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HomeMy WebLinkAbout10-0081FOUR LEMOYNE DRIVE ASSOCIATES, LLC, Successor-in-Interest to 4 ASSOCIATES, Plaintiff V. CRAIG W. BACHIK and RENEE M. REGAL, d/b/a KAIROS DESIGN GROUP, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Docket No.: (p - p$ ( 0,AW (&)-m r.? Confession of Judgment for Money CONFESSION OF JUDGMENT WHERE ACTION COMMENCED BY COMPLAINT Pursuant to the authority contained in the warrant of attorney, the copy of which is f _ - 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: a. Unpaid rent due for September 2009 - November 2009 $12,840.00 b. Late charges for September 2009 - November 2009 $642.00 c. Future Scheduled rents from December 1, 2009 -February 28, 2011 $53,058.00 d. Attorney's fees in the amount of 10% of all monies owed $6,654.00 Total Amount Due $73,194.00* *Plus interest from date of judgment until Defendants' obligation is satisfied, plus costs of suit. Respectfully submitted, Date: / By: Capozzi & Associates,-P.C. A, ,d em! Esquire Attorn I.D. 87441 2933 N. ront Street Harrisburg, PA 17110 (717) 233-4101 Attorneys for Defendants 4a'1-5c) Pb A-rf^/ cr*aurl 4 RT* a3577a FOUR LEMOYNE DRIVE ASSOCIATES, LLC, Successor-in-Interest to 4 ASSOCIATES, Plaintiff V. CRAIG W. BACHIK and RENEE M. REGAL, d/b/a KAIROS DESIGN GROUP, Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA Docket No.: ,Q C N: Confession of Judgment for Money COMPLAINT IN CONFESSION OF JUDGMENT FOR MONEY NOW COMES, Four Lemoyne Drive Associates, LLC, successor-in-interest to 4 Associates, Plaintiff, by its attorneys, Capozzi & Associates, P.C., and files this Complaint in Confession of Judgment for Money against the Defendants, Craig W. Bachik and Renee M. Regal, for the following reasons: 1. Plaintiff, Four Lemoyne Drive Associates, LLC, is a Pennsylvania limited liability corporation having its principal place of business located at 2933 North Front Street, Harrisburg, Dauphin County, Pennsylvania, 17110, and is the Lessor and Successor-in-interest to 4 Associates ("Four Lemoyne Drive Associates"). 2. Defendant, Craig W. Bachik, is an adult individual and Lessee doing business as Kairos Design Group with a last known principal place of business at 4 Lemoyne Drive, Suite 201, Camp Hill, Cumberland County, Pennsylvania 17011. 3. Defendant, Renee M. Regal, is an adult individual and Lessee doing business as Kairos Design Group with a last known principal place of business at 4 Lemoyne Drive, Suite 201, Camp Hill, Cumberland County, Pennsylvania 17011. 4. On or about November 21, 2003, Defendants entered into a commercial lease agreement (the "Lease") with 4 Associates with regard to premises known as Suite 201 in the building situated at 4 Lemoyne Drive, Camp Hill, PA 17011 to be used for general office purposes (the "Leased Premises"). A true and correct copy of the Lease is attached hereto and incorporated herein as Exhibit "A." 5. On or about February 15, 2008, Defendants entered into a Fourth Amendment to the Lease Agreement with Four Lemoyne Drive Associates, as the successor-in-interest to 4 Associates for the same purposes as referenced in Paragraph 4 above and to extend the Lease term to February 28, 2011 ("Lease Extension Period"). A true and correct copy of the Fourth Amendment to Lease Agreement is attached hereto and incorporated herein as Exhibit "B." 6. On or about December 8, 2008, the Parties agreed to a re-payment plan to allow the Defendants to cure previous defaults in rent payments to allow them to stay current. ("Repayment Plan"). A true and correct copy of the Repayment Plan is attached hereto and incorporated herein as Exhibit "C." 7. Paragraph 5 (Rent) of the Fourth Amendment to Lease Agreement provides that the Defendants are obligated to make certain monthly payments to Four Lemoyne Drive Associates through the end of the Lease Extension Period. Paragraph 15 (Confession of Judgment) of the Lease authorizes the Confession of Judgment against the Defendants for money due and owing to upon Defendants' default under the terms of the Lease and upon Defendants' failure to cure such default after fifteen (15) days written notice from Lessor. 9. Paragraph 15 of the Lease authorizes Lessor to confess judgment against Defendants "for all or any part of the rent specified in this Lease and then unpaid including the 2 rent for the entire unexpired balance of the term of this Lease, and/or other charges, payments, costs, and expenses reserved as rent or agreed to be paid by Lessee, and for interest and costs together with all attorney's fees and expenses incurred by Lessor." 10. Paragraph 5 (Late Charge) of the Lease provides that "[a]ny rent not received at Lessor's principal office before the close of business of the 7t' day of the month shall be subject to a 5% late charge." 11. Paragraph 13 (H) (Attorney's Fees) of the Lease authorizes Lessor to collect reasonable attorney's fees of not less than 10% of all amounts owed and protected advances under the Lease. 12. The Lease has not been released, transferred, or assigned by Four Lemoyne Drive Associates or by the Defendants. 13. Judgment has not been entered against the Defendants in any jurisdiction. 14. This judgment is being entered in connection with a commercial transaction and is not being entered by confession against a natural person in connection with a consumer credit transaction. 15. Defendants defaulted on their obligation under the Lease by failing to make payment when due since September 2009. A true and correct copy of the Account Summary maintained by Four Lemoyne Drive Associates on the Lease is attached hereto and incorporated herein as Exhibit "D." 16. On November 17, 2009, counsel for Four Lemoyne Drive Associates mailed to Defendants a Default Notice as required under Paragraph 13(A) (Default) of the Lease. A true and correct copy of the Default Notice is attached hereto and incorporated herein as Exhibit "E." 17. To date, Defendants have not cured the default. 3 18. The amounts due under the Lease, including late charges and attorney's fees as authorized by the Lease and the Addendum to Lease Agreement, are as follows: a. Unpaid rent due for September 2009 - November 2009 $12,840.00 b. Late charges for September 2009 - November 2009 $642.00 c. Future Scheduled rents from December 1, 2009 -February 28, 2011 $53,058.00 d. Attorney's fees in the amount of 10% of all monies owed $6,654.00 Total Amount Due $73,194.00* *Plus interest from date of judgment until Defendants' obligation is satisfied, plus costs of suit. WHEREFORE, Four Lemoyne Drive Associates, LLC confesses judgment against Defendants in the total sum of $73,194.00, plus post judgment interest and cost of suit. Respectfully submitted, Capozzi & Associate,% P.C. Date: By: =:?