HomeMy WebLinkAbout14-5345 IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff NO.: #, S3 qs-- C/(/t
vs. ��
GERALD L. STAKE, an individual
Defendant
CONFESSION OF JUDGMENT
Pursuant to the authority contained in the aforesaid $80,000 Note and the Guaranties thereof, and
the $8,000 and Guaranties thereof, copies of which are attached to the Complaint filed in this
action, I appear for the Plaintiff and confess judgment in favor of Plaintiff and against Defendant
as follows:
COUNT L• - c
Principal $ 55,000.00 c., 11
..aM-
Interest through 9/10/14 $ 598.13
Late Charges $ 12.79 '
_ 9
Attorney's Fees and Costs $ 5,559.81E5 z
(10%of Unpaid Principal &Accrued Interest) 5C .e
zr r-
k :7D
TOTAL $ 61,170.73
With interest on the principal sum of$55,000.00 from September 10, 2014 at the contractual
rate.
COUNT 11:
Principal $ 7349.45
Interest through 9/10/14 $ 794.55
Late Charges $ 0.00
Attorney's Fees and Costs $ 814.40
(10%of Unpaid Principal &Accrued Interest)
TOTAL $ 8,958.40
With interest on the principal sum of$7,349.45 from September 10, 2014 at the contractual rate.
00 tow If
C /37s'
FOR A TOTAL sum of$70,129.13 with interest on the principal sum ($62,349.45) from
September 10, 2014 at the contractual rate, and brings said instrument to Court to recover the
said sum.
DETHLEF , LLC
BY:
Darrell Dethlefs, Esquire
Attorneys for Plaintiff
PA ID: 58805
2132 Market Street
Camp Hill, PA 17011
717-975-9446
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS & MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG,
NO: �y- S311
Plaintiff,
vs.
TYPE OF PLEADING
GERALD L. STAKE, an individual
CIVIL ACTION—COMPLAINT IN
Defendants CONFESSION OF JUDGMENT
FILED ON BEHALF OF:
Farmers & Merchants Trust Company of
To:DEFENDANTS Chambersburg, Plaintiff
YOU ARE HEREBY NOTIFIED TO PLEAD
TO THE ENCLOSED COMPLAINT WITHIN
TWENTY DAYS FROM SERVICE HEREOF,
ORA DEF UL JUDGEME BE Darrell Dethlefs, Esquire:
ENTERE G OU. PA ID: 58805
Attorney fo intiff
I HEREBY CERTIFY THAT THE DETHLEFS-PYKOSH LAW GROUP, LLC
ADDRESS OF THE PLAINTIFF IS:
20 South Main Street
Chambersburg,PA 17201
r-;
AND TH DEFENDANTS: 2132 Market Street ,
142 E.L u e r
isle,PA 17013 Camp Hill, PA 17011 ga=yco
717-975-9446 m
rf,
Attornor Plaintiff -�G> c:) CD
a C7
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff NO.:
vs. d
GERALD L. STAKE, an individual
Defendant
COMPLAINT
CIVIL ACTION—COMPLAINT IN CONFESSION OF JUDGMENT
AND NOW comes, Farmers and Merchants Trust Company of Chambersburg, by its
attorneys, Dethlefs-Pykosh Law Group, LLC, and files this Complaint in Confession of
Judgment as follows:
1. Farmers and Merchants Trust Company of Chambersburg ("Plaintiff') is a financial
institution under the laws of the United States of America, with its principal place of
business located at 20 South Main Street, Chambersburg, Pennsylvania 17201.
2. The Defendant, Gerald L. Stake, is an adult individual residing at 142 E. Louther
Street, Carlisle, Pennsylvania 17013.
COUNT
Confession of Judgment of the $80,000 Note and Guaranty
3. On or about March 16, 2010, Stake Enterprises, Inc., executed and delivered a certain
Promissory Note in favor of Plaintiff in the original principal amount of$80,000,
which authorized a Confession of Judgment. A true and correct copy of said Note is
marked as Exhibit A, attached hereto and made a part hereof.
4. On or about March 16, 2010, Defendant, Gerald L. Stake, executed and delivered to
Plaintiff a Commercial Guaranty ("Stake Guaranty V) irrevocably guarantying and
becoming surety for all obligations or Stake Enterprises, Inc., to Plaintiff under the
$80,000 Note, which Mr. Stake Guaranty authorized a Confession of Judgment. A
true and correct copy of the Stake Guaranty is marked as Exhibit B, attached hereto
and made a part hereof.
5. Neither the $80,000 Note, nor the guaranty, thereof,have been released, transferred,
or assigned.
6. Judgment has not been entered against the Defendant on the $80,000 Note, or the
guaranty,thereof, in any jurisdiction.
7. Defendant is in default under the aforesaid $80,000 Note and Guaranty, thereof, for
failure to pay installments of principal and interest when due.
8. The transaction which authorizes a confession was not a consumer credit transaction.
9. The itemization of the amount due, including interest and attorney's fees as
authorized by the $80,000 Note as follows:
Principal Due $ 55,000.00
Interest through 9/10/2014 $ 598.13
Late Charges $ 12.79
Attorney's Fees and Costs $ 5,559.81
(10% of Unpaid Principal & Accrued Interest)
TOTAL $ 61,170.73
With interest on the principal sum of$55,000.00 from September 10, 2014 at the
contractual rate.
WHEREFORE, Plaintiff, as authorized by the $80,000 Note and Guaranty, demands
judgment in the amount of$61,170.73 with interest on the principal sum($55,000.00)
from September 10, 2014 at the contractual rate.
COUNT II
Confession in Judgment of the $8,000 Note and Guaranty
10. Plaintiff hereby incorporates by reference its averments in Paragraphs 1 through 9 as
if set forth fully herein.
11. On or about February 1, 2011, Stake Enterprises, Inc., executed and delivered a
certain Promissory Note in favor of Plaintiff in the original principal amount of
$8,000, which authorized a Confession of Judgment. A true and correct copy of said
Note is marked as Exhibit C, attached hereto and made a part hereof.
12. On or about February 1, 2011, Defendant, Gerald L. Stake, executed and delivered to
Plaintiff a Commercial Guaranty ("Stake Guaranty 2") irrevocably guarantying and
becoming surety for all obligations or Stake Enterprises, Inc.,to Plaintiff under the
$8,000 Note,which Stake Guaranty authorized a Confession of Judgment. A true and
correct copy of the Mr. Stake Guaranty is marked as Exhibit D, attached hereto and
made a part hereof.
13. Neither the $8,000 Note, nor the guaranty,thereof, have been released,transferred, or
assigned.
14. Judgment has not been entered against the Defendant on the $8,000 Note, or the
guaranty, thereof, in any jurisdiction.
15. Defendant is in default under the aforesaid $8,000 Note and Guaranty, thereof, for
failure to pay installments of principal and interest when due.
16. The transaction which authorizes a confession was not a consumer credit transaction.
17. The itemization of the amount due, including interest and attorney's fees as
authorized by the $8,000 Note as follows:
Principal Due $ 7,349.45
Interest through 9/10/2014 $ 794.55
Late Charges $ 0.00
Attorney's Fees and Costs $ 814.40
(10% of Unpaid Principal &Accrued Interest)
TOTAL $ 8,958.40
With interest on the principal sum of$7,349.45 from September 10, 2014 at the
contractual rate.
WHEREFORE, Plaintiff, as authorized by the $8,000 Note and Guaranty,
demands judgment in the amount of$8,958.40 with interest on the principal sum
($7,349.45) from September 10, 2014 at the contractual rate.
WHEREFORE, Plaintiff as authorized by the $80,000 Note, the $8,000 Note, and
the Guaranties, demands judgment in its favor an against Defendants in the total sum of
$70,129.13 with interest on the principal sum ($62,349.45) from September 10, 2014 at
the contractual rate, and brings said instrument to Court to recover the said sum.
