HomeMy WebLinkAbout06-6638
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
No. 0<" -1d..3P (!/UL '-r ~
Vs.
THOMAS SCOTT PEDERSEN,
NOTICE TO DEFEND
You have been sued in Court. If you wish to defend against the claims set forth in
the following pages, you must take action within twenty (20) days after this Document
and Notice are served by entering a written appearance personally or by attorney and
filing in writing with the Court your defenses or objections to the claims set forth against
you. You are warned that if you fail to do so the case may proceed without you and a
judgment may be entered against you by the Court without further notice for any money
claimed in the Documents or for any other claim or relief requested by the Plaintiff. YOU
MAY LOSE MONEY OR PROPERTY OR OTHER RIGHTS IMPORT ANT TO YOU.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, PA 17013
Telephone: 717-299-3166
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
No. Dl- -1.l,31 C!.;u~L '-r~
vs.
THOMAS SCOTT PEDERSEN,
Defendant
COMPLAINT
1. The PLAINTIFF is CITIZENS BANK OF PENNSYLVANIA, a state banking
institution, organized and existing under the laws of the Commonwealth of Pennsylvania, with
one of its principal places of business at 525 William Penn Place, Suite 2720, Pittsburgh,
Allegheny County, Commonwealth of Pennsylvania 15219, and hereinafter sometimes referred to
as "Bank" and! or "Plaintiff."
2. The DEFENDANT is THOMAS SCOTT PEDERSEN, an adult male
individual, residing at 9 Todd Road, Carlisle, Cumberland County, Commonwealth of
Pennsylvania 17319, and hereinafter sometimes referred to as "Defendant".
3. On or about January 29,2004, Bank loaned to Obventio, Inc. and extended to
Obventio, Inc. a credit facility in the sum of $75,000.00.
4. To evidence the loan and credit facility of $75,000.00 made and extended by
Plaintiff to Obventio, Inc. as set forth in Averment 3 hereof, on or about January 29,2004,
Obventio, Inc., as obligor, executed a "Business Credit Line Agreement" in favor of Bank, as
obligee.
5. Attached hereto, marked Exhibit "A" and incorporated herein by reference is a
true and correct copy of the "Business Credit Line Agreement" for the face amount of $75,000.00
executed by Obventio, Inc., as obligor, in favor of Plaintiff, as obligee, on January 24,2004.
6. Obventio, Inc. is a Pennsylvania Close Corporation, organized and existing under
the laws of the Commonwealth of Pennsylvania, with its principal place of business at 3109
North Front Street, Harrisburg, Dauphin County, Commonwealth of Pennsylvania 17110.
7. Defendant owns 100% of the stock in Obventio, Inc.
8. To secure and to collateralize the obligations of Obventio, Inc. to Bank under the
"Business Credit Line Agreement" (Exhibit "A"), on or about January 29,2004, Defendant in
writing guarantied to Bank the amounts due by and liability of Obventio, Inc. to Bank under the
"Business Credit Line Agreement" (Exhibit "A").
9. Defendant's guaranty is set forth in the body of the "Business Credit Line
Agreement" (Exhibit "A") entitled "Personal Guaranty".
10. Neither the "Business Credit Line Agreement" (Exhibit "A") nor the "Personal
Guaranty" set forth therein has been assigned, transferred or negotiated by Plaintiff and Plaintiff
is the holder of the "Business Credit Line Agreement" (Exhibit "A") and "Personal Guaranty" set
forth therein and Plaintiff is the real party in interest.
11. The "Business Credit Line Agreement" (Exhibit "A") is payable on demand.
12. However, until demand is made on account of the "Business Credit Line
Agreement" (Exhibit "A"), Obventio, Inc. was obligated to pay to Bank interest on a monthly
basis.
13. Obventio, Inc. has not made regular monthly payments of interest under the
"Business Credit Line Agreement" (Exhibit "A") for the months of March, April, May, June,
July, August, September and October of 2006.
14. The failure of Obventio, Inc. to make regular monthly payments of interest for
the months of March, April, May, June, July, August, September and October of2006 constitutes
a default under the "Business Credit Line Agreement" (Exhibit "A").
15. As a result of the default by Obventio, Inc. as set forth in Averment 14 hereof
and pursuant to Bank's rights under the "Business Credit Line Agreement" (Exhibit "A"), on
October 27,2006, Bank issued a demand letter to Obventio, Inc. demanding payment in full of all
principal, interest, late charges and costs due on account of the "Business Credit Line Agreement"
(Exhibit "A").
16. Attached hereto marked Exhibit "B" and incorporated herein by reference is the
written demand dated October 27,2006 sent to Obventio, Inc.
17. Obventio, Inc. did not pay Bank in full all principal, interest, late charges and
costs due on the "Business Credit Line Agreement" (Exhibit "A").
18. In addition, on October 27,2006, Bank also issued a demand for payment upon
Defendant under Defendant's "Personal Guaranty" set forth in the body of the "Business Credit
Line Agreement" (Exhibit "A").
19. Attached hereto marked Exhibit "B" and incorporated herein by reference is the
written demand dated October 27, 2005 sent to Defendant.
20. Defendant did not pay Bank in full all principal, interest, late charges and costs
due and owing by Defendant to Bank on account of Defendant's "Personal Guaranty" set forth in
the body ofthe "Business Credit Line Agreement" (Exhibit "A").
21. As of November 6, 2006, the following amounts are owed by Obventio, Inc. to
Bank on account of the "Business Credit Line Agreement" (Exhibit "A") and thus owed by
Defendant under Defendant's "Personal Guaranty" set forth in the body of the "Business Credit
Line Agreement" (Exhibit "A"):
2
A. Principal
B. Interest
C. Late Charges
D. Total
$ 74,999.43
$ 4,500.97
$ 190.37
$79,690.77
22. In addition to the amounts due as set forth in Averment 21, pursuant to the
"Personal Guaranty" set forth in the body of the "Business Credit Line Agreement" (Exhibit
"A"), Bank is entitled to reasonable attorney's fees. Bank requests legal fees of $5,000.00.
21. The principal balance due on the "Business Credit Line Agreement" (Exhibit
"A"), being $74,999.43, is accruing interest at the rate of 9.25.5% with the per diem amount
being $19.27 and Defendant is obligated for that interest under Defendant's "Personal Guaranty"
set forth in the body of the "Business Credit Line Agreement" (Exhibit "A").
WHEREFORE, the Plaintiff, Citizens Bank of Pennsylvania, prays for judgment in
favor of Citizens Bank of Pennsylvania and against the Defendant, THOMAS SCOTT
PEDERSEN, for the following amounts along with costs of suit:
A. Principal $74,999.43
B. Interest $ 4,500.97
C. Late Charges $ 190.37
D. Legal Fees $ 5,000.00
E. Total $84,690.77
Plus interest since the date of this Complaint until Judgment at the per diem amount of
$19.27.
Dated: November 14,2006
ck F. Ream
Kain, Brown erts LLP
119 East Market Street
York, PA 17401
LD. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-mail: JckReam@aol.com
Attorney for the Plaintiff
CITIZENS BANK OF
PENNSYLVANIA
3
COMMONWEALTH OF PENNSYLVANIA
SS:
COUNTY OF ALLEGHENY
Before me, a Notary Public, in and for the said
County and State, personally appeared JUDI A. GIMIGILIANO,
who, being duly sworn according to law, doth depose and say
that she is a Banking Officer of CITIZENS BANK OF
PENNSYLVANIA, a state banking institution organized and
existing
under
the
laws
of
the
Commonwealth
of
Pennsylvania, and that as such officer is authorized to
make this Affidavit on behalf of CITIZENS BANK OF
PENNSYLVANIA and that the facts set forth in the foregoing
document are true and correct to the best of her knowledge,
information and belief.
CITIZENS BANK OF PENNSYLVANIA
Sworn and Subscribed
Q,h
(SEAL)
before me this ~ tJl) day
of
NO\1EMeER
, 2006.
I1fJJiJuLJJd1.~
Notary Public
COMMONWEALTH OF PENNSYLVANIA
Notarial Seal
Andrea L Quattrone, Notary Public
City' Of Pittsburgh, Allegheny County
My Commission Expires Oct. 13, 2009
Member, Pennsylvania Association of Notaries
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EXHIBIT "A"
:*:.1. .fC:n..:,._. F'1~r~f:.-
?
