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Home My WebLink About14-1046 Supreme Couft of,Pennsylvania COUrt,:OfaCommonTleas For Prothonotary Use Only: !. Civ><I e Sheet CU,1 .c. a Docket No: 1 ERLANt� Count .� The information collected on this form is used solely for court adnzinis17-06017 purposes. Thus fornt does not supplement or replace the filing and service of pleadings or other papers as required by law or rules of courl. Commencement of Action: S El Complaint 0 Writ of Summons 0 Petition Transfer from Another Jurisdiction Declaration of Taking E C Lead Plaintiff's Name: Lead Defendant's Name: Integrity Bank Capitol Property Management, Inc. I Are move dam requested? p Yes No Dollar Amount Requested: ]within arbitration limits Y g 4 (check one) !x outside arbitration limits 0 N Is this a Class Action Suit? 0 Yes 0 No Is this an MDJAppeal? 0 Yes El No A Name of Plaintiff /Appellant's Attorney: Clayton W. Davidson 0 Check here if you stave no attorney (are a Seff- Represented (Pro Se) Litigant) Nature of the Case Place an "X" to the left of the ONE case category that most accurately describes your PRIMARY CASE. If you are making more than one type of claim, check the one that you consider most important. TORT (do not include Mass Tort) CONTRACT (do not include Judgments) CIVIL APPEALS 0 Intentional 0 Buyer Plaintiff Administrative Agencies 0 Malicious Prosecution 0 Debt Collection: Credit Card 0 Board of Assessment 0 Motor Vehicle Debt Collection: Other 0 Board of Elections Nuisance 0 Dept. of Transportation Premises Liability 0 Statutory Appeal: Other S Product Liability (does not include 0 Employment Dispute: E mass fort) Slander/Libel/ Defamation Discrimination 0 C Other: Employment Dispute: Other 0 Zoning Board � Other: , I E3 Other: O MASS TORT 0 Asbestos N F1, Tobacco 0 Toxic Tort -DES 0 Toxic Tort - Implant REAL PROPERTY MISCELLANEOUS Toxic Waste Ejectment Other: (3 Common LawlStatutory Arbitration B ( Eminent Domain /Condemnation 0 Declaratory Judgment 0 Ground Rent 0 Mandamus Landlord/Tenant Dispute 3 Non - Domestic Relations Mortgage Foreclosure: Residential Restraining Order PROFESSIONAL LIABLITY Mortgage Foreclosure: Commercial 0 Quo Warranto 0 Dental 0 Partition 0 Replevin 0 Legal E3 Quiet Title 0 Other: Medical 0 Other: Other Professional: Updated 1/1/2011 Clayton W. Davidson '' PA Attorney I.D. No. 79139'' ' AND CoUt 1 McNees 00 ine Street Wallace P.O. Box 166 PENtgS'Q Apo 4 Harrisburg, PA 17108 -1166 (717) 260 -1678 (Direct Fax) (717) 232 -8000 (Phone) cdavidson(a,mwn.com Attorneys for Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. CAPITOL PROPERTY MANAGEMENT, INC., Defendants : CIVIL ACTION - LAW NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. 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 32 South Bedford Street Carlisle, PA 17013 (717) 249 -3166 or (800) 990 -9108 vak q.1_ AVISO USTED HA SIDO DEMANDADO /A EN CORTE. Si usted desea defenderse de las demandas que se presentan mds adelante en las siguientes pdginas, debe tomar accion dentro de los proximos veinte (20) dias despues de la notificacion de esta Demanda y Aviso radicando personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier otra reclamacidn o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mds aviso adicional. Usted puede perder dinero o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA PUEDE PROVEERLE 1NFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO. SI USTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE CUALIFICAN. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249 -3166 or (800) 990 -9108 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) cdavidsonkmwn.com Attorneys for Integrity Bank INTEGRITY BANK, IN THE COURT OF COMMON PLEAS OF Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA V. NO. CAPITOL PROPERTY MANAGEMENT, INC., Defendant : CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE Plaintiff, Integrity Bank, by and through its undersigned counsel, hereby files this Complaint in Mortgage Foreclosure pursuant to Pa.R.C.P. No. 1141, et seq., and in support thereof avers the following: 1. Plaintiff, Integrity Bank ( "Bank "), is a Pennsylvania banking institution with its principal place of business at 3345 Market Street, Camp Hill, Pennsylvania 17011. 2. Defendant, Capitol Property Management, Inc., is a Pennsylvania corporation with a business address at 110 3` Street, Suite 200, New Cumberland, Pennsylvania 17070. 3. This Court has jurisdiction over this matter pursuant to 42 Pa.C.S.A. § 931(a). 4. This Court is the proper venue for this matter pursuant to 42 Pa.C.S.A. § 931(c) and Pa.R.C.P. No. 11142 because the real property in question is located in Cumberland County, Pennsylvania. 5. On June 10, 2005, the Bank loaned Capitol Property Management, Inc. and Capitol Renovation & Supply, Inc. the sum of $500,000.00 (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). 6. On June 10, 2005, to secure the payments due under the Note, Borrower executed and delivered to Bank a mortgage as modified from time to time (the "Mortgage ") against certain real property known as 110 3 rd Street, Borough of New Cumberland, Pennsylvania (as further described in Deed Book 164, Page 742; parcel ID no. 25 -25- 0006 -312), 213 Market Street, Borough of New Cumberland, Pennsylvania (as further described in Deed Book 240, Page 156; parcel ID no. 25 -25- 0006 -320) and 207 Walnut Alley, Borough of New Cumberland, Pennsylvania (as further described in Deed Book 240, Page 156; parcel ID no. 25 -25- 0006 -326) (collectively, the "Property "), which was recorded in the Office of the Cumberland County Recorder of Deeds on June 29, 2005 in Book 1912, Page 3145. Attached hereto as Exhibit B and incorporated herein by reference is a true and correct copy of the Mortgage. 7. On January 5, 2012, the Bank refinanced the Loan with Capitol Property Management, Inc. ( "Borrower ") to term out the remaining balance of the Loan in the amount of $745,490.94 (still known as "Loan ") pursuant to a Promissory Note (the "Refinanced Note," together with Note, the "Note "). Attached hereto as Exhibit C and incorporated herein by reference is a true and correct copy of the Refinanced Note (less any applicable tax identification numbers), 8. Borrower has defaulted under the Note by failing to make the payments when due thereunder since on or before July 10, 2013. 9. The amounts due under the Note and the Mortgage have been accelerated as a result of the payment defaults by the Borrower and as of January 3, 2014, the amounts due and owing thereunder are itemized as follows: Principal: $609,477.00 Accrued Interest: $ 19,402.84 Late Fees $ 4,254.21 Other Fees $ 90.50 Total: $633,224.55* *along with interest accruing at the current per diem rate of $101.410200833 from January 3, 2014 until paid in full, plus costs (the "Indebtedness "). 10. Judgment has not been entered on the Mortgage in any jurisdiction. 11. The Note and Mortgage have not been assigned and are still held by Bank. 12. The Mortgage is not a residential mortgage for purposes of sections 403 and 404 of the Act of January 30, 1974 (P.L. 13, No. 6), 41 P. S. 101 et seq. 13. Pursuant to Pa.R.C.P. No. 1019(h), this action is based upon a breach of the written Mortgage. 14. Bank demands judgment against Borrower in mortgage foreclosure for the Indebtedness so Bank may sell the Real Property in an attempt to satisfy the Indebtedness. WHEREFORE, Plaintiff, Integrity Bank, demands judgment in mortgage foreclosure against Capitol Property Management, Inc., in the sum of $633,224.55, along with interest accruing after January 3, 2014 at the per diem rate of $$101.410200833 , costs and additional reasonable attorneys' fees as allowed by law for costs of collection until the Indebtedness is paid in full. McNEES WALLACE & NURICK LLC Date: February 21, 2014 By: 4/ -- ClaytodW. Davids Ko7913 PA Attorney I.D. 9 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 Plaintiff, Integrity Bank VERIFICATION I, E. Dennis Ginder, Senior 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. E. Dennis Ginder, Senior Vice President �1 � ` �� ,� PROMISSORY NOTE ::::.:::::::::::.::.:::::.:::::.::::::::.:.:::....:..:.:..:..... ............................... »: »' gxfrl :..............::::.::: r� fat .............. :::.:. :_............: .............:... :.......................................................::::............................ ............................... 31..... .........................alr.f_ dot...................... ..........GG!4..._t..........., .. ::. :.:, ::....:....:...:::.... :.... ..............,. „ : ....r .::.:.:.:.:.::...:.:....................... .. :•.:::::::....:.:::.::,.::.., :.::•:::.... ..fit . ...............�.. :...:�(� . :::.. �... . - ....,... : :::::::::::.;::: >::;�:;;:;::: :•:::::::::...... :....... ,-:.:. �::..:..... ...................,......._ -�. .::: >::::. r> '?:.,., :.:.,;.:...::.::::.::: References in the shaded area 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 ITitted due to text length limitations. Borrower: Capitol Pronertv management, Inc. ender: Integrity Bank Camp Hill Office Capitol Renovation & Stipply, Inc. 09 3345 Market Street 110 3rd Street, Suite 200 Camp Hill, 17011 New Cumberland, PA 17070 (717) 920 -4499 00 Principal Amount: $500,000.00 Initial Rate: 5.250% Date of Note: June 10, 2005 PROMISE TO PAY. Capitol Property Management, Inc.; and Capitol Renovation & Supply, Inc. ( "Borrower ") jointly and severally promise to pay to Integrity Bank ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Five Hundred Thousand & 00/100 Dollars (5500,000.00), together with interest on the unpaid principal balance from June 10, 2005, until paid in full. PAYMENT. Borrower will pay this loan in one principal payment of $500,000.00 plus interest on June 10, 2006. This payment due on June 10, 2066, will be for all principal and all accrued interest not yet paid. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning July 10, 2005, 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 unpaid collection costs; and then to any late charges. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual 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. Borrower will pay Lender at Lender's address shown above or at Stich 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 Wall 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 notice to Borrower. 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 Index currently is 6.000% per annum. The interest rate to be applied to the unpaid principal balance of this. Note will be at a rate of 0.750 percentage points under the Index, resulting in an initial rate of 5.250% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. 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. 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, Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011. LATE CHARGE. If 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, Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note 5.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. 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. 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 PROMISSORY NOTE- _ (Continued) Page 3 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 13E 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, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH 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: CAPITOL P Y A1111 NT, INC Y:..............:......... :................ .. ........ ....... ....... .... ..,...........1Seal) Eric J. sros ers, President of Capitol Property Management, Inc. CAPITOL RE ATION P , INC. B �S eal Eric J. D ros ers, Frieisident of Capitol Renovation & Supply, Inc. LENDER: INTEGRI NK X u otized Signer USER PRO L V.. 5.25.00.005 Cap.. N.Md F-10 gal M.& Lro 1997. 2005. AN NO- A. .d. . PA KACFl1WID2QPC TA-937 PR -13 IN TERMS AGREEIV6 JT c p ...... .. ..... ...... ............ ............. . ................. J . . . . . . . . . . . . ...... .... .. . References in the shaded area 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: Capitol ProDertv Management, Inc Lender: Integrity Bank Camp Hill Office Capitol Renovation & Supply, Inc. 3345 Market Street Camp Hill, PA 17011 i iu 3rd Street, Suite 200 (717) 920-4900 New Cumberland, PA 17070 Principal A mount: $500,000.00 Initial Rate: 5.500% Date of Agreement: ��4 A- I, AOY DESCRIPTION OF EXISTING INDEBTEDNESS. Line of Credit in the amount of $500,000.00. DESCRIPTION OF COLLATERAL. First mortgage lien on real estate located at 110 N. Third St., New Cumberland, PA. Second mortgage lien on real estate located at 808 Michigan Drive, Lemoyne, PA. Second mortgage lien on real estate located at 207 Walnut Alley and 213 Market Street, New Cumberland, PA. DESCRIPTION OF CHANGE IN TERMS. This line of credit is increased from $500,000.00 to $750,000.00. The Bank is also taking additional collateral because of the increase. A second lien mortgage will be filed on the personal residence of Eric J. Derosiers located at 808 Michigan Drive, Lemoyne, Cumberland County, Pennsylvania. PROMISE TO PAY. Capitol Property Management, Inc.; and Capitol Renovation & Supply. Inc. ("Borrower") jointly and severally promise to pay to Integrity Bank ("Lender"), or order, In lawful money of the United States of America, the principal amount of Five Hundred Thousand & 00/100 Dollars ($500,000.00), together with interest on the unpaid principal balance from June 10, 2005, until paid in full. PAYMENT. Borrower will pay this loan In one principal payment of $500,000-00 Plus interest on June 10, 2006. This payment due otOune 10, 2006, will be for all principal and all accrued interest not yet paid. In addition, Borrower will pay regular monthly payments of all accrued unpaid Interest due as of each payment date, beginning *July 10, 2005, 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 unpaid collection costs; and then to any late charges. Interest on this Agreement is computed on a365/360 simple interest basis: that is, by applying the ratio of the annual 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. 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 Agreement 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 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 New York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shall float at Now 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 notice to Borrower. 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 Index currently is 6.250% per annum. The Interest rate to be applied to the unpaid principal balance of the Note will be at a rate of 0.750 percentage points under the Index, resulting in an Initial rate of 5.500% per annum. NOTICE: Under no circumstances will the interest rate on the Note be more than the maximum rate allowed by applicable law. 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. 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: integrity Bank, Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011. LATE CHARGE. If 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, Lender, at its option, may, if permitted under applicable taw, increase the variable interest rate on this Agreement 5.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Agreement, interest will continue to accrue on this Agreement after judgment at the interest rate applicable to this Agreement at the time judgment is entered. 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. Default in Favor of Third Parties. Borrower defaults under any loon, 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 perform Borrower's obligations under this Agreement 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 Agreement 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 .s CHANGE IN TERMS AGREEMENI (Continued) Page 3 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 (55001 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 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, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH 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: CAPITOL PROPERTY GEM ENT, Seal) . . :; S ;:; i '.s S�: ... asii` 2�2 <si.:::ii >�:'�.:::il'±e'ii � <i�i2S < <... ) Eric J. esrosters, President of Capitol Property Management, Inc. CAPITOL RENOVATI UPPLY, INC. ,,,..,,Seal S B Y:` 1 ) Eric slirs, President of Capitol Renovation & Supply, Inc. LENDER: INTEGRITY BANK X �r a o ert K. Day, Vice Pr sid'ent IASM PRD (.end o. V- 5.2&00.04 CW. Nw1erW H—IA 9obAl -- 1997. 