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HomeMy WebLinkAbout02-2085PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA :NO. ~),,~ ~9~6'-" ~ : : CIVIL ACTION - LAW II. Note B: Obligor/Obligation Nos.: 30934754-601144802 ($35,000 Loan) a. Principal $ 22,433.97 b. Interest to April 16, 2002 $ 833.69 c. Mortgage Satisfaction Fees $ 14.00 d. Attorneys' commission $ 2,326.76 e. Total due to Plaintiff as of $ 25,608.37 April 16, 2002 Ill. Note C: Obligor/Obligation Nos.: 30934754-601447662 ($26,000 Loan) Tommy Guaranty a. Principal $ 37,695.49 b. Interest to April 16, 2002 $ 326.44 c. Mortgage Satisfaction Fees $ 14.00 d. Attorneys' commission $ 3,802.19 e. Total due to Plaintiff as of $ 41,838.12 April 16, 2002 CONFESSION OF JUDGMENT Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against Defendants as follows: I. Note A: Obligor/Obligation Nos.: 30934754-601144676 ($40,000 Loan) Date: a. Principal b. Interest to April 16, 2002 $ 26,000.00 $ 675.82 c. Late Charges $ 118.69 d. Mortgage Satisfaction Fees $ 14.00 Attorneys' commission Total due to Plaintiff as of April 16, 2002 $ 2,667.58 $29,476.09 Grand total due to Plaintiff under the Guaranty as of April 16, 2002 $96,922.58, plus additional interest, and costs from the date of the Complaint. Respectfully submitted, SAImSiS/ Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney For Defendants Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION - LAW NOTICE TO: Tommy L. Bloser and Cynthia L. Bloser Pursuant to Rule 236 of the Supreme Court of Permsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above proceeding and that enclosed herewith is a copy of all the documents filed in support of the said judgment. 1F YOU HAVE ANY QUESTIONS CONCERNING THIS NOTICE, PLEASE CALL: KARL M. LEDEBOHM, ESQUIRE TELEPHONE NUMBER: (717) 761-1881 Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : NO. : : CIVIL ACTION - LAW ENTRY OF APPEARANCE TO THE PROTHONOTARY: Please enter the appearance of the undersigned on behalf of PNC Bank, National Association, Plaintiff in the above captioned matter. Date: Respectfully submitted, SAIDIS, SHUFF, FLOWER & LINDSAY 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION - LAW AFFIDAVIT OF NON-M/LITARY SERVICE TO THE PROTHONOTARY: I do certify, to the best of my knowledge, that the Defendants, Tommy L. Bloser and Cynthia L. Bloser, in the above-captioned action are not presently on active or nonactive military status. Respectfully submitted, SAIDIS, SHUF~FT, FLOWER & LINI~AY Date: [~ ,-- ~.~ C{ - E) ~ By: ~tr~[ M. Eedebo'h~, Esquire /Supreme Court ID #59012 ' 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. CIVIL ACTION - LAW CERTIFICATE OF ADDRESSES I hereby certify that the precise address of Plaintiff, PNC Bank, National Association, is 4242 Carlisle Pike, Camp Hill, Pennsylvania 17011; that the last known address of the Defendants Tommy L. Bloser and Cynthia L. Bloser is 210 Bamstable Road, Carlisle, Pennsylvania 17013. Date: Respectfully submitted, SAIDI~~FLOWER & LINDSAY Supreme Court ID #59012 2109 Market Street Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION : IN THE COURT OF COMMON PLEAS Plaintiff CUMBERLAND COUNTY, PENNSYLVANIA TOMMY L. BLOSER AND CYNTHIA L. BLOSER, Defendants NO. CIVIL ACTION - LAW COMPLAINT FOR CONFESSION OF JUDGMENT UNDER RULE 2951 1. The name and address of the Plaintiff is PNC Bank, National Association, 4242 Carlisle Pike, Camp Hill, Pennsylvania 17011. 2. The names and last known address of the Defendants are Tommy L. Bloser and Cynthia L. Bloser, 210 Bamstable Road, Carlisle, Pennsylvania 17013. 3. Defendants Tommy L. Bloser and Cynthia L Bloser ("Defendants") executed and delivered to Plaintiff a Commercial Guaranty (the "Guaranty"), a tree and correct photostatic reproduction of the original of which is attached hereto as Exhibit "A" and made part hereof. 4. Defendants under the Guaranty, guaranty to Plaintiff the payment of all amounts due to Plaintiff by Bloser Brothers, a Pennsylvania General Partnership ("Debtor") under the following Promissory Notes: (a) Promissory Note dated April 30, 1999 in the original principal amount of Forty Thousand and 00/100 Dollars ($40,000.00) ("Note A"), (b) Promissory Note dated April 30, 1999 in the original principal amount of Thirty Five Thousand and 00/100 Dollars ($35,000.00) ('*Note B") and (c) Promissory Note dated April 19, 2000 in the original principal amount of Twenty Six Thousand and 00/100 Dollars ($26,000.00) ("Note C"). A true and correct photostatic copy of Note A, Note B and Note C are attached hereto as Exhibits "B", "C" and "D" respectively. Note A, Note B and Note C are sometimes referred to herein collectively as (the '*Notes"). 5. Debtors are in default of Debtor's obligations to make payment to Plaintiff as 3_ required in the Notes and Defendants are in default of Defendants' obligations to make payment to Plaintiff under the Guaranty. 6. Judgment is not being entered by confession against a natural person in connection with a consumer credit transaction. 7. There has not been any assignment of the Guaranty. 8. Judgment has not been entered on the Guaranty in any jurisdiction. 9. An itemized computation of the amount due to Plaintiff by Defendants as a result of Defendants' defaults under the Guaranty are as follows: I. Note A: Obligor/Obligation Nos.: 30934754-601144676 ($40,000 Loan) a. Principal $ 37,695.49 b. Interest to April 16, 2002 $ 326.44 c. Mortgage Satisfaction Fees $ 14.00 d. Attomeys' commission $ 3,802.19 e. Total due to Plaintiff as of $ 41,838.12 April 16, 2002 II, Note B: Obligor/Obligation Nos.: 30934754-601144802 ($35,000 Loan) a. Principal $ 22,433.97 b. Interest to April 16, 2002 $ 833.69 c. Mortgage Satisfaction Fees $ 14.00 d. Attorneys' commission $ 2,326.76 e. Total due to Plaintiff as of $ 25,608.37 April 16, 2002 Note C: Obligor/Obligation Nos.: 30934754-601447662 ($26,000 Loan) a. Principal $ 26,000.00 b. Interest to April 16, 2002 $ 675.82 c. Late Charges $ 118.69 d. Mortgage Satisfaction Fees $ 14.00 e. Attomeys' commission $ 2,667.58 f. Total due to Plaintiff as of $29,476.09 April 16, 2002 Grand total due to Plaintiff under the Guaranty as of April 16, 2002 $96,922.58 10. Interest continues to accrue at the default rates provided in the Notes. WHEREFORE, Plaintiff demands judgment against Defendants, Tommy L. Bloser and Cynthia L. Bloser, as authorized by the warrant of attorney contained in the Guaranty for Ninety- Six Thousand Nine Hundred Twenty-Two and 58/100 Dollars ($96,922.58), plus interest fi:om and including the date of this Complaint and judgment entered hereon at the default rates provided in the Notes and costs of suit. Respectfully submitted, SAIDIS, SHU~EF, FLOWER & LINDSAY 2109 M~ket S~eet Crop Hill, PA 17011 (717) 737-3405 A~omey for Pl~ntiff COMMERCIAL GUARAN., References in the shaded area are for Lander's use only and do not limit the applicabllil,/of this document to any p~licolar loan ilem. Botirower: BLOSER BROTHERS (TIN: 251758013) 150 BARNSTABLE ROAD CARLISLE, PA 17013-7420 Guarantor: TOMMY L. BLOSER and CYNTHIA L. BLOSER 210 BARSTABLE ROAD CARLISLE, PA 17013 Lender: PNC BANK, NATIONAL ASSOCIATION 4242 CARLISLE PIKE CAMP HIII, PA 17001-4874 AMOUNT OF GUARANTY. The amount of this Guaranty te Unlimited. CONTINUING UNLIMITED GUARANTY. For ~ and valuable conalderatlon, TOMMY L. BLOSER and CYNTHIA L. 8LOSER ('Guoranto al~atutcty and uncondltiomdly guarantee ~ promise to pay, jctntly and severally, to PNC BANK, NATIONAL ASSOCIATION ("Lender") or order, In legal tender of the United States of America, the ledebtednean (se that term Is defined below) of 9LOSER BROTHERS ("8on'owe to Lander mt the fermi and conditions set forlh In this Guaranty. Under this Guaranty, the Iledllby of Guarantor te unlimited an~l t obligations of Guarantor ars continuing. DEFINITIONS. The following words shall have the following meanings when used in this Guaranty:. Borrower. The word "~orrowor* means BLOSER t~ROTHERS. Guarantor. The word "Guarantor" means TOMMY L. BLOSER and CYNTHIA L. BLOSER, who are signing this Guaranty jointly and severally. Guaranty. The word "Guaranty' means this Guaranty made by Guarantor for the benefit of Lender dated April 19, 2000. Indebtedness. The w;~-d "lndebtednesa' Is used in its meat comprehensive sense and means and Inoiudss any and all of Borrower's li=blliti~ obligations, debts, and indebtedness to Lender, now existing or heralcaffar incurred or creeted, including, without limitation, all loans, edv~nc~ Interest, cents, debts, overdraft indebtedness, credit card indabtsdness, lease obligations, other obligations, and liabilities of Borrower, or any them, and any present or future Judgments against Borrower, or any of them; and whether any such Indebtedness is voluntarily or Immlunfa~ incurred, due or not due, absdiufa or contingent, liquid.ted or unllquidated, determined or undetermined; whether Borrower may be list icdividuaily or Jointly with others, or prirnsdly or secondarily, or ea guarantor or surely; whether recovery on the Indedtedne,=s may be or m become barred or usenf~te against Borrower for any reason whatsoever, and whether the Indebtedness arisea from transactions which m be vcldabla on account of infancy, Insanity, ultra vires, or cthem4seo Lender. The