Loading...
HomeMy WebLinkAbout08-7503r JANET W. HARTMAN, Plaintiff vs. HERSHEY-PHILBIN ASSOCIATES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 66 - ?'? t. C-an CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in ejectment in favor of the Plaintiff and against the Defendant for possession of the real property described as follows: Defendant's undivided one-third interest, as a tenant in common, in the property known and numbered as 2101 Orchard Road, Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania, as is more particularly bounded and described on Exhibit A which is attached hereto and made a part hereof. Date: Zq Attorney for Defendant, Hershey-Philbin Associates, Inc. Supreme Court ID 17225 525 North 12th Street Lemoyne, PA 17043 (717) 761-5361 y EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and. described as follows, to wit: MMMM_ BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, -said point being 30.1"1 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. GUIDO, FF & LAND clcet Sbftt Hill, PA 13 C) r+? C7) tv 0 ,m err. JANET W. HARTMAN, ) Plaintiff ) VS. ) HERSHEY-PHILBIN ASSOCIATES, INC., ) Defendant ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW ec,cCTE NO. o8 - 7s w COMPLAINT FOR CONFESSION OF JUDGMENT IN EJECTMENT AND NOW comes the above-named Plaintiff, by her attorney Samuel L. Andes, and makes the following Complaint for Confession of Judgment in Ejectment in this matter, based upon the following: 1. The Plaintiff is Janet W. Hartman, an adult individual who resides in New Cumberland, Cumberland County, Pennsylvania. 2. The Defendant is Hershey-Philbin Associates, Inc., a Pennsylvania corporation which maintains its principal offices at 2101 Orchard Road in Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania. 3. By an Installment Agreement of Sale dated 24 October 1994, between the Defendant and Robert G. Hartman, Jr., Defendant agreed to purchase a one-third interest in premises known and numbered as 2101 Orchard Road in Camp Hill, Pennsylvania, which premises were more particularly described in Exhibit A attached to the said Agreement, and pay for that property the sum of $148,000.00. A photostatic copy of the Installment Agreement of Sale, which is a true and correct reproduction of the original agreement, is attached hereto and marked as EXHIBIT A. 4. By his Deed dated 19 September 1996, the said Robert G. Hartman, Jr., conveyed the entire property which was the subject of the aforementioned agreement, and thereby assigned and transferred his interest in said agreement, to his wife, Janet W. Hartman. Janet W. Hartman is the Plaintiff herein. 5. Paragraph 15 of the aforementioned agreement of sale contains a warrant of attorney permitting a confession of judgment in ejectment in the event of Defendant's default and specifically states: Said Seller, at Seller's option among other remedies available to Seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recovery of said premises; in such case, Buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere, to appear for Buyer and confess judgment of ejectment and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave of court) for the costs and a 5% attorney's commission or fees, waiving all stay and exemption laws. 6. Defendant is in default of its obligations under the agreement of sale as follows: A. Payment due for the month of February 2008 was not made until April of that year. B. Payment due for the month of March 2008 was not made until May of that year. C. Payment due for the month of April 2008 was not made until August of that year. D. Payments due for the months of November and December of 2007 and January of 2008 were not paid until March of 2008, making those payments all at least sixty (60) days late. E. The payments due for the month of May 2008 and subsequent months have not been paid. Pursuant to Paragraph 1 of the aforementioned Agreement, the monthly payments, in the amount of $1,234.80 were to be paid on the 1 n day of each month. Asa result of the failure to make these payments, the amount due is $8,643.46 for unpaid installments due as of the date of this complaint. 7. Paragraph 15 of the aforementioned Agreement requires Plaintiff to give Defendant at least thirty (30) days' prior notice before commencing an action in ejectment. Plaintiff, through her attorney, gave that notice to Defendant, through its attorney, by a Notice of Default dated 19 September 2008 and mailed that day. A copy of said Notice of Default is attached hereto and marked as EXHIBIT B. 8. No judgment has been entered on the aforementioned agreement in any jurisdiction prior to this action. 9. The judgment entered in this matter is not entered against a natural person in connection with a residential lease. 10. The property for which Plaintiff seeks a judgment of ejectment is the Defendant's one-third interest, as a tenant in common, in the property known and numbered as 2101 Orchard Road in Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania, and is more particularly bounded and described on EXHIBIT C which is attached hereto and made a part hereof. WHEREFORE, Plaintiff demands a judgment in ejectment against the Defendant for the property described in EXHIBIT C attached hereto. Samuel L. Andes Attorney for Plaintiff Supreme Court ID 17225 525 North 12'' Street Lemoyne, PA 17043 (717) 761-5361 I verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unswom falsification to authorities). Date: S NoWige4 2,vo8 - al W.HARTMAN EXHIBIT A INSTALLMENT AGREEMENT OF SALE UIDIS, GUIDO, SNUFF & MASLAND '•109 Market Street Camp Hiii, PA THIS AGREEMENT made as of the -=-? day of 1994 by.and between ROBERT G. HARTMAN, JR. of Cumberland County, Pennsylvania, hereinafter referred to as "seller" and HERSHEY- PHILBIN ASSOCIATES, INC. of Dauphin County, Pennsylvania, here- inafter referred to as "buyer," WITNESSETH: THAT, in consideration of the mutual covenants and agree- ments hereinafter contained, seller agrees to sell and convey, and buyer agrees to purchase, ALL that certain tract or parcel of land in Lower Allen Township, Cumberland County, Pennsylvania, being a one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, and the curtilage as more particularly described and set forth in Exhibit "A" attached hereto and incorporated herein by reference, upon the following terms and conditions: 1. CONSIDERATION - The purchase price to be paid by buyer shall be the sum of $148,000, to be paid as follows: A. $14,800 in cash at the signing and delivery of this agreement, the receipt whereof is hereby acknowledged; B. The balance of $133,200, together with inter- sst at the rate of 7.5% per annum shall be due and payable-within °iy years from the date hereof. Commencing on the 1st day of , 1994, and thereafter on the 1st day of each lonth, buyer shall make payments of $1,234.80 to be applied first •o interest as aforesaid and the balance to principal until both ?rincipal and interest have been fully paid. Nothing herein con- .ained shall alter or affect the maturity date of this agreement. t 2. PREPAYMENT - Buyer shall have the right to prepay all or any part of the unpaid principal balance without penalty for such prepayment, at any time and from time to time on any regular installment due date, together with interest on such prepayment to the date of payment. At the time of payment in full, together with interest as aforesaid, buyer shall be enti- tled to receive title to the subject premises from seller, and seller shall be obligated to convey title to the subject premises to buyer in the manner set forth hereinafter in Paragraph 9. 3. APPORTIONMENT OF REAL ESTATE TAXES RENTS AND EXPENSES - Local real estate taxes shall be apportioned on a fiscal year basis to the date of execution of this agreement. Thereafter, real estate taxes shall be apportioned in conformity to a tenants in common ownership agreement attached hereto as Exhibit "B" and made a part hereof. SAIDIS, GUIDO, SNUFF & MASLAND 2109 Market Street Camp Hill, PA 4. TRANSFER TAXES - Seller shall pay all state realty transfer taxes calculated on the agreed consideration at the rate applicable on the date of this agreement; buyer shall pay any local transfer tax, any documentary tax, and any increases in the rate of the state tax from that existing at the date of this agreement. Said conveyance'stamps and taxes shall be furnished or paid for at the time of delivery of the deed. 5. POSSESSION AND OCCUPANCY - Buyer shall be entitled to possession of the third floor of the premises and an unspeci- fied one-third, but not less than 20, of the parking spaces in the parking areas adjacent to the premises upon execution of this agreement in conjunction with the rights of the seller in said parking areas. 6. RECORDING - This agreement may be filed of record in any public office, as appropriate. 7. LEGAL TITLE - Upon payment in full, seller, his heirs and assigns, is obligated to convey to buyer, its heirs, successors and assigns, legal title to the premises free and clear of all liens, encumbrances and easements,.excepting the following: existing building restrictions, ordinances, easements of roads, privileges or rights of public service companies, if any, agreements or like matters of record, and easements or restrictions visible upon the ground, and a first mortgage to Pennsylvania State Bank in the original amount of $238,400, which obligation shall remain the obligation of seller without any contribution by buyer. Otherwise, the title to the described real estate shall be good and marketable, such as will be insured by a licensed title insurance company at regular rates. Legal title shall be conveyed by fee simple deed with a special war- ranty. In the event seller is unable to give a good and marketable title such as will be insured by a licensed title insurance company subject to the aforesaid, buyer shall have the option of taking such title as seller can give, without abatement of price, or of being repaid all moneys paid by buyer to seller on account of the purchase price, together with such reasonable costs of searching the title as buyer may have incurred. In the latter event, there shall be no further liability or obligation as to either party concerning this agreement which thereafter shall be null and void. Buyer shall be entitled to recover the aforesaid costs of title search only if buyer obtained an attor- ney's opinion of condition of title and notified seller of any objections within thirty (30) days after date hereof. 8. MAINTENANCE REPAIRS INSURANCE AND TAXES - Buyer agrees that buyer, at its own expense, will maintain the third floor of the premises in a reasonable state of repair at all times and will make any improvements to said premises without contribution from the seller. Buyer agrees to make any and all repairs to the third floor which, from time to time, become necessary or are mandated by federal, state, county or municipal law, ordinance or code in effect now or may become effective in the future. 3AIDIS, GUIDO, SNUFF & MASLAND 2109 Market Street Camp Hill, PA Common maintenance, repairs, insurance and taxes relating to the premises as a whole shall be made in accordance with the tenants in common ownership agreement. 9. IMPROVEMENTS AND.ALTERATIONS - No major improve- ments or alterations shall be made to the premises without the prior written consent of seller, which consent shall not be withheld unreasonably. Buyer agrees that seller or seller's agents shall have the right at all reasonable times of the day and upon reasonable notice under the circumstances to enter the premises for the purpose of inspection to determine whether buyer has complied with the terms hereof. In the event of buyer's default as to the terms of this agreement, any and all improvements and additions made to the subject premises shall be and remain a permanent part of the premises;' they shall not be removed by buyer and buyer will not be entitled to any reimbursement therefor; nevertheless, if such improvements, alterations or additions were made without the written prior approval of seller, buyer will remove same within shirty (30) days, upon written notice from seller so to do. In :he event of such notice to remove these items, buyer will repair .he surfaces from which such improvements were removed in confor- lity with the surrounding surfaces. 10. STRUCTURAL CHANGES - No structural changes shall be made to the premiss occupied by the buyer without the knowl- edge and written consent of the seller. ;AIDIS, GUIDO, SHUFF & MASLAND 2109 Market Street Camp Hill, PA 11. ASSIGNMENT OR SALE - This agreement may not be assigned by buyer without the prior written approval of seller, nor may the premises be sold by buyer by means of an-installment sales agreement or comparable document without the prior written approval of seller; provided that the premises purchased by buyer may be sold in accordance with the Tenants in Common Ownership Agreement. 12• WARRANTY AS TO CONDITION USE OR OCCUPANCY - The premises are being sold in "as is" condition and it is understood that buyer has inspected the property or hereby waives the right to do so, and that buyer has agreed to purchase the property as the result of buyer's inspection and not because of or in reliance on any representation made by the seller or seller's agent. Seller makes no warranty or representation as to the conformity of any future use or occupancy of the subject premises insofar as federal, state or local laws are concerned relative to zoning, building or other laws, ordinances or codes. In the event that buyer wishes to obtain approval of a change of use or occupancy, seller agrees to cooperate to any reasonable degree in such application or request, providing all costs associated therewith shall be borne by buyer. 13. CONDEMNATION - In the event of condemnation of the subject premises or any portion thereof by an agency, public authority or utility prior to theovayment of the within obligations from buyer to seller, the pPayment of all damages for the "taking" shall be divided between theebuyer and the seller "as their respective interests then may appear." 14. DEFAULT - Any failure of the buyer to make payment of any moneys required by this agreement within thirty (30) days after the due date for such payment, or any acts, or the perfor- mance of any act forbidden by this agreement, or the failure to perform any act required by this agreement, may constitute a default, at the option of seller. In the case of default by buyer, seller shall retain any and all moneys received under the provisions of this agreement (whether on account of purchase :Honey or otherwise) as compensation for buyer's use and occupancy of said premises. 15. CONFESSION OF JUDGMENT - In the event of default 3f payment of any sum of principal or interest herein agreed to >e paid for the space of thirty (30) days after the same shall become due and payable by the terms hereof, or the breach of any other of the terms of this agreement, the whole of said principal sum, at the option of seller, shall become due and payable forthwith, anything hereinbefore contained to the contrary notwithstanding. In such case of default, buyer hereby author- izes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere to appear for buyer and confess a judgment for the entire principal sum and interest remaining unpaid hereon, with 5% attorney's commission or fees, hereby waiving the right of exemption and inquisition, so far as the land herein described, and any property or building thereon may be concerned. Said seller, at seller's option, among other remedies available to seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recov- ery of said premises; in such case, buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere, to appear for buyer and confess judgment of ejectment, and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave or court) for the costs and 5% attorney's commission or fees, waiving all stay and exemption laws. Prior to the entry of judgment by confession or the filing of an action of ejectment, seller shall give to buyer written notice of default and seller's intention to proceed by legal action, which notice shall provide a period of thirty (30) days during which the buyer can correct the default. 16. RIGHT OP BUYER TO PAY LIENS - Camp Hill, PA - In addition to MIDIS, GUIDO, SHM & MASLAND 2109 Market Street mortgage to PennsylvianiaeState Bank, noticetof therentry tiof an mortgage, judgment, lien or other encumbrance affecting title to said premises received by the seller after the date of the execution of this agreement shall be given by the seller to the buyer within thirty (30) days of the recording thereof in the Cumberland County Court House. B. Delinquent Payments - In the event any mort- gage, judgment, lien or other encumbrance affecting title to the premises existing at the date of the execution of this agreement or hereafter entered of record and default in the payment is made by the seller, then buyer shall have the right to make the delinquent payments and to receive credit for the full amount of said payments made by the buyer and to deduct the amount thereof from the required monthly payments under this agreement. Prior to exercising the rights stated in this paragraph, buyer shall Give seller 48 hours notice by certified mail of his intent to do 3o, but this provision shall not limit buyer's right to make the ielinquent payments and to claim credit therefor. 17. APPLICABLE LAW - In the event of any disagreement or misunderstanding, the terms of this agreement shall be con- strued pursuant to the laws of the Commonwealth of Pennsylvania in effect at the time of the execution hereof and as they may be amended subsequently. 1AIDIS, GUIDO, SHUFF & MASLAND 2109 Market Street Camp Hill, PA 18. SELLER'S RIGHT TO SEVER BUYER'S INTEREST AS A UNIT OF A CONDOMINIUM STRUCTURE - Seller, at any time during the five year period of this agreement, may elect to file documents with the appropriate authorities to make the entire building and the curtilage described on Exhibit "A" as a condominium structure and to limit buyer's interest in the condominium to the third floor, an undefined one-third of the applicable parking area and an interest in the common elements of the building. 19. ENTIRE AGREEMENT - This document contains the entire agreement between buyer and seller; there are no represen- tations, warranties, covenants, terms or conditions, except as specifically set forth herein. 20. TIME OF THE ESSENCE - It is the agreement of the parties hereto that time shall be of the essence. 21. BINDING AGREEMENT - This agreement shall extend to and be legally binding upon the parties, their respective heirs, executors, administrators and assigns. 22. WAIVER - The failure of either party to insist upon strict enforcement of any provisions of this agreement shall not constitute a waiver of the right to enforcement of that provision or of any other provision. 23. DESCRIPTIVE HEADINGS - The descriptive headings used herein are for convenience only and they are not intended to indicate all of the matter in the sections which follow them. Accordingly, they have no effect whatsoever in determining the rights or obligations of the parties. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year,first above written. UTNESS : Art G., (SEAL) Hartman, J . ATTEST: HERSHEY-PHILBIN ASSOCIATES, INC. Secretar Presi ent (SEAL) SAIDIS, GUIDO, SNUFF & MASLAND 2109 Market Street Camp Hill, PA COMMONWEALTH OF PENNSYLVANIA) COUNTY OF SS. CUMBERLAND) Hershey-Philbin Associates, Inc. I hereby certify that on this °?`4 day of 1994, before me, a notary public in and for the above county and state, personally appeared ?j 7L the attorney named in the foregoing Indenture, and by virtue and in pursuance of the authority therein conferred upon him, acknowl- edged the said Indenture to be the act and deed of the said WITNESS my hand and notarial seal the day and year afore- said. otary Public SAIDIS, GUIDO, SHUFF & MASLAND 2109 Market street Camp Hill, PA THELMA S. MCC US SLLIN Nol t Camp Hill, Cumberland Coun y bllc MY Commission Expires July 3, 1996 EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. mIS, GUIDO, SEIM & AASLAND 09 Market Street Camp Hill, PA 13 EXHIBIT B NOTICE OF DEFAULT TO: Hershey-Philbin Associates, Inc. c/o Robert C. Saidis, Esquire 26 West High Street Carlisle, PA 17013 You are hereby notified that you are in default of the Installment Agreement of Sale between yourself and Robert G. Hartman, Jr., dated 24 October 1994. Pursuant to that Agreement you were to make regular monthly installment payments of principal and interest in the amount of $1,234.80. You have failed to do that in the following ways: A. The payments due for the month of November and December of 2007 and January of 2008 were not paid until 30 March 2008. Those payments were all at least sixty (60) days late. B. The payment made for February of 2008 was not made until April of 2008. C. The payment for the month of March of 2008 was not made until May of 2008. D. The payment due for the month of April of 2008 was not made until late August 2008. E. The payments due for the months of May, June, July, August, and September of 2008 have not been made. You are hereby notified that Janet Hartman, as the successor in interest to Robert G. Hartman, Jr., has elected to treat the above failures to make timely payments as a default of the agreement and that she hereby terminates the agreement,and your rights under it. Further, you are notified that she intends to pursue her legal remedies, as set out in Paragraph 15 of the Agreement thirty (30) days after the date of this Notice. Date: 19 September 2008 el L. es Attorney for Janet Hartman, Seller EXHIBIT C EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and-described as follows, to wit: MMM.. BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. DIS, GUIDO, CHUFF & iASLAND 9 Market Street :amp Hill, PA 13 "? t?1 ? C ? n {: ` '?'1 - ? r-,-. ?7 :-?i 1 ? ? ?? ?? T 1 ` ? ' ?T N ?'??? (,_' ,: _? trv..? ^ ? ?.,- :? Lf1 A ??- 111 CASE NO: 2008-07503 P SHERIFF'S RETURN - REGULAR COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND HARTMAN JANET W VS HERSHEY-PHILBIN ASSOCIATES INC CPL. TIMOTHY REITZ , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE & COMPLAINT - EJEC was served upon W P.qW V-PNTT,RTN AggnrTATF.q TNr the DEFENDANT , at 1611:00 HOURS, on the 8th day of January , 2009 at 2101 ORCHARD ROAD CAMP HILL, PA 17011 by handing to LINDA RHINEHART, VICE PRESIDENT a true and attested copy of NOTICE & COMPLAINT - EJEC together with CONFESSION OF JUDGMENT and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge Sworn and Subscibed to before me this of So Answers: 18.00 13 .50 .42 10.00 R. Thomas Kline .00 41.92 01/09/2009 SAMUEL ANDES By. day Dep ty She iff A. D. B! t... TT? rr JANET W. HARTMAN, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. CIVIL ACTION -LAW HERSHEY-PHILBIN ASSOCIATES, INC.,: : NO. 08-7503 Defendant : CIVIL TERM MOTION TO STRIKE AND/OR OPEN JUDGMENT OF EJECTMENT BY CONFESSION AND NOW, comes the Defendant, HERSHEY-PHILBIN ASSOCIATES, INC., by its attorney, R. Mark Thomas, Esquire, and files this Motion to Strike the Judgment, and/or Petitions this Court to Open the Judgment entered by confession, and in support thereof respectfully represents: 1. The Defendant is the buyer as identified in the Installment Agreement of Sale which is attached as Exhibit "A" to Plaintiffs Complaint for Confession of Judgment in Ejectment; however, there is an additional Tenants in Common Ownership Agreement (hereinafter referred to as the "Ownership Agreement") which was made a part of the Installment Agreement and was not attached to Plaintiff's Complaint. The Ownership Agreement is attached hereto as Defendant's Exhibit "A". 2. Plaintiff, JANET W. HARTMAN, is not a party to the Installment Agreement of Sale, and there is nothing of record to evidence that she has acquired the interest of Robert G. Hartman, Jr., in and to this Installment Agreement of Sale. 3. Paragraph 4 of Plaintiff's Complaint erroneously states that Robert G. Hartman, Jr., deceased, conveyed the "entire" property which is the subject of the Judgment of Confession to Plaintiff, but the deed only transfers a "2/3 Tenants in Common Interest" in the property. A copy of the recorded deed dated September 19, 1996, is attached hereto and incorporated herein as Defendant's Exhibit "B". 4. There is nothing of record to evidence a transfer or assignment of Robert G. Hartman, Jr.'s, interest in the Agreement dated October 24, 1994, to Plaintiff. 5. On July 7, 2000, an Extension Agreement was executed by and between Robert G. Hartman, Jr., and the Defendant to extend the payment terms of the October 24, 1994, Agreement. A copy of that Extension Agreement is attached hereto and incorporated herein as Defendant's Exhibit "C". 6. Plaintiff is not identified as a party to the Extension Agreement, nor does the Extension Agreement mention that Plaintiff has acquired an interest in the Agreement, or the One-Third (1 /3) interest in the property being purchased by Defendant. 7. According to the record that now exists, Plaintiff has never had an ownership interest in the property which Defendant is purchasing pursuant to the Installment Agreement of Sale dated October 24, 1994, nor has Plaintiff ever been a party to the Installment Agreement of Sale, or its extension. Under these circumstances, Plaintiff is not entitled to a Confession of Judgment of Ejectment which would give Plaintiff title to property in which she, in effect, has no interest of record. 9. According to Plaintiffs Complaint, Defendant has paid One Hundred Seventy- Seven Thousand Eight Hundred Eleven Dollars and Twenty Cents ($177,811.20) to acquire title to an undivided One Third (1/3) interest in the property from which Plaintiff now seeks to have it ejected. 10. Furthermore, as will be made clear in the following Petition/Motion to Open Judgment, Defendant has a meritorious defense to any alleged default under the Installment Agreement for Sale. WHEREFORE, Defendant, HERSHEY-PHILBIN ASSOCIATES, INC., prays that this Honorable Court will strike the Judgment in Ejectment which was entered by Confession. PETITION TO OPEN JUDGMENT 11. Paragraphs 1 through 10 are incorporated herein as if they were set forth at length. 12. Defendant is not in default of the Installment Agreement for Sale. 13. In addition to payments totaling One Hundred Seventy-Seven Thousand Eight Hundred Eleven Dollars and Twenty Cents ($177,811.20), Defendant has invested more than One Hundred Thousand Dollars ($100,000.00) in improvements to the third floor of the building which, pursuant to the Ownership Agreement, was to be the exclusive possession of Defendant. 14. In March 2008, Orrstown Bank issued a loan commitment to the shareholders of Defendant in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00), part of which was to be used to pay off the Installment Agreement of Sale and allow Defendant to take title to an undivided One Third (1/3) interest in the property at 2101 Orchard Road, Camp Hill, Pennsylvania property 15. Plaintiff was unable to deliver legal title which was good, marketable and insurable at regular rates due to the following reasons: a. On April 10, 2000, Lower Allen Township approved a Plan submitted to the Township by Plaintiff and Robert G. Hartman, Jr., to combine the 2101 Orchard Road property with an adjacent tract of land into one (1) lot, and thereby changed the boundaries of the property which had been the subject matter of the Installment Agreement of Sale; b. It is believed and therefore averred that the combined Lot No. 1 cannot be re-subdivided, so as to give Defendant a One Third (1/3) interest in the property which was the subject matter of the Agreement; and C. Plaintiff could not issue a deed to Defendant in conformity with the Installment Agreement. 16. Due to the issues concerning the change brought about by the combination of the two (2) lots into one (1) lot, as well as the failure of Robert G. Hartman, Jr., to convert the third floor of the building to a condominium, Defendant was unable to acquire its' One Third (1/3) interest as provided in the Agreement, nor was it able to acquire title to the third floor as a condominium unit. 17. Subsequently, and for the reasons cited above, Orrstown Bank withdrew its commitment to lend money to the Defendant. 18. There are additional reasons growing out of the Ownership Agreement which have caused Defendant to justifiably withhold future monthly installment payments. 19. The Ownership Agreement requires Defendant to pay One Third (1/3) of all common expenses necessary for the maintenance, repair and operation of the property, namely the single tract which was the subject matter of the Agreement, as well as its One Third (1/3) share of property taxes. 20. Since at least April 28, 2000, and possibly since 1994, Defendant has unknowingly paid One Third (1/3) of the common expenses, plus One Third (1/3) of the property taxes on the combined lots, one tract of which was not part of the Installment Agreement, nor a part of the Ownership Agreement. 21. Pursuant to the Ownership Agreement, Robert G. Hartman, Jr., at his sole expense, was to have a new roof installed on the main building. 22. It is believed and averred that Robert G. Hartman, Jr., did not have a new roof installed, nor did anyone else install a new roof until May 2005. 23. Defendant has suffered damages due to water leaks in the roof and Plaintiff has now billed Defendant Eleven Thousand Sixty-Eight Dollars and Fifty-Five Cents ($11,068.55) as its' share of the cost for a new roof which the Agreement required Robert G. Hartman, Jr., to install at his sole expense. 24. Pursuant to Paragraphs 3 and 13 of the Ownership Agreement, any repair or maintenance of property to exceed One Thousand Dollars ($1,000.00) is to be voted on by the parties and subject to competitive bids. 25. The installment of the new roof in 2005 costs Thirty-Three Thousand Two Hundred Eight Dollars and Ninety-Six Cents ($33,208.96), but the Defendant was not consulted nor given the opportunity to vote on this expenditure. 26. In March 2003, a substantial storage building was erected on the property for the sole benefit of Robert G. Hartman, Jr., which increased the property value and increased Defendant's tax and cost of liability insurance on the property without the consent of Defendant. 27. Defendant has acted promptly in the filing of this Petition to Open Judgment, has alleged a meritorious defense to the judgment, and has presented sufficient evidence to warrant a hearing on the issue of whether Defendant is in default. 28. The only protection available to Defendant pending a hearing on the merits of Plaintiff's Confession of Judgment in Ejectment is for this court to order that enforcement of the judgment be stayed until such time as a hearing is held in this matter. WHEREFORE, Defendant, HERSHEY-PHILBIN ASSOCIATES, INC., prays this Honorable Court will issue a Rule upon Plaintiff to show why this Petition to Open Judgment should not be granted and hereby requests a stay of any further proceedings, including enforcement of the Judgment in Ejectment, until such time as a hearing has been held. Respectfully submitted, ;_ e,;; ? ra4 4, t ?, ?