.. CITIZENS BANK
LENDER:
BUSINESS CREDIT LINE AGREEMENT
o
CItizens Bank of Rhode Island
1 Clllzens Plaza
Providence, RI 02903
O Citizens Bank New Hampshire
875 Elm Street
Manchesler, NH 03101
r.;'1x Clllzens Bank of Pennsylvania
I..ll:.I 1735 Market Street
Philadelphia, PA 19103
O Clllzens Bank of Connecticut
63 Eugene O'Neill Drive
New london, CT 06320
o CItizens Bank of Massachusetts
28 Slate Straal
Boston, MA 02109
O Clllzens Bank
919 North Market Street, Suite 200
Wilmington, DE 19801
o If checked here, this loan is guaranteed by the Small Business Administration ("SBA").
This Business Credit Line Agreement (the" Agreement") sets forth the terms of a credit line ("Credit Line") established under a letter
("Approval Leiter") from the Lender ("Lender", "we", "us" or "our") identified above to an applicant (the "Borrower" or "you"). The
Borrower has submitted an application ("Application") for the Credit Line which incorporates the terms of this Agreement by reference to
evidence the Obligation to repay sums advanced under the Credit Lint. Certain person(s) ("Guarantor") have, or may in the future,
guaranty obligations under this Agreement. The Borrower and any Guarantor irrevocably accept the terms of the Approval Letter and this
Agreement by the Borrower taking an advance ("Advance") under the Credit Line. The words "you" and "yours" mean the Borrower, and
each of them if more than onc, and IIwe," "our," and "us" mean the Lender. The tenn 11Loan Documents" means the Application, this
Agreement, the Approval Letter, any guaranty and any other documents executed in connection with the Credit Line.
1. Credit Limit We have establisl1ed a Credit Line for your short-term borrowing needs with a limit (the 'Credit Limit') sel forth in the
Approval Letter. The Credit Limit is the maximum principal amount you may l1ave outstanding under tile Credit Line at any time. We
reserve the right, in our sole discretion, to reduce your Credit Limit at teoninate your Credit Line as provided below.
2. Purpose. This Credit Line is for business purposes only, and may not be used for consumer, household or other personal purposes.
3. Loans. (a) We agree 10 make Advances 10 you until the occurrence of an Event of Default (as defined in Paragraph 17, below) or
notice oftermination of the Credit Line; provided that the aggregate principal amount outstanding does not exceed the Credit Limit. You
agree 10 repay the Advances in accordance with this Agreement.
(b) Letters of Credit: If there is no Default under this Agreement, Borrower shall be entitled to request that the Lender issue
commercial or standby letters of credit under this Agreement (subject to the limitations described above) pursuant to the following
conditions:
(i) Issuance of Letters of Credit From time to time on any business day occuning prior to Default or demand hereunder, the
Borrower may request the issuance of commercial or standby letters of credit (each a "Letter of Credit' and collectively, 'Letters of
Credit") for ils own account in respect of obligations of tbe Borrower io stated face amounts (each sucb stated face amount not to be less
than $1,000) requested by the Borrower on such day with an expiry date not laterlban the earlier of one year from the dal~ nfsuch
issuance; or extend Ibe expiry dale of an existing Letter of Credit previously issued hereunder to a date not later than one year from the
dale of such extension.
No issuance or extension of a Letter of Credil shall be made if, after giving effect therelo: (a) the aggregate face amount of all
outstanding Letters of Credit, I!l!!! (b) lbe aggregate outstanding principal amount of all outstanding advances under this Agreement ~
I!feater than (c) the principal emount of this Agreement.
To request Ibe issuance of a Letter of Credit (or lbe extension of an outstanding Letter of Credit) the Borrower shall hand deliver 10 tbe
Lender a notice requesting the issuance of a Letter of Credit, or identifYing the Letter of Credit 10 be extended, the date of issuance or
extension, Ibe date on which such Letter of Credit is to expire (which shall comply wilb the limitations set oulabove) as well as
submitting the appropriate letter of credit application on the Lender's standard fOIID.
By requesting the issuance of a Letter of Credit (or Ibe extension of an outstanding Letter of Credit), and by signing Ibe Lender's standard
form of letter of credit application, Borrower will be deemed 10 have agreed to the terms of this section of this Agreement (captinned
"LE'ITERS OF CREDIT").
Each Letter of Credit issued by the Lender shall be, in addition 10 the terms bereof, subject 10 Ibe lelIDS and conditions of any form of
letter of credit application or other agreement submitted or entered into by Ibe Borrower in connection with the issuance of any Letter of
Credit. In the event of any inconsistency between the terms and conditions of this Agreement, the Loan Agreement, and \he telIDS of any
fonn letter of credit application or other agreement submilled or enleted inlo by the Borrower in connection wilb the issuance of any
Letter of Credit, Ihe terms and condition of such letter of credit application or nther agreement shall control.
(II) Available Credit. The credit available under this Agreement shall be reduced by the amount of all issued and outstanding
Letters of Credit. In the event that the Lender pays any draft under any Letter of Credit, the Lender may cbarge the amount of such draft
as an advance under this Agreement, and such advance sball bear interest under and be subjecl to all of the other tenns o[this Agreement.
(III) Reimbursement If the Lender shall honor nr otherwise make any disbursement in respect of a Letter of Credit, the
Borrower shall reimburse the Lender in Ihe full priocipal amount of duch disbursement by paying 10 the Lender an amount equal to such
disbursement not later than Ibe close of business on the day sucb diabursement is made. Notwithstanding the foregoing. Ihe Borrower
may, subject to the terms and conditions of this Agreement, request Ibat such reimbursement payment be financed by means of an advance
hereunder. The Borrower acknowledges and agrees that Ibe Lender is under no obligation to so honor any such request and that unless
Ibe Borrnwer sball reimburse the Lender in full on the date such disbursement is made, the unpaid amount tbereof shall bear interest, for
each day from and including the date such un.reimbursed disbursement is made to but excluding the date Ihat the Borrower reimburses
such disbursement, at Ihe rate per annum then applicable to advances bereunder.
(Iv) Letter of Credit Fees. The Borrower agrees to pay to the Lender a Letter of Credit fee in an amount equal to the then
applicable interest rale for advances hereunder multiplied by the stated face amount of all Letters of Credit outstanding, such fee tn be
paid monthly in urears in accordance wilh the payment achedule set out below. The Borrower futther agrees to pay 10 the Lender (i) on
the date of (x) Ibe issuance of each Letter of Credit, (y) each increase in the stated face amount lberenf and (z) each extension (automatic
or otherwise) of the stated expiry date thereof, an issuance fee as provided for in the letter of credit application or other agreement
submitted or entered inlo by the Borrower in cOlUlection with such issuance, increase or extension. and (ii) all reasonable costs and
expenses incurred by the Lender in connection with such Letter of Credit.
(v) Cash Collalerallzation. If the Lender sball make demand hereunder or upon the occurrence of any Default, on the day
that the Borrower receives notices from the Lender demanding the deposit of cash collateral, the Bnrrower sball deposit in an account with
the Lender, in Ihe name of and for the benefit of the Lender, an amount in cash equal 10 Ibe aggregate amount of an Letters of Credit then
outstanding. Such deposit shall be held by the Lender as collateral for the payment and perfonnance of the obligations of the Borrower
with respect to such outstanding Letters of Credit, Ibis Agreement, the Loan Agreement, and any application or agreement submitted or
entered into by the Borrower in connection with the issuance of any Letter nf Credit. The Lender shan have exclutive dominion and
control, including lbe exclusive right of withdrawal. over such account. Other than interest earned on the investment of such deposits,
which such investments shall be at the option and sole discretion of the Lender and at Ibe Borrower's risk and expense, such deposils
shall not bear interest. Inlerest or profits, if any, on such investments shall accumulate in such actaunt. Moneys in such account sban be
applied by the Lender tn reimburse the Lender for Letter of Credit disbursemenls for whicb it has not been reimbursed and, to the extent
not so applied, sball be held for the satisfactlon of the reimbursement obligations of the Borrower for outstanding Lelters of Credit, or, if
demand has been made hereunder, be applied to satisfY other obligations of the Borrower under this Agreement If the Borrower is
required to provide an amount of cash collateral hereunder as a result of lbe occurrence of a Default, and lbe Lender shall refrain from
demanding payment hereunder, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within 3 business
days after all Defaults bave been cured or waived.
SBLOC - 06102
EXHIBIT "A"
Page 3
f) Paying Special Loan Checks in Excess of Vour Credit Limit. We do nol have to pay any special loan check that would
cause you to go over your Credit Limit. However, we may do so if we choose.
g) Paying Special Loan Checks After Terminallou. We will not pay any additional special loan checks presented to us for
payment after we send you notice of tennination of the Credit Line (as provided in Paragraph 14, below). If you tenninate the
Credit Line (as provided in Paragraph 14, below), you wiII be responsible for paying any additional Advances we make to pal' special
loan checks which are presented to us fnr payment before we have had a reasonable amount of time to implement your temiination notice.