word '1..andsr" means PNC BANK, NATIONAL ASSOCIATION, its s,__~c_essors and assigns. Related D~..umant~. The words 'l:lateted Documents' mean and Inciude without limitation all promissory notes, credit agreements, Jo agreements, environmental agreements, guaranties, secudly agreements, mortgages, deeds of trust, and all other instruments, agreements a documents, whether now or hereafter ex~ting, executed In connection with the Indobfadrman. NATURE OF GUARANTY. Guarantor's lisbllily under this Guaranty shall be open and continuous for so long es this Guaranty remains in fore Guarantor intends to guarantee at all times the pedormanea and prompt payment when due. whether at metudty or earlier by reason of a~.'eterstion otherwise, of sil Indebtedness. Accordingly, no payments made upon the indebtedness will discharge or diminish the continuing liability of Guaran~ in connection with any remaining portions of the Indebtedness or any of the Indebtedness which subsaquentiy arises or is thereafter incurred contracted. The obligations of Guemntum shell be joint and several. Lender may proceed against any of the Guarantom individually, agaJeat a group of Guarantors, or against a~ the Guaranfam in cna action, without affecting the dght of Lender to proceed against other Guarantors for ~mou; that are covered by this Guaranty. Any inability of Lender to proceed against any Guarantor (whether caused by anflans of a Guarantor or of Landi will not affect Lender's dght to proceed against any or ~1 remaining Guarantors for all or part of the amounts covered by this Guaranty. DURATION OF GUARANTY. This Guaranty will taka affect when received by Lender without the necessity of any acceptance by Lender, or any ncti to Guarantor or to Borrower, and will continue in fulJ fmcs until ~ Indebtedness incun'ed or contrected before receipt by Lender of any notice revocation shall have been fully and tinnily paid and satialted ,=nd all other obligations of Guarantor under thts Guar. nty shall have been pedormed full. If Guarantor elects to revoke this Guaranty, Guarantor may only do so in writing. Guarantor's wntfan notice of revocation must be mailed Lender, by certified mail, at the address of Lender listed edove or such other place es Lender may designate in writing. Written ravecation of ti Guaranty will apply only to advances or new Indebtedness crested attar actual receipt by Lender of Guarantor's wriffan revocation. For this purpc and without limitation, Ihs term "new Indebtedness" does not include Indebtedness which at Ihs time of notice ct revocation is contingent, umiquidetE undetermined or not due and which later becomes absolute, liquidated, determined or due. Notice of revocation shall be effective only as to t particular Guarantor providing the notice, and shall not affect the liability of other guarantors. This Guaranty will continue to bind Guarantor for Indebtedness incurred by Borrower or committed by Lender prior to receipt of Guarantor's written notice of revocation, including shy extenalor renewals, suPstitutions or modifications of the Indedtednsss. All renewals, extensions, substitutions, and modifications of the Indebtedness grant after Guamnic~s revocation, are contemplated under this Guaranty and, specifically will not be considered lo be new Indebtedness. This Guera; sh~t bind the estate of Guarantor u to Indebtedness created both bctore snd after the death or incapacity of Guarantor, regardless of Lander's acti notice of Guarantor's death. Subject to the foregoing, Guarantor's esecutor or administrator or other legal representative may terminate this Guarant~ the cams mannsr in which Guarantor might have terminated it and with the same effect. Release of any other guarantor or tormlrmtion of any oil guaranty of the Indebtedness shall not affect the liability of Guarantor under this Guaranty. A rovoc~,tion received by Lender from any one or m; GU~rsnfu~ shall not affuof the liability of any remaining Guarantors under this Guaranty. It Is anticipated that fluctuatico$ may ogcur In t aggregate amount of Inde~lednnse covered by this Guaranty, and It Is apeclhcalty acknowledged ~ agreed by Guarantor that reductions the amount of Indethm~_~_-_~. even to zero dollars ($0.00), prior to written revocation of this Guaranty by Guarantor obetl not constitute termlnaflan of this Guaranty. This Guaranty is binding upon Guarantor and Guarantor's heirs, succe~,~r_ $ and eaalgns so long eJ any el' t guaranteed thdedtednese remains unpaid and even though the Indethednese guaranteed may from time to time he zero dollern ($0.00). GUARANTOR'S AUTHORIZATION TO LENDER. Gu.ranter euthedzes Lender, either before or after any revocation herect, without notice demand and without !e__~q_ lng Guarantor's liability under this Guaranty, from time to time: (a) prior to revocation ea set forth above, to m~ one or more additional secure~ or unsecured loans to Borrower, to lease equlpmerd or other goods to Borrower, or otherwise to exte additional credit to Bon'owor; (b) to alter, compromise, renew, exlond, accelerate, or othenvlse change one or moro times the time payment or other terms of the Indebtedness or any peri of the Indebtedness, Inctudlng Increases and decreases of the rate of Interest on I Indethednese; extensions mW he repeated and may be for longer than the original loan term; (c) to take and hold secorlty for the paymenl this Guaranty or the Indebtedness, and exchange, enforce, waive, subordinate, tall or decide not to peat'oct, and release any such eacur with or without the substitution of new collateral; (d) to release, sul~$tttute, agree not to sue, or deal with any one or more of Bon'ow~ sureties, endorsura, or other guarantors on any terms or in any manner Lender mW choose; (e) lo determine how, when and what apptica! O4-19-2000 COMMERCIAL GUARANTY loan No (Continued) Page ot' ~,~,,,~,,:.. and ~.;~;~, eball be ,..,~e on the todebtedne*~.; (f) to apply ouob eeourlty and direst the order er maoner of sale there,: including without limitation, arty flonJudlclM sale permitted by the terms of the controlling eeourfty agreement or deed of trust, as Lender In I. discretion may betermfrle; (g) to MI, Irsssfer, assign, er grant parllclpattons In all or arty part of the Indebtedness; and (h) to ee~gn c transfer this Guaronly in whole or Iff pm't. GUARANTOR'S REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants to Landor that (a) fie representations or agroemanL of any kind have boon made to Guarantor which would limit or quality in any way tho terms of this Guaranty;. (b) this Guaranty is oY_~,c_utad Borrower's request and not at tho requast of Landor;, (c) Guarantor has full power, dght and authority to enter into this Guaranty:. (d) tho provisions this Guaranty do not contiM with or result In a · data'dt under any agreement or other fnstiumant binding ups/1 Guar~lltor and do not result in a Victatio of any law. regulation, court deo'~e or erda' applicable to Guarantor;. (o) Guarantor has not and will not, without the prior wriffan consent of Lands soil, tease, assign, ancumbar, hypothouata, transfer, or otde~so dispose of ail or substantially ,=ti of Guarantor's assets, or any Interest thegn; Lender's request, Gumantor will provide to Lander financial and credit information in (0 Ups which curmn~ has been, and a~ futura tinonci~ In~'mation which ~m acceptable to Lander, -,nd all such tinanstal Informatior will be provided to Landor is and will bo true and cermet In all matarisf respects ant fairly present tho tinanclal condition of Gumantor as of the dates the tinanciai information is provided; (g) no matsde] edve~o change has occurred ir Guarantor's tinandal condition sicco the date of the most rece.t tinanclal statements provided to Landor and fie event has occurred which mat materially aclvef~ety affect Guarantor's tinanclal condition; (h) no llltgation, ctefm, invastigation, admintslratlve proceeding or similar acffon (thctudjn.c those for unpaid taxss) against Guarantor is pending or threetaned; (i) Lander has rnsdo no rel:h'eeentation to Guarantor es to the orodftworththees o Be~ower; and (j) Guarantor has asteblished adequate me.ns of obtaining from Borrower on a continuing basis information regeraJng Bon'ovrar'.. ftr~ancial ccflcflflon. Guarantor egraas to keep adaquatay informed from such means of any facts, even~ or c~umstaflces which might in any effect Guaranter'a risks under this Guaranty, and Guarantor further agrees that Lander shall have no obligation to dlscleco to Guarantor any Infon~atiof or documents acquired by Landar in tho course of lis relationehJl~ with Borrower. GUARANTOR'S WAIVERS. Exospt as prohibited by appticebte taw. Guarantor waives any fight to recluire Lander (a) to continue lending money or fo extend cthar credit to Bon'o~, (b) to make any presentment* protect, demand, or notice of any kind, including notice of any nonpayment of the Indebtadnsos or of any nonpayment m~tad to any collateral, or notice of any action or flonecfion on the part of Borrower, Lender, any surety, endorser, or other guarantor in connantion with tho Indebtedness or in connection with tho creation of new or additional loans or obligations; (c) to resort for paymani or to proceed direcffy or at once against any pe~on. Including Borrower or any