HomeMy WebLinkAbout01-2494 F
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY
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PEN NA.
STATE OF
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GEORGE A. IDNTON,
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01-2494 CIVIL TERM
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Plaintiff
No.
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VERSUS
KIM L. HINTON alk/a,
KIM L. KlJHN
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Defendant
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DECREE IN
DIVORCE
ceQ,wCk\ \ '-\ \
GEORGE A. HINTON
, IT IS ORDERED AND
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2006
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AND NOW,
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DECREED THAT
PLAI,NTIFF,
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KIM L. HINTON alk/a KIM L. KUHN
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, DEFENDANT,
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ARE DIVORCED FROM THE BONDS OF MATRIMONY,
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THE COURT RETAINS JURISDICTION OF THE FOLLOWING CLAIMS WHICH HAVE
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attached hereto are incorporated herein but not mer
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~~~~~~~~~~~~~T~~TT~T~TTTTTTT~TT~
BEEN RAISED OF RECOR!} I~_~HIS ACTION FOR WHICH A FINAL ORDER HAS NOT
YET BEEN ENTERED; tvt)'t\Q.
The terms ofthe parties' Property Settlement Agreement dated January 16, 2006, and
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PROTHONOTARY
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1" 1
~GESETTLEMENTAGREEMENT
THIS AGRF;EMENT, made this / it? ck<- day of ...k V/UC(rr ,2006,
by and between KIM L. KUHN, (hereinafter referred to as "Wife") and GEORGE A.
HINTON, (hereinafter referred to as "Husband").
WITNESSETH:
WHEREAS, the parties hereto are Husband and Wife, having been married on July 9,
1999, in Dauphin County, Pennsylvania; and
WHEREAS, the parties were separated on or about November 12, 2000; and
WHEREAS, no children have been born to the marriage; and
WHEREAS, certain differences, disputes and difficulties have arisen between the parties
as a result of which they intend to live separate and apart for the rest of their natural lives, and
are desirous of settling fully and fmally their respective financial and property rights and
obligations as between each other, including, without limitation by specification, the settling of
all claims between them relating to the ownership and equitable distribution of their real and
personal property; the settling of all matters between them relating to the past, present and future
support, alimony, alimony pendente lite and/or maintenance of Wife by Husband or of Husband
by Wife; and, in general, the settling of any and all claims and possible claims by one against the
other or against their respective estate.
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NOW, THEREFORE, in consideration of the mutual promises, covenants and
undertakings hereinafter set forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the parties hereto, Husband and Wife,
each intending to be legally bound and to legally bind their heirs, successors and assigns hereby
covenant, promise and agree as follows:
1. SEPARATION
Husband and Wife shall at all times have the right to live separate and apart from each
other and to reside from time to time at such place or places as they shall respectively deem fit,
free from any control, restraint or interference whatsoever by the other, subject to the further
provisions of this Agreement.
2. HUSBAND'S DEBTS
Husband represents and warrants to Wife that he has not and, in the future, will not
contract or incur any debt or liability for which Wife or her estate might be responsible and shall
indemnify and save Wife harmless from any and all claims or demands made against her by
reason of debts or obligations incurred by him.
3. WIFE'S DEBTS
Wife represents and warrants to Husband that she has not and, in the future, will not
contract or incur any debt or liability for which Husband or his estate might be responsible and
shall indemnify and save Husband harmless from any and all claims or demands made against
him by reason of debts or obligations incurred by her.
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4. OUTSTANDING JOINT DEBTS
Husband and Wife acknowledge and agree that they have no outstanding debts and
obligations which were jointly incurred by them during their marriage with the exception of
those which are set forth elsewhere in this Agreement.
5. LIABILITY NOT LISTED
Each party represents and warrants to the other that he or she has not incurred any debt,
obligation or other liability, other than those described in this Agreement, for which the other
party is or may be liable. A liability not disclosed in this Agreement will be the sole
responsibility of the party who has incurred, or may hereinafter incur it, and such party agrees to
pay it as the same shall become due, and to indemnify and hold the other party and his or her
property harmless from any and all such debts, obligations and liabilities.
6. DISPOSITION OF REAL PROPERTY
The parties acknowledge that neither party acquired any real estate during their marriage.
They further acknowledge that each of them acquired, individually, an interest in real estate prior
to their marriage, and consequently consider their respective real property to be their separate
property, More specifically, Husband shall continue to be the sole and exclusive owner of the
property situate at 16 East Locust Street, Mechanicsburg, Cumberland County, Pennsylvania and
Wife shall continue to be the sole and exclusive owner of the property situate at 7 Eastwick
Court, Carlisle, Cumberland County, Pennsylvania. Each party hereby waives and relinquishes
to the other, any right, title or interest in and to the real estate of the other.
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7. DIVISION OF PERSONAL PROPERTY
The parties agree that they have divided their separate and marital personal property to
their mutual satisfaction. As of the execution date of this Agreement, any and all property not
specifically addressed herein shall be owned by the party to whom the property is titled, and if
untitled, the party in possession. This Agreement shall constitute a sufficient bill of sale to
evidence the transfer of any and all rights in such property from each to the other.
8. AFTER-ACQUIRED PROPERTY
The parties shall hereafter own and enjoy, independently of any claim or right of the
other, all items of property, real, personal or mixed, tangible or intangible, which are or were
acquired by him or her after the parties' date of separation, with full power in him or her to
dispose of the same as fully and effectively, in all respects and. for all purposes, as though he or
she were unmarried.
9. MOTOR VEHICLES
The parties acknowledge that the 2001 Audi A4 is owned by Hinton & Associates, Inc.,
and the 1992 GMC Sonoma truck is owned by Husband. The parties hereby agree that the Audi
shall remain the property of Hinton & Associates, Inc., and the Sonoma truck shall remain the
property of Husband. Husband shall be entitled to exclusive possession of both vehicles.
The parties further acknowledge that the 1999 Kawasaki Drifter motorcycle has been
sold, Wife shall make no claim regarding the motorcycle.
The 2001 Audi TT which had been leased by Hinton & Associates, Inc., and driven by
Wife was turned into Victory Auto for lease end processing on October 29, 2005. No claims
shall be made by Hinton & Associates, Inc., or Husband regarding said vehicle.
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10. FINANCIAL AND INVESTMENT ACCOUNTS
The parties hereby agree that Husband shall retain as his sole and separate property, free
of any and all right, title, claim or interest of Wife, the financial and investment accounts which
appear below:
a. Members First Federal Credit Union checking account #183469;
b. Legg Mason Value Trust account #294-1560526111;
c. Legg Mason Opportunity Trust account #1189-1560526111;
d. MunderNet Net A account #0002851418;
e. 'Internet Fund account #067-067-6700206403;
f. Fidelity Roth IRA.
The parties further agree that Wife shall retain as her sole and separate property, free of
any and all right, title, claim or interest of Husband, the financial and investment accounts which
appear below:
a. Members First Federal Credit Union savings and checking accounts; and
b. Comerica 401(k) account #272625.
11. CASH PAYMENT
In consideration of and for Wife's waiver and relinquishment of all rights arising from
their marital relationship, including but not limited to the conveyance to Husband of her interest
in the business known as Hinton & Associates, Inc., the marital investment funds, and as
otherwise set forth in this Agreement, Husband shall pay to Wife the sum of $80,000.00 in full
immediately upon execution of this Agreement and after all company-owned documents and
equipment, so defined in this Agreement, have been transferred by Wife to Husband.
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For the purposes of this Agreement, company-owned documents and equipment
shall be defined as:
a. 2003 Accounts Payable, Accounts Receivables and Service Files;
b. 2004 Accounts Payable, Accounts Receivables and Service Files;
c. 2005 Accounts Payable, Accounts Receivables (Husband
already has the 2005 Service files);
d. UPS Scale;
e. Easy Pass;
f. P.O. Box key;
g. Checks;
h. Check card;
i. Vendor Certification binders;
j. Bank Stamp;
k. Return address stamp;
1. Kelly's personal computer;
m. Tax files and bank statements for 2003, 2004, and 2005;
n. Any other customer files, documentation and the like in Wife's
possessIOn;
o. Company letterhead and envelopes in Wife's possession.
12. HINTON & ASSOCIATES. INC.
Subject to the further provisions of this Agreement, Wife hereby relinquishes any and all
right, title, claim or interest that she may have in the business known as Hinton & Associates,
Inc. Wife shall sign any and all documents necessary to effectuate the relinquishment of any
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legal or other interest she may have in and to the aforementioned business. Husband shall retain
all right, title and interest in and to Hinton & Associates, Inc., as his sole and exclusive property.
Husband shall be solely responsible for all of the debts, obligations and financial
commitments of Hinton & Associates, Inc., including but not limited to the M&T Bank loan and
home equity line of credit. Further, Husband agrees to hold Wife harmless from any such
obligations and shall indemnify her from any and all expenses individually incurred by him
arising out of the business obligations. Husband shall take all steps necessary to have Wife
removed from the M&T Bank loan and any other obligations of the business on which her name
appears immediately upon the execution of this Agreement. Husband shall immediately take all
steps necessary to have Wife's name removed as a responsible party from all credit line
accounts, vendor/manufacturer accounts and any similar accounts, including, but not limited to,
M&T Bank, Ingram Micro, Hewlett-Packard, IBM and Cisco. Husband shall provide Wife with
verified documentation of the completion ofthis process within thirty (30) days from the date of
execution ofthis Agreement.
Wife shall provide Hinton & Associates, Inc. with documentation that the company
Capitol One credit card has been transferred into Wife's name, and Wife will be the sole
individual responsible for any current or future balances due.
Husband has neither contacted nor has been in contact with a prospective purchaser of
Hinton & Associates, Inc.
The parties acknowledge that contemporaneously with the execution of this Agreement,
they have executed a Stock Purchase Agreement in furtherance of the applicable provisions of
this Agreement.
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The Company shall retain the following telephone numbers; 717-258-1573, 717-241-
9371, and 1-866-446-8667. Wife shall retain her personal telephone number (717-241-0700) and
long distance NTE, both of which shall be immediately transferred into her name. Wife shall
also retain her DSL line with P A.net and Sprint at 7 Eastwick Court, which shall not be cancelled
and shall be immediately transferred into her name. No other location of Hinton & Associates,
Inc., serviced by DSL will be transferred into Wife's name for payment reasons. Wife shall
retain all DSL equipment at 7 Eastwick Court. Wife shall be responsible for the costs associated
with the transfer of the DSL Internet connection into her name alone. The Company shall
remain responsible for costs and expenses of the following through and including the date of
execution of this Agreement: CTI (DSL), Cingular (cell phone), Sprint (4 telephone lines), and
NTE (long distance service) The charges associated with Wife's cell phone shall be transferred
into Wife's name effective the day following the date of execution ofthis Agreement.
Immediately upon execution of this Agreement, Husband shall provide Wife with
activation keys to ensure that all application software described herein and currently installed on
Wife's personal computer will be legally licensed: Norton Internet Services, Norton Antivirus,
and Microsoft Office Professional. Husband shall purchase a new CD burner for Wife for her
personal computer to replace the CD burner he removed from Wife's personal computer.
Hinton & Associates shall continue to provide medical insurance coverage for Wife as
presently provided under the group policy with Health Assurance and Guardian for a period of
one (1) month after the parties' execution of this Agreement and the Stock Agreement.
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Husband shall not submit a forwarding request of mail from Wife's home address, 7
Eastwick Court, Carlisle, P A 17013. Any mail addressed to the company received by Wife at
her home address shall be promptly delivered to the Configuration Center.
13. PENDING LITIGATION
The parties acknowledge that they have been involved in certain legal disputes involving
Hinton & Associates, Inc., and Homesale Realty Services Group, Inc., Homesale Real Estate
Services, Inc., Homesale Settlement Services, Inc. and Shannon Terry. The parties further
acknowledge that said legal disputes have been fully and finally resolved pursuant to the
execution of Mutual Release by Husband and Wife and all of the parties referred to in this
paragraph. Wife hereby waives and relinquishes any right, title, claim or interest she might
otherwise have in and to any settlements or awards Hinton & Associates, Inc. or Husband have
received as a result of the aforementioned or any other legal actions regarding the business.
14. APPLICABILITY OF TAX LAW TO PROPERTY TRANSFERS
The parties hereby agree and express their intent that any transfer of prOperty pursuant to
this Agreement shall be within the scope and applicability of the Deficit Reduction Act of 1984
(hereinafter the "Act"), specifically, the provisions of said Act pertaining to the transfers of
property between spouses and former spouses. The parties agree to sign and cause to be filed
any elections or other documents required by the Internal Revenue Service to render the Act
applicable to the transfers set forth in this Agreement without recognition of gain on such
transfers and subject to the carry-over basis provisions of the said Act.
15. BANKRUPTCY
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It is hereby understood and agreed by and between the parties that their obligations
pursuant to this Agreement shall not be affected by any bankruptcy proceeding involving the
parties individually or Hinton & Associates, and shall not be deemed to constitute or be a
dischargeable debt in any bankruptcy proceeding. Both parties warrant that he/she has not
heretofore instituted any proceedings pursuant to the Bankruptcy laws nor are there any such
proceedings pending with respect to him/her or Hinton & Associates that have been initiated by
others.
16. TAX RETURNS
The parties acknowledge that they have heretofore filed certain joint income tax returns.
The parties hereby agree that in the future, if any penalties or interest or any liability for failure
to declare income or as a result of disallowance of a claimed deduction shall be assessed by the
United States Internal Revenue Service, Commonwealth of Pennsylvania or other taxing
authority, said penalties or interest shall be paid by and solely attributable to and be the
responsibility of the party failing to declare said income or claiming the deduction. In addition,
the responsible party shall indemnify, defend and hold the other party harmless against all tax,
penalty and interest payments, as well as attorney and accounting fees incurred arising from the
failure to declare income or disallowance of the claimed deduction. The parties further agree
that each will immediately forward to the other a copy of any deficiency notice or other
correspondence received by either of them from the Internal Revenue Service, Commonwealth
of Pennsylvania or other taxing authority, concerning tax years for which a joint return has been
filed. The responsible party shall have ten (10) days after receipt of notice to either pay the
taxing authority or defend the innocent party against the taxing authority. Thereafter, the
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innocent party shall have the right to secure hislher own counsel and the responsible party shall
pay the reasonable and necessary fees thereof.
17. DISCLOSURE OF ASSETS AND WAIVER OF PROCEDURAL
RIGHTS
Each of the parties hereto acknowledges that he or she is aware of his or her right to seek
discovery, including, but not limited to, written interrogatories, motions for production of
documents, the taking of oral depositions, the filing of inventories and all other means of
discovery permitted under the Pennsylvania Divorce Code, as amended, or the Pennsylvania
Rules of Civil Procedure. Each of the parties further acknowledges that he or she has had the
opportunity to discuss with counsel the concept of marital property under Pennsylvania law, and
each is aware of his or her right to have the real and/or personal property, estate and assets,
earnings and income of the other assessed or evaluated by the Courts of this Commonwealth.
The parties do hereby acknowledge that there has been full and fair disclosure to the other of his
or her respective income, assets and liabilities, whether such are held jointly or in the name of
one party alone. Each party agrees that any right to further disclosure, valuation, enumeration or
statement thereof in this Agreement is hereby specifically waived. Each party warrants that he or
she is not aware of any marital asset which is not identified in this Agreement. The parties
hereby acknowledge and agree that the division of assets as set forth in this Agreement is fair,
reasonable and equitable, and is satisfactory to them. Each of the parties hereto further
covenants and agrees for himself and herself and his or her heirs, executors, administrators or
assigns, that he or she will never at any time hereafter sue the other party or his or her heirs,
executors, administrators or assigns with respect to this divorce, alleging that there was a denial
of any rights to full disclosure, or that there was any duress, undue influence or that there was a
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failure to have available full, proper and independent representation by legal counsel. The
parties acknowledge that a breach of this Agreement does, however, remain actionable.
18. ADVICE OF COUNSEL
The provisions ofthis Agreement and their legal effect have been fully explained to Wife
by her counsel, Paul J. Esposito, Esquire; and to Husband by his counsel, Maria P. Cognetti,
Esquire. Each party confirms that he or she fully understands the terms, conditions and
provisions of this Agreement and believes them to be fair,just, adequate and reasonable under
the existing circumstances.
19. WAIVER OF ALIMONY. ALIMONY PENDENTE LITE. AND
SPOUSAL SUPPORT
Husband and Wife hereby expressly waive, discharge and release any and all rights and
claims which he or she may have now or hereafter by reason of the parties' marriage to alimony,
alimony pendente lite, spousal support and/or maintenance or other like benefits resulting from
the parties' status as Husband and Wife. The parties further release and waive any rights they
may have to seek modification of the terms ofthis Paragraph in a court of law or equity, it being
understood that the foregoing constitutes a final determination for all time of either parties'
obligation to contribute to the support and maintenance of the other.
20. COUNSEL FEES. COSTS AND EXPENSES
Each party shall be solely responsible for his or her own legal fees, costs and expenses
incurred in connection with their separation and/or the dissolution of the marriage and the
preparation and execution of this Agreement.
21. WAIVER OF INHERITANCE RIGHTS
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Unless otherwise specifically provided in this Agreement, as of the date of execution of
this Agreement, Husband and Wife each waives all rights of inheritance in the estate ofthe other,
any right to elect to take against the Will or any Trust of the other or in which the other has an
interest and each ofthe parties hereby waives any additional rights which said party has or may
have by reason of their marriage, except the rights saved or created by the terms of this
Agreement. This waiver shall be construed generally and shall include, but not be limited to, a
waiver of all rights provided under the laws of Pennsylvania or any other jurisdiction.
22. WAIVER OF BENEFICIARY DESIGNATION
As of the date of execution of this Agreement, unless otherwise specifically set forth
herein, each party hereto specifically waives any and all beneficiary rights and any and all rights
as a surviving spouse in and to any asset, benefit or like program carrying a beneficiary
designation which belongs to the other party under the terms of this Agreement, including, but
not limited to, pensions and retirement plans of any sort or nature, deferred compensation plans,
life insurance policies, annuities, stock accounts, bank accounts, final pay checks or any other
post-death distribution scheme, and each party expressly states that it is his and her intention to
revoke by the terms of this Agreement any beneficiary designations naming the other which are
in effect as of the date of execution of this Agreement. If and in the event the other party
continues to be named as beneficiary and no alternate beneficiary is otherwise designated, the
beneficiary shall be deemed to be the estate of the deceased party. Notwithstanding any
continuing marital status between the parties, each shall sign whatever documents are necessary
to enable the other to designate new beneficiaries for retirement plans, insurance policies and
similar assets in order to conform with law.
