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HomeMy WebLinkAbout14-1487Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & S1NON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 Phone: (717) 233 -5731 Fax: (717) 231 -6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, • • • • • • • • and CHON MOTEL ENTERPRISES, INC., Defendants iE PROT ON, E,': i; 2011111AR 13 PM 2: 14, CU PENNS ND COUNTY LVAN �, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. /4/- e,„/z CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrants of attorney, the originals or true and correct copies of which are attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against the Defendants, including per diem interest and costs from the date of judgment and costs of collection, as follows: Principal sum: $3,465,533.77 Interest: $81,954.80 Late Charges: $27,303.59 Other Charges: $69,570.67 SUB -TOTAL $3,644,362.83 *Interest accrues at per diem rate of $572.78, as indicated through March 7, 2014. ATTORNEYS' FEES $10.000.00 d1/4. c� pJ TOTAL $3,654,362.83 R13o2 9.2? By: Date: March "2014 Respectfully submitted, RHOADS & SINON LLP Kat yn D. S Holly L. Cli One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233-5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads- sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 `1 Phone: (717) 233 -5731 Fax: (717) 231 -6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL`ENTERPRISES, INC.; Defendants • • • • • • • • • • • • • • r' _ THE r L O -U FILE. E PROTHONO 1ARY 20R fl ,R 13 PI 2: ti-3 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. � I� ilIV COMPLAINT IN CONFESSION OF JUDGMENT �/m NOW COMES Plaintiff Susquehanna Bank, by its undersigned attorneys, Rhoads & Sinon LLP, and files the within Complaint in Confession of Judgment, stating as follows: 1. Susquehanna Bank (the "Bank ") is a Pennsylvania Banking Institution with a principal place of business located at 1826 Good Hope Road, Enola, Cumberland County, Pennsylvania 17025. 2. The Bank is the successor by merger to Graystone,Bank, a Division of Graystone Tower Bank. 3. Defendant Chang Mun Chon ( "Mr. Chon ") is an adult individual with an address of 227 Ewe Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 934558.1 10. Mr. and Mrs. Chon failed to make the November 2013, December 2013, January 2014 and February 2014 monthly loan payment for the Note. 11. As set forth above, Mr. and Mrs. Chon defaulted under their obligations for the Note in failing to make the required monthly payments. 12. On February 3, 2014, the Bank sent notice of default to Mr. and Mrs. Chon and Guarantor Defendant Chon Motel, declaring an event of default for failure to pay under the Note and notifying Mr. and Mrs. Chon and Chan Motel of such event of default and, although not necessary under the relevant documents, provided Mr. and Mrs. Chon with an opportunity to cure such default by payment on or before February 13, 2014. (A true and correct copy of the Notice of Default is attached hereto as Exhibit "C" and incorporated herein by reference). 13. Following receipt of the Notice of Default, Defendants failed and refused to pay the obligations under the Note which constitutes a default under the Note, as well as the Guaranty. 14. The Note contains the following confession of judgment provision which empowers any attorney of any court of record to appear for and enter judgment against Mr. and Mrs. Chon and in favor of the Bank: 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 ($500.00) 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. (See Exhibit A.) 15. The Guaranty for the Note contains a nearly identical confession of judgment provision which also empowers any attorney of any court of record to appear for and enter judgment against Guarantor Defendant Chon Motel and in favor of the Bank. (See Exhibit B.) 16. Further, Mr. Chon and Mrs. Chon, in both their personal and corporate capacity, each executed a Disclosure for Confession of Judgment ( "Disclosures ") expressly acknowledging, inter alia, that the Note and/or Guaranty contains a confession of judgment provision that would permit the lender to enter judgment in court without advance notice or without offering an opportunity to defend. (True and correct copies of the three (3) separate Disclosures are attached hereto as Exhibit "D" and incorporated herein by reference). 17. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 18. The above referenced Note has not been assigned. 19. The Guaranty referenced herein has not been assigned. 20. Judgment has not been entered on the Note or Guaranty in any jurisdiction. 21. Judgment in favor of the Bank and against Defendants is demanded as authorized by the warrants of attorney contained in the Note and Guaranty. 22. The actual amounts presently due and payable to the Bank under the Loan and/or Note is itemized as follows: Principal sum: $3,465,533.77 Interest: $81,954.80 Late Charges: $27,303.59 Other Charges: $69,570.67 SUB-TOTAL $3,644,362.83 *Interest accrues at per diem rate of $572.78, as indicated through March 7, 2014. ATTORNEYS' FEES $10,000.00 TOTAL $3,654,362.83 WHEREFORE Plaintiff Susquehanna Bank demands judgment in its favor and against Defendants Chon Motel Enterprises, Inc. and Chang Mun Chon and Sun Yi Chon, jointly and severally, in the amount of $3,654,362.83 together with accruing interest at $572.78 per diem, costs of suit, attorneys' fees, and such other charges as authorized by the warrants contained in the Note and Guaranty referenced herein. By: Date: March 13, 2014 Respectfully submitted, RHOADS & SINON LLP Kat yn D.:� ie Holly L. Cli One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233 -5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes VERIFICATION Robert Rahal, deposes and says, subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, thatA—is Vice President for Susquehanna Bank, that-s4 makes this verification by its authority and that the facts set forth in the Complaint in Confession of Judgment are true and correct to the best of her knowledge, information and belief. /// Date Robert Rahal EXHIBIT "A" PROMISSORY NOTE Borrower; Chang Mun Chon Sun YI Clean 227 Ewo Road Mechanicsburg, PA 17055 Lender; Orayslono Bank, a Divlsloh of Graystone Towor Bank Capital Region 112 Market Street Harrisburg, PA 17101 Principal Amount: 53,800,000.00 Date of Note; September 15, 2010 PROMISE TO PAY. Chang Mun Chon end Sun YI Chon ('Borrower') Jointly and severally promise to pay to Grayslone Bank, a bleision of Oraystono Tower Denk (Londe('), or order, in lawful money of the United States of America, tho principal amount of Throo Million∎Eight Hundred Thousand & 001100 Dollars ($3,000,000,00), togothor with Interest on rho unpald principal batence from September 15, 2010, catcuieted as described to the "INTEREST CALCULATION METHOD' paragraph vying an Interest rata of 5,950% per annum based on a year of 300 days, until pald In full, Tho Intarosl role may change undor the,larms and conditions of the "INTEREST AFTER DEFAULT" section, PAYMENT. Borrower will pay this loan, In 60 rogutar payments of $27,303,66 each and ono Irregular last paymont osUmated et $3,255,2$5,09. Borrower's first payment le due October 15, 2010, and all subsequent payments aro duo on tho same day of each month after That, Borrowor's final paymont will be due on September 16, 2015, and will bo for all principal and all accrued Interest not yol paid, Payments Inctudo principal and Interosh Unless otherwise agreed or roqutred by applicable law, payments will bo applied first to any aeeruod unpald Intarosl( than to principal; than to eny late charges; end then to any unpaid cdllectlon costs. Borrower will pay Lender at Lender's address shown above or at such other pieta as Lcndor may designate in writing, INTEREST CALCULATION METHOD, Inioresl on this Nolo to computed one 365/300 bass; that is, by applying the ratio of the lntorost rate over a year of 300 days, multiplied by the, eutetanding principal balance, multlpiled by the actual number of days the principal balance is oulstanding, Ali Interosl payablo ondor this Nolo is computed using this method, PREPAYMENT PENALTY, Borrowor egress that all loon fees end other prepeld financo charges aro oamad filly es of tiro dale of the lean and will not be subject to rotund upon early paymont (whether voiuntary or os o result of default), oxcopt as olhenwls° required by Sew. Upon prepayment of thls Note, Lender Is °Wiled to the following prepayment penally: A prepayment No will bo charged If the Note Is prepaid, In whole or In part, during the nxod rate period. The faa wet be calculated et two portent (2 %) of the principal amount prepaid. A prepayment feo will not be charged on any amount (up to 10% of the eurront principal amount) prepaid within any loan year from Internatty generated funds. The term "loan yoar" 1$ defined as any period of nna year eoramonolng on the closing date or any anniversary dale thereafter, Except for the foregoing, Sorrow may pay ail or a porllon of the (mount owed oarllor than it Is due. Evilly payments will not, unless agreed to by Lender In waling, relieve Borrower of Borrowor's obtlgallon to continua to meke payments under the paymont schedule. Rather, early payments will reduce the principal batonco due end may result In Borrower's making rower payments, Borrower agrees riot to sand Lender payments marked 'paid in full', 'without recourse`, or similar tsnguage. If Borrower sends such a payment, Lender may accept It without Dosing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender, All written comrnunloagons concerning disputed amounts, Including any chock or other payment Instrument that Indicates that the payment constitutes' paymont in full` of the amount mad or that Is rendered with velar conditions or Ilmilalfons or as full salistocgon of a disputed amount must be marled or delivered to; GRAYSTONE TOWER BANK, 1828 Good Hope Road Enola, PA 17026. (.ATE CHARGE. if n paymont is 15 days or Moro Salo, Borrower will be charged 10,000% of rho regularly scheduled payment or 3250,00, whlchavorle greater, INTEREST AFTER DEFAULT. Upon default, Including failure to pay upon final moturity, the Inlorost rote on this Note shall be increased by 2.000 percentage points. If Judgment is onterod In connoctlon with this Note, Interest will continuo to ocoruo after the deto of Judgment e1 the veto In affect at the lime judgment Is onlored, However, In no overt will the interest rote cooed lire maximum Interpol rote Fmeationa under applicable law, DEFAULT. Each of the following shall constitute an event of default ('Event of Default') under this Note; Payment Dofoult Borrowor fails to make any pnyrnent when due under this Nolo, Olhor Dofeufls. Borrower fouls to comply with or lo perform eny otter tom, obligation, covenant or condlllon contained In Ibis Nolo or in any of rho related documenle or to comply with or to perform any Corm, ob00etton, o°vonanl or condition eonteined In any other agreement between Lender and Borrower. False Statements, Any warranty, reproscnlolJon or statement made or furnished to Lcndor by Borrower or on Borrower's behalf undor this Note or tho roie1od documents Is (also or misleading In any meieriel rospool, e&lher now or al the lion made or Mrnlshed or becomes foists or misleading al any limo thereafter, Dead( or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence 05 a goktg buelnass, Oro Insolvency of Borrower. the appointment of o receiver (or any port or Borrowor's property, any esslgnmenl for rho benefit of creditors, any type of creditor workout, or the commencemont of any proceeding under any bankruptcy or Insolvency laws by or ogatn(1 Borrowor, Crodllor of Forfeiture Proceedings, Commoncemenl of foreclosure or forfeiture proccodings, whelher by Judicial proceeding. self -help, repossession or any other method, by eny creditor of Borrower or by any govommonlat agency against any collateral socuring rho loon. This Includes a garnishment of any of Borrowor's accounts, including deposit eccounts, with Lender, However, No Event of Dofauit shall not apply if tiro is a good faith dispute by Borrower as to the vauldity or reasonableness of the claim which Is rho basis of the creditor or forfeiture procsadtng end H Borrower gives Lander written notice of tiro creditor of folfolluro proceeding end deposits with Lando( monies or a surety bond for tho creditor or forfeiture proceeding, In an amount determined by Lender, In Its solo discretion, es being an adequate roservo or bond for the dlspulo. Events.Affocllne Ovarantor, Any of the preceding events occurs with respect to any Guarantor or any of the tndebtedness or any Guarantor riles or bocomoe incompetent, or revokes Or dispules the velldlty of or liability under, any guaranty of iho 'Indebtedness evldeetced by this Note, Adverse Change. A material adverse chengo occurs In Borrower's financial condllion, or Lender believes tho prospect of payment or performance of this Nola Is Impalrod, Cure Provisions. If any default, other than a default In payment is curable and If Borrower has not bean given a notice of a breach of the same protrislon of Ihts Note within the preceding hvolvo (12) months, It may be cured If Borrowor, alien Lender sends written notice to Borrowor demanding 015 of such default: (1) cures the default within fifteen (16) days; or (2) lithe cura requkos more Then nftoon (16) days, Immadlatety initiates steps which Lender deems In Lender's sore discretion to be sufficient to cure the default and Ihorooftor continuos and compiotos flit reasonable end nocessary slope aufricionl to produce compliance as soon as reasonably practical, LENDER'S RIGHTS. Upon default, Lender may, after giving such notices es required by apppeobio law, declare tho °»tito unpaid principal belenco under this Nola and all accrued unpald Inlorost Immediately due, and then Borrower will pay that amount, PROMISSORY NOTE Loan No 4000009822 {Continued) Page 2 ATTORNEYS' FEES; EXPENSES, Lender may hire or pay sornoone.elsa to help collect this Nolo it Borrowor doos not poy. Borrower will pay Lendor that amount. This includes, subject to any limits under appkoabla law, Londer's reasonable attorneys' fees and Lender's legal expenses. whether or not there is a lawsuit, Including reasonable attorneys' fees, expenses for bankruptcy proceedings (lncludlno efforts to modify or vacalo any eutometic slay or Injunction), and appeals. If not prohibited by applicable law, Borrower also will poy any court costs, in addition to en other sums provided by taw. JURY WAIVER, Lendor and Borrower hereby waive tho right to any jury trial In eny eclien, proceeding, or countoralelm brought by oithor Lender or Borrower egalnsl the other, - GOVERNiNG LAW. This Note will bo governed by federal law applicable to Lender end, to the extent not preempted by federal law, the laws of the Commonwealth of Pennsylvania without regard to its conflicts of taw provisions. This Moto has been accepted by London In the Commonwealth of PenneyNarita. CHOICE OF VENUE. If there Is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent pormitled by applicable law, Lender roomers n right of setoff to all Borrower's accounts with Lender (whether checking, sovings, or some other account), This Includes oil accounts Borrower holds Jointly with someone else and ell accounts Borrower may open In the future, However, this does not Include any IRA or Koogh accounts, or any trust accounts for which setoff would bo prohibited by law. Borrower authorizes Lender, to the extent parmltted by applicable law, to charge or setoff ell sums owing on the Indabtedneos egalnsl any and aft such accounts. SECURITY. All collateral (as herein defined) is security !or tide Noto end any renewals, extensions find modifications thereof, and tho payment, performance and discharge of all other present or future indebtedness, obligations and undertakings (whothor indMduel, Joint, several, dlrooi, contingent or othenvlse) of the Borrower to or for the benefit of Lander, vrhother arising directly to Lender under this Note or under any other agreement, promissory note or undortokings now existing or herolneftor ontered Into by the Borrower to the Lender. The terra 'Collateral'. Inc ludes nil tangible and intangible property (I) described In eny mortgage, pledge, assignment or oilier security document sepnrnteiy executod in favor of Lender, end (if) In which a security interest has been granted to Lender pursuant to this Note. SUCCESSOR INTERESTS. Tho Corms of this Noto shall Do binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall Inure to the benefit of Lender and its succossora and assigns, GENERAL PROVISIONS. if any part of This Nate cannot be enforced, this tact will not affect the rest of the Note. Lender may delay or forgo enforcing any of fls rights or temodfes under This Note without tasing Thom. Each Borrower undorslands and agrees that, with or without notice to Borrowor, Lender may with respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) altar, compromise, renew, extend, accelerota, or otherwise change one or more times tho time for payment or other terms of any indobtodnoss, Including increases and decreases of the rata of Interest on tho indebtedness; (o) exchanga, enforce, waive, subordinate, fall or dadda not to perfect, and release any security, with or without iho substitution of now collateral; (d) apply such security end direct the order or rnannor of sale thereof, including without iimilatian, eny non - judicial sato patmitied by tho terms of the controlling security agrooments, as Lender In Its discretion may determine; (e) release, substitute. agree not to sue, or dont with any ono or more of Borrower's mottos, endorsers, or other guarantors on any terms or In any manna( Lender may choose; and (f) deterrnino how, when and what application of payments end credits shall bo made on any other indebtedness owing by such other Borrower, Borrower and eny other person who signs, guarantees of endorses this Note, to the extent allowed by law, waive presentment. demand for payment, and nonce of dishonor. Upon any change In the torms of this Nate, and•uniess otherwise expressly staled In writing, no party who signs this Note, whelhor as maker, guarantor, accommodation maker or endorser, shall be released from liability, All such