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HomeMy WebLinkAbout05-1939 1- COMMERCE BANKlHARRISBURG, N.A., Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. ROBERT L. PHAM and NAOMI PHAM, Defendants Docket No. 05)- j CJ J Cj ~ NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set fi rth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in wri ng with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered aga' st you by the court without further notice for any money claimed in the complaint or for any oth r claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LA WYE IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABL TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, P A 17013 (717) 249-3166 421828vl , COMMERCE BANKlHARRISBURG, N.A., Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. Docket No. 05 - jq39 (,v,J .---' je.. v !'l'\... ROBERT L. PHAM and NAOMI PHAM, Defendants COMPLAINT AND NOW, comes Plaintiff, COMMERCE BANK/ HARRISBURG, NA, b and through its counsel, Mette, Evans and Woodside, files this Complaint and avers the following: I. Plaintiff is Commerce Bank/Harrisburg, N.A., a national banking institution with offices at 100 Senate Avenue, Camp Hill, Pennsylvania 17001 (the "Bank"). 2. Defendants are Robert L. Pham and Naomi Pham, adult individuals residing at 210 W. Locust Street, Enola, Pennsylvania 17025 (collectively the "Guarantors"). 3. On March 3, 2000, Mani Caffe International, Inc. t/a Mani Caffe (the "Borrower"), upon information and belief a Pennsylvania business corporation with offices located at Camp Hill Shopping Mall, 32nd and Trindle Road, Camp Hill, P A 17011, executed d delivered to the Bank two (2) U.S. Small Business Administration Notes ("Note A" and "Note B" respectively; collectively "the Notes") evidencing the Borrower's obligation to pay the Ba the unpaid principal balance advanced by the Bank, plus interest and all other amount due. Tru and correct copies of the Notes are attached hereto as Exhibit "A" and Exhibit "B," respect vely, and made part hereof. 4. The Borrower granted the Bank a security interest in the property ("Collateral") described in two (2) Security Agreements ("Security Agreement A," and "Se urity Agreement B," respectively; collectively "the Security Agreements") to secure the paymen due under the Notes. True and correct copies of the Security Agreements are attached hereto as Exhibit "c" and Exhibit "D," respectively, and made part hereof. 5. The Bank advanced a sum of THIRTY THOUSAND DOLLARS ($30,000) to the Borrower under Note #A, and made available to the Borrower a revolving I ne of credit of THIRTY THOUSAND DOLLARS ($30,000) under Note B. 6. On March 3, 2000, each Guarantor executed and delivered to the Ba separate U.S. Small Business Administration Unconditional Guarantee guaranteeing payme Note A ("Guarantee AI," "Guarantee A2," collectively "Note A Guarantees"). True and co copies of the Note A Guarantees are attached hereto as Exhibits "E," and 'OF," respectively, a d made part hereof. 7. Pursuant to the Note A Guarantees, each Guarantor unconditionally guaranteed payment to the Bank of all amounts owing under the Note A, and obligates each Guarantor to pay all amounts due under Note A when the Bank makes a written demand for such payment from the Guarantors. , 8. On March 3, 2000, each Guarantor executed and delivered to the B a separate U.S. Small Business Administration Unconditional Guarantee guaranteeing payme Note B ("Guarantee BI," "Guarantee B2," collectively "Note B Guarantees"). True and co copies of the Note B Guarantees are attached as Exhibits "G" and "H," respectively, and m e part hereof. 9. Pursuant to the Note B Guarantees, each Guarantor unconditionally guaranteed payment to the Bank of all amounts owing under Note B, and obligates each Guarantor to pay all amounts due under Note B when the Bank makes a written demand for uch payment from the Guarantors. 10. Pursuant to the Notes, the Bank has the right to require immediate payment of all amounts owing under the Notes in the event of a Default as defined by the N es, without notice or demand, from any Borrower or Guarantors. II. The Borrower has defaulted under the terms of the Notes as follows: a. by the Borrower failing to pay the monthly installments of principal and interest due as required under the Notes, b. by the Borrower changing the name under which it does busine s without the prior written approval from the Bank as required under the Notes, c. by the Borrower failing to meet the requirements regarding the Collateral as specified in the Security Agreements, specifically, by the Borrower failing to maintain insurance on all Collateral as required, and by keeping the Collateral at a location hat was not approved in writing by the Bank. 12. The Bank, by written notice dated March 7,2005 demanded that the Guarantors make payment of all amounts owing under Note A by March 17,2005. A true a d correct copy of the Notice is attached hereto as Exhibit "I" and made part hereof. 13. The Bank, by written notice dated March 7, 2005 demanded that the Guarantors make payment of all amounts owing under Note B by March 17,2005. A true a d correct copy of the Notice is attached hereto as Exhibit" J" and made part hereof. 14. The Guarantors have failed to make payment as demanded by the Ba . 15. The total amount due under Note A, and therefore due by the Guarant rs pursuant to Guarantee Al and A2, as of April 5, 2005 is Five Thousand Five Hundred Fifty- Ive and 22/1 OOths ($5,555.22), plus variable interest as determined according to the terms ofN e A, which variable rate is currently 6.75 percent ( 6.75 %) per annum, together with late fees, attorneys' fees and costs incurred after April 5, 2005. 16. The total amount due under Note B, and therefore due by the Guarant s pursuant to Guarantee B I and B2, as of April 5, 2005 is Twenty-Two Thousand One Hundre Sixty-Four and 01/1 OOths ($22, 164.0 I), plus variable interest as determined according to th terms of Note B, which variable rate is currently 6.75 percent (6.75 %) per annum, togethe with late fees, attorneys' fees and costs incurred after April 5, 2005 and all costs of this action. WHEREFORE, Plaintiff Commerce Bank/Harrisburg, N.A., respectfully re that Judgment be entered in its favor and against Defendants ROBERT L. PHAM and NA I PHAM, in the amount of Twenty-seven Thousand Seven Hundred Nineteen 23/IOOths ($27,719.23), plus interest accruing at the variable rates as determined by the terms of the involved Notes, on and after April 5, 2005, late fees, attorneys' fees and costs incurred by t e Plaintiff, together with such other and further relief this court deems just and proper. Respectively submitted, ~!!A~ Matthew E. Hamlin, Esquire Sup. Ct.1D No. 86142 '1 Ja H. McElwain Jr, Esquire Su . Ct. J.D. No. 93304 Mette, Evans & Woodside 3401 North Front Street P.O. Box 5950 Harrisburg, P A 17110-0950 (717) 232-5000 Attorneys for Commerce BanklHarrisburg, N.A 420503vl ~,C%.'X' . . U.S. Small B~S~e;~dminirirE SBA Loan # PLP 360-243-4007 SBA Loan Name Mani Caffe International, Inc. Va Mani Caffe Date Loan Amount 'J- :r 0D 30,000.00 Interest Rate NYP + 1.00% Initial Rate 9.75% Borrower Man; Caffe International, Inc. Va Mani Caffe Operating Company N/A Lender Commerce Bank/Harrisburg, NA 1. PROMISE TO PAY: In return for the Loan, Borrower promises to pay to the order of Lender the amount of E. .A Th i rty thousand N 0/1 00 *************"'**1t**************..****************************************1<**************** allars, interest on the unpaid principal balance, and all other amounts required by this Note. 2. DEFINITIONS: "Collateral" means any property taken as security for payment ofthis Note or any guarantee of this Not. "Guarantor" means each person or entity that signs a guarantee of payment of this Note. "Loan" means the loan evidenced by this Note. "Loan Documents" means the documents related to this loan signed by Borrower, any Guarantor, or an one who pledges collateral. '<SBA" means the Small Business Administration, an Agency of the United States of America. SBA Form 147 (10/22/98) Previous editions obsolete Page 1/6 . 3. PA YNffiNT TERNlS: Borrower mllst make all payments at the place Lender designates. The payment terms for this Note aT : 1. Maturity: This Note will mature in 7 years from date of Note. 2. Repayment Terms: The interest rate on this Note will fluctuate. The initial interest rate is 9.75% per year. Thi initial rate is the prime rate on the date SBA received the loan application, plus 1.00%. Borrower must pay a total of 3 payments of interest only on the disbursed principal balanc beginning two months from the month this Note is dated and every month thereafter; payments mus be made on he first calendar day in the months they are due. Borrower must pay principal and interest payments of $512.00 every month, beginning fOLr months from the month this Note is dated; payments must be made on the first calendar day in th months they are due. Lender will apply each installment payment first to pay interest accrued to the day Lender ceives the payment, then to bring principal current, then to pay any late fees, and will apply any rema! ing balance to reduce principal. Lender may adjust the interest rate for the first time no earlier than the first calendar day of the first month after initial disbursement. The interest rate will then be adjusted eaph calendar qua er (the "change period"). The "Prime Rate" is the prime rate in effect on the first business day of the month in which change occurs, as published in the Wall Street Journal on the next business day. The adjusted interest rate will be 1.00% above the Prime Rate. Lender will adjust the intere t rate on the first calendar day of each change period. The change in interest rate is effective on that day whether or not Lender gives Borrower notice of the change. Lender must adjust the payment amount at least annually as needed to amortize principal a' er the remaining term of the note. If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate be ames fixed at the rate in effect at the time of the earliest uncured payment default. If there is no un~ured payment default, the rate becomes fixed at the rate in effect at the time of purchase. All remaining principal and accrued interest is due and payable 7 years from date of Note. Late Charge: If a payment on this Note is more than 10 days late, Lender may charge Barra er a late fee of up to 5% of the unpaid portion of the regularly scheduled payment. S8A Form 147 (10/22/98) PrevIous editions obsolete P ge 2/6 4. RlGHTTOPREPAY: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the unpaid principal bal ce at any time without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the seconda market, Borrower must: A. Give Lender written notice; B. Pay all accrued interest; and C. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an a ount equal to 21 days' interest from the date lender receives the notice, less any interest accrued during the 21 days nd paid under subparagraph B. If Borrower does not prepay within 60 days from the date Lender receives the notice, Borrower must gi e Lender a new notice, 5. DEFAULT: A. B. ~c. J D. E. F. G. H. I. J. JK. IL. Borrower is in default under this Note If Borrower does not make a payment when due under this Note, r if Borrower or Operating Company: Fails to do anything required by this Note and other Loan Documents; Defaults on any other loan with Lender; Does not preserve, or account to Lender's satisfaction for, any of the Collateral or its proceeds; , Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or BA; Makes, or anyone acting on tbeir behalf malees, a materially false or misleading representation to Len er or SBA; Defaults on any loan or agreement with another creditor, if Lender believes the default may materiall affect Borrower's ability to pay this Note; Fails to pay any taxes when due; Becomes the subject of a proceeding under any bankruptcy or insolvency law; Has a receiver or liquidator appointed for any part of their business or property; Makes an assignment for the benefit of creditors; Has any adverse change in financial condition or business operation that Lender believes may material y affect Borrower's ability to pay this Note; Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lend r's prior written consent; or M. Becomes tbe subject of a civil or criminal action that Lender believes may materially affect Borrower's bility to pay this Note. 6. LENDER'S RIGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, Lender may: A. Require immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. File suit and obtain judgment: D. Take possession of any Collateral; or E. Sell, lease, or otberwise dispose of, any Collateral at public or private sale, with or without advertisement seA Form 147 (10f22f98) Previous editions obsolete Page 31G L 7, LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A, Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses; B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may inclu e payments for property (lL'{es, prior liens, insurance, appraisals, environmental remediation costs, and reasona Ie attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrow r or add the expenses to the principal balance; C. Release anyone obligated to pay this Note; D. Compromise, release, renew, extend or substitute any of the Collateral; and E. Take any action necessary to protect the Collateral or collect amounts owing on this Note, 8. WHEN FEDERAL LAW APPLIES: When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA re ulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, reclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from sta e or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any lac or state law to deny any obligation, defeat any claim of SBA, or preempt federal law, 9, SUCCESSORS AND ASSIGNS: Under this Note, Borrower and Operating Company include the successors of each, and Lender includes i s successors and assigns. 10. GENERAL PROVISIONS: A. All individuals and entities signing this Note are jointly and severally liable. B. Borrower waives all suretyship defenses. C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and to e able Lender to acquire, perfect, or maintain Lender's liens on Collateral. D, Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E, Borrower may not use an oral statement of Lender or SBA to contradict or alter the written tenus of thi Note. F. If any part of this Note is unenforceable, all other parts remain in effect. G, To the extent allowed by law, Borrower waives aU demands and notices in connection with this Note, in luding presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon a claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; imp ired Collateral; or did not obtain the fair market value of CoUateral at a sale, SBA Form 147 (10/22/98) Previous editions obsolete age 4/6 . 11. STATE-SPECIFIC PROVISIC ,.:>: . Borrower hereby irrevocably authorizes and empowers any attorney or the attorney or the prothonota Iv or clerk of any court in the Commonwealth of Pennsylvania, or elsewhere, to appear at any time for Borrower Iter a default under this Note, and with or without complaint filed, as of any term, confess or enter judgment against borrower for the entire principal balance of this Note, all accrued interest, late charges, and any and I amounts expended or advanced by Lender relating to any collateral securing this Note together with interest 0 such amounts, together with costs of suit, and an attorney's commission of ten percent (10%) of the unpaic principal balance and accrued interest for collection, but in any event not less than five hundred dollars ($500) n which 'udgement or judgements one or more executions may issue immediately; and for so doing, this Note br a copy of this Note verified by affidavit shall be sufficient warrant. The authority granted in this Note to confess udgement against Borrower shall not be exhausted by any exercise of that authority, but shall continue from tim 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, except any no ice and/or hearing required under applicable law with respect to execution of the judgment, and states that eithe a representative of Lender specifically called this confession of judgment provision to Borrower's attenti n or Borrower has been represented by independent legal counsel. The lien ar"lsing from any judgment co fessed or entered pursuant to the foregoing authority shall not extend to any of Borrower's residential real prope y as that term is defined in the Pennsylvania Act of January 30, 1974 (PA Laws 13, No.6), referred to as the 10 n interest and protection law, as amended, and the holder of any judgment confessed or entered pursuant to thE foregoing authority shall not, in enforcement of any such judgment execute, levy or otherwise proceed against a y such residential real property; provided, however, that the lien of such judgment shall extend to such reside tial real property and that the holder thereof shall be permitted to execute, levy, or proceed against such resid ntial real property from and alter the entry of a judgment as contemplated by Section 407 of such loan interest a d protection law and Rules 2981 to 2986 of the Pennsylvania Rules of Civil Procedure, or successor or , milar statutes and rules. No limitation of lien or any execution, levy or other enforcement contained in the iIT l1ediately preceding sentence shall apply with respect to any jUdgment obtained other than by the foregoing auth rity to confess or enter judgment SBA Form 147 (10f22/98} PrevioLls editions obsolete Page 516 12. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligated under this Note as Borrower. 03 03- Robert L Pham, President SBA Farm 147 (10122/98) Previous editions obsolete ge 6/6 !\)_L_ST~TE" lCGAl 8ll0_222_Dorc cD" ~[C"CL. cO f')(l..: 10: r e, ~.iD U.S. Small Business Administrati n NOTE JIL I COP) SBA Loan # EXP 360-953-4005 SBA Loan Name Mani Caffe International, Inc. tla Man; Caffe Date tJI A l(.~ 1-\ :>, d-.fJOO Loan Amount 30,000.00 Interest Rate NYP + 1.00% Initial Rate 9.75% Mani Caffe International, Inc. tla Man! Caffe Borrower Operating N/A Company Lender Commerce Bank/Harrisburg, NA 1 PROMISE TO PAY: In retum for tbe Loan, Borrower promises to pay to the order of Lender the amount of Thi rty thousand NO/1 00 ****************"'*********"'*****1<**********"'*************"'*******...****..**************** .. ollars, interest on the unpaid principal balance, and all other amounts required by this Note. Z. DEFINITIONS: "Collateral" means any property taken as security for payment of this Note or any guarantee of this N ote. "Guarantor" means each person or entity that signs a guarantee of payment of this Note. "Loan" means the loan evidenced by this Note. "Loan Documents" means the documents related to this loan signed by Borrower, any Guarantor, or anyo who pledges collateral. "oSSA" means the Small Business Administration, an Agency of the United States of America. SBA Forn,; 147 (10/2219B) Previous editions obsolete P e 1/6 \ 3. PAYMENT TERMS: Borrower must make ail payments at the place Lender designates. The payment terms for this Note are: a) Maturity: This Note will mature five (5) years from date of Note. b) Repayment Terms: This loan is a revolving line of credit. Borrower may make advances on the line of c ,dit up to the maximum thereof from time to time. Each advance shall be in an amount not less H- In $500.00 and is subject to Borrower's credit limit. lender reserves the right to decline advances basE :J on changes in Borrower's financial condition. Borrower may not make any advances after an event f default. Borrower will pay this loan on demand, or if no demand is made, in one payment of al outstanding principal plus all accrued unpaid interest in five (5) years from date of Note. The Note will mature in five (5) years from date of Note. In addition, Borrower will pay regularly monthly payments of accrued unpaid interest based upon the principal balance outstanding from time to time beginni g the first day of the second month from the date of the Note. All subsequent monthly interest paymE rts are due on the first day of each month thereafter. The interest rate on this Note will fluctuate. The initial rate of interest will be 9.75%. Thi initial interest rate is the prime rate on the date the SBA received the loan application, plus 1.0 %. , Lender will apply each installment payment first to pay interest accrued to the day Lende receives the payment, then to pay any late fees, and will apply any remaining balance to reduce princi Ie. Borrower agrees that if a default occurs on this Note or any other outstanding SBA or SBP guaranteed loan, lender has the option to make this Note and such other loans immediately due and ayable. The adjusted interest rate will be 1.00% above the Prime rate. Lender may adjust the inter st rate for the first time on the first day of the calendar quarter following the date of Note and on the fi 5t day of each calendar quarter thereafter. The change in interest rate is effective on that day wheth r or not lender gives Borrower notice of the change. The "Prime Rate" is the prime rate published in the Wall Street Journal, in effect on the first usiness day of the month in which a change occurs. If SBA purchases the guaranteed portion of the unpaid principal balance, the interest rate bee pmes fixed at the rate in effect at the time of the earliest uncured payment default. If there is no un ured payment default, the rate becomes fixed at the rate in effect at the time of purchase. Late Charge: If a payment on this Note is more than tem (10) days late, Lender may charge Be rrower a late fee of up to 5% of the unpaid portion of the regularly scheduled payment. Lender computes interest on a 30/360 day basis. SBA Form 147 {10/22198} Previous editions obsolete Page 6 4. RlGHT TO PREPAY: Borrower may prepay this Note. Borrower may prepay 20 percent or less of the cmpaid principal b ance at any time without notice. If Borrower prepays more than 20 percent and the Loan has been sold on the secon ary market, Borrower must: A. Give Lender written notice; B. Pay all accrued interest; and C. If the prepayment is received less than 21 days from the date Lender receives the notice, pay an ount equal to 21 days' interest from the date lender receives the notice, less any interest accrued during the 21 da s and paid under subparagraph B. If Borrower does not prepay within 60 days from the date Lender receives the notice, Borrower must 've Lender a new notice. 5. DEFAULT: Borrower is in default under this Note if Borrower does not make a payment when due under this Note or if Borrower or Operating Company: A. Fails to do anything required by this Note and other Loan Documents; B. Defaults on any other loan with Lender; C. Does not preserve, or account to Lender's satisfaction for, any ofthe Collateral or its proceeds; D. Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or BA; E. Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Len er or SBA; F. Defaults on any loan or agreement with another creditor, if Lender believes the default may material! affect Borrower's ability to pay this Note; G. Fails to pay any taxes when due; H. Becomes the subject of a proceeding under any bankruptcy or insolvency law; l. Has a receiver or liquidator appointed for any part of their business or property; J. Makes an assignment for the benefit of creditors; K. Has any adverse change in financial condition or business operation that Lender believes may material! affect Borrower's ability to pay this Note; L. Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lende 's prior written consent; or M. Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower's a ility to pay this Note. 6. LENDER'S JUGHTS IF THERE IS A DEFAULT: Without notice or demand and without giving up any of its rights, Lender may: A. Require immediate payment of all amounts owing under this Note; B. Collect all amounts owing from any Borrower or Guarantor; C. File suit and obtain judgment; D. Take possession of any Collateral; or E. Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement. SBA Form 147 PO/22/98) Previous editions obsolete Pa e 3'6 7. LENDER'S GENERAL POWERS: Without notice and without Borrower's consent, Lender may: A. Bid on at buy the Collateral at its sale or the sale of another lienholder, at any price it chooses' B. Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any 0 er Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may in lude payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reas nable attorney's fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Barr wer or add the expenses to the principal balance; C. Release anyone obligated to pay this Note; D. Compromise, release, renew, extend or substitute any of the Collateral; and E. Take any action necessary to protect the Collateral or coUect amounts owing on this Note. 8. WHEN FEDERAL LAW APPLIES: \\!hen SBA is the holder, this Note will be interpreted and enforced under federal law, including SB regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notic , foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from tate or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any 1 calor state law to deny any obligation, defeat any claim of SBA, or preempt federal law. 9. SUCCESSORS AND ASSIGNS: Under this Note, Borrower and Operating Company include the successors of each, and Lender inclLld s its successors and assigns. 10. GENERAL PROVISIONS: A. All individuals and entities signing this Note are jointly and severally liable. B. Bon'ower waives all suretyship defenses. C. Borrower must sign all documents necessary at any time to comply with the Loan Documents and tenable Lender to acquire, perfect, or maintain Lender's liens on Collateral. D. Lender may exercise any of its rights separately or together, as many times and in any order it choos s. Lender may delay or forgo enforcing any of its rights without giving up any of them. E. Borrower may not use an oral statement of Lender or SBA to contradict or aIter the written tenns of is Note. F. If any part of this Note is unenforceable, all other parts remain in effect. G. To the extent allowed by law, Borrower waives all demands and notices in connection with this Note including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upo any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; i paired Collateral; or did not obtain the fair market value of Collateral at a sale. SEA Form 147 (10f22J98) Previous editions obsolete Page 4/6 ] 1. STATE-SPECIFIC PROVlSIOI'';;; Borrower hereby irrevocably authorizes and empowers any attorney or the attorney or the prothono ary or clerk of any court in the Commonwealth of Pennsylvania, or elsewhere, to appear at any time for Borrow r after a default under this Note, and with or without complaint filed, as of any term, confess or enter judgme t against borrower for the entire principal balance of this Note, all accrued interest, late charges, and any and all amounts expended or advanced by Lender relating to any collateral securing this Note together with interest n such amounts, together with costs of suit, and an attorney's commission of ten percent (10%) of the unpa principal balance and accrued interest for collection, but in any event not less than five hundred dollars ($500 on which 'udgement or judgements one or more executions may Issue immediately; and for so doing, this Not or a copy of this Note verified by affidavit shall be sufficient warrant. The authority granted in this Note to confes judgement against Borrower shall not be exhausted by any exercise of that authority, but shall continue from tim to time and at all times until payment in full of all amDunts due under this Note. Borrower hereby waives any righ Borrower may have to notice Dr to a hearing in connection with any such confession of judgment, except any n tlce and/or hearing required under applicable law with respect to execution of the judgment, and states that eithe a representative of Lender specifically called this confession of judgment provision to Borrower's attenti nor Borrower has been represented by independent legal counsel. The lien arising from any judgment co fessed or entered pursuant to the foregoing authority shall not extend to any of Borrower's residential real prope y as that term is defined in the Pennsylvania Act of January 30, 1974 (PA Laws 13, No.6), referred to as the 10 n interest and protection law, as amended, and the holder of any judgment confessed or entered pursuant to the oregoing authority shall not, in enforcement of any such judgment execute, levy or otherwise proceed against an such residential real property; provided, however, that the lien of such judgment shall extend to such residen ial real property and that the holder thereof shall be permitted to execute, levy, or proceed against such reside tial real property from and after the entry of a judgment as contemplated by Section 407 of such loan interest ar p protection law and Rules 2981 to 2986 of the Pennsylvania Rules of Civil Procedure, or successor or si ilar statutes and rules. No limitation of lien or any execution, levy or other enforcement contained in the imr ediately preceding sentence shalf apply with respect to any judgment obtained other than by the foregoing autho ity to confess or enter judgment. SBA Form 147 (10/22/98) Previous editions obsolete P ge 516 12. BORROWER'S NAME(S) AND SIGNATURE(S): By signing below, each individual or entity becomes obligated under this Note as Borrower. Mani Caffe International, Inc. lIa Mani Caffe RoBert L Pham, President SBA Form 147 (10J22/98) Previous editions obsolete age 6/6 Ext...:Ia; fC OMB Approval No. 3245-0201 Expiration Date: 7-31-2000 U.S. Small Business Administration Date UoI~ SECURITY AGREEMENT I. Mani Caffe International Inc. tla Mani Caffe (Name) (hereinafter called "Debtor"),Cam Hill Sho in Mall- 32nd Street and Trindle Road Cam Hill PA 17011 (Address) for value received, hereby grants to Commerce Bank/Harrisbur N.A. (Name) 100 Senate Avenue Camp Hill, PA 17011 (he inafter called (Address) "Secured party"), a security interest in the property described below (hereinafter collectively called "Collatera ') to secure the payment of the principal and interest on and all obligations under a note (hereinafter called the "Note"), da ed , of the Debtor payable to the order of the Secured Party, in the principal amount of Thirty thousand NO/IOO ***************..**************************** Dollars ($30,000.00 ), all renewals and extensions of the Note, and all costs, expenses, advances and liabilities which may be made or incurred b Secured Party in the disbursement, administration and collection of the loan evidenced by the Note and in the protection, maint nance and liquidation of the security interest hereby granted with interest at the maximum legal rate on such costs, expen es, advances and liabilities. The Note and all other obligations secured hereby are herein collectively called the "Liabilities." 2. The Collateral in which this security interest is granted is all of the Debtor's property described below in re rence to which an "X" or checkmark has been placed in the box applicable thereto, together with all the proceeds and product therefrom. If two such boxes are so marked, the security interest so designated secures the purchase money from the loan us d by the Debtor to acquire title to the Collateral. bZl bZl a. All equipment and machinery, including power-driven machinery and equipment, furniture and fix res now owned or hereafter acquired, together with all replacements thereof, all attachments, accessories, parts and tools belonging thereto or for use in connection therewith. o 0 b. All passenger and commercial motor vehicles registered for use upon public high.ways or streets, no or hereinafter acquired, together with all replacements thereof, all attachments, accessories, parts, equi and tools belonging thereto or for use in connection therewith. owned ent bZl E;ZI c. All inventory, raw materials, work in process and supplies now owned or hereinafter acquired. bZl 0 d. All accounts receivable now outstanding or hereafter arising. bZl 0 e. All contract rights and general intangibles now in force or hereafter acquired. 3. Debtor shall not transfer, sell or assign Debtor's interest in the Collateral nor permit any other security interes to be created thereon without Secured Party's prior written approval, except that Debtor may sell the inventory listed in Paragr ph 2.c. hereof in the ordinary course of business on customary terms and at usual prices and may collect as Secured Party's age t sums due on accounts receivable and contract rights listed in Paragraphs 2.d. and 2.e. until advised otherwise by Secured Pa SBA FORM 1059 (10-86) REF SOP 70 50 Use 11-85 Edition Until Exhausted 4. Debtor shall keep, store or regularly garage all Collateral at locations approved by ~ecured Party in writing 5. Debtor shall not conduct business under any other name than that given above nor change or reorganize th type of business entity under which it does business except upon prior written approval of Securedl'arty. lIsuch app val is given, Debtor guarantees that all documents, instruments and agreements demanded by Secured Party shall be prepar d and filed at Debtor's expense before such change of name or business entity occurs. 6. Debtor shall pay the filing and recording costs of any documents or instruments necessary to perfect, exten , modify, or tenninate the security interest created hereunder, as demanded by Secured Party. 7. Debtor shall maintain all Collateral in good condition, pay promptly all taxes, judgments, or changes of any kind levied or assessed thereon, keep current all rent due on premises where Collateral is located, and maintain insurance n all Collateral against such hazards, in such amounts and with such companies as Secured Party may demand, all such insur ce policies to be in the possession of Secured Party and to contain a Lender's Loss Payable Clause naming Secured Party i a manner satisfactory to Secured Party. Debtor hereby assigns to Secured Party any proceeds of such policies and all un amed premiums thereon, and authorizes and empowers Secured Party to collect such sums and to execute and endor in Debtor's name all proofs ofloss, drafts, checks and any other documents necessary to accomplish such collections, and y persons or entities making payments to Secured Party under the terms of this Paragraph are hereby relieved absolutely om any obligation to see to the application of any sums so paid. 8. Debtor shaH be in default hereunder if Debtor fails to perfonn any of the liabilities imposed hereby or any 0 required by the various instruments or Qapers evidencing or securing this loan, or if the full balance of the loan immediately payable under the tenns or such instruments, either automatically or by declaration of the Secured the event of any default, Secured Party may, in its own discretion, cure such default and, if it does so, any expe made for such purpose shall be added to the principal of the Note. er obligation ecomes arty. In ditures 9. In the event ofa default, Debtor shall assemble and make available all Collateral at any place designated by ecured Party. Debtor acknowledges being advised of a constitutional right to a court notice and hearing to determine whether upon defauft there is probable cause to sustain the validity of the Secured Party's claim and whether tlie Secured Party is enti led to possession of the Collateral and being so advised, Debtor hereby voluntarily gives up, waives and surrenders right to a notice and hearing to detennine whether there is probable cause to sustain the validi!)' of Secured Party's claim. Any notices required pursuant to any state or local law shall be deemed reasonable if mailed by Secured P~ to tlie person enlItled thereto at their last known addresses at least ten days prior to disposition of the Collateral, and, in reference to private sale, need state only that Secured Pa':lY intends to negotiate such a sale. Disposition of Collateral shall be deem d commercially reasonable if made pursuant to a publIc offering advertised at least twice in a newspaper of general circulation. the community where the Collateralls located or by a private sale for a sum equal to or in excess of the liquidation a\ue of the Collateral as determined by Secured Party. 