HomeMy WebLinkAbout98-02942
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ul1ll1y I11llY hu hl'OlIlIhlll\ llnd onl)' In
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pl'lnulplIl plll~o ul' hIlHh\IlHII IH'loOIIIolli
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(2) II OOllllly wh\l1'1l11 1'0Ullllll'iy ~uIIIIIIOIII hllllhwlIHI
(3) II ollllllly whol'o ,Ihe 1l1ll11l0 01' lI11t I 011 IIl'qHllllll'
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(4) II 11oll,nly,Whlll'llll tl'lllllllllltlon nl' OOIlIHTllnclllook
plllcu ulIl 01' whlllh Iho ellllllll of lIetlol\ II1'0HO,
,Ii 1'1I.ltC,P, 2179(11), ,!1001ll1H0 nC/llocH, IlIlIuclI, l'oUllllll'i)' oonllllol hllllh\OHH ~1\,clllllhol'llll1d
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Sootloll17(i7 of Iho IlIlHhl11HH Cnrplll'lllion LnIY, 15 I'II,C,S,A, ScctlUI1 1767, cl1litlcd
"Appolntll\ent ol'C\llIlllllllln ol'Col'pomlillnl,l/l. Donlllllck nl' Olhcl' Cnllllc," IIlnloll In pCl'tlncnt pnl'!
n>> Ihlln\VIII
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coml III1(llh~ HI!lill\ll whlpl\' hnvc nppllpllllol1 III Ihla pnHp, WO,nIHo, hnvPHPnrpho\1111 v!l111 lill'pl1p,
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1I1~ \Vpll IlHlnl1l1alWlllhl\\ n Hln\lllo I11I1H\ bo onl1s1r\l\l11111 npponllllwo wllh "W plllll1 !1m!
., nrllhlllrr I1wnnlnll PI' lis wnrllH, Uurn.u~IJ-y,l!lulnHylv!1I1\'\ 1,\\1)(11' l~olu1lwlll-llillUl\, (in A,2\12~~,
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(l'n,Cnll11wllh I ~()7), A HlmllnYnpprnllOh hns bocn proHorlbll(1 1'\11' Ilw OPl1s11'll011(11101' I'llllla pI'
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pnwlldmo, lillll Pn,R,C,P, 127, Il1lhla cnap, t1w IIppllpnblclolllalnllnn prnvltlos 1\11' nlll1l1ll1lhp
oPllI1lr wh~l'~ Ihc ~ol'porlltlonlH rplIlalorpd "HllbJpclln nnr hwnnallllcnl 1I1llwrnl 1'1I10," Thc olllwnl
mlc, PI' 001l1'8P, Is I1nl hwol1alHI\lnl liS II oxprcHalr I1lloWH Iho 101llslllluro 10 mllko cxoopllnnH In !lIP
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allllo\lllOl1ornl. nll~ rognnHng VllIl\IO, Rond togelhol'. tho provisions olol\l'ly prnvllle Illlil nn nolh1l1
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PllIt hc hl'nlllllllln II oOllllly whpro II eorporntllln rOlllllllrlr Ilnmhlcla bllShwHs llI1loss tho \mscls nl'lI
lrpo wlwro IhclclIlslnlllro hnasol Willie olaowhorc,
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As 1(1 Ihii lllnttor sllb Judlco. Iho 101llslnturo hnspruvl1lo(llhnt noHnnH l11vnlvlllB dlssnhllloll
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01' Iho IIppuhllmelll or n rooelvor or n O\lRlodlnl1l11l1HI bo broullht In tho oOllnty whoro'lhc
oorpornllon Is roglHtol'cd, ThlH Is 1101 slIrprlslnll, ThiH sort or OIlHO glvOH rlao In l\lloHtions ,
oOl1opmltlll Iho Intorllnl WOl'kh1BH nftltc cOl'pul'llllon. Inolmllng'proOtnbllltr, nH wollns
rolnllonshlps botw~on shllreholclors. Thnt those I\II0atlolls Wollld bo mlsed In tho tbrllln whol'o thu
corpOl'l\\lol1 hila IIH rogialorod OfOOCH la ol\ly loglcnl.
Th~ 1101'01111111\1 ~\IHO nSKH liS to Inke.notloe 01' thothot tlmt thoro Is "ollrrentlr pcndlng In Ihu
COllrt ol'Cnnlll1on I'lens 01' Yprk COllnl~ Ihllllltlnn ollpllonod: B1oholborBol'Cunstl'llOtlon Co, Inc,
v,Knlllllnd Cnnstnlcllun lno"" Tho York Cpllnty Inwslllllll'Oao O\\t ul'lho SIlIllO ncolllTollOO lIa tho
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prpvl~lpnllB l:lll a~~ l:lllmllnl:lll, WB,al:l p~al:la pllrl:lllr dhlllro 0 B~B prpplaQlld\l1l ~O~rQS
QllrllPI1PlllmPQr~lm~ll!l pma \11l~a'I, .
~~~V~ ~sTA P~MANPA AWN M\OPAPO IMM~PIATAM~NT~, 81 NO TI~N~
ASOC3APO 0 BI NO mN~ ~~ PIN~Ro BWFlol~NT~ P~ PAGAR TA~ sgRVlclo,
VAYA ~NPgRSoNA 0 hhAMg pan T~haFONo A hA OFIOINA cWYA PIR~cOION
'B~ ~NouaNTIM ~SORITA AsA~O PARA AV~RlaUAR-OONpg Sg PWf:pg
OONB~(3WIR ASIBTf:NoIA I,~GA~, ,.'
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'O\1mparllwl Oo~nty Bllr AllBOollltlon
, Twp hlpllrty Avan\1B
cllrllllla, FA 1701 S
(7171 ~49.S166 '
Talaphonal 17171 299.8041
MoN~~s, WAl..l..Acr: & NURloK
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Allin ,Boynton, Jr,
1,0, No, 39860
JI'HTlaS p, OaAnoalo
I,D, No, 62377
100 Plna Strallt
p,O, BoX 1166
Hart'lspuro, PA 1'1108
(717) 232.8000 "
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Attornays for Plaintiffs
Ol1tach, .. July 6, 1998
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1~, Pl1rl1Qrnph ('1,0,2 of tho l:!hmahpll:lprll' AorpPlnpnt pmvil:lIlQ thnt ~lppn
, \l111 pxplrl1tlon of ~PI'1l option, ~allll rllqlJlrl1l:llo m~tlfy thllllhrtrallPll:lol'll of Itll
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~QPhllon not to pprcihl!llo the Il11lHoll, TI1P I'llwatlPll:lorllllwn 111lVll SO ell!YIl In whlpl)
loIMohl!Il1111hl1rall Qffllrol:l for 1l11111l"~hl!l'\lholl:lprll' Qpllpn"I,
16, Pllrnurl1ph \3,0,2 flJrthor prQvlcjall1hl1t ~'ppn axplrntlon of tho,
StwallPll:lllrll' option, !'!hlll'llll InIlY tlll cllt:lpoIlPl:l of Inllny 1i1W f\.1 I In!lnnllr,
17, Mr, r:1\'l'1PI~pruar, In vlolllllon of tha cMlllllllnl:l Q~IIOlltlpnlll1P owet:llo
f,qlllnclltll alwaholdarlli Ilnd In vlolqtlon of tlw Shqrpholdllm' Anrllalnant oll~,aal:l
r:el not 10 IllalJa lIw notloll to 11t:l Shllf'llholdorll rllqlJlrlld ~y PI1r1l0rllPh 3,012 of the
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Shflreholdara' Aorllolnent uhtll MIlY 1213, 1990,
113,
To dllte, r:el hna operlltlld !Hl on S'Qorpol'f.ltlon for purpoaell oUncome
tqxMlon,
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Tha S.oorporlltlon eleotlon IllfoWIl gel 10 pllaa the tAX Ilttrl~lJtetl of Ita
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Inoome to Itllllllf.lI'eholelllrllln proportion to the pllroentaollof ovarlllllllwell he lei ~y
ellOhlll1f.lroholder, In effeot, thlll allowa liel to pay Inoome tllX.llt tha shllreholdarll'
rlltoll, whloh Ilre lower thlln r:al's mtll, Ilnd Illlows f,el to Ilvold pllylng two lavel!'! of "
tax on Inoolne dllltrlbutoellls dlvldandll, 1.&.., gel'a oorporate Inoome hlX' Ilnd Its
shnraholelars' Indlvlelul1llnooma tax,
20, r:el's bualnlllls onel proflta hllvlllnorellsadlllloh year, Almost from tho!
beginning, tho IJUlllneBB of gel hllll lJoon proaparous with burgeoning alllas' !'
~ol1tlnulllIv produolng profits Ilnelll1Pbme, The tax ottrl~\.ltea ,of thot InQomo hove
boon pOBsed ofl to the ahoroholclara through riel's S.oorporatlon alaotlon,
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;! 11 For 111!l Yllma 11111S Il1rQ~O" 1 aaa, (1n~ for IIH! flnll, Illlpoml nmt l"lr~
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. '1\.Hlrlnra of 1 fll:l'/, ~cl "~VllnPlldIlPP" ahnrllhlMm pn Pl11mml, IlIWVfllln~ ~Ilyon~
Any olhllr pompllnsAtlnn, Qufflolllnt 10 IHlY tllIlshl1r1!hQI{illrls IIlX o~lIllllllpn QIlUall~
~y ~CI,',~!'l'QorporllllonqlllllPilon,
22, Aooordlna to ~C,I'Q HlfJ7 FlllImpllll !'lll1talnonl, In lfla7, ~Gllwt
$1,3136,0113 In tl1xaplll Inooma,
23, PUll to thll S'oorporntlon aleotlon, tllll Il1x I1mlllutlls of ~cl'l> Inoomo
for ePoh YIlIH, Inoludlnll the InQoma for 1997, ware trl1hl>f!lrro~, to tha I>hmeholderll
In proporllon to tha pamentllQa of ahmos Iwld PY oaoh ahnraholQer I II Is axpl'lPtoQ
thllt tha tl1X I1.HrI~\.ltas of ~CI's I[1Poml! for laaa IlnQ futurEl perlqQa will ~e
trpnllhml'lQ to thl! alweholdera -- prPvlQod tlw S,oorporntlon olpotlon oontlnuea,
24, ~cl'!'! S'oorpornllon oleotlon ra!'!Uited In 11 ledemllnoonw tax lIaplllW to
Mr, Kadllak und to Mr,MllnnAfor19a7, Itl1lao reaultad In Il atlltl'llnoome tllX
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1I1l~lIlty, Of the total foderlll tf.lX IIl1plllty for 199'1, Mr, Kl1dllak InourreQ $715,000
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I1nd Mr, Ml1nna Inourred $64,000, whloh IlmquntaWaro nqt paid by gOI,
26, POl>plto Wtha benoflt 01 the S,oorporAtlon elootlon to g01,11I) the
oorporMlon's hlatory 01 milking Qlatrl~utliJl1s to Itlll>llIlroholcjors to oovor I1ny tllX
IIllbllltY .01lUaeQ by the s,oorporatlon eleotlon, (III) gOl's oontlnulldprofltl1blllW, and
(IV) ()onalderl1blo oaeh reservos being hold by the Qorporl1tlon, ael, lit tho fllrootlon
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of Mr, William l!loheiberger,haa maQo ollly limited dlatrlbutlons to Muasrs, l<adllak
and Manna, to oovar the tax llllblllty for 1997. aOI Qtopped making tax ,.
