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HomeMy WebLinkAbout14-7016 rye'4 ` J 'F1 �F� 1 �^ v HENRY & BEAVER LLP By: Marc A. Hess Identification No. 55774 937 Willow Street P.O. Box 1140 Lebanon, PA 17042-1140 (717) 274-3644 MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. —��/ fav No. , TIMOTHY J. HOGG and JANA M. HOGG, Defendants CONFESSION OF JUDGMENT Pursuant to the authority contained in the Warrant of Attorney, a copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against Defendants as follows: Principal Sum Due - $ 211,721.77 Interest to 11/18/2014 - 1,649.32 Late Fees to 11/18/2014 - 513.10 Attorney's Commission (10% of unpaid principal and interest) - 21,337.11 Total - $ 235,221.30 Together with interest which continues to accrue after November 18, 2014, and after entry of judgment at the contract rate ($27.94 per diem), additional late fees as may 00� a 0,0�J��ff7 Sys 9 i2v 3) LIIs,? accrue at the contract rate, cost of maintaining and preserving Plaintiff's collateral and costs of suit. HENRY & BE AV RL P By: MAAC A- I.D. #55774 Attorney for Defendants Prothonotary 2 - Jr HENRY & BEAVER LLP By: Marc A. Hess Identification No. 55774 937 Willow Street P.O. Box 1140 Lebanon,-PA 17042-1140 (717) 274-3644 MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. No. Jq- 76( � ov, TIMOTHY J. HOGG and JANA M. HOGG, Defendants COMPLAINT CONFESSION OF JUDGMENT Plaintiff files this Complaint pursuant to Pa. R.C.P. No. 2951(b) for judgment by confession and avers the following: 1, The Plaintiff is Mid Penn Bank with an office located at 5500 Allentown Boulevard, Harrisburg, Pennsylvania 17112. 2. The Defendants, Timothy J. Hogg and Jana M. Hogg, individually and jointly, are adult individuals last known to reside at 322 Equus Drive, Camp Hill, Cumberland County, Pennsylvania 17011 3. Attached hereto as Exhibit "A" is a true and correct copy of a Promissory Note in the original principal amount of Two Hundred Seventy Thousand Dollars ($270,000.00), dated, executed and delivered by Defendants to the Plaintiff on or about December 29, 2008 (the "Note"). 4. Attached hereto as Exhibit "B" is a copy of the Forbearance, Modification and Guaranty Agreement between Plaintiff and Defendants dated June 24, 2013 (the "Forbearance Agreement"). 5. The Note and Forbearance Agreement have not been assigned. 6. Judgment has not been entered on the Note or Forbearance Agreement in any jurisdiction. 7. Default was made by the Defendants in their failure to pay the loan evidenced by the Note and Forbearance Agreement in a timely fashion and failure to pay real estate taxes due and owing on the Real Property described hereinbelow and pledged as collateral securing the Note and indebtedness confirmed and reaffirmed by the Forbearance Agreement for tax years 2012 and 2013, whereby the entire sum is in default and immediately due and payable. 8. In order to secure payment of the Note, Defendants made, executed and delivered to Plaintiff a real estate mortgage dated December 29, 2008, recorded January 5, 2009 in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania (the "Recorder's Office") at Instrument No. 200900261, and as subsequently modified by that Mortgage Modification agreement dated, executed and delivered October 4, 2011, recorded October 6, 2011 in the Recorder's Office at 2 - Instrument No. 201127782 (collectively the "Mortgage"), conveying to Plaintiff a security interest in the real estate commonly known and numbered as 322 North Front Street, Wormleysburg, Cumberland County, Pennsylvania 17043 (the "Real Property"). Judgment entered hereby on the Note will relate back to the date of the original Mortgage for lien priority as it relates to the Real Property. 9. As a consequence of the foregoing and pursuant to the Warrant of Attorney in the Note, Defendants are liable to Plaintiff as follows: Principal Sum Due - $ 211,721.77 Interest to 11/18/2014 - 1,649.32 Late Fees to 11/18/2014 - 513.10 Attorney's Commission (10% of unpaid principal and interest) - 21,337.11 Total - $ 235,221.30 Together with interest which continues to accrue after November 18, 2014, and after entry of judgment at the contract rate ($27.94 per diem), additional late fees as may accrue at the contract rate, cost of maintaining and preserving Plaintiff's collateral and costs of suit. 10.Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. WHEREFORE, Plaintiff demands judgment in the sum of: Principal Sum Due - $ 211,721.77 Interest to 11/18/2014 - 1,649.32 Late Fees to 11/18/2014 - 513.10 Attorney's Commission (10% of unpaid principal and interest) - 21,337.11 Total - $ 235,221.30 Together with interest which continues to accrue after November 18, 2014, and after - 3 - entry of judgment at the contract rate ($27.94 per diem), additional late fees as may accrue at the contract rate, cost of maintaining and preserving Plaintiff's collateral and costs of suit, as authorized by the Warrant of Attorney appearing in the Note. HENRY LLP By: 4- M C . S I. . #55774 937 Willow Street P.O. Box 1140 Lebanon, PA 17042-1140 (717) 274-3644 Attorney for Plaintiff - 4 - t MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. No. TIMOTHY J. HOGG and JANA M. HOGG, Defendants AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA : : ss. COUNTY OF DAUPHIN Bonnie Berkoski, Asset Recovery Manager, of Mid Penn Bank, being duly sworn according to law, deposes and says that she has authority to sign this Affidavit on behalf of Mid Penn Bank and that the facts set forth in the foregoing Complaint are true and correct to the best of her knowledge, information and belief; and that the copies of the Promissory Note, Exhibit "A" and Forbearance, Modification and Guaranty Agreement, Exhibit "B", attached to the Complaint, are true and correct copies of the originals which are held in the files of the Plaintiff and which were executed and delivered by the Defendants to Plaintiff. MID PENN BANK By: Bonnie Berkoski Asset Recovery Manager Sworn to and subscribed to before me this_�day of 2014. COMMONWEALTH OF PENNSYLVANIA Notarial Seal /( Kelly Kauffman, Notary Public Notary Public Lower Paxton Twp., Dauphin County My Commission Expires June 3, 2017 MEMBER,PENNSYLVANIA ASSOCIATION OF NOTARIES MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. No. TIMOTHY J. HOGG and JANA M. HOGG, Defendants AFFIDAVIT AS TO NON-MILITARY SERVICE AND CERTIFICATION OF LAST KNOWN ADDRESS OF DEFENDANTS AND PLAINTIFF COMMONWEALTH OF PENNSYLVANIA ss. COUNTY OF DAUPHIN Before me the undersigned authority, personally appeared Bonnie Berkoski, Asset Recovery Manager, of Mid Penn Bank, who being duly sworn according to law, deposes and says that upon reasonable investigation to the best of her knowledge and belief the Defendants are not in the active Military or Naval Service of the United States of America and that the last known address of said Defendants is as follows: 322 Equus Drive, Camp Hill, Pennsylvania 17011. The address of the above Plaintiff is 5500 Allentown Boulevard, Harrisburg, Pennsylvania 17112. MID PENN BANK By. ~ Bonnie Berkoski Asset Recovery Manager Sworn to and subscribed to before me this z t day of 2014. COMMONWEALTH OF PENNSYLVANIA Notarial Seal Kelly Kauffman, Notary Public 6 Lower Paxton Twp., Dauphin County Notary Public My Commission Expires June 3, 2017 MEMBER, KUNSYIVANIA ASS(MATION OF NOTARIES PROMISSORY NOTE ::.: ::.. .: ::::% :::::c,:.:;:;•:,. .. :GI.: .::.?