other guarantor; (d) to proceed directly against or exhaust any ¢otiaierai held by Landor from Bor;~.var, any other guarantor, or any other person; (e) to give nctico of tho terms, time. and place of any public or private sale of pemonai property security haid by Lander from Sorrower or to comply with any other applicable provisions of the Uniform Commercial Code; (f) to pursue any cthar remedy wltfun Lander's power;, or (g) to commit any act or omission of any kind. or at any time, with respect to any melter whatsoever. Guarantor also waivas any and ail rights or detensec arising by mason of (a) any "one action' or "anlt-deflclancy' hw or any other law which may prevent Lander from bfinging any action, Including a c~Jm for deflcloccy, against Guarantor, before or after Lander's commencement or comptation of any foreclosure a~on, either judicially or by exarctso of a power of sale; (b) any election of remedies by Lender whicA dectroys or ot~ adversely affects Guarantor's subrogation rights or Guarantor's rights to prcceed ngainst Borrower for reimbursement, including without #mttation. any loss of fights Guarantor may suitor by reason ct any law timJting, qualltythg, or diecha:,ging tho Indebtednees; (c) any dlsapiltiy or othm' defense of Borrower, of ~nnY cthor guarantor, or of any cthar person, or by reason of the c~_~tion of Borrower's liability from ,*ny osuee whatsoever, other than payment in futi legal tender, of tho Indebtedness; (d) any right to claim discharge of tho Indebtedness on tho basis of unjustified impairment et any ccltaterai for the rndebtsdnsss; (e) any statute ct limitations, if at any time any action or suit brought by Lander against Guarantor is commenced there is outstanding Indebtedness of Borrower to Lander which is not barred by any applicable statute of limitations; or (0 any datanses given to guarantors at taw or in equity other than actual payment and pa~tormsnco of the Indebtedness. If payment is made by Borrower, whether v~uctadty or cthe~vise, or by any third party, on tho indebtedness and thameffer Lender is forced to remit the amount of that payment to Borrower's trustee in bankruptcy or to any similar po~on under any federal or state bank;uptny ~aw or law for the raltsf of debtors, tho Indebtedness shall ho considered unpaid for tho pur~o'sa of enforcement of this Guaranty. Guarantor further waives and egress not to asso~ or c~aim at any time any deducffons to the amount guaranteed under this Guaranty ~ any c~m of setoff, countemlaim, counter demand, recoupmant or similar right, whether such claim, demand or fight may bo asserted by the Borrower, tho Guarantor, or both. GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees that Ssch of tho waivers sat forth above is made with Guarantor's full know~edgo et ti3 significance end consequencec and that, under the circumstances, tho waivers are reasonable and not contra~' to public policy or raw. If any such waiver is doterntifled to bo contrary to any applicable law or public policy, such waiver shall bo afl. five only to tho extent permJfteff by law or public penny. LENDER'S RIGHT OF SETOFF. In addition to ail liens upon and fights of satoff against the moneys, secu,-ities or other property of Guarantor given to Lender by taw, Lender shall have, with respect to Guarantor's obligations to Lender under this Guaranty and to the extent permihed by law, a oontractuai security Jntsrost in end a right of satoti against, and Guarantor hereby assigns, conveys, delivers, pledges, and transfms to Lender ail of Guarantor's right, title and interest in and to. ail deposits, moneys, sacurities and other properly of Guarantor now or hereafter in tho possession of or on deposit with Lender, whether held in a general or special account or deposit, who/her hail jcintty with somonns else. or whether hail for satekeeping or othoi'wisa, e~ciuding however all IRA, Kongh, and trosl accounts. Every such security interest and fight of Ss/off may bo exorcised without demand Upon or florins to Guarantor. No security interest or right of setoff shall bo deemed fo have bean waived by any act or conduct on the part of Lender or by any neglect to exercise such dght of satotf or to enforce such secudty interest or by any delay in so doing. Evo~ right of satoff and security interest shall continua in full fores and alfoct until such fight of satoff or security interest is Specifically WaiVed Or released by an instrument in writing execUted by Lender. SUBORDINATION OF BORROWER'S DEBTS TO GUARANTOR. Guarantor agrees that the indebtedness of Borrower to Lender, whether now existing or hereafter created, shall bo prior to any claim that Guarantor may now have or hereafter acquire against Sorrower, whether or not Sorrower becomes insolvent. Guarantor hereby expresNy 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 liquidetion of tho assets of Borrower, through bankruptcy, by an ass[gnmant for the bene§t of creditors, by voluntary liquidation, or otherwise, the assets of Sorrower applicable to the payment of tho claims ct both Lender and Guarantor shall be paid to Lender and shall be tirst 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 bankru~)icy of Borrower;, provided however, that such essignmect shall be effective only for the purpose of assuring to Lender full payment in legal tender of the Indebtedness. If Lander 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 egrsss, and Lender hereby is 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 enfome its dghts under this Guaranty. MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Guaranty: Amendments. This Guaranty, tcgether with any Relatsq Documents, constitL~tes the entire understanding and agreement of the parties as to the 04-19-2000 Loan No COMMERCIAL GUARAN', (Continued) Pag~ 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 or parllas sought to be charged or bound by the alteration or amendment. Applicable Law. This Guaranty has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. If there lawsuit, Guarantor agrees upon Lender's requeet to submit to the judsdiotfon of the couds of CUMBERLAND County, Commonwealth Pennsylvania. Lender and Guarantor hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either lende~ Guarantor against the other. This Guaranty shall be governed by and construed in accordance with the laws of the Commonwealth Pennsylvania. Attorneys' Fees; Expenses. Guarantor agrees fo pay upon demand ali of Lender's cests and expanses, Including afforneys' fees and Lend; isgal expanses, incurred in connection with the enfomemant of this Guaranty. lender may pay someone elea to hell~ enforce this Guaranty, Guarantor shall pay the cesta and exbensea of such enforcement. Costs and expenses Include Lander's attorneys' fees and legal whether or not there is a lawsuit, Including attorneys' fees and legal expenses for banka'uptoy proceedings (and Including efforts to modify vacate any automatic stay or injunction), appeals, and any anflcil~ated pest-judgment collection se~vicee. Guarantor also shall pay all court co: and such additional fees es may be directed by the court. Notices. NI noticea required to be given by either party to the other under this Guaranty shall be in writing, may be sent by taielaesimila (unle othem~ise required by law), and, except for revocation notices by Guarantor, shaJ be effacttve when acttlatiy delivered or when depostted wilt' nationally recognized ovarnight courier, or when deposited In the United States mall, first class postage prepaid, addressed to the pady to who the notice is to be given at the address shown above or to such other eddre~___,~_ as either party may designate to the other In writing. revocation notices by Guarantor shall be in writing and shall be effective only upon delivery to lender as provided above in the section tiff, 'DURATION OF GUARANTY." If there is more than one Guarantor, notice to any Guarentor will constitute notice lo ell Guarantors. For noti purposes, Guarantor agrees to keep Lender informed at all times of Guarantor's current addrees. Inte~p~'afaflon. In all r..L~ee where there is more than one Borrower or Guarantor, then all words used In this Guaranty in the singular shall deemed to have been used In the plural where the context and constroc~on so require; and where there is more than one B~'rower named in ti Guaranty or when this Guaranty is executed by more than one Guarantor, the words "Borrower" and "Guarantor" respectively shall mean all any one cr more of them. The words "Guarantor,' '5on'ower," and "tender" Include the helm, succeencm, assigns, and t~ansts~'aea of each them. Caption headings in this Guaranty are for convenience purposes only and ere not to be used to interpret or define the provts/ons of tt Guaranty. If a court of competent jurisdiction finds any provision of this Guaranty to be invalid or unenforceable as to any pemon ~ ctroumstan¢ such finding shall not render that provtoton invalid or unenforceable es to any other persons or clroums~ncee, and all provisions of this Guarer in all other respects shNI remain v~d and enforceable. If any one or more of Borrower or Guarantor are coq~orefions or per~erships, it is r nsc,~____,y for Lender to inquire into the powem of Borrower or Guarantor or of the otflcem, dlracfom, padnars, or agenls acting or purpodlng to on their behalf, and any Indebtedness made or created in rellanse upon the professed exemise of such powers shall be guarentead under ti Guaranty. Waiver. lender shall not be deemed to have waived any rights under this Guaranty unless such waivar is given in wilting and signed by lend; No dstey or omission on the I~art of Lender in exemtsing any right shall operate as a waiver of such rtght or any other right. A waiver by lender a provision of this Guaranty sh~ not I~rejudtoe or constitute a waiver of lende,"s dght otherwise to demand ~ compliance with that provision any other provision of this Guaranty. No prior waiver by lender, nor any course of deaJlng between lender and Guarenter, shait constitute waiver ot any of Lands~s dghte or of any of Guarantor's obligations es to any futura transactions. Whenever the consent of lender is redui~ under this Guaranty, the granting of such consent by Lender in any instance shall not conaiffute continuing consent to subsequent Inslanc where such consent is required and in ail cases such consent may be granted or withheld In the sole disorefion of Lander. LIMITED RECOURSE AS TO NON.