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HomeMy WebLinkAbout02-4501ANN G. ISELIN and HARRY L. GARONZIK Plaintiffs VS. AFZAL H. CHAUDHRY and SAJID M. WARRAICH Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - LAW : NO. 02- 6/0'61 Civil Term : AT 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 fall 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. CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PENNSYLVANIA 17013 TELEPHONE: 717-249-3166 AMERICANS WITH DISABILITIES ACT OF 1990 The Court of Common Pleas of Cumberland County is required by law to comply with the Americans with Disabilities Act of 1990. For information about accessible facilities and reasonable accomodations available to disabled individuals having business before the court, please contact our office. All arrangements must be made at least 72 hours prior to any hearing or business before the court. You must attend the scheduled conference or hearing. SHERIFF'S RETURN - OUT OF COUNTY CASE NO: 2002-04501 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ISELIN ANN G ET AL VS CHAUDHRY AFZAL H ET AL R. Thomas Kline duly sworn according to law, and inquiry for the within named DEFENDANT CHAUDHRY AFZAL H but was unable to locate Him deputized the sheriff of ADAMS , Sheriff or Deputy Sheriff who being says, that he made a diligent search and in his bailiwick. County, serve the within COMPLAINT & NOTICE , to wit: He therefore Pennsylvania, to On October 9th , 2002 , this office was in receipt of the attached return from ADAMS Sheriff's Costs: Docketing Out of County Surcharge Dep Adams Co 18.00 9.00 10.00 29.30 .00 66.30 10/09/2002 PREY & TILEY SO answer~L~ R. Thomas Kli~ Sheriff of Cumberland County Sworn and subscribed to before me this //~-- day SHERIFF'S RETURN - REGULAR CASE NO: 2002-04501 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND ISELIN ANN G ET AL VS CHAUDHRY APZAL H ET AL CPL. MICHAEL BARRICK Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according To law, says, the within COMPLAINT & NOTICE was served upon WARP~AICH SAJID M The DEFENDANT at 1842:00 HOURS, on the 8th day of October , 2002 at 238 NORTH BALTIMORE STREET MT HOLLY SPRINGS, PA 17065 SAJID M WARRAICH 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 6.00 Service 4.14 Affidavit .00 Surcharge 10.00 .00 20.14 Sworn and Subscribed to before me this //~ day of ~ ~?~ A.D. ! PeS~h~Notary So Answers: R. Thomas Kline lO/O /2oo2 FREY & TILEY / ~ ~ Deputy ~'h-e~ i f f DATE RECEIVED MASON DIXON BUS NESS FORMS, {NC 33000026 SHERIFF'S DEPARTMENT ADAMS COUNTY, PENNSYLVANIA COURTHOUSE, GETTYSBURG, PA 17325 [] DATE PROCESSED SHERIFF SERVICE mST~O.S= See *'INSTRUCTIONS FOR SERVICE OF PROCESS BY THE SHERIFF" o~ the reverse of the last (No. 5) copy of this form. Please PROCESS RECEIPT, and AFFIDAVIT OF RETURN ~, 1. PLAINTIFF/S/ I 2. COURT NUMBER ~ G. ISI~IN and [-',~,¥ g CARONZIK I 02-4501 Civ~l Term ~ZA~ H. CHAUD[~¥ and SAJID H. ~A~I~ICH IC°m~la~nt: in Civil Action ~RVE s. H~E O~ ~NmWDU^L. CO~R^NV. COR~TION. ETC.. ~O S;.WC; OD ~st~ &? 11 McClellan Drive, F~st Berlin, PA 17316 7. INDICATE UNUSUAL SERVICE: [3 PERSONAL [3 PERSON IN CHARGE [] DEPUTIZE O CERT. MAIL [] REGISTERED MAIL O PO~¥~'U [] OTHER Now, , I, SHERIFF OF ADAMS COUNTY, PA., do hereby deputize the Sheriff of County to execute this Writ and make return therof according to law. This deputation being made at the request and risk of the plaintiff. ~.-.~m~ o; ~s COUN~ 8. SPECIAL INSTRUCTIONS OR OTHER INFORMATION THAT WILL ASSIST IN EXPEDITING SERVICE. NOTE ONLY APPLICABLE ON WRIT OF EXECUTION: N.B. WAIVER OF WATCHMAN--Any deputy sheriff levying upon or attaching any property under within writ may leave same without a watchman, in custody of whomever is found in possession, after ~otifylng person of levy or attachment, without liability on the part of such deputy er the sheriff to any plaintiff herein tor any loss, destruction or removal of any such property before sheriff's sale thereof. 9. SIGNATURE of ATTORNEY or other ORIGINATOR requesting service on behalf of: 10. TELEPHONE NUMBER ~ 11. DATE Robert G. Frey, Esq. I~PLAINTIFF [] DEFENDANT (717) 243-5838 SPACE BELOW FOR USE OF SHERIFF ONLY -- DO NOT WRITE BELOW THIS LINE 12. I ackno./.~t~..ev.~;~l of the writ I SIGNATURE of Authorized ACSD Deputy or Clerk and T~le 13. Date Sept. Received23? 2002 14. Expiration/Hearing date 17. Name and title of individual sewed 19. A~¢~ of where ~r~ (c~.,~p;=;= only if different than shown above) (Street or RFD, Apartment NO., City, Boro, Twp., State and ZIP CODE) RMV~RKS: Def. may be residing at 3~68 Andre~ Street, Apt. #303, Laurel, Maryland 20724 $150.00 Fm. Sher~ff #38278 ' $~9.30 Pd. 10/2/02 20. Date of Service 21. Time .Int, Date Mlle~ IDep.lnt. 28. $120.70 Ck. #8079 and eut~crtbed to before me this N/A AFFIRMED day of MY COMMI~IOfl EXPIRES SO ANSWER. ~ ~/(~'~ / ~. s~ ~,,~,~, P~t ~- ~r~, Richard S. Keefer RAYMOND W. NEWMAN ID~%/2/2002 D~0/2/2002 39. Date Received In The Court of Common Pleas of Cumberland County, Pennsylvania Ann G. Iselin f Harry L. Garonzik VS. Afzal H. Chaudhry & Sajid M. Warraich No. 2002 4501 civil Now, Sept. 19 ,2002, I, SHERIFF OF CLrMBERLAND COUNTY, PA, do hereby deputize the Sheriffof Adams County to execute this Writ, this deputation being made at the request and risk of the Plaintiff. Sheriff of Cumberland County, PA Affidavit of Service Now, ,20 , at o'clock M. served the within upon by handing to and made known to copy of the original So answers, the contents thereof. Sworn and subscribed before me this day of ,20 Sheriff of County, PA COSTS SERVICE MILEAGE AFFDAVIT ANN G. ISELIN and HARRY L. GARONZIK Plaintiffs VS. AFZAL H. CHAUDHRY and SAJID M. WARRAICH Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - LAW : : NO. 02- ~'~o/ Civil Term : : AT LAW COMPLAINT AND NOW, come Ann G. Iselin and Harry L. Garonzik Plaintiffs, by and through Frey & Tiley Attorneys at Law and respectfully states as follows: 1. Plaintiffs are Ann G. Iselin, an adult individual of 10802 North Sand Canyon Place, Tucson, Arizona 85737, and Harry L. Garonzik, an adult individual of 8035 South 116th Street, Seattle, Washington. 2. Defendants are Afzal H. Chaudhry, an adult individual of 11 McClellan Drive, East Berlin, Adams County, Pennsylvania, and Sajid M. Warraich, an adult individual of 238 North Baltimore Street, Mt. Holly Springs, Cumberland County, Pennsylvania. 3. Plaintiffs are the owners in fee simple and entitled to possession of mai property situate in the borough of Mt. Holly Springs, Cumberland County, Pennsylvania, known as 2 North Baltimore Street, by virtue of a deed from Eric N. Garonzik to Ann G. Iselin and Harry L. Garonzik, dated July 9, 1999 and recorded July 15, 1999 in Cumberland County Deed Book 203, Page 1019. 4. On or about May 1,2001, Plaintiffs, as owners, entered into an oral lease agreement with Defendants for the leasing of a one-story commercial building located at 2 North Baltimore Street, in the borough of Mt. Holly Springs, Cumberland County, Pennsylvania and known as or formerly known as Hughes Supermarket. Defendants agreed to pay rent to Plaintiffs in the original amount of $3,750.00 per month, and an increased amount of $3,900.00 per month, beginning October 1, 2001. Defendants agreed to pay all real estate taxes applicable to the leased premises at the rate of eighty (80%) percent of all real estate taxes applicable to the total property. Defendants agreed to pay all charges for utilities used upon the leased premises. 5. Defendants further agreed to pay to Plaintiffs amounts owed by the prior lessee of the premises in the amount of $2,948.93. 