Loading...
HomeMy WebLinkAbout97-01477 1 .~ i 1{ ~ .... . ~ c \ . '" :> CERTIFICATE AND TRANSMITTAL OF RECORD UNDER PENNSYLVANIA RULE OF APPELLATE PROCEDURE 1931 (c) To the Prothonotary of the Appellate Court to which the within matter has been appealed: SUPERIOR COURT OF PENNSYLVANIA THE UNDERSIGNED. Prothonotary of the Court of Common Pleas of Cumberland County. the said court being a court of record. do hereby certify that annexed hereto is a true and correct copy of the whole and entire record. including an opinion of the court as required by PA R.A.P. 1925. the original papers and eXhibits. if any on file. the transcript of the proceedings. if any. and the docket entries in the fOllowing matter: q,. Case No. 1477 Equity Term: No. 543 HOG 1997 PENN PEST. INC.. A PENNSYLVANIA CORPORATION VS. FRAriK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS: FRANJt DEITCH AND SAMUEL DEITCH TIA DEITCH BROTHERS PEST CONTROL: FRANJt DEITCH AND SAMUEL DEITCH tie PENN PEST OF CARLISLE. INC.. A PENNSYLVANIA CORPORATION The documents comprising the. record have been numbere~ from No. 1 to No. 229 . and lIttached hereto as Exhibit A is a list of the documents correspondingly numbered and identified with reasonable definiteness. including with respect to each document. the number of pages comprising the document. The date on which the record has been trar.smitted to the appellate court is August 19. 1997 Received in Supericr Court ISed of Court) AUG zl '991 ~ t. ),:/i.l;~/~ . Prothonotary HAKKI~URu An additional copy of this certificate is enclosed. Pl.ase si~ end data copy. thereby acknowledging receipt of this record. RaCOIO llECKlVEO: Date: .'t/;/C( (.i~:~/~;:>~' title) CERTIFICATE AND TRANSMITTAL OF RECORD UNDER PENNSYLVANIA RULE OF APPELLATE PROCEDURE 1931 (c) To the Prothonotary of the Appellate Court to which the within matter has been appealed: SUPERIOR COURT OF PENNSYLVANIA THE UNDERSIGNED, Prothonotary of the Court of Common Pleas of Cumberland County. the said court being a court of record. do hereby certify that annexed hereto is a true and correct copy of the whole and entire record, including an opinion of the court as required by PA R.A.P. 1925. the original papers and exhibits, if any on file. the transcript of the proceedings. if any, and the docket entries in the following matter: Case No. 1477 Equity Term: No. 543 HBG 1997 PENN PEST. INC.. A PENNSYLVANIA CORPORATION VS. FRANK DEITCQ AND SAMUEL DEITCH AS INDIVIDUALS: F~K DEITCH AND SAMUEL DEITCH T/A DEITCH BROTHERS PEST CONTROL: FRANX DEITCH AND SAMUEL DEITCH t/a PENN PEST OF CAftLISLE. INC.. A PENNSYLVANIA CORPORATION The documents comprising the. record have been numbered from No. 1 to No. 229 . and attached hereto as Exhibit A is a list of the documents correspondingly numbered and identified with reasonable definiteness. including with respect to each document. the number of pages Comprising the document. The date on which the record has been transmitted to the appellate court is Au~st 19. 1997 (Seal of Court) ~t. ~/~ Prothonotary An additional copy of thi8 certificate i8 enclosed. Please 8ign and date copy. thereby acknowledging receipt of thia record. RECORD RECEIVED: Date: (signature' title) Commonwealth of Pennsylvania County of Cumberland 155: I. Lawrence E. Welker . Prothonolary of Ihe Courl of Common Pleas in and for said Counly. do hereby cerlify Ihal Ihe foregoing is a lull. Irue and correct copy olthe whole record olthe case therein slaled. wherein Case No. 543 HBG 1997 PeM Pest, Inc.. A PA Comoration Plainliff and Frank Deitch and Samuel Deitch t/a Deitch Brothers PeM Pest t/a PeM Pest of Carlisle, Inc. Delendanl _. as Ihe same remains 01 record belore the said Court al No. 97-1477 01 Equitv Term. A.D. 19_. have hereunto sel my hand and affixed Ihe seal 01 said Court day 01 AUQUSt A. D.. 19-R. ~t. )V~/.IA4- Prothonntary In TESTIMONY WHEREOF. I Ihis Nineteenth I. Harold E, Sheely Presidenl Judge of Ihe Ninth Judicial District. composed of Ihe Counly of Cumberland. do cerlily Ihat Lawrence E. Welker, Prntl'rlnotll'Y . by whom the annexed record. certifICate and allestalion were made and given. and who. in his own proper handwriting.lhereunto subscribed I:is name and affixed Ihe seal oflhe Court 01 Common Pleas 01 said County. was. al the time 01 so doing. and now is Prolhonolary in and lor said Counly 01 n'-rlllm in the Commonwealth 01 Pennsylvania. duly commissioned and qualified 10 all 01 whose acts as such lull laith and credil Ire and oughl to be: given as well in Courts 01 judica ure as elsewhere. and Ihallhe said record, certiflCale and allestalion are in due lorm 01 law and m de y lhe proper offICer. Commonweallh of Pennsylvania County 01 Cumberland }.. I. L'swrence E. Welker . [,,,"honollry 01 Ihe Court of Common Pleas in and lor Ihe said County. do certily Ihallhe Honorable HamId E. Sheel,y by whom Ihe lorqoina alleslalion was made. and ..ho has thereunlo subocribed his name. was. allhe lime 01 ma~ing Ihctrol. and slill is President Judge 01 Ihe Court of Common Pleas. Orphan' Court and Court 01 Quarter Sessions of the ""ace in and lor said Counly. duly Commi..ioncd and qualified; 10 all whose acts as such full lallh and credit are and ou,hl to be ,"en. as ...,1110 Courts 01 judicature as elsewbere. IN TESTIMOSY WHEREOf'. I ha,'e hereunh. sel my hand and affi.ed lhe >eal of \aid Court Ihis 19th day of Auaust All 19....21-. #t(.l,.-lMH'L t, )V~ /J"It~ rtuthuftUI.u\ !r r"l :;- ll' .., III rt rt ~ Z Z ~ 0 ~ 'Il ? ? .. 3 ~ 0 'Il III III \I a. .. 3 ::l ::l Ii UI l"l 'Il i llr ::l ... . )( \I ... it l"l ::l .... i 'Il 3: ::l rt \I '!I n .... . ~ [ .. 'Il ::r rt rt - .. \I n < :: '!I . III ::r III '" - a ~ Cl !"l III C c rt 21- .. " r !"l ." .., ~ fIl ~ ni . Q I III ;. " i ~ . ~ C 'Il ~ 3 . ~ \I i ~ . I ... ... c I I~ " ~ " rt g -< ~ i .... ; H rt . ::l rt n n a :r . ... PAGE N). 1 - 25 26 - 52 53 - 54 55 - 56 57 - 73 74 75 - 80 81 - 82 83 - 87 88 - 90 91 - 103 104 - 107 108 - 110 111 - 112 113 - 115 116 - 179 180 - 188 189 - 229 Among the Reeords and Proceedings enrolled in the court or Common Pleas in and ror the county or Cumberland 543 HBG 1997 Equity Term is contained the rollowing: in Ihe Commonwealth or Pennsylvania No. 97-1477 10 No. Term. 19 COPY OF Appearance DOCKET ENTRY PENN PEST. INC.. A PENNSYLVANIA CORPORATION VS. FRANK KEITCH AND SAMUEL DEITCH AS INDIVIDUALS: FRANK DEITCH AND SAMUEL DEITCH T/A DEITCH BROS. PEST CONTROL: FRANK DEITCH AND SAMUEL DEITCH T/A PENN PEST OF CARLISLE. INC.. A PENNSYLVANIA CORPORATION March 21. 1997. Catplaint in Equity. filed. March 21. 1997. It>tion for Preliminary Injunction, filed. March 21. 1997. Order to Appear at Preliminary Hearing, filed. March 26. 1997, Sheriff's Return of Service, filed. AprlllC. 1997. Anmier with New Hatter am Counterclaim of Frank Deitch Individually, Deitch Brothers Pest Control am Penn Pest of Carlisle, Inc.. to Plainltff's Carplaint, filed. Aprll16. 1997. Order of Court. filed. Aprll 25. 1997. Transcript. filed. In Re: Testilrony of TIDnas Deitch Aprll 25. 1997. Preliminary Injunction, filed. May 9. 1997, It>tion to Extend Date to Post Bond, and Order. filed. May 12. 1997. Injunction Bond. filed. May 12. 13. 1997. Petition to Vacate May 9, 1997 Order. and Order of Court. filed. May 27. 1997. I'C)tice of Appeal. filed. By: Scott D. It>ore. Esq.. for Defendants JID! 20. 1997. Superior Court of Pennsylvania I'C)tice of Appeal D:x:keting to I'C). 543 HOG 1997. filed. JID! 24. 1997. Order of Court. hIed. July 7. 1997. Statement of Hatten Cartllained of CIl Appeal, filed. July 8. 1997. Transcript of Prex:eedingB, filed. In RIl: PreliminaIy Injunction ~. 13. 1997. ~inion Pursuant to Pennsylvania Rule of Appellate Procedure 1925. By the Court. Q1gar B. Bayley. J. Exhibits ~ ., ~ "... !II ~ a ~ ." III ~ ~ ~ z Z :s a "CI !) !) - 3 ~ "CI III III CD .. - 3 a. .. :I :I VI ~ "CI 'i If :I \D ... . ~ CD -.I l;oI it ~ :I ... 'i "CI I 3: :I .. CD ... !! n ... . ~ ." "CI :r ~ ~ a: - .. ftl n . = ~ . III :r < ~ ~ a .. ... ~ ~ 0 Cll :I 0 .. :I .. n " 111 :r Co . ~ CD .. ., " III ;:J .... i Q . III Cll .. " ! ~ 3 r - "CI ~ 3 ~ ~ ... ftl a ~ . I . ... ... c I I~ ~ 1! " ~ l)l -< l)l 'i ... ~ ... :I ~ . :I ~ n n " :r . 0 ... J ~ ~s a , -t- .1)1Ij ~ ::r :r " .. ~ ~ -~-<" ----_.:- -'" '''J::_-:-~' ,- ,- :/,,",>' .----,-_. --- '. .. . ~ ~i~ I f-< z ~hilib. H .0: oJ 110 lE IhllU 0 u . I~I~I~~ > .~ -,.' 1-' ~" c::...-4)ti: " . . . ,.;,'" - ,-~-<::L' __,_"",c " ;,'. _.", -i;.---- ;; ,::~-J~- ~--ff- ::,; -",.- ','- ",'-r,'. '; . . ~'-'~~'I.I'f -8' I . .~~l!r . ~1~1";' -, - -.".-'-- ._' ,;_,__c~:-~~,~-- -~}:':.':.:,-,;:~: . -,:.".y., ;-;;- .." ""'. ...- . . . . J . PENN PEST, INC., A PENNSYLVANIA CORPORATION IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. No. '11- ''''7C1~ T.u- FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION CIVIL ACTION - EQUITY : Defendants . . NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. Yoo SHOULD TAD THIS PAPER '1'0 YOUR IMYIR AT <H:E. IF YOU DO NOT HAVE A IMYIR OR CANNOT AFroRD e>>a:, GO '1'0 OR TELE~ '!'HE OFFICE SET roRTH BElDIf '1'0 FIND OUT WHEN: YOU CAN GET LEGM. HlLP. Court Administrator 4th Floor, CUmberland County Court House Carlisle. PA 17013 (717) 240-6200 , . . 2. Defendants, Frank Deitch and Samuel E. Deitch, are adult individuals who reside in Cumberland County. 3. Defendants, Frank Deitch and Samuel E. Deitch, are now or at all relevant times in the past traded and did business as Deitch Brothers Pest Control, a Pennsylvania Partnership comprised of Frank Deitch and Samuel Deitch, having its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania 17013. 4. Defendants, Frank Deitch and Samuel E. Deitch, are now or at all relevant times in the past traded and did business as Penn Pest of Carlisle, Inc., a Pennsylvania partnership comprised of Frank Deitch and Samuel Deitch, having its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania 17013. 5. On or about March 2, 1995, Plaintiff Penn Pest, Inc. entered into a License and ConSUlting Agreement (~Agreement.) with Frank Deitch and Samuel Deitch as officers of Penn Pest of Carlisle, Inc. and with Frank Deitch and Samuel Deitch as Partners of Deitch Brothers Pest Control. (See Exhibit ~A., License and Consulting Agreement, attached hereto and made a part hereof by reference.) 6. This equity action is therefore alao brought against Frank Deitch and Samuel Deitch aa individuals baaed upon the 2 . . . concept of joint and several liability for the members of a partnership. 7. Through the Agreement, the Plaintiff purchased for actual consideration of $8,000 all customer accounts of Deitch Brothers Pest Control, a partnership previously operated by the Defendants. Exhibit "A", Paragraph II. 8. Through the Agreement, the Plaintiff agreed to supply the defendant logistical and technical support and in return Defendants would be granted a license to use the Plaintiff's Trade Name, Trademark, and Logo in parts of Cumberland County. See Exhibit "A", Paragraph VII. 9. Through the Agreement, Defendants agreed to pay to the Plaintiff 10% of their gross income on a weekly basis, in addition to the initial purchase price of the license. See Exhibit "A", Paragraph IV. 10. The Agreement also contains a "Covenant Not to Compete" which provides that in the event that the Agreement is terminated the Defendants will "not engage in direct business competition in a similar retail business, either as owner, partner, shareholder, manager, or consultant for a period of two (2) years from the date of termination of this License Agreement and within a fifty ISO) mile radius of the location of the principal place of business in Cumberland County." Exhibit "A", Paragraph XV. 3 ~ .. . . ~ I ! 11. As a result of the ~greement and because the Defendants were allowed access to the very foundation of Penn Pest, Inc., business strategies, including but not limited to, customer lists, sales plans, growth plans, and Housing Authority Contracts in Carlisle and Harrisburg, the Defendants have increased their , yearly revenue to over $70,000 with the potential to do approximately $100,000 in the upcoming year. 12. Now, having achieved greatly increased revenues through the Agreement and based on the business expertise and support of the Plaintiff, the Defendant has refused to pay the Plaintiff its rightful fee. 13. In violation of the License and Consulting Agreement, the Defendants are currently in default of their obligation to remit 10% of the weekly gross proceeds. Exhibit ~A~, Paragraph IV. 14. Plaintiff is suffering and continues to suffer serious economic losses because the Defendants have refused to remit lOt of their gross receipts as they have contracted to do. 15. The Defendant, by not paying the required percentage of the gross revenues to the Plaintiff and by failing to abide by the terms of the Agreement's ~Covenant not to Co.pet.,~ i8 utilizing all the benefits of the association with th. Plaintiff without properly compensating the Plaintiff for th... .erviCe.. 4 - . 16. In addition to not paying the required percentage of gross revenue to the Plaintiff, and in violation of the License and Consulting Agreement, Defendants have attempted to terminate their relationship with the Plaintiff and have so advised the Plaintiff of their intentions. 1? In violation of the Agreement's ~Covenant Not to Compete," Defendant, Frank Deitch. is operating a Pest Control company under the name Deitch Pest Control. Exhibit "A", Paragraph XV. 18. Defendant, Frank Deitch. is not only operating a pest control business in violation of the Agreement in Cumberland County but is also soliciting customers in Dauphin. York, and Franklin Counties. 19. These actions are causing serious and irreparable economic harm to the Plaintiff as well as serious and irreparable harm to the Plaintiff's business reputation. 20. In violation of the License and Consulting Agreement, Defendants have not offered the Plaintiff the right of first refusal to buy back all assets of the business including, but not limited to, all customer accounts, accounts receivable, inventory, furnishings, fixtures, and equipment. Exhibit "A", Paragraph XII, Clause F. 5 . . 21. In violation of the License and Consulting Agreement, the Defendants have failed and refused and continue to fail and refuse to either return the list of customer accounts purchased by the Plaintiff or return the $8,000 purchase price paid by the Plaintiff for these accounts. Exhibit ~A", Paragraph XII, Clause G. 22. In violation of the License and Consulting Agreement, the Defendants have refused to go to arbitration to settle this dispute. Exhibit ~A". Paragraph XIX. 23. Defendants are attempting to continue to provide services to accounts that were purchased by the Plaintiffs. 24. These actions are causing serious and irreparable economic harm to the Plaintiff as well as serious and irreparable harm to the Plaintiff's business reputation. 25. Plaintiff, because it cannot obtain the list of customer accounts from the Defendants is unable to properly service existing Penn Pest, Inc., clients. 26. As a result, Plaintiffs are suffering and continue to suffer serious losses to their business reputation because there is no longer a deSignated Penn Pest, Inc.. representative to service Cumberland County. 6 ... . 27. Each day that goes by causes further damage to the business reputation of the Plaintiff and their ability to conduct a successful ongoing business enterprise in Cumberland County. 28. At all times, Plaintiff has fulfilled all of its obligations under the Agreement. Plaintiff comes into Equity in good faith and with clean hands. WHEREFORE, The Plaintiff respectfully requests that this Honorable Court declare that the License and Consulting Agreement entered into between the Plaintiff and the Defendants valid and , i... i 1 : i I I i I , I , I , , I , i ; binding and order the Defendants to abide by the agreement and the non-competition clause therein. Plaintiff respectfully requests this Honorable Court to order the Defendants to immediately cease competing with the Plaintiff in any manner whatsoever involving pest control services, including but not limited to: al solicitation of Realtors; bl performance of real estate inspections; cl performance of termite treatments; d) performance of pest control treatments; el soliciting new customers; fl providing estimates to these new customers; and Q) servicing existing Penn Pest, Inc. accounts. Plaintiff requests strict enforcement of the non-competition clause. Plaintiff respectfully requests this Honorable Court to order the Defendants to immediately stop servicing account. 7 ... . VERIFICATION I, Patrick E. Moran, President of Penn Pest, Inc., am PENN PEST, INC. authorized to make the following verification on behalf of said corporation. I verify that the statements made in the foregoing complaint are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of'18 Pa. C.S. 14904, relating to unsworn falsification to authorities. &YO jJ~. -HffJ',)l"ilSEAL) Patrick E. Horan, President Dated: 3 -ll . '17 it i 1!I~a '0.11 II s . 1..1 I~ft -~- ..~, a aj :;.,; t~" ;~;~-..~I 9 II ' - ',:' "" III! --~ -". II '.':' l ~ ~c f:-'''>'-:>_.~_,,~,. c.,c,_:?'j<.'_";}'.'.:;_':::,.;> ~ , l~ '~i) "/~t, ."",.'YI-'~ ., 1"' "', _ i, _: ", ."~ ~ .~ ~ >' " ~~, ;y-':. .... > " .,..'}L~1r~~ .",,;,. o Z M IlIlllG cc Will P,:C P, 0<>0 llG ~~ M llGZ 14M Q..1 llGf4 ,Ollll .. llo foe .c .';~::' ~~ ~'.~-' '\" jib "::...5. 'i: ';f~ ',' ;.~: >=.~. :"; '~~; ~" - \-"- ,-:'':. ,'. -~" -~,-:' -'/". ,':.: >-.,/ ~ ~- ^..> , ~~'-- -" "'."':" ~ '-. ~ -'. ". ;A"--";""~~~?;;;!\;:-'-';' ",':..",,-., "'v'" .'.' '",'. . ',', 0_-,_;.'_~v '-:"'-', .. . WHEREAS, Licensor is the proprietor ot the trade name "Penn pest, Inc." ("Trade Name"), and WHEREAS, Licensee desire. to acquire a 1icen.e tor the right to use Licensor'. Trade Name, Trademark and Logo in part. ot CUlllberland County a. defin.d hereinatter, and have acce.. to Licen.or'. bu.ine.. experti.e, and ~, Licensor hereby agree. to permit Licen.ee to u.. its Trade Name, Trademark and Logo in part. ot cumberland County as detined hereinatter, and turther agrees to provide consultinq services in accordance with the terms and conditions .et torth below, NOW THEREFORE, in consideration ot the mutual covenant. and promises set forth herein and with the intent to be legally bound hereby the Parties do agree as tol10ws: I. LICENSE. This licen.e includes the exclusive use ot the Licensor's Trade Name, Trademark, Logo and the Licensor's support .ervices within the Territory as detined hereatter ("Licen.."). II. PURCHASE PRICE OF LICENSE. Licensee shall pay to Licensor Seven Thousand Dollars ($7,000.00) tor the purchase ot the License. The Purchase price is to be_paid in the torm ot a monthly payment, the first ot each month, tor a twenty-tour (24) month period. Th. tirst payment i. due and payable on April 1, 1995. All paym.nt. are to be aad. in person at or by .ail to 4601 Locu.t tane, HarriSburg, PA ("Corporate ottic..") or as the location may be changed trom ti.. to ti... .. . " III. PURCHASE OF DEITCH BROTHERS PEST CONTROL ACCOUNTS. Licensor shall credit Licensee the sum of Eight Thousand Dollars ($8,00D.00) for the purchase of all DEITCH BROTHERS PEST CONTROL accounts in one lump sum at the time of execution of this Agreement. IV. LICENSE FEE. Licensee shall pay Licensor a license fee of ten (10) per cent of the gross income, payable weekly. It is agreed that Licensor shall commit and utilize two (2) per cent of the license fee for advertising as a part of the support services provided for herein. V. TERRITORY. This License Agreement grants to Licensee exclusive use of the License within the County of CUmberland, Pennsylvania, specifically excluding however, all of the Borough of Mechanicsburg and the area East of Route 114 ("Territory"). Licensor agrees not to grant the right to use Licensor's Trade Name. Trademark and Logo to any other 'licensee within the said Territory while this License and ConSUlting Agreement remains in effect. Licensee shall have the right but not license to operate his business in other counties east of CUlllberland County. However, in the event that Licensor grants any entity a license to operate in counties other than CUlllberland County, Licensee agr.e. to ~ automatically cease doing business in those counties. VI. EXCWSIVE LICENSE. A. This License is granted by Licensor exClusively to Licensee. It lIay not be sold, .ssigned, or transferred to any -3- ;ilIIIl ,. , i , [ t third party without Licensor's express written approval shall not be unreasonably withheld. B. In the event that the License is approval, which transferred, exceed three the Licensor shall receive a fee thousand dollars ($3,000.00). sold, assiqned or in an amount not to VII. USE OF TRADEMARKS. A. Whenever the Licensee uses the Trade Name, Trademark or Logo in advertisinq or in any other manner in connection with the qoods or services which it sells, distributes, or provides, the Licensee shall clearly indicate the Licensor's ownership thereof. The Licensee shall provide the Licensor with samples of all literature, packaqes, labels, 1abellinq and advertisinq prepared by or for the Licensee and intended to be used by Licensee. When usinq the Trademark under this Aqreement, the Licensee undertakes to comply with all laws pertaininq to trademarks in force at any time in the Territory, includinq, but not limited to, compliance with markinq requirements. B. Licensee'. apparel shall be in accordance with the Licensor's uniform of navy blue slacks and white shirte with the Licensor's Logo prom~nently displayed thereon unle.s and until a uniform chanqe ie made by the Licensor. Licensee's vehicle. .hall be either navy blue or white in color and placarded with Licensor'. ~ . Logo, unless and until a chanqe is made by L~cens~r. ;. , ~ I \ \ I ! I I VIII. LOGISTICAL AND CONSULTING SUPPORT. Th. Llcenso~ a~u" to provide the followlnq support to the Licen...: A. telephone answerinq service.' -4- ~ .. B. all calls qenerated from advertised phone numbers will be routed directly to the corporate Offices with charges for calls paid by the licensee; c. billinqs, includinq collection of accounts receivable; o. traininq; E. assist in account development; F. advertisinq placement; G. assist in obtaininq insurance; H. purchase of inventory and equipment at Licensor's cost; I. assist in licensinq procedures; and J. any other services Licensor wishes to make available to Licensee. IX. LIMITED RIGHT TO PROSPECTIVE CUSTOMERS. In the event that there are any prospective customers ("Leads") in the Territory and the Licensee for whatever reason decides not to submit a proposal to or accept the Lead as a customer, then Licensee aqrees to permit Licensor the limited riqht to operate within the licensed Territory for the sole purpose of submittinq a proposal to and/or servicinq the Lead. Licensee aqrees to waive all riqhts under this Aqreement to service the Lead. X. INDEMNITY. The Licensor assUlIIe. no liability to the Licensee or to third parties with respect to the performance characteristics of the qoods or .ervice. provided by Licensee under the Trade Na.e, Trademark, or Loqo or to the use ot the Trade NUle, Tradeaark, or LoqO in the Territory, and the Licensee hereby indemnifies and holds harmle.. the Licensor aqain.t all los.es, damaqe., and expense., includinq attorney's tee., incurred aa a -5- ~ .... result of or related to claims of Licensee or third persons involving the manufacture of the goods; sale of the goods by Licensee or services by Licensee or use of the Trade Name, Trademark, or Logo by Licensee. ! ! XI. RIGHT TO AUDIT. Complete and accurate accounts of all transactions of the Licensee shall be kept in proper books of accounting. Such books of account and other records of the Licensee shall, at all times, be kept in the place of business of the Licensee and Licensor shall have access to and may, upon givinq reasonable notice, inspect and copy any of them for purposes of determining Licensee's gross income. XII. TERMINATION. A. Except as otherwise provided herein, this Agreement shall remain in full force and effect from the first day Licensee operates his business. B. Criminal Proceedinas. If the Licensee or its officers are convicted in a criminal proceeding of any wrongdoing arising from the operation of the business, the Licensor may immediately terminate this License. C. Civil Proceedinas. If a monetary judgment is entered against the Licensee as the result of any litigation in any civil proceeding arising from the operation of the business, which would adversQly affect the business reEutation of Licensor, the Licensor may immediately terminate this License. D. Nonoerformance. Should the Licensee fail to comply with any provision of this Aqreement, the Licensor may terminate this Aqreement upon t~irty (30) days written notice to the Licen..e, -6- 1'"'\ ,.. provided that the Licensee the notice period. E. AsBianmentl ReceivershiDI BankruDtcv. It the Licensee makes any assignment ot assets or business tor the bene tit ot creditors, or it a trustee or receiver is appointed to administer or conduct its business or attairs, or it is adjudged in any legal proceeding to be either voluntary or involuntary bankrupt, or it any portion ot the Licensee's business is awarded to a third party, then all the rights granted herein shall forthwith cease and terminate without prior notice or legal action by the Licensor. F. Involuntarv Dissolution. Upon the occurrence of involuntary dissolution of any sort including, but not limited to, death or permanent disability, Licensee shall give a right of first refusal to Licensor to buy back all assets of the business including, but not limited to, accounts, accounts receivable, inventory, furnishings. fixtures, equipment, leases and all other relevant items at such terms and conditions as the Parties may agree. In the event Licensor does not wish to exercise this right of tirst refusal, the Licensee may liquidate its assets by selling to the general public. G. If Licensor terminates the License for just cause, as provided for in this Section XII B. through E., . the account., accounts receivable, work in progress and customer list. of the Licensee shall automatically become the property of the Licensor. Additionally, the Licensor in the event that Licensee .ell. th..- business shall have the right ot first retusal to buy baclc the remaining assets as provided tor at Section XII F. Otherwi.e, the physical assets of the Licensee ahall reaain it. property. has not corrected such detault during -7- ,-., ~ '. XIII. CONFESSION OF JUDGMENT. In the event ot default by Licensee, licensee hereby authorizes any attorney or any court ot record in Pennsylvania, or elsewhere, to appear tor Licensee in any action brought on this License Agreement and to confess judgment against Licensee for all sums then due pursuant to the terms of the License Agreement and tor costs of suit and attorney's commission of ten per cent (10\), together with ten per cent (lot) interest on any judgment obtained by Licensor atter detau1t, including interest at that rate from and atter the date of any Sherift's sale until actual payment is made by the sheritt to Licensor or the full lllIlount due Licensor, and tor so doing this shall be good and sutticient warrant. Licensee waives and relinquishes all errors, detects, and imperfections in the entry ot judgment as aforesaid, or in any proceeding pursuant thereto, and all benetits under any law or rule of court relating to a stay of execution or exempting any property from levy or sale under execution. The authority herein granted to confess judgment shall not be exhausted by any exercise thereot but shall continue from time to time and at such times until all obligations of Licensee to Licensor have been fully discharqed. XIV. OWNERSHIP OF TRADEMARK. The Licensee acknowledges the Licensor's exclusive right, title and interest in and to the Trade Name, Trademark, and Logo and will not at any time do or cause to be done any act or thing contesting 01: in any way iapairillCJ or tending to iapair any part of such right, title and interest. In connection with the use of the Trade Naae, Trademark or Lo;o, the Licensee shall not in any aanner represent that it has any ownership in the Trade Na.e, Trademark, or Logo or registration -8- """" """ '. thereof, and the Licensee acknowledges that the use of the Trade Name, Trademark, or Logo shall not create in the Licensee's favor, any right, title or interest in or to the Trade Name, Trademark, or Logo but all uses of the Trade Name, Trademark, or Logo by the Licensee shall inure to the benefit of the Licensor. Upon termination of this Agreement in any manner provided herein, the Licensee will cease and desist from all use of the Trade Name, Trademark, or Logo in any way (and will deliver up to Licensor, or its duly authorized representatives, all material and papers upon which the Trade Name, Trademark, or Logo appears), and the Licensee shall at no time adopt or use, without the Licensor's prior written consent, any word or mark which is likely to be similar or confusing with the Trade Name, Trademark, or Logo. XV. COVENANT NOT TO COMPETE. Licensee agrees that in the event that the License Agreement is terminated as provided for under this Agreement. Licensee will not engage in direct business competition in a similar retail business, either as an owner, partner, shareholder, manager, or consultant for a period of two (2) years from the date of termination of this License Agreement and within a fifty (50) mile radius of the location of the principal place ot business in cumberland County. XVI. PRICING. All retail prices for sale of merchandise and services by Licensee shall be suggested by Licensor as part of its consulting services. Licensee shall have full control over the actual pricing charged for its sale of urchandiae and servia.. within its license territory. -9~ ~ ,.., " , ., . XVII. EXECUTION OF DOCUMENTS. Each Party shall, at the request ot the other, execute, acknowledge and deliver any documents which may be necessary to carry out fully and effectively the terms of this Agreement. XVIII. NOTICES. Any notices required or permitted to be given under this Agreement shall be deemed sufficiently given it mailed by registered mail, postage prepaid, addressed to the Party to be notified at its address shown at the beginning ot this Agreement, or at such other address as may be furnished in writing to the notifying Party. XIX. ARBITRATION. A. All claims, disputes, and other matters in question between the Parties to this License and Consulting Agreement, arisinq out of or re1atinq to this Agreement or any breach or alleged breach of this Agreement. will be decided by arbitration unless the Parties otherwise mutually agree in writing. B. The Parties agree upon one arbitrator, otherwise there shall be three, one named in writinq by each Party ot this Agreement within ten (10) days after notice of arbitration is served by either Party upon the other. and a third arbitrator selected by these two (2) arbitrators within ten (10) day. thereafter. No one shall serve as an arbitrator who is in any way financially interested in this Aqreuent or in the attaira of either Party hereto. c. This agree.ent to arbitrate shall be specifically enforceable under the prevailil\9 arbitration lava. The avard rendered by the arbitrator(s) will be final and binding, end -10- 1"". ". ". . judgment may be entered upon it in accordance with the applicable law in any court that has jurisdiction over the decision. XX. SUCCESSORS AND ASSIGNS. This License Agreement shall be binding on the Successors, Heirs and Assigns of each Party. XXI. HEADINGS. The headinqs are provided tor convenience of identification only and are not to be construed as havinq any leqal siqnificance. XXII. PENNSYLVANIA LAW TO APPLY. This Aqreement shall be construed under and in accordance with the laws at the Commonwealth of Pennsylvania and all obliqations of the Parties created hereunder are pertormable in Dauphin County, Pennsylvania. XXIII. LEGAL CONSTRUCTION. In the event anyone or more of the provisions contained in this Aqreement shall for any reason be held invalid, i1leqal or unenforceable in any respect, the invalidity, illeqality or unentorceability shall not attect any other provision thereof and this Aqreement shall be construed a. if such invalid, illeqa1 or unenforceable provision had never been contained herein. XXIV. SOLE AGREEMENT OF THE PARTIES. 1his Aqre..ent constitute. the sole and only aqre8lllent at .the Parties hereto and supersede. any prior Understandinq or written or oral agreeaents between the Parties respectinq the within subject utter. -11- ~-, ("'. '. . . .. , .. . , '. . XXV. AMENDMENT. No'amendment, moditication or alteration ot the terms hereot shall be bindinq unless the same be in writinq, dated subsequent to the date hereot and duly executed by the Parties hereto. XXVI. WAIVER OF DEFAULT. No waiver by the Parties hereto ot any detau1t or breach ot any term, condition or covenant ot this Aqreement shall be deemed to be a waiver ot any other breach ot the same or any other term, condition or covenant contained herein. IN WITNESS WHEREOF the Parties hereto have set their hands and seals the day and year tirst written above. ATTEST: PENN PEST, INC. c:?iJr:~ President (SEAL) (Licensor) ~,~., . ~-c.. t-k~J:Jcl ATTEST: PENN PEST OF CARLISLE, INC. ~t'd'~ .\.\a~~ 1~ IJPu President (SEAL) (Licenaee) WITNESS: DEITCH BROTHERS PEST CONTROL . '-~~'I~e. \-\e.~~ 7-1 ~~ Partner (SBAL) (Licena..) WITNESS: DEITCH BROTHERS PEST CONTROL ~~~SBAL) Partner ( cenaee) \...~_..-. ~ ~ ~ ~ . -12- ~~\' \~~ VIt. eo , res (.oft T /Je--. 'es-r rF ~ ~ , . .. . .. ~ PENN PEST, INC., A PENNSYLVANIA : IN THE COURT OF COMMON PLEAS CORPORATION CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. No. "1- 11/79 ~ -r;-- FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; . . CIVIL ACTION - EQUITY FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION : : Defendants t<<)uoo FOR PRELIMINARY INJUNCTION AND NOW, this Z/~ day of March 1997, comes the Plaintiff by and through its attorney. A MARK WINTER, ESQUIRE, and pursuant to Pa. R.C.P. No. 1531(a), Plaintiff, above-named, moves for the issuance of a Preliminary Injunction against defendants, above- named, as follows: 1. Plaintiff's Complaint in Equity is incorporated herein by reference in its entirety, as though fully set forth at length. A true and correct copy of Plaintiff's complaint is attached hereto, made part hereof, and market Exhibit ~A.. 2. Defendants have failed and refused and continue to fail and refuse to abide by the terms of a License and Consulting Agreement entered into between the Plaintiff and the Defendants. 3. Defendants have failed and refused and continue to fall and refuse to pay to Plaintiff 10\ of their weekly gross proceeds as required by the License and Consulting Agreement entered into between the Plaintiff and the Defendants. . . 