%%c;':ii:::>::�, '.::::`i? :":"J':.?::.,:;�::::;:::''::'.;;;`::`::> :ii".:,:;': ..:,:,:.:...:`: :i :>:'.::''...'`::::::.`<::::;E:. ::,;:.t:.. ...:..:.:........ at::::::::.:.:.:.::.:. .c :......:.:..................................... ...................................:......:...:...:...........tY......................_ Qa. ....Nc�...........................sari_r..Kofi.............................A ? unt...............Qcer... ..:1..> n t els 27. :::..::::.-:.. ....::.:::::.- References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing'***"has been omitted due to text length limitations. Borrower: Timothy J Hogg Lender: Mid Penn Bank Jana M.Hogg ' Camp Hill Office 322 Equus Drive 2101 Market Street Camp Hill, PA 17011 Camp Hill,PA 17011 Principal Amount: $270,000.00 Initial Rate: 5.500%. Date of Note: December 29, 2008 PROMISE TO PAY. Timothy J Hogg and Jana M. Hogg ("Borrower") jointly and severally promise to pay to Mid Penn Bank("Lender"), or order,in lawful money of the United States of America,the principal amount of Two Hundred Seventy Thousand&00/100 Dollars($270,000.00), together with interest on the unpaid principal balance from December 29,2008,until paid in full. PAYMENT. Subject to any payment changes resulting from changes in the Index,Borrower will pay this loan in accordance with the following payment schedule: . The loan shall be payable over a term of twenty(20) years. Commencing January 29, 2009, the loan shall be payable in twelve(12) consecutive monthly Installments,including principal'and Interest,in the'amount of$1,870.00,based upon an amortization of twenty(20) . years, with all subsequent..payments:due on the same day of each month thereafter. Interest shall be calculated at a rate of one and one-half(1.50%)above the Wall Street Journal Prime Rai-(Index"),currently at four(4.00%)percent,resulting In an initial rate of five and one-half(5.50%) percent per annum,with a floor of fey, (4.00%)percent. The interest rate change will not occur more often than each month, on the first business day of the month. The monthly Installments shall be reviewed annually and'reset based upon the then outstanding principal balance,the remaining'amortization perlod,-and the Interest rate, In an amount sufficient to maintain the original amortization schedule. All outstanding principal,all accrued and unpaid interest,and any other charges as may have been incurred will be due and payable in full on or before December 29,2028. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest;then to principal; then to any unpaid collection costs; and.then to any late charges. The annual interest rate for this Note is computed on a 365/360 basis;that is,:.by applying the ratio.of the•.annual,interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance:is outstanding.. Borrower will pay Lender at Lender's address shownabove or at such other place as Lender may designate In writing.:. „ VARIABLE INTEREST HATE.'The interest rate on this Note is subject to change from time to time based on changes in an independent indexwhich is the Prime Rate as quoted in the Wall Street Journal(the'Index'). The Index is not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan,Lender may designate a substitute index after notifying Borrower.-Lender will tell Borrower the 1 current Index rate upon Borrower's request. The interest rate change will not occur more often than each month, on the first business day of the month. Borrower 6ndelrstands that Lender may make loan's based on other rates as well. The Index currently Is 4.000%per annum. The interest. rate to be applied to the unpaid.principal balance during this Note will be at a rate of 1.500 percentage points over the Index,adjusted if necessary'for l. any minimum and maximum rate limitations described below, resulting in an initial rate of 5.500%per annum. NOTICE: Under no circumstances will the interest rate on this Note be less than 4.000%per annum or more than the maximum rate allowed by applicable law. Whenever increases occur in the interest rate,Lender,at its'bption,may do one or more of the following: (A) increase Borrower's payments to ensure Borrower's loan will pay off by its original final maturity date, (B) increase Borrower's payments to cover accruing interest, (C) increase the number of Borrower's payments,and.(D) continue Borrower's payments at the same amount and increase Borrower's final payment. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment(whether voluntary or as a result of default), except as otherwiserequired by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than-it is due:.:Early.payments will not,unless agreed to by Lender in writing,relieve Borrower of Borrower's obligation to continue to make payments under the payment schedule.,Rather,early payments will reduce.the principal balance due and"may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked"paid in full',"without recourse",or similar language: If'Borrower sendssuch a payment,tender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts,including any check or other payment.instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with'other cohditions or limitation's or as full satisfaction of a disputed amount must be mailed or delivered to: Mid Penn Bank,Camp Hill Office,2101 Market Street,Camp Hill, i PA 17011. LATE CHARGE. if a payment is 15 days or more late;Borrower will be charged 10.000%of the regularly scheduled payment or$25.00,whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity,the interest rate on this Note shall be increased by adding a 5.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. If judgment is entered.in connection with this Note,interest will continue to accrue after the date of judgment at the rate`in effect at the time judgment is entered. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law. DEFAULT. Each of the following shall constitute an event of default("Event of Default")under this Note: Payment Default. Borrower fails to make any payment when due under this Note. Other Defaults. Borrower fails'to comply with or to perform any other term,obligation,covenant or condition contained in this Note or in any of the related'documents or to comply with or to,perform any term;obligation, covenant or condition contained in any other agreement between Lender and Borrower. False Statements. Any warranty,representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect,either now or at the time made or furnished or becomes false or misleading at any time thereafter. Death or Insolvency. The death of Borrower or the dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for,any part of Borrower's property, any,assignment for.the benefit of creditors, any type of creditor workout,or the commencement of any proceeding under any bankruptcy or insolvency laws by or-against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collater EXHIBIT PROMISSORY NOTE ' Loan No: 500049846 (Continued) Page 2 includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding,in an amount determined by Lender,in its sole discretion,as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser,surety,or accommodation party of any of the indebtedness or any guarantor,endorser, surety,or accommodation party dies or becomes incompetent,or revokes or disputes the validity of,or liability under,any guaranty of the indebtedness evidenced by this Note. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Insecurity. Lender in good faith believes itself insecure. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due,and then Borrower will pay that amount. ATTORNEYS' FEES;EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes,subject to any limits under applicable law, Lender's attorneys'fees and Lender's legal expenses,whether or not there is a lawsuit, including attorneys'fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law,Borrower also will pay any court costs,in addition to all other sums provided by law. JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial In any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. GOVERNING LAW. This Note will be governed by federal law applicable to Lender and,to the extent not preempted by federal law,the laws of the Commonwealth of Pennsylvania without regard to its conflicts of law provisions. This Note has been accepted by Lender in the Commonwealth of Pennsylvania. CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Cumberland County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable.law, Lender reserves a right of setoff in all Borrower's accounts with Lender(whether checking,savings,or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender,to the extent permitted by applicable law,to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph. COLLATERAL. Borrower acknowledges this Note is secured by the following collateral described in the security instruments listed herein: (A) a Mortgage dated December 29,2008,to Lender on real property located in Cumberland County,Commonwealth of Pennsylvania. (B) an Assignment of All Rents to Lender on real property located in Cumberland County,Commonwealth of Pennsylvania. COMMITMENT LETTER.The terms and conditions of a Commitment Letter dated November 7,2008, between Lender and Borrowers, together with any modifications and amendments,are hereby incorporated into this Note as if the Commitment Letter were restated herein in its entirety. SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs,personal representatives,successors and assigns,and shall inure to the benefit of Lender and its successors and assigns. NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information about your account(s)to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies)should be sent to us at the following address:Mid Penn Bank,Camp Hill Office,2101 Market Street,Camp Hill,PA 17011. GENERAL PROVISIONS. If any part of this Note cannot be enforced,this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Each Borrower understands and agrees that, with or without notice to Borrower, Lender may with respect to any other Borrower (a)make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including increases and decreases of the rate of interest on the indebtedness; (c)exchange, enforce,waive,subordinate,fail or decide not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling security agreements, as Lender in its discretion may determine; (e)release,substitute,agree not to sue,or deal with any one or more of Borrower's sureties,endorsers,or other guarantors on any terms or in any manner Lender may choose; and (f) determine how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend(repeatedly and for any length of time)this loan or release any party or guarantor or collateral;or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made, The obligationsunder this Note are joint and several. if any portion of this Note is for any reason determined to be unenforceable,it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA,OR ELSEWHERE,TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED,CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT(10%)OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING,THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PROMISSORY NOTE Loan No: 500049846 (Continued) Page 3 PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: �� 11 X:::: (Seal) X 1 r. j 1 : (Seal) Timothy J Hogg Ja Hogg LASER PRO LAnGng,Ver.5.35.00.004 Capr.Harland Rnemlal Snlallcns,Inc.1997,2008. All flights Reserved. -PA PACFALPL\020.FC TR-5706 PR-SECOTERM FORBEARANCE MODIFICATION AND GUARANTY AG.REEMrNT THIS FORBEARANCE, MODiFICATI ND GWANTY AGREEMENT(the Agreement") is made and entered into this, day of 2013, and intended to set forth the agreement and understandings by and between Mid Penn Bank (hereinafter the"Bank"); Hogg Properties, LLC (hereinafter the "Company"); and Timothy J. Hogg and Jana M. Hogg,his wife(hereinafter individually and jointly the"Hoggs") with respect lo the following extensions of credit made by the Bank to or for the benefit of the Company and/or Hogg pursuant to the following commercial credit facilities: 1. Commercial Loan No. 500048087 in the original principal amount of One Million Eight Hundred Eighty-Four Thousand Dollars($1,884,000.00)evidenced by a Promissory Note dated, executed and delivered to the Bank on or about July 31,2008, which has been amended and restated pursuant to the terms of three (3) Change in Terms Agreements. The first in the amount of One Million Seven Hundred Eighty-Eight Thousand Three Hundred Eighty-Eight Dollars and Twenty-One Cents ($1,788,388.21)dated, executed and delivered to the Bank on or about September 24,2010, the second in the amount of One Million Seven Hundred Forty-Seven Thousand One Hundred Seventy-Five Dollars and Twenty-Seven Cents ($1,747,175.27)dated, executed and delivered to the Bank on or about March 23. 2011 and the third in the amount of One Million Six Hundred Eighty-Eight Thousand Two Hundred Fifty Dollars and Fifty-One Cents ($1,688,250.51) dated. executed and delivered to the Bank on or about June 28, 2012 (collectively the"Change in Terms Agreements"). The Note dated July 31,2008 and the Change in Terms Agreements shall hereinafter collectively be referred to as the "Company Note". The Company Note is secured by a Mortgage in and upon the Company's real property commonly known and numbered as 196 York:Haven Road, Etters,Newberry Township, York County, Pennsylvania, Parcel No. 39-000-PH-0024-00000(the"Etters Real Property"), which Mortgage is dated July 31, 2008 and was recorded August 6, 2008 in the Office of the Recorder of Deeds in and for York County, Pennsylvania(the "Recorder's Office") at Book 1979, Page 8014 and as identified as Instrument 2008050806 (the "Etters Mortgage"). As well, the Company granted the Bank an Assignment of Rents as to the Etters Real Property which is recorded in the Recorder's Office at Book 1979, Page 8027 and is identified as Instrument 2008050807 (the"Etters Assignment of Rents"). The