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HomeMy WebLinkAbout10-4213.W COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. 10 - 14A13 (2 IV Plaintiff CONFESSION OF JUDGMENT V. ANDREW SAUERS, Defendant PREVIOUSLY ASSIGNED TO: N/A CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against the Defendant as follows: a. Principal b. Interest to June 18, 2010 C. Late Charges d. Attorneys' Fees TOTAL: i cf` rn iz $ 9,000.00 $ 226.87 w $ 10.38 +flY -=' 922.69 $10,159.94, plus interes,?#het:a expenses, fees and costs Respectfully submitted, McNees Wallace & Nurick LLC Date: JuneZZ 2010 By: eo rCourt huffEsquire reme ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff *a-7-50 p o ATrq of 19MC/ e* aay,9q .t COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. Plaintiff : CONFESSION OF JUDGMENT V. ANDREW SAUERS, Defendant PREVIOUSLY ASSIGNED TO: N/A COMPLAINT FOR CONFESSION OF JUDGMENT UNDER RULE 2951 1. The Plaintiff, PNC Bank, National Association, is a national banking association organized and existing under the laws of the United States of America with a principal office located at 4242 Carlisle Pike, Camp Hill, PA 17011 ("Plaintiff) 2. The Defendant, Andrew Sauers, is an adult individual whose last known address is 48 Wyndmere Drive, Williamsport, PA 17701 ("Defendant'). 3. The Defendant executed and delivered to the Plaintiff a Commercial Guaranty dated August 4, 2006 ("Guaranty"), a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "A" and made part hereof. 4. The Defendant executed and delivered to the Plaintiff a Disclosure for Confession of Judgment, a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "B" and made part hereof. 5. Under the Guaranty, the Defendant guaranteed to the Plaintiff the payment of all amounts due to the Plaintiff by Chilitech Internet Solutions, Inc. ("Debtor") under the Promissory Note dated August 4, 2006 , in the original principal amount of Ten Thousand Dollars ($10,000) ("Note"), a true and correct photostatic reproduction of the original of which is attached hereto as Exhibit "C" and made part hereof. 6. The Debtor is in default of the Debtor's obligations to make payment to the Plaintiff as required in the Note, and the Defendant is in default of the Defendant's obligations to make payment to the Plaintiff under the Guaranty. As a result of the Debtor's and the Defendant's defaults, all outstanding amounts as provided in the Note and the Guaranty are now due and payable in full, and payment of such amounts has been demanded by the Plaintiff. A copy of the Plaintiffs demand dated March 26, 2010, is attached hereto as Exhibit "D" and made a part hereof. 7. An itemized computation of the amount due to the Plaintiff from the Defendant under the Guaranty as of June 18, 2010, is as follows: a. Principal $ 9,000.00 b. Interest $ 226.87 C. Late Charges $ 10.38 d. Attorneys' Fees 922.69 TOTAL: $10,159.94 8. Interest continues to accrue at the variable rate per day provided in the Note through the date of payment, including on and after the date of entry of judgment on this Complaint. 9. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 10. There has not been any assignment of the Guaranty or the Note. 11. Judgment has not been entered on the Guaranty in any jurisdiction. WHEREFORE, Plaintiff, PNC Bank, National Association, demands judgment against the Defendant, Andrew Sauers, in the amount of Ten Thousand One Hundred Fifty-Nine and 94/100 Dollars ($10,159.94), plus interest at the variable rate per day provided in the Note through the date of payment, including on and after the date of entry of judgment on this Complaint, and for other expenses, fees and costs to which the Plaintiff may be entitled. Respectfully submitted, McNees Wallace & Nurick LLC Date: June 010 906ffrey . Shuff, Esquire uprem Court ID #24848 100 Pi a Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, Plaintiff V. ANDREW SAUERS, Defendant DOCKET NO. CONFESSION OF JUDGMENT : PREVIOUSLY ASSIGNED TO: N/A VERIFICATION I, Rhonda Davis, Officer for PNC Bank, National Association, being authorized to do so on behalf of PNC Bank, National Association, hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. BANK, NATIONAL ASSOCIATION Date: ?' 1 $ By. 1- Rhonda Davis Officer .`0/1.9,/2010 09:55 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 121004/023 (IrMle 3 of 4) COMMERCIAL GUARANTY As as In t" shaded area are for Lender's use only and do not Illnk the appRoabiiity Of this document to any particular ban or item. Any kernabove containlno • •' • has been ornitfed due to text Nngth Nrmodone Borrower: CHILITECH INTERNET SOLUTIONS. INC. (TIN: Lender: iP%IC Bank. National Association 23-30460581 lousimas Uniting 210 MARKET STREET 4242 Carlieie Pike WILLIAMSPORT. PA 17701 Camp Hal, PA 17001 Guarantor: ANDREW SAUMS (SSNI 16546.7755) 40 WYNOMERE DRIVE WILLIAMSPORT, PA 17701 CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Gverento absolutely and unconditionally guarantees full and punctual payment and satisfaction of the Indebtedness of Elorrower m Lender, and the performance and discharge of all 8wrowsr'a obligations under the Note and the Related Documents. This is a guaramy of payment end performance and not of collection, ad Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone ales obligated to pay the Indebtadnese or against any collateral scouring the Indebtedness, this Guaranty or any other guaranty of the Indebtedneas. Guarantor will make env payments to Lender or Its order, on demand, In legal tender of the United Slates of America, in same-day funds, without sat-off or deduction or countarclelm, and will otherwise perfbrm Borrower's obligations under the! Note and Related Documanta. Under this Guaranty, Guarantor's Ifabillty is unlimited and GuarsMor's obligations are continuing. CONTINUING GUARANTY. THIS IS A 'CONTINUING GUARANTY` UNDEA WHICH GUARANTOR AGREES TO GUARANTEE TH£ FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS! OF BORROWER TO LENDER. NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUAAANTOR'S OBLIGATIONS SAND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THI: OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME. DURATION OF GUARANTY. TINS Guaranty will take affsa when received by Lander without the necessity of any acceptance by Lander, or any notice to Guarantor or to Wrrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of any nodes of revocation shall have been fully and finelly-paid and satisfied and all of Guarantor's other obligations under this Guaranty shall hove been performed in full. If Ouarantor sleets to revoke this Guaranty. Guarantor may only do so In writing. Gurentor's written notice of revocation must be mailed to tender. by cardfied mail, at Lender's address listed above or such other place as Lander may designate in writing. Written revocation of this Guaranty wig sooly only to advances or new Indebtedness jested after actual receipt by Lander of Guarantor's written revocation. For this purpose and without limitation, the term 'new Indebtednesst does not include the Indebtedness which at the time of notice of revocation Is contingent, unllquideted, undetermined or not due and which later becomes absolute, liquidated, determined