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HomeMy WebLinkAbout97-04700 1 ~ ~ i ~ " ~ , , " ~. , I "1 " II , , " , 1,/,' ~ " 'I'. d ~ " , 'I " , " \ n -'j , ' , " 'I . I , " " I !I , , '1 :' i" i, I., " " ' . , I , , , , " j, ' I > , , , Ii .. II , I , ' , J . I 'i , I" " i I I , ~ " II " , , , , I, , Ii ~ ~ .. .. BENATEC ASSOCIATES, INC" Petitioner v. r r r r I r r IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. 9'1 - L/-71)O erA $V>o v PA 240 ASSOCIATES, Respondent CIVIL ACTION - EQUITY ORDIIR AND NOW this ~ day ot Auqust, 1997, upon consideration of . Petitioner's Petition for Prellminary Injunction with supportinq Affidavit and Affidavit of Counsel reqardinq attempted notice to Respondent, and it appearinq to the Court that immediate, irreparable harm will be sustained by Petitioner before a hearinq can be held on Petitioner's Petition for Preliminary Injunction, it is hereby ORDERED, that Respondent, PA 240 Associates, its partners, owners, affiliates, principals, aqents, representatives, and assiqns be and are hereby enjoined and prohibited from any action or tailure to act desiqned or likely to result in the disturbance or deprivation of Petitioner's quiet enjoyment and habitation of the premises located at 110 Erford Road, Camp Hill, Pennsylvania; and it is further ORDERED, that, pursuant to Pa. R.C.P. 5 1531(d), a hearinq pertaininq to the continuance of this ~ ~ t- 3 I '191 be he 1 d on ..IAJu-... 6ly I -""'Ir' at 'I: 00 and it is further preliminary injunction will 111'7. in Court Room 'f . , "" ~c ell" 6,t,t.._~ ('....T".."'~, CltlCJ.'J..C Co ft NT"I 1''' 17"7 I BENATEC ASSOCIATES, INC" Petitioner IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO. C(rl_ 4- ?UO I I I I I I : CIVIL ACTION - EQUITY v. PA 240 ASSOCIATES, Respondent PBTITION WOR PRBLIKINARY AND 8PBCIAL INJUHCTION AND NOW comes the Petitioner, Benatec Associates, Inc., by and , through its attorneys, Wix, Wenger & Weidner, and seeks issuance of a Preliminary and Special Injunction pursuant to Pennsylvania Rules of civil Procedure No. 1531, and in support alleges as follows: 1. Petitioner is Benatec Associates, Inc" a corporation providing professional engineering and related services and having offices at 101 Erford Road, camp Hill, Cumberland County, Pennsylvania. 2. Respondent is PA 240 Associates, a partnership having offices at 110 Sunset Avenue, HarriSburg, Dauphin County, Pennsylvania. 3, The subj ect matter of this action is the threatened disruption of Petitioner's occupancy of the premises at 101 Erford Road by Respondent. 4, Petitioner is the lessee of the premises. 5. Respondent is the lessor of the premises by way of assignment of the written lease and informal amendatory transactions, all described below. ,. . 6. Petitioner entered a written lease with the prior owner of the premises, said lease having a stated term of five years beginning April 1, 1992. A copy of' the lease is attached as Exhibit "A". 7. The term of the lease was extended by informal agreement of Petitioner and the original lessor, 8. On or about July 14, 1997, Respondent entered upon a purchase agreement with the original lessor, whereby Respondent acquired title to the premises and received an assignment of the original lessor's interest in Petitioner's lease, 9. At or before the time of settlement, Petitioner stipulated with the original lessor that Petitioner would hold over occupancy of the premises beyond the stated termination date. Petitioner and the original lessor evidenced said stipulation by a writing entitled "Estoppel certificate" dated July 14, 1997. A copy of said Estoppel Certificate is attached hereto as Exhibit ItB". 10. Said Estoppel Certificate was delivered to and accepted by Respondent at or before settlement on its purchase of the premises. 11. Respondent accepted said Estoppel certificate, raised no objection to Petitioner's continued occupancy, and accepted one or more payments from Petitioner. 2 12, Verbally, prior to Auqust 28, 1997, and in writing on that date, Petitioner advised Respondent that Petitioner would vaoate the premises on October 4, 1997. A copy of the writing by which said notice was given is attached hereto as Exhibit "e". 13. On or before August 28, 1997, Petitioner paid to Respond~nt rental payment for the period September 1 through October 4, 1997. The amount of said payment was at the same rate as was previously charged under the lease. 14. Respondent has given no notice to quit, adequate within the provisions of 68 P.S. S 250.501, which provides in relevant part: A landlord desirous of repossessing real property from a tenant may notify, in writing, the tenant to remove from the same at the expiration of the time specified in the notice under the following circumstances, namely." In case of the expiration of a term or of a forfeiture for breach of the conditions of the lease where the lease is for any term of less than one year or for an indeterminate time, the notice shall specify that the tenant shall remove within thirty days from the date of service thereof, and when the lease is for one year or more, then within three months from the date of service thereof, 15. At or about 3:10 p.m, on Thursday, August 28, 1997, Respondent, stating dissatisfaction with the amount of the rental payment made by Petitioner, telephoned Petitioner and stated that on or about September 2, 1997, Respondent would enter the premises, 3 , regardle.s ot Petitioner'. objections, and would remove or render inoperable the premi..'. electrical, heating, and ventilation facilities and take such other measures as may be required to render the premises uninhabitable. 16. Petitioner avers it is in lawtul possession ot the premises and .aid lawtul possession continues through October 4, 1997. 17. Petitioner believes the action threatened by Respondent will occur it Respondent is unrestrained, and that such action will constitute an illegal physical seizure ot the premises and eviction ot Petitioner. 18. Petitioner avers that its physical eviction by Respondent by rendering the premises uninhabitable is inequitable and contrary to law. 19. Physical eviction ot a tenant by a landlord is illegal in Pennsylvania under the provisions of The Landlord and Tenant Act, 68 P.S. 250.501, which provides the exclusive remedies ot the landlord, and the case law interpreting the Act. See Lenair v. CamDbell, 31 D. & C. 3d 237 (1984). 20. Petitioner believes and therefore avers that such physical eviction is imminent and will occur unless this Court enters an Order prohibiting .uch physical eviction. 4 21. Physical eviction as threatened by Respondent will render Petitioner inoapable of conducting it. bu.ine.. during the period September 1 through ootober 4, 1997, and will irreparably impair Petitioner's future business to an undetermined but substantial extent. 22. The relief requested by Petitioner is necessary to prevent immediate and irreparable harm which cannot be compensated , by damages because the complete incapacity to du business, oaused by Petitioner.'s physical eviction from its offices, will destroy its ability to perform its existing business obligations, will impair its ability to obtain future business, and will diminish good will and reputation which are essential elements in the professional engineering services business in which Petitioner is engaged. 23. Greater injury would result by refusing the requested relief than by granting it because rental for the period in question has been fully paid by Petitioner. Respondent has known and has planned for Petitioner's occupancy through October 4, 1997, so that even if Petitioner'S occupancy is ultimately found to have been unlawful, Respondent would have been paid for the use of the premises and will have incurred little or no injury on account of Petitioner's occupancy. Conversely, if the requested ~elief is denied, Petitioner will suffer substantial harm in the form of disruption of its business activity as described above, 5 , 24. The requested reliet wili maintain the relative status ot the partie. until .uch time aa their re.pective leqal riqhta can be adjudicated. conversely, it the requested reliet is denied, physical eviction ot Petitioner will dramatically chanqe the status of the parties and will inflict upon Petitioner substantial injury, which may not be adequately compensable by money damaqes. 25. The activity soug~t here to be restrained is the physical , eviction of a tenant by a lessor without recourse to legal process. Such activity is clearly actionable under Pennsylvania law and will be prevented by the requested relief. 26, Petitioner's right to the requested relief is olear in that Petitioner seeks to restrain physical eviction by a lessor, an activity which is clearly illegal under Pennsylvania law. 27. Petitioner has no adequate remedy at law to redress the impending harm from Respondent's threatened action. 28. Unless the requested relief is granted, Petitioner will suffer immediate, substantial, and irreparable injury as a result of Respondent's threatened physical eviction in that: (a) Petitioner will lose substantial business opportunities and profits on account of the loss of the premises that is its office and base of operations; and (b) Petitioner will lose good will and reputation on account of its inability to conduct its professional service business activity. 6 29. Unless the requested reliet is granted, Petitioner will sutter immediate and irreparable harm before a hearing can be held on this subject matter in that the physical eviction, threatened by Respondent, will occur within a time earlier than a hearing can be held, Moreover, physical eviction is so clearly illegal under Pennsylvania law that it is highly unlikely that Respondent could establish a right to such physical eviction if a hearing were held. 30. Because rent for the period in question is fully paid, and because the relief requested w~uld restrain a clearly illegal act of physical eviction, Petitioner believes a bond is inappropriate in the instant case and, therefore, requests the Court to waive bond or set bond in a nominal amount. 