Company Note is guaranteed pursuant to the terms of Commercial Guarantees dated,executed and delivered by the Hoggs to the Bank on or about July 31, 2008 unconditionally guaranteeing repayment in full of all of the Company indebtedness to the Bank' (the"Hogg Guarantees"). The Hogg Guarantees are secured by a fourth Mortgage in and upon their real property commonly known and numbered as 322 North Front Street, Worrnleysburg, Cumberland County, Pennsylvania 17043, Parcel No. 47-19-1588-144 (the"Wormleysburg Real Property"), which Mortgage is dated July 12, 2012,and was recorded August 2, 2012 in the Recorder's Office at.Instrument 201223216 (the"Guarantee Mortgage"). The Company Note, Etters Mortgage, Etters Assignment of Rents,.Hogg Guarantees and the Guarantee Mortgage and all loan documents associated therewith shall hereinafter be referred to the"Company Loan Documents"and the obligations and indebtedness evidenced and secured thereby shall hereinafter be referred to as the "Company Loan". [ EXHIBIT 2. Commercial Loan No. 500049846 as evidenced by a Promissory Note in the original principal amount of Two Hundred Seventy Thousand Dollars ($270,000.00) dated, executed and delivered to the Bank by the Hoggs on or about December 29, 2008 (the"Hogg Note"). The Hogg Note is secured by a first Mortgage in and upon the Wormleysburg Real Property which is dated December 29 2008, and was recorded January 5, 2009 in the Recorder's Office at Instrument No. 200900261 (the "Wor►nleysburg Mortgage"). As well, the Hogg Note is secured by an Assignment of Rents as to the Wormleysburg Real Property which is dated, executed and delivered to the Bank on or about December 29, 2008,and was recorded January 5., 2009 in the Recorder's Office at Instrument 200900262 (the"Wormleysburg Assignment"). Both the Wormleysburg Mortgage and Wormleysburg Assignment have been modified pursuant to the terms of a Mortgage Modification dated, executed and delivered to the Bank on or about October 4, 2011 and an Assignment of Rents Modification Agreement bearing the same date,which were been recorded in the Recorder's Office on October 6,2012 at Instrument Nos.201 127782 and 201127783 respectively(the"Modifications"). The Hogg Note,Wormleysburg Mortgage, Wormleysburg Assignment, Modifications and all loan documents associated therewith shall hereinafter be referred to as the"Hogg Loan Documents"and the obligations and indebtedness evidenced and secured thereby shall hereinafter be referred to as the"Hogg Loan". WITNESSETH THAT: WHEREAS,on and as of June 13, 2013. the Company and Hoggs are indebted to the Bank as follows on account of principal, interest and late fees: A. Company Loan No. 500048087 Principal - $ 1.670,713.37 Interest- 15,583.95 Late Fees- 41,101.09 Satisfaction Fee - 78.50 Total - $ 1,727,476.91 Per Diem -$197.24 B. Hogg Loan No. 500049846 Principal - $227,138.90 Interest- 690.34 Late Fees - 1,074.90 Satisfaction Fee - 77.00 Total - $ 228.981.14 Per Diem - $29.97 - 2 - The Company Loan Documents and Hogg Loan Documents may hereinafter collectively be referred to as the "Loan Documents''and the Company Loan and Hogg Loan may hereinafter collectively be referred to as the"Loans Each, together with interest which continues to accrue at the contract rate, additional late fees which may accrue at the contract rate, Bank costs, as well as the Bank's actual attorney's fees and costs incurred ("Attorney's Fees"), and such additional Attorney's Fees as may continue to accrue shall hereinafter be individually and collectively referred to as the"Obligations and indebtedness"; and WHEREAS, the Loans are in default for, among other, failure of the Company and the Hoggs to make contractual payment of installments of principal and interest when due, failure to meet demand for payment in full oil the Company Loan and failure to pay real estate taxes due on the Etters Real Property and Wormleysburg Real Property in a timely fashion, and as a result thereof the Loans are currently due and payable in full and the Bank has properly demanded the entire unpaid principal balance of the Obligations and Indebtedness to be due and immediately paid; and WHEREAS, as a result of the Company's and Hoggs' defaults,the Bank has confessed judgments against the Company in an action captioned Mid Penn Bank vs. Hogg Properties, LLC in the Court of Common Pleas of York County, Pennsylvania Civil Action Law No. 13-NO- 003511-30 (the"Company Confessed Judgment")and against the Hoggs in an action captioned Mid Penn Bank v. Timothy J. Hogg and Jana M. Hogg in the Court of Common Pleas of Cumberland County, Pennsylvania Civil Action Law No. 13-3150 Civil (the"Hogg Confessed Judgment"). The Company Confessed Judgment and Hogg Confessed Judgment shall hereinafter be referred to collectively as the"Confessed Judgments". WHEREAS, the Company and the Hoggs have requested that the Bank forbear for a period of time from pursing collection and requiring immediate payment in full of the Obligations and Indebtedness; and WHEREAS, upon the terms and conditions contained herein, the Bank is prepared, for a limited period of time, to forbear from the exercise of such rights and remedies, including the exercise of the right to pursue collection remedies and require immediate payment of the Loans and to grant an extension of time to the Company and the Hoggs in which to repay the same; and WHEREAS, this forbearance by the Bank from the current and present exercise of its rights and remedies as provided for in this Agreement shall result in direct and tangible benefit to the Company and the Hoggs. NOW, THEREFORE, in consideration of the foregoing premises and agreements and the undertakings contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows: - 3 - i 1. Guaranty - The Company and the Hoggs do hereby unconditionally guaranty unto the Bank, its successors and assigns, and do hereby promise to make the prompt and punctual payment of the Obligations and Indebtedness, as well as any and all other indebtedness and/or obligations of each other to the Bank, when due pursuant to the Loan Documents and this Agreement and/or any and al I other loan documents or agreements between the Company, the Hoggs and the Bank, whether by acceleration or otherwise and do hereby consent to and agree to be bound by all terms and conditions of the Loan Documents referred to herein. Further, the Company and the Hoggs do hereby pledge, ratify, confirm and reaffirm, its/his/her liability to pay any and all indebtedness and obligations of the other to the Bank. The Company and the Hoggs do agree that the Bank shall be under no obligation to pursue the Bank's rights against the Company or the Hoggs or any collateral of the Company or the Hoggs securing the Loans or various obligations to the Bank or against any other obligor,or any collateral, in any particular order. The Company and the Hoggs obligations to pay the Loans and the Obligations and .Indebtedness is absolute and unconditional and it/he/she do hereby agree to pay the Loans, Obligations and Indebtedness pursuant to the terms of the Loan Documents and this Agreement just as if it/he/she were the primary obligor. 