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HomeMy WebLinkAbout13-1321 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith �� of�:arrat+rr4# Chief Deputy Richard W Stewart °� `���° Solicitor 6MCE Cir THE s4 RIr: Susquehanna Bank vs. Case Number Peril Diagnostics, Inc. 2013-1321 SHERIFF'S RETURN OF SERVICE 03114/2013 02:23 PM-Deputy Stephen Bender, being duly swom according to law, served the requested Confession of Judgment; Complaint in Confession of Judgment; and Notice Under Rule 2958.1 of Judgment and Execution Thereon by handing a true copy to a person representing themselves to be Nava Nawaz, Partner Peril Diagnostics,who accepted as"Adult Person in Charge"for Peril Diagnostics, Inc. at 5010 Ritter Road, Suite 104, Lower Allen, Mechanicsburg, PA 17055. STEPHEN NDER, DEPUTY SHERIFF COST: $38.00 SO ANSWERS, .- March 15, 2013 RON R ANDERSON, SHERIFF rnuD a• ter.Y .r Cn _. r") C_- T, March 28, 2013 Malik M. Nawaz&Nava K.Nawaz(Prose) r- -D ° ` y 'ta `rl Perll Diagnostics, Inc. C' R' 5010 Ritter Road, Ste 104, Mechanicsburg,PA 17055 Telephone(570)394-2776 (Prose) SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, V. PENNSYLVANIA PERLL DIAGNOSTICS, INC Defendant CIVIL ACTION -LAW No. 113-1?)211 Civil PETITION TO OPEN/RELIEF OF JUDGEMENT On May 11, 2011, a commercial business loan was approved for Perll Diagnostics, Inc. in the amount of $450,000. Your honor, a true copy of the note is attached in Exhibit"A". The defendant, Perll Diagnostics, Inc. made monthly payments to both loans; Exhibit`B". In June 2012, the Defendant sent an e-mail to Susquehanna Bank with the intention of prepaying the loan in lump sum by the sale of the property in Danville PA; Exhibit"C". The defendant prepaid the loan in Lump sum$133,705.99 in October 2012; Exhibit"D". This prepaid the commercial loan in advance,till August 2014. Despite the lump sum prepayment of($133,705.99), in October 2012 the defendant received a notice from the bank on Nov 26`h 2012 to pay the full balance of the loan within 15 days; Exhibit"E". The loan is not in default and there are no legal grounds to enter a confession of judgment. Wherefore,the defendant prays your Honorable Court to open judgment to resolve this matter. Respectfully submitted, CYnA&It 47, • 1� Malik M. Nawaz U& Nava K. Nawaz A :H1jM t7 .A TJ.S. Small BustriCss Ad a AUTHORIZATION (SBA 7(A) GUARANTEED LOAN) SBA Loan# 46085150-09 SBA Loan Name Peril Diagnostics,Inc. Approval Date March 30,2011 Lender: U. S. Small Business Administration(SBA): Susquehanna Bank Philadelphia District Office 159 E.High Street Parkview Towers Pottstown,PA 19464 1150 First Avenue-Suite 1001 King of Prussia,PA 19406 SBA approves,under Section 7(a)of the Small Business Act as amended,Lender's application,received March 30,2011,for SBA to guarantee 75.00%of a loan("Loan")in the amount of$450,000.00 to assist: Borrower: 1. Peril Diagnostics,Inc. 5010 Ritter Road Suite 104 Mechanicsburg,PA 17055 All requirements in the Authorization which refer to Borrower also apply to any Co-Borrower, A. THE GUARANTEE FEE IS$10,125.00. Lender must pay the guarantee fee within 90 days of the approval date of this Authorization. Failure to timely pay the guarantee fee will result in cancellation of the SBA guarantee. The 90-day deadline may not be extended. Lenders are required to make their payments electronically. Payment can be made at www.pay.gov or by ACH if they have previously enrolled with the SBA. No part of the guarantee fee is refundable if Lender has made any disbursement Lender may collect this fee from Borrower after initial disbursement of Loan. Borrow"may use Loan proceeds to reimburse Lender for the guarantee fee. For loans of$150,000 or less,Lender may retain 25%of the guarantee fee but must remit the remainder to SBA. B. ONGOING SERVICING FEE 1. Lender agrees to pay SBA an ongoing fee equal to 0.550 of one percent per year of the guaranteed portion of the outstanding balance. SBA Loan Number: 46085150-09 Page I SBA Loan Name: Peril Diagnostics, Inc, (7a Wizard 2009.4) 2. Lender may not charge or otherwise pass through this fee to Borrower. C. IT IS LENDER'S SOLE RESPONSIBILITY TO: I. Close the Loan in accordance with the terms and conditions of this Authorization. 2. Obtain valid and enforceable Loan documents,including obtaining the signature or written consent of any obligor's spouse if such consent or signature is necessary to bind the marital community or create a valid lien on marital property. 3. Retain all Loan closing documents. Lender must submit these documents,along with other required documents,to SBA for review if Lender requests SBA to honor its guarantee on the Loan, or at any time SBA requests the documents for review. D. REQUIRED FORMS I. Lender may use its own forms except as otherwise instructed in this Authorization. Lender must use the following SBA forms for the Loan: SBA Form 147,Note SBA Form 1050,Settlement Sheet SBA Form 159(7(a)),Compensation Agreement, for each required agent SBA Form 722,Equal Opportunity Poster SBA Form 148,Guarantee 2. Lender may use computer-generated versions of mandatory SBA Forms,as long as these versions are exact reproductions. E. CONTINGENCIES—SBA issues this Authorization in reliance on representations in the Loan application, including supporting documents. The guarantee is contingent upon Lender. 1. Having and complying with a valid SBA Loan Guarantee Agreement(SBA Form 750 or SBA Form 750B for short-term loans)and any required supplemental guarantee agreements,between Lender and SBA; 2. Having paid the full guarantee fee in the time and manner required by this Authorization and the SOP; 3. Complying with the current SBA Standard Operating Procedures(SOP); 4. Completing disbursement no later than 6 months from the approval date of this Authorization, unless the disbursement period is extended by proper SBA procedures. (The final disbursement period cannot exceed 48 months from the approval date of this Authorization. Any undisbursed balance remaining after 48 months will be automatically cancelled by SBA); 5. Having no evidence since the date of the Loan application,or since any preceding disbursement, of any unremedied adverse change in the financial condition,organization,management, operation, or assets of Borrower or Operating Company which would warrant withholding or not making any further disbursement;and, 6. Satisfying all of the conditions in this Authorization. SBA Loan Number: 46085150-09 page 2 SBA Loan Name: Peril Diagnostics,Inc. (7a Wizard 2009.4) F. NOTE TERMS: 1. Maturity: This Note will mature in 10 years