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dlsll'lbutio.l1s to Messrs, Kadlhlk and Ml1llna when they resigned their employment,
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It Iq OXflllPtll~ thl11 ~Ol, I1llhll rllfllPllpl1111 Mr, WIIIII1I11 ~'o.hlllll\lrllllf, will rpl~lqO to
I11llko ~ll!trll)~.Hlonq to.ooYllr 111)( IIl1hllllY lor 1 QOa I1l11i I1llY htlurll tllX porlp~9,
~a, Mr, WlIlIl1Il1 f,lnhlllllllrQor rllrQol1l1l1y I1QQUrllQ Mr, KI1~lIl1k I1ncl Mr, Ml1nl1l1 '
, \hl1l r,ClwpulQ lll~I1YQ mnkll QIQtrlputlonq 10 pQYllr 111)( IlIlPlllty Ollllorl1lP~ py gOl'q
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!3'pprpQrl1\loll Illllotlon,
g7, Throuohol11 tl10 YOl1rQ, r,oll1oQ hllPn profltlllllp, During Ihlq limp, EOI
IlOOrUOQ Il1rOIl llmo~lntq of rotPlnpcllll1fnlnoq,
~a, Mr, Wllllpm f.lphlillloropr rupresontoq to Mr, Knfllll1k lll1f1 Mr, Ml1nnl1 .
thl1tonQ~lgollH:\f1 rol/llnoq pPrnlngp of $1,000,000,00, f.CI wlluh:l not rolllln
l\f1dlllonl1l Pl1rnll1Os, Ilut woulQ Qilmlhuto I1I1Y l1~dltlol1l~lllllrnll1gQ, gCII1Pl1h;lVpq oyer
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$1,OPQ,000,OO 111 retl\lneq ollrnlnOQ In 1 Oa7, llutMr, t:lo.l1l1lllerfler rofuaad 10, ,',
Qlqtrlllutll ournlngs, It Is llallevoQ I1nd thorp lore ~VIlrreQ thlll ~Cloontlnues to Ilo
rrl.1,fltl1lll11, Ilut Mr, Wllllpm R1ol1ollleroer (lontlnuea to, refuaa 10 dlatrll~utlll1ny
1110111011, Rl\lhor, Wla Ilollovod I1nd II111reloro PVerro~ that gel Is o.ol1l1nulno to
Ino.rol1se IlIi rOlplned earnlnos,
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29, AS"a majority sl1/'lreho.l~arpf gOI, Mr, Wlllla~ Eichelberger owea 11
fldUo.lpry duty to ,EOll1l1d Ita other sharollOldera,
30, As the solo dlreutor of ECI, Mr, William Elohelbergerowes aflduolllry ,
duty to the oorpomtlon I1nd Itssharol1olders, and Is required to perform hie duties In
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oood flllth, 11111 ,manl1or l1e reasonably bollevoa to be In tha bost Interests of tho
oorpcmtlon lmd with suoh carol Inoludlno roasonable Inquiry, skill and dlllgonoll, os
o parson of ordllliiry prudollo0 woulduao undor similar oltoumatonoes,
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36, It hl111 pelln qpl11l1n~lld Illllt f.OlllOl11ply with Ihll Shltrlll1\llflllrll'
. AurOIlIl111nl I1nd IlwI II Il1l1kll dl~lrlp\lllonll 10 PI1Y Il1xell, gCI hl111 rOf\lqllr.l to ejp liP,
PUll 10 Mr, WIIIII1I11 ~lplllllporUllr's 111lll0luIIl pontrlll of ~CI"l1ny r.lnml1nd Ihl1t ~Ol
rllll1PYQ Mr, Wlllll1m ~IQl1lll\Joroer frpll1 opnlrnl would Illl futllll,
;37, Mr, WIIIIIlIl1 ~loheHlerOllr hall OI1l.I11llr.l r,Ollo keop I,hll dllll1l1n of"lllll
offl1lrll of thl1 Qorponltlon from tho Phllntlffs f10npltll their rlohl to know Ill1mll,
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OOUNT ' I
SHAR~HoI.D~Ra' APPI.IQATION TO DISaaI.V~ lia,
AND TO APPOINT A t..IQUIDATlNQ RIiO~IV~R
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31l, Pllrl10rl1phn 1 tl1rouoh37, allovo, arlllnoorporPtlld hllrllln by referenoe,
39, The oondltlonll for Wlndlno-up onr.l dlnsol~,IIQI1 provided for In 16 Po,
q,S. 619(11 exist, llnn the f.1ots of Mr, WlIlIllm i:lohelbllrger,who Is In oontrol of
gOl, arllllleoall1nd ClpprenslVll, ond oorporl1te Ilnsntll ore Pll\pO wonted or Il1lnplooecl,
40,' It III penllflolal to tho Interllal of the shareholdllrs thllt the oorporptloh
,. bp wound-up alld dissolved, Its ossetn be IIquldl1ted I1S 11 oolno oonoern ond the net
prpolleds of the IIqulclotlon distributed as provldlld by Sub-Chapter G of thll
Business Oorporatlon Low of 1980, It In also peneflolal (IInd In foot no~ensllryt to
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hove 0 roo.lllver pfJllC(ontllllto anq IIquldlltlno reoelver appointed to divest Mr,
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Wllllum ElohelberQer of oonlrolllnd to oomplote thn dlnnolutlon,
41, As r.lllnorllled obove, Mr, William Blohelber\ler Is manlpullltlno BClll10
way deslgnod to prevent any dlstrlbutlona to shareholders and to onuso'ECI's s-,
eloollon to ore ate lIabllltlfls for thll sharoholders, Aooordlnoly, whereos Messrs,
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Kllcllll1l\ I1ml Ml1nnl1 SllP\Ild PIl rllPolvlnodlYI~llndll from ~Ol, Mr, Willi 11m f.lchlllpllnJllr
11116 II11l01llly mrl1nopdmn\lors liP thl1t gal orel1teo IIl1llllltloll IQI' Mllsllrll, Kl1rHlllk I1ml
Ml\nnl1.
42, Aopprt;llnoly, PHlPOI1r.llnOIl for wlmHno'up I1n~ dlllllQlutlpn, InolurHno-.-
IIppolnlll1ont !;If 11 reo(.llvl1r !1(JlldrmrllllrfJ I1nd I1l1quldlltlno r(.lolllver, ohould PI1
Inll\llUtoq IlIlQI\UOIl Ihe al1l\roholdpro mo rQoelvlno no rllturn pn gOI's shMes, c10llplte
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profl\llplIlW I1n~ hloh ratl1lned enrnlnoll, I1nd t:alls orllntlno IInllllltles fpr 1111
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. shl1rphQldpro under Mr, William Elohelparoer's oontrol,
43, The aots 01 ppprllslllon of Mr, William t:lohelporoer, who Is In oontrol
of Iho oorporatlcm, .11re ns sat forth In pnrnorppho 1 throlJOh 37 ,111l0YO, whloh 11m
Inoorporated herein Ily rpferllnoo, The \.1010 of pppreslllon Inolude Mr, r:lohelbQrgor'o
Intpntlonl1l disregard of tho shurllholders' Aoreel1lent, Int(.ll1tlonal use of aOI'o' s.
llorpOH1tlon eleotlon to Ol1use flnanolalhnrm to Mr, Kac1l1nk I1nd Mr, Mnnnl1, I1nd
refuonl tp I1ll1ke c1lstrlbutlons to olweholders, As desorlbed In Countll III, IV pnd V,
pelow, whloh ore Incorporntec1 herllln by roferenou, Mr, Elohell.1eroer hao oauoac1I:GI
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to breaoh tile Shnraholdero' Aoroement nqd brQllohed his duties to ECI. and Ita
fjharaholders,
44, In addition to the oots of opprosslon OB sot fl,lflh abovo, Mr, William
Eloholberoer ol1UBec1 the oorporl1t1on to transfer large sumo of nlOnlao Into
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Improvements t~ the property at 124 Churoh Street, PlIlsburg, PennoYlvanln, whloh
10 not ownod by the oorporatlon. Rathor, It Is leased from 11 pnrtnurshlp, Bnsullne
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~Ol Sl1l11111111kll c1lstrlp\.lllpl111 10 f1IIY IlIl11hPrl1l1plqllr tllX
01'1110111101111 for lllllnppmlll1l1q 1111 PflrloQll Ihrough tll!llllllfl dn~1l1
In \1111. flllllrnllllvll, Qpplmll'thll relllrlPtlon on nllllnllil,IIlly of lllppk
..111 the ~hl1rllhoIQorll' AOrellmcll1t YPlcll1l1f1 \.lnllnfprPollilllllllnQ ,
lrU,-,
AWllrf1 Plnlntlffll f111f11110flllln fll1l1f1191-1l1t ll\.llflolllnt IP
pOf11pllnlll1lll thflm fpr Ihll Qlllnl1gll11 Pfl~IlOq'lly ~Cl'.fl brol1ph of
111Il Elhllrllhplderll' Aorllell1llnl, whloh nmpunl eXPllllds Ihl1 limit
. fpr mflnflf.llory flfpltrllllol1,
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. OQUI\lT IV
I3R~AOH OF FIPuolARY PIJTY
P~AINTIFFS v, MR, WI~~'AM ~'OH~~I3~R,QIlR
~a, Pllrl1fJr/'lphs lthrpuph 67, I1bpvo; me InporporntflQ l1areln Ily mferonpe,
~~, All. thll aolll dlreptor pf f.CI, Mr, WllIIllm J:!phelporoer owea Il flQuPlnry
cllHyto the oprporlltlonllnd Ila slweholQora, I1nf1la required tp p1lrform hla dutlllllln
\load flllih, Inll Il1llnner whloh 110 rlll1110nllbly belhwes to be In tile pellt Intereatll of
thQ oprpprptlon and with Iluoh CJllrO, Inoludlno rllnsonaplll Inquiry, skill and cHlloenoe,
1111 n person ~f 'ordlnpry prudenoe would Uae Ul1der shnllllrolroumstanoell,
60, As tho mllJorlty slweholQer of EOI, Mr, t:lohelbClrOllr owed 11 f1duolllry
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, duly to IlClllnd Its shareholdars,
61, Mr, William J:lolllllberoer did not porforll1l1la duties to EOlln good
faith,
62, Mr, William r:lohelbotgilr did not perform his duties to EDlin a manner
whloh was 111 the best Inlorests of tho o.orpornllon,
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Bn~~JlPJlPJ:1I\' II MRElElI111m' '
'Ii1:ICIlEl~nJ;JJ\GJiln QPHfl'l'RI1Q'l'IPN, :nHJ I ' )
, I
Th~1l Ml:eoml3l1t j.1l l11AAe o~ l!'E\I'l:UAr:{ 1, 19a5 Among WI):'):,I.\f1' V, M
Jl)I cnlilr..13 Ji:RQli1R , I,f.o'lD, R, /i:ICli:E1r.,f.llilRQIilR, HIOIfJ\Ji:L V, !(.I\PILJ\K Anti '
, WIl:.r..IAM .1 t MANNA (flhArehott\arfil) II,nA Jl;IClilllJ.,13f.:RQli1R CONfl'l.'Rl1C'l);!:oN,
INc, (coJ;'pot:aticm), " cprporation eXilltinLJ unt\l!lJ;' the
p~nnfilytvania I3Ueinell1l ccrPct:ation r..AW of 1966,
I\ElQI'l'AXlI'l
"
"
WilliAm P, michelberger cwnfil 275' IlhArefil, Hloyd ft,
miohalbeJ;'ger own~ 50 ahAJ;'es, Miohael P, l<At\ilak owne 100 eharaa,
ant\, William .1, Manna owns 76 eharee, ant\ together tho
aharal101del:fil own AU of the Corpol."atj,on I a outfiltAl1t\in9 ahAraa,
anct,: ",
The pArtiea bal~eve thAt it ifil in the b~et intereat of the
corpol."Ation ant\ the SharehcJ,ctera to mAke provhiona j;or the
future ctiepofilition of the Shares Of the corporation, ant\
The pllrpoae of thill l\greement ill tQ provic\e fpr continuity
in the management Anct polioiel! of the corporation by provic\ing
for, the }j'lut:lJIH\e~ of any c\eoeallod ahareI1Qldet:' s ahAres by the
corporation and by giving the ootporation and the ahareholdere
the firfiltoption to purohAse Any ahar.'ee attamptect to bo sold llY
a' ahal."aholder c\urin9 hifil or her lifatime,
It ia agreed as fo110wel
"
M'l'J;O~E OHEl
R:E1STRIOTIOHB AijD NOTIOE
1.,01.
