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HomeMy WebLinkAbout07-4722REALER &ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: ~ietrzak cr,Reag_erAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney LD. No. 67987 Email: Twilliams(a~,Rea~erAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. :CIVIL ACTION ~j-- r I CALABRESE & SONS, INC. and, NO. C~? ~~~~ ~~v ~' v ~~1nr~ l JOSEPH CALABRESE, Defendants :CONFESSION OF JUDGMENT PRAECIPE FOR ENTRY OF JUDGMENT BY CONFESSION TO THE PROTHONOTARY: Kindly enter judgment by confession in the above-captioned matter against the Defendants, both jointly and severally, and assess damages in the amount of $74,955.14, plus interest from August 6, 2007, as follows: Principal $67,839.61 Interest $ 301.43 Collection fees ,~~814.10 Total: $74,955.14 Respectfully submitted, REALER &ADLER, P.C. Date: August 8, 2007 Jo H. Pietrzak, Es uire Attorney for Defendants ~ ~ c" ~ ., _ _ ~ .,.~. -r-, ~. - , ~ fi` ~ `L~ ~~~ ~ ~~ ~ ` 4 . T 4 ~ _ _ ~~ `{ sc.. ~ ~~ J i~..i •• REALER &ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: ~ietrzak(a~ReagerAdlerPC com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a,ReagerAdlerPC com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v• :CIVIL ACTION CALABRESE & SONS, INC. and, NO. O?' - ~7~a, !v 1, ~.~ JOSEPH CALABRESE, Defendants :CONFESSION OF JUDGMENT CONFESSION OF JUDGMENT Pursuant to the authority in the Warrant of Attorney, the original or a copy of which is attached to the Complaint filed in this action, I appear for the Defendants and confess judgment in favor of the Plaintiff and against Defendants as follows: Principal $67,839.61 Interest $ 301.43 Collection fees 6 814.10 Total: $74,955.14 Respectfully submitted, REALER &ADLER, P.C. Date: August 6, 2007 J H. Pietrzak, Esq ire Attorney for Defendants rv ~ ~,~~; ~ t-=- .~_ ~ 't~'rTa ' t -~s ~~ -`~ y '' ~rtii~ ~ r~~.~ ~:~i .~ t'V ~ -+..9 - G REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: Jpietrzak ,.ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(cc~Rea~erAdlerPC.com. 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. :CIVIL ACTION CALABRESE & SONS, INC. and, NO. ~'~' -. ,C.~ ~~, ~, ~ v i ~~ JOSEPH CALABRESE, . Defendants :CONFESSION OF JUDGMENT COMPLAINT IN CONFESSION OF JUDGMENT 1. Plaintiff, Brandy Investors, LP (hereinafter "Brandy") is a Pennsylvania limited partnership with a mailing address of c/o RSR Realtors, 3 Lemoyne Drive, Suite 100, Lemoyne, Pennsylvania 17043. 2. Defendant Calabrese & Sons, Inc. (hereinafter "C&S") is a Pennsylvania corporation, with a mailing address of 406 Brandy Lane, Mechanicsburg, Pennsylvania, 17055. 3. Defendant Joseph Calabrese is an adult individual, with an address of 25 Devonshire Square, Mechanicsburg, PA 17055. 4. This is an action to confess judgment for damages arising out of C&S's default of a commercial lease entered into between Brandy and C&S on June 9, 2006. 5. Judgment is not being entered by confession of judgment against a natural person in connection with a consumer credit transaction. 6. On June 9, 2006, Brandy and C&S entered into a commercial lease agreement (hereinafter the "Lease") under which Brandy demised and let certain office and warehouse space located at 406 Brandy Lane, Mechanicsburg, Pennsylvania 17055 to C&S for a period often (10) years. 7. Joseph Calabrese (hereinafter "Calabrese") signed executed a Personal Guaranty of Lease, as an individual guarantor, obligating himself individually to all of the duties and obligations of C&S under the Lease. 8. C&S has defaulted under the terms of the Lease by failing to pay the rent due and owing for July 2007, in the amount of $23,925.21. The amount in arrears for July 2007 rent, including the 5 % late penalty provided for in the Lease of $1,196.26, and 1 % interest per month of $251.21 is $25,345.68. 9. C&S has further defaulted under the terms of the Lease by failing to pay the rent due and owing for August 2007, in the amount of $23,925.21. The amount in arrears for August 2007 rent, including the 5% late penalty provided for in the lease, and 1% interest from August 1, 2007 of $50.22, is $25,171.69. 10. C&S has further defaulted under the terms of the Lease by failing to pay taxes due and owing in the amount of $10,000 and current insurance premiums due and owing in the amount of $7,596.67, plus $2.59 per day beyond August 6, 2007. 1 1. A true and correct copy of the Lease under which Plaintiff has confessed judgment is attached hereto and incorporated herein, as Exhibit "A". 12. The Lease under which judgment is being confessed has not been assigned. 13. The principal balance due under the Lease is $67,839.61 plus interest at the rate of 1 % per month, in the current amount of $301.43, together with collection and attorney's fees of 10% as authorized by the Lease, in the amount of $6,814.10, for a total of $74,955.14. 14. Judgment has not been entered against C&S or Calabrese in any jurisdiction for the unpaid sum of $74,955.14 of the debt here demanded. 15. Judgment is demanded as authorized by the Warrant of Attorney contained in the Lease attached as Exhibit "A". 16. The Warrant appearing in the attached Lease is less than twenty (20) years old. WHEREFORE, Plaintiff, Brandy Investors, LP, demands judgment against Defendants, Calabrese & Sons, Inc. and Joseph Calabrese, in the sum of $74,955.14, plus interest, taxes and insurance premiums, which continue to accrue, as authorized by the Warrant appearing in the attached Lease, together with interest from the date of judgment and costs. Respectfully submitted, REAGER & ADLER, P.C. Date: August 8, 2007 J~Iin H. Pietrzak, Esq~re Attorney I.D. No. 79538 Thomas O. Williams, Esquire Attorney I.D. No. 67987 2331 Market Street Camp Hill, PA 17011-464 Telephone: (717) 763-1383 Attorneys for Plaintiff, Brandy Investors, LP • ' , shcldlbtrsrlbrandy~calabrese.lease June 9, 2006 COMMERCIAL LEASE AGREEMENT THIS LEASE AGREEMENT, made as of the 9th day of June, 2006, by and between BRANDY INVESTORS, L.P., a Pennsylvania limited partnership, with a mailing address of c/o RSR Realtors, 3 Lemoyne I3rive, Suite 100, Lemoyne, PA 17043, hereinafter referred to as "Landlord", and CALABRESE & SONS, INC., a Pennsylvania business corporation, with a mailing address of P.O. Box 1667, Mechanicsburg, PA 17055, hereinafter referred to as "Tenant". WHEREAS, Landlord desires to lease to Tenant the premises comprised of an office and warehouse located at 4U6 Brandy Lane, Borough of Mechanicsburg, Cumberland County, Pennsylvania (the "Building"), and the Tenant desires to lease the same upon the terms and conditions and for the good and valuable considerations described in this lease agreement, hereinafter sometimes referred to as the "Lease"; NOW THEREFORE, the parties hereto agree as follows: 1. LEASED PREMISES. Landlord leases, demises and lets to the Tenant, office and warehouse space identified as the Building, and hereinafter sometimes referred to as the "Premises", and Tenant hereby leases from Landlord the entire Premises known as 406 Brandy Lane, Mechanicsburg, Cumberland County, Pennsylvania 17055, consisting of an approximate 80,000 square foot Building, together with all easement rights and appurtenances applicable thereto. 2. TERM. The term of this Lease is for a period of ten (10) years, commencing on the 9th day of June, 2006 (the commencement date), being the date of the real estate settlement of the sale of the Premises from Tenant (Seller) to Landlord (Buyer), and ending at midnight on the 30th day of June, 2016. Landlord and Tenant acknowledge that Tenant is currently in possession of and occupies the Premises as of the commencement date. Provided this Lease is not in default, Tenant is granted an option to renew this Lease as follows: (1) at the option of Tenant, the term of the Lease may be extended for two (2) renewal periods of five (5) years each by written notice to the Landlord at least 180 days prior to the expiration of the term or any renewal term thereof, as the case may be; (2) upon any valid exercise of any such option to renew, terms of the Lease shall remain in full force and effect except that the minimum annual rent for each renewal period shall be adjusted as set forth in Paragraph 3 below. 3. RENTAL. Tenant shall pay to Landlord a total rent of $280,100.00 during the first (1St) year. term of the Lease, payable in monthly installments of $23,341.67. In addition, Tenant shall pay such Additional Rent, as set forth herein. The monthly rental shall be payable in advance on the first day of each month beginning as of the commencement date set forth in Paragraph 2 above, at such address designated by Landlord in Paragraph she\diblrsr\brandy\calabrese.lease June 9, 2006 20 (entitled Notices) herein below, or such other places as the Land subject to the following: at the time of settlement on the sale of lord may designate, Tenant (Seller) to Landlord (Buyer), Tenant will provide Land the real estate from (3) months base rent in the amount of $70,025.00 to be held b .Land i~ a credit of three for the month of June 2006 will be prorated at settlement. Re 1 lord in escrow. Rent Tenant, shall thereafter commence in advance on the first gn ar rental payments by The rent as set forth above shall remain constant for the firsts 1 Sof the following month. ove ther, °n an annual basis rent shall increase by tvvo and )year °f the lease term. pnor lease year s rent as follows: one half percent (2.5%) Lease Year year 1: Annual Rent Monthl Rent Year 2: $280,100.00 $287 102 50 $23,341.67 Year 3: , . $294 280 06 $23,92.5.21 Year 4: , . $301 637 06 $24,523.34 Year 5:. , . $309 177 98 $25,136.42 Year 6: Year 7: , . $316,907.42 $25,764.83 $26,408.95 Year 8: ; $324,830.10 $332 950 85 $27,069.18 Year 9: ' ~ , . $341 274 62 $27,745.90 Year 1Q : , . $349 806 48 $28,439.55 , . $29,150.54 Any rental payment not received by the 5`h of the month shall b e su ° b~ ect to a 5 /o late fee The rent for the renewal t . erms set forth in Paragraph 2 above sha Tlrncrease by two and one-half percent (2.5%°) above the prior lease year's re re t t n , as the case maybe. . n or rio P enewal lease year's All amounts (other than Rental, which shall be payable as her the ~ Tenant to the Landlord hereunder shall be paid within f m set forth) owed by date that Landlord; renders statements of account therefoVe (5) days from the (including Rental) not paid when due shall accrue and bear ire and all amounts one percent 1 % ~ nterest at the rate of ( )per month (twelve percent (12%) annually) until aid. the essence in Tenanet's payment of Rental and Tenant's erf p Time is of every term, covenant and condition of this Lease incumbentan T naance of each and nt. 4• REAL ESTATE TAXES, A• Real Estate Taxes. As Additional Rent, Tenant a ees levied. upon the subject pro e ~ tO pay all real estate taxes P rty of any nature including future assessments. Payments by Tenant of all real estate taxes shall commence simul the rentals hereunder. taneously with 2 ' ~ . sficldibtrsrlbrandy~calabrese.lease June 9, 2006 B. Personal Property Taxes. Tenant. agrees to pay any and all taxes levied upon the personal property, including trade fixtures and inventory, kept on the premises, as well as all taxes levied against the land and the building and improvements situated thereon or on the rents derived by Landlord therefrom during the term of the Lease after~presentation to Tenant by Landlord of statements from the taxing jurisdiction m wluch said property is located. Landlord may, ,, however, direct the taxing authorities to send the statements directly to the :.Tenant. Landlord further agrees that Tenant, in the name of Landlord, but ~.t Tenant's sole expense, may protest any assessment before any taxing authority or board or maintain any necessary legal action in reference to said assessment or for the recovery of any taxes paid thereon. Nothing herein contained shall require Tenant to pay any income or excess profit taxes assessed against Landlord or any corporation, capital stock or franchise tax imposed upon Landlord. C. Method of Payment. Landlord shall give written notice advising Tenant of the amount of real estate taxes, together with a copy of the tax bill, and Tenant shall pay such amount to Landlord within the first thirty (30) days of the face amount period.. Landlord and Tenant acknowledge that at the real estate closing Landlord (Buffer) will not reimburse Tenant (Seller) for the current year real county/township and school real estate taxes that have been paid by Tenant, and Tenant w$ll be considered paid until the next calendar or fiscal year tax billing periody as applicable. If this. Lease shall terminate during a tax year, Tenant shall ply to Landlord a pro rata portion of the amount that would have been due for the full tax year based on the number of days of said tax year expired on the date of termination. 5. UTILITIES AND SERVICES. Tenant shall contxact in its own name for and promptly pay all charges for electricity, gas, water, sewer, telephone and any other utility used or consumed in the Premises to the concern furnishing the same. Landlord shall not be .liable in any way to Tenant for any failure or defect in or of any utility service furnished to the Premises by reason of any requirement, act or omission of the public utility company serving the Premises with electricity, water or other utility service, or because of necessary repairs or improvements. Tenant's use of electric energy in the Premises shall not at any time exceed the capacity of any of the electrical conductors and equipment in or otherwise serving the Premises. To insure that such capacity is not exceeded and to avert possible adverse effect upon the Building electric service, Tenant shall Ys~t, without Landlord's prior written consent in each instance (which shall not be unreaso~iably withheld) connect any additional fixtures, appliances or t. equipment (other than lamps, typewriters and similar small office machines) to the Building electric distribution systems or make any alteration or addition to the electric system of the Premises existing on the commencement date of this Lease. 3 ' ~ , stic\dibtrsrlbrandy\calabrese.lease June 9, 2006 6. MAINTENANCE OF LEASED PREMISES. A. Maintenance by Tenant. Tenant shall, at its sole cost, keep and maintain the interior Leased :Premises [together with exterior (i) windows,. including sashes, (ii) heating, ventilating and air .conditioning equipment and sewer and other lines serving the Leased Premises], including without limitation, the partitions, ceiling, interior portions of exterior walls, floor covering therein, and the fixtures, equipment, machinery, appliances and utility lines therein and appurtenances thereof [such as, but not limited to, lighting fixtures and lenses and such fixtures, equipment, machinery controls, appliances and utility- lines and appurtenances thereof, as are ~~used for, in connection with or which are a part of the electrical, plumbing, heating, air conditioning, ventilating„ or any other mechanical systems in or serving t~:e Leased Premises], in conformity with Landlord's hazard insurer, neat and clean end in good order, condition, maintenance and repair. Tenant shall also at its cost 'procure and maintain in the Leased premises all safety appliances required by Landlord's hazard insurer to be maintained therein. Tenant .shall be responsible for the cost of replacement of any and all plate; window and other glass (structural or otherwise) in, on or about the Leased Premises, which may be broken or destroyed. Before undertaking repairs to the Leased Premises (other than minor interior non-structural repairs), Tenant shall first obtain Landlord's approval of the plans and specifications therefore, which approval is not to be unreasonably withheld. Tenant shall contract with a heating and air conditioning contractor, approved by Landlord, who shall provide a complete service and maintenance contract to Tenant at least annually, the inspection of the HVAC equipment serving the Leased Premises, including a written report of the condition there of to be provided to Landlord and Tenant, the periodic oiling of the equipment where required, the tightening of belts, the filling of pitch pans and the sealing of .water leaks, among other things. The service and maintenance contract and itg related costs shall be the sole cost and expense of the Tenant. The existence of a service contract with a Landlord approved vendor shall not relieve Tenant of its ~`: obligations to maintain and repair such equipment as above provided. t i B. Roof Repair and Replacement. The current condition of the roof requires repair the cost of which has been provided for through the escrow of funds by Tenant (Seller) at the time of closing on the sale of the real estate to Landlord (Buyer). Landlord shall `make such required repairs and use said escrow funds. In addition, to the extent that the existing roof requires replacement during the term of this lease, or any renewal terms, Landlord's cost of the roof replacement shall be amortized over the remaining lease term, including any renewal terms, and Tenant's rent shall be increase by said amount. Landlord shall give Tenant thirty (30) days advance notice of any increase in rent. 4 sNcldibtrsrlbrandylcalabrese.lease June 9, 2006 C. Maintenance by Landlord. Subject to the obligations of Tenant under the provisions of B above, the foundations, roof (excluding interior ceilings) and ,. except as specifically provided in B above, and exterior portions of the exterior walls of the Lased Premises shall be maintained by Landlord at its expense ~ in good order, condition, maintenance and repair.. Landlord shall not be deemed to have breached its obligation to make the repairs.required of Landlord as set forth in this Section, or to be liable for any damages resulting therefrom, unless Landlord fails F to make the same within a reasonable period (taking into consideration tY~e type of repair involved) after receiving notice from Tenant of the need therefor. 7. SECURITY. The three (3) month base rent balance in the. amount of $70,025.00 set forth in Paragraph 3 above shall serve as Landlord's deposit the receipt of which is hereby acknowledged as security for the full and faithful performance by Tenant of each and every term, covenant, and condition of this Lease. In the event.that Tenant defaults in any of the terms, provisions, covenants, and conditions of this Lease, including but not limited to payment of :any rental or additional rental, Landlord may use, apply, or retain the whole or any part' of the security so deposited for the payment of any such sum in default, or for any other sum which Landlord may expend or be required to expend by reason of Tenant's deult, including any damages or deficiencies in the reletting of the premises, whether s~,ch damage or deficiency may occur before or after -some . repossession proceeding or other reentry by Landlord. In the even that Tenant shall fully and faithfully comply with all the terms and conditions of this Lease, the security or any balance thereof, shall be returned to Tenant after expiration of the lease term. The Tenant shall not be entitled to any interest on the aforesaid security. If the Landlord utilizes any of the security deposit;in curing a default on the part of Tenant, Tenant shall immediately pay Landlord the amount necessary to restore the security deposit to its original amount. 8. PERMITTED USES BY TENANT. Tenant represents, covenants and warrants that the Premises will be used lawfully for the following purposes: A machine shop operation 9. OTHER IMPOSITIONS. In addition to the Rental provided hereunder, Tenant agrees to pay each and all licenses and permit fees and all taxes and increase in taxes levied and assessed by any governmental body by virtue of any special leasehold improvements or by virtue of Tenant conducting its described use, business or operation on the Premises, the employment of agents, servants, or other third parties, the bringing, keeping or selling of personal property or.chattels of whatsoever nature from the Premises. The foregoing is intended to bind Tenant to pay, and promptly discharge, all taxes and/or levies, together with related interest and penalties, whether assessed by Federal, or State authority or any political subdivision thereof, directly or indirectly related to its business, improvements, functioning, employri`ent, assets, existence, sales entertainment or the like. Tenant specifically agrees to reimburse Landlord for any increase in ad valorem taxes resulting 5 .. • ' . si~cldib\rsrlbrandylcalabrese.lease June 9, 2006 . from use of fixtures or improvements by Tenant which Landlord becomes obligated to PaY• 10. ASSIGNMENT AND SUBLEASE. Tenant shall not make or permit any assignment (by operation of law or otherwise) of this Lease without the prior express written consent of Landlord.. Tenant shall make no sublease or mortgage of this Lease, in whole or in part, without the prior express written consent of Landlord. Tenant shall not permit the use or occupancy of the Premises, or any portion thereof, by anyone other than Tenant and shall not make an~ transfer of any nature whatsoever of its right under this Lease or of Tenant's interests sit forth in this Lease without. the prior written consent of Landlord first had and obtained,~~ Any such assignment or any such subletting, whether approve by Landlord or not, shall not relieve the Tenant of any liability for the total agreed rentals due hereunder nor from Tenant's obligation to perform all the covenants herein contained. Any written consent Qvhich may in any specific instance or circumstance be given by Landlord shall not imply or be deemed to be consent in any other instance or circumstance. 11. SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE. The parties acknowledge and agree that this Lease Agreement is under, subject, and subordinate to any and all mortgages and security interests that presently encumber the property or that in the future may encumber the property of which the leased premises is a part without the necessity of any further instrument or act on the part of the Tenant to effectuate such subordination. Tenant agrees, at the election of Landlord, to attorn to any holder of any mortgage to which this lease is subordinate. Tenant shall execute and deliver upon demand such further .instrument or instruments confirming such subordination of this Lease to all underlying leases and to the lien of any such mortgage and/or other encumbrance as shall :be desired by any such mortgage or proposed mortgage or by any other person. Tenant ~fereby appoints Landlord the attorney-in-fact of Tenant irrevocably to execute and delivery any such instrument or instruments for and in the name of Tenant. If Landlord shall mortgage the real property of which the leased premises is a part, Landlord shall obtain from the lienholder aNon-Disturbance Agreement for the benefit of Tenant. Any Non-Disturbance Agreement is subject to the requirement that Tenant shall not have been in default under the terms, covenants and conditions of this lease or any time during the lease term. 12. COMPLIANCE WITH LAWS AND INDEMNIFICATION. Tenant agrees to strictly comply with all pertinent laws, ordinances, statutes and regulations whatsoever, of any governmental body or subdivision, incident to its occupancy of the Premises and its use thereof. Tenant further covenants and agrees to indemnify and hold Landlord harmless from any loss, cost or expense whatsoever, directly or indirectly resulting or occasioned to, or imposed. upon, Landlord (1) by injury to or destruction of life or property resulting from the use and occupancy by Tenant (including, but not limited to any such injury or destruction caused, in whole or in part, by its agents, servants, employees, independent 6 r ' ~ . sFic~diblrsrlbrandy\calabrese.lease June 9, 2006 contractors, invitees o~ licensees), or (2) by damage to or destruction of the Building structure, or any part thereof, or of any abutting real property caused by or attributable to the negligent act or arts or omission or omissions to act of Tenant (including but .not limited to, any such damage or destruction caused, in whole or in part, by its agents, servants, employees, contractors, invitees, or~licensees) or caused by or attributable to the Tenant's failure to perform its obligations under this lease. As used in this Paragraph 12 the term "Landlord" `'.shall be deemed to include any agent, employee or servant of Landlord. 13. QUIET ENJOYMENT UNTENANTABILITY. Landlord hereby warrants that Tenant upon payment of the rent and performing the provisions of this Lease on its part- to be paid and performed shall have .peaceful and quiet possession of the Premises against all parties claiming adversely thereto by or under Landlord. If, during the term of this Lease, the Building or building equipment or Premises be destroyed by fire or any other cause whatsoever, or .partially destroyed so as to render the Premises wholly unfit for occupancy, and Landlord shall conclude that they cannot be repaired for occupancy within 120 days from the happening of the loss of damage, then this Lease shall, at Landlord's option, i~rnediately terminate in which case Tenant shall surrender the Premises and all intexest therein and Tenant shall pay rent only to the time of such surrender. In case of total or partial damage or destruction to the Premises, Landlord may re-enter and repossess. the same or any part thereof for the purpose of removing or repairing the loss or damage and shall proceed with reasonable dispatch to the repair of same unless, under the foregoing clause of this paragraph, the Lease shall have terminated. The rent wring the period of such repairs shall be wholly abated if all of the Premises have been thus repossessed by Landlord for the purpose of repair for the period that Tenant has been thus dispossessed; and if only a portion of the Premises are thus repossessed, the rent shall be abated for the period of such dispossession ratably, based on the portion of the Premises thus repossessed. Should the Building or Premises be destroyed or damaged by fire or other cause, due to the fault or neglect of'Tenant or its agents, servants, employees, independent contractors, invitees, or licenses, the Landlord may repair such damage without prejudice to any rights of subrogation of Landlord's insurer and there shall be no apportionment or abatement of rent. 14. SIGNS. Tenant shall ,not erect or install any sign or other type display whatsoever, either upon the exterior of t~.~e Building, upon or in any window, or door therein located, or the Premises, without theprior express written consent of Landlord. Any free-standing sign to be situate on the Premises shall be approved in writing by Landlord and comply with all applicable Township signage requirements. It is the responsibility of the Tenant to investigate all appropriate governmental authorities governing sign size and location and to optain approval.. ; 7 .sheldlbtrsr\brandylcalabrese.tease June 9, 2006 15. TENANT'S CARE OF PREMISES. Tenant shall not make alterations in, or additions or improvements to the Premises without the prior express written consent of Landlord. Landlord's refusal to grant such consent shall be inclusive. In addition: A. .Tenant shall commit no waste with respect to the Premises and shall take good care of and keep in good repair the Premises and .fixtures therein and, at the expiration or e~.rlier termination or cancellation of this Lease, shall surrender the Premises and Ffxtures therein in the same condition as when initially received by Tenant, subject only to reasonable wear-and tear resulting from normal use, and shall surrender:all keys for the Premises to Landlord at the place then fixed for-the payment of rent and shall remove all Tenant's property before surrendering the Premises. All '~njuries to the Building or fixtures caused by moving the property of Tenant in Qr out of the Premises, and any and all breakage or other injury whatsoever done by Tenant, its agents, servants, employees, independent contractors, licenses, invitees, or visitors, as well as any damage done by water, steam, electricity, fire or other substance due to the neglect of the aforesaid parties, may be repaired by Landlord, at the expense of Tenant, and shall become due and payable upon delivery of a statement of such charges by Landlord to Tenant or mailing the same postage prepaid, to Tenant at his last known address. B. All alterations, additions or improvements upon or affixed to or in the Premises (including, but not limited to carpets, drapes and anything bolted, nailed, plumbed or otherwise secured in a manner customarily deemed to be permanent) shall be deemed to be :. a fixture inuring to the Building, and. shall not be subject to attachment of a mechanic's, materialman's or similar lien, and shall in any event be and become. the property of Landlord and remain upon the Premises and be surrendered at ~he end of this Lease, Business machines and such equipment are excluded from plus section. ~: C. Tenant shall ndt use or permit to be brought into the Premises or the Building any flammable or explosive material or other articles deemed hazardous to persons or property. Teri~ant shall not occupy the Premises in any manner which shall invalidate or tie in conflict with fire or other insurance policies covering the Building or its operation or the Premises, or increase the rate of fire or other insurance in the Building or its operation or the Premises, over that in effect prior to this Lease. If, by any reason of failure of Tenant to comply with provisions of this paragraph, any insurance premium shall be at the beginning of this Lease or any time thereafter be higher than it otherwise would be, the Tenant shall reimburse the Landlord as additional rent hereunder for that part of all insurance premiums thereafter paid by Landlord, which shall have been charged because of such failure by Tenant and shall make such reimbursement upon the first day of the month following such payment by Landlord. 8 ' ~ • stic\dlb~rsrlbrandylcalabrese.lease June S, 2006- ;, D. Tenant shall nol permit any obnoxious odors, chemicals or other substances to be produced, manufactured or stored in the demised premises. A breach of the provision shall be deemed a material breach of this Lease entitling the Landlord to exercise. any remedies available to it hereunder or at law. :,: 16. WAIVER OF CLAIMS. To the extent permitted by law, the Landlord shall not be liable for and the Tenant releases the Landlord and Landlord's agents, contractors and servants from, and waives all claims for damage to person or property sustained by the Tenant or any occupant of the Building or Premises resulting from the use and condition of the Premises or any;part or any equipment or appurtenance becoming out of repair, or resulting from any accident in or about the Premises, or resulting directly or indirectly from any act or neglect of any tenant or occupant of the Premises or of any other person, including Landlord, its agents or employees. This section shall apply especially, but not exclusively, to the flooding of basement or other subsurface areas, and to damage caused by refrigerators, sprinkling devices, air-conditioning apparatus, water, snow, frost, steam, excessive heat or colds falling plaster, broken glass, sewage, gas, odors or noise, or the bursting or leaking of'~pipes or plumbing fixtures, and shall apply equally whether any such damage results from the act or neglect of the Landlord or of any other persons, and whether such damage be caused or result from any thing or circumstance above mentioned or referred ~~o, or any other thing or circumstance whether of a like nature or of a wholly different nature. If any such damage, whether to the Premises or the Building, result from any act or ;neglect of the Tenant, the Landlord may, at the Landlord's option, repair such damage and the Tenant shall, upon demand by the Landlord, reimburse the Landlord forthwith for the total cost of such repairs. Tenant covenants to indemnify and save Landlord harmless against and from any and, all loss, cost, damage, claim, liability or expense including, but not limited to,.reasonable attorney's fees, arising out of or resulting from any injury or claim of injury of any nature of sort whatsoever to any person or property suffered or received in or about the Premises at any time during the term hereof, or arising out of any failure of Tenant in any respect to comply with any of the requirements or provisions of this Lease. Tenant hereby releases Landlord and Landlord's officers, agents, employees and servants, from any and all claims or demands for damages, loss, expense or injury to the Premises, or to the furnishings and fixtures and equipment, or inventory or other property of Tenant in, about or upon the Premises, as the case may be, which n~`ay be caused by or result from perils, events or happenings which are the subject of insurance carried by the Tenant and in force at the time of any such loss. All property of any Find belonging to the Tenant or any other person that is in the Building or the Premises shall be there at the sole risk of the Tenant or other person only, and the Landlord shall not be liable for damage thereto or theft or misappropriation thereof. Landlord or its agents, servants or employees, shall not be liable .for any injury, loss or damage to any;persons or property on or about the premises from any other cause of whatsoever nature;: unless the same is directly caused by gross negligence of the Landlord and there i~ no fault or negligence of the Tenant, and Tenant shall save Landlord. harmless and indemnified against such injury, loss or damage, or liability or claim thereof arising from any act, omission or negligence of Tenant. 9 • sheldlblrsrlbrandylcalabrese.lease June 9, 2008 17. TENANT'S INSURANCE. Tenant shall, during the entire term hereof, at its sole cost and expense, obtain, maintain -and keep in full force and effect the following policies of insurance: ~,:. A. All risk insurance including fire insurance (with extended coverage and vandalism. and malicious z~ischief coverage), water damage, sprinkler leakage and plate glass insurance, on t~e standard forms, insuring all of Tenant's property. in the Premises, and all betterments, additions, repairs, improvements and alterations made to the Premises by Tenant, and all plate glass windows, plate glass doors and other plate glass in the Premises, in an amount equal to 100% of the replacement cost thereof. } B. A combination of comprehensive general liability insurance and excess (umbrella) coverage to include personal injury, bodily injury, broad-form property damage, operation's hazard, independent contractor's coverage,. blanket contractual liability (including insuring contractual liability under the indemnifications of Landlord by Tenant set forth in this Lease), premises operations liability and in limits approved by Landlord in writing which approval shall not be unreasonably withheld. Said policies shall name Landlord as an additional insured. C. Worker's compensation and employer's liability insurance in a form and amount required by law. D. Any, other form or forms of insurance standard to the industry as Landlord may reasonably require from time to time in form, in amounts and for insurance risks against which a~ prudent Tenant would protect itself. 1, All policies shill be taken out with insurers that are reasonably acceptable to the Landlord and which are. licensed to do business. in the Commonwealth of Pennsylvania arld certificates showing that such coverages to be in effect shall be furnished to Landlord upon request. In addition to Tenant, all policies shall also name Landlord and any other person, -firm or corporation designated by Landlord and in privity ~ with it, as an additional insured. Each insurer shall agree, by endorsement upon the certificate issued by it or by independent instrument issued to Landlord, that it will give ,Landlord thirty (30) days' written notice before the policy in question shall be altered or canceled. Tenant shall be entitled to provide the insurance coverage required hereby through the use of blanket insurance policies covering the Premises. Tenant agrees that certificates of insurance shall be delivered to Landlord as soon as practicable after the placing of the required insurance and that renewal certificate shall be delivered not less than ten (10) days prior to the expiration of such policies. E. Insurance on Buildings and Improvements. As additional rent, in each calendar year during the term, Tenant shall pay to Landlord, Landlord's total cost of 10 >. she\dlb\rsrlbrandylcalabrese.lease June 9, 2006 €:. insuring the Premises and improvements thereon, including public liability, (including "um'brella coverage"), workmen's compensation and hazard insurance (including rental value insurance, fire and extended coverage [with vandalism and malicious mischief endorsement]; boiler and machinery, and all-risk policies). Tenant's insurance payment shall be paid in monthly installments on the first day of each calendar month during the term in advance, in an amount reasonably estimated by Landlord. Within 90 days after the end of each calendar year during the term, Landlord shall furnish Tenant with a statement summarizing the actual insurance cost for such calendar year. F. Business Liability Insurance. Tenant shall keep in force with insurers that are reasonably acceptable to the Landlord and which are licensed to do business in the Commonwealth of Pennsylvania, a policy to cover business liability, including premises operations liability and business interruption liability, in which the limits of coverage shall not be less than $1,000;000.00, single limit. In addition to Tenant, the po'iicy shall name Landlord as an additional insured. Tenant shall continually provide Landlord with a certificate of such insurance, which shall provide that the insurer will give the Landlord at least 30 days' written notice prior to any cancellai:ion of, lapse or material change in the insurance. G. Indemnification. Tenant will, subject to the provisions of paragraph H below, indemnify, save harmless and defend Landlord and its officers, agents and servants, from and against any and all claims, actions, liability and expense in connection with loss of life, bodily injury and/or damage to property arising from or out of any occurrence in, upon or at the Premises, or the occupancy or use by Tenant, its agents, employees, servants, subtenants, licensees or concessionaires, of the Premises or any part thereof, or outside the Premises which is occasioned wholly or in part by any willful or negligent act or omission of Tenant, its agents, employees, servants, subtenants, licensees or concessionaires, unless the same be caused by the willful or negligent act or omission of Landlord, its agents, employees or servants. :;. H. Waiver of Sub~,o ation. Anything in this Lease to the contrary notwithstanding, it is agreed thateach party (the "Releasing Party") hereby releases the other (the "Released Party") from any liability which the Released Party would, but for this paragraph H, have had to the Releasing Parry during the term of this Lease, resulting from the occurrence of any accident or occurrence or casualty (i) which is or would b`e covered by an "all-risk" policy (irrespective of whether .such coverage is being carried by the Releasing Party), or (ii) covered by any other casualty or property damage insurance being carried by the Releasing Party at the time of such occurrence, which accident, occurrence or casualty may have resulted in whole or in part from any act or neglect of the Released Party, its officers, agents or employees; PROVIDED, HOWEVER, the release hereinabove set forth 11 • sFic\dlb\rsr\brandy\calab~ese.lease June 9, 2006 shall become inoperative and null and void if the Releasing, Party wishes to place the appropriate;insurance with an insurance company which (a) takes the position that the existence of such release vitiates or would adversely affect any policy so insuring the Releasing Party in a substantial manner and notice thereof is given to the Released P'` , or (b) requires the payment of a higher premium by reason of the existence o :such release, unless in the latter case the Released Party within 10 days after notice thereof from the Releasing Party pays such increase in premium. 18. EMINENT DOMAIN. If the whole of the Premises shall be taken or condemned, or r purchased in lieu thereof, by any government authority for any public or quasi-public use or purpose, then, in that event, the term of this Lease shall cease and terminate from the time when the possession shall be required for such.use or purpose. The rent shall in such case be apportioned to the date of such taking or purchase, as the case may be. In the event of a partial taking only of the Premises, the Landlord shall so notify the Tenant in writing and the Tenant shall have the option to cancel this Lease, giving the Landlord written notice within twenty (20) days after receipt of such notice from the Landlord; provided the balance of the Premises remaining cannot be suitably used by the Tenant for its purposes heretofore stated. If the Tenant is entitled to exercise said option to cancel and does so, then such canceling shall be effective and the rent shall in such case be apportioned to the date of such taking or purchase, as the case may be. In the event the Tenant is not entitled do cancel the Lease or, if it is entitled to do so, it does not exercise its option, said Tenant`~vill be responsible for the rent as heretofore set forth, apportioned to the date of such tak~rig or purchase; i.e. after the taking, or purchase in lieu thereof, the rent herein reserved shall be reduced and the Tenant shall be ~ required to pay that .proportion of rent herein reserved as the net rentable square feet contained in the remaining leased space bears to the net rentable square feet contained in the leased space before such taking or purchase. The Landlord and the,~Tenant hereby agree that any award of proceeds resulting from a condemnation or salein lieu thereof of the whole or part of the Premises shall belong solely to the Landlord and the Tenant hereby waives any right to make any claim therefore as the result of this Lease. 19. ACCESS TO PREMISES Landlord or Landlord's agents shall have the right to enter the Premises at all reasonable times to examine the same and to show them to prospective purchasers, mortgagees, lessees or tenants of the Landlord, or to public officials lawfully having an interest therein, or to make such repairs, alterations, improvements or additions as the Landlord may deem necessary or desirable. Landlord shall not be liable to Tenant for any inconvenience, interferences, annoyance, loss or damage resulting from work done in or upon the Premises or any portion of the Building or adjacent grounds. Landlord will make- tall attempts to provide 24 hour advance notice of any entry, emergencies excepted; i+: ~. t' r 12 ' •she\dibirsrlbrandy\calabrese.lease June 9, 2006 '~ 20. NOTICES. Any notice which the Landlord may desire or be required to give the Tenant shall be deemed sufficiently given or rendered, if in writing, delivered to the Tenant by certified or registered mail, return receipt requested, addressed to the Tenant, at the address first above written or at .the Premises, as appropriate, and any notice which Tenant may desire or be required to give the Landlord shall be deemed sufficiently given or rendered, if in writing, delivered to Landlord by certified or registered mail, return receipt requested, addressed to its business office at: c/o RSR Realtors, 3 Lemoyne Drive, Suite 100, Lemoyne, ~PA 17043, or such other places as Tenant or Landlord may from time to time designate in writing. Any notice given hereunder shall be deemed delivered when the return receipt is signed or refusal to accept the notice is noted thereon. 