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HomeMy WebLinkAbout13-4432 � G ' Jail ? f �c� ! 1 BARLEY SNYDER William F. Colby, Jr., Esquire Ccl, &ER LAH D co Up,FY Keith Mooney, Esquire r E 1qN s Y U/A p j 1 A Court I.D. No. 46880; 74001 50 North Fifth Street, P.O. Box 942 Reading, PA 19603 -0942 (610) 376 -6651 Attorney for Plaintiff SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION - LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT Defendant 9 - `� `� , � No. CONFESSION OF JUDGMENT Pursuant to the authority contained in the Warrant of Attorney, a true and correct copy of which is attached to the Complaint filed in this action, I appear for the Defendant and confess judgment in favor of the Plaintiff and against the Defendant, as follows: Principal Balance $219,947.04 Interest to and including 7/10/13 1,811.00 Deferred Interest 3,046.75 Late Fees 2,448.84 Satisfaction Fees 138.50 Prepayment Fee 4,398.94 Appraisal 375.00 Attorneys' Fees for Confession 22,480.48 Total $ 254,646.55 Interest continues to accrue at the per diem rate of $33.54 from July 10, 2013, continuing late fees, and costs of collection. BARLEY SNYDER By. William F. Colby, Jr., Esquire Keith Mooney, Esquire // , Attorney for Plaintiff a -S Lea c� 53� 3735921 P �1 /' o 2313 AJIT 2� PH C,11 i " OERl",` ND COUNTY P ENNSSYLVANIA BARLEY SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 74001 50 North Fifth Street, P.O. Box 942 Reading, PA 19603 -0942 (610) 376 -6651 Attorney for Plaintiff SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION — LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT Defendant No. �— �� � o� Chi _ / COMPLAINT CONFESSION OF JUDGMENT 1. The Plaintiff, Susquehanna Bank, is a banking corporation maintaining an address of 307 International Circle, Suite 600, Hunt Valley, MD 21030 -1376. 2. Stone House Auto Sales, LLC (the "Defendant ") is a Pennsylvania limited liability company with a registered address of 7806 Carlisle Pike, Carlisle PA 17103. 3. On January 23,2009, for value received, in connection with a commercial, and not a consumer, transaction, Defendant executed to the order of, and delivered to Plaintiff a certain Promissory Note (the "Note ") pursuant to which the Defendant promised to pay to Plaintiff the principal amount of Two Hundred Thousand Dollars ($200,000.00); plus interest and late fees thereon as therein provided. A true and correct copy of the Note is attached hereto, made a part 3935462 -1 hereof, and marked as Exhibit "A." A true and correct copy of the Disclosure for Confession of Judgment is attached hereto, made a part hereof, and marked as Exhibit `B ". 4. The Note was thereafter modified by Change in Terms Agreements dated December 23, 2010, May 17, 2011, and August 17, 2011 (collectively, the "Agreements "), whereby certain terms and conditions of the Note were modified. The Agreements are attached hereto, made a part hereof, and marked as Exhibit "C ". The Note and Agreements are collectively hereinafter referred to as the "Note ". 5. The Note has not been assigned and the Plaintiff is the owner of the Note. 6. This Court has subject matter jurisdiction over all causes of action under the Note. 7. The Defendant is in default under the Note because the Defendant has failed, refused, and continues to fail and refuse to pay the monthly payments to Plaintiff under and pursuant to the Note. 8. The Plaintiff made demand upon Defendant for payment under and pursuant to the terms and conditions of the Note, which the Defendant has failed and refused to pay. A true and correct copy of the demand is attached hereto, made a part hereof, and marked as Exhibit "D". 9. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 10. Judgment has not been entered on the warrant of attorney contained in the Note in any jurisdiction. 11. An itemization of the amount due and owing to the Plaintiff by the Defendant under the Note, as of July 10, 2013, is as follows: Principal Balance $219,947.04 3935462 -1 Interest to and including 7/10/13 1,811.00 Deferred Interest 3,046.75 Late Fees 2,448.84 Satisfaction Fees 138.50 Prepayment Fee 4,398.94 Appraisal 375.00 Attorneys' Fees for Confession 22,480.48 Total $ 254,646.55 Interest continues to accrue at the per diem rate of $33.54 from July 10, 2013, continuing late fees, and costs of collection. 12. The warrant of attorney contained in the Note provides for the confession of judgment against the Defendant for the entire principal balance owed under the Note, all accrued interest, late charges, together with costs.of suit and an attorney's commission of ten percent (10 %) of the unpaid principal balance and accrued interest. WHEREFORE, Susquehanna Bank, Plaintiff, prays your Honorable Court to grant judgment in favor of the Plaintiff and against the Defendant in the sum of Two Hundred Fifty - four Thousand Six Hundred Forty -six Dollars and Fifty -five Cents ($254,646.55), plus interest at the per diem rate of $33.54, from July 10, 2013, and costs of collection. BARLEY SNYDER By: William F. Colby, Jr., Esquir Keith Mooney, Esquire Attorneys for Plaintiff 3935462 -1 EXHIBIT "A" PROMISSORY NOTE Borrower: Stone House Auto Sales, LLC Lender: GRAYSTONE BANK 7086 Carlisle Pike Capital Region Carlisle, PA 17013 112 Market Street Harrisburg, PA 17101 Principal Amount: $200,000.00 Date of Note: January 23, 2009 PROMISE TO PAY. Stone House Auto Sales, LLC ( "Borrower ") promises to pay to GRAYSTONE BANK ( "Lender "), or order, in lawful money of