10. All rights conferred on Secured Party hereby are in addition to those granted to it by any state or local law r any other law. Failure or repeated failure to enforce any nghts hereunder shall not constitute an estoppel or waiver of Sec red Party's rights to exercise such rights accruing prior or subsequent thereto. Secured Party shall notoe liable for any loss to Collateral in it~ possession, nor shall such loss diminish the debt due, even if the loss is caused or contributed to by Secure Party's neghgence. The Joan secured by this lien was made under a United States Small Business Administration (SBA) nationwide program which uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA regulations: a) When SBA is the holder of the Note, this document and all documents eVidencing or securing this Loan will be construed in accordan with federal law. b) Lender or SBA may use local or state procedures for purposes such as filing papers, recording documents, giving notice, foreclosing Ii ns, and other purposes. By using these procedures, SBA does not waive any federal immunity from local or state control, penalty, tax or liabi ty. No Borrower or Guarantor may claim or assert against SBA any local or state law to deny any obligation of Borrower, or defeat any claim f SBA with respect to this Loan. Any clause in this document requiring arbitration is not enforceable when SBA is the holder of The Note secured by this instrument. IN WITNESS WHEREOF, Mani n ema' naI, Inc. t/a Mani Caffe ( 03-03-00 Robert L. Pham, President SBA Form 1059 (10-B6) REF: SOP 70 50 Page 2 / '- E"J.,:bdD O~1B Approval No. 3 45-0201 Expiration Date: -31-2000 U.S. Small Business Administration SECURITY AGREEMENT Date li?,- 0]--( i) 1. Mani Caffe International Inc. t/a Mani Caffe (Name) (hereinafter called "Debtor"), Camn Hill Shonninp Mall- 32nd Street and Trindle Road Camn Hill PA 17011 (Address) for value received, hereby grants to Commerce BankIHarrisburg, N.A. (Name) 100 Senate Avenue Camp Hill, PA 17011 (herei after called (Address) "Secured Party"), a security interest in the property described below (hereinafter collectively called "Collateral") to secure the payment ofthe principal and interest on and all obligations under a note (hereinafter called the "Note"), date , ofthe Debtor payable to the order of the Secured Party, in the principal amount of Thirtv thousand NOlI 00 **********..**.**....*....*.......****..*...* Dollars ( $30,000.00 ), a renewals and extensions of the Note, and all costs, expenses, advances and liabilities which may be made or incurred by S cured Party in the disbursement, administration and collection of the loan evidenced by the Note and in the protection, mainten nee and liquidation of the security interest hereby granted with interest at the maximum legal rate on such costs, expense, advances and liabilities. The Note and all other obligations secured hereby are herein collectively called the "Liabilities." 2. The Collateral in which this security interest is granted is all of the Debtor's property described below in refer nee to which an "X" or checkmark has been placed in the box applicable thereto, together with all the proceeds and products t erefrom. If two such boxes are so marked, the security interest so designated secures the purchase money from the loan used by the Debtor to acquire title to the Collateral. &ZI bZl a. All equipment and machinery, including power-drlven machinery and equipment, furniture and fixtur snow owned or hereafter acquired, together with all replacements thereof, all attachments, accessories, parts a d tools belonging thereto or for use in connection therewith. o 0 b. All passenger and commercial motor vehicles registered for use upon public highways or streets, now wned or hereinafter acquired, together with all replacements thereof, all attachments, accessories, parts, equiprr nt and tools belonging thereto or for use in connection therewith. &ZI bZl c. All inventory, raw materials, work in process and supplies now owned or hereinafter acquired. &ZI 0 d. All accounts receivable now outstanding or hereafter arising. &ZI 0 e. All contract rights and general intangibles now in force or hereafter acquired. 3. Debtor shall not transfer, sell or assign Debtor's interest in the Collateral nor permit any other security interest be created thereon without Secured Party's prior written approval, except that Debtor may sell the inventory listed in Paragra h 2.c. hereof in the ordinary course of business on customary terms and at usual prices and may collect as Secured Party's agent sums due on accounts receivable and contract rights listed in Paragraphs 2.d. and 2.e. until advised otherwise by Secured Party. SBA FORM 10S9 (10-86) REF SOP 70 so Use 11-85 Edition Until Exhausted 4~ Debtor shall keep, store or regularly garage all Collateral at locations approved by ::>ecured Palty in writing. S. Debtor shall not conduct business under any other name than that given above nor change or reorganize the business entity under which it does business except upon prior written approval of Securedl'arty. IEuch appro Debtor guarantees that all documents, instruments and agreements demanded by Secured Party shall be prepare at Debtor's expense before such change of name or business entity occurs. 6. Debtor shall pay the filing and recording costs of any documents or instruments necessary to perfect, extend, terminate the security interest created hereunder, as demanded by Secured Party. 7. Debtor shall maintain all Collateral in good condition, pay promptly all taxes, judgments, or changes of any 'nd levied or assessed thereon, keep current all rent due on premises where Collateral is located, and maintain insurance 0 all Collateral against such hazards, in such amounts and with such companies as Secured Party may demand, all such insuran policies to be in the possession of Secured Party and to contain a Lender's Loss Payable Clause naming Secured Party in manner satisfactory to Secured Party. Debtor hereby assigns to Secured Party any proceeds of such policies and all une ed premiums thereon, and authorizes and empowers Secured Party to collect such sums and to execute and endorse in Debtor's name all proofs of loss, drafts, checks and any other documents necessary to accomplish such collections, and persons or entities making payments to Secured Party under the tenns of this Paragraph are hereby relieved absolutely fr many obligation to see to the application of any sums so paid. 8. Debtor shall be in default hereunder if Debtor fails to perfonn any of the liabilities imposed hereby or any ot r obligation required by the various instruments or Rapers evidencing or securing this loan, or if the full balance of the loan b comes immediately payable under the tenns of such instruments, either automatically or by declaration of the Secured . In the event of any default, Secured Party may, in its own discretion, cure such default and, if it does so, any expen itures made for such purpose shall be added to tne principal of the Note. 9. In the event of a default, Debtor shall assemble and make available all Collateral at any place designated by S cured Party. Debtor acknowledges being advised of a constitutional right to a court notice and hearing to determine whether, Ron default there is probable cause to sustain the validity of the Secured Party's claim and whether tlie Secured Party is entitl d to possession of the Collateral and being so advised, Debtor hereby voluntarily gives up, waives and surrenders an right to a notice and hearing to determine whether there is probable cause to sustain the validity of Secured Party's claim. ny notices required pursuant to any state or local law shall be deemed reasonable if mailed by Secured Party to tne persons nlItled thereto at their last known addresses at least ten days prior to disposition of the Collateral, and, in reference to a rivate sale, need state only that Secured P'!':lY intends to negotiate such a sale. Disposition of Collateral shall be deem commercially reasonable if made pursuant to a publIc offering advertised at least twice in a newspaper of general circulation in the community where the CollateraIls located or by a private sale for a sum equal to or in excess of the liquidation v lue of the Collateral as detennined by Secured Party. 10. All rights conferred on Secured Party hereby are in addition to those granted to it by any state or local law 0 law. Failure or repeated failure to enforce any nghts hereunder shall not constitute an estoppel or waiver of See rights to exercise such rights accruing prior or subsequent thereto. Secured Party shall notlJe liable for any loss in its possession, nor shall such loss diminish the debt due, even if the loss is caused or contributed to by Secure negligence. any other eo P(U1y's Collateral Party's The loan secured by this lien was made under a United States Small Business Administration (SaA) nationwide program which uses tax dollars to assist small business owners. If the United Stales is seeking to enforce this document, then under SBA regulations: a) When SBA is the holder of the Note, this document and all documents evidencing or securing this Loan will be construed in accordanc with federal law . b) Lender or SaA may use local or state procedures for purposes such as filing papers, recording documents, giving notice, foreclosing Ii ns, and other purposes. By using these procedures, SaA does not waive any federal immunity from (ocal or state control, penalty, tax or liabili y. No Borrower or Guarantor may claim or assert against SBA any local or state law to deny any obligation of Borrower, or defeat any claim f SBA with respect to this Loan. Any clause in this document requiring arbitration is not enforceable when SBA is the holder of The Note secured by this instrument. IN WITNESS WHEREOF, Mani Caffe International, Inc. tJa Mani Caffe f Ds'- 03-(;0 obert L. Pham, President SBA Form 1059 (10.86) REF: SOP 70 50 Page 2 E)(I.:I...';' E ~lD U.S. Small Business Administration UNCONDITIONAL GUARANTEE SBA Loan # PLP 360-243-4007 SBA Loan Name Mani Caffe International, Inc. lIa Mani Caffe Robert L. Pham Guarantor Borrower Mani Caffe International, Inc. lIa Manl Gaffe Lender Date Commerce Bank/Harrisburg, N.A Note Amount ~ACl\e,1J 3 .,;;tDt:() 30,000.00 1. GUARANTEE: Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Gu, antee remains in effect until the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender akes written demand upon Guarantor. Lender is not required to seek payment from any other source before demandin payment from Guarantor. 2. NOTE: The "Note" is the promissory note dated in the pri cipaI amount of Thirty thousand NO/1 00 ********""******"'******"',\,,"*******"******************************_**"11'********************** Dollars, from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Note and multiple notes under a line of credit. 3. DEFINITIONS: "Collateral" means any property taken as security for payment of the Note or any guarantee of the Not. "Loan" means the loan evidenced by the Note. "Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor or any 0\ er guarantor, or anyone who pledges Collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. SBA Form 148 (10198) Previous editions obsolete. Page 1/5 4. LENDER'S GENERAL POWERS: Lender may take any of the following actions at any time, without notice, without Guarantor's consent, and ithout making demand upon Guarantor: A. Modify the terms of the Note or any other Loan Document except to increase the amounts due under th Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor ofthe Note; D. Compromise or settle with the Borrower or any guarantor ofthe Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or wit out advertisement; G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; an H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against ender. 