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HomeMy WebLinkAbout13-3976 INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA V. NO. i3 -vQ C -- e� Z; --1, M r -_ HUGHES CONTRACTING, INC. and `_cam --�'T-' ROBERT D. HUGHES, Defendants : CIVIL ACTION - LAW' -: C - rep CD 2 CONFESSION OF JUDGMENT Pursuant to the authority contained in the Note attached as Exhibit A to the Complaint and pursuant to the authority contained in the Guaranty attached as Exhibit B to the Complaint filed in the above captioned case, we appear for Defendants, Hughes Contracting, Inc. and Robert D. Hughes, jointly and severally, and confess judgment against them in. favor of Plaintiff, Integrity Bank, as follows: Principal: $ 46,816.99 Accrued Interest: $ 527.35 Late Fees $ 15.65 Attorney's Fees (10% commission): $ 4,734.43 Total: $52,094.42* *along with interest accruing at the current per diem rate of $6.502359722 from July 1, 2013 until paid in full, plus costs (the "Indebtedness "). McNEES WALLACE & NURICK LLC Date: July 8, 2013 By Clayton W. Davidson PA Attorney I.D. No. 79139 McNees Wallace & Nurick LLC 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108 -1166 (717) 260 -1678 (Direct Fax) (717) 232 -8000 (Phone) cdavidsongmwn.corn Attorneys for Plaintiff, Integrity Bank $ 410, pb PA Atom Y ol i b a67 �� Inai�ec( Clayton W. Davidson PA Attorney I.D. No. 79139 McNees Wallace & Nurick LLC 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108 -1166 (717) 260 -1678 (Direct Fax) (717) 232 -8000 (Phone) cdavidson(a,mwn.com Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA J HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, Defendants : CIVIL ACTION - LAW COMPLAINT FOR CONFESSION OF JUDGMENT Plaintiff, Integrity Bank, by and through its undersigned counsel, hereby files this Complaint for Confession of Judgment pursuant to Pa.R.C.P. No. 2951(b) and in support thereof avers the following: 1. Plaintiff, Integrity Bank (the "Bank "), is a Pennsylvania banking institution with its principal place of business at 3345 Market Street, Camp Hill, Pennsylvania 17011. 2. Defendant, Hughes Contracting, Inc. (the "Borrower "), is a Pennsylvania corporation with a business address at 14 Cardinal Drive, Carlisle, PA 17013 -4309. 3. Defendant, Robert D. Hughes, is an adult individual with a last known address at 595 Mountain Road, Boiling Springs, PA 17007. 4. On April 27, 2009, the Bank loaned the Borrower $50,000.00 (the "Loan") for a business purpose as evidenced by a Promissory Note as modified from time to time (the "Note "). Attached hereto as Exhibit A and incorporated herein by reference is a true and correct copy of the Note (less any applicable tax identification numbers). 5. The indebtedness evidenced by the Note was guaranteed by the Robert D. Hughes (the "Guarantor ") pursuant to a Commercial Guaranty (the "Guaranty ") executed by the Guarantor in favor of the Lender. Attached hereto as Exhibit B and incorporated herein by reference is a true and correct copy of the Guaranty. 6. Borrower has defaulted under the Note by failing to make the payments when due thereunder since on or before May 25, 2013. 7. The Note provides that Lender may confess judgment against the Borrower after a default thereunder for the entire principal balance due and owing under the Loan along with accrued interest, late fees, costs of suit and an attorney's commission of 10% of the unpaid principal balance and accrued interest. 8. The Guaranty provides that Lender may confess judgment against the Guarantor at any time after the amounts thereunder become due for the entire principal balance due and owing under the Loan along with accrued interest, late fees, costs of suit and an attorney's commission of 10% of the unpaid principal balance and accrued interest. 9. The total sum due and owing under the Note and the Guaranty, as of July 1, 2013, is itemized as follows: Principal: $ 46,816.99 Accrued Interest: $ 527.35 Late Fees $ 15.65 Attorney's Fees 00% commission): $ 4,734.43 Total: $52,094.42* *along with interest accruing at the current per diem rate of $6.502359722 from July 1, 2013 until paid in full, plus costs (the "Indebtedness "). 10. All conditions precedent have been satisfied to allow the Bank to confess judgment against the Borrower under the Note and against the Guarantor under the Guaranty. 11. The Bank is the holder of the Note and the Guaranty. 12. The Note and the Guaranty were executed and delivered in connection with a business transaction and judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 13. Judgment has not been confessed or entered under the Note in any other jurisdiction. 14. The 10% attorney's fee commission included in the confessed judgment is authorized under the Note and the Guaranty and said percentage is being used to calculate a sum certain for purposes of confessing judgment; however, the Bank will only seek and recover its actual and reasonable attorney's fees for costs of collection in this matter. WHEREFORE, Plaintiff, Integrity Bank, hereby requests this Court to enter judgment by confession against Hughes Contracting, Inc. and Robert D. Hughes, jointly and severally, in the amount of $52,094.42 along with interest accruing at the per diem rate of $6.502359722 from July 1, 2013 until paid in full, plus costs. McNEES WALLACE & NURICK LLC Date: July 8, 2013 By Clayton W. Efavidson PA Attorney I.D. No. 79139 McNees Wallace & Nurick LLC 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108 -1166 (717) 260 -1678 (Direct Fax) (717) 232 -8000 (Phone) cdavidsonkmwn.com Attorneys for Plaintiff, Integrity Bank VERIFICATION I, John Havas, Vice President of Integrity Bank, verify that I am authorized to make this verification on behalf of Integrity Bank, and that the facts contained in the foregoing Complaint for Confession of Judgment are true and correct to the best of my knowledge, information and belief and that the same are made subject to the penalties of 18 Pa. C.S.A. § 4904 relating to unsworn falsification to authorities. - 7kv ohn H as, Vice President i .. _ y � f � �' I __ ' _ .. ..._ .. I DEMAND PROMISSORY NOTE Borroww. Hughes ContareeftInc. Lender. Integrity Bank 14 Cardinal Drive Camp Hill ORk e Carlisle, PA 17015 3345 Market Street Camp Hill, PA 17011 (717)820 -4900 Principal Amount: $50,000.00 Interest Rate: 5.00% Data of Note: April 27, 2009 PROMISE TO PAY. Hughes Contradtag, Inc. ('Borrower) promisee to pay to integrity Bank ("Londar'), or order, in lawful money of the United States of America, ON DEMAND, the principal amount of Fifty Tlsausend A 001100 Dollars ($60,000.00) or so much as may be outstanding together with Interest on the unpaid outstanding principal balance of each advance. Intel nawt shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full Immediately upon Lenders demand. Until demand Is made. Borrower will pay regular monthly payments of all socrued unpaid fatennt due as of each payment date, beginning May 30. 