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HomeMy WebLinkAbout96-03575 ~ , ~ ~ '" ~ % " ~ s . ~ H . \L ex: ~ I "/ " i '. L "" ~ - .- :) -- <:J \,... ...... \tl ('() I " <::r . ~, , I I County because the property in question is located in Berks County. In the within action, Plaintiff seeks remedies sounding in contract and in tort, Said remedies do not include the relief requested in the re91evin complaint filed in Berks County, c. Denied. The answer to subparagraph (b) above is incorporated herein by reference, 4. Admitted. WHEREFORE, Plaintiff respectfully requests that the Prelimi- nary Objections be denied. 5, It is admitted that the parties entered into the lease attached to the Preliminary Objections as Exhibit "B." The document speaks tor itself, 6, Admitted. 7. Denied. This averment is a conclusion of law to which no response is required, By way of further answer, the claims set forth in the complaint are not of a kind or nature intended to be subject to arbitration. By way of further answer, Defendants have waived any ability which they may have had to enforce arbitration. Defendants have wrongfully terminated the lease and are barred from enforcing the arbitration provision. 6. Admitted in part and denied in part. It is admitted that Plaintiff has not sought arbitration. It is denied that arbitra- tion is required, for the reasons set forth in the answer to paragraph 7 above. -.,II', I - , Exhibit A ,".t" '\ ~ " , ~ IU>>.iDJIl 11'*11 '11,_ . . 5. Defendant, Sukhvinder Jit Kaur, is an adult individual having an address of 8483 Lancaster Avenue, Second Floor Rear, Bethel, ~ennsylvania 19509, 6. Defendant, Jaspal Singh, is an adult individual having an address of 6463 Lancast-er Avenue, Second Floor Rear, Bethel, ~ennsylvania 19509. 7. ~laintiff owns and is entitled to the immediate possession of t,he personal property listed in Exhibit "A" t.o this Complaint, by reference made a part hereof, which to the best of ~laintiff's knowledge is located at the truck wash facility situated at 351 Midway Road, Bethel, Berks County, Pennsylvania 19507, 6. ~laintiff purchased or otherwise acquired said property, has not sold or otherwise transfen'ed ownership therein, and ownership in Plaintiff has been admitted by Defendants Talley Oil Corporation and James A. Talley, a/k/a James A. Talley, Sr" in writing, 9. The value of said property is $24,648.00, 10. On or about April 3, 1996, Defendant Talley Oil Corporation and James A, Talley, a/k/a James A. Talley, Sr" wrongfully and without Plaintiff's consent took said property from Plaintiff's possession at 351 Midway Road, Bethel, Berks County, Pennsylvania 19507, by locking Plaintiff out of the building where the property was kept and used. 11. Defendants, Talley Oil Corporation, have wrongfully \ detained said property since on or about April 3, 1996. 12. On or about May 8, 1996, ~laintiff demanded in writing that Defendants return said property to Plaintiff or pay Plaintiff the fair market value of said property, but Defendants refused and still refuse to comply with said demand. 13. On or about October 31, 1996, Defendants Talley Oil Corporation, James A. Talley, a/k/a James A. Talley, Sr, transferred possession of 351 Midway Road to Defendants Sukhvinder Jit Kaur and Jaspal Singh, 14. Defendants, Sukhvinder Jit Kaur and Jaspal Singh, are believed to be operating the truck wash facility and using some or all of Plaintiff's property in connection therewith. 15, At the time they began using ~laintiff's property, Defendants Sukhvinder Jit Kaur and Jaspal Singh, knew or should have known that Defendants Talley Oil Corporation, James A. Talley a/kl a James A. Talley, Sr., were not the owners of Plainti f f' s property, 16. Plaintiff believes that either Defendants Talley Oil Corporation, James A. Talley a/k/a James A. Talley, Sr" 01:' Defendants, Sukhvinder Jit Kaur and Jaspal Singh, or all of said Defendants claim possessory rights in and to Plaintiff's property. 17, On or about Februar, 3, 1997, Plaintiff demanded, in writing, that Defendants Sukh':inder Jit Kaul:' and Jaspal Singh, return Plai'ntifE's property to Plaintiff. ,-" " (!) Q,'-WJItI ,'lIOn ~llIl.mlQ' 'WI.\,oooI".'fll ., I /'It , I" . . ." . J".. ~,"'- BJW. r..sTAt~ LEASII +1, ~ this Lellll AB~"lllut (thh "LauI"), diltld thh day ot , L994 (Oau), by and betwBln TALLEY OIL COBl'ORATlON I~ES A. 'I.ULII, 11 bLI owa. ~i8bt <"Llndlo~d" o~ "Luao~"), Ind J~IlA!, INC., DBA MIDWAlC TRUCK \/AS8 ("Tlnant" o~ 'LI..el"). Tb. parti.. 1St.. '1 tollowlr PIU!2US1361 Landlord, ~11 con.iduation ot the teue paYIIICl1ts provided ill thh Aareement, llalllo to Tenant the truck-~alh buildlns situate 011 Midway aood (prox ~O' lut of I/IB axLt of I~78) in Betnel TO~l1lbi[l, Berks County, Pt.llll6yLval1ia 19~07. 6.Ld le4.. illcludes the Ilnd 011 which .Iid buLldLl1g is litultad tOlllthlr with adequate inarelS IlId Isre.1 thereto for cOllductLllg I truck lInd seni-traillr wllsh with perkillS areas at bertillstter noted in tebil AgrteMeDt (tbl "Premises") lOClted et l'lldwlY Road, Bethel, County ot Barko, Pellnsylvanil L9~07. Tb. l'Ult!ses erl part of thl raal eetatl dllcribad 1a. a deed recorded in tbo OfficI of tbe Rlcorder ot 01.01. ot Berka Co., Pennsylvania In Book _____, 1'18e______ and put of the red titHe dllScrlbed III a Clll:tdll luse w1th pU.'cbue opt1on la. tavor ot Landlord dated STOIlAGEI Tenant elldL be ellt!.tltd to Hare 1a. the truek Wasb and on the ~rem~les luch lteos of perlo1l31 propartl U I1re deenod oeceour)' to the operatlon ot a trucit Bcd traiLer wesll buelnc6D durlng tbe terOl of tnh Loan, LBndlol:d shall 1I0t b. llable for 10ls of or daco&o eo luon .tored Ltc<:lo. I I r [:, TEIlJtI Tae lease terla ollull COIDcence oc the date dectr1cal oervice haa been. code avallllble to tbo Pl:t1'll1sel, end ohall, ulllen the te:OI 1a extended, terDlLnata on tha sa~ date tin (to) ~earl thetel\feer, OPTIOH TO F.XTEtfil mlll Tenant has the rLght to extelld thLs Lease I:e;;ood June t9, 2003. Sho'Jld tenact fU:l, pertoro all thll terCls and conditLons of thls Leaae, Tellant C'.JJ., e:(~end the tar'll of this Lean for 8 pariod of flve (5) 1url, aod for three (3) addit10clll period a of the aaCle length, eacn to ccomeoca the da, foHol/Lng tbe Ixplra tioa. doto of tn.. i=ed1ately preceding term or e:-:tended terOl. All a! ~~c teroo elld provLalona of thLs Lelae sholl apply to the extended l~ese tetos, including adjustmect of relltal. Tecnnt may exerclse each optLon to extend thLs Lease tjl iivtna to Landlord I:otice cf Lts LtltenttoCl to do so tl . later tban ninety (90) da,. prior to tbe l.x?lratLon 0' the ia.LtLaL leasa tel (for tbe inltll\l optLon to e>eteod), or: the e><plratLon of tbe appltcsble leao. ter::> <for the &UbSB1uent options to e"te~,1), The Clotlce shall be Gc:!t by certifLed or regLGtured alaLl or nntionally recognLzed o"BmLght courl~r to La:ldlord at th~ a~drec. '" Det forth here In. LEASE PAYHENTSI Tenant shall pa, t~ LandLord the s~~ 0: S30,OOO.GO allnuaLL" to be paid at the rote ot H~OO.OO per oonth, beginning tbLny (30) cay. atter the begtnctllg ot the Lease term, or upon th.. uat" LarldL<>rd'. obl1g..ticc. und..,: psrasrapb 9 of the txhLbit of Additlonal ~rovl.ioaa nod CoodL:Lon, Bre c~rn[lLeted, whlcbeHr shall occur l3ter, wlth retltal bdna ndjuDr.ed annually accordlng to the ConGu::\er Price 10lle" fCJr i\..ll 1 teo,; for ALL Url:;.n ConSUClera, 1 " EXHIBIT ,/1 I I 'I , , " , - ""i~ published by the llureeu ~f Labol: St,atL'UcI of the 11.5. DepartOlent of Lllbor, Phl.la.-l/llllllngton-Irenton (l98Z'.84dlOO), but not to ex~ud 3% In Dny yur. Said payment I1djustlu8nt shall be rouaded to nurest $3.00. Such payments oueLl be ma~e to the LBndlord It 7734 Pera Dr1ve, Uarrisburg, Reansylvanla 17112, as rouy ~a chaaged from tlme to tlme by Laudlord. 