= squire 2933 N. Front Street Harrisburg, PA 17110 (717) 233-4101 Attorneys for Plaintiff Four Lemoyne Drive Associates, LLC 4 VERIFICATION I, Joan Hoke, Business Office Manager for Four Lemoyne Drive Associates, LLC, Successor-in-Interest to 4 Associates, do hereby verify that the facts made in the foregoing Complaint in Confession of Judgment are true and correct to the best of my knowledge, information and belief and that I am authorized to make this verification on behalf of the Plaintiff. I understand that any false statements therein are subject to the penalties contained in 18 Pa. C.S. § 4904, relating to unsworn falsification to authorities. Date: 1a-30.0 g qZktn " Joan Hok Four Lemoyne Drive Associates, LLC 1. PARTIES This Agreement of Lease, made this fifth (5) day of November, 2003, between 4 J / ASSOCIATES, 110 Sunset Avenue, Harrisburg, PA 17112, to be known as "Lessor",aid CRAIG W. BACHIK and RENEE M. REGAL, 4 Lemoyne Drive, Suite 20L Camp' Hill, PA 17011, to be known as "Lessee." 2. PREMISES Witnesseth, that Lessor, in consideration of the rents and covenants hereinafte mentioned, does demise and lease unto Lessee, all that certain space located at 4 Lemoyneve, Suite 201, Camp Hill, PA 17011, to be used for general office purposes (the "Premises"). The rentable square footage of the Premises is deemed to be 2,515 square feet. 3. TERM To have and to hold, unto Lessee, subject to the conditions of this Agreement for a five (5) year term beginning on the earlier of: (a) the first (1) day of January, 2004 or (b) upon the substantial completion of Lessor's space finishing work (the "Commencement Date") and ending on the thirty-first (31) day of December, 2008. If the Lease commences on a day other than the first day of a calendar month, the Rent for the month in which the Lease begins shall be prorated and the monthly payment adjusted accordingly. 4. RENT In consideration of which, Lessee agrees to pay to Lessor for the use of the Premises, the sum as follows: (A) For the period beginning on the first (1) day of January, 2004 and ending on the thirty-first (31) day of December, 2004, the monthly rent payment amount shall be $3,249.00. (B) For the period beginning on the first (1) day of January, 2005, and ending on the thirty-first (31) day of December, 2005, the monthly rent payment amount shall be $3,346.00. (C) For the period beginning on the first (1) day of January, 2006, and ending on the thirty-first (31) day of December, 2006, the monthly rent payment amount shall be $3,447.00. (D) For the period beginning on the first (1) day of January, 2007, and ending on the thirty-first (31) day of December, 2007, the monthly rent payment amount shall be $3,550.00. (E) For the period beginning on the first (1) day of January, 2008, and ending on the thirty-first (31) day of December, 2008, the monthly rent payment amount shall be $3,657.00. (F) All payments payable in advance, on the first day of each calendar month during the term. The first month's rent and security deposit is payable at the execution of this Agreement. Payments should be made payable to "4 Associates". 5. LATE CHARGE Any rent not received at Lessor's principal office before the close of business on the seventh m (7) day of the month shall be subject to a five percent (5%) late charge. Payments, when c K received by Lessor, shall be applied first to delinquent rents, utility and operating expense w charges and late charges.. .*?ooa 6. PLACE OF PAYMENT The rent reserved shall be promptly paid on the several times specified herein without deduction or abatement, unless hereinafter provided to the contrary, at the principal office of Lessor, located at 110 Sunset Avenue, Harrisburg, PA 17112, or such other address as Lessor may from time to time designate in writing. 7. HOLDING OVER AS RENEWAL A hold over by Lessee beyond the term of this Lease or any hereinafter duly authorized additional term, or failure of Lessee to give written notice by certified mail of its intention to vacate the Premises at the end of such term at least one-hundred and twenty (120) days prior to such end of term or any hereinafter duly authorized term, shall, at the option of Lessor, be deemed a renewal of this Lease on a year-to-year basis, with the renewal being under and subject to all provisions contained in this Lease, time being of the essence of giving of such notice; Such renewal shall be at the rental rate level prevailing at the end of the term plus five percent (5.0%). Such renewal of this Lease caused by Lessee's holding over can only be effectuated through written notice by Lessor to Lessee. Lessee acknowledges that it shall not rely on any oral representation regarding the renewal of the Lease term. If Lessee retains possession of the Premises after the expiration or termination of the Lease Term or termination of Lessee's right to possession of the Premises without the written consent of Lessor, Lessee shall pay rent during such holding over at double the rate in effect immediately preceding such holding over computed on a monthly basis for each month or partial month that Lessee remains in possession of the Premises. Lessee shall also pay, indemnify and defend Lessor from and against all claims and damages sustained by Lessor by reason of Lessee's holding over, including reasonable attorney's fees. The provisions of this Paragraph do not waive Lessor's right of re-entry or right to regain possession by actions at law or in equity, or any other rights hereunder, and any receipt of payment by Lessor shall not be deemed a consent by Lessor to Lessee's remaining in possession or be construed as creating or renewing any lease or right of tenancy between Lessor and Lessee. 8. SERVICES (A) BUILDING SERVICES Lessor agrees to provide the following services: standard electric, heating, air- conditioning, water, sewer rental, real estate taxes, building insurance, building maintenance, HVAC equipment maintenance, refuse collection, common area maintenance, landscape maintenance and snow removal. (B) HOURS OF OPERATION; EQUIPMENT USAGE Multiple shifts of operation, extended operating hours, excessive equipment usage or any other activity in the Premises which results in operating expenses above the standard amount shall require a reimbursement by Lessee to Lessor for this additional operating cost. (C) REFUSE COLLECTION Lessee is strictly prohibited from utilizing the refuse containers for any type of refuse generated from the Premises except for normal day-to-day typical office related refuse. This prohibition specifically includes refuse generated from moving in or out of the Premises (i.e., large quantities of cardboard boxes and/or containers, packing materials, wooden crates, unwanted furniture or office equipment, etc.) and refuse generated from the cleaning and/or purging of files from the Premises ("Non-Standard Refuse Removal"). In the event Lessee requires a refuse container for its Non Standard Refuse