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HomeMy WebLinkAbout05-6021I& WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney LD. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. NOTICE CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. aUUS (tea I Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above proceeding and that 248177-I .+ enclosed herewith is a copy of all the documents filed in support of the said judgment. If you have any questions concerning this notice, please call Daniel D. Haggerty,/ squire, at (215) 665-8181. 248177-1 h WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. NOTICE PURSUANT TO 42 Pa.C.S.A. §2737.1 OF RIGHT TO RECOVER ATTORNEY FEES AND COSTS AND PROCEDURE TO FOLLOW TO STRIKE OFF OR OPEN A CONFESSED JUDGMENT TO: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 248177-1 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 Debra Eckstine-Ralph 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 Rodney L. Rager 30 Magnolia Lane Hanover, PA 17331 Pursuant to 42 Pa.C.S.A. 2737.1, you are hereby notified that a debtor who has been incorrectly identified and had a confession or judgment entered against him shall be entitled to costs and reasonable attorney fees as determined by the court. Pursuant to 42 Pa.C.S.A. 2737.1, you are hereby notified of the instructions regarding the procedure to follow to strike off or open a confessed judgment under Pennsylvania Rule of Civil Procedure 2959, which is reproduced in full, on the following page. ,. WEIR Dated: November 16, 2005 Daniel D. Haggerty, 248177-1 Pennsylvania Rule of Civil Procedure 2959 Strikin¢ Off or Opening Judgment; Pleadings; Procedure (a)(1) Relief from a judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open it must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has not stayed execution despite the timely filing of a petition for relief from the judgment and the presentation of prima facie evidence of a defense; and (ii) as provided by Rule 2958.3 or Rule 2973.3. (3) If written notice is served upon the petitioner pursuant to Rule 2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. (c) A party waives all defenses and objections which are not included in the petition or answer. (d) The petition and the rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending disposition of the application to strike off the judgment. If evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment. (f) The lien of the judgment of or any levy or attachment shall be preserved while the proceedings to strike off or open the judgment are pending. 248 1 77-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. C)S 6CI?l SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CONFESSION OF JUDGMENT Pursuant to the authority contained in the Warrants of Attorney, copies of which are attached to the Complaint in Confession of Judgment filed in this action as Exhibits "A", "B", "C", "D" and 248138.1 "E", I appear for the Defendants and confess judgment in favor of the Plaintiff and against the Defendants, jointly and severally, as follows: LOAN NO. 1: (original loan amount $385,000, dated July 3, 2001) Principal $ 359,943.13 Interest thru 11/14/05 $ 41,382.48 Late Fees $ 4,852.39 Attorneys' Fees (10%) $ 40,617.80 Sub-Total $ 446,795.80* *Plus interest from November 14, 2005 at the per diem rate of $119.98104. LOAN NO. 2: (original loan amount $50,000.00, dated July 3, 2001) Principal $ 43,233.29 Interest thru 11/14/05 $ 512.80 Late Fees $ 0.00 Attorneys' Fees (10%) $ 4,374.61 Sub-Total $ 48,120.70* *Plus interest from November 14, 2005 at the per diem rate of $12.00925. WHEREFORE, Plaintiff demands judgment in its favor and against the Defendants, both jointly and severally, and assess damages in the amount of $494,916.50, plus interest from November 14, 2005, at the per diem rate of $131.99 and cost of suit. WEITNERS LLP By.7 Daniel D. aggerty uire Dated: November 16, 2005 248138.1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05 - (00a PRAECIPE FOR ENTRY OF JUDGMENT BY CONFESSION 248138.1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover. PA 17331 Defendants. JUDGMENT CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. os- 60) 1 AND NOW, this / ) °` day of OvQm 2005, a complaint in confession of judgment and an Affidavit as to the amount due having been filed; it is hereby 248138.1 ORDERED THAT JUDGMENT IS HEREBY ENTERED in favor of Plaintiff, SOVEREIGN BANK, and against Defendants, SALON TRENDS, INC., LAURA L. DAVIS, WILLIAM L. DAVIS, DEBRA ECKSTINE-RALPH and RODNEY L. RAGER, both jointly and severally, in the amount of $494,916.50, plus interest from November 14, 2005, at the per diem rate of $131.99 and cost of suit. Pro onotary 248138.1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. COMPLAINT IN CONFESSION OF JUDGMENT 248138.1 I . Plaintiff, Sovereign Bank, is a Pennsylvania banking corporation with its principal place of business at 100 North P Street, Easton, PA 18042, successor by merger to Waypoint Bank, 235 North Second Street, P.O. Box 1711, Harrisburg, Pennsylvania 17105 ("Plaintiff'). 2. Defendant, Salon Trends, Inc. is a Pennsylvania corporation with a principal place of business at 671 Shippensburg Road, Newville, Pennsylvania 17241. 3. Defendant, Laura L. Davis, is an adult individual residing at 671 Shippensburg Road, Newville, Pennsylvania 17241. 4. Defendant, William L. Davis, is an adult individual residing at 671 Shippensburg Road, Newville, Pennsylvania 17241. 5. Defendant, Debra Eckstine-Ralph a/k/a Debra E. Ralph and Debra Eckstine Long is an adult individual residing at 2314 Bumblebee Hollow Road, Mechanicsburg, Pennsylvania 17055. 6. Defendant, Rodney L. Rager, is an adult individual residing at 30 Magnolia Lane, Hanover, Pennsylvania 17331. 7. This is an action to confess judgment for damages arising out ofthe Defendant, Salon Trends, Inc.'s breach of certain promissory notes and Defendants, Laura L. Davis, William L. David, Debra Eckstine-Ralph and Rodney L. Rager's breach of their executed guaranties. 8. On July 3, 2001, Plaintiff did lend to Salon Trends, Inc., the principal sum of $385,000.00 ("Loan No. 1") which is evidenced by a certain Promissory Note ("Note No. 1") attached hereto as Exhibit "A". 9. On July 3, 2001, Plaintiff did lend to Salon Trends, Inc., the principal sum of $50,000.00 ("Loan No. 2") which is evidenced by a certain Promissory Note ("Note No. 2") attached 248138.1 hereto as Exhibit "B". (Loan Nos. 1 and 2 are collectively the "Loans" and Note Nos. 1 and 2 are collectively the "Notes"). 10. In order to induce the Plaintiff to make the Loans, Salon Trends, Inc. promised to repay these loans loan pursuant to the terms of Note Nos. 1 and 2 and authorized Confession of Judgment. (See Note Nos. 1 and 2 attached hereto as Exhibits "A" and "B"). 11. In order to further induce the Plaintiff to the Loans, Defendants Laura L. Davis, William L. Davis, Defendant, Debra Eckstine-Ralph, and Rodney L. Rager promised to repay the Loans the terms of their Commercial Guarantees and authorized Confession of Judgment. (See Commercial Guarantees attached hereto as exhibits "C", "D" and "E"). 12. The Defendants have defaulted on their obligation by reason of their failure to timely pay the Loans pursuant to the terms of the Notes. 13. The judgment being entered herewith does not involve a consumer credit transaction. 14. As a result of Defendants' default on their obligation due under the terms of the Loan Documents and Forbearance Agreement, Defendants owe the following amounts which have become immediately due and payable to the Plaintiff: LOAN NO. 1: (original loan amount $385,000, dated July 3, 2001) Principal $ 359,943.13 Interest thru 11/14/05 $ 41,382.48 Late Fees $ 4,852.39 Attorneys' Fees (10%) $ 40,617.80 Sub-Total $ 446,795.80* *Plus interest from November 14, 2005 at the per diem rate of $119.98104. 248138.1 LOAN NO. 2: (original loan amount $50,000.00, dated July 3, 2001) Principal $ 43,233. 29 Interest thru 11/14/05 $ 512. 80 Late Fees $ 0. 00 Attorneys' Fees (10%) $ 4,374.61 Sub-Total $ 48,120. 70* *Plus interest from November 14, 2005 at the per diem rate of $12.00925. WHEREFORE, Plaintiff demands judgment in its favor and against the Defendants, both jointly and severally, and assess damages in the amount of $494,916.50, plus interest from November 14, 2005, at the per diem rate of $131.99 and cost of suit. WEIR & PARTNERS L By: 0a) - Daniel D. Haggerty, Esquire Dated: November 16, 2005 248138.1 VERIFICATION I, Bruce Spadaccia, Vice President of Plaintiff, Sovereign Bank, hereby verify that I am authorized to make this verification on behalf of the Plaintiff in this matter and that the matters set forth in the foregoing Complaint in Confession of Judgment are true and correct to the best of my knowledge, information and belief; and that the Exhibits attached to the Complaint are true and correct copies of the originals. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unsworn falsification to authorities. SOVEREIGN BANK -Spadaccia, Vic resident Dated: I (-l7-DS /11? -? A n x 0 z PROMISSORY NOTE Borrower: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Lender: Waypoint Bank 235 North Second Street P.O. Box 1711 Harrisburg, PA 17105 Principal Amount: $385,000.00 Interest Rate: 10.000% Date of Note: July 3, 2001 PROMISE TO PAY. Salon Trends, Inc. ("Borrower") promises to pay to Waypolnt Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Three Hundred Eighty Five Thousand & 00/100 Dollars ($385,000.00), together with Interest at the rate of 10.000% per annum on the unpaid principal balance from July 3, 2001, until paid in full. PAYMENT. Borrower will pay this loan in 59 regular payments of $3,751.10 each and one Irregular last payment estimated at $349,964.20. Borrower's first payment is due August 1, 2001, and all subsequent payments are due on the same day of each month after that. Borrower's final payment will be due on July 1, 2006, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. The annual interest rate for this Note is computed on a 365/360 basis; that is, by applying the ratio of the annual Interest rate over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. Borrower will pay Lender at Lender's address shown above or at such other place as Lender may designate in writing. PREPAYMENT PENALTY. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Upon prepayment of this Note, Lender is entitled to the following prepayment penalty: Borrower may prepay the principal balance, in whole or in part, upon not less than thirty (30) days' prior written notice to Lender of Borrower's intention to make such prepayment, provided there is paid, in addition to the interest accrued to the date of any such prepayment, a prepayment penalty. The penalty will be based on the following factors: (a) The amount of principal that is being prepaid before its due date; (b) Change In interest rates since the loan was made - i.e. the difference in the cost of funds yield between the date the loan was made (original cost of funds yield) and the date of prepayment (subsequent cost of funds yield); and (c) Time remaining until the due date - the time, in years and months, between the date of the prepayment and the date the loan is due. If the calculation of the prepayment penalty results in a negative amount, then no prepayment penalty will be assessed. Lender's determination of the amount of any prepayment will be conclusive and binding absent manifest error. Except for the foregoing, Borrower may pay 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 Borrowers obligation to continue to make payments under the payment schedule. Rather, early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Waypoint Bank , 235 North Second Street, P.O. Box 1711, Harrisburg, PA 17105. LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment or $10.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the interest rate on this Note 2.000 percentage points. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the existing interest rate provided for in this Note. 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. Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower. Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute. Events Affecting Guarantor. Any of the preceding events occurs with respect to any Guarantor of any of the indebtedness or any Guarantor dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note. In the event of a death, Lender, at its option, may, but shall not be required to, permit the Guarantor's estate to assume unconditionally the obligations arising under the guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of Default. Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower. Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired. Cure Provisions. If any default, other than a default in payment is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured (and no event of default will have occurred) if Borrower, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical. LENDER'S RIGHTS. Upon default, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on PROMISSORY NOTE Loan No: 8873001999 (Continued) Page 2 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, construed and enforced in accordance with federal law and the laws of the Commonwealth of Pennsylvania. 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 Dauphin County, Commonwealth of Pennsylvania. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reservesa right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts. COLLATERAL. Borrower acknowledges this Note is secured by a Mortgage dated July 3, 2001, to Lender on real property described as "Real Property located at 11-17 Railroad Avenue, Borough of Mechanicsburg , PA" and located in Cumberland County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of this Note; and a Mortgage dated July 3, 2001, to Lender on real property described as "Real Property located at 107 East Main Street, Borough of Mechanicsburg, PA" and located in Cumberland County, Commonwealth of Pennsylvania, all the terms and conditions of which are hereby incorporated and made a part of this Note. SECURITY. All collateral (as herein defined) is security for this Note and any renewals, extensions and modifications thereof, and the payment, performance and discharge of all other present or future indebtedness, obligations and undertakings (whether individual, joint, several, direct, contingent or otherwise) of the Borrower to or for the benefit of Lender, whether arising directly to Lender under this Note or under any other agreement, promissory note or undertakings now existing or hereinafter entered into by the Borrower to the Lender. The term "Collateral" includes all tangible and intangible property (i) described in any mortgage, assignment or other security document separately executed in favor of Lender, and (ii) in which a security interest has been granted to Lender pursuant to this Note. CROSS COLLATERALIZATION. The Note will be cross-collateralized/cross-defaulted with all other Waypoint Bank loans. If at any time there is a default under this Note, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. DISCLOSURE TO BORROWER FOR CONFESSION OF JUDGMENT. An exhibit, titled "Disclosure for Confession of Judgment," is attached to this Note and by this reference is made a part of this Note just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Note. 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: Waypoint Bank 235 North Second Street Harrisburg, PA 17105 GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PROMISSORY NOTE Loan No: 8873001999 (Continued) Page 3 PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: SALON RENDS, IN v szur" (seal) La r L. Davis, resident of S81on Trends, Inc. LENDER: WAYPOINT BANK fir.,. J Authorized Signer ILA SEP PRO Lending, Vor 5,16 17 03 Itl C-C.r.?•5[ 10pDrp0r?led I..I. Mt. All RIyMt R-r-d. -PA I:lPPElCFl\LPLlD70FC TR-70 PR-281 Y rt x v a PROMISSORY NOTE Borrower: Salon Trends, Inc. 871 Shippensburg Road Newville, PA 17241 Lender: Waypoint Bank 235 North Second Street P.O. Box 1711 Harrisburg, PA 17105 Principal Amount: $50,000.00 Initial Rate: 8.000% Date of Note: July 3, 2001 PROMISE TO PAY. Salon Trends, Inc. ("Borrower") promises to pay to Waypoint Bank ("Lender"), or order, in lawful money of the United States of America, on demand, the principal amount of Fifty Thousand & 00/100 Dollars ($50,000.00) or so much as may be outstanding, together with Interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan immediately upon Lender's demand. Payment in full is due Immediately upon Lender's demand. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning August 1, 2001, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid Interest, then to principal, and any remaining amount to any unpaid collection costs and late charges. The annual interest rate for this Note Is computed on a 3851380 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 Lenders address shown above or at such other place as Lender may designate in writing. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an index which is Lender's Prime Rate (the "Index"). This is the rate Lender charges, or would charge, on 90-day unsecured loans to the most creditworthy corporate customers. This rate may or may not be the lowest rate available from Lender at any given time. Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than each Day. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 7.000% per annum. The interest rate to be applied to the unpaid principal balance of this Note will be at a rate of 1.000 percentage point over the Index, resulting in an initial rate of 8.000% per annum. NOTICE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance charges are earned fully as of the date of the loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law. Except for the foregoing, Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Waypoint Bank , 235 North Second Street, P.O. Box 1711, Harrisburg, PA 17105. LATE CHARGE. If a regularly scheduled interest payment is 15 days or more late, Borrower will be charged 5.0001% of the regularly scheduled payment or $10.00, whichever is greater. If Lender demands payment of this loan, and Borrower does not pay the loan in full within 15 days after Lender's demand, Borrower also will be charged either 5.000% of the sum of the unpaid principal plus accrued unpaid interest or $10.00, whichever is greater. INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, Lender, at its option, may, if permitted under applicable law, increase the variable interest rate on this Note to 3.0D0 percentage points over the Index. The interest rate will not exceed the maximum rate permitted by applicable law. If judgment is entered in connection with this Note, interest will continue to accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. LENDER'S RIGHTS. Upon Lender's demand, Lender may, after giving such notices as required by applicable law, declare the entire unpaid principal balance on 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, construed and enforced in accordance with federal law and the laws of the Commonwealth of Pennsylvania. 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 Dauphin 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 taw. 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. LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payment from Borrower's accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print-outs. SECURITY. All collateral (as herein defined) is security for this Note and any renewals, extensions and modifications thereof, and the payment, performance and discharge of all other present or future indebtedness, obligations and undertakings (whether individual, joint, several, direct, contingent or otherwise) of the Borrower to or for the benefit of Lender, whether arising directly to Lender under this Note or under any other agreement, promissory note or undertakings now existing or hereinafter entered into by the Borrower to the Lender. The term "Collateral" includes all tangible and intangible property (i) described in any mortgage, assignment or other security document separately executed in favor of Lender, and (it) In which a security interest has been granted to Lender pursuant to this Note. CROSS COLLATERALIZATION. The Note will be crosr collateralizedlcross-defaulted with all other Waypoint Bank loans. It at any time there is a default under this Note, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. PROMISSORY NOTE Loan No: 8875001996 (Continued) Page 2 A default in one loan shall constitute a default in all others. DISCLOSURE TO BORROWER FOR CONFESSION OF JUDGMENT. An exhibit, titled "Disclosure for Confession of Judgment" is attached to this Note and by this reference is made a part of this Note just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Note. 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: Waypoint Bank 235 North Second Street Harrisburg, PA 17105 GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several. If any portion of this Note is for any reason determined to be unenforceable, it will not affect the enforceability of any other provisions of this Note. CONFESSION OF JUDGMENT. BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR BORROWER AFTER A DEFAULT UNDER THIS NOTE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS NOTE OR A COPY OF THIS NOTE VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS NOTE TO CONFESS JUDGMENT AGAINST BORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT BORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S ATTENTION OR BORROWER HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE. BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. THIS NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. BORROWER: SALON, TRENDS, INC. B;tr?s (Seal) I L. Davis, President of Salon Trends, Inc. LENDER: W. AYPOINT BANK (LASER PRO Londlnp, VRTB.I1.0 (cI Concert- Incorpo,clod I.., 10.l . A11 RIp111f R.--d. - PA I; 1PP.1CF111PL\OROPC TR-10 m x S Q r: 0 COMMERCIAL GUARANTY Borrower: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Guarantor: Rodney L. Roger 30 Magnolia Lane Hanover, PA 17331 AMOUNT OF GUARANTY. The amount of this Guaranty Is Unlimited. Lender: Waypoint Bank 235 North Second Street P.O. Box 1711 Harrisburg, PA 17105 CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Rodney L. Roger ("Guarantor") absolutely and unconditionally guarantees and promises to pay to Waypoint Bank ("Lender") or its order, on demand, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of Salon Trends, Inc. ("Borrower") to Lender on the terms and conditions set forth in this Guaranty. Under this Guaranty, the liability of Guarantor Is unlimited and the obligations of Guarantor are continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's indebtedness to Lender and is used in the most comprehensive sense and means and includes any and all of Borrower's liabilities, obligations and debts to Lender, now existing or hereinafter incurred or created, including, without limitation, all loans, advances, interest, costs, debts, overdraft indebtedness, credit card indebtedness, lease obligations, other obligations, and liabilities of Borrower, or any of them, and any present or future judgments against Borrower, or any of them; and whether any such Indebtedness is voluntarily or involuntarily incurred, due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined; whether Borrower may be liable individually or jointly with others, or primarily or secondarily, or as guarantor or surety; whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever; and whether the Indebtedness arises from transactions which may be voidable on account of infancy, insanity, ultra vires, or otherwise. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to Lender, by certified mail, at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantors written revocation. For this purpose and without limitation, the term "new Indebtedness" does not include Indebtedness which at the time of notice of revocation is contingent, uniiquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation, including any extensions, renewals, substitutions or modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor's estate as to Indebtedness created both before and after Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness, even to zero dollars ($0.00), prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs, successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars ($0.110). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantor's liability under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, including without. limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or quality in any way the terms at this Guaranty; (B) this Guaranty is executed at Borrower's request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor's assets, or any interest therein; (F) upon Lender's request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (1) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (D) to proceed directly against or exhaust COMMERCIAL GUARANTY Loan No: 8875001996 (Continued) Page 2 any collateral held by Lender from Borrower, any other guarantor, or any other person; (E) to give notice of the terms, time, and place of any public or private sale of personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power; or (G) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (A) any "one action" or "antim-deficlency" law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicialiy or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor, or of any other person, or by reason of the cessation of Borrower's liability from any cause whatsoever, other than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against Guarantor is commenced, there is outstanding Indebtedness of Borrower to Lender which is not barred by any applicable statute of limitations; or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. It payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such claim, demand or right may be asserted by the Borrower, the Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable law or public policy, such waiver shall be effective only to the extent permitted by law or public policy. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else and all accounts Guarantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Guarantor authorizes Lender, to the extent permitted by applicable law, to hold these funds if there is a default, and Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shall be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the parry or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty will be governed by, construed and enforced In accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Guaranty has been accepted by Lender In the Commonwealth of Pennsylvania. Choice of Venue. If there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds Lender harmless from all losses, claims, damages, and costs (including Lender's attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and any one or more of them. The words "Guarantor," "Borrower," and "Lender" include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, partners, managers, or other agents acting or purporting to act on their behalf, and any Loan indebtedness made or created in reliance upon the COMMERCIAL GUARANTY Loan No: 8875001996 (Continued) Page 3 professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law, any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. For notice purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor, and upon Guarantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. TAX RETURNS AND FINANCIAL INFORMATION. Borrower will submit to Lender the guarantors financial statements and signed federal tax returns compiled by a certified public accountant satisfactory to Lender no later than ninety (90) days after the end of each fiscal year. All financial reports required to be provided under this Agreement shall be prepared in accordance with generally accepted accounting principles, applied on a consistent basis and certified by Borrower as being true and correct. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAIN' FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. CURE PROVISIONS. If any default, other than a default in payment is curable and if the undersigned has not been given a notice of a breach of the same provision of this agreement or the Note within the preceding twelve (12) months, it may be cured (and no event of default will have occured) if the undersigned, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonalbe and necessary steps sufficient to produce compliance as soon as reasonably practical. GUARANTOR LIABILITY. The Indebtedness under this Guaranty of the undersigned is and shall be joint, several, unlimited, absolute, primary, and continuing, and may be enforced without the necessity of prior resod by Lender to any other rights, remedies, or securities under the Related Documents or otherwise. CROSS COLLATERALIZATION. The Note will be cross-collateralized/cross-defaulted with all other Waypoint Bank loans. If at any time there is a default under this Note, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. DISCLOSURE TO GUARANTOR FOR CONFESSION OF JUDGMENT. An exhibit, titled "DISCLOSURE FOR CONFESSION OF JUDGMENT" is attached to this Guaranty and by this reference is made a part of this Guaranty just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Guaranty. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Salon Trends, Inc., and all other persons and entities signing the Note in whatever capacity. Guarantor. The word "Guarantor" means each and every person or entity signing this Guaranty, including without limitation Rodney L. Rager. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Indebtedness. The word "Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word lender" means Waypoint Bank , its successors and assigns. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. COMMERCIAL GUARANTY Loan No: 8875001996 (Continued) Page 4 GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMERCIAL GUARANTY IS DATED JULY 3, 2001. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW, GUARANTOR: X Seel) Rodn L. ager,-In i u LAW PRO L..1,. 10. 5.16110f ([)COn[An1-IA-la O[A I[l 1.1. 2001. All RI9A15 A-ervAd. - PA 1:1APPS%C ILLPL1Ef.FC iR-115 'AdM XA, b m x Q 0 COMMERCIAL GUARANT Borrower: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Guarantor: Laura L. Davis William L. Davis 671 Shippensburg Road Newville, PA 17241 AMOUNT OF GUARANTY. The amount of this Guaranty is Unlimited. Lender: Waypoint Bank 235 North Second Street P.O. BOX 1711 Harrisburg, PA 17105 CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Laura L. Davis and William L. Davis ("Guarantor") absolutely and unconditionally guarantees and promises to pay, jointly and severally, to Waypoint Bank ("Lender") or its order, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of Salon Trends, Inc. ("Borrower") to Lender on the terms and conditions set forth in this Guaranty. Under this Guaranty, the liability of Guarantor Is Unlimited and the obligations of Guarantor are continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's indebtedness to Lender and is used in the most comprehensive sense and means and includes any and all of Borrower's liabilities, obligations and debts to Lender, now existing or hereinafter incurred or created, including, without limitation, all loans, advances, interest, costs, debts, overdraft indebtedness, credit card indebtedness, lease obligations, other obligations, and liabilities of Borrower, or any of them, and any present or future judgments against Borrower, or any of them; and whether any such Indebtedness is voluntarily or involuntarily incurred, due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined; whether Borrower may be liable individually or jointly with others, or primarily or secondarily, or as guarantor or surety; whether recovery on the Indebtedness may be or may become barred or unenforceable against Borrower for any reason whatsoever; and whether the indebtedness arises from transactions which may be voidable on account of infancy, insanity, ultra vires, or otherwise. DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to Lender, by certified mail, at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term "new Indebtedness" does not include Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation, including any extensions, renewals, substitutions or modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor's estate as to Indebtedness created both before and after Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness, even to zero dollars ($0.00), prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs, successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars ($0.00). GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without notice or demand and without lessening Guarantor's liability under this Guaranty, from time to time: (A) prior to revocation as set forth above, to make one or more additional secured or unsecured loans to Borrower, to lease equipment or other goods to Borrower, or otherwise to extend additional credit to Borrower; (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment Or other terms of the Indebtedness or any part of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, substitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the Indebtedness; and (H) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or quality in any way the terms of this Guaranty; (B) this Guaranty is executed at Borrower's request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor; (E) Guarantor has not and will not, without the prior written consent of Lender, sell, tease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantors assets, or any interest therein; (F) upon Lender's request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred which may materially adversely affect Guarantor's financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (1) Lender hasmade no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established adequate means of obtaining from Borrower on a confinuing basis information regarding Borrowers financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for COMMERCIAL GUARANTY Loan No: 8873001999 (Continued) Page 2 payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (D) to proceed directly against or exhaust any collateral held by Lender from Borrower, any other guarantor, or any other person; (E) to give notice of the terms, time, and place of any public or private sale of personal property security held by Lender from Borrower or to comply with any other applicable provisions of the Uniform Commercial Code; (F) to pursue any other remedy within Lender's power; or (G) to commit any act or omission of any kind, or at any time, with respect to any matter whatsoever. Guarantor also waives any and all rights or defenses arising by reason of (A) any "one action" or "anti-deficiency" law or any other law which may prevent Lender from bringing any action, including a claim for deficiency, against Guarantor, before or after Lender's commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale; (B) any election of remedies by Lender which destroys or otherwise adversely affects Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower for reimbursement, including without limitation, any loss of rights Guarantor may suffer by reason of any law limiting, qualifying, or discharging the Indebtedness; (C) any disability or other defense of Borrower, of any other guarantor, or of any other person, or by reason of the cessation of Borrower's liability from any cause whatsoever, other than payment in full in legal tender, of the Indebtedness; (D) any right to claim discharge of the Indebtedness on the basis of unjustified impairment of any collateral for the Indebtedness; (E) any statute of limitations, if at any time any action or suit brought by Lender against Guarantor is commenced, there is outstanding Indebtedness of Borrower to Lender which is not barred by any applicable statute of limitations; or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness. If payment is made by Borrower, whether voluntarily or otherwise, or by any third party, on the Indebtedness and thereafter Lender is forced to remit the amount of that payment to Borrowers trustee in bankruptcy or to any similar person under any federal or state bankruptcy law or law for the relief of debtors, the Indebtedness shall be considered unpaid for the purpose of the enforcement of this Guaranty. Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this Guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right, whether such ciaim, demand or right may be asserted by the Borrower, the Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that each of the waivers set forth above is made with Guarantor's full knowledge of its significance and consequences and that, under the circumstances, the waivers are reasonable and not contrary to public policy or law. If any such waiver is determined to be contrary to any applicable taw or public policy, such waiver shall be effective only to the extent permitted by law or public policy. RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Guarantor's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Guarantor holds jointly with someone else and all accounts Guarantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Guarantor authorizes Lender, to the extent permitted by applicable law, to hold these funds if there is a default, and Lender may apply the funds in these accounts to pay what Guarantor owes under the terms of this Guaranty. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the Indebtedness of Borrower to Lender, whether now existing or hereafter created, shall be superior to any claim that Guarantor may now have or hereafter acquire against Borrower, whether or not Borrower becomes insolvent. Guarantor hereby expressly subordinates any claim Guarantor may have against Borrower, upon any account whatsoever, to any claim that Lender may now or hereafter have against Borrower. In the event of insolvency and consequent liquidation of the assets of Borrower, through bankruptcy, by an assignment for the benefit of creditors, by voluntary liquidation, or otherwise, the assets of Borrower applicable to the payment of the claims of both Lender and Guarantor shall be paid to Lender and shall be first applied by Lender to the Indebtedness of Borrower to Lender. Guarantor does hereby assign to Lender all claims which it may have or acquire against Borrower or against any assignee or trustee in bankruptcy of Borrower; provided however, that such assignment shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lender so requests, any notes or credit agreements now or hereafter evidencing any debts or obligations of Borrower to Guarantor shah be marked with a legend that the same are subject to this Guaranty and shall be delivered to Lender. Guarantor agrees, and Lender is hereby authorized, in the name of Guarantor, from time to time to execute and file financing statements and continuation statements and to execute such other documents and to take such other actions as Lender deems necessary or appropriate to perfect, preserve and enforce its rights under this Guaranty. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this Guaranty. No alteration of or amendment to this Guaranty shall be effective unless given in writing and signed by the party or parties sought to be charged or bound by the alteration or amendment. Attorneys' Fees; Expenses. Guarantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's attorneys' fees and Lender's legal expenses, incurred in connection with the enforcement of this Guaranty. Lender may hire or pay someone else to help enforce this Guaranty, and Guarantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Guarantor also shall pay all court costs and such additional fees as may be directed by the court. Caption Headings. Caption headings in this Guaranty are for convenience purposes only and are not to be used to interpret or define the provisions of this Guaranty. Governing Law. This Guaranty will be governed by, construed and enforced in accordance with federal law and the laws of the Commonwealth of Pennsylvania. This Guaranty has been accepted by Lender in the Commonwealth of Pennsylvania. Choice of Venue. It there is a lawsuit, Guarantor agrees upon Lender's request to submit to the jurisdiction of the courts of Dauphin County, Commonwealth of Pennsylvania. Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnities and holds Lender harmless from all losses, claims, damages, and costs (including Lender's attorneys' fees) suffered or incurred by Lender as a result of any breach by Guarantor of the warranties, representations and agreements of this paragraph. Interpretation. In all cases where there is more than one Borrower or Guarantor, then all words used in this Guaranty in the singular shall be deemed to have been used in the plural where the context and construction so require; and where there is more than one Borrower named in this Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all and any one or more of them. The words "Guarantor," "Borrower," and "Lender" include the heirs, successors, assigns, and transferees of each of them. If a court finds that any provision of this Guaranty is not valid or should not be enforced, that fact by itself will not mean that the rest of this Guaranty will not be valid or enforced. Therefore, a court will enforce the rest of the provisions of this Guaranty even if a provision of this Guaranty may be found to be invalid or unenforceable. If any one or more of Borrower or Guarantor are corporations, partnerships, limited liability companies, or similar entities, it is not necessary for Lender to inquire into the powers of Borrower or Guarantor or of the officers, directors, COMMERCIAL GUARANTY Loan No: 8873001999 (Continued) Page 3 partners, managers, or other agents acting or purporting to act on their behalf, and any Loan indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law, any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writing and shall be effective upon delivery to Lender as provided in the section of this Guaranty entitled "DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the nofice is to change the party's address. For notice purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lenders right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute confinuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor, and upon Guarantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. TAX RETURNS AND FINANCIAL INFORMATION. Borrower will submit to Lender the guarantors financial statements and signed federal tax returns compiled by a certified public accountant satisfactory to Lender no later than one hundred twenty (120) days after the end of each fiscal year. All financial reports required to be provided under this Agreement shall be prepared in accordance with generally accepted accounting principles, applied on a consistent basis and certified by Borrower as being true and correct. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE; TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. CURE PROVISIONS. If any default, other than a default in payment is curable and if the undersigned has not been given a notice of a breach of the same provision of this agreement or the Note within the preceding twelve (12) months, it may be cured (and no event of default will have occured) if the undersigned, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonalbe and necessary steps sufficient to produce compliance as soon as reasonably practical. GUARANTOR LIABILITY. The Indebtedness under this Guaranty of the undersigned is and shall be joint, several, unlimited, absolute, primary, and confinuing, and may be enforced without the necessity of prior resort by Lender to any other rights, remedies, or securities under the Related Documents or otherwise. CROSS COLLATERALIZATION. The Note will be cross-collateralized/crass-defaulted with all other Waypoint Bank loans. If at any time there is a default under this Note, all loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. DISCLOSURE TO GUARANTOR FOR CONFESSION OF JUDGMENT. An exhibit, filled "DISCLOSURE FOR CONFESSION OF JUDGMENT," is attached to this Guaranty and by this reference is made a part of this Guaranty just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Guaranty. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Salon Trends, Inc., and all other persons and entities signing the Note in whatever capacity. Guarantor. The word "Guarantor" means each and every person or entity signing this Guaranty, including without limitation Laura L. Davis and William L. Davis. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Indebtedness. The word "Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word "Lender" means Waypoint Bank , its successors and assigns. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. COMMERCIAL GUARANTY Loan No: 8873001999 (Continued) Page a GUARANTOR ACKNOWLEDGES HAVING READ All THE PROVISIONS OF THIS COMMERCIAL GUARANTY AND GUARANTOR AGREES TO ITS TERMS. THIS COMMERCIAL GUARANTY IS DATED JULY 3, 2001. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: (Seal) LaurA.V. Davis, Individually x Seal) ?4 ( W lliam L. Davis, Individually 1(ABER pRO LanOlnp, V.I, S.I B.11.Op ([I Cdn-.l lax lmaipor, Iad 1997, 2001. All Ripllla Rafaryad. - PA I:IAPPS%C I%P \E201C iR-700 PR-3y ???? ?? ? ? ;OMMERCIAL GUARAN-rv Borrower: Salop Trends, Inc. 671 Shippensburg Road NeWVille, PA 17241 Guarantor: Debra Eckstine-Ralph OK n 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 Lender: Waypoint Bank 235 North Second Street P.O. Box 1711 Harrisburg, PA 17105 f. rj-V1 J cY 7S C2? (qVG AMOUNT OF GUARANTY. The amount of this Guaranty is Unlimited. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Debra Eckstlne-Ralph ("Guarantor") absolutely and unconditionally guarantees and promises to pay to Waypoint Bank ("Lender") or Its order, on demand, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of Salon Trends, Inc. ("Borrower") to Lender on the terms and conditions set ro in this Guaranty. Under this Guaranty, the liability of Guarantor is unlimited and the obligations of Guarantor are continuing. re INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes t4@l')D%!t!4Lek1%4p%s? ??Xr4lnX 4@4ii4P1§ DURATION OF GUARANTY. This Guaranty will take effect when received by Lender without the necessity of any acceptance by Lender, or any notice to Guarantor or to Borrower, and will continue in full force until all Indebtedness incurred or contracted before receipt by Lender of any notice of revocation shall have been fully and finally paid and satisfied and all of Guarantor's other obligations under this Guaranty shall have been performed in full. It Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's written notice of revocation must be mailed to Lender, by certified mail, at Lender's address listed above or such other place as Lender may designate in writing. Written revocation of this Guaranty will apply only to advances or new Indebtedness created after actual receipt by Lender of Guarantor's written revocation. For this purpose and without limitation, the term "new Indebtedness" does not include Indebtedness which at the time of notice of revocation is contingent, unliquidated, undetermined or not due and which later becomes absolute, liquidated, determined or due. This Guaranty will continue to bind Guarantor for all Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation, including any extensions, renewals, substitutions or modifications of the Indebtedness. All renewals, extensions, substitutions, and modifications of the Indebtedness granted after Guarantor's revocation, are contemplated under this Guaranty and, specifically will not be considered to be new Indebtedness. This Guaranty shall bind Guarantor's estate as to Indebtedness created both before and after Guarantor's death or incapacity, regardless of Lender's actual notice of Guarantor's death. Subject to the foregoing, Guarantor's executor or administrator or other legal representative may terminate this Guaranty in the same manner in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or termination of any other guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A revocation Lender receives from any one or more Guarantors shall not affect the liability of any remaining Guarantors under this Guaranty. It is anticipated that fluctuations may occur in the aggregate amount of Indebtedness covered by this Guaranty, and Guarantor specifically acknowledges and agrees that reductions in the amount of Indebtedness, even to zero dollars ($0.00), prior to Guarantor's written revocation of this Guaranty shall not constitute a termination of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs, successors and assigns so long as any of the guaranteed Indebtedness remains unpaid and even though the Indebtedness guaranteed may from time to time be zero dollars (;0.00). Y..e I,- GUARANTOR'S AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before or after any revocation hereof, without demand and without lessening Guarantor's liability under this Guaranty, from time to time: tfi&7C7tlrdiSX8N4t&7a1?CXt,p#IffMXat?OL 8544tik11.