from date of Note. 2. Repayment Terms: Lender must insert onto SBA Note,Form 147, to be executed by Borrower,the following terms,without modification. Lender must complete all blank terms on the Note at time of closing: The interest rate on this Note will fluctuate. The initial interest rate is 6.00%per year. This initial rate is the prime rate in effect on the first business day of the month in which SBA received the loan application,plus 2.75%. The initial interest rate must remain in effect until the first change period begins. Borrower must pay a total of 6 payments of interest only on the disbursed principal balance beginning one month from the month this Note is dated and every month thereafter;payments must be made on the first calendar day in the months they are due. Borrower must pay principal and interest payments of$5,188.27 every month,beginning seven months from the month this Note is dated; payments must be made on the first calendar day 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 every calendar quarter(the"change period"). The "Prime Rate" is the prime rate in effect on the first business day of the month(as published in the Wall Street Journal)in which SBA received the application,or any interest rate change occurs. Base Rates will be rounded to two decimal places with .004 being rounded down and .005 being rounded up. 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. Lender must adjust the payment amount at least annually as needed to amortize principal over the remaining terra 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 payment default. If there is no uncured payment default,the rate becomes fixed at the rate in effect at the time of purchase. Loan Prepayment: Notwithstanding any provision in this Note to the contrary: Borrower may prepay this Note. Borrower may prepay 20%or less of the unpaid principal balance at any time without notice. If Borrower prepays more than 20%and the Loan has been sold on the secondary market,Borrower must: a. Give Lender written notice; SBA Loan Number: 46085150-09 Page 3 SBA Loan Name: Peril Diagnostics,Inc. (7a wizard 2009.4) 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 tender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b.,above. If Borrower does not prepay within 30 days from the date Lender receives the notice,Borrower must give Lender a new notice. All remaining principal and accrued interest is due and payable 10 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 5.00°%of the unpaid portion of the regularly scheduled payment. 3. Lender must include confession of judgment clauses in the Note for borrower(s)resident in Pennsylvania. G. USE OF PROCEEDS 1. $58,484.00 to purchase equipment. 2. $381,017.00 for working capital. 3. $10,499.00 for furniture and fixtures. All amounts listed above are approximate. Lender may not disburse Loan proceeds solely to pay the guarantee fee. Lender may disburse to Borrower,as working capital only,fiends not spent for the fisted purposes as long as those funds do not exceed 10%of the specific purpose authorized or $10,000.00,whichever is less. An Eligible Passive Company may not receive working capital funds. The loan must be made for a sound business purpose and must benefit the small business,and one 7(a)loan may not be split into two 7(a)loans merely to benefit the Lender. 13 CFR 120.120 and 120.130(e) Lender must document that Borrower used the loan proceeds for the purposes stated in this Authorization. Lender and Borrower must complete and sign SBA Forth 1050 at the time of first disbursement. Lender must document the first and all subsequent disbursements by attaching required documentation to the original SBA Form 1050 and must maintain the documentation in the Loan file, following procedures described in SOP 50-10(5). H. COLLATERAL CONDITIONS Lender must obtain a lien on 100%of the interests in the following collateral and properly perfect all lien positions: 1. First Perfected Security Interest,subject to no other liens,in the following personal property(including any proceeds and products),acquired with loan or project proceeds, SBA Loan Number: 46085150-09 page 4 SBA Loan Name: Peril Diagnostics, Inc. (7a Wizard 2009.4) including all replacements and substitutions,wherever located: Equipment;Inventory;Accounts;Instruments;Chattel Paper,General Intangibles; a. Lender must obtain a written agreement from all Lessors(including sublessors)agreeing to:(1)Subordinate to Lender Lessor's interest,if any,in this property;(2)Provide Lender written notice of default and reasonable opportunity to cure the default;and(3)Allow Lender the right to take possession and dispose of or remove the collateral. b. Lender must obtain a list of all equipment and f ctures that are collateral for the Loan. For items with a unit value of$5,000 or more,the list must include a description and serial number, if applicable. c. Lender must obtain an appropriate Uniform Commercial Code lien search evidencing all required lien positions.If UCC search is not available,another type of lien search may be substituted. 2. Guarantee on SBA Form 148,by Malik M.&Nava K.Nawaz,resident in Pennsylvania. Secured by: a. Second Mortgage on land and improvements located at 21 Erin Drive,Danville PA 17821.This property is residential. (1) Subject only to prior lien(s)as follows: (a) First: JP Morgan Chase NA in the amount of$402,500.00 (2) Evidence of title and priority of lien must be based upon: (a) Title and/or Lien Search or other evidence of proper ownership and lien position. b. Second Mortgage on land and improvements located at 6353 Galleon Drive, Mechanicsburg PA 17050.This property is residential. (1) Subject only to prior lien(s)as follows: (a) First: 1P Morgan Chase Bank,NA in the amount of$13 5,000.00 (2) Evidence of title and priority of lien must be based upon (a) Title and/or Lien Search or other evidence of proper ownership and lien position. c., First Mortgage,on land and improvements located at 11922 Bates Court,Orland Park IL 64467.This property is residential. (1) Subject to no other liens. (2) Evidence of title and priority of lien must be based upon: (a) Title and/or Lien Search or other evidence of proper ownership and lien position. The following language must appear in all lien instruments including Mortgages,Deeds of Trust,and Security Agreements: "The Loan secured by this lien was made under a United States Small Business Administration (SBA) nationwide program which uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA regulations. a) When SBA is the holder of the Note,this document and all documents evidencing or securing this Loam will be construed in accordance with federal law. b) Lender or SBA may use local or state procedures for purposes such as filing papers, recording documents,giving notice,foreclosing liens, and other purposes. By using these procedures, SBA does not waive any federal immunity from local or state control,penalty, tax or liability.No Borrower or Guarantor may claim or assert against SBA any local or SBA Loan Number: 46085150-09 Page 5 SBA Loan Name: Peril Diagnostics,Inc. (7a arms 20e9.4) state law to decry any obligation of Borrower, or defeat any claim of SBA with respect to this Loan. Any clause in this document requiring arbitration is not enforceable when SBA is the holder of the Note secured by this instrument." Pennsylvania Mandatory Provision--Lender must include valid confession of judgment clauses in guarantees signed by Pennsylvania residents. 