Removal, Lessee shall make arrangements with Lessor 2 for the placement of an additional container to be placed at the Building for Lessee's use. All costs associated with Lessee's Non Standard Refuse Removal shall be at the sole cost and expense of Lessee. It is understand that such placement of an additional container shall be on a short-term basis only and the location and placement of an additional container shall be directed by Lessor at it's sole discretion. (D) INTERIOR SUITE JANITORIAL Janitorial service inside the Premises is the responsibility of the Lessee. The janitorial service shall conform to guidelines established by Lessor, which shall be reasonable and shall reflect the manner and intensity of the use of the Premises and shall conform to reasonable and generally accepted commercial practices. For care of the floorcovering, this specifically requires the use of chair pads/mats and following the carpet maintenance / VCT maintenance / cleaning procedures established by Lessor. Lessee shall maintain the Premises at its own expense in a clean, orderly and sanitary condition, free of insects, rodents and other pests and shall not permit undue accumulation of garbage, trash, rubbish and other refuse, but shall remove from the Premises the same at its own expense and shall keep such refuse in proper containers as set forth in Paragraph 8 (C) of this Lease. (E) SERVICE PROVIDERS Lessor reserves the right to select pre-approved service providers ("Providers") for any or all of the following: Bottled water delivery, janitorial service, telecommunications wiring, satellite dish installation and wiring, and/or any other service or product routinely supplied to/delivered to commercial office tenants. Lessor shall notify Lessee of the Providers from time to time, and Lessee shall use only the Providers for any goods or services for which a Provider has been selected. The quality and cost of the Provider's service shall be in keeping with the usual and customary charges of other businesses offering equivalent goods and/or services in the area. 9. NEGATIVE COVENANTS OF LESSEE (A) WASTE, DAMAGE, OR INJURY TO PREMISES; RESTORATION No waste, damage or injury to the Premises shall be committed, and at the end of the term the Premises shall be restored, at the option of Lessor, to the same condition in which it was at the commencement of the term, and the cost of said restoration shall be paid by Lessee, which cost shall be treated as additional rent due and owing under the terms of this lease. This paragraph is subject to the exceptions of ordinary wear and tear, and unavoidable damage by fire, elements, casualty, or other cause or happening not due to Lessee's negligence. (B) LAWFUL POSSESSION; FIRE PRECAUTIONS; MACHINERY WEIGHTS Lessee shall not carry on any unlawful or immoral business in or about the Premises, and shall not carry on any business which will endanger the building from fire or cause a forfeiture of any fire insurance that Lessor has or may hereafter have on the Building. Lessee shall not conduct activities which would cause a forfeiture of any fire insurance. Lessee shall not operate any machinery or equipment that may be harmful to the building, or disturbing to other occupants of the building, nor place weights in any portion of the Premises beyond the safe carrying capacity of the structure. (C) SIGNS Lessee shall not place any signs upon the exterior of the Premises nor cause any lettering of any kind whatsoever to be placed upon the outside windows of the Premises. Lessee will be identified by name and business on any sign or directory to be placed outside or inside the building by Lessor for the purpose of identifying tenants, at the expense of the tenant. It is understood that the Lessee shall then become responsible for the purchase, erection, maintenance and liability of such signs. (D) ALTERATIONS AND IMPROVEMENTS Lessee shall not have the privilege of improving or altering the Premises for Lessee's own purposes, unless Lessor approves any proposed improvement(s) in writing, and improvements are made at Lessee's expense, other than as provided prior to occupancy. (E) ASSIGNING, ETC., BY LESSEE Lessee shall not, without first obtaining the prior written consent of Lessor: (i) assign, convey or otherwise transfer this Lease or any interest hereunder, or sublease the Premises, or any part hereof, whether voluntarily or by operation of law; or (ii) permit the use of the Premises by any person other than Lessee and its employees. Any such transfer, sublease or use described in the preceding sentence (a "Transfer") occurring without the prior written consent of Lessor shall be void and of no effect. Lessor's consent to any Transfer shall not constitute a waiver of Lessor's right to withhold its consent to any future Transfer. Lessor's consent to any Transfer or acceptance of rent from any parry other than Lessee shall not release Lessee from any covenant or obligation under this Lease. Lessor's consent to any Transfer shall not relieve Lessee's liability to Lessor for the payment of rent and other sums and for the performance of all obligations of Lessee under this Lease. Lessor shall require, as a condition to its consent to any Transfer, that the Lessee and assignee execute an instrument which sets forth that Lessee shall not be released from its obligations under the Lease and that assignee shall assume and agree to fulfill, observe and perform each and every covenant and obligation under the Lease from and after the effective date of such assignment. In the event of a subletting of the Premises, Lessor shall, at its sole discretion, designate the real estate broker which will market the Premises. (F) TELEPHONE & COMPUTER WIRING If the Lessee desires to introduce telephone wires and computer wires, the Lessor will direct the manner of placing of same and without such direction, no installation of any such wiring will be permitted. The attaching of wires to the outside of the building is absolutely prohibited. (G) FIBEROPTIC COMMUNICATIONS If the Lessee desires to introduce certain fiberoptic communication services into the Premises and/or Building, the Lessor will direct the manner of placing of same and without such direction, no installation of any such cabling will be permitted. In the event the Building is equipped with fiberoptic communication capabilities, Lessee shall utilize the service provider which is currently in place at the Building. Lessee shall be solely responsible for all costs associated with such installation and utilization of such communication services. In the event the Building is not equipped with fiberoptic communication capabilities, Lessor shall, at its sole discretion, designate which communication service provider is to be utilized at the Building. Lessee shall be solely responsible for all costs associated with such installation charges incurred to equip the Building with fiberoptic communication services, and all costs associated with the utilization of such service. 