@S€R'tt4€pc (B) to alter, compromise, renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of the Indebtedness or any pad of the Indebtedness, including increases and decreases of the rate of interest on the Indebtedness; extensions may be repeated and may be for longer than the original loan term; (C) to take and hold security for the payment of this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, fail or decide not to perfect, and release any such security, with or without the substitution of new collateral; (D) to release, s::bstitute, agree not to sue, or deal with any one or more of Borrower's sureties, endorsers, or other guarantors an any terms or in any manner Lender may choose; (E) to determine how, when and what application of payments and credits shall be made on the Indebtedness (F) to apply such security and direct the order or manner of sale thereof, including without limitation, any nonjudicial sale permitted by the terms of the controlling security agreement or deed of trust, as Lender in its discretion may determine; (G) to sell, transfer, assign or grant participations in all or any part of the indebtedness; and (H) to assign or transfer this Guaranty in whole or in part. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Lender that (A) no representations or agreements of any kind have been made to Guarantor which would limit or quality in any way the terms of this Guaranty; (B) this Guaranty is executed at Borrowers request and not at the request of Lender; (C) Guarantor has full power, right and authority to enter into this Guaranty; (D) the provisions of this Guaranty do not conflict with or result in a default under any agreement or other instrument binding upon Guarantor and do not result in a violation of any law, regulation, court decree or order applicable to Guarantor, (E) Guarantor has not and wilt not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer, or otherwise dispose of all or substantially all of Guarantor's assets, or any interest therein; (F) upon Lender's request, Guarantor will provide to Lender financial and credit information in form acceptable to Lender, and all such financial information which currently has been, and all future financial information which will be provided to Lender is and will be true and correct in all material respects and fairly present Guarantor's financial condition as of the dates the financial information is provided; (G) no material adverse change has occurred in Guarantor's financial condition since the date of the most recent financial statements provided to Lender and no event has occurred wnich may materially adversely affect Guarantor's financial condition; (H) no litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against Guarantor is pending or threatened; (1) Lender has made no representation to Guarantor as to the creditworthiness of Borrower; and (J) Guarantor has established adequate means of obtaining from Borrower on a continuing basis information regarding Borrower's financial condition. Guarantor agrees to keep adequately informed from such means of any facts, events, or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that Lender shall have no obligation to disclose to Guarantor any information or documents acquired by Lender in the course of its relationship with Borrower. GUARANTOR'S WAIVERS. Except as prohibited by applicable law, Guarantor waives any right to require Lender (A) to continue lending money or to extend other credit to Borrower; (B) to make any presentment, protest, demand, or notice of any kind, including notice of any nonpayment of the Indebtedness or of any nonpayment related to any collateral, or notice of any action or nonaction on the part of Borrower, Lender, any surety, endorser, or other guarantor in connection with the Indebtedness or in connection with the creation of new or additional loans or obligations; (C) to resort for payment or to proceed directly or at once against any person, including Borrower or any other guarantor; (D) to proceed directly against or exhaust ITEM A Notwithstanding anything to the contrary contained in this Guaranty, the obligations of the Guarantor under this Guaranty are limited to the debts and obligations of the Borrower to the Lender as set forth in two (2) Promissory Notes dated July 3, 2001, in the original principal amount of $385,000 and $50,000, respectively, plus all interest, penalties, charges and fees incurred by the Borrower pursuant thereto, which debt has been incurred by the Borrower to purchase a Salon Business from the Guarantor pursuant to a certain Agreement of Sale dated June 27, 2001. COMMERCIAL GUARANTY Loan No: 8875001996 (Continued) Page 3 professed exercise of such powers shall be guaranteed under this Guaranty. Notices. Unless otherwise provided by applicable law, any notice required to be given under this Guaranty shall be given in writing, and, except for revocation notices by Guarantor, shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning of this Guaranty. All revocation notices by Guarantor shall be in writng and shall be effective upon delivery to Lender as provided in the section of this Guaranty entified 'DURATION OF GUARANTY." Any party may change its address for notices under this Guaranty by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the parlys address. For notice purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's current address. Unless otherwise provided by applicable law, if there is more than one Guarantor, any notice given by Lender to any Guarantor is deemed to be notice given to all Guarantors. No Waiver by Lender. Lender shall not be deemed to have waived any rights under this Guaranty unless such waiver is given in willing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a provision of this Guaranty shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Guaranty. No prior waiver by Lender, nor any course of dealing between Lender and Guarantor, shall constitute a waiver of any of Lender's rights or of any of Guarantor's obligations as to any future transactions. Whenever the consent of Lender is required under this Guaranty, the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender. Successors and Assigns. The terms of this Guaranty shall be binding upon Guarantor, and upon Guarantor's heirs, personal representatives, successors, and assigns, and shall be enforceable by Lender and its successors and assigns. Waive Jury. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. TAX RETURNS AND FINANCIAL INFORMATION. Borrower will submit to Lender the guarantors financial statements and signed federal tax returns compiled by a certified public accountant satisfactory to Lender no later than ninety (90) days after the end of each fiscal year. All financial reports required to be provided under this Agreement shall be prepared in accordance with generally accepted accounting principles, applied on a consistent basis and certified by Borrower as being true and correct. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME FOR GUARANTOR AFTER THE AMOUNTS HEREUNDER BECOME DUE AND WITH OR WITHOUT COMPLAINT FILED, CONFESS OR ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY AND ALL ACCRUED INTEREST, LATE CHARGES AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THE INDEBTEDNESS, TOGETHER WITH COSTS OF SUIT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND FOR SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORITY GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF THAT AUTHORITY, BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO GUARANTOR'S ATTENTION OR GUARANTOR HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. CURE PROVISIONS. If any default, other than a default in payment is curable and if the undersigned has not been given a notice of a breach of the same provision of this agreement or the Note within the preceding twelve (12) months, it may be cured (and no event of default will have occured) if the undersigned, after receiving written notice from Lender demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonalbe and necessary steps sufficient to produce compliance as soon as reasonably practical. GUARANTOR LIABILITY. The Indebtedness under this Guaranty of the undersigned is and shall be joint, several, unlimited, absolute, primary, and confinuing, and may be enforced without the necessity of prior resort by Lender to any other rights, remedies, or securities under the Related Documents or otherwise. CROSS COLLATERALIZATION. The Note will be cross-collateralizedlcross-defaulted with ail other Waypoint Bank loans. If at any time there is a default under this Note, ail loans will be considered in default and all outstanding amounts under the loans will be immediately due and payable in full. A default in one loan shall constitute a default in all others. DISCLOSURE TO GUARANTOR FOR CONFESSION OF JUDGMENT. An exhibit, titled "DISCLOSURE FOR CONFESSION OF JUDGMENT," is attached to this Guaranty and by this reference is made a part of this Guaranty just as if all the provisions, terms and conditions of the Exhibit had been fully set forth in this Guaranty. DEFINITIONS. The following capitalized words and terms shall have the following meanings when used in this Guaranty. Unless specifically stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined in this Guaranty shall have the meanings attributed to such terms in the Uniform Commercial Code: Borrower. The word "Borrower" means Salon Trends, Inc., and all other persons and entities signing the Note in whatever capacity. Guarantor. The word "Guarantor" means each and every person or entity signing this Guaranty, including without limitation Debra Eckshne-Ralph. Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note. Indebtedness. The word "Indebtedness" means Borrower's indebtedness to Lender as more particularly described in this Guaranty. Lender. The word "Lender" means Waypoint Bank , its successors and assigns. Related Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness. COMMERCIAL GUARANTY Loan No- 8875001996 (Continued) Page 4 EACH UNDERSIGNED GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO ITS TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION AND DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FORTH IN THE SECTION TITLED "DURATION OF GUARANTY". NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY IS DATED JULY 3, 2001. THIS GUARANTY IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS GUARANTY IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO LAW. GUARANTOR: X 5eN) Debra EWCSNne-Ralph, lndividunlly U6[R PRO LMa19. VR 5.1a.10.00 COpc MVIRM Pmn[W 9MWIM41nC 1291. 2001. AN RIpMf Rnm,6 -PA I:UP%VTl5LlE.01O TR-1-1 PR-., WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. ASSESSMENT OF DAMAGES TO THE PROTHONOTARY: 248138.1 You are hereby directed to assess damages in favor of Plaintiff and against Defendants as follows: LOAN NO. 1: (original loan amount $385,000, dated July 3, 2001) Principal $ 359,943.13 Interest thru 11/14/05 $ 41,382.48 Late Fees $ 4,852.39 Attorneys' Fees (10%) $ 40,617.80 Sub-Total $ 446,795.80* *Plus interest from November 14, 2005 at the per diem rate of $119.98104. LOAN NO. 2: (original loan amount $50,000.00, dated July 3, 2001) Principal $ 43,233.29 Interest thru t 1/ 14/0 5 $ 512.80 Late Fees $ 0.00 Attorneys' Fees (10%) $ 4,374.61 Sub-Total $ 48,120.70* *Plus interest from November 14, 2005 at the per diem rate of $12.00925. WHEREFORE, Plaintiff demands judgment in its favor and against the Defendants, both jointly and severally, and assess damages in the amount of $494,916.50, plus interest from November 14, 2005, at the per diem rate of $131.99 and cost of suit. WEIR & PARTNERS LLP By: Daniel D. Haggerty, squire Dated: November 16, 2005 248138.1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. VERIFICATION OF BUSINESS PURPOSE I, Bruce Spadaccia, hereby verify that I am the Vice President of Sovereign Bank, that I am authorized to make this verification on behalf of the Plaintiff and that the transaction represented by the instruments attached to the Complaint in Confession of.ludgment filed in this action arose out of a business transaction and was not entered into for personal, family or household purposes. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unworn falsification to authorities. SOVE9,RE BANK ?__I ruce padaccia, Vic President Dated: WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. VERIFICATION OF ADDRESSES I, Bruce Spadaccia, hereby verify that I am the Vice President of Sovereign Bank, that I am authorized to make this verification on behalf of the Plaintiff and hereby certify that the address of Plaintiff is 100 North 3rd Street, Easton, Pennsylvania, 18042. The last known address of Defendants are: Salon Trends, Inc., 671 Shippensburg Road, Newville, Pennsylvania 17241, Laura L. Davis, 671 Shippensburg Road, Newville, Pennsylvania 17241, William L. Davis, 671 Shippensburg Road, Newville, Pennsylvania 17241, Debra Eckstine-Ralph, 2314 Bumblebee Hollow Road, Mechanicsburg, Pennsylvania 17055 and Rodney L. Rager, 30 Magnolia Lane, Hanover, Pennsylvania 17331. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unworn falsification to authorities. SQL 3 NK B > Bruce Spadaccia, i President Dated: t 1-17-0-S WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. VERIFICATION OF NO CONSUMER CREDIT TRANSACTION I, Bruce Spadaccia, hereby verify that I am the Vice President of Sovereign Bank, that I am authorized to make this verification on behalf of the Plaintiff and that this Judgment by Confession is not being entered against a natural person in connection with a consumer credit transaction. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unswom falsification to authorities. SOVE B NK T? accia, Vice resident O Dated: 11-1 1 -f3-S WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. VERIFICATION OF NO RETAIL INSTALLMENT SALE I, Bruce Spadaccia, hereby verify that I am the Vice President of Sovereign Bank, that I am authorized to make this verification on behalf of the Plaintiff and that this is not an ,. . action by a seller, holder or assignee arising out of a retail installment sale contract or account. I understand that false statements herein are made subject to the penalties of 18 Pa, C.S.A. §4904, relating to unworn falsification to authorities. SOVE NK accia, 'ce President Dated: ?l-1 t-o y V WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Road Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Road Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Road Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Road Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. AVERMENT OF DEFAULT I, Bruce Spadaccia, Vice President of Plaintiff, Sovereign Bank, aver that the Defendants are in default of the instruments attached to the Complaint in Confession of Judgment filed in this matter in that the Defendants has failed to make payments owing thereunder when due under the terms of the attached exhibits, as a result of which the sums owing under the attached exhibits have become immediately due and payable. SOVEREIGN BANK BY: e ia, ice resident SHERIFF'S RETURN - REGULAR CASE NO: 2005-06021 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SOVEREIGN BANK VS SALON TRENDS INC ET AL GERALD WORTHINGTON , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within CONFESSION OF JUDGE was served upon ECKSTINE-RALPH DEBRA the DEFENDANT at 1715:00 HOURS, on the 20th day of December , 2005 at 2314 BUMBLEBEE HOLLOW RD MECHANICSBURG, PA 17055 by handing to DEBRA ECKSTINE RALPH a true and attested copy of CONFESSION OF JUDGE , together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 6 .00 Service 9 .60 Affidavit .00 r Surcharge 10 .00 R. Thomas Kline .00 25 .60 12/21/2005 WEIR & PARTNERS LLP Sworn and Subscribed to before me this /i day of Prot of ry By'_ Deputy Sher f SHERIFF'S RETURN - REGULAR CASE NO: 2005-06021 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SOVEREIGN BANK VS SALON TRENDS INC ET AL RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within CONFESSION OF JUDGE was served upon SALON TRENDS INC DEFENDANT the , at 0915:00 HOURS, on the 20th day of December , 2005 at 671 SHIPPENSBURG RD NEWVILLE, PA 17241 by handing to WILLIAM DAVIS, ADULT IN CHARGE a true and attested copy of CONFESSION OF JUDGE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 18.00 Service 12.48 Postage .37 Surcharge 10.00 .00 40.85 Sworn and Subscribed to before me this day of 1uv(> A.D. i Prot4l;,x ar) So Answers: R. Thomas Kline 12/21/2005 WEIR & PARTNERS; P i By: J`Deputy Sheriff SHERIFF'S RETURN - REGULAR CASE NO: 2005-06021 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SOVEREIGN BANK VS TRENDS INC ET AL RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within CONFESSION OF JUDGE was served upon DAVIS LAURA L the DEFENDANT at 0915:00 HOURS, on the 20th day of December-, 2005 at 671 SHIPPENSBURG RD NEWVILLE, PA 17241 by handing to LAURA L DAVIS, HUSBAND a true and attested copy of CONFESSION OF JUDGE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this 11' day of A.D. Prot o y So Answers: R. Thomas Kline 12/21/2005 WEIR & PARTNERS P BY: 1 Deputy Sheri f i SHERIFF'S RETURN - REGULAR CASE NO: 2005-06021 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SOVEREIGN BANK VS TRENDS INC ET AL RICHARD SMITH , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within CONFESSION OF JUDGE was served upon DAVIS WILLIAM L the DEFENDANT , at 0915:00 HOURS, on the 20th day of December , 2005 at 671 SHIPPENSBURG RD NEWVILLE, PA 17241 by handing to WILLIAM DAVIS a true and attested copy of CONFESSION OF JUDGE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 16.00 Sworn and Subscribed to before me this jib day of ?1e0, A.D. Prot ar So Answers: f R. Thomas Kline 12/21/2005 WEIR & PARTN4?e By: ? ySheriff REAGER & ADLER, P.C. BY: THEODORE A. ADLER, ESQUIRE Attorney I.D. No. 16267 Email: Tadler@ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams@ReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Defendant Rodney L. Ra eg r SOVEREIGN BANK, IN THE COURT OF COMMON PLEAS OF Respondent CUMBERLAND COUNTY, PENNSYLVANIA V. No. 05-6021 SALON TRENDS, INC, LAURA L. DAVIS, WILLIAM L. DAVIS, DEBORAH : CIVIL ACTION - LAW EXTINE-RALPH, RODNEY L. RAGER, Defendants PETITION TO STRIKE/OPEN JUDGMENT ENTERED BY CONFESSION Petitioner, Rodney L. Rager, by and through his attorneys, Reager & Adler, PC, petitions this Court to open the Judgment entered by Confession against him, and in support thereof avers the following: Petitioner is Rodney L. Rager, a named Defendant in the above-captioned action. 2. Respondent confessed judgment by Complaint against all Defendants, including Petitioner on or about November 22, 2005. 3. Petitioner was not served with Notice of the Judgment until on or about January 13, 2006. 4. The Judgment by Confession was entered based upon two purported loans and purported guarantees of the loans by Petitioner. The two loans which are the subject of the Confessed Judgment are identified in the Respondent's Complaint for Confession of Judgment as Note Number 1 in the amount of $385,000, and Note Number 2 in the amount of $50,000. Immediately upon notice of the entry of the Judgment, the Petitioner has petitioned this Honorable Court to open the Judgment. The Petitioner has meritorious defenses to the pending action as follows: a. First Defense - Petitioner only guaranteed Loan and Note Number 2 in the amount of $50,000, and did not guarantee Loan and Note Number 1 in the amount of $385,000, which is included in the Confessed Judgment against Petitioner, and as such, the Confessed Judgment must be stricken or opened. A true and correct copy of the Loan Commitment letters from Waypoint Bank, Respondent's predecessor, indicate clearly that Petitioner only signed as a Guarantor of Note Loan Number 2. A true and correct copy of the Loan Commitment letters indicating the Guarantors for both loans are attached hereto and incorporated herein by reference at Exhibit «A„ b. Second Defense - The documents which form the basis of the Respondent's Confession of Judgment against Petitioner requires that any and all lawsuits be brought in the Courts in Dauphin County, Commonwealth of Pennsylvania. Therefore, this Honorable Court lacks jurisdiction to enter judgment on this matter, and the Judgment by Confession must be stricken or opened. C. Third Defense - The Respondent has not complied with the requirement in the Guarantee that Petitioner be provided with a notice of breach and the opportunity to cure in violation of the Guarantee, and as such, the Judgment by Confession must be stricken or opened. d. Fourth Defense - The Respondent's claims are barred due to waiver and estoppel. e. Fifth Defense - The Judgment by Confession as against the Petitioner is void and invalid. WHEREFORE, Petitioner requests this Honorable Court to open the Judgment by Confession and that the Petitioner be permitted to enter a defense. Respectfully submitted, REAGER & ADDER, P Date: February 13, 2006 Tl 6mas O. Williams, Esquire Attorney I.D. No. 16987 Theodore A. Adler, Esquire Attorney I.D. No. 16267 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Attorneys for Defendant, Rodney L. Rager 3 l/,lWaypoint LOOK FOR US. WE'LL GET YOU THERE. February 28, 2001 Mrs. Laura L. Davis Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Dear Mrs. Davis: We are pleased to advise you that, subject to the terms and conditions of this letter (the "Commitment"), Waypoint Bank (the "Lender") has approved your request for a line of credit (the "Loan"). The Loan and this Commitment are subject to statutory and regulatory requirements by which the Lender is governed and your compliance with all terms, conditions, covenants and provisions of this Commitment. The basic terms and conditions of this Commitment are as follows: BORROWER: Salon Trends, Inc. (the "Borrower") AMOUNT OF LOAN: 550,000.00 USE OF LOAN PROCEEDS: The advances under the line of credit shall be used primarily for working capital. INTEREST RATE: Waypoint Bank Prime Rate plus 1.0%. The term "Waypoint Bank Prime Rate," as used herein, means the rate regularly and from time to time established by the Lender as its "Prime Rate" and so designated, whether or not the Lender shall at times lend at lower rates to specific borrowers. Interest will be calculated on the outstanding principal balance for the actual number of days lapsed during each billing cycle at a daily rate based on a year of 360 days. The rate of interest payable shall change simultaneously and automatically upon the Lender's designation from time to time of the reference rate. Waypoint Bank Prime Rate on the date hereof is 8.50%. REPAYMENT: Interest will be paid monthly based on the outstanding principal balance. The full sum of unpaid principal and interest is due and payable on demand. 101 SOUTH GEORGE STREET, YORK, PENNSYLVANIA 17401 Toll Free I-866-WAYPOINT (I-866-929-7646) • www.waypointbank.com Page 2 LATE CHARGE: In the event that any of the aforesaid payments of principal and interest become overdue for a period in excess of fifteen (15) days, a late charge of 5% of the total payment or $10.00, whichever is greater, shall be assessed. ANNUAL REVIEW: The Loan commitment will expire April 30, 2002. The Lender will review the Loan annually for renewals and extensions; such renewals and extensions to be granted predicated on the performance of the company and/or individuals and adherence to the Loan Agreement. COLLATERAL: As security for the Loan, the Lender will require a first priority security interest perfected under the Uniform Commercial Code in all of the Borrower's corporate assets, including present and future accounts, chattel paper, contracts, documents, equipment (including, but not limited to fixtures, office equipment and furniture, and motor vehicles), accessions, general intangibles, instruments, inventory, and any products and proceeds of the foregoing. GUARANTORS: This Loan is further supported by the unconditional continuing personal guarantee offered by Laura LDavis, William L. Davis, Debra Eckstine-Ralph, Rodney L. Rager, and4I e? ?,{}?