the United States of America, on demand, the principal amount of Two Hundred Thousand & 00/100 Dollars ($200,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning March 1, 2009, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender 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 index which is Lender's Prime Rate (the "Index "). This is the rate Lender charges, or would charge, on 90 -day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. The interest rate to be applied to the unpaid principal balance of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 1.500 percentage points over the Index. NOTICE: Under no circumstances will the interest rate on this Note be less than 6.000% per annum or more than the maximum rate allowed by applicable law. INTEREST CALCULATION METHOD. Interest on this Note is computed on a 3651360 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 of accrued unpaid interest. Rather, early payments will reduce the principal balance due. 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: GRAYSTONE BANK, 112 Market Street Harrisburg, PA 17101. LATE CHARGE. If a regularly scheduled interest payment is 20 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $250.00, whichever is greater. If Lender demands payment of this loan, and Borrower does not pay the loan in full within 20 days after Lender's demand, Borrower also will be charged either 10.000% of the sum of the unpaid principal plus accrued unpaid interest or $250.00, 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 a 2.000 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. 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. LENDER'S RIGHTS. Upon Lender's demand, 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 trial 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 Dauphin County, Commonwealth of Pennsylvania. 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. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested either orally or in writing by Borrower or by an authorized person. All oral requests shall be confirmed in writing on the day of the request, on forms acceptable to Lender. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. 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 accounts with Lender. 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 daily computer print -outs. SECURITY. All collateral (as herein defined) is security for this Note and any renewals, extensions and modifications thereof, and the payment, PROMISSORY NOTE Loan Pilo: 4 -6852 (Continued) Page 2 performance and discharge of all other present or future indebtedness, obligations and undertakings (whether individual, joint, several, direct, contingent or otherwise) of the Borrower to or for the benefit of Lender, whether arising directly to Lender under this Note or under any other agreement, promissory note or undertakings now existing or hereinafter entered into by the Borrower to the Lender. The term "Collateral" includes all tangible and intangible property (i) described in any mortgage, pledge, assignment or other security document separately executed in favor of Lender, and (ii) in which a security interest has been granted to Lender pursuant to this Note. ANNUAL REVIEW. The Lender will review the Note annually for renewals and extensions; such renewals and extensions to be granted predicated on the performance of the company and /or individuals and adherence to the Loan Agreement and /or loan policy. CROSS COLLATERALIZE /CROSS DEFAULT. This loan will be cross - collateralized /cross - defaulted with all other loans from Borrower, or any of Borrower's related entities, to Lender. If at any time there is a default under this loan, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. 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 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: .STONE HOUSE AUTO SALES, LLC By Donald S. F ' tone House Sales, LLC LENDER: GRAYSTONE BANK X Heather R. Hall, Vice President USER PRO L—ing, V— 5.4200.006 Cop, Nm d Fm ... W Soi.do,; 1— 1997. 2009. AU Ri0— Ruw— - PA 5: \P wiWCFRLPL\020.FC TR -2675 PR -1 - PROMISSORY NOTE _ - Loan No: 4 -6852 (Continued) Page 2 performance and discharge of all other present or future indebtedness, obligations and undertakings (whether individual, joint, several, direct, contingent or otherwise) of the Borrower to or for the benefit of Lender, whether arising directly to Lender under this Note or under any other agreement, promissory note or undertakings now existing or hereinafter entered into by the Borrower to the Lender. The term "Collateral" includes all tangible and intangible property (i) described in any mortgage, pledge, assignment or other security document separately executed in favor of Lender, and (ii) in which a security interest has been granted to Lender pursuant to this Note - ANNUAL -REVIEW. The Lender will review the Note annually for renewals and extensions; such renewals and extensions to be granted predicated on the performance of the company and /or individuals and adherence to the Loan Agreement and /or loan policy. CROSS COLLATERALIZE /CROSS DEFAULT. This loan will be cross - collateralized /cross- defaulted with all other loans from Borrower, or any of Borrower's related entities, to Lender. If at any time there is a default under this loan, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. 