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HomeMy WebLinkAbout03-5110MOREFIELD COMMUNICATIONS, INC., : Plaintiff : ¥. : NETCOMM SOLUTIONS, INC. & : GREGORY L. MAUCHAMER, : : Defendants : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CiVIL ACTION No. C-~"' 5"~10 C[In'/ JURY TRIAL DEMANDED NOTICE TO DEFEND YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. 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 COURT ADMINISTRATOR Courthouse, Fourth Floor Carlisle, PA 17013 (717) 240-6200 488760.1 MOREFIELD COMMUNICATIONS, INC., Plaintiff V. NETCOMM SOLUTIONS, INC. & GREGORY L. MAUCHAMER, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION No. JURY TRIAL DEMANDED AVISO USTED HA SIDE DEMANDADO/A EN CORTE. Si usted desea defenderse de las demandas que se presentan mas adelante en las siguientes paginas, debe tomar accion dentro de los pmximos veinte (20) dias despues de la notificacion de esta Demanda y Aviso radicando personalmente o por medio de tm abogado una comparecencia escrita y radicando en la Corte por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se le advierte de que si usted falla de tomar accion como se describe anteriormente, el caso puede proceder sin usted y tm fallo por cualquier smna de dinero mclamada en la demanda o cualquier otra reclamacion o remedio solicitado por el demandante puede ser dictado en contra suya por la Corte sin mas aviso adicional. Usted puede perder dinem o propiedad u otros derechos importantes para usted. USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI USTED NO TIENE UN ABOGADO O NO PUEDE PAGARLE A UNO, LLAME O VAYA A LA SIGU1ENTE OFICINA PARA AVERIGUAR DONDE PUEDE ENCONTRAR ASISTENCIA LEGAL. CUMBERLAND COUNTY COURT ADMINISTRATOR Courthouse, Fourth Floor Carlisle, PA 17013 (717) 24046200 Demi F. Piermattei, Esquire Al~.orney I.D. No. 53847 Stephanie E. DiVittore, Esquire Attorney I.D. No. 85906 RHOADS & SINON LLP One South Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for Morefield Communications, Inc. MOREFIELD COMMUNICATIONS, INC., Plaintiff V. NETCOMM SOLUTIONS, 1NC. & GREGORY L. MAUCHAMER, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CWIL ACTION No. (6)~ ~- 3"//o JURY TRIAL DEMANDED COMPLAINT NOW COMES the Plaintiff Morefield Communications, Inc. ("Morefield") by and through its attorneys, Rhoads & Sinon LLP, and files the within Complaint stating as follows: 1. Morefield is a Pennsylvania business corporation with its principal place of business located at 35 North 35th Street, Camp Hill, Cumberland County, Pennsylvania 17011. Morefield is engaged in the business of designing and constructing communication systems for businesses and organizations, including voice, data and audio/video systems. Morefield's construction of commercial commnnication systems involves the use of LAN/WAN communication systems. John D. Morefield is the President of Morefield. 2. Defendant NetComm Solutions, Inc. ("NetComm") is a Pennsylvania corporation with its principal place of business located at 5275 Trindle Road, Mechanicsburg, Cumberland County, Pennsylvania 17050-3552. NetComm is also in the business of designing and constructing commercial communication systems including LAN/WAN communications systems. NetComm is a direct competitor of Morefield. 3. Defendant Gregory L. Mauchamer is an adult individual with an address of 252 Roxbury Road, Newville, Cumberland County 17241. Until on or about September 12, 2003, Mr. Mauchamer was employed by Morefield. 4. This action arises under the laws of the Commonwealth of Pennsylvania and is within the subject matter of this Court. This Court has personal jurisdiction over each defendant pursuant to Section 5301(a) of the Judicial Code, 42 Pa.C.S.A. §5301(a). Venue is proper pursuant to Rules 1006 and 2179 of the Pennsylvania Rules of Civil Procedure. 5. Beginning in approximately 1996, Morefield hired Mr. Mauchamer as an hourly employee. As part of his job position, Mr. Mauchamer was responsible for repairs and troubleshooting for Morefield's LAN/WAN systems. 6. In December, 2000, Momfield posted a job description for an opening within its company for a LAN/WAN Design Engineer. (A copy of the Job Description is attached hereto as Exhibit "A" and incorporated herein by reference). 7. The position of LAN/WAN Design Engineer required, as its primary function, an individual with LAN/WAN design training who would be responsible for working with existing and potential customers to sell, design and construct LAN/WAN communications systems. (Exhibit A). Specifically, the LAN/WAN Design Engineer would travel to customer locations and work to provide price quotations for new systems and upgrades to existing systems. 8. The LAN/WAN Design Engineer provided all technical guidance and support to Sales Representatives in soliciting new customers or soliciting business through sales to existing customers and interacted with the customers or potential customers on a regular basis. 9. Mr. Mauchamer applied for the position of LAN/WAN Design Engineer and, by letter dated January 30, 2001, Morefield confirmed that Mr, Mauchamer was selected for the position. (A copy of the January 30, 2001 Correspondence is attached hereto as Exhibit "B" and incorporated herein by reference). 10. In accepting the position, Mr. Mauchamer was hired as salaried employee of Morefield, receiving an increase in pay of approximately $13,000.00. Pursuant to the job description, the position of LAN/WAN Design Engineer was a salaried position exempt from the provisions of the Fair Labor Standards Act, 29 U.S.C. §§201 et seq. 11. In accordance with the responsibilities of the LAN/WAN Design Engineer to meet with customers and solicit business, as well as the involvement with system pricing and other information, award of the position to Mr. Mauchamer was contingent upon Mr. Mauchamer's agreement to execute an employment agreement. 12. Accordingly Mr. Mauchamer executed an employment agreement dated January 29, 2001 ("Employment Agreement"). (A copy of the Employment Agreement is attached hereto as Exhibit "C" and incorporated herein by reference). 