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HomeMy WebLinkAbout04-0997 PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, ()Lf~ C;'C(1 ~ INDIAN SPRINGS ASSOCIATES, LLC" and W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants CIVIL DIVISION - LAW CONFESSED JUDGMENT CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of authority, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess Judgment in favor of Plaintiff and against Defendants as follows: Principal Amount Due """"""""""""""""""""""" $ 1,090,264,44 Letter of Credit """""""""""""""""""""""""", $ 35,797,75 Interest Amount Due (per diem I 89282from 03/02/04) """"""""""""", $ 3,038,51 Late Charges ,""'"""""""""""""""""""""""" $ 50,00 Unpaid Extension Fees "'""""""""""""""""""""", $ 750,00 Attorney Collection Fees """""""""""""""""""""" $ 112,990,70 TOTAL """"""""""""""""""""""""""""" $ L242.891.40 Judgment entered as above, Robert D, Kodak, Esquire Attorney for Defendants Supreme Court I.D, No, 18041 c~ ;(~ Prothonotary U r PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, L.L.C" and W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants CIVIL DIVISION - LAW CONFESSED JUDGMENT CONFESSED JUDGMENT COMPLAINT Plaintiff files this Complaint pursuant to Pa, R,C,P, No, 2951 (b) for Confession ofJudgment and avers the following: I, Plaintiff is Pennsylvania State Bank, a corporation duly organized and existing under the laws ofthe Commonwealth of Pennsylvania, with its principal office and place of business at 2148 Market Street, Camp Hill, Cumberland County, Pennsylvania 17001-0487, 2, Defendant, Indian Springs Associates, L.L.c" is a Pennsylvania Limited Liability Company organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 6046 Edward Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050, 3, Defendant, Walter 1. Diller, is an adult individual, maintaining an address at 6046 Edward Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050, 4, Defendant, Thelma L. Diller, is an adult individual, maintaining an address at 6046 Edward Drive, Mechanicsburg, Cumberland County, Pennsylvania 17050, F: IUSER IBONNIEJOIPSBICONF JUDGI0487 cfjdg, wpd :04Mar04 1 COUNT I PENNSYLVANIA ST ATE BANK vs. INDIAN SPRINGS ASSOCIATES, L.L.C. 5, Plaintiff incorporates hereunder Paragraphs I through 4 as if fully and at length set forth herein, 6, On or about December 28, 2000, Defendant, Indian Springs Associates, L.L.C, (hereinafter "Indian Springs") did enter into a Promissory Note with Plaintiff in the principal amount of One Million, One Hundred Thirty Thousand ($1,130,000,00) Dollars, A true and correct copy of said Promissory Note is attached hereto, marked as Exhibit "A" and made a part hereof. 7, A portion of said Promissory Note attached hereto as Exhibit "A" and made a part hereof is a Confession of Judgment. 8, In the ordinary course of business, Indian Springs did enter into numerous Changes in Terms Agreements for the Promissory Note attached hereto as Exhibit "A" and made a part hereof. A true and correct copy of the most recent Change in Terms Agreement, with a maturity date of December 15, 2003, is attached hereto, marked as Exhibit "B" and made a part hereof, 9, Plaintiff does not attach all of the numerous Changes in Terms Agreements as the only change is in the maturity date; however, upon written request to Plaintiffs Counsel by Indian Springs or Counsel for Indian Springs, said Changes in Terms Agreements will be made available in Plaintiffs Counsel's offices for the purpose of review and copy, F:IlJSERIBONNI EJOIPSBICONFJlJDGI0487cfjdg, wpd:04 Mar04 2 10, The Promissory Note and Changes in Terms Agreements herein referenced as Exhibits "A" and "B" and made a part hereof have not been assigned, 11, Judgment has not been entered on the attached Promissory Note in any jurisdiction, 12, Indian Springs is indebted to Plaintiff in the amount of One Million One Hundred Twenty-Nine Thousand, Nine Hundred Dollars and Seventy Cents ($1,129,900,07) for which no payment has been received when due and payable, all of which constitutes a default thereunder whereby Plaintiff exercises its option to declare the entire balance covered by the within instrument immediately due and payable, 13, In spite of Plaintiffs frequent demands, Indian Springs continues in default under the aforesaid obligations, 14, Pursuant to the terms and conditions of the Promissory Note, as well as the terms and conditions of the Change in Terms Agreement attached hereto respectively as Exhibits "A" and "B" and made a part hereof, Indian Springs is further liable for attorney's fees in the amount of One Hundred Twelve Thousand, Nine Hundred Ninety Dollars and Seventy Cents ($112,990,70), 15, By virtue of the foregoing, Indian Springs is indebted to the Plaintiff as follows: Principal Amount Due """"""""""""""""""""""" $ 1 ,090,264.44 Letter of Credit , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,,$ 35,797,75 Interest Amount Due (per diem 189,282 rrom 03/02/04) """"""""""""", $ 3,038,51 F: IUSERIBONNI EJOIPSBICONF JUDGI048 7cfjdg, wpd :04Mar04 3 LateCharges """"""""""""""""""""""""",,', $ 50,00 Unpaid Extension Fees """"""""""""""""",,""""', $ 750,00 Attorney Collection Fees """""""""""""""""""""" $ 112,990,70 TOTAL """""""""""""""""""""",,"""""', $ \,242,891.40 16, By reason ofthe indebtedness ofIndian Springs to Plaintiff, all of which appears by reference to the attached instrument, Plaintiff is entitled to Judgment in favor of Plaintiff and against Defendant, Indian Springs, in the sum of One Million, Two Hundred Forty-Two Thousand, Eight Hundred Ninety-One Dollars and Forty Cents ($1,242,891.40), WHEREFORE, Plaintiff demands Judgment in the sum of One Million, Two Hundred Forty-Two Thousand, Eight Hundred Ninety-One Dollars and Forty Cents ($1,242,891.40), plus interest thereon from March 2, 2004, as authorized by the warrant appearing in the attached instrument. COUNT II PENNSYL VANIA STATE BANK vs. W ALTER I. DILLER and THELMA L. DILLER. Each IndividualIv as Personal Guarantors 17, Plaintiff incorporates hereunder Paragraphs 1 through 16 as if fully and at length set forth herein, 18, In an effort to induce Plaintiff to extend credit to a business operating as Indian Springs Associates, L.L.C" on or about December 28, 2000, Defendants, Walter 1. Diller and Thelma L. Diller (hereinafter collectively F: IUSERIBONNIEJOIPSB\CONFJUDGI0487 cfjdg, wpd :04Mar04 4 "Defendants Diller") did execute a Commercial Guaranty, thereby guaranteeing payment in fu\l of any default amounts by Defendant, Indian Springs Associates, L.L.C, A true and correct copy of said Commercial Guaranty is attached hereto, marked as Exhibit "c" and made a part hereof, 19, Indian Springs has defaulted in payment of the monies due and owing to Plaintiff in the sum of One Mi\lion One Hundred Twenty-Nine Thousand, Nine Hundred Do\lars and Seventy Cents ($1,129,900,07), 20, Judgment has not been entered on the attached Commercial Guaranty in any jurisdiction, 21, Pursuant to the terms and conditions of the Commercial Guaranty attached hereto as Exhibit "c" and made a part hereof, Defendants Diller are further liable for attorney's fees in the amount of One Hundred Twelve Thousand, Nine Hundred Ninety Do\lars and Seventy Cents ($112,990,70), 22, By virtue of the foregoing, Defendants Diller are indebted to the Plaintiff as fo\lows: Principal Amount Due """"""""""""""""""""""" $ 1,090,264.44 Letter of Credit , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,,$ 35,797,75 Interest Amount Due (per diem 189.282 from 03/02/04) """"""""""""", $ 3,038,51 Late Charges """"""""""""""""""""""""""" $ 50,00 Unpaid Extension Fees """"""""""""""""""""""" $ 750,00 Attorney Co\lection Fees """""""""""""""""""""" $ 112,990,70 TOTAL """"""""""""""""""""""""""""" $ 1,242,891.40 F:\USER \BONN! EJO\PSB\CONF JUDG\0487cfjdg, wpd :04Mar04 5 23, By reason of Defendants Diller's guarantee to Plaintiff in the full amount of the indebtedness of Indian Springs to Plaintiff, all of which appears by reference to the attached instrument, and by reason of Indian Springs Associates, L.L.c. 's default, Plaintiff is entitled to Judgment against the Defendants Diller in the sum of One Million One Hundred Twenty-Nine Thousand, Nine Hundred Dollars and Seventy Cents ($1,129,900,07), WHEREFORE, Plaintiff demands Judgment against Defendant, Indian Springs Associates, L.L.C" and Defendants Walter 1. Diller and Thelma L. Diller, as set forth in Counts I and II hereinabove in the sum of One Million, Two Hundred Forty- Two Thousand, Eight Hundred Ninety-One Dollars and Forty Cents ($1,242,891.40), plus interest thereon from March 2, 2004, as authorized by the warrant appearing in the attached instrument. Respectfully submitted, KN~P'K K&IMBLU~,P.C. '/'; , v Robert D, Kodak Attorney for Plaintiff 407 North Front Street Post Office Box #11848 Harrisburg, P A 17108-1848 (717) 238-7151 Attorneyl.D, No, 18041 ---.--. F:\USER \BONNIEJO\PSB\CONF JUDG\0487 cfjdg, wpd :04Mar04 6 03/02/2004 11:04 PA STATE BANK oPPERATIoNS ~ 2387158 NO, 386 [;>015 PROMISSORY NOTE 1:r1iir.:;~~I, 51,1:10,.100.00 . ...-.... . .-. ....... .'..... ", l Iqan DIIIII.: Miiiilillll" 12-2~~..~, Ilb'-~.?o.:o~:..:" lun" NQ :-eiill 1l300!l.I.J7 . :... - '~~~,:~Of"" .Ift ", .' ":1lloI' I ..." -.:....-. :~.'" ~. Colle\9rll/" :~. A'uCiiil'!,1: _,~-. ..,,~;. ~..........,- ...- - -. ,..~- '''..~'.:~~'l!J:'~''I':'''.'', .. . '0"11;;'.,' Inlll~lu ~'YY.i. .....~ ,.._. I, Borrower: Indian Springs Aseoc:iGtft, LLC (TIN: 25-1&761127) 6GI6 Edwerd Drive Mechlilllicsburg, PA 17050 Lender: PENN$YL.V~IA STATE BANK Ca<lJsle 1 Nort'" Hllnover Street Car11.... PA 17013 Principal Amount: $1,130,000.00 Inter.at Rate: 9.500% DIIte of Note: December 28, 2000 PROMISE TO PA.Y. Indian Springs 'Aa8ocJ..... LLC ("Borrower") promlaes 10 ~y 10 pI!NHSY1..VANIA STATE BANK (.1-....d.r..). or order, in lawtul money of lhe Un"'d sta.. of Americe. the: pr1nctpal IIlfJIOUnt ~, One Million One Hund~ ThIrty Thouund & 001100 DoUars ($1,1:)0,000.00) or so much as rney De outslendlng, togelher WlIh In'...... .t the rate of S.500'" per ilI'Inum on th. unpaid oulsl4nding principal INIlanc:. of IlaCh adv..ce. Inl.__ shall be calculated from Ihe date 01 eech .:Ivanc:e unUI re~monl'or each adYanoe. PAYMENT. Bonower will P8Y thl. loan In one peym..,t 0'"a11 oulstanclJnlil principal pi". eI. ~ecI unpeld 1111:...... on ..At". 30, 2002. In addition. Borrower will p.ay Naular monthly payments or aec:rued unpaid inlere. beglnnlJl9 .Janu.