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Home My WebLink About01-0781HOURIGAN, KLUGER & QUINN A PROFESSIONAL CORPORATION BY: Joseph E. Kluger, Esquire IDENTIFICATION NO. 56346 LAW OFFICES SUITE SEVEN HUNDRED MELLON BANK CENTER WILKES-BARRE, PA 18701-1867 (570) 825-9401 MELLON BANK, N.A., Plaintiff, VS. ATTORNEY FOR PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY THOMAS C. PSZCZOLKOWSKI, Defendant. CIVIL ACTION -- LAW IN CONFESSION OF JUDGMENT 2001 NO. OI - "/~/ CONFESSION OF JUDGMENT Pursuant to the authority set forth in the warrant of Attorney contained in the original Guaranty and Surety Agreement, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiffand against the Defendant as follows: 423982.1 50014540 2. 3. 3. Principal balance on Note ................... $106,831.11 Interest to 1/19/01 .......................... 2,897.82 Late Fees ................................. 55.67 Attorney's fees (20%) ....................... 21,957.12 TOTAL .............. $131,742.72 plus interest and costs until paid. HOURIGAN, KLUGER & QUINN, P.C. BY: J EP E KLUGER, ESQUIRE Attorney for Defendant for the purpose of this Complaint; otherwise, Attorney for the Plaintiff ORDER AND NOW, this ~t~iay of ~g~..~ 2001, judgment is entered in favor of the / Plaintiff and against the Defendant, THOMAS C. PSZCZOLKOWSKI, in the mount of One Hundred Thirty-One Thousand Seven Hundred Forty-Two and 72/100 ($131,742.72) Dollars, together with interest and costs until paid. PROTHONOTARY 423982.1 5001-4540 2 HOURIGAN, KLUGER & QUINN A PROFESSIONAL CORPORATION BY: Joseph E. Kluger, Esquire IDENTIFICATION NO. 56346 LAW OFFICES SUITE SEVEN HUNDRED MELLON BANK CENTER WILKES-BARRE, PA 18701-1867 (570) 825-9401 MELLON BANK, N.A., VS. THOMAS C. PSZCZOLKOWSKI, A'CI'ORNEY FOR PLAINTIFF : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY Plaintiff, : : CIVIL ACTION -- LAW : IN CONFESSION OF JUDGMENT Defendant. : NO. 2001 COMPLAINT IN CONFESSION OF JUDGMENT The Plaintiff, by and through its counsel, Houdgan, Kluger & Quinn, P. C., hereby complains of the Defendant as follows: 1. The Plaintiff, Mellon Bank, N.A., is a national banking association, conducting business as a bank, with a place of business at 8 West Market Street, Wilkes-Barre, Luzerne County, Pennsylvania. 423985.1 5001-4540 2. The Defendant, Thomas C. Pszczolkowski, is an adult individual having a last known address of 818 Indiana Avenue, Lemoyne, Cumberland County, Pennsylvania 17043. 3. On or about December 10, 1998, the Plaintiffmade a loan to Harris Delivery Service, Inc. in the amount of One Hundred Twenty Thousand Dollars ($120,000.00), which loan is evidenced by a Note and Line of Credit Agreement (the "Note") dated December 10, 1998 and which Note was guaranteed pursuant to a Guaranty and Surety Agreement executed by the Defendant dated December 10, 1998 (the "Guaranty"). (A true and correct copy of said Note and Guaranty are collectively attached as Exhibit "A" and incorporated by reference.) 4. The aforementioned Note and Guaranty have not been assigned. 5. No judgment has heretofore been entered, in any jurisdiction, under the power to confess judgment in said Guaranty. 6. The Guaranty authorizes Plaintiffto confess judgment against the Defendant in favor of Plaintiff for the amount the Defendant is liable to Plaintiff, with interest, attorney's fees and with release of errors. 7. A default has occurred in that the Defendant has failed to comply with the terms conditions of the Note and Guaranty for failure to make timely payments whereby the Plaintiff declared the entire balance of the Note due and payable. 8. An Affidavit of Edward R. Walsh, Vice President of Plaintiff, is attached hereto as Exhibit "B" and incorporated herein as evidencing the debt due the Plaintiff. 423985.1 5001-4540 2 9. Judgment by confession is not being entered against the Defendant in connection with a consumer credit transaction. 10. Consequently, the Defendants are indebted to Plaintiff as follows: 2. 3. 3. Principal balance on Note ................... $106,831.11 Interest to 1/19/01 .......................... 2,897.82 Late Fees ................................. 55.67 Attorney's fees (20%) ....................... 21,957.12 TOTAL .............. $131,742.72 plus interest and costs until paid. WHEREFORE, Plaintiff requests that the Prothonotary enter judgment against the Defendant, THOMAS C. PSZCZOLKOWSKI, in the amount of One Hundred Thirty-One Thousand Seven Hundred Forty-Two and 72/100 ($131,742.72) Dollars, together with interest and costs until paid. Respectfully submitted, HOURIGAN, KLUGER & QUINN, P.C. BY: ~u-.-~.----~ . Jose Ire Suite'g~I~Iellon Bank Center 8 West Market Street Wilkes-Barre, PA 18701 -1867 423985.1 5001-4540 3 ....................... Date $ 120,000.00 Promise To Pay. FORVALUE RECEIVED, and intending to be legally bound, Undersigned, as defined below, promises to pay to: Hellon Bank. ("Bank") or its order at Harrisburqr Pennsylvania thc sum of One Hundred Twenty Thousand and 00/100 Dollars ($ 120t000.00 3, or such lesser or greater principal amount as may be outstanding from time to time under the line of credit ("Line of Credit") established hereunder by Bank for the beaefit of Undersigned, with interest on the outsUmding balance from the date of this Note and Line of Credit Agreement ("Note") at the rate(s) ("Contractual Rate(s)"} and in accordance with the repayment schedule specified below. Borrowing Money. ~Please read carefully.) From thc date hereof to but not including 12/15/2003 (thc "Maturity Date"), Undersigned may borrow money /rom Bank through thc Linc of Credit, up to the amount shown above, by using Mellon Bank's Business Banking Telepbone Hotlinc to access Undcrsigned's Line of Credit and to transfer funds to Undcrsigned's designated Mellon Checking Account. Subject to rules and regulations established by Bank from time to time, Undersigned may also borrow money from Bank by using such other means, if any, ns Bank may provide for that purpose. Bank reserves thc fight to change or ellimnatc, without notice, any means by which Undersigned may borrow through thc Line of Credit and to establish new means by winch Undersigned may borrow. Undersigned may not use borrowings to make payments due under the L/ne of Credit or other indebtedae~ in favor of Bank Undersigned authorizes and directs Bank to depot borrowings from Undcrsigned's Linc of Credit into Mellon Checl~g Account Number 8263485 , titled in the name(s) of Undersigned understands and agrees that, if any parson or entity ~ authorized to sign on or otherwise use Undersigned's designated Mellon Checking Account or any deposit, checking or credit account linked with Undersigned's dnsiinated Mellon Checking Account through Bank-by-Phone or Business Bank-by-Phone, such parson or entity is also authorized to borrow money through the Linc of Credit by thc Business Banking Telephone Hotllne. Undersigned further understands and agrees that Undersigned must repay all amounts borrowed by such parson(s) or entity(ies) as though Undersigned had borrowed such money. Undersigned understands that Bank; upon Undersigned's written request, will exclude any of Undersigned's Mellon Bank aceounts from Bank-by-Phone or Business Bank-by-Phone, and it is recommended that Undersigned make such request if necessur~' for thc protection and security of Undersigned's If Bank allows borrowings above the amount shown above, all the terms of this Note will apply to thee borrowings. By signing this Note, Undersigned hereby requests Bank to permit the borrowing of money through Undersigned's Linc of Credit by the use of Mellon Bank's Business Banking Telephone Hotline and agrees that such borrowings may be effected by one person, cve, n if any agreement, signature card, instruedons or rcr, ointtons for thc Line of Credit provide for borrowings over two sl?