1l01l-SUF1'ICIF.N1: FIJIlDSI Lessoe IM11 be cuurged $l5,00 for euch check that Ie returned to Losuor far lack of lufflclent fund.. 5ECIJB.ITY DEPOSITI At the titao of 11gulng of tills Lease, Tennut ohll11 pay to Landlord, In truH, tho IUm of $3,000,00 to be held Bud disbursed fnr Tenant: d~meBu to the Premi.e. (If BUy) OB 1'rov1dod by lllw. Sald SUm ahaLL be dapollted lnto a three (3) year Cert1f1cllto of DllpoBl.t and the lnterost sbalL accrua and be added to the pdncipal. I1pon moturity of thl Certificate of Dapoalt, 1f TenAnt io is coalplLanclI I/Ith the term~ of thlo LeoD8, the peinclpl\l 8nd acceued interest on the Certiflate of Depollt Oh,l11 be pulc\ ovel; tQ Tenant, and 0.0 further lecurlty depoalt Bhall be re~uired. l'OSSESSIOlil Tenant ohall b. entitled to p06SllSaiol1 at thu beginning ot the LUDe tcrUl, and obnll yield PosSQQsion to Landlord on the last dey o~ the term of extended torm of this Leao", os a?pl,icable, unlus otherlllse egeeed by both partie. in wrltln~. USE OF Ptu:.lUSESI IeWlnt DUly uu the ~rem10ee only for such uu Oa hu been agreed upon by the Lal1dlord l1;>.d Tenaut ill thlo AgreeClent Dndlor by such ameudmQnt tn said agreeltent as La negotlated by the parties, 'rhe Preill1s20 II1IlY be used for any other purpoDe only With the prior written coneent of Landlord, which consel1t shall not be unreasonably wictlheld. Tenant ohal1 notify Landlord of &0.1 antlclpated exteuded abseoce frolll the PreoLBes not lnter tban the firs t day of thl! extended ebsonca. ll:EKODtLING OIL SIB.I1C1'UiL\L Ilil'R.OVDmNTSI Except ao otherwise provided herein, Tenant shall be~e tbe obLlgation to conduct any constructlon or re~odeling (at tonant'l e.'1penoe) that may be required to use the PrealLses u speclfLed above, and llIay con3truct such !1xture~ uu th.. Predees (at 'reuant' 0 expense) that approprlately tacilltata Its u~e for such purposes. Such conBtructlon ahall be undertaken and auch tlxtu~e9 IlIO)/ be erected only Wlth the peior written consent of toe Landlord whlch shall not be unreasonably lJlthheld. At the end of tbe Lease term, Ienant shall bll entLtled to rereove (or ut tbe request of Landlord ohal1 remove) Buch flx,uraB, ond .hall rlstoro tho PrwniSI. ta lub.tantleLly tbe some condltion of the Prc~l.es Dt the cam~ence~ent of this Le.se. ,.' .tlAINIENANCl!: !eMne ohall have the obligatIo", to n:aintain the Pre~l3e9 in good repaLr at all tl~e3. TIlls obligatiO'" ahall inclu,lel the parklng lot. drivewnys, lIod sldewalks (inCluding anow and lce removlIl) marked 89 Tenant's responslblity on Exhibit D heeeto the sewer, lIater pipes, and othee matters related to plumblng the electricel Wiring I. " ',,. h 1:\ :.; I.. " i ::' '1'1 [. ~ " , , i n "',' ..~.I .1., ;.t.._ ..1" Ll1Ildlord II obHSlI.tion fOl: IUl.ntellonce aball I.uclud.. c..pltal tlpal.rs ll11d l~ptovementl, Illd III malntenance alld tepai!: I.te111 witb respect tOI tha roof, outaide walla, Bud other structural parts of th. building all parkina Ireaa, dr.iveways, access and sl.dewalks Ihowu al Landlord'l reapocsibility Oil Exhibit B hereto UIO !lea tin, aTstam all other itema of maintenauce not opecifl.cally deleglted to Tecaut uuder this T.eue ACCESS BY LA&DLOiD TO PREMISES: Subject to Tenant'e conseut (which shall not ba unreuonably withheld), Landlord aholl tlava the rLabt to lIuter. tbe PrllllLBea to IlIake illlpaotion!, provide cecesury servl.ces, or ehow the unit to prospacttve buyeu, U1ortgBsees, tec"o.ts or .:1I0rkUll, M provided by law, in tbe case of any emergeocy, Landlord may eo.tCt tbe PremLses witbout Tenlllt'e conaaut. UTlLITltS AND SERVICESI Tenant sball be l:espon.Lble for the followiug utilities IUld eervicea io. coo.nectioo. with tha hemius I - elecU'icity \/a ter end sella t' gll3 hellt1ns sarbllse IInd traib diepoaal j ani torial 5Qt'vLces telephoue .ervice \later pump Lncludio.g mainteDance thereto pollution insut'ance (if available lit reaaoll4ble cost) Bnd Gene~al Llllbility Insurance ot'dlnot'7 services aod maictellauce lI11d pay~ent of no~l billings and tor the Ibove listed items. - Te.naet acknowledges tnat Landlord has fully explaLned to Tenaet the utlUty ra.tes, chsrges IItld senl.cea which Tecact lIiLl be. required to pay (if I1nl) , other than those to be paid directly to tne utility company furlllahing the service. fltDPERTY r,NSOWlCE: Landlord ao.d Tuant shall each be respoc.sible to mal.o.tal.n appropria te LtlSurao.ce for thell: raspec tl VI;! Lo.tet'~sts ic the Pt:e.nioes and property locaeed on the Pt'emises. LIABUITY ltiSIJB.A1ICE: Tcceo.t ehall cuintdn pubUc lLabUit,Y lcsurance \lith per;oc.3l injury lL::\1ts Ot at least $100,000.00 foe iaJury to 00.8 persoll, and $500,000.00 to~ aoy one accidetlt, and II licit of at least $250,000.00 for damage to propeety. Tenact s!la.!.l deliver appropriate evidecce to Laudlord ao proof that adequate insurance is in force. Landlord snall have the rigbt to require that the Landlord receive notice of eoy ter~Lnatlon of auch lo.suracce policl.es. INDEHIlITY IUlGAIIJ)UlG USE OP PR.ElilSES: Tenant agrees to iede::\nLfy, hold hat:nless, and defend Landlo:d f~o" aod agl1lnct llny I1tld lo~ses, claims, 1LabUities, lied " " " " , . n. expense5, iucludLng te3sonabLa attotney fees, Lf Iny, which Landlord may luffet Ot incur in connectLon With TeU4nt'. u.~ ~f the Premiae.. DANC&.II.OUS &.:rUlll.S: Except for thou I113teriala and suppliea CtUOQILbly ucnaury 111 the cooduct of 'rOil/lOt' B busineu, TeCAut ahall not keQP 01: han 00 the PUIlLIU Iny artLcle or. thing of I dangurous, LnflBllllJlable, or oxplolLvl chllrlctet that might lubotllntielly increase the dlloger Ilf flre 00. tbe Pr.IULns, or that migbt bl cocsidered hazardous by a ralponaLb1e insurauea company, unless the pdor I/ri tten conoeot of Laodlard il obtaLnRd aod proof of adequate Lnaurllnce protection is provided by Tenant to Landlord. rAX!S: TaKes attrLbutable to the ptealLlu or the uaa of the Pr.emLses shall be allocated as follow. 1 a.al Estllte TaxiS ~ Lnndlord Ihall P3Y ell teal estate taxes end aase.s~nta fat the ~remises. Personal Texa. - Te~t Ihell pay ell of Tenant'o petsonal t~es, allpl01~$ae ~es fot TenAne's amplor.es Qnd aay otha~ chars.. which mey ba levied egeLnst the p~emilea and which ata attributable to Tenant's usa of the Pre:nia... D1~snucnOtl 08. CONOElINA'IlOli OF PIl..EHISES I If the PrenLsea ate part!.alll eel uOfed ln a unaer that prevelltl the cOllductloS of Tenant's use of the PrenLses Ln B norea1 business C4nne~, and if the dame,. is te~sonabLy r.epeirabla \litbin sixty days a~tet the occurrence of the desttUction, and it the cOSt of tapaLr 11 lass thau $25,000,00, Lao.dlord shall repnit thl Ptlmlses Bod leMa pay:neuts shall eba:. duties the period of the repait. HOl/over, if the damage io lIot rapaLnb1e Withia sixt7 doye, Ot if the COlt of rap.ir ls $25,000.00 o~ co~e, Ot if Landlord Lo ptevented froc tepairina tbe d.n~Ga by fotces beyond Landlord's conttol, or if the p~operty 10 cOlldeClne<l, thLs Leaa~ eMU terminate upon tweoty day. wrltten eotlce of such eveat O. coadltionD by eieher patty. liECIlANICS LInlS: Nei ther ~he Tenallt not aoyooe claimicg through the Tenant shell hBVB the tight tQ 1'Lle IIInchanlcs 11ens Ot a:lY 0 ther kind of 11en 011 the Pte:niaes and the !LUeg of thLs Lease constituees notLce that such liens are invalid, Purther, T~ea:lt aare~. to g~va actual Idvance notlce to any coatr.ctor., subcontractorl Qr suppHua of Goods, labor, or servicu tbat such liooe wLll aot bo v$lid. ' DJ::l'WL'tS: Teneet aheLl be La default of this Lea:c, if Teno:lot feUD to fulfill A:loY lease ob~igetioo ot ter~ bl which Teaant is bOllcd. Subject eo eal !overnina pro~.1sions of lAIl to the coateary, if reannt fall. to CUte 1"1 fLl10nclal obligation withle dxty (60) days or aay o;ho~ obligat~oa "!.th~a uicoty (90) days A!ter writee:. aotice of such default is provided by Lalldlotd to Teo.a.nt, ~endlotd IIsy taKe pcssession of the Pre~ises wlthcut further notice, Aad wLthout prejudLclog Laadlord's rLghts to demages, Ia the aLteraotiv'l, Landlord may elect to cure any defeult and the cost 0: such action shaLL be added to Tenant's fineaclel obllg'le10no und., ehis ~sa... T.n..