4 Lessee further agrees that it shall be solely responsible for any and all damages which are incurred at the Building and/or Premises due to the installation of such service. (H) SATELLITE DISH / ROOF TOP ANTENNAS In no event shall any installation of satellite dishes or roof top antennas be installed at the Building in which the Premises are located without obtaining in each instance Lessor's prior written consent. All such installations shall be performed at Lessee's expense by Lessor or Lessor's contractors, or, with prior written consent of Lessor, may be performed by Lessee, at its expense, with contractors approved by Lessor and under such rules and procedures as Lessor may prescribe. Upon obtaining Lessor's consent to such installation, Lessor shall provide to Lessee a separate agreement ("License Agreement") which will grant Lessee the right to utilize the additional area under the terms and conditions as contained in the License Agreement. Lessee shall pay to Lessor in addition to its monthly rent payment as defined in Paragraph 4 of this Lease, a monthly usage fee which shall be determined at the time of Lessor's approval of the installation. (1) LOCKS It is agreed and understood that Lessor shall maintain, at all times, the Premises and the Building (including exterior and interior door locks) on its master keying system. Lessee shall not have the privilege of placing or causing to be placed any additional locks or bolts of any kind upon any of the doors or windows, nor shall any changes be made to any locks or the locking mechanisms therein, without Lessor's approval. Lessee shall not place or cause to be placed any interior locking and/or custom locking without Lessor's approval. Any interior or other custom locking desired by Lessee shall be performed by Lessor and/or its subcontractor. Lessee shall reimburse Lessor for all costs incurred by Lessor associated with such installation. Any changes or re-keying of the locks will be at the sole expense of the Lessee. The doors leading to the corridors or main halls shall be kept closed during business hours except as they may be used for ingress or egress. Each Lessee shall, upon the termination of its tenancy, restore to Lessor all keys of offices, storage and toilet rooms either furnished to, or otherwise procured by, such Lessee, and in the event of the loss of any keys so furnished, such Lessee shall pay to Lessor the replacement cost thereof. 10. LESSOR'S RIGHTS (A) RIGHT OF INSPECTION It is agreed and understood that Lessor, Lessor's duly authorized agents, contractors, and employees may enter the Premises at reasonable times during the term, for the purposes of inspection, maintenance work, and to show the premises to prospective tenants. (B) RULES AND REGULATIONS Lessee shall observe and comply and shall cause its subtenants, assignees, invitees, employees, contractors and agents to observe and comply, with the rules and regulations listed on Exhibit A attached hereto and with such reasonable modifications and additions thereto as Lessor may make from time to time. Lessor shall not be liable for failure of any person to obey such rules and regulations against any person, and the failure of any person to obey such rules and regulations shall not constitute a waiver thereof or relieve Lessee from compliance therewith. No rule or regulation shall be arbitrary, but shall be reasonable in every respect. Strict adherence to these rules and regulations is necessary to guarantee that each 5 and every tenant will enjoy a safe and undisturbed occupancy of its premises in the Building. Smoking is prohibited inside both the Premises and in the Building. Parking quantity and location shall be regulated by Lessor. 11. RESPONSIBILITY OF LESSEE (A) DAMAGES OR INJURY TO PROPERTY All damages or injuries done to the Premises by Lessee and/or Lessee's customers, clerks, servants, agents, employees, visitors of Lessee, and individuals for whom Lessee is responsible, other than those caused by ordinary wear and tear, shall be repaired by Lessee under the direction of Lessor at the expense of Lessee. Lessee covenants and agrees to make such repairs upon twenty (20) days written notice given to Lessee by Lessor, and if Lessee shall neglect to make said repairs or commence to make the same promptly or complete the same within twenty (20) days after receiving such notice, Lessor shall have the right to make such repairs at the expense and cost of Lessee, and the amount thereof may be collected as additional rent accruing for the month following the date of the said repairs, and if said expense is made at the expiration of the term, then the cost so made may be collected by the Lessor as an additional rent for the use of the Premises during the entire term. (B) PAYMENT OF JUDGMENTS, ETC. Lessee shall bear, pay and discharge when and as the same become due and payable all judgments and lawful claims for damages or otherwise against Lessor, arising from Lessee's use or occupancy of the Premises, and will assume the burden and expense of defending all such suits, whether brought before or after the expiration of this Lease, and will protect, indemnify and save harmless Lessor, or Lessor's agents, servants and employees by reason of or on account of the use or misuse of the Premises, or any part thereof, due to the negligence of Lessee and/or Lessee's agents, clerks, servants, employees, visitors, customers, and individuals for whom Lessee is responsible. (C) DISCHARGE OF LIABILITY In consideration of securing this Lease at the above-stated rent, Lessee does hereby release and discharge the Lessor, its agents, servants and/or employees, and said Lessor's successors and/or assigns, from any and all liability by reason of any injury, loss and/or damage to any person and/or property in the demised premises, whether belonging to Lessee or any other person, caused by any fire, the breaking, bursting, stoppage and/or leakage of any water pipe, gas pipe, sewer, basin, water closet, steam pipe and drain in any part or portion of the Premises and/or any part or portion of the building, of which the Premises is a part, and from all liability for any and all injury, loss and/or damage caused by the water, gas, steam, waste and contents of said water pipes, gas pipes, steam pipes, sewers, basins, water closets and drains, or from any kind of injury, loss and/or damage which may arise from any other cause on the premises or in the building, unless directly attributable to Lessor's negligence. 