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Defendant was notified by the tenus of the Commercial Lease that a Confession of Judgl11ent Clause was contained therein. The remainder of the allegation is a conclusion ofincorrect law, 18. Admilled. 19. Denied. All necessary notices were served upon the Defendunt. It is denied that uny right of Defendunt to a hearing or due process has been violated. 20. Denied. The Confession of Judgment Clause specifically pel111its acceleration of all fees, expenses and costs. 21. Denied. The Confession of Judgment Clause specifically pennits the acceleration of all fees, expenses and costs. Thc leusc statcs that its beginning date is April. Defendunt has admitted occupying the premises ITom April I, 1997. Dcfcndant hus not paid his sccurity deposit, has not paid his rent und has not provided the necessary documentation with regard to protection of the premises. 22. Admitted. 23. Admitted. 24. Denied. The Cumberlund County Prothonotary's Office hus a procedure whereby the Plaintiff must provide self.addressed stamped envelopes to thc Dcfcndunt in cases of this sort, Sueh selfaddrcssed stamped envelopcs werc providcd to thc Prothonotary. Thc Prothonotary's Clerk has confinncd by telcphonic communication that writtcn notice of the entry of the judgment was delivered to the Defendant in the ordinary course of the operation of the Prothonotary's Office on August 20, 1997. 'I: " v. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYL VANIA : NO. '1'1- 1/-':; '+0 : IN LAW : CONTRACT ROBERT C. FITTING, JR" Plalnllff RODNEY LEE FAILOR. JR., Defendant NOTICE UNDER RULE 2973.2 OF JUDGMENT A~D EXECUTION NOTICE OF DEFEND..\NT'S RIGHTS To: Rodney Lee Failor. Jr. A judgment lor possession of real property has been entered Jgainst you and in favor of the plaintiff without prior notice Jnu heuring bused on a confcssion ofJuJgment contained in a promissory note or other document allegedly executed by you, The sheriff may remove you from the property at uny time ufter thirty days after the Jatc on which this notice is served on you. Youll1ay have legal rights to dc:t'eatthe Judgment or to prcvent your being removed from the property. ANY PETITIO:-l SEEKI:\G RELIEF FROM THE Jl'DGl\IE:-IT :>'IL'ST BE FILED WITHIN THIRTY 130) DA YS AFTER THE DATE ON WHICH THIS :\OTICE IS SERVED ON YOU OR YOU :'vIA Y LOSE VOL'R RIGHTS, YOU SHOULD TAKE THIS PAPER TO VOL'R LA WYER ,\ T O:\CE, IF YOC DO NOT HAVE A LA WYER OR CANl':OT AFFORD ONE. GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OCT WHERE Val' CAN GET LEGAL HELP: :-, V) r= Lr.; N -.. ;::: .. 5.... ~~{' ~ .':)Ct~ - ,4., \~ .s: .... .~~~ " :\;:..! (, -::l ~,' It) ., N )~ u:; ';'; ~ -;I:J.l - .,j- ... ~' .. ,... ,... :J u C". u Cumberlund County Lawyer Referral Service Court Administrator Cumberland County Courthouse Carlisle. P A 17013 ( 717)240-6200 2.tJ 1 David T, Kluz. Esquire [,0, Ii 18005 212 Locust Street. Suite 404 Harrisburg. PA 1710 I 1717) 2.18.8183 Attorney t'or Plaintiff &~'I'o~t " ~. ~;; 0;" r~ ...cJ f', a!~J III' , " , , ! j ".\, I: , : ,.,f' 'f', I",' I!' II;' . I, I I " " ('"., , , , I..~~ U ... ~ ~~ ... .... ..., I': ~ 0 ~~ .... III ~ ~ . ~ . ~ ~~ . . 5 ! ~ 1'3 ~ a ~ ~ ~ . . ~ i i w g ~ . ~ ~ . r ~~ > "'" ~ ~ ~ i t~ ~[ H ~ ~ ~~ ~ ~ ~ " ...i ,! ~ " . < g ~ () g ~ m i ~ N if :<: ;; ~ :e 0 H I ~ .. ~ . \ ~ '!i'! ,J ,I ;I, 'J " , ',1, ,I I, IV..,,,,,,,,"..,,.......,,...........,.........."..........'''.'''''''........... ATTOIVlIY D119ld T. K1uI" ATTQIINIVAT I.AW I -" .,. LCOUIT ITI'lIKf, 1U1.... ~, , IoIAIl"IUUI'ICI. ~.VI.VNlIA ,.,'11'1' " . mn ...,M :'i" , , ,- '-,' ~, . , . r ; .,".-;.'j.....iI~_V , " 1'-' Id! 1,'i,'_'L 'u I -:,:,-,I:!,~{_f)~'~Wd/.t:-';.-,':"-I/J;I:_li:j;:L -:.'! ~':_: :!' 1.,:-,_: ~ _ _ _ r. ;.:.:.-; .i'.';y:i ,I, '! ,MDOHINII'...,...,ntAtTMIWl'ltlll."".., II : .\\'--:I-__,~~OP1'HI~"'''-''! _~i.l:-1' 'j,_,:_~,'"I.-!,:'- -- - ":--II';,,..;,;_~__:,! ~,,{ "l'i,~t',i;'i.''';''''''''':~': ........ "-,i':,,":!;;,,", .~.i::~Jij) ,,'" ~~','" ~! 1, ,'J '/'" _' - TO......"......'''.'''..''...''''........"......''''''..'''''.................... YOU />M HlNIV HOT1~IID TO I'lIAD TO THIIN> CIJlIID WITHIN TWlNTY ~ DAve DI' 11- _ O!I DEFAULT JUDQIMINT MAY IIINTIND AOAINIT YOU. ... , " I I ~ , , " " !' " . ., , " ,I,' " , , 1 ~, " " . '. , " I ',I \ . \. " " " " '\ " , ,. " . - ..;..'Co..,::-Jl,....,.... , . ,WI DO.....V CI/ITIN THATTHI WITHIN Ie A ~ Nto CllIlMar ~ ~ THI ClIIlIINAI.PIUlIIH n.- ~. ty'r..'''...''....t-...............'.''.I..............''..............\...0....... ,,' A'rC~8_ ','>I h-'h'; , . , , I , , i , \ . I , '." I , , i! , " ,'I ", .' . ., , ,I " " Da9id T, Kluz , ATTOANBV AT LAW .1. LOQUaT aTAallT. aUITa - HMAII8UAO, paNN8VI.VANIA "'0' ell7) .-,n , ' ~'Mi.Mimv..NOTiiiO.TO'N'Aii"TO:TJi.iH: Cl.ClIID ymHlN lWINT'I PIOI DAn Of IlI/IVlCI ...., OI'IIlII'AULT olUOCIIMIN1 lAAV IIIHT1M11 ,~'IOU. ' . , -, IV..............................""......"'''..."........,......''.........''..' ATTCIINI\' . ;." ... . . . --~. :"::.,....-- -- ----" ,- ~.",-,- ..:.;.:.::;:;:- \ n 6. Th~ Initial agr~~m~nt h~tw~~n th~ purtl~s Inelud~d monthly r~nt at On~ Thousund Dolllll's and 00/100 ($1,000.00) p~r month alld u wuivcr of a s~eurlty deposit in exehung~ lor D~lcndunt r~movlng lt~ms. gu.huge WId junk fhull th~ resid~nce and taking ~llorts to r~palr walls, e~i1lngs WId certuin plumhing fixtures, 7, Upon Defcnduut ~Ilectuuting repuirs to the walls, ceilings WId certain plumbing fixtures In th~ r~sid~ntial dwelling. Dclendunt discovered thatlhe heating sysl~m was still not in working order, Upon further invcstigation Defendanland also discovered extensive dwnage und d~teriorution to c~rtain primury utility systems which wus previously undisclosed to Delcndunt. including a faulty WId deteriorating c1ectrical system. and a leaking roof 8. DclendlUll orally notified Plaintiff of such deficicncies in the electrical system und roof and rcquested that such items be repaired in conjunction with the repair to the h~ating system. to which Plaintiff responded hy agreeing to ellcctuatc thc neccssury rcpairs. 9. Dcfendant has completcd significant rcpairs to the residcntial dwelling, including repair and painting of walls. cciling, rcplaccm~nt of faulty bathroom and kitchcn fixtures and replaccment of cxtcnsive faulty plumbing. 10. On or about Junc 23. 1997, thc parties m~t in Plaintiffs office to fonnaliz~ their prior oral agrccmcnt in the 'orm of a writtcn Icase. At the mceting, the Plaintiff prescnted an "Agrcement of Commcrcial Lease" (hcrcinal\er referred to as "Leasen) for Defcndant's signature. A copy of the Lease is attached hereto as Exhibit" A" and incorporated herein by this reference. II. Unreprcsented by counsel, and believing that the written Lease contained the swne terms and conditions as the parties prior oral agreement, Detcmdant proceeded to sign said Lease. 12. In contravention to the prior oral agreement between the parties, the written Lease did not contain a waiver of a security deposit in exchange for certain improvements made by the Defendant. 13. In IIddition, to date Plaintitl' has tillled to provide repair or replacemcntof uny of the detective or absent utilities, including repair or replacement of the residential heating system, electrical system and leuking ruof. 14. Plaintitl. has nHlterially breached Defendant's implicd warrunty of habitability by tailing, after receiving notke from Detendant, to provide repair or replucement tor uny of the detective or absent utilities, including tililure to repair or replace the residential heating system, electrical system und leaking roof at the residential dwelling. 15. The written Lease, although entitled "Agreeml:nt of Conunerciul Lease," also included not only u three.bay garage to be used tor commercial purposes, but also a two-story frame residential dwelling in whkh Detendant und his family had been residing since approximately April I, 1997, and continue to reside presently. 16. Contained in paragraph sixteen (16) of said Lease is a provision allowing PlaintitT to confess judgment against Defendant by any attorney of record, which confession of judgment is not limited to the three-bay garage und commercial buildings on the premises. 17. Plaintitl' gave no disclosure to Delcndant of the provision for confession of judgment in the Lease und Detendant was not represented by counsel and did not understand the nature and effect of contession of judgment provision. Ther.:fore, Defendant could not provide a knowing and intelligent waiver of his due process rights. 18. On or about August 20, 1997, without prior notice, Plaintitl' filed in the Office of the Prothonotary a Complaint for Confession of Judgment aguinst Defendant in the anlount of Forty.Two Thousand Three Hundred and 00/100 ($42,300.00) Dollars hased upon the tenns of the written Lease 19. By failing to disclose the provision for confession of judgment against Defendant, and including und executing upon said confession of judgment relating in party to a residential dwelling, Plaintitl' has unduly violated Defendant's right to a hearing and Due Process. 20. Plaintilf. In his Complaint li.Jr Conlesslon of Judgment against Delendunt, Improperly calculatcd dwnages by Including the lillI value of the unused portion of the lellSe without applying II fitlr rental value to Dctendunt's credit. 21. Plaintill; in his Complllint flJr Confession of Judgment against Dclendunt, improperly calculated dunlages by applying intel'est from April I, 1997, on the entire wnountto be paid over the tenn of the lease, 22. On or about August 20, 1997, Plaintitl'tiIcd in the Otlice of th., Prothonotary a Conlession of Judgment against Dctendunt in the wnount of Forty-Two Thousund Three Hundred IInd 00/ I 00 ($42,300.00) Dollars. 23. On or about August 20, 1997, Plaintill' tiled in the Otliee of the Prothonotary, a Notice under Rule 2973,2 lJf Judgment and Execution, which notice WIIS directed to the attention of the Defendant. 24. Plaintiff did not tile II Certificate of Service or WlY other certification documenting service of said notice on the Defendunt. 25. At no time did Defendant receive service of said Notice under Rule: 2973.2 of Judgment and Execution made upon the Defendant as required by Pa.R.C.P. 2973.2. 26. DefendWlt was first made aware of WlY pending legal action relating to the Lease on or about October 17, 1997, when Plaintifl's attorney, David T. Kluz, personally served a Notice to Vacate Premises, a copy of which is attached hereto as Exhibit "B" WId incorporated herein by this reference. 27. On or about October 17, 1997, Plaintiff tilcd in the Office of the Prothonotary a Praecipe for Write of Execution Confessed Judgment against Defendunt in the amount of Forty Three ThousWld Three Hundred Eighty WId 00/100 ($43,380) Dollars. 28. On or about October 17, 1997, the Office of the Prothonotary issued a Writ of Execution and/or Attachment. 29, On or ubout October 29, 1997, service of suld Writ of Execution and/or Alluchment Willi mude upon Defimdunt ut 229 Mill Street, Mount Holly Springs, Pennsylvania by the Cumberland County Sheri 11' Deportment. 30. On or ubout October 30,1997, Pluintifl'uniluterully secured the three-buy glll'age building where Defendant WlIS operllting his uutomotivc business by use of padlocks, thereby preventing uccess by Defenduntto his bw;iness and u portion of the leuscd premises. 31. Bused on the ubove, it uppeurs from the record thut Plulntifl's Notice under Rule 2973.2 of Judgment and Execution was not properly served as required Pu.R.C.P. 2973.2. Accordingly, the Confession of Judgment against dcfendant WIIS entered impropcrly and must be stricken. WHEREFORE, Defendant Rodney Lee FlIilor respectfully rcquests that this Court strike oft. the confessed judgment and issue u rule uguinstthe ubove-numcd pluintiffto show cause why the judgmcnt entered in thc abovc.cntitlcd action should not be opened, and further stay the current ull eurrcnt proceedings relating to this matter induding the Writ of Exccution issued against Dcfendant. Respectfully submittcd, IRWIN, McKNIGHT & HUGHES B~---~kL) )~ ~cAnnent, EsqUire 60 West Pomfrct Street ClII'lisle, Pennsylvaniu 17013 1.0. No. 77946 Attorney for Defendant, Rodney L. Failor November 14, 1997 e:Y AGRBBMEN'l' OF COMMERCIAL LEASE THIS AGREEMENT, made this 2. '7 day of :J;,,~ , 1997, by and between ROBERT C, FITTING, JR., of 4530 Coventry Road, Harrisburg, Dauphin County, Pennsylvania 17109, hereinafter called Lessor, tel'" and R r J'y .>>j-/r.'" sr. #1.;;"11,,;;''5; RODNEY LEE FAILOR, of R.D. ~ ~, C:lFlillle, Cumberland County, Pennsylvania 1791s, hereinafter called Lessee. /,)(1& ;>- PREMISES and USE: WITNESSETH: That Lessor, in consideration of the rents hereinafter cOlfenanted to be paid by the Lessee, and in consideration of the covenants hereinafter stipulated to be performed by the Lessee and in consideration of the mutual covenants and agreements hereinafter mentioned, does hereby demise, let and lease unto the Lessee, for the purpose of operating an auto repair facility on Mill Street in Mt. Holly Springs. Pennsylvania, described as follows: BEGINNING at a point in the center line of the public road leading from Boiling Springs to Mount Holly Springs (Route No. 21009) at line of land of Robert C. Fitting and Sidney Roth; thence by said centerline, North 70 degrees 45 minutes East, 366.64 feet, more or less, to the line of land now or formerly of A.S. Otto; thence by the same, South 17 degrees 45 minutes West, 198 feet, more or less, to the westerly right-of-way of the Gettysburg and Harrisburg Railway Company; thence along said right-of-way line, South 26 degrees 30 minutes West 520 feet, more or less, to the line of land of Fitting and Roth aforesaid; thence by the latter land, North 03 degrees 59 minutes East 533.16 feet, more or less, to the Place of BEGINNING. THE ABOVE described tract of land has thereon erected a two- story frame dwelling house and a three-bay garage building and a shed, and other improvements, all of which are known and numbered 228 Mill Street, Mt. Holly Springs, pennsylvania 17065. 