6. Plaintiffs and Defendants memorialized the terms of the lease agreement in the form of a lease signed by Plaintiffs and Defendants, a copy of which is attached hereto and incorporated herein by reference as Exhibit "A". Defendants agreed to deliver said lease to Plaintiffs upon their payment of the amounts owed by the prior tenant in the amount of $2,948.93. 7. Defendants never made payment to Plaintiffs of the amounts owed by the prior tenant and, therefore, Plaintiffs have never delivered an executed lease to Defendants. 8. Defendants occupied the premises and began making monthly payments of rent pursuant to the oral lease agreement. 9. Defendants have breached the terms of the oral lease as stated above by failing to pay monthly rental payments as itemized below: June, 2002 rent July, 2002 rent August, 2002 rent September, 2002 rent Total rent now due $3,750.00 3,750.00 3,750.00 3.750.00 $15,000.00 10. Defendants have breached the terms of the oral lease as stated above by failing to pay their agreed share of the real estate taxes as itemized below: 2001 -2002 School Real Estate taxes, due 8/31/01 2002 County and Borough Real Estate taxes, due 4/30/02 2002 -2003 School Real Estate taxes, due 8/31/02 Total Real Estate taxes due $5,101.30 1,963.02 $5,101.30 $12,165.62 11. Defendants have breached the terms of the oral lease as stated above by failing to pay water and sewer bills for the leased premises as itemized below: Water bill, 3/26/02-6/24/02 $582.78 Sewer bill, 3/26/02-6/24/02 269.29 Total Water and Sewer bills owed $852.07 12. Defendants have breached the terms of the oral lease as stated above by failing to pay the amount owed by the prior tenant in the amount of $2,948.93. 13. Written notice of Defendants' default and demand for payment was given to them by letter from Plaintiffs' attorney, but Defendants failed to make any payment on the amounts owed. 14. Defendants now owe Plaintiffs for their occupancy of the leased premises as follows: Total rent now due Total Real Estate taxes due Total Water and Sewer bills owed Balance owed by prior tenant Total owed $15,000.00 $12,165.62 $852.07 $2,948.93 $30,966.62 WHEREFORE, Plaintiff respectfully requests judgment in favor of Plaintiff and against Defendant in the amount of $30,966.62, plus interest at the legal rate from the date each payment was due, additional amounts owing after the filing of the Complaint to the date of judgment pursuant to the lease, court costs, and such other relief as the Court may deem proper. Respectfully submitted, Frey & Tiley, Attorneys for Plaintiff Robert G. Frey, Esquire Supreme Court Number 46397 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838 I verify that the statements made herein are tree and correct and understand that false statements herein are made subject to the penalties of 18 Pa. C. S. A. § 4904 relating to unswom falsification to authorities. Dated: September/~ , 2002 Lease: Iselin & Garonzik./Chaudhrv & Warraich LEASE AGREEMENT Page 1 THIS LEASE AGREEMENT is made and entered into by and between ANN G. ISELIN, of 10802 N. Sand Canyon Place, Tucson, AZ 85737; and HARRY L. GARONZIK, of 8035 South 116th Street, Seattle, WA 98178; with mailing address in care of Ann G. Iselin, 10802 North Sand Canyon Place, Tucson, AZ 85737, hereinafter referred to collectively as "Lessor", AND AFZAL H. CHAUDHRY of 11 McClellan Drive, East Berlin, PA 17316; and SAJID M. WARRAICH of 11 McClellan Drive, East Berlin, PA 17316, with mailing address for all three of them of 11 McClellan Drive, East Berlin, PA 17316, hereinafter collectively referred to as "Lessee" and is as follows: WI-IEREAS, Lessee is in the business of operating grocery supermarkets with related activities and; WI-IEREAS, Lessee desires to lease from Lessor a certain tract of real property as more fully described below, with the improvements thereon erected; and WHEREAS, Lessor desires to lease the said tract of real property to Lessee under the terms, conditions and provisions as set out herein; NOW THEREFORE, for and in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by both parties, it is agreed as follows: ARTICLE I DEMISE OF LEASED PREMISES 1.01. Leased Premises. Lessor for and in consideration of the rents, covenants and conditions herein contained to be kept, performed and observed by Lessee, does lease and demise to Lessee, and Lessee does rant and accept from Lessor, the mai and personal property, referred to heroin as "Leased Premises", formerly known as Hughes Supermarket, located on the northern and western portions of a larger tract of land situate in the Borough of Mount Holly Springs, Cumberland County, Pennsylvania, which larger tract of land is bounded and described as follows: On the South by Pine Street; on the West by Baltimore Avenue; on the North by Harman Alley; and on the East by Mountain Creek, on which larger tract of land there is erected the store building formerly occupied by Hughes Supermarket and adjacent parking area, and in addition adjoining the same on the south and east are the premises known as Dolly's Washhouse and Car Wash. The former Hughes Supermarket has the mailing address of Two North Baltimore Avenue, Mt. Holly Springs. The portion of the promises known as Dolly's Washhouse and Car Wash is NOT included in the leased premises. 1.02. Lessor's Warranty of Title. Lessor hereby represents and warrants that Lessor is Lease: Iselin & Garonzik./Chaudhry & Warraich Page 2 the owner in fee simple absolute of the Leased Premises subject to covenants, conditions, restrictions, easements and other matters of record or on the ground. 1.03. Lessor's Warranty of Quiet Enjoyment. Lessor covenants and agrees that Lessee on paying the rent and other charges herein provided for and observing and keeping the covenants, conditions and terms of this Lease on Lessee's part to be kept or performed, shall lawfully and quietly hold, occupy and enjoy the Leased Premises during the term of this Lease without hindrance or molestation of Lessor or any person claiming under Lessor. 1.04. Lessor's Right to Mortgage. Lessor does not have a current mortgage, or other lien, against the Leased Promises. Lessor reserves the right to encumber the property further in any amounts as Lessor in its sole discretion shall decide. Should Lessor default in making any payment on any such mortgage or encumbrance Lessee shall have the right to make such payment and deduct the amount paid from rent due or to become due under this Lease. ARTICLE II LEASE TERM f? · 17 ~oo~ 2.01. Term. The term of this Lease shah ........ c .:~x..~r c .....r .....cf five beginning Oct:b:r l, 2900, ~d continuing t~ough September 30, 2005- 2.02. Holdover. If Lessee shall hold over after the expiration of the Lease Term, with the consent of the Lessor, such tenancy shall be deemed an exercise of the option to extend this lease as set forth in paragraph 2.04 herein. 