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HomeMy WebLinkAbout10-2233UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE AT RNEY I.D. No. 55658 C,AY: J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant ATTORNEYS FOR PLAINTIFF 0 `=- ---s Z C-r- 3 -a ' G _ ._- G j . : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW : No. 10 - aa33 0A'V1 I -lerm ENTRY OF APPEARANCE, CONFESSION OF JUDGMENT AND PRAECIPE FOR ASSESSMENT OF DAMAGES TO THE PROTHONOTARY: Pursuant to the authority contained in the Warrant of Attorney, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Plaintiff, confess judgment in favor of the Plaintiff and against the Defendant as follows: Principal $287,240.42 Interest as of 02/08/10 $ 52,686.67 Late Charges as of 02/08/10 $ 2,661.61 Attorney's Commission (10%) $ 34,258.87 TOTAL $376,847.57 Interest continues to accrue from February 8, 2010 at a per diem rate of $43.88. UNRUH, TZ;z E & FREES, P.C. Date: c1 3110 By: John K. Fiorillo, Esquire Nancy J. Glidden, Esquire -+&q. ?o PD ?? Attorneys for Defendant ????0107 2* a-:0 8178 wee. T' UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. NO. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 : ATTORNEYS FOR PLAINTIFF PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW No. Defendant COMPLAINT CONFESSION OF JUDGMENT UNDER PA.R.C.P. 2951 1. Plaintiff, PNC Bank, N.A. (the "Bank") is a banking institution, whose address is 1600 Market Street, Philadelphia, PA 19103. 2. Defendant, John A. Earley, III ("Guarantor") is an adult individual with an address of 145 Willow Mill Park Road, Mechanicsburg, PA 17050. 3. On or about January 27, 2006, in consideration of monies lent, Infratech Industries, Inc. (the "Borrower") executed and delivered to the Bank a term note in the original principal sum of $30,000.00 (the "Note"). A true and correct copy of the Note is attached hereto and made a part hereof as Exhibit "A". r 4. On or about January 27, 2006, in order to induce the Bank to enter into the transaction evidenced by the Note, Guarantor executed and delivered to the Bank a Commercial Guaranty (the "Guaranty") wherein Guarantor agreed, among other things, to guaranty and act as a surety for all of Borrower's obligations to the Bank in connection with the Note and any other obligation of Borrower to the Bank. A true and correct copy of the Guaranty is attached hereto and made a part hereof as Exhibit "B." 5. Thereafter, on November 16, 2006, the Borrower and the Bank amended the Note. A true and correct copy of the Consent of Guarantor is attached hereto and made a part hereof as Exhibit "C." 6. Judgment has not been previously entered in any jurisdiction against the Guarantor under the Guaranty. 7. This transaction did not arise from nor is judgment being entered in connection with a consumer credit transaction or residential lease against a natural person. 8. The Guaranty has not been assigned and the Bank is still the holder thereof. 9. Borrower has defaulted on its obligations to the Bank under the Note as amended by virtue of among things, failing to make payment as and when due and Guarantor has defaulted on his obligations to the Bank pursuant to the terms of the Guaranty by virtue of various events, including without limitation, failing to cure Borrower's default. 10. As a result of said defaults, Guarantor is in default and the following amounts are immediately due and payable under and in connection with said Guaranty in connection with amounts that had been guaranteed with respect to the Note as amended as of February 8, 2010: -2- Principal $287,240.42 Interest as of 02/08/10 $ 52,686.67 Late Charges as of 02/08/10 $ 2,661.61 Attorney's Commission (10%) $ 34,258.87 TOTAL $376,847.57 Interest continues to accrue from February 8, 2010 at a per diem rate of $43.88. WHEREFORE, Plaintiff PNC Bank, N.A., respectfully requests judgment in its favor and against Defendant, John A. Earley, III in the amount of $376,847.57 plus interest from February 8, 2010 at the per diem rate of $43.88 and all costs and expenses. Respectfully submitted, UNRUH, TURNER, BURKE & FREES, P.C. Date: By: John K. Fiorillo, Esquire Nancy J. Glidden, Esquire Attorneys for Plaintiff, PNC Bank, N.A. P.O. Box 515 West Chester, PA 19381-0515 Attorney I.D. No. 55658/78961 (610) 692-1371 -3- EXHIBIT "A" PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicability of this document Z. any particular loan or item. Any item above containing "• has been omitted due to text length limitations. Borrower: INFRATECH INDUSTRIES. INC (TIN: 20-09306591 Lender: PNC Bank. National Association 145 WILLOW MILL PARK ROAD Business Banking MECHANIS8URG. PA 17050 4242 Carlisle Pike Camp Hill. PA 17001 Principal Amount: $30.000.00 Initial Rate: 9.5500% Date of Nate: January 27, 2006 PROMISE TO PAY. INFRATECH INDUSTRIES, INC ('Borrower', promises to pay to PNC Bank, National Association j"Lender'), or order, in lawful money of the United States of America. the principal amount of Thirty Thousand & 00/100 Dollars ($30,000.00) or so much as may be outstanding, together with Interest on the unpaid outstanding principal balance of each advance. Interest shag be calculated from the date of oath advance until repayment of each advance, PAYMENT. Borrower will pay this loan In accordance with the