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HAROLD SWIDLER, Plaintiff V. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO a/k/a PATRICIA A. SARAGO, husband and wife, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO: 09 - 600 0,W-,J -fax* CIVIL ACTION - LAW NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you, and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 NOTICIA Le han demandado a usted en la corte. Si usted quiere defenderse de estas demandas expuestas en las paginas diguientes, usted tiene viente (20) dias de plazo al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o por abogado y archivar en la corte en forma escrita sus defensas o sus objeciones a las demandas en contra de su persona. Sea avidaso que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y por cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. LLEVE ESTA DEMANDA A UN ABOGADO IMMEDIATAMENTE. SI NO TIENE ABOGADO O SI NO TIENE EL DINERO SUFICIENTE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O LLAME POR TELEFONO A LA OFICINA CUYA DIRECCION SE ENCUENTRA ESCRITA ABAJOPARA AVERIGUAR DONDE SE PUEDE CONSEGUIR ASISTENCIA LEGAL. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 Telephone: (717) 249-3166 HAROLD SWIDLER, Plaintiff V. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO a/k/a PATRICIA A. SARAGO, husband and wife, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO: 4 9- 6" &?( -C? CIVIL ACTION - LAW COMPLAINT AND NOW COMES, Plaintiff, Harold Swidler ("Mr. Swidler"), by and through his attorneys, Cunningham & Chernicoff, P.C. and files the within Complaint and in support thereof state the following: 1. Plaintiff, Harold Swidler, is an adult individual who resides at 315 Washington Lane, Carlisle, Cumberland County, Pennsylvania 17013. 2. Defendants are Peter Kenneth Sarago a/k/a Peter K. Sarago and Patty Sarago a/k/a Patricia A. Sarago, husband and wife„ who reside at 303 Kay Road, Mechanicsburg, Cumberland County, Pennsylvania 17055. 3. Mr. Swidler is the owner of certain premises located in Cumberland County known as 876 Harrisburg Pike, North Middleton Township, Carlisle, Pennsylvania 17013 (the "Premises") which he rented to Defendants under a Commercial Lease (the "Lease") dated December 31, 2005, a true and correct copy of which is attached hereto as Exhibit "A" for the period January 1, 2006 through December 31, 2010. 4. Defendants paid rent to Plaintiff and other financial obligations under the Lease in 2006. However, Defendants' last (partial) rent payment to Plaintiff was made on January 12, 2008 (applied to overdue rend for October, 2007) and no rent payments have been made since that time. Additionally, Defendants have failed to pay 2007 real estate taxes as required under the Lease. As such, Defendants are in default of the Lease due to non-payment of monetary obligations thereunder. 5. Defendants left and abandoned the Premises on February 11, 2008, surrendering possession of the Premises to the Plaintiff. 6. On January 15, 2008, Plaintiff notified Defendants about the aforementioned monetary defaults under the Lease by certified mail. A true and correct copy of this default letter is attached as Exhibit "B" (the "January 15, 2008 Default Letter"). Defendants received the January 15, 2008 Default Letter as evidenced by the certified mail receipts, true and correct copies of which are attached hereto as Exhibit "C". 7. Defendants are also in violation of the Lease due to (1) their subleasing separate portions of the Premises to two (2) separate entities; and (2) their failure to maintain the Premises in accordance with the law and municipal ordinances resulting in citations issued by North Middleton Township against Plaintiff ("Citations"). True and correct copies of the Citations are attached as Exhibit "D" (collectively these two (2) defaults shall be referred to as the "Non-Monetary Defaults") 8. On February 5, 2008, Plaintiff notified Defendants about the Non-Monetary Defaults under the Lease by certified mail, a true and correct copy of which is attached hereto as Exhibit "E" (the "February 5, 2008 Default Letter") Defendants received the February 5, 2008 Default Letter as evidenced by the certified mail receipts, true and correct copies of which are attached hereto as Exhibit "F". 9. It is believed, and therefore averred, that Defendants have also failed to pay utility bills on the Premises under Paragraph 4 of the Lease and to maintain insurance on the Premises per Paragraph 8 of the Lease. 10. Defendants failed to cure, within ten (10) days of receipt of the February 5, 2008 Default Letter, the Non-Monetary Defaults and have failed to make any payments as required under the Lease since the January 15, 2008 Default Letter. 11. Plaintiff cured the Non-Monetary Defaults by terminating the aforementioned subleases and resolving the issues identified in the Citations for which Plaintiff paid filing fees, a sum total of $716.00 to resolve the Citations. 12. Plaintiff has terminated the Lease by letter dated March 4, 2008, a true and correct copy of which is attached hereto at Exhibit "G" (the "Termination Letter"). Defendants failed to claim the Termination Letter as evidenced by the envelopes which were returned, true and correct copies of which are attached hereto as Exhibit "H". Also on March 4, 2008, the same letters were sent to Defendants via regular mail to the same address and they did not return as undeliverable, evidencing receipt thereby. COUNT I - BREACH OF CONTRACT/LEASE 13. The averments of Paragraphs 1 through 12 are incorporated herein by reference as if more fully set forth herein. 14. Defendants have breached their Lease with Mr. Swidler as follows: a. By failing to pay rent in a timely fashion; b. By failing to pay real estate taxes at the Premises; C. By failing to pay utilities at the Premises; d. By subleasing portions of the Premises; e. By failing to maintain insurance on the Premises; and f. By failing to maintain the Premises in accordance with the applicable municipal ordinances. 15. Plaintiff has been damaged by Defendants' breach as set forth below. a. Past due Monthly Base Rent in the amount of- i. $315.40 for October, 2007 ii. $5,715.40 for November, 2007 iii. $5,715.40 for December, 2007 iv. $5,886.86 for January, 2008 V. $5,886.86 for February, 2008 vi. $5,886.86 for March, 2008 vii. $5,886.86 for April, 2008 viii. $5,886.86 for May, 2008 ix. $5,886.86 for June, 2008 X. $5,886.86 for July, 2008 xi. $5,886.86 for August, 2008 xii. $5,886.86 for September, 2008 xiii. $5,886.86 for October, 2008 xiv. $5,886.86 for November, 2008 xv. $5,886.86 for December, 2008 for a Total of $82,388.52. b. Overdue 2007 real estate taxes paid by Mr. Swidler in the amount of $6,608.61. C. Future Monthly Base Rent due under the Lease from January, 2009 through December, 2010, which totals $147,706.02. d. 2008 real estate taxes paid by Mr. Swidler which total 5,878.00. e. 2009 and 2010 real estate taxes in amounts yet to be determined. f. The cost of resolving the Citations, $716.00. g. Costs and attorney fees which at present are $4,000.00 plus ongoing costs and attorney fees. h. The cost of providing utilities to the Premises and insurance under the Lease through the expiration of the Term of the Lease(an amount which has not yet been determined);. 16. Plaintiff is also entitled to interest at 18% for all sums due and under the Lease. WHEREFORE, Plaintiff, Harold Swidler, demands Judgment in his favor against the Defendants, Peter Kenneth Sarago a/k/a Peter K. Sarago and Patty Sarago a/k/a Patricia A. Sarago are husband and wife, for damages as a result of the breach of contact currently calculated at $247,297.15, an amount which exceeds the limit of compulsory arbitration in Cumberland County, Pennsylvania plus costs under the Lease and at law, plus the costs of real estate taxes, utilities and insurance through the term of the Lease, plus ongoing interest, costs, attorney fees and other just relief that the Court deems appropriate. CUNNINGHAM & CHERNICOFF, P.C. J. W PA Identification 58799 2320 North Seco Street Harrisburg, PA 17110 Telephone: (717) 238-6570 Date: February 3, 2009 F:\Home\BJW\DOCS\SWIDLER.HAROLD\Sarago Big Ugly Warehouse\Complaint.013009.wpd 717 238 4809 02:41:13 p.m. 01-30-2009 212 VERIFICATION I, Harold Swidler, hereby verify that the statements made in the foregoing Complaint are true and correct to the best of my knowledge. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unworn falsification to authorities Date: El (? g f G Harold Swidler EXHIBIT `A' LEASE f" LEASE AGREEMENT dated as of this 3 J day of Cen+B1005, between Harold Swidler ("Landlord") and Peter Kenneth and Patty Sarago, Chris Sarago and Lori Sarago ("Tenant"), with an address Of 303 Kay Road, Mechanicsburg, Pennsylvania 17050, phone number 717-645-3134. For valuable consideration received and acknowledged by each party from the other, the parties, who intend to be legally bound hereby, agree with each other as follows: 1. Demised Premises. (a) Landlord hereby leases to Tenant, and Tenant leases and takes from Landlord, 876 Harrisburg Pike, North Middleton Twp., Cumberland County, Pennsylvania (the "Property"), except that portion which is reserved by Landlord as shown on the attached Exhibit A (the "Demised Premises"). The area shown outlined in red on Exhibit "A", located on the East side of the building situated on the Demised Premises is not included. The Demised Premises as it is specifically referenced by Landlord (the "Excepted Land"). However, so long as Landlord is not using the Excepted Land, Tenant may use the Excepted Land under a non-exclusive license, so long as Tenant specifically includes the Excepted Land under the Insurance Provision contained hereunder in Paragraph 8. The Demised Premises shall be used only for retail sale of merchandise considered within good taste and acceptable by community standards and for no other purposes. (b) Tenant accepts the Demised Premises "as is" and in their present physical condition, and with their present legally permitted uses; provided, however, that prior to the commencement of this Lease, Landlord shall have caused the repairs or the windows in, and shall have painted, the Demised Premises. (c) Tenant also agrees that if Landlord uses the Excepted Land for which Landlord must provide Tenant with thirty (30) days notice. Landlord shall also be permitted to use Tenant's ingress and egress to Harrisburg Pike under a name exclusive license and without cooperation therefor without restriction. 