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 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: STONE HOUSE AUTO SALES, LLC B i (Se Donald S. FBI tone House Sales, LLC _ LENDER: GRAYSTONE ANK X Heat r R. all, Vice residen LASER PRO L dig. Vm. 5.42.0.006 Cap,. Ha1a"2 Rnan W Saiwie Inc. 1997, 2009. AN Righta Rmorved. - PA S:\, ... it, %CflLLP MO.FC M -2675 PR -1 - EXHIBIT "B" DISCLO"RE FOR - CONFESSION OF JL_.)GMENT Declarant: Stone House Auto Sales, LLC Lender: GRAYSTONE BANK 7086 Carlisle Pike Capital Region Carlisle, PA 17013 112 Market Street Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS DAY OF 20 0 1 , A PROMISSORY NOTE FOR $200,000.00 OBLIGATING DECLARANT TO REPAY THAT AMOUNT. A. THE UNDERSIGNED UNDERSTANDS THAT THE NOTE CONTAINS. A CONFESSION OF JU MENT 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. IN EXECUTING THE NOTE, BEING FULLY AWARE OF DECLARANT'S 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. B. 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 SEIZING 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, IS KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING 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 E UNDERSIGNED REPRESENTS THAT: INITIALS CLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE TE. 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: STONE HOUSE AUTO SALES LLC By: o it r, J01anager of Stone House s, LLC LASER PRO Lending. Va. 5.42.00.004 Cw. MarlaaE F—dal S,h Vma. Inc. 1997, 2009. All Righn R—a 1. - PA 5:1v—iU%CMLPL1030.FC TR -2875 PR -1 EXHIBIT "C" CHANGE IN TERMS AGREEMENT Borrower: Stone House Auto Sales, LLC Lender: Graystone Bank, a Division of Graystone Tower Bank 7086 Carlisle Pike Capital Region Carlisle, PA 17013 112 Market Street Harrisburg, PA 17101 Principal Amount: $235,000.00 Date of Agreement: December 23, 2010 DESCRIPTION OF EXISTING INDEBTEDNESS. On January 23, 2009, Borrower executed and delivered to Lender a Promissory Note in the original Principal Amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) ( "Note "). DESCRIPTION OF CHANGE IN TERMS. Effective the date of this Agreement, Lender and Borrower have agreed to a temporary increase in the Principal Amount of the Note to Two Hundred Thirty Five Thousand and 00/100 Dollars ($235,000.00) until February 1, 2011. On February 2, 2011, the Principal Amount of the Note will revert to Two Hundred Thousand and 00/100 Dollars ($200,000.00). Any principal amount outstanding in excess of $200,000.00 will be immediately due and payable. A recorded mortgage lien against real property located at 407 Third Street, Enola, PA will be added to the Note as Collateral. PROMISE TO PAY. Stone House Auto Sales, LLC ( "Borrower ") promises to pay to Graystone Bank, a Division of Graystone Tower Bank ( "Lender"), or order, in lawful money of the United States of America, on demand, the principal amount of Two Hundred Thirty -five Thousand & 00/100 Dollars ($235,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning January 1, 2011, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender at Lenders address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this loan is subject to change from time to time based on changes in an index which is Lenders Prime Rate (the "Index "). This is the rate Lender charges, or would charge, on 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrowers request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. Interest on the unpaid principal balance of this loan will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 1.500 percentage points over the Index. NOTICE:.. Under no circumstances will the interest rate on this loan be less than 6.000% per annum or more than the maximum rate allowed by applicable law. INTEREST CALCULATION METHOD. Interest on this loan is computed on a 3651360 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 loan 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 Borrowers obligation to 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 ", "without recourse ", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lenders rights under this Agreement, 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: GRAYSTONE TOWER BANK, 1826 Good Hope Road Enola, PA 17025. LATE CHARGE. If a regularly scheduled interest payment is 20 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $250.00, whichever is greater. If Lender demands payment of this loan, and Borrower does not pay the loan in full within 20 days after Lenders demand, Borrower also will be charged either 10.000% of the sum of the unpaid. principal plus accrued unpaid interest or $250.00, whichever is greater. - INTEREST AFTER .DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be increased by adding an additional 2.000 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. If judgment is entered in connection with this Agreement, 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. LENDER'S RIGHTS. Upon Lenders demand, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Agreement 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 Agreement if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lenders reasonable attorneys' fees and Lenders 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 trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Agreement 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 Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lenders request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrowers 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. CHANGE IN TERMS - AGREEMENT Loan No: 4000006852 (Continued) Page 2 LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances under this Agreement may be requested either orally or in writing by Borrower or by an authorized person. All oral requests shall be confirmed in writing on the day of the request, on forms acceptable to Lender. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lenders office shown above. 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 accounts with Lender. The unpaid principal balance owing on this Agreement at any time may be evidenced by endorsements on this Agreement or by Lender's internal records, including daily computer print -outs. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lender's right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non - signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender may delay or forgo enforcing any of its rights or remedies under this Agreement without losing them. Borrower and any other person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, 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 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 Agreement are joint and several. PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: STO OUSE AUT SALES (Seal) Failor, Manager of Stone House Auto Sales, LLC LENDER: GRAYS NE BANK, A DIVISION OF G STONE TOWER BANK X. they , Vice Presi ent IASHi PRO L Wft, Vet. 53220.901 Cap,. R ft FiurMal SWUliwn, 1e 1997, MID. AN RgM Reeene0. - PA aiPR05 1E%CFNPL1020C.FC ­W7`5 PR-I CHANGE IN TERMS AGREEMENT Borrower: Stone House Auto Sales, LLC Lender: Graystone Bank, a Division of Graystone Tower Bank 7086 Carlisle Pike Capital Region Carlisle, PA 17013'• 112 Market Street Harrisburg, PA 17101 Principal Amount: $235,000.00 Date of Agreement: May 17, 2011 DESCRIPTION OF EXISTING INDEBTEDNESS. On January 23, 2009, Borrower executed and delivered to Lender a Promissory Note in the original Principal Amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) ( "Note "). A Change in Terms Agreement was executed to on December 23, 2010 to temporarily increase the Principal Amount of the Note to Two Hundred Thirty Five Thousand and 00/100 Dollars ($235,000.00) until February 1, 2011. On February 18, 2011 a subsequent Change in Terms Agreement was executed to extend the temporary increase until May 1, 2011. DESCRIPTION OF CHANGE IN TERMS. Effective the date of this Agreement, Lender and Borrower have agreed to an extension of the temporary increase in the Note to': Two Hundred Thirty Five Thousand and 00/100 Dollars ($235,000.00) until August 1, 2011. On August 2, 2011, the Principal Amount of the Note will revert to Two Hundred Thousand and 00 /100 Dollars ($200,000.00)- Any principal amount outstanding in excess of $200,000.00 will be immediately due and payable. PROMISE TO PAY. Stone House Auto Sales, LLC ( "Borrower") promises to pay to Graystone Bank, a Division of Graystone Tower Bank ( "Lender "), or order, in lawful money of the United States of America, on demand, the principal amount of Two Hundred Thirty -five Thousand & 00 /100 Dollars ($235,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning June 1, 2011, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender 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 loan is subject to change from time to time based on changes in an index which is Lender's Prime Rate (the "Index "). This is the rate Lender charges, or would charge, on 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. Interest on the unpaid principal balance of this loan will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 1.500 percentage points over the Index. NOTICE: Under no circumstances will the interest rate on this loan be less than 6.000% per annum or more than the maximum rate allowed by applicable law. ` INTEREST CALCULATION METHOD. Interest on this loan 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 loaA 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 % ithout 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 to 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 ", "without recourse ", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Agreement, 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: GRAYSTONE TOWER BANK, 1826 Good Hope Road Enola, PA ;17025. LATE CHARGE. If a regularly scheduled interest payment is 20 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $250.00, whichever is greater. If Lender demands payment of this loan, and Borrower does not pay the loan in full within 20 days after Lenders demand, Borrower also will be charged either 10.000% of the sum of the unpaid principal plus accrued unpaid interest or $250.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be increased by adding an additional 2.000 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. If judgment is entered in connection with this Agreement, 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 taw. LENDER'S RIGHTS. Upon Lenders demand, Lender may, after giving such notices as required by applicable law, declare the entire unpaid prtncipal balance under this Agreement 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 Agreement if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lenders reasonable attorneys' fees and Lenders 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 trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. { GOVERNING LAW. This Agreement 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 Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lenders request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrowers 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 CHANGE IN TERMS AGREEMENT Loan No: 4000006852 ( Continued) Page 2 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. LINE OF CREDIT. This Agreement evidences a revolving line of credit. Advances under this Agreement may be requested either orally or in writing by Borrower or by an authorized person. All oral requests shall be confirmed in writing on the day of the request, on forms acceptable to Lender. All communications, instructions, or directions by telephone or otherwise to Lender are to be directed to Lenders office shown above. 