1. ADDITIONAL CONDITIONS 1. Insurance Requirements Prior to disbursement,Lender must require Borrower to obtain the following insurance coverage and maintain this coverage for the life of Loan: a. Flood Insurance. Based on the Standard Flood Hazard.Determination(FEMA Form 81-93): (1) If any portion of a building that is collateral for the Loan is located in a special flood hazard area,Lender must require Borrower to obtain flood insurance for the building under the NFIP. (2) If any equipment,fixtures,or inventory that is collateral for the loan("Personal Property Collateral")is in a building any portion of which is located in a special flood hazard area and that building is collateral for the Loan,.Lender must require Borrower to also obtain flood insurance for the Personal Property Collateral under the NFIP. (3) If any equipment,fixtures,or inventory that is collateral for the loan('`Personal Property Collateral")is in a building any portion of which is located in a special flood hazard area and that building is not collateral for the Loan,Lender must require Borrower to obtain available flood insurance for the Personal Property Collateral. Lender may waive SBA's requirement for flood insurance for the Personal Property Collateral when the building is not collateral for the Loan,but only if Lender,using prudent lending standards,puts a written determination into the loan file that flood insurance is either not available or not economically feasible. Insurance coverage must be in amounts equal to the lesser of the insurable value of the property or the maximum limit of coverage available. Insurance coverage must contain a MORTGAGEE CLAUSE/LENDEWS LOSS PAYABLE CLAUSE(or substantial equivalent)in favor of Lender. This clause must provide that any action or failure to act by the debtor or owner of the insured property will not invalidate the interest of Lender and SBA. (Borrower will be ineligible for any future SBA disaster assistance or business loan assistance if Borrower does not maintain any required flood insurance for the entire term of the Loan.) b. Real Estate Hazard Insurance,coverage on all real estate that is collateral for the Loan in the amount of the full replacement cost If full replacement cost insurance is not available, coverage must be for maximum insurable value. Insurance coverage must contain a MORTGAGEE CLAUS (or substantial equivalent)in favor of Lender. This clause must provide that any action or failure to act by the mortgagor or owner of the insured property will not invalidate the interest of Lender.The policy or endorsements must provide for at least 10 days prior written notice to Lender of policy cancellation. SBA Loan Number: 46085150.09 Page 6 SBA Loan Name: Peril Diagnostics,Inc. (7a Wizard 2009.0 c. Personal Property Hazard Insurance coverage on all equipment, fixtures or inventory that is collateral for the Loan,in the amount of full replacement costs. If full replacement cost insurance is not available, coverage must be for maximum insurable value. Insurance coverage must contain a LENDER'S LOSS PAYABLE CLAUSE in favor of Lender. This clause must provide that any action or failure to act by the debtor or owner of the insured property will not invalidate the interest of Lender. The policy or endorsements must provide for at least 10 days prior written notice to Lender of policy cancellation. d. Life Insurance,satisfactory to Lender; (1) on the life of Nava K.Nawaz in the amount of$450,000.00. (2) on the life of Malik M.Nawaz in the amount of$450,000.00. Lender must obtain a collateral assignment of each policy with Lender as assignee and Lender must also obtain acknowledgment of the assignment by the Home Office of the Insurer. Lender must assure that Borrower pays the premium on the policy. e. Liability Insurance in an amount and with an insurance company satisfactory to Lender. f. Workers' Compensation Insurance in an amount meeting state law requirements and with an insurance company satisfactory to Lender. 2. Borrower,Guarantor and Operating Company Documents a. Prior to closing,Lender must obtain from Borrower,Guarantor and Operating Company a current copy of each of the following as appropriate: (1) Corporate Documents---Articles or Certificate of Incorporation(with amendments), any By-laws,Certificate of Good Standing(or equivalent),Corporate Borrowing Resolution,and, if a foreign corporation,current authority to do business within this state. (2) Limited Liability Company(LLC)Documents--Articles of Organization(with amendments),Fact Statement or Certificate of Existence,Operating Agreement, Borrowing Resolution,and evidence of registration with the appropriate authority. (3) General Partnership Documents—Partnership Agreement,Certificate as to Partners, and Certificate of Partnership or Good Standing(or equivalent),as applicable. (4) Limited Partnership Documents—Partnership Agreement,Certificate as to Partners, and Certificate of Partnership or Good Standing(or equivalent),as applicable, Certificate of Limited Partnership,and evidence of registration with the appropriate authority. (5) Limited Liability Partnership(LLP)Documents--Partnership Agreement, Certificate as to Partners,Certificate of Partnership or Good Standing(or equivalent) as applicable,and evidence of registration with the appropriate authority. (6) Trustee Certification--A Certificate from the trustee warranting that: (a) The trust will not be revoked or substantially amended for the term of the Loan without the consent of SBA; (b) The trustee has authority to act; (c) The trust has the authority to borrow funds, guarantee loans,and pledge trust assets; (d) If the trust is an Eligible Passive Company, the trustee has authority to lease the property to the Operating Company; (e) There is nothing in the trust agreement that would prevent Lender from realizing on any security interest in trust assets; (f) The trust agreement has specific language confirming the above;and SBA Loan Number: 46085150-09 Page 7 SBA Loan Name: Pertl Diagnostics, Inc. (7a Wizard 20€}9.4) (g) The trustee has provided and will continue to provide SBA with a true and complete list of all trustors and donors. (7) Trade Name—Documentation that Borrower has complied with state requirements for registration of Borrower's trade name(or fictitious name), if one is used. b. Prior to closing,Lender must obtain from Borrower and Operating Company: (1) Ownership—Evidence that ownership and management have not changed without Lender's approval since the application was submitted. 