- R. Mark Thomas, Esquire, Attorney No. 41301 101 South Market Street Mechanicsburg, PA 17055 Telephone: 717-796-2100 VERIFICATION I verify that the statements made in the foregoing document are hue and correct to the best of my knowledge, information and belief I understand that false statements herein are made subject to the penalties ofl 8 Pa. C. S. §4904, relating to unswom falsification to authorities. Date: VERIFICATION I verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief I understand that false statements herein are made subject to the penalties ofl 8 Pa. C. S. §4904, relating to unswom falsification to authorities. Date: 1-2 -011 Elt bir ',A *V ?O3d? SAIDIS, GUIDO, SHUFF & MASIAND 2109 No" Sued cmP H01. PA v TENANTS IN COMMON OWNERSHIP AGREEMENT AGREEMENT executed this a y ? day of 6 1 1994 between ROBERT G. HARTMAN, JR. and HERSHEY-PRILDIN ASSOCIATES, IMc., hereinafter collectively referred to as "owners," WITNESSETH: 1. Business and Interest - The parties hereto have entered into an Installment Sales Agreement simultaneously with the execution of this agreement in relation to the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, as more particularly described on Exhibit "A" to said Installment Sales Agreement. The interest of the owners in the property, subject to other provisions of this Agreement, shall be as follows: Robert G. Hartman, Jr. - undivided two-thirds Hershey-Philbin Associates, Inc. - undivided one-third 2. Exclusive Use - Robert G. Hartman, Jr. shall have the right to an exclusive use of the first two floors of the premises and Hershey-Philbin Associates, Inc. shall have the exclusive, use of the third floor of the premises. Each owner, upon reasonable notice, may inspect the premises of any other owner during regular business hours for any legitimate purpose expressly or impliedly created under this ownership Agreement or by virtue of his ownership rights in the property. Each owner shall have the right of emergency access, without notice, to the suite of every Bom 485 PACE 657 . i SAIDIS, GUHO, SHUFF & MAM AND 2109 Mukq Suau Cuy MR. PA other owner in the event of threatened peril to the suite or to the entire property or to any portion of the property accessible through the suite. Emergency access shall not be utilized by any owner unreasonably, but the threat of any peril covered by the property insurance policy to be obtained on the property or of any crime shall be sufficient grounds for such emergency access. 3. Maintenance. Repairs and Capital Expenses - Each owner shall contribute his pro rata share, based on his ownership interest, of any common expenses necessary for the maintenance, repair and operation of the property, including but not limited to common accounting and legal fees, utilities (other than those separately metered), trash removal, landscaping, gardening, real estate taxes, assessments, insurance (exclusive of contents and trade fixtures), exterior maintenance, exterior walls mainte- nance, exterior painting, roofing, parking lots and paving. Payments shall be made to the manager, no later than the due date) as specified in any request for payment, or, if none is speci- fied, then no less than three business days before the manager is required to make payment of any such expense to a creditor; provided, however, that each owner shall be responsible for interior maintenance of and janitorial service for his floor or floors. Unless the parties agree to new financing, the responsi-I 2 BOOK 485 PACE G58 SAIDIS, GUIDO, Snu" k MASLAND 21W Ma&d SWd c.w MI. PA bility for the payment of the existing mortgage shall be with Robert G. Hartman, Jr. Hartman shall provide proof of monthly payment of said mortgage to Hershey-Philbi5e Associates, Inc. Any expense for the repair or maintenance of the property which is reasonably anticipated to exceed $1,000 shall, upon the request of any owner, be awarded after receiving compet- itive bids.. It is understood and agreed that Hartman contemplates putting a new roof on the premises prior to the end of 1995 and that expense shall be borne solely by Hartman. Twenty parking spaces shall be allocated to Hershey-Philbin Associates; if additional parking spaces are required by the township for the first two floors, the cost of installation shall be borne solely by Hartman. 4. Restrictions on Use - The property shall be used for business or professional offices only and shall be in conformity with the Lower Allen Township Zoning Code. Any expense incurred in obtaining approval from the township or Commonwealth of Pennsylvania for use or approvals relating only to the area occupied by the respective owners shall be borne solely by the applicable owner. 5. Manager - Robert G. Hartman, Jr. shall be manager of the property and shall have the following responsibilities: I , 3 BOOK 485 PACE 659 A. To receive and deposit checks and other remittances for the benefit of owners; B. To make payment of all expenses necessary or incidental to the maintenance, repair and operation of the property; C. To make application for any permits or approvals necessary for operation and management of the property. D. To maintain books and records of the operation of the property, including accurate records of receipts and dis- bursements; E. To notify owners of the necessity for advancing funds; and SAIDIS, GUMO, SNUFF k MASLAND 2109 Merkel Area Cmp 11111. PA F. To secure contractors for and to supervise grass and lawn care, snow removal, painting and other maintenance and repair responsibilities which the owners are obligated to share. 6. Banking - All funds of the owners, with the exception of the Installment Sales Agreement payments, shall be deposited in a separate checking account or accounts as designated by Robert G. Hartman, Jr. and withdrawals therefrom may be made upon checks signed by him or his designee. 1 7. Books - Books of account shall be maintained at the office of the manager, provided that each owner or his duly authorized attorneys or accountants shall at all times have access thereto. The books shall be closed and balanced at the end of each such calendar year. If requested by any owner, a certified audit shall be made As of the end of each taxable year, and the expense of any such audit shall be shared pro rata among the owners. 4 BOOK 485 PACE 660 S. Voluntary sale - The property may be sold at any time by agreement of all owners, in which event, they shall proceed with reasonable promptness to sell all personal and real property owned in common by the parties and relating to the property in question. The proceeds from any such sale shall be used and dis- tributed to pay or provide for the payment of all liabilities and liquidating expenses and obligations with respect to the acquisi- tion, operation, maintenance and sale of the property, and thereafter, any excess shall be distributed pro rata in accor- dance with ownership interests. The existing mortgage of Robert G. Hartman, Jr. to the Pennsylvania State Bank shall be the sole responsibility of Hartman and not of the tenancy in common. 9. Default - The failure by any owner to make any payment due hereunder, as the same shall become due, following written notice, but within the time provided hereunder, shall automati- cally constitute a default. The failure of any owner to perform any other obligation of such owner hereunder, within a period of 30 days after written notice, shall also constitute a default. In the event of failure to make a payment, the defaulting owner shall have a reasonable time, not exceeding 30 days from the due SAIDIS,GUIDU, date, within which to make the payment, but shall also pay to the SIW" k MASLAND non-defaulting owner, a sum equal to 158 of the payment in zlosM? GmP H Hill111,, PA default or $100, whichever is greater, together with reasonable attorney's fees and costs actually incurred in order to cure such default. 5 BOOK 485 PAGE 661 10. Remedies - In the event of default and failure to cure, SAMIS, GUIDO. SDUFF & MASLAND 2109 MA&d Slurp Camp Hm. PA as provided herein, or in the event any owner should commit three events of default within any two year period, regardless of whether the three events of default are actually cured, the remaining owner shall have the option to exercise the following remedies: A. To purchase the interest of the defaulting owner at a price equal to 90% of the value of the defaulting owner's ownership interest, said value to be determined by an MAI appraisal of the real property and an appraisal of any personal property, less such owner's pro rata share of all liabilities (apportioned pro rata to the settlement date) of the owners with respect to the property, settlement to occur within 30 days from receipt of the last required appraisal. In the event this remedy is elected, the remaining owners shall be entitled to purchase the share of the defaulting owner pro rata in accordance with the ownership interest of all owners desiring to acquire the owner- ship interest of the defaulting owner. The MAI appraiser and any other appraisers required for assets hereunder shall be selected by the bank in which the owners' checking account is maintained or, if no checking account is maintained, by the bank holding a mortgage on the premises. The cost of any appraisals or other fees to be paid, pursuant to this provision, shall be paid by the defaulting owner, including reasonable attorney's fees and costs, except that realty transfer tax, if any, shall be divided equally between the defaulting owner and the purchasing owner; B. To specific performance of this Agreement; C. To reasonable attorney's fees actually incurred by the non-defaulting owner and court costs; and equity. D. To any other remedies available at law or in 11. Restriction on Sale - Neither the ownership interest of any owner nor any portion thereof, or interest therein, shall be 6 BOOK 485 PAGE G62 sold, assigned, given, transferred, passed by inheritance or devise, or otherwise disposed of except in accordance with the following provisions of this Agreement. Any disposition of an ownership interest contrary to the provisions hereof shall be void. A. gpt?on o Yurchase_ - Hartman shall have the right to transfer his interest to his widow, his children or to Robert G. Hartman & Associates, Inc., and Hershey-Philbin Associates, Inc. shall have the right to transfer its interest to Robert J. Philbin, Scott W. Hershey, their respective spouses and children, but in the event that any owner desires to sell, assign, transfer or make any disposition of ownership, other than as indicated, then he or their personal representative shall first attempt to negotiate a sale with the other owner; if such a sale is not negotiated, then he or his personal representative shall give at least 15 days' notice in writing by registered or certified mail to the other owner setting forth the interest that he desires to sell or dispose of and the material terms of the proposed sale. The other owner shall be entitled to purchase the interest beingg offered upon the terms set forth in the notice, said option to be exercised, if at all, within 30 days. B. C1os na - If the other owner elects to purchase the ownership interest offered, a closing shall be held at the offices of Saidis, Guido, Shuff & Masland, or at such other place as the parties shall agree on the 60th business day after the option to purchase is exercised. The purchase price and method of payment shall be set forth in the notice of intention to sell. C. Sale to Third Parties - If the other owner does not elect to purchase the ownership interest offered for sale, then', the offering owner shall be authorized to sell the interest offered for sale to any party, provided that any such sale to a, SAIDIS,GUmo, third party must be upon the same material terms and conditions'. SHUFF& as previously offered to the other owner pursuant to this Agreer MASLAND went. If the interest is not sold within a year of notification 2109MarkdSUmi to the nonselling owner, his option to sell to third parties under be this subject Agreement. purchesle GmPHi11.PA shall expire granted and a the f other owner will option 7 I ttioolc 485 encE 663 .f--- 12. Insurance - In addition to the liability and fire insurance obtained by the manager for the entire property, each owner shall procure adequate liability and fire insurance to protect persons and the property in the suites which they occupy or own. SAIDIS, GUIDO, SNUFF & MASLAND 2109 JAI" Shoo Cwp Hill, PA 13. Voting - In the determination of matters which would require the consent of both owners, or all owners in the event that other parties become the owner or owners of interests in the premises, voting shall be in accordance with the pro rate inter- est which the parties own in the premises; i.e. at the present time Robert G. Hartman, Jr. shall have two votes and Hershey- Philbin Associates shall have one vote. Voting matters shall include but not be limited to matters involving ownership of the units, insolvency, bankruptcy, receivership, alterations, repairs and all other decision-making rights hereunder. 14. Subleasing; Sale of Adjacent Lot - Either party shall have the right to lease or sublet the premises or any part thereof without the consent of the other party; provided, that the lease or sublease of the property shall not relieve either party of the obligations incurred herein. Nothing herein shall be construed as preventing Hartman from selling, without first offering to the other owner or owners, a separate tract of ground 8 DOOK 485 PACE 664 appurtenant to the premises described on Exhibit "A" but which has been intentionally excluded from the installment Sales Agreement into which this Agreement is incorporated. SAIDIS, GUIDO, SHUFF & MAST AND zips Mirka SIMW Case lim, PA 15. Interpretation - This Agreement shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania. Paragraph headings are for convenience only. 16. Benefit - This Agreement shall be binding upon and shall operate for the benefit of the parties and their respective heirs, successors, assigns and legal representatives. This Agreement shall also be binding upon any transferee who has received any ownership interest in accordance with the provisions of Paragraph 11 hereof and the heirs, successors, assigns and legal representatives of such transferee, and upon any person to whom any of the shares are transferred in violation of the provisions of this Agreement and his heirs, successors, assigns or legal representatives. 17. Copies/Recording - A copy of this Agreement, any amendments, modifications and addenda thereto shall be kept at the principal office of the manager for inspection by owners and prospective purchasers of the interests of the owners upon written request of any owner. The Agreement may also be recorded by any party hereto in the Cumberland County Recorder of Deeds Office. i 9 - 11 BOOx 485 PACE 665 is. Time of the Essence - Time shall be of the essence to all terms and conditions of this Agreement. sAms. GUIDO, SHUFF k MASLAND 2109 Mullet seed camp liul. PA 19. Subordination - This Agreement is subordinate to a certain mortgage of Robert G. Hartman, Jr., et ux, to The Penn- sylvania State Hank dated April 21, 1994 in the principal amount of $238,400. 20. Notice - All notices hereunder shall be in writing. Any required notice shall be deemed given when deposited in the United States Mail, postage prepaid, certified, return receipt requested, or when delivered to the business office of a party with a written receipt from the person in charge being obtained. 21. Entire Agreement - This Agreement incorporates all understandings of the parties with respect to its subject matter, and there are no representations, understandings or agreements not incorporated herein. IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have set their hands and seals on the day and year first above written. WITNESS: (SEAL) Robert G.-Hartman , Jr. 10 BOOK 483 PACE 666 SAIDIS, GUIDO, SNUFF do NIASLAND 2109 Mm" Slmu Cu" MU, PA ATTEST: H RSHE2-PHILBIN ASSOCIATES, INC. By: President Secretar 11 Borne 485 ME 697 EXHIBIT "A" SAMIS. GU MO. SHUFF & MASLAND 2100 Mrta suw CMP 11M. PA ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. .'• ;• onnsylvanie 5S of Cuinberlsnd +. in tha office for the recording of Dcc:'n ti ..rl for Cumberlend County/,P`e., Gook Vol. =Page tlf AGO n " n _ , my hand and seal of office f ..:.la, PAJtI o? of c ? ?`, -•. ± r' Recorder it G.'N t :i?.l r' x t• rf 7 '. . .• •. t tlt%%% LANE' 13 eoox 48.5 PAcE GA DdrfeAdgoit's Exhibit a8~ EXTENSION AGR_EEMk:N'!. TINS AGREEWNT made this _ r1-rr oF_CJ ' and between Robert G. Hartman, Jr., Cumberiand County, Pennsylvania (hereinafter by referred to as "Seller"), and; Hershey -Philbin Associates, Inc_ now of Cumberland ('oanty, pennsylvarua (hereinafter referred to as "Buyer,), WIiTNESSETH: 'MEREAS, Seller and Buyer erntered into two separate agreements on October 24, 1994, known as "Installment Agreement of Sale" au(, "Tr_nants Tn Common Ownership Agreement"; and WHEREAS, the said agreements provided for the < nsier of a one-third interest in the premises known and numbered as 2.10I Orcivi rd ROTI, Camp fill[, Pennsylvania; and WHEREAS, said agreements provided for the payn-•? ?r rln.- +r 1I purchase T rice on or before October 24, 1999; and WHEREAS, the parties want to extend the agreem::ns_s ",,.t;-I ;,erain tarrns and conditions. WITNESSETH, in consideration of the mutnr.1 :and of reetr_ents hereinafter contained, Seller and Buyer agree as follows: 1. The Tenant, in Common Ownership ee:r:ent executed by tl?ie parties hereto, under date of October 4, r 9Q., i :cainue in full force and effect. 2- The Installment AV-eement of Sale datc.1 Gctobcr 24, 1994 is extended until December 31, 2004 with the follo?: ing r ndifications: a. Seller shall have the right to sever Buyer`s interest as a unit of a condominium structure pursuant to paragraph 18 of the Agreement at any tune during the terrnt of this extension provided that he provides Buyer with at least 90 days notice to pay off the balance of the purchase price. b. Seller shall, have the right to sub-divide.: a tract of ground described on Exhibit "A", attached hereto, from the tract which is the subject of this Agreerrient. M - - HO ,13:23 0 ? I ?i OWN BANK 5 f ONEHEOI,? !Lp%?T17 ?J9 Oql?C, P ?O3i70R c. . The parties acknowledge that the balance due under the terms of the Installment Agreement of Sale as of this date is $ 9Q,85x.4k and that the payments pursuant to this extension shall continue to be in the amount of$1,234.SQ.. 3. Buyer has expressed an interest in the possibility of expanding the third floor of the building by the construction of an addition :o the building's south side. Seller agrees to ccriside::=h a proposal when it is presented but reserves the right to impose, inter alia, the following conditions: a. the addition shall be at the sole cost of the buyer. b. Seller may require the severance of buyers interest as a condominium unit prior to th;- constrmctioc.. c. The addition; shall not threaten tht. integuity of the remaining building or interfere with Seil?•-'ti Li!:(,- of the building. d. Mairitenance costs, insurance, Laxes and repairs for the addition shall be the responsibility of the buyer. IN WITNESS WIFEI2EOF, the parties hereto have ,er rht.ir hands and seals on the day and year first above written. ATTEST: Secre ?' oberr G. Hartman, Jr. _ ffFRSHEY-P Bl`N ASSOCIATES, INC_ President r'n D& -fast 9(4*4t Lrxb,lpit ' G ~ i 3V mat ? -~, yc?3-?3-oSK9 •l? ROa_ERT P. 71EGLER RCCORDER Of DEEDS l;UMSERLAND COUNTI-PA THIS DEED. z7 ?' 3 zi fl- Made the / Cr day of BETWEEN ROBERT G. HARTMAN, JR., of New Cumberland. Cumberland County, Pennsylvania, herein designated as the Creator(s), AND JANET w. HARTMAN, of New Cumberland, Cumberland County, Pennsylvania, herein designated as the Graates(s): WITNESSETH, that the Grantors, for and in conWeradon of -------ONE 151.001 DOLLAR ------- ------------- lawfid money of the United States of America, to the Grantors in hand well and truly paid by the Grantees, at or before the sealing and delivery of these present& the receipt whereof is hereby acknowledged and the Grantors being therewith 14UY sa ISAId do by them presents grant, bargain. sell and convey into the Grantees forever. TRACT NO, 1: ALL T.7AT CERTAIN 2/3 TENANTS IN COMMON INTEREST in that tract or parcel of land and premises, situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by Tract No. 2 hereinafter described, South 05 degrees 17 minutes most, 210.64 feat to an iron pin; thence by lands now or formerly of Garver. South 83 degrees 16 minutes West, 200.00 feet to an iron pint thence, still by other lands now or formerly of Garver, North 15 degrees 52 minutes Hest, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, North, 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a building known as `Park Place, Office Building and known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. THIS TRANSFER IS WHOLLY MMIPT FROM PEMSYLVANIA REALTY TRANSFER TAX Y PURSUANT TO 51102-C.3(63 PENNSYLVANIA. REALTY TRANSFER TAY ACT AND REGULATIONS TRANSFER 13ETWE N HUSBAND AND WIFE t 146 4ZZ 684 001 Grantor sold a one-third f1/3T tenants in common interest, under installment Sale Agreement-dated October 24, 1994, to Hershey-Philbin Associates, Inc. in which it provided that Hershey-Philbin would have the exclusive use of the third floor of the foregoing premises. TRACT NO. 2: ALL THAT CERTAIN tract of land situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point in the center line of the township road known as orchard Road at the easterly line of Tract No. 1, hersinbefore dsscribed; thence by said center line. North 84 degrees 39 minutes East, 30.11 feet to by the minutes Highway East, 10.30 feet 21022; thence point in the . South center 37 degrees 36 the- State to a point in latter line said center line; thence still along said center line, North aS degrees 02 Ray by 6 the feet to a oint on line of lands now or formly South 24 degrees 06 minutes East, 141.16ffeet minutes hEast, ence B9.61 to a stake; thence by lands now or formerly of West Shore Driving Range, South 24 degrees 06 minutes East, 66.94 feet to a stake; thence by the same, South 83 degrees 21 minutes West, 229.33 feet to a stake at the easterly line of Tract No. 1, aforesaid; thence by the latter, North 05 degrees 17 minutes East, 210.64 feet to the place of BEGniffiNG. . BEING the same premises which. Dauphin Deposit Bank and Trust Company. by its deed dated April 19, 1994 and recorded in the office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 104, Page 361, granted and conveyed unto Robert G. Hartman, Jr., Grantor herein. TOGETHER with all and singular the b+didings, improvements. ways waods, water; waterrourm rights, liberties, privileges, herediwmems and appurtenances to the same belonging or in anywise appertaining: mid the reversion and reversions, remainder and remaindem ratu, issues and profiu thwoof, and of ever} parr and parcel rherwf,• AND also all de estate. right, title, interest, use possession, property: claim and demand whauoever of de Granwrr both in law and in equity. of in and to the premises herein described and everp part and panel thereof with the appurimwnces TO HAVE AND TO HOLD all mid singular the premises herein described wgether with the hereditaments and appurtenances imto the Grantees and to Gra tees' proper use and benefli forever. aoai 146 PAGE 685 AND the Gnotam for themselves, their heirs, executors and administrators, do covenant, promise and agree, to and with die said Grantee heirs and assigns, by these presents, that the said Gem tor(jA heirs, all and singular the heredit4ments and pnmiset hereby granted or asendased and intended so to be with the appsomwe; nmto the said Grantee, heirs and arsigns, against than the said Grantor(s) and their heirs, and against all and every person and persons whomsoever /a*fuUy claiming or to claim the same or any part thereof, by, from or under hbrt, her, than or any of Hon, shall and will, SUBJECT at aforesaid FOREVER SPECIALLY WARRANT AND DEFEND. In all references herein to any parties, persons, entides or corporations, the use of any particular gender or the plural or singular number is inanded to lachtde the appropriate gender or number as the test of the within insmonent may reipdre. Wherever in this inatrument any party shall be designated or referred to by name or general reference, such designation is intended to and shall have the same effect as (f the words heirs, executors, administrators, personal or legal repnsentadves, successors and assigns" had been inserted after each and every stuh designation. IN W17NESS WHEREOF, the Grantors have hereunto of their hands and seals. or if a corporation, it has caned these presents to be signed by its proper corporate officers and its corporate seal to be af)'tud hereto, the day and year first above written. SIGNED, SEALED and DELIVERED in the presence of or ATTESTED by- .d ..,, ,dthG ' e? Robert G. Hartman, Jr. 017 COMMONWEALTH OF PENNSYLVANIA, COUNTTY?OF C tirnbeH* d -. 95 BE IT REMEMBERED, that on 1 nbe,,? i?9Jp before me the subscriber personally appeared Rom= G. HmTNAN, JR., known to me (or satisfactorily proven) to be tine person whose name is subscribed to within deed and acknowledged that he wonted the same for the purpose therein contained. WITNESS my hand and seal the day and year aforesaid ( Ld rL.? L y d C . w-, 1 l oTARY PUBLIC M), rrs? MMNOIaw?e1, s r Loww Ai km Twp., C wnbwtww Cpft y t My Cw-gspbn ExOm Om S. Mil +7 e? a trsVe.Prr r+a.?oerondNAidu N't 146 PACE 07/14/2008 3:22:33 PM CUMBERLAND COUNTY Inst.# 199627971 - Page 3 of 4 C0j%VONWEALTH OF PENNSYLVANIA, COUNTY OF : $s. BE IT REMEMBERED, that on 19 , before me the subscriber personally appeared who acizoA*ed self to be the of , a Cotporotion, and that being aathork d to do so as such corporate officer executed the foregoing instrument for the purposes therela contained on behalf of the corporsdo 1. WITNESS my hand and seal the day and year aforesaid NOTARY PUBLIC My Commission Expires: (SEAL) .9. LQ O o ? h A ? ?gho..a x c? C8Q :e of retnspinnie Ss mty of Cumberland of Deeds dln 0 riled in the office for ON reca v c d forj? and Coungr jig Pe s *?• y f: $ ? E O g Voi.- ook b1KCe my fiend inQiqi Of F!4 this C y + O AilC L "Sad Fw- 146 PACE 687 '07/14/2008 3:22:33 PM CUMBERLAND COUNTY Inst.# 199627971 - Page 4 of 4 CERTIFICATE OF SERVICE I, R. Mark Thomas, Esquire, hereby certify that I have served a true and correct copy of the within document on the following person by depositing a true and correct copy of the same in the U.S. Mail at Mechanicsburg, Pennsylvania, First Class Postage pre-paid, addressed to: Samuel L. Andes, Esquire P. O. Box 168 Lemoyne, PA 17043 Date: February 6, 2009 R. Mark Thomas, Esq. C`) 7 c F7 K rv 71 Y FEB 0 4 2CkAj 9 Is JANET W. HARTMAN, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. CIVIL ACTION -LAW HERSHEY-PHILBIN ASSOCIATES, INC.,: : NO. 08-7503 Defendant : CIVIL TERM RULE AND NOW, this 1 1'?hday of February, 2009, upon consideration of the foregoing Motion to Strike and/or Open the Judgment of Confession previously filed inlthis case, a Rule is issued on the above Plaintiff to show cause why the judgment entered in the above case should not be stricken or opened. tti Rule returnable the C day of M*.r?? , 2009. Pending a',hearing on this matter all proceedings are hereby stayed. By the Court, J. cc: Samuel L. Andes, Esquire, P. O. Box 168, Lemoyne, PA 170143 Counsel for Plaintiff R. Mark Thomas, 101 South Market Street, Mechanicsburg, PIA 17055 Counsel for Defendant 8?: I I Nil z 1 833 66OZ Ott viow??. ujd 3?u jo KL-Plo-cm SHERIFF'S RETURN - REGULAR CASE NO: 2008-07503 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND HARTMAN JANET W VS HERSHEY-PHILBIN ASSOCIATES INC KENNETH E GOSSERT Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - EJECTMENT was served upon HERSHEY-PHILBIN ASSOCIATES INC the DEFENDANT , at 0015:00 HOURS, on the 10th day of February-, 2009 at 2101 ORCHARD ROAD CAMP HILL, PA 17011 by handing to LINDA RHINEHART VICE PRESIDENT a true and attested copy of COMPLAINT - EJECTMENT together with NOTICE OF JUDGEMENT & EXECUTION, RULE 2973.2 and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 12.60 Affidavit . 00 Surcharge 10.00 R. Thomas Kline Postage .42 41.02 02/11/2009 SAMUEL L ANDES Sworn and Subscibed to before me this By: day of A. D. f7 ?' ?. s t?~ ? ? ? ? t...,. _ ?? ? ? JANET W. HARTMAN, Plaintiff vs. HERSHEY-PHILBIN ASSOCIATES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 08-7503 Civil Term PLAINTIFF'S ANSWER TO DEFENDANT'S MOTION TO STRIKE AND/OR OPEN JUDGMENT OF EJECTMENT BY CONFESSION AND NOW comes the above-named Plaintiff, by her attorney, and makes the following Answer to Defendant's Motion to Strike and/or Open Judgment of Ejectment by Confession: 1. Admitted in part and denied in part. It is admitted that Plaintiff's predecessor-in- interest, Robert G. Hartman, Jr. (hereinafter referred to as "Robert") and Defendant entered into a "Tenants in Common Ownership Agreement" and that a copy of that Agreement is attached as Exhibit A to Defendant's Motion. It is denied, however, that the said Agreement was made part of or incorporated into the Installment Sales Agreement on which Plaintiff has now confessed judgment. To the contrary, each of those agreements was intended to, and in fact does, operate separately from the other and each of them contains a clause providing as much. 2. Admitted in part and denied in part. It is admitted that Plaintiff was not a party to the Installment Sales Agreement which is the basis of this action. However, it is denied that she is not now the owner of the property and averred, to the contrary, that she acquired the remaining one third interest in the property by an Executor's Deed dated 6 July 2009, a copy of which is attached hereto and marked as EXHIBIT D. B y way of further answer, Plaintiff states that, by an Assignment of Installment Agreement of Sale, also dated 6 July 2009, Plaintiff acquired the interest of Robert in the Installment Agreement of Sale between Robert and Defendant. A copy of that Assignment is attached hereto and marked as EXHIBIT E. Both the Executor's Deed (EXHIBIT D) and the Assignment (EXHIBIT E) were recorded in the Recorder of Deeds Office in and for Cumberland County on 8 July 2009. 3. Plaintiff admits that there was a misstatement in her original petition but states that the record has now been corrected by her obtaining title to the remaining one third interest in the real estate involved in this matter and the assignment to her of Robert's interest in the Installment Agreement of Sale. 4. Denied. Please see EXHIBIT E attached hereto and the averments set forth in Paragraph 2 and 3 above. 5. Admitted. 6. Admitted. By way of further answer, Plaintiff states that there was no reason for her to be identified as a party to the Extension Agreement wherefore such Extension Agreement to indicate that she had acquired an interest in the property because the Installment Agreement of Sale had not then been assigned to Plaintiff and she did not, at that time, owned the one third interest retained by Robert to convey to Defendant if and when Defendant successfully completed its obligations under the Installment Agreement of Sale. 7. Denied for the reasons set forth in the foregoing paragraphs of this Answer. By way of further answer, Plaintiff states that she was the co-executrix of the Estate of Robert and a beneficiary of his Will as a result of which she was charged with the responsibility to enforce the agreement and also was the party at interest in the enforcement of the Installment Agreement for Sale. 8. Denied for the reasons set forth in the foregoing paragraphs of this answer. 9. It is admitted that Defendant paid installments which total more than $175,000.00. It is also stated, however, that Defendant has made no payment whatsoever on the agreement for more than one year and that, as a result of such default by Defendant, Plaintiff is entitled to recover possession and ownership of the land in the action she has filed. 