200& AS RI9Ab Pea d. . PA KN1NDING%Ci1LLRb20C.FC TR -927 M13 �. ANGE IN TERMS AGREEME( ............... ............................... References in the shaded area 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: Capitol Property Management, Inc Lender Integrity Bank Camp Hill Office Capitol Renovation & Supply, Inc. 3345 Market Street Camp Hill, PA 17011 110 3rd Street, Suite 200 (717) 920 -4900 New Cumberland, PA 17070 Principal Amount: $750,000.00 Initial Rate: 7.500% Date of Agreement: 27 -o'] DESCRIPTION OF CHANGE IN TERMS. The original maturity date of March 10, 2007 will be extended to March 10, 2008. PROMISE TO PAY. Capitol Property Management, Inc.; and Capitol Renovation & Supply, Inc. ( "Borrower ") jointly and severally promise to pay to Integrity Bank ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Seven Hundred Fifty Thousand & 00/100 Dollars (5750,000.00), together with interest on the unpaid principal balance from June 10, 2005, until paid In full. PAYMENT. Borrower will pay this loan in one principal payment of $750,000.00 plus interest on March 10, 2008. This payment due on March 10, 2008, will be for all principal and all accrued interest not yet paid. In addition, Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning July 10, 2005, 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 unpaid collection costs; and then to any late charges. Interest on this loan is computed on a 365/360 simple Interest basis; that is, by applying the ratio of the annual 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. 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 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 Wall 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 Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 8.250% per annum. The interest rate to be applied to the unpaid principal balance during this loan will be at a rate of 0.750 percentage points under the Index, resulting in an initial rate of 7.500% per annum. NOTICE: Under no circumstances will the Interest rate on this loan be more than the maximum rate allowed by applicable law. 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. 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: Integrity Bank, Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011. LATE CHARGE. If 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 loan shall be increased by adding a 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. 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. Default in Favor of Third Parties. Borrower 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 perform Borrower's obligations under this Agreement 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 Agreement 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 Indebtedness. 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 CHANGE IN TERMS AGREEMENT (Continued) Page 2 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. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. 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 the Indebtedness 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 Agreement within the preceding twelve (12) months, it may be cured if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) 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 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, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including 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,. : x#te,right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. (Initial Here % 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 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 $10.00 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 Agreement is secured by First mortgage lien on 110 North Third Street, New Cumberland, Cumberland County, Pennsylvania and a second mortgage lien on 207 Walnut Alley and 213 Market Street, New Cumberland, Cumberland County, Pennsylvania and an assignment of rents . 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 term§ 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. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non - judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e) 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 Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. 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, 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. HANGE IN TERMS AGREEMENT (Continued) Page 3 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 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, EACH BORROWER READ AND UNDERSTOOD ALL THE -PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH 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: CAPITOL RTY E NT, INC B y: ZA" Seal : i ) Eric J. esroslers, President of Capitol Property Management, Inc. CAPITO VATI UPPLY INC. Eric 4. 94sroslers, resident of Capitol Renovation & Supply, Inc. LENDER: INTEGRITY NK X h 0/7 Rdbeft K. Day, Senior Vice resident LASER PRO Lmding. Vr. S.33.OD.001 Cop. HwLmd FF—W iok,"M , Ina 1897. 2007. A8 Ripnb F v,A. - PA K.'U k01KMCFRlPL%V20C.FC 78-877 PR-13 ANGE IN TERMS AGREEMEP .._............_... .� ..... }� urn :...::.........:.:.,.::::. � :.,,.�:.::.:.,.:.:::. .; .;:: ...........,......::.., :.:.. +1%:1..i�� .�•tii'......... . . ........... ................... :... :.:•:..::.::::::::•:•:::•:::::: •: :::::::.::::.......,.., :.:....: ibi{::�: ?•�: :E :: ?;:si ?�ii "ta <': >iirs 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 it above containing "•••" has been omitted due to text length limitations. Borrower: Caottol Property Management Inc. Lender Integrity Bank Capitol Renovs+++�.+ ¢ S Camp Hill Office Ca p upply, Inc. 3345 Market Street Camp Hill, PA 17011 I iv Jrd Street, Suite 200 (717) 920 -4900 New Cumberland, PA 17070 Principal Amount: $750000:00 Initial Rate: 5.250% Date of Agreement: 3 • '� - �e� DESCRIPTION OF CHANGE IN TERMS. This loan is now on Demand, to be reviewed annually starting on December 15, 2008. PROMISE TO PAY. Capitol Property Management, Inc.; and Capitol Renovation & Supply, Inc. ( "Borrower ") jointly and severally promise to pay to Integrity Bank ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Seven Hundred Fifty Thousand & 00/100 Dollars ($750,000.00), together with interest on the unpaid principal balance from June 10, 2005, until paid in full. PAYMENT. Borrower will pay, this ban in one principal payment of $760,000.00 plus interest on December 15, 2008. This payment due on December 16, 2008, will be for all principal and all accrued Into not yet paid. In addition, Borrower will pay regular monthly payments of all accrued unpaid Interest due as of each payment date, beginning July 10, 2005, 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 t principal; then to any unpaid collection costs; and then to any late charges. Interest on this loan is computed on a 365/360 simple Interest basis; that is, by. applying the ratio of the annual 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. 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 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 Wall 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 Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 6.00096 per annum. The interest rate to be applied to the unpaid principal balance during this loan will be at a rate of 0.750 percentage points under the Index, resulting in an initial rate of 5.250% per annum. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum rate allowed by applicable law. 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 ail or a portion of the amount owed earlier then 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. 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 frill satisfaction of a disputed amount must be mailed or delivered to: Integrity Bank, Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011. LATE CHARGE. If 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 loan shall be increased by adding a 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. 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 falls 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. Default in Favor of Third Parties. Borrower 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 perform Borrower's obligations under this Agreement 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 Agreement 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 Indebtedness. 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 HANGE IN TERMS AGREEMENT (Continued) Page 3 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 (5500) 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 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, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH 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: CAPITOL P AGEMENT, C. X. Seal) i ) EriC X Des • lers, Pr4fdent of Capitol Property • Manago 1 1 t, Inc. CAPITOL R ATI PPLY, INC B .i Sea I Eric J. e i , resident of Capitol R ' Awly, Inc. _AT TEST Corporate Seal Secretary or stant Secretary LENDER: INTEGRIT 4Day,(ExdcutWi o rt K. LASER PRO La r q. V.. S.33.10.001 Cop. N,AOnE FlnwcW Sokn*n,. Ina 1997. 2009. AN Riahfi As a vE. • PA K:1LfN01NOLCFR1P1W20C.FC TR -907 PR -12 DEMAND PROMISSORY NOTE Borrower: Capitol Property Management, Inc Lender: Integrity Bank Capitol Renovation & Supply, Inc. Camp Hill Office 110 3` Street, Ste. 200 3345 Market Street New Cumberland, PA 17070 Camp Hill, PA 17011 (717) 920 -4900 Principgt.Amount: $7 0,0.00.00 Interest Rate: 4.00 %° • . Date of Note:. PROMISE 10 PA C Pro M Renovation & ,9u I , ("Borrower") { 1�, a)? itol Property snag emeri t, Inc. and Capitol p { pp.y, Ina. (" ) promises.to pay to Integrity Bank j'Lrinde"',�, ororder,in lawful money 6f the United States of America, PM DEM,AIyD, the principal amount o #Seven Hundred Fifty Thousand- & 001100 Dollars ($75({,1700.00) or so,much as may be outstanding to ether with interest on the .unpaid outstanding principal. balance of each Oyanrp kerest -- SKIT be calculated fromthe'date of each advance unJit-repayment o? each advarice. , PAYMENT.- Borrower will zpay this loan Kfull immediately upon Lender's demand. Ontfl demand Is Jnade, Bg�rrrrower will pay regular monthly payments of alt accrued unpaid interesbaue as of each payment date beginning December15, 2008, with allIgubsequent interest payments to •'•: `bedue bfr the saMo day- of.each month thereafter. Unless otherwise agreed or required by applicable law, payments will be'applied first to any r armed uripaid'interest, then to principal,•then to any unpaid collectf6h costs, and then to any*late charges. The'annual interest rate for this Note, is Computed on a.S65/360 basis, that.is, by applying the ratio of the annual interest rate over a year of 360 days, multiplied by the outstan ling -princlpak balance, multiplied by the actual number of days the principal - balance is outstanding. Borrower will pay Lender at Lender's address shckwn above or at such .other place as Lender may designate in vLriting: ; ` .. DEOIA417E 6TURE'Tols loan is payable on demand, to be reviewed annually: VARIABLE. INTEREST RATE. The interest rate on thla Note is. subject to change from time to time based on;changes in an independent index. whl is the New York Prime Rate of Interest. The New York Prime. Rate of Interest.shall mean the interest �t%per annum announced from timd to time in' various business jouTals, such as The Wall' Street Journal, as the. "Prime Rate of Interest.' The New York Prime. Rate of int6est is an> index, and loans of the Bank may be .established at, above, or bejrfw the .index. N,ew York Prime Rate of interest :is not necessarily the Banff's lowest rate of interest. The interest rate. shall float at New York Prime. (the Index*). The index is not necessarily the - lowest �t8`diarged tiy`Lender on its loans: If the Index becomes unagailable a6ringahe term of tt . loan, Lender may designate a substitute index after notifying the Borrower. LeFrder will tell Borrower the current rate updh Borrowpes'request. The Interest rate change will not occur more.cften than.once.each Day: Borrower understands that Lender may make loans'based on other ryes as well. The Index currently is!4.00 %° ,{�ecannufi Tfie interest rate to be applied to the unpaid principal balancd during this•N6te will ber at a rate of 0.00% percentage points ovet:`the Jndex, riesulting in an lnftial rate of 4.00 °i6 perannum. NOTICE.' Undef no clrcurntlanoes will the 4fterest rate on this Note be more than.the maximum,rate allowed by applicable law. PREPAYMENT. Bodo iler.may pay without penalty all or a. portion .of.the amount owed earlier tlian it is due: Early payments will not, unless '. agreed to i2y�IsendeMn wilting, relieve Borrower of Borrowers obligation. to co ntinue. to make payments of accrued unpaid interest: Rather, early payments wigl r�ducg the . principal balance due. Borrower agrees not:to.send Lender payments - marked Void in full," *Without recourse," - or language. If 66RO r sends such a payment, Lender may accept it. without losing any,. Lendetfs rights under this Note, and Borrower will remain; 64119ated, to pay any further amount owed to Lender. All written communications concemiRg disputed amounts, including <, any 'check'or. other payments instrument that indicates that the paymentegnsthute6 "payment in fall" of the $mount owed or that is tendered with other conditiorts or limitations or as full satisfaction of a disputed amount must be mailed or delive)ed to:.igtegrity Bank, Camp Hill Office, 3345 Market Street, Ca`mp•Hill, PA 17011. . LATE CHARGES. 1fa regularly scheduled interest payment Is 10 days or more late, Borrower will tie charged 5.00% of the regularly, scheduled payment of- $10.00, Wh"Ichever Is greater. If Lender demands payment of this loch, and Borrower does not pay the loan in full , within 10 days after Lender's demand, Borrower also will be charged either 6: 0' of the suhi'of the rhrpaid principal plus accrued unpaid Interest ort%00,whlchever is greater. - t INTEREST AFTER. DEFAULT. If this. Note. is not paid in full within 30 days after demafid the interest rate orethis Note shall be 'increased by adding a ti;00 %. percentage . point margin ("Default gate Margin "): .The Default Rate Margin shall alsa appiyato each succeeding interest rate change that wquld.have applied had there been no demand. If judgment is entered in connection with this Note, interest will continue to accrue ` after,theidate of judgment at the rate in .effect at the time judgment is entered. However, in no event jWjll the interest rate exceed the maximum interest rate limitatign under applicable law. �. L'ENDEI 'S RIGH � Ender may; at any time, declare the entire unpaid principal .balance under this Note aqd all accrued unpaid interest immediately due, alfd ttien Borrower will pay that amount. ATTORNEY'S 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. Borrower also will pay any court costs, in addition to all other sums provided bylaw. 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 each other. 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 accepted by Lender in the Commonwealth of Pennsylvania. DEMAND PROMISSORY NOTL Loan No. (Continued) Page 2 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 $29.00 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. 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 and IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to charge or setoff all sums owing on the debt against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by a I"mortgage lien on 110 North Third Street, New Cumberland, Cumberland County, Pennsylvania and a 2" mortgage lien on 808 Michigan Drive, Lemoyne, Cumberland County, Pennsylvania, and a 1" mortgage lien on 207 Walnut Alley and 213 Market Street, New Cumberland, Cumberland County, Pennsylvania. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payments from Borrower'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 confirmed 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 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 dally 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 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 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 accommodation party of any or all of the loan. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrowers 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 effect 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 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, accommodations 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 orrelease 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 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 effect the enforceability of any other provisions of this Note. CONFESSION OF JUDGEMENT. 