5. FEDERAL LAW: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, i Iuding SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, givi g notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immuni from state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local 0 state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to: I) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. B. Guarantor waives any notice of: I) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, celeration, intent to accelerate, assignment, collection activity, and incurring enforcement expenses; 5) Any change in the financial condition or business operations of Borrower or any guarantor; 6) Any changes in the terms of the Note or other Loan Documents, except increases in the amount due under the Note; and 7) The time or place of any sale or other disposition of Collateral. C. Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken s Collateral; 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (10/98) Previous editions obsolete. Page 215 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; . 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor 0 the Note; 10) The financial condition of Borrower or any guarantor was overstated or has adversely changed; 11) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before de anding payment from Guarantor: 13) Lender impaired Guarantor's suretyship rights; 14) Lender modified the Note terms, other than to increase amounts due under the Note. If Lender mo ifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will not e liable for the increased amounts and related interest and expenses, but remains liable for all other amou s; 15) Borrower has avoided liability on the Note; or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty 0 preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and as igns. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce thi Guarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays Lender. SBA is not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGA TlON RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral unti the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly a d severally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with t e Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RIGHTS CUMULA TlVE, NOT WAIVED. Lender may exercise any of its rights sep together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights withou impairing any ofthem. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or Iter the written tenus ofthe Note or this Guarantee, or to raise a defense to this Guarantee. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will re ain in effect. CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by L nder as to the Loan. telyor losing or L J. SBA Form 148 (1 O/S8) Previous editions obsolete. Page 3{5 10. STA TE-SPECIFlC PROVISIONS: Borrower hereby irrevocably authorizes and empowers any attorney or the attorney or the prothonotary or cI rk 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, as of any term, confess or enter judgment again t borrower for the entire principal balance of this Note, all accrued interest, late charges, and any and all amo nts expended or advanced by Lender relating to any collateral securing this Note together with interest on such amounts, together with costs of suit, and an attorney's commission of ten percent (10%) of the unpaid prine al balance and accrued interest for collection, but in any event not less than five hundred dollars ($500) on wr ch 'udgement or judgements one or more executions may issue immediately; and for so doing, this Note or a cbpy of this Note verified by affidavit shall be sufficient warrant. The authority granted in this Note to confess judge ment against Borrower shall not be exhausted by any exercise of that authority, but shall continue from time to ti e and at all times until payment in fuli of all amounts due under this Note. Borrower hereby waives any right Borr wer may have to notice or to a hearing in connection with any such confession of judgment, except any notice ndlor hearing required under applicable law with respect to execution of the 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. The lien arising from any judgment confes ed or entered pursuant to the foregoing authority shall not extend to any of Borrower's residential real property a that term is defined in the Pennsylvania Act of January 30, 1 974 (PA Laws 13, No.6), referred to as the ioan i erest and protection law, as amended, and the holder of any judgment confessed or entered pursuant to the for going authority shall not, in enforcement of any such judgment execute, levy or otherwise proceed against any s ch 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 residenti I real property from and after the entry of a judgment as contemplated by Section 407 of such loan interest and protection law and Ruies 2981 to 2986 of the Pennsylvania Rules of Civil Procedure, or successor or simi ar statutes and rules. No limitation of lien or any execution, levy or other enforcement contained in the imm diately preceding sentence shall apply with respect to any judgment obtained other than by the foregoing authori to confess or enter judgment. $BA Form 148 (10198) Previous editions obsolete. Page 4/5 11. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges that Guarantor has read and understands the significance of aU tenus of the Note d this Guarantee, including aU waivers. 12. GUARANTOR NAME(S) AND SIGNA TURB(S): By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee. 03-03.- Robert L Pham $BA Form 148 {101gB} Previous editions obsolete. Page 5tS f Ex t,,: ,.. f {- u.s. Small Business Administration UNCONDITIONAL GUARANTE SBA Loan # PLP 360-243-4007 SBA Loan Name Mani Caffe International, Inc. tJa Man; Caffe Naomi Pham Guarantor Mani Caffe International, Inc. tJa Mani Caffe Borrower Lender Commerce Bank/Harrisburg, NA Date MC\.\ct. 3, 'd.OCO 30,000.00 Note Amount l. GUARANTEE: Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Gu antee remains in effect until the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender akes written demand upon Guarantor. Lender is not required to seek payment from any other source before demandi g payment from Guarantor. 2. NOTE: The "Note" is the promissory note dated in the pri cipal amount of Thirt thousand NO/1 00 *************"'************************************************************************** Dollars, from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Not and multiple notes under a line of credit. 3. DEFINITIONS: "Colla~eraI" means any property taken as security for payment of the Note or any guarantee of the Not. "Loan" means the loan evidenced by the Note. "Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor or any 0 er guarantor, or anyone who pledges Collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. SBA Form 148 (10/98) Previous editions obsolete. Page 1/5 4. LENDER'S GENERAL POWERS: Lender may take any ofthe following actions at any time, without notice, without Guarantor's consent, and ithout making demand upon Guarantor: A. ModifY the terms of the Note or any other Loan Document except to increase the amounts due under th Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or wit out advertisement; G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; an H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against ender. 5. FEDERAL LAW: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, i luding SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, givi g notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immuni from state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local 0 state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES TIlA T GUARANTOR W AlVES: To the extent permitted by law, A. Guarantor waives all rights to: I) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. B. Guarantor waives any notice of: I) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, cceleration, intent to accelerate, assignment, collection activity, and incurring enforcement expenses; 5) Any change in the financial condition or business operations of Borrower or any guarantor; 6) Any changes in the terms ofthe Note or other Loan Documents, except increases in the amoun due under the Note; and 7) The time or place of any sale or other disposition of Collateral. C. Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken s Collateral; 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (10/9B) Previous editions obsolete. Page 215 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any guarantor the Note; 10) The financial condition of Borrower or any guarantor was overstated or has adversely changed; 11) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral before d anding payment from Guarantor: 13) Lender impaired Guarantor's suretyship rights; 14) Lender modified the Note terms, other than to increase amounts due under the Note. If Lender m ifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will no be liable for the increased amounts and related interest and expenses, but remains liable for all other amou ts; 15) Borrower has avoided liability on the Note; or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no duty to preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and igns. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce thi Guarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays Lender. SB is not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral unt' the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly d severally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with e Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights sep together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights withou impairing any of them. B. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradictor Iter the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will re ain in effect. CONSIDERA TlON. The consideration for this Guarantee is the Loan or any accommodation by L nder as to the Loan. te1y or losing or l. 1. SBA Form 148 (10/98) Previous editions obsolete- Page 3f5 10. STATE-SPECIFIC PROVISIONS: Borrower hereby Irrevocably authorizes and empowers any attorney or the attorney or the prothonotary or lerk of any court In the Commonwealth of Pennsylvania, or elsewhere, to appear at any time for Borrower afte a default under this Note, and with or without complaint filed, as of any term, confess or enter judgment aga [lst borrower for the entire principal balance of this Note, all accrued interest, late charges, and any and all ar ounts expended or advanced by Lender relating to any collateral securing this Note together with interest on su h amounts, together with costs of suit, and an attorney's commission of ten percent (10%) of the unpaid prir ipal balance and accrued interest for collection, but in any event not less than five hundred dollars ($500) on v hlch 'udgement or judgements one or more executions may issue immediately; and for so doing, this Note or a copy of this Note verified by affidavit shall be sufficient warrant. The authority granted in this Note to confess jud ement against Borrower shall not be exhausted by any exercise of that authority, but shall continue from time to 'me and at all times until payment in full of all amounts due under this Note. Borrower hereby waives any right Bo ower may have to notice or to a hearing in connection with any such confession of judgment, except any notice and/or hearing required under appllcabie law with respect to execution of the judgment, and states that either a representative of Lender specifically called this confession of judgment proVision to Borrower's attention r Borrower has been represented by independent legal counsel. The lien arising from any judgment confe sed or entered pursuant to the foregoing authority shall not extend to any of Borrower's residential real property s that term is defined in the Pennsylvania Act of January 30, 1974 (PA Laws 13, No.6), referred to as the loan ihterest and protection law, as amended, and Ihe holder of any judgment confessed or entered pursuant to the fo egoing authority shall not, in enforcement of any such judgment execute, levy or otherwise proceed against any uch residential real property; provided, however, that the lien of such judgment shall extend to such residenti I real property and that the holder thereof shall be permitted to execute, levy, or proceed against such residenti I real property from and after the entry of a judgment as contemplated by Section 407 of such loan interest anc protection law and Rules 2981 to 2986 of the Pennsylvania Rules of Civil Procedure, or successor or slrr lar staIules and rules. No limitation of lien or any execution, levy or other enforcement contained in the jmm diately preceding sentence shall apply with respect to any judgment obtained other than by the foregoing author ty to confess or enter judgment. SBA Form 148 (10/98) Previous editions obsolete. Page 4/5 11. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the Not and this Guarantee, including all waivers. ] 2. GUARANTOR NAME(S) AND SIGNA TURE(S): By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee. "5d~ ~ D3 0:; -- )[) SBA Form 148 (10/98) Previous editions obsolete. Page 5/5 ---------- - . F",,/";L,'.f G- us Small Buslne!i!J Administration ~:D U.S. Small Business Administration UNCONDITIONAL GUARANTEI SBA Loan # EXP 360-953-4005 SBA Loan Name Mani Caffe International, Inc. Va Manl Caffe Robert L.Pham Guarantor Man' Caffe International, Inc. Va Man! Caffe Borrower Lender Commerce Bank/Harrisburg, NA Date :bj?> \00 Note Amount 30,000.00 l. GUARANTEE: Guarantor unconditionally guarantees payment to Lender of all amounts owing under the Note. This Gu rantee remains in effect untit the Note is paid in full. Guarantor must pay all amounts due under the Note when Lender nakes written demand upon Guarantor. Lender is not required to seek payment from any other source before demandi g payment frolIl Guarantor. 2. NOTE: The "Note" is the promissory note dated in the pr "dpal amount 0 Thirty thousand NO/1 00 *******"1<********1<*********************************"'''''*'''*>1"******************************** 11 DollarS from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Not, and multiple notes under a line of credit. 3. DEFINITIONS: "Collateral" means any property taken as security for payment of the Note or any guarantee of the No "Loan" means the Joan evidenced by the Note. "Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor or any 0 er guarantor, ot:""' anyone who pledges Collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. SBA Form 148 (10/98) Previous editions obsolete. Page :f , --. - 4. LENDER'S GENERAL POWERS: Lender may take any of the following actions at any time, without notice, without Guarantor's consent, d without making demand upon Guarantor: A. Modify the terms of the Note or any other Loan Document except to increase the amounts due under the Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or advertisement; G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; d H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims again Lender. 5. FEDERAL LA W: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, cluding SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giv ng notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immun ty from state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local r state law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to: I) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. B. Guarantor waives any notice of: I) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, cceleration, intent to accelerate, assigrunent, collection activity, and incurring enforcement expenses; 5) Any change in the financial condition or business operations of Borrower or any guarantor; 6) Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due under the Note; and 7) The time or place of any sale or other disposition of Collateral. C. Guarantor waives defenses based upon any claim that: 1) Lender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken Collateral; 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (10198) Previous editions obsolete. Page 215 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value ofthe Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any guar tor of the Note; 10) The financial condition of Borrower or any guarantor was overstated or has adversely change II) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral befo e demanding payment from Guarantor: 13) Lender impaired Guarantor's suretyship rights; 14) Lender modified the Note terms, other than to increase amounts due under the Note. IfLende modifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will at be liable for the increased amounts and related interest and expenses, but remains liable for all other aunts; 15) Borrower has avoided liability on the Note; or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no du to preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and signs. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce thi Guarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even if SBA pays Lender. SBA s not a co-guarantor with Guarantor. Guarantor has no right of contribution from SBA. C. SUBROGATION RIGHTS. Guarantor has no subrogation rights as to the Note or the Collateral until he Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly an severally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with th Loan Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RIGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separate y or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without 10 'ng or impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alte the written terms of the Note or this Guarantee, or to raise a defense to this Guarantee. I. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain 'n effecl. J. CONSIDERATION. The consideration for this Guarantee is the Loan or any accommodation by Lende as to the Loan. $BA Form 148 {10/98} Previous editions obsolete. Page 3/5 10. STATE-SPECIFIC PROVISIONS: Borrower hereby irrevocably authorizes and empowers any attorney or the attorney or the prothonot~ry or clerk of any court in the Commonwealth of Pennsylvania, or elsewhere, to appear at any time for Borrow after a default under this Guarantee, and with or without complaint filed, as of any term, confess or enter ju gment against borrower for the entire principal balance of this Guarantee, all accrued interest, late charges and any and all amounts expended or advanced by Lender reiating to any collateral securing this Guarantee tog ther with interest on such amounts, together with costs of suit, and an attorney's commission of ten percent (1 %) of the unpaid principal balance and accrued interest for collection, but in any event not less than five hundr d dollars ($500) on which judgement or judgements one or more executions may issue immediately; and for s doing, this Guarantee or a copy of this Guarantee verified by affidavit shall be sufficient warrant. The authority ranted in this Guarantee to confess judgement against Borrower shall not be exhausted by any exercise of tha authority, but shall continue from time to time and at all times until payment in full of all amounts due under this puarantee. Guarantor hereby waives any right Guarantor may have to notice or to a hearing in connection with a y such confession of judgment, except any notice and/or hearing required under applicable law with respect execution of the judgment, and states that either a representative of Lender specifically called this confession of 'udgment provision to Guarantor's attention or Guarantor has been represented by independent legal counsel. he lien arising from any judgment confessed or entered pursuant to the foregoing authority shall not extend to any of Guarantor 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 judg ent confessed or entered pursuant to the foregoing authority shall not, in enforcement of any such judgme t execute, levy or otherwise proceed against any such residential real property; provided, however, that the lien 0 such 'udgment shall extend to such residential real property and that the holder thereof shall be permitted to xecute, levy, or proceed against such residential real property from and after the entry of a judgment as contem lated by Section 407 of such loan interest and protection law and Rules 2981 to 2986 of the Pennsylvania Rule of Civil Procedure, or successor or similar statutes and rules. No limitation of lien or any execution, levy or oth r enforcement contained in the immediately preceding sentence shall apply with respect to any judgment btained other than by the foregoing authority to confess or enter judgment. SBA Form 148 (10/98) PrevIous editions obsolete, Page 415 11. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges that Guarantor has read and understands the significance of all terms of the N te and this Guarantee, including all waivers. 12. GUARANTOR NAME(S) AND SIGNA TURE(S): By signing below, each individual or entity becomes obligated as Guarantor under this Guarantee. ( O~ Or) 5- :;:,- Rob rt L. Pham SBA Form 148 (10/98) Previous editions obsolete. o Page 5/5 ;;^TF" "'-'~AL f!O" ,',,'_Of,1., '-011 RFCyCcFW Ed,,:!..; I- H US Small BusIness Administration u.s. Small Business Administration UNCONDITIONAL GUARANTE SBA Loan # EXP 360-953-4005 SBA Loan Name Mani Caffe International, Inc. Va Mani Caffe Naomi Pham Guarantor Borrower Mani Caffe International, Inc. Va Mani Caffe Lender Commerce Bank/Harrisburg, NA Date Ma.~ 3, Q,mo Note Amount 30,000.00 1. GUARANTEE: Guarantor unconditionally guarantees payment to Lender of aU amounts owing under the Note. This G arantee remains in effect until the Note is paid in fuiL Guarantor must pay all amounts due under the Note when Lende makes written demand upon Guarantor. Lender is not required to seek payment from any other source before demand g payment from Guarantor. 2. NOTE: The "Note" is the promissory note dated in the p ncipal amount of Thirt thousand NO/1 00 ************-..************************************************************************** ... Dollars, from Borrower to Lender. It includes any assumption, renewal, substitution, or replacement of the Not , and multiple notes under a line of credit. 3. DEFINITIONS: "Collateral" means any property taken as security for payment of the Note or any guarantee of the No e. "Loan" means the loan evidenced by the Note. "Loan Documents" means the documents related to the Loan signed by Borrower, Guarantor or any 0 er guarantor, or anyone who pledges Collateral. "SBA" means the Small Business Administration, an Agency of the United States of America. SBA Form 148 (10/9B) Previous editions obsolete. Page 1/5 4. LENDER'S GENERAL POWERS: Lender may take any of the following actions at any time, without notice, without Guarantor's consent, nd without making demand upon Guarantor: A. ModifY the terms of the Note or any other Loan Document except to increase the amounts due unde the Note; B. Refrain from taking any action on the Note, the Collateral, or any guarantee; C. Release any Borrower or any guarantor of the Note; D. Compromise or settle with the Borrower or any guarantor of the Note; E. Substitute or release any of the Collateral, whether or not Lender receives anything in return; F. Foreclose upon or otherwise obtain, and dispose of, any Collateral at public or private sale, with or wi advertisement; G. Bid or buy at any sale of Collateral by Lender or any other lienholder, at any price Lender chooses; a H. Exercise any rights it has, including those in the Note and other Loan Documents. These actions will not release or reduce the obligations of Guarantor or create any rights or claims against ender. 