21. TENANT'S DEFAUTIT. If the Annual Minimum Rent, additional rent, or any other charge payable by Tenant under this Lease shall be unpaid on the date payment is required by the terms l~~ereof and shall remain so for a period of 5 days, or if Tenant fails to perform any of the pother terms, conditions, covenants and obligations of this Lease to be observed and performed by Tenant for more-than 15 days after Landlord gives Tenant notice of such default ~it being agreed that a default, other than the failure to pay money, which is of such a character that rectification thereof reasonably requires longer than said 15 day period and completes the same with due diligence), or if Tenant shall vacate or abandon the Leased Premises or suffer this Lease to be taken under any writ of execution, attachment or other process of law, or if this Lease shall by opeiration of law devolve upon or pass to any other party, or if an "Act of Bankruptcy" (as defined in Section 18.02) shall occur, or if Landlord shall have notified Tenant of Tenant's default three (3) or more times in any twelve calendar month .period, then, in any of such events, Landlord shall have, besides its other rights or remedies, the following immediate rights: A. At its option, to terminate this Lease and the term hereby created without any right on the part of Tenant to waive the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken, whereupon Landlord shall be entitled to recover, in addition to any and all sums and damages for violation o~ Tenant's .obligations hereunder in existence at the time of such termination, damages for Tenant's. default in an amount equal to the amount of the rent reserved for the balance of the term of this Lease, as well as all other charges, payments, costs and expenses herein agreed to be paid by Tenant, all of which amount shall be immediately due and payable from Tenant to Landlord. B. At its option, ~y notice to Tenant, to re-enter and take possession. of the Leased Premises with~9ut terminating this Lease. No re-entry or taking possession of the. Leased Premiss by Landlord pursuant to this clause B. shall be construed as an election on its part to terminate this Lease unless a notice of such intention is given to Tenant (all other demands and notices of forfeiture or other similar notices being hereby expressly waived by Tenant). 13 -sheldlblrsrlbrandylcalabrese.lease June 9, 2006 C. At its option, tQ require that upon (i) any termination of this Lease, whether by lapse of time oir by the exercise of any option by Landlord to terminate the same or in any other manner whatsoever, or (ii) any termination of Tenant's right to possession wit~.out termination of this Lease, Tenant shall immediately surrender possession of tine Leased Premises to Landlord and imrriediately vacate the same, and remove all ;effects therefrom, except such as may not be removed under other provisions of this Lease. D. At its option, ~o make such alterations and repairs as Landlord shall determine maybe reasonably necessary to relet the Leased Premises, and to relet the same or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease} and upon such terms and conditions as Landlord in its sole discretion may deem advisable. Upon each reletting, all rentals received by Landlord from such reletting shall be applied as follows: first, to the payment of any indebtedness other than rent or other charges due under this Lease from Tenant to Landlord; second to the payment of any reasonable costs and expenses of such reletting, including brokerage fees and attorneys' fees and costs of such alterations and repairs, each of which fees and costs shall be reasonable in amount; and third, to the payment of rent and other charges due and unpaid hereunder. In rio event shall Tenant be entitled to receive any surplus of any sums received, by Landlord on a reletting in excess of the rental and other charges payable hereunder. If such rentals and other charges received from such reletting during any month are less than those to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord (notwithstanding the fact that Landlord may have received rental in excess of the rental and other charges payable hereunder in previous or subsequent months), such deficiency to be calculated Wand payable monthly. Notwithstanding any reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach in the manner provided in this Section. E. CONFESSION OF JUDGMENT: If Tenant shall default in the payment of the rent herein reserved or in the payment of any other sums due hereunder by Tenant, Tenant hereby authorizes and empowers any Prothonotary or attorney of any court of record to appear for Tenant in any and all actions which may be brought for said rent and/or said other sums; and/or to sign for Teaant an agreement for entering in any competent court an amicable action or actions for the recovery of said rental and/or other sums; and in said suits or in said amicable action or actions to confess judgment against Tenant for al,~ or any part of said rental and/or said other sums, including but not limited to the amounts due from Tenant to Landlord under subparagrap>~s A, B, C and/or D of this paragraph; and for interest and costs, together with any attorneys' commission for collection of ten percent (10%). Such authority shall not be exhausted by one exercise thereof, but judgment mad be confessed as aforesaid from time to time as often as any of 14 ' •she\dib'lrsrlbrandylcalabrese.lease June 9, 2006 said rental and/or other sums shall fall due or be in arrears, and such powers may be exercised as well after the expiration of the initial term of this Lease and/or during. any extended or ,renewal term of this Lease and/or after the expiration of any extended or renewal term of ~hi~ I:eas~. ,, ~ .r f/ j, I (Tenant) . tf F. When this Lease and the term of any extension or renewal thereof shall have been terminated on account of any default by Tenant hereunder, and also when the terin;hereby created or any extension or renewal thereof shall have expired, it shad be lawful for any attorney of any court of record to appear as attorney. fotr Tenant as well as for all persons claiming by, through or under Tenants and to sign an agreement for entering in any competent court an amicable action in ejectment against Tenant and all persons claiming by, through or under Tenant and therein confess judgment for the recovery by Landlord of possession of the Premises, for which this Lease shall be his sufficient warrant; thereupon, if Landlord so desires, an appropriate writ of possession may issue forthwith, without any -prior writ or proceeding whatsoever, and provided that if for any reason after. such action shall have been commenced it shall be determined that possession of the Premises remain in or be restored to Tenant, Landlord shall have the right for the same default and upon any subsequent default or defaults, or upon the termination of this Lease or. Tenant's right of possession as hereinbefore set forth, to bring one or more further amicable action or actions as hereinbefore set forth to recover possession of the Premises and confess judgment -for,. the recovery of possession of the PXemise~ as hereinbefore provided. (Tenant) ~F G. In any amicable action of ejectment and/or for rent and/or other sums brought herein, Landlord shall first cause to be filed in such action an affidavit mad. by Landlord or someone acting for Landlord, setting forth the facts necessat~y to authorize the entry of judgment, of which facts such affidavit shalf: be prima facie evidence, and if a true copy of this Lease (and of the truth df the copy such affidavit shall be sufficient evidence) shall be filed in such shit, action or actions, it shall not be necessary to file the original as a warrant of attorney, any rule or Court, custom or practice to the contrary notwithstanding. ~"~] (Tenant) H. At its option, to collect from Tenant any other loss or damage which Landlord may sustain by reason of any breach and any diminished value of the Leased Premises resulting from said breach. ~, 15 is 4' %. . shcldlti\rsrlbrandy\calabrese.lease June 9, 200fi I. Landlord's Right to Cure Defaults. If Tenant fails to perform any agreement or obligation on i;~s part to be performed under this Lease, Landlord shall have the right (i) if no ~nergency exists, to perform the same after giving 15 days' notice. to Tenant; and`(iij in any emergency situation; to perform the same immediately without notice; or delay. .For the purpose of rectifying Tenant's defaults as aforesaid, Lan~lord shall have the right to enter the Leased Premises.. Tenant shall, on dem~:nd, reimburse Landlord for the costs and expenses incurred by Landlord in rectifying Tenant's defaults as aforesaid, including reasonable attorneys' fees. Landlord shall not be liable or in any way responsible for any loss, inconvenience, annoyance, or damage resulting to Tenant or anyone holding under Tenant for any action taken by Landlord pursuant to this Section. Tenant hereby waives and releases all errors and defects which may intervene in the Landlord's exercise ~ of any of its remedies hereunder, including the summary remedies; Tenant further waives the right of inquisition oa any real estate levied on and Tenant voluntarily consents to an immediate execution upon any judgment obtained by Landlord; Tenant also waives and releases all relief from any and all appraisement, stay oir exemption law of any state now in force or hereafter enacted; Tenant waives any a~otice to quit required by any law win force f he ter; enacted. ~ , (Tenant) h _ ~~ Nothing in this Section shall be deemed to limit Landlord's rights and remedies in the event of a default by'Tenant, and the Landlord's rights and remedies set forth in this Lease shall be in addition to those available to Landlord at law or in equity. 22. BANKRUPTCY. If at any time prior to or after the commencement of the term of this Lease there shall be filed by Tenant or Guarantor, in any court pursuant to any statute either of the United States or of any State, a petition in banl~-uptcy (including, without limitation, a petition for liquidation, reorganization or for- adjustment of debts of an individual with regular income), or if any case, proceeding or other action shall be commenced seeking to have an order for relief entered against Tenant or Guarantor as a debtor in bankruptcy proceedings or to adjudicate Tenant or Guarantor a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or' its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property, and such case, proceeding or other action results in the entry of an order for relief or is not dismissed within X30 days of the filing thereof, or if Tenant or Guarantor becomes insolvent or is generally not paying or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors or petitions for or enters into an arrangement ,with its creditors or a custodian is appointed or takes possession of Tenant's or Guarantor's property (whether or not a judicial proceeding is instituted in 16 ' . snc\dib~rsr\brandylcalabrese.lease June 9, 2006 connection with such arrangement or in connection with the appointment of such custodian), or if Tenant or Guarantor shall take any action to authorize or in contemplation of any of the events set forth above (each of the foregoing events to be hereinafter referred to as an "Act of Bankruptcy"), then, in addition to Landlord's other rights and remedies under this Lease and applicable Iaw, this Lease shall, at Landlord's option (and. if permitted by law), be terminated, in which event neither Tenant nor Guarantor, nor any person claiming through or under Tenant or Guarantor or by virtue of any statute or of an order of any court, shall be entitled to possession of the Premises, and ;.: Landlord, in addition to the other rights and remedies given by this Lease, or by virtue of any statute or rule of iw, may retain as liquidated damages any rent, Security Deposit or moneys received by ~andlorcl from Tenant or others in behalf of Tenant. All rent, additional rent and other charges payable by Tenant under this Lease shall constitute rent for the purpose of app~yirig the provisions of Section 502(b)(7) of the Federal Banl~uptcy Code. 7 In the event an act of bankruptcy shall occur and this Lease is not terminated pursuant to the provisions of Paragraph A, the parties agree that: A. If there shall be a default in the payment of Annual Minimum Rent or any additional rent, or a default in the observance or performance of any other provision of this Lease binding on Tenant, Landlord shall be entitled to immediately discontinue furnishing any utilities and other services it has been providing to the Premises, until such time as such defaults have been fully cured, it being agreed that the foregoing action by Landlord shall in no way cause or result in any abatement of Annual Minimum Rent or any other charge payable by Tenant during the continuance of the teen of this Lease. ~. ',, . B. If the Lease is i^issumed by a trustee in bankruptcy, and assigned by the trustee to a third party, they such party shall (a} execute and deliver to Landlord an agreement in recordable firm whereby such party confirms that it has assumed and agrees with Landlord to discharge all obligations binding on Tenant under this Lease, (b) represent and warrant in writing to Landlord that such party has a net worth and operating experience at least comparable to that .possessed by Tenant named herein and Guarantor as of the execution of this Lease, (c) deposit with Landlord a Security Deposit and advance rent equal to that initially deposited by Tenant named herein, 'and (d) grant Landlord, to secure the performance of such party's obligations under this Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and all accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Leased Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be designated by Landlord) as are necessary to perfect such lien. 17 t K x ' , shcldlb\rsr\brandy\calabrese.lease June 9, 2006 C. ,'' `;~. Any person or :yntity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. Section 101, et se~cr (the "Bankruptcy Code") shall be deeme3 without further act or deed to have assumed all of the obligations arising under tl?is Lease on and after the date of such assignment. If this Lease is assigned to any person or .entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other considerations payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Bankrupt, shall be and remain the exclusive property of Bankrupt and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other considerations constituting Landlord's property under the preceding sentence not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and be promptly paid or delivered to Landlord. 23. CONDITION OF PREMISES. It is agreed that, by occupying the Premises, Tenant acl~owledges that it; has had full opportunity to examine the Building, including Premises, and is fully informed, independently of Landlord, as to the character, construction and struc'ure of the Building and land within the Premises. It is agreed that by occupying the Premises the Tenant formally accepts the same and acknowledges that Landlord has complied with all requirements imposed upon it under the terms of this Lease. ., 24. HAZARDOUS WAS`7CE. A. Tenant hereby` covenants, represents and warrants that it shall not generate, transport, handle, store or otherwise encounter in, on or about the Premises, any hazardous waste or substance (for purposes of this Section herein called "hazardous waste") as defined by the applicable federal, state or local environmental or occupational standards, including but not limited to material defined as such in, or for purposes of, the Comprehensive Environmental Response, Compensation and. Liability Act of 1980 ("CERCLA"), as amended by the Superfund Hazardous Materials Transportation Act (49 U.S.C. § 1802 et seq.), the Resource Conservation and Recovery Act ("RCRA") (42 U.S.C. §1802, et sew.), the Federal Water Pollution Control Act (33 U.S:C. §1251, et se .), the Safe Drinking Water Act (42 U.S:C. §300(f), et seg.), the Toxic Substance Control Act (15 U.S.C. §2601, et sew.), the Clean Air Act (42 U.S.C §7401, et sue.), or any other federal, ;state or local statute, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning arxy hazardous, toxic or dangerous waste, substance, element or material as now or at any time hereafter in effect or amended (for purposes of this Section herein collectively called the. "Laws"). Tenant further covenants, represents and~;~warrants that there will be no underground storage tanks in, on, under, within or about the Premises. 18 ' ~ ~ shcldiblrsrlbrandylcalabrese.lease June 9, 2006 B. Tenant shall not use, store or permit to be stored on the Leased Premises any asbestos in any form, urea formaldehyde foam insulation, transformers or other equipment which contains ,dielectric fluid or other fluids containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million: C. Tenant covenants, represents and warrants that it will indemnify .and hold Landlord harmless. from and against any and all liability, actions, claims, losses, damages and .e~Cpenses arising out of, or in any way relating to, a breach of the representationsy warranties, covenants and agreements set forth in this Section, including: (a) claims of third parties (including governmental agencies) for damages, including personal injury or property damages, penalties, response costs, injunctive or other relief; (b) costs or removal and restoration, including fees of attorneys and experts, costs of reporting to any governmental agency the existence of hazardous substances, hazardous waste, pollutants and/or contaminants and costs of preparing or causing to be prepared any and all studies, tests, analyses or reports in connection with any environmental matter; (c) all expenses or obligations, including attorneys' fees, incurred at, before and after any trial or appeal therefrom whether or not taxable as costs, including attorneys' fees, witness fees, deposition costs and other expenses; (d) all other costs, expenses and liabilities arising from Tenant's violation of the laws or any other environmental regulation now in force or hereafter enacted; and (e) Tenant's disposal of medical waste as set forth in Paragraph A above. The obligations of Tenant as contained in this Section shall survive the termination of the Lease. 25. LANDLORD'S TITI:E. Tenant recognizes and agrees that Landlord's title is and always will be paramount to t~e title of Tenant and ,under no circumstances shall Tenant do or be empowered to do any pct which can, shall or may encumber Landlord's title or subject the Premises or Building ~r any part of either to any lien or encumbrance. 26. HOLDING OVER. ~f for any reason Tenant retains possession of the Premises or any part thereof after the termination of the term of .this Lease or any extension of the teen, .unless other written arrangements are made with Landlord, such holding over shall constitute a tenancy from month-to-month and Tenant shall pay Landlord monthly rental during the month-to-month tenancy computed at double the rate of rent payable hereunder for the final month of the last year of the term prior to such holding over. 27. NO ACCORD AND SATISFACTION. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly rent and other charges, nor shall any endorsement or statement on any check or on any letter accompanying any check be deemed an accord and satisfaction. 28. SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure to the respective partiesherein, their heirs, executors, administrators, devisees, successor and permitted assigns ro~rhomever. Any reference to Tenant he rein shall, for the purposes r~ ~~ ~~ 19 ,, . ~:~ ~• sheldlb\rsrlbrandy\calabrese.lease '~ June 9, 2006 ;. •a.. }. of determining liability for property damage and the like, be deemed to include. Tenant, his or its agents, officers; employees, servants, partners, independent contractors, licensees, invitees or visitors whomever. r 29. RESERVATIONS BY LANDLORD. In addition to other rights conferred by this Agreement or by law, the Landlord reserves the right, to be exercised in Landlord's sole discretion, to: (a) take all measures as may be necessary or desirable for .the safety, protection of the Premises or of the Building; (b) sell or mortgage the Building; (c) repair, alter, add to, improve, build additional stories on, or build adjacent to said building; (d) run necessary pipes, conduits and ducts through the Premises; and (e) carry on any work, repairs, alterations or improvements. in, on, or about the Building or in the vicinity thereof. Tenant hereby waives any claim to damage or inconvenience causes by such work. This paragraph shall not be construed to diminish the obligations of Tenant with respect to repairs or improvements or other obligations of Tenant provided herein, nor shall it be construed too create or increase any obligation on the part of Landlord with respect to repairs or improvements. 