parties agree that Lender may renew or extend (repeotedty and for say length of Ume) this ban or release any party or guarantor or collateral; or Impair, fall to realize upon or perfect Lender's security !Maros( to the collatoral; and take any other action deemed nocessory by Lender without the consent of or notice to anyone. NI such parties also agree that Lender may modify this loan without the consent of or nonce to anyone other than the party with whom the modification Is made. Tho obligations undor this Note ere joint and sevorol. if ony portion of this Note Is for any reason delotm'nod to be unonforceablo, it will not /Hoot tho enforceability a( 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 ELSEV'l1•IERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILEO, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND All. ACCRUEO INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR AOVANCED 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 ANC) 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 AE 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 11075, BORROWER HEREBY WAJVES 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, EAOH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS Of THIS NOTE. EACH BORROWER AGREE& TO THE TERfr1S OF THE HOTS. DORROWER ACKNOWLEDGF..S RECEIPT OF A COMPLETED COPY OF THiS PROMISSORY NOTE. THIS NOTE IS GNEN MOM SEAL AND IT 15 INTENDED THAT THiS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW, BORROWER; X Chang Mun Chon (Seal) Loan No 4000009822 PROMISSORY NOTE (Continued) Page 3 LENDER; ORAYSTON 0 NK, A DIVISION OF GR TOWER BANK 1.4041t9 11.4. YY.i;MI I..X.VvIO. I.I. Tl no Hfy4 fursy •M P.1GILiVTIM T+<EC4 MI EXHIBIT "B" COMMERCIAL GUARANTY Sorrowor: Chang Mun Chon Sun VI Chon 227 Ewe Road Mochenicebdrg, PA 1705 Guarantor: Chou Motel Enterprises, Inc. 227 Ewe Road Mochan(csburg, PA 17055 Lander: Oreystono Berk, a Division of oroystone Tower Rank Capital Region 112 Market Street Horrisburg, PA 17101 CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE, For good and valuable consideration, Guarantor absolutely and unconditionally guarenteos full and punctual payment end satisfaction of tho indobtedness of Barrowor, or any one or more of thorn, to Lender, end the performance and discharge of all Borrower'o obligations under the Note and the Related Documents, This Is a guaranty of payment and porlormanco and not of collodion, so Lender can enforce thls Guaranty against Guarantor even when Lender has not exhausted Lender'e remodles against anyone else obligated to pay the Indebtedness or ogaInst any collateral securing the Indobtedness, this Gvetenly or any other guaranty of the Indebtedness. Guarnntor Will make any payments to Lender or its order, on demand, In legal lender of the United States of America, In same•day funds, without sel•off or deduction or counterclaim, and will otherwise perform Borrower's obligations under the Note end • Rotated Documents. Under this Guaranty, Guarantor's (lability is unllmfled and Guarantors obligations aro continuing. INDEBTEDNESS. The word "Indebtedness' es used In thls Guaranty means ell of tho princlpni amount outstanding from lima to time and at any one or more times, ocooed united Interest thereon end al collodion costa and repot exponces rotated theroto permiltod by raw, reasonablo attorneys' fees, arising from any and all debts, Ileblfllos and obligations of every nature or form, now exlsttng or hereafter arising or acquired, that Borrower Indlvlduetly or collectively or interchangeably with others, owos or will owe Lender, ° indebtedness' Includes, Without limitation, loans, advances, debts, overdraft Indoblednees, credit card Indabiodnoes, lease obilgallons, Ilabiliiles and obligations under any Interest rote protection agreements or foreign currency exchango agreements or commodity prtco protection agreements, other obligations, and fab510es of Borrower, or any one or more of thorn, and any present of future judgments against Borrower, or any one or more of them, future advances, loans or trensocuona that ronow, extend, modify, raflnanco, consolidate or substitute these debts, liabilities and obltgations whether, voluntarily or Involuntarily incurred; duo or to becomo duo by lhelr terms or acceleration; absolute or contingent; iiquidated or untiquidated; delerrntned or undetermined; direct or indirect; primary or secondary in naturo or arising from a guarnnty or surety; secured or unsecured; Joint or several or joint and sovaral; evidenced by a negotiable or non•nogotiable Instrument or writing; originated by Lender or another or othors; barred or unonforcoablo against Borrower for any reason whatsoever; for any trenssollons that may bo voidable for ony reason (such es Infor,cy, insanity, ultra vitas or othervAso); and orfgineted then reduced or exlingulshod and then afterwards Increased or reinstated. if Lender presoatiy holds one or more guaranties, or hereafter tocolves additional guaronttes from Guarantor, Landers tights under all guaranties shall be cumuiativ0. This Guaranty sheir not (unless apecificaly provided bolow to tho contrary) alfoct or Invalidate eny such other guaranties.' Guarantors I;nhtlity will be Guarantors nggregate liability undo, the terms of This Guaranty end any such other untermineled guaranties. CONTINUING GUARANTY. THIS IS A 'CONTINUING GUARANTY" UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER, OR ANY ONE OR AFORE OF THEM, TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS. ACCORDINGLY, ANY PAYMENTS MADE ON THE. INDEBTEDNESS WiLL NOT DISCHARGE OR DIMINISH GUARANTOR'S OBLIGATIONS AND LIABILITY UNDER THiS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEONESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TIME. DURATION OF GUARANTY. This Guaranty will lako offoel when received by Lender without the necessity of ony acceptance by Lender, or any notice to Guarantor or to Borrower, and will oonunua In full force until all Iho indebtedness Incurred or contracted before receipt by Lender of any notico of revocation shall have boon rutty and flnelly paid and satisfied and ell of Guarantors other obligations under This Guaranty shall have boon performed In full, if Guarontor elects to rovoko this Guaranty, Guarantor may only do so In writing, Guerontora written nonce of revocation must bo mailed 10 Lender, by certified mall, el Lender's eddrose listed above or such other piece as Lender mny deslgnato In writing. Written revocation of this Gu wanly will epply only to new indebtedness created odor rictus' (ocelot by Larder of Guarantor's written revocation. For this purpose and without limitation, the corm "now Indebtedness' doos not Include the Indebtedness which et the limo of notico of revocation Is contingent, uniiquldated, undetermined or not duo and which later becomes obsolute, llquldated, determined or due. For this purposo and without limitation, now Indebtedness' doos not include aS or pall of the indebtedness that Is: Incurred by Borrower prior to revocation; Incurred under a commitment that became binding before rovoontlon; any ronowals, extensions, eubeiitutions. and modifications of the Indebtedness. This Guaranty shall bind Guarantor's estate as to the indoblodnoss created both before and after Guarantor's death or Incapacity, regardloss of Londer's actual notice of Guaronlor'e doalh, SuhJool to rho foragoing, Guarantor(' executor or administrator or othor logol roprosantenve may lerrninoto this Gvarenty in tho same mannor In which Guarantor might have 1erminalod 11 and with the same effect. Release of any other guarantor or termination of any other guaranty of thb Indebtedness shall not oftoet tho ilability of Guarantor under Vita Guaranty. A revocation Londor recaivoe from any one or morn Guarantors shell not oftoet tho liability of any remaining Ouorontore under 'hie Guaranty. It Is anticipated that fluctuations may occur In the aggregate amount of the Indebtedness covorod by this Guaranty, and Guarantor speeltloaliy aoknowiodgoe end agrees that reductions In the amount of the Indebtedness, even to zero dollars (50.00), shell not constitute a termination of this Guaranty, This Gvaronty Is binding upon Guarantor and ouarantoes heirs, successors and assigns so long as any of the Indebtedness romalns unpaid and even though the rndobtednoss may from time to time be zero dollars (50.00). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authdrizos Lender, either before or after any revocation homer, without notico or demand end without loosening Guarantor's {lability under this Guaranty, front limo to limos (A) prior to revocation es get forth above, to make ono or moro oddittonni secured or unsecured loons to Borrower, to loose equipment or other goods to Borrowor, or otherwise to oxtend additional credit to Borrower, (B) to otter, comprOmiso, renew, extend, eocelereto, or othonvise change one or morn limes the limo for payment or other terms of the Indebtedness or any part of tho indebtedness, including Increases and decreases of the rate of Interest on the indebtedness; exienslons may bo repeatod and may be for iongor than tho original loan term; (C) to take end hold security for the payment of this Guaranty or tho Indebtedness, and exchange, onforco, wolve, subordinalo, tall or decide not lo perfoct, end release eny such security, with or without tho aubotilutton of new collateral; (0) to release, substitute, agree not to sue, or doal with any ono or more of Dorrowcr's sureties, endorsors, or other guarantors on any torme or In any manner Lender may choose; (5) to determine how, when and what epplcauon of paymonls and credits shall bo made on tho Indebtedness; (P) 10 apply such security and diroct the order or manner of sato therool, including without limitation, any non udlcial sale permitted by tho terms of the controlling security agreement or deed of trust, es Lender In ire discretion may determine; (0) to sell, transfar, assign or grant participetl0ns In all or any part of the Indebtedness; and (H) to assign or transfer title Guaranty In whole or ih part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES, Guarantor ropresants and warrants to Lander that (A) no reproso0tottone or agreements of any kind heve been made to Guarantor which would limit or qualify in any way the terms of thin Guaranty: (B) this Guaranty is executed et Borrowers request and not at the request of Lender; (C) Guarantor has full power, right and aulhorlly to onter Into this Guaranty; (D) tho provisions of thls Guaranty do not conflict with or result 10 o default under ony ogroemont or other Instrument binding upon Guarantor No: 4000009822 COMMERCIAL GUARANTY : (Contltiiled);r:F: '; Pogo 2 and do not rosult In a vlolaUon of any few, mgutatbnt court decree or order appheoble to Guaronlm;..(E). Guarantor has not ertd wIll not, without the prior written consent of Londor, soil, loose, assign, encumber, hypothecate, transfer, or otherwise dlsposo of all or substantially ell of Guarantor's ascots, or any interest therein; (F) upon Lender's request, Guarontor will provldo lo.Lendor financial and credit Information In form acceptable to Lender, and all ouch financial information which currently has bean, and all fuldre financial Information which will be provided to Lender Is and will bo truo and correct In all malarial rospects and fatly preseht Guarantor's financial condition as of the dates the financial Information Is provided; (G) no materiel adverse change has occurred In Guarantor's financial bondition since the dote of the most rocont financial statemonts proddad to Lander and no avant has occurred which may materially' adversely affect Guarantor's financial condition; (H) no Htfgntton, claim, fnveslfgatfon, admlnlslraUvo proceeding or similar action (Including those for unpaid texas) ogainsl Guarantor Is pending or lhrealoned; (0 Lendor has made no ropresontellon to Guarantor os to the credihvorthlnass of Borrower; and (J) Guarantor has established adequate moans of obtaining from Borrower on a conitnuing basis Information regarding Borrower's (Mandel condition. Guarantor agrees to keep adequately Informed from such moans of any facie, avonis, a circumstances which might In any way affect Guarantors rlsks under (his Guaranty, and Guarantor further ewes that Lender shall havo no obligation to disclose to Guarantor any Information or documents acquired by Londe( In the course of Its relattonshlp oath Borrower. GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following: • Tax Returns, As soon os avallebte, but In no avant letor than sixty (00) days after tho applicable filing data for the tax reporting period ended, Fedorsl and other govornmonlat tax returns, prepared by a certified public accountant aallsfaclory to Lender. Ail Mandel reports roquirod to be provided under this Goerany shop be prepared In accordance with GAAP, oppfied on a consistent basls, and certi lod by Guarantor as ba'ng tore and corroct, GUARANTOR'S WAIVERS. Except as prohibited by applicable low, Guarantor waives any right to tequko Londe( (A) to continue lending money or to extend other credit to Borrower; (8) to make any presentment, protest, domand, or notice of any kind, Including notice of any nonpayment of the indebtedness or of any nonpayment related to any cdltatnrol, or nottoo of any action or nonedlon on tho port of Borrowor, Lender, nay surety, endorsor, or other guarantor In connection with OA fndebtedness or In connection with tho croation of new or additional loans or obligations; (C) to resort for payment or 10 proceed directly or al once against any person, Including 8orrowet or any other guarantor; (0) to proceed directly against or exhaust spy collateral held by Lender from Borrower, any other guarantor, or any other person; (0) to give notco of the Corms, time, and place of any public or private salo of personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Cornmorctat Code; (F) to pursuo any other romody within Lenders powor, or (G) to commit any act or omission of any kind, or at any time, with respect to any motto( whatsoovor, Guarantor also wolves any and all rights or detonses based on suretyship or Impolrmont of collaleraf including, but not ilntitod to, any rights or detonses arising by reason of (A) any 'one action' or'entt.dofdency' law or any other law which may prevent Londor from bnnging any action, Including a claim for dofidoncy, against Guarantor, beforo or alter Lender's commencement or completion of any foreclosure action, oithor Judicially or by oxarctse of a power of sale; (B) any elecUon of remedies by Lender which deahoye or otherwise adversely effects Guarantors subrogation rights or Guarantors rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may sutra: by reason of eny law limping, qualifying, or discharging the lndabladnoss; (0) any disability or other defonso of Borrower, of any other guarantor, or of any olhor person, or by reason of the cessation of Borrowers (lability from any causo whatsoever, other than payment in fut In legal tondo(, of the Indebtedness; (0) any right to doh discharge of the indebtedness on the hasla of un)ualified impairment of any collateral for the Indobiednoss; (0) any stalulo of Ilmltallons, 11 at any time any cotton or Gull brought by Lender against Guarantor Is commsncod, there Is outstanding Indebtedness which Is not barred by any applionbio statute of !Imitations; or (F) any defenses given to guarantors at 1aty or In equity other than actual payment end performance of the tndebtednoss, 1f paymont Is made by Borrower, whathor votunleriiy or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit (ho amount of that payment to Borrowers trustoo in bankruptcy or to any similar parson undo( any federal or state bankruptcy law or law for Oho relief of debtors, the lndebtodnoss shall be considered unpaid for the purpose of tho enforcement of this Guaranty. Guarantor further we)vos and axons not to assert or dotal at any time any doductIons to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, coupler demand, rocoupmont or similar right, wholher such doh, demand or right may be a6sortod by Cho Borrower, the Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants end agrees that oath of (ho waivers set forth above Is made with Guarantor's full knowfedgo of Its slgnlfteanca and consequences and (hot. under the dreumstances, the welvors are reasonable and not contrary to public policy or few. if any such wolvor Is determined to bo contrary to any applIcribla law or public policy, ouch wavier shall be effective only to the extent porrnitted by law or pubilo policy. RIGHT OF SETOFF. To tiro extort( pormltted by a pticobto law, Londor reserves a right of setoff In oil Guerontarn accounts with Lender ( whother checking, savings, or some other account). This Includes all accounts Guarantor holds Jointly with someono also and ell accounts Guarentor may open In the future. Howovor, this does not lncludo any IRA or Keogh etcounls, or any trust Accounts for which setoff would be prohlbltod by law. Guarantor authartzos Lender, to the extent permitted by applicable law, to hold these funds If thorn Is a dofaull, and Lender may apply the funds In theso accounts to pay whot Guarantor owes under the terms of this Guaranty, SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR, Guarantor agroos Ural the Indsblodnass, whether now existing or hereafter created, shell bo superior to any clalm that Guorantor may now havo or hereafter acquiro against Dorrowar, whether or not Borrower becomes Insolvent. Guarantor hereby expressly subordinates any Balm Guarantor may havo against Borrower, upon any account whalsoavor, to any claim that Londor may now or horoefter have against Barroom'. In the event of insolvenoy and oonsoquont tlquldation of Cho Malt of Borrower, Through bankruptcy, by an assignment for Iho bonetl of creditors, by voluntary liquldaUon, Of otherwise, tho assets of Borrower applicable to the paymont of lha claims of both Londor and Guarantor shat be paid to Lender and shall be first applied by Landon to the Indebtedness. Guarantor does horoby assign to Lender all claims .which it may have or acquire ogalnst Borrower or wins! any assignee or trustee in bankruptcy of Gorrower, provided however, that such asslgnrnonl shall be affecllvo only for the purpose of assuring to Londor full paymont in legal lender of Ore Indebtedness. If Lender so roquosts, eny notes or credit agreements now Or horoattor evidencing any debts or obligations of Borrower to Guarantor shag be marked with e legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender Is hereby authorized, In the name of Guarantor, from lime to time to file financing statements and tontlnual1on statements and to oxocute documents and to take auch other actions as Lender dedme necossary or appropriate to perfect, preserve end enforce its rights under this Guaranty. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Arnandments. This Guaranty, together with any Related Documents, constliutos the entire understanding and agreement of the patios as to the'motlers set forth in Ihls Guaranty. No alteration 01 or omondmont to lhts.Ousranly shall Po effective unless given In writing and signed by the party or paritos sought to be charged or bound by the allerallon or amondntonl. Attorneys' Fces; Expenses. Guarontor agrees to pay upon demand all of Lenders costs and oxpensos, Including Lender's reasonable attorneys' fees and Lender's legal expenses, Incurred In connoction with the onforcemonl of this Guaranty. Londor ntey hlre or pay Loan NO: 4000009822 COMMERCIAL GUARANTY (Continued) Pape 3 someone oho lo help enforce thls Guaranty, and Guarantor shell pay tho costs an expenses of such enforcement. Costs and expenses Include Lender's reasonable sttorneye' foes end legal oxpensee whether or not there h a lawsl111, Including reasonable attorneys' tees and regal expenses for bankruptcy proeeodings Since/ding efforts to modify or vacate any eutomellc stay or injunction), appoels, and any anticipated post- judgment collection Sorelces. Guarantor also shell pay all court costs and such additional fees as may bo directed by Iho court. Caption Readings. Caption hoadings In this Guaranty aro for txmvon'ence purposes only and ere not to bo used to Interpret or define the provlslors of lhls Guaranty. OovernIne Law, This Guaranty will be governed by federal law applicable to Lender and, to tho cxiont not preempted by federal taw, iho lows of rho Commonwealth of Pennsylvania without regard to its conflicts of law provisions. Choice of Venue. If thorn Is a lawsuit, Guarantor agrees upon Lender's roquosi to submit to the Jurlsdicuon of the courts of Dauphin County, Commonwonith of Pennsytvante. Integration. Guaronlor further woos that Guarantor hes read and fully understands Ma torrru of this Ouomniy; Guarantor has had the opportunity to bo advised by Guarantor's Mornay with respect to ado Guaranty; Uro Guaranly fully reftecte Guarantors Inlonl1ons end patol ovldence Is not required to Inlorprel the terms of thls Guaranly. Guarantor hereby IndomnInos•and holds Lander hornless from all losses, claims, damages, and costs (includ 1 Lender's ottorneye fees) suffered or Incurred by Lander es a result of any broach by Guarantor of tho warranties, representations end agreemonts of this paragraph, interpretation, In all cases where there Is rnoro than one Borrower or Guarenlor, then all words used In This Guaranty In the singular shall be deemed to have been used in Iho plural where the contoxl and construction so requtro: and where there Is more than one Borrower named In this Guaranty or when this Guaranty is executed by mono then one Guarantor, the words 'Borrower' and 'Guarantor' respecVNoty shall moan all and any ono or more of them, The words 'Guarantor," 'Borrower,' and 'Lunches' Includ0 rho hells, successors, assigns, and Transferees of each of therm If a court finds that any provision of this Guaranty 15 not yard or should nol be enforced, (het fact by Itself will not mean that the rest of (his Gunranly will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of This Guaranty even If a provision of this Guaranty may be found to be invalid or unenforceable. if any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entitles, It Is not necessary for !.ender to inquire Into the powers of Borrower or Guarantor or of the officers, dtreclors, partners, managers, or other agenls acting or purporting to act on their betlolf, and any lndeblodnoss made or created In rokance upon the professed exercise of such powers shall bo guaranteed under lids Gunranly, Notice °. Unless olhenvise provided by applicable low, any notice requ'rod to bo givon under this Guaranly shall be given In writing, end, except for revocation notices by Guarantor, ewe be effective whon actually doitvared, when actually received by telofecslmite (unless otherwise requtrod by low), when deposited with a nationally recognized overnight courier, or, If melted, when deposited In the United Steles mail, as oral ohms, certified or registered mall postage prepaid, directed to the addresses ohown near the be©Inning of this Guaranty. All revocation notices by Guarenlor shell be In writing and shell bo efraolive upon delivery lo Lender as provided in the notion of Ih1s Guaranty ()Milled 'DURATION OF GUARANTY.' My party may change ITS address for nollcee under this Guaranty by giving formal Written notion to the other ponies, spodfying that the purpose of the notico Is to change tine party's address, For rodeo iwrposos, Guarantor agrees to keep Lender Informed at all limos of Guarantor's current address, Unless otherwise provided by applicable law, If [hero Is more than one Guarantor, any notice givon by Lender to any Guarantor is deemed to be notice given to elf Guarantors, No Waiver by London. Lender shall not be deemed to have waived any rights under ells Guaranty unless such Waiver Is givon In wrlenp and stoned by Lendor. No delay or omission on the pert of Lander In exercising any right shell operate as a waiver of such right or any other right, A walvor by Lender of a provision of title Guaranty shall not preJudlco or consUlule a waiver of Londor'a right other Aso to demand strict compllance with Thal provision or any cello/ provision of this Guaranty, No prior waiver by Lender, nor any course of doaling behveen Lender and Guarantor, shall constitute o waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever tho consent. of Londor Is requlrod under this Ousrenly, the granting of such consent by Lender In any Inslenco shell not constitute continuing consent to subsequent Instances where, such consent is required and In all pesos suctr consent may be granted or withheld In the sole discregon of Lender. Successors and ASSIgne, The terms of thls Guaranty shall be binding upon Guarantor, and upon Guarantors heirs, personal reprosontetives, successors, and esslgns. end shoe be onforoeabie by Lender and Its successors end assigns. 1Yetvo Jury. Lender and Guarantor horeby wawa the flphl to any Jury idol In any action, proceeding, or counterclaim brought by °Ilhar Lendor or Guarantor against tho other. DEFINITIONS, Tho following capitalized words and farms serail hove the foltowine reesnings whin used In thls Guaranty. Unless specifically slated to the canlrary, all references to dollar amounts shall mean amounts In lawful money of the United Stales of America. Words and terms used In the singular shall Inclixle the plural, and the peural shad Include the singular, os the context may require, Words and terms not otherwise defined in this Guaranly shell have the mornings attributed to such terms In the Uniform Commercial Code: Borrower, Tho word 'Borrower' moons Chang Mun Chon ord Son Yf Chen and lncludos air co-signers and co•ntakors signing the Nolo and ell their successors and assigns, OAAP. The Word 'GAAP° means generally accepted accounting principles. Guarantor, Tho word 'Guarantor' means sveryono signing this Guaranty, Inducting without Iirrtiletlon aeon Motel Enterprises, Inc., end In each case, any signer's successors end assigns, Guaranty, The word 'Guaranty" moons this guaranty from Guarantor to Lender. Indebtedness. The word 'Indebtedness" means Borrower's indebtedness to Lendor e,5 more porticulerly described in this Guaranty. Lendor, The word 'Lender means Groyslono Bank, a,DMston of Grayslorta Tower Genic, Its successdrs and assigns. Nola. Tho word 'Nolo" means end includes without limitation aY of Borrowor'a promissory notes andfor credit agreements evidencing Borrowers loan obtgeUons in favor of t.ondor, together with all ronowais of, exlonslons of, modiflcetions of, refinancings n1, concolidations of and substitutions for promissory notos or credit agreonwn(s, Rotated Documents, The words 'Roletod Documents' mean all promissory notes, crodil opreemnn1s, loan egleoments, environmental egroomonts, guaranties, seourtly eereernenls, =neaps, deeds of trust sawrity deeds, collateral mortgagee, and all other Instruments, sproaments and docunienls, whether now or heroaflor °doling, ox000ted In connection with the Indebtedness: CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA. OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WiTHOUT COMPLAINT FILED, CONFESS OR ENTER Loan No 4000049822 COMMERCIAL GUARANTY (Continued) Page 4 JUDGMENT AGAINST GUARANTOR FOR THE .ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEONESS, 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 ($600) ON WENCH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR 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 GUARANTY. GUARANTOR HEREBY,WAIVES ANY RIGHT GUARANTOR IViAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT' EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS, IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY 18 EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THfS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED 'DURATION OF GUARANTY'. NO FORMAL'ACCEPTANCR BY LENDER 19 NECESSARY TO MAKE THIS GUARANTY EFFECTIVE, THIS GUARANTY 13 DATED SEPTEMBER 18, 2010. THIS GUARANTY IS GIVEN 'UNDER 8EAL AND IT 1S INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: CHON MOTEL EN RPRSE', NC Dy■ $ u l C on, res d""on. Tre3suror o hon }1tol BntorprMos, Inc. Soal) %Aso; Owe 1Y.f 11{0 .D11 GO.Y,..111 -4014.1GM.1.e Irn,NM! 01.WoR..rn3 •.A FAVP,AE»,; ni1,'H IAi EXHIBIT "C" RHOADS & SINONLLP February 3, 2014 Kate Deringer Sallie ph (717) 237 -6792 fx (717) 238 -8623 ksal11e@rhoads-sinon.com Reply to Harrisburg Office FILE xo: 12409/26 Re: Susquehanna Bank/Chang Mun & Sun Yi Chon — NOTICE OF DEFAULT VIA FEDEX Sun Yi Chon Chang Mun Chon Chon Motel Enterprises 227 Ewe Road Mechanicsburg, PA 17055 Mr. and Mrs. Chan: We represent Susquehanna Bank, successor by merger to Graystone Bank (the `Bank ") in connection with that certain $3,800,000 loan made by the Bank to Sun Yi and Chang Mun Chon (collectively, the "Borrowers ") and guaranteed by Chon Motel Enterprises (together with the Borrowers, the "Obligors "), such loan being more specifically identified as Loan No, 4000009822 (the "Loan "). You are hereby notified that the Loan is currently more than 90 days past due and is in default for non - payment of the monthly payments for November 2013, December 2013, and January 2014. Accordingly, the Bank hereby declares an Event of Default under the various loan documents related to the Loan (the "Loan Documents ") for failure to make payment when due (the "Event of Default "). This notification represents the Obligors' final opportunity to satisfy the current outstanding indebtedness due and owing under . the Loan Documents. A failure to pay the amounts due and owing to the Bank within ten (10) days from the date of this letter may result in the Bank exercising its remedies as provided in the Loan Documents, Specifically, if a payment of $81,910.68 (covering the November, December and January monthly payments due and owing under the Loan) is not made within 10 days from the date of this letter, we have been authorized to institute appropriate legal action against the Obligors of the Loan, including, but not limited to, confession of judgment against the Obligors, and the foreclosure, liquidation, collection or other enforcement of the Bank's security interests and liens in any or all of the collateral ( "Collateral ") securing the indebtedness and obligations under the Loan Documents, in order to recover all amounts owed to the Bank under the Loan Documents, including legal fees, costs of collection and interest. One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108-1146 • ph: 717.233.5731 29 Dowlin Forge Road • Exton, PA 19341 • ph: 610.423.4200 • fax: 610.423.4201 935765.1 www.rhoads-sinon.com February 3, 2014 Page 2 The Bank's election not to exercise any of its other rights and remedies at the present time, and any financial accommodations the Bank may have made to date, shall not be construed as a waiver of any rights or remedies of the Bank. Nothing contained herein or in any other communication or in any ongoing discussions or negotiations which have or may take place between the Obligors and the Bank shall directly or indirectly: (i) create any obligation upon the Bank to defer any enforcement action or make any further financial accommodations; (ii) constitute a consent or waiver of any past, present or future Event of Default or other violation of any provisions of any Loan Document; (iii) amend, modify or operate as a waiver of any provision of any Loan Document or any right, power, privilege or remedy of the Bank thereunder; or (iv) constitute a course of dealing or other basis for altering any duty or obligation owed by the Obligors to the Bank. Nothing contained in this letter shall confer on any Obligor or any other person or entity any right to other or further notice or cure periods with respect to any Event of Default. The Bank expressly reserves all of its rights, powers, privileges and remedies under the Loan Documents and /or applicable laws, including, without limitation, the Bank's right at any time, as applicable: (i) to apply the Default Rate to the obligations under the Loan Documents since the date of inception of the Events of Default; (ii) to commence any legal or other action to collect any or all of the indebtedness and obligations under the Loan Documents and /or any Collateral or any property pledged by any other person or entity as security for any or all of the indebtedness and obligations under the Loan Documents; (iii) to foreclose or otherwise realize on any or all of the Collateral and /or set -off or apply to the payment of any or all of the indebtedness or obligations under the Loan Documents any or all of the Collateral; and (iv) to take any other enforcement action or otherwise exercise any or all rights and remedies provided by any Loan Document or by applicable laws. Very truly yours, RHOADS & SINON LLP By: l to Deringer Sall' cc: Robert Rahal, Senior Vice President page 1 of t ei w4,,r, II a.. Shipment Receipt Address Information Ship to: Sun Yi Chon and Chang Chon Chon Motel Enterprises 227 Ewe Road Mechanicsburg, PA 17055 US 717 -231 -6692 Ship from: Mun Kate Deringer Sallie, Esquire Rhoads & Sinon LLP One S. Market Square 12th Floor Harrisburg, PA 17108 US 7172335731 Shipment Information: Tracking no,: 797794833866 Ship date: 02/03/2014 Estimated shipping charges: 20.30 Package Information Pricing option: FedEx Standard Rate Service type: Priority Overnight Package type: FedEx Envelope Number of packages: 1 Total weight: 1 LDS Declared Value: 0,00 USD Special Services: Pickup /Drop -off: Use an already scheduled pickup at my location Billing Information: Bill transportation to: rhoads & sinon LLP -796 Your reference: 12409/26 P.O. no.: Invoice no.: Department no.: Thank you for shipping online with FedEx ShipManager at fedex.com, Please Note FedEx will not be responsible for any claim in exceri 01S1 DO par package, whetter the reauh of loss, damage, delay, non-delivery, misdoIvery. or misinformation, unless you declare a higher value, pay an additional charge, dooumenl your actual loss and file a timely claim. Limgallons found In the current FedEx Service Guide apply. 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Consult the applicable Feez.Sorvlco Guide 01 the FedEx Rale Sheets for (Weds on how shipping charges ere calculated. https: / /www.fedex.com/ shipping /html /enlPrintlFrame.html 2/3/2014 EXHIBIT "D" DISCLOSURE FOR CONFESSION OF JUDGMENT Borrower: Declarant: Chang Mun'Chor • Sun YI Chon 227 Ewo Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc, 227 Ewe Road Mechanicsburg, PA 17055 London Graystorto Bonk, o DNlsion of Graystone Tower Dank Capital Region 1'j2 Market Street Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS J . , DAY OF � 20j 1 , A GUARANTY FOR AN UNLIMITED AMOUNT. • A. THE UNDERSIGNED UNDERSTANDS THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER,TO ENTER JUDGMENT AGAINST DECLARANT IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OP JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE GUARANTY, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OP THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S ENTERING JUDGMENT AGAINST DECLARANT BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT 70 ENTER JUDGMENT AGAINST DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON TAKING POSSESSION OF OR OTHERWISE SEIzING DECLARANTS PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF DECLARANTS RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE, 0, AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, THE UNDERSIGNED REPRESENTS THAT INITIALS 1. DECLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE GUARANTY. -.FearikdRUPRESENTATivE OF LENDER SPECIFICALLY CALLED THE CONFESSION OP JUDOMENT PROVISION IN THE GUARANTY TO DECLARANT'S ATTENTION, THIS DISCLOSURE 1S GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SCALED INSTRUMENT ACCORDING TO LAW. DECLARANT: CHON MOTELlEN1ERTRI , INC, By: /11 !! Enterptises, Inc. ant and Treasurer of Chon Motel 000 4LO,nato-4p Vr. {iid >GO. l a>.