~nt .hall pay all costs, dalll.:lalls. " ';1 !:I I:; I!' ~ : ~ i I': (I I., ., r: - -......."......... ,. . . and expanses suffered b1 Landlord b1 r.eason of TeDsnt'. dufaultS. CUtlUUtIVS B.1GIlTSI The rlgh\:1 of thu pattlu under thLa leaDt sr. cumulat.ive, lad aha11 not be construed all l~clulLvQ unluas otherwLse re~ulrld by law. GOVliNUIG LAWS I Thla LeaU shall ba conltrued In Ilccordstlca \11th the lawa of the Stat. at Pennsy1vanla. AJUlITa.Ar!ONI fo.ny controversy or c1sim rdatlDB \:0 tbia contract, Lnclud1111 the conltruatioDo or nppllcatioDo of this coo.tcac:t, will bo nttltd by bindlc.ll a:bltratioDo utlder tha rulu of the AClerlcl1n Arbltration o\s80cLI1tioc., and sa)' .l ud&alec.t arllDted by tha ubltr.tor(.) DJ.ay be llc.tered ill. aDY Court of proper jul;!.sdiction. ASSIGNABILITYfSUDLE1~IUGI ten4~t ~y Dot lubllA3C Bo.y interest 1n the Premises without the prlor written COo.l~t of Lao.dlord, which shall aot be unreasonably withheld. tenant .hall ba'/& the right to ullgo. tb. Lease to . corporation 111 which they hl1V1 . 100% ownersbip lnterast, provided uid corporat1on agrel2S to accept all obll.&l1tiotl.3 under tbt3 Leau. l]pon u1e of ths busl.nQu opllratQd by Tenant on the Peaoises, tenant Dba~l have tbe eight to assign tho LUDe to tb. purc:hasec if the puechasa.r agrees to acce~t all obHzut10lU uader thu LeBsll and il fiaaneially re,pon.~bLe. HOUCE; Notices under thia lu.se shall \lot be deei:\ed valid unlese given or I~rved in writing ond forwarded by alail, pestage peepaid, addressed as fo11oW81 LANDLOIl.D; tALLE~ OIL COR?OaAtION, JAMES A. tALLEY, P~ESIOE~~ 7H4 Fern Dri'lB aerrisbur&. Pennsylvania L7L12 tElIANt I J-DAR, I~C., DBA ~IOWA~ tRUCK WASH c/o BOl< 693 Ca~p Hill, Pennoylvania L7011 Sucb. addl:e6Us Clay be changed croc. tioe to title be either party by peovLd1D8 notlca aD Bllt forth above. Etn'IRE AGREEHENTfAl!.EllD!lENTI This Lease Allroement cOl1talns the oatire Ilgee~nt of the parties a::.d theee are 00 other peocUse.a or condLtion:! in ar.y other egrl1el1lent whuther oral or: weinen. Ihis Lesae tl4y be "odified or a:neoded in writing, if the writlng is atgned by the party obligated udner the aoondoont. SEVEB.AllILIT1: l! any portioo of this Le,1sD ahall be beld to ba lnvalld or unen!orceeble for an, reason, the ee"aining peovioioQJJ oh.111 continue to bQ valid and enforceable, If Q coun !inds Wt any provision of this Leaoe h In'nl1d or uaeaforcellblc, but that b, lilllitlng ouch proTL,ioQ, it would b..co..e , valid a.nd eQfo~c.able, tben 6ucb p~OVi6iol1 sball be doomed to bQ W~1ttel1, con.t~uad, and an!orced B. 10 limited. VAIVU,1 The taUu~B ot el.ther pa~ty to Qotorc. IIny provhl.onl ot thls Leue shall not bl1 construed u a wal.ver ot: J.1D1itaLiol1 ot thlt PArty'. tl.&l1t to subsequently utote. and compeL . trlet complience wlth evetT provhioll ot this LUn. ADDITIONAL PaOVISI05S, SEE FOLLOWING PAGES fOR EXHIBIT OF ADDITIONAL PROVISIONS AND CONDITIONS .UICU ARB HERED~ INCORPORATED B~ REFERENCE INTO THIS PARAGRAPH OP THO AGllEEHENT BEn/EIlU THE PARTltS AND AU; MADE A PART OP 'IIlE Et-;TIIl.E AGREEHtN'r . BETI/EEN Tl!.EM AS IS NOnD DY THEIR SIGllUiG OF Tllll E:(H!Bn' OF ADDITIONAL PROVISIONS AND CONDITIONS LAWLOB.D1 """1.0 ' , " .................. ,.,'''''.., . ....... ~\.......1v~. ........t,..' .........,' " )N..................... ~~.. POD /lJf,,,^ " ", . .....,~ ~!:.~l/. ,'...... -',-:,,1: :::0.._. ," "t"".._ '. ~~ :::~.~.., .. -.. = ..::.. ~.::. ~~ t ..., t. r., :.:.. iJ ::-li I< ...', '~SEA~' . ... ~ ......c;~1::. t' '''~~ .Sr;J~i'l',w'i ,....... 0' w"-;. ..I:'..: ......,_ ,":' ((I "".:. I sfii'~' ~.~...~' ............... ...,,~ " . ATTESTt --~ 4'4/ TENAliT I '~-/4/ BY: J07' &lllIllIT Oil ADDITIONAL PROVISIONS AND CONDITIONS The follovina additiOI14l provbloWl aad con.ditlolllS arc bereby agreed Upon by the partl.ca, 8.'S 10 8I.glll.f1ed by their haVing signed the.lll, and are IlI4de a part of the ll&reCllll:Ilt by incorporating tbell by reference lato the "ADDITIONAL paOVISIOHS" oectioll of the orl.ginal Agre~l!nt. 1. Iu the C'/eot at any delillqueney in pny:ncllt ~t other brencb of this Lease by Tenant, cr In tbe eVllot Landlord has a rell30tlllble bllel.! to bel1ave IllUllllt'! financial respoll3ibll1.t,. iB impaired, Landlord shall have a rigbt to request, Ind Tenlnt shall bave e duti' to provide to LQndlo~d, 0<1 0 quarterly baB1s, t1naacial. lo.!otlD.1tiotl fo.l.rly deOlOn3trlltin8 the incomc (or 10SB) and net worth of Tonallt. 2. T.he Leasee agrees to observe Bnd abIde by r,he pllrking Dt't'aagea8nta 80 ~ " " j~ :I~ ~' '" Or ~ i: I, lij II: .. " i- I, ..I ..:! , , agrJed upon br the partle3, and fur_her, tbB Leu3ee-renant aarRea there sbell b. no blocklng of th~ fueling eCCQB3 Dr~as nor ehall thera be any prolonsed parking ot Dny vehLclee on the pel/,.le8s. farking Lon3er than ol tbree (3) bour period by other tban D truck-"Mh employee/operator ehsll ba dUlIled au excessive fOI: purpoees of thie conditLon, 3. The Lessae ehall maintoLn tbe prem1ses ln a neat and ord~rl, cond1tion, includLng improve~ent9 thereto. 4. rhe Lesau IWl turn1sh to tbe LeUor a "rehase" froO! liab1Hty for enr Rnd all future cont~nLnation to the premLses which may sriee 8S a result of his occupancy. ,. The Lessee shell furnlsh tha Lusor w1th a copy of a certificst~ tvidencing tbal; the LUGe!! bas obta1ned thR 1rlSurane8 covengeQ required by the Leeee. - 6. The' Lusu IbaU eons'ul t with the LeHor on Dny proposed ehanies, RddLt10ns, and/or alteretions to tIle premises whLch ll101y atlect thll operations of tbe truck wash 0: the fualLnH facilLty. 7. 'Ills Lse3ea aa:aes to comply wall all eutrant and luture Dli:R rules and remulee10ns Bnd the Lessor a6reqa ae 00 ecse to the Lessor, to sssiat the Lessee in alle'/i8Cing sucll future rules and rogulations GO lIIay ba l'"poud by DEl'.. o. othBl: governOleotal IlSRncies a!hctlns tilR truclt wush. The Lessor will also graut the Leseda perll1i5sion to lIIaka Guch changes/alteraticns a3 a:e required tor compliance w1th rules aod r~8ulatione of Buch agenc1es. 8, Tha LessaR ssrees to paLnt exterior blOCk-work, to paint tha interior of the structure, 4lld will maintaLn the structure and exter10r premises in sccorcance With OSaA rules end regulations, both current and future. ~. Prior to deli'Ierl or poss<!ssloc of the Precises to Tallant, Landlord shall complete the toLlowin3: ,. , , a, Installation of new lock. on the truck wash structure t .' b, Repair of any structural dB-'lle.~e " ~., c. Provide appropriate heating end ventilatLon for the sald ~tructUtt d. ProvLde ad~quate water servLce to the head of the outlal; ~, -', L ,,' . e. Provide adequate electrLcal sarvLce to the structure , ~ r" i { t.~ t. r: i~: fi ~, " ~. ,. I! f, Repair d~rnage to the catualk g. Clean and repair, Lt neCuuaey, the exht~ng waste water FaCilLty 80 that it is in Ilood operatLns condition .. f. t, r " . If all o>t U1U forB&oLull 1tBIIl~ IIrB not completed by Au&ult 1, L991., Tenant IIbllLl hava th~ ~1ght to duclac. tbLa Leaso null aod void, iO. The Lessor egrees to work wit~ the Losse. io e cooperative effort to offer "fud nd Trucll. \lasb Specials" by ottULo8 "tuol dioClounte" to pllrtLu nUBdLns IInd doolrLns a jaiot .erVine. 