30. ESTOPPEL CERTIFICATE. At any time, and form time to time, the parties agree that within ten (10} days following request in writing from the other party, to execute, acknowledge and deliver to the requesting parry a statement in writing certifying that this Lease is unmodified acid in full force and effect (or if there have been modifications that the same is full force ;and effect as modified and stating the modification), the dates to which the rent and other charges have been paid, and any other financial data relating to this Lease or the Leased Premises which such party may reasonably request: 31. FORCE MAJEURE. In the event either party hereto shall be delayed or hindered in or prevented from the performance of any act required under this Lease by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental law or regulations, riots, insurrection, war or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then performance of any such act shall be extended for a period equivalent to the period of such delay. The provisions of this Section shall not (a) operate to excuse Tenant from prompt payment of Annual Minimum Rent or any other payment required by the terms Hof this Lease, and (b} be applicable to delays resulting from the inability of a parry to ~~btain financing or to proceed with its obligations under this Lease because of a lack of funds. r 32. ARBITRATION/WAIVER OF JURY TRIAL. Any disagreement between Landlord and Tenant with respect to the interpretation or application of this Lease, or the obligation of the parties hereunder, shall be determined by arbitration unless the parties otherwise mutually agree in writing. Landlord and Tenant shall agree upon one arbitrator, otherwise there shall be three (33, one named in writing by the Landlord and one named in writing by the Tenant within ten (10) days after notice of arbitration is served by either upon the other, and a third arbitrator selected by those two arbitrators within ten (10) days 20 ~• she\dlb~rsrlbrandylcalabrese.lease June 9, 2006 thereafter. No one shall serve as an arbitrator who is in any way financially interested in this Lease or in the affairs of either party hereto. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration laws. The arbitrator or arbitrators shall have the power to award to either party to the dispute such sums, costs, expenses, and attorney's fees as ~he arbitrator or arbitrators may deem proper. The award rendered by the arbitrator or ar~iitrators shall be appealable to a court of competent jurisdiction ~: within thirty (30) daysof notice of the arbitrators' award. Such appeal shall be prosecuted without delay and as rabidly as possible. . 33. GUARANTY. At the. -time of executing this Lease, Tenant shall provided to Landlord a signed Guaranty of Lease including the signature of the spouse, if any, in form and substance as set forth in Exhibit B hereto. Each Guarantor shall provide Landlord with a~n r annual financial statement upon request. 34. BUSINESS INTERRUPTION. Tenant acknowledges that the nature of Tenant's business involves government contracting work to which . Tenant relies on such contracting work as a substantial source of Tenant's business income. Said contracting work requires that certain qualifications. and terms be met by Tenant in order to obtain and keep said work. In light of this fact, Tenant agrees to provide Landlord written notice within fifteen {15) days of any substantial decrease in Tenant's government contracting work or the change or termination of Tenant's qualifications to the extent that said change or termination will result in loss of said contracting business to Tenant. 35. NON-WAIVER. °Th~ failure of the Landlord to seek redress for violation of, or to insist upon the strict perforn~~ance of, any covenant or condition of the Lease, shall not prevent a subsequent act, which':would have originally constituted a violation, from having all the force and effect of an original violation. The receipt by Landlord of rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. 36. SHORT FORM LEASE. Tenant agrees that, upon the written request of Landlord, Tenant will, at any time, join in the execution of a Memorandum of Lease in proper form for recording or filing yin the appropriate office of the County of Cumberland setting forth the existence and term of this Lease; and Tenant shall take such action as may be necessary to permit such recording or filing. 37. MISCELLANEOUS PROVISIONS. No act or thing done or omitted to be done by Landlord or Landlord's agents during the term of the Lease, which is necessary to enforce the terms of this Lease shall constitute an eviction by Landlord nor shall it be deemed an acceptance or surrender of said Premises, and no agreement to accept such surrender shall be valid unless in writing signed by Landlord. No employee of Landlord or Landlord's agent shall have any power. to accept the keys of said Premises prior to the termination of the Lease. The delivery of keys to any employee of Landlord or Landlord's agent shall not operate as a termination of the Lease or a surrender of the Premises. E. i 1 " 21 i ~~ ' ~- sheldlb\rsrlbrandy\calabrese.lease ~~ June 9, 2006 Tenant represents and.: warrants to Landlord that Tenant has not incurred and will not incur any liability for brokerage fees, finder's fees, agents commissions or similar compensation to third parties in connection with this lease transaction. In the event Tenant has incurred any such fees, commissions or compensation, said fees, commissions and compensations incurred shall be charges solely against Tenant. Tenant agrees to indemnify Landlord against and hold Landlord harmless from any and all liabilities arising from any claims for such fee; commissions or compensation, including, without limitations the cost of counsel fees in connection therewith. The words "Landlord" and "Tenant", wherever used in this Lease, shall be construed to mean Landlords and Tenants in all cases where there is more than one landlord or tenant, and the necessary grammatical changes required to make the provisions hereof apply either to corporations ~.or individuals, men or women, shall in all cases be assumed as though in each case fully expressed. The invalidity or uner~forceability of any provision hereof shall not affect or impair any other provision. Where Tenant hereunder- consists of more than one party, the obligations of each such parry will'be joint and several hereunder. Provisions inserted herein or affixed hereto shall not be valid unless appearing in the duplicate original hereof held by the Landlord. In the event of variation or discrepancy, the Landlord's duplicate shall control. The headings of the several articles, paragraphs and sections contained herein are for convenience .only and do not define, limit or construe 'the contents of -such articles, paragraphs and sections. All negotiations, considerations, representations and understandings between the parties are incorporated herein and are superseded hereby, and the provisions hereof may be modified or altered only by agreement in writing between the parties. There are no terms, obligations, covenants, statements, representations, warranties or conditions relating to the subject matters hereof other than those specifically contained herein. This Lease may not be amended or modified by any act or conduct of the parties or by oral agreements unless reduced and agreed to in writing signed by both Landlord and Tenant. No waiver of any of the terms of this Lease by Landlord shall be binding on Landlord unless reduced to writing and signed by Landlord. Nothing contained in this Lease shall be construed to be or to create a partnership or j oint ,, venture between the parties hereto. This Lease shall be .::governed by and enforced in accordance with the laws of the Commonwealth of Pennsylvania. This Lease represents the entire understanding and agreement of the parties and the terms and provisions of this Lease shall only be modified or amended in writing signed by all parties hereto. 22 ' ~~ sheldib\rsr\brandy\calabrese.{ease June 9, 2006 IN WITNESS WHEREOF, the parties intending to be legally bound have set their hands and seals the day and ye~.r first above written. WITNESS: LANDLORD: BRANDY INVESTOR, L.P. y By:. Bra y Mechanicsburg, LLC ~ Ge erg-Parer By: --` William F. othm n, Managing Member ATTEST: TENANT: CALABRESE & SONS, INC. r~ By:,, , ~ , ~ ~r ' ,President 23 EXHIBIT A ALL~THAT CERTAIN piece or parcel of land, situate, lying and being in Mechanicsburg Borough, Cumberland County shown as New Lot 2 on the Calabrese & Sons, Inc. Preliminary/Final Subdivision/Lot Consolidation Plan Recorded Apri13, 2006 in the Cumberland County Recorder of Deeds Office in Plan Book 92 Page 44 to wit: BEGINNING at a point on the southern side of Brandy Lane at a 5/8 inch rebar with cap thence South 27 degrees 04 minutes 00 seconds East a distance of 376.89 feet to a point thence North 37 degrees 14 minutes 52 seconds East a distance of 509.19 feet to a point thence North 37 degrees OS minutes Ol seconds East. a distance of 66.58 feet to a point thence South 42 degrees OS minutes 07 seconds East a distance of 179.93 feet to a point thence South 24 degrees 27 minutes 41 seconds East a distannce of 490.52 feet to a point thence South 65 .degrees 27 minutes 00 seconds West a distance of 593.70 feet to a point thence North 27 degrees 04 minutes 00 seconds West a distance of 744:.09 feet to a point thence North 40 degrees 20 minutes 30 seconds East a distance of 54.16 feet to a point and place of BEGINNING. she\dlb\rsrlbrandy\calabrese.lease June 9, 2006 EXHIBIT B PERSONAL GUARANTY OF LEASE In consideration of the making of the above Lease, dated June 9, 2006, by the Tenant with the Landlord at the request of the undersigned, and in reliance of this Guaranty, the undersigned hereby unconditionally and irrevocably guarantees the payment of the rent to be paid by the Tenant and the performance by the Tenant of all the terms, conditions, covenants and agreements of the Lease, and the undersigned promises to pay all the Landlord's expenses, including reasonable attorney's fees, incurred by the Landlord in enforcing this Guaranty. The Landlord's consent to any assignment or assignments, and successive assignments by the Tenant and Tenant's assigns, of this. Lease, made either with or without notice to the undersigned, or a changed or different use of the demised premises, or Landlord's forbearance delays, extensions of time or any other reason whether similar to or different from the foregoing, shall in no way or manner release the undersigned from liability as Guarantor. Where the undersigned include more than one parry, the obligation of each such party hereunder will be joint and several. It will not be necessary for Landlord to proceed first against Tenant in invoking any of Landlord's lease remedies before proceeding to enforce this Guaranty of Lease. WITNESS the hand and seal of the undersigned at the date of the above Lease. GUARANTOR: o eph Calabrese 25 VERIFICATION I, William Rothman, hereby verify that I am a Partner in Brandy Investors, LP, and, as such, I am authorized to verify the averments of the foregoing document are true and correct to my personal knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. §4904, relating to unsworn falsification to authori- ties. :f Date: ~/ ~ By: ~, r :. 7 (_ < ' r--- ~ != .Y_T ~. ~..~ _ ; ,~ t^ ~ r ,. e - " 7 , ~ 1/~ j`' ..~ ~ ~ a . ~ -~ 'tai ~ ~ v ~ ~ `.~ ~ ~ ~~ REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: ~ietrzak cr,ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams~a Rea~erAdlerPC.coni 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. :CIVIL ACTION CALABRESE & SONS, INC. and, NO. O ~'-~ ~ 7 ~ ~ l CJ c JOSEPH CALABRESE, . Defendants :CONFESSION OF JUDGMENT AFFIDAVIT OF NON-MILITARY SERVICE Commonwealth of Pennsylvania ) ss: County of Cumberland ) The undersigned, being duly sworn according to law, deposes and says that the Defendant(s) is/are not in the Military or Naval Service of the United States or Allies, or otherwise within the provisions of the Soldiers' and Sailors' Civil Relief Act of Congress of 1940, as amended: Jo H. Pietrzak, squire Sworn to and subscribed Before me this ~`~' day of ~ ~ , 2007. otary Public COMMONWEALTH OF PENNSYLVANIA Notarial Seal public QebOrah L B ~n~~ ~ry Camp Hilo Boro, res June 1 S, 2010 My Commission FBI Mornber, Pennsylvanle Adsoclsllan of Nat+rrlbs ~J t.~; ~ ~.3 ~ ~~ ~~ ~~ i sari -- ~`'J ~`Af"' ~~ ^! .~~ f`~3 ^-..1 "~ REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: Jpietrzak ,ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(c~Rea~erAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, : IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff CIVIL ACTION v. CALABRESE & SONS, INC., NO. d ~ ^ '~~a, ~ /v c ~~ Defendant :CONFESSION OF JUDGMENT AFFIDAVIT THAT JUDGMENT IS NOT BEING ENTERED BY CONFESSION OF JUDGMENT AGAINST A NATURAL PERSON IN CONNECTION WITH A CONSUMER CREDIT TRANSACTION Commonwealth of Pennsylvania ) ss: County of Cumberland ) I, John H. Pietrzak, being duly sworn according to law, hereby state that the judgment being entered by confession is not being entered against a natural person in connection with a consumer credit transaction. Sworn to and subrscribed Before me this ~`- day of ~y'Gt~S~- , 2007. otary Public Jo H. Pietrzak, Esqui COMMONWEALTH_OF PENNSYLVANIA Notarial Seal Deborah L Brermerrian, Notary Public Camp Hill Born, Cumbeiiartd County My Commission Expires Jur>e 18, 2010 Member, Pennsylvania Assnclatinn of Nntaris~ t~ ° -~`~ ^- tea t =~ ~~ - ., ..f n ,-. ~ f- o. v _~ - ~ s x .y~i '_~:'~ =-._ ~ s _ -'"' , ., ` C~~ ~' ; #V ;,; .. -~..d ~ REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: Jpietrzak(cc~ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney LD. No. 67987 Email: Twilliams(cr~,RcagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, IN THE COURT OF COMMON PLEAS, Plaintiff :CUMBERLAND COUNTY, PENNSYLVANIA v. :CIVIL ACTION CALABRESE & SONS, INC. and, NO. U'7' .. l~'l-~ ~Lv~ L ~~ JOSEPH CALABRESE, : Defendants :CONFESSION OF JUDGMENT ENTRY OF APPEARANCE TO THE PROTHONOTARY: Enter my appearance for the above-named Defendants pursuant to the Warrant of Attorney contained in the Lease agreement between the parties, attached hereto. Respectfully submitted, REAGER & ADLER, P.C. Date: August 8, 2007 ~ Jo . Pietrz squire ' " . shcldit5trsrlbrandylplabrese.lease June 9, 2006 COMMERCIAL LEASE AGREEMENT THIS LEASE AGREEMENT, made as of the 9~' day of June, 2006, by and between BRANDY INVESTORS, L.P., a Pennsylvania limited partnership, with a mailing address of c/o RSR Realtors, 3 Lemoyne Ilrive, Suite 100, Lemoyne, PA 17043, hereinafter referred to as "Landlord", and CALABRESE & SONS, INC., a Pennsylvaaia business corporation, with a mailing address of P.O. Box 1667, Mechanicsburg, PA 17055, hereinafter referred to as "Tenant". WHEREAS, Landlord desires to lease to Tenant the premises comprised of an office and warehouse located at r406 Brandy Lane, Borough of Mechanicsburg, Cumberland County, Pennsylvania-(the Building ), and the Tenant desires to lease the same upon the terms and conditions and for the good and valuable considerations described in this lease agreement, hereinafter sometimes referred to as the "Lease"; NOW THEREFORE, the parties hereto agree as follows: 1. LEASED PREMISES. Landlord leases, demises and lets to the Tenant, office and warehouse space identified as the Building, and hereinafter sometimes referred to as the "Premises", and Tenant hereby leases from Landlord the entire Premises known as 406 Brandy Lane, Mechanicsburg, Cumberland County, Pennsylvania 17055, consisting of an approximate 80,000 square foot Building, together with all easement rights and appurtenances applicable thereto. ~. 2. TERM. The term of this Lease is for a period of tea (10) years, commencing on the Stn day of June, 2006 (the commencement date), being the date of the real estate- settlement of the sale of the Premises from Tenant (Seller) to Landlord (Buyer), and ending at midnight on the 30`~ day of June, 2016. Landlord and Tenant acknowledge that Tenant is currently in possession of and occupies the Premises as of the commencement date. , Provided this Lease is not in default, Tenant is granted an option to renew this Lease as follows: (1) at the option of Tenant, the term of the Lease may be extended for two (2) renewal periods of five (5) years each by written notice to the Landlord at least 180 days prior to the expiration of the term or any renewal term thereof, as the case may be; (2) upon any valid exercise of any such option to renew, terms of the Lease shall remain in full force and effect except that the minimum annual rent for each renewal period shall be adjusted as set forth in Paragraph 3 below. 3. RENTAL. Tenant shall pay to Landlord a total, rent of $280,100.00 during the first (1St) year. term of the Lease, payable in monthly installments of $23,341.67. In addition, Tenant shall pay such Additional Rent, as set forth herein. The monthly rental shall be payable in advance on the first day of each month beginning as of the commencement date set forth in Paragraph 2 above, at such address designated by Landlord in Paragraph 1 - shcldiblrsrlbrandylcalabrese.lease • June ~, 2006 20 (entitled Notices) herein below, or such other places as subject to the following: at the time of settlement on the ae Landlord may designate, Tenant (Seller) to Landlord (Buyer), Tenant will rovide le of the real estate from (3) months base rent in the amount of $70,025.00 to be held dlord with a credit of three for the month of June 2006 will be prorated at settlement. by Landlord in escrow. Rent Tenant, shall thereafter commence in advance on the Regular rental payments by The rent as set forth above shall remain constant for the rfirst~y ~f ,the f°llowing month. above there on an annual basis rent shall increase b two (lsc) year of the lease term. pnor lease year s rent as follows: y and one half percent (2.5%) Lease Year yew 1: Annual Rent Monthl Rent Year 2: ~ $280,1 OO.QO $287 102 50 $23,341.67 Year 3: , . $294 280 06 $23,92,5.21 Year 4: , . $301 637 06 $24,523.34 Year S: ~ , . $309 177 98 $25,136.42 Year 6: , . $316 907 42 $25,764.83 Year 7: , . $324 830 10 $26,408.95 Year 8:: , . $332 950 85 $27,069.18 Year 9: ~ , . $341 274 62 $27,745.90 year 10~: , . $349 806 48 $28,439.55 , . $29,150.54 Any rental payment not received by the 5th of the month shall b The rent- for the renewal t e subs ect to a S % late fee. erms set forth in paragraph 2 ab one-half percent (2.5%°) above the prior lease year's rent ov all increase by two and e , as the case maybe. . rent or ri p or renewal lease year's All amounts (other than Rental, which shall be payable as he ' the ~ Tenant to the Landlord hereunder shall be paid withi rein set forth) owed by date that Landlord; renders statements of account then five (5) days from the (including Rental) not paid when due shall accrue and be efore and all amounts one percent 1 % ~ ar interest at the rate of ( )per month (twelve percent (12%) annually) until a' the essence in Tenant's a p id. Time is of p yment of Rental and Tenant's performance of each and every term, covenant and condition of this Lease incumbent on T errant. 4• REAL ESTATE TABS, A• Real Estate Taxes. As Additional Rent, Tenant a e levied upon the subject property o f an ~' es to pay all real estate taxes Payments by Tenant of all real estate taxes sha 1 comrn.~ng ~~e ~sessments. the rentals hereunder. nce simultaneously with 2 • ~ . shckllb~rsrlbrandylcalabrese.lease June 9, 2006 B. Personal Property Taxes. Tenant. agrees to pay any and all taxes levied upon the personal property, including trade fixtures and inventory, kept on the premises, as well as all taxes levied against the land and the building and improvements situated thereon or on the rents derived by Landlord therefrom during the term of the Lease after~presentation to Tenant by Landlord of statements from the taxing jurisdiction m which said property is located. Landlord may,,: however, direct the taxing authorities to send the statements directly to the Tenant. Landlord further agrees that Tenant, in the name of Landlord, but at Tenant's sole expense, may protest any assessment before any taxing authority or board or maintain any necessary legal action in reference to said assessment or for the recovery of any taxes paid thereon. Nothing herein contained shall require Tenant to pay any income or excess profit taxes assessed against Landlord or any corporation, capital stock or franchise tax imposed upon . Landlord. C. Method of Payment. Landlord shall give written notice advising Tenant of the amount of real estate taxes, together with a copy of the tax bill, and Tenant shall pay such amount to Landlord- within the first thirty (30) days of the face amount period.. Landlord and Teaant acknowledge that at the real estate closing Landlord (Buyer) will not reimburse Tenant (Seller) for the current year real county/towashp and school real estate taxes that have been paid by Tenant, and Tenant will be considered paid until the next calendar or fiscal year tax billing periods ~ as applicable. If this. Lease shall terminate during a tax year, Tenant shall p~.y to Landlord a pro rata portiori of the amount that would have been due for the full tax year based on the number of days of said tax year expired on the date of termination. 5. UTILITIES AND SERVICES. Tenant-shall contract in its own name for and promptly pay all charges for electricity, gas, water, sewer, telephone and any other utility used or consumed in the Premises to the concern furnishing the same. Landlord shall not be .liable. in any way to Tenant for any failure or defect in or of any utility service furnished to the Premises by reason of any requirement, act or omission of the public utility company serving the Premises with electricity, water or other utility service, or because of necessary repairs or improvements. Tenant's use of electric energy in the Premises shall not at any time exceed the capacity of any of the electrical conductors and equipment in or otherwise serving the Premises. To insure that such capacity is not exceeded and to avert possible adverse effect upon the Building electric service, Tenant shall nit, without Landlord's prior written consent in each instance (which shall not be unreasonably withheld) connect any additional fixtures, appliances or equipment (other tha~i lamps, typewriters and similar small office machines) to the Building electric distribution systems or make any alteration or addition to the electric system of the Premises existing on the commencement date of this Lease. 