2. Term and Options. (a) The initial term of this Lease shall continence on January 1, 2006 (the "Commencement Date") and shall end on December 31, 2010 (the "Initial Term"). Tenant shall have one (1) five (5) year Option (the "Option Period") which shall automatically vest, unless Tenant notifies Landlord at least one hundred eighty (180) days before the Initial Term expires that Tenant does not want to exercise the right to keep the Demised Premises for the Option Period. In the Option Period, all terms and conditions of this Lease shall remain the same, as modified in Paragraph 3 (Rent) below. 3. Rent. (a) Tenant agrees to pay Landlord Base Rent for said Demised Premises in the sums specified in the Rent Table below ("Base Rent"). In addition to and together with Base Rent, Tenant shall pay to Landlord any sales or similar tax or levy imposed by the Commonwealth of Pennsylvania and any political subdivision thereof on all Rent and other payments due under this Lease from Tenant to Landlord. The term "Rent" as used in this Lease shall include Base Rent, Additional Rent and all other payments due from Tenant to Landlord pursuant to this Lease. All Rent is payable monthly in advance without set-offs or deductions of any kind, upon the first day of each calendar month of the Lease. Base Rent shall be due and payable on March 1, 2006 ("Rent Commencement Date"), but all other sums due Landlord under this Lease and all sums due and payable by Tenant directly for the Demised Premises shall be payable on the Commencement Date. In the event that the Commencement Date of this Lease is other than the first day of a month, Rent for such first partial month shall be prorated and paid on the signing of this Lease by Tenant. Auplicable Rent Table Lease Year Annual Base Rent Monthly Base Rent Year 1 Year 2 Years 3, 4 and 5 and in Option Period $67,240.00 $68,584.80 $5,603.33 $5,715.40 s 886 -86 The amount of the prior year Base Rent plus three percent (390). (b) Tenant agrees to pay Landlord all real estate taxes and Landlord's insurance premiums relating to the Property and as Additional Rent hereunder, to be paid monthly together with the payment of Base Rent, in an amount estimated by Landlord with appropriate adjustment and payment upon demand when such amounts are actually determined for the periods to which they are applicable. (c) Any payment of Rent hereunder which is not paid within ten (10) days of the due date shall bear interest at the rate of eighteen percent (18.0%) per annum until the date actually paid, but the collection of said interest shall not constitute a waiver by Landlord of its remedies hereunder for default of Lease on account of non-payment of Rent. 4. Conduct of Tenant's Operations. The Tenant covenants: that no waste or damage shall be committed upon or to the said Demised Premises or upon the Property by the Tenant or its agents, servants, employees, invitees or customers. Tenant shall not permit, allow or suffer to exist any liens upon the Demised Premises or the Property for labor or materials furnished. At the expiration of the term of this Lease or upon cancellation thereof, Tenant shall peacefully yield up to Landlord said Demised Premises in good order and repair and broom clean. Tenant shall affix or display no signs upon the Demised Premises or the Property without first having obtained the written approval of Landlord and all necessary permits and licenses therefor. Throughout the term hereof, Tenant, at Tenant's own cost and expense, shall: maintain and repair the roof and the structural elements of the Demised Premises; maintain the Demised Premises in a clean and sanitary condition; make all repairs to the Demised Premises as are necessary to preserve them in good order and condition, including, but not limited to, maintenance and repair of the interior walls, all doors and windows, wiring, plumbing pipes and fixtures, duct-work, any signs, and installation of the glass and electrical and lighting fixtures, which repairs and installations shall be equal in quality to the original work, or to such superior condition as to which the Demised Premises may be put during the term of this Lease, and which shall be performed only by persons or entities first approved in writing by the Landlord; promptly pay the expense of such repairs and installations; supply and install all lights and lighting to the extent replacement of existing lights and lighting shall be necessary to keep the Demised Premises adequately illuminated; give prompt notice to Landlord of any damage that may occur; maintain the heating, ventilating, plumbing and air-conditioning systems; and to execute and comply with all rules and orders of any Board of Fire Underwriters having jurisdiction over the Demised Premises. Tenant shall make no alteration to the Demised Premises or the Property without the prior written consent of Landlord, which consent may be withheld by Landlord for any reason in Landlord's sole discretion. Any alterations or improvements by Tenant to the Demised Premises shall become part of the Demised Premises; provided, however, that at Landlord's election, such alterations, other than those constituting Tenant's Work as described in Section 17 of this Lease, shall be removed and the Demised Premises restored to its original condition -at the sole cost and expense of Tenant upon termination of this Lease for any reason. Landlord's sole obligation with respect to maintenance or repair of the Demised Premises shall be for structure only, except to the extent that such maintenance and repair is necessitated by the negligence or willful acts of Tenant, in which event such maintenance and repair shall be the responsibility of Tenant at its sole cost and expense. Tenant shall pay all personal property taxes and excises assessed upon Tenant's goods and properties located at the Demised Premises before same shall become overdue. Tenant shall place in its name and pay for all utilities consumed by Tenant or rendered to the Demised Premises. 5. Conduct of Business. Tenant shall always conduct its business in a good and orderly manner, secure all necessary permits and licenses and comply with all present or future applicable laws, ordinances, by-laws, rules and regulations. The Demised Premises shall be used for only the purposes stated above, shall not be used for any unlawful purpose, and no violations of law, ordinance, by-law rule or regulation of any governmental authority shall be committed thereon. Tenant covenants and agrees that the business activities which it intends to conduct in the Demised Premises do not use any hazardous materials or substances. Tenant and its successors, assigns, subtenants, licensees, concessionaires and occupants and their agents, employees, contractors, and invitees, shall not, at any time during the term hereof cause or permit any hazardous materials or substances to be brought upon, stored, manufactured, blended, handled, or used in, on, or about the Demised Premises or the Property for any purpose. 6. No Assignment. Subletting or Encumbering Tenant shall not assign, sublet, mortgage or encumber this Lease or the Demised Premises or suffer or permit the Demised Premises or any part thereof to be used by any other person or entity, without on each occasion obtaining the prior written consent of Landlord, which Landlord may grant or withhold in its sole discretion. Should Landlord consent to an assignment or subletting pursuant hereto, Tenant shall nonetheless remain fully liable and responsible for the performance of each term or condition of this Lease. 7. Landlord Not Liable. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all actions, claims, demands, fines, liens, penalties, liabilities or costs (including attorneys' fees) incurred in connection with any loss, damage or injury to persons (including the Tenant, its agebts, servants, employees, customers or occupants), to property (including that of the Tenant), or on account of violations of laws, ordinances, by-laws, rules and regulations, any of which occur in, on or about the Demised Premises or the Property or in the operations or activities of Tenant and its agents, servants, employees, customers or occupants on or about any portion of the Demised Premises and the Property. Tenant agrees to be responsible for any damage to the property of Landlord which may result from any use of the Demised Premises or the Property, or any act done or omitted by the Tenant, its agents, servants or employees, or any person coming or being thereon and on the Property by the license or sufferance of the Tenant, express or implied. Landlord shall not be liable to Tenant if Landlord does not become the legal owner of the Demised Premises, for any reason whatsoever. 