2. Acknowledgements by the Company and the I-foggs- The Company and the Hoggs agree, acknowledge, represent and warrant as follows: A. Acknowledgment of.Recitals -The recitals to this Agreement are true and correct in all respects and are incorporated herein as operative provisions of this Agreement. B. Acknowledgment of Default-That on and as of the date hereof the Loans are in default and due and payable in full and the Company and the Hoggs are indebted to the Bank with respect to the Obligations and Indebtedness, including, but not limited to principal, interest, related costs and fees in the amounts set forth hereinabove and together with the Bank's Attorney's Fees and that all such amounts remain outstanding and unpaid and are absolutely and unconditionally due and payable in full without offset;deduction or counterclaim of any kind or character whatsoever. C. Acknowledgment of Bank's Right to Demand- Prior to and as of the date hereof, the Bank had and has the right to make demand for payment in full upon Company and/or the Hoggs and require the Obligations and Indebtedness of the Loans to be immediately paid in full. The Company and the Hoggs agree that all such right to demand payment in full continues in full force and effect and is not impaired or diminished except as,and only to the extent modified by this Agreement,and the Company and the Hoggs waive any and all further notice, presentment, notice of dishonor or dernand with respect to the Loans, Obligations and Indebtedness. D. Acknowledement that. Liabilities Continue in .Full .Force and Effect - That the Loan Documents and all liabilities and obligations of the Company and the Hoggs to the Bank shall, except as expressly modified herein during the forbearance period, remain in full force and effect and shall not be released, impaired, diminished or in any other way modified or amended as a result of the execution and delivery of this Agreement and there exists no right of setoff or -4 - recoupment,counterclaim or defense of any nature whatsoever by the Company and/or the Hoggs to the payment of the Loans, Obligations and Indebtedness. E. Acknowledgement that Mortgages and Assignments of Rents Continue in Full Force and Effect- That the Mortgages and Assignments of Rents granted by the Company and/or the Hoggs as security for the Obligations and Indebtedness shall continue in full force and effect and shall remain perfected in accordance with their respective terns from the dates thereof and shall and do secure repayment of all of the Loans, Obligations and Indebtedness owing to the Bank. F. Acknov<rledaement of Obligations and Indebtedness -That on and as of the date hereof, i. The Company and the Hoggs are indebted to the Bank with respect to the principal and interest and related costs and fees in the amounts set forth in the recitals to this Agreement; ii. All such amounts remain outstanding and unpaid; iii. All suchamounts are absolute and unconditionally due and payable in full, without offset; deduction or counterclaim of any kind or character whatsoever. but are subject to increase, decrease or other adjustments as a result of any and all interest, fees and other charges, including, without limitation, Attorney's Fees and costs of collection with are payable to the Bank pursuant to the Loans. G. Acknowledgment that Advances are Terminated - The obligation of the Bank to the Company and the Hoggs to make advances pursuant to any of the Loans which might be in the nature of a line-of-credit have been terminated and the Bank no longer has an obligation and will no longer make advances on any line-of-credit to the Company or the Hoggs even if the Company or the Hoggs make payments to the Bank pursuant to this Agreement and comply in all other respects with this Agreement. H,. Acknowledgement of Confessed Judgmeiits - The Company and the Hoggs acknowledge and�agree that the Confessed Judgments are legal, equitable and proper in all respects and there exists no right to open or strike off the Confessed Judgments and.the Confessed Judgments shall .remain as valid liens during the pendency of this Agreement and hereafter and until the Obligations and Indebtedness is paid in full. It is further acknowledged, understood and agreed that the Bank intends to, and may during the pendency of this Agreement, issue to the Company and the Hoggs the Notice Under Pennsylvania Rule of Civil Procedure 2958.1 of Judgment and Execution Thereon and Notice of Defendants' Rights,and the Company and Hoggs agree to accept service of the same. 1. Acknowledgment of Advice of Counsel -The Company and the Hoggs acknowledge that it/he/she have had an opportunity to review this Agreement with independent - 5 - legal counsel and receive legal advice frorn independent counsel ofits/his/her choosing and selection and that each fully understands the facts and has been fully informed as its/his/her legal rights and obligations by Robert C. May, Esquire, 4300 Carlisle Pike, Camp Hill, Pennsylvania, and each acknowledges and accepts that this Agreement is fair and equitable and that it is being entered into freely and voluntarily and that the execution of this Agreement is not the result of any duress or undo influence and it is not the result of any collusion or improper or illegal agreement or agreements. 3. Forbearance by the Bank A. Forbearance-At the request of the Company and the Hoggs,and for good and valuable consideration, the Batik agrees to forebear from the exercise of its rights and remedies, whether at law, in equity, by agreement or otherwise available to the Bank and refrain from issuing demand for immediate payment in full of the Loans, Obligations and Indebtedness,at this time. Forbearance shall continue until: i. December 31, 2013; it. The time at which the Company or the Hoggs fail to comply in any respect with its/his/her:respective covenants to Bank as set forth in Section 4; iii. The occurrence of any event of default under any of the Loan .Documents, other than a continuation of the events of default set forth in the recitals herein during the Forbearance Period. The time beginning on the date of this Agreement and terminating on the earliest of such dates as set forth above shall hereinafter be referred to as the "Forbearance.Period'. B. Termination of the Forbearance Period- Upon termination of the Forbearance Period, pursuant to any of the clauses (i)through (iii)of Section 3(A)above, all forbearance deferrals,modifications and indulgences granted by the Bank shall automatically terminate and the Loans shall thereupon be immediately paid in full by the Company or the Hoggs and if the Company or the Hoggs fail to make said payment, in order to collect the sante,the Bank shall thereupon be entitled to exercise any and allrernedies which it tnay have, including, without limitation, those referred to in the recitals of this Agreement, without further notice of any kind. Further,the Company and the Hoggs agree that upon termination of the Forbearance Period, the Bank may proceed to confess judgment upon its/him/her and otherwise take action against the Mortgaged Real Properties and any and