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HomeMy WebLinkAbout10-3550SUSQUEHANNA COMMERCIAL FINANCE, INC. Plaintiff vs GARY L. CHRONISTER Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNT.', PENNSYLVANIA CIVIL ACTION- LAW No. /d 3 ,'SD c ?crik CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original of which is contained in the Lease and which is attached to the Complaint filed in this action, I appear for the Plaintiff, and confess judgment in favor of the Plaintiff and against the Defendant GARY L. CHRONISTER as follows: Principal Balance as of 5/27/10 $185,535.00 (Plus post judgment rr BVian C. Engelhardt, Esquire Attorney for Defendant i -? iT- C~ 6 "' II Cr ?- trd P? pWV cK ? ?? sd 7 SUSQUEHANNA COMMERCIAL IN THE COURT OF COMMON PLEAS FINANCE, INC. CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION- LAW vs GARY L. CHRONISTER CONFESSION OF JUDGMENT : No. 10-3SS6 c? Defendant COMPLAINT FOR CONFESSION OF JUDGMENT 0 o 1. Plaintiff is Susquehanna Commercial Finance, Inc., a corporation in standing under the Laws of the Commonwealth of Pennsylvania, with its principal place of business located at 1566 Medical Drive, Suite 201, Pottstown, PA 19464 2. Defendant, Gary L. Chronister, is an adult individual residing at 10 Bloserville " Road, Carlisle, PA 17013. 3. On or about August 25, 2000, Defendant executed a Finance Lease Agreement ("Master Lease") with Town & Country Leasing, Inc. with a true and correct copy of the Master Lease being attached hereto and made a part hereof, marked Exhibit "A. 4. Defendant executed the following seven (7) Schedules (collectively referred to as the "Leases") to the Master Lease, each of which incorporated the terms and conditions of the Master Lease, with the property subject of the Schedules being collectively referred to as the "Equipment", the purpose of each Schedule being that Defendant would lease the Equipment under the terms thereof: a. Schedule 510260 dated October 21, 2005, referred to herein as "Lease 1", with the Equipment subject thereof being referred to as Equipment 1, with a true and correct copy of Lease 1 being attached hereto, marked as Exhibit "B" and incorporated herein by reference; ,,1 01 b. Schedule 510261 dated October 21, 2005, referred to herein as "Lease 2", with the Equipment subject thereof being referred to as Equipment 2, with a true and correct copy of Lease 2 being attached hereto, marked as Exhibit "C" and incorporated herein by reference; C. Schedule 608222 dated September 29, 2006, referred to herein as "Lease 3", with the Equipment subject thereof being referred to as Equipment 3, with a true and correct copy of Lease 3 being attached hereto, marked as Exhibit "D" and incorporated herein by reference; d. Schedule 608223 dated August 31, 2006, referred to herein as "Lease 4", with the Equipment subject thereof being referred to as Equipment 4, with a true and correct copy of Lease 4 being attached hereto, marked as Exhibit "E" and incorporated herein by reference; e. Schedule 610116 dated October 10, 2006, referred to herein as "Lease 5", with the Equipment subject thereof being referred to as Equipment 5, with a true and correct copy of Lease 5 being attached hereto, marked as Exhibit 'T" and incorporated herein by reference; f. Schedule 703171 dated March 16, 2007, referred to herein as "Lease 6", with the Equipment subject thereof being referred to as Equipment 6, with a true and correct copy of Lease 6 being attached hereto, marked as Exhibit "G" and incorporated herein by reference; g. Schedule 703172 dated March 16, 2007, referred to herein as "Lease 7", with the Equipment subject thereof being referred to as Equipment 7, with a true and 2 correct copy of Lease 7 being attached hereto, marked as Exhibit "H" and incorporated herein by reference. 5. The interest of Town & Country, Inc. in the Leases and the Equipment was assigned to Plaintiff by the successor to Town & Country, Inc. on or about May 29, 2007 by the terms of an Assignment of Chattel Paper, a true and correct copy of which is attached hereto marked as Exhibit "I" and incorporated herein by reference. 6. On or about July 15, 2008 the Leases were amended and consolidated by the terms of an "Addendum to Vehicle Schedules" ("Addendum") which amended the payment schedules but otherwise incorporated the terms and conditions of the Master Lease and the Leases, a true and correct copy of which Addendum is attached hereto marked as Exhibit "J" and incorporated herein by reference. 7. In accordance with the terms of the Addendum, Defendant, among other obligations thereunder, was to pay: (a) 2 rental payments of $1,000 per month; followed by (b) 6 rental payments of $4,000 per month; followed by (c) 52 rental payments of $12,025.00 per month, commencing on July 15, 2008. 8. Defendant defaulted under the Master Lease and the Leases, as amended by the Addendum by failing to make the payment due May 2, 2008, and as a result of that default, Plaintiff repossessed the Equipment. 9. At the time of the repossession, 53 monthly payments remained, one being in the amount of $4,000.00 and 52 in the amount of $12,025.00, were due to Plaintiff for a total gross balance due being the sum of $629,300.00. 7. Plaintiff caused the Equipment to be sold for a total sum of $350,200.00, with the total gross deficiency due being the sum of $279,100.00, which reduced to present value as of 3 the date hereof in accordance with the terms of the Lease and under law is, as of the date hereof, the sum of $185,535.00. 10. Although demanded, Defendant has failed to pay the $185,535.00 deficiency which is currently due under the Lease. 11. Other than the assignment from T&C to Plaintiff, the Lease Documents have not been assigned. 12. No prior judgment has been entered on the Lease. 13. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 14. Plaintiff is authorized and empowered to confess judgment against the Defendant under the terms of Paragraph 22 of the Master Lease, titled "Confession of Judgment", authorizing the lessor or any assignee thereof. to confess judgment against Defendant as lessee in accordance with the terms of that Paragraph. 15. Defendants knowingly and intelligently waived his rights relating to the Confession of Judgment contained in the Master Lease pursuant to the "Notice and Wavier of Rights Regarding Warrants of Attorney, Execution Rights, and Waiver of Rights to Prior Notice and Judicial Hearing," executed by Defendant, a true and correct copy of the which is attached hereto marked as Exhibit "K" and incorporated herein by reference. 16. Based upon the foregoing, as of May 27, 2010, Defendant is liable to Plaintiff in the following amount of $185,535.00. WHEREFORE, Plaintiff demands judgment against the Defendant in the total amount of $185,535.00 as authorized by the warrant appearing in the attached instruments and post- judgment interest. 4 Dated: May 27, 2010 Respectfully submitted, ATTO Y FOR PLAINTIFF L By: BriC. Engelhardt, Esquire 1566 Medical Drive, Suite 201 Pottstown, PA 19464 Pa. ID No. 23204 800-786-0004 Ext 136 Fax 610-705-9546 brian.en elhardt(c?susquehanna.net 5 VERIFICATION Susquehanna Commercial Finance, Inc., by and through Jeffrey Nicholas, who is its Sr. VP/Chief Risk Officer, verifies that it is the Plaintiff in the within matter; that the attached Complaint in Confession of Judgment ("Complaint") is based upon information which it has furnished to its counsel and information which has been gathered by its counsel in the preparation of the lawsuit. The language of the Complaint is that of counsel and not of Plaintiff. The undersigned has read the Complaint and to the extent that it is based upon information, which it has given to its counsel, it is true and correct to the best of its knowledge, information and belief. To the extent that the content of the Complaint is that of counsel the undersigned has relied upon counsel in making this Verification. The undersigned understands that false statements herein are made subject to the penalties of 18 Pa. C.S.A. Section 4904 relating to unsworn falsification to authorities. Dated: May 27, 2010 SUSQUEHANNA COMMERCIAL FINANCE, INC. *e- ryhiNich las ef Risk Officer 6 I 1 , EXHIBIT A. , I A Town & Country Inc. Finance Lease Vehicle/Equipment Leasing • Fleet and Individual Agreement P.O. Box 329 * 1097 Commercial Avenue East Petersburg, PA 17520 * Phone: (717) 569-8766 No. MM LEASE AGREEMENT, hereinafter called the "Agreement made and entered into at EAST PETERSBURG, PA this -25th day of AUGUST _200 _ , by and between Town & Country, Inc., a Pennsylvania corporation, "LESSOR," located at 1097 Commercial Avenue, East Petersburg, PA 17520 and GARY L CHRONISTER located at 0-71 mUwtft KUAL)C U MBERSBURG PA 17201 hereinafter called the "LESSEE," is made subject to the following terms and conditions. (1) LEASED EQUIPMENT: LESSOR hereby leases to LESSEE, and LESSEE hereby hires from LESSOR, the equipment and property described in Schedule A, specimen attached hereto, together with any additional equipment and property described in any additional schedule A's or purchase orders which may hereafter be executed by LESSEE (hereinafter called "LEASED EQUIPMENT"), for the period and upon the terms and conditions of this Agreement. Any vehicle leased by LESSOR to present or future subsidiaries of the LESSEE, pursuant to Schedule A's or otherwise, shall be within the terms and conditions of this Agreement, and the LESSEE warrants that, in the event such subsidiary does not perform according to the terms and conditions of this Agreement, LESSEE will, upon 15 days notice of any default, perform according to the tenure of this Agreement regarding vehicles on lease to such subsidiary. (2) TERM OF AGREEMENT: The minimum lease term for each unit of leased equipment shall be stipulated in the respective Schedule A, commencing the date the unit goes into service, after which the LESSEE shall be deemed to have elected to renew the lease for such unit on a month-to-month basis unless notice of a withdrawal from service or termination of a renewal period is provided to LESSOR. LESSEE'S obligations for lease payments during the minimum lease term shall not be abated for any reason, including but not limited to early withdrawal from service or destruction