12. RESPONSIBILITY OF LESSOR (A) PARTIAL OR TOTAL DESTRUCTION OF PROPERTY In the event that the Building or the Premises shall be totally or substantially damaged by fire or other casualty or happening, this Lease shall not terminate, but in such event Lessor agrees to repair, restore or rebuild the Premises, as the case may be, subject to the availability of insurance proceeds. Lessor's obligation to restore 6 the Premises shall be limited to restoring those improvements in the Premises as of the date of such fire or other casualty which were made at Lessor's expense and shall exclude any furniture, fixtures, equipment, additions, alterations or improvements in the Premises which were made at Lessee's expense. The rent payable hereunder shall entirely abate in the case where the Premises is substantially destroyed or so damaged as to be rendered untenantable until the Premises shall have been restored, repaired, or rebuilt, as the case may be, and put in proper condition for use and occupancy. The rent payable hereunder shall abate for that part of the Premises which is untenantable, or if it is not substantially destroyed but rendered partially untenantable, on a per diem basis from the date of such fire or other casualty until Lessor has substantially completed its repair and restoration work, provided Lessee does not occupy such part of the Premises during said period. Partial destruction shall be restored within ninety (90) days from the date of destruction and complete destruction shall be completely rebuilt within one-hundred and twenty (120) days from the date of destruction to the extent feasible. In the event the Building or the Premises cannot be repaired, restored or rebuilt as aforesaid, and Lessor is not diligently pursuing such repair and restoration work, Lessee's sole remedy shall be the right to cancel and terminate this Lease without further liability on the part of either party. (B) DAMAGE FOR INTERRUPTION OF USE Lessor shall not be liable for any damage, compensation or claim by reason of inconvenience or annoyance arising from the necessity of making repairs, alterations and/or additions to any portion of Premises, the interruption in the use of the Premises, or the termination of this Lease by reason of the destruction of the Premises. 13. LESSEE'S DEFAULTS AND REMEDIES OF LESSOR (A) DEFAULT The occurrence of any of the following shall constitute a default (a "Default") by Lessee under this Lease: (i) Lessee fails to pay any Rent when due and such failure is not cured within fifteen (15) days from the date of the notice from Lessor; (ii) Lessee fails to perform any other provision of this Lease and such failure is not cured within thirty (30) days (or immediately if the failure involves a hazardous condition) after notice from Lessor; (iii) the leasehold interest of Lessee is levied upon or attached under process of law; (iv) Lessee or any guarantor of this Lease dies or dissolves; (v) Lessee abandons or vacates the Premises; or (vi) any voluntary or involuntary proceedings are filed by or against Lessee or any guarantor of this Lease under any bankruptcy, insolvency or similar laws and, in the case of any involuntary proceedings, are not dismissed within sixty (60) days after filing. (B) RIGHT OF RE-ENTRY Upon the occurrence of a Default, Lessor may elect to terminate this Lease, or, without terminating this Lease, terminate Lessee's right to possession of the Premises. Upon any such termination, Lessee shall immediately surrender and vacate the Premises and deliver possession thereof to Lessor. Lessee grants to Lessor the right to enter and repossess the Premises and to expel Lessee and any others who may be occupying the Premises and to remove any and all property therefrom, without being deemed in any manner guilty of trespass and without relinquishing Lessor's rights to Rent or any other right given to Lessor hereunder or by operation of law. (C) RELETTING If Lessor terminates Lessee's right to possession of the Premises without terminating this Lease, Lessor may relet the Premises or any part thereof. In such case, Lessor shall use reasonable efforts to relet the Premises on such terms as 7 Lessor shall reasonably deem appropriate; provided, however, Lessor may first lease Lessor's other available Premises and shall not be required to accept any Lessee offered by Lessee or to observe any instructions given by Lessee about such reletting. Lessee shall reimburse Lessor for the costs and expenses of reletting the Premises including, but not limited to, all brokerage, advertising, legal, alteration and other expenses incurred to secure a new Lessee for the Premises. In addition, if the consideration collected by Lessor upon any such reletting, after payment of the expenses of reletting the Premises which have not been reimbursed by Lessee, is insufficient to pay monthly the full amount of the Rent, Lessee shall pay to Lessor the amount of each monthly deficiency as it becomes due. If such consideration is greater than the amount necessary to pay the full amount of the Rent, the full amount of such excess shall be retained by Lessor and shall in no event be payable to Lessee. (D) NON-WAIVER No waiver by Lessor of any breach by Lessee or any of Lessee's obligations, agreements or covenants herein shall be a waiver of any subsequent breach or of any obligation, agreement or covenant, nor shall any forbearance by Lessor to seek a remedy for any breach by Lessee be a waiver by Lessor of any rights and remedies with respect to such or any subsequent breach. (E) TERMINATION OF LEASE If Lessor terminates this Lease, Lessor may recover from Lessee and Lessee shall pay to Lessor, on demand, as and for liquidated and final damages, an accelerated lump sum amount equal to the amount by which Lessor's estimate of the aggregate amount of Rent owing from the date of such termination through the Expiration Date plus Lessor's estimate of the aggregate expenses of reletting the Premises, exceeds Lessor's estimate of the fair rental value of the Premises for the same period (after deducting from such fair rental value the time needed to relet the Premises and the amount of concessions which would normally be given to a new Lessee), both discounted to present value at the rate of six percent (6%) per annum. (F) RIGHTS AND REMEDIES CUMULATIVE No right or remedy herein conferred upon or reserved to Lessor is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity or by statue. (G) OTHER REMEDIES Lessor may but shall not be obligated to perform any obligation of Lessee under this Lease; and, if Lessor so elects, all costs and expenses paid by Lessor in performing such obligation, together with interest at the Default Rate, shall be reimbursed by Lessee to Lessor on demand. Any and all remedies set forth in this Lease: (1) shall be in addition to any and all other remedies Lessor may have at law or in equity, (ii) shall be cumulative, and (iii) may be pursued successively or concurrently as Lessor may elect. The exercise of any remedy by Lessor shall not be