13. The Employment Agreement contained a provision pursuant to which Mr. Mauchamer agreed not to compete with Morefield in the communications system industry in Morefield's primary service area. Specifically, the Employment Agreement provides: Upon the termination of employment with Employer, regardless of the reason, cause or occasion for such termination, Employee shall not, either directly or indirectly, for a period of two years next following the date of such termination, compete with Employer within Employer's Prime Service Area as outlined on the map attached hereto, either on his own account or as a partner or joint venturer or as an employee, broker, agent, producer or salesman for any other person, firm or corporation, or as an officer, director or stockholder ora corporation or otherwise. Employee further a~'ees that upon such termination, he will not either directly or indirectly, for a period of two years next following the date of such termination, in competition with Employer, canvass, solicit, service or accept any business from or for any customer of Employer at the date of such termination or which has been a customer of Employer at any time during the twelve months immediately preceding such termination. It is agreed that the two-year restriction period shall be extended by the length of any period for which Employee may be adjudged to have been in violation of any of the terms of this Paragraph 6. (Exhibit C -- Employment Agreement, ¶6). 14. From February, 2001 through September 12, 2003, Mr. Mauchamer performed his obligations as a LAN/WAN Design Engineer with Morefield, and Morefield fulfilled all of its obligations to Mr. Mauchamer as an employee as required by Pennsylvania law and the Employment Agreement. 15. During this period, Mr. Mauchamer acquired knowledge and information about Morefield's business including its customers, customers' needs, and pricing policies (collectively the "Momfield Proprietary Information"). 16. Mr. Mauchamer met fi-equently with Morefield's existing and potential customers and was involved in discussions regarding system design, construction and pricing in accordance with the existing and potential customers' needs and abilities. As a result, customers became closely acquainted with Mr. Mauchamer as a Morefield employee, associating Mr. Mauchamer, at all times, with Morefield and its construction and design abilities. 17. The Morefield Proprietary Information was developed during Morefield's approximately 60 years of operations in Pennsylvania and is confidential, not known to any of Morefield's competitors. 18. Morefield uses the Proprietary Information in furtherance of its communications design business. The Proprietary Information gives Morefield an advantage over its competitors in the communication design business. 19. As a general matter the Morefield Proprietary Information is not made known to others outside of Morefield and generally known only to certain Morefield employees, but not made known to all Morefield employees. Morefield has employed, and continues to employ, measures to preserve the secrecy of the Proprietary Information. 20. The Morefield Proprietary Information has independent economic value from not being generally known to, and not being readily ascertainable through proper means by, other persons who would gain economic value from its disclosure or use. The Morefield Proprietary Information is not easily acqnired by others because the information is not commonly known in the industry. 21. Morefield. In September, 2003, Mr. Mauchamer voluntarily quit employment with 22. Despite the Employment Agreements which expressly prohibits Mr. Mauchamer from direct or indirect competition with Morefield, including as an employee of a competing business, Morefield believes based on statements made by Mr. Mauchamer, that Mr. Mauchamer has accepted a position of an employee of Defendant NetComm Solutions, Inc., a direct competitor of Morefield. 23. Mr. Mauchamer has represented that he will be performing LAN/WAN design, construction and pricing services for NetComm and will be employed in a similar capacity as his employment at Morefield as Morefield's LAN/WAN Design Engineer -- in the Prime Service Area as detailed by Morefield in the Employment Agreement. 24. At the time Mr. Mauchamer announced that he would be leaving his employment with Morefield, he specifically requested that Morefield release him from his covenant not to compete. At that time, Morefield clearly informed him that he would not be released from his covenant not to compete, 25. Additionally, upon learning of Mr. Mauchamer's employment with NetComm, Morefield, acting through counsel, provided notification to NetComm and Mr. Mauchamer that such employment violated the terms of Mr. Manchamer's Employment Agreement and that if he began working for NetComm, Morefield intended to enforce the terms of the Employment Agreement, specifically Mr. Mauchamer's agreement not to compete with Morefield in the Prime Service Area for a period of two years. (A copy of the Correspondence is attached hereto as Exhibit "D" and incorporated herein by reference). 26. It is believed and therefore averred that Mr. Mauchamer has improperly and without the approval of Morefield provided the Morefield Proprietary Information to NetComm. It is also believed and therefore averred that NetComm agreed to hire Mr. Mauchamer because of his knowledge of the Morefield Proprietary Information, as well as his experience with Morefield's customers. 27. Defendants knew, or should have known, that the Morefield Proprietary Information was (a) derived from or through persons who has used improper means to acquire it, (b) acquired under circumstances giving rise to a duty owed by him to maintain the Proprietary Information in confidence and to limit its use and/or (c) derived from or through persons who owed Morefield a duty to maintain its secrecy and its use. 28. The harm caused to Morefield, moreover, by Defendants' conduct as set forth in this Complaint is not adequately measurable or otherwise ascertainable; thus Morefield has no adequate remedy at law and has been irreparably harmed insofar as it cannot be compensated by damages. 