11. Tha Lenoor and Luou are in a,rcement that each wUl pay oue-baLf (L/2) ot tho Cloat of rehebilitatioo aDd/or instollation of eXlotias and future Joiot advertiolng a1gllsl provided tllo coot to Lennee do eo lIot exceed $2,000.00 Lo aoy period of twu (2) yeoro. Tbe portieo .h:ll ohllre tbe COlt of lIlallltanance of lucb aisna, 12. Landlord ropresents end warrallto that no notice hOI boon SLvol1 to Landlord bf ony govullUlenl:.1.l authority or by any p"rnoo, claiDlina I1ny violation of, or requiriog cOlUpliallce vith, I1ny federal, state or 10cI1l Itstute, ordLoao<la, raBulation or otbe~ 'i:oquirel1leot of ,it, eoviroCJlleutal law, or demandina remediation or repoym~ot ur contribution lor any eDviron~ental CODta~ination Ot doma~ea attdbutable tbereto. Landlord further warrautl and te~re$euts tbat no lov.stiletloo, adDliniatratlve urder, cunsent order, lien, su~er ilen, or alreement, Htig.tion or aettleOlent with rellpect to any hIlznrdouB 6ubH6nce o~ any kind located on, about or under aoy pOrtion of tM Preroluu eXint, is peuding, proposed, threa teued .or antic Ipa ted, Landlord shnll d~telld, iodecn~fy and hold Tenant hncclaGo trom Bcd aBniont on, and ell llabLlity, damage, COGt Bnd expens8 Guttered or incurred 80 a rellult of any brEocb of aoy Cept'eBeotation or warranti' relat~lIg to an environmentnl coudLtion on thu Premiaes e.:is ting on the d3te ponseBsLol\ of the Premins Is doliveced to Teoaot. TH.E PARTIES HEREB:! SC:T TREla HANDS AtiD SEALS TO THESE; CONDITIONS AND PRO'ltS!ONS, SIGNI~ntlG .BElR INTENT TO BE LEGALLY BOUND AND AGREE THAT THESE PAGES BECO~E A PART or Ta~ cOmIERC!.AL LEASE AGREEMENT TO \lHICH TIiEy ARE ATrACIiED. ATrESTI flit) BY: (SEAL) ",- ...... N :,..... .' >'") \- '.-1 , . '-~ "---) ,;:; --. 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StlER1FF'~; IlETUrm - LllJT OF ClllJNTY CASE NOt 1996-03575 P COMMONWEALTH Or PENNSYLVANIAl COUNTY Or CUMBERLAND .J..:UIL.!lliL--_ V5, !hJLLEY OIL CORPORATION ET AL R. Thol~al!l Kline . Sheriff, who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named defendant, to witl TALLEY JAMES A A/K/A JAMES A. TALLEY. BR. but was unable to locate Him in his bailiwick. He therefore deputi:zed the sheriff of DAUPHIN County, Pennsylvania. to serve the within WRIT Or SUMIIONS ._____ On July 12th. 19% J this office was in receipt of Pennsylvania. the attached return from DAUPHIN County, Sheriff's CostSI Docketing Out of County Surcharge S'J anawer..'" I /' J -' ( ... .j.l' . ,"J 6.00 . 00 2.00 Fr.' 'l"hOmaS Kline, ::SherU1 eB.00 CLECKNER & rEAREN 07/12/1996 Sworn and sUbecribe~to this I 7 \':- day ofC. 1.1 1'3 '/L, A. D. before me Q.,u ~~"A ~ ' '''LLJtt!L.o...- , -... rothonotary ') ,- .. COtlltllONIYI':AI.'I'1I OF I'I-:NNA; COUNT\' OF llAlJPIIIN: Hlllo:lllFF'1i llWI'UHN NO, 96-3575 PAll I-: 522 ANI> NOW I July 8, IYI'l'IIIN Sunmons ...""-..... 11196 ,Ill 9r50 A ~I, SEllVlm '1'111,: UPON Talley Oil Corporation II\' PEIlSO:-':i\LL\' IIANlllNlJTO Judith A. Talley ( Wife and person in charge at time of service). A TIlLJE ATTEWl'Ell COP\, OF TilE OHllJINAJ. sUlTJ110ns ANll ~IAKIN(j I<NOIVN '1'0 Grantville, Pa her TilE CONTENTS TIlt-:Kt-:OI':\'I' Box 2240, R.D. #2 And Now: July 10, 1996 at 11:14AM served the within Swnmons upon James A. Talley a/k/a James A. Talley Sr. by personally handing to Nathan D. Talley ( Business Oevelopllent Officer and person in charge at time of service). A true attested copy of the original Sunmons and making known t<l them the contents thereof at 7734 Fern Dr., Harrisburg, Pa. ~.'h.I.'_'_"___"" " J J-BAR, INC., Plainti.ft IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW v. 'rALLEY OIL CORPORATION and JAMES A. TALLEY, also known as JAMES A. TALLEY, SR., Defendants NO. 96-3575 JURY TRIAL DEMANDED COMPLAINT AND NOW, comes the Plaintiff, J-Bar, Inc., by and through its attorneys, Cleckner and Fearen, and in support of the within , Complaint, avers as f.ollows, 1. Plaintiff is J-Bar, Inc., a corporation organized and existing under the laws of the State of Delaware, and having an office mailing addrE!SS at P. O. Box 693, Camp Hill, Cumberland County, Pennsylvania, 17011. 2, Defendant; Talley Oil Corporation is a corporation organized and existing pursuant to the laws of the Commonwealth of Pennsylvania, and having a registered offiCE! address of Box 2240, R, D. 2, Grantville, Pennsylvania, 17026, 3. Defendant James A. Talley, also known as James A. Talley, Sr., is an adult individual, president of Talley Oil Corporation, and has a residence address at 7794 Fern Drive, Harrisburg, Pennsylvania, 17112. At all time pertinent hereto, James A, Talley, also known as James A, Talley, Sr., acted both on his own behalf and on behalf of Talley Oil Corporation. 4. By Real Estate Lease dated July 6, 1994, the Defendants entered into a lease with Plaintiff by which Plaintiff, as tenant, . leased certain real estate and improvements in Bethel Township, Berks County, Pennsylvania, for the purpose of operating a truck wash facility, A copy of the said Real Estate Lease is attached hereto, made a part hereof, and labelled Exhibit "A", 5, Prior to entering into the Real Estate Lease dated July 6, 1994, Defendsnt James A, Talley represented to John W. Lane, president and sole shareholder of J - Bar, Inc., that there had been a previous truck wash business operating in the leased facility, and that Plaintiff could expect to wash an average of 20 tractor- trailer units per day, 6. Since Defendant James A, Talley had a fuel sales business in close proximity to the truck wash facility and served essential- ly the same customers, and had previously leased the facility for a truck wash business, Defendant James A. Talley was in a position to have reliable information with respect to the volume of business Plaintiff co~ld reasonably expect, 7, At the execution of the aforesaid Lease, Plaintiff paid to Defendant a security deposit in the amount of $3,000, 8. After taking possession of the leased property, Plain- tiff, at its sole cost and expense, completed the following improvements to the leased property, for a total cost in excess of $10,000.00: A. B. C, Painting Installation of linoleum floor Cleanup - 2 - D. Disposal of trash and refuse E, Installation of equipment F. Installation of signs 9. A.fter taking possession of the leased property, Plaint if f invested considerable time, effort and money into the leased property and the truck wash business, and operated it continuoulilly, as a going concern, through April 3, 1996. 10. In connection with establishing and operating the truck wash bus iness, Plaintiff borrowed the sum of $27,500,00 from Meridian Bank, and granted to Meridian Bank a perfected security interest in Plaintiff's personal property lcoated on the leased property, 11, Pursuant to paragraph 9 of the Exhibit of Additional Provisions and Conditions of the aforesaid Real ERtate Lease, Defendants agreed to undertake certain repairs and improvements prior to delivery of possession to Plaintiff, 12. Despite demand, Defendant failfld and refused to undertake the following repairs and improvements, as required pursuant to paragraph 9 aforesaid, A. Leaks in the roof were not repaired, as required by paragraph 9 (b) ; B. Certain grates were not repaired and/or replaced, as required by paragraph 9(b), resulting in a safety hazard and a fine by OSHAI - 3 - C, Appropriate heating and ventJ.lation were not Eupplied, as required by paragraph 9(c) I and D. The exist ing wiistewater facil i ty was not cleaned and repaired or otherwise brought into good operating condition, as required by paragraph 9 (g) . 13. Prior to and after September 27, 1995, James A, Talley repeatedly threatened to diapossess Plaintiff from the leased property and to take over and operate Plaintiff's business as his own, 14. In or about August of 1995, Defendants demanded an increas~ in rental, which Plaintiff opposed because Defendants had not undertaken the repairs and improvements described in paragraph 12 hereof. 15. During September 1995, Defendants improperly and in violation of the said Real Estate Lease, threatened to close Plaintiff's business. 17. On September 27, 1995, Plaintiff filed to Docket No, 5296 Equi ty, j,n the Court of Common Pleas of Dauphin County, pennsyl va- nia' a Complaint against DefenJants for injunctive relief, requesting therein that the Defendants be enjoined from terminating the said Real Estate Lease, from taking possession of the leased property, and from interfering with Plaintiff's business. lB. On September 26, 1995, a hearing was held before the Honorable William Lipsitt, who entered a preliminary injunction in favor of Plaintiff, as requested. - 4 - . 