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HomeMy WebLinkAbout04-4791 o TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE lEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVil DIVISION HEAL THCORE OF OHIO, llC 47 West Pomfret Street Carlisle, PA 17013, NO. 04~ It/lq I Defendant. ENTRY OF JUDGMENT BY CONFESSION AND ASSESSMENT OF DAMAGES Pursuant to the Complaint in Confession of Judgment filed in the within action and the Warrant of Attorney attached hereto, judgment is hereby entered against the Defendant, jointly and severally. DAMAGES ARE ASSESSED AS FOllOWS: Unpaid principal balance under the Unconditional Guarantee dated April 30, 2003 as of July 6, 2004 late fees from July 6, 2004 $444,454.49 1.160.76 $445,615.25* "Together with interest accruing at the rate in the Unconditional Guarantee from July 6. 2004, attorneys' fees, and costs of this action (to be determined) n022.1 PRa~~J - 2- r' . ., . ~'.:.'! . -.' ~ -.., -< (") ~; ,;, r..."I L.. "-' C:.J L- ~ ~~- c. -, -.-! f~; -i.; ._, -,- ,;.,::- N W ::~ ;.n " j' ~. :: ~.~'" . .. , -.. ';.1. '_ 1"', -. ',r: '. ....:: TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 (J. THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. () Y- c.f7Cj J HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. ENTRY OF APPEARANCE PRAECIPE FOR ASSESSMENT OF DAMAGES AND CONFESSION OF JUDGMENT TO THE PROTHONOTARY: Kindly enter our appearance for and on behalf of the Defendant above named. Pursuant to the authority contained in the Warrant of Attorney separately set forth in the Unconditional Guarantee dated April 30, 2003, a true and correct copy of which is attached as Exhibit A to the Complaint filed in this action, we hereby appear for the Defendant in this matter, HealthCore of Ohio, LLC, and confess jUdgment authorized, in favor of the Plaintiff and against the Defendant, as follows: DAMAGES ARE ASSESSED AS FOLLOWS: Unpaid principal balance under the Unconditional Guarantee dated April 30, 2003 as of July 6, 2004 $444,454.49 Late fees from July 6,2004 1.160.76 $445,615.25' 'Together with interest accruing at the rate in the Unconditional Guarantee from July 6, 2004, attorneys' fees, and costs of this action (to be determined) --...., F. t PA . . No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Dated: 1J-1o'L- Df Attorneys for Plaintiff, The Legacy Bank 72023.1 -2- (') ~~, n. C,> , , c: ~i~ -i. .. ", ---< "T. ,-. '. i '. --"i..' p ,- r..., .. .. .- '- (...; , , .. J ~:"- " - . , n ~ . .. , - ::-.1 " , -<. Co..: j. TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, NO. Ot{ -~ L(lC{ I Defendant. COMPLAINT IN CONFESSION OF JUDGMENT Plaintiff, The Legacy Bank (the "Bank"), by and through its attorneys, Tucker Arensberg, P.C., files this Complaint for judgment by confession pursuant to Pennsylvania Rules of Civil Procedure 2950-2956 and, in support hereof, states as follows: 1. The Bank is a national banking association with an address at 2600 Commerce Drive, Harrisburg, Pennsylvania 17110. 2. Defendant, HealthCore of Ohio, LLC, is a Pennsylvania limited partnership with a last known address of 47 West Pomfret Street, Carlisle, Pennsylvania 17013. 3. The Defendant executed a certain Unconditional Guarantee on April 30, 2003 (the "Guarantee") pursuant to which the Defendant agreed to, and did, become unlimited guarantor and surety for all obligations of HealthCore, LLC, (the "Borrower") to the Bank, including but not limited to, Borrower's obligations to Bank under (i) that certain Loan Agreement between the Borrower and the Bank dated April 30, 2003 and all related documents (the "Agreements"). True and correct copies of the Unconditional Guarantee and Note/Loan Agreements are attached hereto and incorporated herein as Exhibits "A" and "B", respectively. 4. Defendant, through the terms of the Guarantee, authorized the confession of judgment against the Defendant. 5. Pursuant to the terms of the Guarantee, the Defendant was required to, among other things, guarantee and act as surety for Borrower's obligations under the Agreements. 6. As a result (among other things) of Borrower's failure to pay certain amounts as and when due under the Agreements, events of default occurred under the Agreements. 7. Pursuant to the terms of the Agreements, upon the occurrence of an event of default, the Bank was authorized to declare all amounts payable under the Agreements to be immediately due and payable. 8. Pursuant to the terms of the Guarantee, upon the occurrence of an event of default under the Agreements, the Bank was authorized to declare all amounts payable under the Guarantee to be immediately due and payable. -2- 9. On or about September 17, 2004, the Bank sent letters to Borrower. notifying the Borrower of the occurrence of events of default under the Agreements (the "Default Letters") and declaring the unpaid principal amount of the Agreements. interest accrued thereon, and all other amounts owing under the Agreements to be immediately due and payable in full. True and correct copies of the Default Letter are attached hereto and incorporated herein by reference as Exhibit "C". 10. On September 22,2004, the Bank sent a letter to the Defendant, again notifying the Defendant that all obligations under the Agreements were due and payable. A true and correct copy of that letter is attached hereto and incorporated herein as Exhibit "0". 11. Notwithstanding default and demand. the Borrower and the Defendant have not paid the full amounts owed to the Bank under the Agreement. 12. Pursuant to the terms of the Agreements. upon the occurrence of an event of default under the Guarantee, the Bank may appear for and confess judgment against the Defendant for the amounts due and owing under the Guarantee. 13. Under the terms of the Guarantee. the Bank is entitled to recover from the Defendant the costs of any suit, including attorneys' fees. 14. Under the terms of the Guarantee, the Defendant agreed that the Courts of Common Pleas of the Commonwealth of Pennsylvania and any United States District Court in Pennsylvania shall have jurisdiction with respect to matters involving the Guarantee. -3- 15. As of July 6, 2004, the amounts due and owing by the Defendant to the Bank under the Guarantee are as follows: Unpaid principal balance under the Unconditional Guarantee dated April 30, 2003 as of July 6, 2004 $444,454.49 Late fees from July 6,2004 1.160.76 $445,615.25* *Together with interest accruing at the rate in the Unconditional Guarantee from July 6, 2004, attorneys' fees, and costs of this action (to be determined) 16. The Note and the Guarantee had not been assigned by the Bank. 17. The Bank's claims against the Defendant are not based upon a residential mortgage and Act 6 does not apply. 18. No judgment has been entered on the Guarantee in any jurisdiction. 19. The confession of jUdgment provision appearing in each of the Notes or Guarantee is less than twenty (20) years old. 20. Judgment in favor of the Bank and against the Defendant is not being entered against a natural person in a consumer credit transaction. 