or due. This Guaranty will continua to bind Guarantor for all the indebtedness incurred by ECreower or committed by Lender prior to receipt of Guarantor's written notice of revocation. Including any extensions, renewals, subet[Wdons or modifications of the Indebtedneso. All renewals, extensions, subatltutions. and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. Phis Guaranty shall bind Guarantor's estate as to the btdebtednew created both before and after Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarentor's executor or administrator or other legal representative may terminate this Guaranty In the same manner in which Guarantor might have terminated it and with the some effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not effect the liability of Guarantor under this Guaranty. A revocation Lander receives from arty one or more Guarantors shall not effect the liability if s Guarant ng Gura, prier ere uararntar may from tare m limo bas sore dofiera (30.00!. GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lander, either before or after env revocation hereof, without notice or demand and wlthart lessening Gurarngr's NabNty under this Guaranty, from time to Gv*: (A) prior to revocation an set forth above, to make one or mare additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or othsrwiss to extend additional credit to Borrower, (R) to alto. compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, Including In raesss and daoresses of the rata of interest on the Indebtedness; extensions may be repeated and may be for longer than the original ban Mint; ICI to aks and hold security for the payment of this Guaranty or the Indebtadreas, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any suoh security, with or without the substitution of new collateral. (0) to release, an?bstitute. ogres not to we, or deal with any one or more of Borrower's sureties, endorses, or other guarantors on any terms or in any manner Lender may choose; CO to determine how, when and what application of paymenu and credits shall be made on the Indebtedness; (F) to apply such asourity arxl direct the order or manner of sale thereof, Including without limitation, any nonfudicial sale permitted by the terms of the controlling security regreemant or deed of thirst, as Lender In its discretion may determine; 1431 to sell, transfer, assign or grant participations in all or any part Othe Indebtedness; and (H) to assign or transfer this Guaranty In whole or in part. GUARANTOR'S REPANSENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no -am sarations or agreements of any kind hew bear made to Guarmor which would Ilmit or qualify in ante way the terms of [firs Guaranty,- (a) this Guaranty is executed at Borrower's request and not at the request of Lender; 40 Guarantor has fuB power, right and suthority to enter Into this Guaranty; (DI the provisions of this Guaranty do not confect with or result in a default under any agreement or other instrument binding upon Guarantor end do not result in a violation of any low, regulation, court decree or order applicable, to'3uarentor, (6) Guarantor has not and WIN not, without the prior written consent of Lender, sax, lease, assign, encumber, hypodeoote. tronrinr, or otherwiss dispose of all of substantially eil of Guarantor's emu, or any interest therein; (F) upon Landees request, Guarantor will provide to Lender financial and tract informstion In form acceptable to Lender, and all such financial Information which currently has bean, and all future financial Information which WIN be provided to Lender Is and WIN be true and correct In all materfal respects and fairly present Guarantor's ffnenclaf condition as of the dates tna financial Mformation is provided. 4431 no material adverse change has occurred in Guarantor's; financial condition since Ow date of the most room fhyncial statements provided to Lender and no event has occurred which may materially adversely affect Guarantors financial condition; (H) no IWgatlon, claim, invasoption, administra0vs proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; II) Lender has mode no representation to Guarantor as to the ereditworlhinesa of Borrower; and (J) Guarantor has established edequets means of obtaining from Borrower on a continuing basis Information regarding Borrowers financial condition. Guarantor agrees to k )e t, bi4 "A'? Q;/19/2010 09:57 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 10005/023 (Page 2 of 4) COMMERCIAL GUARANTY (Continued) Page keep adequately informed from euch means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor k,rthw slimes that Lander shall have no obligation to disclose to Guarantor env informsow or documents acquksd by Lander In the courts of its reletlonship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable low. Guarentor waives any light to require Lander (A) to continue lending money or to extend other credit to Borrower, 1% to make any presentment, protest, remand, or nods of any kind. Including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonactlon on the part of Borrower, Lander, any surety, endorser, or other guarantor in carmsction with the Indebtedness or in connection with the creation of new or additional Iran of obligations; 1C) to resort for payment or to proceed directly or at once against any person, including &prewar or any other guarantor, (0) to proceed directly against or exhaust any collateral held by Lender from Borrower, .,any other guarantor, or any other pamarc (F) to give notice of the tarrne, time, and place of any public or private sale of peroona) property security hold by Lander from Borrower or to comply with any other applicable provisions of the Uniform Commercial Cole; IF) to pursue any othenromedy within Lender's power; or (G) to commit any act or arnisafon of any kind, of at any time, with respect to any matter whatsoever. Guarantor also waives any and all fights or defenses based on suretyship or Impairment -:rf collateral including, but not limited to, any rights or defenses ariaing by resson of (A) any "ono action' or 'antFdsfl lency' law or any oorwr law which may prevent Lander from bringing any action, including a claim for deficlemcy, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exarolse of a power of sale; 18) any election of mmdlaa by Lender which destroys at otherwise adversely affects Guarantor's Subrogstion rights or Guarantor's rights to proceed agaW Borrower for mirnbursement, including without limitation, any bas of rights Guarantor may suffer by reason of any law limiting, qualifying, Of discharging thadrdebtedness; IC) any disability or other defense of Borrower, of any other guarantor, or of any other person, or by reason of the cessation of Borrower's liability from any cause whatsoever, other than payment In full In legal tender, of the Indebtedness; (0) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; IF) any etlrtuts of limitations, if at my time any notion or suit brought by Lander against Guarantor is commenced, there Is outstanding Indebtedness which Is not barred by any !applicable statute of limitations; or IF) any defenses given to guwwMm at low or in equity other than actual payment and performance