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23. RELEASE OF CLAIMS.
a, Wife and Husband acknowledge and agree that the property dispositions
provided for herein constitute an equitable distribution of their assets and
liabilities pursuant to 93502 of the Divorce Code, and Wife and Husband
hereby waive any right to division of their property except as provided for
in this Agreement. Furthermore, except as otherwise provided for in this
Agreement, each ofthe parties hereby specifically waives, releases,
renounces and forever abandons any claim, right, title or interest
whatsoever he or she may have in property transferred to the other party
pursuant to this Agreement or identified in this Agreement as belonging to
the other party, and each party agrees never to assert any claim to said
property or proceeds in the future. However, neither party is released or
discharged from any obligation under this Agreement or any instrument or
document executed pursuant to this Agreement.
b, Each party hereby absolutely and unconditionally releases and forever
discharges the other and the estate of the other for all purposes from any
and all rights and obligations which either party may have or at any time
hereafter has for past, present or future support or maintenance, alimony
pendente lite, alimony, equitable distribution, counsel fees, costs,
expenses, and any other right or obligation, economic or otherwise,
whether arising out of the marital relationship or otherwise, including all
rights and benefits under the Pennsylvania Divorce Code of 1980, its
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supplements and amendments, as well as under any other law of any other
jurisdiction, except and only except all rights and obligations arising under
this Agreement or for the breach of any of its provisions. Neither party
shall have any obligation to the other not expressly set forth herein.
c. Except as set forth in or as to any breach of this Agreement, each party
hereby absolutely and unconditionally releases and forever discharges the
other and his or her heirs, executors, administrators, assigns, property and
estate from any and all rights, claims, demands or obligations arising out
of or by virtue of the marital relationship of the parties whether now
existing or hereafter arising. The above release shall be effective
regardless of whether such claims arise out of any former or future acts,
contracts, engagements or liabilities of the other or by way of dower,
curtesy, widow's or widower's rights, family exemption or similar
allowance, or under the intestate laws or the right to take against the
spouse's will, or the right to treat a lifetime conveyance by the other as
testamentary or all other rights of a surviving spouse to participate in a
deceased spouse's estate, whether arising under the laws of Pennsylvania,
any state, commonwealth or territory of the United States, or any other
country.
d. Except for the obligations of the parties contained in this Agreement and
such rights as are expressly reserved herein, each party gives to the other
by the execution of this Agreement an absolute and unconditional release
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and discharge from all causes of action, claims, rights or demands
whatsoever in law or in equity, which either party ever had or now has
against the other.
e. Husband and Wife acknowledge that Husband has instituted a no-fault
action in divorce against Wife docketed to No. 01-2494 in the Court of
Common Pleas of Cumberland County, Pennsylvania. Husband shall,
promptly and without delay, proceed with the said divorce action, and the
parties shall execute all documents necessary to conclude the divorce
immediately upon presentation of same.
24. AGREEMENT TO BE INCORPORATED BUT NOT MERGED IN
DIVORCE DECREE
This Agreement may be incorporated into a decree of divorce for purposes of
enforcement only, but shall not be merged into said decree. The parties shall have the right to
enforce this Agreement under the Divorce Code of 1980, as amended, and in addition, shall
retain any remedies in law or in equity under this Agreement as an independent contract. Such
remedies in law or equity are specifically not waived or released.
25. MODIFICATION
No modification, rescission or amendment to this Agreement shall be effective unless in
writing and signed by each of the parties hereto.
26. WAIVER OF BREACH
The waiver by one party of any breach of this Agreement by the other party shall not be
deemed a waiver of any other breach of any provision of this Agreement.
27. APPLICABLE LAW
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All acts contemplated by this Agreement shall be construed and enforced under the
substantive laws of the Commonwealth of Pennsylvania in effect as of the date of execution of
this Agreement.
28. SEVERABILITY
If any provision of this Agreement is held by a court of competent jurisdiction to be void,
invalid or unenforceable, the remaining provisions hereof shall nevertheless survive and continue
in full force and effect without being impaired or invalidated in any way.
29. AGREEMENT BINDING ON PARTIES AND HEIRS
This Agreement shall bind the parties hereto and their respective heirs, executors,
administrators, legal representatives, assigns and successors.
30. HEADINGS NOT PART OF AGREEMENT
Any headings preceding the text of the several paragraphs and subparagraphs hereof are
inserted solely for convenience of reference and shall not constitute a part of this Agreement, nor
shall they affect its meaning, construction or effect.
31. ENTIRE AGREEMENT
Each party acknowledges that he or she has carefully read this Agreement; that he or she
has had ample opportunity to discuss its provisions with an attorney of his or her own choice,
and has executed it freely and voluntarily. The parties further acknowledge and confirm that the
execution of this Agreement is not the result of any duress, undue influence, collusion or
improper or illegal agreement or agreements; and that this instrument expresses the entire
agreement between the parties concerning the subjects it purports to cover and supersedes any
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and all prior agreements between the parties. This Agreement shall be interpreted fairly and
simply, and not strictly for or against either of the parties.
32. MUTUAL COOPERATION
Each party shall, on demand, execute and deliver to the other any deeds, bills of sale,
assignments, consents to change of beneficiary designations and other documents, and shall do
or cause to be done every other act or thing that may be necessary or desirable to effectuate the
provisions and purposes of this Agreement. If either party unreasonably fails on demand to
comply with these provisions, that party shall pay to the other party all attorney's fees, costs, and
other expenses actually incurred as a result of such failure.
33. BREACH
If either party hereto breaches any provision hereof, the other party shall have the right, at
his or her election, to sue for damages for such breach, or seek such other remedies or relief as
may be available to him or her. The non-breaching party shall be entitled to recover from the
breaching party all costs, expenses and legal fees actually incurred in the enforcement of the
rights of the non-breaching party.
34. DATE OF EXECUTION
The "date of execution" or "execution date" of this Agreement shall be defined as the date
upon which the parties signed the Agreement if they did so on the same date, or if not on the
same date, then the date on which the Agreement was signed by the last party to execute this
Agreement.
35. EFFECTIVE DATE
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This Agreement shall become effective and binding upon both parties on the execution
date.
36. EFFECT OF RECONCILIATION. COHABITATION OR
DIVORCE
This Agreement shall remain in full force and effect and shall not be abrogated even if
the parties effect a reconciliation, cohabit as husband and wife or attempt to effect a
reconciliation. This Agreement also shall continue in full force and effect in the event of the
parties' divorce. There shall be no modification or waiver of any of the terms hereof unless the
parties in writing execute a statement declaring this Agreement or any term of this Agreement to
be null and void.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and
year first above written.
WITNESS:
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney tD. No, 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No, (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYL VANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, a/k/a!
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
PRAECIPE TO TRANSMIT RECORD
TO THE PROTHONOTARY:
Transmit the record, together with the following information, to the Court for entry of a
divorce decree:
1. Grounds for divorce: Irretrievable breakdown under 9 3301(c) of the Divorce
Code.
2. Date and manner of service of the Complaint: Service was accepted by the
Defendant on the 3'd day of May, 2001, by certified mail, return receipt requested.
3. Date of execution of the Affidavit of Consent required by 9 3301(c) of the
Divorce Code: by Plaintiff, George A. Hinton, on January 16, 2006; by Defendant, Kim L.
Hinton a/k/a Kim L. Kuhn, on January 16, 2006.
4. Related claims pending: Settled by Agreement dated January 16,2006.
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5. Date Plaintiffs Waiver of Notice in S 330l(c) Divorce was filed with the
Prothonotary: January 25,2006.
Date Defendant's Waiver of Notice in S 330l(c) Divorce was filed with the
Prothonotary: January 25,2006.
MARIA P. COGNETTI & ASSOCIATES
Date: 1/3IjoC4
By:
210 Grandview Avenue, Suite 102
Camp Hill, P A 17011
Telephone No. (717) 909-4060
Attorney for Plaintiff
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MARIA P. COGNETTI, ESQUIRE
Attorney J.D. No. 27914
210 Grandview A venue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 0/- .:t49<(
Cud I~
KIM LOUISE HINTON, alk/a
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
NOTICE TO DEFEND AND CLAIM RIGHTS
You have been sued in Court. If you wish to defend against the claims set forth in the
following pages, you must take prompt action. You are warned that if you fail to do so, the case
may proceed without you and a Decree of Divorce or annulment may be entered against you by
the Court. A judgement may also be entered against you for any other claim or relief requested
in these papers by the Plaintiff. You may lose money or property or other rights important to
you.
When the ground for divorce is indignities or irretrievable breakdown of the marriage, you
may request marriage counseling. A list of marriage counselors is available in the Office of the
Prothonotary at the Cumberland County Courthouse, Cumberland, Pennsylvania;
IF YOU DO NOT FILE A CLAIM FOR ALIMONY, DIVISION OF PROPERTY,
LAWYER'S FEES OR EXPENSES BEFORE A DIVORCE OR ANNULMENT IS GRANTED,
YOU MAY LOSE THE RIGHT TO CLAIM ANY OF THEM.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
Cumberland County Bar Association
2 Liberty Avenue
Carlisle, PA 17013
(717) 249-3166
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney I.D. No. 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
v.
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: NO. Of- ~'1q'f ~ "'U--
KIM LOUISE HINTON, alk/aI
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
COMPLAINT UNDER SECTION 3301(c)
OF THE DIVORCE CODE
1. Plaintiff is George Anthony Hinton, who has resided at 16 East Locust Street,
Apartment No.1, Mechanicsburg, Cumberland County, Pennsylvania, for the last four (4)
months.
2. Defendant is Kim Louise Hinton, otherwise known as Kim Louise Kuhn, who has
resided at 7 Eastwick Court, Carlisle, Cumberland County, Pennsylvania, for approximately the
last five (5) years.
3. Plaintiff and Defendant have been bona fide residents in the Commonwealth for at
least six (6) months immediately previous to the filing of this Complaint.
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4. Plaintiff and Defendant were married on July 9, 1999 in Derry Township, Dauphin
County, Pennsylvania.
5. There have been no prior actions of divorce or for annulment between the parties.
6. Neither of the parties in this action is presently a member of the armed forces.
7. The Plaintiff and Defendant are both citizens of the United States.
8. Plaintiff has been advised of the availability of marriage counseling and that he may
have the right to request the Court to require the parties to participate in such counseling. Being
so advised, Plaintiff does not request that the Court require the parties to participate in counseling
prior to a divorce decree being handed down by the Court.
9. Plaintiff avers that no children were born unto this marriage.
COUNT I - DIVORCE
10. The Plaintiff avers that the grounds on which the action is based are as follows:
That the marriage is irretrievably broken.
COUNT II - EOUITABLE DISTRIBUTION
11. Paragraphs one (1) through ten (10) are incorporated herein by reference as
though set forth in full.
12. The parties have acquired personal property during their marriage.
13. The parties have not yet equitably divided said property.
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WHEREFORE, Plaintiff, George Anthony Hinton, requests this Honorable
Court enter a decree in divorce and equitably divide the marital property of the parties.
Respectfully Submitted:
MARIA P. COGNETTI & ASSOCIATES
Date: '-/1<), 'I ! O(
4
By:
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorney for Plaintiff
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VERIFICATION
I, GEORGE ANTHONY HINTON, hereby verify and state that the facts set forth in the
foregoing document are true and correct to the best of my information, knowledge and belief. I
understand that false statements herein are made subject to the penalties of 18 Pa. C.S.A. g4904
relating to unsworn verification to authorities.
DATE:~ J5, ';001
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney LD, No, 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No, (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, a/kJa
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
AFFIDAVIT OF SERVICE
I, MARIA P. COGNETTI, ESQUIRE, do hereby certify that a true and correct copy of the
Divorce Complaint was served upon the Defendant by certified mail, return receipt requested, on
the 3'd day of May, 2001. The original signed return receipt, number P 902 067200, is attached
hereto and made a part hereof.
MARIA P. COGNETTI & ASSOCIATES
Date: February 1, 2006
By:
MARIA P. COGNET
Attorney LD. No. 2791
210 Grandview Avenue, Suite 102
Camp Hill, P A 17011
Telephone No. (717) 909-4060
Attorney for Plaintiff
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney I.D. No. 27914
210 Grandview A venue, Suite 102
CampHiI1,PA 17011
Telephone No, (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
PENNSYLVANIA
v.
KIM LOUISE HINTON, a!k/a
KIM LOUISE KUHN,
Defendant
i "nder:
4 RE: HINTON VJIINTON
! MARIA P. COGl)'---n, ESQUIRE
MARIA P. COGl',._. n & ASSOCIATES
210 GRANDVIEW AVENUE, STE 102
CAMPHILL,PA 17011
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IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY,
NO. 01-2494 CIVIL TERM
: CIVIL ACTION - LAW
; IN DIVORCE
7,
4a. Article NUl;
Service Type
CERTIFIED
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P 902 067 200
8. Addressee's Address (If dJfIerentfrom edcfrass usad by send8r.) 3. Article Addressed to;
MS. KIM L. HINTON
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CARISLE PA 17013
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DOMESTIC RrrURN RECEIPT
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney LD. No. 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE IllNTON, a/k/a
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
AFFIDAVIT OF CONSENT
1. A Complaint in Divorce under Section 3301(c) ofthe Divorce Code was filed on
April 27, 2001.
2. The marriage of Plaintiff and Defendant is irretrievably broken, and ninety (90)
days have elapsed from the date of the filing and service of the Complaint.
3. I consent to the entry of a final decree of divorce after service of notice of
intention to request entry of the decree.
4. I understand that I may lose rights concerning alimony, division of property,
lawyer's fees or expenses if! do not claim them before the divorce is granted.
I verify that the statements made in this affidavit are true and correct. I understand that
false statements herein are made subject to the penalties of 18 Pa.C.S. 94904 relating to unsworn
falsification to authorities.
Date: /t~pfJ6)b
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MARIA P. COGNETTI, ESQUIRE
Attorney LD. No, 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, alk!a
KIM LOUISE KUHN,
Defendant
CIVIL ACTION - LAW
IN DIVORCE
WAIVER OF NOTICE OF INTENTION TO REOUEST ENTRY
OF DIVORCE DECREE UNDER
~ 3301(c) OF THE DIVORCE CODE
I. I consent to the entry of a final Decree of Divorce without notice.
2. I understand that I may lose rights concerning alimony, division of property,
lawyer's fees or expenses if I do not claim them before a divorce is granted.
3. I understand that I will not be divorced until a Divorce Decree is entered by
the Court and that a copy of the Decree will be sent to me immediately after it is filed with
the Prothonotary.
I verify that the statements made in this affidavit 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.
Date: 0~t98"
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GEORGE ANTHONY HINTON,
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: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, a/k/a
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
AFFIDAVIT OF CONSENT
1. A Complaint in Divorce under Section 3301(c) of the Divorce Code was filed on
April 27, 2001.
2. The marriage of Plaintiff and Defendant is irretrievably broken, and ninety (90)
days have elapsed from the date of the filing and service of the Complaint.
3. I consent to the entry of a final decree of divorce after service of notice of
intention to request entry of the decree.
4. I understand that I may lose rights concerning alimony, division of property,
lawyer's fees or expenses if! do not claim them before the divorce is granted.
I verifY that the statements made in this affidavit are true and correct. I understand that
false statements herein are made subject to the penalties of 18 Pa.C.S. g4904 relating to unsworn
falsification to authorities.
Date: \ ~ I G~D{p
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-2494 CIV~ TERM
KIM LOUISE HINTON, a/kIa
KIM LOUISE KUHN,
Defendant
CIV~ ACTION - LAW
IN DIVORCE
WAIVER OF NOTICE OF INTENTION TO REOUEST ENTRY
OF DIVORCE DECREE UNDER
& 330Hc) OF THE DIVORCE CODE
I. I consent to the entry of a final Decree of Divorce without notice.
2. I understand that I may lose rights concerning alimony, division of property,
lawyer's fees or expenses if! do not claim them before a divorce is granted.
3. I understand that I will not be divorced until a Divorce Decree is entered by the
Court and that a copy of the Decree will be sent to me immediately after it is filed with the
Prothonotary.
I verify that the statements made in this affidavit 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.
Date: 1-[&-0&
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VS.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
J.lJq If
NO. 01 - .~ CIVIL
GEORGE ANTHONY HINTON,
Plaintiff
KIM LOUISE HINTON/KUHN,
Defendant
IN DIVORCE
ORDER OF COURT
AND NOW, this
""':Z-'1
day of
Jawr-'
2006, the economic claims raised in the proceedings having been
resolved in accordance with a marriage settlement agreement
dated January 16, 2006, the appointment of the Master is
vacated and counsel can file a praecipe transmitting the record
to the Court requesting a final decree in divorce.
BY THE COUR ,
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cc:
~a P. Cognetti
Attorney for Plaintiff
~ J. Esposito
Attorney for Defendant
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MARRlAit~ AGREEMENT
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TIDS AGREEMENT, made this 1& day of , 'av<.~ ,2006,
by and between KIM L. KUHN, (hereinafter referred to as "Wife") and GEORGE A.
HINTON, (hereinafter referred to as "Husband").
WITNESSETH:
WHEREAS, the parties hereto are Husband and Wife, having been married on July 9,
1999, in Dauphin County, Pennsylvania; and
WHEREAS, the parties were separated on or about November 12, 2000; and
WHEREAS, no children have been born to the marriage; and
WHEREAS, certain differences, disputes and difficulties have arisen between the parties
as a result of which they intend to live separate and apart for the rest of their natural lives, and
are desirous of settling fully and finally their respective fmancial and property rights and
obligations as between each other, including, without limitation by specification, the settling of
all claims between them relating to the ownership and equitable distribution of their real and
personal property; the settling of all matters between them relating to the past, present and future
support, alimony, alimony pendente lite and/or maintenance of Wife by Husband or of Husband
by Wife; and, in general, the settling of any and all claims and possible claims by one against the
other or against their respective estate.
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NOW, THEREFORE, in consideration of the mutual promises, covenants and
undertakings hereinafter set forth, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the parties hereto, Husband and Wife,
each intending to be legally bound and to legally bind their heirs, successors and assigns hereby
covenant, promise and agree as follows:
1. SEPARATION
Husband and Wife shall at all times have the right to live separate and apart from each
other and to reside from time to time at such place or places as they shall respectively deem fit,
free from any control, restraint or interference whatsoever by the other, subject to the further
provisions of this Agreement.
2. HUSBAND'S DEBTS
Husband represents and warrants to Wife that he has not and, in the future, will not
contract or incur any debt or liability for which Wife or her estate might be responsible and shall
indemnify and save Wife harmless from any and all claims or demands made against her by
reason of debts or obligations incurred by him.
3. WIFE'S DEBTS
Wife represents and warrants to Husband that she has not and, in the future, will not
contract or incur any debt or liability for which Husband or his estate might be responsible and
shall indemnify and save Husband harmless from any and all claims or demands made against
him by reason of debts or obligations incurred by her.
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4. OUTSTANDING JOINT DEBTS
Husband and Wife acknowledge and agree that they have no outstanding debts and
obligations which were jointly incurred by them during their marriage with the exception of
those which are set forth elsewhere in this Agreement.