DETHLEFS-PY H LAW GROUP, LLC
BY:
Darrell De lefs, Esquire
Attorney for Plaintiff
PA ID: 58805
2132 Market Street
Camp Hill, PA 17011
717-975-9446
THIS IS AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED
WILL BE USED FOR THAT PURPOSE.
EXHIBIT A
PROMISSORY NOTE
Ptfnetpal Lean.Date Nf�turity Lain Nq : : f All rco�l Accourtt t)�ICer 1n�tlafs
$SO�OP.4.00 !:Q3 16 Z:Q10 :, r
1#E1N
References in the boxes above are for Lenders use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing"'""has been omitted due to text length limitations.
Borrower: Stake Enterprises,Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle,PA 17013 Commercial Services Department
20 South Main Street
P.0.Box 6010
Chambersburg,PA 17201-6010
(717)264-6116
Principal Amount: $80,000.00 Date of Note: March 16, 2010
PROMISE TO PAY. Stake Enterprises, Inc. ("Borrower") promises to pay to Farmers and Merchants Trust Company of Chambersburg
("Lender"),or order,in lawful money of the United States of America,on demand,the principal amount of Eighty Thousand&00/100 Dollars
($80,000.00)or so much as may be outstanding,together with interest on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of each advance until repayment of each advance.
PAYMENT. Borrower will pay this loan in full immediately upon Lender's demand. Borrower will pay regular monthly payments of all accrued
unpaid interest due as of each payment date,beginning April 15,2010,with all subsequent interest payments to be due on the same day of
each month after that. Unless otherwise agreed or required by applicable law,payments will be applied first to any unpaid collection costs;then
to any late charges;then to any accrued unpaid interest;and then to principal. Borrower will pay Lender at Lender's address shown above or at
such other place as Lender may designate in writing.
VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index
which is the U.S.Prime Rate as quoted in the Money Rates section of the Wall Street Journal. When a range of rates are published,the higher
of the rates will be used. (the"Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes
unavailable during the term of this loan,Lender may designate a substitute index after notifying Borrower. Lender will tell Borrower the current
Index rate upon Borrower's request. The interest rate change will not occur more often than each time there is a change in the Index. Borrower
understands that Lender may make loans based on other rates as well. The Index currently is 3.250% per annum. Interest on the unpaid
principal balance of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 0.750
percentage points over the Index, adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial
rate of 4.500%per annum based on a year of 360 days. NOTICE: Under no circumstances will the interest rate on this Note be less than
4.500%per annum or more than the maximum rate allowed by applicable law.
INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis;that is,by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is
outstanding. All interest payable under this Note is computed using this method.
PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be
subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the
foregoing,Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not,unless agreed
to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early
payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or
similar language. If Borrower sends such a payment,Lender may accept it without losing any of Lender's rights under this Note,and Borrower
will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts,including any check
or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other
conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Farmers and Merchants Trust Company of
Chambersburg,P.0.Box 6010 Chambersburg,PA 17201-6010.
LATE CHARGE. If a regularly scheduled interest payment is 16 days or more late,Borrower will be charged 6.000%of the unpaid portion of the
regularly scheduled payment. If Lender demands payment of this loan,and Borrower does not pay the loan in full within 16 days after Lender's
demand,Borrower also will be charged 6.000%of the unpaid portion of the sum of the unpaid principal plus accrued unpaid interest.
INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by
adding a 2.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate
change that would have applied had there been no default. If judgment is entered in connection with this Note,interest will continue to accrue
after the date of judgment at the rate in effect at the time judgment is entered. However,in no event will the interest rate exceed the maximum
interest rate limitations under applicable law.
LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal
balance under this Note and all accrued unpaid interest immediately due,and then Borrower will pay that amount.
ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay
Lender that amount. This includes,subject to any limits under applicable law,Lender's reasonable attorneys'fees and Lender's legal expenses,
whether or not there is a lawsuit, including reasonable attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction),and appeals. If not prohibited by applicable law,Borrower also will pay any court costs,in addition to
all other sums provided by law.
JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,proceeding,or counterclaim brought by either Lender
or Borrower against the other.
GOVERNING LAW. This Note will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of
the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been accepted by Lender in the
Commonwealth of Pennsylvania.
CHOICE OF VENUE. If there is a lawsuit,Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Franklin County,
Commonwealth of Pennsylvania.
DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or
preauthorized charge with which Borrower pays is later dishonored.
RIGHT OF SETOFF. To the extent permitted by applicable law,Lender reserves a right of setoff in all Borrower's accounts with Lender(whether
checking,savings,or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However,this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be prohibited by
law. Borrower authorizes Lender,to the extent permitted by applicable law,to charge or setoff all sums owing on the indebtedness against any
and all such accounts,and,at Lender's option,to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff
rights provided in this paragraph.
PROPERTY INSURANCE. Borrower understands that Borrower is required to obtain insurance for the collateral securing this Note. Further
information concerning this requirement is set forth in the Security Agreement and in the Agreement to Provide Insurance, all the terms and
conditions of which are hereby incorporated and made a part of this Note.
LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note may be requested either orally or in writing by
Borrower or as provided in this paragraph. Lender may,but need not,require that all oral requests be confirmed in writing. All communications,
instructions, or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. The following person or
persons are authorized to request advances and authorize payments under the line of credit until Lender receives from Borrower, at Lender's
address shown above,written notice of revocation of such authority: Gerald L.Stake,President of Stake Enterprises,Inc. Borrower agrees to
be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's
accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by
Lender's internal records,including daily computer print-outs.
LINE OF CREDIT RENEWAL.The line of credit will expire on May 31,2011. The Lender,in its sole option, may renew the line of credit based
on Borrower's financial condition and adherence to terms and covenants of the Promissory Nate and all related Loan documents.
ANNUAL FINANCIAL STATEMENTS.Furnish Lender annual tax returns,as soon as available but in no event later than thirty(30)days after the
applicable filing date for the tax reporting period ended, Federal and other governmental tax returns, prepared by an accountant satisfactory to
Lender.
DISCLO, 3E FOR CONFESSION OF J. WENT
aII. .:.Coll:.. t�#s...
Gate....... ttt# .:..... .:.:............. .............-::.:::.: .....:.....:::::::::::. ::::.:::.::.::.::::...::::..........................::::..::::::.::.: ...::::. .. ..... .
E3E
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing "***" has been omitted due to text length limitations.
Borrower: Stake Enterprises, Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle, PA 17013 Commercial Services Department
20 South Main Street
P. 0. Box 6010
Chambersburg, PA 17201-6010
(717) 264-6116
Declarant: Gerald L. Stake
142 East Louther Street
Carlisle,PA 17013
DISCLOSURE FOR CONFESSION OF JUDGMENT
I AM EXECUTING,THIS DAY OF ^ 20 A GUARANTY FOR AN UNLIMITED AMOUNT.
A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTEI
JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOU
OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWAR
OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THA
LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THES
RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXPRESSLY AGREE AND CONSENT T(
LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION.
INITIALS:
B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANC
NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOUL
PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON TH
JUDGMENT BY FORECLOSING UPON,ATTACHING, LEVYING ON,TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FUL
OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTIC
AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AN
VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON TH.
JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW,WITHOUT GIVING ME ANY ADVANCE NOTICE.
INITIALS:
C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EAC
STATEMENT THAT APPLIES, I REPRESENT THAT:
INITIALS
1. 1 WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE GUARANTY.
2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANI
TO MY ATTENTION.
D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000;THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN 1 INITIAL=
AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING.
THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE TI
EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
DECLARANT:
X ,..
jSeal)
Gerald E. Stake
LASER PRO L4Rding.V4,.5.46.00.003 Cam.Ha la,d F—Cial S111[l4na,Inc.1997,2010. All Right,R......d. -PA T:lwin pt%CFI\LPL\030.FC TR-14143 PR 12
PROMISSORY NOTE
(Continued) Page 2
SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives,
successors and assigns,and shall inure to the benefit of Lender and its successors and assigns.