2.03, Lease Year. The term Lease Year shall mean any twelve month period beginning on the Beginning Date or an anniversary of the Beginning Date. 2.04. Option to Extend Lease. If this Lease is still in force and effect on September 30, 2005, in such event the Lessee shall have the right and option to extend tiffs Lease for five (5) one- year periods beginning October 1, 2005 and thereafter on October 1 of each year through September 30, 2010, on the same terms and conditions as herein set forth except that the rate of rent .for each additional year beginning October I, 2005 shall be at the rate of $4,200.00 per month increased by the percent of increase in the Consumer Price Index compiled by the United States government, for all urban consumers (CPI-U) all items, by the percentage of increase in said Index from October 1, 2000 to October 1, 2005 and from October 1, 2000 to October 1 of each additional lease year until the fifth and final one-year extension beginning October 1, 2009 through September 30, 2015, but if such Index is no longer maintained by the United States government then the rate of increase shall be determined to be as nearly equal to the amount of increase which that Index would have indicated had it still been maintained. ARTICLE HI RENT, TAXES, AND UTILITIES 3.01. Rate of Rent. So long as this Lease remains in force, Lessee agrees to pay to Lessor as rent for the Leased Premises the sum of Three Thousand Seven Hundred Fifty and Lease: Iselin & Garonzik./Chaudhrv & Warraich ~t] l:~3'J-rmJ, ng Y'~y 1~01 Page 3 no/100 ---($3,750.00) --- Dollars per month, in advance .................. ~ .... ~,...mng Oc~.cks:' -I, 20~9, and at the rate of $3,900.00 per month ~ beginning October 1, 200i, and at the rate of $4,000.00 per month ~ beginning October 1, 2002, and ........... j .... are at the rate of $4,100.00 per month beginning October 1, 2003, and fifth Icr.;:~ ye&- at the rate of $4,200.00 per month beginning October 1, 2004, until and including ,~A ~,~.~. __~ Ac ~ ~..4,~;.,~ r, ...... ~ t~,-~ ~,,o*.~ ..... September 1, 2005 for the fmai month ending September 30, 2005. 3.02. Lessor to Pay Taxes. Lessor agrees to pay all real property taxes, special taxes, or assessments, including street improvement liens or assessments, if any, levied or assessed upon or against the Leased Premises and any improvements or fixtures erected or situate thereon, during the Lease Term. Lessee agrees to pay ail property taxes on its personai property located on the Leased Premises. Until such time as the Leased Premises occupied by Dolly's Washhouse and Car Wash are separately assessed from the adjoining grocery store and adjacent parking area, Lessee shail pay eig. hty (80%) percent of ail reai estate taxes applicable to the totai property as the totai property now exasts (should any improvements be made which cause an increase in the assessment, the taxes attributable to such increased assessment shall be paid by the tenant who possesses such improvements). At such time as the property which constitutes the demised or leased premises is separately assessed, Lessee shail thereafter pay ail of the taxes attributable to the property constituting the leased premises herein and the remainder of the taxes attributable to the other property now occupied by PAC Industries, Inc. shail be paid by Lessor. Lessee shall pay its share of the taxes as set forth herein to the Lessor no later than five (5) days prior to the expiration of the discount period for paying same and Lessor shail thereafter immediately pay to the Tax Collector all taxes due on the leased premises and any other property assessed against Lessor of which the Leased Premises are a part. 3.03. Installment Payment. In the event any special tax or assessment is levied or assessed on the Leased Premises which becomes due and payable during, and the delinquency date for which fails within, the Lease Term, or any extension, which tax or assessment may be legally paid in instailments, Lessee shail have the option to pay such tax or assessment in instailments. 3.04. Excluded Taxes. Lessee shall not be required to pay any franchise, estate, inheritance, succession, capitai levy or transfer tax of Lessor, or any income, excess profits, or revenue tax, or any other tax, assessment, charge, or levy upon the rent payable by Lessee under tiffs Lease, and ail such taxes, assessments, charges and levies shail be payable by Lessor. Lessor shail not, without consent of Lessee, do any act which will cause the taxes and assessments on the Leased Premises to be increased. 3.05. Contest. Lessee shall have the right to contest the assessment, account or vaiidity of any tax which is Lessee's obligation under the terms of this Lease by appropriate legai proceedings. Lessor shail, upon request, join in any such proceedings if Lessee determines that it shail be necessary or convenient for Lessor to do so in order for Lessee to prosecute such proceedings properly. 3.06. Utility Charges. Lessee shail pay or cause to be paid all charges for water, heat, gas, electricity, sewers, and any and all other utilities used upon the Leased Premises throughout the term of this Lease, including any connection fees. Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 4 ARTICLE IV USE OF PREMISES 4.01. Permitted Use. Lessee shall have the right to use the Leased Premises for the continuation of its business of a supermarket and related activities for which it is currently being used, and for any and all natural extensions or renovations of those uses. All uses described in this Section shall be permitted, but none shall be required, except as set forth in section 4.04 of this Agreement. 4.02. Signs. Lessee shall have the right to erect and maintain upon the improvements and on the Leased Premises such signs as it deems appropriate to the conduct of its business. Lessee shall have no right to erect or maintain any sign used for the purpose of advertising any business, activity, or position other than the business or businesses of Lessee carried on on the Leased Premises. Each sign erected shall comply with any requirements imposed by the Borough of Mount Holly Springs or other governmental authority. 4.03. Waste and Nuisance. Lessee shall not commit, or suffer to be committed, any waste on the Leased Premises or any improvements erected or situate thereon, nor shall it maintain, commit, or permit the maintenance or commission of any nuisance on the Leased Premises or use the Leased Premises or improvements for any unlawful purpose. 4.04. Illegal Activity. Lessee shall not engage in, permit, nor suffer anyone else to perm/t, any illegal or criminal activity or status to be carried on or exist at the premises. Should Lessee not cease any such illegal or criminal activity, or correct any such illegal or criminal status, then Lessee shall be in default and Lessor shall be entitled to the remedies set forth at section 11.01 of this Agreement upon giving the thirty (30) day notice provided for therein. 4.05. Arbitration. Any dispute between Lessor and Lessee as to what constitutes a permitted or prohibited use, or waste or nuisance, all as provided in this Article IV of this Agreement, shall be submitted to arbitration as hereinafter provided for. ARTICLE V LESSEE IMPROVEMENTS AND PROPERTY 5.01. Ownership of Lessee Improvements. All fixtures, and any replacements of existing personal property, installed in or placed upon the Leased Premises by Lessee, shall be and remain the property of Lessee. ARTICLE VI RIGHT OF FIRST REFUSAL AND TRANSFER 6.01. Transfer. In the event of any proposed transfer of any interest in the Leased Premises by Lessor after April 30, 2001 (a right of first refusal is presently held by PAC Industries, Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 5 Inc., which right expires on May I, 2001), Lessee shall have the right of first refusal to purchase on the same terms and conditions as offered by or to the proposed transferee, Provided However, that this Right of First Refusal shall not apply to any transfer to a person who is related by blood or marriage to the Lessor. The right of first refusal must be exemised, in writing, with ten (10) business days after receipt of written notices of the proposed transfer (to include all terms and conditions thereof and the identity of the proposed transferee), with settlement to take place with ninety (90) days thereafter. Should any of the terms or conditions of any proposed transfer involve circumstances other than the amount and timing of monetary payments, then Lessee may provide the reasonable equivalent thereof in cash. This right of first refusal in Lessee is conditioned upon this Lease being in full fome and effect at the time of any such proposed transfer, but if this Lease has expired or is in default at the time of any such proposed transfer then this right of first refusal shall be of no fome or effect. 