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I " , " ;1 ' " ~: I --6~ ~ ~ I ~ , ji) ~ \.., ~ '-2 ~ N) ~ ~ .... .~~ 'rx jW '\L 'i , , - ~ ~C'\ ' ' " Ii' " " " I' " , I , ' " " 'I " ,-j , I" j' , , , I i'l! " ,', " " ! j " , " " , " , I , , , " , I:, , I' , , I' "L' " , " II II , " I' lUIS.IR Det.ndant Q-Zar Franohising, Inc. ("Q-Zar") / by and through their couneel, hereby answer the averments ot the complaint as tollowst 1. Admitted in part and denied in part. Q-Zar admits that Plaintitt Keith Plasterer ("Plasterer") is an I\dult individual. Atter reasonable investigation, Q-Zar is without knowledge or information sutficient to form a belief as to the truth of Plasterer's averment regarding his address. This averment is accordingly denied. 2. Admitted in part and denied in part. It is admitted that Q-Zar has an address of 1701 North Market street, suite 200, Dallas, Texas 75202. It is specifically denied, however, that Q_ Zar is a corporation organized and existing under the laws of the state of Texas. on the contrary, Q-Zar iu organized and existing under the laws of the state of Delaware. 3. Admitted. 4. Admitted in part and denied in part. It is admitted that Q-Zar has in the past engaged in certain discussions with Plasterer and Carlisle sports Emporiuln, Inc. ("Carlisle Sports Emporium") . Although these discussions generally conoerned a possible "purchase of a franchise interest [in] an entertainment laser-tag g01me franchised by" Q-Zar, they were not limited to thIs subject. 5. Admitted in part and denied in part. It is admitted that Plasterer executed the Deposit Agreement. This dooument, 2 however, is in writing and speaks for itself. Aooordingly, any oharaoterization of its oontent and meaning is specitioally denled. 6. Admitted. 7. Denied. The agreement ls a document in writing whioh speaks for itself. Aocordingly, any characterization of its content and meaning is specificallY denied. B. Denied. It is speoifically denied that there was no agreement on terms. On the contrary, the parties agreed to a 11 necessary and material terms of a franchise agreement. 9. Admitted in part and denied in part. It is admitted that the June 5, 1996 letter was sent to and received by Q-Zar. However, the document is in writing and speaks tor itself. Accordingly, any characterization of its content and meaning is sped t ica 11y den ied. After reasonable invest igat ion, Q-Zar is without knowledge or information sufficient to form a belief as to the truth of Plasterer/s avermont that the letter was sent by certified mail. This averment is accordingly denied. 10. Admitted in part and denied in part. It is admj,tted that the June 20, 1996 letter was sent to Plasterer and Carlisle Sports Emporium. However, the document is in writing and speaks for itself. Accordingly, any characterization of its content and meaning is specifically denied. The same is true of the Deposit Agreement. Plasterer's averment that Q-Zar refused to abide by an agreement is a conclusion of law to which no response is required. 11. Admitted in part and denied in part. It is admitted that Q-Zar has not returned the sum of $25,000. The remainin9 3 , '. '- . avermsnts of this paraqraph are oonolusionll of law to which no responss is required. 12. Oehied. Plaeterer's averments that Q-Zar has breaohed an agreement and that Plasterer has suffered dtmages are conolusions of law to which no response is required. To the extent a response is appropriate, it is speoifically denied that Q-Zar is in breach. After reasonable investigation, Q-Zar is without knowledge or information sUfficient to form a belief as to the truth of Plasterer's averment that he has suffered damages. The averment is accordingly denied. WHEREFORE, defendant Q-Zar Franchising, Ino. demands judgment in its favor BI1d against plaintiff Keith Plasterer, dismissal of the Complaint with prejudice, costs, attorney's fees, and any other relief the Court believes appropriate. NflW MATTER 13. Q-Zar incorporates by reference the foregoing Paragraphs 1 through 12 as if set forth herein in full. 14. The Complaint fails to state a cause of action upon which relief can be granted. 15. Plasterer lacks standing. 16. Plasterer is estopped from making his claim. 