of ithe Indebtednaea. If payment is merle by Borrower, whether voluntarily or otherwlaa, or by any third party, on the Indebtedness and thereafter Lender Is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or few for the relief at debtors, the Indebtedness shag be considered unpaid for the purpose of tits enforcement of this Guaranty. Guarantor further waives and ogress not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the ®orrower, the Guarantor, or both. GUARANTOR'S UNDi RSTANDiNG WITH RESPECT To WAIVERS. Guarantor warmnta and egmaee that each of the waivers not forth above is made with Guarantor's full know"* of Its significance and consequences and that, under the circa mstenm, the waivers are reasonable and not contrary to public policy or tow. If ony such waiver is determined to be contrary to airy applicable law of public policy, such waiver shag be effeeti m orgy to the extent permitted by law or public policy. LMER'S RIGHT OF SETOFF, To the extent permitted by applicable law. Guarantor gram Lander a contractual security Interest in, and hereby assigns, conveys, degeers, pledges and transfers to Lender all of Guarantor's right, trtie end interest In and to Guerantor's sccounts with lender Iwhether checking, savings or some other account), including without Imitation all accounts held jointly with someone also and all accounts Guarantor may open In the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would to prohibited try law. Guarantor authorizes Lender, to the extant permitted by applicable law, to charge or setoff all SUMS owing on that Indebtedness against any and all such accounts and, at LaMar's option, to administratively frieze all such seeou nts to allow Lander to protect Lender's charge and "toll rig? a provided In this paragraph. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter created, Shag be superior to any c aim that Guarantor may now have or hereafter acqulm against Borrower, whetter or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsosvet, to any claim that Lander may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary gqulda*m, or otherwise, the assets of Borrower applicable to . the payment of the claims of both Lender and Guarantor shag be paid to LaMar and shell be first applied by Lender to the Indebtedness. Guarantor does hereby assign to Lender all claims which It may have or acquire against Borrower or against any assignee or trunwe in bankruptcy of taorowar, provided however, that such assignment shall be effective onlyrfo? the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit egresmatts now of hereafter avidenoing any debta at obligations of borrower to Guarantor shall be marked with a legend that the same are subject to this 13uarenty and shell be delivered to Lender, Guarantor agrees, and Lender is hereby authorized, In the name of Guarantor, from time to time to ?flle financing statements and continuation statements and to exactrm documents and to take such other actions as Lender deers necaseary ormppropriete to perfect, preserve and enforce its rights under this Guaranty. i ISC8A^NR= PROVISI01114. The following miscellaneous provisions are a port of thy,Gueranty! Amendments. This Guaranty, together with any Related Occuments, constitutes the Entire understanding and agreement of the parties so to the matters sat forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or emandmeM. Attameys' Fees. Enpawas. Guarantor ogress to pay upon demand all of Lender's costs and expenses. Including Lender's attorneys' fees and Lerder's egal expenses. Incurred in connection with the enforcement of this Guarsftty. Lender may hire or pay sorraena also to help enforce this Gumanty, and Guarantor shall pay the .costs and o4parses of such qnforyerment. Coats and Expenses include Lander's attorneys' fees and legal expanrsa whether or not owe Is a lawsuit, Irofudlrga attorneys' tees and legal expenses for bankruptcy proaaedings Uncludlg Efforts to modify or vacate any automatic stay or kyunedon),,appeals. and any anticipated post judgment collection services. Gumantor also shall pay all court costs and such additional fees as may be directed by the court. Captem Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to Interpret or detins the pmolsions of this Guaranty. Govtrntng Low. This Guaranty Will be governed by faderN low appli m IM to Landes arid, to the extant not pr i 1 ii; 1 d by ledarr law. the laws Of the Cammornmealth of Pvmwyhmrdp without regard to its oordk of law pravtslo s. This Gurarfty has been accepted by Lander In the Commoie wsafth of PerilsylvaNe. Chol6a of Venus. If them is a lawsWtr Guarernof agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commomwerot of Permyivenle. In"ration. Guarantor further agrees that Guarantor hoe read and fully understands the terms of this Guwamyt Guarantor has had the opportunity to be advised by Guarantor's attomay with respect to this Guaranty; the Guaranty tufty reflects Guarantor's intentions end Perol . 03/19/2010 09:59 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 006/023 (Page 3 of a) COMMERCIAL GUARANTY Continued) Page 3 evidence is not rewired w interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims, damages, and costs (including London's attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. bterpretstion. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and whore there is more then one harrower named in this Guaranty or when this Guaranty is sxeeuted by more then one Guarantor, the words 'Borrower' and "Guarantor" respectively shall mean all and any one or more of thorn. The words 'Guarantor,' •13orrower,1 and "Lender" Include the heirs. successors, assigns, and trantfereae of each of them. It a court finds that any provision of thit; Guaranty Is not valid or should not be enforced, that feet by Itself wI1 not mean that the rest of this Guaranty will not be valid or serforcad. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any ohs or more of Borrower or Guarantor are eomoretlons. partnerships, limited liability companies, or -Amilar "is*. It is not necessary for Lender to Inquire into the powers of Borrower at Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting to act on their behalf, end arty Loan Indebtedness made or crested In reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law, any notice required to be given under this Guaranty shall be given In writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually, received by tsbfaesimils lunia$$ otherwise required by low), when deposited with a nationally recognized ovamighz courier, or, if mailed, wham deposited M the United States mail, as first etas, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor Shan be in writing and shell be effective upon. delivery to lender to provided In the section of this Guaranty entitled 'DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving format written notice to the other parties, specifying that the purpose of the notice Is to changmthe party's address. For notice purposes, Chorentor agrees to keep Lander informed at all times of Guarantor's current address. UNessiotherwise provided by applicable low, if there is more than one Guarantor. any notice given by Lander