_~_ urea m' other special arrangemanta. Each borrowing will usually be processed on the same day that transfer instructions were given via the Business Banking Telephone Hotlinc, and be available in the designated Mellon Checking Account on the first business day follOWing the day that transfer instructions were given via the Business Banki%o Telephone Hotllne; however, Bank reserves thc right to not make a borrOWing available in the designated Mellon Checking Account until a date after the busine.~$ day following the day that transfer instructions were given. For example, if transfer instructions are given on Monday, thc borrowing will normally be available in Undersigned's designated Mellon Checking Account on Tuesday;, however, Bank reserves the right to not make the borrOwing available until Wednesday, or later. (This example assumes that Monday, Tuesday and Wednesday were all business days. Saturdays, Sundays, and any holidays or other days on which Bank is gnncrally.not open for business will not be considered business days.) Undersigned agrees that Bank inay, at its option, record telephone calls made to effect a borrowing from the Line of Credit. Bank will not be liable for acting in good faith upon telephone orders or requests which Bank believes in its sole discretion were made or authorized by Undersigned. Bank will be entitled to presume that all telephone caners who accurately identify Undersigned's Line of Credit account number and the designated Mellon Checking Account number are authorized to conduct the transactions described in this Note, even if the designated Mellon Checking Account and/or any borrowing authorization or resolution provides for any covered action to be made by more than one parson acting together, or for other special arrangements. Undemgned agrees that this Note amends any other agreement, instruction, resolution or authorization of Undersigned requiring more than one parson to act with regard to the Line of Credit or the designated Mellon Checking Account or any other account linked to either the Line of Credit or the designated Mellon Checking Account. Undersigned further agrees that this Note amends (and will be deemed to override) any such agreement, instruction, resolution or authorization made or given by Undersigned in the future as such agreement, instruction, resolution or authorization would otherwise relate to this Note unless that agreement, instruction, resointion or authorization is received by Bank and specifically indicates that it is intended to modify this Note. All telephone instructions executed by Bank in good faith and in accordance with the procedure described above will be binding upon Undersigned. Notwithstanding any other provision of this Note, Undcrsigned's ability to borrow raoney from Bank through the Line of Credit shall not be effective until an authorized representative of Bank has signed this Note to evidence Bank's approval of the Line of Credit. Con~rac~ua/I:tate(a); Repayment Schedules. [] Interest at a rate par annum which is above Bank's Prime Rate, such rate to change from time to time as of the effective date of each announced change in such Prime Rate, shall be paid when principal payments are due. Principal shall be paid in __ consecutive monthly installments equal to 1/ th of the principal balance hereof outstanding on the Billing Date, commencing on , and continuing thereafter on thc day of each month; provided, however, that each monthly installment of principal will be no le~ than $100.00, and provided further that the amount of the monthly inam!!ment of principal shah never exceed the amount of principal actu~ outstanding Thc entire balance of the indebtedness, if not soone paid, shall be due and paynble on . (Thc day of [~ principal and/or interest shnll be paid, as de~ Date".) I~ ~-c'_.~ The Billing Date shall be the Duc Date. [] The Billing Date shall be ~ days before the Due Date. [] '~-xT-C~'~ The principal balance hereof, together with all accrued and unpaid interest, shall be paid on 3-2/15/2003, and interest at a rate per annum which is 0.75% above Bank's Prime Rate, such rate to change from time to time es of the effeet/ve date of each announced change in such Prime Rate, shall be paid on the 15TB day of each month commencing on 03-/1S/3-999 . [] The principal bbalance hereof, together with all aco'ued and unpaid interest, shall be paid on , and interest at a rate per annum which is % above the CD Rate, such rate to change from time to time as of the effective date of each change in or resetting of the CD Rate, shall ba paid on the day of each month commencing on [] In no event shall the rate charged on this Note exceed the lesser of __% per annum or the highest rate permitted by applicable law. Uedersigned agrees that Bank may, at its option, renew or extend the Line of Credit by sending or delivering notice of such renawal or extension to Undersigned. Such notice shall set forth a new Maturity Date for the Line of Credit and any other changes to the terms and conditions of the Line of Credit. Except as specified in such notice, all terms, conditions and provisions of this Note shall remain unchanged. Undersigned further agrees that Undersigned will be deemed to have accepted such renewal or extension if Undersigned (a) borrows money under the Line of Credit after the Maturity Date that was in effect prior to such renewal or extension, (b) makes any payments due under the Line of Credit after the Maturity Date that was in effect prior to such renewal or extension (other than payment in full of all indebtedness due under the Line of Credit), or (c) othetnvise fails to notify Bank in writing that Undersigned deelines or rejects such renewal or extension within thirty (30) days after Bank sends or delivers notice of renewal or extension. Undersigned shall pay Bank concurrently with the execution and delivery hereof, or Undersigned previoualy has paid Bal~k, an origination fee of $ 3., 200.00, which includes the first year's aonual servicing fee for the Line of Credit and a fee to compensate Bank for its underwriting, origination and administration of the Line of Credit. The origination fee shall ba deemed fully earned by Bank on the date hereof. In addition, Undersigned will pay Bank an annual servicing fee of $ 75.00 , payable in advance, on or after each anniversary of the date hereof, to compensate Bank for its sen, icing and administration of the Line of CrediL The fees de~rthed in this paragraph shall not be refunded and are in addition to any other fees, costs or expenses which may be due and payable hereunder. Unless Undersigned has authorized Bank to take payments out of a Mellon Checking Account, aa set forth below, Undersigned will mail or deliver to Bank the amount hilled by Bank each month. Undersigned will mall or deliver the payments so that Bank receives all payments no later than the due dates shown on the bills. [] ~<~ Undersigned authorizes Bank to take all payments of principal and/or interest and/or other amounts due under this Note out of Undersigned's Mellon Checking Account Number 8263485 , titled in the name(s) of HARRIS D!