4. Defendants have failed and refused and continue to fail and refuse to either return the list of accounts purchased by the Plaintiff or to refund the $8,000 purchase price paid by Plaintiff for these accounts. 5. Defendants have been and continue to improperly spend, waste, disburse, and utilize the proceeds for their own personal use and benefit. 6. Unless such improper conduct of the Defendant is immediately enjoined, and Plaintiff is granted relief as requested, Plaintiff will be irreparably injured in that: (al Plaintiff will not be able to recover lost accounts which it has already purchased from the Defendants. (bl Plaintiff will suffer irreparable loss of potential business due to a lack of a licensed Penn Pest, Inc. representative in the Carlisle Area. (cl Plaintiff will suffer and continues to suffer irreparable economic losses. (dl Plaintiff will suffer irreparable loss to business reputation. (el Plaintiff's other Licensees may not honor their COvenants not to compete. WHEREFORE, Plaintiff requests that Preliminary Injunction issue: (al Directing Defendant to place into a special escrow bank account, in both names of the parties, an amount of money equal to 10% of the proceeds received by the Defendants while they have been in violation of the License and Consulting Agreement, as well as, the $8,000 purchase price for the customer accounts of Deitch Brothers Pest Control paid by the Plaintiff, withdrawal to be only upon further written Order of this Court or upon wrltten aqreement of both parties. (bl Enjoining Defendants, and their officers, agents, servants, and employees frolll further borrowlnq, payinq, or otherwise transacting any business or transactions in the ~ of or on behalf of Deitch Brothers Pest Control, Penn P..t of 2 . c; i-.:"'_ . . . , EXHIBIT A. . I I ~ , r j . PENN PEST, INC., A PENNSYLVANIA CORPORATION IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff V. : No. : FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION , . . CIVIL ACTION - EQUITY : . . . . . . . . Defendants . . .... ..., CQCPIAINT AND NOW, this day of , 1997, comes the Plaintiff by and through its attorney, A. HARK WINTER, ESQUIRE, and files this Complaint based upon the following facts and in support thereof avers that: 1. Plaintiff, PENN PEST, INC., is a corporation incorporated in accordance with the laws of the Commonwealth of Pennsylvania with its principal place of business Locust Lane, Harrisburg, Pennsylvania 17109. . . . , 2. Defendants, Frank Deitch and Samuel E. Deitch, are adult individuals who reside in Cumberland County. 3. Defendants, Frank Deitch and Samuel E. Deitch, are now or at all relevant times in the past traded and did business as Deitch Brothers Pest Control, a Pennsylvania Partnership comprised of Frank Deitch and Samuel Deitch, having its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania 17013. 4. Defendants, Frank Deitch and Samuel E. Deitch, are now or at all relevant times in the past traded and did business as Penn Pest of Carlisle, Inc., a Pennsylvania partnership comprised of Frank Deitch and Samuel Deitch, having its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania 17013. 5. On or about March 2, 1995, Plaintiff Penn Pest, Inc. entered into a License and Consulting Agreement (~Agreement-I with Frank Deitch and Samuel Deitch as officers of Penn Pest of Carlisle, Inc. and with Frank Deitch and Samuel Deitch as Partners of Deitch Brothers Pest Control. (See Exhibit -A-, License and Consulting Agreement, attached hereto and made a part hereof by reference.) 6. This equity action is therefore also brought againat Frank Deitch and Samuel Deitch as individuals baaed Upon the 2 . . concept of joint and several liability for the members of a partnership. 7. Through the Agreement, the Plaintiff purchased for actual consideration of $8,000 all customer accounts of Deitch Brothers Pest Control, a partnership previously operated by the Defendants. Exhibit "A~, Paragraph II. 8. Through the Agreement, the Plaintiff agreed to supply the defendant logistical and technical support and in return Defendants would be granted a license to use the Plaintiff's Trade Name, Trademark, and Logo in parts of Cumberland County. See Exhibit "A~, Paragraph VII. 9. Through the Agreement, Defendants agreed to pay to the Plaintiff 10% of their gross income on a weekly basis, in addition to the initial purchase price of the license. See Exhibit "A~, Paragraph IV. 10. The Agreement also contains a "Covenant Not to Compete- which provides that in the event that the Aqreement is terainated the Defendants will ~not engage in direct business co.petition1D a similar retail business, either as owner, partner, manager, or consultant for a period of two (21 years froa date of termination of this License Agreement and within (SOl mile radius of the location of the principal place business in Cumberland County.~ 3 . . 11. As a result of the Agreement and because the Defendants were allowed access to the very foundation of Penn Pest, Inc., business strategies, including but not limited to, customer lists, sales plans, growth plans, and Housing Authority Contracts in Carlisle and Harrisburg, the Defendants have increased their yearly revenue to over $70,000 with the potential to do approximately $100,000 in the upcoming year. 12. Now, having achieved greatly increased revenues through the Agreement and based on the business expertise and support of the Plaintiff, the Defendant has refused to pay the Plaintiff its rightful fee. ~ .... ... 13. In violation of the License and Consulting Agreement, the Defendants are currently in default of their obligation to remit 10% of the weekly gross proceeds. Exhibit ~A~, Paragraph IV. 14. Plaintiff is suffering and continues to suffer serious economic losses because the Defendants have refused to remit 10' of their gross receipts as they have contracted to do. 15. The Defendant, by not paying the required percentage of the gross revenues to the Plaintiff and by failing to abide by the terms of the Agreement's ~Covenant not to Compete,. is utilizing all the benefits of the association with the Plaintiff without properly compensating the Plaintiff for th... .~ice.. 4 . . 16. In addition to not paying the required percentage of gross revenue to the Plaintiff, and in violation of the License and Consulting Agreement, Defendants have attempted to terminate their relationship with the Plaintiff and have so advised the Plaintiff of their intentions. 17. In violation of the Agreement's "Covenant Not to Compete," Defendant, Frank Deitch, is operating a Pest Control company under the name Deitch Pest Control. Exhibit "A", Paragraph XV. 18. Defendant, Frank Deitch, is not only operating a pest control business in violation of the Agreement in Cumberland County but is also soliciting customers in Dauphin, York, and Franklin Counties. 19. These actions are causing serious and irreparable economic harm to the Plaintiff as well as serious and irreparable harm to the Plaintiff's business reputation. 20. In violation of the License and Consulting Agreement, Defendants have not offered the Plaintiff the right of first refusal to buy back all assets of the business limited to, all customer accounts, accounts receivable, inventory, furnishings, fixtures, and equipment. Paragraph XII, Clause F. ~ s . . 21. In violation of the License and Consulting Agreement, the Defendants have failed and refused and continue to fail and refuse to either return the list of customer accounts purchased by the Plaintiff or return the $8,000 purchase price paid by the Plaintiff for these accounts. Exhibit "A", Paragraph XII, Clause G. 22. In violation of the License and Consulting Agreement, the Defendants have refused to go to arbitration to settle this dispute. Exhibit "A", Paragraph XIX. 23. Defendants are attempting to continue to provide services to accounts that were purchased by the Plaintiffs. 24. These actions are causing serious and irreparable economic harm to the Plaintiff as well as serious and irreparable harm to the Plaintiff's business reputation. 25. Plaintiff, because it cannot obtain the list of customer accounts from the Defendants is unable to properly service existing Penn Pest, Inc., clients. 26. As a result, Plaintiffs are suffering and continue to suffer serious losses to their business reputation because there is no longer a designated Penn Pest. Inc., representative to service cumberland County. 6 . . 27. Each day that goes by causes further damage to the business reputation of the Plaintiff and their ability to conduct a successful ongoing business enterprise in Cumberland County. 28. At all times, Plaintiff has fulfilled all of its obligations under the Agreement. Plaintiff comes into Equity in good faith and with clean hands. WHEREFORE, The Plaintiff respectfully requests that this Honorable Court declare that the License and Consulting Agreement entered into between the Plaintiff and the Defendants valid and binding and order the Defendants to abide by the agreement and the non-competition clause therein. Plaintiff respectfully requests this Honorable Court to order the Defendants to immediately cease competing with the Plaintiff in any manner whatsoever involving pest control services, including but not limited to: al solicitation of Realtors; bl performance of real estate inspections; cl performance of termite treatments; dl performance of pest control treatments; el soliciting new customers; fl providing estimates to these new customers; and g) servicing existing Penn Pest, Inc. accounts. Plaintiff requests strict enforcement of the non-competition clause. Plaintiff respectfully requests this Honorable Court to order the Defendants to immediately stop servicing accounts 7 l ~ I I ! I I , , , " . VERIFICATION I, Patrick E. Moran, President of Penn Pest, Inc., am authorized to make the fol1owinq verification on behalf of said corporation. I verify that the statements made in the foreqoinq Complaint are true and correct to the best of my know1edqe, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. 14904, re1atinq to unsworn falsification to authorities. PENN PEST. INC. By??LJ~~~ Patrick E. Moran, ~S";~dlEAL) President Dated: S -Z/- '7 ,.. . LICENSB AND CONSULTINO AOREEMENT BY AND AMONO PBHIf PHS'!'. IRC. aim PBIOI PBST 01' CARLISLE. INC. AND DEITCH BRO'l'HBRS PBST CONTROL THIS LICENSE AND CONSn~ AGREEMENT t"LicePfil&- Aqreement" or 'Z... ~ ,.,.,,,1rJY ~'p" "Aqreement") is made this day of March, 1995, by and amonq PENN PEST, INC., a Pennsylvania corporation, havinq its principal place of business at 4601 Locust Lane, Harrisburq, Pennsylvania, 17109, ("Licensor"). and PENN PEST OF CARLISLE, INC., a Pennsylvania corporation, havinq its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania 17013, and DEITCH BROTHERS PEST CONTROL, a Pennsylvania partnership, havinq its principal place of business at 433 Ponderosa Road, Carlisle, Pennsylvania, 17013. (singularly and collectively hereinafter "Licensee") (all three parties singularly "Party" and collectively "Parties") and provides that:. . ~ . RECITALS: WHEREAS, Licensor is in the business of providinq termite and pest control services and providinq logistical support and consultation to other similar businesses: and WHEREAS, Licensor has developed a qood reputation and bu. in... qoodvil1 within its community: and . . WHEREAS, Licensor is the proprietor of the trade name "Penn Pest, Inc." ("Trade Name") 1 and WHEREAS, Licensee desires to acquire a license for the riqht to use Licensor's Trade Name, Trademark and Loqo in parts of CUmberland County as defined hereinafter, and have access to Licensor's business expertise: and WHEREAS, Licensor hereby aqrees to permit Licensee to use its Trade Name, Trademark and Loqo in parts of cumberland County as detined hereinafter, and turther aqrees to provide consultinq services in accordance with the tel'll8 and conditions .et forth below: NOW THEREFORE, in consideration of the mutual covenants and promises set forth herein and with the intent to be l89a1ly bound hereby the Parties do aqree as follows: I. LICENSE. This license includes the exclusive use of the Licensor's Trade Name, Trademark, Loqo and the Licensor's support .ervices within the Territory as defined hereatter ("License"). II. PURCHASE PRICE OF LICENSE. Licensee shall pay to ~icensor Seven Thousand Dollars ($7,000.00) for the purchase ot the License. The Purchase price is to be paid in the form of a monthly' payment, the first of each month, tor a twenty-tour (24) month period. The tirst payment is due and payable on April 1, 1995. All payments are to be made in person at or by uil to 4601 Locust Lane, Harrisburq, PA ("Corporate otfices") or as the location uy be chanqed trom time to time. .. . III. PURCHASE OF DEITCH BROTHERS PEST CONTROL ACCOUNTS. Licensor shall credit Licensee the sum ot Eight Thousand Dollars ($8,000.00) for the purchase ot all DEITCH BROTHERS PEST CONTROL accounts in one lump sum at the time ot execution of this Agreement. IV. LICENSE FEE. Licensee shall pay Licensor a license fee of ten (10) per cent of the gross income, paYable weekly. It is agreed that Licensor shall commit and utilize two (2) per cent of the license fee for advertising as a part ot the support services provided for herein. V. TERRITORY. This License Agreement grants to Licensee exclusive 11ge ot the License within the County of CUmberland, PennsYlvania, specifically exclUding however, all ot the Borough of Mechanicsburg and the area East ot Route 114 ("Territory"). Licensor agrees not to grant the right to Use Licensor's Trad. Name, Trademark and Logo to any other 'licensee within the .aid Territory while this License and Consulting Agreement remains in etfect. Licensee shall have the right but not license to operate his business in other counties east ot CUmberland county. How.v.r, in the event that Licensor grants any entity a licen.. to operate in counti.s other than CUmberland County, License. agre.. to . . automatically cease doing bus~ness in those counties. VI. EXCLUSIVR LrClms~. A. This License is granted by Lic.nsor .xclu.ively to Lic.n.... It may not b. .old, a.signed, or tran.ferred to any -3- ~ lfl. .... . third party without Licensor's express written approval, which approval shall not be unreasonably withheld. B. In the event that the License is sold, assigned or transterred, the Licensor shall receive a tee in an amount not to ' exceed three thousand dollars ($3,000.00). VII. USE OF TRADEMARKS. A. Whenever the Licensee uses the Trade Name, Trademark or Logo in advertising or in any other manner in connection with the goods or services which it sells, distributes, or provides, the Licensee shall clearly indicate the Licensor's ownership thereot. The Licensee shall provide the Licensor with samples of all literature, packages, labels, labelling and advertising prepared by or tor the Licensee and intended to be used by Licensee. When using the Trademark under this Agreement, the Licensee undertakes to comply with all laws pertaining to trademarks in torce at any time in the Territory, including, but not limited to, compliance with marking requirements. B. Licensee's apparel shall be in accordance with the Licensor's unitorm ot navy blue slacks and white shirts with the Licensor's Logo prominently displayed thereon unless and until a unitorm change is made by the Licensor. Licensee's vehicles shall be either navy blue or white in color and placarded with Licensor's ',Logo, unless and until a change is made by Licensor. " VIII. LOGISTICAL AND CONSULTING SUPPORT. The Licensor agrees to provide the tollowing support to the Licensee: A. telephone answering services, -4- -- ... B. all calls generated trom advertised phone numbers will be routed directly to the Corporate ottices with charges tor calls paid by the licensee, C. billings, including collection ot accounts receivable, D. training, E. assist in account development, F. advertising placement, G. assist in obtaining insurance, H. purchase of inventory and equipment at Licensor's cost, I. assist in licensing procedures, and J. any other services Licensor wishes to make available to Licensee. IX. LIMITED RIGHT TO PROSPECTIVE CUSTOMERS. In the event that there are any prospective customers ("Leads") in the Territory and the Licensee for whatever reason decides not to submit a proposal to or accept the Lead as a customer, then Licensee agrees to permit Licensor the limited right to operate within the licensed Territory tor the sole purpose ot submitting a proposal to and/or servicing the Lead. Licensee agrees to waive all right. under this Agreement to service the Lead. X. INDEMNITY. The Licensor aSSWDes no liability to the -Licensee or to third partie. with respect to the performanCe characteristics of the qoods or services provided by Licensee under the Trade Name, Trademark, or Loqo or to the use of the Trade H..., Trademark, or Loqo in the Territory, and the Licens.. hereby indemnities and holds harmless the Licensor against all loes.., damaqes, and expenses, including attorney's tee., incurred a. a -5- "'"" .. result of or related to claims of Licensee or third persons involvinq the manufacture of the qoods; sale of the qoods by Licensee or services by Licensee or use of the Trade Name, Trademark, or Logo by Licensee. XI. RIGHT TO AUDIT. Complete and accurate accounts of all transactions of the Licensee shall be kept in proper books of accountinq. Such books of account and other records of the Licensee shall, at all times, be kept in the place of business of the Lic.ns.. and Licensor shall have acc.ss to and may, upon qiving reasonable notic., insp.ct and copy any of them for purpos.s of determining Licensee's qross income. ~II. TERMINATION. A. Exc.pt as otherwise provided herein, th18 Aqr.....nt shall remain in full force and effect from the first day Lic.ns.. operates his business. B. Criminal Proceedinas. If the Licens.. or its offic.rs are convicted in a criminal proceeding of any wrongdoing arising from the operation of the busin.ss, the Licensor aay i-.diately terminate this License. C. civil Proceedinas. If a monetary judqllent 18 entered, against the Lic.nsee as the result of any litigation in any civil proc.eding arising froll the operat-ion of the business, Which would ~ advers.1y affect the business r.putation of Licensor, the Lic.nsor Illay i..ediat.ly terminate this Lic.ns.. D. NonD.rformanc.. Should the License. fail to coaply with any provision of this Agr....nt, the Lic.nsor may terainat. this Agree..nt upon thirty (30) days writt.n notice to the Llcenlte, ~15- I i I .- ...... " . . , I I I l provided that the Licensee has not corrected such detault durinq the notice period. E. Assignment: ReceivershiD: BankruDtcV. It the Licensee makes any assiqnment ot assets or business tor the benetit ot creditors, or it a trustee or receiver is appointed to administer or conduct its business or attairs, or it is adjudged in any 1eqal proceedinq to be either voluntary or involuntary bankrupt, or if any portion ot the Licensee's business is awarded to a third party, then all the rights qranted herein shall torthwith cease and terminate without prior notice or legal action by the Licensor. F. Involuntarv Dissolution. Upon the occurrence ot involuntary tiisso1ution of any sort including, but not limited to, death or permanent disability, Licensee shall give a right ot tirst retusal to Licensor to buy back all assets ot the business including, but not limited to, accounts, accoum..: "eceivable, inventory, turnishings, tixtures, equipment, leases and all other relevant items at such terms and conditions as the Parties may agree. In the event Licensor does not wish to exercise this right ot tirst retusa1, the Licensee may liquidate its assets by se1linq to the general public. G. It Licensor terminates the License tor just cause, as provided tor in this section XII B. through E., the accounts, accounts receivable, work in progress and customer lists ot the Licensee shall automatically become the property ot the Licensor. Additionally, the Licensor in the event that Licensee sells the business shall have the right ot tirst retusal to buy back the remaining assets as provided tor at Section XII F. otherwise, the physical assets ot the Licensee shall remain its property. -7- , ., . ~ . XIII. CONFESSION OF JUDGMENT. In the event ot detault by Licensee, licensee hereby authorizes any attorney or any court ot record in Pennsylvania, or elsewhere, to appear tor Licensee in any action brought on this License Agreement and to contess judgment against Licensee tor all sums then due pursuant to the terms ot the License Agreement and tor costs ot suit and attorney's commission ot ten per cent (lOt), together with ten per cent (lOt) interest on any judgment obtained by Licensor atter default, including interest at that rate trom and atter the date ot any Sheritt's sale until actual payment is made by the Sheriff to Licensor or the tull amount due Licensor, and tor so doing this shall be good and sutticient warrant. Licensee waives and relinquishes all errors, detects, and impertections in the entry of judgment as atoresaid, or in any proceeding pursuant thereto, and all bene tits under any law or rule ot court relating to a stay ot execution or exempting any property from levy or sale under execution. The authority herein granted to contess judgment shall not be exhausted by any exercise thereot but shall continue trom time to time and at such times until all obligations ot Licensee to Licensor have been fully discharqed. XIV. OWNERSHIP OF TRADEMARK. The Licensee acknowledges the. Licensor's exclusive right, title and interest in and to the Trade Name, Trademark, and Logo and will not at any time do or cau.~io be done any act or thing contesting or in any way i~airinq or tending to impair any part ot such right, title and interest. In connection with the use ot the Trade Na.., Trad_ark or Logo, the License. shall not in any unner repre.ent that it ha. any ownership in the Trade Name, Trade.ark, or Logo or registration -8- . '1 ' ~ 1"\ . .. thereof, and the Licensee acknowledges that the use of the Trade Name, Trademark, or Logo shall not create in the Licensee's favor, any right, title or interest in or to the Trade Name, Trademark, or Logo but all uses of the Trade Name, Trademark, or Logo by the Licensee shall inure to the benefit of the Licensor. Upon termination of this Agreement in any manner provided herein, the Licensee will cease and desist from all use of the Trade Name, Trademark, or Logo in any way (and will deliver up to Licensor, or its duly authorized representatives, all material and papers upon which the Trade Name, Trademark, or Logo appears), and the Licensee shall at no time adopt or use, without the Licensor's prior written consent, any word or mark which is likely to be similar or confusing with the Trade Name. Trademark, or Logo. XV. COVENANT NOT TO COMPETE. Licensee agrees that in the event that the License Agreement is terminated as provided for under this Agreement, Licensee will not engage in dir.ct business competition in a similar retail business, eith.r as an own.r, partner, shareholder, manager, or consultant for a period of two (2) years from the date of termination of this License Agr....nt and within a tifty (50) mile radius of the location of the principal place of business in cumberland County. XVI. PRICING. All retail prices for sale of .erchandise and services by Licens.. shall-be sugg.st.d by Licensor a. part of its consulting services. Licens.. shall have full control over the actual pricing charqed for ita sale of .erchandise and .ervicu within its lic.nse t.rritory. -g- .. . "...., ,..., . .. XVII. EXECUTION OF DOCUMENTS. Each Party shall, at the request of the other, execute, acknowledge and deliver any documents which may be necessary to carry out fully and effectively the terms of this Agreement. XVIII. NOTICES. Any notices required or permitted to be given under this Agreement shall be deemed sufficiently given if mailed by registered mail, postage prepaid, addressed to the Party to be notified at its address shown at the beginning of this Agreement, or at such other address as may be furnished in writing to the notifying party. XIX. ARBITRATION. A. All claims, disputes, and other matters in question between the parties to this License and consulting Agreement, arising out of or relating to this Agreement or any breach or alleged breach of this Agreement, will be decided by arbitration unless the Parties otherwise mutually agree in writing. B. The Parties agree upon one arbitrator, otherwise th.r. shall b. three, one named in writing by each Party of this Agreement within ten (10) days after notice of arbitration is served by either Party upon the other, and a third arbitrator selected by these two (2) arbitrators within ten (10) days . th.reaft.r. No one shall s.rve as an arbitrator who 18 in any way financially interested in this Agr....nt or in the affairs of either Party h.r.to. c. This agreement to arbitrate shall be specifically enforceable under the prevaillrl9 arbitration laws. The award rendered by the arbitrator(s) will be find and blndlnq, and ~10- ~ ~ ~ I .0 . . judgment may be entered upon it in accordance with the applicable law in any court that has jurisdiction over the decision. xx. SUCCESSORS AND ASSIGNS. This License Agreement shall be binding on the Successors, Heirs and Assigns or each Party. XXI. HEADINGS. The headings are provided for convenience or identification only and are not to be construed as having any legal significance. XXII. PENNSYLVANIA LAW TO APPLY. This Agreement shall be construed under and in accordance with the laws or the COlDIDonwealth or pennsylvania and all obligations of the parties created hereunder are performable in Dauphin County, pennsylvania. XXIII. LEGAL CONSTRUCTION. In the event anyone or more or the provisions contained in this Agreement shall ror any reason be held invalid, il1eqal or unenforceable in any respect,_ the invalidity, illeqality or unenforceability shall not affect any other provision thereof and this Agreement shall be construed as if such invalid, illeqa1 or unenforceable provision had never been contained herein. XXIV. SOLE AGRE1MEN'l' OF THE PARTIES. This AcJr8...nt constitutes the .ole and only agree.ent of the parti.. hereto and supersedes any prior understanding or written or oral a~nta between the partie. re.pecting the within subject aatt.r. -11- ., . """ ,...., . ., . . , . xxv. AMENDMENT. No' amendment, modification or alteration ot the terms hereot shall be binding unless the same be in writing, dated subsequent to the date hereot and duly executed by the Parties hereto. XXVI. WAIVER OF DEFAULT. No waiver by the Parties hereto ot any detault or breach ot any term, condition or covenant ot this Agreement shall be deemed to be a waiver ot any other breach ot the same or any other term, condition or covenant contained herein. IN WITNESS WHEREOF the Parties hereto have set their hands and seals the day and year tirst written above. ATTEST: ~,~,. ,~'-c,.t--k~~ ATTEST: ~~'-~.~~~ WITNESS: ,-~~e. \-\o.~~ WITNESS: \...~~, ,-. ~ ~ <.u.l..Q.. I..;) . PENN PEST, INC. QjJf:~ President (SEAL) (Licensor) PENN PEST OF CARLISLE, INC. "1J.. 8>~ President (SEAL) (Licensee) DEITCH BROTHERS PEST CONTROL {-.L ;;~ - Partner ( SEAL) (Licensee) DEITCH BROTHERS PEST CONTROL ~~~SIAL) Partner ( icen...) -12- ~ rfh;;!JJ) ~""" \~Q~ ~ t V".. ~1tSul....T - fir--. !e$-r rF t:MkISI . .f . PENN PEST, INC., A PENNSYLVANIA CORPORATION Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA V. No. 17. N 79 [r.~(" T....-.. FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; . . . . CIVIL ACTION - EQUITY . . FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION . . . . Defendants ORDER '1'0 APPEAR AT PRELIMINARY HEARING To: FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS, FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., AND FRANK AND SAM DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL Take notice that you are hereby ordered you to appear on ~, 1997 at :.6.:.i:L 0' clock A H., Room ~ , Court of Common Pleas, Cumberland County, Carlisle, Pennsylvania, in order that a hearinq may be held to determine whether or not the preliminary injunction prayed for by the Plaintiff should be issued. Dated ~~\ .1't~7 8Y(1/ ~ J. -- 3/~'ln .. S"rnIr~'s RETURN - REGULAR CAS~ NU: 1997-01477 P CUMM'-JNW~:^I.T11 UF N~lltlSYLV^HIA: CIJIJNTY UF CUMfJErlLANt> 1'~:HN r~:ST IHe VS. [,~; [reH rRAHK fo.T AI. sn:vfo; WlllSrrYR , Sh':'nff or Oeputy Sher\.tf of (-UMULUI.ANII County. Pennsylvan1a. who being duly sworn accord1ng t,.,1 aw, says, the V1 th1n CUMP!.^ INT . !':l.JiJ' TY vas eerved up,.,n n~: {TGIl FRANK Mcfendant. at 1&2\il:00 HOURS. Nl the ~5th :lay ':)f M;Jrr:h 19':'7 at CUMfJ~:RLAND Cl.I blH::IH FF' S [l;':f'T. 'lNfo. CljURTHllllSl:: Sl.JtJARfo; CARLIS\Y.. PA 1701! . CHMBt::RI.AND C'-'Utl t y. Pennsy 1 vall1a. b,' har;d' nQ t." !'-RAN" DI:: ITCH Cl t r 'J€' and at tested copy of the CI.iMPLAIIlT - HlUI n 03n,j at the S:lme tlme dlrec't.lng tL1.2. 3tte-ntl.:>n t':l the; contents thereof. the Sh-?flff.s Cests: rJock~t 1 ng '.:iervlce ~ Aff1diiV1t ~;urcharg<? 1>!.\J~ . Ill" .00 2.00 ',~(. i;.rIS"'fH~---<.~ !r:'.C" Kiln... ".ef111 ~~0.0~ A. MAhK wIN1LnS ~3f~E.:"1'397 , by ~h,--~~ t \~ _ I.'e:~.v't\. :~~ "',"<1":; :]'1'~ Sl,lhZ:CTlbES',f tn t.f?fcrE? mE' "" ":::- 1- d::1y.,f ~ l' q 1 A. tl. .~ l L__ Q n.,.(l,... ~~ ~r~~'l~n~t~l~ , ... -- SHFn IFF' F;CT!)F~i f.CLULAh CAS~ NU: 1~91-01177 P C'lMMIjNW~:^L rH IJF ['~.NNSYL V M:! A: C!)UNTY f)t-' CUMH~:rILMlD n:NN r,;';r INC VS, U~: '- lei! r'RANI\ ~: r AI. s j'I.:v~ WllISTI.~;R hRrJft 7r 0~puty Sh~r'lf ot CUMt:r:i.:I AND C~,unty. PiE'noSrlVanl~~ wt!Q 11~),l~g ',-11Il, sw{'\(n accoI"ding to taw. says. thl!' wlthu. (Q.rt!'~~JlIL_:.~_!if21U;.:L_"",,__. upon ur:! Tell SM\U~:l.. t: vas eerve~ defendant, at .~151~,:.,;'~~ HCiU"~~. ',-;XI thlt. ~'.'_!l,\. c,;~}' of tt3r,~ti 1 ':1 ':l 7 3, t 11 '3 LIM~:r:lVL k:.!AL..... ., .....,.....,.'""~.._._. 1 7013 .__._._".~.._......~".__ _...._~,,__ . CUMBERLAlW (Alii ISU .. F:.A Cc<unt~i. Pennsylvania. toy h~l~, lJt!,J · .-';.>^":Jt..L..J.Ltl f('H__ a truE> and att..ste.j COpy d Pi<, ....'J.!'J::L~l1!L:..._t.1Ul!'{ tog"U.'?r Wl th NOn t,;t:.__..._ "--~",,-,,,'-"~-"""'-'--'~-~~-~-~" and at the same tllll... d1r"c~ u.,;/ I}J.1S .q"n~l<'n t.) the contents the-reot. ,;:h::"ii.!f-(f Cost~: !>0CKf't t n? '<Ci'!lC€, Affl(1~""'1 t ;';urchargE' -r. a;~~MA~tf!:!: rr;--n0,iii,r" l'\r~ne. '" li'n f,. iJI(;' I J-' : \i'~ ;';'. i~~ pr:.--r:!- ^ . l'!A H ~ ill un u; t1' :--~' 1 i'~rx', ly ~\-- - \ .' _....'''1\lIPPU~y huH! w . ~ ~,.I S:--t~ ';: ";\_ r 1 t ;r<;J t ';' ~: t-)f~-.' ~~; .. J'E- "3:>.'1 ~ <;1 A.;, " ~ ~F9'""""" .~. the . . -. ~ \D .... .. ~ .:J [- ...i. Q .::. ~- - 0:;. . :a:: d~ , i cc 92 it CI :~lQ rJJ - ~~'.. ti:1i' Q: .::'~fE"'" ~ Q., ~, -. cz & & roo ~ 0\ a I~U I~H tlF:F: llI-E .. !!h ii ~- lun If If F:f ~ !I~i . - - ~ .. ,~ . . . . l.f/1c(97 ... . . - . .. .. . ~ . PENN PEST, INC.. A PENNSYLVANIA CORPORATION, Plaintiff : v. FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION, Defendants TO: Penn Pest, Inc. . IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA No. 97-1477 Equity Term : CIVIL ACTION - EQUITY . . . . .O~IC8 m PLBAD You are hereby notified to plead to the enclosed New Matter and Counterclaim within twenty (20) days from service hereof, or a default jUdgment may be entered against you. Date: '-1"0-'1' SAlDIS, GUIDO. SHUfF Ie MASl.AND 26 W. iii.. SInIot CarIiale. '" SAlOIS, GUIDO, SHUFF & MASLAND / By: ~ b"2 ~.. 0 "-(" , Scott D. Moore, Esquire Supreme Ct. 1.0. I 55694 26 West High Street Carlisle, PA 17013 (717) 243-6222 Attorney for Defendants . . PENN PEST, INC., A . IN THE COURT OF COMMON PLEAS . PENNSYLVANIA CORPORATION, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff v. No. 97-1477 Equity Term FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; . . : FRANK DEITCH AND . . SAMUEL DEITCH TRADING AS . . DEITCH BROTHERS PEST CONTROL; : CIVIL ACTION - EQUITY FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE. INC.. A PENNSYLVANIA CORPORATION, . . Defendants . . AJrSWER WITH U1f HAftRR ~ :=~CLAIH 01' FIWfK DBITCH 11m VI r DBITCR BROTII8RS PBST C~~L ~ 'B" PUT 01' ~ISLB .C. PLAIJTII'I"S COHPLAI~ AND NOW, comes Frank Deitch indiVidually, Deitch Brothers Pest Control and Penn Pest of CarliSle, Inc. by and throuqh its attorneys Saidis, Guido, Shuff , Hasland and files this Answer with New Matter and CounterClaim and represents as follows: 1. Admitted. SAJDIS, GUIDO, SHlJFF a MASLAND :16 w. Hl&Il Slnol CIrfioIt, PA 2. Admitted. 3. Admitted in part and denied in part. It is admitted that from November of 1993 throuqh March of 1995 Defendants Frank Deitch and Samuel E. Deitch traded and did business as Deitch Brothers Pest Control, a pennsylvania partnerShip comprised of Frank DeitCh and Samuel Deitch with a prinCipal place of bus!neaa llt 433 Ponderon Road, CUlhle, Pennaylvllnia 17013. Itia -. .- "" \ . . specifically denied that they conducted business as partners after March of 1995. 4. Admitted in part and denied in part. It is admitted that Frank Deitch was the President of Penn Pest of Carlisle, Inc., a Pennsylvania Corporation from March of 1995 until the end of January 1997 and that its principal place of business was located at 433 ponderosa Road, Carlisle. Pennsylvania 17013. It is further admitted that Defendant Samuel Deitch worked for the corporation from March of 1995 until July of 1996. It is ~ specifically denied that Penn Pest of Carlisle, Inc. is a Pennsylvania Partnership. It is also specifically denied that Defendants Frank Deitch and Samuel Deitch are still operating Penn Pest of Carlisle, Inc. ;; 5. Admitted. 6. Denied. The averments of paragraph 6 are conclusions .... ...' -' of law to which no responsive pleading is required. 7. Denied. The averments of paragraph 7 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, the Agreement speaks for itself. By way of further answer, paragraph II of the Agreement sets forth a provision for purchase of accounts. 8. Denied. The averments of paragraph 8 are conclusions SAlOIS, GUIDO. I SHUlT ol MASLAND 26W.lfip_ c.tiIIe. '" of law to which no responsive pleading is required. To the extent a response is deemed required, the Agreement speaks for itself. I I. I of law to which no responsive pleading is required. 9. Denied. The averments of paragraph 9 are conclusions To tbe , ~ I \i 'I I' 'I ;j '1 . . extent a response is deemed required, the Agreement speaks for itself. 10. Denied. The averments of paragraph 10 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, the Agreement speaks for itself. 