29. Unless Defendants' conduct as set forth herein is enjoined, they will continue to cause immediate and irreparable harm to Morefield. 30. The requested injunctive relief, both preliminary and permanent, is necessary to prevent greater harm than would occur if Defendants' conduct is not stopped, and injunctive relief will restore the parties to the status quo that existed prior to Defendants' wrongful conduct. 31. As set forth in the Motion for Preliminary Injunction filed on behalf of Morefield, preliminary injunctive relief is appropriate here, as here, Morefield has demonstrated that Defendants' conduct is actionable, there is a likelihood of success on the merits of Morefield's claims, injunctive relief will restore the parties to the status quo prior to the unlawful activity, injunctive relief is reasonably suited to abate the unlawful activity, and greater injury will result from the refusal to issue such relief, a preliminary injunction is proper. 32. Permanent injunctive relief is appropriate in this case COUNT I - BREACH OF CONTRACT (Morefield Communications, Inc. v. Mauchamer) 33. Morefield incorporates Paragraphs 1 through 32 above. 7 34. In exchange for valuable consideration, Defendant Gregory Mauchamer executed an Employment Agreement wherein he specifically agreed to refi'ain from competing -~ directly or indirectly -- with Morefield in the commtmications design and construction business in Momfield's Prime Service Area for a period of two years. (Exhibit C, ¶6). 35. Notwithstanding this express obligation, by agreeing to employment with NetComm, a direct competitor of Morefield in the Prime Service Area, Defendant Mauchamer is directly competing with Morefield in the relevant market within the two-year restrictive period. 36. Morefield did not authorize, in writing or otherwise, Mauchamer to compete with Momfield by providing communications services with NetComm. 37. As a direct result of this unlawful and inappropriate competition, Morefield has suffered and, if relief is not granted, will continue to suffer substantial and irreparable injury for which it lacks an adequate, complete remedy at law. 38. Further, Morefield has goodwill and a business reputation to protect with respect to its communications customers. These customers rely on the Morefield and its employees, and by breaching the Employment Agreement and agreeing to employment with a direct competitor, Morefield is irreparably harmed. 39. Additionally, damages will be quite difficult to calculate and speculate. As a result, Morefield has no adequate remedy at law to recover its damages. WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant Gregory L. Mauchamer, enjoining him from further competition with Morefield by providing communications system design and 8 construction services with NetComm Solutions, Inc. in Morefield's Prime Service Area for a period of two years. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. 40. COUNT II - MISAPPROPRIATION OF TRADE SECRETS (Morefield Communications, Inc. v. Mauchamer) Morefield incorporates Paragraphs 1 through 39 above. 41. As set forth more fully above, it is believed and averred that Mr. Mauchamer has improperly and without Morefield's approval, provided the Morefield Proprietary Information to NetComm, and NetComm agreed to hire Mr. Mauchamer because of this knowledge of the Morefield Proprietary Information, his experience with Morefield's customers, and his agreement to provide the that information to NetComm. 42. The foregoing actions of Defendant Mauchamer constitutes willful and malicious misappropriation of Momfield Proprietary Information in violation of Pennsylvania common law of trade secret misappropriation. 43. By reason of the foregoing, Morefield has suffered and, if relief is not granted, will continue to suffer substantial and irreparable injury for which it lacks an adequate, complete remedy at law. 44. The actions of Defendant Mauchamer constitute conversation and misappropriation of the Morefield Proprietary Information. 45. Morefield is entitled to injunctive relief prohibiting the communication of any Morefield Proprietary Information, as well as damages, to the extent ascertainable, to 9 compensate Morefield for the loss of business and injury to goodwill and reputation caused by Mauchamer's misappropriation of Proprietary Information. WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant Gregory L. Mauchamer, enjoining him from further disclosure of Morefield Proprietary Information. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. 46. COUNT III - UNFA/R COMPETITION (Morefield Communications, Inc. v. NetComm Solutions, Inc.) Morefield incorporates Paragraphs 1 through 45 above. 47. The aforesaid action of Defendant NetComm, in agreeing to hire Mr. Mauchamer in exchange for Mr. Mauchamer's agreement to provide NetComm with Morefield Proprietary Information constitutes common law unfair competition. 48. NetComm's actions are willful, intentional and unprivileged and have caused, and are causing, irreparable harm as well as monetary damages to Morefield. WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant NetComm Solutions, Inc., enjoining it from use or disclosure of Morefield Proprietary Information. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. 10 49. COUNT IV - MISAPPROPRIATION OF TRADE SECRETS (Morefield Communications, Inc. v. NetComm Solutions, Inc.) Morefield incorporates Paragraphs l through 48 above. 50. As set forth more fully above, it is believed and averred that NetComm hired Mr. Mauchamer in exchange for Mr. Mauchamer's agreement to provide NetComm with that information, as well as hi experience with Morefield's customers. 51. It is believed and therefore averred that NetComm has that information and will utilize it to solicit customers in direct competition with Morefield. 