8. Insurance. During the Lease Term, Tenant, at its sole cost and expense, shall provide and keep in force: (a) commercial general liability insurance with the broad form endorsement, including, but not limited to, personal injury and contractual liability coverage of not less than $2,000,000.00 combined single limit for both bodily injury and property damage resulting from a single occurrence, occurring in and around the Demised Premises and any exterior signs maintained by Tenant, and automobile liability insurance with limits of not less than $2,000,000.00 combined single limit for both bodily injury and property damage resulting from one occurrence; (b) workmen's compensation insurance at legally required levels and employer's liability insurance at limits of not less than $500,000.00 per accident for the benefit of all employees entering upon the Demised Premises or the Property or any portion thereof as a result of or in connection with their employment by Tenant; (c) casualty and other insurance covering loss, injury and damage to Tenant's personal property and fixtures in or on the Demised Premises; and (d) at all times during which construction is being performed upon the Demised Premises by Tenant, "All Risk" builders risk-insurance with limits of coverage not less than 100% of full replacement cost of Tenant's leasehold improvements and Owner's and contractor's protective insurance and independent contractor's insurance with coverage of at least $2,000,000.00 for a single occuaence and for property damage. All said insurance shall be with such companies, and in such form, as are satisfactory to Landlord, and shall contain only such deductible amounts for each such coverage as have first been approved by Landlord in writing; Tenant shall in any event be responsible for all deductible amounts. Landlord and its mortgagees shall be designated as additional insures under all said insurance for the full amount thereof. Tenant shall furnish Landlord proof that Demised Premises are covered by Tenant's policy(ies) and that said policy(ies) shall not be terminated or fail to be renewed except on thirty (30) days prior written notice from the insurer to the Landlord. Replacement policies shall be provided to Landlord at least thirty (30) days prior to expiration of a previous policy. If Tenant shall use the Demised Premises prior to the term hereof, Tenant shall be liable as herein set forth and such occupancy shall be upon all the terms and conditions hereof and shall be by Tenant at its own risk. 9. Security. - Tenant shall deposit with Landlord, upon Tenant's execution of this Lease; the sum of $11,206.66, the first month's Base Rent ($5,603.33 for the period March 1, 2006 through March 31, 2006) and $5,603.33 as a security deposit, to be held by Landlord as collateral security fee for the payment of any and all money for which Tenant shall or may become liable to Landlord under this Lease. Landlord shall be entitled to retain such security deposit without obligation to pay interest thereon and to commingle said funds with other funds of Landlord. If Tenant shall be in default with respect to any covenant, duty or obligation of Tenant under this Lease, then such security deposit or any part thereof may be applied by Landlord (but Landlord shall not be obligated to do so) to the damages sustained by Landlord as a result of such default; no such application shall be deemed to limit the amount of Landlord's claim or as a waiver of any damage or release of any indebtedness, and any claim of Landlord not surrendered in full by any such application shall remain in full force and effect. After any such application by Landlord and immediately upon request by Landlord, Tenant shall pay to Landlord an amount equal to the sums so applied so that Landlord shall always be in possession of a sum equal to the original security deposit stated above. Upon termination of this Lease, the Tenant not being in default hereunder, the security deposit, or so much thereof as has not been applied by Landlord as provided herein, shall be returned to Tenant. In the event of conveyance or other transfer of the Demised Premises, Landlord's remittance of the security deposit or any remaining portion thereof to Landlord's transferee shall release and relieve Landlord of any further obligation or liability to Tenant with respect to the security deposit. 10. Default by Tenant. (a) A default hereunder shall occur if: (i) Tenant shall fail to pay any amount due Landlord on or before the date due; (ii) Tenant shall fail to perform or observe any other agreement or condition on its part to be performed or observed, and if Tenant shall fail to cure said failure within ten (10) days after written notice of said failure from Landlord; (iii) Tenant or any guarantor of this Lease shall suffer an attachment or levy upon execution against any of his or its real or personal property; (iv) Tenant or any guarantor of this Lease shall become insolvent or shall file bankruptcy or reorganization proceedings under federal or state law, or such proceedings are filed against Tenant or a guarantor of this Lease; (v) a receiver shall be appointed for Tenant or a guarantor of this Lease or any of his or its property; or (vi) Tenant or a guarantor of this Lease shall make an assignment for the benefit of his or its creditors. (b) Upon a default by Tenant under this Lease, Landlord may: (i) elect not to terminate this Lease or Tenant's right to possession of the Demised Premises, and enforce all of Landlord's rights and remedies under this Lease, including the right to recover the Rent as it becomes due and payable by Tenant. No acts by Landlord to maintain, preserve or re-let the Demised Premises, or to appoint a receiver to protect Landlord's interest under this Lease, or to remove property or store it at a public warehouse or elsewhere at the cost of and for the account of Tenant, or otherwise, shall constitute an election to terminate this Lease or Tenant's right of possession unless written notice of such intention is given by Landlord to Tenant. Landlord may elect to terminate this Lease upon a re- letting of the Demised Premises or at any other time after electing the remedy provided by this subsection, in which event the rent shall cease to accrue and the damages provided by subsection (ii) shall become available to Landlord. During the period Tenant is in default, Landlord may enter the Demised Premises and re-let them, or any part of them, to third parties for Tenant's account. Re-letting may be for a period shorter or longer than the remaining term of this Lease. Tenant shall pay to Landlord the Rent' due under this Lease on the dates the Rent is due, plus the amounts necessary to compensate Landlord as specified in subparagraphs (i) through (iii) below, less the Rent Landlord receives from any re-letting. If Landlord re-lets the Demised Premises for Tenant's account as provided in this subsection, Rent that Landlord receives from re-letting shall be applied to the payment of: (i) first, all costs incurred by Landlord for re- letting, such as (without limitation) repairs and refurnishing, broker's commissions, attorneys' fees and rent inducements: (ii) second, any indebtedness from.Tenant to Landlord other than Rent due from Tenant; and (iii) finally, Rent due and unpaid under this Lease. After deducting the payments referred to in this subsection, any sum remaining from the Rent Landlord receives from re-letting shall be held by Landlord and applied in payment of future Rent as Rent becomes due under this Lease. If, on the date Rent is due under this Lease, the Rent received from the re-letting and applied to Rent due is less than the Rent due on that date, Tenant shall pay to Landlord the remaining Rent due. (ii) Terminate this Lease and all rights of Tenant and any subtenants, licensees or concessionaires hereunder by giving written notice of such intention to terminate. In the event that Landlord shall elect to terminate this Lease as provided in this subsection, then Landlord may forthwith recover from Tenant: any Rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term, together with any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom, including Landlord's attorneys' fees. (c) Upon a default by Tenant under this Lease, Landlord may, but shall not be required to, cure such default at the sole cost and expense of Tenant, and the cost of such cure shall be payable to Landlord upon demand. 11. Removal of Tenant's Property. Upon the expiration, termination or cancellation of this Lease, if Tenant has failed to remove any property brought upon the Demised Premises or the Property by Tenant, then and in that event said property shall be deemed abandoned by Tenant and shall become the property of Landlord, or Landlord may notify Tenant to remove same at Tenant's own cost and expense, and upon failure of Tenant so to do Landlord may, in addition to any other remedies available to it: (a) sell the property at a public or private sale, on the Demised Premises or elsewhere (without thereby waiving any claim against Tenant for any deficiency in sums owing Landlord from Tenant over the proceeds of the sale), and after deducting any sums due to Landlord hereunder, hold any balance for the account of Tenant; or (b) remove said property as the duly authorized agent of Tenant, and store the same in the name and at the expense of Tenant. or those claiming through or under it under any usual or proper form of warehouse receipt, whether or not authorizing the sale of said property for nonpayment of storage charges, without in any way being liable for conversion or negligence by reason of the acts of Landlord or anyone claiming under it or by reason of the negligence of any person in caring for said property while in storage, and Tenant will pay to Landlord the costs of removal and storage, irrespective of the length of time of storage. 12. Notice. Notice from Tenant to Landlord shall be properly given if delivered by nationally recognized overnight courier service such as Federal Express or Express Mail to Landlord, as follows: 315 Washington Lane, Carlisle, Pennsylvania 17013 with a copy to Bruce J. Warshawsky, Esquire, Cunningham & Chemicoff, P.C., 2320 North Second Street, Harrisburg, Pennsylvania 17110. Notice from Landlord to Tenant shall be properly given if delivered by such nationally recognized overnight courier service or certified mail, return receipt requested to the Tenant at the Demised Premises. 