6.02. Transfer. In the event of any proposed or completed transfer of any interest in the Leased Premises by Lessor, Lessee a~ees to be bound by the terms of this Lease to the new owner. ARTICLE VII REPAIRS AND RESTORATION 7.01. Lessee's Duty to Repair. Lessee, at Lessee's own cost and expense at all times during the term of this Lease, agrees to keep and maintain, or cause to be kept and maintained, all buildings and improvements erected upon the Leased Premises in a good state of appearance and repair, reasonable wear and tear excepted. 7.02. Repairs to Sidewalk and Parking Area. Lessee, at Lessee's own cost and expense at all times during the term of this Lease shall pay eighty (80%) per cent of the cost for repair or improvement of the sidewalk along Pine Street extending from North Baltimore Avenue eastward and shall pay eighty (80%) per cent of the cost of repairing or improving the portion of the parking area which is shared with the operator of Dolly's Washhouse and Car Wash and shall pay 100% of the cost of repairing or improving the poffion of the parking area which is appurtenant to the former Hughes Supermarket which is now known as King's Market building which is erected on the Leased Premises and used exclusively by Lessee. Lessee shall in addition pay 100% of the cost of repairing or improving the sidewalk along North Baltimore Avenue between Pine Street and Harman Alley. 7.03. Sixty Percent Damage - Termination Option. If, by fire, flood, explosion, public enemy, riot, civil commotion, or act of God the premises during the term shall be damaged in excess of sixty (60%) pement, this Lease, at the option of Lessee, to be exercised by notice to Lessor in writing, shall cease and terminate. The term "damaged in excess of sixty (60%) percent" shall be construed to mean such damage to the buildings or improvements occupied by Lessee (excluding damage caused solely by water used in extinguishing fire), as will require an expenditure in excess of sixty (60%) pement of the market value (prior to the damage) of the buildings or improvements, in order to make repairs. [.ease: Iselin & Garonzik./Chaudhry & Warraich Page 6 7.04 Removal of Ice, Snow, and Debris. Lessee, at Lessee's own cost and expense at all times during the term of this Lease shall keep the sidewalk along the east side of North Baltimore Avenue extending from Pine Street northwardly to Harman Alley, free of ice, snow and debris and shall likewise keep the paved areas which are a part of the Leased Premises free of ice, snow and debris. 7.05. Damage Less than Sixty Percent - Repairs. If, by fire, flood, explosion, public enemy, riot, civil commotion, or act of God the premises during the term, shall be damaged to an extent less than sixty (60) pement (or in excess of sixty (60) percent and Lessee shall not exercise its option to terminate this Lease) Lessee shall repair (with Lessee's funds or any insurance funds) the premises with due diligence, and this Lease shall continue in full force and effect. 7.06. Inspection by Lessor. Lessee shall permit Lessor and its agents to enter into and upon the Leased Premises and any improvements erected thereon at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining or malting repairs to the ~mprovements which Lessor elects to do pursuant to this Article. 7.07. Delivery of Property. Lessee shall throughout the Lease Term maintain the Leased Premises and all improvements erected or situate thereon as provided in section 7.01 of this Agreement and shall, at the termination of this Lease, dehver up the premises in a clean and sanitary condition in substantially the same condition that existed on the Beginning Date, reasonable wear and tear, damage by the elements, acts of God, war and any act of war, excepted, Provided, However, that any insurance proceeds for any such casualty not used to repair or replace the Leased Premises or improvements shall be paid over to the Lessor and Lessee shall be responsible to Lessor for any deficiencies in insurance or lack of coverage or deductible. 7.08. Lessoffs Right to Repair. In the event Lessee should neglect to reasonably maintain the Leased Premises and all improvements erected or situate thereon, Lessor shall have the right, but not the obligation, to cause repairs or corrections to be made, and any reasonable costs therefore shall be payable by Lessee to Lessor as additional rental on the next monthly rental payment due after notice from Lessor to Lessee of the cost of such repairs or corrections, Provided However, that prior to making or causing to be made any such repair, maintenance, or corrections, Lessor shall give Lessee thirty (30) days written notice, within which time Lessee shall have the opportunity to perform such repairs, maintenance, or corrections, or object to the necessity or desirability of such repair, maintenance, or corrections, and if Lessor and Lessee shall be unable to agree on the extent of repairs, maintenance, or corrections to be made, if any, within thirty (30) days following notice of such objection, then the dispute shall be submitted to arbitration as provided in section 7.07 of th.is Agreement. 7.09. Arbitration. Any dispute between Lessor and Lessee as to what constitutes sufficient repair and ma/ntenance shall be submitted to arbitration as hereinafter provided for. ARTICLE VIII MECHANIC'S LIENS Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 7 8.01. Prohibition of Liens on Fee or Leasehold Interest. Lessee shall not suffer or permit any mechanic's liens or other liens to be filed against the fee of the Leased Premises nor against Lessee's leasehold interest in the Leased Premises, by reason of any work, labor, services or materials supplied or claimed to have been supplied to Lessee or anyone holding the Leased Premises or any part thereof through or under Lessee. 8.02. Removal of Liens by Lessee. If any such mechanic's liens or material man's lien shall be recorded against the Leased Premises, or any improvements thereof, Lessee shall cause the same to be removed or, and in the aitemarive, if Lessee in good faith desires to contest the same, Lessee shall be privileged to do so but in such case Lessee hereby agrees to insure, defend, indemnify and save Lessor harmless from ail liability for damages occasioned thereby and shall, in the event of a judgment of foreclosure upon said mechanic's lien, cause the same to be discharged and removed prior to the execution of such judgment. ARTICLE IX CONDEMNATION 9.01. Interests of Parties on Condemnation. In the event the Leased Premises or any part thereof shail be taken for public purposes by condemnation as a result of any action or proceeding in eminent domain, or shall be transferred in lieu of condemnation to any authority entitled to exercise the power of eminent domain, the interests of Lessor and Lessee in the award or consideration for such transfer and the effect of the taking or transfer upon this Lease shall be as provided by this Article. 