2008, with all subsequent interest payments to be due on the same day of each month thereafter. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest, than to principal, than to any unpaid collection costs, and then to any Iate charges. The annual interest rate for this Note Is computed on a 3851WD basis; that ls, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstanding principal batence, multiplied by the actuuai number of days the principal balance is outstanding. Borrower win pay Lander at Lenders address shown above or at such other place as lender may designate In writing. DEMAND FEATURE. This loan is payable on demand, to be reviewed annually. VARIABLE INTEREST RATE The Interest rate on this Note is su*d to change from time to time based an changes In an Independent bulax which Is the New York Prime Rate of Interest The Now York Prim Rate of Interest shall mean the interest raft per annum announced from time to time in various business Journals, such as The Wall Street Journal, as the 'Prime Rats of Interest.' The New York Prime Rate of interest is an index, and loans of the Bank may be established at above, or below the Index. New York Prone Rate of interest ls not necessarily the Bank's towwast rats of interest. The Interest rate shall that at New York Prone (the 'Index'). The index Is not necessarily the lowest rata charged by tender on Its loans. K the Index becomes unavailable during the term of this loan. Lender may designate a substitute index after notifying the Borrower. Lender will tell Borrower the current index raft upon Borrowers request The Interest rate change will not occur more often then once arch Day. 66rrower understands that tender may make bans based on other rates as well. The index currently Is 3.26% per annum. The Interest raft to be applied to the unpaid principal balance during this Note will be at a rate of 1.00% percentage points over the Index, resulting in an initial rate of 4.26% per annum. There is a floor of 5.00%. NOTICE: Under no circumstances will the Interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender In writing, relieve Borrower of Borrowers obligation tc continue to make payments of accrued unpaid Interest Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked 'paid In full,' Wfhout mcoune,' or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lenders rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lander. All written communications conosming disputed amounts, Including any check or other payments Instrument that Indicates that the payment constitutes 'payment in fuif of the amount owed or that is tendered with other conditions or limitations or as full satisf icdlon of a disputed arnount must be mailed or delivered to: Integrity Bank, Camp Hill Offm, 3345 Market Street. Camp Hill, PA 17011. LATE CHARGES. If a regularly scheduled Interest payment is 10 days or more late, Borrower will be charged 111400% of the regularly scheduled payment or $10.00, whichever is greater. if Lender demands payment of this ban, and Borrower does not pay the loan In full within 10 days after L ander's demand, Bortowar also vAll be charged edict 6.00% of the awn of the unpaid principal plus accrued unpaid Mnteme or $%K whichever Is greater. INTEREST AFTER DEFAULT. If this Note is not paid in fun within 30 days after demand the interest raft on this Note shall be Increased by adding a 5.0096 percentage point margin ('DeSultt Rate Margin'). The Default Rate Margin shall also apply to asch succeeding Interest rate change that would have applied had there been no demand. if Judgment Is entered In connection with this Note, Interest will continue to aoaue after the date of jwfgment at the rate in stied at the time Judgment Is entered. However, In no event wig the interest rate exceed the maximum rrnterest rate limitations under applicable law. LENDER'S RIGHTS. Lender may, at any Ilmo, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEY'S FEES: EXPENSES. Lender may hire ar pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lander that amount This includes, subject to any limits under applicable law, Landers reasonable sttomeys' tees and Lender's legal expenses, whether or not them is a lawsuit, Including reasonable attorneys' teas, expenses for bankruptcy proceedings ¢nciuding efrob to modify or vacads any automatic stay or injunction), and appeals. Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to arty jury trial in any action, proceeding, or courderdelm brought by either Lander or Borrower against each other. DEMAND PROMISSORY NOT"` Loan No. (Continued) Pape 2 GOVERNING LAW. This Note will be governed by the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been sooepted by Lender In the Commonwealth of Pormyhvenle. CHOICE OF VENUE If there Is a lawsuit, Borrower agrees upon Lender's request to submit to the juori of the courts of Cumberland County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $29.00 If Borrower makes a payment on Borrower's loan and the check or pneauthortred charge with which Borrower pays is Istsr dishonored. RIGHT OF SETOFF. Lender reserves a dght of setoff In ail Borrower's accounts with Lender (whether checking, savings, or some other account) This includes all accounts Borrower hokis jointly with someone etas and all smoi nts Borrower may open in the future. However, this does not Include and iRA or Keogh amounts, or any tent accounts forwhich setoff would be prohibited by law. Borrower authorizm tender, to charge or setoff all sums owing on the debt against any and all such aomoun& COLLATERAL Borrower acknowledges this Note is secured by a 3 10 mortgage Ilen on 595 Mountain Road, Boiling Springs, Cumberland County, Pennsylvania and a e mortgage lien on 14 Cardinal Drive, Carlisle, Cumbedand County, Pennsylvanis. LINE OF CREDIT. This Note evidences a revolving line of audit Advances under this Note, as well as directions for payments from Sorrowwar's accounts, may be requested orally or In writing by Borrower or by an authorized person. Lender may, but need not requires that all oral requests be confimied in writing. Borrower agrees to be liable for all sums either (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's account with Leader. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, Including deny computer printouts. PATRIOT ACT. TO HELP THE GOVERNMENT FIGHT THE FUNDING OF THE TERRORISM AND MONEY LAUNDERING ACTIVITIES, FEDERAL LAW REQUIRES ALL FINANCIAL INSTITUTIONS TO OBTAIN, VERIFY, AND RECORD INFORMATION THAT IDENi1FiES EACH PERSON WHO OPENS AN ACCOUNT. WHAT THIS MEANS FOR YOU WHEN YOU OPEN AN ACCOUNT, WHETHER IT BE A DEPOSIT ACCOUNT OR A LOAN, WE WILL ASK FOR YOUR NAME, ADDRESS, DATE OF BIRTH, AND OTHER INFORMATION THAT WILL ALLOW US TO IDENTIFY YOU. WE MAY ALSO ASK TO SEE YOUR DRIVER'S LICENSE OR OTHER IDENTIFYING DOCUMENTS. CROSS *DEFAULT. This loan also secures payment and perk nance of all other loans to Borrower or any guarantor. The word 'Guarantor means any guarantor, surety or accommodation party of any or ail of the roan. SUCCESSOR INTERESTS. The terms of this Notre shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall Inure to the benefit of Lender and Its suers and assigns. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not effect the reel of the Note. tender may delay or forgo enforcing any of Its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to extent allowed by law, wake presentment, demand for payment, and notice of dishonor. Upon any change In the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarentor, accommodations maker or endorser, shoe be released from liabllity. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral, and talcs any other action deemed necessary by Lender without On consent of or notice to anyone. Ali such parties also agree that Lender may modify this loan without the consent of or notice to anyone other then the party with whom the modification is made. The obligations under the Note are joint and several. If any portion of this Note Is for any reason determined to be unenforceable, It will not e}}bct the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER DEMAND FOR PAYMENT OF THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGEMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WiTH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10 %) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THIN FIVE HUNDRED DOLLARS ($500.00) ON WHICH JUDGEMENT OR JUDGEMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THiS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGEMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HERE13Y WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HERRING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGEMENT AND STATES THAT EITHER A REPERSENi'ATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGEMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPERSENTED BY INDEPENDENT LEGAL. COUNSEL. DEMAND PROMISSORY NOTE Loan No. (Con0nued) Page 9 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTANDS ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS AND THE DEMAND FEATURE. BORROWER AGREES TO THE TERMS OF THIS NOTE. BORROYIIER ACKNOWLEDGES RECEIPT OF A COMPLETE COPY OF THIS NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEAL INSTRUMENT ACCORDING TO LAW. BORROWER: Hughes Cornrec=& Ina B ; seaQ Seth ea ATTEST: of Sec *M or As#&Unt S*Tretary Lender. ITY John s, Loan Officer PROMISSORY NOTE ....... ........ .......... ........... ........... . . . ............... ... .. ............ A ... ... .. . .... ..... ... . .. . . . . .. . .. ............ ... % . . .............. ........... .............. . .......... . ..... ... .. ........... .................... ..... .. . . .. .. . . .............. . . . . . . .... .. . . . .... %.. ...... ....... .......................... . ..... .. . . . ............... ............... ......................... . . . . ...... ................. . . . ...... ....... References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing has been omitted due to text length limitations. Borrower: Hughes Contracting Inc Lander: Integrity Bank 14 Cardinal Drive Camp Hill Office Carlisle, PA 17015 3345 Market Street Camp Hill, PA 17011 (717) 920-4900 Principal Amount: $47,123.42 Date of Note: October 22, 2012 PROMISE TO PAY. Hughes Contracting Inc ("Borrower') promises to pay to Integrity Bank ("Lender"), or order, In lawful money of the United States of America, the principal amount of Forty-seven Thousand One Hundred Twenty-three & 42/100 Dollars ($47.123.42), together with Interest on the unpaid principal balance from October 22, 2012, until paid In hill. PAYMENT. Subject to any payment changes resulting from changes In the Index, Borrower will pay this loan in accordance with the following payment schedule, which calculates Interest on the unpaid principal balances as described In the "INTEREST CALCULATION METHOD" paragraph using the Interest rates described in this paragraph: 35 monthly consecutive principal and interest payments In the Initial amount of $313.01 each, beginning November 25, 2012, with interest calculated on the unpaid principal balances using an Interest rate based on the Now York Prime Rate of Interest. The Now York Prime Rate of interest shall mean the Interest rate per annum announced from time to time In various business journals, such as The Wall Street Journal, as the "Prime Rate of Interest". The Now York Prime Rate of Interest Is an Index, and loans of the Bank may be established at, above or below the index. The Now York Prime Rate of Interest Is not necessarily the Bank's lowest rate of Interest. The Interest rate shall float at New York Prime (currently 3.250%), plus a margin of 1.000 percentage points, adjusted H necessary for the minimum and maximum rate limitations for this loan, resulting In an initial Interest rate of 5.000% per annum based on a year of 360 days; and one principal and Interest payment of $43,039.20 on October 25, 2015, with interest calculated on the unpaid principal balances using an Interest rate based on the Now York Prime Rate of Interest. The Now York Prime Rate of Interest shall mean the interest rate per annum announced from time to time in various business journals, such as The Wall Street Journal, as the "Prime Rate of Interest". The Now York Prime Rate of Interest is an Index, and loans of the Bank may be established at, above or below the Index. The Now York Prime Rate of Interest is not necessarily the Bank's lowest rate of Interest. The interest rate shall float at New York Prime Icurrently 3.250%). plus a margin of 1.000 percentage points, adjusted if necessary for the minimum and maximum rate limitations for this loan, resulting In an initial interest rate of 5.000% per annum based on a year of 360 days. This estimated final payment is based on the assumption that all payments will be made exactly as scheduled and that the Index does not change; the actual final payment will be for all principal and accrued Interest not yet paid, together with any other unpaid amounts under this Note. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid Interest; then to principal; then to any unpaid collection costs; and then to any late charges. Borrower will! pay Lander at Lender's address shown above or at such other place as Lender may designate In writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent Index which is the New York Prime Rate of Interest. The New York Prime Rate of interest shall mean the interest rate per annum announced from time to time In various business journals, such as The Well Street Journal, as the "Prime Rate of Interest". The New York Prime Rate of Interest is an index, and loans of the Bank may be established at, above or below the index. The New York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shall float at New York Prime (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each month. Borrower understands that Lender may make loans based on other rates as well. The Index currently Is 3.250% per annum. The interest rate or rates to be applied to the unpaid principal balance during this Note will be the rate or rates set forth herein in the Payment" section. Notwithstanding any other provision of this Note, after the first payment stream, the Interest rate for each subsequent payment stream will be effective as of the due date of the last payment in the just-ending payment stream. NOTICE: Under no circumstances will the interest rate on this Note be less than 5.000% per annum or more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate, Lender, at its option, may do one or more of the following: (A) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date, (B► increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments, and (D) continue Borrower's payments at the same amount and increase Borrower's final payment. INTEREST CALCULATION METHOD. Interest on this Note Is computed on a 365/360 basis; that Is, by applying the ratio of the Interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note Is computed using this method. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full', "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that Indicates that the payment constitutes . payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Integrity Bank, 3314 Market Street Camp Hill, PA 17011. LATE CHARGE. It a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding an additional 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. After maturity, or after this Note would have matured had there been no default, the Default Rate Margin will continue to apply to the final interest rate described In this Note. If judgment is entered in connection with this Note, interest will continue to accrue after the date of judgment at the rate in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note: Payment Default. Borrower fails to make any payment when due under this Note. PROMISSORY NOTE {Continued) Page 2 Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower. Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents. False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter. Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self -help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. Change In Ownership. Any change in ownership of twenty -five percent (25%) or more of the common stock of Borrower. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve 0 2) months, it may be cured if Borrower, after Lender sends written notice to Borrower demanding cure of such default: (1) cures the default within ten (10) days; or (2) If the cure requires more than ten 00) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including reasonable attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury Vial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $33.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by a 3rd mortgage lien on 595 Mountain Road, Boiling Springs, Cumberland County, Pennsylvania and a 3rd mortgage lien on 14 Cardinal Drive, Carlisle, Cumberland County, Pennsylvania. PATRIOT ACT. TO HELP THE GOVERNMENT FIGHT THE FUNDING OF TERRORISM AND MONEY LAUNDERING ACTIVITIES, FEDERAL LAW REQUIRES ALL FINANCIAL INSTITUTIONS TO OBTAIN, VERIFY, AND RECORD INFORMATION THAT IDENTIFIES EACH PERSON WHO OPENS AN ACCOUNT. WHAT THIS MEANS FOR YOU: WHEN YOU OPEN AN ACCOUNT, WHETHER IT BE A DEPOSIT ACCOUNT OR A LOAN, WE WILL ASK FOR YOUR NAME, ADDRESS, DATE OF BIRTH, AND OTHER INFORMATION THAT WILL ALLOW US TO IDENTIFY YOU. WE MAY ALSO ASK TO SEE YOUR DRIVER'S LICENSE OR OTHER IDENTIFYING DOCUMENTS, CROSS COLLATERALIZED /CROSS DEFAULT. This loan also secures payment and performance of all other loans to Borrower or any guarantor. The word "Guarantor' means any guarantor, surety or accomondation party of any or all of the Loan. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this PROMISSORY NOTE (Continued) Page 3 loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10 %) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR. MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: HUGHES R TI G 1 By. 7 Iseal) se a ATTES c ( Corporate Seal f Secr ary or As tent Secretary LENDER: INTE`dR(TY NK X ohn He s, Vice Press nt/ Senior Commercial ender L.I. PNO L.1i 1... 12.7 &. Cep. NrIr.A FFwaY18oYM1bn,, Me. 1992, 2012. M "hull-d. PA KALEN01NMCi1NR1020.FC TM12218 M1.28 DISCLO.,,,JRE FOR CONFESSION OF J�.,}GMENT e.#laf r. +aa�r References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or Item. Any item above containing " has been omitted due to text length limitations, Declarant Hughes CoMraotinS Ina Lender: Integrity Bank 14 Cardinal Drive Camp Hill Office CardsM. PA '17016 3345 Market Stmt Can* Hill, PA 17011 (717) 9204M DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS DAY OF . , 20 . A PROMISSORY NOTE FOR $60,000.00 OBLIGATING DECLARANT TO REPAY THAT AMOUNT. A. THE UNDERSIGNED UNDERSTANDS THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST DECLARANT IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, W EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANTS RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE NOTE. THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S ENTERING JUDGMENT AGAINST DECLARANT BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. S. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON. ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEWNG DECLARANT'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, 19 KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WANING THESE RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE. C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, THE UNDERSIGNED REPRESENTS THAT: INITIALS 1. DECLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. 