13. Tenant's Claims Against Landlord. Notwithstanding anything to the contrary in this Lease, any judgment or award obtained by Tenant against Landlord shall be satisfied only out of Landlord's interest in the Property and the monies receivable by Landlord therefrom. Neither Landlord nor any of its general or limited partners, officers, directors, shareholders, beneficiaries or employees shall have any personal liability for any matter in connection with this Lease or its obligations as Landlord of the Demised Premises or owner of the Property. Tenant shall not institute, seek or enforce any personal or deficiency judgment or award against Landlord or any of its general or limited partners, officers, directors, shareholders, beneficiaries or employees, and none of their personal or real property except for the Property shall be available to satisfy any judgment hereunder. In no event shall Landlord be required to pay a sum of money greater than the value of its equity in the Property in order to satisfy any judgment or order against Landlord arising from litigation or arbitration. In the event of any sale or transfer of the Demised Premises or the Property, the seller, transferor or assignor shall be and hereby is entirely freed and relieved of all agreements, covenants and obligations of Landlord thereafter to be performed, and it shall be deemed and construed without further agreement between the parties or their successors in interest or between the parties-and the purchaser, transferee or assignee in any such sale, transfer or assignment that such purchaser, transferee or assignee has assumed and agreed to carry out any and all agreements, covenants and obligations of Landlord hereunder. 14. Subordination; Certificates. This Lease shall always be subordinate to any mortgage or mortgage deed of trust which is now or hereafter a lien or encumbrance against the Demised Premises or the Property, without the necessity of any further act or instrument on the part of the Tenant. Notwithstanding, the Tenant agrees that within seven (7) days of a written request by Landlord, Tenant will deliver to the Landlord or any prospective mortgagee or purchaser a written and acknowledged statement (i) that this Lease is valid, subsisting, in full force and effect and unmodified (or, if modified, that the Lease as modified is valid, subsisting and in full force and effect and stating with specificity all modifications); (ii) the dates to which the rent and other charges have been paid; (iii) the Lease term; (iv) that all conditions to Tenant's possession of the Demised Premises and commencement of the Lease Tenn have been satisfied, if accurate, and if not, stating those conditions which have not been satisfied; (v) that neither party is in default under any provisions of this Lease, if accurate, and if not, stating any defaults; (vi) that there are no offsets-or defenses which either party has against the other (or if there are any offsets or defenses then claimed, stating the nature of same with specificity); and (vii) such other information as may. be reasonably requested. It is intended that any such statement delivered pursuant to this Section may be relied upon by the parties for whom it is intended. 15. Brokers. Tenant represents and warrants that it has dealt with no broker, agent or finder on account of this Lease. Tenant agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages and costs, including attorneys' fees, in connection with any claim for brokerage, finder's or similar fees, or compensation related to this Lease, which may be made or alleged as a result of acts or agreements of the Tenant with a person or entity other than the one specified in this paragraph. 16. Casualty: Eminent Domain; In the event that the Demised Premises or the building containing the Demised Premises are, wholly or in part, damaged by fire or other casualty, taken by eminent domain, or sold to a public authority in lieu of being taken by eminent domain, then Landlord may terminate this Lease on thirty (30) days written notice to Tenant. If this Lease is terminated under the preceding sentence, neither Landlord nor Tenant shall be obligated to repair, restore or reconstruct the Demised Premises. If this Lease shall not be terminated as provided above, this Lease shall continue in full force and effect, and Landlord shall, within thirty (30) days after receipt of casualty insurance proceeds or an eminent domain award (as the case may be), and solely to the extent thereof (after deducting Landlord's costs and attorneys' fees of collecting the said insurance proceeds or said award) , proceed with the repair or restoration of the Demised Premises and the building containing the Demised Premises and return the Demised Premises and the building containing the Demised Premises to substantially the same condition they were immediately preceding the damage or destruction. If any of the Demised Premises shall be rendered unusable on account of such casualty damage or taking, Rent shall be abated for the portion of the Demised Premises rendered unusable until the same are again usable by Tenant. Upon Landlord's substantial completion of restoration of the Demised Premises, Tenant shall promptly repair or replace all of its personalty damaged or destroyed, including, but not limited to, its trade fixtures and furniture. 17. Tenant's Work and Sign. Notwithstanding any other provisions of this Lease to the contrary, Tenant shall perform at Tenant's sole cost and expense upon and to the Demised Premises, the following work: install Tenant's retail fixtures and sign, as approved in writing by Landlord (hereinafter collectively referred to as the "Tenant's Work") . All materials comprising the Tenant's Work shall be new and of first class quality. All Tenant's Work shall be performed in a good and workmanlike manner, shall not adversely affect the structural integrity of the improvements of the Property and shall be and remain in full compliance with all applicable federal, state and local laws, ordinances, by-laws, rules and regulations and in strict conformity to the plans and specifications provided to Landlord. Prior to commencing Tenant's Work, Tenant shall deliver to Landlord copies of applications and permits certified by Tenant to be true, complete and correct, and copies of construction plans, if any. 18. Interpretation of AereemenL The agreements, terms, covenants and conditions herein shall be governed and interpreted by the laws of the Commonwealth of Pennsylvania. Nothing contained in this Lease shall be deemed or construed as creating a partnership or joint venture between Landlord and Tenant. Although this Lease shall bind and inure to the benefit of Landlord, Tenant and their respective heirs, personal representatives, successors and permitted assigns, this section shall not constitute a permission or authorization by Landlord to Tenant to assign or in any way transfer its interest in this Lease. Tenant hereby acknowledges that except as and to the extent specifically provided for in this Lease, neither Landlord nor any of its agents, representatives or employees, have made any representations, warranties, agreements or promises, and none shall be implied by law: Landlord may freely assign this Lease. This Lease is intended by the parties to be a final expression and a complete and exclusive statement of the agreement of the parties regarding the subject matter hereof, and all negotiations between the parties are merged herein. Except as expressly provided herein, this Lease cannot be changed, modified or terminated orally, but may be amended only by an instrument in writing executed by the party against whom enforcement of any waiver, change, modification or discharge is sought. Time shall be of the essence hereunder. The delivery of an unsigned copy of this Lease to Tenant shall not constitute an offer to lease the Demised Premises or grant any rights to Tenant as a result thereof. This Lease shall not be binding on Landlord or Tenant until executed by Landlord and Tenant kid delivered. The parties agree that this Lease should not be construed against one or the other based upon which party prepared or drafted the Lease. . IN WITNESS WHEREOF, this Lease Agreement has been duly executed by the parties hereto under seal as of the date written above. LANDLORD:, arold Swi er TEN Peter Kenneth Sarago s Patty SaAgo (J lr 'o 'kris cam-. Lori S go F:WOMEWJWIDOCSIHSWIDLERUXME976.1YPD EXHIBIT `B' JORDAN D. CUNNINGHAM CUNNINGHAM & CHERNICOFF, P.C. ROBERT E. CHERNICOFF MARC W. wrrztG ATTORNEYS AT LAW BRUCE J. wARSHAWSKY P.O. BOX 60457 KELLY M. KNIGHT TRACY L. UPDIKE HARRISBURG, PENNSYLVANIA 17106-0457 TELEPHONE (717) 238-6570 FAX (717) 238-4809 January 15, 2008 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED and REGULAR MAIL Mr. Peter Kenneth Sarago 876 Harrisburg Pike Carlisle, PA 17013 Mr. Chris Sarago 876 Harrisburg Pike Carlisle, PA 17013 Ms. Patty Sarago 876 Harrisburg Pike Carlisle, PA 17013 Ms Lori Sarago 876 Harrisburg Pike Carlisle, PA 17013 RE: 876 Harrisburg Pike, Carlisle, PA 17013 Lease Dispute File No: 613205 Dear Messrs. and Mses. Sarago: HERSHEY TELEPHONE (717) 534-2833 IRS NO. 23-2274135 Street Address: 2320 N. 2nd Street Harrisburg, PA 17110 Writer's Direct Email: biw©cclawoc.cmm Please be advised that our office represents Harold Swidler, the Landlord of the Premises located at 876 Harrisburg Pike, North Middleton Township, Cumberland County, Carlisle, PA 17013 (the "Property"), under that certain Lease dated December 31, 2005 by and between Harold Swidler as Landlord and you as Tenant (the "Lease"). You are currently in default under the Lease for failure to pay the sum of $2,115.40 in Monthly Base Rent for October, 2007. You are also in default for failing to pay the Monthly Base Rent of $5,715.40 for the months of November, 2007 and December, 2007. This letter was authored