3 • ~ , slic\dlblrsrlbrandy\calabrese.lease June 9, 2006 6. MAINTENANCE OF LEASED PREMISES. A. Maintenance by Teaant. Tenant shall, at its sole cost, keep and maintain the interior Leased Premises [together with exterior (i) windows, including sashes, (ii) heating, ventilating and air conditioning' equipment and sewer and other lines serving the Leased Premises], including without limitation, the partitions, ceiling, interior portions of exterior walls, floor covering therein, and the fixtures, equipment, machinery, appliances and utility lines therein and appurtenances thereof [such as, but not limited to, lighting fixtures and- lenses and such fixtures, equipment, machinery controls, appliances and utility lines and appurtenances thereof, as are used for, in connection with or which are a part of the electrical, plumbing, heat~~g, air conditioning, ventilating„ or any other mechanical systems in or serving t~:e Leased Premises], in conformity with Landlord's hazard insurer, neat and clean and in good order, condition, maintenance and repair. Tenant shall also at its cost 'procure and maintain in the Leased premises all safety appliances required by Landlord's hazard insurer to be maintained therein. Tenant .shall be responsible for' the cost of replacement of any and all plate; window and other glass (structural or otherwise) in, on or about the Leased Premises, which may be broken or destroyed. Before undertaking repairs to the Leased Premises (other than minor interior non-structural repairs), Tenant shall first obtain Landlord's approval of the plans and specifications therefore, which approval is not to be unreasonably withheld. Tenant shall contract with a heating and air conditioning contractor, approved by Landlord, who shall provide a complete service and maintenance contract to Tenant at least annually, the inspection of the HVAC equipment serving the Leased Premises, including a written report of the condition there of to be provided to Landlord and Tenant, the periodic oiling of the equipment where required, the tightening of belts, the filling of pitch pans and the sealing of :water leaks, among other things. The service and maintenance contract and it~~ related costs shall be the sole cost and expense of the Tenant. The existence of a service contract with a Landlord approved vendor shall not relieve Tenant of its r obligations to maintain and repair such equipment as above provided. r 3 i. s B. Roof Repair and Replacement. The current condition of the roof requires repair the cost of which has been provided for through the escrow of funds by Tenant (Seller) at the time of closing on the sale of the real estate to Landlord (Buyer). Landlord shall `make such required repairs and use said escrow funds. In addition, to the extent that the existing roof requires replacement during the term of this lease, or any renewal terms, Landlord's cost of the roof replacement shall be amortized over the remaining lease term, including any renewal terms, and Tenant's rent shall be increase by said amount. Landlord shall give Tenant thirty (30) days advance notice of any increase in rent. 4 silcldib'Gsrlbrandylcalabrese.lease June 9, 2006 C. Maintenance by Landlord. Subject to the obligations of .Tenant under the provisions of I3 above, the foundations, ~ roof (excluding interior ceilings) and except as specifically provided in B above, and exterior portions of the exterior walls of the Lased Premises shall be maintained by Landlord at its expense ~ in good order, condition, maintenance and repair. Landlord shall not be deemed to have breached its obligation to make the repairs required of Landlord as set forth in this Section; or to be liable for any damages resulting therefrom, unless Landlord fails F to make the same within a reasonable period (taking into consideration tl:Ie type of repair involved) after receiving notice from Tenant of the need therefor. 7. SECURITY. The three (3) month base rent balance in the. amount of $70,025.00 set forth in Paragraph 3 above shall serve as Landlord's deposit the receipt of which is hereby acknowledged as security for the full and faithful performance by Tenant of each and every term, covenant, and condition of this Lease. In the event that Tenant defaults in any of the terms, provisions, covenants, and conditions of this Lease, including but not limited to payment of :any rental or additional rental, Landlord may use, apply, or retain the whole or any part' of the security so deposited for the payment of any such sum in default, or for any other sum which Landlord may expend or be required to expend by reason of Tenant's deult, including any damages or deficiencies in the reletting of the premises, whether st~,ch damage or deficiency may occur before or after -some . repossession proceeding or other reentry by Landlord. In the even that Tenant shall fully and faithfully comply with all the terms and conditions of this Lease, the security or any balance thereof, shall be returned to Tenant after expiration of the lease term. The Tenant shall not be entitled to any interest on the aforesaid security. If the Landlord utilizes any of the security depositin curing a default on the part of Tenant, Tenant shall immediately pay Landlord the amount necessary to restore the security deposit to its original amount. 8. PERMITTED USES BY TENANT. Tenant represents, covenants and warrants that ,the Premises will be used lawfully for the following purposes: A machine shop operation 9. OTHER IMPOSITIONS. In addition to the Rental provided hereunder, Tenant agrees to pay each and all licenses and permit fees and all taxes and increase in taxes levied and assessed by any governmental body by virtue of any special leasehold improvements or by virtue of Tenant conducting its described use, business or operation on the Premises, the employment of agents, servants, or other third parties, the bringing, keeping or selling . of personal property or .chattels of whatsoever nature from the Premises. The foregoing is intended to bind Tenant to pay, and promptly discharge, all taxes and/or levies, together with related interest acid penalties, whether assessed by Federal. or State authority or any political subdivision thereof, directly or indirectly related to its business, improvements, functioning, employment, assets, existence, sales entertainment or the like. Tenant specifically agrees to reimburse Landlord for any increase in ad valorem taxes resulting 5 .. {: ' ' . si~cldiblrsrlbrandylcalabrese.lease ~ June 9, 2006 from use of fixtures or improvements by Tenant which Landlord becomes obligated to PaY• 10. ASSIGNMENT AND SUBLEASE. Tenant shall not make or permit any assignment (by operation of law or otherwise) of this Lease without the prior express written consent of Landlord.. Tenant- shall make no sublease or mortgage of this Lease, in whole or in. part, without the prior express written, consent of Landlord. Tenant shall not permit the use or occupancy of the Premises, or any portion thereof, by anyone other than Tenant and shall not make an~r transfer of any nature whatsoever of its-right under this Lease or of Tenant's interests set forth in this Lease without. the prior written consent of Landlord ~: first had and obtained., Any such assignment or any such subletting, whether approve by Landlord or not, shallFnot relieve the Tenant of any liability for the total agreed rentals due hereunder nor frorn Tenant's obligation to perform all the covenants herein contained. Any written consent which may in any specific instance or circumstance be given by Landlord shall not imply or be deemed to be consent in any other instance or circumstance. r 11. SUBORDINATION, ATTORNMENT AND NON-DISTURBANCE. The parties acknowledge and agree that this Lease Agreement is under, subject, and subordinate to any and all mortgages and security interests that presently encumber the property or that in the future may encumber the property of which the leased premises is a part without the necessity of any further instrument or act on the part of the Tenant to effectuate such subordination. Tenant agrees, at the election of Landlord, to attorn to any holder of any mortgage to which this lease is subordinate. Tenant shall execute and deliver upon demand such further .instrument or instruments confirnung such subordination of this Lease to all underlying leases and to the lien of any such mortgage and/or other encumbrance as shall 'be desired by any such mortgage or proposed mortgage or by any other person. Tenant ~iereby appoints Landlord the attorney-in-fact of Tenant irrevocably to execute and delivery any such instrument or instruments for and in the name of Tenant. If Landlord shall mortgage the real property of which the leased premises is a part, Landlord shall obtain ~rom the lienholder aNon-Disturbance Agreement for the benefit of Tenant. Any Non-Disturbance Agreement is subject to the requirement that Tenant shall not have been . in default under the terms, covenants and conditions of this lease or any time during the Lease tzrm. 12. COMPLIANCE WITH LAWS AND INDEMNIFICATION. Tenant agrees to strictly comply with all pertinent laws, ordinances, statutes and regulations whatsoever, of any governmental body or subdivision, incident to its occupancy of the Premises and its use thereof. Tenant further covenants and agrees to indemnify and hold Landlord harmless from any loss, cost or expense whatsoever, directly or indirectly resulting or occasioned to, or imposed upon, Landlord (1) by injury to or destruction of life or property resulting from the use and occupancy by Tenant (including, but not limited to any such injury or destruction caused, in whole or in part, by its agents, servants, employees, independent 6 4 4 ' ~ . sfic\diblrsrlbrandy\calabrese.lease June 9, 2006 contractors, invitees a~ licensees), or (2) by damage to or destruction of the Building structure, or any part hereof, or of any abutting real property caused by or attributable to the negligent act or alts or omission or omissions to act of Tenant (including but .not r limited to, any such damage or destruction caused, in whole or in part, by its agents,. servants, employees, cbntractors, invitees, or licensees) or caused by or attributable to the Tenant's failure to perdrm its obligations under this lease. As used in this Paragraph 12 the term "Landlord" shall be deemed to include any agent, employee or servant of Landlord. 13. QI7IET ENJOYMENT UNTENANTABILITY. Landlord hereby warrants that Tenant upon payment of the rent and performing the provisions of this Lease on its part to be paid and performed shall have .peaceful and quiet possession of the Premises against all parties claiming adversely thereto by or under Landlord. If, during the term of this Lease, the Building or building equipment or Premises be destroyed by fire or any other cause whatsoever, or partially destroyed so as to render the Premises wholly unfit for occupancy, and Landlord shall conclude that they cannot be repaired for occupancy within 120 days from the happening of the loss of damage, then this Lease shall, at Landlord's option, irritmediately terminate in which case Tenant shall surrender the Premises and all intezest therein and Tenant shall pay rent only to the time of such surrender. In case of total or partial damage or destruction to the Premises, Landlord rriay re-enter and repossess the same or any part thereof for the purpose of removing or repairing the loss or damage and shall proceed with reasonable dispatch to the repair of same unless, under the foregoing clause of this paragraph, the Lease shall have terminated. The rent during the period of such repairs shall be wholly abated if all of the Premises have been thus repossessed by Landlord for the purpose of repair for the period that Tenant has been thus dispossessed; and if only a portion of the Premises are thus repossessed, the rent shall be abated for the period of such dispossession ratably, based on the portion of the Premises thus repossessed. Should the Building or Premises be destroyed or damaged by fire or other cause, due to the fault or neglect of'Tenant or its agents, servants, employees, independent. contractors, invitees, or licenses, the Landlord may repair such damage without prejudice to any rights of subrogation of Landlord's insurer and there shall be no apportionment or abatement of rent. 14. SIGNS.. Tenant shall ,not erect or install any sign or other type display whatsoever, either upon the exterior of t1:e Building, upon or in any window, or door therein located, or the Premises, without the~prior express written consent of Landlord. Any free-standing sign to be situate on the Premises shall be approved in writing by Landlord and comply with all applicable Township signage requirements. It is the responsibility of the Tenant to investigate all appropriate governmental authorities governing sign size and location and to optain approval.. ; 7 • shcldibtrsrlbrandylcalabrese.lease t June 9, 2006 15. TENANT'S CARE OF PREMISES. Tenant shall not make alterations in, or additions or improvements to the Premises without the prior express written consent of Landlord. Landlord's refusal to grant such consent shall be inclusive. In addition: A. .Tenant shall commit no waste with respect to the Premises and shall take good care of and keep in good repair the Premises and .fixtures therein and,- at the expiration or earlier termination or cancellation of this Lease, shall surrender the Premises and ~t~res therein in the same condition as when initially received by Tenant, subject only to reasonable wear and tear resulting from normal use, and shall surrenderfall keys for the Premises to Landlord at the place then fixed for-the payment of rent and shall remove all Tenant's property before surrendering the Premises. All (injuries to the Building or fixtures caused by moving the property of Tenant in qr out of the Premises, and any and all breakage or other injury whatsoever done by Tenant, its agents, servants, employees, independent contractors, licenses, invitees, or visitors, as well as any damage done by water, steam, electricity, fire or other substance due to the neglect of the aforesaid parties, may be repaired by Landlord, at the expense of Tenant, and shall become due and payable upon delivery of a statement of such charges by Landlord to Tenant or mailing the same postage prepaid, to Tenant at his last known address. B. All alterations,, additions or improvements upon or affixed to or in the Premises (including, but not limited to carpets, drapes and anything bolted, nailed, plumbed or otherwise secured in a manner customarily deemed to be permanent) shall be deemed to be : a fixture inuring to the Building, and. shall not be subject to attachment of a mechanic's, materialman's or similar lien, and shall in any event be and become the property of Landlord and remain upon the Premises and be surrendered at fthhe end of this Lease, Business machines and such equipment axe excluded from his section. { ,. C. Tenant shall ndt use or permit to be brought into the Premises or the Building any J~ flammable or explosive material or other articles deemed hazardous to persons or property. Tenant shall not occupy the Premises in any manner which shall invalidate or tie . in conflict with fire or other insurance policies covering the Building or its operation or the Premises, or increase the rate of fire or other insurance in the Building or its operation or the Premises, over that in effect prior to this Lease. If, by any reason of failure of Tenant to comply with provisions of this paragraph, any insurance premium shall be at the beginning of this Lease or any time thereafter be higher than it otherwise would be, the Tenant shall reimburse the ~,andlord as additional rent hereunder for that part of all insurance premiums thereafter paid by Landlord, which shall have been charged because of such failure by Tenant and shall make such reimbursement upon the first day of the month following such payment by Landlord. ,~ 8 - shcldlblrsrlbrandylcalabrese.lease ~;, June 9, 2Q06 ;; D. Tenant shall not permit any obnoxious odors, chemicals or othex substances to be produced, manufactured or stored in the demised premises. A breach of the provision shall ~e deemed a material breach of this Lease entitling the Landlord to exercise. any remedies available to it hereunder or at law. i 16. WAIVER OF CLAIMS. To the extent permitted by law, the Landlord shall not be liable for and the Tenant releases the Landlord and Landlord's agents, contractors and servants from, and waives all claims for damage to person or property sustained by the Tenant or any occupant of the Building or Premises resulting from the use and condition of the Premises or anypart or any equipment or appurtenance becoming out of repair, or resulting from any accident in or about the Premises, or resulting directly or indirectly from any act or neglect of any tenant or occupant of the Premises or of any other person, including Landlord, its' agents or employees. This section shall apply especially, but not exclusively, to the flooding of basement or other subsurface areas, and to damage caused by refrigerators, sprinkling devices, air-conditioning apparatus, water, snow, frost, steam, excessive heat or colds falling plaster, broken glass, sewage, gas, odors or noise, or the bursting or leaking of pipes or plumbing fixtures, and shall apply equally whether any such damage results fr'4m the act or neglect of the Landlord or of any other persons, and whether such damage be caused or result from any thing or circumstance above mentioned or referred , or any other thing or circumstance whether of a like nature or of a wholly different nature. If any such damage, whether to the Premises or the Building, i. result from any act or :neglect of the Tenant, the Landlord may, at the Landlord's option, repair such damage acid the Tenant shall, upon demand by the Landlord, reimburse the Landlord forthwith for•' the total cost of such repairs. Tenant covenants to indemnify and save Landlord harmless against and from any and. all loss, cost, damage, claim, liability or expense including, but not limited to,.reasonable attorney's fees, arising out of or resulting from any injury or claim of injury of any nature of sort whatsoever to any person or property suffered or received in or about the Premises at any time during the term hereof, or arising out of any failure of Tenant in any respect to: comply with any of the requirements or provisions of this Lease. Tenant hereby releases Landlord and Landlord's officers, agents, employees and servants, from any and all claims or demands for damages, loss, expense or injury to the Premises, or to the furnishings and fixtures and equipment, or inventory or other property of Tenant in, about or upon the Premises, as the case may be, which nay be caused by or result from perils, events or happenings which are the subject of insurance carried by the Tenant and in force at the time of any such loss. All property of any bind belonging to the Tenant or any other person that is in the Building or the Premises shall be there at the sole risk of the Tenant or other person only, and the Landlord shall not be liable for damage thereto or theft or misappropriation thereof. Landlord or its agents, servants or employees, shall not be liable .for any injury, loss or damage to any;persons or property on or about the premises from any other cause of whatsoever natures unless the same is directly caused by gross negligence of the Landlord and there is no fault or negligence of the Tenant, and Tenant shall save Landlord harmless and indemnified against such injury, loss or damage, or liability or claim thereof arising from any act, omission or negligence of Tenant. 