52. The foregoing actions of NetComm constitute willful and malicious misappropriation of Morefield Proprietary Information in violation of Permsylvania common law of trade secret misappropriation. 53. By reason of the foregoing, Morefield has suffered and, if relief is not granted, will continue to suffer substantial and irreparable injury for which it lacks an adequate, complete remedy at law. 54. The actions of NetComm constitute misappropriation of the Morefield Proprietary Information. 55. Morefield is entitled to injunctive relief prohibiting the communication of any Morefield Proprietary Information, as well as damages, to the extent ascertainable, to compensate Morefield for the loss of business and injury to goodwill and reputation caused by the misappropriation of Proprietary Information. 11 WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant NetComm Solutions, Inc., enjoining it from any use or disclosure of Morefield Proprietary Information. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. 56. COUNT V - TORTIOUS INTERFERENCE WITH CONTRACT 0Morefield Communications, Inc. v. NetComm Solutions, Inc.) Morefield incorporates Paragraphs 1 through 55 above. 57. NetComm knew that Defendant Mauchamer executed an Employment Agreement with Morefield wherein Defendant Mauchamer specifically agreed that he would not compete with Morefield in its Prime Service Area for a period of two years following the end of his employment by, among other things, working as an employee of Morefield's customers. (Exhibit D). 58. Despite this knowledge, however, NetComm agreed to employ Mr. Mauchamer in its business, in direct competition with Morefield. 59. These actions by NetComm constitute tortious interference with Momfield's contractual relationships. NetComm took this action with the intent to cause the breach of the contract between Mauchamer and Morefield, and NetComm's action were not privileged or justified. 60. As a result of this conduct, Morefield is entitled to injunctive relief prohibiting the employment of Mr. Mauchamer in a communication system design, construction or pricing 12 position for NetComm of any Morefield Proprietary Information, as well as damages, to the extent ascertainable, to compensate Morefield for the loss the breach of the Employment Agreement. WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant NetComm Solutions, Inc., enjoining it employing Gregory Mauchamer in its communication system business for a period of two years. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. COUNT VI -INTERFERENCE WITH CONTRACT/BUSINESS RELATIONSHIPS (Morefleld Communications, Inc. v. NetComm Solutions, Inc.) 61. Morefield incorporates Paragraphs 1 through 60 above. 62. The aforesaid actions by NetComm -- employing Mr. Mauchamer in order to obtain Morefield's customer lists, knowledge of Morefield's customers' requirements and needs and Morefield's pricing system -- was for the sole purpose of soliciting Morefield's customers as its own and interfering with the contracts and business relationships existing between Morefield and its customers. 63. This conduct by NetCornm constitutes a tortious interference with Morefield's existing and prospective contracts. 64. NetComm's conduct was not privileged or justified, but has instead been malicious, reckless, willful, oppressive and intentional. As a result, NetComm's actions are in direct violation of Pennsylvania law. 13 65. As a result of this conduct, Morefield is entitled to injunctive relief prohibiting the solicitation of Morefield customers utilizing Defendant Mauchamer and/or any information provided to NetComm by Defendant Mauchamer regarding Morefield's customers, communication design systems and pricing, as well as damages. WHEREFORE, Morefield Communications, Inc., respectfully requests that this Court award judgment in its favor and against Defendant NetComm Solutions, Inc., enjoining it from solicitation of Morefield customers through Defendant Mauchamer or through use of any information obtained from Defendant Mauchamer. Morefield Communications, Inc. also respectfully requests that this Court award it damages, to the extent ascertainable, in an amount in excess of $25,000.00, together with interest, costs, attorneys' fees and any other relief that this Court deems appropriate. Respectfully Submitted, RHOADS & SINON LLP ~.g(-~hanie E. DiVittore One South Market Square P. O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for Morefield Communications, Inc. 14 117 ~31 §637+ RItOADS $INON LLP 1~01~ VERIFICATION' Kenneth Mathias, deposes and says, subjoct W the Penalties of 1~ PaC.S.A. §4!)04 rola~.,ug w tmsworn falsii~.:ation to authorities, that he is the Director of Engineerin~ of Morefield CommtmJcal/on~, I. ac., that he makes th/s vedfical/on by its authority and that the fact,~ set fc~.h in the foregoing Compla/nt are tr~ and correct w the best ofh/s k~owledgc, informat/on and belief Mor~ficld Communications, I~c. Kemaeth M,aflaias Job Description Job Title: LANfWAN Design Engineer Reports To: Director of Engineering FLSA Status: Exempt Department: Engineering Department Location: Camp Hill, PA Date: December 28, 1999 Summary: The LAN/WAN Design Engineer will be responsible for pre-sale and post-sale engineering functions with respect to product codes 7 and 8. Additional functions will include consultative support for the data networking Sales Representatives, new product investigation, standards and practices development, and field technician support. Essential Duties and Responsibilities include the following. Other duties may be assigned. 1. Data Engineering Process · Translates detailed scope of work provided by Sales Representative and data liaison into product quote which includes: · Part list and labor allowances with cost. · Network diagram · Reviews orders for part list accuracy. · Reviews completedjobs for initial quote accuracy and improvement. · Standardizes and documents process. · Provides technical expertise to Sales Representatives/liaison as needed. · Accompanies Sales Representatives on customer sales calls. · Participate in defining Standards and Practices for Morefield Communications products and services. · Provides tier II SAC type support for data products to Technicians and customers. 