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Consumers is entitled to possession of the Leased Premises due to MA'IT's default and failure to pay upon demand. 15. Consumers is entiUed to possession of Ute Leased Premises because Consumers has terminated MATI"s month-to-month tenancy. ~,Exhlblts ltB-l" and 1tB-21t. WHEREFORE, Consumers respectfully requests this Honorable Court to enter judgment in favor of Consumers and against MA'IT Corporation for possession of the Leased Premises located at 1200 Camp Hill By-Pass, Camp Hill, Pennsylvania and for such other and further relief as this Court deems proper. COUNT II . DAMAGES 16. Consumers repeats and realleges, and incorporates herein the averments contained in paragraphs 1 through 15 above. 17. Consumers asserts damages in the amount of $36,307.13 for MATI's failure to pay the agreed upon monthly rents as set forth herein for the Leased Premises through November 15, 1997. 18. Consumers also claims damages for tenant's unlawful detention of the Leased Premises in the amount of the Leased Premises' fair rental value from the commencement of this action up to and including the date of ejectment. -3- MATT Corporation P.O. BOX 901/2331 MARKET STREET 1 CAMP Hill. PA 17011/ (717) 737.3003 March 4, 1993 Larry Defuge, C.P.A. Consumers Financial Group 1200 Camp Hill By Paos Camp Hill, VA 17011 Dear Larry: Enc losed are diocussed. Please to our office. three (3) copies of the revised lease a~ execute all three (3) copies and return two (2) We look forward to your location and the move of our affiliated group. Sincerely, C-,k/2 d:- Charles R. Davis CRO: j s encloeures EXHIBIT A AllolU"'lflIIllHAnoul AGREEMEN'l' OF SUor,EASE '1'IlIS AGREEMENT OF SUDLEASE made as of the 29th day of January, 1993, by and between CONSUMERS LIFE INSURANCE COMPANY, a Delaware corporation, hereinafter referred to in the singular neuter gender as "I,essor", pa rty of the first part, and MATT Corporation, a Pennsylvania corporation, hereinafter referred to in the singular neuter gender as "Lessee", party of the second part. WITNESSETH That the 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, between the Lessor and the Lessee, does hereby demise, let and lease unto the Lessee a portion of the premises consisting of offices containing 2.556 square feet on the lower level of the building erected thereon, situate in Camp Hill. in the County of Cumberland, Commonwealth of Pennsylvania, known and numbered as 1200 Camp Hill By-Pass, (the "Premises"), upon the following terms, stipulations, cov,enants, conditions and agreements, all of which the parties hereto, intending to be legally bound hereby, cover.ant and agree to keep and perform: 1. Lessee shall have and hold the Premises under this Agreement of Sublease, subject to its conditions, for the full term of three (3) years, beginning on April 1, 1993, and ending on March 31, 1996, 2. Lessee hereby covenants and agrees that it will pay to the Lessor during the term hereof for the use of said Premises, and without demand therefore, a term rental in the amount of NINETY THREE THOUSAND NINE HUNDRED THIRTY THREE AND NO/I00 ($93,933.00) DOLLARS payable as followsl a. For the period beginning April 1, 1993, and ending March 31, 1994, without notice, the monthly rental payment shall be TWO THOUSAND SIX HUNDRED NINE AND 25/100 ($2,609.25) DOLLARS payable on the fifteenth ( 15th) day of each and every month for a period of twelve (12) months. b. For the period beginning April 1, 1994, and ending March 31, 1995, without notice, the monthly rental payment shall be TWO THOUSAND SIX HUNDRED NINE AND 25/100 ($2,609.25) DOLLARS payable on the fifteenth (15th) day of each and every month for a period of twelve (12) months. c. For the period beginning April 1, 1995, and ending March 31, 1996, without notice, the monthly rental 2 payment shall be TWO THOUSAND SIX HUNDRED NINE AND 25/100 ($2,609.25) DOLLARS payab le on the f.ifteenth (15th) day of each and every month for Il period of twelve (12 ) months. 