GENERAL PROVISIONS. This Note is payable on demand. The inclusion of specific default provisions or rights of Lender shall not preclude
Lender's right to declare payment of this Note on its demand. If any part of this Note cannot be enforced,this fact will not affect the rest of the
Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person
who signs,guarantees or endorses this Note,to the extent allowed by law,waive presentment, demand for payment,and notice of dishonor.
Upon any change in the terms of this Note,and unless otherwise expressly stated in writing,no party who signs this Note,whether as maker,
guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend
(repeatedly and for any length of time)this loan or release any party or guarantor or collateral;or impair, fail to realize upon or perfect Lender's
security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such
parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification
is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable,it
will not affect the enforceability of any other provisions of this Note.
CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME
FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT
AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST,LATE CHARGES AND ANY AND
ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE,TOGETHER WITH COSTS
OF SUIT,AND AN ATTORNEY'S COMMISSION OF TEN PERCENT(10%)OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR
COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR
MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL
BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE
EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY,BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN
FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A
HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER
SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN
REPRESENTED BY INDEPENDENT LEGAL COUNSEL.
PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE
INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.
THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A
SEALED INSTRUMENT ACCORDING TO LAW.
BORROWER:
STAKE ENTE RISES,INC.
.
By: (Seal)
Gerald L.Stake,Presidentl1f Stake Enterprises,Inc.
LENDER:
FARMERS AND MERCHANTS TRUST COMPANY OF CHAMBERSBURG
X &—G— &J
Br
an E.Weikert,Vice President
U6FR IRO IRnaxF,va.6l6.W.fIW Caw.},viwJf•W fidnb..,R,<.i]6},Mt0. .1FR J,ry Rnwwl.•RR}h.MMpMCFRIrtbA.F<>AF.]m,}
EXHIBIT B
COMMERCIAL GUARANTY
Ptf►tC:pl Loan!]ate
7f
References
Noall1 Crtj.._ 4gco�{rit; Qf€)�er ..:lntfa�IS
References in the boxes above are for Lenders use only and do not limit the applicability of this document to any particular loan or item.
Any item above containing""""has been omitted due to text length limitations.
BorrOWer: Stake Enterprises,Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle,PA 17013 Commercial Services Department
20 South Main Street
P.O.Box 6010
Chambersburg,PA 17201-6010
(717)264-6116
Guarantor: Gerald L. Stake
142 East Louther Street
Carlisle,PA 17013
CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration,Guarantor absolutely and unconditionally
guarantees full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all
Borrower's obligations under the Note and the Related Documents. This is a guaranty of payment and performance and not of collection, so
Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to
pay the Indebtedness or against any collateral securing the Indebtedness,this Guaranty or any other guaranty of the Indebtedness. Guarantor
will make any payments to Lender or its order,on demand,in legal tender of the United States of America,in same-day funds,without set-off or
deduction or counterclaim, and will otherwise perform Borrower's obligations under the Note and Related Documents. Under this Guaranty,
Guarantor's liability is unlimited and Guarantor's obligations are continuing.
INDEBTEDNESS. The word"Indebtedness"as used in this Guaranty means all of the principal amount outstanding from time to time and at any
one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, reasonable
attorneys' fees,arising from any and all debts,liabilities and obligations of every nature or form, now existing or hereafter arising or acquired,
that Borrower individually or collectively or interchangeably with others,owes or will owe Lender. "Indebtedness" includes,without limitation,
loans, advances, debts, overdraft indebtedness, credit card indebtedness, lease obligations, liabilities and obligations under any interest rate
protection agreements or foreign currency exchange agreements or commodity price protection agreements,other obligations, and liabilities of
Borrower,and any present or future judgments against Borrower,future advances,loans or transactions that renew,extend,modify,refinance,
consolidate or substitute these debts, liabilities and obligations whether:voluntarily or involuntarily incurred; due or to become due by their
terms or acceleration;absolute or contingent;liquidated or unliquidated;determined or undetermined;direct or indirect;primary or secondary in
nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or
non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable against Borrower for any reason
whatsoever;for any transactions that may be voidable for any reason(such as infancy, insanity, ultra vires or otherwise); and originated then
reduced or extinguished and then afterwards increased or reinstated.
If Lender presently holds one or more guaranties,or hereafter receives additional guaranties from Guarantor, Lender's rights under all guaranties
shall be cumulative. This Guaranty shall not(unless specifically provided below to the contrary)affect or invalidate any such other guaranties.
Guarantor's liability will be Guarantor's aggregate liability under the terms of this Guaranty and any such other unterminated guaranties.
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 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 effect when received by Lender without the necessity of any acceptance by Lender,or any
notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of
any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have
been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of
revocation must be mailed to Lender,by certified mail,at Lender's address listed above or such other place as Lender may designate in writing.
Written revocation of this Guaranty will apply only to new Indebtedness created after actual receipt by Lender of Guarantor's written revocation.
For this purpose and without limitation, the term "new Indebtedness" does not include the Indebtedness which at the time of notice of
revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this
purpose and without limitation, "new Indebtedness" does not include all or part of the Indebtedness that is: incurred by Borrower prior to
revocation;incurred under a commitment that became binding before revocation;any renewals,extensions, substitutions, and modifications of
the Indebtedness. This Guaranty shall bind Guarantor's estate as to the Indebtedness created both before and after Guarantor's death or
incapacity,regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other
legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect.
Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this
Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this
Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty,and Guarantor
specifically acknowledges and agrees that reductions in the amount of the Indebtedness, even to zero dollars($0.00), shall not constitute a
termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs,successors and assigns so long as any of the
Indebtedness remains unpaid and even though the Indebtedness may from time to time be zero dollars($0.00).
GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or
demand and without lessening Guarantor's liability under this Guaranty,from time to time: (A) prior to revocation as set forth above,to make
one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend
additional credit to Borrower; (B) to alter,compromise,renew,extend,accelerate,or otherwise change one or more times the time for payment
or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the
Indebtedness;extensions may be repeated and 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,enforce,waive,subordinate,fail or decide not to perfect, and release any such security,with
or without the substitution of new collateral; (D) to release,substitute,agree not to sue,or deal with any one or more of Borrower's sureties,
endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of
payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof, including
without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion
may determine; (G) to sell,transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this
Guaranty in whole or in part.
GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or
agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is
executed at Borrower's request and not at the request of Lender; (C) Guarantor has full power,right and authority to enter into this Guaranty;
(D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor
and do not result in a violation of any law,regulation,court decree or order applicable to Guarantor; (E) Guarantor has not and will not,without
the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of
Guarantor's assets,or any interest therein; (F) upon Lender's request,Guarantor will provide to Lender financial and credit information in form
acceptable to Lender,and all such financial information which currently has been,and all future financial information which will be provided to
Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial
information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent
financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (H)
no litigation, claim, investigation, administrative proceeding or similar action(including those for unpaid taxes) against Guarantor is pending or
threatened; (1) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established
adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to
keep adequately informed from such means of any facts,events,or circumstances which might in any way affect Guarantor's risks under this
Guaranty,and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by
Lender in the course of its relationship with Borrower.
GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following:
Annual Statements. As soon as available, but in no event later than one-hundred-twenty (120) days after the end of each fiscal year,
COMMERCIAL GUARANTY
(Continued) Page 2
Guarantor's balance sheet and income statement for the year ended,prepared by Guarantor.
Tax Returns. As soon as available, but in no event later than thirty(30)days after the applicable filing date for the tax reporting period
ended,Federal and other governmental tax returns,prepared by Guarantor.
All financial reports required to be provided under this Guaranty shall be prepared in accordance with GAAP,applied on a consistent basis,and
certified by Guarantor as being true and correct.
GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending
money or to extend other credit to Borrower; (B) to make any presentment, protest,demand,or notice of any kind,including notice of any
nonpayment of the Indebtedness or of any nonpayment related to any collateral,or notice of any action or nonaction on the part of Borrower,
Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional
loans or obligations; (C) to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor;
(D) to proceed directly against or exhaust any collateral held by Lender from Borrower,any other guarantor,or any other person; (E) to give
notice of the terms,time,and place of any public or private sale of personal property security held by Lender from Borrower or to comply with
any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power;or (G) to commit any
act or omission of any kind,or at any time,with respect to any matter whatsoever.
Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including,but not limited to, any rights or
defenses arising by reason of (A) any "one action"or"anti-deficiency" law or any other law which may prevent Lender from bringing any
action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action,
either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects
Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of
rights Guarantor may suffer by reason of any law limiting,qualifying,or discharging the Indebtedness; (C) any disability or other defense of
Borrower,of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other
than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified
impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against
Guarantor is commenced,there is outstanding Indebtedness which is not barred by any applicable statute of limitations;or (F) any defenses
given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower,
whether voluntarily or otherwise,or by any third party,on the Indebtedness and thereafter Lender is forced to remit the amount of that payment
to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the
Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty.
Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any
claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the
Borrower,the Guarantor,or both.
GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is
made with Guarantor's full knowledge of its significance and consequences and that,under the circumstances,the waivers are reasonable and
not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,such waiver shall be
effective only to the extent permitted by law or public policy.
SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter
created,shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower,whether or not Borrower becomes
insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any
claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower,
through bankruptcy,by an assignment for the benefit of creditors, by voluntary liquidation,or otherwise,the assets of Borrower applicable to
the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness.
Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in
bankruptcy of Borrower;provided however,that such assignment shall be effective only for the purpose of assuring to Lender full payment in
legal tender of the Indebtedness. If Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of
Borrower to Guarantor shall be marked with a 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 time to time to file financing statements and continuation statements
and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect,preserve and enforce its rights
under this Guaranty.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:
Amendments. This Guaranty,together with any Related Documents,constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.
Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable
attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay
someone else to help enforce this Guaranty,and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses
include Lender's reasonable attorneys' fees and legal expenses whether or not there is a lawsuit,including reasonable attorneys' fees and
legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the
court.
Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the
provisions of this Guaranty.
Governing Law. This Guaranty will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the
laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions.
Choice of Venue. If there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Franklin
County,Commonwealth of Pennsylvania.
Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty;Guarantor has had the
opportunity to be advised by Guarantor's attorney with respect to this Guaranty;the Guaranty fully reflects Guarantor's intentions and parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses,
claims,damages,and costs(including Lender's attorneys'fees)suffered or incurred by Lender as a result of any breach by Guarantor of the
warranties,representations and agreements of this paragraph.
Interpretation. In all cases where there is more than one Borrower or Guarantor,then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor"
respectively shall mean all and any one or more of them. The words"Guarantor,""Borrower,"and"Lender"include the heirs,successors,
assigns,and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced,that
fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the
provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of
Borrower or Guarantor are corporations,partnerships,limited liability companies,or similar entities,it is not necessary for Lender to inquire
into the powers of Borrower or Guarantor or of the officers,directors,partners,managers,or other agents acting or purporting to act on
their behalf,and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this
Guaranty.
Notices. Unless otherwise provided by applicable law,any notice required to be given under this Guaranty shall be given in writing, and,
except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimile (unless
otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United
States mail,as first class,certified or registered mail postage prepaid,directed to the addresses shown near the beginning of this Guaranty.
All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this
Guaranty entitled"DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written
notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor
agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law,if there is more
than one Guarantor,any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors.
No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand
strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,nor any course of dealing between
COMMERCIAL GUARANTY
(Continued) Page 3
Lender and Guarantor,shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions.
Whenever the consent of Lender is required under this Guaranty,the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in
the sole discretion of Lender.
Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor, and upon Guarantor's heirs, personal
representatives,successors,and assigns,and shall be enforceable by Lender and its successors and assigns.
Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Guarantor against the other.
DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically
stated to the contrary,all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms
used in the singular shall include the plural,and the plural shall include the singular,as the context may require. Words and terms not otherwise
defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code:
Borrower. The word "Borrower" means Stake Enterprises, Inc. and includes all co-signers and co-makers signing the Note and all their
successors and assigns.
GAAP. The word"GAAP"means generally accepted accounting principles.
Guarantor. The word"Guarantor" means everyone signing this Guaranty,including without limitation Gerald L. Stake, and in each case,
any signer's successors and assigns.
Guaranty. The word"Guaranty"means this guaranty from Guarantor to Lender.
Indebtedness. The word"Indebtedness"means Borrower's indebtedness to Lender as more particularly described in this Guaranty.
Lender. The word"Lender"means Farmers and Merchants Trust Company of Chambersburg,its successors and assigns.
Note. The word "Note" means and includes without limitation all of Borrower's promissory notes and/or credit agreements evidencing
Borrower's loan obligations in favor of Lender,together with all renewals of,extensions of,modifications of,refinancings of,consolidations
of and substitutions for promissory notes or credit agreements.
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements,mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness.
CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME
FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER
JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE
CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE
INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID
PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500)
ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THIS 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 TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY.
GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH
CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF
JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL.
EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS
TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND
DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH
IN THE SECTION TITLED"DURATION OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY
EFFECTIVE. THIS GUARANTY IS DATED MARCH 16,2010.
THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT
OF A SEALED INSTRUMENT ACCORDING TO LAW.
GUARANTO
X (Seal)
Gerald L. Stake
U9FR PRO L4newp,Vx.5.46.00.00]Cop,. R",n<1--S4W—.Inc.1997,3010. All Rq R",1— PA T:1wN"pp,\CFlIL-20,PC TR 14143 PR 13
I Ex
PROMISSORY NOTE
PrtttCipal Lo�l11Jt8 !ll€aturity LoAt1 NO rant£otf TF flffiGer trt+afS
$8 OOt3',00 02 09-2011 48 01 2044 REW
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item
Any item above containing""'"has been omitted due to text length limitations.
Borrower: Stake Enterprises,Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle,PA 17013 Commercial Services Department
20 South Main Street
P.0.Box 6010
Chambersburg,PA 17201-6010
(717)264-6116
Principal Amount: $8,000.00 Date of Note: February 1, 2011
PROMISE TO PAY. Stake Enterprises, Inc. ("Borrower") promises to pay to Farmers and Merchants Trust Company of Chambersburg
("Lender"),or order,in lawful money of the United States of America,the principal amount of Eight Thousand&00/100 Dollars ($8,000.00),
together with interest on the unpaid principal balance from February 1, 2011, calculated as described in the "INTEREST CALCULATION
METHOD"paragraph using an interest rate of 10.000%per annum based on a year of 360 days,until paid in full. The interest rate may change
under the terms and conditions of the"INTEREST AFTER DEFAULT"section.
PAYMENT. Borrower will pay this loan in one principal payment of$8,000.00 plus interest on August 1, 2011. This payment due on August
1, 2011,will be for all principal and all accrued interest not yet paid. In addition, Borrower will pay regular monthly payments of all accrued
unpaid interest due as of each payment date,beginning March 1, 2011, with all subsequent interest payments to be due on the same day of
each month after that. Unless otherwise agreed or required by applicable law,payments will be applied first to any unpaid collection costs;then
to any late charges;then to any accrued unpaid interest;and then to principal. Borrower will pay Lender at Lender's address shown above or at
such other place as Lender may designate in writing.
INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/360 basis;that is, by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is
outstanding. All interest payable under this Note is computed using this method.
PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be
subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the
foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not,unless agreed
to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule, Rather, early
payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or
similar language. If Borrower sends such a payment,Lender may accept it without losing any of Lender's rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check
or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other
conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Farmers and Merchants Trust Company of
Chambersburg,P.0.Box 6010 Chambersburg,PA 17201-6010,
LATE CHARGE. If a payment is 16 days or more late, Borrower will be charged 6.000% of the unpaid portion of the regularly scheduled
payment.
