Cedmastere Group, Inc. and ~cludes all co-signers and co-makers signing the Note. GAAP. The word "GAAP` means generapy accepted accounting principles. Guxantor. The word "Gwrentor' means each and every person or entity signk-g this Guaranty, kaluding without limitation Ahelgorzats Sutlol. Guaranty. The word "Gwranty" means the guaranty from Guarantor b Lender, kaludkrg without Ikrtitation a guaranty of all or part of the Note. Indebte~ess. The word 'Indebtedness' mnn Borrowers kxtebtedness b Lender as more partlcularly described k- thl~ Guarerrty.~ . Lender. The word'Lender' means Mkt Penn Bank, its successors and assigns. ~~~ Note. The word "Note" means the promissory rate dated May 24, 2005, in the original prindpal amount of ~1R~,t>!110,00 from Qot-Pjigef~b Lender, together with all renewals af, extension of, modiflcatkx~s of, refinncinga of, cansdidation of, and substihrtiorrs for fie°~-orrasfigry fate or agreement ~~~'' Related Docwnsnts. The worms 'Related Documents" mean aN Promissory notes, credft agreemarrts, loan agreemertis, errvkonmental ate, gwra~, secudlY egreerrrents, mortgagee, deeds of trust, aecurUy deeds, edlateral mortgages. and all other intruments, egreemenb and documents, whether now or hereafter existing, executed in cormectton with the Irxlebtedrress. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERIC OF ANY COURT IN THE COMMONWEALTH OF PEPkVSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOt1NTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND AM AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHEF INTEREST FOR FCOLLECTION BUT N ANYY EVENT~LESS THAN FNE HU DAW~D)OLLAR3 (f600) ON WHICH JUDGMENT t~ JUDGMRENT'S ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; ANb FOR SO DOING, THiS GUARANTY OR A COPY OF THIS GUARANTY VERIFlED BY AFFlDAVIT SHALL Bf SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOF SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TiME TO TIME ANO AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RKiHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSbN OF JUDGMENT AND STATES THAT EITHER A REPRESENTATfVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. COMMERCIAL GUARANTY Loan No: 500029913 (Continued) p~~ q , EACH UNDER~GNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROYl8WNS OF THIS GUARANTY AND AGREES TO IT8 TERMS. IN ADDtTK)N, EACH GUARANTOR UNDERSTANDS THAT TINS GUARANTY 18 EFFECTIVE UPON QUARANTOR'S EXECU110N AND DELIVERY OF TH18 GIiARANTY TO LENDER AND THAT THE GUARANTY WNl CONTINUE UNTN_ TERMINATED Nr THE MANNER SET FORTH IN THE SEC710N Tfl1,ED "DURATN2N OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER N3 NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED MAY 24, 2005. TENS GUARANTY N3 liIVEN UNDER SEAL AND R N3 INTENDED THAT THIS GUARANTY 18 AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: A' `~:}:< <:>>>` >.. . 1 INDIVIDUAL ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA .4/ ) ~ COUNTY OF ) ~ ~~ `7~ his, ~,e ~ day a "''y , 20 y ~ y . before me `~7 .the underalOned Notary , persorurYy appeared MalOorzad 8ud41. known m me a Y proven to be the person whose name is subscribed to the witl~in instrument, and ~~krwwledged chat he or she e~cecuted the seune for fhe purposes there contained. In wNnaSeM~`w ofNclal seal. CorrdsOtsdds, MoIryPRbb byre 80101, Ls~MI?df1 ~Y iMYOptrr+Melor-Jiw 19, ti~iB MwnUe., P~ ~ Notaries Notary Public in and for the State of ~ ~,,, ~.- s WBI MID lr~q, Y". ~lLOC.OOf D#• YYIIW !Y"Ilelll !aM/w, Mt 1/A, mOt M M/Y IIwIM. • M l'IpNN1mfC TRdOM /MRy1M DISCLG. JRE FOR CONFESSION OF JDGMENT Retereraee in the shaded area are for t_ender's we oNyend do rat the ~ Ar,y ~, ~,e coMainir,g has been orrdtted to text Declarant: cadn~asars Group, ktic. lT1N: 2s~ee3aeB) Lender: ~! Esst TrindN Rosd Mschanicsbur0, PA 17060 doaxnent >o any partlcwler loan a Item. ~ llnitauores. Mid Penn Bank Carllsla Pib Oflica ~ CarNeN PNoe AAeohanieeburs, PA 17066 DISCLOSURE FOR CONFESSION OF JUDGMENT T}{E UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS = L_ DAY OF _ pROMMSORY NOTE FOR >j120,000.00 OBLIGATING DECLARANT TO REPAY THAT AMOUNT. A. 7HE UNDERSGNED UNDERSTANDS THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST DECLARANT IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANT8 RKiHTS TO ADVANCE NOTICE AND TO A HEARpVG TO CONTEST THE VALIDrTY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE NOTE, THE UNDERS~NED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAMNG THESE RIGHTS, NTd.UDING ANY RIGHT TO ADVANCE NOTKS: OF THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSt-Y AGREES AND CONSENT8 TO LENDER'S ENTERING ,wpm pECLARANT BY CONFESSK)N AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INI'riALS: '~ ., B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GMNG LENDER THE RKiHT TO ENTER JUDGMENT AGAIN$'T DECURRANT MRrBOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMR LENDER, AFTER ENTRY OF JUDGMENT, AGAMI WITHOUT ERHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDtiMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWIBE SEIZING DECLARANTS PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGiMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANTS RIGHTS TO ADVANCE NOTK;E AND A BEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, Lg KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHT'S, AND THE WNDERSIGNED EXPRESSLY AGREES AND CONSENT'S TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANN D BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE. INITIALS: ~~' ... ."~' C. AFTER HAVING READ AND pETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, THE UNDERSIGNED REPRESENTS THAT: INITIALS 1. DECLARANT WAS REPRESENTED BY DECLARANTS OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE ~' 2 A REPRESENTATIVE OF LENDER $pECIFlCALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO DECLARANT'S ATTENTION. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCL~IRE L4 AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: CADMASTERB GROUP, INC. ww na urea ~w.. uamor aw. IMr~ wr.w rrr.. w r7, sot M wpr IY,rv.a • M LtC71!Vl,oe,.,e mass nFtt,,lae Exhibit "E" DISCLG oJRE FOR CONFESSION OP .i1DCaMENT in the shaded area are for I.erder's use ordy and do not Iknk the applicebiNY d this document m any particular loan or item. e,w Nam ^MYnaw mr1t91f1111O ""~ has been OrT1lltBd-ddue m teat lenytl'- Ifrrdoeti0ns. Borrower: Cadmaslara Groff, Inc. (TIN: Z5.1863466) Lender: fwd Perm Bank 4698 Eat Trlndla Road CarllalaPila Oflk:e Meclranipbury, PA 17060 4672 CarBale Fib AAschanicsbury, PA 17056 Declarant: Stanblaw Z Suriol (SSN: 39864078'1) 4686 East Trinda Road tMohankaburE, PA 17060 DISCLOSURE FOR CONFESSION OF JUDGMENT 1 AM EXECUTING, THIS .~- DAY OF I"l d.