of the unit. (3) LESSEE'S OPERATION OF THE LEASED EQUIPMENT: LESSEE shall be solely responsible for fines and penalties incurred in and without limitation to the use and/or operation of the LEASED EQUIPMENT for violations of any statute, ordinance, bylaw, or regulation of any duly constituted governmental authority, committed by any of LESSEE'S employees, agents, sublessees or subcontractors. LESSEE shall comply with the federal, state, county and municipal statutes, ordinances and regulations which may be applicable to the leasing, use or operation of the LEASED EQUIPMENT hereunder and shall prepare and furnish to LESSOR all documents, returns or forms legally required thereunder. (4) MAINTENANCE OF LEASED EQUIPMENT: It is understood that LESSOR makes no warranty regarding the LEASED EQUIPMENT as to condition, merchantability, or otherwise, and LESSOR hereby assigns to LESSEE all manufacturer's warranties applicable to the leased equipment. LESSEE will maintain the LEASED EQUIPMENT and all accessories and equipment thereof in good mechanical condition and running order at all times during the term of this Agreement and will furnish all supplies, funds, and other essentials required for the use or operation of the LEASED EQUIPMENT by LESSEE or by any of its sublessees. (5) COST, EXPENSES, FEES AND CHARGES: LESSEE covenants that it will pay all costs, expenses, fees, charges and taxes (other than federal income or excess profits taxes or state income taxes) incurred in connection with the titling, registration, delivery, purchase, sale, rental, installation, use or operation of the LEASED EQUIPMENT during the term of this Agreement in addition to the rental herein provided, Upon demand, LESSEE shall reimburse LESSOR for any and all such costs, etc., set forth in the preceding sentence, as LESSOR may reasonably incur or may be compelled to pay in connection with such LEASED EQUIPMENT. (6) REGISTRATION PLATES, ETC.: Registration plates and other such plates, permits or licenses required to be obtained in the name of LESSOR shall be obtained directly by LESSEE, except for the initial registration plates, which LESSOR shall obtain, all at LESSEE'S expense, and LESSOR shall issue to LESSEE, for such purpose, powers of attorney and/or other necessary authority. LESSOR covenants and agrees to give LESSEE full cooperation in connection with the obligations assumed by LESSEE under Paragraphs (5) and (6)•hereof and to furnish as promptly as possible any and all information which LESSOR has to enable LESSEE to comply with said paragraphs. (7) RENTAL CHARGES: LESSEE will pay LESSOR and LESSOR will accept as payment from LESSEE, as rental for the LEASED EQUIPMENT, charges in accordance with Schedule A's. All payments of rental shall be in United States legal tender. All charges are due and payable on the first day of the month. The LESSEE will receive a monthly invoice or a coupon book. LESSEE shall pay to LESSOR a late payment penalty in the amount of five percent (5%) or the highest legal interest rate, whichever is less, per month or fraction thereof of any invoice the payment of which is not in possession of the LESSOR on or before the tenth (10th) day of the month. This amount may be accu- mulated and payable at termination of LEASED EQUIPMENT. Any unit of LEASED EQUIPMENT purchased or disposed of after the fifteenth (15th) day of any month will be treated as an acquisition or disposition as of the first (1st) day of the following month, and any unit of LEASED EQUIPMENT purchased or disposed of on'or prior to the fifteenth (15th) day of any month will be treated as an acquisition or disposition as of the first (1st) day of such month. In the event a lapse of time shall occur between the delivery to LESSOR of part of any truck unit of LEASED EQUIPMENT, such as a chassis, and delivery of any other part, such as a body, tank, etc. and it shall become necessary or desirable for LESSOR to pay for such incomplete unit, LESSOR, in such event, may borrow funds to pay for such incomplete unit, the cost of such interim financing not to exceed two percent (2%) over the then existing prime rate and to be paid by LESSEE at the time of delivery of the complete unit. All incomplete units thus acquired shall, with the exception of the payment of rentals, be subject to the terms and conditions of this Agreement„ including, but not limited to, the indemnity provisions of Paragraph (10) hereof. (8) PURCHASE - ADDITIONAL OR REPLACEMENT EQUIPMENT: LESSOR, at the request of LESSEE, shall from time to time acquire additional or replacement equipment for lease to LESSEE hereunder, or LESSEE, with the consent of LESSOR, may from time to time acquire for the account of LESSOR additional or replacement equipment, and as each subsequent purchase is made, a new Schedule A, designated by a number, will be executed by both parties hereto listing all such new acquisitions. Upon purchase by LESSOR for LESSEE of any such additional or replacement equipment, pursuant to a purchase order executed by LESSEE, or upon the securing of such equipment by LESSEE with the consent of LESSOR, all such equipment shall be subject to all the terms and conditions of this Agreement. It is agreed and understood, however, that nothing in this Agreement will be construed as requiring LESSEE to lease any additional equipment from LESSOR or to replace any equipment which has previously been or is then under lease from LESSOR to LESSEE. (9) INSURANCE: Unless agreement is made in writing by LESSOR and LESSEE that LESSOR will provide insurance, LESSEE will purchase and maintain in force during the time this Agreement is in effect, insurance policies In at least the amounts Misted below, covering each unit of the LEASED EQUIPMENT between the time of delivery thereof to LESSEE and LESSOR'S obtaining possession thereof for disposition, to be written by an insurance company or companies of adequate financial responsibility acceptable to LESSOR, insuring LESSEE, and by endorsement naming LESSOR as Additional Insured and protecting LESSOR against any loss, damage, claims, suits, actions or liability, such endorsement or endorsements to provide in each case that said insurance company or Companies shall give to LESSOR at least thirty(30)days notice in writing of proposed cancellation, modification, or alteration of any said insurance. Type Amount Public Liability $250,0001$500,000 or $300,000 Single Limit Property Damage $100,000 Collision, Fire and Theft Not less than LESSOR'S Book Value LESSEE shall furnish LESSOR with a copy of the policies referred to above, or other evidence thereof acceptable to LESSOR. Policies covering the aforementioned fire and theft and collision insurance shall bear endorsements to the effect that proceeds thereof shall be payable to LESSOR and/or LESSEE as their interests may appear. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorize representatives on the day and year first above written. LE 4-- T ?OUIVTRY.INC,___,_ LESSEE: By By Title _ Ti tle - DO= By Title (Corporate Seal) 00) INDEMNIFICATION BY LESS F covenant and agrees to Indemnity, save harmless ; a .any damage or injury and from and agains lions, or legal proceedings of any kind brought against, .r .1 ES OR ainount st of and all claims or loss, corporation or corporations, or on account of a: , juries received or sustained by any person or persons In any , ;:ner, directly or indirectly any canepersond or by, incident to, or growing out of the use or operation of the LEASED EQUIPMENT between the time of delivery thereof to LESSEE and the time of surrender thereof by LESSEE to LESSOR for disposition. LESSEE further agrees to take upon itself the settlement of all such claims and the defense of any suit or suit, or legal pro- ceedings of any kind brought to enorce such claim or claims, and to pay all judgement entered in such suit or suit and all cost of attorney fees or other expens- es. In any Instance where said claims In any way affect LESSOR'S interest under this Agreement, LESSEE shall not consummate. any settlement without LESSOR'S prior_wfitten consent. LESSEE further covenant and agrees to hold LESSOR harmless from any loss,'damage, theft or destruction of the LEASED EQUIPMENT. In the event of any such loss, damage, theft or destruction, LESSEE shall pay the unamortized book value thereof directly to LESSOR. The foregoing LESSEE'S covenants of indemnity assumed in the first paragraph of this Para the termination of this Agreement, the purchase of the LEASED EQUIPMENT by LESSEE or the sale thereo(,all continue in full force and effect notwithstanding The provisions of this Paragraph (10) comprehend, but without Iim 1ladon'b*e s, howsoever arising, whetherby reason of negligence, breach of warranty, defect in manufacture or maintenance or otherwise, and even though strict Ilabillty be 6 claimed; (11) LESSOR - LESSEE RELATIONSHIP: It is agreed that this is not an agreement of partnership or empl . . ees by LESSEE, and that LESSOR is an independent contractor. oyment of LESSOR or of any of LESSOR'S employ- (12) DEFAULT BY LESSEE: In the event LESSEE shall fall to make the payment as herein provided or shall fail to perform any of its covenants under this Agreement, and such failure shall continue or a period of ten (10) days after written notice therof shall have been given, or in the event (a) there shall be filed by or against LESSEE any action under any provision of any state or federal laws relating to bankruptcy, or (b) If LESSEE shall make an assignment or the benefit of creditors, or (c) if a receiver or trustee shall be appointed for LESSEE'S property, or (d) if LESSEE commit or omits any act which LESSOR reasonably deter- mines impairs LESSEE'S prospect of making payments or performing any of the other covenant required by LESSEE hereunder, then in such event LESSOR its b may, or the utnamorttzedttbboook value other remedies of the LEASE EIQU PM ENT available a minimum of one 1 any event, LESSEE remains respon-serv the date of default, and it Is agreed that LESSOR tashall be entitled to receive from LE the to LESSOR, as add tonal rent ann amount eq it to thhe c mfor ulative dlan fference beetwe at actualt Interest expense It on flue and days' written est expense LESSEE shat also pay unit first goes