INTEREST AFTER DEFAULT. Upon default,including failure to pay upon final maturity,the interest rate on this Note shall be increased by 2.000
percentage points. If judgment is entered in connection with this Note,interest will continue to accrue after the date of judgment at the rate in
effect at the time judgment is entered. However,in no event will the interest rate exceed the maximum interest rate limitations under applicable
law.
DEFAULT. Each of the following shall constitute an event of default("Event of Default")under this Note:
Payment Default. Borrower fails to make any payment when due under this Note.
Other Defaults. Borrower fails to comply with or to perform any other term,obligation, covenant or condition contained in this Note or in
any of the related documents or to comply with or to perform any term,obligation,covenant or condition contained in any other agreement
between Lender and Borrower.
Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or
sales agreement,or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or
Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.
False Statements. Any warranty,representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this
Note or the related documents is false or misleading in any material respect,either now or at the time made or furnished or becomes false
or misleading at any time thereafter.
Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a
receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.
Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan.
This includes a garnishment of any of Borrower's accounts, including deposit accounts,with Lender. However, this Event of Default shall
not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or
forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or
a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate
reserve or bond for the dispute.
Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any
Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.
Change In Ownership. Any change in ownership of twenty-five percent(25%)or more of the common stock of Borrower.
Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or
performance of this Note is impaired.
Insecurity. Lender in good faith believes itself insecure.
Cure Provisions. If any default,other than a default in payment is curable and if Borrower has not been given a notice of a breach of the
same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written notice to
Borrower demanding cure of such default: (1) cures the default within fifteen 05)days;or (2) if the cure requires more than fifteen(15)
days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter
continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.
LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal
balance under this Note and all accrued unpaid interest immediately due,and then Borrower will pay that amount.
ATTORNEYS' FEES;EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay
Lender that amount. This includes,subject to any limits under applicable law, Lender's reasonable attorneys'fees and Lender's legal expenses,
whether or not there is a lawsuit, including reasonable attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunctionl,and appeals. If not prohibited by applicable law,Borrower also will pay any court costs, in addition to
all other sums provided by law.
JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action,proceeding,or counterclaim brought by either Lender
or Borrower against the other.
GOVERNING LAW. This Note will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of
the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been accepted by Lender in the
Commonwealth of Pennsylvania.
CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Franklin County,
PROMISSORY NOTE
(Continued) Page 2
Commonwealth of Pennsylvania.
DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower's loan and the check or
preauthorized charge with which Borrower pays is later dishonored.
RIGHT OF SETOFF. To the extent permitted by applicable law,Lender reserves a right of setoff in all Borrower's accounts with Lender(whether
checking,savings,or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be prohibited by
law. Borrower authorizes Lender,to the extent permitted by applicable law,to charge or setoff all sums owing on the indebtedness against any
and all such accounts,and,at Lender's option,to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff
rights provided in this paragraph.
SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives,
successors and assigns,and shall inure to the benefit of Lender and its successors and assigns.
GENERAL PROVISIONS. If any part of this Note cannot be enforced,this fact will not affect the rest of the Note. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs,guarantees or endorses
this Note,to the extent allowed by law,waive presentment,demand for payment,and notice of dishonor. Upon any change in the terms of this
Note, and unless otherwise expressly stated in writing, no party who signs this Note,whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time)this
loan or release any party or guarantor or collateral;or impair,fail to realize upon or perfect Lender's security interest in the collateral;and take
any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify
this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note
are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any
other provisions of this Note.
CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY-COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME
FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT
AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST,LATE CHARGES AND ANY AND
ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS
OF SUIT,AND AN ATTORNEY'S COMMISSION OF TEN PERCENT(10%)OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR
COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR
MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL
BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE
EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY,BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN
FULL OF ALL AMOUNTS DUE UNDER THIS NOTE, BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A
HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER
SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN
REPRESENTED BY INDEPENDENT LEGAL COUNSEL.
PRIOR TO SIGNING THIS NOTE,BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE
TERMS OF THE NOTE.
BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.
THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A
SEALED INSTRUMENT ACCORDING TO LAW.
BORROWER:
STAKE ENTE RISES,INC.
By: Stake, (Seal)
erald L.Stnterprises,Inc.
LENDER:
FARMERS AND MERCHANTS TRUST COMPANY OF CHAMBERSBURG
X '
Brian L.Weikert,Vice President
459.——I—vn.6.59.10.003 Cove.-1—19eluRen,,—1997.7011. Alq,R R�T.1xnpR,l-1D70.RC 1A—7 RR a0
DISCLOSURE FOR CONFESSION OF JUDGMENT
Princlpat Lt11 Date h!#auraty Loan No I~al[1 coil Aortr#L:: , r . int€fiats
$8.QQ`Q fl .:` Q� 1 2Q`71 Q8 X071 g�Ml
References in the boxes above are for Lender's use only and do not limit the applicability
lif
this document Any item above containing has been omitted due totexttlength limitations.
o any particular loan or item.
Borrower: Stake Enterprises, Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle, PA 17013 Commercial Services Department
20 South Main Street
P. 0. Box 6010
Chambersburg, PA 17201-6010
Declarant: Gerald L. Stake (717) 264-6116
142 East Louther Street
Carlisle, PA 17013
DISCLOSURE FOR CONFESSION OF JUDGMENT
I AM EXECUTING, THIS S� DAY OF .Frt 20 f I , A GUARANTY FOR AN UNLIMITED AMOUNT.
A. I UNDERSTAND THAT THE GUARANTY CONTAINS A�CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER
JUDGMENT AGAINST ME IN COURT, AFTER A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT
OFFERING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE
OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF ANY JUDGMENT OR OTHER CLAIMS THAT
LENDER MAY ASSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE
RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND 1 EXPRESSLY AGREE AND CONSENT TO
LENDER'S ENTERING JUDGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION.
INITIALS:
B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST ME WITHOUT ADVANCE
NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY ALSO CONTAINS LANGUAGE THAT WOULD
PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO EXECUTE ON THE
JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL
OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE
AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTELLIGENTLY AND
VOLUNTARILY WAIVING THESE RIGHTS, AND I EXPRESSLY AGREE AND CONSENT TO LENDER'S IMMEDIATELY EXECUTING ON THE
JUDGMENT IN ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING ME ANY ADVANCE NOTICE.
INITIALS: G
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 GUARANTY.
2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY
TO MY ATTENTION.
D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000; THAT THE BLANKS IN THIS DISCLOSURE WERE FILLED IN WHEN I INITIALED
AND SIGNED IT;AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING.
THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE
EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
DECLARANT:
X /! v (Seal)
G raid L. Stake
LASER PRO Lantling,Vni 5.57.10.003 Cop,.Ha,lentl Inc.1997.2011, All P.ighl,R—,—, PA Tj—aap1lCFllLPL1D70.FC TR,I4707 PR n0
DISCLOSURE FOR CONFESSION OF JUDGMENT
.:.:....................
� LdBti♦#]�#e ; 11l#a�uri�y.:.• ;:: Lodi',No:,;:.:':::. :::';:.�afE.;r: ,:,. .. .
;:; �BQ.OU OF3>' �2�1 2.011 X38 Q1 �il't7
��`otl /�c�oLtr�f Qf Icer In�t��#s
References in the boxes above are for Lender's use only and do not limit the applicability of this document to an BST .
Any item above containing '***" has been omitted due to text length limitations. y particular loan or item.
Declarant: Stake Enterprises, Inc.