10. Denied. Plaintiff incorporates herein by reference, the averments set out in the remaining portions of this answer. WHEREFORE, Plaintiff prays this court to deny Defendant's Motion to Strike Plaintiff's Judgment. PETITION TO OPEN JUDGMENT 11. The averments set forth in Paragraphs 1 through 10 of Plaintiff's Answer, as set out above, are incorporated herein by reference. 12. Denied. Defendant has failed to make various payments due and owing to Plaintiff under the terms of the Installment Agreement of Sale, all are set forth in Plaintiff's Complaint. Further, Defendant has made no payments on the Agreement, and Defendant's obligations created by that Agreement, since Plaintiff s Complaint was filed in 2008. Plaintiff incorporates herein, by reference, the averments set out in her Complaint. 13. Denied. Plaintiff is without knowledge or information which is sufficient to determine the truth and accuracy of the averments in this Paragraph because that information is within the exclusive control of Defendant, and so Plaintiff denies those averments. By way of further answer, Plaintiff states that the monies spent by Defendant to make improvements to the property are not relevant to this action in which Plaintiff seeks to enforce its clear right under the Installment Agreement of Sale. 14. Denied as stated. Plaintiff states that the loan commitment issued by Orrstown Bank was conditioned upon Defendant being able to secure the loan with a mortgage against a condominium interest in the subject property. Defendant did not own, and has never owned, a condominium interest in the property and, therefore, Defendant could not meet the conditions of the loan commitment. 15. Plaintiff denies that Plaintiff could not deliver legal title. Specifically: a. Plaintiff admits that a sub-division plan was approved which incorporated additional land into the property which is the subject of this litigation. Such sub-division plan, however, did not prevent Plaintiff from conveying good title to the property to Defendant. b. Admitted in part and denied in part. It may well be that Plaintiff is not able to re-subdivide the land in question into two separate lots, but it is denied that Plaintiff could not convey good title to Defendant. In fact, Plaintiff was prepared to convey title to the entire, enlarged, property to Defendant to satisfy Plaintiff's obligations under the Installment Agreement of Sale if Defendant had performed and satisfied his obligations under that Agreement. c. Denied for the reasons set forth in Sub-Paragraphs a and b hereof. 16. Defendant was not able to obtain the loan it sought from Orrstown Bank because Defendant had improperly advised Orrstown Bank that Defendant owned a one third interest in the building in the form of a condominium unit, which information was not accurate and which was known, or should have been known to Defendant, not to be accurate. By way of further answer, Plaintiff denies that Robert G. Hartman, Jr. was ever obligated to convert the third floor of the building into a condominium. 17. Plaintiff admits that Orrstown Bank withdrew its loan commitment to Defendant but states that the loan commitment was withdrawn because Defendant could not provide title to a condominium unit as Defendant had represented to the bank that it could. 18. Denied. Plaintiff incorporates herein by reference the averments made in the following paragraphs of her Answer. 19. Admitted. 20. Admitted. By way of further answer, however, Plaintiff states that any additional expenses paid by Defendant were insignificant and are more than offset by operating expenses, including real estate taxes, which Defendant owed and has failed to pay. Moreover, any disputes between Plaintiff and Defendant regarding the enforcement of, or rights arising from, the Ownership Agreement, are not related to Plaintiff's Petition for Confession of Judgment in Ejectment and did not constitute a defense to Plaintiff's claim that Defendant has breached the Installment of Agreement for Sale. 21. Admitted. 22. Denied. Robert did install a new roof on the property in full satisfaction of his obligation set out in the Ownership Agreement. By way of further answer, Plaintiff incorporates herein, by reference, the averments set out in Paragraph 20 above. 23. Plaintiff denies that Defendant has suffered damages due to water leaks because she has inadequate information to form a belief as to the truth and accuracy of those averments and so she denies the same. She admits that Hartman & Associates, Inc. which advanced the money to replace the roof on the property, has sought payment from Defendant for its one third share of the cost of replacing the roof. Plaintiff states, however, that disputes arising out of the Ownership Agreement are not related to claims arising out of the Installment Agreement for Sale and do not constitute a defense to Plaintiff's action here. 24. Admitted. 25. Denied. Representatives of Hartman & Associates, Inc. consulted with representatives of Defendant before the roof was replaced and made the cost known. Those representatives acquired proposals or bids from multiple roofing contractors to find the best and most efficient method of replacing the roof. Plaintiff incorporates herein, by reference, the averments set out in Paragraph 23 hereof. 26. Denied as stated. It is admitted that a storage building was erected on the real estate added to the subject property by the re-subdivision plan. It is denied that the value of that building was significant or that the addition of the real estate and the construction of the building added significantly to the taxes, insurance, or other expenses for the property. Plaintiff incorporates herein by reference the averments set out in Paragraph 23 hereof. 27. Denied. Defendant's Motion was filed more than a month after Plaintiff's complaint. Defendant has failed to a meritorious defense. To the contrary, Defendant has not explained or justified in any way its failure to make payments pursuant to the Installment Agreement of Sale. Defendant's dispute, or alleged disputes, arising out of the ownership agreement do not constitute a meritorious defense to Plaintiff's Complaint in which she complained that Defendant has not made the payments due under the Installment Agreement of Sale. Defendant has not presented sufficient evidence to warrant a hearing on Plaintiff's claim. 28. Denied. If Defendant believes it is aggrieved by disputes arising out of the Ownership Agreement, Defendant's remedy is to bring an action to enforce its rights under that Agreement. Defendant here seeks to introduce, in the form of a counter claim, arising out of an entirely separate document, claims against the Plaintiff which it has no right to bring as a defense to Plaintiff's action in ejectment. WHEREFORE, Plaintiff moves this court to deny Defendant's Motion, and to confirm Plaintiff's Judgment in Ejectment so that Plaintiff may proceed to enforce her rights under the Installment Agreement of Sale and in accordance with the law. Samuel L. Andes Attorney for Plaintiff Supreme Court ID# 17225 525 North 12'h Street P.O. Box 168 Lemoyne, Pa 17043 (717) 761-5361 I verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unworn falsification to authorities). Date: z'l JIU I"I Z000t ?/ ?-. NET W. HARTMAN TAX PARCEL # 1 3 "'Z3 - r ? 4c! EXECUTOR'S DEED THIS DEED is made this 6 day of Z LAAj , 2009, by and between: JANET W. HARTMAN and DANIEL J. HARTMAN, Co-Executrix and Co-Executor of the Estate of Robert G. Hartman, Jr., deceased, late of Cumberland County, Pennsylvania, GRANTOR; - and - JANET W. HARTMAN, single woman, of 605 Allen Street, New Cumberland, Pennsylvania, hereinafter referred to individually or collectively, as the case may be, as GRANTEE. WHEREAS, the said Robert G. Hartman, Jr., deceased, was seized in fee of certain real estate together with the improvements thereon erected, known as 2101 Orchard Road, Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania, hereinafter described; and WHEREAS, the said Robert G. Hartman, Jr. died on 9 November 2003 leaving a Last Will and Testament dated 1 August 1996 which was approved and registered at the Office of the Register of Wills in and for Cumberland County, Pennsylvania, wherein JANET W. HARTMAN and DANIEL J. HARTMAN were appointed Co- Executrix and Co-Executor; and WHEREAS, a Petition for the Grant of Letters Testamentary was duly filed by JANET W. HARTMAN and DANIEL J. HARTMAN by which Letters Testamentary were issued on 18 December 2003; and WHEREAS, pursuant to the provisions of the Probate Estates and Fiduciaries Code, 20 Pa. C.S. Section 3351, the Executor is authorized to sell real estate of the decedent at any public or private sale. WITNESSETH, that in consideration of One ($1.00) Dollar, in hand paid by GRANTEE to GRANTOR, the receipt whereof is hereby acknowledged, the GRANTOR does hereby grant, bargain, and convey to the said GRANTEE, grantee's heirs and assigns: ALL THAT CERT-AIN-1/3-T-ENANT-S-IN-COMMON INTEREST in that tract or parcel of land and premises, situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by Tract No. 2 hereinafter described, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence, still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, North 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a building known as "Park Place" Office Building and known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. UNDER AND SUBJECT to all rights, restrictions, easements and rights-of-way of prior record. BEING a portion of the same premises which Dauphin Deposit Bank and Trust Company, by its deed dated 19 April 1994 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book 104 at Page 367, granted and conveyed unto Robert G. Hartman, Jr. Thereafter, by a deed dated 19 September 1996 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book 146 at Page 684, the said Robert G. Hartman, Jr., conveyed a two-thirds interest in that property to Janet W. Hartman, the grantee herein. This deed is given to convey the balance of that property to the grantee, Janet W. Hartman. TOGETHER with all and singular the buildings, improvements, ways, streets, alleys, passages, waters, water-courses, rights, liberties, privileges, hereditaments and appurtenances whatsoever, thereunto belonging or in any wise appertaining and the reversions and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, property, claim and demand whatsoever of her, the said decedent, at and immediately before the time of her decease, in law, equity, or otherwise howsoever, of, in, to or out of the same. TO HAVE AND TO HOLD the said lot or piece of ground above described, with the buildings and improvements thereon erected, hereditaments and premises hereby granted or mentioned, and intended so to be, with the appurtenances, unto the said Grantee, Grantee's heirs and assigns, to and for the only proper use and behoof of the said Grantee, Grantee's heirs and assigns, forever. IN WITNESS WHEREOF, the said Grantor has hereunto set their hands and seals the day and year first above written. (SEAL). ss ariet W. Hartman Co-Executrix of the Estate of Robert G. Hartman, Jr. (SEAL) ss aniel a an Co-Execut of the Estate of Robert G. Hartman, Jr. I hereby certify that the precise address of the grantee herein is 605 Allen Street New Cumberland, PA 17070 ey Qrr ee COMMONWEALTH OF PENNSYLVANIA ) ( SS.. COUNTY OF CUMBERLAND ) On this, the 40 4-k day of 314 (-V , 2009, before me, a Notary Public, the undersigned officer, personally appeared JANET W. HARTMAN, Co-Executrix of the Estate of Robert G. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ly. Notary Publ c COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL LYNN EHRENFELD, Notary Public Lemoyne Boro., Cumberland County j ?ll'*sjQn.41res February 1, 2013 COMMONWEALTH OF PENNSYLVANIA ) ( SS.. COUNTY OF CUMBERLAND ) On this, the (? day of Jl*t L.y , 2009, before me, a Notary Public, the undersigned officer, personally appeared DANIEL J. HARTMAN, Co-Executor of the Estate of Robert G-. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. lam. Notary Pubic COMMOMM&TH OF PENNSYLVANIA NOTARIAL SEAL LYNN EHRENFELD, Notary Public Lemoyne Boro., Cumberland County M Commission s February 1, 2013 l' cs,n ASSIGNMENT OF INSTALLMENT AGREEMENT OF SALE THIS ASSIGNMENT OF INSTALLMENT AGREEMENT OF SALE is made this 4 4 day of Toll 2009, and is from JANET W. HARTMAN and DANIEL J. HARTMAN, Co-Executrix and Co-Executor of the Estate of Robert G. Hartman, Jr., as Assignor (and referred to hereinafter as "Assignor"); and JANET W. HARTMAN, an adult individual who resides at 605 Allen Street, New Cumberland, Pennsylvania, as Assignee (and referred to hereinafter as "Assignee"). WITNESSETH: WHEREAS, during his lifetime, Robert G. Hartman, Jr., by an Installment Agreement of Sale dated 24 October 1994 (a copy of which is attached hereto as Exhibit A), agreed to sell an undivided one-third interest, as tenants in common, in real estate situate in Lower Allen Township, Cumberland County, Pennsylvania, being known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, to Hershey- Philbin Associates, Inc.; and WHEREAS, the said Robert G. Hartman, Jr., died on 9 November 2003 and the Register of Wills of Cumberland County, Pennsylvania, subsequently appointed Assignor as the Co-Executrix and Co- Executor of his estate; and WHEREAS, to complete the settlement of the estate, and the distribution of assets and liabilities, Assignor has decided to distribute to Janet W. Hartman the Installment Agreement of Sale referred to above, and all of the rights, remedies, and responsibilities arising from said agreement, and the parties wish to have their assignment reduced to writing. NOW, THEREFORE, in consideration of the above recitals and of the assignment hereinafter set forth, as well as for other good and valuable considerations, Assignor does hereby assign, transfer, grant, convey, and set-over unto Assignee all of Assignor's right, title, and interest in the aforementioned Installment Agreement of Sale, dated 24 October 1994, together with the real estate interest which is the subject of said agreement, the right to receive payments and other benefits from the agreement, and the duty and obligation to perform certain obligations and performances required by said agreement. AND FURTHER, Assignor shall make, execute, acknowledge and deliver a special warranty deed transferring unto Assignee all of the interest held by Assignor and the said Robert G. Hartman, Jr., in the real estate in Lower Allen Township, Cumberland County, Pennsylvania, which is the subject of the said Installment Agreement of Sale. IN CONSIDERATION of which, the Assignee agrees to be bound by and to perform all of the duties, obligations, and performances required of the seller in the said Installment Agreement of Sale and to indemnify and save Assignor harmless from any loss, cost, or expense caused to Assignor by Assignee's failure to perform such matters when and as required. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ESTATE OF ROBERT G. HARTMAN, JR. i ss ess Witn Ji# et W. Hartman, Co-Executrix 1 Daniel J. 'art a , Co-Executor ASSIGNEE: ?'?lanet W. Hartman COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the G+1 day of S?Ly 2009, before me, a Notary Public, the undersigned officer, personal) appeared JANET W. HARTMAN, Co-Executrix of the Estate of Robert G. Hartman Jr. known to me (or satisfactorily Y be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same fo? the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. L?'?.v? NotaryPublic COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL LYNN EHRENFELD, Notary Public Lemoyne Boro., Cumberland County M Commission Ex ores February 1, 2013 COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the 6 day of . 2009, before me, a Notary Public, the undersigned officer, personally appeared DANIEL ? . HARTMAN, Co-Executor of the Estate of Robert G. Hartman Jr., known to me (or satisfactorily to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed he same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. L7 Notary Pu lic COMMONWEALTH OF PENN YLVANIA NOTARIAL SEAL LYNN EHRENFELD? Notary Public Lemoyne-Born Cumbedand-County Commission Expires Febru 1, 2013 COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the 6*- day of SLt V`/ 2009, before me, a Notary Public, the undersigned officer, personally appeared JANET W. HARTMAN, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. 4 rw?` Notary Pub c COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL LYNN EHRENFELD, Notary Public Lemoyne Boro., Cumberland County Commis 101 I MS Febru 1, 2013 INSTALLMENT AGREEMENT OF SALE THIS AGREEMENT made as of the day of (Sl'? , 1994 by.and between ROBERT G. HARTMAN, JR. of Cumberland County, Pennsylvania, hereinafter referred to as "seller" and HERSHEY- PHILBIN ASSOCIATES, INC. of Dauphin County, Pennsylvania, here- inafter referred to as "buyer," WITNESSETH: THAT, in consideration of the mutual covenants and agree- ments hereiriafter contained, seller agrees to sell and convey, and buyer agrees to purchase, ALL that certain tract or'parcel of land in Lower Allen GUIDO, FF & ,AND ket Sfted rill, PA Township, Cumberland County, Pennsylvania, being a one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvani--?, and the curtilage as more particularly described and set forth in Exhibit "A" attached hereto and incorporated herein by reference, upon the following terms and conditions: 1. CONSIDERATION - The purchase price to be paid by. buyer shall be the sum.of $148,000, to be paid as follows: A. $14,800 in cash at the signing and delivery of this agreement, the receipt whereof is hereby acknowledged; B. The balance of $133,200, together with inter- est at therate of 7.5% per annum shall.be due and payable.within f a years from the date hereof. Commencing on the 1st day of if 1 1994, and thereafter on the let day Af each month, buyer shall make payments of $1,234.80 to be applied first to interest as aforesaid and the balance to principal until both principal and interest have been fully paid. Nothing herein con- tained shall alter or affect the maturity date of this agreement. 1 i 2. PREPAYMENT - Buyer shall have the right to prepay all or any part.of the unpaid principal balance, without penalty for such prepayment, at any time and from time to time on any regular Installment due date, together with interest on such prepayment to the date of payment. At the time of payment in full, together with interest as aforesaid, buyer shall be enti- tled to receive title to the subject premises from seller, and seller shall be obligated to convey title to the subject premises to buyer in the manner-set forth hereinafter in Paragraph 9. IS, GUIDO, [UFF & •SLAND Aftimt strfet iP HM, PA 3. APPORTIONMENT OF REAL ESTATE TAXES RENTS AND EXPENSES - Local real estate taxes shall be apportioned on a fiscal year basis to the date of execution of this agreement. Thereafter, real estate taxes shall be apportioned in conformity to a tenants in common ownership agreement attached hereto as Exhibit "B"*and made a part hereof. 4. TRANSFER TAXES - Seller shall pay all state realty transfer taxes calculated on the agreed consideration at the rate applicable on the date of this agreement; buyer shall pay any local transfer tax, any documentary tax, and any increases in the rate of the. state tax from that existing at the date of this agreement. Said conveyance'stamps and taxes shall be furnished or paid for at the time of delivery of the deed. 5. POSSESSION AND OCCUPANCY -- Buyer shall be entitled to possession of the third floor of the premises and an unspeci- fied one-third, but not less than 20, of the parking spaces in the parking areas adjacent to the premises upon execution of this agreement in conjunction with the rights of the seller in said parking areas. 6. RECORDING - This agreement may be filed of record in any public office, as appropriate. 7. LEGAL TITLE - Upon payment in full, seller, his- heirs and assigns, is obligated to convey to buyer, its-heirs, successors and assigns, legal title to the premises free and clear of all liens, encumbrances and easements,,excepting the following: existing building restrictions, ordinances, easements of roads, privileges or rights of public service companies, if any, agreements or like matters of record, and easements or restrictions visible upon the ground, and a first mortgage to Pennsylvania State Bank in the original amount of $238,400, which obligation shall remain the obligation of seller without any . contribution by buyer. Otherwise, the title to the described real estate shall be good and marketable, such as will be insured by a licensed title insurance company at regular rates. Legal title shall be conveyed by fee simple deed with a special war- ranty. In the event seller is unable to give a good and marketable title such as will be insured by a licensed title insurance company subject to the aforesaid, buyer shall have the option-of.taking such title as seller can give, without abatement of price, or of being repaid all moneys paid by buyer to seller on account of.the-purchase price, together with such reasonable costs of searching the title as buyer may have incurred. In the latter event, there shall be no further liability or obligation as to either-party concerning this agreement which thereafter shall be null and void. Buyer shall be entitled to recover the aforesaid costs of title search only if buyer obtained an attor- ney's opinion of condition of title and notified seller of any objections within thirty (30) days after date hereof. 3, GUIDO, UFF & SLAND :arket street > Hill, PA 8. MAINTENANCE, REPAIRS, INSURANCE AND TAXES - Buyer agrees that buyer, at its own expense, will maintain the third floor of the premises in a reasonable state of repair at all times and will make any improvements to said premises without contribution from the seller. Buyer agrees to make any and all repairs to the third floor which, from time to time, become necessary or are mandated by federal,'state, county or municipal law, ordinance or code in effect now or may b-ecome effective in the future. Common maintenance, repairs, insurance and taxes relating to the premises as a whole shall be made in accordance with the tenants in common ownership agreement. 9. IMPROVEMENTS.AND ALTERATIONS - No major improve- ments or alterations shall be made to the premises without the prior written consent of seller, which consent shall not be withheld unreasonably. Buyer agrees that seller or seller's agents shall have the right at all reasonable times of the day and upon reasonable notice under the circumstances to enter the premises for the_ purpose of inspection- to- det-ermine whether buyer has complied with the terms hereof. . In the event of buyer's default as to the terms of this agreement, any and all improvements and additions made to the subject premises shall be and remain.a permanent part of the premises; they shall not be removed by buyer and.buyer will not be entitled to any reimbursement therefor;-nevertheless, if such improvements, alterations or additions were made without the written prior approval of seller, buyer will remove same within thirty (30) days, upon written notice from seller so to do. In the event of such notice to remove these items, buyer will repair the surfaces from which such improvements were removed in confor- mity with the. surrounding surfaces. .10. -STRUCTURAL CHANGES - No structural changes shall be made to the.premiss occupied by the buyer without the knowl- edge and written consent of the seller. 3, GUIDO, UFF & 3LAND 'arket Strcet w M11, PA 11. ASSIGNMENT OR`SALE - This agreement may not be? assigned by buyer without the prior written approval of seller, nor may the premises be sold by buyer by means of an'installment sales agreement or comparable document without the prior written approval of seller; provided that the premises purchased by buyer may be sold in accordance with the Tenants in Common Ownership Agreement. 12. WARRANTY AS TO CONDITION, USE OR OCCUPANCY - The premises are being sold in "as is" condition and it is understood that buyer has inspected the property or hereby waives the right to do so, and that buyer has agreed to purchase the property as the result of buyer's inspection and not because of or in reliance on any representation made by the seller or seller's agent. Seller makes no warranty or representation.as to the conformity of any future use or occupancy of the subject premises insofar as federal, state or local laws are concerned relative to 'zoning, building or other laws, ordinances or codes. In the event that buyer wishes-to obtain approval of a change of use or occupancy, seller agrees to cooperate to any reasonable degree in such application or request, providing all costs associated therewith shall be borne by buyer. 13. CONDEMNATION - In the event of condemnation of the subject premises or any portion thereof by any governmental agency, public authority or utility prior to the payment of all the within obligations from buyer to seller, the payment of damages for the "taking" shall be divided between the buyer and the seller "as their respective interests then may appear." 14. DEFAULT - Any failure of the buyer to make payment of any moneys required.. by this- agreement within- thirty (30) days after the due date for.such payment, or any acts, or the perfor- mance of any act forbidden by this agreement, or the failure to perform any act required by this agreement, may constitute a default, at the option of seller. In the case of default by buyer, seller shall retain any and all moneys received under the provisions of this agreement (whether on account of purchase money or otherwise) as compensation for buyer's use and occupancy of said premises. 15. CONFESSION OF JUDGMENT - In the event of default of payment of any sum of principal or interest herein agreed to be paid for the space of thirty (30) days after the same shall. become due and payable by the terms hereof, or the breach of any other of the terms of this agreement, the whole of said principal sum, at the option of seller, shall become due and payable forthwith, anything hereinbefore contained to the contrary..;` notwithstanding. In such case of default, buyer 'hereby .author- izes and .empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere to appear for buyer and confess a judgment for the entire principal sum and interest remaining unpaid hereon, with 5% attorney's commission or fees, hereby waiving the right of exemption and inquisition, so far as the land herein described, and any property or building thereon may be concerned. Said seller, at seller's option, among other remedies available to seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recov- ery of said premises; in such case, buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere,-to appear for buyer and confess judgment of ejectment, and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave or court) for the costs and 5% attorney's commission or fees, waiving all stay and exemption laws. Prior to the entry of judgment by confession or-the filing of an action of ejectment, seller shall give to buyer written notice of default and seller's intention to proceed by .legal action, which notice shall provide a period of thirty (30) days during which the buyer can correct the default. 16. RIGHT OF BUYER TO PAY LIENS - GUIDO, J" A LAND irkct strw Hill, PA A. Notice - In addition to the aforementioned mortgage to Pennsylvania .State Bank, notice of the entry of any mortgage, judgment, lien or other encumbrance affecting title to said premises received by the seller after the date of the execution of this agreement shall be given by the seller tothe buyer within, thirty (-30F days of the recording thereof in the Cumberland County Court House. B. Delinquent Payments - In the event any mort- gage, judgment, lien.or other encumbrance affecting title to the premises existing at the date of the execution of this agreement or hereafter entered of record and default in the payment is made by the seller, then buyer shall have the right to make the delinquent payments and to receive credit for the full amount of said payments made by the buyer and to deduct the amount thereof from the required monthly payments under this agreement...Prior to exercising the rights stated in this paragraph, buyer shall give seller 48 hours notice by certified mail of his intent to do so.,'but this provision shall not limit* 'buyer"'s right to'make the delinquent payments and to claim credit therefor. 17. APPLICABLE LAW - In the event of any disagreement or misunderstanding, the terms of this agreement shall be con- strued pursuant to the laws of the Commonwealth of Pennsylvania in effect at the time of the execution hereof and as they may be amended subsequently. GUIDO, 7FF & LAND ukat Stmt Hill, PA 18. SELLER'S RIGHT TO SEVER BUYER'S INTEREST AS A UNIT OF A dONDOMINIUM STRUCTURE - Seller, at any time during the five year period. of this agreement, may elect to file documents with the appropriate authorities to make the entire building and the cartilage described on Exhibit "A" as 'a condominium structure and to limit buyer's interest in the condominium to the third floor, an undefined one-third of the applicable parking area and an interest in the common elements of the building. 19. ENTIRE AGREEMENT - This document contains the entire agreement between buyer and seller; there are no represen- tations, warranties, covenants, terms or conditions, except as specifically set forth herein. 20. TIME OF THE-ESSENCE - It•is the agreement of the parties hereto that time shall be of the essence. 21. BINDING AGREEMENT - This agreement shall extend to and be legally binding upon the parties, their respective heirs, executors, administrators and assigns.. 22. WAIVER - The failure of either party to insist upon strict enforcement of any provisions of this agreement shall not constitute a waiver of the right to enforcement of that provision or of any other provision. 23. DESCRIPTIVE HEADINGS - The descriptive headings used herein are'for convenience only and they are not intended to indicate all of the matter in the sections-which follow them. Accordingly,- they have- no- effect-- whatsoever in determining the rights or obligations of the parties. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year,first above, written. WITNESS: (SEAL) obert G. Hartman, J V. GUIDO, 7FF & U,AND uket Street Hill, PA ATTEST: HERSHEY-PHILBIN ASSOCIATES, INC. -------------- Secretar President (SEAL) COMMONWEALTH OF PENNSYLVANIA) COUNTY OF SS. CUMBERLAND) I I hereby certify that on this C0 ? day of Oe 1994; before me, /. a notary public in and for the above count y and state, personally appeared- the attorney named in the foregoing Indenture, and pursuance of the authority therein conferred by virtue and in edged edged the said Indenture to be the act upon him, acknowl- deed of the said Hershey-Philbin Associates, Inc. WITNESS my hand and notarial seal the day and year afore- said. • r otary Public S, GUIDO, TJFF & SLAND tarket Street P Hill, PA rMELMA S. M NOTARIAL AAA SFAL SLIN, Notary Public Camp Hill Cumberland County MY Commission Expires July linty EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and-described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said oint 30. feet west of the center line of Carlisle Ro-ad; thencebbynotherll lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of, Garver, North 15 degrees 52 minutes West,.215.27-feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. ' YUIDO, E& kND :t street 1. PA 13 F i I F C) 2009 JUL 31 nE 1 3• 3 4 CUPJi w TV JANET W. HARTMAN, Plaintiff VS. HERSHEY-PHILBIN ASSOCIATES, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA n 'T 4 CIVIL ACTION - LAW ! r, <Y r,: NO. 08-7503 CIVILM MOTION TO FILE AMENDED COMPLAINT cz) 'rl .