all other real or personal property pledged as collateral .for the Loans and the Company and the Hoggs agree to fully cooperated in the same. 4. Covenants of the Company and the Hoggs During the Forbearance Period-At all times during the Forbearance Period and in order to induce Bank to enter into this Agreement and as a condition of.the continuation of the Forbearance Period,the Company and the Hoggs, individually and jointly,covenant and agree as follows: -6 - A. Payment of the Company Loan - During the term of the Forbearance Period the balance due on the Company Loan shall be amortized over a period of twenty (20)years and accrue interest at the rate of three and twenty-five hundredths percent(3.25%) fixed per annum. The Company and/or the Hoggs shall repay the balance due on the Company Loan in six (6) equal and consecutive monthly payments of Nine Thousand Four Hundred Seventy-Seven Dollars($9,477.00) principal and interest beginning with the first(1st)payment due on July 3, 201.3 and continuing on the third (3rd) day of each month thereafter followed by a seventh (7th) and final payment on or before December 31, 2013 of all remaining sums due and owing on the Company Loan, Obligations and Indebtedness, including principal, interest, late fees, Bank fees and costs and Attorney's Fees and Costs. Upon failure to pay the Company Loan in full on or before December 31,2013, the full balance of the Obligations and Indebtedness shall accrue interest at the default rate of eight and twenty-five hundredths percent(8.25%). B. Payment of Hogg Loan - During the term of the Forbearance Period the Company and/or the Hoggs shall pay the Hogg Loan as contractually agreed (as if not accelerated and due and owing in full) and billed by the Bank on or before each payment due date. Further, the Company and/or the Hoggs shall make one(1)final payment on or before December 31, 2013 of all remaining sums due and owing on the Hogg Loan, Obligations and Indebtedness, including principal, interest,, late fees,Bank fees and costs and Attorney's Fees and Costs. Upon failure to pay the Hogg Loan in full on or before December 31, 2013,the full balance of the Obligations and Indebtedness shall accrue interest at the default rate of eight and twenty-five hundredths percent(8.25%). C. Payment of Real Estate Taxes Upon - The Company and the Hoggs acknowledge that the real estate taxes on said real properties are past due for tax years 2011,2012 and 2013 are due or will become due,as well and that such is a continuing event of default under the Loan Documents and the Bank is not waiving such event of default. The Company and the Hoggs shall use its/his/her best efforts to cure this event of default during the Forbearance Period, D. Listing of Etters Real Property for Sale-The Company shall continue to retain its broker(NAI/CIR) which has listed the Etters Real Property for sale for its fair market value during the Forbearance.Period. E. Payment of the Bank's Fees and Costs - Upon execution of this Agreement, the Company and/or the Hoggs shall pay one-half(1/2)of the Bank's Fees and costs incurred in this matter, including fees of Bank counsel which are referred to herein as"Attorney's Fees", which Attorney's Fees as of June 15, 2013 total Six Thousand Three Hundred Forty-Nine Dollars and Sixty-Six.Cents ($6,349.66). The second half(1/2)shall be paid on or before July 21,2013. F. Taxes and Insurance - The Company and/or the Hoggs shall at all times keep all taxes and insurance premiums paid current and shall provide Bank with proof of payment of the same upon Bank's request. - 7 - G. Required Reporting - The Company and/or the Hoggs shall meet and comply with all reporting requirements, including, but not limited to those requirements set forth in the Loan Documents and specifically shall provide: i. Prior to signing this Agreement, Bank acknowledges that it has received the 2011 annual federal income tax returns for the Company and the Hoggs; the 2012 federal income tax returns for the Company and the Hoggs shall be delivered to the Bank when complete, but in any event no later than October 15, 2013. ii. Prior to .July 1,2013, personal financial statements for the Hoggs. iii. Prior to signing this Agreement, Bank acknowledges it has received the Rent Rolls listing of all leases for the Etters Real Property and Wormleysburg Real Property, including parties, terms and monthly rental due. iv. After signing this Agreement,. Company and/or the Floggs shall send monthly company prepared financial statements on or before the last day of each month for the Etters Real Property and Wormleysburg Real Property, together with accounts receivable aging and listings and accounts payable aging and listings. V. .Prior to July 1, 2013, a complete, signed and verified list of all assets owned and held by the Company. H, Disposition of Assets-The Company and/or the Hoggs will not liquidate or dissolve the Company (or suffer any liquidation or dissolution), or convey, sell,pledge or otherwise pledge or otherwise transfer or dispose of the Etters Real Property or the Wormleysburg Real Property, which serves as collateral for the Loans outside the normal course of business except with the written consent of the Bank, which consent shall in any event be conditional upon the net proceeds of any such sale being paid to the Bank on account of the Obligations and Indebtedness. 5. Release-The Company and the Hoggs hereby release,acquit, and forever discharge the Bank,and each and every past and present subsidiary, affiliate; stockholder, officer, director, agent, servant, employee, representative, and attorney of the Bank; from any and all claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys'fees) of any kind, character or nature whatsoever, known or unknown,fixed or contingent, which the Company and the Hoggs may have or claim to have now or which may hereafter arise out of or connected with any act of commission or omission of the Bank existing or occurring prior to the date of this Forbearance Agreement or any instrument executed prior to the date of this Forbearance Agreement including, without limitation, any claims, liabilities or obligations arising with respect to the Obligations and Indebtedness evidenced by the Loan Documents,or any other of the aforementioned or related documents. The provisions of this Section 5 shall be binding upon the Company and the Hoggs and shall inure to the benefit of the Bank and its respective successors and assigns. - 8 - G. Further Assurances - Except as expressly provided herein, the Loan Documents shall remain in full force and effect in accordance with their respective terms. Without limiting the generality of the foregoing. nothing herein shall be construed to: A. Impair the validity, perfection of priority of any lien or security interest securing the Loan; B. Waive or impair any rights, powers or remedies of Bank under the Loan .Documents, or the other related documents upon termination of the Forbearance Period; C.