5. LIABILITY NOT LISTED
Each party represents and warrants to the other that he or she has not incurred any debt,
obligation or other liability, other than those described in this Agreement, for which the other
pmty is or may be liable. A liability not disclosed in this Agreement will be the sole
responsibility of the party who has incurred, or may hereinafter incur it, and such party agrees to
pay it as the same shall become due, and to indemnify and hold the other party and his or her
property harmless from any and all such debts, obligations and liabilities.
6. DISPOSITION OF REAL PROPERTY
The parties acknowledge that neither party acquired any real estate during their marriage.
They further acknowledge that each of them acquired, individually, an interest in real estate prior
to their marriage, and consequently consider their respective real property to be their separate
property. More specifically, Husband shall continue to be the sole and exclusive owner of the
property situate at 16 East Locust Street, Mechanicsburg, Cumberland County, Pennsylvania and
Wife shall continue to be the sole and exclusive owner of the property situate at 7 Eastwick
Court, Carlisle, Cumberland County, Pennsylvania. Each party hereby waives and relinquishes
to the other, any right, title or interest in and to the real estate of the other.
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7. DMSION OF PERSONAL PROPERTY
The parties agree that they have divided their separate and marital personal property to
their mutual satisfaction. As of the execution date of this Agreement, any and all property not
specifically addressed herein shall be owned by the party to whom the property is titled, and if
untitled, the party in possession. This Agreement shall constitute a sufficient bill of sale to
evidence the transfer of any and all rights in such property from each to the other.
8. AFTER-ACQUIRED PROPERTY
The parties shall hereafter own and enjoy, independently of any claim or right of the
other, all items of property, real, personal or mixed, tangible or intangible, which are or were
acquired by him or her after the parties' date of separation, with full power in him or her to
dispose of the same as fully and effectively, in all respects and for all purposes, as though he or
she were unmarried.
9. MOTOR VEIDCLES
The parties acknowledge that the 2001 Audi A4 is owned by Hinton & Associates, Inc.,
and the 1992 GMC Sonoma truck is owned by Husband. The parties hereby agree that the Audi
shall remain the property of Hinton & Associates, Inc., and the Sonoma truck shall remain the
property of Husband. Husband shall be entitled to exclusive possession of both vehicles.
The parties further acknowledge that the 1999 Kawasaki Drifter motorcycle has been
sold. Wife shall make no claim regarding the motorcycle.
The 2001 Audi TT which had been leased by Hinton & Associates, Inc., and driven by
Wife was turned into Victory Auto for lease end processing on October 29, 2005. No claims
shall be made by Hinton & Associates, Inc., or Husband regarding said vehicle.
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10. FINANCIAL AND INVESTMENT ACCOUNTS
The parties hereby agree that Husband shall retain as his sole and separate property, free
of any and all right, title, claim or interest of Wife, the financial and investment accounts which
appear below:
a. Members First Federal Credit Union checking account #183469;
b. Legg Mason Value Trust account #294-1560526111;
c. Legg Mason Opportunity Trust account #1189-1560526111;
d. Munder Net Net A account #0002851418;
e. Internet Fund account #067-067-6700206403;
f. Fidelity Roth IRA.
The parties further agree that Wife shall retain as her sole and separate property, free of
any and all right, title, claim or interest of Husband, the fmancial and investment accounts which
appear below:
a. Members First Federal Credit Union savings and checking accounts; and
b. Comerica 401(k) account #272625.
11. CASH PAYMENT
In consideration of and for Wife's waiver and relinquishment of all rights arising from
their marital relationship, including but not limited to the conveyance to Husband of her interest
in the business known as Hinton & Associates, Inc., the marital investment funds,and as
otherwise set forth in this Agreement, Husband shall pay to Wife the sum of$80,000.00 in full
immediately upon execution of this Agreement and after all company-owned documents and
equipment, so defined in this Agreement, have been transferred by Wife to Husband.
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For the purposes of this Agreement, company-owned documents and equipment
shall be defined as:
a. 2003 Accounts Payable, Accounts Receivables and Service Files;
b. 2004 Accounts Payable, Accounts Receivables and Service Files;
c. 2005 Accounts Payable, Accounts Receivables (Husband
already has the 2005 Service files);
d. UPS Scale;
e. Easy Pass;
f. P.O. Box key;
g. Checks;
h. Check card;
i. Vendor Certification binders;
j. Bank Stamp;
k. Return address stamp;
1. Kelly's personal computer;
m. Tax: files and bank statements for 2003, 2004, and 2005;
n. Any other customer files, documentation and the like in Wife's
possession;
o. Company letterhead and envelopes in Wife's possession.
12. HINTON & ASSOCIATES. INC.
Subject to the further provisions of this Agreement, Wife hereby relinquishes any and all
right, title, claim or interest that she may have in the business known as Hinton & Associates,
Inc. Wife shall sign any and all documents necessary to effectuate the relinquishment of any
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legal or other interest she may have in and to the aforementioned business. Husband shall retain
all right, title and interest in and to Hinton & Associates, Inc., as his sole and exclusive property.
Husband shall be solely responsible for all of the debts, obligations and financial
commitments of Hinton & Associates, Inc., including but not limited to the M&T Bank loan and
home equity line of credit. Further, Husband agrees to hold Wife harmless from any such
obligations and shall indemnify her from any and all expenses individually incurred by him
arising out of the business obligations. Husband shall take all steps necessary to have Wife
removed from the M&T Bank loan and any other obligations of the business on which her name
appears immediately upon the execution of this Agreement. Husband shall immediately take all
steps necessary to have Wife's name removed as a responsible party from all credit line
accounts, vendor/manufacturer accounts and any similar accounts, including, but not limited to,
M&T Bank, Ingram Micro, Hewlett-Packard, IBM and Cisco. Husband shall provide Wife with
verified documentation of the completion of this process within thirty (30) days from the date of
execution of this Agreement.
Wife shall provide Hinton & Associates, Inc. with documentation that the company
Capitol One credit card has been transferred into Wife's name, and Wife will be the sole
individual responsible for any current or future balances due.
Husband has neither contacted nor has been in contact with a prospective purchaser of
Hinton & Associates, Inc.
The parties acknowledge that contemporaneously with the execution of this Agreement,
they have executed a Stock Purchase Agreement in furtherance of the applicable provisions of
this Agreement.
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The Company shall retain the following telephone numbers; 717-258-1573, 717-241-
9371, and 1-866-446-8667. Wife shall retain her personal telephone number (717-241-0700) and
long distance NTE, both of which shall be immediately transferred into her name. Wife shall
also retain her DSL line with P A.net and Sprint at 7 Eastwick Court, which shall not be cancelled
lllld shall be immediately transferred into her name. No other location of Hinton & Associates,
Inc., serviced by DSL will be transferred into Wife's name for payment reasons. Wife shall
retain all DSL equipment at 7 Eastwick Court. Wife shall be responsible for the costs associated
with the transfer of the DSL Internet connection into her name alone. The Company shall
remain responsible for costs lllld expenses of the following through and including the date of
execution of this Agreement: cn (DSL), Cingular (cell phone), Sprint (4 telephone lines), and
NTE (long distance service) The charges associated with Wife's cell phone shall be transferred
into Wife's name effective the day following the date of execution of this Agreement.
Immediately upon execution of this Agreement, Husband shall provide Wife with
activation keys to ensure that all application software described herein and currently installed on
Wife's personal computer will be legally licensed: Norton Internet Services, Norton Antivirus,
lllld Microsoft Office Professional. Husband shall purchase a new CD burner for Wife for her
personal computer to replace the CD burner he removed from Wife's personal computer.
Hinton & Associates shall continue to provide medical insurance coverage for Wife as
presently provided under the group policy with Health Assurance and Guardillll for a period of
one (1) month after the parties' execution of this Agreement lllld the Stock Agreement.
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Husband shall not submit a forwarding request of mail from Wife's home address, 7
Eastwick Court, Carlisle, P A 17013. Any mail addressed to the company received by Wife at
her home address shall be promptly delivered to the Configuration Center.
13. PENDING LITIGATION
The parties acknowledge that they have been involved in certain legal disputes involving
Hinton & Associates, Inc., and Hornesale Realty Services Group, Inc., Homesale Real Estate
Services, Inc., Homesale Settlement Services, Inc. and Shannon Terry. The parties further
acknowledge that said legal disputes have been fully and finally resolved pursuant to the
execution of Mutual Release by Husband and Wife and all of the parties referred to in this
paragraph. Wife hereby waives and relinquishes any right, title, claim or interest she might
otherWise have in and to any settlements or awards Hinton & Associates, Inc. or Husband have
received as a result of the aforementioned or any other legal actions regarding the business.
14. APPLICABILITY OF TAX LAW TO PROPERTY TRANSFERS
The parties hereby agree and express their intent that any transfer of property pursuant to
this Agreement shall be within the scope and applicability of the Deficit Reduction Act of 1984
(hereinafter the "Act"), specifically, the provisions of said Act pertaining to the transfers of
property between spouses and former spouses. The parties agree to sign and cause to be tiled
any elections or other docwnents required by the Internal Revenue Service to render the Act
applicable to the transfers set forth in this Agreement without recognition of gain on such
transfers and subject to the carry-over basis provisions of the said Act.
15. BANKRUPTCY
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It is hereby understood and agreed by and between the parties that their obligations
pursuant to this Agreement shall not be affected by any bankruptcy proceeding involving the
parties individually or Hinton & Associates, and shall not be deemed to constitute or be a
dischargeable debt in any bankruptcy proceeding. Both parties warrant that he/she has not
heretofore instituted any proceedings pursuant to the Bankruptcy laws nor are there any such
proceedings pending with respect to himlher or Hinton & Associates that have been initiated by
others.
16. TAX RETURNS
The parties acknowledge that they have heretofore filed certain joint income tax returns.
The parties hereby agree that in the future, if any penalties or interest or any liability for failure
to declare income or as a result of disallowance of a claimed deduction shall be assessed by the
United States Internal Revenue Service, Commonwealth of Pennsylvania or other taxing
authority, said penalties or interest shall be paid by and solely attributable to and be the
responsibility of the party failing to declare said income or claiming the deduction. In addition,
the responsible party shall indemnify, defend and hold the other party harmless against all tax,
penalty and interest payments, as well as attorney and accounting fees incurred arising from the
failure to declare income or disallowance of the claimed deduction. The parties further agree
that each will immediately forward to the other a copy of any deficiency notice or other
correspondence received by either of them from the Internal Revenue Service, Commonwealth
of Pennsylvania or other taxing authority, concerning tax years for which a joint return has been
filed. The responsible party shall have ten (10) days after receipt of notice to either pay the
taxing authority or defend the innocent party against the taxing authority. Thereafter, the
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innocent party shall have the right to secure his/her own counsel and the responsible party shall
pay the reasonable and necessary fees thereof.
17. DISCLOSURE OF ASSETS AND WAIVER OF PROCEDURAL
RIGHTS
Each of the parties hereto acknowledges that he or she is aware of his or her right to seek
discovery, including, but not limited to, written interrogatories, motions for production of
documents, the taking of oral depositions, the filing of inventories and all other means of
discovery permitted under the Peunsylvania Divorce Code, as amended, or the Peunsylvania
Rules of Civil Procedure. Each of the parties further acknowledges that he or she has had the
opportunity to discuss with counsel the concept of marital property under Peunsylvania law, and
each is aware of his or her right to have the real and/or personal property, estate and assets,
earnings and income of the other assessed or evaluated by the Courts of this Commonwealth.
The parties do hereby acknowledge that there has been full and fair disclosure to the other of his
or her respective income, assets and liabilities, whether such are held jointly or in the name of
one party alone. Each party agrees that any right to further disclosure, valuation, enumeration or
statement thereof in this Agreement is hereby specifically waived. Each party warrants that he or
she is not aware of any marital asset which is not identified in this Agreement. The parties
hereby acknowledge and agree that the division of assets as set forth in this Agreement is fair,
reasonable and equitable, and is satisfactory to them. Each of the parties hereto further
covenants and agrees for himself and herself and his or her heirs, executors, administrators or
assigns, that he or she will never at any time hereafter sue the other party or his or her heirs,
executors, administrators or assigns with respect to this divorce, alleging that there was a denial
of any rights to full disclosure, or that there was any duress, undue influence or that there was a
11
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failure to have available full, proper and independent representation by legal counsel. The
parties acknowledge that a breach of this Agreement does, however, remain actionable.
18. ADVICE OF COUNSEL
The provisions of this Agreement and their legal effect have been fully explained to Wife
by her counsel, Paul J. Esposito, Esquire; and to Husband by his counsel, Maria P. Cognetti,
Esquire. Each party confirms that he or she fully understands the terms, conditions and
provisions of this Agreement and believes them to be fair, just, adequate and reasonable under
the existing circumstances.
19. WAIVER OF ALIMONY. ALIMONY PENDENTE LITE. AND
SPOUSAL SUPPORT
Husband and Wife hereby expressly waive, discharge and release any and all rights and
claims which he or she may have now or hereafter by reason of the parties' marriage to alimony,
alimony pendente lite, spousal support and/or maintenance or other like benefits resulting from
the parties' status as Husband and Wife. The parties further release and waive any rights they
may have to seek modification of the terms of this Paragraph in a court oflaw or equity, it being
understood that the foregoing constitutes a final determination for all time of either parties'
obligation to contribute to the support and maintenance of the other.
20. COUNSEL FEES. COSTS AND EXPENSES
Each party shall be solely responsible for his or her own legal fees, costs and expenses
incurred in counection with their separation and/or the dissolution of the marriage and the
preparation and execution of this Agreement.
21. WAIVER OF INHERITANCE RIGHTS
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Unless otherwise specifically provided in this Agreement, as of the date of execution of
this Agreement, Husband and Wife each waives all rights of inheritance in the estate of the other,
any right to elect to take against the Will or any Trust of the other or in which the other has an
interest and each of the parties hereby waives any additional rights which said party has or may
have by reason of their marriage, except the rights saved or created by the terms of this
Agreement. This waiver shall be construed generally and shall include, but not be limited to, a
waiver of all rights provided under the laws of Pennsylvania or any other jurisdiction.
22. WAIVER OF BENEFICIARY DESIGNATION
As of the date of execution of this Agreement, unless otherwise specifically set forth
herein, each party hereto specifically waives any and all beneficiary rights and any and all rights
as a surviving spouse in and to any asset, benefit or like program carrying a beneficiary
designation which belongs to the other party under the terms of this Agreement, including, but
not limited to, pensions and retirement plans of any sort or nature, deferred compensation plans,
life insurance policies, annuities, stock accounts, bank accounts, final pay checks or any other
post-death distribution scheme, and each party expressly states that it is his and her intention to
revoke by the terms of this Agreement any beneficiary designations naming the other which are
in effect as of the date of execution of this Agreement. If and in the event the other party
continues to be named as beneficiary and no alternate beneficiary is otherwise designated, the
beneficiary shall be deemed to be the estate of the deceased party. Notwithstanding any
continuing marital status between the parties, each shall sign whatever documents are necessary
to enable the other to designate new beneficiaries for retirement plans, insurance policies and
similar assets in order to conform with law.
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23. RELEASE OF CLAIMS.
a. Wife and Husband acknowledge and agree that the property dispositions
provided for herein constitute an equitable distribution of their assets and
liabilities pursuant to 93502 of the Divorce Code, and Wife and Husband
hereby waive any right to division of their property except as provided for
in this Agreement. Furthermore, except as otherwise provided for in this
Agreement, each of the parties hereby specifically waives, releases,
renounces and forever abandons any claim, right, title or interest
whatsoever he or she may have in property transferred to the other party
pursuant to this Agreement or identified in this Agreement as belonging to
the other party, and each party agrees never to assert any claim to said
property or proceeds in the future. However, neither party is released or
discharged from any obligation under this Agreement or any instrument or
document executed pursuant to this Agreement.
b. Each party hereby absolutely and unconditionally releases and forever
discharges the other and the estate of the other for all purposes from any
and all rights and obligations which either party may have or at any time
hereafter has for past, present or future support or maintenance, alimony
pendente lite, alimony, equitable distribution, counsel fees, costs,
expenses, and any other right or obligation, economic or otherwise,
whether arising out of the marital relationship or otherwise, including all
rights and benefits under the Pennsylvania Divorce Code of 1980, its
14
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supplements and amendments, as well as under any other law of any other
jurisdiction, except and only except all rights and obligations arising under
this Agreement or for the breach of any of its provisions. Neither party
shall have any obligation to the other not expressly set forth herein.
c. Except as set forth in or as to any breach of this Agreement, each party
hereby absolutely and unconditionally releases and forever discharges the
other and his or her heirs, executors, administrators, assigns, property and
estate from any and all rights, claims, demands or obligations arising out
of or by virtue of the marital relationship of the parties whether now
existing or hereafter arising. The above release shall be effective
regardless of whether such claims arise out of any former or future acts,
contracts, engagements or liabilities of the other or by way of dower,
curtesy, widow's or widower's rights, family exemption or similar
allowance, or under the intestate laws or the right to take against the
spouse's will, or the right to treat a lifetime conveyance by the other as
testamentary or all other rights of a surviving spouse to participate in a
deceased spouse's estate, whether arising under the laws ofl'ennsylvania,
any state, commonwealth or territory of the United States, or any other
country.
d. Except for the obligations of the parties contained in this Agreement and
such rights as are expressly reserved herein, each party gives to the other
by the execution of this Agreement an absolute and unconditional release
15
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and discharge from all causes of action, claims, rights or demands
whatsoever in law or in equity, which either party ever had or now has
against the other.
e. Husband and Wife acknowledge that Husband has instituted a no-fault
action in divorce against Wife docketed to No. 01-2494 in the Court of
Common Pleas of Cumberland County, Pennsylvania. Husband shall,
promptly and without delay, proceed with the said divorce action, and the
parties shall execute all documents necessary to conclude the divorce
immediately upon presentation of same.
24. AGREEMENT TO BE INCORPORATED BUT NOT MERGED IN
DIVORCE 'DECREE
This Agreement may be incorporated into a decree of divorce for purposes of
enforcement only, but shall not be merged into said decree. The parties shall have the right to
enforce this Agreement under the Divorce Code of 1980, as amended, and in addition, shall
retain any remedies in law or in equity under this Agreement as an independent contract. Such
remedies in law or equity are specifically not waived or released.
25. MODIFICATION
No modification, rescission or amendment to this Agreement shall be effective unless in
writing and signed by each of the parties hereto.
26. WAIVEROFBREACH
The waiver by one party of any breach of this Agreement by the other party shall not be
deemed a waiver of any other breach of any provision of this Agreement.
27. APPLICABLE LAW
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All acts contemplated by this Agreement shall be construed and enforced under the
substantive laws of the Commonwealth of Pennsylvania in effect as of the date of execution of
this Agreement.
28. SEVERABILITY
If any provision of this Agreement is held by a court of competent jurisdiction to be void,
invalid or unenforceable, the remaining provisions hereof shall nevertheless survive and continue
in full force and effect without being impaired or invalidated in any way.