11. Denied. The averments of paragraph 11 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that as a result of the Agreement and because the Defendants were allowed access to the very foundation of Penn Pest, Inc., business strategies, including but not limited to, customer lists, sales plans, growth plans, and Housing Authority Contracts in Carlisle and Harrisburg, the Defendants have increased their yearly revenue to over $70,000.00 with the potential to do approximately $100,000.00 in the upcoming year. 12. Denied. The averments of paragraph 12 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that increased revenues resulted from the Agreement and business expertise and support of the Plaintiff. By way of further SAlOIS, GUIDO. SHUfT a MASLAND 26W"''''_ c-.", answer, it is specifically denied that Defendant has refused to pay Plaintiff its rightful fee. 13. Denied. The averments of paragraph 13 are conclusions of law to which no relponsive pleading is required. To the extent a relponee is deemed required, it is specifically denied ~ Ii H II I I i I I I I i I I 1,,0 I SAlDIS, GUIDO. I SHUFF A MASLAND I 26W.ltipS..... C..li...."" , .. ,.. that the Defendants are currently in default of their obligations to remit ten (10) percent of the weekly gross proceeds. 14. Denied. The averments of paragraph 14 are conclusions of law to which no responsive pleading is required. To the extent deemed required, after a reasonable response investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth averments of paragraph 14. Said averments are, therefore, denied and strict proof is demanded at the time of trial. 15. Denied. The averments of paragraph 15 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that the Defendant, by not paying the required percentages of the gross revenues to the Plaintiff by failing to abide by the terms of the Agreement. s Covenant Not to Compete. is utilizing all benefits of the association of Plaintiff without properly compensating the Plaintiff for the services. 16. Admitted in part and denied in part. It is admitted that Defendants have attempted to terminate the relationship of the Plaintiff and advised the Plaintiff of their intentions. It is specifically denied that the termination of the relationship is in violation of the License and Consulting Agreement. By way further answer, it is specifically denied that Plaintiffs are entitled to any percentage of gross revenue from Defendants. 17. Oer-ied. The averments of paragraph 17 are conclusions ;,f law to which no responsive pleading is required. To the extent a re~ponse is deemed required, it is specifically denied SAlDIS. GUIDO. SHUFF ... MASLAND l6W.HiPSlmt c.t.....M .. . that in violation of the Agreement's Covenant Not to Compete, Defendant, Frank Deitch, is operating a pest control company under the name of Deitch Pest Control. By way of further answer, Frank Deitch is an employee of Deitch Pest Control. 18. Denied. The averments of paragraph 18 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that Frank Deitch is soliciting customers in Dauphin, York, and Franklin Counties. By way of further answer, it specifically denied that Frank Deitch is operating a pest control business in violation of the Agreement in Cumberland County. 19. Denied. The averments of paragraph 19 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, the Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 19. Said averments are, therefore, denied and strict proof is demanded at the time of trial. 20. Denied. The averments of paragraph 20 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied I that in violation of the License and Consulting Agreement, I I I II II ~ 'I !, Ii 'I H ~ I, H lJ Ii II Defendants have not offered the Plaintiff the right of first refusal to buy back all assets of the business including, but not limited all to, customer accounts receivable, accounts, inventory. furnishings, fixtures, and equipment. By way of further answer, Plaintiffs are not entitled to a right of first ,.. . refusal. In the alternative, Plaintiff has made no offer to buy back assets of the business. 21. Denied. The averments of paragraph 21 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that in violation of the License and Consulting Agreement, Defendants have failed and refused and continue to fail and refuse to either return the list of customer accounts purchased by the Plaintiff or return the $8,000.00 purchase price paid by the Plaintiff for these accounts. By way of further answer, Plaintiff has a list of customer accounts. Also, by way of further answer, paragraph XII clause G has not been implicated. 22. Denied. The averments of paragraph 22 are conclusions of law to which no responsive pleading is required. To the ex~ent a response is deemed required, it is specifically denied that in violation of License and Consulting Agreement, Defendant have refused to go to arbitration to settle this dispute. 23. Admitted. By way of further answer, Plaintiffs have told customers to contact Defendants for service. 24. Denied. The averments of paragraph 24 are conclusions of law to which no responsive pleading is required. To the SAlOIS, GUIDO. SHUFF " MASLAND 26 W,ItipSlml CarIlaIt. PA extent a response is deemed required, after reasonable inveatigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 24. Said averments are therefore denied and strict proof ia demanded at the time of trial. .'-3 SAlOIS, GUIDO. SHUFF " MASLAND 26W Ili...S..... CarliIIe. PA .. ,. 25. Denied. It is specifically denied that because it cannot obtain the list of customer accounts from the Defendants, the Plaintiff is unable to properly service existing Penn Pest, Inc. clients. To the contrary, Plaintiff has taken possession of Penn Pest of Carlisle, Inc.'s phone number and has been taking calls and servicing clients. Moreover, Plaintiff has possession of a list of customer accounts. 26. Denied. The averments of paragraph 26 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 26. Said averments are, therefore, denied and strict proof thereof is demanded at the time of trial. 27. Denied. The averments of paragraph 27 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, after reasonable investigation, Defendants are without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 27. Said averments are, therefore, denied and strict proof thereof is demanded at the time of trial. 28. Denied. The averments of paragraph 28 are conclusions of law to which no responsive pleading is required. To the extent a response is deemed required, it is specifically denied that Plaintiff has fulfilled all of its obligations under the Agreement. By way of further answer, it is specifically denied ,/ .. .. that Plaintiff comes into Equity in good faith and with clean hands. WHEREFORE, the Defendants Frank Deitch individually, Deitch Brothers Pest Control and Penn Pest of Carlisle, Inc. respectfully request the Court to dismiss Plaintiff's Complaint with prejudice and to enter judgment in favor of the Defendants and against Plaintiff together with such other and further relief as the Court deems just and appropriate. NEW HATTER 29. The averments in paragraphs 1 through 28 are incorporated herein by reference and realleged as affirmative defenses. 30. Plaintiff has an adequate remedy at law. 31. Plaintiff has not suffered any irreparable harm. 32. The restrictive covenant is not supported by adequate consideration. 33. The restrictive covenant is not reasonably restricted. 34. On March 2, 1995, the Plaintiff, Deitch Brothers Pest Control and Penn Pest of Carlisle, Inc. entered into a License and Consulting Agreement. A copy of the Agreement is attached to the Complaint as Exhibit "A", 35. Penn Pest of Carlisle, Inc. and Deitch Brother. Pest SAlOIS, GUIDO, SHUFF&< Control are the Licensees under the License and Consulting MASLAND 26 W. Hi,. S_ Agreemen t . CotllJk. PA 36. Frank Deitch is not a Licensee under this Agreement. 37. The Agreement contains a provision titled Covenant Not to Compete that states: SAlOIS, GUIDO. SHUn' A MASLAND 26W.Hip_ c_.~ ... .. Licensee agrees that in the event that the License Agreement is terminated as provided for under this Agreement, Licensee will not engage in direct business competition in a si~ilar retail business, either as an owner, partner, shareholder, manager, or consultant for a period of two (2) years from the date of termination of this License Agreement and within a fifty (50) mile radius of the location of the principal place of business in Cumberland County. 38. The Covenant Not to Compete provision is not enforceable against Frank Deitch as an individual. 39. The Covenant Not to Compete does not prevent Frank Deitch from working as an employee of a family owned company or any other pest control company. 40. The License and Consulting Agreement states that the Licensor will provide logistical and consulting support which included the following: (al Telephone answering services; (b) All calls generated for advertised phone numbers will be routed directly to the corporate offices with charges for calls paid by the Licensee; (C) Billings, including collection of accounts receivable; (d) Training; (e) Assist in account development; (f) Advertising placement; (g) Assist in obtaining insurance; (h) Purchase of inventory and equipment at Licensor's cost; and (il Assist in licensing procedures. See License and Consulting Agreement paragraph VIII, Exhibit "A" of Complaint. 41. Plaintiff failed to provide services .a required under the Agroement. ,.. ,. 42. The telephone answering services provided were inadequate and failed to provide a consistent message service for Defendant Penn Pest of Carlisle, Inc. 43. As a result, Defendant Penn Pest of Carlisle, Inc. was forced to take over this responsibility. 44. The billing procedures used by Plaintiff were inadequate and resulted in Penn Pest of Carlisle, Inc. being under paid. 45. Defendant Penn Pest of Carlisle, Inc. was forced to assume responsibility for its own accounts receivable in order to insure proper payment. 46. Rather than providing training and expertise for Defendant Penn Pest of Carlisle, Inc., Defendant Penn Pest of Carlisle, Inc. provided its services and technical support to Plaintiff. 47. Plaintiff failed to assist in any meaningful account development. SAlOIS. GUIDO. SHUFF " MASLAND 26W.l\ip_ c.rtiaI<. PA 48. Plaintiff failed to assist in obtaining insurance. 49. Plaintiff failed to assist in licensing procedures. 50. During 1996, Plaintiff requested that Defendant perform work for Plaintiff and receive a forty (40) percent commis.ion. 51. Defendant performed the requested work. 52. Plaintiff has failed to pay Defendant Penn pe.t of Carlisle, Inc. $269.80 for work performed for Penn pe.t, Inc. 53. Defendant has made demand for payment and Plalnt:1ff h.. refused to pay Defendant. .. . 54. Defendant believes that Plaintiff may owe Defendant additional commissions. 55. Defendant respectfully requests the Court to order Plaintiff to provide an accounting of all work performed by Defendant Penn Pest of Carlisle, Inc. on behalf of or at the request of Penn Pest, Inc. in 1996 and 1997. 56. In the beginning of March 1996, Plaintiff began retaining two (2) percent of gross receipts for purposes of conducting advertising. 57. Defendant believes that Plaintiff has failed to spend these monies for advertising on behalf of Defendant as required under the Agreement. 58. Defendant respectfully requests the Court to order Plaintiff to provide an accounting of the two (2) percent of gross receipts collected from Defendant for advertising. 59. Plaintiff has breached the License and Consulting Agreement and therefore does not come into the Court of Equity with clean hands. ~ .., 60. Plaintiff has taken possession of the telephone number for Penn Pest of Carlisle, Inc. 61. Plaintiff has taken posseBBion of the yellow page advertisement of Penn Pest of Carlisle, Inc. SAlOIS, GUIDO. SHUFF A MASLAND 26 w. Hip S..... Carti....PA ... .. 64. Defendant Penn Pest of Carlisle, Inc. respectfully requests the Court to enjoin Penn Pest, Inc. from using the phone number of Penn Pest of Carlisle, Inc., from and doing business as Penn Pest of Carlisle, Inc. 65. Defendant Frank Deitch respectfully requests the Court to declare that he may work for Deitch Pest Control or any other pest control company as an employee without violating the covenant not to compete contained in the March 2, 1995 License and Consulting Agreement. WHEREFORE, the Defendants Frank Deitch individually, Deitch Brothers Pest Control and Penn Pest of Carlisle, Inc. respectfully request the Court to dismiss Plaintiff's Complaint with prejudice and to enter judgment in favor of the Defendants and against Plaintiff and such other and further relief as the Court deems just and appropriate. COUJITIRCLAIM Paragraphs 29 through 65 are incorporated by reference as though fully set forth herein. WHEREFORE, the Defendants Frank Deitch individually, Deitch Brothers Pest Control and Penn Pest of Carlisle, Inc. respectfully request the Court to dismiss Plaintiff's Complaint with prejudice and to enter judgment in favor of the Defendant. and against Plaintiff. Moreover, Defendants respectfully request the COurt to enjoin Penn Pest, Inc. from using the phone number of PeDn Peat of Carlisle, Inc. and from doing business .. Penn Peat. of Carlisle, Inc. In addition, Defendants respectfully reque.t tbat .... ,. i I the Court order plaintiff to provide an accounting of all business conducted under the name of Penn Pest of Carlisle, Inc., an accounting of the two (2) percent of gross receipts collected from Defendant for advertising and an accounting of all work performed by Defendant, Penn Pest of Carlisle, Inc., on behalf of or at the request of Penn Pest, Inc. in 1996 and 1997. Further, Defendant, Frank Deitch, respectfully requests the Court to declare that Frank Deitch may work for Deitch Pest Control or any other pest control company without violating the covenant not to compete contained in the March 2, 1995 License and Consulting Agreement. , Respectfully submitted, Dated: L(-fo- "1 . SAlOIS, GUIDO, SHUFF & MASLAND ,/ C~~ I)';? --0 "" ~ ~cott D. Moore, Esquire 26 w. High Street Carlisle, PA 17013 (717) 243-6222 Attorney for Defendants " . VERIFICATION I verify that the statements made in the foregoing Answer with New Hatter and Counterclaim are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. S 4904, relating to unsworn falsification to authorities. DATED: '{-to. ~7 FYaf L!!:>~ SAlOIS, GUIDO. snu.... A MASLAND 26W.ltipSlftel CorIWe, PA --.. ,-.. 4 jJf4/q7 PENN PEST. INC,. A PENNSYLVANIA CORPORATION. Plainti ff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY. PENNSYLVANIA V, FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE. INC.. A PENNSYLVANIA CORPORATION. Defendants CIVIL ACTION - EQUITY NO. 97-1477 EQUITY TERM O1illERJ1E-.-C.llrn AND NOW. this 11th day of April. 1997. upon representation by plaitiff, Penn Pest. Inc.. that they are withdrawing their petition for a preliminary injunction against Defendant Samuel Deitch, and with the consent of Samuel Deitch, the petition see~ing a preliminary injunction against Samuel Deitch IS WITHDRAWN AND DISMISSED. A. Mark Winter. ESQuire For Plainti ff ~ ~~,i..J '4;"/f7 Scott D. Moore. ESQuire ~ For Defendant Frank Deitch :prs , , . ~ ~ PENN PEST. INC.. A PENNSYLVANIA CORPORATION. PlainU ff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY. PENNSYLVANIA V. ~ FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE. INC.. A PENNSYLVANIA CORPORATION. Defendants CIVIL ACTION - EQUITY NO. 97-1477 EQUITY TERM IN RE: IESIlJIDNY__,Qf._J1:!DMLllUlC.tt Proceedings held before the HONORABLE EDGAR B. BAYLEY. J.. Cumberland County Courthouse. Carlisle. Pennsylvania. on April 11. 1997. in Courtroom Number Two. APPEARANCES: A. MARK WINTER. ESQuire For the Plaintiff SCOTT B. MOORE, ESQuire For Defendant Fronk Deitch 7:) 1"""\ ~ 1 April 11, 1997 2 Carlisle. Pennsylvania 3 4 (Whereupon, the following testimony 5 was requested:) 6 MR. MOORE: At thi s time I would call Thomas 7 Deitch to the stand. 8 Whereupon, 9 THOMAS LAWRENCE DEITCH, 10 having been duly sworn, testified as follows: 11 DIRECT EXAMINATION 12 BY MR. MOORE: 13 Q Mr. Deitch, can you please state your full 14 name and spell your last name. 15 A Thomas Lawrence Deitch, D-e-i-t-c-h. 16 Q And your educational background? 17 A A high school graduate. 1986. and 0 lot of 18 technical training in the Dest control field. sem1nars on 19 insect biology and control. pestic1de opplicat10n and 1ts 20 safety. 21 Q Can yoU please give the Court 0 br1ef 22 employment history? 23 A I spent four years in the militarY frOM 1986 24 to 1990. after which I worked for my dad at Franko's Pest 2S Control in California. and when he sold the company, I '1 ~ ~ 1 worked for the company that purchased that. Then I workea 2 for Airborne Express os 0 courier, and then Western Parcel 3 Express os 0 courier at which time -- that was in '96. I 4 come out here in March of '96 and become 0 franchisee of 5 Penn Pest, Inc. 6 Q Hove you recently formed 0 company by the 7 nome of Deitch Pest Control? 8 A Yes, I have. 9 Q And con yOU tell the Court what things you've 10 done to set UP this company? 11 A I submitted an application for on EIN number, 12 set UP bonk accounts, had meetings with accountants to set 13 UP a payroll. and then currently working on workman's camp 14 insurance. 15 MR, WINTER: Your Honor, we would stipulate 16 that Thomas Deitch apparently had set UP an organization 17 called Deitch Pest Control. In the interest of time, we'll 18 certainly stipulate to that, 19 THE COURT: Okay. So stipulated. 20 MR. WINTER: We will even stipulate that 21 opparently he has on employee named Frank Deitch working 22 there. 23 THE COURT: So stipulated, 24 MR. WINTER: We wish the Court to take 25 specio} notice of that relationship. 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~ ,.. THE COURT: MR. MOORE: Next. That's all the Questions I hove. Your Honor, THE COURT: Any cross? MR. WINTER: Just a few. CROSS EXAMINATION BY MR. WINTER: a Mr. Deitch. you are, in fact. a franchisee and licensee of Penn Pest. Inc.. is that correct. sir? A Yes. sir. a And you have now set UP a company called Deitch Pest Control. is that correct? A Yes. sir. a And that's operating here in Cumberland County? Yes. sir. And you've hired your dad as an employee, is A a that correct? A That's correct. a Is your Uncle Sam involved with that organization 1n any way? A No. sir. Q And I see that on Monday here you had your dod sign a withholding form, is that correct? A That.s correct. 4 ~ C. -.D <? -l -to f' ~,. ., .~, ': ~., :" 'If'. !."'.: - _,:1\ ~~;';. .:p ,Ie) '~Cl f ,,'\ '} -< .-f ...'" }.-. .C) ::-.' ~h' ,. , _ t - '- .. ~ (;) ~ ,~' ..", r' ~~\. f.,. ::,.l t.~'i SG,~Hb ""1-". - -., ., ...-, ,.... ,i."""-;".i'<;~:,:,,,,",;.: ""',.....--"'" '3"Jd:1:r<B\U .....""- " ,...., PENN PEST, INC., A PENNSYLVANIA CORPORATION, PLAINTIFF V. FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS : DEITCH BROTHERS PEST CONTROL; : FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARUSLE, INC., A PENNSYLVANIA CORPORATION, DEFENDANTS .... 4/,),5/Q7 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : 97-14n EQUITY TERM PREUMINARY INJUN~Qti AND NOW, this 25th day of April, 1997, following a hearing on the merits of plalntiffs petition for a preliminary injunction, IT IS ORDERED: (1) Defendant, Frank Deitch, is preliminarily enjoined for a period of two years from March 17, 1997, from violating the provisions of the Covenant Not To Compete in paragraph 'iN of the Ucense and Consulting Agreement entered into on March 2, 1995, between Penn Pest, Inc., Ucensor, and Penn Pest of Carlisle, Inc., and Deitch Brothers Pest Control, Ucensee. (2) The preliminary injunction imposed in paragraph 1 shall include Frank Deitch working in his current capacity at Deitch Pest Control. t 1. We find that designating Frank Deitch as an "emptoyee" of Deitch Pest Control Is a subterfuge in an attempt to avoid his having to comply with the Covenant Not To Compete that he is now violating. AI ,~.. ";". "-". ,-.... \.....;~j'}~.l~tt , . <,.- ~ll .. J ,,,""j ;. ~ t~ , J i ,.....1. . ~.....,."oi _..-".... 09. 97 12 I 31 p~ "'A. MARK WINTKR,-., P03 'ID '11'1, IlIC. A ,....'lLVUU CORl'OOT10., naiJltiU I1'f TO Con'1' or COIlllO. ILIA' CtJDIllLAJIJ) COtJ1lTY, 'IDSYLVAJrD V. I'UIIE >>I1'l'Cla anl! SUUBL DJUCB AS I1'f])IVIIIVAL., 'UB DUTCH ancl IAJIVIL DIITCH TUDDrG AI DlneJI 1l0TDal JIlT cornOL, 'UB DIITCH IID4 IAJIVIL >>IITCJl 'l'UDIRG AS JID JIlT or CULI'LI, DC., A '....nvuu COOOI.&'l'tO. , '7-1677 IQVITT '1'1" Defend."ta 1~~'1"~a 1ft) "''1'--'' ft.... '10 POI'! BOD AD _, tJii. ,th day of ..y, 1117, aoae. the 'etitiollaJ:, JID 11''1', IBC., ~y it. attorney, A. M&IX WXlTII,'I'QVXII, anl! fila. thi. letition to IXteD4 Date to 'oat Bonl! anl! iJl auppo~t the~eof, ..,.2:. that I 1. Jetitione~ !i1e4 an Aotion iJl lqu1ty to .eelt to ufoJ:oe a non-oo.petitlya alauae aga1D.t De!uclut. 2. A heuiJl, wa. he1eS befon the Rollou~le JdGu a. ..,.lay oa &p~il 11, un. J. A Decidu wa.. ~an4ue4 by oJUdge aar1ey oa &pdl II, un. t ~ ~ . 05. 0 e. e 7 1 2 I 3 1 PM ... A. ~ MARK WINTKR ~ P05 10. 'etition.~ believe. anI! aver. that no ha~ ha. ~.en 40ne to the D.!.n4ant by it. failure to po.t the bonel within ten (10) clay. . 11. ,.Utionn ha. reedy.1! iJlfonaation !~oa a CUUnlan4 County ...lto~ that De!en4aDt rrank Deitoh i. now parfocainv pe.t inap.otion. in 4i~.at violation of the Cou~t oreleJ:. 1IDIJIJQJm, Jetit.1oner ~.qIleat. that the BOno2:ule Court estenel the elate !o~ JetitioDer to JG.t ita ~oncl an4 accept the ~oncl now o!!.~e4 by the 'etitioner. ..rpaotlul1y .~tte4, A. ..rt lIintn, ICI\I . 310 11. eboaolat. A.enu. .er.hey, JA 17033 (717) sn-un II) '23171 Attorney !o~ Jlailltl!t .J. P02 . .' ........ 1""'. VBRIFI~TION I, Patrick K. Koran, Pr..ident ot Penn Pe.t, Ino., .. authorilecl to .ake the tOllowing veritication on behalt ot .ald corporation. I verity that the .tatemant. made in the tor.qoing Petition, are true and oorrect to the be.t ot .Y Mowledqe, intoraation and ~.lief. I underatand that fal.. atat...nt. her.ln are ..de .ubject to the penaltie. ot 18 Pa. c... 14904, relatinq to UftIVorn tal.itioation to authorlti... PINJf PIIT, INC. ..G!.I/.,r~ ~1imJ Patriok 1:. Moran, Pre. nt Dated I 5-'-11 " I""'. "'" . (') c ;- ~.;.;, C!li;: ~(. ~,. et ~~c. (( ,. !;.: :., -. \0 ..., ~ -< I I.D ~ :x q ~I "~ "-"'~ .J ,', ". d :;:-f ~ - .. t:'" 'oJ -.. ~ EDID 15-600 ail3 s I /~q7 PENH PBST, INe., A PEmisn.VANIA . IN TIm COURT OF COHHON PLEAs . CORPoRATION , . ct1H8SRL.\ND COtlN'rr, PENNSYLVANIA . . PlaintJ.tt . . . . V. I . No. 97-1477 . . . FRANX DEITCH AND SAKt1E~ DEITCH . . AS INDIVIDUALs 1 , . . , . I . FRANJc DEITCH AND I . . SAKt1EL DZITCH TRADING ~ . CIVIL ACTION - EQUITY . DEITcH BROTHERs PEST H'l'RoL: . . . I . lRANx DJ:I1'CH AND : : -BL ""ztca ""'""'" ! . . PENH PEST OF CARLISLE, INC., A . (P~r.:..JI <<.v ~ . PENNSY.LVANtA CORPoRA'!'I N . . I . . Detendante, . . bJUNC~ION BOND ...... ...... lR.BY ......,... '!lA' 's. .."" "". "e.. plei.tift ... Ji!!ll- .TI"",, 'ure,y. ore h.,. ond t1""y boUnd on,o 'h. eo....""'h '.....yl...'. ,. the 'un of .,...... to be P"d to tho C...... "th of """,y'.on,., to un'ch ......,. .." ond 'ru,y to b. d.. we b',. our..,.... ou, ond ..to of OUt h.".. ".cuto,.. ... ..,.,.t,.to,.. f'",y by th... P,....t.. I S..led With our. ala. Dated the 8th day of _ HI" , A.D. 1997 ........ 'h. P,., t'ff f"ed . COOp"", ,. E.."y ,. 'h. COurt 0' COOoon "... to, tho eoon,y 0' C....,'.... to tho E.."y r.... "". 00",_"", ...tn., Ft..t Do'teh ... 'aou., E. DolttO. Dof..d..,.. P"Yl.. ,.t., ",., fo, .. "junetlon '0 """" the "'d d.f....., a. th.,.,. "'t'eu'",y .., 'o,th. which ..id !'junet!o. '" du'y .,..t.. on Ap'i' 2S, ,.., hy Jud.. Ed.., J. ..y,.y 0' th....id C",t on the ..t.".. 0' tho '''U'ity in the above-mentioned SUm; < ,.... WASHWGT~'WTERNAnONALWSURAN~~COMPANY POWER OF ATTORNEY KNOW All BY THESE PRESENTS: That the Washington International Insurance Company, a corporation organized and elCisting under the law. of the State of Arizona, and having lis principal olliee in the Village of Schaumburg, Illinois does hereby constitute and appoint MARY ANNE BRENNAN, DA VID A. DOMINIANI, BRENT D, HEADLEY, KAREN MCFARLAND, nNA L MAGILL AND JAMIE J. WERNER EACH IN THEIR SEPARA TE CAPACITY ita lNe and lawful allorney(sHn,fact 10 execute, seal and deliver fOt and on its behalf II surety, any and II bonds and undellakings, recognizances. conltacll of Indemnlly and other Writings obligatory in the nature thereof, which are or may be aIowed, required, or P8m1ilIed by law. slaMe, rule, regUalion, c:ont'llcl Of 0CheMise. nlthe executon of such Inslrument(s) i1 pursuance of these presents, 1Il11 be as binding Upon the said Washington International Insurance Company II fuIy and amply, 10 II Intents and purposes, as r the lame hll been duly executed and acknOVdedged by rts President and lis principal olliee, \ This Power of Attorney shall be limited In amount to $3,500,000,00 fo, any single obllgallon. This Power of AlIomey is issued pursuant 10 authority granted by the resolutions of the Board of Directors adopted March 22, 1978, July 3, 1980 and October 21,1986 Which read, in part, as fclaws: 1. The Chairman of the Board, Presiden~ VICe Presiden~ Assistant Secretary, Treasurer and Secretary may designate AlIomeys.jn-F act, and aulhofize them 10 execute on behaIt of the Company, and attach the Seal of the Company thereto, bonds, and undertakings, recognizances, COllt.do of inderntily nl OCher writings obIgatory in the nature thereof, and 10 appoint Special ~Kl, who .. hereby authorized 10 C8llft capies of rry power-d-allomey iBaued In pursuant to this section andIoI any of the By-laws of the Company, and 10 'amove, at any time, any ludl AlIomey-m-Fact or Special AItorney-m-F act and revoke the authOlily given him. The aignaturea of the Ch'Iirman of !he Board. the Presiden~ Voce Presiden~ Assistant Secretary, Treasurer and Secrw-Y. and the corporate seal of the Company, may "" aIIlxed 10 rry Power of AIlomey, certilic:ate, bond Ot undertaking relating thereto, by facaimie. My such P,'W8f of AIlomey, CIIf1lic:ate bon<; Ot unde:taking bearing such fac:simie signature Ot fac:simle aeaI aftIxed in the ordinary COUI'S(' of busines. shal be V8id and bIncing upon th.. Company IN TESTIMONY ~Cf'~~~on Internationallnsuranc: Company has caused thiS instrument to be aigned and lis COrporate seal to be affixed by lis a~...~,~~Of Janua 7, ~_^' .0. -0. -t;' ~ ~v.. "0 "-t!~ fir /,.:-:;'~~~(1';':'" ~~ N I ATIOrJAllNSURANCE COMPANY ~~: ..;'" !,..f.'" .~. \ : -"'. '0_ =!;: r,~-:z. :-: t :E: - -. \oJ.. .'.~.a ..~_ at\~ ,::;~,:~t-.:- ..::v~ ......... ...(.l,.. $.... ..~~St .~7 ... ... 'r~ ~ -.. .... ~ STATE OF llUNOIS~"", .qRIZOi ,\jI.. \\\"'~~ COUNTY OF COOK) """"..,;1111'1 On thIS 29th day of January, 1997, bfoIore me ume the indNicIu. who executed the doAt awom, said that he . the therein desaibed and authorizee ofIIc:e< of the W said instrument. the Corporate s.eaI of said Company, IN TESTIMONY WHEREOF, I have hereun my 2, , Voce-President "OFFICIAL SEAL" MICHElLE HOWERTON ~ Nlit. Sla d -.os Cornnosso\ Eqwes 09!ll1.9.l -~ instrument, to me Il8fIOnaIy known, and. berng ll\' me 1ntemationaI1nawanc:e Company; that the leal affixed to and yeatlilst aboYe written, STATE OF IlUNOtSl COUNTY OF COOK) t. !he undersigned, Va f'rew... of WASHiNGTON '~TERNA1lONAI..INSURANCE COMPANY, an ARIZONA eorpo.a.n, 00 HERESY CERTIf Y that the loregoong and attached POWER OF ATTORNEY temlllnS in fullotce and has not been moiled. and fulthet...... that AItida lll. Secilon ~ of the By,Laws 01 the Corporallon, and the RaoMlc:o'l 01,.,. &.d of Cor_IS, set foItn .. the ""- of Attorney, 8f. now in Iotce Ha 97 S'llned and S.aled ..lIle County 01 COOIl Dat4fd 1he 8th day of _ Y , 19_ ~-~ 'llPf1\ ICe Ptestdent . t . 'I S"/I;,/3!Q7 ~ -- PENN PEST, INC., A PENNSYLVANIA CORPORATION, PLAINTIFF : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA V. FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARUSLE, INC., A PENNSYLVANIA CORPORATION, DEFENDANTS . : 97-14n EQUITY TERM ~ AND NOW, this 13th day of May, 1997, IT IS ORDERED that the petition of defendants to vacate this court's order of May 9, 1997, IS DENIED. ~~1;J Edgar B. Bayley, J, A. Mark Winter, Esquire For PlaIntiff Scott D. Moore, Esquire For Defendants _ C~~ 5/"/'1'1 A'i'. :588 q/ ~ ,... ;.. ~2 c: r;;: .. ,~{:t ..:3 ~! :c: ('..>~ 9F Q". 9~ . , OC:: N fi!~ - :) >- ;,i. 7 r.: ...( . ,Illl ~ x: .!In;; .... -= '" a . . . . ~ . . .. . . . ~ . .. .tf-- un J~~~ liEE ee II ~!aJ! II ~ ( li!l ef JlE~ ~ !tii ". .. " .... .... . 4. Petitioner believes that on Hay 9, 1997, a representative of Defendant Penn Pest, Inc. appeared at the Cumberland County Prothonotary's Office and attempted to post a $10,000.00 bond dated Hay 8, 1997. 5. Petitioner believes that the representative was advised that the bond had to be posted within ten days of the April 25, 1997 Order. 6. Petitioner believes that the representative stated that his attorney told him that he had ten business days from the date of the Order to file the bond. 7. In addition, Petitioner believes that the representative did not have a certificate from the bonding company that the company was a licensed surety in Pennsylvania. 8. Subsequently, on Hay 9, 1997, Penn Pest, Inc. filed a petition to extend the date to post bond and represented that Penn Pest had acted in a timely fashion but failed to serve the Petition on counsel prior to the Order being entered. 9. The Honorable Edgar B. Bayley entered an Order on Hay 9, 1997 extending the date to post bond. 10. When bond was not posted, the injunction automatically dissolved. Goodies OIde Fashion Fudae Comoanv v. Kuiros, 408 Pa. SAlOIS, GUIDO, SHUFF A Super. 495, 502, 597 A.2d 141, 144 (1991) (a copy of the opinion I\lASLAND 26W Ilip_ is attached hereto and marked as Exhibit . A.). em... '" 11. Petitioner is prejudiced by the delay in posting bond because Petitioner has made conunitments to people to conduct work. .. .. 97 &11M . GOODIES OLDE FASHION FUDGE Y. KUJROS Clle.."" A.U .f. ~,.... ."1) magiatrat.! had a reuonable buis conclude that the contraband would be 'the pIaee to be eearehed. Grur, nopro. prior counael attempled to auppreu ty\dence, u appellant now aUllnta, tilt maPtrate'a deciaion to iIIue the war- JIIlt would have been upheld u the police oftlcen' oblervationa provided an indepen- deot baai! of probable caUle. Contrary to appellant'1 uaertion, prior counae. .u not lDtffoeti.e in this reprd, CommollMGltIt. r. PUre., 515 PL 163, 527 A.2d 973 (1987), Judpent of aentenc:e afftnned. POPOVICH, J., diaaenta. (!7_'~~) GOODIES OLDE FASHION FUDGE CO. a Pennaylnnla Corporation, Appellee, y. Pew J. XUlROS and IJJa Layell Kulroe, RaaMn4 and WIle, and XelUleth Kill- roo, Indhldlla1ly and tJdfb/a Kopper Kett1e Fudce Fador)' and Jeffrey A. KlIlroo, Appelluta. Superior Court of PeftlllylYlnia. Arrued July 31, 1991. Fi1ed Sept. 27, 19111. ~ r In auk to compel defendanta to c:eue lIIiar aecret fonnula, receipta, IlH!thoda and ~un of plaintiff and to refrain from aolicitinr or COIItactinc plaintifra euatom- en, the Court of Common P\eaa, A""rheny Count)', No, G.D. No, 90-16229. Smith. J., entend order (nIltinr pteli'llinary injunc- tion and defendanla appealed. The Superi- or Court, No. 01733 Plttaburrh 1990, Ola,. fWlk~ J" held that: (1) order conatituled a "Pl'eliminary injunction" even thourh bond ~nired 101' injunction to ro into effect had !lOt bHn pooled, and (2) order would be i:- PL 141 vacaled where required bond had not bHn pooled before appeal wu taken. Order v_led. [ I. Appeal and Enor "100(1) InJunction "148(1) Order rnnllnr plaintiff a preliminary injunction conalltuled a "preliminary In- junc:tion" and wu appealable .nn tbourh th. bond required for th. injunction to take .flect had not been pooled. Ruin App. Proc:., Rule 311(a)(4), 42 Pa.C,S,A.; Ruin CiY,Proc:., Rule 1631(b), 42 Pa.C.s,A. See publicatkm Words and Phruea ror othu )udIcIal COIlIlructions and definitions. Ii [ 2. InJunction "113(1) Order (nIlting preliminary injwlction but which did not become .Ifectin WIlli reqnired bond wu poated WOlIId be _led where bond had not bHn (lOlled before appeal wu taken. Rulea CiY.Proc:., Rule 1631(b), 42 Pa.C.s.A. 3. InJuncllon "'148(1), 113(1) Trial judr' (nIltinr preliminary in- junction abould fill tim. within which bond mlUlt be (lOlled by the injunc:tion-eeekln& plaintiff, and if no bond ia (lOlled by the date aet, the injunc:tion will be automallcal- Iy diaaolved and no appeal need be taken. Rulea CiY,Proc:., Rule 1631(b), 42 Pa.C.s.A, Louia C, Lonr, Plttaburrh, for appel- uta. TheocIore Kukunu, Plttaburrh. fOl' ap- pellee, Before McEWEN, OLSZEWSKI, and CERCONE, JJ. OLSZEWSKI, Jud(e. Thia ia an appea1 from an order rrantinc a ptetiminary injunction. Peter Kuirot, Liaa Kuiroa, and K.nneth Kuiroa, Vd/b/a Kopper K.ttle Fud(e hctory, and Jeffrey Kuiroa (col\ectjytly, the Kuiroa delendanla) were ordered to c:t_ Ullnr the Ittftt 'onnula, l'tc:ti~lI. IlH!thoda and te<hniquee 0' Goodiea Oldt Fuhion Fuq. Co, (Good- ita. and to ",'rain from IOlicitinr 01' COlI- 142 Pa. 597 ATLANTIC REPORTER, Zd SERIES tacting Goodies' customen. The Kuiros defendanta appeal, claiming that the pre- liminary injunction is defective because Goodies hu failed to post a bond u re- quired by Pa,R.Civ,P. 1531(b), Alternative- ly, the Kuiroa defendants argue that the covenant not to compete which is the foun- dation of the injunction is unenfolUable because it is unrestricted u to time and area, or it lacks consideration u it wu not executed ancillary to the inception of em- ployment. The Kuiroa defendanta aJao challenge the sufficiency of Goodiea' evi- dence of irreparable ham. In a Iut-ditch effort to partially vacate the injunction, the Kuiroa defendants claim that the injunction should only apply In Peter Kuiroa u he wu the only defendant employed by G0od- ies and, consequently, the only defendant to aign a covenant not to compete. Goodies requests that we quuh this ap- peal u interlocutory, The ....nce of Goodies' argument is that the injunction, by ita expl'l!88 terms, does not become ef, feedve until the bond has been posted. As Goodies has not posted the bond, the in- junction does not yet exist. Thus, Goodies argues that there is no fmal order before this Court. Having reviewed the argu' menta of the parties. we vacate the injunc- tion, as it has been granted without the posting of the bond required by P&.R.Civ.P. 1531(b)' The sub.Wlce of the onler at issue here provides as follows: AND NOW, to-wit, this 2nd day of November. 