-y 30, 2001, and -all subsequent Interest payments are clue on 'he.same dey ot ellCh month .tler that. The annuallnlerast rakl for this Note IS computed on a 365/360 basis; thet Is, by applying the ratio of lhe annuBJ interest rate over a year of 360 days. multiplied by the oul$tanding prlnclpQl balance, multlpl~ by Ihe actuaj number or days the principal balance ia outstanding. BotTawer Will pay L.endet' at Lender's addl'ClCS shown above or at such other place as Lender may designata in YfriUng. Unless otherwise agreed or requlr.:i by applicable law. payments will be -.pplied first to accrued unpaid Interest. then to principal, and any rvmalning amounl to any unpaid coUecUgn costs and lata c~atgQs. ' . PREPAYMENT. Borrower ag,.... that aJlloan lees and olher prepaid flnan~ charges are _rned tulfy liS of the data of th. loan and wiQ not be subject 10 refund upon early payment (whathclr voluntary or Q8 a rQSult of default). eXCept... ofherwise rgqulrad by law. Except for the foteQQing, Borrower may pay all or,. portion of the amoul'lt owed earl!.,. than U is due. Early paymenb will .,ot. unl_.. agread to by Lender In wrIt1n_9. .....I.va BOfY'OWer of Bc;nrower's obligation to conUnue 10 mo.ke payments at accruad unpaid lnteree.t. Rather, they will Nduca 1M principal balanca due-. LATE CHARGE. II a payment is 15 days or meAl late, Borrower wil be oharged 10.aoo"'- of ttte Ngu'.,..y scheduled paymenr or lSO.OO. whichever ia .-ter. OEl=AI.L T. Borrower wHI ba In default If any of the foDOWIng happens: (a) Borrower fails to make any p.yment when due. (b) BOl'Tower b,.eaks any promise Borrower kas made 10 L.andw, or Borrawar rails to comply wilh or to perform when due any other term. obllgaUoo, covenant, or condItion contained in Ihb Note or any Il5Ireement relaled to this' Note, Of'ln any othet' agreement or loan BOITOW8f"'haa with Lender. (0) BOI't'ower de'aulla under any loan. 8X."nsion of cradit. security agreement. purchase or salu agreement, or any ether agree~nt. In favor of any other creditor 9r parson thai may materially affect any of Borrower's; prpparty or Borrower's ability to lWp&y this Nohll or peffonn Borrower's obligatio". under Ihl. No'e or any of the Related Documents. (d) Any....pr..n..UOn or .la_mant made or furnished to l.el'lder by Borrower or on Borr~'s behalf Is falM or misleading in any material naspoct either now or at the time made or fumlsn.d. (e) BotTower dissolves (regardless 01 wh.thw DIeeIton 10 continue Is made), any momber withdraws from Borrower. any member dies, or any ot th. mambQl'S or Borrower becomes InsoIvenl, . ntealver is appointed for al'ly part or Bon-owe...s. property, Borrow.r,ma.k88 an asalgnmenl tor the b&neflt of creditors. or any proceeding is commeneed elt....r by Bort'oWW' or againsl Borrower und8t' , llny bankruptcy ar InsotveMCY laws. (I) Any CI'<<Ittof' tries to take any of Borrower's property on or In whioh Lender has . Jlen or secaJrity Ii'll...... This Includes a garnishment 01 any of Borrowe"'s accounts wtth Lender. (g) Any guarantor dies or any of the ~ evenla deKrtbed en this 'de'ault sec;tlon ocours wllh respect to any guaranlor of this Notcr. (h) A matet1a1 adverse chang. oocurs In BOITower's nnanclal cOndlflon. or Lander beJieves the prospect of payment DC" perfot'manoe of the lndeb"dnau is impaired. (I) Lender in good falth daema Itself Insecure. If any default,' oth...-,than lil default In paymgnt. is curabte and if BOrTower hilS not b8lin give," It noUCe at a breech 0' the same provision 0' this Nole within the procoding twelve (12) months,. It ,may be cured (and no QYQnt or dafault will have occul'l'8d) If Borrower, after receMng wrUt8n notice tram Lendef" demanding cure or such.de'ault: (8) cures the derauit within thirty (30) d.ys; or (b) if the cUte requires more than thirty (3D) days, Imrnedialaly InitiateS steps which L.ender deems In Lend....s so" discraUon 10 be sutftcient to cUre the default and thereafter conllnues and completes all naasonable and necassary steps sufflCienl to produce compUance as soon as l"$Uonably practical. LENDER'S AIGHTS~ Upon default. Lender may. after gMng such notices as R1qu'red by applicable law, declare the enllre unpaid principal balance on this Nete and all accrued unpalQ intentsl i""'rnedlaa.ly dua. and than Bon-owet' will pay that amount lander may hire or pay someone .1_ 10 help collect this Note if Borrower d~ not pay, BOITOwer aiso wlQ pay Lendlllr that amount. This lndudee. subject to lilny limits under applicable law, Lender's aUomeys' ... and Lande"'s legal expenses whether or not there Is a lawsuit. including atlomflyS' fees and legal 8Xp8l'l88S tor bankruptcy proceedings (lnoludlng el'l'arts to modIfy 01' vacate aoy. automa.tic stay or Injunction), appealS, and any anticipated f)o>>-judgment collection ser\l1oe8. If not pronlbilDd by applicablca law, Borrower aJso wm pay any court oosts. In addition to all other sums pRWlded by law. If Judgment Is enlered in oonnectlon wilt! this Note, inler'asf w", continue to accrue on 'his Nate after Judgment al the. tIldsting interest rate prcMded for In this Nota: 'This Note h.e been deltvered 10 Lender and .ccepled by Lender In the COmmonWlMlth of p.,..neyhran.. If there I. . l.wIault, Borrower llgrMa upon Lender'S request to .ubml' to ,,,. JUrladll:Uon of the eoLlrta 0' Cumberland CoUnty, the Commonwealtl\ 0' Pw;n,nllylvanl.. This Nole snail be governed by and construed In accordance wilh Ihe lews at the Commonwealth 0' Pennsylvania. DISHONORED ITEM FEE. Borrower will PIlY. fee to Lender or 520.00 if BorrowQl' mak811 a payment on Borrower's loan and Ihe chac:k or preaulhorlzed charge. with whlc:h B.on"Ower pays: is 1&..... dlehonOl'8d. RIGHT OF SETOFF. Borrower grants 10 L8nder a conlnlatual securlty Interest In, and hereby as$lgns, 'conveys, delivers, pledges, and transflirs to lender all BOf'I"OWer's righi, title -and Inleresl In and to, Borrowa.... accounts With Lender (Whelher' checi<lng. savings, or some ather account), IncludIng without limitation all accounts held Jointly with aomeone else and all accounts B0m::JW8r may open In trle fulure. ex:cIudlng however ..II IRA and Keogh a.ocounls; .and all 'trust accounts for which the. grant of a security In'erest woUld be prohibited by law. Borrower aulhor1us Lender, to the extent p~ittQd by applicable law. to charge or seton all sums owing on this Note against any and all such accounts. . . : COLLATERAL.. This Nota Is secured' by,' amon" other'thtngs, a Martg&ge and Security Agr_ment from Borrow_ tc Lender 0' even dale hefewtth and' intended fo be recorded l'arthwilh. secured upon premlsas situs. at 39.80 acre3 to.!ne Road, Shipp~burg. Pa. 172S1 a. deecr1bed in said Mortgage,. All 01 the agreements. conditions, covenants. provlsions_ and stip.ulaUons contained In tflg Mortgage which are to be la!pt and perlarmed by Borrow.... are hereby made a part of the, Nole to the same extent and w1lh the .ame foroe. and effect as If lhey wtlre fuly Nt forth l1erain, and BOrTower covenanls and agrees to keep and perlonn (hem. or cause thQm 10 be kept and performed. slrlcUy In ,accordance with their terms. . LINE OF CREDIT. This Note evtdel'lC8S a slr'alght line 'of credit. Once the tolal ~unl 0' prlncip.al has bean advanced, Borrowar Is not gntJl:led to rurlher loan advanees. BOrTower agrees to be liable for all sums either: (a) adw.nced in accordance with the InstructloM of 8n authorl2ed p8t'son or (b) .credlted to .ny 0' Borrower's accounts witt! Lender. The unpaid principal balance owing on ttus Nota at any time miiY be avid8need by endorsements on this Note or by L.end....s Infernal records. Indudlng daily computer prinl--outs. , ' LOAN DOCUM!!NT9. This Note,' the Mortgage and Security Agreement,. Ihe reated colla_r.eJ documenba. Lander's commitment letter to Borrower dated Celober 30. 2000, are rel'erred to herein callectlvafy as the "1..0&1'1 Documents.., end the provisions thereo' are lncarporabld herein by reference. DEFAULT INnAI!ST RA.TE~ In Ihe event of default for which Lender does not accele;"te the Loan. Including the rallur. or Borrower to provide the tln.~ atafements u, required her.under or under the laan Agreement. the applicable In.... ,... on the L.oen. for a Parlod beginning tht'llQ (3) da:Y!' aftar wrltkln nolice or such defaull and endh'9 upon the curing 01 said noticed default. shalllncfeaH one quartef' at one percent (.25"') for the r1r.st thirty (30) days 0' said default anq Increase an addiUonal one Qutiler (.25"'-) during each Ihlrty (3D) day period thereafter during .whlch the notice default oontlnues. Such default inlarnl ralas shan apply to the outstanding principal balance of Ih. Loan. Upon the curing:of the -noticed demutt, the Inleresl rate on the Loan ahall revert Ie Ihe initially 8greed-upen lntensst nit., eft'ectl"" on the date on whIch the default is cured. . ADVANCES. AdavanCM on Ihe Leen wtll be ~ on 100% of Invoice with a minimum advance amount or Sl5OO.00. Prooe.ds of sUGh adVances will be daposltacl to . cMddng -.ocount to be opened and maintained with PennaylYllni. state Bank in tna name of Indian Springs Aaaociatec, LLC. G~keAAL PROVISIONS. Lender may d".y or rorgo enforcIng any of Its rights or Nmad1_ und.r this Nor. without loeIn9 them. Borrower and any other PQl'lIIlon who siena, gu.antees or endOfWeB thie No., to the extent .allowad by law, waive presentment, demand for pllyTnent. protecst and notice of dishonor. Upon any change In the terma c1.lhl:s Nole, and unless olhanivl:Se expreset In wrftIng. no party who signs this Nole. whether as maker. guaran~r. aocommodaUon maker or endorser. shall be . agree that lender Inay renew or m:lend (rep_ledlyalid lor any length Of lime) this .I01in. or rmease any party or gu to ~Ize upon or p.rfecI Lendttr's security Intanast In the Collal...",I;. and, take a;ny other action d&emcld neoe...ry by nolice to anyon.. AJI .uch parti.. also a~ that L.nd~ may modify this lca" ~Ihc:nd lhe CO"o."t of or notice to an m the mocllftoatlon is made. If any portion ot thb Note Is for .ny reason datarmll-.d fa bel.lnenforceeble, It will not a provlalon. of this Nota. CONFESSION OF .JUDGMENT. BORROWER HEREBY I MPOWERS AN'( ATTORNEY OF! THE t=tROTHoNOTAF=IV OR CLERK OF ANY COURT IN THe COMMONWEALTH 0 TO APPEAR AT ANY TIME FOR BORROWER AFTER A OEFAULT UNDER THIS NOTE. Af\IID WITH OR WIYHO 'TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF REST, LATE CHARGES. AND ANY AND ALL AMOUNTS 03/02/;2004 11'1214 PA STATE BANK OPPERATIONS ~ 2387158 NO.386 [;112116 12-28-.2000 , Loan No 63000137 PROMISSORY NOTE (Continued) Puge 2 EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTERE:5r ON SUCH AMOUNTS. TOGETHER WITH COSTS OF surr. AND.AN ATTORNEYS COMMISSION OF TEN PeRCENT (10%) OF THE UNPAID PRINCIPAL BAlANCE AND ACCRUEO I~REST F'OA. CQl..L.l;CT10N, BUT IN ANY EVENT NOT LeSS THAN I=IVG: l-IuNOReD DOLlARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE. EXECLlTIONS MAY ISSUE;: IMMEDIATELY: AND FOR SO DOING, THIS NOTe O~ A COPY OF THIS NOTE VERIFIED ev AA="IDAVIT SI-IAl.1.. ae SUFFICIENT WARRANT. THE! AUTHORITV GI=lANTEO IN THIS NOTE' TO CONFESS JUCGMENT ^GAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF TH.