~r. IVER¥ .~I~RVlC~St INC. on or after the due ~ate each month. Undersigned ~ keep a surfs:lent balance in this account to cover the full amounts of all required payments. At its option, Bank may terminate Undersigned's ability to use this sen/ice. This authorization shall remain in effect until revoked by Undersigned in writing or until the Line of Credit is paid in full and terminated or until Bank has terminated Undersigned's ability to use this service, as the case may be. Prior to maturity, while th~ authorization h in efina and provided that Undersigned kee[~ a sufficient belance in thh account to c~er the full amounts of ail required payments, the Contraaual Rate(s) ~ be reduced by 0.25% per annum. This authomation will be effeaive even though ~ Note and ~he account may be titled in different ~rsions of Undersigned's name. If the ori~nal principal amount of this Note shown above is in excess of $10,000.00, or if Undersigned is a corporation, interest shall be calculated on the basis of a 360-day year and actual days claimed. If the original principal amount of this Note shown above is $10,000.00, or less, and Undersigned is not a corporation, inter~t shall be calculated on the basis of a 365-day year or 366-day year, as thc case may be, and actual days elapsed. 'Prime Rate" shall mean the interest rate per annum announced from time to time by Bank as its Prime Rate. The Prime Rate may be greater or less than other interest rates charged by Bank to other borrowers and is not solely based or dependent upon the interest rate which Bank may charge any parll.anlar borrower or class of borrowers. If a single certificate of deposit is held by Bank as collateral security for the indebtedne~ evidenced by this Note, as more fully de~cibed in the Assj~cmment of Deposit Account expr~ referring to this Note, "CD Rate" shall mean the interest rate paid by Bank on such certificate of deposit (the "Certificate"), said CD Rate to be reset by Bank at each renewal of the Certifinnte. If more than one certificate of depeait is held by Bank as collateral security for the indebtedness evidenced by this Note, as more fully described in the Assignment(s) of Deposit expressly referring to this Note, "CD Rate" shall mean the highest of the interest rates paid by Bank on such certificate~ of dep(~it (the "Certificates"), said CD Rate to be reset at each ranewal of each Certificate. Late (:'barge. If any payment (other than the final payment) is not paid within 15 calendar days after it is due, Undersigned will pay a late charge of the greater of $25.00, or three percent (3%) of the unpaid portion of the scheduled payment due (regardless of whether the payment due consists of principal and interest, principal ol~y or interest only). If the final paymont is not paid within 15 calendar da~ after it is due, Undersigned will pay a late chargn of the greater of $25.00, or threa percent (3%) of an amount equal to the unpaid portion of a hypothetical payment calculated in accordance with the repayment schedule described above as though such payment were not the final payment (regardless of whether the final payment consists of principal and interest, principal only or interest only). Such late charge shall be in addition to any increase made to the Contractual Rate(s) applicable to the outstanding balancu hereof as a result of maturity of this Note or otherwise, as well as in addition to any other applicable fees, charges and costa. DelauitRat~(a);Po~t-I~lur~FR~t~(s). Upo~ the ~en~ of a~ E~nt of ~ult (~ de~ ~ ~ No~), nt B~k's ~fion, Ete~t s~ a~e at a rate ~ to ~ ~nt (2%) ~r ~um a~ thc ~tmaual ~s) un~ ~e ~r~r of ~ ~te t~t such E~nt of De~ult ~ ~n ~ or un~ and ~u~g ~c ~te of matu~ beef. A~er maturity, whether by acceleration or otherwise, interest shall accrue at a rate two pareant (2%) par annum above the Contractual Rate(s) until all sums due hereunder am paid. Interest shall continue to accrue after the enU3, of judgment (by confession or otherwise) at the Contractual Rate(s) until all sums duc hereunder and/or under the judgment arc paid, except that after maturity or, at Bank's option, upon the occurrence of any Event of Default, interest shall accame at a rate equal to tn,n) percent (2%) per annum above thc Contractual Rate(s). Books and Records; ~ime o~Es~enea. So long as Bank is the holder hereof, Banks books and records shall be presumed, except in the case of manifest error, to accurately evidence at all times all amounts outstanding under this Note and the date and amount of each advance and payment made pursuant hereto. "Th~ prompt and fuitlfful performance of all of Undcrsigned's obllgatiom hereunder, including without limitation time of payment, is of the essence of this Note. Secunty Interest, Setofl end Assignments. To secure all amounts at any time owing or payable under this Note and Undersigned's obligations hereunder, as well as to secure all c~ts and expemes incurred by Bank in the colleaion or enforcement of this Note or the protection of any colfateral securing this Note (including without limitation all advances made by Bank for ~xes, levie~ insurance, filing fees, and repairs to or maintenance of said collateral), Undersigned hereby srants to Bank a sea]riP/interest in, lien upon, and right of setoff against, all deposit accounts, credits, securities, moneys, or other property of Undersigned wfach may at any time be in the possession of, del/vered to, or owed by Bank, including any proceeds or returned or unearned premiums of insurance, and the proceeds of all thc foregoing properp/. Other properly, real or personal, may secure this Note, as set forth in other documents and agreements. Undersigned acimowiedges and agrees that Undersigned shall renew, or cause to be renewed, the Cert/fieate(s), if any, until the indebtedness evidenced by this Note has been paid in full. Undersigned further agrees that Undersigned will execute, or will cause to be executed, upon demand by Bank any financ/ng statements or other documents, including, without limitation, additional Assi~ments of Deposit Aceount, which Bank may deem necessary or desirable to ev/denee, perfect or maintain perfection of the security interests created in the Certificate(s) and any renewals, replacements and substitutions thereof. Additional Terns and Conditions 1. Cov~r~,~. Undersigned covenants and agrees that until all indebtedness nv/danced hereby has been paid in full and until Undersigned's ability to borrow hereunder has terminated, Undersigned shaft: (a) mainta~ at ail times a positive tang/bin net worth; (b) (I) have ali Em~iroamental Permits neeessary f~r the conduct of each of Undersigned's businesses and opamtions, (2) conduct each of Undersigned's bus/nm and operations in material compliance with all applicable Environmental Laws and Environmental Permits, (3) not permit to exist any event or condition that requires or is likely to require Undersigned under any Environmental Law to pay or expend funds by way of frees, judgments, damages, cleanup, remediation or the like in an aggregate amount, the payment