1990, the defendants are hereby enjoined from: I. U,ing the aecnt fonnula. reeeipta. methods, and techniques in the manuf~ turiD!: of fudge and relati'oI candy prod- uds; and 2, Soliciting or otherwise contactinc any of plaintiffa customen wh_ identi- t)' or buaiDeu relationahip with plaintiff became known to the defendants t.hrou&h any one of the defendants employment nlationahip with the plaiDtiff. This injunction to tske effect upon the plaintiff pootin. a bond in the sum of twenty UIouaand dollars ($20,000.00), sec. \eg. .t see, reg, It is undisputed that Goodiea has not POOl- ed the bond u required by the order, Initially, we examine Goodi..' argument that the failure to post the bond renden this order unappealable. We note that by ststute and rule, preliminary injunctiona, while interlocutory, are appealable u of right. See, Pa.R.A,P, 311(aX4), 42 Pa. C.S,A., implementing 42 Pa,C.s,A, f 5105(c). In recornition of these provi- slona, Goodi.. uiUea that the order in question is not, in and of itself, a pn\lml. nary injunction, because it provides that injunction will take effect upon postlng of the bond. While enjoying the semantical sophistry presented by thla argument, we cannot agree, Goodiea relies upon ~ ~, Boltz, 401 Pa. 365, 164 A.2d 663 (1960), and r..... .uzi Bevnage Co. ~, Local U..io.. uo, 408 P&. 380. 184 A.2d 243 (1962), u supporting ita argument that the order at issue is not appealable. We find both cues diatio- guishable. Goodies cites us to the follow- ing passage in ~e: , ., where, as here. the court does no more than make absolute a rule for a preliminary injunction and directs that auch injunction ahall issue, it is the carry. o.g out of the order by the issuance of the injunction that becomes appealable. (Appellee', brief at 10. Guoting Z.;gtfl/uM, ..pro at 371, 164 A.2d at 666), We believe the more relevant portiona ol the Zeigert- lOA. opinion are u lollows: [following argument on preliminary ob- je<:tions to the complaint) ... the court , .. entered the following order: ''T!Ie preliminary objectiona ...... dismisoed; the rule is made absolute. The preliminar1 injunction shall issu.... . . . . . ." I f , ~ . Ordinarii,. the d..,... of a eourt award- in. the injunction delinoatea and de~ the enjoining mandate. and, thua, CODI~ tutes the injunction whic:h is required 10 be &ec1IJ'Id by bond. ld. This Iancuace, whic:h pncedea the pu- ..".. quoted by Goodiea, doom. the &l'(U' ment that t.hia order is not a prelimiJl&t1 injunction. . GOODIES OLllE FASHION t'Ullla: v, KUlROS CIte.. '" .u.I .41 C........' '"" [II Rather than merely makinr abao- 622 A,2d 1129, 1131 (1987) (emphaaia add- . the rule for the preliminary objection, ed). Such relief mUlt be rranted even if tile order at Iuue here, aa quoted above, the injundion ia otherwiae proper, III. iJIarly enumerata which utivitiel are pro- S<< ouo, LoIVnIIl~ Co,,"IW v, Brmlllf', '1lIbiud and .tate~ that ..th~ ddendanta are 135 r.C:m~lth. 619, 630, 582 A.2d 79, 84 \ .....by ,'njoined. ThUI, It dehnratea and (1990); (hmlo v. r...co1fW l1fc., 308 PLSU' . .r.... II,. enjoininr rnandall' More im- per, r~;4, r~;7. 454 A,2d 1042, 1044 (1982); l pottanUy, no further onler of the trial RO",1fI""'i v, Foc"", 457 Pa. 4~2, 494, 327 eourt is ne<e.lII1)'. Goodlel nt."" not"" A,2d 36, 3M (1974); S..feO ProduclA, lru:. v. 11Im to the !rial court after po.ting the Kimck, :167 Pa, 516, 519, 80 A.2d 842, 844 bond and requeat that the langulge of the (1951), Theae cues, while inatructive, are order at iuue here be repealt'd in a aubae- not truly on point Here, we are not quent oro... Thia order is ..If.necuting presented with the failure of a trial court upon paotin, of the bond and COlllltitUta a to requ;..., that a plaintiff poot Lond; rath- pftliminary injunction. Therdu... it ia a~ er, we are faced with plaintifr. failure to pealable under PLR.A.P., Rule 311(a)(4).' comply with the trial court'a order that s-. Rou U1fij'omu, 11Ie. e. Lobe~ 408 PI. bond be pooted. 421, 424, 184 A.2d 261, 263 (1962) (diatin- A alirhtly different procedural defect ia cuilhing the onler dec:1ared unappealable presented in Mo",..14 e. UlIiled StnltllOrl:, in ZrignafW. from an onler which pur- en of Am.rico. 409 PI. 175, 185 A.2d 595 port.I to grant a preliminary injunction). (1962). There the trial court entered a We aIao fInd Ttrriui diatinruiahable, preliminary injunction effertive immed1 .... There our Supreme Court found that the Iy. postponing a union election schedu "'- trial court did not have juriadiction in the nine and one-half houn later and requiri r dispute due to the esclUlive jurisdiction of the posting of a bond within 48 houn, n the National Labor Relatiollll Board under vacating the injunction, our Supreme Court the Taft-Hartley Act of 1~7, Terrizzi, noted that the injunction waa effective im- ...pns at 383, 184 A.2d at 245, Abaent mediately without the protection of the jurisdiction, the trial court could not enter bond, and that the fIling of the bond could a valid onler. Our Supreme Court noted be delayed until after the election had been that the onler at issue alao dismiaaed the enjoined. III. at 177, 185 A.2d at 597. ~fendanta' preliminary objectiona; su~h Again, this is not dire<tIy on point heeauae III order ia appealable, Thua, any discus- the order at Iuue he", atates that the lion of the appealability of the injunctive injun~tion is not effeftive until the bond ia portion of that order ia dic/4. posted. The KuiIoa defendanta argue that a p"" Yet another factual acenario occurred in Iiminary injundion iaaued without !.he post. R_ UlIifomu, III,.,.. '!'heft the prelimi- in( of a bond ia a nullity, ''The foil..,. 01 nary injunction iaaued without a bond beine 1M Iri4/ COIIr( 10 ,..,..i,. tAt 1'01""11 of 0 required, The order was subsequently 601ld to leCure a preliminary injunction aa amended to require the postinr of a bond, ",!uired by Pa.R.Civ.P, 1531(b) is a fatal and an appeal was taken, After the fIline defect requirin( an appellate court to va- of the appea~ the plaintiff pooted the bond Cite the injunction." Soj4 v. Fudoryt'ille required by the amended order, In vacat.- SpclrUmtll ~ Cld, 361 Pa.Super. 473, 478, ing the injunction. our Supreme Court ltat. Pa. 143 ;f ;". oii In ./w proh.lnlc<l COIlduct. or .bidi.. "" lho Ifflft. '" lho onIet' withouJ tho protKIloII '" tho bond "ht<h ....... ........Iy. Tl>c pIainIiIl......w ...... oblaln ./w /wMlIt '" ./w ,,"hminary In, jum:,"", without poIil1,. . bon.!. I dtw rioIa, ...... uI.ho ""rtt '" "".ItCIv.P I'll(bl. Such. rourw '" ,onducI -W Ill... _ ....U,P )1 HaMel b, ""'aI... . t~ 01 ,,"limiftary In tutkhon ..hK h cuu-Id not: ... t~ by thl. Cuul1 1""'11 Writ .,U not du, I, Sound policy r_ aha ...... ....n.. lho poIition ~en b, Goodm. Were '<W 10 acCt'pI tM &rpmenl thai an onk1 IUCh as this " noc -.l.hI< unlll tho bond I. """ed. _ -W pqu dw dd"endanl subj<<1 to tis tcorm' tn aft UfUmabte plKIUon. Plat"tlff wtHolld br frff to ,.... .ho bond .t ...y "_, Im-.....ly bri..... lhf tnjUndlun intu cited Th"" dd~ ., prnrnlnJ wllh 1M l hmn of nUl"l . (ontt'mpt L-~ "~~M .-".., ~... ~ 144 Pa, ,.,. 597 ATI.ANTIC R}:PORTER, 2d SERIES ed "we know when the bond WI.' furnished and approved. but both events having oc. curred after the grant of the injunction and the appeallo this court therefrom, the fur. nishing of the bond did not correct the error of the court below," ld. at 425, 184 A.2d at 263, This, too, is not directly on point because the trial court erroneoully entered an injunction effective immediately without the requirement of a bond. In the case ...6 judice, there was no error which the trial court corrected by amending the order. (2) Thua, we are faced with what al" pears lo be a unique factual scenario in an area often vilited by the courts of this Commonwealth, Of what effect is an or- der, purporting lo be a p...liminary injunc- tion, which by its own tenna doea not be- come effective until the required bond is poatecl, when the plaintiff fails lo poat the required bond before an appeal ia taken? We hold today that the poliq expresled in the abovMited cues as well as in Pa. R.Civ.P. 1531(b) requires that luch an or. der be vacated. It mUlt be remembered that a prelimi. nary injunction is a moat e.traordinary form of relief which is lo be granted only in the moat compelling cas.., Soja, ...pro at 475, 522 A,2d at 1129. The requirement of a bond exists for the lpeciflc purpose of protecting a defendant by lupplying a fund lo pay damages if this relief is granted erroneoully, ChrUto, ...pro at 567, 454 A.2d at 1044, A unifying theme running throughout the Casel cited above is conrern that the defendant subject lo the injunction has this prou.,tion. As noted above, this type of injunction. effective wh.n the bond ia poated but not lpecifying a date by which thia mUl;t occur, pIacea the defendant in a serious quandary, Uncertain as lo when the plaintiff will poat the bond and so make the ..If....""uting order effeeth'e, a defendant mUlt abide by the terml of the injunction without the prot<<tion of the bond or enpce in the prohibited activitiea at the nail of a contempt citation. [I) Moreover, a defendant aubject lo IUch an order is caucbt bet_n a pr0ce- dural Scylla and Charybdis, An appeal mUlt be filed within 30 daYI of the entry of the order appealed from. Pa.R.A.P, 903(1), 42 Pa,C,S.A, In civil casel, the date of the entry of an order is the date the docket is noted that notice of the order has been giv.n lo the partiel. Pa.R,A.P, 100(0), 42 Pa.C,S,A, Were we lo adopt the construe. tion urged by Goodiel, a plaintiff could wait thirty..,ne daya lo poat the required bond. ThUI, any timely appeal filed by the d.fendant would be quaahed as interlocu. lory, and any appeal filed after the poating of the bond could be quashed as untimely, This would, in effect, create a lpeciel of preliminary injunction ....ntially unappeal. able lo this Court. We decline lo authorize thia unwise practice. The...fore, we hold that the trial judge ahould aUlomatically fIX a time within which bond muat be POSled by the injunotion'leekine plaintiff. .u._ . boad is poated by the date set, the injunc- t.ioD will be aUlomaticalb' diaaoIved, aaG no . 'PpeaI need be taken by the defendan~ We now apply the rule lo the facta of this case. At argument, Goodies claimed that financial difflCultiea led lo the failure lo poat a bond, The order granting tho injunction was entered November 2, 1990, At no time in the intervening nine and one- half months has Goodie. filed the bond. Goodies' explanation of the failure actually provides weight lo the Kuiros ddendanta' argument If Goodies is without tho wh....withal lo poat the bond, they an unlikely lo poasess sufficient reaourcos for any damages awarded if defendanta <OlIl- ply with the order and the injunction is later determined lo have iaaued in e.,..,r, It is precisely this situation which the Rulet mean lo prevent by requiring the po.tin( of a bond. Thua, we fmd that Goodies bu not poated the bond according lo the trio! eovrt's ord.r and vacate the order st iu.... Aceordingly, we need not .npre an obi_ diel4 as lo the other iaaues ......n~ by the Kuirol def.ndanta' appeal, Order vaca~ Cue ...manded fur f1ll" titer proct'edings. Juriadiotion rtlitl- quiahed. c@-~J j j I ..... ....,'............-. ... __ ~or~~~~/_ ...."../.,.~ .. .. ;..',...... 'c.... <........' ..... ...__.._-,~<.:_~~,";:,;;. ;,;(:_, - y:C .. U:W~ICIS .' .... . s.\ID1S;G1)lDO.8Ilul'f &~O ,~~. ~,.JlIOII~ 2\01)lAlPTmar . . W' ~ ",'\iot,CAIoII' 1l\U.. '" 1'10\1 :;. .....('Im~ flIClMB('II'I)~ ..''''''''''........r--..--.-...''....... I ~ .. .. PENN PEST, INC., A PENNSYLVANIA CORPORATION, Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA v. No. 97-1477 Equity Term FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC., A PENNSYLVANIA CORPORATION, Defendants r": ,() .~ _I ~',l . 1 - ,:rI '" , . "J ., -.I ..., ) , 0 ~ ' ; ,,:':.:.1 n ~., ;(n , i r- '<-a &" .....: CIVIL ACTION - EQUITY"' -.. , ' . . IIOTICE OP' APPEAL Notice is hereby given that Frank Deitr.h, individually, ... Frank DeitCh, trading as Deitch Brothers Pest Control and Penn ~ Pest of Carlisle, Inc., Defendants in the above-named action hereby appeal to the Superior Court of Pennsylvania from the Orders entered in this matter on the 25th day of April, 1997 and the 9th day of May, 1997. These Orders have been entered on the docket as evidence by the attached copy of the docket entry. Date: f r ). 7. ., 7 Respectively submitted, SAlOIS, GUIDO SHUFP" MASLAND co D. Hoor., Isquire Supreme Ct. 1.0. I 55694 26 Weat High Stre.t Carlial., PA 17013 (717) 243-6222 Attorney for Defendant. SAlOIS, GUIDO, SH\1fT a MASLAND 2tIw.ltiPS- Carb&Ie.PA ,;' -- . CBRTIFlCATE OF SBRVICE On this .-z. -, -h.. day of I'\.... Co., , 1997, I, Scott o. Esquire, hereby certify that I served a true and correct copy of the foregoing Notice of Appeal upon counsel for all parties of record via facsimile and United States Mail, postage prepaid, addressed as follows: A. Mark Winter, Esquire 310 W. Chocolate Avenue P.O. Box 412 Hershey, PA 17033 SAlOIS, GUIDO, SHUFF & MASLANO By' /~o -,:?? . .~ <' Scott D. Moore, Esquire PYS510 cumber1~irog~;~ i~~~~~~otary's O;;4ce Page 1991-01~77 PENN PEST INC (Vb) DEITCH FRANK ET AL Reference No..: Filed........: ,3/21/1997 Case TvDe.....: COMPLAINT - EQUITY Time.........: 10:48 Judgmen~......: .00 Execution Date 0/00/0000 Judge Assigned: BAYLEY EDGAR B Sat/Dis/Gntd.. 0/00/0000 Jury Trial. . . . Hi~afler Court 1 Hi her Court 2 ...**......*********..***....**....**.......***...**..* **.******.****.*....***. General Index Attorney Info PENN PEST INC PLAINTIFF WINTER A MARK 4601 LOCUST LANE HARRISBURG PA 17109 DEITCH FRANK 433 PONDEROSA ROAD CARLISLE PA 17013 DEITCH SAMUEL E 433 PONDEROSA ROAD CARLISLE PA 17013 DEITCH BROTHERS PEST CONTROL 433 PONDEROSA ROAD CARLISLE PA 17013 PENN PEST OF CARLISLE INC 433 PONDEROSA ROAD CARLISLE PA 17013 1 DEFENDANT DEFENDANT DEFENDANT DEFENDANT .**.***...**.*****........***..****.***..**..*****.......*********************** * Date Entries * ***.***************.*******...**..***..***************.***....*******...**.***.. 03/21/97 03/21/97 03/26/97 COMPLAINT - EQUITY MOTION FOR PRELIMINARY INJUNCTION SHERIFF'S RETURN FILED Litigant.: DEITCH FRANK SERVED : 3/25/97 Costs....: S20.00 Pd By: A. MARK WINTERS 03/26/1997 03/26/97 SHERIFF'S RETURN FILED Litigant.: DEITCH SAMUEL E SERVED : 3/25/97 Costs....: Sll.72 Pd By: A. MARK WINTER 03'26/1997 03/21/97 ORDER TO APPEAR AT PRELIMINARY HEARING - 0 TED 3/21/97 - HEARING 4/11/97 8:45 AM CR 2 - BY EDGAR B BAYLEY J - COPIES MAILED AND PERSONALLY GIVEN 3/21/97 04/10/97 ANSWER WITH NEW MATTER AND COUNTERCLAIM OF FRANK DEITCH INDIVIDUAL- LY, DEITCH BROTHERS PEST CONTROL AND PENN PEST OF CARLISLE, INC., TO PLAINTIFF'S COMPLAINT 04/16/97 ORDER OF COURT 4/11/97 PENN PEST INC -WITHDRAWING THEIR PETITION FOR PRELIMINARY INJUNCTION AGAINST DEFT SAMUEL DEITCH- IS WITHDRAWN AND DISMISSED EDGAR B BAYLEY JUDGE COPIES MAILED 4/16/97 TRANSCRIPT LODGED IN RE TESTIMONY OF THOMAS DEITCH TRANSCRIPT FILED IN RE TESTIMONY OF THOMAS DEITCH ON 4/11/97 APPROVED AND FILED EDGAR B BAYLEY JUDGE PRELIMINARY INJUNCTION 4/25/97 ORDERED III F DEITCH ENJOINED FOR 2 YEARS - VIOLATING PROV BETWEEN PENN PEST' DEITCH BROS. PEST CONTROL 121 PRELIMINARY INJUNCTION SHALL INCLUDE F DEITCH WORKING CURRENT CAPACITY AT DEITCH PEST CONTROL (3) PLFF FILING A BOND WITHIN TEN DAYS EDGAR B BAYLEY JUDGE COPIES MAILED 4/28/97 85/09/97 PETITION TO EXTEND DATE TO POST BOND BY PENN PEST INC 5/09/97 ORDER 5/09/97 HEREBY ORDERED AND DECREED THAT CUMBERLAND COUNTY PORTHONOTARY'S OFFICE SHALL ACCEPT THE $10~000.00 PERFORMANCE BOND FROM THE PETITIONER IN FULL COMPLIANCE WIT" TERMS AND CONDITIONS OF COURT'S DECISION DATED 4/25/97 EDGAR B BAYLEY JUDGE 5/09/97 NOTICE MAILED . PERSONAL SERVICE ON ATTY 05/12/97 INJUNCTION BOND FILED - PENN PREST INC - WASHINGTON INT INS CO 05/12/97 PETITION TO VACATE MAY 9 1997 ORDER 05/13/97 ORDER OF COURT 5/13/97 6RDERED THAT PETITION OF DEFENDANTS TO VACATE COURT'S ORDER OF 5/09/97 IS DENIED EDGAR B BAYLEY JUDGE COPIES MAILED 5/13/97 ......***........................**............................................. * Escrow Information * 04/18/97 04/25/97 04/25/97 PYSSlO 199'7-0l~77 PENN Cumberl~ County Prothonotary's , "11 Case Inquiry PEST INC (V~, DEITCH FRANK ET AL oflti4ce Page 2 Reference No..: Filed........: Case Type.....: COMPLAINT - EQUITY Time.........: Judgment. . . . . . : .00 Execution Date Judge Assigned: BAYLEY EDGAR B Sat/Dis/Gntd.. Jury TriaL.. . Hilaher Court 1 Hi her Court 2 * Fees , Debits Bea BollI Pvmts/Ad1 nd BollI * ..***...************************f.*.*****,.*****'*********************...******* 3/2l/~1997 0:48 0/00 0000 0/00/0000 35.00 35.00 .00 5:a8 5:~8 :88 5.00 5.00 .00 ------------------------ ------------ 45.50 45.50 .00 .*......***.....***..***.....**......**...***..........***********...*********** * End of Case Information * ***..******.*****..*.**.......**....**....**........***.***********.*...******** COMPLAINT TAX ON CMPLT SETTLEMENT JCP FEE 1f"~;" ~- -, 1"'"\ -. n (- ..:';;, ~ ~ - ,;:'.. , ~ .:') .,., ~r' . , . "-J ..... ~ /1 ., . ..J .'-1.. H.J ::;t }... . ~~, ~JJ.' -: r..) " :.- ,., ..) .~ ~ ~ .. <>> .. ~ \; r w t' ~ 06/18/97 1301 .. SUPERIOR COURT OF PENNSYLVANIA OFFICIAL DOCKET DOCKET # 00543HBG97 FULL CAPTION 001E PENN PEST, INC, A PENNSYLVANIA CORPORATION V FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS FRANK DEITCH & SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH & SAMUEL DEITCH TRADING AS PENN PEST OF CARLISLE, INC, A PENNSYLVANIA CORPORATION 002T APPEAL OF: FRANK DEITCH, INDIVIDUALLY, FRANK DEITCH, TRADING AS DEITCH BROTHERS PEST CONTROL & PENN PEST OF CARLISLE, INC COUNSEL TITLE FOR MAIL 55694 SCOTT D MOORE 002T Y 26 WEST HIGH STREET POBOX 560 CARLISLE. PA 17013 717-243-6222 23178 A MARK WINTER 001E Y 310 W CHOCOLATE AVE POBOX 412 HERSHEY. PA 17033 717-533-4868 CONSOLIDATED DOCKET NUMBER BACKGROUND DATA TRIAL COURT RECORDS CATEGORY: COURT NAME: COUNTY : JUDICIAL DISTRICT: CASE TYPE/CHARGE: TRIAL COURT CHARGES: JUDGE(S) : DISPOSITION TYPE: DISPOSITION DATE: APPEAL FILE DATE: DISPOSITION ENTERED: TRIAL CRT DOCKET NO. : OFFENSE TRACKING NO.: STATUS INFORMATION 07/02/97 DOCKETING STATEMENT DUE 07/06/97 LOWER COURT RECORD DUE DOCKET ENTRIES 06/18/97 NOTICE OF APPEAL cv CIVIL CUMBERLAND 09 EQUITY BAYLEY. E ORDER ENTERED 05/09/97 OS/27/97 97-1477 FOR oon I "'*' ~/J '1/17 .. PENN PEST, INC., A PENNSYLVANIA CORPORATION, APPEU.EE V, FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS DEITCH BROTHERS PEST CONTROL; FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARUSLE, INC" A PENNSYLVANIA CORPORATION, APPELlANTS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA . : 97-14n EQUITY TERM ~RDER OF COUBI AND NOW, this 23rd day of June, 1997, having received notice of an appeet In the within case from the SUPerior Court this date, and having never been Provided prior notice by appeilant's counsei or having been served with a notice of the appea/, IT IS ORDERED that COUnsel for appellant shall, not later than July 7, 1997, file With the Prothonotary and forward a copy to this court a statement of matters complalned of on appeal and a brief In SUPPOrt of that statement CoUnsel for Appellee shaU, within ten (10) days thereafter, file a response brief in chambers. By the Edgar B. J, ,It . i I ~ t_ ..' ~"';'';.'..'>'' ' . ,. . -.. ~ _0 .... -" I::; f .. .... N ..)..-r.: I}"'; (1 :0: 00" """ .~ .... :"'jo:~ ~ o~,. o_ r- :;. ~.:. I _'7. ~.~ .,. " tf~! . ,t... -" 1...;...... . F O') ~f~U- ~ .." \5 ~ :) U I!l' If~~ fEE . ee " lO! J.i! II ! - ~un i If~l... . a .3.1 .. ~. . . . f,+;~' . . "'"'" .... PENN PEST, INC. a Pennsylvania Corporation Plaintiff IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY v. . . FRANK DEITCH and SAMUEL DEITCH: trading as DEITCH BROTHERS PEST CONTROL, and FRANK DEITCH and SAMUEL DEITCH: trading as PENN PEST OF CARLISLE, INC., a Pennsylvania corporation, Defendant NO. 97-1477 CIVIL TERM I t f CIVIL ACTION - EQUITY , S'l'A'l'BMEII'l' OF MATTERS COMPLAINED OF O. APPEAL AND NOW, comes the Defendant Frank Deitch, individually and trading and doing business as Deitch Brothers Pest Control and Penn Pest of Carlisle, Inc. and states, pursuant to Pennsylvania Rule of Appellate Procedure 1925(b) as follows: 1. Where a restrictive non-compete clause in a license and consulting agreement does not prohibit the defendant from working c:-: as an employee for a competing business, did the trial court err by failing to strictly construe the restrictive covenant and enjoining defendant from working as a employee for his son's sole proprietorship? 2. Did the trial court err by permitting the plaintiff to post bond after the time set by the original order of court, where the injunction dissolved when the bond was not timely posted? Date: 7- 7- &'7 Respectively submitted, SAJDIS, GUIDO, SHUfF " MASLAND l6W.Iti.h_ Cartislt. "" F , MASLAND ]) ~ 'I I cott D. Moore, Esquire Supreme Ct. 1.0. , 55694 26 West High Street Carlisle, PA 17013 (717) 243-6222 Attorney for Plaintiff .. . PENN PEST, INC., . IN THE COURT OF COMMON PLEAS OF . A PENNSYLVANIA CORPORATION, . CUMBERLAND COUNTY, PENNSYLVANIA . plaintiff . . . . V. . . . . FRANJ( DEITCH AND SAMUEL . . DEITCH AS INDIVIDUALS; . . . . FRANJ( DEITCH AND SAMUEL . CIVIL ACTION - EQUITY . DEITCH TRADING AS DEITCH . . BROTHERS PEST CONTROL; : FRANJ( DEITCH AND SAMUEL . . DEITCH TRADING AS PENN PEST . . OF CARLISLE, INC., A . . PENNSYLVANIA CORPORATION, . . Defendants . NO. 97-1477 EQUITY TERM . IN RE: TRANSCRIPT OF PROCEEDINGS PRELIMINARY INJUNCTION proceedings held before the HONORABLE EDGAR B. BAYLEY, J., CUmberland County courthouse, Carlisle, Pennsylvania, on April 11, 1997, comaencing at 8;50 a... in Courtroo. Nuaber Two. APPEARANCES: A. MARX WINTER, Esquire For the Plaintiff SCOTT B. MOORE, hquire For Defendant Frank Deitch lIb . . INDEX TO WITNESSES FOR THE PLAINTIFF DIRECT CROSS 1. Patrick Moran 4 20 FOR DEPENDANT FRANK DEITCH 1. Prank James Deitch 30 47 2. Thomas Lawrence Deitch 57 59 FOR DEFENDANT SAMUEL DEITCH 1. Samuel Eugene Deitch By the Court 62 2 It? ~ fIiI!i\ 1 April 11, 1997, 8:50 a.m. 2 Carlisle, Pennsylvania 3 4 (Whereupon, the following proceedings 5 were held:) 6 (Whereupon, Plaintiff's Exhibit No. 1 7 was marked previous to hearing.) 8 THE COURT: What are the issues here? Off 9 the record. 10 (Whereupon, opening statements were held 11 off the record.) 12 MR. WINTER: Your Honor, I would like to call 13 Mr. Patrick Moran to the witness stand, please. 14 Whereupon, 15 PATRICK MORAN, 16 having been duly sworn, testified as follows: 17 DIRECT EXAMINATION 18 BY MR. WINTER: 19 Q Would you please state your name and your 20 address for the record. 21 A My name is Patrick Moran, H-o-r-a-n. I 22 rea ide at 4909 Hilltop Road, HarriSburg, Pennsylvania. 23 Q Mr. Moran, are you a principal in a 24 corporation called Penn Pest, Incorporated? 25 A Yes, I am. I am the president of the 4 ""'" """ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 corporation. a And very briefly, where is that corporation located? A The Penn Pest corporation is located at 4601 Locust Lane, Harrisburg, Pennsylvania. a What is the nature of that bu.iness? A We are a termite and pest control business. a How long has the corporation been in existence? A I believe the corporation has been in business for approximately nine years. Q And how long have you been the president and shareholder of the corporation? A For the same amount of time. a Are you personally familiar with the defendants, Frank Deitch and his brother, Samuel Deitch? A Yes, I am. a And approximately how long have you known Frank Deitch? A Approximately since 1992. a How did you firat co.e to know Mr. Deitch? A I calle to knov Mr. Deitch vhen h. va. a cheaical representative -- excuse .., a distributor representative for the pest control industry. He va. employed by a company called Van Waters and Rogar.. 5 ~ '" 1 Q At some point and time did Mr. Deitch come to 2 work for you as an employee? 3 A Yes, he did. When he left Van Waters and 4 Rogers, he cam. to work for us, and I believe that was in 5 1993, Karch of 1993. 6 Q And as an employee, very briefly, what type 7 of duties did he perform for your company? 8 A The duties he performed was basic termite and 9 pest control service, technician duties. 10 Q And what was his annual compensation for 11 those duties? 12 A I believe it wa. $18,000.00 a year. 13 Q And was he a full-time employee earning that 14 amount of money? 15 A Yes, sir, he was. 16 Q At some point while Mr. Frank Deitch was 17 still your employee, did he come to you and indicate that he 18 wanted to leave his employment with you? 19 A Yes, he did. 20 Q And did he indicate why he wanted to leave? 21 A Yes, he did. 22 Q And what was his reason? 23 A He stated that he wanted to g.t back into 24 peat control because he did own a pest control bu.1n... 1n 25 California, and that it was in hi. blood and h. r.ally hed 6 ,.... "... 1 the desire and the need to return to owning his own 2 business. 3 Q At that time did you suggest to Hr. Deitch 4 that there might be some type of alternative arrangement 5 that the two of you could enter into? 6 A Yes, I did. Prior to Hr. Deitch starting our 7 employment, I knew through our conversation that he did own 8 a pest control business in California, and I stated to him 9 that I did not want to bring him on as an employee if he 10 wanted to own a business. 11 But over that period of time, Hr. Deitch and 12 I developed a close friendship, and I liked the way he 13 conducted himself in the business manner. So I pursued the 14 possibility of us engaging in business in some sort of 15 partnership, license, branch manager relationship in the 16 town of Carlisle. 17 Q Now, at that time, and we're talking the 18 period maybe in 1993 or so, did that come to fruition 19 between the two of you? 20 A No, it did not. Mr. Deitch thought about it 21 and decided that he would like to operate independently. 22 Q And did he, in fact, leave your employment? 23 A Yes, h. did. 24 Q And at that point and time was th.r. any 25 problem with him doing that, a. far as you were concerned? 7 {2-2- ;""\ ,..... A Q Mr. Deitch? A Q Mr. D.itch? A Q Did you make business referrals to him? A Yes, we did. Q Did you send him specific jobs? A Yes, we did. Q Did you make him have -- excuse me. Did you 8 12J ~ ~ 1 termite job .cheduled on North sixth street in Harrisburg. 2 And I .aid to Mr. Deitch, you know, why don't you take this 3 job, you know. Go ahead and just take it tor the revenue, 4 it's Christmas, and, you know, here it is. 5 Q Did Mr. Deitch appreciate that fact? 6 A He's always appreciated our working 7 relation.hip. 8 Q Did he indicate to you at that time that his 9 revenue. were rather slow or low? 10 A Slow. 11 Q As a result of this December 1994 meeting, 12 did you renew again the discussions about Mr. Deitch 13 becoming a licensee or a tranchisee of your business? 14 A Yes, we did. We engaged in conversation 15 where we both acknowledged that a good portion of his Deitch 16 Brothers Pest Control business was referrals or indirect 17 helping with our accounts, and we suggested that perhaps we 18 would both benefit from a long-term relationship. 19 Q Did you then begin a .erie. of ..etings among 20 your.elf a'~ ~r. Frank Deitch and hi. broth.r, Sa.uel 21 Deitch, and their spouses? 22 A Ye., we did. 23 Q I want to direct your attention to a .pecific 24 ..eting. Was there a dinner .e.ting wh.n all of you were 25 pre..nt and discussion. were held regarding thi. proposed 9 ~ ~ 1 new arranqement? 2 A Yes, there was. 3 Q And was the queation asked that it the 4 Deitches entered into this aqreement with you and then 5 subsequently chanqed their minds that they would be able to 6 qo back to doinq business as Deitch Brothers? Was that 7 question put to you? 8 A Yes, it was. 9 Q And what was your response to that? 10 A My response was, if you have any hesitations 11 whatsoever with qoinq back or stayinq in your own business, 12 please let's not qet into this aqreement. We are lookinq 13 for a lonq-term relationship that would benefit both 14 parties. 15 If you want to stay Deitch Brothers, stay 16 Deitch Brothers. We're qood friends. I don't care. If you 17 would like to enter into a license aqreement with me, let's 18 do it for the lonq haul and let's all qet on the common 19 qround and work from that basis. At that dinner discussion 20 we left it at that, and they went home and thouqht about it. 21 Q And was this .eetinq or this discussion held 22 prior to the execution of the license aqreement? 23 A Yes, it was. 24 Q In your mind at the time of that .eetinq, was 25 there any doubt as to what your intentions were if the 10 ~ "" relationship were formed with the Deitches? A No, there was not. Q And so you did not intend that they would be able to enter into the agreement and then leave the agreement, is that correct? A No. Based on our dinner conversation, it was 1 2 3 4 5 6 7 quite clear of my intent. They posed the question. I 8 suggested they go home and think about it because it did not 9 matter. We were not engaged in a formal business 10 relationship at that time. We were engaged in a common 11 business relationship where we would work together as 12 separate entities. 13 Q Did you ultimately present to the Deitch 14 Brothers for their review and consideration a document 15 entitled license and consulting agreement? 16 A Yes, I did. 17 Q And is that the agreement that is dated March 18 2, 1995? 19 A Yes, it is. 20 MR. WINTER: Your Honor, that's attached and 21 incorporated into the plaintiff's complaint in this action. 22 THE COURT: Okay. 23 BY MR. WINTER: 24 Q Mr. Moran, are you pereonally fa.iliar with 25 that document? 11 /2" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1"""\ ,....., A Yes, sir, I am. HR. WINTER: May I approach the witness, Your Honor? THE COURT: Sure. BY MR. WINTER: Q Mr. Moran, I'm showing you the exhibit that is attached to the plaintiff's equity complaint entitled License and Consulting Agreement. It's the document dated March 2, 1995. I'm going to ask you first to look at page 12 of the document. Do you recognize your signature on there? A Yes, sir, I do. Q To the left is the signature of a Woman named Margaret A. Hazlett. Do you know who Margaret A. Hazlett is? A corporation. Q And is she present in the courtroom today? A Yes, sir, she is. Q For the record, is she seated wearing the yellow jacket behind counsel table? A Yes, sir, .he i.. Q Below your .ignature there are a .erie. of eignatur.. or Frank Deitch and Samuel Deitch. Do you recognize tho.e eignature.? Yes, sir, she is the vice president of our 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 """ ,... A Yes, sir, I do. Q Were those also witne..ed by Marqaret Hazlett? A Yes, sir, they w.re. Q I would like to show you paqe nine of the document, Roman numeral paraqraph XV, covenant not to compete. Have you read and are you familiar with thi. document? A Yes, sir, I am. Q Excuse me, and this particular sub-paraqraph? A Yes, sir, I am. Q What is your understandinq of the meaninq of the covenant not to compete? MR. MOORE: Objection, Your Honor, the document should speak for itself. THE COURT: He can tell me what he thinks it is. I aqree it speaks for itself. THE WITNESS: My understandinq was, as a business person, I wanted to protect .y inter.st that I'. qoinq to brinq somebody intimately into my orqaniaation, and by doinq so I wanted to share my information not only to make the. successful but me successful, and we share that and have such an open relationship. I want to mak. sure that the individual or individuals who enqaq. in busin.ss with .. don't take .Y 13 1"1\ 1""\ 1 ideas, my business practices, my way of conducting business 2 and leave and start their own business. 3 So we mutually agreed not only on that item 4 but other items. If there is something that you don't want 5 to sign or agree, let's strike it before we get to the 6 agreement. And that was one of those points that we 7 understood was fair. S It's very limited. It was limited for two 9 years, that should they leave they would not work in the 10 pest control and termite control industry, and it was also 11 limited in scope that would not prohibit them from working 12 outside a normal range. We chose 50 miles as a normal, 13 acceptable range. 14 BY MR. WINTER: 15 Q And that would be 50 miles -- a 50 mile 16 radius from the location of the principal place of business 17 in CUmberland County, is that correct? 18 A That is correct, sir. 19 Q Now, Mr. Moran, after you and the Deitches 20 entered into this written agreement in March of 1995, did 21 you begin then to assist them in setting up their bu.ine..? 22 A Yes, we did. 23 Q And could you very briefly tell the COurt the 24 type. of thing. that you did that were of a..istance to the 25 Deitche.? 14 /1-'1 ~ ~ 1 A What we immediately did was subcontract all 2 of our West Shore accounts for them to produce immediate 3 revenue. West Shore accounts would have been accounts on 4 the West Shore of Harrisburg. 5 We also continued to engage in our previous 6 practice of Harrisburg Housing Authorities, subcontracting a 7 specific section of that contract. In addition, we 8 broadened our range of referrals; for example, termite work. 9 I found it appropriate to assist them by giving them termite 10 work and pest control work. 11 Q In addition in your business, do you do 12 inspections of homes for real estate transactions? 13 A Yes, we do. We have a very large base of 14 realtors in the greater Harrisburg area, and we assisted the 15 Deitch, now Penn Pest of Carlisle, with opening up doors to 16 those contacts; for example, Jack Gaughen, and also have 17 offices in Carlisle, Century 21, Brenneman and so on and so 18 forth. 19 Q During the time that you were under this 20 agreement with the Deitches, did your particular company, 21 Penn Pest, Inc., come into the Carlisle/cumberland County 22 area and compete directly with them in the business place? 23 A No, sir, we did not. 24 Q Did you continue to make business referrals 25 to th..? 15 ~o """ '""" 1 A Yes, sir, we did. 2 Q As part of your agreement with the Deitch 3 Brothers, were they required to submit financial information 4 back to you? 5 A Yes. 6 Q And so were you aware of the amount of 7 revenue or the amount of calls that they were receiving on a 8 monthly or an annual basis? 9 A I was aware based on what they disclosed to 10 us. 11 Q To the best of your knowledge, what type of 12 income were they generating during the time that they were 13 in this agreement with your company? 14 A To the best of my knowledge, within the first 15 year or the last -- yes, excuse me, the first year they did 16 over $70,000.00 in business, in excess of close to 80,000. 17 Q When Mr. Frank Deitch was your employee, he 18 was working a full-time job for you and earning $18,000.00 a 19 year, is that correct? 20 A Yes, it is correct. 21 Q When did you first become aware that Mr. 22 Frank Deitch wanted to sever his business relationship with 23 you? 24 A When we received a letter froa the law f.lra 25 of Guido, his attorney. 