17. Plasterer's claim is barred by the doctrine ot uno lean hands. lB. In violaUon of the Pennsylvania RUles ot Civil procedure, Plasterer did not verify his Complaint. 4 . The "Deposit Agreement" is lacking in .oonsideration. Plasterer's claims must be set off to the extont he and carlisle sports Emporium have damaged Q-Zar by engagln9 in the oonduct described in greater detail below. 23. Plasterer and Carlisle sports Emporium defrauded Q_ Zar by engaging in the conduct described below. 24. Beginning sometime in late 1995 or early 1996, Q-zar entered into discussionD with Plasterer and Carlisle Sports Emporium with regard to a possible franchise agreement relating to a "laser tag" game system which is the property of Q-Zar. 25. "Laser tag" is a competitive game, the object of which is to score and accumulate points by "tagging" other participants and certain objects with a laser beam emitted from a "gun." In the laser tag game which is presented in Q-Zar's franchise package, the competitors are divided into two teams. Each individual team member i6 outfitted with a laser "gun" and vest, which are linked to computers whiGh automatically monitor and calculate individual and team scores as the game is played. Each player is alloted a certain number of "lives," one of which is lost each time that person is tagged by a member of an opposing team. Once a player has lost his or her alloted "lives," he or she may 19. and In law. 20. and in law. 21- 22. Q-Zar's aotions were at all times justified in fact Q-Zar's actions were at all tlmes privileged in faot 5 . acquire additional "lives" by "re-energhing" at oertaln deslgnated areas within the arena. 26, The game is played in a defined spaoe/ known as an arena, for a defined period of time. During the game, partloipants negotiate various arena obstaoles, simultaneously attemptinq to score points and avoiding the attempts of opponents to tag them. 27. The marketability and appeal of a laser tag faoility turns primarily upon the layout of the facility, design ot the a~ena/ placement of components within the arena, and other elements such as lighting, carpeting, decoration and music. 28. Q-Zar is one of the leading laser tag companies In the world, and is renowned for ita expertise and experienoe in the field and for the quality and utility of the products and services it furnishes. Q-Zar provides superior facility and arena layout and design, which gives a more challenging and enjoyable experience to customers. 29. The elements of the design, layout, and trade dress of a Q-Zar laser tag franchise are very valuable to Q-Zar and to its franchisees, and provide a significant competitive advantage over laser tag packages provided by most other companies in the field. 30. Q-Zar participated in its discussions with Plasterer and Carlisle sports Emporium honestly and in good faith. 31. At the outset of these discussions, Q-Zar gave Plasterer and Carlisle Sports Emporium a copy of Q-Zar/s Offering circular. This document specifically noted that information which 6 . 'I would bs given to franohisees was proprietary and contidential, and could be ueed only for development of a Q-Zar franohise operation. 32. on or about April 17, 1996, the partles entered into a letter of intent whioh set forth the material terms ot the parties' proposed transaotion. 33. It is not Q-Zar's normal praotloe to provide oonfidential and proprietary information to franohisees before execution of a written franchise agreement. Q-Zar informed Plasterer and Carlisle Emporium of this polley. 34. Notwithstanding this policy, Plasterer and Carlisle sports Emporium demanded that Q-Zar prepare and provide them with oertain confidential and proprietary information prior to exeoution of a written franchise agreement. This confidential and proprietary information included, but was not limited to, design documents, drawings, and materials lists. 35. In making this demand, Plasterer and carlisle represented that they intended to open a Q-Zar laser tag faoility, that they intended to continue working toward execution of a final franchise agreement, and that they did not want to delay the opening of their laser tag facility beyond the date they had scheduled. 