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 Borrowers accounts with Lender. The unpaid principal balance owing on this Agreement at any time may be evidenced by endorsements on this Agreement or by Lenders internal records, including daily computer print -outs. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lenders right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non - signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrowers heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender may delay or forgo enforcing any of its rights or remedies under this Agreement without losing them_ Borrower and any other person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, 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 loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lenders 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 Agreement are joint and several. PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: Z S Seal) anager of Stone House Auto Sam, Ltd LENDER: GRAY NE BANK, A DIVISION GRAY ONE W NK H t . Ha ice Presid IASER PRO L MgN . V­ 5b5A0�005 ro - Xa d rmentlel Solutim¢. Ix 1987, 2011. M Rge,s ReFerveE. • PA c1PRO5UfTElLFAlPL1OZOL.FL 7A•26I5 PR1 CHANGE IN TERMS AGREEMENT Borrower: Stone House Auto Sales, LLC Lender: Graystone Bank, a Division of Graystone Tower Bank 7086 Carlisle Pike Capital Region Carlisle, PA 17013 112 Market Street Harrisburg, PA 17101 Principal Amount: $234,920.03 - Date of Agreement: August 17, 2011 DESCRIPTION OF EXISTING INDEBTEDNESS. On January 23, 2009, Borrower executed and delivered to Lender a Promissory Note in the original Principal Amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) ( "Note ") with a subsequent Change in Terms Agreement dated May 17, 2011 to temporarily increase the Note to Two Hundred Thirty Five Thousand and 00/100 ($235,000.00) until August 1, 2011. Interest is currently calculated at a Variable Rate of Lender's Prime Rate plus 1.50% with a 6.00% interest rate floor and is payable in interest only payments with principal due on Lenders demand. As of the date of this Agreement the outstanding principal balance is Two Hundred Thirty Four Thousand Nine Hundred Twenty and 03/100 ($234,920.03). DESCRIPTION OF CHANGE IN TERMS. Effective the date of this Agreement and as provided below, Lender and Borrower have agreed to term out the principal balance over ten (10) years at an initial five (5) year fixed interest rate of 5.49 %. PROMISE TO PAY. Stone House Auto Sales, LLC ( "Borrowerl promises to pay to Graystone Bank, a Division of Graystone Tower Bank ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Two Hundred Thirty-four Thousand Nine Hundred Twenty & 03/100 Dollars ($234,920.03), together with interest on the unpaid principal balance from August 17, 2011, until paid in full. PAYMENT. Subject to any payment changes resulting from changes in the Index, Borrower will pay this loan in accordance with the following payment schedule: Principal and interest are due and payable in 60 equal consecutive monthly principal and interest installments of $1,928.42 each, commencing on September 17, 2011 and ending August 17, 2016 (payment based on a 180 -month amortization). From the date hereof until August 17, 2016 ( "Initial Fixed Rate Period ") interest will be fixed at 5.49°/x. Thereafter, the interest rate shall be re- negotiated to a new fixed rate offered by Lender in its sole discretion (and agreed to by Borrower), or the rate will revert to Graystone Tower Bank's Prime Rate (as defined in Variable Interest Rate below) plus 1.00% with a 5.00% interest rate floor. After the Initial Fixed Rate Period and based on the subsequent change in interest rate, the monthly payment shall be changed to an amount sufficient to amortize the unpaid principal balance over the remaining amortization period of 120 months. Such payments shall commence September 17, 2016 and shall continue until Maturity. All unpaid principal together with any unpaid interest and late charges will be due and payable at maturity, August 17, 2021. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any late charges; and then to any unpaid collection costs. Borrower will pay Lender 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 loan is subject to change from time to time based on changes in an index which is Lenders Prime Rate (the "Index "). This is the rate Lender charges, or would charge, on 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well. Interest on the unpaid principal balance of this loan will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 1.000 percentage point over the Index. NOTICE: Under no circumstances will the interest rate on this loan 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 loan 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 loan is computed using this method. PREPAYMENT PENALTY. Upon prepayment of this Agreement, Lender is entitled to the following prepayment penalty: A prepayment fee will be charged if the Note is prepaid, in whole or in part, during the fixed rate period. The fee will be calculated at two percent (2 %) of the principal amount prepaid.: A prepayment fee -will not be charged on any amount (up to 10% of the current principal amount) prepaid within any loan year from internally generated funds. The term "loan year" is defined as any period of one year commencing on the closing date or any anniversary date thereafter. Except for the foregoing, Borrower may pay 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 Agreement, 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: GRAYSTONE TOWER BANK, 1826 Good Hope Road Enola, PA 17025. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 10.000% of the regularly scheduled payment or $250.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be increased by adding an additional 2.000 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. If judgment is entered in connection with this Agreement, 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 under this Agreement: Payment Default Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement 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. False Statements. Any warranty, representation or statement made or fumished to Lender by Borrower or on Borrower's behalf under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes CHANGE IN TERMS AGREEMENT Loan No: 4000006852 (Continued) Page 2 false or misleading at any time thereafter. Death or Insolvency. The dissolution of Borrower (regardless of whether election to continue is made), any member withdraws from Borrower, or any other termination of Borrowers existence as a going business or the death of any member, the insolvency of Borrower, the appointment of a receiver for any part of Borrowers 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 Indebtedness. This includes a garnishment of any of Borrowers 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. Adverse Change. A material adverse change occurs in Borrowers financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. 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 Agreement within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lenders 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 Agreement 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 Agreement if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lenders reasonable attorneys' fees and Lenders 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 trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Agreement 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 Agreement has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lenders request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrowers 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. CONTINUING VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement does not waive Lenders right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain as liable parties all makers and endorsers of the original nbli ations ; including accommodation artiest unless -a a as ex ressl released b Lender- in Any maker 9 O 9 P P rtY P Y' Y g. maer or y _.. endorser, including accommodation makers, will not be released by virtue of this Agreement. If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge that this Agreement is given conditionally, based on the representation to Lender that the non - signing party consents to the changes and provisions of this Agreement or otherwise will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all such subsequent actions. SUCCESSOR INTERESTS. The terms of this Agreement shall be binding upon Borrower, and upon Borrowers heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. MISCELLANEOUS PROVISIONS. If any part of this Agreement cannot be enforced, this fact will not affect the rest of the Agreement. Lender may delay or forgo enforcing any of its rights or remedies under this Agreement without losing them. Borrower and any other person who signs, guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement, 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 loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lenders 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 Agreement are joint and several. If any portion of this Agreement is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Agreement. 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 AGREEMENT AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS AGREEMENT AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, 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 AGREEMENT OR A COPY OF THIS AGREEMENT VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS CHANGE IN TERMS AGREEMENT Loan No: 4000006:852 (Continued) Page 3 AGREEMENT 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 AGREEMENT. 