of which could reasonably be expected to interfere substantially with normal operations of Undersigned or materially adversely affect the finandal condition of Undersigned, (4) notif~ Bank promptly upon becoming aware of any pending or threatened proceeding, suit, investigation, allegation or inquiry regarding any alleged event or condition that, if r"-~:)lved unfavorably to Undersigned or any of Undersigned's subsidiaries or affdintas, is likely to cause Undersigned or any of its subsidiaries or affflintes under any Fmv/ronmantaI Law to pay or expend funds by way of fines, judgments, damages, cleaning, remediation or the like, and (5) provide at Unders/gned's cost, upon request by Bank, certifications, documentation, copies of pleadings and other information regarding thc above, all in form and content satisfactory to Bank; (c) conduct each of Undersigned's bnsinesses and operations in material compliance with all federal, state or local laws, statutes, regulations, rules, ordinances, court or administrative orders or decree, or private agreements or interpretations, now or hereafter in existence, directly or indh'ectly relating to or affecting Undersigncd's businesses or operations; (d) use thc prneneds of the Linc of Credit evidenced hereby only for business purlx~e(s) spedfled to Bank at or prior to the execotion hereof;, (e) promptly noti~ Bank in writing of any change in Unders/gned's tesidence or Chief ~xceative Office; (0 purchase and mainta/ll policies of insurance (including flood /nsur~na~) to protect against such risks and casualties, and in such amounts, as shall be required by Bank and/or applicable law, which policies shall (1) be in form and substance satisfaaory to Bank, (2) at Bank's option, dnsignate Bank as Ires payee and/or ns additional insured, and/or contain a lender's Ima payable endorsement, and (3) be (or certificates evidencing mine shall be) de4x~ted with Bank; (g) (1) maintain and keep proper records and boo~ of account in conformance with generally accepted accounting principles applied on a consistent basis in which frill, true and conect cntties shall lac made of ail Undersigned's dealings and business nfl'airs, (2) provide to Bank at Undersigaed's cost, upon Bank's request, finnncfal or other information, documentation or certifieatiom (including without limitation annual and periodic balance shacts and ineamc statements, paraneal financial statements, federal incumc tax returns, inventory reports (including a description of raw materials, finished goods nod the a~ing thertx3f, as applieablc), and accounts receivable and payable aging reports), all in form and content satisfactory to prank; and (3) permit, upon request by Bank; any of' the officers, employees or representatives of Bank to visit and inspect any of Undersigned's properties and locations and to esamine its books and records and discuss the affairs, finances and accounts of Undersigned with rcpr'-~ntethtes thereof, as often as Bank may request; (h) provide additional collateral at such times and having such valna as Bank ~ request, if Bank shall have reasonable grounds for belie,Aug that the vaioe of the collateral sneering the indebtedness evidenced by this Note has become insufficient to secure said indebtedness; (i) pay, upon demand by Bank, (1) all costs and fees pertaining to the filing of any financing, continuation or terminn~ioo statcmants, mortgages, satisfaction piecns, judgments and any other type of doeament which Bank deems necessary or desirable to be filed with regard to secority interests which secure the indebtedness cvidanced hereby, regardle, ss of whether such security interests were granted by Undersigned, and (2) all c~ts and expenses incurred by Bank in cuancction with any cullatcral securing this Note (including without limitation all advances made by Bank for taxes, levies, insurance, repairs to or maintenance of' said collateral, appraisal or valuation of said collateral, and dctcrn~tion Of flood bnTmd), regardless of whether such cullateral is owned by Undersigned; and (j) pay, upon demand by Bank, all amounts incurred by Bank in connection with any action or proceexling taken or commenced by Bank to enforce or celica this Note, including attorney's fees equal to thc lesser of (1) 20% of the outstanding principal halanee and interest then duc hcreouder or $500.00, whichever is greater, or (2) the ma:dmum amount permitted by law, plus attorney's costs nod all costs of legal proceedings. 2. EmntsofDdnult. The oceurrenee of any of the following shall constitute an "Event of Default" hereunder: (a) default in payment or performance of any of the indebtedness or obligations nv/denned by this Note or any Other evidence of liahifity of Undersigned to Bank; (b) the breach by any Obligor (defined as Undersigned and each surety or guarantor or any of Undersigned's liabilities to Bank as well as any person or entity granting Bank a securip/interest in property to secure any indebtedness e~/denced hereby) of any covenant contained io tiffs Note or in any separate security, guarantee or suretyship agreemant bctween Bank and any Obligor, thc occorrence of any default hereunder or under the terms of any such agreamant, or thc discovery by Bank of any false or mislending representatiou made by any Obligor harein or in any such agrecmant or in any other information submitted to Bank by any Obligor;, (c) with respect to any Obligor:. (1) death or incapacity of any individual or gencrnl partner, or (2) dissolution of any partnership or corporation; (d) any a~i.t*nment for the benefit Of creditors by any Obligor; (e) insoiveney of any Obligor; (ti the firing or commencement of any petitioo, action, case or proceeding, voluntary or involuntary, under any state or federal taw regarding bnnk'ruptcy, inanlvency, reorganiTation, rceeivership or dissolution, including the Bankruptcy Reform Act of 1978, as amended, by or a~vn!nst any Obligor;, (g) default under thc terms of any lease of or mortgage on the premises where real or persoodi property securing thc indebtednees evidenced by this Note is located; Co) the garn~cnt, tax asgessment~ attachment or taking by governmental authority or other creditor of any property of any Obligor which is in Bank's posen or which constitutns secutip/ for any indebtedness evidenced hereby;, (i) entry of judgment against any Obligor in any court of record; 0) thc essessmant against any Obligor by thc Internal Revenue Service or any other federal, state or local tn:dug Page 3 of 6 authority of unpaid taxes, or the issuance of a levy or the entering of a lien in connection therewith; (It) change in control of or transfer of any interest in any Obligor (other tl~n an Obligor who is an individual); (l) a determination by Bank, winch determination shall be conclusive if made in good faith, that a material adverse change has occurred in thc financial or business condition of any Obligor; (m) thc maturity of any life insurance policy held as collateral for thc indebtedness evideaced by this Note by reason of thc death of thc insured or otharv,/se; (n) the ~tion, termination, cancellation, denial of liability, or thc attempt Of any of the foregoing, by any Obligor of any obligation or liability wbatsocver of thc Obligor to Bank, including without I/mitatinn any security, gnarantea or suretyship agreement; or (o) default by Undersigned in the payment of any indebtedness of Undersigned or in the performance of any of Undersigned's obligations (other than indebtedness or obligations er/danced by this Note or any other er/deuce of liability of Undersigned to Bank) and such default shall continue for more than any appficable grace period. 