31. Because performance of the threatened action would cause immediate and irreparable ha:t'm to Petitioner, and would occur prior to the time a hearing could be held on this Petition, Petitioner requests this Court to order the requested relief prior to any hearing on this subject matter. 32. Entry of a preliminary injunction to prevent the performance of threaten acts is a proper use of equity powers. See Philadelphia Gas Works Companv v, Philadelphia, 331 Pa. 321 (1938) . WHEREFORE, Petitioner, pursuant to Pa. R.C.P. S 1531(a), requests that a preliminary injunction be granted by this Court restraining Respondent from any action disturbing the habitability of the premises by Petitioner or disturbing Petitioner'S quiet 7 717:763.7397 TOI 717 764 4l9l I F'IClGEI07 ) (,) /.2 S /efl LEASE THIS INDEN'rURE mllde and executed this _ day of , 199~ by and between ERrORD DEVELOPMENT COMPANY, a partnership, with its principlIl office in Ea.t orange, New Jersey, hereinafter c411ed >>LESSOR>>, party ot the r1ret part, AND BENATEC ASSOCIATES, INC" a Pennsylvania corporation having it. principal ottice in Camp Hill, penn.ylvania, hereinafter called >>LESSEE>>, party of the second partl WITNESSETH: The Le..or does hereby lellse unto Lessee all tho.e oertain premises set torth in the description thereof which i. attached hereto and made a part hereof as Exhibit "A", known as 101 Ertord Road, Camp Hill, Cumberland County, Pennsylvania, and the structUrsB erected thereon, together with all easements, rights of way and rights of access appurtenant thereto, Upon the fallowing terms and conditions: 1, TERM OF LEASE. The term of this lease ~hall be for a period nt five (5) years commencing on the l.t day of April, 1992, unless sooner terminated by Lessor pursuant to paragraph 138, 2. RENT. Lessee shall pay rent for said premises lit such place as designated by Le.sor in writing as tollows: The base rent for the term of the lease shall be Five Hundred Ninety-Five Thousand ($595,000.00) dollar., payable as tollows: aeginning with the tir.t day ot the month coincident with the commencement of the term hereof as provided above, Lessee shall pay rent for. the remainlng term of this lease in equlIl conseoutive monthly installments of Ten Thousand Dollar. ($10,000.00), with the first month to be reduced by II five thOUsand ($5,000,00) signing bonus, so that the first month's rent will be five thousand ($5,000.00) dollars, payable on the first day of each month thereafter, the fir.t such payment to be made on the first day of the tirst month of the term as .et forth above, with appropriate adjUstment in the monthly installments in the last month if not a full calendar month, Said base rQnt shall be based on a triple net lease. Under this triple net lease, Lessee shall be responsible tor payment of all expenses including but not limited to real estate taxes, insuranco, utilities, gas, electric, sewerage, telephone, maintenance, snow removal, garbage removal, cleaning, sanit~tlon, assessments, and IIny other expenses in connecti&ft..r~n cne leased premise. with the exception of oapit~l improvements. -1- J. PAYMENT Of TAXES AND ASSESSMENTS, The tessee shall pay all ta~es that may be imposed, assessed or levied upon the leased premi.es or propert.y thRfeon or any part thereot, or upon the earnings at tessee a. the same shall become due and payable, Lepses ghall promptly pay all special a.sessments properly levied against Lhe premises for local governments, provided however that tessee may conduct proc.edings to contest or reduce any tax or other 1.Vy or a.....m.nt against the premises, in the name of Lessor, at the Bole co.t and .xpense at Les.ee. 4. CASUALTV IHSURA1'CE, Lessee shall keep all building. and improvem.nts now or hereatter erected upon the leased premises in.ured for the benefit of the Le..or and any Mortgagee, its eUCCesSOrS and assigns, as their intereets may trom time to time appear, against loss by tire and other ca.ualtie. and hazards u.ually cover.d by extended coverage insurance, in an amount not less than the replacement value ot the leased premises (excluding foundations and other parts' below the surface at the lowest floor), as d.termined, if desired by Lessor, not more than once annually by an appraiser or rating bureau satiSfactory to Lessor. All of such pOlici.s shall have endorsed thereon standard lessor and ~ortgagee clauses in favor of the parties stated above in this paragraph. Al.o, the atoresaid pOlicies shall have attached thereto or the Lessee shall provide Loss of Rental Insurance, insuring the Lessor and any Mortgagee against loss of rental for a period at not less than one year and in an amount equal to the gross aggregate rental receivable during that period by Lessor hereunder, or Business Interruption Insuranc., insuring all fixed charges of Lessee, including the amount necessary to pay rent hereunder, for a period of not less than one year, Such polici.s of insurance shall be delivered to and held by the Lessor and/or any Mortgagee its successors and assigns, The Lessor and/or any Mortgagee shall have the right to settle all claims under such policies and may demand, receive and receipt for all moneys becoming payable thereunder, provided, however, that, with the written approval of any Mortgagee, insurance proceeds payable thereunder in the amount at Twenty-five Thousand Dollars ($25,000,00) or less shall be paid over to Lessor for use in restoration or repairs to said premis.., and provided that any proc.eds of insurance under the Loss of Rental Insurance or Business Interruption Insurance received by the Lessor. or any Mortgagee shall be refunded to Lessee, 60 long as Less.e is not in default hereunder, and Les.or is not in default under any said mortgage. Any sucn proceeds in the amount of Twenty-five Thousand Dollars ($25,000.00) or more shall be paid by the insurer to the Mortgagee and the Lessor as their interests appear, and shall be applied by them toward the alteration, reconstruction, repair or restoration of the damaged portion of the leased premises in accordance with the original plans and specifications. The Lessee shall deliver to te..or and/or any Mortgagee, its successors and assigns, evidence at payment of all premiums due on such J.nsurance, together with certificates of such insurance, and -2- ~.c?0 97 L4:29 F"ROt';8E~I.."lTE( ~ssnl.[I-HES 717. 76J- i'3'Ji' TO: 717 764 4191 PAGF. , 0'3 all such pollcies ahall contain provision tor written notic. to L.ssor and said Mortgagee not leee than ten (10) days in advance of cancellation th.reof, In the event of the failure of Lessee to insure or keep the eam. in.ur.d as aforesaid the Lee.or may do all things ne~essarv to secure or maintain in torc. .uch insurance, and any moneys expended by it for that purpo.. .hall be payable by Lessee to Lessor on demand and may b. r.covered as rent in arr.ars hereunder. In no event shall there by any abate~ent whatsoever in the term ot this lease for r.nt due and payable hereunder by reauon of any interruption or interference with L.....'s us. and occupanoy of the lea..d premises by reauon of any calamity, nor shall any such interruption or intert.rence be deemed a constructive eviction of L.sse. from the d.mis.d pr.mis.s. Anything in this paragraph to the contrary notwithstanding, in the event any casualty occure of .uch magnitude that r..toration or reconstruction would be uneconomic in the opinion of L...or, and it the in8u~.nce proceeds payable ae a. r.sult th.reof are sufficient to repay in full any mort9a98 reterred to above, then L.sse. and Le.sor shall .ach have the right and option to terminate this lease, and the proceeds ot such insurance shall in such event be used to discharge such indebtedness, Upon payment of all such indebt.dn... and such t.rmination hereof, Le~sor shall b. entitled to any excess insuranc. proce.ds. 5. INDEKNIFICATION AND LIABILITY INSURANCE, The Lesse. will .ave harml.ss and indemnify the Lessor trom and against all los., liability or expense that may b. incurred by reason of any and all claims or demands trom any ~erson or p.rson. whatsoever from loss, injury or damage .uffered or alleged to be suffered by reason ot or in connection with the occupancy and use of the said l.ased premises by or under the L....e. its agents or employee. and Lessee shall maintain in torce at all times during the term hereof required Workmen's Compensation Insurance cove rag. in the statutory amounts, and liability insurance in usual form in an amount not less than One Million Dollars ($1,000,000,00) insuring the interest. of Le..or and Lessee, in an insurance comp~ny or companie. satisfactory to Lessor. 6. UTILITIES. The Le...e shall promptly pay all charges tor gas, .lectric, .ewage, garbage removal, snow removal, cleaning, sanitation, water and any other utility or ..rvic. turnished to or consumed by Lessee upon the leased premises Which may become payable during the term of this lease, In the event Lessee shall fail to pay the charges for any of the aforesaid utilities or services or premiums on insurance as they become due, the Lessor shall have the right to pay same and to collect the amount so paid as rent in arrears, 7. equipment on behalf TITLE TO EQUIPMENT, installed or plac.d of Lessee which can Title to any machinery or upon the leased premises by or be removed from the premise. -)- , without causing material damage to the structures shsll r.main the property at the Lessee, including any computer.. Th. Lessee covenants that it will remove the said machinery or .quipment within thirt.y (30) days att.r the end of the term ot the lease and will repair ^t ita own .xpense any damage cau.ed the leased premises or structures erected th.reon in the cours~ of such removal, All machinery or .quipment of any kind that may be on the premi... during the t.rm ot this lea.e shall be so situated at the risk of the L....., and the L..aor ahall not be liable to the Le..ee or any other person for any injury, loa. or damage to any person or property on the premises. 