following payment schedule: Borrower will pay regular monthly payments of accrued Interest begkvilng FEBRUARY 27, 2006 and all subsequent interest payments are due on the same day of each month after that. Borrower will pay this ban in one payment of all outstanding principal plus all accrued unpaid Interest on the Eupiretlan Data. Borrower may borrow, repay and raborrow hereunder unto the Expiration Date, subject to the terms and conditions of this Note. The 'Expiration Date" shag mean JANUARY 27, 2008 or such later date as may be designated by written notice from Lender to Borrower. Borrower acknowledges and agrees that In no event will bender be under any obligation to extend or renew the loan or this Note beyond the initial Expiration Date. In no event shag the aggregste unpaid principal amount of advances under this Nate exceed the face amount of this Note. Unless otherwise agreed or required by applicable haw, payments will be applied first to any accrued unpaid Interest: than to principal; then to any unpaid collection costa; and then to any late charges, The annual Interest rate for this Note Is computed on a 3651360 basis: that Is, by applying the ratio of the annual Interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the highest Prime Rate as published in the 'Money Rates" section of The Wail Street Journal ithe "Index'). The Index is not necessarily the lowest rate charged by Lender on Its loans. If the Index becomes unavailable during the term of this loan, Lender may designate e substitute index after notice to Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.250% per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 2.250 percentage points over the Index, resulting In an initial rots of 9,500% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier then it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, Including any check or other payment instrument that indicates that the payment constitutes 'payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: PNC Bank, National Association, Attn: Doc Prep/Operations Department - BBCAC, 8800 Tinicum Boulevard 5th Floor Philadelphia, PA 19153. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $100.00, whichever is lets. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity. Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note to 7.250 percentage points over the Index. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered In connection with this Note, interest will continue to accrue on this Note aher judgment at the Interest rate applicable to this Note at the time judgment is entered- DEFAULT. Each of the following shelf constitute an event of default ("Event of Default') under this Note: Payment Default. Borrower fails to make any payment when due. Other Defaults. Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, In favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents Is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, arty assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or lorfelture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which Is the basis of the creditor or forfeiture proceeding and If Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate PROMISSORY NOTE (Continued) Page 2 reserve or bond for the dispute. Events Affecting Gusrantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself Insecure. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, without notice, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone also to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post-judgement collection services. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by taw. WAIVER OF JURY TRIAL. THE BORROWER IRREVOCABLY WAIVES ANY AND ALL RIGHTS THE BORROWER MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THIS NOTE, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS )VOTE OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. THE BORROWER ACKNOWLEDGES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to Its conflatta of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. In addition to all Dens upon and rights of setoff against Borrower's money, securities or other property given to Lender by law, Lender shall have, with respect to Borrower's obligations to Lender under this Note and to the extent permitted by law, a contractual possessory security interest in and a contractual right of setoff against, and Borrower hereby assigns, conveys, delivers, pledges and transfers to Lender all of Borrower's right, title and interest in and to, all of Borrower's deposits, moneys, securities and other property now or hereafter in the possession of or on deposit with, or in transit to, Lender or any other direct or indirect subsidiary of The PNC Financial Services Group, Inc., whether held in s general or special account or deposit, whether held jointly with someone also, or whether held for safekeeping or otherwise, excluding, however, all IRA, Keogh, and trust accounts. Every such security Interest and right of setoff may be exercised without demand upon or notice to Borrower. Every such right of setoff shall be deemed to have been exercised immediately upon the occurrence of an Event of Default hereunder without any action of Lender, although Lender may enter such setoff on its books and records at a later time. COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instrument hated herein: inventory, chattel paper, accounts, equipment, general intangibles and consumer goods described in a Commercial Security Agreement dated January 27, 2006. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested orally by Borrower or by an authorized person. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. Borrower agrees to be liable for all sums either: 4A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. Lander will have no obligation to advance funds under this Note if, (A) Borrower or any guarantor is in default under the terms of this Note or any agreement that Borrower or any guarantor has with Lender, including any agreement made in connection with the signing of this Note; (BI Borrower or any guarantor cause doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's guarantee of this Note or any other loan with Lender, (D) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender; or (E) Lender in good faith believes itself insecure. FINANCIAL INFORMATION PROVISION. Borrower agrees to deliver any financial and other business information concerning Borrower that Lender may request from time to time, such as annual and Interim financial statements (ell of which shalt be prepared in accordance with generally accepted accounting principles) and federal income tax returns. DEPOSITORY. Borrower will establish and maintain, with Lender. Borrower's primary depository account(s). If Borrower fails to establish and/or maintain its primary depository account(sl with Lender, Lender may, at its option, upon thirty (30) days notice to Borrower, increase the interest rate payable by Borrower under this Note by up to 1.00 percentage points 41.001%). Lender's right to increase the interest rate pursuant to this paragraph shall be in addition to any other rights or remedies Lender may have under this Note, all of which are hereby reserved, and shell not constitute a waiver, release or limitation upon Lender's exercise of any such rights or remedies. AUTOMATIC DEBIT OF PAYMENTS. The Borrower hereby authorizes the Lender to charge the Borrower's deposit account at the Lender for any payment when due hereunder. If the Borrower revokes this authorization for any reason whatsoever or fails to maintain a deposit account with the Lender which may be charged, the Lender may, at its option, upon thirty 130) days notice to the Borrower, increase the interest rate payable by the Borrower under this Note by twenty-five (26) basis points (0,26%). TERMINATION OF LINE OF CREDIT. Upon sixty 160) days prior written notice to Borrower, Lender may terminate the Line of Credit, with or without cause, and demand full payment of the entire unpaid principal balance of this Note, and all accrued and unpaid Interest on the balance, and all other amounts due in accordance with the terms of this Note. Unless Lender's notice provides otherwise, Lender will have no further obligation to advance funds under this Note. CONVERSION TO TERM LOAN. Lender retains the right to convert all or any part of the outstanding Indebtedness under this Note into an amortizing term loan, with or without cause, upon providing Sixty (60) days prior written notice to Borrower (the "Conversion Notice"). If Lender exercise this right, Lender will compute a new monthly payment with respect to the pert of the indebtedness so converted (the "Term Loan Portion"), and Borrower will be advised of such new monthly payment with respect to the Term Loan Portion in the Conversion Notice. Monthly payments on the Term Loan Portion following the Conversion Notice shall be based upon an amortization period specified in the Conversion Notice (the "Amortization Period'). Subsequent payments on the Term Loan Portion shall be determined monthly and shall be In the amounts determined by Lender to be necessary to fully amortize the then outstanding principal balance so converted over the then remaining Amortization Period at the effective interest rate on this Note as of the date the amount of such payment is calculated by Lender. All PROMISSORY NOTE (Continued) Page outstanding principal and accrued interest will be due on the lest day of the Amortization Period. All of the provisions of this Note and any Related Documents shall apply to the Term Loan Portion except to the extent inconsistent with this parof. ACBS CLOSED LOAN PACKAGE. Send closed loan package, including fee collected, to the Document Control Canter(DCC) at P7•PFSC-04-L. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and union otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fell to realize upon or perfect Lender's security interest in the collaterat; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other then the party with whom the modification is made. The obligations under this Note are joint end severe(. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGEMENT. THE BORROWER HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD, AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR THE BORROWER AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST THE BORROWER IN FAVOR OF LENDER OR ANY HOLDER HEREOF FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST AND ALL OTHER AMOUNTS DUE HEREUNDER, TOGETHER WITH COSTS OF SUIT AND AN ATTORNEY'S COMMISSION OF THE GREATER OF 10% OF SUCH PRINCIPAL AND INTEREST OR $1.000 ADDED AS A REASONABLE ATTORNEY'$ FEE, AND FOR DOING SO, THIS NOTE OR A COPY VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT, THE BORROWER HEREBY FOREVER WAIVES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED. INTEREST ON ANY SUCH JUDGMENT SHALL ACCRUE AT THE DEFAULT RATE. NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER SHALL ELECT UNTIL SUCH TIME AS LENDER SHALL HAVE RECEIVED PAYMENT IN RILL OF THE DEBT, INTEREST AND COSTS. NOTWITHSTANDING THE ATTORNEY'S COMMISSION PROVIDED FOR IN THE PRECEDING PARAGRAPH (WHICH IS INCLUDED IN THE WARRANT FOR PURPOSES OF ESTABLISHING A SUM CERTAIN), THE AMOUNT OF ATTORNEYS' FEES THAT LENDER MAY RECOVER FROM THE BORROWER SHALL NOT EXCEED THE ACTUAL ATTORNEYS' FEES INCURRED BY LENDER. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE, THIS NOTE IS GIVEN UNDER SEAL AND IT 16 INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: INFRATECH INDUSTRIES, INC pp BY i X (Seeq J N EARLEY, Ice Pre em of INFRATECH INDUSTRIES. INC eal) F E S, Pr a NFRINDUSTRIES, aI )s LArrA Wt dky V.. 6.300,M1 C- N.Iwe rh.uLJf,Y,w,. r,. ff0f. 2000, wIlyaAru..O. .IA T:IC,WL1pSl0C 1,1002=.-I, EXHIBIT "B" CHANGE IN TERMS AGRErm 'ENT PrinciPt 4oa Bete 1Natrtl#Y,elrit N# aaN l.Edl tl?itslB ?t 4lfic? . $3Q A --t or la: 1 .;ft76 & 'S Ot? fi References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "`•"" has been omitted due to text length limitations. Borrower: INFRATECH INDUSTRIES, INC. {TIN: 20-0930659) Lender: "PNC Bank, National Association 145 WILLOW MILL PARK ROAD Business Banking MECHANICSBURG, PA 17050 4242 Cw0sle Pike Camp Hill, PA 17001 Principal Amount: $300,000.00 Initial Rate: 10.500% Date of Agreement: November 16, 2006 DESCRIPTION OF EXISTING INDEBTEDNESS. A $30,000.00 PROMISSORY NOTE DATED JANUARY 27, 2006 BETWEEN BORROWER AND LENDER AS HERETOFORE MODIFIED FROM TIME TO TIME. DESCRIPTION OF CHANGE IN TERMS. 1) THE MAXIMUM PRINCIPAL AMOUNT OF THE NOTE SHALL BE INCREASED FROM $30,000.00 TO $300,000.00 21 TWO NEW MORTGAGES SHALL BE EXECUTED 3) A PACKAGING FEE OF $1,000.00 AND A SBA LOAN FEE OF $4,200.00 SHALL BE DUE AND PAYABLE BY THE BORROWER 4? THE REPAYMENT SCHEDULE SHALL BE MODIFIED AS DEFINED BELOW. PROMISE TO PAY. INFRATECH INDUSTRIES, INC. ("Borrower") promises to pay to PNC Bank, National Association ("Lender"), or order, in lawful money of the United States of America, the principal amount of Three Hundred Thousand & 001100 Dollars (5300,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shaN be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this beat in accordance with the following payment schedule: Borrower will pay regular monthly payments of accrued interest beginning DECEMBER 16, 2006, and all subsequent Interest payments are due on the same day of each month after that. Borrower will pay this loan in one payment of ail outstanding principal plus all accrued unpaid interest on the Expiration Date. Borrower may borrow, repay and reborrow hereunder untll the Expiration Date, subject to the terms and conditions of this Note. The "Expiration Date" shall mean JANUARY 27, 2008, or such later date as may be designated by written notice from Lender to Borrower. Borrower acknowledges and agrees that in no event will Lender be under any obggation to extend or renew the ban or this Note beyond the initial Expiration Date. In no event shall the aggregate unpaid principal amount of advances under this Note exceed the face amount of this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any1ate charges. Interest on this Agreement is computed on a 365/360 simple interest basis; that is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lander at Lender's address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this loan is subject to change from time to time based on changes in an independent index which is the highest Prime Rate as published in the "Money Rates" section of The Wall Street Journal (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The index currently is 8.250% per annum. The interest rate to be applied to the unpaid principal balance during this loan will be at a rate of 2.250 percentage points over the index, resulting in an initial rate of 10.500% per annum. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a'payment, Lender may accept it without losing any of Lender's rights under this Agreement, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that. indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: PNC Bank, National Association, Attn: Doc Prep/Operations Department - BBCAC, 8800 Tinicum Boulevard 5th Floor Philadelphia, PA 19153. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $100.00, whichever is less. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be increased by adding a 5.000 percentage point margin ("Default Rite Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered in connection with this Agreement, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an Event of Default under this Agreement. Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any othet agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to perform Borrower's obligations under this Agreement or any of the Related Documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrowers behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. CHANGE IN TERMS AGREEMENT Loan No: 0000772442 (Continued) Page 2 insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Bof mut the appolRtltlP,fK 4t i} receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment of any of Borrower's accounts, including deposit! accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness evidenced by this Note. Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the.common stock of Borrower. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance'of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on this Agreement and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Agreement if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedirtbs (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. GOVERNING LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. Thlfa Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. . RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in'all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly withsomeone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable few, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. Borrower acknowledges this Agreement is secured by SECURITY AGREEMENT DATED JANUARY 27, 2006. LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances under this Agreement may be requested orally by Borrower or as provided in this paragraph. All oral requests shall be confirmed in writing on the day of the request. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following persons currently are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's address shown above, written notice of revocation of their authority: JOHN B HESS, President of 1NFRATECH INDUSTRIES, INC.; and JOHN A EARLEY III, Vice President of INFRATECH INDUSTRIES, INC. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid: principal balance owing on this Agreement at any time may be evidenced by endorsements on this Agreement or by Lender's internal records, including daily computer print-outs. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligationls) as changed, nor obligate Lender. to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. FINANCIAL INFORMATION PROVISION. Borrower agrees to deliver any financial and other business information conceming Borrower that Lender may request from time to time, such as annual and interim financial statements (all of which shall be prepared in accordance with generally accepted accounting principles) and federal income tax returns. DEPOSITORY. Borrower will establish and maintain, with Lender, Borrower's primary depository account(s). If Borrower fails to establish and/or maintain its primary depository account(s) with Lender, Lender may, at its option, upon thirty (30) days notice to Borrower, increase the interest rate payable by Borrower under this Note by up to 1.00 percentage points (1.00%). Lender's right to increase the interest rate pursuant to this paragraph shall be in addition to any other rights or remedies Lender may have under this Note, all of which are hereby reserved, and shall not constitute a waiver, release or limitation upon Lender's exercise of any such rights or remedies. AUTOMATIC DEBIT OF PAYMENTS. The Borrower hereby authorizes the Lender to charge the Borrower's deposit account at the Lender for any payment when due hereunder. If the Borrower revokes this authorization for any reason whatsoever or fails to maintain a deposit account with the Lender which may be charged, the Lender may, at its option, upon thirty 130) days notice to the Borrower, increase the interest rate payable by the Borrower under this Note by twenty-five (25) basis points (0.25%). TERMINATION OF LINE OF CREDIT. -n sixty (60) days prior written notice to Borro ender may terminate the Line of Credit, with or without cause, and demand full payn. f the entire unpaid principal balance of this No. ,d all accrued and unpaid interest on the balance, and all other amounts due in accordan.._ with the terms of this Note. Unless Lender's notice provides otherwise, Lender will have no further obligation to advance funds under this Note. . CHANGE IN TERMS AGREE"IT Loan No: 0000772442 (Continued) Page 3 CONVERSION TO TERM LOAN. Lender retains the right to convert all or any part of the outstanding indebtedness under this Note into an amortizing term loan, with or without cause, upon providing sixty (60) days prior written notice to Borrower (the "Conversion Notice"). If Lender exercise this right, Lender will compute a new monthly payment with respect to the part of the indebtedness so converted (the "Term Loan Portion"), and Borrower will be advised of such new monthly payment with respect to the Term Loan Portion in the Conversion Notice. Monthly payments on the Term Loan Portion following the Conversion Notice shall be based upon an amortization period specified in the Conversion Notice (the "Amortization Period"). Subsequent payments on the Term Loan Portion shall be determined monthly and shalt be in the amounts determined by Lender to be necessary to fully amortize the then outstanding principal balance so converted over the then remaining Amortization Period at the effective interest rate on this Note as of the date the amount of such payment is calculated by Lender. All outstanding principal and accrued interest will be due on the last day of the Amortization Period. All of the provisions of this Note and any Related Documents shall apply to the Term Loan Portion except to the extent inconsistent with this paragraph. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Agreement without losing them. Borrower and any other person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Agreement are joint and several. If any portion of this Agreement is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Agreement. PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: 413USTRnIELS.'HINC n s s ( Seal) Byc / iiSealE INFRATECH J N EA LEY IIh Vice PreATECH 1 DUSTRIES, INC. USN M6 L-9. - 5.39-DD.003 Cop,. H-0 S-- So1u-', 1-1c. 1981. 1006. M NyT1. -- - "1 T:i Mi IDf JC.sC T IW?1421 M 14 EXHIBIT "C" i. CONSENT OF GUARANTOR. Lcfart ?ilM? Oil* ?A. _: ? lot. (} i `f 760 Q'}: ftcr tnttiaFs References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "•••" has been omitted due to text length limitations. Borrower: INFRATECH INDUSTRIES, INC.' TIN: 20-0930659) Lender: PNC Bank, -National Association 145 WILLOW MILL PARK ROAD MECHANICSBURG, PA 17050 Business Banking 4242 Carlisle Pike Camp Hill, PA 17001 Each of the undersigned guarantors (jointly and severally if more than one, the "Guarantor') consents to the provisions of the foregoing Change in Terms and the Business Loan Agreement executed in connection herewith (collectively, the "Amendment") and all prior amendments (if any), and confirms and agrees that: (a) this Guarantor's obligations under its Commercial Guaranty dated JANUARY 27, 2006 (collectively if more than one, the "Guaranty"), relating to the Indebtedness mentioned in the Guaranty, shall be unimpaired by the Amendment; (b) the Guarantor has no defenses, set offs, counterclaims, discounts or charges of any kind against the Bank, its officers, directors, employees, agents or attorneys with respect to the Guaranty, and 10 all of the terms, conditions and covenants in the Guaranty remain unaltered and in full force and effect and are hereby ratified and confirmed and apply to the Indebtedness, as modified by the Amendment. The Guarantor certifies that all representations and warranties made in the Guaranty are true and correct. By signing below, each Guarantor whQ is an individual provides written authorization to the Bank or its designee (and any assignee or potential assignee hereof) to obtain the guaantor's personal credit profile from one or more national credit bureaus. Such authorization shall extend to obtaining a credit profile for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account. A photocopy or facsimile copy of this authorization shall be valid as the original. By signature below, each such Guarantor affirms his/her identity as the respective individual(s) identified in the Guaranty. The Guarantor hereby confirms that any collateral for the Indebtedness, including liens, security interests, mortgages, and pledges granted by the Guarantor or third parties (if applicable), shall continue unimpaired and in full force and effect, shall cover and secure all of the Guarantor's existing and future Indebtedness, to the Bank, as modified by this Amendment. The Guarantor ratifies and confirms the: indemnification, confession of judgment (if applicable) and waiver of jury trial provisions contained in the Guaranty. WITNESS the due execution of this Consent as a document under seal as of this day of be legally bound hereby. 2006, intending to VA SSJATT? _1.ZZr.. wen rnp tarifnry?. V", 5;?2.OD.901 CnM. asME iii"aYl Sa,rua. b.,, I yJr, L106. A! 1up,a 11.."wd. . v" T.?CFl1Ln,(i80.fG m-NtlE]•r9 %F74 UNRUH, TURNER, BURKE & FREES, P.C. ATTORNEYS FOR PLAINTIFF n o , BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. NO. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. NO. 78961 P.O. Box 515 WEST CHESTER PA 19381-0515 610-692-1371 c PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant No. lb_ .1 Vi I-1;b 'M NOTICE REGARDING DEBTOR IDENTIFICATION A debtor who has been incorrectly identified herein may file and serve a petition pursuant to Pa. R.Civ. P. 2959 and 2967. An incorrectly identified debtor who prevails in such a motion may be entitled to costs and reasonable attorney fees as determined by the court. You should contact an attorney to advise you in connection with this matter. Pa. R.Civ. P. 2959 provides that: (a)(1) Relief from a judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open it must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has not stayed execution despite the timely filing of a petition for relief from the judgment and the presentation of prima facie evidence of a defense; and (ii) as provided by Rule 2958.3 or Rule 2973.3.