-I X 41 J :m AND NOW comes the above-named Plaintiff, by her attorney, Samuel L. Andes, and moves the Court for leave to file an Amended Complaint for Confession of Judgment in the above matter, based upon the following: 1. Plaintiff commenced this action by filing a Complaint for Confession of Judgment in Ejectment on 29 December 2008. 2. Following the entry of judgment, Plaintiff discovered some problems with the chain of title to the property which is the subject of this action and with the legal description to the property described in both her complaint and in the confession of judgment entered on that complaint. 3. Plaintiff has corrected the apparent defects or problems in the chain of title and now wishes to amend her complaint to reflect the steps taken to correct those problems and to correct the legal description of the property for which she has confessed judgment in ejectment. 4. The Rules of Court, and specifically Pa. R.C.P. 1033, permit the liberal amendment of pleadings to conform to the facts in a case such as this. 5. Defendant will not be prejudiced by permitting Plaintiff to amend her complaint. WHEREFORE, Plaintiff moves this Court for leave to file the amended complaint, a copy of which is attached hereto and marked as Exhibit A. _C?2_ - - (?CL' 0, Samuel L. Andes Attorney for Plaintiff P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 CERTIFICATE OF SERVICE I hereby certify that I served a copy of the foregoing document upon counsel for the Defendant herein by regular mail, postage prepaid, addressed as follows: R. Mark Thomas, Esquire 101 South Market Street Mechanicsburg, PA 17055 Date: 111111C) ' Amy Harkins Secretary for Samuel L. Andes f OF 7?_7 2010 JAN 12 All 9: 10 JANET W. HARTMAN, Plaintiff VS. HERSHEY-PHILBIN ASSOCIATES, INC., Defendant IN THE C016' F C.i7lQ N ONS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 08-7503 CIVIL TERM AMENDED COMPLAINT FOR CONFESSION OF JUDGMENT IN EJECTMENT AND NOW comes the above-named Plaintiff, by her attorney Samuel L. Andes, and files the following Amended Complaint for Confession of Judgment in Ejectment to amend the Complaint previously filed on 28 December 2008, all based upon the following: 1. The Plaintiff is Janet W. Hartman, an adult individual who resides in New Cumberland, Cumberland County, Pennsylvania. 2. The Defendant is Hershey-Philbin Associates, Inc., a Pennsylvania corporation which maintains its principal offices at 2101 Orchard Road in Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania. 3. By an Installment Agreement of Sale dated 24 October 1994, between the Defendant and Robert G. Hartman, Jr., Defendant agreed to purchase a one-third interest in premises known and numbered as 2101 Orchard Road in Camp Hill, Pennsylvania, which premises were more particularly described in Exhibit A attached to the said Agreement, and pay for that property the sum of $148,000.00. A photostatic copy of the Installment Agreement of Sale, which is a true and correct reproduction of the original agreement, is attached hereto and marked as Exhibit A. 4. Prior to his death, by Deed dated 19 September 1996, the said Robert G. Hartman, Jr. attempted to convey the entire property which was the subject of the aforementioned agreement, and transfer his interest in that agreement, to his wife, Janet W. Hartman, the Plaintiff herein. The deed by which he sought to convey the property, however, erroneously described only a portion of it and was incomplete. Following his death, the intended transfer of the real estate, and the assignment of the Installment Assignment of Sale dated 24 October 1994, were confirmed by an executor's deed dated 6 July 2009, a copy of which is attached hereto and marked as Exhibit B and an Assignment of Installment Agreement of Sale, also dated 6 July 2009, a copy of which is attached hereto and marked Exhibit C. 5. As a result of these conveyances and assignments, the Plaintiff is now the owner of the property and the rights under the agreement of sale which she now seeks to enforce. 6. Paragraph 15 of the aforementioned agreement of sale contains a warrant of attorney permitting a confession of judgment in ejectment in the event of Defendant's default and specifically states: Said Seller, at Seller's option among other remedies available to Seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recovery of said premises; in such case, Buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere, to appear for Buyer and confess judgment of ejectment and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave of court) for the costs and a 5% attorney's commission or fees, waiving all stay and exemption laws. 7. Defendant is in default of its obligations under the agreement of sale as follows: A. Payments due for the months of November and December of 2007 and January of 2008 were not paid until March of 2008, making those payments all at least sixty (60) days late. B. Payment due for the month of February 2008 was not made until April of that year. C. Payment due for the month of March 2008 was not made until May of that year. D. Payment due for the month of April 2008 was not made until August of that year. E. The payments due for the month of May 2008 and subsequent months have not been paid. Pursuant to Paragraph 1 of the aforementioned Agreement, the monthly payments, in the amount of $1,234.80 were to be paid on the 1St day of each month. As a result of the failure to make these payments, the amount due is $23,461.20 for unpaid installments due as of the date of this complaint. 8. Paragraph 15 of the aforementioned Agreement requires Plaintiff to give Defendant at least thirty (30) days' prior notice before commencing an action in ejectment. Plaintiff, through her attorney, gave that notice to Defendant, through its attorney, by a Notice of Default dated 19 September 2008 and mailed that day. A copy of said Notice of Default is attached hereto and marked as Exhibit D. 9. Plaintiff originally entered judgment in this matter by filing her Complaint for Confession of Judgment in Ejectment on 29 December 2008. This Amended Complaint is filed to amend that pleading. Other than this pending action, there have been no prior judgments entered on the aforementioned agreement in any jurisdiction prior to this action. 10. No judgment has been entered on the aforementioned agreement in any jurisdiction prior to this action. 11. The judgment entered in this matter is not entered against a natural person in connection with a residential lease. 12. The property for which Plaintiff seeks a judgment of ejectment is the Defendant's one- third interest, as a tenant in common, in the property known and numbered as 2101 Orchard Road in Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania, and is more particularly bounded and described on Exhibit E which is attached hereto and made a part hereof. WHEREFORE, Plaintiff demands a judgment in ejectment against the Defendant for the property described in Exhibit E attached hereto. Sa L. Andes Attorney for Plaintiff Supreme Court ID 17225 525 North 12th Street P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 I verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unsworn falsification to authorities). Date: l ET W. HARTMAN CERTIFICATE OF SERVICE I hereby certify that I served a copy of the foregoing document upon counsel for the Defendant herein by regular mail, postage prepaid, addressed as follows: R. Mark Thomas, Esquire 101 South Market Street Mechanicsburg, PA 17055 Date: I 11111C) OjW Im .,\+Vl 'ti? Amy M. rkins Secretary for Samuel L. Andes EXHIBIT A INSTALLMENT AGREEMENT OF SALE THIS AGREEMENT made as of the ,?V-6- day of 6 az9=6 1994 by and between ROBERT G. HARTMAN, JR. of Cumberland County, Pennsylvania, hereinafter referred to as "seller" and HERSHEY- PHILBIN ASSOCIATES, INC. of Dauphin County, Pennsylvania, here- inafter referred to as "buyer," WITNESSETH: THAT, in consideration of the mutual covenants and agree- ments hereinafter contained, seller agrees to sell and convey, and buyer agrees to purchase, ALL that certain tract or parcel of land in Lower Allen DIS, GUIDO, SHUFF & 1ASLAND 0 Market Street 'amp Hill, PA Township, Cumberland County, Pennsylvania, being a one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, and the curtilage as more particularly described and set forth in Exhibit "A" attached hereto and incorporated herein by reference, upon the following terms and conditions: 1. CONSIDERATION - The purchase price to be paid by. buyer shall be the sum of $148,000, to be paid as follows: A. $14,800 in cash at the signing and delivery of this agreement, the receipt whereof is hereby acknowledged; B. The balance of $133,200, together with inter- est at the rate of 7.5% per annum shall be due and payable within fi e years from the date hereof. Commencing on the 1st day of month, buyer shall make 94a and thereafter on the lst day cif each to interest as aforesaid payments first ande the balance $1,234.80 to 8 principal applie uuntil both principal and interest have been fully paid. Nothing herein con- tained shall alter or affect the maturity date of this agreement. i 2. PREPAYMENT - Buyer shall have the right to prepay all or any part of the unpaid principal balance, without penalty for such prepayment, at any time and from time to time on any regular installment due date, together with interest on such prepayment to the date of payment. At the time of payment in full, together with interest as aforesaid, buyer shall be enti- tled to receive title to the subject premises from seller, and seller shall be obligated to convey title to the subject premises to buyer in the manner-set forth hereinafter in Paragraph 9. MIDIS, GUMO, SHUFF & MASLAND .109 Market Street Camp Hill, PA 3. APPORTIONMENT OF REAL ESTATE TAXES RENTS AND EXPENSES - Local real estate taxes shall be apportioned on a fiscal year basis to the date of execution of this agreement. Thereafter, real estate taxes shall be apportioned in conformity to a tenants in common ownership agreement attached hereto as Exhibit "B" and made a part hereof. 4. TRANSFER TAXES - Seller shall pay all state realty transfer taxes calculated on the agreed consideration at the rate applicable on the date of this agreement; buyer shall pay any local transfer tax, any documentary tax, and any increases in the rate of the. state tax from that existing at the date of this agreement. Said conveyance'stamps and taxes shall be furnished or paid for at the time of delivery of the deed. 5. POSSESSION AND OCCUPANCY - Buyer shall be entitled to possession of the third floor of the premises and an unspeci- fied one-third, but not less than 20, of the parking spaces in the parking areas adjacent to the premises upon execution of this agreement in conjunction with the rights of the seller in said parking areas. 6. RECORDING - This agreement may be filed of record in any public office, as appropriate. 7. LEGAL TITLE - Upon payment in full, seller, his heirs and assigns, is obligated to convey to buyer, its heirs, successors and assigns, legal title to the premises free and clear of all liens, encumbrances and easements,.excepting the following: existing building restrictions, ordinances, easements of roads, privileges or rights of public service companies, if any, agreements or like matters of record, and easements or restrictions visible upon the ground, and a first mortgage to Pennsylvania State Bank in the original amount of $238,400, which obligation shall remain the obligation of seller without any contribution by buyer. Otherwise, the title to the described real estate shall be good and marketable, such as will be insured by a licensed title insurance company at regular rates. Legal title shall be conveyed by fee simple deed with a special war- ranty. In the event seller is unable to give a good and marketable title such as will be insured by a licensed title insurance company subject to the aforesaid, buyer shall have the option of taking such title as seller can give, without abatement of price, or of being repaid all moneys paid by buyer to seller on account of the purchase price, together with such reasonable costs of searching the title as buyer may have incurred. In the latter event, there shall be no further liability or obligation as to either party concerning this agreement which thereafter shall be null and void. Buyer shall be entitled to recover the aforesaid costs of title search only if buyer obtained an attor- ney's opinion of condition of title and notified seller of any objections within thirty (30) days after date hereof. .IRIS, GUIDO, Slim & MASLAND 109 Market Street Camp Hill, PA 8. MAINTENANCE, REPAIRS, INSURANCE AND TAXES - Buyer agrees that buyer, at its own expense, will maintain the third floor of the premises in a reasonable state of repair at all times and will make any improvements to said premises without contribution from the seller. Buyer agrees to make any and all repairs to the third floor which, from time to time, become necessary or are mandated by federal, state, county or municipal law, ordinance or code in effect now or may become effective in the future. Common maintenance, repairs, insurance and taxes relating to the premises as a whole shall be made in accordance with the tenants in common ownership agreement. 9. IMPROVEMENTS AND ALTERATIONS - No major improve- ments or alterations shall be made to the premises without the prior written consent of seller, which consent shall not be withheld unreasonably. Buyer agrees that seller or seller's agents shall have the right at all reasonable times of the day and upon reasonable notice under the circumstances to enter the premises for the purpose of inspection to determine whether buyer has complied with the terms hereof. In the event of buyer's default as to the terms of this agreement, any and all improvements and additions made to the subject premises shall be and remain a permanent part of the premises; they shall not be removed by buyer and,buyer will not be entitled to any reimbursement therefor; nevertheless, if such improvements, alterations or additions were made without the written prior approval of seller, buyer will remove same within thirty (30) days, upon written notice from seller so to do. In the event of such notice to remove these items, buyer will repair the surfaces from which such improvements were removed in confor- mity with the surrounding surfaces. 10. STRUCTURAL CHANGES - No structural changes shall be made to the premiss occupied by the buyer without the knowl- edge and written consent of the seller. .IDIS, GUIDO, SHUFF & MASLAND 109 Market Street Camp Hill, PA 11. ASSIGNMENT OR SALE - This agreement may not be assigned by buyer without the prior written approval of seller, nor may the premises be sold by buyer by means of an,installment sales agreement or comparable document without the prior written approval of seller; provided that the premises purchased by buyer may be sold in accordance with the Tenants in Common Ownership Agreement. 12. WARRANTY AS TO CONDITION, USE OR OCCUPANCY - The premises are being sold in "as is" condition and it is understood that buyer has inspected the property or hereby waives the right to do so, and that buyer has agreed to purchase the property as the result of buyer's inspection and not because of or in reliance on any representation made by the seller or seller's agent. Seller makes no warranty or representation as to the conformity of any future use or occupancy of the subject premises insofar as federal, state or local laws are concerned relative to zoning, building or other laws, ordinances or codes. In the event that buyer wishes to obtain approval of a change of use or occupancy, seller agrees to cooperate to any reasonable degree in such application or request, providing all costs associated therewith shall be borne by buyer. 13. CONDEMNATION - In the event of condemnation of the subject premises or any portion thereof by any governmental agency, public authority or utility prior to the payment of all the within obligations from buyer to seller, the payment of damages for the "taking" shall be divided between the buyer and the seller "as their respective interests then may appear." 14. DEFAULT - Any failure of the buyer to make payment of any moneys required by this agreement within thirty (30) days after the due date for such payment, or any acts, or the perfor- mance of any act forbidden by this agreement, or the failure to perform any act required by this agreement, may constitute a default, at the option of seller. In the case of default by buyer, seller shall retain any and all moneys received under the provisions of this agreement (whether on account of purchase money or otherwise) as compensation for buyer's use and occupancy of said premises. 15. CONFESSION OF JUDGMENT - In the event of default of payment of any sum of principal or interest herein agreed to be paid for the space of thirty (30) days after the same shall become due and payable by the terms hereof, or the breach of any other of the terms of this agreement, the whole of said principal sum, at the option of seller, shall become due and payable forthwith, anything hereinbefore contained to the contrary. notwithstanding. In such case of default, buyer hereby author- izes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere to appear for buyer and confess a judgment for the entire principal sum and interest remaining unpaid hereon, with 5% attorney's commission or fees, hereby waiving the right of exemption and inquisition, so far as the land herein described, and any property or building thereon may be concerned. Said seller, at seller's option, among other remedies available to seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recov- ery of said premises; in such case, buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere, to appear for buyer and confess judgment of ejectment, and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave or court) for the costs and 5% attorney's commission or fees, waiving all stay and exemption laws. Prior to the entry of judgment by confession or the filing of an action of ejectment, seller shall give to buyer written notice of default and seller's intention to proceed by legal action, which notice shall provide a period of thirty (30) days during which the buyer can correct the default. 16. RIGHT OF BUYER TO PAY LIENS - mIS, GUIDO, SNUFF & AMLAND 09 Market Street Camp Hill, PA .A. Notice - In addition to the aforementioned mortgage to Pennsylvania State Bank, notice of the entry of any mortgage, judgment, lien or other encumbrance affecting title to said premises received by the seller after the date of the execution of this agreement shall be given by the seller to the buyer within thirty (30) days of the recording thereof in the Cumberland County Court House. B. Delinquent Payments - In the event any mort- gage, judgment, lien or other encumbrance affecting title to the premises existing at the date of the execution of this agreement or hereafter entered of record and default in the payment is made by the seller, then buyer shall have the right to make the delinquent payments and to receive credit for the full amount of said payments made by the buyer and to deduct the amount thereof from the required monthly payments under this agreement. Prior to exercising the rights stated in this paragraph, buyer shall give seller 48 hours notice by certified mail of his intent to do so, but this provision shall not limit buyer's right to make the delinquent payments and to claim credit therefor. 17. APPLICABLE LAW - In the event of any disagreement or misunderstanding, the terms of this agreement shall be con- strued pursuant to the laws of the Commonwealth of Pennsylvania in effect at the time of the execution hereof and as they may be amended subsequently. 18. SELLER'S RIGHT TO SEVER BUYER'S INTEREST AS A UNIT OF A CONDOMINIUM STRUCTURE - Seller, at any time during the five year period of this agreement, may elect to file documents with the appropriate authorities to make the entire building and the curtilage described on Exhibit "A" as a condominium structure and to limit buyer's interest in the condominium to the third floor, an undefined one-third of the applicable parking area and an interest in the common elements of the building. 19. ENTIRE AGREEMENT - This document contains the entire agreement between buyer and seller; there are no represen- tations, warranties, covenants, terms or conditions, except as specifically set forth herein. 20. TIME OF THE ESSENCE - It is the agreement of the parties hereto that time shall be of the essence. 21. BINDING AGREEMENT - This agreement shall extend to and be legally binding upon the parties, their respective heirs, executors, administrators and assigns. 22. WAIVER - The failure of either party to insist upon strict enforcement of any provisions of this agreement shall not constitute a waiver of the right to enforcement of that provision or of any other provision. 23. DESCRIPTIVE HEADINGS - The descriptive headings used herein are for convenience only and they are not intended to indicate all of the matter in the sections which follow them. Accordingly, they have no effect whatsoever in determining the rights or obligations of the parties. IDIS,GUIDO, IN WITNESS WHEREOF, the parties have hereunto set their SNUFF & MASLAND hands and seals the day and year first above written. 09 Market Street Camp Hill, PA WITNESS: (SEAL) 11obert G. Hartman, J V. ATTEST: HERSHEY-PHILBIN ASSOCIATES, INC. (SEAL) Secretar y ? <ZL President WIS, GUIDO, SNUFF & MASLAND 09 Market Street Camp Hill, PA COMMONWEALTH OF PENNSYLVANIA) COUNTY OF SS. CUMBERLAND) I hereby certify that on this <::17day of 01ce-Z4.z 1994, before me, a notary public in and for the above county and state, personally appeared = '4? 5,5. the attorney named in the foregoing Indenture, and by virtue and in pursuance of the authority therein conferred upon him, acknowl- edged the said Indenture to be the act and deed of the said Hershey-Philbin Associates, Inc. WITNESS my hand and notarial seal the day and year afore- said. r rotary Public MIDIS, GUIDO, SHUFF & MASLAND 109 Market Street Camp Hill, PA N07IAL SEAL THELMA S. M CAUSL N Notary Public Camp y!A Cumberland County my Commission Expires Jul y 3, 19 EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. -IS, GUIDO, ffUF7 & IISLAND Market Street np Hill, PA 13 EXHIBIT B 0000VI TAX PARCEL #_ 1-6-23- 6f)yq438 EXECUTOR'S DEED THIS DEED is made this 6 day of ? t L-1 , 2009, by and between: JANET W. HARTMAN and DANIEL J. HARTMAN, Co-Executrix and Co-Executor of the Estate of Robert G. Hartman, Jr., deceased, late of Cumberland County, Pennsylvania, GRANTOR; -and- JANET W. HARTMAN, single woman, of 605 Allen Street, New Cumberland, Pennsylvania, hereinafter referred to individually or collectively, as the case may be, as GRANTEE. WHEREAS, the said Robert G. Hartman, Jr., deceased, was seized in fee of certain real estate together with the improvements thereon erected, known as 2101 Orchard Road, Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania, hereinafter described; and WHEREAS, the said Robert G. Hartman, Jr. died on 9 November 2003 leaving a Last Will and Testament dated 1 August 1996 which was approved and registered at the Office of the Register of Wills in and for Cumberland County, Pennsylvania, wherein JANET W. HARTMAN and DANIEL J. HARTMAN were appointed Co- Executrix and Co-Executor; and WHEREAS, a Petition for the Grant of Letters Testamentary was duly filed by JANET W. HARTMAN and DANIEL J. HARTMAN by which Letters Testamentary were issued on 18 December 2003; and WHEREAS, pursuant to the provisions of the Probate Estates and Fiduciaries Code, 20 Pa. C.S. Section 3351, the Executor is authorized to sell real estate of the decedent at any public or private sale. WITNESSETH, that in consideration of One ($1.00) Dollar, in hand paid by GRANTEE to GRANTOR, the receipt whereof is hereby acknowledged, the GRANTOR does hereby grant, bargain, and convey to the said GRANTEE, grantee's heirs and assigns: ALL THAT CERTAIN 1/3 TENANTS IN COMMON INTEREST in that tract or parcel of land and premises, situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by Tract No. 2 hereinafter described, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence, still by other lands now or formerly of Garver, North 15 degrees 52 minutes II West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, North 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a building known as "Park Place" Office Building and known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. UNDER AND SUBJECT to all rights, restrictions, easements and rights-of-way of prior record. BEING a portion of the same premises which Dauphin Deposit Bank and Trust Company, by its deed dated 19 April 1994 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book 104 at Page 367, granted and conveyed unto Robert G. Hartman, Jr. Thereafter, by a deed dated 19 September 1996 and recorded in the Recorder of Deeds Office in and for Cumberland County, Pennsylvania, in Deed Book 146 at Page 684, the said Robert G. Hartman, Jr., conveyed a two-thirds interest in that property to Janet W. Hartman, the grantee herein. This deed is given to convey the balance of that property to the grantee, Janet W. Hartman. TOGETHER with all and singular the buildings, improvements, ways, streets, alleys, passages, waters, water-courses, rights, liberties, privileges, hereditaments and appurtenances whatsoever, thereunto belonging or in any wise appertaining and the reversions and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, property, claim and demand whatsoever of her, the said decedent, at and immediately before the time of her decease, in law, equity, or otherwise howsoever, of, in, to or out of the same. TO HAVE AND TO HOLD the said lot or piece of ground above described, with the buildings and improvements thereon erected, hereditaments and premises hereby granted or mentioned, and intended so to be, with the appurtenances, unto the said Grantee, Grantee's heirs and assigns, to and for the only proper use and behoof of the said Grantee, Grantee's heirs and assigns, forever. IN WITNESS WHEREOF, the said Grantor has hereunto set their hands and seals the day and year first above written. Witness ---"- .??` . ?`' (SEAL) 4afiet W. Hartman Co-Executrix of the Estate of Robert G. Hartman, Jr. 4 (SEAL) aniel ary an Co-Executo` of the Estate of Robert G. Hartman, Jr. I hereby certify that the precise address of the grantee herein is 605 Allen Street New Cumberland, PA 17070 4'ezzyr or r ee COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) On this, the 64'k day of TLt L V , 2009, before me, a Notary Public, the undersigned officer, personally appeared JANET W. HARTMAN, Co-Executrix of the Estate of Robert G. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. 5 Notary Public COMMONWEALTH OF PENNSY` NOTARIAL SEAL LYNN EHRENFELD, Notary Public 0WON Lemoyne Boro., Cumberland County .?...._. _?, : mmsion Expires February 1, 2013 COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the 1?? day of U11tLj 2009, before me, a Notary Public, the undersigned officer, personally appeared DANIEL J. HARTMAN, Co-Executor of the Estate of Robert G. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. Notary Pubic COMMONWEALTH OR PENNSYLA'Nj 1. NOTARIAL SEAL LYNN EHRENFELD, Notary Public'` , # Lemoyne Boro., Cumberland County My Commission Expires February 1, 2013 ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 200923630 Recorded On 7/8/2009 At 12:08:24 PM * Instrument Type - DEED Invoice Number - 47823 User ID - RAK * Grantor - HARTMAN, JANET W * Grantee - HARTMAN, JANET W * Customer - ANDES * FEES STATE WRIT TAX $0.50 STATE JCS/ACCESS TO $10.00 JUSTICE RECORDING FEES - $12.50 RECORDER OF DEEDS PARCEL CERTIFICATION $10.00 FEES AFFORDABLE HOUSING $11.50 COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 WEST SHORE SCHOOL $0.00 DISTRICT LOWER ALLEN TOWNSHIP $0.00 TOTAL PAID $49.50 * Total Pages - 5 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA ?y crt cuye? 1 /D RECORDER O ZDS t?ao * - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. iuiuiauiiuiii EXHIBIT C ti II, ' f 111111111111111 OOOOVE ASSIGNMENT OF INSTALLMENT AGREEMENT OF SALE THIS ASSIGNMENT OF INSTALLMENT AGREEMENT OF SALE is made this 4 7 day of Oil 2009, and is from JANET W. HARTMAN and DANIEL J. HARTMAN, Co-Executrix and Co-Executor of the Estate of Robert G. Hartman, Jr., as Assignor (and referred to hereinafter as "Assignor"); and JANET W. HARTMAN, an adult individual who resides at 605 Allen Street, New Cumberland, Pennsylvania, as Assignee (and referred to hereinafter as "Assignee"). WITNESSETH: WHEREAS, during his lifetime, Robert G. Hartman, Jr., by an Installment Agreement of Sale dated 24 October 1994 (a copy of which is attached hereto as Exhibit A), agreed to sell an undivided one-third interest, as tenants in common, in real estate situate in Lower Allen Township, Cumberland County, Pennsylvania, being known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, to Hershey- Philbin Associates, Inc.; and WHEREAS, the said Robert G. Hartman, Jr., died on 9 November 2003 and the Register of Wills of Cumberland County, Pennsylvania, subsequently appointed Assignor as the Co-Executrix and Co- Executor of his estate; and WHEREAS, to complete the settlement of the estate, and the distribution of assets and liabilities, Assignor has decided to distribute to Janet W. Hartman the Installment Agreement of Sale referred to above, and all of the rights, remedies, and responsibilities arising from said agreement, and the parties wish to have their assignment reduced to writing. NOW, THEREFORE, in consideration of the above recitals and of the assignment hereinafter set forth, as well as for other good and valuable considerations, Assignor does hereby assign, transfer, grant, convey, and set-over unto Assignee all of Assignor's right, title, and interest in the aforementioned Installment Agreement of Sale, dated 24 October 1994, together with the real estate interest which is the subject of said agreement, the right to receive payments and other benefits from the agreement, and the duty and obligation to perform certain obligations and performances required by said agreement. I C_ 1 AND FURTHER, Assignor shall make, execute, acknowledge and deliver a special warranty deed transferring unto Assignee all of the interest held by Assignor and the said Robert G. Hartman, Jr., in the real estate in Lower Allen Township, Cumberland County, Pennsylvania, which is the subject of the said Installment Agreement of Sale. IN CONSIDERATION of which, the Assignee agrees to be bound by and to perform all of the duties, obligations, and performances required of the seller in the said Installment Agreement of Sale and to indemnify and save Assignor harmless from any loss, cost, or expense caused to Assignor by Assignee's failure to perform such matters when and as required. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. ESTATE OF ROBERT G. HARTMAN, JR. S2 A ss D ess Witn Jpnet W. Hartman, Co-Executrix 4t Daniel J. Hart a , Co-Executor ASSIGNEE: ?., "' Janet W. Hartman COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the ?o day of 2009, before me, a Notary Public, the undersigned officer, personally appeared JANET W. HARTMAN, Co-Executrix of the Estate of Robert G. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person execut?xhe same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. ,'a .} -41 ??;? • ?- `a a 4 in P Notary Public _V, i :.'?'? ; COMMONWEALTH OF PENNSYLVANIA' °'" ' NOTARIAL SEAL LLYNN EHRENFELD, Notary Public oyne Boro., Cumberland County mmission Expires February 1, 2013 COMMONWEALTH OF PENNSYLVANIA ) ( SS.: COUNTY OF CUMBERLAND ) On this, the 6 day of -JtAL`y . 2009, before me, a Notary Public, the undersigned officer, personally appeared DANIEL :T . HARTMAN, Co-Executor of the Estate of Robert G. Hartman, Jr., known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person execute"d the same for the purposes therein contained., IN WITNESS WHEREOF, I hereunto set my hand and official seal.. Notary Public" COMMONWEALTOF RENNSYLVA L SEALi LD, Notary Public mberland County ?,; ,•. s February 1, 2013 {` COMMONWEALTH OF PENNSYLVANIA ) (SS.: COUNTY OF CUMBERLAND ) On this, the ?o day of jtl? V1 2009, before me, a Notary Public, the undersigned officer, personally appeared JANET W. HARTMAN, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that said person executed the same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. Notary Pub c A? COMMONWEALTH OF PENNSYLVANIA 3'- NOTARIAL SEAL LYNN EHRENFELD, Notary Public y ;? ° •:0 "'Y Lemoyne Boro., Cumberland County Commission Expires Februa 1 20 `` } Y r , 13 d' i • r INSTALLMENT AGREEMENT OF SALE THIS AGREEMENT made as of the day of (Sl ??? 1994 by.and between ROBERT G. HARTMAN, JR. of Cumberland County, Pennsylvania, hereinafter referred to as "seller" and HERSHEY- PHILBIN ASSOCIATES, INC. of Dauphin County, Pennsylvania, here- inafter referred to as "buyer," WITNESSETH: THAT, in consideration of the mutual covenants and agree- ments hereinafter contained, seller agrees to sell and convey, and buyer agrees to purchase, ALL that certain tract or parcel of land in Lower Allen S, GUIDO, UFF & 3LAND [arket Street M11, PA Township, Cumberland County, Pennsylvania, being a one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, and the curtilage as more particularly described and set forth in Exhibit "A" attached hereto and incorporated herein .by reference, upon the following terms and conditions: 1. CONSIDERATION - The purchase price to be paid by. buyer shall be the sum of $148,000, to be paid as follows:' A. $14,800 in cash at the signing and delivery of this agreement, the receipt whereof is hereby acknowledged; B. The balance of $133,200, together with inter- est at the rate of 7.5% per annum shall.be due and payable.within fi e years from the date hereof. Commencing on the 1st day of 1994, and thereafter on the 1st day cif each month, buyer shall make payments of $1,234.80 to be applied first to interest as aforesaid and the balance to principal until both principal and interest have been fully paid. Nothing herein con- tained shall alter or affect the maturity date of this agreement. 1 2. PREPAYMENT - Buyer shall have the right to prepay all or any part of the unpaid principal balance, without penalty for such prepayment, at any time and from time to time on any regular installment due date, together with interest on such prepayment to the date of payment. At the time of payment in full, together with interest as aforesaid, buyer shall be enti- tled to receive title to the subject premises from seller, and seller shall be obligated to convey title to the subject premises to buyer in the manner-set forth hereinafter in Paragraph 9. AS, GUIDO, HUFF & ASLAND Market Street mp Hill, PA 3. APPORTIONMENT OF REAL ESTATE TAXES RENTS AND EXPENSES - Local real estate taxes shall be apportioned on a fiscal year basis to the date of execution of this agreement. Thereafter, real estate taxes shall be apportioned in conformity to a tenants in common ownership agreement attached hereto as Exhibit "B" and made a part hereof. 4. TRANSFER TAXES - Seller shall pay all state realty transfer taxes calculated on the agreed consideration at the rate applicable on the date of this agreement; buyer shall pay any local transfer tax, any documentary tax, and any increases in the rate of the state tax from that existing at the date of this agreement. Said conveyance'stamps and taxes shall be furnished or paid for at the time of delivery of the deed. 5. POSSESSION AND OCCUPANCY - Buyer shall be entitled to possession of the third floor of the premises and an unspeci- fied one-third, but not less than 20, of the parking spaces in the parking areas adjacent to the premises upon execution of this agreement in conjunction with the rights of the seller in said parking areas. 6., RECORDING - This agreement may be filed of record in any public office, as appropriate. 7. LEGAL TITLE - Upon payment in full, seller, his heirs and assigns, is obligated to convey to buyer, its-heirs, successors and assigns, legal title to the premises free and clear of all liens, encumbrances and easements,.excepting the following: existing building restrictions, ordinances, easements of roads, privileges or rights of public service companies, if any, agreements or like matters of record, and easements or restrictions visible upon the ground, and a first mortgage to Pennsylvania State Bank in the original amount of $238,400, which obligation shall remain the obligation of seller without any contribution by buyer. Otherwise, the title to the described real estate shall be good and marketable, such as will be insured by a licensed title insurance company at regular rates. Legal title shall be conveyed by fee simple deed with a special war- ranty. In the event seller is unable to give a good and marketable title such as will be insured by a licensed title insurance company subject to the aforesaid, buyer shall have the option-of.taking such title as seller can give, without abatement of price, or of being repaid all moneys paid by buyer to seller on account of.the purchase price, together with such reasonable costs of searching the title as buyer may have incurred. In the latter event, there shall be no further liability or obligation as to either party concerning this agreement which thereafter shall be null and void. Buyer shall be entitled to recover the aforesaid costs of title search only if buyer obtained an attor- ney's opinion of condition of title and notified seller of any objections within thirty (30) days after date hereof, CIS, GUIDO, Erm & ASLAND Market Street mp Hill, PA 8. MAINTENANCE, REPAIRS, INSURANCE AND TAXES - Buyer agrees that buyer, at its own expense, will maintain the third floor of the premises in a reasonable state of repair at all times and will make any improvements to said premises without contribution from the seller. Buyer agrees to make any and all repairs to the third floor which, from time to time, become necessary or are mandated by federal, state, county or municipal law, ordinance or code in effect now or may become effective in the future. Common maintenance, repairs, insurance and taxes relating to the premises as a whole shall be made in accordance with the tenants in common ownership agreement. 9. IMPROVEMENTS.AND.ALTERATIONS No major improve- ments or alterations shall be made to the premises without the prior written consent of seller, which consent shall not be withheld unreasonably. Buyer agrees that seller or seller's agents shall have the right at all reasonable times of the day and upon reasonable notice under the circumstances to enter the premises for the purpose of inspection to determine whether buyer has complied with the terms hereof. In the event of buyer's default as to the terms of this agreement, any and all improvements and additions made to the subject premises shall be and remain a permanent part of the premises; they shall not be removed by buyer and buyer will not be entitled to any reimbursement therefor; nevertheless, if such improvements, alterations or additions were made without the written prior approval of seller, buyer will remove same within thirty (30) days, upon written notice from seller so to do. In the event of such notice to remove these items, buyer will repair the surfaces from which such improvements were removed in confor- mity with the surrounding surfaces. 10. STRUCTURAL CHANGES - No structural changes shall be made to the.premis.s occupied by the buyer without the knowl- edge and written consent of the seller. IS, GUIDO, TUFF & ,iSLAND Karkec Strwt ap Hill, PA 11. ASSIGNMENT OR SALE - This agreement may not be assigned by buyer without the prior written approval of seller, nor may the premises be sold by buyer by means of an-installment sales agreement or comparable document without the prior written approval of seller; provided that the premises purchased by buyer may be sold in accordance with the Tenants in Common Ownership Agreement. 12. WARRANTY AS TO CONDITION, USE OR OCCUPANCY - The premises are being sold in "as is" condition and it is understood that buyer has inspected the property or hereby waives the right to do so, and that buyer has agreed to purchase the property as the result of buyer's inspection and not because of or in reliance on any representation made by the seller or seller's agent. Seller makes no warranty or representation.as to the conformity of any future use or occupancy of the subject premises insofar as federal, state or local laws are concerned relative to zoning, building or other laws, ordinances or codes. In the event that buyer wishes-to obtain approval of a change of use or occupancy, seller agrees to cooperate to any reasonable degree in such application or request, providing all costs associated therewith shall be borne by buyer. 13. CONDEMNATION - In the event of condemnation of the subject premises or any portion thereof by any governmental agency, public authority or utility prior to the payment of all the within obligations from buyer to seller, the payment.of damages for the "taking" shall be divided between the buyer and the seller "as their respective interests then may appear." 14. DEFAULT - Any failure of the buyer to make payment of any moneys required by this agreement within thirty (30) days after the due date for.such payment, or any acts, or the perfor- mance of any act forbidden by this agreement, or the failure to perform any act required by this agreement, may constitute a default, at the option of seller. In the case of default by buyer, seller shall retain any and all moneys received under the provisions of this agreement (whether on account of purchase money or otherwise) as compensation for buyer's use and occupancy of said premises. 15. CONFESSION OF JUDGMENT - In the event of default of payment of any sum of principal or interest herein agreed to be paid for the space of thirty (30) days after the same shall become due and payable by the terms hereof, or the breach of any other of the terms of this agreement, the whole of said principal sum, at the option of seller, shall become due and payable forthwith, anything hereinbef ore contained to the contrary....` notwithstanding. In such case of default, buyer hereby author- izes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere to appear for buyer and confess a judgment for the entire principal sum and interest remaining unpaid hereon, with 5% attorney's commission or fees, hereby waiving the right of exemption and inquisition, so far as the land herein described, and any property or building thereon may be concerned. Said seller, at seller's option, among other remedies available to seller, may proceed by Action of Ejectment on this agreement after default made as aforesaid for the recov- ery of said premises; in such case, buyer hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania, or elsewhere, to appear for buyer and confess judgment of ejectment, and authorizes the immediate issuing of a Writ of Possession and Execution (without asking leave or court) for the costs. and 5% attorney's commission or fees, waiving all stay and exemption laws. Prior to the entry of judgment by confession or-the filing of an action of ejectment, seller shall give to buyer written notice of default and seller's intention to proceed by legal action, which notice shall provide a period of thirty (30) days during which the buyer can correct the default. 16. RIGHT OF BUYER TO PAY LIENS - .S, GUIDO, LO & .SLAND Qarket street p Hill, PA .A. Notice - In addition to the aforementioned mortgage to Pennsylvania State Bank, notice of the entry of any mortgage, judgment, lien or other encumbrance affecting title to said premises received by the seller after the date of the execution of this agreement shall be given by the seller to the buyer within thirty (30) days of the recording thereof in the Cumberland County Court House. B. Delinquent Payments - In the event any mort- gage, judgment, lien. or other encumbrance affecting title to the premises existing at the date of the execution of this agreement or hereafter entered of record and default in the payment is made by the seller, then buyer shall have the right to make the delinquent payments and to receive credit for the full amount of said payments made by the buyer and to deduct the amount thereof from the required monthly payments under this agreement. Prior to exercising the rights stated in this paragraph, buyer shall give seller 48 hours notice by certified mail of his intent to do so., but this provision shall not limit buyer's right to make the delinquent payments and to claim credit therefor. 17. APPLICABLE LAW - In the event of any disagreement or misunderstanding, the terms of this agreement shall be con- strued pursuant to the laws of the Commonwealth of Pennsylvania in effect at the time of the execution hereof and as they may be amended subsequently. S, GUIDO, WFF & .SLAND Qarket Street ip Hilt, PA 18. SELLER'S RIGHT TO SEVER BUYER'S INTEREST AS A UNIT OF A CONDOMINIUM STRUCTURE - Seller, at any time during the five year period. of this agreement, may elect to file documents with the appropriate authorities to make the entire building and the curtilage described on Exhibit "A" asa condominium structure and to limit buyer's interest in the condominium to the third floor, an undefined one-third of the applicable parking area and an interest in the common elements of the building. 19. ENTIRE AGREEMENT - This document contains the entire agreement between buyer and seller; there are no represen- tations, warranties, covenants, terms or conditions, except as specifically set forth herein. . 20. TIME OF THE ESSENCE - It•is the agreement of the parties hereto that time shall be of the essence. 21. BINDING AGREEMENT - This agreement shall extend to and be legally binding upon the parties, their respective heirs, executors, administrators and assigns.. 22. WAIVER - The failure of either party to insist upon strict enforcement of any provisions of this agreement shall not constitute a waiver of the right to enforcement of that provision or of any other provision. 23. DESCRIPTIVE HEADINGS - The descriptive headings used herein are for convenience only and they are not intended to indicate all of the matter in the sections which follow them. Accordingly, they have no effect whatsoever in determining the rights or obligations of the parties. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. WITNESS: 4, (SEAL) obert G. Hartman, _j V. ATTEST: HERSHEY-PHILBIN ASSOCIATES, INC. Secretar (SEAL) President IS, GUIDO, IUFF & ?SLAND vlarket Street IP Hill, PA COMMONWEALTH OF PENNSYLVANIA) SS. COUNTY OF CUMBERLAND) I hereby certify that on this CS?i day of /? 1994; before me, a notary public in and for the above county and state, personally appeared '=/- '/'. the attorney named in the foregoing Indenture, and by virtue and in pursuance of the authority therein conferred upon him, acknowl- edged the said Indenture to be the act and deed of the said Hershey-Philbin Associates, Inc. WITNESS my hand and notarial seal the day and year afore- said. ? [,Q otary Public AS, GUIDO, HUFF & ASLAND Market Street mp Hill, PA p IAL SEgL THELMA S. MCCAUSLIN, Notary Public Camp Hill, Cumberland County MY Commission Fxplres July 3, 1996 EXHIBIT "A" ALL that certain piece or parcel of land situate in Lower Allen Township, Cumberland County, Pennsylvania, More particularly bounded and described as follows, to wit: BEGINNING at a point-in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West,.215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, north 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. GUIDO, FF & 1AND ket Street Ell, PA 13 ROBERT P. ZIEGLER RECORDER OF DEEDS CUMBERLAND COUNTY 1 COURTHOUSE SQUARE CARLISLE, PA 17013 717-240-6370 Instrument Number - 200923631 Recorded On 7/8/2009 At 12:08:25 PM * Instrument Type - ASSIGNMENT Invoice Number - 47823 User ID - RAK * Grantor - HARTMAN, JANET W * Grantee - HARTMAN, JANET W * Customer - ANDES * FEES STATE WRIT TAX $0.50 RECORDING FEES - $29.50 RECORDER OF DEEDS PARCEL CERTIFICATION $10.00 FEES COUNTY ARCHIVES FEE $2.00 ROD ARCHIVES FEE $3.00 TOTAL PAID $45.00 * Total Pages - 14 Certification Page DO NOT DETACH This page is now part of this legal document. I Certify this to be recorded in Cumberland County PA of cuy ° RECORDER O /DZDS verso * - Information denoted by an asterisk may change during the verification process and may not be reflected on this page. OOOOVE 11111111111111111111111111111 EXHIBIT D NOTICE OF DEFAULT TO: Hershey-Philbin Associates, Inc. c/o Robert C. Saidis, Esquire 26 West High Street Carlisle, PA 17013 You are hereby notified that you are in default of the Installment Agreement of Sale between yourself and Robert G. Hartman, Jr., dated 24 October 1994. Pursuant to that Agreement you were to make regular monthly installment payments of principal and interest in the amount of $1,234.80. You have failed to do that in the following ways: A. The payments due for the month of November and December of 2007 and January of 2008 were not paid until 30 March 2008. Those payments were all at least sixty (60) days late. B. The payment made for February of 2008 was not made until April of 2008. C. The payment for the month of March of 2008 was not made until May of 2008. D. The payment due for the month of April of 2008 was not made until late August 2008. E. The payments due for the months of May, June, July, August, and September of 2008 have not been made. You are hereby notified that Janet Hartman, as the successor in interest to Robert G. Hartman, Jr., has elected to treat the above failures to make timely payments as a default of the agreement and that she hereby terminates the agreement,and your rights under it. Further, you are notified that she intends to pursue her legal remedies, as set out in Paragraph 15 of the Agreement thirty (30) days after the date of this Notice. Date: 19 September 2008 'S2. ?-1'0 0 el L. A es Attorney for Janet Hartman, Seller EXHIBIT E ALL THAT CERTAIN tract or parcel of land in Lower Allen Township, Cumberland County, Pennsylvania, being a one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania, and the curtilage as more particularly described as follows: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by other lands of Hartman, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, North 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a three story office building known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. JANET W. HARTMAN, PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. HERSHEY-PHILBIN ASSOCIATES, INC. DEFENDANT NO. 08-7503 CIVIL ORDER OF COURT AND NOW, this 15th day of January, 2010, upon consideration of the Plaintiff's Motion to file Amended Complaint, IT IS HEREBY ORDERED AND DIRECTED that: 1. A Rule is issued upon the Defendant to show cause why the relief requested should not be granted; 2. The Defendant will file an answer on or before February 5, 2010; 3. If no answer to the Rule to Show cause is filed by the required date, the relief requested by Plaintiff shall be granted upon the Court's receipt of a Motion requesting Rule be made Absolute. If the Defendant files an answer to this Rule to Show Cause, the Court will determine if further Order or hearing is necessary. 4. The Prothonotary is directed to forward said Answer to this Court. By the Court, Samuel L. Andes, Esquire Attorney for Plaintiff Mark Thomas, Esquire Attorney for Defendant bas Cp " CZ rnQtt , /1/.5/!,6 ` =; l M. L. Ebert, Jr., J. d m C`J =? a, ?c JANET W. HARTMAN, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. CIVIL ACTION -LAW o HERSHEY-PHILBIN ASSOCIATES, INC.,: t-n - NO. 08-7503 Defendant :CIVIL TERM M. i ANSWER TO PLAINTIFF'S C w c '?' MOTION TO FILE AMENDED COMPLAINT w 1. Admitted. 2. Admitted. By way of further response, Plaintiff wrongfully averred that she was the owner in fee simple of the entire property. The deed on which Plaintiff relied, which was not attached to the original Complaint, only conveyed to her an undivided two-third (2/3) interest in the property in question. The remaining undivided one-third (1/3) interest was the property which was the subject matter of the Installment Agreement. (A copy of the Deed conveying an undivided 2/3 interest in the property to Plaintiff is attached hereto as Defendant's Exhibit "A".) 3. Admitted in part; denied in part. It is admitted that Plaintiff has, since the entry of judgment, taken steps to correct the record on which the Confession of Judgment was entered. It is denied that these corrections made six (6) months after the entry of judgment can validate a judgment entered on an erroneous and/or defective record. 4. Denied. Although Pa. R.C.P. 1033 permits liberal amendment of pleadings, it is denied that Pa. R.C.P. 1033 applies to this case wherein a judgment has already been entered. 5. Denied. The existence of the judgment presently recorded is prejudicial to Defendant, even if the judgment is invalid. To allow a judgment against Defendant to continue on record when that judgment was erroneously entered continues to work prejudice against Defendant. WHEREFORE, Defendant, HERSHEY-PHILBIN ASSOCIATES, INC., prays that this Honorable Court will deny Plaintiff's Motion to File Amended Complaint. NEW MATTER 6. Answers 1 through 5 are incorporated herein as if set forth at length. 7. Since Plaintiff was not a party to the Installment Agreement which contained the warrant of attorney relied upon by Plaintiff to confess judgment against the Defendant, Plaintiff was required to establish on the record that Plaintiff was the real party in interest. 8. The deed on which Plaintiff relied at the time judgment was entered by confession did not establish that she was the real party in interest. 9. Only the real party in interest may enter a confession of judgment. Fourtees Co. v. Sterling Equipment Corporation, 363 A.2d 1229 (Pa. Super. 1976). 10. The record on which the confession of judgment was entered was fatally defective and that judgment should be stricken. 11. Plaintiff's complaint states facts upon which a judgment was entered against Defendant. Those erroneous facts include more than a mere formal defect, mistake or omission. The erroneous facts on which the judgment was entered cannot support the judgment which was entered in reliance upon the validity of those facts. WHEREFORE, Defendant, HERSHEY-PHILBIN ASSOCIATES, INC., prays that this Honorable Court will deny Plaintiff s Motion to File Amended Complaint. Respectfully submitted, R. Mark Thomas, Esquire, Attorney No. 41301 101 South Market Street Mechanicsburg, PA 17055 Telephone: 717-796-2100 Attorney for Defendant CERTIFICATE OF SERVICE I, R. Mark Thomas, Esquire, hereby certify that I have served a true and correct copy of the within document on the following person by depositing a true and correct copy of the same in the U.S. Mail at Mechanicsburg, Pennsylvania, First Class Postage pre-paid, addressed to: Samuel L. Andes, Esquire P. O. Box 168 Lemoyne, PA 17043 Date: February 5, 2010 R. Mark Thomas, Esq. fide, -#!3 -23-os?tq •!? P.OEERT P. ZtEGLER R:GORDER OF DEEDS t;ulIBERLAND COUNTY-PA SEe V I'?I 3 21 THIS DEEDS. Made the Cf 'day of ? 19y` BETWEEN ROBERT G. HARTMAN, JR., of Now Cumberland, Cumberland County, Pennsylvania, herein designated as the Grantor(s), AND JANET W. HARTMAN. of New Cumberland, Cumberland County, Pennsylvania, herein designated as the Grantee(s); WITNESSETH, that the Grantors, for and in consideration of -------ONE (51.00) DOLLAR ------- ------------- lawfid money of the United States of America to the Grantors in hand well and truly paid by the Grantees, at or before the sealing and delivery of these presents, the receipt whereof is hereby acknowledged and the Grantors being therewith fully satisfied, do by these presents grant, bargain, sell and convey unto the Grantees forever, TRACT NO. 1: ALL T:;AT CERTAIN 2/3 TENANTS IN COMMON INTEREST in that tract or parcel of land and premises, situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly described as follows, to wit: BEGINNING at a point in the middle of the township road leading from Carlisle Road to Spring Lake Colony, said point being 30.11 feet west of the center line of Carlisle Road; thence by Tract No. 2 hereinafter described, South 05 degrees 17 minutes West, 210.64 feet to an iron pin; thence by lands now or formerly of Garver, South 83 degrees 16 minutes West, 200.00 feet to an iron pin; thence, still by other lands now or formerly of Garver, North 15 degrees 52 minutes West, 215.27 feet to a point in the center of the aforesaid township road; thence by the middle of said road, North, 84 degrees 39 minutes East, 278.02 feet to the point of BEGINNING. HAVING thereon erected a building known as "Park Place' Office Building and known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania. THIS TRANSFER IS WHOLLY EXEMPT FROM PENNSYLVANIA REALTY TRANSFER TAX PURSUANT TO 51102-0.3(6) PENNSYLVANIA REALTY TRANSFER TAX ACT AND REGULATIONS TRANSFER BETWEEN HUSBAND AND WIFE ca. 146 ;A4', 684 oaf Grantor sold a one-third (1/3) tenants in common interest, under Installment Sale Agreement, dated October 24, 1994, to Hershey-Philbin Associates, Inc. in which it provided that Hershey-Philbin would have the exclusive use of the third floor of the foregoing premises. TRA(`T NO. 2: ALL THAT CERTAIN tract of land situate, lying and being in Lower Allen Township, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point in the center line of the township road known as Orchard Road at the easterly line of Tract No. 1, hereinbefore dsscribed; thence bin said center line of theStategHighway L.R. 21022; thence l byetheto a point latter line, South 37 degrees 36 minutes East, 10.30 feet to a point in said center line; thence still along said center line, North a5 degrees 02 minutes East, 89.61 feet to a point on line of lands now or formerly of Ray Garver; thence by the latter, South 24 degrees 06 minutes East, 141.16 feet to a stake; thence by lands now or formerly of West Shore Driving Range, South 24 degrees 06 minutes East, 66.94 feet to a stake; thence by tM same. South 83 degrees 21 minutes West, 229.33 feet to a stake at the easterly line of Tract No. 1, aforesaid; thence by the latter, North OS degrees 17 minutes East, 210.64 feet to the place of BEGINNING. BEING the same premises which Dauphin Deposit Bank and Trust Company, by its deed dated April 19, 1994 and recorded in the office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 104, Page 361, granted and conveyed unto Robert G. Hartman, Jr., Grantor herein. TOGETHER with all and singular the buildings, improvemenu, ways, woods, wage; watercourses, rights, liberties, privileges, herediranenu and appurtenances to the same belonging or in anywise apperurining; and the reversion and reversions, remainder and remainder, renu, issues and profit thereof, and of every parr and parcel thereof,, AND also all de estate. right, rule, interest. usG possession, popery, claim and demand whauoever of the Grantors both in law and in equity; of, in and to the premises herein described and every pan and parcel thereof uldt ilia appurtenances. TO HAVE AND TO HOLD all and singular the premises herein described togedner with the heredhaments and appurtemmices unto the Grauees and to Grantees' proper use and benefit forever. M* 146' PACE 685 AND the Grantors, for themselves, their heirs, executors and administrators, do covenant, promise and agree, to and with the said Grantee heirs and assigns, by these presents, that the said Grantor(s), heirs, all and singular the heredita,ments and premises hereby granted or mentioned and intended so to be, with the appur lances, unto the said Grantee, heirs and assigns, aganst them, the said Grantor(s) and their heirs, and against all and every person and persons whomsoever lawfully claiming or to clam the same or any part thereof, by, from or under him, her, them or any of them, shall and will. SUBJECT as aforesaid, FOREVER SPECIALLY WARRANT AND DEFEND. by all references herein to any parties, persons, entities or corporations, the use of any particular gender or the plural or singular number is intended to include the appropriate gender or number as the test of the within insimme nt may require. Wherever in this instrument any party shall be designated or referred to by name or genera reference, such designation is intended to and shall have the same effect as if the words heirs, executors, administrators, personal or legal representatives, successors and assigns" had been inserted after each and every such designation. IN WITNESS WHEREOF, the Grantors have hereunto set their hands and seals, or if a corporation, it has caused these presents to be signed by its proper corporate offlcers and its corporate sea to be affixed hereto, the day and year first above written. SIGNED, SEALED and DELIVERED in the presence of or ATTESTED by- L ? COMMONWEALTH OF PENNSYLVANIA, COUNTY OF Cuurn beH(4 d : C? BE IT REMEMBERED, that on 5epkt n??ts+ Pp before me the subscriber personally appeared ROBERT G. HARTmArt, JR., known to me (or satisfactorily proven) to be the person whose name is subscribed to within deed and acknowledged that he executed the same for the purpose therein contained ! WITNESS my hand and sea( the day and year afocresaid OTARY PUBLJC 4N ir+%KS? My Com Notar 5w r Lynn T. PWN?b ry $h n1tein?..p..ry?,aneArooetondNOrlra :i Sao o.. ,: } i?'r* n ' . 80Wf 146 PACE ? -- Robert G. Hartman, Jr. 107/14/2008 3:22:33 PM CUMBERLAND COUNTY Inst.# 199627971 -Page 3 of 4 COXWONWEALTH OF PENNSYLVANIA, COUNTY OF : S.F. BE IT REiVEMBERED, that on .19 , before me the subscriber personally appeared who aclmowledged self to be the of , a Corporation, and that being authorized to do so as such corporate officer evecirted the foregoing instrument for the purposes therein contained on behalf of the corpora'". WITNESS my hand and seal the day and year aforesaid t NOTARY PUBLIC My Commission Expires: (SEAL) ki 44 N a ? o o f \NvN y ? 1( N h yw?4 w G C M c a atv. ? ? --n of Pennsylvania I SS n city of Cumbertand) S " $ o A rded in the office for the recording of Darts a a iynd far,?ytmberland CounW/? e v a a ((L` = P J?IQ V t ap y y o . Cook tnmso my hand a sql of I deY of f a ct o rt':.ta, AA this b r ?{ E u$vec` ? h o Q... < 77504 W X 146 PACE 687 07/14/2008 3:22:33 PM CUMBERLAND COUNTY Inst.# 199627971 - Page 4 of 4 FILET?