19. Thereafter, on or about November 1, 1995/ the parties entered into an Amendment to Real Estate Lease dated November 1, 1995/ a copy of which is attached hereto, made a part hereof, and labelled Exhibit "8", 20, On or about February 22, 1996, Plaintiff received from counsel for Defendants a Notice of Default dated February 21, 1996/ containing 12 alleged incidents of default. 21. The said incidents of default were either cured prior to April 3/ 1996, did not exist as defaul ts on that date, or were matters which Defendants had agreed in the Amendment to Real Estate Lease not to declare until on or after May 1, 1996. 22, Notwithstanding numerous written contact by counsel for Plaintiff to counsel for Defendants, requesting conmlUnication regarding the status of the lease, Defendants failed to respond (which failure was a violation of the Amendment to Real Estate Lease), and changed the locks on the building effective April 3, 1996. 23, Prior to April 3, 1996, James A. Talley told Plaintiff's employees that he would be taking over Plaintiff's business and that they would be working for him. 24. Prior to AprU 3, 1996, Plaintiff paid in excess of $1,000.00 for repairs t.o the overhead doors on the truck wash facility. - 5 - _J>. 25. Pefendants were obligated under the aforesaid Real Estate Lease to undertake and pay for the repairs to the said overhead doors, 26. On April 3, 1996, upon changing the locks, Def.endants excluded Plaintiff from the leased property, and began operating Plaintlff's business through the use of Plaintiff'a trained employees, equipment and other items of personal property. 27. On April 3, 1996, Plair.tiff was not in default of the [,ease or Amendment thereto, and Defendants' dispossession of Plaintiff was wrongful, without justification, and in violation of the Lease and Amendment thereto, 28. As of April 3, 1996, Defendants still had not undertaken the repairs and improvements itemized in paragraph 12 hereof. 29, Prior to and as of April 3, 1996, Defendants were aware that Plaintiff was interested in selling the truck wash business and was attempting to locate a purchaser for it. 30. Between April 3, 1996, and on or about October 31, 1996, Defendants operated Plaintiff's business, with little change, through the use of Plaintiff's trained employees, invoices, business name, signs, customer lists, goodwill, equipment and other items of personal property, Defendants also retained and Plaintiff has not received, Plaintiff's books and records, including information regarding accounts receivable. 31. On or about October 31, 1996, Defendants sold Plaintiff's business to Sukhvinder Jit Kaur and Jaspal Singh, and transferred - 6 - to them for use in the continuing operation of the said business, Plaintiff's equipment and other items of personal property, 32. At all times pertinent thereto, Defendants operated a fuel sales business adjacent to Plaintiff's business, and catered to owners and operators of trucks. 33, On or about the same date, Defendants also sold to Sukhvinder Jit Kaur and Jaspal Singh their existing fuel sales business. 34. The fuel sales business, and the property in general, was more valuable for sales purposes because of the existing and est~blished truck wash business, COUNT ~ BREACH OP CONT~CT 35. Paragraphs 1 through 34 are incorporated herein by reference. 36, Defendants' wrongful dispossession of Plaintiff from the leased premises directly resulted in a loss to Plaintif.f of the benefit of his bargain and loss of the value of the business and business opportunity established by Plaintiff, 37. Defendants' continuing violation of the terms of the leased impaired the usefulness and rental value of the property" resulting in a payment by Plaintiff of a rental amount in exce8S of the fair rental value of the property, 38. By wrongfully terminating the lease, Defendants prohibit- ed Plaintiff from realizing the full value of the leasehold improvements and rental paid for the use of the property. - 7 - 39. Despite demand, Defendants have failed and refused to return all or any portion of the aforesaid security deposit, 40, Despite demand, Defendants have failed and refused to reimburse Plaintiff for the costs of repairing the overhead doors, WHEREFORE / Plaint iff demands judgment against Defendants in an amount in excess of the jurisdictional amount requiring arbitration referral by local rule, together with interest and costs. COUNT II - UNJUS~ 41. Paragraphs 1 through 40 are incorporated herein by reference. 42, Defendants / actions in wrongfully dispossessing Plainti f f from the leased premises, and operating Plaintiff/s business to Pefendants' benefit, in selling Plaintiff' s business and in reali7.ing the value of the leasehold improvements made by Plaintiff and rental paid by Plaintiff, have resulted in an unjust enrichment to Pefendants at the expense of Plaintiff, and are against the fundamental principles of justice and good conscience, and are patently unfair, 43. As a direct and proximate result of Defendants' unjust retention of the aforesaid, Plaintiff has suffered and continues to suffer serious financial injuries and inequities that have resulted in substantial damages. WHEREFORE, Plaintiff demands judgment against Defendants in an amount in excess of the jurisdictional amount requiring arbitration referral by local rule, together with interest and costs. - 8 - COUNT III - UNFAIR COMPBTITIQH 44. Paragraphs 1 through 43 are incorporated herein by reference, 45. Defendants have intentionally engaged in unfair methods of competition with Plaintiff by misappropriating Plaintiff's business and business opportunities, 46, By engaging in unfair competition with Plaintiff, Defendants have ~aused Plaintiff to incur the loss of the benefit of Plaintiff's bargain under the lease, the loss of the benefit of Plaintiff's leasehold improvements, the continuing loss of revenues from the operation of the business, and the 10SID of the value of the business and business opportunities. 47. Defendants' actions as aforesaid were reckless, willful, intentional, outrageous, wanton and mal icious, and designed to cause financial harm to Plaintiff, WHEREFORE, Plaintiff demands judgment against Defendants in an amount in excess of the jurisdictional amount requiring arbitration referral by local rule, together with punitive damages, interest and costs. COUNT IV - INTENTIONAL INTERFERE<<CJ; ~ITH PROSii~VE BUSINESS RELATIONS 46. The a\'erments of paragraphs 1 through 47 are incorporat.ed herein by reference. 49, During the time Plaintiff operated the truck wash at the leased premises, Plaintiff developed a relationship with numerous - 9 - owners and operatorB of trucks, trucking companies and other customers. 50, Plaintiff had a reaBonable expectation that these relationBhips would continue and that Plaintiff would continue to wash trucks for those with whom Plaintiff had established a relationship, 51, Defendants intended to harm the Plaintiff by dispossess- ing it from the leased premises and thereby preventing the business relations from occurring, 52, Defendants' actions were neither privileged nor justi- fied. 53. As a dir.ect result of Defendants' conduct, Plaintiff lost the benefit of the prospective business relations, the value of the business Plaintiff had established, and the benefit of the leasehold improvements undertaken at Plaintiff's cost and tile rental paid by Plaintiff to Defendants. WHEREFORE, Plaintiff demands judgment against Defendants in an amount in excess of the jurisdictional amount requiring arbitration referral by local rule, together with punitive damages, interest and costs. COUNT V -~EPRESENTATION 54. The averments of paragraphs 1 through 53 are incorporated herein by reference, 55. The representations which Defendant James A. Talley made to John W. Lane, as set forth in paragraph 5 hereof, were material- - 10 - ly talse in that Plaintiff at no time realized anywhere near the volume of business represented by Deflfndant, 56, Defendant James A. Talley made thp representations with actual knowledge of their falsity or in r.eckless disregard of their truth or falsity. 