36. It was always understood and promised, either expressly or impliedly, that the parties intended to execute a final franchise agreement. Implicit in this understanding and promise was the further understanding and promise that if no final written franchise agreement were executed, Plasterer and Carlisle 7 ~ Sports Emporium would return any oonfidential and proFrietary information provided by Q-Zar, would not use the information in any way/ and would not share the information wlth any third-party. 37. The foregoing representatlons and promlseB of Plasterer and Carlisle sports Emporium were talse, were made with knowledge of their falsehood, and were intended to induoe Q-Zar into providing confidential and proprietary information. 38. contrary to their representations, Plasterer and Carlisle sports Emporium had no intention of entering into a final franoh ise agreement. Instead, they l3ecretly planned to obtain confidential and propr ietary information from Q-Zar, to use the information to their own benefit, to terminate negotiations with Q- Zar, and then to refuse to return the information. Plasterer and Carlisle sports Emporium did not disclose this sch~me to Q-Zar. 39. In reasonable reliance upon the knowing misrepresentations of Plasterer and Carlisle Sports Emporium, Q-Zar continued negotiating and prepared confidential and proprietary information and provided it to Plasterer and Carlisle sports Emporium. By way of example and not of limitation, Q-Zar prepared certain drawings specifically for Plasterer and Carlisle sports Emporium, and also furnished them with other confidential and proprietary information pertaining to Q-Zar facilities and arenas. As noted above, this data was and is significantly valuable to Q- Zar, and was and is also subject to protections of the United states copyright laws. 8 40. Boon after reoeiving oonfidentiat and proprietary intormation from Q-Zar, Plasterer and carlisle Sports Emporium unilaterally and in bad faith refused to exeoute a final franohise agreement, even though the parties had already agread to all material terms of such an agreement. 41. In response to this termination, Q-Zar requested that Plasterer and carlisle sports Emporium return the oonfidential and proprletary lnformation which they had received, and warrant that no use had been made or would be made of this information. Plasterer and Carlisle sports Emporium refused thia request. 42. Unbeknownst to Q-Zar, Plasterer and Carl is le sports Emporium had already used the confidential and proprietary information to their own benefit in constructing a laser tag facility in cooperation with one of Q-Zar's competitors, a company known as >>Laeer Tron.>> By way of example and not of limitation, Plasterer and Carlisle sports Emporium built a laser tag facility which ili'. largely, if not completely, identical in all material respects to the facility set forth in the confidential and proprietary designs which Q-Zar prepared for and provided to Plasterer and Carlisle sports Emporium. 43. Plasterer and Carlisle sports Emporium presently own and operate the laser tag facility which was based on the confidential and proprietary information which they had fraudulently obtained from Q-Zar. 9 . 44. The fraudulent soheme o~ Plasterer and Carlisle Sports Emporium has oaused Q-Zar to sutfer signi~ioant monetary and other damagell. WHEREFORE/ detllndant Q-Zar Franohising, Ino. demands judgment In its favor and against plalntit~ Keith Plasterer/ dillmillsal at the complaint wlth prejudice, costs, attorney's tees, and any other relief which the Court believes appropriate. COUNTERCLA~~l (BREACH QF CONTRACT) 45. The foregoing Paragraphs 1 through 44 are inoorporated herein as if set forth in full. 46. During the negotiations described above in detail, the parties entered into a Deposit Agreement. 47. The Deposit Agreement imposed upon Plasterer and Carlisle Sports Emporium the duty to deal fairly and act in good faith with Q-Zar. 48. Plaoterer and Carlisle Sports Emporium breached their duty of good faith and fair dealing by misappropriating and misusing the confidential and proprietary information given to them by Q-Zar, by sharing this information with third parties, and by refusing to return the information to Q-Zar. 49. In addition, Plasterer and Carlisle sports Emporium either expressly or impliedly promised that if no final written franchise agreement were executed, they would return any confidential and proprietary information provided by Q-Zar to Q_ Zar, would not use the information in any way, and would not share the intormation with any third-party. 