Once we have implemented your tennination notice, we will not pay shy additional special loan checks presented to us for payment.
8. Debit. If you have so indicated on the Application and have completed an authorization on the fonn we provided to you, you authorize
us to debil your Citizens Bank business checking account with us for all sums (including, without limitation, principal, interest and fees)
payable under this Agreement and the Loan Documents; provided, however, that this provision shall not obligate us to create or allow any
overdraft, and further provided that such authority shall not relieve you of the obligation to assure that payments are made if there are not
sufficient good funds in your account. You understand that in exchange for your authorization to deduct your payments from your checking
account we have reduced the interest rale payable under this Agreement by one percent (1 %). If you close your checking account, if you
revoke your authorization to debit payments from your checking account, or if automatic payments are otherwise tenninated for any reason,
we have the right to increase Ihe Margin on your Credit Line by one percent (1%), without any prior notice to you. Unless payments are
made by automatic debit of your checking account, you must make payments to Lender at the address on the billing statement in lawful
cUlTency of the United States of America.
9. Billing Slatemenls. We wiII provide you each month with a billing statement showing the Payment Date, the minimum amount due on
the Payment Date, the cUlTent interest rate, any changes in the interest rate, any Advances, all payments made, the principal balance of all
Advances, and olher appropriate debits and credits. All entries in your account wiII be made in accordance with our customary accounting
practices in effect:from time 10 time. Any failure to record Advances, inlerest or other charges or any error in so recording shall not limit or
otherwise reduce your obligations to us under the Loan Documents. The balance shown on our most recent printout of your account, absenl
manifest error or omission, will be presumptive evidence of the amounts due and owing by you to us under this Agreement.
10. Default Inlerest. After the occulTence of an Event of Default (as defined in Paragraph 17, below), and whether before or after a
judgment is issued, we may impose, in our sole discretion, on all principal and other amounts outstanding and payable under the Loan
Documents, interest until paid in full at the rate (the "Default Rate") of four percent (4%) in excess of the rale described in Paragraph 5
(above). For business loans to non-corporation borrowers in amounts less than or equal to SIO,OOO, the total maximum allowable interest rate
is currently 18%.
11. Maximum Rate of Interest. All provisions of this Agreement are expressly subject to the condition that, in no evenl shall the amount
paid or agreed to be paid to us hereunder and deemed interest under applicable law exceed the maximum rate of interest allowed by
applicable law (Ibe "Moximum Allowable Rate"). In the event that fulfillment of any provision of this Agreement results in a delennination
that the interest raie hereunder is in excess of tbe Maximum Allowable Rate, the obligation to be fulfilled shall be reduced, as promptly as
practicable after such detennination is made, to eliminate such excess. Ally amount collected in excess of the Maximum Allowable Rate
prior to the date on whicb the obligation is reduced sball be applied to and deemed a prepayment of the unpaid principal balance of the
Advances.
12. Prepayment. You sball bave Ihe rigbt at any time and from time to time to prepay the unpaid principal balance of all Advances in
wbole or in part, wilhout premium or penalty, but with accrued interest and other charges to the day of such prepayment on the amount
prepaid.
13. Redudlon of Credil Line. We may reduce your Credit Limit at any time, in our sole discretion, by written notice to you. Any
reduction will be effective on the date specified in our notice (which may be the date of the notice). You will not be entitled to further
Advances if the a_gregate principal amount of all Advances outstanding would exceed the reduced Credit Limit. If the aggregate principal
amount of all Adv;ances outstanding exceeds the reduced Credit Limit on the effective date of the reduction, you must pay II sum sufficient to
reduce the outstanding principal balance to tbe reduced Credit Limit within thirty (30) days of the effective date of the reduction.
14. Termination. The Credit Line will terminale automatically upon the occurrence of an Event of Default (as defined in Paragraph 17,
below). We may terminate the Credit Line at any time, in our sole discretion, upon a date specified in written notice to you wbich date will
be at least thirty (30) days after the date of our notice. Yon will not be entitled 10 further Advances from the date of our notice, eVen though
termination is effactive at a future date. Upon tennination, all amounts owing under the Loan Documents shall be due and payable in full.
You may tenninate Ihe Credit Line at any time by written notice to us, provided there is no outstanding balance of principal, interest or other
charges.
15. Representallon and Warranlies. You represent and WllITllIlt that (i) all information contained in the Application or otherwise furnished
to us by you or any Ouaranlor is accurate and complete, (ii) if you are not an individual, you are duly organized, validly existing and in good
standing under the law of the state where you are organized, (iii) you have all material licenses, pennits and registrations needed to conduct
your business, (iv) the person(s) signing the Loan Documents is duly authorized, (v) the Loan Documents are valid, binding and enforceable
againsl you and any Guarantors, and (vi) you are under no legal restriction that would prevent borrowing under this Agreement.
16. Covenants. You covenant and agree (i) to keep the repreaentations and WllITllIlties contained in Paragrapb IS true at all times; (il) to
operate in accordance with all present and future laws and governmental regulations; (iii) to pay all your obligations wben due; (iv) to furnish
us with such information regarding your business and financial condition, and that of any Guarantors, as we may reasonably request; (v) to
allow us and our representatives to inspect your business operations arid books and records (and to make copies thereof) al reasonable times
upon reasonable notice; (vi) 10 maintain the current name of your company or business including but not limited to filing all necessary
reports with your jurisdiction of organization; and (vii) to refrain from any dissolution, consolidation, merger, saie of assets outside the
ordinary course, or change of ownership.
17. Events of Default. The occurrence of any of the following ("Event of Default") with respect to any BOlTower or any Guarantor shall
constitute a default under the Loan Documents:
(i) failure to pay when due any principal, interest or other charge relating to the Advances;
(in failure of any representation or warranty made in connection with any of the Loan Documents to be true when made;
(iii) delivery of any false or misleading certificate, financial statement or other written document in connection with the Advances;
(iv) failure to obselVe BIlY covenant contained in the Loan Documents;
(v) overdraft of any checking account with the Lender;
(vi) default under any agreement with the Lender (whether in the Loan Documents or otherwise);
(vii) notice from any Guarantor lerminating a guaranty, death of a Ouarantor, or assertion that a guaranty is not in full force and effect as to
all Advances;
(viii) suspension of business for B reason other than strike, casualty or other cause beyond your control;
(ix) commencement of any volunlary or involuntary proceeding under the Bankruplcy Code, appoinnnenl of a custodian (as defined in the
Bankruptcy Code), commencement of any other insolvency proceeding, or inability to pay debts generally as they become due;
(x) attachment or other judicial encumbrance of property;
(xi) occurrence of any material uninsured casualty loss;
Page 2
4. Fees. The followmg fees apply to your Credit Line:
a) Packaging Fee.
Upon acceptance of the Approval Letter, by requesting an Advance or otherwise, you may be required to pal' us a packagmg fee of
$250 (less any fee paid in connection with the Application) by means of an Advance under the Credit Line, whicb shall not be subject
to any refund upon termination.
b) Annual Fee.
On each yearly anniversary of the date of this Agreement, you shall pal' us an annual fee of $1 00 by means of an Advance under the
Credit Line which shall not be subject to any refund upon teIIDinatioo.
c) Late Fee,
If any payment is not made within fifteen (15) days after it is due, you may be required to pay us a late fee of (il $35, or (ii) five
peTcent (5%) of the overdue payment, whichever is greater.
d) Colleetion Fees.
If any payment is not made when due, you will pal' us any reasonable collection costs including, but not limited to, legal fees and
court costs.