~.J • ~ a ~ • A OUAAAMY OF A PROSY NOTE FOR :120,000.0 OBLIGATING ME TO REPAY THAT AMOUNT. ~ A. 1 UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT pROY18K?N THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WRHOUT ADVANCE NOTICE TO ME AND WRHOUT OFFERING ME AN OPPOR7UNTTY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEBILi FULLY AWARE OF MY RIGHT'S TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINt3'T ME UNDER THE GUARANTY, I AM Ip40WMIQLY, O~ITELLIQENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY R~HT TO ADVANCE NOTICE OF THE ENTRY OF JUDtiMENT, AND I EXPRESSLY AGREE AAA CONSENT TO LENDERS ENTERING J AGANST IIE BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INmALS: B. I FURTHER UNDERSTAND THAT IN ADDTTK>N TO GMNO LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WRHOUT ADVANCE NOTICE OR A HEARMKK,t, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CON1'AMiS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WmiOUT ERHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT 8Y FORECLOSING UPON, ATTACHING, LEVYING ON, TAILING POSSESSION OF OR OTHERWISE 8E121NQi MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MIY RIGHTS TO ADVANCE NOTICE AND A FANG AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUOtiMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAMNG THESE RIGHTS, AND 1 EXPRESSLY AGREE AND COIMiENT TO LENDER'S IAAMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE INmaLS: ~~, ~' ~; C. AFTER HAVING READ AND DETERMNED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INRIALING EACH STATFJNENT THAT APPLIES, I REPRESENT THAT: INITIALS L 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTKIN Wmi THE GUARANTY. ~`~ 2 A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESEON OF JUDGMENT PROVISION IN THE GUARANTY -T TO MY ATrENT~N. D. 1 CERTIFY THAT MY ANNUAL INCOME EXCEEDS =10.000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED M WHEN I INITIALED AND SKiNED R; AND THAT I RECEIVED A COPY AT THE TIME OF SK,INING. THIS DISCLOSURE IS GNEN UNDER 8EAL AND R IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: :>~~» y:?t;';; ~) Ulas~ Fllo IMia w. limas ap.,rw Rrew arr... ,..Ira. ss. N sfr nnr..a • M L10Na)UOS.1a: maan Exhibit "F" DISCLL~JRE FOR CONFESSION OF ,UDGMENT References in the shaded area are for Lender's use ordy and do rwt limit the sPPIk~bAny of tt~e document >D any particular loan or nem. Any itBrrl above cor~ining ""'" has been OrrUtted due t0 tart lenptl- Ii-nitaticns. Borrower: Cadrnaet«~s Gra+P, Inc. (TIN: 25-188368) Lender: Mid Penn Bank 46f18 Etst TNndM Road Cirllsle Plke Oftice AAsdt~lcsburp, PA 17060 48?2 Carpels PBes Mechank~burrg, PA 17065 Declarant: AAalgorrata Sudol (SSN: ia2.88-3142) 4702 Carlisle Pllas MecFgnicslwry, PA 17055 DISCLOSURE FOR CONFESSION OF JUDGiMENT I AM EXECUTING, THIS ~_ DAY OF _yM~ . 20 /~1.. A GUARANTY OF A PROMSSOFIY NOTE FOR ~120,000A OBLKiATpVG ME TO REPAY THAT AMOUNT. ~ A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME pV COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTK.E TO ME MID WR'HOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. iN EXECUTING THE GUARANTY- BEprG FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CQNTEST THE VALp71TY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWUiGLY, INTELLK~ITLY, AND VOLUNTAREY WAIVING THESE RKiIRS, INCLdJDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFES810N AS PROVIDED FOR IN THE CONFES810N ~ JUDGMENT PROVISION. B. 1 FURTHER UNDER5rAN0 THAT IN ADDmON TO GIVING LENDER THE RIGHT TO ENTER JUDGI~NT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAprB LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE BFJZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RKiHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, 1 AM KNOWINGLY, INTF.LUGENTLY AND VOLUNTARILY WAMNG THESE RIGHT'S, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IM~OIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE )~~~~ INmALS: ; ~~~N"' C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, I REPRESENT THAT: 1. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTK)N WITH THE GUARANTY. Ks 2. A REPRESENTATIVE OF LENDER ~ECIFlCALLY CALLED THE CONFESSION OF JUDGMENT PFKIVISION IN THE GUARANTY TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL MICOME EXCEEDS:10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INMTIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT-THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: .~.:.. n :Sea UNM Plq lwii6 Mr. ,/Lp.O,f CaM. MM1ni NrW Mirr. Ma 11,7, YM. M 1-/s. MraL . M L1dNlUORlC 1FP1 ~1~ Exhibit "G" CERTIFICATION I hereby certify that the precise address of Plaintiff is 349 Union Street, Millersburg, PA 17061. I further certify that the last known address of the Defendants is: 931 Willcliff Drive, Mechanicsburg, PA 170550 I further certify that the underlying transaction, as evidenced in part by the exhibits attached to the Complaint in Confession of Judgment Exhibit "A" attached hereto, is a commercial transaction. Dated: a~ , 2007 'stian S. Daghir, squire Supreme Court ID 47741 105 North Front Street Harrisburg, PA 17101 Attorney for Plaintiff ., ,~ 1 0 m m N 4'' ~~ '~-' o -- - ~ - ~.: t;, t - ~,~ - '- _ - ~ -- =-~ '~~ -~ ~~ •.-~ r' h MID PENN BANK, Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Amount Due $139,668.15 Interest from 8/15/07 @ 9.5% Attorney's Comm. $ Costs $ NOTICE OF JUDGMENT AND EXECUTION REQUIRED BY RULE 2958.1 Notice of Defendant's Rights To: Cadmasters Group, Inc., Stanislaw Z. Sudol and Malgorzata Sudol A judgment in the amount of $139,668.15 has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE. ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ..' .. Central Pennsylvania Lawyer Referral Service 213 A North Front Street Harrisburg, PA 17101 1-800-932-0356 ,,~ ~ / Christi n S. Dagh ,Esquire Etzweiler and Associates Supreme Court I.D. #47741 Attorney for Plaintiffs 105 N. Front Street Harrisburg, PA 17101 (717) 234-5600 ~ ~ O c-. _ ~ -.~ -rt --. ~ :~` ~;`~ ~ . C;7 f'fi"'f1 , , , ; --+ c~ w ~ Christian S. Daghir, Esquire Etzweiler & Associates 105 North Front Street Harrisburg, PA 17141 (717) 234-~40 Attorney for Plaintiff MID PENN BANK Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 0~- SlaB C~v~1 ~~` CIVII. ACTION -LAW To: Cadmasters Group, Inc., Stanislaw Z. Sudot and Malgorzata Sudol, Defendants You are hereby notified that on August ~, 2007, the following Judgment has been entered against you in the above-captioned case: Judgment by Confession in the amount of $139,668.15 which includes interest to August 15, 2007. Date: August ~, 2007 ~ Protho tary I hereby certify that the names and addresses of the proper persons to receive this notice under Pa.R.Civ.P. 236 are: /' • Cachnasters Group, Inc. 4698 E. Trindle Road Mechanicsburg, PA 17050 Stanislaw Z. Sudol 931 Willcliff Drive Mechanicsburg, PA 17050 Malgorzata Sudol 931 Wilkliff Drive Mechanicsburg, PA 17050 Christian S. ,Esquire Attorney for Mid Penn Bank Cadmasters Group, Inc., Stanislaw Z. Sudol and Malgorzata Sudol, Defendidos Por este medio se le esta notificando ue el el/la siguiente (Orden), Decreto), (Falb) ha mencionado en d epigrafe. de de12007, sido anotado en contra soya en el caso Judgment by Confession in the amount of $139,668.15 which includes interest to August 15, 2007. FECHA: August , 2007 PrOtODOtarlO Certifico que la siguiente direction es la del defendios sengun indicada en el certificado de residencia: Cadmasters Group, Inc. 4698 E. Trindle Road Mechanicsburg, PA 17050 Stanislaw Z. Sudol 931 Wiilcliff Drive Mechanicsburg, PA 17050 Malgorzata Sudol 931 Willcliff Drive Mechanicsburg, PA 17050 Kristian S. Daghir, wire Attorney for Mid Fenn Bank G:\WPDOCICI V.FLEII~B•BavLdl't-Writ SHERIFF'S RETURN - REGULAR f, CASE NO: 2007-05128 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL DAVID MCKINNEY Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE & COMPLAINT IN was served upon CADMASTERS GROUP INC DEFENDANT the at 1528:00 HOURS, on the 29th day of August 2007 at 4698 E TRINDLE RD MECHANICSBURG, PA 17050 by handing to STANISLAW SUDOL (OWNER) a true and attested copy of NOTICE & COMPLAINT IN together with CONFESSION OF JUDGEMENT & EXECUTION REQUIRED BY RULE 2958.1 and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 13.44 Affidavit .00 Surcharge 10.00 .00 Sworn and Subscibed to before me this So Answer '~E~ • R. Thomas Kline 08/30/2007 EARL R ETZWEILER Byc ~ day Deput S eriff of A.D. SHERIFF'S RETURN - REGULAR CASE NO: 2007-05128 P f COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL DAVID MCKINNEY Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE & COMPLAINT IN SUDOL STANISLAW Z was served upon the DEFENDANT at 1528:00 HOURS, on the 29th day of August 2007 at 4698 E TRINDLE ROAD MECHANICSBURG, PA 17050 STANISLAW SUDOL by handing to a true and attested copy of NOTICE & COMPLAINT IN CONFESSION OF JUDGEMENT & EXECUTION REQUIRED BY RULE 2958.1 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 gli4~b7 G~,,.. 