-?r` i?F i)F THE' °Fr?TK.,-N0 k9Y JANET W. HARTMAN, Plaintiff vs. 2010 MAR -5 Pl 1: 40 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW cuv' i y HERSHEY-PHILBIN ASSOCIATES, ) INC., ) NO. 08-7503 CIVIL TERM Defendant PLAINTIFF'S REPLY TO DEFENDANT'S NEW MATTER AND NOW comes the above-named Plaintiff by her attorney, Samuel L. Andes, and makes the following Reply to the New Matter raised by Defendant in response to Plaintiff's Motion to file Amended Complaint: 6. No answer required. To the extent an answer is required, Plaintiff incorporates herein, by reference, the averments in her Motion to file Amended Complaint. 7. Denied as stated. Plaintiff was the real party in interest because, as the surviving widow and heir of Robert Hartman, title to the property and all of the rights with regard to the installment sale agreement passed to her by operation of law. Moreover, the averments set out in Paragraph 7 of Defendant's New Matter, even if true, do not relate to, or prohibit, the amendment of Plaintiff's Complaint. To the contrary, allowing Plaintiff to amend her Complaint will place the appropriate facts before this court to make a determination on the Defendant's petition to strike Plaintiff's judgment. 8. Denied for the reasons set forth in Paragraph 7 above, which are incorporated herein by reference. 9. The statements in Paragraph 9 constitute a conclusion of law to which no factual answer is required. To the extent that a factual answer is required, Plaintiff incorporates herein the averments set forth in her Answer to Paragraph 7 above. 10. Denied. It is denied that the record on which the judgment was confessed was fatally defective or that the judgment should be stricken. To the contrary, Plaintiff should be permitted to amend her complaint to place into the record the information necessary for this court to properly decide the Defendant's Petition to strike the judgment. The averments set forth in the Answer to Paragraph 7 above are incorporated herein by reference. 11. Admitted in part and denied in part. It is admitted that Plaintiffs proposed amended complaint states additional facts to support the judgment entered against the Defendant. It is denied, however, that any of those facts are erroneous or include more than a mere "formal defect, mistake or omission." Moreover, Defendant's disputes with the statements made in Plaintiff s amended complaint are not grounds to deny Plaintiff the right to file an amended complaint. In fact, all of the averments and claims made by Defendant in its New Matter do not address the issue of Plaintiff's right to file an amended complaint but rather go to the ultimate issue in the case which is not yet before this court. WHEREFORE, Plaintiff prays this court to grant her leave to file the amended complaint attached to her Motion so this matter can be properly determined by the court. ,? seems Samuel L. Andes Attorney for Plaintiff Supreme Court ID # 17225 525 North 121' Street P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unsworn falsification to authorities). Date: anet W. Hartman CERTIFICATE OF SERVICE I hereby certify that I served a copy of the foregoing document upon counsel for the Defendant herein by regular mail, postage prepaid, addressed as follows: R. Mark Thomas, Esquire 101 South Market Street Mechanicsburg, PA 17055 Date: 34 1c) Amy M. kins Secretary for Samuel L. Andes PRAECIPE FOR LISTING CASE FOR ARGUMENT (Must be typewritten and submitted In triplicate) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Argument Court.) CAPTION OF CASE (entire caption must be stated in full) JANET W. HARTMAN, Plaintiff vs. HERSHEY-PHILBIN ASSOCIATES, INC., Defendant 6'- //V- (List the within matter for the next 0 -K a V rj mr-, C C F ?J Z Zj co No. 08-7503 Civil Term 1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to complaint, etc.): Motion J-0 Rtrike and/or Q= Jud nt Cnr feGSion 2. Identify all counsel who will argue cases: (a) for plaintiffs: Samuel Andes, Esquire P. O. Box 168, Lemoyne, PA 17043 (Name and Address) (b) for defendants: R. Mark Thomas, Esquire (Name and Address) 101 South Market Street, Mechanicsburg, PA 17055 3. 1 will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court Date: July 7, 2010 Date: June 17, 2010 Print your name Defendant Attomey for rn rr, 'Ct _`D _?rt7 INSTRUCTIONS: 1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) before argument 2. The moving party shall file and serve their brief 12 days prior to argument. 3. The responding party shall file their brief 5 days prior to argument. 4. If argument Is continued new briefs must be filed with the COURT ADMINISTRATOR (not the Prothonotary) after the case is relisted. R. Mark Thomas, Esquire JANET W. HARTMAN, IN THE COURT OF COMMON PLEAS OF PLAINTIFF CUMBERLAND COUNTY, PENNSYLVANIA V. HERSHEY-PHILBIN ASSOCIATES, INC., DEFENDANT NO. 08-7503 CIVIL ORDER OF COURT AND NOW, this 8th day of October, 2010, the Court having determined that the deposition of Paul F. Baynum taken in the above referenced case on December 17, 2009, is required to be considered in order to properly assess the Petition to Strike or Open Judgment currently before this Court, accordingly; IT IS HEREBY ORDERED AND DIRECTED that the parties will be given until October 29, 2010, to supplement the record in this case by filing this deposition with the Prothonotary. By the Court, )k-L M. L. Ebert, Jr., J. Samuel L. Andes, Esquire Attorney for Plaintiff ? R. Mark Thomas, Esquire Attorney for Defendant bas ` ° ?? COPres,Ccd%/?? ?- CrI )RIPii', JANET W. HARTMAN, IN THE COURT OF COMMON PLEAS PLAINTIFF CUMBERLAND COUNTY, PENNSYLVANIA V . CIVIL ACTION - LAW HERSHEY-PHILBIN ASSOCIATES: INC., : NO. 08-7503 DEFENDANTS : CIVIL TERM DEPOSITION OF: PAUL P. BAYNUM TAKEN BY: PLAINTIFF BEFORE: TAMMY J. BAKER, REPORTER NOTARY PUBLIC DATE: DECEMBER 17, 2009, 1:05 P.M. PLACE: LAW OFFICES OF R. MARK THOMAS 101 SOUTH MARKET STREET MECHANICSBURG, PENNSYLVANIA (APPEARANCES: LAW OFFICE OF SAMUEL L. ANDES BY: SAMUEL L. ANDES, ESQUIRE FOR - PLAINTIFFS LAW OFFICE OF R. MARK THOMAS BY: R. MARK THOMAS, ESQUIRE FOR - DEFENDANTS RHOADS & SINON, LLP BY: MICHAEL W. WINFIELD, ESQUIRE FOR - PAUL P. BAYNUM AND ORRSTOWN BANK 2080 Linglestown Road • Suite 103 • Harrisburg, PA 17110 717.540.0220 9 Fax 717.540.0221 0 Lancaster 717.393.5101 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WITNESS NAME PAUL P. BAYNUM BY: MR. THOMAS BY: MR. ANDES EXAMINATION 3 16 EXHIBITS BAYNUM EXHIBIT NO. 1. LETTER DATED 3/25/08 2. LETTER DATED 5/13/08 3. FAX DATED 3/26/08 PRODUCED AND MARKED 6 11 22 3 0 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 STIPULATION It is hereby stipulated by and between counsel for the respective parties that reading, signing, sealing, certification and filing are hereby waived; and that all objections, except as to the form of the question, are reserved to the time of trial. PAUL P. BAYNUM, called as a witness, being duly sworn, testified as follows: MR. THOMAS: This is the matter of Janet W. Hartman versus Hershey-Philbin Associates, Inc., it's indexed at number 08 dash 7503 in the Cumberland County Court of Common Pleas. We're here today, December 17th, 2009 for the deposition of Paul Baynum. And everyone go around the table and introduce themselves and who they represent. Start with me, I'm Mark Thomas, I represent the Hershey-Philbin Associates, the Defendants in this matter. MR. ANDES: My name is Samuel Andes, I represent the plaintiff, Janet W. Hartman. MR. WINFIELD: I'm Michael Winfield of Rhoads & Sinon and I'm here representing the witness and Orrstown Bank. THE WITNESS: And I'm Paul Baynum and I work 4 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 25 for Orrstown Bank. BY MR. THOMAS: Q. Mr. Baynum, the purpose of this deposition is for me to ask you questions concerning loan applications that were made with Orrstown Bank by Scott Hershey, Robert Philbin and Hershey-Philbin Associates. I'm going to be asking you questions about what transpired. And for purposes of the deposition I would just ask that first of all you make sure you understand my question before you give an answer. It would not be unlike me to ask a question that you didn't understand, so if that happens, just ask me to repeat it and I'll make sure you do understand it. If you do understand it -- if you do answer the question, I'm going to assume that you understood the question. Now, one more thing, the court reporter is taking down verbal questions and responses, so whenever you answer a question, if you would verbalize that answer it will make it much easier on the court reporter to be able to -- A. I will. Q. -- transcribe that. A. Okay. Q. All right. Mr. Baynum, would you state your full 5 0 C] • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 name and spell your last name for the record? A. Sure. It's Paul Parker Baynum, B-A-Y-N-U-M. Q. And Mr. Baynum, where are you employed? A. Orrstown Bank. Q. And in what capacity are you employed there? A. I'm a business development officer. Vice president, business development officer and regional senior loan manager out of the Carlisle office. Q. And were you so employed during the year 2008? A. I was. Q. During the course of your employment in that capacity with Orrstown Bank, did you have any dealings with Scott Hershey and Robert Philbin together? A. I did. Q. Okay. And how did it come about that you had any dealings with them? A. They were referred to me by one of my clients to talk to them and see if we could help them out on a loan. Q. What kind of loan was that discussion about? A. They were interested in terming out a line of credit that they had at another financial institution and seeing if there was a way that we could do that. Q. So would it be fair to characterize it as a commercial loan? 6 • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Q. Okay. And would they have been required to fill out a loan application? A. We do not do formalized loan applications for commercial loans; so no. Q. All right. Who was to be the borrower of -- in this proposed loan transaction? A. The loan is to Hershey-Philbin Associates, Inc. Q. I notice on one of the documents that I have there's reference to a to be formed entity. Do you know whether or not there was an entity known as Hershey-Philbin Associates, Inc., at the time the loan application was made? A. There was an entity Hershey-Philbin Associates, Inc. The to be formed was if they were going to own the real estate under another entity. Q. I understand. A. Which often times happens. Q. And what was the amount of the loan that was requested? A. The original request was $250,000. Subsequently we received an appraisal and the loan amount was increased to $251,250. Q. And I believe you started to answer this a minute ago, what was the purpose or for what purpose were the 7 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 loan proceeds to be used? A. My understanding was it was to pay off the remaining balance under the sales agreement with the owner of the real estate and the balance was to term out a line of credit that they had at another bank. Q. And do you recall whether -- I'm looking at -- well, let me just introduce this now instead of me referring to it as a document. (Letter dated March 25, 2008, produced and marked Baynum Exhibit No. 1.) BY MR. THOMAS: Q. Mr. Baynum, I'd like you to take a look at the document that has just been marked as Baynum Exhibit No. 1. Can you identify that document? A. It's the bank's commitment letter that was issued to the borrower. Q. All right. And if you look there on the first page there's a subtitle use of loan proceeds and you had mentioned that the purpose of the loan proceeds were to refinance the existing installment sales agreement with the seller of the real estate and also to pay off a line of credit at PNC and it says and working capital. I assume it would be fair to say that a portion of the loan proceeds were to be just working capital for the business operations of Hershey-Philbin Associates, 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is that correct? A. Yes . Q. Now, did you take steps to determine the credit worthiness of Scott Hershey, Robert Philbin and Hershey-Philbin Associates? A. Yes, we did. Q. And I -- and that document that I presented to you there as Baynum Exhibit 1, is that a loan commitment letter? A. It is . Q. Tell me if I'm wrong, but I assume that you determined that they were creditworthy and therefore you issued that loan commitment letter? A. That's correct. Q. Now, that loan commitment letter, there are conditions attached to that loan commitment letter, are there not? A. Yes, there are. Q. And with respect to the collateral, what is the condition as set forth on that loan commitment letter with regard to collateral? A. That we would have a first lien on 2101 Orchard Road, Suite 3, Camp Hill, Pennsylvania. Q. And could you tell us at least from your perspective what your understanding was with regard to 9 1 2 3 4 5 6 7 8 9 10 11 12 . 13 14 15 16 17 18 19 20 21 22 23 24 25 Suite 3? A. My understanding was that there was a balance remaining under an installment sales agreement with the owner of the real estate and that upon payment of that balance due, the borrowers, Hershey-Philbin Associates, would own that unit, Suite 3, so that the bank could take a lien position against that. Q. Okay. So the intent of the bank, if I understand you correctly, was that they would be in a first lien position with regard to Suite 3 only as it was located on the real estate? A. Correct. Q. And did you have an appraisal performed with regard to Suite 3? A. We did. Q. And what was the appraised value according to the appraisal? A. $335,000. Q. And does that appraisal have a date on it? A. It does. Q. What's the date? A. As of March 5th, 2008. Q. Did you subsequently learn that there was no separate property interest known as Suite 3 concerning this particular real estate? 10 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Q. Could you tell us if -- as best you recall, how did you learn that there was no Suite 3 that was a separate property? A. My recollection is that we asked for title insurance on the property and that the title insurance issuer came back and told us that it would be -- that it was not an installment sale agreement that would have been able to give the bank a first lien position on that suite. Q. On that suite? A. Yes. Q. Who was the title insurance issuer? A. Saidis, Flower and Lindsay in Carlisle. Q. Now, just to try to clarify, was it your understanding as provided to you from Scott Hershey and Robert Philbin that they were purchasing a condominium? A. Yes. Q. And if I understood your answer correctly, what you found out from the firm that was doing the title insurance work was that there was no condominium? A. A condominium agreement had apparently not been filed was what I was told. Q. All right. Do you know whether, in fact, there was a condominium known as Suite 3 at 2101 Orchard Road 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. I don't know. Q. You still don't know? A. I still -- I don't know. Q. Okay. Let me back up here. Are you telling me that you don't know if there was a Suite 3 condominium unit at any time? A. I know there was a Suite 3. Whether or not it was officially a condominium unit, I am not aware one way or the other. Q. Okay. Well, what happened with regard to the loan commitment when you were advised that the agreement did not provide for the sale of a condominium unit? A. The original approach was that there would be a true condominium agreement put into place and that if that did, in fact, occur before the expiration of the commitment letter, we would continue with our commitment. If that could not be reached and the bank could not get a lien, I believe first lien against that unit, that the loan would not go through. (Letter dated May 13, 2008, produced and marked Baynum Exhibit No. 2.) BY MR. THOMAS: Q. Before you take a look at Exhibit No. 2, let me 12 1 • 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 0 25 just cross out that line. The loan commitment letter dated March 25, 2008 which we had previously discussed as Baynum Exhibit No. 1, was that loan commitment of that date subsequently canceled? A. It was modified. Q. Modified? A. Yes. Q. Take a look at Baynum Exhibit No. 2. Can you identify that? A. It's the modified commitment letter, modification of the earlier commitment letter. Q. Okay. What's the date on that modified commitment letter? A. May 13, 2008. Q. Again, would you take a look at the collateral that's identified which is a condition for the modified commitment letter? A. Yes. Q. What does it state there as far as collateral? A. Satisfactory lien on 2101 Orchard Road, Camp Hill, Pennsylvania, indicating an overall loan-to-value of no more than 75 percent. MR. ANDES: Where are you reading from, which paragraph? Okay. I see. I'm sorry. 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE WITNESS: This mortgage will be transferred to Suite 3 upon completion of a condominium agreement. BY MR. THOMAS: Q. Okay. Now, the language there says a satisfactory lien on 2101 Orchard Road, Camp Hill. What would the bank have considered to have been a satisfactory lien on 2101 Orchard Road, Camp Hill? A. If I recall correctly -- and I think I do -- the thought was that we would take a lien against the entire property, indicating that all other bank liens that would be superior to ours, plus our lien, would lead to a loan value not to exceed 75 percent and that upon completion of the condominium-ization of that property, we would then move our mortgage to Suite 3 only. Q. Okay. All right. Now, in order for you to obtain a satisfactory lien against the entire property, who would have to -- I'm assuming that lien would be in the form of a mortgage? A. Yes. Q. Who would have to execute the mortgage? A. All valid owners of that property. Q. And were the borrowers ever able to provide you with the satisfactory lien that you referred to in your commitment letter? 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. No. Q. Did the bank perform an appraisal on the real property, itself, at 2101 Orchard Road, Camp Hill? A. No. Q. Would the bank have accepted a lien on the undivided one-third interest in the property which the borrowers would have acquired had they been provided the loan proceeds? Assuming that the borrowers -- assuming that the borrowers borrowed the money from the bank and they were only able to purchase a one-third interest -- an undivided one-third interest in the real property, would the bank have accepted a lien just as to that undivided one-third interest as collateral for the loan? MR. WINFIELD: I'm going to offer an objection that it asks for speculation as to what the bank may or may not have done under circumstances not present here. With that objection on the record, you can go ahead and answer, if you can. THE WITNESS: I guess I'm not exactly sure what you mean by an undivided one-third interest. BY MR. THOMAS: Q. Well, the borrowers sought to acquire a one-third ownership interest in the entire property. Had they had 15 1 2 3 4 5 6 7 8 9 10 11 12 • 13 14 15 16 17 18 19 20 21 22 23 24 • 25 a one-third -- undivided one-third ownership interest in the property, would that have been a property that the bank would have considered putting a lien on with regard to satisfying the collateral requirement? A. Would have considered, yes. However, without knowing the position of the intervening liens from anybody else that may have had mortgages against that property, we would have needed to be in a proper loan-to-value when aggregating all of those mortgages for us to be able to do that. Q. Did anyone, particularly the borrowers, ever try to provide you with information for you to make that determination? A. No. Q. The loan commitment letter dated May 13, 2008, was that loan commitment letter at any time canceled by the bank? A. It had an expiration date under which it just expired. Q. And that expiration date would have been based upon the number of days from the date of the loan commitment letter? A. That's correct. Q. What would have been the number of days? A. Sixty days. I'm sorry, 30 days. 16 1 ' 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. After the loan commitment letter expired, did the borrowers ever again attempt to renegotiate a loan with Orrstown Bank for the same purposes? A. No. MR. THOMAS: That's all I have. MR. ANDES: I have a couple questions. Q. Do you have a copy of the appraisal of the property here? A. I do. Q. I take it you've looked at the appraisal, it identifies -- first of all it's by George C. Clouser and identifies the unit as a third floor condominium unit. Have you ever seen documents in any written form that indicate that the interest owned by Hershey-Philbin, the corporation, or either of these gentlemen, were, in fact, a condominium? A. Are you asking me if I saw a condominium agreement? Q. Yeah, any document, a condominium agreement or plans or anything else that would indicate it was a condominium? A. As I'm sitting here now I don't recall that, no. Q. Did you ask anyone if it was a condominium or did someone volunteer that information to you, that it was a 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 condominium, or did you just conclude it was? A. Well, I wouldn't have just concluded it was. I'm sure that the borrowers told me that upon paying the balance that they owed under the agreement that they would have a separate unit. Q. Okay. And you took that to mean a condominium unit; a separate unit would have to be a condominium unit, that's what you thought? A. I did. Q. Did you tell anyone at Clouser's office that it was a condominium? A. Well, I don't have direct contact with the appraiser ever. Q. Okay. Stacey Beiler probably would have? A. I'm sure in that appraisal there's a copy of her engagement letter that would state that. Q. I'll let you look for it. Maybe you'll know where it's at. If it's not in the appraisal perhaps it's in your file? A. It wouldn't be in my file typically, no, and I'm not seeing it in the appraisal. I don't see it here. Q. Okay. You said that at one point -- at some point you learned that there was no separate property. Do you know when that was? You indicated that was when the title insurance issuer, Saidis, Flower and Lindsay 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 reported that to you, but can you give me a date, an approximate date? A. I can't. Q. Would you have received that notification in writing? Would you have received a title binder or letter or anything of the sort? A. I have a preliminary title binder here dated 3/25/08. Q. Can I take a look at that? A. You bet. Q. Thank you. This simply identifies the property as 2101 Orchard Road, Camp Hill, Lower Allen Township, Cumberland County. It does not identify it as a portion of that property or a unit of that property, would you agree? I'm looking at the third page. A. It appears to be that way, yes. Q. And if you'll turn to the next page, I think it's the next page, it indicates the conditions that have to be satisfied and one of those is a deed and what does it state in that paragraph? A. Document satisfactory to us creating the interest in the land and the mortgage to be insured must be executed, delivered and recorded. A, deed from Janet W. Hartman, single person, to Hershey-Philbin. B, mortgage to be properly executed by Hershey-Philbin in favor of 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Orrstown Bank to secure the proposed loan in the amount of 250,000. Q. Now if you turn back to the preceding page there is, I believe, a legal description of the property? Does that mention anything about a condominium or a unit or one-third interest? A. Not that I see. Q. But when you initially undertook this application, it was from the information -- from the information you had it was your understanding -- strike that. Was it your understanding that they owned the entire building or something less than the entire building? A. Something less. Q. Okay. And your understanding was that it was a condominium that they owned? A. It was. Q. Okay. Could we have a copy of that, would it be possible? A. Yes. Q. We will identify it when we get it as Baynum No. 3 if that is satisfactory. After the second commitment letter, did you receive any other communications from a title company or 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a title agency regarding title insurance? A. I believe I did. Q. And do you have a copy of that? A. It was on the phone, I believe. Q. okay. And do you know about when that was relative to your commitment letter that was dated May 13? I assume it was after that? A. I don't know if it was after or before. Q. And do you remember the substance of that communication? A. The substance was that we were not going to be able to have a valid first lien on the property that we thought we would have a valid first lien on. Q. And do you remember who that communication was f rom? A. I believe it was Bob Saidis. Q. And was he telling you that in regard to the first commitment letter which was to have a first lien on their one-third interest or this Unit 3 or was it in connection with the second concept, which is that you would have a lien on the entire building? A. I'm pretty... Q. I understand. A. My understanding -- my memory is it was the first. 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. After the second commitment letter, did you receive any other communication indicating that title insurance could not be or would not be issued? A. I had communication, not written. Q. And from whom was that? A. Again I believe it was Bob Saidis. Q. And what was the substance of that communication? A. That there was no condominium agreement in place and that unless one were put into place we would not have a valid lien position. Q. Okay. And that's the last you heard then regarding the second commitment letter? A. Again, I don't remember if that conversation occurred prior to or after. There was only a minor change on the second commitment letter of amending the dollar amount. He would have begun the process of getting title insurance prior to that. Q. Well, the second commitment letter had a minor change to the collar amount, but it had significant changes to the collateral, is that correct? A. Yes. Q. Because it would have required people other than Hershey, Philbin and their corporation to sign a document and, in fact, give you a security interest or a mortgage in their property? 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Q. Did you ever hear from the other owners? A. No. Q. Anyone on their behalf? A. Not that I recall. Q. And you don't recall, except possibly the phone call from Bob Saidis or one of the phone calls, you don't recall receiving any further communication in response to commitment letter No. 2? A. I do not. Q. It just expired? A. Yes. Q. Okay. MR. ANDES: That's all the questions I have. Thank you very much. MR. THOMAS: I have no follow-up questions. (Fax dated March 26, 2008, produced and marked Baynum Exhibit No. 3.) (Whereupon, the deposition was concluded at 1:35 p.m.) 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 I 25 COUNTY OF DAUPHIN SS COMMONWEALTH OF PENNSYLVANIA : I, Tammy J. Baker, a Notary Public, authorized to administer oaths within and for the Commonwealth of Pennsylvania, do hereby certify that the foregoing is the testimony of PAUL P. BAYNUM. I further certify that before the taking of said deposition, the witness was duly sworn; that the questions and answers were taken down stenographically by the said Reporter-Notary Public, and afterwards reduced to typewriting under the direction of the said Reporter. I further certify that the said deposition was taken at the time and place specified in the caption hereof. I further certify that I am not a relative or employee or attorney or counsel to any of the parties, or a relative or employee of such attorney or counsel, or financially interested directly or indirectly in this action. I further certify the said deposition constitutes a true record of the testimony given by the said witness. IN WITNESS WHEREOF, I have hereunto set my hand this 30th day of December, 2009. / A/ !ONY MTH OF PENNSYLVANIA Noterial - Vuub _____ J. Baker, NotryPublic Tammy ker,Reporter Fairview Twp., York County N O t a r 1 C Commission Exaln» Nov. 7l, 2012 1 r ? ? t 1 r? Multi-Page $250,000 - creditworthy PAUL P. BAYNUM $250,000[11 6:21 $251,250[l] 6:23 $335,000 [1] 9:18 & [2] 1:23 3:23 -0- 08 [11 3:13 08-7503 [1l 1:6 -1- 1 [s] 2:14 7:10 7:14 8:8 12:4 101 [1] 1:14 11 [1l 2:15 13 [41 11:22 12:15 15:15 20:7 16 [1] 2:5 17 [1] 1:12 17th [1l 3:14 1:05 [1l 1:12 1:35 [1l 22:20 -2- 2[51 2:15 11:23 11:25 12:9 22:9 2008 [s] 5:9 7:9 9:22 11:22 12:2 12:15 15:15 22:17 2009 [3] 1:12 3:15 23:23 2101 ul 8:22 10:25 12:21 13:6 13:8 14:3 18:12 22 [1] 2:16 25 [2] 7:9 12:2 250,000 [1] 19:2 26 [11 22:17 -3- 3 [17] 2:4 2:16 8:23 9:1 9:6 9:10 9:14 9:24 10:3 10:25 11:6 11:8 13:2 13:15 19:23 20:19 22:18 3/25/08 [2] 2:14 18:8 3/26/08 [1] 2:16 30 [1l 15:25 30th [1] 23:23 -5- 5/13/08 [1] 2:15 5th [1] 9:22 -6- [11 2:14 -7- 75 [21 12:23 13:13 7503 [113:13 -A- able [6] 4:21 10:9 13:23 14:11 15:10 20:12 accepted [2] 14:5 14:13 according [1] 9:16 acquire [1] 14:24 acquired [1l 14:7 ACTION [1l 1:4 action [1l 23:19 administer [11 23:4 advised [1l 11:12 afterwards [1l 23:10 Again [31 12:16 21:6 21:13 again [1] 16:2 against [s] 9:7 11:20 13:10 13:17 15:7 agency [1l 20:1 aggregating [1l 15:9 ago [1l 6:25 agree [1l 18:15 agreement [121 7:3 7:20 9:3 10:8 10:22 11:12 11:15 13:3 16:19 16:20 17:4 21:8 ahead [1l 14:20 Allen [1] 18:12 amending [11 21:15 amount [s] 6:19 6:22 19:1 21:16 21:19 ANDES [sl 1:17 1:18 2:5 3:20 12:24 16:6 16:7 22:14 Andes [1l 3:20 answer [7] 4:10 4:14 4:19 4:20 6:24 10:19 14:20 answers [1] 23:9 APPEARANCES [1] 1:16 application [31 6:3 6:13 19:9 applications [21 4:4 6:4 appraisal [1o] 6:22 9:13 9:17 9:19 14:2 16:8 16:11 17:15 17:18 17:21 appraised [1l 9:16 appraiser [1] 17:13 approach [1] 11:14 approximate [1l 18:2 asks [1l 14:16 ASSOCIATES [1] 1:6 Associates [91 3:12 3:19 4:6 6:8 6:12 6:14 7:25 8:5 9:5 assume [41 4:15 7:23 8:11 20:7 Assuming [1l 14:9 assuming [21 13:18 14:9 attached [1] 8:16 attempt [1] 16:2 attorney [21 23:16 23:17 authorized [1] 23:3 aware [11 11:9 -B- B [1] 18:24 B-A-Y-N-U-M [1] 5:2 BAKER [1] 1:10 Baker [21 23:3 23:25 balance [s] 7:3 7:4 9:2 9:5 17:4 BANK [1l 1:25 Bank U] 3:24 4:1 4:5 5:4 5:12 16:3 19:1 bank [14] 7:5 9:6 9:8 10:9 11:19 13:7 13:11 14:2 14:5 14:10 14:13 14:17 15:3 15:17 bank's [1l 7:15 based [11 15:20 BAYNUM [61 1:8 1:25 2:3 2:13 3:8 23:6 Baynum [1s] 3:15 3:25 4:3 4:25 5:2 5:3 7:10 7:12 7:13 8:8 11:23 12:3 12:9 19:22 22:18 begun [1] 21:16 behalf [1l 22:4 Beiler [1] 17:14 best [1] 10:2 bet [1l 18:10 between [11 3:2 binder [2] 18:5 18:7 Bob [3] 20:16 21:6 22:7 borrowed [1] 14:10 borrower [21 6:6 7:16 borrowers [91 9:5 13:23 14:7 14:9 14:10 14:24 15:11 16:2 17:3 building [3] 19:13 19:14 20:21 business [3l 5:6 5:7 7:25 -C- C [1l 16:12 calls Ill 22:7 Camp Ul 8:23 11:1 12:21 13:6 13:8 14:3 18:12 canceled [21 12:5 15:16 capacity [2] 5:5 5:12 capital [2] 7:22 7:24 caption [1] 23:14 Carlisle [21 5:8 10:14 certification [1] 3:4 certify [sl 23:5 23:7 23:13 23:15 23:20 change [2] 21:15 21:19 changes [1] 21:20 characterize [1] 5:24 circumstances [1] 14:17 CIVIL [2] 1:4 1:7 clarify [11 10:15 clients [11 5:17 Clouser [1] 16:12 Clouser's [1l 17:10 collar [1] 21:19 collateral Ul 8:19 8:21 12:16 12:20 14:14 15:4 21:20 commercial [2] 5:25 6:5 commitment [28] 7:15 8:8 8:13 8:15 8:16 8:23 11:12 11:17 11:18 12:2 12:4 12:11 12:12 12:14 12:18 13:25 15:15 15:16 15:22 16:1 19:24 20:6 20:18 21:1 21:12 21:15 21:18 22:9 COMMON [1] 1:1 Common [11 3:14 COMMONWEALTH [11 23:2 Commonwealth [1] 23:4 communication [6] 20:10 20:14 21:2 21:4 21:7 22:8 communications [1] 19:25 company [1] 19:25 completion [2] 13:2 13:14 concept [1] 20:20 concerning [21 4:4 9:24 conclude [11 17:1 concluded [21 17:2 22:19 condition [21 8:20 12:17 conditions [2] 8:16 18:18 condominium [22] 10:17 10:21 10:22 10:25 11:6 11:9 11:13 11:15 13:2 16:13 16:17 16:18 16:20 16:22 16:24 17:1 17:6 17:7 17:11 19:5 19:17 21:8 condominium-ization [11 13:14 connection [1] 20:20 considered [3] 13:7 15:3 15:5 Constitutes [1] 23:20 contact [11 17:12 continue [1] 11:17 conversation [1] 21:13 Copy [41 16:8 17:15 19:19 20:3 corporation [21 16:16 21:23 Correct [1] 9:12 correct [4] 8:1 8:14 15:23 21:20 Correctly [3] 9:9 10:19 13:9 counsel [3] 3:2 23:16 23:17 COUNTY [21 1:2 23:1 County [2] 3:13 18:13 couple [11 16:6 course [1] 5:11 COURT [1] 1:1 Court [1] 3:14 court [214:17 4:20 creating [11 18:21 credit [4] 5:22 7:5 7:22 8:3 creditworthy [1] 8:12 Index Page 1 HUGHES, ALBRIGHT, FOLTZ & NATALE 717-540-0220/717-393-5101 cross - mean PAUL P. BAYNUM Multi-Page 1M cross Ill 12:1 CUMBERLAND [1l 1:2 Cumberland [2] 3:13 18:13 -D- dash [11 3:13 DATE [1l 1:12 date [9] 9:19 9:21 12:4 12:13 15:18 15:20 15:21 18:1 18:2 DATED [3] 2:14 2:15 2:16 dated [7] 7:9 11:22 12:2 15:15 18:7 20:6 22:17 DAUPHIN [11 23:1 days [41 15:21 15:24 15:25 15:25 dealings [21 5:12 5:16 DECEMBER [1l 1:12 December [21 3:14 23:23 deed [2] 18:19 18:23 DEFENDANTS [2] 1:7 1:22 Defendants [1] 3:19 delivered [1l 18:23 DEPOSITION [1] 1:8 deposition [71 3:15 4:3 4:8 22:19 23:8 23:13 23:20 description [1l 19:4 determination [11 15:13 determine [11 8:3 determined [1] 8:12 development [21 5:6 5:7 direct [11 17:12 direction [1] 23:11 directly [11 23:18 discussed Ill 12:3 discussion [1l 5:20 Document [11 18:21 document [61 7:8 7:13 7:14 8:7 16:20 21:24 documents [21 6:9 16:14 dollar [1l 21:16 done [1l 14:17 down [21 4:18 23:9 due [11 9:5 duly [21 3:9 23:8 During [11 5:11 during [1l 5:9 -E- easier [11 4:20 either 111 16:16 employed [3] 5:3 5:5 5:9 employee [2] 23:16 23:17 employment [1l 5:11 engagement [1] 17:16 entire [6] 13:10 13:17 14:25 19:13 19:13 20:21 entity [41 6:10 6:11 6:14 6:16 ESQUIRE [31 1:18 1:21 1:24 estate [6] 6:16 7:4 7:21 9:4 9:11 9:25 exactly [11 14:21 EXAMINATION [1] 2:2 exceed [11 13:13 except [2] 3:5 22:6 execute [11 13:21 executed [21 18:23 18:25 EXHIBIT [11 2:13 Exhibit [s] 7:10 7:13 8:8 11:23 11:25 12:3 12:9 22:18 EXHIBITS [11 2:12 existing [11 7:20 expiration [3] 11:16 15:18 15:20 expired [3] 15:19 16:1 22:11 -F- fact [4] 10:24 11:16 16:17 21:24 fair [21 5:24 7:23 far [1] 12:20 favor [11 18:25 FAX Ill 2:16 Fax [11 22:17 file [2] 17:19 17:20 filed [1] 10:23 filing [11 3:4 fill [11 6:2 financial [1l 5:22 financially [11 23:18 firm [11 10:20 first [1214:9 7:17 8:22 9:9 10:9 11:20 16:12 20:12 20:13 20:18 20:18 20:25 floor [1] 16:13 Flower [2] 10:14 17:25 follow-up [1] 22:16 follows [11 3:9 foregoing [1l 23:5 form [3] 3:5 13:19 16:14 formalized [1l 6:4 formed [2] 6:10 6:15 forth [1] 8:20 found [11 10:20 full [1] 4:25 -G- gentlemen [11 16:16 George [1] 16:12 given [1l 23:21 guess [1] 14:21 -H- hand [1123:22 HARTMAN [?] 