-APPL.ICANT SPOUSE. Notwithstanding anything contained herein to the contrary, It Is agreed that, unless e~seption to the requimmento of Regulation B of the Board of Governors of the Federal Resarve Systsm applies In connection with the extension of t Indebtedness and the _',_"._-c_ution of this Guaranty, the spouse who is deemed not to be the "applicant for cradil" for purpesea of such regulation (t "Non-Applicant Spouse") shall be personally liable under this Guaranty only with respect to assets held jointly as of the date hereof or hereefl acquired, and the lien of any judgment, order or other relief against the Non-Applicant Spouse shall be limited thereto. Nothing herein, however, sh limit the lender's dghto against any parson, firm or entity other than the Non-Applicant Spouse. FINCANClAL INFORMATION - GUARANTOR. GUARANTOR SHALL DELIVER OR CAUSE TO BE DEMVERED TO LENDER NOT LATER THAN DAYS AFTER THE CLOSE OF EACH CN..ENDAR YE.N:~: (A) A COPY OF THE FEDERAL INCOME TAX RETURN FILED BY GUARANTOR, WHICH RETURN SHALL BE A TRUE AND COMPLy; = COPY OF THE RET!JRN FILED BY GUARANTOR WITH THE INTERNAL REVENUE SERVICE; AND ( AN UPDATED PERSONAL FINANCIAL STATEMENT OF GUARANTOR. IN ADDITION, LENDER MAY REQUIRE ADDITIONAL FINANCI, INFORMATION PROM TIME TO TIME AS REASONABLY REQUESTED. CONFESSION OF JUDGMENT. GUARANTOR HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS ANY ATTORNEY OR Ti PROTHONOTARY OR CLERK OF ANY COURT IN THE COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TIME F¢ GUARANTOR AFTER A DEFAULT UNDER THIS GUARANTY, AND WITH OR WfTHOUT COMPLAINT FILED, AS OF ANY TERM, CONFESS ( ENTER JUDGMENT AGAINST GUARANTOR FOR THE ENTIRE PRINCIPAL BALANCE OF THIS GUARANTY, .ALL ACCRUED INTEREST, LA' CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING Ti INDEBTEDNESS TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN A'I'FORNEY'S COMMISSION { TEN PERCENT (10%) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS TH~ FIVE HUNDRED DOLLARS ($500) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE EXECUTIONS MAY ISSUE IMMEDIATELY; AND F( SO DOING, THIS GUARANTY OR A COPY OF THIS GUARANTY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. THE AUTHORI* GRANTED IN THIS GUARANTY TO CONFESS JUDGMENT AGAINST GUARANTOR SHALL NOT BE EXHAUSTED BY ANY EXERCISE OF TH, AUTHORITY, BUT SHALL CONTINUE PROM TIME TO TIME AND AT AU. TIMES UNT1L PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER Th GUARANTY. GUARANTOR HEREBY WAIVES ANY RIGHT GUARANTOR MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH Al SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT ' EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION I JUDGMENT PROVISION TO GUAF~NTOR'S ATTENTION OR GUARANTOR HAS SEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. EACH UNDERSIGNE~ GUARANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS GUARANTY AND AGREES TO I' TERMS. IN ADDITION, EACH GUARANTOR UNDERSTANDS THAT THIS GUARANTY IS EFFECTIVE UPON GUARANTOR'S EXECUTION Al DELIVERY OF THIS GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE UNTIL TERMINATED IN THE MANNER SET FOR' tN THE SECTION TI'RED "DURATION OF GUARANTY." NO FORMAL ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARAN EFFECTIVE. THIS GUARANTY IS DATED APRIL 19, 2000. THIS GUARANTY HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. ~tJARANTOR: 04-19-200o COMMERCIAL GUARANTY Page Loan No (ContJnued) TOMMY I.~ BLOeER ~~ ) CYNTHIA L'BLOSER INDIVIDUAL ACKNOWLEDGMENT / Cou~r~oF ~,~ .~.. / ) )u Onthls, the .~..d~.~ dayof /.'.~/2./'C,~ ,20~0 ,beforeme ~,~/,~'~-./.<',,,/.<_ ./)~. ~,~,/f-/'~.</'C., ,th undemigned Notary Publb, pefsosally apl~sared TOMMY i BLOSER and CYNTHIA L BI..Oi~, known to me (or satlsfact~/proven) to be th pm'son whose names are subscribed to the within instrument, and acknowledged that they executed the same for the purpo~sa therein contained. In wllne~ whereof, I hereunto ~et my hand and official seal. Notary Publlo in and for the State of /'~. I NotadaJ Seal . Charlene M. Shearer, Notat'v Publle I Carlisle Ooro, Cumberland Count,/ My Commi. ssion Expires Feb. 10, 2003 Member, Penns~,"vanm Assoc.[on el Notaries DISCLOSURE FOR CONFESSION Or ,, JDGMENT ~.~,*~ '" ~;:~--~'~***:* * ~,.3!. ~ '~ ~'~ ' ~* ~'~- '~* ........ .~ . * = ~' *:~ ' '"~' ..... ~'~ TM~ .......... .............. ~* ~:*'~¥ .... ............... '"'~* ~ ":~:"::z~:.~.~ ~ ..... ~' =~.'*~ ..~'~ ..... "' .............................. ~ ~ ~,..~ ....... ~ in t~ s~ ~ am ~ Le~s u~ o~ and do n~ IIm~ t~ ~s d~u~nt to I~n item. Borrower: ELOSER BROTHERS (TIN: 2~;1758013) I~0 BARNSTABLE ROAD CARUSLE, PA 17013-74,3O Guarantor: TOMMY L. BI.OSER a,d CYNTHIA I- BLOSER 210 BARS'TABLE ROAD CARLISLE, PA 17013 Lender: ENc BANK, NATION/d. ASSOCIATION 4242 CARLISLE PIKE CAMP HILL, PA 17001-~74 DISCLOSURE FOR CONFESSION OF JUDGMENT A. I UNDERSTAND THAT THE GUARANTY CONTAINS A CONFESSION OF JUDGMENT PROVISION THAT WOULD PERMIT LENDER TO ENTER JUDGMENT AGAINST ME IN COURT, Al' I I=14 A DEFAULT ON THE GUARANTY, WITHOUT ADVANCE NOTICE TO ME AND WITHOUT OI"P=~ING ME AN OPPORTUNITY TO DEFEND AGAINST THE ENTRY OF JUDGMENT. IN EXECUTING THE GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND TO A HEARING TO CONTEST THE VAUDITY OF ANY JUDGMENT OR OTHER Ct. AIMS THAT ~ MAY ANSERT AGAINST ME UNDER THE GUARANTY, I AM KNOWINGLY, INTm t !GEN'TLY, AND V(X.UNTARILY WAIVING 'TI.ESE RIGHTS, INCLUDING ANY RIGHT TO ADVANCE NOTICE OF THE ENTRY OF JUDGMENT, AND I EXP~y AGREE AND CONSENT TO LENDER'~ EN't't;t.~iNG JUOGMENT AGAINST ME BY CONFESSION AS PROVIDED FOR IN THE CONFESSION OF JUDGMENT PROVISION. B. I FURTHER UNDERSTAND THAT IN ADDITION TO GIVING LENDER THE RIGHT TO EN'iI~i JUDGMENT AGAINST ME WITHOUT ADVANCE NOTICE ON A HEARING, THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY N. SO CONTAINS LANGUAGE THAT WOULD PERMIT LENDER, AFTER ENTRY OF JUDGMENT, TO EXECUTE ON THE JUDGMENT BY FORECI.O~ING UIN)N, ATTACHING, LEVYING ON, TAKING PO~,~=~ION OF OR OTHERWISE SEIZING MY PROPERTY, IN FULL ON PARTIAl. PAYMENT OF THE JUOGMENT. HOWEVER, I. ENDE~ MU~T PROVIDE NOTICE TO ME UNDER APFUCA~LE LAW IN EXECUTING ANY CONFESSED JUDGMENT. IN EXECUTING TH~ GUARANTY, BEING FULLY AWARE OF MY RIGHTS TO ADVANCE NOTICE AND A HEARING AFTER JUDGMENT I$ ENTERED AND E~=OFIE EXECUTION ON THE JUDGMENT, I AM KNOWINGLY, INTE]~IGENTLY AND VOLUNTARILY WAIVING THESE RIGHTS, AN{) I EXPRESSLY AGREE AND CONSENT TO LENDER'S EXECUTING ON TH~ JUDGMENT, IN ANY MANNER PERMITTED BY APPUCABLE STATE AND FEDERAL LAW. C. Arlr.~ HAVING READ AND Dr. lr..~MINED WHICH OF THE FOLLOWING STATEMENTS ARE APPLICABLE, AND BY PLACING MY INITIALS NEXT TO EACH STATEMENT WHICH APPLIES, I REPRESENT THAT: INITIALS 1. I WAS REPRESENTED BY MY OWN INDEPENDENT LEGAL COUNSEL IN CONNECTION WITH THE GUARANTY. '~'.~' A REPRSSERTATIVE OF LENDER SPECIFICALLY CAU.ED THE CONFESSION OF JUDGMENT PROVISION IN THE GUARANTY TO MY ATTENTION. D. I CERTIFY THAT MY ANNUAL INCOME EXCEEDS $10,000;, THAT THE BLANKS IN THIS DISCLOSURE WERE FII ! I=n IN WHEN I INITIALED AND SIGNED IT; AND THAT I RECEIVED A COPY AT THE TIME OF SIGNING. THIS DISCLOSU~E HAS BEEN SIGNED AND SEAl k-n BY THE UNDERSIGNED. AFFIANT: TOMMY L BL.O~ER C~'NTHIA L ELOSER · ,-' . PROMISSORY NOTE :: ~!~::~:i~":~ '.' '~" =============================== :~::::' ~"'~!~:×'~" ~ ~::~:: ":~"~'"'~"~' ;:::"~×"~ :' '::~: ............. :: ....::~;:~::i~!~ ~?i~:::~!~:~:::~:~i:::.:i;~:: ::~:~i~i~ i~;::~ :~: ~:~ii:~¢ ~ ~: :~::~ ~:~:..