15M 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO DECLARANT'S ATTENTION. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: HUGHES C G By: .. (Sad$ S B ug s ATTEST: Q AA J] D kw I Corporate Seal 1 Ss +miry or A#Wmnt Secretery lAtl11 NIO yni� W. �i1G0p1 G,e. yrr,r 1Y�,Y Mr,l„., Imo, /w,. �M M i/.r Ilwr., • M WYiOMaC�1kWNE 11F,7," ,RM !, ✓ I i I i \; S i COMMERCIAL GUARANTV.- 4. References In the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. item above contains •" •'" has been ornitted due to text length limitations. Borrower: Hughes Contracting Inc Lender: Integrity Bank 14 Cardinal Drive Camp He off loo Carlisle. PA 17015 3345 Market Street Camp Hill, PA 17011 (717) 920.4900 f israntor: Robert D. Hughes 595 Mountain Read Boiling Sprfage, PA 17007 CONTBNUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration, Guarantor absolutely and unconditionally guarantees full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance end discharge of all Borrower's obligations under the Note mid the Related Documents. This is a guaranty of payment and performance and not of collection, so Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lander's remedies against anyone also obligated to pay the Indebtedness or against any collateral securing the Indebtedness, this Guaranty or,any other guaranty of the Indebtedness. Guarantor will make any payments to Lander or its order, on demand, In legal tender of the United States of America, In same -day funds, without set -off or deduction or counterclaim, and will otherwise perform Borrower's obligations under the Nate and Related Documents. Under this Guaranty, Guarantor's liability Is unlimited and Guarantor's obligations we continuing. INDEBTEDNESS. The word " hidebtednesa" as used M this Guaranty means all of the principal amount outstanding from time to time and at any one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, reasonable attorneys' fees, arising from any and all debts, liabilities and obligations of every nature or form, now existing or hereafter arising or acquired, that Borrower individually or collectively or Interchangeably with others, owes or will owe Lender. 'Indebtedness' Includes, without gmito on, loans, advances, debts, overdraft indebtedness, credit card indebtedness, Wass obligations, liabilities and obligations under any Interest rate protection agreements or foreign currency exchange agreaments or commodity price protection agreemen to other obligations, and liabilities of Borrower, and any present or future Judgments against Borrower, future advances, inane or transactions that renew, extend, modify, refinance, consolidate or substituts these debts, liabilities mid obligations whether: voluntarily arily or involuntarily Incurred; due or to become due by their terms or acceleration; absolute or contingent; liquidated or unliquidated; determined or undetermined; direct or Indirect; primary or secondary in nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or non - negotiable instrument or writing; originated by Lander or another or others: barred or unenforceable against Borrower for any reason whatsoever; for any transactions that may be voidable for any reason (such as infancy, insanity, ultra vires or otherwise); and originated then reduced or extinguished and then afterwards increased or reinstotad. If Lender presently holds one or mom guaranties, or hereafter receives additional guaranties from Guarantor, Lender's rights under all guaranties shall be cumulative. This Guaranty shall not lunleas specifically provided below to the contrary) affect or Invalidate any such other guaranties. Guarantor's liability will be Guarantor's aggregate liability under the terms of this Guaranty and any such other unterminated guaranties. CONTiNMe GUARANTY. THIS IS A "CONTINUING GUARANTY" UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR'S OBLIGATIONS AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME. DURATION OF GUARANTY. This Guaranty will take affect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lander of any notice of revocation shag have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. If Guarantor alocis to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to lender, by certified Masi, at Lender's address listed above or such other place as Lender may designate In writing. Written revocation of this Guaranty wig apply only to new Indebtedness crested after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term "now Indebtedness' does not Include the Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this purpose and without limitation, 'new Indebtedness' does not include all or part of the Indebtedness that is: incurred by Borrower prior to revocation; incurred under a commitment that became binding before revocation; any renewals, extensions, substitutions, and modifications of the indebtedness. This Guaranty shalt bind Guarantor's estate as to the indebtedness created both before and after Guarantor's death or Incapacity, regardless of Lander's actual notice of Guarantor's death. Sub)oct to the foregoing, Guarantor's executor or administrator or other legal reprosentative may terminate this Guaranty in the same manner in which [guarantor might have terminated It and with the same affect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the Debility of any remaining Guarantors under this Guaranty. k Is anticipated that fkratuatlons may occur In the aggregate amount of the indebtedness covered by thls Guaranty, and Guarantor specifically acknowledges and egress that reductions in the amount Of the thdobtedn"s, oven to zero dollars 00.0011 shag not constltuts a tsrnulneden of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's hats, successors and assigns so long as any of the Indsbtedneaa remains unpaid and even though the Indebtedness may from time to tgme be zero dollars ($0.001. GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocatwn hereof, without notice Or demand and without lessening Quwwrtor's gabWy under Ogle Guaranty, iron tints to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (B) to ester, compromise, renew, extend, accelerate, or otherwise charge one or more times the tins for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of merest on the Indebtedness; extensions may be repeated and may be for longer then the original ban term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordkete, fail or decide not to perfect, and release any such