5. Interest Rate. The outstanding principal balance of each Advance shall bear interest until paid at the Prime Rate plus a certain number of
percentage points (lhe "Margin"). The initial Margin is set forth in the Approval LetteT and does not exceed eight (8%) percent. 'Prime Rate"
shall mean the prime rate published in The Wall Street Journal as the prevailing prime rate at banks in the United States, or, if no longer
published, a similar rate deteIIDined from a conunercially accepted service chosen by the LendeT. The Prime Rate is a reference Tate and does
not necessarily represent the lowest or best rate charged to any of our customers. Interest rate adjustments under Ibis Agreement sball be
effective (i) with Tespect to the Prime Rate, on the same date that an adjustment is deteIIDined to have occurred, and (ii) with Tespect to any
Margin adjustmen~ on the date set forth in a notice sent 10 you. Any inteTesl rate adjustment shall be applicable to the entire balance
outstanding under this Agreement, as well as to all Advances made thereafter under this Agreement. For SBA guaranteed loans, the interest rate
will change on the first day of the calendar month following a change in the Prime Rate. This interest rate cbange will not occur more often
than once each month. Interest shall be computed daily on the basis of a 365-day yeaT (366 in any leap year) using the actual numbeT of days
elapsed. We may, within our sole discretion from time to time, but no earlier than one year from the date of the Approval Letter. increase or
decrease the Margin. Any cbange in the Margin shall be effective upon not less tIw1 thirty (30) days' notice to you. You may, at your option,
elect to teIIDinate this Agreement ratber than be bound by a change in the Margin. If you decide to tenninate this Agreement, you must give us
wrinen notice of YOUT decision to do so before the effective date of the change and you must pay all amounts outstanding under this Agreement
prior to the effective date of the change. In PA, for business loans to non-corporation borrowers in amounts less than or equal to SIO,OOO, the
maximum allowable interest rate is currently 18%.
6. Payments. This AgTeement is payable ON DEMAND. Until demand is made, you shall pal' the principal and interesl according to the
following schedule:
You must make regulaT monthly payments on the date ("Payment Date") set forth in your billing statement. The first Payment Date will be one
montb after tbe date of the Approval Letter and monthly on the same day of the month theTeafter. On each Payment Date, you must pay tbe
following amounts:
lil If the box at the beginning of this paragraph is checked, your Tegular monthly payments wiu be equal to the swn of (a) accrued
interest and any other charges posted to the account at Ihe close of the billing cycle. plus (h) any amount wbich is past due, plus
(c) any amount by which the outstanding principal balance of the Loans exceeds the CTedit Limit (except as aresult ofa reduction by us of your
Credit Limit). This minimum montbly payment will not reduce the principal that is outstanding on the Credit Line, and will result in greater
expenses over the life of the CTedit Line Account. In addition to the minimum monthly payment set forth above, you agTee that at least once
dUTing each 12 consecutive calendar month period (beginning on the date of the Approval Letter) you will reduce, for a period 000 consecutive
days, the principal balance oftbe Credit Line to not more than fifty percent (50%) of the highest outstanding principal balance on the Credit
Line for the pTeceding 12 calendar months.
Unless the box at the begilming of the preceding paragraph bas been checked, your regular monthly payment will be equal to the swn of (a)
accrued interest and any other charges posted to the account at the close of the billing cycle, plus (b) principal in the minimum amount of (i)
S200.00, or (ii) two percent (2'10) of the outstanding principal balance at the close of the billing cycle, whicbever is greateT (however, the
minimum payment will never exceed the entire &mOWlt outstanding), plus (c) any amount which is past due, plus (d) any amount by wbich the
outstanding principal balance of the Loans exceeds the Credit Limit (except as a result of a reduction by us of your Credit Limit).
You may make additional repayments of principal at any time, but theseldditional payments will not release you from the obligation to make
payments on the next Payment Date. Upon the occurrence of an Event of Default (as defined in Paragraph 17, below) or termination of the
Credit Line, all amounts outstanding under the Credit Line will be due and payable in full. However, in our sole discretion, we may allow you
to pay tbe amounts outstanding over a period of time ("Extension Agreemene'). We will indicate our appToval ofan Extension Agreement by a
notation on your billing statement or other written notice. Unless we indicate a different arrangement in written notice to you, an Extension
AgTeement will TequiTe monthly payments on the Payment Date equal to the sum of (a) accrued interest and otheT cbarges posted to your account
althe close of your billing cycle, plus (b) one thirty-sixth (I136th) of the principal balance outstanding when we lem1inated the Credit Line, plus
(c) any amount which is past due. All outstanding amounts subject to an Extension AgTeement will be due and payable in full if there is a
subsequent Event of Default. Any payment due on a Saturday, Sunday OT other banking holiday may be made on the fiTst day we are open after
"Ie date due, but interest and otber cbaTges shall be computed througb the date on which payment is actually made. All payments will be made
to Lender at the address on the billing statement in lawful currency of the United States of America.
If you pay us with a check or similar instrument that has notations OT instructions on or with the cbeck, you agree that (i) we may ignore those
notations and instructions except as expressly pTovided below; and (ii) we may credit any payment we Teceive to your CTedit Line (including a
check), and our crediting of that payment will not mean that we bave agreed to any notations or instructions on OT with that payment.
If you want to pay the outstanding balance of the Credit Line ill full with a check 'or similar instrument that bas such special notations or
instructions on it or with it, bur not close the Credit Line, you must send the payment (including special notations OT instructions) to Loan
Operations, Citizens Bank, I Citizens Drive, RivOl8ide, Rl 02915.
If you want to pay the Credit line in full with a cbeck or similar instrument that has such special notations or instructions on it or with it, and
c/ose the Credit Li"e, you must send the payment (including special notations or instructions) to Loan Operations, Citizens Bank, ] Citizens
Drive, Riverside, Rl 02915.
If payment in full is Teceived at any other address, (i) we may ignore any special notations or instructions, and (ii) OUT crediting any such check
or other instrument to the CTedit Line does not mean that we bave agreed to the special notations or instructions.
7. Requesting Advances. You may request an Advance by using the special loan cbecks we will give you. Tbe following rules apply to
your use of special loan checks.
a) Lost or Stolen Special LOlo Cheeks. You agree to tell us if speeialloan cheen are lost or stolen, or if you believe
someone is usipg your CTedit Line without your pennission. The fastest way 10 notify us of lost or stolen checks is by calling
us at 1-800-4-BUSINESS.
b) Forged Special Loan Cheeks. You agree that we do nol have to pay any of YOUT special loan cllecks if we believe Ihe
signature on the check has been forged, unless you tell us to.
c) Postdated Speeial LoBO Cbecks. If you date a special loan check with a date that is laler than the date on which you
actually wrote the special loan check, you agree that we may pay the special loan cbeck, even if we pay it or post it to your
Credit Line on a date which is earlier than the date on the special loan cheek.
d) Stopping Payment on a Special Loan Check. You can ask us to stop payment on any special loan check you ha~e written
that bas not been paid by calling us at the telephone number sbown on your statement. An oral stop payment order Will stay m
effect for fourteen (14) days, unless you confirm it in writing OT tell us to cancel it. You can confinn your stop payment
order by writing to us at the address shown on your statement. A written stop payment request will sta)' in effect for six (6)
months, unless you tell us to cancel it.
e) We Are Not Liable. We will not be liable if anyone fails to honor a special loan check wrillen by you.
Page 4
(xii) indictment for criminal activity; or
(xiii) any material adverse change in financial condition or business prospects which leads tbe Lender to believe that perfonnance of any
agreement or undertaking with the Lender is or may be substantially impaired,
18. Remedies. Upon the occurrence of an Event of Default (as defined in Paragraph 17, above),
(i) you shall have no further right to borrow under the Credit Line, (ii) all outstanding amounts under the Credit Line are due and payable,
(Iii) the outstanding amounts shall earn interest at the Default Rate, and (iv) we have the right to bring suit and exercise all rights and
remedies available under applicable law.
19. Cost of Collection. You agree to pay all expenses incurred by us in cOll1lection with the enforcement of our rights under the Loan
Documents to the extent allowed \>y law including, but not limited to, all appraisal, accounting and legal fees (including, but not limited
to. allocated costs of in-house counsel) and related disbursements.
20. Notices. All notices shall be in writing, mailed to or delivered to each party to the following addresses:
If to the Borrower or Guarantor, at the address set forth io the Application;
If to the Lender, Citizens Bank, Business Banking Center, One Citizens Drive, Riverside, Rl 02915;
Or such other address as any party may specify by prior notice to the other party.
21. Amendments and Waivers. The Loan Documents may be amended only by (a) writing signed by the Lender and the Borrower, or
(b) the Lender providing written notice to the Borrower at least thirty (30) days prior to the proposed effective date of the amendment. If
the Lender proposes an amendment upon thirty (30) days' notice, the amendment will become effective without the signalUre of the
Borrower unless the Borrower gives notice to the Lender prior to the proposed effective date that the Borrower does not accept the
amendment. No delay in exercising any right shall constitute a waiver or affect our right to act at a later time. No waiver or consent
shall be effective unless in writing signed by the party granting the waiver or consent. No waiver of an Event of Default (as described in
Paragrapb 17, above) or specific provision shall affect any other Event of Default or other provision. Any waiver shall be effective only
for the specific instance indicated in the waiver.