9.02. Total Taking - Termination. In the event the entire Leased Premises is taken or so transferred, this Lease and all of the right, ritle, and interest thereunder shall cease on the date title to such Leased Premises vests in the condemning authority, and the proceeds of such condemnation shall he divided as follows: (a) Lessee shall receive any and all awards for the unexpired Lease Term, plus moving expenses, and any other sums to which a Lessee would be properly and lawfully entitled (except any awards or proceeds allocated pursuant to sub-section (b) hereafter). (b) Lessor shail receive all of the said other condemnation proceeds. 9.03. Partial Taking - Termination. In the event of the taking or transfer of only a part of the Leased Premises leaving the remainder of the premises in such location, or in such form, shape, or reduced size as to be not effectively and practicably usable for the purpose of operation thereon of Lessee's business, this Lease and all right, title, and interest thereunder shall cease on the date title to the Land or the portion thereof so taken or transferred vests in the condemning authority. On or before the date of said vesting in the condemning authority, Lessee shall notify Lessor that it considers the partial taking to render the Leased Premises practicably unusable in its opinion and that it wili consider the Lease to be terminated upon said vesting. Should Lessor disagree with Lessee's determination that the taking renders the Leased Prerrfises practicably unusable, Lessor shall in mm notify Lessee within twenty (20) days of receipt of Lessee's notice and thereafter the matter may be submitted by either of the parties to arbitration as hereinafter Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 8 provided. The proceeds of such condemnation shall be divided according to the provisions of section 9.02 of this Lease. 9.04. Partial Taking - Continuation With Rent Abatement. In the event of a taking or transfer of only a part of the Leased Premises, leaving the remainder of the premises in such location and in such form, shape, or size as to be used effectively and practicably in the opinion of the Lessee for the purpose of operation thereon of Lessee's business, this Lease shall terminate and end as to the portion of the premises so taken or transferred as of the date title to such portion vests in the condemning authority, but shall continue in full force and effect as to the portion of the Leased Premises not so taken or transferred. From and after such date, the rental required to be .paid by Lessee to Lessor shall be reduced in the proportion to which the value of the area and ~mprovements so taken or transferred bears to the total value of the area and improvements of the Leased Premises and easement area. The proceeds of such condemnation shall be divided according to the provisions of section 9.02 of this Lease. 9.05. Voluntary Conveyance. A voluntary conveyance by Lessor to a public utility, agency, or authority under threat of a taking under the power of eminent domain in lieu of formal proceedings shall be deemed a taking within the meaning of this Article IX. 9.06. Arbitration. If any condemnation award does not distinguish between the classes of property and interests as described in section 9.02 of this Agreement, the parties shall negotiate and agree as to such allocation and, failing such a~eement within forty-five (45) days, the matter shall be subrnltted to arbitration. ARTICLE X ASSIGNMENT AND SUBLEASE 10.01. Consent of Lessor Required. Lessee, or any subsequent Lessee, may assign, convey or transfer Lessee's interest in this Lease and the leasehold estate created hereby, or a portion of said interest, only with the written consent of Lessor to such assignment, which consent shall not be unreasonably withheld but which consent may be conditioned upon the Lessee guaranteeing payment and compliance with the requirements of this Lease Agreement by the Lessee's transferee. ARTICLE XI DEFAULT AND REMEDIES 11.01. Default by Lessee. If Lessee shall allow any monthly rent to be in arrears for a period of thirty (30) days after written notice from Lessor, or shall remain in default under any other condition of this lease for a period of thirty (30) days after written notice from Lessor, or should any other person than Lessee secure possession of the premises, or any part thereof, by operation of law in any manner whatsoever, Lessor may at its option, without notice, or further notice, to Lessee: Lease: Iselin & Garonzik./Chaudhry & Warraich Page 9 (a) Terminate this lease and recover from Lessee damages as provided for in this section 11.01 of this Agreement, or (b) Continue to hold the Lessee obligated to this Lease and recover by suit or otherwise from the Lessee any and all damages, including all rent due for the remainder of the Term, or (c) Enter upon the Leased Premises and any improvements erected or situate thereon to cause repairs or corrections to be made, or correct or rectify any breach and any reasonable costs therefore shall be payable by Lessee to Lessor as additional rental on the next monthly rental payment due after notice from Lessor to Lessee of the cost of such actions, or (d) Otherwise satisfy the breach of Lessee's duty or obligation by the payment of money due or the taking of action and any reasonable costs thereof shall be payable by Lessee to Lessor as additional rental on the next monthly rental payment due after notice from Lessor to Lessee of the cost of such actions, or, (e) Reenter and take possession of said premises and remove all persons and property therefrom, without being deemed guilty of any manner of trespass, and relate the premises or any part thereof, for all or any part of the remainder of said term, to a party satisfactory to Lessor, and at such monthly rental as Lessor may with reasonable diligence be able to secure. Should Lessor be unable to relate after reasonable efforts to do so, or should such monthly rental be less than the rental Lessee was obligated to pay under this lease, plus the expense of reletting, then Lessee shall pay the amount of such deficiency to Lessor, or (f) Avail itself of any other remedy at law or equity. The said rights and remedies of Lessor shall be cumulative and not in the alternative. Lessor shall have the right to effect the remedies set forth in sub-section (c) and (d) of this section 11.01 of this Lease upon less than thirty (30) days notice if a shorter period is required so as to prevent irreparable injury to the Leased Premises or the motel and restaurant business conducted thereon. 11.02. Landlord's Lien - Sale of Lessee's Property. It is expressly agreed that in the event of default by Lessee hereunder, Lessor shall have a lien on all goods, chattels, or personal property of any description belonging to Lessee which are placed in, or become a part of, the Leased Premises, as security for rent due and to become due for the remainder ot: the current Lease Term, which lien shall not be in lleu of or in any way affect the statutory Lessor's lien given by law, but shall be cumulative thereto; and Lessee hereby grants to Lessor a security interest in all such personal property placed in or on said Leased Premises for such purposes, Provided However, that no security interest or Financing Statement shall be filed nor shall such lien be perfected in any manner, until default by Lessee and thirty (30) days written notice from Lessor to Lessee of Lessor's intent to so file or perfect. This shall not prevent the sale by Lessee of any merchandise or inventory in the ordinary course of business free of such lien to Lessor. In the event Lessor exercises the option provided in sub-sections (a), (b), (e), or (f) of section 11.01 of this Agreement, Lease: Iselin & Garonzik./Chaudhry & Warraich Page 10 then Lessor may take possession of ali of Lessee's property on the Leased Premises and sell same at public or private sale after giving Lessee reasonable notice of the time and place of any public sale or of the time after which any private sale is to be made, for cash or on credit, or for such prices and terms as Lessor deems best, with or without having the property present at such sale. The proceeds of such sale shall be applied first to the necessary and proper expense of removing, storing, and selling such property, then to the payment of any rent due or to become due under tiffs Lease, or any damages as calculated under section 11.01 or 11.02 of tiffs Agreement, with the balance, if any, to be paid to Lessee. The provisions of this section shall not prevent, nor shall they prohibit, the Lessee or its Operation Manager from disposing of any assets free and clear of any lien provided for in tiffs section, until such time as the said lien should be perfected. 