deemed an election of remedies or preclude Lessor from exercising any other remedies in the future. (H) ATTORNEY'S FEES Lessee shall be liable to Lessor for all costs and expenses, including reasonable attorney's fees of not less than ten percent (10%) of all amounts owed and protective advances, incurred by Lessor in protecting or enforcing its rights under the Lease upon any default by Lessee with regard to any of Lessee's obligations under the Lease. (1) SURRENDER Upon the default of this Lease by Lessee or termination of this Lease prior to the expiration of the Term or Lessee's right to possession of the Premises, Lessee shall return the Premises to Lessor in good order and condition, ordinary wear and damage by fire or other casualty excepted. Lessor, at its option, may require Lessee to remove any alterations which were made by Lessor on behalf of Lessee, such removal shall be done in a good and workmanlike manner; and upon such removal Lessee shall restore the Premises to its condition prior to the installation of such alterations. If Lessee does not remove such alterations after being requested to do so by Lessor, Lessor may remove the same and restore the Premises; and Lessee shall pay the cost of such removal and restoration to Lessor upon demand. Lessee shall also remove its furniture, equipment, trade fixtures and all other items of personal property from the Premises prior to the termination of the Term or Lessee's right to possession of the Premises. If Lessee does not remove such items, Lessee shall be conclusively presumed to have conveyed the same to Landlord without further payment or credit by Lessor to Lessee; or at Lessor's sole option such items shall be deemed abandoned, in which event Lessor may cause such items to be removed and dispensed of at Lessee's expense, without notice to Lessee and without obligation to compensate Lessee. 14. ACCEPTANCE OF NOTICE TO QUIT; DISPOSSESSION; WAIVER OF REMEDIES BY LESSEE; WAIVER OF DEMAND Lessee hereby accepts notice to quit, remove from, and surrender up possession of, the Premises to Lessor at the expiration of the term hereof, whenever it may be determined. On failure to pay rent due for fifteen (15) days, or upon breach of any other condition of this Lease, as possibly modified by Section thirteen (13) hereof, despite the distraint, Lessee shall be a nontenant, subject to dispossession by Lessor, without further notice or process of law, with release of error and of damages, and Lessor may re-enter the premises and dispossess Lessee without thereby becoming a trespasser. Lessee hereby waives the benefit(s) of all exemption laws of this Commonwealth that now are in force or may hereinafter be in force, or in any action or actions that may accrue on this Lease, and in any distress or distresses that may be made for collection of the whole of said rent, or any part thereof. Lessee does also hereby waive any and all demand for payment of the rent herein provided for, either on the day due or on any other day, either on the land itself or in any other place, and agrees that such demand shall not be a condition of re-entry or of recovery of possession without legal process or by means of any action or proceeding whatsoever. 15. CONFESSION OF JUDGMENT If rent and/or charges hereby reserved as rent shall remain unpaid for fifteen (15) days beyond any day when the same ought to be paid, and after fifteen (15) days written notice from Lessor, Lessee hereby empowers any Prothonotary or Attorney of any Court of Record to appear for Lessee; in any and all actions which may be brought for rent and/or the charges, payments, costs and expenses reserved as rent, or agreed to be paid by Lessee and/or to sign for Lessee an agreement for entering in any competent court an amicable action or actions for the recovery of rent or other charges or expenses, and in said suit(s) or in said amicable action or actions to confess judgment against Lessee for all or any part of the rent specified in this Lease and then unpaid including the rent for the entire unexpired balance of the term of this Lease, and/or other charges, payments, costs and expenses reserved as rent or agreed to be paid by Lessee, and for interest and costs together with all attorney's fees and expenses incurred by Lessor. Judgment in ejectment as herein provided may be entered concurrently therewith. Judgment may be confessed repeatedly until any deficiency is collected. 16. EJECTMENT If rent and/or charges hereby reserved as rent shall remain unpaid for fifteen (15) days beyond any day when the same is due, and after fifteen (15) days written notice from Lessor, it is agreed that an amicable action of ejectment may be entered in the Court of Common Pleas, in which Lessor shall be Plaintiff and Lessee, and all who come into 9 possession during the term or continuance of this Lease or under this Lease shall be Defendants, and Lessee hereby authorizes and empowers any attorney of any court of record to appear for Lessee in such amicable action of ejectment and to confess judgment therein in favor of Lessor for possession of the leased premises, and Lessee further authorizes the immediate issuance of a writ of possession to Lessor without leave of court. Lessor shall have the right to concurrently confess judgment for money and for possession. 17. CONSENT TO JURISDICTION Lessee hereby consents to the jurisdiction and venue of the Courts of Common Pleas of Dauphin County, Pennsylvania and/or the United States District Court for the Middle District of Pennsylvania in any and all actions or proceedings arising from this Lease and irrevocably agrees to service of process by personal service upon Lessee, wherever Lessee may be located or by certified or registered mail, return receipt requested, directed to Lessee at its last known address. 18. REMEDIES CUMULATIVE All remedies of Lessor herein shall be cumulative and concurrent. 19. POSSESSION DEFINED Possession of the Premises includes the exclusive use of the same, together with the use, in common with any other occupants of the Building, of the hallways, stairs, toilet rooms, water, and parking area. 20. CONDEMNATION In the event that the Premises or any part thereof is taken or condemned for a public or quasi-public use, this Lease, shall, as to the part so taken, terminate as of the date title shall vest in the condemnor, and rent shall abate in proportion to the square feet of lease Premises taken or condemned, or shall cease if the entire Premises be so taken. If a part taken substantially and unreasonably interferes with the function and efficiency of Lessee's business, Lessee may terminate this Lease on the remaining portion of the Premises, by delivering thirty (30) days written notice to Lessor. In any event, Lessee waives all claims against Lessor by reason of the complete or partial taking of the Premises. 