3 . Le!lsor will pay for the followingl a. Electricity, water, sewer, trash removal; b. Real estate taxes; c. Fire, extended coverage and flood insurance on the Premises, excluding coverage of Lessee's personal property and improvements; and d. Common area maintenance on the Premises, including maintenance on the exterior of the building and sidewalks, parking lot repairs, snow removal, grass cutting and landscape. e. Janitorial service for common areas only. f. Identification signage in main foyer and rear entrance for all affiliates. g. Removal of smoking area at rear entrance as this will be MATT Corporation and affiliates' entrance. 4. Lessee will pay all other costs and expenses in connection with said Premisee including, but not limited to, the following I a. Improvements made by Lessee to the inter ior to accommodate Lessee's use of the Premises; not included in Exhibit A. 3 b. Liability insurance on Lessoe's operations on the Premises; c. Telephone; d. Interior repairs and any damage caused by Lessee and its visitors. e. Fire and flood insurance on Lessee's personal prope~ty including all improvements made by Lessee to the pr.emises. 5. The Lessor covenants that it is seized and possessed with good right and sufficient title to make this Agreement of Sublease and t.hat the Lessee shall and may peacefully and quietly have. hold, occupy, possess and enjoy the Premises for the term hereinabove set forth; provided, howevet', that the Lessee shall pay the rent, as set forth above, and shall keep, observe this Agreement of Sublease; and the Lessor further covenants that it shall defend the said right of the Lessee against any person or persons seeking to eject the Leseee from the said Premises. 6. The Lessee covenants and agrees that it will not carryon any unlawful or immoral business in or about the demised Premises, and will not carryon any business which will endanger the building on the Premises from fire or cause a forfeiture of or disproportionate increase in the cost of fire insurance that Lessor is carrying on the building. 4 7. All alterations, changes and additions to the Premises by Lessee, excluding those alterationa outlined in Exhibit A and including but not limited to furniture, furnishings, draperies, carpeting, lighting and telephone facilitiea shall be provided at the sole costs and expenses of Lessee. Except aa herein expressly provided. alterationa to the Premises shall not be permitted without the prior written conaent of Leaaor, which consent shall not be unreasonably withheld. Excepting only furniture, furnishings (other than draperies) and telephone facilities, all Iluch additiona to the Premises shall become the sole property of Leaaor. Lessor hereby express ly consents to Lessee's conatruct ion of such removable partitions and walls as Lessee may deaire to divide the premisee into such areas as Lesaee's business may require. Upon the termination of this Subleaae. said partitiona may be removed, at the option of the Leaaor. If the Lessor directs the removal of the aaid partitions, the removal shall be at the sole cost of Lessee and the Premises ahall be returned, by Lesoee, to their condition at the date thereof, Lessor will make the neceasary init.ial alternations as requested by Lessee and set fOl'th on floor plan labeled Exhibit A attached hereto. 