-\T AUT"HOAITV. BUT SHALL CONTINUE F='A.OM TIME TO TIME AND AT A,LL TIMES UNTIL PA,YMENT IN FULL OF ALL AMOUNTS DUE UNDeR THIS NOTe. BORRO"NER HEREBY W^IVES ANY RIGHT BORROWER M^V HAVe TO NOT1C1i OF!. TO A. !-IliA.RING IN CONNECTION WITl-I ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE: LAW WITH REspeCT TO exECUl10N OF T1-IE .,JUDGMENT, AND STATES THAT EITHER A RE~SENTATIVE OF L.ENDER SPECIFICALLV CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORA.QWER'S ATTENTION OR BORAoweA HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTe, ~OWE!A R~ AND UNDI!ASTOOD ALL THE PROVISIONS OF THIS NOTE. aORROWER AGREES TO THE TEAMS OF THE NOTE ~D ACIC.MOWLE:OGES RECEIPT OF A COMPLETED COPY OF THE NOTE. o THIS NOTE HAS BEEN SIGNED AND SEALED ElY TtE UNDERSIGNED. :l~~~~",~~"'~~~'''I~) '-~ --- , _.sy:~.$:::,......------...- _.;"'^~.:~-.L......::..,.~.~-.-,;' "'""~Y".:'::.~::'::,I"l,}l) DoD".d.H:'El'Wln~ M.mber' ..:3 ~~ .-.p .fl /) . , 8Y'.;;r;':~". Z';(:~"~!:~'~~~;'~~-') The&m8.i;,;'llIet. Member' . . U!NDI!R: PENNSYL.vAHIA STATE BANK B,,, C.?iI/.~~)";1" . Authorized Offi~r "lXecS"~t.. L.lt\.Q'l or.crll. l.A&eR P,",O, R_liil. U.li.Pal." T.Il:". orr" v... a.a.. tc)cono_,,:ar_aooo AlIrlght.r.'''''''.cS,I''A-C20 1!!~2.INCI"'N.L.N I'\s,c"'-J 03/02/2004 11:04 PA STATE BANK OPPERATIONS 7 2387158 NO. 386 [;>013 \. JANGE IN TERMS AGREEM n r"l!ig;;',*J="~'~D""~~~;;L~~ '..~~~W~""""""E ""';f:~mo~~,bJ"\tQ.u:~'r.,-,, ".. ,~.~i'tii~~.,::"",;"-":"~j'=:.:~~::-~~:~~:~:~~:fi~it-~~~"~;~~~:~0h.f::~~~j~~:::--t:3:~~:-.~~_~:~.:.... Referenc:. In the shaded area are for Lander'. usa only and do not 'W71it the applicability of this document to any pe.rUoular loan or Item. Arty I..,." above contaJnI"g ....~. has baen omitted duo to text length limitations. Borrower: Indian Springs -'-oclates~ LLC (TlN: 25-1876827) LClnder: PENNSYl.VANIA STATE BANI( 8048 EdWard Drive C.rllale Financial Cent. Mectulniesburv, PA 17050 1 North Hanover Street CarlISI.. PA 17013 (717) 243-3'19 Principal Amount:- $1,130J~~.OO InitIal Rate: 6.250% Date of Agreement: I'! [<,! /0 :> Maturity 0.": OliCClt'r\ber 15. :2003 ex:tlallded 10 the BorroW$( .. eornrnorolal DESCRIPTION OF EXISTING INDIiSTEDNESS. On December 28. 2000, Pet"insytvani,a State Bank construction line of cr9dit in the amount 01 $1,130.000.00. DeSCRIPTION OF COLLATER.AL Pennsylvania Stato Bank will contlnuo 10 ITlQlntaln the foIowtng collatclral as SClCUrity tor this Joan: WI. "first mortoagg on real eetate located lit 39.80 acres Kline Road, Southempb::ln Township, Cumber1snd: County, Pennsylvania,.. DESCRIPTION OF CH4NGE IN TERMS. eneottve the date of 1hbl agreement. Penneylvania State Bank hu agreed to extend the maturity date to December 15, 2003. The BorI"OW8' agrees to repay this loan in accordance with the .Payment" SChedule described bekJw. PROMISE TO PAY. IncllllUl Springs Aaaociat-, LLC ("BolTOwer") pl"Om~_ ta PQ'to PENNSYLVANIA STATE BANK C-Llmdw"'), or ord.... In lawtul money 01 the United sra~.. of AmerIca. the prlnQlpal amount of On. MIllion One Hundred Thirty Thousand &. 001'100 Palters (S1,130,OOO.OO) or. so much _ may be outstanding, together wtth Interut on the unpaid outstanding principal balance 01 each advanc.. .I~t shall be calculated from u.. dote 01 -.ch actvanoa IIl\tll r8payment of ecach advJInce. PAYMENT. Borrower will J)IIv this loan on demand... ":.::yment In tullls due Immediately upon Lend..... demand. rr no demand I. made, Bonower' will PAY thl. loan In one payment of aU oubblndlng prlnciJaal plua all accrued unPIIId ln~ on D...".,... 16. 2OD3. In addition. Borrower wll1 pay regul-.rlllOrrthly payments of all accrued unpaid In~ due as of each peyment d8te, beginning November 1&,. 2D03.. with all . subaequ..,t In...." lMyments to b. due on Ut. _me day 01' .-eh ~nth after thet. Unl... ou....wl.. avr-d 01' r~ulNd by applicable law. plIYfIMIIlb will be applied fim to any accrued unpaid Interest; then to principal; then tD any unpaid QOllevtion c0st8:; and UterI to any 1818 . ch...ge8. Intweet on this Aare-nent .. computed on a 36&3450 simple interest beaia; that ., by applying the ratio of the .nnuel Intereat ra1;. over a year 01 3eo daiy., multiplied by t,he ~ndlng principal bilJan~ multiplied by the actual nurn.... of d8Y_ the principal blIJance Is OUrsblndlnSl. BOlTower will pay a...ncler at Lender's -.dc1res8 ahown above or at such otn... p1ilOe" Lend. may ~Ignata In wrJtlng. VARIABLE IN'TI!R-=-ST RATe:. The in'teraISt ra19 on lhla Agrelilmam Is subjacllD change from 1Ime to thle based on change~ in an Index which ilI1he ~annaylvanl,l;l State Bank's Base l...er1cUng Rate (the -Index-). The Index Is not necessarily the IowNt rate chargad by l.8ncIor on Ita loan. and Is seE by let\de( In Its sole discretion. If the Index becomes unavailable during the term of tl'Ils loan, Lender IT1IIY designate a aubstltute.1nde.x: after notifying Bonower" Landttr will bilIl Bcrr0w8r the curronI,lnd_ ral8 upon eo.rrow.r'. ~uMt. The_ in..... rata change will flOf: occur mora ctten than eech Day. Borrower und.ratands that Lender may make IOIln8 baaed on other r.tu aa well. The Index CUl'NftltIy fa 5.000% pw..nnum. .The In..... ra.'to be .ppllad to "he unpaid prlnclpiallMlance of the Nota will be .t. ...w gf 1.2IiO percentap polnta o~ the Indltx. ,...Ultlnig In an I"Wal .... of 6.250"''''' per annum. NOTICE: Under no cJrcl.Jr'lWfancee wt111he interest rate on the Note be Il1Of'8 than thlill'Tll!lXimum ra~ .11owed' by. appltoable law, PREPAYMENT; MINIMUM INTEREST CHARGE. In any event. tNen upon full prepayment of thle ~. Sorrower underatand8,.tha.t .utnder is enLided to a minimum Int~ charge 01' $7..so. Olher than BorT'0'N8r's obDgatlon to pay any minimum lntarest charge, BorrtlYier may pay w;thout penmty all or a portion oA the amount owed earlier lhan It i3 due. Ear1y payments wiD not, unless agreed to by lettder In writing, relieve Borrower 01 BDfrOWer'S obIlgallon 110 conllnu. 10 mQk. payrNnt8 of accl'UGd unpaid lntIarML RathClr, early payments will naduce the principal balance due. Borrower agrees.not to send Lender payments marked "paid in fuil-, "without recourse", or sinilar language. If EJorrower aend8 such a payment. Ler'lder .mayac;eopt It wlttlout Ioalng any of Lender's rights under thl8 Agreement,. and BorTowOiIr wilt remain obIfgatad to pay any further amount owed to Lender. All written convnunlcaticnll conceming disputed amounts, including any check or other payment instrument that ""dicatee that the payment. constitutes 'peymant in full. 0' IIlliI amolrlt owed or that is t<<ldered with olher condi'tIons or limitations or u full satisfaction 01' a dlsputQd amount must bemalledordallverodto:p.8r.:lnsyMilnl-.STateBan...2148Market~p.O.Box~CampHIII.PA17OO100487. LATE CHARGE. If a. payment Ia 15 days or more late. Bcrrcwer wiD be oharged 10.000% of the ravularty schtlcIUled ~t or S50.00, whichever I. greater. I~REST AFTER DEFAULT. Upon default, Including 1aiIure to pay upon flnaf maturitY, the toIaI sum due under thIs A.gr~ will bear Interest from . the date or acceleration or ma.turlty at the variable intarlil8t rate on this Agreement. The interest mte will ,net exceed the rn8ximum rata permittad by applicable law. . . DEFAULT. Each of1he following shall COt'18titute an Eventct Doflilutt uncl8r'lhis Agr&Gfllliat'lt: Payment.DefaulL Borrower falls to milke 4nY.paymenl when due lSlder the Indeblectno8s. Other Default.. Borrower 'faits to comply with or 10 perform any otI1er term. obligation, covenant or condtOOn contained In this Agr8&l'nCilnt or In any of tho RlilllafQd Documents or to comply. with or to parform any tarin. cbIlgation. covenant or concflticn ccntained in any other agreement batwa." Uw,dar and Borrower. . Fal.. Statements. Any warranty. repreeillntation or statement I't"IIlCf8 or furnished to Lender by BoI1'OWe1' or on Borrower's behalf undet this Agnalill.mont or thQ RalafQd Documen.. I. t'ala. or ml&leeding In any material respect. either now CI at the time mad. ~ fumished or becomes '-I.e or m~la.dlng at any tIrn. ~r. D..-th or lneolvency. The dlesolutlon of SoITower (reQa,rd:less of wt1eIhei" election to conttnue is inade), any member wlthc:lraws from Borrower~ or any other terminatiOn of Bonower"s existanca as a going buslne.s or tt\Q death of :..ny rnamber, thoa Insolv....cy of BcrrO'Nllf", the appointment of a rlilC8iver tor any part: or Borrow.r'. prcporty. any a..JgI'VtWll"lt for the bcmettt of .cNclltof'8, JInY type of creditor wor1<out, or the commencement 01 any proceeding under any b&nkruptcy or nwlwncy laws by or agUlst Borrower. Creclltor or Forfeiture Proceedlnp. Conv1'1811C8m81'Tt of .forIiilclosullill or fort'afture pnx:eadlngs, WhIIiIIthliilr by judicial proceeding. .elf..holp. rep08SiK.1on or any other trl$thcd. by af'y oreditor d Borrower or by any govwnmenr..l agency ~Nlt any .coIlatareJ aec:urlng the Indebted.'1e88, This includee a garnishment 01 any 01 60n'0wer"s accounts. including deposit account., with Lender. However, this Event or Default shall not apply It t:I'l8re Is a good faith diaptne by Borrower as to [he valldtty or reasonableness of the claim Which Ia the baaI. of the cred~r or 10rf8fture Proceeding and if Borrower gives Lender wrftten nofice of the cradifor or forleitunt proceeding and depcslts with Lend"r man_ or a surety bond 'or thliII creditor or forf8lture proceeding, In an amounr determined by L.ender..1n Its saki dlscredon. as bM\g an adeqUate reserve or bond,for tho& dlepUte. .. Evorits Attectlng Guarantor. Any of the pr~lng events OCCUI'!t with respect: to any QUIU'IIntcr. endorser. lIurety, or acccrnnodation party or any 01 the Indebledness or eny guarantor. endor8er. surety, or accomi'nodation party diM or baoor'R.&.lnca"llpfM8nt 0;'. revok!i!S or dieputes ~e validity ef. orllablllfy under. any Guaranty of the Indebtedness evidenced by this Note. In the event 0' a. death. Lender, a" its opllon, may, but shall not be required to. pennit Ule gu<<ran1or's estate ~ assume LrlCOnditionaltythllill obligations .....ing undar the guaranty In a manner SaUsfactory to Lender, and. in doing so, cura. any Evem of Oafal.llt. Adverse Ch.nge. A matarlal adVeree'cI1ange occurs in 60rr0wer'~ financial condition, Of" Lender be(jeoyes the prospect or payment or pllilll'fOr'lT'W\ce of the lnc:lebtednes.s ill Impaired. In.securlty. l..ender in good faith bct.Ilovea 1t8." Nacunt. Cura Provfslons. Ir any de1ault, other d'Ian a d....u1t In payment fa curabl. and if Borrower hu net been given II. notice or a brea9h of 'the same provision of ttlla Agre.rnent wfftltn the preceding tINeIve (12) months. It may be cured (and no .vant 01 defaUlt wD! haw ceeurrod) It Borrow_. after recalv....g written noUoe from Lender demandk1g CUret 01' such d.