9 •sheldlb\rsrlbrandy\calabrese.lease June 9, 2006 17. TENANT'S INSURANCE. Tenant shall, during the entire term hereof, at its sole cost and expense, obtain, maintain and keep in full force and effect the following policies of insurance: ;,. A. All risk insurance including fire insurance (with extended coverage and vandalism. and malicious r~.ischief coverage), water damage, sprinkler leakage and plate glass insurance, on the standard forms, insuring all of Tenant's property in the Premises, and all betterments, additions, repairs, improvements and alterations made to the Premises by Tenant, and all plate glass windows, plate glass doors and other plate glass in the Premises, in an amount equal• to 100% of the replacement cost thereof. B. A combination ~f comprehensive general liability insurance -and excess (umbrella) coverage to include personal injury, bodily injury, broad-form property damage, operation's hazard, independent contractor's coverage, blanket contractual liability (including insuring contractual liability under the indemnifications of Landlord by Tenant set forth in this Lease), premises operations liability and in limits approved by Landlord in~writing which approval shall not be unreasonably withheld. Said policies shall name Landlord as an additional insured. C. Worker's compensation and employer's liability insurance in a form and amount required by law. D. Any, other form or forms of insurance standard to the industry as Landlord may reasonably regti~ire from time to time in form, in amounts and for insurance risks against which i~ prudent Tenant would protect 'itself. ~~- . All policies sh~.ll be taken out with insurers that are reasonably acceptable to the Landlord and which are. licensed to do business. in the Commonwealth of Pennsylvania and certificates showing that such coverages to be in effect shall be furnished to Landlord upon request. In addition to Tenant, all policies shall also name Landlord and .any other person, firm or corporation designated by Landlord and in privity :with it, as an additional insured. Each insurer -shall agree, by endorsement upon the certificate issued by it or by independent instrument issued to Landlord, that it will give .Landlord thirty (30) days' written notice before the policy in question shall be altered or canceled. Tenant shall be entitled to provide the insurance :coverage required hereby through the use of blanket insurance policies covering the Premises. Tenant agrees that certificates of insurance shall be delivered to Landlord as soon as practicable after the placing of the required insurance and that renewal certificate shall be delivered not less than ten (10) days prior to the expiration of such policies. E. Insurance on Buildings and Improvements. As additional rent, in each calendar year during the term, Tenant shall pay to Landlord, Landlord's total cost of 10 I; . • i ' • shcldlblrsrlbrandylcalabrese.lease t June 9, 2006 #:. insuring the Premises and improvements thereon, including public liability, (including "umbrella coverage"), workmen's compensation and hazard insurance (including rental value insurance, fire and extended coverage [with vandalism and malicious mischief endorsement]; boiler and machinery, and all-risk policies). Tenant's insurance payment shall be paid in monthly installments on the first day of each calendar month during the term in advance, in an amount reasonably estimated by Landlord. Within 90 days after the end of each calendar year during the term, Landlord shall furnish Tenant with a statement summarizing the actual insurance cost for such calendar year. F. Business Liability Insurance. Tenant shall keep in force with insurers that are reasonably acceptable to the Landlord and which are licensed to do business in the Commonwealth of Pennsylvania, a policy to cover business liability, including premises operaEions liability and business interruption liability, in which the limits of coverage shall not be less than $1,000;000.00, single limit. In addition to Tenant, the policy shall name Landlord as an additional insured. Tenant shall continually provide. Landlord with a certificate of such insurance, which shall provide that the insurer will give the Landlord at least 30 days' written notice prior to any cancellation of, lapse or material change in the insurance. ~: G. Indemnification. Tenant will, subject to the provisions of paragraph H below, indemnify, save harmless and defend Landlord and its officers, agents and servants, from and against any and all claims, actions, liability and expense in connection with loss of life, bodily injury and/or damage to property arising from or out of any occurrence in, upon or at the Premises, or the occupancy or use by Tenant, its .agents, employees, servants, subtenants, licensees or concessionaires, of the Premises or any part thereof, or outside the Premises which is occasioned wholly or in part by any willful or negligent act or omission of Tenant, its agents, employees, servants, subtenants, licensees or concessionaires, unless the same be caused by the willful or negligent act or omission of Landlord, its agents, employees or servants. :;. H. Waiver of Sub.o;;ation. Anything in this Lease to the contrary notwithstanding, it is agreed that ;each party (the "Releasing Party") hereby releases the other (the "Released Party") from any liability which the Released Party would, but for this paragraph H, !nave had to the Releasing Party during the term of this Lease, resulting from the occurrence of any accident or occurrence or casualty (i) which is or would be covered by an "all-risk" policy (irrespective of whether .such coverage is being carried by the Releasing Party), or (ii) covered by any other casualty or property damage insurance being carried by the Releasing Party at the time of such occurrence, which accident, occurrence or casualty may have resulted in whole or in part from any act or neglect of the Released Party, its officers, agents or employees; PROVIDED, HOWEVER, the release hereinabove set forth 11 •she\dlblrsrlbrandylcalabrese.lease June 9, 2006 shall become inoperative and null and void if the Releasing, Party wishes to place the appropriate;insurance with an insurance company which (a) takes the position that the existence of such release vitiates or would adversely affect any policy so , insuring the Re'~easing Party in a substantial manner and notice thereof is given to the Released Party, or (b) requires the payment of a higher premium by reason of the existence o :such release, unless in the latter case the Released Party within 10 days after notice thereof from the Releasing Party pays such increase in premium. 18. EMINENT, DOMAIl~. If the whole of the Premises shall be taken or condemned, or purchased in lieu thereof, by any government authority for any public or quasi-public use or purpose, then, in that event, the term of this Lease shall cease and terminate from the time when the possession shall be required for such. use or purpose. The rent shall in such case be apportioned to the date of such taking or purchase, as the case may be. In the event of a partial taking only of the Premises, the Landlord shall so notify the Tenant in writing and the Tenant shall have the option to cancel this Lease, giving the Landlord written notice within twenty (20) days after receipt of such notice from the Landlord; provided the balance of the Premises remaining cannot be suitably used by the Tenant for its purposes heretofore stated. If the Tenant is entitled to exercise said option to cancel and does so, then such canceling shall be effective and the rent shall in such case be apportioned to the date of such taking or purchase, as the case maybe. In the event the Tenant is not entitled do cancel the Lease or, if it is entitled to do so, it does not exercise its option, said Tenant'will be responsible for the rent as heretofore set forth, apportioned to the date of such tak~rig or purchase; i.e. after the taking, or purchase in lieu thereof, the rent herein reserved shall be reduced and the Tenant shall be ~ required to pay that ,proportion of rent herein reserved as the net rentable square feet contained in the remaining leased space bears to the net rentable square feet contained in the leased space before such taking or purchase. The Landlord and the: Tenant hereby agree that any award of proceeds resulting from a condemnation or sale in lieu thereof of the whole or part of the Premises shall belong solely to the Landlord and the Tenant hereby waives any right to make any claim therefore as the result of this Lease. 19. ACCESS TO PREMISES Landlord or Landlord's agents shall have the right to enter the Premises at all reasonable times to examine the same and to show them to prospective purchasers, mortgagees, lessees or tenants of the Landlord, or to public officials lawfully having an interest therein, or to make such repairs, alterations, improvements or additions as the Landlord may deem necessary or desirable. Landlord shall not be liable to Tenant for any inconvenience, interferences, annoyance, loss or damage resulting from work done in or upon they Premises or any portion of the Building or adjacent grounds. Landlord will make ,all attempts to provide 24 hour advance notice of any entry, emergencies excepted; ~:. 12 ' • shcldib'trsrlbrandylcalabrese.lease June 9, 2006 .`, 20. NOTICES. Any notice which the Landlord may desire or be required to give the Tenant shall be deemed sufficiently given or rendered, if in writing, delivered to the Tenant by certified or registered mail, return receipt requested, addressed to the Tenant, at the address first above written or at .the Premises, as appropriate, and any notice which Tenant may desire or be required to give the Landlord shall be deemed sufficiently given or rendered, if in writing, delivered to Landlord by certified or registered mail, return receipt requested, addressed to 'its business office at: c/o RSR Realtors, 3 Lemoyne Drive, Suite 100, Lemoyne, PA 17043, or such other places as Tenant or Landlord may from time to time designate in writing. Any notice given hereunder shall be deemed delivered when the return receipt is signed or refusal to accept the notice is noted thereon. 21. TENANT'S DEFAUTIT. If the Annual Minimum Rent, additional rent, or any other charge payable by Tenant under this Lease shall be unpaid on the date payment is required by the terms Y~~ereof and shall remain so for a period of S days, or if Tenant fails to perform any of the ether terms, conditions, covenants and obligations of this Lease to be observed and performed by Tenant for more than 15 days after Landlord gives Tenant notice of such default ~(it being agreed that a default, other than the failure to pay money, which is of such a character that rectification thereof reasonably requires longer than said 15 day period and corrlpletes the same with due diligence), or if Tenant shall vacate or abandon the Leased Premises or suffer this Lease to be taken under any writ of execution, attachment or other process of law, or if this Lease shall by operation of law devolve upon or pass to any other party, or if an "Act of Bankruptcy" (as defined in Section 18.02) shall occur, or if Landlord shall have notified Tenant of Tenant's default three (3) or more times in any twelve calendar month .period, then, in any of such events, Landlord shall have, besides its other rights or remedies, the following immediate rights: A. At its option, to terminate this Lease and the term hereby created without any right on the part of .Tenant to waive the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken, whereupon Landlord shall be entitled to recover, in addition to any and all sums and damages for violation o~ Tenant's .obligations hereunder in existence at the time of such termination, damages for Tenant's default in an amount equal to the amount of the rent reserved fir the balance of the term of this Lease, as well as all other charges, payments, costs and expenses herein agreed to be paid by Tenant, all of which amount shall be immediately due and payable from Tenant to Landlord. B. At its option, ~y notice to Tenant, to re-enter and take possession. of the Leased Premises with~3ut terminating this Lease. No re-entry or taking possession of the. Leased Premises by Landlord pursuant to this clause B. shall be construed as an election on its part to terminate this Lease unless a notice of such intention is given to Tenant (all other demands and notices of forfeiture or other similar notices being hereby expressly waived by Tenant). 13 • shcldiblrsrlbrandylcatabrese.lease June 9, 2006 C. At its option, t~ require that upon (i) any termination of this Lease, whether by lapse of time o~ by the exercise of any option by Landlord to terminate the same or in any other manner whatsoever, or (ii) any termination of Tenant's right to possession witl#out termination of this Lease, Tenant shall immediately surrender possession of tie Leased Premises to Landlord and immediately vacate the same, and remove all effects therefrom, except such as may not be removed under other provisions of this Lease. D. At its option, ~o make such alterations and repairs as Landlord shall determine maybe reasonably necessary to relet the Leased Premises, and to relet the same or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and upon such terms and conditions as Landlord in its sole discretion may deem advisable. Upon each reletting, all rentals received by Landlord from such reletting shall be applied as follows: first, to the payment of any indebtedness other than rent or other charges due under this Lease from Tenant to Landlord; second to the payment of any reasonable costs and expenses of such reletting, including brokerage fees and attorneys' fees and costs of such alterations and repairs, each of which fees and costs shall be reasonable in amount; and third,. to the payment of rent and other charges due and unpaid hereunder. In r~o event shall Tenant be entitled to receive any surplus of any sums received, by Landlord on a reletting in excess of the rental and other charges payable hereu~ler. If such rentals and other charges received from such reletting during any month are less than those to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord (notwithstanding the fact that Landlord may have received rental in excess of the rental and other charges payable hereunder in previous or subsequent months), such deficiency to be calculated ~~and payable monthly. Notwithstanding any reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach in the manner provided in this Section. E. CONFESSION OF JUDGMENT: If Tenant shall default in the payment of the rent herein reserved or in the payment of any other sums due hereunder by Tenant, Tenant hereby authorizes and empowers any Prothonotary or attorney of any court of record to appear for Tenant in any and all actions which may be brought for said rent and/or said other sums; and/or to sign for Tenant an agreement for entering in any competent court an amicable action or actions for the recovery of said rental and/or other sums; and in said suits or in said amicable action or actions to confess judgment against Tenant for a1~ or any part of said rental and/or said other sums, including but not limned to the amounts due from Tenant to Landlord under subparagraphs A, B, C and/or D of this paragraph; and for interest and costs, together with any attorneys' commission for collection of ten percent (10%). Such authority shall not be exhausted by one exercise thereof, but judgment mad be confessed as aforesaid from time to time as often as any of 14 ' • shc~dlb'lrsrlbrandylcalabrese.lease June 9, 2006 said rental and/or other sums shall fall due or be in arrears, and such powers may be exercised. as well after the expiration of the initial term of this Lease and/or during. any extended or .renewal term of this Lease and/or after the expiration of any extended or renewal term of thi Leas f' % (Tenant) F. When this Lease and the term of any extension or renewal thereof shall have been terminated on account of aay default by Tenant .hereunder, and also when the tern hereby created or any extension or renewal thereof shall have expired, it shad be lawful for any attorney of any court of record to appear as attorney, fair Tenant as well as for all persons claiming by, through or under Tenants and to sign an agreement for entering in any competeat court an amicable action in ejectment against Tenant and all persons claiming by, through or u~gder Tenant and therein confess judgment for the recovery by Landlord of possession of the Premises, for which this Lease shall be his sufficient warrant; thereupon, if Landlord so desires, an appropriate writ of possession may issue forthwith, without any prior writ or proceeding whatsoever, and provided that if for any reason after, such action shall have been commenced it shall be determined that possession of the Premises remain in or be restored to Tenant, Landlord shall have the right for the same default and upon any subsequent default or defaults, or upon the termination of this Lease or Tenant's right of possession as hereinbefore set forth, to bring one or more further amicable action or actions as hereinbefore set forth to recover possession of the Premises and confess judgment for,, the recovery of possession of the ~ emise~ as hereinbefore provided. (Tenant) +t . G. In any amicable action of ejectment and/or for rent and/or other sums brought here~n, Landlord shall first cause to be filed in such action an affidavit mad, by Landlord or someone acting for Landlord, setting forth the facts necessary to authorize the entry of judgment, of which facts such ,. affidavit shalf: be prima facie evidence, and if a true copy of this Lease (and of the truth o'f the copy such affidavit shall be sufficient evidence) shall be filed in such shit, action or actions, it shall not be necessary to file the original as a warrant of attorney, any rule or Court, custom or practice to the contrary notwithstanding. (Tenant) H. At its option, to collect from Tenant any other loss or damage which Landlord may sustain by reason of any breach and any diminished value of the Leased Premises resulting from said breach. 15 r. F' • shcidlb\rsrlbrandylcalabrese.lease June 9, 2006 I. Landlord's Right to Cure Defaults. If Tenant fails to perform any agreement or obligation on ids part to be performed under this Lease, Landlord shall have the right (i) if no e~m.ergency exists, to perform the same after giving 15 days' notice. to Tenant; and= (u) m any emergency situation; to perform the same immediately without notice; or delay. .For the purpose of rectifying Tenant's defaults as aforesaid, Lan~lord shall have the right to enter the Leased Premises.. Tenant shall, on demand, reimburse Landlord for the costs and expenses incurred by Landlord in rectifying Tenant's defaults as aforesaid, including reasonable attorneys' fees. Landlord shall not be liable or in any way responsible for any loss, inconvenience, annoyance, or damage resulting to Tenant or anyone holding under Tenant for any action taken by Landlord pursuant to this Section. Tenant hereby waives and releases all errors and defects which may intervene in the Landlord's exercise ~ of any of its remedies hereunder, including the summary remedies; Tenant further waives the right of inquisition on any real estate levied on and Tenant voluntarily consents to an immediate execution upon any judgment obtained by Landlord; Tenant also waives and releases all relief from any and all appraisement, stay or exemption law of any state now in force or hereafter enacted; Tenant waives any a`~otice to quit required by any law win force f he ter; enacted. ~ , ~h (Tenant) ;;. -- Nothing in this Section shall be deemed to limit Landlord's rights and remedies in the event of a default by~Tenant, and the Landlord's rights and remedies set forth in this :~ Lease shall be in addition to those available to Landlord at law or in equity. 22. BANKRUPTCY. If at any time prior to or after the commencement of the term of this Lease there shall be filed by Tenant or Guarantor, in any court pursuant to any statute either of the United States or of any State, a petition in banla-uptcy (including, without limitation, a petition for liquidation, reorganization or for. adjustment of debts of an individual with regular income), or if any case, proceeding or other action shall be commenced seeking to have an order for relief entered against Tenant or Guarantor as a debtor in bankruptcy :proceedings or to adjudicate Tenant or Guarantor a bankrupt _or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of it or' its debts under any law relating to bankruptcy, insolvency, reorganization or relaef of debtors, or seeking appointment of a receiver, trustee, custodian or other sirriilar official for it or for all or any substantial part of its property, and such case, procee,~ing or other action results in the entry of an order for relief or is not dismissed within ?30 days of the filing thereof, or if Tenant or Guarantor becomes insolvent or is genera~ly not paying or admits in writing its inability to pay its debts as they mature, or makes an assignment for the- benefit of creditors or petitions for or enters into an arrangement with its creditors or a custodian is appointed or takes possession of Tenant's or Guarantor's property (whether or not a judicial proceeding is instituted in 16 . snc\dlb\rsrlbrandylcalabrese.lease June 9, 2006 connection with such arrangement or in connection with the appointment of such custodian}, or if Tenant or Guarantor shall take any action to authorize or in contemplation of any of the events set forth above (each of the foregoing events to be hereinafter referred to as an "Act of Bankruptcy"), then, in addition to Landlord's other rights and remedies under this Lease and applicable law, this Lease shall, at Landlord's option (and. if permitted by law), be terminated, in which event neither Tenant nor Guarantor, nor any person claiming through or under Tenant or Guarantor or by virtue of any statute or of an order of any court, shall be entitled to possession of the Premises, and ,,: Landlord, in.addition to the other rights and remedies given by this Lease, or by virtue of any statute or rule of ~~w, may retain as liquidated damages any rent, Security Deposit or moneys received by ]~andlorci from Tenant or others in behalf of Tenant. All rent, additional rent and other charges payable by Tenant under this Lease shall constitute rent for the purpose of applying the provisions of Section 502(b)(7} of the Federal Bankruptcy Code. ~~ In the event an act of bankruptcy shall occur and this Lease is not terminated pursuant to the provisions of Paragraph A, the parties agree that: A. If there shall be a default in the payment of Annual Minimum Rent or any additional rent, or a default in the observance or performance of any other provision of this Lease. binding on Tenant, Landlord shall be entitled to immediately discontinue furnishing any utilities and other services it has been providing to the Premises, until such time as such defaults have been fully cured, it being agreed that the foregoing action by Landlord shall in no way cause or result in any abatement of Annual Minimum Rent or any other charge payable by Tenant during the continuance of the term of this Lease. 4i` 4 B. If the Lease is i'~ssumed by a trustee in bankruptcy, and assigned by the trustee to a third party, they such party shall (a) execute and deliver to Landlord an agreement in recordable form whereby such party confirms that it has assumed and agrees with Landlord to discharge all obligations binding on Tenant-under this Lease, (b) represent and warrant in writing to Landlord that such party has a net worth and operating experience at least comparable to that possessed by Tenant named herein and Guarantor as of the execution of this Lease, (c) deposit with Landlord a Security Deposit and advance rent equal to that initially deposited by Tenant named herein, Viand (d} grant Landlord, to secure the performance of such party's obligations under this Lease, a security interest in such party's merchandise, inventory, personal property, fixtures, furnishings, and all accounts receivable (and in the proceeds of all of the foregoing) with respect to its operations in the Leased Premises, and in connection therewith, such party shall execute such security agreements, financing statements and other documents (the forms of which are to be designated by Landlord) as are necessary to perfect such lien. ;,. 