11.03. Remedies Cumulative. All rights and remedies of Lessor under this Lease shall be cumulative, and none shall exclude any other right or remedy at law. Such rights and remedies may be exercised and enfomed concurrently and whenever and as often as occasion therefore arises. 11.04. Mitigation of Damages. In the event of any default, Lessee shall be given credit against any damages, for any rent actually received upon the re-rental of the Leased Premises by the Lessor. ARTICLE XII TERMINATION AND SURRENDER 12.01. No Right to Terminate. Neither Lessor nor Lessee shall have the right to terminate this Lease for any reason during the Lease Term except as specifically provided in this Agreement. 12.02. Automatic Termination. Tiffs Lease shall automatically terminate at the end of the Lease Term. 12.03. Surrender of Possession. Unless otherwise mutually agreed in writing by the parties prior to the termination of the Lease, either pursuant to section 12.02 or any option expressly provided for in sections of this Agreement, Lessee agrees to redeliver possession of the Leased Premises, and the improvements, fixtures and property thereon which are to become the property of the Lessor pursuant to section 5.01 of tiffs Agreement, in substantially the same condition that existed on the Beginning Date, reasonable wear and tear, damage by the elements, acts of God, war and any act of war, excepted, all as provided in section 7.05 of tiffs Agreement. 12.04. Other Acts and Effects of Termination. Upon Termination: (a) If appl!cable, all financing statements and mortgages executed by Lessor or Lessee shall be satisfied, terminated and released in full by Lessee, (b) Tiffs Agreement shall be of no further force and effect except as to those rights, obligations and remedies as may have arisen prior to termination or which may arise thereafter as a result of acts or events occurring prior to termination. Lease: Iselin & Garonzik./Chaudhrv & Warraich ARTICLE XIII Page 11 WARRANTIES, INDEMNITY, LIABILITY & INSURANCE 13.01. Indemnity of Lessor. Lessee agrees to insure, defend, indemnify and hold Lessor harmless against any and ail claims, demands, damages, costs and expenses, including attorney% fees for the defense thereof, arising from the conduct or management of Lessee's business at the Leased Premises, or from any breach on the part of Lessee of any conditions of this Lease, or condition created by the Lessee, or from any act or negligence of Lessee, its agents, contractors, employees, subtenants, concessionaires, or licensees in or about the Leased Premises, or in connection with any accident, personal injury or damage to personal property arising from or out of any occurrence in, upon or at the Leased Premises during the Lease Term, unless same shail result on account of any negligence on the part of Lessor. In case of any action or proceeding brought against Lessor by reason of any such claim, Lessee, on notice from Lessor, covenants to defend such action or proceeding by counsel acceptable to Lessor. 13.02. Insurance. Lessee agrees that at ail times during the Term of this Lease or any extensions, it shail keep in effect a policy of public liability and property damage insurance issued by a reliable insurance company with reasonable limits of liability and naming the Lessor and Lessee herein as the insureds, insuring them against any and ail claims of personai injury or property damage arising from the demised premises or activities thereon, and in addition the Lessee shall keep in effect fire insurance with extended coverage issued by a reliable insurance company in an amount equal to 100% of the insurable value of the Leased Premises, naming the Lessor and Lessee herein as insurers and in addition Lessee shall carry f~:e legai liability insurance, and improvements and betterments insurance in such amounts as the parties may agree to from time to time, or, failing such agreement, in reasonable amounts determined by arbitration. All said insurance policies shail provide for the payment for any losses to either Lessor or Lessee, as their interest may appear under this Lease. 13.03. Insurance - Proof of Coverage. The original policies may be retained by the insured, but the other party shail have the right to inspect and copy any and all such policies, and Lessee, on demand, agrees to furnish the Lessor with proof of payment of the premium or premiums on any pohcies provided for in this Agreement. 13.04. Other Insurance. Lessee shall not obtain any other insurance on any property or matter which is the subject of this Agreement without aiso naming Lessor as an additional insured as their interests may appear. 13.05. Insurance. Protection Against Cancellation. Each insurance policy provided for in this Agreement shail expressly provide that the policy shail n'~t be canceled or aitered without thirty (30) days' prior written notice to the other party. 13.06. Insurance - Failure to Secure. If Lessee at any time during the Term hereof should fail to secure or maintain the foregoing insurance, Lessee shail be in default under the terms of this Agreement, and Lessor shail have the right but not the obligation, to obtain such insurance in Lessee's name or as the agent of the Lessee, and any reasonable costs therefore shall be payable by Lessee to Lessor as additionai rentai on the next monthly rental payment due after notice from Lessor to Lessee of the cost of such insurance. Lease: Iselin & Garonzik./Chaudhrv & Warra ch Page 12 13.07. Compliance with Insurance Requirements. Lessee, at its sole cost, shall effect compliance with all requests of any fire insurance carrier of Lessee or Lessor concerning Leased Premises or operations modifications. All insurance proceeds received by any party hereto arising out of damage to the property shall be utilized for the prompt restoration of the property to its preexisting, or better, condition. ARTICLE XIV ARBITRATION 14.01. Agreement to Submit. In the event Lessor and Lessee cannot agree on any point in tiffs Lease that is expressly subject to arbitration, or should they hereafter stipulate in writing that any dispute between them be submitted to arbitration, such controversy between the parties involving rights and obligations arising under the terms of tiffs agreement is subject to arbitration, except controversies involving less than $2,500.00, Provided However, that either party shall have the right to appeal any arbitration award to Court, de novo. The arbitration shall comply with and be governed by the provisions of this agreement and the Pennsylvania Uniform Arbitration Act, Sections 7301 through 7320 of Title 42 of the Pennsylvania Consolidated Statutes. 