>on> U .y,, FA rxtaHsas Fe ,N OM rile DISCLOSURE FOR CONFESSION OF JUDGMENT Borrowor: Declarant: Chang Mon Chon Sun Y1 Chon 227 Ewa Road Meohonlcsbur0, PA 17055 Chang Mun Chon 227 Ewo Road MochenIcsburg, PA 17055 Lender: (Roystono Dank, o Division of Oraystono Towor Dank Cepilal Region 112 Markot Stecet Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS I s DAY OF .5epr - . , 20 lU , A PROMISSORY NOTE FOR $3,000,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNRY 70 DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUbOMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER THE NOTE, I AM KNOWINGLY, INTELLIGENTLY, ANO VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. B. I FURTHER UNDERSTAND THAT IN ADDITION 70 GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST MC WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT Er1TMER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT, IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON 711E JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAMVING THESE RIGHTS, AND I EXPRESSLY AGREE ANO CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED OY APPLICABLE STATE AND FEDERAL. LAW, WITHOUT DIVING ME ANY ADVANCE NOTICE. C. AFTER HAVING READ AHD DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES,1 REPRESENT THAT: INITIALS 1. !WAS REPRESENTED BY MY OWN INDEPENDENT LEDAL COUNSEL 1N CONNECTION WITH THE NOTE. )(---t, A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO MY ATTENTION. D. 1 CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000; THAT THE BLANKS IN THIS DISCLOSURE YIERE FILLED IN WHEN 1 INITIALED AND SIGNED 1T: AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT 18 INTENDED THAT THIS DISCLOSURE 16 AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW, (Seat) Chang Mun Chon • utwnnf v.ro ,.', MO oaf hm, H.4'4,r4. ,Kr, KO NRpNAnnmo ./A /VJRR, 1C m'ddtl*R4 DISCLOSURE FOR CONFESSION OF JUDGMENT Borrower: Chang Mun Chon Sun YI Chon 227 Ewe Road Mochenicsburg, PA 17056 ()COMM; Sun Yi Chon 227 Ewe Rod Machanicaburg,PA 17OSS LDndor: Greyatono Dank, a Division of (keystone Tower Sank Capital Renton 112 Market Strobl Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS i5 DAY OF SeA , 20 /U A PROMISSORY NOTE FOR S3,S00,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A, I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER '1.0 ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST ME UNDER TXE NOTE, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JU )0M£NT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION, B. 1 FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT AOVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANOUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED ANO BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY ANO VOLUNTARILY WAIVING THESE RIGHTS, AND 1 EXPRESSLY AGREE AND CONSENT TO LEHOER'S IMMEOIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTEO 8Y APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE. C. AFTER HAVING READ ANO DETERMINED WHICH OF THE FOLLOWING STATEMENT6 ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, I REPRESENT THAT INITIALS 1. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE Note, 2, A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO MY ATTENTION, D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,0DDI THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT AND THAT I RECEIVED A COPY AT TIIE TIME OF SIGNING, THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. 13%.616:1 .9, ,4 <HIrW4.115Wb, Fa 104 MI P.ul;hu1e10 If14J 4 Iq SUSQUEHANNA BANK, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA v CIVIL ACTION - LAW CHANG MUN CHON, SUN YI CHON, : NO. / SPY (PAL L f� and CHON MOTEL ENTERPRISES INC. Defendants PRAECIPE FOR ENTRY OF JUDGMENT To: The Prothonotary Pursuant to the attached Entry of Judgment, please enter judgment in favor of the Plaintiff Susquehanna Bank and against the Defendants Chang Mun Chon, Sun Yi Chon and Chon Motel Enterprises, Inc., and damages are assessed in the amount of $3,654,362.83 together with interest from the date of judgment accruing at the rate of $572.78 per day plus costs of collection. By: Date: March L, 2014 RHOADS & SINON LLP Kathryn D. iv ie .Holly L. Cli e t° One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233 -5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 Phone: (717) 233-5731 Fax: (717) 231-6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., : Defendants F HE. ,PROTtfei'-:Crfi'2,,i...::' 7014 MAR 13 FPI 2: 49 CUMBERLAND COUrl PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON Notice of Defendant's Rights To: Chang Mun Chan 227 Ewe Road Mechanicsburg, PA 17055 Sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 A judgment in the amount of Three Million Six Hundred Fifty-Four Thousand Three Hundred Sixty-Two and 83/Dollars ($3,654,362/83) plus interest from the date of judgment accruing at the rate of Five Hundred Seventy-Two and 78/Dollars ($572.78) per day and costs of collection, has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a Confession of Judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, 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. Court Administrator 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 Lawyer Referral Service 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 SUSQUEHANNA BANK, Plaintiff v. • ▪ IN THE COURT OF COMMON PLEAS OF • ▪ CUMBERLAND COUNTY, • • PENNSYLVANIA CHANG MUN CHON, SUN YI CHON, : and CHON MOTEL ENTERPRISES, INC., : Defendants CIVIL ACTION /- LAW NO. /� Nil (//i,f. RULE 236 NOTICE OF ENTRY OF CONFESSED JUDGMENT To: Chang Mun Chon 227 Ewe Road Mechanicsburg, PA 17055 Sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 You are hereby notified that on March /3 , 2014, judgment by confession was entered against you in the amount of $3,654,362.83 plus interest from the date of judgment accruing at the rate of $572.78 per day and costs of collection. Attached hereto are copies of all documents filed with the Prothonotary in support of the confession of judgment. Date: 3 / /3 /02-o /�jl Prothonotary YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 Lawyer Referral Service 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, : and CHON MOTEL ENTERPRISES, INC., : Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW A NO. / — P14r7 Ci ;); ENTRY OF JUDGMENT AND NOW, this 13 day of grch , 2014, Judgment is hereby entered in favor of the Plaintiff Susquehanna Bank and against the Defendants Chang Mun Chon, Sun Yi Chon and Chon Motel Enterprises, Inc., and damages are assessed in the amount of $3,654,362.83 together with interest from the date of judgment accruing at the rate of $572.78 per day plus costs of collection. Prothonotary Ronny R Anderson Sheriff Jody S Smith Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY . SKRIFF ^`�.. y0/4APR -� ��k7' '~ ,n'.u' /J ryM PEN'^ —"vcOUN/y NS Susquehanna Bank vs. Chang Mun Chon (et at.) Case Number 2D14-1487 SHERIFF'S RETURN OF SERVICE 03/19/2014 02:01 PM - Deputy Jason Kinsler, being duly sworn according to law, served the requested Complaint in Confession of Judgment, Entry of Judgment, Confession of Judgment, Entry of Judgment, Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2958.1 of Judgment and Execution thereon by handing a true copy to a person representing themselves to be Sun Yi Chon, Owner, who accepted as "Adult Person in Charge" for Chon Motel Enterprises at 227 Ewe Road, Lower Allen, Mechanicsburg, PA 17055. /ut 03/19/2014 02:01 PM - Deputy Jason Kinser, being duly sworn according to law, served the requested Complaint in Confession of Judgment, Entry of Judgment, Confession of Judgment, Entry of Judgmen . Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2958.1 of Judgment and Execution thereon by "personally" handing a true copy to a person representing themselves to be: the Defendant, to wit: Chang Mun Chon at 227 Ewe Rd., Lower Allen, Mechanicsburg, PA 17055. -ere4it KINS R, DEPUTY 03/19/2014 02:01 PM - Deputy Jason Kinsler, being duly sworn according to law, served the requested Complaint in Confession of J d rt Entry of Judg ent, Confession of Judgment, Entry of Judgment, Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2858.1 of Judgment and Execution thereon by "personally" handing a true copy to a person representing themselves to be the Defendant, to wit: Sun Yi Chon at 227 Ewe Rd., Lower Allen Twp., Mechanicsburg, PA 17055. JASO�K|NGgR.DEPUTY SHERIFF COST: $71.79 SO ANSWERS, March 31, 2014 RONNYR ANDERSON, SHERIFF Bruce D. Foreman, Esquire Foreman & Caraciolo, P.C. 112 Market Street. 6th Floor Harrisburg, PA 17101 (717) 236 -9391 (Tel.) (717) 236 -6602 (Fax) bruce @ffclaw.net Attorney ID No. 21193 Attorney for Defendant r,U,...., -, emu[, 5I'dJyI��iti dIt�A { SUSQUEHANNA BANK, Plaintiff vs. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, : PENNSYLVANIA : NO. 14 -1487 CIVIL TERM : CIVIL ACTION -LAW PETITION TO STRIKE ALL AND /OR OPEN JUDGMENT Defendant, Chang Mun Chon, Sun Yi Chon, and Chon Motel Enterprises, Inc., by their attorneys, Foreman & Caraciolo, P.C. and Bruce D. Foreman, Esquire, respectfully petition this Honorable Court to strike and/or open the confessed judgment to the above captioned term and number and, in support thereof, state as follows: 1. Plaintiff, Susquehanna Bank, on or about March 13, 2014, confessed judgment in the above captioned term and number by Confession of Judgment filed on behalf of Susquehanna Bank by counsel for Susquehanna Bank who, at the same time, pursuant to an alleged warrant of attorney, signed a confession of judgment on behalf of Defendants. A true and correct copy of the Confession of Judgment and Complaint with attachments thereto is attached hereto as Exhibit "A ". 2. On Plaintiff's pleading, the basis of the judgment is an alleged promissory note from Mr. and Mrs. Chon to Graystone Bank dated September 15, 2010, a division of Graystone Tower Bank, which is attached to Plaintiff's Complaint as Exhibit "A" and a commercial guarantee of the same from Chon Motel Enterpreses, Inc. to Graystone Bank, a division of Graystone Tower Bank. 3. Plaintiff is not a party to the purported promissory note nor guarantee which is the basis for the judgment. 4 4. The Complaint indicates that Plaintiff is a successor by merger to Graystone Bank, but provides no proof of the same. The Plaintiff to the instant Complaint is not a party to the commercial mortgage loan, the promissory note or the commercial guarantee nor the disclosures for the confession of judgment averred or attached to Plaintiff's Complaint. 5. The Defendants, Mr. and Mrs. Chon and the corporate officers Mr. and Mrs. Chon of corporate Defendant, are not native Americans and speak English as a second language and have some difficulty with complicated legal concepts or difficult English documents. 6. The Defendants, Mr. and Mrs. Chon individually and Mr. and .Mrs. Chon as corporate officers of the corporate Defendant, were not represented by counsel nor, to the best of their recollection, did any representative of Plaintiff or Graystone Bank or any other person, go over the Confession of Judgment and default provisions of any of the contracts at the time of their borrowing nor were any of the provisions with regard to Confession of Judgment reviewed with them nor did they understand the same. 7. In Paragraph 14 of Plaintiff's Complaint there appears a confession of judgment from the note attached to Complaint (and Paragraph 15 indicates a nearly identical provision appears in the guarantee) which states, in part, "... 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." 8. Individuals Defendants and corporate Defendant contest the statement that either a representative of the lender specifically called the confession of judgment provision to their attention or that any of them were independently represented by counsel who reviewed the same with them and avers, to the contrary, that no one did so. 9. Defendants believe and therefore aver that they have a meritorious defense to the confessed judgment entered against them. 10. Equity demands that Defendants be allowed to present evidence of their meritorious defense. J 11. This Petition to Strike and/or Open Judgment has been filed within thirty (30) days of entry of the same, and even more quickly from the date of receipt of notice of the same by regular mail to Defendants. 12. Defendants' filing to strike and/or open judgment is timely and pursued with due diligence. 13. None of the Defendants voluntarily, knowingly and willingly entered into a confession of judgment and waived their rights related thereto. WHEREFORE, Defendants, Chang Mun Chon, Sun Yi Chon, and Chon Motel Enterprises, Inc. respectfully requests this Honorable Court to strike the aforesaid judgment; to open the aforesaid judgment; and to stay any proceedings on this judgment until determination of the validity and enforceability of the same. Res ► - full ' ubmitted, Alsai, Dat Bruce D. For � sq. Foreman & Caraciolo, P.C. 112 Market Street. 6th Floor Harrisburg, PA 17101 (717) 236 -9391 (Tel.) (717) 236 -6602 (Fax) bruce @ffclaw.net Attorney ID No. 21193 Attorney for Defendant EXHIBIT "A" Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 Phone: (717) 233 -5731 Fax: (717) 231 -6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., . Defendants 13 R . C tiNb IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. /V- / lig 7 C WII- CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrants of attorney, the originals or true and correct copies of which are attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against the Defendants, including per diem interest and costs from the date of judgment and costs of collection, as follows: Principal sum: $3,465,533.77 Interest: $81,954.80 Late Charges: $27,303.59 Other Charges: $69,570.67 SUB -TOTAL $3,644,362.83 *Interest accrues at per diem rate of $572.78, as indicated through March 7, 2014. ATTORNEYS' FEES . $10.000.00 TOTAL $3,654,362.83 By: Date: March' , 2014 Respectfully submitted, RHOADS & SINON LLP Kat yn D. S Holly L. Cli One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233 -5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 Phone: (717) 233 -5731 Fax: (717) 231 -6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. i1' ED-OFFICE _. IJ` fF, t' f'...1 :.+mot A RY � ,rte �, . 13 PM 2: 50. CUMBERLAND t dU t PENNSYLVANIA • ▪ IN THE COURT OF COMMON PLEAS OF • • CUMBERLAND COUNTY, • ▪ PENNSYLVANIA CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., : Defendants CIVIL ACTION LAW NO. COMPLAINT IN CONFESSION OF JUDGMENT NOW COMES Plaintiff Susquehanna Bank, by its undersigned attorneys, Rhoads & Sinon LLP, and files the within Complaint in Confession of Judgment, stating as follows: 1. Susquehanna Bank (the "Bank ") is a Pennsylvania Banking Institution with a principal place of business located at 1826 Good Hope Road, Enola, Cumberland County, Pennsylvania 17025. 2. The Bank is the successor by merger to Graystone Bank, a Division of Graystone Tower Bank. 3. Defendant Chang Mun Chon ( "Mr. Chon ") is an adult individual with an address of 227 Ewe Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 934558.1 4. Defendant Sun Yi Chon ( "Mrs. Chon") is an adult individual with an address of 227 Ewe Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 5. Defendant Chon Motel Enterprises, Inc. ( "Chon Motel ") is a Pennsylvania business corporation with a registered office address and place of business at 227 Ewe Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 6. Upon information and belief, Mr. and Mrs. Chon are owners and /or officers of Chon Motel. 7.. On September 15, 2010, in consideration of a commercial mortgage loan from the Bank to Mr. and Mrs. Chon in the original, principal amount of $3,800,000.00 ( "Loan "), Mr. and Mrs. Chon executed and delivered to the Bank a Promissory Note ( "Note ") evidencing Mr. and Mrs. Chon's obligation to repay the principal sum of $3,800,000.00, plus interest until paid in full. (A true and correct copy of the Note is attached hereto as Exhibit "A" and incorporated herein by reference). 8. For the above referenced Loan, Mrs. Chon, acting in her capacity as President and Treasurer of Chon Motel, executed and delivered to the Bank a Commercial Guaranty ( "Guaranty ") evidencing, inter alia, the corporate guaranty of Chon Motel to the Bank for Mr. and Mrs. Chon's commercial indebtedness to the Bank in connection with the Loan. (A true and correct copy of the Guaranty is attached hereto as Exhibit `B" and incorporated herein by reference). 9. Pursuant to the terms of the Note, Mr. and Mrs. Chon were obligated to make 59 monthly payments of $27,303.56, beginning on October 15, 2010, with one irregular last payment estimated at $3,255.295.99 to be paid on September 15, 2015. (See Exhibit A). 10. Mr. and Mrs. Chon failed to make the November 2013, December 2013, January 2014 and February 2014 monthly loan payment for the Note. 11. As set forth above, Mr. and Mrs. Chon defaulted under their obligations for the Note in failing to make the required monthly payments. 12. On February 3, 2014, the Bank sent notice of default to Mr. and Mrs. Chon and Guarantor Defendant Chon Motel, declaring an event of default for failure to pay under the Note and notifying Mr. and Mrs. Chon and Chon Motel of such event of default and, although not necessary under the relevant documents, provided Mr. and Mrs. Chon with an opportunity to cure such default by payment on or before February 13, 2014. (A true and correct copy of the Notice of Default is attached hereto as Exhibit "C" and incorporated herein by reference). 13. Following receipt of the Notice of Default, Defendants failed and refused to pay the obligations under the Note which constitutes a default under the Note, as well as the Guaranty. 14. The Note contains the following confession of judgment provision which empowers any attorney of any court of record to appear for and enter judgment against Mr. and Mrs. Chon and in favor of the Bank: 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 ($500.00) 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. (See Exhibit A.) 15. The Guaranty for the Note contains a nearly identical confession of judgment provision which also empowers any attorney of any court of record to appear for and enter judgment against Guarantor Defendant Chon Motel and in favor of the Bank. (See Exhibit B.) 16. Further, Mr. Chon and Mrs. Chon, in both their personal and corporate capacity, each executed a Disclosure for Confession of Judgment ( "Disclosures ") expressly acknowledging, inter alia, that the Note and /or Guaranty contains a confession of judgment provision that would permit the lender to enter judgment in court without advance notice or without offering an opportunity to defend. (True and correct copies of the three (3) separate Disclosures are attached hereto as Exhibit "D" and incorporated herein by reference). 17. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 18. The above referenced Note has not been assigned. 19. The Guaranty referenced herein has not been assigned. 20. Judgment has not been entered on the Note or Guaranty in any jurisdiction. 2L Judgment in favor of the Bank and against Defendants is demanded as authorized by the warrants of attorney contained in the Note and Guaranty. 22. The actual amounts presently due and payable to the Bank under the Loan and /or Note is itemized as follows: Principal sum: $3,465,533.77 Interest: $81,954.80 Late Charges: $27,303.59 Other Charges: $69,570.67 SUB -TOTAL $3,644,362.83 *Interest accrues at per diem rate of $572.78, as indicated through March 7, 2014. ATTORNEYS' FEES $10,000.00 TOTAL $3,654,362.83 WHEREFORE Plaintiff Susquehanna Bank demands judgment in its favor and against Defendants Chon Motel Enterprises, Inc. and Chang Mun Chon and Sun Yi Chon, jointly and severally, in the amount of $3,654,362.83 together with accruing interest at $572.78 per diem, costs of suit, attorneys' fees, and such other charges as authorized by the warrants contained in the Note and Guaranty referenced herein. By: Date: March l2, 2014 Respectfully submitted, RHOADS & SINON LLP Kat yn D. ie Holly L. Cli One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233 -5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes VERIFICATION Robert Rahal, deposes and says, subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities, that-skis Vice President for Susquehanna Bank, that- s`lree makes this verification by its authority and that the facts set forth in the Complaint in Confession of Judgment are true and correct to the best of her knowledge, information and belief. Date Robert Rahal EXHIBIT "A" Borrower: Chang Mun bhon Sun YI Clion 227 Gvro Road Mechanicsburg, PA 17005 PROMISSORY NOTE Lender: (keystone Bank, a Division of (keystone Tower Bank Capital Region 112 Market Stroet Hardsburg, PA 17101 PrInclpal Amount: $3,800,000.00 Date of Nolo: September 15, 2010 PROMISE 70 PAY. Chang (dun Chon end Sun TI Chan ("Borrower") Jointly and severally promise to pay to Graystone Bank, a Division of Oraystono Tower Bonk ( "Londer'J, or ardor, In lawtul money of the Vnitod Stnias of America, the principal amount of Throe Mltlton■Elght Hundred Thousand & 00/100 Dollars ($3,800,000,00), together with Interest en the unpaid principal balance from September 15, 2010, calculated as described In the "INTEREST CALCULATION METHOD' paragraph using an interest rata of 5,950% per annum basal on a year of 360 days, until paid In full, Tho lntorost rale may change under iho•Iarms and conditions of tho "INTEREST AFTER DEFAULT" section. PAYMENT. Borrower wilt pay this loan, in 50 rogutar payments of 527,303,50 each and ono Irregular Iasi paymont ostfmatod el 53,255,205,99. Borrowers first payment le dun October 15, 2010, and all aobsoquent payments are duo on lho some dey of each month after (hat, Borrower's final payment will be duo on September 16, 2015, and will bo for all principal and all accrued (ntarasi not yet paid, Poymonls Includo prindpat and interosh Univac otherwise agreed or roqulred by applicable law, payments us1lt be applied flat to any accrued unpaid lntorost; then to principal; then to any late charges; end Than to any unpaid callaction costs. Borrower will pay Lender at Londafa address shown above or at such other Oleic) es Lender may designato In writing, INTEREST CALCULATION METHOD, Inlorasl on this Note fs oomputed on a 3661360 basis; that Is, by applying the ratio of the Interest rate over a year of 300 days, muttipllod by the outstanding principal balance, multiplied by the actual number of days the principal balance Is outstanding. All interest payable under this Nolo 16 computed using this method, PREPAYMENT PENALTY. Borrowor agrees that all Loan foes and other prepaid finance charges ore earned fully an of Iha deia of the ban and will not bo subject to refund upon early paymont (whether voluntary or os a result of doling), except as otherwise required by law. Upon prepayment 01 this Note, Lendar Is eniRled to the fonowing prcpaymont penally: A propayment foo will ba charged If the Nolo Is prepaid, In wholo or in part, during the fixnd rata period. The fee writ be calculated at two percent (2 %) of Ilia principal amount prepald. A prepayment reo will not be charged on any amount (up to 10% of the current principal amount) prepaid within any loan year from Internally generated funds. The term "loan year" 1$ defined os any period of one year ooramoncing on the closing dale or any anniversary dale thereafter. Except for the foregoing, Borrower may pay all of a portion of the amount owed cantor Ittan ft Is due, Eelfy payments will not, Unless agreed to by lender In writing, reiteve Borrower of Borrower's obtlgatlon to continua to make payments under the payment schedule, Rather, early payments will reduce the principal balance due end may resuil In Borrower's making fewer payments. Borrowor egress not to Bond Lender payments marked "paid In full', "without recourse', or simibu tanguage. If Borrower sends such a payment, Lender may accept It without losing any of Lander's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender, All w lllen comrnun(cellons concerning disputed amounts, including any check or other peyment Instrument that ktdkales that tho payment constitutes "poyment in full" of the amount owed or that Is tendered with olhor conditions or linsitations or as full satisfaction of a disputed amount must be mailed or delivered to: GRAYSTONE TOWER DANK, 1028 Good Hopo Road Encla, PA 17025. LATE CHARGE, If a payment Is 15 days or more talo, Borrovror will be charged 10,000% of rho regularly scheduled payment or 5250,00, whichever Is greater. INTEREST ASTER DEFAULT. Upon default, Including failure to pay upon final moturlly, the lntorost rote on lisle Note shall be increased by 2,000 percenlage points, If Judgment is entered In connndion with this Note, Interest will continuo to ocoruo after the dato of Judgment el the rata In effect at (ha limo Judgment Is ontorad, However, In no oveni will the Inlorasl rate exceed 'Ito moxlrnum Interest tale 6mhatlons under eppticable taw, DEFAULT, Each of the following shall constitute an event of default (`Event of Dafeutt'} under thls Note; Payment OotaulL Borrower fells to make any payment when due under this Note, Olhor Oafaufts, Borrower foils to comply with or Ie perform any outer term, obligation, covenant or condllloo contained In thls Nolo or In any of No related documents Of to comply with or to perform any term, ob00alion, covonent or condition contained In any other agreement between Lender. and Borrower. Falco Sletomonts, Any warranty, represonlal1on or alatomont made or ivrnished to Lender by Borrower or on Borrawor's behalf vrtdor this Note or tho rotated documents Is (also or misleading In any melodist rospocl, either now or al the tune made or furnished or becomes false or misleading el any Ilmo theren(ter, Death or insolvency, The death of Borrower or the dlseolution or termination of Borrower's oxiatence es a going buelnass, uto insolvency of Borrower, the oppoinlmenl of a receiver (or any port of Bomowor's property, any assignment for tho benefit of creditors, any type of creditor workout, or the commencemonl of any proceeding under any bankruptcy or Insolvency laws by or ega1511 Borrower, Crudites( or For(eltaro Proceedings. Commoneernenl of foreclosure or forfeiture proceedings, whether by Judicial proceeding. self -help, ropossession or eny other method, by eny creditor of Borrower or by any-govornmenlai agency against any collateral securing tho loan. This Includes a gornlshmenl of any of Borrower's accounts, including deposit accounts, with Lender, However, lilts Evonl of Default shell not apply If Moro Is a good faith dlsputo by BOlrawel as to the validity or reasonableness of tho claim which Is Iho basis of Ono creditor or forfeiture proceeding cnd If Borrower gtvos Landon written notice of tho crodilor or torfolluro proceeding end deposits with Lendor monies or a surely bond for tho creditor or forfeiture proceeding, in an amount determined by Lender, In Its solo discretion, es being an adequate reserve or bond for the dispulo. Events'Aflocling Ovaranior, Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or eny Guarantor dies or bacornos Incompetent, or rovakes or disputes (Ito validity of, or liability under, any guaranty of Iho Indebtedness evidenced by lhla Note. Adverse Change. A material adverse change occurs In Borrower's financial condition, or Lender bellsves the prospect of payment or performance of this Nava Is Impaired. Coro Provisions, II any default, other than n default In payment is curable and if Borrower has not been given a nonce of a breach of the soma provision of this Note within the preceding lwolvo (12) months, It may be cured If Borrowor, .after Lender sends written notice to Borrowor demanding cure of such default: (1) cures the default within fifteen (16) days; or (2) if the curs requires more than fdloer (16) days. Immediately inluates steps which Lender deems In Lender's sole discretion to be sufficient to cure tho default and Iboroeltor continuos and complolas all reasanibia and nocessery steps suffclont to produce compliance as soon as reasonably practical, LENDER'S RIGHTS, Upon default, Lender may, altar giving such notices as required by apppcoblo law, Odom the °nitro unpaid principal balance under Oils Note and all accrued unpaid Inlorasl Immediately due, and then Borrower will pay Thal amount. Loan No: 4000009822 PROMISSORY NOTE (Continued) Paso 2 ATTORNEYS' FEES; EXPENSES, Lender may hire or pay somoone. else to hotp collect this Note If Borrower does not pay, Borrowor will pay Lender that amount This includes, subject to eny Emits under appkoablo law, Loader's reasonablo altarneys' fees and Lendor's regal expenses, whether or not there is a lawsuit, Including reasonable attornoys' foes, expenses for ban<ruploy proceedings (including efforts to modify or vacate any automatic stay or Injunction), and appeals. If not prohibhod by appticabia low, Borrower aiso will pay any court costs, in addition to all other sums provided by tow. JURY WAIVER. Londor and Borrower hereby watvo tho right to eny jury mat In any scuba, proceeding, or countoratalm brought by either Lender or Borrower against the other. GOVERNING LAW. This Nato will bo 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 conflIcta of taw provisions. This Note has been accopted by Londor In tho Commonwealth of Pennsylvania, CHOICE OF VENUE, if there is a lawsuit, Borrower agrees upon Lender's raquest to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Penns/Neale. RIGHT OF SETOFF, To the oxLent pormiited by applicable law, Lender roservas n right at setoff fn alt Dorrower's accounts with Lender (whether checking, savings, or some othor account), Thls Irteluded oil accounts Borrower holds Jointly with someone else and alt accounts Borrower may open in the future, However, this does no! Include any IRA or Koogh accounts, or any trust accounts for which selolt would bo prohibited by law. Borrower authorizes Lender, to the extent pormltled by applicable law, to charge or setoff ell sums owing on the Indebtedness against any and all such accovnls. SECURITY. All coliateral (es herein defined) is security tor this Nolo and any renewals, extensions end modiilcationa thereof, and rho payment, performance and discharge of all other present or future indebtedness, obiigallons and undertakings (wholhor indMduel, joint, several, direct. contingent or otherwise) or the Borrower to or for the benefit of Lender, whether arising directly to Lander under this Note or under any . other agreement, promissory note or undertakings now existing or hereinafter entered into by the Borower to the Lender. The terra "Collateral" indudoa ell tangible and intangible property (I) described In any mortgage, pledge, assignment or other security document sepnrntely executod In favor of Lender, end (h) In which n security Interest has been granted to Lender pursuant to this Note. SUCCESSOR INTERESTS. Tho forms of tints Noto shall bo binding upon Borrower, end upon Borrower's heirs, personal representatives, successors end assigns, and shalt Inure, to the bonere of Londer and Its suceassora and assigns, GENERAL PROVISIONS. if any part of This Nate cannot be enforced, this fact will not affect the rest of the Note, Londor may delay or forgo enforcing any of its rights or femodies under this Note without tosing them. Each Borrower endoretands and agrees that, with or without notice to Borrower, Lender may vfih respect to any other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend sddittonai credit; (b) oiler, compromise, renew, extend, acceierolo, or otherwise change one or more times the time for payment or other torrns of any lndobtodnoss, including inoroases and decreases of the rate of Interest on tho indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide not to perfect, and raiaaso any security, with or without the substitution of now collateral; (d) apply such security end direct (he order or rnannor of sato thereof, including without Ilmila!lon, ony nen- judicial solo parmliied by lho terms of the conlrolfcng security ngrooments, as Lender In Its d(scrallon may detormine; (a) release, substitute, agree not to sua, or deal with ony one or more of Borrower's mottos, endorsers, or other guarantors on any terms or In any manner Louder may choose; end (I) determino how, when and what application of Portents end credits shag bo made on any other Indebtedness owing by such other Borrower, Borrower and any other parson who signs, guarantees or endorses this Note, to tho extent a1towed by law, Waive presentment, demand for payment, and nclloe of dishonor. Upon any change to the terms of this Nolo, and'unisss otherwise expressly slated In waiting, no party who signs this Note, whether as maker, guarantor, occomniodadon maker or endorser, shell be relaased from liability, All such parties agree that Lender may renew or extend (repeatedly and far any length of time) this loan or release any party or guarantor or collateral; or Impair, fall to realize upon or perfect Lender's security interest In the collateral; and take any other action deemed neeessory by Lender without the consent of Or notice to anyone, All such parties also agree that Lender may modify this loan without tha consent of or notice to enyono.other then Ma party with whom the modifioallon Is made, Tho obligations uncial' this Nolo are Joint and several. if any portion of thts Note Is for any reason detstminod to be unenforceable, it will riot 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 14071: AND WiTH 011 WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUEO INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOG IF'THER WITH COSTS OF SUIT. AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10 %) OF THE UNPAID PRINNCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, Bur iN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS (.5560) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS N0T0 VERIFIED 13? AFFIDAVIT SHALL DE 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 114 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 JUDOMENrf 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 IRiS NOTE, EACH BORROWER READ AND UNDERST000 ALL THE PROVISIONS OF 74(18 NOTE, EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT 01 A COMPLETED COPY OF THIS PROMISSORY NOTE, THIS NOTE IS GIVEN UNDER SEAL AND iT IS (NTENDED THAT THiS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW, • Loan No: 4000009822 PROMISSORY NOTE (Continued) Page 3 LENDER: ORAYSTON E3 /kNK, A DIVISION OF GR $TOR' it74i'ER na t nMq. YV. { tlo)WI •..? ,»t. »I NYtW Aw,} +I; •.1CUUUtQ)f10 TRAY.