57. Defendant James A, Talley made the representations with the intent to induce Plaintiff to enter into the lease and establish the truck wash business at the leased premises, 58, In j uf.ltif iable reliance upon the misrepresentations, Plaintiff enterpd into the lease, issued pro- forma financial st.atements to Meridian Bank, obtained from said bank a loan in the amount of $22,754,45, undertook and completed the leasehold improvements, purchased equipment and supplies, and established the truck wash business. 59, As a direct result of said misrepresentations, Plaintif.f has suffered financial losses and damages in an amount equivalent to the leasehold improvements, rental. paid to the Defendants, loss of profits, and the difference between the value of the business as represented and the value of the business as operated with the lower volume of business, 60. . If Defendant James A, Talley had accurately represented the volume of truck traf.fic, Plaintiff would not have entered into the lease and established the business. - 11 - l-fU L.. .. 'J u I I": J. .L.:,,; 4! 1 L.; U ,,' .u Li '''' L H H.u u L.: l-.t V 1 t,,; L; U P.IiJ~ , -, . ' ,I", ........ IlEAL UTAtll LI!o\SB Thl. LOll.. Allr~olllont (thll "Laal."), datld thll (!~ dey ot ~/ , U94 (Ilato) by end bctwll.1I 'l'ALLItY OIL OOLU'Ol\A'rtON e~U A. TA~~. Olin. dsht ("Leu<lLClrd" or "Leuuur") I ond J-BAll, Ilia. I DBA MID\lAY TRUCK WASil ('''rlnant'' or .LOB...."). TlI. plltti.. aKro~ .. f~l1111l11 pa.auSIl8I hn4lord, in conlidultlOn. ot tho LOlls. pllymoo.u provided in thil Asreemen.t, 1enoll to 'tenant tho trudl.-lIuh botlding sltullla 011 Nldl/llY load (proK .50' out 01 \lID eKit ot 1-76) in Bathel TOllnlhip, Del'''. COUDty, PennoylV'4l1ia 19.507. Said leeo. lneludoe tile Ilnd on wllloh laid building ie litulted toaeth.r wlth odequate lngr.l. ond olr.a. thoreto for conduoting I truok end .eml-trlll1.r Wlloh with porking Ireeo ao h,cG1naiter noted in tbb Agreeme.nt (thl "l:'remlooa") loclted lit IUdwlY P,ulId, Blthel, Ooollty ot Berko, hnosylvllnl1 19'07. Th. I?rell1ses al'l port ot tho real eotatl described in a deed recorded in tho OUlce ot the Illeor~or of uud. ot Berka Co" l'onnuylvania iu Buok _' Page_ ond /lort ot tho rlOl .Itoto dlleoribo~ io a oertain hue wttll puro.:bue optiou iu f.vo~ of Landlord dated SIOIU.CII\ TQOIlI1~ .lla11 be flnt1tlld tu ItOtO iu the true" weoh and ou tbl fremi.e. lueh item. of paraoual property 88 are deeMld oecea.ary to tb. oporatlon of a truck and tra1Ler 110011 buoincue duduS the term of thte Lila... Landlord oMll 00 t be llable for Iou ot or dumallO to suoh I toud !.terns. TEIUiI 'rhe huo terlll ohu11 CUlUiD~uce QIl the date electriCBl ocnlco hue boen mllde IIvalloblo to the Premllu, Dud .llllll, uniln tile term 1e oxtouded, ter~lnllt. on tha 8ame dnte ten (10) year. tllereefter. 'i t ~ OPTION TO lXTltlfD "fIlth Tenant haa the right to exteud thia Llau boyond June 19, 2003. Should tonout fully pel'form 811 tilt. tuml awl condition. of tbh Leeo., Tonllut may ell:tel1d the tar I. of thh Lam.. for II period of five (5) ,.eIfB, IInd for thru (3) IdditlOlllll periodo of the Dallle length, ench to eOlllllenea tha dey following the explrltiOll dete of the immediately preceding ter.1lI or extended term. All of the torme end provloione of thia Lellee .hell .Pllly to Lhe 81tteu~ed loooe tormo, inoludlog odjuetmoot of rentBl, Tonent may excreleu oBeh optiOll to uKtund this Leooa by glvins to Landlord noticB ot i tB Intention to do 80 not 1atl~ tllan nlnlty (90) daya p~ior to thl expiratiou of tha initial. lIa.. tllt1ll (for the lnitial optlon to extend), or the e.xplntton 01 tbe appl1cabla has. term (for tho oUbse'lu.mt optiona to extend), The notlce oha11 be sent by c.ectitled o~ reaistorlld moil o~ nneillnal1y rijcoSnl.zlld oVIl~l1i8ht oourlllr to Landlord At tho addnee "I eat forth herein. LEASK PAYHENTS. Tonant shall PAY to Landlord the su~ of $30,000.00 Bnnually, to be pe1d at tha rata ot $2.500.00 per mOllth, beginning tbirty (30) daYI after th.. beglnnlng ot tba LeB~e term, or upon till' dutll Landlurd'a oullsatlono under paragraph ~ ot tho !:xhl.blt of Additiollll l'rovhionl Bnd Conditlon. ore completed, which.vlr .hlll oceur liter, with rental blling Ildjuoted anaually accor~in8 to the CQORUIllIlI: Price Index tor All ltemo tor All Urban ConlullUlra, EXHIBIT I A ._.__.__._-~--.- "~""-I~,~"""'I-o..j I . U...J ,. , I _ 'I~:- publ1shed by tbo Durnu of Ll1bor StBUIUCI of tb. U.S. Uepartl\llnt of Lahot. ~h11..-W11DlOlton-Irllnto~ (1982-84-100), but oot to e~ell.d 3X to any y..r. S~ld payment .djUOtlllllt shall be rounded to unrest ,'.00. Such paymentl shall bo midI to tho Landlord It 7734 Porn Drlve, llardehur8, hUl1sylvllnie 1711Z, BI lIlay be ohlUlld from tlml to ttmo hy L.~dlo.d. ItOII-SOfflCIIDI'J: IIUIlOSI LeBBo. lhall bo cllllrged $2~.00 for coon oheo~ tlllt 10 nturoed to LeOlor for lack ot lufHcLeut fundi. SECUlltl DEl'08l'r1 At tnl t1mo of I1gllLng at thLI LeBBI, T~uuut Il1all PlY to Lou410rd, to trult, tho lum of '3,000,00 to be nl14 olld diaburstd fur 'hl1oot dll1ll&1I to thl 5'remhu (U auy) 08 provldod by lllw. SoLd lum ohll11 b6 dlp~lltll4 toto a threo (3) year OerUflelte of Deposit Ind tho lnteroOl Iball leeruI end bl edded to the prinCipal, Upon meturlt1 of the Certlf1eete at Oepollt, if Tenant la tll COilplLllnce w1th tbe tUDI. of thl. I,Olloe, tho prll1clpll Iud .cerued l,nterelt on the Certltlate of Dlpol1t Bha11 bo pald ove~ t.o 'tenant, and no further .ecurHy depoBlt nhAll be u'lulreo1. l'OSSESSIOlfl 'X~nant IhGll be entitled to pOBBeRllon It t!lQ beglllulnll of the Lello term, aud ohlIn y1l1d P006Qul.0l1 to Lnndlord on the last dey of the tel;1ll of extended forl4 of 1:111.1 LunDa, al Ippllcabh, unlnl othnrwlu agroad by both partlel 1n wrLtlug. USI Of 1'IIJUIISESI Tenant NY UII the ~temloeD ollly tot lIuoh une III hal been asned UpOll by thl Landlord Bud Teulnt Ln thla Agreement and/or by such amendment to lald agreement III 11 Ilegutlatud by till< poetlel. Tho PrelllLuo Illay be uGed for IllY other purpo.a only with tbe pdQr wrltten concollt of LlIoll.Jlord. which conlOllt sball not ba UllreeBonnbl.y withheld. Teuant shall notlty Llludlord of Iny o.n,!;1clpated extended Iboonce frolll the Premlles not later than tIla flret day of the eK~ellded ahunce. ll.ElIODELING 01. 81'1lUCTUIlAL IHPROVEII1!II1SI Exoept as otherwhe provlded hordo., Tenant .hall bovo tbe obl1lotion to conduct ouy cuultructlun or re~odolln8 (Ilt Ienaut'l C/(pence) thet IIaY be required to un the heDlllea .. .peclUed obove, and may cooltruot Bueh Uxtuu ou Llle Pnmlle. (at Teuollt'l expellee) thllt approprLate1y faoLlltate 1tl usa for Buch pur.poae.. Such conot{uctLoll Bhsll be undertak"ll and luch fixturel 1lI11)' be erected ollly With the prior wr! ttCJIl consent of till L8Ildlord whLch Ihlll not be uoreoBolUlbly wlthhcld. At the end of thlt Lla.. t.r~, Tenlnt Ihl1l bll entltlod to remova (or ot tbe re'lueat of Landlord Ih.ll remove) ouch fixture., oud .hall uator. thl Prtllllhu to lubltalltblly tb. lalDB aOlldltion of tha I?rOUlh.. at the aOmlllencement of tbll LeilIa. BAIKrENAHCI\; Tenant .baLL heve tho obli1l1lt101l to ll1llintoin tbe P{llllil" in good repllr at ell tllDel. Th1a obll&ot1011 ahall luoluo1ol thl plrkins lot, drlvewaY6. ond Bidewolks (including Bnow ond lee removal) merkod BS tonllot'. re.panllblity on Exhlb1t B hereto the lewer, wllter pipes, and othor matters related to plumbLni the .1eotrlcDl wirlna ., I I ;1 , I [ ,. '{ ., , , (, , , " " " " " ., n I.; ., ~ .