29. AGREEMENT BINDING ON PARTIES AND HEIRS
This Agreement shall bind the parties hereto and their respective heirs, executors,
administrators, legal representatives, assigns and successors.
30. HEADINGS NOT PART OF AGREEMENT
Any headings preceding the text of the several paragraphs and subparagraphs hereof are
inserted solely for convenience of reference and shall not constitute a part of this Agreement, nor
shall they affect its meaning, construction or effect.
31. ENTIRE AGREEMENT
Each party acknowledges that he or she has carefully read this Agreement; that he or she
has had ample opportunity to discuss its provisions with an attorney of his or her own choice,
and has executed it freely and voluntarily. The parties further acknowledge and confirm that the
execution of this Agreement is not the result of any duress, undue influence, collusion or
improper or illegal agreement or agreements; and that this instrument expresses the entire
agreement between the parties concerning the subjects it purports to cover and supersedes any
17
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and all prior agreements between the parties. This Agreement shall be interpreted fairly and
simply, and not strictly for or against either of the parties.
32. MUTUAL COOPERATION
Each party shall, on demand, execute and deliver to the other any deeds, bills of sale,
assignments, consents to change of beneficiary designations and other documents, and shall do
or cause to be done every other act or thing that may be necessary or desirable to effectuate the
provisions and purposes of this Agreement. If either party unreasonably fails on demand to
comply with these provisions, that party shall pay to the other party all attorney's fees, costs, and
other expenses actually incurred as a result of such failure.
33. BREACH
If either party hereto breaches any provision hereof, the other party shall have the right, at
his or her election, to sue for damages for such breach, or seek such other remedies or relief as
may be available to him or her. The non-breaching party shall be entitled to recover from the
breaching party all costs, expenses and legal fees actually incurred in the enforcement of the
rights of the non-breaching party.
34. DATE OF EXECUTION
The "date of execution" or "execution date" of this Agreement shall be defined as the date
upon which the parties signed the Agreement if they did so on the same date, or if not on the
same date, then the date on which the Agreement was signed by the last party to execute this
Agreement.
35. EFFECTIVE DATE
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This Agreement shall become effective and binding upon both parties on the execution
date.
36. EFFECT OF RECONCILIATION. COHABITATION OR
DIVORCE
This Agreement shall remain in full force and effect and shall not be abrogated even if
the parties effect a reconciliation, cohabit as husband and wife or attempt to effect a
reconciliation. This Agreement also shall continue in full force and effect in the event of the
parties' divorce. There shall be no modification or waiver of any of the terms hereof unless the
parties in writing execute a statement declaring this Agreement or any term of this Agreement to
be null and void.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and
year first above written.
WITNESS:
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GEORGE ANTHONY lllNTON
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
:
CIVIL ACTION - LAW
VS.
NO. 01 - 2494
IN DIVORCE
CIVIL
19
KIM LOUISE lllNTONIKUHN
Defendant
STATUS SHEET
DATE:
ACTIVITIES: L '
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MARJ[A P. COGNETTJI & ASSOCJIA TES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102. Camp Hill, PA 17011
Telephone (717) 909-4060 . Fax (717) 909.4068
Email CognettiLaw@aol.com
Maria p, Cognetti *
Attorney at Law
Practice Limited to Matrimonial Law
Kristopher T, Smull
Attorney at Law
*Fellow, Anlerican Academy of
Matrimonial Lawyers
Fellow, International Academy of
Matrimonial Lawyers
Jennifer L LaBelle
Attorney at Law
September 16, 2005
E. Robert Elicker, 11, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, PA 17013
RE: KUHN V. HINTON
No. 01-2494
Our File No. 232
Dear Master Elicker:
As you may recall, sometime ago Attorney Esposito and I had informed you that we had
settled the above-referenced matter. Unfortunately, at this point in time, we are not able to bring
this matter to a close and therefore will require that the Master's Hearing be rescheduled. Please
let me know what role you want counsel to take in the rescheduling of that hearing or whether you
will simply have Tracy contact the attorneys. We look forward to hearing from you in this regard.
~ truly YO" ,
MPC/jg
cc: Paul J. Esposito, Esquire
Mr. George Hinton
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GEORGE ANTHONY HINTON
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION - LAW
v.
KIM LOUISE HINTON/KUHN
: NO.
01 - 2994
: IN DIVORCE
ORDER AND NOTICE SETTING HEARING
TO: George Anthony Hinton
Maria P. Cognetti
, Plaintiff
, Counsel for Plaintiff
Kim Louise Hinton/Kuhn
Paul J. Esposito
, Defendant
, Counsel for Defendant
*
You are directed to appear for a hearing to take testimony on the outstanding
issues in the above captioned divorce proceedings at the Office ofthe Divorce Master, 9
North Hanover Street, Carlisle, Pennsylvania, on the 21 st
day of
a.m., at which place
July
2005 at
9:00
and time you will be given the opportunity to present witnesses and exhibits in support
of your case.
By the Court,
George E. Hoffer, President Judge
Date of Order and
Notice: 5/12/05
By:
Divorce Master
IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET, CARLISLE, PA 17013
TELEPHONE (717) 249-3166
* TESTIMONY WILL BE LIMITED TO EXPERT WITNESSES.
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GEORGE ANTHONY HINTON
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION - LAW
v.
KIM LOUISE HINTON/KUHN
: NO.
01 - 2994
: IN DIVORCE
RESCHEDULED HEARING
ORDER AND NOTICE SETTING HEARING
TO: George Anthony Hinton
Maria P. Cognetti
, Plaintiff
, Counsel for Plaintiff
Kim Louise HintonIKuhn
Paul J. Esposito
, Defendant
, Counsel for Defendant
*
You are directed to appear for a hearing to take testimony on the outstanding
issues in the above captioned divorce proceedings at the Office of the Divorce Master, 9
26th
North Hanover Street, Carlisle, Pennsylvania, on the day of
January 2006 at 9:00 a.m., at which place
and time you will be given the opportunity to present witnesses and exhibits in support
of your case.
By the Court,
Dat~ of Order anfu/3/05
NotIce:
By:
Divorce Master
IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE ,SET FORTH BELOW TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET, CARLISLE, PA 17013
TELEPHONE (717) 249-3166
* TESTIMONY WILL BE LIMITED TO EXPERT WITNESSES.
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.. GEORGE ANTHONY HINTON
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
:
CIVIL ACTION - LAW
01 - 2494
NO. CIVIL
19
VS.
KIM LOU1:nmrrONlKUHN
IN DIVORCE
Defendant
STATUS SHEET
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DATE:
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GEORGE ANTHONY HINTON,
Plaintiff
THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON, a/k/a,:
KIM LOUIS KUHN,
Defendant IN DIVORCE
TO:
Maria P. Cognetti
, Attorney for Plaintiff
Kim Louis Hinton/Kuhn
Defendant
DATE: Monday, December 8, 2003
CERTIFICATION
I certify that discovery is complete as to the claims
for which the Master has been appointed.
OR IF DISCOVERY IS NOT COMPLETE:
(a) Outline what information is required that is not
complete in order to prepare the case for trial
and indicate whether there are any outstanding
interrogatories or discovery motions.
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(b) Provide approximate date when discovery will be
complete and indicate what action is being taken
to complete discovery.
DATE
COUNSEL FOR PLAINTIFF
COUNSEL FOR DEFENDANT
NOTE:
PRETRIAL DIRECTIVES WILL NOT BE ISSUED FOR THE
FILING OF PRETRIAL STATEMENTS UNTIL ~OUNSEL HAVE
CERTIFIED THAT DISCOVERY IS COMPLETE, OR OTHERWISE
AT THE MASTER'S DISCRETION.
AFTER RECEIVING THIS DOCUMENT FROM BOTH COUNSEL
OR A PARTY TO THE ACTION, IF NOT REPRESENTED BY
COUNSEL, INDICATING THAT DISCOVERY IS NOT
COMPLETE, THE DIRECTIVE FOR FILING OF PRETRIAL
STATEMENTS WILL BE ISSUED AT THE MASTER'S
DISCRETION. HOWEVER, IF BOTH COUNSEL, OR A
PARTY NOT REPRESENTED, CERTIFY THAT DISCOVERY
IS COMPLETE, A DIRECTIVE TO FILE PRETRIAL
STATEMENTS WILL BE ISSUED IMMEDIATELY.
THE CERTIFICATION DOCUMENT SHOULD BE RETURNED
TO THE MASTER'S OFFICE WITHIN TWO (2) WEEKS OF
THE DATE SHOWN ON THE DOCUMENT.
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GEORGE ANTHONY HINTON
: IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION - LAW
v.
KIM LOUISE HINTON/KUHN
: NO.
01 - 2994
: IN DIVORCE
ORDER AND NOTICE SETTING HEARING
TO: George Anthony Hinton
Maria P. Cognetti
, Plaintiff
, Counsel for Plaintiff
Kim Louise Hinton/kuhn
Paul J. Esposito
, Defendant
, Counsel for Defendant
You are directed to appear for a hearing to take testimony on the outstanding
issues in the above captioned divorce proceedings at the Office of the Divorce Master, 9
North Hanover Street, Carlisle, Pennsylvania, on the 12th
day of
May 2005 at 9'00 a.m., at which place
and time you will be given the opportunity to present witnesses and exhibits in support
of your case.
By the Court,
Date of Order and
Notice: 3/8/05
By:
Divorce Master
IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU
CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
32 SOUTH BEDFORD STREET, CARLISLE, P A 17013
TELEPHONE (717) 249-3166
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
VS.
CIVIL ACTION - LAW
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON, a/kia,
KIM LOUISE KUHN,
Defendant
IN DIVORCE
RESCHEDULED PRE-HEARING CONFERENCE
TO: Maria P. Cognetti
, Attorney for Plaintiff
Paul J. Esposito
, Attorney for Defendant
A pre-hearing conference has been scheduled at the
Office of the Divorce Master, 9 North Hanover Street, Carlisle,
Pennsylvania, on the 7th day of March 2005, at 9:30 a.m.,
at which time we will review the pre-trial statements
previously filed by counsel, define issues, identify witnesses,
explore the possibility of settlement and, if necessary,
schedule a hearing.
Very truly yours,
Date of Notice: 12/15/04
E. Robert Elicker, II
Divorce Master
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Arthur L Goldberg
(J'151-200U)
Harry R Goldberg
( 1961-1998)
Ronald LvI. Katzman
Paul J. Esposito
\feil E. Hendershot
I, Jay Cooper
IhoJ)1(\s E. Brenner
/\priJ L. Strang-Kutay
(~uy H. Brooks
Jerry j, Russo
Michael J. Crocenzi
Thomas I, Weber
Steven E. Grubb
John DeLorenzo
Royce L. rl/lorris
David IvL Steckel
Joseph M. Semhrot
Heather L Paterno
Carly j, Wismer
Ivlic:hael F, Socha
CC)UNSEl
J ash lIJ D. Lock
Arnold D. Kogan
n
Goldberg
Katzman
A full-service law firm.
January 20, 2006
E. Robert Elicker, II, Esquire
Divorce Master
9 North Hanover Street
Carlisle, PA 17011
Re:
KuhnlHinton
Docket No. 01-2494
Dear Mr. Elicker:
In accordance with the directive from your office, I enclose two (2) fully
executed and dated copies of the Marriage Settlement Agreement in the above-
referenced case.
Thank you for your consideration in this matter.
Yours very truly,
~
PJE/sam
Enclosures
cc: Maria P. Cognetti, Esquire (w/out enc,)
Kim Kuhn (w/out enc,)
::ODMAIPCDOCSiDOCSI11991514
320 Market Street, Strawberry Square 1 p.n Box 12681 Harrisburg, PA 17108-12681717-234-41611717-234,6808 (fax)
www.goldbergkatzman.com
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OFFICE OF DIVORCE MASTER
CUMBERLAND COUNTY
COURT OF COMMON PLEAS
9 North Hanover Street
Carlisle, PA 17013
(717) 240-6535
E. Robert Elicker, II
Divorce Master
Traci Jo Colyer
Office Manager/Reporter
West Shore
697-0371 Ex!. 6535
May 2, 2005
Maria P. Cognetti
Attorney at Law
210 Grandview Avenue
Suite 102
Camp Hill, P A 17011
Paul J. Esposito
Attorney at Law
GOLDBERG & KATZMAN
320E Market Street
P.O. Box 1268
Harrisburg, PA 17108-1268
RE: George Anthony Hinton vs. Kim Louise Hinton, a/k/a, Kim Louise Kuhn
No. 01 - 2494 Civil
In Divorce
Dear Ms. Cognetti and Mr. Esposito:
After discussing on the phone the issue regarding the value of the business and
whether or not we should have an auction, I did think that I heard from both counsel that
neither one ofthe parties wants the business if it is valued at $146,000.00. Consequently,
if! find that wife's appraisal is convincing as to establishing wife's value, then my only
alternative, as I see it, will be to direct that the business be sold. Obviously, I am not
going to give the business to either of the parties if neither of the parties wants the
business. It seems to me like the parties are putting themselves in a box, but that is their
choice.
If! find that the business is worth $50,000.00 and assign the business to husband
at that value, then wife, of course, will file exceptions claiming that I did not properly
interpret her appraiser's valuation. Nevertheless, her argument seems rather moot if all
she expects is that the business should be valued at the higher value and then husband is
to purchase the business which he does not intend to do.
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Ms. Cognetti and Mr. Esposito, Attorneys at Law
2 May 2005
Page 2
You have created a puzzle and it seems to me the only way out of the puzzle is to
put the business on the market for sale and let the market establish the value or proceed
with the auction. Or husband could agree not to challenge wife's value, and since neither
party wants the business at that value, I could recommend the business be sold,
eliminating the need for expert testimony.
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Very truly yours,
E. Robert Elicker, II
Divorce Master
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON, a/k/a,:
KIM LOUISE KUHN,
Defendant
IN DIVORCE
RE: Pre-Hearing Conference Memorandum
DATE: Monday, March 7, 2005
Present for the Plaintiff, George Anthony Hinton,
is attorney Maria P. Cognetti, and present for the
Defendant, Kim Louise Hinton/Kuhn is attorney Paul J.
Esposito.
After considerable discussion this morning about
the status of a business which has been jointly established
and is jointly owned by the parties, counsel have agreed to
certain scheduling with respect to an appraisal and an
auction between the parties. Counsel are going to prepare,
after this memorandum, a condition of auction but
nevertheless, counsel are going to state on the record today
a general statement of the condition of auction in an
outline format which counsel can refine. Counsel will have
the opportunity to review the outline on the record and then
make changes to those conditions based within the framework
that we have established for the auction.
After the value of the business has been
established, either through negotiations or auction or
appraisals and testimony, we will then take testimony with
respect to the factors relating to equitable distribution
and other assets beside the business.
The schedule that we are going to adhere to
with respect to moving this case forward with regard to the
business value and ownership is going to be stated on the
record by attorney Cognetti. Mr. Esposito is here to offer
his comments as well. We are also going to have counsel
state a general outline of the conditions of the auction
which as previously noted will be refined and presented to
both counsel prior to the auction and to the Master. Ms.
Cognetti.
MS. COGNETTI: Mr. Esposito is going to file
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his pretrial statement two weeks from today, which will be
March 21, 2005.
Mr. Esposito is to let the Court and opposing
counsel know by March 21, 2005, whether his client is going
to get her own appraisal of the business and that is to be
in writing by March 21. If she does not want an appraisal,
we will then move to an auction of the business which is
presently scheduled for April 8, 2005, at 9:00 a.m. If she
does want an appraisal, then the appraisal is to be
completed by April 22, 2005, and turned over to opposing
counsel and the Court by April 22, 2005, and then we would
move to a May 12, 2005, hearing which will either be a
hearing or an auction. Counsel will let the Court know how
that date is to be used at that point.
If March 21, 2005, comes and goes and there
is no notice in writing from counsel, then the value of the
business is to be locked in at the $50,000.00 figure
currently per the Bruce Brown appraisal, and the $50,000.00
will also become the starting point of the auction to be
held between the parties.
With regard to the auction, whoever wins the
bid will have 30 to 60 days - and these terms will be
refined - within which to get their financing together and
to prove to opposing counselor the Court that they have the
financing to meet their winning bid or if that person who
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won the bid cannot get the financing, then the business goes
to the other party at the appraised value. In the event
that there is a second appraisal, then the subsequent date
scheduled for this case will be a hearing date to establish
the value of the business.
The terms will be roughly as follows:
With regard to the two vehicles in the respective possession
of each of our clients, if wife wins the bid, husband would
have to purchase his vehicle out of the business. If
husband wins the bid, wife would take her leased vehicle out
of the business and be solely responsible for its payments.
There are two major debts that would go with
the purchase of the business. The first is a joint debt to
All First (now M&T) and it is approximately $25,000.00. The
second is a home equity loan in husband's name alone to Deep
Green Financial of approximately $21,000.00. Whoever has
the winning bid for the business would be responsible for,
A) taking over the All First and getting the person's name
off and B) refinancing the Deep Green Financial unless
husband is the winner of the bid.
There are retainers within the business. It
is basically understood that these monies belong to the
clients and, therefore, do not he affect the purchase of the
business.
Although these terms need to be refined, it
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is expected that the parties will agree to a noncompete such
that the loser of the auction will not be able to take,
whether actively or passively, any then current clients of
the business for a specified time frame which will be worked
out prior to the auction.
Finally, the parties understand that there is
some potential litgation. At this point in time it is
expected that the litigation will follow the business and
will, therefore, if there is a settlement, go to the winner
of the bid.
Again, it is understood that counsel will work
to fine tune these terms as there may be things of which
neither counsel is aware.
THE MASTER: Mr. Esposito, is there anything
you want to add to the record?
MR. ESPOSITO: No.
THE MASTER: The above statement as placed on
the record, in the presence of counsel, shall be considered
a directive by the Master and shall be followed within the
time schedule stated as if the Master had made those
statements on the record rather than attorney Cognetti.
Therefore, the time frame is established as a directive of
the Master, not simply a stipulation of counsel.
cc: Maria P. Cognetti, Attorney for Plaintiff
Paul J. Esposito, Attorney for Defendant
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MARIA P. COGNETTI & ASSOCIATES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102. Camp Hill, PA 17011
Telephone (717) 909-4060 . Fax (717) 909-4068
Email CognettiLaw@ao1.com
Maria p, Cogrtetti'
Attorney at raw
Practice Limited to Matrimonial Law
Todd C Hough
Attorney at Law
*Fellow, American Academy of
Matrimonial Lawyers
Fellow. International Academy of
Matrimonial Lawyers
December 13, 2004
SENT VIA FACSIMiLE (717) 240-7890
E. Robert Elicker, II, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, PA 17013
RE: HINTON v. HINTON
No. 01-2494
Dear Master Elicker:
Per my office manager's discussion with Tracy, I am requesting that the Pre-Hearing
Conference set for February 28, 2005, be rescheduled due to a conflict in my Court
schedule. I am requesting that your office cdntact me in rescheduling this Conference so that
we can avoid any scheduling conflict in the future.