3. Operating Information Prior to any disbursement of Loan proceeds,Lender must obtain: a. Verification of Financial Information--Lender must submit IRS Form 4506-T(SBA version)to the Internal Revenue Service to obtain federal income tax information on Borrower,or the Operating Company if the Borrower is an EPC,for the last 3 years(unless Borrower or Operating Company is a start-up business). If the business has been operating for less than 3 years,lender must obtain the information for all years in operation. This requirement does not include tax information for the most recent fiscal year if the fiscal year-end is within 6 months of the date SBA received the application. Lender must compare the tax data received from the IRS with the financial data or tax returns submitted with the Loan application,and relied upon in approving the Loan. Borrower must resolve any significant differences to the satisfaction of Lender and SBA. Failure to resolve differences may result in cancellation of the Loan. If the Loan involves a change of ownership,Lender must verify financial information provided by the seller of the business in the same manner as above. If Lender does not receive a response from the IRS or copy of the tax transcript within 10 business days of submitting the IRS Form 4506-T,then Lender may close and disburse the loan provided that Lender sends a second request following precisely the procedures detailed in SOP 50-10(5)and Lender performs the verification and resolves any significant differences discovered,even if the Loan is fully disbursed. b. Authority to Conduct Business—Evidence that the Borrower has an Employer Identification Number and all insurance,licenses, permits and other approvals necessary to lawfully operate the business. c. Flood Hazard Determination—A completed Standard Flood Hazard Determination (FEMA Form 81-93). d. Lease—Current lease(s)on all business premises where collateral is located with term, including options,at least as long as the term of the Loan. 4. Injection Lender must obtain evidence that prior to disbursement a. Cash Injection—At least$194,762.00 cash has been injected into the business as equity capital.This cash is for Furniture,fixtures,equipment,working capital and closing costs. 5. Certifications and Agreements a. Prior to disbursement,Lender must require Borrower to certify that: SBA Loan Number: 46085150-09 page 8 SBA Loan Name: Peril Diagnostics, Inc. (7a Wizard 2009.4) (1) Receipt of Authorization—Borrower has received a copy of this Authorization from Lender,and acknowledges that: (a) The Authorization is not a commitment by Lender to make a loan to Borrower; (b) The Authorization is between Lender and SBA and creates no third party rights or benefits to Borrower; (c) The Note will require Borrower to give Lender prior notice of intent to prepay. (d) If Borrower defaults on Loan, SBA may be required to pay Lender under the SBA guarantee. SBA may then seek recovery of these funds from Borrower. Under SBA regulations, 13 CFR Part 101, Borrower may not claim or assert against SBA any immunities or defenses available under local law to defeat, modify or otherwise limit Borrower's obligation to repay to SBA any funds advanced by Lender to Borrower. (e) Payments by SBA to Lender under SBA's guarantee will not apply to the Loan account of Borrower,or diminish the indebtedness of Borrower under the Note or the obligations of any personal guarantor of the Note. (2) Child Support—No principal who owns at least 50%of the ownership or voting interest of the company is delinquent more than 60 days under the terms of any(a) administrative order,(b)court order,or(c)repayment agreement requiring payment of child support. (3) Current Taxes--Borrower is current on all federal,state,and local taxes, including but not limited to income taxes,payroll taxes,real estate taxes,and sales taxes. (4) Environmental—For any real estate pledged as collateral for the Loan or where the Borrower is conducting business operations(collectively"the Property"): (a) At the time Borrower submitted the Loan application,Borrower was in compliance with all local,state,and federal environmental laws and regulations pertaining to reporting or clean-up of any hazardous substance,hazardous waste, petroleum product,or any other pollutant regulated by state or federal law as hazardous to the environment(Contaminant),and regarding any permits needed for the creation,storage,transportation or disposal of any Contaminant; (b) Borrower will continue to comply with these laws and regulations; (c) Borrower,and all of its principals,has no knowledge of the actual or potential existence of any Contaminant that exists on,at,or under the Property, including groundwater,other than what was disclosed in connection with the Environmental Investigation of the Property; (d) Until full repayment of the Loan,Borrower will promptly notify Lender and SBA if it knows or suspects that there has been,or may have been,a release of Contaminant in,at,or under the Property, including groundwater,or if Borrower or such Property are subject to any investigation or enforcement action by any federal,state,or local environmental agency(Agency)pertaining to any Contaminant on,at,or under such Property, including groundwater; (e) As to any Property owned by Borrower,Borrower indemnifies,and agrees to defend and hold harmless,Lender and SBA,and any assigns or successors in interest which take title to the Property, from and against all liabilities,damages, fees,penalties or losses arising out of any demand,claim or suit by any Agency or any other party relating to any Contaminant found on,at,or under the Property, including groundwater, regardless