14.02. Demand for Arbitration. In the event Lessor and Lessee cannot agree on any point in this Lease that is expressly subject to arbitration, either party may make a demand for arbitration by filing a demand in writing with the other by notice. 14.03. Appointment of Arbitrators. The parties may agree on one arbitrator. However, if they cannot so agree, three arbitrators shall be appointed as follows: Within twenty (20) days of a Demand for Arbitration, each party shall name one arbitrator in writing and give notice to the other party of the name and address of the arbitrator. In case of the failure of either party hereto to name an arbitrator the other party shall have the right to apply to the Court of Common Pleas for the County of Cumberland, Pennsylvania, to appoint an arbitrator to represent the defaulting party. The two arbitrators thus appointed (in either manner) shall select and appoint in writing a third arbitrator and give written notice to Lessor and Lessee, or if within twenty (20) days after the appointment of said second arbitrator, the two arbitrators shall fail to appoint a third, then either party hereto shall have the right to make application to the Court of Common Pleas for the County of Cumberland, Pennsylvania, to appoint such third arbitrator. 14.04. Qualifications of Arbitrators. All of the arbitrators appointed must have no financial or personal interest in the result of the arbitration. 14.05. Vasancies and Substitutions. If an appointed arbitrator fails to act or is unable to act, the parties may appoint a successor as follows: whether or not a single arbitrator was chosen initially, the parties may agree on another single arbitrator; or if the parties can not agree on a single arbitrator, the successor shall be appointed by the party or by the arbitrators who selected the arbitrator who is no longer participating. If the method provided in this section 14.05 or section 14.03 of this Agreement fails or cannot be followed, one or more arbitrators may be appointed by a court having jurisdiction on application of either party. 14.06. Time and Place of Hearing. All arbitration hearings conducted under tiffs Lease: Iselin & Garonzik./Chaudhry & Warraich Page 13 agreement shall take place in Cumberland County, Pennsylvania. The arbitrators shall set the time and place of the arbitration hearings, and they shall deliver to each party by personal service or registered mail written notice stating the time, location, and subject matter of the arbitration hearing. 14.07. Powers of Arbitrators. The arbitrators shall have the power to: decide all procedural issues; interpret and determine questions of both law and fact; base conclusions on their reading of the Agreement; adjourn or postpone the hearing for good cause to a time not later than the date for making the award unless the parties consent to a later date; and hear and determine the controversy on the evidence presented even though a duly notified party falls to appear. All powers of the arbitrators shall be exercised only by a majority of the arbitrators. 14.08. Evidence. The arbitrators may issue subpoenas for the attendance of witnesses and the production of other evidence, permit depositions to be taken of witnesses who cannot be served with a subpoena or who cannot attend the hearing, and administer oaths as provided by law. 14.09. Award. The arbitration award shall be binding if made by a majority of the arbitrators. It shall be in writing and signed by the arbitrators joining in the award. The arbitrators shall deliver a copy of their award to each party by the methods provided for notice by one party to another in this Agreement. The award shall be made within ninety (90) days from the date of the appointment of the last arbitrator unless the parties consent in writing to extend this period before or after it expires. The award may be conf'm-ned by any court having jurisdiction on application of either party. 14.10. New Arbitrators. If the arbitrators appointed pursuant to section 14.03 of this Agreement fall to make an award within ninety (90) days from the date of the appointment of the last arbitrator, they shall be discharged unless the parties consent in writing to extend this period. New arbitrators (or an arbitrator) shall be appointed and shall proceed in the same manner as specified in this Agreement. The process shall be repeated until a final award is made by a single arbitrator or a majority of the arbitrators. 14.11. Costs of Arbitration. The costs and expenses of arbitration, including the fees of the arbitrators and any attorney's fees, shall be paid by the loosing party or by both parties in the proportions determSned by the arbitrators in their award. ARTICLE XV THIRD PARTY BENEFICIARIES 15.01. No Third Party Beneficiaries. It is the intention of the parties hereto that no provision of this Lease shall in any way inure to the ~enefit of any third person (including the public at large) so as to constitute any such person a third party beneficiary of such Agreement or of any one or more of the terms thereof or otherwise give rise to any cause of action in any person not a party to such Agreements. ARTICLE XVI GENERAL PROVISIONS Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 14 16.01. Conditions and Covenants. Ail of the provisions of this Lease shall be deemed as running with the land, and construed to be "conditions" as well as "covenants" as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. 16.02. No Waiver of Breach. No failure by either Lessor or Lessee to insist upon the strict performance by the other of any covenant, agreement, term, or condition of this Lease or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such covenant, agreement, term, or condition. No waiver of any breach shall affect or alter this Lease, but each and every covenant, condition, agreement, and term of this Lease shall continue in full rome and effect with respect to any other then existing or subsequent breach. 16.03. Time of Essence. Time is of the essence of this Lease, and of each provision. 16.04. Computation of Time. Except where this Lease gives a date upon which an act is to be performed, the time in which any act provided by this Lease is to be done is computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or legal holiday, and then it is also excluded. 16.05. Successors in Interest. Each and all of the covenants, conditions, and restrictions in this Lease shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, assigns, or other successors in interest. 16.06. Entire Agreement. This Lease contains the entire agreement of the parties with respect to the matters covered by this Lease, and no other agreement, statement, or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Lease shall be binding or valid. 16.07. Partial Invalidity. If any term, covenant, condition, or provision of this Lease is held.by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provts~ons shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. 16.08. Relationship of Parties. Nothing contained in this Lease shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or joint venture or of any association between Lessor and Lessee, and neither the method of computation of rent nor any other provisions contained in tiffs Lease nor any acts of the parties shall be deemed to create any relationship between Lessor and Lessee, other than the relationship of Lessor and Lessee. 16.09. Interpretation of Language. The language in all parts of this Lease shall in all cases be simply construed according to its fair meaning and not strictly for or against Lessor or Lessee. 