1, TE~ Said premises are leased for a term of three (3) years beginning the first day of April 1997, and ending the thirtieth day of April 2000, upon the covenants and conditions hereinafter set forth. 2. RENT: The Lessee shall pay to the Lessor as rent for the leased premises during the term of t~~ the total sum of Thirty-Seven Thousand Eight Hundred ($ 3~,.00.~6) Dollars, payment in monthly installmentB of one&Sand Dollars ($~~OOO.~on) for the first year; One 'l'housand llars ($ 1,000. OQJ f\(or the second year.; and One Thousand d Dollars ($ 1,~~00) for the third year; with the first payment due on April 1, 1997, and each successive payment due and payable the first day of each calendar month during the term of this lease. 3. LATE AND SERVICE CHARGES: A late charge of ten percent (10%) of the amount of rent due for the monthly rental period shall be assessed for any payment not made within ten (10) days after the date it is due and a service charge of Twenty-Five Dollars ($ 25.00) will automatically be made for each instance in which a check is returned unpaid by the Lessee's bank for any reason whatsoever, I f Lessee pays by personal check and more than one check is returned for insufficient funds or for any other reason, Lessor has the right to demand cash, a certified check, cashier's check or money order in payment of full future rents. 4, SECURITY DEPOSIT: Lessee has this date deposited with Lessor the additional sum of Two Thousand Dollars ($ 2,000.00) receipt of which is her.eby acknowledged by Lessor as security for the full and faithful performance by Lessee of the aforementioned terms, conditions and covenants of this lease on Lessee's part to be performed and kept and for the cost of, inter alia, any trash removal, house c leaning and repair or correction of damage in excess of normal wear and tear, This security deposit or any balance thereof shall be returned without interest after the Lessee has vacated and left the premises in an acceptable condition and surrendered all keys and if the Lessee shall have made all payments due hereunder and performed all such covenants and agreements contained herein. If Lessor determines that any loss, damage or injury chargeable to the Lessee hereunder exceeds the security deposit, the Lessor, at his option, may retain the said sum as liquidated damages or may apply the sum against actual loss, damage or injury and the balance thereof will be the responsibility of Lessee. It is further understood and agreed that the said security deposit is not to be considered as the last payment under this Lease, but that should the Lessee be in default in the payment of any rent herein reserved or any portion thereof, Lessor may at Lessor's option appropriate and apply any portion of the security deposit as may be necessary to the payment of the overdue rent or other sums expressly constituting rent hereunder. 2 5. ACCEPTANCE and DELIVERY: Lessee acknowledges that he has examined the leased premises and his acceptance of this agreement is conclusive evidence that said premises are in good and satisfactory order and repair unless otherwise specified hereinl and the Lessee agrees that no representations as to the condition of the premises have been made and that no agreement has been made to redecorate, repair or improve the premises unless hereinafter set forth specifically in writing. The Lessor will deliver the leased premises and all common areas in a clean, safe and sanitary condition, free of rodents and vermin and in complete compliance with all applicable laws. 6. SPECIAL PROVISIONS: conducted on the premises except of an auto repair facility. No salvage operations are to be those incidental to the operation 7, LESSEE'S DUTIES: will, without demand: a. REN~ Pay the rent and all other charges herein reserved as rent, on the days and times that the same are made payable, without fail, and if Lessor shall at any time or times accept said rent or rent charges, or other required payments, after the same shall become due and payable, such acceptance shall not excuse delay upon subsequent occasions, or constitute or be construed as a waiver of any of Lessor's rights, including Lessor's right of distraint and other process. Lessee covenants and agrees that he b. GOOD ORDER and REPAIR: Keep the demised premises in good repair during the term of this lease, reasonable wear and tear and damage by accidental fire or other casualty not occurring through negligence of Lessee or those employed by or acting for Lessee alone excepted. The Lessee agrees to surrender the demised premises in the same condition in which he has herein agreed to keep the same during continuance of this lease. c, SIDEWALKS and TRASH: Keep the demised premises, including the sidewalk in a clean and orderly condition at all times. In addition, Lessee shall be responsible for garbage or trash removal, and for removal of snow and ice in accordance with Borough and/or other applicable ordinances. d. UTILITIES: Pay the following utilities as the same become due and payable: The Lessee is responsible for the payment of all utilities on the premises, including but not limited to electric, oil and water and sewer. 3 e, GOOD ORDER and REPAIRI Lessee further agrees that Lessee is responsible for all repairs of any type whatsoever to the property, including mechanical malfunctions, changes or any other condition which is of major consequence, and Lessor is relieved from any obligation to perform any repairs on said property whatsoever. f. ORDINANCES and REGULATIONS!. Comply with any requirements of any of the constituted public authorities, and with the terms of any statute of the Commonwealth of pennsylvania or the federal government or local ordinance or regulation applicable to Lessee or the use of the demised premises and save Lessor harmless from penalties, fines, costs or Jamages resulting from failure to do so. Lessee shall be responsible for obtaining from the proper municipal, county, state and other authorities such permits as may be required for the operation and maintenance of an auto repair and restoration facility, including all costs associated therewith, including any zoning variances required. Lessee agrees to correct any and all deficiencies found as a result of any inspections performed by any of the constituted public authorities aforesaid and agrees to pay the costs thereof. g, TAXES: Pay any and all taxes due as a result of the operation of said business. Lessee promptly will pay all local property taxes upon presentation of said tax bill and will provide proof of such payment to Lessor without demand. h. CONDUCT OF BUSINESS: That it will not carry on any unlawful or immoral business in or about the demised premises, and will not carryon any business which will endanger the buildings from fire or cause a forfeiture of any fire insurance that the Lessor has or hereafter may have on the buildings. 1. INSURANCE: Carry publ ic liabil i ty insurance and fire, extended coverage, vandalism and malicious mischief coverage on the demised premises, for the mutual benef it of Lessor and Lessee, such insurance to afford protection to the limit of $ 300,000 in respect to the injury or death of a single person, and $ 500,000 in respect to anyone accident, and to the limit of $ 20,000 in respect to property damage. Lessee covenants and agrees to pay the premium charged for such insurance coverage, and Lessee shall furnish certificates of such insurance policy or policies upon each purchase of such insurance, stating therein the number of each policy, the name of the insurer, the amount of insurance under each such policy, and the date of expiration of each such policy, and shall from time to time, whenever required, satisfy Lessor that such policy or policies is or are in full force and effect. Such insurance shall be procured from a reasonable insurance company or companies, reasonably satisfactory to Lessor, and authorized to do business in the Commonwealth of Pennsylvania. 4 In case Lessee shall at any time fail, neglect or refuse to obtain the insurance required by this insurance paragraph, and to keep the same in force as provided therein, the Lessor may, at his option, procure or renew such insurance, but such election by the Lessor shall be at Lessee's expense and chargeable to the Lessee as additional rent. j. PLATE GLASS INSURANCE: Carry in a standard company full coverage insurance on all plate glass in said premises and cause same to be replaced if chipped, cracked or broken, said insurance policy or certificate from Lessee's insurance company to be deposited with Lessor and any such policy to provide that it shall not be cancelled for any reason unless and until Lessor shall be given fifteen (15) days' notice in writing by the insurance company. 8. CONSEN'r: Lessee covenants and agrees that he will do none of the following things without the consent, in writing, of Lessor first had and obtained: s. AFFECT LESSOR'S INSURANCE: Do or suffer to be done any act, matter or thing objectionabl~ to the fire insurance companies, whereby the fire insurance or any other insurance now in force or hereafter to be placed on the demised premises, or any part thereof, or on the buildings of which the demised premises may be a part, shall bocome void or suspended, or whereby the same shall be rated as a more hazardous risk than as at the date of the execution of this lease, or employ any person or persons objectionable to the fire insurance companies, or carry or have any explosive matter of any kind in and about the demised premises, and should any act or neglect of the Lessee or the nature of Lessee's business cause an increase or increases in fire insurance premiums upon the demised premises and/or the buildings of which the demised premises are a part due to an increase in the rate of fire insurance in excess of the rate on the demised premises at the time of the making of this lease, Lessee agrees to pay to Lessor as additional rent said increase or increases. b, ASSIGNME~T: Except as otherwise specifically set forth herein, assign this lease nor sublet the premises or any part of the premises covered by this Lease without the prior written consent of Lessor. c. RENOVATIONS: Make any renovations or structural changes, additions or improvements to the leased premises without having first obtained Lessor's wri tten consent, which consent shall not be unreasonably withheld. Such changes, additions or improvements shall be made at Lessee's expense, and shall become property of the Lessor upon termination of this lease. 5 !}. INSPECTI.QlU Lessee covenants and agrees that Lessor shall have the right at all reasonable times by himself or his duly authorized agents to go upon and inspect the demised premises and every part thereof. ThJ.s provision shall authorize the Lessor to post a "For Rent" sign and to show said premises at reasonable hours to prospective tenants during the last ninety (90) days of the term herein. This provision shall also authorize the Lessor to post a for sale sign at any time during the term of this lease or any renewal thereof and to show said premises at reasonable hours to prospective purchasers. 10, PERSONAL PROPERTYI Lessor shall not be responsible for damage from any cause to personal property of I,essee in the leased premises, and Lessee shall be required to carry his own insurance on such personal property. 11. INDEMNIFICA:J,'ION: Lessee will indemnify the Lessor from all claims, demands and damages for injuries to person or property arising from or in any manner connected with the occupancy or use of the leased premises by Lessee, and from any and all other claims, demands, liens, damages, fines or penalties of whatever name, nature or kind, in any way or manner chargeable to or payable for, or in respect to the use, occupancy or ownership of the leased premises, or from any act or omission of the Lessee, his servants, agents, representatives, tenants, guests, invitees, licensees, customers, or any other person, firm or corporation in or about or adjacent to the leased premises, except insofar as the negligence of the Lessor is the proximate cause of such claims, demands, liens, damages, fines or penalties. Lessee will pay all costs, expenses and attorney's fees incurred by or imposed on the Lessor in prosecution or defense of any suit, action or proceeding predicated upon an alleged breach of any undertaking by the Lessee under the terms of this Lease, or for or which the Lessee has covenanted to indemnify the Lessor under the terms of this Lease, or would be bound by law to indemnify the Lessor. Lessee shall bear, pay and discharge, when and as the same become due and payable, all judgments and lawful claims for damages or otherwise against Lessor or his property arising from injury or damage to the person or property of Lessee, or of any clerk, agent, employee, servant, invitee, customer, licensee or visitor upon the demised premises, or the sidewalks on or adjacent to said property, including injury and damage caused by the operation of Lessee's business or by fixtures, machinery, apparatus or appliances in or upon the demised premises; and will assume the burden and expense of this lease, and will protect, indemnify and save harmless Lessor, his agents, servants, employees, and the public at large, by reason of or on account of the use or misuse of the premises hereby leased, or any sidewalk on or adjacent to the said premises or any part thereof. 