in service to the date the unit comes out of service. These adjustment shall be reflected In the settlement amountionethetVehicle Closeout Schedu ee LESSOR may, at it option, (a) terminate this Agreement with respect to any or all the LEASED EQUIPMENT hereunder, In which event any and all such LEASED EQUIPMENT shall Imme- diately be delivered, at LESSEE'S cost and expense, to a location or locations specified by LESSOR, and recover from LESSEE all due and unpaid rentals, together with all cost and expenses, Including reasonable attorneys' fees, incurred by LESSOR in the enforcement of its rights under the provisions of this Agreement; or (b) repossess any and all LEASED EQUIPMENT hereunder without terminating this Agreement and charge LESSEE with any deficiency between the amount due from LESSEE and the amount realized by leasing such LEASED EQUIPMENT to another party, while refining is right to collect the full rental due for the period prior to termination and repossession, and all expenses Incurred in repossessing said LEASED EQUIPMENT, including reasonable attorneys' fees or enforcement of LESSOR'S right. (13) CROSS-COLLATERAL: On the occurrence of any event of default under this Lease Agreement or any other Lease Agreement between Town & Country, Inc. and Lessee, in addition to the remedies above cited available to the Lessor, Lessor has the right to set off any interest of the Lessee in any vehicle, equip- ment or personal property subject to a Lease Agreement between Town & Country, Inc. and Lessee to satisfy any and all obligations due under this Lease Agreement or any other Lease Agreement with Town & Country, Inc. (14) ADDITIONAL COLLATERAL: As long as Lessee has outstanding obligations to the Lessor, Lessor at Its sole discretion may withhold the release of titles, equipment or personal property held In the name of Lessor If Lessor reasonably believes that the release of the said property would jeopardize Lessor's collater- al position necessary to Insure the total repayment by Lessee of all Its obligations to Lessor. (15) DEFAULT BY LESSOR: In the event LESSOR fails or is unable to perform its obligations hereunder, or in the event (a) there shall be filed LESSOR any action under any provision of any state or federal laws relating to bankruptcy, or (b) If LESSOR shall make an assignment for the benefit of credi- tors, or (c) if a receiver or trustee shall be appointed for LESSOR'S property, then and in such event, LESSEE shall either (a) purchase or cash LESSOR'S note or notes applicable to the LEASED EQUIPMENT sub LESSOR'S ject the purchase of said LEASED EQUIPMENT hereunder at their then unpaid principal amoutplon to tis , us Interesthereoneto the i dateiof purrchasse; orlndebtedness (b) assume payment of such note or notes evidencing LESSOR'S Indebtedness for the purchase of the LEASED EQUIPMENT subject to this Agreement, in accordance with their original terms relating to time of payment and rate of interest. SURR ER AND D mumsease temDupon writtentnotice oOLE SOR, suer hSunit,at its expense, or disposition jiwith or withouuttrrepla replacement, at such place as may be ally agreed upon with LESSOR. All vehicles shall be returned in as good order and condition except for ordinary wear and tear, as when firstflrecei entire from LESSOR. LESSOR shall make arrangements to sell each unit within a reasonable time after the date of surrender. The completion of such sale shall be evidenced In the Vehicle Closeout Schedule. Any unit of LEASED EQUIPMENT thus surrendered for replacement shall continue to be subject to the terms and conditions of this Agreement until comple- tion of the sale above referred to, with the exception of rental payments which shalt cease effective such sale, there shall first be deducted therefrom the actual costs and expenses Incurred bSStORf in surrender. From the undertaking such spat e, the alaance thusdrema ng to constitute the net proceeds. The net proceeds from the sale of ay unit of the LEASED EQUIPMENT surrendered or replacement or otherwise shall be to LESSOR. In the event that such net proceeds are less than LESSOR'S book value of such LEASED EQUIPMENT as s ate Payable ate amortization charges, LESSEE shall reimburse LESSOR, in cash. or any and all such deficiency promptly after the date of the consummation of such sale. In the event that such net proceeds are in excess of LESSOR'S net cost, comput pacified in Schedule A, less appropri- default, promptly after the date of the consummation of such sale; provided, howeeveer, If LESSEE Is in default, said excess shall be a plid osreducefthet tamount aforesaid. such excess amount shall be id to , of the default. LESSEE shall also pay to LESSOR, as additional rent, an amount equal to the cumulative difference between actual Interest expense and averaged interest expense f rom the date the unit first goes in service to the date the unit comes out of service. These adjustment shall be reflected in the settlement amount on the Vehicle Closeout Schedule, (17) ASSIGNMENTS: LESSOR may from time to time assign all or any part of its right, title and interest in this Agreement, Including all moneys and claims for moneys due and to become due, to the LESSOR hereunder. LESSEE'S obligation to pay said moneys to the Assignee, upon prior written notice to LESSEE by Assignee, shall be absolute and unconditional and shall not be subject to any defense or setoff. The Assignee shall have no obligation or liability under this Agreement by reason of or arising out of such assignment, nor shall the Assignee be required or obligated in any manner to perform or fulfill any obligations of the LESSOR under this Agreement. This Agreement and any right or Interest created In any unit leased hereunder shall be subject and subordinate to rights and security interest in such unit heretofore or hereafter granted by the LESSOR to the Assignee covering such unit-, provided, however, that the LESSEE may remain in possession of such unit until expiration of the lease term as log as the LESSEE shall make due and' timely payment to such Assignee of all moneys then and thereafter due hereunder and perform all other covenants and obligations of the Agreement. (18) SCHEDULES: It is hereby mutually agreed that Schedule A's, when and as executed by both parties, Master Lease Rate Schedules, Insurance Schedules and Vehicle Closeout Schedules are a part of and subject to this Agreement. or amended , and such modifificatio s, changes. or ame dm nt may beamade onlytin writing subsc b d by LESSEE and LESSOR, ad (failure of elite r party to enorcel any righty grant ed herein shall. not be deemed a waiver of such right. - (20) This Agreement shall become effective upon proper execution by all parties. The laws of the State of Pennsylvania shall govern all questions or disputes, whether sounding In tort or contract, relating to the interpretation, performance, validity, enforcement, or effect of this Agreement. Unless otherwise specified, the lease agreement shall be construed to have been i executed for purposes of jurisdiction and venue in Lancaster County, Pennsylvania. which is the home office of Town & Country, Inc. (21) This lease and any vehicles listed thereunder will be subject to any right and Interest in and to said vehicles under any respective contract or contracts that any financing source may hold on same. (22) CONFESSION OF JUDGMENT. The LESSEE hereby agrees that upon its insolvency or bankruptcy or upon a receiver being appointed or it or upon the breach of any condition or covenant contained in this lease that the LESSOR shall have. the right or which this lease shall be sufficient warrant, and the LESSEE for said purpose hereby authorizes the Prothonotary or Clerk of any attorney of any court of record to appear for the LESSEE and confess judgment In favor of the LESSOR or Its assignee and against the LESSEE for the whole rent for the remainder of the term, together with attorney's fee of five percent (5%) for col- lection, the LESSEE hereby walving+oobtfemnation, inquisition and exemption, and any and all IAweIn 1gVstpoce of hereaf)6r4o:be'passed for the benefit of the LESSEE. If the said LESSEE shall become embarrassed, make an assignment for the benefit of creditors, be declared a bankrupt, voluntarily or Involuntarily, or if the personal, property of the LESSEE shall be sold. by Sheriff's or Marshal's sale, then the rent or the said term, or any term or balance of any term hereby cre- ated, shall at ohce 6ecomii?'due ek 0a 61e'asrif ti the terms of this lease it were all assignment, bankrupt estate, or sale, any law, usage, or custom to the contrary notwithstanding. And advance, is f rther agreed bh at It he said of pro aidurent,torr any charges here- p in included as rent. shall at any time be in arrears and unpaid, or if the said LESSEE shall underlet or otherwise use the said equipment than as herein expressed, or shall fail to comply with the conditions of this lease, or notice given under the terms hereof, or shall not well and truly perform and fulfill each, and every covenant and agreement herein contained on the part of the LESSEE to be performed and kept, then this lease shall, at the option of the said LESSOR, cease and absolute- ly determine, and LESSOR may enter any premises and without breach of the peace take possession of the said equipment. W0/9569 Rev. 9199 EXHI.Bl'T'ccB'3 TOWN & COUNTRY LEASING, LLC Vehicle/Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone(717)569-8766 * Fax(717)735-4886 * 800-545-8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO. 12852/001 MASTER LEASE NO. 6660 1NP5DB9X46N634373 510260 JAKE'S TRUCK SHOP INC 11 OSCAR WAY P 0 BOX 698 2006!PETERBILT 379 $111,250.48 UWCHLAND, PA 19480 TRACTOR 2006 CARTERBUILT 3-CAR $29,525.00 TELEPHONE 610-458-5600 FLAT TOP HEAD RACK GARY L CHRONISTER 675 WILLIAMS GROVE ROAD SUITE #1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333/888-245-8295 GARY L CHRONISTER 675 WILLIAMS GROVE ROAD MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333 R. PA 1-60 $2,800.83 $0.00 $2,800.83 RESIDUAL $0.00 OMURAW RESIDUAL DEPR CAPITALIZED AMOUNT $140,775.48 THE MINIMUM LEASE TERM FOR THIS UNIT IS 60 MONTHS A) Minimum Tenn Commencement Date: For all titled vehicles, the Minimum Term Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first day of the following month. B) Surrender and Disposition: a. General Provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Term, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. b. Delivery Recuirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. C. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. "This is page one of a two page document" [? L L- (initials) ,-This istpage two of a two page document' d. Return Balance Amount. "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Tenn, any Renewal Tenn and any designated "Residual") calculated either (1) in accordancewith the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which Interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime") plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. Calculation of Net Proceeds. From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (and/or its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor, 9. Disposition of Net Proceeds. (t) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in Its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. h. Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY L C NISTE LESSOR - W & COUNTRY LEASIN LC By By Title Title Date of Signing /?, 4 b S Delivery & Acceptance Date /Oa/ Revised 3/04/04 10/21/2005 EXHIBIT "C' TOWN & COUNTRY LEASING, LLC Vehicle/Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone (717)569-8766 * Fax (717)735-4886 * 800-545-8947 Vehicle Schedule FINANCE (LEASE CUSTOMER NO. MASTER LEASE NO. 12852/001 6660 I nc MINIMUM LtAat I tKM rUK I Nib UNI I IS W MONTHS A) Minimum Tern Commencement Date: For all titled vehicles, the Minimum Tenn Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (16th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first day of the following month. B) Surrender and Disposition: a. General Provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Tenn, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. b. Delivery Reouirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. C. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, Lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. ""This is page one of a two page document' 6 L L Onltials) ..This 1s page two of a two page document' d. Return Balance Amount "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Term and any designated "Residual") calculated either (1) in accordance with the amortization schedule attached hereto; or (2) on a simple Interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall, accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime") plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terns of the Lease Documents Including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. ?. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. ?. Calculation of Net Proceeds. From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (and/or its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. 9. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. h. Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any Indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein, LESSEE - GARY L C14NISTEIO LESSOR - T COUNTRY LEASING, LL By By Title Title 'op Date of Signing a „ ?1 u a_5 Delivery & Acceptance Date D Q Revised 3/04/04 10/21/2005 TOWN & COUNTRY IQ7 L EAS I N G, LLC Vehicle/ Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone(717)569-8766 * Fax(717)735-4886 * 800-545-8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO. 128521001 MASTER LEASE NO. 6660 JAKE'S TRUCK SHOP INC 11 OSCAR WAY P O BOX 698 UWCHLAND, PA 19480 TELEPHONE 61 GARY L CHRONISTER 675 WILLIAMS GROVE ROAD SUITE #1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333/888-245-8295 GARY L CHRONISTER 675 WILLIAMS GROVE RD ST1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333 RESIDUAL $0.00 DEPR CAPITALIZED AMOUNTS $146,153 nc Ivmrvnnum LMAAC I ertm rvrt I Iris Ulvi I Is Ou MONTHS A) Minimum Term Commencement Date: For all titled vehicles, the Minimum Term Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first day of the following month. 8) Surrender and Disposition: a. General provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Term, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. b. Delivery Requirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its Intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. C. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, Lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to'Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall Inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. **This is page one of a two page document'' N666309 A 608222 2007 PETERBILT 379 $100,996.00 FEDERAL EXCISE TAX $11,897.52 HUNTER KEYSTONE PETERBILT I $1,345.13 PARTS WEBASTO AIRTOP $1,154.38 2007 CARTERBILT 3 CAR FLAT $30,760.00 TOP HEAD RACK 6 L-L (Initials) -This is page two of a two page document' I d. Retum Balance Amount. "Return Balance Amount shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Tenn and any designated "Residuar) calculated either (1) in accordance with the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime") plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (ii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. f. Calculation of Net Proceeds. From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (and/or its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. g. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Nei Proceeds exceeds the Retum Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terns and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. h. Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and 1 accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY L RONIST LESSOR T WN & COUNTRY LEASING, LLC By By Title L , „ ) t_ <- Title , Date of Signing Ins )f96 Delivery & Acceptance Date Revised 3/04/04 1012/2006 TOWN & COUNTRY L EAS 1 N G, LLC Vehicle/ Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone(717)569-8766 * Fax(717)735-4886 * 800-545.8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO. MASTER LEASE NO. 12852/001 6660 5EOAJ14467G113201 608223 JAKE'S TRUCK SHOP INC 11 OSCAR WAY P O BOX 698 2007 EAST COAST TRAILER $64,468.50 UWCHLAND, PA 19480 FEDERAL EXCISE TAX $7,638.30 TELEPHONE 610-458-5600 1011 1 11 GARY L CHRONISTER % 675 WILLIAMS GROVE ROAD SUITE #1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333/888-245-8295 GARY L CHRONISTER 675 WILLIAMS GROVE RD ST1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333 PA L 1 - 60 $1,503.83 $0.00 $1,503.83 V E L RESIDUAL $0.00 D .. E L N I N 3 RESIDUAL DEPR CAPITALIZED AMOUNT $72,106.80 THE MINIMUM LEASE TERM FOR THIS UNIT IS 60 MONTHS A) Minimum Terre Commencement Date: For all titled vehicles, the Minimum Term Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first day of the following month. B) Surrender and Disposition: s. eneral Provided that the Lessee is in compliance with all of the teens and conditions of the Lease Documents, at any time prior to the end of any renewal Tenn, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. b. Delivery Requirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. c. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent. Lessor or Its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. "This is page one of a two page document" LL (Initials) ,**This is page two of a two page document' d. Return Balance Amount. "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Tenn and any designated "Residual") calculated either (1) in accordance with the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ti) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime') plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle, Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. I. Calculation of Net Proceeds. From the proceeds thus realized from any such sale, there shall be deducted: (1) the actual costs and expenses incurred by the Lessor (and/or its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. g. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. h. Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY L PHRONISTF.R LESSOR T N & COUNTRY LEASING, LLC By By i Title Title Da te of Signing Delivery & Acceptance Date 0'31 1.10 Revised 3/04/04 8/31/2006 TOWN & COUNTRY LEASING, LLC Vehicle/ Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone (717)569-8766 * Fax (717)735-4886 * 800-54S-8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO MASTER LEASE NO. 12852/001 6660 fANNUM 3FRWX65B47V477330 t?l 610116 MASON DIXON TRUCKS 15409 MOLLY PITCHER HWY 2007 FORD F650 WITH $63,000.00 GREENCASTLE, PA 17225 ROLLBACK TELEPHONE 717-597-9400 GARY L CHRONISTER 675 WILLIAMS GROVE ROAD SUITE #1 MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333/888-2245-8295 GARY L CHRONISTER 675 WILLIAMS GROVE RD MECHANICSBURG, PA 17055 TELEPHONE 717-691-9333 ICE z PA L 1-60 $1,307.78 $0.00 $1,307.78 E V E L RESIDUAL $0.00 D MONTHS' " . E C L I N I N G RESIDUAL DEPR CAPITALIZED AMOUNT $63,000.00 IHt MINIMUM LtASt IF-KM FOR THIS UNIT 15 GU MONTHS A) Minimum Tenn Commencement Date: For all titled vehicles, the Minimum Tenn Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first day of the following month. B) Surrender and Disposition: a. General Provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Term, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. e. Delivery Requirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. C. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be In as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, Lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such Inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, In the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. "This is page one of a two page document- (Initials) `This i s page two of a two page document" d. Return Balance Amount. "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Term and any designated "Residual") calculated either (1) In accordance with the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) Interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime') plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. L Calculation of Net Proceeds. From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (and/or its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. 9. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an',amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. h. Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay, any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY L CHRONISTER By Title LESSOR TQVVN & COUNTRY LEASING, LLC By Title Date of Signing Delivery & Acceptance Date Revised 3/04/04 10/9/2006 TOwN & COUNTRY 4NkL LLC Vehicle/ Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone (717)569-8766 * Fax (717)735-4886 * 800-545-8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO MASTER LEASE NO. 12852/001 6660 5KKHAECK37PX67108 ' UIUhl# 703171 14758 EAST COAST TRUCK & TRAILER SALES 2906 ELMHURST LANE 20071WESTERN STAR LOMAX $150,133.18 PORTSMOUTH, VA 23701 ENGINE SERIES 60 14 LITER 470/515HP DETROIT TELEPHONE 800-849-2178 13 SPD TRANSMISSION ' ALL ALUMINUM WHEELS 12852/001 14,600# FRONT SPRINGS GARY L CHRONISTER 48" SLEEPER 675 WILLIAMS GROVE RD, STE #1 BACKUP PTO MECHANICSBURG, PA 17055 LIFT DECK, PULL OUT DROP POCKETSS, ALUMINUM TRACKS TELEPHONE 717-691-9333 1ST & 2ND POSITIONS r.. REMOVABLE RAMPS IN 2ND POSITION GARY L CHRONISTER DOWN PAYMENT TO DEALER -$1,500.00 675 WILLIAMS GROVE RD, STE 1 MECHANICSBURG PA 17055 TELEPHONE 717-691-9333 DEALER FEES $977.35 1-60 $3,102.04 $0.00 $3,102.04 RESIDUAL $0.00 RESIDUAL DEPR CAPITALIZED AMOUNT $149,610.53 r He MINIMUM LCASt I trim I-UK I HIS UNIT IS t)U MONTHS A) Minimum Term Commencement Date: For all titled vehicles, the Minimum Term Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the First day of the following month. B) Surrender and Disposition: A General Provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Term, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. Delivery Requirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. Condition of Vehicle . Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, Lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. "This is page one of a two page document" GLc (Initials) "This is,page two of a two page document" r d. Return Balance Amount "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Term and any designated "Residual") calculated either (1) in accordance with the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ('WSJ Prime") plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor for its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that lessee shall not be required to pay monthly installments of rent following surrender. Calculation of Net Proceeds From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (andfor its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. g. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the tight to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. A Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule from Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY LICHRONISTER By Title C.1 1J Q . Date of Signing ,3- O Delivery & Acceptance Date -,31 ? oo LESSOR - OWN & COUNTRY LEASING, LLC By Title Iny Revised 3/04/04 4/16/2007 TOWN & COUNTRY qffl'FtL LLC Vehicle/ Equipment Leasing * Fleet and Individual P.O. Box 329 * East Petersburg, PA 17520 Phone(717)569-8766 * Fax(717)735-4886 * 800-545-8947 Vehicle Schedule FINANCE LEASE CUSTOMER NO. 128521001 MASTER LEASE NO. 6660 EAST COAST TRUCK & TRAILER SALES 2906 ELMHURST LANE PORTSMOUTH, VA 23701 12852/001 GARY L CHRONISTER 675 WILLIAMS GROVE RD, STE #1 MECHANICSBURG, PA 17055 717-691-9333 GARY L CHRONISTER 675 WILLIAMS GROVE RD, STE 1 MECHANICSBURG PA 17055 TELEPHONE 717-691-9333 4407G158501 I?w 703172 2007 COTTRELL EZ-7509 $56,984.00 4 ALUMINUM TRAILER LIFT KIT SLIDING KING PIN MICHELIN TIRES ALUMINUM FLIPPERS 14758 DOWN PAYMENT TO DEALER 1 -$1,500.001 DEALER FEES I $977.341 EI 1-60 $1,170.67 $0.00 $1,170.67 RESIDUAL DEPR TUP MI6111111I IM 1 FA-gF TFRM FC)R THIA I]NIT IS MONTHS CAPITALIZED AMOUNTI $56,461.34 A) Minimum Term Commencement Date: For all titled vehicles, the Minimum Term Commencement Date of this Schedule is based on the delivery and acceptance date: Any titled vehicle delivered and accepted on or prior to the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first (1st) day of such month; any titled vehicle delivered and accepted after the fifteenth (15th) day of any month will reflect a "Minimum Term Commencement Date" as of the first dag of the following month. B) Surrender and Disposition: a. General Provided that the Lessee is in compliance with all of the terms and conditions of the Lease Documents, at any time prior to the end of any renewal Term, Lessee may surrender the Vehicle to Lessor for purposes of Lessor selling said Vehicle. Lessee acknowledges that any such surrender of the Vehicle shall be subject to Lessee's obligation to pay the "Return Balance Amount" (as such phrase is defined below) with regard to said returned Vehicle. b. Delivery Requirements. Lessee shall effect such surrender by (a) providing Lessor at least Thirty (30) days prior written notice of its intention to surrender the Vehicle in accordance with this provision, (b) delivering the subject Vehicle, at Lessee's expense, to a sales agent at a location designated by Lessor. Condition of Vehicle - Inspection Report - Any Vehicle returned to Lessor under any circumstances must be in as good working order and condition (ordinary wear and tear excepted), as when first received from Lessor ("Eligible Condition"). Upon delivery of the Vehicle to Lessor or its agent, Lessor or its agent shall inspect the Vehicle and shall prepare a report on the Vehicle summarizing the results of such inspection. In the event that the Vehicle is not in Eligible Condition, said report shall contain an estimate as to repairs and refurbishments, which shall be required to restore the Vehicle to Eligible Condition. A copy of such Report shall be furnished to Lessee. Promptly after the receipt of such report, in the event of repairs being required, Lessee shall inform Lessor whether it wishes to have the repairs performed or proceed with the sale of the Vehicle in AS IS condition. If Lessee authorizes repairs, Lessee shall inform Lessor whether it wishes to pay such repair expenses directly or have such expenses deducted from the proceeds of the sale of Vehicle. "This is page one of a two page document" C, L" (Initials)' This ilpage trio of a two page document" d. Return Balance Amount. "Return Balance Amount" shall mean the total of (i) an amount equal to the unamortized principal balance of the lease (including Minimum Term, any Renewal Term and any designated "Residual") calculated either (1) in accordance with the amortization schedule attached hereto; or (2) on a simple interest basis in accordance with Generally Accepted Accounting Principal FAS 13; plus (ii) interest on the amount under subparagraph (1), accruing from the date of surrender of the Vehicle to the date of receipt of any sums due under this provision, which interest shall accrue at a floating rate equal to the Prime Rate of Interest published in the Wall Street Journal ("WSJ Prime") plus 2%, which shall fluctuate with any fluctuation of WSJ Prime; plus (iii) all other charges due under the terms of the Lease Documents including but not limited to late charges, taxes, excess mileage fees, together with all other sums due relating to the returned Vehicle. e. Sale of Vehicle. Upon delivery of the Vehicle to Lessor (or its agent), and Lessee's acknowledgement of the Inspection Report, Lessor (or its agent) shall make arrange- ments to sell said Vehicle at public or private sale. Lessee shall receive prior notice of such sale as required under law. Lessee acknowledges that all Vehicles surrendered under the terms of this provision shall continue to be subject to the terms and conditions of the Lease Documents until its disposition, except that Lessee shall not be required to pay monthly installments of rent following surrender. !. Calculation of Net Proceeds From the proceeds thus realized from any such sale, there shall be deducted: (i) the actual costs and expenses incurred by the Lessor (andlor its agents) relating to such sale, together with (ii) all expenses of repair and refurbishment payable by Lessee as specified in subparagraph (c) above, with the remaining balance being referred to as the "Net Proceeds". The Net Proceeds shall be payable to Lessor. y. Disposition of Net Proceeds. (i) Excess Net Proceeds. In the event the amount of the Net Proceeds exceeds the Return Balance Amount, provided Lessee is in compliance with the terms of the Lease Documents, such excess shall be payable to Lessee; if Lessee shall be in default under the terms and provisions of the Lease Documents, Lessor shall have the right to apply such excess to the remaining indebtedness due under the Lease Documents, in its sole and absolute discretion. (ii) If the Net Proceeds are less than the Return Balance Amount, Lessee shall pay Lessor an amount equal to one hundred percent (100%) of the amount of the deficiency between the Net Proceeds and the Return Balance Amount calculated under subparagraph (d) above, payable as set forth in subparagraph (h) below, or when presented to Lessee on an invoice from Lessor. A Vehicle Closeout Schedule. Immediately following the disposition of the Vehicle, Lessee shall receive a Vehicle Closeout Schedule From Lessor, which shall provide an accounting of the Net Proceeds, costs involved and the calculation of the Return Balance Amount. Lessee agrees to pay any indebtedness. THIS SCHEDULE INCORPORATES ALL OF THE TERMS AND CONDITIONS SET FORTH IN THE LEASE. ALL DEFINED TERMS IN THE LEASE SHALL RETAIN THEIR MEANINGS WHEN USED IN THIS SCHEDULE. THE VEHICLE DESCRIBED HEREIN IS LEASED ON THE TERMS SPECIFIED IN THIS SCHEDULE AND IN THE LEASE. THIS SCHEDULE REPRESENTS THE FINAL UNDERSTANDING WITH REGARD TO THE RENT AMOUNT FOR THE MINIMUM TERM AND THE OPTIONS REGARDING THE VEHICLE. I certify that the vehicle listed hereon will be used for BUSINESS OR COMMERCIAL PURPOSES ONLY and is equipped as stated and in satisfactory condition and I accept delivery. It is agreed that the vehicle described hereon is subject to the conditions, charges, and terms contained herein. LESSEE - GARY CH I R LESSOR - ?0)ftl & COUNTRY LEASING, LLC By By aTitle C..;, Title k1- _yr- Date of Signing -'RL / 6 0'7 Delivery & Acceptance Date 3 1 I U I D_? Revised 3/04/04 4116/2007 XFHIB1T "A" Non Recourse Sale and As<.ignment of Chattel Paggr FOR VALUE RECEIVED, including but not limited to the payment of the "Purchase Price" described below, Town & Country Leasing, LLC, {"Seller"}, hereby sells, assigns and transfers to Susquehanna Commercial Leasing Company, Inc., without recourse except for the breach of any representation, warranty, covenant or other agreemer t contained herein or in the Master Agreement (as defined below) or as otherwise provided in the Master Agreement, all of the Seller's right, title and interest in and to, but none of its obligations under, the following equipment lease, retail installment contract or other chattel paper (the "Paper"), together with all monies due or to become due, renewal options, guaranties, security agreements, pledge agreerncns and other agreements, documents and instruments relating to the Paper (collectively, the "Related Agrecments" l described as follows: Lease/) nstallment Sale Contract/ See altgghed' Schedule cif Leaso sold" dated Mav 29 2007 Commencement Datc: See attached " Schedule of Leases Sold" dated Mav 29, 2007 Purchase Option Sold: See attached " Schedule of Leases Sold" dated May 29 2047 ($0 if not assigned to Buyer) Lease End Option to Buyer $ Sew attached "Schedule ofLeaseR Sold" dated May 29- 2,001 _-..w Equipment: ?e tlached - Schedule of I cases Sold" {feted Mav''!9. 