300 East High Street Lender: Farmers and Merchants Trust Company of
Carlisle, PA 17013 Chambersburg
Commercial Services Department
20 South Main Street
P. 0. Box 6010
Chambersburg, PA 17201-6010
(717) 264-6116
DISCLOSURE FOR CONFESSION OF JUDGMENT
THE UNDERSIGNED IS EXECUTING ON BEHALF OF DECLARANT, THIS / Jt
PROMISSORY NOTE FOR $8,000.00 OBLIGATING DECLARANT TO REPAY THAT AMOUNT. OF �'Q�r,"l,� 20 A
A. THE UNDERSIGNED UNDERSTANDS THAT THE NOTE CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT
LENDER TO ENTER JUDGMENT AGAINST DECLARANT IN COURT, AFTER A DEFAULT ON THE NOTE, WITHOUT ADVANCE NOTICE TO
DECLARANT AND WITHOUT OFFERING DECLARANT AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING
THE NOTE, BEING FULLY AWARE OF DECLARANT'S RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VALIDITY OF
ANY JUDGMENT OR OTHER CLAIMS THAT LENDER MAY ASSERT AGAINST DECLARANT UNDER THE NOTE, THE UNDERSIGNED, ON
BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY, AND VOLUNTARILY WAIVING THESE RIGHTS, INCLUDING ANY RIGHT TO
ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S ENTERING
JUDGMENT A A{.INS DECLARANT BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION.
INITIALS: .,
B. THE UNDERSIGNED FURTHER UNDERSTANDS THAT IN ADDITION TO GIVING LENDER THE RIGHT TO ENTER JUDGMENT AGAINST
DECLARANT WITHOUT ADVANCE NOTICE OR A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE NOTE ALSO CONTAINS
LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, AGAIN WITHOUT EITHER ADVANCE NOTICE OR A HEARING, TO
EXECUTE ON THE JUDGMENT BY FORECLOSING UPON, ATTACHING, LEVYING ON, TAKING POSSESSION OF OR OTHERWISE SEIZING
DECLARANT'S PROPERTY, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT. IN EXECUTING THE NOTE, BEING FULLY AWARE OF
DECLARANT'S RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT IS ENTERED AND BEFORE EXECUTION ON THE
JUDGMENT, THE UNDERSIGNED, ON BEHALF OF THE DECLARANT, IS KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY WAIVING THESE
RIGHTS, AND THE UNDERSIGNED EXPRESSLY AGREES AND CONSENTS TO LENDER'S IMMEDIATELY EXECUTING ON THE JUDGMENT IN
ANY MANNER PERMITTED BY APPLICABLE STATE AND FEDERAL LAW, WITHOUT GIVING DECLARANT ANY ADVANCE NOTICE.
INITIALS: G.
C. AFTER HAVING READ AND DETERMINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, BY INITIALING EACH
STATEMENT THAT APPLIES, THE UNDERSIGNED REPRESENTS THAT:
INITIALS
1. DECLARANT WAS REPRESENTED BY DECLARANT'S OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE
NOTE.
2. A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THE CONFESSION OF JUDGMENT PROVISION IN TH
DECLARANT'S ATTENTION. E NOTE TO
THIS DISCLOSURE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS DISCLOSURE IS AND SHALL CONSTITUTE AND HAVE THE
EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW.
DECLARANT:
STAKE ENTE ISES, INC.
By:
erald L. Stake, Preside (Seal)
e Enterprises, Inc.
lA$Efl PRO LenCnq,Ve.5.57.10.003 COP,.RerlenE Fmencral Solulans.Inc.1997,2011 All flghls Res—d. PA T:twinappsl
CFRLPL\070.fC TR,14707 PR40
EXHIBIT D
COMMERCIAL GUARANTY
Prmglpal Loan DBt� Matunty Loan Ili : Call 7 Coil: /at COurtf OtflCer Tntttais::;
References in the boxes above are for Lender's use only and do not limit the a)N, ,�,,,,y�, ,,,document to an
Any item above containingy particular loan or item,
"""'has been omitted due to text length limitations.
Borrower: Stake Enterprises,Inc. Lender: Farmers and Merchants Trust Company of
300 East High Street Chambersburg
Carlisle,PA 17013 Commercial Services Department
20 South Main Street
P.O.Box 6010
Chambersburg,PA 17201-6010
Guarantor: Gerald L.Stake (717)264-6116
142 East Louther Street
Carlisle,PA 17013
CONTINUING GUARANTEE OF PAYMENT AND PERFORMANCE. For good and valuable consideration,Guarantor absolutely and unconditionally
guarantees full and punctual payment and satisfaction of the Indebtedness of Borrower to Lender, and the performance and discharge of all
Borrower's obligations under the Note and the Related Documents. This is a guaranty of payment and performance and not of collection, so
Lender can enforce this Guaranty against Guarantor even when Lender has not exhausted Lender's remedies against anyone else obligated to
pay the Indebtedness or against any collateral securing the Indebtedness,this Guaranty or any other guaranty of the Indebtedness. Guarantor
will make any payments to Lender or its order,on demand,in legal tender of the United States of America,in same-day funds,without set-off or
deduction or counterclaim, and will otherwise perform Borrower's obligations under the Note and Related Documents. Under this Guaranty,
Guarantor's liability is unlimited and Guarantor's obligations are continuing.
INDEBTEDNESS. The word"Indebtedness"as used in this Guaranty means all of the principal amount outstanding from time to time and at any
one or more times, accrued unpaid interest thereon and all collection costs and legal expenses related thereto permitted by law, reasonable
attorneys' fees,arising from any and all debts, liabilities and obligations of every nature or form, now existing or hereafter arising or acquired,
that Borrower individually or collectively or interchangeably with others,owes or will owe Lender. "Indebtedness" includes, without limitation,
loans, advances, debts, overdraft indebtedness, credit card indebtedness, lease obligations, liabilities and obligations under any interest rate
protection agreements or foreign currency exchange agreements or commodity price protection agreements, other obligations, and liabilities of
Borrower,and any present or future judgments against Borrower,future advances,loans or transactions that renew,extend,modify,refinance,
consolidate or substitute these debts, liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by their
terms or acceleration;absolute or contingent;liquidated or unliquidated;determined or undetermined;direct or indirect;primary or secondary in
nature or arising from a guaranty or surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or
non-negotiable instrument or writing; originated by Lender or another or others; barred or unenforceable against Borrower for any reason
whatsoever;for any transactions that may be voidable for any reason(such as infancy, insanity, ultra vires or otherwise); and originated then
reduced or extinguished and then afterwards increased or reinstated.
If Lender presently holds one or more guaranties,or hereafter receives additional guaranties from Guarantor, Lender's rights under all guaranties
shall be cumulative. This Guaranty shall not(unless specifically provided below to the contrary)affect or invalidate any such other guaranties.
Guarantor's liability will be Guarantor's aggregate liability under the terms of this Guaranty and any such other unterminated guaranties.
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 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 effect when received by Lender without the necessity of any acceptance by Lender,or any
notice to Guarantor or to Borrower, and will continue in full force until all the Indebtedness incurred or contracted before receipt by Lender of
any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have
been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of
revocation must be mailed to Lender,by certified mail,at Lender's address listed above or such other place as Lender may designate in writing.
Written revocation of this Guaranty will apply only to new Indebtedness created after actual receipt by Lender of Guarantor's written revocation.
For this purpose and without limitation, the term "new Indebtedness" does not include the Indebtedness which at the time of notice of
revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. For this
purpose and without limitation, "new Indebtedness" does not include all or part of the Indebtedness that is: incurred by Borrower prior to
revocation;incurred under a commitment that became binding before revocation; any renewals,extensions, substitutions, and modifications of
the Indebtedness. This Guaranty shall bind Guarantor's estate as to the Indebtedness created both before and after Guarantor's death or
incapacity,regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing,Guarantor's executor or administrator or other
legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect.
Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this
Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this
Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of the Indebtedness covered by this Guaranty, and Guarantor
specifically acknowledges and agrees that reductions in the amount of the Indebtedness, even to zero dollars ($0.00), shall not constitute a
termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs, successors and assigns so long as any of the
Indebtedness remains unpaid and even though the Indebtedness may from time to time be zero dollars($0.00).
GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or
demand and without lessening Guarantor's liability under this Guaranty,from time to time: (A) prior to revocation as set forth above,to make
one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend
additional credit to Borrower; (B) to alter,compromise,renew,extend,accelerate,or otherwise change one or more times the time for payment
or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the
Indebtedness;extensions may be repeated and 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,enforce,waive,subordinate,fail or decide not to perfect, and release any such security, with
or without the substitution of new collateral; (D) to release,substitute,agree not to sue,or deal with any one or more of Borrower's sureties,
endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of
payments and credits shall be made on the Indebtedness; (F) to apply such security and direct the order or manner of sale thereof, including
without limitation,any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion
may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this
Guaranty in whole or in part.
GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or
agreements of any kind have been made to Guarantor which would limit or qualify in any way the terms of this Guaranty; (B) this Guaranty is
executed at Borrower's request and not at the request of Lender; (C) Guarantor has full power,right and authority to enter into this Guaranty;
(D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor
and do not result in a violation of any law,regulation,court decree or order applicable to Guarantor; (E) Guarantor has not and will not,without
the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of
Guarantor's assets,or any interest therein; (F) upon Lender's request,Guarantor will provide to Lender financial and credit information in form
acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to
Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial
information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent
financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (H)
no litigation,claim, investigation, administrative proceeding or similar action(including those for unpaid taxes) against Guarantor is pending or
threatened; (1) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established
adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to
keep adequately informed from such means of any facts,events,or circumstances which might in any way affect Guarantor's risks under this
Guaranty,and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by
Lender in the course of its relationship with Borrower.
GUARANTOR'S FINANCIAL STATEMENTS. Guarantor agrees to furnish Lender with the following:
Annual Statements. As soon as available, but in no event later than one-hundred-twenty (120) days after the end of each fiscal year,
COMMERCIAL GUARANTY
(Continued) Page 2
Guarantor's balance sheet and income statement for the year ended,prepared by Guarantor.
Tax Returns. As soon as available, but in no event later than thirty(30)days after the applicable filing date for the tax reporting period
ended,Federal and other governmental tax returns,prepared by Guarantor.
All financial reports required to be provided under this Guaranty shall be prepared in accordance with GAAP,applied on a consistent basis,and
certified by Guarantor as being true and correct.
GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending
money or to extend other credit to Borrower; (B) to make any presentment,protest, demand, or notice of any kind, including notice of any
nonpayment of the Indebtedness or of any nonpayment related to any collateral,or notice of any action or nonaction on the part of Borrower,
Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional
loans or obligations; IC) to resort for payment or to proceed directly or at once against any person,including Borrower or any other guarantor;
(D) to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor,or any other person; (EI to give
notice of the terms, time, and place of any public or private sale of personal property security held by Lender from Borrower or to comply with
any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power;or (G) to commit any
act or omission of any kind,or at any time,with respect to any matter whatsoever.
Guarantor also waives any and all rights or defenses based on suretyship or impairment of collateral including, but not limited to, any rights or
defenses arising by reason of (A) any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any
action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action,
either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects
Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of
rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of
Borrower,of any other guarantor,or of any other person,or by reason of the cessation of Borrower's liability from any cause whatsoever,other
than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified
impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against
Guarantor is commenced,there is outstanding Indebtedness which is not barred by any applicable statute of limitations;or (F) any defenses
given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower,
whether voluntarily or otherwise,or by any third party,on the Indebtedness and thereafter Lender is forced to remit the amount of that payment
to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the
Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty.
Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any
claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the
Borrower,the Guarantor,or both.
GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is
made with Guarantor's full knowledge of its significance and consequences and that,under the circumstances,the waivers are reasonable and
not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy,such waiver shall be
effective only to the extent permitted by law or public policy.
RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else and all accounts
Guarantor may open in the future. However,this does not include any IRA or Keogh accounts,or any trust accounts for which setoff would be
prohibited by law. Guarantor authorizes Lender,to the extent permitted by applicable law,to hold these funds if there is a default,and Lender
may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty.
SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness, whether now existing or hereafter
created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower,whether or not Borrower becomes
insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any
claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower,
through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to
the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness.
Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in
bankruptcy of Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in
legal tender of the Indebtedness. If Lender so requests,any notes or credit agreements now or hereafter evidencing any debts or obligations of
Borrower to Guarantor shall be marked with a 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 time to time to file financing statements and continuation statements
and to execute documents and to take such other actions as Lender deems necessary or appropriate to perfect,preserve and enforce its rights
under this Guaranty.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty:
Amendments. This Guaranty,together with any Related Documents,constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.
Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable
attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay
someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses
include Lender's reasonable attorneys' fees and legal expenses whether or not there is a lawsuit,including reasonable attorneys' fees and
legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any
anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the
court.
Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the
provisions of this Guaranty.
Governing Law. This Guaranty will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the
laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions.
Choice of Venue. If there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Franklin
County,Commonwealth of Pennsylvania.
Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the
opportunity to be advised by Guarantor's attorney with respect to this Guaranty;the Guaranty fully reflects Guarantor's intentions and parol
evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses,
claims,damages,and costs(including Lender's attorneys'fees)suffered or incurred by Lender as a result of any breach by Guarantor of the
warranties,representations and agreements of this paragraph.
Interpretation. In all cases where there is more than one Borrower or Guarantor,then all words used in this Guaranty in the singular shall
be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower
named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor"
respectively shall mean all and any one or more of them. The words"Guarantor," "Borrower,"and"Lender"include the heirs,successors,
assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced,that
fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the
provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of
Borrower or Guarantor are corporations,partnerships,limited liability companies,or similar entities,it is not necessary for Lender to inquire
into the powers of Borrower or Guarantor or of the officers,directors,partners,managers,or other agents acting or purporting to act on
their behalf,and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this
Guaranty.
Notices. Unless otherwise provided by applicable law,any notice required to be given under this Guaranty shall be given in writing, and,
except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimile (unless
otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United
States mail,as first class,certified or registered mail postage prepaid,directed to the addresses shown near the beginning of this Guaranty.
All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this
Guaranty entitled"DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written
notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor
agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law, if there is more
COMMERCIAL GUARANTY
(Continued) Page 3
than one Guarantor,any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors.
No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and
signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other
right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand
strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender,nor any course of dealing between
Lender and Guarantor,shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions.
Whenever the consent of Lender is required under this Guaranty,the granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in
the sole discretion of Lender.
Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor, and upon Guarantor's heirs, personal
representatives,successors,and assigns,and shall be enforceable by Lender and its successors and assigns.
Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Guarantor against the other.
DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically
stated to the contrary,all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms
used in the singular shall include the plural,and the plural shall include the singular,as the context may require. Words and terms not otherwise
defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code;
Borrower. The word "Borrower" means Stake Enterprises, Inc. and includes all co-signers and co-makers signing the Note and all their
successors and assigns.
GAAP. The word"GAAP"means generally accepted accounting principles.
Guarantor. The word "Guarantor"means everyone signing this Guaranty, including without limitation Gerald L. Slake, and in each case,
any signer's successors and assigns.
Guaranty. The word"Guaranty"means this guaranty from Guarantor to Lender.
Indebtedness. The word"Indebtedness"means Borrower's indebtedness to Lender as more particularly described in this Guaranty.
Lender. The word"Lender"means Farmers and Merchants Trust Company of Chambersburg,its successors and assigns.
Note. The word "Note" means and includes without limitation all of Borrower's promissory notes and/or credit agreements evidencing
Borrower's loan obligations in favor of Lender,together with all renewals of,extensions of,modifications of,refinancings of,consolidations
of and substitutions for promissory notes or credit agreements,
Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents,whether now or hereafter existing,executed in connection with the Indebtedness.
CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE
PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME
FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER
JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE
CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE
INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID
PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500)
ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY;AND FOR SO DOING,THIS 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 TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY.
GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH
CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF
JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL.