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~ ~ o And do you know approximately when in time that letter va. received? A I believe it va. in January of '97. o Do you have per.onal knowledge today that eith.r Frank Deitch or hi. brother, Samuel, or the two of them acting together are engaged in the p..t control bu.ine.. in the CUaberland County/Carli.le area? A I have per.onal knowledge that Frank Deitch i. engaged in the pe.t control bu. in.... MR. WINTER: Again, Your Honor, if I may approach the witn..e, plea.e? THE COURT: You can at anytime. MR. WINTER: Thank you. BY MR. WINTER: o Mr. Deitch, I'm going to show you a document that'. been .arked Plaintiff'. Exhibit No.1. It's four pag.. .tapled together. The fir.t page i. a fax cover page, and then there i. three docu.ent. that follow it. Could you take a .inute and tell.. if you are fa.iliar with tho.. four page.? A o of bu.ine..? Y.., I a.. Did you actually rec.ive tho.. at your plac. A Ye., we did. o And did you receive thoee on March the 17th 17 """" ~ 1 ot 1997? 2 A I believe that to be correct. 3 Q Do these appear to be pages that were sent by 4 a print company here in Carlisle? 5 A Yes, they do. 6 Q And do they indicate a letterhead design tor 7 Deitch Pest Control? 8 A Yes. They are the forms that we were using 9 for termite work, and they just took our name off the top 10 and put their logo on for Deitch Pest Control. 11 Q Does it indicate phone numbers in both 12 Carlisle and Harrisburg for the Deitch Brothers? 13 A Yes, it does. 14 Q Does it indicate that they are servicing both 15 the East and West Shores? 16 A Yes, it does. 17 Q Does the document also contain a warranty 18 agreement on the letterhead ot Deitch Pest control? 19 A Yes, it does. 20 Q And does it contain information de.cribing 21 the services that Deitch Pest Control would offer to a 22 customer? 23 A Ye., it does. 24 Q Mr. Moran, if you know, i. there an active 25 bu.iness available in cuaberland County in the peat control 18 1'""\ ~ 1 business in the indu.try? 2 A By active, .ir? 3 Q W.II, what I mean is, are there potentially a 4 good number of cu.tomers and a good customer base that you 5 would have acc... to th.m? 6 A Oh, ab.olut.ly, and we have demonstrated that 7 by when Deitch Brother. cam. on they were doing this level 8 of bu.in.... Th.y were up to over $76,000.00 previously, 9 and this y.ar w. anticipate them going over a hundred 10 thou.and dollars. And Mr. Deitch admitted that over and 11 ov.r h. could not have done that without our help. 12 Q In your opinion, if Mr. Deitch is allowed to 13 s.v.r hi. agr....nt with you and enter into direct 14 co.petition, would your company suffer economic harm? 15 A Ab.olutely. 16 Q And would that harm be ongoing during the 17 ti.. that Mr. D.itch would be competing directly against 18 your bu.in..a? 19 A Ab.olutely without a doubt. 20 MR. WINTER: Your Honor, I have no further 21 qu.stion. of the witn.ss at this ti... 22 THE COURT: cross. 23 MR. MOORE: Thank you, Your Honor. 24 25 19 ~ ,.. 1 CROSS EXAMINATION 2 BY MR. HOORE: 3 Q Hr. Horan, you are currently operatinq in the 4 Carlisle area as Penn Pest ot Carlisle, Inc., are you not? 5 A I believe, sir, we are operatinq in Carlisle 6 as Penn Pest, Inc. 7 Q You have the phone number tor Penn Pest of 8 Carlisle, Inc., rinqinq into Penn Pest, Inc., isn't that 9 correct? 10 A Yes, sir. Your law tirm advised Hr. Deitch 11 to siqn that number over to us. 12 Q sir, isn't it true that there was discussion 13 of resolvinq this dispute, and as a result there was a 14 siqninq over ot that phone number? 15 MR. WINTER: Your Honor, I would object. Any 16 discussion, settlement discussions -- 17 THE COURT: Sustained. He just said the 18 phone number was siqned over. 19 BY MR. HOORE: 20 Q And, in tact, you are currently payi~ for 21 the yellow paqe ad tor Penn Pest of Carlisl., Inc., is that 22 riqht? 23 AYe.. 24 Q And, in fact, you are holdi~ yours.lf out .. 25 the owner and operator of Penn Peat of carUsI., Inc., are 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you not? """ "'" A I believe it's Penn Pest, Inc., sir. (Whereupon, Defendant's Exhibit No. 1 was marked for identification.) BY MR. MOORE: Q I'm going to show you a document that is marked Defendant's Exhibit No. 1 and ask if you can identify that document? A Yes, I can. Q Can you tell me what that is? A Yes, that was a solicitation to realtors in the Carlisle area. And what's the top of the heading of that Q letter? A Q A Q A verbatim? Q A Penn Pest of Carlisle, Inc. And who does the letter say that it's trom? It is from us. What does it read, sir? It is asking -- do you want me to read it in No. What does it say who this is tro.? In this instance, we are repres.nting our..lves as Penn Pest of Carlisle, Inc., to realtor. in the Carlisle area. Q And it .ays fro. Penn Pest of Carli.le, Inc., 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 :u 23 24 25 ,...... """ Patrick Moran, is that right? A Yes, it does. (Whereupon, Defendant's Exhibit No. 2 was marked for identification.) BY MR. MOORE: Q I'm going to show you two items. One is a letter, and the other is the exhibit that we will use to evidence that letter which is marked as Defendant's Exhibit No.2. Can you tell the Court what that is? A Looks like a letter from the Central Penn Business Journal. Q And who is it addressed to? A The address on the letter is Patrick Moran, owner/manager of Penn Pest of Carlisle, 433 Ponderosa Road, Carliele, Pennsylvania. Q Did you contact Central Penn Bueine.. Journal and tell them that you were now the owner/manager of Penn Peet of Carlisle? A I would not have, and if I would have, I would not have given them Pondero.a Road. I've never conducted buaine.. there, and I'm not an owner or unaqer. so, no, that information would not have coae froa .., air. Q Did you contact Central Penn lu.lneaa Journal? A No, eir, I did not. 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 """" ,.... Q Did anybody in your organization contact Penn Pest? A Not to my knowledge, sir. Q Did you ever purchase Penn Pest of Carlisle, Inc.? A I own the licensing right to Penn Pest of Carlisle, Inc., sir. Q I'm sorry? A I believe I own the licensing right to Penn Pest of Carlisle, Inc. I was licensing the trade name and the logo to the Deitch Brothers, Frank and Samuel. Q Did you ever pay any money to anybody for Penn Pest of Carlisle, Inc., the company? A No, sir. Q Do you have a copy of the covenant not to compete up there? A Not in front of me, sir. MR. WINTER: I will provide it. BY MR. MOORE: Q Sir, you drafted this contract? A No, sir, I did not. Q You had this contract drafted on your behalf? A Y.s, sir, I did. o Tha covenant not to compet., could you pl.... r.ad that covenant? 23 ~ ""'" 1 A Covenant not to compete. "Licensee agrees 2 that in the event that the license agreement is terminated 3 as provided for under this agreement, licensee will not 4 engage in direct business competition in a similar retail 5 business, either as an owner, partner, shareholder, manager, 6 or consultant for a period of two years from the date of 7 termination of this license agreement and within a 50 mile 8 radius of the location of the principal place of business in 9 cumberland County." 10 Q That particular list of items or persons does 11 not include employee, does it? 12 A What is written here, sir? No, it does not. 13 I believe it says they will not engage in business. 14 (Whereupon, Defendant's Exhibit No. 3 15 was marked for identification.) 16 BY MR. MOORE: 17 Q I'm going to show you what has been marked as 18 Defendant's Exhibit No. 3 and ask if you can identify that 19 document? 20 A I recognize the document, and I recognize the 21 signatures on the back. But it's not filled out on the 22 face, sir. 23 Q Is this the agreement that wa. entered into 24 between Penn Pest, Inc.. and Penn Pest of Lancaster County, 25 Inc.? 24 t""'"\ ".... 1 MR. WINTER: I'll object, Your Honor, that's 2 a completely different agreement and completely different 3 organization. 4 THE COURT: What is the relevance? 5 MR. MOORE: Your Honor, in this particular 6 agreement, the covenant not to compete states employee. I 7 will offer this as evidence that, in fact, they knew the 8 distinction. If they wanted to place employee in the 9 agreement, they were able to do so and that they did not in 10 the agreement that's at issue here. 11 THE COURT: The objection is sustained. This 12 covenant, paragraph XV, speaks for itself and to be 13 interpreted based on the language in the covenant. It does 14 not need a separate contract for that. 15 BY MR. MOORE: 16 Q Sir, since January of -- strike that. Since 17 February of 1997, end of February of 1997, have you referred 18 customers to Deitch Pest Control? 19 A I don't know if I have or not, sir, to be 20 frank with you. If I may by answerinq that, I know there 21 are certain people that have called that personally had to 22 speak to Mr. Deitch, and we gave the nUllher where be could 23 be contacted. I don't know if that'. in your tra.. ot 24 referral. I don't want to get locked into reterral. 25 Q Isn't it true, sir, that custOllU'a have 25 ""'" '*' 1 contacted you through the Penn Pest of Carlisle, Inc., phone 2 number requesting warranty work, and you've referred those 3 customers to Deitch Pest Control? 4 A I have not directly, no, sir. 5 Q Isn't it true that your company or persons 6 that you direct have done so? 7 A They may have. I do not have firsthand 8 knowledge, sir. 9 Q Now, when Penn Pest, Inc., and Penn Pest of 10 carlisle, Inc., were doing business together in 1996, when 11 Penn Pest of Carlisle, Inc., would complete a job, they 12 would send a receipt to Penn Pest, Inc., correct? 13 A Sometimes they would hand deliver it. 14 Sometimes they would send it. But that scenario is correct, 15 yes. 16 Q Isn't it true, sir, that the scenario was 17 that when Penn Pest of carlisle, Inc., performed work they 18 would send the receipt to your company? 19 A As I said, sir, sometimes they would bring it 20 in. Sometimes they would send it to us through a carrier. 21 Sometime. Mr. Deitch would have his son drop it off. So how 22 it got to us varied, but they would give u. .ome of the 23 rec.ipt. for the work that they did. 24 Q And tho.e r.c.ipt. had the nam.. of various 25 cu.toaers and their addre.... on them? 26 1 A ~ ,..., 2 Q That's correct. And you retained those documents in your 3 files as of today? A We may, sir. I do not know. So you currently have a list of all of the 4 5 Q 6 customers of Penn Pest of Carlisle, Inc.? ., 7 A Frankly, sir, I don't know because we bought 8 Deitch Brothers Pest Control customers. I don't believe we 9 do have an accurate list, sir. 13 14 15 16 20 22 of? 23 24 25 Q Well, when Penn Pest of carlisle, Inc., began 10 11 doing business, they began sending you every receipt or 12 dropping off every receipt of every customer that they worked for, did they not? "~ .., A Absolutely not. And why do you say that they did not do that? Because, sir, since we got their phone number Q A 17 we have been made aware of numerous customers that Penn Pest 18 of Carlisle has serviced over the past two years that there 19 is not a single record that they existed. Q It's your testimony that there were cu.tomere 21 that have contacted you that you had no -- you had no record A That i. correct. Can you give .. the n....? Not at this .oment, .ir. Q A 27 1 2 3 several. 4 ,-. ~ Q A Can you tell me how many? I do not know offhand, sir. I know there are Q The document that is -- you've introduced as 5 Plaintiff's Exhibit No.1, and page two of that document 6 which you have identified as a Penn Pest form. 7 A No, sir, I said that is a form that we use 8 for our termite warranty. 9 Q In fact, that's a standard form in the 10 industry, isn't it? 11 A standard, sir, I wouldn't know if it is 12 standard. That is the form we use for termite. I have seen 13 that form before. I've also seen numerous forms before. 14 15 form? 16 17 Q So you know that other companies use this A I know, yes, I do. That is not the standard. And this form is one that you can obtain in Q 18 many different places? 19 20 21 22 23 24 25 A You may be now able to obtain that fora. You testified on direct examination that you Q opened doora for Mr. Deitch with realtors. A Yes, sir, I did. Q And you .entioned Gaughen and Century 21. A Yea, air, I did. Q Can you tell me who you contacted to open 28 I r """" ""'" 1 these doors? 2 A Sir, I couldn't tell you who I contacted to 3 open the doors in my own company. In the real estate 4 industry, we work sometimes with settlement agencies, 5 sometimes with the individual realtors. We have a 6 reputation of working with Jack Gaughen. We have a 7 reputation of working with Century 21 and Brenneman. 8 J suggested to Mr. Deitch when he was with us 9 that he should go down and introduce himself to whoever the 10 powers might be in that organization and also individual 11 realtors by not only dropping off business cards but perhaps 12 calendars. We also both -- I took him to realtor trade 13 shows where we both introduced ourselves simultaneously, so 14 I don't know exactly who we met, but we did this together. 15 And there are also realtors, for example, 16 Caldwell Banker, Re/Max in Mechanicsburg that if they would 17 have termite inspections outside of our zone we would 18 automatically give that to Mr. Deitch. Again, I was not in 19 the office. I couldn't give you the exact names, but that 20 practice went on. 21 MR. MOORE: That's all the questions I have, 22 Your Honor. 23 MR. WINTER: I have nothill9 on redirect, Your 24 Honor. 25 THE COURT: Sir, you aay step down. 29 ~ '*' 1 THE WITNESS: Thank you, sir. 2 MR. WINTER: Your Honor, we have no further 3 witnesses to call at this time. We would move for the 4 admission of our exhibits. 5 THE COURT: They are admitted. Defendant. 6 MR. MOORE: Your Honor, at this time I would 7 call Frank Deitch to the stand. 8 Whereupon, 9 FRANK JAMES DEITCH, 10 having been duly sworn, testified as follows: 11 DIRECT EXAMINATION 12 BY MR. MOORE: 13 Q Mr. DeitCh, could you please state your full 14 name and spell your last name for the record. 15 A Frank James DeitCh, that's D-e-i-t-c-h. 16 Q And your current address, sir? 17 A 433 ponderosa Road, CarliSle, Pennsylvania. 18 Q And your educational background? 19 A High school graduate with formal technical 20 training in the pest control indu.try regarding insect 21 identification, biology control, pesticide. and safety. 22 Q Have you ever done any teaching? 23 A Yea, I have. 24 Q What types ot teaching have you done? 25 A In California I taught state certified 30 Ilf5' ""'" """ 1 classes, in California and Nevada, on insect identification, 2 biology control, pesticides and safety. 3 Q Can you tell the Court, briefly, what your 4 recent employment history has been? When I say recent, I 5 mean from about -- what did you do from 1973 to 1988? 6 A From 1973 to 1988 -- I'm not exactly sure of 7 the exact years -- but from 1973, I worked for a company 8 called Van Waters and Rogers, firstly involved in chemicals 9 formulations, and then later involved in sales and marketinq 10 to pest control companies. 11 Q Did you do any traininq durinq that? 12 A Yes, that was a prerequisite to sales and 13 marketing to other pest control companies. 14 Q In 1988, did you form your own company? 15 A I believe it was 1988, yes. I formed a 16 company called -- a pest control company in California. 17 Q And how lonq did you operate that? 18 A I believe it was about three years. 19 Q And after you finished with that, what did 20 you do? 21 A After I finished with that, we sold the 22 business and home and moved here to Pennsylvania. After six 23 months, I regained employment with Van Waters and Rogers as 24 a sales repre.entative. 25 Q And how lonq did you work for Van Waters? 31 A years. Q A Pest, Inc. Q A "'" ~ 32 """"I ""' 1 2 Yes, sir. A Q I'm qoinq to ask you to turn to paqe 4 of 3 that document, section VIII. What does section VIII deal 4 with? 5 A Loqistical and consultinq support. Was it your understandinq that as part of 6 Q 7 this aqre..ent you would be provided with loqistical and 8 consultinq support? 9 A That's correct. 10 MR. WINTER: Excuse me, Your Honor, I'm qoinq 11 to object to any testimony if Mr. Deitch is qoinq to claim 12 that he didn't qet the benefit of his barqain. This is not 13 the forum to determine that. The issue is whether or not 14 the preliminary injunction can enjoin today. 15 THE COURT: Well, isn't that part of the 16 i.sue thouqh? I mean, if your client breached the 17 aqreement, is that not part of the overall i..ue as to 18 whether or not the preliminary injunction should be entered? 19 Is that your position? 20 MR. MOORE: That'e our position, Your Honor. THE COURT: I think it is relevant. MR. WINTER: Then I would ask to .....erve the 21 22 23 riqht, if necessary, to recall then Mr. Horan for ~ttal. 24 25 THE COURT: Of course. 33 j p ^, ""'" """' 1 BY MR. MOORE: 2 Q Now, I want to go through some of these items 3 that are listed here that you were to receive as part of 4 this agreement. The first one is telephone answering 5 service.. Did Penn Pest, Inc., provide you with tel.phone 6 answering service.? 7 A Yes. a Q Were those services adequate? 9 A No. 10 Q Can you explain to the Judge what types of 11 problems you were having with the telephone answering 12 services? 13 A The prOblems was because of the phone system 14 we would receive monthly phone bills showing the amount of 15 phone calls that would ring into Penn Pest, Inc., in 16 Harrisburg. 17 Q Explain, so the Judge understands, when you 1a were first set up as a company -- 19 A Yes. 20 Q -- how was the Vhone .y.te. set up to work? 21 A Initially the phone syst.. was s.t up to work 22 to where it would ring into the Harri.burq branch through a 23 local Carlisle phone nu.ber. 24 Q And what wa. the procedure once that phone 25 call ca.e into Penn pe.t, Inc.? 34 ~ ,... 1 A Then the procedure was for Penn Pest, Inc., 2 to answer the phone, take messaqes and qive us the 3 messaqes. 4 5 And why did that system not work properly? On observinq the phone bills that would come Q A 6 in once a month, I would see as much as -- or in excess of 7 40 one minute phone calls and maybe 60 phone calls total. I 8 was with that impression then that I wasn't -- either the 9 phone wasn't beinq answered or I wasn't qettinq any 10 messaqes. 11 Q So the phone calls that you were receivinq, 12 or that you were qettinq billed for, you were not receivinq 13 messaqes from those phone call.? 14 A In my observation, I felt that one .inute 15 phone calls wasn't enouqh ti.e to discuss much of anythinq 16 on the phone reqardinq service or business. 17 Q Now, did you eventually chanqe the syst.. to 18 better effectuate your client contact? .. r 19 A Yes. 20 Q And how was the sy.te. chanqeel? 21 A I had the phone company rinq the telephone 22 into.y office here in Carlisle. 23 Q So the telephone service that Penn Pe.t, 24 Inc., was suppa.eel to provide you was not provided properly 25 so you had to take that over yourself? 35 ~ "... 1 A That's correct. 2 MR. WINTER: I'm going to object to the __ 3 THE COURT: Sustained, to the form of the 4 question. It is stricken. Ask direct questions. Don't 5 make .tatements. 6 BY MR. MOORE: 7 Q Can you tell the Court why you changed the 8 phone system? 9 A In order to gain better control of incominq 10 calls. 11 Q And the phone system under -- the phone 12 service was supposed to be provided. Was the phone system 13 supposed to be provided by Penn Pest, Inc.? 14 A According to the agreement. 15 Q Now, the next item down was -- or letter C 16 under the agreement refers to billings. Did Penn Pest, 17 Inc., provide the billings? 18 A Yes. 19 Q Can you explain how the system was supposed 20 to work in the beginning? 21 A In the beginning, all service slips, all 22 money was sent or delivered to the Harrisburg office on a 23 weekly basis where the money was then -- I don't know how to 24 .ay it. The money was then taken, deposited, and then we 25 would be returned our eight percent commission alonq with 36 /5/ ~ ~ 1 two percent advertisinq. 2 Q Who was supposed to qet the eiqht percent and 3 the two percent? 4 A Penn Pest ot Carlisle, Inc. You .ean -- I 5 don't think I understand the question. 6 Q Okay. Initially when the sy.te. was set up, 7 you would take the receipts and the money and provide it to 8 Penn Pest, Inc.? 9 A To Penn Pest, Inc. 10 Q Would there be any billing that was required 11 by Penn Pest, Inc.? 12 A Originally that was the way it wa. set up, 13 yes. 14 Q And was there any problem with the way the 15 system was set up? 16 A Yes. 17 Q What was the proble.? 18 A The problem ~as with not receivinq money in 19 return trom the services that we provided, subcontract work, 20 commission work, and to .y knowledqe some ot our own local 21 work. 22 Q And were you gettinq paid for that work? 23 A It I understand the question correctly, we 24 were beinq paid tor commission and subcontract work, y.s. 25 Q What type ot delays, it any, wer. existing 37 i"""\ ,....,. 1 with that procedure? 2 THE COURT: wait a lIinute. He tirst told lie 3 he did not qet all of it. Now you are talkinq delays. What 4 was the problell here? You told lie what the systell wa. 5 supposed to be. Now, what was the problell? I all askinq 6 you. 7 THE WITNESS: Okay. You are askinq lie? 8 THE COURT: Yes. 9 THE WITNESS: The problem was that we were 10 not receivinq 1I0ney prollptly, number one. As lIuch as nine 11 1I0nths would qo by. And in our trust for the first year, we 12 had full faith in the whole 1I0ney lIanaqellent thinq to where 13 at this point in tille because of our trust and iqnorance we 14 don't know for sure how lIuch 1I0ney is lIissinq. 15 (Whereupon, Defendant's Exhibit No. 4 16 was marked for identitication.) 17 BY MR. MOORE: 18 Q Have you made sOlie effort to try to account 19 for lIissinq any lIissinq cOllJlissions? 20 AYe.. 21 Q I've shown you a document that's lIarked 22 Defendant's Exhibit No.4. Can you tell .e what that 23 repre.ents? 24 A This is an aqed receivable ledqer. This 25 repre.ents co..ission, pest control work that IIY brother and 38 ~ ,.,., 1 I had done for Penn Pest, Inc., on the West Shore. 2 Q And have you been paid for those items? 3 A Not at this tilDe. 4 Q And what's the total amount that you have on 5 that? 6 A On this particular item, $269.80. 7 Q And do you know whether or not there are 8 other commissions that you have not been paid for? 9 HR. WINTER: I'm going to object to that 10 question, Your Honor. 11 THE COURT: sustained to the form of the 12 question. Do you have any other documentation as to 13 commissions you claim are not paid for? 14 THE WITNESS: I'll sorry, sir? 15 THE COURT: Do you have any other 16 documentation as to claims you lIaintain they should have 17 paid you for and you have not received the money, other than 18 what you have shown us? 19 THE WITNESS: No. 20 THE COURT: Next question. 21 BY MR. MOORE: 22 Q Now, you've also said that there were scae 23 delays in payaent. 24 (Whereupon, eefendant's Exhibit No. 5 25 was marked for identification.>> 39 ""'" "",.., 1 BY MR. MOORE: 2 Q I'm going to show you what we have marked as 3 Defendant's Exhibit No. 5 and ask if you can identify what 4 that document represents? 5 A This document represent. copies of check. 6 received from Penn Pest, Inc. 7 Q Now, what is the first check on the top? 8 What does that represent? 9 A That represents a check received after 10 commissions have been taken out of it. 11 Q Now, the check that's at the bottom, Penn 12 Pest, Inc., what's the date on that check? 13 A The date on this check is 9/20/96. 14 Q And when did you receive the check? 15 A October the 16th. 16 Q '961 17 A '96, pardon .e. 18 Q Turning to the next page, what does that 19 represent? 20 MR. WINTER: Excuse me, Your Honor, I would 21 like .o.e confirmation as to when Mr. Deitch receiVed that. 22 There's nothing on the face of this docuaent. 23 THE COURT: That is when he sdd he received 24 it. You can cro.. hi. .. to how he know. that. He aaid he 25 received it that date. Next question. 40 ~ ,... 1 BY MR. MOORE: 2 Q What does page two represent? 3 A Page two represents a check that went to the 4 Penn Pest Harrisburg ottice, whereas they took the royalties 5 out at the check and sent me the balance at $28.80. 6 Q And why is that in this packet? 7 A I was curious as to why the check was marked 8 the Lebanon branch. I didn't know why the Lebanon branch -- 9 Q That's not a delayed check then? 10 A No. 11 Q The next page, can you tell .e what that 12 represents? 13 A The next page represents termite treatment 14 that was pertormed, I believe it was, in May. I can't 15 read -- it's been copied over. I can't read it. I believe 16 it was pertormed in Kay at 1996. That was to be billed by 17 the Harrisburg ottice that I did not receive a payment tor 18 it-until December of 1996. 19 Q Turning to the next page, what does that 20 represent? 21 A The next page represent. apartaent coapiexe. 22 that we do on the East Shore tor Penn pe.t, Inc. The 23 notation that I made here is that we hadn't been paid until 24 there was 17 weeks' worth ot .ervice done to that, wherea. 25 nonally it'. net 30 tor tour to five week. depending on the 41 ISf, 1 2 3 4 S 6 7 8 9 10 11 12 13 14 lS 16 17 18 19 20 21 22 23 24 25 """' ,.., month. o And what is the last document? A The last document is a check stub notating payment for November service or payment for -- and the payment was initially supposedly made in November. But the payment we received was not until about the middle of January, and the payment stated that they had to send another check because the other was lost in the mail. o When was the original check supposed to be issued? The original check was supposed to be issued A in Nov_ber. o The next item under the list of logistical support is listed as training. Did you ever receive any training from Penn Pest, Inc.? A Yes. o What training did you receive? A At what we called presidents' meetings, manufacturers' representatives would be invited to give training. o Were you ever asked by Penn Pest, Inc., to provide training? A Yes. Q And were you ever compensated for that? A No. 42 1 2 3 """" """ Q A How often were you asked to provide training? Once. Q The next item, assist in account development. 4 Did they assist you in developing any accounts? 5 6 A Not in the Carlisle territory. The next item says assist -- two items down, Q 7 assist in obtaining insurance. Did they ever assi.t you in ., 8 obtaining insurance? 9 10 A No. Q Did they ever do anything to try to help you 11 to get insurance? 12 13 A Yes, they said to call a certain company. The next item is assist in licensing ~ .., Q 14 procedures. Did they ever assist you in any licensing 15 procedures? 16 A 17 Q 18 talks about No. Now, one of the provisions of the contract under paragraph IV, license fee, talks about 19 two percent of the license fee for advertisinq. 20 21 here. 22 BY MR. MOORE: 23 THE COURT: Hold on until these trucks get by Q Under the lic.n.e f.. sectIon, what was the 24 two percent of gross receipts supposed to be used for? 25 For adverti.inq. A 43 "'"'" ,..... 1 Q And when you initially entered into thi. 2 agreement, what was happening with that two percent? 3 A The two percent was returned in the form of a 4 check written to United Telephone Company for yellow page 5 advertising. 6 Q And did that change? 7 A Yes. 8 Q And when did that change? 9 A In about March of 1996. 10 Q And how did it change? 11 A Where the two percent advertising wa8 then 12 held in order to cooperatively advertise with all of the 13 other branches. 14 Q And what, if anything, have you 8een a8 part 15 of thi8 advertising? 16 A What I have seen is desk calendar8. 17 Q That's all you have gotten in terms of your 18 advertising dollar? 19 A That'8 all that I have .een. 20 Q 00 you know how much that two percent i. 21 equivalent to in 1996? 22 A In exce.. of $800.00, I believ.. 23 Q Now, do you curr.ntly have aces.. to the Penn 24 Pe.t of Carlisle, Inc., phone number? 25 A I don't understand the question. 44 "'" "'" 1 Q Who has the phone number for Penn Pest of 2 Carlisle, Inc.? 3 A Penn Pest, Inc. 4 Q Does that Penn Pest of Carlisle, Inc., phone 5 nuaber ring at your residence? 6 A No. 7 Q Can you explain to the Court why that phone e number is not ringing at your residence? 9 A I'll do the best I can. I would say 10 so.ewhere late January was when we went into so.e agreements 11 or negotiations in order to resolve this relationship. 12 Through those events -- 13 THE COURT: Wait a minute. stop. He has 14 left Penn pest, Inc., right? 15 MR. MOORE: Pardon .e? 16 THE COURT: He has left Penn Pest, Inc., he .7 does not work for the. anymore? 18 MR. MOORE: He doesn't work for Penn Pest of 19 carlisle. 20 THE COURT: And they are auinq hi., and they 21 want a preliainary injunction, right? 22 MR. MOORE: That'. right. 23 THE COURT: Why in the world should he be 24 usinq their phone nuaber? Of cour.e he i. not uainq their 25 phone nuaber. They told .e he turned the phone n'''-r bIIck. 45 Q A Q A Q A Q Control? A Q A ""'" ,.. 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1""'\ ~ Allowance certificate. Q And the date on that particular withholdinq form? A April 7th, 1997. Q And can you explain what your duties are as an e.ployee of Deitch Pest Control? A My duties are to provide pest control service, extermination and termite inspections. MR. MOORE: That's all the questions I have. THE COURT: Let's take a break. Have a seat. We will reconvene at quarter after. (Whereupon, a brief recess was taken.) THE COURT: Cross. MR. WINTER: Thank you, Your Honor. CROSS EXAMINATION BY MR. WINTER: Q Mr. Deitch, just to back up very quicklY. I believe it was your testimony that you now work as an ..ploye. for Deitch P..t Control, is that correct? AYe.. Q And, in fact, you 'v. introduced an exhibit showinq a withholdinq fora that you've just siqned, is that correct? AYe.. Q And, in fact, you siqned that thi. p..t 47 I~L """" "...... 1 Deitch. Now, when we qo back to this covenant not to compete, you certainly acknowledqe that that's your siqnature on the document, is that correct? 2 3 4 5 A Q Correct. And in the covenant not to compete, you 6 appear to be takinq issue with the fact that you're not 7 servinq as an owner, partner, shareholder, manaqer or 8 consultant, is that correct? 9 10 A Correct. Q And that your position to the Court i., hey, 11 I'm only an employee of Deitch Pest Control, is that riqht? 12 13 A Correct. Q okay. Now, Mr. Deitch, prior to your 14 becominq a franchisee of Penn Pest, to the be.t of your 15 recollection, what was the most money that you ever earned 16 in a year? 17 18 dollars. 19 20 21 22 that correct? 23 24 A In a year, in excess of a hundred thousand Q And is that when you were in california? Ye.. A Q And you sold that coapany in California, i. A Ye.. Q When you c... back last, YO\I vsnt to work for 25 Penn Peet a. an ..ployee, didn't Y0\l1 49 ~I f r , r ~ ~ 1 A Eventually, yes. 2 Q And you were making $18,000.00 a year as a 3 .ervice technician, weren't you? 4 A Correct. 5 Q And you told Mr. Moran that you were 6 satisfied to be earning that amount of money, is that 7 correct? 8 A Initially, yes. 9 Q Because you wanted to get back into the 10 business, is that right? 11 A Correct. 12 Q Then when you left the employment of Penn 13 Pest to start your own business, what kind of money were you 14 making in 1993 and 1994? 15 A I'm estimating in excess of $40,000.00. 16 Q But you told Mr. Moran that you actually 17 weren't doing too well, isn't that true? 18 A That's not true. 19 Q You were very appreciative of the job that he 20 gave you in December of 1994, weren't you? 21 A That's true. 22 Q And that was, what, a $600.00 job? 23 A I don't recall the amount. 24 Q But that vas certainly money that you needed 25 at that ti.., isn't that true? 50 I~ "'"' "..., 1 A Of course. 2 Q Now, in the tax year of 1995, did you file 3 two tax returns, one under the name of Deitch Brothers Pest 4 Control Services and one under the name of Penn Pest of 5 Carlisle, Inc.? 6 A I suppose so, yes. 7 MR. WINTER: May I approach? 8 THE COURT: Yes. 9 MR. WINTER: I'll ask that these be marked as 10 Plaintiff 2 and Plaintiff 3, please. Plaintiff 2 will be a 11 U.S. Partnership Return of Income for the year of 1995 under 12 the name of Deitch Brothers Pest Control Services. 13 (Whereupon, Plaintiff's Exhibit No. 2 14 was marked for identification.) 15 MR. WINTER: And Plaintiff 3 will be a U.S. 16 Corporation Short-Form Inco.. Tax Return for tax year 1995 17 under the name of Penn Pest of Carlisle, Inc. 18 (Whereupon, Plaintiff'. Exhibit No. 3 19 was marked for identification.) 20 BY MR. WINTER: 21 Q Mr. Deitch, I show you both Plaintiff's 22 Exhibit 2 and Plaintiff's Exhibit 3. Would you pleaee take 23 a look at tho.. for a .inut. and s.. if you ar. fa.iliar 24 with those docuaenta. 25 MR. MOORE: 'tour Honor, may I aaJt for an 51 f"i'ol "" 1 offer of proof? I'm not sure what the relevance of these 2 documents are. 3 THE COURT: Offer. 4 MR. WINTER: Very simple, Your Hotlor, we 5 simply want to show what the gross -- total gross income 6 that Mr. Deitch generated in 1995 was. 7 THE COURT: And this is when he was a 8 licensee, right? 9 MR. WINTER: That's correct, Your Honor. 10 THE COURT: I think it is relevant in light 11 of your maintaining, in effect, that plaintiff breached its 12 contract and caused him damage. Can we agree those are the 13 tax returns or don't you know, counsel? 14 MR. MOORE: I don't know, Your Honor. 15 THE WITNESS: Well, I'. trying to, you 16 know -- I'm assuming. I can only assulIIe that they are, Your 17 Honor. 18 THE COURT: Are you representing that you got 19 the.. in discovery or did you have thelll? 20 MR. WINTER: W. had thelll. n THE COURT: A. part of your busines.? 22 MR. WINTER: That'. correct, Your Honor. 23 THE COURT: You ere repre.entlng they ar. the 24 accurate returns? 25 MR. WINTER: Y.., ve an, Your Honor. 52 Ih7 "'" """ 1 THE COURT: Let's assWlle that they are. 2 THE WITNESS: Okay. I assWlle that they are. 3 BY MR. WINTER: 4 Q Again, just very briefly for the record, 5 you'll notice that both of these were generated by an 6 accounting company called stott and Group Financial services 7 here in Carlisle? 8 A That's correct. 9 Q Are you familiar with that organization, Mr. 10 Deitch? 11 A Yes. 12 Q Would you testify that you, in fact, took 13 your docuaents to that group to have them generate these 14 returns? 15 A Yes. 16 Q And to the best of your recollection, would 17 you have been called in at the appropriate time to sign 18 those returns? 19 A Yes. 20 Q Very simply, I would like you to look first 21 at Plaintiff's Exhibit No.2, which is the partnership 22 return, and in the upper right-hand side, line lb, it shove 23 groas receipts or .ales. What is that dollar a.aunt, sir? 24 Excu.e me, that would be line le. 25 THE COURT: Point it out to hi.. 