21. Judgment in favor of the Bank and against the Defendant as demanded is authorized by the confession of jUdgment provisions contained in the Note and/or Guarantee. WHEREFORE, the Bank, as authorized by the Warrant of Attorney contained in the Note and Guarantee, hereby demands that jUdgment by confession be -4- entered in its favor and against the Defendant, in the amount of $445,615.25, plus interest accruing after July 6, 2004, plus costs and attorneys' fees and requests such other and further relief as the Court may deem proper. F. t PAl 111 rth Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Dated: 72024.1 ?-'L....n' . Attorneys for Plaintiff, The Legacy Bank -5- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. VERI FICA TION Don Signor hereby states that he is a Loan Review Officer of The Legacy Bank, and verifies that the statements made in the foregoing Complaint In Confession of Judgment are true and correct to the best of his knowledge, information and belief. The undersigned understands that the statements made therein are made subject to penalties of 18 Pa. Cons. Stat. Ann. S4904 relating to unsworn falsification to authorities. Dated: 72025.1 d~~ ~ . Officer CERTIFICATE OF SERVICE AND NOW, thisC) 3"J day of JLrbh,J~ ,2004, I, Dawn T. Heilman, Legal Secretary to F. Stephenson Matthes, Esquire, for the firm of Tucker Arensberg, P.C., hereby certify that I have this day served a true and correct copy of the within document, by mailing same by U.S. Mail, Certified Retum Receipt Requested, postage prepaid, addressed as follows: HealthCore of Ohio, LLC 47 West Pomfret Street Carlisle, PA 17013 Uqlu'-r\.J W'.-hu~ Dawn T. Heilman ' 72101.1 f )(hkt P. U.S. Small Business Administration UNCONDITIONAL GUARANTEE SBA Loan . GP 626 380 40 09 HBG SBA Loan Name HeallhCore, LLC HeallhCOlI 01 Ohio, LLC Guarantor HeallhCore, LLC BalTOwer Lender The Legocy Bank Date April 30, 2003 Note Amount 500,000.00 I. GUARANTEE: GWlr'IDtor unconditionally guanmtees payment to Lender of all amounts owing under the Note. This GWlr'IDtee remains in effect until the Note is paid in fUll. Guarantor must pay all amounts due WIder the Note when Lender mokes wrillell demand upon Guarantor. Lender is not ~ircd to seel< payment from any other source before demanding paymenl from Guarantor. 2. NOTE: The "Note" is the promissory note dated FIVE HUNDRED TI-fOUSAND AND NO/lOO Apr1l 30, 2003 in the principal amount of DoOars, from Bonowcr to Lender. II includes any assumption. renewal, substitution, or rcplocemcnt of the Note, and multiple notes under a line of credit. 3. DEFINITIONS: "CoUatenll" means any propcny taken as security for paymenl of the Note or any guarantee of the Note. "Loan" means the loan evidenced by the Note. "Loan Docwncnts" means the documents relBlCd to the Loan signed by Borrower, GuanmlOl' or any olber guanmtor, or anyone who pledges Collatcntl. "SBA" meons lbe Small Business Adminislrlllion. an Agency of the United StOles of AmcricL saA Form 148 (UWB) Previous _lIS aboolBlB. Page 1/5 Bankers Systems, Inc., Sl Cloud, MN 4. LENDER'S GENERAL POWERS: Lender may lake any of the foUowing actions II any time. without notice. without GuarllJlIlII" s coll5ent, and wi!hout making delD8Dd upon Guarantor: A. Modify the lmDS of !h. Note lII' any other Loan DocumeDl.xceplto increase the amoUDlS due UlIder the Note; B. Refrain from taking any action on the Note. !h. CoIIalera1, or any guarante.; C. ReI.ase any Bonower or any guarantor of the Note; D. Compromise or settle with !h. Bonower or any guarantor of lb. Note; E. Substitute or rel.ase any of the CoU.ten!. whether or DOl LeDder receives anythiDg in retum; F. Foreclos. upon or otherwise obtain, and dispose of. any CoUateraI 81 public or priv.te sale. wi!h or without advcrtisemCllt; G. Bid or buy 81 any sal. of CoU.teraI by Lender or any other liCDholder. II any price LCDder chooses; and H. Excrc:is. any rights it h... including those in the Note and other Loan Documents. Thes. actions will Dol rei.... or reduce the obligations of Guarantor or create: any rights or claims .gainstl.CDd.... S. FEDERAL LAW: Whcu SB'" is the holder. !h. Note and this Guarantee will be CODstrued and CIIforced UDder f.denll.w. iDc.luding SBA regulations. Lender or SBA ",.y use swe or local procedl1l'Cs for filing papers, recording documc.nts. giving notice. foreclosing Ii.... and other purposes. By using sllCb procedllJ'Cs, SBA docs nOl waive any federal immunity from swe or local control. penalty. laX, or li.bility. As to this Guarantee. Guamuor m.y nOl claim or ..sert any local or swe I.w against SBA to deny any obligation. d.feat any claim of SBA. or preelDpl fcderallaw. 6. RIGHTS. NOTICES. AND DEFENSES TIlATGUARANTOR WAIVES: To the .XlCDt permitted by I.w. A. Guarantor waives all rights to: I) Require preSCIIllllcnl, protest, or demand upon Borrower; 2) Redeem any CoUareral before or aftto- Lendc: disposes of it; 3) H.ve any disposition of Collateral advertised; and 4) Require a valuation of CoIIatcnl before or aftto- Lender disposes of iL B. Guarantor waives any notic. of: I) ABy default under the Note; 2) PresClltmCllt, dishonor. protesL or demand; 3) Exccution of the Note; 4) Any action or inaction on !h. Note or ColIlIIen!. sllCb IS disbursements. paymCll1, nonpayment, acceIoralion, inlCDt 10 accelcralc. ..signmeut, collection activity. and inauring enfon:ement Cltpenscs; S) Any chang. in lb. fiDux:iaI condition or business opcntiOllS of Borrowe: or lilY guaranlOr; 6) Any cIumge. in the lenDs of the Note or olhcr Loan Documems. Cltcepl increases in the amounts due UDder the Note; and 7) The time or place of any sal. or other disposition of CoIlatcnl. C. Guarantor waiv.s clef...... b..ed upon any claim that: I) Lender failed to obtain any guarantee; 2) Lender failed to obtain. perfect, or maintain . security interest in lilY pmpetty offered or talc... IS CoUateraI; 3) Lender or othcn improperly valuccl or inspected the CoUatcnl; 4) The CoI1atcnl changed in val.... or w.. n.glccled. IOJ!, destroyed, or underinsured; SElA Form 148 (10198) P_ odlliDns abIolotB. Pogo 215 Banke.. Systema. Inc.. SL Cloud, MN 5) Lender impaired the CollBleraI: 6) Lender did Dol dispo.. of any of the Collateral; 7) Lender did nnt conduct a colllllleICially reasonable sale; 8) Lender did nOl oblaill the fair mark.t value of the Collateral; 9) Lender did not make or perl'ecl a claim upoD the doaIh or disability of BotrOWel' or any guaranlOr of the Note; 10) Tbelimmcial condition of Borrower or any guarantor was OYOlSlaled or has adversoly changed; II) Lender made 0I1'0t'S or omissions in Loan Documents or administration of the LoIl1; 12) Lender did not seek payment from the Borrower, any other guaranlOrs, or any Collateral befOlO ~""'onofu!g payment from Guarantor: 13) Lendor impaired Guarantor's suretyship righu; J 4) Lender modified the Note terms. other than 10 incroase amounts due UDder the NOlO. H Lender modifies the Note 10 inere... the amounts duo under the NOlO without Guarantor's COllSCDt, Guarantor will Dot be liable for the increased amounts and rela~ in.....st and expotl505, but remains liable for all other amounts; 15) Borrower has avoided liability 011 the Note; or 16) Lender has taken an actiOll allowed UDder the NOlO, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COlLATERAL: Guarantor will preserve the Collateral pledged by Guarantor 10 secure this Guarantee. Lender has DO duty 10 preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Undor this Guarantee, Guarantor iDcludes heirs and successon, and Lender includes its successors and assigns. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guanmtor promises 10 pay all expenses Lender incurs 10 enforce this Guarantee, including, but not limited 10, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will contiDUO even if SBA pays Lender. SBA is DOl a co-guarantor with Guarantor. Guarantor has DO right of CODlributiOll from SBA. C. SUBROGA nON RJGHTS. Guarantor has no subrogatiOll rights as 10 the Note or tho Collateral until the Note is paid in fUll. D. JOINT AND SEVERAL UABll.ITY. All individuals and entities signing as Guarantor are jointly and severally liable. E. DOCUMENT SIGNING. Guatmltor must sign all documents llOCesSlU)' Blany time 10 comply with the Loan Documents and 10 enable Lender 10 acquire, perl'ect, or maintain Lender's liens 011 Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender liDancial statements as Lendor require.. G. LENDER'S RJGHTS CUMULA TlVE, NOT WANED. Lender may exerci.. any of its rights soparately or IOgether, as many times as it choo.... Lender may delay or fmgo enforcing any of its rights without losing or impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may Dol WIO an oral stalemeDt 10 conlndict or alter the written terms of the Note or this Gultmltee, or 10 raise a deeenselO this Guatmltee. I. SEVERABILITY. If any part of this Guarantee is fOllDd 10 be unenforceable, all other parts will remain in effecL J. CONSIDERA nON. The consideration for this Guarantee is the Loan or any accommodation by Lender as 10 the Loan. SBA Fann 148 (1lW8) Provious _ns-.e. Pogo 3IS Bankers Sysl8ma, Inc., SL Cloud, MN 10. STATE-SPECIFIC PROVISIONS: WARRANT OF AUTHORITY TO CONFESS JUDGEMENT. Upon d.fault, In addition to all other remedies and rights avallabl.to you, by .igning b.low I irrevocably authorlz.th. prothonotary, cl.rk, or any allomsy to appear in any court of record having juri.diction ov.r this malter and to conf... Judgment ag.inst m. at any tim. without st.y of exBCution. I waive notice, ..rvic. of proces., and proc.... I .gre. and und.rsland that judgm.nt may be conf...ed .gainS! me for any unpaid principal, l\CClUed charge. due on this Note, plus collection costs and r.asonabl. allomey.' fees up to 15 parcent of Ihe judgement. The ex.rci.. of th. pow.r to conf... Judgment will not exhau.t thi. warrant of authority to und.rstand that my property mey be ..Ized without prior notice to sati.fy th. d.bt owed. I knowingly, intentionally, and volunlarily waive any and aU ccnstllullonal rights I have to pr.-d.privalion noUc. and h.aring under fed.ral and .late laws and fully und.rstand the con.equ.nces of thi. waiver. By .igning immediately below, I agree to th. t.rms of the CONFESSION OF JUDGEMENT .ectIon. ~/gO? Date I sf/?~ J Oat. SBA Fann 148 (1G'98) Previous edition. obaotete. Pago 415 Bank.rs System., Inc., Sl. Cloud, MN 11. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges thaI Guarantor has read and understands the significance of all tenDs of the Norc aDd this Guanmtee, including all waivers. 12. GUARANTOR NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligared as Guarantor UDder this Guaranrce. Apn13O, 2003 April 30, 2003 SBA Fonn 148 (10198) Previous editions DbSoaete. Page SIS Bankers Systems, Inc., St Cloud, MN b , . \ i 1- /f.-f\' P 1'/ u.s. Hlull .1Il.- Adminiltnt.lab U.S. Small Business Administration NOTE ,.....J <1)' :"": ~ SBA Loan . GP 626 360 40 09 HBG ~( ~'\ ,~ SBA Loan Name HeallhCore, LLC ~~ , April 30, 2003 Date Loan Amount 500,000.00 Interest Rale WSJ Prime + 2.75% HeallhCore, LLC Borrower Operating Compeny Lender The Legacy Bank 1. PROMISE TO PAY: I:i1 return for the Loan. Ilomlwer promises 10 pay 10 the order of Lender the amounl of FIVE HUNDRED THOUSAND AND NO/I 00 Dollars, inlereSI ou the unpaid principal balance, and all other amounts required by tbia Note. 2. DEFINITIONS: "Collareral" means any property taken as security for paymeut of this Note or any guarantee of this Note. "Guarantor" means each person or entity that signs a guarantee of payment of this Note. "Loan" means the loan evidenced by this Note, "'Loan Documents" means the documents related 10 this loan signed by Borrower. any Guarantor, or anyone who pledges collateral. "SBA" means the Small Business Adminislraliou, IU Agency oftbe United Stales of America. " . . Page 1/8 Bankers Systems, Inc., SL Cloud, MN . SBA Form 147 (0&'03/02J Version 4.1 3. PAYMENT TERMS: BOltOwer musl make all payments at the place Lender designates. The payment term5 for this NolO are: , The interest rate on this Note will fluctuate. The initial interest rate is 7.500% per year. This initial rate is the prime rate on the date SBA received the loan application, plus 2.75%. The initial interest rate must remain in effect until the first change period begins. "-.J Borrower must pay principal and interest payments of $7,547.00 every month, beginning one month from the month of initial disbursement on this Note; payments must be made on the same day as the date of initi~1 .disbw:sl!mAnt nn thi~ Nnte in the months they are due. Lender will apply each installment payment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees, and will apply any remaining balance to reduce principal. The interest rate will be adjusted quarterly (the "change period"), The 'Prime Rate" is the prime rate in effect on the first business day of the month in which an interest rate change occurs, a published in the Wall Street Journal on the next business day. , The adjusted interest rate will be 2.75% above the Prime Rate. Lender will adjust the interest rate on the first calendar day of each change period. The change in interest rate is effective on that day whether or not Lender gives Borrower notice of the change. The initial interest rate must remain in effect until the first change period begins. , Lender must adjust the payment amount at least ~~Iy as needed to amortize principal over the remaining tenn of the note. If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate becomes fixed at the rate in effect at the time of the earliest uncured paYl)'lent default. If there is no uncured payment default, the rate becomes fixed at the rate in effect at the time of purchase. '" All remaining principal and accrued interest is due and payable 7 years from date of Note. Late Charge: If a payment on this Note is more than 10 days late, Lender may charge Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment. Loan Prepayment: Notwithstanding any provision in this Note to the contrary: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If Borrower prepays more that 20 percent of the Loan and the Loan has been sold on the secondary market, Borrower must: a. Give Lender written notice: b. Pay all accrued interest; and c. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an amount equal to 21 days interest from the date Lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b., above. $SA Fonn 147 (08103102) Version 4.1 Page 216 Bankers Systems, Inc., SL Cloud, MN 4. DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if BOltOwer or Operating Company: A. Fails 10 do anything required by this Note and other Loan Documents; B. Defaults on any other loan with Lender; C. Does not preserve, or account ro Lender's satisfactioo for, any of the Collarerai or its proceeds; D. Does not disclose, or anyone acting on their hehalf does not disclose, any material facl to Lender or SBA; E. Makes, or anyone acting on their behalf makes, a mareriaIly false or misleading representation 10 Lender or SBA; F. Defaults on any loan or agreement with another creditor, if Lender believes the default may mareriaIly affect BOlTower's ability 10 pay this Note; G. Fails 10 pay any taxes when due; H. Becomes the subject of a proceeding under any bankruptcy or iosolvency law; l. Has a receiver or liquidator appointed for any part of their business or property; J. Makes an assignment for the benefit of credilDr1: K. Has any adverse change in financial CODdition or business oper1llioo that Lender believes may mareriaIly affect BOltOwer's ability to pay this Note; L. Reorganizes, merges, consolidates. or otherwise changes ownership or business strucaue without Lender"s prior written consent; or M. Becomes the subject of a civil or criminal actiou that Lender believes may materially affect Borrower's ability to pay this Note. 5. LENDER'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, Lender may: A. Require immedialO payment of all amounts owing under this Note: B. Collect all amounts owing from any Borrower or Guarantor; C. File suit aod obtain judgment: D. Take possessioo of any Collareral; or E. Sell, l...e, or otherwise dispose of, any Collareral at public or privare sale, with or wilbout advertisement. 6. LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A. Bid on or buy the Collateral at its sale or the sale of aoother lienholder, at any price it chooses; B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan DocumenL and preserve or dispose of the Collateral. Among other thiogs, the expenses may include payments for property taltes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attomcy's fees and costs. If Lender incurs such expenses, it may demand ilIImodiare repayment from Borrower or add the expenses to the principal balance; C. Rele... anyone obligated 10 pay this Note; D. Compromise, rele..., renew, extend or substiture any of the Collarerai; and E. Take any action necessary to protect the Collareral or collect amounts owing on this Note. SBA Fa"" , 47 (06I03IU2) v~ 4.' Page 3/8 Bankers Systems, Inc., St Cloud, MN 7. WHEN FEDERAL LAW APPLIES: When SBA is the bolder, this Nore will be interpreted and enforced under federa1law, including SBA regulations. Lender or SBA may use stare or local procedures for filing papers, recording documeots, giving ootice, foreclosing liens, and other purposes. By Using such procedures, SBA does not waive any federal immunity from stale or local control, penalty, taX, or liability. As to this Nore, BOltOwer may oot claim or assel1 against SBA any local or stare law to deny any obligation. defeat any claim of SBA, or preempt federal law. 8. SUCCESSORS AND ASSIGNS: Under this Nore, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns. 9. GENERAL PROVISIONS: A. All individuals and entities signing this Nore are jointly and severally liable. B. BOltOwer waives all suretyship defenses. C. BOltOwer must sign all documents necessary at any time 10 comply with the Loan Documents and to enable Lender 10 acquire. perfect, or maintain Leoder's liens on Collateral, D. Lender may exercise any of its rights separarely or together, as many times and in ony order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E. BOltOwer may not use an oral stalement of Lender or SBA 10 contradict or alter the written IOlIDS of this NolO. F. If any part of this NolO is unenforceable, all other parts remain in effecL G. To the extent aIlowed by law, Borrower waives all demands and notices in connection with this Nore, including presentmeu1, demand, proresL and ootice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfecL or maintain alien upon COUatera1: impaired CoUareral; or did not obtain the fair market value of Collateral at a sale. SBA Fonn , 47 (0lI/03Ill2) V..- 4.1 Page 418 Bankers SyslBma, Inc., St Cloud, MN 10. STATE.SPECIFIC PROVISIONS: WARRANT OF AUTHORITY TO CONFESS JUDGEMENT. Upon defaul~ in addition to all other remedies and righls avaUablelO you, by signing below I irrevocably aulhorize the prolhonotary, clerk, or any attorney to appear in any court of record having jurisdiction over this matter and to conleas judgment againat me al any time without stay of execution. I waive notice, service of process, and procesa. I agree and understand that judgment mey be confessed agalnat me for any unpaid principal, accrued charges due on Ihis Note, plus collection costs and reasonable a1tomeys' fees up 10 15 percent of the judgemenl The oxercise 01 the power 10 confess judgment will not exhausllhis werrant of aulhorily to understand Ihat my property may be aeized without prior notice 10 satisfy the debl owed. I knowingly, intentionally, and voluntarily waive any and all conatilutional rights I have to pre-deprivation notice and hearing under federal and state laws and fully understand the consequences of this waiver. SBA Fonn 147 (06103I02) Varsion 4.1 Paga SI8 Bankers Systama, Inc., Sl. Cloud, MN II. BORROWER'S NAME(S) AND SIGNA TURE(S): By signing below, each individual or entity becomes obligated UDder this Note as Borrower. HealthCore, LLC SBA Fonn 147 (QM)3IQ2) Vef8ian 4.1 Apr1l 30, 2003 Ap~1 30, 2003 Page 618 Bankers Systems, Inc" SL Cloud, MN c \) ~'. \'), ~~ TUCKERIARE~~~fn~~ F. Stephenson Matthea amallhea@tuckerlaw.com September 16, 2004 VIA CERTIFIED MAILi RETURN RECEIPT REQUESTED NO, 7002 2410 000123672348 AND FIRST CLASS MAIL Jenine J. Kerr Krista K. Baer HealthCore, LLC 47 West Pomfret Street Carlisle, PA 17013 RE: Promissory Note dated April 30, 2003 (SBA Loan) in Principal Amount of $500,000 Between HealthCore, LLC and The Legacy Bank Notice of Default and Demand for Payment Dear Ms, Kerr and Ms. Baer: This office represents The Legacy Bank ("Legacy" or "Lender"), Reference is made to that certain Promissory