22. Joint and Several Obligations. If the Application is signed by more than ooe Borrower, all obligations of the Borrowers under the
Loan Documents are their joint and several obligations, and all references to the Borrower herein shall be deemed to refer to each of
them, either of them, and all of them.
23. Cumulative Remedies; Setoff. The rights and remedies provided the Lender in this Agreement and in the other Loan Documents
shall be cumulalive and shall be in addition to and not in derogation of any rights or remedies provided the Lender in any other documen~
instrument or agreement or under applicable law and may be exercised concurrently or successively. The Borrower grants the Lender the
right of setoff against aU deposits and property of the Borrower now or hereafter in the possession of the Lender without regard to the
adequacy of coUateral.
24. Entire Agreement; Asslenment; Succeuors and Assigns. The Loan Documents supersede all prior agreements between the parties
with respect to the Credit Line, whether oral or written. The Loan Documents constitute the entire agreement between the parties with
respect to the Credil Line. Borrower shall not be entitled to assign any ofits rigbts or obligations under the Loan Documents without
Lender's prior written consent. Lender shaU be entitled 10 assign some or aU of its rights under tbe Loan Documents without notice to or
consent of Borrower. This Agreement and the Loan Documents sbaU be binding upon and inure to the benefit of Borrower, Lender and
their respective successors, assigns, trustees, receivers, administrators, personal representatives, legatees and devisees.
25. Lender Liability. The Lender sbaU not be liable for any loss sustained by any party resulting from any action, omiSlion or failure
to act by the Lender, whether with respect to the exercise or enforcement of the Lender's rights onemedies under the Loan Documents,
or otberwise, unless sucb loss is caused by the actual willful misconduct of tbe Lender conducted in bad faith. IN NO EVENT SHALL
THE LENDER EVER BE LIABLE FOR CONSEQUENTIAL OR PUNITIVE DAMAGES, ANY RIGHT OR CLAIM TIfERETO BEING
EXPRESSLY AND UNCONDITIONALL Y WANED.
26. Indemnification. Tbe Borrower hereby indemnifies and agrees to prolect, defend and hold bonnless the Lender and the Lender's
directors, officers, employees, agents, attorneys and sharebolders from and against any and all losses, damages, expenses or liabilities of
any kind or nature and from any suits, claims or demands, including all reasonable counsel fees incurred in investigating, evaluating or
defending such claim, suffered by any of them and caused by, relating to, arising out of, resulring from, or in any way coll1le.ted with this
Agreement, the Application, tbe other Loan Documents and any transaction contemplated herein or therein including, but not limited to,
claims based upon any act or failure to act by the Lender. If the Borrower &baIl have knowledge or any claim or liability hereby
indemnified agains~ it shall promptly give written notice thereof to the Lender. The Borrower acknowledges that this covenant shall
survive payment of aU Advances.
27. WAIVER OF TRIAL BY JURY. THE LENDER, THE BORROWER AND ANY GUARANTOR HEREBY VOLUNTARILY,
INTENTIONALLY AND IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING HEREAFI'ER
INSTITUTED BY OR AGAINST THE LENDER, THE BORROWER OR ANY GUARANTOR OF ANY KIND, IN ANY COURT,
ARISING OUT OF nus AGREEMENT, THE APPLICATION, THE OTHER LOAN DOCUMENTS OR ANY llELATED
DOCUMENTS.
28. WAIVER OF l'REJUDGMENT HEARING. THE BORROWER AND ANY GUARANTOR (i) ACKNOWLEDGE THAT THIS
AGREEMENT IS APART OF A COMMERCIAL TRANSACITON AND (ii) TO THE EXTENT PERMfITED BY ANY STATE OR
FEDERAL LAW, WANE THE RIGHT THE BORROWER OR ANY GUARANTOR MAY HAVE TO PRIOR NOTICE OF AND A
PRIOR COURT HEARING ON THE RIGHT OF ANY HOLDER OF TInS AGREEMENT TO ANY REMEDY OR COMBINATION
OF REMEDIES THAT ENABLES SAID HOLDER, BY WAY OF A ITACHMENT, FOllElGN A IT ACHMENT, GARNlSHMENT,
llEPLEVIN, OR OTHER PREJUDGMENT PROCESS TO DEPRIVE THE BORROWER OR ANY GUARANTOR OF PROPERTY, AT
ANY TIME, PRIOR TO FINAL JUDGMENT IN ANY LITIGATION INSTITUTED IN CONNECTION WITH THIS AGREEMENT,
AND FURTHER WAIVES ANY REQUIREMENT OF LENDER TO POST A BOND OR OTHER SECURITY IN CONNEctION
WITH SUCH REMEDY.
29. Consent to Jurisdiction. The Borrower and any Guarantor consent to the personal jurisdiction in any court of the stale in which the
main office of the Lender is located.
30. Waiver of Personal Service. The Borrower and any Guarantor waive personal service of process in coll1lecrion with any action or
proceeding commenced by the Lender in connection with the Loan Documents, agreeing that such service may be made by certified mail
to the address specified in this Agreemenl for notices.
31. Descriptive Headings; Context. The captions in this Agreement are for convenience of reference only and shall not define or limit
any provision. Whenever the context requires, reference in this Agreement to the neuter gender shall include the masculine IlIld/or
feminine gender, ami the singular number shall include the plural and in each case, vice verss.
32. Survival. Thi~ Agreement and all covenants, agreements, representations and warranties made herein and in any certitjcates
delivered pursuant hereto shall survive any making by the Lender of any Advances and the execution and delivery of any Loall Documents
and shall continue in' full force and effect until this Agreement is terminated and all obligations of the Borrower to the Lender Bre paid in
full.
33. Cbolce of Law. This Agreement and all other Loan Documents arc entered into under and sball be construed, inlelpreted, enforced
and governed by the laws of the slate in which the Lender's main office is located.
34. MaiBe Disclosqre. If the address for the Borrower is Maine, the following notice applies: Notice. Under Maine law, no promise,
contract or agreement to lend money, extend credit, forbear from collection of a debt or make any other accommodation for the repayment
of a debt for more thim $250,000 may be enforced in court against Lender, unless the promise, contract or agreement is in wriling IIld
signed by Lender. -,\ccordingly, Borrower cannot enforce any oral promise to extend credit unless it is contained in a written ~ocument
signed by Lender, nqr can any change, forbearance, or other accommodation relating to any extension of credit by Lender to Borrower be
enforced, unless it is in writing signed by Lender.
35. Seal. This Agreement is made as an instrument under seal.
KAIN, BROWN & ROBERTS LLP
ATTORNEYS AT LAW
-.J ~CK F REAM II
'STEVEN M. CARR
-'-UDREY E. WOLOSHIN"
~~VIN W. MARKEY
-"OfiN N ELLIOTT
119 EAST MARKET STREET
YORK, PENNSYLVANIA 17401-1278
D. COUNSEL
(717) 843-8968 EXT. 35
FAX (717) 846-6676
E-MAIL: jckream@aol.com
.JACK F. REAM II
THOMAS E. COCHRAN 184.-1860
COCHRAN" HAY 1860-1883
COCHRAN" WILLIAMS 1883-1912
COCfiRAN, WILLIAMS" KAIN 1912-1930
GEORGE HAY KAIN 1930-1937
KAIN, KAIN &. KAIN 1937-1958
KAIN, KAIN " 8ROWN 1958.1966
IF>i08ERT~, 8ROWN
OE::l)WARD C. ROBERTS
- lLM IN TA.XATION
October 27,2006
Revised October 30, 2006
Mr. Thomas Scott Pedersen, President
Obventio, Inc.
3109 NOlih Front Street
HalTisburg, PAl 711 0
Mr. Thomas Scott Pedersen
9 Todd Road
Carlisle,PA 17013
In Re: Citizens Bank of Pennsylvania
"Business Credit Line Agreement" for $75,000.00 dated January 29, 2004
Loan #8102104-0101
Dear Mr. Shearer:
I have been retained by Citizens BanIe of Pennsylvania ("Bank") with regards to
the obligation and liability of Obventio, Inc. ("Bon"ower") to Bank arising under a
"Business Credit Line Agreement" for $75,000.00 dated January 29,2004, Loan
#8049963-0101 ("Loan"), which loan Mr. Thomas Scott Pederson ("Guarantor") has
personally guarantied by his Guaranty dated January 29,2004 ("Guaranty"). I have been
authorized and directed by the Bank to transmit this conuuunication to you as guarantor
and as President of BOlTower.