before your S 1,800.00 payment made on or about January 12, 2008, which is acknowledged and which shall be applied to the total amount due on Page 3 of this letter. CUNNINGHAM do CHERNICOFF, P.C. ATTORNEYS AT LAW Mr. Peter Kenneth Sarago Ms. Patty Sarago Mr. Chris Sarago Ms. Lori Sarago January 15, 2008 Page 2 The Monthly Base Rent for the calendar year 2008 is $5,886.86, based upon a 3% increase over the Monthly Base Rent in effect in the calendar year, 2007. You have failed to make any payments towards the January, 2008 Monthly Base Rent, thus, are also in default of the Lease for this reason as well. As you know, rent is due monthly in advance on the first (") day of each month. You are also in default under the Lease in that you have failed to pay all real estate taxes for 2007 relating to the Property, consisting of the 2007 county/township tax and the 2007 school tax, both of which are now beyond the penalty period. Copies of the aforementioned tax bills are attached to this correspondence. Additional costs have also been levied by the Cumberland County Tax Claim Bureau due to your failure to pay either tax bill before December 31, 2007. Additionally, all of the sums due and owing set forth above bear interest at a rate of 18% per annum pursuant to Paragraph 3(c) of the Lease. Pursuant to Paragraph 10 of the Lease, you have ten (10) days to cure the above- mentioned defaults. Specifically, you must pay, prior to February 1, 2008, the outstanding 2007 real estate taxes in their entirety, plus penalties and other charges imposed by the Cumberland County Tax Claim Bureau in the total amount of X476.36, as set forth in the attached statement and/or any other taxing authority. You must also pay, prior to February 1, 2008, the following: I . $2,242.32 for the outstanding Monthly Base Rent plus interest for October, 2007; 2. $5,972.59 for the outstanding Monthly Base Rent plus interest for November, 2007; 3. $5,886.86 for the outstanding Monthly Base Rent plus interest for December, 2007; CUNNINGHAM & CHERNICOFF, P.C. ATTORNEYS AT LAW Mr. Peter Kenneth Sarago Ms. Patty Sarago Mr. Chris Sarago Ms. Lori Sarago January 15, 2008 Page 3 4. $5,975.16 for the outstanding Monthly Base Rent plus interest for January, 2008; and 5. $5,886.86 for the Monthly Base Rent will come due for February, 2008. The total of the Monthly Base Rent due plus interest is $20.076.93. Your failure to pay the above-referenced sum and all outstanding taxes for the Property, and thus, curing all defaults, will leave Mr. Swidler with no alternative but to terminate the Lease and file suit for all Rent due and owing through the end of the term of the Lease, December 31, 2010. Please be guided accordingly. Very truly yours, C INGHAM & CHERNICOFF, P.C. Bruce J. W wslry BJW/ja Attachment cc Harold Swidler F:\H0m4 B1WX0CS1HSWMU9t it76 Hmiibivl Piks1L011401.wpd EXHIBIT `C' f J 0 1 1 a e g fill ,fill C Q? ? M 0°•' 0 0 0 a w O m x t G O° _ fit G D Zz g Ln 1 u ' o f -? : -a?o m go ?o ru 0 F F 1 E ti Ln $ 0 C Wad Fie C3 JA At °o t?naorPakxn a.?cra.?,treF C3 y (EedowMa?at 0 raw Powo. a Fees $ ?o I%. r :------ O Qr r4 ru ti ti Ln ..- C3 0 coo" Fee o° ? +a I" No O = PA O Tow ftsuge a Fees -a ° o ° N ?6:+?:idi7vdl'--11 r x i a 0 t i i? E ?I m rI N -A rO C 0, 1-' IL 7 rU Ln Q COMW Fee C3 . ROM Fee Q C ? YRe4iied) Q TOW POSM98 d Feet ..0 C3 o a,? Q ru ti OFF ru Ln Q CWINW Fn (Er4W nW*R* Wk" Q (8xlm .wdR6*" r-I O TOW Pwfape 3 Fen . Q Q rr. EXHIBIT `D' •YV V7 VVVV ?a.VV V....\• • • COMMONWEALTH OF PEW46YLVANIA cmm v np• C 09-2-01 IOdrOme rrm PAU= we C OM M" ^"mm 2260 MF2M RD I>1Dtz'i #3 c?ultsas, PA Tdwwwe (717) 210-3250 17013-0000 f i r arc uu;so FOR 4MCME OOMWNWMTH OF PENNSYLVAW oe;M?rDANT: vs. rte, 2?? _ wows 315 SMAZ?TOW Ilan CXUJMN, !a 17013 r.Uid 1 2. /If?.>Q L J 315 1 =00ll+Ot L0? DodM No.: *1-0000006-00 Ci2i. WAv YA 17013 Oe1B Fpm 1/03/08 s. 9230 993A or 4/ Ot PEOPERTY ME AND . & :Sass 1? ?,' cm WffM TEN OM DAYS CF FAME" OF'nW SUTA WM YOU *W-. 1. PLEAD NOr GULTY by --- h n IMY m I - lmo abww IR In 0 an amask a" b flw 1" dui apacMbd abowl. or M fda -- Leak ae not apaoBsd, M"O M sun d as Go"" br your appaanrwo at Viet OR. 2. PLEAD PIOrr GUILTY babe fM nrsplMtrlal dMibt JrrdSa abew and pue tp auoh c r Iltlorat br your appsaranoa m ilm rldrM,lct ?rdpa d 0% 9. K you camel Load b Ps?1u lmI4us apsoblsd aW L, or fS SM00 - -, -m al. !pu nut now babe fAa mmoblo d dMI M Judpa above 1b anI a plea; ofA 4. PLEAD GUILTY by nollyMfo b O ?iidpa -bow ki w M IIN' 0 ? 1 F I PIN 60W. and brwMdkV on ?rlydwlctII? amount sgwl b the due abewle fi. PLEAD GMTY by apv 1 9 babes IM m elrkrt? dtrtrbt Axle above f fire tort due It not cps mills cl w- You ARE Fam GUM.TY BY THE MAti1STERwAL owwwriwaE AND vmm To APPFAI. YOU HAVE THIRTY (m DAYS To REQUEST A TRIAL DE NOVO IN THE COURT OF COMMON MM M All CHECK& OR MONEY ORDERB FOR FINE. COST& FEES. OR FOR COLLATERAL. SHALL BE MADE PAYABLETO 'MAGISTERIALONTRICTNO. 09-2-01 'D6MIEDABOVE ANDSNITTOTHEAODREBSABOvF- IF YOU FAIL TO RESPOND TO THIS SUMJOMS WM41N THE TRAE SPEORED ABOVE. A WARRANT FOR YOUR ASST SHALL BE ISSUER. _. B ,slt.o- 0°P°. !0 aN? m0 ql?, t..?77- _....,. at D? Court,it3?h?iroN fMtl?oR1oMplwno nuln m. We m unobN b pI&d* 1n?tBpor1000L IF YOU 91TEND TO BOND BY MAIL: --- •- Detach and ooaip1sm the bum porion of fhb suaaiorrs wills your ftmam an ft approprtak pba ba1(1) or M. of you PLEAD NOT GUILTY. your ales ' a nronsy adsr mist bo h MIa mwuit d 1M fold due gxdkd above. B $W bW dun knot gwcnv4 yov drank a sw W oM w4 M ba lnflea amount d MM= Mbioh w• ba hM br coralnal br your aRpaaenos at biaL Yau wr bs radbd•by m M d yaw dmb and Bins br ti@L II you PLEAD GULTY. Nw b - s cImM or drdsr Infleaanoint d #w : '.. . ;.''amount d to 11TH, cook and fiat YA rm* b lw iiwsrrot d a woomd br )ou? araaL- Ya chadc or morr wdsr dtlM ?! ?iadR' • • S ,.f palrtbia b fl» 'Msplt o ON, hi Na' abora. , 9 ph?i.? r .... I? ?'• KL w1Y ry: How- M "Y?r . w.•wr.. ?. -? y. ,..{,. ?y ,f,?,v : I?K I Ownlim ^Y .III?{''N.?11? YIA a? I?t?in? fr??1wMA a w an r+ •iFl l•"' i . S .alb bW due sped4ed P? • oft O (F r piM n0 1 + { abew wMl rnta In a a ft1i11 pre tMtrq .; .. ? i r '•? ' ? }+. 1. I PLEAD NOT GUILTY. Docket No.: 1?-OO??pi=0a I n. CA r% f-11 Ill Tv rirarinn Nn . IPS328690-3 VOL? WIN rvvo AA 2,2 v.i.n. fit *to !'. U%1 i, ON T??C PPNMAMA MN ' ?...OftMAM , 05328690 .3 sir.:; :3 I'7 PA ?.?j. ,Y??•3J•.Y, i4 ,n y• t?Y?? t 3{ Y DO O s C ?.r• ?• r ?r ' O Cllfirfl?MY( P"r ?`? NwMrRQY??hM?rlwltirri?rlMtn??!ww?? ?- s s crru a??Fi>dL Fart ,eb.. ardwr .lr?t 7-w1W .rAi /1101PTiN ?:, qrb oN of _ taoo 40 VP Iwo S i A?-j? LAW • :? Arol 7AQ VAAin j. ' • ... , ?i./7?? .w .ter w .y, .,? 4? ?r ? .? r ? SyPI ,T ? ??S us PIR .. WNW a. IF NO FINE LISM, CarACT DI -MGISMBATL FOR MWWIr DISTRICT •uAf zsmTE 'S TEL. i?(? 17i 21 S-SY50 l° 8 90-3 ICrD-Vr-4VV0 1J • ITV V. l •A• . COMMONWEALTH OF.PEMMMVANIA---- ift :os-2-o1 wig tt.. . . sa?o=s ?.:oo't?saz "'""'? .3Zi0 • ilMZSO N? • 10?=i 03 !a > re (717) 21tl=42s0 17oi3-0 00 Kalbbw 3?isvro to 17013 076 - sis FVW AND.000Tij RM&- f 1 1 *(o 4040 r. ua FORA CCASE COMMONMrEAUM OF PENNSYLVANIA =. wiiwE.?e was rye, iWWW s Its = 1-w rim tats ' 7a 17032 L DWW WU W-0000010-00 clot. Fts& 1/03/00 o 1OTHER: M WMMWfN I.'IWv .OF THIS SUMMONS YOU WJST: - 1. PLEAD NO'1'?TY br nOryflO ? ?W d?tlC! j??dpa abOra M wrlbp afld brw?? an anl0u?t p14 b ?M to1M dIN sFtso*sd above. of b bus oosb ant not spscMsd. lforwaid the sum d X UW r aolwWW br vow wPmw%w- aim* OR. KMWTQ&Tyw 2 n l a w dlMmow aa/ n, ap.? ?OMbrW dMrtct pdpo above and postlno auah ooMalMS1 for your appaanr?ca as 1h• E• tAas afA b p ba b1Y doh sps n0 above orthe S5&00 aoaind. you moat appear bafe ft mapfslMtal,dNbtat ludpa ID- pon; 4. PLEADAXTY bV.noM lfts datiot+d0?sbovsUwdtq;sWtpOta app` -F I N 0w bsbw,and %MUdnp an amounta4rbwa lplyi dos spiodrsd Wabm 0% 5PLEAD GUIM.TY• by appirirq 4sfara ? anplslnW dMdot ludps above d ttr tafd dos Is not ppaoNsd. W YM ARE POURO OATY BY THE MAGNTEWAL DISTWCT.IUDOE AND WISH TO APPEJII., YOU HAVE TH FOY (M DAYS TO RIMEST A TRIAL DE NOVA N THE COURT OF COWAON PLEAS. ALL CHECKS OR MOW ORDERS FOR FNE COWS, FEW OR FOR COLLATERAL. SHALL BE MADE PAYABLE TO •MAGIVrEFIUL DM' DW I NOL 09-2-01 ' IDBwMow ABOVE AND 9of T TO THE ADDRESS ABOVE r YOU FAM. TO FMW OPD TO THW BUAAIMONS WHIN THE TWA SPWRED ABOVE. A WARRANT FOR YOUR AFMBT. SMALL BE NN UAD. Blw d tAtfld? a• 1BiBO11MbIB BOIAOIIMIIOdMbfl t0 ??-a?BBB?? '* . ? i?? . twurTi . try 1111f11?iE. Mhl fAl? 1BIrFIB b OrORIId? W-: YOU WTM TO .INQND.8V UANU OsE1ph swam*" M"bm po*n bf ft s o m m alb your sNnabn an IN appioprtsb ON ? (t) or tBl. d yvu PLEAD Wr d M,TY. YGW dlt.sl' ar mousy asdsr nwrt bs l0 #Wamount dthe lW dw spsarfad abouaa v tha total dt» Y aot apse?d, sort ahsolc aiptpnsFr atdir wwt bs in Ms mawN d "M wAdd wr bs IWd br oo al br yar appsatattoa at 1ttaL Yeu w/ be nor M W mr d your d? wid tins for few, M ]?oa PLEAD OUETY, snotoM • dnatc a atipns?r aufar h the anwu?M d lts tolU dos spsdhd above. R4aiw b runt tha jU$ , • r antaiwtd llta tits` aos1A'and tlws w/ maul ti tits lwuattos d a wrrant for your amat Your ditadt ar mousy attar shM brmpp PtffmltFt tilA>r'A??blrrl OMrtot Na• abwa . M PLEA ft WW b =. (F@h t b irtdlali a pin.~ *W&WdMp an.ariwn?. :. to ??dw above MiB In on peft 1, .4 I PLEAD NOT GULTY. Docket'Nor.: 21-200HIiA=osr- ,. 