2007 Other Collateral:, Related Agreements. Purchase Price: $12.511?645.08 Shown below is the unpaid balance of monies due or to become d to on the date hereof pursuant to the provisions of the Paper, which is payable in the number of monthly installments and in the amount., beginning on the commencement date: Unpaid balance: $ See attached " Sdedule of Leases S ld" dated Mav 29, Payable in ' attached " 5clredule of Leases Sold" dated M y 2? monthly installments of S See attached " Sbgdule of Leases Sold" dated Mav 29 2007 (plus any applicable tax). Payments to Buyer Commence: See attached " SghoMule of Leases Sold" dated May 29.2%L7 FISCAL AGENCY APPLIES TO THESE ASSIGNED NOT IS Seller further covenants and agrees as follows: 1. All terms, provisions, covenants, representations and warranti,,s contained in Section I and in Section 3 through I I of the Master Sale of Chattel Paper and Security agreement dated as of N-Avcmber ZL1OO3 between Buyer and Seller, as amended from time to time in the manner provided therein (the "Master Agreement"), are incorporated by reference herein, the terms defined therein are used herein as therein defined, unless otherwise defined herein except that for purposes of this Assignment (a) "'Assignment" shall refer to this Assignment (b) all references to "Paper" shall refer to the Paper transferred pursuant to this Assignment and (c) all references to ":Property", "Equipment", "Debtor", "Debtor Obligations" and "Repurchase Price" shall refer respectively to the Property, the Equipment, the Debtor Obligations, and the Repurchase Price related to, determined with respect to, or provided for under such Paper, as the case may be. 2. As security for the prompt payment in full to Buyer of Seller'; Obligations, and all Debtor Obligations with respect to the Paper, seller hereby grants and/or assigns and conveys to Buyer a continuing first priority purchase money security interest in (a) the equipment described on the Schedule attached hereto and all proceeds and products tbzrcof in any form (collectively, the "Equipment"'! including, without limitation, accounts, chattel paper instruments, insurance proccels and any claims against third parties for loss of or damage to the Equipment, or in the event Sellers rights and interest in any of fire Equipment under the provisions of the Paper is that of a security interest pursuant to the applicable UCC and not an ownership Interest, it en Seiler hereby assigns to Buyer Seller's security interest in such Equipment, and (b) all books, records, ledger cards and other property and general intangibles at anytime evidencing or relating to the Paper or the Equipment. 3. Seller represents and warrants that, as of the date of this Assignment, the Master Agreement is in full force and effect, and is legal, valid, binding and enforceable in accordance with its terms, and all rer resentations and warranties made therein with respect to the Master Agreement, this Assignment, the Paper, any Related Documents, the Debtor, any related guarantor or pledgor, or the Equipment are in all respects true and accurate on the date hereof, and there are no R -dated Agreements other than those described above and delivered to Buyer herewith. 4. All of Buyer's right, title and Interest in and to the Paper and the. Equipment acquired hereby may, without notice to or the consent of Seiler, be reassigned by Buyer and any subsequent assignee. Fiscal Aeencv. With respect to Loan Documents subject to a Loan Specification to which this Section expressly applies, (with each such set of loan Documents being termed "Applicable Loan Documents" for purposes of this provision) all of the following shall apply: (a) Assignor and Assignee hereby agree that Assignor, on behalf of Assignee and as an independent contractor, shall bill for and receive the installment payments and other sums payable under the Applicable Loan Documents, but shall not otherwise exercise any other rights, powers or privileges of Assignee under the Loan Documents except as herein provided. To the extent that taxes payable with respect to the Applicable Loan Documents and/or the subject Equipment are received from Borrower by Assignor, as fiscal Agent, such collected taxes will be remitted to the appropriate taxing authority in accordance with the terms of this Agreement. In addition, Assignor shall have the, obligation, and Assignor shall have the responsibility, to (i) maintain, or confirm that any ether person has maintained, any and all property and liability insurance policies in connection with the Applicable Loan Documents in accordance with its normal practices and procedures used with respect to its own portfolio. Assignor shall make a best efforts basis to verify that Borrower has provided casualty insurance coverage for Collateral in appropriate insurable amounts, consistent with the vedf cation process that it conducts on its own behalf with regard to its own transactions. Such inquiry shall consist of a written request for verfic ation. If no verification is received within ten (10) days of the written request, Assignor shall inform Assignee. No further efforts shall be requiicd, Assignor shall cause casualty insurance to be provided; for spc ci fie items of Equipment at the expense of Assignee when specifically instructed by Assignee Assignor shall otherwise have no obligation to cause the Collateral to be insured for casualty loss. (ii) prepare and file any continuation statements under the 'uniform Commercial Code in order to continue the perfection of Assignee's security interest in the Collateral, if any (with Assignee to reimburse Assignor for any expense incurred.) (a-1) Event of Default. If either party has actual knowledge of a default or contractually designated "event of default" ("Event of Default") under any Applicable Loan Documents, it shall promptly notify he other party thereof. As used in this Agreement, `actual knowledge" shall mean the actual knowledge of the President or any Vice President ofOssignor's Credit Department, or Assignee. Except as directed otherwise by Assignee, Assignor shall take all such action as Assignor shall deem necessary and advisable, consistent with the procedures it employs in the collection of loans for its own account, to enforce all tights and remedies of Assignee under the Loan Documents and with regard to the Collateral, or to protect the interests of Assignee therein, including without limitation, preparation and deivery to Borrowers of any and all notices containing assessments of late charges, service fees, collection expense reimbursement and other sums wt ich may be due under the terms of the respective instruments and documents comprising the Loan Documents, notices of default and/or acceleration, and other appropriate notices, requests, billings, demands and statements. In addition: (i) Assignor will use its reasonable efforts consistent with its customary and usual practices and procedures, including notice to Assignee and request for any assistance, to repossess or otherwise comparably ccnvert any Collateral relating to the subject of Loan Documents under a defaulted Loan and will act as sales and processing agent for Collateral which it repossesses. Assignor will follow such other practices and procedures as it deems necessary or advisable and as are customary and usual in the managpnent of its own portfolio, and other actions by Assignor in order to realize upon such Collateral, which practices and procedures may include reasonable efforts to enforce all obligations of Borrowers and repossessing and selling such Collateral at public or private sale in circumstances other than those described in the preceding sentence. In any case in which any such Collateral has suffered damage, Assignor will inform Assignee of such damage, g nd shall not expend funds in connection with any repair or repossession of such Collateral unless it determines in its discretion that such repair or repossession will increase the net proceeds to be realized from such actions by an amount greater than the amount of such expenses. (ii) Assignor may retain outside counsel, collection aget=cies, equipment repossession and/or liquidation companies, and such other firms, as Assignor shall deem appropriate or advisable to retain. Assignor wall not refer any Loan Documents to any collection agency on which the agency will be compensated on a percentage basis without the prior approval c ?f Assignee. (iii) After obtaining Assignee's prior approval, Assignor shall cause suit to be commenced to enforce the rights and remedies of Assignee against any Borrower in default under the terms of any item of Lo,ui Documents, or with respect to protection of the interest of the Assignee in any item of Equipment as against the Borrower (including repossession thc,eof), or