(3) If written notice is served upon the petitioner pursuant to Rule 2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. (c) A party waives all defenses and objections which are not included in the petition or answer. (d) The petition and the rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending disposition of the application to strike off the judgment. If evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment. (f) The lien of the judgment or of any levy or attachment shall be preserved while the proceedings to strike off or open the judgment are pending. Pa R.Civ. P. 2967 provides a form for filing a petition to strike the judgment in accordance with -2- certain rules of the Pennsylvania Rules of Civil Procedure. The petition to strike judgment required by Rules 2958.3 and 2973.3 shall be substantially in the following form: (Caption) PETITION TO STRIKE JUDGMENT REQUEST FOR PROMPT HEARING I hereby certify that I did not voluntarily, intelligently and knowingly give up my right to notice and hearing prior to the entry of judgment. I petition the court to strike the judgment on this ground and request a prompt hearing on this issue. I verify that the statements made in this Request for Hearing are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. Notice of the hearing should be given to me at Street Address City, State Telephone Number Dated: Defendant(s) -3- UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant : ATTORNEYS FOR PLAINTIFF as 5.y ;n. cxr ETY : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW . No. Ib - ol a. vi lTrot AFFIDAVIT OF JOHN KUBALA COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA SS. JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is authorized to make this affidavit and that the facts set forth in the foregoing Complaint for Confession of Judgment are true and correct to the best of his knowledge, information and belief; and that the Exhibits attached to the Complaint are true and correct copies of the originals. SWORN TO and SUBSCRIBED befo e m this -5 day oV11711ji-&71-1 2010 N ARY PUBLIC l' ij n JO UBALA COM'v,%.,,r-4 WEALTH OF PENNSYLVANIA NOTARIAL KWASIBORSKISNotary Public iiv of Philelielphia, Phila. County -7- UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant : ATTORNEYS FOR PLAINTIFF !. Cn r t .? : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION -LAW . : No. 1Q U ivk i Term AFFIDAVIT OF DEFAULT COMMONWEALTH OF PENNSYLVANIA SS. COUNTY OF PHILADELPHIA JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is authorized to make this affidavit and that the Defendant is in default under the terms of the instrument attached to the Complaint in Confession of Judgment as Exhibit "B" in that payment has not been made to Plaintiff in accordance with the terms thereof, as a result of which the amount of $376,847.57 plus interest from February 8, 2010 is due and owing. // k SWORN TO and SUBSCRIBED JOHN JJBALA bef e m this • day C A/ 2010. t.OMIHUW4 WEALTH OF PENNSYLVANIA NOTARIAL SEAL T N ARY PUBLIC V v.k KWASIBORSKI, Notary Public ,at,y of Philadelphia, Phila. County .-I-srczR..F.,,?pires Ma?rh a 2C ,._ UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. NO. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant : ATTORNEYS FOR PLAINTIFF z rte` _ M C? li7 A7 '-< : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No. w i lTeX IA AFFIDAVIT OF BUSINESS TRANSACTION COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA SS. JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is authorized to make this affidavit and that this is not an action by a seller, holder or assignee arising out of a retail installment sale, contract or account and that the transactions upon which the judgment being entered is based were business transactions and were not entered into for family, personal or residential purposes. JOHN UBALA SWORN TO and SUBSCRIBED before}? this day of / 4 L,I H .201D. r't''VE A;_ 7'H OF PENNSYLVM ~140TARIAL SEAL NOT PUBLIC KWASIBORSKI, Notary Public ,kPA 0 r'hiladelphia, Phila. County __ u, mission Expires Mach 9: 2C` UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant ATTORNEYS FOR PLAINTIFF ?l r_ V ._ Te -F : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION -LAW : No. 10 - Aa33 -, o, i (Te-M AFFIDAVIT OF INCOME COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA SS JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is ,authorized to make this affidavit and that upon information and belief, states that the income of the individual Defendant, John A. Earley, III exceeds $10,000.00 per year. SWORN and SUB5CRIBED be me this day of rRl_j .2010. i ARY PUBLIC a_OFVv,%',NWEA:.TH OF PENNSYLVANIA a NOTARIAL SEAL KWASIBORSKI, Notary Public of Philadelphia, Phila. County Expires March Q, 2(. A JO KUBALA UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant : ATTORNEYS FOR PLAINTIFF C`)' 7 rn L? IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No. ?D - a i vi l le rol AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA ss. JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is authorized to make this affidavit and that to the best of his knowledge, information and belief, the above-named defendant is not in the military or naval service of the United States or its allies or otherwise within the provisions of the Soldiers and Sailors Civil Relief Act of 1940 and/or its amendments; and that the last known address of the above-named individual defendant is as follows: John A. Earley, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 f f r SWORN TO an d S SCRIBED JOHN KU A A before niq this day of 2,010. %7OMk-.'4,i rlEA_ ? LTI I OF PENNSYLVANIA NOTARIAL. SEAL. NOT RY PUBLIC KWASIBORSKI, Notary Puuip- o` Philadelphia, Phila. County " °?±?