Also, this is to further advise that I have not contacted opposing counsel, Paul
Esposito, and understand that your office will be contacting him with regard to rescheduling
this matter.
Thank you for your anticipated cooperation in this matter.
MPC/af
cc: Paul Esposito, Esquire
Mr. George Hinton
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12/13/2004 18:44 FAX 717 909 4068
MARIA P COGNETTI
I4J 002
MAR1A P. COGNETTI & ASSOCIATES
II C/orney' & CounIelors dr Law
2]0 Grandview Avenue, Suite 102. CGII1p Hill, PA )7011
Tel'phOn, (717) 909-4060 . fa. (717) 909-4068
Emilil Co,gnctti{.aw@aol.t:om
Maria p, Cognetli"
Al10mcyat U\AI
P,'ccriee Limited TO Matrimonial Law
Todd C, Hough
Att~ml;Y tit Law
"Fellow, Amcriciln ~.Jemy of
MaaimonlallAwym
fellow, InlCtnlnional Academy Of
Matrin\ol1ial Llwycrs
December 13, 2004
SENT VIA FACSIMILE (717) 240-7890
E. Robert Elicker, IT, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, PA 17013
RE: HINTON v. HINTON
No. 01-1494
Dear Master Elicker:
Per my officc manager's discussion with Tracy, I am requesting that the ^Pre-Hearing
Conference set for February 28, 2005, be rescheduled due to a conflict in my Court
schedule, I am requesting that your office contact me in rescheduling this Conference so that
we CM avoid any scheduling conflict in the future.
Also, this is to further advise that I have not contacted opposing counsel, Paul
Esposito, and understand that your office will be contacting him with regard to rescheduling
this matter.
Thank you for your anticipated cooperation in this matter.
MPC/af
cc: Paul Esposito, Esquire
Mr. George Hinton
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MARIA P. COGNETTI & ASSOCIATES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102 . Camp Hill, P A 17011
Telephone (717) 909-4060. Fax (717) 909-4068
Email CognettiLaw@ao1.com
Maria P. Cognetti*
Attorney at law
Practice Limited to Matrimonial Law
Todd C Hough
Attorney at law
*Fellow, American Academy of
Matrimonial Lawyers
Fellow, International Academy of
Matrimonial Lawyers
December 1, 2004
E. Robert Elicker, II, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, P A 17013
RE: HINTON v. HINTON
No. 01-2494
Our File No. 232
Dear Master Elicker:
Please be advised that Bruce Brown has now completed his valuation ofthe business
interest involved in the above-referenced matter. As you know, it is my understanding that
Attorney Esposito does not plan to hire an expert at this time. I would therefore request that
you either schedule this matter for a second Pre-trial/Settlement Conference or simply set a
date for a Master's Hearing. If there is any further information that you need from either
Paul or me, please let me know. We will look forward to hearing from you.
MPC/af
cc: Paul Esposito, Esquire
Mr. George Hinton
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
VS.
CIVIL ACTION - LAW
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON, a/kia,
KIM LOUISE KUHN,
Defendant
IN DIVORCE
NOTICE OF PRE-HEARING CONFERENCE
TO: Maria P. Cognetti
, Attorney for Plaintiff
Paul J. Esposito
, Attorney for Defendant
A pre-hearing conference has been scheduled at the
Office of the Divorce Master, 9 North Hanover Street, Carlisle,
Pennsylvania, on the 28th day of February 2005, at 9:30 a.m.,
at which time we will review the pre-trial statements
previously filed by counsel, define issues, identify witnesses,
explore the possibility of settlement and, if necessary,
schedule a hearing.
Very truly yours,
Date of Notice: 12/7/04
E. Robert Elicker, II
Divorce Master
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l:\Client Directory\Hinton-George\Pleadings\Pre- Trial Statement. wpd
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MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUlRE
AttorneyLD, No. 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No, (717) 909-4060
Attorneys for Plaintiff
GEORGE ANTHONY HINTON,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, alklaI
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
PLAINTIFF'S PRE-TRIAL STATEMENT
George Anthony Hinton, Plaintiff, by and through his attorney, Maria P. Cognetti,
Esquire, files the following Pre-Trial Statement:
TABLE OF CONTENTS
I. Background Information
II. Listing of Marital Assets and Debts
III. Listing of Personal Property
IV. Listing of Non-Marital Assets
V. Pensions
VI. Income and Expenses
VII, Counsel Fees and Costs
VIII. Expert Witnesses
IX Non-Expert Witnesses
X Listing of Proposed Exhibits
XI. Proposed Resolution
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March 17, 2004
I. BACKGROUND INFORMATION
A. PARTIES
HUSBAND
NAME George A. Hinton
ADDRESS 16 East Locust Street, Apt. 1, Mechanicsburg,
Pennsylvania
AGE 33
DATE OF BIRTH March 14, 1971
PLACE OF BIRTH Pennsylvania
SOCIAL SECURITY NUMBER 209-52-2570
HEALTH Good
EMPLOYER Hinton & Associates
OCCUPATION Systems Engineer
LENGTH OF RESIDENCY IN PA Entire life
EDUCATIONAL BACKGROUND BS in Electrical Engineering; several
computer certifications related to the business
WIFE
NAME Kim L. Kuhn
ADDRESS 7 Eastwick Court, Carlisle, Pennsylvania
AGE 39
DATE OF BIRTH 11/12/1964
PLACE OF BIRTH Pennsylvania
SOCIAL SECURITY NUMBER 209-58-3284
HEALTH Good
EMPLOYER Hinton & Associates
OCCUPATION Sales Representative
LENGTH OF RESIDENCY IN P A Entire life
EDUCATIONAL BACKGROUND Some college
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I:\Client Directory\Hinton-George\Pleadings\Pre- Trial Statement.wpd
March 17, 2004
B. CHILDREN
NAME AGE DATE OF BIRTH CUSTODIAN
NONE
C. MARRIAGE INFORMATION
DATE OF MARRIAGE July 9, 1999
PLACE OF MARRIAGE Hershey, Pennsylvania
DATE OF SEPARATION November 10,2000
CIRCUMSTANCES OF SEPARATION Irreconcilable Differences
D. PRIOR MARRIAGE
I="'D
IN~'
None
E. CHILDREN OF OTHER RELATIONSHIPSIMARRIAGES
I::SHAND
1 N",
None
F. PROCEEDINGS INFORMATION
DATE ACTION COMMENCED April 27, 2001
DATE OF SERVICE OF COMPLAINT May 3,2001
MANNER OF SERVICE OF Certified Mail
COMPLAINT
ISSUES RAISED IN DIVORCE Equitable Distribution
COMPLAINT
DATE OF FILING OF ANSWER N/A
AND/OR COUNTERCLAIM
ISSUES RAISED IN COUNTERCLAIM N/A
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March 17,2004
BIFURCATION
PREVIOUSLY RESOLVED ISSUES
None
None
II. MARITAL ASSETS AND DEBTS
The following is a listing ofthe marital assets and debts of the parties:
DESCRIPTION TOTAL HUSBAND'S WIFE'S COMMENTS
VALUE POSSESSION POSSESSlON
-.. ---'. ..-..
Vehicles ,.
1999 Kawasaki $5,000.00 $5,000.00
Motorcy1ce
,
Bank Accdullts
Members First $0.00 $0,00
Federal Credit
Union #183469
Legg Mason Value $1,527.72 $1,527.72
Trust - Marital
Shares
Munder NetNet A- S2,142.60 $2,142.60
Marital Shares
Legg Mason - $1,47826 $1,478.26
Opportunity Trust
Business
Hinton & Unknown Unknown If the parties are
Associates unable to agree to
a value, Husband
will ask the Court
to appoint an
appraiser, the cost
of which should
be paid by the
business or split
equally between
the parties.
I:\Client Dircctory\Irinton-George\Pleadings\Pre-Trial Statemcnt.v.'Pd
March 17,2004
DESCRIPTION TOTAL HUSBAND'S WIFE'S COMMENTS
VALUE POSSESSION POSSESSION
Retirement
Accounts
Fidelity Roth IRA - $35.64 $35.64
Marital Share
(formerly Legg
Mason IRA)
Comerica 401(k) $3,210.52 $3,210.52
Debts .
Members First $6,043.90 $6,043.90
Federal Credit
Union
III. LISTING OF PERSONAL PROPERTY
ITEMS RETAINED BY WIFE
DESCRIPTION VALUE
None
ITEMS RETAINED BY HUSBAND -,
DESCRIPTION VALUE
None
IV. LISTING OF NON-MARITALP'RUPERTY
The following is a listing of the non-marital assets of the parties:
No. Description Basis of Exclusion Owner
1. 16 East Locust St., Acquired prior to Husband
Mechanicsburg, P A marrIage
2. 7 Eastwick Court, Acquired prior to Wife
Carlisle, P A marriage
-
I:\Client Directory\Hinton-George\Pleadings\Pre- Trial Statement.wpd
March 17, 2004
No. Description Basis of Exclusion Owner
3 1992 GMC Sonoma Acquired prior to Husband
Truck marnage
4. Waypoint Checking Acquired prior to Husband
Account marnage
5. Members First Federal Acquired prior to Husband
Credit Union Checking marnage
Account
6. Members First Federal Acquired prior to Wife
Credit Union Checking marnage
Account
7. Members First Federal Acquired prior to Wife
Credit Union Savings marnage
Account
8. Legg Mason Value Trust Portion of account Husband
acquired prior to
marriage and after
date of separation
9. MunderNetNet A Portion of account Husband
Account acquired prior to
marriage and after
date of separation
10. The Internet Fund Portion of account Husband
Account acquired prior to
marriage and after
date of separation
II. Fidelity Roth IRA Portion of account Husband
(formerly Legg Mason acquired prior to
IRA) marnage
12. Comerica 40 I (k) Portion of account Wife
acquired prior to
marnage
V. PENSIONS
The following is a listing of the pensions ofthe parties:
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1:\Client Directory\Hinton-Ge'orge\Pleadings\Pre- Trial Statement. wpd
March 17, 2004
PARTY DESCRIPTION
Husband Fidelity Roth IRA (non-marital)
Wife Comerica 401(k) (non-marital)
VI. INCOME AND EXPENSES
Neither party has made a claim for alimony or alimony pendente lite in this matter. Both
parties are working for Hinton & Associates and draw equal income. The business is the parties'
only source of income.
VII. COUNSEL FEES
Neither party has made a claim for counsel fees, costs and expenses.
VIII. EXPERT WITNESSES
The following is a listing of the anticipated experts who may be called to testify in this
case:
NAME
SUBJECT TO TESTIMONY
A Business Valuator
The value of the parties' business.
Additional experts who may be called to testify are not known at this time. If such
additional experts are retained, the Plaintiff reserves the right to call them as witnesses upon
proper notification to the Defendant.
IX. NON-EXPERT WITNESSES
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I:\Client Directory\Hinton-George\Pleadings\Pre- Trial Statement.wpd
March 17, 2004
NAME SUBJECT TO TESTIMONY
George Hinton History of the marriage; identification and
valuation of marital assets and debts; other
relevant testimony relating to the factors set forth
in the Divorce Code.
Kim Kuhn, as of cross History of the marriage; identification and
valuation of marital assets and debts; other
relevant testimony relating to the factors set forth
in the Divorce Code.
Additional witnesses who may be called to testify are not known at this time. If such
additional witnesses are identified, the Plaintiff reserves the right to call them as witnesses upon
proper notification to the Defendant.
X. LISTING OF PROPOSED EXHIBITS
The following is a listing of Exhibits which are anticipated to be submitted at the hearing
in this case:
NO. DESCRIPTION
I Statement reflecting NADA value for 1999 Kawasaki Motorcycle
2 Documentation reflecting payment of Motorcyc1e debt to Members First
Federal Credit Union
3 Statement of account from Members First Federal Credit Union Checking
Account No. 183469
4 Statements of account from Legg Mason Value Trust Account No. 294-
1560526111
5 Statements of account from Munder NetNet A Account No. 0002851418
6 Statements of account from The Internet Fund Account No. 067-067-
6700206403
7 Statements of account from Legg Mason Opportunity Trust Account No.
1189-1560526111
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I:\Client Directory\Hinton-George\Pleadings\Pre-Trial Statement.wpd March 17, 2004
NO. DESCRIPTION
8 Report from Business Evaluator, if needed
9 Statements of account from Fidelity Roth IRA Account No. 345832227
10 Statements of account from Legg mason IRA Account No. 118-83085
11 Statements of account from Comerica 401(k) Account No. 272625
If additional exhibits are identified, Plaintiff reserves the right to submit
additional Exhibits upon proper notification to Defendant.
XI. PROPOSED RESOLUTION
A. EQUITABLE DISTRIBUTION
Plaintiff proposes a fifty-fifty division of the marital property.
B. ALIMONY
Neither party has filed a claim for alimony, therefore no award is appropriate.
C. COUNSEL FEES AND COSTS
Neither party has filed a claim for counsel fees, costs, and expenses, therefore no
award is appropriate.
Respectfully Submitted:
MARIA P. COGNETTI & ASSOCIATES
Date: March 18, 2004
By:
MARIA P. CO ETTI, ESQUIRE
Attorney LD. No. 27914
210 Grandview Avenue, Suite 102
Camp Hill, PA 17011
Telephone No. (717) 909-4060
Attorney for Plaintiff
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I:\Client Directory\Hinton-George\Pleadings\Pre-Trial Statement.wpd
March 17, 2004
CERTIFICATE OF SERVICE
I, Maria P. Cognetti, Esquire, Attorney for P1aihtiffherein, do hereby certify that on this
date I served the foregoing Plaintiff s Pre-Trial Statement by depositing a true and exact copy
thereof in the United States mail, first class, postage prepaid, addressed as follows:
Kim L. Kuhn
7 Eastwick Court
Carlisle, PA 17013
MARIA P. COGNETTI & ASSOCIATES
Date: March 18, 2004
By:
NETTI & ASSOCIATES
0.27914
210 Grandview Avenue, Suite 102
CampHill,PA 17011
Telephone No. (717) 909-4060
Attorney for Plaintiff
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1:IClient DirectoryIHinton-GeorgeIPleadingslinventry-shorl 11-04-03.wpd
November 24, 2003
MARIA P. COGNETTI & ASSOCIATES
MARIA P. COGNETTI, ESQUIRE
Attorney I.D. No. 27914
210 Grandview Avenue, Suite 102
CarnpHill, PA 17011
Telephoue No. (717) 909.4060
Attorneys for Plaiutiff
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, aIkIa
KIM LOUISE KUHN,
Defendant
: CML ACTION - LAW
: IN DIVORCE
INVENTORY AND APPRAISEMENT
OF
GEORGE ANTHONY HINTON
Plaintiff, George Anthony Hinton, files the following inventory of all property owned or
possessed by either party atthe time this action was commenced and all property transferred within
the preceding three years.
Plaintiff verifies that the statements in this inventory are true and correct. Plaintiff
understands that false statements herein are made subject to the penalties of18 Pa.C.S. ~ 4904 relating
to unsworn falsification to authorities.
Date: November 26, 2003
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1:IClient DirectoryIHinton-GeorgeIPleadingslinventry-shorl 11-04-03.wpd
November 26. 2003
ASSETS OF PARTIES
Plaintiff marks on the list below those items applicable to the case at bar and itemizes the
assets on the following pages. If an item has been appraised, a copy of the appraisal report is
attached.
( ) 1. Real property
(X) 2. Motor vehicles
( ) 3. Stocks, bonds, securities and options
( ) 4. Certificates of deposit
(X) 5. Checking accounts, cash
(X) 6. Savings accounts, money market and savings certificates
( ) 7. Contents of safe deposit boxes
( ) 8. Trusts
( ) 9. Life insurance policies (indicate face value, cash surrender
value and current beneficiaries.
( ) 10. Annuities
( ) 11. Inheritances
( ) 12. Patents, copyrights, inventions, royalties
( ) 13. Personal property outside the home
( ) 14. Business (list all owners, including percentage of ownership
and officer/director positions held by a party with company.
( ) 15. Employment termination benefits - severance pay, workman's
compensation claim/award
( ) 16. Profit sharing plans
( ) 17. Pension plans (indicate employee contribution and date plan
vests)
( ) 18. Retirement plans, Individual Retirement Accounts
( ) 19. Disability payments
( ) 20. Litigation claims (matured and unmatured)
( ) 21. Mi1itaryN.A. benefits
( ) 22. Education benefits
( ) 23. Debts you owe (and/or your wife or husband), including
loans, mortgages held, etc.
( ) 24. Household furnishings and personalty (include as a total
category and attach an itemized list if distribution of such
assets is in dispute
( ) 25. Other
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1:IClient DirectorylHinton-GeorgeIPleadingslinventry-short 11-04-03.wpd
November 26. 2003
MARITAL PROPERTY
Plaintiff lists all marital property in which either or both spouses have a legal or equitable
interest individually or with any other person as of the date of separation:
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MARITAL PROPERTY
ITEM DESCRIPTION:
1999 Kawasaki Drifter Motorcycle
OWNERSIDP:
Husband
POSSESSOR:
Husband
DATE ACQUIRED:
5/30/00
COST/ACQUISITION VALUE:
$10,902.50
PRESENT VALUE:
Approx. $5,000.00
NAME AND ADDRESS OF
ANY LIEN HOLDER:
None presently. Husband satisfied
lien of approximately $6,000.00 after
the parties' separation.
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
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MARITAL PROPERTY
ITEM DESCRIPTION:
OWNERSIDP:
POSSESSOR:
DATE ACQUIRED:
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
.-JIl_, ,
Members First Federal Credit Union -
Checking Acct. No. 183469
Husband
Husband
9/16/99
N/A
$0.00 on 11/10/00
None
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MARITAL PROPERTY
INVESTMENTS
ITEM DESCRIPTION:
Legg Mason Value Trust Account No.
294-1560526111 - 105.359 pre-
marital shares
Legg Mason Value Trust Account No.
294-1560526111 - 27.477 post-
marital shares
OWNERSIDP:
Husband
POSSESSOR:
Sold - 1/08/01
DATE ACQUIRED:
Various dates before and after
mamage
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
PRESENT VALUE:
$1,815.13 Value ofrnarital shares
$1,527.72 Value of marital shares at
time of sale
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
n/a
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MARITAL PROPERTY
INVESTMENTS
ITEM DESCRIPTION:
Munder - NetNet A Account No.