Restriotion on Tr"nefer
lllxoopt as expressly pl'ov.tcted in thie lIgreemont,
no Shareholder may assign, traneter, or in any manner dispose
of, or permit a levy or attaohUlent on, any part of his Qr her
ShAr~s withoQt the writt,noonsent of the other Shqreholcters\
1,0:1 ,
Agreement Available for Inepeotion
1M M. WILtv
,\SSOCI.\tF.5
'IORltUI " I..\W
IIAkLll melE
t1~.u.o, 'A Ill"
.. An original oopy ,of thls Mreement ehall. be
c\elivered to the ssotetary of the Corporation and maintainadat
the prinoipal exeoutive offioe of the corporation available for
inepeotion by any person reqtieeting to see it,
",
...1...
"
"
JMi M, WILt;V
J. AIISOcIATE.!l
,nClll/tlVI.\Il.\W
II.\R~Cl pRell
'llI.'.!lIURCl,'~ 'ltll
"
, ,
1 ",4
..,
,
, ,
~A~~ ~hAra~ tp ~ell~r, ~iqha~~ar90r aon~tr"ctipn, ~nOll: Ari~,th~
price pai~ ~o!:' fld~flharell llhaH ~e thane1:- of ,. tl1~ ~\.\rohA~!1
~rice a~ cletl'lt1ntneq pel9W I l"'llfl the all10Unt pf any e\.\oh
opli9atipn AflflU\11eA \:Iy the pU:I;'ch'Minq ~hArehol\1erll,
.ach ~hArehplqer IlhAll pa entitlecl to purchAee
thAt porticn Of the ~e013A~eq llhareholc\e!:,' fl flhAra~ whiph ill
prppO!:'tionAl to the purchaflinq llhArehol~er'll peroentAge of
awnet'flhip of the cot:floration'e IlhAre~ fJ~qlUding tho~e IWlq \:Iy'
the dePfJafled ~hAreholqer,
, II, lla,
pete~minAticn of purohAeB prioe
on the death of A llhareholder the purohaae price
ShAH pe the Vf.\l\.\e of hie or her stocl\'. aa estap:!,iflhed in
APoot:qAnQe with parl-'C,J;t'aph ;a,03 c~ t;hi!,! Mreement.
;l,03, Pet13t:minAtion of VAlUe Of ~hA!:'eS
The VAlU~ Of the !'!harea 'of eAch IndividuAl
. ~hareholdf3r to PfJ flol~ put'fl\.lant to thil!! l\l;!t'aement sha;\.! pe the
pool\'. value of, the shAree Afl detsrminetl pn ,thl'l Jaat flay of the
month ill1me,l:UatalY pl.'eoediml the c\f\te cf d13Ath" 'l!he pool~,' ,value
flhaH pa deterl1\ineq py firflt lidding All of the VAl\.lat;ion clate the
cApital, fl\.lt'plUel And undivided profit!'!, after having deduoted
any r.aflerve!3 previo\.lfllY e!'!tablisheq I 'J.'he !'!um of thefle il1ems
flhal.l pe dividec\ by the number of flhAl,'eS outfltanc\inq afl ,of that'
date, and the ~lotient flh~ll rep~esent tna booK v~lUe of each
share,
41,04, .
,I
Refusal or Failure to PUrohase by a Sharahold$~
In the event tnAt any SharehOlder i~ una~le or
unwilling tc purohaee the deoElased Shareholder'sshare$, aa, set
!orth aboVe, then the remaininq Sharehcldere shall be sntitled
to purohase the decea!3od Shareholder's aharafl in proportion to
their relativ~ ownership in the corporation,
41,05.
purohaee by oorporation .
. . In. the event thAt the remaining shareholders ars
ul1willing OJ.' un~l:ile to purohase all of the deceased
Shareholder's sharee, then the Corporation shallpuroha~e all
remaining shares fro~ the deceaaed Sharsholder's estate.
'2.06,
Payment of purohase Pride
'1'he pl:'ice" to'pe paid for tha. anar,ea of the
_:1M
, \
"
"
'''''1M, WILF,V
. 1 .ISSacI" Tt.~
""IINlll ~T J.\Y1
11~IlL" C1RCll
IUJIURli, ,~ 1111.
. ,(
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, \.
, .
,I,'
QBRe~~B~ ~hAreholaar _hAll ~B ~Ai~ in,CortY~ei9ht (48)
qqn~lao~tiVB j110nthly Pl!\ymentB ~Bginning thrala (I):\) . mpnthr:l A~tBru,-
the qAte o~ thfl aaPllalant / II, qBAth, .. 'Phil \.\nPAiel ~i\lAnRB Cll! to\1
p\.lrOhAllfl pripfl !>hAll PI3 ~V.\.qenRe~ py A I'larha of ne90thPle
prom.\.lIllory notea ffiAHfl ~y the cOrPol:"AMon tp the oreler oC thf;l
lalltAUI3 of th\1 aeoaAllaq w~th intaraat not to eKpeeQ l3ight peroent
(08%) A yaAr AnA with f\.\ll pr.ivilB9l3of prBpAymel1t of Al~ or Any
PArt of the p!;'inR.\.PA1 at flnY timl3 witho\.\t p13nA1ty or. ~pn~l'l,
mAPh nota IlhA~.l pr.oviAa thAt in ~;hB eVBnt Of qefA\.Il t in PAYT1\ent
of tha prinoipAl, All not Oil I'l\.\PIlBI;I\.\13nt.lY Q\.\13 flhall bepome (;\1.\13
. Anc:\ PAYAPle immaC:\!AtalY. "
"
Tha p\\rpl1e,f'le PJ7ipl3 PaYA~lB to tOI3 efltAtl3 of the
ql'jQealll3Q Sharaholc:\l3r IIhAll PB pAiq in oallh, or in PAllh Anli
nOtell, to the ~lItAta qf the qeOBAaed ~hArehqlqer on1
, "I ,
, (a) The Blltah of. the qeoeA!ilaa ahal'ehOlqer
peoominq oapAble of tl'anafer:dn(;J to the COl;'pClratipn full ler;Jal
Ilnd Bl;IUitAP~e t/lX"free title to the 13ll/Irel'! of the qapeAfleq
ShAreholder, /lnc:\
,
(b) Ddivory to the ,SeoretAry of the COrpOl:'fltion
of the Clertifioate, repref'lBnting thl3 ShAr131l of the qeoflAseq
Shl\reholqBl;' properly enqol;'lIfld in the mannElr rec::{\.\ireq to tl:'/lnsfE\r
f\.\ll legal Allq equit/lble tAl(.~free title of those ShArel3 to the
Co l;'1? ot'F\ tion. ! , " ,
2,'07.
Cos,ta of, perform.Anoe
The el3tAte of the qeoeasBq Shat'enol:qer ahAll
bear I AIlt:\ ShAll hold .'the" corporAtion hAli1\,lel3s. from I All oosts
"And expenses required fOl' seo\.\r!ng Any oo\.\rt orqerS oourt
qE\ot'ees, oo\.\rt ClPproVFlls I, inher itFlt10e tAX 0, leAra,noBEI ( And el3ta te
tAx OlearAnoes l;'el;lUired to enable the estate of tne deosasE\d
Shareholder to trAnafet' to the 'corpora'tion full. le91\1 And
eq\.\i tAble ,: ,tax"free ,ti tlB to the . ShAres of the deoeAsed
Sh~rElholder ~.n the corporation.
.2,08. Estate of Deoeased ,.Shlll'eholqer Defined
The te~q "estate of the deoeAset:\ ShAreholder" AS
uaed in thia I\gret\ment I shall inoludll AI3 those' term!! A1:'~
llnderstood unqar the lAws of the CommonweAlth of PennsylvaniA' '
, ,
(a) The personal repreaentAtiVe of the esu,\te o'f
the deoeased Shareholdet',
(b) The survivinq joint tenant of' the decellsed
..,401
1.1.'1 M, W1LJ;V
1 ASSOCIA TE.~
'l1l1l11ttl' ~T 1..\".
11~~~1 CI~CU
'I .UIU~lI, ~~ 1"11
! ,
. -
. I I,
, "
Ilh!\!:'l!hp:!.~I'lt' wh'on I>IH\t'~!1 P~ the op!.'pP!-"lItipn At'I'I pwne~' PV ,I\hp
'- qecf1l\l1l'lC\ Ilhl\.vahp:!.t\$t'. AM II ~)el-"!l(:m u-whp ill I\Pt 1'I(:11:i VI! in the
P~ainella 9f the oP!:'pp!:'lItion AI1 jPint l\enAnt!1.
, ,( 0) ~nv othe!:, pe!."IlPnwhoffillY I PI'lCI\I.UHl o~ the
qomm~mitY p!."oparty, P!." o t:hf1 l' :!.IIW P~ Any j~):'i$r.\iotipn, I\cq1-\ire
withq~t, IlP):'ffilll pt'oPllte Prooaeq;\.nlJll IIny li';\.ght I title I !:It' ;\.nt,!lrellt
in ,Pf ,to. the I1hArall' Of . the e\aQeAl1eC\ IlhArehQ~eI~r in th~
OOrnp1:'Atipn peoA~lle pI! the t\el\\lh P~ the ahll!."'ehplele):'. " ,
~,09, Olqll;\.ng
The C11p$~ng of thE! p~!."'chAlle Anq tile l>l\:!.e IlhAn
t/lxe pll\pe At the Qfl!ipe pf the ocrpo!:'l\tion At A.,elAte c\ef;l;\.c./nAteq
).:Iy the OO%:,pO!:'Ation, wh;\'cllllh<\ll npt pe ffipre, than 'l~O elAYIl
follpw;\.nq the dAte of the q"A:!.ifiC1Ation pf the pet'1l0nAl
rep):'eaentAtive, pn~not Ieee thl\n ten qllYIl fOl:!.pwing thAt: elAte.
lIpwever, the Cllolling ahl\l1 tAxe p:!.I\OEl, pe'i1l\re\hlOl> of the clAt:e Of
q\\AlifioAt:ion of the peraonAl t'I!J;ll:,ellentl\tivell, witl1in Ilix monthll
of the ql\te 011 the deAt:h of the qepeqent. ' .