to any Guarantor Is deemed to be no-ace given to all Guarantors. No Waiver by Lender. Lsmder shell not be deemed to have waived any tights under title Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lander in smoking any right shall operate as a waiver of such right or anther right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demornd strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lander, nor any course at dealing between Lander and Guarantor, shall constitute a waiver of any of Lender's rights or of any o,' Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute - contlnuing consent to subsequent Instances where such consent Is required and In all cases such consent may be grantad or withheld in the sole discretion of Lender, Successors end Assigns. The terms of this Guaranty shag be binding upon Guarantor, and upon Guarantor's heirs, personal representatives, successors, and assigns, and ONE be enforceable by Lender and its successors and assigns. WAIVER OF JURY TRIAL GUARANTOR IRREVOCABLY WAIVES ANY AND ALL RIGHT GUARANTOR MAY HAVE TO A TRIAL BY JURY IN ANY ACTION. PROCEEDING OR CLAIM OF ANY NATURE RELATING TO THISIGUARANTY, ANY RELATED DOCUMENTS, OR ANY DOCUMENTS EXECUTED N CONNECTION WITH THIS GUARANTY OR ANY TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS. GUARANTOR ACK14OWLEMES THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY. LIMITED RECOURSE AS TO NON-APPLICANT SPOUSE. Notwithstanding anything contained herein to the contrary, it is agreed that, unless an exception to the requirements of Regulation 8 of the Board at Governors of the Federal Reserve System applies in connection with the extension of the indebtedness and the execution of this Guaranty, the spouse who is deemed not to be the 'applicant for credit' for purposes of such regulation (the 'Won-Appneent Spouse') shell be pemoNly liable under this Guaranty comfy with respect to moats held jointly as of the date hereof or hereafter acquired, and the Han of any judgment, order at other relief against the Non-Applicant Spouse shoe be limited thereon. Nothing heroin. however, shag limit the Lender's rights against any person, firm or entity other than the Non-Applicant Spouse. AUTHORIZATION TO OBTAIN CREDIT REPORTS. If the Guarantor is/are an individuaflsl. by signing below. the undersigned individuaRsl, provides written authorization to Lender or its designee tend any assigns or potential assignee hereof) to obtain hislher/thei personal credit profile(s) from one or more national tract bureaus. Such authorization shag extend to obtaining a credit prefge(s) in considering any extension of credit to the Borrower or the Guarantor and subowpMtly far the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account. A photocopy or faca(mile copy of this outhod atop shall be valid as the original. By signature below, Ilwe affirm mylour Identity as the respective indlWdualls identified In tNsiGueranty. DEFINITIONS. The following capitalised words and terms shall have the following meanings when used In this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shag moan amounts in lawful money of the United Stator of America. Words and forma used in the singular shall include the plural, and the plural shall include the singular, as the context may require, Words and terms not otherwise deNned In this Guaranty shag hewn the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word 'Borrower" means CHILITECH INTERNET SOLUTIONS, INC. and Includes all co-signers and co-makers signing the Note and all their successors and assigns. Guarantor. The word "Guarantor" means everyone signing this Guaranty, including without limitation ANDREW SAUER& end In each case, any signer's successors and assigns, Guaranty. The word 'Guaranty' mearme this guaranty from Guarantor to Lander. &5rrower's Indebtedness to Lender as more particularly described in this Guaranty. Indebtedness. The word 'Indabradness' means the indebtedness evidenced by the dote, or Related Documents, including all principal and interest togalher with ail other Indebtedness and costa end expemam for which Borrawar Is rgppneible under this Guaranty or under any of the Related Oocuments. In addition, the word 'Indebtedness' includes all other obMgadora, debts and liabilities. plus interest thereon, of Borrower, or any ens or more of them, to Lender, so wen as all opdms by Lander against Borrower, or any one or more of them, whether existing now or later; whether they are voluntary or involuntary, due or not due, direct or indirect, sbsokKS or contingent, Ilauidated or unllquldeM, whether (iorrower may be liable Individually or Jointly with others; whether Borrower may be obligated so a guarantor, surety, accommodation party or otherwise; whether reoovery upon such Indebtedness maybe at hereafter may become barred by any statute of limitations,, and whether such Indebtedness may be or hereafter may become otherwise unonforesabb. Lender. The word %ander' moans PNC Bank, National Association, its successors and Assigns. Note. The word 'Note' means the promissory note dated Auguet 4. 2006, in the wiyinrl ptk%elsel amount of 410,000.00 from Borrower to Lender. together with all renewals of, extensions of, modifications of, refinancings of, corsiolldadons of, and substitutions for the promissory note or agreement. (75/18/2010 10:00 FAX 317 267 3735 SMALL BUS MANAGED ASSETS Z007/023 (3paAe 4 of 4) COMMERCIAL GUARANTY ' (CoM3nued) Page 4 Related Deeumanb. The woe& 'Related OOCUmenes' mean 61 promissory notes, credit Agreements, loan agreements, environmental Agreements, guaranties, sacurity agreements, rrlpr o". daeda of trust soci ty deeds, coAatBrel mortgagee, and 1111 Other inst uments, agreements and dice ments, whether now or hemofter sxisting, executed in eonnaetion with the Indebtedness.. CONFESSION OF JUDOVAIMIT, THE GUARANTOR HEREBY EMPOWERS ANY ATTORNEY OF ANY COURT OF RECORD. AFTER THE OCCURRENCE OF ANY EVENT OF DEFAULT HEREUNDER, TO APPEAR FOR THE GUARANTOR AND, WITH OR WITHOUT COMPLAINT FILED. CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST THE GUARANTOR 10 FAVOR OF LENDER OR ANY HOLDER HOMW FOR THE 911111RE PRINCIPAL BALANCE OF THIS 4UARANTY, ALL ACCRUED INTEREST AND ALL OTHER AMOUNTS DUI; HEREUNDER, TOGETTHFR WITH COSTS OF SUIT AND AN ATTORNEY'S COMMISSION OF THE GREATER OF 10% OF SUCH PRINCIPAL AND INTEREST OR 01.000 ADDED AS A REASONABLE ATTORNEY'S FEE AND FOR DOING $0. THIS NOTE t31111 A COPY VERIFIED BY AFFIDAVIT SHALL 6E A SUFFICIENT WARRANT. THE GUARANTOR HEREBY FOREVER WANES AND RELEASES ALL ERRORS IN SAID PROCEEDINGS AND ALL RIGHTS OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAISEMENT. STAY OR PIT APTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED. INTEREST ON ANY SUCH JUDGmWr SMALL ACCRUE AT THE DEFAULT RATIL NO SINGLE "MCISR; OF THE FOREGOING POWER TO CONFESS JUDGMENT. OR A SI UF OF JUDGMENTS. SHALL BE OEEMED TO CMAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SMALL BE HELD BYP ANY COURT TO BE INVALID, VOIDABLE, OR VOID. BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FRONN TIME TO TIME AS OFTEN AS LENDER SHALL ELECT UNTIL SUCH TIME AS LENDER SHALL HAVE RECEIVED PAYMENT IN RJI.L. OF THE DEBir, INTEREST AND COSTS, NOTWnIWANDING THE ATTORNEY'S COMMISSION PROVIDED FOR IN THE PRECEDING PARAGRAPH (WHICH INS INCLUDED IN THE WARRANT FOR PURPOSES OF ESTABLISHING A SUM CERTAIN). THE AMOUNT OF ATTORNEYS' FEES THAT L94M MAY R2COVER FROM THE GUARANTOR SHALL NOT EXCINT) THE ACTUAL ATTORNEYS' FREE INCURRED BY LENDER. GUARANTOR ACK14OWLGDM HAVING HEAD ALL THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND OUARANTOA AGREES TO ITS TEAMS. THIS COMMERCIAL GUARANTY IS DATED AUGUST 4, 2006. THIS GUARANTY IS GIVEN UNI66111 SEAL AND IT IS INTENDED THAT THIS GUARANTY dS AND SHALL CONSTMUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: x Jjm&.rA?Ahj0f,000, I IS") ANDREW SAUERS R GPi? ?.??p V,y4W...NMM1 Ga. wlw,hA?11MIM?Y.r VF IaM. M Yw,u1-W, .M T.1pMR1MIC ¦I40MM M11 06?21/2010 08:58 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 16002 '(Page 1 of 1) 78 v DISCLOSURE FOR CONFESSION OF JUDGMENT C G- _....., •..