6. ALTERATIONS ANO REPAIRS. The Lessee at it. sol. COQt and expense may make any r.asonabl. alt.ration, addition or change in the buildings or structures on the leased premi..., provided, however, the Less.e shall not make any alteration in the .xt.rnal elevation or architeotural desi9n~ at the buildings or .tructur.. on the pr.mi... or injure or remove any bearing wallar .upport. thereof without the prior written consent of the Lessor, All usual and necessary r.pairs, normal wear and tear excepted, shall be mad. by Les.e.. It the maintenanoe and repair responsibilities are not undertaken on a current basis the Lessor sha],l have the right but not the responsibility of undertaking such r.pairs and maint.nance and or charging Le.... tor the same as additional r.nt her.und~r. It the Lessee breaches its responsibiliti.. h.r.under in addition to all other right.. Lessor shall have the right to apply any deposit or oth.r tunds it holds for Lessee to pay such obligation and shall have the right to ottset any maint.nanc. and repair r.sponsibilities against any funds due, inCluding but not li~ited to. any funds due trom Lessor to Lesse. as compensation for early termination of this lea.e pursuant to Para9raph 138. of this l.ase. 9. ASSIGNMENT AND SUBLETTING. A. The Lessee at any time after the co~m.ncement of the term 18ase may assign this lease and all its rights under this instrument. to any corporation, a..ociation, trust, partnership or individual, provid.d, howev.r, that such corporation, association, trust partn.rship or individual shall be approved in writing by the Le.sor as financially responsible with r..pect to probable ability to meet the rent payments tor the balance of the t.rm, which written approval shall not be unr.asonably withheld. The assignee in such event shall attorn to the Leasor by agreeing in writing with Lessor to pay the rent and carry out and perform all other cov.nants and Obligations ot the Lessee hereunder. Th.nceforth, the assignea shall be substituted for the L..... and shall have all rights, duties and obligations of the Lese.. hereunder, including without limitation, the provisions of this paragraph relative to the right -4- to assign the lease, which riqht may be exercised from time to time by any assiqnee for the time being on the term. her.in provided, For the balance of the term ther.atter reference. in this in.trument to the Lessee ahall be deemed to refer to the aseiqnee, All nuch assignments and agreements of attornment shall be recorded in all place. of public record permitted or required by law upon the request of the Le.sor, the assignor or the as.iqnee. A..ignment hereunder .hall not, however, operate to relieve L..... or any gusrantors hereof of liability hereunder without the writt.n con.ent of Leseor and the Mortgagee. 8, Acceptance of rent by the Lessor trom eny assignee or other dealings by the Leesor with any a..ignee without Lessor'. consent to such assignment shall not ot themselvee operate to .ubstitute such a..ign.. in place of the Lessee hereundor to or relieve I the L..... of any of it. obligations under this instrument. C. Le.see may at any time during the term. hereor subl.t any part or part. of the demised premises to any corporation, association, trust, partnership or individual, provided, however, that such corporation, a.sociation, trust partner.hip or individual shall be approved in writing by the Lessor as financially rospon.ible with respect to probable ability to meet the rent payments for the balance of the term, which written approval shall not be unreasonably withheld. Any .ubletting of the premiae& ahall not reli.ve L..... of its primary obligation. under this lea.e, D, Lessor shall have, at any time during the term her.eof or prior to its commencement, the right to as.ign its interest herein to any bank or other lending institution a. full or partial security tor indebtedne.. secured by the demi.ed premise., and Lessee shall execute in recordable form any documents necessary to etrect .uch assignment, Notwithstanding anything herein to the contrary neither this l.a.. nor any right. hereunder shall be assigned, nor any part or the leased premises sublet by Lessee without the prior written consent of any Mortgage.. 10. CONDEMNATION. In the event the whole or any part or the demis.d premises .hall be damaged, injured, condemned or taken as a r..ult of the exercise of the power of eminent domain or of private purchase in lieu t.hereof, or by the exercise of any oth.r power or government, the amount ot any award, settlement or paYJllent ("award") representing compensation therefor shall belong entirely to Leesor. Rent shall continue without abatement in such event except in the -5- ca.. of a partial or complete damage to or taking ot the i.provements de.cribed herein, in which latter event, an equitable reduction in rent shall be made baaed upon u..able apace eo damage oc take; oc Lessor may, at its option, repair or replace such damage or taking and rent will continu. without abatem.nt thereafter, 11. LESSEE'S COVENANTS. Th. Lessee hereby cov.nants and agrees with the LeSBor that during the term of this lea..1 A. The Le.... will pay the rent at the times and in the mann.r herein provided, 8. The Lessee, at its own expense, end not at the expense or the Lessor, will keep, repair and maintain the interior and exterior of the leased premises in the .ame good quality and condition, making any required ' repair. and maintenance promptly, reasonable u.e and ordinary wear and tear excepted, C. Th. Lessee will save Lessor harmless and exonerate it from and against all lOBB, damag., liability or exp.nse occasion.d by the alleged or actual wrongful or neglig.nt acts of the L.ss.e or its employees, agents or guests or ot independent contractors engaged on the premiees of or paid by the Lessee, 0, The Leseee ehall comply with all la~tul orders of any r.deral or municipal authority, or of the Commonwealth of pennsylvania, its boards, commissions, agencies or d.partments, or the officers thereof, having jurisdiction to issue the same, which may be necessary for the occupancy of the leased premises or the operation of Lessee's busin.ss thereon, and if Lessor shall incur any expense in connection with the same, Lesse. shall pay the same to Lessor, or if Lessee fails to pay the ~am., L.ssor may collect the same as additional rent hereunder, E, Th. Lessee expressly covenants that it shall do no ect or fail to do any act which (1) shall in any way encumber the title of Lessor in and to said premises, or (2) shall in any mann~r subject the interest or estate of the L.ssor to any claim by way of lisn or encumbrance, whether claimed by operation by law or by virtue of any .xpressed or implied contract by the said Lessee, Th. L..... acknowledges that any claim to a lien upon the said leased premises arising trom any act or omission of the Lessee shall accrue only against the leasehold estate of the Lessee and shall in all r..p.ct. be subj.ct to the paramount title and rights of the Lessor and any mortgage in and to the said pr.mi..., F. The Lessee agrees not to .nter into any contract with any person, firm or corporation, for labor, -6- 717.7~J.7J97 ro, "7 764 4191 PAGE'IJ 8.~vices or materials in connection with any buildinq to be placed upon .aid premise. or to be rebuilt or remodeled thereon, which contract involves an amount in exce.. of Five Hundred Dollars ($500,00) unless it shall be stipulated in and be 4 condition of such contract that no liens shall arise or be claimed on account of suoh contract or on account of any work done or material furnished under said contract as against the title or intere.t of the Lessor and Baid premis.s, or unless euch contract provid.. that the contractor, p.r.on, tirm or corporation shall waive all rights th.~eto, 12, INSPECTION AND REPAIRS BY LESSOR. Lessor re.erve. the riqht to enter upon the lea.ed premises durin9 business hours to inspect the same and to make neee..ary repairs in the event Les.ee fails to make such repairs within thirty (30) days after notice to Lessee by Lessor, and in such event the coat of such repairs .hall be payable to Leeeor ae . additional rent hereunder. 13. SURRENDER UPON TERMINATION. A, Lessee hereby agrees peacefully to surrender the le..ed premises to the Lessor at the expiration or .ooner termination of the term hereof. 8, At any time durinq the le.se term, Lessor shall have the riqht to offer the leased premises for sale and to show prospective purchasers the leased premises and turther shall have the riqht to qive Lessee nine month. notlce ot earlier termination of the lease. In the event that Lessee is qiven notice of early termination ot the lease, Lessor agrees to pay Lessee $35,000,00 per year, prorated tor any partial year, for the period trom the Lessee's actual surrender ot the l.a..d premi... in the event of early termination ot the lea.., Lo..ee shall have no other riqhts aqainst Le.sor tor early termination at law or in equity. 14. EFFECT OF WAIVER OF BREACH, No waiver by the Lessor and no assent, expressed or implied, to any breach on the part ot the Lessee by the Lessor ot any provision, covenant or condition herein contained shall be held or construed as a waiver of or assent to any breach ot the same or any other covenant or condition. 