3. Accelem#on; Remedies. Upon the occurrence of any Event of Default: (a) at its option, Bank may immediately and without notice temporarily stop allowing the borrowing of money, or cicec Undersigned's Line of Credit and permanently stop allowing thc borrowing of money;, (b) all amounts due under tins Note, including the unpa/d balance of principal and interest hereof, shall become immediately due and payable at the option of Bank, without any demand or notice whatsoever;, and (c) Bank may immediately and without demand exercise any of its rights and remedies granted herein, under applicable law, or which it may otherwise have, against Undersigned or otherwise. Notwithstanding any provision to the contrary contained herein, upon the occurrence of an Event of Default as de.%'ribed in Section 2(0 hereof, all amounts due under this Note, including without limitation the unpaid balance of principal and interest hereof, shall become immediately due and payable, without any demand, notice or further action by Bank whatsoever, and au action therefor shall immediately accrue. 4. Bank's Rights. Undersigned hereby authorizes Bank, and Bank shaft have the continuing right, at its sole option and discretion, to: (a) do anything which Undersigned is required but fails to do, and in particular Bank may, if Undersigned fails to do so, obtain and pay any premiums payable on any policy of insurance required to be obtained or maintained hereunder, (b) d/rea any ir~urer to make payment of any insurance proceeds, including any returned or unearned premiums, directly to Bank, and apply such moneys to any indebtedness or other amount cadenced hereby in such order or fashion as Bank may elect; (c) pay the proceeds of the Line of Credit evidenced by this Note to any or all of the Undersigned individually or jointly, or to such other person(s) as any of the Undersigned may direct; and (d) add any amounts paid or incurred by Bank under Scctiou l(i), Scedon 10) or Section 4(a) to the principal amount of the indebtednass evidenced by this Note. 5. A~o#za#on to Bom)w. Undersigned hereby represents, warrants, certifies and covenants as follows: (a) If Undersigned is a corporation, that the person(s) Si~tming below hold(s) the office(s) indicated below (and continue to hold such office(s) until Ban~ has re~iv~ noticu to the contrary in writing f~om Undersigned), and that the Board of Directors of Undersigned has adopted rasolutious providing that: (1) the person(s) executing and delivering this Note on behalf of Uedersigned is/are authorized (i) to incur indebtedness and obligations on bahalf of Undersigned lay borrowing or making other finnn~l arrangements with Bank from time to time, upon terms and conditions as they in their sole discretion deem desirable, (fi) to make, execute and deliver promissory notes, letter of credit agreements, security agreements, assignments, mortgages and all other documents required by Bank in connection with thc incurring of indebtedness or obligations, and (ill) to assign and pledge as collateral security for any such indebtedness or obligations, now or bereaflcr existing, any real or personal property of Undersigned; (2) the actions of any one or more officers of Undersigned in borrowing money from l~nk heretofore for thc account of Undersigned, in assigning or pledging any of Undersigaed's property for thc payment thereof, or in doing any other act in connection therewith arc hereby ratified, confu'med and approved; and (3) said resolutions shall have the force of a continuing agreement with Bank, and shall be binding upon Undersigned until a resofadon amending them shall have bean duly and legally adopted and Bank furnished a certified copy thereof. (h) If Undersigned is a parmcrship, that (1) Undersigned's name shown below is a trade name of Undersigned*s fim~ used in the conduct of an unincorporated business owned entirely by the persons signing this Note on behalf of said partnership; (2) the partners exeeudog and delivering this Note arc authorized (i) to incur indebtedness and obligations on behalf of Undersigned by borrO~ng from or mains other finandng or credit accommodations with Bank from time to time, upon such tcrrda and conditions as they in their sole discretion deem desirable, (ii) to make, execute, and deliver promissory notes, letter of credit agreements, security agreements, assignments, mortgages and all other documents required by Bank in connection with the incurring of indebtedness or obligations, and (iii) to a~gn and pledga as collateral security for any such indebtednass or obligations, now or hereafter e~ting, any real or personal property of Undersigned; (3) the actions of any one or more partners of Unders/gned in borrowing money from Bank heretofore for the account of Undersigned, in assi~ening or pledging any of Undersigned's property for the payment thereof, or in doing any other act in connection therewith are hereby ratified, confirmed, and approved; (4) notwithstanding any modification or termination of the power of any of the partners to represent said firm, whether by expiration of the partnership agreement, by death or retirement of any partner, or the acuession of one or more new partners, or otherwise, and notwithstanding any other notice thereof Bank may receive, this authority shall continue to be binding upon each of the Undersigned individually and upon their death or retirement of any partner, or the accession of one or more BeV/partllcrs, or otherwise, and notwithstanding any other notice thereof Bank may receive, this authority shall continue to be binding upon each of the Undersigned godly/dually and upon their legal repr-"~ntatives, and upon Undersigned and its successors, until Bank has received notice in writing to the contrary signed by one of the Undersigned or by Undersigned's duly authorized agent (Receipt of such notice will not relieve any partner of any liability arising from obligations incurred prior to Bank's receipt of such notice.), and (5) nothing herein shall be construed to limit the rights granted to a panner by iow or by the partnership agreament, but all rights 8ranted herein shall be in addition to such rights. 6. Definitions; Mlseellaneoue Provfsions.