{ Ott EXHIB T COMMERCIAL GUARANTY Sofrowor; Chang Mun Chap sun Yi Chon 227 Ewe Road Mechenfcsbdrg, PA 17055 Guarantor; Chon Motel Enterprises, Inc, 227 Ewa Road Mochan(csburg, PA 17053 Lander: Oroystone Bank, a Division of Greystone Tower Bank Copal Region 112 Market Shoot Harrisburg, PA 17101 CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE, Fcr good and valuable consideration, Guarantor obsoluiefy and unconditionally guarantees full and punctual payment and satisfaction of tho Indebtedness of Borrower, or any on or more of thorn, to Lender, and the performance and discharge of all Borrower's obligations under the Note and tha Related Documents, This Is a guaranty of pnyment and pariormanco and not of collodion, so lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to pay the Indebtedness or egaInst any collateral sscurIng the Indebtodness, this Gaaraniy or any other guaranty of the Indebtedness. Guarantor will make any payments to Lender or its order, on demand, in legal tender of the United Slates of America, In seme•day funds, without set•oif or deduction or counterclaim, and will otherwise perform Borrower's obligations under the Nola end • Rotated Documents. Uader this Guaranty. Guarantor's liability is unlimited end Guarantors abrigaUons aro conlinuinr). INDEBTEDNESS. The word "Indebtedness' es used In this Guaranty moans eft of tho principal amount outstanding from time to time and at any one or more times, accrued unpaid interest theroon and oil collodion costs and lapel expenses rotated thereto permitted by law, reasonabto attorneys' fees, (rising from any and all debts, Ileblfitios and obligations of every nature or form, now existing ar horeetier arising or acquired, that Borrower indlvtdustly or collectively or Intorchangeably with others, ewes or will awe Lender. "indebtedness' Includes, without iimitaton, loans, advances, debts, overdraft indebtedness, credit card Indoblodneas, lease obligations, liabilities and obligations under any Interest rote protection agreements or foreign currency exchange agreements or commodity prtco protection agreements, other obtigstions, and Ilabgitles of Borrower, or any one or more of them, and any present or future judgments against Borrower, Or any ono or more of them, future advances, loans or transactions that mow, extend, modify, refinance, consolidate or substitute these debts, liabilities and obligations whether; voluntarily or Involuntarily incurred; due-or to become duo by their terms or acceleration; absolute or conllnoenl; liquidated or untiquidated; detamined or undetermtnwd; direct or Indirect; primary or secondary in naturo or arising from a guaranty or surety secured or unsecured; Joint or savant or Joint and several; evidenced by a negotiable or non•negoUable Instrument or writing; ortglnatad by Lendor or another or Othors; barred or unonforceablo against Borrower for any reason whatsoever; for any Iransaclions that may be, voidable for any reason (such es infancy, lnsontty, ultra vitas or othervriso); and ortglnated then reduced or extinguished and then attarwards increased or reinstated. If Lender presently holds one or morn guaranties, or hereafter rocolves additional guarantlas from Guorantoe. Lender's rights under all guaranties shall be cumulative. This Guaranty shalt not (unless apeclficaty provtded below to (ho contrary) affect or Invalidate eny such other guaranties.' Guarantor's liability will be Guarantor's aggregate !lability under the terms of this Guaranty end any such other unterminaled guaranties. CONTINUING GUARANTY, THIS IS A 'CONTINUING GUARANTY' UNDER WHICH GUARANTOR AGREES TO GUARANTEE THE FULL AND PUNCTUAL PAYMENT, PERFORMANCE AND SATISFACTION OF THE INDEBTEDNESS OF BORROWER, OR ANY ONE OR MORE OF THEM, TO LENDER, NOW EXISTING OR HEREAFTER ARISING OR ACQUIRED, ON AN OPEN AND CONTINUING BASIS, ACCORDINGLY, ANY PAYMENTS MADE ON THE INDEBTEDNESS WILL NOT DISCHARGE OR DIMINISH GUARANTOR'S OBLIGATIONS AND LIABILITY UNDER THIS GUARANTY FOR ANY REMAINING AND SUCCEEDING INDEBTEDNESS EVEN WHEN ALL OR PART OF THE OUTSTANDING INDEBTEDNESS MAY BE A ZERO BALANCE FROM TIME TO TiME. DURATION OF GUARANTY. This Guaranty will take offocl when received by Lender without the nocasslty of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue In full force until ell (ho indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fusty end ilnalty paid and satisfied and ell of Guarantors other obligations under this Guaranty shall have boon performed In full, If Guarantor elects to rovoko this Guaranty, Guarantor may only do so In writing, Guarantor's written notice of revocation must bo mailed to Lender, by certified mall, at Lender's eddrass listed above or such other piece as Londer may designato in writing. Written revacatl n of (his Guaranty will apply only to new indobtedness created a(lor actual receipt by Lander or Guarantor's written revocation. For this purpaso and without limitation, the (arm new Indebtedness" does not Include the indebtedness which et the limo of notice of revocation Is contingent, unllquldatad, undotorndned or not duo and which later becomes absolute, liquidated, determined or due. For this purpose and without limitation, 'new Indebtedness' does not Include ell or part of the Indebtedness that Is; Incurred by Borrower prior to revocation; Incurred under a commitment that became binding beforo rovocorlon; any renewals, extensions, substitutions. and modifications of the (ndebtednoss. This Guaranty shalt bind Guarantors estate as to lho Indebtedness created both before and after Guarantor's death or Incapacity, regardless of Lender's actual notice of Guarantor's death, SuhJoot to Liao foregoing, Guarantor's axocutor or edministrator or other legal roprosontetive may terminoto this Guaranty in rho sane manner In which Guarantor might have torminated It and with the soma effect. Release of eny other guarantor or torminatlon of any other guaranty of fhb Indebtedness shall not affect the Ilablgly of Guarantor under this Guaranty. A revocation Loader receives from any one or mots Guarantors shalt not (Hoot the liability of any remain`ng Guarantors under this Guaranty. It Is anticipated That fiactvatlans may occur In the aggregate amount of the Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and sgroos that reductions In the amount of tho indebtedness, even to zero dollars (50.00), shall not constitute a termination of this Guaranty, This Guaranty is binding upon Guarantor and Guarantor's heirs, successors and assigns no long as any of the Indebtedness remains unpaid and even though the indebtedness may from time to time be zero dollars (Sa,OD). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor auihdrizes Lender, either before or after any revocation horoof, without notice, or demand and without lessening Guarantor's liability under this Guaranty, from tiro to lima; (A) prior to revocation as sot forth above, to make one or moro additional secured or unsecured loans to Borrower, to Iseso equipment or other goods to Borrower, or otherwise to oxiend additional credit to Borrowor, (B) to altar, comprom(se, renew, extend, accelerate, or otherwise change one or more tiro/ the limo for payment or other terns of the Indebtedness or any part of tha indebtedness, including increases and decreases of Ilia rate of interest on the indebtedness; extensions may be repeated end may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforco, wslve, subordlnato, fall or dacide not to period, and release any such sacurily, with or without the subetllutlon of new collateral; (0) to release, substitute, agree not to sue, or doal with any one or more of Dorro•,vors sureties, endorsers, or otttor guarantors on any torus or In any manner Lender may choose; (E) to determine how, when and what eppkcatlon of payments and credits shall bo mado on tho Indebtedness; (r) to apply such security and dirod the order or manner or safe !hereof, Including without limitation, eny non;udiclat solo permitted by tho !arms of the controlling security egreement or deed of trust, as Lendor In its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; end (H) to assign or !meter tills Guaranty in whole or to part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES, Guarantor represents and wormnts to Lender that (A) no reprosoptatione or agreements of any kind havo been made to Guarantor which would limit of qualify in any way the terms of this Guaranty; (9) this Guaranty is execulad nt Borrower's request and not al the request of Lender; (C) Guarantor has (Of power, right end authority to other Into this Guaranty; (0) the provisions of This Gaaraniy do not conflict with or result to o default under eny agreement or other Instrument binding upon Guarantor COMMERCIAL GUARANTY (Continued }, r', Patio 2 and do not. result in a vlololion of any lew, regulation, court deuea or order applcable to Guarantdr.•(E). Guarantor has not and will not, without the prior written consent of Leotfor, soli, loesa, osslgn, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor's assets, or eny Interpol thoreln; (F) upon Landafs request, Guarontor will provldo lo.Lendor financial and credit information In form acceptable to Lender, and all such (Menial Information which currently has been, and all futdre financial Information which will be provided to Lender Is and will bo bun and correct In all malarial rospects and (ably praseht Guarantor's financial candltlon as of the dates Ma financial Information is pro aided; (6) no matador adverse change has occurred in Guarantor's financial bondition since the data of the most mcont financial statements protidad to Londe; and no ovont has occurred which may matoda;ty edyersely affect Guarantor's financial condition; (H) no litigation, claim, fnvesllgailon, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (t) Lender has made no represontallon to Guarantor ss to the creditworthiness of Borrower, and (J) Guarantor has established adequate moans of obtaining from Borrows; on e continuing basis information rogarding Borrower's financial condition. Guarantor agrees to keep adequately Informed from such means of any facts, avonts, or circumstances which might in any way affect Guarantors rlsks under this Guaranty, and Guarantor further agrees that Lender shall have no obtigallen to disclose. to Guarantor any Information or documents acquired by Lander In the course of Its relationship with Borrower. GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following: • Tax Returns, As soon as available, but In no event later than slaty (60) days after the applicable filing date for the tax reporting period ended, Fedoras end other govornmontat tax returns, prepared by a certified public; exountant sallsfacfory to Lendor. All finendal reports roqutrod to be provided under this Guaranty shell be prepared In accordance with GAAP, /applied on a consistent basis, and certified by Guarantor as bang true and correct, GUARANTOR'S WAIVERS. Except es prohibited by applicable law, Guarantor wafwes any right to require Londe( (A) to contlnue lending money or to exlond other credit to Borrowar; (0) to make any presentment, ptolast, demand, or notice of any kind, including natico 01 any nonpayment of the Indebtedness at of eny nonpayment related to any collatnmi, or notice of any acilon or nonaction on tho part of Uorrowor, Lender, ony aurety, endorser, or other guarantor In connection with the Indebtedness or to connection with rho croalion of new or additional Loans or obfigetlons; (C) to resort for payment or to proceed directly or at once against any person, Including Dorrowet or any other guarantor; (0) to proceed directly against or exhaust any collateral held by Lander from Borrower, any other guarantor, or any other person; (E) to give notice of the terms, Lima, and place of any public or private salo of personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Cornmorclal Code; (F) to pursue any other rOmody within Lenders powor, or (0) to commit any act or omission of any kind, or at any time, with respect to ony matter whatsoever, • Guarantor also waives any and all rights or defenses based on suretyship or Impolrmant of collateral Including, but not limited to, any rights or defenses arlsIng by reason of (A) any one action' or `anti- defidancy" law or any other law which may prevent Lander from bringing arty Dolton, Including a claim for dofidency, against Guarantor, before or after Lender's commencement or completion of ony foreclosure action, oliher judicially or by oxarclse of a power of sale; (a) any election of remedies by Lender which destroys or otherwise adversely affects Guarantota eubrogauon rights or Guarantors rights to proceed against Dorrower for relmbursemant, Including without limitation, any loss of rights Guarantor may sulfa; by reason of eny law Hating, qualifying, or diechergtng the indebtedness; (0) any disability or other defonso of Borrower, of any other guarantor, or of any olhar person, cr by reason of the cessation of Borrower's liability from any cause whatsoever, other than payment in full In legal tondor, of the Indebtedness; (0) any right to claim discharge of the indebtedness on the hash of unjustified impairment of any colteterel for the lndablednoss; ( ») any slalulo of limitations, If at any time any notion or suit brought by Lender against Guarantor Is commenced, there Is outstanding Indebtedness which Is not barred by any appiicabta statute of limitations; or (F) any defenses given to guarantors at lair? or fn Wily other than actual payment and performance of the Indebtedness. If payment Is mode by Borrower, whether vcunlarly or atherw>ise, or by any third party, on the Indebtedness arid thereafter Lender Is forced to remit the amount of that payment to Borrower's trusloo in bankruptcy or to any similar person under any federal or stale bankruptcy law or law for lha (olio! of debtors, the Indebtedness shag be considered unpaid for the purpose of rho enforcement of This Guaranty. .Guarantor further wartvos and agro0s not to assert or dorm et any time any deductions to the+ amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, rocoupmont or similar right, whether ouch claim, demand or right may be assortod by the Borrower, the Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT 70 WAIVERS. Guarantor warrants and agrees that oath of the swims set forth above Is made with Guarantor's full lrnowledgo of Rs significance and consequences end (hat, under the circumstances, the wolves are reasonable and not contrary to public policy or taw. If any such wotvor Is determined to bo contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy, RIGHT OF SETOFF. To tho extont pormlttod by appicobto law, Lender reserves a right of setoff In all Gserantar'o accounts wilti Lender (wholher checking, savings, or some olhar account). This includes ell accounts Guarantor holds jointly with someano otso and all accounts Guarantor may open In the future. Howovor, this does not Jncludo any SA or Keogh (recounts, or any trust accounts for which setoff would be prohibited by law. Guarontor aulharizos Lender, to the extant permitted by applicable law, to hold those funds If !hero Is a dofoult, and Lender may appty the funds In these accounts to pay whet Guarantor owes under the terms of this Guaranty, SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR, Guarantor agrees that the Fndobtodnass, whether now exIstiog or hereafter created, shell bo superior to any claim that Guarantor may now have or hereafter ocqulrc egetnsl Darro,var, whether or riot Borrower becomes Insolvent. Guarantor hereby expressly subordinates any claim Guarantor may havo agalnsl Borrower, upon any account whalsoevor, to any claim that Lendor may now or horaafter haw; agalnsl Borrower. in Ilia event of Insolvency and consequent liquidation of tho assets of Borrower, Through bankruptcy, by an assignment for tho bonefit of creditors, by voluntary liqufdadon, or otherwise, Bra easels of Borrower applicable to the poymon( of the Balms of both Lender and Guarantor shat( be paid to Lender and shall be first applied by Lendor to the Indebtedness. Guarantor does horoby assign to Lender all claims .which ft may have or acquire against Borrower or against any assignee or truster In bankruptcy of Borrower; provided however, that such asslgnrnonl shall bo effective only for She purposo of assuring to Lendor full payment In legal tender of fife Indebtedness. If Lender so roquosls, any notos or credit ogreaments now or horaahor avldonc(ng any debts or obligations of Borrower to Guarantor shall be. marked w lth a legend that the same are subject to this Guaranty and shall be delivered to Lander, Guarantor egroas, and Lender Is hereby authorized, in the name of Guarantor, from lima to time to file Snandng statements and continuation statements and to axccule documents and to take such other actions as Londer deems na-cassary or appropriate to perfect, preserve and enforce Its dghls under this Guaranty, MISCELLANEOUS PROVISIONS. The following rntscelleneovs provisions are a part of thls Guaranty: Amendments, This Guaranty, together with any Related Documents, cons(Tlulos the entlro understanding and agreement of tho parttos 30 to the matters set forth In Ihls Guaranly. No alteration of or ornandmont to thle.Guaranty shall bo affective uniess given In writing and signed by the party or pantos sought to be charged or bound by the allorolfon or arnondmant. Attorneys` Foos; Expenses. Guarantor agrees to pay upon demand all of Lenders costs and oxpenses, Including Loader's roasonabis attorneys' fees and Lender's legal expenses, Incurred In connaction with the onforcamerl of this Guaranty. Lander may hire or pay v COMMERCIAL GUARANTY Loan NO: 4000009822 (Continued) Pape 3 someone visa to help enforce thls Guaranty, rod Guarantor shod pay tho costs an expenses or such enforcement. Costs and oxponsea include 1, ondor's reasonable allornoyo' fees end legal expenses whether or not !hare Is a lawsuit, including reasonable attorneys' fear and fagot expenses for bankruptcy proceodfngs (including efforts to modify or vacate any automatic slay or injunction), ()peon's, and any anticIpated post- Judgment collection services. Guarantor also shall pay oil court costs and such additional fees as may be directed by [ha court. Caption Headings. Caption headings In this Guaranty boo for convenience purposes only and are not to bo used to Interpret or define the provisions of this Guaranty. Governing Law, This Guaranty will bo gevamad by fedora! !sw applicable to Lender and to the extant not preempted by federal few, the laws of tho Commonwealth of Pennsylvania without regard tone ecnflicts of law provisions. Choice of Venue, If there Is a lawsuit, Guarantor agrees upon Lender's roquost lo submit to lho Jurisdiction of the courts of Dauphin County, Commonwoalth of Pennsylvania. Integration. Guarantor further agrees that Guarantor has read and fully understands tho forms of thls Guaranty; Guarantor has had the opportunity to ha advised by Guarantor's nllornoy vdlh respect to this Guaranty; tho Guaranty fully monocle Guarantors Intentions and parcel ovldence is not required to Inlarprot tha terms of this Guaranty, Guarantor hereby Indemnlhos.and ha!ds Londor harness from nil losses. claims, damages, and costs (including Lender's attorneys' fees) suffered or lncurrad by Lender es a result of any breach by Guarantor of Iho warrnnlies, represontatlons and agreemonls of this paragraph, Interpretation, In all cases where there Is morn than one Borrower or Ouaronlor, Uteri ell words used to Ihls Guaranty In the singular shall be deemed to have been used to the plural where the conloxt and constnrcllon so require; and where More is more than one Bonowar named in this Guaranty or whon this Guaranty is executed by moat than one Guarantor, the words '0orrowar' and 'Guarantor' respectIvoly shall mean all and any ono or more of Mom. Tha words `Guarantor," 'Borrower,' and 'Gender' Indudo tho heirs, successors, assigns, and Iransfereas of each of them. If a court finds that any provision of this Guaranty Is not valid or should not be enforced, that fact by Itself will not mean That Ma rest of Ihls Guaranty will not be valid or onlorccd, Therelora, a coon will enforce the rest of the provisions of this Guaranty even If a provision of this Guaranty may be found to be invalid or unenforceable, If any ona or more of Borrower or Guarantor are corporations, partnerships, timlled liability companies, or stroller enllllea, It Is not necessary for Loader to Inquire Into the powers of Borrower or Guarantor or of the o(ficors, directors, partnors, managers, or other agents acting or purporting to eel on their behalf, and any indebtedness made or mated in reliance upon the professed exorcise of such powers shall bo guaranteed under thls Guaranty. Notices. Unless otherwise provided by applicable law, any notice requ'rod to bo given undor thls Guaranty shall be given In writing, end, axcepl for revocation notices by Guarantor, shot! be effective whon actually dottverad, when actually received by lele(ecsimtle (unless olhorwlse required by law), when deposited with a nationally recognized overnight courier, or, If mailed, when deposited In the United States mail, as first close, certified or reetslared mall postage prepaid, directed to the aUdressos shown near the beginning of this Guaranty. All revocation notices by Guarantor shall bo In writing and shall ba effective upon delivery to Lander as provided In the eocllon of this Guaranty ontitlod 'DURATION OF GUARANTY." Any party may change Ile address for notices 'odor this Guaranty by giving formal Wrftton noltoa to rho other parties, spodfying that the purpose of the notice Is to change the party's address, For nOUCO purposes, Guarantor agrees to keep Lender informed at all limes of Guarantor's current eddross. Unless othondso provided by applicable law, If (hero Is more Ilion ono Ruoranlor, any notice gluon by Lender to any Guarantor Is doomed to be notice given to all Guarantors. No Walser by Lender. Lender shag not be deemed to have waived any rights under this Guaranty unless such Waiver Is given In wrfUng and signed by Lendor. No delay or omission on the parl of Lender In exercising any right shall operate as a waiver of such right or any other right, A walvor by Leader of a provision of thla Gvarenty shall not prejudice or constitute a waiver of Londor's right alherwloo to demand strict compliance vrl(It that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any courso of dealing between Lender and Guarantor, shall constitute a waiver of any of Lenders rights or of any of Guarantors obligations as to any future transactions. Whenever the consent of Londor le required under this Gvoronly, tho granting of such consent by Lendor In any Inslaneo shalt not conslituto continuing consent to subsequent Instances where such consent Is requbed and In all cases ouch consent -may be granted or withheld In the sole discretion of Lender, Successors and Assigns, The !arms of thls Guaranty shall be binding upon Guarantor, and upon Guarantors heirs, personal reprosantedves, successors, and assigns, end &Ii&l be On(orfeable by Lender and Ito successors and assigns, \'rolvo Jury, Lendor and Guarantor hereby waive Iho right to any Jury trial In any motion, proceeding, or counterciaim brought by either Lender or Guarantor against Iho other. 