- Require Bank to extend the Forbearance Period, or grant additional Forbearance Periods or extend the term of the.Loan.Documents or the time for payment of the Loan.or requireBank to make any loans or other extensions of credit to the Company and the Hoggs after termination of the Forbearance Period. The Company and the Hoggs acknowledge that he/she/they have consulted with counsel and with such other experts and advisors as it has deemed necessary in connection with the negotiation and delivery of this Forbearance Agreement. This Forbearance Agreement shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Forbearance Agreement or any part hereof to be drafted. 7. Future Assurances - The Company and the 17I09gs agree to execute such other and further documents and.instruments as Bank may request to implement the provisions of this Forbearance Agreement and to perfect and to protect the liens and security interests created by the Loan Documents. 8. Entire Agreement-This Forbearance Agreement reflects the entire understanding of the parties with respect to the forbearance herein discussed and supersedes any prior agreements, whether written or oral, in regard thereto. 9• Waiver-This Forbearance Agreement is not intended to operate as, and shall not be construed as, a waiver of any event of default, whether known to the Bank or unknown, as to which all rights of the Bank shall remain reserved. 10. Governing Law - This Forbearance Agreement shall be governed by, and shall be construed in accordance with; the internal substantive laws of the Commonwealth of Pennsylvania without regard to the choice of law principles of such state. 11. WAIVER OF RIGHT TO JURY TRIAL—BANK, THE COMPANY AND THE HOGGS WAIVE TRIAL BY JURY AND CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY A JUDGE OF A COURT OF COMPETENT JURISDICTION. -9 - 12. Counterparts -This Forbearance Agreement may be executed in multiple counterparts, each of which shall be an original and all of which, taken together, shall constitute by one of the same agreement among the parties. 13. Binding Nature - This Forbearance Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 14. Captions- The captions to the Sections and Paragraphs of this Forbearance Agreement are for the convenience of the parties only,and are not a part of this Forbearance Agreement. 15. Time of the.Essence -Time is of the essence under this Forbearance Agreement. 16. Survival -All warranties,representations and covenants made by the Company and the Hoggs herein, or in any other document or instrument delivered by them or on their behalf under or in furtherance of this Agreement shall be considered to be relied upon by the Bank and shall survive the termination of the Forbearance Period and this Agreement. 17. Severability - The provisions of this Agreement are deemed to be severable and the invalidity or unenforceability of any provision shall not affect or impair the remaining provisions which shall continue in full force and effect. 18. CONFESSION OF.JUDGMENT-THE COMPANY AND THE HOGGS HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA,OR ELSEWHERE, TO APPEAR AT ANY TIME FOR THE COMPANY OR THE HOGGS, AFTER DEFAULT UPON ANY OF THE LOANS OR THIS FORBEARANCE AGREEMENT, AND WITH OR WITHOUT COMPLAINT FILED AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST THE COMPANY AND/OR THE HOGGS FOR THE ENTIRE PRINCIPAL BALANCE DUE AND OWING ON THE LOANS AND OBLIGATIONS AND INDEBTEDNESS.AS SET FORTH IN THIS AGREEMENT,AND ALL ACCRUED INTEREST, LATE FEES, COSTS OF MAINTAINING AND PRESERVING THE BANK'S COLLATERAL,TOGETHER WITH COSTS OF SUIT AND COLLECTION AND AN ATTORNEYS'COMMISSION OF TEN PERCENT(10%)OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN ONE THOUSAND DOLLARS ($1,000.00), AND FOR SO DOING THIS AGREEMENT, OR A COPY OF THIS AGREEMENT, SHALL BE SUFFICIENT WARRANT. THE COMPANY AND THE HOGGS AGREE AND UNDERSTAND THAT IN SIGNING THIS FORBEARANCE AGREEMENT AND IN THE GRANTING OF THIS WARRANT IT IS WAIVING IMPORTANT LEGAL RIGHTS, INCLUDING ITS RIG14T TO NOTICE AND HEARING PRIOR TO ENTRY OF A JUDGMENT AGAINST IT/HIM/HER, AND WAIVE ITS RIGHT TO NOTICE AND HEARING PRIOR.TO EXECUTION, LEVY OR GARNISHMENT UPON ITS PROPERTY FOR COLLECTION OF THE DEBT DUE HEREUNDER. THE COMPANY AND THE - 10 - AFFIDAVIT COMMONWEALTH OF PENNSYLVANIA \ ss. COUNTY OF On this A 'day of ,`�t,,:N,- , 2013, before me,the undersigned authority, a Notary Public in and for said County.and State,personally appeared Timothy J. Hogg, Managing Member of Hogg Properties, LLC, and that as such officer being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the Company by himself as Managing Member. IN WITNESS WHEREOF, 1 have hereunto set my hand and official seal. Notary Public COMMONWEALTH10. SEAL SYLVANIA CAROL L.TROXELL,Notary Public New Cumberland Boro.Cumberland Co. MY Commission Expires Dec.27, 2013 AFFIDAVIiT COMMONWEALTH OF PENNSYLVANIA COUNTY OF 2013, before me the undersigned officer, On this '; day of personally appeared Timothy J. Hogg and Jana M. Hogg, his wife,known to me to be the persons whose names are-subscribed to the within instrument,and acknowledged that they executed the same for the purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and official seal. A�S��F PENNSYLVANIA Notary Public COMt�ON�F NOTAr�INk.S�t4otary Public GAR01.1 7ROXElL,Cumben2C 3 New Cumberland EXroes p2-a ec. . r6i CO n 4 HOGGS HAVE REVIEWED THIS PROVISION OF THIS AGREEMENT WITH ITS/HIS/HE.R ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND UNDERSTANDS THE FULL FORCE AND EFFECT HEREOF. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals as of the date first above written. ATTEST: HOGG PROPERTIES, LLC By: Timothy J. Hogg Managing Member WITNESS': Timothy J. Hogg r Jany, . . Hogg ATTEST: MID PENN BANK B _. - y us r Vice Pr t Asset Recovery Manager - I1 - DISCLOSURE FOR CONFESSION OF JUDGMENT Today, June 21-, 2013, the undersigned is signing a Forbearance, Modification and Guaranty Agreement (the "Forbearance Agreement") given this date to Mid Penn Bank:(the "Bank") which guarantees the payment of all amounts owing to the Bank. The Forbearance Agreement obligates the undersigned to pay said amount, plus unpaid interest and costs, to the Bank in the event of any default. The undersigned hereby certifies that my/it's annual income exceeds Ten Thousand Dollars ($10,000.00). A representative of the Bank, or the undersigned's legal counsel has explained to me/it that the Forbearance Agreement which the undersigned is signing, and which have been read in its entirety, contains wording and provisions which permit the Bank to obtain a judgment against the undersigned in any court having jurisdiction over the undersigned or any of the undersigned's assets. The undersigned also understands that the Forbearance Agreement contains provisions by which the undersigned is consenting to the entry of judgment against me/it and that such judgment may be obtained against me/it without the following, all of which has been intentionally, understandingly and knowingly waived: i The right to notice and a hearing; ii The right to reduce or set-off a claim by deducting a claim the undersigned may have against the Bank; iii Release of errors; iv Inquest (being the right to ascertain whether the rents and profits of the undersigned's