10 1 Of cwn nl In TV /'3tottnn tun • 15320701-1 I !'zb-U4-Auuu 11:4U U.I.X. 717 975 9835 P.05 i OrN i r / -y- i 'Pla TOTAL P.05 r EXHIBIT `E' JORDAN D. CUNNINGHAM ROBERT E. CHERNICOFF MARC W. WIMMG BRUCE J. WARSHAWSKY KELLY M. KNIGHT TRACY L. UPDIKE CUNNINGHAM & CHERNICOFF, P.C. ATTORNEYS AT LAW P.O. BOX 60457 HARRISBURG, PENNSYLVANIA 17106-0457 TELEPHONE (717) 238-6570 FAX (717) 23&4809 HERSHEY TELEPHONE (717) 534.2&33 IRS NO. 23-2274135 Street Address: 2320 N. 2nd Street Harrisburg PA 17110 Writfr's Direct Email: biwGbcclawac.com February 5, 2008 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED and REGULAR MAIL Mr. Peter Kenneth Sarago 876 Harrisburg Pike Carlisle, PA 17013 Mr. Chris Sarago 876 Harrisburg Pike Carlisle, PA 17013 Ms. Patty Sarago 876 Harrisburg Pike Carlisle, PA 17013 Ms Lori Sarago 876 Harrisburg Pike Carlisle, PA 17013 RE: 876 Harrisburg Pike, Carlisle, PA 17013 Lease Dispute File No: 613205 Dear Messrs. and Mses. Sarago: You have failed to respond, in any way, to my letter to you dated January 15, 2008, another copy of which is enclosed. As you are aware, our office represents Harold Swidler ("Mr. Swidler"), the Landlord of the Premises located at 876 Harrisburg Pike, North Middleton Township, Cumberland County, Carlisle, PA 17013 (the "Property"), under that certain Lease dated December 31, 2005 by and between Harold Swidler as Landlord and you as Tenant (the "Lease"). In addition to the Defaults identified in my January 15, 2008 correspondence (for which you had no grace period to cure the non-payment and for which you had ten (10) days to cure the non-monetary defaults), you are also currently in default under the Lease for the following non- monetary defaults for which you have ten (10) days from the date of this letter to cure, pursuant to Paragraph 10 of the Lease, as follows: 1. Enforcement proceedings have been filed against Mr. Swidler by North Middleton Township, as evidenced by the attached documentation due to your violation of Ms. Patty Sarago Mr. Chris Sarago Ms. Lori Sarago February 4, 2008 Page 2 Mr. Peter Kenneth Sarago CUNNINGHAM de CHERNICOFF, P.C. ATTORNEYS AT LAW two (2) municipal ordinances, in violation of Paragraph 5 of the Lease. Mr. Swidler has entered pleas of NOT GUILTY to each charge and we expect a Hearing to be scheduled in the near future. We are also initiating contact with North Middleton Township to determine what must be done to avoid future prosecution under the ordinances and to remedy the alleged violations. 2. You have subleased the Property (the "Subleases'), in violation of Paragraph 6 of the Lease without Landlord's consent to two (2) parties, Ken Morrow and an unnamed party, who are physically located at the Property and who are both copied on this letter and served by hand delivery (and who are, by copy of this letter, hereby advised to make ALL payments under their respective Subleases to Harold Swidler, in care of the undersigned'). You must provide copies of both Subleases immediately for our review. Your failure to pay the sums due and owing herein and those identified in my January 15, 2008 correspondence, including all outstanding taxes for the Property and clearing the municipal issues, and thus, curing all defaults, as well as assigning the Subleases and all payments thereunder will leave Mr. Swidler with no alternative but to terminate the Lease, remove you and your Sublessees from the Property and file suit for all Rent due and owing through the end of the term of the Lease, December 31, 2010. Please be guided accordingly. BJW/ja Enclosure cc Harold Swidler Ken Morrow Unnamed Sublessee FAHomeWW\D0CSIHSWUX.ER%76 Hwwisbwg Pike1L020508.wpd Very truly yours, C GHAM & CHERNICOFF, P.C. Bruce J. Wars wsky Mr. Swidler will neither recognize the Subleases nor be presumed to be a Landlord to any Sublessee until Mr. Swidler consents to the Subleases and the Sublessees agree to be bound by the terms and conditions of the Lease (a copy of which is attached hereto), except for the monetary payment provisions which shall be governed by the terms of the applicable Sublease. EXHIBITT' 1 N I i3 E 0 O cr O O 0 0 0 0 I? Y I ni u W cr w 0 L" E 0 0 c' C3 r L7 0 0 0 0 cn fU FL .A cr w r Fv N f? m .A ti OFF ti 'n - - 0 CWMW FN C3 00 ._ Fitton Fi?F« 13 0 row .o. d Foo 0 0 r- M--766i 1J ? ? s lxcdjl ? c cakr 11 --Js 0 0 q^? ? o ? ! ? ? 0 E3 lit ?g C Y 0.3 t=; L' Y J ? O q q 13141 pill , ? n, ni m 0- ti ti Ln S O O 0 0 0 rji 0 0 C3 M1 r ?f r0 m M nJ ti m O 0 0 0 0 0 _o ° 0 r- d a N LL T ul 2 N LL. M n- m ti m .0 rul OFFICIAL USE U l a / D'a 0 C O ?Rftm p I cEnd nta Re**" , 1-1 ° Total Postage a Fees $ °o TO c1 aPlOBaxfV, ..0 m m A ti OFFICIAL USA ti Ln $ 0 Cerdw Fee 13 C3 oWkbd DoNvoy Fee 0 (Eirlo mmnt f{ook a .4- O Total Postage 3 Fese $ ! ?!? .A ° SON To" ?i ° ------ 36w4 Apr th L orPOBaxNo. EXHIBIT `G' JORDAN D. CUNNINGHAM CUNNINGHAM & CHERNICOFF, P.C. ROBERT E. CHERNICOFF MARC W. WITZIG ATTORNEYS AT LAW BRUCE J. WARSHAWSKY P.O. BOX 60457 KELLY M. KNIGHT HARRISBURG, PENNSYLVANIA 17106-0457 TRACY L. UPDIKE TELEPHONE (717) 238-6570 FAX (717) 238-4809 March 4, 2008 VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED and REGULAR MAIL Mr. Peter Kenneth Sarago 876 Harrisburg Pike Carlisle, PA 17013 and 303 Kay Road Mechanicsburg, PA 17050 Mr. Chris Sarago 876 Harrisburg Pike Carlisle, PA 17013 and 1418 Red Hill Road Dauphin, PA 17018 Ms. Patty Sarago 876 Harrisburg Pike Carlisle, PA 17013 and 303 Kay Road Mechanicsburg, PA 17050 Ms Lori Sarago 876 Harrisburg Pike Carlisle, PA 17013 and 1418 Red Hill Road Dauphin, PA 17018 RE: 876 Harrisburg Pike, Carlisle, PA 17013 Lease Dispute File No: 601608 Dear Messrs. and Mses. Sarago: HERSHEY TELEPHONE (717) 534-2833 IRS NO. 23-2274135 Street Address: 2320 N. 2nd Street Harrisburg, PA 17110 Writer's Direct Email: Mwaxclawoc.com Please be advised that our office represents Harold Swidler ("Mr. Swidler"), the Landlord of the Premises located at 876 Harrisburg Pike, North Middleton Township, Cumberland County, Carlisle, PA 17013 (the "Property"), under that certain Lease dated December 31, 2005 by and between Harold Swidler as Landlord and you as Tenant (the "Lease"). CUNNINGHAM & CHERNICOFF, P.C. ATTORNEYS AT LAW Mr. Peter Kenneth Sarago Ms. Patty Sarago Mr. Chris Sarago Ms. Lori Sarago March 4, 2008 Page 2 You are currently in default under the Lease for failure to pay sums due and owing in Monthly Base Rent and real estate taxes, as specifically identified in my January 15, 2008 letter! You are also in default as identified in my February 5, 2008 letter, which defaults remain uncured. As a result, please be advised that pursuant to 10(b) (ii) of the Lease, Mr. Swidler elects to terminate the Lease. Please be guided accordingly. Very truly yours, C GHAM & CHERNICOFF, P.C. -011.4 Bruce J. War awsky BJW/ja cc Harold Swidler F:\Home\B1W\DOCSIHSWIDLER\Swago Big Ugly Warehouse\L030309.wpd Your non-payment default is ongoing as no payments haven been made since January 12, 2008. EXHIBIT `H' a4 y' a w O in m z d x H _ ? ' ? - w m c = = mar= S - O ?po - p i z m a - _ µ _ ao V im MCC rzm µ p p c - V mnz _• 1 -4 H m = OHO k ?tR?IN r ?' ?p Z- 0 00 Z rD 0 oil 0 - O W w U u a ? - u o , _ o n m x a L77 C) a x M O o 4 Z r a O o ?zi ? n -%J O M r o' O C3 Lv w w W Lr Ln Lune nN hJ D *+?4R4rtart N .I' v7 Ln m m m a • C3 CwgbdPw 0 rI do G -0 0 0 N x a C) a x ? O 0 4 ?z7. Ofd' n y.x r T, a n v O 0 b n w : o \ \ N G d O cr 0 k-A O ID z O _....._.?r ° n . N x o ru y. r• = w .?,..?.,a _ O o w, - u n -4 -4 o o- ... .?.? w -I MCC ?' ° '? - w u _ y rz;o moz w - = .= r ONO - Imp ;c 0 000 r - - Rl U Q ? r f :,\ L - -4 _ O Q Ti A ?.n r. i --y a • m so m Ln m m m m A ti 0 0 O C2 A 0 -0 G O N • x a o 9 MO zo (n x?n r > x z t n V Q O h+ ? +y.e. ::Gl dil ow g (,A cn C3 0 - 0 a, C C? a O ? O n rv - X W oo Q' ?n¦e y = w o o C ao vim- - Ln o a z A D -1 N ti 0 ao ao = u, ru v MCC r? ° '0 0 a Fla - I moz r is _ ONO µ Z; _ 0 oam D \ n .' - ? '. O ? 7C -- I ,? t4 _ O O C 10 O ?V • m ti Ln u, Ln m M M A c caw,l4r 0 C2 -IN " re go O Tdw fbNp? s .A O M1 ? w A H • X ? i 0 D 4 Z m d MCC w a rzx V mnz r a AD-4 m ONO F+ 0 SOY M X a O D 0 P a A O i I ? n m a z? o '0 0 =_ 00 a. _ r'? a? /W 1 r x a z ? a x ? O o > 00* A c >; a n ? p 0 b rn G C3 a - k-A C3 O C3 -- C3 ru c' w W Ln L Ir -? -i C7 ? 7, •-?1 J p • m u s»w44?F* ir m m m Pomp ru a 0 r1l ph C3 fms, c r- Sty Di VY SHERIFF'S RETURN - NOT SERVED CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL R. Thomas Kline , Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT , to wit: SARAGO PETER KENNETH A/K/A PETER K. SARAGO but was unable to locate Him in his bailiwick. He therefore returns the COMPLAINT & NOTICE NOT SERVED , as to the within named DEFENDANT , SARAGO PETER KENNETH A/K/A PETER K. SARAGO 303 KAY ROAD MECHANICSBURG, PA 17055 DEFENDANT FILED FOR BANKRUPTCY ON 05-24-07. Sheriff's Costs: Docketing Service Not Served Surcharge Postage So answers- 18.00 12.60 5.00 R. Thomas Kline 10.00 Sheriff of Cumberland County .42 46.02 CUNNINGHAM & CHERNICOFF 02/19/2009 Sworn and Subscribed to before me this day of , A. D. t= C=p r? ?" 3 tti;? wb - ? Z J -? w ' SHERIFF'S RETURN - NOT SERVED CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL R. Thomas Kline , Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT to wit: SARAGO PATTY A/K/A PATRICIA A. SARAGO but was unable to locate Her in his bailiwick. He therefore returns the COMPLAINT & NOTICE the within named DEFENDANT A/K/A PATRICIA A. SARAGO SARAGO PATTY NOT SERVED , as to 303 KAY ROAD MECHANICSBURG, PA 17055 DEFENDANT FILED FOR BANKRUPTCY ON 05-24-07. Sheriff's Costs: So answers- Docketing 6.00 .?J Service .00 Not Served 5.00 R. Thomas Kline Surcharge 10.00 Sheriff of Cumberland County .00 21.00 CUNNINGHAM & CHERNICOFF 02/19/2009 Sworn and Subscribed to before me this day of , A. D. r Ca _r7 C:J .?' """ Dj -< US13(Feb, 19. 2009;. 