15, DEFAULT. In the event ot any default by Lessee under and pursuant to the terms and conditions ot this lease, whether in the payment of rent or the failure to pertorm or observe any of the covenants, agreements, provisions or conditione herein contained, such default remaining uncured ~ '~tter thirty (30) days written notice thereat by Lessor to '---Le.see, (Lessee being deemed not to be in default it ----following notice of default requiring performance ot construction or repair work to cure, Lessee shall have promptly commenced such work and have proceeded or be -7- . . proceeding to the completion thereof with all due diligenc.), or in the event the L.....'. e.tate in the leas.d premi.ee shall be levied upon in execution or by other process ot law and said execution or other proc... in not stayed or satietied within twenty (20) daye trom the date ot the isauanc. thereot, or in the ev.nt there shall be filed by or a9ainst L..... any petition under the Bankruptcy Laws or any insolv.ncy law., or Lessee shall assign any or allot it. property to or for the benetit ot it. creditor., or if a receiver shall be appointed tor all or any part of its property, and it .uch bankruptcy or insolvency proc..dings, or assignment for the benefit ot cr.ditor., or the appointment ot a r.ceiver, shall not be discharged, vacated, dismissed or otherwise terminated bnd ended within thirty (30) days after the tiling of the eame or a valid appeal taken therefrom i. ponding, then in any of such cases, L..8or~ may, upon the expiration of said period of time, or at any ~ time thereafter, and without further demand or notice, enter. upon and into the l.a.e premi.e. and repossess the same a. of its former estate and .xp.l and evict the Lessee and tho.e claiming under it, all without prejudice to any other remedy which might otherwise be taken to recover rent in arrears, or tor any other breach or detault by the Les8ee, and upon such entry as atoresaid, this leaee shall terminate without prejudice to the rights of the Lessor hereunder which may be exerci.ed atter the end of the term of this lease, No release ~rom any expulsion or eviction as above provided, nor the recaipt Ot Any rent after d.tault as above provided, shall be deemed a waiver of Lessor's rights hereunder, Further, in the event of any default as above provided, or in the event of the continuance of any bankruptcy, execution, insolvency, assignment, or receivership proceeding as above set forth, for the .tat.d periods of time, or ths issuance ot any execution process, (WhiCh event shall constitute a default hereunder) then the rent for the balance of the term hereof, together with any rent in arr.ar., shall, at the option ot Lessor, at once become due and payable and shall be collectible by Lessor'. distraint and .hall be first paid out ot the proceeds of the said execution, assignment or bankruptcy, any law, usage or custom to the contrary notwithstanding, without waiving any other right to collect damages tor such detault by Lessee. 16, EJECTMENT AND CONFESSION OF JUDGMF.NT. At the end of the term hereof, or in the event of default as described in Paragraph 16 above, which default shall not be cured by Lessee within the periods stated, Lessoe agrees that tollowing a written notice by the Lessor to the Lossee ot intention to do so not le.s than ten (10) days prior to such entry (WhiCh ~en (10) day period may run concurrently with the notices provided for in Paragraph 16 above) an amicable action at ejectment may be entered in tho Court of Common Pleas of Cumberland county, P.nnsylvania, in which Lessor, its successors and assign., shall be the plaintiff and Lessee and/or any other party in possession shall be the defendant, -8- " and that jUdgment may be entered in tavor at the plaintitt tor the po.s..sion ot the leas.d premi..., and that a writ ot poss..sion may b. i..u.d thereon, with costs, waiving error. and detects, r.iqht of appeal or stay. Less.. h.r.by .mpowers any attorney to appear tor it in said amicable action in ejectm.nt in .aid Court, an~ confe8s judgment ther.in, with oosts, in favor of Leesor, its successor. or assigns, Any jUdgm.nt ent.r.d hereunder shall provide only tor .jeotm.nt and possesuion of the leased premis.s, and costs, and shall not include any other damages. Such authority shall not be exhausted by one exerci.. ther.of but judgment may be contessed as atoresaid from time to time. 17. CONFESSlON OF MONEV JUDGMENT, In the event at any default in the payment at rent by te.se. or any breach ot any covenant to pay any amount due or to become dU$ Les.or under the terms of this Lea.., L..... does hereby empow.r any attorn.y ot any court of record to app.ar tor Leeses, and, with or without deolaration, to confess judgment again.t Lessee, and in favor ot L...or for the sum ot the rent then due and/or tor thd .um due by reason at any breach at any covenant by L....., with costs ot .uit and an attorney'. commie. ion of fitteen per cent (1~') for oollection, and to issue writs ot execution thereon with relea.. of all error a and without stay of execution, L...ee hereby waives the right of inqUisition, and ext.nlion upon any levy on any real ..tate and hereby voluntarily condemns the same, and the exemption of any and all prop.rty from levy on any real ..tate, and hereby voluntarily condemns the sa~e, and the eXe~ption ot any and all property trom levy and sale by virtue at any .xemption laws now in foroe or which may be hereatt.r passed is also expr..sly waived by lessee. Such authority Shall not be exhaulted by one exercise thereat but judgm.nt may be cont....d as aforesaid from time to time, lB. NOTICES, Any notiae, demand or requ..t required or provided for by this instrument shall be deem.d to have b.en duly qiv.n or made, it 1n writing and sent by registered or certified mail, poetage pr.paid, addressed to the party to be bound thereby at ouch addre.. set out below, or such other place as the parties may from time to time designate in writing: . It to t.ssor: ERrORD DEVELOPMENT COMPANY CIO Louis Berger Trust IBAprilB4 100 HalsteJ Str..t East Orange, NJ 07019 Attention: Fredric $, Berger, Trustee If to Lessee: BENATEC ASSOCIATES, IHC, 101 Ertord Road Camp Hill, Pennsylvania 17011 " -9- 19, QUIET ENJOYMENT, Lesuor covenants t.hat the Le.... on paying the rent herein re..rved and performing the cov.nants above .et torth uhall and may peaceably and quiutly hav., hold and enjoy the .aid demised premises tor the t.rm afor.said, ~O, GOOD TITLE. Lessor covenants to and with Lessee that Le..or has qood title to the land subject to this Lea.e and to the building erected thereon and that it is duly authorized by law and by appropriate action of it. member.hip to enter into this Lease. ~1. CONSENT BY LESSOR, the con.ent of the Lessor is be unreasonably withheld. 22. CONSTRUCTION, Whenever requir.d by the context herein, references to parties shall include their respective SUcce..ors and assigns (SUbject to the limitation of I Paragraph 11) to one gender shall include all genders, and to ths singular the plural. wherever in the foregoing leatie requir.d, such consent shall not 23. ENTIRE AGREEMENT. This lease constitute. the entire agreement between Lessor and Lessee and may not be modified or amended except in writing signed by the parties hereto, 24, RECORDABLE MEMORANDUM. The partie. hereto agre. that they will execute a memorandum of this lease duly acknowledged and that the sam. shall be recorded in the office of the Recorder of Deeds of Cumberland county, Pllnn.yivanta. IN WITNESS WHEREOF, each of the partie. hereto has caused this instrument to be executed in its name and behalf by it. duly authorized representative as of the day and year above writt.n. '-~. LESSOR ERrORD DEVELOPMENT COMPANY L~r~ Fredric Berger, Truste., Par.tner ~ (; .X r-~ An~D' sln eusanio Part ,7 U ' , ,r.T{2, 14- Partner WITNESS: ~ An" I / ( wi), ( LESSEE B TEe INC, J mea Scheiner, President uly authori zed (SEAL) -10- I,~' 27 F"ROM' 8E~iATIEC A550<: tATE5 717.763' 739" ra,n7 7GoI 01191 PAGE~03 ESTOPPEL CERTIfICATE Re, I..ase dated October 25, company lthd "t.andlord" 1 "Tenant "I. as amended and 1991. billtwe>2n Erford Cevelopment: ar.d Benar,ec Associ.ate". Inc. (the llupplemillnted (the "l.ease"). Oear PA 240 Associ.ates: This [.toppel Certificate ill furnished to with the proposed assignment of the t.ease and improved real estate, The t.andlord and Tenant you, your .uccessors and assign., that, 1, The Tenant i. in posee..ion under the Lease; 2, The Tenant has paid the basic monthly rent due under the Lease. in the amount of $9.000,00, for the period ending July 31. 1997; 3. The Tenant hall paid all obHgationa due under the Le..,e for 1997, 4, The Lease has not been modHied. amended or otherwise changed in writing lif untrue. set forth the dates of all instruments conta~n~ng such modif icati'Jns. amendments and other changes at the end of this clausel ; S. The t.eall>!! has not been modified, amendo!d or othu'wise q.1 chang>!!d in any other manner '6:~"'"t T\olt." ~~'cs:."1YV-GNH 0('=0 ~J;.., , ,'I 't ~~ . ......~... ~p...." ~,~ ~". l'lq t I . 6, To tho! best of its knowledgd. Landlord is not in default: ~ in the performance of any of its obligations under the Le.5se a. !if Landlord, ,YL c 7, To the best of Landlord's knowled~e. there is no ~A conditicn or set of facts which ~~t~ ~~~. ~F ~irne and/or t~~~~ gj u; "g "p ..,~~ j r...... would constitute a default by the Landlord in the (/fit' performance of any of its obli~&tions under the Le.iSo!l; :/,J-.. a. Neither Landlord nor Tenant has any knowledge that Tenant is in default In the p>!!rEcrmance of any of its obl~gations you in connection attendant .ale of hereby confirm to e:cpenses and other Tenant the period ending July 31, under the Lease; 9, Landlord has r.o know:edge of an:' condit~on facl':s whi.ch \.#1...l. roOt,",!; ~a,;:,~agt. sf t:.'~z. .1R:t/Q'" ..