• .:`:?:' y"a' - A ? "" ?`?i?ll?.;-., ? t i ' -? ":'... ?` ?S:O Ii ''t " iu . .S noe1??-?" I3.Q00 p I" References in the shaded area are for Landsr's use only and do not Imit tha applicabillty of this document to any particular ban or Itern. A- 1t.- .4.n.........?.1..1.... - - • .. > - 6___ __!._ ;l A.- - .mss I---- Borrower: CHILITECH INTERNET SOLUTIONS, INC. ITIN: Lender: PNC Seek. Nadw4d AsseoWon 23-30460681 Bushlass Banking 210 MARKET STREET 4242 Cadida Ake WILLIAMSPORT, PA 17701 Camp HM, PA 17001 DOCIBrant: ANDREW SAVERS ISSN: 165416.77551 46 WYNDMERE DRIVE WILLIAMSPORT, PA 17701 DISCLOSURE FOR CONFESSION OF JUDGMENT 1 AM EXECUTING, THIS ti" DAY OF 20 A GUARANTY OF A PROMISSORY NOTE FOR 410,000.00 OBLKYATING ME 70 REPAY THAT AMOUNT A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT !PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALI101TY OF ANY JUDGMENT- OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER TH6 GUARANTY. I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THEE RIGHTS. INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONISENT TO LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN!THE CONFESSION OF JUDGMENT PROVISION. B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING. THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOULD PERMrr LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING. LEVYING ON, TAKING P+OSSESSIO114 OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY. BEING TULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMMIIT. I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS. AND 1 EXPRESSLY AGREE AND CONS wr TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW. 'WITHOUT GIVING ME ANY ADVANCE NOTICE. C, AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, 1 REPRESENT THAT: INITIALS 1. 1 WAS REPRESENTI O BY MY OWN INDEPENDENT LEGAL COUNSEL IN IMNNECTION WITH THE GUARANTY. 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY TO MY ATTENTION, D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I NOTIALEO AND SIGNED IT: AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SISAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE "PECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT' X Al.r, - (Saaq A1119NEW SAUI;?? =&- Wel„rt?w,a«.r,s.o4aos cr.lri.r w,...r ti.rw.u ww, ?1q. 7001, a11yw ?.uw6 -n17•,nnniomiC tll•MOlWI M?1? ?1. .. -- • -? - c r A '?'? 03/10/2010 19:23 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 1tI007 (P4" 1 of 3) PROMi$86RY NOTE In the shaded erne are for Leder's m onl and do, not limit this appW01ky of this doaxrtant to tiny AM ium ab0w tMruakhltg_ '"'' has boon omitted duo to text tenth lkNtstiona. or Item. Borrower: ; ciiilamcH iN sawn soLu-now. wc. mm: launder: PNO Back. Nations! Association Business Banking 9110 MAMW STWXr 4242 Carlisle Pike WILLIAR111PORT, PA 17701 Camp NAB, PA 17007 Principal! 10.mouns? $10,000.00 WOW Rata: 10.500% Date Of Note: August 4, 2006 PROMISE TO PAY. 04LITECH INTERNET SOLUTIONS. WC. ("Swipwaf") prornlap tfs pray is PNC Bank, NesffmtaN AsapcIa{Jpn J%essib , or order. In w MW mo.ney, of the united Stator of Amadea, Via principal' atttount of Tan Thousand a 001700 balers 1010,000.00) or so mucA sa may be autitrndktgr togedhw whh interest an the unpaid oubtwtdtno Principal befaeel; of each advance. interest shall be cafsu M" from ft data of wwoh advance viii repayRMnt of aaleb.edvance. PAYMENT. ? Nwarwar will pay this loan in eacordence wtdn the following peymant sc hadWe: Borrower will pay register, monthly payraeata of accrued Interest beainnbng September 4. 2008, and all subeegwn Interest paymonb ere Out oil the awns day of each nlai h after that. 8ormwer wW pay fhb loan In one Payment of at outstanding n0d plus aN accrued unpoldlinterest an to Expkatlon Dab. BonwAW may borrow, ropey and robarow hereunder oW the ExplrAcis Dale, subject to the tam and conl8tlem of th,ie tfote. The `Emiptrapon Date" shell mean August 4, 2008, or such later date as may be designated by-written hotlas from Lender to porrewer. Borrower anknowlerlgae and Wow Chet In no event wiNlLander be under any obligation to extend or renew the loan eta this Note beyond the buRlal Expiration pate, fn no event shall the am ageb unpaid Piktelpwi amm"t of advances under this Note wxawee4 the face amount of" Now unless othe'rwiss agreed or raWood by applicable law, payments will be applied first to, any accrued unpold interest; than to princpat: then to any,wpeid 0"n costs; Ono than to airy late Orsomes. The Annual Interest rare forrthis Note Is computed an a 3155/360 basis, that !s, by opplykig the ratio of the annual Interest rate over a year of 360 drys. multlpped by the outstanding principal balance, multlpEed by the actual number of 8syo the principal belsnce' In outstanding. Borrower win pay LaMar at Lender's address shown above w at suer other piece as !.odder moylda.W-tv in waling. VARIABLE PTeMT RATE. The interest rate aid this Note is subject to change from t„me to time based on changes In an Independent Index which is the tIW=t Hme Rate as published in the "Money Rates' section of The, Wall Strout Journal Ithe 'Index'). The Index b not necessaaiy a lowost rate charged by Lender on its bans. M the Was becomes unwvaeebk duahg the term of this loan, Lender may designate a subad irdox after notifying Borrower. Lender will all Borrower the current Index seta upon Barrower's rat. The interest rata change wilt not r mare often them each day. Borrower undentends that Lander may make bons based on other rotes as well. The Index currently is 8.810% arau:ra. The interact rate to be applied to the unpaid principal baiance:duting this Now will be at a rata of 2.250 percentage points over" hsdax, resulting in an Initial tots of 10.500% per annum. NOTICE Under no eueuneasoncws will the Interest rate on this Note be more thin the maimum rote allowed by applicable low, PREPAYME . Borrower may pay without penalty an or a portion of ohs amount owed eadlor than It h due. Eery payments will not, unless agreed to by Lander in wddnL reileve Borrower of Borrowers obligation to cont?hue to make psymeto of accrued unpaid Interest. Rather, early payments wilt reduca the paneipal balance duo. Borrower agrees not to sand Lander payments marked "paid in full', "without recoudse', or similar language. if Borrower sends such a poymerrL Lander may accept it