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 AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. THIS AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: STONE HOUSE AUTO SALES, LLC g (Seal) Donald S. or, a er a Auto Sales, LLC LENDER: GRAYST BANK, A DIVISION aYST WE B A X H&16 a , ce a ode USER PRO Unn V. V_ S.S .10.01 Cop. m­ FYu l SduOwn, 1— 1991, 2011. All Rjgh a Aesvnel - PA cVR0SU1TE%CFILLP =0C.FC TR -2615 PR -1 EXHIBIT "D" Susquehanna "" t 91 7199 9991 7030 4486 1087 VIA 1 CLASS AND CERTIFIED MAIL RETURN RECEIPT REQUESTE]§usquehanna Bancshares, Inc. 307 International Circle Suite 600 March 27, 2013 Hunt Valley, MD 21030 -1376 Stone House Auto Sales LLC Donald S. Failor Michele Failor 429 Dark Hollow Road Shermansdale, PA 17090 RE: Loan number 4000006852 in the original principal amount of $200,000.00, secured by a Mortgage and an Assignment of Rents on Real Property commonly known as 7086 Carlisle Pike, Mechanicsburg, PA, a Mortgage on Real Property commonly known as 429 Dark Hollow Road, Carroll, PA, and a Mortgage on Real Property commonly known as 407 Third Street, Enola, PA. The loan is also secured by UCC filings on all Inventory, Chattel Paper, Accounts, Equipment and General Intangibles. Pursuant to the terms and provisions of a Promissory Note, a Change In Terms Agreement dated December 23, 2010, which increased the loan to a principal balance of $235,000, along with other Change In Terms agreements dated February 18, 2011, May 17, 2011, August 17, 2011, a Business Loan Agreement, a Commercial Security Agreement and various related documents dated January 23, 2009 (collectively, the "Loan Documents ") between Stone House Auto Sales, LLC, as borrower(s), and Donald S. Failor and Michele Failor as guarantor(s) and Susquehanna Bank (successors by merger of Graystone Bank) as. lender, this letter is to advise you that: 1) You are in default under the Loan Documents for failure to make payments when and as due under the terms thereof on January 17, 2013, February 17, 2013 and March 17, 2013. Consequently, the Lender has exercised our rights to declare all amounts outstanding under the Loan Documents to be immediately due and payable. 2) As of March 27, 2013, the balance outstanding under the Loan Documents is $231,438.20 and will accrue interest daily in the amount of $33.81552 everyday thereafter. The Lender hereby demands that you pay the amounts set forth by certified check, cashier's check or wire transfer and should be directed to Susquehanna Bank, 307 International Circle, Suite 307, Hunt Valley, MD 21030, Attn: Denise Aherne- Venzke. 3) Only the amount to cure the default in full will be accepted. NO PARTIAL PAYMENT WILL BE ACCEPTED!! 4) You will be liable for any and all costs of collection in accordance with the Loan Documents. In addition, confessed judgment and liquidation of the collateral may take place. 5) Neither the contents of this letter nor the acceptance of late and partial payments shall constitute a waiver of the Bank's rights, remedies and recourse under the Loan Documents. Susquehanna Bank (successors by merger of Graystone Bank) specifically reserves all rights, remedies and recourse under the Loan Documents, applicable law and otherwise. Sin rel �G Denise Aherne - Venzke Vice President Workout Manager Susquehann a 91 7199 9991 7030 4486 1070 VIA IST CLASS MAIL AND CERTIFIED MAIL RETURN RECEIPT REQUESTEo usquehanna Bancshares, Inc. 307 International Circle Suite 600 March 27 , 2013 Hunt Valley, MD 21030 -1376 Stone House Auto Sales LLC Donald S. Failor Michele Failor 429 Dark Hollow Road Shermansdale, PA 1.7090 RE: Loan number 4000006852 in the original principal amount of $200,000.00, secured by a Mortgage and an Assignment of Rents on Real Property commonly known as 7086 Carlisle Pike, Mechanicsburg, PA, a Mortgage on Real Property commonly known as 429 Dark Hollow Road, Carroll, PA, and a Mortgage on Real Property commonly known as 407 Third Street, Enola, PA. The loan is also secured by UCC filings on all Inventory, Chattel Paper, Accounts, Equipment and General Intangibles. Pursuant to the terms and provisions of a Promissory Note, a Change In Terms Agreement dated December 23, 2010, which increased the loan to a principal balance of $235,000, along with other Change In Terms agreements dated February 18, 2011, May 17, 2011, August 17, 2011, a Business Loan Agreement, a Commercial Security Agreement and various related documents dated January 23, 2009 (collectively, the "Loan Documents ") between Stone House Auto Sales, LLC, as borrower(s), and Donald S. Failor and Michele Failor as guarantor(s) and Susquehanna Bank (successors by merger of Graystone Bank) as lender, this letter is to advise you that: 1) You are in default under the Loan Documents for failure to make payments when and as due under the terms thereof on January 17, 2013, February 17, 2013 and March 17, 2013. Consequently, the Lender has exercised our rights to declare all amounts outstanding under the Loan Documents to be immediately due and payable. 2) As of March 27, 2013, the balance outstanding under the Loan Documents is $231,438.20 and will accrue interest daily in the amount of $33.81552 everyday thereafter. The Lender hereby demands that you pay the amounts set forth by certified check, cashier's check or wire transfer and should be directed to Susquehanna Bank, 307 International Circle, Suite 307, Hunt Valley, MD 21030, Attn: Denise Aherne - Venzke. 3) Only the amount to cure the default in full will be accepted. NO PARTIAL PAYMENT WILL BE ACCEPTED!! 4) You will be liable for any and all costs of collection in accordance with the Loan Documents. In addition, confessed judgment and liquidation of the collateral may take place. 