other person to protect the interests of the Assignee with respect to the Property. Assignor shall periodically report to Assignee on the status of such legal actions. In any event, Assignor:shall have the option to refrain from collection of any delinquent account with a Borrower, if it shall deem it to be uncolleetible or if shall otherwise deem it prudent to refrain from collection activities with regard to that account, in which case it shall inform the Assignee that it shall not conduct further activities with respect to that Borrower. Assignee shall have the right to terminate such Fiscal Agency with respect to such Borrower, and proceed on its own account. (b) In furtherance of th. antics' intent, Assigne, hereby appoints Assignor its ,. ,tart agent and attorney-in-fact on the express terms set forth herein, and Assignor accepts such appointment. Assigr or shall act as the fiscal agent for Assignee hereunder without compensation except as herein provided. The parties agree from time to time to execs to and deliver such Applicable Loan Documents, notices, directions and other instruments as maybe necessary or appropriate to cause all monies, credit or other property to be paid, distributers or delivered to Assignor or as may be desirable in obtaining the full benefits of this Agreement and the rights and powers herein granted. (c) All monies received by Assignor as Fiscal Agent for Assignee under or pursuant to any provision of this Agreement shall be held by Assignor in trust as Fiscal Agent for Assignee for the purpose: for which they were paid, but need not be segregated in any manner from any other monies of Assignor and may be deposited by Assignor in any general account maintained by it. Within three (3) business days of receipt and identification of such monies. (in good collected funds) by Assignor as Fiscal Agent for Assignee, Assignor shall make such monies available to Assignee by wire transfer at such account as Assignee may spec fy in writing from time to time. If any monies received by Assignor from or on behalf of Borrower are subsequently dishonored or if it is otherwise determined that any such monies received by Assignor do not constitute good funds, then Assignee, promptly upon request from Assignor, will remit to Assignor in good funds such monies that had been remitted by Assignor to Assignee on account of the affected payment.. (d) Without the prior written consent of Assignee, Assignor shall not enter into any agreement or take any action with the intention of directly or indirectly (i) permitting any material amendment cr modification of, or deviation from, any of the terms of any Applicable Loan Documents; or (ii) accelerating or otherwise changing the payna:nt terms of any Loan Documents.. (e) Assignor undertakes to perform as Fiscal Aivrit on behalf of Assignee such duties and only such duties as are specifically set forth herein and no implied covenants or obligations shall be read into this Agreement against Assignor. Except as provided herein, as Fiscal Agent, pursuant to the terms of this Section, Assignor is entitled to use is discretion in respect to exercising or refraining from exercising any rights, or taking or refraining from taking any action which may be vested in Assignor under each Applicable Loan Document, or which Assignor may be entitled to take or assert under any Applicable Loan Documents or any other agreements or instruments, and Assignor shall not be liable to Assignee for any action taken or omitted to be taken by it hereunder or pursuant hereto, except for the failure to make available promptly (after receipt and. final collection) to Assignee such sums as are required to be remitted to Assignee pursuant to subpart (c) of this Section. In acting in the future as Fiscal Agent for Assignee hereunder, Assignor may rely and shill be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other Loan Documents or document reasonably believed by it to be genuine and to have been signed or presented by the proper parts or parties; and Assignor shall not be bound to make any investigation into the facts or matters stated in any such resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other Loan Documents or document. Assignor may exercise its powers and perform its duties as Fiscal Agent by or through such attorneys, agents and servants as it shall appoint, and it shall be entitled to the advice of counsel in anything done or omitted to be done in accordance with such advice; and Assignor shall not be required to take any action nor shall any prbvision herein set forth be deemed to impose a duty on Assignor to take any action, if Assignor shall have been advised by counsel that such action s contrary to the terms of any Applicable Loan Documents or is otherwise contrary to law. (f) No provisions hereof shall require Assignor to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties as fiscal agent for Assignee her<under. Any out-of-pocket expenses incurred by Assignor in connection with its performance of its obligations under this Section 8A shall be be are by Assignee and Assignee shall reimburse Assignor for any such out-of-pocket costs and expenses incurred by Assignor. (g) Assignee hereby agrees to indemnify, defend and hold Assignor harmless from and against any and all losses, damages, suits, claims, demands, actions, taxes, fees, expenses and other harms whatsoever that arise out of or are attributable to the undertakings contemplated in this Section, including (without limitation) any claim, suit, denu nd or other action by (i) any Borrower, guarantor, trustee, debtor-in-possession or other person endeavoring to collect any amount paid to Assigno • pursuant to the Fiscal Agency established by this Section, (ii) any local, state or federal governmental authority seeking to recover taxes, fees or other charges relating to any Applicable Loan Documents, the scheduled payments and other amounts payable thereunder, or the Equipment covere thereby and (iii) any Borrower under any Applicable Loan Documents or related guarantor, for any reason whatsoever unless caused by the neglience or willful misconduct of Assignor. (h) (i) 'on Fiscal ? upon a material default by Assignor hereunder which is not cured by Assignor within twenty (20) days written notice thereof to Assignor, Assignee shall have the right to terminate this fiscal Agency upon 30 days written notice to Assignor. Upon tcmtination Assignor shall deliver to Assign:e, at Assignor's expense, all loan files in Assignor's possession as well as any and all documents and materials related to the loans. Assignor shall have the right to retain copies of all said files and materials. For purposes hereof, the following shall constitute "material defaults": (1) failure to remit any monthly payment to Assignee or failure to transfer, deposit or other delivery as required to be made pursuant to this Agreement; (2) the filing of a voluntary bankruptcy petition by Assignor or an involuntary bankruptcy petition against Assignor which involuntary petition remains in force and unstayed fora period of 90 business days; (3) a breach of any representations and warranties of Assignor which affects the rights of Assignee and shall continue unrcmedied for a period of 30 days after the earlier of (i) the date Assignor receives written notification from Assignee or (ii) the date on which Assignor is required to provide notice to Assignee of such incorrect statement in accordance with this Agreement; (4) any delegation of Assignor's duties whic h is not expressly authorized hereunder; and 0 . , t (5) failure to obsei. ,r perform in any resput to any other covenant or a. _.;meat of Assignor pursuant to this Agreement which affects the rights of Assignee and continues unremedW for a period of 30 days after Assignor receives written notification from Assigner. Notwithstanding the foregoing, any delay in or failure of performnice referred to above will not constitute a "material default" if such delay or failure was caused by an act of God or the public enemy, acts of declarec or undeclared war, public disorder, rebellion or sabotage, epidemics, landslides, lightning, fire, hurricanes, earthquakes, floods or similar causes. 00 Termination by Assignor. Assignor may terminate this Agreement upon 30 days written notice to Assignee provided Assignor is not administering or servicing any loan pursuant to this Agreement at the time the notice is delivered or thereafter. Upon termination Assignor shall deliver to Assignee, at Assignee's expense, all loan files in Assignor's possession as well as any and all documents and materials related to the loans. Assignor shall have the right to retain copies of all said files and raterials. (iii) In either event of termination, Assignor shall provi<.le Borrowers with written notice and instruct Borrowers to make all installment payments and all other amounts due under the Applicable Loan Aacuments to Assignee or a successor fiscal agent. Buyer: SUSQUEHANNA PATRIOT COMMERCIAL LEASING COMPANY, INC. Fay: L r Title: i Seller: TOWN & COUNTRY LEASING, LLC By: - Naive: ?K N P. SOUDER - Title: VP Of: SYNDICATION. 1010 <p N r 0 g g~ O M? C y 7 d? c rO ? 1 i?? c r? r 60 / wo Nl irN N ffl d4 J 7 o rS r r C4p tQppO*W ?ppC p?M Mpp s{spa po Wpp8?W88?O 8(p1MSSD8 WWWWLL.WWWW Y a ? C Obi 00 ??'C r On MtD^^ O u? GD. ?U ?9 c0 tl ? aaaaa¢aaaa a aaaa Iw HWH W O? D O E H2.02.01ZO ? X ss=SSSa ra UUUUUU UU 4 JJJJJJ.:.!-!J ?j cv v i07/12/200B 19:29 7176917088 G. L..CHRCNISTER 15-Ju1-2000 11:38 !1M Suaquahanu+ Patrtolt CLC 6107059941 Susquehanna ,A ADDENDUM TO V UCLE SC UM A11dpW 31J.yQvB"-pM CO)OMCIAL f[KANC1s TW- Law= GARY L. Clmowlwl'SR AV Wnort: CWSOWATM OF CJW NL409RS 3102(0, 510461, 6a 22? 6=3. 