~ 'f '.- ft :!. it , ,~. H '( l,~ ',\ " "? It l:l ,.. ,. .< '\ p. ! ~ ~ I "Ji,. P .. fa" J,. ~..... ~ ..... U ."' J.J L. I, L HI. U U L I~ V 1 l,; L U " ..,1 , . ,". ' Landlotd" obHsaUon for IIdntoolnce ahlll tnclude clpHal t.potu and iaprove~eot'l Ind all mlint'noncl Ind rlpair itlm. wlth re.poct tOI thl roof, ou~lde wolle. aud oth.r attucturel p.rt~ of till huildhS all p.rkiol .rlau, drivewaYI, aceoll .nd 11d.walkl Ihowo .1 Landlord'e telpouaibl11t, on Exhibit 8 horeto Ule heat in, ay.tam all other ltoml Of mllntenanoo not opoc1f10elly delegatld to Tonan t under thh Lea.. AOOlSS BY U!lDLOiD TO P1lJ1J :sr.sl Subject to Tlnant'l CODBont (Whlch Ihlll not be unrallonably wlthheld), Ll1udiord shall b,ave tha t11ht to entlt' tho PUlDiBes to lllaka InDpeo tiool, providl uecolluy eel.'viceo, or show thl unlt to pro,plOUvo bUYlr., mortg.,oea, tluantl or workaln. AI ptovided by llW, in tbl cnoo of Iny 8lllerSlnC1, Llndlord III' lutet the Ptem1"6 wlthout Tlnant'e conlOnt. UTXLITIIS AND SEBYICISI Tenant Iholl b. rospoueiblo for the followlns utilltlel and servicea In eouooct10n With thl Promi"61 - eloctrlo!ty w. tll: and eel/o r IU hOBtlns lorbase and tra.h diuposI1 janitorial latv1c.. tllephone service wator pump includlng maiutluanno th.reto pollution insuraoce (If ava1lable It rloQooabll cost) Bud General Liebility Insuranco or41oery 84tvlcle Bod meluteD40ca and plymeBt of no~l billing. and fot tho abuvI 11sted item.. - TenaBt acknowledses that Loudl'lrd haa fully explained to Tenaot the utility rotel, cbatael Ind eervle.. wbleh Tonout 101111 be required to pay (if IIny), other than thou to be plld dlne tly to the uUll ty comp.ny furnlsbll\8 the "rvleo. flDfERtI INSURANCEI Landlord Ind Tenant shsll noch ba res pan. ibIs to maiBtaln appropriato 1nsurance for tl1l1r rOlpeot1vo iotareltl in th" i'rolllBel and propetry loclted 00 the Pramisee. LlABlLI1'7 :tll:;l)a~C1.l: T.cl:ll1nt 8h811 ul,ntatn pllbUc Uabl.l.ity Insuranel with p.nonal 10jury H~ltl of at luot flOO,Ooo.OO for injury to on. porsOIl, aDd .500,000.00 for Bny one accident, Bad a 11mit of It loost f250,000.00 for dlmllio to propetty. Teoant shall del1vot spptopriete eVldence to Lendlotr! liS proal! that Idequote Inauronce 11 in force. L.ndlord sh.ll have the rlsht to requlre that the Landlord receivo noticl of any term1nation at .uch In.urance POliclos. XliD!IlIIlrt 8JlGAIU)[NG USIl 0' l'a.!IUSESI Teollnt agre.. to Induln1ty, bold berml..., and dllend Landlord hOIl aod aglinst ony aud lonu, claiml, liebiUtiu, en4 ., " 'I , ,I " .\ ,; ,I .1 ,! '"1 " , ': :1 i I, ,I :, I " " q , " " I ~, ! I :I I; .', ;1 , " 1 11 ,I , ,~ ., :1 " , I I :1 " ..I :1 'I ,. 'I :, l, 11 il .... '.-, , I ..... .... . ' '- . I I I ~ ~ lo- .... ." J. '- "- o,.J ".. Uu I IxpenSUI, ~nuludLnR tOBlonabla attotnOY fees, Lf any, whlch Landlord may .uffe~ or lncur in connectlon wlth Tlnant'l U.I of thl Prcmlsl.. DA1Illll&.OUS HKtr.l.lALS: Ilxcept fat thou. Illuedal.l /lnd IUpp11011 reuonabl)' nlceusary ill thl conduct at TUDllllt'1 budnell, Teunt oh611 not koop or heu OD thl Pr811LuI Iny erticlo or tnlnl of I dunluroul, lnflalllJllabll, or oxploILv8 enarectar that m1Sht lubotl1ut1dly lnerceuu tlla denior of firs on thl t'rel1liIOI, or that !llght be cOLwldlrad hltardou. by n raaponatbll ll1luranCI company, unlen tne pr~or wdttln COlloont of LBndlord 1. obtnln.d an<l proof of adequate in8urllnco protlctlon 1.1 provldlld by 'lenunt to Llndlord. i'AXI!SI TaKes attrLbutabh to tbe ptemLlu or tn. uao of tba L'rllD\lau .nnl.l b. Illonated aa tallow., Raul Eltetll Tuxl. ~ Lnndlord .blll pay all rcal Iltate taXI I And UI.,lImeuu tor thlll l'rCUllll", Pereonal Taxu . Tllnont oholl pay All of ,lDant'o peraonal tuoa, IlIlployrnont, t.axu for 'l'M"nt'l employeeu nnr.! any othor olllu'ij" whlcb may be lev led ",ll1uat the I'remlaU end whlch Ot8 attributable tu Tenant'u uue of the Frornl.... D&STlU(''TIOlC Os. COllDEMNATlOlC OF l.'B.l!/USE.5. If the L'rcmiuGs I\ra partially del troyed In A manner that provuntu the cuuUIlCLiu& of tenant' a ule of the l'remlues in A oorm.ll husleccD lllanner, auu if tho dowo~u ie naeunllbly re9aiublo liltbln I1xty days lifter tho occurr4nce of the destruction, and if the coot of npair il 1.11 that. '25,OOO.UU, Landlord snal! rUlllllr the l'uI11us ao<1 leooo paymentl shall ebata durina the period of the repalr. Howuv.r, if the dellage 10 1I0t repairable within .1xty deya, or if tbl COlt of r"Plir 11 '2~,000.00 or more, or if L&Ildlord La provonted from ropdtlu8 the dllm.sa b)' forclla b010nd Landlord's control, or if thll property 11 condellned, this Leale shall totlllnllto upon twenty daYI wrl.ttcI> nutice "f ouch eveut or conditiol\D by oleher party. &CIlAlflCS LlIlllS; Nlllther tho Tenatlt nor unyone clalmlllll through tho Tenent ahell hava thu r1lht to tUe llluchunlcD lieua or auy othar klnd ot Hen ou the PrelllDos IInd the tUing of tllla Lease COIIstitUt.... notice tblt luch lienl lire invalld. Purther, tanllnt agreGs to 81ve actual advance notlce to any contrlctorl, lubeoutractora or lupplier. of goodl, labor, or lervicel that such Hene will not b. veUd. . DEFAULtS. Tenant IheLl ba in default of thle Lease, if Tenant fnila to fuLfill any lellO ~bligatl.on or term by which ,enone ie bound. Subject to uny governins provillone of law to the coutrary, if Tonant !alle to cure IIny f1uancl.el obll18tion wlthln sixty (60) dllYI or IIUY uthn ohl1gatlou withiu uluaLr (90) dSYI anlr wrHtell notlce ot luch default La pro'llded by Landlord to Tenant, Landlord ..ar teka po..eulon of the frelll1ses without further l\otiCIl, and without prejudlclng Landlord'a rights to demsges. In tho alteroative, Landiord Illa)" allct to curo e~ dofault and the cost ot such action shsl1 ba addod to Tonant's flnaociel obHllationB under thh terue. TaMut .hBll pay all COltl, daUll1S", I I l , I \ I I ! \ I , [ \ " " I , I ~ I ~ i I " j . " ~I ,I l' Ii ~I i ., ! i , .< ! ~ i , t I ~ ~ ." - -- ....- I '-....... I , ..~ ,_ I . ,~. I I j I 'j ~ l_ ., .., .&. ..... L- ...., I~ .. ...., L.l " I and Ixpelllee luffel:od by Lalldlotd by nnoo af Tenant', dufaultl. CUKUJ.AtlYIS B.1\llltlll the dsbtl of tbo pllttlal u\I"lor tbb looo. It. cUl/ulative, Ilnd Ibl11 not be conutrued am l)tclulhe un1nll atbe~"I.1ll u'lulnd by lllli. aO'Wltta LAIlS I Ih1u Leaua Ihl\l1 b. conatrued in accordancll I/ith tha lawl of tha State of ~enQlylvaolo. WlTiA1'IOa" ^IlY controvurp:' lit claim ulatins to thil CODttlCt, lncludlna the caDlttUQtloo or QPpllclltlon of thll coutract, will bu I8ttlld by bindLns nbLtrlltLon undel: tha rul.. of tho American ArbLttlltion flDAOcll1tioo, Ilnd IIny judament 4untod by the arbHrator.(I) m.ay be entel:od in any Court of proper Jurh<llat!oQ. ASSIGWlLITY/SUllU\'rrxllGl Tentlllt may not .ubleue OilY inturest in Lhe 1'romLllos IIlthout tho prlor wdtten eoneent of Landlord, willeD Ihell !lot bo unreauollably withheh\. Tenuut Ihall bav. tho right to euiSt1 tha Leasl to a corporaUoll ln Whiall they hay. . 