5. FEDERAL LA W: When SBA is the holder, the Note and this Guarantee will be construed and enforced under federal law, in uding SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, givin notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity rom state or local control, penalty, tax, or liability. As to this Guarantee, Guarantor may not claim or assert any local or s te law against SBA to deny any obligation, defeat any claim of SBA, or preempt federal law. 6. RIGHTS, NOTICES, AND DEFENSES THAT GUARANTOR WAIVES: To the extent permitted by law, A. Guarantor waives all rights to: I) Require presentment, protest, or demand upon Borrower; 2) Redeem any Collateral before or after Lender disposes of it; 3) Have any disposition of Collateral advertised; and 4) Require a valuation of Collateral before or after Lender disposes of it. B. Guarantor waives any notice of: I) Any default under the Note; 2) Presentment, dishonor, protest, or demand; 3) Execution of the Note; 4) Any action or inaction on the Note or Collateral, such as disbursements, payment, nonpayment, accele ation, intent to accelerate, assignment, collection activity, and incurring enforcement expenses; 5) Any change in the financial condition or business operations of Borrower or any guarantor; 6) Any changes in the terms of the Note or other Loan Documents, except increases in the amounts due u der the Note; and 7) The time or place of any sale or other disposition of Collateral. C. Guarantor waives defenses based upon any claim that: I) Lender failed to obtain any guarantee; 2) Lender failed to obtain, perfect, or maintain a security interest in any property offered or taken as Collat ral; 3) Lender or others improperly valued or inspected the Collateral; 4) The Collateral changed in value, or was neglected, lost, destroyed, or underinsured; SBA Form 148 (10198) Previous editions obsolete, age 215 - 5) Lender impaired the Collateral; 6) Lender did not dispose of any of the Collateral; 7) Lender did not conduct a commercially reasonable sale; 8) Lender did not obtain the fair market value of the Collateral; 9) Lender did not make or perfect a claim upon the death or disability of Borrower or any gu tor of the Note; 10) The financial condition of Borrower or any guarantor was overstated or has adversely chan II) Lender made errors or omissions in Loan Documents or administration of the Loan; 12) Lender did not seek payment from the Borrower, any other guarantors, or any Collateral befi e demanding payment from Guarantor: ] 3) Lender impaired Guarantor's suretyship rights; 14) Lender modified the Note terms, other than to increase amounts due under the Note. IfLende modifies the Note to increase the amounts due under the Note without Guarantor's consent, Guarantor will ot be liable for the increased amounts and related interest and expenses, but remains liable for all other unts; ] 5) Borrower has avoided liability on the Note; or 16) Lender has taken an action allowed under the Note, this Guarantee, or other Loan Documents. 7. DUTIES AS TO COLLATERAL: Guarantor will preserve the Collateral pledged by Guarantor to secure this Guarantee. Lender has no du to preserve or dispose of any Collateral. 8. SUCCESSORS AND ASSIGNS: Under this Guarantee, Guarantor includes heirs and successors, and Lender includes its successors and as gus. 9. GENERAL PROVISIONS: A. ENFORCEMENT EXPENSES. Guarantor promises to pay all expenses Lender incurs to enforce this uarantee, including, but not limited to, attorney's fees and costs. B. SBA NOT A CO-GUARANTOR. Guarantor's liability will continue even ifSBA pays Lender. SBA is ot a co-guarantor with Guarantor, Guarantor has no right of contribution from SBA. C. SUBROGATION RlGHTS. Guarantor has no subrogation rights as to the Note or the Collateral until the Note is paid in full. D. JOINT AND SEVERAL LIABILITY. All individuals and entities signing as Guarantor are jointly and se erally liable. E. DOCUMENT SIGNING. Guarantor must sign all documents necessary at any time to comply with the La Documents and to enable Lender to acquire, perfect, or maintain Lender's liens on Collateral. F. FINANCIAL STATEMENTS. Guarantor must give Lender financial statements as Lender requires. G. LENDER'S RlGHTS CUMULATIVE, NOT WAIVED. Lender may exercise any of its rights separately or together, as many times as it chooses. Lender may delay or forgo enforcing any of its rights without losing r impairing any of them. H. ORAL STATEMENTS NOT BINDING. Guarantor may not use an oral statement to contradict or alter the ritten terms of the Note or this Guarantee, or to raise a defense to this Guarantee. I. SEVERABILITY. If any part of this Guarantee is found to be unenforceable, all other parts will remain in ef cl. J. CONSlDERA TION. The consideration for this Guarantee is the Loan or any accommodation by Lender as to the Loan. SBA Form 148 (10/98) Previous editions obsolete. age 3/5 - 10. STATE-SPECIFIC PROVISIONS: Borrower hereby irrevocably authorizes and empowers any attorney or the attorney or the protho tary or clerk of any court in the Commonwealth of Pennsylvania, or elsewhere, to appear at any time for Borro er after a default under this Guarantee, and with or without complaint filed, as of any term, confess or enter ~dgment against borrower for the entire principal balance of this Guarantee, all accrued interest, late charge ,and any and all amounts expended or advanced by Lender relating to any collateral securing this Guarantee to ether with interest on such amounts, 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 hunc red dollars ($500) on which judgement or judgements one or more executions may issue immediateiy; and for 0 doing, this Guarantee or a copy of this Guarantee verified by affidavit shall be sufficient warrant. The authority ranted in this Guarantee to confess judgement against Borrower shall not be exhausted by any exercise of th t authority, but shall continue from time to time and at all times until payment in full of all amounts due under thi Guarantee. Guarantor hereby waives any right Guarantor may have to notice or to a hearing in connection with a y such confession of judgment, except any notice and/or hearing required under applicable law with respect 0 execution of the judgment, and states that either a representative of Lender specifically called this confession 0 judgment provision to Guarantor's attention or Guarantor has been represented by independent legal counsel. he lien arising from any judgment confessed or entered pursuant to the foregoing authority shall not extend t any of Guarantor residential real property as that term is defined in the Pennsylvania Act of January 30, 197 (PA Laws 13, No.6), referred to as the loan interest and protection law, as amended, and the holder of any judg ent confessed or entered pursuant to the foregoing authority shall not, in enforcement of any such judgme t execute, levy or otherwise proceed against any such residential real property; provided, however, that the lien 0 such 'udgment shall extend to such residential real property and that the holder thereof shall be permitted to xecute, levy, or proceed against such residential real property from and after the entry of a judgment as contem lated by Section 407 of such loan interest end 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 othe enforcement contained in the immediately preceding sentence shall apply with respect to any judgment btained other than by the foregoing authority to confess or enter judgment. SBA Form 14-8 {10/98) PrevIOus editlot'l5 obsolete, \ II. GUARANTOR ACKNOWLEDGMENT OF TERMS. Guarantor acknowledges that Guarantor has read and understands the significance of all tenns of the ate and this Guarantee, including all waivers. 12. GUARANTOR NAME(S) AND SIGNATURE(S): By signing below, each individual Dr entity becomes obligated as Guarantor under this Guarantee. Qr~: ~ Naomi Pham 03 - ()~ -.r) SBA Form 148 (1 0/9B) Previous editions obsolete. ge 5/5 / \ .~ -RPR-07-.2005 08: 44 COMMERCE LOAN CT Exl...:~; t 1.. 717 972 2867 P.08 Comm ree .B nk.. March 7. 2005 Robert & Naomi Phan> 2]0 W Locust St Enola, PA ] 7025 RE: Loan /l.eeoonlO # 3602434007 This will seTVe as formal "otilicalion Ihat you arc in default on the above loan because the account is 62 days pa't dllC. Commerce B~nk/Harri,burg. N.A. IS hereby demanding payment!n.fu!! orlhe remaining loa" b.l.nce no later th"n th" close of business On March 17.2005. The amollnt due a\ this lime is as follows, Principal Interest through 0310712005 Late fees through 0310712005 Satisfaction Fee $6,078.86 $ 85.16 $ 62.66 $100.00 Total Due $6,326.68 The 10'" continues to .ecrue mterest at the rate of 6.25% per a1'U1om with a current daily interest "cerual of$ 1.05. Should the loan balance not be paid in full by Ihe "lose of business Oil March] 7, 2005 as demanded herein, be advised thaI the Bank will pursue all legal remedies againsl you as explained in your Promissory Note. If you have any questions on thiS matter, please contact me al (717) 612.2085. Sincerely. COMMERCE BANK/HARRrSIJURG, N.A. ~aaAa. aCLiQtI 'hsha Claggett Asset Quality ASSIstant COTYIm/:-rce Bank I Harnl;j:bu g. N.'" P.O. B x 8599 100 Senale venue Camp 14\\\, Pe.....M.y\Vanla "17m '-8599 'APR-07~2005 08:45 COMMERCE LOAN CT Exl...:l...f .T 717 972 2867 P.11 Comm ree .8 nk.. Much 7. 2005 Robel1 & Naomi Pllam 210 W Locust St Enola. PA 17025 RE: Loan Account; # 36095,4005 This will serve as formal nOlilicalion thai you are in default on the above loan because the account is 62 days past due. Commerce Bank/Harrisburg, N.^. is hereby dcmanding p.yment!!L!!!.!! oflhe r~mai~i~g loan balance nO later Ihan tho ol\)>~ or business on March 17, 2005. The mnoulIl due at this rime is as follows: Principal Inl.'TOSllhrough 03/07/2005 Late fees through 03/07/2005 Satisfaction fee $20,772.38 $ 337.24 $ 15.27 $\00.00 Total Due $2] ,224.89 The loa~ continues to accrue interest at lhe rate of 6.25% per aMum with a cUrre~t daily interest accrual of$ 3.60. Should the loan balance ~ot be paid in full by the close of business on March 17, 2005 as demanded herein, be advised that the Bank will pursue a II legal remedies against you as explained in yaur Promissory Note. If you have any questions an this maltcr, please contact me al (717) 612.20R5. Sincerely, COMMERCE BANKIHARRISBURG, NA ~~i1A. {!iLLtttl Tasha Claggell A"et Quality Assistant Gommfo!rc:tl Oi\lr'lk I Ha((tsblJ . N A PO 8 8599 ,00 Senate VenUQ Camp Kill, Pel1n5ylv.;H'1$ 1700 ,8599 . VERIFICATION I, ANGELA A. MASSER, have read the foregoing document and verify t at I have authority as Vice President and Asset Quality Manager of Commerce Bank/Harrisb rg, N.A to make this Verification on its behalf and that the facts set forth therein are true an correct according to the best of my knowledge, information and belief I understand that any false statement made herein is subject to the penaltie of] 8 Pa. C S.A. S4904, relating to unsworn falsification to authorities. Angela A. Masser DATED: April /J, 2005 42lR18v ~~ "'- (S' ~ ~ ~ '--l.) ~ ~, o .-., ~~~; (:;-1 ~ --< :r;-n ~:-, "':j)~ ., -l r_. _'~ :::- . _ c) f"'.' o c;; \.., ;::... €' ~ ~\ ~ ) ~-_, ;n "'j , ~\ "\',," 'J ;~ ..~ . - .. SHERIFF'S RETURN - REGULAR CASE NO: 2005-01939 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK HARRISBURG NA VS PRAM ROBERT L ET AL ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon PRAM ROBERT L the DEFENDANT , at 1940:00 HOURS, on the 29th day of April at 210 W LOCUST STREET 2005 ENOLA, PA 17025 by handing to ROBERT L PRAM a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Postage Surcharge 18.00 22.20 .37 10.00 .00 50.57 So Answers: ___.".- f/'?/~? )"'." .;'".....~';..,,,.~ P// .