(a) Undersigned waives (except where requastcd hereby) notice of action taken by Bank; and hereby ratifies and confirms whatever Bank may do. Bank shall be entitled to exercise any right nntwith~tanding any prior cxereise, failure to excrciso or delay in exercising any such risht. Co) Bank shall retain thc lien of any judgmant entered on account of the indebtedness evidenced hereby. Undersigned warrants that Undersigned has no defense whatsoever to any action or proceeding that may be brought to enforce or realize on any such judgment. (c) If any provision hereof shah for any reason be held invalid or unenforceable, no other provision shall be affected thereby, and this Note shall be construed as if the invalid or unenforceable provision had never been a part of it. The descriptive headings of this Note arc for convaninnce only and shall not in any way affect the meaning or construction of any provision hereof. (d) Thc rights and privileges of Bank contained in this Note shall inure to the benefit of its soc~sora and assigns, and the duties of Undersigned shatl bind all beira, personal represontatives, sucues~o~ and ass/gas. (e) This Note shall in ali respects be governed by the laws of the state in which this Note is payable (except to the extent that federal law goveros). (f) Pave 4 of 6 ~ndcrsigned hereby irrevocably a~ ~ ~d ~ ~cr to Unde~i~ or any ~tum~ or u~ p~u~ of ~umn~ ~u~ to ~ ~m~ hereunder. Unde~i~ hcrc~ ac~l~g~ t~t holder he~f ~ attom~-~-~a ~ ~ble and ~ ~upl~ ~th an ~ter~t. (g) Unde~i~ ~ to ~ ~ mon~ which may ~me ~ble on ~ ~ of ~u~ r~uk~ W ~ ma~ under ~ N~e, ~u~g ~ rctum~ or un~m~ ~miu~ (h) "~en~ f~e~, s~te or l~l e~man~l ~, s~tute, ~Mfion, mia, ordeal, ~u~ or ad~tm~ o~er or d~, or p~te a~ment or Mte~mfion, n~ or herder M ~ten~, relating to tbs manufa~ure, ~tfibution, la~ng, u~, hand.g, ~ll<tion, storage, ff~at, d~ or othe~ of H~rdous Summa, or ~ a~ ~ .~lagng to ~Buti~ or pmt~tion of tbs e~oment or ~b~c h~l~. (i) '~romen~l P~it' m~m a~ f~eral, s~te or l~l ~it, li~ or antho~fion ~u~ under or E~onmenml ~troleum and ~ffoleum ~u~, mdi~ ~te~, ~t~, radon, I~d ~n~MMg mte~, ~ or any matefl~ or suMmn~ de~ ~ or Mclud~ M the d¢~fioa of material," ~ltumn~," "~llution," or te~ of s~lar m~g, te~ are u~d in a~ En~romanml ~w. (k) '~ef ~uti~ Offi~" m~ the pM~ ~om w~ch the ~ ~R of tbs busin~ o~ratio~ of an enti~ ~ manage. (1) 'Unde~i~ed" refe~ indi~dual~ and ~llect~ to all make~ of th~ Note, ~cluding, in thc case of any partncrship, all general partners of ~uch parmcrship individually and collcctively, wbethcr or not such partners sign below. Undersigned shall each be jointly and severally bound by the terms hereof, and, with respect to any parmcrship executing this Note, each general partner shall be bound hereby both in such general parmer's individual and 7. Affidavit of Business Loan. (This Affidavit is not applicable if Undersigned ia a corporation.) Undersigned, being duly authorized, depose(s) and say(s) under penalty of perjury that Undersigned: (a) Ia/Are engaged in business asl-I Owner(s), [] General Parmer(s) of: (name and nature of business) (b) Hereby make(s) application to Bank for a loan, thc proeex~ of winch will be utilized for the purlx~e(s) of (c) Exercise(s) actual control over the managerial decisions of thc business. (Remainder of page intentionally left blank) Page 5 of 6 8~ Confes,~ion of Judgmen~ UNDERSIGNED HEREBY EM~OWERS TH~ PROTHONOTARY OR ANY ATrORN~Y OF ANY COURT OF RECORD TO APPEAR FOR UNDERSIGNED AND TO CONFESS FUD~MF.~Fr AS O~'t~N AS N~CESSARY AGAINST UNDERSIGNEI~ IN FAVOR OF TH]~ HOLDER HEREOF, REGARDLESS OF WHETHER ANY EVENT OF DEFAULT HAS OCCURI~D, AT AN~ ~ AND AS OF ANY TERM, FOR THE OUTSTANDING PRINCIPAL BALANCE HEREOF PLUS INTEREST DUE UNDER THE TERMS FUe;KEOF AND ALL OTHER AMOUNTS DUE I'II~.EUNDER, TOGETHER wrrH COSTS OF LEGAL PROCR~DINOS AND AN ATrORNEY'S COMMISSION EQUAL TO THE LESSER OF (A) 20% OF TIlE INTERF_5'T THEN DUE HEREUNDER OR $500.00, W+rilCHEVER IS GREATER, OR 05) THE MAXIMUM AMOUNT PERMrrrIc;D BY LAW, ~vrlH RELEASE OF ALL ERRORS. UNDERSIONED WAIVES ALL LAWS EXEMlrI'ING REAL OR PERSONAL PROPERTY FROM EXECUTION. By signing.this Not% Undersigned agrees to aH terms of this Note and swenr% under penal~ of perjury (as set forth in 18 Pn.C.S.~ 4904~ if governed by Pennsyivnnia Inw), to the Affidavit of Business Loan (if ~ompleted) set forth In Se~lon 7 of t~s Note. Witness the due execution hereof under seal. Attest/Witnes. s: Business Address: 7~W~ 111 S lOTH STREET LEMOYNE PA 17043 (Corporate Seal) ~oration or Other Entity: IS DELIVERY SERVICES, INC. x (Seal) By:(Signature/Title) X (Seal) By:(Signature/Title) X (Seal) Mellon Bank. N.A. By:. (Signature and Title~.~ . . Mellon Bank, N~. Mellon Bank (DE) National A~ociation Page 6 of 6 ............................ With Power to Confess Judgment 1. To induce Mellon Bank. ~,~, ("Bank") to transact business and accommodations with HARRIS DELIVERY SERVICES. INC. to make credit ("Debtor"), Undersigned, as defined below, does hereby guarantee, absolutely and unconditionally, and does hereby become surety for the full and timely payment of the principal of, and interest on, all obligati6ns, debts, dues, instruments, liabilities, advances, judgments, damages, losses, claims, contracts, and choses un action, of whatever nature and however arising, past, present or future, and any and all extensions and renewals thereof ia whole or in part, whether direct or indffect, absolute or contingent, voluntary or involuntary, now due or to become due, and whether owed to Bank from Debtor as drawer, maker, endorser, assignor, guarantor, surety, or otherwise whatsoever ("Obligations"), except this Guaranty and Suretyship Agreement ("Agreement') shall not extend to any obligation of Debtor which is defined as 'consumer credit" by Federal Reserve Board Regulation Z, 12 C,F.R. ~ 226.1 et seq., and is not exempted from the application of that Regulation. Undersigned will reimburse B~nk or any subsec~luent holder ~er. eof fgr a~ experts? incurred, and not remabursed by ~,evtor, m couection ot any Obligations. ff this Agreement is referred lo.r, ~llectinn to an attorney, Undersigned will pay an attorney s tee equal to the lesser of (a) 20% of the amount due or $500, whichever is greater, or Co) the maximum amount pc. ~r~,_'tted by law, and costs of legalproceedings. The Undersigned s Obligations hereunder shah be payable at Bank's offices at Harrisburg, Pennsylvania ~n' Th. is is a guara?y of payment and not merely of collection. the event ot any default by Debtor in payment or othe~vise on any Obligations, Undersigned will pay all or any portion of Obligations due or thereafter becomin~ due, whether by acceleration or otherwise, without defalcatton or offset of any kind, without Bank first being required to make ~emand upon Debtor or pursue any of its rights against ~ebtor, or against any other person, including other guarantors; and without being required to liquidate or realize on any collateral security. In any right of action accruin~ to Bank, Bank may elect to proceed against (a) Undersigned together with Debtor; (b) Undersigned and Debtor individually; or (c) Undersigned only without having first commenced any action against Debtor. .3.. Undersigned hereby grants to Bank a security interest in, lien..upon, and fight of setoff against, all deposit accounts, ~eaits, securities, moneys or other personal property of undersigned which may at any time be in the possession of, delivered to or owed by Bank, including any proceeds or returned or unearned premiums of insurance, and the proceeds of all the foregoing property. 4. Bank, without notice to Undersigned, may deal with Obligations and any collateral security theregot in such manner as Bank may deem advisable and may renew or extend Obligations or any part thereof; may accept partial payment, or settle, release, or compromise the same; may demand additional collateral security for Obligations, and substitute or release the same; and may comp. romise or settle with or release and discharge from liability any of Undersigned or any other guarantor of Obligations, or any other person liable to Bank for all or part of the Obligations; all without impairing the liability of Undersigned hereunder. 