10 . 50. Plasterer and Car lisle Sports Emporium breaohed this promise by misappropriating and milllusincJ the oonfidential and proprietary informatlon given to them by Q-Zar/ by sharing this information with third parties, and 'by refusing to return the information to Q-Zar, 51. The foregoing breaches of the Deposit agreement have oaused Q-Zar. to suffer peouniary harm, including but not limited to the value of the oonfidential and proprietary information. WHEREFORE, countercla im pla int i ff Q-Zar Franchising, Ino. demands jUdgment in its favor and against counterclaim defendants Keith Plasterer and Carlisle Sports Emporium, Inc.; compensatory damages in excess of $25,000; an injunction prohibiting the continued possession, use, and/or communication of Q-Zar's confidential and proprietary information; costs; attorney's fees; and any other relief which the Court believes appropriate. COUNTBRCLAIM COUNT II (FRAUOULB~T-MISRBPRB~~~_ 52. The for-ego Lng Paragraphs 1 through inoorporated herein as if set forth in full. 51 are 53. As described above, Plasterer and Carlisle sports Emporium misrepresented that they intended to open a Q-Zar laser tag facility; that they intended to continue wbrking toward execution of a final franchise agreement; that they did not want to delay the opening beyond the date they had scheduled; and that if no final written franchise agreement were executed, they would return any confidential and p~oprietary information provided by Q_ 11 Zar to Q-Zar, would not ~De the information in any way, and would not share the information with any third-party. 54. These misrepresontations were material to the transaotion at handl were made falsely, with knowledge of their falsity or reoklessness as to whether they were true or falsel and were made with tho intent to mislead Q-Zar into relying on them, and with the intent to obtain confidential and proprietary information from Q-Zar. 55. Q-Zar justifiably relied upon counterolaim Defendants' material misrepresentations. 56. Counterolaim Defendants' material misrepresentations proximately caused significant pecuniary and ethel' injury to Q-Zar. 57. The fraudulent conduct of Plasterer. and Carlisle sports Emporium is outrageous, and warrants an award of punitive damages. WHEREFORE, counterclaim plaintiff Q-Zar Franchising, Ino. demands judgment in its favor and against counterclaim defendants Keith Plasterer and Carlisle sports Emporium, Inc., compensatory and punitive damages in excess of $25,0001 an injunction prohibiting the continued use, possession, and/or communication of Q-Zar's confidential and proprietary informationl costsl attorney's feesl and any other relief which the Court believes appropriate. 12 . COUNTEROLlIM OOUNT III INI8APPROPRllTION or TRlDI-6ECRETD) 58. 'rhe foregoing Paragraphs inoorporated herein as if set forth in full. 59. As described more fully above, Plasterer and 1 through 57 are Carlisle sports Emporium have obtained confidential, proprietary, non-public information relating to the laser tag franchise operations and productll of Q-Zar, which information constitutes trade secrets. 60. The trade secrets imparted by Q-Zar to Plasterer and carlisle sports Emporium are valuable to Q-Zar and important to the oonduot of its business. 61. Q-Zar has the right to use and en j oy the trade secrets which it imparted to Plasterer and Carlisle sports Emporium. 62. The trade secrets imparted by Q-Zar to Plasterer and Carlisle sports Emporium were obtained by Counterclaim Defendants in a position of trust and confidence. 63. CounterclaJ.m Defendants obtained these trade secrets for the purpose of advancing their own personal interests, not the interests of Q-Zar. 64. Counterclaim defendants procured these trade secrets by improper means, and to advance the rival business interests of themselves and Q-Zar's competitors. 