~,lO, Inl\).:Iility or Unwillingnesl> to,P~rphl\lle
I. ,.
If the oorpor/l,t:!.on' h/110 inal\ffipient earnecl
I3Urpl~a to permit the bwf~l purphAae of the ShArel3, or if the
oorporAtion ie ot:hel:'Wil3e unable 01:" reftll3ea 1:0 pUr.ch~",e iIll of
the qeceelent I a flhal,'ea, the obHgAt.1on of thfilCorpol:'il, tioh with
r\3apect to the ahArel3 ahall pe' deell1ad I\estlmeq proportionat:aly Py
the a~rviving ahArehpldera.
3,01.
M'J.1ICr.,~ TIiREIil
., TRANarEl\ OF SlIMES PifflING SJ{MEHOI,DER 'S I,U"lll
Firat Purohase option
If any 'Shareholder desirefil to dispose of any
Shal-es in the. Corpo!,".ation . qUdng hia or . her Hf.etime,,, the
Shareholder shall first offer to sell tile ShAre. to the
Corporation and the other Shl\!,"eholders ).:Iy giVing them Written
notioe .to that "effect, The not:ioe mustap\3ciry the numbel:' 'of
Shares offered fo\:, eale and must be giVen in bhe manner
p~escribed by paragraph 5,09. The corporat.ton ahAll have the
optioll for thirty.days aftel;' retleipt Of the notice to pUl:'chAM
any or all of the offered Shares at the pl;'ice e$tablit3hed in
accordanoe with I\l'tiole TWo' of this I\gl,'eement.
3,02.
Seconcl Purohase optioll
...5...
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,(
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, At th~ en~ of itQ option p~rig~, th~ Qorpor~tton
. ~hAH notJ.-lIY the IlhA:r.flho~clElr~ o~. An~ O\.II1\\:Iar Rf~ ShArPQ. it h!Hi
~leotfl~ not to p4rRha~e, an~ tha IlhArshol~era.. ahall hAVa the
option fPL' t:hil:'ty C\AYa ~ft:fll:' t:hAt: nRt:ifilJ~URn tq PllrphAae .AU
o~ t:.hs IlMrllQ ot'fareq fp!:, l'll'\le not P4rqIWII'lc\ p~ the r;lo!:'POl:'I\t!on
at the pripa aQt~pliahec\ in aaoorql\l1lJa with. pAr~gNph I!. p:j
c\etSJ;'11\inl\1c.\ AQ of tl1l1 clat:o at' the noUae giVen Ilnc\el;' p~r/\grAph
6,09 ~Aoh sh~rBholc\er ahall hAVe the right: to p4rlJhAQe the
pordon pf t:ha IlhAreQ oft'erec\ for llAle .All the n\.lmpel:' at IlhArea
ownec\ Py him ot' hill' At thAt: til1\!l sh1l11 \:Ie~1;' tCl the total mnllbet'
of Ilharea OWnllc\ \:Iy ~ll the other Ilh~l;'aholc\llrs eKo14Qing the
lla~Ung . I1hAreholt\llr, lIowever I it any Ilhareholc\Elr qpeQ not,
P4rohl\~e hill C\t' hilt.' full propot't:.tOnA\lll Allotment ot' thll Ilharall,
.the unaoollptac\ aharell may ,.pe p4L'ohaasc\ lJy thll other'
ahat'eholc\llra. If All of the offerllc\ aharell~re not: PUroh~lled'\:Iy
eithar tha oorporation or the IlhAreholdera, Ot' both, before the,
f3KpirAt:ion Of the f!leooncl option perioel, the llA11ing shareholelElr'
shall be uMllr no oPUgation \;0 sell any of the offered ahllt.'e13
to the oor);loration or oth~r I3hl\reholelerQ but: ml\y,c\.:tllPOQeot the
SharOll in any 1l\Wf41 manner. .
:1,0:1 ,
Pa~mel1t of l'\.IrohllElu Prioe
II
ThM P4roha~~ ,prioe for Any ahare~ being a~lcl Py
the Shareholeler uncler thi~ ^rtiole shall pe paiel in fatty-eight
(" a) oonaeoutive l11onthlypa. yment~, paginning thus (on) monthI'!.
trol1\ ,the elate of the ~hal'eholcl~t' :Leaving the Corpo!:'ation. "'I.'hEl
unp!\ic\ balanlJe of the pUl'ohase prioe" ~hall be evic\enOllr:\ by a
~e!;'iea of nElQot1able prollliaElor~1 notes IllAc\c:I by the oorpOr!\t1on to.
.th~ ot'der of the 13hareholelet', with intereat: not. to e~oeeelaiCjht
pOt'OBnt( oa%) a year ancl with cull privilege of' prepayment at:
all 01;' any port of the pt'inoipal at an~ time without pennltyor
ponuai Each note shall pt'oViele that in the event Of default in
payment: oC tha prinoipal, nll noteQ QUb~eqUent:1Y d4e ~ha).l
pecome due and pa~able il11l1\eellatelY. ,
The pUl'ohMS prioe payable to thE! Shateholeler
shall be paiel ~n oash/or in oaah~nel notes, to the Shareholder
; . I I
4ponl
I,\/~ ~" Wl~EV
I ASSOCIMI::.,
I1llll/ltYI~' '....11
II~RI.lI tIRe ,t
. I ,l-'iIU!Q, ~\ IMu
(a) The Shareholder beooming onpaPle of
branflferring to, bile Corporation full legal Itnel. equitaple tax-
free title to the aha rea to be purohased, nnc\.. '
(P) Delivery tathe Seoretary ofbhe Cotporntion
of the oBt'tifioate rapreaentingthe8hnraa of the sharuholeler/
properlr endtJraetl in the manner req\.lired to tran~fet' full legnl
anel equ table tax"fl'ee title of thOBe ahates' to the corpol'atio/l.
-Ii"
I ,
'II
, I ,.
I '
i'l
!I, 04 t P'4roh~,"p rr~PIll !:m ~~rlqinf\t~oll of! EmploYml'lnt:,
~~Q~pt ~Y-8~tir~~~nt or p"~ to P~rmAn~nt P~~A~i~ity
.. ... On thl3 tE1rm~nAtion of E1mp~OYm~nt of! AllY
~hArBhol~E1r othE1t' thAnd"~ to ~hAr~ho~~erl,. r~tir~m~l1t or
permAn~nt ~i~APiHtY M d~f~nE1q herl3!n, AH l'lhArl3~ oWn",q PY th~
.h~rahQldBr ,"hA~~ pe E10ld And p"rOhA~ed A~ providl3d in ArtiQl~
ThreeoC thl'A9reement:, ~~o~Pt thAt th~ ~hAre"hA~~ po VA~\.\Bd
AeOC the lA,t rag"lAr VA1"Ation'A' ~at fOrth in aOhed"la"A" to
t:hil'J Mraem~nt:, p\.\tif no .vi\l\.\~ JHIlO p~an 130 eet f!orth Py th~"
, PArtil3~ h~r.ato, ,th~n lit pook: val\.\e al3 l3~tCorth in l\;-tiole TWO
her.eOf, . Set:t.~eman.t f!or f.l4Qh pUrQhA'~ and '.113 'hAll ~~ held
within l~O qaYI3 Of! the qAtte at termim~tion oC emploYm~nt:, IW\
wi th payment: of' the. pUrOhL\fl~ prioE1 A' 'E1t forth. in parAg17l1ph
3,O~ herE1of. .
3, DEh P"l;'ohl\~e Pl,'ioe 011 Retiram~nt or Pal;'l'Hment Pi'APility
, on the retirement of a ShAreholder, 01;' on
'term.i,Mtion "of employm~nt of! A Shl\re\1Oldel:' by the oqrpot'lItion
due to permanent: dia/il;liU ty I all. 'hAree QWl1QQ by the ShAl;'eho~der "
f.lhAl.l Re ,old' and p\.\rohaf.lE1cl AI3 provided in Tlrtiole Three of thi!!
Tlqr.eement, exoept thAt, in the oa,o of retirQment/. t:lw I3hllrl3!!
~hAll l;le val\.\~d AI.. of! the ~al3t:. day of tha month iml11l3diately ."
preoeding the dAta oC retireml3nt, Settlement fat' auoh purohaE1e
and aAle ahall be'held within 120 d~y~ or th~ date of ~at1rament
or the datEI upon whioh sh~reholder ia c\etermin~d to lJe
permf!.nently r.\isal;lled/ ~nd with PaY1Qant of the pl\~ohllf.le ,priqe aa
eet forth in paragraph~t03 hl3reof, ,
3,06,
Definitions
"
Retirement
The term "retirementll in thia i\gre~mentshAll
mean the voll\ntary withdrAWAl from aotivo OOne\l\Clt of the
pusineaa of ths corpor~tion by a Sh!\t'eholder whq haa attained an
age grellc~r th.n sixcy~two (~n) years ,at age as of the date af
the t\ermination of hia employment, ",
Per1l1anlll1t p!eabil1tv
, 'rhe term "permanent disability" as uaee\ in tllia
i\greement"~hAll melln any,phyoioal or mental oOlldition affeoting
anY aignlltiory to thia Agreement to aUoh eNtent that he or ahe ie
ho long~r able to p~rCorm the usual and cuatomary servioea for
the cbrparation, And auohdisalJility haa exiatedf!bt' l\ miniMum
period of twelve P.~) months at the diaaretion bf the hon-
1,11'1 M, WII.l:Y
\ ,\~50CI^ n:s
I1Ufl/ttVI M L\W
I "RlU CI!clt
'll.l~IU!lI, IA 1111\
'-7-
I I " t
IN iii. Wll.EV
,'!laOCl" Tts
rni\l1l~. ~T ,",1'1
'~~LQ l;1~CU
1.\lU~n, ~~ 11111
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,(
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qn tl1rminAt~,on ot thi!! Mr"'l3ml'lnt, t;IlA IlAore\;Ar~ of t:h~
qorpgrAtionehA~l, ontl1n~",r of thp Illlarp oel:'t~fioAtPe, ~"'lat",
toe' notAtion ref",):rin9 tp thie 'A9raement, '
a,Q~, hmllntlmenl: ot i\9r"'lilment
'I'll!" M~'l1flml1nt OontA!nf:1 tha antira A9rE\eml3nt pf
\:ha pArt!fle, No mp~!f iOI\1;.!on, Amfln~mfl"tl Or t\!eOhArqe PI! Any
term Or provhion Of th!1'l Agreemant: Qhlll;L ~e vl\l:\.q or P!nt\:\.ng
4nl~Qe mllt\a in writing Ant\ !!i~nl3q py All Of the partiea, No
waiv",l:' pt' Any of tha tl1t111!'l of tlli!! Mrelilm"'nt ehAll I:>e vAlitl
4nlaQa a~9n~qpy tile PArty A9Ain!!\; whom the Wll!v",r :\.e ~eal1rteA.