6 12, ADDITIONAL RENT. In the event of the failure of Lessee to promptly perform any of the covenants and conditions of this Lease, Lessor may go upon the demised premises and perform such covenants, the costs thereof, at the sole option of Lessor, to be charged to Lessee as additional and delinquent rent. 13, LESSOR'S OBLIgATIONS: he willi Lessor covenants and agrees that a. notification Lessee. REAl, ESTATE TAXES: Provide to Lessee any of real estate tax due on the property for payment by b, INSURANCE: At his own cost and expense, carry fire and extended coverage insurance on the leased premises. All proceeds from insurance for damage or destruction done to the building will be paid to Lessor, and Lessee will have no claim for said proceeds. Lessor is not requiI.ed, however, to carry or maintain insurance on any of the personal property of Lessee, his successors or assigns, 14. premises then: FIRE: In the event of the destruction of the demised bY-fire, water damage, governmental action or acts of God, a, In the event that the demised premises are totally destroyed or so damaged by fire or other casualty not occurring through fault or negligence of the Lessee or those employed by or acting for him, that the same cannot be repaired or restored within a reasonable time, this lease shall absolutely cease and determine, and the rent shall abate for the balance of the term. b. If the damage caused as above be only partial and such that the premises can be restored to the then condition within a reasonable time, the Lessor may, at his option, restore the same with reasonable promptness, reserving the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to enter upon the demised premises whenever necessary to repair damage caused by fire or other casualty to the buildings of which the demised premises are a part, even though the ef,fect of such entry be to render the demised premises or a part thereof untenantable. In either event, the rent shall be apportioned and suspended during the time the Lessor is in possession, taking into account the proportion of the demised premises rendered untenantable and the duration of the Lessor's possession. If a dispute arises as to the amount of rent due under this clause, Lessee agrees to pay the full amount claimed by Lessor. Lessee shall, however, have the right to proceed by law to recover the excess payment, if any. 7 c. Lessor shall make such election to repair the premises or teL1ninate this lease by giving notice thereof to Lessee at the leased premises within thirty (30) days from the day Lessor rece1.ved notice that the demised premises had been destroyed or damaged by fire or other casualty. d. Lessor shall not be liable for any damage, compensation or claim by reason of inconvenience or annoyance arising from the necessity of repairing any portion of the building, the interruption in the use of the premises, or the termination of this lease by reason of destruction of the premises. e. The Lessor has let the demised premises in its present condition and without any representations on the part of the Lessor. It is understood and agreed that Lessor is under no duty to make repairs or alterations at the time of letting or at any time thereafter, except as otherwise provided for in this agreement. 15. DEFAULT: If the Lessee: a, Does not pay in full within ten (10) days from the date it is due any and all installments of rent, and/or does not pay in full when due other charges or payments herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein agreed to be paid by the Lessee, or b. Vacates the demised premises, or removes or attempts to remove, or mani fests as intention to remove any goods or property therefrom otherwise than in the ordinary and usual course of business, without having first paid and satisfied the Lessor in full for all rent and other charges then due or that may thereafter become due until. the expir.ation of the term above mentioned, or c. Fails to observe or perform any of the other terms, covenants or conditions of this lease on the part of Lessee to be observed and performed, which failure persists after the expiration of twenty (20) days from the date Lessor gives notice to Lessee calling attention to the existence of such failure, provided however that if the matter which is the subject of the notice is of such a nature that the same cannot reasonably be corrected within twenty (20) days, then no default shall be deemed to have occurred if Lessee, before the exploration of the twenty-day period from the date of giving of the aforesaid notice by Lessor, commences the curing of the default and diligently prosecutes the same to completion, or B d. Becomes insolvent or makes an assignment for the benefit of creditors, or if a petition in bankruptcy is filed by or against the Lessee, or a bill in equity or other proceeding for the appointment of a receiver for the Lessee is filed, or if proceedings for reorganization or for composition with creditors under any state or federal law be instituted by or against Lessee, or if the real or personal property of the Lessee shall be sold or levied upon by any Sheriff, Then and in any or either of said events, there shall be deemed to be a breach of this lease, and thereupon and without entry or other action by Lessor: 1, The rent for the entire unexpired balance of the term of this lease, as well as all other charges, payments, costs and expenses herein agreed to be paid by the Lessee, including but not limited to legal expenses and attorney's fees, including those incident to the recovery of possession, brokerage and/or putting the demised premises in good order or for preparing the same for re-rental, or at the option of Lessor any part thereof, and all costs, shall, in addition to any and all installments of rent already due and payable and in arrears, and/or any other charge or payment herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein agreed to be paid by the Lessee which may be due and payable and in arrears, be taken to be due and payable and in arrears as if by the terms and provisions of this 18ase, the whole unpaid balance of unpaid rent and other charges, payments, taxes, costs and expenses were on that date payable in advance; and if the lease or any part thereof is assigned, or if the premises or any part thereof is sublet, Lessee hereby irrevocably constitutes and appoints Lessor as Lessee's agent to collect the rents due by such assignee or sublessee, and apply the same to the rent due hereunder, without in any way affecting Lessee's obligation to pay any unpaid balan~e of rent due hereunder, or in the event of any of the foregoing at any time at the option of Lessor; 2. This lease and the terms hereby created shall determine and become absolutely void without any right on the part of the Lessee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken; whereupon Lessor shall be entitled to recover damages for such breach in an amount equal to the amount of rent reserved for the balance of the term of this lease and other charges, payments, CO&ts and expenses referred to in subparagraph 1 hereof. 9 16. RBMEDIBS I forth in paragraph behalf, at Lessor's In 15, the option I the event of any default as above set Lessor, or anyone acting on Lessor's a. May without notice or demand enter the demised premises for the purpose of distraining or levying on any goods or ohattels therein. b. May lease said premises or any part or parts thereof to such person or persons as may, in Lessor's discretion, seem best, and the Lessee shall be liable for any loss of rent for the balance of the then current term. c. If rent and/or any charges hereby reserved as rent shall remain unpaid on any day when the same ought to be paid, Lessee hereby empowers any Prothonotary or attorney of any court of record to appear for Lessee in any and all actions which may be brought for rent and/or the charges, payments, costs and expenses reserved as rent, or agreed to be paid by the Lessee, and/or to sign for Lessee an agreement for entering in any competent court an amicable action or actions for the recovery of rent or other charges or expense, and in said suit or in said amicable action or actions, to confess judgment against Lessee for all or any part of the rent specified in this lease and then unpaid, including, at Lessor's option, the rent for the entire unexpired balance of the term of this lease, and/or other charges, payments, costs and expenses reserved as rent or agreed to be paid by the Lessee, and for interest and costs together with attorney's commission of ten percent (10%). Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of said rent and/or other charges reserved as rent shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the original term and/or during any extension or renewal of this lease. d. When this lease shall be determined by a condition broken, either during the original term of this lease or any renewal or extension thereof, and also when and as soon as the term hereby created or any extension thereof shall have expired, it shall be lawful for any attorney, as attorney for Lessee, to file an agreement for entering in any competent court an amicable action in judgment and ejectment against Lessee, and all persons claiming under Lessee for the recovery by Lessor of possession of the herein demised premises, for which this lease shall be his sufficient warrant, whereupon, if Lessor so desires, a Writ of Possession may iSSue forthwith, without any prior proceedings whatsoever, and provided that if, for any reason, after such action shall have been commenced, the same shall be determined and the possession of the premises hereby demised remain in or be restored to Lessee, Lessor 10 shall have the right upon any subsequent default or defaults, or upon the termination of this loase as hereinbefore set forth, to bring one or more amicable action or actions, as hereinbefore set forth, to recover possession of the said premisos. 17. ~LATIVB EFFBCT~ All the remedies hereinbefore given to Lessor and all. rIghts and remedies given to him by law and equity shall be cumulative and concurrent. No determination of this lease or the taking or recovery of the premises shall deprive Lessor of any of his remedies or actions against the Lessee for rent due at the time, or which, under the terms hereof, would in the future become due, as if there has been no determination, or for sums due at the time of which, under the terms hereof, would in the future become due as if there has been no determination, nor shall the bringing of any action for rent or breach of covenants, or the resort to any other remedy herein provided for the recovery of rent, be construed as a waiver of the right to obtain possession of the premises. Similarly, no exercise of any of Lessor's right given to him by law and equity, or exercisable in accordance with the terms and provisions of this lease agreement, shall deprive Lessor of any of his remedies or actions against th~ Lessee under the terms of the Agreement of Sale referred to hereinabove. 18. SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Lessor's property, to extensions or renewals thereof, and to all advances now or hereafter made on the security thereof. Lessee agrees, on request, to execute such further instruments evidencing such subordination as Lessor may request, and if Lessee fails to do so, Lessor is empowered to do so in the name of Lessee. 19. MECHANICS' LIENS: The Lessee shall have no right to encumber or subject the interest. of the Lessor in the demised premises to any mechanics, materialmens or other liens of any nature whatsoever, and upon the filing of any such lien, the failure of the Lessee to have the same removed from record promptly shall constitute a violation of this agreement and entitle Lessor at this opt.ion to taken any legal action elsewhere in this agreement reserved to said Lessor. 20. FIRE EXTINGUISHERS: Lessee agrees to supply and maintain at his own expense any fire extinguishers or other fire prevention equipment required by law, rules, orders, ordinances and regulations of any city, county or state in which the demised premises are located, and/or required by any underwriters association, bureau or any other similar body having jurisdiction involving said premises. 11 21. SIGNSI Lessee will place no signs, awnings or curtains on any part of the exterior of said premises or on any show window, nor paint any brick or stone work, cornice work, mill work or iron work on the front of said premises without the written consent of Lessor or its agent first had and obtained. Such consent shall not be unreasonably withheld. 22. QUIET POSSF.SSION: It is further understood and agreed, that subject to the terms of this lease, Lessee, paying the rent hereby re6erved, and performing and observing the several covenants hereof, may peacefully hold and enjoy the said premises throughout the duration of this lease without any interruptions by the Lessor, his heirs or. assigns or any person lawfully claiming through him. 23. LESSOR NOT A PARTNER: It is expressly understood that the Lessor shall not be construed or held to be a partner or associate of the Lessee in the conduct of his business; it being expressly understood that the relationship between the parties hereto is and shall remain at all times that of Lessor and Lessee. 24. APPLICATION OF PAYMENTS RECEIVED FROM LESSEE: lessor shall havu the right to apply any payments made by Lessee to the satisfaction of any debt or obligation of Lessee to Lessor according to Lessor's sole discretion and regardless of the instructions of Lessee as to the application of any such sum, whether such instructions be endorsed upon Lessee's check or otherwise, unless otherwise agreed upon by both parties in writing. The acceptance by Lessor of a check or checks drawn by others than Lessee shall in no wise affect Lessee's liability hereunder nor shall it be deemed an approval of any assignment of this lease by Lessee. 