1:1 Hartman [31 3:12 3:21 18:24 hear[t] 22:2 heard [1l 21:11 help [1l 5:18 hereby [31 3:2 3:4 23:5 hereof [11 23:14 hereunto [1] 23:22 Hershey [s] 4:5 5:13 8:4 10:16 21:23 HERSHEY-PHH.BIN [11 1:5 Hershey-Philbin [121 3:12 3:18 4:6 6:8 6:12 6:14 7:25 8:5 9:5 16:15 18:24 18:25 Hill [71 8:23 11:1 12:22 13:6 13:8 14:3 18:12 -I- ide-itified [1] 12:17 identifies [31 16:12 16:13 18:11 identify [41 7:14 12:10 18:13 19:22 INC [11 1:6 Inc [4] 3:12 6:8 6:12 6:15 increased [1] 6:23 indexed [11 3:13 indicate [21 16:15 16:21 indicated [1] 17:24 indicates [1] 18:18 indicating [31 12:22 13:11 21:2 indirectly [11 23:18 information [4] 15:12 16:25 19:9 19:10 installment [31 7:20 9:3 10:8 instead [1] 7:7 institution [1] 5:22 insurance [s] 10:6 10:6 10:13 10:21 17:25 20:1 21:3 21:17 insured [1l 18:22 intent [11 9:8 interest [131 9:24 14:6 14:11 14:12 14:14 14:22 14:25 15:1 16:15 18:21 19:6 20:19 21:24 interested [21 5:21 23:18 intervening [1] 15:6 introduce [21 3:17 7:7 issued [31 7:15 8:13 21:3 issuer [3] 10:7 10:13 17:25 itself [1114:3 -J- J [3] 1:10 23:3 23:25 JANET Janet [313:11 3:21 18:23 -K- kind [1] 5:20 knowing [1l 15:6 known [3] 6:11 9:24 10:25 -L- L [21 1:17 1:18 land [1l 18:22 language [1] 13:5 last [2] 5:1 21:11 LAW [4] 1:4 1:13 1:17 1:20 lead [1l 13:12 learn [2] 9:23 10:3 learned Ill 17:23 least [1] 8:24 legal [1] 19:4 less [2] 19:13 19:15 LETTER [21 2:14 2:15 Letter [2] 7:9 11:22 JICV er [2r] 8:9 8:13 8:16 8:20 12:2 12:11 12:14 12:18 15:15 15:16 16:1 17:16 19:24 20:6 21:1 21:12 21:18 22:9 lien [22] 8:22 9:9 10:9 11:20 12:21 13:8 13:10 13:17 13:18 14:5 14:13 20:12 20:13 20:21 21:10 liens [2] 13:11 Lindsay [21 17:25 line [41 5:21 7:21 12:1 LLP [1] 1:23 loan [34] 4:4 5:19 5:20 6:3 6:4 6:8 6:12 6:22 7:1 7:19 7:24 8:13 8:15 8:20 11:12 12:2 12:4 14:8 14:14 15:16 15:21 16:3 19:1 loan-to-value 12:22 15:9 loans Ill located [11 look [7] 7:12 11:25 12:9 17:17 18:9 looked [1] looking [21 18:15 Lower [11 7:15 8:15 11:17 12:12 13:25 15:22 18:6 20:18 21:15 9:7 11:20 13:6 13:12 13:24 15:3 20:18 15:6 10:14 7:5 5:8 5:25 6:7 6:19 7:18 8:8 8:16 11:21 13:13 15:15 16:1 6:5 9:10 7:17 12:16 16:11 7:6 18:12 _M_ Manager [1] 5:8 March [4] 7:9 9:22 12:2 22:17 MARK [3] 1:13 1:20 1:21 Mark 111 3:18 MARKED [1] 2:13 marked [41 7:10 7:13 11:23 22:18 MARKET [11 1:14 matter [2] 3:11 3:19 May [4] 11:22 12:15 15:15 20:6 may [3] 14:17 14:17 15:7 mean [2] 14:22 Index Page 2 HUGHES, ALBRIGHT. FOLTZ & NATALE 717-540-0220/717-393-5101 Multi-Page TM MECHANICSBURG -sign PAUL P. BAYNUM 17:6 MECHANICSBURG [1] 1:15 memory [1] 20:24 mention [11 19:5 mentioned [I] 7:19 MICHAEL [i1 1:24 Michael [i] 3:22 minor [21 21:14 21:18 minute [l] 6:24 modification p i 12:11 Modified [11 12:7 modified [41 12:6 12:11 12:13 12:17 money [11 14:10 mortgage [71 13:1 13:15 13:19 13:21 18:22 18:24 21:25 mortgages [21 15:7 15:9 move [i] 13:15 must p1 18:22 NAME[ii 2:2 name [31 3:20 5:1 5:1 needed Ill 15:8 next [21 18:17 18:18 NOTARY [i] 1:11 Notary [11 23:3 notice [1] 6:9 notification [1 118-4 NOW [71 4:17 8:3 8:15 10:15 13:5 13:16 19:3 now [21 7:7 16:23 number [3] 3:13 15:21 15:24 -O- oaths [1] 23:4 objection [21 14:16 14:19 objections [11 3:5 obtain [11 13:17 occur [11 11:16 occurred [il 21:14 Off [2] 7:2 7:21 offer [i] 14:15 OFFICE [21 1:17 1:20 office[2] 5:8 17:10 officer [2] 5:6 5:7 OFFICES [i] 1:13 officially [i1 11:9 often Ill 6:18 one [sl 4:17 5:17 6:9 11:9 17:22 18:19 21:9 22:7 one-third pol 14:6 14:11 14:12 14:14 14:22 14:24 15:1 15:1 19:6 20:19 operations Ill 7:25 Orchard [-/] 8:22 10:25 12:21 13:6 13:8 14:3 18:12 order [i 113:16 original [2] 6:21 11:14 ORRSTOWN [tl 1:25 OrrstOWn [7] 3:24 4:1 4:5 5:4 5:12 16:3 19:1 ours Ill 13:12 overall [i] 12:22 owed Ill 17:4 own [2] 6:15 9:6 owned [31 16:15 19:12 19:17 Owner [21 7:4 9:4 Owners [2] 13:22 22:2 ownership [2] 14:25 15:1 -P- P [s] 1:8 1:25 2:3 3:8 23:6 P.M [i] 1:12 p.m [i] 22:20 page [51 7:18 18:15 18:17 18:18 19:3 paragraph [2] 12:25 18:20 Parker [i1 5:2 particular [1] 9:25 particularly [i 1 15:11 parties [2] 3:3 23:16 PAUL [51 1:8 1:25 2:3 3:8 23:6 Paul [3] 3:15 3:25 5:2 Pay [2] 7:2 7:21 paying Ill 17:3 payment [1] 9:4 PENNSYLVANIA [3] 1:2 1:15 23:2 Pennsylvania [3] 8:23 12:22 23:5 people [i1 21:22 percent [21 12:23 13:13 perform [i] 14:2 performed Ill 9:13 perhaps [i1 17:18 person Ill 18:24 perspective Ill 8:25 Philbin [s] 4:6 5:13 8:4 10:17 21:23 phone [3] 20:4 22:6 22:7 PLACE pi 1:13 place [41 11:15 21:8 21:9 23:14 PLAINTIFF [21 1:2 1:9 plaintiff [1] 3:21 PLAINTIFFS [i] 1:19 plans [i1 16:21 PLEAS [i] 1:1 Pleas [i] 3:14 plus [i1 13:12 PNC [i] 7:22 point [2] 17:22 17:23 portion [2] 7:23 18:13 position [s] 9:7 9:10 10:9 15:6 21:10 possible [i] 19:20 possibly [i] 22:6 preceding [i1 19:3 preliminary [i ] 18:7 present Ill 14:18 presented [1] 8:7 president [i] 5:7 pretty [1] 20:22 previously Ill 12:3 proceeds [s] 7:1 7:18 7:19 7:24 14:8 process [il 21:16 PRODUCED [i1 2:13 produced [3] 7:9 11:22 22:17 proper pi 15:8 properly [i] 18:25 property [22] 9:24 10:4 10:6 13:11 13:14 13:17 13:22 14:3 14:6 14:12 14:25 15:2 15:2 15:8 16:9 17:23 18:11 18:14 18:14 19:4 20:12 21:25 proposed [21 6:7 19:1 provide [31 11:13 13:23 15:12 provided [21 10:16 14:7 PUBLIC [i] 1:11 Public [21 23:3 23:10 purchase [i1 14:11 purchasing [t] 10:17 purpose [4] 4:3 6:25 6:25 7:19 purposes [21 4:8 16:3 Put [21 11:15 21:9 putting [1] 15:3 _Q_ questions [71 4:4 4:7 4:18 16:6 22:14 22:16 23:9 -R- R[3] 1:13 1:20 1:21 reached Ill 11:19 reading [2] 3:3 12:24 real [8] 6:16 7:4 7:21 9:4 9:11 9:25 14:2 14:12 receive [21 19:25 21:2 received [31 6:22 18:4 18:5 receiving [11 22:8 recollection Ill 10:5 record [3] 5:1 14:19 23:21 recorded [i1 18:23 reduced [i] 23:11 reference [i] 6:10 referred [21 5:17 13:24 referring [1] 7:8 refinance Ill 7:20 regard [71 8:21 8:25 9:10 9:14 11:11 15:3 20:17 regarding [21 20:1 21:12 regional [i1 5:7 relative [3] 20:6 23:15 23:17 remaining [21 7:3 9:3 remember [3] 20:9 20:14 21:13 renegotiate [i1 16:2 repeat [i1 4:12 reported Ill 18:1 REPORTER[ i] 1:10 Reporter [2] 23:12 23:25 reporter [2] 4:17 4:20 Reporter-Notary [i] 23:10 represent [3] 3:17 3:18 3:21 representing [1] 3:23 request Ill 6:21 requested [i] 6:20 required [21 6:2 21:22 requirement Ill 15:4 reserved [i1 3:6 respect [i] 8:19 respective [i] 3:3 response [1] 22:9 responses [i] 4:18 RHOADS [1] 1:23 Rhoads Ill 3:23 right [s] 4:25 6:6 7:17 10:24 13:16 Road [718:23 10:25 12:21 13:6 13:8 14:3 18:12 Robert [41 4:6 5:13 8:4 10:17 -S- Saidis [51 10:14 17:25 20:16 21:6 22:7 sale [21 10:8 11:13 sales [3] 7:3 7:20 9:3 SAMUEL [21 1:17 1:18 Samuel Ill 3:20 Satisfactory [i] 12:21 satisfactory [6] 13:6 13:8 13:17 13:24 18:21 19:23 satisfied [i1 18:19 satisfying [i] 15:4 saw [i] 16:18 says [2] 7:22 13:5 Scott [4] 4:5 5:13 8:4 10:16 sealing [i] 3:4 second [61 19:24 20:20 21:1 21:12 21:15 21:18 secure [i] 19:1 security [i] 21:24 see [41 5:18 12:25 17:21 19:7 Seeing [2] 5:23 17:21 seller [i] 7:21 senior [i] 5:8 separate [s] 9:24 10:4 17:5 17:7 17:23 set [2] 8:20 23:22 Sign [i] 21:23 Index Page 3 HUGHES, ALBRIGHT. FOLTZ & NATALE 717-540-0220/717-393-5101 significant - year PAUL P. BAYNUM Multi-Page TM significant [11 21:19 signing [t1 3:3 simply [11 18:11 single [t1 18:24 SINON [11 1:23 Sinon [11 3:23 sitting [1] 16:23 Sixty [11 15:25 someone [11 16:25 sorry [2112:25 15:25 sort [1] 18:6 sought [l] 14:24 SOUTH [11 1:14 specified [11 23:14 speculation [t1 14:16 spell [11 5:1 SS [l1 23:1 Stacey [1] 17:14 Start [11 3:17 started [11 6:24 state [4] 4:25 12:20 17:16 18:20 stenographically [11 23:9 steps [118:3 Still [21 11:3 11:4 stipulated [t1 3:2 STIPULATION [11 3:1 STREET [1] 1:14 strike [l1 19:10 Subsequently [11 6:21 subsequently [21 testified [11 3:9 testimony :'1 23:6 23:21 Thank (21 18:11 22:15 themselves [t1 3:17 therefore [1] 8:12 third [2] 16:13 18:15 THOMAS [12] 1:13 1:20 1:21 2:4 3:11 4:2 7:11 11:24 13:4 14:23 16:5 22:16 Thomas [1] 3:18 thought [31 13:10 17:8 20:13 through [1] 11:21 times [11 6:18 title [12] 10:5 10:6 10:13 10:20 17:25 18:5 18:7 19:25 20:1 20:1 21:3 21:17 today [11 3:14 together [11 5:13 took [11 17:6 Township [1] 18:12 transaction [1] 6:7 transcribe [11 4:23 transferred [1) 13:2 transpired [t1 4:7 trial [t1 3:6 true [21 11:15 23:21 try [21 10:15 15:11 turn [21 18:17 19:3 typewriting [t1 23:11 typically [11 17:20 -V- V [t1 1:3 valid [4113:22 20:12 20:13 21:10 value [21 9:16 13:13 verbal [11 4:18 verbalize [t1 4:19 versus [11 3:12 Vice [t1 5:6 volunteer [11 16:25 -w- 9:23 12:4 substance [31 20:9 20:11 21:7 subtitle [11 7:18 such [11 23:17 Suite (121 8:23 9:1 9:6 9:10 9:14 9:24 10:3 10:25 11:6 11:8 13:2 13:15 suite [21 10:10 10:11 superior [t1 13:12 sworn [21 3:9 23:8 I -T- table [113:16 taking [21 4:18 23:7 TAMMY [t1 1:10 Tammy 121 23:3 23:25 telling [21 11:5 20:17 TERM [t1 1:7 term [t1 7:4 terming [1] 5:21 -U- under [71 6:16 7:3 9:3 14:17 15:18 17:4 23:11 understand [-i1 4:9 4:11 4:13 4:14 6:17 9:8 20:23 understood [2] 4:15 10:19 undertook [1] 19:8 undivided [s1 14:6 14:12 14:13 14:22 15:1 Unit [1] 20:19 unit [1319:6 11:7 11:9 11:13 11:20 16:13 16:13 17:5 17:7 17:7 17:8 18:14 19:5 unless [11 21:9 unlike [11 4:11 up [11 11:5 used [11 7:1 W [5] 1:1 1:24 3:11 3:21 18:23 waived [11 3:4 WHEREOF [1123:22 WINFIELD [311:24 3:22 14:15 Winfield [t1 3:22 within [t] 23:4 without [l1 15:5 WITNESS [51 2:1 3:25 13:1 14:21 23:22 witness [4] 3:8 3:23 23:8 23:21 worthiness [t1 8:4 writing [1] 18:5 written (21 16:14 21:4 wrong [t1 8:11 -Y- year [1] 5:9 Index Page 4 HUGHES, ALBRIGHT, FOLTZ & NATALE 717-540-0220{717-393-5101 t ? 74 Stonehedge Office 427 Village Drive Carlisle, PA 17015 March 25, 2008 To be Formed Entity Scott W. Hershey Robert J. Philbin 2101 Orchard Road, Suite 43 Camp Hill, PA 17011 ORRST-0'W'--N BANK A 71,udition c f Excellerwe 0 77 Fast King Street F' O. Rox 250 Shipprnsburg, PA 17221 Dear Scott and Bob: 1 am pleased to inform you that Orrstown Bank has approvod the application submitted by you, Scott W. Hershey and lZob, '??il airs ?ztd the to ???' formed entity, (liereinafier "Borrower). The terms and conditions of-tliv approval arc as fi)llow,, Amount & Type of Loan: $250,000 Commercial Mc7rtt;agc Use of Loan Proceeds: Refinance existing Installment '.iatc-s Agreement and a line at PNC, and working capita F Term of loan: 240 Months Interest Rate: Fixed at 6.75% for five 51 y-eais; then to float with the Wall Street Journal Prime Rsdte plus <.,._•'1tl"%, (currently 6.50%); or a fixed rate to be negotiates'. Amortization: Amortized over 240 month,,. Page I j)i W7 Mr <-2b-Cry n('?r 0 0 To be Formed Entity t. )rrstowrr Bank Hershey, Scott W. and Philbin, Robert J.. Commitment Letter March 25, 2008 Collateral: First lien on 2101 Orchard Road, Sprite 3, Camp Hill, PA. Other Fees & Conditions: 1. The loan shall be guaranteed by Scott W.. i lerslr?-?. Rohe;t.l. Philbin, and Hershey, Philbin & Associates, Inc. 2. The loan will be cross-defaulted with all othci ihllt,,ations of the borrower such that a default under any other indebtedness or liability s,f'th(.: hon,ower to the Bank or to any other party, now or hereafter existing, however r'eated or :!ri in J, and however evidenced, will constitute an event of default under tlaa.; 1«aar. ITT addition, this loan shall be cross- collateralized with, and the security f()f. thi;• laa,?ii. .;!sn act to secure, any other obligation of the borrower to the lender, now, )r ? rra.r tr.r existing. 3. The Borrower will provide the flank with of the Operatmi g, /kgreement and Certificate of Organization or Fictitious Name fir°y+4;tr st ion and Articles of incorporation or Partnership Agreement for lite, to be flormed enii?k; 4. At settlement the Bank rrrust be provided with s;v `i tle insurance in an amount not less than the amount of the loam. ?.Jnle:>s oth%;, -v sa,- r is ctcd within five (5) days of acceptance of this commitment, the title insiwMic?- polic.±v 'will be issued by Bankers Settlement Services - Capital Region, I,I,(' ,e id, ,e ur;:urce will insure good and marketable title, free and clear of all liens, cric c; )rarru;Cs wand objections, in the real estate being held as collateral. Any exceptions must be .,pprc3vcd by the Bank in writing prior to settlement. Standard Pennsylvania endorsc:mer?t 00.,4)0 and 710, if applicable, are required- The Bank requests iliac an interim titaprovided to the Bank at least ten (10) days in adv;mce. of settleiner-j! ;hi?,uld indicate the items that will be removed at or prior sci lenrew 5. At settlement, the Bank will he furnished with . collateral. Tire original policy should be in tl v mortgagee, further insured ind tirst lien 'noldcr during the life of tlae loan. The original polhn substitutions, rrrust be I-lied xvith Orrsiowr Wir Shippensburg. PA 17257. Insrrr:rnce coverage on the .:?? srd thr, loan and name the flank as la,. l„adj. ,rust be maintained in full la ch.l?dirq, any extensions, renewals or $lnx 250, 77 l:,r,t King; Street, 6. A flood plain certification, of the real estate I?t I ire 1ka collateral, is required by the Bank. If any ol'the real t:stat,, improvements ark _,)+',satc,,; 6-t flood hazard area, the Bank shall receive an original of r? flood insunj A% c po .;:ura the Bank as first lion holder, The policymust be in the amount of-the loaaa and; , h :airrti raetl in fill] duringthe life ofthe loan. The original policy, including any ex_tensio x r?. ?=s e<aa?s or substitutions, must he filed witlr Orrstown Bank. P.O. Box .)0, 77 fast Kir ?wr, K ?fail7perrsburg, i'A 1775T l'agc `? a : t r? r f8 f To be Formed Entity Orrstown Bank 1-tershcy, Scott W. and Philbin, Robert I. Coinmitment Letter March 25, 2008 7. The Bank will require a satisfactory appraisal c! :it: rc al cs,ate ilcing held :rs collateral. The appraiser will be engaged by the Rank. 'I he apps--iisal should be prepared in conformance with the Uniform Standards of Pro[essional Appraisal- Practice and should establish an acceptable value for the real estate: being field u ollatcra.l_ 8. "[`hc Borrower shall rtraintaiar :ill deposit ,_:ourir -.vitii r;,?c.: i:ank durirrg the life of-the loan. 9. The Bank is requiring the Borrower to prowl k Eht. stank with annuai (:VA-prepared financial statements and tax returns durin, the 1, i'?, a-: t t: 'oar,, 10. The Bank is requiring the Guarantor(s) to teo4: Bank with 'tax returns and personal/business Financial statements on :?ra 40W 1,1 i)taa•is, ?Junng life of the loan. 11. A loan agreement satisfactory to the Bank co oiainiiq'-, additional covenants, terms and conditions is required to be Cxecuted at s4m1ct i i, 12. At the time of settlement, the Borrower steal: 1... ill?it, lE1ank a loru? ongination tee of $1,500 and a docwrnerrt preparation lice ol_$25? 13. Should Borrowerprepay all .r any arrroi 1, of-p; ?'. rj ing the next five (5) years, the Borrower shall he assessed against the anic unt Firr goof 'lvr- percent (5-00%) prepayment penalty. The assessment percentage shad decrc .[' c A_ -r:cnt (1.00°/0) pc-r annum to par. Lender acknowledges that excepted from this, ,t? I'I;,. VOC:-? "rill he principal payments that are generated as a result of operation of the hia , tnc"- `or which the loan was extended. Specifically not excepted wi 1) be any pwpnymen; 0;01 ??yt0.11 as a result of a refinancing at any other financial institution. l_xcept forit IC for ;? ,. ;torr(r)ivermay pay all oraportion of the amount owed earlier than is clue. L;irly pa'. ao°., unless agreed to by Lender in writing, relieve Borrower orBorrower' , .)blig;x . E:: +..:,r?tira;?E; to make payments under the payment schedule- Rathe'i they will reduce 6 , t,a iio',ipal balance due rand may result in . Borrower making fewer payments. 14. The principals must sign all documentation. '"c° ' 'a ate;. a i r?t)t aCCept signatures by powers . ol'attornev_ 15. The Borrower will pay all fees, acco.-;rt inl; and all other fees incurred by the Bank in connection with thin; loar? trtmtrrtiorth?:-?;?? tti?t Nvill be paid., even i [the loan does riot settle. 16. The final loan documentation may cont<tira ,v-_'nrantu, terms and conditions, which will supersede thti term,: and cc?nditioair, ?ILIC r:_ Page: o 0i To be Formed Entity Orrstown Bank Hershey, Scott W. and Pnilbin.. Robert,' Cotntnitrrtent Letter March 25, 2008 The Bank has a right to cancel this commitment if Lhc.` e is ,my tnf umal change (in the sole opinion of the Bank) in the financial position of the Borrower f onz tilt date- apt thc: application or if the collateral is substantially destroyed prior to the settlement. This commitment letter constitutes a loan offer. Nca:t ,.. irk+aie<?tc your acceptance of the aforementioned loan terms by signing and returnirrt; this 4A Igiflai Loi nirtilment letter. I have enclosed a copy of this letter for your record=s Once the Ba ha.S , L,,e.i VC-d 1, ; original signed commitment letter, we will initiate the preparation of the loam docuri(.,?ii;lti01'; , trcter all searches and appraisals and will establish a tentative settlerent date.. The Bank's commitment to extend the loan undc;i the terminate if the Bankdoes not receive this signed cornrnit days from the date of letter)- Ifthis commitmeni lelfe- before May 24, 2008 (60 days ffi - she t1ate: of ter? settlement does not occur on or belark- May 24, 2008 (61 extended only at the option of-the Bzjr.k rani' ;,n: :.onditions otitlined above will R? 101, tcl ;:)h Or before April 24, 2008 (30 settlement u,u.st occur on or will be terminated if .7 Starr the date of letter). It may be Thank you for the opportunity to acconnnodate you with t mat i 1' you have any questions please feel free to contact me at (717) 258-ti',70 Very truly yours, ORRSTOWN BANK Paul P_ Baynurn Vice President and Business Development Officer a ?o n a 0 11o To be Formed Entity Hershey, Scott W. and Philbin, Robert.), March 25, 2008 ,. )rrstown Dank C'orninitment Letter ACCEPT AM t. Intending to be bound, the undcrslgned accept the i.?rrcn)Cni!onc;"< is wi terms and :agree to the terms and conditions as stated. Scott W. Hershey Off i cer/Member/Partner To be formed entity I)atc' Robert J. Philbin Data Officer/ Member/Partner To be formed entity. Scott W. Hershey )att Guarantor Robert J. Philbin ,:rte Guarantor Robert J. Philbin ) a c President Hershey, Philbin & Associates, Inc- Scott W. Hershey Secretary Hershey, Philbin & Associates. Inc. Page ` YPI To be Formed Entity Hershey, Scott W. and Philbin, Roberti, March 25, 2008 BORROWER'S ATTORNEY INFORMATION Robert: C. Saidi!; Borrower's Attorney: 26 West f filth StI'CC Attorney's Address_ Carlisle, PA 1 701 Attorney's Telephone Number: 7 i 7-243-6222 Attorney's Fax Number: Rmsca 312»08 L?-243-6480 ")rrstown Bank Commitment Letter Pace 6 Stonehedge Office 427 Village Drive Carlisle, PA 17015 May 13, 2008 A To-Be-Formed Entity owned by Scott Hershey and Robert Philbin 2101 Orchard Road, Suite #3 Camp Hill, PA 17011 Dear Scott and Bob: I am pleased to inform you that Orrstown Bank (hereinafter "Bank") has approved the application submitted by you, Hershey-Philbin, (hereinafter "Borrower). The terms and conditions of the approval are as follows: Amount & Type of Loan: $251,250 Commercial Mortgage Use of Loan Proceeds: Refinance existing Installment Sales Agreement and a line at PNC, and working capital. Term of Loan: 240 Months Interest Rate: Fixed at 6.75% for five (5) years; then to float with the Wall Street Journal Prime Rate plus 0.50% (currently 6.50%); or a fixed rate to be negotiated. PaaP 1 of 7 Hershey-Philbin March 25, 2008 Orrstown Bank Commitment Letter Collateral: Satisfactory lien on 2101 Orchard Road, Camp Hill, PA, indicating an overall Loan-to-Valueof no more than 75%. This mortgage will be transferred to Suite 3 upon completion of the Condominium agreement. Other Fees & Conditions: 1. The loan shall be guaranteed by Scott W. Hershey, Robert J. Philbin, and Hershey, Philbin & Associates, Inc. 2. The loan will be cross-defaulted with all other obligations of the borrower such that a default under any other indebtedness or liability of the borrower to the Bank or to any other party, now or hereafter existing, however created or arising, and however evidenced, will constitute an event of default under this loan. In addition, this loan shall be cross- collateralized with, and the security for this loan will also act to secure, any other obligation of the borrower to the lender, now or hereafter existing. 3. The Borrower will provide the Bank with copies of the Operating Agreement and Certificate of Organization or Fictitious Name Registration and Articles of Incorporation or Partnership Agreement for the to be formed entity 4. At settlement the Bank must be provided with satisfactory title insurance in an amount not less than the amount of the loan. Unless otherwise directed within five (5) days of acceptance of this commitment, the title insurance policy will be issued by Bankers Settlement Services - Capital Region, LLC. The title insurance will insure good and marketable title, free and clear of all liens, encumbrances and objections, in the real estate being held as collateral. Any exceptions must be approved by the Bank in writing prior to settlement. Standard Pennsylvania endorsements 100,300 and 710, if applicable, are required. The Bank requests that an interim title insurance binder be provided to the Bank at least ten (10) days in advance of settlement. The binder should indicate the items that will be removed at or prior to settlement. 5. At settlement, the Bank will be furnished with Fire and Hazard Insurance coverage on the collateral. The original policy should be in the amount of the loan and name the Bank as mortgagee, further insured and first lien holder. The policy must be maintained in full during the life of the loan. The original policy, including any extensions, renewals or substitutions, must be filed with Orrstown Bank, P.O. Box 250, 77 East King Street, Shippensburg, PA 17257. 6. A flood plain certification,of the real estate being held as collateral, is requiredby the Bank. If any of the real estate improvements are located in a flood hazard area, the Bank shall receive an original of a flood insurance policy naming the Bank as first lien holder. The policy must be in the amount of the loan and be maintained in full during the life of the Paae I of 7 1 Hershey-Philbin March 25, 2008 Orrstown Bank Commitment Letter loan. The original policy, including any extensions, renewals or substitutions, must be filed with Orrstown Bank, P.O. Box 250, 77 East King Street, Shippensburg, PA 17257. 7. The Bank will require a satisfactory appraisal of the real estate being held as collateral. The appraiser will be engaged by the Bank. The appraisal should be prepared in conformance with the Uniform Standards of Professional Appraisals Practice and should establish an acceptable value for the real estate being held as collateral. 8. The Borrower shall maintain all deposit accounts with the Bank during the life of the loan. 9. The Bank is requiring the Borrower to provide the Bank with annual CPA-prepared financial statements and tax returns during the life of the loan. 10. The Bank is requiring the Guarantor(s) to provide the Bank with tax returns and personalibusiness financial statements on an annual basis, during life of the loan. 11. A loan agreement satisfactory to the Bank containing additional covenants, terms and conditions is required to be executed at settlement. 12. At the time of settlement, the Borrower shall pay to the Bank a loan origination fee of $1,500 and a document preparation fee of $250. 13. Should Borrower prepay all or any amount of principal during the next five (5) years, the Borrower shall be assessed againstthe amount prepaid, a five percent (5.00%) prepayment penalty. The assessment percentage shall decrease one percent (1.00%) per annum to par. Lender acknowledges that excepted from this assessment will be principal payments that are generated as a result of operation of the business for which the loan was extended. Specifically not excepted will be any prepayments generated as a result of a refinancing at any other financial institution. Except for the foregoing, Borrower may pay all or a portion of the amount owed earlier than is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower or Borrower's obligationto continue to make payments under the payment schedule. Rather, they will reduce the principal balance due and may result in Borrower making fewer payments. 14. The principals must sign all documentation.The Bank will not accept signatures by powers of attorney. 15. The B orrowerwill pay all legal fees, accounting fees, and any and all other fees incurred by the Bank in connection with this loan transaction. These fees will be paid, even if the loan does not settle. 16. The final loan documentation may contain additional covenants, terms and conditions, Pam-. 4 of 7 Hershey-Philbin March 25, 2008 which will supersede the terms and conditions stated herein. Orrstown Bank Commitment Letter The Bank has a right to cancel this commitment if there is any material change (in the sole opinion of the Bank) in the financial position of the Borrower from the date of the application or if the collateral is substantially destroyed prior to the settlement. This commitment letter constitutes a loan offer. Please indicate your acceptance of the aforementioned loan terms by signing and returning this original commitment letter. I have enclosed a copy of this letter for your records. Once the Bank has received this original signed commitment letter, we will initiate the preparation of the loan documentation, order all searches and appraisals and will establish a tentative settlement date. The Bank's commitment to extend the loan under the terms and conditions outlined above will terminate if the Bank does not receive this signed commitment letter on or before April 24, 2008 (30 days from the date of letter). If this commitment letter is accepted settlement must occur on or before May 24, 2008 (60 days from the date of letter). This commitment will be terminated if settlement does not occur on or before May 24, 2008 (60 days from the date of letter). It may be extended only at the option of the Bank. Thank you for the opportunity to accommodate you with this loan. If you have any questions please feel free to contact me at (717) 258-5170. Very truly yours, ORRSTOWN BANK Paul P. Baynum Vice President and Business Development Officer ACCEPTANCE Intending to be bound, the undersigned accept the aforementioned loan terms and agree to the terms and conditions as stated. Scott W. Hershey General Partner Date Pam- 5 of 7 Hershey-Philbin March 25, 2008 Hershey-Philbin Orrstown Bank Commitment Letter Robert J. Philbin Date General Partner Hershey-Philbin Scott W. Hershey Guarantor Robert J. Philbin Guarantor Robert J. Philbin President Hershey, Philbin & Associates, Inc. Date Date Date Scott W. Hershey Date Secretary Hershey, Philbin & Associates, Inc. BORROWER'S ATTORNEY INFORMATION Robert C. Saidis Borrower's Attorney: SAIDIS, FLOWER & LINDSAY 26 West High Street Pace 6 of 7 Hershey-Philbin March 25, 2008 Orrstown Bank Commitment Letter Attorney's Address: Carlisle, PA 17013 Attorney's Telephone Number: 717-243-6222 Attorney's Fax Number: 717-243-6486 Revised 321108 Pave, 7 of 7 4 Associates, Inc. A June 20, 2008 Hartman & Associates 2101 Orchard Road Camp Hill, PA 17011 Att: John Clark and Danny Hartman Dear Janet Hartman and the Robert G. Hartman estate, I would like to take this opportunity to inform all parties involved in the 2101 Orchard Road, Camp Hill, Pa. property that we (Robert J. Philbin and Scott W. Hershey) are scheduling a closing for and settlement of our Installment Agreement of Sale dated: October 24, 1994. The settlement date is Thursday, August 28, 2008, the time and place to be confirmed. It is expected that we will receive an insured, licensed and marketable title to this property at this time. Thank you in advance, Scott W. Hershey ADVERTISING • DESIGN • PUBLIC RELATIONS • MARKET RESEARCH 2101 Orchard Road, Suite 3 Camp Hill, PA 17011-7439 (717) 975-2148 - Fax (717) 975-2152 •wrr_harthwunhilhin rnm cc. Paul P. Baynum Bob Sadis, Esq. 717-243-6486 SAIDIS SHUFF FLOWER S 26 West High Street Carlisle, PA 17013 Phone: (717) 243-6222 Fax: (717) 243.6486 979 P02 MAR 26 '08 07:26 Fiax ft Lois tftm L Lenker Pow 249-OWS poem plm+« DMm Mam 26, 2008 Ma Hersh-Phffl* tx: 'Commwft: Thanks. Kandi V- 717-243-6486 SAIDIS SHLFF FLOWER 979 103 MAR 26 108 07:26 Eyelity National Title Insff"ce CCo,_,_n:D_a?n1 486 Norristown Road, Suite 230. Blue Bdl. PA 1%22 (800) 441-5429 (610) 325.5720 ORRSTOWN BANK, its successors and/or assigns as tbek interests may appear 77 East King Street Shippensburg, PA 17257 DATE: March 26,2M8 RE: CLOSING SERVICE LETTER *ISSUING AGENT OR APPROVED ATTORNEY: •Abatnct Company of Central PA, Inc. 26 west Nigh Street Carlisle, PA 17013 *BINDER OR COMMITMENT NO.: FN200"10 BORROWER: Hershey-Philbin PROPERTY: 2101 Orchard Road, Camp Hill, PA 17011 Dear Customer: When title insurance of Fidelity National Tito Insurance Company (the Company) is specified for your protection in connection with the closing of the, above described real estate transaction (tire Closing) in which you are to be a lender secured by a mortgage of an interest in land, the Company, subject to the Conditions and Exclusions set forth below. hereby agrees to reimburse you for actual loss incurred by you in connection with the Closing when conducted by the above named Issuing Agent (an agent suthorixed to issue title insurance fur the Company) or the, above named Approved Attorney (an attorney upon whose oortification of title the Company issues title insurance) and when such toss arises out of: I. Failure of the Issuing Agent or Approved Attorney to comply with your written closing instructions to the extent that they relate to (a) the title to said interest in land or the validity. enforceability and priority of the lien of said mortgage on and interest in land, including the obtaining of documents and the disbursement of fiords necessary to establish such title or lien; or (b) the collection and payment of funds due you: or 2. Fraud or misapplication of the Issuing Agent or Approved Attorney in handling your funds in connection with the matters set forth in numbered paragraph l above. CONDITIONS AND EXCLUSIONS A. The Company will not be liable to you for loss arising out of. 1. Failure of the Approved Attorney to comply with your closing instructions which require title insurance protection inconsistent with that set forth in the title insurance binder or commitment issued by the Company. Itrstr moons which require the removal of specific exceptions to title or compliance with the requirements contained in said binder or commitment shall not be deemed to be inconsistent. 