~i~::::~::!:~:ii:::~i~ ~;~:~ ~!;: ~::~,~;~ References in the shaded area are for Lender's use only end do not limit the applicability of this document to any particular loan or item. Borrower: BLOSER BROTHERS (TIN: 25-1758013) Lender: PNC BANK, NATIONAL ASSOCIATION 1so BARNSTABLE ROAD 4242 CARLISLE PIKE CARLISLE, PA 1701:! CAMP HILL, PA 17001-.8S74 Principal Amount: $40,000.00 Initial Rate: 8.750% Date of Note: April 30, 1999 PROMISE TO PAY. BLOSER BROTHERS ("Borrower") proml~es to pay to PNC BANK, NATIONAL ASSOCIATION ("Lender"), or order, In lawful money of the United States of America, the principal amount of Forty Thousand & 0~/100 Dollars ($40,000.00) or so much as may be outstanding, together with Interest on the unpaid eutatandlng principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each edvasoa. PAYMENT. Borrower will pay this loan in occordance with the following payment schedule: Borrower will pay regular monthly payments of accrued Interest beginning MAY 31, 1999, and ell sobsaquant Interest payments are due on the last day of each month after that. Sorrower will ~ this loan in one payment of all outstanding principal plus all accrued unpaid Interest on the Expiration Date. Borrower may I~-'row, repay and rchorrow hereunder until the Expiration Date, subject to t~e terms and conditions of this Note. The "Explrstlon Date" shall mean MARCH 19, 2000, or such later date as may be daslgnxted by whiten notice from Lander to Borrower. Borrower acknowledges and agrees that In no event will Lender be under any obligation to extend or renew the loan or this Note beyond the Initial Expiration Date. In no event shall the aggregate unpaid principal amount of advances under this Note exceed the fane amount of thta Note. The ecnuat interest rate for this Note is computed on · 3651360 basis; that is, by applying the ratio of ~he annual interest rata 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 wdting. Unless otherwise agreed or required by applicable law, payments will be applied flint to accrued unpaid interest, than to principal, and any remaining amount to any unpaid collection costs and late charges. VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to ffme baeed on changes in an index which is the Lender's pdme rate (the "Index"). The index is a rate per annum as publicly announced by Lender from time to time as ils pdma rate. The prime rate is not tied to any external rate or index and it doss not neoassadly reflect the lowest rate of interest actually charged by Lender fo any pa~culsr class or category of customers. Lender wilt tell Sorrower the current index rate upon Sorrower's request. Borrower understands that Lender may make loans based on other rates as well. The interest rate ctiange will not occur more often than each day. The Index currently Is 7.750% per annum. The Interest rate to be applied to the unpaid principal halsoCe of this Note will be at a rate of 1.000 percentage point over the Index, reselling in an initial rate of 8.750% per annum. NOTICE: Under no cimumstancas will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unress agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, they will reduce the principal balance due. LATE CHARGE. If a payment is lS days or more late, Borrower will be charged $.000% of the unpaid portion of the regularly scheduled payment or $100.0~), whichever Is less. DEFAULT. Borrower will be in default if any of the following happens: (a) Borrower fails to make any payment when due. (b) Borrower breaks any promise Sorrower has made to Lender, or Borrower fails to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreement or loan Sorrower has with Lender. (c) Borrower defaults under any loan, extension et credit, secudty agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the Related Documents. (d) Any representation or statement mede or furnished to Lender by Sorrower or on Sorrower's behalf is false or misleading in any matadal respect either now or st the time made or furnished. (e) Any partner dies or any of the partners or Borrower becomes insolvent, a receiver is appointed for any part of Sorrower's property, Sorrower makes an assignment for the benefit of creditors, or any proceeding is commenced either by Sorrower or against Borrower under any bankruptcy or insolvency laws. (f) Any creditor ~as to take any of Borrower's proper'o/on or in which Lender has a lien or security interest. This includes s garnishment of any of Borrower's accounts with Lender. (g) Any of the events described in this default section occurs with respect to any general partner of Sorrower or any guarantor of this Note. (h) A material ed~rse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is impaired. LENDER'S RIGHTS. Upon default, Lander may, after giving such notices as required by applicable ~aw, declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount. Upon default, including failure lo pay upon final maturity, Lender, at its option, may also, if permitted under applicable law, increase the vadable interest rate on this Note to 6.000 percentage points over the Index. The interest rate will not exceed the m~ximum rate permitted by applicable law. Lender may hire or pay someone alee to help collect this Note if Borrower does not pay. Borrower slab will pay Lender that amount. This Inc~udas, sui~ject to any limits under applicable law, Lender's attorneys' fees and Lender's Iegal expenses whether or not lhere is a lawsuit, including altorcays' lees and legal expenses for bankruptcy proceedings (including effods to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgmect collection services. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law. If judgment is entered in connection with this Note, interest will continue lo accrue on this Note after judgment at the interest rate applicable to this Note at the time judgment is entered. This Note has been delivered to Lender an~l accepted by Lender in the Commonwealth of Pennsylvania. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of CUMBERLAND County, the Commonwealth of Pennsylvania. Lender and Sorrower hereby waive the right to any jury trial In any action, proceeding, or counterclaim brought by either Lender or Borrower against the other. This Note shall he governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. Borrower grants to Lender a contractual secudty interest in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrower's right, title and interest in and to. Borrower's accounts with Lender (whether checking, savings, or some other account), including wilhoul limitation all accounts held jointly with someone else and ail accounts Borrower may open in the future, excluding however ail IRA and Keogh accounts, and all trust accounts for wh(ch the grant of a security interest would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setolf all sums owing on this Note against any and all such accounts. COLLATERAL. This Note is secured by a Mortgage dated April 30, 1999, to Lender on real property located in CUMBERLAND County, Commonweellh el Pennsylvania, all the terms and conditions of which ar~ hereby in[orporated and made a part of this Note. o~-30-1sss PROMISSORY NOTE . Parge 2 Loan No (Continued) LiNE 0F CREDIT. This Note evfl:lm~es a ~i~ I1~ ~ c~t. Adv~ un~r thl~ Note may ~ mq~ ~ by Be~ ~ ~y ~n &~ho~ p~on. Lende~ may, ~ n~d ~t, ~uire that ~1 ~ ~ ~ c~ed In w~i~ ]. All commun~o~, i~o~, ~ ~o~ by ~ho~ Or 0th~e to Lender ~ te be ~e~ to L~d~s office shown ~o~. The f~ ~ ~ ~ ~ aut~d to ~ ~ un~ the }i~ o~ c~it until Len~ r~v~ ~m B~ at ~ ~ sh~n ~ove wH~ no~ ~ mv~n ~ thor autho~: ST~ L. ~OS~ ~d TOMMY L. BLO~R. BO~ a~ to be fla~ ~r ~1 ~ ~th~ (a) ad~n~ i. a~de~e ~h ~ i~ons ~ ~ sut~ p~on or c:~i~ to any of B~er's a~au~ ~th ~. ~e unp~d prl~ipaf b~an~ o~ i~ on ~ Note =t any ~me ~y ~e ~idenc~ by end~ an th= Note ~ by Len~s i~ ~, in~ffi~ ~ compu~ pnnt~, be ~d~ w~ ~ve no o~figa~on = =~ fun~ u~r this No~ If: (~) Border ~ any g~= s In ~1 under ~e ~ of ~ N~e m a~ ~nt that B~r ~ ~y ~t=r ~ with ~, I~ing any a~ment ma~e In con~ ~th ~ sig~ ~ t~ N~ (b] Bottler or a~ gu=rant= c~ ~i~ b~i~ ~ ~ i~nt; (c) any s~s, ~ or o1~ ~ ~ limit, modl~ or revoke such gu~nto~s g~t=~ ~ ~ ~ ~ any ~ Iosn wi~ ~n~; or (d) Bo~er ~=s appli~ lun~ provided p~tsuant to this N~ f~ p~ offier t~n t~ a~ei~d by Len~. (~ANUF PROVISION. ~r~ ~n~dg~ ~nd ~ that prior to the ~ir=fl m Da~ and enn~iy t~ffier if the ~lm~on Ds~ ~ e~n~, i~l smoun~ b~o~ u~ the line of cr~t ~mun~ m~t ~ r~ in ~li so thai t~re ~ no ou~tng pHn~p~ ~ ~r a period of at ~t ~t~R ~ COM~CE. B~owm h= m~ the a~ within ~ buNn~ and ap~o~ W~ co~ ~ e~ ~ by, and ~ ~op~ or is ~ffi~ a pt~ to ~d~ =n a am~y b~ the ~k th~ ~n ~p~ ~fl~ u~ by B~o~ ~y be unsb~ to ;~0 Problem ~11 not r~lt, and Is not ~o~ ~d 1o ~u~, In any ms~ ad~ ~ on t~ bu~, ~ope~, ~, flna~l ~=ondiflon, r~ul~ ~ ~m ~ pr~ ~ B~ow~, or ~e ~i~ ~ Bo~o~r to duly ~d pun~ly pay = p~ I~ ~o~ h~nd~ ~nd '~OTtCE OF DEMAND. Uoon ~ (~) ~ ~ w~n no~ te Bo~, ~n~ may al any ~ w~ ~ w~=~ ~u~, ~nd ~ payment :he ou~ndi~ pd~ bNa~ O~ this ~, ~ ~rued and =~ in~t on t~ b~, and ~l ~h~ am~n~ d~ In ~ ~th the ~s 3~ t~ Nord or any ot~ d~umen~ ~ in conch w~ ~is No~. Unl~ ~n~s no~ce ~m~ o~e~, ~n~ wi~ ~ no ~ =~aflon to ~e any ~ I~ to 8o~. Te~inaflon un~r ~ ~ar~g~h ~ not a~ any ~ ~c~ by ~ ~ ~ ~ ~ on t~ ~mina~n ~. If LePer ~. at ~ sole ~ti~, to ~e ad~ a~r givi~ s~ ~a~, ~ ag~ t~t any such s~ll ~e ~den~ by t~ Note. ~1~ NO~ This ~ amen~ an~ r~, and ~ }n su~tu~on fro, a N~ in tie pH~ =mount ~ ~,~.