Pursuant to the tenus and provisions of the "Business Credit Line Agreement" for
$75,000.00 dated January 29,2004, Loan #8049963-0101, Borrower was to make
monthly payments of interest on accollilt of the outstanding principal due and owing on
the "Business Credit Line Agreement" for $75,000.00 dated January 29,2004, Loan
#8049963-0101. Borrower has not made the monthly payments of interest for the months
of March, April, May, June, July, August, September and October of2006. The failure to
make the monthly payments of interest for the months of March, Aplil, May, June, July,
August, September and October 2006 constitutes a default by Borrower under the
"Business Credit Line Agreement" for $75,000.00 dated January 29,2004, Loan
#8049963-0101.
EXHIBIT "B"
Mr. Thomas Scott Pedersen, President
Obventio, Inc.
Mr. Thomas Scott Pedersen
October 30, 2006
Page 2
As a result of the default by BOlTower, Bank hereby:
1. Declares BOlTower and Guarantor in default of the Loan;
2. Declares all principal owed by BOlTower to Bank under the
"Business Credit Line Agreement" for $75,000.00 dated January 29,2004, Loan
#8049963-0101, and by Guarantor under the Guaranty be now immediately due and
payable in full; and
3. Demands payment in full by BOlTower and Guarantor of all
principal, interest and late charges due Banlc under the "Business Credit Line Agreement"
for $75,000.00 dated January 29,2004, Loan #8049963-0101, and under the Guaranty
ON OR BEFORE NOVEMBER 3, 2006.
As ofthe date of this letter, the following amounts are owed by Borrower and
Guarantor on account ofthe Loan and on account of the Guaranty:
Principal
Interest
Late Charges
Legal Fees
Total
$ 74,999.43
$ 4,308.29
$ 190.37
$ 750.00
$ 80,248.09
In addition, the principal balance of $80,248.09 is accruing interest at the per
diem an10unt of$19.27 per day.
In the event you do not pay to the Bank. the sum of $80,248.09plus interest at the
per diem date of $19.27 for each day after October 27, 2006 on or before NOVEMBER
6, 2006, then Bank will immediately begin legal action to collect these amounts. In the
event Bank initiates legal action to collect these an10unts, you will be obligated for all
reasonable legal fees incurred by Bank.
Nothing herein constitutes a waiver of any and/or all of Bank' s rights and
remedies all of which lights and remedies are expressly reserved for benefit ofBanlc.
Very truly yours,
Jack F. Ream
cc: Ms. Judi A. Gimigliano
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CERTIFIED MA1Lm RECEIPT
(Domestic Mail Only; No Insurance Coverage Provided)
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Return Receipt Fee
(Endorsement Required)
Restricted Delivery Fee
(Endorsement Required) ~
Total Postage 8. Fees l $
Sent To
Mr. Thomas Scott Pedersen, Presiaant
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CERTIFIED MALL. RECEIPT
(Domestic Mail Only; No Insurance Coverage provided)
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. Complete items 1, 2, and 3. Also complete
item 4 if Restricted Delivery is desired.
. Print your name and address on the reverse
so that we can return the card to you.
. Attach this card to the back of the mailpiece,
or on the front if space permits.
1. Article Addressed to:
Mr. Thomas Scott Pedersen,
Obventio, Inc.
3109 North Front Street
Harrisburg, PA 17110
2
D. Is elivery address different from item 1?
If YES, enter delivery address below:
nt
3. Service Type
D Certified Mail
D Registered
D Insured Mail
D Express Mail
D Return Receipt for Merchandise
DC.O.D.
4. Restricted Delivery? (Extra Fee)
DYes
7005 2570 0000 2063 4256
PS Form 3811, February 2004
Domestic Return Receipt
.. .
· Complete items 1, 2, a.nd 3. Also complete
item 4 if Restricted Delivery is desired.
· Print your name and address on th8 reverse
so that we can return the card to you.
· Attach this card to the back of the mail piece,
or on the front if space permits.
1. Article Addressed to:
.'1r. Thomas SCott Pedersen
9 Todd Road
Carlisle, PA 17013
.
102595-02-M-1540 ;
COMPCETE r>IIS ,ECT/ON ON OELlVEfiY
.a Agent
---D Addressee
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4. Restricted Delivery? (Extra Fee) 0 Yes
PS Form 3811, February 2004
7005 2570 0000 2063 4270
Domestic Return Receipt
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
NOTICE OF INTENTION TO ENTER JUDGMENT
PURSUANT TO RULE 237.5 OF
PENNSYL VANIA RULES OF CIVIL PROCEDURE
TO: Thomas Scott Pedersen
9 Todd Road
Carlisle, P A 17013
DATE OF NOTICE: December 28, 2006
IMPORT ANT NOTICE
YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION
REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACTION WITHIN TEN (10)
DAYS FROM THE DATE OF TillS NOTICE, JUDGMENT MAY BE ENTERED
AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY
OR OTHER IMPORT ANT RIGHTS. YOU SHOULD TAKE TillS NOTICE TO A
LAWYER AT ONCE. IF YOU DO NOT HAVE ALA WYER OR CANNOT AFFORD
ONE, GO TO TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET
CARLISLE, P A. 17013
1-717-299-3166
KAIN, BROWN & ROBERTS LLP
(~A"
BY: Jaca:--;::~
119 East Market Street
York, Pa. 17401
I.D. 10241
Phone 1-717-843-8968
.... ,
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
I hereby certify that this Notice was mailed to the Defendant on the 28th day of
December, 2006. (One copy to be filed with the Prothonotary of Cumberland County)
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
CERTIFICATE OF SERVICE OF TEN (10) DAY NOTICE
1, Jack F. Ream, Esquire, attorney for Plaintiff, Citizens Bank of Pennsylvania in the
above captioned matter, hereby certify that on the 28 day of December, 2006, I caused a copy of
the "Ten (10) Day Notice," which is attached hereto, marked Exhibit "A" and incorporated herein
by reference hereto, to be served upon the following party by United States Mail, regular mailing
and certified mail, return receipt requested, postage prepaid, by depositing the "Ten (10) Day
Notice" in the United States Post Office in York, Pennsylvania, addressed to the following party
at the :Following address:
Thomas Scott Pedersen
9 Todd Road
Carlisle, P A 17013
Certified Mail No. 7005 2570 0000 2063 4379
DATED: December 28,2006
KAIN, BROWN & ROBERTS LLP
B~~
Jack . earn, Esquire
119 East Market Street
York,Pa.17401
I.D. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckRearn@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DNISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Tenn
vs.
THOMAS SCOTT PEDERSEN,
Defendant
NOTICE OF INTENTION TO ENTER JUDGMENT
PURSUANT TO RULE 237.5 OF
PENNslvLV ANIA RULES OF CIVIL PROCEDURE
TO: Thomas Scott Pedersen
9 Todd Road
Carlisle, P A 17013
DATE OF NOTICE: December 28, 2006
IMPORTANT NOTICE
YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION
REQUIRED OF YOU IN TIDS CASE. UNLESS YOU ACTION WITIDN TEN (10)
DAYS FROM THE DATE OF TIDS NOTICE, JUDGMENT MAY BE ENTERED
AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY
OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE TillS NOTICE TO A
LAWYER AT ONCE. IF YOU DO NOT HA VE'A LAWYER OR CANNOT AFFORD
ONE, GO TO TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU
CAN GET LEGAL HELPt
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET
CARLISLE, PA. 17013
1-717-299-3166
KAIN, BROWN & ROBERTS LLP
BY:
EXHIBIT "A"
. ~'"
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
I bereby certify that this Notice was mailed to the Defendant on the 28th day of
December, 2006. (One copy to be filed with the Prothonotary of Cumberland County)
..~-...,...
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
TO: PROTHONOTARY OF CUMBERLAND COUNTY, PENNSYL VANIA
PRAECIPE TO ENTER JUDGMENT
ENTER JUDGMENT in the above captioned matter for failure to enter an appearance
and/or to file a response pleading against the DEFENDANT, THOMAS SCOTT PEDERSEN,
and in favor ofthe PLAINTIFF, CITIZENS BANK OF PENNSYLVANIA, for:
1. The sum of $84,690.77 with interest from November 6, 2006 to
January 10,2007 of$1,214.01 for a total judgment amount of$85,904.78.
It is certified that a written notice of the intention to file this praecipe was mailed to the
defendant against whom judgment is to be entered and to his attorney of record, if any, after the
default occurred and at least 10 days prior to the date ofthe filing of this praecipe.