16.00 So Answers: .~E~ " /• R. Thomas Kline 08/30/2007 EARL R ETZWEILER Sworn and Subscibed to By: ~ L before me this day Deputy Sherif of A.D. SHERIFF'S RETURN - REGULAR .CASE N0: 2007-05128 P ,+ COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL DAVID MCKINNEY Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE & COMPLAINT IN was served upon SUDOOL MALGORZATA the DEFENDANT at 1528:00 HOURS, on the 29th day of August 2007 at 4698 E TRINDLE ROAD MECHANICSBURG, PA 17050 by handing to STANISLAW SUDOL (HUSBAND) a true and attested copy of NOTICE & COMPLAINT IN CONFESSION OF JUDGEMENT & EXECUTION REQUIRED BY RULE 2958.1 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 q1~'~ ~~~ /' 16.00 Sworn and Subscibed to before me this day So Answers: ~~E~ - /' R. Thomas Kline 08/30/2007 EARL R ETZWEILER By. Deputy heriff of A.D. t ~ IN THE COURT U~, COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION PRAECIPE FOR WRIT OF EXECUTION MID PENN BANK, 349 Union Street, Millersburg, PA 17061, Plaintiff vs. CADMASTERS GROUP, INC. 4698 E. Trindle Road, Mechanicsburg, PA 17050, STANISLAW Z. SUDOL and MALGORZATA SUDOL, 931 Willcliff Drive, Mechanicsburg, PA 17050, Defendants And PNC BANK 4242 Carlisle Pike Camp Hill, PA 17011, Garnishee And MEMBERS 1sT FEDERAL CREDIT UNION, 5000 Louise Drive, Mechanicsburg, PA 17050, Garnishee IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 07-5128 Civil Term Amount Due $139,668.15 Interest from 7/6/07 @ 9.5% Attorney's Comm. $ Costs $ CONFESSED JUDGMENT TO THE PROTHONOTARY OF SAID COURT: The undersigned hereby certifies that the below does not arise out of a retail installment sale, contract, or account based on a confession of judgment, but it if does, it is based on the appropriate original proceeding filed pursuant to act 7 of 1966 as amended; and for real property pursuant to Act 6 of 1974 as amended. Issue Writ of Execution in the above matter to the Sheriff of Cumberland County, for debt, interest and costs, upon the following described property of the defendants: All inventory, chattel paper, accounts, equipment and general intangibles, whether any of the foregoing is owned now or acquired later, all accessories, additions, replacements, and substitutions relating to any of the foregoing; all records of any kind relating to any of the foregoing; all proceeds relating to any of the foregoing (including insurance, general intangibles and other account proceeds. G:1W P~DO(lCl V.FLEQvIP6-BaurLolR-W ril f PRAECIPE FOR ATTACHMENT EXECUTION Issue Writ of Attachment to the Sheriff of Cumberland County for debt, interest and costs, s above, directing attachment against the above-named Garnishees for the following property (if real estate, supply six copies of the description; supply four copies of lengthy personalty list): All checking accounts, savings accounts, certificates of deposit and any other accounts in the name(s) of any or all of the above defendants and all other property of the defendants in the possession, custody or control of the said Garnishees. Index this Writ against the Cadmasters Group, Inc., Stanislaw Z. Sudol and Malgorzata Sudol, Defendants, and against PNC Bank and Members 1ST Federal Credit Union, Garnishees as follows: Amount due $120,000.00 Interest from 4/26/07-8/15/07 a~ 9.5% $ 6,460.00 Late fees and charges 562.15 Attorney collection fee 12,646.00 (Costs to be added) Total $139.668.15 Plus additional interest and costs after 8/15/07. ~ , DATE: October ~7, 2007 Signature 1~~ Christian S . Daghir, squire Address 105 North Front Street Harrisburg, PA 17101 Attorney for Plaintiff Telephone (717) 234-5600 Supreme Court I. D . #47741 G:1 W P1DOCICI V , F1.blMPB•Ban ~off1-Writ .~ ~~ TI ' ~ ~ ~ ~ '.Fi ~ ~ l . v` ' .` -b , ~ -~- ~ t31 X1'4 gj 0 ^~ ~ ,, ~ _ ~~ r.." - ^ ; ~-~s~, ~ ~' -~, o Q ~ `~y ~ s ,_.- ~ ~ v ~ ~ , _~ ~ ~ o ~- WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-5128 Civil CIVIL ACTION -LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due MID PENN BANK, Plaintiff (s) From CADMASATERS GROUP INC, 4698 E. Trindle Road, Mechanicsburg, PA 17050 STANISLAW Z. & MALGORZATA SUDOL, 931 Willcliff Dr., Mechanicsburg, PA 17050 (1) You are directed to levy upon the property of the defendant (s)and to sell all inventory, chattel paper, accounts, equipment and general intangibles, whether any of the foregoing is owned now or acquired later, all accessories, additions, replacements, and substitutions relating to any of the foregoing; all records of any kind relating to any of the foregoing; all proceeds relating to any of the foregoing (including insurance, general intangibles and other account proceeds) . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: PNC BANK, 4242 Carlisle Pike, Camp Hill, PA 17011 MEMBERS 1sT FCU, 5000 Louise Drive, Mechanicsburg, PA 17050 All checking accounts, savings accounts, certificates of deposit and any other accounts in the name(s) of any or all of the above defendants and all other property of the defendants in the possession, custody or control of the said Garnishees. and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $120,000.00 L.L. $.50 Interest from 4/26/07 - 8/15/07 @ 9.5% - $6,460.00 Atty's Comm % Due Prothy $2.00 Atty Paid $127.94 Other Costs $562.15 -late fees and charges $12,646.00 -attorney collection fee Plaintiff Paid Date: 10-22-07 5 urtis R. Long, Prothon ry (Seal) By: Depu REQUESTING PARTY: Name CHRISTIAN S. DAGHIR, ESQUIRE Address: ETZWEILER & ASSOCIATES 105 NORTH FRONT STREET HARRISBURG, PA 17101 Attorney for: PLAINTIFF Telephone: 717-234-5600 Supreme Court ID No. 47741 + ~ MID PENN BANK vs. IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA N0.07-5128 Civil Term CADMASTERS GROUP, INC. CIVIL ACTION -LAW STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF DAUPHIN ) Christian S. Daghir, Esquire, being duly sworn according to law deposes and says that he makes this affidavit on behalf of the within Plaintiff, being authorized so to do, and that he avers that defendants are not in the military or naval service of the United States or its Allies, or otherwise within the provisions of the Soldiers and Sailors Civil Relief Act of Congress of 1940 and its amendment. Respectfully Submitted, ETZWEILER AND ASSOCIATES y Christian S. Daghir, Es uire Sup. Ct. I.D. No. 47741 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 Sworn and Subscribed to before me this 1st day of October, 2007. ~~ CON11~lOl~iV1l~AL'~ 6~ ~AWIA L_ --_~'_St~~- ~ NOTARIAL SEAL `~,NOta Public Patty L. Strohecker, Notary Public City of Harrisburg, Dauphin County My commission expires January 06, 2011 G:\W %DOC\CI V.FLEIMPB-Bnn-rhof72-writ ~ ~~' ~ ~ MID PENN BANK vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA ) SS. COUNTY OF DAUPHIN ) Christian S. Daghir, Esquire, being duly sworn according to law deposes and says that he makes this affidavit on behalf of the within Plaintiff, being authorized so to do, and that he avers that defendants are not in the military or naval service of the United States or its Allies, or otherwise within the provisions of the Soldiers and Sailors Civil Relief Act of Congress of 1940 and its amendments. NO. 07-5128 Civil Term Respectfully Submitted, ETZWEILER AND ASSOCIATES B . ~~ ~ Y , Christian S. Daghir, Esquire Sup. Ct. I.D. No. 47741 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 Sworn and Subscribed to before me this 1st day of October, 2007. ,~ COtNlv10~~ ~ _ ~~LVAr~A ., L--- . -- `'`~~~- ' _, NOTARIAL SEAL .