65. The a forement ioned misappropr ia tion of trade secrets has proximately oaused Q-Zar to suffer pecuniary and other harm. 13 , 66. The fraudulent conduot of Plasterer and carlisle sports Emporium is outrageous, and warrants an award of punitive damages. WHEREFORE, oountllrolallR plaintiff Q-Zar Franchising, Ino. demands judgment in its favor und against oounterclaim defendants Keith Plasterer and Carlisle sports Emporium, Inc.I compensatory and punitive damages in Qxoess of $25,000, an injunction prohibiting the continued use, possession, and/or communioation of Q-Zar's confidentia 1 and proprietary information, costs, attorney's fees, and any other relief which the Court believes appropriate. COUNTEROLAIM OOUNT IV IPROCURININT OF INFORMATION BY IMPROPER MBANII 67. The foregoing Paragraphs 1 through 66 are incorporated herein as if set forth in full. 68, Plasterer and Carlisle Sports Emporium have engaged in a oourse of conduct in which they used their relationship with Q-Zar to advance their own business interests. 69. Plasterer and Carlisle Sports Emporium knew or shOUld have known that their scheme to procure and use Q-Zar's confidential and proprietary information was improper. 70. The wrongful procurement of this confidential and proprietary information has proximately caused Q-Zar to suffer pecuniary and other harm. 71. The wrongful procurement of this confidential and proprietary information is outrageous, and warrants an award of punitive damages. 14 WHEREFORE, counterclaim plaintiff Q-Zar Franchising, Inc. demands judgment in its favor and against counterclaim defendants Keith Plasterer and Carlisle sports Emporium, Inc., compensatory and punitive damages in exoess of $25,000, an injunotion prohibiting the continued use, possession, and/or communioation of Q-Zar's confidential and proprietary information, costJil' attorney's fe6s1 and any other reliof which the Court believes appropriate. COUNTBRCLAIM COUM~ IOONVI!RI.l2Ifl 72. The foregoing Paragraphs 1 inoorporated herein as if set forth in full, 73. By engaging in the conduct described above, through 71 are Plasterer and Carlisle Sports Emporium have deprived Q-Zar of its right of property in, or use and/or possession of, proprietary and confidential information. 74. This deprivation was without Q-Zar's consent and without legal justification. 75. Counterclaim Defendants' conversion of Q-Zar's prorrietary and confidential information is outrageous, warranting an award of punitive damages. WHEREfORE, counterclaim plaintiff Q-Zar Franchising, Inc. demands judgment in its favor and against counterclaim defendants Keith Plasterer and Carlisle Sports Emporium, Inc., compensatory and punitive damages in excess of $25,000, an injunction prohibiting the continued use, possession, and/or communication of Q-Zar's confidenttal and proprietary information, costs, attorney's fees, and any other relief which the Court believes appropriate. 15 , OOUNTERCLlIM COQ~T VI I UNJUj!'J1.JJHBlQIDlflIiTJ 76. The foregoing Paragl'aphs inoorporated herein as if Bet forth in full. 77. As described more fully above, Q-zar Qonferred 1 through 715 are substantial benefit upon Plasterer and Carlisle sports Emporium by preparing and providing confidential and proprietary information which included, inter tll..i!I., Qesign and material,s information speoifically tailored to Counterclaim Def&ndants' needs. 78. Plasterer and Car.l isle Sports Emporium have appreciated the benefits conferred upon them by Q-Zar, 79. Plasterer and carlisle sports Empor ium have reta ined the penefits conferred upon them by Q-Zar, and indeed have used the confidential and proprietary information given to them by Q-Zar in building and operating a laser tag facility which directly competes with Q-Zar. BO. It would be unjust and inequitable to permit Plasterer and Carlisle sports Emporium to continue to retain the benef.its conferred on them by Q-Zar without payment of value. B1. Counterclaim Defendants' unjust retention of the benefits conferred upon them by Q-Zar is outrageous, warranting an award of punitive damages. WHEREFORE, counterclaim plaintiff Q-Zar Franchising, Inc. demands jUdgment in its favor and against counterclaim defendants Keith Plasterer and Carlisle Sports Emporium, Inc., compensatory and punitive damages in excess of $25,000, an injunction prohibiting the continued use, possession, and/or communication of 16 6, In addition to receiving the Deposit Agreemenllll1d lhe deposll check, defendwlIal60 alleges\n its cOllnlerclalm thulll volunlurlly dellvercd 10 Counlercluim Defendwlls certahlmalerlals which defcndWlInow contends urc proprlctury lrude secrets, 7. The counlercluim udmhs thatlhcre were no wrlllenagreemenls rellardlnll the use of lllleged trude secrets. Sl:.I: countercluim ut '1 36. 