25. HOLDOVER: Should Lessee continue in possession after the end of the term herein without renewal as provided for in Paragraph 3 hereof, but with the pennission of Lessor, it is agreed that the tenancy thus created can be terminated by either party giving to the other party not less than thirty (30) days' written notice to expire on the day of the month from which the tenancy commenced to run. In so continuing, Lessee agrees to pay the monthly rental provided for herein and to keep and fulfill all other covenants, conditions and agreements. 12 26. LESSOR'S ENTRY AT BND OP LEASE! If during the last month of the term of this lease or any renewal or extension of the said term Lessee shall have removed all or substantially all of the Lessee's property from the premises, Lessor may, prior to the expiration or termination of the term of the lease without releasing Lessee from any obligations to repair or restore the demised premises or to pay the rent in full, and without any elimination or abatement thereof, immediately enter upon and alter renovate and redecorate the premises. 27. NOTICE I All notices which are required or are permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or sent by United States certified mail, prepaid I (a) If to Lessor, addressed tOI Robert C. Fitting, Jr. 4530 Coventry Road Harrisburg, PA 17109 (b) If to Lessee, addressed tOI Rodney Lee Failor R.D. # 5 Carlisle, PA 17013 Such addresses may be changed at any time and from time to time by like written notice given by either party to the other. 28. OTHER PROVISIONS: The paragraph titles appearing in this lease are for purposes of each reference and shall not be considered a part of this lease or in any way to modify, amend, or affect the provisions thereof. 29. BINDING EFFECT: All rights and liabilities herein given to or imposed upon the respective parties hereto shall extend to and bind the several and respective heirs, executors, administrators, successors and assigns of said parties. No rights, however, shall inure to the benefit of any assignee of Lessee unless the assignment of such assignee has been approved by Lessor in writing as aforesaid. 13 " , , , I " , fj~ F':' " _0 , o~ c:: ~~ I" .. "'."1 lU~;) .:1 t',) '~~ C)".' ". !~) :~. , f ,( ,j-,.. ,.' t--'J ~J... 11i:;J ~t _7 . 'r.) ,. "- " '..-,I. {,j~l rh, :;.,J .J(e i.- F' ~d 1'- ~ ~ U.. r0- O (J" " " , " , " " ,I "I t ,I , it: ..:I' ~ % " - -g" ("'() i" II I~") M ."'~..( (Y) ..3 ,-:)1:.... 8 t;!(-,; :x: ,. ,,,-, .9 ()o ,~'" .1..-, n.. l'.)~i - 1.0 lljl, "j< ~ 1 (-, 0::> ;',1ii 0- "'It ~:> - .ld) 1 j,.:t;_; :~.. :!II:\J II: j 0 ',f ~t.::. U i" z I!J ~ ~ I, , ", " " , , " , I .., , " " in .,: 1-" n 1.\,1 ~ (~. , l....". , , (.1." ~ lL'l r " ~ t l,_ I I' o - .n' - /!) >. f,~,: .:, ~:fJ;;; .... ~i: ::.< ~ ;;! 1/.) .\,1.... ,',~ ;(.. I'll.... ,iJI.l.. 0' '5 .U :r.: CJ,... <'::) - ~- L,~ :;.1:; ~ .:{ a -s.. o o \i> - , Qt ~~ :;~ 3~ " , , " ~ Ii . 8 8 ~ . 0 ~ ~ '11\I ~ ~ i "2 U ~ I' 'r' " Ii ij " " I, ROBERT C. FITTING. JR,. Plaintiff : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY. PENNSYL VANIA v. : NO. 97-4540 RODNEY LEE FAILOR. JR,. Defendant ; IN LAW : CONTRACT PRAECIPE FOR WRIT OF EXECUTION CONFESSED JUDGMENT TO THE PROTHONOTARY: Issue a Writ of Execution in the above maller, directed to the Sheriff of Cumberland County. against Rodney Lee Failor. Jr,. Defendant. )2'1 /Gi, " ,~, IJ{ 4(ly 0H 0'\05 fit 1'/06r REAl. DEBT: {~t'>'V\t( (. Principal sum $ 36.000.00 Interest from April 1, 1997 $ 3.780.00 p~l,ru(O' Attomey's fees $ 3.600.00 (Dl'('J, ~'Ln(,U.J TOTAL DEBT: $ 43,380,00 C~? . NI"''-O I (lJ.<; t( COSTS PAID: r-< d,,~k Y". Prothonotary $ Sheriff $-- Statutory $ TOTAL COSTS: $ AMOUNT DUE: $ It is hereby certified that: , , 1) This praecipe is based upon a confessed judgment; and 2) The Prothonotary is authorized to issue this praecipe because notice will be served with the Writ pursuant to Rule 2873,2. 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"~I ~ q I I' 'I" 1,/ , ~ I ... ,..;''1-.1 '~ .' . -"j II \ .' ,f 'I'; ; " ~'AM'HiMiY"NOTiiDT(r~';:o"'- ' (:l.OIIIl WIlHIII 'lWI/lTY 11IOI DAVI Of iIII'/ICI HIMOI' DR DlJAAT IJDCII""llT t/AV.iNJIIlID ~VOU., " .'1...............................................1....1..........,.....:........... AT'rDI\IIIY DO'fid T. lUua ATTOI'NI'" "T V.W , ' . '1' LOOU.T wr"''''' 'UI~ - , HAA"IUU"D. 'INN....L\lANI" 17101 (717) -'IP , " .. "-".. '. ,- """""".,;,:' .Q;r~~~r..;~ " , t"'1.I+I,,..If..'.,."tjl..I".t.'.I'~..~iV.toIlj..........,,,,..1...,..,.. f, ,~ " , . . ,I '" 'I ji " ,j;~JJ~'tHNk-M~l!tW~~L..,dJ'.. .r- ... . I . ,I", " ( ; , .. I Ii I" " " ,\ ~ II ;-1 \ " , I: , ,~ '_.f,;.:~__ ";,~" r'......-:.,:.~~';-..:;.. , ty AGREEMENT OF COMMERCIAL LBASB THIS AGREEMENT, made this 22-- day of :J;,,~ , 1997, by and between ROBERT C. FITTING, JR., of 4530 Coventry Road, Harrisburg, Dauphin County, Pennsylvania 17109, hereinafter called Lessor, /e.1' and Ii r ,fY >>rlr.'" Jr. It'f./fr//"y",; RODNEY LEE FAILOR, of ~ # S, ('U'li~le, Cumberland County, pennsylvania 1781J, hereinafter called Lessee. I'>(J(,:J- PREMISES and USE: WITNESSETH: That Lessor, in consideration of the rents hereinafter covenanted to be paid by the Lessee, and in consideration of the covenants hereinafter stipulated to be performed by the Lessee and in consideration of the mutual covenants and agreements hereinafter mentioned, does hereby demise, let and lease unto the Lessee, for the purpose of operating an auto repair facility on Mill Street in Mt. Holly Springs, Pennsylvania, described as follows: BEGINNING at a point in the center line of the public road leading from Boiling Springs to Mount Holly Springs (Route No. 21008) at line of land of Robert C. Fitting and Sidney Roth; thence by said centerline, North 70 degrees 45 minutes East, 366.64 feet, more or less, to the line of land now or formerly of A.S. Otto; thence by the same, South 17 degrees 45 minutes West, 198 feet, more or less, to the westerly right-of-way of the Gettysburg and Harrisburg Railway Company; thence along said right-of-way line, South 26 degrees 30 minutes West 520 feet, more or less, to the line of land of Fitting and Roth aforesaid; thence by the latter land, North 03 degrees 59 minutes East 533.16 feet, more or less, to the Place of BEGINNING. THE ABOVE described tract of land has thereon erected a two- story frame dwelling house and a three-bay garage building and a shed, and other improvements, all of which are known and numbered 228 Mill Street, Mt. Holly Springs, pennsylvania 17065. 1. TERM: Said premises are leased for a term of three (3) years beginning the first day of April 1997, and ending the thirtieth day of April 2000, upon the covenants and conditions hereinafter set forth. 2. RENT I The Lessee shall pay to the Lessor as rent for the leased premises during the term of thJ~ the total sum of Thirty-Seven Thousand Eight Hundred ($ 3~,.OO.~O) Dollars, payment in monthly installments of one~sand Dollars ($~OOO~on) for the first year; One Thousand llars ($ 1,0"0. OCU 1\ tor the second year; and One Thousand d Dollars ($ 1,~t.OO) for the third year; with the first payment due on April 1, 1997, and each successive payment due and payable the first day of each calendar month during the term of this lease. 3. LATE AND SERVICE CHARGES: A late charge of ten percent (10%) of the amount of rent due for the monthly rental period shall be assessed for any payment not made within ten (10) days after the date it is due and a service charge of Twenty-Five Dollars ($ 25.00) will automatically be made for each instance in which a check is returned unpaid by the Lessee's bank for any reason whatsoever. If Lessee pays by personal check and more than one check is returned for insufficient funds or for any other reason, Lessor has the right to demand cash, a certified check, cashier's check or money order in payment of full future rents. 4. SECURITY DEPOSIT: Lessee has this date deposited with Lessor the additional sum of Two Thousand Dollars ($ 2,000.00) receipt of which is hereby acknowledged by Lessor as security for the full and faithful performance by Lessee of the aforementioned terms, conditions and covenants of this lease on Lessee's part to be performed and kept and for the cost of, inter alia, any trash removal, house c leaning and repair or correction of damage in excess of normal wear and tear. This security deposit or any balance thereof shall be returned without interest after the Lessee has vacated and left the premises in an acceptable condition and surrendered all keys and if the Lessee shall have made all payments due hereunder and performed all such covenants and agreements contained herein. If Lessor determines that any loss, damage or injury chargeable to the Lessee hereunder exceeds the security deposit, the Lessor, at his option, may retain the said sum as li.quidated damages or may apply the sum against actual loss, damage or injury and the balance thereof will be the responsibil i ty of Lessee. It is further understood and agreed that the said security deposit is not to be considered as the last payment under this Lease, but that should the Lessee be in default in the payment of any rent herein reserved or any portion thereof, Lessor may at Lessor's option appropriate and apply any portion of the security deposit as may be necessary to the payment of the overdue rent or other sums expressly constituting rent hereunder. 2 5. ACCEPTANCE and DBLIVBRYI Lessee acknowledges that he has examined the leased premises and his acceptance of this agreement is conclusive evidence that said premises are in good and satisfactory order and repair unless otherwise specJ.fied herein; and the Lessee agrees that no representations as to the condition of the premises have been made and that no agreement has been made to redecorate, repair or improve the premises unless hereinafter set forth specifically in writing. The Lessor will deliver the leased premises and all common areas in a clean, safe and sanitary condition, free of rodents and vermin and in complete compliance with all applicable laws. 6. SPECIAL PROVISIONS: conducted on the premises except of an auto repair facility. No salvage operationb are to be those incidental to the operation 7. LESSEE'S DUTIES: will, without demand: a. RENT: Pay the rent and all other charges herein reserved as rent, on the days and times that the same are made payable, without fail, and if Lessor shall at any time or times accept said rent or rent charges, or other required payments, after the same shall become due and payable, such acceptance shall not excuse delay upon subsequent occasions, or constitute or be construed as a waiver of any of Lessor's rights, including Lessor's r.ight of distraint and other process. Lessee covenants and agrees that he b. GOOD ORDER and REPAIR: Keep the demised premises in good repair during the term of this lease, reasonable wear and tear and damage by accidental fire or other casualty not occurring through negligence of Lessee or those employed by or acting for Lessee alone excepted. The Lessee agrees to surrender the demised premises in the same condition in which he has herein agreed to keep the same during continuance of this lease. c. SIDEWALKS and TRASH: Keep the demised premises, including the sidewalk in a clean and orderly condition at all times. In addition, Lessee shall be responsible for garbage or trash removal, and for removal of snow and ice in accordance with Borough and/or other applicable ordinances. d. UTILITIES: same become due and payable: payment of all utilities on the t.o electric, oil and water and Pay the following utilities as the The Lessee is responsible for the premises, including but not limited sewer. 3 e. GOOD ORDER and REPAIRI Lessee further agrees that Lessee is responsible for all repairs of any type whatsoever to the property, including mechanical malfunctions, changes or any other conditioll which is of major consequence, and Lessor is relieved from any obligation to perform any repairs on said property whatsoever. f. ORDINANCES and REGULATIONS: Comply wi th any requirements of any of the constituted public authorities, and with the terms of any statute of the Commonwealth of Pennsylvania or the federal government or local ordinance or regulation applicable to Lessee or the use of the demised premises and save Lessor harmless from penalties, fines, costs or damagea resulting from failure to do so. Lessee shall be responsible for obtaining from the proper municipal, county, state and othel' authoritles such permits as may be required for the operation and maintenance of an auto repair and restoration facility, inciuding all cost.s associated therewith, including any zoning variances required. Lessee agrees to correct any and all deficiencies found as a result of any inspections performed by any of the constituted public authorities aforesaid and agrees to pay the costs thereof. g. TAXES: Pay any and all taxes due as a result of the operation of said business. Lessee promptly will pay all local property taxes upon presentation of said tax bill and will provide proof of such payment to Lessor without demand. h. CONDUCT OF BUS~NESS: That it will not carry on any unlawful or immoral business in or about the demised premises, and will not carryon any business which will endanger the buildings from fire or cause a forfeiture of any fire insurance that the Lessor has or hereafter may have on the buildings. 