-#ault: C') c....... the defauft within t'It'taan (15) clava; Of' (2) H the OUt'8 raqulrea more than flneen (15) days, lR'll'1'Mtdi8ta1y In"'" stape "IN' dlacradon to b. sufflolent [0 cu... d\a dlria,uJt and ~ereafteio continuaa and ccmpIOtlM.a11 r...onabI. aJ"d. n e as soon u reasOrlably pre.otlCaI. .LENDER'S RIGHTS. Uporo ckofautt, l&nGIer may. 8ftef' giving. a..w, deoI.... the -nu. urTpaicI PrincIpal bal_ on thla A9....~ &rid .11 accrued UnP:tlid inte~t hvnedlalely due, t. ATTORNEYS' FEES: EXPENSES. Lender may hire or P6Y s I'88fTIent if BcJTOWer does not pay. Borrower wiU pay Lendar that amount.. This inclUdes, Sl.qect to any limits t.r\dQr 'fees and Lender's legal exp8f1S8S, wh8'ther or not there Is a lawsuit, including attomeys' 1oes, ~as for efforts to modify 01 vacate any automatic stay or lnj,Ul"\Ction), and eppeaIs. If not prohiblted. by appllcabl. Ia.w, Borr in addition to all other sums provided by ~w, 1213/1212/2I21l214 11:04 PA STATE BANK oPPERATIoNS ~ 2387158 NO. 386 [;1014 Loara No: 63000137 CHANGE IN TERMS AGREEMENT (Continued) Page 2 GOVERNING LAW. Thia Ag....ment will be gOyerned by, eonS1,rued end enforced In aCcordance with fed....1 law ilUld the lawa af the COmmonwealth of PennsYlvania. This Agr.m....' nu been accepted by u=nder In Ule Common....ilh of Ponn.,-twmi.. OtSHONORED ITEM FEE. Bon'aW'" w411 pay . Ie. to Lender ot $25.00 if Borrower makes . ~ant on BofTower'e IcI&n ."d tho eh4lOk 0' prlNll.tlhor'lzQd charge with which Borrower pays is later dlshonorlild. RIGHT OF SI!TOFF. To the extent perminad by applicable law, l.8nd&l" reservelS a right of satcl't in all Bon'oweI's accounts with Lender (whether checldng, s.avlngs, or SonlQ other account).' Thill lnCludlp aD aocounts Borrower holds jointty with .~ else and all aooountS Borl'ower may open In 1t\a future. However, thls dOlM not include any IRA or K80Qh accotrlts, or any trUSt accounts for whioh setoff wouJd be prohibited by IrttW. BOfTOWlIr authorizoa Lender. to the extent permitted by appIicabHiIo iaw, to charge or setoff all sums owIno on tho ~ agO'ls1: any and aJJ sucl1 acoot6lts. COLLATERAL. Eionvw.r IICknowtedges this ~t 18 sGCUred by the foIowtng collateral descrtbed In the HCUrity: instrument IIstBd herein. all the terms and condition=, ot which are heraby ineorponlted snd mado a psrt of th~ ~1lN'It: a Mortgage 01' Oeed of Truet to a truatee in favor of LlIII'1dor 01'" real prop8nY Iacatlld in curnberi<<nd County. CommonweclIth of PQI'\neylvanla. UNE OF CREDIT. This Ag....,,-.,t evidences a straIgtrt line of c:redt Once the total amo...-rt 01 principal has been -.dvanc<<i, Borrower Is ,not entllkld to funner ioan advances. AdvanOe8 under this AQroement may bo hlqueated only In writing by ~ Dr fJS provkted In 1h1. paragraph. All communk:a'dons, 1nstn.JCtk:lns, or dlrectiona by .teIephone Of" otnerwl:58 to UM\der are to be dlrocted to Land.r'. office shown.emov.. Tt\e following peraor'I:s CU(l"8ntIy are aud'lorized to requeet a.c:Mancaa and authortze payments under the line or cr8d1t untH Lender recaives 1rcm Borrower, at Lender's address llhown abovo. written notJoe of revocation ot thlllir authority:: Waller LOlli..... Membet or I~ sprlngll A8aOC1.... LLC; nelma L Diller, Member of Indian Sprtngs Auoci.... LLC; and Donakf H~ &win. Member of Indlen Sprtnp AMociatIM. LLC. Borrow... agr'8IlIa to be liabte for all sums either: fA) advanced in accordance with thrt instructions or an au1.hOc1Zed person or (B) credited to any of Borrows,.. accounts with Lend.... Thill Unpaid principal balanoe owing 0l'1 this Agreement. st any tJmQ may be &videnoed by endo,..am..,ta on thlll Agl"8el'nent or by lAndar"s Internal rocordll, including dally COl'TIp~ prtnl-OUIS_ under will have no obIlgatlan fO advance 1...-.dS uncle( 1hl8 AgrCllill'l"l8nt if: (A) Borrower 01' Wf'I guarantor .. in default under the tarma of thl. Agr8Qrl'lont or any agreement that Bcrrrower or any gUlSrantor has with L.Dnder. including any agreement made in oonnecdon wilh, the signklg of U'lb Agreement.: (B) Borrowor or any guarantor c::..... doing business or Is 1nliIoiVVt\t; {O) any guarantor seeks, c1a1r'ntll or otherwise attempts to limit, modtfy or revoke such gUllrantor'a gu;uantClCl or this Agreement or any other loan with Lender: (D) Borrower hae applied funcI. provided pursuant to thle Agreement for purpoalillS other than those IlUlhonzod by Lender; or (E) Lender in good 1aJth bellevelll Itself In&ecura. CONTINUING VALIDITY. Except u u:preeely changec:I by this Agreement. the hNT'ntlll; or the original obligation Of obligations, incfudlng a1ll1lgrewnents. evidenced or securing lhliJ obIlgation(s), remain unc::hanged and in fUll force and effect. ConHnt by Lender to thla Agreemenl dO.- not waIVe Lender's right to .strict perfo~ of N obIigation(a) as changed, nor obDgatcl Lender to make any fuluro change In terms. No1ttInQ In this Agreement will ~ a satisfaction of the obIlgatlon(al. It is the Intention af Lender 'tQ reotaln as liable parties all msk.,-sr; and 8nCIa~'" of the original obUgation(a). Including acoommcdation parties. unless 11 p&rty Is exprossly relClUled by Lendet In writing. Any maker ot endorser, including aCcommodation IT'liIkers, will not be released by virtu. or this Agreement If any person who signed th& original obltglltlon do_ not sil;J1 thla Agreemerrt below, then all persons signing below acknowledge that mill Agl'VCln1Qnt is given conditiOnally. bQeod on the represl!f1t:atb1 to Lender thaI th. nan-signing party consents to the cI'\ang8s and provisions of this .Agreement or od'\8IWlso wiU not be relea!led by It. TOia waiver a~ies not ordy 110 any Initial e.xt&n8lon, modincation or ralGaSo. but also to".all S~h s.ubsequent actiOnS. SUCCESSOAINTERESTS. Tho tanns of this Agreement shall bA binding upon Borrower. and upon Borrower'. hIirirs, per3OI1a1 representatives, sUCC~OI'!l, and assigns. and shall be ~abIQ ~y Uanc:lor l.!lt1d ib euccessora and asaIgns. . " NOTlP'Y US OF INACCURATE INFQRMATlON: WE REPOFIT TO CONSUMER REPORTING AGI!NCIIIS. P1lil8Se notify WlI If we report any Ina~unatQ Information about your account(_) to a consumer reporting agency. Your writt&n notice describtng lhe spec::lflc InaCCIXllCy(iu) should be sent to us at the 1clloWlng addr~O: PENNSYLVANIA STATE BANK 2148 Mari<et street. P.O. Box 487 Camp Hill, PA '7001~7 MISCELLANEOUS PROVISIONS. This Agreement is payuble on demand. ~ Inclusion of speclflO. de1&ft prov1.s:lons or rights of Lander shall not preclUde LendClf"s right to declare peyment 011hi8 Agrallilf'T1Ql1t: on ItII dernlInd. Lender may delay or.forgo anforcing any at Its rights or r~lae l.lI"Ider . this Agreement wllt'lout II>>lng them. ~ and any olher person wtlo signs. g~ or endonsee thl. Agreeil'T18nt, to the extent allowed by Ie.w, waive presentment. demand for payment, a.nd notrea or dishonor. Upon any change In tho tQnTIs of thIs Agreement. and unless otNlIWls. axpressly . stated In writing, no party who signs this Agreement, wtIetnel' iU maIe_, guarantor, accornoodatlon ~r or ondorSll1', 8hal1 be released from liability. All such partlss agree 1tlat Lender may renew or OXI8nd (rspeat8cly and for any 1~ of time) this loan at release any party or guarantor or coIatal'1ll; or impair', fall ,to reaJLze upon or per1ect Lender's .3eOurlty interest In 1h& ooI18tanal; and take any ather action deemilCl neoeaaary by Lend.r without the consent of or notice 10 anyone. All such partlCllil, al80 agniMit that UWlder may modify thts loan wtthout 1hCl consent of or notice 10 anyone ott1er then tho party with whom tho modification Is made. The obligations under IhJs AQrooment ara joint and several. 'PRtOR TO SIGNING 'THIS AGRBEMENT. BORROWER READ AND'UNDERSTOOD ALL THE PROVISIONS OF.THIS AGREEMENT. INCLUDING THE VARIAeLE I!"fTEResT RATE PR,OVl$iONS. BORROWER AGREES TO THE TEIUIS OF THE AGAI!I!MENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT.THIS AGREEMENT 18 AND SHAll.. CONSTFTUTI! AND HAVE THE I!~FECT. OF A SI!A~D INSTRUMENT ACCORDING TO I.:AW. . . .. BORROWER: IN~INGS A OCIATES. J.. ~- ~ i~I': ,;",. ~~'~':.ciii;~' 01 ni?i;;~;?~SeaQ ~;:LLC .". i~' '"~~,. By.. .~''i';'..""'-C~~~~''''''~~'?:lSelil) c.-.--; ruald H... ""-...Itr;" r or }nd..n S1pnnp Aa.oclataa, LLC ~DER: .",,' '~, ~, . ",~~,._" ~.,-."~""",=,,,..,.. " ~ ""'" _ ;,:;~j ,,';""'" ~=,...,"" ..~..,_.e."!>. ey~, '~., !-~,her.." .-.' .~;;~';~.~o,. ~ ~~ "~~~~Q ~tu. u..c PE~NSYLVANIA STATI! BANK x '/]0^,,'~ A~edSi:gn.,. . "--..-.------------.- "".....- ....-... .a.l.l.-~-_.... _ ~ 03/02/2004 11:04 PA STATE BANK OPPERATIONS ~ 2387158 NO, 386 [;1012 DISCLO&-.JAE FOR CONFESSION OF ...~DGMENT "",,_'mm..~,,"""""'" .... ,".. ."'..,'m~fii~~:I~~,"....,,',5;j::'.-t I ..~, -, '~....~-,' ~:-~~?JLL~~esinl~.sh.2~::~i~2~~:.(s..:~~~~~~~~~~~~1 Borrower: InCllan SprIng. _Iales, LJ.C (TlN: 2S-1876827) 6046 Edward Drive Mechanlcsburg, PA 1705D Lender: PENNSYLVANIA STATE BANK Carll... 1 North Hsnover Streel Carlisle, PA i1V13 Guarantor: WllIler I. Diller and Thelma L.. DiDer S_ Edward DriVe Mechanlcsburg, PA 17USD DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS 2-8 DAY OF Pec.t:._,"'- $1,13O,ooo.oD ClIlL.IGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOll.D PERMIT L.ENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAUL.T ON THE GU':'RAAIY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO Dl!FEND AGAINST THE ENTRY OF JUDGMENT, IN EXECUTING THE GUARANTY, BI!JNG FULY AWARE OF MY RIGHTS TO ADVANCE' NOTICE AND TO A HEARING TO CONTEST THE VAL.IDITY OF ANY JUDGMENT OR OTHER CI.AIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTELUGENTL.Y, AND VOL.UNTARIL.Y WAIVING THESE fliGHTS, INa.UDING ANY RIGHT TO ADVANce NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESS!. Y AGREE AND CONSENT TOL.ENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. INITIAL.S: jf~" v:;:;{J B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING; THE CONFESSION OF JUDGMeNT PROVISION IN THE GUARANTY AL.SO CONTAINS LANGUAGE THAT WOlA.D PERMIT L.ENDER, AFTER ENTRY OF JUDGMENT, TO EXE~ ON THE JUDGMENT BY FOREa.OSING UPON, ATTACHING, L.EVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZiNG MY PROPERTY, IN FU.l OR PARTIAL. PAYMENT OF THE JUDGMENT, HOWEVER, LENDER MUST PROVIDE NOTICE TO ME UNDER APPUCABLE LAW IN EXECUTING AMY CONFESSED JUDGMENT. IN EXECUTING THE GUARANTY, BEING F1.llY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BeFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGL.Y, IIITEL.LJGENTL.Y "_NO VOLUNTARILY WAIVING THESe ~iG;;iSr ANi) I EXFRESSlV AGi\EE AND CONSENT TO LaiOeii'S EXECiJ'TING ON THE JUDGMENT, IN ANY MANJItIER PE:~MtTTEO av APPL.ICABL.E STATE AND FEDERAL. LAW. INITIALS:~~;t:' n C" AFTER HAVING READ AND DETERMINED WHICH OF THE FOll.OWING STATEMENTS ARE APPLICABLE, AND BY PLACING MY lNITIALS NEXT TO EACH STATEMENT WHICH APPL.IES, I REPRESENT THAT: , 20~, A GUARANTY OF A PROMISSORY NOTE FOR INITIALS TJ.