6. The Lessee covenants and agrees that it will bear, pay and diacharge, when and aa the same become due and payable, all 5 judgement" and lawful claims for damages or otherwise against the Lessor aris ing f rom the Lessee I s use or occupancy of said leased Premises, and will assume the burden and expense of defending all Buch suits, whether brought before or after the expiration of this Agreement of sublease and will protect, indemnify and save harmless the said Lessor, its agents, servants, employees and the public at large by reason of or on account of the use or misuse of the said Premises hereby leased, or any part thereof, due to the negligence of the Lessee or of its agente, servants or employees, or otherwise, and, in thie regard, shall carry appropriate liability coverage on the premiees, satisfactory in form, amounts and company to Lessor, and naming, at Lessor I s request, Lessor as an additional insured. 9, It hereby is covenanted and agreed that the Lessor, through its authorized agents, shall at all reasonable hours and times, upon reasonable to the Lessee, have the right to enter upon the demised Premises to examine the same and to demand that Lessee promptly perform such repairs to the demised premiges as may be reasonable to maintain it proper ly, taking into consideration the length of the remaining term of this Sublease, and to post on the demised Premises the usual notice FOR RENT, in anticipation of the termination of this Agreement of Sublease for a period of ninety (90) days prior thereto. 6 10. The Lessor shall have the right of distraint on property of Lessee, under the terms and conditions a8 provided in "The Landlord and Tenant Act of 1951," approved April 6, 1951, P.L. 69, as amended and supplemented, of the Commonwea 1 th of Pennsylvania. 11, The ri<;l,hts and t'emedies granted to the Lessor in thJ.s Agreement of Sublease may be exercised concurrently, successively or in the alternate, at its discretion. 12. No waiver of a breach of any of the covenants of this Agreement of Sublease shall be construed to be a waiver of any succeeding breach of the same or any other covenant, 13. In the event that the whole of the leased Premises be taken for any public or quasi-public use, under any statute, or by right of eminent domain', or should such portion of said Premises, or right of access thereto be taken so as to render said Premises untenantable for use as the Premises may be being used at the time of condemnation, or to require substantial structural changes for such continued use and, when such possession shall have been taken thereunder of the Premises by the condemning authority, the term of the Sublease shall be ended, and the rent shall be apportioned and 7 paid to the time of such termination, unless the Lessee shall elect to continue occupancy undel' P.uilgraph 15. LeSSOl' and Lessee shall COOpel"ate to maximi?e l'ecovery from the cOlldemner, and any award, division by a 130ard of View, jury or court shall not be final, but shall be finally made a majol'"ity vote of three qualifi'Jd appl.'aisal experts, one chosen by Lessor, one by Lessee and the third by the two or chosen (or, in the abaence of agreement, by the President Judge of the Court of Common Pleas of Dauphin County) after the award, compensation or damages shall have been determined. Lessor shall pay its expert, Leseee its expert and Lessor and Leseee shall divide equally the cost of the third expert. 14. Should only a portion of such Premises, or the right of access thereto, be taken, for any public or quasi-public use, under any statute, or by right of eminent domain so that the balance of the Premises is effectively tenantable for its use or uses at the time of condemnation, this Sublease, if Lessee so elects, shall continue or, if Lessee does not so elect, this Sublease shall terminate and the rent shall be apportioned and paid to the time of such termination. If this Sublease continues, however, the rents payable hereunder shall be reduced rental to be agreed upon. If Lessor and Lessee do not agree upon a reduced rental, the rental shall be determined by three qualified appraisal experts as set forth above in Paragraph 14. Recovery from the condemner, and the division thereof, shall likewise be as set forth above in Paragraph 14. 