The lien arising from any judgment confessed or entered pursuant to the foregoing authority shall not extend to any of Guarantor's residential
real property as that term is defined in the Pennsylvania Act of January 30, 1974(Pa. Laws 13, No. 6), referred to as the Loan Interest and
Protection Law, as amended,and the holder of any judgment confessed or entered pursuant to the forgoing authority shall not, in enforcement
of any such judgment, execute, levy or otherwise proceed against any such residential real property; provided, however, that the lien of such
judgment shall extend to such residential real property and that the holder thereof shall be permitted to execute, levy or proceed against such
residential real property from and after the entry of a judgment as contemplated by Section 407 of such Loan Interest and Protection Law and
Rules 2981 to 2986 of the Pennsylvania Rules of Civil Procedure, or successor or similar statutes and rules. No limitation of lien or any
execution, levy or other enforcement contained in the immediately preceding sentence shall apply with respect to any judgment obtained other
than by the foregoing authority to confess or enter judgment.
EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS
TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND
DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH
IN THE SECTION TITLED "DURATION OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY
EFFECTIVE. THIS GUARANTY IS DATED FEBRUARY 1,2011.
THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT
OF A SEALED INSTRUMENT ACCORDING TO LAW.
GUARANTO/�.
X 1
Seal)
Gerald L.Stake (
uSfq PqO lman9.vv,.5.5].iO.W]Coni.".iva invne"a SeW,bna.p,e.�90>,EOiI. ♦qye,v pvae,vea. .Pp i, PPeKPnPt,f 30.PC iq,e)0)Pq-a0
i
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff NO.:
VS.
GERALD L. STAKE,an individual
Defendant
r VERIFICATION
t
William A. Pryor, Vice President, and duly authorized representatives of Farmers and Merchants
i
Trust Company of Chambersburg, deposes and says subject to the penalties of 18 Pa, C.S.A.
§4904 relating to unsworn falsification to authorities that the facts set forth in the foregoing
d g g
pleading are true and correct to his information and belief
Date: Ahz/fc ,:...,
William A. Prior
Vice President
[
€
f
}
E.
F
€
t
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION - w
COMPANY OF CHAMBERSBURG ,,
Plaintiff NO.:
VS.
GERALD L. STAKE, an individual �G� c .• e
Defendant CD
CERTIFICATION OF ADDRESS
I hereby certify that the address of the parties in the above action are as follows:
Address of Plaintiff:
20 South Main Street, Chambersburg, PA 17201
Address of Defendant:
142 E. Louther Street, Carlisle, PA 17013
Dethlefs-Py os Law Group, LLC
Darrel De s, Esquire
PA ID: 58805
Attorney for Plaintiff
2132 Market Street
Camp Hill, PA 17011
717-975-9446
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff ; NO.:
VS.
GERALD L. STAKE, an individual -o C"�� � r Y��!
Defendant
CDAFFIDAVIT OF NON-MILITARY SERVICE "y cn
COMMONWEALTH OF PENNSYLVANIA :
SS:
COUNTY OF CUMBERLAND ;
I, Darrel Dethlefs, Esquire, attorney for and authorized representative of Plaintiff,
Farmers and Merchants Trust Company of Chambersburg, hereby certify, subject to the penalties
of 18 Pa. C.S.A. §4904, that the Defendant, is not in the military service of the United States of
America to the best of my knowledge, information and belief.
Darrel Det , squire
SWORN TO AND SUBSCRIBED BEFORE ME THIS
8th day of September, 2014
1
i' COMMONWEALTH Of PENNSYLVANIA
Notarial Seat
CrPW!L Mahoney, Notary Publk
lic My c�om,nKs1 0 crew �+
March 20, 2018
Ml11KA ►t_ftVLVA01LA A5I0QAT70R to MOTAR[[S
My commission expires:
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff ; NO.. 5 3
r a
GERALD L. STAKE, an individual cs,
Defendant CONFESSED JUDGMENT
NOTICE OF DEFENDANT'S RIGHTS
TO: GERALD L. STAKE:
Please be advised that,pursuant to Pa. R.C.P. 236, you are hereby notified that, a
judgment in the amount of$70,129.13 with interest from the date of the filing of this action, on
the total of($61,170.73), at the simple rate of 4.500%per year, and on the total sum of
($8;958.40), at the simple rate of 10.000%, which computes to a current per diem of$8.91 per
day 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 THE JUDGMENT AND
PRESENT IT TO A JUDGE WITHIN THIRTY(30)DAYS AFTER THE DATE ON WHICH
THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT
HAVE A LAWYER OR CANNOT AFFORD ONE,GO TO OR TELEPHONE THE OFFICE SET
FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP:
lF ,
Cumberland County Bar Association
32 South Bedford Street
Carlisle,PA 17013
Telephone: 717-249-3166
Toll Free(in PA): 1-800-990-9108
Date: D BY:
Darrell . ethlefs, Esquire
Attorney Id.No.: 58805
2132 Market Street
Camp Hill, PA 17011
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
FARMERS AND MERCHANTS TRUST CIVIL DIVISION
COMPANY OF CHAMBERSBURG
Plaintiff : :
NO
vs.
GERALD L. STAKE, an individual
Defendant
NOTICE OF ORDER, DECREE OR JUDGMENT
TO: Defendant—GERALD L. STAKE
Your are hereby notified th t anrder, Decree or Judgment was entered in the
above-captioned proceeding on p
( ) A Copy of the Order or Decree is as follows:
Or
(X) The Judgment is as follows: $70,129.13
plus interest on the principal sum ($62,349.45) from September 10, 2014, at.the contractual rate,
plus additional late charges and additional attorneys' fees and costs.
Prothonotary
Darrell C. Dethlefs, Esquire
Dethlefs-Pykosh Law Group, LLC
2132 Market St, Camp Hill, PA 17011
(717) 975-9446
ddethlefs@aol.com
Supreme Court ID No. 58805
- THE PRO MONO rA
2014 NOV --6 AM f i 06
CUMBERLAND COUNTY
PENNSYLVANIA
FARMERS AND MERCHANTS TRUST :
COMPANY OF CHAMBERSBURG .
Plaintiff
vs.
GERALD L. STAKE, an individual
Defendant
•
•
•
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY,
PENNSYLVANIA
CIVIL ACTION
NO. 14-5345 Civil
PRAECIPE TO REINSTATE COMPLAINT
TO THE PROTHONOTARY:
Kindly reinstate the Complaint that was originally filed in the above -captioned
matter on September 10, 2014.
Date: lq(ii
Respectfully submitted,
Darrel . Dethlefs, Esq.
Dethlefs-Pykosh Law Group, LLC
2132 Market Street
Camp Hill, PA 17011
(717) 975-9446
ddethlefs@aol.com
Supreme Court ID No. 58805
/ rzspci
easi,
#3/3073
Ronny R Anderson
Sheriff
Jody S Smith
Chief Deputy
Richard W Stewart
Solicitor
SHERIFF'S OFFICE OF CUMBERLAND COUNTY
IF-iF PROTH13tiO 1i
OFF OF 7PF, $1.4ERif-T
201ti N,01117 PM 2: 59
CUMBERLAND COUNTY
PENNSYLVANIA
Farmers and Merchants Trust Company of Chambersburg
vs.
Gerald L Stake
Case Number
2014-5345
SHERIFF'S RETURN OF SERVICE
11/06/2014 09:22 PM - Deputy Shawn Gutshail, being duly sworn according to law, served the requested Complaint
in Confession of Judgment by "personally" handing a true copy to a person representing themselves to
be the Defendant, to wit: Gerald L Stake at 137 Mulberry Ave, Carlisle Bo gh, Carlisle, PA 17013.
G1 SHALL, DEPUTY
SHERIFF COST: $42.05 SO ANSWERS,
November 07, 2014 RONNY R ANDERSON, SHERIFF
(c) CouritySuito Shonif, 1"eloosoft, nc.