_ ?lisSjgri Expires tea ch 2( UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant ss. AFFIDAVIT OF ADDRESSES COMMONWEALTH OF PENNSYLVANIA COUNTY OF PHILADELPHIA JOHN KUBALA, being duly sworn according to law deposes and says that he is a Banking Officer of PNC Bank, N.A.; that he is authorized to make this affidavit and that the addresses of the Plaintiff and Defendant are as follows: Plaintiff PNC Bank, N.A. 1600 Market Street Philadelphia, PA 19103 SWORN TO and SUBSCRIBED before mg this - day of n g,?e,,4j _, 2010. „ / NOiTARY PUBLIC : ATTORNEYS FOR PLAINTIFF c- . , C ._ i IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION -LAW . No. 10 i V l Terk Tl-f-nrlant John A. Earley, III 145 Willow Mill Park Road Mech i sburg, PA 17050 JOHN U ALA ?I+'r.__"???, rv &F_-AL OF PENNSYLVANIA !NOTARIAL SEAL KWASIBORSKI, Notary Puuii:. pp ' 4 of Philadelphia, Phila. County 9. d? , rmission?Expires March P 2C , y UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff vs. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant TO: JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 NOTICE ATTORNEYS FOR PLAINTIFF : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW No. 0 1 V i l Term Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above-captioned proceeding and that enclosed herewith is a copy of all the (records) documents filed in support of the said judgment. IF YOU HAVE ANY QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL: ATTORNEY Nancy J. Glidden, Esquire at telephone number: (610) 692-1371. Dated: AN, 1 , 2010 .10 DAVID D. BUELL, PROTHONOTARY CUMBERLAND COUNTY, PENNSYLVANIA Deputy UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. NO. SS6S8 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. Box 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant ATTORNEYS FOR PLAINTIFF IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENN[,V~tIA ' ,, -- --~ _ ~., ~ _ ;~ CIVIL ACTION-LAW ~~''~ = ``~'r ~ _- CJi ~.. No. 10-2233 _ = -- -~cJ - =~: _ - ; °r; r GJ ~~ .. - ~~_ CERTIFICATE OF SERVICE OF THE NOTICE UNDER RULE 2958.1 This is to certify that in this case complete copies of all papers contained in the Notice Under Rule 2958.1 has been served upon the following persons, by certified mail on April 26, 2010: John A. Earley, III Certified Mail, Return Receipt 145 Willow Park Road Requested, Restricted Delivery Mechanicsburg, PA 17050 No. 7008 1300 0000 5107 9616 True and correct copies of the certified mail receipts and 2958.1 Notices are attached. UNRUH, TURNER,/BU E & FREES, P.C. Date: ~ ~ By; ~7 John K. orillo, Esquire Nancy J. Glidden, Esquire Attorney for Defendant P.O. Box 515 West Chester, PA 19381-0515 Attorney I.D. No. 55658/78961 610-692-1371 r' UNRUH, TURNER, BURKE & FREES, P.C. BY: JOHN K. FIORILLO, ESQUIRE ATTORNEY I.D. No. 55658 BY: NANCY J. GLIDDEN, ESQUIRE ATTORNEY I.D. No. 78961 P.O. BoX 515 WEST CHESTER, PA 19381-0515 610-692-1371 PNC BANK, NATIONAL ASSOCIATION 1600 Market Street Philadelphia, PA 19103 Plaintiff VS. JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 Defendant ATTORNEYS FOR PLAINTIFF IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION -LAW No. 10-2233 NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE, OF DEFENDANT'S RIGHTS Via Certified Mail, Return Receipt Requested, Restricted Delivery No. 70081300 0000 5107 9616 To: JOHN A. EARLEY, III 145 Willow Mill Park Road Mechanicsburg, PA 17050 A judgment in the amount of $376,847.57 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriffmay take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on . you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND ,' PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY LAWYER REFERRAL SERVICE 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 Date: "I ~ ~~ UNRUH, TURNER, BURKE & FREES, P.C. By: John K. Fio illo, Esquire Nancy J. Glidden, Esquire Attorney for Plaintiff, PNC Bank, N.A. P.O. Box 515 West Chester, PA 19381-0515 Attorney I.D. No. 55658/78961 610-692-13 71 •0 ~ ~ -~ e' • • ~ ..- . .•~ ...0 , p _-` f~ - - ' ~ Postage $ (~f+ ° ,~i ` u'I 1 Certrfied Fee ~ ~ I = 1 p ~ ~ ~ ~ ~ Return Receipt Fee (Endorsement Required) ~.~ ~pDstmark ;~~ R ' `° ~ ~`` Here f ' ~ ~J ~ Restricted Delivery Fee `~`~/~ (Endorsement Required) ~.,~ f~ fO Total Postage & Fees Sent To - `° ~ - --------------------1A5.1dl.Hto~ec_ParkRoad------------------------ Street, Apt. No.; - o vrPOaoXNo. Mechanicsburg, PA 17050 r~ --------------------------------- Crty, Stete, ZlP+4 --------- ------------'-`--`°---" ^ Complete items 1, 2, and 3. Also complete A. Sign Rem 4 if Restricted Delivery is desired. X ~'/ ^ Print your name and address on the reverse l.~( so that we can return the card to you. B ~~~ by ~ ~,n~ ~ ^ Attach this card to the back of the mailpiece, or on the front if space permits. D. Is delivery address different 1. Article Addressed to: If YES, enter delivery adi John A. Earley, 111 145 Willow Park Road A1lechaniicsburg, PA 17050 2. Article Number 7 0 D 8 13 D 0 ~r-arrsrer>yorrt serer ~- ~, PS Form 3811, February 2004 a J Agent ^ Addressee r C. Date of [delivery low: ~ ~. J tali ~~! . + ~ 3. Serve Type Jc~`~ ~Certifled Mall D F~cp ail ~ Registered f~Retum Receipt for Merchandise ^ Insured Mail ~^_ C.O.D. 4. Restricted Delivery? (Extra Feel ~''Yeq ODDO 51D7 9616 Domestic Return Receipt 102585-02-M-1540