1. INSURANCE: Carry public liability insurance and fire, extended coverage, vandalism and malicious mischief coverage on the demised premises, for the mutual benefit of Lessor and Lessee, such insurance to afford protection to the limit of $ 300,000 in respect to the injury or death of a single person, and $ 500,000 in respect to anyone accident, and to the limit of $ 20,000 in respect to property damage. Lessee covenants and agrees to pay the premium charged for such insurance coverage, and Lessee shall furnish certificates of such insurance policy or policies upon each purchase of such lnsurance, stating therein the number of each policy, the name of the insurer, the amount of insurance under each such policy, and the date of expiration of each such policy, and shall from time to time, whenever required, satisfy Lessor that such policy or policies is or are in full force and effect. Such insurance shall be procured from a reasonable insurance company or companies, reasonably satisfactory to Lessor, and authorized to do business in the Commonwealth of Pennsylvania. 4 In case Lessee shall at any time fail, neglect or refuse to obtain the insurance required by this insurance paragraph, and to keep the same in force as provided therein, the Lessor may, at his option, procure or renew such insurance, but such election by the Lessor shall be at Lessee's expense and chargeable to the Lessee as additional rent. j. PLATE GLASS INSURANCE: Carry in d standard company full coverage insurance on all plate glass in said premises and cause same to be replaced if chipped, cracked or broken, said insurance policy or certificate from Lessee's insurance company to be deposited with Lessor and any such policy to provide that it shall not be cancelled for any reason unless and until Lessor shall be given fifteen (15) days' notice in writing by the insurance company. 8. CONSENT: Lessee covenants and agrees that he will do none of the following things without the consent, in writing, of Lessor first had and obtained: a. AFFECT LESSOR'S INSURANCE: Do or suffer to be done any act, matter or thing objectionable to the fire insurance companies, whereby the fire insurance or any other insurance now in force or hereafter to be placed on the demised premises, or any part thereof, or on the buildings of which the demised premises may be a part, shall become void or suspended, or whereby the same shall be rated as a more hazardolls risk than as at the date of the execution of this lease, or employ any person or persons objectionable to the fire insurance companies, or carry or have any explosive matter of any kind in and about the demised premises, and should any act or neglect of the Lessee or the nature of Lessee's business cause an increase or increases in fire insurance premiums upon the demised premises and/or the buildings of which the demised premises are a part due to an increase in the rate of fire insurance in excess of the rate on the demised premises at the time of the making of this lease, Lessee agrees to pay to Lessor as additional rent said increase or increases. b. ASSIGNMENT: Except as otherwise specifically set forth herein, assign this lease nor sublet the premises or any part of the premises covered by this Lp.ase without the prior written consent of Lessor. c. RENOVATIONS: Make any renovations or structural changes, additions or improvements to the leased premises without having first obtained Lessor's written consent, which consent shall not be unreasonably withheld. Such changes, additions or improvements shall be made at Lessee's expense, and shall become property of the Lessor upon termination of this lease. 5 9. INSPECTION I Lessee covenants and agrees that Lessor shall have the right at all reasonable times by himself or his duly authorized agents to go upon and inspect the demised premiseu and every part th6reof. This provision shall authorize the Lessor to post a "For Rent" sign and to show said premises at reasonable hours to prospective tenants during the last ninety (90) days of the term herein. This provision shall also authorize the Lessor to post a for sale sign at any time during the term of this lease or any renewal thereof and to show said premises at reasonable hours to prospective purchasers. 10. PERSONAL PROPERTY: Lessor shall not be responsible for damage from any cause to personal property of Lessee in the leased premises, and Lessee shall be required to carry his own insurance on such personal property. 11. INDEMNIFICATION: Lessee will indemnify the Lessor from all claims, demands and damages for injuries to person or property arising from or in any manner connected with the occupancy or use of the leased premises by Lessee, and from any and all other claims, demands, liens, damage3, fines or penalties of whatever name, nature or kind, in any way or manner chargeable to or payable for, or in respect to the use, occupancy or ownership of the leased premises, or from any act or omission of the Lessee, his servants, agents, representatives, tenants, guests, invitees, licensees, customers, or any other person, firm or corporation in or about or adjacent to the leased premises, except insofar as the negligence of the Lessor is the proximate cause of such claims, demands, liens, damages, fines or penalties. Lessee will pay all costs, expenses and attorney's fees incurred by or imposed on the Lessor in prosecution or defense of any suit, action or proceeding predicated upon an alleged breach of any undertaking by the Lessee under the terms of this Lease, or for or which the Lessee has covenanted to indemnify the Lessor under the terms of this Lease, or would be bound by law to indemnify the Lessor. Lessee shall bear, pay and discharge, when and as the same become due and payable, all judgments and lawful claims for damages or otherwise against Lessor or his property arising from injury or damage to the person or property of Lessee, or of any clerk, agent, employee, servant, invitee, customer, licensee or visitor upon the demised premises, or the sidewalks 011 or adjacent to said property, including injury and damage caused by the operation of Lessee's business or by fixtures, machinery, apparatus or appliances in or upon the demised premises; and will assume the burden and expense of this lease, and will protect, indemnify and save harmless Lessor, his agents, servants, employees, and the public at large, by reason of or on account of the use or misuse of the premises hereby leased, or any sJ.dewalk on or adjacent to the said premises or any part thereof. 6 12. ADDITIONAL RENTI In the event of the failure of Lessee to promptly perform any of the covenants and conditions of this Lease, Lessor may go upon the demised premises and perform such covenants, the costs thereof, at the sole option of Lessor, to be charged to Lessee as additional and delinquent rent. 13. LESSOR'S OBLIGATIONSI he willI Lessor covenants and agrees that 4. notification Lessee. REAL ESTATE TAXBSI Provide to Lessee any of real estate tax due on the property for payment by b. INSURANCE I At his own cost and expense, carry fire and extended coverage insurance on the leased premises. All proceeds from insurance for damage or destruction done to the building will be paid to Lessor, and Lessee will have no claim for said proceede. Lessor is not required, however, to carry or maintain insurance on any of the personal property of Lessee, his successors or assigns. 14. premises thenl PIREI In the event of the destruction of the demised by fire, water damage, governmental action or acts of God, a. In the event that the demised premises are totally destroyed or so damaged by fire or other casualty not occurring through fault or negligence of the Lessee or those employed by or acting for him, that the same cannot be repaired or restored within a reasonable time, this lease shall absolutely cease and determine, and the rent shall abate for the balance of the term. b. If the damage caused as above be only partial and such that the premises can be restored to the then condition within a reasonable time, the Lessor may, at his option, restore the same with reasonable promptness, reserving the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to enter upon the demised premises whenever necessary to repair damage caused by fire or other casualty to the buildings of which the demised premises are a part, even though the e(fect of such entry be to render the demised premises or a part thereof untenantable. In either event, the rent shall be apportioned and suspended during the time the Lessor is in possession, taking into account the proportion of the demised premises rendered untenantable and the duration of the Lessor's possession. If a dispute arises as to the amount of rent due under this clause, Lessee agrees to pay the full amount claimed by Lessor. Lessee shall, however, have the right to proceed by law to recover the excess payment, if any. 7 c. Lessor shall mllke such election to repair the premises or terminate this lease by giving notice thereof to Lessee at the leased premises within thirty (30) days from the day Lessor received notice that the demised premises had been destroyed or damaged by fire or other casualty. d. Lessor shall not be liable for any damage, compensation or claim by reason of inconvenience or annoyance arising from the necessity of repairing any portion of the building, the interruption in the use of the premises, or the termination of this lease by rellson of destruction of the premiseo. e. The Lessor has let the demised premises in its Pl'esent condition and without any representations on the part of the Lessor. It is understood and agreed that Lessor is under no duty to make repairs or alterations lit the time of letting or at any time thereafter, except as ,)therwise provided for in this agreement. 15. DEPAULT. if the Lesseel A. Does not pay in full within ten (10) days from the date it is due any and all installments of rent, and/or does not pay in full when due other charges or payments herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein Agreed to be paid by the Lessee, or b. Vacates the demised premises, or removes or attempts to remove, or manifests as intention to remove any goods or property therefrom otherwise than in the ordinary and usual course of business, without having first paid and satisfied the Lessor in full for all rent and other charges then due or that may thereafter become due until the expiration of the term above mentioned, or c. Fails to observe or perform any of the other terms, covenants or conditions of this lease on the part of Lessee to be observed and performed, which failure persists after the expiration of twenty (20) days from the date Lessor gives notice to Lessee calling attention to the existence of such failure, provided however that if the matter which is the subject of the notice is of such a nature that the same cannot reasonably be corrected within twenty (20) days, then no default shall be deemed to have occurred if Lessee, before the expiration of the twenty-day period from the date of giving of the aforesaid notice by Lessor, commences the curing of the default and diligently prosecutes the same to completion, or B d. Becomes insolvent or makes an assignment for the benefit of creditors, or if a petition in bankruptcy is filed by or against the I.essee, or a bill in equity or other proceeding for the appointmont of a receiver for the Lessee is filed, or if proceedings for reorganization or for composition with creditors under any state or federal law be instituted by o~ against Lessee, or if the real or personal property of the Lessee shall be sold or levied upon by any Sheriff, Then and in any or either of said events, there shall be deemed to be a breach of this lease, and thereupon and without entry or other action by Lessor: 1. The rent for the entire unexpired balance of the term of this lease, as well as all other charges, payments, costs and expenses herein agreed to be paid by the Lessee, including but not limited to legal expenses and attorney's fees, including those i.ncident to the recovery of possession, brokerage and/or putting the demised premises in good order or for preparing the same for re-rental, or at the opt ion of Lessor any part thereof, and all costs, shall, in addition to any and all installments of rent already due and payable and in arrears, and/or any other charge or payment herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein agreed to be paid by the Lessee which may be due and payable and in arrears, be taken to be due and payable and in arrears as if by the terms and provisions of this lease, the whole unpaid balance of unpaid rent and other charges, payments, taxes, costs and expenses were on that date payable in advance; and if the lease or any part thereof is assigned, or if the premises or any part thereof is sublet, Lessee hereby irrevocably constitutes and appoints Lessor as Lessee's agent to collect the rents due by such assignee or sublessee, and apply the same to the rent due hereunder, without in any way affecting Lessee's obligation to pay any unpaid balance of rent due hereunder, or in the event of any of the foregoing at any time at tho option of Lessor; 2. This lease and the terms hereby created shall determine and become absolutely void without any right on the part of the Lessee to save the forfeiture by payment of any sum due or by other performance of any conditioll, term or covenant broken; whereupon Lessor shall be entitled to recover damages for such breach in an amount equal to the amount of rent reserved for the balance of the term of this lease and other charges, payments, costs and expenses referred to in subparagraph 1 hereof. 