8. As set forth herein, defendunt's new muller und eounterclulm fulls 10 sUlisfy lhe Pennsylvllnia Rules of Civil Procedure with respect 10 pleuding such claims and, lherefore, plaintill's prellmlnl1l)' objections should be sustulned WId the new maller and counterclaim should be dismissed with preJ udice. A. Demurrer To Count I GfThe New Muller And Counterclaim (Pa.R.C.P. I028{a){4) 9. Counlerclaim DefendwlIs ineorporale by this reference paragraphs I lhrough 8 above lIS if fully set forth atlenglh herein, 10. In Count I of its new muller llI1d counterclaim, defendlll1t purports 10 slale a claim for breach of lhe Deposit Agreement. I I. As suppon for the allegations of breueh, dcfendant alleges thaI Counterclllim Defendants breached a duty of good faith und fair dealing by misappropriating or misusing confidential WId proprietary inlonnation and by failing to enter into a frlll1chise agreement. ~ new maller and counterclaim ut '1'1 48-50. 12. The Deposit Agreement directly eontmvencs all of the allelled obligations of Counterclaim Defendants identified in Countl of the new maller and counterclaim. Specifically, the Deposit Allreement expressly states that all nellotiations between defendant and Counterclaim PIIII.I\40?l8.1 DefendonlH will hove ended aileI' sending fourteen doy wrlllen notico of tenlllnotion of Ihe agreement and that "neither party shall have any further lIablllly or oblillatlon whotsoe\er 10 Ihe other." s.cs plaintlll's complailll at Exhibit "A". 13. Defendunt docs not dispute thut Ihe required notices were sent by Countel'c1ahn Defendants, that allnellolilltlons bel ween defendllnlllnd Counlerclalm Defcndanls tenninated and thatnellher I)arty has any liability or oblillathm whatsoever 10 the olher except lor retunl of the deposit monies. 14. By virtue of the forelloinll, the allellatlons ofallclled breach ofcontractldcntllled In Count [ of the new mailer lInd counterclaim fall to stahl a claim upon which relief can be gronted because they arc expressly overidden and invalldllted by the lenns oflhe Deposll Agreement ratllled by defendant. WHEREFORE, Counterclaim Defcndllnts respectfully request that their prellmhlluy objections 10 Count [ of the counterclaim bc sustained and that Count I be dismissed for failure to stote a claim upon which rellefcan be grunted togclher wllh such other WId further relief 115 the Court deems just and proper. B. Demurrer To Count II GfTbe New M~lIer And Counterclaim (Pa.R.C.P. 1028((\)(4)) 1 S. Counterclaim Defendants Incorporate by this reference paragraphs I through 14obovc 115 if fully set forth atlenllth herein. 16. Count II of the new mailer and counterclaim purports to state a claim for fraud against Counterclaim Defcndanls. P11I1.I140928.1 ,I 'I , , , " /1-,,; , " :', " , II I I , , " !.i /, , , , , , 'I , , , Ii i'I' " 'JI i I " , , , , 1" " " I , " I , , " , I"~ , , , , , , Ii / I , , " , I " ;;, ~.' '1/1 8 . ,~ ~~ g l! 2R, I, , I ~ ~ , 11111111 , , !! '1'1 I , , " t,,' " " " 'I I:' , ' I, I " , , " 1,.1 , , , , 'I " I " , , ,'I, I , Ii:: " , /, , , , , ;! J', ,j! , " I' (, "".1 I, , I " , 'I " ill I , I,',; I'll I'i: :, , , I , ; 2. Denied. The Answer, New Matter, and counterolaims filed by Q-Zar ar.e in writing and speak for themselves. Aocordingly, any characteri~ation of them is speoifioally denied. 3. Denied. The agroement attachod as Exhibit ^ to the Complaint is in writing and speaks for itself, Accordingly, any Qharaoteri~ation of it is specifically denied. By way of further response, the agreement does not define the "the relationship between counterclaim Defendants" and Q-Zar, 4. Denied. The agreement attached as Exhibit A to the complaint is in writing and speaks for itself. Accordingly, any charaateri~ation of it is specifically denied. 5. Denied. The Answer is in writing and speaks for itself. Accordingly, any characteri~ation of it. is specifically denied. 6. Denied. The Counterclaims are in writing and speak for themselves. Accordingly, any characteri~ation of them is specifically denied. 