DATED: January 10,2007
REAM, CARR, MARKEY & WOLOSHIN LLP
(formerly KAIN, BROWN & ROBERTS LLP)
BY:
~
Jack F. Ream, Esquire
119 East Market Street
York, Pa 17401
LD.10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
CERTIFICATE OF RESIDENCE
PURSUANT TO PA R.C.P. 236
I, Jack F. Ream, Esquire, attorney of record for the Plaintiff, Citizens Bank of
Pennsylvania, in the above captioned matter hereby certify the following:
I. Name and Address and Residence of Plaintiff:
Citizens Bank of Pennsylvania
525 William Penn Place
Suite 2720
Pittsburgh, PA 15219-1727
2. Name and Last Known Address of Defendant:
Thomas Scott Pedersen
9 Todd Road
Carlisle, PAl 7013
DATED: January 10, 2007
Ream, Carr, Markey & Woloshin LLP
(formerly Known as Kain, Brown & Roberts LLP)
BVCd7
ac F. Ream, Esquire
119 East Market Street
York, PA 17401
J.D. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
NON-MILITARY AFFIDAVIT
Commonwealth of Pennsylvania
ss:
County of York
Before me, th" flu111ul1utary/Notary Public of York County, Pennsylvania, personally appeared
JACK F. REAM, ESQUIRE, attorney for Plaintiff, Citizens Bank of Pennsylvania, in the above
entitled case, who being duly sworn or affirmed according to law deposes and says that the
Defendant:
(1) is not in the military service of the United States of American;
(2) is a resident of Cumberland County, Pennsylvania;
(3) resides at resides at 9 Todd Road, Carlisle, Pa.
(4) is employed by Orventio, Inc.
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a. v/Notarv Pu lc
NOTAmAL SEAl.
UNOA M. WOLF. NOTARY PUBlIC
CITY OF YORK, YORK COUNTY
Mf COMMISSION EXPIRES MAY 22.2007
~~/r
Jack F. Ream, Esquire
Ream, Carr, Markey & Woloshin LLP
(formerly Kain, Brown & Roberts LLP)
119 East Market Street
York, PA 17401
Attorney ID #10241
Telephone: 1-717-843-8968
Fax: 1-717-846-6676
E-Mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
Sworn and Subscribed before
me this 10TH day Of January, 2007
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYL VANIA,
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant
NOTICE OF THE ENTRY OF JUDGMENT
DATE: January 10,2007
TO: Thomas Scott Pedersen
9 Todd Road
Carlisle, P A 17013
(X) NOTICE IS HEREBY GIVEN THAT A JUDGMENT IN THE ABOVE
CAPTIONED MATTER HAS BEEN ENTERED AGAINST YOU IN THE
AMOUNT OF $85,904.78.
Prothonotary of Cumberland County
Civil Division
'Iqjol
By:
If you have any questions regarding this Notice, please contact the attorney for the filing
party:
Jack F. Ream, Esquire
Kain, Brown & Roberts, LLP
119 East Market Street
York, Pa. 17401
I.D. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
(This Notice is given in accordance with Pa. R.c.P. 236)
NOTICE SENT TO: Thomas Scott Pedersen
9 Todd Road
Carlisle, P A 17013
2
SHERIFF'S RETURN - REGULAR
CASE NO: 2006-06638 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
CITIZENS BANK OF PENNSYLVANIA
VS
PEDERSEN THOMAS SCOTT
SHAWN HARRISON
, Sheriff or Deputy Sheriff of
Cumberland County, Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE
was served upon
PEDERSEN THOMAS SCOTT
the
DEFENDANT
, at 1655:00 HOURS, on the 7th day of December, 2006
at 9 TODD ROAD
CARLISLE, PA 17013
by handing to
DONNA PEDERSEN, WIFE
a true and attested copy of COMPLAINT & NOTICE
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Postage
Surcharge
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,0
\,11 .
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18.00
4.40
.39
10.00
.00
32.79
So Answers:
r~~~
R. Thomas Kline
12/12/2006
KAIN BROWN
Sworn and Subscibed to
By:
ROBi(jJ) ~
~eputy Sheriff
before me this
day
of
A.D.
.
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENSYLVANIA
Plaintiff
No. 06-6638 Civil Term
vs.
THOMAS SCOTT PEDERSEN
Defendant
PETITION TO OPEN OR STRIKE OFF JUDGMENT
TO THE HONORABLE COURT:
The following is respectfully represented:
1. Petitioner is Thomas S. Pedersen, an adult individual residing at 3109 North Front
Street, Harrisburg, PA 17110.
2. Petitioner has certified that he did not receive the notice of suit and that the Notice of
Entry of Judgment pursuant to Pa. R.C.P. 236 was the first notice received by the him
on or about January 16, 2007.
3. Petitioner's lack of notice of the above captioned case prevented him from protecting his
rights and denied it due process of law.
4. As a result of this failure to receive notice, Petitioner has been unable to assert his
rights.
5. Petitioner has a desire and intention to enter a defense in the above matter.
WHEREFORE, the Petitioner, Thomas S. Pedersen., hereby requests this honorable Court
to Open and Strike Off the Judgment entered in this matter so that an answer may be
entered and hearing on the merits may be granted.
Respectfully submitted,
~\
Verification
The foregoing Petitioner, hereby verify, subject to the penalties of 18 Pa.C.S. Section
4904, Unsworn Falsification to Authorities, that the facts set forth in the foregoing
petition that are within his knowledge are true, correct and complete to the best of my
knowledge, information and belief.
Date#:r
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Thomas S. Pedersen .---...
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENSYLVANIA
Plaintiff
No. 06-6638 Civil Term
Y5.
THOMAS SCOTT PEDERSEN
Defendant
Certification of Service
I, Anthony B. Andrezeski, Esq., Attorney for Defendant, Thomas Scott Pedersen,
verify that I sent a copy of a Praecipe to Enter Appearance and Petition to Open or
Strike Off Judgment, to Jack F. Ream, Esq., Attorney for Plaintiff, 119 E. Market Street,
York, PA 17401, via First Class Mail this
30th day of January, 2007.
{/ilL;. ~~
Anthony . AndrezeZ, sq.
I. D. 88995
317 Erford Road
Camp Hill, PA 17011
(717) 433-4191
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNNSYL VANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENSYLVANIA
Plaintiff
No. 06-6638 Civil Term
Vs.
THOMAS SCOTT PEDERSEN
Defendant
TO: PROTHONOTARY OF CUMBERLAND COUNTY, PENNSYLVANIA
PRAECIPE TO ENTER APPEARANCE
Attorney Anthony B. Andrezeski hereby files this Motion to enter an appearance
on behalf of Defendant, Thomas Scott Pedersen, in the above-captioned case. This
Entry of Appearance is effective this date.
Dated: January 26, 2007
Respectfully submitted,
Anthony B. Andre ski, Esq.
I. D. 88995
317 Erford Road
Camp Hill, PA 17011
(717) 433-4191
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CITIZENS BANK OF PENNSYLVANIA : IN THE COURT OF COMMON PLEAS OF
PLAINTIFF : CUMBERLAND COUNTY, PENNSYLVANIA
V.
THOMAS SCOTT PEDERSEN,
DEFENDANT
: NO. 06-6638 CIVIL
ORDER OF COURT
AND NOW, this 8th day of February, 2007, upon consideration of the Petition to
Open or Strike Off Judgment, IT IS HEREBY ORDERED AND DIRECTED that:
1. A Rule is issued upon the Plaintiff to show cause why the relief requested
should not be granted;
2. The Plaintiff will file an answer on or before February 28, 2007;
3. If no answer to the Rule to Show cause is filed by the required date, the relief
requested by Defendant shall be granted upon the Court's receipt of a Motion requesting
Rule be made Absolute. If the Plaintiff files an answer to this Rule to Show Cause, and
the answer raises disputed issues of material fact, an evidentiary hearing will then be
scheduled. The Prothonotary is directed to forward said Answer to this Court.
By the Court,
,,~
J.
M. L. Ebert, Jr.,
Jack F. Ream, Esquire
Attorney for Plaintiff
Anthony B. Andrezeski, Esquire
Attorney for Defendant
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND, PENNSYLVANIA
CIVIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff-Respondent
No. 06-6638-Civil Term
Vs.