@r.?Y ca T t tptN? HAZARD AND LIABILITY INSURANCE: The Borrower will provide fire and extended coverage insurance on all insurable assets during the term of the loan, satisfactory to the Lender as to form and insurer, containing the standard mortgagee and loss payee clauses in favor of the Lender. The insurance will be in effect evidenced by an insurance policy submitted to the Lender prior to settlement. DUE AUTHORIZATION: The Borrower and the corporate guarantor will obtain all necessary authorization from its appropriate authority to enter into the agreement evidenced by this letter prior to the making of the Loan. LOAN DOCUMENTS: All legal documents pertaining to the closing of this Loan such as the note, loan agreement and all contracts and writings shall be in form and substance satisfactory to the Lender and subject to the approval of the Lender's legal counsel. JURY WAIVER: Borrower hereby knowingly, voluntarily and intentionally waives any right it may have to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this commitment letter and any agreement, document or instruments executed in conjunction with the Loan(s). This provision is a material inducement for Lender to enter into the Loan(s) contemplated hereunder. DEPOSIT RELATIONSHIP: The Borrower agrees to establish and maintain a primary deposit account relationship with Waypoint Bank during the term of the loan. CORPORATE RESOLUTION: A fully executed Corporate Resolution, a copy of your Articles of Incorporation and all amendments, must be submitted to the Lender prior to closing. Page 3 FINANCIAL INFORMATION: During the term of the Loan, Borrower shall provide Lender with the following financial information: 1) Fiscal year-end financial statements in the name of Salon Trends, Inc. and Debbie Enterprises compiled by an independent certified public accountant within one hundred twenty (120) days from the end of each fiscal year. 2) Interim statements certified by management within 30 days of the end of each month. 3) Signed copies of annual personal financial statements and annual federal income tax returns of all individual guarantors. COVENANTS AND OBLIGATIONS: It is understood and agreed that all covenants and obligations contained in this Commitment shall survive the execution of the Borrower's promissory note and related loan documents, and shall continue in full force and effect until the Loan has been repaid in full. There are no other agreements and any modifications of this Commitment shall be in writing and agreed to by all parties. To the knowledge of Borrower, no action, suit or proceeding is pending or threatened wherein an unfavorable disposition could materially adversely affect the Loan or the property, assets, operations, or financial condition of Borrower. This Commitment is not assignable by the Borrower. FINANCIAL COVENANTS: The Borrower shall maintain the following financial covenants throughout the term of the Commitment: 1) The Borrower shall maintain a minimum debt service coverage ratio of 1.25 to 1.00 Debt Service Coverage is defined as net income plus non-cash expenditures plus interest expense divided by current portion of long term debt plus interest expense plus withdrawals. 2) Maintain a debt to worth ratio of 1.0 to 1.0 throughout the term of Loan. CROSS-COLLATERALIZED/CROSS-DEFAULTED: The Loan shall be cross-collateralized/cross- defaulted with all other loans to the Borrower from the Lender. If at any time there is a default under this loan, all loans will be considered in default and all outstanding amounts under the commitments will be immediately due and payable in full. EXPENSES/FEES: All expenses including, but in no way limited to documentation fees, appraisal fees, attorneys' fees, title insurance, flood certification fees, recording fees and other miscellaneous expenses incurred to close the Loan shall be paid by the Borrower. ACCEPTANCE OF COMMITMENT: If the foregoing terms and conditions are in accordance with your understanding, please indicate receipt and acceptance by signing and returning to the Lender the enclosed original of this letter within 10 days from the date hereof. Page 4 CLOSING: The Loan Closing must take place within forty-five (45) days of the date of this Commitment or this commitment shall become null and void. Lender shall not be required to close the Loan or make any advances on the Loan unless and until all of the conditions and requirements of this Commitment have been fulfilled or completed to the satisfaction of Lender and its counsel in their sole discretion. Waypoint Bank's management and staff are pleased to extend this commitment to you and we look forward to a mutually satisfactory and prosperous relationship. We appreciate the opportunity of making this commitment available to you. If the terms and conditions outlined herein are acceptable to you, please execute the acknowledgment on the original of this letter and return it to me. A copy is enclosed for your records. Should you have any questions regarding this letter, or if the Lender can be of further service, please feel free to contact me. Very truly yours, WAYPOINT BANK Terrence A Gingrow Vice President Commercial Banking Group Page 5 ACKNOWLEDGEMENT: We hereby accept the terms and conditions as stated herein this day of 20 WITNESS/ATTEST: BORROWER: SALON TRENDS, INC. i By: Secretary Lam a L. Davis, President WITNESS/ATTEST: GUARANTORS: By: n ti u l i o` Laura L. Davis By: ' J By: William L. Davis bra Eckstine-Ralph De?dn R y L. R er DEBBIE RPRIS , By: ? De a E Stine- \alph, Pres dent riWayp Epint LOOK FOR US. WE'LL GET YOU THERE. February 28, 2001 Mrs. Laura L. Davis Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Dear Mrs. Davis: We are pleased to advise you that, subject to the terms and conditions of this letter (the "Commitment") Waypoint Bank (the "Lender") has approved the following credit accommodation (the "Loan"). The Loan and this Commitment are subject to statutory and regulatory requirements by which the Lender is governed and your compliance with all terms, conditions, covenants and provisions of this Commitment. The basic terms and conditions of this Commitment are as follows: BORROWER(S): Salon Trends, Inc. (The "Borrower") AMOUNT OF LOAN: $385,000.00 USE OF LOAN PROCEEDS: The proceeds of the Loan will be used to purchase nine (9) beauty salons from Debbie Enterprises, Ltd. INTEREST RATE: The interest rate on the Loan will be fixed at 10.00 % per annum for the term of the Loan. Interest will be calculated on the outstanding principal balance for the actual number of days lapsed during each billing cycle at a daily rate based on a year of 360 days. FIXED RATEISETTLEMENT DATE: The fixed rates quoted above will remain in effect until March 16, 2001. If at that time, settlement has not been held, new fixed rates will be quoted and replace the previously quoted fixed rates. REPAYMENT: The Loan will provide for 59 consecutive equal monthly installments of principal and interest in the amount of $3,715.33 (20 year amortization). One final payment of any remaining unpaid principal and interest is due and payable on the date of the fifth year anniversary of the closing of the Loan. 101 SOUTH GEORGE STREET. YORK. PENNSYLVANIA 17401 Toll FrEE I-866-WAYPOINT (I-866-929-7646) • www.waypointbank.com Page 2 PREPAYMENT: A prepayment fee will be charged if the Loan is prepaid, in whole or in part, during the fixed rate period. The fee will be based on: (a) the amount prepaid before the due date, (b) the difference in the cost of funds yield between the date the loan was made (original cost of funds yield) and the date of prepayment (subsequent cost of funds yield), and (c) time remaining until the due date (in years and months) between the date of the prepayment and the date the loan is due. LATE CHARGE: In the event that any of the aforesaid payments of principal and interest become overdue for a period in excess of fifteen (15) days, a late charge of 5% of the total payment or $10.00, whichever is greater, shall be assessed. COLLATERAL: As security for the Loan, the Lender will require a first lien mortgage on the real estate located at 11-17 Railroad Street, Mechanicsburg, Pennsylvania and 107 E. Main Street, Mechanisburg, Pennsylvania (the "Mortgaged Property") and all present and future improvements erected thereon and placed therein. GUARANTORS: This Loan is further supported by the unconditional continuing personal guarantee offered by Laura L. Davis, William L. Davis, Debra Eckstine-Ralph, and Debbie Enterprises, Ltd. CROSS-COLLATERALIZED/CROSS-DEFAULTED: The Loan shall be cross-collateralized/cross- defaulted with all other loans to the Borrower from the Lender. If at any time there is a default under this loan, all loans will be considered in default and all outstanding amounts under the commitments will be immediately due and payable in full. FLOOD INSURANCE: By closing, a flood certification will be obtained by the Lender and the fee for this will be charged to the Borrower. Should the subject assets be located in a flood hazard area, the Borrower agrees to purchase flood insurance to cover assets secured by the Loan. CORPORATE RESOLUTION: A fully executed Corporate Resolution, a copy of your Articles of Incorporation and all amendments, must be submitted to the Lender prior to closing. DUE AUTHORIZATION: The Borrower and the corporate guarantor will obtain all necessary authorization from its appropriate authority to enter into the agreement evidenced by this letter prior to the making of the loan. LOAN DOCUMENTS: All legal documents pertaining to the closing of this Loan such as the mortgage, note, loan agreement and all contracts and writings shall be in form and substance satisfactory to the Lender and subject to the approval of the Lender's legal counsel. JURY WAIVER: Borrower hereby knowingly, voluntarily and intentionally waives any right it may have to a trial by jury in respect of any litigation based hereon, arising out of, under or in connection with this commitment letter and any agreement, document or instruments executed in conjunction with the Loan(s). This provision is a material inducement for Lender to enter into the Loan(s) contemplated hereunder. DEPOSIT RELATIONSHIP: The Borrower agrees to establish and maintain a primary deposit account relationship with Waypoint Bank during the term of the loan. Page 3 FINANCIAL INFORMATION: During the term of the Loan, Borrower shall provide Lender with the following financial information: 1) Fiscal year-end financial statements in the name of Salon Trends, Inc. and .`i? ?L compiled by an independent certified public accountant within ninety (90) days from the end of each fiscal year. 2) Interim statements certified by management within 30 days of the end of each month. 3) Signed copies of annual personal financial statements and annual federal income tax returns of all individual guarantors. COVENANTS AND OBLIGATIONS: It is understood and agreed that all covenants and obligations contained in this Commitment shall survive the execution of the Borrower's promissory note and related loan documents, and shall continue in full force and effect until the Loan has been repaid in full. There are no other agreements and any modifications of this Commitment shall be in writing and agreed to by all parties. To the knowledge of Borrower, no action, suit or proceeding is pending or threatened wherein an unfavorable disposition could materially adversely affect the Loan or the property, assets, operations, or financial condition of Borrower. This Commitment is not assignable by the Borrower. FINANCIAL COVENANTS: The Borrower shall maintain the following financial covenants throughout the term of the commitment: 1) The Borrower shall maintain a minimum debt service coverage ratio of 1.25 to 1.00 Debt Service Coverage is defined as net income plus non-cash expenditures plus interest expense divided by current portion of long term debt plus interest expense plus withdrawals. 2) Maintain a debt to worth ratio of 1.0 to 1.0 throughout the term of Loan. APPRAISAL: A satisfactory appraisal on the real estate, prepared by an appraiser acceptable to the Lender, must be submitted to the Lender prior to closing. The Loan [and prior liens if any] may not exceed eighty percent (80%) of the appraised value. TITLE INSURANCE: Borrower shall provide Lender with an ALTA form Mortgage Insurance Policy in an amount and form and with endorsements satisfactory to Lender. We can recommend Waypoint Settlement Services, LLC, an affiliate of the Lender, for this service, at a cost at the State required Insurance Department rates, the basic Mortgagee Title Insurance Policy Only. Borrower is, however, free to obtain title insurance required by Lender from any agent or insurer of Borrower's choice, acceptable to Lender. Borrower shall pay all costs of title insurance for this Loan. Standard Pennsylvania endorsements 100, 300, and 900 (8.1) are required. HAZARD AND LIABILITY INSURANCE: Borrower shall provide Lender with the original of a policy providing coverage satisfactory to Lender on the mortgaged property and all improvements against the perils of fire, extended coverage, vandalism, malicious mischief and public liability. The policy of insurance shall be issued by an insurance company acceptable to the Lender, must name the Lender as mortgagee and shall be maintained in force until the Loan is paid in full. Page 4 In the event that the Lender is financing the purchase of or has taken other equipment, furniture, fixtures, vehicles and items related to this transaction as collateral, you will be required to provide at closing evidence of insurance coverage satisfactory to the Lender. The Lender must be named as loss payee in the policy. LEASES: The Borrower shall deliver to the Lender executed copies of leases for the eight (8) leased premises in a form and substance and with such parties as shall be satisfactory to the Lender in its sole judgment. MISCELLANEOUS REQUIREMENTS: Receipt and satisfactory review of a fully executed Definitive Agreement with the present owner. EXPENSES/FEES: A non-refundable commitment fee of $2,500 will be payable at settlement. All expenses including, but in no way limited to, appraisal fees, attorneys' fees, title insurance, flood certification fees, recording fees and other miscellaneous expenses incurred to close the Loan shall be paid by the Borrower. ACCEPTANCE OF COMMITMENT: If the foregoing terms and conditions are in accordance with your understanding, please indicate receipt and acceptance by signing and returning to the Lender the enclosed original of this letter within 10 days from the date hereof. CLOSING: The Loan Closing must take place within forty-five (45) days of the date of this Commitment or this commitment shall become null and void. Lender shall not be required to close the Loan or make any advances on the Loan unless and until all of the conditions and requirements of this Commitment have been fulfilled or completed to the satisfaction of Lender and its counsel in their sole discretion. Waypoint Bank's management and staff are pleased to extend this Commitment to you and we look forward to a mutually satisfactory and prosperous relationship. If the terms and conditions outlined herein are acceptable to you, please execute the acknowledgment on the original of this letter and return it to me. A copy is enclosed for your records. Should you have any questions regarding this letter, or it the Lender can be of further service, please feel free to contact me. Very truly yours, WAYPOINT BANK Terrence M. Gingrow Vice President Commercial Banking Group Page 5 ACKNOWLEDGEMENT: We hereby accept the terms and conditions as stated herein this day of 20 WITNESS/ATTEST: Secretary BORROWER: SALON TRENDS, INC. By !_ L a L. Davis, resident WITNESS/ATTEST: `V GUARANTORS: BY: La a L. Davis By: William L. Davis By: Debra Eckstine-Ralph DEBBI ENTERPRISES, LTD.' By: - .? De ra Eckstine-Ralph, President t VERIFICATION I, Rodney L. Rager, hereby verify that I am authorized to verify the averments of the foregoing document are true and correct to my personal know- ledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authorities. Date: Feb . i sAc (' By: ' pjaa?- kodney L. er CERTIFICATE OF SERVICE AND NOW, this 1`h day of February, 2006, I hereby verify that I have caused a true and correct copy of the foregoing document to be placed in the U.S. mail, first class, postage prepaid and addressed as follows: Daniel D. Haggerty, Esquire Weir & Partners, LLP The Weidner Building Suite 500 1339 Chestnut Street Philadelphia, PA 19107 -1wnma n a 41 Thomas O. Williams, Esquire SOVEREIGN BANK, RESPONDENT V. SALON TRENDS, INC., LAURA L. DAVIS, WILLILAM L. DAVIS, DEBORAH EXTINE-RALPH, RODNEY L. RAGER, DEFENDANTS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA 05-6021 CIVIL ORDER OF COURT AND NOW, this 15th day of February, 2006, upon consideration of the foregoing Petition to Strike/Open Judgment Entered by Confession, IT IS HEREBY ORDERED that: (1) A rule is issued upon Sovereign Bank to show cause why the defendant, Rodney L. Rager is not entitled to the relief requested; (2) Sovereign Bank shall file an answer to the petition within twenty days of service; (3) The petition shall be decided under Pa.R.C.P. No. 206.7; (4) An evidentiary hearing on disputed issues of material fact shall be held on the 291h day of March, 2006, at 2:00 p.m. in Courtroom No. 5 of the Cumberland County Courthouse. By the Court, ' --? U? M. L. Ebert, Jr., J. ??::',.f r.l r' ), .'= n ? _?., ,.. 1'?, .? Daniel D. Haggerty, Esquire Salon Trends, Inc. Laura L. Davis William L. Davis Deborah Extine-Ralph Rodney L. Rager Defendants Thomas O. Williams, Esquire Attorney for Defendant, Rodney L. Rager ,?-/C Oo bas WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants PLAINTIFF, SOVEREIGN BANK'S ANSWER TO DEFENDANT, RODNEY L RAGER'S PETITION TO STRIKE/OPEN JUDGMENT ENTERED BY CONFESSION Admitted. 2. Admitted. 3. Admitted in part and denied in part. It is admitted that Petitioner/Defendant, Rodney L. Rager ("Petitioner") was served with formal Notice of Judgment pursuant to PA.R.C.P. No. 2958.1 on January 13, 2006 by sheriff's service. It is denied that Petitioner did not have notice of the judgment before that date, as Petitioner had previously been provided a copy of the judgment materials. 4. Denied. The confession of judgment, as to Petitioner, was entered based on an unlimited guaranty (the "Commercial Guaranty") executed by the Petitioner which guaranteed "any and all of [Salon Trends, Inc.'s] indebtedness to Lender." This "indebtedness" included, but was not limited to, the two loans referenced in the Petition. It is further denied that Petitioner "immediately upon notice of entry of the Judgment ... petitioned this Honorable Court to open the Judgment," as the Defendant was aware of the entry of Judgment prior to January 13, 2006. 5. Denied. (a). The first defense is denied. The terms of the Commercial Guaranty could not be more clear. The first three paragraphs of the Commercial Guaranty state, without emphasis being added herein, the following: AMOUNT OF GUARANTY. The amount of the Guaranty is Unlimited. CONTINUING UNLIMITED GUARANTY. For good and valuable consideration, Rodnely L. Rager ("Guarantor") absolutely and unconditionally guarantees and promises to pay [Plaintiff] or its order, on demand, in legal tender of the United States of America, the Indebtedness (as that term is defined below) of Salon Trends, Inc. ("Borrower") to [Plaintiff] on the terms and conditions set forth in this Guaranty. Under this Guaranty, the liability of the Guarantor is unlimited and the obligations of Guarantor are continuing. INDEBTEDNESS GUARANTEED. The Indebtedness guaranteed by this Guaranty includes any and all of Borrower's indebtedness to Lender and is used in the most comprehensive sense and means and includes and all of Borrower's liabilities, obligations, and debts to lender ... Furthermore, the Commercial Guaranty includes and integration clause, which provides: Integration. Guarantor further agrees that Guarantor has read and fully understands the terms of this Guaranty; Guarantor has had the opportunity to be advised by Guarantor's attorney with respect to this Guaranty; the Guaranty fully reflects the Guarantor's intentions and parol evidence is not required to interpret the terms of this Guaranty. Guarantor hereby indemnifies and holds [Plaintiff] harmless from all losses ... 255202-1 Thus, Petitioner's exclusive reliance upon a commitment letter, that Petitioner did not even sign, is improper and misplaced. (b). The second defense is denied. Petitioner misquotes the choice of venue provision. The choice of venue provision does not "require" the Plaintiff to file suit in any specific venue. Rather, it merely provides that in the event of a lawsuit, Guarantor agrees to submit to the jurisdiction of Daufin County. This provision does not prohibit the filing of an action in any County otherwise permitted by our Rules of Court. Pursuant to PA.R.C.P. No. 1006, subsections (a)(1) and (c)(1), venue is proper. (c). The Third Defense is denied. There is no requirement in the Guaranty that Petitioner be provided with a notice of default when the basis of the default is the failure of the borrower to timely make payment. The "Cure Provisions" on page 3 of the Commercial Guaranty, specifically exempts from the notice requirements any default in payment. (d) The Fourth Defense is denied. There has been no waiver and estoppel does not apply. Further, these allegations call for a legal conclusion to which no response is necessary. (e). The Fifth Defense is denied. This defense calls for a legal conclusion to which no response is necessary. WHEREFORE, Plaintiff, Sovereign Bank, respectfully request that this Honorable Court deny the Petitioner's Petition to Strike/Open Judgment entered by Confession. WEIR & PARTNERS By: U Z? 1,// 1 DANIEL D. HAGGERTY, ESQUIRE Attorney for Plaintiff, Sovereign Bank Dated: March 3, 2006 255202-1 03/U3/2006 FRI 8:61 Fax ®002/002 VERIFICA'T'ION I, Bruce Spadaccia, hereby verify that I am an the Vice President of Sovereign Bank in the foregoing matter, and that I am authorized to make this verification on behalf of Sovereign Bank, and that the facts set forth in the foregoing Answer to Defendant's Petition to Strike/Open Confessed Judgment are true and correct to the best of my knowledge, information and belief. I understand that this verification is made subject to the penalties of 18 Pa. C.S.A. §4904, relating to unswom falsification to authorities. A IA VICE PRESIDENT, SOVEREIGN BANK Dated: J' - -O (J 255)02-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. CERTIFICATE OF SERVICE I, Daniel D. Haggerty, Esquire, hereby certify that true and correct copies of the Plaintiff, Sovereign Bank's Answer to Defendant's Petition to Strike/Open Confessed Judgment was served on March 3, 2006 by overnight mail upon the Court and the following interested parties. Thomas O. Williams, Esquire Reager & Adler, P.C. 2331 Market Street Camp Hill, PA 17011-4642 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Ms. Debra Ralph 555 Harvest Lane Mechanicsburg, PA 17055 William L. Davis 671 Shippensburg Road Newville, PA 17241 255202-1 WEIR & AR R LP By-? Darnel D. Haggerty, Esquire zss202-1 l l _{ ,..,- ? t -? .l 1 ?.? WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. PRAECIPE FOR WRIT OF EXECUTION UPON A CONFESSED JUDGMENT To the Prothonotary: Issue a writ of execution upon a judgment entered by confession in the above matter, (1) directed to the Sheriff of Cumberland County; (2) against Debra Eckstine-Ralph, a/k/a Debra Eckstine Long, Defendant; (3) and index this writ; (a) against Debra Eckstine-Ralph, Defendant; (4) Amount due $494,916.50 Interest from 11/14/05 to 3/17/06 $ 16,234.77 Total: $511,151.27 *Plus interest from March 17, 2006, at the per diem rate of $131.99. Original Judgment amount was $494,916.50, calculated as of November 14, 2005, plus interest and costs. CERTIFICATION I certify that: (a) This praecipe is based upon a judgment entered by confession, (b) Notice has been served pursuant to Rule 2958.1 at least thirty (30) days prior to the filing of this Praecipe as evidenced by the Return of Service filed in this matter. WEIR & PARTNERS BY: Daniel D. Haggerty, Esquire Attorney for Plaintiff Dated: March 17, 2006 255595-1 ? v? ?? ??, F - ?? ? ? rl a i ? y -,- i ? ? N r J ki ?. w ? ?? ? L ? ? ... ?? :'': i ; ,? . _ ? ? r G• WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) N005-6021 Civil COUNTY OF CUMBERLAND) CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due Sovereign Bank Plaintiff (s) From Debra Eckstine-Ralph (1) You are directed to levy upon the property of the defendant (s)and to sell see legal description . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that. (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due$ 494,916.50 Interest from 11/14/05 to 3/17/06 Atty's Comm % Atty Paid $ 15.00 Plaintiff Paid Date: March 22, 2006 (Seal) Due Prothy $1.00 County Other Costs Aothonotar By: Deputy REQUESTING PARTY: Name Daniel D. Haggerty, Esquire Address: The Widener Building Suite 500, 1339 Chestnut Street Philadelphia, Pa. 19107 Attorney for: Plaintiff Telephone: (215)665-8181 L.L. $16,234.77 Plus interest from 3/17/06 at per diem rate of $131.99 Supreme Court ID No. 77894 r WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff NOTICE TO DEFENDANTS SOVEREIGN BANK Plaintiff, V. SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05-6021 NOTICE OF SHERIFF'S SALE OF REAL PROPERTY PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.1 and 3129.2 TAKE NOTICE: That the Sheriff's Sale of real property (real estate) will be held on September 6, 2006 at 1 Courthouse Square, Carlisle, Pennsylvania 17013, at 10:00 A.M., prevailing local time. The property to be sold is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) The location of your property to be sold is: 107 E. Main Street Mechanicsburg Bore, County of Cumberland Commonwealth of Pennsylvania Mechanicsburg, Pennsylvania 17055 Parcel No. 18-23-0565-112 As more fully described in the attached Property Description. The judgment under or pursuant to which your property is being sold is docketed to: Sovereign Bank The name of the owner or reputed owner of this property is: Debra Eckstine-Ralph a/k/a Debra Eckstine Long A schedule of distribution, being a list of the persons and or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and Municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. It has been issued because there is a judgment against you. It may cause your property to be held to be sold or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE: Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of Cumberland County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or procedure used against you. 2. After the Sheriff's Sale you may file a petition with the Court of Common Pleas of Cumberland County to set aside the sale for a grossly inadequate price or for other proper cause. This petition must be filed before the Sheriff's Deed is delivered. 225777-2 A petition or petitioners raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of Cumberland County at one of the Court's regularly schedule business court sessions. The petition must be served on the attorney for the Creditor at least two (2) business days before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office, Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013, before presentation of the petition to the Court. WEMAS . N1zRAL By:?? V DANIEL D. HAGG TY,Y-SQ. The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff Dated: March 17, 2006 225777-2 LEGAL DESCRIPTION 107 E. Main Street Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 18-23-0565-112 ALL that certain house and lot of ground situate on the North side of East Main Street, in the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING on the South by Main Street, on the East by lot now or late of Senseman; on the North by Strawberry Alley and on the West by lot now or late of Myers. CONTAINING 31 feet on said Main Street and extending at an even width 200 feet to the alley aforementioned. Having thereon erected a brick dwelling house known and numbered as 107 East Main Street. IT BEING the same tract of land which Stephen P. Gift and April M. Gift, husband and wife, by deed dated September 12, 1997 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 164, page 664, granted and conveyed unto Debra E. Ralph, Mortgagor herein. ?-.. r -o {.... _ ' ? r f` i 7. -J -_ _ ??i i:T j ?( i r i C_,7 ca r WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff NOTICE TO LIEN HOLDERS SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. NOTICE PURSUANT TO PA R.C.P. 3129.1 and 3129.2 Notice is hereby given to the following parties who hold one or more mortgage, judgment or tax liens against the real estate of Debra Eckstine-Ralph, a/k/a Debra Eckstine Lone. Cumberland Countv Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment I Courthouse Square Carlisle, PA 17013 i Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 United Water Pennsylvania, Inc. Mechanicsburg Oyerations Legal Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 You are hereby notified that on Wednesday, September 6, 2006, at 10_00 A.M., prevailing time, by virtue of a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, on the judgment of Sovereign Bank vs. Salon Trends, Inc., et al., Docket No. 05-6021, the Sheriff of Cumberland County, Pennsylvania will expose at Public Sale in the Sheriff's Office in the Court House, real estate of Debra Eckstine-Ralph known and numbered as Parcel No. 18-23-0565-112, located at 107 E. Main Street. Mechanicsburg Boro Township. Mechanicsburg, Pennsylvania 17055, Cumberland County, Pennsylvania. A description of said real estate is hereto attached. A schedule of distribution will be filed by the Sheriff on a date specified by the Sheriff not later than thirty (30) days after the sale. Distribution will be made in accordance with the schedule unless exceptions are filed thereto within ten (10) days after the filing of the schedule. 225777-2 You are further notified that the lien you hold against said real estate will be divested by the sale and that you have an opportunity to protect your interest, if any, by being notified of said Sheriff's Sale. WEIR & P T L P Dated: March 17, 2006 By: DANIEL D. HAGGERTY, QUIRE Attorney for Plaintiff, Sovereign Bank 225777-2 . LEGAL DESCRIPTION 107 E. Main Street Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 18-23-0565-112 ALL that certain house and lot of ground situate on the North side of East Main Street, in the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING on the South by Main Street, on the East by lot now or late of Senseman; on the North by Strawberry Alley and on the West by lot now or late of Myers. CONTAINING 31 feet on said Main Street and extending at an even width 200 feet to the alley aforementioned. Having thereon erected a brick dwelling house known and numbered as 107 East Main Street. IT BEING the same tract of land which Stephen P. Gift and April M. Gift, husband and wife, by deed dated September 12, 1997 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 164, page 664, granted and conveyed unto Debra E. Ralph, Mortgagor herein, F WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants AFFIDAVIT PURSUANT TO RULE 3129.1 Sovereign Bank , plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution filed the following information concerning the real property located at 1. Name and Address of Owner or Reputed Owner: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 225777-2 2. Name and Address of Defendant in the Judgment: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 Name and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 4. Name and address of the last recorded holder of every mortgage of Record: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 225777-2 Name and address of every other person who has any record lien on their property: Name Address (if address cannot be reasonably Ascertained, please so indicate 6. Name and address of every other person who has any record interest In the property and whose interest may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Cumberland County Tax Claim Bureau I Courthouse Square Carlisle, PA 17013 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 225777-2 United Water Pennsylvania, Inc. Mechanicsburg Operations Legal Department 2411 East Park Circle Harrisburg, PA 17111 PPL Electric Compan y Legal Department Two North Ninth Street Allentown, PA 18101 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 PA C.S. Sec. 4904 relating to unswom falsification to authorities. WEIR PA R Dated: March 17, 2006 BY. ? DANIEL D. AGGERTY, ESQU Weir & Partners LLP The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff 225777-2 r-, c -:, -_a ?.. 'w ?.? - rv `i:; _:: l?`?i ?, c' - -1 Ya ?J WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. PRAECIPE FOR WRIT OF EXECUTION UPON A CONFESSED JUDGMENT To the Prothonotary: Issue a writ of execution upon a judgment entered by confession in the above matter, (1) directed to the Sheriff of Cumberland County; (2) against Debra Eckstine-Ralph, a/k/a Debra Eckstine Long;, Defendant; (3) and index this writ; (a) against Debra Eckstine-Ralph, Defendant; (4) Amount due $494,916.50 Interest from 11/14/05 to 3/17/06 $ 16.234.77 Total: $511,15127 *Plus interest from March 17, 2006, at the per diem rate of $131.99. Original Judgment amount was $494,916.50, calculated as of November 1.4, 2005, plus interest and costs. CERTIFICATION I certify that: (a) This praecipe is based upon a judgment entered by confession, (b) Notice has been served pursuant to Rule 2958.1 at least thirty (30) days prior to the filing of this Praecipe as evidenced by the Return of Service filed in this matter. WEIR & PARTNERS LLP -?i BY: C-) D ie ggerty, Esq re Attorney for Plaintiff Dated: March 17, 2006 255678-1 d r ?? ? S N? u? d r U w f> i.-, C e. c':n a WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) N005-6021 Civil COUNTY OF CUMBERLAND) CIVIL ACTION-LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due Sovereign Bank Plaintiff (s) From Debra Eckstine-Ralph (1) You are directed to levy upon the property of the defendant (s)and to sell see legal description . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof, (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify himber that he/she has been added as a garnishee and is enjoined as above stated. Amount Due$ 494,916.50 Interest from 11/14/05 to 3/17/06 Arty's Comm % Arty Paid $159.45 Plaintiff Paid Date: March 22, 2006 (Seal) REQUESTING PARTY: Name Daniel D. Haggerty, Esquire L.L.$ 0.50 $16,234.77 Plat interest from 3/17/06 at per diem rate of $131.99 Due Prothy $1.00 County Other Costs Prothonotary By: Deputy Address: The Widener Building Suite 500, 1339 Chestnut Street Philadelphia, Pa. 19107 Attorney for: Plaintiff Telephone: (215)665-8181 Supreme Court ID No. 77894 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff NOTICE TO DEFENDANTS SOVEREIGN BANK Plaintiff, CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION V. SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. 05-6021 NO . N -;O N r' , n, c_n `xi NOTICE OF SHERIFF'S SALE OF REAL PROPERTY PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.1 and 3129.2 TAKE NOTICE: That the Sheriff's Sale of real property (real estate) will be held on September 6, 2006 at I Courthouse Square, Carlisle, Pennsylvania 17013, at 10:00 A.M., prevailing local time. The property to be sold is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) The location of your property to be sold is: 11-17 Railroad Avenue Mechanicsburg Boro, County of Cumberland Commonwealth of Pennsylvania Mechanicsburg, Pennsylvania 17055 Parcel No. 19-23-0565-019 As more fully described in the attached Property Description. The judgment under or pursuant to which your property is being sold is docketed to: Sovereign Bank The name of the owner or reputed owner of this property is: Debra Eckstine-Ralph a/k/a Debra Eckstine Long A schedule of distribution, being a list of the persons and or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and Municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. It has been issued because there is a judgment against you. It may cause your property to be held to be sold or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE: Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of Cumberland County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or procedure; used against you. 2. After the Sheriff's Sale you may file a petition with the Court of Common Pleas of Cumberland County to set aside the sale for a grossly inadequate price or for other proper cause. This petition must be filed before the Sheriffs Deed is delivered. 225777-2 A petition or petitioners raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of Cumberland County at one of the Court's regularly schedule business court sessions. The petition must be served on the attorney for the Creditor at least two (2) business days before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office, Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013, before presentation of the petition to the Court. WEIR & PARTNER LLP By:Q' DANIEL D. HAGGERTY, ESQ. The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff Dated: March 17, 2006 225777-2 LEGAL DESCRIPTION 11-17 Railroad Avenue Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 19-23-0565-019 ALL that certain tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg, in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BEGINNING at a point, said point being at the intersection of Railroad Avenue and Strawberry Alley, thence along the eastern right-of-way line of Railroad Avenue, South seventeen (17) degrees thirty (30) minutes zero (00) seconds East, a distance of eighty-four and thirty-five one-hundredths (84.35) feet to a point; thence along lands now or formerly of Harold R. Stone, South seventy-two (72) degrees six (06) minutes sixteen (16) seconds West, a distance of ninety-three and fifty-one one-hundredths (93.51) feet to a point; thence along lands now or formerly of Thomas C. Wetzel, North seventeen (17) degrees forty-five (45) minutes forty-four (44) seconds West, a distance of eighty-four and eighty hundredths (84.80) feet to a point; thence along the southern right-of-way line of Strawberry Alley, North seventy-two (72) degrees twenty-two (22) minutes forty-seven (47) minutes East, a distance of ninety-three and eighty- nine one-hundredths (93.89) feet to the place of BEGINNING. CONTAINING 7,925 square feet. BEING 11-13-15 Railroad Avenue, Mechanicsburg, Cumberland County, Pennsylvania. IT BEING the same tract of land which the Mechanicsburg Club, Inc., a non-profit corporation, by deed dated June 1, 1989 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 33-Z, page 358, granted and conveyed unto Debra Eckstine Long, Mortagor herein. f CJ C „? ? i -..- _'.i d N _._ 7 :{ WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff NOTICE TO LIEN HOLDERS SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. NOTICE PURSUANT TO PA R.C.P. 3129.1 and 3129.2 Notice is hereby given to the following parties who hold one or more mortgage, judgment or tax liens against the real estate of Debra Eckstine-Ralph, a/k/a Debra Eckstine Long. Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment I Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Compan y Legal Department Two North Ninth Street Allentown, PA 18101 United Water Pennsylvania, Inc. Mechanicsburg Operations Leal Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 You are hereby notified that on Wednesday, September 6, 2006, at 1000 A.M., prevailing time, by virtue of a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, on the judgment of Sovereign Bank vs. Salon Trends, Inc., et al., Docket No. 05-6021, the Sheriff of Cumberland County, Pennsylvania will expose at Public Sale in the Sheriff's Office in the Court House, real estate of Debra Eckstine-Ralph known and numbered as Parcel No. 19-23-0565-019, located at I1-17 Railroad Avenue, Mechanicsburg Boro Township. Mechanicsburg. Pennsylvania 17055, Cumberland County, Pennsylvania. A description of said real estate is hereto attached. A schedule of distribution will be filed by the Sheriff on a date specified by the Sheriff not later than thirty (30) days after the sale. Distribution will be made in accordance with the schedule unless exceptions are filed thereto within ten (10) days after the filing of the schedule. 225777-2 6 You are further notified that the lien you hold against said real estate will be divested by the sale and that you have an opportunity to protect your interest, if any, by being notified of said Sheriff's Sale. WEIR E S LLP Dated: March 17, 2006 By DANIE GERTY, E QUIRE Attorney for Plaintiff, Sovereign Bank 225777-2 LEGAL DESCRIPTION 11-17 Railroad Avenue Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 19-23-0565-019 ALL that certain tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg, in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BEGINNING at a point, said point being at the intersection of Railroad Avenue and Strawberry Alley, thence along the eastern right-of-way line of Railroad Avenue, South seventeen (17) degrees thirty (30) minutes zero (00) seconds East, a distance of eighty-four and thirty-five one-hundredths (84.35) feet to a point; thence along lands now or formerly of Harold R. Stone, South seventy-two (72) degrees six (06) minutes sixteen (16) seconds West, a distance of ninety-three and fifty-one one-hundredths (93.51) feet to a point; thence along lands now or formerly of Thomas C. Wetzel, North seventeen (17) degrees forty-five (45) minutes forty-four (44) seconds West, a distance of eighty-four and eighty hundredths (84.80) feet to a point; thence along the southern right-of-way line of Strawberry Alley, North seventy-two (72) degrees twenty-two (22) minutes forty-seven (47) minutes East, a distance of ninety-three and eighty- nine one-hundredths (93.89) feet to the place of BEGINNING. CONTAINING 7,925 square feet. BEING 11-13-15 Railroad Avenue, Mechanicsburg, Cumberland County, Pennsylvania. IT BEING the same tract of land which the Mechanicsburg Club, Inc., a non-profit corporation, by deed dated June 1, 1989 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 33-Z, page 358, granted and conveyed unto Debra Eckstine Long, Mortagor herein. ?> ;:- - ,: -„ ._? N N '17 ? ? a,. `? ? ?? <_rt n WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. AFFIDAVIT PURSUANT TO RULE 3129.1 Sovereign Bank , plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution filed the following information concerning the real property located at 1. Name and Address of Owner or Reputed Owner: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 225777-2 2. Name and Address of Defendant in the Judgment: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph Debra Eckstine-Ralph 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 Salon Trends, Inc. 671 Shippensburg Road Newville. PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville. PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 Name and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Sovereign Bank Address (if address cannot be reasonably Ascertained, please so indicate 601 Penn Street Reading, PA 19601 4. Name and address of the last recorded holder of every mortgage of Record: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Readin)z, PA 19601 225777-2 5. Name and address of every other person who has any record lien on their property: Name Address if address cannot be reasonably Ascertained, please so indicate 6. Name and address of every other person who has any record interest In the property and whose interest may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle. PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 225777-2 United Water Pennsylvania, Inc. Mechanicsburg Operations Legal Department 2411 East Park Circle Harrisburg, PA 17111 PPL Electric Company Legal Department Two North Ninth Street Allentown. PA 18101 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 PA C.S. See. 4904 relating to unsworn falsification to authorities. WEIR PAR LP Dated: March 17, 2006 By: DANIEL D. HAG T , SQUIRE The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff 225777-2 C? `?' .?{ _a r.? fv ?? i?_ 7w T1 _ L. J •,..,1 ? (it WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. ORDER AND NOW, this 31 'g? day of 2006, upon consideration of the Petition of Defendant, Rodney L. Rager, to Strike/Open Judgment Entered by Confession, it is hereby ORDERED that Defendant Rodney L. Rager's Petition to Open Judgment Entered by Confession is GRANTED in part and DENIED in part, as follows: 1. That portion of the judgment entered in this matter against Defendant Rodney L. Rager arising out of the $385,000.00 Promissory Note dated July 3, 2001, referenced in the Complaint in Confession of Judgment as Loan No. 1, be and hereby is opened as to Defendant Rodney L. Rager, only. 2. That portion of the judgment arising out of the $50,000.00 Promissory Note dated July 3, 2001, referenced in the Complaint in Confession of Judgment as Loan No. 2, is not opened. Y IT IS FURTHER ORDERED that Defendant Rodney L. Rager's Petition to Strike Judgment is DENIED; IT IS FURTHER ORDERED that this Order is limited to Rodney L. Rager's Petition to Strike/Open Judgment and does not modify or alter the judgment, entered by confession in this matter, as to Defendants, Salon Trends, Inc., Laura L. Davis, William L. Davis, and Debra Eckstine-Ralph. BY THE COURT: THE HONORABLE M.LqEE ('?\ C )L C A?1 _ ? ii ?u WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. AFFIDAVIT PURSUANT TO RULE 3129.2 AND RETURN OF SERVICE PURSUANT TO PA R.C.P. 405 OF NOTICE OF SALE Daniel D. Haggerty, Esquire, attorney for Plaintiff, Sovereign Bank sets forth as of the date of the praecipe for the writ of execution was filed the following information concerning the real property located at 107 E. Main Street, Mechanicsburg Boro Township, Mechanicsburg, Pennsylvania 17055, to be sold at Sheriffs Sale on September 6, 2006, at 1000 a.m. As required by PA R.C.P. 3129.2(a) Notice of Sale has been given in the manner required by P.A.R.C.P. 3129(c) on each of the persons or parties named at the addresses set forth below on the date and in the manner noted by the names of each and copies of each notice together with return receipts or proof of mailing are attached as Exhibits. Debra Eckstine-Ralph was served at 11-17 Railroad Avenue, Mechanicsburg Boro Township, Mechanicsburg, Pennsylvania 17055 by Certified Mail pursuant to P.A.R.C.P. 430 with a copy of the attached documents. 1, Notice of Sheriff Sale of Real Property pursuant to Pennsylvania Rule of Civil Procedure 3129.2; 2. Affidavit Pursuant to Rule 3129.1; 3. Praecipe for Writ of Execution; and 4. Writ of Execution. 225777-2 Debra Eckstine-Ralph was personally served with the Writ Notice/Poster in accordance with P.A.R.C.P. 3129.2 (c)(1)(i)(A), for which a separate return of service has been filed with the Court. The Lienholders stated below were served by ordinary mail at the addresses provided with the return address of the Plaintiff appearing thereon with a copy of the attached document. The Form 3817 Certificate of Mailing attached. Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg BOrO Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 United Water Pennsylvania, Inc. Mechanicsburg Operations Legal Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shivpensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 225777,2 William L, Davis 671 Shippensburg Road Newville, PA 17241 Rodney L. Rage 201 Madara Drive Hanover, PA 17331 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unworn falsifications to authorities. Date: April 17, 2006 WEIR & PARTN S L' By: Daniel D. aggerty, squire Counsel for Plaintiff, Sovereign Bank 225777-2 U.S . Post al Ser vice,, , CE RTIF IED MAIL RECE IPT ,,, (Do mestic M ail Only ; No Ins urance Cov erage Provided) p D Postage $ S p Certified Fee ED F3 Return Receipt Fee ` (Endorsement Required) Restricted Delivery Fee (Endorsement Required) m p Total Postage P - @ WZ U-) C3 sent To Debra Eckstine Ralph I` srreatavtaa.; 11-17 Railroad Avenue or PO Box No. cuy:siare,-zia. Mechanicsburg, PA 17055 ¦ Complete Items 1, 2, and 3. Also oorrlpiew ^^: Rem 4 if Restricted Delivery Is dealred. ¦ Print your name and address on the reverse t . so that we can retum the card to you. ¦ Attach this. card to the back of the, mallpleMA { C. of or on the trait ff spwe p9mrMs. 0. Is N Ywra 1, ArtMAe Addressed to: M Y 6, iiral» ddN ery 9 Debra Eckstine Ralph Uj ?? r 11 17 Railroad Avenue Z Mechanicsburg, PA 17055 3. TOO OMdMad ? txpress Faad RspkMed ? Return Receipt for Marohendfae _ --,1 O Insured Mall 0 C.O.D. , -- -- 4. Restricted Deilvery FArs Fee) ? Yes 2, Article Number 7005 0390 0004 6 1795 8709 (rranstar from service label) ...... Ps Form 381Algust 2001 Drnnllrlb lisaln' .. losses-oz-n+-lsno __ MAY RE USED FOR DOMESTIC AND INTERNATIONAL Received From: Daniel D. Haggerty, Esquire Weir & Partners LLP Suite 500, The Widener Building 1339 Chestnut Street - Philadelphia, PA 1 One piece of ordinary mail addressed to: .c' Debra Eckstine Ralph \ 11-17 Railroad Avenue Mechanicsburg, PA 17055 PS Form 3817, Mar. 1989 0 ? r C cii ?1:Ih ?. 