without losing any of Lender's rights under this Note, and Borrower win remain obligated to pay any. huttar amount owed to Lander. AD written commuAIWJovio coricerfing disputed amounts, Including any oheok or other paf,,? inowumant that Indicates that the payment constitutes "paynhant in full' of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be eased or delivered to, PNC Bork, National Association, Atfn: Doe Prep/tOpera?olhs pepertmant-l3BCAC, 8800 Tirane Boulevard 6th Roar Phtlstlolphia, PN 19163. , LATE CHARGE. If a payment Is 15 days or morn: late, Borrower wig be chwgad ILGW% of era sagulorly hdWK dod paymem or $100.00, whicitt t, I leas. DEFAULT. Upon default, including fauure to pay upon final m etur'te, the Interest rata on this Note shall be Increased by INTEREB't=1p adding a errcentago point margin ('Default Rate Margln"), The Dafouft Rate Margin shag also apply to each sucesed Interest rate change the would have applied had there been no default. It JudgMent is entered in connection with this Note, interest will continue to statue aftar the the would of judgment at the rate In effect at the time judgment is entered. Hawevaa?, in Ao event eat the Interest rots oxeeed the maximum koreet Teti pmllatioue under applicable low. oEFAULT. ?Eson of the following shop constitute an event of defoudt i1&sM of Default")wndar this Note: Psymhen! DwfauL Borrower taus to make any payment when duo. Other Defaults. Bo?tower or Grardtvr falls to Comply whh or to perform any other lwm; obligation, covenant or condition contained in this "Note or in any of the related documents or to oompy with of to perform any term; abugadon, covenant or condition contained In any other agrs"em between Lander and Borrower. I3efault In Fever of Third Parties. Borrower or any Grantor defaults under any ban, extension of credit, security aoreement, pwchaze or galas ogrweMW% or aft otwr agreenharhtr IA favor of any other creditor or parson that may ntateaaNy affect any of Borrower's property or Borrower's ability. to repay this Note or perform Borrower's obligetlone udder this Nee or any of the related documents. ftlee StdtM,,Wsts. AM waasaW, repr"tistaboel as, statement made or furnished to Lender by Sorrows or on 800~0 0~ under this Note .0 the related documents is false or mWe"rig In army material respect, shihersnow or at the time made or furnished or becomes false oe misleading It any Una tharaeher. bhsohrenay. The dissolution or termhhedon at Sorrower'4 existence as it going business, the Inoolvencyot Borrower, the appointment of a receiver for any port of Borrowor's property, onv assignmant for the benefit of creditors, any type of creditor workout, or the Comm" on% of any frocsocift under any banttufxev or Insolvency laws by or orieinot Borrower. Crodnor or Fbrfaftura Proeesr Inge. Commencement of foreclosure or fortsiwN a racoodings, whedwr by Judicial proceeding, solMselp, repossoaaion or any other method, by any orwdltor of Barowar or by say gcvafn?nhentel aSenoy against any coNetKal 6ectrkng the ban. Thtsirjeludss A garnlshmeM of arhY of Borrower's accounts, Inaludlig deposk seearmis, Krlth i,ahder. Howsvar, tfils Event of DefaWt snail not apply If there is w good faith dtsfwta by Borrower as to ohs ydtd;M or raaaonabbnwss et the clslrm whldt b the brava of the creditor or forfmore proceeding a:d if borrower ghres Lander wrkten notice of'the ersdhor or fcrfelture Drooeadl+g a? depovits with Lender mont.a or 09/10/2010 19:24 FAX 517 267 9795 SMALL BUS MANAGED ASSETS 2008 (Page 2 Of 3) . PROMISSORY NOTE (Continued) I"s 2 ft stunt{ bond for the aredhor or forfeiture prot:aedfM in an amount d$Wminsd tv Lsndsr, M its soy disentick at being an adequate reser"Jor bond fer the me". Events Affecting Guarantor. Any of the prauedkug events occurs with ntepost i;? any Oustaltor of any of the Indabtedness or env Guar cites or becomes lrrcompatarkt, all revokes or dlsputss the validity of ; or flabili under, any quaranty of the Indebtedness aviden by this Note. In Ownsmhlp• Any change In ownership of twenty-five par am (25%) or mom of the common stock of Borrower, Adverst pedar" rst Change. A r+'caWW adverse change occurs in Borrower's financial conoftion, or Lender believes the prospect at payment or of this Note is impaired. W"Urw. Lender In good faith believes itself insecure. LENDER'S Aif# n. Upon default Lender may, Otte giving such notiea its required ;tav applicable lour, declare the with wvaid principal balance on tJhis Note and tp accrued t opaid Internal Immedlately due, wttrpgt notion, and rthat Borrower will pay that amount. ATrtiam llr3' mi ocpiatsms. Lender may hits or Rey someone eiss to help collect uhis Note If Borrower doss not pay. Borrower will Ray Lender that amount. This includes, subject to any limits under appOuble taw. Lender's a ftmays' less and Landw's legal expense, whether or not there Is lawsuit, Including attorneys' fade, aupenset for bankruptcy procesdings (including efforts to modify or vacate any automatic stay or InjwXV9r4, appeals and any antlcfpatad pcsVjIudg~t collection services. If not priitihed by awlhable law, Borrower alec will pay any coot costs. In addition to and other sumo provided by low, WAMM Oyl,fihRY TRIAL. THE UORRDWSR tRMOCABLY WAIVES ANY AND ALL RIGHTS THE 80BR0*101 MAY HAVE TO A TRIAL BY JURY IN ANY, ACTION. PROCEEDIN* OR CLAIM OF ANY NATURE RELATING TO THIS MOTS, ANY DOCUMMM EXECUTED IN CONFaCTION W1Tm THIS OR ANY TRANSACTION CONTEMPLATED IN ANY OF sIJRH POCUMOM. THE 1110MOWER ACKNOWLED094111 THAT THE FOR14006WAIVER III KNOW110 AND VOLUNTARY, GOVER1111" LAW. This Nots tell) be governed by fadaral low apprz%Wa to Larder and. w the extant not preempted by fedwef low, the laws of the Caaunonweelfh of Permylverda without moverd to its oonf a of law provlatonra This Note has been accepted bir Lender to the Contmcnweihfr of Pon svivenie. CHOICE. OF VENUE. If them is a lawauit Borrower agrees upon Lender's request to wA ntit to the jurisdiction of this eowts of Cumberland County, Commonwodth of Pavhsyivanls. RIGHT OF WrOM. M addition to all Gans upon and rights of setoff against Borrower's eotey, securities or other property given to Lender by la posassaarv w. Lender.theil hero, with respect zo Borrower's obilpationa to Lander under this Nets and to the extant psimitted by law, a contractust dellvere, pledges and transfer* to Lender aGI Ba Interest title and k rest in end of setaff to,, all of Borrrrowand er s dopmInoneya, securities andconveys. oper property now or haroshar In the possession of or out depoet with, or in transit to, tender or any other direct of indirect subsidlmy of The PNC Firwttolel Sarvices Group, Inc., whethein held in r general or specie) account or deposit, whether held jointly with someone visa, or wiwther bald for stlekeeping or otherwise, exciuti tg, however, all IRA, Kaolik and oust accounts. Edney such seeur tyuintamst and right of setoff may be exanked without demand upon or notice to Borrower. Every such right of setoff nderG be deemed to have been axwoissd immediately upon the otaurnnce of an Event of Default hwaunder without any notion of Lender, although Lender may anttr such setoff on its books and records at a latar time. COLT ATpLAL This loan is unsecured. LINE -OF