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ~ "'" THE WITNESS: MR. WINTER: THE WITNESS: Line 1c says 61,753. Dollars? Dollars. BY MR. WINTER: Q And then if you'll turn to Plaintiff's Exhibit 3, which is the partnership -- excuse me, the corporation return, up at the top in the box where it says D, the total assets of $12,312.00, do you agree with that, Mr. Deitch? A That's what it says. Q And would you agree with me that the sum of those two numbers would be approximately $74,000.00, 61,753 plus 12,312? A Yes. Q Thanlc you, sir. So this is what you reported to the Internal Revenue Service as being your gross income for tax year 1995, is that correct, sir? A That's correct. Q That's certainly more than the $18,000.00 that you earned when you were an ..ployee of Penn Pest, is that correct? A That'. correct. Q And it's certainly more than the number that you've .tated to the Court of approximately 40,000 that you claim that you earned in the year that you had your own 54 ,,9 """" "*' 1 business between the time that you were an employee and the 2 time that you were a franchisee of Penn Pest, is that 3 correct? 4 A That's correct. 5 Q Thank you. During this past week, have you 6 been actively engaged in serving as a service technician for 7 a pest control company? 8 A Yes, I have. 9 Q So you've been out there performing work, 10 calling on customers, is that correct? 11 A No. I've been out there performing work, 12 doing pest control and inspections. 13 Q Just one more question, sir. You offered an 14 15 16 17 18 19 page of that. Is that your handwritinq on that little slip 20 that appears to be stapled to the ledger sheet? 21 A Yes, it is. 22 0 Is that the types of records that you kept on 23 your jobe? 24 A No. 25 0 But is that the type of record that you exhibit that consisted of sOlDe checks. On the third page of that exhibit, there is a ledger sheet, and then there ia something that appears to be atapled at the top and photocopied. I'll just show that to you. That would be Defendant's Exhibit No. 5. I'm referring you to the third 55 ....... ,.-, 1 submitted to Penn Pest when you were invoicing or when you 2 wanted to be paid? 3 A No. 4 Q What is that indicative of? 5 A That's a note that I made to myself a~ I was 6 trying to locate the whys and where of the payment for the 7 termite treatment done in May of that year. 8 Q So, in fact, when you would submit your 9 paperwork to Penn Pest, it was always very detailed and 10 fully written out and documented, is that correct? 11 A On all of the forms that we used and service 12 slips and ledgers, yes. 13 Q Okay. Thank you, sir. Just one last 14 question. In your license agreement with Penn Pest, there 15 is a paragraph XI. Let me refer you to the page number, 16 sir. That would be on page 6, Roman numeral XI, right to 17 audit. Do you .ee that, sir? 18 A Yes. 19 Q To the best of your knowledge, have you, in 20 fact, permitted Penn Pest to have an audit of your books? 21 A I'. sorry, would you say the question again? 22 Q To the best of your knowledge, have you 23 penaitted Penn Pest to have an audit of your book.? 24 A No. 25 Q One last question. I promise this will be 56 ""'" "'" 1 the last question. You testified to some detail that you 2 didn't feel that Penn Pest had provided to you all of the 3 services and support that were stated in this aqreement. To 4 the best of your knowledqe, Mr. Deitch, at anytime when this 5 agreement was in effect, did you ever discuss this or bring 6 this is.u. up with Mr. Moran, complain to him or suqqest to 7 him that thinqs could be done better? 8 A Yes. 9 MR. WINTER: Thank you. No further 10 questions. 11 THE COURT: Any redirect? 12 MR. MOORE: No, Your Honor. 13 THE COURT: Sir, you may step down. 14 THE WITNESS: Thank you. 15 THE COURT: Next. 16 MR. MOORE: At this tillle I would call Tholllas 17 Deitch to the stand. 18 Whereupon, 19 THOMAS LAWRENCE DEITCH, 20 having been duly .worn, t.stified as follows: 21 DIRECT EXAMINATION 22 BY MR. MOORE: 23 Q Mr. Deitch, can you pl.as. state your full 24 nUle and spell your last nallle. 25 A Thomas Lawrenc. Deitch, O-e-i-t-c-h. 57 """ ~ 1 Q And your educational background? 2 A A high school graduate, 1986, and a lot of 3 technical training in the pest control field, seminars on 4 insect biology and control, pesticide application and its 5 aafety. 6 Q Can you please give the Court a brief 7 employment history? 8 A I spent four years in the military from 1986 9 to 1990, after which I worked for my dad at Franko's Pest 10 Control in California, and when he sold the company, I 11 worked for the company that purchased that. Then I worked 12 for Airborne Expres. as a courier, and then We.tern Parcel 13 Expres. as a courier at which time -- that was in '96. I 14 came out here in March of '96 and became a franchisee of 15 Penn Pest, Inc. 16 Q Have you recently formed a company by the 17 name of Deitch Pest control? 18 A Ye., I have. 19 Q And can you tell the Court what things you've 20 done to set up this company? 21 A I submitted an application for an EIN number, 22 set up bank accounts, had meetings with accountants to .et 23 up a payroll, and then currently working on workman's camp :l4 in.urance. 25 MR. WINTERl Your Honor, we would stipulate 58 ~ ,... 1 that Thomas Deitch apparently had set up an orqanization 2 called Deitch Pest Control. In the interest of time, we'll 3 certainly stipulate to that. 4 THE COURT: Okay. So stipulated. 5 MR. WINTER: We will even stipulate that 6 apparently he has an employee named Frank Deitch workinq 7 there. 8 THE COURT: So stipulated. 9 MR. WINTER: We wish the Court to take 10 special notice of that relationship. 11 THE COURT: Next. 12 MR. MOORE: That's all the questions I have, 13 Your Honor. 14 THE COURT: Any cross? 15 MR. WINTER: Just a few. 16 CROSS EXAMINATION 17 BY MR. WINTER: 18 Q Hr. Deitch, you are, in fact, a franchisee 19 and licensee of Penn Pest, Inc., is that correct, sir? 20 A Yes, sir. 21 Q And you have now set up a company called 22 Deitch Pest COntrol, i. that correct? 23 A Yes, sir. 24 Q And that's operatinq here in CUmberland 25 County? 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2" 25 ~ "'" Yes, sir. And you've hired your dad as an employee, is A Q that correct? A That's correct. Q Is your Uncle Sam involved with that orqanization in any way? A No, sir. Q And I see that on Monday here you had your dad siqn a withholdinq form, is that correct? A That's correct. Q And, of course, this equity hearinq had been scheduled sometime prior to April the 7th, is that correct, air? A To the best of my knowledqe. MR. WINTER: I have no further questions. Thank you, sir. THE COURT: Anythinq else? MR. MOORE: No, Your Honor. THE COURT: Sir, you may step down. MR. MOORE: Your Honor, the only other person that really hasn't testified here is Sam Deitch. Now, I do not represent Hr. Sam Deitch. He i. here on hi. own under a deaand for appearance by the plaintiffs. If the Court would like, I would be prepared to put hi. up and explain what his role, if any, is in the current situation. 60 17:> ~ ~ 1 THE COURT: Well, you do not represent him. 2 Samuel Deitch is a defendant, riqht? 3 MR. MOORE: That'. riqht. 4 THE COURT: He may represent himself. You 5 are qoinq to rest? 6 MR. MOORE: I will rest. I would offer the 7 exhibits that I've presented. The Court has ruled that 8 number three is not admissible. 9 THE COURT: And how about the others, any 10 objection? 11 MR. WINTER: No objection with the others, 12 with the exception of number three, Your Honor. 13 THE COURT: The others are admitted. Now, 14 Mr. Deitch, do you wish to testify and present evidence? 15 MR. DEITCH: About the only thinq -- 16 THE COURT: Do you wish to testify or present 17 evidence? I will let you testify if you wish. 18 MR. DEITCH: Yes, sir. 19 THE COURT: Come on up. 20 Whereupon, 21 SAMUEL EUGENE DEITCH, 22 havinq been duly sworn, testified as follows: 23 MR. WINTER: Excuse me, Your Honor, before 24 Hr. Samuel Deitch begins his te.timony, in the interest of 2$ time, if it'. our understandinq that Mr. Deitch is not 61 """" "" 1 actively involved in the pest control business at this time, 2 we have no issue with him at this time. 3 THE COURT: Do you drop the claim for 4 preliminary injunction? 5 MR. WINTER: We will drop the claim, with the 6 understandinq that Hr. Deitch is not qoinq to be in the pest 7 control business. It's our understandinq that he is not, 8 and he does not plan to be in the future. 9 THE COURT: Just tell me your name and your 10 address. 11 THE WITNESS: Samuel Euqene Deitch, 12 D-e-i-t-c-h, 175 Limekiln Road, Carlisle. 13 THE COURT: Are you now involved in the pest 14 control business? 15 THE WITNESS: No, sir. 16 THE COURT: Do you intend to be in the 17 future? 18 THE WITNESS: No, sir. 19 THE COURT: Do you consent to the plaintiff 20 withdrawinq his claim against you? 21 THE WITNESS: No. Do I? Oh, yes, I do. 22 THE COURT: Good. Have a seat. 23 MR. WINTER: We would just reserve our riqht 24 if there would be a violation in the future. 25 THE COURT: We will enter this order riqht 62 ""'"' f"'\ 1 now. 2 AND NOW, this 11th day of April, 1997, upon 3 representation by plaintiff, Penn Pest, Inc., that they are 4 withdrawinq their petition for a preliminary injunction 5 aqainst Defendant Samuel Deitch, and with the consent of 6 Samuel Deitch, the petition seekinq a preliminary injunction 7 aqainst Samuel Deitch IS WITHDRAWN AND DISMISSED. 8 Now, any rebuttal from plaintiff? 9 MR. WINTER: I don't believe so, Your Honor. 10 THE COURT: The record is closed. Off the 11 record argument, movinq party. 12 (Whereupon, argument was held off 13 the record.) 14 (Whereupon, the hearinq was concluded 15 at 10:50 a.m.) 16 17 18 19 20 21 22 23 24 25 63 -, I'"'. 1 CERTIFICATION 2 3 I hereby certify that the proceedings are 4 contained fully and accurately in the note. taken by me on 5 the above cause and that this ie a correct transcript of 6 same. 7 8 ') (~~ \..-.' _ 'Ie Pamela R. Sheaffer Official Court Report \ 9 10 ---------------------------------- 11 12 The foregoing record of the proceedings on the 13 hearing of the within matter is hereby approved and directed 14 15 to be filed. / ./ 16 \~(J t.P1'l& Edgar B. 17 18 19 20 21 22 ,..., '-~ ,.., , .... I I . . .." ,.., ~, '0. - , ~... , - , ., \0 "f .... 23 24 25 64 /11 ~ PENN PEST,INC., A PENNSYLVANIA CORPORATION, PLAINTIFF V. FRANK DEITCH AND SAMUEL DEITCH AS INDIVIDUALS; FRANK DEITCH AND SAMUEL DEITCH TRADING AS : DEITCH BROTHERS PEST CONTROL; : FRANK DEITCH AND SAMUEL DEITCH TRADING AS PENN PEST OF CARUSLE, INC., A PENNSYLVANIA CORPORATION, DEFENDANTS ,..... IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA . : 97.14n EaUITY TERM 1fi.Bj:: OPINION-PURSUANT TO PENN~'(J.VANIA 8ULE OE Aef'EUATE eROCEDURE 1925 BI;FORE BAYLEY. J. BAYLEY, J., August 12, 1997:- On April 25, 1997, following a hearing in this Equity suit on the motion of plaintiff, Penn Pest, Inc., for a preliminary injunction, it was ordered: (1) Defendant, Frank Deitch, is prelimInarily enjoined for a period of two years from March 17, 1997, from violating the provisions of the Covenant Not To Compete in paragraph XV of the Ucense and Consulting Agreement entered into on March 2, 1995, between Penn Pest, Inc., Ucensor, and Penn Pest of Carlisle, Inc., and Deitch Brothers Pest Control. Licensee. (2) The preliminary injunction imposed in paragraph 1 shall include Frank Deitch working in his current capacity at Deitch Pest Control.' (3) ThIs preliminary InjunctIon Is conditioned upon plaintiff tiling a bond or cash in the amount of $10,000 WIthin ten (10) days of thla date pursuant to Pennsylvania Rule of Civil Procedure 1531(b)(1) & (2). (Emphasis added.) IJO '"'" ...- 97-14n EaUITYTERM 1. We find that designating Frank Deitch as an 'employee" of Deitch Pest Control Is a subterfuge in an attempt to avoid his having to comply with the Covenant Not To Compete that he is now violating. (Emphasis added.) On May 9, 1997, plaintiff filed a petition to extend the date for posting the bond required In paragraph 3 of the order of April 25. An order was entered '[t]hat the Cumberland County Prothonotary's Office shall accept the $10,000.00 performance bond from the Petitioner in full compliance with the terms and conditions of this Court's Decision dated April 25, 1997.' The $10,000 bond was posted on May 10, 1997. On May 27, 1997, defendant, Frank Deitch, against whom the preliminary injunction was entered, filed a direct appeal from the order of April 25, 1997, to the Superior Court of Pennsylvania. Appellant's counsel failed to provide this judge with notice of the filing of the appeal as required by Pennsylvania Rule of Appellate Procedure 906(a)(2). We learned of the appeal when notified by the Superior Court of Pennsylvania on June 23,1997. On June 23, we ordered appellant to file a statement of matters complained of on appeal. The statement filed on July 7, 1997, sets forth: 1. Where a restI ictive nof'loCOmpete clause in a license and consulting agreement does not prohibit the defendant from working as an emplOyee for a competing bus/ness, did the trial court 8fT by failing to strictly construe the restrictive covenant and enjoining defendant from worklng as a [sic! employee for his son's sole proprietorship? 2. Did the trial court 8fT by permitting the plaintiff to post bond after the time set by the original Older of court, where the lIlooc:tlon dlalolved when the bond was not timely posted? -2- ~ .. 97-14n EQUITY TERM Penn Pest, Inc. is headquartered in Harrisburg, Dauphin County. The corporation has been in existence for nine years. Appellant, Frank Deitch, has technical training in the pest control industry and has worked in that field since the early 1980s. In March, 1993, plalntiff hired appellant as an employee to be a full-time termite and pest control service technician. In November, 1993, appellant left his employment with plaintiff and started his own similar business. In December, 1994, appellant told PatriCk Moran, the President of Penn Pest, Inc., that business was slow. Moran suggested that they enter into a Joint business relationship. On March 2. 1995, plaintiff executed a written Ucense and Consulting Agreement with Frank Deitch and his brother Samuel Deitch, the partners in Deitch Brothers Pest Control, and Penn Pest of Carlisle, Inc., of which appellant Frank Deitch was president. Paragraph YN of the Agreement provided: ~N~NT NOT TO COMPETE. Ucensee agrees that in the event that the License Agreement is terminated as provided for under this Agreement, Ucensee will not engage In direct bualneaa competition In a almllar retail buslne.., either aa an owner, partner, sherehold8r, manager, or consultant for a period of two (2) years from the date of termination of this Ucense Agreement and within a fifty (50) mile radius of the location of the principal place of business in Cumberland County. (Emphasis added.) ~ .. e The parties provided retail pest control services to the public under the Ucense Agreement until appellant severed the business relationship in March, 1997, and began competing with plaintiff by providing retail pest control services to the public within a fifty mile radius of the business location in Cumberland County. The seMces provided by appellant were exactly the same as he had been providing as a IIc<<laee -3- IfL ... -- 97-14n EQUITY TERM of plalntiff under the Agreement dated March 2, 1995. On March 21, 1997, plalntiff filed a complalnt in Equity and an ancillaly motion for a preliminary Injunction. I As of April 11, 1997, the date of the hearing on the motion, appellant was still providing competing retail pest control s8lVices to the public within the area restricted by the parties' Covenant Not To Compete. Appellant clalmed that he was an employee of Deitch Pest Control, a company owned by his son, Thomas Deitch. Thomas Deitch is a licensee and franchisee of plaintiff herein, Penn Pest, Inc., in Lancaster County. After his father ceased being a licensee of plaintiff, Thomas Deitch formed a company, Deitch Pest Control, to operate In Cumberland County. Thomas Deitch testified that his company hired his father to provide pest control services to the public and that his father has no ownership interest In the company. A preliminary injunction seeks to malntain the status quo until the rights of the parties can be finally adjudicated. New c.stle Orthopedic Assoc. v. Bum.. 481 Pa. 480 (1978). In T.W. Phillips Gaa and Oil Co. v. People. Natural Gas Co., 89 Pa. Commw. 377 (1985), the Commonwealth Court set forth the well-established standards necessary for the issuance of a preliminary Injunction: A court may grant a preliminary injunction only where the moving party establishes the following familiar elements: (1) the relief Is necessary to prevent immediate and irreparable harm which cannot be compensated by damages; (2) greater injury will occur from refusing the Injunction than from granting it; (3) the injunction will restore the parties 1. No. a:ttlnjunctlon was sought or 8lltered. -4- IS3 --- ,.. 97-14n EQUITY TERM to the status quo as it exlsted Immediately before the alleged wrongful conduct; (4) the alleged wrong Is manifest, and the Injunction is reasonably suited to abate it; and (5) the plaintiffs right to relief is clear. (Citation omitted.) In Pennsylvania, a restrictive covenant must meet three requirements: (1) the covenant must relate to the contract for the sale of goodwill or other subject property or to a contract of employment; (2) the covenant must be supported by adequate consideration; and (3) the application of the covenant must be reasonably limited in both time and territory. Piercing Pagoda, Inc. v. Hoffner, 465 Pa 500 (1976). In the case sub ludice, plaintiff established all of the standards and requirements for the issuance of a preliminary injunction. In entering the preliminary injunction against appellant, we made a specific finding 'that designating Frank Deitch as an 'employee' of Deitch Pest Control is a subterfuge In an attempt to avoid his having to comply with the Covenant Not To Complete that he is now violating.. Notwithstanding, appellant, noting that covenants not to compete are to be strictly construed, Harry Blackwood, Inc. v. Caputo, 290 Pa. Super. 140 (1981), maintains that this court erred in issuing the preliminary injunction due to the fact that he is an employee of his son's company, Deitch Pest Control, and not an owner, partner, shareholder, manager, or consultant as those terms are used in the restrictive covenant In paragraph 'IN of the parties' Ucense and Consulting Agreement In Grllka v. I..,caon, 383 Pa. Super. 244 (1989), the Superior Court stated: It has been held that nothing will be deemed a violation of a restrictive covenant that is not in plain disregard of its expressed words. -5- "" .. 97-14n EQUITY TERM Moreover, this Court cannot enlarge a restrictlon by Implication for the restrictlon must be construed most strictly against the one asserting rights under it. * * * [w]hen construing a restrictive covenant contained in a contract it must be recalled that the agreement must be interpreted as a whole with the ordinary meaning the language throughout the country given to the words of the contract. (Citations omitted.) In Duquesne Truck Service v. Workman's Compensation Appeal Board, 165 Pa. Commw. 145 (1994), the Commonwealth Court stated: The existence of an employer-employee relationship is determined by considering several factors: control of the manner in which the work Is to be done; responsibility for result only; terms of agreement between the parties; nature of the work or occupation; skill required for performance; whether the one employed is engaged in a distinct occupation or business; which party supplies the tools; whether payment is by the time or by the job; whether the work is a part of the regular business of the employer; and the right of the employer to terminate the employment at any time. All these factors need not be present to determine the type of relationship and each fact will be considered within the context of the situation presented. Key elements are whether the alleged employer has the right to control the work to be done and the manner in which it Is performed, and the canying of an individual as an employee on company payroll records, as well as the deduction of income taxes and social security contributions from his or her earnings, the payment of unemployment compensation, and the Inclusion of an individual in workers' compensation and other insurance coverage held by the company are additional evidence of an employer- employee relationship. (Citations omitted.) Frank Deitch Is Deitch Pest Control despite the fact that his son filed some paperwork that started the company. We are satisfied that appellant was running the company, reaped all of the benefits, and was not controlled by his son in any way. In that capacity, appellant was engaging In direct business competition In a slmlIar relaiI -6- .... ,.. 97-14n EQUITY TERM business as plaintiff within the restricted geographical area as a msnager of Deitch Pest Control notwithstanding his title designation of an employee. Therefora, he was violating the restrictive covenant In paragraph XV of the parties' Ucense and Consulting Agreement. Pennsylvania Rule of Civil Procedure 1531(b) provides in pertinent part: Except when the plaintiff is the Commonwealth of Pennsylvania, a political subdivision or a department, board, commission, instrumentality or officer of the Commonwealth or of a political subdivision, a prelimil'\8lY or special injunction shall be granted only if (1) the plaintiff files a bond in an amount fixed and with security approved by the court, naming the Commonwealth as obligee, conditioned that if the injunction is dissolved because improperly granted . . . the plaintiff shall pay to any person injured all damages sustained by reason of granting the injunction and all legally taxable costs and fees, . . . In Goodies Olde Fashion Fudge v. Kulros, 408 Pa Super. 495 (1991), the trial court granted a prelimil'\8lY injunction on a covenant not to compete. The order provided that the injunction was "to take effect upon the plaintiff posting a bond in the sum of twenty thousand dollars . . . .' Plaintiff never posted the bond. Defendants filed a direct appeal within thirty days of the issuance of the prelimil'\8lY Injunction.' The Superior Court of Pennsylvania stated that '[T]he requirement of the bond exists for the speclflc purpose of protecting a defendant by supplying a fund to pay damages if [the injunction] Is granted erroneously.' The court stated that the injunction was self-executing upon posting of the bond. It concluded that if plaintiff 2. Pennsylvania Rule of Appellate Procedure 311 (8)(4), implementing the Judicial Code at 42 PaC.S. Section 5105(c). .7. ~ ,. 97.14n EQUITY TERM walts thlrty-one days to post the required bond: any timely appeal filed by the defendant would be quashed as Interlocutory, and any appeal filed after the posting of the bond could be quashed as untimely. This would, in effect, create a species of preliminary Injunction essentially unappealable to this Court. We decline to authorize this unwise practice. Therefore, we hold that the trial Judge should automatically fix a time within which bond must be posted by the injunction-seeking plaintiff. If no bond Is posted by the date set, the injunction will be automatically dissolved, and no appeal need be taken by the defendant. *** If Goodies is without the wherewithal to post the bond, they are unlikely to possess sufficient resources for any damages awarded if defendants comply with the order and the injunction is later determined to have issued in error. It is precisely this situation which the Rules mean to prevent by requiring the posting of a bond. Thus, we find that Goodies has not posted the bond according to the trial court's order and vacate the order at issue. Extrapolating the sentence from Goodies that states .Plf no bond is posted by the date set, the injunction will be automatically dissolved, and no appeal need be taken by defendant,. appellant herein maintains that the preliminary injunction dissolved when plaintiff did not file a $10,000 bond by May 5, 1997, ten days after the order of April 25, 1997, as required by paragraph 3 of the order. Therefore, appellant contends that the court errecIin permitting plaintiff to post the bond five days later on May 10. The statement relied upon by appellant in Goodl.s must be read In conjunction with the facts in the case which were that the plaintiff never costectB b2D!1. Thus, the defendant was left in the situation where any timely appeal would be quashed as interfocutolY, and any appeal filed after the posting the bond could be ..s- '" \, THIS IS VERY IMPORTANT STUFF! "., ,.- INFINITY PRINT GRAPHICS -.. Prlolllllll . 0tIphlc 0eIlgn . Advertillng Speclellln . Bu.... Fonne 19 West South Street · Carlisle, PA 17013 ~",. dI ~".",.,I Dale: 3. /7 -?7 To: I Orx. L Fy('""/~ Company: -1J~ /-/0.6 Hsf Fad: 510. SQ/1 From: /ra~ Phone:.ru:D 249-8542 t'UldJo/ Puf:J!!1)24'.7075 4 No. of Paaca: Comments: J.. {]hOl'Jed S~Ie. t.VO,df~9 (IYt 'tIlt:. /I1Sfde CrI 'Il..e hro~lt~ .,... add~ SCln~#,,,,~ - JUp. '11,,'5 1U45 .E!:! ~ A Iso J,d).) ve~' s 'f!./f'€r,e"Cl - I .st{e~d nt La. nAltK5 7Fac~ 1'1'1 . _ _ _ . . . . _ . ... ~ . . .. _ _ .. .. _ . . _ . . . _ . ... . .. . . . . . . . . . _ . . . . .. .. .. .. .. .. . w .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. -, r'" ., . Phond717) 2il.6889/ (717) '61.1320 ' 4J3Ponderosa Rd. . urhsle, PA 17013 SUBTERRANEAN TERMITE RETREATMENT WARRANTY Ownot , ....... ( ) c., I ItJlt lip Oodt D.~"', 01 SllIlcon(Il SIMCM --- c., ,- '-'CollI -" ,_.., Fee Dote __ LIMITED WARRANTY: The Company warranll1llat should any aetMt re.lnfestatlon in visible areas 01 the bullding(s) by SubCerranean Termites, Graphed Seperately, be diSCOVlrtd One (1) year Irom the date 01 Servlce or dale 01 Renewal, the Company will treat the relnlestallon; provided, however, the Company's Ilablfity hereunder sllan not e_CHd the Full COat 01 Retreatment. THIS LIMITED WARRANTY IS SUBJECT TO CONDITIONS LISTED ON THE REVERSE SIDE. NOTE: This limited warranty shan remain In lorce and tlIIy be renewed annuaUy Irom the service dati noted herein. provided that the Company visually reInapects the service area peri0dlcaiiy and provlded that the Ownet'IPurchaser (1) pays the Company the annual renewal ,". and (2) signa a renewal acknowI8dgement notice form. Fa/lure to do either by the am/versary 01 the service date aha" render null and ~ this Hmited warranty without privilege 01 reinStatement 8M attached 'Graph '0PTI0NAl Cloorw ,___ I- . 1- -- -- NOlle[ YOU tHE I'\"IllC;W<SEII.IoIAY CANCIl TIIS TIWItlACTlON AT "" T1UE 1'1I101I TO MIDNtQHT OF ~ THIRD .UllMER ~y AmR THE DA T! Of' ntlt TftANtACT1ON. lEI THE COHIlltlONS STAtED ON THE lACK n.' fiRMS ANO liiiiTA lIONS , OF THIS w/o.MMtl' .- ................................................... .........o............................o.......... ............ -- - ~ r". . , . , ,. - ... n:, ~ 3:: :n ~ ~ ). ~ ,...." ,...." ;:s ~ "'. ~ _. ~ .... ..... i ~ ~ ;Ir t'() t-I ~ ~ Z ""l .... ..... ~ - a- -. ~I "S! '" ::r ~ fi ... ~ ::J ~~ '" ~l"\ ~ ~ ~ ::.. /ii'+ l~ !l~ , , ... II . . ~Q -~ n I . B' W ~ C"\ !.!! ~ ......~ ~ f' ~~ ~ ~. l ~ ~. ~ ! w ll. a- ~ ~ ~ f;o !j .. t ... of ... l"\ ~ . - - t . . j, j, . .. , ~ iJ .-' b ." ~ Q & f f"'\~ ~ !!.i!; _ t\o C . . ~ ~. g, - - a. ~ n - -. :r .- ~ '" '< I>l a ~ t..J - 0'" :::> 00 .,,~ n: '< - _. fi" Q ~ o' ~ ~ 0 R = ... - ~ ... ~ '1:l ... n' 0 - a ~ ~ 6l . n Vl I>l a b' -. -5- ~ V1 3 Q. [ m' ii ;:s a a,n n n ~ I>l g. f~ O"'Q ] ~ 6- n ~ 0 Ao o ::I P. ~ a :U:. >< ... ~ :So ~ 0 ~. '1:l C) 0 i~ - a n ::s 6l n ii ::l ~ ~ 51 Ao I?. R D1 ! 3. ! '-' I n n ~ '0 . ~ a 5 [ Co ... I...l ii R '< ~ 0 "< ... _. ... pO. t..J Q ~ .j> - :: 0 ~ (""\ ;:so' . .. . . .. , .... . - !l. :i' ~.~ ~ ~ i s ~ n > ~. i 0'1:l ~ s-g. 8 I ::S'1:l ~ ~~ .. n ii ~. < 0 i~ ~ 0 n _. n _. ~ iig .. n 2. ::l ~i c ::I g S n .. 51 i ., a ::l 8 ~ 1,; D~ n n 0 ~sr ~- n = = ~ 19 Iii _. 0 51 .. 11 [ Gl ~ 8.~ o. n ; ~. ~ ft~ (1Q pO. :r 0' ~ It It -~ 8' g n 3 ~ ~ft Q. ., ~ .. 3-'0 C i .s 0 trl .8 ;:r ""'" ~ a- _. rts: 0. V'l -8. { 1 0' 8 _. !!os. ... ~ ~ .. V) s -i 2- c:: Q ... ., III :: ~ ~ ~ J '""" (""\ Q Sf:' i = ~ to > ~ ~ r") f -. I 5. r I ~ ! ;r ;; ; ~ ~ .f f i ~ r c :J. ~ f. "< - . "< = - f g. ~ - ~ . . €- 1 :01 .:66 TILT IC" ''/2 .. , 1 Form 1065 """ ,....., u.S. Partnership Return of Income OMB No_ 1S4!i.()Q99 o.,artmlnt of '" l....uy lnttmll Rrt...,. S.,-.ne, A Pnnc." BuIinn. AclMty For tilt.." ,...,m. or lu ,... ..,10010' . IH5. a.odlo, . Sit llparatalnllNcllonl. 1995 .It ........P- o r.,I.,,, ID ......., UIOthO EXTERMINATION ~. DEITCH BROTHERS PEST CONTROL SERVICES B Pnnc..PnMb:IOl'SeMc' pI.IU" .......S"........AoomorIutlHo.(".P.O..........lNcbont.-) PEST CONTROL Pri~ 433 PONDEROSA RO. C Buaw."Codt........ or.,........ City.TIMn ,.... zwtCoctt F ToIIIA'''''(&H",,~ 7299 CARLISLE PA 17013 S G Ched< epphcebla boxes: (1) X I..bol re"'n (2) X F lnal rall.m (3) Chqa In addrell (4) Amended reun H Ched< BCCOUltlng melhod: (1) X Cesh (2) Accrual (3) Olher (speCIfy) . · _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I Numbtr01 SchoduItsK.I.A1lJch...foruchporlOl\ollowu.porlner1I..'lllllld.lI11glhelu.... .. 2 Caution: Include only 'rllde 01 bu........ "",orne and expense. on I...... la Ihrough 22 belOw See 'he ",.lruellOll. fOI more .,fOImallOll 2S-17842S7 E 00.._1_ 01/01/95 I 0 GrOll rece'Pts 01 IOles . . blesl r."'no and allowances . 10 lb 61. 848. 9S. lc 61 753. I N C o II E ............. 2 J 8 96S. 52 788. 2 COil 01 goodIlOld (Schecl.Jlo A. hne 8) . . . . . J GrOll Pfohl. SlblrBCt hno 2 from hno lc . 4 ~ InComO (l01I) from olher p.tnershlpS, e.tate., and trusts ........................ ............. 5 Net ,..... prolit (loll) (attach Schedule F (Form 1040)) ..... , Net ga>n (loss) tom Form 4797, P.III. hno 20 " 5 , 7 O1her Rome (loll) . 7 I T otaIlncomo I . Combno lnol 3 Ihr 7 .. 52 788. .... ........ I I E E , 10 11 12 " 14 15 2297, 116. , SoI.iel and WOOO. (oil. than 10 pa'tnerl) ~ell employment credits) . . . I 10 Guarantelld P8)'lTlents to pamer. . . . . . o I 11 Repairl and mOirltenanc. . . . .. ... E I 12 Bllddebts. ......... o u U C " Ron!................... , C I 14 Tax.. and lieensol ... T ~ 15 Interost ............. ................ I I o 110 OeprllCia!lon (I' r~od, attach Form 4562) ............ ~ ~ b la.. deprocia!lon reportod on Scho<Ua A & _. on rall.m . . . . · 17 OepIebon (00 not ddIct 011 and... dopWlon.) . \ II Rat...mont plans, ate .. . I 11 EmpIoyea benehl prog8m1 . , . , I o . . 34 219. 76. 110 lib 1 021. lIc 17 11 11 1 021. 20 Other deOJCbonI (attach ""_Ie) .5.. Other deGJcbonI 20 22 772. 21 T olal doducItons. Add ... .,,0lIl\S SIlo..... n ... ,. t counn 'or hnol 911v 20 21 60 501. Z2 __ trcm Ira or blanoll ac\Ivobu 5lb~BCllne 2\ tom hno I ~_.._.,_....,-_..._--......-.... w....,............, it".._ .."... ...........- ~.,,.....,., ~ '*"...... ............. II ................." ~,...................... .' .. PUlii~ll' . .. '0 a.,.. d -7 713. Pl.... Slg" He,. .. .. P.d p,.~'. u.. Only -. - .., ,............. l:r"' .. ::=.. PA 10' . 23-2440465 "..... . 17013 form 1015 (1995) ''''AGHf ItltJM '""" Form 1065 1995 DE ITCH BROTHERS Pl. CONTROL SERVICES l ~. A> I COlt of Goodl Sold 1 InvenloryafbeglmongOlyear ......... ........... .............. 1 2 Purchase. Ie.. eO.1 or Item. Wlthdrewn lor personal use. .................. 2 8 96S. J CO.IOllabor................................ ......... ........... .................. J 4 Addllion.IItCIt."Z6JAcolh........................... ........... ............ .............. .............. 4 5 Other eosla......... .........,............... .,....,.."..............,..,. ....... ................... 5 ' Tolal.Add Itnes Ithroug,5 ............... ....... .................................................., 8 965. 7 Invanfory alend olyaar ............... ..... ............... .... ......... ................. ................. 7 a CosllOl gooduold. SIAl~acl Itne 7 ~om Itne 6. Enter hare and on page I. Itne 2 ...................... a 8 96 S . II Check all methods used lor valuing elollng Invanfory: (I) ~ Cost as describad In Regulahons Helton 1.471.3 (II) lo_ 01 cosl 01 mark,l as dtscribed n Regutaltons .aebon 1.471.4 (III) OtIw(IpICI'Jmtt/IodulIlfMdsllJclllJlllwt...)........... - - - -- - --- - -- - - -- --- - - - -- - - - - - -i - -- b Check th,. box II thare w,s a ...lte,down 01 '1lAlnor. mal' good. a.s descr,bed on Regutabons seellon. .1.47I,2(e)............ c Check thIS box If thellFO invenlory method was adopled th,. fax year lor any goods (If checked. enllCh Form 970) . . . . . . .. ... d Do th, rules of section 263A (lor property prOWced or acquwed lor resale) apply to the partnership? ............, "" B Yes X No a We. there ony cl1JW>ge in dtlerminong lJJanhties. co.l or valuetions batween Opening and cIosong onvantory? ..,........ Yes X No I' 'ves', attach explM8tion. ,..... 25-1784257 l$cMdul. B.',. ., Oth.r Informallon 1 Whel I)pa of entity IS hlong thIS return? Check the IlppllCabIa box. 1RI Gonerll partnership 2 Are ony partners in thIS partnership IIso parlnarshlpsl o l.lllted partnershIp 0 lonlfed Itabll,ty eornpony .......... .."......,. ..........." ........... Pa e 2 Yes No X X X X X x 110U X 3 Is thIS Plrlnarshlp I Plrlnar in another Plrlnarshlpl . . . . . . , , . . . . . . .. , 4 Is thIS parlnarship ~ecl 10 thl consolidated audil prOCOllJres of HclJons 6221 through 62331 II 'Ye.: sea Dnlgnaaon of To IIaItart PIt1neo' below.....................,........,........... '.. ............ ...................,......,... 5 Ooes thIS Plrlnarshlp mllf All TIvH 01 the lollowong reqwemenls? a Thl partnershlp's Iolal reclipls lor the tax yaar _e less than $250.000: b The P......ship.s Iolal ....IS II th, end 01 the lax yaar _e less than S6OO.ooo; And e Scl1ecUes K.larl hied WIth the return and fImoShed 10 the parlners on or bafore the c1Je dale (oncIudIng axtlf'llions) lor the parlnership reUn. II'Ves: III p......ship is nol r"""ed 10 compI,le Scl1acUn l. 1.4.1, and 1.4.2; Item F on page I 01 Form 1065; or Item JonSchacUI K.I .....,. ..................,.......................... . .'......., . ............. ......." , Doe. thl. parlnarship hlw ony loreJgn par....s? 7 Is thIS Plrhrshlp I JlIbIICfy Iraded Plrhrship IS dehned '" section 469(\<)(2)1 . .............,..............."........ X ~ \00, . . . . . . . . . . . . . . . . . . , . . . . . · Ha. th,. partnarlhip Idad, or is ~ reqwed 10 hie. F_lI2IC. AI>PIocatlon for R.lration of I Tax Sheltarl . "" . · At any tima cU"'Il cIIandar yaar 1995. did the parlnershlp havt Ir1 "'....t '" or I IV'IUI 01 olhar 1UIlarIt)'- I Ionai'1dIlIlCCOur1\ '" I for'9' tourIIry (SUcl1 as I '*'" IICCOur1\ neun"s llCCCU\t, or Olhar IIn8r1cIaIlCCGulOl (5" the '"""""lIOns lor IXCtptlQns _ hIlng r"""tmInIS lor Form TO F llO.22.1.) " 'Yes: enter III _ of the lor'9' e~ . .. ------------------------------------------------ 10 WIS III ~ III grantor or. 011<__ 10, I for'9' 1rust fhet e_ cUlMg the _ laJr.llttr """lhar or not III par~ 01 ony p... has ony bone""'.. ,",erl" '" It? II 'Y..: you may Ita.. 10 hie Forms~. ,M.A, or lI2I...... 11 Was """.1 dl.1rtIuIJon 01 ~ or I "1rlIhlr (I.., .... or death) all parhI!!h'P InlarIS\ lUi1g III \ex)'fa'l II 'Yas: you may tItct 10 "*"" III basts or", par '. _IS ur1der sacIJon 7S4 by I\lac:hlno iii sill" \1004 dascrlbad '" '" ""N:lIona ur1der bedlene ... ...... . ...... ... ... 