0EFINITIONS, The folicwing capitalized words and farms shall have the following meanings whon used In thls Guaranty. Unless specifically 'slated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United Staloo of America. Words end forms usod in the singular shall Include the plural, and the plural shall Indudo the singular; os the context may require, Words and terms 001 Otherwise donned in this Guaronly shall have the meanings attributed lo such terms in the Uniform Commercial Code: Borrower, 'The word 'Borrower' moans Chang (dun Chon and Snn Yi Chon and Inctudos eft co•slgners and co•ntakors signing Iho Nolo and all their successors and assigns, 0AAP. The 'word "GAM" means generally accepted accounting principles. Guarantor, Tho word 'Guarantor` means everyone signing this Guaranty, Including without limitation Chon Motel Enterprises, Inc., and In each case, any signers successors and assigns. Guaranty. The word 'Guaranty" means Urls guaranty from Gvarantor to Lender. Indebtedness. The word 'Indebtedness' means Borrowor's Indobtodness to Londe( as more particularly described In thls Guaranty. Lendor, The word 'Lander' means Grayslono Bank, a Dlvfsbn of Groyelone Tower Bank, Its suocessdrs and assigns. Nola, Tha word 'Nolo" means and includoe without iimitation of of Borrowor's promissory notes and(or crodtt agreemonls ovldendng Borrower's loan obtgellons in favor of i.ender, together with oil renewals of, extanslons of, modifications of, rotinanclnes of, consolidalwns of and substitutions for promissory not or credit agreomonts. Related Documents. Tha words 'Related Dorarmanls° mean on promissory note's, crodil Doreemnnts. loan ogroomen(s, environmental agroomonts, guaranties, secudly agreements, mortgage's, deeds of trust security deeds, collateral mortgages, and eU other Instruments, sgroements and docunionls, wholhernow or heroatlor oxfstIng, oxoculod in connection with tho indebtedness; CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER Loan No: 4000009822 COMMERCIAL GUARANTY (Continued) JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES ANO 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 (3500) ON WHICH JUDGMENT OR 'JUDGMENTS ONE OR MORE EY,ECUTIONS MAY ISSUE IMMEDIATELY; AND FOR S0 DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIIJE TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY, GUARANTOR HEREBY,WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING N CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT ANO STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL, EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY 13 EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF IRIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED 'DURATION OF GUARANTY'. NG FORMAL'ACCEPTANCE UY LENDER 15 NECESSARY TO MAKE THIS GUARANTY EFFECTIVE TN IS GUARANTY 15 DATED SEPTEMBER 15, 2010, THIS GUARANTY IS GIVEN UNDER SEAL AND IT 13 INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUh1ENTACCORDING TO LAW. GUARANTOR: CHON MOTEL ENY RPRI Dye nlorprltos, Inc. Treasuror of Ch EXHIBIT "C" RHOADS & SIN0N LLP February 3, 2014 Kate Deringer Sallie ph (717) 237 -6792 fx (717) 238 -8623 ksallie @rhoads- sinon.corn Reply to Harrisburg Office FILE NO: 12409/26 Re: Susquehanna Bank/Chang Mun & Sun Yi Chon — NOTICE OF DEFAULT VIA FEDEX Sun Yi Chon Chang Mun Chon Chon Motel Enterprises 227 Ewe Road Mechanicsburg, PA 17055 Mr. and Mrs. Chon: We represent Susquehanna Bank, successor by merger to Graystone Bank (the "Bank ") in connection with that certain $3,800,000 loan made by the Bank to Sun Yi and Chang Mun Chon (collectively, the "Borrowers ") and guaranteed by Chon Motel Enterprises (together with the Borrowers, the "Obligors "), such loan being more specifically identified as Loan No. 4000009822 (the "Loan "). You are hereby notified that the Loan is currently more than 90 days past due and is in default for non - payment of the monthly payments for November 2013, December 2013, and January 2014. Accordingly, the Bank hereby declares an Event of Default under the various loan documents related to the Loan (the "Loan Documents ") for failure to make payment when due (the "Event of Default "). This notification represents the Obligors' final opportunity to satisfy the current outstanding indebtedness due and owing under the Loan Documents. A failure tb pay the amounts due and owing to the Bank within ten (10) days from the date of this letter may result in the Bank exercising its remedies as provided in the Loan Documents, Specifically, if a payment of $81,910.68 (covering the November, December and January monthly payments due and owing under the Loan) is not made within 10 days from the date of this letter, we have been authorized to institute appropriate legal action against the Obligors of the Loan, including, but not limited to, confession of judgment against the Obligors, and the foreclosure, liquidation, collection or other enforcement of the Bank's security interests and liens in any or all of the collateral ( "Collateral ") securing the indebtedness and obligations under the Loan Documents, in order to recover all amounts owed to the Bank under the Loan Documents, including legal fees, costs of collection and interest. One South Market Square, 12th Floor • P.O. Box 1146 • Harrisburg, PA 17108 -1146 • ph: 717.233.5731 29 Dowlin Forge Road • Exton, PA 19341 • ph: 610.423.4200 • fax: 610.423A201 935765.1 www. rhoads- sinon. corn February 3, 2014 Page 2 The Bank's election not to exercise any of its other rights and remedies at the present time, and any financial accommodations the Bank may have made to date, shall not be construed as a waiver of any rights or remedies of the Bank. Nothing contained herein or in any other Communication or in any ongoing discussions or negotiations which have or may take place between the Obligors and the Bank shall directly or indirectly: (i) create any obligation upon the Bank to defer any enforcement action or make any further financial accommodations; (ii) constitute a consent or waiver of any past, present or future Event of Default or other violation of any provisions of any Loan Document; (iii) amend, modify or operate as a waiver of any provision of any Loan Document or any right, power, privilege or remedy of the Bank thereunder; or (iv) constitute a course of dealing or other basis for altering any duty or obligation owed by the Obligors to the Bank. Nothing contained in this Ietter shall confer on any Obligor or any other person or entity any right to other or further notice or cure periods with respect to any Event of Default. The Bank expressly reserves all of its rights, powers, privileges and remedies under the Loan Documents and /or applicable laws, including, without limitation, the Bank's right at any time, as applicable: (i) to apply the Default Rate to the obligations under the Loan Documents since the date of inception of the Events of Default; (ii) to commence any legal or other action to collect any or all of the - indebtedness and obligations under the Loan Documents and/or any Collateral or any property pledged by any other person or entity as security for any or all of the indebtedness and obligations under the Loan Documents; (iii) to foreclose or otherwise realize on any or all of the Collateral and /or set -off or apply to the payment of any or all of the indebtedness or obligations under the Loan .Documents any or all of the Collateral; and (iv) to take any other enforcement action or otherwise exercise any or all rights and remedies provided by any Loan Document or by applicable laws. Very truly yours, RHOADS & SINON LLP ce: Robert Rahal, Senior Vice President rage 1 or I Shipment Receipt Address Information Ship to: Sun Yi Chon and Chang Mun Chon Chon Motel Enterprises 227 Ewe Road Mechanicsburg, PA 17055 US 717-231-6692 Ship from: Kate Deringer Sallie, Esquire Rhoads & Sinon LLP One S. Market Square 12th Floor Harrisburg, PA 17108 US 7172335731 Shipment Information: Tracking no,: 797794833 866 Ship date: 02/03/2014 Estimated shipping charges: 20.30 Package Information Pricing option: FedEx Standard Rate Service type: Priority Overnight Package type: FedEx Envelope Number of packages: 1 Total weight: 1 L13S Declared Value: 0,00 USD Special Services: Pickup /Drop -off: Use an already scheduled pickup at my location Billing Information: Bill transportation to: rhoads & sinon LLP -796 Your reference: 12409/26 P.O. no.: Invoice no.: Department no.: Thank you for shipping online with FedEx ShipManager at fedex.com, Please Note FedEx will not be responsible for any daim In excess of 5100 per package, whether the result of loss, damage, delay, non- derlvery, misdelvery, or misinformation, unless you declare a higher value, pay an additional charge, document your actual loss and file a timely Beim Limitations lound In the current FedEx Service Guide apply. Your right to recover from FedEx for any loss, including Intrinsic value rattle package, loss elute:, income interest, profit, attorney's foes, costs, and other (nuns of damage whether direct, Incidental, consequential, or special Is limited le Inc greater of 0100 or the authorized declared value. Recovery cannel exceed actual documented loss. Maximum for Items of extreordinety value Is $200. e.g., jewelry, predous metals, negotiable Instruments and other items listed In our Service Guide Written clabns must be road willsin 1(2(01 lime limits; Consult the applicable FedEx Service Guido for details. The estimated shipping charge may be different than the actual onerous for your shipment. Differences may occur based on actual weight, dimunslons, and other factors. Consult the applicable FedEx Service Gulch, er the FedEx Rate Sheets for delads on how shipping charges aro calculated. • lattps://www.feclex.cornishipping/html/en/PrintIFrame.html 2/3/2014 EXHIBIT "D" DISCLOSURE FOR CONFESSION OF JUDGMENT Borrower: Chang Mun'Chon Sun YI Chon 227 Ewe Road Mochanlcsburg, PA 17055 boclerantl Chon Motor Entorprlses, Inc, 227 Ewe Road Macharolcsburp, PA iT055 London: Graystorw Bank, o Dfvlslon of Graystono Tower Bank Capita! Region 1A2 Markel Street Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS I'S. DAY OF� , 20_tti , A GUARANTY FOR AN UNLIMITED AMOUNT. • A. THE UNDERSIGNED UNDERSTANDS THAT THE GUARANTY CONTAINS A CONFESSION OF JU6GMENT PROVISION TIiAT WOULD PERMIT LENDER. /0 ENTER JUDGMEt{T AGAINST DECLARANT IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE 70 DECLARANT AND IrSITHOLIT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OP JUDGMENT. IN EXECUTING THE GUARANTY, BEING FURY AWARE OF DECLARANT'S RIGHTS 70 ADVANCE NOTICE AND 70 A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE GUARANTY, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS 70 LENDER'S ENTERING JUDGMENT AGAINST DECLARANT DY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION, B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT 70 ENTER JUDGMENT AGAINST DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO 007-/TAIN$'LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY or JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON TAKING POSSESSION OF OR OTHERWISE SEI2ING DECLARANT'S PROPERTY, IN FULL DR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, DUNG FULLY AWARE OF DECLARANTS RIGHTS TO ADVANCE: NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, THE' UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND 'CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON me JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE. C, AFTER HAVING READ AND DETERMINED WHICH OF NE "FOLLOWING STATEMENTS ARE APPLICABLE, DY INITIALING EACH STATEMENT THAT APPLIES, TIIE UNDERSIGNED REPRESENTS THAT; INITIALS 1, DECLARANT WAS REPRESENTEO BY DECLARANTS OWN INDEPENDENT LEGAL COUNSEL 1N CONNECTION WITH THE GUARANTY. PRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OP JUDGMENT PROVISION IN THE GUARANTY TO DECLARANT'S ATTENTION, THIS DISCLOSURE 1S GIVEN UNDER SEAL AND IT 10 INTENDED THAT THIS 01SCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT; CHUM MOTRL NTERpR1S�: INC, s j YIC .•1P Enterprises, Inc. - Troosurar of Chon Mole! _Peal) pcs t«t.p 4 DISCLOSURE FOR CONFESSION OF JUDGMENT Borrowor: Chang Mun Chon sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Declarant: Chang Mun Chon 227 Ewa Road Mechanicsburg, PA 17055 London Grayelona Dank, a Otvlsion of Graystana Towor Bank Capital Region 112 Markot Street Harrisburg, PA 17101 DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS / DAY OF Sept . , 201(7 , A PROMISSORY NOTE FOR $3,800,000.00 OBLIGATING ME TO REPAY THAT AMOUNT. A. I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO ME MO WITHOUT OFFERING ME AN OPPORTUNITY 70 DEFEND AGAINST THE ENTRY OF JUDGMENT, IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT, AGAINST ME UNDER THE NOTE, I AM KNOWINGLY, INTELLIGENTLY, ANO VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST MC WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EfTTIER ADVANCE NOTICE OR A HEARING, 70 EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL-OR PARTIAL PAYMENT OF THE JUDGMENT, IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS 70 ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, 1 AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERALIAW, WITHOUT ()WINO ME ANY ADVANCE HOTICE, C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES,1 REPRESENT THAT; INITIALS 1. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE. )6--'2, A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED' THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE TO 11Y ATTENTION, • D. 1 CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,0001 THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN 11NNTIALEO AND SIGNED 17; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING, TThIS DISCLOSURE IS GIVEN UNDER SEAL AND 17 IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. DECLARANT: X (Seal) Chang Mun Chon • LL-441,1t v.44 C'UM CO C4,4mm r..a 6dk•s. tc IK,. Y. n ,4 ,Ma F„YM • PA r.V,wv11 JC 1i 4%1 )Rd DISCLOSURE FOR CONFESSION OF JUDGMENT Borrower: Chong Mun Chon Sun Y1 Chon 227 EWo Road Mochanlcsburg, PA 17055 DODIBTOMI Sun Yl Chon 227 Ewa Road Mochanlcaburg, PA 17055 Lender: Grayslono Dank, a DlvIolo Copnal Rcglon 112 Markel Streol }I8rrI9burg, PA 17141 0rayslona Towor Dank DISCLOSURE FOR CONFESSION OF JUDGMENT I AM EXECUTING, THIS IS DAY OF .Cep-' , 20 110 , A PROMISSORY NOTE FOR 53,960,000,00 OBLIGATING ME 70 REPAY THAT AMOUNT. A, I UNDERSTAND THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER 70 ENTER JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE H0TE, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT, IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE ANO TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDOMENT CR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST' 1,1E UNDER THE NOT2, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WANING THESE RIGHTS, INCLUDING ANY RIGHT 70 ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S ENTERING JUDGMENT AGAINST },1E SY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION, 0, I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT 70 ENTER JUDGMENT AGAINST ME WITHOUT AOVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS LANGUAGE. THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE DN THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT 1S ENTERED ANO BEFORE EXECUTION ON 7HE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AND 1 EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEOIATELY EXECUTING ON THE JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE. C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH STATEMENT THAT APPLIES, I REPRESENT THAT INITIALS 1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE NOTE, 2, A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE 001405551DN OF JUDGMENT PROVISION IN THE NOTE TO MY ATTENTION, D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS 510,000; THAT THE BLANKS 14 THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED AND SIGNED IT; AN0 THAT I RECEIVED A COPY AT THE TIME OF SIGN140, THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED 711AT THIS - DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW, DECLARANT: X Svn Y,J Iton uuA0444,44. v..u,un: r G+5, 444,4.r, w*bl M. .. tw Inr,7,,1 4%04 f11.