5. Undersigned hereby unconditionally waives: (a) notice of acceptance of this Agreement by Bank and any notice of the incurring by Debtor of any Obligations; Co) presentment forpayment, notice of nonpayment, demand, protest, notice of protest and notice of dishonor or default to any party including Undersigned; (c) all other notices to which Undersigned may be entitled but which may legally be waived; (d) demand for payment as a condition of liability under this Agreement; (e) any disability of Debtor or defense available to Debtor, including absence or cessation of Debtor's liability for any reason whatsoever; (O any defense or circumstance which might otherwise constitute a legal or equitable discharge of a guarantor or surety; (g) all fights under any state or federal statute dealing w~th or affecting the rights of creditors; and (h) until Obligations are paid in full, any right to subrogation or realization on any of Debtor's property, including participation in the marshalling of Debtor's assets. 6. This Guaranty and Suretyship Agreement and Undersigned's payment obligations hereunder shall continue to be effective or be reinstated, ns the case may be, if at any time payment of any of Obligations is rescinded or must othenvise be restored or returned by Bank, ali as though such payment had not been made. Bank's good faith determination as to whether a payment must be restored or returned shall be binding on Undersigned. 7. Until Obligations are paid in full, Undersigned hereby unconditionally subordinates to Obligations all present and future debts, liabilities, or obligations of Debtor to Undersigned, and all amounts due under such debts, liabilities, or obligations shall be collected and paid over to Bank on account of Obligations. Understgned, at Bank's request, shall execute a subordination agreement in favor of Bank to further evidence and support the purpose of this Paragraph 7. 8. Undersigned warrants to Bank: (a) no other agreement, representation or special condition exists between Undersigned and Bank regarding the liability of Undersigned hereunder;, nor does any understanding exist between Undersigned and Bank that the Obligations of Undersigned hereunder are or will be other than as set out herein; and Co) as of the date hereof Undersigned has no defense whatsoever to any action or proceeding that may be brought to enforce thia Agreement. 9. Undersigned will provide financial information to Bank upon request, including balance sheets and income statements, in form and content satisfactory to Bank. 10. No failure or delay on the part of Bank in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of Page 1 of 2 f any fight, power or privilege hereunder preclude any other or further exercise thereof, or the exercise of any other fight, power or privilege. Failure by Bank to insist upon strict performance hereof shall not constitute a relinquishme~ of ItS right to demand strict performance at another time. Receipt by Bank of any payment by any person on Obligations, with knowledge of a default on any of Obligations or of a breach of this Agreement, or both, shall not be construed as a waiver of the default or breach. 11. THIS AGREEMENT IS A CONTINUING GUARANTY AND SHALL CONTtNUE IN FORCE UNTIL RECEIPT BY BANK OF WRrrrl~N NOTICE OF REVOCATION BY UNDERSIGNED OR RECEIPT OF NOTICE OF UNDERSIGNED'S DEATH; AND IN EITHER OF SUCH EVENTS THIS AGRI~.!~.MENT SHALL CONTn~JE IN E~P~:CT NEVERTHELESS UNTIL ALL EXISTING OBLIGATIONS OF DEBTOR TO BANK ARE PAID; IT BEING CON'r~MPLATED THAT DEBTOR MAY CREATE OR INCUR OBLIGATIONS, REPAY AND SUBSEQUENTLY CREATE OR INCUR OBLIGATIONS WITHOUT NOTICE TO UNDERSIGNED; AND UNDERSIGNED, BY PERMrtTING THIS AGREEMENT TO REMAIN IN EP'P~CT, SHALL BE BOUND. 12. ThE Agreement is freely assignable and transferable by Bank; however, the duties and obligations of Undersigned may not be delegated or transferred by Undersigned without the written consent of Bank. The rights and privileges of Bank shall inure to the benefit of its successors and assigns, and the duties and obligations of Undersigned shall bind Undersigned's heirs, personal representatives, successors and assigns. 13. If any provision hereof shall for any reason be held invalid or unenforceable, no other provision shall be affeeted thereby, and this Agreement shall be construed as ff · c invalid or unen~rcea~ ~ision had never been a ~ of iL 14. As used herein, *Undersigned* refers individually and collectively to all signers of this Agreement, including in the case of any partnership all general partners of such partnership individually and collectively, whether or not such partners sign below. Undersigned shall each be jointly and severally bound by the terms hereof, and each general ~rmer of any partnership executing this Agreement shall be and hereby both in such general partner's individual and partnership capadties. 15. This Agreement shall in all respects be governed by the laws of the state where Undersigned's Obligations hereunder are payable as set forth herein. 16. UNDERSIGNED HEREBY E1VIPOI~ERS 'Iii. E; PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR UNDERSIGNED AND TO CON~'ESS JUDGMENT AS O~-ri~N AS NECESSARY AGAINST UNDERSIGNED IN FAVOR OF THE HOLDER 14p:REOF, AS OF ANY TEI~[, FOR 1B. IS ABOVE DESCRIBED OBLIGATIONS PLUS INrEREST DUE, TOGizTHP:S~ ~VI'IH COSTS OF SUIT AND AN ATrORNEY'S COMMISSION EQUAL TO 'I'nE LESSER OF (A) 20% OF AI.L SUCH OBLIGATIONS OR $~00, WHICHEVER IS GRF_AT~.;~ OR (B) THE MAXIMUM AMOUNT PERMtrr]~;o BY LAW, ~Vrrn ~k'rl.~.~qE OF ALL ERRORS. UNDERSIGNEI~ WAIVES ALL LAWS EXEMFI'ING REAL OR PERSONAL PROPERTY FROM EXECUTION. the due exe~ hereof i.lendi~g to be ega ly bou.d this ./~' day of / ~ ~ ?~o~g~s c. ~szczom~owsx~ A~dr~ss 818 INDIANA AVENUE LEMOYNE PA 17043 Witness: individual: x ~ ($~1~ Address Corporation or Other Entity A~te~t/Witne~: Bf. (Signature and 'I~fle) x x (Seal) 1~. (Siguature arid 'I~tie) x (Seal) (Corporate Seal) Business Address 0275 B 23-Z~J0369 I CL290 (01) 12109~0857 Page 2 of 2 AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA: : SS. COUNTY OF LUZERNE : I, Edward R. Walsh, Vice President, being duly sworn according to law, deposes and states that he is a Vice President of Mellon Bank, N.A.; and that he is duly authorized to make this Affidavit; and that the following is tree and correct to the best of his knowledge, information and belief; and that on January 19, 2001, the amount owed to Mellon Bank, N.A. by Thomas C. Pszczolkowski, pursuant to the Guaranty, was as follows: 2. 3. 3. Principal balance on Note ................... $106,831.11 Interest to 1/19/01 .......................... 2,897.82 Late Fees ................................. 55.67 Attorney's fees (20%) ....................... 21,957.12 TOTAL .............. $131,742.72 plus interest and costs until paid. Edward R. Walsh, Vice President Sworn to and subscribed before me this "]~day of ~ ,2001. 