{) WT:.!? 1. I WAS REPRESENTED BY MY OWN INDEPENDENT L.EGAL. COUNSEL. IN CONNECTION WITH THE GUARANTY, 2. A REPRESENTATIVE OF L.ENDER SPECIFlCAL.L.Y CAL.LED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY TO MY ATTENTION. ' 0, I CERTfFY THAT MY ANNUAL. INCOME EXCEEDS $10,000; THAT THE BL.ANKS IN THIS DISCL.OSURE WEREFILJ.ED IN WHEN I INITIAL.ED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISa.OSURE HAS BEEN SIGNED AND SEAL.EO BY THE UNDERSIGNED. ~,tt;{,"~_,,_:~_ \...)"il/ler I. Diller '''.''''~C,<"....",..,."..+.'...m,,::I2.....\~...d},1 " " , mm X :;...-.~ ..~":'~'::-::'(:":"'A""""'''~~~. ,'.~"'k ~._...........,,\-'-"-"~----'" (SEAL) Thelma L.. DIller .OVl1 LAse", PRO, Rc:~ U.s. Pd. & r.M-Off.. Vec. 3,ZlJa(C)CQl'\l:~nnx2oo0 AUr:!ghtlr.a 03/02/2004 11:04 PA STATE BANK OPPERATIONS ~ 2387158 NO. 386 Gl008 COMMERCIAL GUARANTY r"'" , ,','" " ."""",Ejmr.ri~~R!lf""I~~;;;:;~OIi5;!Z~,jii:l:f-.".,f.'-..~~ ~ ':~.~~::i~:~~;ij!i~ ~ :~::r:~~L~~_.:~~:.:::~;~i~~:~t:~~:.:.~f~=~iir:~~?~ti~~4~~ ~..M._~~:.::: Ref....nces in Ihe shaded ."'" llJ'. for L.nder's USQ only and do not Iimitlh. applicability of tills document to any particular loan or item, Borrower: Indl8n Springs AssocIates, LlC (TIN: 25-1.7&827) L.ender: PENNSYLVANIA STATE BANK 6046 Edward Drive Carlisle Mec/uulICSllurg, PA 17050 1 North Hanover Streei Carl.f$ie.?A i;vi3 Guarantor: Waller I. Diller and Thelma L. Diller 6046 Edward Drive Mechanlcsburg, PA 17050 AMOUNT OF GUARANTY. This'" a guaranty 01 payment 01 1oo.000lC. 01 Ihe NOle, including Wllllout nmilalion the principal Nole lIlI10unl 01 One MIllion One Hundred Thirty Thousand & 001100 Doll..... ($1,130,000.00). GUARANTY. For goocl and valUable consideratIOn. Waller I, Diller lII1d Thelma L Oilier l"GUaralltor") _Iutely and unconditionally guaranlee and promise 10 pay, Jointly and severally. 10 PENNSYLVANIA STATE BANK ("Lender") or its emler, in leg81 bOnder 01 !he United Slates 01 America, 100_000"" 01 the Indebtedness (as Ihal term is defined below) 01 Indian Springs Asooclales. ltC ("Borrowe") ,10 Land.. on the lerms and conditions sel forth in this Guaranty. Gua-antor agrees that ~r, In tis sole discretion, may deUlnnlne wi'1Jcn porii~~ of Borrower'" indebtedness to Lender is covered by Guarantor'a percentage guaranty. DEFINITIONS, The following words Shall have the fOllowing meanings when used in Ihis Guaranty; Borrower. The word "Borrower- means Indian Springs AssociatGs, LLC. Gul.ranlor, The word "Guanlntor" means Waller I. Dillar and Tholma L, DiII.r, who llnl signing iNs Guaranty )oinUy and severaliy. , Guaranty, Th. word 'Gua",nly", means this Guaranly made by Gu....ntor lor tile benefit of Lender dated December 28, 2000, Indebtedness. The word "Indebtedness" means lhe Nolo, including (a) all principal, (b) all intarost, ' (c) a1llato charges. (d) all loan lees and loan charges, and (e) all collectiOn costs and expenses relating to the Note or to any collateral for lIle NoIe, Collection coals lII1d expenses Include wllhoUllimilation all of Lender's attorneys' fees and Lender's legal expen.... whether or net sull is insliluliod, and attorn.ys' lees and legal expenses for bankruptcy proceedings Qncluding efforts 10 modity or Vllcste any aulomallo slay or injunction), appeals, and any antic:lpated post-judgm.nt collection seMces, Lender. The word "Lend.r" means PENNSYLVANIA STATE BANI(, lis suocessors and asslgns. Nole, The word "Note" means ,the promissory nole or credit agreement dated December 28, 2000, In the original principal amounl 01 $1,130,000.00 from Borrower to Lendsr, together with all niI"ewals of, extensions of. modifications of, retinanoings of, consoUdations of, and .aub;~itt..1io;;a for ~he POCi'i".lSSOoI ;;Q~e 00- agreement.. Related Documents. Tl1e words "Related Documents" mean and include without fimitation all promissory notes, credit agrDClments, loan agresJ7]Q.nlst Bnvironmantal .agrBarnents, guarantlcas, SQOurity agraamCilnts, mortgagas. deQds of trust, and. all oth<< instruments. agreements and documents, whether now or hSI'9G.tter exisUng, axecukad in connection wfth the: Indebtedness. IIo\Al(IMUM UABILITY, The maximum lIabUlly of Guarantor under thIs GuarantY _I nel exceed ai any 0<11 Ume loo.ooo~ at Ihe 8I1lOunl of the InatllledneSS deSCrlOea aIlOve, pIUS all COsls and expenses of (a) entorcement of thia GuaranlY and (0) collection and sale of tIIIy collalenll securlnlllnls Guaranty, , Tha abovo nmilaflon an liability Is not a reslrie~on an the amounl of the Indebtedness 016arrower to Lender either in the aggregate or at any ene tim., II Lender presenlly holds one or more guaranties, or hereaflor rocaiII8s addItional guacanti.. from Guarantor, !h. righls of Lend.r under all guaranties shall be cumulative, This Guaranly shall net (unl.... spaciflcally provided below to the contrary) a/feCI or Invalidate any such olher guanlnlies, The , liabiUty of Guarantor wlil ba the AQ9regale liability of Guarantor under the temls 01 this Guaranty and any such other unlerminated guaranties, NATUR!! OF GUARANTY. aUarantor inlends to guaranlea at all times the partormar)ce and prompt paym.nt when dU." wh.lher at maturity or earlier by roason of """"iorallon or oth8twi.., of all Indebtedness wilhin the nmits sel for:h In lIle preceding sec1ion of lIlis Guaranty, The obUgations of GUllJ'antors shall be Joinl and several, Lender may proceed against any of tna Guarantors Individually, against any group of Guaranlors, or against all tha Guarantors In one action, wllhout arrecting lh8 right or Lon..... to proCQed agains! olhor Guarantors lot amounts that are covered by tills Guaranty, Any inability of Londar to prOClllld against any Guarantor (whelt>er caused by actions of a Guarantor or of Lender) will not alfect Lender's right 10 procead againslany or all rt'.rnainl<lg Guaranlors for all or pari or the amounts covored by lhis Guaranty, DURATION Of GuARANTY. Thls'Guaranty wiU take afhlcl wh.n ruc:oivad by Lander wilhoullhe necessIIy cl any acceptance by Lender, or any notice to Guarantor or to Borrower, and wIU continue In fuJl ~ until all Indebtedn.... shall have been fully and finally paid and satisfied and all ather , obligations of GUlllllnlcr und.r this Guaranty shllll have been perform.d in fulL R.I..... of any 01lHlr gUar.l,nlor or termination of any other gUllJ'anty Of !ho Indebtedn... shall notaflecl the lIabUity of Guarantor underlhis Guaranty, A ravacaUon received by L.nder from anyone or more Guaranto", shall not affect the nabUlty of any remaining Guarantors undor lhJs Guaranty, GUARANTOR'S AUTHORIZATION TO LENDI!R. Guarantor aUthoriZes Lend.... WllItout notice or demand and witnoul IeaSenlng Guarantor's liability under Inla Guaranty, frOm anN! 10 lime: (0) 10 _ one or I1IORl additional sacurad or unsecured 1_ to Borrower. 10 _ equipment or other good. to Borrowe<, or olllerWlse 10 ex1end _onol credille Borrower; (b) to oller, compromise, renew, extend, accalerale. or otherwise change one or more limes the lime lot payment or 01lW terms Of the Indebtedri8sa Ot any part of lhe Indebladness, including increa.ses 8llCI decreases of the rate Of interest on Ihe Jndetrtedness; extensions mlY De repealed anCl may be fOr longer thm1 the , original loan lerm; (C) 10 _ and hOld security fur the payment Of litis Guaranty 0( the Indebtedness" and exchanga, anlotce, Waive, SUbardlnata, fail or decide nol to perIocl, and _ my such ......rlty. wilh or wilhoUlthe subslilutlon of new collateral; (d) 10 release, . substitute, agree not to SUI, or deal with any one or more of Borrower's sureUu, endQrsers, or other guarantors on any terms or In any manner Lender may chOOse; (0) 10 determine 1Iow, when and whal'appllcallon of payments and credll8 $10811 be mede on tho Indebtedness; (I) 10 opply SUCh oecurtlY and dlrec\ tho eml... CJl manner 01 sale _I, Including WllhoUlllm\101ion, lIlT'( nonjUdieiol sale permitlad by the lerlll$ Of the controlling securtty agreement or deed 01 trust, asl.8ndar tn its dlacrellon may determine; (g) to sell,trarisler. assign, or grant particlpatlons in 81' or any pari 01 the Indebledness; and ' (h) to assign or tranSfer thiS Guwanty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES, Guarantor represenis .nd wantln1s to> Lender tnat (a) no repres.nlalions' or .g.....m.nls or any kind have been mad. to GuarMtor Which WOUld limit or quality in any way tho Illrms oIlhis Guoranty; (b) this Guaranty is """"uted at Borrowers request and natal the request or Lender; (c) Guarantor has full pow.r, right and authority to enter into this Guaranty: (d) the provisions of this Guaranty do not contllct With or result in a default under any agreem.nt or ctrler Instrument binding upon Guarantor and do net result In a violation 03/02/2004 11:04 PA STATE BANK OPPERATIONS ~ 2387158 ,'<0,386 (;1009 12-28-2000 Loan No 63000137 COMMERCIAL GUARANTY (Continued) Page 2 01 any law, regulation, court d<lcree ... order appllcall1e to Guarantor; (a) Guarantor has nol and will nol. wtlhoullha prior written consent 01 Lender, sell. lease. aooign, encumber. hypothecatol, llllnsfar, or olhorwisa disposo of all, or subslanliaJly all of Guarantor's .....Is. or any inlarasltharein; (I) upon Londor's roquest, Guarantor will provida to I..8l1der ftnancial and Cledit InfClrmation in lorm QOCQplabla to Lender, and all such linancial information which currently has bean. end all future flnancial information which win be provided to Lender is ana will be Irlle and correct in all material ,.spoets and 1aJt1y present the 6nal1Clal condi~on of Guarantor as of the dates tha linancial intonnalion is provided; (g) no material adv",,,, chang. has ocourred In Guarantor's financial condition since tho date of the most recent financial statements prc\l'idad to Lender llnd no event has occ:urred which may. materially adversclly aHeet Guatantor's flnanc::ia) condition; (h) no Iitl9ation. olaim, investigation. administrative proceeding 0( similar action (including those fer, unpaid taxes) again!;! Guarantor is panding or thraatanad; Ol Landor has mads no "'p....nlalion to Guarantor as to the CfIldilworthinass of Borrower; and (1) Guarantor has es\abUshQd adQquate mGanS of obtainfng from Borrower on Iii conUnulng basJs Information ~9 Borrower's ~l1llnciai condilion, Guarantor ag.