~.. g;,jlng EXHIBIT "B" or set of "' "",.,- ~~ ~ . Ji 'Iii " 'I , , " IIBIDI'!! "a" ", " , ' " i' " , " " " , L j' \ , '.i , ' " " " , , " .. . BENATEC ASSOCIATES, INC., I IN THE COURT OF COMMON PLEAS petitionel:' I CUMBERLAND COUNTY, PENNSYLVANIA I C"b' v. I NO. r~7-4'J{)c> I PA 240 ASSOCIATES, I Respondent I CIVIL ACTION - EQUITY c: () ~/P /...1711-/'1- /II l'QvITY -, AND NOW comes the Petitionel:', Benatec Associates, Inc., by and through its attol:'neys, Wix, Wenger & weidner, and seeks issuance of a Preliminal:'Y and Special Injunction pursuant to Pennsylvania Rules of Civil Pl:'ocedure No. 1531, and in support alleges as follows: 1. Petitioner is Benatec Associates, Inc., a cOl:'poration providing professional engineering and related services and having offices at 101 Erford Road, camp Hill, Cumberland county, Pennsylvania. 2. Respondent is PA 240 Associates, a partnership having offices at 110 Sunset Avenue, Harrisburg, Dauphin County, Pennsylvania. 3. The subject matter of this action is the threatened disruption of Petitioner'S occupancy of the premises at 101 Erford Road by Respondent, 4. Petitioner is the lessee of the premises. 5. Respondent is the lessor of the premises by way of assignment of the written lease and infol:'mal amendatory transactions, all described below. , , " 6. Petitioner entered a written lease with the prior owner ot the premises, said lease having a stated term ot five years beginning April 1, 1992. A copy ot the lease is attached as Exhibit "A". 7. The term of the lease was extended by informal agreement of Petitioner and the original lessor. 8. On or about July 14, 1997, Respondent entered upon a purchase agreement with the original lessor, whereby Respondent acquired title to the premises and received an assignment of the original lessor's interest in Petitioner's lease, 9. At or before the time of settlement, Petitioner stipulated with the original lessor that Petitioner would hold over occupancy of the premises beyond the stated termination date. Petitioner and the original lessor evidenced said stipulation by a writing entitled "Estoppel certificate" dated July 14, 1997. A copy of said Estoppel certificate is attached hereto as Exhibit "Bit. 10. Said Estoppel certificate was delivered to and accepted by Respondent at or before settlement on its purchase of the pr.em.i.ses. 11. Respondent accepted said Estoppel certificate, raised no objection to Petitioner'S continued occupancy, and accepted one or more payments from Petitioner. 2 . 12, Verbally, prior to August 28, 1997, and in writing on that date, Petitioner advised Respondent that Petitioner would vacate the premises on October 4, 1997, A copy of the writing by which said notice was given is attached hereto as l::xhibit "C". 13, On or before August 28, 1997, Petitioner paid to Respondont rental payment for the period September 1 through October 4, 1997. The amount of said payment was at the same ra~e as was previously charged under the leasa. 14. Respondent has given no notice to quit, adequate within the provisions of 68 P.S. S 250.501, which provides in relevant part: A landlord desirous of repossessing real property from a tenant may notify, in wr.iting, the tenant to remove from the same at the expiration of the time specified in the notice under the following circumstances, namely... In case of the expiration of a term or of a forfeiture for breach of the conditions of the lease where the lease is for any term of less than one year or for an indeterminate time, the notice shall specify that the tenant shall remove within thirty days from the date of service thereof, and when the lease is for one year or more, then within three months from the date of service thereof. 15. At or about 3: 10 p. m, on Thursday, August 28, 1997, Respondent, stating dissatisfaction with the amount of the rental payment made by Petitioner, telephoned Petitioner and stated that on or about September 2, 1997, Respondent would enter the premises, 3 1. _....~ . regardless ot Petitioner's objections, and would remove or render inoperable the premise's eleotrical, heating, and ventilation tacilities and take such other measures as may be required to render the premises uninhabitable. 16. Petitioner avers it is in lawful possession of the premises and said lawful possession continues through October 4, 1997. 17. Petitioner believes the action threatened by Respondent will occur if Respondent is unrestrained, and that such action will constitute an illegal physical seizure of the premises and eviction of Petitionor. J.8. Petitioner avers that its physical eviction by Respondent by rendering the premises uninhabitable is inequitable and contrary to law. 19. Physical eviction of a tenant by a landlord is illegal in pennsylvania under the provisions of The Landlord and Tenant Act, 68 P.S. 250.501, which provides the exclusive remedies of the landlord, and the case law interpreting the Act, See Lenair v. Camcbell, 31 D. & C. 3d 237 (1984), 20. Petitioner believes and therefore avers that such physical eviction is imminent and will occur unless this Court enters an Order prohibiting such physical eviction. 4 21. Physical eviction as threatened by Respondent will render petitioner incapable of conducting it. bu.ine.. during the period September 1 through octobor 4, 1997, and will irreparably impair Petitioner's future business to an undetermined but substantial extent. 22. The relief requested by Petitioner is necessary to prevent immediate and irreparable harm which cannot be compensated by damages because the complete incapacity to do business, caused by Petitioner's physical eviction from its offices, will destroy its ability to perform its existing business obligations, will impair its ability to obtain future business, and will diminish good will and reputation which are ellsential elements in the professional engineering services business in which Petitioner is engaged. 23, Greater injury would result by refusing the requested relief than by granting it because rental for the period in questlon has been fully paid by Petitioner, Respondent has known and has planned for Petitioner's occupancy through October 4, 1997, so that even if Petitioner's occupancy is ultimately found to have been unlawful, Respondent would have been paid for the use of the premises and will have incurred little or no injury on account of Peti tioner' s occupancy. conversely, if the requested relief is denied, Petitioner will suffer substantial harm in the form of disruption ot its business activity as described above. 5 24. The requested reliet will maintain the relative status ot the parties until such time as their respective legal rights can be adjudicated. conversely, it the requested reliet is denied, physical eviction ot petitioner will dramatically change the status ot the parties and will inflict upon Petitioner substantial injury, which may not be adequately compensable by money damages. 25. The activity sought here to be restrained is the physical eviction ot a tenant by a lessor without recourse to legal process. Such activity is clearly actionable under Pennsylvania law and will be prevented by the requested relief. 26. Petitioner's right to the requested relief is clear in that Petitioner seeks to rostra in physical eviction by a lessor, an activity which is clearly illegal under Pennsylvania law. 27. Petitioner has no adequate remedy at law to redress the impending harm from Respondent's threatened action. 28. Unless the requested relief is granted, Petitioner will sufter immediate, substantial, and irreparable injury as a result of Respondent's threatened physical eviction in that: (a) Petitioner will lose substantial business opportunities and profits on account of the loss of the premises that is its office and base of operations; and (b) Petitioner will lose good will and reputation on account of its inability to conduct its professional service business activity. 6 29. Unless the requested reliet is granted, Petitioner will sutter immediate and irreparable harm betore a hearing can be held I on this subject matter in that the physical eviction, threatened by Respondent, will occur within a time earlier than a hearing can be held. Moreover, lJhysical eviction is so clearly illegal under Pennsylvania law that it is highly unlikely that Respondent could establish a right to such physical eviction if a hearing were held. 30. Because rent for the period in question is fully paid, and because the relief requested would restrain a clearly illegal act of physical eviction, Petitioner believes a bond is inappropriate in the instant case and, therefore, requests the Court to waive bond or set bond in a nominal amount. 31. Because performance of the threatened action would cause immediate and irreparable harm to Petitioner, and would occur prior to tho time a hearing could be held on this Petition, Petitioner requests this Court to order the requested relief prior to any hearing on this subject matter. 32. Entry of a preliminary injunction to prevent the performance of threaten acts is a proper use of equity powers. See Philadelohia Gas Works Comoanv v. Philadelohia, 331 Pa. 321 (1938) . WHEREFORE, Petitioner, pursuant to Pa. R.C.P. S 1531(a), requests that a preliminary injunction be granted by this Court restraining Respondent from any action disturbing the habitability of the premises by Petitioner or disturbing Petitioner's quiet 7 AUG-20.97 14127 FROMI8EN~TEC ~Ssn~I~TES 717-763-7397 TOI717 7644191 I PAGE '07 10/.2S /~ t LEASE THIS INDENTURE made and executed this ____ day of , 1992 by and between ERFORD DEVELOPMENT COMPANY, a partnership, with its principal office in East Orange, New Jersey, hereinafter called >>LESSOR", party of the rirst part, AND DENATEC ASSOCIATES, INC., a Pennsylvania corporation having its principal ottice in Camp Hill, pennsylvania, hereinafter called "LESSEE", party of the second part; WITNESSETH: The Lessor doen hereby lease unto Lessee all those certain premises set forth in the description thereof which is attached hereto and made a part hereor as Exhibit "A", known as 101 Ertord Road, Camp Hill, Cumberland County, Pennsylvania, and the structures erected thereon, togother with all easements, rights of way and rights of acc.as appurtenant thereto, upon the following terms and conditions: 1, TERM OF LEASE. The term of this lea~e shall be for a period of five (5) years commencing on the 1st day of April, 1992, unless sooner terminated by Lessor pursuant to paragraph 136. 