2. Loss or Impairment of your funds in the course of collection or while on deposit with a bank due to bank failure, insolvency or suspension. except such as shall result from bilure of the issuing Agent or the Approved Attorney to comply with your written closing instructions to deposit the funds in a bank which you designated by names 3. Medwrtics' and ntaterialrnen's liens in connection with a construction loan transaction, except to the extent that protection against such I inns is afforded by a title insurance binder, commitment or policy of the Company. B. if the Closing is to be conducted by an Approved Attorney. a title insurance binder or commitment for the issuance of a policy of title insurance of the Company must have been received by you prior to the transmission of your final closing instructions to the Approved Attorney. C. Should the Company reimburse you pursuant to this latter it shall be subrogated to all rights and remedies which you would have had against any peson or property had you not been so reimbursed. Liability of the Company for such reimburscnment shall he reduced to the extent that you have knowingly and voluntarily impaired the value of such right of subrogation. D. Any liability of the Company for loss incurred by you in connection with the Closing by an Issuing Agent or Approved Attorney shall he limited solely to the protection provided by this fetter. F. Liability under this letter is limited to the amount of the policy of title insurance to be issued. and any payment of loss under this letter shall constitute a payment under the policy. F. Claims shall be made promptly to the Company at its office at P.O. Box 45023 Jacksonville, Florida 32232-3023. When the Wlurc to give prompt notice shalt prejudice the Company, then liability of the Company hereunder shall be reduced to the extent or such prejudice. G. The Company shall not be liable hereunder unless notice of claim in writing is received by the Company within one year from the date of the Closing. H. This letter does not appoint the above named Approved Attorney. if any, n an agent of the Company. 1. The scope and effect of this Letter is limited to a single transaction. which is the Closing on the commitment or binder referenecui in the caption. Fidelity Nationst Title Insurance Company BY: Raymond R. ark. Prescdent 0 Mrtt be twWe dfor tick Lent to be a eabe TIRBOP - PA CSL (10/00) TRANSACTION SPECIFIC PP 717-243=S4 G - SA I D I S SNUFF FLOWER 979 P04 MAR 26 ' 08 07:27 r Fidelity National Title Insurance Company COMMITMENT File No. FN2008-010RCS SCHEDULE A 1. Commitment Date: 3/25108 2. Policy or Policies to be issued: Amount (a) ALTA Owners Policy, as modified by TIRSOP (06-17-06) $ 148,000.00 Proposed Insured: Hershey-Phllbin (b) ALTA Loan Policy, as modified by TIRBOP (06-17-06) $ 250,000.00 Proposed Insured: Onstown Bank, its successors and/or assigns as their interests may appear 3. The estate or interest in the land described or referred to in this commitment and covered herein is Fee Simple and tide thereto is at the effective date hereof vested in: Janet W. Hartman, single person 4. The land referred to in this commitment is described as follows: For informational purposes only., 2101 Orchard Road, Camp Hill, PA 17011 Lower Allen Township County of Cumberland SEE CONTINUATION OF SCHEDULE A FOR LEGAL DESCRIPTION Coungnignet Abstract Company of Central PA, inc. By: Authorized ipatory ALTA ConlmitmsM Scheduler A 979 P06 MPR 26 ' 08 07:27 717-243-6486 SAIDIS SNUFF FLOWER Fidelity National Title Insurance Company File No. FN2008-01ORCS SCHEDULE B -- SECTION 1 The following are the requirements to be complied with: 1. Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. 2. Pay us the premiums, fees and charges for the policy. 3. Documents satisfactory to us creating the interest in the land and the mortgage to be insured must be executed, delivered and recorded. a. Decd from Janet W. Hartman, single person to Horabey-Phiibin. b. Mortgage to be properly executed by Hershey-Phlibin in favor of Onstown dank, to secure ft proposed loan In the amount of $214000.00. 4. You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. 5. Proof of identity, legal age, competency and marital status of all parties to this transaction. 6. Proof that there are no overdue support obligations of record with the domestic relations section of the parties to this transaction, up through the date of recording of the instruments to be Insured. 7. Town, County and School Taxes and Waiter and Sewer Rent receipts for the years 2006 through 2008, inclusive, to be produced and filed with the Company. All assessments and taxes for the current year and all subsequent years. Assessments: $.00 Parcel No: 23 0849138 8. Satisfactory evidence must be produced that the premises are entirely in the possession of the owner and that the premises are not subject to the terms of any unrecorded lease. 9. Proof that no sewers have been installed or ordered to be installed, abutting or in front of or upon premises described herein prior to completion of this transaction or receipts for the cost of same to be produced, otherwise an exception will be certified in Schedule "IT' of the Policy relieving Company from liability for any loss arising by reason of a claim or claims for such sewer installation and connection therewith. The following note is for informational purposes only: The following deed(s) affecting said land were recorded within six (6) months of the date of this Report: None Valid only It Schedules A and 641 are aaa&Ad. ALTA Commitment Sdwdule 6 - I ?1?-243-6486 SAIDIS SHUFF FLOWER 9?9 P07 MAR 26 108 07:28 Fidelity National Title Insurance Company SCHEDULE B - SECTION 2 File No. FN2008-01ORCS Schedule 8 of the policy or policies to be issued will contain the following exceptions unless the same are disposed of to the satisfaction of the Company. 1. Defects, liens, encumbrances, adverse claims or other matters, if any created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment 2. Right or claims of parties in possession of the land not shown by the public records. 3. Any lien, or right to a lion, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 4. Taxes, levies or special assessments which are not shown by the public records. 5. Subject to possible tax increase based on additional assessment heretofore or hereafter made by reason of new construction or for any major improvements to premises pursuant to Acts of Assembly relating thereto. 6. Easements, encroachments, overlaps, boundary line disputes and other matters affecting title which a survey would disclose, and which are not show by the public record. (For an additional charge and upon submission of an acceptable survey, this exception will be deleted by endorsement and the policy will set forth those matters, if any, affecting title.) 7. Any encroachments, easements, measurements„ variations in area or content, party wags or other facts which a correct survey of the premises would show. (Upon production of a survey made in accordance with "Minimum Standard Detail Requirements for Land Title Surveys as adopted by American Land Title Association and American Congress on Surveying and Mapping," by a surveyor approved by the Corporation, this objection will be removed and only the specific objections, if any, disclosed thereby, will be excepted herefrom.) 81 Road ways, streams or easements, if any, not shown by the public records, riparian rights and the title to any filled-in lands. 9. Possible additional tax assessment by reason of new construction or improvements pursuant to the provisions of the Acts of Assembly relating thereto, not yet due and payable. 10. $238,400.00 mortgage in favor of PA Statue Bank dated 4121194, recorded 4=94, in Mortgage Book 1208, Page 527. 11. Assignment of Rents in favor of PA State Bank recorded 4127194 in Misc. Book 471, Page 1081, 12. Grant of right of way for wafter line to Richard D. and Martha A. Kbmiiler dated 101=54, recorded in Misc. Book 115, Page 124. 13. Subject to rights of way, easements, setbacks and restrictions recorded with Plan of Hartman & Associates, Inc. in Plan Book 80, Page 144. 14. Subject to 2008 county/township tax now due and payable. 15. Subject to 2007-08 school tax now due and payable. Valid only if Sahwdulaa A and &1 are attached. ALTA Caranihneilt SChadUia 8 - It JANET W. HARTMAN, PLAINTIFF V. HERSHEY-PHILBIN ASSOCIATES, INC., DEFENDANT IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 08-7503 CIVIL IN RE: DEFENDANT'S PETITION TO STRIKE OR OPEN JUDGMENT BEFORE OLER. J. AND EBERT, J. ORDER OF COURT AND NOW, this 15th day of October, 2010, upon consideration of the record and the briefs filed by both parties; IT IS HEREBY ORDERED AND DIRECTED that: (1) Plaintiff s Motion to File an Amended Complaint is GRANTED; (2) Defendant's Motion to Strike Judgment by Confession is DENIED; (3) Defendant's Motion to Open Judgment by Confession is DENIED. Samuel L. Andes, Esq. Attorney for the Plaintiff R. Mark Thomas, Esq.. Attorney for the Defendant 6~ES /'YL7-1~ /v ~ s~~v ~~ By the Court, ~~ M. L. Ebert, Jr., J. i~ ~ r..y ~ ~ ~ ~~ ~ ~ ~ ~-~ ~ ~ ~' ~ '~ `o r r ~~, cr r *r ~c~ r ~ --~ o ~~ ~ x" ~ ~~ ~ -n o D~ c? ~m ~ ~, n ~ ~ ~ JANET W. HARTMAN, PLAINTIFF V. HERSHEY-PHILBIN ASSOCIATES, INC., DEFENDANT 1N THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO.08-7503 CNIL IN RE: DEFENDANT'S PETITION TO STRIKE OR OPEN JUDGMENT BEFORE OLER, 3. AND EBERT, J. OPINION AND ORDER OF COURT Ebert, J., October 15, 2010 - FINDINGS OF FACT Janet W. Hartman (hereinafter Plaintiff] is an adult individual who resides in New Cumberland, Cumberland County, Pennsylvania.' Hershey-Philbin Associates, Inc. (hereinafter Defendant) is a Pennsylvania corporation which maintains its principal offices at 2101 Orchard Road in Camp Hill, Lower Allen Township, Cumberland County, Pennsylvania.2 On October 24, 1994, Robert G. Hartman, Jr., the deceased husband of Plaintiff entered into two separate agreements with Defendant. The first was an "Installment Agreement of Sale" by which he sold an undivided one-third interest, as tenants in common, to Defendant in certain real property located at 2101 Orchard Road in Camp Hill, Cumberland County, Pennsylvania.3 The second was a "Tenants in Common Ownership Agreement" which outlined the rights, responsibilities and obligations of the parties to manage the property.4 The total purchase price ' Complaint for Confession of Judgment in Ejectment, Dec. 29, 2008, ¶ 1, (No. 08-7503) (hereinafter Complaint). 2 Complaint at ¶ 2. s Ex. A, "Installment Agreement of Sale," Complaint. a Ex. A, "Tenants in Common Ownership Agreement," Motion to Strike and/or Open 3udgment of Ejectment by Confession, Feb. 6, 2009, ¶ 18, (No. 08-7503) (hereinafter Motion to Strike and/or Open Judgment). 1 for Defendant's one-third interest as tenant in common was $148,000.00, of which ten percent was paid in cash at the time of settlement and the balance, together with interest at 7.5 percent, was to be paid within five years.5 This never happened. In essence, when the two agreements are read together, Defendant's undivided one-third interest in the property entitled it to essentially the exclusive use of the third floor of the building along with no less than 20 parking spaces.6 Defendant has used this third floor for over 14 years, from the time of initial contract in October of 1994. On April 10, 2000, Lower Allen Township approved a plan for a new subdivision submitted by Robert G. Hartman, Jr., and Plaintiff to combine the property at 2101 Orchard Road with an adjacent tract of land. This subdivision plan was filed in the Cumberland County Recorder of Deeds Office on Apri128, 2000, in Planbook 80 on page 144. On July ?, 2000, an "Extension Agreement" was executed by and between Robert G. Hartman, Jr., and Defendant to extend the payment terms of the October 24, 1994, Agreement until December 31, 2004.8 This "Extension Agreement" included a provision giving Robert G. Hartman, Jr., the right to subdivide a tract of ground from the tract subject to the Agreement.9 Hershey-Philbin Associates was fully aware that the original tract of land at 2101 Orchard Road was combined with an adjacent tract of land into one property. Obviously at the time of the execution of the extension agreement, Defendants did not object to this combination and in no way felt that it affected their property rights. 5 Ex. A, "Installment Agreement of Sale," Complaint. 6 Ex. A, "Tenants in Common Ownership Agreement," Motion to Strike and/or Open Judgment. Motion to Strike and/or Open Judgment ¶ 15(a). a Ex. C, Motion to Strike and/or Open Judgment ¶ 5. 9 Ex. C at 2(b), Motion to Strike and/or Open Judgment ¶ 5. 2 The new subdivision enabled Robert G. Hartman, Jr., to place a substantial storage structure, now a source of contention, on the property in March of 2003.10 Defendant also points to a conflict regarding the "Tenants in Common Ownership Agreement" involving the installation of a new roof in May 2003 by Robert G. Hartman and the division of that expense.l 1 By a deed dated September 19, 1996, Robert G. Hartman, Jr, transferred his two-thirds interest in the property at 2101 Orchard Road to his wife, Plaintiff.12 Robert G. Hartman, Jr., died on November 9, 2003.13 Under the terms of his will, he left to Plaintiff his remaining assets, which included the "Installment Agreement of Sale" and the remaining one-third interest in the real estate.14 The assignment of the "Installment Agreement of Sale" was confirmed by an "Executor's Deed" dated July 6, 2009.1s In March of 2008, Defendant obtained a commitment letter from Orrstown Bank in the amount of $250,000.00, part of which was to be used by Defendant to pay off the "Installment Agreement of Sale" in fu11.16 However, the financing commitment from Orrstown Bank was subsequently withdrawn. Defendant claims it was withdrawn because they could not obtain a deed in conformity with the "Installment Agreement of Sale.s17 In reality, an examination of the record does not support this claim. The filed deposition of Paul P. Baynum, the Business Development Officer at Orrstown Bank who was negotiating with the Defendant to secure the $250,000.00 loan, establishes that the bank wanted a "Condominium Agreement" for the third 10 Motion to Strike and/or Open Judgment ¶ 26. 11 Motion to Strike and/or Open Judgment at ¶ 21-25. 12 Ex. C, "This Deed," Motion to Strike and/or Open Judgment. 13 Ex. C, "Assignment of Installment Agreement of Sale," Amended Complaint for Confession of Judgment in Ejectment, Jan. 12, 2010, (No. 08-7503) (hereinafter Amended Complaint). 14 Amended Complaint at ¶ 4. 15 Ex. B, "Executor's Deed," & Ex. C "Assignment of Installment Agreement of Sale," Amended Complaint. 16 Motion to Strike and/or Open Judgment at ¶ 14. "Motion to Strike and/or Open Judgment at ¶ 15(c), 17. 3 floor of the building and when they did not get a condominium agreement in place they did not feel that they would have a valid lien position to secure their loan.1 s Prior to 2008 Defendant had failed to make the installment payments in accordance with the agreement.19 For example, the payments due for November and December, 2007, were not made until March 30, 2008.20 The late payments continued until May of 2008, after which Defendant has failed to make any payments on the "Installment Agreement of Sale."zi PROCEDURAL HISTORY On December 29, 2008, after providing Defendant with the notice and opportunity to cure its default that was required by the "Installment Agreement of Sale," Plaintiff filed a Complaint for Confession of Judgment in Ejectment.22 On February 6, 2009, Defendant filed the instant Petition to Strike and/or Open Judgment of Ejectment by Confession. On July 31, 2009, Plaintiff filed an Answer to Defendant's Motion to Strike and/or open Judgment of Ejectment by Confession. On January 12, 2010, Plaintiff filed a Motion to File Amended Complaint for Confession of Judgment in Ejectment to add facts relating to the transfer to Plaintiff of the remaining interest in the subject property owned by Robert G. Hartman, Jr., at the time of his death, and the formal assignment to Plaintiff of the "Installment Agreement of Sale" from the personal representatives of the Estate of Robert G. Hartman, Jr.23 On February 5, 2010, Defendant opposed the Motion to Amend by filing an Answer to Plaintiff's Motion to File Amended Complaint with New Matter. On March 5, 2010, Plaintiff then filed a Reply to Defendant's New Matter. Argument was held on July 7, 2010. 18 Deposition of Paul Baynum, Dec. 17, 2009, p. 21. 19 Ex. B, "Notice of Default," Complaint. 20 Ex. B, "Notice of Default," Complaint. 21 Ex. B, "Notice of Default," Complaint; Motion to Strike and/or Open Judgment at ¶ 18. zz Ex. B, "Notice of Default," Complaint. zs Amended Complaint at ¶ 4. 4 DISCUSSION I. Plaintiff s Amended Complaint is Allowed The Pennsylvania Rule of Civil Procedure, 2952, provides in relevant part that the complaint shall contain "a statement of any assignment of the instrument." Pa.R.C.P. 2952(a)(4). Plaintiff does not dispute that iri her Complaint she mistakenly stated that she owned the property in question and the "Installment Agreement of Sale" signed by Defendant. Plaintiff s husband had, however, only transferred atwo-third interest to Plaintiff before his death and had not assigned Plaintiff the "Installment Agreement of Sale." Defendant contends that because Plaintiff was not a party to the "Installment Agreement of Sale" attached to the Complaint, she is not entitled to recover because only the real party in interest has the right to enter judgment by confession. Fourtees Co. v. Sterling Equip. Corgi., 363 A.2d 1229, 1232 (Pa. Super. 1976). However, when Plaintiff learned of the mistake in her Complaint, she took effective measures to correct it before filing her Answer to Defendant's petition, and her Motion for Leave to Amend her Complaint. Under the terms of his will, Plaintiff's husband left the remaining one-third interest in the real estate and the assignment of the "Installment Agreement of Sale" to Plaintiff. Plaintiff has subsequently received a deed from the personal representatives of the Estate of her husband that formally conveyed the remaining one-third interest in the property, and formally assigned to her all interest in the "Installment Agreement of Sale." These documents were attached to Plaintiff's Answer to Defendant's petition and to her Motion for Leave to Amend her Complaint. Therefore, this formal defect in Plaintiff s Complaint can be corrected if she is granted leave to amend her Complaint. 5 In West Penn S. & G. Co. v. Shippingport S. Co., 80 A.2d 84, 86 (Pa. 1951), the Pennsylvania Supreme Court stated: It has always been held that formal defects, mistakes and omissions in confessions of judgment maybe corrected by amendment where the cause of the action is not changed, where the ends of justice require the allowance of such amendment, and where the substantive rights of defendant or of any third persons will not be prejudiced thereby. Id. at 86. Plaintiff s mistake in her original complaint is a formal defect in the judgment entered against Defendant by confession and maybe corrected by amendment. Here also, the cause of action remains unchanged. It is still a claim for possession and ownership of the property because Defendant seriously breached the contract. The ends of justice require the allowance of the amendment because, without that amendment, Plaintiff cannot enforce her rights under the "Installment Agreement of Sale." Plaintiff's amendment merely seeks to accurately reflect the facts and in doing so does not prejudice the substantive rights of Defendant. Furthermore, the Pennsylvania Supreme Court has also decided that amendment is permissible to substitute the real party at interest in the litigation for a party incorrectly named as the plaintiff in the original complaint. In Miller v. Michael Morris, Inc., 63 A.2d 44 (Pa. 1949), the Supreme Court upheld the trial court's refusal to strike or open a judgment in ejectment entered by confession. There the defendant had contended that the judgment was invalid because the original plaintiff was not the real party at interest. The judgment had been confessed on a lease which had been assigned from one lessor to another. When the lessee defaulted, the judgment was entered in the name of an earlier lessor who had assigned the lease to another lessor. The defendant seized upon the defect and asked the trial court to strike the judgment on that basis. The trial court permitted the amendment to the complaint, to substitute the lessor holding the lease at the time of the entry of judgment, and the defendant appealed. The 6 Pennsylvania Supreme Court, upholding the trial court's decision, determined that the judgment should have been entered in the name of the real party in interest, but then continued to state: This rule is mandatory and the lower courts have properly enforced this rule in many instances. Under the circumstances of this case, however, the Court below properly permitted the `amendment to the pleadings to conform with the provisions of this rule.' We will treat it as if it was amended and as if the judgment was so entered. Miller., 63 A.2d at 47. Having so ruled, the Supreme Court upheld the trial court's decision and the judgment in ejectment stood. As this case makes clear, substitution of the real party in interest for a plaintiff mistakenly identified as the claimant is a defect which maybe corrected by amendment. Therefore, this Court permits the amendment of Plaintiff's Complaint which corrects the formal defect present in that original Complaint. II. Defendant's Petition to Strike and/or Open the Judgment is Denied "A petition to strike off the judgment reaches defects apparent on the face of the record, while a petition to open the judgment offers to show that the defendant can prove a defense to all or part of the plaintiffs claim." Manor Bldg. Corp. v. Manor Complex Assoc., Ltd., 645 A.2d 843, 845 (Pa. Super. 1994)(internal citations omitted. As the following discussion will reveal, both of Defendant's petitions are denied because Plaintiff's Amended Complaint remedies the apparent defect of the record and Defendant has failed to show that it can prove a defense to Plaintiff s claim. "The decision of the trial court on a petition to strike or open judgment will not be disturbed unless there is an error of law or a manifest abuse of discretion." BAIT Ptnr., LP v. E Pointe Prop. I, Ltd., 957 A.2d 1275, 1277 (Pa. Super. 2008). 7 a. The Petition to Strike the Judgment is Denied "A petition to strike a judgment raises a question of law and relief thereon will only be granted if a fatal defect appears on the face of the record." RAIT Ptnr., 957 A.2d at 1277. Defendant contends that the record is fatally defective because the Complaint does not establish that Plaintiff is the real party of interest. Therefore, Defendant seeks to strike entirely the judgment entered against it by confession. However, Plaintiff has subsequently received a deed from the personal representatives of the Estate of her husband that formally conveyed the remaining one-third interest in the property in question, and formally assigned to her all interest in the "Installment Agreement of Sale." This Court has permitted the correction of this formal defect by Plaintiff through the filing of her Amended Complaint. So there no longer exists the question of whether Plaintiff is the lawful owner of the property or the "Installment Agreement of Sale" on which judgment was entered. With Plaintiff's Amended Complaint permitted, the defect of which Defendant complains is cured. Therefore, Defendant's petition to strike Plaintiff s judgment entered against Defendant by confession is denied. b. The Petition to Open the Judgment is Denied Defendant contends that the judgment should be opened because they have averred a meritorious defense. The defense advanced by Defendant is a breach of contract claim in which Defendant alleges that Plaintiff failed to abide by the agreed upon terms of the "Installment Agreement of Sale" when he combined 2101 Orchard Road with the adjacent property. Defendant alleges that due to this combination, Plaintiff was not legally able to tender performance as provided by the "Installment Agreement of Sale." "[A] petition to open rests within the discretion of the trial court, and maybe granted if the petitioner (1) acts promptly, (2) alleges a meritorious defense, and (3) can produce sufficient 8 evidence to require submission of the case to a jury." RAIT Ptnr., 957 A.2d at 1277. Here, Defendant acted promptly in filing its motion to strike or open judgment pursuant to Pa. R.C.P. 2956.1(c)(2), which requires a petition to open or strike a confessed judgment be filed within thirty days after service of a notice. However, this court is not convinced that Defendant has raised a meritorious defense or can produce sufficient evidence to require the case to be submitted to a jury. The standard of sufficiency of the evidence which a court must employ to open a confessed judgment "is that of the directed verdict-viewing all the evidence in the light most favorable to the petitioner and accepting as true all evidence and proper inferences therefrom supporting the defense while rejecting adverse allegations of the party obtaining the judgment." Weitzman v. Ulan, 450 A.2d 173, 176 (1982). Furthermore, "the petitioner need not produce evidence proving that if the judgment is opened, the petitioner will prevail." Liazis v. Kosta, Inc., 618 A.2d 450, 453 (1992), app. denied, 637 A.2d 290 (1993). The terms of the "Installment Agreement of Sale," required Defendant to make timely payments. Defendant claims that due to the combination of the two property tracts, Plaintiff was not legally able to tender performance as provided by the "Installment Agreement of Sale." When viewing all the evidence in the light most favorable to Defendant, this court finds that the combination of the properties did not affect Plaintiff's ability to perform under the terms of the contract, and provide Defendant with a "one-third interest in the premises known and numbered as 2101 Orchard Road, Camp Hill, Pennsylvania." Under the installment agreement of sale signed on October 24, 1994, Defendant bought aone-third interest of the entire premises. This interest is broader than its Paragraph #5 Possession and Occupancy Clause, which guaranteed that Defendant was "entitled to possession of the third floor of the premises and an unspecified 9 one-third, but not less than 20, of the parking spaces in the parking areas adjacent to the premises."24 Defendant used this third floor for over 14 years. Defendant would still own its one-third interest in the premises had it abided by the terms of the contract for timely payment. The failure of Defendant to qualify for a sizable loan is not a defense against the failure to abide by the previously agreed upon terms for timely payment. Even under the extension agreement on July 7, 2000, the entire agreement to transfer the one-third interest in the premises was to have been completed by December 31, 2004. The Defendants did not even apply for the loan it is seeking to use as a defense unti12008. Furthermore, even though the terms of both the Installment Agreement of Sale and the Extension Agreement contemplated the creation of a condominium structure, there is nothing in this record that indicates Defendant ever sought same. The bank wanted a condominium agreement and the Defendants could not produce one. The Defendants simply cannot produce sufficient evidence that the bank turned down the loan commitment because the Plaintiff was unable to transfer the one-third interest in the premises. Accordingly, this is not a meritorious defense. Defendants also raise some issues regarding the roof on the premises in question. Defendants admit that in pazagraph 22 of their Motion to Strike and/or Open Judgment of Ejectment by Confession, that a new roof was installed on the building in 2005. There are no allegations that the Defendant ever raised issues regarding the cost of this roof or any damages they suffered as a result of an inadequate roof during the 3 year period from the time the new roof was installed until Plaintiff's Complaint for Confession of Judgment in December of 2008. Such a complaint at this time does not provide a meritorious defense to the fact that the Defendants did not make timely payments on the original Installment Agreement of Sale and the Extension Agreement all of which should have been concluded by December 31, 2004. It is 24 Complaint for Confession of Judgment in Ejectment, filed Dec. 29, 2008, Ex. A, Para. 5. 10 clear from the record that if the Defendants had received the loan they requested from Orrstown Bank, they would have fully paid the balance remaining on the outstanding purchase agreement without any complaint regarding the roof. Again, a Petition to Open a Confessed Judgment is an appeal to a Court's equitable powers. It is clear that the Defendant does not have any meritorious defenses. As such, the principles of equity do not dictate opening this judgment. Therefore, the Defendant's Petition to Open the Judgment is denied. Accordingly the following order is entered: ORDER OF COURT AND NOW, this 15th day of October, 2010, upon consideration of the record and the briefs filed by both parties; IT IS HEREBY ORDERED AND DIRECTED that: (1) Plaintiff s Motion to File an Amended Complaint is GRANTED; (2) Defendant's Motion to Strike Judgment by Confession is DENIED; (3) Defendant's Motion to Open Judgment by Confession is DENIED. Samuel L. Andes, Esq. Attorney for the Plaintiff R. Mark Thomas, Esq. Attorney for the Defendant By the Court, M. L. Ebert, Jr., 11