CONFESSION OF JUDGMENT

EXPLANATION AND DISCLOSURE OF RIGHTS AND WAIVERS

 ____________________________, a Pennsylvania limited liability company., having an address of ____________________________ (hereinafter referred to as the “Borrower”), as an inducement to ________________________, having an address of _______________________________ (“Lender”), to make a loan (the “Loan”) to the Borrower, evidenced by a Note in an aggregate amount of ________________________________ No/100 Dollars ($__________.00), secured by, among other things, a Mortgage and Security Agreement of even date herewith (the “Mortgage”), hereby certify, warrant, represent and covenant, for itself as follows:

1.         As an additional and material inducement to the Bank's making the Loan, the Bank has required, and the Borrower has agreed to give to the Bank, warrants of attorney to confess judgment against the Borrower to collect payments due under the Confession Documents.  This document is executed and delivered to the Bank by the Borrower to demonstrate that the Borrower knowingly, intelligently and voluntarily recognizes and waives the right to notice and hearing prior to the entry of the confessed judgment and such other rights that the Borrower may have, if confessions of judgment were not included in the Confession Documents.

2.         The Borrower clearly and specifically acknowledges, understands and agrees that:

            (a)            THE WARRANTS OF ATTORNEY TO CONFESS JUDGMENT CONTAINED IN THE CONFESSION DOCUMENTS ARE PROVISIONS PERMITTING THE BANK TO ENTER JUDGMENT BY CONFESSION AGAINST THE BORROWER.

            (b)            THE CONFESSION DOCUMENTS ALSO CONTAIN PROVISIONS PERMITTING THE BANK TO FORECLOSE UPON, ATTACH, LEVY OR TAKE POSSESSION OR OTHERWISE SEIZE PROPERTY OF THE BORROWER, IN FULL OR PARTIAL PAYMENT OF THE JUDGMENT, WITHOUT EITHER NOTICE OR A HEARING.

            (c)            BY SIGNING THE CONFESSION DOCUMENTS CONTAINING THE CONFESSION OF JUDGMENT CLAUSES, THE BORROWER WILL GIVE UP THE RIGHT TO ANY NOTICE OR OPPORTUNITY TO BE HEARD PRIOR TO THE ENTRY OF A CONFESSED JUDGMENT ON THE RECORDS OF THE COURT.

            (d)            BY SIGNING THE CONFESSION DOCUMENTS CONTAINING THE CONFESSION OF JUDGMENT CLAUSES, THE BORROWER AGREES THAT THE BANK CAN ENTER JUDGMENT AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT.

            (e)            BY SIGNING THE CONFESSION DOCUMENTS CONTAINING THE CONFESSION OF JUDGMENT CLAUSES, THE BORROWER WILL SUBJECT CERTAIN OF THE BORROWER’S ASSETS TO EXECUTION (AND SHERIFF'S SALE), AFTER THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT.

            (f)            BY SIGNING THE CONFESSION DOCUMENTS CONTAINING THE CONFESSION OF JUDGMENT CLAUSES, THE BORROWER WILL NOT BE ABLE TO CHALLENGE SUCH JUDGMENT, SHOULD THE BANK ENTER IT EXCEPT BY PROCEEDING TO OPEN OR STRIKE THE JUDGMENT; AND SUCH A PROCEEDING MAY RESULT IN ATTORNEY'S FEES AND COSTS WHICH THE BORROWER MAY HAVE TO PAY.

3.         THE BORROWER ACKNOWLEDGES, KNOWS AND UNDERSTANDS THAT IT IS THE CONFESSION OF JUDGMENT CLAUSE(S) IN THE CONFESSION DOCUMENTS WHICH GIVE(S) THE BANK THE RIGHTS ENUMERATED IN SUBPARAGRAPHS (a) THROUGH (f) OF PARAGRAPH 2 ABOVE.  IF THE BORROWER DOES NOT SIGN THE CONFESSION DOCUMENTS WHICH CONTAIN CONFESSION OF JUDGMENT CLAUSE(S), THE BORROWER UNDERSTANDS THAT THE BORROWER WOULD HAVE THE FOLLOWING RIGHTS:

            (a)            THE RIGHT TO HAVE NOTICE AND AN OPPORTUNITY TO BE HEARD PRIOR TO ENTRY OF JUDGMENT.

            (b)            THE RIGHT TO HAVE THE BANK BEAR THE BURDEN OF PROVING A DEFAULT BEFORE THE BORROWER'S PROPERTY COULD BE EXPOSED TO EXECUTION ON THE JUDGMENT.

            (c)            THE RIGHT TO AVOID THE ADDITIONAL EXPENSE OF ATTORNEY'S FEES AND COSTS INCIDENT TO THE OPENING OR STRIKING OFF OF A CONFESSED JUDGMENT.

4.         The BORROWER, with full and complete understanding of these rights, NEVERTHELESS FREELY, KNOWINGLY, INTELLIGENTLY AND VOLUNTARILY CHOOSES TO SIGN THE CONFESSION DOCUMENTS WITH THE INTENTION BEING TO GIVE UP, WAIVE, RELINQUISH, AND ABANDON THE BORROWER’S KNOWN RIGHTS (AS DESCRIBED IN PARAGRAPH 3 ABOVE) AND TO BE SUBJECT TO THE CIRCUMSTANCES DESCRIBED IN PARAGRAPH 2 ABOVE.

5.         The Borrower acknowledges, represents and warrants to the Bank that:

            (a)            The Borrower’s annual income exceeds $10,000.

            (b)            The Borrower has received copies of this disclosure document at the time of signing.

(c)               The Confession Documents are obligations arising out of a business transaction.

            IN WITNESS WHEREOF, the Borrower, intending to be legally bound, has executed this disclosure in duplicate as of the _____ day of __________, 2005.  The Borrower has read this entire form and fully understands its contents.

BORROWER:

WITNESS:                                                                                                                                                   

____________________________                        By:  ____________________________

                                                                                     , President

WITNESS:

____________________________

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