9 16. REMEDIES: forth in paragraph behalf, at Lessor's In 15, the option I the event of any default as above set Lessor, or anyone acting on Lessor / s a. May without notice or demand enter the demised premises for the purpose of distraining or levying on any goods or chattels therein. b. May lease said premises or any part or parts thereof to such person or persons as may, in Lessor's discretion, seem best, and the Lessee shall be liable for any loss of rent for the balance of the then current term. c. If relit and/or any charges hereby reserved as rent shall remain unpaid on any day when the same ought to be paid, Lessee hereby empowers any Prothonotary or attorney of any court of record to appear for Lessee in any and all actions which may be brought for rent and/or the charges, payments, costs and expenses reserved as rent, or agreed to be paid by the Lessee, and/or to sign for Lessee an agreement for entering in any competent court an amicable action or actions for the recovery of rent or other charges or expense, and in said suit or in said amicable action or actions, to confess judgment against Lessee for all or any part of the rent specified in this lease and thon unpaid, including, at Lessor's option, the rent for the entire unexpired balance of the term of thi'l lease, and/or other charges, payments, costs and expenses reserved as rent or agreed to be paid by the Lessee, and for interest and costs together with attorney's commission of ten percent (10%). Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of said rent and/or other charges reserved as rent shall fall due or be in arrears, and such powers may be exercised as well after the expirat.ion of the original term and/or during any extension or renewal of this lease. d. When this lease shall be determined by a condition broken, either during the original term of this lease or any renewal or extension thereof, and also when and as soon as the term hereby created or any extension thereof shall have explred, it shall be lawful for any attorney, as attorney for Lessee, to file an agreement for entering in any competent court an amicable action in judgment and ejectment against Lessee, and all persons claimlng under Lessee for the recovery by Lessor of possession of the herein demised premises, for which this lease shall be his suff icient warrant, whereupon, if Lessor so desires, a Writ of Possession may issue forthwith, without any prior proceedings whatsoever, and provided that if, for any reason, after sllch action shall have been commenced, the same shall be determined and the possession of the premises hereby demised remain in or be restored to Lessee, Lessor 10 shall have the right upon any subsequent default or defaults, or upon the termination of this lease as hereinbefore set forth, to bring one or more amicable action or actions, as hereinbefore set forth, to recover possession of the said premises. 17. CUMULA'rIVE EFFECT: All the remedies hereinbefore given to Lessor and all rights and remedies given to him by law and equity shall be cumulative and concurrent. No dete:rmination of this lease or the taking or recovery of the premises shall deprive Lessor of any of his remedies or actions against the Lessee for rent due at the time, or which, under the terms hereof, would in the future become due, as if there has been no determination, or for sums due at the time of which, under the terms hereof, would in the future become due as if there has been no determination, nor shall the bringing of any action for rent or breach of covenants, or the resort to any other remedy herein provided for the recovery of rent, be construed as a waiver of the right to obtain possession of the premises. Similarly, no exercise of any of Lessor's right given to him by law and equity, or exercisable in accordance with the terms and provisions of this lease agreement, shall deprive Lessor of any of his remedies or actions against the Lessee under the terms of the Agreement of Sale referred to hereinabove. 18. SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Lessor' 8 property, to extensions or renewals thereof, and to all advances now or hereafter made on the security thereof. Lessee agrees, on request, to execute such further instruments evidencing such subordination as Lessor may request, and if Lessee fails to do so, Lossor is empowered to do so in the name of Lessee. 19. MECHANICS' LIENS: The Lessee shall have no right to encumber or subject the interest of the Lessor in the demised premises to any mechanics, materialmens or other lienEl of any nature whatsoever, and upon the filing of any such lien, the failure of the Lessee to have the same removed from record promptly shall constitute a violation of this agreement and entitle Lessor at this option to taken any legal action elsewhere in this agreement reserved to said Lessor. 20. FIRE EXTINGUISHERS: Lessee agrees to supply and maintain at his own expense any fire extinguishers or other fire prevention equipment required by law, rules, orders, ordinances and regulations of any city, county or state in which the demised premises are located, and/or required by any underwriters association, bureau or any other similar body having jurisdiction involving said premises. 11 21. SIGNS! Lessee will place no signs, awnings or curtains on any part of the exterior of said premises or on any show window, nor paint any brick or stone work, cornice work, mill work or iron work on the front of said premises without the written consent of Lessor or its agent first had and obtained. Such consent shall not be unreasonably withheld. 22. QUIET POSSESSION: It is further understood and agreed, that subject to the terms of this lease, Lessee, paying the rent hereby reserved, and performing and observing the several covenants hereof, may peacefully hold and enjoy the said premises throughout the duration of this lease w~thout any interruptions by the Lessor., his heirs or assigns or any person lawfully claiming through him. 23. LESSOR NOT A PARTNER: It is expressly understood that the Lessor shall not be construed or held to be a partner or associate of the Lessee in the conduct of his business; it being expressly understood that the relationship between the parties hereto is and shall remain at all times that of Lessor and Lessee. 24. APPLICATION OF PAYMENTS RECEIVED FROM LESSEE: I.es60r shall have the right to apply any payments made by Lessee to the satisfaction of any debt or obligation of Lessee to Lessor according to Lessor's sole discretion and regardless of the instructions of Lessee as to the application of any such sum, whether such instructions be endorsed upon Lessee's check or otherwise, unless otherwise agreed upon by both parties in writing. The acceptance by Lessor of a check or checks drawn by others than Lessee shall in no wise affect Lessee's liability hereunder nor shall it be deemed an approval of any assignment of this lease by Lessee. 25. HOLDOVER: Should Lessee continue in possession after the end of the term herein without renewal as provided for in Paragraph 3 hereof, but with the permission of Lessor, it is agreed that the tenancy thus created can be terminated by either party giving to the other party not less than thirty (30) days' written notice to expire on the day of the month from which the tenancy commenced to run. In so continuing, r.essee agrees to pay the monthly rental provided for herein and to keep and fulfill all other covenants, conditions and agreements. 12 26. LESSOR'S BNTRY AT BND or r.RUiBI If during the last month of the term of this lease or any renewal or extension of the said term Lessee shall have removed all or substantially all of the Lessee's property from the premises, Lessor may, prior to the expiration or ternlination of the term of the lease without releasing Lessee from any obligations to repair or restore the demised premises or to pay the rent in full, and without any elimination or abatement thereof, immediately enter upon and alter renovate dnd redecorate the premises. ~7. NOTICEr All notices which are required or are permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or sent by United States certified mail, prepaid: (a) If to Lessor, addressed tal Robert C. Fitting, Jr. 4530 Coventry Road Harrisburg, PA 17109 (b) If to Lessee, addressed to: Rodney Lee Failor R.D. * 5 Carlisle, PA 17013 Such addresses may be changed at any time and from time to time by like written notice given by either party to the other. 28. OTHER PROVISIONS: The paragraph titles appeoaring in this lease are for purposes of each reference and shall not be considered a part of this lease or in any way to modify, amend, or affect the provisions thereof. 29. BINDING EPFECTr All rights and liabilities herein given to or imposed upon the respective parties hereto shall extend to and bind the several and respective heirs, executors, administrators, successors and assigns of said parties. No rights, however, shall inure to the benefit of any assignee of Lessee unless the assignment of such assignee has been approved by Lessor in writing as aforesaid. ",' 13 I I ,I' F ii" , " Ii I" i!1 I " , " 'I I I " TO.,."....."..,....'......"..~.','...'..,..,....".,"'I'".....,.,'"....,...... YOU AlII Hl/lDV NOTlflll) TO NAIl TO THIl IN. CLOIlIlD WITHIN 'IWIlNTY (Ill) ilAVIl Of =" CIl IIIIlIlOI' OR DIlI'AAT JUI)llIMIHI WoV. ~VOU, ' ' ~:.td T., IOu., A"O/lNa" AT LAW . ,,'I.\XIU.,. .TRallT. alJlTII - HAllAII.VAlI. 'aNN.Y~\lANIA t7lql' 1717) ....Hllt wi DO ....., c.Rm iW\T THI, WITHIN 18 A ~ NIO Cl)l\lWCT 00f't Of THI CJMIIW. f1LID If TIll AOT1ON: ' , ';.t',~"I',II>.....'..I.......~...."..........................."....,.......,.......... ATTOI\HIY .., 1V....................................,...""....."............."'"i"......... , ATTORNI'I .. . . :...X,!: ~.~~-:<:._-.,.. F~::':"':"'-:;;"''' G~'~ v AGRBBMBNT OF COMMERCIAL LEASH THIS AGREEMENT, made this ~ '7 day of :J;"t!!- , 1997, by and between ROBBRT C. FITTING, JR., of 4530 Coventry Road, Harrisburg, Dauphin County, Pennsylvania 17109, hereinafter called Lessor, ,(er and Ii r .JY ;>>Ylt." ST. ~r.lh/,,~"'; RODNBY I.EE FAILOR, of R.D. >> 5. C;ulillle, Cumberland County, Pennsylvania ~791J, hereinafter called Lessee. /,)()(. ,- PREMISES and USE: WITNESSETH: That Lessor, in consideration of the rents hereinafter covenanted to be paid by the Lessee, and in consideration of the covenants hereinafter stipulated to be performed by the Lessee and in consideration of the mutual covenants and agreements hereinafter mentioned, does hereby demise, let and lease unto the Lessee, for the purpose of operating an auto repair facility on Mill Street in Mt. Holly Springs, Pennsylvania, described as follows: BEGINNING at a point in the center line of the public road leading from Boiling Springs to Mount Holly Springs (Route No. 21009) at line of land of Robert C. Fitting and Sidney Roth; thence by said centerline, North 70 degrees 45 minutes East, 366.64 feet, more or less, to the line of land now or formerly of A.S. Otto; thence by the same, South 17 degrees 45 minutes West, 198 feet, more or less, to the westerly right-of-way of the Gettysburg and Harrisburg Railway Company; thence along said right-of-way line, South 26 degrees 30 minutes West 520 feet, more or less, to the line of land of Fitting and Roth aforesaid; thence by the latter land, North 03 degrees 59 minutes East 533.16 feet, more or less, to the place of BEGINNING. THE ABOVE described tract of land has thereon erected a two- story frame dwelling house and a three-bay garage building and a shed, and other improvements, all of which are known and numbered 228 Mill Street, Mt. Holly Springs, Pennsylvania 17065. 1. TERM: Said premises are leased for a term of three (3) years beginning the firRt day of April 1997, and ending the thirtieth day of April 2000, upon the covenants and conditions hereinafter set forth. 2. RENT! The Lessee shall pay to the Lessor as rent for the leased premises during the term of t~~ the total sum of Thirty-Seven Thousand Eight Hundred ($ 3~,.00.~O) Dollars, payment in monthly installments of onS!usand Dollars ($~OOO~Qn) for the first year; One Thousand llars ($ 1,0110. OQj "tor the second year; and One Thousand d Dollars ($ 1,<fIto.OO) for the third year; with the first payment due on April 1, 1997, and each successive payment due and payable the first day of each calendar month during the term of this lease. 3. LATE AND SERVICE CHARGESI A late charge of ten percent (10%) of the amount of rent due for the monthly rental period shall be assessed for any payment not made within ten (10) days after the date it is due and a service charge of Twenty-Five Dollars ($ 25.00) will automatically be made for each instance in which a check is returned unpaid by the Lessee's bank for any reason whatsoever. If Lessee pays by personal check and more than one check is returned for insufficient funds or for any other reason, Lessor has the right to demand cash, a certified check, cashier's check or money order in payment of full future rents. 4. SECURITY DEPOSIT I Lessee has this date deposited with I.essor the additional sum of Two Thousand Dollars ($ 2,000.00) receipt of which is hereby acknowledged by Lessor as security for the full and faithful performance by Lessee of the aforementioned terms, conditions and covenants of this lease on Lessee's part to be performed and kept and for the cost of, inter alia, any trash removal, house cleaning and repair or correction of damage in excess of normal wear and tear. This security deposit or any balance thereof shall be returned without interest after the Lessee has vacated and left the premises in an acceptable condition and surrendered all keys and if the Lessee shall have made all payments due hereunder and performed all such covenants and agreements contained herein. If Lessor determines that any loss, damage or injury chargeable to the Lessee hereunder exceeds the security deposit, the Lessor, at his option, may retain the said sum as liquidated damages or may apply the sum against actual loss, damage or injury and the balance thereof will be the responsibility of Lessee. It is further understood and agreed that the said security deposit is not to be considered aa the last payment under this Lease, but that should the Lessee be in default in the payment of any rent herein reserved or any portion thereof, Lessor may at Lessor's option appropriate and apply any portion of the security deposit as may be necessary to the payment of the overdue rent or other sums expressly constituting rent hereunder. 