100% aWllerehip interli8t, provided laid corporoUon nl.ltOeA to accept ALL ob111ntioWl undor thle Leaee. Upon .ale of the buslnesl ope~etod by Tenant 011 tho PcemlsM, tenant shall have tho ~ight to /ud80 tho Luse to the putcbuu if tba putchasl1r agtcca to acce~t ull oblllutioua under tha LeoDo olld 11 fiuanoially reapon.ibLti. BOTtCIlI Nottan under thie hUG ehull not be deemed vel1d unleu llivon or 14rved In wrltins ODd forwarded by ~ail, postlse prepaid, oddroo..d ea tollOl/l1 WDL08.D1 TALLE~ OIL COR~ORATION, JAM~S ~. TALLBY, paESIDENT 7794 fern DrlvlI UerrlsburS, Pnnneylvon1B 17112 TllllJltl J-!A!, INa., DBA HIDWA~ TRUCK WASH clo Dax 693 Oemp Ul11, ~cnnGylvQllia 17011 Such addcIl08QS I1aY be changed fl:om time to time be either party by providlD8 notice as aat forth abavo. I!N'l:IIlIl AGRUHli:Nt/JJlEllDllENTI This Leoell Asrllllllout contaLns the eutire ogrlW4nt of tb. partieo and tlare ate no other: proDllses at' conditions in ony athel: agraeruent whothn orel or wrLtt'tn. Thlll Lease ruoy b. llIodified Or amended ill Writing, if the writing II dlln.d by the party obligated ednel."' t.he emendmoDt. SBVIlIlA.8ILITY: If I.ny portion of thie Leon .haU be held to b. lnvalLd or ulIClu!orceable tor: lo.y ullon, tlle remallliug pr:ovlo10l1o eMU eOIlt1llue to b. valid and euforcftllbllt. If a eouet hllda that oay pt'ovhian of thio Loooe 10 lnvel1d ot' unenforceable, but the t by 11m!. tiuI lueh praYhioQ, it would beco~o I t, r' I. , ,. I I: ~. I .' Ii " '. :! " ,; , :1 ", asrood upon by tho PQcth~, lIul1 furthllr, tllu Lenete-Tenont laCOOo then IhaH b. no blockina ot thl fueling IlCCWUQ ar~GI nor; olioi! thoro be 10Y proLonaed parkinS 01 any vahLclaa on the proluhCI. forkin8 touBar than I three (3) hour poriod by other than e truck-wlloh o'"ployo%perltor Ihnll ba d..Dld III exceaaLvo tor: purpole, of tbh cUnditLon. 3. The Lau.. ohaL! lnaLntdn thl proUllus ill II DOllt lIod ordClrLy cOlldl.t1ol1, 111CludluI igproveDlontl ther.to. 4. Th. LosOQG Bhnll lurniBh to ~h8 LUlor a "reLlolle" frolll 110bil1 ty for Ally and all. tutur. OontBlIIlnntiol1 to tho Pt'el1lLlu wh1cb /IllY artae II II ruult of 1111 OOCUponcy. " The LeUllo sho11 furnish the Leooor 1oI1th a copy of II cor:tifLOota 8Videacing thot the Leaoell bill Obtnin.d thl iOGurlual coveroaeo required 111 th" Lellle. 6. Tho' 1.1"'" Ibdl cOlloUl.t "'1th the Leslor 01\ any proposed changes, additLon~, aud/or aLtllcetiollo to th" premilll which DUBY aftect the operationo of tb" t~uck w4sh or the tuel1nll factlL ty. 1. 'tbe LeQ~c" eurUDn to comply W1th nll current and futur" OIlR rules Ind reSUlatione end tb. Louuor earoen at no coot to the Lessor, to aseiet tha LOslell in alleViating Bucb future rules ond roguh.tioll8 00 may be iDlpOBGd by OCR or o the. 8overnllluntol eaenei co aUac tiDU tho t.uclt wueh. Tho Leuor lIi11 alau graDt tho Lesscltl pnruI1ssion to maka ouch chouson/aLterutiollS eo nre requ1red tor compliaac8 wltb ruleo and rU8ulatioDo of ouch eUonclol. 8. Tho tessela sgrees to pnlnt exterior blOCk-work, to paine tho interior of th~ structore, and will. malDtdn the struc~uru arrd exterior pr:emiscls in eccordance with OSHa rules nnd regulatious, botb current and tuture. 9. P~iol:' to dOlhery or possession of the Prelllio03 to Tenant, Londlord sbeH cOPIPlette the followina: e. Installat10n of naw locks ou the trunk "'ssh etructure b. Repeir ot any strUctural damaBa c. PrOVide epproprlate heating Illld V811tLletioll for the eaid B'truatuta d. PrOVide adequats water service to thcl head of the outlat e. PrOVide 8de~uut. electr1cal service to the Btl:'Ucturll t, Repair d"lOallc to the cs tWalk g, Clesn and repair, if neCclOoary, the exLltins IoIBste water ,aCility ao that tt is in good operatLns Clllldit1011 ~, " ;1 . l i 'Ii \'; ~. ~i ~. .1 I, I ,1 1: l\ f. );1 k " -"'I j, \'; \ I' r: .:', :1, Ii f, I' I ':1 . \': ~i jl ~: 1; ~: ~' \.1 ~: ji q: .' , ~ ~~ ~ ./ (., ~ 'I r,. I fr <, .' ',' '. . , or' AMENDMENT TO REAL EBTATE LEABE This Amendment to Real Estate Lease (IIAmendment") dated effective November 1, 1995, by ann between Talley oil corporation and James A. 'ralley, in his own right ("Landlord" or "Lessor"), a:'ld J-Bar, Inc., d/b/a Midway Truck Wash ("Tenant" or "Lessee"). WIT N E S BET HI WHEREAS, the Landlord and Tenant ar.e parties to a Real Estate Lease dated July 6, 1994, the terms and conditions of which are incorporated herein by reference; and WHEREAS, tho Landlord and Tenant have agreed to this Amendment on the terms and conditions as hereinafter set forth. NOW THEREFORE, in consideration of the premises, and the terms and conditions of the Real Estate Lease, and intendil1g to be legally bound hereby, the parties agree as follows: 1. Recitals. The recitals set forth above are incorporated herein by reference as if set forth again in full. 2 . J,.ease Davments. The par.agraph on the first page of the Real Estate Lease entitled "Lease Payments" is amended to add the following: (a) The rental for the month of September, 1995 shall be the fixed sum of $2,500.00 and shaH be paid by the delivery to Landlord of those monies in the sum of $2,500.00 presently held in accordance with the Order entered September 28, 1995, in the matter ca~tioned to No. 5_96 civil Action Equity by the Prothonotary of EXHIBIT I , h the Cou~t of Common Pleas of Dauphin county, Pennsylvania. (b) The ~ental for the month of October, 1995 shall be reduced to the sum of $2,000.00 due and payable by Novembe~ 6, 1995. (c) The rental for the month of November, 1995 shall be the greater of the fixed sum of $1,500.00 or 15% of the gross proceeds of the Tenant's business conducted at the premises for the month of November, 1995. The rental for the month of November, 1995 shall be paid as follows: $1,500.00 on or before June 6, 1996; the amount of rental in excess of $1,500.00, if any, due and payable on December 6, 1995. (d) The rental for each of the months of December 1995, January 1996, February 1996, and March 1996 shall be the greater of $1,500.00 or 15% of the gross proceeds of the Tenant's business conducted at the premises, said rental to be paid as follows: the sum of $1,500.00 on or before the sixth of each month beginning December 6, 1995 respectively; if the amount of rental due in any month is in excess of $1,500.00, said excess shall be paid by the 6th of the following month. (e) The rental due for April 1996 and subsequently shall be pursuant to the terms and conditions of the Lease Payments provision in the original Real Estate Lease. (f) For purposes of calculating percentage rental for the period November 1995 through March of 1996, the Tenant shall provide by the 6th of the following month, a statement of the gross 2 proceeds of the businoss for the preceeding month, together with such documentation as the Landlord may reasonably require. 3. Defaults. The Defaults provision which appears on the fourth page of the Real Estate Leaae, shall be amended to substitute the time period of "eifteen (15) days" for "sixty (60) days" and to substitute the time period of "thirty (30) days" for "ninety (90) days". 4. clarification o'~ault\L. The parties agree that the Landlord shall be provided a period of six months from the date hereof to repair leaks in the roof, to repair or replace certain grates, and to supply appropriate heating and ventilation, to the extent the same e.re req'~ired by the Real Estate Lease. The Landlord shall be provided such additional period as the parties shall subsequently agree to clean, repair or otherwise bring into good operating condition, the existing waste water facility, to the extent the same is required by the Real Estate Lease. The Landlord agrees to withdraw its Notices of Default dated September 22, 1995, and October 27, 1995, and to issue no further Notices of Default for the non-financial obligations recited, until on or after May 1, 1996, with the exception of the items referenced in paragraphs 4 and 10 of the letter of October 27, 1995. The Tenant agrees to withdra.w its Notice of Default as set forth in the letters from its counsel dated August 30, 1995 and 6eptember 1, 1995, respectively. 3 VERI>>:~CATION I, John II. Lane, President of J-Bar, Inc., hereby verify and state that to the extent the foregoing document contains facts Supplied by llIe, they are true and correct to the best of illY knOWledge, information and bel ief I however, to the extent that the foregoing document and/or its language is that of counsel, r have relied upon counsel in making this Verification. I understand that false statements herein are subject to I;he penalties of 18 Pa. C.SA, 4904, relating to unsworn falsification to authorities. John Datel I( /1/)\ if j ,