~, ~le to ~n~, ~ 19, 19~ (t~ "Or~i~ NO~'). Howe., w~out ~u~i~on, th~ a~n~ end r~d NO~ sh~l n~ =o~ · n~flon an~ s~l In ~o way ~nguis~ 8~ow~s o=l~aon t= ~y ~ ~nd~m~n~ ~e~ by t~e ~ ~. Nothi~ ~n ~ intend~ to ~sir t~e gdo~ ~ ~ any medgage with t~ to the Bo~w~'s obligations he~nd~ and un,er ~y ot~ d~nt ~a~ G~AL PROVISIONS. Len~r ~y d~ay = forgo e~ any ~ its r~h~ or re~i~ un~ ~ N~ ~0~ Io~ng ~m. B~ and any ot~r ~on who signs, g~mn~ ~ e~ t~ No~, ~ the ~t ~low~ ~y t [w, w~e ~=~nt, dem~d for ~yment, ~r~ and n~e d~on=. U~on shy ~ In ~ t~ms ~ this NO~, and u~s oth~e ~y s~ in ~, no ~ who ~ ~ NO~, w~ ~ m~r, for any len~ of time) th~ I~n, = r~ any ~a~, ~, = g~a~or = coltet~=l; or impair, ~1 ~o r~ upon ~ ~ ~n~'s ~N in~t in t~ ~lete~al; and ~ke any oth~ ~ion ~d ~ by ~ w~oul tPe count o~ or n~ to anyo~. NI s~h ~a~ al~ ~ that Len~ ~y modi~ ~ [~n without the con~f of or no~ ~ ~yo~ other than the ~ ~th whom ~ m0drfl~on ~ ~. if any ~on ~ th~ Note is ~ any r~ ~min~ to ~e unenf~le, it wi~ not a~ ~ ent~es[3iti~ ~ any other ~o~ of th~ N~. CO~E~IQN OF ~T. BO~OWER HER~Y I~EV~LY A~ORiZES AND EMP~E~ ~ A~ORN~ OR ~ ~~Y OR CLERK ~ ANY CO~ iN THE COMMON~L~ ~ ~NN~VANtA, OR EL~HERE, TO AP~ AT A~ TIM~ F~ B~RO~R ~R A DEFA~T UNDER THIS H~, ANO WI~ ~ WI~O~ COM~INT FILED, ~S ~ A~ ~RN, C~FESS ~ E~R JUDGME~ AGAIN~ BORRO~R FOR ~E ENTRE PRINCIP~ ~A~NCE OF ~iS N~, ALL ACCRUED t~RE~, ~ C~RGES, AND ~ ~ ~L AM~S EXPENDED ~ ~VANC~ BY LENDER RE~T~G TO ANY C~R~ S~CURING ~lS N~ TO~HER WI~ l~E~ ON SUCH AMOURS, TO~HER WITH CO~S ~ ~IT, AND AN A~ORN~'S COMN.IS~ON ~ ~N ~RCE~ (I~) ~ T~ UNPAID PRI~IPAL BA~NCE AND AC~UED I~RE~ F~ C~C~ON, B~ IN A~ E~ NOT ~SS ~N FI~ ~ND~D OOL~S (~) ON WHICH JUDGMENT OR JUOGMENT~ ONE OR M~ ~C~O~ MAY iSSUE iMMEEIA~LY; AND FOR ~ DOING, THIS N~ OR A CO~ OF NO~ ~RtFIED BY ~F~C,AVIT S~LL BE SUFF~CIE~ W~NT. T~ AUFH~I~ G~N~D IN ~IS NO~ TO C~ESS JUDGMENT A~IN~ ~OWER SH~L ~T BE ~HAu~D BY A~ ~RCi~ ~ ~A'" A~R~, B~ ~L CO~NUE FROM TIME ~ TiME AND AT ALL TIMES U~L PAYME~ rN FU~ ~ A~ AMOURS DUE UNDER THIS NO~. BORROWER HE~Y WAI~S ~ RIGHT B~ROWER MAY ~ TO NOTI~ ~ TO A ~ARING IN CONNE~ON WITH A~ SUCH CON~SSION OF J~GME~, ~ A~ NO~CE A~IOR H~RiNG REQUI~D UNOER APPU~ ~W WiTH RESPE~ TO ~E(;~ION ~ ~E JUDGME~, A~ ~A~S THAT E~R A REPRE~ATI~ OF LENDER S~C[FI~Y ~ THIS CON~SSION ~F JUDGME~ ~OVISION TO B~ROWER'S A~NTION OR B~ROWER HAS BEEN REPRESE~D BY INDEPENDE~ LEGAL COUN~L. PRIOR TO SIGNING ~ ~T~, ~RR~ER R~ ~ UN~T~D ~ THE P~VlSI~S OF THIS NOTE, IN~I~ ~ V~I~E IN~EST RA~ PR~IB~ON~. ~RROW~ AGR~ TO T~ T~MS ~ T~ ~ ~D ACK~G~ RECEi~ OF A CO~ C~Y OF ~E ~. BO~OW~: BLOS~ BROTHS "OMMY L, BLOSER, Ge.emi Perlner PROMISSORY NOTE References in the shaded area are for Lender's use only and do not limit the applicabili~ of this document to any particular loan or item. Borrower: BLOSER BROTHERS (TIN: 2S--1768013) lEO BARNSTABLE ROAD CARLISLE, PA 17013 Lender: PNC BANK, NATIONAL ASSOCIATION 4242 CARLISLE PIKE CAMP HILL, PA 17001,-.8874 Principal Amount: $35,000.00 Initial Rate: 8.750% Date of Note: April 30, 1999 PROMISE TO PAY. BLOSER BROTHERS ("Borrower") promises to pay to PNC BANK, NATIONAL ASSOCIATION ("Lender"), or order, In lawful money of the United Stste~ of America, the principal amount of Thirty Five Thousand & 00/100 Collars ($3s,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance. PAYMENT. Borrower will pay this loan in accurdance with the following payment schedule: Prior to the Conversion Dale, Interest only shall be due end payable commencing on May 31, 1999, and continuing on the last day of each month thereafter until the Conversion Date, when all accrued interest shall be due and payable, with interest calculated on the unpaid principal balance at the Index plus one percent (1.0%). From and after the Conversion Date, principal and interest shall be due and payable in sixty (60) equal consecutive monthly Installments, each In an amount sufficient to fully amortize the outstanding balance of this Note over five ($) years, commencing on the last day of the month fuifuwthg the month in which the Conversion Date occurs, with Interest calculated on the unpaid principal balance at Lender's "as offered" fixed Interest rate. Any outstanding principal and Interest shall be due and payable In full on the fifth anniversary of the Conversion Date. The annual interest rate for this Note is computed on a 385/360 bests; that is, by applying the ratio of the annual interest rate over a year of 360 days, mult~piied 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 ~bove or at such olher place as Lender may designate in wdting. 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. 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 the Lender's pdme rate (the "Index"}. The index is a rate per annum as publicly announced by Lender from time to time as its pdme rate. The pdms rate is not tied to any external rate or index and it does not necessarily reflect the lowest rate of interest actually charged by Lender to any particular class or category of customers. Lender will tell Borrower the current Index rate upon Borrower's request. Borrower understands that Lander may make loans based on other rates as well. The interest rate change will not occur more often than each day. The Index currently Is 7.750% per annum. The Interest rate to he applied to the unpaid principal balance of thta Note will be at a rate of 1.000 percentage point over the Index, resulting In an Initial rate of 8.750% per annum. NOTiCE: Under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable law. PREPAYMENT PENALTY. Upon prepayment of this Note, Lender Is entitled to the fcilowlng prepayment penalty: On any business day, upon payment of eli accrued unpaid Interest on this Note, and upon five (s) business day's prior written notice to Lender, the Borrower may prepay ail or part of the outstanding principal hereunder; provided, however, that If the repayment la mede during a Fixed Rate Parted, the Borrower, where not prohibited by law, also agrees to pay Lender as compensation for the cost of being prepared to advance fixed rate funds hereunder an amount equal to the Cost of Prepayment. "Cost of Prepayment" means an amount equal to the present value, if positive, of the product of (a) the dlfferense between (i) the yield, on the beginning date of the Fixed Rate Period, o! a U. S. Treasury obligation with a maturity similar to the Fixed Rate Period minus (ti) the yield on the prepayment date, of a U. S. Treasury obligation with a maturity similar to the remaining maturity of the Fixed Rate Period, and (b) the principal amount to he prepaid, and (c) the number of years, Including fractional years, from the prepayment date to the end of the Fixed Rate Period. The yield on any U. S. Treasury obligation shall be determined by reference to Federal Reserve Statistical Release H.15($19) "Selected Interest Rates". For purposes of making present value catculstlons, the ytald to maturity of a similar maturity U. S. Treasury obligation on the prepayment date shall be deemed the discount rate. The Cost of Prepayment shall also apply to any payments mede after acceleration of the maturity of this Note while a Fixed Rate la In effect.. Except for the foregoing, Borrower may pay all or a po~on of the amount owed earlier than it is due. Eady 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, they will reduce the principal balance due. LATE CHARGE. If a payment is 15 days or more late. Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment or $100.00, whichever ts Ieee. DEFAULT. Sorrower will be in detault if any of the following happens: (a) Sorrower fails to make any payment when due. (b) Borrower breaks any promise Sorrower has made to Lander, or Borrower fails to comply with or to perform when due any other term, obligation, covenant, or condition contained in this Note or any agreement related to this Note, or in any other agreement or loan Borrower has with Lender, (c) Borrower defau{ts under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of Related Documents. (d) Any representation or statement made or furnished ta Lender by Sorrower or on Borrower's behalf is false or misleading in any material respect either now or at the time made or furnished. (e) Any padner dies or any of the padners or Sorrower becomes insolvent, a receiver is appointed for any part of Bcrrower's propen~/, Borrower makes an assignment for the benefit of creditors, or any proceeding is Commenced either by Sorrower or against Borrower under any bankruptcy or insolvency laws. (f) Any creditor (hes ID take any of Borrower's property on or in which Lander has a lien or security interest. This includes a garnishment of any of Borrower's accounts with Lender. (g) Any of the events described in this default section occurs with respect to any general partner of Borrower or any guarantor of this Note. (h) A material adverse change occurs in Borrower's financial ccndilion, or Lender believes the prospect of payment or pedormance of the Indebtedness is impaired. LENDER'S RIGHTS. Upon default, 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. Upon detault, including failure ID pay upon final maturity, Lender, at its option, may also, if permitted under applicable law, increase the variable interest rate on this Note to 6.