of whether such Contaminant resulted from Borrower's operations. (Lender or SBA may require Borrower to execute a separate indemnification agreement). SBA Loan Number: 46085150-09 Page 9 SBA Loan Name: Perll Diagnostics, Inc, (7a Wizard 2009.4) b. Prior to disbursement,Lender must require Borrower to certify that it will: (t) Reimbursable Expenses--Reimburse Lender for expenses incurred'in the malong and administration of the Loan. (2) Books;.Records,and-Reports- (u) Keep proper books of account:in a manner satisfactory to Lender, (b) Furnish year=end stateimiits to Lender within 120 Gays of fiscal yew end; (c) Furnish additional financial statements.or reports:whenever Lender requests. thern; (d) Allow Lender or SBA;atBoiro*er's expetwc,,to: (l). Inspect and mull tbooks,secord9 and papers.retating to Borrower's financial or business condition;and [2] hwpeet and'appraise any of Borrower's andwi and All ` IF goveriitnct authorities to:.t. ish reports^ofexaminaZions,or any records pertait►itrg to$orrower,upon_request:by i;ertdex or SBA, (3) Equat Opportun ty6--Pose.9BA-.Porm 7222,:,itquai Opportunity Foster,,where it is clearly viaible.to>emptoyees,applicants for etnpIoyment.arirt:the general'public. (l.) American-mide Products--To the Wedt:prWicttbla,purchase only American-made equipment and products with-the proceeds of the Loin. (3) Taxes--Pay all federal;state, and-local tastes,includin g incorne,payroll,real estate mid sales taxes of the business when they corne'due. c. Lender must require Borrower to certify that.it will.not,without Lender's prior written consent- (1) Distribution�M.ke any-distribution of.company assets that will adversely affect the financial-condition of Borrower. (2) OwnersIdp Changes=Change:the ownership structure or interests in the business during tho.terni of the Loan. (3) Transfer of., ell-,lease,;pledge,encurnber,(except by purchase money liens on property acquired after:the date of the Note),.or otherwise dispose of any of Borrower's property or assets,except in.the ordinary course of business. ADMINISTRATOR SMALL.BUSINESS ADMINISTRATION March 30,201 I Sy: Lynn G'..O ,F.xCe vice Date a Preferred rider as der 4tn an agent of and on behalf of the SBA for.the propose of executing t is Au Lion. SI3A Loran Number: 46085150-09 Page 10 SBA Loan Name: Peril aagnostics, Inc. (?a Wizard 2009.4) Exhibit tAfi 1?)IT Loan No. 10009274530 Approved Commercial Loan 5/11/2011 $450,000.00 First 6 months interest only 6/11/2011 $2,250.00 First 6 months interest only 7/11/2011 $2,250.00 First 6 months interest only 8/11/2011 $2,250.00 First 6 months interest only 9/11/2011 $2,250.00 First 6 months interest only 10/11/2011 $2,250.00 First 6 months interest only 11/11/2011 $2,250.00 Payments Made 12/01/2011 $5,188.27 Payments Made 1/03/2012 $5,188.27 Payments Made 2/01/2012 $5,188.27 Payments Made 3/13/2012 $5,188.29 Payments Made 4/04/2012 $5,188.29 Payments Made 5/15/2012 $5,188.40 Please see the email to the bank which 6/01/2012 states, that we will pay down the loan with the sale Of 7/01/2012 our property in Danville,PA Payments Made 8/09/2012 $5,188.40 Payments Made 9/13/2012 $5,188.40 Pre-Payment of Loan— 10/04/2012 $133,705.99 Notice received from bank for full payment of both 11/26/2012 loans, (1828 unread) - nnawaot ,perlldiagnostics.corn - Yahoo! Mail f ' Page 1 of 1 EA"1517 G Rosemary Dente(rosemary dente(gsusquehanna ne Search Web Nava INBOX CONTACTS SEARCH:Rosemary... SBA Loan#"085150 Compose Delete Move Actions tnbox(999+) SBA Loan Al 4608515009 from Nava Nawaz to 1 recipient Jun 25,2012 Drafts(268) Sent Hi Rosemary, Spam(278) Thank you for talking to me on the phone about the monthly installment of the SBA loan#4608515009.1 Trash(18) appreciate you letting me explain.We have no money now to pay the monthly installment.We are selling FOLDERS 1. our property,21 Erin Drive, Danville, PA 17821 which the buyers will acquire in August 2012.The proceeds of the property sale will go towards paying down the loan. Please feel free to contact me with any APPLICATIONS questions. Regards, Nava Nava Nawaz,M.D.,F.C.A.P. President and Laboratory Director Peril Diagnostics,Inc. 5010 Ritter Road,Suite 104 Mechanicsburg, PA17055 Ph:717-691-5888 Cell:570-394-2776 Fax:717-691-5551 E-mail: nnawaz perlldiaanostics.com Website: http://www.perlldiagnostics.com/ http://us.mg5.mail.yahoo.com/neo/launch 3/25/2013 lbrT � OMB Approval No 2502-0285 W/ -1,4H 0 i A.Sett;ement Statement (HUD-1) t Q rttA 2.0 RMS 3.13 Corn.Unms S.F8s Ntrrnbar 7 Loan Number 8.Mortgage Insurance Case Number 4.0 VA 5.0 Conv.Ins f22swti - 30236diQOt11 C.NOW This form is fumiahad to give you s statement of acblat settlement cosh.Amounts paid to and by the settlament agent are shown,items marked '(p.o c.y were pad outside the dosing:they are shown hers for inifornabon it purposes xtd are not included in the toht► D Name d Address of Borrower E.Name It Address of S e W. 7 F.N S Address of t.ertder Ashok Sharstuha ll d 041tatt 571ah Naysi�!#tries d h�ttlt 1r�Nrtiatl� Cevd Qt1t 8r 21 EM DOW " + * a 3RI4Yt�tdpYdEake 1 Danwiir,PA 1782T - K, G.Property Location: N.Settlement Agent 1.Settlement tip 2d$f`' 211 Erin Dtitiit Darwllt► t)aofgEQIW .' Piece of rnank h a .,.. " Mahonin¢7>»arnittptiyadotarCorntiE'" 7itSfiM ►nP1�t7b ``=' latetri11t5ret3�rYytGs� xd 2,l90h1iRit, t 100.Gron Amount Due from Borrower -� 401L Grose Amount Due to Salver 101 Contract sales price fl001k 401.Contract sates price (30600000 _ _ 102 Persons!Property - Y_ �. - =. 402 Personal Property 103 Settlement charges ro borrower(hie 1400} #4,624.77 1403 i1 z.v 1404. 105 _ 406-_ . Adjustments for items peW by seller in advance AdjusbnaNs for ttem_s paid by sa ter to advance ADS.Cityrtown taxes 1014112 to 12131!12 S 384.11 406_City/to o taxes 10/4112 to 12131112 #361111 107.School texas 1014112 to 8130113 52,52648 407.School Was 1014112 to SWM3 #2,526.66 108 Assessments to __ $ 0.00 406.Assessments to 5 0.00 104 Retyping 1014!12 to 12/31/12 5 3.21 409.Recycling 1014112 to 19/31/12 $ 3621 110 1i1. 112. '412. F13. 120.Gras,Amount Quo from Bofrateer 15517.52175 1420.Grose Amount Darr l0 3e9u 3507,846.46 200.Amount PaW by or in Behnlf of Borrotvar 600.Reductions to Arnow*Orris to Seger. _201 Deposits or earnest mane t� ----- ---_- r.X000. 5011.Excess deposit(see it sf e+y _ 202 Peinapa one of now loans} 4!31 0 .. 502.Settterrwrt charges to leper(Ipte 14400) 54,756,00 203.Existing loan($)taken subjed to _ rr ," 503.EXtftifp taatt(a)tallest subject to t hall 9113/12 204. __ _. 504.Fkat mortgage lace tar dim 4x13112 to I011tkt2 505.R 205. 