-- to keep adaqUllflilly in(ormQd from such means of any facts. events, or circumsflilnces whloh might in any way affect Guarantor's 'risks under this Guaranty, and GUatllntor furtMr agrees that Lender shall haw no obligation to disclose to Guarantor any information or documents acquirod by Lander in the course of Its reia~onshlp with Borrower, GUAIlAHTOR'S WAIVERS, Excepl as prohit>lfed by applicable laW, Guatllnlor waives any r1ght to require L.ender (a) to conlinue I.nding money or to oxIond other credit 10 Borrower; (ll) to maka any presanlrnenl, protesl, demand, or notice of any kind, includlng notice ot any nonpaym.nt of Ih. Indebtedness 0" of any nonpayment related to any coUateral, or notice of any action or nonaction on the part at BorrQwar, Landlilr, any sursty. andorsQ(. or other guaranlor in connoction with the Indebladness or in connection with tile ctlIlIlion of new or addilicnai loans or obligatlons; (e) 10 resort tor payment or to proceed cfirec1ly'or at once agalnsteny person. InclUding Borrower or 8.(I'f other guarantor; (d) 10 proceed diredfy against or exhausl any coIIaieral held bV Lander from Borrower, any other guarantor. or any other person; (e) to give notice of (he terms, time, and place of any public or privata sala cf pe",onal property security held by Lend... from Borrow.' or 10 comply with any other applicable provisions of Ihe Uniform Commercial Coda; (~Io pu",ue any other remedy wilhin Land61's power; or (g) 10 eommtt any act or omission of any kind, or at any time, with respact 10 any mailer whatsoallllr, If new or heroalter (a) Borrower shall be or become insolv&nl, and (b) the Indebtedness shall not at all times unlil, paid be fully secured by collateral ' pledged by Borrower. Guarantor hereby for._ waiveS and relinquishes In'lavor of Lender and Borrower, and their resp.clive successors, any claim or right to payment Guarantor may now have or hereafter have or acquire against BOn'OW8r, by subrogation Of otherwise, $0 that at no tlme shall Guarantor b. or become a "o",dllol" '" Borrower within the meaning of 11 U,S.c. saclion 547(b), or any suceassor provision 01 the Federal bankruptcy laws. ' GlJanlnlor also waives any and ,all rights or defenses arising by reason 01 (a) any ~one action" or "anlioodalicioncy" law or Sny other law which may prevent Lond... from bringing any action. indudlng a claim fer daficiency, 'agalnsl Guarantor, before or SIt.r Lender's commencement or completion of any foreclosure action, either judicially or by ~ of a power of sal.; (b) any e!eoijon 01 remedies by Lender which deslroys or otherwise edve",ely , effeols Guaranlo~s subroge~on rights or Gu.e.no.nlo~s rfghts to prcceed against Borrower tor reimbursement, including without limitaHon, any fQ$S ot righlo Guarantor may suffer by reason of any law limiting. qualifying. or discharging the IndebtodnesS; (c) any dlsabilily or other ds~nse of Borrower, of any.other guarantor. or of any .other person, or by rvasDn of the cassation of BorroWCIr's liabUity from any causa whatsoever. other than payment In fUll In Iogal lender, of the indebtedness; (d) any tight 10 c1Qjm discharge of,the Indebtedness on the basis of unJustltled impainnent otany coilateral for the Indebtedness; (e) any statutQ '01 limitations. if at any time any action or suit brought by Lender against Guaranlor is commgncQd. thCilrQ is outstanding indebtedness of Sorrowsr to Lender which. is not barred by any appficable statute of Dmltations; or (f) any dSfsnses given 'to guarantors at law Of in equily other than aclual payment and performarlCS 01 the Indebtedness, If payment is made by Borrower, w~elher voluntarily or otherwise, or by any third. party, on the Indebtedness and tJiClraafter Lender is forced to remlt the amount ot ttlat payment to BarTOw-us trushiae in banlctuptcy or to any similar person under any faderaJ or slate bankruptcy law or law fer the relief of deblo"', the Indebledness shall be considerod unpaid for Ihe purpose 01 enforcement of this GuarantY. . . . Guaranlor further Waives and ag""'" not 10 assert or claim at any Ume any deductions to the amount guaranteed under this Guaranly fo.' any daim of: setoff. counterclaim, counter demand, recoupment or similar right, whether such dalm, demand or right may be asserted by the Borrower. the Guaranlor, or both. GUARANTOR'S UNDERSTANDING WllH RESPECT TO WAIVERS. Guarantor warrants and agrees that each 01 the waiv... set lorth abev. is made with Guarantor's full knowledge of Us signlfica.nce and consequeoces a.nd that. under the circumstances, the waiwrs are reasonable and not contrary to publlo policy or iaw, If any such waiver 15 delennlned 10 be conhly to any applicabkl Jawor public pOiicy, such waiver shall be effective only to tlie Oldentpermillad by law or public policy, LENDeR'S RIGHT OF SETOFF. In addlU"" to 111110". upon and rights of setoff against the moneys, securities or othor property of Guarantor giver; to Lender by iaw. Lender shall hava, wtlh respect 10 Guarantor's obllgalions 10 L.nder undor thio Guaranly, and 10 the extent perillllled by law, a contractual security interest in and .. right of seto1l' against, and Guarantor hereby assigns, conveys, dellvlK1:. pledges~ and transfers to Lender all 01 Guaran!o(s right, UIIs and Interest in and to; all dllposils, mon.ys, securities and other property of Guarantor now or ha",afler in tha possession of or on deposit with Lender, whether held in a g.n.ral or special account or deposit. whether held joinUy wllh someone oIs., or whether held tor sef<ll<eaplng or otherwise. axcIuding however all IRA, I<eogh. and Irusl accourrls, Every such security interest and "ghl of ,..Iof! mey be e><ercised wtttlOUI demand upon or notice to GUl/antot. No security interest or right of setoff shall be deQmed to have been waIved by any act or conduct on the part 01 Lender or by any neglect 10 exercise such right "'setoff "',to anfClrca such securily Interest or by any delay in so doing, Every right of ..toff and " security inflilresl shall continue in full force and atloet until such right'" setoff or security intarest is speciticaJly waived or released by an Instrumant In wriling exacuted by Lender,'" " SLBORtllNATION OF BORAQWER'S DEBTS TO Gl/ARAIITOR. Guarantor agrees thallhe Indebtedness of Borrow... fo Lander, whether now existing or hereafter created. shail be prior to lilY claim that Guarantor may now have or haroattar acqui,. against Borrower, whether or not Borrower becomes insol""nl, Guarantor h.reby eocprllS&ly subordinates OIly elai", Guarantor may have against Borrower, upon any account whatsoever. 10 any ciaim Ihat Lender may now or horeaflar have against Borrow..., In' tile event 01 insolvency and consequent liquidation of, the .....ts of Borrower, Ihrough bankr\Jptcy, by an assignmenl for the benefit of credROB. by voluntary I/quidation, or otherwise, tho assats of Borrower applicallle ,to the payment of lhe clai!TUl of both Lander end G....ranlor shall be pald to Londer and shail be ti""applled by Lender 10 the Indebtedness of Borrower to Lender. Guara"tor does hentby assign to t..ender all claims which it may have or acquire against Borrower or against any assignee or trustee In bankruptcy of Borrower; provided ,however. that such assignment shall ba afIoclive only fer the p..-pose of aSSuring 10 Lender full payment in legal lender ot Ihe Indebtedness, If Lender so requasls, any nofes or credil egreem.nJ!r now or hetellrler evidencing any debls or obligations of BOlTowar 10 , Guarantor shall be marked ,with a iegand thatlhe same era subject to this Guaranty and shall be delillllred to Lend..., Guarantor agrees, and Lander hergby is authorl.zed. In the name 01 Gtntantor. from time to time to execute and fOe financing statemonts and continuation statements and to OQICute such other documents and to take suc;h other actlons as Lender _.ms J1el;es$ClI)' or appropriate to perfecl:r preserve and enforce Its rtghts under thJS Guaranty, MISCELLANEOUS PROVISIONS. Tho following mlsce!/alleous prOVisions are a parI of Itlis Guoranly: Amendments. This GlJSJllnty, together with any Rs:Iat9d Documents, constihrtes the o"tirB understanding and agreement of the parties as to the maRa", ..1 forlh in this G....ranly. No '-'ral/on of or am.ndmenllo this Guaranty shall be effto--.'e unless given in wriling and signacf by the party or parties sought to be Charged or bo, :"y the al~t1o., or amendment. AppllcaDle LaW. Thi:s Guaranty has been delivered to Lander and acceoled bv lender In thQ (;ommonw,a~rth ,,1 Pl2nnll;.v!\P.:lnJSl If thpl"IlI I~ A 03/02/2004 PA STATE BANK oPPERATIoNS ~ 2387158 11:04 12-28-2000 Loan No'63000137 COMMERCIAL GUARANTY (Continued) NO. 386 {;I010 Page 3 lawsuit, Guarantor agrees upon Lendar's request to submit to the Jurisdiction of the courts of Cumborland Coun1y, Commonwealth of Pennsylvanlll. Tnis Guaranty shall be governed by aM construed in accordance with the laws oIlhe Commonwealth Of Pennsylvania, Altorney.' Feu; Elpen..... Gua",ntor ag,.. to pay upon demand all of Lander's costs and expe"..., including attorneys' fees and Lend",'s lagal expenses, Incurred In connection with the enfOfCQm9nt 01 thIs Guaranty. )..ender may pay someone elsa to hCllp .nforce this Guaranly, and Guarantor shin pay the c:osls and expenses 01 such enforcement. Costs and expenses include Lendar's attorneys' fees and legal expenses whether or' not thefe is a lawsuit, including attorneys' lees and legal """an.... for bankruptcy prcceedlngs (and Inciuding snorts to modify cr vacate any automatic slay or Injunction1appeaJs, and any anticipatad posHudgmanl collection services, Guarantor also shall pay all court oosts and such additionai Tees as may be directed by the court. Notice', All noticss rsquirsd to be given byeithe, party to the olher under this Guaranty shall be in writing, may be senl by telefacsimile (unless otherwise required by law), and shell be affective when ac1ually delivored or when deposited with a nationally recognized overnighl courier, or when deposited In lhe Unlled States mail, nrst class poslAge prepaid. addressed to the party to whom the notice Is to be given at lhe address shown above or 10 such other address.. as either party may designate to the other in writing, II there is more than one Guarantor, notice to any Guarantor will constitute notice to aU Guarantors, For nolice purposes, Guarantor QQrB8S to icQQp Lend.. Informed al all times of Guarantor's cumantadd~, , Inlerprelalion. In 011 casllS whera Ill.... is more than one Borrower or Guarantor, lhen all words used In this Guaranty in the singuiar shall ba desmed to have been used In the plural where the context and construction $0 requne; and where there is mQI'Q than ene Borrower named in this Guaranty or when this Guaranty is QXQOuted by more than one Guarantor. the words "'BorrowW'" a.nd "Gua.rs.nlcr" respectively ,haU mean all and anyone or more of them, Tne words "Guarantor; "Borrower," and "Lander" includa th<l heirs, successors, aSSigns, and Inlnslorses 01 each cf them. Cap~;)n headings in this Guaranty are for convenience purposes only and are not to be used to interpret or dafirlQ Ihs provisions at this Guaranty, If a court 01 competent