•• .I 4 SUSQUEHANNA BANK, Plaintiff v. • IN THE COURT OF COMMON PLEAS OF • CUMBERLAND COUNTY, • PENNSYLVANIA CHANG MUN CHON, SUN YI CHON, . and CHON MOTEL ENTERPRISES, INC., : Defendants To: The Prothonotary CIVIL ACTION - LAW NO. PRAECIPE FOR ENTRY OF JUDGMENT Pursuant to the attached Entry of Judgment, please enter judgment in favor of the Plaintiff Susquehanna Bank and against the Defendants Chang Mun Chon, Sun Yi Chon and Chon Motel Enterprises, Inc., and damages are assessed in the amount of $3,654,362.83 together with interest from the date of judgment accruing at the rate of $572.78 per day plus costs of collection. By: Date: March L 3, 2014 RHOADS & SINON LLP Kathryn D. a ie Holly L. Cli One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146. (717) 233 -5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment,. Attorneys for Plaintiff Susquehanna Bank for all other purposes SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN Y1 CHON, and CHON MOTEL ENTERPRISES, INC., Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. ENTRY OF JUDGMENT AND NOW, this a day of , 2014, Judgment is hereby entered in favor of the Plaintiff Susquehanna Bank and against the Defendants Chang Mun Chan, Sun Yi Chon and Chon Motel Enterprises, Inc., and damages are assessed in the amount of $3,654,362.83 together with interest from the date of judgment accruing at the rate of $572.78 per day plus costs of collection. Prothonotary SUSQUEHANNA BANK, Plaintiff v. • IN THE COURT OF COMMON PLEAS OF • • CUMBERLAND COUNTY, • PENNSYLVANIA CHANG MUN CHON, SUN YI CHON, : and CHON MOTEL ENTERPRISES, INC., : Defendants CIVIL ACTION - LAW NO. RULE 236 NOTICE OF ENTRY OF CONFESSED JUDGMENT To: Chang Mun Chon 227 Ewe Road Mechanicsburg, PA 17055 Sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 You are hereby notified that on March 13, 2014, judgment by confession was entered against you in the amount of $3,654,362.83 plus interest from the date of judgment accruing at the rate of $572.78 per day and costs of collection. Attached hereto are copies of all documents filed with the Prothonotary in support of the confession of judgment. Date: 3// Prothonotary YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Court Administrator 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 Lawyer Referral Service 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240 -6200 Kathryn D. Sallie, Esquire Attorney T.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 Phone: (717) 233-5731 Fax: (717) 231-6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, : and CHON MOTEL ENTERPRISES, INC., : Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION THEREON Notice of Defendant's Rights To: Chang Mun Chon 227 Ewe Road Mechanicsburg, PA 17055 Sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 A judgment in the amount of Three Million Six Hundred Fifty-Four Thousand Three Hundred Sixty-Two and 83/Dollars ($3,654,362/83) plus interest from the date of judgment accruing at the rate of Five Hundred Seventy-Two and 78/Dollars ($572.78) per day and costs of 0 collection, has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a Confession of Judgment contained in a written agreement or other paper allegedly signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMENT AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, 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. Court Administrator 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240-6200 Lawyer Referral Service 4th Floor, Cumberland County Courthouse Carlisle, PA 17013 (717) 240-6200 SUSQUEHANNA BANK, Plaintiff vs. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendant : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY, : PENNSYLVANIA : NO. 14 -1487 CIVIL TERM : CIVIL ACTION -LAW CERTIFICATE OF SERVICE I hereby certify that I am this day serving a copy of the foregoing Petition upon the persons by First Class Postage Paid Mail, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by mailing the same by first class mail, addressed as follows: Kathryn D. Sallie, Esquire Holly L. Cline, Esquire One South Market Square, 12"' Floor P.O. Box 1146 Harrisburg, PA 17108 Date: y I 0 1 114 Respectfully Submitted, FOREMAN & CARACIOLO, P.C. Jennifer right, Le. ` Assistant 112 Market Street, . Floor Harrisburg, PA 17101 717 -236 -9391 — Telephone 717 - 236 -6602 — Facsimile Kathryn D. Sallie, Esquire Attorney 1.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline @rhoads - sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 Phone: (717) 233 -5731 Fax: (717) 231 -6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. ilk. PENNSYLVANIA , 1 Y : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, : PENNSYLVANIA CIVIL ACTION - LAW CHANG MUN CHON, SUN YI CHON, NO. 2014 -CV -1487 and CHON MOTEL ENTERPRISES, INC., Defendants PROOF OF SERVICE Attached hereto as Exhibit "A" is a true and correct copy of the Sheriff's Return of Service of the Complaint in Confession of Judgment, Praecipe for Entry of Judgment, Confession of Judgment, Entry of Judgment, Rule 236 Notice of Entry of Confessed Judgment, and Notice Under Rule 2958.1 of Judgment and Execution thereon, which were served upon the above - referenced Defendants on March 19, 2014. By: Respectfully submitted, RHOADS & SINON LLP Kathryn D. Holly L. Cline One South Market Square, 12`x' Floor P.O. Box 1146 Harrisburg, PA 17108 -1146 (717) 233 -5731 Date: April 61 , 2014 2 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes EXHI=BIT "A" 690169.1 Ronny R Anderson Sheriff Jody S Smith .Chief Deputy Richard W Stewart Solicitor SHERIFF'S OFFICE OF CUMBERLAND COUNTY •� OFFICE OF T $H,Vs'IFF Susquehanna Bank vs. Chang Mun Chon (et al.) Case Number 2014-1487 SHERIFF'S RETURN OF SERVICE 03/19/2014 02:01 PM - Deputy Jason KnsIer, being duly sworn according to law, served the requested Complaint in Confession of Judgment, Entry of Judgment, Confession of Judgment, Entry of Judgment, Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2956.1 of Judgment and Execution thereon by handing a true copy to a person representing themselves to be Sun Yi Chon, Owner, who accepted as Adult Person in Charge' for Chon Motel Enterprises at 227 Ewe Road, Lower Allen, Mechanicsburg, PA 17055. '� � tfu-^��,-��~�� 03/19/2014 02:01 PM - Deputy Jason Kinser, beirig duly sworn according to law, served the requested Complaint in Confession of Judgment, Entry of Judgment, Confession of Judgment, Entry of Judgment, Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2958.1 of Judgment and Execution thereon by personafly" handing a true copy to a person representing themselves to be the Defendant,• to wit: Chang Y0unChonat227 Ewe Rd.. Lower Allen, Mechanicsburg, PA17O55. JASO KINS R•,- DEPUTY 03/19/2014 02:01 PM - Deputy Jason Kinsler, being duly sworn according to law, served the requested Complaint in Confession of Judgment, Entry of Judgment, Confession of J d nt, Entry of J d nt Rule 236 Notice of Entry of Confessed Judgment and Notice Under Rule 2958.1 of Jud ent and Execution thereon by handing a true copy to a person representing themselves to be the Defendant, to wit: Sun Yi Chon at 227 Ewe Rd., LowerAUonTwp.. YNechnnicsburg, PA 17055. SHERIFF COST: $717S SO ANSWERS, March 31.2O1'4: ,'� n`l-''. ; 3s: •`��/'� �- \ .'� RONNYR ANDERSON .SHERIFF ;'.' ^. , . /�cr " �sm' s-,^c� � '��' �. . CERTIFICATE OF SERVICE I hereby certify that on this day of April, 2014, a true and correct copy of the foregoing document was served by means of United States mail, first class, postage prepaid, upon the following: Chang Mun Chon 227 Ewe Road Mechanicsburg, PA 17055 Sun Yi Chon 227 Ewe Road Mechanicsburg, PA 17055 Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 SUSQUEHANNA BANK, : IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION — LAW : NO. 14 -1487 CIVIL vs. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendants: 7 amp IN RE: DEFENDANTS' MOTION TO STRIKE ALL AND /OR OPEN JUDGMENT ORDER AND NOW, this id'4 day of April, 2014, in consideration of the Defendants' Motion to Strike All and/or Open Judgment: 1. A rule is issued upon the plaintiff to show cause why the relief requested ought not to be granted; 2. the plaintiff shall file an answer to the petition within twenty (20) days of service; 3. depositions shall be completed within forty -five (45) days; 4. the petition shall be decided under Pa. R.C.P. No. 206.7; 5. argument is set for June 5, 2014, at 11:00 a.m. in Courtroom Number 4; and 6. notice of the entry of this order shall be provided to all parties by the defendants. BY THE COURT, SUSQUEHANNA BANK, Plaintiff VS. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendant IN THE COURT OF COMMON PLEAS -II t=3 : OF CUMBERLAND COUNTY, _va _ ....- -4 PENNSYLVANIA rrico x2p = -.r- m.-L. z rn -o z2 : NO. 14-1487 CIVIL TERM <C) : CIVIL ACTION-LAW >e) = =c) -5.2 cl 2.1.., ---i PROOF OF SERVICE I hereby certify that a true and correct copy of the Order dated April 15, 2014 in the above captioned matter was served to the parties listed below by hand delivery on April 18, 2014 and addressed as follows: L41L1 111-1 Date Kathryn D. Sallie, Esquire Holly L. Cline, Esquire One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 Respectfully submitted, FOREMAN & CARACIOLO, P.C. Jennifer right, L9a1 Assistant 112 Market Street, 6(h Floor Harrisburg, PA 17101 Telephone (717) 236-9391 Facsimile (717) 236-6602 Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 Phone: (717) 233-5731 Fax: (717) 231-6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., : Defendants 1-' LED -Q : LICE OF THE PROTHONOTARY 2014 MAY -2 P 912: 34 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2014 -CV -1487 UNCONTESTED MOTION FOR EXTENSION OF TIME TO FILE ANSWER TO RULE TO SHOW CAUSE Plaintiff, Susquehanna Bank (the `Bank"), by and through its undersigned counsel, files the within Uncontested Motion for Extension of Time to File an Answer to Rule to Show Cause, and, in support thereof, avers as follows: 1. On March 13, 2014, the Bank filed, inter alia, a Complaint in Confession of Judgment and confessed judgment against Defendants, Chang Mun Chon, Sun Yi Chon and Chon Motel Enterprises, Inc. (collectively, "Defendants"), in the above -captioned matter. 2. On April 9, 2014, Defendants filed a Petition to Strike All and/or Open Judgment ("Petition"), seeking the issuance of a rule to show cause. 3. By way of Order dated April 15, 2014, by the Honorable Kevin A. Hess, this Court issued a rule upon the Bank to show cause why Defendants are not entitled to the relief requested in Defendants' Petition ("Rule") and ordered a rule returnable in twenty (20) days from the date of service of the Order. The Court further ordered that the above -captioned matter be scheduled for a hearing on June 5, 2014 regarding Plaintiff's Petition. 4. Since the Court issued its Order dated April 15, 2014, the parties have been amicably working towards a resolution of the issues in this matter and believe that a resolution is imminent, which resolution would obviate the need for the Bank to file an answer to the Rule. 5. Thus, the parties request that the Court grant the Bank a fifteen (15) day extension of time to file an answer to the Rule in order to provide the parties additional time to finalize a settlement. 6. Pursuant to C.C.R.P. 208.2(d), counsel for the Bank provided opposing counsel with the full text of this motion and proposed order, and Defendants' counsel does not oppose the within request for a fifteen (15) day extension of time to file an answer. WHEREFORE, Plaintiff, Susquehanna Bank, respectfully requests that this Honorable Court grant Plaintiff an extension of time to file an answer to the Rule to Show Cause issued by the Court on April 15, 2014. 3 By: Date: May at 2014 4 Respectfully submitted, RHOADS & SINON LLP / I 11-. Kathryn D. Sal - Holly L. Cline One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for Defendants Chon Motel Enterprises, Inc., Chang Mun Chon and Sun Yi Chon for purposes of confession of judgment; Attorneys for Plaintiff Susquehanna Bank for all other purposes CERTIFICATE OF SERVICE I hereby certify that on this a4 day of May, 2014, a true and correct copy of the Uncontested Motion for Extension of Time to File an Answer to Rule to Show Cause was served by means of United States mail, first class, postage prepaid, upon the following: Bruce D. Foreman, Esquire Foreman & Caraciolo, P.C. 112 Market Street, 6th Floor Harrisburg, PA 17101 //4 Pa,t,,t,;( SUSQUEHANNA BANK, Plaintiff . IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY, : PENNSYLVANIA vs. : NO. 14-1487 CIVIL TERM CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendant CIVIL ACTION -LAW PRAECIPE i-, D --+ t; On behalf of Plaintiff in the above captioned please withdraw the Petition to Open and/or Strike with Prejudice. Respectfully submitted, FOREMAN & C ; CIOLO, P.C. Bruce D. Foreman, Esq'! ire Attorney I.D. No. 21193 112 Market Street, Sixth Floor Harrisburg, PA 17101 (717) 236-9391 — Telephone (717) 236-6602 - Facsimile SUSQUEHANNA BANK, Plaintiff vs. CHANG MUN CHON, SUN YI CHON, and CHON MOTEL ENTERPRISES, INC., Defendant : IN THE COURT OF COMMON PLEAS : OF CUMBERLAND COUNTY, : PENNSYLVANIA . NO. 14-1487 CIVIL TERM : CIVIL ACTION -LAW - CERTIFICATE OF SERVICE I. hereby certify that I am this day serving a copy of the foregoing Praecipe upon the persons by First Class Postage Paid Mail, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by mailing the same by first class mail, addressed as follows: Kathryn D. Sallie, Esquire Holly L. Cline, Esquire One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108 Date: 51 111 Respectfully Submitted, FOREMAN & CARACIOLO, P.C. Jennifer right, Le l Assistant 112 Market Street, Floor Harrisburg, PA 17101 717-236-9391 — Telephone 717-236-6602 — Facsimile Kathryn D. Sallie, Esquire Attorney I.D. No. 208116 ksallie@rhoads-sinon.com Holly L. Cline, Esquire Attorney I.D. No. 208141 hcline@rhoads-sinon.com RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 Phone: (717) 233-5731 Fax: (717) 231-6637 Attorneys for Plaintiff SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, : and CHON MOTEL ENTERPRISES, INC., : Defendants FILEO-OFF;CE THE PROTHONOTARY 20111MAY -7 AM123 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2014 -CV -1487 ORDER AND NOW, this 1 day of May, 2014, it is hereby ORDERED that Plaintiff's Uncontested Motion for Extension of Time to File an Answer to Rule to Show Cause, in connection with Defendants' Petition to Strike All and/or Open Judgment, is GRANTED. It is hereby ORDERED that Plaintiff is granted a fifteen (15) day extension to file an answer to the Rule to Show Cause issued by the Court's April 15, 2014 Order. Kevin A. Hess, P.J. F RHOADS & SINON LLP BY: KATHRYN D. SALLIE, ESQUIRE ATTORNEY I.D. No. 208116 HOLLY L. CLINE, ESQUIRE ATTORNEY I.D. No. 208141 ONE SOUTH MARKET SQUARE, 12TH FLOOR P.O. Box 1146 HARRISBURG, PA 17108-1146 (717) 233-5731 SUSQUEHANNA BANK, Plaintiff v. CHANG MUN CHON, SUN YI CHON, And CHON MOTEL ENTERPRISES, INC., Defendants : ATTORNEYS FOR PLAINTI '- I'`�rt� `��'s • I i- i fir PIS' O I IlONO Ai; 2ILiOEC 30 AN10:27 CUMBERLAND COUNTY PENNSYLVANIA : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION — LAW : No. 14-1487 PRAECIPE TO MARK JUDGMENT FOR USE OF STABILIS MASTER FUND III, LLC To the Prothonotary: Please mark the Judgment in this matter for the use of Stabilis Master Fund III, LLC. Date: l I I /At 396139.1 RHOADS & SINON LLP By: Kathryn D.a11ie, Esquire Attorney I.D. No. 208116 Holly L. Cline, Esquire Attorney I.D. No. 208141 Attorney for Plaintiff, Susquehanna Bank One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 49.50 pc/ Pi g�3g3SD26 DINSMORE & SHOHL LLP BY: RICHARD A. O'HALLORAN, ESQ. I.D. # 41460 ROSS G. CURRIE, ESQ. I.D. # 206085 ALISON A. BESSER, ESQ. I.D. # 315365 1200 Liberty Ridge Drive, Suite 310 Wayne, PA 19087 T: (610) 408-6020 / F: (610) 408-6021 SUSQUEHANNA BANK, Plaintiff, v. CHANG MIN CHON, SUN YI CHON, And CHON MOTEL ENTERPRISES, INC., Defendants. Attorneys for Plaintiff COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 14-1487 CERTIFICATE OF SERVICE The undersigned hereby certifies that a copy of the foregoing Praecipe to Mark Judgment for Use of Stabilis Master Fund III, LLC and Notice of Appearance of Counsel have been served upon the following persons, by regular mail on December 23, 2014: Chang Mun Chon Sun Yi Chon Chon Motel Enterprises, Inc. 227 Ewe Road Mechanicsburg, PA 17055 By: Foreman & Caraciolo, P.C. 112 Market Street, 6th Floor Harrisburg, PA 17101 Attn: Bruce Foreman, Esq. DINSMORE & SHOHL LLP ALISON A. BESSER, ESQ. PA I.D. #315365 DINSMORE & SHOHL LLP BY: RICHARD A. O'HALLORAN, ESQ. I.D. # 41460 ROSS G. CURRIE, ESQ. I.D. # 206085 ALISON A. BESSER, ESQ. I.D. # 315365 1200 Liberty Ridge Drive, Suite 310 Wayne, PA 19087 T: (610) 408-6020 / F: (610) 40876021 SUSQUEHANNA BANK, Plaintiff, v. CHANG MUN CHON, SUN YI CHON, And CHON MOTEL ENTERPRISES, INC., Defendants. Attorneys for Plaintiff PRC H 2014 DEC 30 Ii i ID: 27 CUMBERLAND COUNTY PENNSYLVANIA COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA No. 14-1487 NOTICE OF APPEARANCE OF COUNSEL TO THE PROTHONOTARY: Kindly note the appearances of Richard A. O'Halloran, Esq., Ross G. Currie, Esq., and Alison A. Besser, Esq. on behalf of Stabilis Master Fund III, LLC in the above -captioned action. MORE & SHOHL LLP Date: December 23, 2014 By: RIC RD A. O'HALLORAN, ESQ. PA I.D #41460 ROSS G. CURRIE, ESQ. PA I.D. # 206085 ALISON A. BESSER, ESQ. PA I.D. #315365 1200 Liberty Ridge Drive, Suite 310 Wayne, PA 19087 T (610) 408-6020 / F (610) 408-6021 richard.ohalloran@dinsmore.com ross.currie@dinsmore.com alison.besser@dinsmore.com