17 i~ . she\dibUsrlbrandy\calabrese.lease June 9, 2006 C ~. Any person or entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. Section 101, et s~ (the "Bankruptcy Code") shall be deemed without further act or deed to have assumed all of the obligations arising under this Lease on and after the date of such assignment. If this Lease. is assigned to any person or .entity pursuant to the provisions of the Bankruptcy Code, any an~ all monies or other considerations payable or otherwise to be delivered in connection with such assignment shall be paid or delivered to Bankrupt, shall be and remain the exclusive property of Bankrupt and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other considerations constituting Landlord's property under the preceding sentence not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and be promptly paid or delivered to Landlord. 23. CONDITION OF PREMISES. It is agreed that, by occupying the Premises, Tenant acknowledges that it; has had full opportunity to examine the Building, including Premises, and is fuT;iy informed, independently of Landlord, as to the character, construction and structure of the Building and land within the Premises. It is agreed- that 4~ by occupying the Prei~uses the Tenant formally accepts the same and acknowledges that Landlord has complieRi with all requirements imposed upon it under the terms of this Lease. ? y. 24. HAZARDOUS WASTE. A. Tenant hereby' covenants, represents and warrants that it shall not generate, transport, handle, store or otherwise encounter in, on or about the Premises, any hazardous waste or substance (for purposes of this Section herein called "hazardous waste") as defined by the applicable federal, state or local environmental or occupational standards, including but not limited to material defined as such in, or for purposes of, the Comprehensive Environmental Response, Compensation and. Liability Act of 1980 ("CERCLA"), as amended by the Superfund :Hazardous Materials Transportation Act (49 U.S.C. § 1802 et seq.), the Resource Conservation and Recovery Act ("RCRA") (42 U.S.C. § 1802, et seg.), the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seg.), the Safe Drinking Water Act (42 U.S.C. §300(f), et sue.), the Toxic Substance Control Act (15 U.S.C. §2601, et sec,.), the Clean Air Act (42 U.S.C §7401, et s~ce ,.), or any other federal, ;state or local statute, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning ar%y hazardous, toxic or dangerous waste, substance, element or material as no~v or at any time hereafter in effect or amended (for purposes of this Section herein collectively called the. "Laws"). Tenant further covenants, represents and warrants that there will- be no underground storage tanks in, on, under, within car about the Premises. 18 ' ~ • sf~c\dib~rsrlbrandylcalabrese.lease June 9, 2006 B. Tenant shall not use, store or permit to .be stored on the Leased Premises any asbestos in any form, urea formaldehyde foam insulation, transformers or other equipment which contains, dielectric fluid or other fluids containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million: C. Tenant covenants, represents and warrants that it will indemnify .and hold Landlord harm~,ess from and against any and all liability, actions, claims, losses, damages and expenses .arising out of, or in any way relating to, a breach of the representations'? warranties, covenants and agreements set forth in this Section, including: (a)claims of third parties (including governmental agencies) for damages, including personal injury or property damages, penalties, response costs, injunctive or other relief; (b) costs or removal and restoration, including fees of attorneys and experts, costs of reporting to any governmental agency the existence of hazardous substances, hazardous waste, pollutants and/or contaminants and costs of preparing or causing to be prepared any and all studies, tests, analyses or reports in connection with any environmental matter; (c) all expenses or obligations, including attorneys' fees, incurred at, before and after any trial or appeal therefrom whether or not taxable as costs, including attorneys' fees, witness fees, deposition costs and other expenses; (d) all other costs, expenses and liabilities arising from Tenant's violation . of the laws or any other environmental regulation now in force or hereafter enacted; and (e) Tenant's disposal of medical waste as set forth in Paragraph A above. The obligations of Tenant as contained in this Section shall survive the termination of the Lease. 25. LANDLORD'S TITL:~E. Tenant recognizes and agrees that Landlord's title is and always will be paramount to tie title of Tenant and under no circumstances shall Tenant do or be empowered to do any dct which can, shall or may encumber Landlord's title or subject the Premises or Building ~r any part of either to any lien or encumbrance. 26. HOLDING OVER. ~ for any reason Tenant retains possession of the Premises or any part thereof after the termination of the term of .this Lease or any extension of the term, .unless other written arrangements are made with Landlord, such holding over shall constitute a tenancy from month-to-month and Tenant shall pay Landlord monthly rental during the month-to-month tenancy computed at double the rate of rent payable hereunder for the final month of the last year of the term prior to such holding over. 27. NO ACCORD AND SATISFACTION. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly rent and other charges, nor shall any endorsement or statement on any check or on any letter accompanying any .check be deemed an accord and satisfaction. 28. SUCCESSORS AND! ASSIGNS. This Agreement shall be binding upon and inure to the respective partiesherein, their heirs, executors, administrators, devisees, successor and permitted assignswhomever. Any reference to Tenant he rein shall, for the purposes i{' F. ' } 19 ~~ j~. ~• shcldlblrsrlbrandylcalabrese.lease ~~ June 9, 2006 ' ,~: a. of determining liability for property damage and the like, be deemed to include. Tenant, his or its agents, of,~cers, employees, servants, partners, independent contractors, licensees, invitees or visitors whomever. 29. RESERVATIONS BY LANDLORD. In addition to other rights conferred by this Agreement or by law, the Landlord reserves the right, to be exercised in Landlord's sole discretion, to: (a) take all measures as may be necessary or desirable for the safety, protection of the Premises or of the Building; (b) sell or mortgage the Building; (c) repair, alter, add to, improve, :build additional stories on, or build adjacent to said building; (d) run necessary pipes, conduits and ducts through the Premises; and (e) carry on any work, repairs, alterations or ~ improvements in, on, or about the Building or in the vicinity thereof. Tenant hereby waives any claim to damage or inconvenience causes by such work. This paragraph shall not be construed to diminish the obligations of Tenant with respect to repairs or improvements or other obligations of Tenant provided herein, nor shall it be construed to create or increase any obligation on the part of Landlord with respect to repairs or improvements. a'. 30. ESTOPPEL CERTIFICATE. At any time, and form time to time, the parties agree that within ten (10) days following request in writing from the other party, to execute, acknowledge and deliver to the requesting party a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications that the same is full force and effect as modified and stating the modification), the dates to which the rent and other charges have been paid, and any other financial data relating to this Lease or the Leased Premises which such party may reasonably request: 31. FORCE MAJEURE. In the event either party hereto shall be delayed or hindered in or prevented from the performance of any act required under this Lease by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, restrictive governmental law or regulations, riots, insurrection, war or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then performance of any such act shall be extended for a period equivalent to the period of such delay. The provisions ofthis Section shall not (a) operate to excuse Tenant from prompt payment of Annual Minimum Rent or any other payment required by the terms'.Kof this Lease, and (b) be applicable to delays resulting from the inability of a party to ~~btain financing or to proceed with its obligations under this Lease because of a lack of funds. r. } 32. ARBITRATION/WA;IVER OF JURY TRIAL. Any disagreement between Landlord and Tenant with respect to the interpretation or application of this Lease, or the obligation of the parties hereunder, shall be determined by arbitration unless the parties otherwise mutually agree in writing. Landlord and Tenant shall agree upon one arbitrator, otherwise there shall be three (3~; one named in writing by the Landlord and one named in writing by the Tenant within ten (10) days after notice of arbitration is served by either upon the other, and a third arbitrator selected by those two arbitrators within ten (10) days 20 ~• shcldlb~rsrlbrandyicalabrese.lease June 9, 2006 thereafter. No one shall serve as an arbitrator who is in any way financially interested in this Lease or in the affairs of either party hereto. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration laws. The arbitrator or arbitrators shall have the power tQ award to either party to the dispute such sums, costs, expenses, and attorney's fees as ~.ie arbitrator or arbitrators may deem proper. The award rendered by the arbitrator or arbitrators shall be appealable to a court of competent jurisdiction within thirty (30) days Hof notice of the arbitrators' award. Such appeal shall be prosecuted without delay and as rabidly as possible. ~: 33. GUARANTY. At the. time of executing this Lease, Tenant shall provided to Landlord a signed Guaranty of Lease including the signature of the spouse, if any, in form and substance as set forth in Exhibit B hereto. Each Guarantor shall provide Landlord with an annual financial statement upon request. 34. BUSINESS INTERRUPTION. Tenant acknowledges that the nature of Tenant's business involves government contracting work to which . Tenant relies on such contracting work as a substantial source of Tenant's business income. Said contracting work requires that certain qualifications. and terms be met by Tenant in order to obtain and keep said work. In light of this fact, Tenant agrees to provide Landlord written notice within fifteen (15) days of any substantial decrease in Tenant's government contracting work or the change or termination of Tenant's qualifications to the extent that said change or termination will result in loss of said contracting business to Tenant. 35. NON-WAIVER. Thy failure of the Landlord to seek redress for violation of, or to insist upon the strict performance of, any covenant or condition of the Lease, shall not prevent a subsequent act, which;:would have originally constituted aviolation, -from having all the force and effect of an original violation. The receipt by Landlord of rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. 36. SHORT FORM LEASE. Tenant agrees that, upon the written request of Landlord, Tenant will, at any time, join in the execution of a Memorandum of Lease in proper form for recording or filing yin the appropriate office of the County of Cumberland setting forth the existence and term of this Lease; and Tenant shall take such action as may be necessary to permit such recording or filing. 37. MISCELLANEOUS .PROVISIONS. No act or thing done or omitted to be done by Landlord or Landlord's agents during the term of the Lease, which is necessary to enforce the terms of this Lease shall constitute an eviction by Landlord nor shall it be deemed an acceptance or surrender of said Premises, and no agreement to accept such surrender shall be valid unless in writing signed by Landlord. No employee of Landlord or Landlord's agent shall have any power. to accept the keys of said Premises prior to the termination of the Lease. The delivery of keys to any employee of Landlord or Landlord's agent shall not operate as a termination of the Lease or a surrender of the Premises. ~:. 21 ~. . , ~; • shcldlb\rsrlbrandy\calabrese.lease ~= June 9, 2006 Tenant represents and:: warrants to Landlord that Tenant has not incurred and will not incur any liability for brokerage fees, finder's fees, agents commissions or similar compensation to third parties in connection with this lease transaction. In the event Tenant has incurred any such fees, commissions or compensation, said fees, commissions and compensations incurred shall be charges solely against Tenant. Tenant agrees to indemnify Landlord against and hold Landlord harmless from any and all liabilities arising from any claims for such fee; commissions or compensation, including, without limitations the cost of counsel fees in connection therewith. The words "Landlord" and "Tenant",. wherever used in this Lease, shall be construed to mean Landlords and Tenants in all cases where there is more than one landlord or tenant, and the necessary grammatical changes required to make the provisions hereof apply either to corporations ;.or individuals, men or women, shall in all cases be assumed as though in each case fully expressed. The invalidity or unennforceability of any provision hereof shall not affect or impair any other provision. Where Tenant hereunder- consists of more than one party, the obligations of each such party will'be joint and several hereunder. Provisions inserted herein or affixed hereto shall not be valid unless appearing in the duplicate original hereof held by the Landlord. In the event of variation or discrepancy, the Landlord's duplicate shall control. The headings of the several articles, paragraphs and sections contained herein are for convenience .only and do not define, limit or construe 'the contents of such articles, paragraphs and sections. All negotiations, considerations, representations and understandings between the parties are incorporated herein and are superseded hereby, and the provisions hereof may be modified or altered only by agreement in writing between the parties,. There are no terms, obligations, covenants, statements, representations, warranties or conditions relating to the subject matters hereof other than those specifically contained herein. This Lease may not be amended or modified by any act or conduct of the parties or by oral agreements unless reduced and agreed to in writing signed by both Landlord and Tenant. No waiver of any of the terms of this Lease by Landlord shall be binding on Landlord unless reduced to writing and signed by Landlord. Nothing contained in his Lease shall be construed to be or to create a partnership or joint venture between the parties hereto. This Lease shall be .;governed by and enforced in accordance with the laws of the Commonwealth of Peruisylvania. This Lease represents the entire understanding and agreement of the parties and the terms and provisions of this Lease shall only be modified or amended in writing signed by all parties hereto. 22 ' r~ shcldib\rsrlbrandylcalabrese.lease June 9, 2006 IN WITNESS WHEREOF, the parties intending to be legally bound have set their hands and seals the day and year first above written. M. WITNESS: LANDLORD: BRANDY INVESTOR, L.P. ~. By:. Bra y Mechanicsburg, LLC ~ G~e~ier~-Parer By: William F. othm n, Managing Member ATTEST: TENANT: CALABRESE & SONS, INC. J ,f /~ By; _/~Lr t ,President 23 + ~ ~ '. EXHIBIT A ALL~THAT CERTAIN piece or parcel of land, situate, lying and being in Mechanicsburg Borough, Cumberland County shown as New Lot 2 on the Calabrese & Sons, Inc. Preliminary/Final Subdivision/Lot Consolidation Plan Recorded Apri13, 2006 in the Cumberland County.Recorder ofDeeds Office in Plan Book 92 Page 44 to wit: BEGINNING at a point ~on the southern side of Brandy Lane at a 5/8 inch rebar with cap thence South 27 degrees 04 minutes 00 seconds East a distance of 376.89 feet to a point thence North 37 degrees 14 minutes 52 seconds East a distance of 509.19 feet to a point thence North 37 degrees OS minutes Ol seconds East. a distance of 66.58 feet to a point thence South 42 degrees OS minutes 07 seconds East a distance of 179.93 feet to a point thence South 24 degrees 27 minutes 41 seconds East a dist~ce of 490.52 feet to a point thence South 65 degrees 27 minutes 00 seconds West a distance of 593.70 feet to a point thence North 27 degrees 04 minutes 00 seconds West a distance of 744:.09 feet to a point thence North 40 degrees 20 minutes 30 seconds East a distance of 54.16 feet to a point and place of BEGINNING. she\dib\rsrlbrandy\calabrese.lease June 9, 2006 EXHIBIT B PERSONAL GUARANTY OF LEASE In consideration of the making of the above Lease, dated June 9, 2006, by the Tenant with the Landlord at the request of the undersigned, and in reliance of this Guaranty, the undersigned hereby unconditionally and irrevocably guarantees the payment of the rent to be paid by the Tenant and the performance b~ the Tenant of all the terms, conditions, covenants and agreements of the Lease, and the undersigned promises to pay all the Landlord's expenses, including reasonable attorney's fees, incurred by the Landlord in enforcing this Guaranty. The Landlord's consent to any assignment or assignments, and successive assignments by the Tenant and Tenant's assigns, of this. Lease, made either with or without notice to the undersigned, or a changed or different use of the demised premises, or Landlord's forbearance delays, extensions of time or any other reason whether similar to 'or different from the foregoing, shall in no way or manner release the undersigned from liability as Guarantor. Where the undersigned include more than one party, the obligation of each such party hereunder will be joint and several. It will not be necessary for Landlord to proceed first against Tenant in invoking any of Landlord's lease remedies before proceeding to enforce this Guaranty of Lease. WITNESS the hand and seal of the undersigned at the date of the above Lease. GUARANTOR: o eph Ealabrese 25 ~°"~ hJ _ r' -: .. ~ ___ _. --t ~ .~ t r -p ~ ... ~: ~._j _.. ._.. • 11 REAGER & ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: ~ietrzak~a,ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams~a ReagerAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, Plaintiff v. IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION CALABRESE & SONS, INC. and, NO. d ~' -. y 7oZ ~ ~v ` ~- JOSEPH CALABRESE, Defendants :CONFESSION OF JUDGMENT NOTICE Pursuant to Rule 236 of the Supreme Court of Pennsylvania, you are hereby notified that a JUDGMENT BY CONFESSION has been entered against you in the above proceeding and that enclosed herewith is a copy of all of the documents filed in support of said judgment. If you have any questions concerning this notice, please call John J. Pietrzak at (717) 763-1383. r thonotary ~~ SHERIFF'S RETURN - REGULAR ,.`CASE NO: 2007-04722 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL MARK CONKLIN Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT IN CONFESSION was served upon CALABRESE & SONS INC the DEFENDANT at 1615:00 HOURS, on the 13th day of August 2007 at 406 BRANDY LANE MECHANICSBURG, PA 17055 JOSEPH CALABRESE, OWNER by handing to a true and attested copy of COMPLAINT IN CONFESSION OF JUDGMENT, RULE 236 NOTICE, ENTRY OF APPEARANCE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.56 Affidavit .00 Surcharge 10.00 .00 gJaa~n? ~ 38.56 Sworn and Subscibed to before me this _ day So Answers: R. Thomas Kline 08/14/2007 REAGER & ADLER By: Deputy Sheriff of A.D. SHERIFF'S RETURN - REGULAR ,.'CASE NO: 2007-04722 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL MARK CONKLIN Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT IN CONFESSION was served upon CALABRESE JOSEPH the DEFENDANT at 1615:00 HOURS, on the 13th day of August 2007 at 406 BRANDY LANE MECHANICSBURG, PA 17055 JOSEPH CALABRESE by handing to a true and attested copy of COMPLAINT IN CONFESSION OF JUDGMENT, RULE 236 NOTICE ENTRY OF APPEARANCE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 6.00 Service .00 Affidavit .00 Surcharge 10.00 .00 ~~a~ ~b7 ~^ / 16.00 Sworn and Subscibed to before me this day So Answers: R. Thomas Kline 08/14/2007 REAGER & ADLER By. De uty Sheriff of A.D. ~; 0;,~4-20pT 04:50P1~ FROIA-Gin~rich,Smith,Klin~snc~aith,i Dolan BRANDY INVESTORS, I,1', Piairriff vs. CALAl3RESE & SONS, Ir1C. and. JOSEPH CAJrAB~LESE, .. Def~x-dants T1T36T321li T-438 P.002/002 F-41T IN THE COURT.OF CO~+lMON PLEAS OF C[JbIBF.ItLAND COUNTY, PENNSYLVANIA No. 4722 CIVII, 2007 CxVIL ACTION - X.AW JUDGMENT RELEASE In relation to the ab~ ve referenced Judgment, for value received, the undersigned, with the Iegal authority to do so, herby releases from the lien, eft and operation of the above judgment: Ai,L THAT CERT.~.~T tract of land known as Lot No. 1, Brandy Lane, partly:n. the Township of Hampden and partly in the $orough of Mechanicsburg, Cvuxxty of Cumberland axxd Commonwealth ofPeansy.~-arua, known as Tax Parcel No. 10-22-0521-015. Provided, however, that nothing herei~i contained shall affect such Judgment or the lien thereof or-its legal validity upon or against and; other property of Defendants or either of them in Cumberland County, Pennsylvania or elsewhere. 