jurisdiction finds any provision 01 IhlsGuaran1y to be invalid or unenfOlC<llabIe as to any person o<.:lJcu",stance, such flnding shall'nol render that provision invaiid or unenfOrceable as to any other persons or circumstances, and all provisions of this Guaranty in all other respects,shall ramain valid and enforceable. .11 anyone or more of Borrowar or Guarantor are corpDnltions or partnerships, it is not necessary for Lende' 10 inquire Inlo Ihe powe... of Borrower or Guarantor or 01 the oll!ce(S, directors. part"""" or agents acting or purporting 10 act en thair behalf, and any Indebtedness made or eraatod in relianoo uj)On the prefessed exercise at such POWQfS shall ba guana.n!eed under this Guaranty, , Wiilver, Lender shall not be deemed to have waived any rights under this Guaranty unJess such waiver is given In writing and signed by Lander, No delay or omission on lhe part'of Ltonder in sxercising any right shell operete as a waiver 0/ such right or any o1her right. A waNer by Lander of a provision 0/ lhis Guaran1y shall nol prejudice O( constitute a waiver of L.emlar's right olh<lewi.. to demand sfricl compliance with thaI provision or eny othe( provision oIlhis Guaran1y. No prior waiver by Lendar. nor eny cowse of cIeaIlng between 1.ender and Guamntor, shall conslilule a welver of IIfIY of Lende~s rights or of any 01 Guarantor's obligations as to any future transactions, Whenever the consent of Lender Is required under this Guaranty, the granting of such consent by Lender in any rnsta,nes' shaIl not constitute contlnwog consent to subsequent instances where suoh consenllS required 'and in all cases such consanl may be granled or withheld In lhe SOle discretion 01 Lander, OEfAlLT INTEREST RATE. In the evenl of defauit fO( which Lender does not accelerate the Loan, inoludil'l9the IaIlure of Borrower to providelhe financial statements as required hereunder or under lIle Loan Agreemenl, the applicable interest rate on the Loan, for a period baginning Ih_ (3) dal'" attar. written noHce of'such default and ending upon thQ curing of~d noticed defaul~ shall increase one quarter Qf ona petcerd (.25'%' for the first thirty (30) deys of seid default and inaease an additionai one quarter, (,25"') during each thirty (30) day periOd Ih.....1Ior du~l'I9 which the notice defauit continues. Such 'defauit interest rates shan apply 10 lhe oU!slandine principal balance 01 the Loan, Upon the curing of the noticed default, the Intarm rate on the Loan shall revert 10 th. initially QQreecHlpon inlerast rate etfective on the date on which Ihe default is cured, FINANCIAL ST mMENTS. Furnish Lender with. as soon as available, bul in no event later than one hundred twenty (120) days alter lhe end of each nseel year, Gua",ntor's personal financial statement and federal income lex """rn, All nnaneisl reports required to be provided uhder Ihis Agreement shaJl be prepared in accordahce with generally accepted accoun1lng principles, applied on COl'ISistenl basis, and cer1lfled by Guarantor as being true an~ correct. . CONFESSION 'OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AtmiORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF AI(( COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER A DEFAULT UNDER THIS GUARANlY, AND WITH OR WITHOlIT COMPLAINT FILED. AS OF ANY lERM, CONFESS oR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BAlANCE OF THIS GUARANlY, ALL ACCRUED INTEREST, LATE Ct-IARGES, AND Ar.N AND ALL AMOUNT'S EXPENDED OR ADVANCED BY LENDER RELATING TO Ar.N COLlATERAL SECURING THE INDEBTEDNESS TOGETHER WITH INTEAEST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN P!;RCENT (10"') OF THE UNPAID PRINCIPAL BAlANCE AND ACCRUED IJllTEREST FOR COLLECTION, SlIT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOllARS ($500) ON WHICH JUCGMENT OR JUDGMENTS ONE OR MORE exeCUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOiNG, THIS GUARANTY OR A COPY OF THIS GUARANTY VEAIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT, THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF lliA T AtmiORITY, BlIT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF All. AMOUNTS DUE UNDER THiS GUARANlY, GUARANTOR HEREBY WAIVES ANY RIG~ GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO EXEOCUl10N OF THE JUDGMENT, AND STATES lliAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTlON OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSE~. EACH UNDERSIGNED GUARANTOR ACl(NOWLEOGES HAVING READ ALl THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS lERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE'UPQN GUARANTOR'S EXECUTION AND ,DalVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION Tln.ED "DURATION OF GUARANTY." NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE, TillS GUARANTY IS DATED DECEMBER 21, 2lIClO. THIS GUARANTI HAS BEEN SIGHED AND SEALED BY THE UNDERSIGNED. GU~~~~I,/..~:li_ ."..,. .. , ~.j("_ X t:::!Jt::~~i}!j~;;,........_\..~..._.....l_.........."..~..:~';rftlJl'~,. enE.) 1.~IlirI,DiII8r ' _..,..:f.,..~....~,..,..- '-P [\\ X 1l'D>,~l'o}''r~'ii\",,;:",,:.:;:.:~......._,,!.;;...z::.......w.w..j.. Thelma L. DJller 0:' ',.""" ,...""..",, ::. .....,~..w...~.~.P.A.'n) 03/02/2004 11:04 PA STATE BANK oPPERATIoNS ~ 2387158 NO, 386 1>011 12-26-2000 Loan No 63000137 COMMERCIAL GUARANTY (Continued) Page 4 INDIVIDUAL ACKNOWLEDGMENT STATE OF ??ennss/ /t/ 0''11' '? , COUNTY OF /)DJ ."r4i, '^- - I } )88 ) On this, the ;}8:1-";,yof lkQ/'"kr , 20 cJO, boloro mo, ~yA.JE, /f ll.{/rV1J...EY .Ihe undersigned NataJy Public, personally appllalBd Wllller I. Diller ..d Thelllla L. Dillor, known to me (or sallsfactorily proven) to be the person whose names are subscribod to Ih. within instrument, and acl(nowledged thallhey oxeouled the same fer the purposes ttleroin conlainod. , In Witness whereol, I horeunlo selllljl hanG and OffiClal_, '\'\, L- // ' NO...~SeaI ,. ~c../Y~~ , Jayne K, Bnnldey, Nota'Y Public ~~ ,. _. j,_ ' . HarT'lSb.u~. Dauphin County, PA _ , My Comm....'On Exoires July 20, :2002, ,0 PubDc In and for the Sfa~ LAseR MO, Reg. U,S.,Pa'. &. T.M. Off.. V.~. :usa (C) CClncentro: 2000 AllrJ!ilnl$ r&liet"'.d.IPA-E!ZQ E3.21i1 Fa..Zg tNOIAH.LN RS.OVL} 03/04/2004 17:36 PA STATE BANK oPPERATIoNS ~ 2387158 TIHI"'\:!:;,1"4 ~.... .L~' '::'..::l~-J r~I'1Ur: b ",_jU,..,..., rL. NO. 434 1>003 r., VER'IFICA TION r. WIM VAN OLDEN, S8IliOt vice-Pre4ident of PENNSYLVANIA STATE BANK. v~ tluit ':be $tat~ent~madeig~afM:&I;Ii1lBll~~~M4~~, 1~1hIJfAI"'IJI~Mt,}IlIln~ ~ to tll-e pelUlltie1 of 18 Pa. C, s. ~4904, (8IS#agm lIImWOm tmlfiOltiOll to autboriti"" PENNSYLVANlA STAn: BANK 'OM/ Wim Van Oldlm Ser.ior Vicc-Presideftt Dated: ;I~f 3040084 F;Il.~Q\PSll\CQNt'lU~ll7c1l4Wl14,a4~ PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, LLC" and WALTER I. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors : CIVIL DIVISION. LAW Defendants : CONFESSED JUDGMENT TO: INDIAN SPRINGS ASSOCIATES, L.L,C., Defendant You are hereby notified that o~vtl. g ,2004, Judgment by confession was entered against you in the sum of$I,242,891.40 in the above-captioned case. DATE~' II 2004 c~ i!h Prothonotary U 'l,. ~ YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP, I hereby certifY that the following is the address of the Defendant(s) stated in the Certificate of Residence: 6046 EDWARD DRIVE, MECHANICSBURGd,.....,..~ Robert D, Kodak, Attorney for Plaintiff A INDIAN SPRINGS ASSOCIATES, L.L,C., Demandado(s) Par este media sea avisado que en el dia de $ I ,242,89 1.40 del case antes escrito, de 2004 un fallo por admision fue registrado contra usted por la cantidad Fecha: el dia de de 2004 Protonotario LLEVE ESTA DEMANDA A UN ABODAGO IMMEDlATAMENTE, SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUYA D1RECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUlR DONDE SE PUEDE CONSEQUlR ASISTANCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY A VENUE CARLISLE, PA 17013 '''" "'.",,", (OW, .....".. ~ Robert D, Kodak, Abogado(a) de Demandante(s) PENNSYL VANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, LLC, and W ALTER L DILLER and THELMA L. DILLER, each Individually as Personal Guarantors CIVIL DIVISION - LAW Defendants CONFESSED JUDGMENT TO: WALTER I. DILLER, De~ndant You are hereby notified that on "ll~ f in the above.captioned case, ,2004, Judgment by confession was entered against you in the sum of$I,242,891.40 DATE:~ g 2004 r~ <ct~ Prothonotary (j iY YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP, I hereby certifY that the following is the address of the Defendant(s) stated in the Certificate of Residence: 6046 EDWARD DRIVE, MECHANICSBURG, PA A WALTER I. DILLER, Demandado(s) Por este media sea avisado que en el dia de $1,242,891.40 del case antes escrito, de 2004 un fallo por admision fue registrado contra usted por la cantidad Fecha: el dia de de 2004 Protonotario LLEVE EST A DEMANDA A UN ABODAGO IMMEDIA TAMENTE, SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUlR DONDE SE PUEDE CONSEQUlR ASISTANCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY A VENUE CARLISLE, PA 17013 (717) 249-3166 or (800) 990-9108 PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, LLC" and WALTER L DILLER and THELMA L. DILLER, each Individually as Personal Guarantors CIVIL DIVISION . LAW Defendants CONFESSED JUDGMENT TO: THELMA L, DILLER, Defendant You are hereby notified that on ~g in the above-captioned case. , 2004, Judgment by confession was entered against you in the sum of $1 ,242,89 1.40 ~K~, Prothonotary Q t YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE, IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP, DATE:~h.. t 2004 I hereby certify that the following is the address of the Defendant(s) stated in the Certificate of Residence: "",row""",,,",. ~CHA"C"C~~ Robert D, Kodak, Attorney for ~ A THELMA L. DILLER, Demandado(s) Par este media sea avisado que en el dia de $1,242,891.40 del case antes escrito, de 2004 un fallo por admision fue registrado contra usted por la cantidad Fecha: el dia de de 2004 Protonotario LLEVE EST A DEMANDA A UN ABODAGO IMMEDIA TAMENTE. SI NO TIENE ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA 0 LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJO PARA AVERIGUlR DONDE SE PUEDE CONSEQUlR ASISTANCIA LEGAL, CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY AVENUE CARLISLE, PA 17013 (717) 249-3166 or (800) 990-9108 Robert D, Kodak, Abogado(a) de Demandante(s) ~ ~ ~ u ' C;><") \, ...... -~ ~ ~ ~ -......., ~ Ie:' ""= (';,.v r--... ____ ~I ~ ..; --..... , u, --c::: ,', ' "'^ C" "-> i5 .r.