206. ay do+sn of Susqueharma Belt mtp. 207 507. (Loan#100042745301 SBA#4808615009) j32t7t)d 208 209. 509.PaVO cashiers died;and overnight ice(3) 150 Adjustments for items unpaid by sailer Adjustments foe items unpaid by sWw 210 Cityrtowntaxes to 3 0.00 510.C41towataxes 01101/12 to 12/31112 1,517.90 211 County taxes to # 0.00 511.County taxes to 212.Assessments to I S 0-00 512.Assessments to # Q00 .2131. to 3 0.00 513.Schooltaxes 07/01112 to 08130/12 3.415.67 514.Racydn 01101112 to 12/311112 i.1 215- - 515 Wow d Sewer to 61=12 79:i 216. - - i Sts.Waeet 5 Sewer(escrow) 07/01/12 to 101(4112' 217 258. i 518. 219. _ __.L ;519. 220.Total Paid byBor Borrower 5424,(00.00 sea total Reduction Amount Duo Sailer $507,896-961 300.Cash at Sett'h_mertt I tardto BorroerN e00.Cash at settlement tooron SOON _ 301 Gross amount due from borrower Iline 120) 5517 323 75 '601 Gross amount due to Sol pine 420) 5507.896 98 302 Less amounts paid byltor borrows►(line 220) 5424,00000 ;602 Less redlicb�in amount duo se8e("520) 1 5607,896-98 303.Cash Xittarn ItoBerrcwar 593.523.75E 801 Casts rite Xlfrarn$,tier # 0.(Xli The Public Reporting Burden for this correction of information to e$tiMXted at 35 minutes per response for collecting,revie",and repo"the data.This agency may not tolled this information, and you are not required to complete this fam,unless 4 displays a curently valid OMS control number. No contident)siity is assured;this disclosure is mandatory.This is designed to provde the parties to a RESPA covered transaction with information during the settlement process All vie be held by settlement agent to be used as noted.Unused funds will be paid to Susquehanna Bank to be applied on loam*noted on tine 507. r g Susquehianna F l Susquehanna Bancshares,Inc. 1925 Good Hope Road Encla,PA 17025 i VIA 1sr CLASS MAIL AND CERTIFIED MAIL RETURN RECEIPT REQUESTED November 26, 2012 91 7399 9991, 7030 6665 8986 Peril Diagnostics, Inc. /Nava K. Nawaz,Guarantor Malik M. Nawaz,Guarantor 6353 Galleon Drive l Mechanicsburg, PA 17050 j i l Re: Loans In Original Principal Amounts of$450,000.00, and $250,000.00 By Susquehanna Bank, To Peril Diagnostics Inc Dear Ms. Nawaz: This letter is directed to you as an officer of Peril Diagnostics, Inc., and as a .guarantor of the above captioned loans. Susquehanna Bank, (the "Lender") made loans to you Jn the original principal amounts of Four Hundred Fifty Thousand Dollars ($450,000.00), and Two Hundred Fifty Thousand Dollars ($250,000.00), respectively. The loan in the original principal amount of $450,000.00 evidenced by an SBA Note and two mortgages dated May 11', 2011, and various documents relating thereto or executed in connection therewith (collectivel)y, the"Loan 1 Documents*), i The roan in the original principal amount of $250,000.00 evidenced by a i Promissory Note and two Mortgages, dated October 27, 2011 and various documents relating thereto or executed in connection therewith (collectively, the "Loan 2 Documents"). The Loan 1 and Loan 2 Documents shall be referred to collectively as the 'Loan Documents" between Peru Diagnostics, Inc., as borrower and Susquehanna Bank, as lender. You are in default on Loan 1 under the Loan Documents because you failed to I make payments when and as due under the terms thereof on August 1, 2012 through November 1, 2012. Consequently, the Lender has exercised its right to declare all amounts outstanding under the Loan Documents to be immediately due and payable. T he Borrowees obligations to the Lender under the Loan Documents on Loan 2 are due and payable on demand by the Lender whether or not the Borrower is in default. Moreover, the Borrower is in default under the Loan Documents due to its failure to f Peril Diagnostics, )nc. Nava K. Nawaz, Guarantor Malik M. NaWaz, Guarantor November 26, 2012 Page 2 make payments when and as due under the Loan Documents. Accordingly, the Lender demands that the Borrower pay its obligatio' ns under the Loan Documents immediately. As of November 26, 2012, the balance outstanding under the Loan I Loan Documents is $305,554,68. Interest accrues on the unpaid principal balance at the rate of $49.35 per,day after November 26, 2012. In addition to the above amounts, you are obligated to pay all reasonable attorneys' fees and expenses incurred by the Lender in enforcing the Loan I Documents. As of November 26, 2012, the balance outstanding under the Loan 2 Loan Documents is $252,816.97. Interest accrues on the unpaid principal balance at the rate of $41.67 per day after November 26, 2012. In addition to the above amounts, you are II obligated to pay all reasonable attorneys' fees and expenses incurred by the Lender in enforcing the Loan 2 Documents. The Lender hereby demands thk you pay the amounts set forth by certified check, cashier's check or wire transfer by Tuesday, December 11, 2012.- Funds should be directed to Susquehanna Bank, 1826 Good Hope Road, Enola, PA 17025,Attn: Lisa Painter. Furthermore, liquidation of the collateral, Including real property commonly known as 6363 Galleon Drive, Mechanicsburg, PA 17050 and 11922 Bates Court, Oreland Park, IL may take place. Nothing in this letter should be deemed an agreement by the Lender to forbear From enforcing any rights or remedies available to A under the Loan Documents or applicable law. The Lender reserves all of its available rights and remedies. Moreover, acceptance by the Lender of payment of less than the full amount due under the Loan Documents shall not constitute a waiver of the demand for payment of all amounts due, or any of the rights available to the Lender under the Loan Documents or applicable law, Susquehanna Bank Lisa Painter VP, Loan Workout Officer OREO/Workout Department Phone: (717) 724-4605 fib PR T Irk G ;:; Malik M. Nawaz&Nava K. Nawaz(Prose) X013 APR -9 PM 1: 3 Peril Diagnostics, Inc, CUMBERLAND CGL=�4,r�':r 5010 Ritter Road,Ste 104 PENNSYLVANIA' Mechanicsburg,PA 17055 Telephone(570)394-2776 (PROSE) SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V, PERLL DIAGNOSTICS, INC. CIVIL ACTION -LAW Defendant No. Is —I r� ' Civil CERTIFICATE OF SERVICE This is to certify that the documents of petition to open Judgment have been served to the attorney's office at BARLEY SNYDER,William F.Colby,Jr. Esquire, Keith Mooney, Esquire,Court ID No.46880;206319,50 North Fifth Street, P.O. Box 942, Reading, PA 190603 by certified mail,US Postal Service Article No. 7012 3460 0002 1542 5981. It was received&signed by L.Woomer at Barley Snyder on April 5,2013. A copy of the return receipt is attached exhibit"A". Respectfully Submitted GYnal�i.