7. Denied. The Counterclaims are in writing and speak for themselves. Accordingly, any characteri~ation of them is specifioally denied. By way of further response, the Counterclaims contain no such admission. S. Denied. The averments of paragraph 8 are conclusions of law to Which no response is required. By way of further response, Q-Zar's New Matter and counterclaims fully satisfy the Pennsylvania RUles of civil Procedure. A. Demurrer to Counttirclaim Count-JJ. 9. Q-Zar incorporates by reference the foregoing Paragraphs 1 through 8 as if sot forth heroin in full. 10. Denied. Counterclaim Count I is in writing and speaks for itself. Accordingly, any characterization of it is specifica lly denied. By way of furthor rosponse, Countercla il1l Count I is not directed solely to the Deposit Agreement. 11. Denied, Counterc la im Count I is in writing and speaks for itself.. Accordingly, any charac:terlzation of it is specifically denied. 12. Denied, The averments of paragraph 12 are conclusions of law to which no response is required. By way of further response, the Deposit Agreement does not preclUde the claims set forth in Counterclaim Count I. Moreover, the Deposit Agreement is in wl:"itin'l and speaks for itself, Accordingly, any characterization of its contents is specifically denied. 13. Admitted in part and denied in part. Q-Zar admits that Counterclaim Defendants sent a notice to Q-Zar, but deny that it was sufficient or relieved Counterclaim Defendants of liability. Q-Zar admits that negotiations between Q-Zar and Counterclaim Defendants have ceased. However, it is specifically denied that Counterclaim Defendants Plasterer and Carlisle sports Emporium have no liability or obligation to Q-Zar. To the contrary, Counterolaim Defendants are liable to Q-Zar for breach of their obligations to Q-Zar. 14. The averments of paragraph 14 are conclusions of law to which no response is required. By way of further response, counterolaim Count I states a claim upon which relief can be qranted. This olaim is not in any way ovorridden nor invalidated by the terms of the Deposit Agreement. WHEREFORE, Counterolaim plaintiff O-Zar requests that the Court overrule Counterclaim preliminary objection to Count I, B. Demurrer to counterclaim-IlL 15. Counterclaim Plaintiff Q-Zar incorporates the foregoing paragraphs 1 through 14 au if set forth fully herein. 16. Denied. Counterclaim Count II is in writing and speaks for itself, Accordingly, any characteriution of its contents is specifically denied. 17. Denied. Counterclaim Count II is in 'liriting and speaks for itself. Accordingly, any characterhation of its contents is specifically denied. By way of further response, nothing in Counterclaim Count rI is inconsistent with the Deposit Agreement. 18. Denied. The averments of paragraph 18 are conclusions of law to which no response is required. By way of further response, the Deposit Agreement is in writing and speaks for itself. Accordingly, any characterization of its contents is specifically denied. 19. Denied. The averments of paragraph 19 are conclusions of law to which no response is required. By way of further response, Q-Zar did reasonably rely on Counterclaim Defendants' misrepresentations, which are actionable at law. respectfully Defenda.,ts' 20. Penied. 1~o ovorment of paragraph ~o is a oonolusion of law to whioh no roaponsu lu roquired. 2l. Deniod. 'I'ho I1vurmo"ts of paragraph 21 aro conclusions of law to whioh no rOllponso it! required. By way of further response, Counterclaim Count 11 identifies with suffioient particularity the fraudulent misrepresentations made by Counterolaim Defendants, WHEI\EFORE, Countorc la im PIa int iff Q-Zar requests that the Court overrule Counterclaim Preliminary Objection to Count II. C. Demurrer t9~nt III, 22. Counterc la im Pla intiff Q-Zar incorpor/,ttes herein the foregoing paragraphs 1 through 21 as if sot forth in full. 23, Denied, Counterclaim Count III is in writing and speaks for itself. Accordingly, any charllcterlzation of its contents is specifically denied. ~4. Denied. The averments of paragr~ph 24 are conclusions of law to which no response is required. By way of further response, the mere fact that Q-Zar delivered proprietary information to Counterclaim Defendants does not preclude reoovery on Counterclaim Count III. 25. Denied. The avorments of paragraph 25 ore conclusions of law to which no ro~ponse is required. By way of further response, the parties did enter into a written agreement relating to the alleged trade secrets. Counterclaim Defendants are not in any way, shape or form exempt from liability by the terms of the Deposit Agreement, respectfully Defendants' 26. Denied. 