610114703771,703172 TWO A4ftb m 10 20 VIM6 S&ed ft t" W) *4 WWW *0 Yad1101a Sabodnlea b? nerd batwar *' ,lbova "W* in"Ilk" lard msm 1,asaalasieby aa6?ottraadAwilleaeto CWTo tdle EquWaet AaarAtptiaa A Payest !fa Wnta L"" W=W Fnq=ntFn posy T~ Sethi TA.7 aait 066 Tbo Wm mnd all alm 4e00t OM tva io Q an *94wlOA shall i0w teed: 13'flta(A1i(3? , ' 601dONPtii?R1d STAMP40 71101Otr 2 RIWAL PAYUMMB O ShMOAO M WWW ITAR1M 911 SO, d 1CJ;TiVTAL PAYMEM 4p !4,000:00 Plot.MOi4'MI START12 31111109, 82 MWAL PAY6tE M @ 912,035.49 M MMV79 PMCHASP CVTION $1.00 'AM01 MWWW'r IMCM-VW - lNPRD09X4dIQ63437b 2007 FMMn T TRACM-VW - IMDr997gC' Wfi66309 ',1007 WRSTzm sTAikimcm-YQd - SWSABW7PX67109 4007 FORT TIWCK- VW - $FRW7os3B4N4=30 2W600iTIML TRAUM-VW M S MAN14456t704240t 4007 CCY17Rl1 L Z'AA=- VIN OW1446701 !3241 2007 C MT&ILL T1tpM-VN w 10W=440701Q9601 Ibis Addaedam 1D VApipowd L Am ftm mmt alsall be bloAta and cftc Y4 whau moot t by as aglow of Ax*mt st tb haaNS Ot'Qaa M1 ta'tiADwf? MOat?blagy CgtrRy, Parrwylnaiar fbalt>K deaaud W hsN b+s ? aaadt !t P?llveuia aldr ?OQR fo[ 1etAl ++g1?IlY?IK{, ?11?11110 /tlVK'IMd 1y !? am7?yYd tii ?OrQ1nCC W? 1t ! I?W? al{t11C (`i9R 1?IN11? oi'raaarybsW%. Ums itomhoy and vohmtl * cftm%sad oohmft 1p ft)xb&@Wn c fda Mo ftmlmy Cease f, Paml04an14CastadCoaoott now *A Udbdft* DW tcmat tttwown, 1 Oltbittacp aatylnwits pmFaa of oo dim" *a t161a and liah M" of the parNm to tha AddaoM to i goOaaat LetW Aapaaai. Laws slap lawwbgly and voh>rttab!1( wOvm dwrl&lsttiai by Jay lit my =aft or pvww dbaq bcot &mdw*b Add*Wft to galptnant Leaee AaPo moo. PAGE 02 1% poft immd sad v= *A a Wm enpy, pbotoc W, or imba6N of" doommel w1t, dv* rdgWM GWW *A be Beim 4 td to, or*ial, and ahall be doomed v is bb,&& valid, malme, m d wfta & a a ml di**dAW&ft0 doc=mmt sod wftg &R afl palposma laaltslhag all ran, of sarldm= and ffie'bW svWm a mlm- lN WrWM WM=, lb pwft hereto have to ask. dk* hW& sad =& tb lMS ArddW On sad aobtowlatO to x* of a vm aspy hamcf on the ddi(s) iad batow. k O?im >wrtn and We) (Dam) at) (ato) ciaty L. Cbtuobive P : wid Gummtw A, EXHIBIT "K" s ' 14. EXPLANATION OF RIGHTS NOTICE AND WAIVER OF RIGHTS REGARDING WARRANTS OF ATTORNEY, EXECUTION RIGHTS, AND WAIVER OF RIGHTS TO PRIOR NOTICE AND JUDICIAL HEARING This NOTICE AND WAIVER of rights is made by each of you and given to Town & Country, Inc. (herein called Lessor) in connection with the above-described documents. IT IS IMPORTANT THAT YOU CAREFULLY READ AND UNDERSTAND THIS DOCUMENT. WHEN YOU SIGN YOUR NAME IN THE SPACE PROVIDED BELOW YOU ARE ACKNOWLEDGING AND REPRESENTING TO TOWN & COUN- TRY, INC. THAT YOU HAVE READ AND UNDERSTAND THE CONTENTS OF THIS DOCUMENT. Each of you will be executing and delivering to Lessor a Lease Agreement and/or other documents which grant to Lessor, among other things, the power and authority to enter JUDGMENT BY CONFESSION against each of you, and to exercise rights of execution, levy, garnishment, seizure of your property and the like. Other than notices required under the Lease and Surety Agreements these rights and powers may be exercised without a prior hearing of any nature. By executing and delivering this Notice and Waiver, each of you knowingly, voluntarily, and intelli- gently waive your rights to prior notice (except for notice required under the specific terms of the Lease and Surety Agreements) and a hearing or other judicial proceedings to determine your rights and liabilities in connection with the Lease and Surety Agreements. By signing this Notice and Waiver, you acknowledge that you understand Lessor may obtain a judgment against any one or more of you, and execute upon and seize forthwith your property and assets without the opportunity to raise any defense, set-off, counterclaim, or other claim that you may have. Each of you knowingly, voluntarily, and intelligently waive your rights to any prior notice (except for notice required under the specific terms of the Lease and Surety Agreements) or judicial determination as a material part of the consideration for this transaction and in order to induce Lessor to enter into this transaction. Each of you acknowledge and represent that you have consulted (or have had an opportunity to con- sult) with legal counsel of your choice, and with such other experts and advisors as you deemed necessary, in connection with the execution and delivery of the Lease and Surety Agreements (including without limitation the provisions of the Surety Agreement authorizing the confession of judgement and the execution upon and seizure of your property and assets without the opportunity for prior notice [except for notice required under the specific terms of the Lease and Surety Agreements] or judicial determination of any nature). I/We further acknowledge that the credit accommodation granted by Town & Country, Inc., to me (us) is not a consumer transaction which is defined as a credit transaction in which the party to whom credit is offered or extended is a natural person, and the money, property or services which are the subject of the transaction, are primarily for personal, family or household use. IN WITNESS WHEREOF, and intending to be legally bound, the undersigned have executed this Notice and Waiver this day of ?u = Ct& V = 040 SEALED AND DELIVERED in the presence of: CHRONISTER (Name) (Name) (Name) (Name) IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA OFFICE OF THE PROTHONOTARY 1 Courthouse Sq. Suite 100 Carlisle, PA 17013 TO: GARY L. CHRONISTER 10 Bloserville Road Carlisle, PA 17013 You are notified that Susquehanna Commercial Finance, Inc., has caused a judgment by (X) Confession to be entered against GARY L. CHRONISTER with the Prothonotary of Cumberland County. The judgment was entered on 8 , 2010 to No. 3 f-S-6 with the Court of Common Pleas of Cumberland County - Civil Division. The judgment is in the amount of $185,535.00, plus post judgment interest. Prothonotary B Deputy Prothonotary 9 SUSQUEHANNA COMMERCIAL FINANCE, INC. Plaintiff vs GARY L. CHRONISTER :No. tp_ 3,S5_0 Defendant IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION- LAW _J CERTIFICATE OF ADDRESS ?,..T • T_ TO THE PROTHONOTARY: I, Brian C. Engelhardt, Esquire, attorney for Plaintiff in the above-caption ed-yrocetding, do hereby certify that the name and current address of each party's attorney of record,?or thii.,name' and current address of each unrepresented party are as follows: L7 -< Plaintiff: Brian C. Engelhardt, Esquire Susquehanna Commercial Finance, Inc. 1566 Medical Drive Ste 201 Pottstown, PA 19464 Defendant: GARY L. CHRONISTER 10 Bloserville Road Carlisle, PA 17013 Dated: May 27, 2010 By: Brian C. Engelhardt, Esquire Attorney for Plaintiff 8 SUSQUEHANNA COMMERCIAL FINANCE, INC. Plaintiff vs GARY L. CHRONISTER Defendant P+N IN THE COURT OF COMMON PLEA- S -a CUMBERLAND COUNTY, PENNIYLVTIA' CIVIL ACTION- LAW r, No. -r. /d -3 ss? AFFIDAVIT OF ANNUAL INCOME Before me, the undersigned authority, personally appeared Brian C. Engelhardt, Esquire, who being duly sworn according to law, doth depose and say that the Defendant's Annual Income is in excess of $10,000.00. Dated: May 27, 2010 ATTORNEY FOR PLAINTIFF By: Brian C. Engelhardt, Esquire 1566 Medical Drive, Suite 201 Pottstown, PA 19464 Pa. ID No. 23204 800-786-0004 Ext 136 Fax 610-705-9546 brian. engelhardtgsusquehanna. net The above affidavit is made subject to the penalties of 18 Pa. C.S.A. section 4904 relating to unsworn falsification to authorities. Dated: May 27, 2010 B j/ Bn nge ar , e 6fe f 'X 10 SUSQUEHANNA COMMERCIAL IN THE COURT OF COMMON PLEAS FINANCE, INC. CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION- LAW vs : GARY L. CHRONISTER No. 35-57-6 C7 N CID Y PLAINTIFF'S AFFIDAVIT/AVERMENT `- CONFESSION OF JUDGMENT FOR MONEY: Pursuant to Pa. R. C. P. 295 1 (a)(2)(ii), I certify that this Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. (a) A consumer credit transaction means a credit transaction in which the party to whom credit is offered or extended is a natural person and the money, property or services which are the subject of the transaction are primarily for personal, family or household purposes. Dated: May 27, 2010 ATTO FOR PLAINTIFF B Brian C. ng ardt, Esquir 1566 Medical Drive, Suite 201 Pottstown, PA 19464 Pa. ID No. 23204 800-786-0004 Ext 136 Fax 610-705-9546 briar.engelhardtgsusquehanna.net The above affidavit is made subject to the penalties of 18 Pa. C.S.A. section 4904 relating to unsworn falsification to authorities. Dated: May 27, 2010 By: Bri. Engelhardt, Esquire 11 SUSQUEHANNA COMMERCIAL FINANCE, INC. Plaintiff vs GARY L. CHRONISTER IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION- LAW : No. 16 - 3 5-SO NON-MILITARY AFFIDAVIT Before me, the undersigned authority, personally appeared Brian C. Engelhardt, Esquire, who being duly sworn according to law, doth depose and say that the Defendant, GARY L. CHRONISTER fdba MULBIL TRUCKING is not in the Military or Naval Service, based upon the foregoing facts as of the date of this affidavit: Age of Defendants: Sui Juris Present Place of Employment: Unknown Present Place of Residence: 10 Bloserville Road Carlisle, PA 17013 4CC.ardt, E uire Attorney for Plaintiff ca c- C.) ?a O? The above Affidavit is made subject to the penalties of 18 Pa. C.S.A. section 4904 relating to unsworn falsification to authorities. Dated: May 27, 2010 By: Bri40.--Eng?elha-rdt, Esquire 12 ?`r? SUSQUEHANNA COMMERCIAL IN THE COURT OF COMMON PLEAS FINANCE, INC. CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION- LAW vs ; GARY L. CHRONISTER s_ a No. 35 5-0 r d -n + V NOTICE TO DEFENDANT PURSUANT TO 42 Pa. C.S. SECTION 2731.1 ' TO: GARY L. CHRONISTER fdba MULBIL TRUCKING 10 BLOSERVILLE ROAD 7. + CARLISLE, PA 17013 Pursuant to 42 Pa.C.S.A. Section 2737. 1, the following instructions regarding the procedure to follow to strike the judgment in this matter is hereby provided: 1. The procedure to follow to strike a judgment by confession is set forth in Pa.R.C.P. 2959, which provides as follows: (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 country in which the judgment was originally entered, in any country to which the judgment has been transferred or in any other country 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 of rights of notice and hearing was not voluntary, intelligent any 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 2956.19(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. 13 (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. 2. Under 42 Pa.C.S.A. Section 2737. 1, you are entitled to costs and reasonable attorney fees as determined by the court if you are incorrectly identified and had judgment entered against you. ATTO R PLAINTIFF Brian C. Engelhardt, E quire 1566 Medical Drive, Suite 201 Pottstown, PA 19464 Pa. ID No. 23204 800-786-0004 Ext 136 Fax 610-705-9546 brian.engelhardtnsusquehanna.net 14