1. Product management · Interface with vendor representatives to perform the following: · Keep abreast of new products, product changes, and product retirements. · Maintain current documentation. · Obtain support for questions or problems. · Facilitate and/or provide training as needed. I. Product Staging · Assists Operations with staging new product prior to customer delivery. · Resolves any problems uncovered during staging. 1. NewProduct Investigation/Introduction · Assists Director in investigation and testing of new products · Assists with investigations into new products or product areas. Investigates hardware requirements, helps implement test environments and documents findings. · Assists inrollout · Performs documentation and training Environmental Conditions: While performing the duties of this job the employee is occasionally exposed to wet or humid conditions (non-weather), work near moving mechanical parts, work in high, precarious places, fumes or airborne particles, toxic or caustic chemicals, extreme heat and cold (non-weather), and vibration. The employee is frequently exposed to the risk of electrical shock. January 30, 2001 Gregopg L. Maucharncr 252 l~oxbury Road Newville, PA 17241 Dear Greg, I am pleasze, d to cortfirm your promotion to the position of LANIWAN Dqsign Engineer effective Monday, February 5, 2001. The position description is enclosed. This is a salaried, exempt position mad your ncw salary will be $48,000 aYanually Your regular annual review date for future performance reviews is changed to Februar~ 5. As a member of the Engineering Department, you will not be provided with a company vehicle as you have in the Operations Dcpartn-tent. This change will become effective by April I, 2001. Enclosed is our "Employment Agreement" for your signature. Signing the Agreement is a necessary part of this job offer. Please sign this letter, the 1~ and attachments, and return them to me indicating your acceptance of'this Congratulations! We arc looking forward to the contribntions you will m Employment mployment Agreement fief. kc to Morefield Communications and hope you will fred your new position challenging mkd rewazding. Sincerely, Janis Glosenger Human Resoumcs Manager accept the p?sltion o£LANfWAN ~)esi~ma Engineer with Moreficld Comrr unications 35 No,ih 351h 51reel · Ct~mp Hill: PA 17011 - Telepho,c= {717J 761-6170 -/o~. (717) 763-6964 E1VH?LO~NTAGREEMENT AGREEMENT made this 29th day of January, 2001. blat'ween MOREFIELD COMMUNICATIONS, INC., 35 North 35th Street, Camp Hill, Permsy~vania (hereinafter called "Employer"), and Gregory L. Mauchamer, (hereinafter called "Employee"). 1 Employer hereby employs Employee and Employee hereby accepts employment with Employer as LAN/WAN Design Engineer. Employee s dutaes shall be those set forth on · I the Job Description Schedule attached hereto and such other duties_as Employer may from time to time .-~sign to Employee. 2. Employee shall devote f~lll time, attention and best efforts to the~ithful discharge of such duties. Employee shall not engage in any employment or activi~ that is La competition with Employer, and shall not engage in any employment during non-working hours without the express written consent of Employer. Employer shall pay to Employee the compensation set forth on the Compensation Schedule attached hereto. Employee shall also be entitlc<t to the employment benefits set forth in the Employee I-Iandbook issued to all employees. It is expressly understood and agreed that the compenSation and employment benefits may be altered by Employer at any time without the consent of Employee. Compensation Sche~lule is incorporated in employment offer letler dated January 29, 2001, which is atlache4tb this Agreement. / In the performance of duties, Employee may be provided with}°°ls, parts, equipment, vehicles, manuals and other items. It is understood an~ agreed[that, unless specifically excepted, all of such items shall be and remain the exclusive property of Employer, Employee shall exercise due care in the use of such. items a~d shall return them to Employer upon request or upon termination of employment, 1 During th,e term of employment, Employee may acquire knowledge or information about Employer s business, pricing policies, customers, customers'[equipment, customers' needs and other matters not of common or public knowledge. Asia.result, Employee may be solicited to divulge such k~owledge or ixfformmion or to accept employment with a ..~$:o,,.er. ;,~th a p'zrsnr, or e~' s~-~kLug to co business w~th/ a customer, or with a person or entity in competition with Employer. Employee agrees that such knowledge or information is confidential and the exclusive property of Employer. Accordingly, Employee shall not use or divulge that knowledge or information in any rna.truer that :nay be detrimental to Employer's business, whether,during employment or after termination, and shall not m',&e any personal record of the same. Further, in addition to the restrictions set forth in paragraph 6 hereof, Employee shall not, aC{or a period of two years after termination of employment, acCept employment with any c~stomer of Employer or with any person or entity seeking to do business with such customer. IN WITNESS WHEREOF, this Agreement has been executed the day an, Upon the termination of employment with Employer, regardless of the reason, cause or occasion for such tenv. ination. Employee shall not. either dh'ectly or indirectly, for a of two years next following the date of such termination. Ic0mpete with Employer period within Employer's Prime Service Area as outlined on the map altached hereto, either on his own account or as a partner or joint venturer or as ma er~ployec, b.roker, agent. producer or salesman for any other person, fzrm or corporation. 