16.10. Pennsylvania Law to Apply. This agreement shall be construed under and in accordance with the laws of the Commonwealth of Pennsylvania, and all obligations of the parties created hereunder are performable in Cumberland County, Pennsylvania. Lease: Iselin & Garonzik./Chaudhrv & Warraich Page 15 16.11. Definitions - Construction. Unless otherwise provided in this Lease, or unless the context otherwise requires, the following definitions and rules of construction shall apply to tiffs Lease, regardless of whether the terms are capitalized or not in any given instance: (a) Number and Gender. In this Lease the neuter gender includes the feminine and mas.culine, and the singular number includes the plural, and the word "person" includes corporation, partnership, firm, or association wherever the context so requires. (b) Mandatory and Permissive. "shall," "will," and "agrees" are mandatory; may is penmsslve. (c) Term Includes Extensions. All references to the term of this Lease or the Lease Term shall include any extensions of such Term. (d) Land and Premises. Leased Premises, Land, Leased Premises, or Premises shall have one and the same meaning and shall include, where the context so requires, the improvements to the Land. In the event of a partial taking or condemnation, these terms shall be redefined as provided in section 9.07 of tiffs Agreement. (e) Parties. Parties shall include the Lessor and Lessee named in this Lease and successors in interest to them as provided in section 13.05 of this Agreement. (f) Sublessee. As used hereto, the word sublessee shall mean and include in addition to a sublessee and subtenant, a licensee, concessionaire, or other occupant or user of any portion of the Leased Premises or buildings or improvements thereon. 16.12. Captions. Captions of the articles, sections, and paragraphs of this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this Lease. 16.13. Attorney's Fees. In the event either Lessor or Lessee shall bring any action or proceeding for damages for an alleged breach of any provision of tiffs Lease, to recover rents, or to enforce, protect, or establish any right or remedy of either party, the prevailing party shall be entitled to recover as a part of such action or proceedings reasonable attorney's fees and court costs. 16.14. Interest. Any sum accruing to Lessor or Lessee under the provisions of this Lease wiff.'ch shall not be paid when due shall be~ interest at the rate hereinafter specified from the date written notice specifying such nonpayment is served on the defaulting party, or the date that any rent payment was first due, until paid. Interest shall be at the rate of the larger of six (6%) per cent per annum or the New York Prime Rate as published in The Wall Street Journal. 16.15. Modification. No amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof, and duly executed by the parties hereto. Lease: Iselin & Garonzik./Chaudhry & Warraich Page 16 16.16. Notices - Method and Time. All notices, demands, or requests from one party to another shall be either personally delivered or sent by Un/ted States or private mail, certified or registered, with provision for the execution of a receipt by the recipient, postage prepaid, to the addresses stated in section 16.17 of tiffs Agreement and shall be deemed to have been given at the time of personal delivery or at the time of mailing or sending. 16.17. Notices - Addresses. All notices provided to be given under tiffs Agreement shall be addressed to Mohamed G. Swati at 1134 Country Side Drive, Harrisburg, PA 17110, or any other address that may subsequently be specified by written notice delivered in accordance with this agreement. Any assignee or successor of any interest in tiffs Lease Agreement shall immediately notify the the other party of his, her, or its address for the purpose of receipt of notice. 16.18. Payment of Rent. All rents and other sums payable by Lessee to Lessor shall be by check payable to Lessor, delivered in person or mailed to Lessor at the address set forth in the preamble, and until further notice to "Ann G. Iselin and Harry L Garonzik" and mailed to Ann G. Iselin at 10802 North Sand Canyon Place, Tucson, AZ 85737. Lessor may at any time change the provisions of tiffs section by notice to the Lessee. 16.19. Broker's Commissions. Each of the parties represents and warrants that there are no claims for broker's commissions or finder's fees in connection with the execution of tiffs Lease, and each of the parties agrees to indemnify the other against all liabilities arising from any such claim. 16.20. Recording. At the request of either party, the parties shall, execute, acknowledge, and record a memorandum of lease. Contemporaneously with any such memorandum, Lessee shall prepare and execute an acknowledgment of the termination of the Lease, in recordable form, which shall be held by Lessor and not recorded until such time as tiffs Lease is finally determined to be terminated. The party so requesting the memorandum shall bear the cost of preparing and recording the same and the acknowledgment of the termination. 16.21. Counterparts. Tiffs Lease has been executed by the parties in several counterparts, each of which shall be deemed to be an original copy. 16.21. A. Tiffs Lease supercedes the Lease heretofore executed by the Lessor on September 28, 2000 which was signed by M. G. Swati as Lessee, provided the purported assignment of that lease by M. G. Swati to the within Lessees is valid. Lease: Iselin & Garonzik./Chaudhrv & Warraich 16.22. Execution. This Lease has been executed by the Lessor on 2001, and by the Lessee on Lessors: Page 17 ,2001. Ann G. Iselin Lessees: Sajl'd M. Warraich ANN G. ISELIN and HARRY L. GARONZIK Plaintiffs VS. AFZAL H. CHAUDHRY and SAJID M. WARRAICH Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - LAW : : NO. 02-4501 Civil Term : : AT LAW PRAECIPE FOR DEFAULT JUDGMENT TO: Cumberland County Prothonotary Please enter judgment in favor of Plaintiff and against Defendant in the amount of $30,966.62 with interest thereon at the legal rate plus costs, for failure of Defendants to plead with twenty days from the date of service of the Complaint on October 8 and 9, 2002. It is certified that Notices of Intention to Enter Default Judgment have been given in accordance with Rule 237.1 of the Pennsylvania Rules of Civil Procedure, a copy of said Notices and proofs of mailing being attached hereto. DATED: November ll,2002 Attorney for Plaintiff 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838 ANN G. ISELIN and HARRY L. GARONZIK Plaintiffs VS. AFZAL H. CHAUDHRY and SAJID M. WARRAICH Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - LAW : : NO. 02-4501 Civil Term : AT LAW TO: DATE OF NOTICE: SAJID M. WARRAICH October 29, 2002 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT 'WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Court Administrator, Fourth Floor Cumberland County Court House Carlisle, Pennsylvania 17013 Telephone: (717) 240-6200 Robert G. Frey Attorney for Plaintiffs 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838 ANN G. ISELIN and HARRY L. GARONZIK Plaintiffs VS. AFZAL H. CHAUDItRY and SAJID M. WARRAICH Defendants : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - LAW : : NO. 02-4501 Civil Term : : AT LAW TO: DATE OF NOTICE: AFZAL It. CFIAUDI--IRY October 29, 2002 IMPORTANT NOTICE YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP: Court Administrator, Fourth Floor Cumberland County Court House Carlisle, Pennsylvania 17013 Telephone: (717) 240-6200 Robert G. Frey · Attorney for Plaintiffs 5 South Hanover Street Carlisle, Pennsylvania 17013 (717) 243-5838