423988.1 50014540 EXHIBIT "B" CERTIFICATION OF COMMERCIAL TRANSACTION Edward R. Walsh, Vice Presidem, of Mellon Bank, N.A. as a duly authorized representative of Mellon Bank, N.A. deposes and says subject to the penalties of 18 Pa. C.S. §4904 relating to unswom falsification to authorities that the underlying transaction relative to this Complaint in Confession of Judgment is a commercial transaction to the best of his knowledge, information and belief. EDWARD R. WALSH, Vice President 423991.1 5001-4540 AFFIDAVIT OF LAST KNOWN ADDRESS COMMONWEALTH OF PENNSYLVANIA : : SS, COUNTY OF LUZERNE : I, Edward R. Walsh, Vice President of Mellon Bank, N.A., being duly sworn according to law, depose and say that the last known address of the Defendant, Thomas C. Pszczolkowski, is as follows: 818 Indiana Avenue Lemoyne, PA 17043 EDWARD R. WALSH, Vice President Swom and subscribed before me this 7~'*~ day of -~ ,2001. Notary Public 423994.1 5001-4540 AFFIDAVIT OF NON-MII,ITARY SERVICE OF DEFENDANTS COMMONWEALTH OF PENNSYLVANIA : : SS. COUNTY OF LUZERNE : I, Edward R. Walsh, Vice President of Mellon Bank, N.A., being duly swom according to law, depose and say that I did, upon request of Mellon Bank, N.A., investigate the status of Thomas C. Pszczolkowski with regard to the Soldiers' and Sailors' Civil Relief Act of 1940. To the best of my knowledge, information and belief, Thomas C. Pszczolkowski is not now, nor was he within a period of the last three (3) months, in the military or naval service of the United States within the purview of the aforesaid Soldiers' and Sailors' Relief Act of 1940. EDWARD R. WALSH, Vice President Sworn and subscribed before me this ~ day of -~,~f .2001. Notary Public ~2~02AH A. HOUSENICK, Notary Publi¢l 423997.1 50014540 VERIFICATION I, Edward R. Walsh, hereby certify that I am a Vice President of Mellon Bank, N.A., and that as such, have the authority to make this Verification on its behalf; and further, that the facts set forth in the foregoing Confession of Judgment and Complaint in Confession of Judgment are true and correct to the best of my knowledge, information and belief, and that the photostatic copies of the Exhibits are true and correct reproductions of the original and that the statements made in the foregoing Confession of Judgment and Complaint in Confession of Judgment are made subject to the penalties of 18 Pa. C. S. Section 4904 relating to unsworn falsification to authorities. ED~WARD R. WALSH, Vice President 424000.1 5001-4540 Release MELLON BANK, N.A. Plaintiff versus Thomas C. Pszczolkowski Defendants. of Judgment : In the Court of Common Pleas of the : County of Cumberland : Statement of Judgment : : Of 01-781 Civil : : Real Debt $106,831.11 : Interest to 1/19/01 2,897.82 : Costs 22~012.79 : Total $131,742.72 : Entered and Filed: February 2, 2001 Know All Men By These Presents That Mellon Bank, N.A., the Plaintiffnamed in the above entitled Judgment, for and in the consideration of the sum of One Dollar ($1.00), lawful money of the United States, to it paid by the Defendant above named, the receipt whereof is hereby acknowledged, does hereby forever acquit, exonerate, discharge and release from the Lien of the above entitled Judgment the following described property, to wit: See Exhibit "A" attached hereto and incorporated herewith. And It Is Further Agreed, that the Plaintiff above named will not look to the said above mentioned and described premises, or any part thereof, for payment of any part of the principal and interest of said above entitled Judgment, now or hereafter to become due, or in any way disturb, molest, put to charge or damage, the present or any future owner or owners, occupier or occupiers, of the said above mentioned and described premises, or any part or portion thereof, for or by reason of the said Judgment, or any matter, cause or thing then accruing or to arise; provided, that nothing herein contained shall affect the said Judgment or its legal validity, so far as respects all other lands and tenements of the said Defendant, situate in the County aforesaid, which are not herein expressly exonerated therefrom. In Witness Whereof, Mellon Bank, N.A. has caused this Release of Judgment to be executed this ~a,, day of March, 2001 by its attorneys of record. HOURIGAN, KLUGER &QU1NN, P.C. By: ~ 4287861 5001-3715 INCLUDED IN AND FORMING PART git THE SECURITY TITLE GUARANTEE CORPORATION OF BALTIMORE COMMITMENT NO.634147 FI LE # 404 SCHEDULE~ ~,L~, IHt)SE TWO [2l cell~ln tracts of land $1tuato th the borough of Lemoyue, [tsfmerly East Fennsboro TnWnshfp], Cumberland Geunty. PennsYlvania. Cnl~alnthg thereon the pronertv known and numbered as 916 Indts~ta Avenue, Lemolme, Pennsylvania, more Partlcularlg desctiUeH as Iogows: On tile North bY Indiana ~veftl~e. on the [ssi by West Park Itveou_e, un the South by t. Ot Ho. 33 and on tho West by Lot #o, 15, COnlainlng lilly I561 leer In frOqt on InDiana Jt~enue and extending in a southerly direction all even width one hundred th]n',/ f130) feet to Lot lie, 3~.aforesald, BEIH G Lot I(o.'[E off a Plan el tots knoWllas Washington Uelohta, s.~ld Plan bolno recordetJ IR tile Itec(~rdefs Office UT ann for Cumboriane ConntY in il~a Book 1, Page 24. liEGIN#IflG at a Point on the southern line of IndTana/~ltenuo al, the line 011ands now ;r late Herman F. XiehL known as tot lin.16 eft the herninatte; nlentioned Plan of Lots: thence In a SOutherly direction along Se western Leo o! said [ut No, 16, one hundred thin./{13Ql leal to point g n the northern line 8f tot go. 3~ off $~lg Ils n: thence In a westerly direction along the northern rtne of said Lot Ho, 34, twenty [201 feet to u point: thence in a northerly dlIectien along rifle [Jrawn parallel with Tho western rifle of Lot Ilo. 16 above menUoned to a PoilTt Oh the southern line gl Indiana Aionue; tho(ice In an easterly dlre(~tion along the southern II~e ~l indiana AVenue, twenty UTi)] leer in the place gl BEGINliltiG. BEING the eastern tweot,/t201 [eel of [et Ne. 15, Plan gl Washlngto~ B eights, recorded h~ II~e Office of Ute Recorder gl needs In and for Cumberland Cou[~tvlfl Plan nook 1, Page 24. BEING THE SAME PREMISES WHICH Thomas C. Pszczolkowski and Sharon L. Pszczolkowski (a/k/a Sharon L. Correa), his wife, by their deed dated May 9, 2000 and recorded May 17, 2000 in the Office of the Recorder of Deeds in and for Cumberland County in Deed Book 22:1, Page 368, granted and conveyed unto Thomas C. Pszczolkowski, individually TN THE UNZTED STATES BANKRUPTCY COURT FOR THE M1~DDLE DTSTRTCT OF PENNSYLVANZA IN RE: Thomas Pszczolkowski, Debtor/Movant Mellon Bank, N.A. Respondent IN BANKRUPTCY CHAPTER 7 PROCEEDING : : BK. NO. 1-01-03784 : : CUMBERLAND COUNTY : NO. 01-781 Civil : LIEN AVOIDANCE !FILED SEP 2 0 · ' HARRISBURG PA Clerk. U.S. Bankruptcy Court ORDER OF COURT FOR 3UDGMENT BY DEFAULT AND NOW, this,, ¢-~,~:0·., day of ~/~/~¢,~- , 2001, in consideration of the within Motion for Entry of Judgment by Default filed by counsel for the Debtor/Movant, the Court finds that the Respondent has failed to file an Answer or otherwise plead to the Motion for an Order Avoiding .ludicial Lien filed on August 9, 2001; and duly served upon the Respondent; therefore, the Court orders judgment by default in favor of the Debtor/Movant, thomas Pszczolkowski, and against the Respondent, Mellon Bank, N.A., to the relief requested in the Motion. IT IS HEREBY ORDERED, adjudged and decreed that the judgment lien held by the Respondent is hereby declared void in its entirety and of no further force and effect as it violates 11 U.S.C. §522(0(1) and Section 522(d) of the Bankruptcy Code as a preference. BY THE COURT; CERTIFIED FROM THE RE~ORD thisbe.. Clerk, U. ~./.~n kru ptc~y/~o u r t Per Robert 3. Woodside Chief Bankruptcy Judge OCT 1 2