Note dated April 30, 2003 (the "Note" in the principal amount of $500,000, which was executed and delivered to Legacy by HealthCore, LLC ("Borrower"). Reference is further made to that certain Commercial Security Agreement dated April 30, 2003 (the "Security Agreemenf'), which was executed and delivered by the Borrower to Legacy. The paragraph of the Note entitled "DEFAULT" provides, in part, that Borrower will be in default if "Borrower does not make a payment when due under this Note or if Borrower or Operating Company: (a) fails to do anything required by this Note and other Loan Documents; (b) defaults on any other loan with Lender; (c) does not preserve or account to Lender's satisfaction for, any of the Collateral or its proceeds; (d) fails to pay any taxes when due; ... ". The Note provides that upon default, Lender may "(a) require immediate of all amounts owing under this Note; (b) collect all amounts owing from any Borrower or Guarantor; (c) file suit and obtain judgment; (d) take possession of any Collateral; or (e) sell, lease or otherwise dispose of any Collateral at public or private sale with or without advertisement" Borrower is presently in default for numerous reasons including a failure to make payments when due on several loan obligations to Legacy, as well as for failing to make tax payments when due. Pursuant to the direction of Legacy Bank, we hereby notify you that Legacy Bank declares the entire' balance under the Notes immediately due and payable and demands immediate payment of all principal, interest, and fees, currently $444,454.49, together with accruing interest, attorneys' fees and other expenses. This balance is current as of September 15, 2004, but does not include attorneys' fees and costs. For a complete breakdown of the same, please contact the undersigned. Tucker Arenaba'g. P.C. 111 North Fronl Streer P.O. Box 889 Harrlsburg, PA 17108 www.tuckerlaw.com - - p.800.257,4121 p.717.234.4121 f. 71~2rao2 TUCKERIAREN;,~~?,~~ Jenine J. Kerr Krista K. Baer September 16, 2004 Page 2 Payment should be made by cashier's check or wire transfer to The Legacy Bank, 2600 Commerce Drive, Harrisburg, PA 17110. The Legacy Bank reserves all rights and remedies that it has under the Note, any other loan documents executed in cDnnection with the Note, any other loan documents by the Borrower, any third party obligor, any pledgor, any guarantor and/or at law or in equity. Thank you for your immediate attention to this matter. Very truly yours, T{C~ER ARENSBERG, P.C. I \ \. ' F.~Phenson Matthes FSM/dth cc: Jenine J. Kerr Ronald W.Baer Krista K. Baer W&C Realty & Holdings, L.P. HealthCore of Maryland, LLC HealthCore of Ohio, LLC 71852.1 D . 'oi \ ~, ~} Exhibit 0 TUCKERIAREl\{~~~~ F. Stephenson Matthea ametlhes@tucke~aw.com September 22, 2004 VIA FACSIMILE, CERTIFIED MAIL, RETURN RECEIPT REQUESTED NO, 7002 2410 0001 2367 2799 AND FIRST CLASS MAIL HealthCore of Ohio, LLC 47 West Pomfret Street Carlisle, PA 17013 RE: Guaranty of Promissory Note dated April 30, 2003 (SBA Loan) in Principal Amount of $500,000 Between HealthCore, LLC and The Legacy Bank Notice of Default and Demand for Payment To Whom It May Concern: This office represents The Legacy Bank ("Legacy" or "Lender"). Reference is made to that certain Promissory Note dated April 30, 2003 (the "Note") in the principal amount of $500,000, which was executed and delivered to Legacy by HealthCore, LLC ("Borrower"). Reference is further made to that certain Commercial Security Agreement dated April 30, 2003 (the "Security Agreemenf'), which was executed and delivered by the Borrower to Legacy. Reference is further made to that certain Unconditional Guaranty dated April 30, 2003 (the "Guarantee"), which was executed and delivered to Legacy by HealthCore of Ohio, LLC. (the "Guarantor"). The paragraph of the Note entitled "DEFAULT" provides, in part, that Borrower will be in default if "Borrower does not make a payment when due under this Note or if Borrower or Operating Company: (a) fails to do anything required by this Note and other Loan Documents; {b} defaults Dn any other loan with Lender; (c) does not preserve or account to Lender's satisfaction for, any of the Collateral or its proceeds; Cd} fails to pay any taxes when due; ... ". The Note provides that upon default, Lender may "{a} require immediate of all amounts owing under this Note; {b} collect all amounts owing from any Borrower or Guarantor; {c} file suit and obtain judgment; Cd} take possession of any Collateral; or {e} sell, lease or otherwise dispose of any Collateral at public or private sale with or without advertisement." Borrower is presently in default for numerous reasons including a failure to make payments when due on several loan obligations to Legacy, as well as for failing to make tax payments when due. By letter dated September 16, 2004, Legacy declared the Borrower to be in Default under the Note and made demand for immediate payment in full of all amounts due and owing under the Note. Pursuant to Section 1 of the Guarantee, Guarantor agreed to pay all amounts due under the Note when Lender makes written demand upon the Guarantor for payment. Tucker Arensberg, P.C. 111 North Front Street P.O. Box 889 Harrisburg, PA 17108 www.tuckerlaw.com p.800.257.4121 p.717.234.4121 I. 717.232.6802 TUCKERIAREl\{~~~ HealthCore of Ohio, LLC September 22, 2004 Page 2 Pursuant to the direction of Legacy Bank, we hereby notify you that Legacy Bank hereby makes demand for payment of the entire balance under the Note pursuant to the Guarantee and demands immediate payment of all principal, interest and fees currently $444,4~.49, together with accruing interest, attorneys' fees and oth~r expens~. This balance IS current as of SeDIAmh..r 11; ?nllA ..,.. ...___ __" '__'__J_ .. TUCKERIARE~~~~~ HealthCore of Ohio, LLC September 22, 2004 Page 2 Pursuant to the direction of Legacy Bank, we hereby notify you that Legacy Bank hereby makes demand for payment of the entire balance under the Note pursuant to the Guarantee and demands immediate payment of all principal, interest, and fees, currently $444,454.49, together with accruing interest, attomeys' fees and other expenses. This balance is current as of September 15, 2004, but does not include attorneys' fees and costs. For a complete breakdown of the same, please contact the undersigned. Payment should be made by cashier's check or wire transfer to The Legacy Bank, 2600 Commerce Drive, Harrisburg, PA 17110. The Legacy Bank reserves all rights and remedies that it has under the NDte, any other loan documents executed in connection with the Note, any other loan documents by the Borrower, any third party obligor, any pledgor, any guarantor and/or at law or in equity. Thank you for your immediate attention to this matter. Very truly yours, ~;:;;;::::'~~/tiP- F. Stephenson Matthes FSM/dth cc: Jenine J. Kerr Ronald W. Baer Krista K. Baer W&C Realty & Holdings, L.P. HealthCore of Maryland, LLC HealthCore, LLC BANK..FIN:232806-1 018988-120545 D' .