`Nota Public Patty L. Strohecker, Notary Public City of Harrisburg, Dauphin County My commission expires January 06, 2011 c:~wr~ooc.~civ.rl.~n~rs-e,~„~~~om-w~~ MID PENN BANK, Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL, Defendants And PNC BANK, Garnishee And MEMBERS 1St FEDERAL CREDIT UNION, Garnishee IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 07-5128 Civil Term Amount Due $139,668.15 Interest from 8/15/07 @ 9.5% Attorney's Comm. $ Costs $ TO MEMBERS 1ST FEDERAL CREDIT UNION, GARNISHEE: ~hns~,ue~a ~v INTERROGATORIES TO GARNISHEE A. You are required to file answers to the following interrogatories within twenty (20) days after service upon you. Failure to do so may result in judgment against you. The word "Defendant" means any one or more of the Defendants named above. B. While service of Writ upon the Garnishee attaches all property of the Defendant subject to attachment which is then in the hands of the Garnishee, it also attaches all property of the Defendant which comes into the Garnishee's possession thereafter, until Judgment is entered against the Garnishee. For example, the resultant liability of a Garnishee-Bank would not be measured by the balance of the debtor's account, either at the time of service of the Writ or at the time of Judgment against the Garnishee, but rather by the amounts deposited and withdrawn during the intervening period. C. These Interrogatories are of a continuing nature, therefore, you shall be required to file supplemental Answers to Interrogatories in the event that there is any subsequent change in the information set forth in your Answers. G\WPIDOCICIV.FLEUIYB-Baia J~oIR-Writ 1. At the time you were served or at any subsequent time, did any one or all of the Defendants maintain any savings, checking or any other type of account with you or with regard to which the Defendants were signatories? ~~es ANSWER: 1 D0~] i `~ 5-~in ~sb+tti 41~~~ dry-c,Su,b~l ~, _ ~~- c,~.~~ed 3-q-q8 SU~t~'S 12.~ct5~ //,, II//,~~vrz~.S+~D i 5'1"O~11S~14`~ti l~""J 88•'~~O ' o~e.~v-~ It-30•g2 sOty togs 3 t -_ -~ _ a~.. Ct~ - 5d S2 . (01 - o~d ~~i1~ _ $ - o~er~d t0.2~~-~1 pS Ot1 SaVt~lC~s ND W' ~~ 1yt-~17A`Jc1~1 t~;as Q.-Iransfer 1a loan - ter-~-cT- 1A~ wt~dr~a.i lr~ c~w~ ~v-31-v~ ~i2aoo~ q31 W ~I1~I~~Pf Dr. yCvgs E •Ti"tndlL (zcl r~eGnou,~cSb>~ p~ t~oy~ tv~ec,4~,~csbv~~r Pa r~os~ In the event that the answer to Interrogatory No. 1 is in the affirmative, set forth separately for each such account the following: a. The name or names in which the account is maintained; b. The balance in the account as of the date of service; c. The name and address of each signatory to the account; d. The date the account was first opened; e. The date and amount of the last withdrawal from said account; and f. The account number. I $ ~q ~ 5 +rUt^i~' S~t~ £ 1`~A,1 Ot-Z~S~ ~ -' q31 tiVt IIC1~4-F ])Y . Z W9 ~ ri~ec~,afi~cs~~J X0.1-76.5 ANSWER: - o ~~J j 2- 31- ~ ~ IuS~ VV-~ t d-10-0~ C1000 •b0~ G:1WPV7pC1CIV.PLEIMPB-BwvLo1R-Writ 2 2. At the time you were served or at any subsequent time was there in your possession, custody or control or in the joint possession, custody or control of yourself and one or more other persons, any property, certificates, chooses in action, or security of any kind or nature owned solely or in part by any one or all of the Defendants? ANSWER: l v" If the answer to Interrogatory No. 2 is in the affirmative, set forth separately with regard to each property, certificate, chose in action or security owned solely or in part by any one or all of the Defendants the following: a. A description; b. The date it came into your possession; c. The name and address of all persons or entities having any interest therein; and d. The value thereof. ANSWER: 3. At the time you were served, or at any subsequent time, did you owe any one or all of the Defendants any money or were you liable to Defendants on any negotiable or other written instruments? ANSWER: ~ \ In the event that the answer to Interrogatory No. 3 is in the affirmative, set forth separately with regard to each obligation due and owing to the Defendants or any of them the following: a. The amount for which you are liable; b. The name and address of each person, in addition to the Defendants, to whom you are alsa liable on the same obligation; c. The date the obligation was incurred; and d. In the event that any payment has been made on the obligation, the dates and amounts of all such payments and the name of the payee or payees. ANSWER: G:\WY~DOCICIV.fLE1MPB-Ban~1~oIR-Wm 4 4. At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or in part by any one or all of the Defendants or in which any one or all of the Defendants held or claimed any interest? ANSWER: ~~ In the event that the answer to Interrogatory No. 4 is in the affirmative, set forth separately with regard to each item of property the following: a. A description; b. The value; c. The date it came into your possession; d. In the event that there are any other persons having any interest in the property, set forth the names and addresses of such persons; and e. In the event that any portion of the property was released to any one or all of the Defendants or anyone acting on behalf of any one or all of the Defendants, set forth the date upon which the property was released, a description thereof, and the value of that which was released. ANSWER: 5. At the time you were served or at any subsequent time did you hold as fiduciary, any property in which any one or all of the Defendants had an interest? ANSWER: ~1D In the event that the answer to Interrogatory No. 5 is in the affirmative, set forth separately with regard to each item of property held by you as fiduciary the following: a. A description; b. The value; c. The name and address of every person having an interest therein; and d. The date it came into your possession. ANSWER: I ^ 6. At any time before or after you were served, did any one or all of the Defendants transfer or deliver any property to you or to any person or place pursuant to your directions or consent? ANSWER: 1 ~o In the event that the answer to Interrogatory No. 6 is in the affirmative, set forth separately with regard to each payment, transfer or delivery the following: a. A description as to the property paid, transferred or delivered; b. The dollar amount of the money paid, transferred or delivered; c. The name and address of the person who paid, transferred, or delivered the same to you; d. The date of the payment, transfer or delivery; e. The reason for the payment, transfer or delivery; f. At whose direction the payment, transfer or delivery was made. ANSWER: c:~wr~ooc~civ.~.~unPe-a~~.~wrtz-w~i 7 7. At any time after you were served did you pay, transfer or deliver any money or property to any one or all of the Defendants or to any person or place pursuant to any one or all of the Defendants' direction or otherwise discharge any claim of any one or all of the Defendants against you? ANSWER: ~~ In the event that the answer to Interrogatory No. 7 is in the affirmative, set forth separately with regard to each payment, transfer or delivery the following: a. A description as to the property paid, transferred or delivered; b. The dollar amount of the money paid, transferred or delivered; c. The name and address of the person to whom same was paid, transferred or delivered; d. The date same was paid, transferred or delivered; e. The reason for the payment, transfer, or delivery; and f. At whose direction the payment, transfer or delivery was made. ANSWER: c:~w~ooncrv.