6r as an officer, director or stockholder of a corporation or otherwise. Employee furthelr agrees that upon such termination, he will not either directly or indirectly, for a peffiod of two years next following the date of such termination, in competition with Em~ ~1oyer. canvass, solicit, service or accept any business from or for any customer of Emp! dyer at the date of such termination or which has been a customer of Employer at any' time during the twelve months immediately preeefling such termination. It is agreed thai the two-year restriction period shall be extended by the length of any period for wl ~ich Employee may be adjudged to have been in violation of any of the terms or this Par~ i~aph 6. Employee ack:now.ledges that the provisions of Paragraphs 5 and ; o£ this Agreement are critical and essential, terms hereof and of tlae employment relafiom tip. and that, except for Employee's agreement to said provisions, Employer would not 1~ ve been wilIi.ng to enter into this Agreement and to create or sustain the employment rclat[Ionsbip. ! This Agrec~rnent and the employment relationship may be termilmal ted by either party, at any time, with or without cause, immediately upon the g~vmg of ~aot~ce to the other party. Regardless of the time, manner or reason for termination, the pr~visions of paragraphs 5 and 6 of tiffs Agreement shall continue in effect. [ The terms and l~rovisions of this Agreement are severable. 'If ~ny term or provision is held to be invalid or unen:t'orceable, in whole or in part, the sawn6 shall not render any other term or provision invalid or unenforceable. IX any provision Of Paragraphs 5 or 6 is held to be unreasonable, the same shall be valid and enforceable to the extent held to be reasonable. ~,ear set forth above. OREFIELD COM UNICATIONS, INC. · (Employer) Morefield Communications. Prime Service Telrit°ry,, This map is accepted by Gregory L. Maucbomer as the map referred to in item (6) of ihe ATTORNEYS AT LAW TWELFTH FLOOR ONE SOUTH MARKET SQUARE P.O. BOX 1146 HARRISBURG, PA 17108'1146 TELEPHONE (717) 233-S731 FAX: (717) 231-6637 EMAIL: $1ochinger@rhoads-sinon.com W E B S I T E: www.rhoBds-sinon,com September 23, 2003 Re: Morefield Communications, Inc. -- Gregory L. Mauchamer OFCOUNSEL HENRY W. RHOAOS ~ETIRED ]OHN C. DOWLING PAULH. RHOADS DIRECT DIAL NO. (717) 231-6633 FILE NO. 140/' 19 NetComm Solutions Attn: Mark Wilson, President 5275 Trindle Road Mechanicsburg, PA 17050-3552 Via Facsimile and Federal E~pre~5 Dear Mr. Wilson: This Firm represents Morefield Communications, Inc. It is our client's understanding that NetComm Solutions has agreed to employ Mr. Gregory L. Mauchamer. As you may or may not be aware, Mr. Mauchamer was employed as a LAN/WAN Design Engineer with Morefield. It is our understanding that Mr. Mauchamer has accepted either the same or a similar job with your company and is scheduled to begin his employment on Monday, September 29, 2003. If this information is accurate, you should be aware of the fact that Morefield Commtmications has what we consider to be a valid and enforceable covenant not to compete with Mr. Mauchamer. Moreover, it is our client's intention to enforce the covenant not to compete through injunctive relief immediately. We have attached a copy of the agreement to this letter for your review. Failure to contact the undersigned immediately will result injunctive proceedings being initiated against NetComm Solutions and Mr. Mauchamer. Very truly yours, RHOApS & S1NON LLP Sha'wK D. 'Lochinger SDL:rdf Attachment cc: Marcus A. McKnight, III, Esquire (Atty. for Gregory Mauchamer) - Fax & Federal Express CERTIFICATE OF SERVICE I hereby certify that on this ~ ~ay of September, 2003, a tree and correct copy of the foregoing Complaint was served, in advance of filing, by means of Facsimile upon the Following: Via Facsimile 717.770.2553 Robert Kline, Esquire P.O. Box 461 New Cumberland, PA 17070 (Counsel for Defendant NetComm Solutions, Inc.) Via Facsimile 717.249.6354 Marcus A. McKnight, III, Esquire 60 West Pomfret Street Carlisle, PA 17013 (Counsel for Defendant Manchamer) MOREFIELD COMMUNICATIONS, INC., Plaintiff : NETCOMM SOLUTIONS, INC. & : GREGORY L. MAUCHAMER, : Defendants : : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION No. 099-5'[[0 JURY TRIAL DEMANDED ORDER day of , 2003, for the reasons set AND NOW, this forth in the Motion for Ex Parte or Special Injunction and Preliminary Injunction filed on behalf of Morefield Communications, Inc., it is hereby ORDERED as follows: (a) Defendant Gregory Mauchamer is enjoined from working for Defendant NetComm Solutions, Inc. in Morefield's Prime; Service Area until such time as this Court conducts a heating on Morefield's Motion for Preliminary Injunction; (b) Defendant Gregory Mauchamer is enjoined from disclosing or utilizing Morefield's Proprietary Information, including without limitation Morefield's customer lists, design specification and pricing policies, until such time as this Court conducts a hearing on Morefield's Motion for Preliminary Injunction; (c) Defendant NetComm Solutions, Inc. is enjoined from employing Defendant Mauchamer in Morefield's Prime Service Area until such time as this Court conducts a heating on Morefield's Motion for Preliminary Injunction; (d) Defendant NetComm Solutions, Inc. is enjoined from utilizing or disclosing Morefield's Proprietary Information, including without limitation Morefield's (e) (f) (g) (h) (i) customer lists, design specification and pricing policies, until such time as this court conducts a hearing on Morefield's Motion for Preliminary Injunction; A hearing is scheduled with respect to the Preliminary Injunction Motion on Thursday, October 2, 2003, at 11:00 a.m., in Courtroom Number 2; Defendant NetOomm is ordered to produce a designee with knowledge of the interviewing and hiring of Defendant Mauchamer for deposition at the offices of Rhoads & $inon LLP on Tuesday, September 30, 2003 at 1:00 p.m.; Defendant Mauchamer