8 15. This Agreement of sublease Hhall be Rubject and subordinate at all times to the lien of exiRting mortgages and of mortgages which hereafter may be a lien on the leased premisee. Although no instrument or act on the part of the ~essee shall be necessary to effectuate such subordination, t.he Lessee will, neverthe less, execute and de I i Vel' such further instrumente subordinating this sublease to the lien of any such mortgages as may be desirec by the mortgagee. The Lessee hereby appoints the Lessor its attorney-in-fact, irrevocably, to execute and deliver any such instrument for the Lessee. The Lessee shall be entitled in connection with any subordination under this paragraph to appropriate non- disturbance assurancoe, conditioned upon the I,essee' s full compliance hereunder. 16. Lessee may not sublease all or any part of the demised premiees in any way without Le~sor's prior specific written consent which will not be unreasonably withheld. 17. The provisions of this Agreement of sublease shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. Thh Agreement of Sublease shall be automatically transferred to any purchaser of the property known as 1200 Camp Hill By-Pass, Camp Hill, County of Cumberland, Commonwealth of Pennsylvania, whether by private or public sale, and shall not be terminated by reason of such transfer of ownership. 9 16. Lessor wi 11 provide lobby directory ilnd suite entrance signage in accordance with bUilding standards at Lessor's expense. 19. Any noticel!l hereunder sha 11 be given to Lessor, Consumers Life InsUrance Company, Attention I L.A. Deluge, Investment Director, at 1200 Camp Hill By-Pass, P.O. Box 26, Camp Hill, Pennsylvania, 17001-0026, and to Lessee, MATT Corporation, Attnl Charles R. Davis, MATT Corporation. The partiee hereto may , from time to time. designate such other parties and addresses as they may deem appropriate for notice purposes. IN WITNESS ImEREOI?, the parties hereto have set their hands and seals the day and year first above written. WITNESS: CONSUMERS LIFE INSURANCE COMPANY By ~~IJJ2l,~~ J~es C. Robertson, President "Lessor" WITNESS: MATT CORPORATION .9~~ ~~() By: Charles R. Davis, President ULesseell 10 , ;1 1/ , ~ea~E! . . E, = ^ Member of Ihe Cunsumers I'lnundill (ir,;up I'eler J, Kramer G.n.ral Couns.1 ond &CIVIOry Consumers Financial Corporation October 1,1997 HAND DELIVERED Mr. Charles Davis Mutt Corporation 1200 Camp Hill By,Pll8s Camp Hill, PA 17011 RE: Past Due Rent-Leucd Premises ut 1200 Camp Hill By-Pass Dear Charlie: Despite repeated requests for payment l\I1d IlSSUrlIIlces from you guaranteeing payment by a sper,ific date of the past due rent owed by Matt Corporation to Consumers Life Insurance Compl\l1Y ("Consumers") Wider its lease with Co~umCfS, no payment has been received as of this date. As you know, Consumel's has been'more than accommodating in attempting to work with you to resolve tlUs matter l\I1d has been most lenient in granting you continued extensions of time, This can no longer continue and the time has now come for all past due rent to be paid in full with a certilied check in the amount ot'$36,307.13 as detailed in the memorandum previously given to you by Bill Walsh, Should tlUs payment not be received by 4 P.M. Monday, Octobel' 6, 1997, Consumers will initiate the necessary action to evict you from the premises and collect all amounts due at thaltime, P1K:w EXHIBIT e~\ ~L.I'''TI.INTt''NAnON''L 1200 Camp Hili By-Pass. Po. Box 26. Camp Hill. Pennsylwnla 17001-0026 Telephone: (717) 761-4230 ~ '''''i'l7-~~ Rlchnrd J. Plorc. Court Admlnl51mlor OFFICE OF THE COURT ADMINISTRATOR CUMBERLAND COUNTY COUIlT OF COMMON PLEAS I CClIHlhlll'61l SqIJIlIO . Corllalo, I'A 11013 I'hono Taryn N. Dixon (717) ~40.5200 Asslalnnl Court Adll1lnlalrnlor (717) 507-0371 (717) 532.7286 1717) 240.5452 FAX MEMOI~ANI)UM TO: The Ilonoruble Judge Edgnr D. Bllyley Taryn N. Dixon, Assistant Court Administrator" ,>:;"'r)-; (,:.51--.1 January 13, 1999 FROM: DATE: INRE: 6683 Civil 1997 CONSUMERS LIFE INSURANCE COMJlANY vs. MATT CORJlORA110N The above case is assigncd to you for II non-jury trilll. Plcllsc provide me with copies of your schcduling ordcrs and final disposition dnte so I can monitor the ensc for statistical purposes. Attachmcnt H ,I , " t5: 0) r.: ~ (', , , ~1 , ~~ 1.