a,oa,
Not:\.oes
I\ny notioe, qemAnc\, pffer or othl1r, OpmmUl1:\.ollt!!:ma
ret:'{\.lire~ at' peP1\ittet\ Py thie Mreement or l:1y law t9 P\3 !!",r.veA
,on! or c\elivereelt:ol any PArt to thie Mreement ahAl:\. p", in
wrlting, eign",q l:1y tle pllrty giving or qelivering it, and aent
py oertifiec\ m~il tp All pArtiea l1im41taneoUaly at their
reePeotive Ac\e1reaeee eet forth in'llohedu:\.e ~ AttAOhl3e\ tp thie
Agreement, I\nynot!Ofl, e1emllnc\, gffer, or other written
inl3trument requiret\ to pe given or. eent to tile I3l3tah of thf,l
deoeqent at the IlIlAreholeler' e aqe\rPAe in that e~MP:\.t; AllY
pArty I3IlAll hlWe the right! to ahAnge thE! pll\oe to wh!ph Any
notioe, offet', deml,\nd, or writ!ngshall ,pe filent by stmilar
notioG t!o all J,'JArtie!3 to thie Agreement. The elAte at mailing oC
<my offel:,. demnnc\, notice 01" instrument !3hall ~'e deemeq to be
tha mailing date and shall be effeotive ft'omthat da~e,
'fl.06.
Governing Law
ThiB Agreement sholl I:>I3CJonatruet;\ and gclVernf3d PV
of the cOlllmp,\1Woalth of venMylvanill. ..
Speo!fip Performanoe
the laws
5.0.7.
The partie!3 agree that the e\amageB that will
aoorue to a party, 6rl:ol:he per!3onal repreaentativee of a
deoedent, by reason or failurf3 to perfol'm <lny of the obliqations
under thiBl\greement will bf3 diffioult to mel\!3ure in money.
COh!3s\:{uentlY, if any ri\rty or per!30hal rBpresentative of a
deoedent ahall inet!itul:e any aotion or prooeeding uo enfqroe any
provision of thif3 Agreement, any party again!3t Whom the aotion
is brought agrees that this. ,l\gt'eEll11ent mar be slJec:dfioally
enforoed by a oourt of l\ oompetent jUi.'isdiot on.
5.00.
Severabilit!y
...9...
,," iI
I. I'
, r..
MIQHA~k p, KAPI~AK I1n~1
WI~I.IAM ~I, MANNA, 'nQ\vl~\mlly An~ I'
1111 Qlwehpl~l3rll qf ~ICHf.I.I1r,RQf.f\ I
.OON13TIW(n!ON, INO" PI1 hphAIf pf I
gIOI'lf.I..~lmQf.R OON!3TR\JOTION I
INO" I
Pllllntlffu I
I
v, 1
1
WI~~IAM p, f.lcHf.~flgRQI!Rf l..~oYP I.
n, f.IOHf.~~f.RQI!R Iln~ f.IOHf.~flr,RQI!R:
OONSTRUCTION, INO" 1
DIl"m~llntll
IN THf. QO\JRT OF OPMMON PkgA~
O\JMflI!R~AND oouNTY f
rl:NNsYI.VANIA
I.AW AND gQ\JITY
()\') r~'l ~I"'" c' 'I ",
NO, "':';,11.' - \ . r '':- (.(t\~-I, "'\ ,\ I',rr"
JURY TRIAl, pgMANDf.D
NOMe TO QJlaiND.
You hl1Vllllllan auodln Opurt,lf YPU wlQh to ~Oflll1c11101lInllt tho oll1lmll set
forth In tllll following paoea, YOll mUat tl1ke Ilollon wlthlntwllnty (20) (1I1YII I1ftor
thlll Oompllllnt l\l1d Notloo lUe sllrVe~ by enterlno 11 wrltlell"ppllllrlll100 perllPnl1l1y or
byattornllY and fIIlno In wrltlno with the Oourt your dllfenllell or otJjllotlona to thll
0111111111 set forth 1I1;ll1lnat you,< You IIro Wllrnad thllt If you fall to do ao the PPQ(l mllY
propaad wlthput you and II111dOll1ant mllY !:Ie entar!'l~ ngnlnllt you py tho Court '
without further notlpo to you for pny monllY oll1lmlld In Ihfl Oomphllnt or for III1Y
other oh11m or re\laf requnstad Py Plalntlff(s), You may loae money or property or
other rlohtB Importl1nt to you,
you BHOUI,P TAKf. THIS PAPf.R TO YOUR LAWYER AT aNal!, IF you po
NOT HAVE A ~AWygR OR CANNOT AFFORD aNI!, GO TO OR Ta~I!PHONE THg <
OFFICE SgT FORTH 13El..OW TO FIND OUT WHERl: yoU CAN QET l..EC3AL Hf.I..Pl
Cumbllrland COllnty fll1r Assoolatlon
Two 1..1l.1erty Avenue
Cllrllsle, PA 17013.
(71}) 249.3166
l.e han damllndlldo 11 ustod on III aorta, 81 uBtod qulore defendersa de estlul
damnndna expuastllB en lUll paolnlls algulontes, listed tlellO velnte (20) dlas da, plAZa
nl plIrt\r de In foohn de In domnndl1 Y In notlflonolon, HlIpe fiiltn naontl1t una I'
oompal'onolnllaorlta 0 011 persona 0 oon un abooado yontreonr a la oorto an formn ,
oso.rlta Bua defenses 0 aus objoolonea 0 Inll domlll1dos 011 oonlra de au poraof'ln, Bea .'
nvlsndo que al uatod no se deflendn, In oorto tomnrn medlclns y puedeoontlf'l\lor 10
domnndn en Ilontrn suva sin previa nvlao () notlllonolon, Ademlla, In aorta puode
dooldlr 0 fllvor tiel demnndnnto y tequlero quo UlJted oumpln oom tad liB laa
'I~(i
;1'Q\l'I
,. .
,.
pmvllllpntJll qIJ !lilt ~llml1nQ!l, Ulltpq PUeQO pllrQllr qlnlll'p P !l\Hl prpplllqll~IlP \.t pHPP
nllrllPllPll Imp\'lttl1l1tl\ll pllrll Ulltafl;
I.I.f.Vf. f.f3l'A Pf.MANPA A \,IN A!30DAPO IMMf,DIATAMf.NTF., 131 NO 1'1f.Nf.
A!3a~APO Q 131 NO Tlf.Nf. f.1. PINF.RP f3Uflclf,NTf. PF.PMAR TAl. f3f.RVIOIO,
VAYA f,l~ i-t:Rf3PNA P hhAMIl PPR Tghf.FONP A hA OFIGINA cUYA PIRf.CQION
..'l:lf. f.NOUf,NTRA f.f30RITA A!3AJO PARA AVgRI~UAR DONPg f3f. punpt:
QONf3F.~UIR A~laTf.NOIA 1.f.C1Ah,
CUffipl'Iflllnd Op~mW !3l1r AlIlIPplMlpn
Two hlpIHW AVIlI1UB
Ol'lrllslll, PA 17013
(717)"~iHH31613
Telllp!1pnlll (717) gPP,1l041
MpNggS, WAhhAca & NURleK
--Ahm R, J3pynton, Jr,
I,P, No, 3aa60
Jl1mllll p, DIlAnglllo
I,P, No,62377
100.Plnll Btrellt
p,O, J3px 1166
Harrlslluro, PA 17108
1717) 232.8000
AttorneYQfor Plaintiffs
Dilled! S". >1 .~,.
"
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Pll\j!le~ ~al nPI tplll!HlI! IIlIl I1Ptlpll IP Ila !=lhfupllPlrtprll rllqulrll~ py f1l\rllfJrllph ~,O~
PI. thfll=lhllrllhf'.lI~1lr1l1 Allrollmpnl,
1 @, Tp ~lltll, ~eIIHl11QPllrl1tll~ I1lllln s.PllrpPfQllpn fpr purpOllll1l of II1IlQfl111
11\ X I1th;>l1,
" a, TIlII. a.pprppmtlon elaptlon I1l1oWll ~ql tp plHHl thll tl1X I1ttrlputllll pfltll
Inpprnll 10 It II alwehol~prll In prppprt!pn to tlw perPllnll\Oe of oyerl1l1 ahl1rt1a.. htll~ py
llIlPhllt1I1rllhpl~llr, In effllpl, till II I1I1QWa gel tp PI1Y Inppmt1 tl1X pt thll IlIWllllPlderll'
mtflll, whloh I1re IpWt1r Ihl1n f.cl',a rllte, 1\11!:lI1I1PWll gOI tp I1volfl pl1ylnfJ two IllVplll pf
Il1x on Inp~mll ~Istrlputllq l1a dlvlflendll, (JL., f.cl's oorporijte Inppme tllxl1nd It II
llharehplflt1ra' Indlvlclul1lll11lOme tt1X,
" ,
;20, ~cl'a Ilulllnfilsa I1n~ prpfltllhl1vlllnorlll111pQIlI1PI1 y(111r, Almollt from thll
bllolnnlno, the 1l\.l1l11111111l of gOI hl1ll belln proapproua with pllroeonlnQ St1I11S
oontlh\llllly proquqlng profltl.l IInd Inpomll, Thll tllX attrl\lutoll of thllt Inooma hl\ye
Plllln pllBl.led pn to the sl111rllholdertl1rouQI1 g01'1I S.oorporfltlon aleotlon,
,
21, purlno the, yet1rs 1993 throuol119(;)6, and for the flrllt,.Il11oond llnd
third qUlIrterll of 1 \)97, ~el aqvlInpod ellQh alweholder fin llmQUnt, lIbove find
beyond lIny pther oompel1l1atlon, sufflolllOt to PflY the III111rol1older'lI tllX otillOl1lloti
'I
ol1used Ily ~Ol's S.oorporlltlon eleollon,
22, . Aooordlno to EOI'1I 1997 Flnllnolal Statement, In 1997,eClllacl
$1,366,016 In .tllxetilo Inoome,
23, pua to tho B'oofporatlon eleotlon, the tllx llttrltiutel.l of. gCI'1.l Inoome
for eaoh year, Inoludlno the Inoome for 1997, wore transferred to tile shoroholdel'l.l
" ,.