is ordered to appear for deposition at the offices of Rhoads & $inon LLP on Tuesday, September 30, 2003 at 1:00 p.m.; The ex parte injunction shall become effective against defendant NetComm Solutions, Inc., upon plaintiff depositing with the Prothonotary a bond or legal tender in the amount of $500 pursuant to Pa. Rule of Civil Procedure 1531(b); The ex parte injunction shall become effective against defendant Gregory L. Mauchamer, upon plaintiff depositing with the Prothonotary a bond or legal tender in the amount of $500 pursuant to Pa. Rule of Civil Procedure 1531(b). V1NVA"IA~JNN~ MOREFIELD COMMUNICATIONS, INC., Plaintiff V. NETCOMM SOLUTIONS, INC. & GREGORY L. MAUCHAMER, Defendants IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION No. 03-5510 JURY TRIAL DEMANDED JOINT REQUEST FOR CONSENT ORDER Based on the fact that Plaintiff Morefield Communications, Inc. and Defendants NetComm Solutions, Inc. and Gregory L. Mauchamer have reached a resolution of the claims set forth in Morefield's Complaint and Motion for Injunctive Relief filed in this matter, the parties seek a Consent Order to resolve this litigation. The terms of the parties' resolution are set forth in the Settlement Agreement attached hereto as Exhibit "A" and incorporated herein by reference. At this time, the parties respectfully request that this Court enter an Order confirming the terms as set forth in the Settlement Agreement. By: Attorneys for Plaintiff Dean F. Piermattei RHOADS & SINON LLP One South Market Square P. O. Box 1146 Harrisburg, PA 17108-1146 (717) 233-5731 Attorneys for Defendant Mauchamer 60 West Po ~r~t Street ~ Carlisle, PA 170~,~_ _~ (717) 249.-2353 Attorneys for Defendant NetComm Solutions, Inc. By:~"~~~~ Robert Kline, Esquire P.O. Box 461 New Cumberland, PA 17070 (717) 770-2540 490176.1 10/00/2003 12:18 FAX 717 231 6600 RHOADS & SINON SETTI,F~MENT AGREEMENT This Settlement Agreement (hereinaftc~r referred to as "Settlemcnt Agreement") is made this ('~' day. of October, 2003, by and between Mor~ficld Communications, Inc. ("Morefield") and Grcgo~ L. Manchamer ("M~uchamer"). WF~-REAS, Moreficld employ~ Manchamer ;~s a LAN/WAN, Design Engine~ pursuant to the terms of an Bmp]oyment Agreement dated Januay 29, 2001 ("Emplo~ymenI Agreement") that cont~i~ed, among other things, a Covenant Not To Compete and a uon-disclosur~ of confidential information and trade sc~rets chuse; and WHEREAS, Manchamer voluntarily left thc employ of Morcfield and contracted t~ work for NctCom Solutions, Inc. in thc same or similar position as he had been ~,~loyed ~ Momfield; and WHEREAS, Mor~field filed a Complaint and obtained an injunction again,, Mauchamer to preclude the commencement of his employment with NctCom in violation of th Employment Agreement; and WHEREAS, Mauchamer and Morefield now desire this matter to bc resolve without the need for additional legal proccedinffs. NOW, TI-m. REFORB, in consideration of the :mutual covenants contained herei and for other good and valuable consideration, the parties l~:rcto, with the intent to be lcgall bound, agree as follows: 1. For and in consideration of the agreement of Momfield not to pumue ti. action as commenced against Mauch~mer, and for other good and valuable consideration set fort herein, the receipt of which is hereby acknowledged by Mauch~mer, Man, harrier agrees tha~: (a) Paraflraphs (5) through (9) of [he F_~q,loyment Agreement dated lanuay 29, 2001 between Morefi¢ld and Maucbam~r win ~ma~ in fun fo~c~ and effect for one year following thc date this Settlenmit Agreement is executed, as evidenced by the date f~st written above. Mauchamer specifically acknowledges and understands that the Cove~mt Not To Compete ~ud th~ promise not to disclns¢ any confidential or trade secret inf°rmation contained in the Employment Agreement are to continue in full force and effect for one year l~om the date this Agreement is ~xecuted as against any and all potential employers in general and as ag~iu.~t NctConnn Solutions, Inc, in particular (although Mauchamcr further understm~ds and a~t~es that thc common law proMbilion ag.i~t disclosing any of Morefield's confidential or trade secret information remain in effect against these 10/06/2003 12:18 FAX 717 231 6600 RHOADS & SINON entities indefinitely)- Mauchamer also agrees that he will not p~n~orm any dutias for Morefield and will not be compensated by them, but bis responsibilities under paragraphs (5) through (9) of the Agr~v. ent (which is attached hereto as Exhibit "A") will remain in fill1 for~e and effect_ Co) Maucb2mer will notify Moreficld of any and all employment that he is off~red at least two weeks before any such ~mployment commences during the tsrm of t~ Settlement Agreement. To thc,, ~mt ~ ci~m~tances l~asonably preclude Mauchamer .from providing ~wo weeks notice trader this paragraph, Maucbamer agrees that he will provide as much notice as is reasonably possible under the circ~mstances, but in no case shall the notice be less than two business days. The parties agree that the term "employment" includes, but is not limited to Maucham~r accepting work, either direly or indirectly as an ind~tmdent conlractor, sole proprietor, partner, joint venture, employee, broker, agent, officer, director or stockholder prior to actually beginning such ~ploym~t. Mauch~r~er farther agrees that Morefield will have the right to analyze and verify such prospective employment. The parties agree that if Morefield reasonably believes that such employment is in opposition to the Nauploym~nt Agreement, Morefield can and will d~y Mauchamer permission to accept said employment. Morefield agrees that such permission will not be urazasonably withheld. The parties further agree that Mauchamer will have the right to legally c~lleng¢ any decision by Morefield to deny permission for Mauchamer's oiiploym~t as a violation of the terms of the Employment Agreement. The parties fiuther agree, however, that if Mauchamer und~-rtakes such a legal challenge and Morefield's position is upheld in the tribune! wh~re it