( ! ~ ,~ (:' ~I ! rl , , i ~" ~-' ; -to, /-:-, '~ ' l-_'.. [G/ "~I ~ ~<' '. II!I 1( ,I{.', ,t' " oll~ 0:'1 -. :'.1. - ) ':i Z~ h! f'~ c; i! l,!r., u 0 ..,. ~!ZO:g o~ ~~ '~ ~ ~ i ~ 'Q., " . " . . , . CONSUMERS LIFE INSURANCE COMPANY, II DclllwlIrc Corporlltloll, : IN TIlE COURT OF COMMON PLEAS or t CUMBERLANDCOllNTY PENNSYLVANIA PllIllltllT vs. No. 97-66ID MATI' CORPORATION, II PCllllsylvlIlll1I C<,lr(lOl'Ulloll, Dcfclldullt : Civil Act 1011 - Ejccllnellt ANSWER. NEW MA1"rER AND COllNTERCLAIM Dcfclldlllll MATT Corpol'Utlon, by Its undcrslgned ultorlleys, IIllswcrs IInd I'lIlscs neIV nH\ltcr to thc COll1plllilltln this IIction und asserts a countcrclaim, liS follows: 1. Admits upon information and bclicf. 2. Admits only that MATI' Corporation ("MATT") is a PcnnsylvlInia buslncss corporation. but denies that its officc address is us alleged. MATT's principal officc is 10ClllCd at20l6 Yulc Avcnue, Cump Hill, Pcnnsylvllnill17011. 3. Aftcr rcasonablc invcstigation, MA11' is without knowlcdgc 01' infol'lllation sufficicntto form a bclicf as to thc truth of thc allcgations of paragraph 3 of thc complaint, which are accordingly denied. 4. Stutes u conclusion of law to which no response is required. By way of rcsponsc, howevcr, admits that Exhibit A to thc complaint Is a truc and corrcct copy of a docull1cnt cntitlcd Agrccmcnt of Sublcasc cffcctivc Januury, 29, 1993. 5. Stutcs a conclusion of law to which no rcsponse is rcquired. By furthcr rcsponsc. howcvcr, paragraph 8, bclow, is inco~poratcd hcrc by refcrencc. 6. Stutes II conclusion of law to which no responsc is rcquired. By furthcr rcsponsc. however, paragraph 8. bclow. is incorporatcd hcre by refercncc. 7. SllIlc~ n conclusloll of law 10 which 110 rcsponsc Is rcqulrcd. By furthcr rC~(lOIl~e, however, [1orngmph ll. helow, i.llllcor(lo/'lllcd herc hy refcrcacc. ll. Admils ollly Ihm thc parlles agrecd 10 reduce auy monthly relllto $1 ,3114.25 In conslderalloll of MATr's la/'/llug hack a ponloa of Ihe leased prcmISt:s: denies Ihal this ngrcemenl wus e,Tccllve JlIIlullry 1, 1996, alld nvcrs 111I1IIhls agrecmcnt was e'Tectlve April I, 1995. By way of furthcr rcsponsc, avers thai MATI' wus ulall times rcady. willing and ahle to erect a dcmlslag wall, hUI Consumers fallcd and refuscd 10 provldc direcllon for the locallon of Ihe wall desplle MA'I"I"s rcpcated requcsls. 9. Admits. 10. SIUles 1I conclusion of law to which no response is rellulred. II. Stales 1I conclusion of law 10 which no response is required. By further response, howcver, purugruph 8, above, Is incorpo/'llled here by reference. COUNT [ - EJECTMENT 12. MA'IT Incorporules parugruphs I-II, ubove, by reference. 13. StUlcs 1I conclusion of luw to which no response is requlrcd. 14. Slatcs a conclusion of law to which no response is required. By way of further response, however, Consumers Is in (lossessionllf the leased premises. 15. Statcs a conclusion of law 10 which no response Is required. By further response, however, parugruph 8, above, is lacorporaled here by reference. WHEREFORE, MA'lT asks Ihat Count I of the complaint be dismissed, and thm judgmenl be entered in lis favor, with cosls nad such other relief as the COllrt deems appropl'llItc. -2- COUNT II -DAMAGES 16. MATT incorpol'lllcs parngraphs 1-15, ahovc, by rcfcrcncc. 