6
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Appplntmllnl pf,11 JIIPAlvllr p(1nrJfmr(1Ifr(1I1I1~ A IIql1l~l1tlnQ relllllvllr, ~hpl1lq ~p
In~llt~tll~,
. 3a, Ttllll1ptll of ppnrlllllllpn pf Mr, WI III 11m f.lpllOlporOllr, WhD ,1!lln IlPl1lrol
qt!!1Q pprppn~t'pn, lire 1111110l fflrth In PllrAorl1phll UhrpuQh S;2, I1PoYIl, whlph I1rll,
"
Inoo.rporl1toq horflin py rllfllrenPQ, ThllllPtQof opprePlllol11nllluI1fl Mr, f.lphlllpllrqflr'li
Intllntlonlll rllll,reOl1rll of. tlw f3hl1reholderq' Aoroemont, Int,lll1tlpl1lll Ullll pf f.OI'1l 13-
ol'lrpllrllllon olllptlpn to. P!1U~o flnal1phllhmm tp Mr, Ka~lIl1k Ilnd Mr, Ml1nl1lll1nd
rflfulIPI to make dlstrlputlpna to. ahl1rllhplderll, All~eao.rlped In 'Oounta III, IV Ilnd V,
Polow, whlph arE! hlPprpprateq Il\lfllln Py rllfllrenoa, Mr, f.lohlllperfJor hils PIlUlleQ f.el
to bre/,\ph the Shllreholderll' Aorollmlll1t f:lI1d Ilrollohllcj hill dutlas to f.CllII1Q Itll
IIhllfllholderll,
sa, In odqlllon to the aotll of opproaalol1 nil set forth I1pPYQ, Mr, William
glo!1elllergllr fraudulontly OIlUSIIQ the oprporlltlpn to. trllnllfer large Ill,1mll of monloll
"
Into Improvemonts to the property Ilt 124 Churoh Streot,plllllllurg, Pennllylvllnll1,
whloh III no~ ownod Ily the oorpor~tlon, Rlltlwr, It Is IOlllllld from 11 partnerBhlp,
,
13l1l1c:1t1ne Proportlell, In .whloh Mr, WlIlIllm alohlllbllrQor, Mr, l<lldllllk Ilnd Mr. M~nl1ll
llre eaohone-thlrd pllrtners,
.'
40, On Informlltlon al1d hellof, It IIlIlVerrt,'ld that on other ooolllllons,
presontly unknown to the Mr, l<adllok I1nd Mr, Ml\nnll due to Mt, WtllIllm
, ~loholporoer'B deprlYh10 them of Ihformatlon, Mr, WllIlllm Elohelberger distributed
.'
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130,
In Ilnnltlon, /:01 hll!l prllllPhon..lho flhl1rPhpldllrQ' Aur\lomllnt IlY rlI1t
"
I!lQulnfJ Ulll nO\!OIl 10 !llwoholdllfQ pf II" Inlllnt npt lel puro!1I1QIl the lllwell 11f1ld Py
Mr,l<l1dlhtk 11m! Mr, M 1111 11 11 , As II r\lQull, \1111 o.lhor!lhl1r~lwl~llr!l hllVIl Pilon nonllld
101.
IhllPPflprtunlW, PUfllUanup tllll f3hllrohnlnllrll' op\lpn, to PUrnll111l1l Ihllllh!l[pq elf
Mr, Klldll/'\k I1nd Mr, Mllnnll And, prpVloe(1 tllll pro.hllllllon pn I1l1llnllPlllW Illllffllllllve
In 11111 fllpl\ of llUlll, llpnnuot, Mr, KIlf1l1llk I1nd Mr, MllnnA hl\Vll POIlI1 prohlllllo~ from
trl1nllforrlno their llharo!l.
61, l3y rOllllPn of gOl'1l c1efllult \.1nopr Ihe Shl1rall0lnllrs' Aorllllmlml, Mr,
Kl\dllllk pnn Mr, Ml\nnl1 haVll po en qenlecl thll vl1lup pf tl1Blr Inl/elltment In f.cl,
,
6:2, All prpvldoclln PArllorllph 1i,07 pf \110 Sharol1PI(lerll' Aarellmont,
~l\mlllles 11IWe aoorueq Ip Pll1lnllffs by rOl1spn of ECI'a fllllure Io.oomply With thll
Shl1reholclerll' Agrel!mllnt ~nd t/1olle clamllOl!S wlllllll dlffloult 10 f)1ellSUre In tllrmli of
mo'ney. All a rellult, thl! Sharllholders' Aoreoment exprellsly I1110WIl this Court to
.llhfproo the AfJreemllnt by speolflo perfortnl\noe,
63, Plaintiffs have no adeqUlltefelTlot1y pt low and noed ,~qultoble relief,
WHF.RF.FORg, Pllllmlffs Mlohpel p, Kadl/tlk and William J, Ml1nnlill-\ray 1I111t
' ' ,
I
this Honorable Courtl
la) Doolare that ECIIIi required to purohalle tho slwos hold by Mr,
Kadllak IlndMr, Ml1nnal ,.
'"
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(11) "1 the I1lternallva, raqlllre that ECI IsslIe the nptloo to .
shareholders of Its Intent 110t to purohase shares/
(c) Require that In oonl1eotlon With any sale pursuant to ECI'a
OPtion or the Shl1reholt1er.s' optlol1 that EClllnd the shareholders
aoree to terminate Eel's tax year l1a of the salll date and that
12
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The -'- fthnrElhclqef.'B Mree, imllleC\i!\1;~~.~-' Al!tlll~
e~aq"~ion of toi~ ^greamBnt, to pf.'e~an~ toa oertifioAte13
r~pPe~enting the ~hAre~ in the OOl:'popl\tipn o4prentlY owneel, to
t. hf,l.. ~eOl.'atAry. ol!to.e acrlJO!:'A tip.. nAnf-!. OIHI"'a the. ~e. or. I1tnl.'Y. to
",tamp on eAoh ,oertif!ol\t:ll " notl1\:ion in " :Jon~pio\.lo"~ ml\l1nlll:'
~atting . fort:h' thE! ,c\etAil13 of the rel3t:l:'iot:ion"" Ml !'let fp\."t:ll
herain.
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+.04., Previa\.lQ Shareholder, Tara"'A ^. m;\.o!1elbergar, b~ ev~n
elAtll\ hel,'Qof, ha~ gifteel' 60 !lhArEl~ 91! her fltook to M!qhAl'll P.
KAdilak And WilliAm J. MAnnA, rElIlP~6tl!\.IllY, th\.lfl leAving Teres~
A. miohelberger with no ,~hAra!l of atookin ~Aic\ gOrp9\."At!on,
The ownershi~ of the shAt'ell nol'( At'e AfI they are flet fOl;'th in the
Recital"', nAmely Nil+1Am' P. Eliohelperger .. ;\76 ShAre"" r.,loyr.l R.'
miohelberger - 60 sh~rel3, MiohAel P. KAelil"k - 100 shqre~ and
Ni.lliAIJ1 J, HAnna - 76 shat'eB, '
,
^Il tp lAst 50 ShAres of atook g!fteq fl:Om Tereaa
A. michelberger to MiohAel p. Raclilak AM Wi lHam ,J. Ml\nM,
there b a penAlty invokecl ~ho\.lld they leLW!3 01;' terminAtl'1
I'1mpJ,oYl\1ent on their own, Or if t:hay I1rEl dil3mill!led by thEl
cOrporat:a predclElnt Ancl alita, Tile PElMlty !lllall be thAt thEl 60
. shl\t'EI$ thAt both.. M!ohA',ll p, I~AclilAk Allcl Nl.l.l1am "., Manna hAVt3
been given, thEl Vl\t\.le t:hareof., whioh is $17,Oll.~O, I3hA11 be
Q\.Ibtracj:ecl .. f.rom the amo\.lnt. clue them if they t:er.miMtle tllei>.'
empJ.oyment !:lElfore 't.en (10) YElllrs ft'pm the clAtEl Qf tllei!;'
employm~nt, Whiqh h l\s follow~l Miohllf11 P,I~l\r.\UL\l\: - PAt:e of
mmPloYl\1~nt,. 1\.pril12,1993/..N.tllillm ll'.MannA" PAte of I
Employment - Janu~;ry 17, 1994. ,tloW!3ver, upon the cleath of'
eithe1;' WilUam or Miohael or if they )Jeoome il1Oapaoitatsd, th.i.a
penalty W.O"14 not apply Ancl they WoUlcl rEloeiVethe va;Lue of
their ~harEls as herElinafter eet: fot'th. .
a,01',
M'l'IO~J:1 TWO
On~IGA'l'IOlf ON aJl~lUlIlOI.OEn' II OBA'l'JI
purohal3e and Sale of Shares of PEloeas~d ahareholde~ .
'.11'1 M. WH,F.V
~ ,\SSOCL\n:s
11P!IHlYI ~t l""w
. ~Ul ~C.l
II'J~u~p~~ ,."
On t:he clElAth of any Shareholder, t:heoo~porl1tion
shall pllrohl.\~e from t:he r.\eoeclent' e person<\! representAtives, Anr.\
" . tho deoedent's personAl representatives shall sell to i, t:he
corporation, all of the Shat'es of the Corporation owned by the
de~edent At the time of cleath, aooording to this Agreement.
The remaining Shareholdet's Qhall also assume the
obligation to rElpay any part of tile originAl puroll~BepriqB fo~
...a-
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IN hi, Wlt.tV
U~OCIA TEs
11"ll/<tJ" ~ T l.\W
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PAi~ pllA~ep to ~e~~prf ~iphal~erger apnRtr\.\o\:ion, ~no" An4 the
Ill.iqa pA.t~ j!oF RAi4 PhA+Il!il !'IhAH he the net qj! the !?\.lrqhAIH:l
fl.~ipflAa qeteminel.\ '\:lelpw, leSR the Amp\.lnt:pf. Any "moll-'"
PPl1'i1Ation A!:ll'l",oeq Py I:hlilpm;,phMil19 ~hAr"'hp:\.qe);'p, .',
~Aoh ~h.rahq:\.q~r !'IhAl~ \:Ie entitleq to purphApe
, ,thAt pprt.ton of! thl:l qeol:lARe~ IlhArehplqf:\!" a ahArea Whiqh ira
prpp9rt;1I:H1Al to thl:l p\.lrphAain~1 ~llAl;,eho~qer' a parpl:lntA91:l oj!
qwntarl:lhip qf! \lhe Gorporation' p at\l\reR a~ol"Mng thoalil h\:l14py
the c\l:lol:lapeq Ilhal:'ehplqer, '
~,O;l,
Petl:ll:'mina\lion of P\\rphAl3e Pdqe
on tlll:l qaath qf A ~hArl:lho~qer \lhlil purohape prioe
PhAU \:le the VAlue of! hia or her r:ltOq~ IH:l astalalishect in
AoporqAnqe With parA9raph a,03 of t:h!p Agreement,
;l,O~'. Petl:lrminAtion of! VA1\.le of IlhArea
Th~' Yal\.le of the toh<\l:'!:1f,! of, taAPh :!:nqiViq\.l/:l1
~h/:lreholc\er to \:le aplq P\.lplIHlnt to th!a Agreement ah/:lU PI'! thf\
pOok: YlIlue of!' the sharea lIa qetel:11linl:lq' on the lllatc\I\Y of.. thf\
mont:himmeqi/:ltely prl:loeqin9 the c\ateof qeAth. ~he book; YA1\.le
ShAll be c1etel:'11lineq PY first IIddiJ19 I\a of the Vl'\1\.liltion qAte the
oapital, eUl:'~l\.la, And undiyiqeq profita,' .ft:er hAVing c\eduotec\
/:Iny t'eaervea previoualy eatAbliahec\, ~ne aum oC th,e~e .l,tllma
~hall be qiviqecl by the nUl1l\:lBtl of, ahAral'!outstanc\!ng as of that
c\ate, /:Inc\ the quotient shall repreeeht tna IJook; 'value of eAPh
shar", ,
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a.04.