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 THAN 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 HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGEMENT AND STATES THAT EITHER A REPERSENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGEMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPERSENTED BY INDEPENDENT LEGAL COUNSEL. DEMAND PROMISSORY NO c Loan No. (Continued) Page 3 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. BORROWER 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: Capitol Property kwa, d apitoI Re tion & Supply, Inc. By: ' ! ice- (seal) By: (seal) A -T- {Corporate Seal) Secretary Assistan ecretary Lender: INTEGRITY A IK;l X Ro rt . Day, Executive Vice Preydent `� �, 1 1 { �{ �i i . /� �� ,' .'''r,Frj P. _1EGLER :. C0;'iDER OF DEEDS WHEN RECORDED MAIL 2005 JUN 29 HM 1136 TO: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 SEND TAX NOTICES TO: Integrity Bank Camp Hill Office 3345 Market Street Camp Hill, PA 17011 FOR RECORDER'S USE ONLY OPEN - END MORTGAGE THIS MORTGAGE SECURES FUTURE ADVANCES THIS MORTGAGE dated June 10, 2005, Is made and executed between Capitol. Property Management, Inc., whose address is 110 3rd Street, Suite 200, New Cumberland, PA 17070 (referred to below as "Grantor ") and Integrity Bank, whose address is 3345 Market Street, Camp Hill, PA 17011 (referred to below as "Lender"). GRANT OF MORTGAGE. For valuable consideration, Grantor grants, bargains, sells, conveys, assigns, transfers, releases, confirms and mortgages to Lender all of Grantor's right, title, and interest in and to the following described real property, together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all streets, lanes, alleys, passages, and ways; all easements, rights of way, all liberties, privileges, tenements, hereditaments, and appurtenances thereunto belonging or anywise made appurtenant hereafter, and the reversions and remainders with respect thereto; all water, water rights, watercourses and ditch rights (including stock in utilities with ditch or irrigation rights); and all other rights, royalties, and profits relatinq to the real property, including without limitation all minerals, oil, as, geothermal and similar matters, (the "Real Prop"") located in Cumberland County, Commonwealth of Pennsylvania: See Exhibit "A ", which is attached to this Mortgage and made a part of this Mortgage as if fully set forth herein. The Real Property or its address Is commonly known as 110 3rd Street, 213 Market Street, 207 Walnut Alley, New Cumberland, PA 17070. Grantor presently assigns to Lender all of Grantor's right, title, and interest in and to all present and future leases of the Property and all Rents from the Property. In addition, Grantor grants to Lender a Uniform Commercial Code security interest in the Personal Property and Rents, THIS MORTGAGE, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE IA) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THIS MORTGAGE, THIS MORTGAGE IS GIVEN AND ACCEPTED ON THE FOLLOWING TERMS: GRANTOR'S WAIVERS. Grantor waives all rights or defenses arising by reason of any "one action" or "anti- deficiency" law, or any other law which may prevent Lender from bringing any action against Grantor, including a claim for deficiency to the extent Lender is otherwise entitled to a claim for deficiency, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale. GRANTOR'S REPRESENTATIONS AND WARRANTIES. Grantor warrants that: (a) this Mortgage is executed at Borrower's request and not at the request of Lender; (b) Grantor has the full power, right, and authority to enter into this Mortgage and to hypothecate the Property; (c) the provisions of this Mortgage do not conflict with, or result in a default under any agreement or other instrument binding upon Grantor and do not result in a violation of any law, regulation, court decree or order applicable to Grantor; (d) Grantor has established adequate means of obtaining from Borrower on a continuing basis information about Borrower's financial condition; and (e) Lender has made no representation to Grantor about Borrower (including without limitation the creditworthiness of Borrower). PAYMENT AND PERFORMANCE. Except as otherwise provided in this Mortgage, Borrower shall pay to Lender all Indebtedness secured by this Mortgage as it becomes due, and Borrower and Grantor shall strictly perform all Borrower's and Grantor's obligations under this Mortgage. POSSESSION AND MAINTENANCE OF THE PROPERTY. Borrower and Grantor agree that Borrower's and Grantor's BOK 1912PG31 45 1 MORTGAGE (Continued) Page 2 possession and use of the Property shall be governed by the following provisions: Possession and Use. Until the occurrence of an Event of Default, Grantor may (1) remain in possession and control of the Property; (2) use, operate or manage the Property; and (3) collect the Rents from the Property. Duty to Maintain. Grantor shall maintain the Property in tenantable condition and promptly perform all repairs, replacements, and maintenance necessary to preserve its value. Compliance With Environmental Laws. Grantor represents and warrants to Lender that: (1) During the period of Grantor's ownership of the Property, there has been no use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance by any person on, under, about or from the Property; (2) Grantor has no knowledge of, or reason to believe that there has been, except as previously disclosed to and acknowledged by Lender in writing, (a) any breach or violation of any Environmental Laws, (b) any use, generation, manufacture, storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of the Property, or (c) any actual or threatened litigation or claims of any kind by any person relating to such matters; and (3) Except as previously disclosed to and acknowledged by Lender in writing, (a) neither Grantor nor any tenant, contractor, agent or other authorized user of the Property shall use, generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from the Property; and (b) any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Laws. Grantor authorizes Lender and its agents to enter upon the Property to make such inspections and tests, at Grantor's expense, as Lender may deem appropriate to determine compliance of the Property with this section of the Mortgage. Any inspections or tests made by Lender shall be for Lender's purposes only and shall not be construed to create any responsibility or liability on the part of Lender to Grantor or to any other person. The representations and warranties contained herein are based on Grantor's due diligence in investigating the Property for Hazardous Substances. Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any such laws; and (2) agrees to indemnify and hold harmless Lender against any and all claims, losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach of this section of the Mortgage or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release occurring prior to Grantor's ownership or Interest in the Property, whether or not the same was or should have been known to Grantor. The provisions of this section of the Mortgage, including the obligation to indemnify, shall survive the payment of the Indebtedness and the satisfaction and reconveyance of the lien of this Mortgage and shall not be affected by Lender's acquisition of any interest in the Property, whether by foreclosure or otherwise. Nuisance, Waste. Grantor shall not cause, conduct or permit any nuisance nor commit, permit, or suffer any stripping of or waste on or to the Property or any portion of the Property. Without limiting the generality of the foregoing, Grantor will not remove, or grant to any other party the right to remove, any timber, minerals (including oil and gas), coal, clay, scoria, soil, gravel or rock products without Lender's prior written consent. Removal of Improvements. Grantor shell not demolish or remove any Improvements from the Real Property without Lender's prior written consent. As a condition to the removal of any Improvements, Lender may require Grantor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lender's interests and to inspect the Real Property for purposes of Grantor's compliance with the terms and conditions of this Mortgage. Compliance with Governmental Requirements. Grantor shall promptly comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable to the use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Grantor may contest in good faith any such law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Grantor has notified Lender in writing prior to doing so and so long as, in Lender's sole opinion, Lender's interests in the Property are not jeopardized. Lender may require Grantor to post adequate security or a surety bond, reasonably satisfactory to Lender, to protect Lender's interest. Duty to Protect. Grantor agrees neither to abandon or leave unattended the Property. Grantor shall do all other acts, in addition to those acts set forth above in this section, which from the character and use of the Property are reasonably necessary to protect and preserve the Property. TAXES AND LIENS. The following provisions relating to the taxes and liens on the Property are part of this Mortgage: Payment. Grantor shall pay when due (and in all events prior to delinquency) all taxes, payroll taxes, special taxes, assessments, water charges and sewer service charges levied against or on account of the Property, and shall pay when due all claims for work done on or for services rendered or material furnished to the Property. Grantor shall maintain the Property free of any liens having priority over or equal to the interest of Lender under this Mortgage, l�12PG3146 MORTGAGE (Continued) Page 3 except for those liens specifically agreed to in writing by Lender, and except for the lien of taxes and assessments not due as further specified In the Right to Contest paragraph. Right to Contest. Grantor may withhold payment of any tax, assessment, or claim in connection with a good faith dispute over the obligation to pay, so long as Lender's interest in the Property is not jeopardized. If a lien arises or is filed as a result of nonpayment, Grantor shall within fifteen (16) days after the lien arises or, if a lien is filed, within fifteen (15) days after Grantor has notice of the filing, secure the discharge of the lien, or if requested by Lender, deposit with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender in an amount sufficient to discharge the lien plus any costs and attorneys' fees, or other charges that could accrue as a result of a foreclosure or sale under the lien. In any contest, Grantor shall defend itself and Lender and shall satisfy any adverse judgment before enforcement against the Property. Grantor shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Evidence of Payment. Grantor shall upon demand furnish to Lender satisfactory evidence of payment of the taxes or assessments and shall authorize the appropriate governmental official to deliver to Lender at any time a written statement of the taxes and assessments against the Property. Notice of Construction. Grantor shall notify Lender at least fifteen (15) days before any work is commenced, any services are furnished, or any materials are supplied to the Property, if any mechanic's lien, materialmen's lien, or other lien could be asserted on account of the work, services, or materials and the cost exceeds $1,000.00. Grantor will upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Grantor can and will pay the cost of such improvements. PROPERTY DAMAGE INSURANCE. The following provisions relating to insuring the Property are a part of this Mortgage: Maintenance of Insurance. Grantor shall procure and maintain policies of fire insurance with standard extended coverage endorsements on a replacement basis for the full insurable value covering all Improvements on the Real Property in an amount sufficient to avoid application of any coinsurance clause, and with a standard mortgagee clause in favor of Lender. Grantor shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may request with Lender being named as additional insureds In such liability insurance policies. Additionally, Grantor shall maintain such other insurance, including but not limited to hazard, business interruption and boiler insurance as Lender may require. Policies shall be written by such insurance companies and in such form as may be reasonably acceptable to Lender. Grantor shall deliver to Lender certificates of coverage from each insurer containing a stipulation that coverage will not be cancelled or diminished without a minimum of thirty (30) days' prior written notice to Lender and not containing any disclaimer of the insurer's liability for failure to give such notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person. The Real Property is or will be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. Grantor agrees to obtain and maintain Federal Flood Insurance, if available, for the full unpaid principal balance of the loan and any prior liens on the property securing the loan, up to the maximum policy limits set under the National Flood Insurance Program, or as otherwise required by Lender, and to maintain such insurance for the term of the loan. Application of Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Property if the estimated cost of repair or replacement exceeds $1,000.00. Lender may make proof of loss if Grantor falls to do so within fifteen (15) days of the casualty. Whether or not Lender's security is impaired, Lander may, at Lender's election, receive and retain the proceeds of any insurance and apply the proceeds to the reduction of the Indebtedness, payment of any lien affecting the Property, or the restoration and repair of the Property, If Lender elects to apply the proceeds to restoration and repair, Grantor shall repair or replace the damaged or destroyed Improvements in a manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration if Grantor is not in default under this Mortgage. Any proceeds which have not been disbursed within 180 days after their receipt and which Lender has not committed to the repair or restoration of the Property shall be used first to pay any amount owing to Lender under this Mortgage, then to pay accrued interest, and the remainder, if any, shall be applied to the principal balance of the Indebtedness. If Lender holds any proceeds after payment in full of the Indebtedness, such proceeds shall be paid to Grantor as Grantor's interests may appear. Grantor's Report on Insurance. Upon request of Lender, however not more than once a year, Grantor shall furnish to Lender a report on each existing policy of insurance showing: (1) the name of the Insurer; (2) the risks insured; 13) the amount of the policy; (4) the property insured, the then current replacement value of such property, and the manner of determining that value; and (5) the expiration date of the policy. Grantor shall, upon request of Lander, have an independent appraiser satisfactory to Lender determine the cash value replacement cost Of the Property. LENDER'S EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Property or if Grantor fails to comply with any provision of this Mortgage or any Related Documents, including but SK 1912PG314-7 MORTGAGE (Continued) Page 4 not limited to Grantor's failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Mortgage or any Related Documents, Lender on Grantor's behalf may (but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Grantor. All such expenses will become a part of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Mortgage also will secure payment of these amounts. Such right shell be in addition to all other rights and remedies to which Lender may be entitled upon Default, Grantor's obligation to Lender for all such expenses shall survive the entry of any mortgage foreclosure judgment. WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of the Property are a part of this Mortgage: Title. Grantor warrants that; (a) Grantor holds good and marketable title of record to the Property in fee simple, free and clear of all liens and encumbrances other than those set forth in the Real Property description or in any title insurance policy, title report, or final title opinion issued in favor of, and accepted by, Lender in connection with this Mortgage, and (b) Grantor has the full right, power, and authority to execute and deliver this Mortgage to Lender. Defense of Title. Subject to the exception in the paragraph above, Grantor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceeding is commenced that questions Grantor's title or the interest of Lender under this Mortgage, Grantor shall defend the action at Grantor's expense. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of Lender's own choice, and Grantor will deliver, or cause to be delivered, to Lender such instruments as Lender may request from time to time to permit such participation. Compliance With Laws. Grantor warrants that the Property and Grantor's use of the Property complies with all existing applicable laws, ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties, and agreements made by Grantor in this Mortgage shall survive the execution and delivery of this Mortgage, shall be continuing in nature, and shall remain in full force and effect until such time as Borrower's Indebtedness shall be paid in full. CONDEMNATION. The following provisions relating to condemnation proceedings are a part of this Mortgage: Proceedings, If any proceeding in condemnation is filed, Grantor shall promptly notify Lender In writing, and Grantor shall promptly take such steps as may be necessary to defend the action and obtain the award. Grantor may be the nominal party in such proceeding, but Lender shall be entitled to participate in the proceeding and to be represented in the proceeding by counsel of its own choice, and Grantor will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to permit such participation. Application of Net Proceeds. If all or any part of the Property is condemned by eminent domain proceedings or by any proceeding or purchase In lieu of condemnation, Lender may at its election require that all or any portion of the net proceeds of the award be applied to the Indebtedness or the repair or restoration of the Property. The net proceeds of the award shall mean the award after payment of all actual costs, expenses, and attorneys' fees incurred by Lender in connection with the condemnation. IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following provisions relating to governmental taxes, fees and charges are a part of this Mortgage: Current Taxes, Fees and Charges. Upon request by Lender, Grantor shall execute such documents in addition to this Mortgage and take whatever other action is requested by Lender to perfect and continue Lender's lien on the Real Property, Grantor shall reimburse Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Mortgage, including without limitation all taxes, fees, documentary stamps, and other charges for recording or registering this Mortgage, Taxes. The following shall constitute taxes to which this section applies: (1) a specific tax upon this type of Mortgage or upon all or any part of the Indebtedness secured by this Mortgage; (2) a specific tax on Borrower which Borrower is authorized or required to deduct from payments on the Indebtedness secured by this type of Mortgage; (3) a tax on this type of Mortgage chargeable against the Lender or the holder of the Note; and (4) a specific tax on all or any portion of the Indebtedness or on payments of principal and interest made by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Mortgage, BKl912PG3148 • t • t MORTGAGE (Continued) Page 5 this event shall have the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for an Event of Default as provided below unless Grantor either (1) pays the tax before it becomes delinquent, or (2) contests the tax as provided above in the Taxes and Liens section and deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender. SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Mortgage as a security agreement are a part of this Mortgage: Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and Lender shall have all of the rights of a secured party under the Uniform Commercial Code as amended from time to time. Security Interest. Upon request by Lender, Grantor shall take whatever action is requested by Lender to perfect and continue Lender's security interest in the Rents and Personal Property. In addition to recording this Mortgage in the real property records, Lender may, at any time and without further authorization from Grantor, file executed counterparts, copies or reproductions of this Mortgage as a financing statement. Grantor shall reimburse Lender for all expenses incurred in perfecting or continuing this security interest. Upon default, Grantor shall not remove, sever or detach the Personal Property from the Property. Upon default, Grantor shall assemble any Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Grantor and Lender and make it available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses. The mailing addresses of Grantor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Mortgage may be obtained (each as required by the Uniform Commercial Code) are as stated on the first page of this Mortgage. FURTHER ASSURANCES; ADDITIONAL AUTHORIZATIONS. The following provisions relating to further assurances and additional authorizations are a part of this Mortgage: Further Assurances. At any time, and from time to time, upon request of Lender, Grantor will make, execute and deliver, or will cause to be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be filed, recorded, refiled, or rerecorded, as the case may be, at such times and in such offices and places as Lender may deem appropriate, any and all such mortgages, deeds of trust, security deeds, security agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, in the sole opinion of Lender, be necessary or desirable in order to effectuate, complete, perfect, continue, or preserve (1) Borrower's and Grantor's obligations under the Note, this Mortgage, and the Related Documents, and (2) the liens and security interests created by this Mortgage as first and prior liens on the Property, whether now owned or hereafter acquired by Grantor. Unless prohibited by law or Lender agrees to the contrary in writing, Grantor shall reimburse Lender for all costs and expenses incurred in connection with the matters referred to in this paragraph. Additional Authorizatlons. If Grantor fails to do any of the things referred to in the preceding paragraph, Lender may do so for and in the name of Grantor and at Grantor's expense. For such purposes, Grantor hereby irrevocably authorizes Lender to make, execute, deliver, file, record and do all other things as may be necessary or desirable, in Lender's sole opinion, to accomplish the matters referred to in the preceding paragraph. It is understood that nothing set forth herein shall require Lender to take any such actions. FULL PERFORMANCE. If Borrower pays all the Indebtedness when due, and otherwise performs all the obligations imposed upon Grantor under this Mortgage, Lender shall execute and deliver to Grantor a suitable satisfaction of this Mortgage and suitable statements of termination of any financing statement on file evidencing Lender's security interest in the Rents and the Personal Property. Grantor will pay, if permitted by applicable law, any reasonable termination fee as determined by Lender from time to time. EVENTS OF DEFAULT. Each of the following, at Lender's option, shall constitute an Event of Default under this Mortgage: Payment Default. Borrower fails to make any payment when due under the Indebtedness. Default on Other Payments. Failure of Grantor within the time required by this Mortgage to make any payment for taxes or insurance, or any other payment necessary to prevent filing of or to effect discharge of any lien. Other Defaults. Borrower or Grantor fails to comply with or to perform any other term, obligation, covenant or condition contained in this Mortgage 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 or Grantor. Default In Favor of Third Parties. Should Borrower or any Grantor default 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 or any Grantor's property or Borrower's ability to repay the indebtedness or Borrower's or Grantor's ability to perform their respective obligations under this Mortgage or any BKI912PG3 149 MORTGAGE (Continued) Page 6 related document, False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or Grantor or on Borrower's or Grantor's behalf under this Mortgage 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. Defective Collaterelization. This Mortgage or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Insolvency. The dissolution or termination of Borrower's or Grantor's existence as a going business, the insolvency of Borrower or Grantor, the appointment of a receiver for any part of Borrower's or Grantor'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 or Grantor. 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 Grantor or by any governmental agency against any property securing the Indebtedness. This includes a garnishment of any of Borrower's or Grantor's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower or Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower or Grantor 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. Breach of Other Agreement. Any breach by Borrower or Grantor under the terms of any other agreement between Borrower or Grantor and Lender that is not remedied within any grace period provided therein, including without limitation any agreement concerning any indebtedness or other obligation of Borrower or Grantor to Lender, whether existing now or later. 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. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Adverse Change. A material adverse change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. Insecurity. Lender in good faith believes itself insecure. Right to Cure. If any default, other than a default in payment is curable and if Grantor has not been given a notice of a breach of the same provision of this Mortgage within the preceding twelve (12) months, it may be cured if Grantor, after receiving written notice from Lender demanding cure of such default. (1) cures the default within ten (10) days; or 12) if the cure requires more than ten (10) 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. RIGHTS AND REMEDIES ON DEFAULT. Upon the occurrence of an Event of Default and at any time thereafter, Lender, at Lender's option, may exercise any one or more of the following rights and remedies, in addition to any other rights or remedies provided by law; Accelerate Indebtedness. Lender shall have the right at its option, after giving such notices as required by applicable law, to declare the entire Indebtedness immediately due and payable. UCC Remedies. With respect to all or any part of the Personal Property, Lender shall have all the rights and remedies of a secured party under the Uniform Commercial Code. Collect Rents. Lender shall have the right, without notice to Borrower or Grantor, to take possession of the Property and, with or without taking possession of the Property, to collect the Rents, including amounts past duo and unpaid, and apply the net proceeds, over and above Lender's costs, against the Indebtedness. In furtherance of this right, Lender may require any tenant or other user of the Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Grantor irrevocably authorizes Lender to endorse instruments received in payment thereof in the name of Grantor and to negotiate the same and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for which the payments are made, whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, or through a receiver. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of Kt912PG3450 MORTGAGE (Continued) Page 7 the Property, with the power to protect and preserve the Property, to operate the Property preceding foreclosure or sale, and to collect the Rents from the Property and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not the apparent value of the Property exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver. Judicial Foreclosure. Lender may obtain a judicial decree foreclosing Grantor's interest in all or any part of the Property. Possession of the Property. For the purpose of procuring possession of the Property, Grantor hereby authorizes and empowers any attorney of any court of record in the Commonwealth of Pennsylvania or elsewhere, as attorney for Lender and all persons claiming under or through Lender, to sign an agreement for entering in any competent court an amicable action in ejectment for possession of the Property and to appear for and confess judgment against Grantor, and against all persona claiming under or through Grantor, for the recovery by Lender of possession of the Property, without any stay of execution, for which this Mortgage, or a copy of this Mortgage verified by affidavit, shall be a sufficient warrant; and thereupon a writ of possession may be issued forthwith, without any prior writ or proceeding whatsoever. Nonjudlcial Sale. If permitted by applicable low, Lander may foreclose Grantor's interest in all or In any part of the Personal Property or the Real Property by non - judicial sale. Deficiency Judgment. Lender may obtain a judgment for any deficiency remaining in the Indebtedness due to Lender after application of all amounts received from the exercise of the rights provided in this section. Tenancy at Sufferance. If Grantor remains in possession of the Property after the Property is sold as provided above or Lender otherwise becomes entitled to possession of the Property upon default of Grantor, Grantor shall become a tenant at sufferance of Lender or the purchaser of the Property and shall, at Lender's option, either (1) pay a reasonable rental for the use of the Property, or (2) vacate the Property immediately upon the demand of Lender. Other Remedies. Lender shall have all other rights and remedies provided in this Mortgage or the Note or available at law or in equity. Sale of the Property. To the extent permitted by applicable law, Borrower and Grantor hereby waives any and all right to have the Property marshalled, In exercising its rights and remedies, Lender shall be free to sell all or any part of the Property together or separately, in one sale or by separate sales. Lender shall be entitled to bid at any public sale on all or any portion of the Property. Notice of Sale. Lender shall give Grantor reasonable notice of the time and place of any public sale of the Personal Property or of the time after which any private sale or other intended disposition of the Personal Property is to be made. Unless otherwise required by applicable law, reasonable notice shall mean notice given at least ten (10) days before the time of the sale or disposition. Any sale of the Personal Property may be made in conjunction with any sale of the Real Property. Election of Remedies. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor under this Mortgage, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise its remedies. Nothing under this Mortgage or otherwise shell be construed so as to limit or restrict the rights and remedies available to Lander following an Event of Default, or in any way to limit or restrict the rights and ability of Lender to proceed directly against Grantor and /or Borrower and /or against any other co-maker, guarantor, surety or endorser and /or to proceed against any other collateral directly or indirectly securing the Indebtedness. Attorneys' Fees; Expenses. If Lender institutes any suit or action to enforce any of the terms of this Mortgage, Lender shall be entitled to recover such sum as the court may adjudge reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are necessary at any time for the protection of its interest or the enforcement of its rights shall become a part of the Indebtedness payable on demand and shall bear interest at the Note rate from the date of the expenditure until repaid. Expenses covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post- judgment collection services, the cost of searching records, obtaining title reports (including foreclosure reports), surveyors' reports, and appraisal fees and title insurance, to the extent permitted by applicable law. Grantor also will pay any court costs, in addition to all other sums provided by law. NOTICES. Unless otherwise provided by applicable law, any notice required to be given under this Mortgage shall be given in writing, and shall be effective when actually delivered, when actually received by telefacsimile (unless oK1912PG3151 ...__. ......._... _ ...._ ._�_.. �....... ..._ ..._ ..... ____ .._ i MORTGAGE (Continued) Page 8 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 Mortgage. All copies of notices of foreclosure from the holder of any lien which has priority over this Mortgage and notices pursuant to 42 Pa. C.S.A. Section 8143, et. seq., shall be sent to Lender's address, as shown near the beginning of this Mortgage. Any party may change its address for notices under this Mortgage 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, Grantor agrees to keep Lender informed at all times of Grantor's current address. Unless otherwise provided by applicable law, if there is more than one Grantor, any notice given by Lender to any Grantor is deemed to be notice given to all Grantors. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Mortgage: Amendments. This Mortgage, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Mortgage. No alteration of or amendment to this Mortgage 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. Annual Reports. If the Property is used for purposes other than Grantor's residence, Grantor shall furnish to Lender, upon request, a certified statement of net operating income received from the Property during Grantor's previous fiscal year in such form and detail as Lender shall require. "Net operating income" shall mean all cash receipts from the Property less all cash expenditures made in connection with the operation of the Property. Caption Headings. Caption headings in this Mortgage are for convenience purposes only and are not to be used to interpret or define the provisions of this Mortgage. Governing Law. This Mortgage will be governed by federal law applicable to Lender and, to the extent not preempted by federal taw, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Mortgage has been accepted by Lender in the Commonwealth of Pennsylvania. Choice of Venue. If there is a lawsuit, Grantor agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. Joint and Several Liability. All obligations of Borrower and Grantor under this Mortgage shall be joint and several, and all references to Grantor shall mean each and every Grantor, and all references to Borrower shall mean each and every Borrower. This means that each Borrower and Grantor signing below is responsible for all obligations in this Mortgage. Where any one or more of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire into the powers of any of the officers, directors, partners, members, or other agents acting or purporting to act on the entity's behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Mortgage. No Waiver by Lender. Lender shall not be doomed to have waived any rights under this Mortgage unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Mortgage shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Mortgage. No prior waiver by Lender, nor any course of dealing between Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Mortgage, the granting of such consent by Lender in any instance shall not constitute 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. Severability. If a court of competent jurisdiction finds any provision of this Mortgage to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance, If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, It shall be considered deleted from this Mortgage. Unless otherwise required by law, the illegality, invalidity, or unenforceabilily of any provision of this Mortgage shall not affect the legality, validity or enforceability of any other provision of this Mortgage. Merger. There shall be no merger of the interest or estate created by this Mortgage with any other interest or estate in the Property at any time held by or for the benefit of Lender in any capacity, without the written consent of Lender. Successor Interests. The terms of this Mortgage shall be binding upon Grantor, and upon Grantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Time is of the Essence. Time is of the essence in the performance of this Mortgage. Waive Jury. All parties to this Mortgage hereby waive the right to a Jq. any action, proceeding, or counterclaim brought by any party against any other party. (Initial Here 1912P ;3152 Y 1 ^ MORTGAGE (Continued) Page 9 DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Mortgage, Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States 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 Mortgage shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Capitol Property Management, Inc.; and Capitol Renovation & Supply, Inc. and includes all co- signers and co- makers signing the Note. Default. The word "Default" means the Default set forth in this Mortgage in the section titled "Default ". Environmental Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Usbility Act of 1980, as amended, 42 U.S.C. Section 9601, at seq. ( "CERCLA% the Superfund Amendments and Reauthorization Act of 1996, Pub. L. No. 99 -499 ("SARA", the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, at seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, at seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto. Event of Default. The words "Event of Default" mean any of the events of default set forth in this Mortgage in the events of default section of this Mortgage. Grantor. The word "Grantor" means Capitol Property Management, Inc.. Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation party of any or all of the Indebtedness. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Hazardous Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled, The words "Hazardous Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes, without limitation, petroleum and petroleum by- products or any fraction thereof and asbestos. Improvements. The word `Improvements" means all existing and future improvements, buildings, structures, mobile homes affixed on the Real Property, facilities, additions, replacements and other construction on the Real Property. Indebtedness. The word "Indebtedness" means all principal, interest, and other amounts, costs and expenses payable under the Note or Related Documents, together with all renewals of, extensions of, modifications of, consolidations of and substitutions for the Note or Related Documents and any amounts expended or advanced by Lender to discharge Grantor's obligations or expenses incurred by Lender to enforce Grantor's obligations under this Mortgage, together with Interest on such amounts as provided in this Mortgage. Lender. The word "Lender" means Integrity Bank, its successors and assigns. Mortgage. The word "Mortgage" means this Mortgage between Grantor and Lender. Note. The word "Note" means the promissory note dated June 10, 2005, in the original principal amount Of $500,000.00 from Borrower to Lender, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the promissory note or agreement. NOTICE TO GRANTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE. Personal Property. The words "Personal Property" mean all equipment, fixtures, and other articles of personal property now or hereafter owned by Grantor, and now or hereafter attached or affixed to the Real Property; together with all accessions, parts, and additions to, all replacements of, and all substitutions for, any of such property; and together with all proceeds (including without limitation all insurance proceeds and refunds of premiums) from any sale or other disposition of the Property. Property. The word "Property" means collectively the Real Property and the Personal Property. Real Property. The words "Real Property" mean the real property, interests and rights, as further described in this Mortgage. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter 1 191 2PG3153 MORTGAGE (Continued) Page 10 existing, executed in connection with the Indebtedness. Rents. The word "Rents" means all present and future rents, revenues, income, issues, royalties, profits, and other benefits derived from the Property. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MORTGAGE, AND GRANTOR AGREES TO ITS TERMS. THIS MORTGAGE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS MORTGAGE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GRANTOR: CAPITOL PR ANA EMENT, INC. an Eric J. Ds s ors, Presl dent of Capitol Property Management, Inc. CERTIFICATE OF RESIDENCE I hereby certify, that the precise address of the mortgagee, Integrity Bank, herein is as follows: Camp Hill Office, 3346 Market Street, Camp Hill, PA 17011 Attorney cr Agent AofMortgagee CORPORATE ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA I /� )SS 6 COUNTY OF UxbetfaIROL 1 f-1 On this, the Q day of 20 -5 before me the undersigned Notary Public, personally appeared Eric J. Desroslers, President bf Capitol,-Property Management, Inc., who acknowledged himself or herself to be the President of Capitol Property Management, Inc., of a corporation, and that he or she as such President of Capitol Property Management, Inc., being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself or herself as President of Capitol Property Management, Inc.. In witness whereof, I hereunto set my hand and official al SNONWF,ALTH OF PENN�SY1 TWany S . MWArAN No tary C k Notary ublic in and for the State of �nf?S VOLOIa Camp HNI 8oro, Cui�nnl> S�yyr My Com mission Expires-A19. 20, 2OD6 Mwrhsr, Pennsylvania AssWallon of Noterles L M RRO L—q. Vim. 5.25.00.00E Cope. /W d Ih—W L"4tbM, lna. 1K1. 2006. M fth%Rw , - "A 1:1C,11 10 .M 1 -07 PFl] BK 19 1216 315 4 AM TWO Cl�t!PaMXM lot er parq*, .o! tud. 14.. rho lay:oag8 of Nov Iad64 Lush=L&M Couty Facia 1V Mrs pxs�ktatlassr ndrrs ai�,d; damn jWd .� to�zar., �a rrI post M at t Poift an *0 SWIthera Una of 'trd Stgo at Ila* �.bar3�.�s, srd.; � b�la� , Sp"*ty aid �'lv* ti ". Mi ( 72 r $ f 1 4A w" Aait�ii Wdly *vnq ' =d 0t', t 't ' `W49 bOttth iill� ±i�o�MX � �SL� R� M. W &1aat dbuew PIT tibiittv �tar.I:�} piths ts.3� ds�riat itaag fl+hed sttra ;fir ^4408 � of ftf'. a w l,�t s t4 .�` 4, 5) tom * to a fiir o Gssetivr and ... bta o meted • .,; Clue: � _ st of gun i Oi ar t : �; oqo�d i►1s ... t ttaea fit] f'iE th>.nao i #s. t'►- t) tip : *i. Via. s n vomit :Rt .or 'is�; o Ate:• .r,►.' ;r'',: t'� a'JI Mist aU'iaidt: tQi g as z .a<. the ;rag . �thiah r BI A cos: W MON e►na pa.'`�r =bag aftis ,as p�esa is I.Y. 'a PAM VXd� � j .. t� i!dt , d dat.. i t '; r X !t3 b . : dad" IA + ' ad. .B12, .gran sd. aoa da�r.�i�red, un�q p��eca tian ,. • I Certify this to be recorded In Cumberland County PA Recorder of Deeds 191912PS3155 Parcel Identification Number: _ iU15 FEB 7 fill 10 49 WHEN RECORDED MAIL TO: Integrity Sank Camp Hill Office 3345 Market Street Camp HEN, PA 17011 SEND TAX NOTICES TO: Integrity Bank Camp HIE Office 3346 Market Street Camp HE, PA 17011 FOR RECORDER'S USE ONLY MODIFICATION OF MORTGAGE THIS MODIFICATION OF MORTGAGE dated f fg2y amt , is made and executed between Capitol Property Management, Inc., whose address Is 110 3rd Street, Suite 200, New Cumberland, PA 17070 (referred to below as "Grantor ") and Integrity Bank, whose address is 3345 Market Street, Camp Hill, PA 17011 (referred to below as "Lender "). MORTGAGE. Lender and Grantor have entered into a Mortgage dated June 10, 2005 (the "Mortgage ") which has been recorded in Cumberland County, Commonwealth of Pennsylvania, as follows: Mortgage and Assignment of Rents Recorded by Recorder of Deads, Cumberland County, .nine 28, 2005 at 11:36 am In Book 1872 Page 3145 - 3155. REAL PROPERTY DESCRIPTION. The Mortgage covers the following described real property located in Cumberland County, Commonwealth of Pennsylvania: See Exhibit "A ", which is attached to this Modification and made a part of this Modification as if fully set forth herein. The Real Property or its address is commonly known as 110 3rd Street, 213 Market Street, 207 Walnut Allay, New Cumberland, PA 17070. MODIFICATION. Lender and Grantor hereby modify the Mortgage as follows: Principal Increase from $500,000.00 to $760,000.00. CONTINUING VALIDITY. Except as expressly modified above, the terms of the original Mortgage shall remain unchanged and in full force and effect and are legally valid, binding, and enforceable in accordance with their respective terms. Consent by Lender to this Modification does not waive Lender's right to require strict performance of the Mortgage as changed above nor obligate Lender to make any future modifications. Nothing in this Modification shall constitute a satisfaction of the promissory note or other credit agreement secured by the Mortgage (the "Note "). It is the intention of Lender to retain as liable all parties to the Mortgage and all parties, makers and endorsers to the Note, including accommodation parties, unless a party is expressly released by Lender in writing. Any maker or endorser, including accommodation makers, shall not be released by virtue of this Modification. If any person who signed the original Mortgage does not sign this Modification, then all persons signing below acknowledge that this Modification is given conditionally, based on the representation to Lender that the non - signing person consents to the changes and provisions of this Modification or otherwise will not be released by h- This waiver applies not only to any initial extension or modification, but also to all such subsequent actions. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS MODIFICATION OF MORT GE AND GRANTOR AGREES TO ITS TERMS. THIS MODIFICATION OF MORTGAGE IS DATED 4;c Iv e 10., THIS MODIFICATION IS 431VEN UNDER SEAL AND IT IS INTENDED THAT THIS MODIFICATION IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. a�o;c 7P-4 FasF; � ' 4�3(. MODIFICATION OF MORTGAGE Loan No: 1500085385 (Continued) Page 2 GRANTOR: CAPITOL P501REIRT5 GEMEN INC tSeal) Eric J. Dearaft President of Cbpftol Property Management, Inc. LENDER: INTE 77L (Seal) Rdbej K. Day, Vice esident CERTIFICATE OF RESIDENCE 1 hereby certify, that the precise address of the mortgagee, Integrity Bank, herein is as follows: Camp Hill Office, 3345 Market Street, Camp Hill, PA 17011 T ttorney or Agent or -Mortgagee CORPORATE ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA ) ) SS COUNTY OF OWnISU (,,&P i n is, the day of P a &A 20 , before me ( Maa( the undersigned Notary Public personally appeared J. Desroskre, Pns of Capit Property Management, Inc., who acknowledged himdefror herself to be the PreeMent of Capitol Property Management, Inc., of a corporation, and that he or she as such President of Cwhoi Property Management, Inc., being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by Himself or herself � heer�sellff as President of Capitol Pr arty ant, Inc.. In witness: virFi�S� i;TlfllidM d and offt6l 84. Nwarial S M. Fieml , f n zr Jtdy Notary Public in for the State of �..4a of Notarks NobwWSM V Cesar lon r isa .hd)► 29, 200 Msrnber. PennsyN" Amo*ftn of Nofades M BOOK 7 24 PACE X43 - I MODIFICATION OF MORTGAGE Loan No: 1500085385 (Continued) Page 3 LENDER ACKNOWLEDGMENT COMMONWEALTH OF PENNSYLVANIA 1 S COUNTY OF LtM13f"jJD 1 At this, the 11,E day of , 20 before me A V r UYI,I Ij ,the undersigned Notary Public, ersonally appeared ---- who ackr*w# dged himself or herself-to be the P ILCXm !D L44 I' of a lender, and that he or she as such V Itl-2& 1 OVA 2T' being authorized to do so, executed the foregoi ins rumeM for the purposes therein contained by signing the name of the lender by himself or herself as V) C.L / / tot O f In witness whereof, l hereunto set Y r nd and offida A. a Bam C&bed& Notary a or the State of L1 1 1 1A.44 — July 29.2008 ., Panf W wnk Assadstion of Natales wmn PM La%&O v.. 0.32 -w- a Cep. wnA.e F%m*W 5. dtl wa 1R7, a0o.. N 11yw ■—.0. . IA CIt[WM01C11YRq]01./C lIFp7 0&10 Cerli fy this to be recorded in CumberlanH- County PA 900K � 24 PACE 3;? z�- . �`'� Recorder of Deeds ��, > � � i t �' �� ,� �� k- b � � �� PROMISSORY NOTE - ::..... ......... ..rte �� . 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 limitaticns. Borrower Capitol Property Management Inc Lender: integrity Bank Camp Hill Office 110 3rd Street Suite 200 3345 Market Street New Cumberland, PA 170702131 Camp Hill, PA 17011 (717) 920-4900 Principal Amount: $745,490.94 Date of Note: January 5, 2012 PROMISE TO PAY. Capitol Property Management Inc ( "Borrower ") promises to pay to Integrity Bank ( "Lender "), or order, in lawful money of the United States of America, the principal amount of Seven Hundred Forty-five Thousand Four Hundred Ninety & 941100 Dollars ($745,490.941, together with in on the unpaid principal balance from January 5, 2012, 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, which calculates interest on the unpaid principal balances as described in the "INTEREST CALCULATION METHOD" paragraph using the interest rates described in this paragraph: 3 monthly consecutive interest payments, beginning January 10, 2012, with Interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,746.65 each, beginning April 10, 2012, with interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days: 5 monthly consecutive Interest payments, beginning November 10, 2012, with interest calculated on the unpaid principal balances using an Interest rate of 6.750% par annum based on a year of 360 days; 7 monthly consecutive principal and interest payments In the Initial amount of $5,809.96 each, beginning April 10, 2013, with interest calculated on the unpaid principal balances using an interest rate of 6.760% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2013, with interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,880.28 each, beginning April 10, 2014, with Interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2014, with interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 7 monthly consecutive principal and Interest payments in the initial amount of $5,958.72 each, beginning April 10, 2016, with Interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 5 monthly consecutive Interest payments, beginning November 10, 2015, with interest calculated on the unpaid principal balances using an Interest rate of 6.750% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $6,045.46 each, beginning April 10, 2016, with interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 2 monthly consecutive interest payments, beginning November 10, 2016, with interest calculated on the unpaid principal balances using an interest rate of 6.750% per annum based on a year of 360 days; 3 monthly consecutive interest payments, beginning January 10, 2017, with interest calculated on the unpaid principal balances using an interest rate based on 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 (currently 3.250 %1, plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,162.49 each, beginning April 10, 2017, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wag 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 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 (currently 3.250%1, plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.260% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2017, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial Interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,274.19 