CREDIT. This Note evidences a revolvirtg Ire. of ora [L Advanees.undor thW Ncts may be requested aragy by Borrower or by an authorized person. AN oral requests shell be oonfirmad In writing On the day of the mquesb AN com 0ftedons, instructions, or dksations by talephons orlodhewiae to Lander are to be directed to Lander; office shown above, lbtmww egreet to be liable for all suns either; W edvanaad in eoaordahoa old, the Instructions of an sudho ad person or. (IN credited towN of borrower's accounts with Lender. The unpeW nom oel balance owing on this Note at any Ome may be rAdenced by endorsements on thin Note or by LenWo bhtemal records, bheiudnng date Outer Print-outs. Leader-will haw no obligation to advance tomes under We Nola Ift CIA) Borrower or any guarantor to In default under dw terms of ilia Note or any agreement that Borrower or eny guarantor has with Lender. hdiuddng env agreement made in eomreotion with the st r;ing of this Now, (IN Borrower or any guarantor ceases doing business at It insolwenti (C) any "tenor aeeka, delms or odherwiss attempts to limit, modify or revoke such gunruntor's guarantae of We Nofe or any other loan with Lander: (D) Borrower has applied funds provided pursuant to thin Nuns for purposes other then those authorad by Lender, or (E1,Lander in good takh bellWa ftW insecure. FINANCIAL uhFORMATION PROVISION. Borrower agrees to deliver any financier and Mhor buskross Information concerning Borrower that Lender may request from time to time, such as ahruat and interim Awalst atatettorma (and of which shall be prepared in moomdanae with 9a+taralhr socWW accounting principles) and Federal income tax returns. DgOffiff X. Borrower will estsbllsh attd maintain, with Lander, Borrower's primary doomitay occounnial. If Borrower fails 18 establish andior maintain its OrImery depositary eseount(s? with Lender, Lander may, at Its cpdon, upon thirty 130 days notice to Borrower. Increase the interest rate payable W Borrower under this Note by up to 1.00 percentage points (1,00%). Lenosr's right to htrreass the interest rate pursuant 10 this paragraph shelf be in sddltion'to arty other n" or remedies Lander may have under this Note, ell of which are hereby reserved, and shay not t:onedtuts a %Wvar, release or Imitation upon Larder's exercise of any such rights or remedies. by ALf1'OAIAI'lL? DEBT f riF vaYlltreaft S. The fhorrovver hereby authorizes ma Lauber to charge the Borrowers dequath aecourn at the Lender for any . prY++ent wh4rt due hsreuetdsr. If -the Borrower revokes this atrthorisatlon far nekton whpgpever or felis to mairuakt a dopork aoegntrnt whh the LereQsr Which nay be ahsrged, the Cancan mqy, et ib eerier, upon thirty (3 daysce t0 ;rte Horrovuer, irraeass ehs interest rata Rayeldis tfa eorrovlver under this Note by tv?entyAva t2B) beala o0hhta (0.2691?. IM MNA?TWD i OF 111019 OF CREDIT. Upon sixty (60) days prior written notice to Borrower, Lander may terminate the Line of Cnmk with or without emom and demand Jul payment of the andm unpold pri w4W bektnae of 04 Note, and in awned std unpeld Interest on the balm. I . and at otlwiamowM due k accordance with the terms of this Note. Unless Lendses notice provider otherwise. Lander will have no hrroer obligation to W amce funds under this Note. . CONVERSION TO TERM LOAN. Linder retains the right to convert.all or any part of MA outstanding krdehtednep undgt this plots Into an amorazeng term low, with or without cause„ upon providing ttbrtq (60) diva prior written notice to Borrower iths 'Conversion Notice'). If Lander etes is this eight, Leader wN( dernpute a now monthly payment with respect to "fie part of thus Indebtsdnim so converted 4" Term Lean Portion! 1. and fbrrawer will be advised of such new monthly payment with respect to the Term Loan Pardon M the Conversion Notice. Monthly psylAents on the Tam Loan Pardon fohowkq the Convefalm Nodes shag 13* based upon an amortization p9Rod epsollied In tfte Conversion toffee ithe 'Amortization Period'). Subsequent payments on the Tarn Loan Nonlon shall be determined monthly amp chap be in the ammmunts determined by Lander t4 be necessary to ially amortise the than outstanding pdnalpel balance so converted oar the then remakting Amortiza,dern j PeAod at the effective interest rate an thin Note as of the date the amount of such payment' is cateulew by Lander. AN outstanding principal and accrued interest will be due on the last day of the Amortization Period, All Of the provisions of this Note and env _ 03/10/2010 19:25 FAX 317 267 3735 SMALL BUS MANAGED ASSETS 2009 hags 3 cf 3) PROM8SORY NOTE (Conthlued) Page 3 Related Documerns ahall apply to the 'i'erm Loan Portion Ox"Pt to tM extent Inconsistent with this Pna9raAh• SUCCLBSOft INTMRBSTS. The terms of thin Note shall be broft upon Borrower, and upon Borrower's hews, personal rNrwea8ftt8dyes' su0esaeprs and 41110 it, end ahsW In" to the benefit of Lender Mw he aucca»ors era! aasims, GENERAL PROVISIONS. Len"r may delay or ? enlMft My of ha dots or needles ut+dar this Nob wltlrolrt 1081139 thbr++. Borrower and any other Dorton whe Agns, 9WMf bar or endorsor this Note, to the exbnt a&wmd ty law, waive pre0arirnfsnt, damalld for payment, and native of dWvrw. UPon any charlgs in the tem+s of thle Note, &W Unless otherwlaa expressly feted In wrhi pnB,? m party who signs tads Note, whether as maker, gwrantar, scoommodaFlan makeMACCRUED cr wWofm. algid be roloaied from WW*Y. All auoh NPRIMPAl. rapeatedly cent for f+nY Ialt9thin loan or rolseer anyparty or Owwant+x or o0llaterei; or "rat that Ledsmay ronew verity Interest in Rho oogatke any otMr aetlon dearrhad lenpa ir, fag to maAm upon or perfect nsce Na ela0 agree that Landpryr thla loan without tfte consent o bye te r without the consent of or notice to anyone. » meta, The ablpatlons Note aro anyone other than the party with whom the ts, it wIN not affect the rRtof a b and several. It any p«tion of this Note IS for any meson de%Wmk*d to be nY prorisionp Of tllia Note. N OF JUDGEMENT. TffM{ HStEBY EMPDWISIS ANY ATTORNEY OF ANY COUiT - OF RECORD. AFTER THE AND. WITH OR WITHOUT CONKAUST UDGMSNT. OR A SERIr;S ENTS, AGAINST THIS BO IN THE RROWER IN FAVOR LENDER OR ANY HOLDER HffA0F FOR THE COSTS OF D"I P RINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED IifTFREST AND ALL OTHER AMOUNTS DU! HNIEUNOM TOGETHER tIMH COMMISSION OF THE A REASONABLE pnONNWSS FEE,'AND MR' DOW $0, THIS NOTE OR 10% 0114W?lf PRINICNIAL AND INTEREST OR COPY VERIFIED BY AFFIDA LL 20 A SUFFICIENT WARRANT. THE BORROWER HERESY FOREVER WANES AND RELEASES ALL ERRORB 0 SAFO PROCE MOSS AND ALL RFOHU OF APPEAL AND ALL RELIEF FROM ANY AND ALL APPRAFBEMMT. STAY OR RDtaRPTION LAYIG OF ANY gTATE NOW IN FORCE OR HeRurrER ENACTED, INTEREST ON ANY SUCH JUDGMENT SHALL ACCRUE AT TH8 09FAIJLT RAWL NO GURU EIC 051 OF THE FORE GOING POWER TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS. SHALL BE ORMED TO EXMAUS'T THE POWER. WHETHER OR NOT ANY SUCH EXERCISE SHALL B! MO SYPANY BURT TO BE INVALID, VOIDABLE, OR VOID. OUT THE POWER SHALL CONTAM UNDMUNWHaD AND IT MAY BE EXERCISED FROM1TIME TO TIME AS OPT>EII AS LENDER SHALL ELECT UNTIL SUCH TIME AS LENDER SHALL HAVE RECEIVED PAYMENT IN WLL 00 THE DEIST'. INTEREST AND COSTS. NOTW I"TANDINQ THE ATTORNEY'S COIll==ION PROVIDED FOR IN THE PRMXDWG PARAGRAPH MW M W MLUDED BN THE WARRANT FOR PLMIIOSES OF RISTAK SMNR A SUM CERTAIN!. THE AMOUNT OF ATTORNEYS' FEES THAT LIMEW I MAY RIECOVER FROM THE SORROW M SHALL NOT RXCEED THE ACTUAL ATTORNEYS' FEW IYCVRRgD BY LENDER. PRIOR TO SIGNING THIS NOTE. BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. INCLUOING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER ACRE FS TO THE TERMS OF THE NOTE. THN NOTE M GIVEN UNDER SEAL AND IT M INTENDED THAT THIS NOTE IS AND WHALL CONSTITUTE AND HAVE THE VFW OF A SttALL'D WSTRUMENT ACCORDING TO LAW. BORROw"t CHUrECH INTERNET SOLUMNS. INC. By A EStDENT C fUTECH loom NET SOLRITrO&SLAUERS.