>~ ~'/ -- ~ R. Thomas Kline 05/02/2005 METTE EVANS WOODSIDE me this q!:; day of .,~tR1!w Deputy Sneriff Sworn and Subscribed to before fVt ('~. ;) DO 5 A . D . (flpf:~?h21O~~~' /, ~ ~ . SHERIFF'S RETURN - REGULAR CASE NO: 2005-01939 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND COMMERCE BANK HARRISBURG NA VS PHAM ROBERT L ET AL ROBERT BITNER , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon PHAM NAOMI the DEFENDANT , at 1940:00 HOURS, on the 29th day of April at 210 W LOCUST STREET 2005 ENOLA, PA 17025 by handing to ROBERT L PHAM, ADULT IN CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge So Answers: 6.00 .00 .00 10.00 .00 16.00 (._,~';r R. Thomas Kline 05/02/2005 METTE EVANS WOODSIDE me this tI'. 1- day of BY:~~--)~AA=:~ ~eputy Sheri f Sworn and Subscribed to before 7Vt"1 , ~"k"- C fJ,uaJ,,, ~ ;y P othonotary , '2' ) c (2~b A.D. - COMMERCE BANK/HARRISBURG, N.A., Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA v. Docket No. 05-1939 Civil Term ROBERT L. PHAM and NAOMI PHAM, Defendants TO: Naomi Pham 210 West Locust Street Enola, P A 17025 DATE OF NOTICE: May 24,2005 IMPORTANT NOTICE YOU ARE IN DEF AUL T BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAYBE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LA WYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THA T MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, P A 17013 (717) 249-3166 r - Respectfully submitted, METTE, EVANS & WOODSIDE ames H. McElwain r., Esquire Sup. Ct. J.D. No. 99304 340 I North Front Street P. O. Box 5950 Harrisburg,PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: May 24, 2005 ---- CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing Notice of Intent to Take Default Judgment upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Naomi Pham 21 0 West Locust Street Enola, PA 17025 Respectfully submitted, METTE, EVANS & WOODSIDE By: ames H. McElwain J ., Esquire Sup. Ct. J.D. No. 99304 3401 North Front Street P. O. Box 5950 Harrisburg, P A 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Commerce BanklHarrisburg, N.A. Date: May 24, 2005 424937vl ----- -_.~~ ~_. "';".1 , ~ I , C'I c' - Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA COMMERCE BANKlHARRISBURG, N.A., v. Docket No. 05-1939 Civil Term ROBERT L. PHAM and NAOMI PHAM, Defendants TO: Robert L. Pham 21 0 West Locust Street Enola, P A 17025 DATE OF NOTICE: May 24, 2005 IMPORTANT NOTICE YOU ARE IN DEF AUL T BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATTORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, P A 17013 (717) 249-3166 Respectfully submitted, METTE, EVANS & WOODSIDE By: ~ ames H. McElwain Jr., Sup. Ct. J.D. No. 99304 3401 North Front Street P. O. Box 5950 Harrisburg, P A 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: May 24, 2005 CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing Notice of Intent to Take Default Judgment upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Robert L. Pham 21 0 West Locust Street Enola, P A 17025 Respectfully submitted, METTE, EVANS & WOODSIDE By: L9f.~~1 ~mes H. McElwain Jr Esquire Sup. Ct. J.D. No. 99304 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Commerce BanklHarrisburg, N.A. Date: May 24, 2005 r--.l C::, ~_.' :...., ..,.~ - I' (~ .~c_ (. :: - James H. McElwain, Jr., Esquire Mette, Evans & Woodside 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Commerce Bank/Harrisburg, NA COMMERCE BANK/HARRISBURG, NA 100 Senate Avenue Camp Hill, PA 17011 Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA v. Docket No. 05-1939 Civil Term ROBERT L. PHAM and NAOMI PHAM 210 West Locust Street Enola, PA 17025 Defendants PRAECIPE FOR ENTRY OF DEFAULT JUDGMENT TO THE PROTHONOTARY: Please enter judgment in favor of the Plaintiff and against the Defendants, Robert L. Pham and Naomi Pham, for failure to file a responsive pleading to the Complaint (which was endorsed with a Notice to Defend) and served on the Defendants by handing two (2) copies of the Complaint to Robert L. Pham, on April 29, 2005. Please enter judgment in favor of Plaintiff and against Defendants in the amount of $29,359.04, plus all costs and attorney's fees incurred after June 8, 2005, interest after June 8, 2005 at the variable rate of interest as provided for in the Notes and all other charges and expenses provided in the Notes and other loan documents, until the Judgment is paid in full. The undersigned certifies that written notice of intent to file this Praecipe to Enter Default Judgment was mailed to the Defendants on May 24, 2005, a date after default occurred and at least ten (10) days prior to the date of filing this Praecipe. (A copy of the Notice sent to the Defendants is attached as Exhibit "A"). There is no attorney of record for the Defendants. Respectfully submitted, METTE, EVANS & WOODSIDE By: ames H. McElwain, Jr., Esquire Sup. Ct. J.D. No. 93304 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: June 8, 2005 Judgment entered and damage assessed as above: Prothonotary Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYL V ANlA COMMERCE BANKIHARRISBURG, N.A., v. Docket No. 05-1939 Civil Term ROBERT 1. PHAMand NAOMI PRAM, Defendants TO: Robert L. Pham 210 West Locust Street Enola, P A 17025 DATE OF NOTICE: May 24, 2005 IMPORTANT NOTICE YOU ARE IN DEF AUL T BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY ATIORNEY AND FILE IN WRITING WIlli THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORlli AGAINST YOU. UNLESS YOU ACT WITHIN TEN (I 0) DAYS FROM THE DATE OF lliIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WIlliOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE lliIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE ALA WYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. lliIS OFFICE CAN PROVIDE YOU WIlli INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, TIllS OFFICE MAYBE ABLE TO PROVIDE YOU WIlli INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIDLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, P A 17013 (717) 249-3166 Respectfully submitted, METTE, EVANS & WOODSIDE By: fd......: ames H. McElwain Jr., Sup. Ct. J.D. No. 99304 340 I North Front Street P. O. Box 5950 Harrisburg, P A 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: May 24, 2005 CERTIFICATE OF SERVICE I certify that I am this day serving a copy of the foregoing Notice of Intent to Take Default Judgment upon the person( s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Robert L. Pham 210 West Locust Street Enola, P A 17025 Respectfully submitted, METrE, EVANS & WOODSIDE By: ~-"-rlJ.~~1 es H. McElwain Jr Esquire Sup. Ct. I.D. No. 99304 340 I North Front Street P. O. Box 5950 Harrisburg, P A 1711 0-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Commerce BanklHarrisburg, N.A. Date: May 24, 2005 . . ". f r , , ~ ~ . . . 11)1'1~ ~ I ill;;; ~ I Ifjl~ 0 I ~.~~I:::; 'Il j r'~~"~"'!',~~:;; 1:../) )....~.~. .~~ N .1~ ': ~1"'''1 '. . '.. .::0 !l'::/?-~ a:~ 1--:0 ? l<n - '" 2 :: QJ' il,y. x :JJ~~ Q) CIl ~ en _LO E"'N ::10 mol'- .co..... a.....J . - <( ....J"'a. CIl t:::> - Ql:>.!!! ..coo 0..... C O::NW r.l >:I .. z 1/l 0 >:I 0 l- . ;: ~ . Q <( ~ 0 ~ 0: ~ 0: " 0 <( I- L oJ . 0 0: I- D ~ 0 I- Z . '* <( D U 0 <( oJ . 0: X L 1/l <( ~ L 0 l': z ~ z . .; 0 Z I- 0: ~ iii 0: 0: 0 ~ 0 0 ~ . r.l . /: z . ~ L <( 0 i r.l 0 0: 0: . <( ~ L ~ Z <( r.l ~ Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA COMMERCE BANKIHARRISBURG, N.A., v. Docket No. 05-1939 Civil Term ROBERT L. PHAM and NAOMI PHAM, Defendants TO: Naomi Pham 21 0 West Locust Street Enola, P A 17025 DATE OF NOTICE: May 24,2005 IMPORTANT NOTICE YOU ARE IN DEF AUL T BECAUSE YOU HAVE FAILED TO ENTER A WRITTEN APPEARANCE PERSONALLY OR BY A ITORNEY AND FILE IN WRITING WITH THE COURT YOUR DEFENSES OR OBJECTIONS TO THE CLAIMS SET FORTH AGAINST YOU. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAYBE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THA T MAY OFFER LEGAL SERVICES TO ELIGffiLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association 32 South Bedford Street Carlisle, P A 17013 (717) 249-3166 Respectfully submitted, METTE, EVANS & WOODSIDE By: d.~Il.~~1 ~ames H. McElwain ., Esquire Sup. Ct. LD. No. 99304 340 I North Front Street P. O. Box 5950 Harrisburg, P A 1711 0-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Date: May 24, 2005 --""-~- . ~m';-;-;;-;-;; . .~- In~ ;:..: I !II~ "" i 11= ' ~I ....; 0 i ~l~l,,; III I ,,~IJ;o:w,-.-~. r.'" r . '" .-'" ~.( }" ..... .~;-.. N-) ~.., i~ . ,. '. .I"" . ~".... c..o ; ~~: :.S.(, ~ '-() 0 (JJ ;:. ~ fo1 ~ .. " ill 0 ~ 0 ti ~ ~ 0 0 .. 0 ~ '" ~ '" e 0 l- ll. ~ ~ 0 '" I- ~ !: oIj 0 !( " 0 u 0 ~ < ill ~ ~ '" " ll. < >- .. 0 ~ " .. :t m i '" 0 '" ~ ci '" iii :> 0 0 Ii. m ~ ~ fo1 .. " ~ .. ;; ii iii 0 '" '" . < ~ II. " :t < ~ -------- _.,,--- -~- ~ - Q) II! - en _10 f/lN ::10 Eor- 0..- 1Il..J .<:-<( o..~o.. 'ES m 000 11I..- C ZNW CERTIFICATE OF SERVICE I certifY that I am this day serving a copy of the foregoing Notice of Intent to Take Default Judgment upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail at Harrisburg, Pennsylvania, with first-class postage, prepaid, as follows: Naomi Pham 210 West Locust Street Enola, P A 17025 Respectfully submitted, METTE, EVANS & WOODSIDE By: i .,j/~~ I!ames H. McElwain J ., Esquire Sup. Ct. LD. No. 99304 340 I North Front Street P. O. Box 5950 Harrisburg,PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Commerce BanklHarrisburg, N.A. Date: May 24, 2005 424937vl CERTIFICATE OF SERVICE I, James H. McElwain, Jr., Esquire, hereby certify that on June 8, 2005 I caused a true and correct copy of the foregoing Praecipe to be served on the following individuals by United States Mail, first class, postage prepaid, addressed as follows: Robert L. Pham 210 West Locust Street Enola, PA 17025 Naomi Ph am 210 West Locust Street Enola, PA 17025 By: 42586Ov\ l.~~~ \) \:b. 'i Q ~_ "'Q 0 8 <;; lfl ~ ~ ~ ~ -4- f7 --1- r ("l ~ Q. ~,; = <~ <J" :?." ':"'~ <- c.: f'n~~ .-," "'- :<3q , a:> g(l :,,':/'l"\ P' ./ :!J ::.~ YC) - 61"0 c~ - A ?;~\ .' ~ .r:- -'- t..n .-:; - James H. McElwain, Jr., Esquire Mette, Evans & Woodside 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff Commerce Bank/Harrisburg NA Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA COMMERCE BANK/HARRISBURG, NA, v. ROBERT L. PHAM and NAOMI PHAM, Docket No. 05-1939 Civil Term Defendants NOTICE OF ENTRY OF DEFAULT JUDGMENT To: Robert L. Pham and Naomi Pham, Defendants You are hereby notified that on June 8, 2005, Default Judgment has been entered against you in the amount of $29,359.04, plus continuing variable interest charges and late fees as provided in the loan documents, and all reasonable costs and attorneys fees in the above-captioned case. Date:....J.....)P J1; ;)60.S ty I hereby certify that the name and address of the proper persons to receive this notice are: Robert L. Pham and Naomi Pham 210 West Locust Street Enola, PA 17025 mes H. McElwain, Attorney for Plaintiff James H. McElwain, Jr., Esquire Mette, Evans & Woodside 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Commerce Bank/Harrisburg, NA COMMERCE BANK/HARRISBURG, NA 100 Senate Avenue Camp Hill, PA 17011 Plaintiff IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA v. Docket No. 05-1939 Civil Term ROBERT L. PHAM and NAOMI PHAM 210 West Locust Street Enola, PA 17025 Defendants PRAECIPE FOR SATISFACTION OF JUDGMENT TO THE PROTHONOTARY: Please mark the judgment satisfied in the above-capHoned action. Respectfully submitted, Mette, Evans & Woodside By: 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Date: July 8, 2005 Attorneys for Plaintiff CERTIFICATE OF SERVICE; I hereby certify that I am this day serving a copy of the foregoing document upon the person(s) and in the manner indicated below, which service satisfies the requirements of the Pennsylvania Rules of Civil Procedure, by depositing a copy of same in the United States Mail, with first-class postage, prepaid, as follows: Robert L. Pham 210 West Locust Street Enola, PA 17025 Naomi Pham 210 West Locust Street Enola, PA 17025 Respectfully submitted, Mette, Evans & Woodside By: . ? -~ J es H. McElwain, Jr., Es Ire up. Ct. I.D. No. 93304 3401 North Front Street P. O. Box 5950 Harrisburg, PA 17110-0950 (717) 232-5000 - Phone (717) 236-1816 - Fax Attorneys for Plaintiff, Date: July 8, 2005 427965vl ...,., ~:;, q. ~~, \\'\~ -Cl,q ::>~~ l.) '-:::.l,.\'\ ~'\.~ ~1 ".."')~;J (:;:,.~~ .\~~~ -;-1j '.;<:. .-- ;; Q ~; ,.,> .a, V' ~ r- -- I"-' "') "