~ENSBERG, P .C. "'{uc\<btepnenson Matthes 'O'oI..'A \.0. No. 67408 40rth Front Street ). Boll. 889 larrisburg, PA 17108-0889 Telephone: 717_234-4121 Facsimile: 717_232-6802 THE LEGACY BANK. 2600 Commerce Drive Harrisburg, PA 17110. COURT OF COMMON PLEAS CUMBERLAND COUNT'l n ,.u ,... , ,-, , " ., ;"1 -- , '. .-' ." , i , .' , , ; i .. t- , . -- , , - .. . . .....l -. .-..:,; r .. Plaintiff . CIVIL DIVISION NO. ..., .- v. HEALTHCORE OF OHIO, LLC 47 West pomfret Street Carlisle, PA 17013, Defendant. AFF\DAV\T - COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS. Do' S","'" """" du~ .worn --"",g '" \a'N, ....... a"" ..... .... he " a '-"'" ........ ~ o' 1he ....a'" Baok, ..at he " du~ """"""" '" m.... .." """,... on heha' of P\8jQ\\!t, ..at ... _ ,at forth iO ... _iOl! comP"iOIl' con- 01 J"""","^, are.... aod "'.... ",... -' of h. ~ ond -, .od....... ""","01aO (as...... iO'" comP"iOIl wh;ch "a....... as on """"" . , lhe Com""in", eo"......, Of J""_ Is . "'e .... 0.",,,, """" of lhe ""9>>" executed by the Defendant. Swam to and subsCribed before me - day of September, 2004. , view Officer ~,... l ~~::-- ~~-.-....,~ ~.,"'~ -2- r-) (~ r-.' r.~ ~~ ,r> i_~~; ..-\ -r: -,.. ~. .. r-:, c.", -;1 ,; ... ~',':.. ,:"...~ (,.,> :'.....c., : 1." '_:..\.,- -" \'~~i. ~:" ..., S'. , '~I C' .~ ':-.i. ...... ~~ ::? - - .' o. TUCKER ARENSBERG, P,C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, NO, Defendant. AFFIDAVIT OF NON-MILITARY SERVICE COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY : SS Before me, the undersigned Notary Public, in and for said County and State, personally appeared Don Signor, Loan Review Officer of The Legacy Bank, Plaintiff herein who, as an authorized representative thereof, being duly swom according to law, deposes and says that the Defendant is not in the military service of the United States of America, to the best of his knowledge, information and belief. 7 Don Signor, oan The Legacy Bank ~ iew Officer ,0_ ,.., ...., (") t::';J ~ ..~ -, 1 , (,"" , : 0', . .01." i ..-J - .' l'.~ ~) (..j -- .. . -" - 2'" - '- -.. .. --.~ C~. -.- -;.:. :'..", 1" .~. ....; - 0- TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. AFFIDAVIT OF INCOME COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY : SS Don Signor, being duly swom according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; and that to the best of his knowledge, information and belief the income of the Defendant is in excess of $10,000.00 per year. . ~ Officer and Subscribed before me day of September, 2004. I ........ 6eof ,...,,~..., NcIory "'- _OfHorrlolug, DiIupnh Cownlv ~Ca,......., EllpIreo Ape. II. 2007 .........h.. ,fb..-~OfNc:tlrSll (") ""." C) c;:., c :;,.: -., ~~..." " -. , - .- h"~ ,aj , , , ;~ -'.0 ~- j" ~ : r\., :'J '-~: -, C. :jr: " -" 7'" .. ~." . '. - :,.. {'~ ;: .:-:! :;i '" ..:.. (.JL TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P,O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 t), THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, v. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. COURT OF COMMON PLEAS CUMBERLAND COUNTY CIVIL DIVISION NO. AFFIDAVIT OF NONAPPLICABILITY OF GOODS AND SERVICES INSTALLMENT SALES ACT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY : SS Don Signor, being duly sworn according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; that the Complaint In Confession Of Judgment does not arise out of a retail installment sale, contract, or account, as defined under the Goods and Services Installment Sales Act, 69 Pa. Stat. Ann. 51101, et ~.; and that the foregoing facts are true and correct to the best of his knowledge, information and belief. '. Swor[1 to and Subscribed before me t . day of September, 20 otary Public 7 29.1 ~&IIII DImft..., NclIry PIAlIc CIty Of t-IerrioIug, DaCJhil ~ My ~ ElcpIJwo ..11, :lOD7 f..termer.~,... '~.rOfNDllllrs. ~ Don Signor, L an R The Legacy Bank Officer ;' ..,. :" ~. '" ,,, 1" ~. :: I G ("" ;-,; " "~:" ..~:. -< 1',) U, r.",:,'I "-- c.. ~~~ .. en :l" ."r. !'\: o:,~ j;1._"' , ~:.:-:: -' (" j"i-: , D. TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No, 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. AVERMENT OF DEFAULT COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY SS. Don Signor, being duly swom according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank, that he is a duly authorized representative of Plaintiff; that the Defendant executed the Guarantee (as defined in the Complaint), true and correct copies of which are attached to the Complaint; that the Defendant is in default under the Guarantee; and that there is $445,615,25 due and owing under the Guarantee as of J Y6,2004. ~ and subscribed before me day of September 004. .... ~ Officer _Sell o.-a_,~PIdC CRy or HorItIbuIg. ~ CaunIr My c:orm--. ElcpiIWI ,..11, '1IR1 ........ F'-.~ ........a..... ;'." ...... .':.. ~-=~ ; '.' '. .~.~ . .(:; .' J .:./ '..: X") ./ :" , :-..; " . .;::-.' "0 r,. c:...;' t....." .fJ/ r'",. 1.... :.,.., ,. f'. (l.{ t. '. :-., ;Ij~. :~.'/~.; ..:":-", ", (). TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA I.D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION NO. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. AFFIDAVIT OF COMMERCIAL TRANSACTION COMMONWEALTH OF PENNSYLVANIA CUMBERLAND COUNTY : SS Don Signor, being duly swom according to law, deposes and says that he is a Loan Review Officer of The Legacy Bank; that he is a duly authorized representative of Plaintiff; that the underlying transaction relative to this Complaint In Confession Of Judgment is a commercial transaction to the best of his knowledge, information and belief. ' ~ Sworn t~,\d s~bscribed before is~ay of September, 2004. , . Don Signor, Loan- The Legacy Bank Officer o.rw. tetw.J Sell CIIy OI"-"~ NaIoIy NIle .... . -'-'~CcunIr .... CaI.,....., EllJho "". to 2llO7 .........~-, ,01-... :-" ~ ~_ ~ I ~~: c) ,'. : . r.., ~ ...., ':7") '.", -~ -,) ~? .:....1 ,. i.i-'!" ~.:: c...; :~- '::.1 ., ...~ {. , :-;.i .~:...... :-."" ". ,:, .;;,.. --:, () TUCKER ARENSBERG, P.C. By: F, Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P,O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 COURT OF COMMON PLEAS CUMBERLAND COUNTY THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, Plaintiff, v. CIVIL DIVISION NO. HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, Defendant. ACT 105 OF 2000 NOTICE A JUDGMENT HAS BEEN ENTERED AGAINST YOU BY CONFESSION OF JUDGMENT. PURSUANT TO 42 PA. C.S.A. ~2737.1, IF YOU WERE INCORRECTLY IDENTIFIED AS A DEFENDANT IN THE COMPLAINT IN CONFESSION OF JUDGMENT, YOU MAY BE ENTITLED TO COSTS AND REASONABLE ATTORNEY FEES AS DETERMINED BY THE COURT. YOU MAY TAKE ACTION TO STRIKE THE JUDGMENT BY FOLLOWING THE PROCEDURE IN RULE 2959 WHICH IS AS FOLLOWS: Pennsvlvania Rule of Civil Procedure 2959 - Strikina Off Judament. (a)(1) Relief From a judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open it must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has 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 Pennsylvania Rule of Civil Procedure 2958,3 or Rule 2973.3. (3) If written notice is served upon the petitioner pursuant to Rule 2958.1 (c)(2) or Rule 2973.1 (c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order, (c) A party waives all defenses and objections which are not included in the petition or answer. (d) The petition and the rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending disposition of the application to strike off the judgment. If evidence is produced which 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 is ding. P.C. Dated and Served: September a, 2004 By Certified Mail Return Receipt Requested . S phenson P .D. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 Attorneys for Plaintiff, The Legacy Bank n020.1 -2- t.:. ..., '. . :.--.(., ":..c.' (') ~;;; ..' -<' r'.J .... -.;. ~. '" <::OJ c;,;.', "'- r.~ .,., f~~~ -~ :..~ f j~I=':': 7.,:::r-: ", N CJ ';'.- .::,..: : ."- . ~. ..,'" TUCKER ARENSBERG, P.C. By: F. Stephenson Matthes PA 1.0. No. 67408 111 North Front Street P.O. Box 889 Harrisburg, PA 17108-0889 Telephone: 717-234-4121 Facsimile: 717-232-6802 THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, COURT OF COMMON PLEAS CUMBERLAND COUNTY Plaintiff, v. CIVIL DIVISION HEAL THCORE OF OHIO, LLC 47 West Pomfret Street Carlisle, PA 17013, NO. Defendant. NOTICE Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above-captioned proceeding. Copies of all documents that have been filed with the Prothonotary in support of the Confession of Judgment are attached hereto. If you have any questions concerning this Notice, please call, F. Stephenson Matthes, Esquire, at (717) 234-4121. ,~ VA PRO ONOT. 72021.1 'd' ...n \ ~ ~ 7;- ",' --. ~~: ." -.' ;~) (':'.:. .' ," ~c - -. "'<( c....) ..... r-., ,:", ~::-2 :'~. "1; ::--' .~ t.: -....: '" (".> i"li .-. : .", ~:;-. ,- . ~') .".. .:!-; ." ~'ti:; ,- . . ." ~ -,'. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL DIVISION THE LEGACY BANK, 2600 Commerce Drive, Harrisburg, PA 17110 Plaintiff, NO. 04-4791 vs. PRAECIPE FOR WRIT OF EXECUTION UPON CONFESSION OF JUDGMENT HEALTHCORE OF OHIO, LLC, 47 West pomfret Street Carlisle, PA 17013, Defendant, and Filed on behalf of: The Legacy Bank, Plaintiff CITIZENS BANK, COMMUNITY BANK, M&T BANK, and ---CAPITAL TCMrFUNDS, INC. ' -It'' Garnishees. CODE: Counsel of Record for This Party: F. Stephenson Matthes PA. 1.0. NO. 67408 TUCKER ARENSBERG, P.C. Firm #287' 111 North Front Street P.O. Box 889 Harrisburg, PA 17110 p. 717.2~i4.4121 ~ Sk.erd-f w'ILt ~U( S-ev\K.- ~ kk QQ.\, ~\ '5kc-cs llfs 6-u.f - (j f .. IN THE COURT OF COMMONS PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CIVIL DIVISION Plaintiff, NO. 04-4791 vs. HEAL THCORE OF OHIO, LLC, 47 West pomfret Street, Carlisle, PA 17013, Defendant, and CITIZENS BANK, COMMUNITY BANK, M& T BANK, and CAPITAL TEMPFUNDS,INC. Garnishees. PRAECIPE FOR WRIT OF EXECUTION UPON CONFESSION OF JUDGMENT To the Prothonotary: Issue writ of execution in the above matter, (1) directed to the Sheriff of Cumberland County; (2) against, Healthcore of Ohio, LLC, Defendant; (3) and against '*' SCi: Amc.f\-~b 2>l'If-fT (4) and index this writ (a) against Healthcore of Ohio, LLC, Defendant; (b) and against ~ S~E ATTAtHfc1) .~I1Lft:-, (5) Amount due $ 445.615.25 $ 445.615.25 Total , Garnishees; , Garnishees; CERTIFICATION I certify that: (a) this Praecipe is based upon a judgment entered by confession, and (b) Notice will be served with the Writ of Execution pursuant to Rule 2958.3. CKERARENSBERG, P.C. \1, - St phensl~n Matthes, Esquire P I. .#67408 Attorney for Plaintiff --- -2- -A DDU.ss bA(Jv 15\.\H.. ~'I1'i\~ -rEM'PFu/VDS , INC-, i> 0 'N"'1:-~083" " I\\~' ...-f i "~ \ ('.., 2j> 2.-~O - O~:?'~ u' r-><.~Ci \ It::", IV -.- ..-..~-_.--- C n I'Z. &I-JS 't:i\ t0Y-. ~lPS ~. f'flS'l S1'e.e.f-'1 CA~l-ISI...e:' ,l'f'r n D\3 L OfY);Y1 010 1 rl "Bfl,,",KS 111'6 NtIJ.JV1Ll-f:; \Z.~I'\I) CA~Ll)L--t' I PA /lOI:? fV\ <>t- T J3A'I'-l'K. \ \IV e..ST rt I b\-\- 3i e.E:E:: I tJ\lZ-l'\ 5L-f::- ,pA- liD!:) A~ ~~, pvV ~~ C>~ ~~l IV\ p6S')-t))(W\ O~ ~IWM~~'- ~ l~(j bu-\ ~ IdWU !D au ~ 1M- rJ.>-t6~' ~ {}AJ- /:v..tt tV U'-VlCk ~ i> P~r ~~ ~~ Wl~ ~ t Sk.r~~ ~ I(YI~6~~j\;lS' ~R Zfi ~ v-J ~\. ~ ~. q CX'\ 0' ( I ~ r-~I~ -"'I~ S ~! 'c/\ \...,.: I "" I ! / ~ J ~C;y ---D, <;/\ <@ ~ ru '" :5 ~ -<'"' U) ':::1 p'l F1i:n ~ ~~ p.~ ~; ';;.(j C)'n -~ :I?- .D -< ~ =1: '!? ,,, <=> WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) N004.4791 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due THE LEGACY BANK Plaintiff(s) From HEALTHCORE OF OffiO, LLC, 47 W. POMFRET ST., CAIU"ISLE PA 17013. (1) You are directed to levy upon the property of the defendant (s)ancl to sell (2) You are also directed to attach the property of the defendant(s) not levi,ed upon in the possession of CITIZENSS BANK, 665 N EAST ST, CARLISLE P A 17013: COMMUNITY BANKS, 1178 NEWVILLE RD, CARLISLE PA 17013 AND M&T BANK, 1 W ffiGH ST, CARLISLE PA 17013 GARNISHEE(S) as follows: ATTACH THE PROPERTY OF DEFT IN POSSESSION OF GARNISHEE BANKS INCLUDING BUT NOT LIMITED TO ANY FUNDS ON ACCOUNT AND BANK DEPOSITS, KlNDL Y SERVE INTERROGATORIES UPON GARNISHEE BANKS. and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the accOWlt of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) Ifproperty of the defendant(s) not levied upon an subjecl to attachment is fOWld in the possession of anyone other than a named garnishee, you are direcled to notify himlhe,r that he/she has been added as a garnishee and is enjoined as above slated. Amount Due $445,615,25 Interest Ally'S Comm % Ally Paid $37.50 Plaintiff Paid Date: SEPTEMBER 30, 2004 L.L. $.50 Due Prothy $1.00 Other Costs (Seal) ~:~,:,ISt:~LONG J'~7 By. - f< .' . Deputy REQUESTING PARTY: Name F, STEPHENSON MATTHES, ESQ. Address: POBOX 889, 111 N FRONT ST HARRISBURG PA 17110 Attorney for: PLAINTIFF Telephone: (717) 234-4121 Supreme Court lD No. 67408 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, P A CIVIL DIVISION ) THE LEGACY BANK ) No. 04-4791 ) ) Plaintiff(s), ) Pral~cipe for Appearance ) ) vs. ) Code: 200 Execution ) HEAL THCORE IF OHIO, LLC ) ) Filed on Behalf of Garnishee, ) Citizens Bank of PA Defendant(s), ) ) ) ) vs. ) ) Counsel of Record for ) this Party: CITIZENS BANK OF PA, ) ) David F. Mowrey, Esquire Garnishee. ) ) PA I.D. No. 30431 ) ) 2 Commerce Square ) 2001 Market Street Suite 600 Philadelphia, PA 19103 ) ) (267)-671-1033 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, P A CIVIL DIVISION PRAECIPE TO: Office of the Prothonotary One Courthouse Square Courthouse Carlisle, PA 17013-3387 Sir: Kindly enter my appearance on behalf of Garnishee. Citizens Bank of PA Q~'~ David F. Mowrey, Esquire 2 Commerce Square 2001 Market Street Suite 600 Philadelphia, PA 19103 , . . Certificate of Service I, David F. Mowrey, hereby certify that a true and correct copy of this Praecipe for Appearance has been served upon the following by depositing