0002851418 - 148.732 pre-marital
shares
Munder - NetNet A Account No,
0002851418 - 67.976 post-marital
shares
OWNERSIDP:
Husband
POSSESSOR:
Sold 1/08/01
DATE ACQUIRED:
Various dates before and after
mamage
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
PRESENT VALUE:
$3,232.26 Value of marital shares
$2,142.60 Value of marital shares at
time of sale
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
n/a
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MARITAL PROPERTY
INVESTMENTS
ITEM DESCRIPTION:
The Internet Fund Account No. 067-
067-6700206403 - 33.512 pre-
marital shares
The Internet Fund Account No. 067-
067-6700206403 - 231.806 post-
marital shares
OWNERSmp:
Husband
POSSESSOR:
Sold - 8/28/00
DATE ACQUIRED:
Various dates before and after
rnamage
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
PRESENT VALUE:
N/A
$8,215.20 Value ofrnarital shares at
time of sale
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
n/a
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MARITAL PROPERTY
INVESTMENTS
ITEM DESCRIPTION:
Legg Mason - Opportnnity Trust
Account No. 1189-1560526111
151.461 shares
OWNERSHIP:
Husband
POSSESSOR:
Sold - 1/08/01
DATE ACQUIRED:
Various dates during rnarriage
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
$1,616.09
PRESENT VALUE:
$1,478.26 Value at time of sale
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
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1:IClient DirectoryIHinton-GeorgeIPleadingslinventry-short 11-04-03.wpd
November 26. 2003
NON-MARITAL PROPERTY
Plaintiff lists all non-marital property in which either or both spouses have a legal or
equitable interest, individually or with any other person as of the date of separation:
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
16 East Locust Street, Mechanicsburg,
PA
OWNERSHIP:
Husband
POSSESSOR:
Husband
DATE ACQUIRED:
2/1/96
COST/ACQUISITION VALUE:
PRESENT VALUE:
Unknown
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
National City Mortgage
2/1996
NATURE OF LIEN:
Mortgage
PRESENT AMOUNT OF LIEN:
$66,755.00 as of 6/30/03
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
7 Eastwick Court, Carlisle, P A
OWNERSIDP:
Wife
POSSESSOR:
Wife
DATE ACQUIRED:
3/1/94
COST/ACQUISITION VALUE:
PRESENT VALUE:
Unknown. Information in possession
of Wife.
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
Unknown. Information in possession
of Wife.
Unknown. Information in possession
of Wife.
NATURE OF LIEN:
Unknown. Information in possession
of Wife.
PRESENT AMOUNT OF LIEN:
Unknown. Information in possession
of Wife.
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage.
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
1992 GMC Sonoma Truck
OWNERSIDP:
Husband
POSSESSOR:
Husband
DATE ACQUIRED:
Prior to rnarriage
COST/ACQUISITION VALUE:
PRESENT VALUE:
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
$1,550.00 per NADA
None
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Waypoint Bank Checking Acct. No.
1800016040 (f/k/a Harris Savings)
OWNERSHIP:
Husband
POSSESSOR:
Husband
DATE ACQUIRED:
5/10/98
COST/ACQUISITION VALUE:
n/a
PRESENT VALUE:
ZERO - Account was closed on 9/4/01
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
n/a
BASIS CLAIMED FOR EXCLUSION Acquired prior to date of rnarriage
FROM MARITAL PROPERTY
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NON-MARITAL PROPERTY
OWNERSIDP:
Members First Federal Credit Union -
Savings Acct. No. 183469
Husband
ITEM DESCRIPTION:
POSSESSOR:
Husband
DATE ACQUIRED:
4/17/99
COST/ACQUISITION VALUE:
DATE OF SEPARATION VALUE:
$95.56 on 11/10/00
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
n/a
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR EXCLUSION Acquired prior to date of marriage
FROM MARITAL PROPERTY:
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Members First Federal Credit Union -
Checking Acct. No. unknown
OWNERSIDP:
Wife
POSSESSOR:
Wife
DATE ACQUIRED:
Unknown
COST/ACQUISITION VALUE:
Unknown
DATE OF SEPARATION VALUE:
Unknown. Husband will request
information frorn Wife.
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
None
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR EXCLUSION Acquired prior to date of marriage
FROM MARITAL PROPERTY:
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Members First Federal Credit Union -
Savings Acct. No. unknown
OWNERSHIP:
Wife
POSSESSOR:
Wife
DATE ACQUIRED:
Unknown
COST/ACQUISITION VALUE:
Unknown
DATE OF SEPARATION VALUE:
Unknown. Husband will request
information from Wife.
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
n/a
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR EXCLUSION Acquired prior to date of marriage
FROM MARITAL PROPERTY:
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Hinton & Associates
OWNERSIDP:
Husband - 50%
Wife - 50%
POSSESSOR:
Husband & Wife
DATE ACQUIRED:
8/1/97
COST/ACQUISITION VALUE:
PRESENT VALUE:
Unknown. If the parties are unable to
agree to a value, then, in that event,
Husband will ask the Court to appoint
an appraiser, the cost of which should
be paid by the business or split equally
between Husband and Wife.
NAME AND ADDRESS OF
ANY LIEN HOLDER:
1. George Hinton - Personal Line of
Credit
2. M & T Line of Credit - Husband
and Wife co-signers
3, George Hinton - Co-Signer on Car
Loan
EFFECTIVE DATE OF LIEN:
Various
NATURE OF LIEN:
Business operating expenses
PRESENT AMOUNT OF LIEN:
1. $25,000.00
2. $25,000.00
3. $15,000.00
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Fidelity Roth IRA #345832227
(formerly Legg Mason #118-83085)
OWNERSIDP:
Husband
POSSESSOR:
Husband
DATE ACQUIRED:
10/21/98
COST/ACQUISITION VALUE:
VALUE:
DOM Value $8,830.27
DOS Value $8,865.91
Current Value $6,048.78 AS OF
7/31/03
Marital Value $35.64
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
n/a
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage
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NON-MARITAL PROPERTY
ITEM DESCRIPTION:
Cornerica 401 (k) #272625
OWNERSIDP:
Wife
POSSESSOR:
Wife
DATE ACQUIRED:
Unknown
COST/ACQUISITION VALUE:
PRESENT VALUE:
DOM Value $42,804.70
DOS Value $46,015.22
Current Value unknown. Information
in possession of Wife
Marital Value $3,210.52
NAME AND ADDRESS OF
ANY LIEN HOLDER:
EFFECTIVE DATE OF LIEN:
n/a
NATURE OF LIEN:
PRESENT AMOUNT OF LIEN:
BASIS CLAIMED FOR
EXCLUSION FROM
MARITAL PROPERTY:
Acquired prior to date of marriage
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COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CUMBERLAND, ss:
GEORGE ANTHONY HINTON,
Plaintiff
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
v.
: NO. 01-2494 CIVIL TERM
KIM LOUISE HINTON, aJk!a
KIM LOUISE KUHN,
Defendant
: CIVIL ACTION - LAW
: IN DIVORCE
MOTION FOR APPOINTMENT OF MASTER
GEORGE ANTHONY HINTON, Plaintiff, moves the court to appoint a master with
respect to the following claims:
(X) Divorce
( ) Annulment
( ) Alimony
( ) Alimony Pendente Lite
(X) Distribution of Property
( ) Support
( ) Counsel Fees
( ) Costs and Expenses
and in support of the motion states:
1. Discovery is complete as to the claims for which the appointment of a master is
requested.
2. The non-moving party has appeared in the action personally.
3. The statutory ground(s) for divorce are 23 Pa. C.S.A. Sec. 3301(c).
4. Check the applicable paragraph(s):
( ) The action is not contested.
( ) An agreement has been reached with respect to the following claims:
(X) The action is contested with respect to the following claims: division of property.
5. The action does involve complex issues oflaw or fact.
6. The hearing is expected to take I day.
7. Additional information, if any, relevant to the moti
Date: November 26, 2003
MAP.
Attorney for laintiff
AND NOW,~ 1M{.A.;v :;L,2003, E~. ~,,--ESquire,
is appointed master with respect to the following claims: distribution of property.
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GEORGE ANTHONY HINTON,
Plaintiff
THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON, a/k/a,:
KIM LOUIS KUHN,
Defendant IN DIVORCE
TO:
Maria P. Cognetti
, Attorney for Plaintiff
Kim Louis Hinton/Kuhn
, Defendant
DATE: Monday, December 8, 2003
CERTIFICATION
I certify that discovery is complete as to the claims
for which the Master has been appointed.
OR IF DISCOVERY IS NOT COMPLETE:
(a) Outline what information is required that is not
complete in order to prepare the case for trial
and indicate whether there are any outstanding
interrogatories or discovery motions.
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(b) Provide approximate date when discovery will be
complete and indicate what action is being taken
to complete discovery.
M/1/o3
DATE
NOTE:
PRETRIAL DIRECTIVES WILL NOT BE ISSUED FOR THE
FILING OF PRETRIAL STATEMENTS UNTIL COUNSEL HAVE
CERTIFIED THAT DISCOVERY IS COMPLETE, OR OTHERWISE
AT THE MASTER'S DISCRETION.
AFTER RECEIVING THIS DOCUMENT FROM BOTH COUNSEL
OR A PARTY TO THE ACTION, IF NOT REPRESENTED BY
COUNSEL, INDICATING THAT DISCOVERY IS NOT
COMPLETE, THE DIRECTIVE FOR FILING OF PRETRIAL
STATEMENTS WILL BE ISSUED AT THE MASTER'S
DISCRETION. HOWEVER, IF BOTH COUNSEL, OR A
PARTY NOT REPRESENTED, CERTIFY THAT DISCOVERY
IS COMPLETE, A DIRECTIVE TO FILE PRETRIAL
STATEMENTS WILL BE ISSUED IMMEDIATELY.
THE CERTIFICATION DOCUMENT SHOULD BE RETURNED
TO THE MASTER'S OFFICE WITHIN TWO (2) WEEKS OF
THE DATE SHOWN ON THE DOCUMENT.
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
VS.
CIVIL ACTION - LAW
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON/KUHN,
Defendant
IN DIVORCE
RESCHEDULED PRE-HEARING CONFERENCE
TO: Maria P. Cognetti
, Attorney for Plaintiff
Kim Louise Hinton/Kuhn
, Defendant
A pre-hearing conference has been scheduled at the
Office of the Divorce Master, 9 North Hanover Street, Carlisle,
Pennsylvania, on the 21st day of May 2004, at 9:30 a.m., at
which time we will define issues, identify witnesses, explore
the possibility of settlement and, if necessary, schedule a
hearing.
Very truly yours,
Date of Notice: 3/23/04
E. Robert Elicker, II
Divorce Master
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GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
VS.
CIVIL ACTION - LAW
NO. 01 - 2494 CIVIL
KIM LOUISE HINTON/KUHN,
Defendant
IN DIVORCE
NOTICE OF PRE-HEARING CONFERENCE
TO: Maria P. Cognetti
, Attorney for Plaintiff
Kim Louise Hinton/Kuhn
, Defendant
A pre-hearing conference has been scheduled at the
Office of the Divorce Master, 9 North Hanover Street, Carlisle,
Pennsylvania, on the 29th day of March 2004, at 1:30 p.m., at
which time we will define issues, identify witnesses, explore
the possibility of settlement and, if necessary, schedule a
hearing.
Very truly yours,
Date of Notice: 2/6/04
E. Robert Elicker, II
Divorce Master
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MARIA P. COGNETTI & ASSOCIATES
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Attorneys & Counselors at Law
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210 Grandview Avenue, Suite 102. Camp Hill, PA ]7011
Telephone (717) 909-4060. Fa, (717) 909-4068
Email CognettiLaw@aol.com
Maria P. Cognetti *
Attorney at Law
Practice Limited to Matrimonial Law
M. Teri Hall Stiltner
Attorney at Law
Todd C. Hough
Attorney at Law
"'Fellow. American Academy of
Matrimonial Lawyers
Fellow, International Academy of
Matrimonial Lawyers
July 7, 2004
E. Robert Elicker, II, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, P A 17013
RE: HINTON v. HINTON
Our File No. 232
Dear Master Elicker:
You will recall that some time ago Attorney Esposito and I were on a conference call with
you which, in essence, was our fIrst pre-trial with regard to the above-referenced matter. At that
time we discussed the concept of coming up with some type of joint appraisal of the parties'
business. The three of us had discussed a few scenarios. I was given the task of reporting back to
the court once Attorney Esposito had an opportunity to discuss these issues with his client.
I must now report to the court that we are unable to reach an agreement with regard to
any issue involving vaiuation of the business. Il wuuld appear that Mr. E~posilo's client does not
wish to do any type of joint appraisal. I am unclear as to whether she has plans to get her own
individual appraisal.
I believe that it might be helpful for us to reconvene another conference call in order to
determine how to deal with the issue of the business. If you would like me to be in charge of
setting up the conference call, simply have Tracy convey that to me. Paul and I look forward to
E. Robert Elicker, II, Divorce Master
July 7,2004
Page 2
your input on this matter.
MPC/slf
Cc: Paul J. Esposito, Esquire
Mr. George Hinton
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Very truly yours,
~ ' " !.
MAmA P. COGNETTI & ASSOCIATES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102. Camp Hill, PA 17011
Telephone (717) 909-4060 . Fax (717) 909-4068
Email CognettiLaw@aoLcom
Maria P. Cognetti*
Attorney at Law
Practice Limited to Matrimonial Law
Karen A. Sheriff
Paralegal
*Fellow, American Academy of
Matrimonial Lawyers
"'Fellow, International Academy of
Matrimonial Lawyers
March 18, 2004
E. Robert Elicker, II, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, PA 17013
RE: HINTON V. HINTON
Docket No. 01-2494 Civil Term
Dear Mr. Elicker:
Enclosed in reference to the above case, please find Plaintiff s Pre-Trial Statement.
Thank you for your attention to this matter.
Very truly yours,
/{ttctJ<
MPC/kas
Enclosure
cc: George Hinton (wi encl.)
Kim Kuhn (wi encl.)
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MAmA P. COGNETTI & ASSOCIATES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102. Camp Hill, PA 17011
Telephone (717) 909-4060 . Fax (717) 909-4068
Email cognettilaw@aol.com
Maria P. Cognetti*
Attorney at Law
Practice Limited to Matrimonial Law
Karen A. Sheriff
Paralegal
*Fellow, American Academy of
Matrimonial Lawyers
*Fellow, International Academy of
Matrimonial Lawyers
December 10, 2003
E. Robert Elicker, III, Esquire
Office of Divorce Master
9 North Hanover Street
Carlisle, P A 17013
RE: HINTON v. HINTON
NO. 01-2494
Dear Master Elicker:
Enclosed herewith please find the signed Certification certifying that discovery is
complete in the above-referenced matter.
Very truly yours
M
MPC/tjb
Enclosure
cc: George A. Hinton (w/encl)
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MARIA P. COGNETTI & ASSOCIATES
Attorneys & Counselors at Law
210 Grandview Avenue, Suite 102 . Camp Hill, P A 17011
Telephone (717) 909-4060 . Fax (717) 909-4068
Email CognettiLaw@aolcom
Maria p, Cognetti *
Attorney at Law
Practice Limited to Matrimonial Law
Todd C. Hough
Attorney at Law
Kristi S. Wargo
Paralegal
*FeIlow, American Aca.demy of
Matrimonial Lawyers
Fellow, International Academy of
Matrimonial Lawyers
September 16, 2004
E. Robert Elicker, II, Divorce Master
Cumberland County
9 North Hanover Street
Carlisle, P A 17013
RE: HINTON v. HINTON
Our File No. 232
Dear Master Elicker:
With regard to the above-referenced matter I believe we were charged with getting back
to you on or about September 15th with regard to the status of this matter and furthermore that we
were to have had the report of the business appraiser in hand by this date. I therefore write to
update you as to the current situation.
Subsequent to our last conference call with you and counsel, my client had relented and
was willing to agree to use the appraiser put forth by Attorney Esposito, with the costs to be split
between the parties. I reluctantly conveyed that information to Attorney Esposito because I was,
quite frankly, concerned about piggybacking on someone else's appraisal. Unfortunately, it would
now appear that my instincts were correct. The appraisal to be done by the appraiser of Mrs.
Hinton's choice has not even been started. Moreover, it is my understanding that the appraiser
has not even been contacted. Therefore, I write to advise both you and Attorney Esposito of our
intention at this point in time to go fotward with an independent appraiser of our own choosing. I
would ask the Master's indulgence in giving me an additional ninety (90) days in which to get this
accomplished. I will however wait to hear from you that this is acceptable before I proceed to
hire an appraiser.
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E. Robert Elicker, II, Divorce Master
September 16, 2004
Page 2
I certainly appreciate the court's patience in this matter. I am faxing this letter to Attorney
Esposito ahead of time so that he has an opportunity to determine if I have misstated any of the
facts.
Thank you for your attention to this matter. I will look forward to hearing from you.
.(jr:ura
Maria P.
MPC/slf
cc: Paul J. Esposito, Esquire (via facsimile}
Mr. George Hinton
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March 18, 2005
E. Robert Elicker, II, Esquire
Divorce Master
9 North Hanover Street
Carlisle, P A 17011
Re: Kuhn/Hinton
Docket No. 01-2494
Dear Mr. Elicker:
Enclosed please find Defendant's Pre-trial Statement, together with
Inventory and Appraisement and Marital Assets, in the above-referenced matter.
PJE/sam
Enclosures
cc: Maria P. Cognetti, Esquire (wlenc.)
Kim Kuhn (wlenc.)
: :ODMA IPCDOCiNJOCSll19915\2
5211 Market Street, Strawberry Square 1 P.U. Box 12blll Harrisburg. PA 17108-12681717-234-.+!611 717-234-6808 (fax)
\.v H 'w.gold herg kCl tzma 11. co 11 1
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Paul 1. Esposito, Esquire
l.D. #25454
GOLDBERG KATZMAN, P.c,
320 Market Stre~t
P. O. Box 1268
Harrisburg. PA 17108-1268
(717) 234-4161; (717) 234.4161 (facsimile)
COUfJ8eJ for Plailltiff
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-2494
KIM LOUISE HINTON, alkJa
KIM LOUISE KUHN,
Defendant
CIVIL ACTION - LAW
IN DIVORCE
PRE-TRIAL STATEMENT
AND NOW COMES Defendant, KIM LOUISE HINTON, alkJa, KIM LOUISE KUHN,
by her attorneys, Goldberg Katzman, P.C., and Paul 1. Esposito, Esquire, and files the following
Pre-Trial Statement pursuant to Pennsylvania Rule of Civil Procedure 1920.33(a) and (b):
1. LIST OF MARITAL AND NON-MARITAL ASSETS. - See Inventory and
Appraisement attached hereto.
2. EXPERT WITNESSES. - A business valuator may be called to testify regarding
the value of Hinton and Associates, Inc.
3. OTHER WITNESSES. - Defendant and Kelly Lynn Brown.
4. EXHIBITS -
(a) Report of business valuator;
(b) Statements of accounts identified in Inventory and Appraisement;
(c) NADA Guide for value of motor vehicles;
(d) Others to be determined.
5. INCOME STATEMENT. - Neither party has made a claim for alimony, alimony
pendente lite, or spousal support.
:-,;,':
6. EXPENSE STATEMENT. - Neither party has made a claim for alimony, alimony
pendente lite, or spousal support.
7. PENSIONS. - With the exception of Plaintiff s Fidelity Roth IRA and
Defendant's Comerica 401 k, the parties do not have any pensions or retirements.