�.6-M, Malik M. Nawaz & Nava K. Nawaz Defendant(Prose) i • Complete items 1,2,and 3.Also oMMMM A. t3sOnatun, � item 4 If Restricted Delivery Is deeired. X 0 Age • Print your name and address on there O0� 0 Addressee so that we can return the card to you. ed (prt,� ) C. Date of Delivery ! • Attach this card to the back of the mailp , e or on the front if space permits. 1. Article Addressed to: D. le dellve yadd ess different from item 1? M Ye if YES,eMer delivery address below: 0 No BARLEY ShtY D�� f. o . 5oX 942 c s. e,vpe gegtsMall D 6cpr6ss Mall rsd O Rot"Receipt for Mercharidise' E]Inwrod'Mail O G.O.D. 4. Restricted DeIWW Oft Fee) C l Yes 2. Mar AeiIrftm 7012 3460 0002 1542 5981 (7Yensrer from aarv/oe tats i Ps Form 3811,February 2004 t Domestic Retum Receipt 102595-02-M-1640 UNITED STATES POSTAL SERVICE First-Class Mail Postage&Fees Paid USPS Permit No.G-10 g •Sender: Please print your name, address, and ZIP+4 in this box • /WA L afK M NOM 2 d 051 &AL1,Eo N pf N So�Nlcs te PA po50 ME { I = �t-F I SUSQUEHANNA BANK, Plaintiff v. IN THE COURT OF COMMON PLEAS OF THE NINTH JUDICIAL DISTRICT PERLL DIAGNOSTICS, INC., Defendant 2013-01321 CIVIL TERM IN RE: PETITION TO OPEN ! RELIEF OF JUDGMENT ORDER OF COURT AND NOW, this 11th day of April 2013, upon consideration of the Petition to Open J Relief of Judgement [sic], a Rule is issued upon Plaintiff to show cause why the relief requested should not be granted. DEFENDANT shall serve this petition and Order of Court upon Plaintiff. RULE RETURNABLE twenty (20) days from the date of service by Defendant. BY THE COURT, Thomas A. Placey C.P.J. Distribution: Malik M. Nawaz ✓ Nava K. Nawaz � William F. Colby, Esq. ' C7 Z4 . lew 411x1,3 Ap -* Li E a=`iLED—OFFICE OF THE RROTHON'OTARYt' 2613 APR 26 01 9: 57 CUMBERLAND COUNTY PENNSYLVANIA SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 206319 50 North Fifth Street, P.O. Box 942 Reading, PA 19603-0942 (610) 376-6651 Attorney for Plaintiff SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION—LAW PERLL DIAGNOSTICS, INC. Defendant No. 13-1321 RESPONSE TO DEFENDANT'S PETITION TO OPEN/RELIEF OF JUDGMENT AND NOW, the Plaintiff, Susquehanna Bank,by and through its attorneys, Barley Snyder LLP, files the following response to Defendant's Petition to Open/Relief of Judgment and states as follows: 1. It is admitted that the Plaintiff made a loan in the amount of Four Hundred Fifty Thousand Dollars ($450,000.00) to Defendant on May 11, 2011. 2. It is admitted that the Defendant made monthly payments pursuant to the terms and conditions of the Note until the payment due and owing on August 1, 2012. Defendant's payment history is attached hereto as exhibit "A". 3. It is admitted that on or about June 25, 2012, the Defendant sent an e-mail to the Plaintiff in which its intent to sell a property and utilize the proceeds from that sale to "paying down the loan" on SBA loan#4608515009. 3916459-1 1 4. It is admitted that on or about October 5, 2012, that the Plaintiff received a payment pursuant to the Note in the amount of One Hundred Thirty-three Thousand Seven Hundred Five and 99/100 Dollars $133,705.99, and that said amount was in excess of the required monthly installment as set forth in the Note. 5. Denied. Defendant's payment of One Hundred Thirty-three Thousand-Seven - Hundred Five and 99/100 Dollars $133,705.99, was applied to its account as specified in the Note as follows: "Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due."Furthermore, this was explained to Defendant in an e-mail dated June 27, 2012, in response to his Exhibit"C" and attached hereto as Exhibit`B" and again on August 6, 2012 in an e-mail attached hereto as Exhibit "C". 6. Denied. The Defendant is clearly in default pursuant to the terms and conditions of the Note as set forth in Paragraph 5 above for failing to make payments pursuant with the terms and condition of the Note beginning on November 1, 2012, and monthly thereafter. WHEREFORE, Plaintiff/Respondent request that Defendant/Petitioner's Petition to Open/Relief of Judgment be denied. BARLEY SNYDER By: William F. Colby, Jr., Esquire Keith Mooney, Esquire Attorneys for Plaintiff 3916459-1 3 EXHIBIT "A" �a Peril Diagnostics-Loan Number 10009274530 Original Loan Amount$450,000.00 Date paid/adv Advance Mo Pmt Paid Payment Amt 5/25/2011 $134,532.64 6/1/2011 6/1/2011 $350.94 6/13/2011 $40,000.00 6/27/2011 $50,000.00 7/1/2011 7/1/2011 $350.94 7/5/2011 $75,000.00 7/13/2011 $40,000.00 7/15/2011 $15,000.00 7/26/2011 $20,467.36 8/1/2011 8/1/2011 $2,160.36 9/1/2011 9/1/2011 $2,267.06 10/3/2011 10/1/2011 $2,250.00 11/4/2011 11/1/2011 $2,250.00 12/1/2011 12/1/2011 $5,188.27 1/3/2012 1/1/2012 $5,188.27 2/1/2012 2/1/2012 $5,188.29 3/13/2012 3/1/2012 $5,188.29 4/4/2012 4/1/2012 $5,188.29 5/15/2012 5/1/2012 $5,188.40 8/9/2012 6/1/2012 $5,188.40 9/13/2012 7/1/2012 $5,188.40 10/5/2012 Princ Pmt $133,705.99 Proceeds from sale 10/1612012 Princ Pmt $3,248.59 Escrow funds from sale 10/30/2012 Princ Pmt $125.00 Escrow funds from sale Demand letter sent 11/26/12-Loan in Default Loan past due for 8/1/2012 pmt EXHIBIT "B" E Lisa Painter From: Rosemary Dente Sent: Wednesday,June 27,2012 8:38 AM To: 'Nava Nawaz' Subject: past due account June 1-Peril Diagnostics Hi Nava, Thanks for discussing your business and loan situation during our conversation Tues June 26. As discussed: 1. If/when you obtain an executed contract of sale on the Danville property,(August anticipated)you will forward that to me.The bank will order an appraisal and be involved in the process as all cash proceeds will be paid to the bank at settlement.Pay down of a loan pays down principal only,not interest and does not replace regular monthly payments. 2. To avoid 60 day late status,which is an event of default,you will try to make a payment in next few weeks and keep the loan from default 1 You are working toward resolving the inability of the billing company you hired to collect on your A/R,thus affecting your cash flow.Please let me know when you have resolved this and are moving toward collecting the $100k pending since you feel this is the obstacle right now,not the viability of the business model. I appreciate your statement that you understand the gravity of the situation.It's important that you recognize that the SBA loans you have are granted under the U.S.Federal Goverrnttent loan program and the bank is governed by rules and regulations as well to administer the loan and it's servicing according to the terms and conditions of the Note and it's requirements. Thanks so much and have a great day. Rosemary Rosemary Dente Vice President SBA Business Banker,NJ SBA Government Lending Susquehanna Bank 2120 Meetinghouse Rd,Cinnaminson,NJ 08077-33271 Maiicode:207-ADMIN Tel:609.332.2269 i Fax:856.786.8527 1 Cell:609.332.2269 Rosemary.Denteiibsusouehanna net I Web:www.susguehanna.net Connectwith us: Facebook I Twitter I You Tube 181_go Cor:5:ienUaMy Not!xi: This=_-n?aii is intended for the use of the i;idi}:iduri or enVv to`.rhici-,it.is addressed,and may conlain:ntarrnaiion',hrai is prii:;;n�;�_d,con`iC nti2L.and axentpt fr�rn e±isansure u!.der a!;.i.icatbie 12`h' It you hsvr vect^vt:;d this r,ornnionicaticn in error:pease noisily me irn!redi3:it:;at i?e ab eve-,honp number or e=inai!a ddreas and de:ate.if`.z.riginat nessage.Thank you. S .t :a C }'. re f Jri 1 " Finao jai SC-*vjCB£: "Hn r.,, �• r•� « } .E�,r;r:, r: pn�.