~.~ea-e~~~~~oirz•wd~ g i ~ ..~ 8. At any time during the period from the moment of service of the Writ of Execution to the date of filing of the Answers to these Interrogatories, did any one or all of the Defendants maintain, deposit or assign with or to you any Certificates of Deposit, Letters of Credit, Mortgage, Note, negotiable instrument, Lease or chose in action? ANSWER: ^\~ In the event that the answer to Interrogatory No. 8 is in the affirmative, set forth separately with regard to each instrument the following: a. A description; b. The date and circumstances under which it came into your possession; c. The date it was released by you (if applicable); d. Where appropriate, the account number thereof; and e. The term, face value or amount set forth thereon. ANSWER: G:\WPDOCICIV.FLElMP6-BamLo1R•Wril 9 ~ M ~ ~ 9. If you are a bank or other financial institution, at the time you were served or at any subsequent time did the Defendant(s) have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which aze identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law? If so, identify each account and state the reason for the exemption, the amount being withheld under each exemption and the entity electronically depositing those funds on a recurring basis. ~~ ANSWER: y ~ ~. ~ 10. If you are a bank or other financial institution, at the time you were served or at any subsequent time did the Defendant(s) have funds on deposit in an account in which the fiends on deposit, not including any otherwise exempt funds, did not exceed the amount of the general monetary exemption under 42 Pa. C.S. §8123? If so, identify each account. ~y ~ I ~a~~ ANSWER: U a S~ ~~ ~ Z~ "I~ G:\WPnoc\cIV.FLe\am6-BnmLo1R-Wri\ 11 y 4 e • ETZWEILER AND ASSOCIATES ~,~ ~ By ~ ;~ Christian S. Daghir, uire 105 N. Front Street Harrisburg, PA 17101 (717) 234-5600 Attorney for Plaintiff Dated: October 17, 2007 G:5WP1DOCICIV.FLEIMPB-Bmrhoffl-Writ 12 N ` _ ice. l ~i ~-.J r.... t i _ ' .f.. j : 4 h ~ ~ V ^~ : ~ _ _ ,a r ~~~1:9 ~..~/ V i ~ f~ ~J ~ rR. ~ ~~ .,.., v; '~ y ~. ~~~i ~VIID PENN BANK, Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL, Defendants And PNC BANK, Garnishee And MEMBERS 15t FEDERAL CREDIT UNION, Garnishee IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 07-5128 Civil Term Amount Due $139,668.15 Interest from 8/15/07 @ 9.5% Attorney's Comm. $ Costs $ ~. TO MEMBERS 1ST FEDERAL CREDIT UNION, GARNISHEE: INTERROGATORIES TO GARNISHEE 4"? ~~,~ c::,. 1 ~,~ r~ f _~'~ ~.ti.;3 ~.~ _.~ ~, .. ~... -.~_3 f_t.,F -I ~: -Y, = ; c~, A7 L .~ *~ ~ 1 i~ =~~ ~_-' .a„~ .'°~ A. You are required to file answers to the following interrogatories within twenty (20) days after service upon you. Failure to do so inay result in j udginent against you. The word "Defendant" means any one or more of the Defendants named above. B. While service of Writ upon the Garnishee attaches all property of the Defendant subject to attachment which is then in the hands of the Garnishee, it also attaches all property of the Defendant which comes into the Garnishee's possession. lhe~°eufter, until Judgment is entered against the Garnishee. For example, the resultant liability of a Garnishee-Bank would not be measured by the balance of the debtor's account, either at the tune of service of the Writ or at the time of Judgment against the Garnishee, but rather by the amounts deposited and withdrawn during the intervening period. C. These Interrogatories are of a continuing nature, therefore, you shall be required to file supplemental Answers to Interrogatories in the event that there is any subsequent change in the information set forth in your Answers. (;'1 W P~DOC\CI V. FLEVviI'B-Bai~iJ~ofR-5Vri1 ' 1. At the time you were served or at any subsequent time, did any one or all of the Defendants maintain any savings, checking or any other type of account with you or with regard to which the Defendants were signatories? ~1eS ANSWER: ~ 2C~~'S~ I C 0~] ~ ~ 5'~0.~~ -s ~~~ ti l~~y or z~-uSt~.~o 1 ~ o~e,~-~ I1-30-q2 Stun+slaw~ ~~~,~c~rz~-~~u,l~~l ~v~~qs'-_3 ~~.y~ a a S(~\l S - p- - v>>e.~~ed 3-a-q8 ~~~~,c~ 50S2.Co1 ©~~cl 1--30- ~... _ o ~~ec~ t0.2~._p1 (;~~,nq ~ ~ ~ ~~ W-ps oil savings ~~ lv+~'~d17111~~1(~ ti~US p,-I-rQ,nS~r fo loc~.r~ - ~~-~ ,ast ~,~t~lndt"(,tti.s~al l-~ c~1t~w~ -~"3i-v'1 ('t2i7•oo~ U31 W.I~CI-~P•F Dr, yCogs E .Ti' 1nc~LL f2cl IvleC},rl~llCSbv ~ ~~~ 1'1~~~ ~'V~~C/,~'Y~IiCS~~i~ 10. 1"l'0~ In the event that the answer to Interrogatory No. 1 is in the affirmative, se~foi-th separately for each such accow.lt the following: a. The name or names in which the account is maintained; b. The balance in the account as of the date of service; c. The name and address of each signatory to the account; d. The date the account was first opened; e. The date and amount of the last withdrawal from said account; and f. The account number. i g O~ ~ ~ ~ ~ ~ ~~ rr,v~t 5ktbq ~ 1~~~,~ ~t zG+~S~G ~ -- q31 rv~ (~c Z ~~ ~ y~lec~ 1a~' csbuYr~ 10. l~ 65~ ANSWER: _ o ~~e~y ~ 2 - 3 I - ~ ~ SD~v l nos ~ I , ~ i-4~ . I ~ ~ ~US~ w-D to-IO-n~ ~~~oo~o.do) c:~wrv>or~crv.nn.~rn-~mv~~o~rz-w~;~ 2 2. At the time you were served or at any subsequent time was there in your possession, custody or control or in the joint possession, custody or control of yourself and one or more other persons, any property, certificates, chooses in action, or security of any kind or nature owned solely or in part by any one or all of the Defendants? ANSWER: ~~~ If the answer to Interrogatory No. 2 is in the affirmative, set forth separately with regard to each property, certificate, chose in action or security owned solely or in .part by any one or all of the Defendants the following: a. A description; b. The date it came into your possession; c. The name and address of all persons or entities having any interest therein; and d. The value thereof. ANSWER: G:\ W P1DOC~CI V.FLEIMPB-BanrhofR-1Yrii 3. At the time you were served, or at any subsequent dine, did you owe any one or all of the Defendants any money or were you liable to Defendants on any negotiable or other written instruments? ANSWER: ~~ In the event that the answer to Interrogatory No. 3 is in the affirmative, set forth separately with regard to each obligation due and owing to the Defendants or any of them the following: a. The amount for which you are liable; b. The name and address of each person, in addition to the Defendants, to whom you are also liable on the same obligation; c. The date the obligation was incurred; and d. In the event that any payment has been made on the obligation, the dates and amounts of all such payments and the name of the payee or payees. ANSWER: G9 W P1DOCICI V.FLEIMPB-BanviofR-W rii `'~ 4. At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or in part by any one or all of the Defendants or in which any one or all of the Defendants held or claimed any interest? ANSWER: ,, `~ Iv In the event that the answer to Interrogatory No. 4 is in the affirmative, set forth separately with regard to each item of property the following: a. A description; b. The value; c. The date it came into your possession; d. In the event that there are any other persons having any interest in the property, set forth the Haines and addresses of such persons; and e. In the event that any portion of the property was released to any one or all of the Defendants or anyone acting on behalf of any one or all of the Defendants, set forth the date upon which the property was released, a description thereof, and the value of that which was released. ANSWER: G:\\4PDOC1C1 V.FLEIM PB-B:mr.6ofi?