- Ya W..19.OP Gw.11?/IOw?It.Y1M, Mw Nei W L MMy?u lYlw? .IY MrNahg00JK 1Y.7 M.11 Q3/26/2010 08:46 FAX 317 267 3735 SMALL BUS MANAGED ASSETS I?J003 PNC'ANK March 'g';6, 2010 BY OVE 9W MAIL - PERSONAL AND CONIFIDENT'L1u,, Andrew Sauers, President Chilitech Internet Solutions, Inc. 210 Market Street Williamsport, PA 17701 Re: Demand for Payment Dear Mr. Sauers: As you know, you are obligated to PNC Bank, ?National Association, for a certain business purpose loan in the original principal amount of $10,000.00 (the "Loan"), as evidenced by a certain Promissory Note from you to us dated August 4; 2006 (the "Note")' The Loan has a current outstanding principal balance of $9,000.00, and accrued and unpaid interest through March 19, 2010, of $101.75, and past due late charges of $4.26.. Interest continues to accrue on the Loan at the rate provided in the Note for each day the Loan remains unpaid: As you also know, you are in default of your obligations under the Note for failure to make payments of the Loan as and when due under the Now. This letter notifies you that PNC BANK MAKES DEMAND FOR MI IEEDIATE PAYWNT OF THE LOAN. If the Loan is not repaid in full, in good funds, within two (2) business days Bonn the date - of this letter, we will consider taking actions to collect the Loan from you and/or any sureties, including turning the matter over to our-collection counsel. Please call we at 317.267.7361 to arrange for repaym,xnt of the Loan. yours, Rhonda Davis, Officer CRC - Credit Policy cc: Andrew Sauers, Guarantor - BY OVERNIGHT MAIL 48 Wyndmere Drive Williamsport, PA 17701 Geoffrey S. Shur Esquire 710010 (Fw. anal COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. p - Ndi3 Div. L Term Plaintiff CONFESSION OF JUDGMENT V. ANDREW SAUERS, ; Defendant PREVIOUSLY ASSIGNED TO: N/A PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter my appearance on behalf of Plaintiff, PNC Bank, National Association. Papers may be served at the address set forth below. Geoffrey S. Shuff, Esquire -t, c -' McNees Wallace & Nurick LLC `' ?? :: _ rs t 100 Pine Street, PO Box 1166 8 Harrisburg, PA 17108-1166 (717) 237-5439 c? -- y Respectfully submitted, McNees Wallace & Nurick LLC Date: June2Z,2010 By: G ey S Shuff, Esquire preme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. 10 ya13 l.:w tTP?M Plaintiff CONFESSION OF JUDGMENT V. ANDREW SAUERS, ; Defendant PREVIOUSLY ASSIGNED TO: N/A 2 K AFFIDAVIT OF NON-MILITARY SERVICE m ' ° irr - z rn m ' f' TO THE PROTHONOTARY: a 1V W b _ I do certify, to the best of my knowledge, that the Defendant in the above-dj*bne n: Andrew Sauers, is not presently on active or nonactive military status. ? Respectfully submitted, McNees Wallace & Nurick LLC Date: June ZZ-2010 By; Sh , Esquire e Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, : DOCKET NO. 10 - X0113 l?ivt Term Plaintiff CONFESSION OF JUDGMENT V. ANDREW SAUERS, : Defendant PREVIOUSLY ASSIGNED TO: N/A CERTIFICATE OF ADDRESSES I hereby certify that the precise address of the Plaintiff, PNC Bank, National Association, is 4242 Carlisle Pike, Camp Hill, PA 17011; and that the last known address of the DefAgdant, 0 C= Andrew Sauers, is 48 Wyndmere Drive, Williamsport, PA 17701. C -? C= c- L? Respectfully submitted, C6 rn McNees Wallace & Nurick LLC w .c- Date: June 2010 By; y S huff, Esquire upreme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff z. I'$. r COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, : DOCKET NO. J O - yap 3 0,;VwrerM Plaintiff : CONFESSION OF JUDGMENT V. ANDREW SAUERS, Defendant PREVIOUSLY ASSIGNED TO: NIP tit c_ =1 NOTICE UNDER RULE 2958 1 z CL. N O . OF JUDGMENT AND EXECUTION THEREON - <' ca T" NOTICE OF DEFENDANT'S RIGHTS C: W u TO: Andrew Sauers A judgment in the amount of $10,159.94, plus interest, other expenses, fees and costs has been entered against you and in favor of the plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. 4.14 r Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 Respectfully submitted, McNees Wallace & Nurick LLC Date: June 22010 By: Ge S. S uff, Esquire eme Court ID #24848 100 Pine Street, PO Box 1166 Harrisburg, PA 17108-1166 (717) 237-5439 Attorneys for Plaintiff `, ,n. COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION PNC BANK, NATIONAL ASSOCIATION, DOCKET NO. lO -'A13 t?iVtlTP_tN? Plaintiff : CONFESSION OF JUDGMENT V. ANDREW SAUERS, Defendant To: Andrew Sauers, Defendant PREVIOUSLY ASSIGNED TO: N/A You are hereby notified that on ? jjW, aS , 2010, judgment by confession was entered against you in the sum of $10,159.94, in the above-captioned case. DATE: 3:)? Prothonotary YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 I hereby certify that the following is the address of the Defendant stated in the certificate of residence: Andrew Sauers 48 Wyndmere Drive Williamsport, PA 17701 G ey Shuff Attorney for Plaintiff 10 A, Andrew Sauers, Demandado: Por este medio usted sea avisado que en el dia _ de de 2010, un juicio por admision fue registrado contra usted por la cantidad de $10,159.94, referente al caso mencionado arriba. FECHA: Protonotario ' LLEVE ESTA DEMANDA A UN ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO O SI NO TIENE EL DINERO PARA PAGAR TAL SERVICIO, VAYA PERSONALMENTE O LLAME POR TELEFONO A LA OFICINA CUYO TELEFONO Y DIRECCION SE ENCUENTRAN ESCRITOS ABAJO PARA AVERIGUAR DONDE USTED PODRA CONSEGUIR ASISTENCIA LEGAL. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 Por este medio certifico que la siguientes son las direcciones de los demandado, dicho en el certificado de residencia: Andrew Sauers 48 Wyndmere Drive Williamsport, PA 17701 G ey , Abogado del Demandante SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor t FILED-O F1.' THE PROTH .P-1 .1, ? 2011 SEP 16 APB 10: 25 CUMBERLAMD PENNSYk_VAN11h PNC Bank, NA vs. Andrew Sauers Case Number 2010-4213 SHERIFF'S RETURN OF SERVICE 08/08/2011 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Andrew Sauers, but was unable to locate him in his bailiwick. He therefore deputized the Sheriff of Lycoming County, Pennsylvania to serve the within Notice Under Rule 2958.1 of Judgment and Execution Thereon according to law. 09/09/2011 R. Mark Lusk, Sheriff of Lycoming County, who being duly sworn according to law, states that on September 9, 2011, he was unable to serve a true copy of the within Notice, upon the within named defendant, to wit: Andrew Sauers. After several attempts the Defendant was never at home. SHERIFF COST: $37.00 SO ANSWERS, September 14, 2011 RbNRrY R ANDERSON, SHERIFF c; C?uni 7E -sort-lip::.