3i7? US_ POSTAL SERVICE CERTIFICATE OF MAILING FOR OOMFcnr nun ImTrnN>TnnNAi MAIL DOES NOT Q INSURAN( n V)`•:• . Received From Ow piece of ordina, Form 3877, January 2001 Daniel D. Haggerty, Esquire Weir & Partners LLP O' ` Suite 500, The Widener. ` ' 1339 Chestnut eet ??` APO 6-, Philadelphia, PA 191107, MI`' c ? ' .? 4, t Borough of Mechany? c 36 W. Allen StretNrl Mechanicsburg, PA 1705514 '"UVIDE FOR INSURANCE-pOSTMA$ I CN yr I IUNAL MAIL Received F" Daniel D. Haggerty, Esgt Weir & Partners LLP Suite 500, The Widener B 1339 Chestnut Street Philadelphia, PA 191 One piece of ordinary mail addressed to DOES 1R 1.0 20* Rodney L. Rager 201 Madara Drive Hanover, PA 17331 PS Form 3817, Mar. 1989 q!? z '?31fNn ... ,? e? ? Y + sD MAY BE USED FOR DOME' PROVIDE FOR INSURANC i---- Daniel D. Haggerty, Esquire Receved From Weir & Partners LLP Suite 500, The Widener Buildi 1339 Chestnut Street Philadelphia, PA 19.107 one piece of ordinary Cumberland County Tax Mini Bui 1 Courthouse Square Carlisle, PA 17013 IY4. YJ`?-' *rcw _ w 7(I Z to LL tl iA ; v ?e LL f w 4 r,?,c' ?31Mn _,,; g MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOfl INSURANCE P . OSTMASTER Received From, Daniel D. Haggerty, Esquire Weir & Partners LLP Suite 500, The Widener Builder Cra, 1339 Chestnut Street Philadelphia, PA 19107 One piece of ortlinary mail addressed to: :T±r i; Laura L. Davis 671 ShippensburgRoad Newvillc, PA 17241 rrs;• PS Form 3817, Mar. 1989-_- r r ? MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIOE FOR INSURANCE-POSTMASTER 0 Received From Daniel D. Haggerty, Esquire - f I ' Weir & Partners LLP d Suite 500, The Widener Buildiisq_ 1339 Chestnut Street u s Philadelphia, PA 19107 Sri One piece of ordinary mail addressed m: , r S !?: ia( William L. Davis - 671 Shippensburg Road Newville, PA 17241 PS Form 3817, Mar. 1989 Received From: Daniel D. Haggerty, Esquire 'A a a iq Weir & Partners LLP 9kl_ Q- The Widener Building Suite 500 zs OI; _; , 1339 Chestnut Street w ?+ Philadelphia, PA 14t07 ve Y One piece of ordinary mail addressed to Mechanicsburg Boro Sewer Authority- 36 W. Allen Street yr,. •- .r:, Mechanicsburg, PA 17055 ?., PS Form 3817, Mar. 1989 .4:i MAY RE USED FOR PROVIDE FOR INSU Received From: INTERNATIONAL MAIL, --ru, IMAy IRN i=li If Daniel D. Haggerty, Esquire Weir & Partners LLP =O.I The Widener Buhl, ._: Suite 500 , 1339 Chestnut Stree oaf u Philadelphia, PA 19107 One piece of ordinary mail addressed to: PPL Electric Company Legal Department TWO North Ninth Street Allentown, PA 18101 PS Form 3817, Mar. 1989 r?,INn •r, MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received Fram: Daniel D. Haggerty, Esquire Weir & Partners LLP i O Suite 500, The Widener Btr? ? O' 1339 Chestnut Stre4 a-- Philadelphia, PA 19107 ?QU n n ppp One piece of ordinary mail addressed to: x LL. Internal Revenue Servic? Q Va w 228 Walnut Street Harrisburg, PA 17108 *+ PS Form 3817, Mar. 1989 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DW' -...__`..•?."'••1 ••^.. _e", O Received From'. One piece of o,d us- - ' Daniel D. Haggerty, Esquire lj,i, C73'' 111 Weir&PartnersLLP Il O' - Suite 500, The Widener Buildini ' O 1339 Chestnut Street Philadelphia, PA e ?. J Cumberland County Tax.*xsFssme ? 1 Courthouse Square - ?c Q?1fNn Carlisle, PA 17013 PS Form OF ICE AY BE USED FOR DO, ROVIDE FOR INSURAI Received From One piece of ordinar 0 Daniel D. Haggerty, Esquire1Ct Weir & Partners LLP Mg, ? Suite 500, The Widener Buildi f p d',' ?; 1339 Chestnut Street,'" Philadelphia, PA 19107 O I.. Commonwealth of Pennsylvania PA Department of Revenue - Strawberry Square Fourth and Walnut Streets Lobb; Harrisburg, PA 17128-0101'' r Forrn 3817, January 2001 y'3 U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DO' PROVIDE FOR "S' IV Daniel D. Haggerty, Esquire , NJ Im" Received From: Weir & Partners LLP Suite 500, The Widener Building ; p IL 1339 Chestnut Stre ? ' Philadelphia, PA 19P y One piece of proper cc ^ ° d ; Salon Trends, Inca a 671 Shippensburg Road ^3JfNf, Newville, PA 17241 f 7F.,. 3817, January 2001 MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE POSTMASTER Received From: Daniel D. Haggerty, Esquire $I ? - ?aCi!' Weir & Partners LLP The Widener Bu11 Suite 500 O , 1339 Chestnut Street Philadelphia, PA 1910 01R - EiT ?. LPG One place of ordinary mail addressed to O u. z: United Water Pennsylvania, Inc. b Mechanicsburg Operations %?ilNfl Legal Department 2411 East Park Circle Harrisburg, PA 17111 PS Form 3817, Mar. 1989 - ].• WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTfNE-RALPH RODNEY L. RAGER Defendants AFFIDAVIT PURSUANT TO RULE 3129.2 AND RETURN OF SERVICE PURSUANT TO PA R.C.P. 405 OF NOTICE OF SALE Daniel D. Haggerty, Esquire, attorney for Plaintiff, Sovereign Bank sets forth as of the date of the praecipe for the writ of execution was filed the following information concerning the real property located at 107 E. Main Street, Mechanicsburg Boro Township, Mechanicsburg, Pennsylvania 17055, to be sold at Sheriff's Sale on September 6, 2006, at 1000 a.m. As required by PA R.C.P. 3129.2(a) Notice of Sale has been given in the manner required by P.A.R.C.P. 3129(c) on each of the persons or parties named at the addresses set forth below on the date and in the manner noted by the names of each and copies of each notice together with return receipts or proof of mailing are attached as Exhibits. Debra Eckstine-Ralph was served at 107 E. Main Street, Mechanicsburg Boro Township, Mechanicsburg, Pennsylvania 17055 by Certified Mail pursuant to P.A.R.C.P. 430 with a copy of the attached documents. 1. Notice of Sheriff Sale of Real Property pursuant to Pennsylvania Rule of Civil Procedure 3129.2; 2. Affidavit Pursuant to Rule 3129.1; 3. Praecipe for Writ of Execution; and 4. Writ of Execution. 225777-2 Debra Eckstine-Ralph was personally served with the Writ Notice/Poster in accordance with P.A.R.C.P. 3129.2 (c)(1)(i)(A), for which a separate return of service has been filed with the Court. The Lienholders stated below were served by ordinary mail at the addresses provided with the return address of the Plaintiff appearing thereon with a copy of the attached document. The Form 3817 Certificate of Mailing attached. Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle. PA 17013 United Water Pennsylvania, Inc. Mechanicsburg Operations Leal Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shippensburg Road Newville. PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 225777-2 William L. Davis 671 Shitmensburg Road Newville. PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. Section 4904 relating to unsworn falsifications to authorities. Date: April 17, 2006 -n m to Ir 0 _n Pos age a V 0 (ieYllfl9d Fee z p Return Receipt Fee p MAR,- I (Endorsement Reryulred) R81B ti ) O Reatricled De'" Fee O 0' (Endorsement RegUired) m M l'otal Postage ° °--- C 47 2/ J' /k u1 o 7MT Debra Eckstine Ralph 107 E. Main Street r ,Mechanicsburg, PA 17055 WEIR & PARTNERS LLP By: Daniel D. Hagge squire Counsel for Plaintiff, Sovereign Bank ¦ Coerpisle heals 1. 2, old 3. Also complete A, Nam 4It Pmetricted DWKwy Is deNred. ¦ Print your name and address on the reverse Ila so that we can return the card to you. B. • Attach this card to the track of the 1plew, or on the front if space permits. 1. Article Addressed to: Debra Eckstine Ralph 1 07 E. Main Street Mechanicsburg, PA 17055 D. Is Uhwy address du U YES: enter deIN" 0 Agent 4/744'"0 Addressee c. Date or oeiwery Yea Q fly 9 D tiff F XJ&rttW Mao ° 9 J Registered 0 Retum Reeeipt for Merohandlse 0 Insured Mae 0 C.O.D. 4. Restricted Detlvery7 (EXbe Feel 0 yes 2. AnWe Number _ larwYr seam servks ab.? 7005 0390 0004 6095 8716 225777-2 PS Farm 3811, August 2001 Domesa0 Rsrum Recalpt 102595-02-M-1500 MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE POSTMASTER Received From. Daniel D. Haggerty, Esquire Weir & Partners LLP Suite 500, The Widener Building 1339 Chestnut Street Philadelphia, PA 191 One piece of ordinary mall addressed to'. Debra Eckstine Ralph 107 E. Main Street Mechanicsburg, PA 17055 - PS Form 3817, Mar. 1989 „._ f1% it --.? r MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER - 4TM Received From: Daniel D. Haggerty, Esquire 'T Weir & Partners LLP Suite 500, The Widener Building 1339 Chestnut Street Philadelphia, PA 19107 v' One piece of ordinary mail addressed to: Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 PS Form 3817, Mar. 1989 1 ;tamps U.S. POSTAL SERVICE CERTIFICATE OF MAIL 3a and MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOE sire of current PROVIDE FOR INSURANCE-POSTMASTER Q Received From. Daniel D. Haggerty, Esqu Weir & Partners LLP = 40 Suite 500, The Widener Bui I , `' 1339 Chestnut Street Philadelphia, PA 1910, ?.? G 1 -' One piece of ordinary mail addressed to: l t t Mechanicsburg Boro Sewer At o -? ? 36 W. Allen Street llef,a Mechanicsburg PA 1705 ?;" , I PS Form 3817, Mar. 1989 ? T`, A? BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT VIDE FOR INSURANCE-POSTMASTER CD 't r Rervived From Daniel D. Haggerty, Esquire Weir & Partners LLP Suite 500, The Widener Building 1339 Chestnut Street N " Philadelphia, PA 19107 Q y rj s , P -_ Ji-.d 1 ? a O One piece of ordinary mail addressed to : a r w, N x Salon Trends, Inc 671 Shippensburg Road Newville, PA 17241 , PS Form 3817, Mar. 1989 +?r U.S. POSTAL SERVICE CERTIFICATE F MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: Daniel D. Haggerty, Esquire r Weir & Partners LLP ' Suite 500,T he Widener Building 1339 Chestnut Street n -,; UNIrt Philadelphia, PA 19107 l? s ."ry S, ? 9m One piece of ordinary mail addressed to: l b ? s. „15 A a l ?-0. United WaterPennsyvani ' U a r1s MechanicsburgOpera60 4W Legal Department o o a 2411 East Park Circle Harrisburg, PA 17111 PS Form 3817, Mar. 1989 U.S. POSTAL SERVICE CERTIFICATE OF MAILING M AY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From: Daniel D. Haggerty, Esquire CZ Weir & Partners LLP Suite 500, The Widener Building ?1 z Q;;' 1339 Chestnut Street o .: w Philadelphia, PA 19107 cs One Piece of ordinary mail addressed to; \f? Y > v t C) pr y, . iD ' PPL Electric Company +1 P I dT= . Legal Department Two North Ninth Street a Allentown, PA 18101 PS Form 3817, Mar. 1989 MAY BE USED F08 DOMESTIC AND INTERNATIONAL MAIL, PROVIDE FOR INSURANCF_Pncrneecrco Received From: Daniel D. Haggerty, Esquire Weir & Partners LLP Suite 500, The Widener Building 1339 Chestnut Street Philadelphia, PA 19107 One Piece of ordinary mail addressed to William L. Davis 671 Shippensburg Road Newville, PA 17241 1y? . t7! r6 yA PS Form 3817, Mar. 1989 W ! S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL. DOES NOT PROVIDE FOR INSIIR4Nr'F-Pnernnn c.ce Received From Daniel D. Haggerty, Esquire Weir & Partners LLP , The Widener Building Suite 500 , 1339 Chestnut Street F Philadelphia, PA 19107 RI ti 1 One piece of ordinary mail addressed le: W Rodney L. Rager t^ 201 Madara Drive Hanover, PA 17331 I, .r PS Form 3817, Mar. 1989 r { t ;? 1 u s PosrAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER Received From Daniel D. Haggerty, Esquire h L. ?< Weir & Partners LLP ?r O, Suite 500, The Widener Building 1339 Chestnut Street ' fA Philadelphia, PA 19107 One piece of ordinary mall addressed to: a_ v." r r? Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 M r? `r"+s PS Form 3817, Mar. 1989 "' ?',' U.S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOS" PROVIDE FOR INSURAp _. _.... ..••' ^nfO `^T Daniel D. Haggerty Esquire A. ReneivedRnm: , Weir & Partners LLP Suite 500, The Widener Buildir, O 1339 Chestnut Street Philadelphia, PA 19107 One piece of ordinar Commonwealth of Penns ylvania f R N W v evenue PA Department o a Strawberry Square s`l? rNO " - Fourth and Walnut Streets Lobby .7 Harrisburg, PA 17128-0101 ' 'S Form 3817, January 2001 w 4 il. U.S . POSTAL SERVICE CERTIFICATE OF MAILING MAY USED FOR DAM'°'^ "'^ ' ^^' 'r'^' " ••" ^^^^ • ^' PROVID IDE FOR INSURAI c , rl '^ t ?! YI r Daniel D. Haggerty, Esquire a1` Renewed From_ Weir & Partners LLP Suite 500 The Widener Buil&r , 1339 Chestnut Street ?sr,a Philadelphia, PA 19107 7 PO` - One piece of ordlnerv .eau =Aarxm.l fin- .. LY a r u- Borough of Mechanicsburg ?cfs J 36 W. Allen Street TtrNo -' Mechanicsburg, PA 17055 t PS Form 3817, January 2001 U. S. POSTAL SERVICE CERTIFICATE OF MAILING MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-POSTMASTER += Received From: Daniel D. Haggerty, Esquire ?. ? Weir & Partners LLP The Widener Building Suite 500 4 (D t , 1339 Chestnut Street 9r` PA 19107 Philadelphia q 4rl °_ I , . , One piece of ordinary mail addressed to: d t ?? u gym, Laura L. Davis "-41Nft _ 671 Shippensburg Road Newville, PA 17241 y' PS Form 3817, Mar. 1989 #' MAY BE USED FOR DOMESTIC AND INTERNATIONAL MAIL, DOES NOT PROVIDE FOR INSURANCE-PO5TMASTER Q r'AA Received From Daniel D. Haggerty, Esquire eT? Weir & Partners LLP p Suite 500, The Widener Building€ f^ cc 1339 Chestnut Street i7, Philadelphia, PA 19107 One piece of ors....,., ,..eii auaressed to: k';. :l. ?u_ ?l a. a .' a Cumberland County Tax Claim B SOS liNn a 1 Courthouse Square ` Carlisle, PA 17013 ?`? PS Form 3817, Mar. 1989 ".P t COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND ISS: I, Robert P. Ziegler, Recorder of Deeds in and for said County and State do hereby certify that the Sheriff's Deed in which Debra Eckstine-Ralph is the grantee the same having been sold to said grantee on the 6th day of Sept A.D., 2006, under and by virtue of a writ Execution issued on the 22nd day of March, A.D., 2006, out of the Court of Common Pleas of said County as of Civil Term, 2005 Number 6021, at the suit of Severeign Bank against Salon Trenda Inc Laura L Davis William L Davis Debra Eckstine-Ralph & Rodney L Rager is duly recorded in Deed Book No. 277, Page 900. IN TESTIMONY WHEREOF, I have hereunto set my hand and seal of said office this _Z day of , A.D. r-2610 Recorder of Deeds of Dear, Comb *W C =q, Ce". ?A 0onft"E0ftftfMMW4g01JWW10 Sovereign Bank VS Salon Trends, Inc., Laura L. Davis et al In the Court of Common Pleas of Cumberland County, Pennsylvania Writ No. 2005-6021 Civil Term William Cline, Deputy Sheriff, who being duly sworn according to law, states that on May 23, 2006 at 7:10 o'clock PM, he served a true copy of the within Notice of Sheriffs Sale of Real Property pursuant to PA RCP 3129.2, Affidavit Pursuant to PA RCP 3129. 1, Preacipe for Writ of Execution and Writ of Execution, in the above entitled action, upon the within named defendants, to wit: Debra Eckstine-Ralph, by making known unto Debra Eckstine-Ralph, personally, at 555 Harvest Lane, Mechanicsburg, Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and correct copy of the same. Richard Smith, Deputy Sheriff, who being duly sworn according to law, states that on June 28, 2006 at 9:40 o'clock A.M., he posted a true copy of the within Real Estate Writ, Notice, Poster and Description, in the above entitled action, upon the property of Debra Eckstine-Ralph located at 107 East Main Street, Mechauieshurg, Pennsylvania, 17055 according -to law. R. Thomas Kline, Sheriff, who being duly sworn according to law, states he served the above Real Estate Writ, Notice, Poster and Description in the following manner: The Sheriff mailed a notice of the pendency of the action to the within named defendant, to wit: Debra Eckstine-Ralph, by regular mail to their last known address of 107 East Main Street, Mechanicsburg, Pennsylvania, 17055. This letter was mailed under the date of June 26, 2006 and never returned to the Sheriffs Office. R. Thomas Kline, Sheriff, who being duly sworn according to law, states that after due and legal notice had been given according to law, he exposed the within described premises at public venue or outcry at the Courthouse, Carlisle, Cumberland County, Pennsylvania on September 06, 2006 at 10:00 o'clock A.M. He sold the same for the sum of $150,000.00 to Michael Eckert for Debra Eckstine-Ralph. It being the highest bid and best price received for the same, Debra Eckstine-Ralph, of 555 Harvest Lane, Mechanicsburg, PA 17055, being the buyer in this execution, paid to Sheriff R. Thomas Kline the sum of $157,252.70. Sheriffs Costs: Docketing $30.00 Poundage 3,000.00 Posting Bills 15.00 Advertising 15.00 Acknowledging Deed 30.00 Auctioneer 10.00 Prothonotary 1.00 Mileage 18.48 Levy 15.00 Surcharge 60.00 Law Journal 269.00 Patriot News 287.60 Share of Bills 19.31 Distribution of Proceeds 25.00 Sheriff s Deed 43.00 $3,838.39 So w R. Thomas Kline, Sheriff BY\ Real Estate ergeant ? / ,/,-/o (, Q4 -. c ' 3U?? (;? 5 ,1, p3!? I. YJ WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. WRIT OF EXECUTION NOTICE This paper is a Writ of Execution. It has been issued because there is a judgment against you. It may cause your property to be held or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. The law provides that certain property cannot be taken. Such property is said to be exempt. There is a debtor's exemption of $300.00. There are other exemptions which may be applicable to you. Attached is a summary of some of the major exemptions. You may have other exemptions or other rights. If you have an exemption, you should do the following promptly: (1) Fill out the attached claim form and demand for a proper hearing; (2) Deliver the form or mail it to the Sheriff s office at the address noted. You should come to Court ready to explain your exemption. If you do not come to Court and prove your exemption, you may lose some of your property. 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 YO WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 Dated: March 17, 2006 WEIR & PARTNERS LLP BY: - Daniel D. Haggerty, squire Attorney for Plaintiff 255595-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. CLAIM FOR EXEMPTION To the Sheriff: I, the above-named defendant, claim exemption of property from levy or attachment: (1) From my personal property in my possession which has been levied upon, (a) I desire that my $300.00 statutory exemption be (i) set aside in kind (specify property to be set aside in kind): (ii) paid in cash following the sale of the property levied upon; or (b) I claim the following exemption (specify property and basis of exemption); (2) From my property which is in the possession of a third party, I claim the following exemptions: (a) my $300.00 statutory exemption: in cash, *I in kind (specify property); (b) Social Security benefits on deposit in the amount of (c) other (specify amount and basis of exemption): I request a prompt hearing to determine the exemption. Notice of a hearing should be given to me at 107 E. Main Street Mechanicsburg, Pennsylvania 17055. I verify that the statements made in this Claim for Exemption are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities. DEBRA ECKSTINE-RALPH, a/k/a DEBRA ECKSTINE LONG Dated: THIS CLAIM TO BE FILED WITH THE OFFICE OF THE SHERIFF OF CUMBERLAND COUNTY: Sheriff of Cumberland County Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 Telephone-717-240-6390 255595-1 MAJOR EXEMPTIONS UNDER PENNSYLVANIA AND FEDERAL LAW $300.00 statutory exemption 2. Bibles, school books, sewing machines, uniforms and equipment 3. Most wages and unemployment compensation 4. Social security benefits Certain retirement funds and accounts 6. Certain veteran and armed forces benefits 7. Certain insurance proceeds 8. Such other exemptions as may be provided by law. 255595-1 The judgment under or pursuant to which your property is being sold is docketed to: Sovereign Bank The name of the owner or reputed owner of this property is: Debra Eckstine-Ralph a/k/a Debra Eckstine Long A schedule of distribution, being a list of the persons and or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and Municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. It has been issued because there is a judgment against you. It may cause your property to be held to be sold or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE: Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of Cumberland County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or procedure used against you. 2. After the Sheriff's Sale you may file a petition with the Court of Common Pleas of Cumberland County to set aside the sale for a grossly inadequate price or for other proper cause. This petition must be filed before the Sheriff's Deed is delivered. 225777-2 A petition or petitioners raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of Cumberland County at one of the Court's regularly schedule business court sessions. The petition must be served on the attorney for the Creditor at least two (2) business days before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office, Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013, before presentation of the petition to the Court. WEIR 'FARTNERS ILL By: A A DANIEL D. HAGG TY, SQ. The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff Dated: March 17, 2006 225777-2 LEGAL DESCRIPTION 107 E. Main Street Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 18-23-0565-112 ALL that certain house and lot of ground situate on the North side of East Main Street, in the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING on the South by Main Street, on the East by lot now or late of Senseman; on the North by Strawberry Alley and on the West by lot now or late of Myers. CONTAINING 31 feet on said Main Street and extending at an even width 200 feet to the alley aforementioned. Having thereon erected a brick dwelling house known and numbered as 107 East Main Street. IT BEING the same tract of land which Stephen P. Gift and April M. Gift, husband and wife, by deed dated September 12, 1997 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 164, page 664, granted and conveyed unto Debra E. Ralph, Mortgagor herein. WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff NOTICE TO LIEN HOLDERS SOVEREIGN BANK Plaintiff, V. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants NOTICE PURSUANT TO PA R.C.P. 3129.1 and 3129.2 Notice is hereby given to the following parties who hold one or more mortgage, judgment or tax liens against the real estate of Debra Eckstine-Ralph, a/k/a Debra Eckstine Long. Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg Boro Sewer Authori ty 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 United Water Pennsylvania, Inc. Mechanicsburg Operations Le awl Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 You are hereby notified that on Wednesday, September 6, 2006, at 10:00 A.M., prevailing time, by virtue of a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, on the judgment of Sovereign. Bank vs. Salon Trends, Inc., et al., Docket No. 05-6021, the Sheriff of Cumberland County, Pennsylvania will expose at Public Sale in the Sheriff's Office in the Court House, real estate of Debra Eckstine-Ralph known and numbered as Parcel No. 18-23-0565-112, located at 107 E. Main Street, Mechanicsburg Boro_ Township, Mechanicsburg, Pennsylvania 17055, Cumberland County, Pennsylvania. A description of said real estate is hereto attached. A schedule of distribution will be filed by the Sheriff on a date specified by the Sheriff not later than thirty (30) days after the sale. Distribution will be made in accordance with the schedule unless exceptions are filed thereto within ten (10) days after the filing of the schedule. 225777-2 You are further notified that the lien you hold against said real estate will be divested by the sale and that you have an opportunity to protect your interest, if any, by being notified of said Sheriff's Sale. WEIRi & P L P Dated: March 17, 2006 By: DANIEL D. HAGGERTY, QUIRE Attorney for Plaintiff, Sovereign Bank 225777-2 LEGAL DESCRIPTION 107 E. Main Street Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 18-23-0565-112 ALL that certain house and lot of ground situate on the North side of East Main Street, in the Borough of Mechanicsburg, County of Cumberland and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING on the South by Main Street, on the East by lot now or late of Senseman; on the North by Strawberry Alley and on the West by lot now or late of Myers. CONTAINING 31 feet on said Main Street and extending at an even width 200 feet to the alley aforementioned. Having thereon erected a brick dwelling house known and numbered as 107 East Main Street. IT BEING the same tract of land which Stephen P. Gift and April M. Gift, husband and wife, by deed dated September 12, 1997 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 164, page 664, granted and conveyed unto Debra E. Ralph, Mortgagor herein. WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK V. Plaintiff, SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants t . CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05-6021 AFFIDAVIT PURSUANT TO RULE 3129.1 Sovereign Bank , plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution filed the following information concerning the real property located at 1. Name and Address of Owner or Reputed Owner: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 225777-2 2. Name and Address of Defendant in the Judgment: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville. PA 17241 Rodney L. Rager 201 Madara Drive Hanover, PA 17331 Name and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 4. Name and address of the last recorded holder of every mortgage of Record: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 225777-2 Name and address of every other person who has any record lien on their property: Name Address (if address cannot be reasonably Ascertained lease so indicate 6. Name and address of every other person who has any record interest In the property and whose interest may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate 7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle PA 17013 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 225777-2 United Water Pennsylvania, Inc. Mechanicsburg erations Legal Department 2411 East Park Circle Harrisburg, PA 17111 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA_ 18101 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 PA C.S. Sec. 4904 relating to unsworn falsification to authorities. WEIR P R Dated: March 17, 2006 By: DANIEL D. AGGERTY, ESQ Weir & Partners LLP The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff 225777-2 01 :Z d G Z 8VW 9001 sou ?tl •.'