THOMAS SCOTT PEDERSEN,
Defendant -Petitioner
CERTIFICATE OF SERVICE OF
ANSWER OF PLAINTIFF-RESPONDENT, CITIZENS BANK
OF PENSYLVANIA, TO PETITION TO OPEN OR STRIKE OFF JUDGMENT
I, Jack F. Ream, Esquire, attorney of reeord for the Plaintiff-Respondent, hereby
certify that on February 21,2007, I caused a copy of the Answer of Plaintiff-
Respondent, Citizens Bank of Pennsylvania, to Petition to Open or Strike Off Judgment,
which has been filed in the above captioned matter and incorporated herein by
reference hereto, to be served upon Anthony B. Andrezeski, Esquire, attorney for
Defendant-Petitioner, Obventio, Inc., by certified mail, return receipt requested, at the
following address:
Anthony B. Andrezeski, Esquire
317 Erford Road
Camp Hill, PA 17011
Certified Mail No. 7005 2570 0000 2007 5257
Jack F. Ream, Esquir
Ream, Carr, Markey &oloshin LLP
(formerly Kain, Brown & Roberts LLP)
119 East Market Street
York, PA 17401
Attorney 1.0. #10241
Telephone: (717) 843-8968
Fax: (717) 846-6676
e-mail: JcKReam@aol.com
Attorney for Plaintiff-Respondent
Citizens Bank of Pennsylvania
Dated: February 21, 2007
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IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYL VANIA
CNIL DIVISION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff-Respondent
No. 06-6638-Civil Term
vs.
THOMAS SCOTT PEDERSEN,
Defendant-Petitioner
ANSWER OF PLAINTIFF-RESPONDENT, CITIZENS BANK
OF PENNSYL VANIA, TO PETITION TO OPEN OR STRIKE OFF JUDGMENT
1. Admitted.
2. Denied.
a. An examination of the docket entries for 06638 Civil will demonstrate
the following:
On November 7, 2006 at 16.55 a.m. the Sheriff of Cumberland County,
Pennsylvania served a copy of the Complaint filed by Plaintiff-Respondent in the above
captioned matter personally upon the Defendant-Petitioner at his residence at 9 Todd Road,
Carlisle, Pennsylvania. Attached hereto, marked Exhibit "A" and incorporated herein by
reference thereto is a true and correct copy of the Sheriffs Return.
b. On December 28, 2006, Plaintiff-Petitioner dispatched to Defendant-
Petitioner by regular mail and by certified mail, return receipt requested, a NOTICE OF
INTENTION TO ENTER JUDGMENT PURSUANT TO RULE 237.5 OF PENNSYLVANIA
RULES OF CIVIL PROCEDURE addressed to Defendant-Petitioner at his residence at 9 Todd
Road, Carlisle, Pennsylvania. The certified mailing number is 7005 2570 0000 2063 4379 and
was received by Defendant-Petitioner. Attached hereto marked Exhibit "Boo and incorporated
herein by reference thereto is a true and correct copy of the NOTICE OF INTENTION TO
ENTER JUDGMENT PURSUANT TO RULE 237.5 OF PENNSYL VANIA RULES OF CIVIL
PROCEDURE and the Certified Mailing Receipt. As can be seen from Exhibit "Boo, the wife of
the Defendant-Petitioner signed the return receipt card.
3. Denied. Answer Averment 2 is incqrporated herein by reference thereto.
Defendant-Petitioner did not comply with Rule 237.3 (b) of Pennsylvania Rules of Civil
Procedure in that (1) the Petition to Open/Strike the Judgment was not filed within ten (10) days
of the entry of the judgment on the docket which was January 9,2007; and (2) no proposed
pleading in the form of an answer raising a meritorious defense was attached to the Petition to
Open/Strike. As the docket sheet in the above captioned matter will demonstrate, the
Prothonotary of Cumberland County, Pennsylvania sent notice of the judgment by default to
Defendant pursuant to Rule 236 of the Pennsylvania Rules of Civil Procedure on January 11,
2007.
4.
Denied. Answer Averments 2 and 3 are incorporated herein by reference thereto.
5.
thereto.
Denied. Answer Averments 2 and 23 are incorporated herein by reference
WHEREFORE, the Plaintiff-Respondent, Citizens Bank of Pennsylvania, prays Your
Honorable Court for an Order which denies the relief requested by the Defendant-Petitioner,
Thomas Scott Pedersen and refuse to open and/or strike the above captioned judgment.
DATED: February 21,2007
REAM, CARR, MARKEY & WOLOSHIN LLP
(Formerly Kain, Brown & Roberts LLP)
BY:./~
L.--JaetcF': Ream, EsqiBre
119 East Market Street
York, PA 17401
I.D.I0241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
2
VERIFICATION
I, Jack F. Ream, Esquire, verifies that: (1) he is the attorney for the Plaintiff-Respondent,
Citizens Bank of Pennsylvania; (2) the Plaintiff-Respondent, Citizens Bank of Pennsylvania,
cannot make this verification to the attached Answer because the Plaintiff-Respondent, Citizens
Bank of Pennsylvania, lacks sufficient information both as to the facts pled in the Petition to
Open/Strike and pled in the in the Answer of Citizens Bank of Pennsylvania; (3) Jack F Ream,
Esquire, while acting as attorney for Citizens Bank of Pennsylvania, in the lawsuit which is the
subject ofthis Answer of Citizens Bank of Pennsylvania, actively participated in the lawsuit and
thus has first hand knowledge of all facts pled in the Petition to Open/Strike and pled in the in the
Answer. Additionally, the Plaintiff~Respondent, Citizens Bank of Pennsylvania, cannot make
this verification to the attached Answer of Citizens Bank of Pennsylvania because the Citizens
Bank of Pennsylvania, lacks sufficient knowledge of the law which governs the issues and
matters raised in the Petition to Open/Strike.
Date: February 21,2007
~
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. Ream, Esquire ............
119 East Market Street
York, PA 17401
J.D. 10241
Phone 1-717-843-8968
Fax 1-717-846-6676
E-Mail JckReam@aol.com
Attorney for Plaintiff
Citizens Bank of Pennsylvania
EXHIBIT "A"
CASE NO: 2006-06638 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
CITIZENS ~ OF PENNSYLVANIA
vs
PEDERSEN THOMAS SCOTT
SHAWN HARRISON
, Sheriff or Deputy Sheriff of
CUmberland County, Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT .,NOTICE
PEDERSEN THOMAS SCOT!'
was served upon
the
DEFENDANT
I at 1655: 00 HOURS, on the .2!::.!! day of December , ~
at 9 TODD ROAD
CARLISLE, PA 17013
DONNA PEDERSEN, WIFE
a true and attested copy of COMPLAINT & NOTICE
by handing to
together with
and at the same time .di~ecting. ~ attention to the contents thereof.'
\
Sheriff's Costs:
DoCketing
Service
Postage
Surcharge
18.00
4.40
.39
10.00
.00
32.79
So Answers:
r~~
R. Thomas Kline
before me this
.Qay
12/12/2006
ItADl IlROlIN RI(JJl ,
By. ~ ~
f puty Sheriff
Sworn and Subscibed to
of
I
A.D.
EXHIBIT "A"
EXHIBIT "B"
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL DMSION: LAW
CITIZENS BANK OF PENNSYLVANIA,
Plaintiff
No. 06-6638 Civil Term
VS.
mOMAS SCOTT PEDERSEN,
Defendant
NOTICE OF INTENTION TO ENTER JUDGMENT
PURSUANT TO RULE 137.5 OF
PENNSYLVANIA RULES OF CIVJL PROCEDURE
TO: ThOlD88 Scott Pedersen
9 Todd Road
Carlisle, P A 17013
DATE OF NOTICE: December 28, 2006
IMPORTANT NOTICE
YOU ARE IN DEFAULT BECAUSE YOU BA VE FAILED TO TAKE ACfiON
REQUIRED OF YOU IN THIS CASE. UNLISS YOU ACl10N WITBlN TEN (10)
DAYS FROM THE DATE OF TBIS NOTICE, JUDGMENT MAY BE ENTElW>
AGAINST YOU WITHOUT A BEARING AND YOU MAY LOSE YOUR PROPERTY
OR OTBERIMPORTANT RIGHTS. YOU SHOULD TAD TBISNOna TO A
LA WYERAT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD
ONE, GO TO TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
CUMBF.lU.AND COUNTY BAR ASSOCIATION
32 SOUIll BEDFORD STREET
CARLISLE, P A. 17013
1-717-299-3166
KAIN, BROWN & ROBERTS LLP
BY: ~
J . ~.......e
119 East Market Street
York, Pa.17401
LD.I0241
Phone 1-717-843-8968
EXHIBIT "B"
Fax 1-717-846-64i76
E-md Jcklleul@aoLeom
Attoraey for Plaiatift'
CItizens BaBk ofPenuylvania
I hereby certify that this Notiee waslDailed to the Defeadut OB the 28tIt day of
December, 2006. (One copy to be filed with tft Protboaotary of Cmnberlud Couty)
U S PostZl\ Ser\JICP
CERTIFIED f'v1AIL RECEIPT
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Carlisle, PA 17013
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