is present~l, Ma~eh~-mer will be responm'ble for and pay Morefield's costs, iucluding attorney's fees associated with litigating the matter. (c~ Mauchamer agrees to give Morefielfl at least one week's notification of any employment changes or intent to change ~loyment that occur within the one year period following the execution of this Agreement so that Morefield can analyze it as set forth in paragraph l(b) above. To the extent that Mauchamer's e,~-,?loymont is ~av,~nat. ecl by an employer, and the cire~mstances do not allow for him to pr°Vich~ one week's notice, Manebsmer agrees that he will provide as much advance notice, as is reasonably possible given the circumstances. (d) Mauchamer also agrees to r~tify the Human Relations Director at Moreficld (Janice Glosenger or her replacement) at least once every three months as to the cummt status of his employment, including any and all locations of employment sad work performed. Manehsmer agrees that Morefield will have the right to verify said information and deny Mauchsmer p=naission to work as under paragraph l(b) above. - 2 10/06/2003' 12:19 FAX 717 231 6600 RHOADS & SINON ~005 (o) Mauchamer also agrees that he will submit both his 2003 and 2004 tax returns, W-2's, ~nd 1099's to Morefidd for review in order to verify that Mauchamer is not working in violation of thc Employment Agreement. Morefield hereby acknowledges and agrees that said tax return, W-2, and 1099 information is confidential and Morefield will not disclose it to any party except its attorneys. 2. For and in ~onsideration of the Agreement by Morefi¢ld not to pursue its claim a~i,~t Manchamer, and for other good and valuable considerations set forth herein, the receipt of which is hereby acknowledged by Mauchamer, Mauchvaner agrees that he will not seek to obtain tmemployment compansati°n against Mordield based upon the vOluntazy termination ofhi.~ employment from Morefield in this matter. 3. In considmation of the foregoing, Manchamer, for himself; his heirs. r~res~tafives, succe*sors and assigns hereby releases and forovex 'discharges Moretield, it~ ~dminislxatorS, officers, agents, employees, sea'vants, successors, ~, and assigns, of and any arid all cl2img, actions, causes of aetion, demands, or rights, ag~ingt any ofth~ aforementione/ persons or entities, front the beginning of time to the date of this Release. This Release includc~ but is not limited to any and all actions concerning Mancbam~r's employment or temgnation o: employment ~om Moreield, as well as any and all actions for Momfield fQing the present action h order to onforc~ the Employment Agr~mant. / 4. Morefield agree* to withdraw and discontinue any and all actions brough~ against Mauchamer, and specifically the C°mPlaint filed in Cumberland County Court of Commo~ Pleas and doc.,koted as No. 03-5110. Mane. hamer has denied the :allegations in the Corrr!a. laint. 5. This Agreement coat,ins thc entire agr,~ment between the parties heret, and the t~,,,s arc of a contractual and not a mere r~cital. 6. The parties agree that this Agreement shall be governed by Ired interprete, according to the laws of the Commonwealth of Permsylvania_ Should .Morefield be required enforce the provisions of this Agreement and should it prevail, Morefield ~s entitled to rocover fro~ Mauchamer, its costs, including reasonable attorney's fees. 7. In the ~vant that any one or mom of the provisions of this Agre~n~nt shsll~ for any reason, be held invalid, ille~al, or unenforceable in any respect, such invalidity, illegality, or uncnforoeability shall not affect any other provision of this Agreement. , $. It is understood and agreed that this A_gr~ment is given to establish a~ amicable basis for avoiding, any further legal proceedings in this matter. This A~eement is not t9 be construed as an admission of liability by Morefield, any sllch liability bcillg hereby expressly - 3 /06/2003 12:19 FAX 717 231 6600 RHOADS & SINON ~0061 9. This Agreement e~--ot be amended or modified except by a va4ting ag~ed to and signed by all parties hereto. 10. ]By signatures hereto affixed, the parties aCknowledge that they have read this Agreemc'nt and have ~ the advice of co~msel pertaining thereto, prior to tho 6m¢ of execution. Intonding to b~ legally bound he.by, tha parties, pcl~onally or by the~ duly authorized officers or directors, have ox~cuted thi~ Agrecmont as oftha dato first written above. ATTEST: (SEAL) MOREFTRT,EI COMMUNICATIONS, ]NC, - ~~06fY~ L. MAUCHAM'~.K (SEAL) - 4 MOREFIELD COMMUNICATIONS, INC., PLAINTIFF : IN THE COURT Of COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA NETCOMM SOLUTIONS, INC. & GREGORY L. MAUCHAMER, DEFENDANTS · 03-5110 CIVIL TERM AND NOW, this ORDER OF COURT day of October, 2003, based on the attached settlement agreement, IT IS ORDERED: (1) The ex parte order entered on September 2·5, 2003, IS VACATED. (2) Defendant, Gregory L. Mauchamer, shall adhere to the terms set forth in th( attached settlement agreement which is made an order of this court. Dean Piermattei, Esquire For Plaintiff Marcus A. McKnight, III, Esquire For Gregory L. Mauchamer Robert P. Kline, Esquire For NetComm Solutions, Inc. Edgar B. Bayley, J. / :sal MOREFIELD COMMUNICATIONS, 1NC.: OF PENNSYLVANIA, : Plaintiff V. NETCOM SOLUTIONS, INC. & GREGORY L. MAUCHAMER, Defendants Kindly mark IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA $'116 CIVIL ACTION NO. 03-551 $ JURY TRIAL DEMANDED PRAECIPE TO DISCONTINUE docket in this matter discontinued and ended with prejudice. Respectfully submitted, ~--~Ong,8~ Market Square, 12th Floor P.O. Box 1146 Harrisburg, PA 17101 (717) 233-5731 Dated: October 30, 5 003 Attomeys for Plaintiffs 480089.1 480089.1 CERTIFICATE OF SERVICE. I hereby certify that on this 30th day o£ October, 2003, a true and correct copy o£ the foregoing Praecipe to Discontinue was served by means of First Class Mail, Postage Prepaid upon the following: .obert Kline, Esquire .O. Box 461 ~ew Cumberland, PA 17070 darcus A. McKnight, III, Esquire i0 West Pomfret Street 2arlisle, PA 17013