-\4ril 5. At the time you were served or at any subsequent time did you hold as fiduciary, any property in which any one or all of the Defendants had an interest? ANSWER: ~ `(~ ~`.I V In the event that the answer to Interrogatory No. 5 is in the affirmative, set forth separately with regard to each item of property held by you as fiduciary the following: a. A description; b. The value; c. The name and address of every person having an interest therein; and d. The date it came into your possession. ANSWER: 6 G:1 W P10001Ci V.FLEWiPB-BanzlioR2- W ril 6. At any time before or after you were served, did any one or all of the Defendants transfer or deliver any property to you or to any person or place pursuant to your directions or consent? nrrsv,~x: N~ In the event that the answer to Interrogatory No. 6 is in the affirmative, set forth separately with regard to each payment, transfer or delivery the following: a. A description as to the property paid, transferred or delivered; b. The dollar amount of the money paid, transferred or delivered; c. The name and address of the person who paid, transferred, or delivered the same to you; d. The date of the payment, transfer or delivery; e. The reason for the payment, transfer or delivery; f. At whose direction the payment, transfer or delivery was made. ANSWER: G:1WP1DOClCI V.FLEWIPB-BaniLolR-Writ 7. At any time after you were served did you pay, transfer or deliver any money or property to any one or all of the Defendants or to any person or place pursuant to any one or all of the Defendants' direction or otherwise discharge any claim of any one or all of the Defendants against you? ANSWER: In the event that the answer to Interrogatory No. 7 is in the affirmative, set forth separately with regard to each payment, transfer or delivery the following: a. A description as to the property paid, transferred or delivered; b. The dollar amount of the money paid, transferred or delivered; c. The name and address of the person to whom same was paid, transferred or delivered; d. The date same was paid, transferred or delivered; e. The reason for the payment, transfer, or delivery; and f. At whose direction the payment, transfer or delivery was made. ANSWER: c:~wa~oc~civ.~-EV~nra-e:,,,.~,ort~avdi g 8. At any time during the period from the moment of service of the Writ of Execution to the date of filing of the Answers to these Interrogatories, did any one or all of the Defendants maintain, deposit or assign with or to you any Certificates of Deposit, Letters of Credit, Mortgage, Note, negotiable instrument, Lease or chose in action? ANSWER: N~ In the event that the answer to Interrogatory No. 8 is in the affirmative, set forth separately with regard to each instrument the following: a. A description; b. The date and circumstances under which it carne into your possession; c. The date it was released by you (if applicable); d. Where appropriate, the account number thereof; and e. The term, face value or a.inount set forth thereon. ANSWER: G:\W P~DGCICI V.FLEUviPB-B~miJiofl?-\4rii 9 ' 9. If you are a bank or other financial institution, at the time you were served or at any subsequent time did the Defendant(s) have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law? If so, identify each account and state the reason for the exemption, the amount being withheld under each exemption and the entity electronically depositing those funds on a recurring basis. .~rrswER: ~1U G:1WPIDOCICI V.REIMPB-Bouvhofi2-\Vril ~ O 10. If you are a bank or other financial institution, at the time you were served or at any subsequent time did the Defendant(s) have funds on deposit in an account in which the funds on deposit, not including any otherwise exempt funds, did not exceed the amount of the general monetary exemption under 42 Pa. C.S. §8123? If so, identify each account. ANSWER: ~- ~1~ ~~~~~~ ~ 14 v~~~ C:1W P1DOCICI V.FLE~MPB•Ban~holi2-\4m 11 ETZWEILER AND ASSOCIATES tr ~ ,~ ~ ,i' `` ~~+ i._ j ,~~ Christian S. Daghir, uire 105 N. Front Street Harrisburg, PA 17101 (717) 234-5600 Attorney for Plaintiff Dated: October 17, 2007 6:1WP1DOC~CiV.FLEIMPB-BanzhofP_-Writ 1 ETZWEILER AND ASSOCIATES ATTORNEYS-AT-LAW 105 NORTH FRONT STREET >=[A.RRISBURG, PA 17101-1436 Office leours: Moir. Fri 8:00 drr~-5:00 p.nr. (717)234-5600 Earl Richard Etzweiler, Esquire Christian S. Daghir, Esquire 1:ip1,IF,4,X LINE (717) 896-3737 ' 225 Market Street Fax Line: (717) 23456I0 2 West Main Street Millersburg, PA 17061 Email Address: retzweilerCa~comcast.net Elizabethville, PA 17023 (717) 692-2519 (717) 362-8395 O,J}rce hours: Tues. and Fri. 4:00 p.m-8:00 p.rn. Office Hours: Thurs. 7:00 p.m.-9:00 p.m. Sad 10:00 a.m-12:00 noon November 15, 2007 Charles J. McBreen, Security Manager Members 1 ~ Fedral Credit Union 5000 Louise Drive P.O. Box 40 Mechanicsburg, PA 17055 Re: Writ of Execution for Cadmasters Group -Stanislaw Sudol and Malgorzata Sudol Dear Mr. McBreen: In Item 1 f of your Answers to Interrogatories, you identified a joint account. Please Iet me know if the joint ownership is tenants in common or joint tenants with right of survivorship. We noticed that the Answers did not contain a Verification or Affidavit verifying the answers, identifying who completed the answers and that such person was authorized to do so. Please find enclosed an Affidavit which I have prepared. Please sign the AfiFidavit before a notary public and file it in the Office of Prothonotary of Cumberland County along with a copy of the Answers as previously filed. Very truly yours, Christian S. Daghir CSD:db Enc. aw~rnsE.xtxooni aas~mwpa AFFIDAVIT I, Charles J. McBreen, being duly sworn according to law, depose and say that I am authorized to make this Affidavit on behalf of Members lgt Federal Credit Union, being holder of the office of Security Manager with that company, and that I am an employee or agent of Members lst Federal Credit Union and have been authorized to make this Affidavit on its behalf and that the facts above set forth in the foregoing Answers to Interrogatories are true and correct to the best of my knowledge, information and belief and I expect to be able to prove the same at any hearing hereof. Members 1~` Fed~tal Chit U~ By Charles J. l~~fe~eea; Security Manager Sworn and subscribed before me this ~~~ day of November, 2007. N Public o ~,~t o~ P~rsYtvAxza Notarial Seal Jod~+ L~, Travis, Notary Public !fir A11--ert Twp„ Cumberland County My Commleeian ~xpiree Sept, 29, 20g1g Member, F~~nnaytvanta Assocletlen ~f Mateti~~ -r3 ... .._ , ~.~^ n4'~... R t ' L ..~' ~ ~- ... i . - 1 ', "S r • ("~ 4 ~ ' ~~ 1' ^ t ' " „J..s 7" ~... ~ `. F..,~ ire' S'~~ GAI.LOGi,y & LESSER, P,C By: Jon C. Sirlin, Esquire Identification No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (215) 864-9700 Attorney for Garnishee MID PENN BANK vs. C~MASTERS GROUP S~OL, AND MALGORZA A STANISLAW Z. and COL PNC BANK, NATION, GARIVISI-iEE ASSOCIATION, COURT OF CO MMON PLEAS COUNTY OF CU11~1BERLAND NO.07-5128 ENTRY OF APPEARANCE TO T~ PROTHONOTARY: Kindly enter my appe~'ance on behalf o the above-captioned matter. f PNC B~~ National Association, G arnishee, in Date: JON ~: Garnishee E`"~- ~ ~ ~T . C,._ ._..,,s ~ '~" ~. 'y .-.-- ` ~ ` r i 1' - ~, ...