8: 13AM0N_Scaringi & Scaringi No.?922 Open a Voluntary Bankruptcy Case U.S. Bankruptcy Court Middle- District of Pennsylvania Notice.of Bankruptcy_ Case.. Filing P. 3 Page 1 of 1 The following transaction was received from Henning, Vuginia H entered on 5/24/2007 at 3:11 PM EDT and filed on 5/24/2007 Case Name: Peter Kenneth Sarago and Patricia A Sarago Case Number: 1,:07-bk-01602 Document Number: l Docket Text: Chapter 13 Voluntary Petition. Filing fee due in the amount of S 274.00 Filed by Virginia H Henning of Scaringi and Scaringi, PC on behalf of Peter Kenneth Sarago, Patricia A Sarago. (Henning, Virginia) The following document(s) are associated with this transaction: Document description:Main Document Original filename:C:1ECF1SA12AGOPE\Petition.PDF Electronic document Stamp: [STAMP bkecfStamp_1A=1009835235 [Date=5/24/2007] [FileNumber=4037330-0 ][ca2293c022bca75d8cla57835a95ac4V-Od86c3c8ec0a64cb3ec3ab295ac559d844 46306cbcf6a666cl54e89f92a2aa88be9f02858356068ec4033ac00a07735]] 1:07-bk-01602 Notice will be electronically mailed to: Virginia H Henning marysnyder@pa.net, virginiahenning@pa.net United States Trustee ustpregion03.ha.ecf@usdoj.gov 1: 07-bk-0 1602 Notice will not be electronically mailed to: file://CAECF\SARAGOPE\Filed{Complete}1EcfReceipt Case 2007-05-24P,,0300pm.htm 5/24/2007 HAROLD SWIDLER, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA V. NO: 2009-00600 PETER KENNETH SARAGO CIVIL ACTION - LAW a/k/a PETER K. SARAGO and PATTY SARAGO a/k/a PATRICIA A. SARAGO, husband and wife, : Defendants PRAECIPE TO REINSTATE TO THE PROTHONOTARY: Kindly reinstate the Complaint that was filed to the above term and number on February 5, 2009. A true and correct copy of the original process is attached hereto as Exhibit "A" and is incorporated herein by reference. Date: February 23, 2009 Respectfully submitted, C HAM &/C?HER?NICCOOFF, P.C. 'Bruce J.-Warshawsky, Esquee I.D. No. 58799 2320 North Second Street P.O. Box 60457 Harrisburg, PA 17106-0457 (717) 238-6570 Attorneys for Plaintiffs F:\Home\BJWOOCS\SV\nDLER.HAROLD\Sarego Big Ugly WarehouseTeter.PattyTraecipe to Reinstate.WPD EXHIBIT `A' SHERIFF'S RETURN - NOT SERVED CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL R. Thomas Kline , Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT , to wit: SARAGO PETER KENNETH A/K/A PETER K. SARAGO but was unable to locate Him in his bailiwick. He therefore returns the COMPLAINT & NOTICE the within named DEFENDANT A/K/A PETER K. SARAGO 303 KAY ROAD MECHANICSBURG, PA 17055 NOT SERVED , as to SARAGO PETER KENNETH DEFENDANT FILED FOR BANKRUPTCY ON 05-24-07. Sheriff's Costs: So answers- Docketing 18.00 Service 12.60 Not Served 5.00 R. Thomas Kline Surcharge 10.00 Sheriff of Cumberland County Postage .42 46.02 CUNNINGHAM & CHERNICOFF 02/19/2009 Sworn and Subscribed to before me this day of , A. D. SHERIFF'S RETURN - NOT SERVED CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL R. Thomas Kline , Sheriff , who being duly sworn according to law, says, that he made a diligent search and inquiry for the within named DEFENDANT , to wit: SARAGO PATTY A/K/A PATRICIA A. SARAGO but was unable to locate Her in his bailiwick. He therefore returns the COMPLAINT & NOTICE the within named DEFENDANT SARAGO PATTY A/K/A PATRICIA A. SARAGO 303 KAY ROAD NOT SERVED , as to MECHANICSBURG, PA 17055 DEFENDANT FILED FOR BANKRUPTCY ON 05-24-07. Sheriff's Costs: So answerer Docketing 6.00 Service .00 Not Served 5.00 R. Thomas Kline Surcharge 10.00 Sheriff of Cumberland County .00 21.00 CUNNINGHAM & CHERNICOFF 02/19/2009 Sworn and Subscribed to before me this day of , A.D US13C eo, '0. 2000',. 3,'3AMON7Scaringi & Scaringi Open a Voluntary Bankruptcy Case U.S. Bankruptcy Court Middle-District of Pennsylvania Notice .of Bankruptcy_ Ca e Filing %o, 4022 r 3 Page 1 of 1 The following transaction was received from Henning, Virginia H entered on 5/24/2007 at 3:11 PM EDT and filed on 5/24/2007 Case Name: Peter Kenneth Sarago and Patricia A Sarago Case Number: 1,;07-bk-01.602 Document Number:l Docket Tent: Chapter 13 Voluntary Petition. Filing fee due in the amount of S 274.00 Filed by Virginia H Henning of Scaringi and Scaringi, PC on behalf of Peter Kenneth Sarago, Patricia A Sarago. (Henning, Virginia) The following document(s) are associated with this transaction: Document description:Main Document Original filename:C:\ECF\SARAGOPE\Petition.PDF Electronic document Stamp: [STAMP bkecfStamp_1D=1009835235 [Date=5/24/2007] [FileNumber 4037330-0 ][ca2293c022bca75d8cla57835a95ac4P-Od86c3c8ecOa64cb3ec3ab295ac559d844 46306cbcf6a666c154e89f92a2aa88be9f02858356068ec4033ac00a07735]] 1:07-bk-01602 Notice will be electronically mailed to: Virginia H Henning marysnyder@pa.net, virginiaheraling@pa.net United States Trustee ustpregion03.ha.ecf@usdoj.gov 1:07-bk-01602 Notice will not be electronically mailed to: file://C:\ECF\SARAGOPE\Filed{Complete)\EcfReceipt Case 2007-05-24(a,)0300pm.htm 5/24/2007 c C'" 1A SHERIFF'S RETURN - REGULAR CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL GERALD N WORTHINGTON , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon SARAGO PETER KENNETH A/K/A PETER K. SARAGO the DEFENDANT , at 0017:30 HOURS, on the 2nd day of March , 2009 at 303 KAY ROAD MECHANICSBURG, PA 17055 PETER K SARAGO by handing to a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 10.80 Affidavit .00 Surcharge 10.00 Postage .42 39.22 Sworn and Subscibed to before me this of day DEFENDANT So Answers: R. Thomas Kline 03/03/2009 CUNNINGHAM & CHERNICOFF By: Deputy She f A. D. C-) ?-•• qq- Z ?"'? V r SHERIFF'S RETURN - REGULAR CASE NO: 2009-00600 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SWIDLER HAROLD VS SARAGO PETER KENNETH ET AL GERALD N WORTHINGTON Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon SARAGO PATTY A/K/A PATRICIA A. SARAGO the DEFENDANT , at 0017:30 HOURS, on the 2nd day of March , 2009 at 303 KAY ROAD MECHANICSBURG, PA 17055 PETER K SARAGO by handing to HUSBAND OF DEFENDANT together with a true and attested copy of COMPLAINT & NOTICE 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 16.00 03/03/2009 CUNNINGHAM & CHERNICOFF Sworn and Subscibed to By: before me this day Deputy She 'ff of A.D. ? ua SCARINGI & SCARINGI, P.C. Laurence C. Kress, Esquire 2000 Linglestown Road, Suite 106 Harrisburg, PA 17110 Telephone (717) 657-7770 Facsimile (717) 657-7797 Email laurence@scaringilaw.com Attorneys for Defendants HAROLD SWIDLER, Plaintiff, V. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO, a/k/a PATRICIA A. SARAGO, Husband and Wife, Defendants. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No. 09-600 Civil Term CIVIL ACTION -LAW NOTICE TO PLEAD You are hereby notified to file a written response to the enclosed New Matter within twenty (20) days from service hereof or a judgment may be entered against you. L ence C. Kress, Esquire Attorney for Defendants SCARINGI & SCARINGI, P.C. Laurence C. Kress, Esquire 2000 Linglestown Road, Suite 106 Harrisburg, PA 17110 Telephone (717) 657-7770 Facsimile (717) 657-7797 Email Laurence scarinizilaw.com Attorneys for Defendants HAROLD SWIDLER, Plaintiff, V. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO, a/k/a PATRICIA A. SARAGO, Husband and Wife, Defendants. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No. 09-600 Civil Term CIVIL ACTION -LAW ANSWER AND NEW MATTER AND NOW come the Defendants, by and through their undersigned counsel, Laurence C. Kress, Esquire, and the law firm of Scaringi & Scaringi, P.C., and submit the following Answer with New Matter to the Plaintiff's Complaint: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Admitted. 6. Admitted. 7. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. 8. Admitted in part in part and denied in part. It is admitted that Plaintiff sent, and Defendants received, the notice attached to the complaint Exhibit "E". After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment that Defendants were in default of the lease for non-monetary reasons. Strict proof thereof is demanded. 9. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. 10. Admitted in part and denied in part. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment that Defendants were in default of the lease for non-monetary reasons. Strict proof thereof is demanded. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment that Defendants failed to make payments as required under the lease, as it is unclear as to the extent of Defendants' monetary obligations. It is admitted that Defendants have not made any payments to Plaintiff since the letter of January 15, 2008. 11. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. 12. Admitted. 2 COUNT I - BREACH OF CONTRACT/LEASE 13. No response necessary. 14. ¶ 14 and all of its subparts contain conclusions of law as to which no response is necessary. By way of further answer as to each subpart: a. As a factual matter, Defendants would admit that they did not timely pay several rent installments. b. It is denied that to the extent Defendants did not pay real estate taxes, such a default constitutes a material breach. Strict proof thereof is demanded. C. It is denied that to the extent Defendants did not pay utilities at the premises, such a default constitutes a material breach. Strict proof thereof is demanded. d. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment, and, if the averment is true, whether such a default constitutes a material breach. Strict proof thereof is demanded. e. It is denied that to the extent Defendants did not maintain insurance on the premises, such a default constitutes a material breach. Strict proof thereof is demanded. f. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment, and, if the averment is true, whether such a default constitutes a material breach. Strict proof thereof is demanded. 15. ¶ 15 and all of its subparts contain conclusions of law as to which no response is necessary. By way of further answer as to each subpart: a. Past due Monthly base rent: i. Upon information and belief, Defendant owes this sum to Plaintiff. ii. Upon information and belief, Defendant owes this sum to Plaintiff. 3 iii. Upon information and belief, Defendant owes this sum to Plaintiff. iv. Upon information and belief, Defendant owes this sum to Plaintiff. V. Upon information and belief, Defendant owes this sum to Plaintiff. vi. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. vii. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. viii. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information 4 sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. ix. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. X. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. xi. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. 