(300 percentage points over the Index. The interest rate wifi not exceed the maximum rate permitted by applicable law. Lender may hire or pay someone else to help coltsct this Note it Bcrrcwer does not pay. Sorrower also wilt pay Lender that amount. T~is includes, subjecl to any limits under apl31icable law, Lender's attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruplcy proceedings (including efforts to rnodity or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment cofiecticn serv=ces. If not ;3rohibiteci by applicable law, Borrower also will pay any court costs, in addition ~o all other sums provided by 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. o4-3o-1999 PROMISSORY NOTE page Loan. No (Continued) This Note has been delivered to Lender and accepted by Lender in the Commonwealth of Pennsylvania. If there ia a lawsuit, agrees upon Lecder'a request to submit to the turtedlction of the courts of CUMBERLAND County, the Commonwealth et Pennsylvania. Lender and Borrower hereby waive the right to any jury trial in any action, proceedtug, or counterclaim brought by either Lender or Borrower sgelnst the other. This Note Ntall be governed by and construed In accordance with the laWS of the Commonwealth of Pennsylvania. RIGHT OF SETOFF. Borrower grents to Lender a contractual secudty interest in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrower's right, title and interest in and to, Borrower's accounts with Lender (whether checking, savings, or some other account), including without limitation alt accounts held jointly with someone else and all accounts Borrower may open in the future, mccluding however all IRA and Keogh accounts, and ail trust accounts for which the grant of a security interest would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against sm/and ell such accounts. COLLATERAL. This Note is secured by a Mortgage dated Apdl 30, 1990, to Lender on mai property located in CUMBERLAND. County, Commonwealth of Pennsylvania, ell the terms and conditions of which are hereby incorporated and made a part of this Note. LINE OF CREDIT. This Note evidences a straight line of credit. Once the tutai amount of principal has been advanced, Borrower is not entitled to turt;'~ar loan advances. Advances under this Note may be requested orally by Borrower or by an authorized person. Lender may, but nasd not, require that ali oral requests be confirmed in writing. All communications, instructions, or directions by telephone er otherwise to Lender are to be directed to Lender's office shown =hove. The following party or pm'ties are authorized to request advances under the line of credit unfit Lender receives from Borrower at Lecde~s address shown =hove wdtten notice of revocation cf their authority: STEVEN I. BLOSER and TOMMY L. BLOSER. Borrower agrees to be liable for all sums either:. Ia) advanced in acccrdsnce with the instructions cf an authorized person or Ih) 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 dally computer print-outs. Lender will have no obligation to advance funds under this Note if: Ia) Borrower or any guarantor is in detsult under the terms of this Note or any agreement that Borrower or any guarantor has with Lender, icctuding any agreement made in connection with the signing of this Note; (b) Borrower or any guarantor ceases doing business or is insolvent; (c) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's guarantee of this Note or any other Iosn with Lender;, or Id) Borrower has applied funds provided pursuant to this Note for purposes other than those authorized by Lender. ADDITIONAL INTEREST RATE PROVISION. NIA. FEES. On the date of this Note, the Boo'ewer shall pay to Lender a fee of $350.00. YEAR 2000 COMPLIANCE. Borrower has reviewed the areas within its business and operations which could be sdversaiy affected by, and has developed or is developing a program to address on e timely basis the risk that certain computer applications used by Borrower may be unable to recognize and perform properly date-sensitive functions involving dates pdor to and after December 31, 1999 (the "Year 2(300 Problem"). The Year 2000 Problem will not result, and is not reesonsbly expected to result, in soy matedai adverse effect on the business, properties, assets, financial condition, results of operations or prospects of Borrower, or the ability of Borrower to duly and punctually pay or perform its obligations hereunder and under the Related Documents. CONVERSION DATE. It is agree~ that subject to the terms and conditions of this Note and other loan documents, advances under this Note may be requested until October 31, 1999, or until ell the funds are advanced, whichever occurs first. Amounts advanced and repaid may not be reborrowed. GENERAL PROVISIONS. Lender may daisy or forgo enforcing any of its dghis or remedies under this Note without losing them. Borrower and any other person who signs, guarenteee or endorses this Note, to the extent ~ilowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any change in the terms of this Note, end unless otherwise expressly slated in wdting, no party who signs this Note, whether as maker, guarsnter, accommodation maker or endorser, shall be released from liability. AJI such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan, or release any party, partner, 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 moditic~tion is made. 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 A'iTORNEY 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, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ALL AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUIT, AND AN ATI'ORNEY'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; ANO 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 CON'F;NUE FROM TIME TO TiME AND AT ALL TIMES UNTil PAYMENT IN FULL OF ALL AMOUNTS DUE UNDER THIS NOTE. BORROWER HEREBY WAIVES ANY RIGHT SORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPLICABLE LAW WITH RESPECT TO E~(ECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO BORROWER'S A'C~ENTiON 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 [~t.<MB OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE. THIS NOTE HAS BEEN SIGNED AND SEALED BY THE UNDERSIGNED. BORROWER: SLOSEI:~8~OTHERS By: i :: :.:. :.::. By: STEVEN L. BLOBER, General Partner TOMMY L. ~LOSER, General Partner PROMISSORY NOTE Rele~nsas in the shaded area are for Lender's use onl~ and do not limit the applicability of thl,. document to ·ny pe~licuier loan or item. Borrower: BLOSBR BROTHERS (TIN: 251766013) Lender: PNC BANK, NATION,N. ASSOCIATION 160 BANNSTNgLE ROAD 4242 CARLISLE PIKE CARLISLE, PA 17013-7420 CAMP HILL, PA 17001-~74 Principal Amount: $26,000.00 Initial Rate: 10.000% Date of Note: April 19, 200 PROMISE TO PAY. BLOSER BROTHERS ("Borrower") promine· to pay to PNC BANK, NATIONAL ASSOCIATION ("Lunder"), or order, In Inwft. money of th,. United Sthto~ of Amedoa, th· principal amount of Twenty Slx Thounund & 00/100 Collars ($26,000.00), together with Interest · the unpaid pllncipei balance from Athll 10, 2000, until paid In toll. PAYMENT. Sorrower wlH pay thl,. loan In one prlnofpel payment of $28,000.00 plus Interest on Junuary 31, 2001. Thte payment due Junear 31, 2001, will be for adl pglncipoi und aco~ Interest not yet paid. In addition, Borrower will pay regular monthly peymertto of all unpaid Inte~lat due ,,~ of each peyr~ date, beghtning Mey 15, 2000, with all aubunquenl Interuet poymunt~ to be due on th· same day c each month oftor that. The ,.nnual Interest rah,, for this Note is computed on ~, 365/360 basis; that Is, b), applying the ratio Of the eunuai interest ret~ Over · year of 360 cisys, mulUplind by th· outstanding principal leal·nos, multiplied by the actual nund~er Of rlJys the principal bai,.nea is outstendin; Borrower will ps)' Lender (it L,.nder's ,.ddross shown ~P, ove or st such other' pluto es Lender m(iy designate in writing. Unless otherwise '.greed c required by applicable law, paym,.nle wlil be applied first to ecorued unpaid interest, then to p~inctpai, ·nd ,.ny ram'.thing amount to ,.ny unpai~ collection costs and late chergos. VARIABLE INTEREST RATE. Th· interest raale on this Note is subject to cheng,, from time to tim· based on chenges In an index which is the Lender' prim', rets (the "Index-'). The index is · rate per annum es publicty announced b), Lender from tim· to tim· es its prime rat'.. Th,. prime rate is not tie( to any external rate or Index lind it does not noc~_,tty reflect the lowest rat· of interest antue, liy charged b), Lender to ,.ny perliculer class or eatngor of customers. Lender wtti tell Bun'ower the. curlent Index rain upon Borrower's request. 8orrowor undemtends that Lender mJy reek,, loans ~ or other rates es wail. The intem~t rate change will not occur more often than each day. Th· Index currently I,. O.0QQ% per unnum. Th· totooslt rei~ to be applied to the unpatd pdnclpei beinnce of thte Note will be at · rate of 1.000 peroantage point over tho Index, resulltog In un Inltinl rate o 10.000% per annum. NOTICE: Under no circumstances witi the interest rets on this Note be more than the rnaudmum rate allowed by '.pplioabte law. PREPAYMENT. Bec'ewer m~¥ pa), without penalty ail or · portion of the amount owed earlier th,.n it Is due. I::arty payments wiG not, unless ,.0lead t( hy/,.nder in writing, relieve Borrower of Borrower's obli0alton to continue to m'.k,, peyrcents under the p·),ment echeedute. Rather, the)' will reduce principal balance due. LATE CHARGE. If ,. payment I,. 