8. COUNSEL FEES. - Neither party has made a claim for counsel fees, costs, and
expenses.
9. DISPUTED PERSONAL PROPERTY. - None anticipated.
10. MARITAL DEBTS. - None other than those which are associated with Hinton
and Associates, Inc.
11. RESOLUTION OF THE ECONOMIC ISSUES. -
(a) Defendant proposes an equal division of the parties' marital assets.
(b) Neither party has raised a claim for alimony, alimony pendente lite,
spousal support, counsel fees, costs, and expenses.
Respectfully submitted,
GOLDBERG KATZMAN, P.C.
Date:
~7 It: ~OO!)
,
Paul J. spo' 0
Attorney 1. . #25454
320 Market Street
P.O. Box 1268
Harrisburg, P A 17108-1268
(717) 234-4161
(717) 234-6808 (facsimile)
Attorney for Defendant
: :ODMA IPCDOCSlDOCSI11990711
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Paul 1. Esposito, Esquire
I.D. #25454
GOLDBERG KATZMAN, P.e.
320 Market Street
P. O. Elox 1268
HarristlUrg, PA 17108~1268
(717) 134-4161; (717) 234~4161 (facsimile)
Couns~1 for Defendant
GEORGE ANTHONY HINTON,
Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
NO. 01-2494
KIM LOUISE HINTON, a/k/a
KIM LOUISE KUHN,
Defendant
CIVIL ACTION - LAW
IN DIVORCE
INVENTORY AND APPRAISEMENT
OF
DEFENDANT. KIM LOUISE KUHN
Defendant files the following Inventory and Appraisement of the parties' marital and
non-marital assets, property transferred and marital liabilities.
"....
NON-MARITAL PROPERTY
Item Descriution Owners Current Reason for Exclusion
No. Value
1. 7 Eastwick Court W Acquired prior to marriage
2. 16 East Locust Street H Acquired prior to marriage
3. 1992 GMC Sonoma Truck H Acquired prior to marriage
4. Waypoint Checking H Acquired prior to marriage
Account
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On this
CERTIFICATE OF SERVICE
/ Jltday of March, 2005, I certify that a copy of the foregoing was served
upon the following counsel of record for by delivery same to the following addressees in the
manner indicated:
VIA FIRST CLASS MAIL
Maria P. Cognetti, Esquire
210 Grandview Avenue, Suite 102
Camp Hill, P A 17011
Attorney for Plaintiff
GOLDBERG KATZMAN, P.C.
p~
Supreme Court ID #25454
Attorneys for Deftndant
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Goldberg
Katzman
A full-service law firm,
March 18,2005
E. Robert Elicker, II, Esquire
Divorce Master
9 North Hanover Street
Carlisle, PA 17011
Re:
KuhnIHinton
Dear Mr. Elicker:
In accordance with our discussions at the Pre-hearing Conference on
March 7, 2005, I wish to inform you and Attorney Cognetti that Kim Kuhn will
obtain an appraisal of the business. Accordingly, the proceeding scheduled for
April 8, 2005 will be canceled. In the event the parties are unable to settle prior to
May 12,2005, a hearing will be held on that date to establish the value of the
business. We will immediately proceed with the auction at that time.
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PJE/sam
cc: Maria P. Cognetti, Esquire
Kim Kuhn
::ODMAIPCDOCSIDOCSI1 1991 511
.120 Market Street, Strawberry Square I P.O. Box 1268 I Harrishurg, PA 17108-1268 [ ~ 17-234-4 J 61 I ~ J 7 -234-6808 (fax)
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Ronald M. Katzl1ul1
Paull. Esposito
Neil Hf'nOCf"hnt
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April L. Strang~Kutay
Guy H. Brooks
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Goldberg
Katzman
A full-service law firm.
May 3, 2005
E. Robert Elicker, II, Esquire
Divorce Master
9 North Hanover Street
Carlisle, PA 17011
Re: KuhnIHinton
Docket No. 01-2494
Dear Mr. Elicker:
Enclosed is a copy ofthe Hinton & Associates, Inc., valuation report
prepared by Boles Metzger Brosius & Ritter, P.C.
PJE!sam
Enclosures
cc: Kim Kuhn (w/enc.)
: :ODMA IPCDOCSiDOCSl1 I 9915\3
32!1 Market Stred, Strawberry Square I P.O. Box 12681 Harrisburg, Pi\ 17108-12681717-234-41611717-234-6808 (fax)
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31,2004
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31, 2004
INDEX
Valuation report
Summary
Capitalized earnings method:
Computation of indicated value
Capitalized cash flow method:
Computation of indicated value
Summary of balance sheets
Summary of income statements
Computation of capitalization rate
Computation of adjusted net income
Computation of adjusted cash flow
Pages 1 - 17
Schedule 1
Schedule 2
Schedule 3
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
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BOLES METZGER
'BROSIUS & RITTER PC
WILLIAM B. BOLEs, CPNABV, ASA. CFP
GARY G. GROVE. CPA (RETIRED)
BRIAN 1. METZGER. CPA
BRENT W. EtvnUCK. CPNABV, CFP. MeA
THEODORE D, BROSIUS, CPA
USA A RITTER, CPA. CFE
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
3601 N. FRONT STREET
HARRISBURG. PA 17110
PHONE; (717) 238-0446
FAX: (7l7) 238-3960
www.bmbrcna.com
MEMBERS
AMERlCAN AND PENNSYL V ANlA INSSTITUTES
OF CERTIFIED PUH"Ie ACCOUNTANTS
CPASNET COM
April 22, 2005
Attorney Paul J. Esposito
Goldberg Katzman
320 Market Street, Strawberry Square
PO Box 1268
Harrisburg, PA 17108-1268
We have been requested to estimate the value of Hinton & Associates, Inc. common
stock (also referred to in this report as the Company) as of December 31, 2004. This
valuation has been prepared specifically for the marital dissolution of George A. Hinton
and Kim L. Kuhn, and cannot be used for other purposes.
We have prepared this estimate of value on the presumption that value is equivalent to
"fair market value" and that "fair market value" is that price at which a willing buyer will
buy and a willing seller will sell an item of property, in an arms-length transaction with
neither one being under any compulsion to buy or sell, and with both having
reasonable knowledge of all relevant facts.
Based on the information contained in the following narrative report, in our opinion, the
fair market value of Hinton & Associates, Inc. for marital dissolution purposes as of
December 31, 2004, is $146,684.
Our opinion of value is subject to the assumptions and limiting conditions set forth in this
report.
Respectfully submitted,
Boles Metzger Brosius & Ritter PC
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William B. Boles, CPAfABV, ASA
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Michael W. Zelko, CPAfABV
1
Assumptions and Limitina Conditions
a. This report is a limited summary appraisal report designed to give an opinion of fair
market value. It is not an accounting report, and it should not be relied upon to
disclose hidden assets or to verify financial reporting. It is an opinion of the value of
Hinton & Associates, Inc. as of December 31, 2004. While certain information such
as a detailed description of the economy, industry analysis and a detailed analysis of
the Company's financial statements have been omitted from this report, we have
considered these factors in our analysis.
b. We have accepted the tax returns, financial statements and other financial
information provided to us by Ms. Kuhn without testing their accuracy. The accuracy
of the information provided to us is the responsibility of Ms. Kuhn in her capacity as
President of Hinton & Associates, Inc.
c. We have relied on representations made by Ms. Kuhn about the background and
history of the Company. She has acknowledged to us that the information provided
to us is complete and accurate. However, we assume no responsibility for the
accuracy of this information.
d. BSSF has prepared a business valuation report for the Company as of December
31, 2003. We have relied upon certain portions of this report which were based in
part upon BSSF's interview of George A. Hinton.
e. All facts and data as set forth in this report were obtained from sources considered to
be reliable. However, we assume no liability for the accuracy of the information
provided to us by others.
f. This valuation report is based upon facts and conditions existing as of the date of
valuation. We have not considered subsequent events. Unless specifically requested
by the client and agreed upon by us, we have no obligation to update our report for
such events and conditions.
g. The estimate of value opined to in this report is valid only for the marital dissolution
of George A. Hinton and Kim L. Kuhn, and may not be used for any other purpose.
2
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Profile of the Company
Hinton & Associates, Inc. provides computer network design, installation and on-going
support including PC/printer/server diagnosis and repair as well as application training.
Additionally the Company resells hardware and software to clients based on technical
recommendations.
The Company was founded in 1997 by Ms. Kuhn and Mr. Hinton, and currently
maintains two offices with related expenses in each of their respective individual homes.
Ms. Kuhn is the President of the Company and Mr. Hinton functions as Vice President.,
with each owning 50 percent of the stock.
Basis of Accountina
Hinton & Associates, Inc. prepares its financial statements on the accrual basis of
accounting, which means income is recognized as it is earned and expenses are
recognized as they are incurred whether or not cash is received or paid out at that time.
Adiusted Net Income
In our analysis of the value of Hinton & Associates, Inc., we reviewed the Company's
historical income statements for the years December 31, 2002, 2003 and 2004. In order
to determine the business's earnings capacity, it was necessary to adjust its income
statements for non-operating revenues and expenses, unusually high or low expenses,
and discretionary expenses. Exhibit 4 shows the adjustments made to the business's
income statements.
The Company's auto expense includes vehicles for both owners. Mr. Hinton's vehicle is
owned by the Company while Ms. Kuhn's vehicle is not. In our opinion a hypothetical
buyer would only need one vehicle. Also, Mr. Hinton has estimated that approximately
20 percent of the use of his vehicle is personal in nature. We have reduced auto
expense by approximately 75 percent overall.
We have made adjustments to add back to income items related to the Company's
offices. Currently, each owner maintains offices in their respective homes. A
hypothetical buyer would have no need to keep two offices. We have made an
adjustment to reduce office expenses by 50 percent.
The Company paid rent expense in excess of fair market value to the owners. We
agree with BSSF's valuation report that based on the Company's type and size, a
reasonable rent expense for facilities would be $24,000. We have adjusted rent
expense to reflect this amount for each year included in our study.
An adjustment was made to reduce telephone expense by 30% for each year. This
adjustment is based on representations made by Mr. Hinton in BSSF's valuation report.
Meals expense was eliminated as these expenses are considered to be personal in
nature.
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Miscellaneous income and interest income are considered to be non-operating in nature
and therefore have been excluded from income.
The BSSF report adjusted salaries to reflect a reasonable level of wages based on the
size of the business and staffing needs. The wages that were used in the BSSF report
were for the year ending December 31, 2003. We have taken these amounts and
increased the BSSF wage adjustment by 3% for 2004 and decreased 2002 by a similar
percentage to reflect changes in inflation over that time period.
An adjustment was made to add back excess depreciation. Mr. Hinton's vehicle was
depreciated in full over a five year period; however, it is our estimate that as of
December 31, 2004 Mr. Hinton's vehicle would have retained 50 percent of its original
cost of approximately $37,000. Additionally, in the BSSF report Mr. Hinton estimates
that approximately 20 percent of the use of the vehicle is personal in nature. We made
an adjustment to show depreciation expense based on 50 percent of the vehicle's value
and have made an additional adjustment to add back to income 20 percent of the
adjusted depreciation expense on this vehicle for each year included in our study.
RMA Annual Statement Studies
In performing the valuation study we considered industry statistics from Risk
Management Associates (RMA). RMA recommends that Statement Studies data be
regarded only as general guidelines and not as absolute industry norms. It should be
noted that. the information collected by RMA is not selected by any random or
statistically reliable method. As such, the information utilized from the RMA Studies
was considered only as a general guideline.
Search for Guideline Companies
We reviewed various sources to determine if any comparable publicly-traded companies
existed from which we could derive various price/earning ratios, price/book value ratios,
etc. We found no publicly traded companies that we considered comparable to the
subject company.
Computation of Capitalization Rate under the Build Up Method
Unlike some aspects of valuing a business, small changes in capitalization rates can
make a substantial difference in the value arrived at by an appraiser. Accordingly, when
the standard of value is fair market value, the correct capitalization rate is the rate
available on other comparable investments adjusted for differences in risk and other
factors.
Therefore, as shown in Exhibit 3, we have started with the rate, as of the appraisal date,
available on long-term bonds. The rate utilized is as reported by U.S. Financial Data,
published by the Federal Reserve Bank of St. Louis.
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The equity risk premium, as detailed in Ibbotson's Stocks, Bonds, Bills and Inflation
2005 Yearbook, is the difference in premium, between stocks and bonds. This
yearbook is a statistical history of market results from 1926 to 2004. The equity risk
premium is added to the treasury yield to develop an average market return. This is the
extra return earned by an average equity investor in excess of the return on long-term
treasury securities. In other words, it attempts to measure the rate of return that an
average investor would consider adequate for an investment in a Standard & Poor's 500
Company. The equity risk premium has been reduced by 1.25% to reflect the arithmetic
average of the geometric average of the equity risk premium based on a study by Roger
Grabowski, ASA, of Standard and Poor's Value Consulting.
The average market return is then adjusted to take into consideration the additional risk
inherent in a small closely-held company, There is more risk associated with a c1osely-
held company than with a major publicly-traded S&P 500 company. Therefore the
capitalization rate must be adjusted to take into consideration this additional risk.
We have utilized Ibbotson's "micro-capitalization equity size premium" of 4.54 percent.
This premium relates to companies with less than $263 million in capitalization.
The rate is then adjusted for other risk factors inherent in the industry and the company
being valued. We have adjusted the capitalization rate an additional 6.0 percent to
account for other risk factors. Taken into consideration were such items as the stability
of the Company's industry, the industry's potential for growth, the Company's earnings
diversity and stability of income, the location and market position of the Company, the
competitiveness of the relevant industry and an assessment of the management of the
Company.
The discount rate for net cash flow is converted to a discount rate applicable to net
earnings by adding an increment specific to net earnings. We have utilized 4.0 percent.
One method of developing a company's net earnings discount rate or increment specific
to earnings is to develop a conversion rate based on a range of typical differences
between dividend yields (dividends/stock price) and earnings yields (earnings/stock
price) of public companies. While there have been no definitive studies at this point,
many experienced practitioners believe that this difference most typically ranges from 2
percent to 6 percent.
In order to convert the discount rate for net earnings to a capitalization rate for net
earnings, the expected long-term average compound growth rate is subtracted from the
discount rate for net earnings. We estimate the long-term growth rate to be
approximately 3.0 percent. This adjustment renders the net earnings capitalization rate
applicable to the next year. To apply the capitalization rate to the Company's recent
historical benefit stream it should be divided by 1 plus the projected growth rate. As
detailed in Exhibit 3, the capitalization rate derived under this method is 21.76 percent.
In our opinion, this capitalization rate is representative of the current environment.
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Valuation Methods Reiected
Liquidation Value Method
Liquidation value is the value of the Company's assets (minus liabilities) valued as if
they were to be sold in an orderly, piecemeal manner. Although we considered the
liquidation value of Hinton & Associates, Inc., we rejected the method as an accurate
indicator of its fair market value as of December 31, 2004 due to our opinion that the
Company was a going concern at that date.
Adjusted Book Value Method
A business's adjusted book value is calculated by adjusting the Company's assets and
liabilities from their book value to their estimated fair market value as of the date of
valuation. In a going concern business, fair market value usually is depreciated
replacement cost However, like the liquidation value method, the adjusted book value
method does not consider the business's earnings capacity. The adjusted book method
is used primarily to value holding companies or businesses that do not possess goodwill
value. Because Hinton & Associates, Inc.'s value is derived primarily from its earnings
flow, we rejected the adjusted book value method as an appropriate method to
determine the business's fair market value.
Discounted Cash Flows Method
The discounted cash flows method is used primarily when a company's fair market
value is related to its earnings. In the valuation of Hinton & Associates, Inc. we
considered the discounted cash flows method and rejected it as an appropriate method
in this case due to the lack of reliable financial forecasts in relation to the size and risk
profile of the entity being valued.
Valuation Methods Accepted
The methods employed in reaching our conclusions included the following:
1. Capitalized Earnings Method
2. Capitalized Cash Flow Method
Capitalized Earnin!:ls Method
Conceptual Basis
The capitalized earnings method values the business based on an expected stream of
earnings capitalized by a risk-adjusted rate of return. This method is used primarily to
value companies whose earnings are expected to remain stable and whose value is
based on its projected earnings stream. The steps involved in using the capitalized
earnings method.
1. Determine the appropriate capitalization rate.
2. Estimate the business's pro-forma sustainable earnings.
3. Capitalize the sustainable earnings into an operating value.
6
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Income to be Capitalized
In order to estimate the Company's fair market value using the capitalized earnings
method, it is necessary to determine Hinton & Associates, Inc.'s sustainable earnings
base as of date of valuation. The first step is to adjust the historical earnings stream.
Our adjustments are detailed in Exhibit 4.
The second step, weighting the adjusted income statements and calculating the
weighted-average earnings base, is presented in Schedule 2. The most weight is
placed on the most recent year with less weight being given to each preceding year
because usually the most recent year is more indicative of the future.
Finally, the weighted average net income is capitalized at an appropriate rate. The
capitalization rate of 21.76 percent is calculated in Exhibit 3 and is discussed earlier in
this report.
Summary and Indicated Value Estimate
In our opinion, the value of Hinton & Associates, Inc. under the capitalized earnings
method is $139,674 as shown in Schedule 2.
Capitalized Cash Flow Method
Conceptual Basis
The capitalized cash flow method values the business based on the cash flow of the
Company capitalized by a risk-adjusted rate of return. This method is used primarily to
value companies whose cash flow is expected to remain stable and whose value is
based on its projected cash flow stream. This method is very similar to the capitalized
earnings method.
The capitalized cash flow method was presented in the valuation report prepared by
BSSF for the year ended December 31, 2003. We have included this method to
compare to the values calculated by BSSF. BSSF used only the December 31, 2003
year end financial information in their calculation of value. Our calculation of value in
this report uses a three year weighted average of the years ended December 31, 2002,
2003 and 2004.
Cash Flow to be Capitalized
In order to estimate the Company's fair market value using the capitalized cash flow
method, it is necessary to determine Hinton & Associates, Inc.'s sustainable cash flow
base as of date of valuation. The first step is to adjust the historical earnings stream.
Our adjustments are detailed in Exhibit 4 and 5. The only adjustment that we made to
go from adjusted net income to adjusted cash flow was to add back all of the
depreciation taken by the Company during each year.
The second step, weighting the adjusted cash flow and calculating the weighted-
average cash flow, is presented in Schedule 3. As in the capitalized earnings method,
the most weight is placed on the most recent year with less weight being given to each
preceding year because usually the most recent year is more indicative of the future.
Finally, the weighted average cash flow is capitalized at an appropriate rate. The
capitalization rate of 21.76 percent is calculated in Exhibit 3 and is discussed earlier in
this report.
7
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Summary and Indicated Value Estimate
In our opinion, the value of Hinton & Associates, Inc. under the capitalized cash flow
method is $153,695 as shown in Schedule 3.