1ft. on 0' U .ra IItner Enter below '" gener.. parhw clttIIgwad IS the lax mallars p... (T~ IIlr III lax year alllOS rakm: ~0I ~~q DeIl\J"a/ldTl.f> ~ FRANK J. DEITCH ~alTt.f>~ 193-]6-3921 Adlhss or ~ 43] PONDEROSA RD,. DaSl9'\llId Tt.f> CARL J SlE ". 'fltAOII, ,,,,,.... \ F'-l111065 !l995l DEITCH BROTH~ PEST CONTROL SERVICES I Schedule K .... . I Partners' Shares 01 Income Credits. Deductions etc ~ 25-1784257 Paga 5 Incom. (lOSI) DecIuc:. tiOlll lnv..\. menl 1n1....1 Cledlll Sell- Employ. ment Adjusl. mentl endT.. Prefer. enc. Komi r.....gn TOll.. Olhw ANIyM (I) Dlltrtbullvllh.rlltlml 1 Ordinary Incoma (loss) from ~ada or buSlnass aCllvlllas (paga 1. hna 22) . . . .. ........ ........ 1 2 Nallncoma 0055) ITom rantal raal astala aChVlllas (a"ach FOtm 882T5). .. " ... ....... ..... ... 2 51 Gro.. lnComa from othar rental aCh",has .............. ......... 511,\X:'i:? I ~I""";;' b Expenses ITom other rantal aChvllias (a"ach schadule) . . . . . . . . . , . . 5b, .. . .' c Nallncoma 0055) ITom othar rental acllVlhas. Sub~acl hna 3b ITom hne 3a ..... ......... ....' 5c 4 Portfolio ineoma (loss): .Inl-,ast ineoma.................... ............................. 41 bOlvldend ineoma........................................... ................................. 4b c Royally ineoma ....................................................................... ....... 4c d Net short.lerm capital gain 00") (a"aeh Schedule D (Form f065)) . . . . . . . . . . . .. ..... ......... 4d . Net long.term capital gain 00") (a"aeh Schedule D (Form 1065)).............................. 41 I Other portfoho lnCOtna 00") (a"~h Ichedule). ............... ..... ....................... 41 5 Guaranteed paymants loparlners .................... ............. . ......................... 5 6 Not IlIIft (loss) ulld. IICtion 1231 (.1hIr lIwl due 10 CIIuIl1I or thell)(lllI<hr.... .191) ........ .. ............ 6 7 Otherineomano..l............................................. ........ . ... ... ....... 7 8 Chal'ltabla contributions (a"~h schedule).. .. . .. ... ......... ... .. .. . .. 8 . SICbon 179 axpanse dac1Jclion (a"adl Form 4562)..... ...................,............ · 10 OtclJchons ralated to portfohO lnCOtna (ItamiZa) ........ ..... .... ... ....................... 10 11 Otherd.clJctiOnS ................................. ....... ............ .... ............ 11 1211nIarnl."".nsaonlnva.""entd.bts ...... ....... .. .... .. .. ........... 12a b(l) Invas"".nl inCom.lr1CIudad on hne. 411. 4b..\c. and4f Ibova .................... 12bOl f2l Invas"".nl."".nsa. InCIudad on hne 10 above . . .. ... . . . . . . . . . . . .. 12b f2l U.low.lnCom. housJng cr.dll: . : (1) f,om partnlrshlp'lo *" seeh.. 42(JX5) apphator _II pil<ld 1ft ...... bIIors liIW ... . .. .... ... 13. Ol (2) Other than on I"'" 13a(l) lor properly pl~ed n .al'V1ca b.lora 1900 . . .. . . . . . . . . . . . . . 13. f2l (31 from partnlrshlp.lo_sact... 42(JX5)app"..tor_lIpil<ld ........."" 1989 ................... Ua rt\ (4) Other than on line 13a(3) lor properly placed'" servo:. alter 1989. . . . .. . . . . . . . . .. ......... Ua'''' bau.ldlld'...."iIJl""'~ltura....IedIo...IJI...I..lIl..:I"'llIS(l1II<hr....J46I') .... ........ .. ..... Ub c Crodll.(.IhIrIlllll..odlls_..hnalla....,lb)'oIIledlol..lllrul..lItIICINlllIS ................. 130 d Cladlts r.lated to other rental aclMh.. .. .... ....... .. . Ud 14 Otharcr.dlts.. ....................... .... ......... ......... 14 151 NaI.lmlf1gS 00") ITom ..If.employmant.. .. ......... ... . .... ...... ...... .......... 151 b Gro,,'armJng or hshJnglnCOtn. .. .... ......... .. ... ..' .. .......... ................... 15b oGro..nonlarmlnCOm....... ........ ....... ....... ....... ............ ......... ... ISo 161 Oapraaation adjuslmenl on properly placed '" service aner 1986 . . . . . . . . .. .., ......... 161 bAdjusted gan or Iou ............ ... ..... ....... ..... ........... ......... 16b o Otpt.1ron (other than 011 and gas) .. . . . . 160 d (1) Gro.. incom. ITom oil. gas. and geothermal properties .. .. ..' ..... .. .... ......... 16d m (2) OtQJctions a1locab1a to 011. gas. and geothermal properbes . .., .... ... .. .... ..... 16d '" .Olhor"""'''ltuortlitem, ........... ........... ..... ....... .......... 161 17.1J1111ol_....... _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___ _ ___ _____ ____ __ _ ,,;;,;It~ b For.1\1' ~ or U.S. possasllOll . . · &~j _ _ _ _ _ _ __ __ _ _ _ _ _ ____ ___ ___ ~~~.,'t:- o TotallP'oU InCOm.ITom SlUcas oulstdI1he Urxled Stat.. (a_ seIIedule).... ........ 170 d Total appllc_ da<U:tiOnS and 10.... (an.ch schedule) . 17d . Totallor.1\1' tax.. (check one):. lJ PIId lJ Accrued ..... .. ........ 17. 1 Rawclron n ..... .V1IIIab1a lor cradlt (a_ ._le) . . . . .. ...... ....... 171 It Otler lor"'" ... ,"Iorm.1ron (a_ schedule' .. ... .... ........ 178 18 Scbao59(.Xll--'''..... .1J111 · _ _ _ _ __ _____ __ _ _ _ _____ b_I..' 18. I' T...._IInter..t incom.. ........ .......... 1. 20 O\har "'"x""1>1 ncome ..' ....... 20 21 NondaclJcbbl. ._" :n 22 O'S__OllIoImonty(CllShandmtrt<._............) ...... ...... .,. ,.."... 22 21 o..tlbultonS 01 property other t.., money ..... ....... ....... ...,.. ..~2J 090. 24 oa.......'''''''-Itlll--It-. ..... ..... . . ..'" b':'.--~...'....,.......,_...__,..._......-,_,'"&l. :.:.::.:: 25. 2' 66. Q.'"' (lI)Corpor.te MIndI_ (c)P.,,",~ ME... (t)Nomht/CltlaI rJ;' I Acbve H P...... ~ t:::: 26 366. "- 'fPAlUl OtA.. (h) Tola' amounl -7 713. 34 219. 140. 26 506. 52 788. 321. 1H. FOri]' 1065(1995) OEITCH BROTHERS .....T CONTROL SERVICES ,...., 25-1784257 \ Nott: If Ouesllon 5 of Schedule B i. an.wered 'es. . the PlJrtner5h,p 15 nol reqUffed '0 complete Schedule. L. M, f. and 1.1.2 I Schedule L ......., Bllance Sheels P.O' 4 Seo'mlnO all.. y.... (.) (b) End 01 t.. y.... (e) (eI) A...tl 1 C.sh ........... ......... .... ..... .. ... .... 2. Tr.d. nol.. end .CCDUlts r.c.ivabl. .. bless .1I0wenc.lorbadd.bts."............. 3 Inventor,a. ................................. 4 U.S. Q<)verll11ant oblig.Uons................. 5 T......mpl..CU"ti...................,...., 6 0'* currM\t......(IIIf.Itadl) .................... 7 MortOll\la endreal..tal.lo..........,.... .... 8 Other investments (IU'ch.l<h}..................... 91 Bu,ldlllg' end 01l11lf depreciabl. llS5ats . . . . . . . b L... accunulaled depr.ciation. ............ 10. O.pl.tabl......ts ....... ..... . ............. b L... accumulaled depl.tion . .. .. .. .. .. .. .. .. 11 Lend (net 0' arlY amortiZation) ............... 12. Intanglbl. llS5.ts (amorbzabla only)..... b L... ecamulal.d amortillbon . . . 13 0",", IIHlI (lf1Ic/lschedllle) .. 14 Totll a"'II. ............ UIblUU.. end CIpiIII 15 ACCDUlts payable. . . . . . 16 Mol,- nota. bond. popUlo" les.lllIlIl JUI . 17 0tIl0r CIlI,..II...10111S (lUl<II .l<h) . . 18 All nonr.cOU'se 10..... . . . . . . l' MorIQIQIS. nota. bond. popUlo " I " " mare ZO OtIlorlilb,IoIIlS(If1Ic/l""'ale}. 21 Per1nef.' CapItal acco<.nts .... .. .. .. .. O. Z2 To'lI liab'lob.. end c 'Ial. 0 . I Scheclul. ..' 'j Reconciliation ollnc_ (lou) per Books With Income (loss) per Return ('H inllrucbons) 1 Net lnCom. ~o..) per books .. -7 968. 2 Income ""_ on SctolNIo II. 1_ 11IrouQtI 1.6. & 1.1lOt recorded on boots 1101 JUI (ill.nll~ :...:.~...,',,':.;.,:.~~,;~,~..W.X:1.:":..;'.' .,".:..;:<:,.:,;., :~; ';"";.:/>:'" o. O. & Inc.... ,_dtd on booIl, II1lI ... no' ""_ on ScltCulo II. 1_ 11houQh 1 ('....IZI~ .11ll'~"""t. . $___________ 3 Guerarll.ad payments (olher lI1arl htlllll1 insurance) . . 4 Expanse. racordad on books Ihts ya.. not InCluded on SchlKUa K, '"'" I Ih<\lUl1112.. 17.. Ir1d 1811 ~tlmlZl): . OIIwICIIt..... $_ _ _ _ _ _ _ _ _ _ _ __ bl'M111l4 .._I. $__________11}~ 34 219. 7 DeWctlons nctudad on Scht<Ua K, lone. 1 1h<\lUl1112a. 17., end 1811, not clUlrgad llQaonsI booI< ncome illS ya.. (ItamlZe): . DeprecIation...... $_ _ _ _ _ _ _ _ _ __ . Add lone. 6 Ir1d 7 . ................. , Incoma (10$1) (Sche<klIe K, lone 258). SlAllract 1one81rom lone 5. ............. ____________________ 115. 5 Addbne.11lY 4. 26 366. t ~"']IIJ Anllysls 01 P,dners' Capital Accounts 1 Selane.., begow1g 01 ye. . O. & 2 CIIP't.. cont-.s ung ye.. . 13 057. 3 Net lnCOITIe (Iou) par _ - 7 968. 1 ~ OtIlor_(MIlI): __________ 26 366. Ol$lllbutoona: . Cesh ., ~ "'operty 0tIl0r_(_~ 5 090. --------------------- -------------------- ~~~~_~tl~~__________ 1. --------------------- 5 Add Ionel I IIY . Add """ 6 Ir1d 7 o O. , 8.I""UI IIl4 el . S,,"IC' "'" Ik.. """' . 5 090 o 4 PIPAOI)4 1211 tItS . \ Form 4562 """ ,....., .Jepreciation and Amortization (Inducing Inlonnllion on U.ted Property) . Attach thl. form 10 your ..lum. 1995 67 -- 25-1784257 OMII No 15<14172 Otpartm.nl of "'lr'~ ~~s.M:. (99) "-"'t(.) Shown on A,,,,,, 8YltnHi or AcWtty kl Vlhch TMfarm R./a," BROTHERS PEST CONTROL SERVICES Form 1065 Line 22 Election to Expen.e Certlln Tlnglble Property (Seclion 179) Noll: " have an t..,ect PI r. . c 10'0 ParI V beforo c 1010 ParI I 1 MaxnnuTl doll.. lomltabon. II an enterpri.e zone bus","SS. ..a It1Sbucbon.. 2 Total co.t of .acbon 179 properly placed", .0000ce cUlflO the tax ye.. ... ! Threshold co.t of lechon 179 properly before reclJcbon in lomitabon. ......... 4 R.clJcbon lfllim,labon. Slbbact IN 3 from IN 2. II zero or I.... .nter .0. . 1 S17 500 2 ! S200 000 4 5 Doll.. lomltabon lor tax y.... Slbtract I"," 4 from line 1. II zero or I.... .nler .0.. II m.."ed I,llflO 50 ..at.1 ...e IOStrucbons. . . . . . . . . . . . & I D.ler bon 01 Co.t 5 c EI.ct.d COil , -. '" ~, Ctht{(~~:~~#t.~..4'~\h~'4 7 Ulted property. Enter ~I from IN 27 .......... .......................... 7 8 Total elacted cost ollechon 179 properly. Add IInOlOlts"' column (c). IN' 6 and 7 . T entab.. deo..chon. Enter the smaller 011"," 5 or line 8 ,.. . . . . . . . . . . . 10 Ctwryo_ 01 dI.allowed doOXhon from 1994 . .. .. . . . .. . . .. . . .. . . . ... ........... 11 To.llble lnCOITIe I....tahon. Enter the smaller 01 taxable InCome (nolle.. than zero) or IN 5 . 12 Secbon 179 expense deo..cbon. Add linel 9 and 10, bul do nol enler more th....line 11 . 13 C.. "'" 01 disallowed rle<1Jcbon 10 1996. Add line. 9 and 10. Ie.. IN 12 . . .. 13 Nolo: Do no/ u.e Pari II 01 Patl /11 below for //slect property (au/omobllo.. cer!ain other .e/l1CIe.. col,""" 101ephoneJ. cerlan """",larS. 01 property u.ect for enlornmrnent rocroa//Ofl. 01 amu.emenl) lnJ/oad. u.o ParI V lor hslect property Iplrt n . I MACRS DepNdltlon lor A..ets P1lcld 1'1 Slrvlel Only During Your 1995 Tu Via, (00 Nollnctude Lisled P~) 8 . 10 11 12 SocIIon A - Gonorol A'HI Accounl Eloctlon 14 lOon 5 1513. b5. c 7. d 10. e" I 15- .. 120. .. II Ro..denbal rantat property h Norn_bll real property 3 412.5.0 rs HY 2 041. 7.0 rs HY 470. 10.0 rs HY 682. 292 47. 27.5 rs /VI 27.5 rs IVI 39 r5 IVI /VI SecIIon C - AltamaU.. S S SIl S/L S/l Il 12 40 Il S/l S/l 1 h CIa" hie bl2 .. c 40. .. Part Other De N I on NalIncludo Uslocl 17 GDS and ADS doOXbons lor ....ts placed n ._" "' tax ye... ba9'...g belorl 1995 . . . . . . . ... .... 11 1. Propotty 1IIJtecl'1 HCloon 168(1)(1) elechon ......... .... 11 1. ACAS and oll>ef ICllhon ,. Irt Summl 2G L..,ed propotty. Enter amO\I11 "om Ilne 26 ..."....... . 21 Tolal. Add do<U:bons en "'" 12. I""s 15 and 16 n coUnn (!II. and """ 17""""" 20. E:nlor ~ and en I,. _Op,,"tl linel 01 yfXJf return. P.._ShIpS ar>d'S CQr1lOfabanl- -...--. . r5 rs "" 11 U For asHIs Sho.... IboYe and plKed In _" 0..'"0 '" curonl ,... - II. toon or II. ball, olUlUIabll 10 Itchon 263A cOils BM For I'aporwOlll RoduclIon Act NoIkI, -....- u r__tltllQ 'OIlO11' 110019I Form '4562 ~preciation and Amortization "..... (Including Inlonnalion on Usted Property) . Alllch thIllonn 10 your ..Ium. 1995 67 _ No. 1S454112 o.,lfhent 0' h r,..a.ury Inte1Ml AtvltnUe SeMet (99) NWM(l) ShcMn on At"'" BYwon, or AcIMty to W\ch 1M Form Rtta... -...- 25-1784257 BROTHERS PEST CONTROL SERVICES Form 1065 Line 22 E1eclion to Expen.e Certain Tangible Property (Section 179) Otl: If have an llSled Pr '. . c ""e PI/I V before c 1ele Pa,,1 1 Maxun..." dollar limltabon. If an ent.rprls. zona bUs'ness. .e. ons~ucllons. 1 2 T olal cost or secbon 179 property placed.. .....c. cuong Ill. tax yoar .... ................ ................ 2 3 Thr.shold cost or ..cbon 179 prop.rty belor. rec1Jcbon .. lunltabon ...... ................................. 3 4 R.wcl,on '" IImllation. SlJb~act line 3 ~om lone 2. If zero or less. .nler .0. ............................... 4 $17,500 S200 000 5 6 5 c Elected cost 7 Listed property. Enter ~OU"It from line 27. . . . . .. . . . .. .. . .. . . . .. .........."... 7 ~~\~\:~W~$t'ti-;itii,,:'~; I Total .I.cted co.t or secbon 179 property. Add am"'-'lts '" coh.mn (c), lones 6 and 7 ....... ................. I , Tentab\/O doc1Jcbon. Enter Ill. smaller 011010 50r lineS.... ......... . .............. .... ........... , 10 Carryover or disallowed doc1Jcbon ~om 1994 .. .. . .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . ... .............. 10 11 Taxabl. >neom. IImltabon. Ent.r lIla smaller or taxabl. tneom. (not le..lIlan zero) or line 5. 11 12 S.cbon 179 .xpens. doc1Jcbon. Add lones 9 and 10, but do not enter mor. Ihan I... 11 12 13 C verordlsallowoddoc1Jcbon to 1996. Add lones9 and 10 less I... 12 . ..... 13 "',"""c,".,.,, Notl: Do nol use ParI 1/ or ParI 111 below"" /lSled property (automobiles. ceria", other ~ICIeS. cellular lelephOMs. cerf/lJfl COIIllUlers. or property USed Ibr ."te,lannenl recreallOn. or amusemenl) /nslelCl. use Part V Ibr holed property IPart n I MACRS Depredation lor As.ets Placed In Service Only During Your 1995 Tax Year (Do NoIlnc1ude I.h\ed "'-!Y) SectIon A - Genoral A...I Accounl El_ 14 (g) 0.,.-00.. -- 1513. ar b5. or c 7.ye. pt' 8f d 10. ear . 15. .ar 120 or g R",,'enbal rental property. h Nor"'Sldenllal r.al properly 3 412. 5.0 rs HY 2 041.7.0 rs HY 470,10.0 rs IlY 200DB 200DB 200DB 27.5 27.5 39 Sec\lon C - Altemallvl MM t1I1 t1I1 till lotion S $I.... ADS SIL SIl SIl S/l rs rs rs 11M S/l S/l SIL 12 rs 40 rs her De a on Not b:Iudo UstocI 17 GOS and ADS docU:\Ions lOr _Is pIacod .. SOMee n tax yon beg.,. '\l boloro 1995 . II Prope<ly Il.Cljecllo HcI10n 168(1)(1) e_ II ACRS and .... IClIbon . art 20 lIsted propotly. Enll< _ Itom 1onI215 . 21 ToIII. Add dI<lJcloonl on Ins 12. tnn 15 and 1~ n coUnn (!II. and.... 17 ~ 20. Enter hof. and on lie IPP'"",..II- 01 you..un. P.....s/llpI and~ c,"pcllIbolll - _ ~ . . 2Z For ....Is """'" 11>0\/0 and pIacod WI HMCe ~ lie CUTent year. enIIr Ihe of lie beSts _10 _ 2l53A tolls Z2 BAA For .._..... RIducIt... Act Nottee, _ 1ns1Nc_ 17 II 11 20 Z1 Form 45&2 (1995) rotlQtl' 11RM1 682. 292. 47. Schedule K-1 , (Fonn 1065) OepattrNnl of !he T,..1lIf)' lnt.mal R.....,.,. S~. Plrtnlr'lldlntlfylng numbtr. Plttntf',~, AckIrn',1Nf 1JP Code Partner's 1"\e of Income, Credits, Deductio('lEtc. For eoltndtrYIt, 1995 orltxYI.. beginning 1995,I",lIndln ,19 Plrtnl,.hl '1ldlnlllylng numb.. . 1 PartMrshlp', Ntnw. Mdr..,. and l)P Code ClMB No. 'S45.QD99 193-36-3921 Partner No: 1995 25-1784257 FRANK J. DE ITCH 433 PONDER05A RD. DEITCH 8ROTHER5 PEST CONTROL SERVICES CARLISLE PA 1701 A ThIS portner II I X glntrll portner IImlled partner r] hmllld lillbllify eompony member B Whll typl 01 Inbly .. Itlll portner7 ... .. J ncH)'.! qUjlJ _ _ _ _ _ C II thIS portner I 00 domelbe or a 0 loraign portner7 D Enl. PIli..'. % 01: (I) ':l:~,_~ (II) ~.. ProJllshlnno... __________'' _____~O_'QQ.O.9" LO..shor'"llnnnnu" _uu~O_'QQ.O.9" Own,nlupof-.III __ u u u _ _" un _~O_,QQ.O.9" E IRSClnlufle.. ..sill llledrelum: PHIL PA 19255 433 PONDEROSA RD. CARLISLE PA 17013 F Partner's share of liabilities: NarY.co.... . . S QJallfled norvecOU'se fnancmg, . . .. . S = = : = = = = = = = = Oth.r ................... .... S________!~O_, G Tox shaller r.o'strat,on nu:nb.r .. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ H Ch.ck h.r. I' thiS porlntrshlp IS I P\.Clllcl}t troded portnershlp "' d.flned In s.cbon 469(1<)(2) ...... ....,.0 J AnaIYSiI oIlt11tner's eaaltoJ account: (I) CepllallCCOU'II It (b) C':tlal contrlbut.d (e)Portn.r's share 01 (d) Wlthdrlwals end (I) C1:IlIIICCOU1t It end 01 beglmln\l 01 'JIll '"ll 'JIll ,....3.4. end 7, distributions 'JIll combine colllnns (I) Form 1065 SchOWl. M 2 thrOlJl1l (d)) O. 6 529. - 3 984. 2 545. O. (I) Dlslributlve shin II... (b) Amount (c) 1040 iii.... Intor the Imount In column (b) on: 1 Ordontry oncome (loss) from trode or buslness ec1IVlbe. ..... 1 -3 857. 2 Net income (loss) from rlntel reel e.tatl ecbVlbe. . .. ..... 2 See P..,. InslrucllOllS for , Net income (loss) trom other rentalllCtMbes . ...... "'"'''' , i- Schedule K.1(FOl11l 1065). 4 PortfolIO income (1oss): I" .. Incoms I Interesl ... ... .... .. .. .. .. ..... .".. 4a SchecUe e, Pert I. line I (loss) bOiVldonds.. .......... .... ..' ... 4b SchOWle e. Pert II, hne 5 eRoyafbes .......... ...... .. ... ..... ... ....... '.. .. 4e Sche<Ue E, Pert I. line 4 d Net short.term eepltal glln (loss) ... ...... ... .. 4d Schedule 0. "'" ~ column (I)" (g) I Net Iong.term CIpltal gatn (loss) . . ....... .. ..... <- 4s Schedule O. "'" 13, column (I)" (g) I Other portfolio >nc:oml (1oss) (al,..", .medule) . .,.......... 41 En. '" ~ 10 of)OUl retum 5 Gu.onteld paymenls to pwtner .... .. . . . . . . . . . . . 5 19 293. See Patnsr', Io.IruclNlll. for , He! 0IlII (Iou) undsr _ IllI (00. INn duo III CISlIIIIy" 11l"l) ......... , Schedule K.I (FOl11l IlI6S~ 7 OllI_lloulflll It.\) . . . . . . . . . . . 7 [ft......,.....1e In of """...... . Chllll_ contnbubons (a/fac/J SChedule). . , . 70. SchOWlI A. I... 15 or 16 Doduc- t SlCbon 179 expense de<U:bon . . ... , lions 10 Oe<b:bons related to portfolIO income (at""" schedule).. 10 See ,..... InllrucllOllS lor ScMduIe K.' (fOl11l ll16S). 11 ou.r _.... filiI<. ,,__I. 11 Immt- 12a Intersll exper... on _Slment _Is 12a Farm 4952. I... 1 mant b(1)"____......lb.lc,axt4'_ . b(ll See P...... 1n.IruclNlll. lor Int_t (2) lnve.lMant """"""'S lnCludId on I... 10 _VI b(2) ScIloduloK.l(fOl11llll6S).. UI Low income housing credit: . $so ,...., 1n.lrucllOllS lor (1) From _ q(j)(5) par~ for pr_ty placid '" ScMduIe K.l (F.... Il16S) unoce beforl 1990 . . .. . ". .. . . ... . . am (2) oa....... "'" 130(1) for plGpOrlJ placid.. __ boIlr.l9!ll sm .'c' - Farm 85ll6. hne 5 CnldIh (5) From _ ~(5) ~ lor ~ly p11Ced '" S(5) StMCe _ 1989 " .. ". . ...... . (4) ou.r...... "'" 13o(!lr. plGpOrlJ placid .. ..... oller I. al41 It Q,abflld r~tallon SJll)lndolUrtl ,tblted to rental raal ...... a.1alt act...... . Ub e Credits (0'* lion crl!dlls shown on ,,",,1130 end 1.lb) $so Por1oor'1 "'-- too r_ to rental rail ilia.. aclrdt1as Uc - Sc!lodllIIK.} (f_11lIn d CrIdIts relatsd to 0'* rental acll_s Ud 14 Other crIdIts ~ I Check "cllble boxes: Amended K.) BAA For'",""", ~Act NtIka. _lftSlM:tlOl'" lor r_ lOU. Scn.cUt 1(.1 (form 1065) 1995 'fPM,llJ HrU.'" Sche~le K.l (Form 1065) 1995 1 - 6- 1 P""e2 (I) DlstributlvllhI.. 111m (b)Amoun\ (c) 1040 ml..IIlII' the llTloun\ In column (b) on: 5111. 151 Nel earnlfllls Qoss) Irom sell.emplo)""enl ........ ... ...... IS, 15 436. Sehldule S[, Sect... A or B ,mpl:r- b Gross larmong or Ilshlfllllncome . . . . . . . . . . . .................... 15b J- See Parlner'.In.kuchon. for men c Gross nonfarm InCome.....,..............,. 15c 26 394. Sehodul. K.I (Form 1l~5). .. .. .... Ad)"'I- lh Oel>rOCllhon "",".lmenl on plopor1y placed III WtlCt In" 1986 . . . . . . . . . . . . lh 161. menls bAdJUSledglln or lOll ... ......... ............... ............ .. lib See Par1ne,'s Incl c Deplebon (other then 011 end glS) .................. ........ ... lie Inslructions lor Tex d (1) Gross oncome Irom 001, glS. end geothermal properbes dill Schec1lle K.I (Form P..I. .... .. 1065) end ins1lucbans ......1 (2) Deducbons etloclble 10 all, glS. end geolhermal properbes .. -~ for Form 6251. 111m. I Other adJustments & lex orelerence Items lettech schedule) . . . . lh 17_ TlPlollncomt. _ _ _ _ _ __ _ _ _ __ _ __ _ __ _ _ _ __ i>.... Form 1116, check boxes bNamloffor"'l"COUlIlryorU.S. posses.ion.... _ _ _ _ _ _ _ _ _ __ _ __ " . c Tote! gras' ncome !rom SOIIces outside the Uvled States ;"......:;...;. - Form 1116, Part I Foreign (Inllch schedule).. ..... ........ ..... ............... .... .... 17c Tu.. d T aiel epphclble deducbans end losses (11IlIch schedule) . . . . . . 17d ,Tot_I lore'gn lexll (check one): . 0 Plld 0 Accrued 17, Form 1116. ParI II I R_on in lexes IV8Illble lor aeelll (11tlJch schedule) . . . . . . . . . 171 Form 1116, Part 1\1 a Other foreiQl'llex informlbon (enlJCh ,chedule) .. .. .... 17. See 1IlI1rudion.1or Form III&. lie Seclion 59('X2l ~Ibns: . TIPI. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ "'..,., See Pomor's bAmCUlt ......................... ....... ........ ..... .. ... lib _ 1ns1lucbans lor Sc:heclJIe K-' Olhor (Form 1065). II Tex.,xempt ",terest oncome.... .. .. ..... .. II Form 1040. lone lib 20 Other lex.exempt oncome ... .. .. ...... ... 20 21 f\IondedJc:bb1' expenses . ... ..... .... ...... 21 58. _ ~ ParIIw'1 IIIs1ructionJ lor 22 OIslrlbubons of money (cesh end marketable IeCIIlbes) 22 SdleduIeK,I (form 1155). n OIslrlbubons 01 property olher Ihen money . .... n 2 545. 24 Recep....e of Iow.ncome hOUSIng aedlt . From secbon 42(j)(5) parlnersh'P' .... ..... .. 241 - Form 8611. lone 8 24b Other !hen on lone 241 . . 24b 25 __III i1form1tlon IlqlIred Ie bI '.....1Id _aIeIr Ie ucII pn. (lII,d,,*,4_ _ d... -''' ~ l]~~~!~f~~s~l~~~1~~9!~~_~0~~~Jl~!________________________________ PARTNERSHIP INTEREST EXCHANGED FOR STOCK OF --------------------------------------------------------------- SuppI. rMnleI CORPORATION VIA A SEC 351 TRANSFER. 1nI.... --------------------------------------------------------------- melIon S!~C~~~)l!~~~lE9_l~~~NS~~~f~J~t~______________________________lLt41~ ---------------------------------------------------------------- ---------------------------------------------------------------- ---------------------------------------------------------------- ---------------------------------------------------------------- ---------------------------------------------------------------- - ---------------------------------------------------------------- ---------------------------------------------------.------------ r------------------------------------------.------____~____~.~~_ ~--------------------------------------------------------------- r------------------------------------------_____________________ '""AAJI' tlnJlll t9T'tilt Ir-_~ FRANK J'"'"'EITCH r, 93 3 392 Sch.dule K.1 (Fonn 1065) o.ptf1mtn1 ollw Y,.,sury Internal RrteRIt Servel Parlne"1 Idantl numbe, . PIftntf', Nlme, Addf,... Ind ZIP Code 1995 ,. i f SAMUEL E. DEITCH 175 LIMEKIUI RD. Partner's ~re of Income, Credits, Deductio"""", Etc. for calonda, yoa, 1995 0' lax yea, be9lnnlng , 1995. and ondln .19 Por1no..hl '1ldontl In numbe,. 25-1784257 2 partMrlhp', HarM. Addr",. and lP CocM DEITCH BROTHERS PEST CONTROL SERVICES owe No. 1S45.00t9 177-42-2287 Partner No: CARLISLE A Th,. partner " . X gener.1 partner o IImlled lIeblllty company member B Wh.t type of enbty I. thIS partner? ... .1!l<! tv.! <!ujl] _ _ _ _ _ c ,. thIS partner. 00 dome.bc '" . 0 f"'Dlgn partner? D Enl.""tnIr'.%of: (I) ~"1:r (II) ";:.." Profll sharlng....._ _ _ _ _ _ _ _ _ _" n n _~O..:QQ.o.9" loss sharing .. "'_ _ ___ __ _ _ _" n ___~O..:QQ.o.9" Owntrsll,pofCIPIIaI "_ _ _ _ _ __ _ _ _" _ _ _ _ _5_0..:9Q.o.9" E IRS Coni. _. tnlrslli 'lied roMn: PHll PA 19255 PA 1701 limited partner 433 PONDEROSA RD. CARLISLE PA 17013 f Partne,'. share of lIebllibos: NorvecOU'.e ...... ........... S au.lifiednonrecou,.elll1ll1Cl/19..... .. (========== Other..................... .........,.... s_ __ __ _ __!~O..: G Tex sheller regl.tr.llon runber · __ _ _ __ _ _ _ _ _ _ _ _ __ H Check here " thl. partnership " . P<t>lIcly traded partnership IS def"",d In secbon 469(1<)(2) ......., .....0 I Check licoble bo...: Amended K.l J AnIIIvslI 01 I aoIta1l1CCOUt11: (a~lIl1l.leccooot .1 (b)C~onbibuled (c) Partner'. share 0' (eI) Withdr.w.ls end (I) ~taIeccOOOI al end 01 I,""s 3, 4\ end 7, grnng 01 year year form 065 d1sbibutlons yelr combine colLmns (.) ScI1O<lJ1eM.2 th""41 (d)) O. 6 528. -3 983. 2 545. O. (a) D1ltrlbul1vl -.11.... (b)- (c) 1040 m....."... tho ...._In column (b) on: I ~ Ordinary oncom. (lou) from trlde '" buslness ecbvlbes ...... 1 -3 856. Net inCOme (loss) from rental re" eslll. .c1J.,be. . . . . . . . . . . 2 SIo ...... 1nJ1nlc1"",. for , Nel inCome (loss) from other renlllecb.,bes . . .... 3 I- SclltdlIIo K.I (Form IIIiS) C Portfollo n:ome (loss): Incoml a Intere.t .......... .... ..... ... Ca ScI1_ B. Pert I. I.... I (loss) b~ ........... ".. .... ... .. .... Cb ScI1e<Ue B. Pert II. line 5 cRoyeIbes ............... ..... .... ..... ... ...... .. ..... ~c SchecUe E. Pert I. line 4 d Nellhor1.term capltal QUI (loss) .,. ..... ... ,.., .. Cd SclltdlIIoD.I...~_(f)"(g) I Net Iong.term c:apotaI QUI (loss) . . . . . . . . ... ... Ca SdCIIo D, boo Il_ (I)" (g) 1 Other pcrlIollO n:ome (loss) (aflach schedule) . . .... .. .... CI En.... IpIIhcaIlIo 10 of.,." """" 5 Guerenteecl payments to p.tner ... . . . . . . . . 5 14 926. ~ SIo p_', ",_"",.for , NtlIlH' (Iou) .. SICI"", IlJl (oaw ihIII duo III W1IIItJ" 1Iltll) .,." , SchoduIo K.I (form IlIi5) 7 Olll_tloul fIllJtilI... ...... .... .. 7 En" .. Diablo Ia of .... rtluln . Ch.,tabll conlributJons (an.ch _Ie) ... .. . 70. ScI1ecUe A, I.... 15", 16 DecIue- . SaclKln 179 .xpanse clIUbon . . . . , . .... "..... ... . tloM 10 00<1Jcli0ns relalld to porlIoIio inCOme (_ schedule) . 10 _ SIo PIrlMr', ",.b",t"",. '" SchoduIo K.I (Form IlIi5) 11 oa. _'OllS fllUdt 11 _I. lZa Interest expanse on Iwe."'enl debts . 12a form 4952. line 1 mon! b(ll_t_..............lI........IIld.t_ bOl j- SIoPlrlMr'._for 1nt_1 m Irwesmant e--I ncluded on line 10 _\Ill 11(2) SchoduIo K.I (f... IlIi5) Ualow.n:omo houslng critdlt: ...,.... Soo PIrlMr'.In_t_ for (1) from secbon 42(1)(5) pamorsh'l" lor pr~ placid II ',. .. SchoduIo K.I (Form IlIi5) sernce be''''" 1990 . . . . .. . . . . .. . .. ......... '. ... am (2) 0Ilw......... 111( 'I'" IXOl*\J pIaod II _ _ 11190 am (3) from _bon <l2(j)(5) part,e...Il",. lor pr_ty pleced II - form lI5lll5.1IIlll5 Cndill -. _ 19119 . . . . .... .. . a'll (4) co.... OIl ....111(3) '" IXOl*\J pIaod II _ "'" 'WI a(4) b o....lled ,,"_tabon IxpandoUIS r.tatecl to rental "a1 ., Htall IC\I....., . 1111 c er_ (0,,", .,., critdlto shown on hnes 13a and 131>) ....'c _ SIo ,.... ....""'- '" "tateclto ,ental rlal_la aclM"" . 11. ~K.t (Fallin d er....to rllalecl to 0,,", _ actMbH lid lC Olher critdlto 1C BAA far ,___'".....t1Ian Act.-.. _Ins_far r_l_ S_It-1 (form I~ t995 PTPIQJIJ ""11M ~ ,.... 5cl1ewle K.11F0rm 106511995 SAMUel ... DE ITCH 177-42-2287 Paoe 2 (.) DI.lribullvl shira nlm (b) Amounl (c) 1040 fill.. onlor tho amounlln column (b) on: SIU. 150 Nele.,M1ng. (10") from .ell.employment. .J~' 11 J)70" . $tlledule SE, SectlOl1 A or B amplOt b Gro.. farmrng or flS/lIng InCome. . . . . . . . . . . . . . . . . . , . . ..... .... 15b J- S.. Pertner', 1n.11uc11Oll. for mon c Gross nonfarm income. . . 15c 26 394. Schedule K.I (form 1065). . . . . . . . . . . . . . . . ... 161 Depreciation 1dj1l.lmenlon proportypllClld m S'M...fter 1986 .....,.. ...... 161 160. AdJusl- bAdJusted gain or loss ........ ................ 16b See p.,tner's merit. .. . . . . . . . and c Deplebon (other than 011 and gas) ........,. ............ ... 16c Instrucllons for Till d (1) Gross Income from 011, gas, and geothermal properbes dnl I- Scl1eci.lle K.l (Form Pro,. ... .... 1~ and instructions ....nc. (2) Deductions allocable to OIl, gas, and geolhermal properbes . -!!.~ for Form 6251. Items I Other a"'uslmonls & la. orererence Ilems (attach schec1uleJ . . 160 17. TJIlO.'........ .... . Form 1116. cl1eck boxes ----------------------- :t b Namt.r flxOlQll.....1ry or U.$ po....SIOII .. ~ ------------- '! .... c Total gross lf1Come'rom SOU'ce' outSIde UlOlkllted 5tal.. o. I- Form 1116, POll I F orafgn (altach'chedule)...... ......... ............. ............. ..... 17c Till.. d Total appbClble deductions and loss.. (alllJth schec1ule) . . . . . . 17d . Total lore'gn laxe, (cl1eet< one): . n Paid fJ Accrued .J!. Form 1116. POll II , Reduction In tax.. .V1Illable for aedlt (aflac:h schedule) . . . ..' 171 Form 1116. Part III a Other loreKrl tax ,"Iormabon (alllJth ,chedulel .. .... ...,..... 17a Sae iIIstnIC\lOIIs fix form 1116- 110 SectIOll 59('X2l ~llura: . TJIlO. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ),':,; See Partner's b AmO\6lt .. .. .. ...... ... lab f- Inslructlons ror 5cl1eci.l1eK.I Other '. ",'.' (Form 1065). I' Tex.exempt inter..t oncome. ...., .,.. .... ....... ..... .. I' Form 1040. tlfle 8b 20 0Iher tax.exempt onc:oma ....... ........ ... .. ~ 21 Nondeducllble expens.. . . . .. .... ...... . . . , . . . . . . . ..... 21 57. f- $eo PerlMr's InshcllOlls fix 22 Otstrlllubons of money (cash and m_labIe ......,b..) . 22 ~Io K.I (form 1065). .... 2J Otslrlbubons 01 property olher than money . . . .... 2J 2 545. 24 Rocapll6e 01 Iow.lIlCOITllI hOUsrng credll . From secbon Q(j)(5) parIr1arlhlps . . . .,.. .. .. .... ... ...... 24. t- Form 8611.1lne a 24b 0Iher than on Ilne 24a .. ... .... .... ...... 24b 25 SIlJllI~ IlformallOllllllU'" .. be ~ _lief, 10 ucfI par"'" (IItICll_....,..-lalf "'... _,,_~ LINE 23: PROPERTY DISTRI8UTION CONSISTS OF ~--------------------------------------------------------------- PARTNERSHIP INTEREST EXCHANGED FOR STOCK OF ~--------------------------------------------------------------- SuppI.. monlal COPORATION VIA A SEC 351 TRANSFER. In"'" ~~-------------------------------------------------------------- matlon ~!~Cl~~J~!~J~lE~-l~~tN!~~~!~~~t~______________________________lLt4~~ --------------------------------------------------------------- ---------------------------------~----------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- --------------------------------------------------------------- -------.------------------------------------------------------- ~1JIAU" n,UM S~ Ko1 (l'Oftft 1065) I. .,,0'- ~ Form PA.e(l995) DEITCH BROTHERS F-.JT CONTROL SERVICES ,....., 2~ .784257 Paoe 2 Plrt VIII Plrtn.,. D1rectorv (...Ins~ _ .tllch .ddlUonaI shiel. In thI.I""".1 II_nIlN.I IAI IBI m, lEI OwnonhlD % Cadi ID Numbtl N.m. .nd Add.... Box Numbtl 1 See Schedule 2 J 4 5 , 7 . t lQ Codn: RI - RISidInI; Ifl- NonrISidlnl; PI-1'ItI v.. RlIldent; P - P,","""",; C - CllIpOralion; E - EItaIe; T - Tnat Slgnlture Ind V.If.catlon l.\'lder penolblS 01 ~. I clecI.. .... I hew _ hi "Un. II'lCUIlng ~ ICI1IOJIft Ind &tIIIments. Ind to III llal 01 my I<rowtlllge Ind biller II .. ""'. CllIfIClInd ~I.. For lhe P.........,: "'_If. _ CX\ 1I1nlannatiCX\ 01_ prlPlfW hu tnylna'''ltfa-. - --- - 03/01196 ....... - - ,... STOTT' GROUP FINANCIAL SERVICES 157 S. HAM ER ST ~ - - CARLISLE PA T__ ,-- -1071 '.AlII, '211"" """ ,....., .. ' PA Schedule RK.1 Resident Partner's Share of Income. (Loss) and Credits 1995 Rty.16750 (09.95) PA CEPARfMENT OF AEVEN..E Part I - G.n.rllllnfonnatlon 193-36-3921 25 -1784257 FRANK J. DEITCH 433 PONDERDSA RD. OEITCH 8ROTHERS PEST CONTROL SERVICES 433 PONDEROSA RD. CARLISLE PA DEnier II1IS partner's percenlage 01: Selore de"'.... or Iermnatlon CARLISLE A Is lI1iS partner. gener.1 partner? 17013 No 17013 End 01 year 50.0000" 50.0000" 50.0000" 160. B O.te lI1's partner's nlerest n partnership began: 01/01/95 --- C IIl11ls partner IS not an lndM<t.Jal, wh.1 type entity IS II? Prol'lshar"'ll............. . (loss) shar"'ll........... Ownership 01 capllal . E Partner's share 01 hablhb.s: " " " P_'. CapItal Account - BasI. . Pemsytvani. loIlows accepled accO<.n1lng prInCiple. and pracbces and not federal Ie. aec!lUlllng. . A reeonah.bOfl 01 eactl partner's capltal aecounllS nol requwed on the PA.65. . The partnership musl mllnlllln eactl partner's Clpltal account. Part II - DI.tributlve Sh... of Income and or (Lo....) pemsytvar.. Income Class Amoo..r1ls Reported Should Se Partner's Shore 01 Income Include lhasa arnou1\s 0fI the hnes or (loss) - whell1er indIC.ted lor these PA retlmS: Oele"'"ned ~ PemsytvanI. Persona/Income la. Rules distributed or nol PA4m PA-4' PA.65 PA.2QS 1 Nel prOllls or \:SS) from the oper.tIon 01 . busineSS, S oleSStOn Of arm -3 L.... 4 3 lb 1. 2 Perns VWIiIa taxlble nterest S L.... 2 3 3 , Pems ..... tax_ dI..- S Line 3 2 4 4 4 Nel gan or (loss) from lI1e sale, uchlllgll or dispoSItion 01 S L.... 5 4 5 5 5 Nel lOCOme 01 Qoss) from rania, royal"... pelenls and . Is S L.... 6 5 6 6 I Income derIved from eslales and trusts S L.... 7 6 7 7 7 T ..abl. and to S L.... I 7 I 7 Part III - Partn." Share of AIIowabl. Credts AppIlcabl. to this luabl. Y.ar ~Employmen\_"P~credll Is ~ 15 ~ 15b Part IV - DI.tributlons I _._ "Un 01 .ta1 "'s,,_ S.. i'lH\lcIlonI. 10 Sale. 01 s 2 01 InterHI 11 o..an_ ,.".AOIlDt tJl1I11t . . ~ ;--. Rf'lol675EX (09"> PA, DEPARTMENT OF ~VEM.E: PA Schedule RK., Resident Partner's Share of Income Loss and Credits 1995 P.rt' - Gene'a1'nfonn.t1on 177-42-2287 25-1784257 SAMUEL E. DEITCH 175 LIMEKILN RD. DEITCH BROTHERS PEST CONTROL SERVICES 433 PONDEROSA RD. CARLISLE PA o Ent.r th.. partner., percentage of: B.for. d.er.... or l"""nebon 17013 CARLISLE A I. th,. partner a general partner7 17013 No B O.t. thI, partner.. Int...., In partnersllip began: 01/01/95 MonhOerlV... End of year 50.0000" 50.0000" 50.0000" 160. C II th., partner .. not an .ndl\nQJeI, ""altype enbty .s .l? Proh. sIlarong . . . . (l.oss) sIlor'"!l Ownersll", 01 clIpllaJ E Portner', shor. 0' hebthb.s: " " " Partnv', Caplbil Account - BHl, · Pemsytverva folIOWlllCCep..d lCCounllnQ principles and pracbces and nol 'ederel tax llCCOIIlllnQ. · A reconCJloabon 01 .ach portner.s c:ep.tal ICCll\nllS nol reqwed on the PA.55. · Th. portnersh", musl mllnl.., .ach partner.s ClIplI., acC1l\n1. P.rt II - Distributive Sh.... of Income .nd or (los..s) Pemsytverva Income Class AmolIlts Report.d Should B. Portner., Share 01 Incom. lncIude these IW11OU1ts on tha lines or (I....) - whether Indicated for these PA r.hIns: Oetermned lklder Pemsytvano. P"soneIlncom. Tax Rules dlSlrllluted or not PA-4m PA-4. PA.55 PA.2O$ Net prof.ts or tSS) from th. _Ilien 01 a lluslness, S oression or .". line .. 3 Ib la 2 Perns I .ax_ Inter... S lone 2 3 3 3 Penns verva taxlble di1ndends S line 3 2 .. .. .. Nel go;" or (loss) from the _, .xchange or dI_bon 0' S lone 5 .. 5 5 5 Net >neom. or (loss) from rents, royalties, patents and ts S lone 6 5 6 6 , Incom. denYld from ostalls and Irust$ S line 7 6 7 7 7 Taxabl. and 10 S l... 8 7 8 7 P.rt III - Partne... Sh_ of AIIow.b1e C...clts Applicable to this TUable Velll' s 1511 IlnCenbw P.rt IV - Disblbution. Is cr.dI. , Nontaxabl. r.Lm 0' bil dlstrlbultons s..