Ref\\aal or Fa'uure to purohl'se by a Sh/:ll"eholc\er
In the evant thAt Any Shareholclet" ia \.lna\:lle or
unwilHng to PllrQhAse tile c\eOB/:Ia'et\ Shal:'eho~c\Elr' a sharea, A~ aet .
COrth a\:love, then the remaining Shareholc\ers ahAll \:le entitlec\
to p\.lrohaae the deoeAaecl shareholder' a aharea ill proportion to
their relative ownerShip in the Corporation, ' .
11,05,
Purohase by corporation
'.I
In the evehtthat the remaining Sh/:lreholc\Bra are
,.unwilling or UMble .to purohase all of the c\eoeased
Shareholder/s Shares, then the corporation ahl'\ll purohAsa, all
reml'\ining shares from the deoeased,lhareholder'~ eatate.
2.06.
Payment of purohaae Prioe
The p~iOB to be paid for the ahare~ of the
-3-
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~ .. t '.
~pc~A@e~ ~hArehol~er ~hAll ~a pAi~ 1n forty~aight (4")
PQD~ec\.ltive lIIonthly PAYlncn\:!i ~aginn1mlthrall (IP) month~ Aftet'
thll ~Ate o~ the dQcll~ent'p deAth. The \.InpAi~ bA1Anpe of thll
pllrchMe price phllll pe Qvi~enoec\ ~~l A ~ed~~ o~ n~'.!otiAple
pt'omip~ory notQ~ mAc\1l ~y the OOt'PorAtion to the order Of the
OetAte of the ~e90A!ied with illtare~t not to Qxq~ec\ eight percent
(oa~) A YPAr Anc\ with f\.lll privile'.!~ Of prepAyment of Ull or Any
plll:'t of th!:l prinoiplIl <\t Any tim", withO\.lt penA!ty Or ponlle, '
~l\ch nota QhAll provit\e thAt in the evant" of ~~fl1\.11t in pAYll1130t "
, of th~ pl:'inOipAl, All notOQ ~\.Ibeeq~ently ~\.Ie ShAllpecome t\\.Ie
Anc\' pAyA~le immac\iAtely, '
The purcha~a price pAYAble to the eatAt~ of the
c\f'loallsed ShArehol~er ElIH\ll be pAic\ in ctlsh, or in cAsh IInc\
notes, to bhe estAte of the c\ecellsec\shAreholdar onl
(n) The eEltnt:~ of the depeAEloc\ Shllreholder
Paoom1n'.! papAble of trAns~errin'.! to the corporAtion fUll legAl
/\nd aqtlit/\~le tax,:,frea tltle to the ~hArQ/iI of the c\Qoaa/iled
sh/\reholda~1 and
(b) palivary to the seoratAry of the Oorporation
of the pertificAte representin'.! ,the Sharea Of the" dapeAaeQ
Sh/\reholc\er properly endot'SBc\ in the \llannor reqtl1rec\ to transfer
full legAlanc\ eq\.litAble tAK,:,free title of those shAres to the
qorporation.
2.07.
Costs of performance
'The estate of the c\eoeAsec\ Shareholc\er ahAll
bear, and ahall hold the COl'porA, tion hArm;I.eeQ from/ all "oosts,
and eKpenQea required" for secllring any ocurt orC\era, court
deoreel'l, pourt I\pprovala /.. inheritAnce tax oleal'anoes / and eatate
tnx olearances raquiredto enable the estate of the deoeneed
Shareholder to tranafer to the corporation fUll legal, anc\
eqi.\itable tax"frElo title to the Shures' of . the c\eceaaec\
Sha~eholder in the corporation.
2.00.
Eatate ~f Deoenaad Shareholder Oefinec\
;I'
',\N M. WU.E~
I ,\~8IlCl^ Tf..'I
nu....tYl M I~W
I .~RUI QRctl
"I."URlI, r~ '"11
'l'he term "estate of the c\edeasec\ Shareholder",. aa
uead in th.la Agreement, shnll inolUde aa those terms are
tlndarstooc\ Under the laws ,of tho Commonwealth of Pennaylvanin\
(n) The personal ~apreeentative of the estnte of ,
the deoeased shareholder.
(b) The surviving joint tenant of tha c\eceas~c\
-4-
:1
"
~
I^N M, Wll.EV
.\ ,\BSllCI,\ TE.'
Il1f/lII<llqll.\"
I *~kll qOr.LI
111~iUOf/, ,~ 11111
,,'
If .
I I.
!lhAVlll\ol~!iJ:' whlln ~hArell o~ tho OOl:'POVA\:ipn Are ownel=\ Py thll
qI'!P~H\.~!if.\ ~hAVllholqIlV. AmI A pl'H.'llonwho ~.!! M\: Aot~VQ in tl1(il'
p~~inell~ of ~hll oorporAtion ~~ ~o~nt tenantll, .
. (0) My othllr peril on whlJ may I peOA~!le ol! the
QO\l1m\.lnity Pl:operty or othlu' lAW of Any j\.\ri~qiqt~cm, AQq~il:'e'
w~tho\\t ~ormAl proPAtl! PVoQeet\~nq~ AllY right, tit:J.el QJ:' int:fil.tll!lt
~n ov to, thll ~harllll of tho ..doOQAlled ~havol\qf.\ar in thll'
QorpoVAtion peQa\.\~o of tho cleAth of the ~hal:'oholdoV\
~,P9, olo!ling
Whll oloelng of the p~rohalle and the !lale ~hAll
tA~o,plAOo At th~ offiQe qf the ooVporation At a date t\ellignA\:lld
Py thll qorpovation, whioh ShAH not pe more .than l~P ~aY!l
fOllowing the c\ate ell! the qualifiQation of the peVIlOnAl
l:'ep:rellentative, ard not lef.lll. 'thAn ce. n t\AYfl. follow~n.g that t\l\te I
Howevor, the olo!,! ng /lha 11 take pll10e r regart\lella of thll t\a te qf
qual!fiol\t!o!l Of the personal reprel:lentl\t!ve!'!1 w~thin l3il< month a
~f the qa\:e of the death Of thll qeceqent,
"a ,"10,
Inability or unwillill9nesll to Pq:rqhalle
'. If the aorporat~on hl\1:l infiluffioient el\rl1eq
surplll!'! to permit the lAWfUl pl\rohase of the ~I\ares, ov if tllll
qorporation is otherwille unable or vefu!'!af.l to 'p\.lrOnl\ae f1.~1 of
t:ha deollt\ent's ShArefil, the oPligl\tion of the oarpoVl\tion with
reapeot to the Shl\rell Ilhall pe deemacl as!'!\.Irneq proportionately Py
the rmrviving Shareholderl'!,' . .'
3,0;1.,
l\~TICJ.mTH~mE
'l'RI\NSFER OF SIll\Rl!:a pORING SII1\llEHor.,Pli:IV S LIli'E
pirst ~UVohase option .
,,'
J;f l\nY sharaholderde'aires to. dispose' of any
Shares in the corporation during' his 01.' het' lifetime, the
Shareholder shall fir!'!t offer to aell the Sharefil to the
corporation and the other ahareholc\ers Py giVing them '~1:'it\ten
noti~e to that effeot, The notioe must spedlfy the number of
Shares offerer.\ for sale and must be given in the manner
pl.'escrlbec\ by paragraph 6.09. The corporation ahall hal/e the
option for thirty c\ays after reoeipt of the noUoe to purohase
,any or all of the offered Shares ,at the, prio.' eatabliehed in
lIdcordance with Artiole TWo ofthia Ag):'eernent, "
3,oa.
S~oond Purohase option
-u~
t I' t
,."
It\N hi, WIU;V
.\ MSllCIA Tf_~'
\l10!U<klqT I..\W
1'~~1I l1~Clt
11Il.>'URll, " I"'''
I" (
, At tlll1 ~wl pf? it" ppt:ion peripq, t,l1ll OPfPPfl\tipl1
!llll\ll not.il!~ j:1l~ ~hafeholqer" of An~ m\lllper pf /lhl\re!lij: hM
e~ectfa(:\ Mt ,t,P p\.1rotll~, se I All, (:\ tho /lhArel,lPlele!."s "l'l,hI\U,hA, VIl the
oPtion fpr thirty cl/'\Ys AftllV t:hAt npt:if~OAt.ipn to P\.It'phA!le ,All
pI! the IlhAVelil offl1rllQ fpr I'IAlo npl: purohA!leq P~ the' Op~'pprAticll1
At the p*iol1 IllltAbli!1hoq in /.\OPo!:'clAnoe with PAl:'A9fAph ,~, o~
c\e\:el:'mineq 1\11 of the elAte Q~ the not!pe given \.1nQar PAl:'Agrl\ph
6,011, lilAI'll /lhllfllholc\l1r IlhAll hAve the l:'ight tq p\.1:l,"o!lnlle tIle
,portion of? the /lhAroa offereq for 1l1l1e All then\.1mber,Qf IlhA~all
ownacl Py him o!:'her At thAt time ahAll pal-\!': to tihe t;ptAl n\.1mper
of/lhAl."el'lOWneq by, 1111 the qthllr ilhAreholqer!3 exol\1c\irig the
Elallin9 ~hlll:'eholqafl IIPweverl.: it: M~ IlhAVaholqel:' qO/.lEl nqt
p\1l:'phAlleh!a pr her f\.1l1pvoppr'ipnAte !\llotment Of the IlhA~/.lIl,
,the" \1l11\ooeptecl' /lhllraEl' nHW 'be pUrohl\I'Iaq Py the other
ilhAreholclerll, Jf All of the ofeel."ecl ilhArel'lAre not puroh/.\I'Iacl by
either the Obrpor/.\tio,n or,the /lh/.\l:'eh,Olcl,er!ll or ,both, b,efPl."etha
expirl\tipn of the Eleooncl option perioq, the I'Ie11ing I3hl\r!:\holdar
IlhAll pe unqer no oplig/.\tiqn to aell Any oCthe oCfe~ed Ilh~rell
to the Govpor/.\bion or othel:' PhA~~holqer~ b"t mAY ~iapo~e P~ the
/lhA~ea in /.\n~ l~Wful m/.\l1ner,
~ ,0:\, P/.\Yment pf Purol1AEle I~doe
ThE\ puroh/.\Oe pdoe ~or Any Ph/.\re~peing ~ql~ l~y
the ph/.\rehol~el:' un~er thi~ Avtiole ~hAll pe pa~d in forty~ei9ht
(40) tlolll'leouUVe monthly p/.\Y\11enta ( beginning three (0:1) monthll
from the ~Ate of the IlhAreoolqar leAving thE! oorpol'atiqn, The
unpdq bll'lC\nce of the purcl~asa price IlhaU pe evi~E\noeq pya..
aeries of negotiable pl:'pmisaory notee ma~e by the OorPQution to
l;he prdel' of the, Sh/.\roholc\er I with inteve13t not to ol(ceec\ eight
peroent (00%) a year An~ with fUll Pl."ivilege of prepaY\11ent of
1111 or any PAvt of the p~incipAl at Any time without penalty Or
bonus, mach note shall provi~e that in the event of ~efAult in
. parment of the prinClipal I all notoa SUbsequently clue llhall
beoome qUe anr.\ payaple imme~i/.\tely, . .