real estate will be sufficient to satisfy the judgment within seven (7) years); v Stay of execution; and .vi Exemption laws now in force or hereafter to be passed. THE UNDERSIGNED HEREBY CERTIFIES that this Disclosure was completed in full when signed, there being no blanks or other spaces, and that the undersigned has received a copy of this Disclosure at the time of signing. WITNESS: (SEAL) Timothy J. Hogg Sworn c ind subscribed to before me this day of , 2013. Notary. Public COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL CAROL L.TROXELL, Notary Public Now Cumberland Boro.Cumberland Co. My Commission Expires Dec. 27,2013 2 - DISCLOSURE FOR CONFESSION OF JUDGMENT Today, June 21, 2013, the undersigned is signing a Forbearance, Modification and Guaranty_Agreement (the "Forbearance Agreement") given this date to Mid Penn Bank (the "Bank") which guarantees the payment of all amounts owing to the Bank. The Forbearance Agreement obligates the undersigned to pay said amount, plus unpaid interest and costs, to the Bank in the event of any default. The undersigned hereby certifies that my/it's annual income exceeds Ten Thousand Dollars ($10,000.00). A representative of the Bank, or the undersigned's legal counsel has explained to me/it that the Forbearance Agreement which the undersigned is signing, and which have been read in its entirety, contains wording and provisions which permit the Bank to obtain a judgment against the undersigned in any court having jurisdiction over the undersigned or any of the undersigned's assets. The undersigned also understands that the Forbearance Agreement contains provisions by which the undersigned is consenting to the entry of judgment against me/it and that such judgment may be obtained against me/it without the following, all of which has been intentionally, understandingly and knowingly waived: i The right to notice and a hearing; ii The right to reduce or set-off a claim by deducting a claim the undersigned may have against the Bank; iii Release of errors; iv Inquest (being the right to ascertain whether the rents and profits of the undersigned's real estate will be sufficient to satisfy the judgment within seven (7) years); v Stay of execution; and vi Exemption laws now in force or hereafter to be passed. THE UNDERSIGNED HEREBY CERTIFIES that this Disclosure was completed in full when signed, there being no blanks or other spaces, and that the undersigned has received a copy of this Disclosure at the time of signing. WITNESS: (SEAL) Ja M. Hog Sworn{Q and subscribed to before me this day of ' �- 2013. J Notary Public COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL CAROL L.TROXELL, Notary Public New Cumberiand Boro, Cumberland Co. My Commission Expires Dec.27,2013 - 2 - LIMITED LIABILITY COMPANY AUTHORIZATION I, the undersigned Managing Member of Hogg Properties, LLC (the "Company") duly organized and.existing under the laws of the Commonwealth of Pennsylvania hereby certify that the following is a true and correct copy of a certain Authorization duly and unanimously adopted by its Members and in accordance with its Operating Agreement on June 21,.2013,-and that the same has not subsequently been rescinded or modified: WHEREAS, Mid Penn Bank ("Lender") has been requested to refrain from demanding immediate payment in full of the defaulted Loans, Obligations and Indebtedness of the Company and Timothy J. Hogg and Jana M. Hogg (the "Hoggs") to Lender; and WHEREAS, Lender has agreed to do so for a limited period of time in consideration for, among other, the execution and delivery of a Forbearance, Modification and Guaranty Agreement (the "Forbeareance Agreement"); and WHEREAS, it is deemed to be in the best interest and benefit, and in furtherance of the business of the Company that Lender grants such forbearance. NOW, THEREFORE, be it RESOLVED, that Timothy J. Hogg, Managing Member of the Company is hereby authorized and directed, on behalf of the Company, to execute, deliver, and perform such agreements with Lender, including the Forbearance Agreement relating to the obligations and indebtedness of the Company and the Hoggs, whether primary borrower or as guarantor. FURTHER RESOLVED, that this Authorization shall continue in full force and effect until notice to the contrary in writing as duly served on Lender. I further certify that the forgoing Authorization is fully in accord with and pursuant to the Operating Agreement of the Company. IN WITNESS WHEREOF, I have hereunto set my hand and affix the seal of the Company on the 21 st day of June, 2013. HOGG PROPERTIES, LLC Timothy J. Hogg, Managing Member 2 - OFFICE OF THE PROTHONOTARY COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA TO: Jana M. Hogg 322 Equus Drive Camp Hill, PA 17011 MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. TIMOTHY J. HOGG and JANA M. HOGG, Defendants NOTICE Pursuant to Pa.R.C.P. Rule 236 please be advised that judgment by confession in the above proceeding was entered against you on `I , 2014, in the amount of: Principal Sum Due - $ 211,721.77 Interest to 11/18/2014 - 1,649.32 Late Fees to 11/18/2014 - 513.10 Attorney's Commission (10% of unpaid principal and interest) - 21,337.11 Total - $ 235,221.30 Together with interest which continues to accrue after November 18, 2014, and after entry of judgment at the contract rate ($27.94 per diem), additional late fees as may accrue at the contract rate, cost of maintaining and preserving Plaintiff's collateral and costs of suit. Copies of all documents filed are attached hereto. Protho4a � - OFFICE OF THE PROTHONOTARY COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA TO: Timothy J. Hogg 322 Equus Drive Camp Hill, PA 17011 MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. JL/ No. / /- TIMOTHY J. HOGG and JANA M. HOGG, Defendants NOTICE Pursuant to Pa.R.C.P. Rule 236 please be advise at judgment by confession in the above proceeding was entered against you on 2014, in the amount of: Principal Sum Due - $ 211,721.77 Interest to 11/18/2014 - 1,649.32 Late Fees to 11/18/2014 - 513.10 Attorney's Commission (10% of unpaid principal and interest) - 21.337.11 Total - $ 235,221.30 Together with interest which continues to accrue after November 18, 2014, and after entry of judgment at the contract rate ($27.94 per diem), additional late fees as may accrue at the contract rate, cost of maintaining and preserving Plaintiff's collateral and costs of suit. Copies of all documents filed are attached hereto. Prothonota ` L�, � '/' �1", n� HENRY & BEAVER LLP By: Marc A. Hess Identification No. 55774 937 Willow Street P.O. Box 1140 Lebanon, PA 17042-1140 (717) 274-3644 MID PENN BANK, IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW vs. No. q TIMOTHY J. HOGG and JANA M. HOGG, Defendants PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY OF SAID COUNTY: Sir, please enter the appearance of Marc A. Hess, of the law firm of Henry & Beaver LLP, whose address is 937 Willow Street, P.O. Box 1140, Lebanon, Pennsylvania 17042-1140 as attorney for Mid Penn Bank, the Plaintiff in the above- . captioned case. Dated: _ p �,��,� \ , 2014 MAC A. HESS I.D. #55774 Attorney for Plaintiff