}u�!"iCeµrrd:a.;i:_•, o.fzrel thnxrq'�; r,e.Vei Inc.:� :�reC1:.,:;.r:.0 brobr%;-tiler and r r°is:errd etvestr.=nfi uu.:isr_r.M<a r±3ar rrl Ftia 1t�" ;r_n?a'vesi ig not a`i"rted with Susciu;Lzhanna Bancshares,in;.,or its JiaisCi companies&Advis-ry serv,re;.n?ay only he offered by Investment AdWae:r Representatives in connectfan voth an appropnala PrimeVest Advisory Service-a Ayreernent and disdosure brochure a>provided'.securities and.11 surance products ere:Not a deposit•Na"t F IDIC insu r l' Nut insured by any Pecteral gove nirnt nt agency'Not bank guaranteed`May lose value. From:Nava Nawaz imailto:nnawazCilperlldiagnostics.coml Sent:Monday,June 25,2012 1:13 PM To:Rosemary Dents Subject:SBA Loan#4608515009 Hi Rosemary, t Thank you for talking to me on the phone about the monthly installment of the SBA loan# 4608515009. 1 appreciate you letting me explain.We have no money now to pay the monthly installment.We are selling our property, 21 Erin Drive, Danville, PA 17821 which the buyers will acquire in August 2012. The proceeds of the property sale will go towards paying down the loan. Please feel free to contact me with any questions. Regards, Nava Nava Nawaz, M.D., F.C.A.P. President and Laboratory Director Peril Diagnostics, Inc. 5010 Ritter Road, Suite 104 Mechanicsburg, PA17055 Ph: 717-691-5888 Cell: 570-394-2776 Fax: 717-691-5551 E-mail: nnawaz(a)perlldiagnostics.com Website: http://www.perildiagnostics.com/ z EXHIBIT "C" Lisa Painter From: Rosemary Dente Sent: Monday,August 06,2012 10:14 AM To: 'Nava Nawaz(nnawaz @perlldiagnostics.com)' Subject: delinquent account- Peril Diagnostics Hi Nava, Good Morning. Thanks for speaking with me just now. As you know,your term loan account remains delinquent and past due for June 1,July 1 and now Aug.1 You did not make a payment mid July that we discussed during ourJuly 6 meeting. It is my understanding from you today,you will be scanning and sending me a copy of an executed Contract of sale for the Erin Drive,Danville property.The sale price is$505,000.00 and the buyer has obtained financing.You will provide me a copy of that if you can,as well as the contact information of your representative who will be coordinating the legalities of the closing to payoff the liens associated,clear title,etc. You will also be sending me a letter today re this sale and your plans for your account(both term and ELOC)with us. I understand you have negotiated for the equipment leasing company to reduce your payments in half yet leave all the equipment at your business retroactive to May 1. I also understand you have made the decision to eliminate the billing company and take the billing in house eff.Aug.1 As discussed today and in our meeting July 5 and the prior conversation,a sale of assets does not substitute for a principal and interest payment.Proceeds from assets pays down principal on the loan that has the 1't priority position,in your case,the term loan. At 60 days delinquent,the loan is an event of default(which you are in)and at 90 days,it goes into liquidation status. These are the policies of the US Federal Government's Small Business Administration program. Our concern continues to be viability of the business and it's ability to generate revenue that allows for paying of its bills. We are hopeful you can catch up and then make our payments as scheduled and move in a positive direction. I'll be looking for the above-mentioned paperwork. Thanks so much Nava. Rosemary Rosemary Dente Vice President SBA Business Banker NJ SBA Government Lending Susquehanna Bank 2120 Meetinghouse Rd,Cinnaminson,NJ 08077-33271 Mailcode:207-ADMIN Tel:609.332,2269 1 Fax:856.786.8527 1 Cell:609.332.2269 Rosemary.Dente susquehanna.net I Web:www.susquehanna.net Connect with us: Facebook I Twitter I YouTube I Blo Cnr sidaznli�tity;•tpticr,--. :his a-ma€?io ^:::ndeJ rcr the ufi�a`the irid:�d::al nr en5iv to v°hich it is ac�dreasec?,and mays cv;ttzn i^',rcr::aiibn••.hat?s p%Fglla!j�f!;a,�•rn5 Wc:raial.;anti exe;nhl fa3m disclosure i,nxe:r e,irlic;ihlr•_*+ex. it gru hae'e:an-:iJad t,:is.t:ornsii:cri,atica� n error,�lepfs notity mFa !mrnr.4J!2rf_iy«,the aocve:,hone nuruber o:c--rriaii a ±s-.;and de5ete the origin.-1 message.Ti anx you. Securities at in umnos F:ririu:s are offered thrvui";;ime-Vest Fir:a:teal Setvicoq,Inc.,a registersd bmkeddeafer f?nd r'egisterLd.r,v§ailment act.,er.Memi er�INRA!SIP:..f"rf!!) l;est is ftCt e#hated wilt?Su cu°.hanna Sltnwsha.es !rc-.Or its related cum paai`IES.A,dv"!5ory serv;ces m^ry nnly re c'ferei by Investmeni Adviser in corm=;ti,r:vvith ar!anpropr;sie Pn-m:Ve.;t Advisci-y Services.z gre8rielu area 1 VERIFICATION Lisa Painter verifies that she is the Loan Workout Officer of Susquehanna Bank, Plaintiff in the within matter,that she is authorized to execute this Verification on its behalf, and that the facts set forth in the within Response to Defendant's Petition to Open/Relief of Judgment are true and correct to the best of her knowledge, information and belief. She understands that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unswom falsification to authorities. Date: 4b2 a Al Lisa Painter BARLEY SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 206319 50 North Fifth Street, P.O. Box 942 Reading, PA 19603-0942 (610) 376-6651 Attorney for Plaintiff SUSQUEHANNA BANK, COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION-LAW PERLL DIAGNOSTICS, INC. Defendant No. 13-1321 CERTIFICATE OF SERVICE 1, Keith Mooney, Attorney for Plaintiff,verifies that a true and correct copy of Plaintiff s Reply to Defendant's Petition to Open/Relief of Judgment has been mailed to Per1l Diagnostics, Inc.,Defendant, at 5010 Ritter Road, Suite 204,Mechanicsburg, PA 17055,by first class mail, postage prepaid, on the.954-day of April, 2013. BARLEY SNYDER By: -5& Keith Mooney, Esquire Attorneys for Plaintiff 3916459-1 3