2 5. ACCBPTANCE and DBLIVERY: Lessee acknowledges that he hall examined the leased premises and his acceptance of this agreement is conclusive evidence that said premises are in good and satisfactory order and repair unless otherwise specified herein; and the Lessee agrees that no representations as to the condition of the premises have been made and that no agreement has been made to redecorate, repair or improve the premises unless hereinafter set forth specifically in writing. The Lessor will deliver the leased premises and all common areas in a clean, safe and sanitary condition, free of rodents and vermin and in complete compliance with all applicable laws. 6. SPECIAL PROVISIONS: conducted on the premises except of an auto repair facility. No salvage operations are to be those incidental to the operation 7. LESSEE'S DUTIES: will, without demand: a. RENT: Pay the rent and all other charges herein reserved as rent, on the days ar.d times that the same are made payable, without fail, and if Lessor shall at any time or times accept said rent or rent charges, or other required payments, after the same shall become due and payable, such acceptance shall not excuse delay ~pon subsequent occasions, or constitute or be construed as a waiver of any of Lessor's rights, including Lessor's right of distraint and other process. Lessee covenants and agrees that he b. ~~D ORDER and REPAIR: Keep the demised premises in good repair during the term of this lease, reasonable wear and tear and damage by accidental fire or other casualty not occurring through negligence of Lessee or those employed by or acting for Lessee alone excepted. The Lessee agrees to surrender the demised premises in the same condition in which he has herein agreed to keep tho same during continuance of this lease. c. SIDEWALKS and TRASH: Keep the demised premises, including the sidewalk in a clean and orderly condition at all times. In addition, Lessee shall be responsible for garbage or trash removal, and for removal of snow and ice in accordance with Borough and/or other applicable ordinances. d. UTILITIES: Pay the following utilities as the same become due and payable: The Lessee is responsible for the payment of all utilities on the premises, including but not limited to electric, oil and water and sewer. 3 e. GOOD ORDER and REPAIRI Lessee further agrees that Lessee is responsible for all repairs of any type whatsoever to the property, including mechanical malfunctions, changes or any other condition which is of major consequence, and Lessor is relieved from any obligation to perform any repairs on said property whatsoever. f. ORDINANCES and REGULATIONS: Comply with any requirements of any of the constituted public authorities, and with the te~~IS of any statute of the Commonwealth of pennsylvania or the federal government or local ordinance or regulation appllcable to Lessee or the use of the demised premises and save Lessor harmless from penalties, fines, costs or damages resulting from failure to do so. Lessee shall be responsible for obtaining from the proper municipal, county, state and other authorities such permits as may be required for the operation and maintenance of an auto repair and r.estoration facility, including all costs associated therewith, including any zoning variances required. Lessee agrees to correct any and all deficiencies found as a result of any inspections performed by any of the consti tuted public authorities aforesaid and agrees to pay the costs thereof. g. TAXES: Pay any and all taxes due as a result of the operation of said business. Lessee promptly will pay all local property taxes upon presentation of said tax bill and will provide proof of such payment to Lessor without demand. h. CONDUCT OF BUSINESS: That it will not carry on any unlawful or immoral business in or about the demised premises, and will not carryon any business which will endanger the buildings from fire or cause a forfeiture of any fire insurance that the Lessor has o~ hereafter may have on the buildings. i. INSURANCE: Carry public liability insurance and fire, extended coverage, vandalism and malicious mischief coverage on the demised premises, for the mutual benefit of Lessor and Lessee, such insurance to afford protection to the limit of $ 300,000 in respect to the injury or death of a single person, and $ 500,000 in respect to anyone accident, and to the limit of $ 20,000 in respect to property damage. Lessee covenants and agrees to pay the premium charged for such insurance coverage, and Lessee shall furnish certificates of such insurance policy or policies upon each purchase of such insurance, stating therein the number of each policy, the name of the insurer, the amount of insurance under each such policy, and the date of expiration of each such policy, and shall from time to time, whenever required, satisfy Lessor that such policy or policies is or are in full force and effect. Such insurance shall be procured from a reasonable insurance company or companies, reasonably satisfactory to Lessor, and authorized to do business in the Commonwealth of Pennsylvania. 4 In case Lessee shall at any time fail, neglect or refuse to obtain the insurance required by this insurance paragraph, and to keep the same in force as provided therein, the Lessor may, at his option, procure or renew such insurance, but such election by the Lessor shall be at Lessee's expense and chargeable to the Lessee as additional rent. j. PLATB roT.ASS INSURANCB: Carry in a standard company full coverage insurance on all plate glass in said premises and cause same to be replaced if chipped, cracked or broken, said insurance policy or certificate from Lessee's insurance company to be deposited with Lessor and any such policy to provide that it shall not be cancelled for any reason unless and until Lessor shall be given fifteen (15) days' not.ice in writing by the insurance company. 8. CONSENT: Lessee covenants and agrees that he will do none of the following things without the consent, in writing, of Lessor first had and obtainedl a. AFFECT LESSOR'S INSURANCE: Do or suffer to be done any act, matter or thing objectionable to the fire insurance companies, whereby the fire insurance or any other insurance now in force or hereafter to be placed on the demi3ed premises, or any part thereof, or on the buildings of which the demised premises may be a part, shall become void or suspended, or whereby the same shall be rated as a more hazardous risk than as at the date of the execution of this lease, or employ any person or persons objectionable to the fire insurance companies, or carry or have any explosive matter of any kind in and about the demised premises, and should any act or neglect of the Lessee or the nature of Lessee's business cause an increase or increases in fire insurance premiums upon the demised premises and/or the buildings of which the demised premises are a part due to an increase in the rate of fire insurance in excess of the rate on the demised premises at the time of the making of this lease, Lessee agrees to pay to Lessor as additional rent said increase or increases. b. ASSIGNMENT: Except as otherwise specifically set forth herein, assign this lease nor sublet the premises or any part of the premises covered by this Lease without the prior written consent of Lessor. c. RENOVATIONS: Make any renovations or structural changes, additions or improvements to the leased premises without having first obtained Lessor's written consent, which consent shall not be unreasonably withheld. Such changes, additions or improvements shall be made at I.essee's expense, and shall become property of the Lessor upon termination of this lease. 5 9. INSPECTION I Lessee covenants and agrees that Lessor shall have the right at all reasonable times by himself or his duly authorized agents to go upon and inspect the demised premises and every part thereof. This provision shall authorize the Lessor to post a "For Rent" sign and to show said premises at reasonable hours to prospective tenants during the last ninety (90) days of the term herein. This provision shall also authorize the Lessor to post a for sale sign at any time during the term of this lease or any renewal thereof and to show said premises at reasonable hours to prospective purchasers. 10. PERSONAL PROPERTY: Lessor shall not be responsible for damage from any cause to personal property of Lessee in the leased premises, and Lessee shall be required to carry his own insurance on such personal property. 11. INDEMNIFICATION: Lessee will indemn.ify the Lessor from all claims, demands and damages for injuries to person or property arising from or in any manner connected with the occupancy or use of the leased premises by Lessee, and from any and all other claims, demands, liens, damages, fines or penalties of whatever name, nature or kind, in any way or manner chargeable to or payable for, or in respect to the use, occupancy or ownership of the leased premises, or from any act or omission of the Lessee, his servants, agents, representatives, tenants, guests, invitees, licensees, customers, or any other person, firm or corporation in or about or adjacent to the leased premises, except insofar as the negligence of the Lessor is the proximate cause of such claims, demands, liens, damages, fines or penalties. Lessee will pay all costs, expenses and attorney's fees incurred by or imposed on the Lessor in prosecution or defense of any suit, action or proceeding predicated upon an alleged breach of any undertaking by the Lessee under the terms of this Lease, or for or which the Lessee has covenanted to indemnify the Lessor under the terms of this Lease, or would be bound by law to indemnify the Lessor. Lessee shall bear, pay and discharge, when and as the same become due and payable, all judgments and lawful claims for damages or otherwise against Lessor or his property arising from injury or damage to the person or property of Lessee, or of any clerk, agent, employee, servant, invitee, customer, licensee or visitor upon the demised premises, or the sidewalks on or adjacent to said property, including injury and damage caused by the operation of Lessee's business or by fixtures, machinery, apparatus or appliances in or upon the demised premises; and will assume the burden and expense of this lease, and will protect, .indemnify and save harmless Lessor, his agents, servants, employees, and the public at large, by reason of or on account of the use or misuse of the premises hereby leased, or any sidewalk on or adjacent to the said premises or any part thereof. 6 12. ADDITIONAL RBNT' In the event of the failure of Lessee to promptly perform any of the covenants and conditions of this Lease, Lessor may go upon the demised premises and perform such covenants, the costs thereof, at the sole option of Lessor, to be charged to Lessee as additional and delinquent rent. 13. LBSSOR'S OBLIGATIONS, he willi Lessor covenants and agrees that a. notification Lessee. REAL BSTATB TAXES, Provide to Lessee any of real estate tax due on the property for payment by b. INSURANCE, At his own cost and expense, carry fire and extended coverage insurance on the leased premises. All proceeds from insurance for damage or destruction done to the building will be paid to Lessor, and Lessee will have no claim for said proceeds. Lessor is not required, however, to carry or maintain insurance on any of the personal property of Lessee, his successors or assigns. 14. premises thenl FIRE' In the event of the destruction of the demised by fire, water damage, governmental action or acts of God, a. In the event that the demised premises are totally destroyed or so damaged by fire or other casualty not occurring through fault or negligence of the Lessee or those employed by or acting for him, that the same cannot be repaired or restored within a reasonable time, this lease shall absolutely cease and determine, and the rent shall abate for the balance of the term. b. If the damage caused as above be only partial and such that the premises can be restored to the then condition within a reasonable time, the Lessor may, at his option, restore the same with reasonable promptness, reserving the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to enter upon the demised premises for that purpose. The Lessor also reserves the right to entez upon the demised premiees whenever necessary to repair damage caused by fire or other casualty to the buildings of which the demised premises are a part, even though the e(fect of such entry be to render the demised premisee or a part thereof untenantable. In either event, the rent shall be apportioned and suspended during the time the Lessor is in possession, taking into account the proportion of the demised premises rendered untenantable and the duration of the Lessor's possession. If a dispute arises as to the amount of rent due under this clause, Lessee agrees to pay the full amount claimed by Lessor. Lessee shall, however, have the right to proceed by law to recover the excess payment, if any. 7 c. Lessor shall make such election to repair the premises or terminate this lease by giving notice thereof to Lessee at the leased premises within thirty (30) days from the day Leasor received notice that the demised premises had been destroyed or damaged by fire or other casualty. d. Lessor shall not be liable for any damage, compensation or claim by reason of inconvenience or annoyance arising from the necessity of repairing any portion of the building, the interruption in the use of the premises, or the termination of this lease by reason of destruction of the premises. e. The Lessor has let the demised premises in its present condition and without any representations on the part of the Lessor. It is understood and agreed that Lessor is under no duty to make repairs or alterations at the time of letting or at any time thereafter, except as otherwise provided for in this agreement. 