- o .." :.,,-1 i'il,J] "'T""~n ~r;b I C.) ,', i :~C) ~,~~ , ) ; -, C-'. PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, 64- qql ~ INDIAN SPRINGS ASSOCIATES, LLC" and : CIVIL DIVISION - LAW W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants : CONFESSED JUDGMENT NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANTS' RIGHTS TO: INDIAN SPRINGS ASSOCIATES, LLC., DEFENDANT A Judgment in the amount of$I,242,891.40 has been entered against you and in favor of Plaintiff without a 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 LA WYER AT ONCE. IF YOU DO NOT HA VE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW, THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. 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 REDUCE FEE OR NOT FEE, CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY A VENUE CARLISLE P A 17013 (717) 249-3166 ROBERT D, KODAK, ESQUIRE POST OFFICE BOX 11848 HARRISBURG. PA 17\08-1848 (717) 238-7151 A TTORNEY FOR PLAINTIFF PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, LLC" and W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants : CIVIL DIVISION - LAW : CONFESSED JUDGMENT NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANTS' RIGHTS TO: W ALTER I. DILLER, DEFENDANT A Judgment in the amount of$I,242,891.40 has been entered against you and in favor of Plaintiff without a 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 LA WYER AT ONCE, IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW, THIS OFFICE CAN PROVIDE YOU WITH INFORMA nON ABOUT HIRING A LAWYER, 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 REDUCE FEE OR NOT FEE, CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY A VENUE CARLISLE PA 17013 (717) 249-3166 ROBERT D, KODAK, ESQUIRE POST OFFICE BOX 11848 HARRISBURG, PA 17108-1848 (717) 238-7151 A TTORNEY FOR PLAINTIFF PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, : NO, INDIAN SPRINGS ASSOCIATES, LLC" and W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants CIVIL DIVISION - LAW CONFESSED JUDGMENT NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANTS' RIGHTS TO: THELMA 1. DILLER, DEFENDANT A Judgment in the amount of $1 ,242,891.40 has been entered against you and in favor of Plaintiff without a prior notice or hearing based on a Confession of Judgment contained in a written agreement or other paper allegedly signed by you, The Sheriffmay 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 LA WYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW, THIS OFFICE CAN PROVIDE YOU WITH INFOR'MA TION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFOR'MA TION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCE FEE OR NOT FEE, CUMBERLAND COUNTY BAR ASSOCIATION TWO LIBERTY A VENUE CARLISLE PAl 70 13 (717) 249-3166 ROBERT D, KODAK, ESQUIRE POST OFFICE BOX 11848 HARRISBURG, PA 17108-1848 (717) 238-7151 ATTORNEY FOR PLAINTIFF Q ..., CO, C:;;) o -'I.~ --'... ,,,, ;-;~p -r"I-;'1 -,:,t.--:J L),L -., ...~) ~J= =-H I~;;r~ :>0 I C0 -n ..f~'" 0" PENNSYLVANIA STATE BANK Plaintiff : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA v, NO, OLf- C(Cj 1 ~ INDIAN SPRINGS ASSOCIATES, LLC., and W ALTER 1. DILLER and THELMA L. DILLER, each Individually as Personal Guarantors Defendants CIVIL DIVISION - LAW CONFESSED JUDGMENT PLAINTIFF'S AFFIDA VITIA VERMENT CONFESSION OF JUDGMENT FOR MONEY (.f) Pursuant to Pa, R.C,P, No, 295 I (1)(2)(ii), I certify that thisjudgment is not being entered by confession against a natural person in connection with a consumer credit transaction, (a) A consumer credit transaction means a credit transaction in which the party to whom credit is offered or extended is a natural person and the money, property or services which aTe the subject of the transaction are primarily for personal, family or household purposes, CONFESSION OF JUDGMENT FOR CONFESSION OF REAL PROPERTY ( ) Pursuant to Pa, R,C,P, No, 2971(1)(1), I certify that this judgment is not being entered against a natural person in connection with a residential lease, +++++++++++++++ The above certification is made subject to the penalties of 18 Pa,C,S, 4 04 relating to unsworn falsification to authorities, 3/~'I Dated: Robert D, Kodak, Esquire Attorney for Plaintiff I.D, No, 18041 Address: Knupp, Kodak & Imblum, P,C, 407 North Front Street Post Office Box 11848 Harrisburg, P A 17108-1848 (717) 238-7151 Fax: (717) 238-7158 ') ~ () ....., = = ..,.. ~: :::0 o -q ..., ::r:~ rnp ~m ~~ <)rn C) 0-' Robert 0, Kodak, Esquire Supreme Court 1.0, 18041 KNUPP, KODAK & 1M BLUM, P,C, Post Office Box 11848 407 North Front Street Harrisburg, P A 17108-1 848 717-238.7151 Fax: 717-238-7158 email: robert.kodak@verizon.net Attorney for Plaintiff PENNSYLV ANIA STATE BANK Plaintiff v, : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, 2004-00997 INDIAN SPRINGS ASSOCIATES, LLC" CIVIL DIVISION - LAW and W ALTER 1. DILLER and THELMA L. : DILLER, each Individually as Personal Guarantors Defendants CONFESSION OF JUDGMENT TO THE PROTHONOTARY: PRAECIPE Please mark the above-captioned Judgment as settled and satisfied AS TO DEFENDANTS, WALTER I. DILLER and THELMA L. DILLER, each Individually, ONLY. TO Cumberland County Prothonotary Dated: September 21. 2005 (~. Robert D, Kodak Attorney I.D, No, 18041 Attorney for Plaintiff (:J ~ ,...., ~ If?. Q <:0'" c:::.) N '\. Soc;; <oJ' :::;:! g, U> ~L"'\] r'l n1i=;; ~ " -0 -cld "" '0, ;::~),Q ~ -0 ....l :',.J-\) -.:;. ,.~., I - ..,., ::'1-~). ",en G'- r- F :::;~: ~r .J::l ~ <f? ~~\ ;,"?' - g ~ G...i - cr- t) --L. , ~ SAlOIS I SHUFF, FLOWER & LINDSAY ATIORNEYS-AT-LAW 26 W. High Street Carlisle, PA PARTIAL RELEASE OF JUDGMENT LIEN WHEREAS, on March 8, 2004, confession of judgment was entered in the amount of $1,242,891,40 in favor of Pennsylvania State Bank and against Indian Springs Associates, LLC in the Court of Common Pleas of Cumberland County, as of Civil Term, 2004, No, 997; ("judgment"); and WHEREAS, Indian Springs Associates was the owner of the following property situate in Cumberland County as the time of entry of the judgment: ALL THAT CERTAIN tract of unimproved land situate in Township of Southampton, Cumberland County, Pennsylvania, which is designated as Lot No, 159 on a Fiml Subdivision Plan of Indian Springs Associates, by Eric L. Diffenbaugh, registered surveyor, dated December 14, 2001 and recorded September 12, 2002 in the office of the Recorder of Deeds of Cumberland County, Pennsylvania in Plan Book 85, Page 137 bounded and described as follows, to wit: BEGINNING at a point on the Northern line of Tomahawk Drive (a private drive) at corner of Lot no, 163 on the above referenced plan; thence North forty-four degrees 'en minutes fourteen seconds East (N 440 10' 14" E), one hundred twenty-four and seventy-seven hundredths (124,77) feet to an iron pin at corner of Lot No, 149 and Lot No,; 63; thence along Lot No, 149 North fifty degrees fifty-three minutes thirty-six seconds 3ast (N 500 53' 36" E), sixty-eight and sixty-four hundredths (68,64) feet to an iron pin at corner of Lot No, 158; thence along Lot No, 158 South fifty-seven degrees fifty-one minutes eight seconds East (S 57051' 08" E), one hundred fifty-one and sixty- eight hundredths (151,68) feet to an iron pin on the northeast side of Cherokee Drive (a private ,;rive); thence along the western line of Cherokee Drive South thirty-two degrees eight minutes fifty-two seconds West (S 32008' 52 W), one hundred sixty-six and no hundredths (166, 00) feet to an iron pin on the Western line of Cherokee Drive and Northern line of Tomahawk Drive (a private drive); thence by a curve to the right having a radius of twenty-five and no hundredths (25,00) feet with a chord bearing of South seventy-seven degrees eight minutes fifty-two seconds West (S 770 08' 52" W) having a cord length of thirty-five and thirty-six hundredths (35,36) feet, a distance of thirty-nile and twenty-seven hundredths (39,27) feet on the arc to an iron pin on the Northen line of Tomahawk Drive; thence along Northern line of Tomahawk Drive; thence North fifty-seven degrees fifty-one minutes eight seconds West (N 570 51' 08" W), one lUndred thirty-two and sixty-five hundredths (132,65) feet to an iron pin on the Nort1 West side of the Tomahawk Drive; thence by a curve to the right having a radius o! two hundred twenty-five and no hundredths (225,00) feet with a chord ~ SAlOIS SHUFF, FLOWER & LINDSAY ATIORNEYS-AT.LAW 26 W. High Street Carlisle. PA II bearing of North fifty-two degrees twenty-seven minutes forty-five seconds West (N 520 27' 45" W) having a cord length of forty-two and twenty-seven hundredths (42,27) feet, a distance of forty-two and thirty-three hundredths (42,33) feet on the arc to an iron pin at corner of Lot No, 163, being the first mentioned point and place of BEGINNING. CONTAINING 0,7797 of an acre or 33,965,65 square feet. vVHEREAS, said property was sold by Indian Springs Associates, LLC to Southern Cumberland Water Association on June 3, 2004 for nominal consideration; V\'HEREAS, the judgment presently operates as a lien on the above-described property of Southern Cumberland Water Association; NOW, therefore, at the instance and request of Indian Springs Associates, LLC, and in consideration of the sum of $1,00, receipt of which is hereby acknowledged, and intending to be legally bound, Pennsylvania State Bank does, for himself or herself, his or her heirs, executors and administrators, covenant, promise, and agree with Indian Springs Associates, LLC, his or her heirs and assigns, that he or she will not attach or levy upcn, sell or dispose of, claim or dernand the above-described property free and clear from the judgment; provided, however, that nothing herein contained shall invalidate the lien or security of the judgment upon any other property of Indian Springs Associates, LLC in Cumberland County or elsewhere, IN WITNESS WHEREOF, I have set my hand and seal this 20 . day of July, 2005, PtZNNhL.V/J~',A ril+rl'i 8~MI<- Q())/V\'\-~, By: 11 ~"';,.,., V :M ufckc.J Title: S....A,v,'- v....... fJ/e-1,ek,AT ~......\ R. i-w"'I' V "C( ~M+-J....4l ~.("'- t,\ \I~-'" s-f...e.. A..- t ~ SAlOIS SHUFF, FLOWER & LINDSAY AlTORNEYSeATeLAW 26 W. High Street Carlisle, P A COMMONWEALTH OF PENNSYLVANIA: : ss, COUNTY OF CUMBERLAND f1- V:> day of .J' '" 11 , 2005, before me, the On this, the undersigned officer, personally appeared A, i/IJ' \.", v ~." Ql c4 ~ who acknowledged himself to be the Sc..., ,'.- V \ '-<- P,,,,,-, . .-4- ~ +- Pennsylvania State Bank, a corporation, and that he as such oFf, v-r of being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of said corporation by himself as such $'~~;~ r V;"" f ~. ;,j;, ",) Il'J WITNESS WHEREOF, I hereunto set my hand and official seal. NONWIW KIIlSlIN . HAY NoIaIy NIle IlOROUllHOFCAII'HIL. Q..IlE. ...ANDCXlUNTY Mv CommlIIIoI. &pM Oct '... 2G07 (SEAL) f I, .. ,~..," '''''''''''~ ,-.,...... .' _.....,,"0," .............;-;.' ; \._ ...J'" C......""""',... (:::I ""l () r-' 0 1- ~ I.:::::> <:-~..,;, .." 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