21. SUBORDINATION The rights and interests of Lessee under this Lease shall be subject and subordinate to any mortgage(s) that may be placed upon the Premises and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements and extensions thereof. 22. ASSIGNMENT BY LESSOR Lessor may assign its interest in this Lease, or any part thereof, and such assignee shall thereupon be deemed Lessor hereunder. 23. QUIET ENJOYMENT Lessee, upon paying the said rent and performing the covenants of this Lease, on its part to be performed, shall and may peaceably and quietly have, hold and enjoy the Premises for the term aforesaid and any herein duly authorized additional term, subject, however, to the exceptions, reservations and conditions of this Lease. Lessor hereby reserves the right to prescribe, at its sole discretion, reasonable rules and regulations governing the use and enjoyment of the Premises and the remainder of the Property. Lessee shall adhere to the rules and regulations and shall cause its agents, employees, invitees, visitors and guests to do so. 24. SECURITY DEPOSIT Upon the execution of this Lease, Lessee shall deposit with Lessor a security deposit of $3,249.00 for the performance of all terms, covenants and conditions of this Lease. Lessee agrees to forfeit said security deposit to Lessor upon failure to completely satisfy any 10 and/or all terms and covenants of this Lease Agreement. This deposit shall be non-interest bearing and will be retained in its entirety for the full term of this Lease. 25. SUBSTITUTION OF OTHER PREMISES At any time hereafter, Lessor may upon thirty (30) days' prior notice to Lessee, substitute for the Premises other Premises in the Building or into any other building which is owned and/or managed by Lessor or any other entity owned by Lessor (the "New Premises"), provided that the New Premises shall be reasonably usable for Lessee's business hereunder; and, if Lessee is already in occupancy of the Premises, then in addition Lessor shall pay the expenses of moving Lessee from the Premises to the New Premises and for improving the New Premises so that they are substantially similar to the Premises. 26. RENEWAL OPTION Lessee shall have the right and option of renewing this Lease upon the same terms and conditions as herein contained, for one (1) additional three (3) year period, Provided that: (A) The rental paid during the renewal term shall be the rental paid at the end of the original term, in addition to an annual adjustment to be negotiated with the Lessor. (B) Lessee is not in default hereunder. (D) Lessee gives written notice by certified mail or nationally recognized overnight courier of its exercise of this option not less than one-hundred, twenty (120) days prior to the expiration of the original term or any hereinbefore duly authorized additional term, time being of the essence of giving of such notice. 27. NOTICES All notices and demands to be given one party to the other party under this Lease shall be given in writing, mailed or delivered to Lessee or Lessor, as the case may be, at the address set forth above or at such address as either party may hereafter designate. Notices shall be delivered by hand, or by Unites States certified or registered mail, postage prepaid, return receipt requested, or by a nationally recognized overnight air courier. 28. LEASE CONTAINS ALL AGREEMENTS It is expressly understood by the parties that the whole agreement between them is embodied in this Lease (executed in duplicate), and that no part or items are omitted, unless the same be hereinafter modified by written agreement(s). 29. HEIRS, ETC. This Lease shall be binding upon the parties hereto and their respective successors and/or assigns. 30. HEADINGS NO PART OF LEASE Any headings preceding the text of the several paragraphs and subparagraphs hereof are inserted solely for convenience of reference and shall not constitute a part of this Lease, nor shall they affect its meaning, construction or effect. 11 IN WITNESS WHEREOF, 4 ASSOCIATES, as Lessor, has caused this instrument to be signed on the date and year first below written. DATE: // I -)-4 t3 WITNESS: BY: e?Y- NORMAN K. A. HOFFER, PARTNER TAX ID #: IN WITNESS WHEREOF, CRAIG W. BACHIK and RENEE M. REGAL, as Lessee, has caused this instrument to be signed on the date and year first below written. r DATE: WITNESS: BY: -&6, U R E M. REGAL, ESSEE SSN #: (68- b2 -548 12 SSN #:_? ?Z 03 d WED 15:18 FAX 717 920 5902 Kairos Design Group 2002/003 104!2009 11:10 N0.780 9002 FOU.?? AMEN?aMENT TO LEASE AGTtEEMEN'i` THIS FOURTH AMENDMENT TO LEASE AGREEMENT (the "Amendment") is made as of this fifteenth (15) day of Febriiaty, 2008 by and between FOUR LEMOYNE DRIVE ASSOCIATES, LLC, successor in interest to 4 ASSOCIATES, 2933 N. Front Street, Harrisburg, PA 17110 (the. "Lessor") and CRAIZT W. RACWK and RENEE M. REGAL, 4 Lemoyne Drive, Suite, 201, .Lemoyne, PA 17043 (the "Lessee"). 'JVIT:INWSETH: WHEREAS, Lessor and Lessee have entered into a Commercial Lease dated November 5, 2003, as amended by a Fast Amendment to Lease Agreement dated November 5, 2003, a Second Amendment to Lease Agreement dated March 3, 2004 and a Third Amendment to Lease Agreement dated August 2, 2005 (together as amended to be known as the "Lease") for premises known as 4 Lemoyne Drive, Suite 201, Lemoyne, PA-.-J7043 (the "Premises"). The total rentable area of the Premises is deemed to be 3,947 square feet; and Wf W1 FAS, all terms defined in the f asQ (?all aav-e `he Duna meanings whezt referred to herein; and, WHEREAS, esser and Lessee desire to amend the Lease to provide for the expansion of Lessee's office space in the Building; upon the tears and conditions set forth below, NOW, THEk-EFORE, in r:ordsidelation of the foregoing premises and the mutual promises and covenants hereiuafter contained, the par#ies hereto, intending to be legally bound hereby agree as follows: 1. INC(1ItMRAnONE' herein by reference, ?' t?E_MISE5. Tf??: foregoing reciiits acre u?.comzated . 1 $ . 71we rase shall be extended for an additional term of two (2) years begiaWng on. the first (1 day ,or March, 2009 and ending on the twenty-eighth (28) day (-if February, 2011 (the `Lease: Extension P"erzod"). 3. DUC1II Rr 0F p'RENIISES. Beginni g o-,a the ;first (f) day of Match, 1,008 (the "Commencement Date'"), the pease shall be amended ti) reflect Lessee's return of all that certain space formerly known as 4 .Lemoyne Drive, Suite 21Y0 , Lemoyne, PA 17043 (the "Reduced Area"). The tote, :€eutable area of the Reduced Area is deemed to be 1,432 square feet. Prior to the Commencement Date, Lessee shall return the Reduced Area to Lessor- Lessee shall be solely responsible for all costs a.ud expenses associated with its return of the Reduced Area, including spF.c ally, but not limited to, the removal of Lessee's personal. property, equipnerit; ibimit9.ure, sigmige and the removal of telephone and computer :system equipment. 