1'= day'. or mole late, IBortower will be charged 6J)o0~ of the unpaid porlkm of the regularly echeduted peymen or $100,00, willcbever I., ~ DEFAULT. Borrower will b,. in del·uti it ,.ny of the following heapp,.ns: ((i} Borrower fails to n~lke 8ny p·yment when due. (b) Bm'Tower breaks promise 8orrower has mede to Lender, or Borrower f'.gs to compty with or to p~orm when due ·ny other term, obligation, covenant, or condiffor contained in this Note or err/ngreanmnt related to this Note, or in '.n), other ,.graement or loan Bec'ewer has with Lender. (o) Borrower defaults undo any loan, e~denaion of credit, secudly e0reement, pun:;hase or sales agream,.nt, or ,.ny other ,.grnement, in Invor of ,.ny ofhar oradiinr or per·on the me), melehalty affect ,.ny of Borrower''. properly or Borrower's ability to repay this Note or parform Bon'ower's obligations under this Note or ;an)' Of Rehited Documents. (d} Any repreesntetion or steinment made or furnisheed to Lender by Borrower or on Borrower's behalf ia tslea or miste-,dthg in an' maler~J respect either now or ,~t th· time mad'. or furnished. (e) Any padner dies or ,.ny of the dedners or Borrower becomes insolvent, · receiver i: · ,ppointed fo' ,.n), part of Oon'ower's property, Borrower makes ,.n esaignm,.nt for the. benefit of creditors, or ,.ny proceeding is come·hued either b Borrower or sgainst 9un'ower under ,.ny beankruptny or Insoive~c)' lews. (f} Any creditor Ines tu blk,. ~ Of non'ewer',, property orl or in which Lands has · lien or security interest. This ind,,Iudos -, gernishmant of ,.ny of Borrower's accounts with Lender. (g) Any of th,. events described in thIs deleu section occurs with respect to ·ny general partner Of Borrowe~' or any gueraninr of this Note. (h) A material adverse chang,, occurs in Borrower': tin,.nctsl condition, or lender believes the prospect of p·),rnent or perform,.nce of the Indebtedness is impaired. LENDER'S RIGHTS. Upon de~,uit, Lender may, after giving such notices es required b), ,.pplicsble law, declare Ihs ,.ntira unpaid principal balance o; this Note -,nd ail ,.ocrued unpeJd Interest [mmedleteJy due, ,.nd then BofTower will pa), th,.t '.mount. Upon default, including failure tO pay upon meiurtty, Lender, ,.t its option, m,.)' ·ice, if permitted under applic;&ble lew, increase the variable interest rate on this Note to 6.000 bert'.hi·go point over the Index. The interest rate witi not ~d the maximum rein pen'nitted by ,.ppliosble I,.w. Lender may hire or pa), comeone ~ to haip co#~: this Note if Borrower does not ps),. Borrower ·ice witi p,.), 1,.rider that amount. This. Includes, subject to ,.ny limits under applioal:)te tew, lender' attorneys' fees ,.nd Lende¢,. legal expenses whether or not there is ,. lawsuit, inoiu~ng ,.tinrneys' fees ,.nd Ingal exp,.nses for bankruptcy proceeding (inctuding efforts to modify or veoate ,.ny antom,.tic stay or injunction), appesis, and ;in)' anffoip(ited post-judgment coitsction esl%'ices. If nc prohibited b), abplicebl· law, Borrower ~ wifl paL)' ~n)' coud costs, in addition In ail other sums provided by law. tf Judgm,.nt Is entered irt connectto with this Note, interest witi continue to ecorue on this Note alter judgment ,.t the Interest rate &pplic-,ble to this Note ,.t tho tim'. judgment Is enterec Tin,. Note ~ been deilveled to Lender end accepted by Lender In the Commonweeith of Pertneyluenla. If there te · tsw~ult, Borrower ngr'.e upon Lander'-. reque.'.t to submit to th· jurledinttofl of th· court~ of CUMBEFU. ANI) County, the Contmonwealth of Penneylvunte. Lender an, Borrower hereby waive the right to '.ny Jury tdei In uny actlun, Ixocundthg, or counterclaim brought by either Lertder er Borrower against th other. Tin,. Note ~ be 0ovemed by and con~,h'IJed In ---'~--~dence with the law· of th· Comntonweeith of Penneyluenla. RIGHT OF SETOFF. Borrower grants tu Lender ,. contraofusl secuttly interest in, and hereby assigns, conveys, delivers, I:)ledgas, ,.nd transfers i Lender ,mil Borrower's right, tiU,. and interest in lind to, Borrower's accounts with 1,.rider (whether checking, s~',/ings, or some other socount), Inctudin without limitation ail accounts held jointly with someone else and all eccounts Borrower may open in the future, e~:duding however ail IRA ·nd Keog accounts, ,.nd ail trust accounts for which the grant of ii security interest would de prohibited by law. Sorrower ,.uthodzos Lender, to the exist perrnilted b), applicable I,.w, to cherg,, or satoff ,.1t sums owing on this Note against any end all such accounts. COLJ..ATERAL. This Note is secured by (i Mort011g,. dated A,odl 19, 2~00, to Lender on real properfy located in CUhiBERLAND Count' Commonwesith of P,.nnsylv,.nle, -,ti the terms end conditions of which er,. hereb), incorporaind ,.nd made · part of this Note. YEAR 2000 COMPLIANCE. 5mTOWer has revlewecI the eraes within its busir~ess end oper,.ffons which could be ,.dversety affected by, and h; developed or is devetoping ,. program to ,.ddmss on ,. timel), basis the dsk that certain computer applicetions used b), Borrower ma), be uceble. I recognize ,.nd pa~orm proped), deie-sensitiYe functions involving detes prior to and after December 31, 1999 (the "Ycer 2000 Problem"). The Yez 2soo Problem will not result, end is not rexsonebl)' ex~ected to result, in ,.ny materiel adverse ,.finof on the business, properties, -seats, condiUon, results of ol:)eraffons or prospects of Borrower, or the ability of Borrower to dui), ,.nd punctually pay or perform its obligations hereunder under the Related Documents. 04-19-2ooo PROMISSORY NOTE Page 2 Loan No ' (Continued) G~TriERAL PROVISIONS. Lender may detey or forgo enforcing any of its ;lghts or remedies under this Note without losing them. Ben'ower and any other pemon who Ngns, guarantees or end,~rass this Note, to the extent allowed by law, waive presentment, demand ~ payment, protest end notice of dishonor. Upon any change In the tem~ of this Note, and unless otherwise expressly staled in writing, no derly who signs this Note, whether as maker, guarantor, accommodation maker or endomer, shall be ~ from liability. AJ such parties agree that Lender may renew or extend (repeatedly and for any isngth of time) this loan, or release any parly, partner, or guarantor or collateral; er impair, fall to realize upon or perfect Lender's secudty interest in the collalami; and take any other action deemed n~-~__~y by Lender without the consent of or notice to anyone. All such padias aiso ag~'ee that Lender may modify this loin without the consent of or notice to anyone other than the parly with whom the modification is mede. 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. EORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPO~VERS ANY ATTORNEY OR THE PROTHONOTARY OR CLERK OF ANY COURT iN THE COMMONWEALTH OF FENNSYLVANIA, OR ELSEWHERE, TO APPEAR AT ANY TiME FOR BORROWER AF'I~R ~DEFAULT UNDER THIS NOTE, AND WITH OR WITHOUT COMFt. AINT FILED, AS OF ANY TERM, CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE PRINCIPAL BALANCE OF THIS NOTE, ALL ACCRUED INTEREST, LATE CHARGES, AND ANY AND ,N..L AMOUNTS EXPENDED OR ADVANCED BY LENDER RELATING TO ANY COLLATERAL SECURING THIS NOTE TOGETHER WITH INTEREST ON SUCH AMOUNTS, TOGETHER WITH COSTS OF SUiT, AND AN ATTORNEY'S COMMISSION OF TEN PERCENT (10~) OF THE UNPAID PRINCIPAL BALANCE AND ACCRUED INTEREST FOR COLLECTION, BUT IN ANY EVENT NOT LESS THAN FIVE HUNDRED DOLLARS ($5430) ON WHICH JUDGMENT OR JUDGMENTS ONE OR MORE E3(ECLITIONS 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 THtS NOTE TO CONFESS JLIOGMENT AGAINST SORROWER SHALL NOT BE EXHAUSTED BY ANY EXERCIBE 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. BORROVVER HEREBY WAIVES ANY RIGHT SORROWER MAY HAVE TO NOTICE OR TO A HEARING IN CONNECTION WITH ANY SUCH CONFESSION OF JUDGMENT, EXCEPT ANY NOTICE AND/OR HEARING REQUIRED UNDER APPI.ICABLE LAW WITH RESPECT TO EXECUTION OF THE JUDGMENT, AND STATES THAT EITHER A REPRESENTATIVE OF LENDER SPECIFICALLY CALLED THIS CONFESSION OF JUDGMENT PROVISION TO SORROWER'S ATTENTION OR BORROWER HAS SEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL. PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD AL]. THE PROVISIONS OF THIS NOTE, INC~JDING THE VARIABLE II~lr.~EST RATE PROVISIONS. BORROWER AGREES TO ~ I":t,iMS OF THE NOTE AND ACKNOVI~ ~"'~GES RECEIFT OF A COMFt. ETED COPY OF THE NOTE. THIS NOTE HA~ BEEN SIGNED AND SEN. ED BY THE UNDERSIGNED. BORROWER: =il t:Va~l L. I~..OSER, General Partner TOMMY L. BLOSER, General Par~er PNC BANK, NATIONAL ASSOCIATION, Plaintiff TOMMY L. BLOSER AND CY~gHIA L. BLOSER, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : NO. CIVIL ACTION - LAW VERIFICATION I, Eric Krimmel, Vice President, for PNC Bank, National Association, being authorized to do so on behalf of PNC Bank, National Association, hereby verify that the statements made in the foregoing pleading are true and correct to the best of my information, knowledge and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unswom falsification to authorities. PNC BANK, NATIONAL ASSOCIATION Eric Krimmel Vice President Tommy Guaranty PNC BANK, NATIONAL ASSOCIATION Plaintiff TOMMY L. BLOSERANDCYNTHIAL. BLOSER, De~nd~ts : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA : : NO. 02-2085 : : CIVIL ACTION - LAW PRAECIPE TO THE PROTHONOTARY: Please mark the judgment entered in the above-captioned action satisfied. Date: September Respectfully submitted, SAIDIS, SHUFI~, FLOWER & LINDSAY Camp Hill, PA 17011 (717) 737-3405 Attorney for Plaintiff