__ - . • . i.._ 'r- Christian S. Daghir, Esquire Etzweiler & Associates 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 Attorney for Plaintiff MID PENN BANK IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and M~-GORZATA SUDOL Defendants And MEMBERS 1ST FEDERAL CREDIT UNION, Garnishee TO THE PROTHONOTARY: NO. 07-5128 Civil Term • CIVIL ACTION -LAW Please dissolve the Writ of Execution in Attachment against MEMBERS 1ST F CREDIT UNION, Garnishee in the above matter. EDERAL Dated: November , 2007 Christian S . aghir, E ire Attorney for Plaintiff 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 G:\CI V.FLE\FORECLOS.FLE1mpb~cadmas7ers.upd ~ ~ o0 ~ O 'U v ~ t Y? a ~ ~~~aa -~.: -, ~= '. ~_~ g.., ,., ... ,~_ , .... . _. i _ , Z _ . . _ .~ r i _. [~'..1 ;: ..' .:....~ ,. L, .: V t MID PENN BANK Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants And MEMBERS 1~ FEDERAL CREDIT UNION, Garnishee IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 07-5128 Civil Term CIVIL ACTION -LAW PRAECIPE FOR ENTRY OF JUDGMENT AGAINST GARNISHEE TO THE PROTHONOTARY: Please enter Judgment in favor of Plaintiff and against the Garnishee, Members 1St Federal Credit Union, in the amount of $9,964.66, being the amount Garnishee admits in its Answers and Amended Answers to Plaintiffs Interrogatories in Attachment to be the property of Defendants, Stanislaw 5udo1 and Malgorzata Sudol, in its possession, i.e. -the amount of Nine Thousand Nine Hundred Sixty-Four and 66/100 Dollars ($9,964.66). TO CUMBERLAND COUNTY Prothonotary Dated: dl~Z~~~~ Christian S. Daghir, quire Supreme Court I.D. #47741 Attorney for Plaintiff Etzweiler & Associates 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 Cl:~~ V.~.~O~~'{.~.5.~{.~II1~Of~111i1C~Q6.N'~Id Q ~' a a a ar~ Z'7 fir; c ~ ~= a ~= .. Gr" :.- ~F:. `cJ `~ ~. ~=. ~..,. ~• ~`~' ~~ r.~ c~ ----~~ -~ R~'t~ N :[; Y tT ~LJ -r~ ~ ~; N ~~ L.J'1 ~ "< MID PENN BANK Plaintiff vs. CADMASTERS GROUP, INC. STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants And MEMBERS 1~ FEDERAL CREDIT UNION, Garnishee IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 07-5128 Civil Term CIVIL ACTION -LAW To MEMBERS 1ST FEDERAL CREDIT UNION. Garnishee: You are hereby notified that on ~Du. ~~ , 2007, the following Judgment has been entered against you in the above-captioned case. Judgment entered in the amount of $9 964.66. DATE: IUvt~ a.L. ~~7 Prothonotary I hereby certify that the name and address of the proper person(s) to receive this notice is: MEMBERS 1ST FEDERAL CREDIT UNION 5000 Louise Drive Mechanicsburg, PA 17050 ETZW ILER & ASSOCIATES r Christian S. Daghir, Es re Attorney for Plaintiff G'\CI V.FLE\FORECLOS.FLFmpb-cadmastas.wpd J y MEMBERS 1ST FEDERAL CREDIT UNION. Garnishee/a/as Por este medio se le esta notificando que el del 2007, el/la siguiente (Fallo) ha sido anotado en contra suya en el caso mencionado en el epigrafe. Judgment entered in the amount of $9,964.66. FECHA: Protonotario Certificao que la siguiente direccion es la del defendido/asegun indicada en al certificado de residencia: MEMBERS 1ST FEDERAL CREDIT UNION 5000 Louise Drive Mechanicsburg, PA 17050 ETZW LER & ASSOCIAT S Christian S. Daghir, s` re Abogado del Demandante G:\CI V.FLEIFORECLOS.FLE1mpb-radmaaas.wpd SIRLIN GALLOGLY & LESSER, P.C. By: Jon C. Sirlin, Esquire Identification No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (215) 864-9700 Attorney for Garnishee MID PENN BANK :COURT OF COMMON PLEAS COUNTY OF CUMBERLAND vs. CADMASTERS GROUP, INC., STANISLAW Z. SUDOL, AND MALGORZATA SUDOL N0.07-5128 and PNC BANK, NATIONAL ASSOCIATION, GARNISHEE ANSWERS TO INTERROGATORIES IN ATTACHMENT TO: MID PENN BANK, Plaintiff No. 2. Account titled Stanislaw Z. Sudol, Malgorzata Sudol has been restricted pursuant to this Writ. Pursuant to the terms and conditions of the deposit agreement between the bank and the depositor, the bank claims a priority lien in, and a right of set-off against the account consisting of $100.00 Legal Processing Charge, and allowing for the general monetary exemption under 42 Pa.C.S. § 8123 there is a balance of $2,187.67. In addition, pursuant to 42 Pa.C.S.A. Section 2503, garnishee attorneys fees are authorized in an amount to be determined and deducted from the attached funds. 3. - 6. No. 7. (Q) If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law? (A) No. 8. (Q) If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which the funds on deposit, not including any otherwise exempt funds, did not exceed the amount of the general monetary exemption under 42 Pa.C.S. § 8123? (A) No. Dated: Nov, 30. 2007 1;58PM PNC BANK 412-762-0248 VERIFICA'T'ION No. 1398 P. 1/5 The undersigned hereby verifies that I am an authorized representative of PNC Bank, N.A.; that the statements made in the foregoing Answer's to Interrogatories axe true and correct to the best of my knowledge, information and belief and that these statemennts are made subject to the penalties of 18Pa. C.S. x4904, relating to unsworn falsification to authorities. Re: Mid Penn Bank vs. Cadmasters Group Inc., Stanislaw Z Sudol dad Malgoaata Sudol Name Position DATE: .:. Lit-233946.1 ' . ~:. ' ~; ' . . ; ,; ... M . 1 c: ;s '~' ~ .„..J ~ r, ~~ I ~ ~~ \ ; ~ ~ ... ^~.~ ~ 'tl .. .. -CJ ' ~ i "Cq ~i: ' ~ r <_ .~ ~~~ ~~ SHERIFF'S RETURN - GARNISHEE SASE NO: 2007-05128 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK vs CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:00 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , CADMASTERS GROUP INC in the hands, possession, or control of the within named Garnishee PNC BANK 105 NOBLE BLVD CARLISLE, PA 17011 Cumberland County, Pennsylvania, by handing to DEB ELLIOTT (TELLER) personally three copies of interogatories together with 3 and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . true and made Sheriff's Costs: So answers: Docketing .00 Service .00 ~ ~ ~ Affidavit .00 R. '~homas Kline Surcharge .00 Sheriff of Cumberland County .00 . o o /~ ~~'l~% ~ 11/19/2007 Sworn and Subscribed to before me this day of By L_ " Deputy~Sheriff A.D SHERIFF'S RETURN - GARNISHEE .,CASE NO: 2007-05128 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:00 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , SUDOL STANISLAW Z in the hands, possession, or control of the within named Garnishee PNC BANK 105 NOBLE BLVD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to DEB ELLIOTT (TELLER) personally three copies of interogatories together with true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . Sheriff's Costs: ,~ Docketing p0 So ~iy~'a+C~ P Service .00 ` Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 11/19/2007 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D SHERIFF'S RETURN - GARNISHEE ,CASE NO: 2007-05128 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:00 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , SUDOOL MALGORZATA hands, possession, or control of the within named Garnishee PNC BANK 105 NOBLE BLVD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to DEB ELLIOTT (TELLER) personally three copies of interogatories together with 3 and attested copies of the within WRIT OF EXECUTION the contents there of known to Her . Sheriff's Costs: So a ' ~~~.~~ in the true and made Docketing . 0 0 c,dr~'~eG+C Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County . 0 0 0 0 /z//e jd ~ 11//19/2007 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D SHERIFF'S RETURN - GARNISHEE SASE NO: 2007-05128 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:10 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , CADMASTERS GROUP INC in the hands, possession, or control of the within named Garnishee MEMBERS 1ST FCU 1166 WALNUT BOTTOM ROAD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to JENNIFER ROBERTSON (TELLER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her Sheriff's Costs: So answers-, Docketing .00 Service . 