17. Statcs II conclusion of law to which no rcsponsc is rCllulrcd. I tl. Stutcs a conclusion of law to which no rCiiponsc Is rcqulrcd. By WIlY of further rcsponsc, howevcr, Consumcrs is In posscsslon of thc ICllscd prcmiscs. 19. Statcs II conclusion of law to which no rcsponsc Is rcquircd. By furthcr rcsponsc, howcvcr, pllrugruph tl, abovc, Is Incorporulcd hcrc by rcfcrcncc. WHEREFORE, MATT asks that Count II of thc complaint bc dlsmisscd, and that judgmcnt bc cntcrcd in Its favor, with COSIS and such othcr rcllef as thc Court dccms llppropriatc. NEW MArI'ER 20. Thc complaint, in wholc or in part. fails to stalc a claim upon which rcllef can bc gl'llntcd. 21. Thc plaintiff's claims arc barrcd, in wholc 01' in part, by thc doctrincs of lachcs, waivcr, and/or cstoppcl. 22. MA'rI' has vacatcd thc prcmlscs at 1200 Camp Hill By-Pass, Camp Hill, Pcnnsylvania and, accordingly, Count I cjcctmcnt is moot. 23. On rcpcalcd occasions, MATT askcd for arcconciliation of its rcntal account with crcdits duc for its work as agcnt of Consumcrs. but was ncvcr providcd with thc rcqucstcd informlltion. 24. On rcpcatcd occasions, MATT askcd Consumcrs to cstablish a location for thc dcmising wall, pursuant to thcir agrccmcnt, but was ncvcr providcd with that infonnation. -3. 25. Following the IIgreement referred to In Jllll'Ugruph II, uhove, which Is Incorpol'Uted here hy reference, MATI' Illude, und Consolllers uccepled, JluYlllenls of relit utthe ugreed upon nile of $1 ,3114.25. WHEREFORE, MATI' usks thut Counts tund Hof the cOIllJllulnt he dismissed, und thut judglllent he entered In lis fuvor, with costs und such other relicI' us the Court deems upproprlute. COUNTERCLAIM MATT usserlS the following counterclulmugulnst Consulllers: 26. In or uhout Februury, 1994, Consumers lllld MATI' ugreed that the lulieI' would uet us Consumer's ugenl for the renovlllion of space In the building at 1200 CUIllJl Hill By- Pass, Calllp Hill, Pennsylvllnla. Pursuant to that agreement, MATI' retained 6M Construction Co. to perforlllthe work. 27. Renovation work was performed pursuant to the aforesaid agreement and was accepted by Consumers. 28. In its cupaclty as agcnt, MATI' advanced funds on behalf of Consumers in the amount of $3,687.00 for the work. 29. Despite repeated requests by MATT for reimbursement in the amount of $3,687.00, ConSllmers hus fuiled und rel"tllled 10 muke thut puymcnt. -4- ',11. 1111. 'lll.l' .,J " ,I' iI',-1 " 'f i, "Ii' , , , , " ,1 I' " " ,1 " I' ."" ,I , I " " , 'f , , , ,1, , , ,.. '1, '!I ;, , " , ,I , , " I , .!i. 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"I"',,, exhibit C H," "'"'''' (1') PRAECIPE l'OR L,!B'l'ING CABE f'OR 'l'RIAL ,//'1'1 I) l' i"j'JIP (Must be typewritten and suanitted in dupl kate) 'l'O 'rilE PlUl'1I0l'PI'ARY OF CUMBER1J\ND COUN1'Y Please list the following case, (Check onc) for. JURY trial at the next tem of civil court. , . . ~ " x for trial without a jury. ----------------------------------------- Cl\.PTION or CASE (entire caption nust be stated in full) (check one) CONSUMERS LU'E INSURANCE COMPANY, a Delaware corporation, Civil Action - Law Appeal from Arbi tration (X) Eiecl:Jrent/DarnaqeS (other) (Plaintiff) vs. MA'l'l' CORPORATION, a Pennsylvania corporation. The trial list will be called on and rebruar~6, 1999 Trials commence on March 15, 1999 (Defendant) Pretrials will be held on February 24, 1999 (Briefs are due 5 days before pretrials. ) VS, (The party listing this case for trial shall provide forthwith a copy of the praecipe to all counsel, pursuant to local r<ule 214.1.) No, 6683 civil Ac:tion-Eiectment 19 97 Indicate the attomey who will try case for the party who files this praecipe. John R. Kachur. F.squire, Eckert Seamans Cherin & Mellott, LLC Indicate trial counsel for other. parties if known. 'll1aras B. Schmidt, III, Esquire, Pepper Hamilton U.P This case is ready for trial. ~ Signed I Ij^!' ,f' :;;;;;:f"-- Print Name. John R, Kachur Date. 01-07-99 Attorney fon Plaintiff