~ s s s 10 Sale IX or 01 lnloIest 2 11 Guor-.a 14 ''''_ll~"" OEITCH BROTHERS PEST CONTR SERVICES 25-1784257 """ . .. . Form PA-65, Page 2. Part IX Partner DIrectory A B C D E Ownership Code 10 Name and Box '" Number Address Number 50.0000 .!L 193-36-3921 FRANK J. DEITCH 433 PONDER05A RD, CARLISLE PA 17013 50.0000 .!L 177-42-2287 SAMUEL E. DEITCH 175 LIMEKILN RD, CARLISLE PA 17013 r",m 1120-A U,S. Cc-"oration Short-Fonn Income Tax"""'tum OMI No. 154'.0190 o.p.rtmenl of.,. r,.."" In'-m.l Rhenue SM'vC' 1995 Sse "pIIII.In.tructJon.to mlk.......1he CorporlUon qUlllfiH 10 fII. Fonn ll2O-A. For ",lend... 1995.. w Ift",n Mar 1 199~ enell Dee 31 19 95 U.. - IRS Ilbol. Other- wise, pl.... jlrlnlor typo. CARLISLE E Check appl,clbl. box..: (1) X F Oleck method .1 ......nll X Accrual 1. a.o..IK..Il...... . o. b Ln' '"""'.. ....wc.. C 1WInc,. ... 1 c 2 Cosl of goods sold .. 2 3 GrossprOhl 5lblrecl hne 2 horn line Ic. ......... ............ I I 4 Com..bc cOfllO'abon dlVldends subl.clto Ih. 70% doducbon . 4 N C 5Inlero.t.... ................. ........................... 5 o & Grossrents.... ................................ ......... & · 7 Grossroyllb...................................... ............................ 7 E 8 C.pllll ga'" nel ncom. (llIKh 5che<U. 0 (Form 1120)) ... ....................... ......... 8 9 Net g.., '" Qoss) horn Form 4797. Part II, 'Int 20 (allKh Form 4797) ................... 9 10 OIherncome.. ......... ......... ......... 10 11 ToIIIlncom.. Add I.... 3 Ihr 10 .. .. .. .. .. . 11 12 Compensabon 01 offICer. . .................... 12 13 511w,es end wage. (le.s employment credlts) . . . . . .. . . . . . . . . . 13 14 Rap," end ml",tenance . . . . . . . .. .. . . .. . .. .. .. 14 15 Bad debts .. .. .. .. .. . .. . . .. .. .. .. . 15 OnR~... .......... ........n E D 17 T....endllC...... ....................... ............ 17 U 18 Inler.................................... ......... ..... ... 1. C 19 ChWl_ ccnlribulions (se. Ir1Slrucbons '''' 10% 1,,",lallon). 19 T 20 Depreciation (llIecIl Form 4S62) .. .. .. .. .. . .. . .. . .. 20 ,. '> o 21 L... depreciation cllimed .1_. on ..un . 21 N 22 OIher dec1Jc1lons (llIecIl scI1eO.lte) ... ..MO r ilza t 'on S 23 ToIII ~ Add lines 12lhroug. 22 .. 24 T wIllt __ bofols not operstlllG Iou dtduc1101l .., IJlOClII dtduc1101l1 Sobhcll... 21 hom 110I11 . 25 LH': I Nel _"lIng loss dec1JcIJon .. 25 It 5 .del dec1Jcbons . 25 2& TlllIbI.lncom.. 5lblrect I"" 25c horn I"" 24 . T 'ZJ ToIIIlu (fl'orn Pili' 2. Part I, line 7) . . ~ 28 Paymanls: a 1991--'........ III 1995 It 1995 ..1....11I w _I' . c lISt 1995 lIIund ...,.lId.. III F_ 44&6 . T.. depOSlled ...Ih Form 7004 . P 'Crodlt "om regulated ......-.....1 comp.... (llIecIl F"'m 2439) ~ II CrlOot"" lederlllu on lUlls (alIIc:h Form 4136) . h ToIII PIJlIIonts. Add hnes 28d Ihr.,q. 28g . . . E 2t Esbmlted Iu ~. CllIcI< ., Form 2220 II Ittecned . ; III Tb-' 1128h IS small.. II., '" 1011I 01 line. 27 end 29, ont.. Im<UlI....d S 11 ~ IlIono 28h IS IIrgor lien II. 1011I 0I1ono. 27 end 29, _ IWnClU1I o....plOd 32 [nlor_0I1IOI31 _~"''''_I. - 11-.- ..,..,,..... II,...,... I __ tiel I ........... .. ..... ..... ~_ ~ rll'lt........ ................ ...." hi ...... "".......... w...... It. tow. teMCl .........._ DeNrt"" If"........ .... '*' ........- II MMf... ..............................,.......... A Checl< IhlS box If th. c"'p",atlon IS a personal serVIce corporation (as d"lntd In Temporary R.gs s.c 1.441.4T .... ~ B lIooIor..1O "_ PENN PEST OF CARLISLE INC, ........ Shet, 1M Room Of' Sutttft.lmbet (II. P.O. bol. '" inltrudIoM.) 25-17S9077 Co............... 433 PONDERDSA RD. OIyorTowrrn s.... 11PCooIe D 17013 S 12 312. O. O. 0, 446. 390. 836, -836. -836. A N o ..~ .. 28c t~- ;~-<~ 28 28. 28' 28 ~ PI.... Sign He... ~ -..-.. I - ~ ,.. Paid -- Pnporw'. - ~ 03/08/96 Us. Only '_',_", ST T' GROUP FINANCIAL SERVICES ,- .-------------------------------- :::,.. In..5-" _HJ.tlQ\(.E!l_S}~ __ __ _ _ __ __ __ __ _ _ _ __ u.- ........... CARLISLE PA llI'<.. - BM orP_'Il.."" aducIlonActNotlco._lnstNCtiOM. 0'<"''' """" - 180-48-113 23-2440465 17013 f cwm 1120-.\ (199Sj UO Form.112Q.A(I995) PENN PEST OF C~ISLE, INC. IPIt1I:J Tax Comput.tion 1 I".... Iar. II lht COlpor"lOllll . qUlhflod p'''OIIlI..,.,~. ,orpor.h... ehKk II", 2 aGtn".1 bvllntS,,"dll. Oletk If hom: 0 rOlm JQ) B form 1468 B rorm S8U B 5 B ~ B $ B ~.~forml826..f~m~s, 2a bCreal lor pflor y.ar mo..mm tax (attach Form 8827) . .,." ". ."..,. 2b 3 Total cndIl.. Add hnes2a and 2b ,. '"'' ,.." '" ". ,.,,, '''''''' .,.". ,.",. 4 Subtracthna3homhnal """'" """"""'"'''''' "'''''' ,,,,,.,,,,, 5 Recepl1.r.taxes.Ch.ctuffrom: ,0 Form4255 0 Form8611 ,.."...".,.""."",." & Alternative mlnlmum tax (attach Form 4626) , ." .,..". '" ",,,. ".. '''"."""., .,. 7 Tollllax. Add lines 4 tIv 6. Enler here and on hne 27, . I ...., "". ,,' aft Other In'olmlllon 1 ReIer 10 the ,"strucbons and stat. tha pflnclp.l: aB.'IllISSlelMIJ"""no. . J2~0______________ bB..mn. .elMIJ . _ gTJB~tN~n.O.!l_ _ _ _ _ _ _ _ __ cProduetOt_> !!~T_ J;Q.N}~QI". _ __ _ __ _____ 2 1M any lndIVldual, pa-lnarship, .stat., or trusl althl end 01 the tax year own, dlrec1ly or lI1dlrec1ly, SO% or m<<1 01 Ihe corporabon's voting Sloctc? (Fll( rules of annbution, se. s.cbon 261(c).} . . . . . ..00 Yes 0 No K 'YII; al1lch. _Ie ~..... & IdentllyulQ lllIllIIler. 3 Enter the amO\llt of tax...empt nterlst received Of accrued culOQ tha tax year . . ols 0 , 4 Enl" _ of wl1 dtltrlbuban. tnd lht book .al1lt of......., (_ tIlan WII) dlS\llbutlOllllNd... uus tu... " 0 SO. Pert B..nce Sheets 1 Cash. ,,,.,,,. Za Trade notes and llCCOU1ts '.Cllvabl. b l.u allowance lor bad debts ... S lrnIentories,. ..,.,."...,."."".,... ~ 4 U. S. govemnent obhgations .."...... 5 5 Ta....empt """'otitS (see I'ISWebons) . ~ ' 0Ihet anent HIllS (attach 1d1e<Ut) .. 5 7 lo.... 10 slodcholclers '.,.,.,. . Mortgage and raal astate ~ ..... ta Depreciable, depl._, and intr.gdlle IUIts . b leu eeamuletad depte_, deplebon, and amortizat>on 10 land(ntlolany~lion)". " ......", ,.,., 11 0Ihet assels (attach 1d1e<Ut) . . . . 12 Total_Is.. 11 ACCC<nIS payable . \ 14 Other anent _lJu (a_ scha<lJIe) A 15 loans Item stocllholdars . e I 1& Mor~s. notes, boncls payable . L t 17 0Ihet _bes (attach schaclJta) . ~ 11 C"",ta1 atodl (pra""'ad and conwnon Stodl) . 11 POIdin or eapotal tuplus . : 20 Re_ _nongs . D I 21 le.. cost of treasury IIloc:k Y"~' U TOlalh_.and ,__,' :;Yi,> 12 312, Recolldll.lIon 01 "'~ (LOIS) per Boob With Inc_ per Retum (You are noI requrN to ~ Part IV tf ... foUl .....,. on"" /2, _ (b) Part HI are Itss I/IIIn $25. oct ) , NoI rcome (loSS) par - . a 36 , ........ -*'I OIl ..... .. ... lIOIlltludtd OIl 2 f - ~ rcome tax 11I1 """" (>l..w) S hc.., 01 CllPttal........ 0,"", tapilal QIlnS 7 ~..... ......-,,;; ~..;;.; - 4 ~ MrtcIIo ..OIl -*'I...... ... ... ... .... ,.. {_I (-I ----------- t '-III --.;,;.;,.;.;.-,,;;~-- . ~(i.;it. ,.i)-[;';D;;';,d_ i- """,- - 5 Itn1IlI....of'-I tndI ,....., 25-1759077 Page 2 1 Sa II "" amOl.nt IS entered on line 2, pega I, see the _ksheet n Iha ,"sWellons lor IImOUlls to enter below: (1)Purchases. (2)Addlllonal Slttion 263A cosls (attach lcha<1Jle) ........... . (3)01lw colli (Inaclucll) .................. b Do Ihe rule. 01 seetion 263A (for property proQJced or acquired for ..sale) apply to the corporation? .....0 Vas 0 No & AI.., t.... dUIIlllI1lll 1995 caltnd. .... did IIlI tlllporlbon 11M .. I11....t 11 Ol a IlQIl.luraOl 0"", .."",017'" a fill"'''' ......,t II a ""1lQIl tlllIlItr, (_ IS . bJok ICCO\lftt .....~... 1CCO\lft~ Ol olhllr 1......., _1)1 n....lhtClllpolIbon...,lIMlDloltfllllllTOFlIJ.ZZI.....O Vas 0 No U .Yes,' enter name of fore COl.rl ... a 8 mil oflat"ii:' EJldoflat 800, ;$;.A; 11 512, -1~ 12 312. t;}~ 317, S~E ,....."-. ,::"'1'io> 4 538, 1 000, 7 293. -836. -836, rx~11 lt~ o.pllftrNnl of "- tfU"'" I"~~!IMC. (99) Name(,) $holm on At-Un 1""'\ ,-, .Jepreciation and Amortization (Inducing Inlonn.tion on U.ted Properly) . Altach IhI. form 10 your ,.'urn. OMB No 1 $45.0172 , Form 4562 1995 67 PENN PEST OF CARLISLE INC. Form 1120 LIne 20 a Election to Expen.e Cert Ille Properly (Sec on 179) .: If have en 'L,sled Pr (. ' c lele ParI V be/bte c lele ParI I 1 M.,iml.m don... IimUation. II an .nllflll'lSI zone business, ... on'!ructions.. ..............,. . . . . . . . . . , . . . . 1 2 T olll co.t 01 section 179 Pfoparty pl.ced in 'OMC. dl.rong th. tax)'llar ....... .. .. .. . .. . .. .. .. .. . .. .. . 2 S Threshold co.t 01 section 179 PfOPer1y belor. r.c1lc:I,on on IlmU.lion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S 4 R.ducbon In limitation, SlAllract lone 3 from lone 2. II z.ro or I.... .nler .0. .........,........................ 4 5 0011... Iimllalion for tax )'liar, SlAllract line 4 from line I. II z.ro or I..., .nler .0., II mamed liIong .. ....1., .e.lnS!rucbonS................................ ........ ......................... ....... ........ 5 . Oeser' lion 01 Co., c EI.cled co" .......- 25-1759077 Sl7 500 S200, 000 , 7 LISI.d Pfoperly. Enler amco.nt from lone 27 ......................... ......... ..... 7 a Tolll elected colt of section 179 PfOPer1y. Add amco.nts on colu'nn (c). lones 6 and 7 .. 9 T antab... deQJcllon. Enter th. smaner ollone 5 ... line 8 ................ ................. 10 Carryo_ 01 disal_ deduction from 1994 ........... ................. 11 TaxabI. Incom. .....tallon. Enter th. smalter 01 taxabl. Incom. (noli... I1an zero) ...Iine 5. 12 S.cben 179 .xpens. dedJction. Add lone. 9 and 10, but do not entar mar. than \ine 11 ... 13 C 01 dlsallowed dedlJction to 1996. Adell.,.. 9 and 10. I.SS lone 12 . . . ~ IS NoI.: Do nol use""" II 01 Perl 11/ below fat hsled plopetty (.."omobrle.. cerlan olher vehICleS, cellular lelephones, cerlan c""""lers, or plopetty used /bt enlerfarvnenl, reereallOtl. 01 amusement) Inslead. use Pat, V /bt hsled plopetfy I'M R/J MACRS Depredation for Assets P1.ced In Service Only During Your 1995 To Ve.r (Do NoIlndude L1.ted PI'DIl"'1Y) 8 9 .......... 10 11 12 Section A - GonoroI A.MI Account Election 14 (I) (Ill- - -..- 15.3. . b 5. ar c 7. ar d 10. .. .15. . 120. . . Residenbal ront.. ",operty . .. . . h "lo....siden\lll real . . ploporty , . ~ 27.5 rs 27.5 rs 39 rs S 12 rs 40 rs 1'1I'I SIL S/l S/l SIL SIL S/l SIl , . on NoIIncIude UsIM 17 GOS and ADS dec1lc:bonS fer ....ts placed on _.... on lax )'lien beg.. ~.g bolor. 1995 . II Property ~ 10 _ben 168(1)(1) e_ II /\CAS _ 0"" ....ben -. 20 lIsletl ",operty. Ent.. """"'" from 1.-. 2fi 21 Total. AdeI ~ on \ine 12, \inea 15 _ 16 ll'l caUm (Ill, _ \inea 17 "''''9' 20. Ern...... W>C1 on lie liPP'DllI'- Ione$ 01 'fOAl r.Un P.~ and'! corporal>ON - ... or\SlNCbona 22 f (It ISsets shown 1bO~ Ind pfacld ., serv.c. dl.Ing t\e C\lrtnt ye.. enter thl t.on Of .... blSII Itlrlbutlbte to secttOt'l 26.lA costs U BAA rar '.... ..M1I "......_ Ad_ce. _ ""'lrvcIl-. 17 11 1. 20 21 Form 4M2 (1995) rOlZtllll 1111Q1M .... ...' .' L_____ Hel''''II'". PA [)[rARfM[HT 01 R[V(N..f: ...tAU or COltf'OfllAJ"* 'AlII _~~'r'\121 012> Stap A 1 To. period beglnnl"9 T..y.., . StapS L.bol Alllx Lab4tl Ha,. - - ;r e- H " I tap . Ovorptyftl"" Sltn ..... X Stap H . S.,..,."" "'" =. ..... X ,..... ,...... PA Corporate Tax Report 1995 RCT.1D1 D.p.rlm.", Use Only 0... R.n.... MM DO YY EndI"9 MM DO YY 311 95 12131/95 2 lJq pool 0" PA Clltpol,I.llIlobtllromlhtc_ ollht 11I1.,llUCIIO. Book (REY.1lOO.. PA.2!lS.Q. 3 OtherWlH, pr",' or typ.. 4 Ch.clIlI "long p.llod chonge 5 Olock .,1111I r I " 1111I b III KillIOn<< IIld on! r UII' I .am, and Iddru.label c..,.......... Ace.. to . PENN PEST OF CARLISLE INC. ........""..... DLN . DR6 sO DR7 AD 433 PONDEROSA RD, 7610-524 E.""lllElH) 25-1759077 TIllDLH c.tr-,... s.... lJP CoN CARLI SLE PA 1701 ~1aI SIocll ~=MT.. L_Tu . . 251. 251. Enter Whale DoIIws Only . ~Hot . IncOmoTu. O. TDlaI . 251. 12 "COlum C IDlaIII gr.ller th.. lero, compIlt. Slop E. 11 " COlum C loIIllI Ie" .".. lero, 11'I OYllfplymenl '.,sls. Skip to Slop F. 14 " COlum C IDlaIllllto no 'IS clJe. Sk '0 51 G. ,. Apply COlum C lotll kom 5. 0 tl.. The l)IITIen.1ITlOU1t 'or lacIlII' must be litO or Use .Iter . 0, 251. P Poym"" Copilot Stock ~=MTIll LoonsT...... . COIpOrIt. Hot Incciml T...... 251. . 0, . Enlor . Whol. O. Dolors Only ,....,...... MIl .... tilt ~ C ,..., hi St., D. TDlaI awo_.,lIoI_.,,.,..,., 'Pa 0.,1 01 1_' Poymonl ".,.-........ dlllololli 1...1_1011Io1 11M... ..w,ullo " Check only _ boa to llleel I '"lII>d or bll'lSler m.thod. A B ---un, ...". _~.)Ie ......1 w p."od unclelpaod -..... '_"'II por1loft Ie IIIoIlltl w period. I ~un, .... S oIlht ......1 tar perIOd ...llII'.....)1Il1ht IIIll\ tar perIOd .. Pll"'ll1IlJ _tar perIOd _paod _ ...ltfuod .. ....m"'ll por1loft oIlht......' tar perIOd _." C Rolll>d th. oyer . from th. CU'fent tax iod _ P CU'fent tax tax... .----.....-.........---......--... ,..._-" -.... II 1M.... ~~ ~ eN ....... ....."""'... ~................. It .................... tile....... .....~.... 1W........'.......~fl r J~b. -..-..- ,... .... ,-- 17 ,. a..... ...... ~ ftOtn......... ....... ............ ,.................... .. AIM-.... 251.1' E_II rlllld. h... . - 11 TOn Ir GROUP FINANCIAL SERVICES ........ .. , ..... I.. ...... ... 1_- 717 243-1077 ~.bt.... 23.2U0465 lJ 7 S, t1ANOVER ST, eo" ~ARl 15LJ, .... ZII- e... PA "~lOiOI Olfl..,. ~ ,.,.. . Form RCT.l0l (\995) PA Corpor.t. TIX Report 1995 Page 2 M M 0 0 Y Y Corpor.Uon PENN PEST OF CARLISLE, INe. Account 10 7610-524 TIX Period Endl"ll I 12/31/95 I ~~~.~,,:C~~~StRk,IF~~gftfr~nchl.. T.i " ..../ . T ....1. Porlod T ....10 P.rIod T 11' aye' UII Dep._t B.,loolo, Endlo, (WhoI. Doll". Ooly) UtlOoly HistorY 01 E.mlnos MMDDYY MMDDYY Book Incom. Oldest Panod - S lart Her. . . .............. ..................... . Add,lo.oal 1>1''''''' .11 -IPICIS (Bill'.... " not 'llI.ired) ...................... ~ Current tax year book ,""om. Qoss) ....... .W 03/01/95 12/31/95 -836. . ~ TotJI__(....oI incomIfor,UwI>I'ood,..II".. up 10, Ilulnol_. 5,...10"1) ...... ... ....... 2 -836. ~ 00Vl1Ol (m ,....ld pili ,..lImod 10 t1w. dee... pl-l Sol m.lrucI.... .......................... 3 0.838 4 !>Ivide lone2by lone! ....................... ....................................... ...... 4 -998. . I-'- ~ Av..ge Nellncoml - Enter lno 4 or ,llno 4 is lass than zero enter '0' ................... 5 O. ~ !>Ivide lone5by ,095..... ................................................................ 6 O. 7 Sum 01 Cllpltal stock, paKI.n Capltal and rataned aornongs less treuury stock - at the end 01 the current panod ............................................ .. ........ 7 7 457. . B ~r.;:.o~,:,,:.t~~~=odat1Cl ratavled.elWlW>QS .Ies.s ~a~ .~tod< . - .. .... .... I . 9 Illne 7 IS Iwlc. .s ga.t or hllll as much as hne 8, add Inos 7 and 8 and - dlvideby2.OtherwIJeenterlne7............... .. ....... .... .... ... ...... , 3 729. ..!!.. Nel Worth - Enter lno 9 or II line 9 IS less than zero anter '0' ..... ....... ... .. ........ 10 3 729. . .!L t.\Jlbply lno 10 by 0.75 ........................................ ......... .. ... ........ 11 2 797. lL Add Itne 6 and 11 . . . . . . . . . . . ...... .... ...... ... ...... ...... ..... ..... 12 2 797. 1!. !>IYlde lone 12 by 2....... .............. .. .. ..... ....... ..... ..' ... .. ........... 13 1 399. .1i. $Ioo.ooo.......bon dlclJcbon ............. .... ..... ....... ....... . 14 (S! 00 000) 15 C.,aol SlId v.... -LIlIIII... ....141lut not IoSI \IlIII 11. - 11100% taxllbl., enter hne IS OI1lno 17 . .. .. ..... .... .... .... ,. 15 O. S J.!.. "-""" 01_.._ or .....1.......1 ~1OIl (from SdIoduIl A-I. .... 5 .....) ........,. ""H' 16 lL Taubll VIIue - WhpIy line 15 by lno 16. II lass .... zero, enter '0'. ........ ..... .... 17 O. 18 Capital SlocIlJFonItn r~~~.. TIX - t.UlJpfy hne 17 by ,01275, and enter "IS 1m0000tC;"1I1IIIUTltax lS ........... . ....... ..' ..' ........ - II 251. . Schedule A.1: Appot1lonment Schedule for C.plbl Stoc:klF orwlgn F renchl.e T u f:"......~~=,:-' r~ .........(.tJ.:.~ ~...Tf~~~::cc.,=:=J:::=r'.....IUll I n.....(nfM'.......... ThrM rlelor - From '""'t sheet (RCT-I06) PIIQIl2.. Mruf E. bonSclle<1ft (RCT.I05) 1. Property Ilelor - Pennsytvw>o. 1. . b Property IIClor - To'" . II . 1 e 2. Payroll factor - Perns~. . . ZI . b P.yroltt8Clor-Total.... . 2e 3. SlIIlSlaclor - Pennsytvan. . I. . b Salas laclor - Total. ..' ... . ...... . II . Ie 5 . r_ - From nurt _. I (RCT.106) P8gIII .. ~lnQ E._~ S_ (RCT.102) 4. SlnQle laclor - tunerator . . .. . .. .' . [!!I _ . b SlnQle lactor - Oenomnator ....... .. [::!I . 5 """"'ant - Also anter on hne 16 n Section A _ Oft . 0 1 T.._lrI4ollt.A1.... (~Ie S_ 9.1 on PIIQIl 4 01... ACT .101.) . 1 . 2 t.\JlhpIy... I by .004 . 2 3 TrO....If'1 commoUlOn (see nUuclJon llook.l . I 4 l...... TIX - line 2 . line 3 - 4 . 1'Ilt1Il.. ,,,,"" 2.17 .,..~,..."',,.,....'_';'" C":,_ 'orm RCT,101 PA Corporato Tox Roport 1995 ~ Corpo"u.. PENN PEST OF CARL ISLE , INe. Accou.lID 7610-524 Section C:Corpo,... Net Incomda Income or Iou from federal flturn on. MP.,.t. con"IPlny baSIS (AUoch copy 01 'ocI....'''"" 1120 or 11201,01010 bock 01 the ReT.1DI) Z DocIucllonll o Coopol.lo d,Yldond. r...,ved (from Schodul. C.2, lme 6) . , . . . . . . , . . . . . . . . . . . . . . , , , b ",,,,..I,,,U5 .....~., 10__1 ,........ (.Iloch ochtduIe), . less , . 0I1wt (.Iloch ochtduta) _ ...lructron. . Totti DocIucllon. - Sum of . tlYough c . Lint I Itu I... Z 4 AlIdKI....: . 1.... ompoood an 01 mo....td by nellOCOmO (.Iloch schedule) .. .. . .. . .. .. b 1.. ",.Ier..... ~.... (.ttoch copy 01 , _., , OIm 4626) . . . . . . .. .. .. .. . . .. . .. . . . . E~loymonl .....,11.. p.ymonl crtdll tdlUltment (Ittoch Schedule W) .. .......... d 0tIwt (Ittoch ochtduIe) _ ...truclron. . . . . . . . . . . .. . . , . .. . .. . .. .. .. .. . .. . .. , . . .. . TaltI AlIdKIon. - Sum 011 tlYough d . ......................... ...._ or LOll with ........ ....1 ull"""'. - L.,. 3 Ius I.... 4 1 ,..... Page 3 o 0 Y Y M I M T II Poriod Wi.. 12131/95 TlxplYor U.. Doplrtm.nt (WhoI. Doll... Only) u.. -836. . . . b . 0 . 2 . s -836. . . b . 0 . d . .. . 5 - 836. . C",,_1on WhIch Tronlld. ft. Enllra lIu_..1n P......ytv..... (dati Nollppootlon) Should SIllp 10 Unel1 _ Enlor Uno 5 Thora. ..!... 10101""""",,"", lnCOmt (01 Iou) . . . . . . . . . . . . . ...L. ....- (ef L.ot) I. ... Appoot_ - Llnt 5 rrnnus bnt 6 .............. . Apportoonmonl ",oportJon (tom SchoduIo C.l Ilnt 5) . . . . . . . . , . . . . ...._ (ef Loot) """""_10 .......yIvtnlo - Llnt 7 """,lphed by hne 8 . 10 NonbuolneM lnCOmt (01 Iou) .,Ioctttd 10 P.nn'yMn.. . .. ........ 11 l..oWol_,wLIU)AIIo"'",uf, Tl 1- LIlO!pltthnol0EllIor_tr""hnolfor ....__.001-"'" Ho.....lddlor....RCT.IDJ,1ino 13................... 12 IhI ..-"" 10.. dt4_ (!tom ACT.IO!) con' Ill..... $1,l1C1O,OOC1 11 "A T.a_...._ - Llnt II rrnnus Ilnt 12. II less u.n zero. enter '0' . 14 C .HoIn-Tu - M..nl I.... 13 .0999.......... ch. . .: PPO on,,",nl chedul. lor Corporat. N.t Income T u: , 7 . . 10 . . -836, . . O. O. . 11 12 13 - 14 ,...... LA . 1"'" ...........J................ ......._...... --............. ."..JtLI ......,............................... ...,...... !!!!!t r ocIor - f 10m mort shott (ACT. 1 06) p. 2. -1! Preporty foclot - Ponn.ytvoroo ,. b P'l>\lorty r.ct", - 10111 b Zo P'Y'oIl fOCI.. - PtnnlyMn.. Zt b P'l'oIt fOClot - 10tal . ... ...... b II Solt. _ - Ponnoytvon.. . So b Solo. lodor - T etal b ...ogtCod ..loa _ (_ lI'Ioln.ctlOlll) ~lnt 30 d""ded by Ilnt 3b) 0 2 . . II I. rocl... - Apport-' 1'Iol>ort.... 41 SlnQIo lOCI.. - Ponnaytvon... .. .. .. .. .. ..... C!iI b 5'"1110 foetor - TOI.I. ............. Dl I -' - "'"" _ an bnt 8 lI'I SOCl>on C. _lnOINcIxlnI ch. . : P.nn.v!v I nd Deduction hedul. 1. Zc 3. e 5 .. 1 Z . 4 I ftdttal SchtduIo C. hne 20, tolal-.ctlons Z 'odor.1 SchtduIo C. hne 15, Ior.>gn ~ gr....... (_ 78) . 00_ tom 1?0o.,*,.20'_ """""" __ _ an Ilnes 13 and ,. off_" SchtduIo C - a 70' ...... .. . . . 4 00_ 110m 20'",.__ ...."'" corpora_ IlIttd an hnoo 13 and ,. off_I SchtduIoC- 080'...... .. . . I Oowltnds _ an bnt 13 and 1401 ftdttal SchtduIo C 110m """""" ~ tho! moot lilt '80' """"'0 _ .... tool' 01 IRC SOCl>on 1504 '.J l2land __ - q<ahfy lor 100' -..ctx>n ..... IRC SOCl>on 243 CI) (3) d lhoy _ I _m: __, 00 nolhl ony _.1ncI\oIod In ft_ 4 1 . TallI .......~onl. Dfvtd_ DocI_ - Add hne. 1. 2, 3. 4 and 5 lE_ abo.. "'s.ctlOl1 bnt20.... . .. .. . .. , ~N:lIlU 611'''' 1""'\ ,-., Form ReT-l0l PA Corponto To. Roport 1995 PIlll04 M MOD Y Y CorpoIoUon PENN PEST OF CARLISLE, INC, AeeounllO 7610-524 Tax Poriod Ending I 12/31/95 . .. - .' ..... ,,;,';:.:. .>>:-"',,:,:<:,,,,-'-'>:""'<'-.."': ,-:.,.::,<'y<":.'''<"':''':' . > ctlon D: Glnt,. l"'omiaIIon QIIt.t1onnlll,. , ;_:d';::-;.... , lou'" of corporltion', NC<<ft. 433 PONDEROSA RD. CARLISLE PA 17013 J ...... 01 KCaUf'l..... if..,. '*' lor........ 4 LDaMnolpnncp.... 433 PONDEROSA RD. CARLISLE, PA 17013 5 Hn...... ....._.w._A c:hentM...... nco- IS ~,.,.w...,., pnar,.nod lor which,.,m 01 cNnpN'It not bMn fIlM In PtMI~InlI' c.w. J"'t.) NO 6 N..- Iftd ~ I) 01.... c:or,ornon..... .... ~ 01 .. tlDdlol ... CGrJIOrI""'. 7 oe. caoporI'" of........ ~.... __.... ......,.. .. UadL Noml Fill In PA Accaunt II) Entlty II) (Ell) a Oato or incOfPOI'lbon 03/01 1995 , lnc:orpoIa\ed II1dor \owS olslot. Of PENNSYLVANIA 10 PemsytvenoueJes lox 1lCerlS8 n.rnber 21 - 5 54 - 709 11 Bneldacr~..IO'carporllllCbvityinl'ollnsylv..iI; PEST CONTROL/EXTERI'IINATION 0uIs"" """",....., N 1 A lIst 0",", sloles In """'" texpeyer hIS IlCIMIy: NONE If nco<poI'l\ed ~ Pemsytvenol, _s the corporlbon sohat soles In Pemsytv..17 PI.... c:heck II yes, _s the corporlbon use: PIllS. ched< 0 EmpIoyI 12 SchtOJlI of .... IJ YII ONo o Ail IxckJsMI sales rflll.sentefMt used In Pems I And o AiI.odep.",let~ sales representlb..7 Ownecll Rented s..... Addttss CIty County 1 (for."1" corpor.bons orIy) Old ycu corpor.bon h... . ....... or 0",", bleal olllcor..SIdtnl In Pemsyt...... and payrog nt...sl on lnlleblec1'1ess 01 the corpor.bon7 If ...... IS no, romanno "",'bons on thIS sc:hIcUI do not he.. to be......ed .... ....... . .. . . .. .. .. . . . 2 Old y"" corpor.tIon he.. _t_s outsIanclnO to nclIwlJII .._ 01 Pemsytvenol and/or to par_SIllpS reSldtnl In PemsyMnle7 .... .... . . . . . . .. .. ............. .. .... IDYll ONo Z 0 YII 00 No J o.:t Y"" CGl'poI'.bon h... _t_ outslandnQ held by I NsIot, agonl or lPWchn lor . ,- nclIwlJII tax_ In lis....,. '9" or by In .._ or _ator olin _ _an III .-C ......._ or Pemsyt.....! .IN ~ 10 I....",.. J... 'YII' conIlnua....... IDYll 00 No 4 Amo<.nt 01 inlOflSt actually pIId on th. ndeb~.. n 0As1Icin 2 or 3 clurlnQ lie tax ye. 'oportt<t S R.te 01 inlOf..t ~ to the ~ss In o.Jesbon 2 or 3. , NomnaI..... 01...._ ._... r- 5....,') EnIorIoUl of thIa coUM In Sec1Ion Ion .... Z. ToUI '1IClD10II llftMl I ,. l' ~ t , FF\Q1 : ta. !I.- -... .~ ~- .. ~... . ...~ .- !If! .. ""'" PIOE t(), 1'01 ,......., PENN PEST of c.r1lsle, Inc. The T.",,;I. Co r.., C:OIII",1 S,""'o1fhl '.lial" (717) 24\1.()lll7 I lur 1l(II,'I~IIC' "ar" 1/<IlI' ~ TO; AIJ. sm'I'WMUNT OIHlliltS ANI) TOltS - FROM: I'l!NN 1'l!...T 01' l,^k1.ISJJ;, IN<:. \'ATR\l:K MOkAN RH: MARCIl SI'l~CIA1. I bow a lut .,r 1WaII.n IIV rami Ii... wilb htsi...... _I I jlllll .....Ied I.. k:C nllW ..enla .....,.. Ibll wilh . ''''''''''' ""':1' I.. lhe ne.. I.."""... .yltu"" Iaa.t I 1m ...... I.'.... .,..,.1"... r... MY ......00 110.1 10.. the new h.....,.... .yllum .1... ,In pJa.-.:. I ......k1 aIIo like I.. Iak.. Ihi. uppurtun;ly I.. Ib.... I \he ..""I a Ihlll . ...........lIy UIC u. r<< \heir in.......1iuns. I am '. . St.I~rl,clI," 0.1 lIplcial rar 1M. ~uf,.M,-~ ",';';;;'I~.~.,.. _~~IlIIiI1..Jt\o "Y our lIcrYK:. b7 .tIre . 10 in..'" Ihrir a..- r... 125.00.' Thi. ..rr..... will IVn IhIV end ur M........ 1....'lIIt: lac IIIIYUlllIf" ..r lhi. <lppUI\unily. I ..W 1\...'1 he: rk....... wilh .I\.r lCrVicCl. If 7'''' h.." ""7 """,i..n . (''''-....: "'11I'\ "''lillll: I.. call our ..nkc. 111.-1L )'tlII. Sincerely, I\:nn \\:11 ..r c.Iiahr, \mo, .. ,~... .. ..... _. ..~ "'" - - - - - - - - ~ I - - - - - - - - - - - - - ~ Po Ill... -= ~"'" . , faa... ~ a 1~1QJ I i I , : , , .. I , I i . ! j I i I I I 'II j I :=h , I .= e I w~"i i I" I II Ie . CD ro4 ~ ~ ... l') ~Ii!~ i t)s~ ~ ~~~ & I!~ ~ " . 011 .. ., ~ I " .. . '" .. , i , , t . ! .. , j .. I f . i , ! I , , 389 : PENN PEST, INC, LEBANON BRANCH 4801 LOCUST LANE HARRISBURG, PA 17109 . (() -\ 0 fl:!!! 1 01_ "1 18~ PAY ~ Q . ~~~~ ~~o-.>..~ . ~Fu1tO ~ ~ AOMlHlSTUfJVfOffl(EI LANCASTEII ".17104 QJJ ~ --n-- , , w I. . FOR .'000 ~8 qu' ':0 B ~O ~ L, ~ ~I: ~8 ~ q ~ ~ ~ ~88" PENN PEST, INC. 1437 ~ e.c.1cl I()-{b-q~ .- - - ... -...-----------.-------.. ---- PENN PEST,INC. _,lOCUSTt.NE HA.l I'lQ,PA 17111I PIIU'OII UI8l CAI'I1'ALIIECIICN. IV. _ .. "'G. PA 17111I ""~13 1437 llTK lllDEII II' ~~~H-~~ (" Q ~-s.\..t.. ~ J I I MIOUIIT '\'SS. 0"() I I J II 'AY: , \ "'\-L.. ~ ~~~ ~ DATI Q-70 'C\v. 1'00~a.,j?1' ~Oj'jO~L,~~~ jj' q~? qqa.,a.,1' '" .&___..... 0$-104 E""..~ 0..____0 '" 4S.>04 2 - rid ~ ....,....USA __ _ .___...0'. ..'-- 01'--- --ti,.,,; .1-\1", ,....---------~- j~.~~.~~!~ ~. ~~.~ ........,...., .------- --- . -.-.-. . -- .-- 2 3 , I 2 3 , ~~ . _. -------- .., (2j"Q.. -1f"l'7" .~~. o"aJ.c_ - , .. -?- .-~~:;-'--- ('I ._._----- .... - - ~~j- . .. .. '3.1 ~. ~-{;~~~;j IftIoI - --" . .--- .. - ---. - _. -- ..- .. - . - .. ..- - - - .. c....., lOA ,,,- -, .. , . - .. ... .. ---- , .. .. .. ,- .. 4 5 6 1 434 PENN PEST, INC. LElIAHllfI BRANCH 4lilI1 LOCUST lANE HARRISlIUllG.'A 17108 ~>r~~(~>:\o. \ _ ~ l ('\ .-t1;::!,!il -~ll1~T I$~'<ID ~RS (";;)~nH~ ~ AUlIIIfIiI~I....IIYI.Ut'..I..I.lWfA....IU',..I'ao~ OR ~OOO~l~~ ~Ol~lO~~22~ ~B~ q~2 ~2BB~ ..__..'P- ..- . - 2. 22 23 24 25 26 21 28 29 JO 31 J2 lJ 34 35 J6 "-.1 31 J9 40 .. .. -. - - - 1-. - , , 1- - ---- . .. ----- - - .. .. - o. 1- .. .. .. - - .. - . - .. - .., -- . .. . .. .. .. - - - - , - .. .- .. .. . , - . - - . - - , - - , , .. .. .. . 1- - -- - .- - -- -~-- .. ..---- 0.. . - f- , . - .. -- - , .. .. . . .. .. .. .. - , .. .. - .. , .. .. , .. --~..T".._" - -z,J.5 , .. -. > -.- . .- -J-uf'W-I 13 f-- - -- U IS 16 '7 II 19 20 f-' ------II')'.-;....Q l 21 __ ___ 22.. ,_ n~.o_Q...\,...r~-_- 23 /' i';;;:: "-Q~-~- .- '---- . _ L__ 32 ~~Q ~ ~"",o(l.J'~~ 33 ~ ~O l' C. _1\~ ~__ ___ _____ _ >>T 34 - - ' - ---- '\ 1.<1..... I 2 3 4 .--'- .- S 6 7 8 9 10 \I 12 24 - 2S 26 -. 21 .. 28 29 I. 30 31 ...... f.r.f.~ ...... I.'D .....~USA ",.... .."...", I, J",\ .....,.... I, 2 3 4 .-_..- ....- -..-- -~ -( ti oj ~Q5't.--, .~c..t.- ~1o- ... ---- \I. ~c..<\'I.~ - - -. -- . - - _~o-~I.,... !' -f- - - . -.- - -. - - ..-' ... . - .. .~.. _. .. ." ..----- 1->' I I \~.1. .0.\ -' p" i'J....,p..rJ.t~~ -- : ,..Jh1C'iH ,171J. \ \ L l . H,.f 5.)F 1,1/ ?Y('c~1 . ..,.."1 Tr........' ". \j\'\ -(Jt' )i..Htl ~'\ {6- 0') . .ly;- (,) ~~.3t1,*t ~ (:5'....O;"~ X 1i(t- ") 1tr~'1{ On(1-X I'll-$" Lt'., ~..,.. 1'\0 -(\,.A(L - t-- -' __I I - -- 1,- . -- -- --------. .- - .------ - -- ---.--.--.-- I..i { .c:.. : (,0...... .'i ~ ,1f.f.J .,-~-- . t),.. - -......-.p.. -----.---- . I. , f - -- -- . 1- -. - .. .en I .....6. H - ~ ~..- . . - .". -.- ~ ,~ - -- - ,-_.. _'U , - .~.- ,/ ~e.~ ""'041- .. - - . .. -' 31 - . .. - )9 CO<V'''''. ~....'.o('...,.. -- . '0 I - f- ."-t ._, ,- I t(~ IS~,Q .-- . -- ..' .. - IT o' - ,: o. _~~;\t .- ~10~.' . .- ~-.,,- '''104 [,.fa...... . .. .-.... .-------..----.-- J--'- ;lIlj U.>OC Z.,,,,, "",.. ... Mdt.,OSA - --iii\.. ---- --.--_ _ !:.:.~'.'~!..!r AU"""'.' -..- _...._~._..__..._-. ...--------.. --- - - .._. .. - - ----I 2 3 ---- . ...-- .,.----- , .-. 1x.Jc./'Ic.t.. ,&.'10 .. - . u__ -- 1'.:l \ cv....__ --:'JD'1p -.. ll. ..., .,,', -_. _0. .... - .. =r , J"u I I' - - I ~1'''l) 1: I HJl\.. -. ..-. ... -.-. - -~~ ~ .- _.. . _. - .. " - I , ,- --------.... _. -;;1 I .. .. -- .__ -_-0__- . - , .- -- , Qj: i ----- .. .. ... .. .- .;; .- -- . ... . .. . I .- ..____._u__... - -- , .. ~ . -I- _. - ..- -.. - .. , u. - --.- .. . ~'M' .___ - ~, 'u - . .. - - '- - -- - r -- .... .. - -.-.-. ._- .--. h __ - , .- .. - -j - -,-. - .. , - - .- - - '. ~-~ ... - - .. , I -1 . i ...,...... c~ l'plS 1"'1."., h'.- - 6. 00 , --.- - ?i I -I "k~ '" ". <'" ._. 1- - -- - -. - --.-.. -- . --_.. - 2 '1-- I .t I .- oj - '~,. ) .dO __.... _ ___ I - ,I:t p -- ..,. . - - - ~.. .. , 2 ) . . ~ I 8 9 10 ENN PEST, INC. /" CHECK DATE: AMOUNT: PAID TO: FOR: ACCOUNT: 6310 -, 109 04/25/96 CHECK NUMBER: .......$972.00 PENN PEST OF CARLISLE t'c)(~..( ,1 \ 1093 AMOUNT: 972.00 ACCOUNT: AMOUNT: ENN PEST,INC. -----~_. .-------_...0 .._____ 109f f CHECK DATE: AMOUNT : PAID TO: FOR: ACCOUNT : 6310 [II-~- ----------- 04/26/96 CHECK NUMBER: .......$504 ,00 PENN PEST OF CARLISLE 1095 AMOUNT : 504.00 ACCOUNT : AMOUNT : ... ..::::._~.P'-;~' UlllIIlIIlIlIlIDIIIlLDJIIIIlIJ 1.. l" 1 I . . , .-- ,.., . . . . , - c~ uJ< ~1w' 0}t4...,l~ of' 1.0/;.:., ....1 ",..,~y) """ NIT IIIC. PliNNPESt OF cpt tel B Inw NIaa Cltocblf II.. A "'....... I S1~ 1568 9S$.OO .. ,. ~- Noll: You Co1nnOr cl,im t.tmt..:M,I f,onl w"MoId'''9 "IIJ yow ,,,come "c..d~ SESl1 '00 ,"dud.S un..,ned ,"CI)me ,. g. JOlelesf Ind dl\'id"I~~' and m .not....'" P"f,'t)(1 :an c:1Pn you " . dttp.ndent Cf1 ,hli, '" fp'urr. S.,1e fnlt,urUonl. II you 110 noll'lllJl!rnpl. COmtlll'I Ihe Person,1 Alowanc@'1 WOlk,hul AddUlonl1 'lfOfkahll" IV' on r,ag. 2 10 you can Iq;ull your withhuld-ng .'IOwlnu!' based on Mtmilld dtduchons. "dlU'hnlm., 10 tnc&me. or lwo-fll,ntt'lIwotob 'llulhnnt Complote .. work,h"ll Ihllt IPPV 10 y~u ,tttJIUon the workshull ..,.. htlp )'OU 'lgUr, the numb" of w.lhhotd1n9 ,!tow,net' you 1'1 <<ltlUed to claim. HO\"'lvlr. you ml)' etA.n flwtt .Iowanc.. thin thfl. H..d o' Hnullhold. Glnfl,.,"". V('IU ",IV claIm hlld 01 hous4httld I~ .t,luI on your taa rtlum onty if yt'U Itl UMI.uled Ilnd ply mot. ~hln SO" of lh, coil, flr ""'1'*'9 up . t'oome 'Of )'0Uf..1f and YOUt' d.pentJtnl(') or ult"" Qu'.'rlng Indlvldu.,. NonwlOI lneom.. 11 you hlv, a la'QI .mm,..,' or norM'lgllncoml. tuch it ."IOf..1 0' dlvkf.ndl, you Ihauld con.lder mailing PI"onl' Allow.n... Wo,k.h... A Enter "\" for you"llI II no on. till c.n cl"m you IS . d.pend.n' , { . You I" !lngl. .nd lit.. only on. Job: or } II Ent.r "'"II: . You er. mer".d, lit.. only ant lob. and '(OUI'POUS' dOli nol WCHI<; or · Your w'g" horn Ilecond lob or your Ipoul.'. w.g.. (or Ihllot., alllolh/ 1/1 $',000 or I..., CEnter .\. lor your .pOutl. BuI, you ..,.y choosl 10 .nt.. -0. II you '/1 nlllr~ad .nd 1It.1 .Ither I working IPOUII or mar. IlItn -lab ~h1. ..,.y hllp you lvoId ha.lng 100 Am. .n Ivtlhhtlcl) , . ( , , . . , . .. C o En.er number 01 dlplnd"''' (oth" tl1lln )'OUf IpoUII or you,..l~ you wtII claim on \'11'.11'1' /llurn . 0 E Enl" ""11 you wtII fl. II h.ad or hau.lhold on your I.. /lturn (II' condltlonl ...,~.. H..d or Houuhold lbov., l! FEnter .," 'f rou hl.1 .t 'U!t $1.500 01 .hlld a' dlpln<lln' ..... ..p.nu. lor which you p1.n to cl.lm . ./ldll , o Add.... A ""OUVh f and .ntlllOli! h". ..10: ,lilt .mounl mer be d~I...nl I,om !h, .uml'tr '" a.,mp,""" ,ou clllm on your IIMri. 0 r . II you p1.n 10 lI.m". Of claim 'd/Uslm.nl. 10 In.oml .nd w.nt 10 'Id.... your wnhholdlng, "" lht Otductlonl and AdjustmlnlS WorI<lhI" on p.gl 2. · II you er. .lngll and h... mOfllhan ani I"" .nd your .Qmb;nld ..Iring. Irom .n lobs ....ad $32,000 OR II you It I ntmled end hlv' . worklnglpoulI or mOl. then on. lob. and thl combined lamlngs Irom at JobIucI.d $55,000. .lIlhI Two.Eern.rlTwo.JOb WOfk.h..1 on p.g. 2 !I)'OU want '0 _haVing 100 1"1.... Wflhhlld, . "11I11I11' 01 Ill. I VI snuatlont 11..1 "'" and II1tl<lI11 """ball..... lilt Q on 1In. 5 or Form W,. b'loW, Form W-4 (1997) esl""ftled IAIl plyrn."I' U'M'MjJ fo"" 1040 ES OlhttrWlse. you rnlV nod thlt you OWl Icldlho.."lla.. allhe Inti ollhe yl", Two elmerfITwo Job.. ~r you have . working lpoult Of' mote Ihln one tab. ftgUfl Ih, 101.1 numbl!f of aRo\lrlnces you 11" ",lilted 10 clllm nn III Ioht usinQ wOfkshtel1 "om only one W'4. thlt 101.1 Ihoukt be dMded IfT'lOn9.11 lob. Your \lrllhhoSding wil usually b, motl ICcur,," when .n .no_lnCl. III clalmld on' ,h. W.. filed 'or Ih. hIgh,,1 Plying job .nd Zeta .nowanetl ar. c.1med 'ot n.. olh"l. Ch.ck Vour Wfthholdlng, Aft.. r<u W.' till" In.ct. UlI Pub. . ", I, My WUhhokflnQ Corlect 'ot 19971. 10..1 how the dol., amount you Jr' hiving w"hhlld camplr.. to Y:JUf .,Iimltld lolal annullla.. 01' Pub. g 19 ,splclally if you utld thl Two.Elmllnwo.Job Work,hltl And r<u liming. ....ed $\50,000 (5'"qI') or Uoo,OOO (MIr,Itd). To ordor Pub. 919. till 1-800.829.3878, Check your 1"ephone cnreclOfy for the IAS ,..I,tanc, numb... 101 further help. Ilert Thl. Form, fDf'm W-4l1l'Ot tanskllr.d nlloj unll" you lIon it Wlnl Mor. Moner In Your PAycheck? If you ...pect 10 bt abll to t"lII. Ih, !Ilfned Income Cftdlt lor 1991 Ind . child Ii..ltt with you. you tn.V b, Iblt 10 have plrt "llhe c'fdll added to yOUf tlllll.hom, pIV. FOf dltlails. Oil form W.5 I.om your employet'. Purpo... Complet, form W.4 10 Ihlll yOUf emplo)1r Clr\ wI1hhotd \hi correct Imounl 01 fedl'lllneomt I.. "om your ply form W.4 l'T\Iy be Compllted ttectron6cally. If your employ., hit an tftctronfc l)'It-"'. SIC"" your t.. IflUllion mly changl. you m.y wanl to refigur. your wflhhofding ."ch 'fUI !..mpllon Ftom Wllhhokllng. Rud 1104 1 of Ih. certlflell' ~ow to ... If yOU Ut'I elfllim ...mpt Italu, " ,.tempi. only compl.t. tin" " 2, 3. 4, " .ftd 'IgII th, fom' 10 ",'Id,r. ". No hder'llncomt ,.. wt. bl wllhtleld f,om VOU' p.y. Your I..mption Illptfll FlbrUI'y '7. 1998. A ...L.. II For .c""'.ey. .ompIlI. 1ft _.hul. Ih.1 .pply. ....... Cut h'~' Ind I'''' 'hi .."tncltl '0 rour ,mplower, Kltp the tOf' portion 'or rour rleo,d.. ..... .....~... .....,..... ..... W-4 .,....."........tt>e,'....". Int..NI"'~ s...-.. .. For PrlYle, Act and Plp.MO." A.duetlon Act NoUee, "' re."r,.. 'fyt)l Cf pmt ~ .. '*'" Ind middle WIltI lilt """' 'rourlOdal lecurtly ""'** I~. ~ L ." :r :, '.1.',' I'---'~ ,-1".1l~ ~ Homt .~Jt'" ~ f"d ItI... or '''''11 loutel , O~.. i1......., 0 ....tfled. tM WIthhold 1M Nghtr ""vIe 'It, 1I3J ':." .l~....}c... l-ill I. .1 ....:..~~.........apot,IM,.,...I'""...."cNd....,.eo. Oty or 100ltR. .'.... end I. COd. . . fOUl .... ~ ..... "om NI Oft ,out ,~-' tICU"ty eM. chic" Cr.rl,,(~~, /) 013 ..........'..._na."13....n._'..., ,. U I Tal" numb" aI __II \'011'" C'"1mIng {1rom lilt G .buy. or ~om "" _ksh.", "" P'1l' Z llhly 'rPiV\ . Add!"""" _. M .".,. \'011 w,,~ wnhhtlCS "am .och "'"v....... . I tIIIrn ..emp\lon "om ...~ let '"7, Ind I .1I\1ly ""II...... 10TH '" 'h. I~ condIIlont let "omplIon: · llll ,..,. '*' I "V'~ 10. ,,1uov:I 01 ALL fod....1ncomt I.. wllhht1cl "'._'1 had NO II. .-r: AND · This ,... I ..pact I IIIuov:1 01 All Focltr..1ncamt to. w;_ .....u..1 ',po<1 to hi.. NO tl. .lbIIl " rau "'" - _""'s'_"~" "(.("""" "". . . . . . .. [!J ~ ~, of ......., I ttr'llfy ..... 11m...... ... 1hI........ 01_.'......... JI(. "I.., ~ CW'l ..... ~. ....... to...... ....... ....... 1.......,....01...-.. ~A& DtI. .1- 7 · ._._~-.- ~.~.~.......=r. '= f.tot No tonoo Employee', Withholding Allowance Certlncate OMt No. 1!O5-0010 'lI@97 . . 7 >- C') C ~ c"': ", . F .. :)"",,: - w - " '- ~t ..... ~.,,' .- t~;f,:, "''1: . 0-". . ~ y. '.~ c..."'l. ~ .0:." L.J <}fu C:t; ;:.:~ CJ ,-~"t c... f.. -.. ,~~ - :J t- a (1\