5) Neither the contents of this letter nor the acceptance of late and partial payments shall constitute a waiver of the Bank's rights, remedies and recourse under the Loan Documents. Susquehanna Bank (successors by merger of Graystone Bank) specifically reserves all rights, remedies and recourse under the Loan Documents, applicable law and otherwise. S / ince ly �% f Q Denise Aherne- Venzke Vice President Workout Manager VERIFICATION I, DENISE AHERNE- VENZKE, being duly affirmed according to law, depose and say that I am Vice President for Susquehanna Bank; that I am authorized to make this Verification on its behalf and that the facts set forth in the foregoing Complaint are true and correct to the best of my knowledge, information, and belief. To the extent that any of the averments in the foregoing document are based upon the understanding or application of law, I have relied upon counsel in making this Verification. This Verification is made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unsworn falsification to authorities. Date: Denise Aherne - Venzke 3935462 -1 2813 JUL 26 PM 1 14 CUF BERLA�'o COUNTY BARLEY SNYDER P P S YLONIA William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 74001 50 North Fifth Street, P.O. Box 942 Reading, PA 19603 -0942 (610) 376 -6651 Attorney for Plaintiff SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION — LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT Defendant No. CERTIFICATE OF RESIDENCE PA. R.C.P. 236 I, Keith Mooney, Esquire, Attorney for the Plaintiff, hereby certify to the best of my knowledge, information and belief that the name and current address of each party is as follows: The address of the Plaintiff, Susquehanna Bank, is 307 International Circle, Suite 600, Hunt Valley, MD 21030 -1376. The registered address for the Defendant, Stone House Auto Sales, LLC, is 7086 Carlisle Pike, Carlisle, PA 17013. Respectfully submitted, BARLEY SNYDER ell By: William F. Colby, Jr. Esquire Keith Mooney, Esquire Attorney for Plaintiff 3935462 -1 i�; BARLEY SNYDER� �� 2 William F. Colby, Jr., Esquire H Keith Mooney, Esquire ME /4� i D COUNT Court I.D. No. 46880; 74001 PENNY YLI%, NIA 50 North Fifth Street, P.O. Box 942 Reading, PA 19603 -0942 (610) 376 -6651 Attorney for Plaintiff SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION — LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT Defendant / �" � �Ul No. NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON NOTICE OF DEFENDANTS' RIGHTS TO: STONE HOUSE AUTO SALES, LLC DATE: JULY 2013 A judgment in the amount of Two Hundred Fifty -four Thousand Six Hundred Forty -six Dollars and Fifty -five Cents ($254,646.55), plus interest at the per diem rate of $33.54, from July 10, 2013, and costs of collection has been entered against you and in favor of the Plaintiff, Susquehanna Bank, 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 3935462 -1 DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 34 S. Bedford Street Carlisle, Pennsylvania 717- 249 -3166 Respectfully submitted, BARLEY SNYDER By d William F. Colby, Jr., Es ire Keith Mooney, Esqu' Attorney for Plaintiff 3935462 -1 SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION — LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT Defendant No. 3 - wo? U (X) Notice is hereby given that a judgment in the above - captioned matter has been entered against you in the amount of $ 254,646.55, on July Ot (0, 2013. (X) A copy of all documents filed with the Prothonotary in support of the within judgment are enclosed. w kr Protho ary CiviDivision By: If you have any questions regarding this Notice, please contact the filing party: NAME: William F. Colby, Jr. Esquire Keith Mooney, Esquire Barley Snyder ADDRESS: 50 North Fifth Street P.O. Box 942 Reading, PA 19603 TELEPHONE:(610) 376 -6651 (This Notice is given in accordance with Pa.R.C.P.236.) NOTICE SENT TO: NAME: Stone House Auto Sales, LLC 7086 Carlisle Pike Carlisle, PA 17013 3935462 -1 rs i fON0 % f V 1 UL 26 P11 1: 06 CUMIXIRL AND COU14Ty PENWsYLVAN1A BARLEY SNYDER William F. Colby, Jr., Esquire Keith Mooney, Esquire Court I.D. No. 46880; 74001 50 North Fifth Street, P.O. Box 942 Reading, PA 19603 -0942 (610) 376 -6651 Attorney for Plaintiff SUSQUEHANNA BANK SUCCESSOR COURT OF COMMON PLEAS OF TO GRAYSTONE BANK CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. CIVIL ACTION — LAW STONE HOUSE AUTO SALES, LLC, CONFESSION OF JUDGMENT I Defendant No. ! � Yv.7o bl ENTRY OF APPEARANCE Kindly enter the appearance of William F. Colby, Jr., Esquire, Keith Mooney, Esquire, Barley Snyder on behalf of Plaintiff, Susquehanna Bank, in the above - captioned matter. Serve all papers at 50 North Fifth Street, 2nd Fl., P.O. Box 942, Reading, PA 19603 -0942. Respectfully submitted, BARLEY SNYDER By William F. Colby, Jr., Esqui Keith Mooney, Esquire Attorney for Plaintiff 3935462 -1 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Otp C— C�- Jody S Smith -0 Chief Deputy M C= Richard W Stewart Solicitor OFF10E rT THE SPERIFP C--) C-) C:) Susquehanna Bank Successor to Graystone Bank Casg'�Numler vs. 2013-4432 Stonehouse Auto Sales, LLC SHERIFF'S RETURN OF SERVICE 08/07/2013 01:35 PM- Deputy William Cline, being duly sworn according to law, served the requested Complaint in Confession of Judgment and Notice Under Rule 2958.1 by handing a true copy to a person representing themselves to be Don Failor, Owner, who accepted as"Adult Person in Charge"for Stonehouse Auto Sales, LLC at 7086 Carlisle Pike, Silver Spring, Carlisle, PA 17013. /JY—Z-- WILL'TAm CLINE, DEPUTY SHERIFF COST: $34.78 SO ANSWERS, August 08, 2013 RbNNi(R ANDERSON, SHERIFF (c)CountySuiw Sheriff,Toleosoft.Inc.