4. ME. Beginning on the Catnmenc;emer't Date, Paragraph 2 of the ease shall be deleted in its en:tircty and replaced with the .to1lowi3a; F: "Witnesse-th, th,lt `1 ssor,, in consideration of the rent; ,nd covenants herei ne?r m0utloned, does demise and lease unto 1..,_;,see, all *hat cextaiA Pace located at 4 Lemoyne Drive, Suite 201, 7 en?oyne, Z'A :1704 , to be used fox geretal officF;parposes (the "Premises"). "Me total rentable area of the pr n=' es is deeme,:1 to 2. 15 square feet. 5. . Tiegi APing on the CmJnen(-.:tnent Date:,. Pwagraph 4 of the Lea$-- shall be amended_ as follows: H a) For the period begin"ing on the fast (1) ciey of march, 2008 and ending on. the m twenty-eighth (28) day of February, 2009, the monthly rent payment shalt. be K m $3,353.(3(1. W .*swaa 0.`. !D8 WED 15:18 PAX 7.17 920 5902 Kairos Design Group Z003/003 031041'2008 11:10 NO. 780 D003 b) For the period beginning on the first (1) day of March, 2009 and ending on the twenty-eighth (29) day of February, 2010, the monthly rent payment skull be $3,454.00. c) For the period begin niug on the fast l,) day of March, 2010 and ending on the twenty-eighth (28) day of February, 2011, the monthly rent payment shall be $3,558.00. 6. EXECUTION &ND_DELTVERY. Submission of this Amendment for examination or signatum by Lessee is neither an offer, an option for lease, a reservation of space nor a contract No party shall have any legal rights or obligations on account of this Amendment, and no parry shall rely upon this Amendment unless and until fill execution of this Amendment Lessor shall never be obligated to execute this Amendment or liable for its failure or refusal for any reason or no reason to do so, even after extended negotiations and/or agreement in principle and, or execution or acceptance of proposals, terms sheets or letters of intent. 7. RAT?'I. N- F LEASE. This Amendment shall be construed in conjunction with the Lease and, except as amended hereby, all of the terms, covenants acid conditions of the Lease shall remain in. full force and effect and are. hereby ratified and confirmed. IN WrINBSSS VV 1iF OF, Lessor and Lessee have caused this First Amendment to Lease to be executed by their duly authorized representatives on the clay and year above written- WITNESS: LESSOR: FOUR LIE -IT'S, LLC By, ?' #WZC, " WITNESS: WITNESS: y' icy: _ lu H don, Renee M, Regal, essee RENEE fVL RL( r*-L FOUR LEMOYNE DRIVE ASSOCIATES, LLC 2933 NORTH FRONT STREET HARRISBURG, PA 17110 717-233-4101 November 19, 2008 Craig Bachik & Renee Regal Kairos Design Group Suite 201 Four Lemoyne Drive Lemoyne, PA 17011 Re: Revised Delinquent Rent Suite 201 at Four Lemoyne Drive Dear Craig and Renee: I spoke with Mr. Capozzi and he agreed to the change in the monthly rent payment from $5280 to $4280. Before November 30, 2008 we will need $4,280 as your payment for November 2008. Each month thereafter you will need to pay us $4280 per month until your rent is caught up to date. The amount of $4280 needs to be in our office before the end of each month. As previously stated the amount of rent and late fees due as of November 2008 is $17,893. If we do not receive the $4280 per month you will need to vacate the property in accordance with the terms of your lease. Moreover, we will take action to collect the past due rent. Please sign below as your acceptance of this agreement. Sincerely, aa•1?-,, HA an M. Hoke, Office Manager jh ?(.... ,.. Craig W. B Date 12 / Witness plan. -- -La Renee M. Regal Dz W EXHIBIT I FOUR LEMOYNE DRIVE ASSOCIATES, LLC 2933 North Front Street Harrisburg, PA 17110 Bill To Craig Bachik Renee Regal Suite 201 Four Lemoyne Drive Lemoyne, PA 17011 Invoice Date invoice # 11/20/2009 218 P.O. No. Terms Project Due on receipt Craig W. Bachik & Renee R... Quantity Description Rate Amount September 1, 2009 October 1, 2009 November 1, 2009 4,280.00 4,280.00 4,280.00 4,280.00 4,280.00 4,280.00 Total $12,840.00 C1f;1'11CS1 I D Louis J. Capozzi, Jr., Esquire* Daniel K. Natirboil~ Esquire Donald R. Reavev. Esouire Bruce G. Baron, Esquire Andrew R. Eisemann, Esquire David C. Dggle. Esquire Timothy Ziegler, Reimb. Analyst Karen L. Fisher, Paralegal Jennifer Kain, Paralegal Keyoung Gill, Paralegal ?(Iic.md in PA, NJ and MD) Craig W. Bachik Renee M. Regal Kairos Design Group 4 Lemoyne Drive, Suite 201 Camp Hill, PA 17011 2933 North Front Street Harrisburg, PA 17110 Telephone: (717) 233-4101 Fax: (717) 233-4103 www.capozziassociates.com Craig I. Adler, Esq. Of Counsel Re: Notice of Default Lease Agreement between 4 Lemoyne Drive Associates, LLC and Craig W. Bachik and Renee M. Regal Dear Mr. Bachik and Ms. Regal: Please be advised that our law firm represents 4 Lemoyne Drive Associates, LLC regarding the default of the above referenced Settlement Agreement. Our client has advised us that you have failed to make rent payments since September 2009. At this time, your lease arrearages total $12,840.00. Pursuant to paragraph 13(A) of the Commercial Lease, you are provided a total of 15 days from the date of this Notice to cure the default. You are hereby notified that if you fail to cure the default, our client shall declare that the Lease is in default. If you wish to resolve this matter without a lawsuit, you must, within 15 days of the date of this letter, mail a check or money order payable to 4 Lemoyne Drive Associates, LLC in the amount of $12,840.00 to my office at the address indicated above. If I do not receive payment before the deadline expires, we intend to declare the Lease in default and file a lawsuit against you in the Court of Common Pleas of Cumberland County, PA. You should be aware that a lawsuit will increase your total balance with court costs and attorney's fees as authorized under the Lease. ARE/kj g cc: Louis J. Capozzi, Jr., Esquire THIS LETTER AND ANY FUTURE LETTERS FROM OUR FIRM ARE AN ATTEMPT TO COLLECT A DEBT, AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE. E- m K C4 W a ?wan November 17, 2009 FOUR LEMOYNE DRIVE ASSOCIATES, LLC, Successor-in-Interest to 4 ASSOCIATES, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. CRAIG W. BACHIK and RENEE M. REGAL, d/b/a KAIROS DESIGN GROUP, Defendants Docket No.: 10- 081 aivi(Te'rm Confession of Judgment for MAey r<. I CERTIFICATE OF RESIDENCE UNDER RULE 2951 I do hereby certify that the complete post office address of the Plaintiff, Four Lemoyne Drive Associates, LLC is 2933 North Front Street, Harrisburg, PA 17110. I do hereby certify that the last known and complete post office address of the J • -f 1 r Defendants, Craig W. Bachik and Renee M. Regal d/b/a Kairos Design Group, 4 Lemoyne Drive, Suite 201, Camp Hill, PA 17011. Date: Zy -* By: A is& , Esquire Attorney W -N"7441 Capozzi & Associates, P.C. 2933 N. Front Street Harrisburg, PA 17110 (717) 233-4101 Attorneys for Plaintiff