'rhe IIverments ot paraqraph 26 are oonolusionll of law to which no reoponse is required. By way of furthsr response, Counterclaim Count III stlltes a olaim upon whloh relief oan be granted, WHEREFORE, counterclaim Plaintiff Q-Zar respectfully requests that the Court overrule Counterclaim Defendants' Preliminary Objection to Count III. D. Demurrer to Count I~ 27, Counterclaim Plail1tiff Q-Zar incorporates herein paraqraphs 1 through 26 as if set forth in full. 28. Denied. Countercla im Count IV is in wr i tiJ'!g and speaks for itself, Accordingly, any characterhation of its contents is specificallY denied. 29. Deniud, The avorment of Paragraph 29 is a conclusion of law to which no rosponse is required. By way of further r~sponse, the Pennsylvania courts have recogni2ed a cause of action for procurement of information by improper means. 30. Denied. Counterclaim Count IV is in writing and speaks for itself. Accordingly, any characteri2ation of it is specifically denied. By way of further response, Counterclaim Count IV is not duplicative of. claims and rolief sought in other counts. 31. Denied. The avorment of paragraph 31 is a conclusion of law to which no response ls required. By way of further response, counterclaim Count IV is not inconsistent with tho terms and conditions of the Deposit Agreement in any way, shape or form. 32. Denied. The averment of paragraph conolumion of law to which no re~ponse is required. further response, counterclaim Count IV states a olaim relief can be granted. WHEREFORE, Counterclaim plaintiff Q-Zar requests that the Court overrule counterolaim Preliminary Objection to Count IV, E. Demurrer to couqt V~ 33. Counterclaim Plaintiff Q-Zar inoorporates herllin the foregoing paragraphs 1 through 32 as if aet forth in full. 34. Denied, Counterclaim Count V is in writing and speaks for itself. 35. Admitted in purt und denied in part. Q-Zar admits that the proprietary information was voluntarily delivered. However, Q-Zar specifically denies that this precludes recovery. 36. Denied. The averments of paragraph 36 are conclusions of law to which no response is required. By way of further response, Q-Zar does not admit that no written agreement was ever entered into between the parties with respect to delivery of proprietary information. On the contrary, the parties' agreement prohibits Counterclaim Defendanta' possession and use of Q-Zar's propr ietary J.nformat ion, wh ich possession and use has occurred to the benefit of Counterclaim Defendants ilnd at the expense of Q-Zar. 37. Denied. The averment of paragraph oonclusion of law to which no response is required. J 2 is a By way of upon Which reepectfully Defendants' 37 is a By way of further reeponse, counterolaim Count V states a olaim upon whioh relief can be granted. WHEREFORE, counterclaim Plaintitf Q-Zar requests that the Court overrule Counterolaim Preliminary Objection to Count V. F. Demurrer to Count VI. 38. counterclaim Plaintiff Q-Zar incorporattis herein paragraphs 1 through 37 as if set forth in full. 39. Denied. counterclain, Count VI is in writing and speaks for itself, Accordingly, any attempt to charaoterize it is specifically denied, 40. Denied. The averment of paragraph 40 is a conclusion of law to which no t'esponae is required. By way of further response, recovery in quasi-contract is available as an alternative theory in this case. 41. Admitted in part and denied in part. Although there is a Deposit Agreement, the existence of this agreement does not respeotfully Oefendants' preclude recovery on an unjust enrichment theory. Accordingly, the implication in paragraph 41 that no claim could be made is specif ically rienied. 42. Denied. The averment of paragraph 42 is a conclusion of law to which no response is required. 43. Denied. The averment of paragraph 43 is a conclusion of law to which no response is required. " , I I ,,' ", " , I' 'I I' " I , " I' Ii , , ~ r::l '.- ct '. I h {'!l ~;~~~ I' " ~;' .... ' )il, C,' .,~ ~il ,~... ,....,' " ' ~. " >1 m ','I!J 'I ~~: I .J~ :r~ ::\ 1 ,"I , " [1- ~, , ~ " .., II. r-' 'ii, 0 U1 I, I " " I, " "I " I, , " I, " , ,I , ,