it in the U. S. Mail, postage prepaid. this ~~day of ()C~ b..elf' ,2004. F. STEPHENSON MATTHES, ESQUIRE III NORTH FRONT STREET P.O. BOX 889 HARRISBURG PA 17110 HEALTHCORE OF OHIO LLC ~7f .,~' ~ . ~'" , '" I.:;'~,; c,';) -<- ~ Co f'-,) c::~ c.., ~' -, )N THE COURT OF COMMONS PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE LEGACY BANK, 2600 Commerce Drive Harrisburg, PA 17110, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Plaintiff, vs. HEAL THCORE OF OHIO, LLC, 47 West Pomfret Street, Carlisle, PA 17013, Defendant, and M& T BANK, Garnishee. CIVIL DIVISION NO. 04-4791 INTERROGATORIES TO GARNISHEE TO: M& T Bank 1 West High Street Carlisle, PA 17013 YOU ARE REQUIRED TO FILE ANSWERS TO THE FOLLOWING INTERROGATORIES WITHIN TWENTY (20) DAYS AFTER SERVICE UPON YOU. FAILURE TO DO SO MAY RESULT IN JUDGMENT AGAINST YOU. 1. At the time you were served or at any subsequent time did you owe the Defendants any money or were you liable to him on any lease, mortgage or on any negotiable or other written instrument, or did they claim that you owed them any money or were liable to them for any reason. ANSWER: JtAlo$' 4t I:'o/va a cf l'1!J. ~ Als.ib~/v ~/vk" ov~ Alcc /v~A.OU/v '''7~o 1'0$' 2. If the answer to Interrogatory 1 is in the affirmative, state the following: (a) the amount of money you owe or owed to Defendants; (b) if such money is in the form of a fund, the present location thereof; (c) the amount or amounts that Defendants claim or claimed that you owe or owed to him; (d) the nature and amount of each of such liabilities. ANSWER: 3. At the time you were served or at any subsequent time was there in your possession, custody or control of yourself and one or more other persons any property of any nature owned solely or in part by the Defendants. ANSWER: 4. If the answer to Interrogatory 3 is in the affirmative, describe the nature, fair market value and present location of each of such properties. ANSWER: 1y"7,sI1'. Itt F: 0 if,. O~ O,o~ S.<1 ..<ISO i1f"7 /ltk" v~ Co Jtt"7A .OUI\I ''7~D r.S' 5. At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or part by the Defendants or in which Defendants held or claimed any Interest? ANSWER: - 2 - 6. If the answer to Interrogatory 5 is in the affirmative, described the nature, fair mar~et value and present location of each of said properties. ANSWER: 7. At the time you were served or at any subsequent time did you hold as fiduciary any property in which the Defendants had an interest? ANSWER: 8. If the answer to Interrogatory 7 is in the affirmative, describe the nature, fair market value and present location of each of such properties. ANSWER: '~'-<1 SIV; 114<f /'r' 00 'l"L!\ ,jty :'<>L'- <.J"A "1e <"'1\1 -IJ\1.t ' Ov~ "9Ca '1\1- Ou, ~4?,t- "011', <..() S 9. At any time before or after you were served, did the Defendants transfer or deliver any property to you or to any person or place pursuant to your directions or consent, and if so what was the consideration thereof? ANSWER: - 3 - 10. If the answer to Interrogatory 9 is in the affirmative, describe the nature, fair market valu!l and present location of each of such properties. ANSWER: ,Ciil <::> "" , !).to ~'J" , r.Jf,,' /1 Op~,.,I3"'1V1r ISO 'v,qe . lho. "'c,. v(:-''''A -,..",' '. "'1,;;, . "7):/ '-'t,..-' 11. At any time after you were served did you pay, transfer or deliver any money or property to the Defendants or to any person or place pursuant to his direction or otherwise discharge any claim of the Defendants against you? ANSWER: BANKJIN:233042-1016986.120545 -4- ~~~~ JANICE M. GU' ~~:'N M&T BAI\f\ 111 North Front Street P.O. Box 889 Harrisburg, PA 17110 p.717.234.4121 "0 ./S O~ bHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04791 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTHCORE OF OHIO LLC And now RICHARD SMITH ,Sheriff or Deputy Sheriff of Cumberland County of pennsylvania, who being duly sworn according to law, at 0012:00 Hours, on the 8th day of October , 2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT HEALTH CORE OF OHIO LLC in the hands, possession, or control of the within named Garnishee M & T BANK 1 WEST HIGH ST CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to KIM SEAVERS (TELLER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her , Sheriff's Costs: Docketing Service Affidavit Surcharge .00 .00 ,00 .00 .00 .00 So ans~~~ // ~~ ~'~-~te.;:l"~c- R. Thomas Kline Sheriff of .Cumberland ~ounty 0010010000 this ;l pi!:' day of (7)r:;&L (}.>>O'-{ A.D. (''L ~ Q n~ ~ pro~;btary , By Dk, Sworn and subscribed to before me SHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04791 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTHCORE OF OHIO LLC And now BRIAN BARRICK ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0014:35 Hours, on the 13th day of October ,2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT HEALTHCORE OF OHIO LLC , in the hands, possession, or control of the within named Garnishee COMMUNITY BANKS 201 ST JOHNS CHURCH RD CAMP HILL, PA 17011 Cumberland County, Pennsylvania, by handing to PAULETTE ROVITO (MANAGER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . Sheriff's Costs: Docketing Service Affidavit Surcharge .00 .00 .00 .00 .00 .00 So answ~./ ~ vL ~(~.VW'_~ R. Thomas Kline Sheriff of Cumberland County this .). ?~ day of {P~ >ZOo L( A.D. C' I'LQ.~~ pr;~otary ( By (Je~; Sheriff 00/00/0000 Sworn and subscribed to before me SHERIFF'S RETURN - GARNISHEE CASE NO: 2004-04791 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND LEGACY BANK THE VS HEALTH CORE OF OHIO LLC And now JASON VIORAL ,Sheriff or Deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at OD14:54 Hours, on the 7th day of October ,2004, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT HEALTH CORE OF OHIO LLC in the hands, possession, or control of the within named Garnishee CITIZENS BANK 665 N EAST ST CARLISLE, PA 17013 Cumberland County, Pennsylvania, by handing to CATHY COLE (ASST. MANAGER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to Her . Sheriff's Costs: Docketing Service Affidavit Surcharge So .'~"~~J R. Thomas Kline' Sheriff of Cumberland County .00 .00 .00 .DO .00 .00 10/18/2004 Sworn and subscribed to before me this .2~2 day of(]J~~ ,;)()(} '-f A. D. (l. ,u_Q ~ ~ ~onotary , By /Z!2 puty Sheriff R. Thomas Kline, Sheriff, who being duly sworn according to law, states this Writ is returned ABANDONED, no action taken in six months. Sheriffs Costs: Docketing Poundage Advertising Law Library Prothonotary Mileage Misc. Surcharge Levy Post Pone Sale Garnishee TOTAL 18.00 3.76 .50 1.00 11.10 70.00 60.00 27.00 191.36 Sworn and Subscribed to before me this Sf:: day 0: 7Vt...lur 2005 A.D. \..l:J" .O~. pro 0 otary g Z :E d I - DO ~OOl Itd 'A1NnO;J iJNlI j(l3810103 .:l.:l1~3HS 3Hl .:lO 331.:l.:l0 Advance Costs: 275.00 Sheriffs Costs 191.36 83.64 Refunded to Atty on 05/03/05 SS.An~rs;~ ~' ~~~~ ',~ R. Thomas Kline, eriff ~ ~ By~yUuJhz.L~/ ~ ..... (Z~. ~.. __fRJ I:;-~:~;:q ) \.~0 ,) ,J ''.r~ c\ '1''{ ~~ 1~.!I,:po'{