0 0 :~~'~~eeLC ~.a~~ 2 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 . oo / ~ /a/~o`o~ 11/19/2007 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D SHERIFF'S RETURN - GARNISHEE ,CASE NO: 2007-05128 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:10 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , SUDOL STANISLAW Z in the hands, possession, or control of the within named Garnishee MEMBERS 1ST FCU 1166 WALNUT BOTTOM RD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to JENNIFER ROBERTSON (TELLER) ,, personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . •, ~~~Q' Sheriff's Costs: Docketing .00 Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 . o o /; al~~lp ~ ~ 11/19/2007 Sworn and Subscribed to before me this day of By Deputy Sheriff A.D SHERIFF'S RETURN - GARNISHEE :~.SE NO: 2007-05128 P . COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND MID PENN BANK VS CADMASTERS GROUP INC ET AL And now STEVE BENDER ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:10 Hours, on the 25th day of October 2007, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT _~ SUDOOL MALGORZATA in the hands, possession, or control of the within named Garnishee MEMBERS FIRST FCU 1166 WALNUT BOTTOM RD CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to JENNIFER ROBERTSON (TELLER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her Sheriff's Costs: Docketing Service Affidavit Surcharge Sworn and Subscribed to before me this So answers•~ .00 ~ ~ .00 R. Thomas Kline .00 Sheriff of Cumberland County .00 11/19/2007 day of By Deputy Sheriff A.D ~, ..'^ Christian S. Daghir, Esquire Etzweiler Associates 105 North ront Street Harrisburg, PA 17101 (717) 234-5 00 Attorney fo Plaintiff MID PENNI BANK IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V5. CADMAST RS GROUP, INC. STANISLA Z. SUDOL and MALGORZ TA SUDOL Defendants NO. 07-5128 Civil Term STATEMENT OF JUDGMENT $139,668.15 Entered August 27, 2007 KNOW ALL MEN BY THESE PRESENTS, that Mid Penn Bank, Plaintiff named in the above entitled Judgment, for and in the consideration of the sum of Five Thousand Five Hundred Dollars ($5,500.00) lawful money of the United States, to it paid by the Defendants, ~ Stanislaw Z. Sudol and Malgorzata Sudol, the receipt whereof is hereby does hereby forever acquit, exonerate, discharge and release Stanislaw Z. Sudol and Malgor~ata Sudol, as individuals, from the Lien of the above entitled 3udgment. The judgment re~aains open against Cadmasters Group, Inc. i be signed b March, 20 ATTEST: IN WITNESS WHEREOF, the said Mid Penn Bank has caused this Release to its appropriate officers and its Corporate seal to be affixed this o~~ day of MID PENN BANK By: Randall Klinger, JVi¢e President ..... ~,,, -4e~ `~ ~ ` ~ __.. o ~ ~° C~ ~; b ~~';~; ~ ~A ~ W t.~a Z a ~, T~ t'~ '-~ ~.. ~- -G Christian S. Daghir, Esquire Etzweiler & Associates 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 Attorney for Plaintiff MID PENN BANK IN THE COURT OF COMMON PLEAS Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA vs. NO. 07-5128 Civil Term CADMASTERS GROUP, INC. CIVIL ACTION -LAW STANISLAW Z. SUDOL and MALGORZATA SUDOL Defendants And PNC BANK, .- Garnishee PRAECIPE TO DISSOLVE ATTACHMENT TO THE PROTHONOTARY: Please dissolve the Writ of Execution in Attachment against PNC BANK, Garnishee in the above matter. ~ ., Dated: April 17, 2007 Christian S. Da ir, ~; Attorney for Plaints 105 North Front Street Harrisburg, PA 17101 (717) 234-5600 c:~wr~ooc~crv.~.~oasctos.~~~„a~a~~ar~.~~yd z ARR. ~ ~ , ~ O d '~' ~, ~ ~ . J ~ - ~ - ~ ,; ~: ~ _ ~ ~~ SIRLIN GALLOGLY & LESSER, P.C By: Jon C. Sirlin, Esquire, I.D. No.: 17498 1529 Walnut Street, Suite 600 Philadelphia, PA 19102 (215) 864-9700 Attorney for Garnishee MID PENN BANK COURT OF COMMON PLEAS COUNTY OF CUMBERLAND vs. CADMASTERS GROUP, INC., STANISLAW Z. SUDOL, AND MALGORZATA SUDOL N0.07-5128 and PNC BANK, NATIONAL ASSOCIATION, GARNISHEE :ATTORNEY I.D.#17498 BILL OF COSTS OF GARNISHEE, PNC BANK, NATIONAL ASSOCIATION Garnishee, PNC Bank, National Association, hereby bills the following costs to the fund attached, and will be satisfied therefrom as authorized by 42 Pa.C.S.A. Section 2503: Garnishee's fee pursuant to 42 Pa. C.S.A Section 2503: 300.00 Notary Charges: 0.00 Entry of Appearance: 0.00 Answers to Interrogatories: 0.00 Order to Discontinue or Satisfy: 0.00 Other: 0.00 JON C. SIRI Attorney for Costs are hereby taxed in the amount of $,'3~5b. d~ this ~~-day of , 2008. P OTHONOTARY BY: ~-? "".~ v '~~ C~ ~ __ -n 4:~ s ... -Pey i l i :..... : ~ __ 4 ~~ .- _.. __t R. Thomas Kline, Sheriff, who being duly sworn according to law, states this Writ is returned ABANDONED, no action taken in six months. Sheriff s Costs: Advance Costs: 425.00 311.23 Docketing 18.00 113.77 Poundage 6.11 Advertising 20.00 Refunded on 7/29/08 Law Library .50 Prothonotary 2.00 Milage 44.16 Misc. Surcharge 90.00 Levy 80.00 Post Pone Sale 30.00 Certified Mail Postage 2.46 Garnishee 18.00 23 / SJU9 f U P 311 So Answers, . .~ ~.ic~.c ~ R. Thomas Kline, Sheriff U~ ~ b By ~ ~ ` ..¢~.~-~r~L- ~~ . ~,. 5° cry, 4 ~» > S~J.~v'I~QSS~ ?8 2T~'IIdAc1Z.Ld :ssazppd ~ndaQ :gig ouoq;ozd `8uo7 •~ s• s aa; uol;3alloa :fauio;;e - 00'969`Zi$ sa~iega pue saa3 ain[ - Si'Z9S$ s;soO zaq;O 00'Z$ ~iq;ozd anQ ~2iIIlaS~ `2IIH~dQ "S I~idIJ.SI2IH~ auzeN ~,L2Idd JNI.LSdfIad2l (ieaS) LO-ZZ-OI :a;eQ peed ~uucEid 66'LZI$ P~Ed cud % uzuioO s.~lld 00'096`9$ - %S'6 N7 LO/Sil8 - LO/9Z/b ~0«~3 3saza;ul OS'$ 'Z'Z Ofl't100`OZT$ anQ aunoutd •pa;t~s anoge se pauiotua si pine aagstuze~ e se pappe uaaq seq aqs/au;~ zau/unq ~i3uou o; pa;aanp aze no~C `aagstuze~ paureu z u~ zaq;o auoius 30 uoissassod atg ~ puno3 st;uauzgae;le o;;aafgns ue uodn patnal;ou (s);uepua3ap atp3o ~Cazadozd3I (~) `3oazaq; 8atsodsip ascn~za~o zo (s) ;uspua~ap atp,;o ~zadoid~Cue ~u~zantiap uioq pue (s);uepua3ap au;3o;unoaoe aq; zo3 zo o; Igap due 8upied utoz3 pautoCua si (s)aaustuze8 aq; (q) `panssi uaaq s~;uauigae~e ue (e) :;~; (s)aagsnue8 aq; ~~uou o; pue •saagstuae~ p-es ay;;o low;uoa ao Apo;sna ~uolssassod aq; ui s;uspua;ap aq; 30 ,f;.~ado.zd .rat{;o IIB pue s;uepua;ap anogg aq;;o llu .to ,fue;o (s)aweu aq; ul s;unoaae aaq;o ,fue pue ;Isodap;o sa;eagaaaa `s;unoaae s~ulnes °s;anoaae ~uplaaga lld OSOLT dd `~.tngsalaegaay~ `anlaQ aslno7 OOOS `113 isT S2TdgblidIAi TiOLi ~d `IIIH duie~ `axld alsllae~ Z6Zb `}It~tdg ~l~id smolio3 se (S)d~HSII~I2IdJ ~o uoissassod aq; ui uodn painai;ou (s);uepua~ap atp~o ~Ljzadozd acp uae~s o~ pa;oazip osle aze nod (Z) • (spaaao~d;unoaae aaq;o pue salgl~ue;ul leaaua~ `aaue.tnsul 8alpnlaul) ~uI©$a.~o; aq;;o ~fue o; Sul;ela.t spaaao.td lle :BuloSaao; aq; 30 ~fue o; ~upelaa pupa ~fue;o sptoaaa IIe :~mo~a.to; aq; ;o Bue of ~l8la.t suol;n;I;sgns pue `s;uauiaaeldal `suol;Ippe ~sal.tossaaae Ile'aa;ei pa.tlnbae ao ,you pauuo sI ~uto~aao; aq;;o Bue .caq;aq~ `salgli~us;ul le.caua8 pue ;uawdmba `s;unoaae `waded Ia;;eqa `,f.to;uanut Iie tias o; pue(s);aepuaap aq;3o ~jZadozd aqi uodn ~Cnai of pa~oaz~p a.ze nod (i) OSOLi ~d `~.tngsaluegaay~ `•aQ.UIIaItIM T£6 `'IOQIIS d.L~vZ2If)`J'I~b1I z8 'Z Md'ISIN~,LS OSOLT ~d `~.tngsalnegaay~ `peoH alpulas '~ 8696 `~i~II dROH~ S2I~.L~SdT~1IQd~ uzoz3 (s) 33!iQ1eld `}II~t`v'g i~il~idd ~I.1I anp s~soo puz isazaluT `~qap a~ ~i3sues oZ =1L,LNIlOO QI~Pv"IH~gy1if1O 30 33RIdHS dH.L OZ Md'I - NOI.LOd 'IIAI~ (QNd'I2IdgY~if1~ 30 A.LNf1O~ IlnIO 8ZTS-LO ON (dIN`dA'IASNI~Idd d0 H.L'Id~MNOY~iY~iO~