'This Judgnamt Reie:cise is being executedpursuant to an Order ofthe Court of Conunon Pleas ofCutzxberland County, Peralsylvania, dated August 28, 2007. witness my hand ar.d seal this ~~ day of B/Y~'2007. BRANDY INVESTORS, LP /~ ohn H. Pietrzak, Esq. Reager & Adler, P.C. Attorneys for Brandy Investors, LP (717) 763-1383 .' ~. ALL T~iAT CERTAIN tract of laud with improvcnsents thereon erected situate partly in Hampden Township and partly in the Borough of Mechanicsburg, Cumberland County, Pennsylvania, bounded and described according to the Calabrese & Sons, Inc., Preliminary/Final Subdivision/Lot Consolidation Plan prepared by Penn Terra Engineering, Inc., dated November 16, 20Q5, and recorded in Cumbcrlat-d County, Pennsylvania Plan Book,92, Page 44, as follows: BEGINNING at as iron pin found onthededicatedright-of--way line of Brandy Lane (SO' row) at the northwestern corner of land now or formerly of Mary Frances & Floyd E. Weaver, thence along said Land of Weaver and Land now or fotxnerly of William L, Jr. And bcborah S. Shipman, South 50 degrees 34 minutes 52 seconds East 244.48 feet to an iron pin found; thence along said land of Shipman, an unapencd street, and laud now or formerly of Stephen F. & Laura E. Sinkonis, North 38 degrees 35 minutes 08 seconds East 435.00 feetto a~nironpin found; thence alo~ag . an uaopcaed street, land now or formerly of Roy E. & Carol P. Mason, Bay Street (private), and land now or formerly of Jeffrey T. & Loaaime R. Flemimg, North 38 degrees, 40 minutes 48 seconds East 332.11 feet to a ~/:" pipe found; thence along land now or formerly of the United States of .America, South 31 degrees 45 minutes O1 second East 1,080.42 feet to a 1"pipe filled with concrete; thence along same, South 65 degrees 41 minutes 40 seconds West 658.31 feet to an iron pin found; thence along Ncw Lot 2 as set forth ontheabove-zefereaced Plan the following three courses and distances: (1) North 24 degrees 27 minutes 41 seconds West 490.52 feet to an iron pia found; (2) North 42 degrees OS minutes 07 seconds West 179.93 feet to an imnpin found; and (3) South 37 degrees OS minutes Ol second West 66.58 feet to an iron pin found; thence along laced now or formerly of Michael S. Nailor, North 50 degrees 34 minutes 52 s®conds West 325.26 feet to an iron pin found; thence along said Brandy Lace, North 38 degrees 53 minutes 34 seconds East 55.03 feet to an iron pin found, the point and place of Beginning. BF.JrTGNew Lot 1 onthe Calabrese 8c Sons,Inc.,PreliminarylFix~al SubdivisionlLot Consolidation Plan containing 14.953 acres. ~• P 00 ~ ~ ~ l ~ ~ ~ ~ 111III" V r~ . - ~ ~yy''''~~ ~~ BRANDY INVESTORS, LP, Plaintiff v. CALABRESE & SONS, INC. and, JOSEPH CALABRESE, Defendants IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO. 07-4722 CONFESSION OF JUDGMENTI NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTION~I THEREON NOTICE OF DEFENDANTS' RIGHTS ~I TO: Joseph Calabrese A judgment in the amount of $74,955.14 has been entered against you and in fa~6or of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper already signed by you. The Sheriff may take your money or other property to pay the judgment at any time after thirty (30) days after the date on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. ~, YOU MUST FILE A PETITION SEEKING RELIEF FROM THE 3UDGMENTI AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DAT~ ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. ~~ YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YO~J DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE1THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELD. Lawyer Referral Service Cumberland County Courthouse, 4~' Floor Carlisle, PA 17013 ~~ (717) 240-6200 Date: October 17, 2007 Joh~'/H. Pietrzak, Esquire REAGER & ADLER, P.C. 2331 Market Street Camp Hill, PA 17011 (717) 763-1383 Attorneys for Plaintiff, Bra Investors, LP ~ ~~ ~ ,... - y{ ' 1 • P ~~ ~ ~'aa •~~ r'l ~~ .~ ~~ ~,{ T _ ~ { ~}ry ,.l i BRANDY INVESTORS, LP, IN THE COURT OF COMMO PLEAS, Plaintiff :CUMBERLAND COUNTY, P NNSYLVANIA ~, v. :CIVIL ACTION CALABRESE & SONS, INC. and, NO. 07-4722 ~~ JOSEPH CALABRESE, ~' Defendants :CONFESSION OF JUDGMENT ~, NOTICE UNDER RULE 2958.1 OF JUDGMENT AND EXECUTIONI THEREON NOTICE OF DEFENDANTS' RIGHTS TO: Calabrese & Sons, Inc. A judgment in the amount of $74,955.14 has been entered against you and in favor of the Plaintiff without any prior notice or hearing based on a confession of judgment contained in a written agreement or other paper already signed by you. The Sheriff may take y~ur money or other property to pay the judgment at any time after thirty (30) days after the dat~ on which this notice is served on you. You may have legal rights to defeat the judgment or to prevent your money or property from being taken. YOU MUST FILE A PETITION SEEKING RELIEF FROM THE JUDGMEN'11 AND PRESENT IT TO A JUDGE WITHIN THIRTY (30) DAYS AFTER THE DAT~ ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YO~ DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE HE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELD. Lawyer Referral Service ~, Cumberland County Courthouse, 4`t' Floor Carlisle, PA 17013 (717)240-6200 Date: October 17, 2007 J~In H. Pietrzak, Esquire REAGER & ADLER, P.C. 2331 Market Street Camp Hill, PA 17011 (717)763-1383 Attorneys for Plaintiff, Bran y Investors, LP `Y ~ , ~ --~, , - _ c' :~ .~°'~ ~ "'i'ce s ..,.2 F ~~~ ^~ t ,. ^ - r i 'i' ~, ^~ } • ~ ~ rh ~. REAGER &ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney I.D. No. 79538 Email: Jpietrzak(cr~ReagerAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: TwilliamsnRea€>,erAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, Plaintiff v. CALABRESE & SONS, INC. and, JOSEPH CALABRESE, Defendants III IN THE COURT OF COMMO PLEAS, CUMBERLAND COUNTY, PE SYLVANIA CIVIL ACTION N0.07-4722 '. CONFESSION OF JUDGMENT', JUDGMENT ~I TO: Joseph Calabrese Pursuant to 42 Pa.C.S.A. 2737.1, you are hereby notified that a debtor who has lbeen incorrectly identified and had a confession of judgment entered against him shall be entitled to costs and reasonable attorney fees as determined by the court. ~', Pursuant to 42 Pa.C.S.A. § 2737.1, you are hereby notified of the instructions re arding the procedure to follow to strike off or open a confessed judgment under Pennsylva is Rule of Civil Procedure 2959, which is reproduced in full, on the following page. ~I REAGER &ADLER, P.C. ~I Date: October 17, 2007 Jo~i H. Pietrzak, Esquire 2331 Market Street Camp Hill, PA 17011 (717)763-1383 ~ -ti PENNSYLVANIA RULE OF CIVIL PROCEDURE (a)(1) Relief from a judgment by confession shall be sought by petitio .Except as provided in subparagraph (2), all grounds for relief whether to strike off the jud ment or to open it must be asserted in a single petition. The petition may be filed in the county n which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed t{~ the sheriff to enforce the judgment. ~I 2 The ground that the waiver of the due process rights of notice and hearing was not O voluntary, intelligent and knowing shall be raised only ' (i) in support of a further request for a stay of execution wh~re the court has not stayed execution despite the timely filing of a petitio for relief from the judgment and the presentation of prima facie evidenc~ of a defense; and ~, (ii) as provided by Rule 2958.3 or Rule 2973.3. II (3) If a written notice is served upon the petitioner pursuant to Rule ~959.1(c)(2) or Rule 2973.1(c), then petition shall be filed within thirty days after such service. I Unless the defendant can demonstrate that there were compelling reasons for the delay, a p~tition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief, the court shah issue a rule to show cause and may grant a stay of proceedings. After being served with a cop of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. ~~, (c) A party waives all defenses and objections which are not included in the petition or answer. (d) The petition and the rule to show cause and the answer shall be s~rved as provided in Rule 440. ~~ (e} the court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may sta proceedings on the petition insofar as it seeks to open the judgment pending disposition of the a plication to strike off the judgment. If evidence is produced which in a jury trial would req ire the issues to be submitted to the jury, the court shall open the judgment. Iii (f) The lien of the judgment of or any levy or attachment shall be pr~served while the proceedings to strike off or open the judgment are pending. ~~ ' ~ - a ~ -n , ~-1 4, ~ -i ~ _ .~t-, -~ - ~i r~-'"S t~M. .. 4S~ r --. REAGER &ADLER, P.C. BY:JOHN H. PIETRZAK, ESQUIRE Attorney LD. No. 79538 Email: ~ietrzak~Rea~erAdlerPC.com BY: THOMAS O. WILLIAMS, ESQUIRE Attorney I.D. No. 67987 Email: Twilliams(a~Rea~erAdlerPC.com 2331 Market Street Camp Hill, PA 17011 Telephone: (717) 763-1383 Facsimile: (717) 730-7366 Attorneys for Brandy Investors, LP BRANDY INVESTORS, LP, Plaintiff v. CALABRESE & SONS, INC. and, JOSEPH CALABRESE, Defendants IN THE COURT OF COMM01~7 PLEAS, CUMBERLAND COUNTY, PEINNSYLVANIA CIVIL ACTION ~I', NO. 07-4722 '. CONFESSION OF JUDGMENT', JUDGMENT TO: Calabrese & Sons, Inc. Pursuant to 42 Pa.C.S.A. 2737.1, you are hereby notified that a debtor who has een incorrectly identified and had a confession of judgment entered against him shall be entitle to costs and reasonable attorney fees as determined by the court. ~I Pursuant to 42 Pa.C.S.A. § 2737.1, you are hereby notified of the instructions re arding the procedure to follow to strike off or open a confessed judgment under Pennsylva is Rule of Civil Procedure 2959, which is reproduced in full, on the following page. !, REAGER &ADLER, P.C. I~ I Date: October 17, 2007 J~Iin H. Pietrzak, Es(~ 2331 Market Street Camp Hill, PA 17011 (717) 763-1383 r~ PENNSYLVANIA RULE OF CIVIL PROCEDURE G AND (a)(1) Relief from a judgment by confession shall be sought by petitio .Except as provided in subparagraph (2), all grounds for relief whether to strike off the jud ment or to open it must be asserted in a single petition. The petition may be filed in the county n which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff has received a writ of execution directed t the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice ar~d hearing was not voluntary, intelligent and knowing shall be raised only ~, (i) in support of a further request for a stay of execution wh~re the court has not stayed execution despite the timely filing of a petitio for relief from the judgment and the presentation of prima facie evidencee of a defense; and ~ ii as rovided b Rule 2958.3 or Rule 2973.3. IIII O p Y ~i (3) If a written notice is served upon the petitioner pursuant to Rule ~959.1(c)(2) or Rule 2973.1(c), then petition shall be filed within thirty days after such service. I Unless the defendant can demonstrate that there were compelling reasons for the delay, a p~tition not timely filed shall be denied. ~, (b) If the petition states prima facie grounds for relief, the court shali11 issue a rule to t show cause and may grant a stay of proceedings. After being served with a cop of the petition the plaintiff shall file an answer on or before the return day of the rule. The ret rn day of the rule shall be fixed by the court by local rule or special order. ~, (c) A party waives all defenses and objections which are not includell in the petition or answer. !~ (d) The petition and the rule to show cause and the answer shall be seerved as provided m Rule 440. (e) the court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may sta proceedings on the petition insofar as it seeks to open the judgment pending disposition of the a plication to strike off the judgment. If evidence is produced which in a jury trial would req ire the issues to be submitted to the jury, the court shall open the judgment. (f) The lien of the judgment of or any levy or attachment shall be pr~served while the proceedings to strike off or open the judgment are pending. ~ ~ ~ ~ ~ ~" ~=' =Z -r _I:t ~> rj1 .." . ....,t ~...~ ~ 1 ice: -. ^'r ,~~ °i F. "i .~- ""E l~ SHERIFF'S RETURN - REGULAR 'iCASE N0: 2007-04722 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL SHARON LANTZ Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE-2958.1&2737.1 was served upon CALABRESE & SONS INC the DEFENDANT at 0945:00 HOURS, on the 22nd day of October at 406 BRANDY LANE MECHANICSBURG, PA 17055 by handing to JOSEPH CALABRESE ADULT IN CHARGE a true and attested copy of NOTICE-2958.1&2737.1 together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.56 Affidavit .00 Surcharge 10.00 n_ fG~~bf U 7 .00 / `~ 38.56 Sworn and Subscibed to before me this day of , So Answers: R. Thomas Kline 10/23/2007 REAGER - ----- B A.D 2007 SHERIFF'S RETURN - REGULAR '`CASE N0: 2007-04722 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL SHARON LANTZ Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within NOTICE ag58.1 -+- a--3~.- was served upon nTT TDDL~CL' .Tr1QT:'DU the DEFENDANT at 0945:00 HOURS, on the 22nd day of October 2007 at 406 BRANDY LANE MECHANICSBURG, PA 17055 by handing to a true and attested copy of NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 6.00 Service .00 -~'~ Affidavit .00 Surcharge 10.00 R. Thomas Kline .00 sv'~eto7 `~ X6.00 10/23/2007 REAGER & ADLER Sworn and Subscibed to B~ before me this day of A.D. BRANDY INVESTORS, LP, Plaintiff v. CALABRESE & SONS, INC. and, JOSEPH CALABRESE, Defendants IN THE COURT OF COMMON PLEAS, CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION NO.07-4722 CONFESSION OF JUDGMENT PRAECIPE FOR WRIT OF EXECUTION CONFESSED JUDGMENT TO: The Prothonotary: Issue a Writ of Execution upon a judgment entered by confession in the above matter, (1) directed to the sheriff of Cumberland County; (2) against Calabrese & Sons, Inc. and Joseph Calabrese; and (3) against Integrity Bank garnishee; (4) and index this writ (a) against Calabrese & Sons, inc., and Joseph Calabrese, defendants, and (b) against IntegrityBank, as garnishee, as a lis pendens against real property of the defendant in the name of garnishee as follows: N/A (specifically describe the property) (5) Amount due: $ 67,831.59 Interest from: July 2007 $ 3,349.51 Attorney's fees $ 7,118.86 Prothonotary Filing Fee $ 24.50 Sheriff's Service $ 200.00 Certification I certify that (a) This praecipe is based upon a judgment entered by confession and (b) The Prothonotary is authorized to issue the writ of execution because notice has been served pursuant to Rule 2958.1 at least thirty days prior to the filing of this praecipe as evidenced by a return of service filed of record. Date: January 17, 2008 J H. Pietrzak, Esquire 31 Market Street Camp Hill, PA 17011 (717)763-1383 ~ ~ ~ ~ 4a~w~w~ w .c ~ o ~ c c r C ~-.o --.--~ ~' ~ A ~ y~ w ~ w w ~ ~~ W ~~.7 w w ... .~ ~~ ~ y ~~ REAGER &ADLER, PC ATTORNEYS AND COUNSELORS AT LAW 2331 MARKET STREET CAMP HILL, PENNSYLVANIA 17011-4642 717-763-1383 TELEFAX 717-730-7366 WEBSITE: ReagerAdlerPC.com THEODORE A. ADLER + DAVID W. REAGER LINUS E. FENICLE THOMAS O. WILLIAMS PETER R. WILSON Writer's E-Mail Address: JPietrzak@ReaoerAdlerPC.com January 17, 2008 via hand delivery Office of the Sheriff Cumberland County Court of Common Pleas Courthouse One Courthouse Squaze Carlisle, PA 17013 SUSAN H. CONFAIR JOHN H. PIETRZAK RICHARD J. JOYCE +Certified Civil Trial Specialist Re: Brandy Investors, LP v. Calabrese & Sons, Inc., and Joseph Calabrese Civil Action No. 07-4722 Our file no.: 07-554.000 Dear Sir: Enclosed please find the following in connection with the above-referenced matter: 1. Three time-stamped copies of a Praecipe and Writ of Execution; 2. Our check payable to the Sheriff in the amount of $200; and 3. A stamped, self-addressed return envelope. Please serve the respective time-stamped copies of both the Praecipe and Writ on the two Defendants, Calabrese & Sons, Inc., and Joseph Calabrese. The address for both Defendants is as follows: Joseph Calabrese 406 Brandy Lane Mechanicsburg, PA 17055 Calabrese & Sons, Inc. 406 Brandy Lane Mechanicsburg, PA 17055 In addition, please file the third time-stamped copy of both the Praecipe and Writ on Integrity Bank, as Garnishee, along with the attached Interrogatories. The address for the Garnishee is as follows: 1 ,,,~ Office of the Sheriff January 17, 2008 Page 2 Integrity Bank 3345 Market Street Camp Hill, PA 17011 In addition, please send a return of service for each defendant to us in the stamped, self- addressed envelope we have enclosed. If you have any questions, or require anything additional, please do not hesitate to contact us. Thank you for your assistance. Very truly yours, r- John H. Pietrzak JHP/seh Enclosures WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-4722 Civil CIVIL ACTION -LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due BRANDY INVESTORS, LP, Plaintiff (s) From CALABRESE & SONS, INC. AND JOSEPH CALABRESE, 406 BRANDY LANE, MECHANICSBURG, PA 17055 (1) You are directed to levy upon the property of the defendant (s)and to sell (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of INTEGRITY BANK, 3345 MARKET STREET, CAMP HILL, PA 17011 GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $67,831.59 Interest FROM JULY 2007 - $3,349.51 Atty's Conan Atty Paid $171.62 Plaintiff Paid Date: JANUARY 17, 2008 (Seal) L.L. $.50 Due Prothy $2.00 Other Costs ATTORNEY'S FEES - $7,111.86 Curti R. Long, Pr notary By: Deputy REQUESTING PARTY: Name JOHN H. PIETRZAK, ESQUIRE Address: 2331 MARKET STREET CAMP HILL, PA 17011 Attorney for: PLAINTIFF Telephone: 717-763-1383 Supreme Court ID No. . ~.,, ., SHERIFF'S RETURN - GARNISHEE CASE NO: 2007-04722 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL And now MICHAEL BARRICK ,Sheriff or deputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0015:23 Hours, on the 29th day of Janua~ 2008, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , CALABRESE & SONS INC in the hands, possession, or control of the within named garnishee INTEGRITY BANK 3345 MARKET ST CAMP HILL, PA 17011 Cumberland County, Pennsylvania, by handing to JEIAN RAUCHOT (BANK MANAGER) personally three copies of interogatories together) with 3 true and attested copies of the within WRIT OF EXECUION and made the contents there of known to His . Sheriff's Costs: So ans~~ ~~ Docketing . 0 0 ~'.'" „~~~,.,~-~-~ ~ ~~,.~%..:~.~~` Service .00 Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County . 0 0 0 0 / i/.~ i~0 P c~ 01/30/2008 Sworn and Subscribed to before me this day of By f Deputy She iff A.D .:.. "~ SHERIFF'S RETURN - GARNISHEE CASE NO: 2007-04722 P COMMONWEALTH OF PENNSLYVANIA COUNTY OF CUMBERLAND BRANDY INVESTORS LP VS CALABRESE & SONS INC ET AL And now MICHAEL BARRICK ,Sheriff or l3eputy Sheriff of Cumberland County of Pennsylvania, who being duly sworn according to law, at 0015:23 Hours, on the 29th day of January 2008, attached as herein commanded all goods, chattels, rights, debts, credits, and moneys of the within named DEFENDANT , CALABRESE JOSEPH in the hands, possession, or control of the within named Garnishee INTEGRITY BANK 3345 MARKET ST CAMP HILL, PA 17011 Cumberland County, Pennsylvania, by handing to JEIAN RAUCHOT (BANK MANAGER) personally three copies of interogatories together with 3 true and attested copies of the within WRIT OF EXECUTION and made the contents there of known to His Sheriff's Costs: So answers / Docketing .00 '~' Service • 00 ~`" Affidavit .00 R. Thomas Kline Surcharge .00 Sheriff of Cumberland County .00 . 0 0 / ~~3/~D ~ 01/30/2008 Sworn and Subscribed to before me this day of By eputy her ff A.D 1 __" R. Thomas Kline, Sheriff, who being duly sworn according to law, states this writ is returned SATISFIED. Sheriff s Costs: Docketing Poundage Advertising Law Library Prothonotary Mileage Misc. Surcharge Levy Post Pone Sale Garnishee Bad Check Charge Postage TOTAL $ 18.00 1356.64 .50 2.00 13.44 40.00 20.00 9.00 1459.58 / -~~~°~~°p Pd by Defendant So Answers; r^ L .~+..~j~"r~ R. Thomas Kline, Sheriff w au is A. rew ~ o~ d z z ~nr sooz ~= _ .~~12~3HS 3H1 .~0 331.~~0 J :,,y -; .~ oG / ~/ r, z J Y WRIT OF EXECUTION and/or ATTACHMENT COMMONWEALTH OF PENNSYLVANIA) COUNTY OF CUMBERLAND) NO 07-4722 Civil CIVIL ACTION -LAW TO THE SHERIFF OF CUMBERLAND COUNTY: To satisfy the debt, interest and costs due BRANDY INVESTORS, LP, Plaintiff (s) From CALABRESE & SONS, INC. AND JOSEPH CALABRESE, 406 BRANDY LANE, MECHANICSBURG, PA 17055 (1) You are directed to levy upon the property of the defendant (s)and to sell (2) You are also directed to attach the property of the defendant(s) not levied upon in the possession of INTEGRITY BANK, 3345 MARKET STREET, CAMP HILL, PA 17011 GARNISHEE(S) as follows: and to notify the garnishee(s) that: (a) an attachment has been issued; (b) the garnishee(s) is enjoined from paying any debt to or for the account of the defendant (s) and from delivering any property of the defendant (s) or otherwise disposing thereof; (3) If property of the defendant(s) not levied upon an subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify him/her that he/she has been added as a garnishee and is enjoined as above stated. Amount Due $67,831.59 Interest FROM JULY 2007 - $3,349.51 Atty's Comm L.L. $.50 Due Prothy $2.00 Atty Paid $171.62 Plaintiff Paid Date: JANUARY 17, 2008 (Seal) REQUESTING PARTY: Name JOHN H. PIETRZAK, ESQUIRE Address: 2331 MARKET STREET CAMP HILL, PA 17011 Attorney for: PLAINTIFF Telephone: 717-763-1383 Supreme Court ID No. Other Costs ATTORNEY'S FEES - $7,111.86 Curtis .Long, Proth ry By: Deputy DISTRIBUTION ATTY FOR PLTFF: John Pietrzak WRIT NO. 2007- 4722 Civil Brandy Investors, L.P. -vs- Calabrese & Sons, Inc., & Joseph Calabrese Real Debt $ 67,831.59 Interest 3349.51 Attorney's Comm. Writ Costs, Atty 171.62 Writ Costs, Pltff. Miscellaneous 7111.86 Attorneys Fees $ 78,464.58 Sheriff s Costs: Docketing $ 18.00 Poundage 1356.64 Posting Sale Bills Law Library .50 Prothonotary 2.00 Service 13.44 Postage Advertising Postpone Sale Bad Check Charge Surcharge 40.00 Garnishee 9.00 Levy 20.00 TOTAL $ 1459.58 Defendant Paid to Sheriff $ 79,924.16 Advance Costs 200.00 Total Collected $ 80,124.16 2604.68 DISTRIBUTION Pd. To Pltff. $ 78,464.58 Refund of Adv. Costs 200.00 Pd. To Prothonotary 2.50 R. Thomas Kline, Sheriff By