each, beginning April 10, 2018, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %); plus a margin of 1.000 percentage points, resulting in an Initial Interest rate of 4.250% per annum based on a year of 360 days; 6 monthly consecutive Interest payments, beginning November 10, 2018, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 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, resulting In an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,399.96 each, beginning April 10, 2019, with interest calculated on the unpaid principal balances using an Interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days: 6 monthly consecutive interest payments,. beginning November 10, 2019, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,642.02 each, beginning April 10, 2020, with interest calculated PROMISSORY NOTE (Continued) Page 2 on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2020, with interest calculated on the unpaid principal balances using an interest rate based on the Now 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 Wall Street Journal, as the "Prime Rate of Interest ". The New York Prime Rate of interest is an index, and bans 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting In an Initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,705.47 each, beginning April 10, 2021, 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 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting In an initial Interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2021, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an Initial Interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $5,894.81 each, beginning April 10, 2022, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 rata of interest. The interest rate shall float at New York Prime (currently 3.250 %1, plus a margin of* 1.000 percentage points, resulting in an initial Interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2022, with Interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %). plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $6,117.12 each, beginning April 10, 2023, with interest calculated on the unpaid principal balances using an Interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting In an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2023, with Interest calculated on the unpaid principal balances using an interest rate based on 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 Wail 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 (currently 3.250 %), plus a margin of. 1.000 percentage points, resulting in an initial Interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $6,381.76 each, beginning April 10, 2024; with interest calculated on the unpaid principal balances using an interest rate based on the Now 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 Wall Street Journal, as the "Prime Rate of Interast 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 Icurrently 3.250 %1, plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2024, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an Initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and Interest payments in the Initial amount of $6,705.27 each, beginning April 10, 2025, with interest calculated on the unpaid principal balances using an Interest rate based on the New York Prime Rate of Interest. The New York Prime Rate of Interest shalt 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 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2025, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 Prima Rate of interest is not necessarily the Bank's lowest rate of Interest. The interest rat shall float at New York Prime (currently 3.260 %1, plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and Interest payments in the initial amount of $7,110.70 each, beginning April 10, 2026, with interest calculated on the unpaid principal balances using an Interest rate based on 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 joumats, 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an Initial Interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2026, with interest calculated on the unpaid principal f- arnnces using an interest rate based on the New Yorl• 'rime Rate of Interest. The New York Prime Rate of interest shall mean the Interest ra tr annum announced from time to time in vario usiness journals, such as The Wall Street PROMISSORY NOTE (Continued) Page 3 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 Prone (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $7,638.09 each, beginning April 10, 2027, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2027, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3..250 %), plus a margin of 1.000 percentage points, resulting In an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $8,360.87 each, beginning April 10, 2028, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wail 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2028, with interest calculated on the unpaid principal balances using an Interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive interest payments, beginning April 10, 2029, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wail 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial Interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2029, with interest calculated on the unpaid principal balances using an Interest rate based on the New York Prime Rate of Interest. The New York Prime Rate of interest shag 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 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $13,864.45 each, beginning April 10, 2030, with interest calculated on the unpaid principal balances using an interest rate based on 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 varlous business journals, such as The Wall 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 Now York Prime Rate of Interest is not necessarily the Bank's lowest rate of interest. The interest rate shalt float at New York Prime (currently 3.250 %). plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 5 monthly consecutive interest payments, beginning November 10, 2030, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an Initial interest rate of 4.250% per annum based on a year of 360 days; 7 monthly consecutive principal and interest payments in the initial amount of $19,469.86 each, beginning April 10, 2031, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial interest rate of 4.250% per annum based on a year of 360 days; 2 monthly consecutive interest payments, beginning November 10, 2031, with interest calculated on the unpaid principal balances using an interest rate based on 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 Wall 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 (currently 3.250 %), plus a margin of 1.000 percentage points, resulting in an initial Interest rate of 4.250% per annum based on a year of 360 days; and one principal and interest payment of $96,655.58 on January 10. 2032, with interest calculated on the unpaid principal balances using an interest rate based on the Now 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 Wall 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 (currently 3.250 %1, plus a margin of 1.000 percentage points, resulting in an initial Interest rate of 4.250% 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 wffi 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 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 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 Wall 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 �h .rna,i hv I anrtar on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute Index after PROMISSORY NOTE (Continued) Page. 4 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 last payment date of the just - ending payment stream. NOTICE: Under no circumstances will the interest rate on this Note be 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 (s, 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 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 trust be mailed or delivered to: Integrity Bank, 3314 Market Street Camp Hill, PA 17011. LATE CHARGE. If 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. 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 ironies 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 112) 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 then ten (10) 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. it 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 hereb�aive the right to any jury trial In any action, proce�,_g, or counterclaim brought by either Lender PROMISSORY NOTE (Continued) Page 5 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 $29.00 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 First Priority mortgage on the real Property located at 110 N 3rd Street, New Cumberland, PA 17070, second priority mortgage on the real property at 808 Michigan Drive, Lemoyne, PA 17043, and a first mortgage on the real property at 207 Walnut Alley and 213 Market Street, New Cumberland , Cumberland County PA CALL OPTION. The Bank shall have a call option may be exercised to be effective on each fifth anniversary of the date of closing, subject to ninety (90) days advance written notice to Borrower advising the Bank's election to call the obligation due. 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 parry 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 parry 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 ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. AIN PROMISSORY NOTE (Continued) Page 6 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: CAPITOL P MENT 1N By: « ` `> � �'.::;;:;:'< >;; >' ::> `:' >? .; >< ':> _:;' >.;::< >' ; >;:::<:: >:;:: < >:� >: >.�: Sea i Eric ('J Dairoftrrs. President of Ca itol Property Management Inc ATTEST: ( Corporate Seat Se or Assistant Secretary LENDER: INTEGRITY BANK X Gary Krick, Vice Pir LASS PW Lr ^#. Vr. 6.7.00403 CeW. Wnma an—W S.Wo— W. 1697.2012. N 11 4he Apw" • PA [AIENtlN61CRMWOSC 111-4406 MF26 SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson ' II I ;U$," ,�:i � 4t1�7, nt rrairtarr 2OR MAR 12 PM 2: 42 Jody S Smith Chief Deputy fl CUlkl ERLAN J Cuu TY Richard W Stewart ti mss. Solicitor -,° PENNSYLVANIA Integrity Bank Case Number vs. 2014-1046 Capitol Property Management, Inc. SHERIFF'S RETURN OF SERVICE 02/25/2014 12:24 PM- Ronny R Anderson, Sheriff, being duly sworn according to law, states he made diligent search and inquiry for the within named Defendant to wit: Capitol Property Management, Inc., but was unable to locate the Defendant in his bailiwick. The Sheriff therefore returns the within requested Complaint& Notice as"Not Found" at 110 Third Street, Suite 200, New Cumberland Borough, New Cumberland, PA 17070. Address is vacant. 02/25/2014 01:07 PM - Deputy Noah Cline, being duly sworn according to law, served the requested Complaint& Notice by handing a true copy to a person representing themselves to be Eric Desrosiers, prior owner, who accepted as"Adult Person in Charge"for Capitol Property Management, Inc. at do Eric Desrosiers, 808 Michigan Avenue, Lemoyne, PA 17043. NOAH CLINE, DEPUTY SHERIFF COST: $65.29 SO ANSWERS, February 28, 2014 RONNY R ANDERSON, SHERIFF e. oso`.r INTEGRITY BANK, Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14 -1046 CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW PRAECIPE TO THE PROTHONOTARY: Please enter judgment in the above - captioned proceeding in favor of Plaintiff, Integrity Bank, and against Defendant, Capitol Property Management, Inc., in the amount of $633,224.55 as of January 3, 2014, along with interest accruing after January 3, 2014 at the per diem rate of $101.410200833, plus costs and reasonable attorney's fees as allowed by law for costs of collection until the Indebtedness is paid in full. Judgment is entered pursuant to Pa. R.C.P. 1037(b) for failure to file a pleading to Plaintiffs Complaint which contained a notice to defend within twenty (20) days of service thereof, and after 10 -day Notice(s) of intention to file this Praecipe was or were sent. Pursuant to Pa. R.C.P. No. 237.1, I hereby certify that notice of intent to take a default judgment was forwarded to Capitol Property Management, Inc. and Eric Desrosiers, by United States Mail, first class, postage prepaid, on March 20, 2014. The aforesaid notices were contained within an envelope bearing the return address of the undersigned. The notices have not been returned to the undersigned as undeliverable or otherwise. A copy of the notice and the Postal Form 3817 forms are attached hereto and marked IM14g=" McNEES WALLACE & NURICK LLC Date: April 3, 2014 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) cdavidson@mwn.com Attorneys for Integrity Bank c' INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14 -1046 CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW NOTICE OF JUDGMENT TO: Capitol Property Management, Inc. 110 3`d Street, Suite 200 New Cumberland, PA 17070 You are hereby notified that on April L'� , 2014, the following judgment has been entered against you in the above captioned case: Judgment in favor of Plaintiff, Integrity Bank, and against Defendant, Capitol Property Management, Inc., in the amount of $633,224.55 as of January 3, 2014, along with interest accruing after January 3, 2014 at the per diem rate of $101.410200833, plus costs and reasonable attorney's fees as allowed by law for costs of collection until the Indebtedness is paid in full. Judgment is entered pursuant to Pa. R.C.P. 1037(b) for failure to file a pleading to Plaintiffs Complaint which contained a notice to defend within twenty (20) days of service thereof, and after 10 -day Notice(s) of intention to file this Praecipe was or were sent. Dated: April L% , 2014 I hereby certify that the proper persons to receive this notice under Pa. R.C.P. 236 is: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 A Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 Por este medio se le esta notificando que el de del 2014, el /la siguiente (Orden), (Decreto), (Fallo), ha sido anotado en contra suya en el caso mencionado en el epigrafe. Fecha: Protonotario Certifico que la siguiente direccion as la del defendido /a segun indicada en el certificado de Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 MCNEES WALLACE & NURICK LLC Date: April 3, 2014 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) cdavidson@mwn.com Attorneys for Integrity Bank INTEGRITY BANK, . : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA • : NO. 14 -1046 CAPITOL PROPERTY MANAGEMENT, . INC., Defendant : CIVIL ACTION - LAW IMPORTANT NOTICE TO: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 Date of Notice: March 20, 2014 Eric Desrosiers 808 Michigan Avenue. Lemoyne, PA 17043 YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING, AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT 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 32 South Bedford Street Carlisle, PA 17013 (717) 249 -3166 or (800) 990 -9108 McNEES WALLACE & NURICK LLC By: Clayto`fi W. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108 -1166 Direct Fax: (717)- 260 -1678 Phone: (717)- 232 -8000 cdavidson @mwn.com Attorneys for Plaintiff UNITED STATES MIR POSTAL SERVICE • `j ° Certificate Of Mailing, This Certific This f °rmm McNees Wallace & Nurick LLC From: - 100 Pine Street — _P.O. Box 1166 Harrisburg, PA 17108 -1166 To: PS Form 3$17, April 2007 PSN 7530 -02 - 000 -9065 IMO STATES c� To POS AL SERVICE. Certificate Of Mailing me This C ._ .. .. 'fling. This:f°' McNees Wallace & Nurick LLC From: 100 Pine Street - P.O. Box 1166 - Harrisburg, PA 17108 -1166 To: 80 C ,c. tecrvsieY1 gs rYACrtAI Nvetw (,ew\n jh-e , tt�jA flo�i`Z PS Form 3817, April 2007 PSN 7530 -02 -000 -9065 O O N O N O 0) to tp INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14-1046 CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW PRAECIPE FOR WRIT OF EXECUTION (Mortgage Foreclosure) To The Prothonotary: Issue Writ of Execution in the above matter: Amount due as of January 3, 2014 Interest After January 3, 2014 Costs Date: May 21, 2014 SLS .,9-q 1d3. -7S Ise._ v),\u\ $633,224.55 $101.410200833 per day $to be added McNEES WALLACE & NURICK LLC By: Clayton W. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Plaintiff, Integrity Bank evZ 23aas �� 3thiF-9 D -C Legal Description Tract One: ALL THAT CERTAIN lot or parcel of Land, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the southern line of Third Street at line of lands now or formerly of Stuart K. Sterline, said point being Seventy and Five tenths (70.5) feet measured eastwardly along Third Street from the southeast corner of Third and Market Streets; thence North Fifty-three. (53) degrees East along Third Street a distance. of Fifty and Five tenths (50.5) feet to the lands now or formerly of Presco International, Inc., prior grantor, and being the western line of a vacated alley; thence by the same South Thirty-seven (37) degrees East a distance of Two Hundred (200) feet to Second Alley (Sixteen [16] feet wide); thence South Fifty-three (53) degrees West by the northern line of Second Alley a distance of Fifty and Five tenths (50.5) feet to a point at land now or formerly of Stuart K. Sterline; thence by the same North Thirty-seven (37) degrees West a distance of Two Hundred (200) feet to THE PLACE OF BEGINNING. BEING the same premises which Leon P. Haller, Trustee in Bankruptcy for Presco International, Inc. granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated September 3, 1997 and recorded September 18, 1997 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 164, Page 742. Being known and numbered as 110 3`d Street, New Cumberland, PA Parcel no. 25-25-006-312 Tract Two: ALL THAT CERTAIN tract or parcel of land, together with the improvements thereon erected, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at an iron pin at the northeastern corner of the intersection of Walnut Alley (16 feet) and Second Street (50 feet); thence along Walnut Alley North 37 degrees 00 minutes West, a distance of 160 feet to a point; thence South 53 degrees West through Walnut Alley a distance of 166 feet to an iron pin at Market Street (66 feet); thence by Market Street North 37 degrees 00 minutes West, a distance of 90 feet to a point on a 16 foot alley; thence by the same North 53 degrees East, a distance of 266 feet to an iron pin at land now or formerly of the Consolidated Rail Corporation; thence by the same the following three courses and distances: South 37 degrees East, a distance of 150 feet to an iron pin; thence North 53 degrees East, a distance of 20 feet to an iron pin; thence South 37 degrees East, a distance of 100 feet to an iron pin at Second Street; thence by Second Street South 53 degrees West, a distance of 120 feet to the Place of BEGINNING. (A3037795:1} BEING the same premises which Kennedy, Clionsky, King, a Pennsylvania General Partnership granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated February 23, 2001 and recorded March 1, 2001 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 240, Page 156. Being known and numbered as 213 Market. Street and 207 Walnut Street, New Cumberland, PA Tax Parcel nos. 25-25-0009-320 and 25-25-0.006-326 (A3674410:1) 2 INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff v. CAPITOL PROPERTY MANAGEMENT, INC., : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 14-1046 Defendant : CIVIL ACTION - LAW AFFIDAVIT PURSUANT TO RULE 3129.1 Integrity Bank, Plaintiff in the above action, sets forth as of the date of the Praecipe for Writ of Execution was filed, the following information concerning the real property consisting of multiple tracts of land together with the buildings and improvements erected thereon located in the Borough of New Cumberland, Cumberland County, Pennsylvania, known 110 3rd Street, 213 Market Street, and 207 Walnut Alley; Parcel ID nos. 25-25-0006-312, 25-25-0006-320, 25-25- 0006-326, respectively. 1. Name and address of owner: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 2. Name and address of defendant in the judgment herein: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 r) 3. Name and address of every judgment creditor (other than the Plaintiff herein) whose judgment is a record lien on the real property to be sold: RestoreCore Inc. John B. Stiles 2322 North 7th Street Harrisburg, PA 17110 4. Name and address of the last recorded holder (other than the Plaintiff herein) of every mortgage of record: None. 5. Name and address of every other person who has any record lien on the property: None 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: None 7. Name and address of every other person of whom the Plaintiff has knowledge who has any interest in the Property which may be affected by the sale: Cumberland County Tax Claim Department of Revenue Bureau Bureau of Compliance 1 Courthouse Square Lien Section Old Courthouse, Rm 106 PO Box 280948 Carlisle, PA 17013 Harrisburg, PA 17128-0948 Tenant Tenant 110 3rd Street 213 Market Street New Cumberland, PA 17070 New Cumberland, PA 17070 Tenant Eric J. Desrosiers 207 Walnut Alley 808 Michigan Avenue New Cumberland, PA 17070 Lemoyne, PA 17043 I verify that the statements made in this Affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. McNEES WALLACE & NURICK LLC Date: May 21, 2014 By: Clayton W. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA v. : NO. 14-1046 CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW NOTICE OF SHERIFF'S SALE OF REAL ESTATE PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.2 TAKE NOTICE: That the Sheriffs Sale of Real Property (real estate) will be held: DATE: Wednesday, September 3, 2014 TIME: 10:00 AM LOCATION: Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 CD THE PROPERTY TO BE SOLD is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) THE LOCATION of your property to be sold is: All that certain piece or parcel of land situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, known 110 3rd Street, 213 Market Street, and 207 Walnut Alley; Parcel ID nos. 25-25-0006-312, 25-25-0006- 320, 25-25-0006-326, respectively. THE JUDGMENT under or pursuant to which your property is being sold is docketed in the within Commonwealth and County to: Integrity Bank v. Capitol Property Management, Inc., Case No. 14-1046 in the amount of $633,224.55 as of January 3, 2014, along with interest accruing after January 3, 2014 at the per diem rate of $101.410200833, through the date of payment, including on and after the date of entry of judgment on this Complaint, and costs, and for foreclosure and sale of the mortgaged property until the Sheriffs Sale. THE NAME OF THE OWNER OR REPUTED OWNER of this property is: Capitol Property Management, Inc. A SCHEDULE OF DISTRIBUTION, being a list of the persons and/or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and municipalities that are owed taxes) will be filed by the Sheriff of this County thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the Schedule of Distribution may be obtained from the Sheriff of the Court of Common Pleas of the within County at the Courthouse address specified herein. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. IT HAS BEEN ISSUED BECAUSE THERE IS A JUDGMENT AGAINST YOU. IT MAY CAUSE YOUR PROPERTY TO BE HELD, TO BE SOLD OR TAKEN TO PAY THE JUDGMENT. You may have legal rights to prevent your property from being taken away. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, YOU MUST ACT PROMPTLY. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of the within County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or the procedure used against you. 2. After the Sheriffs Sale, you may file a petition with the Court of Common Pleas of the within County to set aside the sale for a grossly inadequate price or for other proper cause. This petition MUST BE FILED BEFORE THE SHERIFF'S DEED IS DELIVERED. 3. A petition or petitions raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of the within County. The petition must be served on the attorney for the creditor or on the creditor before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office - Civil Division, of the within County Courthouse, before a presentation to the Court. A copy of the Writ of Execution is available from the County Prothonotary or Sheriff. McNEES WALLACE & NURICK LLC Date: May 21, 2014 By: Clayton W. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Plaintiff, Integrity Bank Legal Description Tract One: ALL THAT CERTAIN lot or parcel of Land, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the southern line of Third Street at line of lands now or formerly of Stuart K. Sterline, said point being Seventy and Five tenths (70.5) feet measured eastwardly along Third Street from the southeast corner of Third and Market Streets; thence North Fifty-three (53) degrees East along Third Street a distance of Fifty and Five tenths (50.5) feet to the lands now or formerly of Presco International, Inc., prior grantor, and being the western line of a vacated alley; thence by the same South Thirty-seven (37) degrees East a distance of Two Hundred (200) feet to Second Alley (Sixteen [16] feet wide); thence South Fifty-three (53) degrees West by the northern line of Second Alley a distance of Fifty and Five tenths (50.5) feet to a point at land now or formerly of Stuart K. Sterline; thence by the same North Thirty-seven (37) degrees West a distance of Two Hundred (200) feet to THE PLACE OF BEGINNING. BEING the same premises which Leon P. Haller, Trustee in Bankruptcy for Presco International, Inc. granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated September 3, 1997 and recorded September 18, 1997 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 164, Page 742. Being known and numbered as 110 3rd Street, New Cumberland, PA Parcel no. 25-25-006-312 Tract Two: ALL THAT CERTAIN tract or parcel of land, together with the improvements thereon erected, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at an iron pin at the northeastern corner of the intersection of Walnut Alley (16 feet) and Second Street (50 feet); thence along Walnut Alley North 37 degrees 00 minutes West, a distance of 160 feet to a point; thence South 53 degrees West through Walnut Alley a distance of 166 feet to an iron pin at Market Street (66 feet); thence by Market Street North 37 degrees 00 minutes West, a distance of 90 feet to a point on a 16 foot alley; thence by the same North 53 degrees East, a distance of 266 feet to an iron pin at land now or formerly of the Consolidated Rail Corporation; thence by the same the following three courses and distances: South 37 degrees East, a distance of 150 feet to an iron pin; thence North 53 degrees East, a distance of 20 feet to an iron pin; thence South 37 degrees East, a distance of 100 feet to an iron pin at Second Street; thence by Second Street South 53 degrees West, a distance of 120 feet to the Place of BEGINNING. {A3037795:1) BEING the same premises which Kennedy, Clionsky, King, a Pennsylvania General Partnership granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated February 23, 2001 and recorded March 1, 2001 in the Office of the Recorder of Deeds for Cumberland County. in Deed Book 240, Page 156. Being known and numbered as 213 Market Street and 207 Walnut Street, New Cumberland, PA Tax Parcel nos. 25-25-0009-320 and 25-25-0006-326 (A3674410:1 ) 2 THE COURT OF COMMON PLEAS CUMBERLAND COUNTY PA DAVID D. BUELL, PROTHONOTARY One Courthouse Square • Suite100 • Carlisle, PA • 17013 (717) 240-6195 www.ccpa.net INTEGRITY BANK Vs. NO 14-1046 Civil Term CIVIL ACTION — LAW CAPITOL PROPERTY MANAGEMENT, INC. WRIT OF EXECUTION TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the judgment, interest and costs in the above matter you are directed to levy upon and sell the following described property: (1) See legal description. (2) (Specifically describe personal property when judgment results from a mortgage covering both personal and real property pursuant to Section 9604(a)of the Uniform Commercial Code) NOTE: Description of property must be attached to the writ. Amount Due: $633,224.55 L.L.: $.50 Interest AFTER JANUARY 3, 2014 $101.410200833 PER DAY Atty's Comm: Atty Paid: $214.04 Plaintiff Paid: Date: 5/22/14 (Seal) Due Prothy: $2.25 Other Costs: David D. Buell, Prothonotary By: Deputy REQUESTING PARTY: Name: CLAYTON W. DAVIDSON, ESQUIRE Address: MCNEES WALLACE & NURICK, LLC 100 PINE STREET - P.O. BOX 1166 HARRISBURG, PA 17108-1166 Attorney for: PLAINTIFF Telephone: WOO Supreme Court ID No. 79139 INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff v. : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 14-1046 CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW AMENDED AFFIDAVIT PURSUANT TO RULE 3129.1 Integrity Bank, Plaintiff in the above action, sets forth as of the date of the Praecipe for Writ of Execution was filed, the following information concerning the real property consisting of multiple tracts of land together with the buildings and improvements erected thereon located in the Borough of New Cumberland, Cumberland County, Pennsylvania, known 110 3rd Street, 213 Market Street, and 207 Walnut Alley; Parcel ID nos. 25-25-0006-312, 25-25-0006-320, 25-25- 0006-326, respectively. 1. Name and address of owner: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 2. Name and address of defendant in the judgment herein: Capitol Property Management, Inc. 110 3rd Street, Suite 200 New Cumberland, PA 17070 Fri -_ 3. Name and address of every judgment creditor (other than the Plaintiff herein) whose judgment is a record lien on the real property to be sold: RestoreCore Inc. 2322 North 7th Street Harrisburg, PA 17110 John B. Stiles 2322 North 7th Street Harrisburg, PA 17110 New Cumberland Borough 1120 Market Street PO Box 220 New Cumberland, PA 17070 New Cumberland Borough 1120 Market Street New Cumberland, PA 17070 4. Name and address of the last recorded holder (other than the Plaintiff herein) of every mortgage of record: None. 5. Name and address of every other person who has any record lien on the property: None 6. Name and address of every other person who has any record interest in the property and whose interest may be affected by the sale: None 7. Name and address of every other person of whom the Plaintiff has knowledge who has any interest in the Property which may be affected by the sale: Cumberland County Tax Claim Department of Revenue Bureau Bureau of Compliance 1 Courthouse Square Lien Section Old Courthouse, Rm 106 PO Box 280948 Carlisle, PA 17013 Harrisburg, PA 17128-0948 Tenant Tenant 110 3`d Street 213 Market Street New Cumberland, PA 17070 New Cumberland, PA 17070 Tenant Eric J. Desrosiers 207 Walnut Alley 808 Michigan Avenue New Cumberland, PA 17070 Lemoyne, PA 17043 I verify that the statements made in this Amended Affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. McNEES WALLACE & NURICK LLC Date: June 17, 2014 By: ClaytW. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Plaintiff, Integrity Bank INTEGRITY BANK, Plaintiff v. CAPITOL PROPERTY MANAGEMENT, INC., Defendant OF THE F�� FILED -OFFICE FjCF fOldO TAR Y 2814 JUL `3 Alf II: 52 PENESCUMBERLYL COUNTY �U : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 14-1046 : CIVIL ACTION - LAW RETURN OF SERVICE PURSUANT TO PA. R.C.P. 3129.2(c)(2) Plaintiff, Integrity Bank, hereby files this Return of Service and `swears and affirms the persons listed below, whose names appear in the Amended Affidavit filedin this proceeding li pursuant to Pa.R.C.P. 3129.1, were served with the Notice of Sheriff's Sale Pursuant to Pa.R.C.P. • 3129.2 and legal description attached hereto as Exhibit A in the manner so indicated: By ordinary mail on the parties listed below on June 20, 2014, as evidenced by U.S. Postal Service Forms 3817 Certificates of Mailing, which are attached hereto as Exhibit B. Capitol Property Management, Inc. 110 3r1 Street, Suite 200 New Cumberland, PA 17070 John B. Stiles 2322 North 7th Street Harrisburg, PA 17110 New Cumberland Borough 1120 Market Street New Cumberland, PA 17070 RestoreCore Inc. 2322 North 7th Street Harrisburg, PA 17110 New Cumberland Borough 1120 Market Street PO Box 220 New Cumberland, PA 17070 Cumberland County Tax Claim Bureau 1 Courthouse Square Old Courthouse, Rm 106 Carlisle, PA 17013 s .43:«tk"-Satest -1 • INTEGRITY BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff :. CUMBERLA.N.D COUNTY, PENNSYLVANIA • v. : NO. 14-1046 • CAPITOL PROPERTY MANAGEMENT, : INC., Defendant : CIVIL ACTION - LAW NOTICE OF SHERIFF'S SALE OF REAL ESTATE PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 31291 TAKE NOTICE: That the Sheriffs Sale of Real Property (real estate) will be held: :DATE: Wednesday, September 3, 2014 TIME: 10:00 AM LOCATION: Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 THE PROPERTY TO BE SOLD is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) THE LOCATION of your property to be sold is: All that certain piece or parcel of land situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, known 110 3"d Street, 213 Market Street, and 207 Walnut Alley; Parcel ID nos. 25-25-0006-312, 25-25-0006- 320, 25-25-0006-326, respectively. THE JUDGMENT under or pursuant to which your property, is being sold is docketed in the within Commonwealth and County to: Integrity Bank v. Capitol Property Management, Inc., Case No. 14-1046 in the amount of $633,224.55 as of January 3, 2014, along with interest accruing after January 3, 2014 at the per diem rate of $10.1.410200833, through the date of payment, including on and after the date of entry of judgment on this Complaint, and costs, and for foreclosure and sale of the mortgaged property until the Sheriffs Sale. THE NAME OF THE OWNER OR REPUTED OWNER of this property is: Capitol Property Management, Inc. A SCHEDULE OF DISTRIBUTION, being a list of the persons and/or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and municipalities that are owed taxes) will be filed by the Sheriff of this County thirty (30) days after the sale and distribution of the . proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within ten (10) days of the date it is filed. Information about the Schedule of Distribution may be obtained from the Sheriff of the Court of Common Pleas of the within County at the Courthouse address specified herein: THIS PAPER IS A NOTICE OF THE TIME AND PLACE. OF THE SALE OF YOUR PROPERTY. IT HAS BEEN ISSUED BECAUSE THERE IS A JUDGMENT AGAINST YOU. IT MAY CAUSE YOUR PROPERTY TO BE HELD. TO BE SOLD OR TAKEN TO PAY THE JUDGMENT. You may have legal rights to prevent your property from being taken away. A lawyer can. advise you more specifically of these rights. If you wish to exercise your rights, YOU MUST ACT PROMPTLY. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of the within. County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or the procedure used against you. 2. After the Sheriffs Sale, you may file a petition with the Court of Common. Pleas of the within County to set aside the sale for a grossly inadequate price or for other proper cause. This petition MUST BE FILED BEFORE THE SHERIFF'S DEED IS DELIVERED. 3. A petition or petitions raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of the within County. The petition must be served on the attorney for the creditor or on the creditor before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, , such date must be obtained from the Court Administrator's Office - Civil Division, of the within County Courthouse, before a presentation to the Court. A copy of the Writ of Execution is available from the County Prothonotary or Sheriff. MCNEES WALLACE & NURICK LLC Date: May 21, 2014 By: Clayton W. Davidson PA Attorney I.D. No. 79139 100 Pine Street - P.O. Box 1166 Harrisburg, PA 17108-1166 Direct Fax: (717)-260-1678 Phone: (717)-232-8000 cdavidson@mwn.com Attorneys for Plaintiff' Integrity Bank Legal Description Tract One: ALL THAT CERTAIN lot or parcel. of Land, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more Particularly bounded and described as follows, to wit: BEGINNING at a point on the southern line of Third Street at line of lands now or formerly of Stuart K. Sterline, said point being Seventy and Five tenths (70.5) feet measured eastwardly along Third Street from the southeast corner of Third and Market Streets; thence North Fifty-three (53) degrees East along Third Street a distance of Fifty and Five tenths (50.5) feet to the lands now or formerly of Presco International, Inc., prior grantor, and being the western line of a vacated alley; thence by the same South Thirty-seven (37) degrees East a distance of Two Hundred (200) feet to Second Alley (Sixteen [163 feet wide); thence South Fifty-three (53) degrees West by the northern line of Second Alley a distance of Fifty and Five tenths (50.5) feet to a point at land now or formerly of Stuart K. Sterline; thence by the same North Thirty-seven (37) degrees West a distance of Two Hundred (200) feet to THE PLACE OF BEGINNING. BEING the same premises which Leon P. Haller, Trustee in Bankruptcy for Fresco International, Inc. granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated September 3, 1997 and recorded September 18, 1997 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 164, Page 742. Being known and numbered as 110 31d Street, New Cumberland, PA Parcel no: 25-25-006-312 Tract. Two: ALL THAT CERTAIN tract or parcel of land, together with the improvements thereon erected, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at an iron pin at the northeastern corner of the intersection of Walnut Alley (16 feet) and. Second Street (50 feet); thence along Walnut Alley North 37 degrees 00 minutes West, a distance of 160 feet to a point; thence South 53 degrees West through Walnut Alley a distance of 166 feet to an iron pin at Market Street (66 feet); thence by Market Street North 37 degrees 00 minutes West, a distance of 90 feet to a point on a 16 foot alley; thence by the same North 53 degrees East, a distance of 266 feet to an iron pin at land now or formerly of the Consolidated Rail Corporation; thence by the same the following three courses and distances: South 37 degrees East, a distance of 150 feet to an iron pin; thence North 53 degrees East, a distance of 20 feet to an iron pin; thence South 37 degrees East, a distance of 100 feet to an iron pin at Second Street; thence by Second Street South 53 degrees West, a distance of 120 feet to the Place of BEGINNING. (A3037795:1) BEING the same Premises which Kennedy, Clionsky, King, a Pennsylvania General Partnership granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated February 23, 2001 and recorded March 1, 2001 in the Office of the Recorder of Deeds for Cumberland. County. in Deed Book 240, Page 15.6.. .• Being known and numbered as 213 Market Street and 207 Walnut Street, New Cumberland, PA . Tax Parcel nos. 25-25-0009-320 and 25-25-0006-326 (A3674410:1) 2 -6 aUNITED STATES cQ1 OSThRVICECertificate Of Mailing This Cedifireto of Motive eroviees evidence that mail has been oreSented to.USPSS for mating. This to, From: McNees Wallace & Nurick LLC . 100 Pine Street - P.O. Box 1166 Harrisburg, PA -17108.4166 To: - Capitol Property Managemen - 110 3rd Street, Suite 200 _ New Ctinibertand,. PA 1707 PS Form 3817, April 2007 PSN 7530-02-000-9065 UNITED STATES MO POSTAL SERVICE, This Corti' From: McNees Wallace & Nurick LLC This form — 100 Pine Street • — P.O. Box 1166 — Harrisburg, PA 17108-1166 Ic m 30ack Certificate Of Mailing RestoreCore Inc. 2322 North 7th Street Harrisburg, PA 17110 PS Firm 3817, April 2007 PSN 7530-02-000-9065 UNITED STATES Millr POSTAL SERVICE. Nie 3o29 Certificate Of Mailing This Cerl This mg loon From: McNees Wallace & Nurick LLC — 100 Pine Street — P.O. Box 1166 — Harrisburg, PA 17108-1166 Aft _ New Cumberland Borough _ 1120 Market Street New Cumberland, PA 17070 'ft PS Form 3817, April 2007 PSN 7530-02-000-9065 rn -o Ion 03 atUNITED NES POSTAL SERVICE. soa. Certificate Of Mailing This Co rtif Th.s formFrom: " McNees Wallace & Nurick LLC — 100 Pine Street — P.O. Box 1166 — Harrisburg, PA 17108711 — John B. Stiles ____ 2322 North 7th Street Harrisburg, PA. 17110 To: PS Form 3817, April 2007 PSN 7530-02-000-9065 WM, UNITED STATES IMO POSTAL SERVICE. This Coil This forn From: McNees Wallace & Nurick LLC — 100 Pine Street — P.O. Box 1166 302(1 Certificate Of Mailing 4ing — Harrisburg, PA 17108 -116 --- To: – New Cumberland Borou – 1120 Market Street PO Box 220 New Cumberland, PA 17070 PS Form 3817, April 2007 PSN 7530-02-000-9065 UNITED STATES Ma POSTAL SERVICE. 3o2'\ Certificate Of Mail This Cert This torn Prom: McNees Wallace & Nurick LLC — 100 Pine Street — P.O. Box 1166 — Harrisburg, PA 17108-1166 To: _ Cumberland County Tax Clainx;Ift.eau, 1 Courthouse Square N 4.5t1), Old Courthouse, Rm 106 0 — Carlisle, PA 17013 00rn 0 N CO CD PSTam 3817, April 2007 PSN 7530-02-000-9065 _0 UNITEDSTATES ME POSTAL SERVICE This Cell This fMcNees Wallace & Nurick LLC From:: - 100 Pine Street — P.O. Box 1166 — Harrisburg, PA 17108-1166 302 Certificate Of Mailing ng To: Department of Revenue Bureau of Compliance Lien Section PO Box 280948 Harrisburg, PA .17128-0948 PS Form 3817, April 2007 PSN 7530-02-000-9065 3o2'\ UNITEDSTATES POSTAL SERVICE This Cerl This torn From: McNees Wallace & Nurick LLC — 100 Pine Street ;..„..1..... — P.O. Box 1166 gid.=- otiN kN c — Harrisburg, PA 17108-116A:•\/7',11,-,� � _. •. �' il — To: - es %4'1 t 1 2 - Tenant m _ 110 3`d Street `2� c p 1 j v ey, _ New Cumberland, PA 17070 0 ,� fr N w PS Form 3817, April 2007 PSN 7530-02-000-9065 2 Ocr7,„ Certificate Of Mailing m ..hng. UNITED STATES POSTAL SERVICE® 3oTt Certificate Of Mailing This Certifi' This form r From: To: McNees Wallace & Nurick LLC 100 Pine. Street P.O. Box 1166 Harrisburg, PA 17108-1166 O O 1,4 �\ C ONS G7 . 1 0 c II;life Tenant 213 Market Street k,0 t1,3 New Cumberland, PA 17070�<: I 7 N /S• PS Form 3817, April 2007 PSN 7530-02-000-9065 3o 21 �UNITED STATES POSTAL SERVICE® Certificate Of Mailin_a This Certl ng. This form From: McNees Wallace & Nurick LLC — 100 Pine Street — P.O. Box 1166 f..`� __�-; $ \ — Harrisburg, PA 17108-1 6 70, ,9% I(0a 1 cD .. i I. v To: - Tenant '�.'/–tfl m - 207 Walnut Alley '7p` ---:L..<„,,'", . ` Z Co 17070 0 New Cumberland, PA o " I m o W mo � cn PS Form 3817, April 2007 PSN 7530-02-000-9065 UNITED STATES POSTAL SERVICE. This Cert! This r m McNees Wallace & Nurick LLC - 100 Pine Street — P.O. Box 1166 — Harrisburg, PA 17108-1166 Certificate Of Mailinn . To: - Eric J. Desrosiers 808 Michigan Avenue Lemoyne, PA 17043 PS Form 3817, April 2007.PSN 7530-02-000-9065 Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY q1P at'eirinGrt'I.,r,.. . s THE P t`OTHQ!d1_t r .r 1 AUG 29 PM 2:01 OrFF EOrTKE$11E rr CUMBERLAND COUNTY PENNSYLVANIA Integrity Bank vs. Capitol Property Management, Inc. Case Number 2014-1046 SHERIFF'S RETURN OF SERVICE 06/17/2014 06:13 PM - Deputy Dawn Kell, being duly sworn according to law, states service was performed by posting a true copy of the requested Real Estate Writ, Notice and Description, and Sale Handbill in the above titled action, upon the property located at 110 3rd Street, New Cumberland, PA 17070, Cumberland County. 06/17/2014 06:21 PM - Deputy Dawn Kell, being duly sworn according to law, states service was performed by posting a true copy of the requested Real Estate Writ, Notice and Description, and Sale Handbill in the above titled action, upon the property located at 213 Market Street, New Cumberland, PA 17070, Cumberland County. 06/17/2014 06:26 PM - Deputy Dawn Kell, being duly sworn according to law, states service was performed by posting a true copy of the requested Real Estate Writ, Notice and Description, and Sale Handbill in the above titled action, upon the property located at 207 Walnut Alley, New Cumberland, PA 17070, Cumberland County. 06/26/2014 Ronny R. Anderson,'Sheriff, being duly sworn according to law, states that he made a diligent search and inquiry for the within named Defendant, to wit: Capital Property Management, Inc., c/o Eric Desrosiers, Owner, but was unable to locate the Defendant in his bailiwick. He therefore returns the within Real Estate Writ, Notice and Description, in the above titled action, as "Not Found" at 808 Michigan Avenue, Lemoyne, PA 17043, property is vacant, defendant did not leave a forwarding address with the post office. 08/11/2014 Ronny R Anderson, Sheriff, being duly sworn according to law, states that this writ is returned "stayed", per letter of instruction from Attorney. SHERIFF COST: $1,619.49 SO ANSWERS, August 28, 2014 RONWR ANDERSON, SHERIFF ,=i CountyS,E:fe Sheriff. "releosoft inc. o? .2 S d . (o_. a Pd 4, 27ga APP 3`644 (4 1 1 L On May 23, 2014 the Sheriff levied upon the . defendant's interest in the real property situated in New Cumberland Borough, Known and numbered as, 110 3rd Street, 213 Market Street and 207 Walnut Alley, New Cumberland, as Exhibit "A" filed with this Writ and by this Reference incorporated herein. Date: May 23, 2014 By: et-ct(t4 k)AL0-10641 Real Estate Coordinator LXIII 29 CUMBERLAND LAW JOURNAL 07/18/14 Writ No. 2014-1046 Civil INTEGRITY BANK vs. CAPITOL PROPERTY MANAGEMENT, INC. Atty.: Clayton W. Davidson Tract One: ALL THAT CERTAIN lot or par- cel of Land, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more par- ticularly bounded and described as follows, to wit: BEGINNING at a point on the southern line of Third Street at line of lands now or formerly of Stuart K. Sterline, said point being Seventy and Five tenths (70.5) feet measured eastwardly along Third Street from the southeast comer of Third and Market Streets; thence North Fifty- three (53) degrees East along Third Street a distance of Fifty and Five tenths (50.5) feet to the lands now or formerly of Pres co International, Inc., prior grantor, and being the western line of a vacated alley; thence by the same South Thirty-seven (37) degrees East a distance of Two Hundred (200) feet to Second Alley (Sixteen [16] feet wide); thence South Fifty-three (53) degrees West by the northern line of Second Alley a distance of Fifty and Five tenths (50.5) feet to a point at land now or formerly of Stuart K. Sterline; thence by the same North Thirty-seven (37) degrees West a distance of Two Hundred (200) feet to THE PLACE OF BEGINNING. BEING the same premises which Leon P. Haller, Trustee in Bankruptcy for Presco International, Inc. granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated September 3, 1997 and recorded September 18, 1997 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 164, Page 742. Being known and numbered as 110 3rd Street, New Cumberland, PA. 28 Parcel no. 25-25-006-312. Tract Two: ALL THAT CERTAIN tract or parcel of land, together with the im- provements thereon erected, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and de- scribed as follows, to wit: BEGINNING at an iron pin at the northeastern comer of the intersec- tion of Walnut Alley (16 feet) and Second Street (50 feet); thence along Walnut Alley North 37 degrees 00 minutes West, a distance of 160 feet to a point; thence South 53 degrees West through Walnut Alley a distance of 166 feet to an iron pin at Market Street (66 feet); thence by Market Street North 37 degrees 00 minutes West, a distance of90 feet to a point on a 16 foot alley; thence by the same North 53 degrees East, a distance of266 feet to an iron pin at land now or formerly of the Consolidated Rail Corporation; thence by the same the following three courses and distanc- es: South 37 degrees East, a distance of 150 feet to an iron pin; thence North 53 degrees East, a distance of 20 feet to an iron pin; thence South 37 degrees East, a distance of 100 feet to an iron pin at Second Street; thence by Second Street South 53 degrees West, a distance of 120 feet to the Place of BEGINNING. BEING the same premises which Kennedy, Clionsky, King, a Pennsyl- vania General Partnership granted and conveyed unto Capitol Property Management, Inc., a Pennsylvania corporation by deed dated February 23, 2001 and recorded March 1,2001 in the Office of the Recorder of Deeds for Cumberland County in Deed Book 240, Page 156. Being known and numbered as 213 Market Street and 207 Walnut Street, New Cumberland, PA. Tax Parcel nos. 25-25-0009-320 and 25-25-0006-326. PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 COMMONWEALTH OF PENNSYLVANIA : : ss. COUNTY OF CUMBERLAND : Lisa Marie Coyne, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, viz: July 11, July 18 and July 25, 2014 Affiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. sa Marie Coyne, E4itor SWORN TO AND SUBSCRIBED before me this 5 da of Jul 2014 Notary COMMONWEALTH OF PENNSYLVANIA i NOTARIAL SEAL DEBORAH A COLLINS Notary Public CARLISLE 80R0., CUMBERLAND CNTY My Commission Expires Apr 28. 2018 The Patriot -News Co. x'900 Patriot Driye Mechanicsburg,' PA 17050 Inquiries - 717-255-8213 CUMBERLAND CO. SHERIFFS OFFICE CUMBERLAND COUNTY COURT HOUSE CARLISLE PA 17013 he patriot -fetus Now you know THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Act No. 587, Approved May 16, 1929 Commonwealth of Pennsylvania, County of Dauphin) ss Amy Kotula, being duly sworn according to law, deposes and says: That she is a Staff Accountant of The Patriot News Co., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 1900 Patriot Drive, in the Township of Hampden, County of Cumberland, State of Pennsylvania, owner and publisher of The Patriot -News and The Sunday Patriot -News newspapers of general circulation, printed and published at 1900 Patriot Drive, in the City, County and State aforesaid; that The Patriot -News and The Sunday Patriot -News were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday/ Community Weekly editions which appeared on the date(s) indicated below. That neither she nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That she has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot -News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of Dauphin in Miscellaneous Book "M", Volume 14, Page 317. 1 2014-1046 CIA Term INTEGRITY BANK vs. CAPITOL PROPERTY MANAGEMENT, INC. Atty: Clayton W. Davidson Tract One: ALL THAT CERTAIN lot or parcel of Land, situate in the Borough of New Cumberland, Cumberland County, Pennsylvania, more particularly bounded and described as follows, to wit: BEGINNING at a point on the southern line of Third Street at line of lands now or formerly of Stuart K. Sterline, said point being Seventy and Five tenths (70.5) feet measured eastwardly along Third Street from the southeast comer of Third and Market Streets; thence North Fifty- three (53) degrees East along Third Street a distance of Fifty and Five tenths (50.5) feet Lam- uciandd now or formerly of Presco International, Inc., prior grantor, and being the western This ad ran on the date(s) shown below: 07/13/14 07/20/14 07/27/14 Sworn to and subscribed before me this 20 day of August, 2014 A.D. ry Public COMMONWEALTH OF PgNtipnyANIA NOTARIAL SEAL Sheryl Marie Leggore, Notary Public Hampden Twp., Cumberland County My Commission Expires July 16, 2018 MEMBER, PENNSYLVANIA ASSOCIATION OF NOTARIES