2. RENT. Lessee shall pay rent for said premises at such place as designated by Lessor in writing as follows: The base rent for the term ot the lease shall be ~ive Hundred Ninety-~ive Thousand ($595,000.00) dollar., payable as tollows: Beginning with the first day of the month coincident with the commencement ot the term hereof as provided above, Lessee shall pay rent for the remainlng ter.m of this lease in equal consecutive monthly installments of Ten Thousand Dollars ($10,000.00), with the first month to be reduced by a five thousand ($5,000,00) signing bonus, so that the first month's rent will be five thousand ($5,000,00) dollars, payable on the first day of each month thereafter, the tirst such payment to be made on the first day of the tirst month of the term as set forth above, with appropriate adjustment in the monthly installments in the last month if not a full calendar month, Said base rent shall be based on a triple net lease, Under this triple net lease, Lessee shall be responsible tor payment of all expenses including but not limited to real estate taxes, insurance, utilities, g8S, electric, sewerage, telephone, maintenance, snow removal, garbage removal, cleaning, Banit~tion, assessments, and any other expenses in connecti~n ..xcn ~ne leased premises with the exception of oapital improvements. -1- Al)G-20 97 14128 FRO~lleEtIATE( AS'30([AfES 717-763-,'3"17 fOI717 764 4191 PAGE, 08 3, PAYMENT or TAXES AND ASSESSMENTS, The Lessee shall pay all taxes that may be imposed, assess.d or levied upon the leased premi..s or property thereon or any part th.r.ot, or upon the earnings ot L.ssee as the aame shall become due and payable. L.ases 6hall promptly pay all special assessments properly levied ag~inBt tho premises for local gov.rnments, provided howev.r that L.ssee may conduct proc.edinqs to contust or reduce any tax or other levy or as....m.nt against the premises, in tho name of Lessor, at the sole cost and expense of Lessee, 4. CASUALTV INSURANCE. Lessee sha 11 keep all buildings and improv.ments now or hereaft.r erected upon the leased premises ineured for the benefit of the L.ssor and any Mortgagee, its successors and assigns, 4S their interests may from time to time appear, against 10BB by fire and other ca.ualti.. and hazards u.ually cover.d by extended coverage insurance, in an amount not less than the replacement value at the leased premises (excluding foundations and oth~r parts' below the surtace of the lowest floor), a. d.termined, if desired by Le~eor, not more than once annually by an apprais.r or rating bur.au .atisfactory to Lessor'. Allot such pOlici.s shall have endorsed thereon standard lessor and mortgagee clauses in favor of the parties stated above in this paraqraph, Also, the aforesaid pOlicies shall have attached thereto or the Lessee shall provide Loss ot Rental Insurance, insuring the Lessor and any Mortgagee against loss of rental for a period ot not less than one year and in an amount equal to the gross aggregate rental receivable during that period by Lessor hereunder, or Business Interruption Insuranc., insuring all fixed charges of Lesse., including the amount n.cessary to pay rent hereunder, for a period of not l.ss than one year. Such polici.s of insurance shall be delivered to and held by the L.esor and/or any Mortgage. its euccessors and assigns. The Lessor and/or any Mortgagee shall have the right to settle all claims under such policies and Inay demand, receive and r.ceipt for all moneys becoming payable thereunder, provided, hQwever, that, with the written approval of any Mortgagee, insurance proceeds payable thereunder in the amount ot Twenty-five Thousand Dollars ($25,000.00) or less shall be paid over to Lessor for use in restoration or repairs to said premise., and provided that any proc.eds of insurance under the Loss of Rental Insurance or Business Interruption Insurance received by the Lessor or any Mortgagee shall be refunded to L.ssee, SO long as Less.e is not in default hereunder, and Lessor is not in default under any said mortgage. Any such proceeds in the amount of Tw.nty-five Thousand Dolla~s ($25,000.00) or more shall be paid by the insurer to the Mortgagee and the Lessor a. their int.rests appear, and shall be appli.d by them toward the alt.ration, rQconstruction, repair or restoration ot the damaged portion of the leased premis.s in accordance with the original plan. and specifications. The Lessee shall deliver to L..eor and/or any Mortgagee, itA successors and assigns, evid.nce of payment of all premiums due on such insurance, together with certificates of such insurance, and -2- f~G-i?O 97 14:2? ':RO~I:8E~I~)TEI: ..-6~nl-IHTES 71,-.b).7)97 TO:?I? 764 .U'31 PAGE I 09 all such policies shall contain ~roviBion tor written notic. to L...or and said Hort9agee not le.. than ten (10) days in adv4nco of cancellation thereot. In the event of the failure of Lessee to insure or keop the .am. in.ur.d a~ atoresaid the Lee.or may do all thin9s ne~~SBarV to secure or maintain in force .uch insuranc., and any moneys Bxpanded by it for that purpo.. .hall be payable by Lessee to Leanor on demand and may b. recovered as rent in arrears hereunder. In no event shall there by Bny abatement whateoovor in tho term or this lease for rent due and payable hereunder by reBDon of any interruption or interfer.nc. with L.....'s use and occupancy of the lea..d premises by roason of any calamity, nor shall any such interruption or intsrterence be deemed a constructive eviction of Lessee trom the demis.d pr.mises. Anything in this paragraph to the contrary notwithstanding, in the event any casualty occurs ot such magnitude that r..toration or reconstruction would be uneconomic in the opinion or Le..or, and it ths inBurancB proceeds payable ae a. result th~reof are sufticient to repay in full any mortgage rererr.d to above, then Lessee and Lessor shall .ach have the right and option to terminate this leaee, and the proceeds or such insurance shall in such event be used to discharg. such indebtedness. Upon payment of all such indebtedness and such termination hereor, L.ssor shall be entitled to any excess insurance proc..ds. 5. INDEMNIFICATION AND LIABILITY INSURANCE. The Lessee will save harml.ss and indemnify the Lessor trom and aqainst all loss, liability or expense that may be incurred by r.ason of any and all claims or demands from any person or persons whatsoever from 10s6, injury or damage suffered or alleged to be suffered by reason or or in connection with the occupancy and use of the said leas.d premises by or und.r the L..s.e, its agents or employees and Lessee shall maintain in torce at all times during the t.rm hereof required Workmen's Comp.nsation Insurance cove rag. in the statutory amounts, and liability insurance in usual form in an amount not less than One Million Dollars ($1,000,000.00) insuring the interest. of Le.sor and Lessee, in an insurance company or companies satisfactory to Lessor. 6. UTILITIES. Th. Less.e shall promptly pay all charges tor gas, el.ctric, sewage, garbage removal, snow removal, cl.aning, sanitation, water and any oth.r utility or .ervic. furnished to or consumed by Lessee upon the leased premises Which may become payable durin9 the term of this l.a.e. In the event Lessee shall fail to pay the charges for any of the aforesaid utilities or servic.s or premiums on ineurance as they become due, the Lessor shall have the right to pay same and to coll.ct the amount eo paid as rent in arrellrs. 7. equipm..nt on behalr TITLE TO EQUIPMENT. installed or placed ot l.essee whIch can Title to any machinery or upon the l.ased premises by or be r.mov.d from the premis.. -1- AlJG'20 97 14130 FROI't'SENATE( ASSll<:!ATES 717-,63-7397 TO' 717 764 4191 ( PAGEl 10 without causing material damage to th~ ~tructure. shall remain the property ot the Lessee, including any computere. Th. Lessee cov.nants that it will remove the said machinery or .quipment within thirty (30) day~ atter the end of the term ot the leaBQ BnQ will repair at its own expense any damege cau..d the leas.d premises or structures erected thereon in the course of such r.moval. All machinery or equipment of any kind that may be on the pr.mi..s ~urinq the t.rm ot this lea.e shall be so uituated at the risk of the L....., and the L..sor shall not be liablo to the Leseee or any other p~rson for any injury, 10.. or damage to any person or property on the premises. 8. ALTERATIONS ANO RE~AIRS. Th. Lessee at ita sole cost and expense may make any r.asonabl. alteration, addition or change in the buildings or structures on the leased premis.., provided, however, the Lessee shall not make any alteration in the ext.rnal elevation or architeotural design' of the buildings or structures on the pr.mis.s or injure or remove any bearing wall or .upporte thereof without the prior written consent of the Lessor. All usual and necessary r.pairs, normal wear and tear excepted, shall be made by Lessee. If the maintenanoe and repair responsibilities are not undertaken on a current basis the Lessor shall have the right but not the responsibility of undertaking such repairs and maintenance and or charging Les... tor the same as additional r..nt her.und~r.. If the Lessee breaches its responsibilities h.reunder in addition to all other right., LBssor shall have the right to apply any deposit or oth.r tunds it holds for Lessee to pay such obligation and shall have the ri~ht to offset any maintenance and repair responsibillties against any runds due, inCluding but not limited to, any funds due from Lessor to Less.. as ',ompensation for early termination of this leaee pursuant to Paragraph 138. of this lease. 