5 xii. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term... ". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. viii. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term... ". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. xiv. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. xv. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent 6 then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. b. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the amount of taxes paid by Plaintiff. Strict proof thereof is demanded. C. Denied. Plaintiff terminated the lease as of March 4, 2008. Exhibit G to Complaint. Under § 10(b)(ii) of the lease, landlord may be entitled to "...any rent then due, as well as the excess of the total rent reserved for the remainder of the term over the rental value of the Demised Premises for the said residue of the term...". Exhibit A to Complaint. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the rental value for the residue of the term. Strict proof thereof is demanded. d. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. e. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. f. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. 7 g. Plaintiff has incurred attorneys fees in requesting damages, which even if Defendants are found to be in breach, and if found to be responsible for some measure of Plaintiff's attorneys' fees, are grossly excessive in light of Plaintiff's election to exercise his rights under § 10(b)(ii) of the lease. h. After reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averment. Strict proof thereof is demanded. 16. 116 states a conclusion of law as to which no response is necessary. WHEREFORE, Defendants respectfully request that this Honorable Court enter judgment in their favor and against Plaintiff, and dismiss Count I with prejudice. NEW MATTER 17. Plaintiff accepted and ratified the subleases he complained of. Exhibit E to Complaint. 18. Upon information and belief, one or more of the sublessees still occupy the premises and continue to make payments to Plaintiff. 19. Upon information and belief, the sublessees occupying the premises are making payments that are applied to the real estate taxes, utilities and insurance. 20. Upon information and belief, Plaintiff has retained the security deposit paid by Defendants at the execution of the lease. 8 WHEREFORE, Defendants respectfully request that this Honorable Court enter judgment in their favor and against Plaintiff and dismiss the Complaint with prejudice. Dated: 3 -0?3 - 0 9 Respectfully submitted, SCARINGI & SCARINGI, P.C. Laurence C. Kress, Esquire Supreme Court ID No. 93137 2000 Linglestown Road, Suite 106 Harrisburg, PA 17110 Phone: (717) 657-7770 Facsimile: (717) 657-7797 laurence&scaringilaw.com Attorneys for Defendants 9 VERIFICATION We verify that the statements made in the foregoing Answer with New Matter are true and correct to the best of our knowledge, information and belief. We understand that the statements herein are subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn statements. 3XX . Date J1A6/09 Date Peter K. Sarago Patricia A. Sarago 10 CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of Defendants' Answer to the Complaint with New Matter has been served via I" class U.S. Mail, postage pre-paid to: Bruce J. Warshawsky, Esquire CUNNINGHAM & CHERNICOFF, P.C. P.O. Box 60457 Harrisburg, PA 17106-0457 urence C. Kress, Esquire 11 N ' ??? T ? 'f} t S ? L+ r,t k Z) HAROLD SWIDLER, Plaintiff, V. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO, a/k/a PATRICIA A. SARAGO, Husband and Wife, Defendants. : IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA No. 09-600 Civil Term CIVIL ACTION -LAW PRAECIPE FOR ENTRY OF APPEARANCE TO THE PROTHONOTARY: Kindly enter the appearance of Laurence C. Kress, Esquire, and the law firm of Scaringi & Scaringi, P.C., as counsel of record for the Defendants in the above-captioned matter. Dated: 5-,2'Z3 - Of Respectfully submitted, SCARINGI & SCARINGI, P.C. By ,? C aurence C. Kress, Esquire Supreme Court ID No. 93137 2000 Linglestown Road, Suite 106 Harrisburg, PA 17110 Phone: (717) 657-7770 Facsimile: (717) 657-7797 laurence&scaringilaw.com Attorneys for Defendants r_^^5 c°-- ^? ?? ? :. ? ?Y?r- ? r-.a ''?? _ ?? ? ??? - ?-- r 1'1 ?+;.. HAROLD SWIDLER, IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, Plaintiff PENNSYLVANIA NO: 2009-00600 V. PETER KENNETH SARAGO CIVIL ACTION - LAW a/k/a PETER K. SARAGO and PATTY SARAGO a/k/a PATRICIA A. SARAGO, husband and wife, Defendants REPLY TO NEW MATTER This Reply to New Matter of Harold Swidler, by and through his counsel, Cunningham & Chernicoff, P.C., against Peter Kenneth Sarago a/k/a Peter K. Sarago and Patty Sarago a/k/a Patricia A. Sarago, husband and wife, is as follows: 17. Denied as stated. It is admitted that the Letter attached as Exhibit "E" to the Complaint directs the Sublessees to make all payments to the Plaintiff. Said Letter, in full detail, clearly defines Plaintiff s position with respect to the Sublessees, which he had neither accepted nor ratified as of the date of said Letter. By way of further answer, it was only after the Lease was terminated on March 4, 2007 that Plaintiff began negotiations directly with the Sublessees. 18. It is admitted that Ken Morrow and Lincare currently occupy the Premises under direct agreements with Plaintiff and are making payments to Plaintiff in mitigation of Plaintiffs damages. A, 19. Denied as stated. While the Sublessees (now Lessees) are making payments to Plaintiff in the form of rent, no Lessee (prior Sublessees of Defendants) are making any payments for real estate taxes, utilities or insurance as was required by Defendants under the Lease. 20. After reasonable investigation, the Plaintiff is without sufficient information or knowledge to form a belief about the truth of the matters asserted herein, therefore, they are denied and strict proof at trial is demanded. By way of further reply, while the Lease required payment of a security deposit in the amount of $5,603.33, Plaintiff believes that such Security Deposit was never paid by Defendants, but if it was then it has been forfeited due to Defendants breach of the Lease and plaintiff s rights for termination thereof. plaintiff, Harold Swidler, demands Judgment in his favor against the WHEREFORE, enneth Sarago a/k/a Peter K. Sarago and Patty Sarago a/k/a Patricia A. Defendants, Peter K for damages as a result of the breach of contract in an amount which Sarago as husband and wife, lvania plus costs exceeds the limit of compulsory arbitration in Cumberland County, PennsY w lus the costs of real estate taxes, utilities and insurance through the under the Lease and at la , p us on oing interest, costs, attorney fees and other just relief that the Court term of the Lease, pl g deems appropriate. ,.T ,,.n.TT-?.1C-94AM & CHRN'WOFF By' Esquire Bruce J. Warshawsky, PA Identification No: 58799 2320 North Second Street Harrisburg, PA 17110 Telephone: (717) 238-6570 Date: April 16, 2009 \ReP1Y to New Matter.wpd F:\Home\BJW\DOCS\SWIDLBR.HAROLD\Sarago Big U91y Warehouse\Peter.Patty VERIFICATION I, Harold Swidler, hereby verify that the statements made in the foregoing Reply to New Matter are true and correct to the best of my knowledge. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unsworn falsification to authorities Date: 4- & "O JR CERTIFICATE OF SERVICE 1, Julieanne Ametrano, Legal Assistant with the law firm of Cunningham & Chernicoff, P.C., certify a true and correct copy of the REPLY TO NEW MATTER will be served by first class U.S. Mail on the following parties indicated: Laurence C. Kress, Esquire Scaringi & Scaringi, P.C. 2000 Linglestown Road Suite 106 Harrisburg, PA 17110 CUNNINGHAM & CHERNICOFF, P.C. Date: April 16, 2009 Julieanne Ametrano F:\H me\BJW\DOCS\SWIDLER.HAROLD\Sarago Big Ugly Warehouse\Peter.lptt eply to New Matter.wpd 17 TH, 1 20B APR 16 Fri 12: 115 w; : . ` `T HAROLD SWIDLER, Plaintiff, v. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY SARAGO, a/k/a PATRICIA A. SARAGO, Husband and Wife, Defendants. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 09-600 Civil Term CIVIL ACTION -LAW ORDER AND NOW this day of , 2009, upon consideration of the within Petition for Leave to Withdraw, It is hereby ORDERED that the appearance of Laurence C. Kress, Esquire, counsel of record for the Defendants, is hereby withdrawn. BY THE COURT J. Distribution: / urence C. Kress, Esquire, 2000 Linglestown Road, Suite 106, Harrisburg, PA 17110 ce J. Warshawsky, Esquire, P.O. Box 60457, Harrisburg, PA 17106-0457 Peter and Patricia Sarago, 303 Kay Road, Mechanicsburg, PA 17050 4/~/~ t?F 7HE pRC1^~tQTR~Y 2~9 S€P -4 PM 2~ 33 FEl~ftvS1'~VA~HA HAROLD SWIDLER, Plaintiff v. PETER KENNETH SARAGO a/k/a PETER K. SARAGO and PATTY : SARAGO a/k/a PATRICIA A. SARAGO, : husband and wife, Defendants IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA NO: 2009-00600 CIVIL ACTION - LAW PRAECIPE TO SATISFY JUDGMENT TO THE PROTHONOTARY: Kindly mark the above referenced Judgment as satisfied. Dated: May 2014 By �.. C x rs . cn r -.0rr; Bruce J. Warshawsky, Esquire PA Supreme Court ID No: 58799 2320 North Second. Street Harrisburg, PA 17110 Telephone: (717) 238-6570 Attorneys for Plaintiff CIAO- gq apad,141, CERTIFICATE OF SERVICE I, Julieanne Ametrano, Legal Assistant for the law office of Cunningham & Chernicoff, P.C., do hereby certify that a true and correct copy of the Praecipe to Satisfy Judgment in the above - captioned matter was sent first class U.S. Mail, First Class Mail, postage prepaid on this date, to the following: Date: May Mr. and Mrs. Peter Sarago 303 Kay Road Mechanicsburg, PA 17050 C GHAM & C • ' COFF, P.C. 2014 By. Julieanne Ametrano 2320North Second Street P.O. Box 60457 Harrisburg, PA 17110 Telephone: (717)238-6570 F:\Home\BJW\DOCS\SWIDLER.HAROLD\Sarago Big Ugly Warehouse\Peter.Patty\PRASATJG.wpd