The PUroh/.\se prioe PAyable to the Shl\reholdet'
shall papaid in oA~h, or in caah an~ notes, to the Shareholder
uponl'
. '(a)' The SharBholdnr Peoom.tng oatlal)le of
trknsferring to the Corporation full legal and equitable tax~
free bitle to the Shares. to po PUrchasec\/ and .
(b) Daliver~ to tho SecratarY'of the Corporation
qf the oartiCiaate rBpresenting the Shares of the Shl\reholderi
properly an~orsed in the mllnner required to transfer full lllga
And,aqu table'UaX-free title of those shares to the torporablon,
"6-
",
"
I . t f
1.1// M. Witt\'
\ .lssllel" n:.~
Iw~~tVI" UII'
"~~U1 L1lCl.t
'II.IU~Q.'~ ,t"
. -
I '" (
3 ,Q~, PWl.'ohAIHl Pr!OI3 pn Tl3rm.tnAt:ipn. of! ~mp+o~pn~,
!i4~P"'lPt py 1~I3t:irl3ment pl7 Pllfil \;p permAnl3nt PhH\piliW.
, . 9n ~hl3 tpl7minAt:~on QC 13mp+oYll\l.mt oC.. Any
~hArpholder othel.' thAn due to ~hArl3hpldl3rll3 rot:~rl3ml3nt Or
pel.'m. Anant:diIlA.pility AS da. Cin.l3d h.erI31n~ All .ShArl3.s Ownodpy ~4.e
tlhAl:'eholqer 1lI\l\1+ pa llo.1,.eI and pm:ohAlle(;\ Af! provic\eq ~n l'tl:'j:iplo
Thrall of! t:h11l Mrllement I aXOllptl 1;11111:; thl3 ~hAref! Ilhll:L1 PI3 VI\+ueq
As of! thp lallt regUlllr valUAt:!pn As f!l3t fprth in ~ohedule ~^"t:o
t:hill MreemElnt:, put: it! no VA lue hAil poan sp aat forth py the
~Art:,tl3s hereto, then At: pook VAlue ~f,I aetf!ortll in l'trt1olQ 'l.'wo
heraof. ~et.t.~pmQnt for s.UPh PUrohA.sa A.nd sA+13 ehAll PO held
wit.hin l~O dAYS oil thl3 dAtl3 of tElml1inA~ion of! amployman~1 And
wi~h pAyment of the f/urohAse p\.'ioa As !'let ~or,th. in l?arAr;lX'Aph
3,Q3 hElreof!, ..
PurohAee Price on Retireml3nt or permAnentPisAPility
On the. retirement: of A ShAreholdav, or on
tel7l11illAtiph of employml3nt of A ahAreholdl3l:' Py the corporAtion
due to permOlnont dis<lpili ty I <Ill ahAres own eel by the ~hAreholder
al1All. pe sold C\nd ,purch<lsed <Ill providl'1cl in IIrtiQl,e 'l.'hrea of this "
IIgreeml3nt, e~oept thC\t, in thl3. oaae of retirl3ment, the Bh<lr~e
sOAll pe VAlued liS of the 1l'\$t dl'\Y of the month immecllAtely
preoeding the dAte of retirement. Sattlementfor auoh purohAae
alld aAle shalt be beld ~ithin 120 dAYS of the date of retirement
or the dAte upon .whioh /3hAraholder ~a determined to be
pel:l11llnently elj,sAPled, anel with paYment of the PUrChAae pll'ioEl as
SElt forth ~n pAragraph J,03 herElof~' .
3 t 06 ,
"
3,06"
Definitions
lletiremen1;
" .
The term "retiromanttl in thin Agl,"eement.. ehall
mean the voluntary withelrAWAl from Activeconduot of the
pusiness of the corporation Py asharaholeler who h<ls attained an
/lga great!lt' ,than sixt:y~two (6:1) yeArs or .:\ge as oJ; the elate 'of
the termination ~f his employment,
Permanent Diaabiliti
The term "permahent elisability" aa uaeel in this
IIgt'SIln\ent shAll mean any physioal Qt" mentAl condition a.f.feoting
any aignfitory to thie Agreement to suoh extant that he or she is
no 10llger able to perform the usual and cuatomAry seX'vioea for
the Corporation, and such disability haa existed for A minimum
period of tWelVe (l:!) months at tha.. discretion of the nQn~
"
"
M7-,
, 11 t
~ "I'
,. (
Wh~inv~~i~i,y a~ unenfaro~~~ility of ~ny
p):lpvi",~.pnl'l pf.. .\:hi", , Mr~HI\1len\: I'IhAP, no\: ~ffIlP\: Any at-her
in...avif.'l',tpn!'i, Tile Mr!l~m~n1:. "'hAll l:)e Opnl'ltruect J,n alt raf4P",pt~ A'"
'if th~ 1nv~li~ pr "nenfprA~ahle provil'l!on", War~ omitted,
Il, Ptl,
I
Prior Mr~~m~n\ll'l
"
Ttl!f:l l\gl;'aamfiln1:. panl'lti1mt~f:l 1:.he p'nlY ~9raem!lnt of,
the PAr1:.!a", raf:lpep\:inl1 tile f:lllla AM PurphA",a Pf \:l1ail;' I3hAr~'" in
th~ OOrpOl:'At!an I\n!:\ aot'raptly l'l~\:I'I forth t;ha r19hl111, !:\\.\Ue"" <wI
o~li9",Manf.lof eAoh 'to tha other AI'I of the' elAte Ofthi",
~q):leemant, Any prior a9ra~mQnt", mAde patW~~n 1:.ha I3haraholder'"
An~ the Qo:rpot'll,tlion ~ffapt!n9 thEl I3IH\:ral3 a~ the Qprp9rllt!pn ArE!
terminAtEld P!( thb' I\g'reemant; "
,,'j,
~~~o\.\tEld At
, 1996,
an
Pillap~H"'CJ ,
PannsylvAnb,
N.l'TElI3'.1! I
. BElRG~ft7"
" ,
"
JAN M, IVII.EV
.. .\SSOCli'Tf..'l
11'.'O~tYI AT l.\\y
' IIA~1.Q qoclt
i1L1~IU~Q, r^ 11011
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WII,I,II\M J, MI\NNl\,lml\vllhlllllY IInll
II~ 6hIlIPhl1lll~rll nrmeIIHI.IHIIWI1H
QONWmlJCJl'loN, INC" Ill' huhllll' Ill' .
llICllIll,IIlWllll\ ('oNH'I'IIIJr'l'loN, IN(~"
i \lllllnnrl's
,I
v
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11101\rlI.nflllmm 1111I1 ntC'11I1I,\l\llI(lHl\
(!ONI1TI\\JCI'ION,INO"
I,
pul'olllhlllls
"
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I' c\JMUm\I,I\NP CP\JN'I'Y, PI1NNIlYI,VI\NII\
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ANI> NOW, Ihl~ ,:'~l'f\IIIY nr Jllly, 199",1 huruhy vorlry 1111111 hllVo 011116011 'limo 1111\1 olll'l'uuI onpy"
nr Ihu lMun,'llIllls'l'l'olhnIIlIlI'Y ()hJ~I:\Inllsll1 tho 1'11111l111TH' I\lIwllllull CI1l11plllll1' Ip hu plllootl h', IIw U,/'l, 1111111,
11Is1 ,>lIIHH, pl1sllIl\O pl'upllhllllllllllllll'uHHUlllIH I'nllmvHI
"
I\llIn II, Ill1Ylill1I1, JI'" I1Hqlllru
JllnlUH p, j)ul\nllulll, Ils\]\lll'u
1I1'\I\IU II, HploUl'i Ils\]\lll'u
MuNuus, WIIIIIICU ,'lL Nmlck
100 I'lllu HIl'uul
1 1111'1'1 sh\l I'll, 1'1\ 17101 ,I
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(;ONIlTlmQ:I1PN, INe" \lll llUhlllfllf
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v
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fllcJmr,l1ll1~nUl\ 1lII1IIl1Clml.IUlHOfJH
CONIl'I'IWCI'IPN,INc" ", .
POrOl1dlllH~
ANP NOW, Ihls
(111)' Dr
,,",.,,
,HI\. Po ~ 1~~
~
I IN Tim (X1\JWI' or COMMON J1j.IlM
I C\JMlml~I,ANP C0I1NTY,111;NNIlYI.V ANIA
I
I
I NO, 0<<-7047 11(11111)' Tpl'Ill
I,
I
I JlJHY TH'AL PUMANDIlP
I
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Olmgl~
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Pl'olhnlnlll')' Oh.locHDI1S Dr tho Pofomllll1ls III PllIll1l1ffs' Amolldod Compll1lm liro OMNII'UD,
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II,,^QIlI~.~'W'.. ~'/"
'1'1 mOP6i{1l II, ~Pf.m~, IlHQuiml
AIlurnll)' f,p, Nn, 16~fi7
TlloMlI1l 0, W/I.I.IIIMH, 1l,~QlJ/lm .
IIllurnu)' I,P, Nil, 670H7
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CIII1lP 11111,1'11 1101 HM2
(717) 7(i3, 13H~
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IItlllrnll)' l.Jl, No, 06~9H
.. WILHY & 1.IlNoX, I',C,
Onu Honlh llnllllllllru Slruul
PllIslw/J, "A 170 I \l
(717) ~32,\l(i(j6
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WII.I.IAM J, MANNA, Il1\lIvhllllllly nl1\l
n~ ~lInrphlll,lurs Ill' IlIcIIlJI,IIIlI~nlll~
t91lMTB\JOT10N, INe" nn l1ellnlfpf
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IlIclllll.llIll~qrm nll(l mClnll.IIUIlClIll\
CONH'I'IHIC'I'IPN, INe" '
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: 11'1'1'111I (cOI 11\'1' (IF COMMON I'WAH
: (.~lJMllllllf,ANP COllNTY, PllNNHYI.V MIA
I
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I NO, !lH.21l421l'l"IIY Term
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(mn'I'III'IC.ATl~ ()II HI~I!YJ.GJ.t;
i\NU NC>W, IlIls 16t!lllnyn(')llI\p, IOIlH, I hurchy verify Ihnll hnvo lllnlsud nlrllu nml cnrrepl copy
Ill' ihe Purunllnnls'l'rellmlllnry Oh.luolllllls tnlhe Illnlnllffs' Cnmplnlntln ho plllolld 111 ii'lUU,S, 1111111, first
t.",
"
OIIlSS, postllgo prupnld 1I11llllllllrussod liS r\llln\Ysl ,
AIi!n 1\,lloy",on, Jr., US1111lru
JlIIllosl', PoAlIgoln, Ilsll\llro
UnlclIlt, Splcor, HSlflllro
McNoos, \Vnllnco & Nurlok
f(l() 1'1110 Slrool
IllIrrlshllrg,I'A 17101
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