9. ASSIGNMENT AND SUBLETTING. A. The Lessee at any time atter the commencement of the term leas~ may assign this lease and all its rights under this in.trument, to any corporation, association, trust, partnership or individual, provided, howev.r, that such corporation, association, trust partn.rship or individual shall be approved in writing by the Lessor as financially responsible with respect to probable ability to meet the rent payments tor the balance of the t.rm, which written approval shall not be unreasonably withheld. The assignee in such event shall attorn to the Lessor by agreeing in writing with Lessor to pay the rent and carry out and p.rform all other cov.nants and obligBtions of the Lessee hereunder. Th.ncetorth, the assignee shall be substituted for the L..... and shall have all rights, duties and obligations of the Less.e hercunaer, includinq without limitation, the provisions of this p~ragraph relative to the right -4- AUG-20 97 14.30 FROMIBEN~TE( ASsnCIATES 7l7.7GJ.7397 TO' 717 764 4191 PAGE, 11 to as.ign the leaso, which right may be exercised from time to time by ~ny assignee tor the time bein~ on the terms herein provided. For the balance of the term thereafter reference. in this instrument to th8 Lessee shall be deemed to refer to the assignee. All such assignments and agreements of attornment Dhall be recorded in all places ot public record permitted or required by law upon the request of the Lessor, the assignor or the assignee. Assignment hereunder shall not, however, operate to relieve Les.ee or any guar4ntors hereof of liability hereunder without the written consent of Leseor and the Mortgagee. B. Acceptance of rent by the Lessor from any assignee or other dealings by the Lessor with any assigne. without Lessor's consent to such assignment shall not of themselves operate to substitute such assignee in place or the Lessee hereunder to or relieve . the L....e of any of its obligations under this inetrument. C. Lessee may at any time during the terms hereot subl.t any part or parts or the demised premises to any corporation, association, trust, partnership or individual, provided, however, that such corporation, association, truet partnership or individual shall be approved in writing by the Lessor as tinancially responsible with ~espect to probable ability to meet the rent payments for the balance of the term, which written approval shall not be unreasonably withheld. Any SUbletting of the premise~ shall not relieve Lassee of its primary obligations under this lea.e. D. Lessor shall have, at any time during the term hereof or prior to its commencement, the right to assign its inter.st herein to any bank or other lending institution as full or partial security ror indebtedness eecured by the demi.ed premise., and Lessee shall execute in recordable form any documents necessary to ettect such assignment. Notwithstanding anything herein to the contrary neither thi5 lease nor any ~i9ht. hereunder shall be assigned, nor any part of the leased premises sublet by Lessee without the prior written consent of any Mortgagee. 10. CONDEMNATION. In the event the whole or any part ot the demised premises shall be damaged, injured, condemned or taken as a result or the exercise or the power of eminent domain or of private purchase in lieu thereof, or by the exercise of any other power or government, the amount ot any award, settlement or paYJllent ("award") representing compensation therefor shall belong entirely to Lessor. Rent .hall continue without abatement in such event except in the -5- AUG-i:10 97 141 3" FROMI8E~IATE': ,1S'OIY [MES i'l 7 -7t;]-73'F TOll17 764 4191 PAGE 112 case ot a partial or completo damage to or taking of the il'4provem.nts described h.rein, in which latter event, an equitable r.duction in rent shall bo made based upon u..able Bpace eo damage or take; or LOSfior may, at itn option, repair or replace suoh damage or taking and r.nt will continue without abetem.nt thereaft.r. 11. LESSEE'S COVENANTS. Th. Lessee hereby covenants and agreeB with the Lessor that during the term of this lease: A. The Le.... will pay the rent at the times and in the manner herein provided. B. The Lessee, at its own expense, and not at the expense of the Lessor, will keep, repair and maintain the interior and exterior of the leased premises in the same good quality and condition, making any required repairs and maintenance promptly, re~sonable use and ordinary wear and tear except.d. C. The Lessee will save Lessor harmlesB and exonerate it from and against all 10s6, damag., liability or .xpense occasioned by the alleged or actual wrongful or negligent acts of the Lees.. or its employees, agents or quests or of independent contractors engaged on the premiees of or paid by the Lessee. D. The Lessee shall comply with all lawful orders ot any f.deral or municipal authority, or of the Commonw.alth of Pennsylvania, its boards, commissions, agencies or departments, or the officers thereof, having juriSdiction to issue the same, which may be necesBary for the occupancy of the leased premises or the operation of Lessee's business thereon, and it Lessor shall incur any expense in connection with the same, Lessee shall pay the same to Lessor, or if Lessee fails to pay the same, L.ssor may collect the same as additional rent hereunder. E. Th. Lessee expressly covenants that it shall do no act or fail to do any act which (1) shall in any way encumber the title ot Lessor in and to said premises, or (2) shall in any manner subject the interest or estate of the L.ssor to any claim by way of lien or encumbrance, whether claimed by operation by law or by virtue of any .xpressed or implied contract by the said Lessee. Th. Lessee acknowledges that any claim to a lien upon the said leased premises arising from any act or omission of the Lessee shall accrue only against the leasehold estate of the Lessee and shall in all r.sp.ets be subj.ct to the paramount title and rights ot the Lessor and any mortgage in and to the said pr.mi.... F. Th. Lessee agre.s not to .nter into any contract with any person, firm or corporation, tor labor, -6- t:lJG-20 '37 14'31 I'RO~1l8EtIArE': AS,.;,y!.HES j'17-76J.719,' TOlr'? 764 4191 PAGEl 13 services or materials in connection with any building to be placed upon said promise. or to be rebuilt or r~modeled thereon, Which contract involveR an amount in excess of Five Hundrod Dollars ($~oo.OO) unless it shall be st\pulatod in and be a condition ot such contract that no liens shall arise or be claimed on account of elloh contract or on account of any work done or material turnished under said contract ao against the title or interest of the Lessor and said premi.~s, or unless such contraot provides that the contractor, person, tirm or oorporation ehall waive all rights thereto. 12. INSPECTION AND REPAIRS BY LESSOR. LesBor re.erve. the right to enter upon the leased premises during bUBineos hours to inspect the same and to make neces.ary repairs in the event Lessee fails to make such repairs within thirty (30) days after notice to Lessee by Lessor, and in such event the cost of such repairs shall be payable to LeSBor as additional rent hereunder. 13. SURRENDER UPON TERMINATION. A. Lessee hereby agrees peacefully to surrender the leased premises to the Lessor at the expiration or sooner termination ot the term hereof. B. At any time during the lease term, Lessor shall have the right to offer tho leasud premiees for sale and to show prospective purchasers the leased premises and rurther shall have the right to give Lessee nine months notice ot earlier termination of the lease. In the event that Lessee is given notice of early termination of the lease, Lessor agrees to pay Leosee $35,000.00 per year, prorated for any partial year, for the period from the Lessee's actual surrender of the lea.ed premi.e. in the event of early termination of the lea.e. Lesse8 shall have no other rights against Le.sor for early termination at law or in equity. 14. EFFECT OF WAIVER OF BREACH. No waiver by the Lessor and no assent, expressed or implied, to any breach on the part of the Lessee by the Lessor of any provision, covenant or condition herein contained shall be held or construed as a waiver of or assent to any breach ot the same or any other covenant or condition. 15. DEFAULT. In the event of any default by Lessee under and pursuant to the terms and conditions ot this lea.e, whether in the payment of rent or the failure to pertorm or observe any of the covenants, agreements, provisions or conditione herein contained, such default remaining uncured ~'- ~tter thirty (30) days written notice thereof by Lessor to ---Les.ee, (Lessee being deemed not to be in default if ----fOllowing notice of detault requiring performance ot construction or repair work to cure, Lessee shall have promptly commenced such work and have proceeded or be -7- 1~131 FPO~IIBEtjATE': >lS';IYIATES 717-763-7397 proceeding to the completion thereof with all due diligenc.) , or in the event the L.....'