?sa ?i+ v !J Jy%ii JAII 3HS 3rl1 JO 3J1330 WRIT OF EXECUTION iknd/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) N005-6021 Civil CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due Sovereign Bank Plaintiff (s) From Debra Eckstine-Ralph (1) You are directed to levy upon the property of the defendant (s)and to sell see legal description . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due$ 494,916.50 Interest from 11114105 to 3/17/06 Atty's Comm % Atty Paid $ 15.00 Plaintiff Paid Date: March 22, 2006 (Seal) L.L. $16,234.77 Plus interest from 3/17/06 at per diem rate of $131.99 Due Prothy $1.00 County Other Costs Prothonotary By: Deputy REQUESTING PARTY: Name Daniel D. Haggerty, Esquire Address: The Widener Building Suite 500, 1339 Chestnut Street Philadelphia, Pa. 19107 Attorney for: Plaintiff Telephone: (215)665-8181 Supreme Court ID No. 77894 Real Estate Sale # II On May 04, 2006 the Sheriff levied upon the defendant's interest in the real property situated in Mechanicsburg Borough, Cumberland County, PA Known and numbered as 107 East Main Street, Mechanicsburg, more fully described on Exhibit "A" filed with this writ and by this reference incorporated herein. Date: May 04, 2006 By: 04 ?? Real E ate Sergeant 01 -Z d 8Z WdW 9001 33W3HS 3H.I A 3J1j30 w. SCHEDULE OF DISTRIBUTION SALE NO. 11 Date Filed: October 06, 2006 Writ No. 2005-6021 Civil Term Sovereign Bank VS Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine-Ralph and Rodney L. Rager Sale Date: Buyer: Bid Price: Real Debt: Interest: Attorney C September 06, 2006 Michael Eckert $150,000.00 $494,916.50 39,069.04 osts: 15.00 Total: $534,000.54 DISTRIBUTION: Receipts: Cash on account (04/28/2006): $ 1,500.00 Cash on account (09/06/2006): 15,000.00 Cash on account (09/22/2006): 142,252.70 Total Receipts: $158,752.70 Disbursements: Sheriffs Costs $3,838.39 Legal Search 200.00 Transfer Tax - Local 2,026.35 Transfer Tax - State 2,026.35 Barry Heckard, Tax Collector 2,280.53 Borough of Mechanicsburg 213.64 Attorney Daniel Haggerty 1,500.00 Sovereign Bank 146,667.44 Total Disbursements: ($158,752.70) Balance for distribution: 0.00 So Answers: R. Thomas Kline Sheriff TITLE REPORT THE PREMISES ENDORSED HEREON ARE SUBJECT TO THE FOLLOWING ITEMS, WHICH WILL BE EXCEPTED IN THE POLICY UNLESS SATISFACTORY EVIDENCE PERMITTING THEIR REMOVAL IS PRODUCED. SHERIFF SALE NO. 11 Held Wednesday, September 6, 2006 Date: September 6, 2006 TAXES: Receipts for all taxes for the years 2003 to 2005 inclusive. Taxes for the current year 2006. WATER RENT: Company assumes no liability for private supply of water or sewer. SEWER RENT Receipts to be produced if services are lienable. MECHANICS' AND Possible unfiled Mechanics Liens and Municipal Claims. MUNICIPAL CLAIMS MORTGAGES: Listed Under Other Exceptions Below. JUDGMENTS: Listed Under Other Exceptions Below. INSTRUMENTS TO BE PRODUCED: Deed from Cumberland County Sheriff to dated , 2006, and recorded 2006, in Cumberland County Deed Book , Page RECITAL: Being the same premises which Stephen P. Gift and April M. Gift, by deed dated September 12, 1997 and recorded September 16, 1997 in the Office of the Recorder of Deeds in and for Cumberland County, in Carlisle, Pennsylvania, in Deed Book 164, Page 664 granted and conveyed to Debra E. Ralph, married woman. OTHER EXCEPTIONS: 1. The identity and legal competency of parties at the closing of this title should be established to the satisfaction of the closing attorney acting for this Company. 2. Rights or claims of parties in possession, if any, other than the owner. 3. Unrecorded easements, discrepancies or conflicts in boundary lines, shortage in area and encroachments which an accurate and complete survey would disclose. 4. Payment of State and local Real Estate Transfer Taxes, if required. 5. Public and private rights in the roadbed of East Main Street and in the roadbed of Strawberry Alley. 6. Mortgage in the amount of $385,000.00 given by Debra E. Ralph to Waypoint Bank dated July 3, 2001 and recorded July 10. 2001 in Mortgage Book 1727, Page 589. 7. Confession of Judgment filed by Sovereign Bank as Plaintiff against Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine Ralph, and Rodney L. Rager, as Defendants, in the Office of the Prothonotary of Cumberland County on November 22, 2005 to file number 2005-6021 in the amount of $494,916.50. 8. Rights granted to the Hampden Township Sewer Authority by instrument recorded in Miscellaneous Record Book 416, Page 718. 9. Satisfactory evidence to be produced that Debra Eckstine Ralph is one and the same person as Debra E. Ralph. 10. Satisfactory evidence to be produced that Debra Eckstine Ralph is sufficient for execution of property in the name of Debra E. Ralph. 11. Satisfactory evidence to be produced that proper notice was given to the holders of all liens and encumbrances intended to be divested by subject Sheriff Sale. 12. Real estate taxes accruing on and after January 1, 2007 not yet due and payable. It is to be noted that no search of Domestic Relations Records has been made to determine support arrearages regarding House Bill 1412, Act 58 of 1997, nor has any search been made for environmental liens in Federal District Court. ?r\W?A-A I - ?- Ro ert G. Frey, Agent Note: This Tide Report shall not be valid o i ing until countersigned by an authorized signatory. I K 4r THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Act No. 587, Approved May 16, 1929 Commonwealth of Pennsylvania, County of Dauphin} ss Joseph A. Dennison, being duly sworn according to law, deposes and says: That he is the Assistant Controller of The Patriot News Co., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 812 to 818 Market Street, in the City of Harrisburg, County of Dauphin, State of Pennsylvania, owner and publisher of The Patriot- News and The Sunday Patriot-News newspapers of general circulation, printed and published at 812 to 818 Market Street, in the City, County and State aforesaid; that The Patriot-News and The Sunday Patriot-News were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday/ Metro editions which appeared in the 19th and 26th day(s) of July and the 2nd day(s) of August 2006. That neither he nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That he has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot-News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of Dauphin in Miscellaneous Book "M", Volume 14, Page 317. PUBLICATION .................... ... .......... .. .................................... COPY Sworn to and su c ' be ore me this WEN f VANIA SALE # 11 Notarial Seal Terry L. Hu&si-.11, Notary Public ? Of Harrisburg, Dauphin Courtly fission res June 6, 2010 ?nnmhn. &nn*v1v ni Association of NotYries PUBLIC CUMBERLAND COUNTY SHERIFF'S OFFICE CUMBERLAND COUNTY COURTHOUSE CARLISLE, PA. 17013 ---------- the DWO A Of PROOF OF PUBLICATION OF NOTICE IN CUMBERLAND LAW JOURNAL (Under Act No. 587, approved May 16, 1929), P. L.1784 COMMONWEALTH OF PENNSYLVANIA : COUNTY OF CUMBERLAND ss. Lisa Marie Coyne, Esquire, Editor of the Cumberland Law Journal, of the County and State aforesaid, being duly sworn, according to law, deposes and says that the Cumberland Law Journal, a legal periodical published in the Borough of Carlisle in the County and State aforesaid, was established January 2, 1952, and designated by the local courts as the official legal periodical for the publication of all legal notices, and has, since January 2, 1952, been regularly issued weekly in the said County, and that the printed notice or publication attached hereto is exactly the same as was printed in the regular editions and issues of the said Cumberland Law Journal on the following dates, viz: July 21, July 28, and August 4, 2006 Affiant further deposes that he is authorized to verify this statement by the Cumberland Law Journal, a legal periodical of general circulation, and that he is not interested in the subject matter of the aforesaid notice or advertisement, and that all allegations in the foregoing statements as to time, place and character of publication are true. Marie WORN TO AND SUBSCRIBED before me this I _day of August. 2006 _ NOTARrAL SEAL v LOIS E. SNYDER, Notary Public Carlisle Boro, Cumberland County Mly Commission Expires March 5, 2009 74LAL TWAT! WS NO. 1 i Writ No. 2005-6021 Civil Sovereign Bank VS. Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine-Ralph, and Rodney L. Rager Atty.: Daniel Haggerty LEGAL DESCRIPTION 107 E. Main Street, Mechanics- burg Boro Township, Mechanics- burg, PA 17055, Parcel No. 18-23- 0565-112. ALL that certain house and lot of ground situate on the North side of East Main Street, in the Borough of Mechanicsburg, County of Cumber- land and State of Pennsylvania, bounded and described as follows, to wit: BEGINNING on the South by Main Street, on the East by lot now or late of Senseman; on the North by Strawberry Alley and on the West by lot now or late of Myers. CON- TAINING 31 feet on said Main Street and extending at an even width 200 feet to the alley aforementioned. Having thereon erected a brick dwelling house known and num- bered as 107 East Main Street. IT BEING the same tract of land which Stephen P. Gift and April M. Gift, husband and wife, by deed dated September 12, 1997 and re- corded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 164, page 664, granted and conveyed unto Debra E. Ralph, Mortgagor herein. ASSIGNMENT I, Michael J. Eckert, 765 Oars Bridge Road, Mechanicsburg, Pennsylvania 17050 k have purchased 107 W. Main Street, Mechanicsburg, Pennsylvania at a Cumberland County Sheriff s Sale. I hereby assign all my right, title and interest in said real estate through the sale to Debra Eckstine-Ralph. Dated: September 27, 2006 1 r Commonwealth of Pennsylvania ) ss. County of ?b? \ ) On this, the 27`x' day of September, 2006, before me, the undersigned officer, personally appeared Michael J. Eckert, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. COMMONWEALTH OF PENNSYLVANIA Notarial Seat Denyoe L Baughman, Notary Pubic Machani sburg Boro, Cumberlarxl County W Common E4*es Jan. S, 2008 Member,.Pennsylvania Association Of Notaries Notary lic COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND I SS: I, Robert P. Ziegler, Recorder of Deeds in and for said County and State do hereby certify that the Sheriff's Deed in which Debra Eckstine Ralph is the grantee the same having been sold to said grantee on the 6th day of Sept A.D., 2006, under and by virtue of a writ Execution issued on the 22nd day of March, A.D., 2006, out of the Court of Common Pleas of said County as of Civil Term, 2005 Number 6021, at the suit of Severeign Bank against Salon Trenda Inc Laura L Davis William L David Debra Eckstine-Rath & rodney L Raper is duly recorded in Deed Book No. 277, Page 914. IN TESTIMONY WHEREOF, I have hereunto set my hand p and seal of said office this 71E day of A. D. of Deeds Cff"Wd ft". Caft PA Mot tM Fht Mw4q a,w L 220 Sovereign Bank VS Salon Trends, Inc., Laura L. Davis et al In the Court of Common Pleas of Cumberland County, Pennsylvania Writ No. 2005-6021 Civil Term William Cline, Deputy Sheriff, who being duly sworn according to law, states that on May 23, 2006 at 7:10 o'clock PM, he served a true copy of the within Notice of Sheriffs Sale of Real Property pursuant to PA RCP 3129.2, Affidavit Pursuant to PA RCP 3129. 1, Preacipe for Writ of Execution and Writ of Execution, in the above entitled action, upon the within named defendant, to wit: Debra Eckstine-Ralph, by making known unto Debra Eckstine-Ralph, personally, at 555 Harvest Lane, Mechanicsburg, Cumberland County, Pennsylvania, its contents and at the same time handing to her personally the said true and correct copy of the same. . Douglas Ruzanski, Deputy Sheriff, who being duly sworn according to law, states that on June 28, 2006 at 9:32 o'clock A.M., he posted a true copy of the within Real Estate Writ, Notice, Poster and Description, in the above entitled action, upon the property of Debra Eckstine-Ralph located at 11-17 Railroad Avenue, Mechanicsburg, Pennsylvania, 17055 according to law. R. Thomas Mine, Sheriff, who being duly sworn according to law, states he served the above Real Estate Writ, Notice, Poster and Description in the following manner: The Sheriff mailed a notice of the pendency of the action to the within named defendant, to wit: Debra Eckstine-Ralph, by regular mail to her last known address of 555 Harvest Lane, Mechanicsburg, Pennsylvania, 17055. This letter was mailed under the date of June 26, 2006 and never returned to the Sheriffs Office R. Thomas Kline, Sheriff, who being duly sworn according to law, states that after due and legal notice had been given according to law, he exposed the within described premises at public venue or outcry at the Courthouse, Carlisle, Cumberland County, Pennsylvania on September 06, 2006 at 10:00 o'clock A.M. He sold the same for the sum of $211,000.00 to Michael J. Eckert for Debra Eckstine-Ralph. It being the highest bid and best price received for the same, Debra Eckstine-Ralph of 555 Harvest Lane, Mechanicsburg, PA 17055, being the buyer in this execution, paid to Sheriff R. Thomas Kline the sum of $225,439.68. Sheriff s Costs: Docketing $30.00 Poundage 4,220.00 Posting Bills 15.00 Advertising 15.00 Acknowledging Deed 30.00 Auctioneer 10.00 Law Library .50 Prothonotary 1.00 Mileage 18.48 Levy 15.00 Surcharge 60.00 r!? WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. NO. 05-6021 WRIT OF EXECUTION NOTICE This paper is a Writ of Execution. It has been issued because there is a judgment against you. It may cause your property to be held or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. The law provides that certain property cannot be taken. Such property is said to be exempt. There is a debtor's exemption of $300.00. There are other exemptions which may be applicable to you. Attached is a summary of some of the major exemptions. You may have other exemptions or other rights. If you have an exemption, you should do the following promptly: (1) Fill out the attached claim form and demand for a proper hearing; (2) Deliver the form or mail it to the Sheriffs office at the address noted. You should come to Court ready to explain your exemption. If you do not come to Court and prove your exemption, you may lose some of your property. 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 YO WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 WEIR & PARTNERS LLP BY: Davie . Haggerty, Esquire Attorney for Plaintiff Dated: March 17, 2006 255678-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK Plaintiff, CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION V. SALON TRENDS, INC. LAURA. L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. NO. 05-6021 CLAIM FOR EXEMPTION To the Sheriff. I, the above-named defendant, claim exemption of property from levy or attachment: (1) From my personal property in my possession which has been levied upon, (a) I desire that my $300.00 statutory exemption be (i) set aside in kind (specify property to be set aside in kind): (ii) paid in cash following the sale of the property levied upon; or (b) I claim the following exemption (specify property and basis of exemption); (2) From my property which is in the possession of a third party, I claim the following exemptions: (a) my $300.00 statutory exemption: in cash, (b) (c) in kind (specify property); social security benefits on deposit in the amount of other (specify amount and basis of exemption): I request a prompt hearing to determine the exemption. Notice of a hearing should be given to me at 11-17 Railroad Avenue Mechanicsburg Pennsylvania 17055. I verify that the statements made in this Claim for Exemption are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904 relating to unworn falsification to authorities. DEBRA ECKSTINE-RALPH, a/k/a DEBRA ECKSTINE LONG Dated: THIS CLAIM TO BE FILED WITH THE OFFICE OF THE SHERIFF OF CUMBERLAND COUNTY: Sheriff of Cumberland County Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013 Telephone-717-240-6390 255678-1 MAJOR EXEMPTIONS UNDER PENNSYLVANIA AND FEDERAL LAW 1. $300.00 statutory exemption 2. Bibles, school books, sewing machines, uniforms and equipment 3. Most wages and unemployment compensation 4. Social security benefits 5. Certain retirement funds and accounts 6. Certain veteran and armed forces benefits 7. Certain insurance proceeds 8. Such other exemptions as may be provided by law. 255678-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION V. NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. SHERIFF'S INSTRUCTIONS FOR SERVICE TO THE SHERIFF: 1. Debra Eckstine-Ralph a/k/a Debra Eckstine Long - please serve Debra Eckstine- Ralph, with the documents (a), (b), (c) and (d), identified below, at the following address: Debra Eckstine-Ralph 11-17 Railroad Avenue Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 (a) Notice of Sheriff Sale of Real Property pursuant to Pennsylvania Rule of Civil Procedure 3129.2; (b) Affidavit Pursuant to Rule 3129.1; (c) Praecipe for Writ of Execution; and (d) Writ of Execution. 255678-1 2. The Subject Property - The Property which is the subject of this Mortgage Foreclosure Action is located at: 11-17 Railroad Avenue Mechanicsburg Boro, County of Cumberland, Commonwealth of Pennsylvania Mechanicsburg, PA 17055 Parcel No. 19-23-0565-019 3. Post Notice of Sale - Please post the Notice of Sheriff Sale of Real Property pursuant to Pennsylvania Rule of Civil Procedure 3129.2 at the property. WEIR & P BY: Daniel D. Haggerty, Esquire Dated: March 17, 2006 Attorney for Plaintiff 255678-1 WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff NOTICE TO DEFENDANTS SOVEREIGN BANK Plaintiff, CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION V. SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants NO. 05-6021 NOTICE OF SHERIFF'S SALE OF REAL PROPERTY PURSUANT TO PENNSYLVANIA RULE OF CIVIL PROCEDURE 3129.1 and 3129.2 TAKE NOTICE: That the Sheriff s Sale of real property (real estate) will be held on September 6, 2006 at 1 Courthouse Square, Carlisle, Pennsylvania 17013, at 10:00 A.M., prevailing local time. The property to be sold is delineated in detail in a legal description mainly consisting of a statement of the measured boundaries of the property, together with a brief mention of the buildings and any other major improvements erected on the land. (SEE DESCRIPTION ATTACHED) The location of your property to be sold is: 11-17 Railroad Avenue Mechanicsburg Boro County of Cumberland Commonwealth of Pennsylvania Mechanicsburg Pennsylvania 17055 Parcel No. 19-23-0565-019 As more fully described in the attached Property Description. The judgment under or pursuant to which your property is being sold is docketed to: Sovereign Bank The name of the owner or reputed owner of this property is: Debra Eckstine-Ralph a/k/a Debra Eckstine Long A schedule of distribution, being a list of the persons and or governmental or corporate entities or agencies being entitled to receive part of the proceeds of the sale received and to be disbursed by the Sheriff (for example, to banks that hold mortgages and Municipalities that are owed taxes), will be filed by the Sheriff within thirty (30) days after the sale and distribution of the proceeds of sale in accordance with this schedule will, in fact, be made unless someone objects by filing exceptions to it within (10) days of the date it is filed. Information about the schedule of distribution may be obtained from the Sheriff of the Court of Common Pleas of Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013. THIS PAPER IS A NOTICE OF THE TIME AND PLACE OF THE SALE OF YOUR PROPERTY. It has been issued because there is a judgment against you. It may cause your property to be held to be sold or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET FREE LEGAL ADVICE: Cumberland County Bar Association Cumberland County Lawyer Referral Services 32 South Bedford Street Carlisle, PA 17013 (717) 249-3166 or (800) 990-9108 THE LEGAL RIGHTS YOU MAY HAVE ARE: 1. You may file a petition with the Court of Common Pleas of Cumberland County to open the judgment if you have a meritorious defense against the person or company that has entered judgment against you. You may also file a petition with the same Court if you are aware of a legal defect in the obligation or procedure used against you. 2. After the Sheriff's Sale you may file a petition with the Court of Common Pleas of Cumberland County to set aside the sale for a grossly inadequate price or for other proper cause. This petition must be filed before the Sheriff's Deed is delivered. 225777-2 A petition or petitioners raising the legal issues or rights mentioned in the preceding paragraphs must be presented to the Court of Common Pleas of Cumberland County at one of the Court's regularly schedule business court sessions. The petition must be served on the attorney for the Creditor at least two (2) business days before presentation to the Court and a proposed order or rule must be attached to the petition. If a specific return date is desired, such date must be obtained from the Court Administrator's Office, Cumberland County, 1 Courthouse Square, Carlisle, Pennsylvania 17013, before presentation of the petition to the Court. WEIR & PARTNE LLP By: DANIEL D. HAGGERTY, ESQ. The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorneys for Plaintiff Dated: March 17, 2006 225777-2 LEGAL DESCRIPTION 11-17 Railroad Avenue Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 19-23-0565-019 ALL that certain tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg, in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BEGINNING at a point, said point being at the intersection of Railroad Avenue and Strawberry Alley, thence along the eastern right-of-way line of Railroad Avenue, South seventeen (17) degrees thirty (30) minutes zero (00) seconds East, a distance of eighty-four and thirty-five one-hundredths (84.35) feet to a point; thence along lands now or formerly of Harold R. Stone, South seventy-two (72) degrees six (06) minutes sixteen (16) seconds West, a distance of ninety-three and fifty-one one-hundredths (93.51) feet to a point; thence along lands now or formerly of Thomas C. Wetzel, North seventeen (17) degrees forty-five (45) minutes forty-four (44) seconds West, a distance of eighty-four and eighty hundredths (84.80) feet to a point; thence along the southern right-of-way line of Strawberry Alley, North seventy-two (72) degrees twenty-two (22) minutes forty-seven (47) minutes East, a distance of ninety-three and eighty- nine one-hundredths (93.89) feet to the place of BEGINNING. CONTAINING 7,925 square feet. BEING 11-13-15 Railroad Avenue, Mechanicsburg, Cumberland County, Pennsylvania. IT BEING the same tract of land which the Mechanicsburg Club, Inc., a non-profit corporation, by deed dated June 1, 1989 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 33-Z, page 358, granted and conveyed unto Debra Eckstine Long, Mortagor herein. WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK V. NOTICE TO LIEN HOLDERS CUMBERLAND COUNTY COURT OF COMMON PLEAS Plaintiff, CIVIL ACTION NO. 05-6021 SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants NOTICE PURSUANT TO PA R.C.P. 3129.1 and 3129.2 Notice is hereby given to the following parties who hold one or more mortgage, judgment or tax liens against the real estate of Debra Eckstine-Ralph, a/k/a Debra Eckstine Long. Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 United Water Pennsylvania, Inc. Mechanicsburg Qperations Legal Department 2411 East Park Circle Harrisburg, PA 17111 Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 Laura L. Davis 671 Ship]2ensburg Road Newville, PA 17241 William L. Davis 671 ShippensburgRoad Newville. PA 17241 Rodney L. Raper 201 Madara Drive Hanover, PA 17331 You are hereby notified that on Wednesday, September 6, 2006, at 10:00 A.M., prevailing time, by virtue of a Writ of Execution issued out of the Court of Common Pleas of Cumberland County, Pennsylvania, on the judgment of Sovereign Bank vs. Salon Trends, Inc., et al., Docket No. 05-6021, the Sheriff of Cumberland County, Pennsylvania will expose at Public Sale in the Sheriff's Office in the Court House, real estate of Debra Eckstine-Ralph known and numbered as Parcel No. 19-23-0565-019, located at 11-17 Railroad Avenue Mechanicsburg, Boro Township, Mechanicsburg, Pennsylvania 17055, Cumberland County, Pennsylvania. A description of said real estate is hereto attached. A schedule of distribution will be filed by the Sheriff on a date specified by the Sheriff not later than thirty (30) days after the sale. Distribution will be made in accordance with the schedule unless exceptions are filed thereto within ten (10) days after the filing of the schedule. 225777-2 You are further notified that the lien you hold against said real estate will be divested by the sale and that you have an opportunity to protect your interest, if any, by being notified of said Sheriff's Sale. WEIR S LLP Dated: March 17, 2006 By: DANIE QD-t&-W-ERTY, E QUIRE Attorney for Plaintiff, Sovereign Bank 225777-2 LEGAL DESCRIPTION 11-17 Railroad Avenue Mechanicsburg Boro Township Mechanicsburg, PA 17055 Parcel No. 19-23-0565-019 ALL that certain tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg, in the County of Cumberland and Commonwealth of Pennsylvania, more particularly described as follows: BEGINNING at a point, said point being at the intersection of Railroad Avenue and Strawberry Alley, thence along the eastern right-of-way line of Railroad Avenue, South seventeen (17) degrees thirty (30) minutes zero (00) seconds East, a distance of eighty-four and thirty-five one-hundredths (84.35) feet to a point; thence along lands now or formerly of Harold R. Stone, South seventy-two (72) degrees six (06) minutes sixteen (16) seconds West, a distance of ninety-three and fifty-one one-hundredths (93.51) feet to a point; thence along lands now or formerly of Thomas C. Wetzel, North seventeen (17) degrees forty-five (45) minutes forty-four (44) seconds West, a distance of eighty-four and eighty hundredths (84.80) feet to a point; thence along the southern right-of-way line of Strawberry Alley, North seventy-two (72) degrees twenty-two (22) minutes forty-seven (47) minutes East, a distance of ninety-three and eighty- nine one-hundredths (93.89) feet to the place of BEGINNING. CONTAINING 7,925 square feet. BEING 11-13-15 Railroad Avenue, Mechanicsburg, Cumberland County, Pennsylvania. IT BEING the same tract of land which the Mechanicsburg Club, Inc., a non-profit corporation, by deed dated June 1, 1989 and recorded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 33-Z, page 358, granted and conveyed unto Debra Eckstine Long, Mortagor herein. WEIR & PARTNERS LLP By: Daniel D. Haggerty, Esquire Attorney I.D. No. 77894 The Widener Building, Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff SOVEREIGN BANK : Plaintiff, V. SALON TRENDS, INC. LAURA L. DAVIS WILLIAM L. DAVIS DEBRA ECKSTINE-RALPH RODNEY L. RAGER Defendants. CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05-6021 AFFIDAVIT PURSUANT TO RULE 3129.1 Sovereign Bank , plaintiff in the above action, sets forth as of the date the Praecipe for the Writ of Execution filed the following information concerning the real property located at 1. Name and Address of Owner or Reputed Owner: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph, a/k/a Debra Eckstine-Ralph Debra Eckstine Long 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 225777-2 2. Name and Address of Defendant in the Judgment: Name Address (if address cannot be reasonably Ascertained, please so indicate Debra Eckstine-Ralph Debra Eckstine-Ralph 107 E. Main Street Mechanicsburg, PA 17055 or alternatively at Debra Eckstine-Ralph 555 Harvest Lane Mechanicsburg, PA 17055 Salon Trends, Inc. 671 Shippensbur Road Newville, PA 17241 Laura L. Davis 671 Shippensburg Road Newville, PA 17241 William L. Davis 671 Shippensburg Road Newville, PA 17241 RodneL. Ram 201 Madara Drive Hanover, PA 17331 3. Name and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 4. Name and address of the last recorded holder of every mortgage of Record: Name Address (if address cannot be reasonably Ascertained, please so indicate Sovereign Bank 601 Penn Street Reading, PA 19601 225777-2 5. Name and address of every other person who has any record lien on their property: Name Address (if address cannot be reasonably Ascertained lease so indicate 6. Name and address of every other person who has any record interest In the property and whose interest may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate 7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Address (if address cannot be reasonably Ascertained, please so indicate Borough of Mechanicsburg 36 W. Allen Street Mechanicsburg, PA 17055 Commonwealth of Pennsylvania PA Department of Revenue Strawberry Square Fourth and Walnut Sts Lobby Harrisburg, PA 17128-0101 Cumberland County Tax Assessment 1 Courthouse Square Carlisle, PA 17013 Internal Revenue Service 228 Walnut Street Harrisburg, PA 17108 Cumberland County Tax Claim Bureau 1 Courthouse Square Carlisle, PA 17013 Mechanicsburg Boro Sewer Authority 36 W. Allen Street Mechanicsburg, PA 17055 225777-2 United Water Pennsylvania, Inc. Mechanicsburg Qperations Legal Department 2411 East Park Circle Harrisburg, PA 17111 PPL Electric Company Legal Department Two North Ninth Street Allentown, PA 18101 I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 PA C.S. Sec. 4904 relating to unsworn falsification to authorities. WEIR PAR L Dated: March 17, 2006 By: DANIEL D. HA T SQUIRE The Widener Building - Suite 500 1339 Chestnut Street Philadelphia, PA 19107 (215) 665-8181 Attorney for Plaintiff 225777-2 b O :Z d 8Z UVW HOZ jJN3HS 3111 30 3Ji330 WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) N005-6021 Civil COUNTY OF CUMBERLAND) CIVIL ACTION - LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due Sovereign Bank Plaintiff (s) From Debra Eckstine-Ralph (1) You are directed to levy upon the property of the defendant (s)and to sell see legal description . (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due$ 494,916.50 Interest from 11/14/05 to 3/17/06 Atty's Comm % Atty Paid $ 159.45 Plaintiff Paid Date: March 22, 2006 (Seal) L.L.$ 0.50 $16,234.77 Plus interest from 3/17/06 at per diem rate of $131.99 Due Prothy $1.00 County Other Costs Pr honot By: Deputy REQUESTING PARTY: Name Daniel D. Haggerty, Esquire Address: The Widener Building Suite 500, 1339 Chestnut Street Philadelphia, Pa. 19107 Attorney for: Plaintiff Telephone: (215)665-8181 Supreme Court ID No. 77894 Real Estate Sale # 17 On May 16, 2006 the Sheriff levied upon the defendant's interest in the real property situated in Borough of Mechanicsburg, Cumberland County, PA Known and numbered as 11-17 Railroad Ave., Mechanicsburg, more fully described on Exhibit "A" filed with this writ and by this reference incorporated herein. Date: May 16, 2006 By: C Real Estate Sergeant 80 -Z d 8Z dVW 9002 a ?J31 3HSt3KlA 33J4() SCHEDULE OF DISTRIBUTION SALE NO. 17 Date Filed: October 06, 2006 Writ No. 2005-6021 Civil Term Sovereign Bank VS Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine-Ralph and Rodney L. Rager Sale Date: Buyer: Bid Price: Real Debt: Interest: Attorney C September 06, 2006 Michael Eckert $211,000.00 $494,916.50 39,069.04 osts: 159.45 Total: $534,144.99 DISTRIBUTION: Receipts: Cash on account (04/28/2006): $ 1,500.00 Cash on account (09/06/2006): 21,100.00 Cash on account (09/22/2006): 204,339.68 Total Receipts: $226,939.68 REAL ESTATE SALE NO. 17 Writ No. 2005-6021 Civil Sovereign Bank VS. Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine-Ralph and Rodney L. Rager Atty.: Daniel Haggerty LEGAL DESCRIPTION 11-17 Railroad Avenue, Mechan- icsburg Boro Township, Mechanics- 11-17 Railroad Avenue, Mechan- icsburg Boro Township, Mechanics- burg, PA 17055, Parcel No. 19-23- 0565-019. ALL that certain tract or parcel of land and premises, situate, lying and being in the Borough of Mechanicsburg, in the County of Cumberland and Commonwealth of Pennsylvania, more particularly de- scribed as follows: BEGINNING at a point, said point being at the intersection of Railroad Avenue and Strawberry Alley, thence along the eastern right-of-way line of Railroad Avenue, South seventeen (17) degrees thirty (30) minutes zero (00) seconds East, a distance of eighty-four and thirty-five one-hun- dredths (84.35) feet to a point; thence along lands now or formerly of Harold R. Stone, South seventy- two (72) degrees six (06) minutes sixteen (16) seconds West, a dis- tance of ninety-three and fifty-one one-hundredths (93.51) feet to a point; thence along lands now or formerly of Thomas C. Wetzel, North seventeen (17) degrees forty-five (45) minutes forty-four (44) seconds West, a distance of eighty-four and eighty hundredths (84.80) feet to a point; thence along the southern right-of-way line of Strawberry Al- ley, North seventy-two (72) degrees twenty-two (22) minutes forty-seven (47) minutes East, a distance of ninety-three and eighty-nine one- hundredths (93.89) feet to the place of BEGINNING. CONTAINING 7,925 square feet. BEING 11-13-15 Railroad Av- enue, Mechanicsburg, Cumberland County, Pennsylvania. IT BEING the same tract of land which the Mechanicsburg Club, Inc., a non-profit corporation, by deed dated June 1, 1989 and re- corded in the Office of the Recorder of Deeds in and for Cumberland County, Pennsylvania in Record Book 33-Z, page 358, granted and conveyed unto Debra Eckstine Long, Mortagor herein. ? Y THE PATRIOT NEWS THE SUNDAY PATRIOT NEWS Proof of Publication Under Act No. 587, Approved May 16, 1929 Commonwealth of Pennsylvania, County of Dauphin} ss Joseph A. Dennison, being duly sworn according to law, deposes and says: That he is the Assistant Controller of The Patriot News Co., a corporation organized and existing under the laws of the Commonwealth of Pennsylvania, with its principal office and place of business at 812 to 818 Market Street, in the City of Harrisburg, County of Dauphin, State of Pennsylvania, owner and publisher of The Patriot- News and The Sunday Patriot-News newspapers of general circulation, printed and published at 812 to 818 Market Street, in the City, County and State aforesaid; that The Patriot-News and The Sunday Patriot-News were established March 4th, 1854, and September 18th, 1949, respectively, and all have been continuously published ever since; That the printed notice or publication which is securely attached hereto is exactly as printed and published in their regular daily and/or Sunday/ Metro editions which appeared in the 19th and 26th day(s) of July and the 2nd day(s) of August 2006. That neither he nor said Company is interested in the subject matter of said printed notice or advertising, and that all of the allegations of this statement as to the time, place and character of publication are true; and That he has personal knowledge of the facts aforesaid and is duly authorized and empowered to verify this statement on behalf of The Patriot-News Co. aforesaid by virtue and pursuant to a resolution unanimously passed and adopted severally by the stockholders and board of directors of the said Company and subsequently duly recorded in the office for the Recording of Deeds in and for said County of Dauphin in Miscellaneous Book "M", Volume 14, Page 317. PUBLICATION ..................... ?.. .. ..... ........................... COPY Sworn to and sub ri d of a me this 16th day of ?AL44bF PENNSYLVANIA SALE # 17 Notarial Seal Terry L. (suss 1, Notary Public City Of bury, Dauphin County My ion Expires June 6.2010 M nnsylvania As oatlon of Notaries NOTARY PUBLIC CUMBERLAND COUNTY SHERIFF'S OFFICE CUMBERLAND COUNTY COURTHOUSE CARLISLE, PA. 17013 ? ? w ?wrl ?ef:?d of -• T*,ra"ws,ww ww *ww!j t, a of ti1Miilfi? pl4.51?_iW1c a a- L?da (45) ¦m fea C-1 6W ID 69 MOM film ??II.I3=13 1d?Skaad aid ft 09-Wom- W.' Raodd Seek 3341 *d h ?aa" Commonwealth of Pennsylvania ) ss. County of Gum- oc4ka r c ) On this, the 27'h day of September, 2006, before me, the undersigned officer, personally appeared Michael J. Eckert, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed same for the purposes therein contained. IN WITNESS WHEREOF, I hereunto set my hand and official seal. L:%k1VA1r- COMMALTH OF PENNSYLVANIA Notarial Seal yoa L Baugl M, NOWY Public *SWrg B=, C umberlatrd Courtly CWff& W Expires Jan. 8, 2008 Member, Pennsylvania Association Of Notaries Notary 11C .1 ASSIGNMENT I, Michael J. Eckert, 765 Offs Bridge Road, Mechanicsburg, Pennsylvania 170561 have purchased 11-17 Railroad Avenue, Mechanicsburg, Pennsylvania at a Cumberland County Sheriff's Sale. I hereby assign all my right, title and interest in said real estate through the sale to Debra Eckstine-Ralph. Dated: September 27, 2006 Sovereign Bank Court of Common Pleas for Cumberland County, Pennsylvania Plaintiff, Case No. 05-6021 Docket No. VS. Salon Trends, Inc., Laura L. Davis, William L. Davis, Debra Eckstine- Ralph & Rody L. Rager Defendant(s) Assignment of Confession of Judgment FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the Plaintiff, the Sovereign Bank, whose address is 75 State St., Boston, MA 02109 (hereinafter referred to as the "Assignor"), hereby transfers and assigns to States Resources Corp., whose address is 4848 S. 131 St., Omaha, NE 68137 (hereinafter referred to as the "Assignee"), the Confession of Judgment, filed November 22, 2005, in the amount of $494,916.50, in the above entitled and all right, title, interest, claim and demand therein. The Assignor authorizes the Assignee to sue out of the execution and all other legal processes necessary, the same. to be done in the Assignee's name only and at the Assignee's own costs. This Assignment of Confession of Judgment from the Assignor to the Assignee is made without recourse, warranty or representation to the Assignee. DATED this 19th day of September, 2007. Sovereign Bank By: c Steven J. rris, Senior Vice Pre dent STATE OF MASSACHUSETTS : SS C UNTY OF SUFFOLK (?A this J Nay of September, 2007, before me, a Notary Public, the undersigned officer, personally appeared Steven J. Morris, who acknowledged himself to be a Senior Vice President of Sovereign Bank, the institution described in the foregoing instrument, and that he as such Senior Vice President, being authorized to do so, executed the foregoing instrument for the purpose therein contained by signing his name thereto as Senior Vice President of Sover . Bank. WITNESS my hand and Notarial Seal, the day and year first aforesaid. /, 15 -?: ?v?? //2 Pat Reagan, otary P lic Salon Trends - 53371340-84 My Commission Expires: 1 - -2009 lltq o ? u rF N t 'l v RECORD & RETURN TO: DONNA BUTLER STATES RESOURCES CORP 4848 S 131 ST OMAHA NE 68137 Prepared by: States Resources Corp. 4848 S. 131 St. Omaha, NE 68137 SOVEREIGN BANK 100 North 3rd Street Easton, PA 18042 Plaintiff, V. SALON TRENDS, INC. 671 Shippensburg Rd. Newville, PA 17241 LAURA L. DAVIS 671 Shippensburg Rd. Newville, PA 17241 WILLIAM L. DAVIS 671 Shippensburg Rd. Newville, PA 17241 DEBRA ECKSTINE-RALPH 2314 Bumblebee Hollow Rd. Mechanicsburg, PA 17055 RODNEY L. RAGER 30 Magnolia Lane Hanover, PA 17331 F)t?aw I Hr" CUMBERLAND COUNTY COURT OF COMMON PLEAS CIVIL ACTION NO. 05-6021 Defendants. PARTIAL SATISFACTION OF JUDGMENT (RELEASE OF RODNEY L. RAGER) COMES NOW States Resources Corp., Assignee of Sovereign Bank, and acknowledges satisfaction of the judgment, as it relates to Rodney L. Rager, which was obtained in the foregoing matter on November 16, 2005. It is specifically the intent of States Resources Corp. to retain it's judgment against all the remaining defendants, EXCEPT that against Rodney L. Rager. DATED this 7th day of August, 2008. STATES RESOURCES CORP. By /,L -XZJ. oug enn,President STATE OF NEBRASKA ) ss. COUNTY OF DOUGLAS ) Subscribed and sworn to before me this 7th day of August, 2008, by Doug Glenn, President of States Resources Corp., Plaintiff in the foregoing matter. "yCanMe&WIKM Donna Butler, Notary Public WEIR & PARTNERS 112. By: Daniel D. Hagerty, Esquirc Attorney T,D. No. 77894 The Widener Building, Suite 500 1339 (hut Street Pbilsdelphia, PA 19107 {215) 663-8181 Attorney for Plaintiff SOVEREIOx BANK 100 North 3rd Stimd Eaton, PA 18042 Plsint0% V. SATAN TMDS, INC. 671 Sluppenaburg Road , Newville, PA 17241 LAURA L. DAVIS 671 Shippanftg Road Newvi]lo, PA 17241 WIL,hIAIVI 1.. DAVIS 671 Shipponsburg Road Nowvillc, PA 17241 DEBRA ECKSTR4&RAYPH 2314 Bumblebee Hollow Road Mcclmcnicsburg, PA 17055 RODNEY L. RAC#BR , 30 Magawlia Lana . Hanover, PA 17331 Defendants. CUMBERLAND COUNTY COURT OF COMMON PLBAS CIVIL ACTION Pursuant to the w4hority oon Wixwd in the Warrat?ts of Attorney, copies of which X e sttached to the Complaint in Confession ofJudgment filed in this action as Exhibit's "A", `S "Cl, "D" and 218138.1 I appear for the Defendants and IDCMf= judgment in favor of tic PWn6ff and against the Defendants, jointly and severally, as follows: LOAN NO.1: (orlgtmd loan amount 5385,000, dated July 3, 2001) Principal $ 359,943.13 InUmst tbru 11/14/05 $ 41,382.48 Late Fees $ - 4,852.39 Attorneys' Fees (10%p) S 40-617-80 Sub-Total S 446,795680* 'Plus West from November 14, 2005 at the per diem rate of $119.98104. LgM N0.2., (origix loan amownt $50,000.00, dated July 3, 2001) Principal $ 43,23329 bier eat thru 11114105 $ 512.80 Late Fees S 0.00 Attorneys' Fees (10°/a) 4,374.61 Sub-Total $ 48,120.70* Vlas intevest from November 14, 2005 at the per diem rate of S 12.00925. WHEREFORE, Plaintiff dmands judgment in its favor and against ft Def®dants, both jointly and aevmslly, and assess damages in the amount of $494,916.50, plus Interest from. November 14, 2005, at the per diem rate of $131.99 and cost of suit. WEIR LLP Da;ARINE" By: Dated: November 16, 2005 248138.1 C f C:~StatesResources~SabnTrend\\EntryofAppearancePraecipe.doc LUNDY, FLITTER, BELDECOS &BERGER, P.C. By: PHILLIP D. BERGER, ESQUIRE Identification Number: 58942 450 N. Narberth Avenue Narberth, PA 19072-0278 (610) 668-0770 STATES RESOURCES, CORP., successor by assignment to SOVEREIGN BANK, Plaintiff, v. SALON TRENDS, INC., LAURA L. DAVIS, WILLIAM L. DAVIS, DEBRA ECKSTIlVE- RALPH and RODY L. RAGER Defendants ATTORNEYS FOR PLAINTIFF COURT OF COMMON PLEAS CUMBERLAND COUNTY NO.OS-6021 PRAECIPE TO ENTER OUR APPEARANCE TO THE PROTHONOTARY: Please enter our appearance on behalf of the Plaintiff, States Resources Corp., successor by assignment to Sovereign Bank, in this matter. LLTNDY, FLITTER, BELDECOS &BERGER, P.C. By: PHILLIP D. BERGER, ESQUIRE Dated: ~~~~ ~~~~ a 9 ~ ~ ~"'~ l "'~ a t'r7 ~ fTl ° ~' C"7 -^i ~-z'1 ""' w..~ ; ' ~:C7 ---i T7 rn £d1~ ~ ~~ ~ ~ C1't ~ ~ °-i p ~ "rt ~. .~ ~ n ~ ---1 N ~``~ .°~: SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson FILED-OFFICE Sheriff ?r THE PROTHONOTARY Jody S Smith Chief Deputy 2010 DEC 10 PM 1- 33 Richard W Stewart CUMBERLAND COU14TY Solicitor PENNSYL?'ANIA States Resources Corporation Case Number vs. 2005-6021 Laura L Davis (et al.) SHERIFF'S RETURN OF SERVICE 12/08/2010 Ronny R. Anderson, Sheriff, who being duly sworn according to law, states that he made a diligent search and inquiry for the within named defendant to wit: Laura L. Davis, but was unable to locate her in his bailiwick. He therefore returns the within Writ of Revival as not found as to the defendant Laura L. Davis. Request for service at 138 Westgate Drive, Mount Holly Springs, Pennsylvania 17065 the defendant was not found. The Boiling Springs Postmaster has confirmed Laura L. Davis is not known at 106 2nd Street, Boiling Springs, Pennsylvania 17007. 12/08/2010 Ronny R. Anderson, Sheriff, who being duly sworn according to law, states that he made a diligent search and inquiry for the within named defendant to wit: Salon Trends, but was unable to locate them in his bailiwick. He therefore returns the within Writ of Revival as not found as to the defendant Salon Trends. Request for service at 138 Westgate Drive, Mount Holly Springs, Pennsylvania 17065 the defendant was not found. The Boiling Springs Postmaster has confirmed Salon Trends is not known at 106 2nd Street, Boiling Springs, Pennsylvania 17007. SHERIFF COST: $65.70 December 08, 2010 SO ANSWERS, RON , R ANDERSON, SHERIFF LUNDY, FLITTER, BELDECOS & BERGER, P.C By: PHILLIP D. BERGER, ESQUIRE Identification Number: 58942 ATTORNEYS FOR PLAINTIFF 450 N. Narberth Avenue Narberth, PA 19072-0278 (610) 668-0770 STATES RESOURCES CORP., successor by assignment to SOVEREIGN BANK, Plaintiff, COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. 05-6021 V. SALON TRENDS, INC., LAURA L. DAVIS, WILLIAM L. DAVIS, DEBRA ECKSTINE- RALPH and RODY L. RAGER Defendants. WRIT OF REVIVAL TO: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 and Laura L. Davis 671 Shippensburg Road Newville, PA 17241 (1) You are notified that the plaintiff has commenced a proceeding to revive and continue the lien of the judgment entered in favor of States Resources Corp., successor by assignment to Sovereign Bank, at Docket Number 05-6021. (2) The plaintiff claims that the amount remaining due and unpaid on the entered judgment only from Salon Trends, Inc. and Laura L. Davis, jointly and severally, is $174,210.22 plus interest which continues to accrue from October 14, 2010. (3) You are required within twenty (20) days after service of this writ to file an answer or otherwise plead to this writ. If you fail to do so, judgment of revival will be entered. Date: Prothonotary TRt1l AMP Y FRW *E-CORD In Ti14l Y-9-m-W W-w-d"t Mrarunto set my hand Mid M1i aM At said CarUsle, Pa. TMs. L.day at 201_ Prothonotary a 7sr?r EiEE k3 Ma?ot iiil ! L' LUNDY, FLITTER, BELDECOS & BERGER, P.C. By: PHILLIP D. BERGER, ESQUIRE Identification Number: 58942 450 N. Narberth Avenue Narberth, PA 19072-0278 (610) 668-0770 STATES RESOURCES CORP., successor by assignment to SOVEREIGN BALK, Plaintiff, V. SALON TRENDS, INC., LAURA L. DAVIS, WILLIAM L. DAVIS, DEBRA ECKSTINE- RALPH and RODY L. RAGER Defendants. WRIT OF REVIVAL TO: Salon Trends, Inc. 671 Shippensburg Road Newville, PA 17241 and Laura L. Davis 671 Shippensburg Road Newville, PA 17241 NO. 05-6021 (1) You are notified that the plaintiff has commenced a proceeding to revive and continue the lien of the judgment entered in favor of States Resources Corp., successor by assignment to Sovereign Bank, at Docket Number 05-6021. (2) The plaintiff claims that the amount remaining due and unpaid on the entered judgment only from Salon Trends; Inc. and Laura L. Davis, jointly and severally, is $174,210.22 plus interest which continues to accrue from October 14, 2010. (3) You are required within twenty (20) days after service of this writ to file an answer or otherwise plead to this writ. If you fail to do so, judgment of revival will be entered. Now ? 5, 45/0.15 PO RTN A.00 DECD 0 ATTORNEYS FOR PLAINTIFF 10 - 667*' (: 'I'v; t -Term COURT OF COMMON PLEAS CUMBERLAND COUNTY TRUE COPY FROM RECORD In Tos m Wwim I two wo sit my hind and the pad of OW-COW at Cam. Pa. ?T1Ms?. d20L_ I?a.IC.. A? Pnwwnota?r AIO*N kt bwt Vm W olnu snarl t io iw Vnomd;eoT rM - m , t+o %1?? r...?. off ?h;)stctucltii'1? LUNDY, FLITTER, BELDECOS & BERGER, P.C. By: PHILLIP D. BERGER, ESQUIRE (#58942) JESSICA M. GULASH, ESQUIRE (#208463) 450 N. Narberth Avenue Narberth, PA 19072-0278 (610) 668.0770 --------------------------------- STATES RESOURCES CORP., successor by assignment to SOVEREIGN BANK, Plaintiff, V. SALON TRENDS, INC.; LAURA L. DAVIS; WILLIAM L. DAVIS; DEBRA ECKSTINE- RALPH; and RODY L. RAGER Defendants. ---------------------------------------------- ATTORNEYS FOR PLAINTIFF COURT OF COMMON PLEAS CUMBERLAND COUNTY NO. 05-6021 PRAECIPE TO REINSTATE WRIT OF REVIVAL TO THE PROTHONOTARY: rri xs -? 7m c) = ° r-, Kindly reinstate the Writ of Revival filed by Plaintiff on October 19, 2010. LUNDY, FLITTER, BELDECOS & BERGER, P.C. By: PHILLIP D. BERGER, ESQUIRE Attorneys for Plaintiff Dated: a (,"ASIooP°1aAj Ckit 5051`1 2 4 J5$ y$/