15. DEFAUJ,T: If the Lessee: a. Does not pay in full within ten (10) days from the date it is due any and all installments of rent, and/or does not pay in full when due other charges or payments herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein agreed to be paid by the Lessee, or b. Vacates the demised premises, or removes or attempts to remove, or manifests as intention to remove any goods or property therefrom otherwise than in the ordinary and usual course of business, without having first paid and satisfied the Lessor in full for all rent and other charges then due or that may thereafter become due until the expiration of the term above mentioned, or c. Fails to observe or perform any of the other terms, covenants or conditions of this lease on the part of Lessee to be observed and performed, which failure persists after the expiration of twenty (20) days from the date Lessor gives notice to Lessee calling attention to the existence of such failure, provided however that if the matter which is the subject of the notice is of such a nature that the same cannot reasonably be corrected within twenty (20) days, then no default shall be deemed to have occurred if Lessee, before the expiration of the twenty-day period from the date of giving of the aforesaid notice by Lessor, commences the curing of the default and diligently prosecutes the same to completion, or 8 d. Becomes insolvent or makes an assignment for the benefit of creditors, or if a petition in bankruptcy is filed by or against the Lessee, or a bill in equity or other proceeding for the appointment of a receiver for the Lessee iR filed, or if proceedings for reorganization or for composition with creditors under any state or federal law be instituted by or against Lessee, or if the real or personal property of the Lessee shall be sold or levied upon by any Sheriff, Then and in any or either of said events, there shall be deemed to be a breach of this lease, and thereupon and without entry or other action by Lessor: 1. The rent for the entire unexpired balance of the term of this lease, dS well as all other charges, payments, costs and expenses herein agreed to be paid by the Lessee, including but not limited to legal expenses and attorney's fees, including those incident to the recovery of possession, brokerage and/or putting the demised premises in good order or for preparing the same for re-rental, or at the option of Lessor any part thereof, and all costs. shall, in addition to any and all installments of rent already due and payable and in arrears, and/or any ot.her charge or payment herein reserved, included or agreed to be treated or collected as rent, and/or any other charge, expense or cost herein agreed to be paid by the Lessee which may be due and paYClble and in arrears, be taken to be due and payable and in arrears as if by the terms and provisions of this lease, the whole unpaid balance of unpaid rent and other charges, payments, taxes, costs and expenses were on that date payable in advance; and if the lease or any part thereof is assigned, or if the premises or any part thereof is sublet, Lessee hereby irrevocably constitutes and appoints Lessor as Lessee's agent to collect the rents due by such assignee or sublessee, and apply the same to the rent due hereunder, without in any way affecting Lessee's obligation to pay any unpaid balance of rent due hereunder, or in the event of any of the foregoing at any time at the option of Lessor; 2. This lease and the terms hereby created shall determine and become absolutely void without any right on the part of the Lessee to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken; whereupon Lessor shall be entitled to recover damages for such breach in an amount equal to the amount of rent reserved for the balance of the term of this lease and other charges, payments, costs and expenses referred to in subparagraph 1 hereof. 9 16. REMEDIES I forth in paragraph behalf, at Lessor's In 15, the option I the event of any default as above set Lessor, or anyone acting on Lessor's a. May without notice or demand enter the demised premises for the purpose of distraining or levying on any goods or chattels therein. b. May lease said premises or any part or parts thereof to such person or persons as may, in Lessor's discretion, seem best, and the Lessee shall be liable for any loss of rent for the balance of the then current term. c. If rent and/or any charges hereby reserved as rent shall remain unpaid on any day when the same ought to be paid, Lessee hereby empowers any Prothonotary or attorney of any court of record to appear for Lessee in any and all actions which may be brought for rent and/or the charges, payments, costs and expenses reserved as rent, or agreed to be paid by the Lessee, and/or to sign for Lessee an agreement for entering in any competent court an amicable action or actions for the recovery of rent or other charges or expense, and in said suit or in said amicable action or actions, to confess judgment against Lessee for all or any part of the rent specified in this lease and then unpaid, including, at Lessor's option, the rent for the entire unexpired balance of the term of this lease, and/or other charges, payments, costs and expenses reserved as rent or agreed to be paid by the Lessee, and for interest and costs together with attorney's commission of ten percent (10%). Such authority shall not be exhausted by one exercise thereof, but judgment may be confessed as aforesaid from time to time as often as any of said rent and/or other char.ges reserved as rent shall fall due ~r be in arrears, and such powers may be exercised as well after the expiration of the original term and/or during any extension or renewal of this lease. d. When this lease shall be detprmined by a condition broken, either during the original term of this lease or any renewal or extension thereof, and also when and as soon as the term hereby created or any ext.ension thereof shall have expired, it shall be lawful for any attorney, as attorney for Lessee, to file an agreement for entering in any competent court an amicable action in judgment and ejectment against Lessee, and all persons claiming under Lessee for the recovery by Lessor of possession of the herein demised premises, for which this lease shall be his sufficient warrant, whereupon, if Lessor so desires, a Writ of Possession may issue forthwith, without any prior proceedings whatsoever, and provided that if, for any reason, after such action shall have been commenced, the same shall be determined and the possession of the premises hereby demised remain in or be restored to Lessee, Lessor 10 shall have the right upon any subsequent default or defaults, or upon the termination of this lease as hereinbefore set forth, to bring one or more amicable action or actions, as hereinbefore set forth, to recover possession of the said premises. 17. CUMULATIVE EFFECT: All the remedies hereinbefore given to Lessor and all rights and remedies given to him by law and equity shall be cumulative and concurrent. No determination of this lease or the taking or recovery of the premises shall deprive Lessor of any of his remedies or actions against the Lessee for rent due at the time, or which, under the terms hereof, would in the future become due, as if there has been no determination, or for sums due at the time of which, under the terms hereof, would in the future become due as if there has been no determination, nor shall the bringing of any action for rent or breach of covenants, or the resort to any other remedy herein provided for the recovery of rent, be construed as a waiver of the right to obtain possession of the premises. Similarly, no oxercise of any of Lessor's right given to him by law and equity, or exercisable in accordance with the terms and provis.ions of this lease agreement, shall deprive Lessor of any of his remedies or actions against the Lessee under the terms of the Agreement of Sale referred to hereinabove. 18. SUBORDINATION: This lease is subject and subordinate to the lien of all mortgages now or at any time hereinafter placed upon any part of Lessor's property, to extensions or r.enewals thereof, and to all advances now or hereafter made on the security thereof. Lessee agrees, on request, to execute such further instruments evidencing such subordination as Lessor may request, and if Lessee fails to do so, Lessor is empower.ed to do so in the name of Lessee. 19. MECHANICS' LIENS: The Lessee shall have no right to encumber or subject the interest of the Lessor in the demised premises to any mechanics, materialmens or other liens of any nature whatsoever, and upon the filing of any such lien, the failure of the Lessee to have the same removed from record promptly shall constitute a violation of this agreement and entitle Lessor at this option to taken any legal action elsewhere in this agreement reserved to said Lessor. 20. FIRE EXTINGUISHERS: Lessee agrees to supply and maintain at his own expense any fire extinguishers or other fire prevention equipment required by law, rules, orders, ordinances and regulations of any city, county or state in which the demised premises are located, and/or required by any underwriters association, bureau or any other similar body having jurisdiction involving said premises. 11 21. SIGNS. Lessee will place no signs, awningll or curtainll on any part of the exterior of Ilaid premisell or on any show window, nor paint any brick or Iltono work, cornice work, mill work or iron work on the front of said premilles without the written consent of Lessor or its agent first had and obtained. Such consent shall not be unreasonably withheld. 22. QUIET POSSESSION I It is further understood and agreed, that subject to the terms of this lease, Lessee, paying tho rent hereby reserved, and performing and observing the several covenantll hereof, may peacefully hold and enjoy the Ilaid premises throughout the duration of this lease without any interruptions by the Lessor, his heirs or assigns or any person lawfully claiming through him. 23. LESSOR NOT A PARTNER: It is expressly underatood that the Lessor shall not be construed or held to be a partner or associate of the Lessee in the conduct of his business; it being expressly understood that the relationship between the parties hereto is and shall remain at all times that of Lessor and Lessee. 24. /oPPLICATION OF PAYMENTS RECEIVED FRQM LESSEE: Lessor shall have the ri.ght to apply any payments made by Lessee to the satis faction of any debt or obligation of Lessee to Lessor according to Lessor's sole discretion and regardless of the instructions of Lessee as to the application of any such sum, whether such instructions be endorsed upon Lessee's check or otherwi.se, unleos otherwise agreed upon by both parties in writing. The acceptance by Lessor of a check or checks drawn by others than Lessee shall in no wise af fect Lessee's 1 iabil i ty hereunder nor shall it be deemed an approval of any assignment of this lease by Lessee. 25. HOLDOVER: Should Lessee continue in possession after the end of the term herein without renewal as provided for in Paragraph 3 hereof, but with the permission of Lessor, it is agreed that the tenancy thus created can be terminated by either party giving to the other party not less than thirty (30) days' written notice to expire on the day of the month from which the tenancy commenced to run. In so continuing, Lessee agrees to pay the monthly rental provided for herein and to keep and fulfill all other covenants, conditions and agreements. 12 26. LBSSOR' S BNTRY AT BND or LEASB! If during the last month of the term of thiB lease or any renewal or extension of the said term Lessee shall have removed all or substantially all of the Leuee's property from the premises, Lessor may, prior to the expiration or termination of the term of the lease without releasing Lessee from any obligations to repair or restore the demised premises or to pay the rent in full, and without any elimination or abatement thereof, immediately enter upon and alter renovate and redecorate the premises. 27. NOTICE! All notices which are required or are permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or sent by United States certified mail, prepaidl (a) If to Lessor, addressed tOI Robert C. Fitting, Jr. 4530 Coventry Road Harrisburg, PA 17109 If to Lessee, addressed tal Rodney Lee Failor R.D. * 5 Carlisle, PA 17013 Such addresses may be changed at any time and from time to time by like written notice given by either party to the other. (b) 28. OTHER PROVISIONS! The paragraph titles appearing in this lease are for purposes of each reference and shall not be considered a part of this lease or in any way to modify, amend, or affect the provisions thereof. 29. BINDING BFFECT! All rights and liabilities herein given to or imposed upon the respective parties hereto shall extend to and bind the several and respective heirs, executors, administrators, successors and assigns of said parties. No rights, however, shall inure to the benefit of any assignee of Lessee unless the assignment of such assignee has been approved by Lessor in writing as aforesaid. 13 I I II I ?i 0\ ~ I ~~ .- 't,\9 & d~ (~ I ~f~ 'h) .~ ~\!. 0- (:);::) n '1 -- I' >:;t 'tfJ tD~l: Cool ()t.;J rEI:' l_~ "lw ~:. . ::'J I.J:~ q .... ~ ~ B ., ,! j!' ,I , , , , ' d " " , .. ,,1 tr: ~:lIf'fl r,", ';I"i' I't..,_ ~ f 0.1 r\tf' , ". ,. 'il{, q '. '"" I' 0.,1/,;, F, " <" ifr!',' " ".',1' , ,I j' 'e? ~' ' ~~, ~-~~ " , , I , , I " 'I' , I I' I I " , ~ "