. ..tate in the leased premie8s shall be levied upon in oxecution o~ by other prooes~ ot law and said execution or other proc.s. in not stay.d or satisfied within twenty (20) days from the date ot the issuanc. thereot, or in the ev.nt th.re shall be filed by or against Le.s.e any petition under the Bankruptcy Laws or any in.olv.ncy laws, or Lessee shall aBsign any o~ allot its property to or for the benefit of its creditors, or if a receiver shall be appoint.d for all or any part of its property, and if such bankruptcy or insolvency proc..dings, or assignment for the benetit of cr.ditors, or the appointment ot a receiver, shall not be discharged, vacat.d, dismisBed or otherwise terminated and ended within thirty (30) days otter the filing of the same or a valid appeal taken therefrom '.11 pend ing, then in any of such callie., Le&sor~ may, upon the expiration of said period of time, or at any ~ time thereafter, and without further demand or notice, enter. upon and into the le.s. pr.mise. and repossess the same a. of its torm.r estate and .xpel and evict the Leseee and those claiming und.r it, all without projudice to any oth.r remedy which might otherwise be taken to recover rent in arrearB, or for any other breach or detault by the Lessee, and upon such entry as atoresaid, this lease shall terminate without prejudice to the riqhtll of tho Lessor hereunder which may be .x.rcis.d aft.r the end of the term of this lease. No release from any expulsion or eviction as above provided, nor the receipt ot any rant atter d.tault as above provided, shall b. deemed a waiv.r ot Lessor's rights hereunder. Further, in the event of any default AS above provided, or in the event of the continuance of any bankruptcy, execution, insolvency, assignment, or rec.ivership proceeding as above set forth, for the .tated periode of time, or the issuance of any execution process, (which event shall constitute a derault hereunder) then the rent for the balanc. of the term hereot, tog.ther with any rent in arrears, IIhall, at the option of Lessor, at once b.come due and payable and shall be coll.ctibl. by Lessor'lI di.traint and shall be first paid out of the proceeds of the said execution, assignment or bankruptcy, Any law, usage or custom to the contrary notwithstanding, without waiving any other right to coll.ct damage. tor such default by Lessee. 16. EJECTMENT AND CONFESSION OF JUDGMENT. At the end of the t.rm her.ot, or in the ev.nt of default as d.scribed in paragraph 16 abov., which default shall not b. cured by Lessee within the period6 st.ated, Lesseo agrees that following a written notice by the Lessor to the Lessee ot intention to do so not l..s than ten (10) days prior to such entry (which t.n (10) day p.riod may run concurrently with the noticee provided for in Paragraph 16 above) an amicable action of ejectment may be entered in tho Court of Common Pleas of cumber.land county, p.nnsylvania, in which Lessor, itll Buccessor. and aSlligns, shall b. the plaintirf and Lessee and/or any other party in possession shall b. the detendant, -8- 0:0:;.2097 14132 FRO~118Etl'lrE( I'lssn':[>1TES 717-763-7397 rOI?17 ;'64 4191 PAGE'15 and that. judgment may be entered in favor of the plaintift for the posse.sion ot the leased premi..., and that a writ of possession may be i.sued thereon, with coats, waiving errors and defects, right of appeal or stay. Lessee hereby empowers any attorney to appear tor it in said amicable action in ejectment in said Court, and confess judgment therein, with costs, in favor of Lesbor, ita successor. or assigns. ^ny judgment entered hereunder shall provide only tor ejectment and possession of the leased premises, and costs, and shall not include any other damages. Such authority shall not be exhausted by one exercise thereot but judgment may be contessed as aforesaid trom time to time. 17. CONfESSION Of MONEY JUDGMENT. In the event ot any default in the payment ot rent by tessee or any breach ot any covenant to pay any amount due or to become due Lessor under the terms of this Lease, Lessee does hereby empower any attorney ot any court of record to appear tor Lessee, and, with or without declaration, to confess judgment against Lessee, and in favor ot Lessor for the Bum of the rent then due and/or tor the sum due by reason of any breach of any covenant by Lesse., with costs ot suit and an attorney's commission ot fifteen per cent (15'> for collection, and to issue writs of execution thereon with release of all errors and without stay of execution. Lessee hereby waives the right of inquisition, and extension upon any levy on any real estate and hereby voluntarily condemns the ssme, and the exemption of any and all property from levy on any real estate, and hereby voluntarily condemns the same, and the exemption of any and all property trom levy and sale by virtue of any exemption laws now in force or which may be hereatter passed is also expre.sly waived by lessee. Such authority shall not be exhausted by one exercise thereot but judgment may be contes.ed aB aforesaid from time to time. 18. NOTICES. ^ny notioe, demand or requ$st required or provided ror by this instrument shall be deemed to have been duly given or made, if in writing and sent by registered or certified mail, postage prepaid, addressed to the party to be bound thereby at such addre.s Bet out below, or such other place as the parties may from time to time designate in writing: It to Lessor: !RFORO O~VELOPMENT COMPANY C/O LouiB Berger Trust 18^pri184 100 Halsted Street East Orange, NJ 07019 Attention: fredric S. Berger, Trustee I f to Lessee: BENATEC ^SSOCIATES, INC. 101 Erford Road camp Hill, Pennsylvania 17011 -9- AlJG-20 97 14133 F"R01t8E~u.+TE( ~ls';r...'-t~HP; n?7~15.lY.li" IIJ' 71 7 764 4191 PAGE'16 19. QUIET ENJOYH~NT. LeHHor covenants thnt the Lessee on paying the rent heroin reserved und perfOrming the covenants above .st forth shall and may pH4co4bly and quietly have, hold and enjoy the .Bid demised premlBes for the term aforesaid. 20. GOOD TITLE. LeSBor covenants to and with Lessee that Le.sor has good title to the land Bubjoct t~ this Lease and to the building erected thereon and that it is duly authorized by law and by appropriate action ot its membership to enter lnto this Loaee. 21. CONSENT BY LESSOR. the consent or the Lessor is be unreasonably withheld. 22. CONSTRUCTION. Whenever required by the context herein, references to parties shall inclUde their respective successors and assiqne (subject to the limitation of Paragraph 11) to one gender shall include all genders, and to the singular the plural. Wherever in the foregoing lea.e required, such consent shall not 23. ENTIRE AGREEMENT. This lease constitutes the entire agreement between Lessor and Lessee and may not be modified or amended except in writing signed by the parties hereto. 24. RECORDABLE MEMORANDUM. The parties hereto agree that they will execute a memorandum of thie lease duly acknowledged and that the same shall be recorded in the Offic. of the Recorder of Deeds ot Cumberland county, Pennsylvania. IN WITNESS WHEREOF, Bach of the parties hereto has caused this instrument to be executed in its name and behalr by its duly authorized representative as of the day and year above written. 1 \_~. I,ESSOR ERFORO DEVELOPMENT COMPANY L~r~ Fredric Berger, Trust.e, Partner ~ ~ A r~~ An~D. sln eusanio Part I if!e. t?ft . / /. . ~ ~ Partner WITNESS: ~ ATTESt' i) / , I V~dAJ~ J . " ,/ ( Alo:r~~ J mes Scheiner, President u ly author! zed (SEAL) -10- 14,27 FROM'SEtlMEC ASSO<:IATES 717-763-7397 rOl7l7 764 4191 PAGE '03 ./ ESTOPPEL CERTIfICATE ReI Lease dated Occober 25, company (che "Lalldlord" I "Tenant"), as amended and 1991. bo!cwe~n Erford Development arod Bllnl1tec Ai6ociaces, lnc. (the l!Supplemer.ceo (the "Lease"). Dear PA 240 Associacesl This Estoppel CertifLcste is furnishe1 Co you in connection wlth the proposed assignment of the t..e~se and attendant .ale of improved real estate The Landlord and Tenant hereby conflrm to you. your successorS and assign.. that, l. The Tenant is in possession under the t..e~se; 2 The Tenant has paid the basic monthly rent due under the t..ease, in the amount of $9,000.00, for the pe!:'icd ending July 31., 1997 ; J. The Tenant hae paid all obligations due under the Lease for 1997; 4. The Lease has not been modified, amended or otherwise changed in writlng (if untrue, set forth the dates of all inst ruments cont~.l.n.l.ng such modif ieat l.:>nll, amendments and other changes at the end of tlus elaueel i S. The Lease has not been modified, amended 0.1.' otherwise cv. changed in any other manner '6=~~"''T T'>1'l."" ;.~,c;:.u1YV-G.NH O\- A\.~'~\ I t'l'l ~Vh , A-..'t> ~""..:u o'l'o''r 'l.", l<iq'l- I i<1" ~. To the best of its knowledge, Landlord is not in defaule ~ in the performance of any of its obligations under the Lease as If~ LAndlord. 'T--'- L 7, To the best of Landlord' 5 kncwledge, there is no ~.A condieion or se: of facts which ....~!!'l tn;;. C'as~r~. r'" ~ ime ~~# ~ g.i";"'g I'll !lQ~;r:...., would constitute a default by tne :'ar.dlord In the .....~f' performance of ar.y of its obligaeions under the Lease; ;~ a. Ne L ther Landlord nor Tenant has any knowledge that Tenant is in default In the perfcrmance oE any of its obl.l.gations e:cpensu and oeher Tenant tne ~eriod end.l.ng July a, unde r ehe Lease; 9. Landlord has no knowledge of any condit LOn !acr:s Which w.l...l~ I..l,oc; ~Q~.;;:la':l~ ef t':''fl~ :aRi.'Q~ .,~ gi'/~ "'''J EXHIBIT "B" or set of o. ""';00 ~~ J;L. '" ':' It " '.' . . ...' ... . , ' , , I, ' " ~ ~ ~ ~~ I l1l 'I ~~~ ~ 8 L ~~~~~ i~ I . Q~ ~s ~Q~o~ ~ ~I I~~ _~I'1.:!!...~rn Ii ~ s. ~~~ai'J < ~~ ~~~~'" ;i < t- o &i < ~Q m ~~~i~ ~ ~ ~.~ ~ .. 0 . oj z ... ~ ~ 0 . , I <'1 r" ~O '" ~ '. '"-l (1:1, I ;, ' f/) ."': II} ',I . 1" .I ,I:'.'] ", , ,-. , < '.o( I f.J'j ,I,J(-:J ; ~.:,' . . ,;~) ':,:,: . I :~J r;~) _i'''J;'I\I~ :< '- " .~ :q " " BINATIC ASSOCIATIS, INC., I IN THI COURT OP COMMON PLEAS OP petitioner I I CUMBERLAND COUNTY, PENNSYLVANIA V I I CIVIL ACTION - BQUITY I I NO. 97-4700 EQUITY TERM PA :240 ASSOCIATIS, I Re.pondent I QBt1ER OP COUR:r AND NOW, this 3rd day of September, 1997, hearing on tbe within preli~inary injunotion is oontinued generally. By the Court, ---/f9. /),~ Kevin/ . He.s, J. / , Thoma. L. Wenger, Esquire POl' the petitioner ./ c.~J"~.'" ,..,.~,.....( ol.L- 'i/II/ '1'1. '!',f. Miohael A. Pinio, Esquire POl' the Respondent lbg " J" " " '" " 'j,'i I, , I ! , " , , I '"~ I .11, ., . ,/ " ,,\/: :f!( " .;'\;(1:) , ," ~ , 8~ ... ",! 0 I JI.iU.) '';1 }JJv'lG:i ~,I,' :.;:;, '. ~O " .:;81:l::0'<Jill~ ~ ,,,,-... " , , ,I " I' .J I I " " " I I "::~~.'-::-""",/:"."-