security, with or without the substitution of now collateral; (D) to release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lander may choose; M to daft —ins how, when and what application of payments and credits shall be made on the indebtedness; IF) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudieial sale permitted by the terms of the controlling security agreement or dead of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this COMMERCIAL GUARANTY (Continued) Pepe 2 Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (8) this Guaranty Is executed at Borrower's request and not at the request of Lander; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result In a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any few, regulation, court decree or order app(ic" to Guarantor; (E) Guarantor has not and will rot, without the prior written consent of Lender, sail, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially aU of Guarantor's assets, or any interest therein; (F) upon Lender's request, Guarantor will provide to Lender financial and credit Information In form acceptable to Lender, and all such financial Information which currently hot been, and all future financial information which will be provided to Lander Is and will be true and correct in 611 material respects and fairly present Guarantor's financial condition as of the data the financial information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no evert has occurred which may materially adversely affect Guarantor's financial condition; (H) no litigation, claim, Investigation, administrative proceeding or similar action Oncl ding those for unpaid taxes) against Guarantor is pending w threatened; (1) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; std (.R Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lander shall have no obligation to disclose to Guarantor any Information or documents acquired by Lender in the course of Its relationship with Borrower. GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lander with the following: Annual Statements. As soon as available, but in no event later than one - hundred- twenty (120) days after the and of each fiscal year, Guarantor's balance shoat and income statement for the Vast ended, prepared by Guarantor. Tax Returns. As soon as available, but in no event later then one - hundred - twenty 1120) days after the applicable filing date for the tax reporting period ended, Federal and other governmental tax reruns, prepared by Guarantor. All financial reports required to be provided under this Guaranty shall be prepared In accordance with GAAP, applied on a consistent basis, and certified by Guarantor as being true and correct. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lander (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the indebtedness or of any nonpayment related to any collateral, or notice of any action or nonnction on the part of Borrower, Lender, any surety, endorser, or other guarantor In connection with the indebtedness or in connection with the creation of now or additional loans or obligations; (C) to resort for payment or to proceed directly or at arse against any person, including Borrower or any other guarantor, (DI to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (E) to give notice of the terms, time, and pieta of any public or private sale of personal property security hold by Lander from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power; or (G) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any rights or defenses arising by reason of (A) any 'one action" or 'anti- deficiancy' low or any other law which may prevent Lander from bringing any action, Including a claim for deficiency, against Guarantor, before or after Lander's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (8) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (L) any disability or other defense of Borrower, of any other guarantor, or of any other person, or by reason of the cessation of Borrower's liability from any cause whatsoever, other then payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified Impairment of any collateral for the indebtedness; IE) any statute of limitations, if at any time any action or suit brought by Lander against Guarantor is commenced, there is outstanding indebtedness which Is not barred by any applicable statute of ilmitations; or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lander is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtor*, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above Is made with Guarantor's full knowledge of its significance and consequences and that under the circumstances, the waivers are reasonable and not contrary to public policy or law. if any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy. RIGHT OF SETOFF. To the extent permitted by applicable law, Lander reserves a right of setoff In all Guarantor's accounts with Lander (whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone also and all accounts Guarantor may open in the future. However, this does not Include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Guarantor authorizes Lander, to tits extent permitted by applicable law, to hold these funds if there is a default, and Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the indebtedness, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes Insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have agaivat Borrower, upon any account whatsoever, to any claim that Lender may now or hereafter have against Borrower. in the event of insolvency and consequent liquidation of the seseta of Borrower, through bankruptcy, by an assignment for the bent t of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Under and shag be first applied by Lender to the indebteddness. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee In bankruptcy of Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or creditt agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the some are subject to this Guaranty and shall be delivered to Lender. Guorenmr agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to file financing statements and continuation statements and to execute documents and to take a other actions as Lender deems necessary or appr -Grte to perfect, preserve and enforce its rights under this Guaranty. COMMERCIAL GUARANTY %w (Continued) Page 3 MOCELLAMEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters not forth In this Guaranty. No @iteration of or amendment to this Guaranty shall be effective unless given In writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees; Expenam. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys' toes and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expanses of such enforcement. Costs and expenses include Lender's reasonable attorneys' fees and legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated postiudgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define tins provisions of this Guaranty. Governing Law. This Guaranty will be governed by federal law applicable to Lander and, to the extsat not preempted by federal law, tin• laws of the Cornmonweahh of Pennsylvania without regard to he conflicts of law provisions. Choice of Vanua. If there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the counts of Cumberland County, Commonwealth of Pemsylvanis. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to Interpret the amt of this Guaranty. Guarantor hereby Indemnlfias and holds Lender harmless from all losses, claims, damages, and costs (Including Lender's attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. intapraan9on. In an cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty In the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower' and "Guarantor" respectively shall mean all and any one or more of them. The words 'Guarantor,' 'Borrower,' and "Lender" include the heirs. successors, assigns, and transferees of each of them. if a count finds that any provision of this Guaranty Is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be Invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of tha officers, directors, partners, managers, or other agents acting or purporting to act on their behalf, and any Indebtedness made or created In reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law, any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimlle (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shell be In writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled 'DURATION OF GUARANTY.' Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice Is to change the party's address. For notice purposes, Guarantor agrees to keep tender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law, If there Is more than one Guarantor, any notice given by Lender to any Guarantor Is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lander in exercising any right shall operate as s waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not pre)udke or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lander Is required under this Guaranty, the granting of such consent by Lender in any instance shag not oonstitute continuing consent to subsequent instances where such consent is required and In all cases such consent may be granted or withheld In the sole discretion of Lender. Successors snd Assigns. The terms of this Guaranty shell be binding upon Guarantor, and upon Guarantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and Its successors and assigns. Waive Jury. Lender and Guarantor hereby wales the right to any Jury trial In any action. proceeding, or countwelalm brought by shfter Lender or Guarantor against the othsr. DEFINITIONS. The following capitalized words and arms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts In lawful money of the United Sane of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such arms in the Uniform Commercial Code: Borrower. The word 'Borrower' meens Hughes Contracting free and Includes all co- signers and co-makers signing the Note and all their successors and assigns. GAAP. The word "GAAP' means generally accepted accounting principles. auwwftr. The word "Guarantor* means everyone signing thin Guaranty, including without limitation Robert D. Hughes, std In each case, any signer's successors and assigns. Guaanty. The word 'Guaranty" means this guaranty from Guarsttor to Lender. indebtedness. The word 'Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word "Lender* mean@ integrity Bank, its sucoes ers and assigns. Nan. The word `Note" means and includes without limitation so of Borrower's promissory now@ and/or credit agreements evidencing Borrower's ban obligations in favor of Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of and substitutions for promissory notes or credit agreements. COMMERCIAL GUARANTY (Continued) Page a Related Documents. The words *Related Documents' mean an promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreemente, mortgages, deeds of trust, security deedsr collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDE13TEONESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS 14600► ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY, AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTEE) IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED W THE MANNER SET FORTH IN THE SECTION TRIM "DURATION OF GUARANTY ". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IODATED APRIL 27, 2008. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: p X , 1Ffl Semi) D . ad, wladged and 9 0 , 01 h , In presence of: Will" V 2_ X Witness weRrWko .4. VY.as.lomt W.,arrr~"@.Yd L4 1M1,3= ADW*0* W .PA 9f"=§X%Cff L%MPC Rrn§ R840 DISCLG,,.JRE FOR CONFESSION OF 4,,,310MENT 13Ta 4 # .karw �w# References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any hem above contains "•'•" has bean omitted due to text length limitations. ewower: Hughes Cw*scdng Inc (TIN: 26. 1620160) Lender: kd gray Bank 14 Cardinal Drive Camp HM Orftce Carlisle, PA 17016 3346 Market Street Camp MI11, PA 17011 (71719204900 Dedurent: Robert D. Hughes 698 Mountain Road Wiling Springs, PA 17007 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS DAY OF . 20 , A GUARANTY FOR AN UNLIMITED AMOUNT. A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WANING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. S. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, 1 AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND i EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE. C. AFTER HAYING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, I REPRESENT THAT: INITIALS 1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE GUARANTY. kead 2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ` TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS *10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: X. j. Seal) Robert D. Hughes Signed, Q)mo apZp-and In the presence of: X r Witness weR rw , w. aw.,naa an• M..a n...,�+srww ti,. tw. aa. M WO" ft—& • M F-VAW WAftMM"M1P0 7ws"s "w» INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13 3471a L, i v ' !Tef" HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, Defendants : CIVIL ACTION — LAW CERTIFICATE OF RESIDENCE I, Clayton W. Davidson, certify that the addresses for the Defendants are as follows: Hughes Contracting, Inc. Robert D. Hughes 14 Cardinal Drive 595 Mountain Road Carlisle, PA 17013 -4309 Boiling Springs, PA 17007 The following address for the Plaintiff is as follows: =m r ` �- Gl)� ".'CD Integrity Bank 3345 Market Street Camp Hill, PA 17011_ S � � c McNEES WALLACE & NURICK LLC Date: July 8, 2013 B Clayton W. avidson PA Attorne I.D. No. 79139 McNees Wallace & Nurick LLC 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108 -1166 (717) 260 -1678 (Direct Fax) (717) 232 -8000 (Phone) cdavidson@mwn.com Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 1 3 - 31(o ivt I — Ferl" HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, ' Defendants : CIVIL ACTION — LAW �Mm c AFFIDAVIT OF NON - MILITARY SERVICE C-1 ``, AND LAST -KNOWN ADDRESS D OF ROBERT D. HUGHES The undersigned, being duly sworn according to law, deposes and says to the best of his information, knowledge and belief that Robert D. Hughes is not in the Military or Naval Service of the United States or its Allies, or otherwise within the provisions of the Servicemembers Civil Relief Act, f /k/a the Soldier's and Sailor's Civil Relief Act of 1940, 50 U.S.C. App. 501, et seq. Robert D. Hughes is over eighteen (18) years of age and was last known residing at 595 Mountain Road, Boiling Springs, PA 17007. Clayton . Davids SWORN and subscribed to before me this A of July, 2013. Notary Public COMMONWEALTH F PENN { VANIA My Commission Expires Notarial $001 Ellen M. Palmer, Notary POW SEAL city of Harrisburg, Dauphin County ( ) My Commission Expires Aug. 1, 2014 . 3 INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13 ?A9 CivilTerw HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, ` = Defendants : CIVIL ACTION — LAW C= MW C F'ir NOTICE UNDER PA.R.C.P. NO. 2958.1 OF JUDGMENT Wiz AND EXECUTION THEREON TO: Hughes Contracting, Inc. Robert D. Hughes 5; -- -: 14 Cardinal Drive 595 Mountain Road Carlisle, PA 17013 -4309 Boiling Springs, PA 17007 A judgment in the amount of $52,094.42 along with interest accruing at the per diem rate of $6.502359722 from July 1, 2013 until paid in full, plus costs, has been entered against you and in favor of Metro Bank, in the above captioned case without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper allegedly signed by you. The sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249 -3166 or (800) 990 -9108 1 1 McNEES WALLACE & NURICK LLC w Date: July 8, 2013 By: Clayton W. D vidson Attorney I.D. 79139 100 Pine Street -P.O. Box 1166 Harrisburg, PA 17108 -1166 Direct Fax: 717 -260 -1 678 Phone: 717 - 232 -8000 cdavidsongmwn.com Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF �'iaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13 - �R7(O w1 HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, Defendants : CIVIL ACTION — LAW NOTICE OF ENTRY OF JUDGMENT TO: Hughes Contracting, Inc. Robert D. Hughes 14 Cardinal Drive 595 Mountain Road Carlisle, PA 17013 -4309 Boiling Springs, PA 17007 You are hereby notified that on July2, 2013, a judgment by confession was entered against each of you in the above - captioned case in favor of Integrity Bank as follows: Principal: $ 46,816.99 Accrued Interest: $ 527.35 Late Fees $ 15.65 Attorney's Fees 10% commission): $ 4,734.43 Total: $52,094.42* *along with interest accruing at the current per diem rate of $6.502359722 from July 1, 2013 until paid in full, plus costs (the "Indebtedness "). DATE: bb-3 A PROTHONOTARY INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13-3976 HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, e -... Defendants : CIVIL ACTION - LAW C=° 4 RETURN OF SERVICE PURSUANT TO PA. R.C.P.No. 2958.1(c) 2=6 - �c = a Plaintiff, Integrity Bank, hereby files this Return of Service and swears and affif person listed below was served pursuant to Pa. R.C.P. No. 2958.1(b) with the Notice of Judgment and Execution Required by Rule 2958.1 by certified mail, return receipt requested, as provided by Pa. R.C.P.No. 403. A copy of the receipt for certified mail is attached hereto. TO: Hughes Contracting, Inc. Robert D. Hughes 14 Cardinal Drive 595 Mountain Road Carlisle, PA 17013-4309 Boiling Springs, PA 17007 Respectfully submitted, McNEES WALLACE &NURICK LLC Date: July 31, 2013 By , Clayton W. Davidson PA Attorney I.D.No. 79139 McNees Wallace &Nurick LLC 100 Pine Street- P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 260-1678 (Direct Fax) (717) 232-8000 (Phone) cdavidsongmwn.com Attorneys for Integrity Bank ------------------------------------•----.......----------=------ { 2. Article Number -..COMPLETE THIS SECTION ON DELIVERY E A Reoelved by(Please Print Cleary) B. Date of Delivery C. Signature I .7196 9008 9111 6760 7301 Agent ssee '. D. Is d livery address different from item 1? ❑Yes If YES,enter delivery address below: Q No i 3. Service Type CERTIFIED MAIL' r 4: Restricted Delivery?(Extra Fee) ❑Yes 1. Article Addressed to: ' Hughes Contracting,Inc. y 14 Cardinal Drive } Carlisle,PA 17013-4309 21328-0329 t I 1 3029 ` 1j PS Form 3811,January 2005 Domestic Retlm Receipt -- �2. Article Number R::..--------------------------------------- COMPLETE SECTION ON DELIVERY C C A R by(Please Cie B. Data of E e&,.y 6 w 1 . Signatu >=tINQSAf� 7196 9008 9111 6760 7318 x �'N` � eee' I D. Is delivery address different fromb ? 16 Q L.► i If YES,enter delivery address be � Q 3. Service Type CERTIFIED MAILT'" 2013 4. Restricted Delivery?(Extra Fee) ❑yes SPS s 1. Article Addressed to: Robert D.Hughes 595 Mountain Road Boiling Springs,PA 17007 21328-0329 t 1 3029 t � f PS Form 3811,January 2005 Domasba Return Receipt INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. 13-3976 HUGHES CONTRACTING, INC. and ROBERT D. HUGHES, Defendants : CIVIL ACTION - LAW PRAECIPE TO SATISFY JUDGMENT AND DISCONTINUE ACTION TO: THE PROTHONOTARY OF CUMBERLAND COUNTY Please mark the judgment entered in the above captioned case as satisfied a4 discontinue all further action. Respectfully submitted, McNEES WALLACE & NURICK LLC Date: August 19, 2013 By r - Clayto W. Davidson PA Attorney I.D. No. 79139 McNees Wallace &Nurick LLC 100 Pine Street- P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 260-1678 (Direct Fax) (717) 232-8000 (Phone) cdavidson(cUmwn.com Attorneys for Integrity Bank CERTIFICATE OF SERVICE The undersigned does hereby certify that a true and correct copy of the foregoing Praecipe was served by first class, U.S. Mail upon the following: Hughes Contracting, Inc. Robert D. Hughes 14 Cardinal Drive 595 Mountain Road Carlisle, PA 17013-4309 Boiling Springs, PA 17007 Date: August 19, 2013 �0 0w� Katie Waters Paralegal