Relative Importance of Each Method
When comparing the values, as listed on Schedule 1, it is necessary to determine the
importance of each method.
The capitalized earnings and capitalized cash flow methods are frequently used
valuation methods, and are very similar. These methods allow a weight to be applied to
each year of earnings in an effort to recognize that the trend in effect is predominantly
the trend that will continue. Implicit in this assumption is that the economic, political,
and social environment in effect at the time the earnings were generated continues, and
that the basic characteristics of the organization that generated those earnings have not
materially changed.
Due to the similarities of the two methods we have placed a 50 percent weight on each.
8
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Summary
Based upon the information obtained, the procedures followed and the assumptions
made as set forth above, a reasonable estimate of the market value of Hinton &
Associates, Inc., for marital dissolution purposes, as of December 31,2004 is $146,684.
However, because the validity of the assumptions made could be ultimately determined
only as a result of litigation, if a controversy were involved, and because actual fair
market value can only be determined by bona fide bargaining between well informed
buyers and sellers, we do not represent that the amount set forth above will be the
amount ultimately so determined.
April 22, 2005
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William B. Boles, CPNABV, ASA
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Michael W. Zelko, CPNABV
9
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Certification of Appraiser
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true
and correct.
2. The reported analyses, opinions, and conclusions are
limited only by the reported assumptions and limiting
conditions, and represents our unbiased professional
analyses, opinions and conclusions.
3. We have no present or prospective interest in the property
that is the subject of this report, and we have no personal
interest or bias with respect to the parties involved.
4. Our compensation is not contingent on an action or event
resulting from the analyses, opinions, or conclusions in, or
the use of, this report.
5. Our analyses, opinions, and conclusions were developed,
and this report has been prepared in conformity with
Uniform Standards of Professional Appraisal Practice.
6. This valuation report has been prepared by Michael W.
Zelko, CPAlABV and Brent W. Emrick, CPAlABV, CFP
under the supervision of William B. Boles, CPAlABV,
ASA, CFP.
7. The American Society of Appraisers and the American
Institute of Certified Public Accountants have mandatory
recertification programs for all of their members. We are
in compliance with these programs.
10
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Appendix A:
Professional Parameters
The American Society of Appraisers is a professional organization of individuals.
International in structure, it is self-supporting, unaffiliated and independent. The
society works cooperatively for the elevation of the appraisal profession. It is one of
eight major appraisal societies that helped to found the Appraisal Foundation, a
national self-regulatory organization created in 1987 to establish uniform qualification
criteria for professional appraisers, to develop standards for appraisal work, and to
provide other programs to serve the Public.
The only major appraisal organization representing all of the disciplines of appraisal
specialists, the Society was originated in 1936 and incorporated in 1952. It is
headquartered in suburban Washington, D.C.
Society members include specialists in business valuation, machinery and
equipment, personal property (fine arts, antiques, residential contents, gems and
jewelry, and a variety of other subjects), real property (residential, commercial,
industrial, and agricultural), and technical valuation (public utilities, industrials, natural
resources, and others); in short, all types of property, tangible and intangible, real or
personal
Each Society member who has conclusively demonstrated that he or she is qualified
to appraise one or more kinds of property has been certified. Such certification is
predicated upon Society criteria: intensive written examinations, submission of
representative appraisal reports and screening of applicant's practice and ethics.
With five years or more of full-time valuation experience members may use the
professional designation ASA (Accredited Senior Appraiser). With more than two
years but less than five years of experience members may use the professional
designation AM (Accredited Member).
Senior appraisers are required to recertify, every five years, through a mandatory
continuing education process.
Ethical practices and conduct required of Society members are clearly defined in The
Principles of Appraisal Practice and Code of Ethics of the American Society of
Appraisers.
International Board of Governors
Resolution # 6-71-4
Revised 6-88
11
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Appendix B:
Appraiser's Qualifications
STATEMENT OF APPRAISER QUALIFICATIONS
Overview
Boles Metzger Brosius & Ritter PC is a full service consulting and public accounting
firm with an excellent reputation and a recognized expertise in the area of business
valuation services.
William B. Boles, CPA, ASA, CFP directs the Business Valuation Division of Boles
Metzger Brosius & Ritter PC. Bill is an Accredited Senior Appraiser with the
American Society of Appraisers in the business valuation area. He has over 30 years
of practical experience in valuing a diverse array of business entities and types. Bill's
experience combined with the experience and talents of the other members of his
team, allows us to value just about any type of business.
Bill's team consists of Michael W. Zelko, CPAJABV and Brent W. Emrick, CPAJABV,
MBA, CFP.
The team has valued businesses and business interests of all sizes, from small
proprietorships to large corporations.
We have also valued intangible assets such as goodwill, employment agreements,
securities and copyrights. We have prepared merger and acquisition studies,
employee stock ownership plan analysis, and other similar studies.
Our work is used frequently in annual ESOP plan administration, estate and gift tax
planning, buy/sell agreements, securities litigation, and marital dissolution. We have
served as expert witnesses in a number of related litigation cases.
Our valuation engagements include such diverse tasks as structuring and
implementation of professional practice retiremenUbuyouts, the determination of
economic losses in deprivation of value litigation including personal injury, contract
disputes and eminent domain.
Our office is located at:
3601 North Front Street
Harrisburg, PA 17110
Tel: (717) 238-0446
12
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STATEMENT OF APPRAISER QUALIFICATIONS
Experience:
Our Company has extensive experience in the valuation of both small and large companies
in a wide variety of industries. The following is a partial list of various kinds of businesses for
which we have supplied business valuation services:
Agricultural Entities
Architectural Firms
Automobile Dealerships
Beer Distributors
Construction Companies
Dry Cleaners
Environmental Engineering Firms
Electrical Connector Manufacturers
Financial Institutions
Fuel Oil Suppliers
Gasoline Service Stations
Valuation Library:
Law Practices
Machine Shops
Manufacturing Companies
Medical Practices
Packaging Companies
Real Estate Developers
Restaurants
Varied Retailers
Various Wholesalers
Woodworking Shops
Valuing Small Businesses and Professional Practices, First Edition, Dow Jones Irwin,
Shannon P. Pratt.
Valuing a Business - The Analvsis of Closelv-Held Companies, Second and Third
Editions, Dow Jones Irwin, Shannon P. Pratt.
Handbook of Small Business Valuation Formulas and Rules of Thumb. Second and
Third Editions, Valuation Press, Desmond and Marcello and Glenn Desmond, respectively.
Guide to Business Valuations. Practitioners Publishing Company, Jay E. Fishman, et.a\.
Financial Valuation: Business and Business Interests. Maxwell, Macmillian, et.al. James
H. Zukin. .
Handbook of Business Valuation, John Wiley & Sons, Inc., et.al. Thomas L.West and
Jeffrey D, Jones
Federal Tax Valuation. Warren, Gorham & Lamont, John A, Bogdanski.
Quantifving Marketabilitv Discounts, Peabody Publishing, LP, Z, Christopher Mercer
Business Valuation Review. The Quarterly Journal of the Business Valuation Committee of
the American Society of Appraisers, 1988 through present.
Shannon Pratt's Business Valuation Update Online, Business Valuation ResourcesLLC,
Shannon Pratt, et. al.
Cost of Capital Estimation and Applications. Shannon P. Pratt.
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13
STATEMENT OF APPRAISER QUALIFICATIONS
Stocks. Bonds, Bills and Inflation, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999,
2000,2001,2002,2003,2004 and 2005 Yearbooks, Ibbotson Associates.
RMA Annual Statement Studies. 1988 through 2005, RMA.
Valuina Financial Institutions. Business One Irwin, Z. Christopher Mercer.
Valuing Intangible Assets, McGraw Hill, Robert F. Reilly and Robert P. Schweihs.
Valuation of a Closelv Held Business, AICPA, Small Business Consulting Practice Aid.
IRS Valuation Guide for Income. Estate and Gift Taxes, IRS Appeals Officer Valuation
Training Program, Commerce Clearing House, Inc. .
Pratt's Stats Online, Business Valuation Resources, LLC.
Futures. Ootions, and Swaos, Blackwell Publishers, Inc., Robert W. Kolb
Guideto Business Valuations, PPC, Jay E. Fishman, Shannon P. Pratt, J Clifford Griffith,
D. Keith Wilson.
U.S. Financial Data, Federal Reserve Bank of St. Louis
14
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WILLIAM B. BOLES, CPAlABV, ASA, CFP
Curriculum Vitae
BOLES METZGER BROSIUS & RITTER PC
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL EXPERIENCE:
. Boles Metzger Brosius & Ritter PC (Shareholder 1978 to present)
o General accounting practice, including representing and advising clients in all
tax matters; business valuations, divorce and estate planning. Consulting in
business valuation and litigation support services since 1978, such services
include ESOP annual as well as initial valuations, board of director tender offer
evaluations, estate and gift taxation matters, domestic relation issues-
equitable distribution, depredation of value or income litigation, planning for
buy, buy/sell agreements, valuation of intangibles, and the purchase and sale
of a business, valuation of family limited partnership.
. BGM Financial Associates, Ltd. (Shareholder 1992 to present)
o Financial planning and investment management, including advising clients in
all financial areas.
. Laventhol & Horwath (Director of Tax Services 1969 to 1978)
o Represented and advised various corporations, partnerships, trusts and
individuals in all tax matters.
. United States Internal Revenue Service (Revenue Agent, Field Audit Division 1964 to
1969)
o Numerous individual and corporate tax examinations, both civil and criminal.
EDUCATION AND PROFESSIONAL DESIGNATIONS
. University of Drexel, Pennsylvania - Bachelor of Science
. Certified Public Accountant
. Senior Member of the American Society of Appraisers, Business Valuation Division
. Certified Financial Planner
PROFESSIONAL AND CIVIC ACTIVITIES
. American Institute of Certified Public Accountants, Member
o Member of Tax Division
. Pennsylvania Institute of Certified Public Accountants, Member
o Member, Federal Tax Committee
o Chairman, Federal Tax Committee 1998-2000
o Testified on behalf of Pennsylvania Institute of Certified Public Accountants on
Governance and Oversight of the IRS and Taxpayer Protection and Rights,
December 10, 1997, Hearings held by Senator Santorum and U.S.
Representative Goodling
o Federal Tax Conference, Speaker, Valley Forge & Harrisburg, 1997
o Controllers Conference, Speaker, Trevose, 2002, (Business Valuation
issues/succession planning)
o Estate and Personal Financial Planning Conference, Speaker, Hershey, 2002
15
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WILLIAM B. BOLES, CPAlABV, AS A, CFP
Curriculum Vitae, continued
. South Central Chapter Pennsylvania Institute of Certified Public Accountants
o President 2001-2002
o President-Elect 2000-2001
o Vice President 1999-2000
o Secretary 1998-1999
o Treasurer 1997 - 1998
o Past Chairman of Tax Committee
o Member of various committees such as Speakers Bureau, Legislative, Tax,
Technical Meetings
o Speaker various educational seminars on tax and business valuation topics
including Dauphin County Bar Association Lunch and Learn, PICPA South
Central Chapter December 1997 Business Valuation Update, December 1998-
2003 Federal Tax Update.
. American Society of Appraisers, Member
o Accredited as Senior Appraiser in 1992; Recertified in 1997 and 2002
o I nternational Appraisal Conference ASA, Toronto 1996
o .. Joint Business Valuation Conference ASAlCIBV, Montreal 1998
o International Appraisal Conference ASA, Boston 1999
o International Appraisal Conference ASA, Tampa 2003
o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal
Education Completion Certificate, 15 hour course and exam, November 1994
o ASA Uniform Standards of Appraisal Practice, USPAP, ASA Appraisal
Education Completion Certificate, 15 hour course and exam, August 1999
. Hampden Township Vacancy Board -Past Member 1978-2000
. Hampden Township Industrial Development Authority-Past Chairman 1978 - 2000
. Parents Anonymous of Pennsylvania-Past Treasurer
. Central Pennsylvania College Educational Foundation-Chair of Board of Trustees
2004
EXPERT WITNESS:
. Service was provided as an expert witness with regard to valuing businesses or
business interests or evaluating income form marital dissolution matters such as
equitable distribution and/or spousal support; appointment of guardian for an
incompetent person in Orphans Court and a business transaction litigated in Federal
Court. Service was also provided for several arbitration hearings regarding business
valuation disputes. Either direct testimony or depositions were provided in Dauphin,
Cumberland, Lebanon, York, Lancaster, Lycoming, Mifflin and Franklin Counties of
Pennsylvania and also in South Carolina.
16
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MICHAEL W. ZELKO, CPAlABV
Curriculum Vitae
BOLES METZGER BROSIUS & RITTER PC
CERTIFIED PUBLIC ACCOUNTANTS
PROFESSIONAL EXPERIENCE:
. Boles Metzger Brosius & Ritter PC (Professional staff, 1987 to 1991, Senior 1991 to
1995, Supervisor of Business Valuation Department 1997 to present)
o General accounting practice, including audit, review and compilation
procedures for corporations, local governments and non-profit organizations.
Preparation and review of corporate, partnership, individual and fiduciary tax
returns, and corporate and personal income tax planning, preparation of
business valuations for Employee Stock Ownership Plans, mergers and
acquisitions, divorce, and estate and gift tax issues, and management
advisory services.
. BGM Financial Associates, Ltd. (Supervisor, 1996 to 1999, Shareholder, 2000)
o Financial planning and investment management, including serving on the
Investment Committee for the selection of appropriate investments for clients
in all planning areas
. Villa Teresa (Controller 1995 to 1996)
o Responsible for all financial affairs of 184 bed nursing home, including
managing accounting staff, preparation of financial statements, filing
appropriate tax forms with federal and state taxing bureaus, preparation of
Medicare and Medicaid cost reports, management of pension plan and
investments.
EDUCATION AND PROFESSIONAL DESIGNATIONS
. York College of Pennsylvania, Bachelor of Science, 1987
. Certified Public Accountant, 1992
. Accredited in Business Valuation by the American Institute of Certified Public
Accountants, 1999
PROFESSIONAL AND CIVIC ACTIVITIES
. American Institute of Certified Public Accountants, Member since 1992
. Pennsylvania Institute of Certified Public Accountants, Member since 1992
. Speaker and organizer for continued education programs presented by Boles Metzger
Brosius & Ritter PC as an approved sponsor by the Pennsylvania State Board of
Accountancy.
. Chairman Business Valuation Committee
o South Central Chapter, Pennsylvania Institute of Certified Public Accountants,
1997
. Treasurer Lawton Athletic Association 1999, 2000
. School Board member St. Catherine Laboure School 2000-2001
. Finance Committee member St. Catherine Laboure Church
17
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31, 2004
SUMMARY
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Valuation method
Capitalized Capitalized
earnings cash flow
method method
(Schedule 2) (Schedule 3)
Indicated values $139,674 $153,695
Weights 50.0% 50.0%
Weighted indicated values 69,837 76,847
Total indicated value $146,684
Schedule 1
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31,2004
CAPITALIZED EARNINGS METHOD
COMPUTATION OF INDICATED VALUE
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Adjusted Weighted
net income Weighting net
Year (Exhibit 4) factor income
Computation of weighted 2004 $30,777 3 $92,331
average adjusted net 2003 8,783 2 17,566
2002 72,461 1 72,461
Total 6 182,358
Weighted average net income 30,393
Capitalization rate (Exhibit 3) 21.76 %
Total indicated value $139,674
Schedule 2
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31,2004
CAPITALIZED CASH FLOW METHOD
COMPUTATION OF INDICATED VALUE
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Adjusted Weighted
cash flow Weighting net
Year (Exhibit 5) factor income
Computation of weighted 2004 $33,657 3 $100,971
average adjusted net 2003 11,663 2 23,326
2002 76,366 1 76,366
Total 6 200,663
Weighted average net income 33,444
Capitalization rate (Exhibit 3) 21.76 %
Total indicated value $153,695
Schedule 3
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HINTON & ASSOCIATES, INC.
BALANCE SHEETS
DECEMBER 31, 2004, 2003 AND 2002
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ASSETS
2004 2003 2002
Total current
assets $105,978 $48,433 $97,163
Net property
and equipment 4,964 12,411 19,858
Other assets
Total assets $110,942 $60,844 $117,021
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current
liabilities $102,992 $71,484 $109,815
Noncurrent liabilities
Shareholders' equity 7,950 (10,640) 7,206
Total liabilities and
shareholders' equity $110,942 $60,844 $117,021
Exhibit 1
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HINTON & ASSOCIATES, INC.
SUMMARY OF INCOME STATEMENTS
YEARS ENDED DECEMBER 31,2003,2002 AND 2001
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2004 2003 2002
Net revenues $479,585 $381,380 $424,250
Cost of sales 199,062 145,767 108,247
Gross profit 280,523 235,613 316,003
Operating expenses 265,655 241,228 275,365
Net income from operations 14,868 (5,615) 40,638
Other income 3,722 269 407
Net income $18,590 ($5,346) $41.045
Exhibit 2
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31, 2004
COMPUTATION OF CAPITALIZATION RATE
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Appraisal date long-term bond yield' 4.92 %
Equity risk premium, stocks over bonds .. 5.95
Average market return 10.87
Benchmark premium for size .. 4.54
Adjustment for other risk factors 6.00
Discount rate for net cash flow 21.41
Increment specific to net earnings 4.00
Discount rate for net earnings 25.41
Less sustainable average compound growth rate or "G" (3.00)
Net earnings capitalization rate for next year 22.41
Divided by "G" plus one 103.00
Net earnings capitalization rate for current year 21.76 %
. Source - U.S. Financial Data, Federal Reserve Bank of S1. Louis, January 25, 2005 issue.
Yield at December 31,2004 of long-term Treasury Securities
.. Source - Stocks, Bonds, Bills and Inflation, Ibbotson Associates 2005 Yearbook,
Market Results from 1926-2004
Exhibit 3
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31,2004
COMPUTATION OF ADJUSTED NET INCOME
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2004 2003 2002
Net income (Exhibit 2) $18,590 ($5,346) $41,045
Adjustments to income:
Auto expense 9,600 8,600 8,000
Office expense 7,100 5,000 4,100
Excess rent 36,000 36,000 24,000
Excess depreciation 4,567 4,567 4,567
Salaries (35,798) (41,153) 13,272
Telephone 2,700 3,200 3,700
Other income (3,722) (269) (407)
Meals 1,194 882 1,826
Total adjustments 21,641 16.827 59,058
Adjusted net income before taxes 40,231 11,481 100,103
Income taxes (9,454) (2,698) (27,642)
Adjusted net income $30,777 $8,783 $72,461
Exhibit 4
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HINTON & ASSOCIATES, INC.
VALUATION OF COMMON STOCK
DECEMBER 31, 2004
COMPUTATION OF ADJUSTED CASH FLOW
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Depreciation
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2004
$30,777
2,880
$33,657
Exhibit 5
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2003
$8,783
2,880
$11,663
2002
$72,461
3,905
$76,366